THE MEMORIAL DAY WEEKEND AND THE UNOFFICIAL KICKOFF OF SUMMER ARE FINALLY HERE BUT WHERE'S DIET COKE AT WHAT MIGHT SEEM LIKE THE IDEAL TIME FOR AN AD BLITZ FOR THE LEADING LESSTHANACALORIE SOFT DRINK DIET COKE COMMERCIALS ARE MISSING IN ACTION ENTIRELY OFF THE AIR THE BRAND'S NOPROFILE TURNS OUT TO BE MORE THAN A STARTOFLULL THE MUCHMALIGNED NEW CAMPAIGN FROM DIET COKE'S AGENCY LINTAS IS IN TROUBLE ACCORDING TO KNOWLEDGEABLE INDUSTRY EXECUTIVES NEW CONSUMER TESTING SHOWS VIEWERS DON'T MUCH LIKE THE NEW DIET COKE ADS BOTTLERS DON'T CARE FOR THEM EITHER AND NOW THE MARKETERS IN CHARGE OF DIET COKE ARE APOPLECTIC OVER WHAT TO DO ABOUT IT INTERPUBLIC GROUP'S LINTAS DIET COKE'S AD AGENCY SINCE 1982 ALTERED THE BRAND'S STRATEGY EARLIER THIS YEAR IT REPLACED CLEVER COMMERCIALS STARRING ELTON JOHN WITH A BLITZKRIEG OF JOLTING RAPIDFIRE ADS THAT OFFER UP DOZENS OF QUICKCUTTING IMAGES OF TRIM AND FIT BODIES DIVING JOGGING AND OTHERWISE STRAINING TO THE TUNE OF SOARING THEME MUSIC THE NEW ADS ALSO SCRAPPED DIET COKE'S ONLY SLOGAN SINCE IT WAS INTRODUCED IN 1982 JUST FOR THE TASTE OF IT IN FAVOR OF TASTE IT ALL INDUSTRY RESEARCH REVEALED THAT VIEWERS WERE TURNED OFF BY THE MONTAGES THAT FEATURED A PROCESSION OF MINISTERS WHO SURF SURGEONS WHO SCULPT INSURANCE AGENTS WHO SPEED ON MOTORCYCLES AND THE LIKE ONE PERSON WITH ACCESS TO THE CONFIDENTIAL DATA SAYS THE AUDIENCE EASILY TIRED OF THE CAMPAIGN LINTAS WENT WITH FLASHY PHOTOGRAPHY THAT DIDN'T REALLY FOCUS ON DIET COKE THIS PERSON SAYS ADDING DIET COKE HAS TO PRODUCE SOMETHING TO HOLD PEOPLE'S INTEREST AND MAKE THEM WANT TO REVISIT THE AD OUTSIDERS CONCUR THE ADS WERE CONFUSING SAYS TOM PIRKO PRESIDENT OF BEVMART A CONSULTING FIRM THERE WASN'T ONE SOLID MESSAGE ONE COCACOLA BOTTLER PRIVATELY ADDS THEY DON'T CONVEY A WARM FUZZY FEELING LIKE THE GREAT COKE ADS OF THE PAST THEY'RE COLD THE NEW CAMPAIGN'S FALTERING COMES AT A DIFFICULT TIME FOR DIET COKE THE 128 BILLION DIET BEVERAGE MARKET HAS PEAKED AND CONSUMERS ARE GUZZLING BOTTLES OF WATER TEA AND JUICES THE MARKET SHARE FOR DIET DRINKS IN 1992 WAS FLAT AT 27 AFTER RISING FOR AT LEAST FIVE CONSECUTIVE YEARS SAYS JESSE MEYERS EDITOR OF BEVERAGE DIGEST IT USED TO BE THAT A DIET DRINK HAD TO BE READILY AVAILABLE BE CHEAP AND TASTE GOOD SAYS MR MEYERS NOW YOUNGER CONSUMERS ALSO FEEL THAT THE SOFT DRINK THEY HAVE MUST BE GOOD OR BE PERCEIVED AS BEING GOOD FOR THEM DIET COKE AND DIET PEPSI BOTH LOST MARKET SHARE RECENTLY DIET COKE'S GRIP HAD SLIPPED TWOTENTHS OF A POINT TO 72 BY JANUARY COMPARED WITH A YEAR EARLIER WHILE DIET PEPSI'S SHARE FELL THREETENTHS OF A POINT TO 54 ACCORDING TO BEVERAGE DIGEST IN THE FIRST QUARTER OF THIS YEAR MOREOVER SALES OF DIET COKE WERE OFF 2 TO JUST SHY OF 180 MILLION ALTHOUGH DIET PEPSI HAD AN EVEN SHARPER 41 DROP TO 135 MILLION ACCORDING TO AC NIELSEN CO LINTAS EXECUTIVES INCLUDING F STONE ROBERTS PRESIDENT AND CHIEF OPERATING OFFICER OF LINTASNEW YORK HUDDLED WITH COCACOLA BRASS AT COKE'S HEADQUARTERS IN ATLANTA LAST WEEK TO TALK ABOUT THE CAMPAIGN MR ROBERTS DECLINES TO SAY HOW THINGS WENT A COKE SPOKESWOMAN SAYS ONLY THAT THE COMPANY PLANS A SIGNIFICANT MARKETING SUPPORT EFFORT FOR DIET COKE LATER THIS SUMMER THE COMPANY WON'T SAY SO BUT EXECUTIVES FAMILIAR WITH THE EFFORT SAY LINTAS IS WORKING ON A NEW ROUND OF COMMERCIALS IN AN ATTEMPT TO SET THINGS RIGHT COKE'S DISAPPOINTMENT WITH THE DIET COKE CAMPAIGN WAS UNDERSCORED LAST WEEK WHEN IT SET ASIDE 21 MILLION IN EXTRA SPENDING FOR THE NEW SPATE OF COKE COMMERCIALS FROM CREATIVE ARTISTS AGENCY SOME OF WHICH WAS TAKEN FROM THE DIET COKE CAMPAIGN INDEED COKE EXECUTIVES ARE SO PLEASED WITH SOME OF THE CAA SPOTS THAT THEY RECENTLY ORDERED ANOTHER BATCH OF COMMERCIALS STARRING THE BELOVED COMPUTERDRAFTED POLAR BEARS THAT INHABIT ONE ESPECIALLY POPULAR COKE AD THE NEW SPOTS MAY END UP RUNNING APPROPRIATELY ENOUGH DURING TELEVISION COVERAGE OF THE 1994 WINTER OLYMPIC GAMES WITH THE PARENT COMPANY SIPHONING OFF DOLLARS FROM DIET COKE THAT BRAND'S TOTAL AD BUDGET COULD DECLINE FROM THE 607 MILLION LEVEL OF 1992 WHICH ITSELF WAS DOWN FROM 624 MILLION THE YEAR BEFORE YET IN THE FIRST TWO MONTHS OF THIS YEAR DIET COKE'S AD SPENDING TOTALED 20 MILLION CHUGGING ALONG AT 15 HIGHER THAN A YEAR EARLIER ACCORDING TO LEADING NATIONAL ADVERTISERS LINTAS'S TROUBLES MAY HEIGHTEN SPECULATION THAT CAA AND AGENT MICHAEL OVITZ COULD STEP IN AND GET INVOLVED IN THE DIET COKE EFFORT MUCH IN THE WAY CAA ALL BUT SUPERSEDED INTERPUBLIC GROUP'S MCCANNERICKSON IN CREATIVE WORK ON THE COKE CAMPAIGN BUT INDUSTRY INSIDERS SAY NOT TO WORRY CAA MAY DEEM THE DIET COKE BUSINESS TOO SMALL TO TRIFLE WITH WHATEVER THE NEW DIET COKE ADS EVENTUALLY LOOK LIKE ONE THING IS CLEAR SAYS MR PIRKO OF BEVMART THE COMMERCIALS SHOULD BE LINEAR MEANING THEY SHOULD TELL A STORY HAVE A BEGINNING MIDDLE AND END THAT GRABS THE VIEWER'S ATTENTION DAN REID WHO PARACHUTED IN TO HELP REVIVE MCCAFFREY & MCCALL A LITTLE MORE THAN A YEAR AGO IS LEAVING HIS POST AS THE AGENCY'S PRESIDENT AND CHIEF OPERATING OFFICER THIS SUMMER THE AGENCY SAID IN A STATEMENT MCCAFFREY ONCE A MIDSIZE SHOP WITH MORE THAN 300 MILLION IN BILLINGS HAS BEEN BADLY HURT IN THE LAST 18 MONTHS OR SO BY THE LOSS OF ACCOUNTS FROM BACARDI TIFFANY AND MERCEDESBENZ WITH COMBINED ESTIMATED BILLINGS OF AT LEAST 120 MILLION LAST MARCH MR REID WHO WAS AN EXECUTIVE VICE PRESIDENT AT LEO BURNETT CO WAS BROUGHT ON BOARD AFTER A HUSHHUSH MANAGEMENT SHAKEUP THAT LEFT MR REID IN CONTROL OF THE AGENCY ALONG WITH MIKE ROBERTSON CHAIRMAN CHIEF EXECUTIVE OFFICER AND CREATIVE DIRECTOR MESSRS REID AND ROBERTSON COULDN'T BE REACHED TO COMMENT BUT THE PREPARED AGENCY STATEMENT SAID MR REID'S DEPARTURE STEMMED FROM A FUNDAMENTAL DISAGREEMENT WITH MR ROBERTSON OVER HOW TO REBUILD THE AGENCY MR REID WANTED TO PURSUE BIG PACKAGEDGOODS CLIENTS THE STATEMENT SAID WHILE MR ROBERTSON WAS SAID TO FAVOR COURTING OTHER POTENTIAL ACCOUNTS PARTICULARLY THOSE THAT OFFER THE MOST CREATIVE POTENTIAL CLOROX CO REARRANGED AD ASSIGNMENTS FOR ITS HOUSEHOLDPRODUCTS BRANDS BETWEEN ITS TWO AGENCIES FOOTE CONE & BELDING CHICAGO AND THE SAN FRANCISCO OFFICE OF YOUNG & RUBICAM FOOTE CONE WON THE CLOROX CLEANUP AND SOFT SCRUB CLEANSER ACCOUNTS FORMERLY AT DDB NEEDHAM THE AGENCY ALSO WON THE PINESOL CLEANER ACCOUNT WHICH HAD BEEN AT YOUNG & RUBICAM Y&R WON THE COMBAT INSECTICIDE KINGSFORD AND MATCH LIGHT CHARCOAL AND LIQUIDPLUMR ACCOUNTS PREVIOUSLY AT DDB IN ADDITION CLOROX DESIGNATED Y&R AS THE LEAD AGENCY FOR INTERNATIONAL ASSIGNMENTS THE MOVES COME SIX WEEKS AFTER CLOROX FIRED THE CHICAGO OFFICE OF OMNICOM GROUP'S DDB NEEDHAM FROM ITS AGENCY ROSTER AFTER THE AGENCY ACCEPTED A 40 MILLION ASSIGNMENT FROM A CLOROX RIVAL SC JOHNSON & SON COMBINED BILLINGS ON THE FORMER DDB BRANDS IS ESTIMATED AT 30 MILLION ACCOUNTS ELECTRONIC DATA SYSTEMS THE COMPUTER SERVICES UNIT OF GENERAL MOTORS CORP FIRED THE HOUSTON OFFICE OF WPP GROUP'S OGILVY & MATHER FROM ITS ESTIMATED 10 MILLION AD ACCOUNT AND AWARDED IT TO THE NEW YORK SHOP GOLDSMITH/JEFFREY AN EDS SPOKESMAN SAID HOWEVER THAT IT WAS RETAINING OGILVY ON A CONFIDENTIAL ASSIGNMENT ADOLPH COORS MOVED TS FLAGSHIP COORS ACCOUNT FROM GSD&M OF AUSTIN TEXAS TO THE SAN FRANCISCO OFFICE OF FOOTE CONE & BELDING GSD&M CONTINUES TO HANDLE THE COORS DRY AND SPANISHLANGUAGE COORS LIGHT ACCOUNTS BILLINGS FOR THE ACCOUNT MOST ACTIVE ON RADIO COULDN'T BE DETERMINED 9305280195 930518 LEISURE & ARTS BOOKSHELF SAD STORY OF GAYS IN MILITARY BY JOHN LEHMAN ON MARCH 14 1778 GEORGE WASHINGTON PERSONALLY ORDERED LT GF ENSLIN DRUMMED OUT OF VALLEY FORGE WITH ABHORRENCE AND DETESTATION AFTER HE WAS FOUND GUILTY OF SODOMY FROM THAT DAY ON SUCH ACTIVITY HAS NEVER BEEN TOLERATED IN THE MILITARY WHILE THE SEVERITY OF ENFORCEMENT AND PUNISHMENT HAS VARIED THE EMPHASIS WAS ALWAYS ON BEHAVIOR NOT PREFERENCE OR INCLINATION THAT POLICY WAS CHANGED BY THE CARTER ADMINISTRATION THE NATURE OF THE PRESENT TEMPEST OVER GAYS IN THE MILITARY SPRINGS FROM TWO ORWELLIAN INITIATIVES BY DEMOCRATS IN THE EARLY 1980S THE FIRST OF THESE WAS DEPARTMENT OF DEFENSE DIRECTIVE 133213 PUSHED THROUGH BY MILITARY HOMOPHOBES IN THE LAST DAYS OF THE CARTER PRESIDENCY FOR THE FIRST TIME THE MERE PROPENSITY FOR HOMOSEXUALITY WITHOUT ANY ACTIVITY BECAME GROUNDS FOR MANDATORY EXPULSION FROM MILITARY SERVICE THE SECOND CAUSE WAS THE PASSAGE BY CONGRESSIONAL DEMOCRATS OF THE INDEPENDENT INSPECTOR GENERAL ACT WHICH ESTABLISHED A NEW GESTAPOSTYLE PROGRAM CALLED THE WASTEFRAUDABUSE HOTLINE WITH THIS INSTITUTIONALIZED ANONYMOUSINFORMANT SYSTEM THE PENTAGON BEGAN AN ERA OF WITCH HUNTING DON'T LIKE YOUR BOSS PUT HER THROUGH THE WRINGER WITH AN ANONYMOUS CALL SAYING SHE IS GAY MOST OF RANDY SHILTS'S CONDUCT UNBECOMING GAYS AND LESBIANS IN THE US MILITARY ST MARTIN'S 784 PAGES 2795 IS A COMPENDIUM OF SCORES AND SCORES OF SUCH CASES THE PATTERN IS ENDLESSLY REPETITIOUS THERE ARE MANY SAD AND TRAGIC STORIES DESCRIBED HERE THOUGH MR SHILTS LOSES SIGHT OF THE FACT THAT APART FROM THE DAMAGE SPECIFICALLY CAUSED BY THE STUPID CARTER DIRECTIVE THE SUFFERING IS NOT RESERVED FOR GAYS BUT VISITED EQUALLY UPON ALL THOSE UNJUSTLY ACCUSED OF ANYTHING BY INFORMANTS IN THE MINDLESS BUREAUCRATIC INVESTIGATIVE AND PROSECUTORIAL SYSTEM THAT HAS BEEN CREATED IN WASHINGTON IT IS BUT ANOTHER MANIFESTATION OF THE CRIMINALIZATION OF THE POLITICAL PROCESS CARRIED OUT BY CONGRESS IN THE '80S AMONG MY OWN DIRTY LITTLE SECRETS IS A PROPENSITY TO START BOOKS IN THE BACK GOING STRAIGHT TO THE INDEX IN THE HOPE OR FEAR OF FINDING MY NAME THIS GOT ME OFF TO A BAD START WITH MR SHILTS BECAUSE THE OFFICIAL ACTIONS HE ASCRIBES TO ME ARE WRONG I STRONGLY OPPOSED THE CARTER POLICY I INHERITED AND INTERVENED TO CHANGE ITS IMPLEMENTATION THERE HAVE BEEN MANY GAY MEN AND WOMEN WHO HAVE SERVED BRILLIANTLY AND BEHAVED IMPECCABLY I JUDGED INDIVIDUALS ON PERFORMANCE AND BEHAVIOR NOT THEIR PREFERENCES MAYBE MR SHILTS SHOULD HAVE CALLED ME UP SINCE CONDUCT UNBECOMING INCLUDES MORE THAN 1000 INTERVIEWS MANY INVOLVE ANONYMOUS SOURCES AND GIFTED FABULISTS MR SHILTS IS NOT RELUCTANT TO ACCEPT EXAGGERATED STORIES IN HIS MISSION TO INFLATE THE HOMOSEXUAL PRESENCE IN THE MILITARY HE ACCEPTS AS FACT ONE MYTHOLOGIST'S STORY ABOUT GAY DISCOS ON BOARD AIRCRAFT CARRIERS I SOMEHOW MISSED THESE IN 25 YEARS OF SERVICE ON CARRIERS HE TELLS US THAT SO MANY DOCTORS AND MEDICS ARE GAY THAT THE MILITARY WOULD HAVE TO CLOSE DOWN ITS MEDICAL CENTERS IF THEY WERE THROWN OUT BUT MR SHILTS REALLY STARTS HALLUCINATING WHEN HE DESCRIBES VIETNAM AS A KIND OF APOCALYPSE NOW IN DRAG WITH ALL OF THE STANDARD LEFTWING CLICHES ACCORDING TO HIM WHEN THEY WERE NOT BUSY MACHINEGUNNING CHILDREN MANY SOLDIERS SPENT THEIR TIME CROSSDRESSING DANCING IN GAY BARS AND HAVING SEX WITH EACH OTHER HIS LOATHING OF THE MILITARY AND HIS GENUINE IGNORANCE OF ITS WAYS EXEMPLIFY THE SCHIZOPHRENIA OF THE RADICAL GAY MOVEMENT WHY SO MUCH EFFORT SEEKING RIGHTS IN AN INSTITUTION THEY ABHOR SCATTERED AMONG THE ENDLESS CASE STUDIES AND HYSTERICAL ATTACKS IN THIS LARGELY UNEDITED COMPILATION ARE SOME INTERESTING STORIES AND A FEW GOOD POINTS MR SHILTS'S ACCURATE DESCRIPTION OF THE SHAMEFUL HANDLING BY THE NAVY OF THE INVESTIGATION INTO THE TRAGIC EXPLOSION ABOARD THE USS IOWA THAT KILLED 47 SAILORS IS THE BEST AVAILABLE SO FAR THE CAUSE FOR THE BLAST WAS FAULTY GUNPOWDER NOT TWO YOUNG SAILORS WRAPPED IN AN ILLFATED ROMANCE THE INCIDENT DOES ILLUSTRATE THE EXTREME HOMOPHOBIA OF THE PENTAGON BUREAUCRACY AND ITS UNNATURAL LUST FOR HOMOSEXUAL INVESTIGATIONS INVESTIGATORS ENJOY SUCH CASES BECAUSE GAYS ARE NOT USUALLY CRIMINAL TYPES AND ARE EASY TO CATCH AND DISCHARGE SUCCESSFUL CASES ADD UP TO CAREER ADVANCEMENT FOR PROSECUTORS THE COMPROMISE SOLUTION TO THE CURRENT CONFRONTATION BETWEEN PRESIDENT CLINTON AND THE MILITARY ON THIS ISSUE IS OBVIOUS BIG BROTHER HAS NO BUSINESS REQUIRING PEOPLE TO DECLARE THEIR PERSONAL SEXUAL PREFERENCES ANY MORE THAN THEIR POLITICAL OR SPIRITUAL LEANINGS BUT PROMISCUITY IN UNIFORM OR IN A MILITARY ENVIRONMENT IS ABSOLUTELY UNACCEPTABLE AND THE EXISTING PROHIBITIONS AGAINST SUCH BEHAVIOR INCLUDING PDAS PUBLIC DISPLAYS OF AFFECTION SHOULD REMAIN ENFORCED WHATEVER LAWFUL PRIVATE ACTIVITIES SERVICE PEOPLE GET UP TO OFFDUTY ARE NOT THE GOVERNMENT'S BUSINESS THE WITCH HUNTS SHOULD CEASE MR SHILTS AND OTHER ZEALOTS OF COURSE WANT MUCH MORE THEY WANT NOTHING LESS THAN FULL APPROVAL FOR WHAT ADM THOMAS MOORER QUAINTLY DESCRIBES AS FILTHY DISEASERIDDEN PRACTICES I SUSPECT THAT THOSE WHO AGREE WITH ADM MOORER ARE LIKELY TO BE HELPED MUCH MORE BY CONDUCT UNBECOMING AND ITS ANTIMILITARY DIATRIBE THAN THOSE WHOSE CAUSE IT ADVOCATES MR LEHMAN WAS SECRETARY OF THE NAVY IN THE REAGAN ADMINISTRATION SEE RELATED LETTER LETTERS TO THE EDITOR WE'RE IN THE ARMY NOW AND WE WERE THEN WSJ MAY 28 1993 9305180049 YY93 MM05 9305280194 930528 WHO'S NEWS POGO PRODUCING CO POGO PRODUCING CO HOUSTON GERRIT W GONG WAS APPOINTED A DIRECTOR OF THIS OIL AND NATURAL GAS DEVELOPER PRODUCER AND EXPLORER MR GONG 39 YEARS OLD IS THE DIRECTOR OF ASIAN STUDIES FOR THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON HE SUCCEEDS POGO DIRECTOR WILLIAM FULLER WHO DIED LAST YEAR 9305280193 930528 INTERNATIONAL WORLD ECONOMY IF FREETRADE ACCORD FAILS THE IMPACT ON MEXICO COULD QUICKLY SPREAD NORTH BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON OPPONENTS OF THE FREETRADE PACT WITH MEXICO AND CANADA SAY IT WOULD SHIFT WEALTH FROM THE US TO SOUTH OF THE RIO GRANDE BUT THERE'S ANOTHER SIDE TO THE COIN WOULD THE US REALLY PROFIT IF THE NORTH AMERICAN FREE TRADE AGREEMENT FAILS AND MEXICO'S ECONOMIC REBOUND STALLS MOST ANALYSTS DON'T THINK SO THEY WARN THAT IF THE TRADE ACCORD IS KILLED AS IT MAY BE IT WOULD HAVE SUCH A GRAVE IMPACT ON MEXICO THAT ADVERSE REPERCUSSIONS WOULD SURGE NORTH AND THESE COULD PROVE FAR MORE COSTLY TO THE US THAN THE POTENTIAL SETBACKS THAT TRANSFIX SUCH OPPONENTS AS ROSS PEROT MANY EXPERTS SAY THE DEATH OF NAFTA WOULD BE A CASE OF TWO LOSSES AND ONE GAIN THE US WOULD LOSE THE FULL BENEFITS OF A THRIVING EXPORT MARKET GOOD FOR SALES OF 406 BILLION AND A 54 BILLION TRADE SURPLUS LAST YEAR AND PROJECTED TO EXCEED 10 YEARLY GROWTH IF NAFTA SUCCEEDS THE US COULD ALSO LOSE CORDIAL POLITICAL RELATIONS WITH MEXICO WHERE A TRADITIONAL ANTIYANKEE BIAS IS BEING ECLIPSED BY A NEW SENSE OF COMMON PROSPERITY RENEWED SOUR FEELINGS WOULD ALMOST CERTAINLY AFFECT OTHERS IN LATIN AMERICA WHAT THE US WOULD GAIN IS MORE POOR MEXICAN IMMIGRANTS ONE RECENT STUDY SAYS NAFTA'S DEMISE WOULD HAVE SUCH A DEVASTATING IMPACT ON THE MEXICAN ECONOMY THAT AT LEAST 500000 EXTRA MIGRANTS WOULD SNEAK NORTH EACH YEAR THROUGHOUT THE NEXT DECADE FOR THE US THE SOCIAL COSTS OF THAT WOULD BE ENORMOUS ALL THIS ILLUSTRATES THE FOLLY OF TRYING TO DRAW ECONOMIC FAULT LINES ALONG ANY FRONTIER AS THE WORLD BECOMES MORE AND MORE INTERDEPENDENT WHETHER IT PASSES OR FAILS NAFTA WILL HAVE SUCH MAJOR IMPACT ON THE MEXICAN ECONOMY THAT IT IN TURN MUST AFFECT THE US AND CANADA TOO INSULATION IS IMPOSSIBLE AND MOST ECONOMISTS AGREE THE BEST WAY TO HELP THE MOST PEOPLE IS TO APPROVE THE PACT THOUGH THEY CONCEDE THE IMPACT WILL BE UNEVEN AND APPROVAL WILL BRING PAIN TO SOME TO UNDERSTAND THIS FIRST CONSIDER NAFTA'S IMPORTANCE TO MEXICO ITS ECONOMY NOWADAYS IS A BIT FRAGILE WITH HUGE TRADE AND PAYMENTS DEFICITS SUSTAINED BY INFLOWS OF FOREIGN CAPITAL MOST OF THAT IS NERVOUS PORTFOLIO MONEY LURED BY 20 INTEREST RATES AND A BOOMING STOCK MARKET MUCH OF IT READY TO FLEE IF CONFIDENCE WANES PROBABLY LESS THAN A THIRD IS TIED DOWN IN SUCH THINGS AS NEW FACTORIES THE WEAK US MARKET AND MEXICO'S TIGHTMONEY ANTIINFLATION POLICIES HAVE SLOWED ECONOMIC GROWTH TO 2 AFTER YEARS OF RAPID EXPANSION IN BUT THIS PAUSE MAY BE TEMPORARY A RUSH OF FIXED INVESTMENT IS EXPECTED ONCE NAFTA IS APPROVED PUSHING MEXICO FURTHER ALONG THE PATH OF ECONOMIC REFORM THERE'S A LOT OF INVESTMENT MONEY ON THE FRINGES WAITING TO GO IN SAYS JORGE MARISCAL WHO MONITORS MEXICO FOR GOLDMAN SACHS & CO IN NEW YORK HE LISTS RETAILING CONSTRUCTION VENTURES AND ELECTRONICS MANUFACTURING AMONG THE LEADING EXAMPLES CIEMEXWEFA AN ECONOMIC FORECASTING AGENCY IN PHILADELPHIA PUTS NUMBERS TO THIS OVER THE NEXT DECADE IT FIGURES NAFTA WILL BRING MEXICO AN EXTRA 3 BILLION OF INVESTMENT YEARLY RAISING ITS ECONOMIC GROWTH RATE TO 54 WITHOUT NAFTA THESE FORECASTERS AND OTHERS FIGURE MEXICO'S GROWTH IS SUBSTANTIALLY SLOWER MOREOVER CIEMEXWEFA BELIEVES HALF THE TOTAL FOREIGN INVESTMENT WILL GO TO EXPORT INDUSTRIES TARGETED FIRST AT THE US WITH PERHAPS 20 TO PRODUCE THINGS THAT MEXICO NOW IMPORTS AGAIN MOSTLY FROM AMERICA BUT AMERICANS SHOULDN'T WORRY ABOUT LOSING MARKETS SAYS MAURO LEOS OF CIEMEXWEFA HE FIGURES US EXPORTS WILL EXPAND 10 TO 15 A YEAR IN THE NEAR TERM ANYWAY AND BY A HEALTHY 7 TO 10 RATE A DECADE FROM NOW MEXICO'S NEED FOR US PRODUCTS WILL GROW FASTER THAN ITS ECONOMY EVEN IF THE MIX CHANGES WITHOUT THE TRADE PACT ECONOMISTS IN BOTH COUNTRIES WARN THAT NEED WILL BE LESS GROWTH WILL LAG BECAUSE NAFTA IS CRUCIAL TO THE LONGTERM CREDIBILITY OF OUR ECONOMIC REFORM SAYS LUIS RUBIOS OF CIDAC A MEXICO CITY RESEARCH AGENCY LIKE OTHERS HE WARNS THAT SLOWER GROWTH MEANS FEWER JOBS AND EVENTUALLY MORE ILLEGAL MIGRATION TO THE US AND IT COULD BRING MORE NATIONALIST AND PROTECTIONIST ECONOMIC POLICIES RETURNING AN ANTIAMERICAN TINGE TO POLITICS WHAT NAFTA REALLY MEANS FOR MEXICO IS SOCIAL STABILITY AND SUSTAINED GROWTH SAYS MR LEOS AND BOTH ARE CRUCIAL TO THE US 9305280192 930528 WHO'S NEWS KEYCORP KEYCORP ALBANY NY KENNETH M CURTIS 62 YEARS OLD PRESIDENT OF THE MAINE MARITIME ACADEMY AND A FORMER MAINE GOVERNOR WAS ELECTED A DIRECTOR ON THE 18MEMBER BOARD OF THIS BANK HOLDING COMPANY SUCCEEDING A MEMBER WHO RETIRED 9305280191 930528 SOCIETE GENERALE HEAD SAYS BANK CAN KEEP PROFIT STEADY IN '93 PARIS FRENCH RETAIL BANK SOCIETE GENERALE IS CAPABLE OF KEEPING PROFIT STEADY THIS YEAR DESPITE SLUMPING ECONOMIC ACTIVITY IN FRANCE CHAIRMAN MARC VIENOT TOLD SHAREHOLDERS THANKS TO OUR UNIVERSAL CHARACTER AND OUR BROAD GEOGRAPHICAL SPREAD WE HAVE THE MEANS TO RIDE OUT A BAD PERIOD MR VIENOT SAID HE WARNED HOWEVER THAT HIS OUTLOOK ASSUMES A CONTINUATION OF THE FAVORABLE PERFORMANCE OF THE BANK'S FINANCIAL MARKET ACTIVITIES THAT PERFORMANCE IS OFFSETTING POOR RESULTS IN ITS CLASSIC LENDING BUSINESS MR VIENOT WAS PESSIMISTIC ABOUT PROSPECTS FOR AN ECONOMIC TURNAROUND DOMESTICALLY IN 1993 ALTHOUGH HE NOTED THAT THE CONTINUING DECLINE IN INTEREST RATES WAS CLEARLY BENEFITING THE BANKING SECTOR BY THE END OF THE YEAR HE SAID I SEE FRENCH INTEREST RATES AT ABOUT 5 TO 6 HE ALSO SAID SOCIETE GENERALE MAY CHOOSE TO INCREASE ITS STAKES IN CHEMICAL AND PHARMACEUTICAL GROUP RHONEROULENC SA AND INSURANCE GROUP ASSURANCES GENERALES DE FRANCE DURING THE EVENTUAL PRIVATIZATION OF THOSE GROUPS SOCIETE GENERALE OWNS BETWEEN 2 AND 3 OF BOTH COMPANIES MR VIENOT ADDED THAT HE HOPED THE BANK WOULD PLAY A LEADING ROLE AS AN ADVISER AND A MARKET PARTICIPANT IN THE PRIVATIZATION PROCESS ALTHOUGH HE CAUTIONED THAT THERE WILL BE STIFF COMPETITION AMONG LEADING INVESTMENT BANKS COMMENTING ON ACTIVITY DURING THE FIRST FOUR MONTHS OF THE YEAR HE SAID DOMESTIC LOAN VOLUME WAS UP 13 FROM THE YEAREARLIER PERIOD HOWEVER THIS REPRESENTS A SLOWDOWN FROM THE 94 INCREASE IN THE FIRST FOUR MONTHS OF 1992 MR VIENOT SAID CORPORATE LOAN VOLUME ROSE 38 SLOWING FROM 54 IN THE YEAREARLIER PERIOD CUSTOMER DEPOSITS WERE UP 61 ALTHOUGH DEMAND DEPOSITS WERE DOWN 1 AND TERM DEPOSITS ROSE 8 ON THE COMMISSIONS SIDE EXCLUDING REALESTATE SECTOR ACTIVITIES INCOME WAS UP 7 SLOWING FROM THE YEAREARLIER 12 RISE COMMISSIONS FROM THE GROUP'S LIFE INSURANCE UNIT WERE UP 10 HE ADDED HE SAID THE PROGRESSION IN FINANCIAL MARKET ACTIVITY WAS LED BY OPTIONS AND FOREIGN EXCHANGE ACTIVITIES NOTABLY IN THE GROUP'S FOREIGN BRANCHES HE OBSERVED THAT BOTH THE NEW YORK AND TOKYO OFFICES CONTINUED TO PRODUCE GOOD RESULTS IN FOREIGN EXCHANGE ACTIVITIES 9305280190 930528 THYSSEN HAS FISCAL 1STHALF LOSS HANOVER GERMANY GERMAN STEEL AND ENGINEERING GROUP THYSSEN AG POSTED A PRETAX LOSS OF 515 MILLION MARKS 3163 MILLION IN THE FIRST SIX MONTHS OF ITS FISCAL YEAR A SHARP REVERSAL FROM THE PRETAX PROFIT OF 376 MILLION MARKS IT POSTED IN THE YEAREARLIER PERIOD SALES FELL 89 TO 1644 BILLION MARKS FROM 1804 BILLION MARKS 9305280189 930528 WHO'S NEWS CONAGRA INC CONAGRA INC OMAHA NEB DONALD SLOTKIN WAS NAMED TO THE VACANT POST OF PRESIDENT AT CONAGRA MEAT PRODUCTS COS' FRESH PORK BUSINESS AND TO THE NEW POST OF EXECUTIVE VICE PRESIDENT OF THE FOOD COMPANY'S ARMOUR SWIFTECKRICH UNIT MR SLOTKIN 56 YEARS OLD WAS FORMERLY OWNER OF DONALD SLOTKIN INC A MEAT INDUSTRY CONSULTING FIRM 9305280188 930528 WHO'S NEWS TEXTRON INC TEXTRON INC PROVIDENCE RI THOMAS B WHEELER 56 YEARS OLD WAS NAMED A DIRECTOR OF THIS AEROSPACE COMMERCIAL PRODUCTS AND FINANCIAL SERVICES CONCERN HE SUCCEEDS JAMES R MARTIN 74 WHO RESIGNED TO SPEND MORE TIME WITH HIS FAMILY MR WHEELER IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MASSACHUSETTS MUTUAL LIFE INSURANCE CO 9305280187 930528 WHO'S NEWS CONNECTICUT ENERGY CORP CONNECTICUT ENERGY CORP BRIDGEPORT CONN SAMUEL M SUGDEN 51 YEARS OLD WAS NAMED A DIRECTOR OF THIS UTILITY COMPANY INCREASING THE BOARD'S SIZE TO 10 MEMBERS MR SUGDEN IS A PARTNER IN THE LAW FIRM OF LEBOEUF LAMB LEIBY & MCRAE IN NEW YORK 9305280186 930528 WHO'S NEWS ENGLISH CHINA CLAYS PLC ENGLISH CHINA CLAYS PLC LONDON JEREMY CROGGON 54YEAROLD PRESIDENT OF THE US INDUSTRIAL MINERALS BUSINESS BASED IN ATLANTA LEFT THE COMPANY AND HAS BEEN SUCCEEDED BY DENNIS L REDIKER 49 MR REDIKER WAS PRESIDENT OF THE COATED BOARD DIVISION AT MEAD CORP DAYTON OHIO ENGLISH CHINA CLAYS IS A PRODUCER OF KAOLIN AN IMPORTANT MINERAL USED IN THE MANUFACTURE OF PAPER 9305280185 930528 HONG KONG TELECOM POSTS 13 PROFIT RISE FOR LATEST FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL HONG KONG HONG KONG TELECOMMUNICATIONS LTD ANNOUNCED A 13 RISE IN PROFIT IN THE YEAR ENDED MARCH 31 AND EXECUTIVES PREDICTED A DOUBLEDIGIT GROWTH IN THE CURRENT YEAR BUT THE RESULTS OF THE COLONY'S MONOPOLY PROVIDER OF TRADITIONAL TELEPHONE SERVICES FELL AT THE LOW END OF MARKET FORECASTS CONTRARY TO PRIOR OPTIMISM THAT HAD PUSHED UP ITS SHARE PRICE IN RECENT SESSIONS IN REACTION HONG KONG TELECOM SHARES FELL TO 1180 HONG KONG DOLLARS US153 DOWN 10 HONG KONG CENTS THE GROWTH RATE WAS DAMPED BY A 20 LEAP IN OPERATING COSTS MAINLY ARISING FROM THE GROUP'S HIGHER DEPRECIATION CHARGES AND CAPITAL CONTRIBUTION TO RETIREMENT PLANS TELECOM 58 CONTROLLED BY THE BRITISHBASED CABLE & WIRELESS PLC SAID ITS PROFIT SWELLED TO HK643 BILLION US8321 MILLION FROM THE YEAREARLIER'S HK567 BILLION REVENUE CLIMBED AT A FASTER RATE OF 18 TO HK2164 BILLION FROM THE PREVIOUS HK1837 BILLION ON A PERSHARE BASIS EARNINGS GAINED 13 TO 577 CENTS FROM 509 CENTS ITS DIRECTORS RECOMMENDED HIKING ITS TOTAL DIVIDEND PAYOUT TO 434 CENTS FROM 38 CENTS 9305280184 930528 PHILADELPHIA ELECTRIC SEES QUARTERLY GAIN ON SOLID POWER SALES PHILADELPHIA PHILADELPHIA ELECTRIC CO BUOYED BY SOLID POWER SALES EXPECTS TO POST SECONDQUARTER NET INCOME IN THE RANGE OF 38 CENTS A SHARE AND AT LEAST 235 A SHARE FOR THE YEAR CHAIRMAN AND CHIEF EXECUTIVE JOSEPH F PAQUETTE JR SAID THE ELECTRIC AND GAS UTILITY WHICH WILL CHANGE ITS NAME TO PECO ENERGY NEXT YEAR POSTED NET OF 943 MILLION OR 35 CENTS A SHARE FOR THE YEARAGO SECOND QUARTER FOR THE YEAR THE COMPANY HAD NET OF 418 MILLION OR 190 A SHARE MR PAQUETTE SAID THE RISE IN EARNINGS IS DUE TO MORE NORMAL WEATHER CONDITIONS HE SAID LAST YEAR'S RESULTS WERE WAY OFF BECAUSE OF A MILD WINTER AND A COOL SUMMER THROUGH MIDMAY PHILADELPHIA ELECTRIC'S ELECTRIC POWER USAGE HAS INCREASED 2 AND GAS POWER USAGE HAS SOARED 13 OVER THE COMPARABLE YEARAGO PERIOD MR PAQUETTE SAID GAS SALES ROSE BECAUSE CORPORATE CUSTOMERS CONTINUE TO SWITCH FROM ELECTRIC POWER TO GAS REVENUE FOR THE SECOND QUARTER AND YEAR ALSO WILL SHOW A SIGNIFICANT GAIN FROM THE YEARAGO RESULTS IN 1992 PHILADELPHIA ELECTRIC HAD REVENUE OF 903 MILLION FOR THE QUARTER AND 39 BILLION FOR THE YEAR MR PAQUETTE SAID SUCH CONTINUING FINANCIAL IMPROVEMENTS COULD MEAN ANOTHER DIVIDEND INCREASE BY THE END OF THE YEAR HE WOULDN'T SAY HOW MUCH THE DIVIDEND COULD BE BOOSTED BUT ANALYSTS ESTIMATE THE DIVIDEND COULD BE RAISED 5 TO 10 LAST YEAR THE QUARTERLY PAYOUT WAS RAISED TO 35 CENTS FROM 325 CENTS IN 1990 PHILADELPHIA ELECTRIC WAS FORCED TO CUT ITS QUARTERLY DIVIDEND TO 30 CENTS FROM 55 CENTS AFTER PENNSYLVANIA REGULATORS ISSUED AN UNFAVORABLE RATE DECISION SINCE THEN THE COMPANY HAS RAISED THE QUARTERLY DIVIDEND EACH YEAR MY GOAL IS TO RESTORE THE DIVIDEND TO ITS FORMER LEVEL HE SAID MR PAQUETTE ALSO CREDITS COST CONTROLS AND IMPROVED CREDIT AND COLLECTION PROCEDURES FOR THE IMPROVED RESULTS THE COMPANY PLANS TO CUT 650 EMPLOYEES FROM ITS NUCLEAR DEPARTMENT OVER THE NEXT TWO YEARS WITH AN EARLY RETIREMENT PROGRAM AND THROUGH ATTRITION MR PAQUETTE SAID THE WORK FORCE REDUCTION SHOULD SAVE THE COMPANY ABOUT 35 MILLION ANNUALLY 9305280183 930528 TREASURY TO RAISE CASH IN 7 BILLION BILL SALE WASHINGTON THE TREASURY PLANS TO RAISE ALL NEW CASH WITH THE SALE WEDNESDAY OF ABOUT 7 BILLION IN 13DAY CASH MANAGEMENT BILLS THE OFFERING WILL BE MATURE ON JUNE 17 1993 THE CUSIP NUMBER FOR THE 13DAY BILLS IS 912794D50 NONCOMPETITIVE TENDERS FOR THE BILLS ARE NOT ACCEPTED COMPETITIVE TENDERS AVAILABLE IN MINIMUM 1000000 DENOMINATIONS MUST BE RECEIVED BY 1 PM EDT WEDNESDAY AT FEDERAL RESERVE BANKS OR BRANCHES 9305280182 930528 WHO'S NEWS COVENTRY CORP COVENTRY CORP NASHVILLE TENN DEAN M WEILAND 41 YEARS OLD VICE PRESIDENT OF CAREMARK INTERNATIONAL A HOMEHEALTHCARE COMPANY IN NORTHBROOK ILL WAS NAMED SENIOR VICE PRESIDENT A NEW POST AT THIS MANAGEDHEALTHCARE FIRM 9305280181 930528 ECONOMY INITIAL JOBLESS CLAIMS HELD STEADY AT 344000 IN MOST RECENT WEEK WASHINGTON INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE HELD STEADY AT 344000 IN THE WEEK ENDED MAY 22 THE LABOR DEPARTMENT SAID THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS A BETTER INDICATOR OF LABOR MARKET CONDITIONS FELL TO 339750 FROM 341250 THE WEEK BEFORE THE BIGGEST RISE IN CLAIMS DURING THE WEEK WAS IN MISSOURI STATE OFFICIALS ATTRIBUTED THE JUMP TO LAYOFFS IN THE CONSTRUCTION TRADE SERVICE AND APPAREL INDUSTRIES THE LARGEST DROP OCCURRED IN CALIFORNIA WHICH STATE OFFICIALS ATTRIBUTED TO FEWER LAYOFFS IN AGRICULTURE EXCEPT FOR STATE COUNTS THE FIGURES ARE ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9305280180 930528 KODAK UNVEILS NEW FUN SAVERS ROCHESTER NY EASTMAN KODAK CO SAID IT INTRODUCED SMALLER VERSIONS OF ITS SINGLEUSE FUN SAVER 35 CAMERA WITH AND WITHOUT FLASH THAT ARE ONEINCH THICK AND ABOUT THE SIZE OF A DECK OF CARDS THE CAMERA COSTS 995 WITHOUT FLASH AND 1795 WITH FLASH 9305280179 930528 FORD ANNOUNCES THIRD PRICE INCREASE ON '93 MODELS ECHOING CHRYSLER'S RISE BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO ANNOUNCED ITS THIRD PRICE INCREASE OF THE 1993 MODEL YEAR AND THE SECOND IN JUST FOUR MONTHS PUTTING THE BASE PRICES OF ITS HOTTEST MODELS AS MUCH AS 360 MORE THAN THEIR INTRODUCTORY PRICES LAST FALL FORD BECOMES THE SECOND AMONG DETROIT'S BIG THREE AFTER CHRYSLER CORP TO RAISE PRICES THREE TIMES IN THE CURRENT MODEL YEAR WHICH BEGAN LAST OCTOBER GENERAL MOTORS CORP HAS RAISED PRICES TWICE DURING THE SAME TIME SPAN FORD SAID ITS MOVE YESTERDAY PUTS ITS STICKER PRICES UP AN AVERAGE OF 11 FOR CARS SINCE THE BEGINNING OF THE CURRENT MODEL YEAR AND 36 FOR LIGHT TRUCKS BUT WHEN COMPARED WITH MOST OF ITS INTRODUCTORY PRICES ON 1992 MODEL CARS AND TRUCKS PRICES HAVE RISEN AN AVERAGE OF 475 THIS EXCLUDES THE FORD THUNDERBIRD AND MERCURY COUGAR BOTH OF WHICH HAD PRICE CUTS TO REPOSITION THEM IN THE MARKET THE BIG THREE ANALYSTS SAY APPEAR TO BE TAKING ADVANTAGE OF MUCH STEEPER PRICE INCREASES SOME 10 DURING THE PAST YEAR BY JAPANESE AUTO MAKERS TO COMPENSATE FOR THE SHARP RISE IN THE VALUE OF THE YEN IN ADDITION THE JAPANESE APPEAR TO BE RESPONDING TO THE TOUGH TALK ON TRADE FROM THE CLINTON ADMINISTRATION DETROIT'S PRICE INCREASES COME AMID CONCERN ABOUT A RESURGENCE IN INFLATION THE CONSUMER PRICE INDEX HAS CLIMBED AT A 43 ANNUAL RATE SO FAR THIS YEAR AFTER RISING JUST 29 LAST YEAR NONETHELESS AUTO ANALYSTS SAY THE LATEST BIG THREE PRICE BOOSTS WILL HAVE VIRTUALLY NO IMPACT ON THEIR VEHICLE SALES THE ANALYSTS SAID JAPANESE VEHICLES ARE STILL PRICED AN AVERAGE 2300 HIGHER THAN RIVAL BIG THREE MODELS THAT'S MORE OF A PREMIUM THAN MANY CONSUMERS APPEAR WILLING TO PAY EVEN THOUGH JAPANESE VEHICLES RETAIN A SLIGHT EDGE IN QUALITY AUTO ANALYSTS SAY FOR EXAMPLE TOYOTA MOTOR CORP'S NEW T100 PICKUP TRUCK WAS RATED THE BEST FULLSIZE PICKUP TRUCK IN THE WIDELY WATCHED QUALITY SURVEY RELEASED YESTERDAY BY JD POWER & ASSOCIATES A CALIFORNIA CONSULTING FIRM BUT COMPETING BIG THREE PICKUP TRUCKS PRICED 2000 TO 3000 LESS THAN THE T100 CONTINUE TO OUTSELL THE HIGHERPRICED JAPANESE MODEL THE JAPANESE AUTO MAKERS HAVE RAISED AN ENORMOUS PRICE UMBRELLA IN THE MARKET SAID JOHN A CASESA WERTHEIM SCHRODER CO'S AUTO ANALYST DETROIT'S PRICES CAN GO QUITE A WAYS BEFORE IT BEGINS PRICING ITSELF OUT OF THE MARKET DESPITE THE INCREASES FORD'S US CARS AND LIGHT TRUCKS CONTINUE TO PROVIDE OUTSTANDING CUSTOMER VALUE SAID ROBERT L REWEY VICE PRESIDENT FOR SALES A FORD SPOKESMAN SAID THE COMPANY'S PRICE INCREASES WERE TAKEN TO OFFSET RISING MATERIAL AND PRODUCTION COSTS FORD HAS BEEN STRUGGLING TO BOOST ITS PROFITABILITY THIS YEAR DESPITE INCREASING ITS SHARE OF US CAR SALES A HEALTHY TWO PERCENTAGE POINTS AND OPERATING ITS NORTH AMERICAN FACTORIES AT 93 OF STRAIGHTTIME CAPACITY WHICH EXCLUDES OVERTIME IN THE FIRST QUARTER FORD STOCK FELL 25 CENTS YESTERDAY TO CLOSE AT 52375 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING EFFECTIVE TODAY THE NEW 1993 BASE PRICE ON FORD'S FOURDOOR EXPLORER XLT SPORT UTILITY VEHICLE IS 21560 THAT IS UP 11 OR 242 FROM THE INTRODUCTORY 1993 MODEL YEAR PRICE AND UP 57 OR 1159 FROM THE INTRODUCTORY 1992 PRICE THE BASE PRICE OF FORD'S LINCOLN TOWN CAR EXECUTIVE ROSE 11 OR 360 TO 34550 FROM THE START OF THE 1993 MODEL YEAR THAT PRICE IS UP 107 OR 3339 FROM 1992 AMONG THE SMALLEST PRICE INCREASES IS A 50 RISE IN THE FORD FESTIVA PRICE TO 6991 THERE WERE MODEST PRICE INCREASES ON THE FORD THUNDERBIRD LX AND MERCURY COUGAR XR7 BOTH RISING 06 OR 100 FROM 1993 INTRODUCTORY PRICES FORD HAD SLASHED THE PRICE OF BOTH MODELS BY AS MUCH 24 AT THE START OF THE 1993 MODEL YEAR 9305280178 930528 FINANCING BUSINESS SANTA CRUZ OPERATION INC SANTA CRUZ OPERATION INC SANTA CRUZ CALIF SAID IT MADE AN INITIAL PUBLIC OFFERING OF SIX MILLION COMMON SHARES AT 1250 EACH THE SOFTWARE COMPANY SAID 36 MILLION SHARES WERE OFFERED BY SANTA CRUZ OPERATION AND THE REST BY INDIVIDUAL SHAREHOLDERS THE OFFERING WAS MANAGED BY GOLDMAN SACHS & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP 9305280177 930528 INTERNATIONAL FLORENCE CAR BOMB THAT KILLS FIVE SEEN AS BID TO DESTABILIZE NATION BLAST SERIOUSLY DAMAGES FAMOUS UFFIZI GALLERY AND DESTROYS ARTWORK BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL FLORENCE ITALY ITALIAN AUTHORITIES SAY A BOMB THAT KILLED FIVE PEOPLE IN FLORENCE AND SERIOUSLY DAMAGED PARTS OF THE UFFIZI GALLERY MAY BE PART OF AN ATTEMPT TO DESTABILIZE THE COUNTRY AT A CRUCIAL TIME OF CHANGE A CAR BOMB ESTIMATED TO CONTAIN ABOUT 60 POUNDS OF EXPLOSIVES WAS SET OFF JUST AFTER 1 AM LOCAL TIME YESTERDAY ON A STREET NEAR THE UFFIZI KILLING FOUR MEMBERS OF A FAMILY AND ONE OTHER AND INJURING ALMOST 30 PEOPLE THE EXPLOSION DESTROYED AT LEAST THREE CARAVAGGIOSCHOOL PAINTINGS INSIDE ITALY'S MOST PRESTIGIOUS ART MUSEUM AND DAMAGED SOME 30 OTHER PAINTINGS AS WELL AS SEVERAL SCULPTURES LAWENFORCEMENT OFFICIALS SAID THEY HADN'T CONCLUSIVELY IDENTIFIED WHO SET THE BOMB BUT INTERIOR MINISTER NICOLO MANCINO SAID IT HAD THE SIGNS OF A MAFIATERRORIST ATTACK THE EXPLOSION CAME THREE WEEKS AFTER A SIMILAR POWERFUL CAR BOMB EXPLODED IN ROME INJURING 23 PEOPLE AND NARROWLY MISSING ITS PRESUMED TARGET AN OUTSPOKEN TV TALKSHOW HOST AS HE WAS LEAVING THE STUDIO INVESTIGATORS LINKED THE ROME ATTACK TO THE SICILIAN MAFIA SEEKING REVENGE FOR A MASSIVE STATE CRACKDOWN ON ORGANIZED CRIME INCLUDING THE RECENT ARRESTS OF THE ALLEGED TWO LEADING BOSSES LUCIANO VIOLANTE HEAD OF THE PARLIAMENTARY ANTIMAFIA COMMISSION SAID THE MAFIA IS THE ONLY ORGANIZED CRIMINAL POWER CAPABLE OF DOING THIS ATTACK MR VIOLANTE AND INTERIOR MINISTER MANCINO HAD PUBLICLY WARNED THAT ORGANIZED CRIME MIGHT STRIKE BACK FOLLOWING THE RECENT STATE CRACKDOWN THEY CAUTIONED THAT THE MAFIA OR OTHER CRIMINAL FORCES COULD TAKE ADVANTAGE OF THE DELICATE POLITICAL SITUATION IN ITALY WHERE A 15MONTH INVESTIGATION INTO ALLEGED LINKS BETWEEN POLITICIANS AND THE MAFIA HAS DAMAGED THE OLD ORDER MANY SAY A CLIMATE OF TERROR COULD SLOW POLITICAL CHANGE IN MOMENTS OF CHANGE OR POSSIBLE CHANGE IN THIS COUNTRY THERE HAVE ALWAYS BEEN ATTACKS SAID LEONARDO GRASSI A BOLOGNA MAGISTRATE WHO HAS INVESTIGATED ITALIAN TERRORISM IN THE PAST BUT IT'S TOO EARLY TO DRAW CONCLUSIONS YET INVESTIGATORS SAY THE BOMB WAS PLANTED IN A SMALL TRUCK IN VIA DEI GEORGOFILI AROUND THE CORNER FROM THE UFFIZI A MAJOR TOURIST ATTRACTION AND NEXT TO THE ACCADEMIA DEI GEORGOFILI AN 18THCENTURY PALAZZO HOUSING CULTURAL ARCHIVES THE EXPLOSION CREATED A CRATER 10 FEET WIDE AND SIX FEET DEEP AND DESTROYED THE PALAZZO'S TOWER WHERE THE CUSTODIAN HER HUSBAND AND TWO CHILDREN WERE SLEEPING KILLING ALL FOUR ANNA MARIA PETRIOLI TOFANI DIRECTOR OF THE UFFIZI GALLERY SAID DAMAGE TO PAINTINGS WAS INCALCULABLE AND THE MUSEUM WOULD LIKELY BE CLOSED FOR MONTHS THE THREE PAINTINGS DESTROYED WERE GHERARDO DELLE NOTTI'S BIRTH OF CHRIST AND BARTOLOMEO MANFREDI'S LA BUONA VENTURA AND SCENE DI VITA DAMAGED PAINTINGS INCLUDED WORKS BY RUBENS VAN DYCK AND SEBASTIANO DEL PIOMBO THE LEGS WERE BLOWN OFF THE STATUE OF NIOBE IN A GROUP OF STATUES KNOWN AS NIOBE AND HER CHILDREN A ROMAN COPY OF A GREEK ORIGINAL THE MOTIVE FOR THE EXPLOSION WAS UNCLEAR AUTHORITIES SAID MAFIA ATTACKS USUALLY HAVE SPECIFIC TARGETS OR OCCUR ON SPECIFIC DATES TO SEND A MESSAGE SUCH WAS THE CASE WITH TALKSHOW HOST MAURIZIO COSTANZO WHO HAS MODERATED SEVERAL PROGRAMS ON THE MAFIA IN MAY 1992 COSA NOSTRA EMBEDDED A BOMB UNDER A STATE HIGHWAY IN SICILY THAT WAS DETONATED BY RADIO TRANSMITTER KILLING ITALY'S TOP ANTIMAFIA MAGISTRATE GIOVANNI FALCONE HIS WIFE AND SEVERAL BODYGUARDS BUT THE FLORENCE EXPLOSION DIDN'T APPEAR TO TARGET A SPECIFIC PERSON NOR DID IT COINCIDE WITH A PARTICULAR EVENT THIS IS A WILL TO PROVOKE INDISCRIMINATE TERROR THAT DISCOUNTS ANY SELECTED TARGET SAID FLORENCE MAGISTRATE PIERO LUIGI VIGNA 9305280176 930528 WHO'S NEWS ALBANK FINANCIAL CORP ALBANK FINANCIAL CORP ALBANY NY THIS CONCERN NAMED JOSEPH P RICHARDSON 53 YEARS OLD SENIOR VICE PRESIDENT AND SENIOR COMMERCIAL LENDING OFFICER OF THE COMMERCIAL LOAN DEPARTMENT AT ITS ALBANY SAVINGS BANK SUBSIDIARY THE POSITION IS NEWLY CREATED MR RICHARDSON WAS PREVIOUSLY A SENIOR VICE PRESIDENT AT FLEET BANK OF NEW YORK WHOSE PARENT IS FLEET FINANCIAL GROUP INC 9305280175 930528 JAPAN'S APRIL EXPORTS OF CARS TRUCKS BUSES FELL 16 FROM 1992 SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S EXPORTS OF CARS TRUCKS AND BUSES FELL 16 IN APRIL FROM THE YEAREARLIER MONTH TO 438017 UNITS THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID AUTO EXPORTS FELL INTO THE MINUS COLUMN AFTER A ONEMONTH REBOUND IN MARCH WHEN AUTO EXPORTS BOUNCED 61 AFTER A FIVEMONTH STREAK OF YEARONYEAR DECLINES THE MARCH GAIN REFLECTED A SURGE IN EXPORTS TO SUCH ASIAN NATIONS AS CHINA AND THAILAND WHERE ECONOMIES CONTINUE TO GROW DESPITE THE GENERAL SLUGGISHNESS IN MOST OF THE WORLD IN THE LATEST MONTH JAPANESE AUTO SHIPMENTS TO ASIAN NATIONS REMAINED BRISK THANKS TO THE RAPID EXPANSION OF ECONOMIES THERE BUT THE RELATIVELY SMALL NUMBER OF SHIPMENTS TO ASIAN NATIONS COULDN'T OFFSET POOR EXPORTS TO MAJOR DESTINATIONS IN THE EUROPEAN COMMUNITY WHERE JAPANESE INVENTORIES REMAIN HIGH LOOKING AHEAD A SPOKESMAN SAID AUTO EXPORTS ARE LIKELY TO FALL SHORT OF THEIR YEAREARLIER LEVELS BUT THE PACE OF THE FALL MIGHT BE A MODERATE 12 9305280174 930528 FINANCING BUSINESS GENERAL INSTRUMENT CORP GENERAL INSTRUMENT CORP CHICAGO SAID IT WILL INCREASE A PENDING DEBT OFFERING TO 450 MILLION FROM THE PREVIOUSLY ANNOUNCED 300 MILLION AS PART OF A RECAPITALIZATION THE MAKER OF EQUIPMENT FOR THE CABLE TELEVISION INDUSTRY SAID PROCEEDS FROM THE OFFERING OF JUNIOR CONVERTIBLE SUBORDINATED NOTES WOULD BE USED TO REPAY MUCH OF ITS 9 1/2 SUBORDINATED DEBENTURES OUTSTANDING THE COMPANY IS EXPECTED TO REALIZE 18 MILLION IN ANNUAL INTERESTCOST SAVINGS FROM THE INCREASED OFFERING GENERAL INSTRUMENT LAST WEEK ANNOUNCED ITS FILING OF A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE DEBT OFFERING IT ALSO SAID IT WAS TALKING WITH LENDERS ABOUT REDUCING THE INTEREST RATE ON ITS BANK DEBT COMPANY REPRESENTATIVES YESTERDAY DECLINED TO SAY WHY THE DEBT OFFERING WAS INCREASED 9305280173 930528 FINANCING BUSINESS LSB INDUSTRIES INC LSB INDUSTRIES INC OKLAHOMA CITY SAID IT COMPLETED THE OFFERING OF NEW 325 CONVERTIBLE EXCHANGEABLE PREFERRED STOCK SERIES 2 SELLING 920000 SHARES AT 50 A SHARE THE MANUFACTURING AND ENGINEERING COMPANY RECEIVED NET PROCEEDS OF 44275000 FROM THE OFFERING LAZARD FRERES & CO WAS THE UNDERWRITER 9305280172 930528 CANADIAN PRICE INDEX OTTAWA CANADA'S INDUSTRIAL PRODUCT PRICE INDEX IN APRIL WAS UNCHANGED FROM MARCH BUT UP 39 FROM A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE BIGGEST PRICE CHANGE IN APRIL WAS RECORDED BY LUMBER AND OTHER WOOD PRODUCTS DOWN 28 FROM MARCH BUT UP 32 FROM A YEAR EARLIER 9305280171 930528 INTERNATIONAL EC'S INFLATION RATE STEADY BRUSSELS THE EUROPEAN COMMUNITY'S AVERAGE ANNUAL INFLATION RATE WAS STEADY AT 34 IN APRIL THE EC STATISTICS AGENCY EUROSTAT SAID THE EC RATE COMPARED WITH 32 FOR THE US AND 07 FOR JAPAN INFLATION IN THE 12NATION TRADE BLOC HAS FALLEN STEADILY SINCE OCTOBER WHEN IT STOOD AT 39 9305280170 930528 GREEK COURT ORDERS SEIZURE OF SOME ASSETS OF ITALIAN CEMENT FIRM SPECIAL TO THE WALL STREET JOURNAL ATHENS A GREEK COURT HAS ORDERED THE SEIZURE OF 46 BILLION DRACHMAS 2087 MILLION OF ASSETS BELONGING TO THE ITALIAN CEMENT COMPANY CALCESTRUZZI SPA THE RULING UPHOLDS A GREEK CEMENT PRODUCER'S CLAIM THAT CALCESTRUZZI HAD BACKED DOWN FROM A PROMISE TO BUY IT LOCAL MEDIA REPORTED CALCESTRUZZI IS CONTROLLED BY THE ITALIAN INDUSTRIAL CONGLOMERATE FERRUZZI FINANZIARIA SPA CALCESTRUZZI CAN APPEAL THE ORDER STATEOWNED HALKIS CEMENT SAYS CALCESTRUZZI SIGNED A PRELIMINARY AGREEMENT TO BUY IT FOR 412 BILLION DRACHMAS THE ATHENS DAILY ELEFTHEROTYPIA SAID HALKIS' CREDITORS HAD ALSO ASKED FOR THE GREEK COMPANY TO BE LIQUIDATED CALCESTRUZZI'S ONLY ASSETS IN GREECE ARE A MAJORITY STAKE IN ANOTHER CEMENT PRODUCER AGET HERACLES IN MARCH 1992 CALCESTRUZZI IN A JOINT VENTURE WITH THE NATIONAL BANK OF GREECE PAID 124 BILLION DRACHMAS FOR A 70 STAKE IN THE STATERUN COMPANY THE REMAINING 30 OF AGET HERACLES IS OWNED BY THE STATE HOLDING COMPANY INDUSTRIAL RECONSTRUCTION ORGANIZATION A GREEK PARLIAMENTARY COMMITTEE IS CURRENTLY INVESTIGATING WHETHER THERE WERE ANY IRREGULARITIES IN THE GOVERNMENT'S PRIVATIZATION OF AGET HERACLES 9305280169 930528 BRITISH COLUMBIA PLANS 10YEAR BOND ISSUE VICTORIA BRITISH COLUMBIA THE PROVINCE OF BRITISH COLUMBIA SAID IT PLANS TO LAUNCH SOON A 125 BILLION CANADIAN DOLLAR US9901 MILLION 10YEAR GLOBAL BOND ISSUE THE BONDS TO BE DENOMINATED IN CANADIAN DOLLARS WILL BE SIMULTANEOUSLY DISTRIBUTED IN CANADA EUROPE ASIA AND THE US JOINT LEAD MANAGERS TO THE ISSUE ARE SCOTIAMCLEOD INC RBC DOMINION SECURITIES INC MERRILL LYNCH & CO AND IBJ INTERNATIONAL PLC THE GLOBAL NATURE OF THE BOND ISSUE IS INTENDED TO BROADEN THE PROVINCE'S INVESTOR BASE AND PROVIDE INCREASED FINANCING FLEXIBILITY SAID BRITISH COLUMBIA FINANCE MINISTER GLEN CLARK THE BONDS WILL BE THE FIRST OFFERED GLOBALLY BY BRITISH COLUMBIA THE BONDS WILL MEET ABOUT 25 OF THE PROVINCE'S PROJECTED C51 BILLION BORROWING REQUIREMENT FOR THE CURRENT FISCAL YEAR WHICH BEGAN APRIL 1 MR CLARK SAID BRITISH COLUMBIA'S LONGTERM DEBT IS RATED DOUBLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAPLUS BY STANDARD & POOR'S CORP 9305280168 930528 FINANCING BUSINESS SOUTHWESTERN PROPERTY TRUST INC SOUTHWESTERN PROPERTY TRUST INC SAID IN DALLAS THAT IT COMPLETED A PUBLIC OFFERING OF NINE MILLION COMMON SHARES AT 1350 EACH THE EQUITY REAL ESTATE INVESTMENT TRUST WHICH OWNS INTERESTS IN 13 APARTMENT PROPERTIES IN TEXAS AND OKLAHOMA SAID IT PLANS TO USE THE PROCEEDS TO ACQUIRE PROPERTIES NATWEST SECURITIES LTD KEMPER SECURITIES INC AND MCDONALD & CO SECURITIES WERE THE UNDERWRITERS FOR THE OFFERING 9305280167 930528 SUPERMARKETS GENERAL EXCHANGE WOODBRIDGE NJ SUPERMARKETS GENERAL CORP SAID IT BEGAN A PREVIOUSLY ANNOUNCED EXCHANGE OFFER FOR 200 MILLION OF PARENT SUPERMARKETS GENERAL HOLDINGS CORP'S 11 5/8 SUBORDINATED NOTES DUE 2002 FOR SIMILAR NOTES THAT INCLUDE PROPOSED AMENDMENTS TO THE INDENTURE THE OFFER INCLUDES A PAYMENT OF 5 FOR EACH 1000 OF DEBT TENDERED IN RETURN FOR CONSENT TO THE AMENDMENTS THE PRIVATELY HELD SUPERMARKET CHAIN SAID THE OFFER IS THE FIRST STEP IN A RECAPITALIZATION PLAN THAT INCLUDES A STOCK OFFERING AND A NEW NAME PATHMARK STORES INC THE OFFER EXPIRES JUNE 23 SUPERMARKETS GENERAL HOLDINGS IS A UNIT OF SMGII HOLDINGS CORP 9305280166 930528 MACY'S OFFERS REVISED FIVEYEAR PLAN WITH MORE JOB CUTS CHANGE IN BENEFITS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RH MACY & CO OUTLINED ITS REVISED BUSINESS PLAN CALLING FOR DEEPER STAFF CUTS MORE ECONOMICAL HEALTH CARE FOR EMPLOYEES AND ACCELERATED SPENDING CUTS AND RESTRUCTURING THE PLAN AN UPDATE OF THE COMPANY'S FIVEYEAR PROJECTION PRESENTED TO CREDITORS LAST NOVEMBER REMAINS CONSERVATIVE BUT ACCELERATED IMPLEMENTATION OF THE NOVEMBER PLAN WILL LIKELY IMPROVE OPERATING INCOME NEVERTHELESS MACY'S ALSO LOWERED ITS PROJECTED GROSS MARGINS BY ABOUT 1 FOR THE NEXT FIVE YEARS CITING INCREASED RETAIL COMPETITION AND A QUESTIONABLE ECONOMIC OUTLOOK FOR THAT TIME PERIOD THE PRIVATELY HELD COMPANY SAID THE NEW PLAN WILL INCREASE EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION BY 8 MILLION TO A TOTAL 463 MILLION IN FISCAL 1994 AND BY 37 MILLION TO 500 MILLION IN FISCAL 1995 MACY'S FISCAL YEAR ENDS JULY 31 FOR FISCAL YEAR 1998 THE FINAL YEAR IN THE PLAN EARNINGS BEFORE INTEREST TAX DEPRECIATION AND AMORTIZATION WILL INCREASE TO 817 MILLION UP FROM THE 811 MILLION PROJECTED IN THE PREVIOUS PLAN MACY WHICH HAS BEEN UNDER PROTECTION FROM CREDITORS IN US BANKRUPTCY COURT SINCE JANUARY 1992 COULDN'T PROJECT WHEN IT MIGHT EMERGE FROM THE CHAPTER 11 PROTECTION BUT MYRON E ULLMAN III CHAIRMAN AND CHIEF EXECUTIVE OFFICER NOTED THAT COMPETITOR FEDERATED DEPARTMENT STORES INC TOOK 14 MONTHS TO EMERGE FROM BANKRUPTCY COURT PROTECTION AFTER ANNOUNCING ITS OWN BUSINESS PLAN FEDERATED BASED IN CINCINNATI EMERGED FROM CHAPTER 11 IN EARLY 1992 AND IS NOW A PUBLICLY TRADED COMPANY AMONG SPECIFIC SAVINGS MACY'S SAID ITS STAFF REDUCTION PLANS WOULD LEAVE IT WITH ABOUT 60000 FULLTIME EMPLOYEES BY AUG 1 TO REACH THAT GOAL THE COMPANY PLANS TO ELIMINATE 4500 FULLTIME EQUIVALENT POSITIONS INSTEAD OF THE INITIALLY PROJECTED 1700 FULLTIME EQUIVALENT POSITIONS MOST OF THOSE 4500 CUTS HAVE ALREADY BEEN MADE MR ULLMAN SAID FURTHER GAINS WOULD COME FROM ACCELERATED REVAMPING OF THE SELLING PLAN WHICH WOULD CREATE 75 MILLION IN SAVINGS IN FISCAL 1994 UP FROM 33 MILLION IN THE PREVIOUS PLAN AND 89 MILLION IN FISCAL 1995 UP FROM 48 MILLION STEPPEDUP COST CUTTING WOULD CREATE ADDITIONAL SAVINGS OF 65 MILLION IN FISCAL 1994 UP FROM 20 MILLION AND 71 MILLION IN FISCAL 1995 UP FROM 42 MILLION FURTHER SAVINGS WILL COME FROM A REVAMPED CORPORATE MEDICAL PLAN THAT WILL ASK EMPLOYEES TO CONTRIBUTE MORE TO THEIR HEALTH CARE UNDER THE NEW PLAN EMPLOYEES WILL PAY 30 OF THEIR HEALTHCARE COSTS AND INSTEAD OF USING SEVERAL CARRIERS MACY'S SAID ITS HEALTHCARE INSURANCE WOULD BE COVERED BY METROPOLITAN LIFE INSURANCE CO SAVINGS UNDER THE REVISED PLAN WOULD BE 377 MILLION A 200000 GAIN FROM THE PREVIOUS PLAN IN FISCAL 1994 AND 565 MILLION A 56 MILLION GAIN IN FISCAL 1995 MACY'S ALSO PROJECTED THAT SAMESTORE SALES OR SALES AT STORES OPEN MORE THAN ONE YEAR WOULD IMPROVE TO A 55 RISE IN FISCAL 1994 COMPARED WITH A 11 GAIN EXPECTED IN FISCAL 1993 THE SAMESTORE FIGURES AN IMPORTANT BAROMETER OF RETAIL PERFORMANCE ARE EXPECTED TO IMPROVE TO SHOW A 66 RISE BY FISCAL 1998 TOTAL SALES ARE EXPECTED TO GROW TO 86 BILLION BY FISCAL 1998 UP FROM A PROJECTED 636 BILLION IN THE CURRENT FISCAL YEAR THE COMPANY SAID IT EXPECTS CAPITAL EXPENDITURES TO BE ABOUT 150 MILLION IN THE NEXT YEAR WITH MUCH OF THE SPENDING DEDICATED TO UPGRADING TECHNOLOGY IN THE PAST YEAR THE COMPANY HAS INVESTED 89 MILLION IN A POINTOFSALE DATA SYSTEM THAT WOULD PROVIDE NEXTDAY DATA FOR VIRTUALLY EVERY SALE IN THE COMPANY'S STORES IN THE HIGHYIELD BOND MARKET WHERE ABOUT 13 BILLION IN MACY DEBT TRADES INVESTORS PUSHED BONDS UP SLIGHTLY YESTERDAY BUT ACCORDING TO ANALYSTS BOND INVESTORS GAVE MACY'S REVISED PLAN A LUKEWARM RECEPTION ONE ISSUE MACY'S 145 SENIOR SUBORDINATED DEBENTURES MATURING IN 1998 TRADED AT 220 UP FROM 200 ON WEDNESDAY THE GAIN REPRESENTS AN INCREASE OF 20 FOR EACH 1000 OF FACE VALUE DEBT OUTSTANDING MACY'S HAS AN ADDITIONAL 24 BILLION IN SECURED DEBT AND ABOUT 850 MILLION IN TRADE CLAIMS OUTSTANDING 9305280165 930528 FINANCING BUSINESS GULF STATES UTILITIES CO GULF STATES UTILITIES CO BEAUMONT TEXAS COMPLETED NEGOTIATIONS TO OFFER SIX MILLION SHARES OF ITS 175 DIVIDEND PREFERENCE STOCK THE UNDERWRITERS ARE OFFERING THE STOCK AT 25 A SHARE TO YIELD 7 PROCEEDS FROM THE SALE TOGETHER WITH FUNDS FROM OTHER SOURCES WILL BE USED IN JULY TO REDEEM ABOUT 14 MILLION SHARES OF OUTSTANDING PREFERRED STOCK WITH DIVIDENDS RANGING FROM 1148 TO 1292 GULF STATES SAID IT WILL SAVE MORE THAN 6 MILLION A YEAR IN DIVIDENDS WITH THE NEW STOCK THE UTILITY SERVES CUSTOMERS ALONG THE GULF COAST BETWEEN HOUSTON AND NEW ORLEANS 9305280164 930528 SWEDISH IMPORT EXPORT PRICES STOCKHOLM SWEDISH IMPORT AND EXPORT PRICES WERE UP SLIGHTLY IN APRIL FROM A MONTH EARLIER MARKING THE SIXTH CONSECUTIVE MONTH OF INCREASES THE 04 RISE IN APRIL IMPORT PRICES REFLECTED HIGHER PRICES ON PETROLEUM PRODUCTS COAL IRON AND STEEL ACCORDING TO SCB THE NATIONAL STATISTICS AGENCY IN THE YEAR TO APRIL IMPORT PRICES HAVE RISEN 13 EXPORT PRICES MEANWHILE WERE UP 06 IN THE MONTH A SMALLER INCREASE THAN HAS BEEN THE CASE IN RECENT MONTHS 9305280163 930528 TEXAS UTILITIES ELECTRIC SHARES DALLAS TEXAS UTILITIES ELECTRIC CO SAID IT WOULD REDEEM TWO SERIES OF PREFERRED STOCK ITS FLEXIBLE ADJUSTABLE RATE PREFERRED STOCK BOTH SERIES A AND SERIES B WILL BE REDEEMED AT A PRICE OF 100 A SHARE AS OF JUNE 30 ACCRUED DIVIDENDS OF 18875 A SHARE WILL BE MADE ON OR BEFORE JULY 1 TO SHAREHOLDERS OF RECORD JUNE 15 ALL SHARES WILL BE REDEEMED TU ELECTRIC IS THE PRINCIPAL SUBSIDIARY OF TEXAS UTILITIES CO 9305280162 930528 WHO'S NEWS BROOKTREE CORP BROOKTREE CORP SAN DIEGO WILFRED J CORRIGAN WAS ELECTED A DIRECTOR OF THIS INTEGRATED CIRCUITS MAKER INCREASING THE BOARD TO EIGHT MR CORRIGAN 55 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LSI LOGIC CORP 9305280161 930528 SOME MAY SAY FOLKS HAVE TOUTED MUSIC OF THE SPHERES FOR CENTURIES BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL LOOK AT THE STARS CAN'T YOU HEAR THEM NOW THANKS TO FIORELLA TERENZI AN ASTROPHYSICIST AND MUSICIAN STARGAZERS CAN PEEK THROUGH A TELESCOPE GLANCE AT THE MILKY WAY AND LISTEN TO THE COSMOS FOR HER DISSERTATION DR TERENZI RECORDED ONTO A COMPUTER RADIOWAVE TRANSMISSIONS FROM A GALAXY 180 MILLION LIGHTYEARS FROM EARTH THE WAVES WHICH WERE THEN ELECTRONICALLY TRANSFERRED ONTO CDS OR TAPES EMERGED AS A GENRE OF NEW AGE MUSIC COMEDIAN DENNIS MILLER CALLS HER A CROSS BETWEEN CARL SAGAN AND MADONNA ONE CRITIC HAS DESCRIBED HER MUSIC AS EERIE MOODY SCIENCEFICTIONY STUFF DR TERENZI CONCEDES IT IS OFTEN VERY LOW FREQUENCY VERY DARK BUT SHE SAYS THAT SOMETIMES IT CAN BE VERY HIGH PITCH VERY BRIGHT EITHER WAY SHE SAYS GALACTIC SOUND DEEPENS PEOPLE'S ENJOYMENT OF SPACE INITIALLY DR TERENZI KEPT ACOUSTIC ASTRONOMY TO HERSELF BUT NOW SHE HAS TURNED PERFORMER AND EARTH PEOPLE ARE TUNING IN THE LOS ANGELESBASED PROFESSOR HAS PLAYED TO CALIFORNIA AUDIENCES AT A STAR TREK CONVENTION THE MORRISSON PLANETARIUM AND THE DIGITAL ART BEIN SHE HAS ALSO TAKEN HER ACT ON THE ROAD APPEARING ON TV AND IN CONCERT HALLS IN EUROPE AND JAPAN NOW FANS DON'T HAVE TO ATTEND HER SHOWS TO LISTEN TO THE STARS ISLAND RECORDS INC WHOSE POP LABEL FEATURES U2 AMONG ITS ROCKANDROLL ARTISTS RELEASED HER FIRST COMPACT DISK MUSIC FROM THE GALAXIES HER NEXT ALBUM MAY BE TITLED UNIVERSOUND OR GALACTECH DR TERENZI WHO HAS A DOCTORATE IN PHYSICS FROM THE UNIVERSITY OF MILAN SPECIALIZES IN ASTROPHYSICS AND RADIO ASTRONOMY SHE HAS ALSO STUDIED AT THE MILANO CONSERVATORIO DI MUSICA VERDI HER UNIQUE BACKGROUND MAKES HER A PIONEER IN WHAT SOME MUSICOLOGISTS TERM ACOUSTIC ASTRONOMY HER SHOWS COMBINE UNEDITED SOUNDS OF SPACE WITH HIGHTECH LASERS AND COEGESTYLE LECTURES ABOUT TURNING THE CONSTELLATION VIRGO INTO MUSIC SHE IS ALSO TRYING TO BREAK INTO MORE INTERACTIVE MEDIA HER PILOT CDROM PROJECT WOULD ALLOW PEOPLE TO WATCH AND HEAR THE COSMOS IN THEIR HOMES SHE HAS ALREADY PROVIDED THE SOUNDTRACK FOR A VIDEO AND SHE HOPES TO BREAK INTO SCIENCEFICTION THRILLER OR HORROR MOVIES BUT HER MUSIC SHE NOTES WOULD NOT FIT WITH COMEDY 9305280160 930528 JAPAN'S TOP 2 AIRLINES POST DISMAL EARNINGS FOR LATEST FISCAL YEAR TOKYO CITING THE ECONOMY'S WEAKNESS AND INTENSIVE PRICE COMPETITION AGAINST FOREIGN COUNTERPARTS JAPAN'S TOP TWO AIRLINES REPORTED DISMAL EARNINGS FOR THE FISCAL YEAR ENDED MARCH 31 JAPAN AIR LINES POSTED A PRETAX LOSS OF 5381 BILLION YEN 4962 MILLION A DEFICIT FOR THE SECOND FISCAL YEAR IN A ROW THE LOSS WAS CONSIDERABLY WIDER THAN THE YEAREARLIER PRETAX DEFICIT OF 604 BILLION YEN A SHARP FALL IN DEMAND FOR FIRSTCLASS AND BUSINESSCLASS INTERNATIONAL PASSENGER SEATS WITH WIDE MARKUPS AS WELL AS SLOW OVERSEASBOUND CARGO TRAFFIC HIT HARD ON JAL WHICH GOT 62 OF REVENUE FROM INTERNATIONAL SERVICE AS THE AIRLINE ANNOUNCED EARLIER IT PLANS TO SUSPEND ITS DIVIDEND FOR LAST FISCAL YEAR JAL'S SALES FELL 72 TO 103 TRILLION YEN FROM 111 TRILLION YEN MEANWHILE ALL NIPPON AIRWAYS MANAGED TO STAY IN THE BLACK REFLECTING THE AIRLINE'S HIGHER DEPENDENCY ON DOMESTIC SERVICE THAT REMAINED RELATIVELY STABLE BUT ITS PRETAX PROFIT WAS DOWN 29 TO 1587 BILLION YEN FROM 2244 BILLION YEN REFLECTING SLUGGISH REVENUE FROM INTERNATIONAL SERVICE AND A HEAVY INVESTMENT BURDEN THAT SQUEEZED OPERATING PROFIT BY 54 CITING THE SEVERITY OF BUSINESS CONDITIONS THE COMPANY LOWERED ITS DIVIDEND TO FOUR YEN A SHARE FROM FIVE YEN ANA'S SALES EDGED UP 12 TO 80835 BILLION YEN FROM 79915 BILLION YEN ATTRACTED TO THE RELATIVE STABILITY OF DOMESTIC OPERATION THAT ESCAPES COMPETITION WITH FOREIGN AIRLINES AND THE NEGATIVE IMPACT OF FOREIGN EXCHANGE VOLATILITY JAL IS FOCUSING ITS MIDTERM STRATEGY ON EXPANDING ITS DOMESTIC NETWORK THE AIRLINE OPENED SIX NEW PASSENGER ROUTES AT HOME LAST FISCAL YEAR ANA ALSO ADDED SIX BUT BOTH COMPANIES SAW DECLINES IN THE PROPORTION OF SEATS OCCUPIED IN DOMESTIC AS IN INTERNATIONAL SERVICES BY EXPANDING NETWORK AND INCREASING FREQUENCY WE INCREASED THE NUMBER OF SEATS BUT CUSTOMERS DIDN'T COME ALONG AN ANA SPOKESMAN SAID 9305280159 930528 MYERS INDUSTRIES OFFERS STOCK AKRON OHIO MYERS INDUSTRIES INC A MANUFACTURER OF PLASTIC AND METAL PRODUCTS SAID IT OFFERED 800000 NEW COMMON SHARES AT 23 A SHARE PROCEEDS WILL BE USED TO RETIRE DEBT IF AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 120000 SHARES ISN'T USED THE OFFERING WILL INCREASE MYERS' SHARES OUTSTANDING TO 11062817 THE COMPANY SAID THE LEAD UNDERWRITER IS SMITH BARNEY HARRIS UPHAM & CO 9305280158 930528 EASTERN GERMAN MANUFACTURING BONN EASTERN GERMAN MANUFACTURING ORDERS ROSE 19 IN MARCH FROM FEBRUARY LED BY A 24 SURGE IN DOMESTIC ORDERS THE BONN ECONOMICS MINISTRY REPORTED MANUFACTURING ORDERS WERE UP 23 FROM A YEAR EARLIER HOWEVER AFTER TWO MONTHS OF GAINS IN FEBRUARY AND MARCH INDUSTRIAL ORDERS IN EASTERN GERMANY WERE ONLY AT THEIR DECEMBER 1992 LEVEL THERE WAS A SHARP DROP IN ORDERS IN JANUARY THE DATA AREN'T ADJUSTED FOR INFLATION OR FOR SEASONAL FACTORS 9305280157 930528 BECHTEL PICKED TO BUILD PLANT SAN FRANCISCO BECHTEL GROUP INC SAID IT WAS SELECTED BY A UNIT OF PACIFICORP A PORTLAND ORE UTILITY TO BUILD A 250 MILLION COGENERATION PLANT IN CONTRA COSTA COUNTY CALIF BECHTEL SAID THE PLANT WILL INVOLVE ABOUT 300 CONSTRUCTION JOBS AND ABOUT 28 PERMANENT POSITIONS WHEN IT'S COMPLETED IN 1995 THE PLANT WILL GENERATE STEAM FOR C&H SUGAR CO'S PRODUCTION FACILITY AT CROCKETT AND 240 MEGAWATTS OF ELECTRICITY TO BE SOLD TO PACIFIC GAS & ELECTRIC CO 9305280156 930528 HELPWANTED ADS STAYED FLAT BUT REGIONS SHIFTED NEW YORK HELPWANTED ADVERTISING REMAINED FLAT IN APRIL THE CONFERENCE BOARD REPORTED THE GROUP'S HELPWANTED ADVERTISING INDEX WHICH USES 1967 AS A BASE YEAR OF 100 STOOD AT 96 IN APRIL THE SAME LEVEL AS IN MARCH A YEAR EARLIER THE INDEX WAS AT 90 THE FIGURES ARE BASED ON A SURVEY OF HELPWANTED ADVERTISING IN 51 MAJOR US NEWSPAPERS HELPWANTED AD VOLUME HAS PROVEN TO BE SENSITIVE TO LABORMARKET CONDITIONS ADVERTISING ROSE MODESTLY AT THE BEGINNING OF THE YEAR BUT AD VOLUME IS NOW VERY STATIC SAID CONFERENCE BOARD ECONOMIST KEN GOLDSTEIN CONSEQUENTLY THE GRADUATING CLASS OF 1993 IS FACING A TOUGHER LABOR MARKET THAN THOSE WHO GRADUATED IN THE MIDDLE OF THE RECESSION IN 1991 MR GOLDSTEIN SAID AD VOLUME GAINS IN MOST REGIONS WERE OFFSET BY DECREASES IN OTHERS EAST AND WEST NORTHCENTRAL EAST AND WEST SOUTHCENTRAL AND PACIFIC AREAS ALL HAD INCREASES IN VOLUME BUT VOLUME FELL IN NEW ENGLAND TO 68 FROM 69 THE MIDDLE ATLANTIC TO 42 FROM 45 AND THE ROCKY MOUNTAIN REGION TO 282 FROM 289 THE CONFERENCE BOARD IS A NONPROFIT BUSINESSSUPPORTED RESEARCH ORGANIZATION 9305280155 930528 LONRHO SALE OF OBSERVER CLEARED LONDON SECETARY OF STATE FOR TRADE AND INDUSTRY MICHAEL HESELTINE GAVE HIS CONSENT TO LONRHO PLC'S SALE OF THE OBSERVER A SUNDAY NEWSPAPER TO GUARDIAN & MANCHESTER EVENING NEWS PLC HE CITED THE OBSERVER'S PRECARIOUS FINANCIAL SITUATION FOR THE SWIFT APPROVAL THE GUARDIAN AGREED TO PAY LONRHO 27 MILLION 418 MILLION FOR THE OBSERVER INCLUDING A PAYMENT OF 135 MILLION IMMEDIATELY AND THE REMAINDER A YEAR LATER THE GUARDIAN WILL BE PROTECTED BY LONRHO AGAINST THE COST OF LAYOFFS UP TO A MAXIMUM OF 5 MILLION 9305280154 930528 BULL MAY CONSIDER EXPANDING TIES TO COMPUTER FIRMS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL THE AILING COMPUTER MAKER CIE DES MACHINES BULL UNDER MOUNTING PRESSURE FROM FRANCE'S NEW CONSERVATIVE GOVERNMENT TO STEM ITS LOSSES MAY CONSIDER EXPANDING ITS TIES WITH OTHER COMPUTER MAKERS IN AN INTERVIEW JACQUES LEBHAR BULL'S CHIEF FINANCIAL OFFICER SAYS MORE COSTSHARING AN INDUSTRY TERM FOR COLLABORATING WITH OTHER COMPANIES ON SPECIFIC PRODUCTS AND SERVICES IS ONE POSSIBLE OUTCOME OF A STRATEGY REVIEW UNDER WAY AT THE COMPANY MANY COMPANIES INVOLVED IN EUROPEAN PRODUCT DEVELOPMENT ARE LOOKING FOR SHARING MR LEBHAR SAYS WE ARE LOOKING AT OUR PRODUCTS TODAY AND FOR THE FUTURE TO SEE WHICH WE SHOULD HAVE THE EMPHASIS ON HE DECLINES TO DISCUSS WHICH PRODUCTS OR PARTNERS COULD BE INVOLVED STATECONTROLLED BULL LIKE MOST OTHER BIG COMPUTER MAKERS ALREADY HAS A BROAD PORTFOLIO OF COLLABORATIONS INCLUDING WITH INTERNATIONAL BUSINESS MACHINES CORP IN COMPUTER WORKSTATIONS AND NEC CORP OF JAPAN IN MAINFRAME TECHNOLOGY MR LEBHAR'S COMMENTS THROW SOME LIGHT ON ONE OF THE MOST TALKEDABOUT TOPICS IN THE FRENCH COMPUTER MARKET THESE DAYS WHITHER BULL THE COMPANY IN WHICH IBM HOLDS A 568 STAKE AND NEC A 443 HOLDING HAS LONG BEEN FRANCE'S OFFICIAL FLAGSHIP IN THE WORLD COMPUTER MARKET BUT ONE THAT HAS CHRONICALLY LEAKED RED INK NEVERTHELESS ON WEDNESDAY THE GOVERNMENT NAMED BULL AS AMONG THE STATE ENTERPRISES IT AIMS TO PRIVATIZE IN COMING YEARS THE COMPANY WHICH REPORTED A NET LOSS LAST YEAR OF 472 BILLION FRENCH FRANCS 861 MILLION WAS PUT ON POLITICAL PROBATION EARLIER THIS MONTH BY THE NEW CONSERVATIVE FRENCH INDUSTRY MINISTER GERARD LONGUET IN A STATEMENT MAY 11 MR LONGUET COMPLAINED THAT BULL HAS INCURRED LOSSES THREE YEARS IN SUCCESSION AND HAD COST THE FRENCH TAXPAYER 15 BILLION FRANCS OVER THE PAST DECADE HE CALLED IT ABSOLUTELY NECESSARY THAT THIS ENTERPRISE DEFINE A NEW STRATEGY THIS SUMMER SOFTENING THE BLOW SOMEWHAT MR LONGUET LATER EXPRESSED CONFIDENCE IN BULL'S CHIEF EXECUTIVE BERNARD PACHE QUASHING INDUSTRY RUMORS THAT THE SOCIALISTGOVERNMENT APPOINTEE WOULD BE REPLACED BULL DENIED WEDNESDAY A FRENCH NEWSPAPER REPORT THAT IT IS STUDYING A SALE OF ITS PERSONALCOMPUTER UNIT ZENITH DATA SYSTEMS INC THOUGH ZDS'S PROSPECTS ARE IMPROVING THE UNIT POSTED DEEP LOSSES SOON AFTER ITS ACQUISITION IN 1989 FROM ZENITH ELECTRONICS CORP OF THE US THE NEW GOVERNMENT IS ASKING BULL MR LEBHAR SAYS TO EXPLAIN WHAT ARE THE DIFFERENT WAYS TO RETURN TO PROFITABILITY THIS DOUBLECHECKING OF CORPORATE STRATEGY HE SAYS HAD BEEN GOING ON AT BULL EVEN BEFORE THE NEW GOVERNMENT CAME TO POWER HE SAYS IT DOESN'T ENTAIL RECONSIDERING BULL'S EXISTING LONGTERM ALLIANCES OR ITS SOCALLED DISTRIBUTED COMPUTING ARCHITECTURE THE BASIC TECHNICAL BLUEPRINT FOR HOW ALL ITS PRODUCTS WORK TOGETHER IT'S CLEAR THAT WE HAVE COMMITMENTS TO OUR CUSTOMERS TO CONTINUE INVESTING IN MAJOR PRODUCTS AND SERVICES HE SAYS BUT HAVING SAID THAT HE ADDS IT'S CLEAR THAT MANY PLANS HAVE TO BE DEVISED DOUBLECHECKED AND ADJUSTED FOR THE CURRENT SITUATION IN THE COMPUTER MARKET SPECIFICALLY WITH SOME MAJOR EUROPEAN ECONOMIES WEAKENING WE ARE REALLY IN A DIFFICULT BUSINESS BULL LIKE OTHERS IN THE INDUSTRY MAY RESPOND BY FORMING MORE AND MORE PARTNERSHIPS TO CUT COSTS TO SERVE THE CUSTOMER IT IS NECESSARY TO HAVE A VERY WIDE RANGE OF PRODUCTS BUT IN ORDER TO OFFER THIS WIDE RANGE WE HAVE PARTNERS BECAUSE YOU CAN'T BEAR THE COST ALONE MR LEBHAR SAYS 9305280153 930528 TRANSALTA TO CALL PREFERRED STOCK CALGARY ALBERTA TRANSALTA UTILITIES CORP SAID IT PLANS TO REDEEM JULY 1 TWO ISSUES OF PREFERRED SHARES TOTALING 106 MILLION CANADIAN DOLLARS US84 MILLION THE ELECTRIC UTILITY THE MAIN OPERATING UNIT OF TRANSALTA CORP IN CALGARY SAID THE ISSUES TO BE REDEEMED ARE THE 9 FIRST PREFERRED SHARES WITH A VALUE OF C94 MILLION AND THE 864 FIRST PREFERRED SHARES VALUED AT C12 MILLION THE COMPANY SAID IT WILL FINANCE THE REDEMPTIONS WITH PART OF THE PROCEEDS FROM A C200 MILLION ISSUE OF 835 SECURED DEBENTURES THAT IS EXPECTED TO CLOSE NEXT MONTH 9305280152 930528 LEISURE & ARTS BOOKSHELF BIG BEAR WITH BIG PROBLEMS BY JOHN SEIDENSTICKER IN THE LAST PANDA UNIVERSITY OF CHICAGO PRESS 291 PAGES 2495 GEORGE B SCHALLER DESCRIBES THE TENUOUS SURVIVAL STATUS OF ONE OF THE WORLD'S MOST POPULAR ANIMALS MR SCHALLER AUTHOR OF PREVIOUS BOOKS ON MOUNTAIN GORILLAS AND LIONS THINKS IT MAY BE ABOUT THE END OF THE LINE FOR THE BLACKANDWHITE CROWD PLEASERS AS THEIR HABITAT SHRINKS THEIR NUMBER DECREASES WITH MORE GIANT PANDAS KILLED EVERY YEAR OR DISPATCHED FROM THE WILD TO CAPTIVEBREEDING PROGRAMS ONLY SOME 1000 GIANT PANDAS ARE ALIVE TODAY IN THE WILD NEITHER ARE CONSERVATION PROGRAMS HELPING THE PANDA MR SCHALLER ARGUES DESCRIBING BUREAUCRACIES SPINNING BEYOND CONTROL TO THE DETRIMENT OF THESE SLEEPY GIANTS IN HIS VIEW THE CONSIDERABLE ATTENTION GIANT PANDAS HAVE BEEN GIVEN BY CONSERVATION ORGANIZATIONS ESPECIALLY THE WORLD WIDE FUND FOR NATURE FORMERLY WORLD WILDLIFE FUND INTERNATIONAL AND BY THE CHINESE AUTHORITIES FAILS TO ADDRESS THE PANDA'S CONSERVATION NEEDS AS A BAMBOOFEEDING SPECIALIST THE GIANT PANDA IS NEARLY ALONE AMONG MAMMALS ONCE MORE WIDELY DISTRIBUTED THESE 275POUNDERS NOW LIVE IN ONLY SIX TRACTS OF BAMBOO FOREST MOST IN TREMENDOUS MOUNTAINS WITH SOARING RIDGES DISSECTED BY DEEP NARROW VALLEYS WHOSE RUGGEDNESS NO LONGER ISOLATES THEM LOGGING CONTINUES IN PANDA HABITAT WITH ITS DESIRABLE STANDS OF FIR HEMLOCK SPRUCE AND PINE LOCAL VILLAGERS FARM THE VALLEY BOTTOMS AND LOWER SLOPES THEY SET SNARES GATHER MEDICINAL HERBS AND OTHER MINOR FOREST PRODUCTS SOMETIMES THEY KILL PANDAS FOR THE PELTS WHICH CAN FETCH 10000 AND MORE IN HONG KONG MR SCHALLER VIVIDLY DESCRIBES THE STRUGGLE AND TRIUMPHS OF CAPTURING RADIO TRACKING AND FOLLOWING THE ELUSIVE PANDA ON FOOT HE IS CLEARLY SMITTEN BY THE ANIMALS THIS IS NO DISPASSIONATE OBSERVER RECORDING HIS REACTION TO A PANDA HE FOUND STRANGLED IN A VILLAGER'S SNARE HE WRITES KNEELING BY THIS PANDA ITS DEATH SO EMPTY OF PURPOSE I WAS FILLED WITH RAGE AT THE UNINTENTIONAL KILLER AND AT THE OFFICIALS WHO TALKED AND TALKED WHILE EVEN MORE PANDAS SLIPPED INTO DARKNESS DAMN DAMN DAMN THEM ALL ATTENDING THE TRIAL OF THE KILLER OF ANOTHER PANDA ONE OF HIS RADIOCOLLARED ANIMALS HE CONCLUDES IT WAS NOT LENG ZHIZHONG WHO SHOULD BE IN JAIL BUT THE LOCAL OFFICIALS WHOSE NEGLIGENCE AND STOUT INDIFFERENCE HAD MADE THEM ACCESSORIES THIS IS STRONG STUFF AND GIVES A FLAVOR OF THE INTENSITY MR SCHALLER BRINGS TO HIS STORY AFTER NEARLY HALF A CENTURY'S LAPSE IN COMMUNICATION EAST AND WEST OFTEN CLASH IN THEIR UNITED EFFORTS TO CONSERVE THE PANDA PANDA CONSERVATION IN MR SCHALLER'S VIEW CAN BE ACHIEVED ONLY BY LEAVING THE ANIMALS UNDISTURBED IN PROTECTED REFUGES AND BY STOPPING ALL CAPTIVE PROPAGATION AND EXHIBITION PROGRAMS BUT THESE ACTIONS REQUIRE THE EVOLUTION OF A STRONG SUPPORT INFRASTRUCTURE AND ARE IN FACT QUITE DIFFICULT TO ACHIEVE I KNOW THAT IN NEPAL'S ROYAL CHITWAN PARK FOR INSTANCE EVEN 800 ARMY TROOPERS AND 20 YEARS OF CONSERVATION HAVEN'T STOPPED POACHERS FROM KILLING RHINOS AND TIGERS NOT SURPRISINGLY THE CHINESE AUTHORITIES PLACE GREAT EMPHASIS ON NATURAL AND ARTIFICIAL INSEMINATION TO PROVIDE ANIMALS FOR EXHIBITION AND FOR REPLENISHMENT IN THE WILD THEY HAVE ALSO INSISTED THAT FOREIGNERS WHO WANT TO EXHIBIT AND OR STUDY PANDAS PAY HANDSOMELY FOR THE PRIVILEGE AND PERHAPS THIS RANKLES MR SCHALLER WHOSE VOICE SOMETIMES ECHOES A BIT SHRILLY THROUGH THESE PAGES MR SCHALLER'S APPROACH UNDERESTIMATES THE SOCIAL DIMENSIONS OF CONSERVATION ACTION TO BRING THE INTENTIONAL SNARING OF PANDAS UNDER CONTROL THE DEMAND FOR PANDA SKINS HAS TO BE ELIMINATED TO STOP THE UNINTENTIONAL SNARING OF PANDAS LOCAL VILLAGERS HAVE TO HAVE ACCESS TO AFFORDABLE FOOD TO REPLACE THE TUFTED DEER THEY ARE TRYING TO CATCH MR SCHALLER MAY RAIL AGAINST CHINA'S PRACTICE OF TAKING GIANT PANDAS FROM THE WILD TO ESTABLISH BREEDING CENTERS BUT IT GIVES CHINA SOME BREATHING SPACE AND A SAFETY NET AS IT SEEKS TO ESTABLISH A LONGTERM INFRASTRUCTURE EVEN SO ONE CAN SHARE HIS REVULSION WITH RENTAPANDA PROGRAMS THAT REMOVE THE BEARS FROM THEIR NATURAL HABITATS FOR APPEARANCES IN SHORTTERM PROFITMAKING SHOWS AS HE WRITES TOWARD THE END OF HIS BOOK THE PANDA HAS NOT EVOLVED TO AMUSE HUMANKINDSHIRT MR SEIDENSTICKER CURATOR OF MAMMALS NATIONAL ZOOLOGICAL PARK SMITHSONIAN INSTITUTION HAS STUDIED THE CONSERVATION OF LARGE MAMMALS IN ASIA FOR 20 YEARS 9305280151 930528 WATCHMAKER MARKS TIME AS IT WAITS TO BUILD ELECTRIC CAR SMH'S CHAIRMAN IS SEEKING PARTNER FOR SWATCH AUTO BUYERS' ORDERS POURING IN BY MARGARET STUDER STAFF REPORTER OF THE WALL STREET JOURNAL BIEL SWITZERLAND SWISS INDUSTRIALIST NICOLAS G HAYEK LEAFS THROUGH A PILE OF LETTERS PLACING ORDERS FOR HIS FUTURE SWATCH CAR WE HAVE HAD 35000 UNSOLICITED ORDERS PEOPLE JUST WRITE IN SOME SEND BLANK CHECKS SAYS MR HAYEK CHAIRMAN AT SOCIETE SUISSE DE MICROELECTRONIQUE & D'HORLOGERIE SA OR SMH HE ADDS WE WON'T BE LETTING OUR CUSTOMERS DOWN SMH ONE OF THE WORLD'S GIANT WATCHMAKERS IS CURRENTLY SEEKING A PARTNER TO WORK ON THE SWATCH ELECTRIC CAR WHICH MR HAYEK SAYS SHOULD BE ON THE MARKET IN 1996 MR HAYEK HAS KEPT DETAILS OF THE PROJECT UNDER WRAPS BUT HE SAYS TALKS ARE UNDER WAY WITH TWO POSSIBLE MANUFACTURING PARTNERS AND THAT TWO EUROPEAN GOVERNMENTS ARE EAGER TO ATTRACT SWATCH CAR PRODUCTION MR HAYEK SAYS HE ENVISIONS THE SWATCH AUTO AS A SYMBOL OF EUROPEAN DYNAMISM JUST AS THE SWATCH BECAME THE WORLD'S BIGGESTSELLING WATCH ACHIEVING WHAT SEEMED LIKE THE IMPOSSIBLE BY MAKING ITS ASIAN COMPETITION SWEAT AT THE LOWPRICED END OF THE MARKET THE SWATCH CAR WILL BE MADE IN EUROPE AND POSSIBLY IN PARTS IN THE US PROVING SAYS MR HAYEK THAT EUROPEAN MANUFACTURERS DON'T HAVE TO RUN OFF TO CHEAPCOST PRODUCTION COUNTRIES BUT CAN WORK EFFICIENTLY AT HOME EUROPE HAS ENORMOUS RESOURCES AND TECHNICAL POWER WE JUST HAVE TO USE IT MR HAYEK SAYS FOR THAT COMPANIES HAVE TO BE FLEXIBLE AND INNOVATE ALL THE TIME AS AN ANIMATED MR HAYEK LEANS ACROSS THE TABLE FOUR OF THE WATCHES THE COMPANY MAKES EMERGE FROM HIS SHIRTSLEEVES A SWATCH TWO CONTRASTING OMEGAS AND AN 85000SWISSFRANC 58021 BLANCPAIN OTHER SMH BRANDS INCLUDE LONGINES RADO AND TISSOT SMH MAY KNOW WHAT TICKS BUT IT HASN'T BEEN INTO AUTOS BEFORE AND GERMANY'S VOLKSWAGEN AG ITS DESIGNATED PARTNER IN THE PROJECT PULLED OUT EARLIER THIS YEAR ACCORDING TO MR HAYEK VOLKSWAGEN AND SMH COULDN'T AGREE ON DETAILS OF THE CAR FINANCIAL ANALYSTS ARE MIXED ON THE VENTURE MICHEL KAMM AN ANALYST AT GENEVABASED UNION BANCAIRE PRIVEE BELIEVES THAT SMH SHOULD STICK TO WATCHES THERE ARE A LOT OF QUESTION MARKS HE SAYS BUT SWISS BANK CORP ANALYST RENE STIEFELMEIER SEES A REAL CHANCE FOR AN INNOVATIVE COMPANY IN THE AUTOMOBILE SECTOR ADDS SWISS VOLKSBANK ANALYST WOLFGANG STRUB WE HAVE TO TAKE HAYEK SERIOUSLY ON THIS THE QUESTION IS WHO WILL BE THE NEW PARTNER MARTIN NEWSON AN ANALYST FOR LONDONBASED GOLDMAN SACHS INTERNATIONAL LTD CONTENDS I DON'T EXPECT SMH TO DO THE ACTUAL MANUFACTURING SO THE CHOICE OF A PARTNER WILL BE VITAL IF A WHEEL FALLS OFF IT COULD HURT THE IMAGE OF THE SWATCH WATCH IN HIS AIRY OFFICE THE 64YEAROLD MR HAYEK APPEARS EXCITED BY THE CHALLENGE THE TRAINED MATHEMATICIAN WHO ONCE WORKED ON RISKPROBABILITY THEORIES FOR A ZURICH INSURANCE COMPANY CONFIDES I WAS BORN WITH A FEEL FOR EMOTIONAL CONSUMER PRODUCTS WATCHES CARS I COULDN'T DO ANYTHING WITH A VACUUM CLEANER MR HAYEK SAYS HIS GOAL IS FOR THE SWATCH CAR TO HAVE A POSSIBLE IMPACT LIKE THE VOLKSWAGEN BEETLE OR THE MODELT FORD REFLECTING THE SWATCH TIMEPIECE MR HAYEK SAYS HIS CAR WILL BE HIGH QUALITY LOW COST FUN AND PROVOCATIVE THREE SWATCH ENGINES ARE BEING TESTED ON SWISS ROADS MR HAYEK NOTES HE SEES INITIAL SALES OF 100000 UNITS TO 150000 UNITS RISING TO ONE MILLION UNITS WITHIN FIVE YEARS TO THOSE WHO DOUBT HIS VENTURE MR HAYEK REPLIES THE TROUBLE WITH EUROPEANS IS THAT THEY DON'T WANT TO TAKE RISKS EUROPEANS ARE THE MOST INSURED PEOPLE IN THE WORLD AS INNOVATIVE ASIAN NATIONS INCREASINGLY EXPAND MARKET SHARES IN THE REGION HE SAYS EUROPE IS DOZING HAPPILY IN THE SUN LOSING AN ENORMOUS AMOUNT OF TIME ON DISCUSSING WHAT EUROPE NEEDS SAYS MR HAYEK IS TO RETURN TO THE FANTASY OF CHILDHOOD TO THE PIONEER SPIRIT OF OUR GREATGREAT GRANDFATHERS TO DARE TO DREAM CERTAINLY MR HAYEK SEEMS TO KNOW HOW TO MAKE HIS DREAMS COME TRUE RELATIVELY PENNILESS IN 1957 MR HAYEK DREAMED OF OPENING HIS OWN ENGINEERING AND MANAGEMENT CONSULTANCY BUSINESS WITH A SMALL BANK LOAN HE STARTED A ZURICH OFFICE WITH NO SECRETARY AND NO TELEPHONE HE MADE CALLS FROM THE LOCAL POST OFFICE HIS BIG BREAK CAME WHEN A GERMAN MANUFACTURER OF CAR PARTS ASKED FOR HIS HELP WITH A NONFUNCTIONING FURNACE THAT EVERYONE ELSE HAD WRITTEN OFF MR HAYEK GOT THE FURNACE WORKING AND WITH IT AN INTRODUCTION TO GERMANY'S INDUSTRIAL ELITE HE WENT ON TO BUILD ZURICHBASED HAYEK ENGINEERING AG A GLOBAL CONSULTING CONCERN EMPLOYING 350 SPECIALISTS WHO ADVISE GOVERNMENTS INTERNATIONAL ORGANIZATIONS AND LEADING MULTINATIONAL COMPANIES 9305280150 930528 BECTON DICKINSON SETS BUYBACK FRANKLIN LAKES NJ BECTON DICKINSON & CO SAID ITS DIRECTORS AUTHORIZED THE REPURCHASE OF AS MANY AS FIVE MILLION COMMON SHARES AS OF MARCH 31 BECTON DICKINSON HAD 762 MILLION SHARES OUTSTANDING THE HEALTHCAREPRODUCTS AND DIAGNOSTICSYSTEMS COMPANY SAID IT PLANS TO USE THE SHARES FOR GENERAL CORPORATE PURPOSES THE BUYBACK WILL BE IN ADDITION TO APPROXIMATELY 11 MILLION SHARES REMAINING FROM A PREVIOUS BUYBACK AUTHORIZATION THE COMPANY HAS ALREADY REPURCHASED 850000 SHARES THIS FISCAL YEAR 9305280149 930528 STATE AUTO MUTUAL SETS PURCHASE COLUMBUS OHIO STATE AUTO MUTUAL INSURANCE CO 60OWNER OF STATE AUTO FINANCIAL CORP SAID IT AGREED TO ACQUIRE MILBANK INSURANCE CO FROM ROYAL GROUP INC A UNIT OF THE UK'S ROYAL INSURANCE HOLDINGS PLC TERMS WEREN'T DISCLOSED BUT STATE AUTO CALLED THE PURCHASE OF MILBANK SIGNIFICANT THE ACQUISITION OF MILBANK WITH 47 MILLION OF ANNUAL NET WRITTEN PREMIUM IN 1992 WILL CAUSE STATE AUTO TO EXPAND INTO MINNESOTA SOUTH DAKOTA NORTH DAKOTA AND UTAH MILBANK'S MARKETING SYSTEM PRODUCTS AND PHILOSOPHY FIT PERFECTLY WITH STATE AUTO'S SAID THE PROPERTY AND CASUALTY INSURANCE HOLDING COMPANY 9305280148 930528 PROVIDENT LIFE SETS SETTLEMENT CHATTANOOGA TENN PROVIDENT LIFE & ACCIDENT INSURANCE CO OF AMERICA SAID IT WILL PAY 27 MILLION TO SETTLE A FIVEYEAR DISPUTE OVER MEDICARE CLAIMS THE COMPANY SAID THE FUNDS WILL COME FROM SPECIAL RESERVES AND FROM FUNDS DEPOSITED SINCE 1990 THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES HAD STATED ORIGINALLY THAT THE COMPANY WAS LIABLE FOR UP TO 223 MILLION PROVIDENT SAID THE DISPUTE STEMS FROM OVERPAYMENTS MADE BY MEDICARE TO INDIVIDUALS COVERED BY BOTH AN EMPLOYERSPONSORED HEALTH PLAN AND BY MEDICARE 9305280147 930528 SONAT INC'S PROPOSED PIPELINE BIRMINGHAM ALA SONAT INC SAID IT WILL SPEND 230 MILLION TO 320 MILLION TO BUILD A NEW FLORIDA NATURALGAS PIPELINE IF THERE IS SUFFICIENT INTEREST IN THE EXPANDED SERVICE IT WOULD PROVIDE THE BIRMINGHAM ENERGY COMPANY SAID THE PIPELINE WOULD BE MORE THAN 200 MILES LONG AND WOULD SERVE CENTRAL FLORIDA 9305280146 930528 INTERNATIONAL BRITAIN'S MAJOR FIRES LAMONT FROM TREASURY CLARKE IS NAMED CHANCELLOR AS CABINET RESHUFFLES IN BID FOR FRESH START BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AFTER MONTHS OF PRODDING FROM THE MEDIA BUSINESSPEOPLE AND HIS OWN TORY BACKBENCHERS BRITAIN'S PRIME MINISTER FINALLY MOVED TO SHORE UP HIS SAGGING POLITICAL FORTUNES BY FIRING NORMAN LAMONT HIS LONGSERVING CHANCELLOR OF THE EXCHEQUER AND ONE OF HIS CLOSEST ALLIES FROM THE TREASURY THE MOVE IS A BID TO BRING A MUCHNEEDED FRESH START TO AN ADMINISTRATION PLAGUED BY PROBLEMS AND UTURNS THAT HAS BECOME ONE OF BRITAIN'S MOSTUNPOPULAR GOVERNMENTS IN RECENT MEMORY IN MR LAMONT'S PLACE AS CHANCELLOR PRIME MINISTER JOHN MAJOR MOVED OVER HIS HOME SECRETARY KENNETH CLARKE A BLUFF 52YEAROLD LAWYER THE CHANGES DON'T PORTEND A MAJOR SHIFT IN GOVERNMENT POLICY INDEED BY FIRING MR LAMONT MR MAJOR RISKS EXPOSING HIMSELF TO MORE CRITICISM AND ATTACKS THAN BEFORE AS CHANCELLOR IN THE LAST 2 1/2 YEARS MR LAMONT HAD BECOME A LIGHTNING ROD FOR THE GOVERNMENT DURING BRITAIN'S LONGEST RECESSION SINCE WORLD WAR II MR CLARKE BY CONTRAST THOUGH A MAJOR LOYALIST IS UNLIKELY TO FULFILL THE SAME FUNCTION UNLIKE MR LAMONT NOBODY BLAMES CLARKE FOR THE ECONOMIC STATE OF THE COUNTRY SAYS ROBERT WORCESTER CHAIRMAN OF THE MORI POLLING AND MARKETRESEARCH AGENCY LAMONT'S DEPARTURE EXPOSES NO 10 DOWNING STREET THE PRIME MINISTER'S OFFICIAL RESIDENCE TO DIRECT ATTACK IF THE ECONOMY DOESN'T IMPROVE MAJOR IS GOING TO BE VERY VULNERABLE THE POUND STERLING SLUMPED AGAINST MOST OTHER EUROPEAN CURRENCIES AND THE JAPANESE YEN FOLLOWING THE APPOINTMENT OF MR CLARKE AGAINST THE US DOLLAR STERLING ROSE SLIGHTLY TO 15630 LATE IN NEW YORK FROM 15475 CLAMOR FOR A RESHUFFLE HAD BEEN BUILDING SINCE THE CONSERVATIVES' DEVASTATING DEFEAT THREE WEEKS AGO IN COUNTY COUNCIL ELECTIONS AND A PARLIAMENTARY BYELECTION ON MAY 8 IT ROSE IN A CRESCENDO THIS WEEK AS MR LAMONT AND HIS AIDES AT THE TREASURY HINTED AT NEW TAX INCREASES AND SPENDING CUTS IN A BID TO CONTROL BRITAIN'S BALLOONING PUBLIC SECTOR DEFICIT TIMED TO COINCIDE WITH THE START OF A 10DAY PARLIAMENTARY RECESS MR MAJOR'S FIRST GOVERNMENT REORGANIZATION SINCE HIS SURPRISE WIN A YEAR AGO PRODUCED LITTLE IN THE WAY OF NEW FACES EVEN MR LAMONT COULD HAVE STAYED IN THE CABINET IF HE HAD ACCEPTED MR MAJOR'S OFFER OF A TRANSFER TO THE DEPARTMENT OF THE ENVIRONMENT MICHAEL HOWARD SWITCHED FROM ENVIRONMENT SECRETARY TO TAKE MR CLARKE'S PLACE AT THE HOME OFFICE JOHN SELWYNGUMMER FORMERLY AGRICULTURE MINISTER TOOK ON THE ENVIRONMENT PORTFOLIO GILLIAN SHEPHARD LEFT THE EMPLOYMENT MINISTRY FOR THE AGRICULTURE MINISTRY HER PLACE AS EMPLOYMENT SECRETARY WAS TAKEN BY DAVID HUNT HITHERTO THE SECRETARY OF STATE FOR WALES THE ONLY NEW CABINET ENTRY WAS JOHN REDWOOD A FORMER JUNIOR MINISTER IN CHARGE OF LOCAL GOVERNMENT WHO TOOK OVER AS WELSH SECRETARY THE KEY TO MR MAJOR'S BID TO REVIVE HIS WANING POPULARITY WAS MR CLARKE'S APPOINTMENT AS CHANCELLOR AN EBULLIENT MAN KNOWN FOR HIS PROEUROPEAN VIEWS THE NEW CHANCELLOR IS ONE OF THE FEW STARS OF THE CONSERVATIVE PARTY AND AN ASTUTE POLITICIAN WITH AN ABILITY TO TURN ADVERSITY TO ADVANTAGE MR CLARKE ISN'T EXPECTED TO INTRODUCE MAJOR CHANGES IN ECONOMIC POLICY BUT HIS CHEERFUL PUGNACITY IS LIKELY TO MAKE HIM MORE SUCCESSFUL THAN MR LAMONT IN PUSHING THROUGH THE TAX INCREASES AND SPENDING CUTS NEEDED TO CURB BRITAIN'S SOARING PUBLICSECTOR DEFICIT 9305280145 930528 SCEPTRE RESOURCES LTD CALGARY ALBERTA SCEPTRE RESOURCES LTD SAID IT AGREED TO PAY 65 MILLION CANADIAN DOLLARS 515 MILLION FOR GULF CANADA RESOURCES LTD'S OIL PROPERTIES AND FACILITIES IN SOUTHEAST SASKATCHEWAN THE CALGARY OIL PRODUCING COMPANIES SAID LAST MONTH THEY INTENDED TO MAKE THE TRANSACTION BUT DIDN'T DISCLOSE THE TERMS 9305280144 930528 THURSDAY'S MARKETS INDUSTRIALS RISE 1467 HIT RECORD STRENGTH IS LINKED TO ONLY 3 STOCKS BOND PRICES DECLINE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE HIT YET ANOTHER RECORD EVEN THOUGH BROADER MARKET MEASURES LANGUISHED BOND PRICES FELL AND THE DOLLAR SLID TO ANOTHER RECORD LOW AGAINST THE YEN THE DOW JONES INDUSTRIALS GAINED 1467 POINTS TO 355483 BUT STANDARD & POOR'S 500STOCK INDEX FELL 103 TO 45241 AND THE NASDAQ COMPOSITE INDEX INCHED UP 050 TO 70459 STOCK PRICES SURGED IN EARLY TRADING AMID HOPES THAT THE CLINTON ADMINISTRATION'S DEFICITREDUCTION PLAN WOULD BE APPROVED BY THE HOUSE OF REPRESENTATIVES BUT PRICES WEAKENED LATER AFTER REPORTS THAT THE VOTE WOULDN'T BE HELD UNTIL AFTER THE MARKET'S CLOSE AND THAT THE DEMOCRATS WERE BELIEVED TO BE A FEW VOTES SHORT OF PASSAGE YESTERDAY EVENING HOWEVER THE HOUSE PASSED THE PACKAGE ANALYSTS SAID THE STRENGTH IN THE INDUSTRIAL AVERAGE WAS LINKED TO JUST THREE STOCKS CHEVRON WHICH SOARED 3 3/4 TO 88 5/8 AFTER ANNOUNCING PLANS FOR A RESTRUCTURING TEXACO WHICH JUMPED 1 TO 64 1/2 AND CATERPILLAR WHICH GAINED 2 3/8 TO 72 3/4 THE MARKET IS HIGHER BUT IT'S NOT A VERY CLEAN AND HANDSOME RUN SAID RALPH BLOCH MARKET STRATEGIST AT RAYMOND JAMES & ASSOCIATES IN ST PETERSBURG FLA MR BLOCH POINTED OUT THAT TECHNOLOGY STOCKS WHICH HAVE HELPED GIVE THE MARKET SOME DIRECTION RECENTLY PROVIDED ADDED LEADERSHIP AGAIN YESTERDAY JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO SAID HE WASN'T ENCOURAGED BY THE PERFORMANCE OF THE BROADER MARKET YESTERDAY NOTING THAT THE DOW JONES TRANSPORTATION AND UTILITY INDEXES FELL ALONG WITH THE S&P 500 AND THAT DECLINING ISSUES ON THE BIG BOARD LED ADVANCERS FUNDAMENTALLY THE MARKET DIDN'T FEEL GOOD MR MCALINDEN SAID WE COULD BE SET UP FOR A SHORTTERM AIR POCKET THE BOND MARKET WAS BUFFETED YESTERDAY BY WORRIES ABOUT A POSSIBLE TIGHTENING OF MONETARY POLICY BY THE FEDERAL RESERVE BOND PRICES SLUMPED AFTER A TELEVISION REPORT THAT THE FEDERAL RESERVE'S FEDERAL OPEN MARKET COMMITTEE HAD VOTED UNANIMOUSLY THIS MONTH TO LEAN TOWARD TIGHTER CREDIT CURRENCY TRADERS SAID THE FEDERAL RESERVE BANK OF NEW YORK INTERVENED IN THE MARKET ON SEVERAL OCCASIONS YESTERDAY IN AN EFFORT TO PROP UP THE SAGGING DOLLAR BUT THEY ADDED THE FED'S BUYING DIDN'T APPEAR TO HAVE MUCH IMPACT ON THE DOLLAR'S SLIDE AGAINST THE YEN THAT'S SWIMMING AGAINST THE TIDE MR MCALINDEN SAID IT HAS BEEN SHOWN OVER AND OVER THAT CENTRAL BANKS CAN'T REVERSE A TREND THE MARKET'S JUST TOO BIG OVERSEAS HONG KONG STOCKS SOARED 13 TO ANOTHER RECORD ON HOPES OF BETTER RELATIONS BETWEEN CHINA AND BRITAIN THE MARKET CLOSED BEFORE PRESIDENT CLINTON ANNOUNCED HE WOULD EXTEND CHINA'S MOSTFAVOREDNATION TRADE STATUS FOR ONE YEAR THE MOVE WILL LIKELY PUSH HONG KONG SHARES HIGHER IN EUROPE STOCK PRICES ROSE MODESTLY IN GERMANY FRANCE AND ENGLAND WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 095 TO 10850 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2909 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 998 ISSUES FELL AND 923 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL 1/8 POINT OR 125 FOR EACH 1000 FACE AMOUNT TO YIELD 693 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16025 MARKS AND 10715 YEN COMPARED WITH 16278 MARKS AND 10850 YEN WEDNESDAY 9305280143 930528 CIBAGEIGY UNIT STOPS DRUG SALE SUMMIT NJ CIBAGEIGY CORP'S PHARMACEUTICAL DIVISION SAID IT STOPPED THE DISTRIBUTION OF LITHOBID SLOWRELEASE TABLETS USED FOR TREATMENT OF MANICDEPRESSIVE ILLNESS THE COMPANY SAID IT WAS UNABLE TO ENSURE PRODUCT CONSISTENCY UNDER FOOD AND DRUG ADMINISTRATION MANUFACTURING STANDARDS BUT IT SAID IT DOESN'T HAVE ANY EVIDENCE TO SUGGEST A SAFETY OR EFFICACY CONCERN WITH THE LITHOBID AVAILABLE ON THE MARKET THE US SUBSIDIARY OF CIBAGEIGY LTD SWITZERLAND HAS BEEN SELLING LITHOBID SINCE IT BOUGHT THE PRODUCT IN 1981 9305280142 930528 SOUTH KOREAN WHEAT IMPORTS STIR A DISPUTE QUARANTINE OF US GOODS UNDERSCORES DIFFICULTIES FOR THE NEW ECONOMY' BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA PRESIDENT KIM YOUNG SAM'S VISION OF A NEW ECONOMY ALREADY HAS COLLIDED WITH THE REALITY OF SOUTH KOREA'S ENTRENCHED BUREAUCRACY OVER THE FATE OF 11000 TONS OF IMPORTED US WHEAT REPRESENTING CHANGE THE MANTRA OF MR KIM'S REFORMIST ADMINISTRATION IS A GROUP OF FAMILYRUN MILLING COMPANIES WHOSE WHEAT SHIPMENT WAS QUARANTINED IN EARLY FEBRUARY HEALTH OFFICIALS SAID THE WHEAT CONTAINED UNACCEPTABLY HIGH LEVELS OF THE PESTICIDE THIOPHANATE METHYL THE WHEAT VALUED AT ABOUT 2 MILLION EXCLUDING STORAGE COSTS HAS SINCE LANGUISHED ON THE DOCKS AT THE PORT OF PUSAN MEANWHILE SEVERAL TESTS CONDUCTED ON THE WHEAT BY NEUTRAL PARTIES FAILED TO SHOW TRACES OF THE PESTICIDE PROMPTING THE MILLERS TO SUE THE MINISTRY OF HEALTH AND SOCIAL AFFAIRS THE GOVERNMENT DEPARTMENT THAT ORDERED THE SHIPMENT QUARANTINED BUSINESS LEADERS SAY THEY CAN'T REMEMBER THE LAST TIME A KOREAN CONGLOMERATE LET ALONE A GROUP OF SMALL COMPANIES TOOK THE GOVERNMENT TO COURT LATE LAST WEEK CUSTOMS OFFICIALS QUARANTINED A SECOND SHIPMENT OF US WHEAT WHICH THEY SAID CONTAINED HIGH LEVELS OF ANOTHER PESTICIDE MALATHIONE EATING THE COSTS OF THIS IMPOUNDED SHIPMENT ARE THE SAME FOUR MILLERS THAT HAVE LOCKED HORNS WITH THE GOVERNMENT US AGRICULTURE OFFICIALS IN SEOUL SAY THE ODDS OF THE SAME FOUR COMPANIES IMPORTING TWO CONTAMINATED SHIPMENTS OF US WHEAT WITHIN A FOURMONTH PERIOD ARE INCALCULABLE KOREA BUYS ABOUT THREEQUARTERS OF ITS IMPORTED WHEAT FROM THE US ABOUT 15 MILLION TONS PASSED THROUGH KOREAN CUSTOMS IN 1992 WITHOUT INCIDENT FOR THE PAST SIX MONTHS THE BULK OF US GRAIN IMPORTS HAS BEEN TESTED BEFORE SHIPMENT BY THE OREGON STATE LABORATORY AT THE REQUEST OF KOREAN IMPORTERS INCLUDING THE FOUR MILLERS THAT ARE SUING THE HEALTH MINISTRY WE'RE DOUBTFUL AS TO THE ACCURACY OF THE KOREAN GOVERNMENT'S TEST RESULTS SAYS A US EMBASSY OFFICIAL IN SEOUL THE REPUTATION OF THE OREGON STATE LABORATORY IS KNOWN WORLDWIDE BOTH THE JAPANESE AND TAIWANESE FOR EXAMPLE REGARD IT AS EQUIVALENT TO A GOVERNMENT LAB KOREA'S WHEAT IMPORTERS HAVE BEEN EMPLOYING THE OREGON STATE LAB SINCE LATE LAST YEAR WHEN THE HEALTH MINISTRY INTRODUCED AN INSPECTION CODE FOR IMPORTED WHEAT THAT IS FAR MORE EXHAUSTIVE THAN THE ONE USED BY THE US GOVERNMENT SOME OF THE CHEMICALS THE MINISTRY LOOKS FOR AREN'T EVEN USED IN GROWING OR HANDLING US WHEAT EVEN THE LOCAL PRESS ORDINARILY AN ENTHUSIASTIC TRANSMITTER OF POPULIST ATTACKS AGAINST US PRODUCE SUGGESTED THE HEALTH MINISTRY'S INSPECTION PROCESS IS FLAWED AND SHOULD BE REEXAMINED THOSE REPORTS WERE TRIGGERED BY THE RESULTS OF THE HEALTH MINISTRY'S OWN FOLLOWUP INSPECTION OF THE INITIAL SHIPMENT WHICH SHOWED THIOPHANATE METHYL IN MUCH SMALLER TRACES THAN IN THE FIRST TEST PRIVATELY LOCAL BUSINESS PEOPLE AND US OFFICIALS SAY MOUNTING EVIDENCE AGAINST THE MINISTRY'S INITIAL RULING HAS PUT IT ON THE DEFENSIVE RATHER THAN SOUND A RETREAT AND ADMIT ITS MISTAKE THEY SAY THE MINISTRY IS HOLDING THE MILLERS' SECOND SHIPMENT HOSTAGE TO PRESSURE THEM INTO WITHDRAWING THEIR SUIT THIS CASE HAS BECOME VERY VISIBLE SAID A LOCAL AGRIBUSINESSMAN THERE'S NO WAY FOR ANYONE TO BACK OUT NEITHER SIDE IN THE WHEAT DISPUTE WOULD COMMENT IN KOREA WHICH IS KNOWN FOR ITS POWERFUL UNWIELDY BUREAUCRACY SUCH CONFRONTATIONS RARELY GET THIS FAR CIVIL SERVANTS USING THE VAST RESOURCES OF THEIR AGENCIES ROUTINELY BEAT BACK CHALLENGES FROM THE COUNTRY'S MOST REVERED INDUSTRIALISTS CHUNG JU YUNG THE FOUNDER OF HYUNDAI BUSINESS GROUP IS THE MOST RECENT CASUALTY HE AND THE COMPANIES UNDER HIS CONTROL HAVE BEEN HOUNDED BY TAX AUDITS SINCE MID1992 WHEN HE LAUNCHED A VOCAL ANTIESTABLISHMENT POLITICAL MOVEMENT MR CHUNG HAS SINCE SWORN OFF POLITICS WITH SUCH A DAUNTING BUREAUCRACY FEW WOULD HAVE EXPECTED A HANDFUL OF FAMILYRUN WHEAT MILLERS TO TAKE THE OFFENSIVE BUT THAT WAS BEFORE MR KIM KOREA'S FIRST FREELY ELECTED PRESIDENT MADE THE SMALL BUSINESSMAN THE HERO OF HIS PLANS FOR SWEEPING ECONOMIC REFORM A BLUEPRINT FOR THE ADMINISTRATION'S NEW ECONOMY DUE OUT LATE NEXT MONTH WILL PROMOTE KOREA'S UNDERDEVELOPED SMALLBUSINESS SECTOR IN PART BY REDUCING THE GOVERNMENT'S ROLE IN THE ECONOMY MANY ANALYSTS SAY THE PLAN WHICH MUST BE IMPLEMENTED BY THE SAME BUREAUCRACY IT THREATENS TO NEUTRALIZE IS DOOMED TO FAILURE THEY NOTE THAT KOREA'S NETWORK OF CIVIL SERVANTS SURVIVED THE REFORMIST PRESSURE OF PAST AUTOCRATIC REGIMES AND WILL SURELY PERSEVERE UNDER MR KIM THE MILLERS ARE BETTING THE FARM ON THE PRESIDENT THEIR HAND WAS STRENGTHENED BY THE RESULTS OF TEST FINDINGS FROM THE US FOOD AND DRUG ADMINISTRATION THE US DEPARTMENT OF AGRICULTURE THE JAPAN GRAIN INSPECTION ASSOCIATION AND THE KOREAN INSTITUTE OF SCIENCE AND TECHNOLOGY NONE OF THE EXAMINATIONS TURNED UP TRACES OF THIOPHANATE METHYL IN A PRELIMINARY HEARING TWO WEEKS AGO A JUDGE THREW OUT THE MINISTRY'S TEST RESULTS IN FAVOR OF ANOTHER INSPECTION TO BE CONDUCTED JOINTLY BY REPRESENTATIVES FROM THE TWO PARTIES THE FINDINGS SHOULD BE MADE PUBLIC EARLY NEXT MONTH ANALYSTS SAY IT IS ALMOST AS RARE FOR KOREA'S LEGAL SYSTEM TO RULE AGAINST THE GOVERNMENT AS IT IS FOR SMALL BUSINESS TO TAKE IT TO COURT THINGS ARE CHANGING SAYS THE US DIPLOMAT BUT THEY THE MILLERS ALSO HAD A LOT OF AMMUNITION 9305280141 930528 REVIEW & OUTLOOK EDITORIAL JUDGE NEWMAN'S KNIFE MOVING RIGHT ALONG BILL CLINTON IS THINKING ABOUT NOMINATING TO THE SUPREME COURT A FEDERAL APPEALS COURT JUDGE WHOSE MOST NOTABLE PUBLIC ACT WAS TO PUBLISH AN OPED ARTICLE SHOVING A KNIFE INTO CLARENCE THOMAS'S NOMINATION TO THE SUPREME COURT THIS NOMINATION WOULD REALLY TAKE SOME GALL NEWS REPORTS YESTERDAY SUGGESTED THAT THE WHITE HOUSE LIST HAD BEEN NARROWED TO TWO MEN FROM NEW ENGLAND JUDGE STEPHEN G BREYER OF THE FIRST CIRCUIT IN BOSTON AND JUDGE JON O NEWMAN OF THE SECOND CIRCUIT IN HARTFORD WE HAVE NO PARTICULAR TAKE ON JUDGE BREYER BUT WE'RE MOST CERTAINLY FAMILIAR WITH THE HYPERPARTISAN JUDGE NEWMAN IT WAS JUDGE NEWMAN WHO AT THE HEIGHT OF THE CONTROVERSY SURROUNDING CLARENCE THOMAS AND ANITA HILL BEFORE THE SENATE JUDICIARY COMMITTEE DECIDED THAT NOTHING WAS MORE IMPORTANT THAN FOR HIM TO STEP AWAY FROM THE FEDERAL BENCH AND SOLVE THE MESS WITH AN OPINION PIECE ON THE OPED PAGE OF THE NEW YORK TIMES JUDGE NEWMAN'S OCTOBER 10 1991 ARTICLE IN THE TIMES WAS CALLED A REPLACEMENT FOR THOMAS JUDGE THOMAS SHOULD STEP ASIDE JUDGE NEWMAN BEGAN HIS THOUGHTS ON A COLLEAGUE ON THE FEDERAL BENCH HE CONTINUED THE PRESIDENT SAID JUDGE THOMAS WAS THE PERSON BEST QUALIFIED IN THE ENTIRE COUNTRY NO ONE SERIOUSLY THOUGHT THIS WAS TRUE HE HAS A MEDIOCRE EDUCATIONAL RECORD FOLLOWED BY SOME YEARS OF USEFUL GOVERNMENT SERVICE AND 17 MONTHS OF JUDICIAL EXPERIENCE UNDISTINGUISHED BY ANY NOTABLE OPINIONS JUDGE NEWMAN ALSO FELT FREE TO DELIVER HIS OPINION ON THE ANITA HILL CONTROVERSY ITSELF IT IS UNLIKELY THAT HER ALLEGATIONS ARE ENTIRELY GROUNDLESS THOUGH THE PRECISE FACTS WILL PROBABLY NEVER BE KNOWN NOW IF WE UNDERSTAND THIS CORRECTLY WHAT THE WHITE HOUSE HAS IN MIND IS THAT JUDGE NEWMAN IS SOMEONE THEY WOULD SEND ONTO THE HIGH COURT TO SIT ALONGSIDE AND WORK WITH THE SAME JUSTICE CLARENCE THOMAS WHOM HE MOCKED AS MEDIOCRE AND UNDISTINGUISHED PERHAPS THEY FIGURE THAT ALL THIS HAPPENED MONTHS AGO AND BY NOW JUSTICE THOMAS WOULD BE HAPPY TO LET JUDGE NEWMAN COME ON BOARD TO PULL THAT KNIFE OUT OF HIS BACK THE FACT IS JUDGE NEWMAN'S APPEARANCE ON THE SHORT LIST REVEALS A WHITE HOUSE VERY MUCH AT A REMOVE FROM THE COUNTRY'S POLITICS OR ITS INSTITUTIONS IT SUGGESTS A MINDSET SO ARROGANT THAT IT SOMEHOW THINKS IT CAN CRAM ANY INITIATIVE NO MATTER HOW INSENSITIVE DOWN THE THROAT OF THE SYSTEM PUTTING JUDGE NEWMAN ON THE SUPREME COURT WOULD HAVE MUCH IN COMMON WITH THE MANNER IN WHICH MR CLINTON HANDLED GAYS IN THE MILITARY BUT WHY SHOULD THE COURT GO UNSCATHED WITHIN THE SPACE OF A HUNDRED OR SO DAYS THE CLINTON FOLKS HAVE WITH THEIR DECISIONS DISRUPTED THE ARMED FORCES VIRTUALLY SHATTERED THE DEMOCRATIC PARTY TWICE HUMILIATED THE ATTORNEY GENERAL THREATENED WHAT'S LEFT OF THE CIVIL RIGHTS CONSENSUS WITH THE GUINIER NOMINATION AT JUSTICE AND TURNED THE WHITE HOUSE ITSELF INTO A PLACE OF SEEMINGLY ENDLESS MAYHEM SO BY ALL MEANS INVITE ONTO THE COURT THE VERY JUDGE WHO DROVE OFF THE ROAD TO DEFEAT THE NOMINATION OF ONE OF THE NOWSITTING JUSTICES BEYOND THIS INSTITUTIONAL TURMOIL HOWEVER LIE SERIOUS QUESTIONS ABOUT TEMPERAMENT BOTH JUDGE NEWMAN'S AND THAT OF MR CLINTON'S CLOSEST ADVISERS JUDGE NEWMAN'S INTERVENTION INTO THE SUPREME COURT CONFIRMATION PROCESS WAS AN ASTONISHING BREACH OF JUDICIAL ETHICS IT COMPROMISED THE INDEPENDENCE OF THE FEDERAL JUDICIARY BY MAKING IT A PARTICIPANT TO WHAT IS BY CONSENSUS ONE OF THE COUNTRY'S RAWEST POLITICAL ARENAS THE SENATE JUDICIARY COMMITTEE YES JUDGES ARE ENTITLED TO THEIR OPINIONS BUT IT IS EVEN TRUER THAT THEY ARE EXPECTED TO SHOW JUDGMENT AND RESTRAINT SO THE PUBLIC RETAINS SOME DEGREE OF CONFIDENCE IN THEIR IMPARTIALITY IF THE NEWMAN STANDARD BECAME THE NORM WE WOULD SOON BE HOLDING ELECTIONS FOR ELECTING JUDGES THE PUBLIC WOULDN'T STAND FOR SUCH OVERT PARTISANSHIP WE SUSPECT THAT JUDGE NEWMAN KNEW WELL ENOUGH THE RISKS THAT PIECE ENTAILED FOR HIS OWN SUPREME COURT PROSPECTS BUT GIVEN THE RANKNESS OF OUR CONFIRMATION POLITICS HE MAY HAVE CONCLUDED CORRECTLY THAT HARDLY ANYONE WOULD BLINK IF A FEDERAL JUDGE PILED ON WE GAVE HIM THE LAWYERLY ARROGANCE AWARD WHEN HIS PIECE APPEARED OUR BEEF IS WITH THE CLINTON WHITE HOUSE WHICH EITHER IS INDEED AWARE OF THE AWFUL IRONY AND INSTITUTIONAL RISKS HERE AND DOESN'T CARE OR MORE LIKELY IT IS SO LOST AMID ITS OWN CLUMSY PIPEDREAMS THAT IT ACTUALLY WOULDN'T NOTICE WHAT IT WOULD BE DOING TO THE COURT 9305280140 930528 LEISURE & ARTS ON SPORTS A STROLL AROUND ROLAND GARROS BY FREDERICK C KLEIN PARIS THERE ARE TWO WAYS TO WATCH THE EARLY ROUNDS OF A TENNIS TOURNAMENT ONE IS TO PLANT YOURSELF IN A SEAT ANY SEAT AND HAVE THE TOURNEY COME TO YOU THE OTHER IS TO STROLL THE GROUNDS SAMPLING THIS AND THAT IN EASY CONFIDENCE THAT YOU CAN GET SERIOUS ONCE THE PROCEEDINGS GET DOWN TO THE UH SERIOUS STROKES THIS BEING PARIS THAT PREEMINENT CITY OF THE STROLL THE SECOND ALTERNATIVE SEEMED BEST AND HERE AT THE FRENCH OPEN THE WORLD'S CHAMPIONSHIP OF CLAY THE STROLLER IS AMPLY REWARDED FIRST ONE CAN PURSUE THE STADIUM NAMED FOR ROLAND GARROS A DARING WORLD WAR I AVIATOR WHOSE NICKNAME WAS THE CLOUD KISSER YES IT'S CONCRETE AND LARGE AS BEFITS THE HOME OF A TENNIS MAJOR BUT THE GROUNDSKEEPERS HAVE PERSUADED IVY TO GROW ON IT IN A CHARMING WAY THAT DID NOT OCCUR TO THOSE WHO TEND TO THE US'S ALSOCONCRETE NATIONAL TENNIS CENTER IN NEW YORK THEN THERE ARE THE TREES WHICH LOOK NATURAL DESPITE THEIR URBAN SETTING AND THEN THERE IS THE COMPLEX'S CENTERPIECE THE PLAZA SURROUNDED BY BRONZE STATUES OF FRENCH TENNIS'S FOUR MOUSQUETAIRES SO DUBBED IN THE 1920S AND '30S WHEN FRANCE WAS WINNING SIX STRAIGHT DAVIS CUPS JACQUES BRUGNON JEAN BOROTRA HENRI COCHET AND RENE LACOSTE ARE CAPTURED IN TENNIS POSES PANT LEGS FLAPPING WITH NARY AN EXPLANATION OF WHY BOROTRA APPEARS TO BE WEARING A HAIR NET THE MOUSQUETAIRES' LAST CUP WIN WAS IN 1932 AND FRENCH TENNIS GLOIRE HAS BEEN SCARCE SINCE MARCEL BERNARD WON THE MEN'S SINGLES TITLE HERE IN 1946 AS KIND OF AN AFTERTHOUGHT HE ENTERED THE SINGLES ONLY BECAUSE HIS MIXEDDOUBLES PARTNER STOOD HIM UP IT WOULD BE 37 MORE YEARS BEFORE ANOTHER PLAYER REPRESENTING FRANCE CAMEROONBORN YANNICK NOAH WOULD PUT TOGETHER THE ONLY TRULY SOLID TWO WEEKS OF TENNIS IN A MERCURIAL CAREER AND CAPTURE THAT CROWN NO FRENCH WOMAN HAS WON A HOMEOPEN SINGLES TITLE SINCE THE END OF WORLD WAR II THE FINAL FRENCH FLASH ON THE TENNIS SCENE CAME IN 1991 WHEN THE DUO OF HENRI LECONTE AND GUY FORGET WON THE DAVIS CUP BEATING THE US IN THE FINAL BUT THEY DIDN'T DO IT AT THE STADIUM BUILT TO HOUSE THE FAB FOUR'S 1928 CUP DEFENSE AND SINCE REBUILT FROM THE GROUND UP BUT AT A CARPETED INDOOR VENUE IN LYON IT'S IRONIC THAT FRANCE THE CAPITAL OF TENNIS'S SLOWANDDIRTY CLAYCOURT ASPECT HAS PRODUCED MOSTLY FASTCOURT SPECIALISTS IN RECENT YEARS NOAH WAS ONE AND SO IS FORGET WHOSE SERVE IS CONSIDERED A REAL BOOMER LECONTE A FINALIST HERE IN 1988 PLAYS BOTH UP AND BACK BUT BETTER UP FORGET RANKED 17TH WORLDWIDE ISN'T PLAYING HERE BECAUSE OF AN INJURY LECONTE IS ALMOST 30 AND HAS BEEN PLAGUED BY BACK ILLS HIS CURRENT RANKING IS 65 LONG A PARISIAN FAVORITE BECAUSE OF HIS PECULIAR COMBINATION OF EMOTION AND SAVOIR FAIRE HE SHOWED UP FOR A FIRSTROUND MATCH TUESDAY BUT HAD THE BAD LUCK OF DRAWING SERGI BRUGUERA A SPANISH CLAYCOURT SPECIALIST THE TWO PLAYED ONE GOOD SET WHICH BRUGUERA WON 76 AND TWO BAD ONES WHICH BRUGUERA ALSO WON 61 AND 60 LECONTE LATER WAS ASKED IF HIS POOPOUT INDICATED HE'D PREPARED INSUFFICIENTLY FOR THE TOURNEY IF I PLAY AS OFTEN AS THE OTHER PLAYERS IN SIX MONTHS I'D HAVE TO STOP PLAYING AND I DON'T WANT TO END UP IN A WHEELCHAIR HE SAID IN REFERENCE TO HIS TENDER BACK ASKED WHY HE WASN'T APPARENTLY ANGERED BY THE LOSS HE WAXED PHILOSOPHICAL NOT LONG AGO CHILDREN WERE TAKEN HOSTAGE IN A SCHOOL WAR IS EVERYWHERE I AM PLAYING TENNIS THERE ARE OTHER DISAPPOINTMENTS IN LIFE THAT ARE STRONGER HE SAID THIS OPEN HAS NOT BEEN CLOSED TO FRENCH SUCCESS HOWEVER MARY PIERCE WHO WAS RAISED IN FLORIDA BUT WHOSE MOTHER IS FRENCH AND LISTS HER NATIONALITY AS FRENCH FOR REASONS OF TENNIS POLITICS IS SEEDED 12TH AMONG THE WOMEN AND HAS BREEZED THROUGH HER FIRST TWO ROUNDS ROLAND GARROS FANS GLAD ENOUGH TO CLAIM HER SHOUTED MARIE MARIE WHEN SHE WON ON WEDNESDAY EN PLUS THE TWO BIGGEST UPSETS IN THE EARLY MEN'S ROUNDS HAVE BEEN PULLED OFF BY FRENCHMEN ON TUESDAY STEPHANE HUET RANKED 297TH COMING IN AND PLAYING IN HIS FIRST GRAND SLAM EVENT DEFEATED IVAN LENDL THE SEVENTH SEED AND THREETIME CHAMPION HERE IN FOUR SETS ON WEDNESDAY 24YEAROLD RODOLPHE GILBERT WHOSE NO 92 WORLD RANKING MADE HIM ONLY SLIGHTLY BETTER KNOWN THAN HUET BEAT BORIS BECKER OF GERMANY THE NO 4 SEED 75 63 AND 75 THE BOYISH HUET IS 22 YEARS OLD BUT LOOKS MAYBE 17 LENDL LOOKED LIKE LENDL UNTIL HE BEGAN TO HIT THE BALL I WAS HITTING IT AS HARD AS I COULD AND IT WASN'T DOING ANYTHING CONFESSED THE ONCEFORMIDABLE IVAN WHO AT 33 HASN'T WON AN IMPORTANT TOURNEY IN MORE THAN THREE YEARS BECKER WHO LIKE DICK ALLEN THE FORMER BASEBALL PLAYER PREFERS TO PLAY ON A SURFACE A HORSE CAN EAT WAS EQUALLY DOWN ON HIMSELF I HAD NO BACKCOURT GAME AND NO FOREHAND SAID HE I'M GLAD MY CLAYCOURT SEASON IS OVER BUT NEITHER HUET NOR GILBERT IS A KID IN TENNIS TERMS AND THAT COULD WORK AGAINST THEM THE CENTRAL FACT ABOUT CLAYCOURT TENNIS IS THAT IT TAKES GOOD LEGS TO PREVAIL AND THE VERY YOUNG ARE MOST LIKELY TO HAVE THEM THE FIRST TIME I WAS HERE IN 1989 THE SINGLES TITLES WERE COPPED BY MICHAEL CHANG AND ARANTXA SANCHEZ VICARIO A COUPLE OF 17YEAROLDS PUTTING CLAY TENNIS IN THE CATEGORY OF WOMEN'S SWIMMING AND GYMNASTICS AS THE PROVINCE OF DILIGENT CHILDREN THEN MONICA SELES CAME ALONG AT 16 TO WIN THE NEXT YEAR NO NONTEEN HAS TAKEN THE WOMEN'S CROWN SINCE STEFFI GRAF WON IN 1987 AT 17 FLORIDIAN JIM COURIER WON MEN'S CHAMPIONSHIPS IN 1991 AT 20 AND LAST YEAR AT 21 IN THE ABSENCE OF SELES WHO WAS STABBED IN THE BACK BY A NUT DURING A TOURNAMENT IN HAMBURG GERMANY A FEW WEEKS AGO GRAF SEEMS LIKELY TO WIN THIS ONE DITTO FOR THE REDHAIRED COURIER WHO'S LOOKED SHARP IN WINNING HIS FIRST TWO MATCHES THAT HE IS PROPERLY MOTIVATED FOR THE GRIND AHEAD WAS APPARENT WEDNESDAY AFTER HE'D REDDUSTED THE SPANIARD TOMAS CARBONELL WITH THE LOSS OF BUT FIVE GAMES HE CONDUCTED ONE OF THE SHORTEST POSTMATCH INTERVIEWS EVER THEN ANNOUNCED HE HAD TO TAKE HIS OWN TOUR OF THE GROUNDS GOTTA VISIT THE PRACTICE COURTS HE SAID 9305280139 930528 INTERNATIONAL JAPAN'S APRIL RETAIL SALES FELL TOKYO SALES OF JAPAN'S MAJOR DEPARTMENT STORES AND SUPERMARKETS IN APRIL FELL 4 TO 1732 TRILLION YEN 1597 BILLION FROM THE YEAREARLIER MONTH BRINGING THE STRING OF YEARONYEAR DECLINES TO 11 MONTHS THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY REPORTED THE PACE OF DECLINE IN THE LATEST REPORTING MONTH WAS SLOWER THAN THE 75 FALL IN MARCH OVERALL RETAIL SALES WHICH WAS THE SHARPEST YEARONYEAR DROP SINCE THE MINISTRY ADOPTED ITS CURRENT STATISTICAL METHOD IN JANUARY 1988 RETAIL SALES ARE AN IMPORTANT INDICATOR OF CONSUMER SPENDING TRENDS A MAJOR LOCOMOTIVE DRIVING JAPAN'S ECONOMIC GROWTH IN LATE 1980S PERSONAL CONSUMPTION OUTLAYS ACCOUNT FOR ALMOST 60 OF JAPAN'S GROSS NATIONAL PRODUCT 9305280138 930528 REVIEW & OUTLOOK EDITORIAL FATE OF THE WORLD YESTERDAY THE FATE OF THE WORLD HINGED OR SO IT APPARENTLY SEEMED FROM SOME VANTAGE POINTS ON THE OUTCOME OF THE HOUSE VOTE ON PRESIDENT CLINTON'S ECONOMIC FANTASIES TRYING TO ROUND UP THE LAST VOTE FOR HIS PACKAGE THE PRESIDENT NOT ONLY TOOK TO MORNING TV BUT TRADED AWAY HIS OPPOSITION TO SUBSIDIES FOR HONEYBEE FARMERS PREVIOUSLY THE SOLE PROGRAM HE'D FOUND TO ABOLISH THE HOUSE VOTE REALLY WAS IMPORTANT IN ONE RESPECT BY AFFECTING TO CLOSE THE DEFICIT WITH TAX INCREASES AND BY STAGING AN ONGOING MARX BROTHERS MOVIE IN THE WHITE HOUSE THE ADMINISTRATION HAD WORKED ITSELF INTO A NOWIN SITUATION IT COULDN'T AFFORD TO POSTPONE THE VOTE BUT EVERYONE UNDERSTOOD THAT IF THE BILL PASSED IT WOULD BE RADICALLY CHANGED IN THE SENATE ANYWAY IN TERMS OF REALWORLD IMPACT IN FACT THE HOUSE DEBATE WAS BY NO MEANS THE MOST IMPORTANT ECONOMIC EVENT IN THE NEWS YESTERDAY IT WAS FAR LESS IMPORTANT THAN THE RUMBLINGS OF INFLATION IN THE FALLING DOLLAR AND THE GOLD PRICE PIERCING 380 A 12MONTH HIGH HAPPILY THERE ARE ALSO SIGNS OF RESISTANCE TO THIS DISCONCERTING DEVELOPMENT TREASURY UNDERSECRETARY LAWRENCE SUMMERS SAID OF THE YEN THAT THE MARKET HAS MOVED TOO FAR TOO FAST AND THERE WERE FURTHER STORIES THAT FEDERAL RESERVE OFFICIALS AS OUR DAVID WESSEL REPORTED MONDAY TILTED TOWARD TIGHTENING AT THEIR MEETING LAST WEEK THE KEY FEDERAL FUNDS ESSENTIALLY AT 30 SINCE SEPTEMBER HIT 35 THIS WEEK THE HIGHER SHORT RATES NOTE CAREFULLY HAVE MEANT LOWER LONG RATES AS BOND PRICES ROSE YESTERDAY WHILE STOCKS WERE MIXED THE DOW MANAGED A NEW RECORD THE INFLATION SIGNS IN THE FINANCIAL MARKETS CAME ALONGSIDE SIGNS OF DETERIORATION IN THE REAL ECONOMY IN PARTICULAR ERODING CONSUMER CONFIDENCE THAT IS TO SAY WE ARE SEEING THE EARLY SIGNS OF THE STAGFLATION WE KNEW SO WELL DURING THE CARTER PRESIDENCY LAST TIME AROUND THIS DISEASE WAS CURED BY THE PRESCRIPTION OF TIGHT MONEY AND INCENTIVEDIRECTED TAX LEGISLATION THE BILL BEFORE THE HOUSE WAS THE OPPOSITE THOUGH AGAIN EVERYONE WONDERS WHAT WILL EVENTUALLY EMERGE IN YESTERDAY'S NEWS THE HOUSE VOTE WAS ALSO LESS IMPORTANT THAN THE NEW VOLLEYS THAT MAY PRESAGE A TRADE WAR TAKING TIME OUT FROM TWISTING ARMS ON CAPITOL HILL THE ADMINISTRATION TOOK AIM AT OUR EUROPEAN TRADING PARTNERS PRECLUDING THEM FROM BIDDING ON CERTAIN GOVERNMENT CONTRACTS THE EUROPEAN COMMUNITY HAS BEEN NAUGHTY THE LOGIC RUNS SO WE WILL STOP OURSELVES FROM TAKING THE LOWEST POSSIBLE BID WHEN WE BUY SOMETHING THE EUROPEANS THREATEN TO RETALIATE BY NOT TAKING THE LOW BID IF IT'S AMERICAN THE LAST TIME GROWNUPS PLAYED THIS GAME IT WAS CALLED THE GREAT DEPRESSION 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 9305280137 930528 DOW JONES WORLD INDEX SERIES IS RECALCULATED NEW YORK SEVERAL DATA ERRORS WERE CORRECTED IN THE DOW JONES WORLD STOCK INDEX RESULTING IN A RECALCULATION OF THE INDEX SERIES THE NEW INDEX NUMBERS APPEAR IN TODAY'S EDITION OF THE WALL STREET JOURNAL THE LARGEST CHANGES APPEAR IN ELECTRIC UTILITIES IN GREAT BRITAIN AND IN EUROPE AND CHEMICALS IN MALAYSIA THE WORLD INDEX ITSELF WAS MINIMALLY AFFECTED THE WORLD INDEX CLOSED WEDNESDAY IN US DOLLAR TERMS AT 10755 RATHER THAN 10774 AS ORIGINALLY REPORTED THE ERRORS WERE CAUSED MAINLY BY ISOLATED MISAPPLICATIONS OF STOCKPRICING AND CORPORATE ACTION DATA ITEMS CORPORATE ACTIONS INCLUDE SUCH MATTERS AS STOCK SPLITS MERGERS AND THE LIKE 9305280136 930528 PEPPERAND SALT THE WEAK ECONOMY IS BOOSTING COUPON CLIPPING NEWS NOTE DISCOUNTS AT THE GROCERY STORE A DROUGHT IN THE INTEREST RATE 9305280135 930528 CANADIAN BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION ON WEDNESDAY 21 BILLION CANADIAN DOLLARS US166 BILLION OF NONCALLABLE BONDS DUE SEPT 15 1995 PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9305280134 930528 LEISURE & ARTS THEATER THE STATE OF PLAYS BY MELANIE KIRKPATRICK NEW YORK AS THE ANNUAL TONY AWARDS ARE ANNOUNCED NEXT WEEK IT'S USEFUL TO REMEMBER THAT MOST OF THE SHOWS THAT OPEN ON NEW YORK STAGES AREN'T ELIGIBLE THAT'S BECAUSE THE LEAGUE OF AMERICAN THEATERS AND PRODUCERS WHICH ADMINISTERS THE TONYS LIMITS THE AWARDS TO BROADWAY SHOWS IT IS NO COINCIDENCE THAT THE TONYELIGIBLE SHOWS MUST OPEN IN ONE OF 35 THEATERS RUN BY MEMBERS OF THE SELFSAME LEAGUE TO GET A SENSE OF HOW LITTLE THE TONYELIGIBLE SHOWS ARE REPRESENTATIVE OF NEW YORK THEATER CONSIDER THAT THIS WEEK THERE ARE 19 SHOWS PLAYING ON BROADWAY COMPARED WITH ABOUT 72 OFFBROADWAY AND DOZENS MORE OFFOFFBROADWAY AS IS OFTEN THE CASE NONE OF THE FOUR PLAYS NOMINATED FOR THE TONY FOR BEST PLAY THIS YEAR ORIGINATED ON BROADWAY TONY KUSHNER'S ANGELS IN AMERICA CAME TO NEW YORK VIA LONDON SAN FRANCISCO AND LOS ANGELES THE SISTERS ROSENSWEIG BY WENDY WASSERSTEIN PREMIERED OFFBROADWAY AT LINCOLN CENTER FRANK MCGUINNESS'S SOMEONE WHO'LL WATCH OVER ME DEBUTED IN LONDON AND THE SONG OF JACOB ZULU BY TUG YOURGRAU WAS ORIGINALLY PRODUCED BY CHICAGO'S STEPPENWOLF THEATRE COMPANY NO ONE WILL BE SURPRISED TO LEARN THAT TONY LIKE HER COMMERCIAL COUSINS OSCAR AND EMMY HAS HER EYE FIRMLY FIXED ON THE BOX OFFICE THIS IS NOT NECESSARILY A BAD THING OF COURSE ESPECIALLY IF YOU SUBSCRIBE TO THE NOTION THAT THE PUBLIC WILL SUPPORT QUALITY WHAT'S DISTRESSING IS THAT OFFBROADWAY PLAYS DON'T GET A CHANCE TO COMPETE FOR THE THEATER'S HIGHEST LAUREL IN A FAIRER WORLD THREE PLAYS THAT WOULD BE IN THE RUNNING FOR TONYS THIS YEAR ARE LATER LIFE BY AR GURNEY THREE HOTELS BY JON ROBIN BAITZ AND PLAYBOY OF THE WEST INDIES BY MUSTAPHA MATURA LATER LIFE IS THE FUNNIEST AND THE MOST MOVING PLAY TO OPEN HERE THIS YEAR IT IS WITTY AND WISE PROVING ONCE AGAIN THAT THE HEART IS NOT A FOREIGN COUNTRY TO MR GURNEY MR GURNEY HAS MADE HIS REPUTATION AS A SEARING CHRONICLER OF HIGH WASPDOM IN LATER LIFE PLAYWRIGHTS HORIZONS HE GIVES US A WASP'S WASP A BOSTON BRAHMIN BY THE NAME OF AUSTIN AS PLAYED BY THE REDOUBTABLE CHARLES KIMBROUGH AUSTIN EMBODIES BOTH THE VIRTUES AND THE VICES OF HIS CLASS HE'S SOBER FAIRMINDED AND THOUGHTFUL THE KIND OF RARE PRINCIPLED MAN YOU CAN COUNT ON TO DO THE RIGHT THING AT THE RIGHT TIME BUT HE'S ALSO A MAN WHO LACKS A SENSE OF LIFE'S POSSIBILITIES ESPECIALLY OF LIFE'S JOYS AND THEN HE GETS A SECOND CHANCE HE RUNS INTO A WOMAN RUTH WHOM HE HAD REJECTED 30 YEARS AGO ON THE ISLE OF CAPRI WHEN HE WAS A YOUNG NAVAL OFFICER AND SHE WAS A VACATIONING STUDENT SHE IS BEAUTIFUL SHE IS AVAILABLE AND SHE SEEMS AS CRAZY ABOUT HIM AS HE IS ABOUT HER SHE IS ALSO LEAVING BOSTON SOON POSSIBLY THAT EVENING HE MUST MAKE A DECISION LATER LIFE IS NO PSYCHOLOGICAL MELODRAMA AUSTIN AND RUTH MAUREEN ANDERMAN DON'T USE THE FASHIONABLE SELFHELP TERMINOLOGY OR EVEN DELVE MUCH INTO EACH OTHER'S FEELINGS INSTEAD THEIR STORY IS LOWKEY AND MOSTLY UNEMOTIONAL PROOF THAT LIFE'S MOST MOMENTOUS MOMENTS CAN ALSO BE ITS MOST ORDINARYSEEMING ONES LATER LIFE IS ALSO A SPARKLING TIGHTLY CRAFTED DRAWINGROOM COMEDY THE DRAWING ROOM HAS BEEN CONVERTED INTO THE TERRACE OF A SWANKY HIGHRISE APARTMENT BUILDING OVERLOOKING BOSTON HARBOR A PARTY IS IN PROGRESS INSIDE AND AS AUSTIN AND RUTH PURSUE THEIR FLIRTATION A STREAM OF GUESTS SEEK TEMPORARY REFUGE ON THE TERRACE EACH INTERLOPER IS ZANIER THAN THE LAST AND EACH CHARACTER IS PLAYED IN A SERIES OF SPLENDID COMIC TURNS BY ANTHONY HEALD AND CAROLE SHELLEY MR BAITZ'S THREE HOTELS CIRCLE REP ALSO CONCERNS A COUPLE LATER IN LIFE IT IS A GRIMMER TALE FOR KENNETH AND BARBARA HOYLE'S MARRIAGE IS FALLING APART THEIR WORLD IS FALLING APART TOO KEN IS ABOUT TO LOSE HIS JOB AS AN INTERNATIONAL EXECUTIVE WITH A COMPANY THAT MAKES INFANT FORMULA THE PLAY'S UNUSUAL STRUCTURE ACCENTUATES THE COUPLE'S ALIENATION ORIGINALLY WRITTEN FOR TELEVISION EACH OF THE THREE ACTS IS A MONOLOGUE DELIVERED BY KEN OR BARBARA IN A HOTEL ROOM FAR FROM HOME MOROCCO THE VIRGIN ISLANDS MEXICO THE TWO NEVER MEET ON STAGE DESPITE THIS LACK OF ACTION RON RIFKIN IS RIVETING AS KEN WHOSE SELFMOCKING MUSINGS ARE ALTERNATELY HILARIOUS AND POIGNANT CHRISTINE LAHTI NOW REPLACED BY DEBRA MONK MADE AN EDGY AND VULNERABLE BARBARA WHILE THREE HOTELS CAN BE EXTREMELY FUNNY AND EVEN TOUCHING IT'S ALSO IRRITATINGLY HEAVYHANDED MR BAITZ HAS MUCH TO LEARN ABOUT SUBTLETY THE COUPLE'S ANGUISHED MUSINGS WEAR THIN AFTER A WHILE AND THE PLAY'S SHRILL ANTIBUSINESS TONE BORDERS ON LUDICROUS KEN ONCE A RIGHTTHINKING MIDDLECLASS JEWISH LIBERAL HAS BEEN TRANSFORMED BY HIS JOB INTO A RICH RIGHTWING OPPRESSOR OF THE POOR BARBARA IS ALSO A VICTIM OF THE COMPANY MADE TO FOLLOW HER HUSBAND TO TREACHEROUS THIRD WORLD COUNTRIES WHERE SHE IS FORCED INTO THE TWIN DEMEANING ROLES OF HORRORS HOMEMAKER AND HOSTESS IT'S ALL A LITTLE MUCH ALSO A LITTLE MUCH IS PLAYBOY OF THE WEST INDIES LINCOLN CENTER PLAYBOY IS A ROISTERING CALYPSO VERSION OF JM SYNGE'S RUEFUL THEATRICAL FABLE OF IRISH ANTICOLONIALIST PASSIONS PLAYBOY OF THE WESTERN WORLD 1921 SET IN TRINIDAD IN 1950 THE PLOT IS THE SAME A YOUNG MAN WANDERS INTO TOWN AND IS TREATED LIKE A HERO BECAUSE HE SAYS HE HAS KILLED HIS FATHER WHEN HIS UNDEAD FATHER TURNS UP THE DISAPPOINTED TOWN TURNS ON HIM UNDER THE DIRECTION OF GERALD GUITIERREZ THIS CARIBBEAN PLAYBOY IS ROLLICKING AND OFTEN ENGAGING AS THE WOULDBE PARRICIDE VICTOR LOVE IS ROMANTIC AND HEROIC MICHELE SHAY GLOWS AS A LUSTY WITCH DOCTOR AND LORRAINE TOUSSAINT IS ELECTRIC AS A MATTEROFFACT YOUNG WOMAN WHO FALLS IN LOVE WITH THE STRANGER MR MATURA'S LANGUAGE IS MUSICAL BUT IN THE END IT'S ALL MUCH OF A MUCHNESS MUCH TOO WHIMSICAL AND MUCH TOO LONG 9305280133 930528 POTOMAC WATCH IT'S TIME WE KNEW MORE ABOUT HILLARY'S MEANING' BY PAUL A GIGOT EVERYONE HERE IS TALKING ABOUT BILL CLINTON'S INCREDIBLE SHRINKING PRESIDENCY EVERYONE IS ALSO TALKING ABOUT HILLARY RODHAM CLINTON'S INCREDIBLE EXPANDING PHILOSOPHY MAYBE THE TWO ARE RELATED SO FAR THE PRESIDENT IS THE ONE TAKING LUMPS WHILE THE FIRST LADY GETS ONLY KUDOS HE'S SAID TO BE SOFT BUT SHE'S SUPPOSED TO BE TOUGH HER CLOUT RISES WHILE HIS FALLS BUT WHAT IF HIS FALL RESULTS IN PART FROM HER RISE THAT QUESTION COMES TO MIND AFTER READING WHAT MRS CLINTON HAS LATELY BEEN REVEALING ABOUT HER OWN POLITICS THE BEST GUIDE SO FAR IS MICHAEL KELLY'S AMAZING NEW YORK TIMES PROFILE LAST SUNDAY SAINT HILLARY WHICH IS EVEN MORE THE TALK OF WASHINGTON THAN HER HUSBAND'S 200 COIFFURE MRS CLINTON NOW SAYS HER AMBITION IS TO FIND A NEW POLITICS OF MEANING AMERICANS SHE HAS BEEN SAYING WITHOUT IRONY MUST REDEFINE WHO WE ARE AS HUMAN BEINGS IN THIS POSTMODERN AGE SHE WANTS TO LEAD NOTHING LESS THAN A REMAKING OF THE AMERICAN WAY OF POLITICS GOVERNMENT INDEED LIFE AND YOU THOUGHT HEALTH CARE WAS A CHALLENGE IT'S OF COURSE EASY TO LAMPOON ALL OF THIS LIKE NANCY REAGAN'S ASTROLOGY OR TO WRITE IT OFF AS HYPOCRISY THE FIRST LADY WHO DEPLORES THE GREED OF THE 1980S IS AFTER ALL THE SAME WOMAN WHO CASHED IN ON HER LAW PARTNERSHIP IN LATE 1992 JUST BEFORE HER HUSBAND'S HIGHER TAX RATES WOULD KICK IN BUT HILLARY'S HAGIOGRAPHY IS NO JOKE FOR WHAT HER TALK REVEALS IS A MENTALITY THAT GIVES FAR TOO MUCH MEANING TO POLITICS THIS PASSION HELPS EXPLAIN WHY THE CLINTONS HAVE CAREENED SO FAR AND FAST TOWARD FRANTICALLY ACTIVIST GOVERNMENT IT'S REVEALING THAT MRS CLINTON'S GURU ON ALL THIS IS MICHAEL LERNER OF TIKKUN THE LEFTISH JEWISH MAGAZINE NEW DEMOCRATS ARE SUPPOSED TO BE TOUGHMINDED SKEPTICS OF GOVERNMENT BUT MR LERNER IS AN AGING '60S RADICAL WHO STILL SEES ONLY A GOVERNMENT OF THE GOOD A RECENT LERNER COLUMN IN THE VILLAGE VOICE JEWS ARE NOT WHITE WAS A PAEAN TO LIBERAL MULTICULTURALISM AND A LERNER ESSAY ON THE POLITICS OF MEANING IT'S HIS PHRASEOFFERS SUCH PROFOUND IDEAS AS THIS THE DEPARTMENT OF LABOR SHOULD CREATE A PROGRAM TO TRAIN A CORPS OF UNION PERSONNEL WORKER REPRESENTATIVES AND PSYCHOTHERAPISTS IN THE RELEVANT SKILLS TO ASSIST DEVELOPING A NEW SPIRIT OF COOPERATION MUTUAL CARING AND DEDICATION TO WORK THIS IS THE POLITICS OF MUMBO JUMBO MRS CLINTON IS TOO SHREWD TO ENDORSE SUCH DETAILS HERSELF WHICH MAKES HER SPECIFIC GOALS HARD TO PIN DOWN BUT WHAT WE KNOW ABOUT HER INFLUENCE INSIDE THE WHITE HOUSE SUGGESTS A LERNERLIKE FAITH IN THE THERAPEUTIC STATE HER FINGERPRINTS WERE ALL OVER MR CLINTON'S PROPOSED NATIONALIZATION OF THE VACCINE MARKET WHICH FLOPPED ON CAPITOL HILL SHE PICKED HER OLD FRIEND FROM THE WATERGATE DAYS BERNARD NUSSBAUM AS WHITE HOUSE GENERAL COUNSEL THEN AIDES SAY THEY BOTH HELPED PICK LANI GUINIER FOR THE TOP CIVILRIGHTS JOB AT JUSTICE THEREBY SETTING HER HUSBAND UP AS A PROPONENT OF RACIAL QUOTAS SHE ALSO USUALLY SIDES WITH THE LIBERALS IN HEALTHCARE DEBATES AGAINST MORE CAUTIOUS ECONOMIC ADVISERS ONLY YESTERDAY SHE OPENED HER HEALTHCARE CAMPAIGN WITH A TIRADE AGAINST PRICEGOUGING AND PROFITEERING THIS WILL NO DOUBT BE A SPUR TO JOB CREATION HILLARY'S INDEPENDENT POWER MAY ALSO CONTRIBUTE TO WHITE HOUSE DISORDER HER CHIEF ENFORCER LAWYER SUSAN THOMASES HOLDS NO FORMAL TITLE BUT HAS THE RUN OF THE WHITE HOUSE WITH A COVETED WEST WING PASS MACK MCLARTY WAS CHOSEN PRECISELY BECAUSE HE WOULDN'T TRY TO DOMINATE THE WHITE HOUSE YET NOW HE'S CRITICIZED FOR NOT IMPOSING ORDER ON THE LIKES OF MS THOMASES ALL OF THIS SHOULD BE NEWS MUCH AS JOHN SUNUNU'S POLICY FORAYS WERE NEWS IN THE BUSH YEARS BUT MRS CLINTON HAS HAD A KIND OF SOVEREIGN IMMUNITY FROM THIS SORT OF SCRUTINY SHE IS COVERED FOR WHO SHE IS NOT FOR WHAT SHE THINKS OR DOES PARTLY THIS IS SPIN CONTROL SHE GRANTS INTERVIEWS ON HER JUGGLING OF MOTHERHOOD AND CAREER BUT NOT ON THE SUBSTANCE OF HEALTH CARE BUT SHE ALSO BENEFITS FROM COVERAGE BY REPORTERS ESPECIALLY BY FEMINIST REPORTERS WHO HAVE A STAKE IN HER SUCCESS AS A WOMAN WITH POWER SO THEY STRESS HER ROLE AS A CULTURAL ICON WHILE IGNORING THE QUALITY OF HER POLICY ADVICE AND OF COURSE ANYONE WHO CRITICIZES HILLARY IS ACCUSED OF WANTING TO ENSLAVE WOMEN IN THE KITCHEN SUCH COVERAGE IS NO BETTER THAN WHAT USED TO RUN IN OLD NEWSPAPER WOMEN'S PAGES IF HILLARY HAS POWER AMERICANS DESERVE TO KNOW HOW SHE USES IT MRS CLINTON SAYS SHE HATES LABELS AND EVEN CALLS HERSELF A CONSERVATIVE IT WOULD BE NICE TO THINK SO AND HERE AND THERE IN HER SPEECHES SHE LANDS ON A CONSERVATIVE INSIGHT SUCH AS PERSONAL RESPONSIBILITY BUT THERE IS NO OTHER EVIDENCE IN HER POLITICS TO SHOW IT A CONSERVATIVE FIRST LADY WOULDN'T TALK AS IF SALVATION COULD BE FOUND THROUGH POLITICS SHE WOULD KNOW THAT MOST AMERICANS SEEK MEANING THROUGH THEIR FAMILIES THEIR CHURCHES AND THEIR DAILY LIVES NOT THROUGH THE GOOD INTENTIONS OF THE STATE IF MRS CLINTON'S POLITICS OF MEANING IS THE REAL MEANING OF CLINTONISM THIS PRESIDENT'S PROBLEMS HAVE ONLY JUST BEGUN 9305280132 930528 WHO'S NEWS NANOMETRICS INC NANOMETRICS INC SUNNYVALE CALIF WILLIAM R TURNQUIST 39 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS OPTICAL PRODUCTS CONCERN MR TURNQUIST WHO WAS SENIOR VICE PRESIDENT AND DIRECTOR OF SALES AND MARKETING SUCCEEDS VINCENT COATES WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY HASN'T NAMED A SUCCESSOR FOR MR TURNQUIST 9305280131 930528 THE CLINTON TAX PACKAGE HONEY SUBSIDY STICKS TELLS FAMILIAR TALE BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TO DEMONSTRATE FISCAL DISCIPLINE PRESIDENT CLINTON PLEDGED TO ELIMINATE AN OFTCITED EXAMPLE OF WASTEFUL GOVERNMENT SPENDING THE FEDERAL HONEY SUBSIDY YET THE SUBSIDY LIVES ON ALTHOUGH SHRUNKEN IN THE DEFICITREDUCTION BILL THE HOUSE PASSED YESTERDAY FOR CRITICS ITS SURVIVAL IS A TESTAMENT TO CONGRESS'S ADDICTION TO SPENDING AND THE FLIMSINESS OF POLITICIANS' DEFICITCUTTING PROMISES STILL SUCH SETBACKS CAN'T OBSCURE THE FACT THAT A DEMOCRATIC ADMINISTRATION AND CONGRESS ARE POISED TO ENACT REAL AND SUBSTANTIAL CUTS IN FEDERAL BENEFITS PROGRAMS SOME OF WHICH PRESIDENTS BUSH AND REAGAN TRIED AND FAILED TO OBTAIN IN THE PAST THE BILL TO IMPLEMENT MR CLINTON'S FIVEYEAR BUDGET PACKAGE WOULD CUT 87 BILLION FROM THOSE PROGRAMS CALLED ENTITLEMENTS BECAUSE THEY PROVIDE BENEFITS AUTOMATICALLY TO ALL AMERICANS WHO QUALIFY THE BULK OF THAT AMOUNT ABOUT 50 BILLION WOULD COME FROM THE MEDICARE PROGRAM BY FREEZING REIMBURSEMENT TO DOCTORS AND HOSPITALS AND CHARGING BENEFICIARIES HIGHER PREMIUMS FOR PART B COVERAGE OF DOCTOR'S VISITS A CHANGE THAT FORMER PRESIDENT BUSH SOUGHT UNSUCCESSFULLY THERE'S MORE 108 BILLION WOULD BE CUT FROM THE FEDERAL EMPLOYEE RETIREMENT PROGRAM A NET 56 BILLION WOULD BE CUT FROM MEDICAID THE HEALTH PROGRAM FOR THE POOR 3 BILLION WOULD BE CUT FROM AGRICULTURE PROGRAMS INCLUDING HONEY AND 26 BILLION WOULD BE FROM VETERANS' PROGRAMS AN ADDITIONAL 72 BILLION WOULD BE RAISED FROM AUCTIONING PORTIONS OF THE PUBLIC RADIO SPECTRUM A CHANGE ALSO SOUGHT UNSUCCESSFULLY BY PRESIDENT BUSH ADD ANOTHER 32 BILLION IF YOU COUNT THE TAX INCREASE ON UPPERINCOME SOCIAL SECURITY RECIPIENTS AS A SPENDING CUT AS DID RONALD REAGAN WHEN HE APPROVED THE IDEA DURING HIS PRESIDENCY MR CLINTON'S ANTAGONISTS ON CAPITOL HILL COMPLAIN THAT STILL ISN'T ENOUGH BECAUSE EXPLOSIVE GROWTH IN BENEFIT PROGRAMS HAS SENT THE BUDGET DEFICIT SOARING IN RECENT YEARS THEY SAY THE ENTITLEMENT CUTS WHILE SUBSTANTIAL ARE DWARFED BY THE ADMINISTRATION'S PROPOSED 250 BILLION IN TAX INCREASES AND BELIEVE MR CLINTON UNDERESTIMATED THE PUBLIC'S READINESS TO ACCEPT TOUGHER DEFICITREDUCTION MEDICINE REP RICHARD ARMEY R TEXAS A FREEMARKET CONSERVATIVE WHO HEADS THE HOUSE REPUBLICAN CONFERENCE ASSERTS THAT THERE'S NO SPENDING DISCIPLINE IN THIS PACKAGE AT ALL SOME OUTSIDE ANALYSTS AGREE MORE IS NEEDED DID THEY DO ANYTHING SIGNIFICANT ON ENTITLEMENTS YES THEY DID SAYS CAROL COX WAIT WHO HEADS THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET DID THEY DO NEARLY ENOUGH NO THEY DIDN'T OF COURSE THE TEST OF ANY DEFICITREDUCTION PROGRAM IS WHETHER IT CAN COMMAND A MAJORITY IN CONGRESS CONSIDERING THE VAST POLITICAL INFLUENCE OF SENIOR CITIZENS DEEPER SOCIAL SECURITY OR MEDICARE CUTS WOULD HAVE STIFFENED OPPOSITION TO MR CLINTON'S PROPOSAL IF YOU WERE TO DOUBLE THE MEDICARE CUTS YOU'D BRING THE WHOLE PACKAGE DOWN SAYS BOB GREENSTEIN DIRECTOR OF THE CENTER ON BUDGET AND POLICY PRIORITIES THE ELDERLY RECOGNIZE THAT WE NEED TO GET SOMETHING DONE TO CUT THE DEFICIT ADDS MARTIN CORRY DIRECTOR OF FEDERAL AFFAIRS FOR THE 33 MILLION MEMBER AMERICAN ASSOCIATION OF RETIRED PERSONS BUT THE CLINTON PACKAGE STRETCHES THE LIMITS OF PEOPLE'S WILLINGNESS TO GO ALONG SIMILAR PRESSURES IN MINIATURE THWARTED MR CLINTON'S PROPOSAL TO ELIMINATE HONEY SUBSIDIES THOUGH THE PROGRAM IS COMPARATIVELY SMALL 17 MILLION IN THE CURRENT FISCAL YEAR OPPONENTS SAY IT'S A USELESS GIVEAWAY TO A TINY FRACTION OF THE NATION'S 200000 BEEKEEPERS BUT THE PROGRAM'S DEFENDERS ON THE HOUSE AGRICULTURE COMMITTEE WEREN'T WILLING TO KILL IT INSTEAD THEY CUT THE PROGRAM 23 MILLION OVER FIVE YEARS EVEN ONE OF THE MOST OUTSPOKEN DEMOCRATIC ADVOCATES OF FEDERAL SPENDING RESTRAINT FRESHMAN REP TOM BARLOW OF KENTUCKY SAYS HIS SERVICE ON THE COMMITTEE MADE HIM SENSITIVE TO THE FACT THAT THE SUBSIDY HELPS ENSURE A PLENTIFUL SUPPLY OF BEES TO POLLINATE US CROPS EVERYONE TALKS ABOUT CUTS SAYS LIBERAL REP CHARLES SCHUMER D NY WHO HAS JOINED WITH MR ARMEY IN LAMPOONING THE HONEY PROGRAM BUT HE ADDS IT'S VERY HARD TO GET 218 VOTES EVEN TO CUT A SMALL PROGRAM LIKE HONEY THAT'S THE PROBLEM THE PUSH AND PULL OF COMPETING INTERESTS ALSO COMPLICATED NEGOTIATIONS OVER THE DEMAND BY DEMOCRATIC CONSERVATIVES FOR GREATER RESTRAINT ON ENTITLEMENT SPENDING UNLIKE THE HONEY PROGRAM THAT ISN'T A SMALL ISSUE THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT IN THE FIVE YEARS FOLLOWING THE MUCHTOUTED 1990 BUDGET DEAL MEDICARE AND MEDICAID SPENDING ALONE WILL INCREASE 163 BILLION BEYOND INITIAL PROJECTIONS OR ALMOST TWICE AS MUCH AS THE TOTAL ENTITLEMENT SAVINGS CALLED FOR IN THAT DEAL THE CONSERVATIVE HOUSE DEMOCRATS INITIALLY WANTED TO FORCE OFFSETTING CUTS OR TAX INCREASES IF ENTITLEMENT SPENDING EXCEEDED PROJECTED AMOUNTS AS IT HAS IN RECENT YEARS BUT DEMOCRATIC LIBERALS FEARED THAT COULD UNFAIRLY CUT SERVICES TO THE NEEDY TO PRESERVE VOTES FROM BOTH FACTIONS DEMOCRATIC LEADERS CAME UP WITH A COMPROMISE REQUIRING CONGRESS TO VOTE ON UNEXPECTED ENTITLEMENT INCREASES THEY WOULD HAVE THREE OPTIONS TO RAISE TAXES TO CUT SPENDING OR SIMPLY ALLOW THE DEFICIT TO MUSHROOM FISCALLY CONSERVATIVE REP JIM SLATTERY D KAN CALLED IT AN HISTORIC CHANGE THAT WILL HOLD CONGRESS ACCOUNTABLE FOR SPENDING INCREASES WHAT IT DOES IS MAKE THE PRESIDENT AND THE CONGRESS FACE SQUARELY UNANTICIPATED INCREASES IN ENTITLEMENT SPENDING AND VOTE EITHER TO DO SOMETHING ABOUT THEM OR EXPLICITLY NOT TO DO SOMETHING ABOUT THEM SAYS ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE PRESIDENT CLINTON FOR HIS PART INSISTS HIS REAL INITIATIVE TO RESTRAIN ENTITLEMENT SPENDING WILL COME IN THE HEALTHCARE REFORM PLAN TO BE UNVEILED IN JUNE SKEPTICS SUCH AS CAROL COX WAIT WHO HEADS THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET AREN'T CONVINCED I WOULD ARGUE THAT THE COUNTRY CAN'T AFFORD HEALTHCARE REFORM UNTIL WE'VE GOTTEN ENTITLEMENTS UNDER CONTROL SHE SAYS DO YOU KNOW HOW MANY TIMES WE'VE BEEN TOLD NEXT NEXT NEXT LATER LATER LATER 9305280130 930528 WHO'S NEWS STUDENT LOAN MARKETING ASSOCIATION STUDENT LOAN MARKETING ASSOCIATION WASHINGTON THIS PURCHASER OF STUDENT LOANS ELECTED THREE DIRECTORS JAMES E ROHR 44 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PNC BANK PITTSBURGH KENNETH A SHAW 54 CHANCELLOR OF SYRACUSE UNIVERSITY SYRACUSE NY AND JOHN W SPIEGEL 52 EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF SUNTRUST BANKS INC ATLANTA ROBERT L JOSS ROBERT G STEVENS AND RONALD J JURSA DIDN'T STAND FOR REELECTION TO THE 21MEMBER BOARD 9305280129 930528 PUTTING PARENTS FIRST BY WADE F HORN AS CONGRESS DEBATES THE CLINTON ADMINISTRATION'S BUDGET PROPOSAL MANY ARE SUGGESTING THAT MORE GOVERNMENT SPENDING ON SOCIAL PROGRAMS IS GOOD FOR CHILDREN FOR SOME IT IS AN ARTICLE OF FAITH THAT THE MORE GOVERNMENT SPENDS OR INVESTS IN SOCIAL PROGRAMS FOR CHILDREN AND FAMILIES THE MORE UNTROUBLED CHILDHOODS ARE ENSURED THE FEDERAL GOVERNMENT LARGELY HAS OPERATED UNDER SUCH A SOCIAL SPENDING AGENDA FOR THE PAST THREE DECADES INDEED FEDERAL SPENDING ON SOCIAL PROGRAMS FOR CHILDREN AND FAMILIES HAS SURGED SINCE 1960 FAR OUTPACING INFLATION YET BY ALMOST ALL INDICATORS MORE CHILDREN ARE AT RISK FOR POOR DEVELOPMENTAL OUTCOMES TODAY THAN THREE DECADES AGO WHY WHAT THE SOCIAL SPENDING AGENDA OVERLOOKS IS THAT IT IS NOT THE AMOUNT OF MONEY THAT GOVERNMENT INVESTS IN CHILDREN THAT PRODUCES HAPPY HEALTHY AND SECURE CHILDHOODS BUT HOW MUCH TIME AND ENERGY PARENTS INVEST IN THEIR CHILDREN A CHILD NEEDS TO KNOW THAT THERE ARE PEOPLE IN THIS WORLD WHO CARE ENOUGH ABOUT HIM THAT THEY WILL PUT HIS INTERESTS ABOVE THEIR OWN TO GROW AND PROSPER CHILDREN ALSO NEED LONGTERM CONSISTENT INTERACTIONS WITH AT LEAST ONE RELIABLE AND NURTURING ADULT CHILDREN NEED TO KNOW THAT DAY IN DAY OUT SOMEONE WILL BE THERE FOR THEM IN GOOD TIMES AND BAD INDEED RESEARCH ON CHILDREN WHO GROW UP TO BE PRODUCTIVE AND WELLADJUSTED ADULTS DESPITE HAVING LIVED IN DISMAL POVERTY WHILE YOUNG HAS FOUND THAT THESE CHILDREN KNEW ONE ADULT MOST OFTEN A PARENT OR A CLOSE RELATIVE WHO PROVIDED THEM WITH SUCH A LONGTERM CARING RELATIONSHIP TEACHERS COME AND GO SOCIAL WORKERS COME AND GO AND CERTAINLY PRESIDENTS COME AND GO BUT PARENTS AND FAMILIES ARE FOREVER CANDIDATE BILL CLINTON SEEMED TO UNDERSTAND THIS WHEN DURING HIS ACCEPTANCE SPEECH AT THE DEMOCRATIC NATIONAL CONVENTION HE STATED GOVERNMENTS DO NOT RAISE CHILDREN PARENTS DO WHAT DOES THIS REALLY MEAN FIRST AND FOREMOST EXCEPT IN CASES OF GROSS ABUSE GOVERNMENT MUST ASSUME THAT PARENTS NOT BUREAUCRATS OR POLITICIANS ARE IN THE BEST POSITION TO MAKE DECISIONS ABOUT THEIR CHILDREN'S WELFARE ONE OF THE MOST IMPORTANT ARENAS WHERE SUCH AN ASSUMPTION IS NEEDED IS IN EDUCATION PARENTS ARE THE PRIMARY AND MOST IMPORTANT TEACHERS FOR THEIR CHILDREN IT IS AFTER ALL FROM THEIR PARENTS THAT CHILDREN LEARN THEIR MOST IMPORTANT LESSONS LESSONS ABOUT VALUES CHARACTER AND STANDARDS FOR BEHAVIOR YET OVER THE PAST SEVERAL DECADES PUBLIC EDUCATION HAS OFTEN DISTANCED ITSELF FROM THE NEEDS AND DESIRES OF PARENTS ONE WAY TO GIVE PARENTS MORE RESPECT AND RESPONSIBILITY IS TO GIVE THEM VOUCHERS THAT LET THEM CHOOSE WHICH SCHOOLS THEIR CHILDREN WILL ATTEND ANOTHER AREA WHERE PUBLIC POLICY SHOULD RESPECT AND ENCOURAGE PARENTAL DECISION MAKING IS CHILD CARE HERE GOVERNMENT SHOULD PROVIDE LOWINCOME PARENTS WITH VOUCHERS SO THAT THEY CAN CHOOSE THEIR OWN CHILDCARE PROVIDER WHETHER A CHILDCARE CENTER A FAMILY DAYCARE HOME A RELIGIOUS INSTITUTION OR EVEN A RELATIVE IN FACT THIS IS PRECISELY WHAT THE BUSH ADMINISTRATION AND THE MORE CONSERVATIVE MEMBERS OF CONGRESS WERE ABLE TO INSERT INTO THE 850 MILLIONAYEAR CHILD CARE DEVELOPMENT BLOCK GRANT PROGRAM IF PRESIDENT CLINTON SERIOUSLY BELIEVES THAT PARENTS NOT GOVERNMENTS RAISE CHILDREN HIS ADMINISTRATION WILL MAINTAIN THE SAME COMMITMENT TO VOUCHERS IN ITS EXECUTIVE OVERSIGHT OF THIS PROGRAM ONE MUST BE CAREFUL NOT TO CONFUSE RESPECT FOR PARENTAL AUTONOMY AND DECISIONMAKING WITH EMPOWERING CHILDREN AND ESPECIALLY WITH THE SOCALLED CHILDREN'S RIGHTS MOVEMENT MANY ADVOCATES OF CHILDREN'S RIGHTS WOULD HAVE US BELIEVE THAT THEY ARE ONLY REFERRING TO SITUATIONS WHERE A CHILD IS IN DANGER OF IRREPARABLE HARM IF THE PARENTS' WISHES ARE FOLLOWED BUT THERE ARE ALREADY MANY LAWS THAT PROTECT CHILDREN IN THESE SITUATIONS IN TRUTH CHILDREN'S RIGHTS ADVOCATES INTEND TO GO MUCH FURTHER INDEED MARYLAND RECENTLY PASSED AN ABORTION LAW THAT ALLOWS THE PHYSICIAN PERFORMING AN ABORTION TO EXEMPT THE CHILD FROM PARENTAL NOTIFICATION REQUIREMENTS IF THE CHILD IS DETERMINED TO BE MATURE ENOUGH TO MAKE THE DECISION ON HER OWN AND ATTEMPTS TO ERODE THE AUTONOMY AND AUTHORITY OF PARENTS DO NOT STOP AT SUCH MAJOR LIFE DECISIONS INCREDIBLY UNDER MARYLAND STATE LAW IF A CHILD HAS HIS OWN LIBRARY CARD LIBRARY STAFF ARE PROHIBITED FROM DIVULGING TO PARENTS INFORMATION ABOUT THEIR CHILD'S BORROWING RECORD EVEN THOUGH THE PARENTS ARE FINANCIALLY RESPONSIBLE FOR ANY LOST BOOKS OR OVERDUE FINES AFTER AFFIRMING THE CENTRAL IMPORTANCE OF PARENTS IN BRINGING UP CHILDREN GOVERNMENT POLICY MUST STRIVE TO FIND WAYS TO HELP PARENTS SPEND MORE TIME BEING PARENTS UNFORTUNATELY OVER THE PAST SEVERAL DECADES GOVERNMENT POLICIES HAVE BEEN DOING THE OPPOSITE IN 1948 THE TYPICAL FAMILY OF FOUR PAID ONLY 2 OF ITS INCOME TO THE FEDERAL GOVERNMENT IN TAXES TODAY IT PAYS 24 WITH AN ADDITIONAL 8 TO 10 OF A FAMILY'S INCOME GOING TOWARD STATE AND LOCAL TAXES THIS DRAMATIC INCREASE IN THE TAX BURDEN HAS RESULTED IN PARENTS WORKING LONGER HOURS JUST TO STAY EVEN FINANCIALLY PUBLIC POLICY MUST BEGIN TO REVERSE THIS DECADESLONG INCREASE IN THE TAX BURDEN SO THAT PARENTS CAN INVEST MORE TIME AND ENERGY IN THEIR CHILDREN THE BEST WAY TO DO THIS IS TO INCREASE THE PERSONAL EXEMPTION FOR CHILDREN IN 1948 THE PERSONAL EXEMPTION SHIELDED ABOUT 80 OF THE INCOME OF A TYPICAL FAMILY OF FOUR FROM TAXES IN ORDER TO SHIELD AN EQUAL AMOUNT OF A FAMILY'S INCOME TODAY THE EXEMPTION WOULD HAVE TO BE RAISED FROM 2300 TO ABOUT 8200 PER DEPENDENT CHILD WHICH IS PRECISELY WHAT SHOULD BE DONE THE EARNED INCOME TAX CREDIT A WAGE SUPPLEMENT FOR INDIVIDUALS WHO WORK OUTSIDE THE HOME BUT WHO DO NOT HAVE A SUFFICIENT TAX BURDEN TO BENEFIT FROM AN INCREASE IN THE PERSONAL EXEMPTION FOR CHILDREN IS ANOTHER EFFECTIVE VEHICLE FOR ACCOMPLISHING THE SAME GOAL PRESIDENT CLINTON CALLED FOR INCREASING THE EITC IN HIS STATE OF THE UNION ADDRESS ACKNOWLEDGING THAT PARENTS ARE THE PRIME INGREDIENT IN SECURING HAPPY AND HEALTHY CHILDREN IS NOT TO DENY THERE IS A ROLE FOR GOVERNMENT PROGRAMS IN SUPPORTING PARENTS BUT SUCH PROGRAMS SHOULD EMPHASIZE PARENTAL RESPONSIBILITY RESPECT THE INTEGRITY OF THE FAMILY AND MAXIMIZE PARENTAL CHOICE ONE SUCCESSFUL GOVERNMENT PROGRAM WITH THESE CHARACTERISTICS IS HEAD START A COMPREHENSIVE CHILDDEVELOPMENT PROGRAM FOR LOWINCOME CHILDREN HEAD START HAS ALWAYS STRESSED THAT CHILDREN LIVE WITHIN THE CONTEXT OF A FAMILY AND THAT PARENTS ARE THE PRIMARY EDUCATORS OF THEIR CHILDREN SUCH A PHILOSOPHY HAS LED HEAD START TO REQUIRE EACH PROGRAM TO INSTALL A PARENT POLICY COUNCIL WHICH IN TURN PROVIDES DIRECT OVERSIGHT OF PRESCHOOL PROGRAM ACTIVITIES AND APPROVES ALL STAFFING DECISIONS IN ADDITION PARENTS WITH CHILDREN ENROLLED IN HEAD START ARE ACTIVELY RECRUITED TO PARTICIPATE IN THE PROGRAM RESULTING IN THE STARTLING FACT THAT NEARLY 40 OF PAID STAFF ARE PARENTS OF CURRENT OR FORMERLY ENROLLED CHILDREN IF OUR SOCIETY IS TRULY SERIOUS ABOUT HELPING FAMILIES SPEND MORE TIME BEING FAMILIES THE PRIVATE SECTOR MUST RECOGNIZE ITS ROLE AS WELL FOR FAR TOO LONG BUSINESSES HAVE OPERATED AS IF EMPLOYEES WITH CHILDREN WERE AT BEST A NUISANCE AT WORST A LIABILITY BUSINESS MUST COME TO UNDERSTAND THAT THE FUTURE WORK FORCE IS NURTURED AND SHAPED PRIMARILY BY PARENTS AND THEREFORE IT IS IN BUSINESS'S LONGTERM INTEREST TO SUPPORT EMPLOYEES AS PARENTS THE FEDERAL GOVERNMENT CAN HELP BY ENCOURAGING EMPLOYERS TO DEVELOP CAREER SEQUENCING HOMEBASED WORK STATIONS JOB SHARING FLEXIBLE WORK SCHEDULES PARTTIME EMPLOYMENT AND FAMILY AND MEDICAL LEAVE SO THAT PARENTS CAN FIND MORE TIME TO BE WITH THEIR CHILDREN BUSINESSES SHOULD ALSO BE ENCOURAGED TO DEVELOP A FAMILYRESOURCES OFFICE WHERE EMPLOYEES CAN GAIN INFORMATION ON CHILD DEVELOPMENT AND PARENTING RECEIVE INFORMATION ON COMMUNITY SUPPORT SERVICES AND NEGOTIATE FAMILYFRIENDLY EMPLOYMENT ARRANGEMENTS HOWEVER WASHINGTON SHOULD BE CAREFUL NOT TO EMBRACE A ONE SIZE FITS ALL SOLUTION A CASE IN POINT IS THE FAMILY AND MEDICAL LEAVE ACT A MEASURE THAT WILL PROVIDE VERY LITTLE BENEFIT TO MOST FAMILIES WITH CHILDREN RATHER THAN ASSUMING THAT IT CAN MANDATE FAMILY POLICIES FOR BUSINESS GOVERNMENT SHOULD ENCOURAGE EMPLOYERS THROUGH THE BULLY PULPIT AND THROUGH EXAMPLE TO NEGOTIATE WITH THEIR EMPLOYEES TO DETERMINE WHAT PRACTICES BEST SUIT EMPLOYEES' NEEDS THE BEST PUBLIC POLICY FOR CHILDREN IS ONE THAT RECOGNIZES THAT IT IS NOT GOVERNMENT BUT PARENTS WHO PRODUCE HAPPY HEALTHY AND SECURE CHILDHOODS GOVERNMENT'S PRIMARY ROLE IN CHILDREARING SHOULD BE TO HELP PARENTS FIND THE TIME AND RESOURCES TO RAISE THEIR CHILDREN OTHERWISE WE WILL FOREVER BE CALCULATING THE COST OF CHILDHOODS DENIED MR HORN US COMMISSIONER FOR CHILDREN YOUTH AND FAMILIES FROM 198993 IS AN AFFILIATE SCHOLAR WITH THE INSTITUTE FOR AMERICAN VALUES MUCH OF THIS MATERIAL WAS COVERED IN AN ARTICLE IN THE SPRING ISSUE OF POLICY REVIEW 9305280128 930528 INTEL STIRS UP RESENTMENT IN TAIWAN WITH PATENT MOVE AGAINST PC MAKER BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN TAIWAN'S COMPUTER INDUSTRY IS BEING UNWILLINGLY SWEPT UP IN THE LONGRUNNING LEGAL WAR BETWEEN INTEL CORP AND ITS UPSTART RIVALS FACED WITH THE THREAT OF COURTROOM ACTION IN THE US BY THE SEMICONDUCTOR GIANT TAIWANESE COMPANIES APPEAR TO BE SIDING WITH INTEL'S COMPETITORS WHO HAVE MADE MAJOR INROADS IN THE TAIWANESE MARKET IN THE PAST TWO YEARS INDEED INTEL'S DECISION TO DRAW TAIWANESE MANUFACTURERS INTO THE FRAY HAS CRYSTALLIZED DEEP RESENTMENTS IN THE LOCAL INDUSTRY AGAINST INTEL'S MARKETING TACTICS DURING ITS DOMINANCE OF THE MICROPROCESSOR MARKET ALL THE MANUFACTURERS OF PERSONAL COMPUTERS IN TAIWAN ARE IN GENERAL VERY NERVOUS AS WELL AS VERY UPSET BY INTEL'S ACTIONS SAYS DONALD WENG CHAIRMAN OF THE TAIPEI COUNTY COMPUTER ASSOCIATION THE NERVOUSNESS WAS SPARKED EARLIER THIS MONTH WHEN INTEL FILED A REQUEST WITH THE US INTERNATIONAL TRADE COMMISSION SEEKING AN INVESTIGATION OF A TAIWANESE COMPANY THAT EXPORTS LAPTOP COMPUTERS TO THE US MADE WITH CHIPS DEVELOPED BY ADVANCED MICRO DEVICES INC AND CYRIX CORP THE ACTION WAS TAKEN AGAINST TWINHEAD INTERNATIONAL CORP A CLOSELY HELD COMPUTER MAKER THAT COUNTS AMONG ITS SHAREHOLDERS COMPANIES AFFILIATED WITH TAIWAN'S RULING KUOMINTANG INTEL HAS BEEN INVOLVED IN LENGTHY COURTROOM BATTLES WITH ITS TWO RIVALS OVER THEIR SALES OF CLONES OF INTEL MICROPROCESSORS THE CHIPS THAT FUNCTION AS THE BRAINS OF PERSONAL COMPUTERS THE SANTA CLARA CALIF COMPANY MAINTAINS THAT USE OF THE CLONES BY COMPUTER MANUFACTURERS INFRINGES ON A PATENT COVERING DESIGNS INVOLVING THE INTERACTION OF THE MICROPROCESSORS MEMORY DEVICES AND SPECIFIC TYPES OF SOFTWARE UNTIL INTEL'S ITC ACTION THE LEGAL BATTLE OVER THE PATENT HAD BEEN CONFINED TO COURT CASES IN THE US BETWEEN INTEL AND ITS RIVALS AMD AND CYRIX THE LATEST TURN IN THE DISPUTE REPRESENTS THE FIRST TIME THAT INTEL HAS CHALLENGED A MANUFACTURER THAT SELLS COMPUTERS MADE WITH THE CLONES EARLIER THIS YEAR INTEL BEGAN APPROACHING PC MANUFACTURERS THAT USE THE CLONES ASKING THEM TO PAY A ROYALTY ON EACH COMPUTER SYSTEM THEY SELL THAT CONTAINS A RIVAL'S MICROPROCESSOR INTEL IS ASKING COMPUTER MAKERS TO PAY IT 1 OF THE PRICE THEY CHARGE WHEN COMPUTERS LEAVE THEIR FACTORIES INTEL IS NOT INTERESTED IN LITIGATING AGAINST EVERYBODY SAYS JEFF SIEBACH INTEL'S LEGAL COUNSEL IN ASIA WE'D LIKE TO SEE THEM SIGN THE ROYALTY AGREEMENT AND GET ON WITH BUSINESS BUT WE DO FEEL STRONGLY THAT OUR SHAREHOLDERS DESERVE TO BE COMPENSATED FOR THE DIVIDENDS THEY PASS UP BECAUSE THE AMOUNT OF MONEY WE CHANNEL INTO RESEARCH AND DEVELOPMENT IS SUBSTANTIAL AMD SUNNYVALE CALIF AND CYRIX RICHARDSON TEXAS HAVE BEEN QUICK TO RESPOND BOTH COMPANIES HAVE DISPATCHED OFFICIALS TO TAIWAN TO MEET WITH LOCAL COMPANIES IN AN EFFORT TO SHORE UP ONE OF THEIR MOST IMPORTANT MARKETS IN THE PAST TWO YEARS THE TWO COMPANIES HAVE CAPTURED AS MUCH AS 90 OF THE TAIWANESE MARKET FOR MICROPROCESSORS COMPATIBLE WITH INTEL'S 386 CHIP A PORTION OF THE MARKET THAT'S VERY IMPORTANT TO TAIWANESE COMPANIES STEVE ZELENCIK AN AMD SENIOR VICE PRESIDENT ASSERTS THAT INTEL'S ACTION AGAINST TWINHEAD IS AIMED AT INTIMIDATING TAIWANESE COMPUTER MAKERS AS AMD BEGINS TO MARKET A NEW CHIP THAT COMPETES WITH INTEL'S 486CLASS MICROPROCESSOR SEVERAL TAIWANESE COMPUTER EXECUTIVES WHOSE COMPANIES BUY AMD AND CYRIX PRODUCTS AGREE WITH THAT VIEW AMD HAS ATTEMPTED TO REASSURE LOCAL MANUFACTURERS THAT IT WILL STAND WITH THEM IN THE FACE OF INTEL LEGAL ACTION COMPUTERINDUSTRY EXECUTIVES SAY THE CHIP MAKER HAS OFFERED TO HELP TWINHEAD MEET THE LEGAL COSTS IT WILL FACE IF IT DECIDES TO COUNTER INTEL'S ITC ACTION THE ITC HAS 30 DAYS TO REVIEW INTEL'S REQUEST AND IS DIRECTED BY LAW TO MAKE A DECISION 12 TO 18 MONTHS AFTER AN INVESTIGATION BEGINS WE FELT THIS ITC ACTION WAS REALLY AN ATTACK AGAINST AMD AND AMD IS GOING TO SUPPORT ITS CUSTOMERS SAYS RICHARD H LOVGREN THE COMPANY'S ASSOCIATE GENERAL COUNSEL WE WILL REPRESENT THEM ANYBODY HARASSED BY INTEL IN ANY FORUM TWINHEAD OFFICIALS DECLINED TO BE INTERVIEWED BUT OTHER TAIWANESE EXECUTIVES ARE UPSET BECAUSE THEY BELIEVE IT'S UNPRECEDENTED FOR A CUSTOMER TO BE BROUGHT INTO A PATENT DISPUTE INVOLVING PARTS SUPPLIERS AS A RESULT THERE'S AN EMERGING CONSENSUS IN THE LOCAL INDUSTRY THAT COMPANIES SHOULDN'T PAY THE INTEL ROYALTY LAST WEEK THE TAIPEI COUNTY COMPUTER ASSOCIATION PASSED A RESOLUTION CALLING ON ITS MEMBERSHIP WHICH INCLUDES MANY MAJOR PC MAKERS NOT TO PAY THE FEE EVERYBODY UNDERSTANDS VERY WELL THAT ALL THIS BALONEY IS BETWEEN AMD CYRIX AND INTEL AND SHOULDN'T HAVE ANY IMPACT ON THE CUSTOMERS SAYS MR WENG THE ASSOCIATION'S CHAIRMAN INTEL IS NOT SUPPOSED TO THREATEN ITS CUSTOMERS INTEL REGARDS THE MATTER DIFFERENTLY INSISTING THAT IT ISN'T TRYING TO INTIMIDATE CUSTOMERS TWINHEAD'S SLIMNOTE NOTEBOOK COMPUTER CLEARLY INFRINGED THE PATENT IN INTEL'S VIEW SAYS MR SIEBACH THE INTEL LAWYER WE DON'T THINK THE BEST WAY TO RESOLVE THIS IS BY LITIGATION WE'RE STILL NEGOTIATING WITH TWINHEAD AND WE HOPE TO COME TO AN AGREEMENT ALL THE TALK OF PATENT VIOLATIONS MAKES TAIWAN MANUFACTURERS AND GOVERNMENT OFFICIALS VERY NERVOUS TAIWAN CURRENTLY IS UNDER INTENSE PRESSURE FROM THE US TO IMPROVE ITS PROTECTION OF INTELLECTUALPROPERTY RIGHTS AND CRACK DOWN ON VIOLATORS AMD OFFICIALS AND LOCAL MANUFACTURERS INSIST THAT THE MICROPROCESSOR CASE IS VERY DIFFERENT FROM THE PATENT AND COPYRIGHT ISSUES THE US IS CONCERNED ABOUT BEHIND THE PC MAKERS' OBJECTIONS TO INTEL'S ACTION LIES A DEEPER RESENTMENT OF THE WAY THEY SAY INTEL CONDUCTS ITS BUSINESS INDUSTRY EXECUTIVES COMPLAIN THAT INTEL HAS TAKEN ADVANTAGE OF ITS DOMINANT POSITION IN THE CHIP BUSINESS OVER THE YEARS THEY SAY THE COMPANY OFTEN HAS MADE IT DIFFICULT FOR PC MAKERS PARTICULARLY SMALLER MANUFACTURERS TO OBTAIN CHIPS AND THAT THEY'VE BEEN FORCED TO PAY HIGH PRICES AT TIMES FOR THEIR ORDERS IF THERE'S ANY WAY NOT TO BUY INTEL PRODUCTS PEOPLE WILL WALK AWAY SAYS MR WENG THROUGH THE YEARS THEY'VE ALWAYS TWISTED CUSTOMERS' ARMS THEY MAKE LIMITED ALLOCATIONS OF CHIPS AND FORCE PEOPLE TO BUY OTHER INTEL PRODUCTS A PURCHASING MANAGER FOR ONE OF TAIWAN'S BESTKNOWN COMPUTER MAKERS WHO ASKED NOT TO BE IDENTIFIED BECAUSE HIS COMPANY BUYS INTEL PRODUCTS SAYS THAT INTEL'S ITC ACTION WILL CAUSE SOME COMPANIES TO BE CAREFUL ABOUT THEIR PURCHASES OF COMPETITORS' CHIPS ALTHOUGH HE ESTIMATES THAT AMD'S 486CLASS MICROPROCESSOR COULD TAKE AS MUCH AS 20 OF THE TAIWAN MARKET FOR THAT TYPE OF CHIP BY THE END OF THE YEAR MANUFACTURERS WHO WANT TO OBTAIN INTEL'S NEWEST PENTIUM CHIP MAY FEEL FURTHER CONSTRAINED NOT TO SEEK OTHER SUPPLIERS 9305280127 930528 WHO'S NEWS JACOBSON STORES INC JACOBSON STORES INC JACKSON MICH J RUSSELL FOWLER 75 YEARS OLD FORMERLY CHAIRMAN WAS NAMED CHAIRMAN EMERITUS OF THIS DEPARTMENT STORE CHAIN MARK K ROSENFELD 47 CHIEF EXECUTIVE OFFICER ASSUMED THE ADDITIONAL TITLE OF CHAIRMAN JAMES B FOWLER 46 FORMERLY EXECUTIVE VICE PRESIDENT IN CHARGE OF MARKETING WAS NAMED PRESIDENT PAUL W GILBERT 48 EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED TO THE ADDITIONAL POSITION OF VICE CHAIRMAN 9305280126 930528 WHO'S NEWS PET INC PET INC ST LOUIS ERNST A HABERLI 44 YEARS OLD FORMERLY PRESIDENT OF THE WORLDWIDE MEXICAN FOODS AND INTERNATIONAL GROUP WAS NAMED PRESIDENT FOR INTERNATIONAL WITH RESPONSIBILITIES FOR MEXICAN FOOD DEVELOPMENT AS PART OF A MANAGEMENT RESHUFFLING AT THIS SPECIALTY FOODS COMPANY NAMED GROUP VICE PRESIDENTS WERE A ROBERT BLACK 50 FOR MEXICAN FOODS FRANCIS J FLORIDO 45 FOR PROGRESSO BRANDS AND DANIEL J MCCARTY 41 FOR UNDERWOOD MEATS AND BAKERY PRODUCTS ALL CURRENTLY ARE VICE PRESIDENTS OF THOSE RESPECTIVE SECTORS 9305280125 930528 CREDIT RATINGS GREYHOUND LINES INC DALLAS STANDARD & POOR'S CORP RAISED ITS DEBT RATING ON GREYHOUND'S SENIOR UNSECURED DEBT TO DOUBLEB FROM SINGLEB AND THE SUBORDINATED DEBT RATING TO SINGLEBPLUS FROM SINGLEBMINUS S&P SAID IT REMOVED THE BUS LINE FROM CREDITWATCH WHERE IT WAS PLACED APRIL 2 THE INVESTOR SERVICE SAID THE UPGRADES REFLECT A RECENTLY COMPLETED 81 MILLION COMMON EQUITY OFFERING AND THE SETTLEMENT OF LABOR LITIGATION ABOUT 225 MILLION OF RATED DEBT IS AFFECTED INTERPROVINCIAL PIPE LINE SYSTEM INC EDMONTON ALBERTA STANDARD & POOR'S CORP SAID IT RAISED ITS RATING ON THE INTERPROVINCIAL PIPE LINE INC UNIT'S LONGTERM DEBT OF 330 MILLION CANADIAN DOLLARS US2614 MILLION TO SINGLEAPLUS FROM SINGLEA S&P SAID THE MOVE FOLLOWS THE RECENT CORPORATE REORGANIZATION OF THE PARENT COMPANY WHICH ISOLATED THE STABLE REGULATED PIPELINE OPERATIONS OF IPL FROM THE NONREGULATED ASSETS THE RATING CONTINUES TO BE SUPPORTED BY THE SUBSIDIARY COMPANY'S STRONG MARKET POSITION AND UTILIZATION RATES SUPPORTIVE REGULATORY ENVIRONMENT AND STABLE FINANCES THE NEW YORK RATING CONCERN SAID TANDY CORP FORT WORTH TEXAS STANDARD & POOR'S CORP PLACED ITS DEBT RATINGS OF TANDY CORP AND SOME AFFILIATES ON CREDITWATCH WITH POSITIVE IMPLICATIONS AFTER WEDNESDAY'S ANNOUNCEMENT THAT THE ELECTRONICS RETAILER WAS SELLING ITS PERSONAL COMPUTER MANUFACTURING OPERATIONS ABOUT 165 BILLION IN DEBT IS AFFECTED THE RATING AGENCY SAID THE SALE OF TANDY'S MONEYLOSING COMPUTER MANUFACTURING OPERATIONS TO AST RESEARCH INC WOULD IMPROVE THE COMPANY'S PROFITABILITY EVEN AFTER IT TAKES A 70 MILLION CHARGE FOR THE SALE FURTHER THE SALE OF THE COMPUTER OPERATIONS ALONG WITH THE PLANNED SALE OF TANDY'S MEMTEK O'SULLIVAN AND LIKA MANUFACTURING ASSETS ARE EXPECTED TO YIELD AS MUCH AS 500 MILLION OVER THE NEXT THREE YEARS THAT CAN BE USED TO REDUCE DEBT FINANCE RETAIL OPERATIONS AND REPURCHASE TANDY STOCK S&P SAID THE ACTION AFFECTS TANDY CORP'S SENIOR DEBT RATED SINGLEAMINUS SHELF REGISTRATION DEBT SECURITIES RATED SINGLEAMINUS SUBORDINATED DEBT TRIPLEBPLUS PREFERRED STOCK TRIPLEBPLUS AND COMMERCIAL PAPER SINGLEA2 TANDY CREDIT CORP'S SENIOR DEBT RATED SINGLEAMINUS SHELF REGISTRATION DEBT SECURITIES SINGLEAMINUS AND COMMERCIAL PAPER SINGLEA2 AND TANDY EMPLOYMENT STOCK OWNERSHIP PLAN'S SENIOR NOTES RATED SINGLEAMINUS 9305280124 930528 NORTHWEST WINS LABOR SAVINGS OF 428 MILLION TWO UNIONS AND COMPANY DESCRIBE CONCESSIONS PILOTS ARE HOLDING OUT BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES EXPECTS TO REAP 428 MILLION IN LABOR COST SAVINGS OVER THREE YEARS FROM CONCESSION AGREEMENTS WITH TWO UNIONS BUT ITS GOAL OF ANOTHER 365 MILLION FROM ITS PILOTS UNION IS BY NO MEANS ASSURED YESTERDAY NORTHWEST AND THE MACHINISTS' AND TEAMSTERS UNIONS REVEALED DETAILS OF THEIR HISTORIC AGREEMENT TO HELP SAVE THE STRUGGLING CARRIER MUCH OF THE AGREEMENT THOUGH INCLUDING THE AMOUNT OF CONCESSIONS AND THE TIMING AND FORM OF DEBT RESTRUCTURING IS FAR FROM WHAT THE POWERFUL PILOTS UNION HAS INSISTED ON WHILE NORTHWEST SAYS THE RESCUE PLAN WOULD MAKE IT A STRONGER COMPETITOR IN A TOUGH BUSINESS REJECTION OF A DEAL BY THE PILOTS WOULD ALLOW THE OTHER UNIONS TO BACK OUT OF THEIR DEALS THAT WOULD BE A HUGE BLOW TO NORTHWEST'S HOPES TO STAY OUT OF BANKRUPTCY PROCEEDINGS AS THE CARRIER'S LENDERS WOULD LIKELY ABANDON THEIR TALKS TO DEFER DEBT PAYMENTS IN ADDITION MEMBERS OF THE TWO UNIONS THAT HAVE REACHED PACTS STILL MUST APPROVE THEIR GIVEBACKS 346 MILLION FROM THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND 82 MILLION FROM THE TEAMSTERS AS PREVIOUSLY REPORTED THE AGREEMENT REACHED EARLIER THIS MONTH WOULD GIVE ALL NORTHWEST UNIONIZED EMPLOYEES A 30 EQUITY STAKE PLUS THREE OF 15 BOARD SEATS ALL TOLD NORTHWEST AIMS TO CUT ITS LABOR COSTS BY 886 MILLION OVER THREE YEARS THAT'S DOWN FROM THE 975 MILLION IT REQUESTED WHEN IT WAS TRYING TO CONVINCE LABOR TO SIGN AN AGREEMENT IN MARCH THE LATEST FIGURE INCLUDES 84 MILLION IN SAVINGS FROM MANAGEMENT PERSONNEL AND ANOTHER 9 MILLION FROM SMALLER UNIONS NORTHWEST THE ST PAUL MINN UNIT OF CLOSELY HELD WINGS HOLDINGS INC EMPHASIZED YESTERDAY THAT IT'S STILL NEGOTIATING WITH THE AIR LINE PILOTS ASSOCIATION BUT BEN HIRST SENIOR VICE PRESIDENT AND GENERAL COUNSEL DIDN'T APPEAR TO LEAVE MUCH ROOM FOR COMPROMISE WITH THE PILOTS AS A PRACTICAL MATTER IT WILL BE VERY DIFFICULT TO ALTER EACH UNION'S SHARE OF THE 886 MILLION IN TOTAL SAVINGS HE SAID IF THAT FINAL TOTAL IS ALTERED THAT WOULD AFFECT THE BANK PIECE OF THE DEAL UNDER ITS AGREEMENT WITH THE MACHINISTS AND TEAMSTERS NORTHWEST WILL TRY TO RESCHEDULE DEBT WITH BANKS AND VENDORS TO REDUCE 204 BILLION IN PRINCIPAL DUE FROM 1994 THROUGH 1996 TO A MOREMANAGEABLE 500 MILLION MR HIRST SAID THAT DISCUSSIONS WITH NORTHWEST'S BANKS SO FAR HAVE BEEN VERY PROMISING IF THE COMPANY DOESN'T ACHIEVE THAT DEBT RESTRUCTURING BY THE BEGINNING OF NEXT YEAR THE AGREEMENT CALLS FOR WAGES AND BENEFITS TO RETURN TO CURRENT LEVELS BUT NORTHWEST COULD STILL FACE HIGH HURDLES EVEN IF THE DEBT IS RESTRUCTURED PAYMENTS DUE IN 1997 FOR EXAMPLE WOULD RISE TO 11 BILLION FROM 125 MILLION UNDER THE CURRENT SCHEDULE IT'S HELPFUL BUT IT DOES NOT PUT NORTHWEST OUT OF DANGER PERMANENTLY BY ANY MEANS SAID PHIL BRANNON A JUNK BOND ANALYST AT MABON SECURITIES CORP IN NEW YORK THE PILOTS HAVE SAID THEY WOULD BE WILLING TO MAKE ABOUT 300 MILLION IN CONCESSIONS AND HAVE INSISTED ON SIMULTANEOUS RESTRUCTURING OF THE AIRLINE'S LOANS DETAILS OF THE AGREEMENTS RELEASED YESTERDAY SHOW A COMPLEX BUT INNOVATIVE AGREEMENT THAT INCLUDES SWEETENERS FOR THE UNIONS SUCH AS LIMITS ON LAYOFFS A RETURN TO INDUSTRY PAY LEVELS AFTER THREE YEARS AND MANDATORY REDEMPTION OF THE EMPLOYEES' STOCK AFTER 10 YEARS EMPLOYEES COULD CASH OUT EVEN SOONER IF THE COMPANY GOES PUBLIC TO MEET ANOTHER COMMITMENT TO RAISE AT LEAST 500 MILLION IN NEW EQUITY BY JUNE 1996 WHILE THIS IS NOT A GOOD' AGREEMENT IT MAKES THE BEST OF A BAD SITUATION TEAMSTERS PRESIDENT RON CAREY TOLD THE UNION'S 9000 FLIGHT ATTENDANTS IN A LETTER OUTLINING THE AGREEMENT THE ALTERNATIVE IS OBVIOUS HE ADDED IN A WASHINGTON DC NEWS CONFERENCE YOU'RE FACING BANKRUPTCY IF THE CONCESSIONS ARE MADE BUT THE AIRLINE STILL DOESN'T SURVIVE THE UNIONS WOULD HAVE ONE LAST CONSOLATION IN A LIQUIDATION OF THE COMPANY THEIR NEW CONVERTIBLE PREFERRED STOCK WOULD RANK AHEAD OF SHARES OF PARTOWNERS ALFRED CHECCHI AND GARY WILSON 9305280123 930528 CHEVRON TO SELL NEARLY A THIRD OF US REFINING REVAMPING SENDS STOCK UP BY 44 TO A RECORD 550 MILLION CHARGE SET BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CHEVRON CORP THE US'S LARGEST PETROLEUM REFINER AND MARKETER PUT NEARLY A THIRD OF ITS DOMESTIC REFINING CAPACITY ON THE BLOCK DRASTICALLY PRUNING ITS PROFILE IN OIL PRODUCTS AND EMPHASIZING ITS GULF OF MEXICO AND WEST COAST OPERATIONS THE MOVE WHICH ANALYSTS HAD URGED FOR YEARS SENT THE STOCK JUMPING 375 OR 44 TO 88625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY A RECORD HIGH WHEN ADJUSTED FOR STOCK SPLITS BUT EVEN CHEVRON ACKNOWLEDGED SOME OF THE PROPERTIES MIGHT BE TOUGH TO SELL SAN FRANCISCOBASED CHEVRON SAID IT WILL TAKE A 550 MILLION SECONDQUARTER AFTERTAX CHARGE IN CONNECTION WITH ITS PLANS WHICH INCLUDE THE SALE OF ITS PHILADELPHIA AND PORT ARTHUR TEXAS REFINERIES AND THE DISPOSAL OF HUNDREDS OF COMPANYOWNED GAS STATIONS IN NEARLY A DOZEN STATES EAST OF THE ROCKY MOUNTAINS IN THE PROCESS CHEVRON SAID ITS TOTAL INVESTMENT IN US REFINING AND MARKETING ASSETS WILL DIMINISH BY ABOUT 2 BILLION OVER FIVE YEARS A TOTAL THAT INCLUDES INVESTMENTS THAT WON'T BE MADE IN THE TWO AGING REFINERIES AND RELATED MARKETING SYSTEMS AS WELL AS ASSETS THAT WILL BE WRITTEN DOWN OR SOLD THE TWO REFINERIES HAVE A TOTAL OF 1800 EMPLOYEES CHEVRON OFFICIALS SAID THEY EXPECTED ABOUT 2000 FEWER EMPLOYEES AFTER ASSET SALES AND OTHER CHANGES CHEVRON CURRENTLY HAS ABOUT 10000 EMPLOYEES ACROSS THE US IN ITS REFINING AND MARKETING OPERATIONS CHEVRON'S PLAN REFLECTS BROAD REDIRECTIONS IN AN INDUSTRY BLOATED WITH EXCESS REFINERY CAPACITY SOME OF WHICH MAY SOON BECOME EFFECTIVELY OBSOLETE UNDER INCREASINGLY STRINGENT ENVIRONMENTAL LAWS AND REQUIREMENTS FOR CLEANER GASOLINES IN RECENT YEARS MAJOR REFINERS HAVE GREATLY IMPROVED EFFICIENCIES PUTTING EVER MORE PRESSURE ON COMPETITORS CHEVRON OFFICIALS SAID THAT OPERATIONS SLATED FOR DISPOSAL ACCOUNT FOR 3 BILLION TO 4 BILLION OF ANNUAL REVENUE CHEVRON LAST YEAR HAD NET INCOME OF 157 BILLION OR 463 A SHARE ON REVENUE OF 4143 BILLION THIS IS A STRATEGIC SHIFT IN PORTFOLIO MANAGEMENT AND CAPITAL ALLOCATION SAID JAMES N SULLIVAN CHEVRON'S VICE CHAIRMAN RESPONSIBLE FOR WORLDWIDE REFINING MARKETING AND CHEMICALS OPERATIONS FACED WITH AN UNCERTAIN FUTURE WE'RE TRYING TO HAVE LESS OF OUR MONEY INVESTED IN THE US DOWNSTREAM HE ADDED INDEED CHEVRON HAS BOOSTED INVESTMENTS IN OVERSEAS OIL AND GAS EXPLORATION AND FOREIGN REFINING AND MARKETING OPERATIONS EVEN WHILE PARING BOTH SOCALLED UPSTREAM AND DOWNSTREAM OPERATIONS IN THE US STILL IN THE INDUSTRY RACE TO CUT AGING AND UNPROFITABLE ASSETS THE NATION'S THIRDLARGEST OIL COMPANY HAS BEEN BURDENED BY ASSETS ACQUIRED IN ITS 1984 13 BILLION PURCHASE OF GULF CORP CHEVRON YESTERDAY POINTED TO TWO OF GULF'S FORMER MAJOR REFINERIES IN THE ASSETS IT CHOSE TO SELL LATELY CHEVRON HAS DISPOSED OF CHUNKS OF ITS US CRUDE OIL AND NATURAL GAS PROPERTIES EXITED THE MINING BUSINESS AND TRIMMED PARTS OF REFINING AND MARKETING WORLDWIDE EMPLOYMENT AT ABOUT 44000 IS DOWN FROM 49000 JUST THIS PAST DECEMBER AND 55000 AT THE END OF 1991 EMPLOYMENT WAS 79000 IMMEDIATELY AFTER THE GULF ACQUISITION ALL OF THESE REDUCTIONS IN EMPLOYMENT AND OPERATIONS HAVE HELPED RECENT RESULTS BUT CHEVRON HAS FRUSTRATED OUTSIDERS WITH A SLOW DELIBERATE AND SOMETIMES CONFUSING COURSE ITS PLAN TO SELL THE PORT ARTHUR REFINERY FOR INSTANCE REVERSES A BARELY YEAROLD DECISION TO CUT THE REFINERY'S OUTPUT IN HALF THAT WAS SUPPOSED TO SUFFICE NOW BLUNTER STEPS ARE BEING TAKEN IT'S VERY UNCHEVRONLIKE TO DO SOMETHING THIS DRAMATIC SAID SALOMON BROTHERS ANALYST WILLIAM RANDOL AND MR SULLIVAN SAID THE COMPANY WILL KEEP CUTTING COSTS WHILE PRAISING CHEVRON'S ANNOUNCEMENT ANALYSTS QUESTIONED WHETHER THE COMPANY CAN EASILY SELL TWO REFINERIES IN MARKETS ALREADY GLUTTED WITH SUCH FACILITIES MOREOVER ENVIRONMENTAL LIABILITIES AND CLEANUP COSTS AT REFINERY SITES HAVE REACHED STAGGERING PROPORTIONS AND ARE A MAJOR IMPEDIMENT TO TRANSACTIONS CHEVRON MAY NOT EVEN BE ABLE TO GIVE THE REFINERIES AWAY UNLESS THEY ASSUME THE ENVIRONMENTAL LIABILITIES SAID FREDERICK P LEUFFER JR AN ANALYST AT BEAR STEARNS & CO THE PHILADELPHIA REFINERY HAS A DAILY CRUDE OIL CAPACITY OF 173000 BARRELS AND THE PORT ARTHUR FACILITY'S CAPACITY IS 177000 BARRELS A DAY THERE ISN'T EXACTLY A LONG LINE OF PEOPLE OUT THERE TO BUY REFINERIES AGREED PETER MCCREA VICE PRESIDENT OF SUPPLY AND DISTRIBUTION OF CHEVRON USA PRODUCTS CO THE COMPANY'S DOMESTIC REFINING AND MARKETING ARM CHEVRON'S 550 MILLION CHARGE COULD IN THE LONG RUN BE TOO LITTLE TO REFLECT LOSSES AND COSTS ON THE FACILITIES TO BE SOLD ANALYSTS SPECULATED THE EVENTUAL COST COULD BE SEVERAL TIMES THAT SAID MR LEUFFER IN THE YEARAGO SECOND QUARTER CHEVRON HAD NET INCOME OF 315 MILLION OR 92 CENTS A SHARE REVENUE TOTALED 1054 BILLION THAT YEARAGO NET INCOME INCLUDED RETROACTIVE RESTATEMENT FOR THE ADOPTION OF REVISED ACCOUNTING FOR NONPENSION RETIREMENT BENEFITS CHEVRON SAID ITS PLAN TO DISPOSE OF HUNDREDS OF COMPANYOWNED GAS STATIONS INCLUDE SALES OF STATIONS IN THE CAROLINAS VIRGINIA AND WEST VIRGINIA MARYLAND AND OHIO WHERE THE COMPANY'S MARKET SHARES RUN FROM LESS THAN 1 TO ABOUT 8 THE COMPANY SAID IT PLANS TO SELL THE STATIONS EITHER TO THE CURRENT OPERATORS OR TO INDEPENDENT OIL WHOLESALERS THE STATIONS WOULD CONTINUE TO SELL CHEVRONBRANDED GASOLINE THE SALES WILL MEAN THAT CHEVRON'S DIRECTLY OWNED STATIONS WILL BE CONCENTRATED ON THE WEST COAST WHERE THE COMPANY IS THE NO 2 MARKETER TO ATLANTIC RICHFIELD CO AND IN STATES AROUND THE GULF OF MEXICO INCLUDING FLORIDA ALABAMA MISSISSIPPI LOUISIANA AND TEXAS WHERE CHEVRON HOLDS FROM 10 TO OVER 13 OF THE MARKET MR MCCREA WHO HEADED THE COMPANY GROUP THAT STUDIED DOMESTIC REFINING OPERATIONS AND WHO IS RESPONSIBLE FOR THE ASSET SALES SAID IT IS HOPED THAT THE REFINERIES CAN BE SOLD WITHIN A YEAR HOWEVER HE SAID CHEVRON HASN'T HAD TALKS ABOUT SELLING EITHER REFINERY AND DOESN'T HAVE ANY IMMEDIATE PROSPECTIVE BUYERS SALES OF THE SERVICE STATIONS ARE EXPECTED TO TAKE TWO OR THREE YEARS MR MCCREA SAID UNDER FEDERAL LAW SERVICE STATION OPERATORS MUST BE GIVEN AMPLE NOTICE OF PLANS TO SELL 9305280122 930528 MONEY FUND ASSETS FELL TO 58128 BILLION FOR THE LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS DROPPED BY 1146 BILLION TO 58128 BILLION FROM 59274 BILLION FOR THE WEEK ENDED WEDNESDAY MAY 26 THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 632 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 147 BILLION TO 38859 BILLION THE TRADE GROUP SAID ASSETS OF 396 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 4624 MILLION TO 30850 BILLION ASSETS OF 236 RETAIL TAXEXEMPT FUNDS FELL BY 101 BILLION TO 8009 BILLION ASSETS OF THE 266 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 999 BILLION TO 19269 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 215 TAXABLE MONEY MARKET FUNDS FELL BY 956 BILLION TO 17245 BILLION ASSETS OF 51 TAXEXEMPT FUNDS FELL BY 4299 MILLION TO 2024 BILLION 9305280121 930528 MARKETING & MEDIA GARY GERSH NAMED CEO PRESIDENT OF CAPITOL RECORDS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GARY GERSH A MUSIC INDUSTRY RISING STAR WHO ONCE WORKED IN THE MAILROOM OF CAPITOL RECORDS HAS BEEN NAMED TO LEAD A REVITALIZATION OF THE VENERABLE RECORD LABEL'S SAGGING BUSINESS MR GERSH 37 YEARS OLD WAS NAMED THE NEW CHIEF EXECUTIVE OFFICER AND PRESIDENT OF CAPITOL THE FLAGSHIP LABEL OF EMI MUSIC A UNIT OF LONDONBASED THORN EMI PLC LAST WEEK WHEN MR GERSH RESIGNED AS A DIRECTOR OF ARTIST AND REPERTOIRE AT GEFFEN RECORDS A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC INDUSTRY SPECULATION HAD HIM MOVING TO CAPITOL THE APPOINTMENT IS CONSIDERED BY SOME A BLOW TO GEFFEN WHERE MR GERSH SIGNED OR WORKED WITH SUCH RECENT BIGSELLING AND CRITICALLY ACCLAIMED ROCK ACTS AS NIRVANA SONIC YOUTH AND RICKIE LEE JONES EFFECTIVE JULY 1 MR GERSH WILL OVERSEE ALL OF THE HOLLYWOODBASED CAPITOL RECORDS LABEL OPERATIONS AS WELL AS THE BLUE NOTE JAZZ LABEL AND THE CAPITOL RECORDING STUDIOS CAPITOL'S ARTISTS INCLUDE SOME ONCEHOT BUT NOWCOOLED ACTS SUCH AS HAMMER PAUL MCCARTNEY AND RICHARD MARX THOUGH IT HAS A DISTINGUISHED CATALOG OF ARTISTS INCLUDING FRANK SINATRA AND BONNIE RAITT IT HASN'T HAD MANY NEW ARTISTS RECENTLY TO CRACK THE TOP 100 BILLBOARD CHART CHARLES KOPPELMAN CHAIRMAN AND CHIEF EXECUTIVE OF EMI RECORDS GROUP NORTH AMERICA SAID MR GERSH WAS BEING NAMED TO REVERSE CAPITOL'S RECENT PERFORMANCE WHILE MR KOPPELMAN SAID HE WILL GIVE MR GERSH A NUMBER OF YEARS TO REVITALIZE THE IMAGE AND SUBSTANCE OF CAPITOL HE WANTS CAPITOL TO BE THE FIRST CHOICE OF ARTISTS AND MANAGERS WHICH IT ISN'T NOW MR GERSH SUCCEEDS HALE MILGRIM PRESIDENT OF THE LABEL SINCE 1989 AND CHIEF EXECUTIVE SINCE 1992 CAPITOL SAID MR MILGRIM RESIGNED BECAUSE OF CREATIVE AND PHILOSOPHICAL DIFFERENCES AND WILL PURSUE OTHER INTERESTS MR KOPPELMAN WHO BECAME CHAIRMAN OF THE RECORD GROUP EARLIER THIS YEAR SAID HE DIFFERED WITH MR MILGRIM IN BOTH STYLE AND SUBSTANCE AND WE DIFFERED ON THE KIND OF MIX ON OUR ARTIST ROSTER AS WELL AS THE MARKETING OF ARTISTS MR KOPPELMAN SAID MR MILGRIM IS A WONDERFUL GUY BUT IT JUST WASN'T GOING TO WORK MR KOPPELMAN SAID THAT IN THE LAST FISCAL YEAR SALES AT CAPITOL RECORDS WERE MOST DEFINITELY DISAPPOINTING MR GERSH STARTED WORKING IN A RECORD STORE AT AGE 14 AND THE CAPITOL MAILROOM AT 19 MR GERSH SAID HE HOPED TO BRING A REAL STREET QUALITY BANKING ON ARTISTS WHO DON'T RELY SOLELY ON RADIO PLAY FOR PROMOTION BUT WHO GET GOOD WORD OF MOUTH WE ARE GOING TO GO FOR JUST GREAT MUSIC MR GERSH SAID 9305280120 930528 COMMODITIES SHARPLY WEAKER DOLLAR PROPELS AUGUST GOLD ABOVE RESISTANCE LEVEL TO 38340 AN OUNCE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES BOUNDED 6 HIGHER ON A SHARPLY WEAKER DOLLAR THE SLUMPING US CURRENCY IS ATTRACTING GROWING JAPANESE DEMAND FOR GOLD WHICH IS DENOMINATED IN DOLLARS TRADERS SAID ON NEW YORK'S COMMODITY EXCHANGE THE ACTIVE AUGUST CONTRACT SETTLED ABOVE THE PSYCHOLOGICALLY IMPORTANT 380 RESISTANCE LEVEL AT 38340 AN OUNCE THE HIGHEST CLOSE SINCE JANUARY 1991 THE MOST RECENT SETTLEMENT HIGH ON A NEARTERM GOLD FUTURES CONTRACT WAS 37870 ON MAY 25 TRADERS SAID GOLD'S ABILITY TO CONSISTENTLY BOUNCE BACK FROM MILD CORRECTIONS INCLUDING A 330 SETBACK WEDNESDAY IN THE AUGUST CONTRACT WAS A SIGN THAT THE RECENT RALLY HAS CONSIDERABLY MORE STEAM IN IT THERE'S NOTHING BETWEEN HERE AND 400 IT'S TAKEN OUT ALL THE RESISTANCE SAID IAN MACDONALD CHIEF OF PRECIOUS METALS TRADING AT CREDIT SUISSE IN NEW YORK EVERY TIME GOLD'S RETRACED IT HAS HELD AND THEN RALLIED BACK UP SAID GERARD POLLINO A SENIOR GOLD TRADER AND PARTNER IN MILLENIUM FUTURES GROUP THE DOLLAR'S WEAKNESS AGAINST THE YEN REALLY HAD A LOT TO DO WITH THURSDAY'S MOVE MR POLLINO ADDED WITHOUT THE DOLLAR'S DECLINE HE SAID THE GOLD MARKET MAY HAVE MOVED SIDEWAYS FOR ANOTHER DAY OR TWO BEFORE RESUMING ITS UPWARD TREND THE DOLLAR REACHED A NEW POSTWORLD WAR II LOW AGAINST THE YEN CLOSING AT 10715 YEN THERE WAS FRESH BUYING ALTHOUGH NOT AS HEAVY AS IN THE PAST COUPLE OF WEEKS AND A LOT OF SHORTCOVERING IN EUROPE LAST NIGHT MR POLLINO SAID SHORTCOVERING IS THE PROCESS BY WHICH INVESTORS HOLDING SHORT POSITIONS OR WAGERS THAT GOLD PRICES WILL DECLINE BUY BACK FUTURES CONTRACTS TO CLOSE OUT THEIR POSITIONS LARGESCALE SHORTCOVERING BY BIG INVESTORS SUCH AS COMMODITY FUNDS TENDS TO ADD UPWARD PRICE MOMENTUM TO THE MARKET TRADERS SAID GOLD A TRADITIONAL HEDGE AGAINST INFLATION IS BENEFITING FROM THE SOFTER DOLLAR IN MORE THAN ONE RESPECT A WEAKER US CURRENCY IS STOKING INFLATION CONCERNS IN THE US BECAUSE AS THE DOLLAR FALLS IMPORT PRICES RISE SILVER REBOUNDED STRONGLY FROM A EIGHTCENT DROP ON WEDNESDAY RISING 137 CENTS TO CLOSE AT 470 AN OUNCE ON THE ACTIVE JULY CONTRACT TRADERS SAID THE METAL WAS PUSHED HIGHER AMID THE GENERAL WAVE OF FRESH BUYING INTO PRECIOUS METALS YESTERDAY AT THE COMEX IT WAS ALSO HELPED THEY SAID BY A REPORT RELEASED WEDNESDAY FORECASTING IMPROVING SUPPLY AND DEMAND FUNDAMENTALS THE SILVER INSTITUTE A WASHINGTON DCBASED TRADE GROUP REPRESENTING MINING AND REFINING COMPANIES SAID YESTERDAY THAT DEMAND FOR SILVER COULD EXCEED SUPPLY THIS YEAR BY 1432 MILLION OUNCES UP SHARPLY FROM THE 886 MILLION OUNCE DEFICIT SEEN LAST YEAR IN ITS WORLD SILVER SURVEY 1983 THE SILVER INSTITUTE POINTS OUT THAT OVERALL PRODUCTION IS EXPECTED TO DROP 4 THIS YEAR TO 4818 MILLION OUNCES THE DROP TO WHAT WOULD BE THE LOWEST LEVEL SINCE 1987 IS LARGELY THE RESULT OF MINE CLOSINGS IN MEXICO PERU CANADA AND THE US SAID JEFFREY M CHRISTIAN A PRECIOUSMETALS CONSULTANT AND AUTHOR OF THE SILVER INSTITUTE'S ANNUAL SURVEY SOFT PRICES IN SILVER AND IN SUCH RELATED BASE METALS AS COPPER AND ZINC HAVE LED TO THE ACCELERATION OF MINE CLOSINGS MR CHRISTIAN SAID DEMAND ON THE OTHER HAND HAS DOUBLED IN THAILAND SOUTH KOREA TAIWAN AND HONG KONG COMPARED WITH 1990 LEVELS IN THE REGION HE ADDED PRICE SUPPORT SEEN OVER LONG TERM MR CHRISTIAN SAID THE WIDENING DEFICIT THE FOURTH SHORTFALL IN AS MANY YEARS WILL SUPPORT SILVER PRICES OVER THE LONGER TERM IN THE NEAR TERM EXCESS DEMAND WILL HAVE TO BE MET BY SALES OF SILVER HELD IN INVENTORY INCLUDING SUPPLIES HELD BY INVESTORS HE ADDED THE REPORTED SHORTAGES OF SUPPLY HOWEVER DIDN'T PREVENT A MAJOR DETERIORATION IN SILVER'S PRICE BEGINNING IN THE LATE 1980'S ANALYSTS NOTED WE'VE SEEN REPORTS LIKE THIS FOR SEVERAL YEARS NOW SAID GEORGE MILLINGSTANLEY AN ANALYST WITH SHEARSON LEHMAN BROTHERS INVESTORS HAVE BEEN VERY HAPPY TO UNLOAD INVENTORY TO MORE THAN MAKE UP FOR THE APPARENT SHORTAGE OF SUPPLY THERE'S CERTAINLY NO SHORTAGE OF METAL ON THE MARKET HE ADDED THE SHEARSON ANALYST SAID SILVER WITH ITS RELATIVELY WIDE INDUSTRIAL APPLICATIONS ISN'T LIKELY TO EXPERIENCE A SUSTAINED RALLY UNLESS INDUSTRIAL DEMAND ACCELERATES IN THE CRITICALLY IMPORTANT US AND EUROPEAN MARKETS OTHER ANALYSTS SUGGEST HOWEVER THAT SILVER SIMPLY COULD BE PULLED HIGHER ON THE COATTAILS OF GOLD IN OTHER PRECIOUS METALS FUTURES ACTIVITY YESTERDAY PLATINUM FOR JULY DELIVERY CLIMBED 1040 TO 39920 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE THE METAL A KEY COMPONENT IN CATALYTIC CONVERTERS WAS BEING SNAPPED UP BY JAPANESE BUYERS WHO WERE TEMPTED BY THE WEAKER DOLLARDENOMINATED PRICE PALLADIUM FUTURES PRICES ALSO ROSE AT THE NEW YORK MERC SETTLING 425 HIGHER AT 12340 ON THE ACTIVE DECEMBER CONTRACT IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM PRODUCTS FUTURES CLOSED HIGHER IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE MOSTLY ON TECHNICAL FACTORS AND ATTEMPTS TO STAKE OUT POSITIONS AHEAD OF THE LONG MEMORIAL DAY WEEKEND IN THE US IN ADDITION TRADING WAS HEAVY IN GASOLINE CONTRACTS AS MARKET PARTICIPANTS MOVED OUT OF JUNE CONTRACTS WHICH EXPIRE WITH TODAY'S SESSION JULY CRUDE OIL GAINED 17 CENTS A BARREL TO SETTLE AT 2006 A BARREL AUGUST AND OUTER MONTHS WERE HIGHER AS WELL SOME TRADERS SAID THE INCREASES IN PRODUCTS SIMPLY REPRESENTED A SLIGHT REBOUND FROM WEDNESDAY'S FALL GASOLINE FOR JUNE DELIVERY ROSE 020 CENT TO 5812 CENTS A GALLON WHILE JULY GASOLINE GAINED 032 CENT TO SETTLE AT 5853 CENTS HEATING OIL FOR JUNE WAS UP 027 CENT A GALLON AT 5456 CENTS WITH JULY HEATING OIL HALF A CENT HIGHER SETTLING AT 5502 CENTS NATURAL GAS FUTURES TRADING WAS QUIET WITH THE JULY CONTRACT EDGING UP 18 CENTS PER MILLION BRITISH THERMAL UNITS TO FINISH AT 2104 A MILLION BTUS IS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET OF NATURAL GAS GRAINS AND SOYBEANS PRICES OF CORN WHEAT AND SOYBEAN FUTURES SLIPPED IN LIGHT TRADING AMID PROFITTAKING AND A LACK OF NEW DEVELOPMENTS IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR JULY DELIVERY DECLINED 375 CENTS A BUSHEL TO SETTLE AT 609 A BUSHEL US SOYBEAN PRICES HAD CLIMBED WEDNESDAY ON REPORTS OF FLOODS DISRUPTING THE SOYBEAN HARVEST IN ARGENTINA WHICH IS A MAJOR COMPETITOR OF US SOYBEAN EXPORTS SOYBEAN PRICES WERE ALSO DEPRESSED BY REPORTS THAT MEXICO AND ISRAEL HAVE RECENTLY PASSED ON BUYING SHIPMENTS OF US SOYBEANS 9305280119 930528 ABREAST OF THE MARKET INDUSTRIALS NOTCH ANOTHER RECORD BUT MARKET CLOSES MIXED OVERALL BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE SET ANOTHER RECORD BUT OVERALL THE MARKET MANAGED JUST A MIXED FINISH BIG GAINS IN A HANDFUL OF ECONOMICALLY SENSITIVE ISSUES BUOYED THE INDUSTRIAL AVERAGE WHICH FINISHED WITH A GAIN OF 1467 OR 041 TO 355483 A RECORD HIGH FOR A SECOND STRAIGHT DAY CHEVRON WHICH JUMPED 3 3/4 TO 88 5/8 AND CATERPILLAR WHICH GAINED 2 3/8 TO 72 3/4 TOGETHER ADDED MORE THAN 13 POINTS TO THE INDUSTRIALS CHEVRON WAS LIFTED BY NEWS THAT IT PLANS A RESTRUCTURING BUT ELSEWHERE THE ENGINES THAT LIFTED THE MARKET EARLIER THIS WEEK WERE SPUTTERING THE BOND MARKET WHOSE SHARP RALLY PROPELLED STOCKS WEDNESDAY WAS LITTLE CHANGED TECHNOLOGY STOCKS RECENT LEADERS WITHIN THE EQUITY MARKET WERE WEAK COMPAQ COMPUTER SLIPPED 3/8 TO 58 7/8 HEWLETTPACKARD LOST 1 3/8 TO 84 7/8 ADVANCED MICRO DEVICES FELL 1 TO 29 3/8 AND COMPUTER ASSOCIATES SHED 1 5/8 TO 27 1/2 THE STANDARD & POOR'S 500 STOCK INDEX WHICH STARTED THE DAY LESS THAN THREE POINTS FROM A RECORD HIGH FELL 103 OR 023 TO 45241 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 047 OR 019 TO 24943 WHILE THE DOW JONES EQUITY MARKET INDEX EASED 102 OR 024 TO 42887 ON THE NEW YORK EXCHANGE DECLINERS LED ADVANCERS 998 TO 923 BIG BOARD VOLUME WAS 290880000 SHARES COMPARED WITH 274180000 SHARES WEDNESDAY EDWARD NICOSKI MARKET STRATEGIST AT PIPER JAFFRAY SAID THE PROFITTAKING THAT HIT STOCKS AND IN PARTICULAR THE TECHNOLOGY GROUP WASN'T SURPRISING FOLLOWING THE RECENT GAINS YOU'VE HAD A PRETTY GOOD RUN IN THE MARKET RECENTLY HE SAID MEANWHILE TRADERS SAID THEY WERE AT A LOSS TO EXPLAIN THE STRENGTH IN CYCLICALS MORGAN STANLEY & CO'S CYCLICAL INDEX ROSE 125 OR 046 TO 27567 WHILE THE FIRM'S CONSUMER INDEX SLID 138 OR 070 TO 19584 THE ONLY READING ON THE ECONOMY RELEASED YESTERDAY WAS IN LINE WITH ANALYSTS' FORECASTS THE LABOR DEPARTMENT REPORT SHOWED NO CHANGE LAST WEEK IN THE LEVEL OF INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE TRADERS SAID MANY INVESTORS WERE NERVOUS AHEAD OF THE HOUSE OF REPRESENTATIVES VOTE LAST NIGHT ON PRESIDENT CLINTON'S DEFICIT REDUCTION AND TAX PLANS STOCKS AND BONDS HAVE GAINED RECENTLY IN PART ON HOPE THE PACKAGE WILL BE APPROVED ANALYSTS SAID A DEFEAT FOR THE PRESIDENT COULD SEND BOTH MARKETS TUMBLING CHEVRON JUMPED AFTER THE SAN FRANCISCO OIL AND GAS COMPANY DISCLOSED PLANS TO SHUT SOME REFINING AND RETAILING OPERATIONS NARROWING ITS FOCUS IN THOSE AREAS TO THE WEST SOUTHWEST AND SOUTH THE RESTRUCTURING WILL REQUIRE A SECONDQUARTER CHARGE OF ABOUT 550 MILLION FIELDCREST CANNON JUMPED 2 3/4 TO 26 3/8 AFTER IT RECEIVED AN UNSOLICITED ACQUISITION OFFER FROM SPRINGS INDUSTRIES SPRINGS OFFERED TO BUY THE TEXTILE PRODUCTS COMPANY FOR 2750 A SHARE IN CASH AND STOCK FIELDCREST SAID IT WILL STUDY THE BID BUT SAID IT ISN'T SEEKING A SALE SPRINGS ALSO OFFERED TO ACQUIRE AMOSKEAG CO THE CONTROLLING SHAREHOLDER OF FIELDCREST IN OVERTHECOUNTER TRADING AMOSKEAG SURGED 4 3/4 TO 35 1/4 MEANWHILE SPRINGS LOST 1 1/2 TO 47 1/4 IN COMPOSITE BIG BOARD TRADING MORGAN STANLEY JUMPED 2 3/4 TO 66 AFTER THE NEW YORK SECURITIES COMPANY POSTED FIRSTQUARTER EARNINGS OF 240 A SHARE UP FROM 162 A SHARE A YEAR AGO AND ABOVE THE 172 A SHARE MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM SEPARATELY IT AGREED TO SELL SWEETHEART A FOOD SERVICE PRODUCTS MAKER TO AN INVESTMENT GROUP STUDENT LOAN MARKETING ASSOCIATION SKIDDED 2 1/4 TO 45 SMITH BARNEY HARRIS UPHAM & CO WAS SAID TO CUT ITS RATING ON THE STOCK TO HOLD FROM BUY FOUR NEW ISSUES TRADED ACTIVELY AMONG THEM MARK CENTERS TRUST OF KINGSTON PA CLOSED AT 19 5/8 UP FROM ITS 1950 A SHARE PRICING FILA HOLDINGS AN ITALIAN SPORTSWEAR MAKER ENDED AT 18 1/2 UP FROM 18 TRINET CORPORATE REALTY A REAL ESTATE INVESTMENT TRUST FINISHED AT 23 3/4 DOWN FROM 2425 AND HEALTHCARE REALTY TRUST A NASHVILLE TENN REIT CLOSED AT ITS 1950 OFFERING PRICE PRECIOUS METALS PRODUCERS WERE STRONG HOMESTAKE MINING ROSE 1 1/2 TO 19 1/4 PLACER DOME ADDED 3/8 TO 17 5/8 HECLA MINING INCREASED 3/4 TO 13 5/8 AND NEWMONT MINING ADVANCED 1 7/8 TO 52 1/4 SYNTEX JUMPED 1 TO 20 3/8 THE PALO ALTO CALIF DRUG COMPANY POSTED NET INCOME OF 18 CENTS A SHARE FOR THE THIRD QUARTER ENDED APRIL 30 COMPARED WITH 56 CENTS A SHARE A YEAR AGO THE LATEST QUARTER THOUGH INCLUDED 48 CENTS A SHARE IN RESTRUCTURING CHARGES 9305280118 930528 HEARD ON THE STREET NATIONAL MEDIA FAMED FOR TV SALES PITCHES LATE AT NIGHT KEEPS HOLDERS IN DARK OVER SUIT BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NATIONAL MEDIA SEEMS TO DO A BETTER JOB SELLING STUFF ON THOSE INCESSANT TV INFOMERCIALS THAN IN COMMUNICATING WITH ITS OWN SHAREHOLDERS ANY INSOMNIAC OR TELEVISION ADDICT PROBABLY HAS SEEN AMAZING DISCOVERIES THE LATENIGHT SERIES OF 30MINUTE COMMERCIALS THAT PUSH AMAZING CAR WAXES HAIRSTYLING KITS AND EXERCISE VIDEOS THE SHOW'S HOST MIKE LEVEY WON AN AWARD FOR BEST INFOMERCIAL PERFORMANCE FOR SUCH STUNTS AS USING A BLOWTORCH TO FRY EGGS ON A FRESHLY WAXED CAR HOOD AMAZING THREE WEEKS AGO NATIONAL MEDIA WAS SUED FOR ALLEGED BREACH OF CONTRACT AND FRAUD BY THE COMPANY THAT PRODUCES THE INFOMERCIALS WHICH ARE DESIGNED TO LOOK LIKE TALK SHOWS COMPLETE WITH GAWKING STUDIO AUDIENCES THIS IS OF MORE THAN PASSING INTEREST BECAUSE THE COMPANY DOING THE SUING CLOSELY HELD POSITIVE RESPONSE MARKETING INC IS RUN BY THE SHOW'S HOST AND PRODUCES ABOUT HALF OF NATIONAL MEDIA'S REVENUE SO EVEN IF THE SUIT DOESN'T HAVE MERIT THE LITIGATION IS BAD NEWS THAT SHOWS A SOURED RELATIONSHIP WITH AN IMPORTANT BUSINESS PARTNER SO WOULDN'T YOU EXPECT A PUBLICLY TRADED COMPANY WHICH IS REQUIRED TO DISCLOSE MATERIAL EVENTS TO ANNOUNCE THE FILING OF THE SUIT NATIONAL MEDIA DOESN'T THINK SO WE HAVE NOT TALKED TO OUR SHAREHOLDERS IN A PUBLIC ANNOUNCEMENT BECAUSE WE DON'T BELIEVE IT'S A MATERIAL EVENT SAYS A NATIONAL MEDIA SPOKESMAN IN PHILADELPHIA TO WHICH SHAREHOLDERS MIGHT RESPOND AMAZING EVEN MORE AMAZING PERHAPS IS THAT THIS QUESTIONABLE DECISION ABOUT DISCLOSURE COMES AT A TIME WHEN NATIONAL MEDIA HAS ANNOUNCED PLANS TO OFFER ABOUT TWO MILLION MORE COMMON SHARES THE COMPANY IS PREPARING OFFERING DOCUMENTS FOR THAT STOCK SALE LATE YESTERDAY THE NATIONAL MEDIA SPOKESMAN CALLED BACK TO ADD THAT THE SUIT ISN'T MATERIAL BECAUSE HIS COMPANY WILL DEFINITELY WIN AND ONCE IT DOES WIN HE ADDS WE BELIEVE WE CAN WORK WITH MICHAEL AGAIN NATIONAL MEDIA DECLINES TO DISCUSS THE DETAILS OF THE SUIT TO WHICH ITS LAWYERS HAVEN'T YET RESPONDED BUT THE SUIT FILED BY POSITIVE RESPONSE IN FEDERAL COURT IN LOS ANGELES CLAIMS THAT IT AND NATIONAL MEDIA ARE 5050 PARTNERS IN AMAZING DISCOVERIES BUT THAT NATIONAL MEDIA FALSELY REGISTERED THE NAME AND INTENDS TO USE IT FOR SHOWS WITHOUT MR LEVEY THE SUIT ALSO CLAIMS THAT NATIONAL MEDIA OWES IT MORE THAN 37 MILLION IN ROYALTIES ON THE SALES OF SUCH AMAZING PRODUCTS AS THE JUICE TIGER AND THE HUMAN CALCULATOR A MATH AID PEOPLE CAN MAKE FUN ALL THEY WANT ABOUT SUCH PRODUCTS BUT THEY SELL PEOPLE CLOSE TO BOTH COMPANIES SAY THAT MR LEVEY'S OPERATION IS RESPONSIBLE FOR ABOUT HALF OF NATIONAL MEDIA'S 314 MILLION IN CUMULATIVE REVENUE FOR THE FISCAL YEARS 1991 AND 1992 AND THE FIRST NINE MONTHS OF FISCAL 1993 THE SUIT DEMANDS AN INJUNCTION BARRING NATIONAL MEDIA FROM USING THE AMAZING DISCOVERIES NAME WITHOUT MR LEVEY'S PERMISSION NATIONAL MEDIA COULD OF COURSE CONTINUE TO MAKE INFOMERCIALS WITH DIFFERENT TITLES AS IT DOES ALREADY BUT THE AMAZING DISCOVERIES MONICKER SEEMS TO BE MAGIC MEANWHILE POSITIVE RESPONSE HAD BETTER WATCH ITSELF TOO IT SOON MAY HAVE TO DEAL WITH SIMILAR PUBLICDISCLOSURE ISSUES THE COMPANY HAS IDEAS ABOUT DOING AN INITIAL PUBLIC OFFERING OF ITS OWN NEXT YEAR PROGRAM TRADING ONCE REVILED AS A STOCK MARKET CANCER SEEMS HEADED FOR ANOTHER BUSY MONTH AS EXPECTED THE LATEST WEEKLY PROGRAMTRADING DATA RELEASED BY THE NEW YORK STOCK EXCHANGE YESTERDAY SHOWED THAT THE COMPUTERGUIDED TRADING ACTIVITY HAS RETURNED TO RECORD LEVELS THE DATA SHOWED THAT LAST WEEK'S PROGRAM TRADING BOOSTED BY MONTHLY EXPIRATION OF STOCK INDEX OPTIONS AND FUTURES ACCOUNTED FOR 164 OF OVERALL BIG BOARD VOLUME THAT MEANS THAT THE MONTH OF MAY WILL PROBABLY BE THE THIRD IN A ROW IN WHICH PROGRAM TRADING HAS AVERAGED 30 MILLION OR MORE SHARES DAILY AND AT LEAST 12 OF OVERALL VOLUME BUT MOST INVESTORS DON'T COMPLAIN ABOUT SUCH THINGS WHEN THE MARKET'S GOING GOOD 9305280117 930528 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FILA HOLDINGS SPA AN INITIAL OFFERING OF 75 MILLION ADR SHARES BY GEMINA INVESTMENTS SA A UNIT OF GEMINA SPA VIA SALOMON BROTHERS PANAMSAT LP AND PANAMSAT CAPITAL CORP AN OFFERING OF 635 MILLION OF NOTES VIA DONALDSON LUFKIN AND JENRETTE SECURITIES CORP AND BEAR STEARNS & CO PENN CENTRAL CORP A PREVIOUSLY ANNOUNCED SECONDARY OFFERING OF FOUR MILLION COMMON SHARES TO BE SOLD BY AMERICAN FINANCIAL ENTERPRISES INC AN 83OWNED UNIT OF AMERICAN FINANCIAL CORP VIA FIRST BOSTON CORP PUEBLO XTRA INTERNATIONAL INC AN OFFERING OF 200 MILLION OF SENIOR NOTES DUE 2003 VIA MORGAN STANLEY & CO TRANSAMERICAN WASTE INDUSTRIES INC AN OFFERING OF 14 MILLION OF 10 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 VIA DH BLAIR & CO 9305280116 930528 HOTELMORTGAGE LOAN SALE BY RTC GETS BIG PROCEEDS WASHINGTON THE RESOLUTION TRUST CORP SAID IT SOLD A PORTFOLIO OF HOTELMORTGAGE LOANS FOR 2081 MILLION OR ABOUT 60 OF THE 3542 MILLION BOOK VALUE REALIZING ITS LARGESTEVER GROSS PROCEEDS FROM SUCH A SALE THE THREE POOLS OF 47 NONPERFORMING AND SUBPERFORMING MORTGAGE LOANS WERE SOLD TO ASHFORD FINANCIAL CORP DALLAS WHICH OWNS AND MANAGES HOTELS ASHFORD TEAMED WITH THE FISHER & GETTY GROUP WHICH CONSISTS OF THE FISHER FAMILY AND THE J PAUL GETTY TRUST BOTH OF NEW YORK THE SALE ATTRACTED 21 BIDS FROM 11 DIFFERENT BIDDERS AS PART OF THE TRANSACTION THE RTC WILL RECEIVE 20 OF THE NET PROFIT ON THE SALE OF ANY OF THE HOTELS SAID STEPHEN ROTH PRESIDENT OF SECURED CAPITAL CORP AN RTC FINANCIAL ADVISER BASED IN LOS ANGELES THE ASSETS ARE SECURED BY 69 HOTELS WITH 10524 ROOMS NATIONWIDE JACK KEESE A VICE PRESIDENT OF SECURED CAPITAL SAID ASHFORD PLANS TO OPERATE THE HOTELS 9305280115 930528 BANKING INDUSTRY FINDS ITSELF EMBROILED IN FLAP OVER SCOPE OF DEPOSIT INSURANCE BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BANKING INDUSTRY'S EFFORT TO DEFLECT A PROPOSED FEE IS TURNING INTO A BATTLE OVER THE SCOPE OF DEPOSIT INSURANCE PITTING BANKS AGAINST EACH OTHER AND THE INDUSTRY AGAINST THE TREASURY AND FEDERAL RESERVE BOARD THE QUARREL IS OVER HOW THE FEDERAL DEPOSIT INSURANCE CORP SHOULD DEAL WITH UNINSURED DEPOSITORS THOSE WITH ACCOUNTS OF MORE THAT 100000 WHEN BANKS FAIL ONE POTENTIAL CONFLICT IS WHETHER BANKS SHOULD BE REQUIRED TO PAY DEPOSIT INSURANCE PREMIUMS ON FOREIGN DEPOSITS A CHANGE THAT WOULD HURT MAJOR BANKING COMPANIES SUCH AS CITICORP JP MORGAN & CO AND BANKERS TRUST NEW YORK CORP THE PROBLEM BEGAN WHEN THE CLINTON ADMINISTRATION SUBMITTED ITS BUDGET IN FEBRUARY IT PROPOSED TO RAISE 13 BILLION OVER THE NEXT FIVE YEARS BY REQUIRING THE FDIC TO CHARGE ABOUT 7000 STATECHARTERED BANKS FOR THEIR ANNUAL EXAMINATIONS BANKS AND THEIR TRADE GROUPS RALLIED AND CONVINCED THE HOUSE BANKING COMMITTEE TO KILL THE PROPOSED FEE BUT BUDGET RULES REQUIRED THE COMMITTEE TO MAKE UP THE LOST REVENUE WHICH IT DID BY COBBLING TOGETHER SEVERAL MEASURES IN A PACKAGE THAT HAS JUST ABOUT EVERYONE INVOLVED UPSET THE MOST SIGNIFICANT CHANGE WOULD ALTER THE WAY THE FDIC PAYS DEPOSITORS OF FAILED BANKS ANOTHER CHANGE WOULD REQUIRE THE FED TO TRANSFER 213 MILLION FROM ITS SURPLUS TO THE TREASURY THE SENATE BANKING COMMITTEE WAS ON THE VERGE OF ADOPTING THE PACKAGE YESTERDAY WHEN THE CLINTON ADMINISTRATION CAME OUT AGAINST THE PLAN SENDING TREMORS THROUGHOUT THE BANKING INDUSTRY THE HOUSE PACKAGE PROPOSES TO SAVE THE GOVERNMENT MONEY BY ENACTING A NATIONWIDE DEPOSITOR PREFERENCE LAW THAT WOULD MANDATE THAT DEPOSITORS BOTH INSURED AND UNINSURED IN A FAILED BANK GET PAID BEFORE OTHER CREDITORS CURRENTLY WHEN A BANK FAILS THE FDIC PROTECTS ALL DEPOSITS UP TO 100000 THE AGENCY THEN TRIES TO RECOVER THOSE COSTS WHEN IT LIQUIDATES THE BANK BUT THE FDIC AS RECEIVER STANDS ON EQUAL FOOTING WITH UNINSURED DEPOSITORS AND OTHER CREDITORS A DEPOSITOR PREFERENCE LAW CHANGES THE STANDING OF CLAIMANTS AFTER A BANK FAILS IT WOULD MEAN THAT THE FDIC AS A RECEIVER TRYING TO RECOUP THE COST OF THE PROTECTING INSURED DEPOSITORS AND UNINSURED DEPOSITORS WOULD GET PAID FIRST THIS IS GOOD NEWS FOR THE GOVERNMENT BECAUSE IT WOULD INCREASE RECOVERIES FOR THE FDIC AND IT'S GOOD NEWS FOR UNINSURED DEPOSITORS WHO WOULD TAKE LESS OF A LOSS ON THE PORTION OF THEIR DEPOSITS OVER 100000 BUT IT WOULD HURT OTHER CREDITORS BY REDUCING THE MONEY THEY WOULD GET THESE CREDITORS INCLUDE UNSECURED LENDERS TO THE BANK HOLDERS OF LETTERS OF CREDIT AND POSSIBLY PARTICIPANTS IN SWAP AGREEMENTS AND OTHER SOCALLED FINANCIAL DERIVATIVES AS A RESULT SOME LARGE BANKS WORRY THAT DEPOSITOR PREFERENCE MIGHT INCREASE THE COST OF THESE FASTGROWING CONTINGENT LIABILITIES THE ADMINISTRATION IS ALSO UPSET IT ARGUES THAT DEPOSITOR PREFERENCE WOULD VIOLATE THE SPIRIT OF A 1991 BANKING LAW THAT PUTS UNINSURED DEPOSITORS AT GREATER RISK AS PART OF AN EFFORT TO MAKE THEM MORE SENSITIVE TO THE FINANCIAL SOUNDNESS OF THEIR BANKS INSTEAD THE ADMINISTRATION PROPOSES A PREFERENCE THAT WOULD PUT THE FDIC'S CLAIM AGAINST THE FAILED BANK FIRST THIS WOULD SHARPLY INCREASE THE MONEY THE AGENCY RECOVERS FOR PROTECTING INSURED DEPOSITORS BUT REDUCE THE AMOUNT AVAILABLE TO COVER UNINSURED DEPOSITS OVER 100000 AND OTHER CREDITORS SMALL BANKS ATTACKED THE PROPOSAL WHICH WAS SPELLED OUT IN A LETTER TO SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE D MICH FROM FRANK NEWMAN UNDERSECRETARY OF THE TREASURY AND CHRISTOPHER EDLEY AN ASSOCIATE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET WE FEEL THAT THE OMBTREASURY PROPOSAL AGGRAVATES DEPOSIT INSURANCE INEQUITIES BETWEEN LARGE AND SMALL BANKS SAID KENNETH GUENTHER EXECUTIVE VICE PRESIDENT OF THE INDEPENDENT BANKERS ASSOCIATION A GROUP OF COMMUNITY BANKS ANY CHANGE THAT REDUCES PAYMENTS TO UNINSURED DEPOSITORS WHO USUALLY RECOVER MOST OF THEIR BALANCES ABOVE 100000 WHEN A BANK FAILS WORRIES SMALL BANKERS THEY FEAR THAT BIG DEPOSITORS WOULD MOVE THEIR FUNDS TO LARGE BANKS WHICH THE GOVERNMENT CONSIDERS TOO BIG TO FAIL WITHOUT DESTABILIZING THE FINANCIAL SYSTEM SOME LARGE BANKS SAY THE ADMINISTRATION PLAN COULD INCREASE THEIR COSTS OF FUNDING AND THEY FEAR IT WOULD MAKE SOME OF THEIR UNINSURED DEPOSITORS AND OTHER CREDITORS MORE NERVOUS ABOUT THE AMOUNT THEY WOULD RECOVER IN A FAILURE THE INDEPENDENT BANKERS ASSOCIATION IS PUSHING ANOTHER ALTERNATIVE TO THE EXAMINATION FEE THEY WANT BANKS TO PAY DEPOSIT INSURANCE PREMIUMS ON FOREIGN AS WELL AS DOMESTIC DEPOSITS THIS PROPOSAL WHICH HAS STRONG SUPPORT FROM SMALL BANKS HAS BEEN REJECTED REPEATEDLY BY THE ADMINISTRATION AND CONGRESS 9305280114 930505 REVIEW & OUTLOOK EDITORIAL RACE AND BLOOD MANY PEOPLE ARE STRUGGLING TO UNDERSTAND WHAT IS GOING ON IN BOSNIA HERE'S SOME HELP BUT IT'S NOT VERY PLEASANT READING YOU MAY HAVE SEEN THAT THE PRESIDENT OF SRI LANKA WAS BLOWN UP OVER THE WEEKEND VIOLENCE HAS TAKEN A HIGH TOLL IN THE BEAUTIFUL COUNTRY ONCE KNOWN AS CEYLON AT LEAST 23 OTHERS WERE KILLED IN THE ATTACK ON PRESIDENT RANASINGHE PREMADASA THE OPPOSITION LEADER WAS KILLED THE WEEK BEFORE IN OCTOBER 182 MUSLIMS WERE SHOT OR HACKED TO DEATH BY ETHNIC TAMIL MILITANTS AT LEAST 17000 PEOPLE HAVE BEEN KILLED SINCE THE TAMIL INSURGENCY BEGAN IN 1983 IN SRI LANKA THE POLITICS OF RACE HAS GONE MAD INDEED THE SUCCESSIVE TRAGEDIES THAT HAVE VISITED A COUNTRY THAT WAS ONCE KNOWN AS A MODEL DEMOCRACY DESERVES MUCH THOUGHT FROM THOSE WHO WOULD PROMOTE RIGHTS AND JOBS ON THE BASIS OF RACE FIRED BY A LONGSIMMERING SENSE OF GRIEVANCE THE LIBERATION TIGERS OF TAMIL EELAM HAVE PRESSED FOR 10 YEARS THEIR BLOODY FIGHT FOR AN INDEPENDENT HOMELAND IN THE NORTH AND EAST OF THE ISLAND OF SRI LANKA IT IS NOT CERTAIN THAT THE TAMIL TIGERS WERE RESPONSIBLE FOR THE DEATH OF MR PREMADASA SATURDAY BUT THE TAMIL GRIEVANCES DERIVE FROM THE POLICIES OF ETHNIC PREFERENCE THAT SRI LANKA ESTABLISHED SOON AFTER ITS INDEPENDENCE IN 1948 AT THAT TIME SRI LANKA THEN CEYLON WAS AN OASIS OF STABILITY PEACE AND ORDER WROTE SRI LANKA HISTORIAN KM SILVA MORE IMPORTANT ONE SAW VERY LITTLE OF THE DIVISION AND BITTERNESS WHICH WERE TEARING AT THE RECENT INDEPENDENCE OF THE SOUTH ASIAN COUNTRIES IN 1956 WITH THE ELECTION OF SOLOMON DIAS BANDARANAIKE ALL THAT CHANGED THOUGH HE GREW UP AS AN ENGLISHSPEAKING CHRISTIAN MR BANDARANAIKE BECAME A CRUSADER FOR PREFERENTIAL TREATMENT FOR THE 75 SINHALESE BUDDHIST MAJORITY AS PRIME MINISTER HE MADE SINHALESE THE OFFICIAL LANGUAGE LIMITED UNIVERSITY OPPORTUNITIES FOR NONSINHALESE AND GENERALLY POLARIZED SRI LANKAN SOCIETY ON ETHNIC GROUNDS SUCCEEDING GOVERNMENTS TOOK OVER CHRISTIAN SCHOOLS FORCED MANY TAMILS OUT OF THE CIVIL SERVICE AND ELIMINATED THE SECTION OF THE CONSTITUTION THAT GUARANTEED MINORITY RIGHTS RACE RIOTS BECAME A RECURRING PHENOMENON THE TAMILS' RESPONSE TO BEING MADE INFERIOR CITIZENS OF THE COUNTRY THAT MANY OF THEIR FAMILIES HAD LIVED IN FOR GENERATIONS WAS INITIALLY MODERATE BUT AS THEIR GRIEVANCES GREW SO DID THEIR ANGER THE FINAL RESULT WAS THE EMERGENCE OF THE TIGERS WHOSE FANATICISM AND WILLINGNESS TO COMMIT THE MOST DEPRAVED ACTS OF VIOLENCE HAS WON THEM COMPARISONS TO PERU'S SHINING PATH GUERRILLAS THE GOVERNMENT'S HEAVYHANDED APPROACH IN DEALING WITH THE TAMILS WHICH APPEARED TO INCLUDE RANDOM KILLING AND CASUAL TORTURE HAS FURTHER DEEPENED DIVISIONS MR PREMADASA ELECTED PRESIDENT IN 1988 CURBED SOME OF THE NASTIER ASPECTS OF SINHALESE PREFERENCE AND TRIED TO NEGOTIATE WITH THE TIGERS HE WON RESPECT FOR TRYING TO REIN IN HUMANRIGHTS ABUSES BY THE SECURITY FORCES AND FOR STAYING THE COURSE OF A TOUGH ECONOMICREFORM PROGRAM BEGUN IN 1989 A BOMB KILLED HIM RACE AND ETHNICITY IN OUR TIME HAVE BECOME A FASCINATING SUBJECT THEY ARE SAID TO BE A SOURCE OF GREAT PRIDE BUT THEY ARE ALSO DEMONSTRABLY A SOURCE OF BITTER AND SEEMINGLY ENDLESS RETRIBUTION SEE RELATED LETTER LETTERS TO THE EDITOR WHY THE TAMILS FIGHT LIKE TIGERS WSJ MAY 28 1993 9305050076 YY93 MM05 9305280113 930528 BUSINESS BRIEF NAVISTAR SAYS JUDGE APPROVED SETTLEMENT OF RETIREE BENEFITS DAYTON OHIO NAVISTAR INTERNATIONAL CORP SAID A FEDERAL JUDGE APPROVED A SETTLEMENT BETWEEN THE COMPANY ITS PAST AND PRESENT EMPLOYEES RETIREES AND UNIONS OVER RETIREE HEALTHCARE AND LIFE INSURANCE BENEFITS THE SETTLEMENT REACHED IN DECEMBER WILL PROVIDE RETIREES WITH MODIFIED HEALTHCARE AND LIFE INSURANCE BENEFITS FOR LIFE RETIREES WILL BE REQUIRED TO SHARE IN THE COST OF THEIR MEDICAL BENEFITS THROUGH PREMIUMS DEDUCTIBLES AND COPAYMENTS THE LOSSPLAGUED TRUCK MAKER SAID NAVISTAR WILL SET UP TWO TRUSTS TO PAY RETIREE MEDICAL COSTS UNDER THE SETTLEMENT ONE A BASEPLAN TRUST WILL PAY RETIREE MEDICAL COSTS AND BE A VEHICLE OF FUTURE FUNDING OF THE BASE HEALTHCARE PROGRAM THE OTHER A SUPPLEMENTAL TRUST WILL ALLOW RETIREES TO REDUCE THEIR COSTS OR IMPROVE THEIR BENEFITS THROUGH THE SALE OF STOCK HELD BY THE TRUST AND PROFITSHARING CONTRIBUTIONS MADE TO THE TRUST IF NAVISTAR ACHIEVES CERTAIN PROFIT LEVELS NAVISTAR SAID THAT UNDER THE NEW RETIREE HEALTH PLAN ITS LIABILITY FOR US RETIREE HEALTH AND LIFE INSURANCE WILL FALL TO 1 BILLION FROM 26 BILLION AS PART OF THE SETTLEMENT NAVISTAR PLANS TO ISSUE ABOUT 255 MILLION SHARES TO THE SUPPLEMENTAL TRUST AND EVENTUALLY SELL MORE SHARES TO PREFUND AS MUCH AS 500 MILLION OF THE BASE PLAN TRUST THE COMPANY SAID THAT BECAUSE THE SETTLEMENT INVOLVES THE ISSUANCE OF NEW STOCK AND AMENDMENTS TO ITS CORPORATE CHARTER IT REQUIRES SHAREHOLDER APPROVAL NAVISTAR SAID IT TENTATIVELY PLANS TO HOLD A SPECIAL SHAREHOLDER MEETING THIS SUMMER TO SEEK THEIR APPROVAL OF THE SETTLEMENT THE COMPANY ALSO SAID IT WOULD SEEK HOLDER APPROVAL FOR A 1FOR10 REVERSE STOCK SPLIT IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY NAVISTAR FELL 125 CENTS TO 275 9305280112 930528 INTERNATIONAL MEXICAN LOBBIES FOR NAFTA SPEND 25 MILLION IN US WASHINGTON MEXICAN INTERESTS HAVE SPENT 25 MILLION IN THE US NEGOTIATING AND PROMOTING THE PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT ACCORDING TO A SURVEY BY THE CENTER FOR PUBLIC INTEGRITY THE LOBBYING WATCHDOG GROUP ESTIMATES THAT THE MEXICAN GOVERNMENT AND BUSINESS WILL SPEND ANOTHER 5 MILLION TO 10 MILLION BY THE END OF THE YEAR CHARLES LEWIS EXECUTIVE DIRECTOR OF THE CENTER CALLED THOSE ESTIMATES CONSERVATIVE THE FIGURES ARE CULLED FROM RECORDS AT THE JUSTICE DEPARTMENT MR LEWIS ESTIMATED THAT MEXICO HAS HAD ON ITS PAYROLL 33 FORMER US GOVERNMENT OFFICIALS HE ALSO IDENTIFIED 48 CONGRESSIONAL STAFFERS WHO HAVE TAKEN TRIPS TO MEXICO PAID FOR BY A MEXICAN BUSINESS ALLIANCE CALLED COECE THE ALLIANCE HAS SAID IT PAID FOR 76 SUCH TRIPS THE CENTER DIDN'T ESTIMATE HOW MUCH OPPONENTS OF THE TRADE ACCORD ARE SPENDING ON LOBBYING CAMPAIGNS BUT THE REPORT SAID THAT AT A RECENT LUNCH TEXAS BILLIONAIRE ROSS PEROT INDICATED THAT HE WOULD BE WILLING TO SPEND 25 MILLION ON TELEVISION ADVERTISING IF THE AGREEMENT'S SUPPORTERS SPENT THAT MUCH MR PEROT PLANS HIS FIRST TV COMMERCIAL ON THE NAFTA THIS SUNDAY 9305280111 930528 SPRINGS INDUSTRIES BIDS FOR FIELDCREST AND ITS CONTROLLING HOLDER AMOSKEAG BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL SPRINGS INDUSTRIES INC SAID IT MADE PROPOSALS TO FIELDCREST CANNON INC AND TO THE TEXTILE COMPANY'S CONTROLLING SHAREHOLDER AMOSKEAG CO TO ACQUIRE ALL THE SHARES OUTSTANDING OF BOTH COMPANIES FOR ABOUT 345 MILLION IN CASH AND STOCK FIELDCREST REACTED COOLLY SAYING ITS BOARD WOULD REVIEW THE UNSOLICITED OFFER BUT NOTING THE COMPANY IS NOT FOR SALE ITS POSITION HOWEVER MAY BE AT ODDS WITH THAT OF THE DUMAINES TRUST WHICH CONTROLS BOTH AMOSKEAG AND FIELDCREST AND WHICH IN JANUARY TOOK STEPS TO SELL ITS INVESTMENTS IN BOTH AMOSKEAG YESTERDAY ACKNOWLEDGED IT HAD RECEIVED SPRINGS' OFFER BUT DECLINED COMMENT SOME WALL STREET ANALYSTS PREDICTED OTHER FIELDCREST SUITORS MAY EMERGE THERE'S A GOOD POSSIBILITY THIS IS JUST THE OPENING SALVO SAID DENNIS ROSENBERG AN ANALYST WITH BUCKINGHAM RESEARCH GROUP INC IN NEW YORK AMONG OTHER THINGS THERE IS WIDESPREAD SPECULATION IN THE INDUSTRY AND ON WALL STREET THAT FIELDCREST MANAGEMENT LED BY JAMES M FITZGIBBONS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MAY BE PREPARING A BID MR FITZGIBBONS DIDN'T RETURN TELEPHONE CALLS SPRINGS A MAKER OF HOME FURNISHINGS AND OTHER TEXTILE PRODUCTS OFFERED TO PAY 2750 A SHARE IN CASH AND CLASS A STOCK OR ABOUT 330 MILLION FOR SHARES IN FIELDCREST BASED IN EDEN NC SPRINGS BASED IN FORT MILLS SC SAID IT ALSO OFFERED 35 A SHARE OR ABOUT 115 MILLION FOR THE 33 MILLION SHARES OUTSTANDING OF AMOSKEAG IF SPRINGS BUYS BOTH FIELDCREST AND AMOSKEAG THE PRICE WOULD TOTAL ABOUT 345 MILLION SINCE SOME 36 MILLION SHARES OF FIELDCREST STOCK TOTALING ABOUT 100 MILLION AT THE OFFERING PRICE WOULD ALREADY BE INCLUDED IN ITS AMOSKEAG PURCHASE AMOSKEAG BASED IN BOSTON CONTROLS 807 OF THE VOTING POWER OF FIELDCREST AND 301 OF THE CAPITAL STOCK THROUGH ITS 36 MILLION SHARES OF FIELDCREST'S CLASS B SHARES AMOSKEAG'S ASSETS ALSO INCLUDE THE BANGOR & AROOSTOOK RAILROAD CO IN BANGOR MAINE AND UNDEVELOPED NEW ENGLAND REAL ESTATE SPRINGS SAID IT ENVISIONS IN BOTH INSTANCES PAYING ONETHIRD IN CASH AND THE BALANCE IN ITS CLASS A COMMON STOCK SPRINGS ALSO SAID IT MIGHT INCREASE ITS OFFER FOR AMOSKEAG ONCE IT PERFORMS A DUEDILIGENCE REVIEW IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FIELDCREST SHARES CLOSED AT 26375 UP 275 OR 12 SPRINGS FELL 150 TO 4725 IN NATIONAL OVERTHECOUNTER TRADING AMOSKEAG SHARES JUMPED 475 OR 16 TO 3525 AMOSKEAG AN INVESTMENT CONCERN THAT HAS CONTROLLED FIELDCREST FOR 40 YEARS SAID IN JANUARY THAT ITS OWN PRINCIPAL SHAREHOLDER THE DUMAINES TRUST WAS REVIEWING ITS INVESTMENT IN AMOSKEAG WITH A VIEW TO A POSSIBLE REDUCTION OR LIQUIDATION THE TRUST RETAINED SMITH BARNEY HARRIS & UPHAM TO HELP IT ASSESS ITS OPTIONS FIELDCREST A TOWEL AND BEDDING CONCERN THAT ALSO HAS CARPET OPERATIONS GAVE NO TIMETABLE FOR RESPONDING TO THE OFFER FIELDCREST SAID IT WOULD ALSO BE EVALUATING REGULATORY MATTERS SPRINGS WHOSE MARKET SHARE IN SHEETS AND PILLOWCASES IS ESTIMATED TO EXCEED 30 MAY FACE SOME POTENTIAL ANTITRUST ISSUES IN ACQUIRING FIELDCREST WHICH WOULD RAISE THAT SHARE TO THE MID40 RANGE SPRINGS SAID ITS PROPOSALS ARE CONTINGENT ON THE RESOLUTION OF ANY REGULATORY ISSUES BUT ADDED IT BELIEVES ANY SUCH ISSUES COULD BE RESOLVED IT ALSO SAID ANY TRANSACTION WOULD BE SUBJECT TO THE COMPLETION OF DUE DILIGENCE AND OF DEFINITIVE AGREEMENTS AS FOR ANY FIELDCREST SUITOR A PRIMARY CONSIDERATION IS THE COMPANY'S HIGHLY LEVERAGED BALANCE SHEET FIELDCREST ACQUIRED BIGELOWSANFORD INC AND CANNON MILLS CO IN THE 1980S AND LATER HAD TO SUSPEND ITS DIVIDEND IN THE FACE OF SLOWED BUSINESS AND WEAKENED CASH FLOW MORE RECENTLY UNDER THE MANAGEMENT OF MR FITZGIBBONS FIELDCREST HAS BEEN CUTTING EXPENSES AND CAPITAL EXPENDITURES AND PAYING DOWN ITS DEBT AT THE END OF 1992 FIELDCREST'S TOTAL DEBT STOOD AT 378 MILLION COMPARED WITH 451 MILLION A YEAR EARLIER ANY POTENTIAL BUYER WILL ALSO BE CONFRONTING AN UNSETTLED LABOR SITUATION AT FIELDCREST IN APRIL THE AMALGAMATED CLOTHING AND TEXTILE WORKERS UNION REJECTED A CONTRACT SAYING IT WANTED ANY NEW CONTRACT TO ENSURE JOB SECURITY IN THE EVENT OF A TAKEOVER LAST WEEK THE UNION STAGED A TWODAY UNFAIRLABORPRACTICE STRIKE PROMPTED BY THE COMPANY'S DISMISSAL OF A UNION LEADER THE UNION FILED SUIT IN FEDERAL COURT IN NEW YORK YESTERDAY ALLEGING THAT FIELDCREST AND THE TRUSTEES OF DUMAINES MISLED THE COMPANY'S SHAREHOLDERS BY DENYING THAT MANAGEMENT AND OUTSIDE PARTIES WERE ENGAGED IN A BIDDING CONTEST FOR CONTROL OF THE COMPANY FIELDCREST AMOSKEAG AND DUMAINES OFFICIALS COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY 9305280110 930528 RJR NABISCO NAMES HARPER TO TOP POSTS CONAGRA CHAIRMAN TAPPED TO SUCCEED GERSTNER VON DER HEYDEN QUITS BY EBEN SHAPIRO AND RICHARD GIBSON STAFF REPORTERS OF THE WALL STREET JOURNAL RJR NABISCO HOLDINGS CORP NAMED CHARLES M HARPER CHAIRMAN OF CONAGRA INC CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE FOOD AND TOBACCO COMPANY RJR HAS BEEN OPERATING WITH COCHAIRMEN SINCE LOUIS V GERSTNER JR RESIGNED ABRUPTLY IN MARCH TO TAKE THE TOP SPOT AT INTERNATIONAL BUSINESS MACHINES CORP IN THE WAKE OF THE APPOINTMENT ONE OF THE COCHAIRMEN KARL VON DER HEYDEN RESIGNED THE OTHER LAWRENCE R RICCIARDI WAS NAMED PRESIDENT IN OMAHA CONAGRA NAMED PHILIP B FLETCHER 59 YEARS OLD TO SUCCEED MR HARPER MR FLETCHER CURRENTLY PRESIDENT OF CONAGRA AND MR HARPER'S HANDPICKED HEIR SUCCEEDED MR HARPER AS CHIEF EXECUTIVE OFFICER LAST SUMMER IN AN INTERVIEW MR HARPER 65 SAID HENRY KRAVIS WHOSE INVESTMENT FIRM CONTROLS RJR CONTACTED HIM ABOUT THE JOB SEVERAL MONTHS AGO THE EXECUTIVES KNOW EACH OTHER FROM CONAGRA'S 1990 ACQUISITION OF BEATRICE CO FROM THE FIRM KOHLBERG KRAVIS & ROBERTS CO THIS ISN'T THE FIRST TIME MR HARPER HAS CONSIDERED THE RJR POST IN AN INTERVIEW IN 1990 HE SAID MR KRAVIS HAD DISCUSSED THE POSITION WITH HIM BUT HE DECLINED FOR WHAT HE SAID WERE CONCERNS ABOUT CONAGRA HOLDERS AN IMPOSING 6FOOT6 EXECUTIVE MR HARPER IS CREDITED WITH BUILDING CONAGRA INTO A 20 BILLION POWERHOUSE WITH INTERESTS RANGING FROM FROZEN FOODS TO COOKING OILS A FORMER HEAVY SMOKER MR HARPER RENOUNCED CIGARETTES AFTER SUFFERING A HEART ATTACK IN 1985 AS HE EMBRACED A STRICT DIET MR HARPER CONJURED UP THE NOTION OF HEALTHY FOODS AND BECAME THE DRIVING FORCE BEHIND HEALTHY CHOICE BRAND FOODS NOW ONE OF CONAGRA'S PREMIER BRANDS RETAIL SALES THIS YEAR ARE EXPECTED TO EXCEED 1 BILLION ALTHOUGH THE BLOOM SEEMS TO BE OFF THE CONCEPT PARTICULARLY IN FROZEN DINNERS NEVERTHELESS HEALTHY CHOICE'S POPULARITY SPAWNED AT LEAST A DOZEN OTHER BRANDS NAMED HEALTHY INDUSTRY ANALYSTS WERE STUNNED BY THE ANNOUCEMENT THE SOAP OPERA AT RJR NABISCO CONTINUES SAID JOHN MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INC LEAVE IT TO HENRY KRAVIS TO DO THE DRAMATIC THING ALTHOUGH RJR IS HIRING A PROVEN MONEY MAKER IN MR HARPER THE CONSTANT MANAGEMENT TURMOIL AT RJR IS DISTURBING TO SOME ANALYSTS AT THE TIME OF MR GERSTNER'S DEPARTURE RJR INSISTED THE COCHAIRMEN ARRANGEMENT WAS FOR THE LONG TERM BUT INVESTORS WIDELY EXPECTED RJR TO EVENTUALLY GO OUTSIDE THE COMPANY AND NAME AN EXECUTIVE WITH EXPERIENCE RUNNING CONSUMERPRODUCTS BUSINESSES THE RESIGNATION OF MR VON DER HEYDEN IS CONSIDERED A BLOW TO RJR NABISCO THE RESPECTED FORMER CHIEF FINANCIAL OFFICER PLAYED A KEY ROLE IN CUTTING RJR'S DEBT LOAD IN HALF TO ABOUT 14 BILLION AND HIS DEPARTURE COMES ON THE HEELS OF THE RESIGNATION OF TOP NABISCO EXECUTIVE ELLEN MARRAM WHO LEFT RECENTLY TO TAKE A TOP POST AT SEAGRAM CO YOU WANT MORE CONTINUITY SAID MR MCMILLIN OF PRUDENTIAL GIVEN THE ACCLAIM MR HARPER RECEIVED FOR INTRODUCING THE HEALTHY CHOICE LINE SOME WERE SURPRISED THAT HE WENT TO WORK FOR A CIGARETTE MAKER MR HARPER WILL BE HARDPRESSED TO COME OUT WITH A HEALTHY CHOICE CIGARETTE SAID PHIL SOKOLOF HEAD OF THE NATIONAL HEART SAVERS ASSOCIATION A NONPROFIT GROUP THAT HAS PRAISED CONAGRA'S EFFORTS TO REDUCE FAT CONTENT IN FOOD ASKED HIS FEELING ON TAKING OVER A TOBACCO COMPANY MR HARPER SAID OBVIOUSLY IT'S NOT A MATTER OF GREAT CONCERN TO ME OTHERWISE I WOULDN'T BE DOING WHAT I'M DOING 9305280109 930528 A FRENCH LESSON FOR CLINTON BY JOHN H FUND FRANCE TOOK A GIANT STEP TOWARD A TRULY MODERN FREEMARKET ECONOMY THIS WEEK WITH THE ANNOUNCEMENT THAT 21 OF ITS LARGEST STATEOWNED COMPANIES INCLUDING RENAULT AND AIR FRANCE WILL BE PRIVATIZED AND THROWN OPEN TO FOREIGN OWNERSHIP CONSERVATIVE PRIME MINISTER EDOUARD BALLADUR IS CONTINUING A RETREAT FROM STATISM BEGUN A DECADE EARLIER BY SOCIALIST PRESIDENT FRANCOIS MITTERRAND WITH HIS OWN ECONOMIC PROGRAM STILL ON POLITICAL LIFE SUPPORT BILL CLINTON MIGHT DO WELL TO FOLLOW MR MITTERRAND'S EXAMPLE TEN YEARS AGO THE FRENCH LEADER CUT HIS LOSSES AND RESCUED HIS REGIME WITH A DRAMATIC POLICY UTURN AFTER HIS AMBITIOUS PROGRAM OF ECONOMIC INTERVENTION COLLAPSED PRESIDENT CLINTON LIKES TO PORTRAY HIMSELF AS A MODERN FDR WHO BUILT A NEW POLITICAL COALITION THROUGH ECONOMIC POPULISM INSTEAD EVEN HIS OWN PARTY WOULD NOW SETTLE FOR THE PERFORMANCE STANDARDS OF JIMMY CARTER BUT IT'S CLEAR THAT MR CLINTON'S PROBLEMS GO BEYOND COMPETENCE TO QUESTIONS OF IDEOLOGY HE IS TRYING TO GOVERN A MODERATE TO CONSERVATIVE COUNTRY WITH CLASS WARFARE THEMES AND LEFTLIBERAL SOCIAL VALUES SAYS MICHAEL BARONE COAUTHOR OF THE ALMANAC OF AMERICAN POLITICS THAT SIMPLY WON'T WORK IN SHORT IT'S THE IDEAS STUPID IN THE EARLY 1980S MR MITTERRAND DISCOVERED HE COULDN'T IMPLEMENT SOCIALISM IN ONE COUNTRY IN A WORLD OF GLOBAL INTERCONNECTED MARKETS HE REVERSED COURSE AND HAS SINCE MANAGED TO STAY IN OFFICE ALTHOUGH HIS SOCIALIST PARTY WAS CRUSHED IN ELECTIONS LAST MARCH WINNING ONLY 18 OF THE VOTE OF COURSE PRESIDENT CLINTON'S MAMMOTH TAX INCREASES AREN'T THE SAME THING AS THE NATIONALIZATIONS THE SOCIALISTS CARRIED OUT WHICH LEFT 30 OF THE FRENCH ECONOMY IN THE HANDS OF THE STATE STILL MR CLINTON SHOULD NOTE THE EERIE PARALLELS BETWEEN WHAT IS HAPPENING TO HIM AND WHAT BEFELL MR MITTERRAND THE FRENCH SOCIALISTS TOOK POWER IN MAY 1981 AFTER LONG YEARS IN THE POLITICAL WILDERNESS JUST LIKE THE US DEMOCRATIC PARTY THEY WERE EAGER TO MAKE UP FOR LOST TIME AND IMPOSE THEIR IDEOLOGY ON SOCIETY GOVERNMENT MINISTRIES WERE STOCKED WITH YOUNG BUREAUCRATS FROM WELLOFF FAMILIES WHO HAD ADOPTED A FASHIONABLE SOCIALIST MINDSET IN THE 1960S THESE GILDED YOUTHS REJECTED THE BOURGEOIS VALUES OF THEIR PARENTS AND WERE CONTEMPTUOUS OF THE PRIVATE SECTOR THEY LAUNCHED AN ECONOMIC PROGRAM THAT BILL CLINTON WOULD EASILY RECOGNIZE TOPPING THE LIST WAS A SPECIAL SURTAX ON THOSE EARNING HIGH INCOMES COMBINED WITH THE CREATION OF 250000 JOBS THROUGH PUBLICWORKS SPENDING A PROGRAM SIMILAR TO MR CLINTON'S ILLFATED STIMULUS PACKAGE OIL COMPANIES WERE HIT WITH A NEW TAX ON PROFITS ENERGY TAXES WERE RAISED THE GOVERNMENT ADOPTED A KEYNESIAN FISCAL MODEL OF PUMPPRIMING SPENDING AND EASIER CREDIT MR MITTERRAND SAID HIS GOAL WAS TO REDUCE INEQUITIES IN FRENCH SOCIETY AND STRIKE A BLOW FOR FAIRNESS INSTEAD THE PROGRAM QUICKLY STIMULATED A STEEP DROP IN THE VALUE OF THE FRANC AND GOLDHOARDING BY CITIZENS THIS YEAR IN THE US THE DOLLAR'S VALUE HAS FALLEN AND GOLD PRICES ARE UP NEARLY 20 ONLY WEEKS AFTER MR MITTERRAND'S PROGRAM WAS ANNOUNCED JACQUES DELORS THE LEVELHEADED FINANCE MINISTER WAS PRIVATELY COUNSELING HIM TO IGNORE HIS MORE DOCTRINAIRE LEFTWING ADVISERS LIKE JACQUES ATTALI AND EDITH CRESSON AND MODERATE HIS COURSE SOME FRENCH WAGS ARE ALREADY CALLING ROBERT REICH AND HILLARY RODHAM CLINTON THEIR COUNTERPARTS IN THE US BY DECEMBER 1981 MR DELORS WAS OPENLY ACCUSING OTHER MINISTERS OF SPEAKING THREE KILOMETERS AWAY FROM REALITY PERHAPS LLOYD BENTSEN SHOULD CONSULT WITH MR DELORS AT HIS EUROPEAN COMMUNITY OFFICE IN BRUSSELS NOW RATHER THAN LATER AT FIRST MR MITTERRAND IGNORED MR DELORS AND LIKE MR CLINTON INSISTED ON A SPEEDY ENACTMENT OF HIS PROGRAM BOTH MEN BELIEVED BUSINESS ANXIETIES WOULD BE CALMED ONCE THE RULES OF THE GAME WERE KNOWN BUT IN FRANCE CONDITIONS ONLY WORSENED CAPITAL FLIGHT BEGAN AND BUSINESSES STARTED TALKING ABOUT RELOCATING IN OTHER COUNTRIES SOME 50000 DOCTORS AND OTHER PROFESSIONALS MARCHED IN THE STREETS OF PARIS TO PROTEST POSSIBLE CONTROLS ON THEIR FEES EMBOLDENED UNIONS BEGAN STAGING STRIKES A YEAR AFTER TAKING OFFICE THE MITTERRAND GOVERNMENT BEGAN SCALING BACK ITS INTERVENTIONIST PROGRAM AND IN MARCH 1983 IT REVERSED COURSE AFTER SUFFERING SEVERE LOSSES IN LOCAL ELECTIONS THE DEMOCRATIC PARTY MAY EXPERIENCE A SIMILAR SHOCK NEXT MONTH IF TEXAS SEN BOB KRUEGER LOSES IN A LANDSLIDE TO THE GOP IN JULY 1983 MR MITTERRAND GAVE A MEMORABLE INTERVIEW KNOWN AS THE CONFESSION IN IT HE ADMITTED HIS POLICIES HAD BEEN BASED ON SERIOUS MISCONCEPTIONS WE PERHAPS DREAMED A LITTLE IT IS TRUE IN 1981 HE SAID SO ENDED FRANCE'S EXPERIMENT WITH CLASS WARFARE AND SOCIALISM MR MITTERRAND'S POLICY SHIFT DIDN'T STOP FRANCE'S CONSERVATIVES FROM TAKING PARLIAMENTARY POWER IN 1986 BUT HIS CENTRIST POLICIES ENABLED HIS SOCIALIST PARTY TO MAKE A COMEBACK TWO YEARS LATER NONETHELESS THEY DID NOT BLOCK THE GROWING MOMENTUM TOWARD FREER MARKETS IN FRANCE THAT CULMINATED IN THIS WEEK'S DRAMATIC PRIVATIZATION PROGRAM SIMILARLY MR CLINTON HAS A FUNDAMENTAL CHOICE TO MAKE HE CAN SWIM WITH THE WORLDWIDE TIDE TOWARD LOWER TAX RATES AND ECONOMIC FREEDOM OR HE CAN FIGHT IT AND GAMBLE THAT HE WON'T GO UNDER IN A SEA OF CRITICISM MR FUND IS A WRITER ON THE JOURNAL'S EDITORIAL PAGE 9305280108 930528 WHO'S NEWS GIDDINGS & LEWIS INC TAPS COPPOLA TO BE CHAIRMAN AND CHIEF FOND DU LAC WIS GIDDINGS & LEWIS INC SAID IT NAMED JOSEPH R COPPOLA AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SUCCEEDING WILLIAM J FIFE JR WHO WAS ASKED TO RESIGN LATE LAST MONTH MR COPPOLA 62 YEARS OLD CURRENTLY SENIOR VICE PRESIDENT MANUFACTURING SERVICES OF COPPER INDUSTRIES INC HOUSTON HAS BEEN A DIRECTOR OF THIS MACHINETOOL CONCERN SINCE 1989 CLYDE H FOLLEY A 65YEAROLD DIRECTOR AND FORMER INGERSOLLRAND CO VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER WHO HAS SERVED AS CHAIRMAN AND CHIEF EXECUTIVE SINCE MR FIFE'S RESIGNATION SAID THE BOARD CHOSE MR COPPOLA BECAUSE OF HIS EXTENSIVE EXPERIENCE IN MANUFACTURING AND HIS KNOWLEDGE OF BOTH THE COMPANY AND THE MACHINETOOL BUSINESS AS REPORTED MR FIFE 56 RESIGNED AFTER DIRECTORS BECAME UNCOMFORTABLE WITH SEVERAL FINANCIAL TRANSACTIONS BETWEEN MR FIFE AND THE COMPANY THE POST IS EFFECTIVE JULY 1 9305280107 930528 WHO'S NEWS WR GRACE CO WR GRACE CO BOCA RATON FLA JEANLOUIS GREZE 61 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF THIS SPECIALTY CHEMICALS COMPANY MR GREZE MOST RECENTLY WAS SENIOR VICE PRESIDENT IN HIS NEW POSITION MR GREZE WILL OVERSEE THE COMPANY'S PACKAGING BUSINESSES GRACE ALSO NAMED ROBERT H BEBER EXECUTIVE VICE PRESIDENT AND ROBERT B LAMM AND DAVID B SIEGEL COPORATE VICE PRESIDENTS MR BEBER 59 CONTINUES AS GRACE'S GENERAL COUNSEL AND MR LAMM 46 CONTINUES AS SECRETARY MR SIEGEL 44 BECOMES DEPUTY GENERAL COUNSEL HE HAD BEEN ASSOCIATE GENERAL COUNSEL 9305280106 930528 WHO'S NEWS SHEARSON BRINGS BACK FORMER CHAIRMAN AS VICE CHAIRMAN HOWARD CLARK REJOINS FIRM TWO MONTHS AFTER LEAVING SEVERANCE TO BE RETURNED BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN HOWARD L CLARK JR RESIGNED FROM SHEARSON LEHMAN BROTHERS INC TWO MONTHS AGO HE DIDN'T TOTALLY CLEAN OUT HIS FILES NOW HE WON'T HAVE TO THE AMERICAN EXPRESS CO UNIT SAID MR CLARK HAS BEEN REHIRED AS VICE CHAIRMAN OF LEHMAN BROTHERS SHEARSON'S INVESTMENTBANKING AND TRADING DIVISION WITH THE REUNION THE FORMER SHEARON LEHMAN CHAIRMAN WILL HAVE TO GIVE BACK A SEVERANCE PACKAGE OF ABOUT 22 MILLION THAT HE RECENTLY RECEIVED THE RETURN OF MR CLARK MARKS A CURIOUS TURNABOUT EVEN IN AN INDUSTRY KNOWN FOR ITS SUDDEN MANAGEMENT MOVES HAILED AS MR FIXIT THE SOFTSPOKEN MR CLARK 49 YEARS OLD RAN SHEARSON FOR NEARLY THREE YEARS BEFORE BEING DEMOTED IN JANUARY TO SHEARSON VICE CHAIRMAN BY JAMES ROBINSON III THENAMERICAN EXPRESS CHAIRMAN MR CLARK'S REHIRING STUNNED ANALYSTS AND OTHERS ON WALL STREET IT'S BIZARRE SAID GUY MOSZKOWSKI AN ANALYST AT SANFORD C BERNSTEIN & CO AFTER MR CLARK'S HUMILIATING DEMOTION I DON'T KNOW HOW THEY RECONCILED SO QUICKLY MR MOSZKOWSKI SAID MR CLARK DECLINED TO COMMENT BUT A SENIOR LEHMAN OFFICIAL SAID MR CLARK CERTAINLY HAS GIVEN SOME THOUGHT TO HOW OTHERS MIGHT VIEW HIS DECISION TO JOIN THE FIRM GIVEN ALL THAT'S HAPPENED WHAT LEHMAN SEES IN MR CLARK IS HIS SENIOR CORPORATE CONTACTS IN THE US AND OVERSEAS AND HIS ABILITY TO BRING IN NEW INVESTMENTBANKING BUSINESS INDEED MR CLARK ESTABLISHED MANY OF LEHMAN'S CURRENT INVESTMENTBANKING RELATIONSHIPS IN A STATEMENT LEHMAN SAID MR CLARK WILL PLAY A CENTRAL ROLE IN DEVELOPING AND ENHANCING ITS CORPORATE AND INSTITUTIONAL RELATIONSHIPS WORLDWIDE AMONG THOSE WHO HAD REPORTED TO MR CLARK IN HIS PAST LIFE AT THE FIRM WAS RICHARD S FULD JR SHEARSON LEHMAN'S CURRENT PRESIDENT THE FIRM'S CHAIRMAN POST IS VACANT NOW MR CLARK WILL REPORT TO MR FULD IT IS UNUSUAL THAT A VICE CHAIRMAN REPORTS TO A PRESIDENT BUT MR CLARK WOULDN'T HAVE RETURNED TO THE FIRM AT A TITLE LOWER THAN WHEN HE LEFT PEOPLE FAMILIAR WITH LEHMAN SAID IT ISN'T CLEAR WHAT MR CLARK WILL BE PAID IN HIS NEW POST HE HAD BEEN AMONG THE HIGHEST PAID EXECUTIVES AT AMERICAN EXPRESS IN 1992 MR CLARK RECEIVED A COMPENSATION PACKAGE OF MORE THAN 36 MILLION IN CASH AND LONGTERM INCENTIVE PAYOUTS IN MARCH AMERICAN EXPRESS AGREED TO SELL ITS SHEARSON BROKERAGE OPERATIONS TO PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO UNIT FOR ABOUT 115 BILLION THE REMAINING FIRM WILL BE RENAMED LEHMAN BROTHERS INC WHEN THE DEAL IS CLOSED WHICH IS EXPECTED IN JULY 9305280105 930528 MARKETING & MEDIA MGM'S STANFILL IS EXPECTED TO RESIGN AS COCHAIRMAN LOS ANGELES METROGOLDWYNMAYER INC WAS EXPECTED TO ANNOUNCE THAT DENNIS STANFILL COCHAIRMAN AND COCHIEF EXECUTIVE OFFICER WOULD RESIGN THE MOVIE PRODUCTION COMPANY WHICH WAS HOLDING A DIRECTORS MEETING IN PARIS IS 985 OWNED BY FRENCH STATEOWNED BANK CREDIT LYONNAIS SA MR STANFILL 65 YEARS OLD IS A LONGTIME ENTERTAINMENT EXECUTIVE WHO WAS CHAIRMAN OF THE TWENTIETH CENTURY FOX FILM CORP DURING THE 1970S HE WAS BROUGHT INTO MGM IN JANUARY 1992 TO HELP REORGANIZE THE COMPANY WHICH HAD BEEN LEFT IN DISARRAY BY CASH SHORTAGES AND BITTER LITIGATION WITH ITALIAN FINANCIER GIANCARLO PARRETTI MR STANFILL HELPED MGM DIVEST ITS TELEVISION OPERATIONS AND TRIM DOWN TO WHAT ESSENTIALLY NOW IS A FILM PRODUCTION AND EXHIBITION FIRM BUT MR STANFILL'S DEPARTURE HAD BEEN A SOURCE OF HOLLYWOOD SPECULATION EVER SINCE MGM'S NEXT TASK SELLING THE COMPANY FELL TO CREATIVE ARTISTS AGENCY THE TALENT AGENCY THAT CREDIT LYONNAIS RETAINED AS AN ADVISER IN APRIL MOREOVER WHAT FUNDING THE BANK IS PROVIDING SEEMS TO BE FOCUSED MORE ON MOVIE MAKING THAN THE KIND OF DEALMAKING MR STANFILL WAS RETAINED TO DO ALAN LADD JR IS EXPECTED TO REMAIN AS CHAIRMAN AND CHIEF EXECUTIVE AND CHARLES MEEKER AS PRESIDENT 9305280104 930528 BOOKSELLERS SHELVE GLOOM EXPECT HITS BUT SMALL STORES TO BRING ANXIETY TO CONVENTION BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL BOOKSELLERS ARE COMING TO THEIR ANNUAL CONVENTION THIS WEEKEND IN MIAMI WITH ROSY EXPECTATIONS FOR THEIR INDUSTRY AND FORECASTS OF SOME BIG SUMMER HITS BUT THE OVERALL CHEER ISN'T SHARED BY SMALL INDEPENDENT BOOKSTORES THREATENED BY RAPIDLY GROWING DISCOUNT CHAINS DATA FROM THE DEPARTMENT OF COMMERCE SHOWED A 125 INCREASE IN BOOK SALES IN 1992 FOLLOWED BY A 20 RISE IN THE FIRST TWO MONTHS OF 1993 SAYS BERNARD RATH EXECUTIVE DIRECTOR OF THE AMERICAN BOOKSELLERS ASSOCIATION BUSINESS IS EXCELLENT SAYS PHYLLIS GRANN CHAIRMAN OF PUBLISHER PUTNAM BERKLEY A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC I'VE BEEN TALKING DOOM AND GLOOM FOR A LONG TIME BUT I THINK THE RECESSION IS FINALLY OVER EVERY AREA HERE FROM CHILDREN'S BOOKS TO MASSMARKET PAPERBACK HAS PICKED UP SINCE THE YEAR STARTED AND PUTNAM SEEMS DESTINED TO HAVE A GREAT SUMMER SINCE THE KING OF TECHNOTHRILLERS TOM CLANCY HAS A NEW BOOK OUT IN AUGUST WITHOUT REMORSE BOOKSELLERS ARE EXPECTING THAT TO BE ONE OF THIS SUMMER'S BIG BEACH BOOKS ALONG WITH SCOTT TUROW'S PLEADING GUILTY WHICH JUST LANDED IN STORES IN AN EARLY INDICATOR THE TUROW IS ALREADY SELLING LIKE GANGBUSTERS FOR TIME WARNER INC'S BOOKOFTHEMONTH CLUB SAYS EDITORINCHIEF BRIGITTE WEEKS WE NEVER TAKE RESERVATIONS IN ADVANCE FOR A BOOK BUT WE DID THIS TIME AND 32000 COPIES WERE ORDERED EVEN BEFORE THE CONVENTION BEGINS MOST BOOKSELLERS ALREADY KNOW WHICH BIG FALL BOOKS PUBLISHERS WILL BE HYPING IN THEIR BOOTHS AND ARE STARTING TO ORDER COPIES BASED ON THEIR PREDICTIONS OF SUCCESS NAN KNECHT A MANAGER WITH MAINE'S BOOKLAND CHAIN IS EXPECTING BIG SALES FOR STRIPTEASE BY CARL HIAASEN A NOVELIST WHOSE FOLLOWING IS GROWING LIKE MOST INDEPENDENTS SHE IS ALSO EXCITED ABOUT THE NEXT NOVEL BY BARBARA KINGSOLVER PIGS IN HEAVEN AT BARNES & NOBLE THE BUYING DEPARTMENT IS BUZZING ABOUT FRANK CONROY'S NOVEL BODY AND SOUL SAYS A SPOKESWOMAN WHICH WE THINK COULD EASILY BE THE BIG FALL SLEEPER BOOKSELLERS TAKE IT FOR GRANTED THAT THE AUTOBIOGRAPHY OF OPRAH WINFREY DUE IN SEPTEMBER WILL BE ONE OF FALL'S MEGASELLERS HOW CAN IT NOT BE GIANT SHE HAS 20 MILLION VIEWERS AND THEY LOVE HER SAYS MS WEEKS OF BOOKOFTHEMONTH VIKING A UNIT OF BRITAIN'S PEARSON PLC WILL PUBLISH THE BUCCANEERS AN UNFINISHED NOVEL BY EDITH WHARTON THAT HAS BEEN COMPLETED ACCORDING TO HER OUTLINE WARNER BOOKS A UNIT OF TIME WARNER WILL BE PUSHING THE PURPORTED DIARY OF JACK THE RIPPER AND A SECOND NOVEL BY JAMES WALLER WHOSE BRIDGES OF MADISON COUNTY STILL TOPS THE BESTSELLER LIST PARAMOUNT COMMUNICATIONS INC'S SIMON & SCHUSTER HOPES BETTY FRIEDAN'S THE FOUNTAIN OF AGE WILL BE A BLOCKBUSTER WHILE HARPERCOLLINS PUBLISHERS A NEWS CORP UNIT IS BETTING ON MARGARET THATCHER'S MEMOIRS BUT DESPITE THE EXCITEMENT OVER NEW BOOKS MOST INDEPENDENT BOOKSELLERS FEAR IT IS THE LARGE CHAINS THAT WILL CONTINUE TO BENEFIT WHILE THEIR OWN SMALLER STORES GET HAMMERED AS THE BIG BOOKSTORE CHAINS ROLL OUT MORE AND MORE GIANT SUPERSTORES ACROSS THE COUNTRY BRINGING THE TOTAL NEAR 200 MANY LOCAL STORES ARE STRUGGLING TO COMPETE THEY ARE ADDING EXTRA SERVICES LONGER HOURS AND DEEPER DISCOUNTS MANY STOREOWNERS HEADING TO MIAMI THIS YEAR ARE SCOUTING AS MUCH FOR MARKETING TIPS FROM FELLOW MEMBERS AS HOT NEW TITLES FROM PUBLISHERS THEY'LL GET PLENTY OF BOTH SURVIVING THE SUPERSTORES IS JUST ABOUT ALL EVERYBODY WILL BE TALKING ABOUT PREDICTS PAT PETERSON COOWNER OF FOUR BARBARA'S BOOKSTORES IN CHICAGO ONE OF THE BARBARA'S STORES OPEN MORE THAN 20 YEARS WAS BADLY HURT BY THE OPENING LAST YEAR OF A LARGE HANDSOME BARNES & NOBLE SUPERSTORE ABOUT SIX BLOCKS AWAY OUR TOTAL SALES FOR ALL STORES ARE RUNNING ABOUT 5 BELOW A YEAR AGO WHICH UNDER THE CIRCUMSTANCES WE FEEL IS HEROIC SAYS MS PETERSON WE DIDN'T DO DISCOUNTS BEFORE BUT NOW WE DISCOUNT ONE SECTION OF EACH STORE EVERY MONTH BY 20 WE'RE TRYING TO SPEND LESS ON THINGS LIKE LIGHTBULBS SO WE DON'T HAVE TO CUT STAFF DISCOUNTS VARY AT BARNES & NOBLE SUPERSTORES BUT BESTSELLERS GO FOR AT LEAST 25 OFF AND OTHER TITLES ARE DISCOUNTED AS WELL OTHER CHICAGO STORES HAVE SUSTAINED BIGGER SALES DRAINS AS BARNES & NOBLE HAS BEEN JOINED BY OTHER SUPERSTORES INCLUDING BRITISH RETAILER WATERSTONE'S AND KMART CORP'S BORDERS INC KMART SAID THAT COMPARABLE STORE SALES AT ITS WALDENBOOKS MALL CHAIN ROSE ONLY 14 LAST YEAR BUT ITS BORDERS INC SUPERSTORE CHAIN SAYS ITS COMPARABLESTORE SALES ARE RUNNING ABOUT 20 AHEAD A STRUGGLING POLITICAL BOOKSHOP GUILD BOOKS RECENTLY WENT OUT OF BUSINESS CITING THE SUPERSTORE INVASION AS THE LAST STRAW MORE OMINOUSLY A LONGESTABLISHED LOCAL CHAIN KROCH'S & BRENTANO'S HAS FALLEN ON HARD TIMES IT HAS OFFERED EARLY RETIREMENT TO ALL 15YEARPLUS VETERANS AND MAY HAVE TO CLOSE SOME OF ITS 17 OUTLETS ONE BARNES & NOBLE SUPERSTORE IN SUBURBAN EVANSTON HAD A DEVASTATING IMPACT ON A SLIGHTLY DOWDY KROCH'S & BRENTANO'S LOCATED JUST TWO DOORS AWAY SAYS WILLIAM RICKMAN PRESIDENT OF THE CHICAGO CHAIN WE TOOK A HUGE HIT IN SALES HE SAYS DECLINING TO BE SPECIFIC TO FIGHT BACK ALL THE KROCH'S & BRENTANO'S STORES ARE OFFERING 40 DISCOUNTS ON BESTSELLERS AND TRUMPETING THE CHAIN'S CHICAGO ROOTS WITH PRINT ADS THAT FEATURE LOCAL BUSINESSMEN AND CELEBRITIES LIKE WRITER STUDS TERKEL WE HAVE TO REINVENT OURSELVES SAYS MR RICKMAN WHAT WORKED REALLY WELL IN EARLIER DECADES ISN'T WHAT WORKS NOW MARY ALICE GORMAN OWNER OF THE MYSTERY LOVERS BOOKSHOP IN OAKMONT PA NEAR PITTSBURGH SAYS SHE SCORED A 53 GAIN IN SALES LAST YEAR IN BUSINESS JUST 2 1/2 YEARS SHE SAYS HER MOST IMPORTANT INVESTMENT WASN'T HER NEW COFFEE BAR BUT A SOPHISTICATED COMPUTER SYSTEM PROGRAMMED BY HER BANKER HUSBAND I USED TO BE A FUNDRAISER AND I REALLY BELIEVE IN TARGETING BY MAIL SAYS MS GORMAN SHE HAS KEPT CAREFUL RECORDS OF THE 4000 PEOPLE WHO RECEIVE HER MAILORDER NEWSLETTER AND THOSE IN HER MASTERS OF MYSTERY DISCOUNT PROGRAM SO THAT WHEN AN AUTHOR IS SCHEDULED TO READ AT THE STORE I CAN LITERALLY SEND A POSTCARD TO ANYBODY WHO EVER BOUGHT ONE OF HIS OR HER BOOKS IN OTHER CITIES INDEPENDENT STORES ARE BANDING TOGETHER TO FIGHT THEIR GIANT COMPETITORS IN MADISON WIS MORE THAN A DOZEN INDEPENDENTS FORMED AN ASSOCIATION A YEAR AGO TO RUN GROUP ACTIVITIES AFTER A BORDERS OPENED NEARBY NEXT MONTH LOCAL CITIZENS CAN ATTEND AN EVENING AT ONE LOCAL STORE CANTERBURY BOOKSELLERS AT WHICH MANAGERS OF ALL THE STORES WILL RECOMMEND BOOKS FOR SUMMER EVERYONE AROUND HERE IS ON HIS TOES SAYS CANTERBURY'S OWNER TRUDY BARASH HER TWOYEAROLD SHOP ALREADY HOUSES A COFFEE BAR WHERE JAZZ AND BLUES ARTISTS APPEAR AND SHE IS ABOUT TO TURN HER UPSTAIRS INTO A LITERARY BED AND BREAKFAST EVEN BOOKSTORES THAT DON'T DIRECTLY COMPETE WITH SUPERSTORES FEEL COMPETITION RISING AT THE FIVE HARRY W SCHWARTZ BOOKSHOPS IN MILWAUKEE THE NEW YORK TIMES' BESTSELLERS ARE 40 OFF AND A LIST OF 100 MORE BOOKS CHOSEN FOR MERIT BY OUR BUYERS GO FOR 20 OFF SINCE HE STARTED HIS DISCOUNT PROGRAM LAST OCTOBER OWNER DAVID SCHWARTZ SAYS HIS SALES HAVE RISEN NEARLY 30 IT'S TRUE WE TOOK A HIT IN PROFITS HE ADDS BUT IT TRULY IS CHANGE OR DIE NOW AND WE ARE DETERMINED TO SURVIVE 9305280103 930528 INTERNATIONAL GERMANY ORDERS FREEZE IN 1994 FEDERAL SPENDING BONN AP GERMAN FINANCE MINISTER THEO WAIGEL IN A SPEECH TO THE BUNDESTAG THE LOWER HOUSE OF PARLIAMENT SAID THE GOVERNMENT HAS DECIDED TO CLAMP A MORATORIUM ON NEW FEDERAL SPENDING IN 1994 WE ARE EXPERIENCING THE WORST ECONOMIC CRISIS SINCE THE FOUNDING OF THE FEDERAL REPUBLIC OF GERMANY IN 1949 MR WAIGEL SAID IF IT CAN GET THE OPPOSITION SOCIAL DEMOCRATS TO GO ALONG THE GOVERNMENT ALSO WOULD SLASH ABOUT 12 BILLION FROM NEXT YEAR'S BUDGET HE SAID NO FEDERAL PROGRAMS WOULD ESCAPE THAT GOES ALSO FOR AREAS WHICH HAVE BEEN CONSIDERED TABOO INCLUDING SOCIAL BENEFITS SALARIES FOR GOVERNMENT WORKERS TAX WRITEOFFS AND SUBSIDIES FOR COAL SHIPBUILDING AND FARMING HE SAID EVEN THE GOVERNMENT'S MOVE TO BERLIN MAY HAVE TO BE DELAYED HE ADDED MR WAIGEL REVEALED NO SPECIFICS ON THE PLANNED CUTS HE SPOKE BEFORE PARLIAMENT APPROVED A SUPPLEMENTARY BUDGET THAT WILL PUSH THE 1993 FEDERAL DEFICIT TO A RECORD 42 BILLION REBUILDING FORMER EAST GERMANY IS COSTING ABOUT 60 BILLION A YEAR AT A TIME WHEN RECESSIONROCKED WESTERN GERMANY CAN ILL AFFORD IT MR WAIGEL SUGGESTED THAT HOPES FOR A TURNAROUND LATER THIS YEAR MAY BE TOO OPTIMISTIC SAYING ALL EXPECTATIONS OF A STEADILY GROWING PROSPERITY MUST BE REVISED 9305280102 930528 BUSINESS BRIEF MANVILLE CORP RIVERWOOD UNIT COMPLETES RENEGOTIATION OF ITS DEBT RIVERWOOD INTERNATIONAL CORP AN 805OWNED UNIT OF MANVILLE CORP SAID IT COMPLETED THE RENEGOTIATION OF ABOUT 194 MILLION IN PRIVATE DEBT THE DEBTHOLDER RIVERWOOD'S RIVERWOOD USA UNIT AGREED TO ELIMINATE CROSSDEFAULT PROVISIONS THAT REQUIRED MANVILLE TO GUARANTEE THE DEBT ISSUED BEFORE RIVERWOOD'S INITIAL PUBLIC OFFERING LAST YEAR IN ADDITION RIVERWOOD RESCHEDULED 63 MILLION IN PRINCIPAL PAYMENTS DUE IN 1993 AND 1994 UNTIL 1997 DELAYING THE PAYMENTS UNTIL AFTER THE COMPLETION OF A 250 MILLION CONSTRUCTION PROJECT AT ITS MACON GA PAPER MILL 9305280101 930528 BUSINESS BRIEF SOUTHWESTERN APPEARS TO GAIN AN EDGE IN BATTLE TO ACQUIRE EL PASO ELECTRIC BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL SOUTHWESTERN PUBLIC SERVICE CO APPEARS TO HAVE EDGED OUT CENTRAL & SOUTH WEST CORP IN THE BATTLE TO ACQUIRE FINANCIALLY AILING EL PASO ELECTRIC CO THE BANKRUPTCY COURT OVERSEEING EL PASO'S CASE ALLOWED SOUTHWESTERN TO PROCEED WITH ITS OWN BUYOUT PLAN OF THE EL PASO TEXAS UTILITY UNTIL A HEARING ON WEDNESDAY IN AUSTIN TEXAS IT APPEARED THAT CENTRAL & SOUTH WEST MIGHT PREVAIL IN ITS PLAN TO BUY EL PASO FOR 21 BILLION IN NEW STOCK AND DEBT SECURITIES SOUTHWESTERN'S PROPOSAL HAS YET TO BE SUBMITTED TO THE BANKRUPTCY COURT AND NO SPECIFICS NOT EVEN A PURCHASE PRICE HAVE BEEN MADE PUBLIC BUT US BANKRUPTCY JUDGE FRANK R MONROE GAVE SOUTHWESTERN TIME TO LOBBY EL PASO'S CREDITORS ADDING THAT WHICHEVER PLAN GETS THE MOST CREDITOR SUPPORT WILL WIN OUT A SOUTHWESTERN SPOKESMAN SAID THE AMARILLOBASED UTILITY WOULD HAVE ITS PLAN AND CREDITOR SUPPORT FOR IT LINED UP WITHIN THREE WEEKS SAVINGS FROM SOUTHWESTERN'S PLAN TO CONSOLIDATE THE TWO UTILITIES COULD BE TWICE AS LARGE AS THOSE OUTLINED BY CENTRAL SAID A SOUTHWESTERN SPOKESMAN ALTHOUGH HE GAVE NO SPECIFICS CENTRAL & SOUTH WEST ALREADY HAD SUBMITTTED A REORGANIZATION PLAN WITH EL PASO'S SUPPORT UNDER WHICH EL PASO WOULD BECOME A UNIT OF ONE OF CENTRAL & SOUTH WEST'S FOUR ELECTRIC UTILITIES JUDGE MONROE CANCELLED A JULY 15 HEARING AT WHICH CENTRAL & SOUTH WEST WOULD UNVEIL ITS DISCLOSURE STATEMENT ON THE PLAN THE LATEST MOVE IS A SLIGHT DELAY FOR US BUT WE WILL CONTINUE TO NEGOTIATE WITH THE CREDITORS TO COME UP WITH THE BEST PLAN A CENTRAL & SOUTH WEST SPOKESMAN SAID THAT MAY REQUIRE A GREAT DEAL OF NEGOTIATING FOR EL PASO'S CREDITORS ARE LESS THAN ENTHUSIASTIC ABOUT CENTRAL & SOUTH WEST'S PLAN TO PAY SHAREHOLDERS AND CREDITORS IN NEW CENTRAL & SOUTH WEST COMMON STOCK AND NEW SECURITIES FROM EL PASO WHILE SECURED CREDITORS WILL GET ALL THEY'RE OWED UNSECURED CREDITORS AND SOME BONDHOLDERS WILL GET 90 OF THEIR CLAIMS AND PREFERRED SHAREHOLDERS WILL RECIEVE ONLY 75 ATTORNEY ROBERT ALBERGOTTI DESIGNATED AT WEDNESDAY'S HEARING TO REPRESENT CREDITORS OWED 19 BILLION OF EL PASO DEBT SAID IN AN INTERVIEW THAT CENTRAL & SOUTH WEST'S PLAN IS NOT ACCEPTABLE TO CREDITORS SOUTHWESTERN'S OFFER HOWEVER HAS SUPERIOR ECONOMICS FOR CREDITORS SOUTHWESTERN MAY HAVE AN ADDITIONAL EDGE IN GETTING REGULATORY APPROVAL A BATTERY OF STATE AND FEDERAL AGENCIES MUST FIND THAT THE TRANSACTION IS IN THE PUBLIC INTEREST AND SOUTHWESTERN ALREADY HAS PUBLIC UTILITIES COMMISSION OF TEXAS STAFFERS ON ITS SIDE THE STAFF RECENTLY SAID IT FAVORS UTILITY RATES PROPOSED FOR EL PASO BY SOUTHWESTERN NOT CENTRAL & SOUTH WEST'S PROPOSED RATE PATH CENTRAL & SOUTH WEST FACES OTHER PROBLEMS INCLUDING THE FACT THAT ITS SYSTEM DOESN'T EASILY FIT IN WITH EL PASO'S AND ANY COMBINATION OF THE TWO SYSTEMS WOULD LIKELY RAISE ANTITRUST ISSUES 9305280100 930528 INTERNATIONAL JAPANESE SAY THEY'LL IMPOSE CONDITIONS IN TRADE TALKS CONTRARY TO US VIEWS BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE JAPANESE GOVERNMENT PLANS TO THROW DOWN THE GAUNTLET IN TRADE TALKS WITH THE US NEXT MONTH IMPOSING CONDITIONS THAT REPUDIATE FUNDAMENTAL CLINTON ADMINISTRATION POLICY FOREIGN MINISTRY OFFICIALS SAID BEFORE HASHING OUT A NEW FRAMEWORK FOR USJAPAN TRADE AS THE US WANTS JAPAN WILL INSIST ON AN AGREEMENT OF UNDERLYING PRINCIPLES THE OFFICIALS TOLD US REPORTERS IN TOKYO THOSE PRINCIPLES ACCORDING TO A FOREIGN MINISTRY PROPOSAL INCLUDE PROHIBITING THE USE OF US TRADE LAW TO ENFORCE AGREEMENTS ENSURING THAT IF EITHER SIDE EVOKES UNILATERAL MEASURES THE OTHER WILL RESERVE THE RIGHT TO SUSPEND THOSE TALKS AFFIRMING THAT MANAGED TRADE APPROACHES WILL BE PRECLUDED AND THAT NO DISCUSSIONS WILL BE MADE FOR THE PURPOSE OF SETTING A NUMERICAL TARGET THAT IS RESERVING PART OF ANY JAPANESE MARKET FOR US COMPANIES JAPAN ALSO WILL DEMAND THAT ANY AGREEMENTS BE TWO WAY MEANING THE US WILL HAVE TO MAKE CONCESSIONS AS WELL JAPAN'S PROPOSALS ARE LIKELY TO CLASH WITH THOSE PUT FORTH BY US TRADE OFFICIALS AT THE TALKS SCHEDULED FOR JUNE 7 IN WASHINGTON CLINTON ADMINISTRATION OFFICIALS HAVE SAID THEY WANT JAPAN TO AGREE TO QUANTITATIVE TARGETS TO IMPROVE US ACCESS TO THE JAPANESE MARKET AND TO CUT JAPAN'S HUGE TRADE SURPLUS BUT THE FOREIGN MINISTRY OFFICIALS SAID THE USJAPAN SEMICONDUCTOR AGREEMENTS OF 1986 AND 1991 WHICH SET A DE FACTO MARKET SHARE GOAL FOR FOREIGN CHIP MAKERS IN JAPAN WERE MISTAKES JAPAN DOESN'T INTEND TO REPEAT IN THE PAST JAPAN HAS SAID IT WOULD REFUSE TO NEGOTIATE IF PRESSURED BY US THREATS THOUGH IT ALWAYS CAVED IN AND NEGOTIATED ANYWAY EVEN NOW SAID ONE FOREIGN MINISTRY OFFICIAL WE WOULD REFUSE TO NEGOTIATE UNDER THE THREAT OF SANCTIONS BUT THAT DOESN'T MEAN WE WON'T HAVE ANY TALKS WHEN THE ISSUE IS IMPORTANT TO THE GOVERNMENT OF THE US JAPAN MAY HE ADDED SAY THEY'RE JUST INFORMAL TALKS THE OFFICIAL CONCEDED THAT JAPAN IN FACT SHOULD MAKE MANY CHANGES IN ITS ECONOMIC POLICIES THAT THE US HAS LONG DEMANDED SUCH AS TOUGHENING ANTITRUST ENFORCEMENT AND CURBING JAPAN'S MEDDLESOME BUREAUCRATS BUT HE SAID JAPAN WANTS TO FEEL AS IF IT ISN'T ACTING ONLY BECAUSE OF US PRESSURE WE NEED A JAPAN WHO CAN SAY YES' WITHOUT BEING ORDERED TO SAY YES' HE ASSERTED 9305280099 930528 THE AMERICAS NEW LATIN DEMOCRATS PREFER OLDTIME CENSORSHIP BY CARLOS BALL DESPITE THE ACCELERATING TREND TOWARD FREE MARKETS AND MORE DEMOCRATIC FORMS OF GOVERNMENT ALMOST EVERYWHERE SOUTH OF THE BORDER THE HONEYMOON BETWEEN JOURNALISTS AND POLITICIANS HAS BEEN RATHER SHORT AND BUMPY WE WERE REMINDED JUST HOW BUMPY BY THIS WEEK'S EVENTS IN GUATEMALA WHERE PRESIDENT JORGE SERRANO PUT A TIGHT GAG ORDER ON THE PRESS AFTER UNILATERALLY DISMISSING CONGRESS AND THE COUNTRY'S SUPREME COURT OF COURSE OPENLY REGRESSIVE ACTIONS LIKE THOSE IN GUATEMALA ARE OBVIOUS TO SEE AND EASY TO CONDEMN OUT OF HAND BUT IN A GROWING NUMBER OF COUNTRIES THE RELATIONSHIP BETWEEN NEW DEMOCRATS AND MEMBERS OF THE MEDIA IS TURNING SOUR IN A MORE SUBTLE FASHION JOURNALISTS ARE DISCOVERING THAT DULYELECTED DEMOCRATIC GOVERNMENTS CAN LASH OUT JUST AS QUICKLY AS AUTHORITARIAN REGIMES DO WHEN CONFRONTED WITH WHAT THEY VIEW AS AN UNACCEPTABLE LACK OF RESPECT AND IRREVERENCE TO HIGH OFFICIALS THE NEW FUNCTIONARY IN A DEMOCRATIC GOVERNMENT SOMEWHAT DIZZY WITH HIS MANY SECRETARIES LARGE MINISTERIAL OFFICE AND CHAUFFEURDRIVEN LIMO DOES NOT TAKE KINDLY TO CRITICISM IN THE PRESS THROUGHOUT LATIN AMERICA NEW LAWS ARE BEING ENACTED AND CONSTITUTIONS AMENDED TO REIN IN AN UNFRIENDLY PRESS THAT HAS TASTED BLOOD IN THE NEW DEMOCRATIC TIMES AFTER EXTENDED PRIVATIZATION PROGRAMS THE OLD ADVERTISING ENTICEMENTS WHICH GOVERNMENTCONTROLLED INDUSTRIES USED TO EMPLOY TO INFLUENCE EDITORIAL CONTENT HAVE BEEN DRYING UP NEWSPAPERS THAT GREW UP PRAISING EVERY GOVERNMENT IN POWER CAN NO LONGER AFFORD TO REFLEXIVELY IGNORE AGGRESSIVE NEWCOMERS ZEROING IN ON THE LATEST CORRUPTION SCANDAL IN HIGH CIRCLES ONE NEWSPAPER THAT HAS TASTED BOTH NEWFOUND FREEDOM AND NEW RESTRICTIONS IS PANAMA'S EL PANAMA AMERICA THIS PAPER WAS OWNED BY GILBERTO ARIAS THE BROTHER OF ARNULFO ARIAS WHO HAD BEEN ELECTED PRESIDENT THREE TIMES AND WAS JUST AS MANY TIMES DEPOSED BY MILITARY THUGSTHE LAST TIME IN 1968 IN JULY OF 1969 A JUDGE ORDERED THE LIQUIDATION OF THE PAPER AND ITS SISTER PUBLICATIONS ITS ASSETS WERE TRANSFERRED WITHOUT COMPENSATION TO A NEW COMPANY CALLED EDITORA RENOVACION UNDER THE DIRECTION OF GOVERNMENT STRAW MEN THE NEWSPAPERS BECAME PROPAGANDA OUTLETS FOR THE MILITARY DICTATORSHIP FOR 21 YEARS ATTACKING ANYONE PROPOSING THE REESTABLISHMENT OF A DEMOCRATIC REGIME EVEN MANUEL NORIEGA SAT FOR A WHILE AS A BOARD MEMBER THE DAY THE US MARINES DEPOSED GEN NORIEGA IN 1989 GILBERTO ARIAS AND HIS SISTER ROSARIO DE GALINDO TOOK PHYSICAL POSSESSION OF THE DETERIORATED EL PANAMA AMERICA INSTALLATIONS WITHIN DAYS THEY WERE PUBLISHING THEIR NEWSPAPERS AGAIN WHILE NOT AN OPPOSITION PAPER EL PANAMA AMERICA HAS BEEN CRITICAL OF PRESIDENT GUILLERMO ENDARA AND THE PRESIDENT HAS NOT TAKEN THE CRITICISM WELL DURING THE QUARTER OF A CENTURY THAT THE PAPERS WERE RUN AS OFFICIAL MOUTHPIECES THE PUBLISHING FIRM NOT SURPRISINGLY LOST A GREAT DEAL OF MONEY HOWEVER THE DEEP POCKETS OF THE GOVERNMENTOWNED BANCO NACIONAL DE PANAMA BECAME ITS STEADY SOURCE OF READY CASH SHORTLY AFTER THE ARIAS FAMILY BEGAN PUBLISHING AGAIN THE BANK'S MANAGER APPOINTED BY PRESIDENT ENDARA INSISTED THAT ALL DEBTS INCURRED BY THE USURPERS BE PAID BEFORE LIENS ON THE PRESSES AND BUILDINGS WERE LIFTED THE BANK'S POSITION WAS SO OUTRAGEOUS THAT THE NATIONAL LEGISLATURE PASSED A LAW LAST JUNE RESTORING ALL RIGHTS OVER THE PROPERTY TO THE ARIAS FAMILY THE LAW ALSO TURNED ASIDE HUNDREDS OF LAW SUITS INTRODUCED BY THE NEWSPAPERS' FORMER EMPLOYEES WHO HAD LOST THEIR JOBS WHEN THE OWNERS RECLAIMED THEIR PROPERTY BUT PRESIDENT ENDARA UNHAPPY WITH EL PANAMA AMERICA'S EDITORIAL POLICY VETOED THE NATIONAL LEGISLATURE'S DECISION AND THE MATTER WENT TO THE SUPREME COURT FINALLY ON APRIL 22 THE SUPREME COURT OVERTURNED THE PRESIDENTIAL VETO DECIDING IN FAVOR OF THE LEGITIMATE OWNERS PANAMA IS NOT ALONE IN HAVING A PRESIDENT AND POLITICAL BOSSES WHO SEE THE LOCAL PRESS AS A NUISANCE THAT MUST BE CONTROLLED BY LEGAL AND EXTRALEGAL MEANS IN COLOMBIA THE CONSTITUTIONAL COURT ORDERED NEWSPAPER CARTOONISTS TO ELIMINATE ABUSES AND EXAGGERATION THE NEW COLOMBIAN CONSTITUTION ALSO STIPULATES THE MEDIA'S SOCIAL RESPONSIBILITY AND THE SOCALLED RIGHT TO HONOR OF THE PEOPLE UNDER THIS SOCALLED GUARDIANSHIP LAW THE EDITOR OF THE BOGOTA DAILY LA PRENSA WAS JAILED LAST WEEK THE FIRST SUCH INSTANCE SINCE 1956 UNDER A MILITARY DICTATORSHIP LAST DECEMBER THE LEGISLATIVE ASSEMBLY OF EL SALVADOR ENACTED AN ELECTORAL CODE BANNING CRITICISM DEEMED DAMAGING TO THE IMAGE OF CANDIDATES OR MEMBERS OF POLITICAL PARTIES PRESUMABLY TO AVOID PUBLIC DISCUSSION OF CRIMES COMMITTED BY FORMER GUERRILLAS NOW TAKING PART IN POLITICAL ACTIVITIES THIS CODE WAS AMENDED IN FEBRUARY BUT THE NATIONAL COMMITTEE FOR THE CONSOLIDATION OF PEACE HAS DRAWN A BILL PROHIBITING EDITORS FROM MAKING CHANGES IN THE TEXT OF ARTICLES WRITTEN BY REPORTERS AND COLUMNISTS AND COMPELLING NEWSPAPERS TO PUBLISH ALL POLITICAL COMMUNIQUES ON JANUARY 17 PRESIDENT ALBERTO FUJIMORI OF PERU SAID PUBLICLY THAT ANY NEWS PUBLISHED IN DISAGREEMENT WITH THE INFORMATION GIVEN BY THE NATIONAL INTELLIGENCE SERVICE SHOULD BE EVALUATED BY THE SERVICE A FEW DAYS LATER SEVERAL FOREIGN CORRESPONDENTS WERE CALLED IN BY THE INTELLIGENCE SERVICE IN A COUNTRY WHERE ARTICLE 331A OF THE PENAL CODE DOES NOT DEFINE SECRET INFORMATION BUT PUNISHES THOSE WHO REVEAL IT LAST SUMMER THE VENEZUELAN GOVERNMENT DECREED THAT NO ONE PERSON OR CORPORATION MAY OWN MORE THAN ONE TELEVISION STATION THIS WAS A DIRECT THREAT TO MULTIMEDIA GROUPS THAT UNCOVERED CORRUPTION IN THE ADMINISTRATION OF THE NOWSUSPENDED PRESIDENT CARLOS ANDRES PEREZ EARLIER THIS MONTH VENEZUELAN CONGRESSMAN LUIS CORONA SPOKE AT THE INTERPARLIAMENTARY CONFERENCE OF LATIN AMERICA AND THE EUROPEAN COMMUNITY IN SAO PAULO IN FINE ORWELLIAN DOUBLESPEAK HE PROPOSED THE ESTABLISHMENT OF AN INTERNATIONAL ORGANIZATION TO REGULATE THE BEHAVIOR OF THE PRESS IN ORDER TO PRESERVE THE FUNDAMENTAL PRINCIPLE THAT THE RESPONSIBLE EXERCISE OF FREEDOM OF INFORMATION IS REQUIRED TODAY AND IN THE FUTURE IT'S NO ACCIDENT THAT MR CORONA IS A CONGRESSMAN FROM ONE OF LATIN AMERICA'S OLDEST DEMOCRATIC PARTIES THE POLITICAL ESTABLISHMENTS IN SEVERAL LATIN NATIONS REGARD THE PRESS AS A DANGEROUS THREAT TO THEIR POWER CARTELS HOWEVER IF LATIN POLITICIANS ARE SUCCESSFUL AT PREVENTING THE CONSOLIDATION OF A FREE PRESS THE REGION'S CURRENT FREEMARKET BOOM WILL COME CRASHING TO A HALT FOR MARKETS DO NOT REMAIN FREE FOR LONG IF INFORMATION VITAL TO THOSE MARKETS IS KEPT FROM CIRCULATING FREELY MR BALL FORMER EDITORINCHIEF OF EL DIARIO DE CARACAS IS PRESIDENT OF AGENCIA INTERAMERICANA DE PRENSA ECONOMICA AN ECONOMIC NEWS AND SYNDICATION SERVICE FOR SPANISHLANGUAGE NEWSPAPERS 9305280098 930528 AIDS EXPERIMENT SHOWS VACCINE SHIELDS MONKEYS WASHINGTON AP IN AN EXPERIMENT THAT MIMICS THE SEXUAL TRANSMISSION OF AIDS RESEARCHERS SHOWED THAT FEMALE MONKEYS CAN BE PROTECTED FROM INFECTION USING A TIMERELEASE VACCINE PRESTON A MARX OF THE NEW MEXICO REGIONAL PRIMATE RESEARCH LABORATORY REPORTS TODAY IN THE JOURNAL SCIENCE THAT FIVE OF SIX FEMALE MONKEYS WERE PROTECTED AGAINST VAGINAL EXPOSURE TO SIMIAN AIDS AFTER INOCULATIONS WITH SLOWLY DISSOLVING BEADS COATED WITH THE VIRUS THE IDEA WITH THIS VACCINE IS TO NEUTRALIZE THE VIRUS AT THE POINT OF CONTACT DR MARX SAID OUR FEELING IS THAT ONCE THE VIRUS ENTERS THE BLOODSTREAM THAT THE VACCINE WILL BE FAR LESS EFFECTIVE THE STUDY WITH MACAQUE MONKEYS USED A VIRUS CALLED SIMIAN IMMUNODEFICIENCY VIRUS OR SIV THAT IS CLOSELY AKIN TO HIV WHICH CAUSES AIDS IN HUMANS SIV CAUSES AIDS IN MONKEYS DR MARX SAID THE GOAL OF THE VACCINE WAS TO CAUSE THE FEMALE MONKEYS TO DEVELOP SIV ANTIBODIES IN THE MUCOUS MEMBRANE THAT LINES THE VAGINA ALTHOUGH THE MAJORITY OF AIDS CASES IN THE US ARE AMONG HOMOSEXUAL MEN THE DISEASE WORLDWIDE IS MOST COMMONLY SPREAD THROUGH HETEROSEXUAL INTERCOURSE ON A GLOBAL BASIS THE MAJORITY OF AIDS PATIENTS ARE HETEROSEXUAL 9305280097 930528 UMW IS LIKELY TO EXPAND COAL STRIKE TO FIGHT RISING USE OF NONUNION MINERS BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL THE UNITED MINE WORKERS UNION IS LIKELY TO EXPAND ITS SELECTIVE STRIKE FURTHER NEXT WEEK AS IT BATTLES COAL PRODUCERS' INCREASING USE OF NONUNION WORKERS UMW PRESIDENT RICHARD TRUMKA WHO THIS WEEK WIDENED THE THREEWEEKOLD STRIKE TO INCLUDE 6200 MINERS AT SEVEN PRODUCERS HAS VOWED TO STRATEGICALLY AND SELECTIVELY EXPAND THE STRIKE THAT COULD INCLUDE MORE MINES AT COMPANIES THE UMW IS STRIKING OR NEW TARGETS SUCH AS NO 1 PRODUCER PEABODY HOLDING CO THE STRIKE PROMISES TO BE PROLONGED AND DIFFICULT WITH UMW MINERS CONTROLLING JUST 30 OF THE NATION'S COAL PRODUCTION THE WALKOUT HAS HARDLY BEEN NOTICED UTILITIES HOARDING BIG STOCKPILES ARE SIMPLY TURNING TO OTHER SUPPLIERS MOREOVER COAL PRODUCERS SEEM UNWILLING TO BREAK THEIR PRACTICE OF OPENING NONUNION MINES WHICH ARE MORE PRODUCTIVE AND LESS COSTLY STEMMING THIS TREND IS CRUCIAL FOR THE MINEWORKERS' SURVIVAL IF IT FAILS TO SECURE JOB GUARANTEES 20000 OF ITS 60000 MEMBERS COULD LOSE THEIR JOBS IN THE NEXT FIVE YEARS PREDICTS RALPH BARBARO A CONSULTANT WITH ENERGY VENTURES ANALYSIS INC IN ARLINGTON VA THE UNION IS DEMANDING ALL JOBS IN NEW MINES ACCORDING TO THE BITUMINOUS COAL OPERATORS ASSOCIATION WHICH REPRESENTS THE COALPRODUCING SUBSIDIARIES OF 12 COMPANIES MR TRUMKA SAID WE HAVE NOT TOLD THEM THERE MUST BE X NUMBER OF JOBS BUT ADDED THAT AVAILABLE JOBS SHOULD GO FIRST TO UNION MEMBERS CONTRACT TALKS BEGAN LAST FALL BUT LITTLE PROGRESS WAS MADE BEFORE THE FOURYEAR PACT EXPIRED FEB 1 THE UNION THEN STRUCK TWO PEABODY UNITS FOR ONE MONTH BEFORE THE TWO SIDES AGREED TO A CONTRACT EXTENSION THE BCOA SAID IT OFFERED THE UNION SOME JOBS AT ITS NONUNION MINES BUT THE UMW BALKED LEADING TO THE CURRENT WALK OUT FIVE YEARS AGO THE BCOA GUARANTEED LAIDOFF UMW MEMBERS THREE OUT OF FIVE JOBS AT NEW MINES BUT SEVERAL BCOA MEMBERS CIRCUMVENTED THAT AGREEMENT BY SETTING UP NONUNION MINES UNDER SEPARATE SUBSIDIARIES THAT MANEUVER WAS PARTICULARLY GALLING TO MR TRUMKA A LAWYER BY TRAINING WHO HAS HEADED THE UMW SINCE 1982 HE'S FIGHTING TO KEEP HIS MEMBERSHIP AS LARGE AS IT IS WITHOUT GIVING CONCESSIONS SAID MR BARBARO MR TRUMKA IS BATTLING TRENDS OUTSIDE HIS CONTROL TOO THE CLEAR AIR ACT IS PUSHING COAL USERS AWAY FROM HIGHSULFUR COAL WHICH THE UMW MAINLY MINES FOR EXAMPLE AFTER A UTILITY DECIDED TO SWITCH TO LOWSULFUR COAL A UNIT OF PEABODY REACHED AN AGREEMENT TO CONTINUE DOING BUSINESS WITH THE UTILITY BY SWITCHING THE SUPPLY TO ITS NONUNION MINES IN WYOMING THE SHIFT WILL EVENTUALLY CUT 450 OF 750 JOBS AT THREE PEABODY UNION MINES IN ILLINOIS MR TRUMKA IS USING SELECTIVE STRIKES PARTLY TO TRY TO CREATE DISSENSION WITHIN THE BCOA ANALYSTS SAY HE ALSO HAS OFFERED TO NEGOTIATE WITH EACH COMPANY SEPARATELY WHICH COULD ALLOW THE UMW TO GET MORE OUT OF THE PEOPLE WHO CAN AFFORD IT SAID MR BARBARO IN ADDITION HE'S DRAWING ON SUPPORT OF OTHER UNIONS THE UNITED AUTO WORKERS FOR EXAMPLE HAS EXTENDED A 50 MILLION LINE OF CREDIT TO THE UMW TO BOLSTER THE MINEWORKERS' STRIKE FUND BUT BCOA SHOWS FEW SIGNS OF BREAKING APART THE LEADERSHIP OF BOTH SIDES FEELS LIKE THEY'RE GOING TO TEACH THE OTHER SIDE A LESSON BECAUSE WHAT THEY'RE ARGUING FOR IS WHAT'S TRUE AND RIGHT SAID RAFAEL A VILLAGRAN AN ANALYST WITH LEHMAN BROTHERS 9305280096 930528 BUSINESS BRIEF NETWORK FINANCIAL SERVICES INC FORMER EXECUTIVES OF UNIT AGREE TO LAWSUIT SETTLEMENT NETWORK FINANCIAL SERVICES INC SAID TWO FORMER OWNERS OF ITS MORTGAGE UNIT AGREED TO SETTLE A LAWSUIT FILED BY THE COMPANY FOR STOCK AND PROPERTY WORTH ABOUT 1250000 NETWORK BASED IN SAN JOSE CALIF SAID IT SUED THE UNIT'S FORMER OWNERS IN STATE COURT CHARGING THEY FAILED TO DISCLOSE HIDDEN LIABILITIES AT THE TIME THEY SOLD THE UNIT TO THE COMPANY IN 1990 THE SETTLEMENT WAS REACHED WITH LEO RAICHE FORMER CHAIRMAN OF NETWORK'S CAPITAL MORTGAGE UNIT AND THE UNIT'S PRESIDENT DONALD RYALS BOTH EXECUTIVES LEFT NETWORK IN JUNE 1992 THE COMPANY SAID NETWORK SAID IT IS STILL SEEKING STOCK AND A 900000 TRUST DEED ON ANOTHER PROPERTY FROM ROGER MCCURDY A THIRD FORMER OWNER OF THE MORTGAGE UNIT 9305280095 930528 WHO'S NEWS PETRIE STORES PLANS MANAGEMENT REVAMP PROMOTES 2 EXECUTIVES SECAUCUS NJ PETRIE STORES CORP ANNOUNCED A MANAGEMENT RESTRUCTURING AND SAID ALLAN LAUFGRABEN AND PETER A LEFT WILL TAKE PRIMARY OPERATING RESPONSIBILITY FOR THE RETAILER PETRIE ALSO SAID ITS BOARD ASKED MESSRS LAUFGRABEN AND LEFT TO REVIEW AND ANALYZE ALL PHASES OF THE COMPANY'S BUSINESSES WITH A VIEW TOWARD INCREASING PROFITABILITY THROUGH IMPROVED MERCHANDISING AND REDUCED EXPENSES MILTON PETRIE WILL CONTINUE AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER AND HILDA KIRSCHBAUM WILL CONTINUE AS VICE CHAIRMAN AND ASSIST IN THE MANAGEMENT RESTRUCTURING THE COMPANY SAID IN A SHORT STATEMENT COMPANY OFFICIALS DIDN'T RETURN PHONE CALLS SEEKING FURTHER INFORMATION MR LAUFGRABEN PREVIOUSLY PRESIDENT OF THE COMPANY'S PLUS SIZE DIVISION WILL HEAD MERCHANDISING OPERATIONS FOR ALL SEGMENTS OTHER THAN THE WINKELMAN AND G&G SUBSIDIARIES MR LEFT WILL HEAD PETRIE'S OPERATIONS AND ADMINISTRATION HE CURRENTLY IS PETRIE'S CORPORATE SECRETARY DANIEL MARESCA AND JAY GALIN WILL CONTINUE AS RESPECTIVE PRESIDENTS OF THE WINKELMAN AND G&G UNITS 9305280094 930528 BIG BOARD ACTS AGAINST CLERK GOADED BY STAFF DISCIPLINARY ACTIONS INCLUDE ONE FOR FICTITIOUS TRADES MADE AFTER HECKLING BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE TOOK DISCIPLINARY ACTION AGAINST A SPECIALIST FIRM'S CLERK WHO WAS GOADED INTO ENTERING FICTITIOUS TRADES OF A STOCK BY THE PERSISTENT HECKLING OF COLLEAGUES THE EXCHANGE SAID VINCENT A REGAN FLORAL PARK NY AN EMPLOYEE OF LABRANCHE & CO WAS SUSPENDED FOR THREE MONTHS AND BARRED FOR 18 MONTHS FROM HOLDING MEMBERSHIP IN THE EXCHANGE THE EXCHANGE SAID MR REGAN WHO HAD BEGUN TAKING A COURSE IN TECHNICAL MARKET ANALYSIS IN LATE 1991 DECIDED THAT A PARTICULAR STOCK TRADING UNDER 2 A SHARE HAD ESSENTIALLY BOTTOMED OUT AND WOULD BE GOING UP IN PRICE AND CONVINCED HIS FIRM'S STOCK SPECIALIST TO BUY MORE OF THE STOCK THE FIRM AT ONE POINT HAD 30000 TO 40000 INVESTED NOT A LARGE POSITION FOR THE FIRM IT WAS WELL KNOWN IN THE FIRM THAT REGAN A VERY SERIOUS HARDWORKING INDIVIDUAL HAD RECOMMENDED THE STOCK AND WAS FOLLOWING IT CLOSELY THE NYSE SAID THUS WHENEVER THE STOCK CLOSED DOWN AN EIGHTH THE FIRM'S PARTNERS TOOK THE OPPORTUNITY TO HECKLE REGAN UNMERCIFULLY ABOUT HIS' STOCK WHILE THE REACTION WAS MEANT IN GOOD HUMOR MR REGAN TOOK THEIR COMMENTS VERY SERIOUSLY AND DEVELOPED A HIGH DEGREE OF STRESS OVER THE SITUATION THE REPORT SAID IN LATE 1991 WHEN THE STOCK THREATENED TO DROP BELOW ITS PREVIOUS CLOSING PRICE ON ABOUT A DOZEN OCCASIONS MR REGAN ENTERED FICTITIOUS TRADES OF 100 TO 300 SHARES UP AN EIGHTH FROM THE PREVIOUS TRADE TO KEEP THE PRICE UP AND THUS AVOID ANOTHER ROUND OF COMMENTS THE BIG BOARD SAID WHEN THE EXCHANGE BEGAN ASKING ABOUT THE TRADING MR REGAN TOLD HIS FIRM WHAT HE HAD DONE PERSONALLY APOLOGIZED TO EACH OF THE FIRM'S PARTNERS AND EMPLOYEES AND WENT HOME TO AWAIT HIS PUNISHMENT ALTHOUGH MR REGAN HAD BEEN UNDER CONSIDERATION FOR A PARTNERSHIP THE FIRM DECIDED TO DENY HIM CONSIDERATION FOR PARTNER IN 1992 OR 1993 CANCELED HIS EXPECTED 1992 BONUS AND MADE HIM A BACKUP CLERK THE EXCHANGE'S HEARING PANEL COMMENDED THE FIRM FOR IMPOSING SEVERE PENALTIES CONCLUDED THAT MR REGAN HAD NO INTENTION TO MANIPULATE THE MARKET AND SAID HIS TRADES DIDN'T INFLUENCE MARKET PRICES HE HAS REMAINED WITH THE FIRM THE BIG BOARD ALSO ANNOUNCED DISCIPLINARY ACTIONS AGAINST 16 OTHER INDIVIDUALS FOR VIOLATIONS OF NEW YORK STOCK EXCHANGE RULES AND FEDERAL SECURITIES LAWS UNLESS OTHERWISE NOTED NONE OF THE INDIVIDUALS COULD BE REACHED OR HAD ANY COMMENT ON THE ANNOUNCEMENT MICHAEL BERGER STATEN ISLAND NY WAS BARRED FOR 10 YEARS FROM ALLIED MEMBERSHIP APPROVED PERSON STATUS AND EMPLOYMENT IN ANY CAPACITY WITH ANY MEMBER OR MEMBER FIRM AND PERMANENTLY BARRED FROM THE EXCHANGE FLOOR THE EXCHANGE SAID MR BERGER AN INDEPENDENT FLOOR BROKER OR TWODOLLAR BROKER HANDLING SMALL ORDERS FOR OTHER FIRMS RECEIVED SEVERAL ORDERS BUT FAILED TO COMPLETE THE ENTIRE TRADES AND INSTEAD FILED FICTITIOUS FLOOR REPORTS IN ADDITION IT SAID MR BERGER FAILED TO MAINTAIN THE AMOUNT OF REQUIRED CAPITAL THE EXCHANGE SAID MR BERGER WALKED OFF THE FLOOR OF THE EXCHANGE ON MAY 30 1990 AND HASN'T RETURNED MR BERGER DENIED THE CHARGES DAVID FRANK MAISEL CHAPPAQUA NY WAS BARRED FOR FAILING TO PROVIDE INFORMATION REQUESTED BY THE EXCHANGE JOSEPH E DISANZA FLORAL PARK NY A FORMER SHEARSON LEHMAN HUTTON INC BROKER WAS BARRED FOR ONE YEAR FOR MAKING UNAUTHORIZED TRADES IN A CUSTOMER'S ACCOUNT AND MAKING AN UNAUTHORIZED ADDRESS CHANGE TO DIRECT THE ACCOUNT STATEMENTS ELSEWHERE MR DISANZA DIDN'T ADMIT OR DENY THE FINDINGS SHEARSON IS THE PREDECESSOR TO SHEARSON LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO MICHAEL SCOTT LONG SAN DIEGO A FORMER PAINEWEBBER INC BROKER WAS PERMANENTLY BARRED HE DIDN'T ADMIT OR DENY THAT HE TRANSFERRED FUTURES CONTRACTS BETWEEN CUSTOMER ACCOUNTS WITHOUT CONSENT OF THE RECEIVING CUSTOMER ACCEPTED ORDERS WITHOUT WRITTEN AUTHORIZATION AND MADE UNAUTHORIZED TRANSACTIONS AMONG OTHER VIOLATIONS THE EXCHANGE BARRED FOR THREE MONTHS DAVID CRONIN MARBLEHEAD MASS A FORMER SPECIALIST IN TRAINING ON THE BOSTON STOCK EXCHANGE FOR DONALDSON LUFKIN & JENRETTE SECURITIES CORP HE DIDN'T ADMIT OR DENY THAT HE MADE TRANSACTIONS FOR THE PURPOSE OF ARTIFICIALLY AFFECTING THE MARKET PRICE OF A SECURITY LUC VAN MAEL KAPPELEN BELGIUM A FORMER BROKER WITH PRUDENTIAL INSURANCE CO OF AMERICA'S PRUDENTIAL SECURITIES INC WAS BARRED FOR FAILING TO COMPLY WITH REQUESTS BY THE NEW YORK STOCK EXCHANGE FOR INFORMATION THERESA M BICKETT OMAHA NEB A FORMER MERRILL LYNCH & CO NONREGISTERED EMPLOYEE WAS BARRED ON CHARGES THAT SHE MISAPPROPRIATED 3250 SHE DIDN'T ADMIT OR DENY THE CHARGES DOUGLAS HOPWOOD PITTSBURGH A FORMER DEAN WITTER REYNOLDS INC BROKER WAS SUSPENDED FOR THREE MONTHS FOR MAKING UNAUTHORIZED CUSTOMER TRADES AND OTHER VIOLATIONS HE DIDN'T ADMIT OR DENY THE CHARGES DEAN WITTER IS A UNIT OF SEARS ROEBUCK & CO ERNEST G MARTIN III GULFPORT MISS A FORMER BROKER WITH AG EDWARDS & SONS WAS BARRED FOR 10 MONTHS HE DIDN'T ADMIT OR DENY CHARGES THAT HE MADE UNAUTHORIZED CUSTOMER TRADES MADE MISSTATEMENTS TO CUSTOMERS REIMBURSED A CUSTOMER FOR LOSSES WITHOUT AUTHORITY TO DO SO AND OTHER VIOLATIONS WIDSTOE TED BASTIAN RENO NEV A FORMER BROKER WITH MERRILL LYNCH WAS PERMANENTLY BARRED FOR ATTEMPTING TO MISAPPROPRIATE FUNDS FROM A CUSTOMER ACCOUNT HE DENIED THE CHARGE NANCY MCCLURE SORG NEWARK DEL A BROKER WITH MERRILL LYNCH FORMERLY EMPLOYED BY DEAN WITTER SETTLED CHARGES THAT SHE MADE UNSUITABLE AND EXCESSIVE TRADES IN A CUSTOMER'S ACCOUNT MISREPRESENTED THE RISKS OF PURCHASING SECURITIES ON MARGIN OR BORROWED MONEY AND OTHER VIOLATIONS SHE WAS FINED 5000 AND SUSPENDED FOR 30 DAYS SHE DIDN'T ADMIT OR DENY CHARGES LAWRENCE ELLIOT MARCUS CORAL SPRINGS FLA A FORMER PAINEWEBBER BROKER WAS BARRED FOR FOUR MONTHS FOR MAKING UNSUITABLE MARGIN TRANSACTIONS FOR CUSTOMERS HE DIDN'T ADMIT OR DENY CHARGES RICHARD ROBERT WHATLEY SALT LAKE CITY A FORMER BROKER WITH SHEARSON LEHMAN HUTTON WAS BARRED FOR FIVE YEARS FOR WRITING CHECKS ON HIS FIRM ACCOUNT AND HIS BANK WITH INSUFFICIENT FUNDS HE DIDN'T ADMIT OR DENY CHARGES BERTRAM HOWARD FREED MENANDS NY A BROKER WITH KIDDER PEABODY & CO WAS SUSPENDED FOR FOUR WEEKS FINED 2500 BARRED ONE YEAR FROM ENTERING OPTIONS ORDERS AND BARRED THREE YEARS FROM EXERCISING DISCRETIONARY POWER MR FREED DIDN'T ADMIT OR DENY CHARGES THAT HE EXERCISED DISCRETIONARY POWER IN AN ACCOUNT WITHOUT WRITTEN AUTHORIZATION PROVIDED ERRONEOUS INFORMATION TO HIS FIRM AND GAVE A CUSTOMER ERRONEOUS PROFIT AND LOSS STATEMENTS KENNETH CHIN HOE SWONG NEW YORK A FORMER TRADER WITH GOLDMAN SACHS & CO WAS SUSPENDED FOR ONE MONTH HE DIDN'T ADMIT OR DENY CHARGES THAT HE BOUGHT MORE SHARES THAN HE HAD REPORTED TO A CUSTOMER PLACED THOSE SHARES IN AN ACCOUNT AND SOLD THEM TO THE CUSTOMER AT A HIGHER PRICE THAN HE PAID FOR THEM AMONG OTHER VIOLATIONS JOHN G CROWTHER JR MANCHESTER VT A FORMER MEMBER OF THE EXCHANGE WAS BARRED FOR SIX WEEKS HE DIDN'T ADMIT OR DENY THAT HE EMPLOYED AS A CONSULTANT A FORMER FLOOR BROKER WHO HAD BEEN PROHIBITED FROM ASSOCIATION WITH A MEMBER OR MEMBER FIRM 9305280093 930528 POLITICS & POLICY DEMOGRAPHERS TRACK DOWN THE CAUSE OF CLINTON'S BEHAVIOR HE'S A BOOMER BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MOST AMERICANS INSTINCTIVELY SENSE THAT BILL CLINTON SOMEHOW DIFFERS FROM EVERY OTHER PRESIDENT THEY HAVE KNOWN MAYBE IT'S THE BABYBOOMER THING IF HE SEEMS MORE UNFOCUSED AND LESS STRUCTURED MORE INTERESTED IN CONSULTING WITH HIS WIDE RANGE OF FRIENDS AND LESS IMPRESSED BY ADVICE FROM GRAYHAIRED VETERANS THERE'S A REASON FOR IT HE'S JUST A STEREOTYPICAL BABY BOOMER SAYS DEMOGRAPHER AND FELLOW BOOMER WILLIAM DUNN THAT MEANS HE TENDS TO BE A LITTLE SELFINDULGENT AND PRETTY MUCH CONVINCED HE AND HIS GENERATION ARE SMARTER THAN EVERYONE ELSE THE BABYBOOM GENERATION THE 77 MILLION AMERICANS BORN BETWEEN 1946 AND 1964 30 OF THE WHOLE POPULATION IS THE NATION'S LARGEST IT INCLUDES ALL KINDS OF PEOPLE COLLEGE PROFESSORS AND BRICKLAYERS VIETNAM HEROES AND VIETNAM PROTESTORS LIBERALS AND CONSERVATIVES BUT EVEN THOUGH NO ONE PERFECTLY FITS ANY STEREOTYPE AND NO GENERATION CAN BE PACKAGED NEATLY INTO DEMOGRAPHIC AND SOCIOLOGICAL BOXES DEMOGRAPHERS SAY THAT IF YOU FOCUS ON THE COLLEGEEDUCATED BOOMERS AN ASTONISHING 50 OF THE TOTAL CERTAIN SIGNIFICANT CHARACTERISTICS BEGIN TO EMERGE ON THAT BASIS THERE REALLY ARE FUNDAMENTAL DIFFERENCES BETWEEN THIS GENERATION AND ALL THOSE THAT WENT BEFORE IT SAYS MS RICHE MR CLINTON WHO BARELY QUALIFIES AS A BOOMER HE WAS BORN IN 1946 THE YEAR IT ALL BEGAN BRINGS THOSE DIFFERENCES TO THE WHITE HOUSE AS THE NATION'S FIRST BOOMER PRESIDENT THE FIRST IS A STRONG BELIEF IN ONE'S OWN IMPORTANCE AND VIRTUE DEMOGRAPHER CHERYL RUSSELL A BOOMER HERSELF SAYS IN HER LATEST BOOK THE MASTER TREND HOW THE BABYBOOM GENERATION IS REMAKING AMERICA THAT BABY BOOMERS DISCOVERED EARLY ON THAT THEY COULD GET WHAT THEY WANTED WHEN THEY WANTED IT SHE SAYS THEY CAN CREDIT THIS SUCCESS TO THEIR PARENTS WHO TAUGHT THEM TO THINK FOR AND OF THEMSELVES RAISING THE FIRST GENERATION OF INDIVIDUALISTS BOOMERS TEND TO TAKE THEMSELVES SERIOUSLY FIFTY YEARS AGO MS RUSSELL SAYS AMERICANS WERE ASKED IF THEY THOUGHT THEY WERE IMPORTANT PEOPLE AND ONLY 11 OF THE WOMEN RESPONDING TO THE SURVEY AND 20 OF THE MEN SAID YES NOW MS RUSSELL ADDS SURVEYS HEAVILY INFLUENCED BY BOOMER ATTITUDES SHOW MORE THAN 60 OF BOTH MEN AND WOMEN CONSIDER THEMSELVES TO BE IMPORTANT PEOPLE IT'S A PROFOUND CHANGE SHE NOTES AND IT'S NO WONDER BOOMERS HAVE HAD SO MANY ADVANTAGES THEY'VE BEEN TOLD SO MANY TIMES HOW WONDERFUL THEY ARE THEY THINK THEY CAN DO ALMOST ANYTHING SAYS MS RICHE THEY KNOW THEY'VE GOT A LOT OF ABILITY NO ONE ARGUES THAT THE BOOMER WAY OF DOING THINGS IS NECESSARILY RIGHT OR WRONG MS RUSSELL IN FACT DEFENDS BOOMERS FOR LOOKING OUT FOR NO 1 THEY NEED TO DO THAT THEY NEED TO DEVELOP ALL KINDS OF SKILLS IT'S A CUTTHROAT WORLD OUT THERE IT'S ANOTHER BOOMER CHARACTERISTIC THAT THEY ARE MEDIAOBSESSED IT IS HARDLY A SURPRISE THAT ONE OF MR CLINTON'S CLOSEST FRIENDS IS HARRY THOMASON A MULTIMILLIONAIRE HOLLYWOOD PRODUCER OR THAT MOVIE STAR BARBRA STREISAND WAS AN EARLY WHITE HOUSE GUEST BOOMERS BEGAN WITH LEAVE IT TO BEAVER THEY'RE THE FIRST GENERATION BROUGHT UP ON TV IN THE HOME NOW THEY GO CHANNELSURFING ON CABLE TV MUCH IN THE SAME WAY AS MR CLINTON SEEMS TO GO SURFING FROM ONE CRISIS ONE PROBLEM TO ANOTHER THEY'RE USED TO REMOTE CONTROL SAYS POLLSTER FRANK LUNTZ ANOTHER BOOMER THEY USE FAXES AND CELLULAR PHONES THEY LOOK FOR INSTANT GRATIFICATION BILL CLINTON KEEPS LOOKING FOR INSTANT GRATIFICATION BUT THAT DOESN'T WORK IN POLITICS YOU'VE GOT TO BE PATIENT IN POLITICS AND SOMETIMES YOU HAVE TO MAKE ENEMIES BOOMERS DEPLORE THE OLD ELITIST WAYS OF DOING BUSINESS TOUGH DIRECTIONS FROM THE TOP DOWN IN HER NEW BOOK MS RUSSELL SAYS THEY FOUGHT THE EXCLUSIVITY OF THE MIDDLECLASS WORLD OF THEIR PARENTS DEMANDING EQUAL OPPORTUNITY FOR BLACKS WOMEN AND OTHER LONGEXCLUDED GROUPS MORE THAN OTHER GENERATIONS BOOMERS TEND TO SHOW CONCERN FOR GAY AND ABORTION RIGHTS AND THAT TOO IS REFLECTED IN WHAT'S BEEN HAPPENING IN THE CLINTON PRESIDENCY WHAT THE NATION IS SEEING IN THE BATTLE BETWEEN BILL CLINTON AND BOB DOLE IS AT LEAST IN PART A GENERATIONAL STRUGGLE MR DOLE IS A STEREOTYPICAL MEMBER OF THE DEPRESSION/WORLD WAR II GENERATION AND HE BELIEVES IN DISCIPLINE THAT ISN'T BILL CLINTON'S STYLE HE AND HIS CLOSEST FRIENDS LIKE TO TALK THINGS THROUGH BOOMERS MS RICHE OBSERVES TEND TO HOLD A LOT OF MEETINGS AND CONFERENCES THEY KNOW ALL ABOUT NETWORKING SHE SAYS MR CLINTON OF COURSE IS A MASTER OF NETWORKING WITH HUNDREDS EVEN THOUSANDS OF PEOPLE ON HIS MASTER LISTS BECAUSE THEY CONSULT SO MUCH AND HOLD SO MANY MEETINGS BOOMERS TAKE A LOT OF TIME TO COME TO DECISIONS YOU'RE DEALING HERE WITH PEOPLE WHO ARE CONSTANTLY ORGANIZING AROUND THEMSELVES SAYS PETER MORRISON A DEMOGRAPHER AT RAND CORP THEY TAKE LONGER TO GET THE JOB DONE MAYBE IT'S INEFFICIENT BUT IT'S CHARACTERISTIC OF THE BABY BOOM GENERATION WHEN THEY WERE YOUNG MANY OF THEM MARCHING AGAINST THE WAR IN VIETNAM BOOMERS TOLD THEMSELVES TO DISTRUST ANYONE OVER 30 NOW AS TIME MARCHES ON THEY DISTRUST ANYONE OVER 50 THAT MEANS THE DEMOCRATS HAVING BEEN OUT OF OFFICE FOR 12 YEARS BILL CLINTON AND THE PEOPLE AROUND HIM DON'T TRUST HARDLY ANYONE WHO HAS BEEN IN GOVERNMENT BEFORE SAYS MS RICHE SO THEY'RE BACK TO GROUND ZERO REINVENTING EVERYTHING THERE ARE OF COURSE SOME GRAYHAIRED VETERANS IN THE CLINTON GOVERNMENT LLOYD BENTSEN AT TREASURY WARREN CHRISTOPHER AT STATE AND SOME OF MR CLINTON'S MOST TROUBLING SLIPUPS CAN BE LAID AT THE FEET OF WHITE HOUSE COUNSEL BERNARD NUSSBAUM WHO IS 56 YEARS OLD NONBOOMERS ARE NOT ALWAYS IMPRESSED BY BOOMERS OR SWEPT UP IN THE MEDIA'S CELEBRATION OF THE BOOMER PHENOMENON OLDER AMERICANS ESPECIALLY SAYS RAND'S MR MORRISON WORRY THAT BOOMERS ARE TOO CASUAL AND THAT THEY'RE NOT ORGANIZED WELL ENOUGH AND THAT THEY'RE NOT TRADITIONAL IN THEIR OUTLOOK THEY FEEL THIS IS ALL UNCHARTED TERRITORY AND IT WORRIES THEM THAT'S PRETTY CLOSE TO WHAT POLLSTER CELINDA LAKE HAS BEEN TURNING UP IN A NUMBER OF FOCUSGROUP SESSIONS SHE HAS CONDUCTED WITH VOTERS RECENTLY SHE SENSES A FEELING THAT MR CLINTON IS COMING ACROSS AS NAIVE AND NEW AND NOT FOCUSED ENOUGH ON THE ISSUES THAT DIRECTLY CONCERN VOTERS THEY SEE HIM AS AN OUTSIDER TRYING TO DO TOO MUCH AT ONCE THEY SEE HIM IN OTHER WORDS AS A BOOMER 9305280092 930528 FOREIGN EXCHANGE DOLLAR AGAIN HITS NEW LOW AGAINST YEN DESPITE INTERVENTION IN US AND JAPAN BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR DEFIED THE EFFORTS OF CENTRAL BANKS AND SENIOR FINANCE OFFICIALS ON BOTH SIDES OF THE PACIFIC THURSDAY PLUNGING AGAIN TO A NEW POSTWORLD WAR II LOW AGAINST THE YEN DESPITE REPEATED ROUNDS OF INTERVENTION AND BLUNT COMMENTS ABOUT EXCHANGE RATES THE DOLLAR'S WEAKNESS AGAINST THE YEN SPILLED OVER CAUSING IT TO FALL AGAINST MOST OTHER MAJOR CURRENCIES MARKET PARTICIPANTS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 10715 YEN DOWN FROM 10850 YEN LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 16025 MARKS DOWN FROM 16278 MARKS STERLING WAS TRADING AT 15630 UP FROM 15475 AT ABOUT MIDDAY IN TOKYO FRIDAY THE DOLLAR WAS TRADING AT 10758 YEN EARLIER DURING THE MORNING THE DOLLAR WAS QUOTED AT 15965 MARKS THE US CURRENCY'S LATEST TUMBLE AGAINST THE YEN WAS ROOTED VERY MUCH ON MOMENTUM THAT DEVELOPED TUESDAY WHEN A US TREASURY SEMIANNUAL REPORT ON THE INTERNATIONAL ECONOMY SAID A FIRMER YEN MIGHT PLAY SOME ROLE IN NARROWING JAPAN'S SPIRALING TRADE SURPLUSES ACCORDING TO GEOFFREY DENNIS INTERNATIONAL ECONOMIST AT JAMES CAPEL & CO INDICATIONS FROM SENIOR CLINTON ADMINISTRATION OFFICIALS THAT THE US FAVORS A STRONG YEN TO REDUCE JAPAN'S TRADE IMBALANCES HAVE BEEN INTEGRAL TO THE YEN'S 11 APPRECIATION AGAINST THE DOLLAR BETWEEN MIDFEBRUARY AND LATEAPRIL ACCORDING TO TRADERS THE DOLLAR'S FALL THURSDAY CAME IN SPITE OF PERSISTENT CENTRAL BANK ATTEMPTS TO HALT ITS SLIDE IN ASIAN TRADING THE BANK OF JAPAN WAS WIDELY SEEN AS HAVING BOUGHT DOLLARS FOR YEN AT SEVERAL DIFFERENT LEVELS BUT THE INTERVENTION HAD LITTLE EFFECT TRADERS SAID INTERVENTION BY THE JAPANESE CENTRAL BANK HAS FAILED TO STEM THE YEN'S RISE BEFORE AND THAT THE TIDE IN FAVOR OF THE YEN IS SO STRONG THAT NO ONE CENTRAL BANK ALONE CAN TURN IT IN NORTH AMERICAN TRADING THE FEDERAL RESERVE BANK OF NEW YORK WAS SEEN INTERVENING AT LEAST ONCE IN THE MORNING AT AROUND 1083510850 YEN BUT THAT FAILED TO TRIGGER ANY SUSTAINED REBOUND IN THE DOLLAR AND EVEN ENCOURAGED FURTHER DECLINES WHEN THE US CURRENCY TRADED BELOW THE INTERVENTION LEVELS WITHOUT FRESH CENTRAL BANK ACTIVITY DEALERS SAID IN THE AFTERNOON THE BANK AGAIN WAS SEEN BUYING DOLLARS ON SEVERAL OCCASIONS AT LEVELS BETWEEN 1072010740 YEN TRADERS SAID IT WASN'T CLEAR WHETHER THE FED WAS ACTING ON ITS OWN BEHALF OR AT THE BEHEST OF THE BANK OF JAPAN THIS TIME THE US CURRENCY RALLIED BUT ONLY MODESTLY SAID ROBERT RYAN MANAGER OF CORPORATE FOREIGN EXCHANGE AT BANK OF NEW YORK COMMENTS FROM LAWRENCE SUMMERS US TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS ALSO GAVE SOME SUPPORT TO THE DOLLAR IN THE AFTERNOON MR RYAN SAID SPEAKING TO REPORTERS MR SUMMERS REPEATED REMARKS HE MADE WEDNESDAY THAT THE US ISN'T SEEKING FURTHER YEN APPRECIATION AND HAS NO POLICY AIMED AT YEN APPRECIATION THE MARKET HAS MOVED TOO FAR TOO FAST HE ADDED IN TOKYO THURSDAY A SENIOR JAPANESE FINANCE OFFICIAL HAD ATTEMPTED TO TALK THE DOLLAR HIGHER AFTER THE BANK OF JAPAN WAS SPOTTED INTERVENING BUT NEITHER MOVE SUCCEEDED IN BOOSTING THE DOLLAR PARTICIPANTS SAID AND THE DOLLAR'S SUBDUED RECOVERY LATE THURSDAY AFTER FED INTERVENTION PROVED SHORTLIVED THE INTERVENTION DIDN'T WORK SAID BRIAN DOLAN A TRADER AT DAIICHI KANGYO BANK LTD NOTING THAT THE DOLLAR HAD FALLEN BELOW ALL THE LEVELS AT WHICH INTERVENTION HAD OCCURRED DURING THE DAY THE MARKET IS STILL OF THE MIND IT CAN TAKE THE DOLLAR LOWER THERE IS STILL A SENSE THAT THE US REALLY DOESN'T HAVE A PROBLEM WITH A STRONGER YEN MR DOLAN SAID TRADERS SAID THE DOLLAR'S IMMEDIATE DIRECTION AGAINST THE YEN CONTINUES TO BE DOWNWARD THE 10600YEN LEVEL PROBABLY IS A NEARTERM TARGET FOR THE MARKET JAMES CAPEL'S MR DENNIS SAID BUT HE AND OTHERS CAUTIONED THAT BECAUSE THE DOLLAR NOW TRADES IN PREVIOUSLY UNEXPLORED TERRAIN ITS MOVEMENTS HAVE BECOME MORE DIFFICULT TO PREDICT THE POUND MEANTIME SLUMPED AGAINST THE YEN AND MOST OTHER EUROPEAN CURRENCIES FOLLOWING THE APPOINTMENT OF KENNETH CLARKE AS CHANCELLOR OF THE EXCHEQUER OTHER BRITISH FINANCIAL MARKETS WERE LARGELY UNCHANGED WITH MANY PARTICIPANTS JUDGING THAT MR CLARKE WON'T SIGNIFICANTLY ALTER THE POLICIES OF OUTGOING CHANCELLOR NORMAN LAMONT 9305280091 930528 WHO'S NEWS MERRILL LYNCH CREATES KEY GROUP TO FOCUS ON BIGGEST CLIENTS NEW YORK MERRILL LYNCH & CO IN YET ANOTHER ORGANIZATIONAL SHIFT IS CREATING A SPECIAL GROUP TO CARRY OUT ITS STRATEGY OF FOCUSING MORE ON ITS BIGGEST CLIENTS THE INSTITUTIONAL SERVICE GROUP WILL BE HEADED BY JAMES A MCCARTHY PREVIOUSLY MERRILL LYNCH'S DIRECTOR OF INSTITUTIONAL SALES HE WILL BE RESPONSIBLE FOR COORDINATING COVERAGE OF THE COMPANY'S LARGEST DOMESTIC AND INTERNATIONAL CLIENTS HE REPORTS TO THE HEAD OF MERRILL'S DEBT AND EQUITY MARKETS DAVID H KOMANSKY WHO ANNOUNCED THE CHANGES IN AN INTERNAL MEMO YESTERDAY THE NEW INSTITUTIONAL CLIENT SERVICE GROUP IS A FOLLOWUP TO MERRILL'S MARCH 25 MANAGEMENT SHAKEUP THE COMPANY'S THIRD IN THREE YEARS BY ESTABLISHING AN OFFICE OF THE CHAIRMAN AND AN OFFICE OF THE CHIEF EXECUTIVE THE NATION'S LARGEST BROKERAGE FIRM INDICATED ITS INTENTION TO STRENGTHEN ITS CLIENT BUSINESS AS IT PREPARES TO FACE A NEW FORMIDABLE RIVAL SMITH BARNEY SHEARSON INC THAT FIRM IS A COMBINATION OF PRIMERICA CORP'S SMITH BARNEY HARRIS & UPHAM BROKERAGE SUBSIDIARY AND THE BROKERAGE AND ASSETMANAGEMENT UNITS OF AMERICAN EXPRESS CO'S DIVISION SHEARSON LEHMAN BROTHERS INC SMITH BARNEY SHEARSON IS EXPECTED TO BEGIN JOINT OPERATIONS FOLLOWING COMPLETION OF THE 115 BILLION TRANSACTION IN EARLY JULY TAKING OVER FOR MR MCCARTHY WILL BE JOSEPH M PETRI WHO HAD DIRECTED MERRILL'S GOVERNMENT TRADING FOREIGN EXCHANGE AND SECURITIES REPURCHASE AGREEMENT OR REPO FINANCE AREAS SEPARATELY MERRILL LYNCH ALSO ANNOUNCED IT IS REALIGNING ITS INVESTMENT BANKING STRUCTURE TO ENHANCE ITS COMMITMENT TO CLIENTS MERRILL'S INVESTMENT BANKERS WILL BE DIVIDED INTO THREE INTEGRATED TEAMS OF RELATIONSHIP MANAGERS AND CORPORATE FINANCE PROFESSIONALS ACCORDING TO HERBERT M ALLISON JR MERRILL'S EXECUTIVE VICE PRESIDENT IN CHARGE OF FINANCE AND ADMINISTRATION 9305280090 930528 KEMPER CONSIDERS BUYERS' INQUIRIES FOR SECURITIES UNIT LONG GROVE ILL KEMPER CORP DISCLOSED THAT IT'S RECEIVED A NUMBER OF INQUIRIES AND EXPRESSIONS OF INTEREST FROM POTENTIAL BUYERS FOR ITS UNDERPERFORMING SECURITIES BROKERAGE OPERATIONS THE FINANCIAL SERVICES AND INSURANCE CONCERN SAID THE INQUIRIES ARE UNDER REVIEW BUT NO DECISIONS HAVE BEEN MADE IT DIDN'T IDENTIFY WHO HAS MADE THE RECENT OVERTURES AND A KEMPER SPOKESWOMAN DECLINED TO ELABORATE ON WHETHER OR AT WHAT PRICE THE COMPANY WOULD BE WILLING TO SHED THE OPERATION THERE HAS BEEN SPECULATION FOR YEARS SHE CONCEDED THAT THE BROKERAGE BUSINESS WHICH AFTER A SPECIAL 20 MILLION CHARGE TO ADD TO ITS LITIGATION RESERVES AND NEARLY 5 MILLION IN CONSOLIDATION EXPENSES RACKED UP A 384 MILLION LOSS LAST YEAR MIGHT BE ON THE BLOCK THE JURORS FOUND A PREDECESSOR COMPANY BOETTCHER & CO 30 LIABLE FOR THE LOSSES OF INVESTORS IN MELRIDGE INC THE COMPANY SAID IT INTENDS TO VIGOROUSLY CONTEST THE VERDICT 9305280089 930528 BUSINESS BRIEF FNB ROCHESTER CORP AGREEMENT IS SIGNED FOR SALE OF ATLANTA NATIONAL BANK FNB ROCHESTER CORP ROCHESTER NY SAID IT SIGNED AN AGREEMENT IN PRINCIPLE TO SELL ITS ATLANTA NATIONAL BANK UNIT TO BATH NATIONAL BANK A UNIT OF BATH NATIONAL CORP A CLOSELY HELD BANK HOLDING COMPANY BASED IN BATH NY THE BANK HOLDING COMPANY SAID THAT UNDER TERMS OF THE AGREEMENT IT WILL RECEIVE A CASH PAYMENT EQUAL TO ATLANTA NATIONAL'S BOOK VALUE CURRENTLY 1452000 PLUS A CASH PREMIUM OF 550000 FNB ROCHESTER SAID THE AGREEMENT IS SUBJECT TO A DEFINITIVE AGREEMENT AND REGULATORY APPROVALS THE COMPANY SAID IT EXPECTS THE TRANSACTION TO BE COMPLETED LATE THIS SUMMER FNB ROCHESTER SAID THAT AS OF MARCH 31 ATLANTA NATIONAL HAD TOTAL ASSETS OF ABOUT 165 MILLION BATH NATIONAL CORP HAS TOTAL ASSETS OF 1975 MILLION 9305280088 930528 WHO'S NEWS CARNIVAL CRUISE NAMES DICKINSON PRESIDENT OF CRUISE OPERATION MIAMI CARNIVAL CRUISE LINES INC NAMED BOB DICKINSON PRESIDENT AND CHIEF OPERATING OFFICER OF ITS FLAGSHIP CRUISE OPERATION MR DICKINSON 50 YEARS OLD WAS FORMERLY SENIOR VICE PRESIDENT OF SALES AND MARKETING AT THE COMPANY IN HIS NEW ROLE MR DICKINSON WILL ASSUME DAILY OPERATING RESPONSIBILITIES FOR THE COMPANY'S CARNIVAL CRUISE BUSINESS THAT BUSINESS HAD BEEN HEADED BY MICKY ARISON CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE NEW STRUCTURE ALLOWS MR ARISON 43 MORE TIME TO FOCUS ON OTHER COMPANIES IN THE CARNIVAL GROUP SUCH AS ITS CRYSTAL PALACE HOTEL AND CASINO AND ITS OTHER CRUISE LINES THE COMPANY IS ALSO SEEKING SHAREHOLDER APPROVAL OF A NAME CHANGE TO CARNIVAL CORP TO REFLECT ITS RECENT EXPANSION INTO OTHER BUSINESSES DESPITE THE CHANGES A COMPANY SPOKESMAN SAID CARNIVAL WILL CONTINUE TO FOCUS PRIMARILY ON THE CRUISE BUSINESS MR DICKINSON IS PROMINENT IN THE INDUSTRY HAVING SERVED AS CHAIRMAN OF THE KEY TRADE GROUP CRUISE LINES INTERNATIONAL ASSOCIATION 9305280087 930528 TIME WARNER MAY FIND THAT SEAGRAM ITS NEW INVESTOR WON'T REMAIN IDLE BY WALL STREET JOURNAL REPORTERS LAURA LANDRO RANDALL SMITH AND EBEN SHAPIRO SEAGRAM CO'S LONG HISTORY AS AN AGGRESSIVE INVESTOR INDICATES THAT ITS 57 INVESTMENT IN TIME WARNER INC WHICH IT CALLS FRIENDLY MAY BE FAR FROM PASSIVE THE POWERFUL BRONFMAN FAMILY OF MONTREAL WHICH CONTROLS 372 OF SEAGRAM AND IS VALUED AT 4 BILLION MAY ALSO SEE AN OPPORTUNITY TO STEP INTO A POWER VACUUM CREATED BY THE DEATH IN DECEMBER OF TIME WARNER'S CHAIRMAN AND COCHIEF EXECUTIVE OFFICER STEVEN J ROSS THOUGH SEAGRAM EXPRESSED SUPPORT FOR HIS SUCCESSOR GERALD LEVIN MR LEVIN HAS BEEN IN HIS JOB JUST A FEW MONTHS AND HAS YET TO UNIFY FEUDING DIVISIONS WHO ARE STILL FIGHTING CULTURE AND STYLE DIFFERENCES LEFT OVER FROM THE 1989 MERGER OF TIME INC AND WARNER COMMUNICATIONS INC SEAGRAM SAID WEDNESDAY IT PLANS TO BUY AS MUCH AS 15 OF TIME WARNER SUGGESTING TO SOME THAT IT MAY ULTIMATELY SEEK A FAR MORE ACTIVE ROLE IN THE MANAGEMENT OF THE ENTERTAINMENT GIANT BUT WALL STREET GENERALLY DOESN'T APPEAR TO THINK ANY FIGHT FOR CONTROL IS IN STORE TIME WARNER STOCK FELL 625 CENTS TO CLOSE AT 37375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AND INVESTORS OF SEAGRAM A MONTREALBASED SPIRITS AND JUICE MAKER APPEARED LESS THAN PLEASED WITH THE INVESTMENT TRADING THE STOCK DOWN 875 CENTS TO 2925 ON THE BIG BOARD THEY SHOULD STICK TO THEIR BUSINESS SAID THOMAS G KAHN EXECUTIVE VICE PRESIDENT OF KAHN BROTHERS INVESTMENT MANAGEMENT IN NEW YORK A LARGE SEAGRAM SHAREHOLDER MY INITIAL REACTION IS NEGATIVE BUT WHILE SEAGRAM SCOUTED FOR ACQUISITIONS IN ITS MAIN BUSINESS FOR SEVERAL YEARS IT APPEARS TO HAVE SOURED ON THE BEVERAGE MARKET SINCE ITS 12 BILLION PURCHASE OF JUICEMAKER TROPICANA FIVE YEARS AGO SEAGRAM IS WIDELY VIEWED AS HAVING OVERPAID FOR THE COMMODITYJUICE BUSINESS AND DIM PROSPECTS FOR THE LIQUOR BUSINESS ALSO APPEAR TO HAVE CONVINCED SEAGRAM THAT ITS GROWTH AND INVESTMENT PROSPECTS ARE BRIGHTER ELSEWHERE EDGAR BRONFMAN JR PRESIDENT AND CHIEF OPERATING OFFICER CAME TO THE CONCLUSION THAT HE SHOULD PUT HIS BETS ON MULTIMEDIA AND TIME WARNER IS THE BEST BET SAYS ONE PERSON CLOSE TO HIM MOREOVER SEAGRAM HAS LOOKED CLOSELY AT TIME WARNER BEFORE ITS DISCLOSURE WEDNESDAY THAT SINCE FEBRUARY IT HAS ACCUMULATED 21 MILLION TIME WARNER SHARES IN THE OPEN MARKET FOR ABOUT 700 MILLION IN JULY 1992 THE COMPANY CONSIDERED AND THEN REJECTED A PROPOSAL BY SEAGRAM DIRECTOR PAUL DESMARAIS THAT SEAGRAM JOIN HIM AS PART OF AN INVESTOR GROUP NEGOTIATING TO TAKE A STRATEGIC STAKE IN THE TIME WARNER ENTERTAINMENT UNIT SEAGRAM OFFICIALS REVIEWED SOME TIME WARNER DOCUMENTS BUT VERY QUICKLY CONCLUDED THEY WERE NOT INTERESTED SAID A SEAGRAM SPOKESMAN HE SAID NO FORMAL PRESENTATION WAS MADE TO THE SEAGRAM BOARD CALLING LAST YEAR'S DISCUSSIONS VERY PRELIMINARY AND VERY BRIEF IN ITS FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SEAGRAM DISCLOSED THAT MR DESMARAIS CHAIRMAN OF MONTREAL MEDIA AND FINANCIAL SERVICES CONCERN POWER CORP OF CANADA HAS SEPARATELY ACQUIRED THREE MILLION TIME WARNER SHARES ONE MILLION OF THEM PURCHASED DURING TWO WEEKS IN LATE APRIL PEOPLE CLOSE TO SEAGRAM SAY THAT AFTER THE POWER CORP TALKS WITH TIME WARNER FELL APART OVER SUCH ISSUES AS MANAGEMENT CONTROL THE BRONFMANS ULTIMATELY DECIDED THEY WERE BETTER OFF BUYING TIME WARNER STOCK OUTRIGHT IN THE OPEN MARKET THAN JUST GETTING A PIECE OF A UNIT WITH NO CHANCE OF MANAGEMENT INFLUENCE TIME WARNER CONTINUED ITS SEARCH FOR STRATEGIC INVESTORS IN THE UNIT LAST WEEK BAGGING U S WEST INC WHICH AGREED TO PAY 25 BILLION TO TIME WARNER FOR A 25 STAKE IN THE ENTERTAINMENT UNIT TIME WARNER OFFICIALS WERE SAID TO BE TRAVELING AND NOT AVAILABLE FOR COMMENT SEAGRAM HAS BEEN QUICK TO COMPARE ITS TIME WARNER INVESTMENT TO THE 243 STAKE IN DUPONT CO THAT IT HAS HELD QUIETLY SINCE 1981 BUT SEAGRAM ACQUIRED THAT STAKE AS PART OF A SETTLEMENT OF ITS HOSTILE TAKEOVER BATTLE FOR OIL COMPANY CONOCO AND SOME SAY IT HAS NOT BEEN AS PASSIVE AN INVESTOR IN DUPONT AS IT PAINTS ITSELF I THINK THEY HAVE HAD A FAIR DEGREE OF INFLUENCE ON DUPONT BACKING MOVES TO BOOST THE DIVIDEND AND CUT COSTS SAYS FRED SIEMER PUBLISHER OF CHEMICAL RESEARCH FOR WALL STREET SEAGRAM IS NO STRANGER TO BATTLES HOWEVER IN 1988 IT BESTED GRAND METROPOLITAN PLC IN A SPIRITED TAKEOVER BATTLE FOR THE FRENCH COGNAC MAKER MARTELL SA THE ACQUISITION HAD STARTED AS A FRIENDLY DEAL BETWEEN MARTELL AND SEAGRAM BUT AS ANALYSTS NOTED THE BRONFMANS HAVE A MUCH GREATER PERSONAL INTEREST IN THE ENTERTAINMENT BUSINESS THAN IN EITHER CHEMICALS OR COGNAC EDGAR BRONFMAN JR HAS LONG PRODUCED MOVIES AND DABBLED IN HOLLYWOOD HE IS CLOSE PERSONALLY TO MICHAEL OVITZ CHIEF OF HOLLYWOOD'S CREATIVE ARTISTS AGENCY MR OVITZ APPARENTLY HELPED MAKE THE CONNECTION TO ALLEN & CO WHICH SERVED AS SEAGRAM'S ADVISER IN ITS PURCHASE OF THE TIME WARNER STOCK THIS ISN'T ALLEN & CO'S FIRST DEAL INVOLVING A BEVERAGE GIANT AND AN ENTERTAINMENT COMPANY CHAIRMAN HERBERT A ALLEN JR ENGINEERED THE SALE OF COLUMBIA PICTURES WHICH HE CONTROLLED TO COCACOLA CO IN THE 1980S AND THEN A FEW YEARS LATER BROKERED COKE'S SALE OF THE STUDIO TO SONY CORP WHILE FEW ON WALL STREET EXPECT ANY IMMEDIATE EFFECT FROM THE SEAGRAM INVESTMENT ONE INVESTMENT BANKER SAID SEAGRAM'S DECISION NOT TO INFORM TIME WARNER UNTIL AFTER IT GOT A 5 STAKE MIGHT BE A RED FLAG BUT HE NOTED THAT LOEWS CORP'S CHIEF EXECUTIVE LAURENCE TISCH GAINED CONTROL OF CBS INC WITH A 249 STAKE ONLY BY PERSUADING THE NEXTLARGEST HOLDER WILLIAM PALEY TO GET RID OF THENCBS CHAIRMAN THOMAS WYMAN THE LARGEST TIME WARNER SHAREHOLDER IS MONEYMANAGEMENT FIRM CAPITAL GROUP INC WHICH HOLDS AN 11 STAKE COMPANY OFFICIALS COULDN'T BE REACHED YESTERDAY BUT HAVE BEEN SUPPORTIVE OF MANAGEMENT WALL STREET OBSERVERS ARE ALSO INTRIGUED BY THE INVOLVEMENT OF MR DESMARAIS THE SEAGRAM'S DIRECTOR AND HIS POWER CORP A MONTREAL HOLDING COMPANY WITH INTERESTS IN FINANCIAL SERVICES NEWSPAPERS AND BROADCASTING SEAGRAM SAID MR DESMARAIS DID NOT PUSH THE IDEA THAT SEAGRAM BUY SHARES ON THE OPEN MARKET THE SEAGRAM SPOKESMAN SAID THAT MR DESMARAIS HAS EXCUSED HIMSELF FROM BOARD DISCUSSIONS INVOLVING THE TIME WARNER OPENMARKET INVESTMENT 9305280086 930528 LETTERS TO THE EDITOR MANY GOOD SOLDIERS SERVE UNDER A STIGMA CONGRATULATIONS ON YOUR APRIL 12 ARTICLE HOW AN ARMY LAWYER DECIDED TO END CAREER TO LIVE AS A GAY MAN JIM KENNEDY IS COURAGEOUS TO TAKE HIS STORY TO THE PUBLIC AND OPEN PEOPLE'S EYES ABOUT THE DISGRACEFUL BAN ON GAYS IN THE MILITARY JIM AND I WENT TO LAW SCHOOL TOGETHER AND ATTENDED THE ARMY'S JUDGE ADVOCATE GENERAL SCHOOL HIS STORY BROUGHT BACK MANY MEMORIES ALTHOUGH WE HAD SIMILAR EXPERIENCES IT WAS NOT UNTIL WE WERE BOTH OUT OF THE ARMY THAT WE DISCOVERED ANOTHER COMMON BOND THAT WE WERE BOTH GAY JIM'S STORY AND MY OWN EXPERIENCE SHOW ME THAT THE BAN ON GAYS IS IRRATIONAL GAYS AND LESBIANS CONTINUE TO PROVIDE VALUABLE QUALITY SERVICE IN THE MILITARY BUT THEY MUST SERVE UNDER THE STIGMA OF THE BAN MANY FEEL THEY CANNOT LIVE THAT WAY AND DECIDE LIKE JIM AND ME TO LEAVE THE MILITARY MANY CONTINUE TO SERVE BUT ALWAYS FEARFUL OF PERSECUTION THERE ARE GAYS AND LESBIANS WHO LIKE HETEROSEXUAL SOLDIERS ENGAGE IN INCIDENTS OF SEXUAL MISCONDUCT THOSE INCIDENTS SHOULD ALL BE ADDRESSED AS SEXUAL MISCONDUCT AND NOT FOR GAYS AND LESBIANS ADMINISTRATIVELY DEALT WITH THROUGH THE BAN THE FACT THAT I WAS GAY NEVER PREVENTED ME FROM DOING MY JOB AND SERVING MY COUNTRY IN 44 MONTHS OF SERVICE I GENERALLY KEPT MY PERSONAL AND PROFESSIONAL LIVES SEPARATE BUT FOR 35 OF THOSE MONTHS I OPENLY LIVED WITH ANOTHER MAN I DID NOT CREATE MYTHICAL GIRLFRIENDS OR JOIN IN FAG JOKES IF ANYONE I WORKED WITH KNEW I WAS GAY THEY NEVER SAID ANYTHING BECAUSE OF MY WORK AS AN ADMINISTRATIVE LAW OFFICER I HAD TO BE INVOLVED WITH AN ADMINISTRATIVE PROCEEDING UNDER THE BAN ONLY ONCE THE ADMINISTRATIVE SEPARATION OF A SENIOR OFFICER BASED ON CHARGES OF SEXUAL MISCONDUCT WITH A MINOR OF THE SAME SEX I DID HAVE INCREASED SENSITIVITY TO DEAL WITH LEGAL ISSUES LIKE THOSE ARISING FROM THE ADVENT OF HIV TESTING TO ENSURE CONFIDENTIALITY AND NONPERSECUTION I CAN RECALL THAT MY CONCERN IN THIS AREA AND MY DISMAY AT THE IGNORANCE OF HIV AND AIDS FACTS RAISED SUSPICION IN A FEW MINDS IT IS WELL PAST TIME FOR THE BAN TO GO IT IS NO MORE JUSTIFIABLE THAN PAST DISCRIMINATION AGAINST AND SEGREGATION OF BLACKS THE FEARS THAT ARE VOICED ARISE OUT OF IGNORANCE WHY SHOULD A FINANCIAL NEWSPAPER WASTE VALUABLE FRONT PAGE SPACE WITH AN ARTICLE ON JAMES EDWARD KENNEDY WHY A WHOLE INSIDE PAGE ON THE SAME SUBJECT AND WITH SUCH A LARGE GROUP OF ILLUSTRATIONS OBVIOUSLY IN PAINTING MR KENNEDY AS A HERO YOU WISH TO CONVINCE YOUR READERS THAT YOU ARE SYMPATHETIC TO GAYS WHETHER TO GET NEW SUBSCRIBERS OR TO APPEASE OLD ONES WE CAN ONLY WONDER BUT IF YOU MUST PROMOTE THE GAY CAUSE AT LEAST HAVE THE GRACE AND HONESTY TO DO SO NOT ON THE FRONT PAGE BUT ON THE EDITORIAL PAGE YOUR STORY WAS NONE TOO SUBTLE AND NOT APPCIATED BY MANY INCLUDING ME ARE YOU TRYING TO ALIENATE YOUR SUBSCRIBERS BY PROMOTING UNNATURAL LIFESTYLES 9305280085 930528 INDIA INVESTORS OVERCOME BOMBS AND RIOTS BUT NOT BUREAUCRACY BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL BOMBAY INDIA SINCE INDIA OPENED ITS STOCK MARKET TO FOREIGNERS EIGHT MONTHS AGO INVESTORS HAVE HAD TO ENDURE TUMBLING SHARE PRICES COMMUNAL RIOTS AND THE BOMBAY STOCK EXCHANGE'S DESTRUCTION BY A CAR BOMB BUT MANY FOREIGN INVESTORS INTENT ON TAKING PART IN INDIA'S BURGEONING MARKETS ARE FINDING THAT THE BIGGEST HURDLES AREN'T RIOTS OR BOMBS BUT BUREAUCRATS INDIA'S INFAMOUS RED TAPE HAS ENSNARED FOREIGN INVESTORS AND BROKERS ALIKE RAISING SERIOUS QUESTIONS ABOUT WHETHER THE RETURNS FROM INDIA ARE WORTH THE BOTHER WE WOULDN'T BE HERE IF WE WEREN'T ENTHUSIASTIC ABOUT INDIA'S PROSPECTS SAYS MARK BULLOUGH DIRECTOR OF JARDINE FLEMING INDIA SINCE LAST YEAR BUT HE POINTS OUT THAT HE HAS HAD A TOUGHER TIME STARTING AN INVESTMENT BUSINESS UNDER INDIA'S FINANCIAL RULES FOR FOREIGNERS THAN HE HAD SELLING PRIVATE BANKING SERVICES TO YEMENI NOMADS OR SETTING UP JOINT VENTURES WITH THE KGB FOR PERMISSION TO BUY AN INDIAN SHARE MR BULLOUGH'S INSTITUTIONAL CLIENTS MUST GIVE THE SECURITIES AND EXCHANGE BOARD OF INDIA FIVE YEARS OF AUDITED FINANCIAL STATEMENTS AND A DETAILED DESCRIPTION OF EACH OF THEIR OWN CLIENTS' INVESTMENT OBJECTIVES AND THAT'S THE NEW ABRIDGED VERSION OF THE RULES UNTIL A MONTH AGO APPLICANTS HAD TO ANSWER NINE PAGES OF QUESTIONS SO COMPLEX THAT EACH WAS ACCOMPANIED BY A LIST OF INSTRUCTIONS INDIVIDUAL INVESTORS NEEDN'T APPLY THEY AREN'T ALLOWED IN AT ALL THE SEBI HAS APPROVED ONLY 23 INSTITUTIONS OF THE MORE THAN 50 THAT HAVE APPLIED WE ONLY WANT LONGTERM INVESTORS WHO HAVE RELEVANT EXPERIENCE IN EMERGING MARKETS SAYS PRATIP KAR THE SEBI'S EXECUTIVE DIRECTOR IF WE LET IN JUST EVERYONE THEN WE WOULD BE LETTING IN BOTH THE MEN AND THE BOYS AMONG THE BOYS EXCLUDED WAS APAC HOLDINGS INC A FUND CREATED SPECIFICALLY TO INVEST IN INDIA THAT INCLUDES THE FRENCH GOVERNMENT'S SOCIAL SECURITY FUND THE KUWAIT INVESTMENT AUTHORITY AND PRINCETON UNIVERSITY'S ENDOWMENT REGULATORS SAY THEY CAN'T EASILY REMEMBER WHY THEY REJECTED THE FUND BUT FUND OFFICIALS SAY THE REJECTION WASN'T THE WORST PART OF THEIR EXPERIENCE WITH INDIAN BUREAUCRACY WHETHER WE WERE APPROVED OR NOT DOESN'T BOTHER US SAYS THE FUND'S MANAGER ALEX SEROFF BUT IT WOULD HAVE BEEN NICE TO GET AN ANSWER IN LESS THAN SIX MONTHS SUCH REJECTIONS AND DELAYS HAVE WEAKENED THE FLOW OF FOREIGN MONEY INTO INDIAN STOCKS AT A TIME WHEN INDIA CAN ILLAFFORD TO DISCOURAGE FOREIGN INVESTMENT AS THE INDIAN ECONOMY OPENS ITSELF TO FOREIGN COMPETITION DURING THE NEXT TWO YEARS EXPERTS ESTIMATE THAT INDIAN COMPANIES WILL NEED ABOUT 500 BILLION OF FOREIGN CAPITAL TO MODERNIZE AND BECOME COMPETITIVE INDIA'S ONCESOCIALIST GOVERNMENT HAS ALREADY SLASHED IMPORT TARIFFS REMOVED CONSTRAINTS ON CORPORATE GROWTH AND MADE ITS CURRENCY FREELY CONVERTIBLE INDIA'S MIDDLE CLASS COUNTED BY MANY ANALYSTS AT 150 MILLION PEOPLE AND GROWING FAST REPRESENTS POTENTIAL BIGTICKET CONSUMPTION UNMATCHED EVEN IN CHINA BUT INVESTING IN INDIA CAN BE A BEWILDERING EXPERIENCE FOR STARTERS THERE ARE SOME 7000 PUBLICLY TRADED COMPANIES FROM WHICH TO CHOOSE THERE'S A 30 CAPITALGAINS TAX FOR SHARES SOLD WITHIN A YEAR OF PURCHASE RESEARCH ON MOST ISSUES IS UNAVAILABLE BECAUSE UNTIL NOW IT HASN'T BEEN NEEDED THE COUNTRY'S BROKERS LIVE ON SPECULATION RATHER THAN ON BROKERING FOR LONGTERM INVESTORS ENAM SECURITIES PVT LTD IS ONE OF INDIA'S ONLY FIRMS TO WRITE SOPHISTICATED COMPANY REPORTS BUT THOSE REPORTS ARE INTENDED FOR A SELECT AUDIENCE OF NO MORE THAN A DOZEN BIG CUSTOMERS SAYS MANISH CHOKHANI AN ANALYST AT THE FIRM WE AREN'T BROKERAGE DRIVEN RESEARCH BY FOREIGN FIRMS WOULD LIKELY UNCOVER INDIA'S GOOD DEALS BUT THE ONLY WAY TO DO RESEARCH IS BY USING INDIAN ANALYSTS IF YOU'RE NOT AN INDIAN COMPANY IT'S BASICALLY ALMOST IMPOSSIBLE TO DO ANYTHING HERE SAYS JARDINE FLEMING'S MR BULLOUGH ONLY INDIAN BROKERS CAN WRITE A CONTRACT NOTE TELLING AN INVESTOR AN ORDER HAS BEEN EXECUTED IN EFFECT THAT PROHIBITS FOREIGN BROKERS FROM ANY ROLE IN TRADING SHARES FOR CLIENTS AND WITHOUT TRADING COMMISSIONS IT DOESN'T PAY FOR THEM TO DO MUCH RESEARCH ON COMPANIES THOSE RULES SHOULD GRADUALLY CHANGE IN COMING YEARS SAYS CHRISTOPHER BARROW DIRECTOR OF MARLIN PARTNERS LTD WHICH HAS A SMALL OFFICE IN BOMBAY BUT A BROKER OBVIOUSLY DOESN'T WANT TO GO IN AND BUILD A LARGE OPERATION TO FIND IT'S NO INCOME AND ALL COSTS FOR THREE YEARS BOMBAY'S BROKERS ARE NOTORIOUSLY CLUBBY AND OFTEN AGGRAVATE THE COUNTRY'S CREAKY SETTLEMENT SYSTEM BY OPERATING ACCORDING TO THEIR OWN UNWRITTEN RULES FOREIGN INVESTORS SAY A HONG KONGBASED BROKER WHO DOES BUSINESS IN INDIA RECALLS ARRANGING TO HAVE A CHUNK OF BLUECHIP INDIAN SHARES SOLD TO FOUR INVESTORS TWO OF WHICH WERE REGISTERED FOREIGN INSTITUTIONS IN MOST MARKETS THE TRANSACTION WOULD HAVE TAKEN PLACE IN MINUTES IN BOMBAY FOR REASONS THE BROKER SAYS HE CAN'T QUITE UNDERSTAND IT REMAINED INCOMPLETE SEVERAL WEEKS LATER 9305280084 930528 JAPAN ARRESTS ART DEALER IN CONNECTION WITH SALES TOKYO REUTER JAPANESE AUTHORITIES ARRESTED AN ART DEALER SUSPECTED OF EVADING TAXES ON PROFITS FROM SELLING TWO RENOIR PAINTINGS TO MITSUBISHI CORP THE COUNTRY'S BIGGEST TRADING HOUSE TAX OFFICIALS SEE THE CASE AS A SYMBOL OF THE RAMPANT TAX EVASION OF THE LATE 1980S THE HEADY YEARS OF JAPAN'S BUBBLE ECONOMY WHEN BILLIONAIRES VIED WITH LEADING CORPORATIONS TO PURCHASE FAMOUS ARTWORKS PROSECUTORS WERE SHOWN ON TELEVISION ARRESTING REIKO TACHIBANA 52 YEARS OLD AND RAIDING HER TOKYO HOME AND OFFICE FOR EVIDENCE THAT SHE HID 17 MILLION IN COMMISSION EARNED FROM THE 1989 SALE OF TWO PAINTINGS BY 19THCENTURY ARTIST PIERRE AUGUSTE RENOIR MS TACHIBANA IS EXPECTED TO BE CHARGED WITH EVADING CORPORATE TAXES TOTALING 700000 IN THE DEAL FOR RENOIR'S LATER WORKS YOUNG GIRL READING AND WOMAN AFTER BATHING ACCORDING TO JAPANESE NEWS REPORTS THE TOKYO PROSECUTORS' OFFICE DECLINED TO COMMENT AUTHORITIES BEGAN INVESTIGATING THE CASE TWO YEARS AGO AFTER REPORTS SURFACED ALLEGING THAT VAST AMOUNTS OF MONEY WERE UNACCOUNTED FOR IN THE DEAL A TOKYO TAX OFFICIAL DESCRIBED THE CASE AS AN EXAMPLE OF SECRET DEALMAKING IN THE SALE OF PAINTINGS AND OTHER WELLKNOWN ARTWORKS 9305280083 930528 WHO'S NEWS SK TECHNOLOGIES PICKS SHOEMAKER FOR POSTS AFTER FOUNDERS RESIGN BOCA RATON FLA SK TECHNOLOGIES CORP SAID CALVIN S SHOEMAKER A FLORIDA INVESTOR WAS NAMED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR FOLLOWING THE RESIGNATIONS OF THE COMPANY'S CEO AND FOUNDERS MR SHOEMAKER 52 YEARS OLD SUCCEEDS RANDY S SELMAN A COMPANY FOUNDER WHO SERVED AS PRESIDENT TREASURER CEO CHIEF OPERATING OFFICER AND A DIRECTOR MR SELMAN 37 SAID HE AGREED TO LEAVE AS PART OF THE COMPANY'S EFFORTS TO OBTAIN FINANCING FROM NEW INVESTORS I DIDN'T TURN THE COMPANY INTO A PROFITABLE VENTURE SAID MR SELMAN WHO WILL REMAIN A CONSULTANT TO THE COMPANY FOR SIX MONTHS IN ADDITION THE COMPANY SAID ITS TWO OTHER FOUNDERS WILLIAM J KESL 41 AND LAWRENCE K PIKE 40 RESIGNED AS DIRECTORS MR KESL ALSO RESIGNED AS EXECUTIVE VICE PRESIDENT BUT CONTINUES AS SECRETARY FOR A LIMITED TIME THE COMPANY ALSO NAMED THREE OTHER NEW DIRECTORS THEY ARE GARY SPIRER AND C SHELTON JAMES WHO HAVE WORKED AS OUTSIDE ADVISERS TO THE COMPANY AND DAVID PEIPERS AN INVESTOR WHO HOLDS A STAKE IN SK TECHNOLOGIES THE BOARD NOW HAS FOUR MEMBERS INSTEAD OF THREE FOR THE FISCAL THIRD QUARTER ENDED LAST DEC 31 THE SPECIALTY SOFTWARE MAKER REPORTED A NET LOSS OF 1 MILLION OR SEVEN CENTS A SHARE ON REVENUE OF 185068 9305280082 930528 BUSINESS BRIEF GFC FINANCIAL CORP GE SUBSIDIARY AGREES TO BUY MORTGAGE INSURANCE UNIT GFC FINANCIAL CORP OF PHOENIX SAID IT REACHED A DEFINITIVE AGREEMENT TO SELL ITS VEREX CORP MORTGAGE INSURANCE SUBSIDIARY TO GENERAL ELECTRIC CO'S MORTGAGE FINANCE UNIT TERMS WEREN'T DISCLOSED THE SALE IS SUBJECT TO REGULATORY APPROVALS SAM EICHENFIELD CHAIRMAN OF GFC FINANCIAL SAID HE EXPECTS THE TRANSACTION TO CLOSE BY JUNE 30 VEREX BASED IN MADISON WIS HASN'T WRITTEN ANY NEW INSURANCE SINCE LATE 1987 AND SHORTLY AFTER THAT IT WAS TREATED AS A DISCONTINUED OPERATION BY DIAL CORP GFC FINANCIAL WAS CREATED IN MARCH 1992 IN A DIAL SPINOFF TO SHAREHOLDERS VEREX'S CURRENT PORTFOLIO TOTALS ABOUT 158 BILLION OF INSURANCE IN FORCE GE CAPITAL MORTGAGE PART OF GENERAL ELECTRIC'S BIG FINANCIAL SERVICES UNIT GE CAPITAL CORP HAD ABOUT 134 BILLION OF MORTGAGE INSURANCE IN FORCE AT THE END OF 1992 A SPOKESMAN SAID GE CAPITAL IS BASED IN STAMFORD CONN AND PARENT GENERAL ELECTRIC IS IN FAIRFIELD CONN 9305280081 930528 INTERNATIONAL BRIEF MINOLTA CAMERA CO PRETAX LOSS OF 1258 MILLION IS REPORTED FOR FISCAL YEAR MINOLTA CAMERA CO A JAPANESE PRECISIONMACHINERY MAKER REPORTED AN UNCONSOLIDATED PRETAX LOSS OF 1364 BILLION YEN 1258 MILLION FOR THE FISCAL YEAR ENDED MARCH 1993 CITING THE EFFECTS OF THE STRONG YEN AND WEAK CONSUMER DEMAND THE COMPANY ALSO SAID IT WOULD PAY NO DIVIDEND LAST YEAR IT PAID 425 YEN ON A LOSS FOR THE YEAR OF 847 BILLION YEN SALES IN THE RECENTLY ENDED YEAR FELL 9 TO 19633 BILLION YEN FROM 21559 BILLION YEN MINOLTA PREDICTED THAT FOR THE CURRENT YEAR IT WILL POST ITS THIRD PRETAX LOSS IN A ROW CITING THE YEN'S CONTINUED RISE ECONOMIC WEAKNESS IN EUROPE AND THE LIKELIHOOD THAT JAPANESE CAPITAL INVESTMENT WILL REMAIN STAGNANT THE COMPANY ALSO SAID THAT IT DOES NOT EXPECT TO DISTRIBUTE A DIVIDEND AT THE END OF THE CURRENT YEAR 9305280080 930528 INTERNATIONAL BRIEF FIAT SPA CHIEF SAYS KICKBACK SCANDAL DIDN'T INVOLVE AUTO UNIT CESARE ROMITI CHIEF EXECUTIVE OFFICER OF FIAT SPA SAID THAT THE COMPANY'S KICKBACK INCIDENTS WERE LIMITED TO CERTAIN BUSINESSES THAT HANDLED PUBLIC CONTRACTS AND DIDN'T INVOLVE THE CORE AUTOMAKING UNIT FIAT AUTO NEVER PAID KICKBACKS MR ROMITI SAID SPEAKING ON ITALIAN TELEVISION CHANNEL TG5 THE KICKBACKS TO POLITICIANS HE STRESSED WERE A PHENOMENON THAT PERTAINED TO ONLY FIVE COMPANIES OUT OF A THOUSAND THOSE WHICH OPERATED IN THE PUBLICCONTRACTS SECTOR MR ROMITI HAS MAINTAINED THAT HE WASN'T INVOLVED PERSONALLY IN PAYING KICKBACKS TO POLITICAL PARTIES IN EXCHANGE FOR PUBLIC WORKS CONTRACTS HE HAS REPORTEDLY BEEN PLACED UNDER CRIMINAL INVESTIGATION IN CONNECTION WITH AN INQUIRY INTO ALLEGED CORRUPTION A TOTAL OF 12 TOP FIAT EXECUTIVES HAVE BEEN IMPLICATED IN THE CORRUPTION SCANDAL SO FAR 9305280079 930528 BUSINESS BRIEF HUNTINGTON BANCSHARES INC OHIO BANK HOLDING CONCERN COMFORTABLE WITH FORECASTS HUNTINGTON BANCSHARES INC IS COMFORTABLE WITH ANALYSTS' ESTIMATES OF 60 CENTS A SHARE TO 62 CENTS A SHARE IN THE SECOND QUARTER EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER GERALD R WILLIAMS SAID AS FOR ANALYSTS' 1993 ESTIMATES OF 248 A SHARE PROVIDED BY FIRST CALL CORP MR WILLIAMS SAID WE ARE COMFORTABLE WITH THE CONSENSUS IN THE 1992 SECOND QUARTER THE COLUMBUS OHIO BANK HOLDING COMPANY EARNED 336 MILLION OR 44 CENTS A SHARE IN 1992 NET WAS 139 MILLION OR 180 A SHARE HUNTINGTON WILL HAVE 16 BILLION IN ASSETS AFTER PENDING ACQUISITIONS ARE COMPLETED ON APRIL 21 THE COMPANY ANNOUNCED THE ACQUISITION OF COMMERCE BANC CORP CHARLESTON WEST VIRGINIA HUNTINGTON ANNOUNCED TWO ACQUISITIONS IN 1992 CB&T FINANCIAL CORP FAIRMONT WVA AND CHARTER OAK FINANCIAL CORP CINCINNATI 9305280078 930528 REVIEW & OUTLOOK EDITORIAL CHINA'S FAILED COVERUP TRY AS BEIJING MIGHT TO DEFY GRAVITY NEWS TRAVELS FAST FROM THE TOP OF THE WORLD IN THE TIBETAN CAPITAL OF LHASA MANY HUNDREDS OF PEOPLE HAVE TAKEN TO THE STREETS IN RECENT DAYS TO PROTEST 42 YEARS OF CHINESE RULE ACCORDING TO EYEWITNESSES INTERVIEWED BY TELEPHONE CHINESE TROOPS USED TEAR GAS AGAINST THE DEMONSTRATORS AND ONE BYSTANDER CLAIMED TO HAVE HEARD GUNSHOTS THOUGH THERE HAVE BEEN NO CONFIRMED REPORTS OF DEATHS OR INJURIES REMARKABLY THE CHINESE AUTHORITIES IN LHASA HAD A PATHETIC BELIEF THAT THEY COULD HUSH UP THIS HUMAN EXPLOSION SOLDIERS POSTED NOTICES IN LOCAL HOTELS INSTRUCTING FOREIGNERS WHO WERE WARNED TO STAY OFF THE STREETS NOT TO SPEAK OF WHAT THEY HAVE SEEN ONLY IN CHINA THAT THEY THOUGHT SUCH AN ORDER WOULD MUZZLE WITNESSES IS A MARK OF HOW BACKWARD SOME CHINESE AUTHORITIES STILL ARE IN THIS AGE OF INSTANT COMMUNICATION CHINA IS GETTING MUCH FAVORABLE PUBLICITY FOR ITS MARKETDRIVEN ECONOMIC ADVANCES BUT ITS POLICE STATE COPS ARE STILL IN THE DARK AGES IT REMAINS TO BE SEEN HOW THE TIBETAN SAGA PLAYS OUT BEIJING TAKES A VERY HARD LINE TOWARD THE OUTSIDE WORLD ON THE TIBET ISSUE SAYING IN EFFECT THAT TIBET IS OURS AND WE PLAN TO KEEP IT IMPERIALISM LIVES IN CHINA IF ALMOST NOWHERE ELSE BUT THE NOTICES TO FOREIGNERS WERE FOR WHATEVER IT IS WORTH A SIGN OF INCREASING SENSITIVITY TO WORLD OPINION HOWEVER NAIVE THEY MIGHT HAVE BEEN THE CHINESE NOW KNOW FROM THE PRICE THEY PAID FOR TIANANMEN SQUARE THAT THE WORLD'S OPINION COUNTS FOR SOMETHING AFTER ALL 9305280077 930528 TOYOTA IS STANDOUT ONCE AGAIN ON JD POWER'S QUALITY SURVEY BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT TOYOTA MOTOR CORP ONCE AGAIN DOMINATED THE WIDELY WATCHED JD POWER & ASSOCIATES QUALITY SURVEY FOR 1993 CARS DESPITE DETROIT'S CLAIM THAT IT HAS CLOSED THE QUALITY GAP WITH JAPAN STILL THERE WAS GOOD NEWS FOR GENERAL MOTORS CORP AND FORD MOTOR CO BOTH OF WHICH RECEIVED OVERALL QUALITY SCORES HIGHER THAN ALL BUT THE THREE LARGEST JAPANESE CAR MAKERS CHRYSLER CORP WHICH HAS BEEN POSTING BIG GAINS IN MARKET SHARE THIS YEAR DIDN'T FARE SO WELL ITS OVERALL QUALITY AVERAGE WAS WELL BEHIND FORD AND GM AND ITS HIGHLY TOUTED NEW LH SEDANS FAILED TO MAKE THE TOP 10 LIST AND CHRYSLER SUFFERED AN EMBARRASSING SETBACK IN JAPAN YESTERDAY THE RECALL OF MORE THAN HALF THE VEHICLES IT SOLD IN THAT COUNTRY DURING THE LAST FOUR YEARS BECAUSE OF POSSIBLE BRAKE FAILURE SEVEN CARS BUILT BY TOYOTA INCLUDING THE TOPRATED LEXUS LS 400 AS WELL AS THE CAMRY PASEO COROLLA AND TERCEL MADE THE TOP 10 LIST ALONG WITH TWO CARS FROM NISSAN MOTOR CO'S INFINITI DIVISION AND ONE FROM HONDA MOTOR CO'S ACURA DIVISION THE TOP 10 LIST INCLUDED 12 CARS BECAUSE OF TIES THE FORD CROWN VICTORIA TIED FOR SIXTH PLACE AND THE BUICK PARK AVENUE TIED FOR 10TH WERE THE HIGHEST DOMESTIC CARS TOYOTA ALSO DOMINATED THE TRUCK AND VAN RATINGS GM WHICH AVERAGED 108 DEFECTS A CAR SAID ITS DEFECT RATE DROPPED 21 FROM THE 1992 POWER SURVEY THE BIGGEST IMPROVEMENT OF ANY MANUFACTURER POWER'S SURVEY OF INITIAL QUALITY COUNTS THE AVERAGE NUMBER OF DEFECTS FOUND ON EACH 1993 MODEL DURING THE FIRST 90 DAYS OF OWNERSHIP THE POWER SURVEY PROVES THE QUALITY BATTLE IS TURNING OUT TO BE A COMPANYTOCOMPANY COMPETITION INSTEAD OF A COUNTRYTOCOUNTRY COMPETITION SAID RONALD HAAS GM'S VICE PRESIDENT OF RELIABILITY WHILE MANY AUTO ANALYSTS AGREE WITH THAT ASSESSMENT DETROIT INVOKES THE IDEA OF COUNTRYTOCOUNTRY COMPETITION WHEN IT SUITS ITS PURPOSE THIS WEEK FOR EXAMPLE THE BIG THREE AND THE UNITED AUTO WORKERS UNION INVITED THOUSANDS OF GOVERNMENT LEADERS TO DRIVE AMERICAN QUALITY DAY IN WASHINGTON TO BOAST OF QUALITY IMPROVEMENTS COMPARED WITH THE JAPANESE WHO WERE EXCLUDED FROM THE EVENT PRESIDENT CLINTON WHO ATTENDED AND DROVE A FORD MUSTANG PROCLAIMED DETROIT WAS WINNING THE QUALITY RACE BUT THE LATEST POWER SURVEY SHOWS THAT ISN'T QUITE TRUE OVERALL AMERICAN CARS AVERAGED 113 DEFECTS A CAR THAT IS A BIG IMPROVEMENT FROM A RATE OF 136 DEFECTS IN THE 1992 SURVEY AND VASTLY BETTER THAN THE AVERAGE OF SIX TO EIGHT DEFECTS RECORDED BY THE BIG THREE DURING THE MID1980S STILL THE AMERICANS TRAILED ASIAN MANUFACTURERS WHO AVERAGED 094 DEFECTS A CAR DOWN FROM 105 DEFECTS THE PREVIOUS YEAR THE DIFFERENCE MEANS THE QUALITY GAP HAS SHRUNK FROM A CANYON TO A GULLY BUT POWER'S ASIAN CATEGORY INCLUDES KOREAN AS WELL AS JAPANESE CAR COMPANIES THE GAP WOULD HAVE BEEN SOMEWHAT WIDER HAD THE JAPANESE BEEN GIVEN A SEPARATE AVERAGE EUROPEAN CAR MAKERS AVERAGED 128 DEFECTS A CAR IN THE SURVEY DOWN FROM A 158 AVERAGE LAST YEAR THE LAGGARD AMONG THE BIG THREE WAS CHRYSLER BUT POWER DOESN'T DISCLOSE THE DEFECT RATE OF ANY COMPANY BELOW THE AVERAGE A CHRYSLER SPOKESWOMAN SAID THE QUALITY OF HIGHLY ACCLAIMED LH CARS HAD COME A LONG WAY SINCE THE POWER SURVEY WAS CONDUCTED STILL THE SPOKESWOMAN SAID THE LH'S DEFECT RATE WHICH POWER DIDN'T RELEASE WAS A DISAPPOINTMENT SO WAS THE EMBARRASSING RECALL IN JAPAN THE CHRYSLER RECALL THERE COVERED 3197 JEEP CHEROKEES REGISTERED IN JAPAN BETWEEN JUNE 1989 AND JUNE 1991 THIS IS THE THIRD TIME CHRYSLER HAS RECALLED THE CHEROKEE IN JAPAN SINCE 1989 ACCORDING TO A SPOKESMAN FOR CHRYSLER'S DISTRIBUTOR THERE THE RECALL IS SURE TO HURT THE EFFORT BY CHRYSLER WHICH HAS REPEATEDLY CRITICIZED JAPAN FOR NOT BUYING MORE AMERICAN CARS TO OVERCOME THE JAPANESE PERCEPTION THAT THE QUALITY OF AMERICAN CARS ISN'T VERY GOOD TOYOTA SWEPT MOST OF THE TOP AWARDS IN THE POWER SURVEY ITS TRUCKS WERE TOPS IN FIVE OF SIX TRUCK CATEGORIES AND TOYOTA'S ASSEMBLY PLANT IN GEORGETOWN KY WAS RATED THE TOP QUALITY PLANT IN NORTH AMERICA EDGING A GM TRUCK PLANT IN FORT WAYNE IND THE TOYOTA CAMRY PRODUCED IN GEORGETOWN HAD A LOWER DEFECT RATE THAN THE SAME MODEL BUILT IN JAPAN IT'S A BIG DAY FOR US SAID JIM WISEMAN HEAD OF PUBLIC RELATIONS AT THE GEORGETOWN PLANT THE TOYOTA CAMRY PRODUCED IN GEORGETOWN HAD A LOWER DEFECT RATE THAN THE SAME MODEL BUILT IN JAPAN IT'S A BIG DAY FOR US SAID JIM WISEMAN HEAD OF PUBLIC RELATIONS AT THE GEORGETOWN PLANT TOYOTA'S LEXUS LS 400 WAS THE TOPRATED CAR FOR THE THIRD YEAR IN THE ROW ALTHOUGH ITS RATE OF 054 DEFECTS A CAR CLIMBED SLIGHTLY FROM THE PREVIOUS YEAR A LEXUS SPOKESMAN SAID THE RATE INCREASED BECAUSE TOYOTA RESTYLED THE CAR IN THE FALL IN PAST CAR MAKERS HAVE BUILT ADVERTISING CAMPAIGNS AROUND A TOP RANKING IN THE POWER SURVEY SALES OF THE BUICK LESABRE SURGED AFTER BUICK TRUMPETED ITS RANKING AS THE TOP DOMESTIC CAR IN 1989 BOTH TOYOTA AND GM SAID THEY WOULD ADVERTISE THEIR SCORES IN THIS YEAR'S SURVEY BUT FORD WHICH HAS BEEN CRITICAL OF POWER'S METHODOLOGY IN THE PAST SAID IT DIDN'T PLAN TO USE THE SURVEY IN ITS ADS ADVERTISING CLAIMS FROM POWER DON'T COME FREE THIS YEAR THE MARKET RESEARCH FIRM WILL ONCE AGAIN CHARGE CAR MAKERS A LICENSING FEE OF AS MUCH AS 60000 TO MAKE ADVERTISING CLAIMS THE FEE COVERS THE COST OF MONITORING ADS TO MAKE SURE THE CLAIMS ARE ACCURATE AND ISN'T A MAJOR SOURCE OF REVENUE SAID J FERRON A POWER SENIOR PARTNER YUMIKO ONO IN TOKYO CONTRIBUTED TO THIS ARTICLE 9305280076 930528 BUSINESS BRIEF U S WEST INC COMMUNICATIONS COMPANY TO SELL LENDING SUBSIDIARY U S WEST INC SAID IT PLANS TO SELL ITS U S WEST FINANCIAL SERVICES INC UNIT AND USE THE PROCEEDS FOR TELECOMMUNICATIONS INVESTMENTS THOSE INVESTMENTS INCLUDE REBUILDING THE TELEPHONE NETWORK IN ITS 14STATE TERRITORY AND ITS NEWLY ANNOUNCED VENTURE TO UPGRADE TIME WARNER INC'S CABLE TELEVISION NETWORKS THE COMMERCIAL AND CONSUMER LENDING UNIT EARNED 551 MILLION IN 1992 ON ASSETS OF 302 MILLION ITS BIGGEST COMMERCIAL LENDING IS FOR AIRCRAFT POWER PLANTS AND INDUSTRIAL EQUIPMENT RICHARD MCCORMICK U S WEST CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE ENGLEWOOD COLO COMPANY INVESTED IN FINANCIAL SERVICES DURING THE 1980S WHEN ITS CAPITAL NEEDS WERE COMPARATIVELY MODEST BUT WITH THE EMERGING GROWTH OPPORTUNITIES IN TELECOMMUNICATIONS PARTICULARLY IN THE AREA OF BROADBAND AND WIRELESS PERSONAL COMMUNICATIONS SERVICES IT'S TIME TO REDEPLOY OUR RESOURCES TO THAT AREA OF THE BUSINESS AT HOME AND ABROAD HE SAID 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 9305280075 930528 ENTERPRISE RECOVERY IS HELPING NATION'S AILING SMALL BUSINESSES FIRMS MAKE FRAGILE GAINS THAT COULD BE ERASED BY A QUICK SLOWDOWN BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL AT LAST THE ECONOMY IS HELPING TO HEAL THE NATION'S SICK SMALL FIRMS A LOT OF TURNAROUND EFFORTS HAVE BEEN AIDED BY THE RECOVERY SAYS RONALD VOLLMAR A CLEVELAND PARTNER FOR PRICE WATERHOUSE'S BUSINESSTURNAROUNDSERVICES GROUP WHICH MAINLY ADVISES SMALL BUSINESSES CLEARLY THE ECONOMIC IMPROVEMENT IS COMING TOO LATE TO RESCUE SOME AILING FIRMS WHOSE FINANCIAL PROBLEMS HAD GROWN TOO SERIOUS TO OVERCOME BUT THE UNIVERSAL CRISIS OF A COUPLE OF YEARS AGO IS OVER SAYS JOSEPH CARUSO A WESTWOOD MASS TURNAROUND CONSULTANT FOR SMALLER COMPANIES BUSINESS FAILURES IN THIS YEAR'S FIRST QUARTER DECLINED 102 TO 23180 FROM 25824 A YEAR EARLIER DUN & BRADSTREET CORP SAYS THE DROP THE SECOND CONSECUTIVE QUARTERLY DECLINE IN FAILURES FROM YEAREARLIER LEVELS IS A CLEAR SIGNAL THAT THE ECONOMIC RECOVERY IS FIRMLY IN PLACE SAYS JOSEPH DUNCAN D&B'S CHIEF ECONOMIST MOST FAILURES TRACKED BY D&B INVOLVE SMALL BUSINESSES IMPROVING MARKET CONDITIONS HELPED TO SAVE SABAL HOTEL LTD FROM BECOMING A RECESSION CASUALTY THE SMALL ATLANTA CONCERN WHICH OWNS A 265ROOM HOTEL IN TAMPA FLA SUFFERED WHEN OUTOFSTATE BUSINESSES STARTED TO TRIM THEIR SPENDING ON FLORIDA MEETINGS AND CONVENTIONS IN 1990 RECALLS IAN LLOYDJONES PRESIDENT OF A MANAGEMENT COMPANY THAT RUNS THE HOTEL A YEAR LATER SABAL WAS FORCED TO FILE FOR BANKRUPTCYCOURT PROTECTION FROM ITS CREDITORS SABAL EMERGED FROM BANKRUPTCY COURT LAST YEAR AFTER ITS HOTEL'S OCCUPANCY RATE BEGAN RISING AGAIN FIRSTQUARTER OPERATING PROFIT ROSE 20 FROM A YEAR EARLIER MR LLOYDJONES SAYS THE IMPROVEMENT RESULTED PARTLY FROM REPOSITIONING THE PROPERTY AS AN UPSCALE HOTEL STILL SABAL COULDN'T HAVE MADE IT WITHOUT THE RECOVERY SAYS CHARLES TATELBAUM THE CONCERN'S BANKRUPTCY LAWYER BUT A QUICK SLOWING IN THE ECONOMY'S MOMENTUM WHICH REMAINS POSSIBLE COULD ERASE THE FRAGILE GAINS OF REVIVING SMALL COMPANIES INDEED OPTIMISM ABOUT THE ECONOMY AMONG THE CHIEF EXECUTIVE OFFICERS OF 400 FASTGROWING SMALL FIRMS DECLINED DURING THE FIRST QUARTER ACCORDING TO A SURVEY BY ACCOUNTANTS COOPERS & LYBRAND IN MARCH 59 OF THE CEOS SAID THEY WERE UPBEAT ABOUT THE ECONOMY DOWN FROM THE 73 WHO SAID SO IN DECEMBER THERE'S A LITTLE LIGHT AT THE END OF THE TUNNEL BUT IT'S BARELY DISCERNIBLE SAYS HOWARD COHEN VICE PRESIDENT OF PARENTE RANDOLPH ORLANDO CAREY & ASSOCIATES AN ALLENTOWN PA ACCOUNTING AND CONSULTING FIRM BUSINESS CONDITIONS HAVE STOPPED DETERIORATING BUT THERE ARE STILL A LOT OF TROUBLED SMALL BUSINESSES OUT THERE CLEARLY THE BENEFITS OF THE CURRENT RECOVERY ARE SPREAD UNEVENLY D&B REPORTS THAT BUSINESS FAILURES DURING THE FIRST QUARTER CONTINUED TO RISE IN 10 STATES INCLUDING CALIFORNIA CONNECTICUT MICHIGAN AND WASHINGTON IN CALIFORNIA MORE THAN 5000 BUSINESSES FAILED DURING THAT PERIOD I DON'T THINK THE CALIFORNIA ECONOMY IS ANYWHERE NEAR BOTTOMING OUT SAYS GARY SBONA CHAIRMAN AND CHIEF EXECUTIVE OF REGENT PACIFIC MANAGEMENT CORP A TURNAROUND MANAGEMENTCONSULTING CONCERN IN CUPERTINO CALIF IN ADDITION CERTAIN KINDS OF SMALLER COMPANIES CONTINUE TO FARE WORSE THAN OTHERS D&B FIGURES SHOW THAT THE SERVICE SECTOR'S 74 DROP IN BUSINESS FAILURES FROM THE YEAREARLIER LEVEL WAS HALF THE RATE OF DECLINE FOR SOME OTHER INDUSTRY GROUPS EVEN IN RAPIDLY REBOUNDING INDUSTRIES THE IMPROVING ECONOMY WILL HAVE A SHORTLIVED IMPACT IF A SMALL BUSINESS COUNTS SOLELY ON RISING DEMAND TO IMPROVE ITS FINANCIAL CONDITION TURNAROUND SPECIALISTS SAY IT'S CRUCIAL THAT TROUBLED COMPANIES TREAT AN ECONOMIC RECOVERY AS A SUPPLEMENT TO NOT A SUBSTITUTE FOR INCREASED COMPETITIVENESS CAUTIONS ROBERT DAREFSKY DIRECTOR OF COOPERS & LYBRAND'S BUSINESSREORGANIZATIONSERVICES GROUP IN HARTFORD CONN MY CONCERN IS THAT COMPANIES ARE VIEWING THE RECOVERY AS THE SOLUTION TO ALL THEIR PROBLEMS CONSIDER TYTRONICS INC A WALTHAM MASS MAKER OF ANALYTICAL EQUIPMENT THAT CONTROLS INDUSTRIAL PROCESSES AND MEASURES POLLUTION ITS SALES FELL 50 DURING A SINGLE QUARTER IN LATE 1990 THE COMPANY IMMEDIATELY LAID OFF TWO OF ITS 13 EMPLOYEES AND SLASHED REMAINING STAFF MEMBERS' SALARIES BY 20 RECALLS JACK WOLFE ITS PRESIDENT BUT THE TURNAROUND EFFORT WENT BEYOND CUTTING COSTS AND WAITING FOR THE ECONOMY TO IMPROVE TO MAXIMIZE THE RECOVERY'S IMPACT MR WOLFE SAYS HE ALSO PUSHED AHEAD WITH THE INTRODUCTION OF A NEW PRODUCT LINE AS A RESULT HE ADDS THE NEW LINE OF ANALYTICAL EQUIPMENT ACCOUNTED FOR A THIRD OF TYTRONICS' 30 INCREASE IN SALES TO 22 MILLION LAST YEAR WE BELIEVE WE'RE SEEING A SUSTAINABLE RECOVERY MR WOLFE SAYS DURING ITS SALES DOWNTURN TYTRONICS FUNDED NEWPRODUCT DEVELOPMENT THROUGH ITS COST REDUCTIONS AND SAVINGS FROM RESTRUCTURING ITS DEBT MR WOLFE CONCEDES THAT THE RECOVERY WILL BE CRUCIAL TO MAINTAINING SUCH SPENDING HIS ADMISSION RAISES A CRUCIAL POINT REGARDLESS OF INCREASED EFFICIENCY ENHANCED QUALITY OR ANY OTHER MANAGEMENT PRACTICE IT IS TOUGH TO REVIVE A STRUGGLING COMPANY THAT OPERATES IN A CONTRACTING MARKET INTERNAL EFFORTS CAN STABILIZE A COMPANY SAYS KEVIN BUSCH PRESIDENT OF INFINITY DELTA GROUP A BUFFALO GROVE ILL CONCERN THAT PROVIDES MANAGEMENT SERVICES TO TROUBLED SMALL BUSINESSES BUT WITHOUT THE ABILITY TO INCREASE REVENUE OR EXPAND MARKETS A COMPANY STILL RUNS THE RISK OF SLIPPING BACK INTO A CASH CRISIS 9305280074 930528 MARKETING BRIEF GENERAL MOTORS CORP DIRECTV OPERATION HAS PACT WITH TWO CANADIAN FIRMS DIRECTV INC LOS ANGELES SAID IT SIGNED A PROGRAMMING PACT WITH THE CANADIAN BROADCASTING CORP AND A UNIT OF POWER CORP DIRECTV IS A UNIT OF GM HUGHES ELECTRONICS CORP WHICH IN TURN IS CONTROLLED BY GENERAL MOTORS CORP DIRECTV SAID THE CANADIAN COMPANIES WILL PROVIDE TWO CHANNELS OF INTERNATIONAL NEWS DRAMA ARTS AND ENTERTAINMENT PROGRAMMING FOR THE DIRECTV DIRECT BROADCAST SATELLITE THAT IS SCHEDULED TO BEGIN BROADCASTING NEXT YEAR IN CANADA AND THE US DIRECTV SAID THE AGREEMENT OPENS UP A NEW DISTRIBUTION SYSTEM FOR CANADIANORIENTED PROGRAMMING FOR BOTH THE US AND CANADA DIRECTV PLANS TO OFFER ABOUT 150 CHANNELS OF SUBCRIPTION AND PAYPERVIEW ENTERTAINMENT AND INFORMATION PROGRAMMING THE DIGITAL SYSTEM WILL BE RECEIVED THROUGH 18INCH SATELLITE TELEVISION ANTENNAS AND A DECODER BOX 9305280073 930528 TRAVEL SUMMER PRICES MAY BE A SHOCK FOR VACATIONERS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL VACILLATING VACATIONERS MAY BE IN FOR SOME UNWELCOME SURPRISES THIS SUMMER FOR YEARS AIRLINES CARRENTAL FIRMS AND HOTELS HAVE BEEN ADDING CAPACITY LIKE CRAZY SO LASTMINUTE TRAVELERS COULD USUALLY BE ACCOMMODATED BUT NOW ALL THREE SEGMENTS OF THE TRAVEL INDUSTRY SEEKING TO SHORE UP THEIR BALANCE SHEETS ARE BEGINNING TO SCALE BACK THE RESULT AIRLINE SEATS WILL BE TOUGHER TO COME BY CAR PRICES WILL BE HIGHER AND HOTEL DISCOUNTS WILL BE LESS GENEROUS FOR AMERICAN TRAVELERS MANY OF WHOM HAVE DELAYED MAKING THEIR SUMMER TRAVEL PLANS THESE UNWANTED CHANGES WILL BE FELT KEENLY DURING THE PEAK SUMMERVACATION SEASON THE TRAVEL INDUSTRY IS SEARCHING FOR A NEW EQUILIBRIUM BETWEEN CAPACITY AND PRICING SAYS ROGER H BALLOU PRESIDENT OF AMERICAN EXPRESS TRAVEL RELATED SERVICES A UNIT OF AMERICAN EXPRESS CO FOR EXAMPLE AIRLINE SALES AND HOTEL DISCOUNTS NORMALLY RAMPANT DURING THE SUMMER WILL STILL BE AVAILABLE BUT WILL BE MORE RESTRICTIVE THIS TIME AROUND HE SAYS FOR THEIR PART TRAVEL EXECUTIVES ARE OFFERING THE SAME ADVICE THEY ALWAYS OFFER MAKE RESERVATIONS EARLY BUT THIS TIME CUSTOMERS PROBABLY OUGHT TO HEED IT THIS YEAR IT'S MORE IMPORTANT THAN EVER TO BOOK EARLY SAYS CRAIG KOCH EXECUTIVE VICE PRESIDENT OF HERTZ CORP A PARK RIDGE CORP UNIT BECAUSE US AUTO MAKERS HAVE CUT BACK THEIR SALE OF CARS TO RENTAL COMPANIES FLEETS MAY BE SQUEEZED WE HAVE PLENTY OF CARS FOR THE SUMMER BUT IT'S NOT THE SAME ENVIRONMENT AS IN PAST SUMMERS MR KOCH SAYS IF DEMAND TURNS ON WE JUST CAN'T GO OUT AND GET 100000 CARS TRAVEL IS STILL EXPECTED TO BE STRONG THIS SUMMER BUT NOT NECESSARILY IN DOLLARS SPENT THE NUMBER OF PERSONTRIPS ONE PERSON TRAVELING 100 MILES OR MORE AWAY FROM HOME IS EXPECTED TO INCREASE 4 COMPARED WITH LAST SUMMER ACCORDING TO A SURVEY BY THE TRAVEL INDUSTRY ASSOCIATION A TRADE ORGANIZATION AND THE AMERICAN AUTOMOBILE ASSOCIATION BUT MUCH OF THAT INCREASE STEMS FROM AUTO TRAVEL WHICH ACCOUNTS FOR MORE THAN 80 OF ALL SUMMER EXCURSIONS BIGTICKET TRIPS ARE ANOTHER MATTER INDUSTRY EXECUTIVES SAY FAMILIES ARE GENERALLY TRAVELING DOWN STAYING IN LESS EXPENSIVE HOTELS AND TAKING TRIPS THAT ARE SHORTER IN DURATION CLOSER TO HOME NOT SURPRISINGLY TRAVEL AGENTS REPORT GOOD BARGAINS ARE AVAILABLE FOR CRUISE LINES WHERE A NUMBER OF NEW SHIPS RECENTLY BEGAN OPERATING AND EUROPEAN PACKAGE DEALS HOTELS AND CARRENTAL COMPANIES ARE STILL OFFERING PLENTY OF DEALS TO FLEXIBLE TRAVELERS WHO PLAN IN ADVANCE BUDGET RENT A CAR A UNIT OF BEECH HOLDINGS CORP IS OFFERING AN INTERMEDIATESIZE CAR IN JUNE FOR 149 A WEEK OR 2112 A DAY COMPARED WITH ITS REGULAR DAILY PRICE OF 3753 NONETHELESS MANY TRAVELERS ARE DELAYING THEIR SUMMER PLANS FOR GOOD REASON OVER THE YEARS THE AIRLINES HAVE CONDITIONED CONSUMERS TO WAIT FOR BARGAINBASEMENT SALES A TREND THAT CULMINATED LATE LAST MAY WHEN THE INDUSTRY SLASHED SUMMER FARES BY 50 AND PUT AN ESTIMATED NINE MILLION ADDITIONAL FLIERS ON BOARD IN THE SUMMER SEASON PATIENT PASSENGERS WERE REWARDED EARLIER THIS MONTH WHEN WINGS HOLDINGS INC'S NORTHWEST AIRLINES INITIATED A SYSTEMWIDE 33 SUMMER SALE BUT TRAVEL EXECUTIVES SAY MANY CONSUMERS ARE STILL HOLDING BACK SOME PEOPLE ARE HOPING THE AIRLINES WILL AGAIN SLASH FARES WHILE OTHERS ARE SIMPLY NERVOUS ABOUT THE ECONOMY THE SLOWGROWTH ECONOMY OVER THE LAST THREE YEARS HAS CHANGED THE RULES OF THE GAME FOR TRAVELING SAYS CHRIS MILLER AN AIRFARE ANALYST AT USTRAVEL A NATIONWIDE TRAVEL AGENCY BASED IN ROCKVILLE MD VACATIONERS DEMAND FAR MORE VALUE NOW PARTICULARLY WITH AIRLINES THAN IN YEARS PAST MR MILLER SAYS THE AIRLINE INDUSTRY HOWEVER MAY NOT THROW CUSTOMERS MANY MORE BONES THIS SUMMER THAT IS IN PART BECAUSE AIR TRAFFIC HAS STEADILY IMPROVED THIS YEAR UP ABOUT 5 BUSINESS TRAVELERS ARE LEADING THE COMEBACK AND THAT MEANS THE AIRLINES WILL HAVE FEWER SEATS THIS SUMMER TO UNLOAD AT FIRESALE PRICES BUSINESS TRAVELERS WERE SQUEEZED LAST SUMMER BY VACATIONERS BUT THIS SUMMER YOU'LL FIND THE REVERSE SAYS DAVID PERELMAN PRESIDENT OF DMS TRAVEL INC IN NEW YORK A TRAVELMANAGEMENT COMPANY TRAVELERS THIS SUMMER WILL ALSO SEE MODEST REDUCTIONS IN AVAILABLE SEATS ON SOME CARRIERS AMR CORP'S AMERICAN AIRLINES FOR EXAMPLE WILL HAVE ABOUT 15 FEWER DOMESTIC AVAILABLE SEAT MILES ONE SEAT FLOWN ONE MILE THIS SUMMER COMPARED WITH LAST ON MANY CARRIERS SEAT AVAILABILITY IS GOING TO BE SNUG SAYS DAVID SWIERENGA CHIEF ECONOMIST FOR THE AIR TRANSPORT ASSOCIATION AN INDUSTRY RESEARCH GROUP A BIGGER PROBLEM MAY BE RENTAL CARS RENTAL PRICES ALREADY HAVE INCREASED BY 12 TO 18 THIS YEAR AS AUTO MAKERS CUT SUBSIDIES USED TO ENCOURAGE RENTAL COMPANIES TO BUY EXCESS VEHICLES NOW THE AUTO MANUFACTURERS HAVE QUIETLY INFORMED CARRENTAL COMPANIES THAT '94 CAR COSTS WILL BE INCREASING BY UP TO 20 AND THAT SUPPLY WILL BE CUT BACK FURTHER WHILE THOSE CARS WON'T APPEAR ON RENTAL LOTS UNTIL SEPTEMBER SOME RENTALCAR EXECUTIVES SAY THOSE NEW RATES MAY BE REFLECTED IN PRICE INCREASES THIS SUMMER WHEN DEMAND IS GREATEST PRICES WILL ALSO BE UNDER PRESSURE THIS SUMMER AS '93 CARS CONTINUE TO REPLACE CHEAPER '92 MODELS LAST SUMMER THE INDUSTRY INCREASED PRICES BECAUSE OF HEAVIERTHANANTICIPATED DEMAND BUT THIS SUMMER IT WILL BE BECAUSE OF HIGHER COSTS SAYS GEOFF CORBETT EXECUTIVE VICE PRESIDENT OF NATIONAL CAR RENTAL SYSTEM INC A UNIT OF GENERAL MOTORS CORP NATIONAL WILL INCREASE ITS SUMMER RATE BY ABOUT 7 HE SAYS TRAVEL AGENTS SAY RENTALCAR SHORTAGES WILL ONLY OCCUR IF AT ALL IN POPULAR DESTINATIONS LIKE FLORIDA AND HAWAII BUDGET SAYS ITS SUMMER FLEET IS DOWN 10 FROM LAST SUMMER AND ENCOURAGES TRAVELERS TO BOOK EARLY IF THEY WANT POPULAR SUMMER VEHICLES SUCH AS MINIVANS FOR FAMILIES SAYS DAVID J SPARKS BUDGET'S SENIOR VICE PRESIDENT OF MARKETING AND SALES EVERY SUMMER IS TIGHT 9305280072 930528 TECHNOLOGY BRIEF ESYSTEMS INC IBM TO HELP COMPANY SELL ROBOTIC DATA STORAGE GEAR DEFENSE CONTRACTOR ESYSTEMS INC IN A PUSH INTO THE COMMERCIAL TECHNOLOGY BUSINESS SAID INTERNATIONAL BUSINESS MACHINES CORP HAS AGREED TO HELP MARKET ITS ROBOTIC DATA STORAGE SYSTEM THE SYSTEM CALLED EMASS HAD PREVIOUSLY BEEN USED BY DEFENSE AND INTELLIGENCE AGENCIES TO STORE MASSIVE AMOUNTS OF INFORMATION ON TAPE CARTRIDGES THE TAPES STACKED IN A CABINET ARE RETRIEVED BY A ROBOTIC ARM AND PLUGGED INTO A READER WHERE THE DATA THEN CAN BE CALLED UP ON A COMPUTER WORKSTATION LINKED TO THE STORAGE SYSTEM THOUGH ESYSTEMS IN DALLAS HAS SOLD A FEW EMASS SYSTEMS TO MAJOR OIL COMPANIES WHICH USE THE 15 MILLION MACHINES TO KEEP TRACK OF SEISMIC DATA IT SO FAR HAS BEEN UNABLE TO BREAK INTO OTHER DATAINTENSIVE INDUSTRIES SUCH AS FINANCE AND ELECTRONIC DESIGN UNDER THE NEW ARRANGEMENT IBM WILL INCLUDE EMASS ALONG WITH OTHER DATASTORAGE SYSTEMS IT MARKETS WITH ITS RS 6000 LINE OF WORKSTATIONS 9305280071 930528 BUSINESS BRIEF PROVIDENT BANCORP INC OHIO SUES PRINCIPAL BANK OVER 1991 S&L ACQUISITION PROVIDENT BANCORP INC CINCINNATI SAID ITS PRINCIPAL BANK HAS BEEN SUED BY THE SUPERINTENDENT OF THE OHIO DIVISION OF SAVINGS AND LOAN ASSOCIATIONS IN CONNECTION WITH HUNTER SAVINGS ASSOCIATION WHICH PROVIDENT ACQUIRED IN 1991 THE SUIT ALLEGES PROVIDENT BANK OWES OHIO 159 MILLION RELATED TO HUNTER'S 1985 ACQUISITION OF ASSETS OF THE FAILED HOME STATE SAVINGS BANK PROVIDENT ACQUIRED HUNTER FROM AMERICAN FINANCIAL CORP THE HOLDING COMPANY OF CINCINNATI FINANCIER CARL H LINDNER MR LINDNER IS A MAJOR PROVIDENT SHAREHOLDER THE SUIT WAS FILED MONDAY BY SUPERINTENDENT WILLIAM J DRUMM IN HAMILTON COUNTY OHIO COURT OF COMMON PLEAS IN A NEWS RELEASE PROVIDENT SAID IT DOES NOT BELIEVE THE ULTIMATE RESOLUTION OF THE LAWSUIT WILL HAVE A MATERIAL IMPACT ON ITS FINANCIAL CONDITION THE BANK HOLDING COMPANY SAID IT HAS RESERVES WHICH IT BELIEVES ARE ADEQUATE TO COVER CERTAIN OF THE CLAIMS THE NEWS RELEASE ADDED THAT PROVIDENT WAS INDEMNIFIED BY THE SELLERS OF HUNTER FOR OTHER CLAIMS ALLEGED BY THE STATE 9305280070 930528 BUSINESS BRIEF SYNTEX CORP THIRDQUARTER NET FELL 68 ON RESTRUCTURING CHARGE SYNTEX CORP PALO ALTO CALIF SAID THIRDQUARTER NET INCOME FELL 68 AS A RESULT OF A RESTRUCTURING CHARGE THE DRUG COMPANY REPORTED PROFIT OF 408 MILLION OR 18 CENTS A SHARE COMPARED WITH 1259 MILLION OR 56 CENTS A SHARE A YEAR EARLIER THE LATEST RESULTS INCLUDE A 140 MILLION CHARGE TO COVER THE COMPANY'S PROLONGED RESTRUCTURING BEFORE THE RESTRUCTURING CHARGE SYNTEX HAD OPERATING PROFIT OF 1588 MILLION OR 66 CENTS A SHARE SALES FOR THE QUARTER ROSE 12 TO 5843 MILLION FROM 521 MILLION A YEAR AGO AS A RESULT OF STRONG VOLUME IN SEVERAL HUMAN PHARMACEUTICAL LINES SYNTEX SAID IT PLANS TO CUT 1400 JOBS BY THE END OF FISCAL 1995 LEAVING 9500 EMPLOYEES COMPARED WITH ABOUT 11700 WHEN THE RESTRUCTURING BEGAN LAST AUGUST FOR THE NINE MONTHS SYNTEX REPORTED NET OF 1538 MILLION OR 69 CENTS A SHARE DOWN 60 FROM 3798 MILLION OR 169 A SHARE A YEAR EARLIER THE PERIOD INCLUDES A 320 MILLION RESTRUCTURING CHARGE 9305280069 930528 CORRECTIONS & AMPLIFICATIONS A PROPOSED FRIENDLY MERGER BETWEEN PSI RESOURCES INC AND CINCINNATI GAS & ELECTRIC CO REQUIRES REGULATORY APPROVAL AS DOES A HOSTILE BID FOR PSI BY IPALCO ENTERPRISES INC YESTERDAY'S HEARD ON THE STREET COLUMN INCORRECTLY SAID THE PSICINCINNATI GAS DEAL ISN'T SUBJECT TO SUCH APPROVAL PEP BOYS AN AUTO PARTS AND REPAIR CHAIN SAID MANNY MOE & JACK THE TRIO USED IN PEP BOYS ADS SEVERAL YEARS AGO WERE BASED ON THE PARTNERS WHO FOUNDED THE CHAIN IN 1921 AND THAT IT CONTINUES TO USE THE CHARACTERS FOR LICENSED MERCHANDISE IN STORE OPENINGS AND FOR OTHER PUBLIC EVENTS TUESDAY'S ADVERTISING COLUMN ERRONEOUSLY STATED THAT AD AGENCY ADMARKETING HAD CREATED THE TRIO AND INCORRECTLY SAID IT HAD USED THEM IN ITS COMMERCIALS BUT NOW THE CHARACTERS WERE HEADED FOR THE UNEMPLOYMENT LINE 9305280068 930528 BUSINESS BRIEF COMINCO LTD CONCERN TO PARE WORK FORCE BY 3 AND IMPOSE COST CUTS COMINCO LTD SAID IT WILL LAY OFF 3 OF ITS WORK FORCE AND PUT IN PLACE OTHER COSTCUTTING MEASURES TO ENSURE FINANCIAL VIABILITY AT ITS ZINC AND LEAD OPERATION IN TRAIL BRITISH COLUMBIA THE VANCOUVER MINING CONCERN SAID IT EXPECTS THE MEASURES COMBINED WITH SOME INCREASES IN PRODUCTION TO BOOST OPERATING EARNINGS BY 50 MILLION CANADIAN DOLLARS US396 MILLION A YEAR WITHIN THREE OR FOUR YEARS COMINCO ALSO IS SEEKING SOME TAX BREAKS FROM THE BRITISH COLUMBIA GOVERNMENT COMINCO SAID THE TAX BREAKS AND INCREASED EARNINGS ARE PREREQUISITES FOR A C100 MILLION MODERNIZATION OF THE LEAD SMELTER AT TRAIL THE MODERNIZATION IS NEEDED BY THE END OF 1995 TO MEET PROVINCIAL ENVIRONMENTAL REGULATIONS COMINCO SAID ABOUT 100 OF ITS 6800 WORKERS WILL BE LAID OFF IN JULY AND ANOTHER 100 LATER THIS YEAR COMINCO LAST YEAR HAD LOSSES OF C302 MILLION ON REVENUE OF C147 BILLION MAINLY BECAUSE OF WEAK METAL MARKETS 9305280067 930528 LETTERS TO THE EDITOR WHY THE TAMILS FIGHT LIKE TIGERS YOUR MAY 5 EDITORIAL RACE AND BLOOD FOR THE FIRST TIME RECOGNIZED THE DEPTH OF THE TAMIL PROBLEM IN SRI LANKA THE BUDDHIST MONKS WHO HAVE A STRANGLEHOLD ON THE SINHALA POLITICIANS OF SRI LANKA THINK THAT TAMILS SHOULD BE DISREGARDED AND IGNORED THEIR VISION IS ONE THAT ENCOMPASSES SINHALA ADVANCEMENT AT THE EXPENSE OF EVERYONE ELSE THEIR EXPECTATION IS THAT EVERYONE ELSE MUST LIVE ON SUFFERANCE ON THEIR TERMS THE TAMILS WHO DOMINATE THE NORTHEAST WILL NOT COUNTENANCE THIS ANY LONGER THAT IS WHY THEY ARE WILLING TO ENDURE THE BOMBING THE STARVATION THE HOMELESSNESS MORE THAN HALF THE POPULATION LIVES IN REFUGEE CAMPS AND LACK OF BASIC MEDICAL SUPPLIES INFLICTED ON THEM BY THE GOVERNMENT BEFORE EVER SURRENDERING THAT IS WHY THE LIBERATION TIGERS OF TAMIL EELAM HAVE SUCCESSFULLY RESISTED EVERY EFFORT OF THE GOVERNMENT TO ANNIHILATE THEM THE PEOPLE ARE BEHIND THEM OUR PEOPLE WILL NEVER AGAIN SUBMIT TO THE TYRANNY OF SINHALA RULE OUR PLIGHT IS AS SAD AND AS BAD AS THE CONDITIONS PREVAILING IN BOSNIA WE CRY OUT TO THE WORLD TO RECOGNIZE IT AND INTERVENE 9305280066 930528 WHO'S NEWS APPLE VETERAN PRESCRIBES HARSH CURE AFTER BECOMING NOTEBOOK DOCTOR AT DELL BY KYLE POPE AND DAVID P HAMILTON STAFF REPORTERS OF THE WALL STREET JOURNAL JOHN K MEDICA ONE OF THE MOST SUCCESSFUL NOTEBOOK COMPUTER DESIGNERS IN AMERICA IS GOING BACK TO THE DRAWING BOARD THE 34YEAROLD ENGINEER WHO LED THE TEAM THAT PRODUCED APPLE COMPUTER INC'S ENORMOUSLY POPULAR POWERBOOK MACHINE THIS WEEK FOUND HIMSELF AT THE CENTER OF A NOTEBOOK FIASCO AT DELL COMPUTER CORP WHERE HE WAS RECENTLY NAMED VICE PRESIDENT OF PORTABLE PRODUCTS MR MEDICA WAS IMPORTED BY THE AUSTIN TEXAS MAILORDER COMPANY TO FIX ITS AILING NOTEBOOK LINE WHILE DELL'S DESKTOP PRODUCTS HAVE BEEN BIG HITS IN THE MARKET THE COMPANY HAS LAGGED BEHIND IN WHAT HAS BECOME THE HOTTEST NICHE IN THE PERSONAL COMPUTER MARKET APPARENTLY THE COMPANY STILL HASN'T GOTTEN THE KNACK WITH NOTEBOOKS ACTING ON MR MEDICA'S ADVICE DELL SCRAPPED WORK ON A LONGAWAITED NOTEBOOK LINE THAT HE DECIDED WAS TOO LATE TO MARKET AND TOO CLUNKY TO COMPETE THE MOVE LOWERED DELL'S FISCAL FIRSTQUARTER PRETAX INCOME BY 20 MILLION AND REDUCED PERSHARE EARNINGS BY 35 CENTS SENDING THE COMPANY'S ONCE HIGHFLYING STOCK DOWN 23 ON ZOOMING VOLUME MR MEDICA ON A BUSINESS TRIP IN TOKYO SAID HE FOUND SOON AFTER HE ARRIVED AT DELL IN APRIL THAT THE COMPANY'S NOTEBOOK DESIGN TEAM HAD LOST TOUCH WITH WHAT CUSTOMERS WANTED IN A NEW MACHINE THE PRODUCT DID NOT MAKE SENSE HE SAID IT WAS A COMBINATION OF THE WRONG PRODUCT AT THE WRONG TIME WITHOUT ENOUGH TESTING AND CHARACTERIZATION BEHIND IT WHILE MR MEDICA DECLINED TO TALK ABOUT SPECIFIC PROBLEMS PEOPLE CLOSE TO THE COMPANY SAID DELL'S NEW MACHINES SUFFERED FROM HARDTOREAD DISPLAYS AWKWARD KEYBOARDS AND A BUILTIN TRACK BALL OR MOUSE THAT WAS DIFFICULT TO USE BOBBY R INMAN A DELL BOARD MEMBER SAID THE NEW MACHINES HAD SERIOUS DESIGN PROBLEMS IF YOU BENT BACK THE TOP THREE TIMES YOU COULD END UP CRIMPING THE CABLE MR INMAN SAID THOUGH MR MEDICA SAID THE DECISION TO SHELVE THE PRODUCT WAS TOUGH PARTICULARLY FOR AN EMPLOYEE WHO HAD BEEN AT THE COMPANY FOR LESS THAN TWO MONTHS HE SAID DELL DECIDED TO CUT OUR LOSSES WE POSSIBLY COULD HAVE JUST BEEN CONTINUING OUR SAGA OF DISAPPOINTMENT HE SAID WE'RE STILL TRYING TO FIGURE NOTEBOOKS OUT ANALYSTS SAY MR MEDICA MAY BE THE RIGHT PERSON TO WHIP THE DELL OPERATION BACK INTO SHAPE HE WAS WELLKNOWN FOR HIS DESIGN SKILLS AT APPLE HELPING TO SKETCH OUT THE MOTHERBOARD FOR THE POWERBOOK AND EVENTUALLY OVERSEEING THE TEAM THAT PUT THE MACHINE TOGETHER HIS GREAT STRENGTH IS FOCUSING PROJECTS AND MOTIVATING PEOPLE SAYS RANDY BATTAT VICE PRESIDENT FOR PORTABLE COMPUTING AT APPLE THE QUESTION ANALYSTS SAY IS WHETHER DELL OFFICIALS WILL BE PATIENT ENOUGH TO LET MR MEDICA WORK OUT THE KINKS THE COMPANY AFTER ALL CAN ONLY WATCH AS COMPETITORS LIKE COMPAQ COMPUTER CORP AND AST RESEARCH INC ARE REPORTING BOOMING NOTEBOOK BUSINESS IF MICHAEL DELL HAS HIS WITS ABOUT HIM HE'LL LET MEDICA DO HIS JOB SAID CHARLES R WOLF A TECHNOLOGY ANALYST AT FIRST BOSTON IN NEW YORK THEY'RE MUCH BETTER OFF GETTING IT RIGHT THAN THEY ARE BRINGING OUT PRODUCTS THAT DON'T COMPETE MR MEDICA FOR HIS PART VOWED TO REVAMP THE WAY DELL DESIGNS ITS MACHINES HE SAID HE INTENDS TO INTRODUCE A MORE CONCURRENT DESIGN PROCESS THAT INCORPORATES CUSTOMER INPUT EARLY IN THE PROCESS WE'RE OFF TRYING TO REDEFINE REFINE AND REFOCUS HOW WE'LL BE BRINGING PRODUCTS TO MARKET HE SAID WE WANT MORE EARLIER FEEDBACK FROM CUSTOMERS STAFF REPORTER MICHAEL TOTTY CONTRIBUTED TO THIS REPORT 9305280065 930528 TECHNOLOGY SURPRISE REVIEWS AT 90 MEAT PLANTS FIND INFRACTIONS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SURPRISE INSPECTIONS OF 90 SLAUGHTERHOUSES HAVE TURNED UP NUMEROUS EXAMPLES OF UNSANITARY CONDITIONS INCLUDING CASES OF FECAL CONTAMINATION AND RODENT INFESTATION AGRICULTURE SECRETARY MIKE ESPY SAID THE INSPECTIONS CONDUCTED IN THE WAKE OF LAST WINTER'S TAINTEDHAMBURGER OUTBREAK FOUND 30 CASES WHERE THE PROBLEMS WERE SO SERIOUS THAT THE DEPARTMENT SHUT THE PLANTS DOWN FOR PERIODS RANGING FROM FOUR HOURS TO TWO WEEKS THE DEPARTMENT HAS PLACED 12 OF THE PLANTS UNDER SPECIAL WATCH BECAUSE IT STILL ISN'T SATISFIED WITH THEIR EFFORTS TO RESOLVE THE PROBLEMS OFFICIALS REPORTED NO NEGATIVE FINDINGS IN JUST 26 OF THE PLANTS IN RELEASING THE RESULTS OF THE REVIEW MR ESPY LAID OUT SEVERAL STEPS THAT HE SAID ARE NECESSARY TO MODERNIZE AND REVOLUTIONIZE AN ARCHAIC SYSTEM OF MEAT INSPECTION OFFICIALS SAID THEY COULDN'T SAY HOW THE RESULTS OF THE SURPRISE INSPECTIONS COMPARED WITH THOSE FROM ROUTINE INSPECTIONS THE UNANNOUNCED VISITS WHICH OCCURRED IN MARCH AND APRIL THROUGHOUT THE US FOCUSED ON PLANTS THAT PRODUCE MEAT USED FOR GROUND BEEF FOUR PEOPLE DIED AND MORE THAN 500 PEOPLE BECAME ILL AS A RESULT OF AN OUTBREAK OF E COLI 0157H7 BACTERIA IN SEVERAL WESTERN STATES EARLIER THIS YEAR THE DEPARTMENT SAID IT HAD NARROWED THE SOURCE OF THE CONTAMINATED BEEF TO NINE POSSIBLE FACILITIES BUT PROBABLY WON'T BE ABLE TO TRACE THE POISONINGS TO A SINGLE FARM OR PLANT MR ESPY SAID THE DEPARTMENT PLANS TO REQUIRE THE MEAT AND POULTRY INDUSTRIES TO ADOPT A SYSTEM OF QUALITY CONTROLS THAT FOCUSES ON CRITICAL POINTS WHERE PROBLEMS ARE LIKELY TO OCCUR IN THE PRODUCTION PROCESS THE FOOD AND DRUG ADMINISTRATION IS EXPECTED TO PROPOSE SIMILAR REGULATIONS FOR THE SEAFOOD INDUSTRY THIS SUMMER THE AGRICULTURE SECRETARY ALSO SAID HE WILL EXPAND THE SPECIAL INSPECTION EFFORT SO THAT ALL 6400 MEAT AND POULTRY PLANTS IN THE COUNTRY COULD BE SUBJECT TO SURPRISE CHECKS IN ADDITION HE INTENDS TO ISSUE SPECIFIC CRITERIA FOR QUICK TESTS THE DEPARTMENT WANTS DESIGNED TO DETECT MICROBIOLOGICAL CONTAMINANTS LIKE ECOLI CURRENT TESTS TAKE MORE THAN A DAY TO DETERMINE THE PRESENCE OF SUCH CONTAMINANTS THE SECRETARY ALSO SAID HE WILL ADD A PUBLIC HEALTH ADVISER TO THE DEPARTMENT'S FOOD SAFETY AND INSPECTION SERVICE AND CONSIDER PROPOSING CHANGES IN INSPECTION LAWS HE IS TO RECEIVE PROPOSALS ON NEEDED CHANGES FROM HIS STAFF FOLLOWING A SERIES OF REGIONAL HEARINGS ON MEAT INSPECTION THAT ARE CURRENTLY UNDER WAY THE DEPARTMENT IS EXPECTED TO SEEK ADDITIONAL AUTHORITY TO TRACE ANIMALS FROM PROCESSING PLANTS TO FARMS THE AMERICAN MEAT INSTITUTE CALLED ANNOUNCEMENT OF THE STEPS AN ENCOURAGING VOTE OF SUPPORT FOR SAFE FOOD PROCESSES AND FOR INSPECTION REFORM OFFICIALS HAVE PLACED THE 12 FACILITIES WITH CONTINUING PROBLEMS IN A SPECIAL ENFORCEMENT PROGRAM FOR PLANTS THAT ARE UNABLE OR UNWILLING TO STAY IN COMPLIANCE WITH FEDERAL INSPECTION REGULATIONS IF THEY DON'T SHAPE UP THE FEDERAL GOVERNMENT COULD STOP CONDUCTING INSPECTIONS EFFECTIVELY CLOSING THE PLANTS 9305280064 930528 THE CLINTON TAX PACKAGE HARD SELL IS FINISHED NOW THE POLITICAL BILL IS DUE BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN IN THE END ENOUGH DEMOCRATS FELL IN LINE TO PASS PRESIDENT CLINTON'S ECONOMIC PLAN BOTH THEY AND REPUBLICANS WERE LEFT SMILING DEMOCRATS BECAUSE THEY'D COME THROUGH FOR THE PRESIDENT ON HIS CRUCIAL ECONOMIC INITIATIVE AND REPUBLICANS BECAUSE THEY FORESAW THE CHANCE TO EXPLOIT THE TAX ISSUE IN NEXT YEAR'S ELECTIONS FOR DAYS THE DEMOCRATIC LEADERS HAD TO EMPLOY THE FULL RANGE OF CARROTS AND STICKS TO ACHIEVE THE VICTORY WITH SEVERAL SUBCOMMITTEE CHAIRMEN WAVERING OTHER CHAIRMEN CALLED FOR A PARTY CAUCUS TO DISCIPLINE THOSE WHO DEFECTED PRESUMABLY BY YANKING THEIR CHAIRMANSHIPS IT HAD THE INTENDED EFFECT ANOTHER DEMOCRATIC FENCESITTER REP SOLOMON ORTIZ VOTED YES BUT ONLY AFTER DEMANDING AND GETTING A PHONE CALL FROM MR CLINTON WHO SAID HE'D BE FAIR WHEN A NAVAL BASE IN MR SOLOMON'S TEXAS DISTRICT COMES UP FOR REVIEW BY A BASECLOSING COMMISSION IN 1995 MR CLINTON SPENT THE DAY AS HE'D SPENT MUCH OF THE WEEK CALLING CAPITOL HILL PLEADING FOR SUPPORT AT ONE POINT HE WAS JOINED IN THE OVAL OFFICE BY CHAIRMAN DAN ROSTENKOWSKI D ILL OF THE HOUSE WAYS AND MEANS COMMITTEE NERVES WERE SO FRAYED AT THE WHITE HOUSE THAT OFFICIALS AT ONE POINT WANTED TO PULL BACK THE BILL BUT TREASURY SECRETARY LLOYD BENTSEN ADVISED THEM TO PUT THEMSELVES IN THE HANDS OF THE CONGRESSIONAL LEADERS WHEN THE BILL PASSED THE FORMER SENATOR GOT A ROUND OF APPLAUSE PRESIDENT CLINTON TOLD REPORTERS TONIGHT THE HOUSE SAID NO TO GRIDLOCK NO TO THE STATUS QUO AND NO TO THE SPECIAL INTERESTS WHO WORKED SO VERY HARD TO FRIGHTEN AMERICANS ABOUT HIS ECONOMIC PROGRAM TOMORROW WE GO ON TO THE SENATE AND WE GO ON TO THE COUNTRY TO WIN VOTES FROM MEMBERS OF THE HOUSE'S BLACK CAUCUS HE PROMISED TO STIFFEN SANCTIONS AGAINST HAITI OFFICIALS LATER SAID HE PLANNED TO REVOKE THE US VISAS AND FREEZE THE ASSETS OF HAITIAN OFFICIALS AND THEIR SUPPORTERS WARY OF TURNING DOWN THE ULTIMATE POLITICAL REQUEST SOME LAWMAKERS MADE THEMSELVES SCARCE LATE THIS AFTERNOON I WENT DOWN TO THE GYM AND THERE WERE PEOPLE HIDING THERE FROM THE PRESIDENT OF THE UNITED STATES SAID REP HARRY JOHNSTON D FLA WHO BACKED THE BILL ONE REPUBLICAN WHO OPPOSED THE BILL MARYLAND REP ROSCOE BARTLETT SAID AFTER ITS PASSAGE THE SILVER LINING IS THAT THERE ARE GOING TO BE A GREAT MANY DEMOCRATS WHO DON'T RETURN AFTER 1994 ELECTIONS AFTER A DAY OF DEBATE HOUSE SPEAKER THOMAS FOLEY D WASH HAD THE FINAL WORD CALLING THE PAST 12 YEARS OF REPUBLICAN ECONOMICS A GAMBLE THE COUNTRY LOST HE DECLARED WE HAVE TO NOW TAKE THE DIFFICULT ROAD BACK DEMOCRATIC LEADERS HAD WORKED INTO THE EARLY MORNING HOURS YESTERDAY TO GET THE NECESSARY VOTES AND THEIR ANXIETY WAS PLAIN BUT THEY FINALLY SECURED SUPPORT FROM SOME MODERATE DEMOCRATS BY NEGOTIATING A COMPROMISE VERSION OF THE LAWMAKERS' PROPOSED CAP ON THE FASTGROWING ENTITLEMENT SPENDING AND SOME ENERGYSTATE LAWMAKERS WERE SWAYED BY THE PRESIDENT'S PROMISE THAT THE ENERGY TAX WOULD BE ALTERED IN THE SENATE TO REFUND ITS COST TO MANUFACTURERS WHO EXPORT ENERGYINTENSIVE GOODS IN ORDER TO AVOID UNDERCUTTING THEIR COMPETITIVENESS IN WORLD MARKETS WHILE CHANGE COULD BE CENTRAL TO HOLDING THE VOTE OF ENERGYSTATE SENATORS A LEADING REPUBLICAN SENATOR SEN JOHN DANFORTH SAID THAT THE EXPORTS REBATE AND A RELATED TAX ON ENERGYINTENSIVE IMPORTS SUCH AS METALS PAPER GLASS AND RUBBER WOULD BE ILLEGAL UNDER GLOBAL TRADE AGREEMENTS AND CIRCULATED OPINIONS FROM FORMER BUSH ADMINISTRATION TRADE OFFICIALS THAT SAID AS MUCH A REPRESENTATIVE OF THE EUROPEAN COMMUNITY SENT A SIMILAR WARNING THIS WEEK TO HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO FOR ALL THE CONTROVERSY IN THE HOUSE OVER THE ENERGY TAX AND EFFORTS TO FURTHER CURB SPENDING ON FEDERAL BENEFITS PROGRAMS THE BULK OF MR CLINTON'S PLAN WENT VIRTUALLY UNQUESTIONED THAT INCLUDES HIGHER TAXES ON THE RICHEST AMERICANS TO RAISE MORE THAN 135 BILLION OVER FIVE YEARS EVEN MR CLINTON'S PROPOSAL TO INCREASE THE TAXABLE PORTION OF SOCIAL SECURITY BENEFITS FOR RECIPIENTS WHO AREN'T POOR A 32 BILLION REVENUERAISER THAT REPUBLICANS SINGLED OUT FOR CRITICISM PROVED UNCONTROVERSIAL THE MEASURE ALSO WOULD INCREASE THE CORPORATE TAX RATE TO 35 FROM 34 TO RAISE 164 BILLION OVER FIVE YEARS MR CLINTON HAD SOUGHT 36 BUT AGREED IN THE EARLY HOUSE BARGAINING WITH REP ROSTENKOWSKI TO SHAVE OFF ONE PERCENTAGE POINT IN A SUCCESSFUL BID FOR BIGBUSINESS SUPPORT THE TAX BILL IN FACT INCLUDED MUCH THAT BUSINESS LIKED BIG BUSINESS LOBBYISTS SUCCEEDED IN KNOCKING OUT A PROVISION INCREASING TAXES ON THEIR OVERSEAS ROYALTY INCOME THOSE THAT PAY THE ALTERNATIVE MINIMUM TAX WHICH IS DESIGNED TO MAKE SURE THAT CORPORATIONS WITH A LOT OF DEDUCTIONS OR CREDITS PAY SOME INCOME TAX WOULD WIN SOME RELIEF THAT WOULD COST THE TREASURY NEARLY 9 BILLION OVER FIVE YEARS A LITTLEPUBLICIZED BUT FARREACHING PROVISION WOULD CREATE A UNIFORM 14YEAR WRITEOFF FOR INTANGIBLE ASSETS SUCH AS CUSTOMER LISTS AND TRADEMARKS THAT TYPICALLY ARE PURCHASED IN BUSINESS TAKEOVERS THE PROVISION AIMED AT ENDING COSTLY DISPUTES BETWEEN TAXPAYERS AND THE GOVERNMENT OVER HOW TO DEPRECIATE SUCH ASSETS FOR THE FIRST TIME WOULD ALSO ALLOW BUSINESSES TO WRITE OFF GOODWILL AN ACCOUNTING ENTRY REPRESENTING THE VALUE OF A COMPANY'S REPUTATION HOUSE TAX WRITERS MODIFIED THE ENERGY TAX TO PROVIDE AT LEAST PARTIAL EXEMPTIONS FOR FARMERS THE ALUMINUM INDUSTRY AND HEATING OIL AND SOME LAWMAKERS AGREED TO VOTE FOR THE BILL YESTERDAY ONLY AFTER ASSURANCES FROM MR CLINTON AND CONGRESSIONAL LEADERS THAT THE SENATE WOULD FURTHER SOFTEN THE BLOW ALL TOLD THE DEFICITCUTTING PACKAGE INCLUDES TAX INCREASES OF ABOUT 322 BILLION OVER FIVE YEARS OFFSET BY 75 BILLION IN TAX BREAKS FOR BUSINESSES AND INDIVIDUALS FOR A NET TAX INCREASE OF NEARLY 250 BILLION OVER FIVE YEARS JOHN HARWOOD AND JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE 9305280063 930528 BUSINESS BRIEF MAGMA POWER CO DOW AND JP MORGAN TO SELL SHARES IN SECONDARY OFFERING MAGMA POWER CO SAID IT FILED A REGISTRATION STATEMENT FOR A SECONDARY OFFERING OF 55 MILLION SHARES OF ITS OUTSTANDING COMMON STOCK OWNED BY DOW CHEMICAL CO AND JP MORGAN & CO THE SAN DIEGO OPERATOR OF GEOTHERMAL POWER PLANTS SAID DOW WILL CONTINUE TO OWN 43 MILLION SHARES OR 18 OF ITS STOCK AFTER THE TRANSACTION AS OF MAY 3 DOW HAD OWNED 7810287 OR 34 OF MAGMA'S COMMON SHARES AND HAD OPTIONS TO PURCHASE AN ADDITIONAL TWO MILLION SHARES FOR 21 A SHARE MAGMA SAID DOW BASED IN MIDLAND MICH INTENDS TO SELL JUST UNDER HALF ITS MAGMA HOLDINGS AND SUPPLEMENT THAT AMOUNT WITH THE EXERCISE OF 15 MILLION OPTIONS FOR A TOTAL OF FIVE MILLION SHARES MAGMA WILL RECEIVE 314 MILLION IN NET PROCEEDS FROM THE EXERCISE OF DOW'S OPTIONS JP MORGAN OWNS 975000 OR 4 OF MAGMA'S SHARES AND WILL SELL 500000 IN THE PLANNED TRANSACTION NEW YORKBASED JP MORGAN WILL RETAIN 475000 SHARES OR ABOUT 2 OF MAGMA COMMON STOCK ON NEWS OF THE SALE MAGMA STOCK WAS DOWN 1375 TO 3450 IN NATIONAL OVERTHECOUNTER TRADING 9305280062 930528 YOUR MONEY MATTERS WEEKEND REPORT WHEN CRISIS STRIKES CARING FOR AN ELDERLY PARENT BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL IT'S THE PHONE CALL EVERYONE DREADS AN ELDERLY PARENT PERHAPS RETIRED AND LIVING THOUSANDS OF MILES AWAY IS SERIOUSLY ILL AND NEEDS YOUR HELP THE DETAILS NOT JUST MEDICAL BUT ALSO FINANCIAL AND LEGAL CAN SEEM OVERWHELMING BUT IT'S SOMETHING MORE AND MORE PEOPLE ARE GOING TO FACE IN THE YEARS TO COME THE POPULATION AGED 75 AND OLDER THOSE MOST LIKELY TO NEED CARE IS EXPECTED TO GROW BY 25 IN THE NEXT DECADE TO ABOUT 17 MILLION INDIVIDUALS WE'RE BEING FORCED TO BECOME KNOWLEDGEABLE ABOUT THINGS WE'D RATHER NOT BE KNOWLEDGEABLE ABOUT SAYS NINA MAZZO OF OLDER ADULTS CARE MANAGEMENT INC A HOMECARE PROVIDER AND CARE MANAGER IN PALO ALTO CALIF YEARS AGO ADULT CHILDREN OFTEN TOOK ELDERLY PARENTS INTO THEIR HOMES BUT THAT ISN'T ALWAYS POSSIBLE THESE DAYS CHILDREN OFTEN LIVE MILES AWAY AND MANY MORE WOMEN WHO USED TO BE THE CAREGIVERS ARE IN THE WORKPLACE BABY BOOMERS ARE GOING TO HAVE TO DEAL WITH THIS SAYS RONA BARTELSTONE A SOCIAL WORKER IN FORT LAUDERDALE FLA MOST PEOPLE HOWEVER AREN'T PREPARED FOR THAT RESPONSIBILITY PROFESSIONALS WHO WORK WITH THE ELDERLY SAY THAT FEW OF THEM MAKE PLANS FOR HOW THEY WOULD DEAL WITH A SERIOUS ILLNESS OR DISABILITY MEANWHILE THEIR ADULT CHILDREN OFTEN ARE RELUCTANT TO BRING IT UP PEOPLE DO WILLS TO PLAN FOR WHAT HAPPENS WHEN THEY DIE THE ISSUE IS WHAT HAPPENS IF YOU DON'T DIE SAYS MICHAEL LONG A NEW YORK ATTORNEY SPECIALIZING IN ISSUES INVOLVING THE ELDERLY BUT WHILE IT MAY BE HARDER TO COPE WITH A CRISIS AFTER THE FACT IT'S NOT IMPOSSIBLE COUNTY AND LOCAL GOVERNMENT AGENCIES SUPPORT GROUPS EDUCATIONAL ASSOCIATIONS AS WELL AS HEALTHCARE AND OTHER PROFESSIONALS ARE AMONG THOSE WHO CAN PROVIDE ASSISTANCE EVEN FOR THOSE WHOSE PARENTS ARE MILES AWAY AND WHILE SOME THINGS CAN BE QUITE EXPENSIVE FULLTIME CARE AT HOME CAN EASILY COME TO 10000 OR MORE FOR JUST A FEW MONTHS FOR INSTANCE OTHER SERVICES ARE AVAILABLE AT LITTLE OR NO COST AND SOME THINGS MAY BE COVERED BY INSURANCE THE FIRST STEP PROFESSIONALS SAY IS TO FIND OUT WHAT'S AVAILABLE IN YOUR PARENT'S COMMUNITY PEOPLE OFTEN THINK A NURSING HOME IS THE ONLY ALTERNATIVE SAYS JEAN M GRUN EXECUTIVE DIRECTOR OF CHILDREN OF AGING PARENTS AN INFORMATION AND REFERRAL ORGANIZATION IN LEVITTOWN PA SHE NOTES THAT HOME CARE ADULT DAY CARE OR JUST HOUSEKEEPING SERVICES AND HOME DELIVERY OF MEALS MAY BE ENOUGH IN MANY CASES IF MOM OR DAD IS IN THE HOSPITAL A SOCIAL WORKER OR DISCHARGE PLANNER CAN HELP IDENTIFY RESOURCES IF YOU'RE GOING IT ALONE LOCAL SENIOR CENTERS MAY HAVE INFORMATION COUNTY OR LOCAL DEPARTMENTS FOR THE AGING OR LOCAL CHAPTERS OF ORGANIZATIONS LIKE THE ALZHEIMER'S ASSOCIATION OFTEN CAN PROVIDE REFERRALS FOR VARIOUS SERVICES THE INFORMATION IS USUALLY FREE THE COST OF SERVICES DEPENDS ON WHAT'S NEEDED GEOGRAPHIC LOCATION AND WHETHER THE PATIENT IS ELIGIBLE FOR GOVERNMENT ASSISTANCE OR HAS PRIVATE INSURANCE FOR INSTANCE ADULT DAY CARE WHICH MAY INCLUDE SOCIAL ACTIVITIES SUPERVISED PROGRAMS FOR ALZHEIMER'S PATIENTS MEALS AND EVEN BATHING CAN RANGE FROM JUST A FEW DOLLARS A DAY FOR SUBSIDIZED PROGRAMS TO 12 AN HOUR FOR PRIVATELY RUN FACILITIES IT MAY BE COVERED BY PRIVATE LONGTERM CARE INSURANCE OR BY MEDICAID THE JOINT STATE AND FEDERAL PROGRAM THAT PROVIDES HEALTH CARE FOR THE POOR MANY SENIOR CENTERS OFFER HOT MEALS AT MINIMUM COST PROGRAMS SUCH AS MEALS ON WHEELS TYPICALLY FUNDED BY LOCAL GOVERNMENT AGENCIES AND PRIVATE CONTRIBUTIONS DELIVER HOT MEALS TO THE HOMEBOUND ELDERLY THERE ALSO ARE RESIDENTIAL FACILITIES WHERE THE ELDERLY LIVE INDEPENDENTLY BUT HAVE ACCESS TO MEALS AND MEDICAL CARE WHEN NEEDED FOR ADULT CHILDREN WHO CAN'T TAKE THE TIME OFF FROM WORK TO MAKE ARRANGEMENTS OR WHO AREN'T ABLE TO BE WITH THEIR PARENTS TO SUPERVISE CARE THERE'S SOMEONE ELSE WHO WILL DO IT FOR A FEE PRIVATE GERIATRIC CARE MANAGERS WHO ARE OFTEN SOCIAL WORKERS OR NURSES CAN DO EVERYTHING FROM ARRANGING FOR HOME REPAIRS OR FOR MEALS TO BE DELIVERED TO HIRING SOMEONE TO CARE FOR MOM OR DAD AT HOME OR FINDING A NURSING HOME THEY ALSO MAY PROVIDE COUNSELING FOR PATIENTS AND FAMILY MEMBERS THESE PEOPLE CAN BE MAGICAL SAYS MICHAEL GILFIX A PALO ALTO CALIF ATTORNEY SPECIALIZING IN MATTERS INVOLVING THE ELDERLY THEY KNOW WHAT TO DO AND THEY CAN ELIMINATE SO MUCH WORRY AND GUILT THE FEE IS USUALLY 350 TO 400 FOR AN INITIAL ASSESSMENT WHICH INCLUDES A VISIT WITH THE PATIENT AND AN ASSESSMENT OF THE PHYSICAL ENVIRONMENT AND MEDICAL AND EMOTIONAL NEEDS ADDITIONAL SERVICES TYPICALLY RANGE FROM 20 TO 150 AN HOUR DEPENDING ON WHETHER IT'S FOR DOMESTIC HELP OR A COMPLEX PSYCHOLOGICAL ASSESSMENT IN MANY CASES THE BIGGEST EXPENSE IS A NURSING HOME OR CARE AT HOME NURSING HOMES AVERAGE 30000 A YEAR NATIONWIDE BUT CAN COST TWICE THAT OR MORE IN MANY URBAN AREAS FULLTIME HOME CARE CAN BE JUST AS EXPENSIVE MEDICARE THE FEDERALLY FUNDED HEALTHCARE PROGRAM FOR THE ELDERLY AND MOST SUPPLEMENTAL INSURANCE GENERALLY COVERS SKILLED NURSING CARE OR THERAPY AFTER A HOSPITAL STAY OR AN ACUTE ILLNESS TALK TO YOUR PARENT'S PHYSICIAN SOMETIMES CARE HAS TO BE ORDERED BY A DOCTOR FOR IT TO BE COVERED LONGTERM CUSTODIAL OR PERSONAL CARE FOR PATIENTS WITH CHRONIC CONDITIONS SUCH AS ALZHEIMER'S DISEASE USUALLY ISN'T COVERED BY MEDICARE BUT IT MAY BE COVERED BY PRIVATE INSURANCE OR BY MEDICAID FOR THOSE MEETING INCOME AND ASSET LIMITATIONS MOST PEOPLE PAY FOR IT THEMSELVES IT MAY BE NECESSARY TO GET LEGAL ADVICE EITHER TO QUALIFY FOR MEDICAID TO REVIEW A WILL OR TO BE SURE THAT AILING PARENTS ARE CARED FOR ACCORDING TO THEIR WISHES IF SOMEONE BECOMES ILL WHO HASN'T YET SIGNED A DURABLE POWER OF ATTORNEY AND HEALTHCARE PROXY AND IS STILL MENTALLY COMPETENT TO DO SO PROFESSIONALS SAY THESE DOCUMENTS SHOULD BE SIGNED AT ONCE A DURABLE POWER OF ATTORNEY AUTHORIZES A THIRD PARTY TO MANAGE THE AFFAIRS OF SOMEONE WHO CAN NO LONGER DO SO AND A HEALTHCARE PROXY AUTHORIZES A THIRD PARTY TO MAKE HEALTHCARE DECISIONS FOR SOMEONE WHO CAN'T ALTHOUGH SOME ELDERLY FOLKS MAY HAVE A JOINT BANK ACCOUNT WITH AN ADULT CHILD THE EXPERTS SAY THAT ISN'T ENOUGH AND ALSO ISN'T NECESSARY IF A DURABLE POWER OF ATTORNEY HAS BEEN SIGNED WITH A JOINT CHECKING ACCOUNT YOU CAN PAY THE RENT OR THE MORTGAGE BUT NOT MUCH ELSE SAYS DEENA KATZ A CORAL GABLES FLA FINANCIAL PLANNER SHE NOTES THAT IT COULD BE NECESSARY TO SELL OR TRANSFER ASSETS TO PAY FOR CARE OR TO MAKE OTHER FINANCIAL TRANSACTIONS WHICH COULD BE DONE WITH A DURABLE POWER OF ATTORNEY AND THERE ARE REASONS TO AVOID JOINT OWNERSHIP OF ASSETS SAYS MS KATZ THE KIDS CAN GET IN TROUBLE AND WIPE OUT EVERYTHING SHE SAYS A DURABLE POWER OF ATTORNEY IS THERE WHEN YOU NEED IT BUT DOESN'T GIVE INSTANT ACCESS TO THE MONEY IT HELPS TO HAVE PLANNED AHEAD IT USUALLY COSTS A FEW HUNDRED DOLLARS AT MOST FOR A LAWYER TO DRAFT A POWER OF ATTORNEY AND HEALTHCARE PROXY IT CAN COST A FEW THOUSAND DOLLARS IF IT'S NECESSARY TO GO TO COURT TO APPOINT A GUARDIAN OR CONSERVATOR FOR SOMEONE WHO IS INCOMPETENT PEOPLE SPEND A FORTUNE ON HEALTH INSURANCE LIFE INSURANCE EVEN CAR INSURANCE SAYS MR GILFIX THE PALO ALTO ATTORNEY LEGAL INSURANCE' COSTS PENNIES IN COMPARISON 9305280061 930528 SEN NUNN REJECTS PROPOSAL TO LET GAYS JOIN MILITARY WASHINGTON SEN SAM NUNN CHAIRMAN OF THE SENATE ARMED SERVICES COMMITTEE REJECTED A COMPROMISE PROPOSAL BY REP BARNEY FRANK TO ALLOW HOMOSEXUALS IN THE ARMED FORCES SAYING IT WOULD SET A VERY UNDESIRABLE PRECEDENT IN MILITARY LAW SEN NUNN A LEADING OPPONENT OF PRESIDENT CLINTON'S PLAN TO ALLOW GAYS IN THE MILITARY CALLED REP FRANK'S PROPOSAL A COMPROMISE NOT BETWEEN THE PRESENT POLICY AND PRESIDENT CLINTON'S APPROACH BUT BETWEEN THE PRESIDENT'S APPROACH AND A TOTAL LIFTING OF RESTRICTIONS AGAINST HOMOSEXUALS THE PLAN BY THE MASSACHUSETTS DEMOCRAT WHO IS OPENLY HOMOSEXUAL WOULD END THE PRACTICE OF ASKING RECRUITS ABOUT THEIR SEXUAL ORIENTATION IT ALSO WOULD PROHIBIT HOMOSEXUAL ACTIVITY WHILE PERSONNEL ARE ON BASE AND ON DUTY BUT WOULDN'T BAN HOMOSEXUAL ACTIVITY OFFBASE AND OFFDUTY THE PROPOSAL WON SUPPORT FROM PRESIDENT CLINTON WHO SAID THAT WHILE FINAL DECISIONS HAVEN'T BEEN MADE I THINK WE'RE VERY CLOSE TO A COMPROMISE ALONG THOSE LINES BUT IN A SPEECH ON THE SENATE FLOOR LAST NIGHT SEN NUNN SAID THE ONBASE OFFBASE DISTINCTION IS INCONSISTENT WITH THE CODE OF MILITARY CONDUCT WHICH COMPLETELY REGULATES A PERSON'S LIFE AT ALL TIMES 9305280060 930528 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE US AND THE EUROPEAN COMMUNITY RENEWED A SKIRMISH OVER TRADE IN TELECOMMUNICATIONS EQUIPMENT AND STEEL THE US BARRED ECBASED COMPANIES FROM BIDDING FOR CERTAIN US GOVERNMENT CONTRACTS EFFECTIVE TODAY THE MOVE WAS AN EFFORT TO SEEK REPEAL OF EC RULES THAT FAVOR EUROPEAN FIRMS IN BIDDING FOR TELECOMEQUIPMENT CONTRACTS BUT THE SANCTIONS COVER JUST 20 MILLION IN ANNUAL CONTRACTS A TINY FRACTION OF TRANSATLANTIC TRADE THE EC COMMISSION DENOUNCED THE SANCTIONS BUT DIDN'T THREATEN RETALIATION WHILE MEMBER STATES CONSIDER A RESPONSE THE EC MEANWHILE ASKED THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO RULE ON THE LEGALITY OF DUTIES THE US IMPOSED ON CERTAIN EC STEEL EXPORTS IN A DISPUTE ABOUT SUBSIDIES THE COUNTERVAILING DUTIES COVER ABOUT 19 MILLION OF EC SHIPMENTS THE EC SAID THE TELECOMMUNICATIONS SPAT SHOULDN'T BE ALLOWED TO DERAIL GATT TALKS ON A NEW ACCORD TO REMOVE BARRIERS TO WORLD TRADE THE US AND THE EC HOPE TO CONCLUDE THE SIXYEAROLD TALKS THIS YEAR FRANCE WON KEY CONCESSIONS IN TALKS ON EUROPEAN COMMUNITY FARM PRICE SUPPORTS THAT MAY HELP IT ACCEPT AN ECUS DEAL ON OILSEED SUBSIDIES AN ISSUE BLOCKING PROGRESS IN WORLD TRADE NEGOTIATIONS EC AGRICULTURE MINISTERS AGREED ON FARM PRICES FOR THE COMING 12 MONTHS WITH FRANCE WINNING A SUBSTANTIAL INCREASE IN COMPENSATION FOR FARMERS WHO SET ASIDE LAND AS WELL AS BETTER TERMS FOR DAIRY DURUMWHEAT AND SUGARBEET FARMERS AND MUTTON PRODUCERS EC FOREIGN MINISTERS COULD ADOPT THE OILSEEDS PACT JUNE 8 FRANKFURT PROSECUTOR'S OFFICE BEGAN AN INVESTIGATION OF POSSIBLE TAX EVASION BY FRANZ STEINKUEHLER THE FORMER PRESIDENT OF GERMANY'S METAL WORKERS UNION HE RESIGNED TUESDAY AS LEADER OF IG METALL THE COUNTRY'S BIGGEST LABOR GROUP FOLLOWING ALLEGATIONS OF INSIDER TRADING IN SHARES OF TWO COMPANIES LINKED TO THE INDUSTRIAL GIANT DAIMLERBENZ AG MR STEINKUEHLER ALSO LEFT DAIMLER'S SUPERVISORY BOARD AFTER 20 YEARS AS A MEMBER AS INSIDER TRADING ISN'T ILLEGAL IN GERMANY PROSECUTORS HAVE USUALLY FOCUSED ON TAX ASPECTS OF SUCH ACTIVITY BRITAIN AND CHINA WILL RESUME TALKS NEXT FRIDAY ON FINANCING HONG KONG'S NEW AIRPORT THE DEADLOCK WAS BROKEN ON THE EVE OF THE FOURTH ROUND OF NEGOTIATIONS TODAY ON THE DIVISIVE ISSUE OF THE BRITISH COLONY'S POLITICAL FUTURE THE MOVE FURTHER RELAXED TENSIONS THAT HAD BUILT UP SINCE THE POLITICAL ROW BEGAN IN OCTOBER SINCE THEN TALKS ON HOW TO FUND AIRPORT COSTS OF 164 BILLION HONG KONG DOLLARS US2122 BILLION HAVE BEEN IN LIMBO BECAUSE OF CHINA'S OBJECTIONS RELATED TO ITS LIABILITY AFTER ITS TAKEOVER OF HONG KONG IN 1997 EUROPEAN COMMUNITY RESTRICTIONS ON LATIN AMERICAN BANANA IMPORTS ARE UNFAIR AND VIOLATE WORLD TRADE RULES AN ARBITRATION PANEL DECIDED THE GENERAL AGREEMENT ON TARIFFS AND TRADE PANEL ALSO RULED THAT PREFERENTIAL ARRANGEMENTS FOR EC STATES' FORMER COLONIES WERE UNJUSTIFIED A TRADE SOURCE SAID SOME EC COUNTRIES HAVE MIXES OF QUOTAS AND PREFERENTIAL DEALS TO PROTECT DOMESTIC AND FOREIGN PRODUCERS GATT ACTED ON A COMPLAINT BY LATIN COUNTRIES THAT THE CURBS DISCRIMINATED AGAINST THEIR PRODUCTS THE DECISION RAISES QUESTIONS ABOUT THE LEGALITY OF EVEN TIGHTER EC CONTROLS TO TAKE EFFECT JULY 1 THE BLACK COMEDY THEATER COMPANY IN BELGIUM PROTESTING A NEW LAW REQUIRING DRAMA TROUPES TO HAVE A DIRECTOR NOMINATED ITS DOG TO THE POST THE GROUP SAID BORIS 8 YEARS OLD IS IDEAL FOR THE JOB AS HE NAPS DURING SHOWS JUST AS HUMAN DIRECTORS DO YET HE CAN SIT UPRIGHT BERT VERHOYE A SCRIPTWRITER SAID HE CAN ALSO BARK AT THE STAFF AND CHASE AWAY JOB APPLICANTS WHO ANNOY US BLACK COMEDY AFTER 17 YEARS WITHOUT A DIRECTOR PREFERS TO SPEND ITS MONEY ON PERFORMERS CHINA REJECTED THE INTERNATIONAL MONETARY FUND'S RECENT ASSESSMENT THAT THE CHINESE ECONOMY IS THE WORLD'S THIRD LARGEST AFTER THE US AND JAPAN THE NEW IMF ASSESSMENT WAS BASED ON INTERNATIONAL DIFFERENCES IN PURCHASING POWER THE CONVENTIONAL APPROACH IS TO USE THE OFFICIAL EXCHANGE RATE TO CONVERT CHINA'S 1992 GROSS DOMESTIC PRODUCT OF 24 TRILLION YUAN OR 41965 BILLION BUT MANY ECONOMISTS BELIEVE EXCHANGERATE COMPARISONS ARE MISLEADING BECAUSE THEY IGNORE THE DIFFERING PURCHASING POWER OF CURRENCIES FOR EXAMPLE SERVICE SECTORS IN DEVELOPING COUNTRIES ARE GENERALLY UNDERESTIMATED USING THE PURCHASINGPOWER PARITY APPROACH THE IMF ESTIMATED CHINA'S ECONOMY AT 2 TRILLION BEIJING DISPUTED THIS METHOD SAYING CHINA'S PER CAPITA GDP AND LIVING STANDARDS WON'T CATCH UP TO THOSE IN DEVELOPED COUNTRIES FOR DECADES THE NEW IMF CALCULATION COULD UNDERMINE CHINA'S CLAIM TO DEVELOPINGCOUNTRY STATUS AND LOWINTEREST LOANS FROM INTERNATIONAL LENDING INSTITUTIONS ECUADOR'S NATIONWIDE STRIKE TO PROTEST SELLOFFS OF STATE ENTERPRISES AND HIGHER UTILITY RATES WEAKENED IN ITS SECOND DAY AS TRANSPORTATION AND BUSINESS RETURNED TO NORMAL AND THE GOVERNMENT REFUSED TO MEET DEMANDS TO OUST THE FINANCE AND LABOR MINISTERS MALAYSIA EXCEEDED ITS 1992 TARGET OF ATTRACTING 125 BILLION MALAYSIAN DOLLARS US488 BILLION IN FOREIGN INVESTMENT WHICH TOTALED M137 BILLION 9305280059 930528 HOLIDAY NOTICE THE WALL STREET JOURNAL WILL NOT BE PUBLISHED MONDAY IN OBSERVANCE OF MEMORIAL DAY 9305280058 930528 BUSINESS BRIEF NEW ENGLAND ELECTRIC SYSTEM WASTE SITE CLEANUP LIABILITY IS UPHELD IN APPEALS COURT NEW ENGLAND ELECTRIC SYSTEM SAID A US APPEALS COURT AFFIRMED A LOWER COURT'S DECISION HOLDING THE WESTBOROUGH MASS COMPANY LIABLE FOR THE CLEANUP OF MANUFACTUREDGAS WASTE AT A SITE IT ONCE OWNED NEW ENGLAND ELECTRIC SAID IT HASN'T DETERMINED HOW MUCH THE CLEANUP OF THE LYNN MASS SITE WOULD COST BUT IT ESTIMATED THE COSTS OF CLEANING SIMILAR MANUFACTUREDGAS SITES INDUSTRYWIDE AT ANYWHERE BETWEEN 300000 AND 15 MILLION NEW ENGLAND ELECTRIC MADE OR STORED GAS AT 35 OTHER SITES AND IS ASSESSING POTENTIAL CLEANUP COSTS AT THESE LOCATIONS THE COMPANY SAID IT DIDN'T EXPECT TOTAL CLEANUP LIABILITY TO BE MATERIAL TO ITS FINANCIAL POSITIONMEANING NOT MORE THAN 150 MILLION OR ABOUT 10 OF THE COMPANY'S COMMON EQUITY THE COMPANY SAID IT WOULD TRY TO RECOVER CLEANUP EXPENSES THROUGH RATE RISES THE APPEALSCOURT DECISION ALSO RENDERED IN BOSTON COULD PAVE THE WAY FOR ADDITIONAL LAWSUITS A LAWSUIT RELATED TO ONE OTHER SITE HAS BEEN FILED AND IS PENDING IN FEDERAL COURT 9305280057 930528 INTERNATIONAL BCCI CREDITORS DESCEND ON STADIUM BOOING THE BANK LIQUIDATOR'S EFFORTS BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL LONDON CALL IT THE FIRST GENERAL MEETING OF BCCI LIQUIDATION INC ABOUT 1000 CREDITORS OF THE FAILED BANK OF CREDIT & COMMERCE INTERNATIONAL GATHERED YESTERDAY IN WEMBLEY ARENA A FORUM MORE ACCUSTOMED TO ROCK CONCERTS TO HEAR THAT RECOVERY OF LOSSES IN THE 124 BILLION FIASCO COULD REACH 40 CENTS ON THE DOLLAR OR MORE IF THERE IS A FAVORABLE OUTCOME IN CERTAIN LITIGATION BUT THEY ALSO LEARNED THAT RECOVERY ISN'T CHEAP IN FACT LIQUIDATION AND RECOVERY COSTS IN THE FIRST YEAR AFTER THE JULY 1991 COLLAPSE TOTALED 195 MILLION AND COSTS CONTINUE TO PILE UP AT ABOUT 25 MILLION A MONTH THIS MAKES THE AMBITIOUS RECOVERY EFFORT OVERSEEN BY TOUCHE ROSS & CO BCCI'S COURTAPPOINTED LIQUIDATORS A VAST FINANCIAL ENTERPRISE OF ITS OWN THIS IN TURN MAKES MANY OF BCCI'S THOUSANDS OF CREDITORS MOST OF WHOM HAVE YET TO SEE A CENT OF THEIR MONEY SERIOUSLY UNHAPPY CHRISTOPHER MORRIS TOUCHE ROSS'S CHIEF LIQUIDATOR GOT AN EARFUL YESTERDAY AS DOZENS OF CREDITORS TOOK TO MICROPHONES OSTENSIBLY TO ASK QUESTIONS REGARDING THE RECOVERY EFFORT BUT MANY USED THE OCCASION PERHAPS ONE OF THE LARGEST CREDITOR MEETINGS IN HISTORY TO MAKE SPEECHES DEMANDING QUICK MONEY AND TO COMPLAIN ABOUT LIQUIDATION COSTS THE LATTER COMPLAINTS WERE IRONIC GIVEN THAT THE MEETING INVOLVING MAILINGS TO TENS OF THOUSANDS OF CREDITORS AND DEPOSITORS AROUND THE GLOBE COST A REPORTED 12 MILLION TO STAGE ONE QUESTIONER BRUSQUELY REMINDING THE AUDITORS OF THE HUGE FEES THEY ARE COLLECTING ASKED WHEN CAN WE CREDITORS EXPECT TO SEE A PAYMENT HE THEN WENT ON TO RAIL AGAINST A PROPOSED COMPROMISE BY LIQUIDATORS THAT WOULD ALLOW BCCI'S MAJORITY SHAREHOLDERS NOTABLY PRINCIPALS IN THE GOVERNMENT OF ABU DHABI TO PAY AN ESTIMATED 12 BILLION TO 22 BILLION IN REPARATIONS TO CREDITORS IN EXCHANGE FOR BEING RELEASED FROM FURTHER LIABILITY HE CALLED THE PROPOSAL WHICH IS BEING CONTESTED IN COURT BY A GROUP OF CREDITORS IN LUXEMBOURG TANTAMOUNT TO AN EXONERATION OF ABU DHABI OFFICIALS WHOM HE ACCUSED OF MISUSING BCCI ASSETS FOR THEIR OWN GAIN THE SPEAKER ALSO CRITICIZED AS BELATED A DECISION BY TOUCHE ROSS THIS WEEK TO SUE THE BANK OF ENGLAND TO RECOVER BILLIONS MORE ON BEHALF OF CREDITORS ON THE GROUNDS THAT BRITAIN'S CENTRAL BANK FAILED TO ADEQUATELY REGULATE THE ROGUE BCCI BANK IS THIS THE TIMING OF THE SUIT A QUESTION OF NEGLIGENCE OR INEFFICIENCY THE SPEAKER SAID TO ROBUST APPLAUSE MR MORRIS DEFENDED THE PROPOSED DEAL WITH THE ABU DHABI SHAREHOLDERS SAYING IT OFFERS THE BEST CHANCE OF GETTING SUBSTANTIAL FUNDS TO CREDITORS QUICKLY THE ALTERNATIVE LITIGATION IS A GAMBLE WHOSE OUTCOME COULD WELL NOT BE DECIDED UNTIL SOMETIME IN THE NEXT CENTURY HE SAID IT CAN'T BE CALLED EXONERATION MR MORRIS ADDED NOTING THAT FARFLUNG CRIMINAL INVESTIGATIONS INTO THE BCCI COLLAPSE ARE SEPARATE FROM THE LIQUIDATORS' ROLE TO RECOVER FUNDS FOR CREDITORS AS FOR THE TIMING OF THE BANK OF ENGLAND SUIT MR MORRIS SAID THE LIQUIDATORS HAVE ACTED AS EXPEDITIOUSLY AS POSSIBLE MR MORRIS IN AN ACCOUNTING EARLIER IN THE MEETING SAID THAT ONLY ABOUT 11 OF BCCI'S ESTIMATED 124 BILLION IN MISSING WORLDWIDE ASSETS IS LIKELY TO BE RECOVERED TO DATE 6478 MILLION HAS BEEN SEIZED WITH AN ADDITIONAL 425 MILLION IDENTIFIED BUT NOT YET COLLECTED 9305280056 930528 WHO'S NEWS MAXUM HEALTH HIRES TURNAROUND AIDES 2 EXECUTIVES RESIGN DALLAS MAXUM HEALTH CORP IN A CONTINUING EFFORT TO RECOVER FROM PROBLEMS IN ITS CORE MOBILE IMAGING BUSINESS SAID ITS PRESIDENT AND CHIEF OPERATING OFFICER HAVE RESIGNED AND WERE SUCCEEDED BY CORPORATE TURNAROUND SPECIALISTS THE COMPANY SAID IT HIRED DOUGLAS DRUMWRIGHT AND CHARLES MACK PRINCIPALS OF ALPHA PARTNERS A SANTA ANA CALIF MANAGEMENT CONSULTING FIRM WILLIAM L MACKNIGHT 41 YEARS OLD FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER AND NANCY J CORDAY 45 CHIEF OPERATING OFFICER RESIGNED TO PURSUE OTHER INTERESTS A COMPANY SPOKESMAN SAID IN APRIL MR MACKNIGHT WAS SUCCEEDED AS CHAIRMAN BY GAINES W HAMMOND A DIRECTOR MS CORDAY WAS PROMOTED FROM SENIOR VICE PRESIDENT IN MARCH WHEN THE COMPANY FIRST TRIED TO ADDRESS THE LOSS OF BUSINESS IN ITS MOBILE MAGNETIC RESONANCE IMAGING UNITS THE UNITS ACCOUNTED FOR ABOUT 80 OF MAXUM'S 45 MILLION IN 1992 REVENUE THE COMPANY IS TRYING TO RENEGOTIATE TERMS OF ITS EQUIPMENT LEASES AFTER CREDITORS BARRED IT FROM FURTHER BORROWING UNDER ITS 55 MILLION CREDIT LINE SAID GLENN P CATO THE COMPANY'S CHIEF FINANCIAL OFFICER MR CATO SAID MAXUM IS SEEKING TO SHRINK ITS OPERATIONS AND IS ASKING LESSORS TO CANCEL SOME EQUIPMENT LEASES HE SAID TALKS ARE CONTINUING BUT THE OUTCOME REMAINS UNCERTAIN 9305280055 930528 BUSINESS BRIEFS ALLIEDSIGNAL INC RECEIVED A PATENT FOR A COMMERCIAL REFRIGERANT THAT ACTS AS A SUBSTITUTE FOR THOSE MADE FROM CHLOROFLUOROCARBONS GAYLORD ENTERTAINMENT CORP WILL SPEND 175 MILLION TO EXPAND THE OPRYLAND HOTEL IN NASHVILLE TENN NOVELL INC AGREED TO ACQUIRE SERIUS CORP FOR 173 MILLION AND EXPECTS TO COMPLETE THE ACQUISITION BY THE END OF JULY KEY TRONIC CORP SIGNED AN AGREEMENT TO ACQUIRE HONEYWELL INC'S KEYBOARD DIVISION FOR CASH A NOTE AND KEY TRONIC SHARES VALUED AT A TOTAL OF 33 MILLION DEVELOPERS DIVERSIFIED REALTY CORP COMPLETED THE PURCHASE OF A SHOPPING CENTER IN CINCINNATI FOR ABOUT 134 MILLION FROM CITY & SUBURBAN CO AN AFFILIATE OF SOCIETY CORP'S SOCIETY NATIONAL BANK UNIT NATIONAL REHABILITATION CENTERS INC'S SHAREHOLDERS APPROVED CHANGING THE COMPANY'S NAME TO REHABILITY CORP 9305280053 930528 JAPAN BANKS SAY SLIDE CONTINUES IN NET PROFITS THEIR FIRST PUBLIC DISCLOSURE ON BADDEBT EXPOSURE REVERSES EARLIER SECRECY BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S 11 MAJOR COMMERCIAL BANKS STAGGERING UNDER THE WEIGHT OF THEIR BAD LOANS SAID UNCONSOLIDATED NET PROFITS SHRANK 43 IN THE YEAR ENDED MARCH 31 THE FOURTH CONSECUTIVE YEAR OF FALLING PROFITS MOST OF THE BANKS ARE BRACING FOR FURTHER DECLINES IN THE CURRENT YEAR FOR THE FIRST TIME THE 11 BANKS ALSO KNOWN AS CITY BANKS PUBLICLY DISCLOSED INFORMATION ABOUT THEIR NONPERFORMING LOANS THE GIANT LENDERS WHICH STILL DOMINATE THE RANKS OF THE WORLD'S LARGEST FINANCIAL INSTITUTIONS ACKNOWLEDGED 843 TRILLION YEN 7773 BILLION IN LOANS ON WHICH NO INTEREST HAS BEEN PAID FOR SIX MONTHS OR MORE THE BANKS SAID LOANS TO BORROWERS NOW IN BANKRUPTCY ACCOUNTED FOR 138 TRILLION YEN OR ABOUT A FIFTH OF TOTAL NONPERFORMING LOANS FINANCIAL ANALYSTS LONG FRUSTRATED BY JAPANESE BANKS' SECRETIVE ACCOUNTING PRACTICES SAID THEY WERE ENCOURAGED THAT THE LENDERS HAVE FINALLY AIRED A BIT OF DIRTY LAUNDRY HOWEVER ANALYSTS SAID THE REPORTED FIGURES STILL VASTLY UNDERSTATE THE TRUE EXTENT OF BADDEBT EXPOSURE SOME OF THESE NUMBERS ARE PRETTY HARD TO SWALLOW SAID ALICIA OGAWA A FINANCIAL ANALYST AT SALOMON BROTHERS ASIA LTD UNDER DISCLOSURE GUIDELINES WORKED OUT BY JAPAN'S BANK FEDERATION AND THE MINISTRY OF FINANCE INDIVIDUAL BANKS WEREN'T REQUIRED TO REPORT LOANS AS NONPERFORMING IF THE BANKS HAD GRANTED FINANCIAL SUPPORT TO THE BORROWER AND WERE WORKING TO RESTRUCTURE THE DEBT SOME ANALYSTS BELIEVE THE VALUE OF LOANS IN RESTRUCTURING EXCEEDS THE LATEST BADDEBT TOTAL MS OGAWA ESTIMATES TOTAL DOUBTFUL LOANS HELD BY ALL JAPANESE BANKS IE LOANS ON WHICH BORROWERS ARE NO LONGER ABLE TO MAKE REGULAR INTEREST PAYMENTS COULD BE AS HIGH AS 45 TRILLION YEN THE BANKS' FINANCIAL STATEMENTS DID CONTAIN SOME CHEERY NEWS CORE OPERATING PROFITS FOR THE 11 LENDERS ROSE AN AVERAGE 31 REFLECTING THAT BANKS' FUNDING COSTS HAVE FALLEN MORE RAPIDLY THAN THEIR LENDING RATES BUT ANALYSTS CAUTIONED THAT GROWTH IN OPERATING PROFITS IS LIKELY TO TAPER OFF UNLESS THE CENTRAL BANK CONTINUES TO LOWER INTEREST RATES A SPOKESMAN FOR DAIICHI KANGYO BANK LTD THE WORLD'S LARGEST BANK SAID BAD LOANS LIKELY PEAKED LAST YEAR STILL FINANCIAL ANALYSTS SAY IT WILL PROBABLY TAKE BETWEEN THREE AND FIVE YEARS FOR JAPAN'S CITY BANKS TO FULLY RESOLVE THEIR BADDEBT TROUBLES FOR WEAKER LENDERS THE RECOVERY PROCESS COULD TAKE AS LONG AS 10 YEARS THURSDAY'S FINANCIAL REPORTS SHOWED CLEARLY THAT SEVERAL CITY BANKS ARE EMERGING FROM THE WRECKAGE OF JAPAN'S STOCK AND PROPERTY CRASH IN MUCH BETTER SHAPE THAN DOMESTIC COMPETITORS SANWA BANK LTD FOR EXAMPLE LED JAPANESE CITY BANKS IN PROFITABILITY LAST YEAR EVEN THOUGH THE OSAKABASED LENDER TRAILS GIANT RIVALS SUCH AS DAIICHI KANGYO FUJI BANK LTD AND SAKURA BANK LTD IN ASSET SIZE ANALYSTS LAUDED SANWA FOR FOCUSING ON LOANS TO SMALL AND MEDIUMSIZED FIRMS IN ITS HOME MARKET WHILE OTHER JAPANESE BANKS WERE CHASING MARKET SHARE IN UNPROFITABLE BUSINESS AREAS OVERSEAS SUMITOMO BANK LTD LOOKS TO BE ANOTHER WINNER THE BANK MOVED AGGRESSIVELY LAST YEAR TO PUT ITS TROUBLES BEHIND IT BY WRITING OFF BAD LOANS TO SCANDALPLAGUED AFFILIATE ITOMAN CO NET PROFIT OF SUMITOMO'S PARENT PLUNGED 87 LAST YEAR BUT ANALYSTS EXPECT EARNINGS TO BOUNCE BACK SMARTLY OVER THE NEXT TWO YEARS MITSUBISHI BANK LTD WHICH PURSUED RELATIVELY PRUDENT LENDING POLICIES DURING THE SPECULATIVE BOOM OF THE 1980S HAS ALSO PULLED AHEAD OF THE PACK 9305280052 930528 MARKETING & MEDIA LIBERTY MEDIA UNIT TO OFFER CHANNEL FOR MOVIES ON CABLE BY MARK ROBICHAUX AND RICHARD TURNER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LIBERTY MEDIA CORP'S ENCORE PAYTV UNIT SET PLANS FOR A NEW MOVIE CHANNEL TO CHALLENGE HBO AND SHOWTIME AND SIGNED UP MCA INC'S UNIVERSAL FILM STUDIO TO AN EXCLUSIVE FIVEYEAR DEAL MAKING THE NEW SERVICE THE FIRST TV OUTLET FOR UPCOMING UNIVERSAL MOVIES THOUGH NO FINANCIAL DETAILS WERE GIVEN PEOPLE FAMILIAR WITH THE AGREEMENT SAID THE PACT COULD BE VALUED AT FROM 350 MILLION TO 500 MILLION OVER FIVE YEARS DEPENDING ON HOW THE MOVIES PERFORM ON THE NEW CHANNEL WHICH IS TO BE LAUNCHED ON SOME CABLE SYSTEMS NEXT JANUARY THE NEW SERVICE WHICH ALSO WILL FEATURE MOVIES FROM THE UNIVERSAL LIBRARY AND OTHER SOURCES WILL COST CONSUMERS LESS THAN THE MONTHLY FEES CHARGED BY TIME WARNER INC'S HBO OR BY VIACOM INC'S SHOWTIME THE NEW NETWORK YET TO BE NAMED ALSO PROMISES TO BE ONE OF MANY NEW PAY TV NETWORKS TO SURFACE AS CABLE OPERATORS SEEK NEW REVENUE TO SIDESTEP RESTRICTIONS IN RECENTLY PASSED CABLE REGULATIONS ENCORE EARLIER THIS WEEK ALSO SAID IT WOULD LAUNCH SIX NEW THEMEORIENTED PAY CHANNELS THAT WILL SHOW OLDER FILMS THE NEW SERVICE WILL START FIRST ON SYSTEMS OWNED BY TELECOMMUNICATIONS INC THE NATION'S LARGEST CABLE OPERATOR WITH 10 MILLION SUBSCRIBERS ENCORE A LOWERPRICED CHANNEL THAT AIRS MOVIES FIRST RELEASED IN THE 1960S '70S AND '80S IS OWNED BY CHAIRMAN JOHN SIE AND LIBERTY MEDIA CORP A SPINOFF OF TELECOMMUNICATIONS OF ENCORE'S NEARLY FOUR MILLION SUBSCRIBERS ALL BUT ABOUT 700000 ARE TELECOMMUNICATIONS CUSTOMERS THE NEW DEAL WITH THE UNIVERSAL PAY TELEVISION INC UNIT OF MCA WHICH ITSELF IS OWNED BY MATSUSHITA ELECTRIC INDUSTRIAL CO COULD INCLUDE ABOUT 100 FILMS STARTING WITH LAST CHRISTMAS'S RELEASES SUCH AS SCENT OF A WOMAN BUT IT WOULD EXCLUDE CERTAIN FILMS FOR WHICH PRODUCERS HAVE SPECIAL ARRANGEMENTS STEVEN SPIELBERG FOR INSTANCE SHARES PAY CABLE RIGHTS WITH MCA ON JURASSIC PARK AND THAT WILL BE LICENSED SEPARATELY PAY CABLE DEALS ARE CALCULATED BY A FORMULA DERIVED FROM HOW A FILM PERFORMS IN THEATERS WITH A CEILING AND A FLOOR DETERMINING THE RANGE MCA COULD REAP FROM 350 MILLION TO 500 MILLION DEPENDING UPON HOW THE MOVIES PERFORM MCA HAS LONG BEEN A RENEGADE IN THE PAY CABLE AREA WHILE OTHER STUDIOS HAD LONGTERM EXCLUSIVE AGREEMENTS WITH HBO OR SHOWTIME MCA TENDED TO HAVE DIFFICULTY NEGOTIATING THESE MCA PRESIDENT SIDNEY SHEINBERG WASN'T SHY ABOUT CALLING THE TWO PAY CABLE GIANTS MONOPOLISTIC THE STUDIO'S STRONG 1989 SLATE OF MOVIES DIDN'T GO TO PAY CABLE AT ALL INSTEAD THEY WERE LICENSED DIRECTLY TO CBS SINCE THEN UNIVERSAL HAS LICENSED ITS FILMS ON A PIECEMEAL BASIS LAST YEAR'S FILMS WENT TO SHOWTIME AND FOX THE TRANSACTION IS ONLY THE LATEST OF A NUMBER OF RECENT FORAYS INTO HOLLYWOOD BY TELECOMMUNICATIONS WHOSE ACQUISITION OF PAYPERVIEW RIGHTS TO CERTAIN FILMS PRODUCED BY CAROLCO PICTURES INC TO AIR PRIOR TO THEIR OPENING IN THEATERS SET OFF HOWLS OF PROTESTS FROM MOVIE EXHIBITORS 9305280051 930528 NOISE CANCELLATION PUTS ITS MUFFLERS TO TEST IN A WAY WITH BUS TRIAL NEW YORK CITY CITES FUEL ECONOMY GAINS INSTEAD OF NOISE REDUCTION BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL STAMFORD CONN NOISE CANCELLATION TECHNOLOGIES INC WANTS TO DEMONSTRATE THE NOISE REDUCTION PROPERTIES OF ELECTRONIC MUFFLERS BUT IT MAY BE JUMPING THE GUN A BIT THE COMPANY SAID THE NEW YORK CITY TRANSIT AUTHORITY HAS BEGUN A SIXMONTH TEST OF FOUR BUSES EQUIPPED WITH ELECTRONIC MUFFLERS THE MUFFLERS WERE DEVELOPED BY WALKER NOISE CANCELLATION TECHNOLOGIES A JOINT VENTURE WITH WALKER MANUFACTURING CO A DIVISION OF TENNECO INC'S TENNECO AUTOMOTIVE SUBSIDIARY THE MUFFLERS USE ELECTRONICS TO REDUCE UNDESIRABLE NOISE BY PRODUCING AN EQUAL BUT OPPOSITE SOUND AN ANTINOISE BUT THE NEW YORK CITY TRANSIT AUTHORITY SEEMS MORE INTERESTED IN THE MUFFLERS' FUEL ECONOMY BENEFITS A TRANSIT AUTHORITY SPOKESMAN SAID THAT DURING INITIAL TESTS THE ELECTRONIC MUFFLERS REDUCED BACK PRESSURE ON THE ENGINE ALLOWING IT TO OPERATE MORE EFFICIENTLY WE'RE HOPEFUL THAT WITH THIS DEVICE PLUS MINOR MODIFICATIONS TO THE ENGINE'S FUEL INJECTION SYSTEM TO REALIZE FUEL ECONOMY GAINS OF ABOUT 5 HE SAID BUT WE HAVEN'T NOTICED ANY IMPROVEMENT IN ENGINE NOISE OUR CURRENT BUSES HAVE VERY QUIET ENGINES NOISE CANCELLATION IN A STATEMENT YESTERDAY ABOUT THE TEST SAID THAT NOISE FROM THE BUSES' EXHAUST SYSTEMS HAS BEEN REDUCED SIGNIFICANTLY UNDER SOME OPERATING CONDITIONS SCOTT BUEHRER DIRECTOR OF OPERATIONS OF WALKER NOISE CANCELLATION TECHNOLOGIES SAID WE UNDERSTAND THAT A LOT OF TRANSIT AUTHORITIES ARE RELUCTANT TO ADMIT THEY HAVE PROBLEMS BUT AT THE SAME TIME THEY LOOK FOR OPPORTUNITIES TO REDUCE NOISE FROM THEIR BUSES HE ADDED THAT THE NEW YORK CITY BUSES EQUIPPED WITH ELECTRONIC MUFFLERS HAVEN'T BEEN OPERATING LONG ENOUGH OR IN SUFFICIENT NUMBERS TO YET DEMONSTRATE THEIR NOISE REDUCTION BENEFITS THE TRANSIT AUTHORITY HAS BEGUN TO TRACK AND EVALUATE THE MUFFLER'S PERFORMANCE AGAINST A CONTROL FLEET NEW YORK CITY ENVIRONMENTAL OFFICIALS ALSO ARE CONDUCTING A TEST OF EMISSIONS FROM BUSES WITH THE NEW MUFFLER THE TESTS ARE BEING DONE IN CONJUNCTION WITH DETROIT DIESEL CORP THE MAKER OF THE ENGINES USED IN NEW YORK CITY TRANSIT AUTHORITY BUSES MR BUEHRER SAID THE ELECTRONIC MUFFLERS ARE MORE EXPENSIVE BUT THEY PROVIDE MORE BENEFITS TO THE CUSTOMER THAN CONVENTIONAL MUFFLERS HE SAID ELECTRONIC MUFFLERS SELL FOR ABOUT 1300 APIECE COMPARED WITH ABOUT 300 FOR A CONVENTIONAL BUS AFTERMARKET MUFFLER IN ADDITION TO NEW YORK CITY WHICH OPERATES 3565 BUSES MONTREAL AND TWO OTHER TRANSIT AUTHORITIES HAVE AGREED TO TEST THE ELECTRONIC MUFFLERS ON THEIR BUSES MR BUEHRER SAID SEPARATELY NOISE CANCELLATION TECHNOLOGIES SAID IT WILL INTRODUCE AN AUDIO HEADSET CALLED NOISEBUSTER THAT USES THE COMPANY'S ELECTRONIC NOISE CANCELLATION TECHNOLOGY TO REDUCE A VARIETY OF ANNOYING NOISES THE COMPANY SAID IT WILL OFFER THREE STYLES OF THE NOISEBUSTER WITH PRICES RANGING FROM 99 TO 199 COMPARED WITH CONVENTIONAL AUDIO HEADSETS WHICH TYPICALLY SELL FOR BETWEEN 30 AND 50 NOISE CANCELLATION ALSO SAID IT AND DOWTY AEROSPACE A MEMBER OF LONDON'S TI GROUP RECEIVED AN ORDER TO SUPPLY SOUNDQUIETING SYSTEMS TO SWEDEN'S SAAB AIRCRAFT AB THE COMPANY SAID THE SYSTEMS WILL BE FITTED TO SAAB 340 COMMUTER AIRCRAFT DURING 1994 THE COMPANY DIDN'T GIVE PRICE AND TERMS OF THE CONTRACT BUT SAID THE ORDER IS POTENTIALLY WORTH 25 MILLION OVER THE LIFE OF THE PROGRAM 9305280050 930528 OTC FOCUS INDEX INCHES UP DESPITE PROFITTAKING GAUGE IS NEAR RECORD IN EARLY TRADING BY THOMAS E WEBER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PROFITTAKERS MOVED TO CASH IN ON NASDAQ STOCKS' RECENT GAINS BUT THE OVERTHECOUNTER MARKET STILL MANAGED TO POST A SLIGHT GAIN THE NASDAQ COMPOSITE INDEX ENDED AT 70459 A GAIN OF 050 POINT OR 007 ON WEDNESDAY THE INDEX JUMPED 13 EARLY IN THE SESSION OTC ISSUES SEEMED POISED TO SET A RECORD THE NASDAQ COMPOSITE CLIMBED TO ABOUT 707 IN THE MORNING BEFORE TAPERING OFF SHORT OF THE 70885 RECORD SET IN FEBRUARY AT ITS HIGH FOR THE DAY THE INDEX WAS UP NEARLY TWO PERCENTAGE POINTS FOR THE WEEK ADVANCERS OUTNUMBERED DECLINERS 1426 TO 1203 NATIONAL MARKET SYSTEM VOLUME WAS 238 MILLION SHARES DOWN FROM 255 MILLION WEDNESDAY NEW YORK STOCK EXCHANGE STOCKS WERE MIXED AS THE DOW JONES INDUSTRIAL AVERAGE PRESSED FURTHER INTO RECORD TERRITORY BUILDING ON THE RECORD SET WEDNESDAY THE INDUSTRIAL AVERAGE CLOSED AT 355483 UP 1467 BUT THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DROPPED 047 POINT TO 24943 JACK SOLOMON TECHNICAL ANALYST AT BEAR STEARNS & CO SAID ACTION IN OTC STOCKS WAS SCATTERED ACROSS A VARIETY OF SEGMENTS WITH NO SINGLE SECTOR SETTING A DIRECTION FOR THE MARKET THERE'S NO THEME HERE MR SOLOMON SAID THERE'S PROFITTAKING AND THE RESISTANCE OF THE RECORD HIGH I SEE PROFITTAKING HERE AND THERE SAID ROBERT O'TOOLE SR HEAD OF NASDAQ INSTITUTIONAL SALES AT LEHMAN BROTHERS MR O'TOOLE SAID PLAYERS WERE ALSO BEGINNING TO UNWIND POSITIONS AHEAD OF THE MEMORIAL DAY WEEKEND HOLIDAY INTERESTRATE JITTERS MAY HAVE HELPED TO RESTRAIN SMALLCAPITALIZATION ISSUES ON NASDAQ SAID DENNIS MURRAY HEAD OTC TRADER AT DAIN BOSWORTH INC IF INTEREST RATES MOVE UP IT WILL KILL A LOT OF THE FUN WE'VE BEEN HAVING HE SAID THE BOND MARKET FINISHED ESSENTIALLY FLAT AFTER RECOVERING FROM A MIDDAY TUMBLE ON CONCERN OVER THE POSSIBILITY OF MONEYSUPPLY TIGHTENING BY THE FEDERAL RESERVE BOARD THE HIGHER INTEREST RATES THAT A TIGHTER MONEY SUPPLY WOULD PROVOKE WOULD ESPECIALLY HURT SMALLER COMPANIES LOOKING FOR EASY ACCESS TO FUNDS NEWS OF A TAKEOVER OFFER SENT SHARES OF AMOSKEAG ROCKETING 4 3/4 TO 35 1/4 BIG BOARDLISTED SPRINGS INDUSTRIES MADE AN UNSOLICITED BID FOR AMOSKEAG SPRINGS IS SEEKING TO BUY ANOTHER BIG BOARD COMPANY FIELDCREST CANNON AMOSKEAG OF BOSTON IS THE CONTROLLING SHAREHOLDER OF FIELDCREST SPRINGS PROPOSED TO BUY AMOSKEAG FOR 35 A SHARE IN CASH AND SPRINGS STOCK AMOSKEAG WOULDN'T COMMENT BUT FIELDCREST SAID IT ISN'T FOR SALE ON THE BIG BOARD FIELDCREST JUMPED 2 3/4 TO 26 3/8 WHILE SPRINGS LOST 1 1/2 TO 47 1/4 AEP INDUSTRIES JUMPED 1 1/8 TO 15 1/8 THE SOUTH HACKENSACK NJ MAKER OF POLYETHYLENE FILM ANNOUNCED THAT EARNINGS FOR THE FISCALSECOND QUARTER ROSE TO 42 CENTS A SHARE FROM 20 CENTS A YEAR AGO SEQUENT COMPUTER SYSTEMS BEAVERTON ORE TUMBLED 1 3/4 TO 20 1/8 PRUDENTIAL SECURITIES DOWNGRADED THE COMPANY'S STOCK TO HOLD FROM BUY KEY TRONIC SURGED 1 3/8 TO 12 7/8 ON NEWS OF A DEAL WITH BIG BOARDLISTED HONEYWELL KEY TRONIC SPOKANE WASH SAID IT AGREED TO BUY HONEYWELL'S COMPUTER KEYBOARD DIVISION FOR CASH A NOTE AND KEY TRONIC STOCK IN A TRANSACTION VALUED AT 33 MILLION HONEYWELL GAINED 5/8 TO 37 7/8 SECOR BANK ROSE 3/4 TO 19 THE BIRMINGHAM ALA BANK ANNOUNCED LATE WEDNESDAY THAT IT ENTERED A DEFINITIVE AGREEMENT TO BE ACQUIRED BY FIRST ALABAMA BANCSHARES AN AGREEMENT IN PRINCIPLE FOR THE MERGER HAD BEEN DISCLOSED MAY 18 FIRST ALABAMA LOST 3/8 TO 33 US HEALTHCARE FELL 2 1/2 TO 49 1/2 TRADERS AND ANALYSTS BLAMED THE MOVE ON CONCERN THAT THE GROWTH RATE FOR ENROLLMENT IN THE COMPANY'S HEALTH CARE PLANS WILL SLOW THIS YEAR ADC TELECOMMUNICATIONS FINISHED UP 2 AT 54 THE MINNEAPOLIS COMPANY ANNOUNCED A 2FOR1 STOCK SPLIT AFTER THE MARKET'S CLOSE WEDNESDAY EATON VANCE WENT 1 HIGHER TO 33 AFTER REPORTING SECONDQUARTER EARNINGS GROWTH OF MORE THAN 60 THE BOSTONBASED INVESTMENT MANAGER EARNED 86 CENTS A SHARE UP FROM 53 CENTS A YEAR AGO COMPUTER MAKER AST RESEARCH ROSE 7/8 TO 17 FOLLOWING A 1POINT JUMP WEDNESDAY AMID PRAISE FOR ITS MOVE TO PURCHASE SOME OPERATIONS FROM BIG BOARDLISTED TANDY AST SAID WEDNESDAY THAT IT WOULD BUY TANDY'S PERSONAL COMPUTER MANUFACTURING BUSINESS FOR ABOUT 175 MILLION 9305280049 930528 HEALTH PSYCHIATRISTS DECLARE SEVERE PMS A DEPRESSIVE DISORDER BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO TO THE DISMAY OF SOME FEMINISTS THE AMERICAN PSYCHIATRIC ASSOCIATION HAS CREATED A NEW CLASS OF DEPRESSION BASED ON HORMONAL CHANGES IN WOMEN THIS WEEK THE ASSOCIATION VOTED AT ITS ANNUAL MEETING HERE TO LIST A SEVERE FORM OF PREMENSTRUAL SYNDROME OR PMS AS A DEPRESSIVE DISORDER IN ITS NEW DIAGNOSTIC MANUAL OF MENTAL ILLNESS THE PROFESSIONAL SOCIETY CONTENDS THAT RECOGNIZING THE SYNDROME WILL IMPROVE TREATMENT AND PROVIDE BETTER STANDARDS FOR RESEARCH THE VOTE IS SCHEDULED TO BE RATIFIED BY THE ASSOCIATION'S TRUSTEES IN JULY BUT THE NATIONAL ORGANIZATION FOR WOMEN FEARS THE MOVE WILL GIVE WOMEN'S MONTHLY WOES LONG THE PROVINCE OF TACKY JOKES AND BUMPER STICKERS THE STIGMA OF A MENTAL DISORDER WITH SERIOUS SOCIAL AND ECONOMIC PENALTIES DECRYING THE MOVE AS DANGEROUS NOW ARGUES THE NEW CATEGORY PATHOLOGIZES A PART OF THE NORMAL FEMALE EXPERIENCE WORSE NOW CONTENDS THE MOVE INVITES DISCRIMINATION AGAINST WOMEN IN JOBS CUSTODY HEARINGS AND INSURANCE SO FAR NOW ARGUES THE PSYCHIATRIC ASSOCIATION HASN'T PAID EQUAL ATTENTION TO THE EFFECTS OF TESTOSTERONE ON MALE BEHAVIOR AND MENTAL HEALTH NOW ALSO CHARGES THAT THE MOVE MAY BE FINANCIALLY MOTIVATED BECAUSE PSYCHIATRISTS LIKE MANY DOCTORS ARE FINDING THAT THE TREND TOWARD LIMITING REIMBURSEMENTS HAS BEGUN TO TRIM THEIR REVENUE IT'S THE SHINY NEW THING ON THE BLOCK MASSIVE NUMBERS OF WOMEN EXPERIENCING NORMAL SYMPTOMS CAN THINK NOW I CAN GO TO THE DOCTOR AND GET RELIEF' SAYS HELEN GRIECO AN OFFICIAL OF NOW'S CALIFORNIA CHAPTER BUT SHE WARNS YOU GET THIS DIAGNOSIS AND IT'S IN YOUR INSURANCE RECORDS THAT'S GOING TO TRAIL YOU FOR THE REST OF YOUR LIFE AN ASSOCIATION OFFICIAL DENIES THAT ECONOMIC CONSIDERATIONS ARE A REASON FOR THE MOVE WHAT'S AT STAKE IS AN UPDATE OF THE PSYCHIATRISTS' BIBLE THE DIAGNOSTIC AND STATISTICAL MANUAL OF MENTAL DISORDERS THAT WOULD ADD THE PROPOSED DISEASE DEFINITION AND A LIST OF SYMPTOMS TO MEET THE DIAGNOSIS AT LEAST FIVE OF THE FOLLOWING SYMPTOMS INCLUDING AT LEAST ONE OF THE FIRST FOUR MUST BE PRESENT AND INTERFERE WITH NORMAL SOCIAL ACTIVITIES AND RELATIONSHIPS DEPRESSION ANXIETY MOOD SWINGS ANGER OR IRRITABILITY DECREASED INTEREST IN WORK SCHOOL FRIENDS HOBBIES DIFFICULTY CONCENTRATING LETHARGY APPETITE CHANGES SLEEP DISTURBANCES FEELING OVERWHELMED OR OUT OF CONTROL PHYSICAL SYMPTOMS ASSOCIATED WITH THE MENSTRUAL CYCLE SUCH AS BREAST TENDERNESS HEADACHES WEIGHT GAIN OR BLOATING THE PSYCHIATRISTS SUGGEST THAT PREMENSTRUAL DYSPHORIC DISORDER AS THE NEWLY MINTED DIAGNOSIS IS KNOWN MAY AFFECT ONLY 3 TO 5 OF THE FEMALE POPULATION NOW HOWEVER CONTENDS THAT THE SYMPTOMS ARE SO GENERAL AND VAGUE THAT 42 OF WOMEN EXPERIENCE THEM YOU'RE TALKING ABOUT ANOTHER 500000 WOMEN WHO COULD BE CLASSIFIED AS MENTALLY ILL MS GRIECO CHARGES THE PSYCHIATRISTS' SPOKESWOMAN ON THE ISSUE IS NADA STOTLAND A PSYCHIATRIST AND PROFESSOR AT THE UNIVERSITY OF CHICAGO MEDICAL SCHOOL WHO SERVED AS CHAIRWOMAN OF THE ASSOCIATION'S WOMEN'S CAUCUS WHILE ACKNOWLEDGING THERE'S REAL CONTROVERSY SHE ACCUSES NOW OF BEING ALARMIST MOREOVER SHE SAYS SHE AND OTHER MEMBERS OF THE STUDY GROUP ARE ALL ACADEMICS AND THUS UNLIKELY TO GAIN PATIENTS OR REVENUE FROM THE MOVE NOW HAS DONE A CERTAIN AMOUNT OF CONFLATING AND CONFUSING THINGS SAYS DR STOTLAND PMDD ISN'T PMS BUT A DISABLING DEPRESSION SHE ADDS THAT THE DIAGNOSIS ISN'T CASUAL BUT REQUIRES TWO MONTHS OF PROSPECTIVE DAILY EVALUATION BY THE PATIENT OF HER OWN CONDITION AND A PROFESSIONAL PSYCHIATRIC EXAMINATION DR STOTLAND SAYS THE WORKING GROUP ON THE NEW DIAGNOSIS FELT THAT WOMEN'S SUFFERING HASN'T BEEN ATTENDED TO AND THAT THE NEW STANDARDIZED DEFINITION MIGHT ELIMINATE MISDIAGNOSIS AND LEAD TO BETTER STUDIES OF HORMONELINKED DEPRESSION SUCH STUDIES ARE SORELY NEEDED THERE CURRENTLY ISN'T AN ACCEPTED TREATMENT FOR MONTHLY DEPRESSION LINKED TO THE MENSTRUAL CYCLE HORMONE TREATMENTS DON'T DO ANY GOOD DR STOTLAND SAYS CURRENT CANDIDATE DRUGS INCLUDE ANTIDEPRESSANTS LIKE XANAX AND PROZAC IN ANY CASE SHE ARGUES GYNECOLOGISTS AREN'T EQUIPPED TO HANDLE THE DISORDER DR STOTLAND ALSO NOTES THAT A SIMILAR DEFINITION HAS EXISTED IN THE PSYCHIATRIC MANUAL FOR SIX YEARS UNDER THE ARCANE LABEL OF LATE LUTEAL PHASE DYSPHORIC DISORDER DESPITE FEMINIST PROTESTS OVER THE DEFINITION AT THE TIME SHE SAYS SHE KNOWS OF NO MISDIAGNOSES OR ABUSES THAT RESULTED FROM IT EITHER IN CLINICS OR IN COURTS PMS HAS BEEN USED AS A DEFENSE AGAINST A VARIETY OF CRIMINAL CHARGES SHE SAYS BUT AFTER AN EXTENSIVE SEARCH AT THE UNIVERSITY OF CHICAGO LAW SCHOOL SHE ADDS I'M NOT AWARE THAT IT'S EVER BEEN SUCCESSFULLY USED STUDIES OF FEMALE PSYCHOLOGY PARTICULARLY THOSE LINKED WITH CONDITIONS LIKE POSTPARTUM DEPRESSION AND MENOPAUSE ARE A DOUBLEEDGED SWORD FOR THE PROFESSION DR STOTLAND ACKNOWLEDGES ALL THOSE AREAS HAVE BEEN SORELY NEGLECTED AND WOMEN AND THEIR FAMILIES HAVE SUFFERED TERRIBLE PAIN ON THE OTHER HAND WHENEVER YOU STUDY THOSE THINGS LINKED TO WOMEN'S REPRODUCTIVE FUNCTIONS IT FEEDS THE PERCEPTION OF WOMEN AS WEAK INFERIOR OR PATHOLOGICAL SUCH CONFLICTS DR STOTLAND ADDS ARE AS OLD AS MEDICINE ITSELF THIS GOES BACK 2500 YEARS THE TERM HYSTERIA COMES FROM HIPPOCRATES WHO BELIEVED THAT SYMPTOMS WITHOUT A MEDICAL CAUSE WERE CAUSED BY THE UTERUS DOCTORS HAVE PAID FAR LESS ATTENTION TO THE POSSIBLE INTERPLAY BETWEEN MALE HORMONES AND MENTAL HEALTH DR STOTLAND SAYS THAT AS A PSYCHIATRIST SHE BELIEVES IT'S ALSO IMPORTANT TO STUDY MEN'S HORMONAL FLUX AND ITS POSSIBLE RELATION TO DOMESTIC VIOLENCE AND OTHER SOCIAL ISSUES LOOK SHE SAYS WHO PAYS THE MOST CAR INSURANCE TEENAGED BOYS WHO HAVE A SURGE OF TESTOSTERONE THEY'RE MORE LIKELY TO GET INTO ACCIDENTS AND DRIVE WILDLY 9305280048 930528 ROHR HAD NET LOSS OF 222 MILLION FOR ITS 3RD QUARTER BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHULA VISTA CALIF ROHR INC REPORTED A NET LOSS OF 222 MILLION OR 124 A SHARE FOR ITS FISCAL THIRD QUARTER ENDED MAY 2 AND TOOK 2752 MILLION IN CHARGES AND ADJUSTMENTS LARGELY BECAUSE OF THE DECLINING FORTUNES OF THE AEROSPACE INDUSTRY SALES IN THE LATEST QUARTER DROPPED SLIGHTLY TO 297 MILLION FROM 299 MILLION THE BULK OF ROHR'S ADJUSTMENTS WAS A 2422 MILLION NONCASH CHARGE EFFECTIVE BACK TO AUG 1 1992 TO REFLECT NEW ACCOUNTING PRINCIPLES ON EIGHT KEY PROGRAMS OF THIS MAKER OF AIRCRAFT COMPONENTS THE COMPANY ALSO TOOK A NONCASH CHARGE OF 43 MILLION TO ACCOUNT FOR POSTRETIREE HEALTH BENEFITS A 133 MILLION NONCASH CHARGE TO SHAREHOLDER'S EQUITY RELATED TO ITS UNDERFUNDED PENSION PLAN AND A 154 MILLION RESTRUCTURING CHARGE JAMES J KERLEY ROHR'S CHAIRMAN SAID ROHR ADJUSTED ITS ACCOUNTING POLICIES BECAUSE THE COMPANY CONCLUDED THERE WAS A NEED PARTICULARLY IN LIGHT OF THE CURRENT AEROSPACE ENVIRONMENT TO HAVE OUR ACCOUNTING PRINCIPLES MORE CLOSELY REFLECT NEARTERM PROGRAM ECONOMICS AS A MAKER OF NACELLES THE HOUSINGS FOR JET ENGINES ROHR IS FEELING THE PINCH OF A GENERAL AEROSPACE INDUSTRY SLOWDOWN SPECIFICALLY ROHR SAID IT WILL STOP AMORTIZING PREPRODUCTION COSTS SUCH AS ENGINEERING AND TOOLING OVER THE EXPECTED LIFE OF AN AIRPLANE PROGRAM AND WILL PAY FOR THEM UP FRONT INSTEAD ROHR'S KEY PROGRAMS INCLUDE NACELLES FOR AIRBUS INDUSTRIE'S A320 AND A321 JETS BOEING CO'S 747 AND 767 PLANES AND MCDONNELL DOUGLAS CORP'S MD11 PLANE REDUCED PRODUCTION RATES AND CANCELED AIRLINE ORDERS OVER THE PAST 18 MONTHS HAVE OBVIOUSLY HAD QUITE AN EFFECT ON THE COMPANY SAID ROBERT MEAD A ROHR SPOKESMAN ROHR ALSO SAID THAT IT OBTAINED WAIVERS FROM ITS LENDERS BEFORE ADOPTING THE ACCOUNTING CHANGES SO AS TO REMAIN IN COMPLIANCE WITH FINANCIAL PERFORMANCE COVENANTS WOLFGANG DEMISCH AN ANALYST AT UBS SECURITIES HAILED THE WAIVERS AS A POSITIVE MOVE THAT EASES ROHR'S SHORTTERM FINANCIAL WOES BUT BY NO MEANS SOLVES THE COMPANY'S OVERARCHING PROBLEMS YOU'VE ADJUSTED THE NUMBERS TO CONFORM TO PRESENTDAY REALITY AND YOU'VE DONE IT WITH THE BLESSING OF THE CREDITORS HE SAID BUT AIRPLANE DELIVERIES STILL PROMISE TO BE REDUCED SIGNIFICANTLY OVER THE NEXT TWO YEARS AND THERE'S STILL MUCH WORK TO BE DONE CERTAINLY ROHR CAN'T RELAX THE ROHR SPOKESMAN SAID THE COMPANY PLANS TO FILE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION IN JUNE FOR A PUBLIC OFFERING OF 100 MILLION TO 125 MILLION IN HIGHYIELD BONDS PROCEEDS WOULD BE USED PRIMARILY TO PAY DOWN DEBT ROHR SAID IT HAS TOTAL DEBT OF 108 BILLION ROHR ALSO SAID IT HAD REDUCED CAPITAL EXPENDITURES IN FISCAL 1993 TO APPROXIMATELY 30 MILLION FROM THE ORIGINALLY PLANNED 40 MILLION AND THAT ITS WORK FORCE HAS SHRUNK TO 7450 AS OF MAY 2 DOWN FROM 12000 IN FISCAL 1989 THE ROHR SPOKESMAN SAID THAT THE COMPANY PLANS TO CUT ITS RANKS BY AN ADDITIONAL 450 PEOPLE BY JULY 31 A FIGURE THAT HE SAID WOULD REACH OR SLIGHTLY EXCEED PREVIOUSLY ANNOUNCED TARGETS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ROHR SHARES WERE QUOTED AT 975 A SHARE UNCHANGED 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 9305280047 930528 PERMIT FOR DREDGING A PORT IN NEW JERSEY IS REINSTATED BY US NEW YORK THE US ARMY CORPS OF ENGINEERS REINSTATED A PERMIT THAT WOULD ALLOW THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY TO DREDGE ITS PORT NEWARK/PORT ELIZABETH FACILITIES THE PERMIT WILL ALLOW THE PORT AUTHORITY TO REMOVE ACCUMULATED SILT FROM THE BOTTOM OF THE HARBOR AND DISPOSE OF THE SILT AT A DUMP SITE SIX MILES EAST OF SANDY HOOK NJ IN THE ATLANTIC OCEAN THE AUTHORITY WILL DUMP AND COVER THE SILT AT THE SITE KNOWN AS THE MUD DUMP THE PORT AUTHORITY SAID IT INTENDS TO BEGIN DREDGING SOMETIME IN JUNE THE PORT AUTHORITY HAD REQUESTED THE PERMIT TO DREDGE IN 1990 BUT CONCERNS ABOUT DIOXIN IN THE SILT RAISED SEVERAL ENVIRONMENTAL CONCERNS SEVERAL STUDIES MOST RECENTLY AN ENVIRONMENTAL IMPACT STUDY CONCERNING THE DUMPING'S EFFECT ON WHALES AND SEA TURTLES HAD HELD UP THE PERMIT'S APPROVAL THE CORPS SAID THE PERMIT INCLUDES SEVERAL RESTRICTIONS MEANT TO LIMIT THE IMPACT OF THE DREDGING INCLUDING MONITORING OF OVERDREDGING AND A DETAILED CAPPING STRATEGY AT THE MUD DUMP THE CAPPING RULES STIPULATE THAT IF A LAPSE IN DUMPING OF MORE THAN FIVE DAYS IS EXPECTED CAPPING PROCEDURES WILL BEGIN 9305280046 930528 THE CLINTON TAX PACKAGE INCREASE IN GASOLINE LEVY MULLED AS ENERGY TAX COMES UNDER FIRE BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WITH PRESIDENT CLINTON'S ENERGY TAX UNDER ATTACK IN THE SENATE AN INCREASE IN THE GASOLINE TAX IS ONCE AGAIN EMERGING AS A POSSIBLE ALTERNATIVE SEN JOHN BREAUX D LA A MAJOR CRITIC OF THE PRESIDENT'S PLAN TO IMPOSE A TAX ON NEARLY ALL FORMS OF ENERGY BASED ON ITS HEAT CONTENT MEASURED IN BRITISH THERMAL UNITS IS CONSIDERING A PROPOSAL TO RAISE THE GASOLINE TAX BY EIGHT CENTS A GALLON AS A PARTIAL SUBSTITUTE AND BUSINESS GROUPS SUCH AS THE NATIONAL ASSOCIATION OF MANUFACTURERS AND THE AMERICAN PETROLEUM INSTITUTE HAVE COYLY HINTED THAT THEY MIGHT PREFER A GASOLINE TAX TO THE BTU PROPOSAL THOUGH WHEN PRESSED THEY DECLINE TO OFFER OVERT SUPPORT RAISING THE FEDERAL GASOLINE TAX CURRENTLY 141 CENTS A GALLON WOULD CERTAINLY BE SIMPLER TO UNDERSTAND AND EASIER TO ADMINISTER THAN THE MINDNUMBINGLY COMPLEX BTU TAX BUT THE POLITICAL ENVIRONMENTAL AND REGIONAL EFFECTS OF A GASOLINE TAX ARE VASTLY DIFFERENT THAN THOSE OF A BTU TAX HERE'S HOW THE TWO COMPARE REVENUES WHEN THE BTU TAX IS FULLY PHASED IN IT WILL NET 22 BILLION A YEAR IN REVENUE TO MATCH THAT WOULD REQUIRE A GASOLINETAX RISE OF 25 CENTS TO 30 CENTS PER GALLON BUT BECAUSE THE BTU TAX WOULD BE PHASED IN GRADUALLY IT WOULD TAKE A RISE OF ONLY 15 TO 20 CENTS IN THE GASOLINE TAX TO MATCH THE 71 BILLION THAT THE BTU TAX IS PROJECTED TO RAISE IN THE NEXT FIVE YEARS SEN BREAUX IS THUS FAR CONTEMPLATING AN INCREASE OF ONLY 8 CENTS A GALLON WHICH WOULD NET 30 BILLION TO 40 BILLION LESS THAN A BTU TAX OVER FIVE YEARS ACCORDING TO SEN BREAUX'S SPOKESWOMAN BETTE PHELAN THE DIFFERENCE COULD BE MADE UP IN ADDITIONAL SPENDING CUTS OBTRUSIVENESS PART OF THE REASON THE WHITE HOUSE CHOSE TO GO WITH A BTU TAX IS BECAUSE IT'S LESS APPARENT THAN A GASOLINE TAX WHICH GIVES CONSUMERS STICKER SHOCK AT THE PUMP GASOLINE TAXES ARE POLITICALLY MORE VISIBLE OBSERVES ED ROTHSCHILD ENERGY POLICY DIRECTOR FOR CITIZEN ACTION AS A RESULT OF MODIFICATIONS MADE BY THE HOUSE WAYS AND MEANS COMMITTEE THE BTU TAX HAS BECOME MORE OBTRUSIVE HOWEVER UTILITIES SUCCESSFULLY LOBBIED TO REQUIRE THE TAX TO BE COLLECTED FROM CONSUMERS AS A RESULT MONTHLY ELECTRIC BILLS WILL CLEARLY SHOW THE BTU TAX'S COST ABOUT A 3 INCREASE BY 1996 ACCORDING TO THE TREASURY STILL A 3 INCREASE IN MONTHLY ELECTRIC BILLS IS FAR LESS DRAMATIC THAN A 20 INCREASE IN THE COST OF FUEL AT THE PUMP THE BTU TAX WILL INCREASE GASOLINE PRICES TOO BUT ONLY BY 7 TO 10 CENTS A GALLON INDICATE THE MOST DIRE PROJECTIONS ENVIRONMENT ENVIRONMENTAL GROUPS HAVE BEEN STRONG SUPPORTERS OF THE CLINTON BTU TAX PLAN MANY ALSO FAVOR A GASOLINE TAX LAST DECEMBER FOR INSTANCE MANY PROMINENT ENVIRONMENTALISTS INCLUDING DOUGLAS COSTLE AND RUSSELL TRAIN FORMER ADMINISTRATORS OF THE ENVIRONMENTAL PROTECTION AGENCY ISSUED A REPORT CALLING FOR A 1 INCREASE IN THE GASOLINE TAX TO BE PHASED IN OVER FIVE YEARS WHICH IS BETTER FOR THE ENVIRONMENT ROGER DOWER DIRECTOR OF THE CLIMATE ENERGY AND POLLUTION PROGRAM AT THE WORLD RESOURCES INSTITUTE SAYS IT DEPENDS ON YOUR ENVIRONMENTAL GOAL WITH A BTU TAX HE SAYS YOU DON'T GET VERY MUCH IN THE WAY OF ENVIRONMENTAL BANG OR IMPACT ON THE TRANSPORTATION SECTOR IN OTHER WORDS THE USE OF AUTOMOBILES THE SINGLE GREATEST CONTRIBUTORS TO URBAN SMOG WOULD DECLINE LESS WITH A BTU TAX THAN WITH A GASOLINETAX INCREASE ON THE OTHER HAND SAYS MR DOWER CARBON DIOXIDE EMISSIONS A MAJOR CONTRIBUTOR TO GLOBAL WARMING WOULD BE REDUCED SIGNIFICANTLY MORE BY A BTU TAX THAN A GASOLINE TAX MAINLY BECAUSE A BTU TAX WOULD PROVIDE UTILITIES WITH AN INCENTIVE TO BURN LESS COAL REGRESSIVITY OPPONENTS OF THE BTU TAX SAY THAT IT IS REGRESSIVE INDISCRIMINATELY RAISING ENERGY BILLS FOR POOR AND RICH ALIKE BUT OPPONENTS OF THE GASOLINE TAX SAY ESSENTIALLY THE SAME THING ABOUT IT THEY'RE PRETTY SIMILAR SAYS ROBERT MCINTYRE DIRECTOR OF THE LABORBACKED CITIZENS FOR TAX JUSTICE IN ADDITION TO RAISING TAXES BOTH WOULD LEAD TO GENERALIZED PRICE INCREASES HE SAYS ENERGY DEPARTMENT STUDIES SUGGEST THE GASOLINE TAX IS SLIGHTLY MORE REGRESSIVE THAN A BTU TAX CUTTING DEEPER INTO THE INCOMES OF THE POOREST FIFTH OF THE POPULATION BUT THE DIFFERENCES AREN'T GREAT FOR THE LOWEST FIFTH IN INCOMES EITHER TAX WOULD CONSUME NEARLY 1 OF PRETAX INCOME FOR THE SECONDLOWEST ROUGHLY 04 AND FOR THE TOP FIFTH ROUGHLY 01 REGIONAL EFFECTS THE EFFECTS OF THE TWO TAXES VARY GREATLY ACCORDING TO REGION IN THE NORTHEAST LOWINCOME PEOPLE OFTEN RELY ON PUBLIC TRANSPORTATION AND USE OIL TO HEAT THEIR HOMES AND THEREFORE WOULD BE HURT MORE BY A BTU TAX THAN A GASOLINE TAX BUT IN THE SOUTHEAST RURAL POOR OFTEN HAVE NO ALTERNATIVE TO TRAVEL BY CAR AND HAVE LESS NEED FOR HEATING FUEL THE SAME GOES FOR LOWINCOME PEOPLE LIVING IN THE SPRAWLING CITIES OF THE WEST THEY ARE REALLY HURT BADLY BY A GASOLINE TAX SAYS MR ROTHSCHILD THE WIDE REGIONAL VARIATIONS ARE ONE REASON THE CLINTON ADMINISTRATION REJECTS THE GASOLINE TAX THERE ARE PLACES WHERE IT HITS MUCH HARDER THAN IN OTHERS TREASURY SECRETARY LLOYD BENTSEN TOLD REPORTERS EARLIER THIS WEEK PARTICULARLY IF YOU GET IN STATES WITH LARGE RURAL AREAS VERY DEPENDENT ON AN AUTOMOBILE 9305280045 930528 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/16 HIGH 3 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 44 DAYS 310 45 TO 89 DAYS 313 90 TO 119 DAYS 315 120 TO 149 DAYS 320 150 TO 179 DAYS 323 180 TO 229 DAYS 335 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 316 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 264 TWO MONTHS 267 THREE MONTHS 283 SIX MONTHS 307 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 330 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 304 60 DAYS 307 90 DAYS 310 120 DAYS 315 150 DAYS 320 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 3/4 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 731 60 DAYS 740 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 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9305280044 930528 HONDA CUTS OUTPUT OF ACCORD 12 LOWER SALES RETOOLING CITED DETROIT HONDA MOTOR CO SAID IT CUT PRODUCTION ON ITS ACCORD MODEL THIS WEEK ABOUT 12 THAT IS IN LINE WITH PREVIOUSLY ANNOUNCED PLANS TO REDUCE SECONDQUARTER OUTPUT BECAUSE OF DECLINING SALES AND ASSEMBLYPLANT RETOOLING FOR THE NEW MODEL HONDA PLANS TO INTRODUCE ITS NEWGENERATION ACCORD IN THE 1994 MODEL YEAR SALES OF THE OLDER MODEL ACCORD ONCE THE BESTSELLING PASSENGER CAR IN THE US HAVE PLUNGED 35 TO DATE COMPARED WITH THE YEARAGO PERIOD CHRYSLER CORP AND GENERAL MOTORS CORP SAID A COMBINED TOTAL OF THREE ASSEMBLY PLANTS WILL BE IDLE BECAUSE OF MODEL CHANGEOVER OR SLOW SALES CHRYSLER SAID IT TEMPORARILY CLOSED ITS BELVIDERE ILL ASSEMBLY PLANT WHICH HAD BUILT THE DISCONTINUED DODGE DYNASTY AND CHRYSLER IMPERIAL FIFTH AVENUE AND SALON MODELS FOR MODEL CHANGEOVER THE FACILITY WILL REOPEN IN LATE NOVEMBER WHEN IT BEGINS PRODUCTION OF THE NEW DODGE NEON MODEL CHRYSLER SAID ABOUT 2700 EMPLOYEES WILL BE ON TEMPORARY LAYOFF DURING THE MODEL CHANGEOVER CHRYSLER SAID ITS WARREN MICH TRUCK ASSEMBLY PLANT ALSO WILL BE IDLE UNTIL THE WEEK OF JULY 19 GENERAL MOTORS SAID IT WILL EXTEND THE CLOSEDOWN AT ITS SCARBOROUGH ONTARIO ASSEMBLY PLANT FOR ANOTHER WEEK THE PLANT HAS BEEN IDLE FOR TWO WEEKS BECAUSE OF SLOW SALES THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD A TOTAL OF 225346 VEHICLES THIS WEEK UP 27 FROM 219479 VEHICLES BUILT THE YEAR EARLIER 9305280043 930528 CREDIT MARKETS LARGESTEVER MEXICAN CORPORATE ISSUE RECEIVES STRONG DEMAND AFTER BREAKTHROUGH DEBT RATING BY THOMAS T VOGEL JR AND CRAIG TORRES STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A TRIP SOUTH OF THE BORDER WAS NEVER AS POPULAR FOR INVESTORS AS IT WAS YESTERDAY WHEN CROWDS OF THEM SNATCHED UP THE LARGEST PUBLIC MEXICAN CORPORATE BOND DEAL EVER THE MEXICAN CEMENT COMPANY CEMEX SA SOLD 1 BILLION OF FIVEYEAR NOTES YESTERDAY IN THE EUROBOND MARKET IN A DOLLARDENOMINATED OFFERING THAT UNDERWRITERS AND INVESTORS CHARACTERIZED AS ONE OF THE MOST IMPORTANT ISSUES EVER TO COME FROM MEXICO A EUROBOND IS A SECURITY SOLD OUTSIDE THE COUNTRY OF THE ISSUER IT IS OFTEN DENOMINATED IN A CURRENCY DIFFERENT FROM THAT OF THE ISSUER'S COUNTRY IT WILL BE THE MOTHER OF ALL MEXICAN CORPORATE BONDS SAID NIKOS PAPPAYLIOU HEAD TRADER IN EMERGING MARKETS AT GT CAPITAL A UNIT OF THE INTERNATIONAL BANK OF LIECHTENSTEIN PRICES OF OTHER MEXICAN CORPORATE AND GOVERNMENT DEBT ROSE IN REACTION TO THE SUCCESSFUL DEAL MEANWHILE US TREASURYS ENDED SLIGHTLY LOWER THE BENCHMARK 30YEAR TREASURY BOND DROPPED NEARLY 1/8 POINT TO 102 14/32 TO YIELD 693 UP FROM 692 ON WEDNESDAY THE DEAL WAS SIGNIFICANT BECAUSE AMERICAN INSTITUTIONAL INVESTORS OF ALL STRIPES FROM INSURANCE COMPANIES TO PENSION FUNDS CLAMORED FOR SOME OF THE BONDS INDEED SOME FUND MANAGERS COMPLAINED THAT THE LEAD UNDERWRITER JP MORGAN SECURITIES LTD OF LONDON WAS STINGY IN HOW IT AWARDED THE BONDS TO INTERESTED INVESTORS DEMAND WAS SO STRONG THAT THE SIZE OF THE DEAL WAS INCREASED TO 1 BILLION FROM A PROJECTED RANGE OF 600 MILLION TO 800 MILLION ONE REASON WHY DEMAND FOR THE CEMEX BONDS WAS SO HUGE WAS THAT DUFF & PHELPS GAVE THE BOND AN INVESTMENTGRADE RATING OF TRIPLEBMINUS IT WAS THE SECOND TIME THIS MONTH THAT DUFF & PHELPS BROKE RATINGAGENCY TRADITION TYPICALLY STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC ARE RELUCTANT TO RATE MEXICAN CORPORATE BONDS HIGHER THAN MEXICAN SOVEREIGN DEBT NEITHER AGENCY HAS AN INVESTMENTGRADE RATING ON THE NATION OF MEXICO DUFF & PHELPS HAS NO OVERALL SOVEREIGN RATING FOR MEXICO BUT THIS MONTH DUFF & PHELPS BROKE RANKS AND RATED A THREEYEAR EUROYEN MEXICAN GOVERNMENT ISSUE TRIPLEB AN INVESTMENTGRADE RATING THE RATING OF CEMEX WAS INTEGRALLY TIED INTO DUFF & PHELPS'S POSITIVE OUTLOOK ON MEXICO SAID WILLIAM HAYES ASSISTANT VICE PRESIDENT AT THE AGENCY OUR FEELING IS THAT OVER THE NEAR TERM THE OUTLOOK IN MEXICO IS QUITE POSITIVE HE SAID THE AGENCY THINKS THE REFORMS INSTITUTED UNDER PRESIDENT CARLOS SALINAS DE GORTARI WILL CONTINUE WHEN HIS SUCCESSOR IS ELECTED A LITTLE MORE THAN A YEAR FROM NOW IN THE VIEW OF ASHWIN VASAN INTERNATIONAL FIXEDINCOME ANALYST AT OPPENHEIMER MANAGEMENT CORP DUFF & PHELPS'S BREAK WITH THE RANKS IS ENORMOUSLY IMPORTANT THE LOCK THAT MOODY'S AND S&P HAVE HAD ON EMERGING MARKET DEBT HAS BEEN BROKEN HE DECLARED SECONDLY HE SAID THE CEMEX DEAL PORTRAYS A NEW LEVEL OF ACCEPTABILITY FOR EMERGING MARKET COMPANIES THAT HAVE THEIR BUSINESSES IN ORDER BILLIONDOLLAR DEALS ARE ONLY DONE BY A SELECT GROUP OF BORROWERS HE SAID SINCE THE BEGINNING OF THIS YEAR THE MARKET FOR MEXICAN GOVERNMENT AND CORPORATE DEBT HAS RALLIED IN RESPONSE TO STRONG DEMAND FROM NEW TYPES OF AMERICAN BUYERS TRADITIONALLY MEXICAN DEBT HAS BEEN POPULAR WITH MUTUAL FUNDS SPECIALIZING IN THIRD WORLD DEBT PAPER OR WITH SPECULATIVE TRADERS BUT THE RECENT CREDIT RATING UPGRADES TO MEXICAN GOVERNMENT DEBT AND CERTAIN CORPORATE ISSUES HAVE CHANGED ALL THAT THIS IS THE FIRST BIG DEAL ALL THE DEMAND CAME OUT OF THE WOODWORK AND IT WAS BOUGHT BY REAL LONGTERM INVESTORS SAID MARK ARNOLD CHIEF OPERATING OFFICER OF NEW YORK INVESTMENT FIRM BEA ASSOCIATES THIS SHOWS WHAT US DEMAND CAN BE WHEN AN EMERGING MARKET DEAL IS PROPERLY STRUCTURED AND SIZED BECAUSE THE ISSUE WAS SOLD IN THE EUROBOND MARKET ONLY SOCALLED QUALIFIED INSTITUTIONAL BUYERS WITH 100 MILLION OR MORE OF CAPITAL WERE ELIGIBLE TO PURCHASE IT IN THE US THOSE FAMILIAR WITH THE DEAL SAID THAT WHILE DEMAND IN EUROPE WAS STRONG THE GREATEST DEMAND FOR THE BONDS CAME FROM AMERICAN INVESTORS CEMEX OR CEMENTOS MEXICANOS IS THE LARGEST CEMENT COMPANY IN THE AMERICAS AND THE FOURTHLARGEST IN THE WORLD ACCORDING TO JP MORGAN IT SOLD THE FIVEYEAR NOTES WITH A COUPON OF 8875 AT A PRICE OF 9953 TO YIELD 899 A SPREAD OF 370 PERCENTAGE POINTS OVER FIVEYEAR US TREASURY NOTES BY LATE YESTERDAY THE PRICE HAD JUMPED ABOUT A POINT OR ABOUT 10 FOR A BOND WITH A 1000 FACE VALUE TO 10053 ACCORDING TO ROBERT CITRONE A PORTFOLIO MANAGER FOR THE FIDELITY NEW MARKETS INCOME FUND THE BOND APPEALED TO INVESTORS BECAUSE CEMEX IS PRETTY WELL KNOWN AND IN A BUSINESS THAT IS EASY TO UNDERSTAND AND HAS GOOD CASH FLOWS BUT MORE IMPORTANTLY HE SAID THE INVESTMENTGRADE RATING FROM DUFF & PHELPS MADE A DIFFERENCE TO A NUMBER OF INVESTORS DISSATISFIED WITH LOW CORPORATE AND JUNK BOND YIELDS IN THE US THE RATING GAVE THEM THE OPPORTUNITY TO BUY A HIGHYIELD INVESTMENTGRADE ISSUE MUTUAL FUNDS AND INSURANCE COMPANIES THAT ORDINARILY MIGHT NOT HAVE PURCHASED THE ISSUE WERE MOVED TO DO SO BECAUSE OF THE FAVORABLE CREDIT RATING AND THE SIZABLE YIELD SPREAD OVER COMPARABLE TREASURY NOTES FIDELITY WAS ONE OF THE BIGGEST BUYERS OF THE ISSUE SAID MR CITRONE FIDELITY PURCHASED ABOUT 10 OR 100 MILLION OF THE ISSUE FOR VARIOUS FUNDS RANGING FROM THOSE SPECIALIZING IN JUNK BONDS TO OTHERS CONCENTRATING ON INVESTMENTGRADE CORPORATE BONDS INVESTORS DIDN'T SEEM CONCERNED THAT MEXICAN GOVERNMENT DEBT WHICH WOULD THEORETICALLY BE LESS RISKY THAN MEXICAN CORPORATE DEBT IS NOT GIVEN INVESTMENTGRADE RATINGS BY S&P AND MOODY'S I THINK IT'S VERY IMPORTANT THAT INVESTORS WERE WILLING TO BUY THE DEBT WITHOUT INVESTMENTGRADE RATINGS FROM THE TWO AGENCIES FOR EITHER MEXICO OR THE COMPANY SAID MR CITRONE IT SHOWS YOU THAT INVESTORS BELIEVE THE COUNTRY WILL EVENTUALLY BE CONSIDERED INVESTMENTGRADE WHETHER OR NOT THE NORTH AMERICAN FREE TRADE AGREEMENT GETS APPROVED HE ADDED ACCORDING TO MR PAPPAYLIOU OF GT CAPITAL THERE HAS BEEN A FEEDING FRENZY IN THE MEXICAN MARKET FOR CORPORATE AND GOVERNMENT DEBT PAPER SINCE THE BEGINNING OF THE YEAR LARGER ISSUES HAVE CONTRIBUTED TO THE BUYING FRENZY BECAUSE THEY ARE EASIER TO BUY AND SELL A LOT OF NEW MONEY IS BEING POURED INTO THE MEXICAN MARKET BY PENSION FUNDS AND OTHER NONTRADITIONAL BUYERS OF THIRD WORLD DEBT HE SAID THE STRENGTH OF DEMAND IS EXTRAORDINARY SAID MR PAPPAYLIOU WHEN ONE CONSIDERS THAT NAFTA NEGOTIATIONS ARE LOOKING DOWNRIGHT PRECARIOUS THESE DAYS A TELEVISION NEWS REPORT SUGGESTING A GREATER WILLINGNESS WITHIN THE FEDERAL RESERVE TO ADOPT A TILT TOWARD RAISING RATES UNSETTLED THE TREASURY MARKET YESTERDAY WITH SHORTTERM SECURITIES ENDING WITH SIZABLE LOSSES WHILE IT WAS ALREADY WIDELY BELIEVED THAT THE FEDERAL OPEN MARKET COMMITTEE THE FED'S POLICYMAKING ARM LAST WEEK VOTED TO ADOPT A BIAS TOWARD TIGHTENING MONETARY POLICY A REPORT YESTERDAY ON THE CNBC FINANCIAL NEWS NETWORK PROVIDED NEW DETAILS QUOTING AN UNIDENTIFIED HIGHLY PLACED FED OFFICIAL CNBC REPORTED THAT THE DECISION TO TILT POLICY TOWARD POSSIBLY RAISING RATES WAS NEARLY UNANIMOUS OF THE 12 VOTING FOMC MEMBERS 10 SUPPORTED THE BIAS FOR TIGHTENING ONE VOTED FOR AN IMMEDIATE TIGHTENING AND ONLY ONE MEMBER WANTED TO LEAVE POLICY COMPLETELY NEUTRAL ACCORDING TO THE CNBC REPORT SUCH SOLID SUPPORT FOR A TIGHTENING BIAS SUPRISED TRADERS WHO HAD EXPECTED A GREATER RELUCTANCE BY THE FED TOWARD POSSIBLY RAISING RATES THE REPORT WAS INTERPRETED BY DEALERS AS MEANING THAT THERE WAS A GREATER CHANCE THE FED COULD TIGHTEN IF INFLATION PRESSURES DON'T ABATE THE CNBC STORY ERASED A POSITIVE TONE THAT HAD CARRIED OVER FROM WEDNESDAY INTO EARLY YESTERDAY EVERYTHING WAS PEACHYKEEN UNTIL YOU GOT THE CNBC REPORT SAID MARCELLO FRUSTACI A TRADER AT DAIWA SECURITIES AMERICA INC THE TREASURY MARKET'S RESPONSE TO THE CNBC REPORT WAS SWIFT AND HARSH WITH SHORTTERM SECURITIES TAKING A SEVERE POUNDING AND THEN MAINTAINING THOSE LOSSES THROUGH THE END OF TRADING LONGERTERM SECURITIES WERE HAVING THEIR OWN PROBLEMS AS THE DOLLAR CONTINUED ITS RECENT DECLINE TO NEW RECORD LOWS AGAINST THE YEN BUT BY MIDAFTERNOON THE LONG END WAS ABLE TO REGAIN SOME ITS FOOTING AS PRESIDENT CLINTON'S DEFICIT REDUCTION PLAN BEGAN TO ADVANCE THROUGH CONGRESS AND AS REPORTED FED INTERVENTION IN SUPPORT OF THE DOLLAR HELPED THE US CURRENCY STABILIZE THE FED REPORTED ITS WIDELY WATCHED M2 MONEYSUPPLY AGGREGATE ROSE 24 BILLION IN THE WEEK ENDED MAY 17 THAT PUTS THE M2 GROWTH RATE AT 05 FROM THE FOURTHQUARTER BASE OF LAST YEAR FAR BELOW THE FED'S TARGET OF 2 TO 6 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 MEANWHILE THE TREASURY SOLD 1476 BILLION OF ONEYEAR BILLS AT AN AVERAGE DISCOUNT RATE OF 340 HERE ARE THE RESULTS OF THAT SALE RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED JUNE 3 AND MATURE JUNE 2 1994 PRICES OF INVESTMENTGRADE CORPORATE ISSUES ENDED FLAT TO 1/8 POINT LOWER IN GENERALLY LIGHT ACTIVITY WHILE JUNK BONDS GAINED 1/8 POINT AMONG SPECIFIC JUNK ISSUES SOME BONDS OF RH MACY & CO POSTED MODEST ADVANCES AFTER THE TROUBLED DEPARTMENT STORE RETAILER PRESENTED A REVISED BUSINESS PLAN THAT CALLED FOR AGGRESSIVE COST AND EXPENSE REDUCTIONS YESTERDAY'S SUPRISINGLY BRISK NEWISSUE MARKET INCLUDED THE FIRST OFFERING SINCE 1984 BY PHARMACEUTICAL CONCERN BRISTOLMYERS SQUIBB CO ONE OF FEW INDUSTRIALS IN RECENT YEARS TO HAVE RETAINED ITS COVETED TRIPLEA CREDIT RATING INVESTMENT BANKERS SAID PHARMACEUTICALS MIGHT ISSUE MORE DEBT THIS YEAR BECAUSE THEIR STOCK PRICES HAVE ERODED RECENTLY IN THE WAKE OF THE CLINTON ADMINISTRATION'S PROPOSALS TO PLACE MANDATORY PRICE CONTROLS ON DRUG FIRMS THE SESSION'S 27 BILLION TALLY ALSO INCLUDED MORE THAN 825 MILLION OF NEW JUNK BONDS AMONG THEM WAS AN ISSUE BY PILGRIM'S PRIDE CORP ONE OF THE NATION'S LARGEST POULTRY PRODUCERS THAT ISSUE WAS RATED SINGLEB3 BY MOODY'S AND TRIPLECPLUS BY S&P FEW RECENT NEW JUNK ISSUES HAVE BEEN RATED THIS LOW DEALERS SAID WHICH COULD BE SEEN AS A MEASURE OF THE HUGE DEMAND FOR HIGHYIELD DEBT PRICES OF MUNICIPAL BONDS ENDED GENERALLY STEADY TO 1/4 POINT HIGHER POSTING GAINS FOR THE FOURTH CONSECUTIVE TRADING DAY WHILE THE MARKET'S STRENGTH EARLIER THIS WEEK WAS TREASURYBOND RELATED YESTERDAY'S FIRMNESS SEEMED TO BE TIED TO THE HOUSE OF REPRESENTATIVES' COMING VOTE ON PRESIDENT CLINTON'S BUDGETCUTTING LEGISLATION SOME MUNI SPECIALISTS SAY RENEWED TALK ABOUT THE FEDERAL INCOMETAX INCREASES INCLUDED IN THE ECONOMIC PACKAGE HAS HELPED ENCOURAGE BUYING OF TAXEXEMPT ISSUES SAID A NEW YORK TRADING MANAGER AMONG SECONDARY ISSUES CHICAGO'S 560 REVENUE REFUNDING BONDS OF 2014 FOR O'HARE INTERNATIONAL AIRPORT FINISHED 1/4 POINT HIGHER AT 95 1/4 TO YIELD 596 THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S 570 REVENUE REFUNDING BONDS OF 2017 FOR NUCLEAR PROJECT NO 1 ENDED STEADY AT 96 3/4 TO YIELD 594 IN THE PRIMARY MARKET NO LARGE OFFERINGS WERE PRICED HOWEVER THE PRICING CALENDAR FOR NEXT WEEK IS RATHER LENGTHY THE TWO LARGEST OFFERINGS CURRENTLY LISTED ARE THE NEW YORK STATE DORMITORY AUTHORITY'S 800 MILLION OF REFUNDING REVENUE BONDS AND THE PUERTO RICO PUBLIC BUILDINGS AUTHORITY'S 515 MILLION OF SERIES L AND M BONDS GOLDMAN SACHS & CO IS THE MANAGING UNDERWRITER FOR THE DORMITORY ISSUE AND FIRST BOSTON CORP IS THE LEAD UNDERWRITER FOR PUERTO RICO'S BONDS PRICES OF MORTGAGE SECURITIES ENDED LITTLE CHANGED BEFORE THE SESSION BEGAN THE MORTGAGE BANKERS ASSOCIATION REPORTED ITS REFINANCING INDEX DECLINED TO 9219 IN THE WEEK ENDED MAY 21 FROM A REVISED 9412 THE PREVIOUS WEEK IN OTHER NEWS FEDERAL HOME LOAN MORTGAGE CORP REPORTED THAT ITS AVERAGE RATE FOR 30YEAR FIXEDRATE MORTGAGES DROPPED TO 75 FROM 752 LAST WEEK IN THE PRIMARY MARKET FREDDIE MAC INCREASED A REAL ESTATE MORTGAGE INVESTMENT CONDUIT SERIES 1544 BY 100 MILLION TO 400 MILLION IN SECONDARY TRADING OF CURRENT COUPON MORTGAGE SECURITIES GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 SECURITIES FOR JUNE DELIVERY ENDED 2/32 LOWER AT 100 3/32 FREDDIE MAC GOLD ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED UNCHANGED AT 100 14/32 AND 100 8/32 RESPECTIVELY TRADERS AND INVESTORS WILL PROBABLY BE CONTENT TO BE ON THE SIDELINES UNTIL AFTER MEMORIAL DAY ON TUESDAY FREDDIE MAC WILL RELEASE ITS MIDAPRIL TO MIDMAY PREPAYMENT FIGURES 9305280042 930528 WHO'S NEWS INNOVET INC SELECTS JESSE W HOUDESHELL FOR CHIEF EXECUTIVE WEST PALM BEACH FLA INNOVET INC SAID JESSE W HOUDESHELL PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED CHIEF EXECUTIVE OFFICER OF THE MAKER OF ANIMAL HEALTH AND AGRICULTURAL PRODUCTS MR HOUDESHELL 59 YEARS OLD SUCCEEDS DAVID MYERS 57 WHO IS STEPPING DOWN AS CHIEF EXECUTIVE TO PURSUE OTHER BUSINESS INTERESTS THE COMPANY SAID MR MYERS REMAINS CHAIRMAN THE CHIEF OPERATING OFFICER'S POST WILL REMAIN VACANT UNTIL A SUCCESSOR CAN BE NAMED THE COMPANY ALSO NAMED TWO NEW DIRECTORS EXPANDING THE BOARD TO NINE MEMBERS THEY ARE HOWARD THOMAS 56 PRESIDENT OF CAMBRIDGE VETERINARY SCIENCES IN GREAT BRITAIN AND SCOTT P CIELEWICH 42 INNOVET'S CHIEF FINANCIAL OFFICER MR CIELEWICH WAS NAMED TO THE ADDITIONAL POST OF EXECUTIVE VICE PRESIDENT ROLAND M HENDRICKSON A DIRECTOR WAS NAMED VICE CHAIRMAN A NEW POST MR HENDRICKSON 70 IS PRESIDENT OF WALT MONTGOMERY ASSOCIATES AN INDIANAPOLIS CONSULTING FIRM THE COMPANY ALSO NAMED TWO NEW VICE PRESIDENTS DANIEL R ANSLEY 48 PRESIDENT OF THE DRA & ASSOCIATES UNIT WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT SCIENTIFIC AFFAIRS AND DANIEL E WALKER 40 WAS NAMED VICE PRESIDENT SALES AND MARKETING MR WALKER WAS VICE PRESIDENT OPERATIONS FERMENTA ANIMAL HEALTH CO KANSAS CITY 9305280041 930528 GREAT GAME '93 IRAN TRIES TO SUBVERT OILRICH AZERBAIJAN AND SO FAR IS FAILING IT THROWS MULLAHS AND MONEY INTO THE FRAY BUT AZERIS BOAST OF LINKS TO TURKEY THE COMPLEX PIPELINE PUZZLE BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL BAKU AZERBAIJAN IN THE PAST YEAR AS GOVERNMENTS FROM TURKEY TO ALGERIA HAVE COMPLAINED OF GROWING IRANIAN SUPPORT FOR ISLAMIC RADICALS IRAN HAS BEEN QUIETLY PRESSING HERE ITS MOST AGGRESSIVE SUBVERSION CAMPAIGN OF ALL AND LOSING EVERY FEW WEEKS ANOTHER VANLOAD OF IRANIAN MULLAHS PULLS UP TO THE MASHDAGA MOSQUE ONE OF THE FEW RELIGIOUS BUILDINGS TO SURVIVE COMMUNISM IN THIS FORMER SOVIET REPUBLIC THE DRILL IS SIMPLE THE BEARDED CLERICS TOTING RELIGIOUS BOOKS AND RUBLES SPONSOR A FEAST THEY PREACH A LITTLE READ SOME POETRY DISTRIBUTE IRANIAN SCHOLARSHIP APPLICATIONS AND RECALL HOW THE AYATOLLAH RUHOLLAH KHOMEINI UNITED THE FAITHFUL AGAINST THE SHAH WHEN THE MULLAHS DRIVE OFF THE FAITHFUL OF MASHDAGA PLAY A GAME OF THEIR OWN NAME THE STOOGE I CAN ALWAYS SPOT THE GOVERNMENT AGENTS THEY'RE THE ONES WHO USE THE KORAN TO TALK POLITICS SAYS HAJI ASADULLA MASHDAGA'S IMAM OR PRAYER LEADER IN THE 19TH CENTURY THIS WAS CALLED THE GREAT GAME THE RIVALRY OF WITS AND ARMIES PLAYED OUT ACROSS THE BELLY OF ASIA BY THE RUSSIAN AND BRITISH EMPIRES SINCE THE SOVIET UNION'S COLLAPSE EVANGELISTS OF EVERY STRIPE HAVE RETURNED TO CENTRAL ASIA AMERICAN OIL EXECUTIVES ARE HERE SO ARE BAPTIST MISSIONARIES SAUDI ARABIA SENDS KORANS ISRAEL HELPS GROW FOOD BUT HERE IN AZERBAIJAN THE MAIN CLASH IS BETWEEN THEOCRATIC IRAN AND SECULAR TURKEY VYING FOR THIS JEWEL OF THE CAUCASUS A DEMOCRATIC REPUBLIC LINKED ETHNICALLY TO BOTH TURKS AND PERSIANS AND SITTING ON A SEA OF OIL AT THE CROSSROADS OF THE CONTINENT FOR WESTERN GOVERNMENTS IRAN'S FAILURE TO GAIN INFLUENCE HERE DESPITE INTENSIVE EFFORTS AND A COMMON SHIITE MUSLIM HERITAGE MARKS AN IMPORTANT STEP IN CONTAINING FUNDAMENTALIST IRAN AN EMERGING FOREIGNPOLICY PRIORITY OF A CLINTON ADMINISTRATION WORRIED ABOUT THE COUNTRY'S HOSTILITY TOWARD THE WEST FOR WESTERN OIL COMPANIES IT FACILITATES ACCESS TO VAST OIL RESERVES IN THE CASPIAN SEA AND FOR IRAN ITSELF IT MARKS DANGER IN RECENT CENTURIES COMPETING EMPIRES HAVE DICED AND SLICED AZERBAIJAN A MAINESIZED COUNTRY ON THE WESTERN CASPIAN COAST AS A RESULT THE NEWLY INDEPENDENT REPUBLIC WITH A POPULATION OF SEVEN MILLION NOW IS THE LONE FLAG BEARER FOR SOME 20 MILLION FELLOW AZERIS LIVING IN IRAN TO IRAN'S RELIGIOUS LEADERS THIS SPECTER OF A WESTERNIZED OILRICH DEMOCRACY BLOOMING ON THEIR NORTHERN BORDER AND INSPIRING DREAMS OF GERMANSTYLE UNIFICATION AMONG ONETHIRD OF IRAN'S POPULATION IS APPARENTLY A NIGHTMARE SO THEY ARE FIGHTING FREEDOM WITH FUNDAMENTALISM DON'T FORGET A TURKISH OFFICIAL SAYS PERSIANS INVENTED CHESS IRAN'S PAWNS SQUARE OFF IN A STOREFRONT OFFICE NEAR THE OLD KGB HEADQUARTERS IN DOWNTOWN BAKU INSIDE BEARDED MEN POUND ON MANUAL TYPEWRITERS PRODUCING ISLAMIC WORLD THE DAILY NEWSPAPER OF THE ISLAMIC PARTY OF AZERBAIJAN A CARTOONIST IS SKETCHING A CARICATURE OF THE STATUE OF LIBERTY CLUTCHING A COPY OF SALMAN RUSHDIE'S SATANIC VERSES THE ISLAMIC PARTY WAS FOUNDED UNDERGROUND IN 1975 IN THE LATE 1980S AS GLASNOST IGNITED AZERBAIJANI NATIONALISM PARTY LEADERS OPENED DIRECT TIES WITH TEHRAN AT FIRST IRAN'S HELP WAS MOSTLY RELIGIOUS MONEY FOR MOSQUES KORANS MUSLIM PILGRIMAGES AND CIRCUITRIDING MULLAHS BUT IN THE PAST YEAR THE BENEVOLENCE HAS WIDENED TO INCLUDE SCHOOLS AND SCHOLARSHIPS AND ALLEGEDLY THE ISLAMIC PARTY'S CAMPAIGN TO TAKE POWER IN ELECTIONS SCHEDULED THIS SUMMER HAJIWAGIF KASIMOGLU THE PARTY'S CHAIRMAN DENIES THAT IT RECEIVES IRANIAN AID BUT RELIGIOUS AND POLITICAL OFFICIALS IN BAKU SOME WITH CLOSE TIES TO AZERBAIJANI INTELLIGENCE SAY THE PARTY HAS BECOME A CREATURE OF THE IRANIAN EMBASSY HERE IN A CORNER OF MR KASIMOGLU'S MAPLINED OFFICE A NEW KONICA COPIER SPARKLES IN THIS RUBLERAVAGED CITY LIKE A DIAMOND IN A COAL SHAFT CONTRIBUTIONS HE CLAIMS ARE POURING IN FROM SOME 200 ISLAMIC PARTY CHAPTERS AROUND AZERBAIJAN THE REASON AZERIS ARE FED UP WITH TURKISH COMMERCIALISM AND IMMORALITY HE SAYS THEY'RE ANGRY AT THE NATIONALIST GOVERNMENT FOR DECLARING TURKISH THE NATIONAL LANGUAGE INSTEAD OF THE AZERI TURKISH DIALECT AND FOR OFFICIALLY ADOPTING THE LATIN ALPHABET TO REPLACE RUSSIA'S CYRILLIC INSTEAD OF THE ARABIC ALPHABET OF IRAN AND THE KORAN A NATION THAT DOES NOT UNDERSTAND ITS PAST WILL NOT REALIZE ITS FUTURE THE ISLAMIC LEADER SAYS BUT IRAN'S OBSESSION WITH THE AMERICAN GREAT SATAN DRAWS ONLY CONTEMPT IN AZERBAIJAN WHERE DOZENS OF YOUNG MEN HAVE BEEN DYING EVERY WEEK FIGHTING RUSSIANBACKED ARMENIA LIKEWISE IN THIS EUROPEANIZED CAPITAL THE TURBANED HEADS OF VISITING IRANIAN MULLAHS LOOK LIKE MARTIANS SEVENTY YEARS OF SOVIET ATHEISM AND 170 YEARS OF RUSSIAN CONTROL HAVE NEARLY WIPED OUT AZERBAIJAN'S MUSLIM MORES AT THE BIG INTOURIST HOTEL HERE IRANIAN AZERI TOURISTS DRINK AND GAMBLE LATE INTO THE NIGHT THE HOTEL RESTAURANT OFFERS A BURLESQUE SHOW THAT WOULD BE PUNISHABLE BY FLOGGING OR DEATH IN IRAN NOT ONLY DO MOST AZERI WOMEN NOT WEAR MUSLIM VEILS BUT BEHIND A DESK IN A BAKU BANK TWO WOMEN CASHIERS SHARE THE LAP OF THEIR MALE BOSS AND A ROUND OF LUNCHTIME BRANDY WE'RE NOT LIKE IRANIANS ONE SCOFFS WE'RE AZERIS AZERIS DESCENDED FROM NOMADIC TURKIC TRIBES OF CENTRAL ASIA THAT MIGRATED WEST A MILLENNIUM AGO TO WHAT IS NOW TURKEY AND SETTLED ALONG THE WAY THE COMMON ETHNIC ROOTS GIVE TURKEY A BIG LEAD IN THE HUSTLE FOR INFLUENCE HERE TURKEY HAS BECOME THE GODFATHER OF YOUNG AZERBAIJAN AND ITS ROLE MODEL FOR SECULAR DEMOCRACY THE PALATIAL TURKISH EMBASSY IS THE MOST IMPORTANT GOVERNMENT BUILDING IN TOWN DIPLOMATS QUIP FROM IT CHECKS ARE ISSUED TO BUILD ROADS AND SCHOOLS TO DISPATCH TURKISH TEACHERS AND IMAMS INTO THE COUNTRYSIDE AND TO SUPPORT 250 MILLION OF TURKISH TRADE CREDITS FOR AZERBAIJAN TURKISH TV AND NEWSPAPERS DOMINATE THE LOCAL MEDIA IN BAKU'S NEW ANATOLIAN HIGH SCHOOL STUDENTS PLEDGE ALLEGIANCE TO THE TURKISH FLAG ALONGSIDE AZERBAIJAN'S WE CARRY OUR TURKISHNESS IN OUR HEARTS IN EVERYTHING WE DO RHAPSODIZES SABIR SAGE PRESIDENT OF A SIGNMAKING COMPANY THAT IS BUILDING A NEW FIVESTORY BUILDING WITH ITS PROFITS FROM ALPHABET CONVERSION WE WERE AZERI TURKS LONG BEFORE WE WERE MUSLIMS AMERICANS ARE HERE TOO IN A HOTEL ROOM ON THE CASPIAN SHORE HALFADOZEN PENNZOIL CO ENGINEERS HASH OUT DETAILS OF A BIG NATURALGAS COMPRESSOR THAT THE COMPANY IS BUILDING OFFSHORE HOUSTONBASED PENNZOIL AND A EUROPEAN PARTNER ARE BETTING MILLIONS OF DOLLARS ON THE GAS PROJECT CURRENTLY PENNZOIL'S BIGGEST OVERSEAS VENTURE THE GAS IS TO REPLACE AZERBAIJAN'S GAS IMPORTS FROM IRAN PENNZOIL AMOCO CORP AND BRITISH PETROLEUM CO AT THE REQUEST OF AZERBAIJAN ARE ALSO LOOKING AT POSSIBLY COMBINING THEIR OILEXPLORATION EFFORTS IN THE CASPIAN SEA TO EXPLOIT AN ESTIMATED FIVE BILLION BARRELS OF OIL TO EXPORT AZERBAIJANI OIL A COMMITTEE OF ENGINEERS LED BY MCDERMOTT INTERNATIONAL INC OF NEW ORLEANS IS STUDYING ROUTES FOR A 15 BILLION PIPELINE TO BE BUILT FROM BAKU TO A PORT ON THE MEDITERRANEAN OR BLACK SEA BUT THE POLITICAL RIVALRY BETWEEN TURKEY AND IRAN IS CAUSING DIFFICULTIES AZERBAIJAN FAVORS A PIPELINE THAT PASSES FOR A SHORT DISTANCE IN IRAN THEREBY SKIRTING ITS ENEMY ARMENIA ON ITS WAY INTO TURKEY AND A TURKISH PORT ON THE MEDITERRANEAN THE IRANIANS HAVE DIFFERENT IDEAS IN A BLITZ OF PIPELINE DIPLOMACY IRANIAN FOREIGN MINISTER ALI AKBAR VELAYATI HAS BEEN TOURING CENTRAL ASIA'S LANDLOCKED CAPITALS TRYING TO NAIL DOWN AGREEMENTS FOR EXPORTING THE OIL GAS AND OTHER COMMODITIES THROUGH IRANIAN PORTS TO LURE THIS BUSINESS IRAN IS SPENDING 15 BILLION TO COMPLETE A RAILROAD BETWEEN THE CASPIAN SEA AND PERSIAN GULF AND IS TALKING TO EUROPEAN GOVERNMENTS ABOUT FINANCING SEVERAL NEW PIPELINES OUR PRELIMINARY ESTIMATE IS FOR 10 BILLION A YEAR OF TRADE WITH THE FORMER SOVIET REPUBLICS ONCE THE NEW FACILITIES ARE BUILT SAYS MOHSEN NOURBAKHSH IRAN'S FINANCE MINISTER IRAN EXPLOITING ITS GEOGRAPHIC ADVANTAGES DOESN'T EVEN ALLOW TURKISH TRUCKS TO CROSS ITS TERRITORY ON THEIR WAY TO CENTRAL ASIA AND THAT CASTS DOUBT ON WHETHER IT WILL EVER AGREE TO ACCOMMODATE AN AZERBAIJANTURKEY PIPELINE IN ADDITION THE CHIEF OF PENNZOIL'S INTERNATIONAL OPERATIONS AK ANDY GUPTA SAYS US EMBARGO LAWS BAR AMERICAN COMPANIES FROM SHIPPING OIL THROUGH IRAN AND FROM OWNING STAKES IN IRANIAN PIPELINES ALTHOUGH AMOCO'S TOP EXECUTIVE IN AZERBAIJAN CE EDDIE PRUITT JR INSISTS THAT AMOCO WANTS EQUITY IN WHATEVER PIPELINE IS BUILT TO GUARANTEE ACCESS THE PIPELINE PUZZLE HAS INTENSIFIED INTERNATIONAL EFFORTS TO END AZERBAIJAN'S ETHNIC WAR WITH CHRISTIAN ARMENIA ON WEDNESDAY ARMENIA AND AZERBAIJAN AGREED TO A PEACE PLAN NEGOTIATED BY TURKEY RUSSIA AND THE US THAT WOULD END THEIR FIVEYEAROLD WAR OVER AN ARMENIANPOPULATED ENCLAVE CALLED NAGORNOKARABAKH INSIDE AZERBAIJAN IF THE FRAGILE PEACE HOLDS ARMENIAN FORCES WILL WITHDRAW FROM LARGE AREAS OF AZERBAIJANI TERRITORY THAT THEY HAVE OCCUPIED IN EXCHANGE FOR ENDING A PUNISHING ECONOMIC BLOCKADE AGAINST ARMENIA IN TEHRAN ITSELF 60 ETHNIC AZERI OFFICIALS PLAY DOWN FEARS OF ETHNIC UNREST BY IRAN'S AZERI POPULATION WITH THE SHIFTING EMPIRES OVER THE CENTURIES AZERIS INCREASINGLY MIXED WITH PERSIANS NOW THE 20 MILLION SOUTHERN AZERIS AS IRANIAN AZERIS ARE CALLED IN BAKU ARE ASSIMILATED INTO PERSIAN SOCIETY ONLY THEIR TURKIC ACCENTS SET THEM APART FROM FARSISPEAKING IRANIANS BUT THAT HASN'T STOPPED AZERBAIJAN'S NATIONALIST PRESIDENT FROM TRUMPETING HIS VIEW THAT IRAN WILL BE THE NEXT EMPIRE TO COLLAPSE PAVING THE WAY HE SAYS FOR GREATER AZERBAIJAN AT LAST THE RHETORIC GIVES IRAN'S LEADERS FITS WHEN THE SOVIETS FELL THERE WAS PANIC HERE RECALLS AN IRANIAN IN TEHRAN WHO WORKED IN THE FOREIGN MINISTRY AT THE TIME DURING THOSE FIRST DAYS IRANIAN SOLDIERS RESORTED TO GUNFIRE TO KEEP AZERIS DESPERATE TO VISIT THEIR RELATIVES AFTER 70 YEARS OF CLOSED BORDERS FROM POURING INTO IRAN NOW THE AZERBAIJANI BORDER IS ONE OF IRAN'S BUSIEST REFLECTING IRAN'S NEW STRATEGY OF MORAL SUASION IRANIAN AZERIS SAY THE ISLAMIC GOVERNMENT HAS GRADUALLY LOOSENED THE SHAH'S RESTRICTIONS ON TEACHING AND PUBLISHING IN THE AZERI LANGUAGE IN IRAN BUT THE GOVERNMENT REMAINS WORRIED ABOUT AZERI NATIONALISM IT RECENTLY SPLIT THE TWO PROVINCES OF IRANIAN AZERBAIJAN INTO THREE SETTING BACK DREAMS OF ETHNIC UNITY AND IT COUNTERED THE FIRST APPEARANCE OF NATIONALIST LEAFLETS IN THE PROVINCIAL CAPITAL OF TABRIZ WITH DENUNCIATIONS IN MOSQUES AND MORE SUBVERSION IN AZERBAIJAN ON THE STEPS OF BAKU'S TAZAPIR MOSQUE NOT LONG AGO THE ISLAMIC PARTY PUMPED UP THE FAITHFUL FOR THE FOURTH ANNIVERSARY OF THE AYATOLLAH KHOMEINI'S DEATH DECREE AGAINST MR RUSHDIE SEVERAL DOZEN PEOPLE HELD UP POSTERS OF THE LATE LEADER AND MUMBLED DEATH TO RUSHDIE DEATH TO BRITAIN DEATH TO AMERICA THE RABBLEROUSING WAS JUST A PARODY OF A REAL IRANIAN RALLY HOWEVER AS THE MULLAHS RAILED AGAINST THE WEST SEVERAL ONLOOKERS SLIPPED OFF TO THE MOSQUE'S OFFICES WHERE NADIR BABAYEV SECRETARY OF THE CAUCASUS MUSLIM BOARD AND A CRITIC OF BOTH TURKISH AND IRANIAN INFLUENCE IN AZERBAIJAN IS DELIRIOUSLY BOMBING RUSSIA BACK TO THE STONE AGE ON A PERSONALCOMPUTER GAME SUMS UP TOFIG GASIMOV AZERBAIJAN'S FOREIGN MINISTER YOU'D BE WISE TO LOOK AT OUR INFLUENCE ON IRAN INSTEAD OF VICE VERSA THE AZERBAIJANI PEOPLE'S INTELLECTUAL LEVEL IS 100 TIMES HIGHER THAN THE MULLAHS THEY SEND UP HERE 9305280038 930528 BUSINESS BRIEF CLEVELANDCLIFFS INC GAIN OF UP TO 29 MILLION SET AS RESULT OF LTV CLAIMS CLEVELANDCLIFFS INC SAID IT WILL RECORD A GAIN OF 24 MILLION TO 29 MILLION OR ABOUT 2 TO 225 A SHARE FROM ITS CLAIMS IN LTV CORP'S BANKRUPTCY PROCEEDINGS THE MINING CONCERN SAID IT WILL DISTRIBUTE TO SHAREHOLDERS A PRETAX DIVIDEND OF 3 TO 350 A SHARE 1 IN CASH AND THE REST IN STOCK CLEVELANDCLIFFS BASED IN CLEVELAND WHICH DOESN'T YET KNOW WHEN IT WILL RECORD THE GAIN SAID IT WILL RETAIN 600000 NEW LTV SHARES STEELMAKER LTV WHICH WON COURT CONFIRMATION LATE WEDNESDAY OF ITS CHAPTER 11 BANKRUPTCY REORGANIZATION WILL EMERGE FROM COURT PROTECTION IN JUNE LTV'S PLAN OF REORGANIZATION RESOLVES MORE THAN 3 BILLION OF UNFUNDED PENSION LIABILITIES AND 6 BILLION OF CLAIMS 9305280037 930528 WHO'S NEWS SEGA PICKS IRIMAJIRI EXHONDA EXECUTIVE AS ITS VICE PRESIDENT TOKYO KYODO SEGA ENTERPRISES LTD THE JAPANESE VIDEOGAME MAKER APPOINTED AS ITS VICE PRESIDENT A FORMER HONDA MOTOR CO EXECUTIVE KNOWN FOR HIS ROLE IN MAKING HONDA'S NORTH AMERICAN OPERATIONS SUCCESSFUL THE APPOINTMENT OF SHOICHIRO IRIMAJIRI FORMER EXECUTIVE VICE PRESIDENT OF HONDA MOTOR IS SUBJECT TO APPROVAL AT A SHARE HOLDERS' MEETING JUNE 29 SEGA SAID MR IRIMAJIRI RESIGNED SUDDENLY FROM HONDA IN MARCH 1992 CITING ILL HEALTH HE WAS REGARDED AS ONE OF HONDA'S MOST ABLE EXECUTIVES AND WAS WIDELY CONSIDERED TO BE NEXT IN LINE FOR PRESIDENT OF THE FIRM SEGA HAD HELD TALKS TO RECRUIT MR IRIMAJIRI TO HELP BEEF UP THE COMPANY'S OVERSEAS OPERATIONS MR IRIMAJIRI'S HEALTH APPARENTLY HAS IMPROVED WHEN HE LEFT HONDA A MOVE THAT WAS A HUGE BLOW TO THE AUTO MAKER MANY SAID HE SUFFERED FROM EXHAUSTION 9305280036 930528 WHAT'S NEWS WORLDWIDE CLINTON DEFENDED HIS PRESIDENCY DURING A WHITE HOUSE TOWN MEETING THE PRESIDENT BEMOANED ALL THE ATTENTION BEING PAID TO HIS HAIRCUT AND HOLLYWOOD FRIENDSHIPS TELLING 200 OUTOFTOWN VISITORS THAT SUCH THINGS DON'T AMOUNT TO A HILL OF BEANS CLINTON ASSERTED THAT HIS ADMINISTRATION WAS DOING PRETTY WELL BUT HAS DONE A LOUSY JOB OF BEING ABLE TO CUT THROUGH THE FOG THAT ALWAYS SURROUNDS THIS TOWN AND COMMUNICATE THAT HE SAID THE CONGRESSIONAL BATTLE OVER HIS BUDGET BILL WAS THE TOUGHEST THING HE'D FACE AND THAT HE EXPECTED A MUCH MORE OPEN PROCESS ON HEALTH CARE THE PRESIDENT SAID HE IS CLOSE TO A COMPROMISE ON HOMOSEXUALS IN THE MILITARY THAT COULD ALLOW THEM TO SERVE AS LONG AS THEY REMAIN SILENT ABOUT THEIR SEXUAL ORIENTATION WHILE ON DUTY BRITAIN'S PRIME MINISTER MAJOR FIRED NORMAN LAMONT CHANCELLOR OF THE EXCHEQUER AND ONE OF MAJOR'S CLOEST ALLIES FROM THE TREASURY HOME SECRETARY KENNETH CLARKE WILL SUCCEED LAMONT WHO HAD BEEN UNDER FIRE FOR THE NATION'S 2 1/2YEAROLD RECESSION A BOMB IN FLORENCE ITALY KILLED FIVE PEOPLE AND SERIOUSLY DAMAGED PARTS OF THE UFFIZI GALLERY THE COUNTRY'S MOST PRESTIGIOUS ART MUSEUM ITALY'S INTERIOR MINISTER SAID THE BLAST HAD THE SIGNS OF A MAFIATERRORIST ATTACK CANADA'S HOUSE OF COMMONS APPROVED AS PREDICTED LEGISLATION TO IMPLEMENT THE NORTH AMERICAN FREE TRADE AGREEMENT ON JAN 1 THE VOTE WAS 140124 ON THE AGREEMENT WHICH IS AIMED AT EVENTUALLY ELIMINATING ALL TRADE BARRIERS INVOLVING THE US CANADA AND MEXICO THE BILL WAS SENT TO THE SENATE WHERE APPROVAL IS EXPECTED CLINTON SAID HE INTENDS TO RENEW BEIJING'S TRADE STATUS FOR ONE YEAR TO SUPPORT MODERNIZATION IN CHINA THE WHITE HOUSE IS EXPECTED TO ANNOUNCE TODAY THAT THE US FOR THE FIRST TIME WILL SAY THAT EXTENDING CHINA'S TRADE STATUS BEYOND ANOTHER YEAR DEPENDS ON HUMANRIGHTS CONDITIONS THE US FROZE MORE THAN 30 MILLION IN AID TO GUATEMALA IN REACTION TO PRESIDENT SERRANO'S SEIZURE OF NEARDICTATORIAL POWERS TUESDAY IN GUATEMALA CITY ARMORED VEHICLES FLANKED BY SOLDIERS BROKE UP THE FIRST PROTEST AGAINST THE PRESIDENT'S SUSPENSION OF THE CONSTITUTION THE GUATEMALAN CONGRESS URGED THE MILITARY TO DEPOSE SERRANO FEDERAL FISH REGULATORS ISSUED A RULING THAT CALLS FOR FEW CHANGES IN THE WAY DAMS OPERATE ON THE COLUMBIA AND SNAKE RIVERS IN THE PACIFIC NORTHWEST THE RULING WHICH SURPRISED ENVIRONMENTALISTS MEANS THAT MILLIONS OF ENDANGERED SALMON WILL BE KILLED DURING MIGRATIONS THIS YEAR SLAUGHTERHOUSE INSPECTIONS TURNED UP NUMEROUS EXAMPLES OF UNSANITARY CONDITIONS NATIONWIDE AGRICULTURE SECRETARY ESPY ANNOUNCED THE SURPRISE INSPECTIONS OF 90 SLAUGHTERHOUSES FOUND 30 CASES WHERE THE PROBLEMS WERE SO SERIOUS THAT THE DEPARTMENT TEMPORARILY HAD TO SHUT THE PLANTS KHMER ROUGE GUERRILLAS FIRED ON A POLLING STATION IN NORTHWESTERN CAMBODIA WOUNDING FOUR PEOPLE AND FORCING A UN TEAM TO FLEE A UN PEACEKEEPER WAS WOUNDED IN THE ATTACK WHICH CAME A DAY BEFORE THE END OF THE SIXDAY VOTE A NAVY SAILOR WAS SENTENCED TO LIFE IN PRISON FOR THE SLAYING OF A HOMOSEXUAL SHIPMATE IN OCTOBER TERRY HELVEY 21 WAS SENTENCED BY A US MILITARY JURY IN JAPAN FOR BEATING ALLEN SCHINDLER TO DEATH IN A PUBLIC RESTROOM THE SENTENCE WHICH CAME AFTER A FOURDAY TRIAL WAS THE MAXIMUM AVAILABLE TO THE EIGHTOFFICER JURY UN OFFICIALS DEPLORED CONDITIONS IN SREBRENICA WHICH WAS DECLARED A SAFE AREA FOR BOSNIA'S MUSLIMS LAST MONTH THE OFFICIALS SAID THE TOWN IS SO LACKING IN SHELTER AND SANITATION IT WOULDN'T QUALIFY AS A REFUGEE CAMP ANYWHERE ELSE ISRAEL FREED 250 PALESTINIAN DETAINEES IN HONOR OF A MUSLIM HOLIDAY NEXT WEEK BUT ARABS LIVING IN THE OCCUPIED GAZA STRIP SAID THAT THE ARMY SIMULTANEOUSLY TIGHTENED A BAN ON ENTRY INTO ISRAEL JURY DELIBERATIONS BEGAN IN THE RETRIAL OF A MIAMI POLICE OFFICER WHO SHOT A SPEEDING BLACK MOTORCYCLIST IGNITING A 1989 RACE RIOT THE JURY IN THE ORLANDO FLA MANSLAUGHTER RETRIAL WILL DECIDE IF THE OFFICER WILLIAM LOZANO 33 WAS CRIMINALLY NEGLIGENT OR ACTED IN SELF DEFENSE HIS ORIGINAL CONVICTION WAS OVERTURNED IN 1991 9305280035 930528 EUROPEAN GROUP HAS SUGGESTIONS FOR US AIRLINES AMERICAN PANEL EXAMINES AIR INDUSTRY DRAWING ATTENTION FROM ABROAD BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS SWISSAIR PRESIDENT OTTO LOEPFE HAS A WISH LIST FOR THE US GOVERNMENT PANEL NOW EXAMINING THE AIRLINE INDUSTRY MR LOEPFE SAID IN AN INTERVIEW IN BRUSSELS THAT THE US NEEDS TO HAMMER OUT NEW BANKRUPTCY PROTECTION LAWS REVISE ITS AVIATION TREATIES AND CREATE NEW RULES FOR COMPUTER RESERVATION SYSTEMS AS PRESIDENT OF THE ASSOCIATION OF EUROPEAN AIRLINES OR AEA MR LOEPFE SPEAKS FOR MORE THAN JUST THE TRADITIONALLY PROFITABLE SWISS CARRIER THE AEA'S 23 MEMBER AIRLINES ARE A WHO'S WHO OF EUROPEAN FLAG CARRIERS INCLUDING AIR FRANCE LUFTHANSA AND BRITISH AIRWAYS WITH MANY OF THE WORLD'S AIRLINES STRUGGLING FROM THREE YEARS OF RED INK MANY IN EUROPE SEE THE US AS THE SOURCE OF MANY OF THE INDUSTRY'S WOES AS A RESULT THE US COMMISSION THAT ON MONDAY BEGAN A 90DAY EXAMINATION OF THE INDUSTRY'S TROUBLES IS VIEWED WITH BOTH FEAR AND HOPE MY WORRY IS THAT IT COULD END UP IN AN AMERICAN POLICY AND NOT A GLOBAL POLICY MR LOEPFE SAID REFERRING TO THE DELIBERATIONS OF THE PANEL APPOINTED JOINTLY BY PRESIDENT CLINTON AND THE CONGRESS AND SINCE OUR INDUSTRY IS A GLOBAL ONE ANYTHING THAT IS DECIDED IN THE US OR IN EUROPE HAS AN EFFECT ON THE WHOLE INDUSTRY NONETHELESS MR LOEPFE SEES AN OPPORTUNITY I THINK IT IS A WISE DECISION TO WATCH THE INDUSTRY WEIGH THE PROS AND CONS OF DEREGULATION IN THE US AND MAKE SOME CORRECTIONS HE SAID THE PRINCIPAL FAULT WITH THE US INDUSTRY HE SAID IS THAT AIRLINES IN CHAPTER 11 PROCEEDINGS ARE ALLOWED TO CONTINUE OPERATING IT'S NOT FAIR THAT AIRLINES IN BANKRUPTCYLAW PROTECTION CAN GO ON FOR YEARS AND BE COMPETITORS WITHOUT THE SAME OBLIGATIONS AS OTHER AIRLINES SAYS MR LOEPFE WHOSE AIRLINE REPORTED A PROFIT IN 1992 FOR THE 42ND STRAIGHT YEAR IT'S A COMMON COMPLAINT EUROPEAN AIRLINES LIKE MANY OF THEIR US COUNTERPARTS BLAME CARRIERS THAT OPERATE WHILE UNDER THE PROTECTION OF A BANKRUPTCY COURT FOR MANY OF THE INDUSTRY'S CURRENT WOES INDUSTRY OFFICIALS SAY SUCH CARRIERS AS TRANS WORLD AIRLINES AMERICA WEST AND UNTIL RECENTLY CONTINENTAL AIRLINES LAUNCHED BRUTAL PRICE WARS THAT BROUGHT DOWN FARES NOT ONLY IN THE US BUT THROUGHOUT THE INDUSTRY BECAUSE THOSE AIRLINES WERE FREE FROM THE OBLIGATION OF PAYING CREDITORS THEY COULD MORE EASILY AFFORD THE LOST REVENUE CAUSED BY A PRICE WAR ALSO HIGH ON MR LOEPFE'S WISH LIST IS A REVIEW OF THE RULES GOVERNING COMPUTER RESERVATION SYSTEMS IN PARTICULAR MR LOEPFE WANTS THE US TO PASS A LAW BARRING AIRLINES THAT OWN RESERVATION SYSTEMS FROM USING THOSE SYSTEMS TO MONITOR SCHEDULES AND BOOKINGS OF THE COMPETITION THE INDUSTRY CALLS THE INSTALLATION OF THE TECHNICAL BARRIER TO SUCH MONITORING DEHOSTING SUCH A LAW WOULD STRIKE DIRECTLY AT SABRE OWNED BY AMERICAN AIRLINES PARENT AMR CORP OTHER MAJOR RESERVATION SYSTEMS SUCH AS AMADEUS AND GALILEO ARE OWNED BY CONSORTIUMS OF AIRLINES AND HAVE BUILTIN TECHNICAL BARRIERS THAT LIMIT OWNERS TO VIEWING ONLY THEIR OWN DATA IN EUROPE WE HAVE DEHOSTED SYSTEMS AND WE ASK FOR THE SAME IN THE US MR LOEPFE SAID IT IS AN UNFAIR INFLUENCE MR LOEPFE WAS IN BRUSSELS ON TUESDAY TO DISCUSS SUCH RULES WITH EUROPEAN COMMUNITY COMMISSION OFFICIALS THE AEA HOPES TO PERSUADE EC OFFICIALS TO BLOCK SABRE FROM USING ITS EUROPEAN TERMINALS TO EXAMINE COMPETITORS' DATA FINALLY MR LOEPFE WANTS A FRESH APPROACH ON SOME BILATERAL AGREEMENTS GOVERNING AVIATION BUT THE AEA PRESIDENT GINGERLY SIDESTEPS AN ISSUE CURRENTLY UNDER CLOSE EXAMINATION BY SEVERAL EUROPEAN GOVERNMENTS FRANCE THE UK AND GERMANY ARE ALL IN THE MIDST OF TALKS WITH THE US ABOUT THEIR AIR TRANSPORT TREATIES THE NETHERLANDS RECENTLY SIGNED A LIBERAL TREATY WITH THE US MEANWHILE THE EC COMMISSION WANTS THE RIGHT TO NEGOTIATE AIR TRANSPORT TREATIES ON BEHALF OF ALL MEMBER STATES WE ARE NOT YET SO FAR AS HAVING A JOINT UNDERSTANDING OR A JOINT POSITION ON THIS QUESTION MR LOEPFE CONCEDED BUT HE WARNED THAT AS EUROPEAN BARRIERS FALL THE AVIATION MARKET INCREASINGLY BECOMES MORE UNIFIED THAT COULD HAVE IMPLICATIONS FOR SUCH ISSUES AS THE RIGHT OF A US AIRLINE TO LAND IN ONE COUNTRY PICK UP PASSENGERS AND FLY TO ANOTHER IN OTHER WORDS MR LOEPFE SAID THE BALANCE OF POWER MAY BE SHIFTING IN FAVOR OF THE EUROPEANS AS THE CONTINENTAL AIR TRANSPORT MARKET INCREASINGLY RESEMBLES THE US MARKET 9305280034 930528 FISH REGULATORS RULING MAY RESULT IN BIG SALMON KILL BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL FISH REGULATORS ISSUED A RULING THAT CALLS FOR FEW CHANGES IN THE WAY DAMS ON THE COLUMBIA AND SNAKE RIVERS ARE OPERATED WHICH MEANS THAT MILLIONS OF ENDANGERED SALMON WILL BE KILLED DURING THEIR MIGRATIONS THIS YEAR THE RULING BY THE NATIONAL MARINE FISHERIES SERVICE SURPRISED ENVIRONMENTALISTS AND IS LIKELY TO FURTHER INFLAME THE FIGHT OVER NORTHWESTERN SALMON SALMON POPULATIONS HAVE PLUNGED IN RECENT YEARS MAINLY BECAUSE THE FISH CAN'T MAKE IT PAST THE HUGE DAMS BUT THE DAMS MOSTLY OPERATED BY THE US CORPS OF ENGINEERS AND THE FEDERALLY CHARTERED BONNEVILLE POWER ADMINISTRATION ARE A KEY COG OF THE REGION'S ECONOMY PROVIDING CHEAP POWER AND IRRIGATION WATER AMONG OTHER THINGS THE DAMS ARE IN OREGON WASHINGTON AND IDAHO UNDER FEDERAL WILDLIFE PROTECTION LAWS THE FISHERIES SERVICE CAN DIRECT DAMS AND OTHER RIVER USERS TO MODIFY THEIR OPERATIONS TO PROTECT ENDANGERED FISH AND THEIR HABITAT HOWEVER IN ITS RULING KNOWN FORMALLY AS A BIOLOGICAL OPINION THE FISHERIES SERVICE NOTED THAT HEAVY SNOWS THIS YEAR HAVE INDEED INCREASED FLOWS IN THE RIVERS WHICH MAKES IT EASIER FOR SALMON TO MIGRATE IT RECOMMENDED FLOW TARGETS THAT DAM OPERATORS ARE SUPPOSED TO MEET BUT IT DIDN'T REQUIRE THEM TO DO SO ENVIRONMENTALISTS HAD PUSHED THE SERVICE TO ISSUE A SOCALLED JEOPARDY OPINION WHICH WOULD HAVE MEANT THAT THE DAM'S PROPOSED OPERATIONS WERE DEEMED TO THREATEN FISH POPULATIONS THAT WOULD HAVE REQUIRED CORPS OF ENGINEERS AND THE FEDERAL BONNEVILLE POWER ADMINISTRATION WHICH OPERATE MOST OF THE DAMS TO TAKE STEPS TO ENSURE SALMON SURVIVAL THOSE PROBABLY WOULD HAVE INCLUDED MEASURES THAT HAVE SIGNIFICANTLY CUT THE AMOUNT OF WATER AVAILABLE FOR GENERATING ELECTRICITY AND IRRIGATING FARMLAND FOR EXAMPLE THE SERVICE'S RULING IS PATHETIC AND WILL MEAN FURTHER DISASTER FOR SALMON SAID ED CHANEY DIRECTOR OF NORTHWEST RESOURCES ALLIANCE A FISH ADVOCACY GROUP HE AND OTHER ENVIRONMENTALISTS VOWED TO REDOUBLE THEIR LEGAL BATTLE ON BEHALF OF THE SALMON NATIONAL MARINE FISHERIES SERVICE OFFICIALS COULDN'T IMMEDIATELY BE REACHED TO COMMENT 9305280033 930528 WHO'S NEWS UNION CAMP CORP UNION CAMP CORP WAYNE NJ JOHN T HEALD WAS NAMED SENIOR VICE PRESIDENT FOR CONVERTING OPERATIONS AS PART OF A REALIGNMENT OF THIS PAPER AND CHEMICAL COMPANY'S PACKAGING BUSINESS MR HEALD 47 YEARS OLD WAS SUCCEEDED AS VICE PRESIDENT AND GENERAL MANAGER OF THE CONTAINER DIVISION BY DAVID J LEVY 48 WHO HAD HELD THE POSITIONS OF SOUTHERN AND WEST/CENTRAL REGIONAL GENERAL MANAGER TIMOTHY P KENEALLY 46 WAS NAMED TO SUCCEED WA WILLIAMS 58 WHO HAS ANNOUNCED HIS RETIREMENT AS VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S BAG DIVISON EFFECTIVE DEC 31 MR KENEALLY WAS GENERAL MANAGER OF THE INDUSTRIAL/CONSUMER GROUP OF THE BAG DIVISION 9305280032 930528 ALLSTATE POSTPONES PLANS TO CANCEL POLICIES IN FLORIDA BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL ALLSTATE INSURANCE CO TRIED TO MAKE AMENDS AFTER A PUBLIC OUTCRY OVER ITS PLANS TO CANCEL ONEFOURTH OF ITS HOMEOWNER INSURANCE POLICIES IN FLORIDA BUT THE COMPANY'S DECISION TO POSTPONE THE MOVE UNTIL NOVEMBER MAY SIMPLY BE A FACESAVING MEASURE BECAUSE THE FLORIDA LEGISLATURE APPEARS POISED TO BAN SUCH CANCELLATIONS UNTIL THEN ANYWAY ALLSTATE A UNIT OF CHICAGOBASED SEARS ROEBUCK & CO SAID IT WOULD WAIT UNTIL AFTER THE HURRICANE SEASON WHICH ENDS IN NOVEMBER ALLSTATE HAD PLANNED TO BEGIN LETTING POLICIES LAPSE IN SEPTEMBER THE COMPANY'S ACTION WHICH AFFECTS 300000 POLICYHOLDERS COINCIDED WITH A HEARING IN WASHINGTON AND A SPECIAL SESSION OF THE FLORIDA LEGISLATURE A CONGRESSIONAL PANEL MET YESTERDAY TO HEAR TESTIMONY ON THE DECLINING AVAILABILITY ON PROPERTY INSURANCE IN COASTAL AREAS FLORIDA LAWMAKERS MET YESTERDAY TO ADDRESS THE INSURANCE SHORTAGE ALLSTATE OFFICIALS SAID THE COMPANY DELAYED ITS ACTION TO GIVE THE FLORIDA LEGISLATURE MORE TIME TO CONSIDER A PLAN TO HELP INSURANCE COMPANIES LIMIT THEIR LOSSES ON MAJOR STORMS LIKE LAST YEAR'S HURRICANE ANDREW THE PROPOSED PROGRAM WHICH WOULD SPREAD LOSSES PROPORTIONALLY AMONG ALL COMPANIES THAT INSURE HOMES IN THE STATE WOULD MAKE IT EASIER FOR INSURANCE COMPANIES TO STAY IN THE FLORIDA MARKET ACCORDING TO PROPONENTS ALLSTATE ALSO SAID IT WOULD NOT FIGHT THE MORATORIUM ON CANCELLATIONS ISSUED LAST WEEK BY FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER THE BAN LASTS UNTIL AUG 16 FLORIDA GOV LAWTON CHILES FOLLOWED UP MR GALLAGHER'S ACTION BY ASKING THE LEGISLATURE TO EXTEND THE MORATORIUM FOR AN ADDITIONAL 90 DAYS ALLSTATE WHICH IS EXPECTED TO ISSUE MORE THAN 2 BILLION IN STOCK NEXT WEEK IN ITS FIRST PUBLIC SHARE ISSUE PAID 25 BILLION IN CLAIMS BEFORE TAXES ON HURRICANE ANDREW AND WANTS TO REDUCE ITS EXPOSURE TO FUTURE FLORIDA STORMS TO 1 BILLION IN ADDITION TO LETTING POLICIES LAPSE ALLSTATE WANTS TO RAISE RATES INSURERS HAVE ALSO SOUGHT TO LIMIT THEIR EXPOSURE TO STORMS IN NEW JERSEY NEW YORK CONNECTICUT AND OTHER EASTERN STATES ALTHOUGH THE ACTIONS HAVE BEEN NOWHERE NEAR AS SWEEPING AS WHAT ALLSTATE PROPOSED FOR FLORIDA AT YESTERDAY'S HEARING IN WASHINGTON REP JOSEPH KENNEDY D MASS SAID HE HAS SENT A LETTER TO THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS SEEKING THEIR SUPPORT FOR A MORATORIUM AGAINST POLICY CANCELLATIONS IN ANY STATE WHERE THEY HAVE BECOME A PROBLEM A SPOKESMAN FOR THE GROUP WHICH REPRESENTS STATE INSURANCE REGULATORS SAID HE HAD NO COMMENT BECAUSE THE ORGANIZATION HASN'T SEEN THE LETTER 9305280031 930528 GLOBAL EXECUTIVES ARE UPBEAT OVER RESULTS FOR SECOND QUARTER NEW YORK OPTIMISM FOR HIGHER SECONDQUARTER SALES AND PROFITS ROSE SIGNIFICANTLY IN DUN & BRADSTREET CORP'S LATEST QUARTERLY SURVEY OF EXECUTIVES WORLDWIDE OPTIMISM TOPPED THE LEVEL OF THE PREVIOUS QUARTER'S SURVEY AND THAT OF A YEAR EARLIER THE BUSINESSINFORMATION PUBLISHING CONCERN SAID WITH THE EXCEPTION OF A FEW BLEAK SPOTS MOST NOTABLY JAPAN SALES OPTIMISM ROSE IN MOST OF THE COUNTRIES SURVEYED SAID JOSEPH W DUNCAN VICE PRESIDENT AND CHIEF ECONOMIST AT D&B MR DUNCAN SAID THAT IN LINE WITH HIGHER SALES OPTIMISM DUN & BRADSTREET FOUND THAT OPTIMISM ABOUT PROFITS AND EMPLOYMENT ALSO ROSE OVER FIRSTQUARTER AND YEARAGO LEVELS IN EUROPE SALES EXPECTATIONS INCREASED FROM THE RECORD LOW LEVEL OF A QUARTER AGO THE COMPANY SAID WITH THE EXCEPTION OF DECLINES IN BELGIUM AND THE NETHERLANDS ALL EUROPEAN COUNTRIES TURNED MORE OPTIMISTIC ABOUT SALES EXECUTIVES IN THE UK WERE AMONG THE MOST OPTIMISTIC THE SURVEY RESULTS CONFIRM THAT UK BUSINESS LEADERS BELIEVE THAT THE RECESSION IN BRITAIN HAS ENDED MR DUNCAN SAID IN BOTH GERMANY AND FRANCE EXPECTATIONS ROSE SLIGHTLY FOR SALES AND EMPLOYMENT BUT SLIPPED FOR PROFITS THE RESULTS SUGGEST THAT WHILE THERE ARE SOME SIGNS OF AN IMPROVING TREND IN OPTIMISM AMONG GERMAN BUSINESSES THEY STILL HAVE A LONG WAY TO GO MR DUNCAN SAID IN JAPAN EXPECTATIONS FOR HIGHER SECONDQUARTER SALES FELL TO THE LOWEST LEVEL SINCE D&B BEGAN ITS SURVEYS THERE IN 1990 THE OUTLOOK FOR HIGHER SALES IN JAPAN HAS FALLEN OR REMAINED ESSENTIALLY UNCHANGED IN EACH OF THE PAST 11 QUARTERLY SURVEYS D&B SAID EVEN SO PROFIT OPTIMISM INCREASED SLIGHTLY IN JAPAN REVERSING A TREND D&B SAID THE EMPLOYMENT OUTLOOK ALSO BRIGHTENED A LITTLE IN THAT COUNTRY AS FOR THE US BUSINESS EXPECTATIONS FOR BOTH SALES AND PROFITS ROSE WELL ABOVE THE LEVELS OF A QUARTER AND A YEAR EARLIER DRIVEN BY STRONG GAINS AMONG MANUFACTURERS THE OUTLOOK FOR HIGHER SALES AND PROFITS CONTINUED TO CLIMB IN THE US UNDERSCORING FORECASTS FOR STEADY ECONOMIC GROWTH MR DUNCAN SAID 9305280030 930528 JARDINE STRATEGIC SAYS IT'S THE LARGEST HOLDER OF CYCLE & CARRIAGE SPECIAL TO THE WALL STREET JOURNAL HONG KONG A WEEK AFTER THE INSTALLATION OF A JARDINEASSOCIATED OFFICIAL AT THE HELM OF CYCLE & CARRIAGE LTD JARDINE STRATEGIC HOLDINGS LTD CONFIRMED THAT IT BECAME THE LARGEST SHAREHOLDER OF THE SINGAPORE COMPANY JARDINE STRATEGIC RAISED ITS CYCLE & CARRIAGE SHAREHOLDING TO 23 FROM ABOUT 15 WITH THE OPENMARKET PURCHASE THURSDAY OF 20 MILLION SHARES CYCLE & CARRIAGE HAS INTERESTS IN AUTOMOBILE DISTRIBUTION PROPERTY DEVELOPMENT AND RETAILING JARDINE STRATEGIC SAID THE PURCHASES COST ABOUT 93 MILLION WHILE IT HAS COMPLEMENTARY INTERESTS IN MERCEDESBENZ DISTRIBUTION PROPERTY DEVELOPMENT AND FOOD RETAILING JARDINE STRATEGIC SAID IT HAS NO INTENTION OF INCREASING ITS SHARE OF CYCLE & CARRIAGE PAST 25 WHICH UNDER SINGAPORE SECURITIES CODE WOULD SPARK A GENERAL OFFER THE BUYING SPREE DROVE UP THE ENTIRE SINGAPORE STOCK MARKET WHILE SHARES OF CYCLE & CARRIAGE ITSELF ROSE 40 SINGAPORE CENTS TO CLOSE AT S740 US461 LAST WEEK THE CHAIRMAN OF JARDINE MATHESON SINGAPORE LTD BOON YOON CHIANG WAS NAMED GROUP MANAGING DIRECTOR OF CYCLE & CARRIAGE SUCCEEDING THOMAS CHAU A MEMBER OF THE COMPANY'S FOUNDING FAMILY THE MANAGEMENT CHANGE IS EFFECTIVE SEPT 30 JARDINE STRATEGIC HAS HOLDINGS IN OTHER LISTED GROUP COMPANIES INCLUDING HONGKONG LAND HOLDINGS LTD DAIRY FARM INTERNATIONAL HOLDINGS LTD AND MANDARIN ORIENTAL INTERNATIONAL LTD AND HAS ABOUT A 35 STAKE IN JARDINE MATHESON CONGLOMERATE JARDINE MATHESON HAS AUTOMOBILE INTERESTS THROUGH ITS JARDINE PACIFIC ARM 9305280029 930528 SG WARBURG SAYS PRETAX EARNINGS FELL 11 FOR FISCAL YEAR LONDON SG WARBURG GROUP PLC ANNOUNCED AN 11 DECLINE IN PRETAX EARNINGS FOR THE YEAR ENDED MARCH 31 BUT SAID THAT BUSINESS CONDITIONS PICKED UP LAST AUTUMN AND THAT THE IMPROVEMENT HAS CONTINUED SO FAR THIS YEAR THE BRITISH MERCHANT BANK SAID IT DID WELL IN BRITAIN AND CONTINENTAL EUROPE AND INCREASED ITS EARNINGS IN THE US DURING THE YEAR IT MAINTAINED A LEADING ROLE IN THE ISSUE OF STERLING FIXEDINTEREST SECURITIES AND TOOK A FRONT POSITION DURING THE YEAR AS AN ADVISER IN EUROPEAN MERGERS AND ACQUISITIONS BECAUSE OF SLACK MARKET CONDITIONS IN THE FIRST HALF OF THE PERIOD HOWEVER WARBURG'S GROUP PRETAX PROFIT FOR THE YEAR FELL TO 1482 MILLION 2293 MILLION FROM 1663 MILLION NET INCOME AFTER TAX AND MINORITY INTERESTS FELL 17 TO 843 MILLION EQUIVALENT TO 375 PENCE PER SHARE 58 CENTS ON A DILUTED BASIS THE LOWER PROFIT HAD BEEN EXPECTED BUT THE FINAL OUTTURN PROVED BETTER THAN ANTICIPATED BY WARBURG ITSELF SIX MONTHS AGO AND BETTER THAN HAD BEEN FORECAST BY MANY ANALYSTS AS A RESULT WARBURG SAID IT WOULD INCREASE ITS DIVIDEND BY ONE PENNY TO 19 PENCE PER SHARE WARBURG SHARES ROSE 23 PENCE ON THE LONDON STOCK EXCHANGE TO CLOSE AT 717 PENCE COMMENTING ON THE RESULTS LORD CAIRNS WARBURG'S CHIEF EXECUTIVE OFFICER SAID THE GROUP WAS HELPED BY THE STEADY GROWTH OF ITS 75 SUBSIDIARY MERCURY ASSET MANAGEMENT GROUP PLC THE CONTRIBUTION TO GROUP PRETAX EARNINGS OF WARBURG'S INVESTMENT BANKING OPERATIONS ON THE OTHER HAND FELL TO 87 MILLION FROM 1165 MILLION IN RECENT YEARS ITS INVESTMENT BANKING EARNINGS HAVE FLUCTUATED WILDLY REACHING A PEAK IN 1990 OF 1597 MILLION ONLY TO FALL THE NEXT YEAR TO 95 MILLION 9305280028 930528 LAW LEGAL BEAT INS URGED TO VIEW PERSECUTION OF GAYS AS GROUNDS FOR ASYLUM BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL GAY AND HUMANRIGHTS GROUPS ARE URGING US OFFICIALS TO RECOGNIZE PERSECUTION OF HOMOSEXUALS AS GROUNDS FOR POLITICAL ASYLUM THE GROUPS ARE HELPING THREE INDIVIDUALS PURSUE SUCH CLAIMS BEFORE THE IMMIGRATION AND NATURALIZATION SERVICE IN HOPES THAT THEIR EFFORTS WILL CLEAR THE WAY FOR FUTURE GAY ASYLUM SEEKERS THE THREE CASES WHICH COULD TAKE YEARS TO RESOLVE INVOLVE A LESBIAN WHO WAS A POLITICAL ACTIVIST IN MOSCOW AN IRANIAN WHO FEARS HE WILL BE EXECUTED UNDER ISLAMIC LAW FOR HOMOSEXUALITY AND A GAY NICARAGUAN WITH AIDS WHO SAYS HE WILL BE PERSECUTED IF HE'S DEPORTED FROM THE US US LAW WAS CHANGED IN 1990 TO REMOVE HOMOSEXUALITY AS A BAR TO IMMIGRATION BUT FEW GAY REFUGEES HAVE MADE ASYLUM CLAIMS BASED ON THEIR SEXUALITY PARTLY FOR FEAR OF PUBLICITY OR REPERCUSSIONS AGAINST RELATIVES BACK HOME ACTIVISTS SAY THEY ARE TAKING UP SUCH CASES NOW BECAUSE THE HARSH TREATMENT OF GAYS ABROAD INCLUDING TORTURE AND EXECUTION BY FOREIGN GOVERNMENTS HAS RECEIVED INCREASED ATTENTION FROM HUMANRIGHTS GROUPS AND THE US STATE DEPARTMENT IN RECENT YEARS THE ASYLUM AREA IS TRADITIONALLY ONE OF THE MOST CONTENTIOUS AND POLARIZED POLICY AREAS IN THE US SAID ARTHUR HELTON DIRECTOR OF THE REFUGEE PROJECT OF THE LAWYERS COMMITTEE FOR HUMAN RIGHTS WHICH SUPPORTS ASYLUM FOR PERSECUTED HOMOSEXUALS TO WIN POLITICAL ASYLUM APPLICANTS MUST SHOW THEY ARE REFUGEES AND CAN'T RETURN TO THEIR HOME COUNTRIES BECAUSE OF A WELLFOUNDED FEAR OF BEING PERSECUTED FOR REASONS OF RACE RELIGION NATIONALITY MEMBERSHIP IN A PARTICULAR SOCIAL GROUP OR POLITICAL OPINION THE GAY APPLICANTS' ELIGIBILITY IS BASED ON MEMBERSHIP IN A PARTICULAR SOCIAL GROUP SAID SUZANNE GOLDBERG AN ATTORNEY AT LAMBDA LEGAL DEFENSE AND EDUCATION FUND WHO IS WORKING ON THE INS CASES THERE CAN BE LITTLE QUESTION THAT LESBIANS AND GAY MEN WHEN TREATED AS A CLASS OR PERSECUTED AS A GROUP FALL UNDER THAT CATEGORY RICHARD KENNEY A SPOKESMAN FOR THE INS SAID THAT BEING A HOMOSEXUAL FROM A CERTAIN COUNTRY MAY FIT THE CATEGORY FOR REFUGEE STATUS BUT HE SAID THE AGENCY HAS NO GENERAL GUIDELINES FOR DECIDING THAT QUESTION WE DON'T MAKE GENERALIZATIONS FOR ANY PARTICULAR CAUSE HE SAID THE INDIVIDUAL HAS TO MAKE THE CASE FOR BEING PERSECUTED AS A PERSON HE HAS TO MAKE A VERY STRONG CASE THAT HE'S GOING TO SUBJECT HIMSELF TO UNREASONABLE RISK OF PERSECUTION IF HE RETURNS ONE OF THE HURDLES FOR GAY ACTIVISTS IS THAT INS DECISIONS AREN'T AUTOMATICALLY PRECEDENTSETTING FOR OTHER APPLICANTS IN 1990 THE BOARD OF IMMIGRATION APPEALS RULED THAT A GAY CUBAN SHOULD BE GRANTED REFUGEE STATUS WHICH DOESN'T PROVIDE AS MUCH PROTECTION AS POLITICAL ASYLUM THE JUSTICE DEPARTMENT LAST YEAR TURNED DOWN A REQUEST TO MAKE THAT DECISION PRECEDENTSETTING IN THE GAY IRANIAN'S CASE THE UNITED NATIONS HIGH COMMISSIONER FOR REFUGEES WROTE A LETTER SUPPORTING THE ASYLUM CLAIM THE UN AGENCY SAID THE 32YEAROLD MAN'S FEARS OF PERSECUTION ARE OBJECTIVELY SUPPORTED BY REPORTS CONCERNING THE TREATMENT OF HOMOSEXUALS BY THE IRANIAN GOVERNMENT THE LETTER CITED REPORTS OF GAY MEN WHO WERE BEHEADED AND LESBIANS WHO WERE STONED TO DEATH THE UN OFFICE SAID THAT AT LEAST FOUR OTHER COUNTRIES INCLUDING CANADA HAVE GRANTED ASYLUM BECAUSE OF THE PERSECUTION OF GAYS THE INS RECENTLY TURNED DOWN THE APPLICATION OF THE RUSSIAN WOMAN IN HER APPLICATION SHE HAD CITED IN DETAIL HER INVOLVEMENT IN UNDERGROUND GAY GROUPS IN MOSCOW IN THE 1980S AND NUMEROUS ARRESTS FOR HER ACTIVITIES BUT THE INS ASYLUM OFFICIAL FOUND THAT BECAUSE OF RECENT CHANGES IN THE FORMER SOVIET UNION THE WOMAN HADN'T PROVED THAT THE RISK OF PERSECUTION STILL EXISTED SAID MS GOLDBERG OF LAMBDA MS GOLDBERG SAID THE WOMAN WILL APPEAL HOLDING MASS TRIALS IN PRODUCTLIABILITY CASES A FAVORITE TOOL OF JUDGES DEALING WITH CROWDED DOCKETS MAY BECOME MUCH MORE DIFFICULT AS A RESULT OF A RECENT FEDERAL APPEALS COURT RULING THE RULING BY THE US APPEALS COURT IN NEW YORK STEMS FROM THE CONSOLIDATED TRIAL OF 48 OF 600 CASES KNOWN AS THE NEW YORK POWERHOUSE LITIGATION THE LAWSUITS WERE BROUGHT BY FORMER EMPLOYEES AT ELECTRIC POWER PLANTS IN NEW YORK WHO SAID THEY SUFFERED RESPIRATORY AND OTHER AILMENTS FROM EXPOSURE TO ASBESTOS THE SECOND US CIRCUIT COURT OF APPEALS RULED THAT FEDERAL JUDGE CHARLES SIFTON IN BROOKLYN UNFAIRLY LUMPED TOGETHER THE 48 CASES FOR TRIAL THE COURT SAID THERE WERE TOO MANY DISTINCTIONS BETWEEN THE VARIOUS PLAINTIFFS TO ALLOW FOR A CONSOLIDATED TRIAL THE DECISION WON'T HAVE A MAJOR IMPACT ON THE POWERHOUSE LITIGATION OVERALL BECAUSE A SETTLEMENT OF ABOUT 100 MILLION WAS REACHED FOR ALL BUT TWO OF THE 600 CASES AS A RESULT OF THE RULING THE REMAINING TWO WILL BE SENT BACK FOR A SECOND TRIAL WHILE THE APPEALS COURT DIDN'T PROHIBIT CONSOLIDATIONS IT RAISED QUESTIONS ABOUT THE ABILITY OF DEFENDANTS TO GET A FAIR TRIAL WHEN THEY ARE LUMPED TOGETHER THE MAELSTROM OF FACTS FIGURES AND WITNESSES WAS LIKELY TO LEAD TO JURY CONFUSION THE APPELLATE PANEL SAID IN A 21 DECISION THE COURT SPELLED OUT EIGHT FACTORS SUCH AS THE SIMILARITY OF THE PLACES WHERE VICTIMS WORKED AND THE DISEASES THEY DEVELOPED THAT JUDGES SHOULD CONSIDER BEFORE CONSOLIDATING LIABILITY TRIALS IN A DISSENT JUDGE JOHN WALKER SAID THE RULING COULD UNDERMINE EFFORTS AROUND THE COUNTRY TO CONSOLIDATE LIABILITY CASES JUDGE WALKER'S CONCERNS WERE ECHOED BY KENNETH FEINBERG A WASHINGTONBASED ARBITRATOR WHO WAS APPOINTED BY THE TRIAL JUDGE TO HELP NEGOTIATE THE POWERHOUSE SETTLEMENT THE RULING IS UNFORTUNATE IT THROWS ANOTHER JUDICIAL ROADBLOCK IN THE WAY OF TRIAL JUDGES TRYING TO DEAL FLEXIBLY WITH MASS LIABILITY LITIGATION MR FEINBERG SAID CREDITORS OF THE DEFUNCT GASTON & SNOW HAVE ASKED A BANKRUPTCY JUDGE TO END EFFORTS TO PUT TOGETHER A PAYMENT PLAN FOR CREDITORS AND INSTEAD ALLOW THEM TO SUE THE LAW FIRM'S FORMER PARTNERS SADDLED WITH AN ESTIMATED 63 MILLION IN DEBT THE BOSTON LAW FIRM DISSOLVED 20 MONTHS AGO AND FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE UNDER CHAPTER 11 THE PARTNERS CAN'T BE SUED DIRECTLY WHILE A PLAN IS WORKED OUT TO PAY CREDITORS ALFRED J BIANCO A PARTNER WITH KAYE SCHOLER FIERMAN HAYS & HANDLER IN NEW YORK WHICH REPRESENTS THE CREDITORS SAID THAT AFTER MORE THAN A YEAR OF TALKS ONLY 24 OF THE 151 FORMER GASTON & SNOW PARTNERS HAVE APPROVED THE PAYMENT PLAN NOW BEFORE THE COURT MR BIANCO SAID HE FILED A MOTION YESTERDAY ASKING US BANKRUPTCY COURT JUDGE CORNELIUS BLACKSHEAR IN NEW YORK TO CONVERT THE CASE FROM A CHAPTER 11 TO A CHAPTER 7 FILING BECAUSE IT'S UNLIKELY THE OTHER 127 PARTNERS WILL APPROVE THE PLAN MR BIANCO SAID THAT UNDER CHAPTER 7 THE FORMER PARTNERS WOULD BE INDIVIDUALLY AND JOINTLY LIABLE MEANING THAT INDIVIDUAL PARTNERS COULD BE SUED FOR THE ENTIRE AMOUNT THAT'S OWED MR BIANCO SAID THE CREDITORS ARE OWED MORE THAN 45 MILLION UNDER THE PROPOSED PAYMENT PLAN THE CREDITORS WOULD HAVE RECEIVED A TOTAL OF 23 MILLION OVER 10 YEARS WITH INDIVIDUAL PARTNERS CONTRIBUTING A PORTION BASED ON THEIR EARNINGS AT THE LAW FIRM THE PARTNERS COULD TAKE CARE OF THE CREDITORS' CLAIMS BY PAYING A TOTAL OF 196 MILLION THIS YEAR RATHER THAN OVER 10 YEARS PREVIOUSLY FORMER PARTNERS HAVE COMPLAINED THAT 23 MILLION WAS FAR TOO MUCH AND THEY HAVE OFFERED TO PAY ONLY 5 MILLION LESLIE D CORWIN A PARTNER AT MORRISON COHEN SINGER & WEINSTEIN IN NEW YORK WHICH REPRESENTS NINE FORMER PARTNERS SAID THE PARTNERS THEMSELVES WOULD HAVE TO FILE FOR PERSONAL BANKRUPTCYCOURT PROTECTION TO SHIELD THEMSELVES IF THE JUDGE APPROVES THE CONVERSION TO CHAPTER 7 ARTHUR S OLICK A PARTNER WITH ANDERSON KILL OLICK & OSHINSKY IN NEW YORK WHICH REPRESENTS 87 FORMER PARTNERS COULDN'T BE REACHED FOR COMMENT JUDGE BLACKSHEAR IS SCHEDULED TO HEAR ARGUMENTS ON THE MOTION JULY 9 JONATHAN M MOSES AND ARTHUR S HAYES CONTRIBUTED TO THIS ARTICLE 9305280027 930528 BUSINESS BRIEF MARTIN MARIETTA CORP ORDER WORTH 1412 MILLION IS RECEIVED FROM MILITARY MARTIN MARIETTA CORP BETHESDA MD SAID IT WAS AWARDED A 1412 MILLION CONTRACT BY THE US ARMY MISSILE COMMAND TO MANUFACTURE AN ADVANCED VERSION OF HELLFIRE ANTIARMOR MISSILES FOR THE ARMY AND MARINE CORPS UNDER THE CONTRACT MARTIN MARIETTA WILL BUILD 3905 HELLFIRE II MISSILES WITH INITIAL DELIVERIES SCHEDULED FOR EARLY NEXT YEAR AND CONTINUING THROUGH 1995 THE COMPANY SAID ANTICIPATED ADDITIONAL DOMESTIC ORDERS OF THE HELLFIRE II PLUS INTERNATIONAL ORDERS COULD BRING TOTAL SALES OF THE NEW WEAPON TO 1 BILLION THE HELICOPTERLAUNCHED HELLFIRE II USES THE SAME LASERGUIDANCE SYSTEM AS ITS PREDECESSOR THE HELLFIRE BUT INCORPORATES AN IMPROVED SEEKER DIGITAL AUTOPILOT CONTROLS AND A DUAL WARHEAD WITH TWO EXPLOSIVE CHARGES ENGINEERED TO DEFEAT REACTIVE ARMOR 9305280026 930528 SENATE PANEL CLEARS BILL ON MARKETING OF US SECURITIES BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE BANKING COMMITTEE APPROVED A BILL PROVIDING FOR MODEST NEW REGULATION OF THE MASSIVE GOVERNMENT SECURITIES MARKET THE COMMITTEE'S UNANIMOUS ACTION MARKS THE FIRST STEP OF A LEGISLATIVE JOURNEY THAT EVENTUALLY WILL LEAD TO PIVOTAL HOUSESENATE NEGOTIATIONS KEY HOUSE MEMBERS MAINTAIN THAT THE SALOMON BROTHERS INC BOND SCANDAL AND OTHER MARKET PROBLEMS DEMAND A STRONGER REGULATORY RESPONSE THAN PROPOSED IN THE SENATE BILL CHRISTOPHER DODD D CONN CHAIRMAN OF THE SENATE SECURITIES SUBCOMMITTEE SAID HE HOPES THE FULL SENATE CAN ACT ON THE BILL SHORTLY AFTER THE MEMORIAL DAY RECESS HE ADDED THAT HE LOOKS FORWARD TO MEETING WITH HOUSE NEGOTIATORS IN DUE COURSE THE SENATE MEASURE PROVIDES FOR THE FIRST REGULATION OF GOVERNMENT SECURITIES SALES PRACTICE A RESPONSE TO ABUSES SUCH AS EXCESSIVE MARKUPS IT ALSO WOULD RESTORE THE TREASURY'S LAPSED RULEMAKING AUTHORITY IN THE GOVERNMENTSECURITIES AREA REQUIRE A STUDY OF WHETHER BOND PRICE INFORMATION IS DISSEMINATED ADEQUATELY AND EXPRESSLY PROHIBIT MAKING FALSE WRITTEN STATEMENTS IN TREASURY AUCTIONS OR OTHER GOVERNMENT SECURITIES OFFERINGS BY CONTRAST A BILL PENDING IN THE HOUSE WOULD REQUIRE DEALERS TO MAINTAIN RECORDS IN A FORM THAT CAN BE TRANSMITTED ELECTRONICALLY TO THE SECURITIES AND EXCHANGE COMMISSION UPON REQUEST AND WOULD EMPOWER REGULATORS TO REQUIRE MARKET PLAYERS TO REPORT LARGE POSITIONS IN GOVERNMENT SECURITIES IT ALSO WOULD GIVE THE SEC STANDBY AUTHORITY TO INTERVENE TO ENSURE BROADER AVAILABILITY OF BOND PRICE INFORMATION THE SEC STRONGLY BACKS THE HOUSE BILL WHICH IS CHAMPIONED BY ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D MICH AND BY REP EDWARD MARKEY D MASS CHAIRMAN OF THE PANEL'S SUBCOMMITTEE WITH FRONTLINE SECURITIES LAW JURISDICTION THE FEDERAL RESERVE BOARD FAVORS THE SENATE APPROACH BUT THE FEDERAL RESERVE BANK OF NEW YORK SUPPORTS THE REPORTING OF LARGE POSITIONS THE TREASURY DURING THE BUSH ADMINISTRATION OPPOSED THE HOUSE BILL WHICH DIED LATE IN THE LAST CONGRESS DUE TO A TURF FIGHT BETWEEN THE HOUSE BANKING AND ENERGY AND COMMERCE COMMITTEES BUT THE CLINTON TREASURY HAS TAKEN NO FORMAL POSITION ON PENDING LEGISLATION AND WILL WORK WITH INTERESTED LAWMAKERS TO TRY TO FASHION AN ACCEPTABLE BILL SAID TREASURY UNDERSECRETARY FRANK NEWMAN HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS INSISTS THAT ANY NEW RULES FOR BANK DEALERS SHOULD BE IMPOSED BY BANK REGULATORS NOT THE SEC SEEMINGLY ASSURING ANOTHER TURF BATTLE AS SOON AS THE TREASURY'S RULEMAKING AUTHORITY IS REVIVED THE DEPARTMENT WILL PROPOSE RULES ESTABLISHING HIGHER MINIMUM CAPITAL STANDARDS FOR GOVERNMENT SECURITIES BROKERS AND DEALERS AS WELL AS NOTIFICATION REQUIREMENTS FOR LARGE CAPITAL WITHDRAWALS AND NEW CUSTOMER PROTECTION RULES ACCORDING TO MATERIAL PROVIDED TO THE SENATE PANEL BY THE TREASURY 9305280025 930528 BUSINESS BRIEF SOCIETE NATIONALE ELF AQUITAINE FIRM SEES OPERATING INCOME FALLING 25 FOR FIRST HALF SOCIETE NATIONALE ELF AQUITAINE SAID THAT ON THE BASIS OF RESULTS THROUGH APRIL OPERATING INCOME FOR THE FIRST HALF OF 1993 SHOULD BE ABOUT 25 LOWER THAN A YEAR EARLIER ADDRESSING THE ANNUAL SHAREHOLDERS MEETING LOIK LE FLOCHPRIGENT CHAIRMAN SAID THE FRENCH COMPANY'S OPERATING ENVIRONMENT SO FAR THIS YEAR HAS BEEN PARTICULARLY POOR AND HAS BEEN A CONTINUATION OF THE TREND OBSERVED IN LATE 1992 IN TERMS OF WEAK ECONOMIC ACTIVITY DEPRESSED REFINING MARGINS AND LOW PETROCHEMICAL PRICES FOR THE 1992 FIRST HALF ELF AQUITAINE HAD OPERATING INCOME OF 79 BILLION FRENCH FRANCS 144 BILLION AND NET INCOME OF 33 BILLION FRANCS FOR ALL OF 1992 THE STATECONTROLLED OIL COMPANY'S NET INCOME SLUMPED 37 TO 62 BILLION FRANCS WHILE REVENUE WAS VIRTUALLY FLAT AT 2002 BILLION FRANCS 9305280024 930528 MARKETING & MEDIA JOURNAL SUBSCRIPTION PRICE WILL RISE 72 ON JULY 1 NEW YORK DOW JONES & CO SAID THE ANNUAL SUBSCRIPTION PRICE FOR THE WALL STREET JOURNAL ITS FLAGSHIP PUBLICATION WILL RISE 72 TO 149 FROM 139 EFFECTIVE JULY 1 THE JOURNAL MOST RECENTLY RAISED SUBSCRIPTION PRICES IN JANUARY 1991 THE SINGLECOPY PRICE 75 CENTS REMAINS UNCHANGED THE INCREASE IN THE SUBSCRIPTION RATE REFLECTS HIGHER PUBLISHING COSTS IN ADDITION TO THE WALL STREET JOURNAL AND ITS OVERSEAS EDITIONS DOW JONES PUBLISHES BARRON'S AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND COMMUNITY NEWSPAPERS 9305280023 930528 BUSINESS BRIEF GE BOOSTS ITS OWNERSHIP OF TUNGSRAM HUNGARIAN LIGHTBULB MAKER TO 966 GENERAL ELECTRIC CO BOOSTED ITS STAKE IN TUNGSRAM THE HUNGARIAN LIGHTBULB COMPANY TO 966 FROM 752 THE MOVE SCOTCHES RUMORS THAT GE WAS LOSING INTEREST IN THE VENTURE THAT HAS BEEN BEDEVILED BY LABOR PROBLEMS AND SOARING COSTS EARLY LAST YEAR GE HAD SAID THAT IT WOULD SLOW THE FLOW OF CAPITAL INVESTMENT TO THE HUNGARIAN UNIT YESTERDAY GE BASED IN FAIRFIELD CONN BOUGHT THE 244 STAKE OWNED BY MAGYAR HITEL BANK A HUNGARIAN CREDIT BANK A GE SPOKESMAN SAID THE PARTIES INVOLVED IN THE TRANSACTION HAD AGREED NOT TO DISCLOSE THE TERMS GE BOUGHT A MAJORITY SHARE IN TUNGSRAM IN JANUARY 1990 FOR 150 MILLION AND INCREASED IT TO 75 IN 1991 GE SAID IT HAD INVESTED MORE THAN 365 MILLION IN TUNGSRAM BEFORE ITS LATEST INCREASE IN OWNERSHIP BUT BLAMING WEAK EUROPEAN DEMAND AND SOARING COSTS IN HUNGARY GE HAD SAID IN MARCH OF LAST YEAR THAT IT WOULD REDUCE ITS CAPITAL INVESTMENT IN THE MANUFACTURING OPERATION OF THE FACILITY TO 30 MILLION FROM THE PROJECTED 40 MILLION IN 1992 THE SMALL BUT PUBLIC CUTBACK WAS THEN SEEN BY HUNGARIAN OFFICIALS AS AIMED AT PRESSURING BUDAPEST INTO FURTHER DEVALUING THE FORINT THE HUNGARIAN CURRENCY GE ALSO HAS BEEN FACING STRONG OPPOSITION FROM THE UNION AT THE PREVIOUSLY STATERUN COMPANY IN ITS EFFORTS TO DRASTICALLY REDUCE THE WORKFORCE AND INCREASE PRODUCTION SPEED GE HAS BLAMED THE CURRENCY AND LABOR PROBLEMS FOR SHARPLY RISING PRODUCTION COSTS IN HUNGARY WHICH IT SAID HAS BEEN CURTAILING THE COMPETITIVENESS OF TUNGSRAM EXPORTS GE'S COMPLAINTS TO HUNGARIAN OFFICIALS AND ITS IDLING OF SOME FACTORIES LAST YEAR TO REDUCE INVENTORY SPAWNED RUMORS IN THE PRESS THERE THAT GE WAS LOSING INTEREST IN EASTERN EUROPE AS A MANUFACTURING BASE AND WAS PLANNING A RETREAT BUT YESTERDAY A SPOKESMAN AT GE LIGHTING UNIT IN CLEVELAND SAID TUNGSRAM WAS A KEY ELEMENT IN GE'S LIGHTING STRATEGY HE SAID THAT GAINING ALMOST 100 OWNERSHIP GIVES GE INCREASED FLEXIBILITY IN MANAGING AND INVESTING IN THE BUSINESS GE SAID THAT THE ACQUISITION WILL ALLOW THE HUNGARIAN UNIT TO UNDERTAKE ADDITIONAL INVESTMENTS NEEDED FOR RESTRUCTURING AND PRODUCT DEVELOPMENT THE COMPANY ADDED THAT MUCH OF THE CAPITAL INJECTED SO FAR HAS GONE INTO MANUFACTURING ENERGYSAVING COMPACT FLUORESCENT LAMPS 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 9305280022 930528 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED LAST FRIDAY ACCOUNTED FOR 164 OR AN AVERAGE 458 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME THIS INCLUDED PROGRAM TRADING RELATED TO LAST FRIDAY'S MONTHLY EXPIRATION OF STOCKINDEX OPTIONS AND FUTURES BROKERAGE FIRMS EXECUTED AN ADDITIONAL 59 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 515 INVOLVED STOCKINDEX ARBITRAGE UP FROM 373 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 577 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 313 WAS FOR CUSTOMERS AN ADDITIONAL 11 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS UBS SECURITIES NOMURA SECURITIES FIRST BOSTON AND LEHMAN BROTHERS DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY DID MOST OF ITS PROGRAM TRADING FOR CUSTOMERS 9305280020 930528 WHO'S NEWS KOMAG INC KOMAG INC MILPITAS CALIF JAMES B DOWNEY 52YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DASTEK INC WAS ELECTED A DIRECTOR OF THIS MAKER OF COMPUTER DISKDRIVE PARTS HIS ELECTION INCREASES BOARD MEMBERSHIP TO 10 9305280019 930528 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN PAUL A STREET 42 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND MANAGER STRATEGIC PLANNING AND BUSINESS DEVELOPMENT OF GE CAPITAL THIS COMPANY'S FINANCIAL SERVICES SUBSIDIARY MR STREET FORMERLY VICE PRESIDENT IN CHARGE OF THE CORPORATE RESTRUCTURING GROUP FILLS A POST THAT HAD BEEN VACANT FOR SEVERAL MONTHS 9305280018 930528 A FOLK HERO'S FANS HONOR OLD TRADITION BLAME THE MESSENGER THREATS GREET REPORTER WHO EXPOSED AS A TAX DODGER A POPULAR CRITIC OF CLINTON BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL LORNE FLEMING IS AN ADMITTED TAX EVADER AND ACCORDING TO SOME OF HIS FIVE FORMER WIVES A DELINQUENT ALIMONY PAYER BUT TO SOME AMERICANS HE IS FAST BECOMING A FOLK HERO AND THAT IS DRIVING THE SAN DIEGO UNIONTRIBUNE NUTS MR FLEMING BECAME AN OVERNIGHT MEDIA STAR ON PRESIDENT CLINTON'S TELEVISED TOWN MEETING IN SAN DIEGO EARLY LAST WEEK WHEN THE SELFEMPLOYED BUSINESSMAN PRESSED THE PRESIDENT ABOUT HIS TAX AND SPEND ECONOMIC PLAN SAN DIEGANS JUST DON'T HAVE ANY MORE MONEY TO CONTRIBUTE TO THE COFFERS OF GOVERNMENT MR FLEMING DECLARED CAN YOU NAME ONE COUNTRY THAT HAS EVER TAXED AND SPENT ITSELF BACK INTO PROSPERITY HIS POLISHED PERFORMANCE CAUGHT THE EYE OF A NUMBER OF MEDIA EXECUTIVES INCLUDING CONSERVATIVE TALKRADIO HOST RUSH LIMBAUGH THE FOLLOWING DAY MR LIMBAUGH ANOINTED MR FLEMING HIS POSTER BOY FOR THE BELEAGUERED MIDDLE CLASS APPEARANCES ON ABC'S NIGHTLINE AND PUBLIC BROADCASTING SERVICE'S MACNEIL/LEHRER NEWS HOUR FOLLOWED THEN LAST FRIDAY THE UNIONTRIBUNE ALERTED BY ONE OF MR FLEMING'S DISGRUNTLED FORMER WIVES REPORTED THAT THE IRATE TAXPAYER WAS HIMSELF A TAX DODGER GOVERNMENT DOCUMENTS SHOW THAT IN SEVERAL OF THE YEARS FROM 1980 TO 1988 MR FLEMING WAS EITHER LATE IN PAYING HIS TAXES TO CALIFORNIA AND THE FEDERAL GOVERNMENT OR SIMPLY DIDN'T FILE RETURNS AT ALL BUT STIRRED BY CONSERVATIVE COMMENTATORS INCLUDING MR LIMBAUGH MANY SAN DIEGANS HAVE TURNED THEIR WRATH NOT ON MR FLEMING BUT ON THE MESSENGER ABOUT 100 READERS HAVE CANCELED THEIR SUBSCRIPTIONS TO THE UNIONTRIBUNE WHICH HAS A TOTAL CIRCULATION OF ABOUT 400000 SCORES MORE HAVE WRITTEN ANGRY LETTERS DEFENDING MR FLEMING AS A MIDDLECLASS HERO TIM CAMERON WROTE THAT THIS MAN SIMPLY ASKED A QUESTION OF THE PRESIDENT THAT MANY OF US WERE SILENTLY SCREAMING A QUESTION THAT A THOUSAND COOING AND PANDERING JOURNALISTS DIDN'T HAVE THE GUTS TO ASK HUNDREDS OF MOSTLY ANONYMOUS PEOPLE HAVE PHONED THE WRITER OF THE ARTICLE VETERAN POLITICALREPORTER GERRY BRAUN THREATENING HIM WITH VIOLENCE OTHERS LEFT VULGAR MESSAGES DISCUSSING BODY PARTS MR BRAUN SAYS MANY HE ADDS HADN'T EVEN READ THE ARTICLE AND DON'T READ THE PAPER THE COUNTERATTACK AGAINST MR BRAUN BEGAN ALMOST THE MOMENT HIS ARTICLE APPEARED THAT MORNING MR FLEMING WAS A GUEST ON A POPULAR MORNING TALK SHOW HOSTED BY ROGER HEDGECOCK A FORMER SAN DIEGO MAYOR WHO RESIGNED FROM OFFICE IN 1985 AND WHO LATER SETTLED STATE CHARGES OF CAMPAIGNFINANCE VIOLATIONS BY AGREEING WITH OTHERS TO PAY 30000 THE CONSERVATIVE MR HEDGECOCK HAD SOME HARSH WORDS FOR THE PAPER AND ITS REPORTER MR BRAUN ACCORDING TO MR HEDGECOCK MR BRAUN WAS INSTRUCTED TO TRASH YOU HE IS ONE OF THEIR DESIGNATED HIT MEN A HACK A HATCHET MAN A JOURNALISTIC THUG HE CAME IN WITH NO TALENT NO BACKGROUND THEY TRANSFORMED HIM INTO A HATCHET MAN AND A THUG AND THAT'S WHAT HE DOES TO PEOPLE HE DOES THAT AS A PROFESSION MR HEDGECOCK THEN GAVE HIS LISTENERS THE FAX AND PHONE NUMBERS OF THE SAN DIEGO UNIONTRIBUNE MR LIMBAUGH CHIMED IN TOO USING HIS RADIO SHOW TO ATTACK THE UNIONTRIBUNE ARTICLE MR FLEMING'S TAX HISTORY HE ELABORATES IN AN INTERVIEW IS IRRELEVANT THE FOCAL POINT HE SAYS SHOULD HAVE BEEN MR FLEMING'S TOUGH QUESTION A QUESTION THE MAINSTREAM PRESS SHOULD HAVE BEEN ASKING A LONG TIME AGO IT'S FRIGHTENING HE ADDS THAT A NEWSPAPER LAUNCHED AN INVESTIGATION OF MR FLEMING WHEN PEOPLE HAVE COMMITTED WORSE THINGS THE 48YEAROLD MR FLEMING AT NO LOSS FOR WORDS HIMSELF LABELS THE ARTICLE A SPURIOUS LIBELOUS SLANTED AND UNTRUE REPRESENTATION OF ME HE DOES ADMIT THAT THERE WERE SOME YEARS THAT I DID NOT FILE TAX RETURNS BUT HE DENIES ALLEGATIONS THAT HE DIDN'T PAY ALIMONY THOUGH COURT RECORDS AND SOME OF HIS FIVE FORMER WIVES SAY OTHERWISE WHILE MR FLEMING DESCRIBES HIMSELF AS JUST A REGULAR GUY HE ALSO SAYS HE HAS WRITTEN HUNDREDS OF LETTERS TO LOCAL PAPERS AND NOW WRITES A MONTHLY COLUMN FOR ONE OF THEM HE FOUNDED A COALITION THREE YEARS AGO TO CRITIQUE SAN DIEGO'S FINANCES THE MESSAGE ON HIS ANSWERING MACHINE SAYS IN CASE YOU'RE INTERESTED I'M LIKE A LOT OF OTHER PEOPLE I'VE HAD TAX PROBLEMS WITH THE IRS THE UNIONTRIBUNE STANDS BY MR BRAUN AND HIS STORY WHICH WAS BASED ON TAX RECORDS PROVIDED BY ONE OF THE EXWIVES AND THE PAPER ISN'T WHAT MOST CONSERVATIVES HAVE IN MIND WHEN THEY TALK DERISIVELY OF THE LIBERAL MEDIA ELITE ITS EDITOR GERALD WARREN WAS A PRESS SECRETARY FOR PRESIDENT NIXON AS PETER KAYE THE UNIONTRIBUNE'S ASSOCIATE EDITOR WHO HAS BEEN WITH THE PAPER SINCE 1953 SAYS GOING BACK TO THE BEGINNING OF TIME WE'VE ALWAYS ENDORSED REPUBLICANS MR BRAUN SAYS THE PAPER HAS WRITTEN ROUGHLY 800 STORIES ON PRESIDENT CLINTON AND TAXES SINCE THE ELECTION INCLUDING DOZENS OF EDITORIALS AND CARTOONS RAZZING CLINTON THE REPORTER SAYS THE PAPER HAS NOTHING AGAINST MR FLEMING WE ARE EQUALOPPORTUNITY HYPOCRITE EXPOSERS THE PAPER DOES HAVE ITS SHARE OF SUPPORTERS ON CABLE NEWS NETWORK'S CAPITAL GANG LAST WEEKEND PANEL MEMBER ALBERT HUNT THE WASHINGTON BUREAU CHIEF OF THE WALL STREET JOURNAL MADE MR FLEMING HIS OUTRAGE OF THE WEEK THANKS TO THE SAN DIEGO UNIONTRIBUNE WE DISCOVER THE SAME MR FLEMING HAS TRIED TO AVOID PAYING HIS TAXES FOR THE PAST DECADE WE'LL GET A LOT CLOSER TO PROSPERITY MR FLEMING IF WELLTODO PEOPLE LIKE YOU PAY YOUR FAIR SHARE OF TAXES THAT GOES DOUBLE FOR TWO OF HIS FORMER WIVES KATHIE MCALISTER NO 3 AND JODILYN WALLER NO 5 BOTH WOMEN SAY THEY APPROVE OF HIS QUESTION TO PRESIDENT CLINTON BUT WHAT BOTHERED MS MCALISTER SHE SAYS IS THAT HONEST HARDWORKING TAXPAYING CITIZENS OF THIS COUNTRY ARE BEING CONVINCED THAT MR FLEMING IS A NATIONAL TAX HERO 9305280017 930528 LETTERS TO THE EDITOR WE HAVE NOT FORGOTTEN LAST SEPTEMBER MY BROTHER JOHN AND I VISITED WASHINGTON DC JOHN SPENT FIVE YEARS IN THE US ARMY FLYING HELICOPTERS I SPENT FOUR YEARS IN THE US NAVY ON BOARD SHIPS WE SERVED IN THE EARLY 1980S AND FEEL LUCKY TO HAVE SURVIVED SOME DANGEROUS SITUATIONS IT WAS THEREFORE WITH REVERENCE THAT WE STOOD IN FRONT OF THE VIETNAM MEMORIAL ON A WARM SUNDAY AFTERNOON AS WE MILLED ABOUT WE REMEMBERED A YOUNG MAN FROM OUR HOMETOWN WHO HAD BEEN KILLED IN ACTION WE USED TO SEE HIS MOTHER EVERY SUNDAY AT MASS EVENTUALLY OUR SMALL TOWN NAMED A STREET AFTER HIM HE WAS JAMES J O'SHAUGHNESSY WE SEARCHED THE DIRECTORY AND FOUND HIS NAME WHEN HE WAS KILLED HE WAS IN HIS EARLY 20S OUR TOWN CLOSTER NJ OUTSIDE NEW YORK CITY WAS WHERE MRS O'SHAUGHNESSY CONTINUED TO ATTEND MASS EVERY SUNDAY AFTER HER SON'S DEATH IT WAS WHERE A NEW GENERATION OF KIDS GREW UP ON O'SHAUGHNESSY LANE IT WAS WHERE A FAMILY A TOWN AND A PARISH WERE FOREVER CHANGED BY THE VIETNAM WAR A TOWN WHERE THE WAR WAS NO LONGER A MILLION MILES AWAY A PARK RANGER MADE EACH OF US AN ETCHING OF JAMES O'SHAUGHNESSY'S NAME AS HE DID THE ETCHING STRANGERS BEGAN TO ASSEMBLE AND QUIETLY OBSERVE JOHN AND I STOOD UNITED WITH STRANGERS PAYING HOMAGE TO A YOUNG MAN WHO DIED IN BATTLE 24 YEARS AGO THERE IS A SCHOOL OF THOUGHT TODAY THAT BY HONORING THOSE KILLED IN WAR WE GLORIFY WAR ITSELF THOSE WHO BELIEVE THAT THIS IS WHY AMERICANS OBSERVE MEMORIAL DAY OUGHT TO SPEND AN AFTERNOON AT THE VIETNAM MEMORIAL AND LEARN HOW THE SPIRIT OF A HUMAN LIFE LIVES ON AND HOW BY HONORING OUR DEAD WE GLORIFY LIFE NOT WAR ON THIS AND EVERY MEMORIAL DAY WE ALL SHOULD REMEMBER THAT THOSE WHO DIED IN BOTH THE DEFENSE OF AMERICA AND IN THE DEFENSE OF OTHER NATIONS ARE SMALLTOWN HEROES IN THEIR YOUTH THEY WENT TO WAR IN FEAR BUT WITH COURAGE IN A FARAWAY LAND IN DOING SO THEY JOINED THE ULTIMATE PROTEST OF WAR AND PAID THE ULTIMATE PRICE THEY WERE OUR FLESH AND BLOOD OUR LOVED ONES OUR NEIGHBORS OUR FRIENDS OUR YOUNG MEN AND WOMEN WHO LEFT US NEVER TO RETURN BY BRINGING THEIR SPIRITS BACK HOME IN QUIET COMMUNION WE PLACE VALUE ON EACH OF THEIR LIVES THE MOMENT MY BROTHER AND I STOOD WITH STRANGERS BEFORE OUR LOCAL HERO'S NAME HE WAS WITH US IN OUR COLLECTIVE SPIRIT FOR THAT MOMENT JAMES J O'SHAUGHNESSY WAS HOME AS AMERICANS WE EMBRACED HIM ON THAT BEAUTIFUL SEPTEMBER DAY AND SILENTLY SAID TO HIM WE HAVE NOT FORGOTTEN 9305280016 930528 LETTERS TO THE EDITOR WE'RE IN THE ARMY NOW AND WE WERE THEN HAVING JOHN LEHMAN THE REAGAN ADMINISTRATION'S SECRETARY OF THE NAVY REVIEW MY BOOK CONDUCT UNBECOMING GAYS & LESBIANS IN THE US MILITARY IS LIKE HAVING HR HALDEMAN REVIEW ALL THE PRESIDENT'S MEN SAD STORY OF GAYS IN MILITARY LEISURE & ARTS MAY 18 NOT ONLY IS HIS POINT OF VIEW UTTERLY PREDICTABLE BUT HE WAS A PARTICIPANT IN THE STORY YOU HAVE THE RIGHT TO ASSIGN ANY REVIEWER YOU PLEASE OF COURSE BUT THAT DOES NOT DEFER YOUR RESPONSIBILITY TO TELL THE TRUTH THIS MR LEHMAN DECLINED TO DO SO AND HIS REVIEW WAS PACKED WITH DISTORTIONS FIRST HE MAINTAINS THAT THE BOOK IS PREDICATED ON MANY UNNAMED SOURCES THIS SIMPLY IS NOT TRUE CONDUCT UNBECOMING USES EXTRAORDINARILY FEW UNNAMED SOURCES STORIES I RELATE ALMOST ALWAYS INCLUDE NAMES DATES TIMES AND PLACES BUTTRESSED BY EXHAUSTIVE DOCUMENTATION AND ONTHERECORD INTERVIEWS THE HANDFUL OF STORIES WITH UNNAMED SOURCES INVOLVE MILITARY PERSONNEL WHO ARE CURRENTLY ON ACTIVE DUTY AND SUBJECT TO THE MILITARY'S ANTIGAY PURGES THE VERY KIND OF PURGES SO ENTHUSIASTICALLY EXECUTED DURING MR LEHMAN'S TENURE AS NAVY SECRETARY MR LEHMAN ALSO SAYS THAT I HALLUCINATED WHEN I REPORTED ON GAY DISCOS ABOARD AIRCRAFT CARRIERS MR LEHMAN SAYS HE DOUBTS THIS IS TRUE BECAUSE HE NEVER SAW ONE GIVEN THE ANTIGAY ATTITUDES MR LEHMAN EXPRESSES IT'S NOT TERRIBLY SURPRISING THAT HE WAS NOT INVITED AGAIN THESE STORIES ARE BACKED BY ONTHERECORD INTERVIEWS THE GAY MILITARY SUBCULTURE IN VIETNAM IS SIMILARLY DOCUMENTED THE FACT THAT MR LEHMAN WAS NOT AWARE OF THE GAY SUBCULTURE DOES NOT MEAN IT DID NOT EXIST WHAT REALLY SEEMS TO ANIMATE MR LEHMAN'S DISTASTE FOR MY BOOK IS HIS ASSERTION THAT I WAS WRONG IN MY DESCRIPTION OF SOME OF THE OFFICIAL ANTIGAY ACTIONS DURING HIS TENURE EVERYTHING I ASCRIBE TO THE FORMER SECRETARY'S SERVICE IS BACKED UP WITH SPECIFIC DOCUMENTS ORDERS THAT CAME STRAIGHT FROM HIS OFFICE WHILE I CAN UNDERSTAND THAT HE MIGHT BE ASHAMED OF MUCH OF WHAT HAPPENED TO GAY PEOPLE DURING HIS TENURE ONE CANNOT OBSCURE SHAME BY DISHONESTLY DERIDING THE MESSENGER WHO REPORTS ON IT 9305280015 930528 JAPANESE TRIO IN ELECTRONICS REPORT SLUMP FUJITSU REGISTERS FIRST LOSS AS HITACHI AND TOSHIBA POST DECLINES IN PROFIT BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THREE OF JAPAN'S TOP TECHNOLOGY COMPANIES ISSUED DISMAL EARNINGS REPORTS FOR THE FISCAL YEAR ENDED MARCH 31 BUT SAID THEY EXPECT THIS YEAR WILL BRING AT LEAST A SLIGHT TURNAROUND FROM THE PROLONGED SLUMP BATTERING THE COUNTRY'S ELECTRONICS INDUSTRY FUJITSU LTD JAPAN'S LARGEST COMPUTER COMPANY POSTED ITS FIRSTEVER YEAREND CONSOLIDATED NET LOSS WHILE TOSHIBA CORP AND HITACHI LTD REPORTED CONTINUED DECLINES IN GROUP NET INCOME ON FALLING SALES DEMAND FOR COMPUTERS AND CONSUMER ELECTRONICS IS DOWN BECAUSE OF JAPAN'S RECESSION AND THE CONTINUING ECONOMIC STAGNATION IN EUROPE THE COMPANIES ALSO WERE HIT BY THE RECENT APPRECIATION OF THE YEN WHICH HAS REDUCED THE YEN VALUE OF OVERSEAS SALES AND OVER TIME WILL MAKE JAPANESE EXPORTS MORE EXPENSIVE THE RESULTS FELL WITHIN EXPECTATIONS SOME ANALYSTS SOUNDED A MILDLY OPTIMISTIC NOTE SAYING THAT THESE RESULTS SHOWED THE WORST OF THE DOWNTURN PROBABLY HAS PASSED IT LOOKS LIKE THE INDUSTRY IS TURNING BUT IT'S GOING TO BE A SLOW TURN SAID PETER WOLFF A TECHNOLOGY ANALYST WITH KIDDER PEABODY & CO IN TOKYO FUJITSU WHICH HAS SUFFERED FROM AN UNPROFITABLE SEMICONDUCTOR DIVISION AND STAGNANT COMPUTER SALES DID SLIGHTLY BETTER THAN ITS FORECAST FOR THE YEAR THE COMPANY REPORTED A CONSOLIDATED NET LOSS OF 326 BILLION YEN 3006 MILLION COMPARED WITH A 122 BILLION YEN NET PROFIT LAST YEAR SALES GREW A MEAGER 06 TO 3462 TRILLION YEN FROM 3442 TRILLION YEN LAST YEAR THE COMPANY ALSO REPORTED A PRETAX LOSS OF 161 BILLION YEN COMPARED WITH A 515 BILLION PRETAX PROFIT LAST YEAR IN MARCH FUJITSU PROJECTED SALES OF 345 TRILLION YEN A 38 BILLION YEN NET LOSS AND A 20 BILLION YEN PRETAX LOSS THE COMPANY SAID THE DIFFERENCE WAS DUE TO AN UNEXPECTED INCREASE IN OVERSEAS ORDERS FOR TELECOMMUNICATIONS EQUIPMENT AND SEMICONDUCTORS TOSHIBA AND HITACHI FARED MUCH BETTER BY COMPARISON LARGELY BECAUSE BOTH COMPANIES REPORTED STRONG GROWTH IN SALES OF HEAVY ELECTRICAL EQUIPMENT WHICH HELPED OFFSET DECLINES IN CONSUMER ELECTRONICS AND COMPUTERS HITACHI REPORTED A 39 DROP IN CONSOLIDATED NET INCOME TO 7729 BILLION YEN FROM 12761 BILLION YEN LAST YEAR ON SALES THAT DECLINED 3 TO 7536 TRILLION YEN FROM 7766 TRILLION YEN THE COMPANY'S PRETAX PROFIT FELL 37 TO 23474 BILLION YEN FROM 37488 BILLION YEN SIMILARLY TOSHIBA'S SALES FELL 2 TO 4627 TRILLION YEN FROM 4722 TRILLION YEN TRIGGERING A 48 DECLINE IN NET INCOME TO 2055 BILLION YEN FROM 3949 BILLION YEN THE COMPANY REPORTED A 25 DROP IN PRETAX PROFIT TO 8598 BILLION YEN FROM 11486 BILLION YEN LOOKING AHEAD FOR THIS YEAR FUJITSU FORECASTS A 5 DECLINE IN SALES TO 328 TRILLION YEN BUT EXPECTS TO SWING BACK TO A 50 BILLION YEN PRETAX PROFIT AND TO BREAK EVEN IN TERMS OF NET INCOME HITACHI MEANWHILE EXPECTS VIRTUALLY FLAT SALES A 108 INCREASE IN PRETAX PROFIT TO 260 BILLION YEN AND A 35 INCREASE IN NET PROFIT TO 80 BILLION YEN TOSHIBA THE MOST OPTIMISTIC OF THE THREE PROJECTS A BULLISH 37 INCREASE IN SALES TO 48 TRILLION YEN AND A 56 RISE IN NET INCOME TO 32 BILLION YEN PART OF THE DIFFERENCE IN FORECASTS IS LIKELY DUE TO DIFFERENT EXCHANGERATE ASSUMPTIONS FUJITSU AND TOSHIBA BOTH CALCULATED THEIR FORECASTS ASSUMING AN EXCHANGE RATE OF 115 YEN TO THE DOLLAR WHILE HITACHI ASSUMED A RATE OF 110 YEN TO THE DOLLAR THE YEN HAS BEEN TRADING AT AROUND 110 TO THE DOLLAR FOR SEVERAL WEEKS NOW ON THURSDAY THE JAPANESE CURRENCY CLOSED IN TOKYO TRADING AT A LITTLE MORE THAN 108 YEN TO THE DOLLAR 9305280014 930528 MARKETING & MEDIA MCGRAWHILL GETS ACCESS TO PRICINGS OF TREASURYS VIA LIBERTY BROKERAGE BY ANNE NEWMAN AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PUBLISHER MCGRAWHILL INC SEEKING TO EXPAND FURTHER ITS INFORMATION SERVICES BUSINESS TO THE FIXEDINCOME MARKET SAID IT ACQUIRED A 25 STAKE IN GOVERNMENT SECURITIES DEALER LIBERTY BROKERAGE INC OF NEW YORK LIBERTY BROKERAGE A PRIVATELY HELD COMPANY FOUNDED IN 1986 BY A GROUP OF PRIMARY GOVERNMENTSECURITIES DEALERS IS ONE OF THE LARGEST INTERMEDIARY BROKERS BETWEEN PRIMARY DEALERS FOR US TREASURY SECURITIES THE PURCHASE GIVES MCGRAWHILL ACCESS TO PRICING INFORMATION IN THE US TREASURY MARKET THE COMPANY ALREADY WHOLLY OWNS JJ KENNY CO AN INTERBROKER DEALER IN MUNICIPAL SECURITIES WHICH IT BOUGHT IN 1990 AND THE VASTLY LARGER INFORMATION AND RATINGS SERVICES PROVIDED BY STANDARD & POOR'S CORP FINANCIAL TERMS WEREN'T DISCLOSED SOME FIXEDINCOME PLAYERS SEE THE MCGRAWHILL PURCHASE AS A CLEAR SIGN THAT THE COMPANY PLANS TO CHALLENGE OTHER VENDORS OF REALTIME MARKET PRICES DIRECTLY THROUGH ITS OWN COMPUTER SCREENS ALTHOUGH THE COMPANY INSISTS THAT ISN'T ITS PLAN OTHER KEY PROVIDERS OF FIXEDINCOME MARKET QUOTES INCLUDE THE INFORMATION SERVICE UNITS OF REUTERS HOLDINGS PLC KNIGHTRIDDER INC BLOOMBERG LP AND TELERATE A UNIT OF DOW JONES & CO PUBLISHER OF THIS NEWSPAPER WE VIEW THIS AS A MOVE OF STANDARD & POOR'S TO BROADEN THEIR COVERAGE BEYOND JJ KENNY TO COMPETE WITH BLOOMBERG KNIGHTRIDDER AND REUTERS AND TELERATE FOR THE FIRST TIME SAID LAURENCE JONES PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GOVPX INC A TREASURY PRICING SERVICE OWNED BY FOUR INTERDEALER BROKERS INCLUDING LIBERTY BUT MCGRAWHILL OFFICIALS DENIED THEY PLAN TO DIRECTLY COMPETE WITH THE OTHER VENDORS IF ANYTHING WE'RE NOT TRYING TO COMPETE WE'RE TRYING TO BECOME A BACKBONE OF INFORMATION SAID JAMES R QUANDT PRESIDENT AND CHIEF EXECUTIVE OF THE KENNEY UNIT AND THE OFFICIAL WHO ENGINEERED THE LIBERTY PURCHASE MR QUANDT SAID THE COMPANY PLANS TO CONTINUE LOOKING FOR OPPORTUNITIES TO INVEST IN PRIMARY SOURCES OF FIXEDINCOME INFORMATION WHICH IT WILL THEN DISSEMINATE ITSELF OR THROUGH THE OTHER VENDORS IF THE INVESTMENT IS A MOVE TO COMPETE DIRECTLY WITH THE OTHER INFORMATION SOURCES THEN MCGRAWHILL WILL HAVE AN UPHILL BATTLE SAID MERRILL LYNCH & CO ANALYST LAUREN FINE WE DON'T NECESSARILY SEE AN OPENING FOR A NEW PLAYER IN THIS MARKET SHE SAID BUT MS FINE SAID IT MAKES SENSE FOR MCGRAWHILL TO EXPAND ITS CONTROL OF PREVIOUSLY CLOSED INFORMATION IN THE FIXEDINCOME MARKET WHILE FINANCIAL SERVICES HAS FUELED MCGRAWHILL'S FORTUNES IN RECENT YEARS MS FINE NOTED THAT ITS FIXEDINCOME INFORMATION BUSINESS IS A VERY SMALL CONTRIBUTOR COMPARED WITH THE HUGE S&P OPERATIONS SHE CALCULATES THAT THE KENNEY UNIT CONTRIBUTED LESS THAN 10 OF MCGRAWHILL'S 1992 OPERATING INCOME FOR FINANCIAL SERVICES THAT BUSINESS IN TURN GENERATED HALF OF MCGRAWHILL'S ESTIMATED 1992 OPERATING INCOME OF 350 MILLION BEFORE CHARGES SHE SAID LIBERTY HAS A SYSTEM OF MORE THAN 1000 CUSTOMER COMPUTER SCREENS THROUGH WHICH IT DISSEMINATES TRADING INFORMATION ON US TREASURY SECURITIES USING SOPHISTICATED ANALYTICAL SOFTWARE PROGRAMS ACCORDING TO A MCGRAWHILL SPOKESMAN THE ANALYTICAL SOFTWARE PRODUCED BY LIBERTY SUBSIDIARY MARKET VISION CORP COULD BE USED TO ANALYZE AND DISTRIBUTE DATA OUTSIDE OF THE TREASURY MARKET SUCH AS FOREIGN GOVERNMENT BONDS THROUGH S&P AND THE KENNEY UNIT THE COMPANY ALSO PROVIDES PRICING INFORMATION AND COMMENTARY ON MUNICIPAL BONDS FOREIGN EXCHANGE AND FOREIGN GOVERNMENT BOND MARKETS FOLLOWING MCGRAWHILL THE LARGEST STAKES IN LIBERTY ARE OWNED BY SALOMON BROTHERS HOLDING CO A UNIT OF SALOMON INC GOLDMAN SACHS & CO AND LEHMAN GSI A UNIT OF AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS THE REMAINING OWNERS INCLUDE 13 OTHER PRIMARY DEALERS THROUGH ITS KENNEY UNIT MCGRAWHILL HAS 1200 COMPUTER SCREENS AMONG ABOUT 300 CUSTOMERS THE SCREENS CARRY REALTIME PRICING CREDIT RATINGS AND OTHER INFORMATION ON MUNICIPAL BONDS AS WELL AS SOME TREASURY AND ECONOMIC DATA AND COMMENTARY MCGRAWHILL WAS DOWN 375 CENTS TO 5825 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING 9305280013 930528 CLINTON PROMISES TO RENEW CHINA'S TRADING PRIVILEGES BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SAID FOR THE FIRST TIME THAT HE WILL RENEW CHINA'S TRADE STATUS FOR ONE YEAR BUT CALL ON BEIJING TO MEET CERTAIN HUMANRIGHTS STANDARDS I BASICALLY HAVE DECIDED TO EXTEND MOST FAVORED NATION STATUS FOR A YEAR BECAUSE I WANT TO SUPPORT MODERNIZATION IN CHINA MR CLINTON SAID YESTERDAY IN RESPONSE TO A QUESTION ON CBS'S THIS MORNING THE DECISION ON TRADING PRIVILEGES HAS BEEN WIDELY EXPECTED MR CLINTON ADDED BUT I WANT TO MAKE IT CLEAR TO THEM THAT THERE HAS TO BE SOME PROGRESS ON HUMAN RIGHTS AND THE USE OF PRISON LABOR CHINA PROMISED THE US LAST YEAR THAT IT WOULDN'T USE PRISON LABOR TO MAKE GOODS SHIPPED TO THE US BUT MR CLINTON SAID THEY STILL WE THINK HAVE USED PRISON LABOR TO MAKE PRODUCTS THE WHITE HOUSE IS EXPECTED TO FORMALLY ANNOUNCE TODAY THAT THE US FOR THE FIRST TIME WOULD SAY THAT EXTENDING CHINA'S MFN STATUS BEYOND ANOTHER YEAR WOULD DEPEND ON HUMANRIGHTS CONDITIONS MOST FAVORED NATION STATUS GIVES A COUNTRY THE SAME PRIVILEGES AND TARIFF LEVELS THE US GRANTS TO MOST TRADING PARTNERS HOWEVER MR CLINTON'S COMMENTS YESTERDAY ABOUT WANTING TO WORK WITH BEIJING CONTRAST WITH HIS RHETORIC DURING THE PRESIDENTIAL CAMPAIGN AT THAT TIME 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 MR CLINTON IS SET TO ANNOUNCE TODAY THAT HE EXPECTS CHINA TO LIVE UP TO PREVIOUS COMMITMENTS IT HAS MADE IN TRADE AND ARMS PROLIFERATION BUT THAT HE WON'T TIE BEIJING'S PERFORMANCE IN THESE AREAS TO ITS TRADE STATUS CHINA HAS BEEN ON A SPENDING SPREE IN RECENT MONTHS BUYING WEAPONS FROM RUSSIA WITH HARD CURRENCY AT BARGAINBASEMENT PRICES THESE PURCHASES ARE ALARMING SOME OF CHINA'S NEIGHBORS JUST YESTERDAY THE ASSOCIATED PRESS REPORTED THAT CHINA HAS TAKEN DELIVERY OF DOZENS OF SURFACETOAIR MISSILES FROM RUSSIA IN RECENT WEEKS DESPITE US CONCERNS EXPRESSED TO MOSCOW OVER THE SALE THE ADMINISTRATION HAS BEEN SUBJECTED TO HEAVY LOBBYING BY US BUSINESS GROUPS WHICH WARN THAT IF TRADE RELATIONS WITH CHINA DETERIORATE THERE COULD BE A LOSS OF AS MANY AS 150000 US JOBS REFERRING TO CHINA'S FASTGROWING ECONOMY MR CLINTON SAID THERE'S A GREAT OPPORTUNITY FOR AMERICA THERE 9305280012 930528 GE UNIT SELLS 89 CST STAKE LOS ANGELES CST ENTERTAINMENT IMAGING INC SAID GENERAL ELECTRIC PENSION TRUST A UNIT OF GENERAL ELECTRIC CO SOLD ITS REMAINING 1689390 COMMON SHARES OF CST FOR ABOUT 35 MILLION OR ABOUT 206 A SHARE THE COMPANY SAID THE 89 STAKE WAS SOLD TO THREE INSTITUTIONAL INVESTORS AFTER THE ANNOUNCEMENT CST SHARES JUMPED 375 CENTS TO 2375 IN ACTIVE AMERICAN STOCK EXCHANGE COMPOSITE TRADING AS OF FEB 5 THE COMPANY HAD 189 MILLION SHARES OUTSTANDING CST IS IN THE BUSINESS OF ELECTRONICALLY CONVERTING BLACK AND WHITE FILM TO COLOR VIDEOTAPE 9305280011 930528 MORGAN STANLEY'S NET INCREASED 41 IN FISCAL 1ST PERIOD BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORGAN STANLEY GROUP INC SURPRISED ANALYSTS WITH A 41 INCREASE IN FISCAL FIRSTQUARTER EARNINGS REFLECTING GAINS IN BOTH ITS INVESTMENT BANKING AND TRADING OPERATIONS THE RESULTS ILLUSTRATE THE CONTINUANCE OF THE WALL STREET BOOM INTO ITS THIRD YEAR MORGAN STANLEY POSTED NET INCOME OF 1958 MILLION OR 240 A SHARE FOR ITS FISCAL FIRST QUARTER ENDED APRIL 30 THAT COMPARED WITH NET OF 1391 MILLION OR 162 A SHARE FOR THE YEAREARLIER PERIOD THE COMPANY'S RESULTS EXCEEDED ANALYSTS' FORECASTS OF A GAIN IN THE QUARTER OF 166 A SHARE TO 179 A SHARE AS TRACKED BY ZACKS INVESTMENT RESEARCH INC REVENUE FOR THE QUARTER INCREASED 18 TO 219 BILLION FROM 186 BILLION THE NEWS BOOSTED MORGAN STANLEY STOCK 4 TO ITS HIGH FOR THE YEAR OF 66 UP 275 IN DOUBLETHENORMAL TRADING VOLUME ON THE NEW YORK STOCK EXCHANGE AND TRIGGERED GAINS IN OTHER BROKERAGE SHARES THE SECURITIES INDUSTRY WAS THE SIXTHBIGGEST GAINER AMONG INDUSTRY GROUPS ON ALL EXCHANGES YESTERDAY RISING 14 FOR THE YEAR THESE STOCKS HAVE SURGED 165 MORGAN STANLEY CHAIRMAN RICHARD B FISHER SAID THE FIRM'S QUARTER WAS NOTABLE BECAUSE THE GAINS OVER THE PREVIOUS QUARTER WERE SO BROADBASED ALL THE MAJOR BUSINESSES DID WELL HE CITED CAPITAL MARKETS FINANCING ACTIVITY AND CUSTOMER TRADING ACTIVITY IN LONDON TOKYO AND THE US AS PRINCIPAL REASONS FOR THE FIRM'S STRONG QUARTERLY PERFORMANCE THE FIRM'S INVESTMENT BANKING REVENUE ROSE TO 3788 MILLION FROM 2704 MILLION IN THE YEAREARLIER QUARTER WHILE TRADING REVENUE SURGED TO 3698 MILLION FROM 2919 MILLION A YEAR EARLIER COMPENSATION ROSE TO 5242 MILLION FROM 399 MILLION REFLECTING INCREASED MARKET ACTIVITY HOWEVER REVENUE FROM MORGAN STANLEY'S JAPANESE EQUITY DERIVATIVE PRODUCTS DECLINED MR FISHER SAID AND REVENUE FROM MERCHANT BANKING DECLINED TO 105 MILLION FROM 312 MILLION IN THE 1992 QUARTER ANALYSTS AND WALL STREET OFFICIALS SAY THE INDUSTRY'S CONTINUED GOOD PERFORMANCE IS A RESULT OF THE LOWINTERESTRATE CLIMATE THE ROBUST UNDERWRITING MARKET PARTICULARLY FOR NEW ISSUES AND THE HIGH VOLUME OF STOCKMARKET TRADING BY BOTH INDIVIDUAL AND INSTITUTIONAL INVESTORS EARLIER THIS WEEK A RALLY IN BROKERAGE HOUSE STOCKS WAS KICKED OFF BY NEWS THAT QUICK & REILLY INC THE NATION'S THIRDLARGEST DISCOUNT BROKER EXPECTED ITS QUARTERLY EARNINGS TO SOAR 45 MORGAN STANLEY ALSO ANNOUNCED A DEFINITIVE AGREEMENT TO SELL ITS SWEETHEART HOLDINGS UNIT A MAKER OF FOOD SERVICE PRODUCTS CANCELING A 225 MILLION BRIDGE LOAN MADE IN 1990 THE SALE IS TO AN INVESTMENT GROUP LED BY AMERICAN INDUSTRIAL PARTNERS THE QUARTERLY EARNINGS INCLUDE A PRETAX CHARGE OF 29 MILLION IN CONNECTION WITH THE SALE 9305280010 930528 INLAND STEEL SETS ACCORD WITH STEELMAKERS UNION SWAPS RESTRICTIONS ON WORK RULES TO GAIN SECURITY NEW POWERS BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL INLAND STEEL INDUSTRIES INC REACHED A PRECEDENTSETTING LABOR PACT WITH THE UNITED STEELWORKERS THAT WILL GIVE THE UNION BROAD NEW POWERS AT THE COMPANY INCLUDING A BOARD SEAT IN EXCHANGE FOR ELIMINATING DECADESOLD WORK RESTRICTIONS THE SIXYEAR ACCORD ALSO PROVIDES A NOLAYOFF CLAUSE WHILE ALLOWING INLAND TO CUT ITS WORK FORCE THROUGH ATTRITION BY SOME 25 REACHED AT 2 AM YESTERDAY AFTER 12 WEEKS OF BARGAINING THE AGREEMENT COULD FORCE A SHOWDOWN AT OTHER STEELMAKERS WHICH HAVE RESISTED GRANTING WORKERS JOB SECURITY OR A SAY IN HOW TO RUN THEIR BUSINESS BETHLEHEM STEEL CORP ARMCO INC'S ARMCO STEEL AND NATIONAL STEEL CORP HAVE CONTRACTS THAT EXPIRE LIKE INLAND'S ON JULY 31 USX CORP'S US STEEL MUST REACH A NEW ACCORD NEXT YEAR I THINK THIS IS THE WAY OF THE FUTURE FOR THE INDUSTRY AND FOR ALL INDUSTRIES SAID JACK PARTON DIRECTOR OF THE UNION'S DISTRICT 31 AND ITS CHIEF NEGOTIATOR WITH INLAND INLAND STEEL PRESIDENT MAURICE S NELSON JR SAID WE HAVE DRAGONS TO SLAY TOGETHER AND THIS SETS THE CONTEXT FOR VERY CLOSE COMPANYUNION COOPERATION THE UNION SAID IT WAS SUCCESSFUL AT WINNING PARTICIPATION AT ALL LEVELS OF THE COMPANY BOTH IT AND THE COMPANY DECLINED TO SAY WHETHER THAT INCLUDES A BOARD SEAT BUT THOSE FAMILIAR WITH THE PLAN SAID IT DOES INLAND IN CHICAGO IS ONE OF THE ONLY INDUSTRIAL COMPANIES IN THE NATION TO GRANT THIS CHRYSLER CORP GRANTED THE UNITED AUTOWORKERS A BOARD SEAT IN 1980 BUT DECLINED TO RENOMINATE THE UNION DIRECTOR IN 1991 AT INLAND THE STEELWORKERS WILL HAVE A SAY IN MAJOR MANAGEMENT DECISIONS THOUGH THE COMPANY COULD OVERRULE THE STEELWORKERS INLAND ALSO PROMISED WORKERS JOB SECURITY REFUSING TO LAY OFF WORKERS UNLESS THE COMPANY FACES A MAJOR CRISIS THE CONTRACT ALSO INCLUDES AN INCREASE IN WAGES SOME UP FRONT SOME OVER THREE YEARS AND SOME OVER SIX YEARS THAT WOULD KEEP PACE WITH INFLATION THE UNION ALSO WON IMPROVED PENSION BENEFITS MR PARTON SAID THE STEELWORKERS GRANTED NO BREAKS TO INLAND OVER THE USE OF CONTRACT WORKERS IN EXCHANGE FOR THESE PERKS THE UNION AGREED TO SURRENDER ITS CLAIM TO MOST OF THE RESTRICTIVE WORK RULES THAT HAVE HINDERED INTEGRATED STEELMAKERS' ABILITY TO COMPETE WITH NONUNION MINIMILLS INLAND WILL BE ABLE TO REDUCE MANNING LEVELS AND LOOSEN JOB DESCRIPTIONS WE BROKE DOWN A LOT OF JURISDICTIONAL ISSUES SAID MR PARTON THE CONTRACT WILL ALSO ALLOW INLAND TO COMPLETE ITS YEAROLD PLAN OF REDUCING ITS WORK FORCE BY 25 IT HAS ALREADY MADE ALMOST HALF THE CUTS OVER THE CONTRACT'S SIX YEARS CUTS COULD BE DEEPER DEPENDING ON THE ATTRITION RATE THE TWO SIDES ALSO AGREED TO A MANAGED HEALTHCARE PLAN THAT WILL LIKELY HOLD THE LINE ON COSTS THE LONGTERM CONTRACT ANOTHER FIRST IN THE INDUSTRY CAN BE REOPENED BY EITHER SIDE AFTER THREE YEARS BUT IF COMPANY AND UNION REACH AN IMPASSE THEY WILL TAKE THEIR CASE TO ARBITRATION THE AGREEMENT HAS SOME SHORTCOMINGS IT DOESN'T FOR EXAMPLE PROVIDE THE MAGNITUDE OF INCENTIVE PAY THAT MINIMILLS USE TO SPUR WORKERS TO HIGHER PRODUCTIVITY AND NOT EVERYTHING IN THE ACCORD IS NEW LTV CORP WILL HAVE A UNION BOARD SEAT WHEN IT EMERGES FROM BANKRUPTCY COURT PROTECTION NEXT MONTH AND NATIONAL STEEL OFFERS NO LAYOFFS IT'S THE BEST THAT CAN BE EXPECTED FOR BOTH SIDES SAID R WAYNE ATWELL METALS ANALYST WITH MORGAN STANLEY HE PREDICTED THAT OTHER STEELMAKERS TOO WEAK TO TAKE A STRIKE WILL BE FORCED TO FOLLOW INLAND I'D BE SHOCKED IF THE REST OF THE COMPANIES VARY MUCH FROM THIS PATTERN HE SAID BUT HE ADDED IN TERMS OF LETTING THE UNION IN THE DOOR I'D BE ASTOUNDED IF OTHER COMPANIES ROLL OVER AND PERMIT THAT ARMCO STEEL WHERE CHIEF EXECUTIVE THOMAS GRAHAM HAS A HARDLINE HISTORY WITH THE UNION WILL PROBABLY RESIST THE UNION'S EFFORT TO COOPERATE IN DECISION MAKING US STEEL'S TALKS WITH THE UNION EARLIER THIS SPRING BROKE DOWN OVER ITS UNWILLINGNESS TO GIVE THE UNION SUCH A ROLE BOTH COMPANIES DECLINED TO COMMENT 9305280009 930528 AUTOS INDYCAR CIRCUIT PASSES A HONDA RULE' THAT BLOCKS COMPANY FROM FAST TRACK BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT WHEN THE INDIANAPOLIS 500 IS RUN SUNDAY THE ROAR OF THE ENGINES WILL BE HEARD IN 92 NATIONS GIVING THE MOST FAMOUS US AUTO RACE ENORMOUS INTERNATIONAL EXPOSURE BUT IN THE PITS THE POLITICS WILL BE PROVINCIAL THE RACING WORLD IS DEBATING A RULE THAT CRITICS SAY IS DESIGNED TO DISCOURAGE HONDA MOTOR CO FROM ENTERING THE INDY 500 NEXT YEAR AS THE FIRST JAPANESE COMPETITOR TO RACE IN THIS VENERABLE 82YEAROLD CONTEST THE RULE WAS PASSED LAST FALL AFTER HONDA'S PLANS TO ENTER INDYCAR RACING BECAME KNOWN IT WOULD REQUIRE ALL NEW ENTRANTS ON THE INDYCAR RACING SERIES AND HONDA IS THE ONLY ONE IN SIGHT TO MAKE THEIR ENGINES AVAILABLE TO OTHER RACING TEAMS HONDA SAYS THAT WOULD BE TOO COSTLY WE DIDN'T WANT ONE MANUFACTURER TO DOMINATE WITH ONE CAR EXPLAINS INDY RACER CARL HAAS WHO SITS ON THE CIRCUIT'S GOVERNING BOARD ESPECIALLY NOT WHEN THAT MANUFACTURER IS JAPANESE AND THE MARKETING STAKES ARE HIGH SAY CRITICS WHO BELIEVE THE NEW RULE SMACKS OF PROTECTIONISM THEIR PROOF RACE ORGANIZERS DID NOTHING TO STOP DOMINANCE OF THE INDY 500 BY GENERAL MOTORS CORP WHICH HAS WON THE RACE EVERY YEAR SINCE 1988 BY SUPPLYING MOST OF THE INDY TEAMS WITH CHEVYBRAND ENGINES IN FACT ONLY ONE OTHER AUTO MAKER FORD MOTOR CO IS ACTIVELY SUPPLYING INDY TEAMS WITH ENGINES THUS THE INDYCAR BOARD'S IDEA AMOUNTS TO HYPOCRISY DECLARES BOBBY RAHAL THE INDY SERIES' REIGNING CHAMPION WHO FAILED TO QUALIFY FOR THIS YEAR'S RACE IT USED TO BE IN RACING THAT YOU WELCOMED ANY CHALLENGE ON AN EQUAL FOOTING AND YOU TRIED TO BEAT IT MR RAHAL DECLARES NOW YOU TRY TO BEAT IT IN THE BOARDROOM FIRST MR RAHAL WAS TO HAVE USED A CHEVY ENGINE IN THIS WEEKEND'S INDIANAPOLIS 500 BUT HE CURRENTLY TESTS ENGINES FOR HONDA AND ALSO OWNS A HONDA DEALERSHIP THUS HE IS LIKELY TO SWITCH FROM CHEVY TO HONDA ENGINES IF HONDA DOES ENTER THE RACE NEXT YEAR BETWEEN 1986 AND 1991 HONDA DOMINATED INTERNATIONAL FORMULA ONE RACING THE DIVISION OF THE SPORT WITH THE MOST SOPHISTICATED CARS BY WINNING SIX CONSECUTIVE SERIES CHAMPIONSHIPS WITH TECHNOLOGICALLY SUPERIOR ENGINES THAT OFTEN PRODUCED MULTILAP LEADS TO A DEGREE IT WAS BORING SAYS GORDON KIRBY A COLUMNIST FOR RACER MAGAZINE BUT HONDA WITHDREW FROM FORMULA ONE RACING LAST YEAR ALONG WITH OTHER JAPANESE AUTO MAKERS HONDA IS SUFFERING FROM SAGGING PROFIT BECAUSE OF A SALES SLUMP IN BOTH JAPAN AND THE US THUS HONDA DECIDED IT DIDN'T WANT TO KEEP SHELLING OUT 50 MILLION A YEAR TO SPONSOR FORMULA ONE TEAMS INDYCAR RACING COSTS FAR LESS TO SPONSOR ABOUT 8 MILLION A YEAR FOR THE 16 RACES ON THE INDYCAR CIRCUIT AND WHILE FORMULA ONE RACING IS DOMINANT OVERSEAS INDYCAR RACING IS FAR MORE POPULAR IN THE US WHICH IS HONDA'S MAJOR MARKET FROM A MARKETING STANDPOINT IT MADE SENSE TO SPEND LESS TO GET MORE EXPOSURE WHERE IT REALLY COUNTS SINCE RIGHT NOW 65 OF THE CARS WE SELL IN THE US ARE MADE HERE WE JUST FEEL IT MIGHT BE IN OUR INTEREST TO BE IN AMERICA'S PREMIER RACING SERIES WHICH IS THE INDY SERIES SAYS THOMAS ELLIOT EXECUTIVE VICE PRESIDENT OF AMERICAN HONDA BUT THE INDYCAR CIRCUIT'S BOARD A SEVENMEMBER BODY DOMINATED BY FORD AND CHEVY DRIVERS DIDN'T WELCOME THE PROSPECTIVE NEW ENTRANT WITH OPEN ARMS UNDER THE RULE PASSED LAST FALL BY THE BOARD NEW ENGINES USED IN THIS YEAR'S RACING CIRCUIT MUST BE MADE AVAILABLE TO AT LEAST THREE CARS ON TWO DIFFERENT TEAMS EVERY YEAR AFTER THAT THE ENGINE MUST BE MADE AVAILABLE TO AT LEAST SIX CARS ON THREE DIFFERENT TEAMS PROPONENTS OF THE HONDA RULE SAY SPREADING THE TECHNOLOGICAL WEALTH HELPS KEEP THE COSTS OF INDYCAR RACING UNDER CONTROL BY GIVING NO SINGLE TEAM A LONGTERM ADVANTAGE WE WANT THE MANUFACTURERS TO PUT SOMETHING BACK INTO THE SERIES THAT WOULD BENEFIT IT IN THE LONG TERM SAYS AN INDYCAR SPOKESMAN BUT WHY WASN'T THERE CONCERN OVER GM'S DOMINANCE WE WANT ENGINE MANUFACTURERS TO COME INTO THE SERIES AS SUPPLIERS MR HAAS SAYS IF THEY ADHERE TO THAT AND THEY DOMINATE FINE RACER MAGAZINE'S MR KIRBY OFFERS A DIFFERENT EXPLANATION YOUR FORDS AND GMS ARE OBVIOUSLY INTO RACING TO WIN AND GENERATE A WINNING IMAGE HE SAYS AND THEY ARE CONCERNED GIVEN TH AMOUNT OF MONEY THAT THEY HAVE SPENT AND THE AMOUNT OF MONEY HONDA IS PREPARED TO SPEND ON R&D IRONICALLY HONDA EVEN POSES A THREAT TO GM AND FORD ON THE MADE IN AMERICA FRONT THE CHEVY AND FORD ENGINES ON THE INDYCAR CIRCUIT ACTUALLY ARE DEVELOPED AND MADE IN ENGLAND BY ENGINEERING CONCERNS UNDER CONTRACT TO THE US AUTO MAKERS BUT HONDA SAYS MR ELLIOTT HOPES EVENTUALLY TO WIN THE INDY 500 WITH A CAR THAT IS ENTIRELY DESIGNED AND BUILT IN THE US BUT SO LONG AS THE NEW INDYCAR RULES STAND HONDA SAYS IT WILL STEER CLEAR OF THE CIRCUIT NEXT YEAR MR ELLIOT SAYS AMERICAN HONDA SIMPLY CAN'T AFFORD TO PROVIDE ENGINES TO SO MANY TEAMS EVEN IF IT DIDN'T MIND SHARING HONDA TECHNOLOGY IN THE PARENT COMPANY'S THIRDQUARTER FINANCIAL REPORT PRESIDENT AND CHIEF EXECUTIVE OFFICER NOBUHIKO KAWAMOTO CRITICIZED THE NEW INDYCAR RULES AS HIGHLY STRINGENT AND EXPRESSED HOPE THAT THEY WILL BE CHANGED GM AND FORD HOWEVER SAY THEY AREN'T BACKING DOWN IN THE US SPECTATORS DEMAND CLOSE COMPETITION SAYS A SPOKESMAN FOR GM'S CHEVY MOTORSPORTS A FORD SPOKESMAN IS EVEN MORE ADAMANT I HAVE SEEN WHAT THEY HONDA HAVE DONE IN FORMULA ONE AND I AM ABSOLUTELY CERTAIN THAT IT IS NOT A PROBLEM FOR THEM TO SUPPLY THREE CARS AN ODDITY IN THE GOVERNANCE OF INDYCAR RACING HOWEVER COULD WORK TO HONDA'S ADVANTAGE THE INDYCAR CIRCUIT'S BOARD OVERSEES 15 OF THE 16 RACES ON THE CIRCUIT BUT NOT THE INDIANAPOLIS 500 ITSELF THAT IS RUN BY THE US AUTO CLUB WHICH HAS ADOPTED A SEPARATE ENGINE RULE THAT DOESN'T REQUIRE MANUFACTURERS TO SHARE DEVELOPMENTAL ENGINES WITH OTHER TEAMS SO HONDA COULD CHOOSE TO ENTER THE BIG RACE AND SKIP THE OTHERS HONDA OFFICIALS SAY THEY ARE KEEPING THEIR OPTIONS OPEN FOR NOW AND STILL HOPE THAT THE INDYCAR BOARD WILL CHANGE ITS DECISION BUT THAT COULD BE A LONG SHOT THE INDYCAR ORGANIZATION IS RUN BY THE CAR OWNERS SAYS MIKE DEVIN THE USAC'S TECHNICAL DIRECTOR WHEN THEY MAKE THE RULES THEY TRY TO MAKE THEM A LITTLE SELFSERVING 9305280008 930528 WHAT'S NEWS BUSINESS AND FINANCE THE HOUSE APPROVED A BILL THAT WOULD RAISE TAXES AND TRIM SPENDING BY 337 BILLION OVER THE NEXT FIVE YEARS THE 219213 VOTE ENDED A CLIFFHANGER THAT HAD CLINTON AIDES FRETTING UNTIL THE LAST MOMENT AND WAS A SORELY NEEDED VICTORY FOR A PRESIDENT BATTERED BY SETBACKS AND EMBARRASSMENTS IN THE PAST MONTH BUT THE BILL FACES A TOUGHER TIME IN THE SENATE CHEVRON PLANS TO SELL NEARLY A THIRD OF ITS DOMESTIC REFINING CAPACITY AND EMPHASIZE ITS GULF OF MEXICO AND WEST COAST OPERATIONS THE PETROLEUM REFINER SAID IT WILL TAKE A 550 MILLION CHARGE IN CONNECTION WITH ITS PLANS INLAND STEEL REACHED A LABOR PACT WITH THE UNITED STEELWORKERS GIVING THE UNION BROAD POWERS INCLUDING A BOARD SEAT IN EXCHANGE FOR CUTTING WORK RESTRICTIONS THE PACT COULD FORCE A SHOWDOWN AT OTHER STEELMAKERS THAT HAVE RESISTED GRANTING JOB SECURITY OR A SAY IN RUNNING THEIR BUSINESSES RJR NABISCO HIRED CONAGRA CHAIRMAN CHARLES HARPER TO SUCCEED LOUIS GERSTNER AS CHAIRMAN AND CHIEF EXECUTIVE OF THE FOOD AND TOBACCO GIANT TIME WARNER'S STOCK FELL 625 CENTS OR 16 TO 37375 SIGNALING THAT WALL STREET GENERALLY DOESN'T APPEAR TO THINK NEW SHAREHOLDER SEAGRAM WILL FIGHT TIME FOR CONTROL BUT SEAGRAM'S HISTORY AS AN AGGRESSIVE INVESTOR INDICATES THAT ITS STAKE WHICH IT CALLS FRIENDLY MAY BE FAR FROM PASSIVE THE UNITED MINE WORKERS ARE LIKELY TO EXPAND THEIR SELECTIVE STRIKE NEXT WEEK AS THEY BATTLE COAL PRODUCERS' INCREASING USE OF NONUNION WORKERS THE MOVE COULD INCLUDE MORE MINES AT COMPANIES THE UNION IS ALREADY STRIKING OR NEW TARGETS NORTHWEST AIR SAID PACTS WITH TWO UNIONS ARE EXPECTED TO REAP 428 MILLION IN LABORCOST SAVINGS OVER THREE YEARS BUT ITS GOAL OF ANOTHER 365 MILLION FROM ITS PILOTS UNION IS UNCERTAIN AND MEMBERS OF THE OTHER TWO UNIONS STILL HAVE TO APPROVE THEIR GIVEBACKS FORD MOTOR ANNOUNCED ITS THIRD PRICE INCREASE OF THE 1993 MODEL YEAR AND THE SECOND IN JUST FOUR MONTHS BUT ANALYSTS SAY THE CAR MAKER'S LATEST BOOST WILL HARDLY AFFECT SALES TOYOTA AGAIN DOMINATED THE JD POWER & ASSOCIATES QUALITY SURVEY FOR 1993 GM AND FORD RECEIVED OVERALL QUALITY SCORES HIGHER THAN ALL BUT THE THREE LARGEST JAPANESE CAR MAKERS SPRINGS INDUSTRIES SAID IT MADE PROPOSALS TO FIELDCREST CANNON AND TO THE TEXTILE FIRM'S CONTROLLING HOLDER AMOSKEAG TO ACQUIRE THEIR SHARES OUTSTANDING AMOSKEAG'S STOCK JUMPED 16 AND FIELDCREST'S ROSE 12 TOKYO'S BROAD MARKET ROSE BUT THE NIKKEI INDEX FELL THURSDAY THE NIKKEI SLIPPED 4336 TO 2085263 LONDON PRICES ROSE SLIGHTLY AS BRITAIN GOT A NEW TREASURY CHIEF IN A CABINET SHUFFLE THAT LIFTED HOPES FOR A LENDINGRATE CUT BANKS ARE BATTLING AGAINST EACH OTHER AS WELL AS THE TREASURY AND THE FED OVER HOW THE FEDERAL DEPOSIT INSURANCE CORP SHOULD DEAL WITH UNINSURED DEPOSITS OF MORE THAN 100000 THE SENATE BANKING COMMITTEE APPROVED A BILL PROVIDING FOR THE FIRST REGULATION OF GOVERNMENT SECURITIES SALES THE BILL RESTORES THE TREASURY'S LAPSED RULEMAKING AUTHORITY AND REQUIRES STUDYING THE DISSEMINATION OF PRICE INFORMATION BUT KEY HOUSE MEMBERS CALL FOR AN EVEN STRONGER BILL BONDS LEHMAN BROTHERS TREASURY INDEX 508592 OFF 226 COMMODITIES OIL 2006 A BARREL UP 17 CENTS DOW JONES FUTURES INDEX 12158 OFF 022 SPOT INDEX 12104 OFF 042 DOLLAR 10715 YEN OFF 135 16025 MARKS OFF 00253 9305280007 930528 WHO'S NEWS VENTURA COUNTY NATIONAL BANCORP VENTURA COUNTY NATIONAL BANCORP OXNARD CALIF ZELLA RUSHING 53 YEARS OLD WAS ELECTED A DIRECTOR OF THIS BANK HOLDING COMPANY FILLING A VACANCY CREATED BY THE RESIGNATION OF WE MCALEER MS RUSHING A FOUNDING DIRECTOR OF THE COMPANY'S VENTURA COUNTY NATIONAL BANK SUBSIDIARY REJOINS THE COMPANY FOLLOWING HER RETIREMENT AS CHAIRMAN OF THE PARENT IN MARCH 1992 SHE ALSO SERVES AS CHAIRMAN OF H&H OIL TOOL CO 9305280006 930528 WHO'S NEWS DAIWA BANK LTD DAIWA BANK LTD OSAKA JAPAN DAVID H DREWERY WAS ELECTED TO THE BOARD OF THIS MAJOR JAPANESE BANK MR DREWERY 55 YEARS OLD IS EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF DAIWA'S US COMMERCIAL BANKING DIVISION 9305280005 930528 LTV WINS JUDGMENT OF ABOUT 480 MILLION AGAINST USX CORP CLEVELAND LTV CORP SAID IT WON A COURT JUDGMENT ESTIMATED AT ABOUT 480 MILLION AGAINST USX CORP IN AN ANTITRUST CASE AGAINST BESSEMER & LAKE ERIE RAILROAD CO A FORMER USX UNIT LTV A CLEVELAND STEELMAKER THAT WILL EMERGE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS IN JUNE SAID THE US APPEALS COURT FOR THE THIRD CIRCUIT IN PHILADELPHIA AFFIRMED A LOWER COURT'S 1991 DAMAGE RULING IN LTV'S FAVOR THE LOWER COURT ORDER AGAINST THE RAILROAD STIPULATED DAMAGES OF 458 MILLION PLUS INTEREST FROM JULY 1989 THE JUDGMENT STEMS FROM A 1982 LAWSUIT FILED BY LTV ITS PREDECESSORS AND OTHER STEEL COMPANIES THE STEELMAKERS CLAIMED A CONSPIRACY BY FIVE LARGE EASTERN RAILROADS TO PREVENT THE TIMELY INTRODUCTION OF SELFUNLOADING ORE VESSELS ON THE GREAT LAKES LTV AND THREE OF THE DEFENDANTS REACHED A SETTLEMENT IN 1986 A FOURTH SETTLED IN 1989 B&LE IS NOW A UNIT OF TRANSTAR IN WHICH USX HAS A 44 STAKE USX WHICH SOLD B&LE IN 1988 SAID IN A RECENT FILING TO THE SECURITIES AND EXCHANGE COMMISSION THAT IT IS OBLIGATED TO REIMBURSE TRANSTAR FOR JUDGMENTS PAID BY B&LE THE RAILROAD HAD EXPECTED THE DAMAGES TO BE REDUCED OR ELIMINATED USX'S DISCLOSURE SAID IT HAD POSTED A 356 MILLION BOND TO STAY THE PREVIOUS JUDGMENT UNTIL APPEALS ARE EXHAUSTED USX SAID THE BOND REQUIRES IT TO PAY ANY FINAL JUDGMENT UP TO THE AMOUNT OF THE BOND B&LE CAN SEEK A REHEARING FROM THE THIRD CIRCUIT AND IT CAN APPEAL THE CASE TO THE US SUPREME COURT A USX SPOKESMAN SAID HE HADN'T SEEN THE APPEALS COURT RULING AND HAD NO COMMENT HE DIDN'T KNOW WHETHER THE COMPANY WOULD SEEK AN APPEAL THE SPOKESMAN SAID HOWEVER THAT HE BELIEVED THE BOND POSTED BY USX WAS A NONCASH BOND AND THAT USX HASN'T YET SET ASIDE FUNDS TO COVER THE DAMAGES THE CASE AFFECTS USX CORP'S US STEEL UNIT B&LE OFFICIALS COULDN'T BE REACHED FOR COMMENT 9305280004 930528 RJR NABISCO NAMES HARPER TO TOP POSTS CONAGRA CHAIRMAN TAPPED TO SUCCEED GERSTNER VON DER HEYDEN QUITS BY EBEN SHAPIRO AND RICHARD GIBSON STAFF REPORTERS OF THE WALL STREET JOURNAL RJR NABISCO HOLDINGS CORP NAMED CHARLES M HARPER CHAIRMAN OF CONAGRA INC CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE FOOD AND TOBACCO COMPANY RJR HAS BEEN OPERATING WITH COCHAIRMEN SINCE LOUIS V GERSTNER JR RESIGNED ABRUPTLY IN MARCH TO TAKE THE TOP SPOT AT INTERNATIONAL BUSINESS MACHINES CORP AFTER THE APPOINTMENT ONE OF THE COCHAIRMEN KARL VON DER HEYDEN RESIGNED THE OTHER LAWRENCE R RICCIARDI WAS NAMED PRESIDENT IN OMAHA CONAGRA NAMED PHILIP B FLETCHER 59 YEARS OLD TO SUCCEED MR HARPER MR FLETCHER CURRENTLY PRESIDENT OF CONAGRA AND MR HARPER'S HANDPICKED HEIR SUCCEEDED MR HARPER AS CHIEF EXECUTIVE OFFICER LAST SUMMER MR HARPER SAID IN AN INTERVIEW THAT HENRY KRAVIS WHOSE INVESTMENT FIRM CONTROLS RJR CONTACTED HIM ABOUT THE JOB SEVERAL MONTHS AGO THE EXECUTIVES KNOW EACH OTHER FROM CONAGRA'S 1990 ACQUISITION OF BEATRICE CO FROM THE FIRM KOHLBERG KRAVIS & ROBERTS CO THIS ISN'T THE FIRST TIME MR HARPER 65 HAS CONSIDERED TAKING THE HELM AT RJR HE HAS SAID MR KRAVIS DISCUSSED THE POSITION WITH HIM IN 1988 BUT HE DECLINED FOR WHAT HE SAID WERE CONCERNS ABOUT CONAGRA HOLDERS MR HARPER THROUGHOUT HIS TENURE AT CONAGRA HAS STRESSED ENHANCING SHAREHOLDER VALUE MR HARPER WHO HAS NO EXPERIENCE IN THE TOBACCO INDUSTRY TAKES OVER AT RJR AT A DIFFICULT TIME BOOMING SALES OF DISCOUNT CIGARETTES HAVE PUT PRESSURE ON INDUSTRY PROFITS LAST MONTH PHILIP MORRIS COS IN RESPONSE TO SUCH PRESSURE ANNOUNCED PLANS TO SELECTIVELY CUT MARLBORO PRICES A MOVE THAT RJR WAS FORCED TO MATCH A POSSIBLE INCREASE IN FEDERAL CIGARETTE TAXES COULD ALSO HURT TOBACCO PROFITS MEANWHILE RJR IS IN THE MIDST OF A COMPLICATED STOCK OFFERING FOR PART OF ITS NABISCO FOOD GROUP AT A TIME WHEN MANY INVESTORS ARE SHUNNING CONSUMER PRODUCTS STOCKS BECAUSE OF THE THREAT FROM PRIVATELABEL GOODS AN IMPOSING 6FOOT6 EXECUTIVE MR HARPER IS CREDITED WITH BUILDING CONAGRA INTO A 20 BILLION POWERHOUSE WITH INTERESTS RANGING FROM FROZEN FOODS TO COOKING OILS A FORMER HEAVY SMOKER MR HARPER RENOUNCED CIGARETTES AFTER SUFFERING A HEART ATTACK IN 1985 AS HE EMBRACED A STRICT DIET MR HARPER CREATED THE NOTION OF HEALTHY FOODS AND BECAME THE DRIVING FORCE BEHIND HEALTHY CHOICE FOODS NOW ONE OF CONAGRA'S PREMIER BRANDS RETAIL SALES FOR HEALTHY CHOICE THIS YEAR ARE EXPECTED TO EXCEED 1 BILLION ALTHOUGH THE BLOOM SEEMS TO BE OFF THE CONCEPT PARTICULARLY IN FROZEN DINNERS NEVERTHELESS HEALTHY CHOICE'S POPULARITY SPAWNED AT LEAST A DOZEN OTHER BRANDS NAMED HEALTHY INDUSTRY ANALYSTS WERE STUNNED BY THE ANNOUNCEMENT WHICH WAS MADE AFTER THE CLOSE OF TRADING THE SOAP OPERA AT RJR NABISCO CONTINUES SAID JOHN MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INC LEAVE IT TO HENRY KRAVIS TO DO THE DRAMATIC THING ALTHOUGH RJR IS HIRING A PROVEN MONEY MAKER IN MR HARPER THE RECENT MANAGEMENT TURMOIL AT RJR IS DISTURBING TO SOME ANALYSTS AT THE TIME OF MR GERSTNER'S DEPARTURE RJR INSISTED THE COCHAIRMEN ARRANGEMENT WAS FOR THE LONG TERM BUT INVESTORS WIDELY EXPECTED RJR TO EVENTUALLY GO OUTSIDE THE COMPANY AND NAME AN EXECUTIVE WITH EXPERIENCE RUNNING CONSUMERPRODUCTS BUSINESSES THE RESIGNATION OF MR VON DER HEYDEN IS CONSIDERED A BLOW TO RJR NABISCO THE RESPECTED CHIEF FINANCIAL OFFICER PLAYED A KEY ROLE IN CUTTING RJR'S DEBT LOAD IN HALF TO ABOUT 14 BILLION AND HIS DEPARTURE COMES ON THE HEELS OF THE RESIGNATION OF TOP NABISCO EXECUTIVE ELLEN MARRAM WHO LEFT RECENTLY TO TAKE A TOP POST AT SEAGRAM CO YOU WANT MORE CONTINUITY SAID MR MCMILLIN OF PRUDENTIAL ANALYSTS SPECULATED THAT MR VON DER HEYDEN WAS THE ODD MAN OUT BUT IN A STATEMENT MR VON DER HEYDEN SAID HE HAD PLANNED TO RETIRE FROM THE COMPANY THE RESIGNATION OF MR VON DER HEYDEN LEAVES RJR WITHOUT A CHIEF FINANCIAL OFFICER AN RJR SPOKESMEN SAID ONE WOULD BE NAMED SHORTLY GIVEN THE ACCLAIM MR HARPER WHO IS WIDELY CALLED MIKE RECEIVED FOR INTRODUCING THE HEALTHY CHOICE LINE SOME WERE SURPRISED THAT HE WENT TO WORK FOR A CIGARETTE MAKER MIKE WILL BE HARDPRESSED TO COME OUT WITH A HEALTHY CHOICE CIGARETTE SAID PHIL SOKOLOF HEAD OF THE NATIONAL HEART SAVERS ASSOCIATION A NONPROFIT GROUP THAT HAS PRAISED CONAGRA'S EFFORTS TO REDUCE FAT CONTENT IN FOOD ASKED HIS FEELING ON TAKING OVER A TOBACCO COMPANY MR HARPER SAID OBVIOUSLY IT'S NOT A MATTER OF GREAT CONCERN TO ME OTHERWISE I WOULDN'T BE DOING WHAT I'M DOING AFTER NEARLY TWO DECADES BATTLING IN THE FROZENFOOD AISLES AND IN CONAGRA'S OTHER LOWMARGIN BUSINESSES MR HARPER SAYS HE'S READY FOR THE TOBACCO WARS IT'S NOT CLEAR IF HIRING MR HARPER WHO STARTS NEXT WEEK WILL END THE MANAGEMENT TURNOVER AT RJR HE PLANS TO KEEP A HOME IN OMAHA AND RETURN THERE MOST WEEKEND MR HARPER WHOSE FISCAL 1992 SALARY AT CONAGRA WAS 127 MILLION SAID HE TOOK THE RJR JOB WITHOUT AGREEING TO A SALARY HE IS ONE OF CONAGRA'S BIGGEST INDIVIDUAL SHAREHOLDERS AND LAST YEAR ANNOUNCED PLANS TO SELL ONE MILLION OF HIS 25 MILLION SHARES MR GERSTNER WAS PAID ABOUT 3 MILLION IN SALARY AND BONUS LAST YEAR 9305280003 930528 AMERICAN AIR'S PACT WITH CANADIAN AIR IS APPROVED IN CANADA OTTAWA CANADA'S NATIONAL TRANSPORTATION AGENCY APPROVED A PROPOSED PARTNERSHIP AGREEMENT BETWEEN AMERICAN AIRLINES AND FINANCIALLY TROUBLED CANADIAN AIRLINES INTERNATIONAL LTD REMOVING ONE HURDLE STANDING IN THE WAY OF THE PLANNED VENTURE THE PLAN WOULD ALLOW AMR CORP THE PARENT COMPANY OF AMERICAN AIRLINES TO ACQUIRE A ONETHIRD INTEREST IN CANADIAN AIRLINES FOR C246 MILLION CANADIAN DOLLARS US1947 MILLION AMERICAN ALSO WOULD GAIN A 25 VOTING INTEREST IN CANADIAN THE AGREEMENT IS CONSIDERED VITAL TO THE SURVIVAL OF CANADIAN THE COUNTRY'S SECONDLARGEST AIR CARRIER AFTER AIR CANADA CANADIAN IS A DIVISION OF PWA CORP BASED IN CALGARY ALBERTA 9305280002 930528 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 BRISTOLMYERS SQUIBB CO 350 MILLION OF DEBENTURES DUE JUNE 15 2023 PRICED AS 715S AT 985 TO YIELD 7273 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 035 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED TRIPLEA BY BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH SALOMON BROTHERS INC CONTINENTAL CABLEVISION INC 400 MILLION TWOPART ISSUE OF SECURITIES PRICED THROUGH DEALERS LED BY MORGAN STANLEY & CO THE FIRST PART CONSISTING OF 100 MILLION OF SENIOR NOTES DUE AUG 15 2003 WAS PRICED AT PAR TO YIELD 8625 THE SECOND PART CONSISTING OF 300 MILLION OF SENIOR DEBENTURES DUE SEPT 1 2008 WAS PRICED AT PAR TO YIELD 9 THE SIZE OF THE TRANCHE WAS RAISED FROM A PREVIOUSLY PLANNED 200 MILLION BOTH ISSUES ARE NONCALLABLE AND ARE RATED BA2 BY MOODY'S AND DOUBLEBMINUS BY S&P FOUNDATION HEALTH CORP 125 MILLION OF NOTES DUE JUNE 1 2003 PRICED AS 7 3/4 S AT 99592 TO YIELD 781 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 17 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC HOVNANIAN ENTERPRISES INC 100 MILLION OF 975 SUBORDINATED NOTES DUE 2005 OFFERED AT 9913 THROUGH UNDERWRITERS GOLDMAN SACHS & CO AND BEAR STEARNS & CO PROCEEDS OF THE OFFERING WILL BE USED TO REDEEM THE COMPANY'S 1225 SUBORDINATED NOTES DUE 1998 AND TO REDUCE BANK DEBT NORANDA INC 200 MILLION OF DEBENTURES DUE JUNE 1 2003 PRICED AT PAR TO YIELD 8 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 191 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PILGRIM'S PRIDE CORP 100 MILLION OF SENIOR SUBORDINATED NOTES DUE AUG 1 2003 PRICED AS 10 7/8S AT 98468 TO YIELD 11125 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR FIVE YEARS THE ISSUE IS RATED SINGLEB3 BY MOODY'S AND TRIPLECPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH DONALDSON LUFKIN & JENRETTE SECURITIES CORP REVLON CONSUMER PRODUCTS CORP 200 MILLION OF SENIOR NOTES DUE JUNE 1 1999 PRICED AS 9 1/2 S AT 97784 INITIALLY TO YIELD 10 ACCORDING TO MCM CORPORATEWATCH UNDER THE TERMS OF THE OFFERING THE SECURITIES WERE TO BE REOFFERED BY FIRST BOSTON CORP AT VARIOUS PRICES HOWEVER THE ISSUE HAS BEEN SOLD OUT FIRST BOSTON SAYS THE NONCALLABLE ISSUE IS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P REVLON CONSUMER PRODUCTS IS A UNIT OF REVLON INC SHEARSON LEHMAN BROTHERS HOLDINGS INC 150 MILLION OF NOTES DUE JUNE 1 1998 PRICED AS 6 3/8 S AT 99922 TO YIELD 6393 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 105 PERCENTAGE POINTS ABOVE THE TREASURY FIVEYEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS SHEARSON LEHMAN BROTHERS HOLDINGS AND LEHMAN BROTHERS ARE UNITS OF AMERICAN EXPRESS CO STUDENT LOAN MARKETING ASSOCIATION 750 MILLION OF NOTES DUE JUNE 30 1994 PRICED AT PAR TO YIELD 362 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 004 PERCENTAGE POINT ABOVE THE TREASURY ONEYEAR BILL THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO GENERAL SIGNAL CORP 18 MILLION COMMON SHARES PRICED AT 62 APIECE THROUGH MANAGING UNDERWRITER DONALDSON LUFKIN & JENRETTE SECURITIES CORP WITH COMANAGERS FIRST BOSTON CO MORGAN STANLEY & CO SALOMON BROTHERS INC AND SHEARSON LEHMAN BROTHERS INC HOLLYWOOD CASINO CORP INITIAL OFFERING OF 51 MILLION CLASS A SHARES PRICED AT 16 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC MADECO SA INITIAL OFFERING OF 39 AMERICAN DEPOSITARY SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC PENNSYLVANIA POWER & LIGHT CO 100 MILLION OF SERIES PREFERRED STOCK OFFERED THROUGH AN UNDERWRITING GROUP CONSISTING OF FIRST BOSTON CORP GOLDMAN SACHS MERRILL LYNCH & CO AND MORGAN STANLEY & CO SONAT OFFSHORE DRILLING INITIAL OFFERING OF 155 MILLION COMMON SHARES OF THE SONAT INC UNIT PRICED AT 22 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS TANGER FACTORY OUTLET CENTERS INC INITIAL OFFERING OF 41 MILLION COMMON SHARES PRICED AT 2250 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TRINET CORPORATE REALTY TRUST INITIAL OFFERING OF 52 MILLION COMMON SHARES PRICED AT 2425 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ADVANTA CORP 184 MILLION OF HOMEEQUITYLOAN ASSETBACKED SECURITIES PRICED IN THREE PARTS THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE 90 MILLION IN CLASS A1 CERTIFICATES WERE PRICED TO YIELD 140 BASIS POINTS ABOVE TREASURYS THE CERTIFICATES HAVE AN AVERAGE LIFE OF 34 YEARS THE 57 MILLION IN CLASS A2 CERTIFICATES WERE PRICED TO YIELD 145 BASIS POINTS ABOVE TREASURYS THE CERTIFICATES HAVE AN AVERAGE LIFE OF 31 YEARS THE 29 MILLION IN CLASS A3 CERTIFICATES WERE PRICED TO FLOAT 48 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 44 YEARS ALL CERTIFICATES WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE SELLER AND SERVICER OF THE LOANS IS ADVANTA MORTGAGE CORP USA FEDERAL HOME LOAN MORTGAGE CORP 185 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES OFFERED THROUGH UNDERWRITERS INCLUDING BEAR STEARNS & CO PAINEWEBBER INC LEHMAN BROTHERS AND JP MORGAN SECURITIES INC TRUST GOLD 150 IS BACKED BY THE AGENCY'S 30YEAR 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 815 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS FEDERAL HOME LOAN MORTGAGE CORP 9375 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES GOLD 1546 IS BACKED BY THE AGENCY'S 30YEAR 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 815 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1993108 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPPED 30YEAR 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 852 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 283 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1993111 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPPED 30YEAR 8 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 9116 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 278 YEARS AOKI INTERNATIONAL CO JAPAN 300 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE JUNE 16 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 1 1/4 COUPON AT PAR VIA NOMURA BANK SWITZERLAND EACH 50000FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM JULY 1 1993 TO JUNE 9 1997 TO PURCHASE COMPANY SHARES FINAL TERMS ARE FIXED JUNE 3 FEES 1625 POINTS BANCO DO ESTADO DE SAO PAOLO SA BRAZIL 100 MILLION OF 11 EUROBONDS DUE JUNE 17 1996 AT ISSUE AND FIXED REOFFER PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD BONDS YIELD 11 SEMIANNUAL A SPREAD OF 650 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 125 POINTS PAYABLE SEMIANNUALLY BANCO SAFRA SA BRAZIL 55 MILLION OF 8 5/8 EUROBONDS DUE JUNE 3 1998 AT ISSUE AND FIXED REOFFER PRICE 99615 VIA BEAR STEARNS INTERNATIONAL LTD BONDS YIELD 872 SEMIANNUAL A SPREAD OF 450 BASIS POINTS ABOVE INTERPOLATED YIELD CURVE OF US TREASURYS TO CALL/PUT DATE CALL AND PUT OPTION EXERCISABLE ON SEMIANNUAL COUPON PAYMENT DATE IN DECEMBER 1995 FEES 1 POINT BAYERISCHE VEREINSBANK AG GERMANY 200 MILLION DUTCH GUILDERS OF 7 SUBORDINATED EUROBONDS DUE JUNE 23 2003 AT ISSUE PRICE 101 VIA RABOBANK NEDERLAND REOFFERED AT 10025 TO YIELD 696 ANNUAL A SPREAD OF 30 BASIS POINTS ABOVE DUTCH STATE LOAN FEES 1 POINT CEMENTOS MEXICANOS SA MEXICO 1 BILLION OF 8 7/8 REGISTERED EUROBONDS DUE JUNE 10 1998 AT ISSUE AND FIXED REOFFER PRICE 9953 VIA JP MORGAN SECURITIES LTD BONDS YIELD 899 SEMIANNUAL A MARGIN OF 370 BASIS POINTS OVER COMPARABLE US TREASURY NOTE FEES 1125 POINTS PAYABLE SEMIANNUALLY NORDIC INVESTMENT BANK SCANDINAVIAN AGENCY 500 MILLION SWEDISH KRONOR OF 8 1/2 EUROBONDS DUE JUNE 21 2000 AT OFFER PRICE 101325 VIA MORGAN STANLEY INTERNATIONAL LTD REOFFERED AT 9975 TO YIELD 855 FEES 1875 POINTS REPUBLIC OF ITALY SOVEREIGN 300 MILLION OF 6 5/8 EUROBONDS DUE JUNE 9 2003 AT ISSUE AND FIXED REOFFER PRICE 97915 VIA MORGAN STANLEY INTERNATIONAL LTD BONDS YIELD 692 ANNUAL A SPREAD OF 75 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 0325 POINT SEDGWICK GROUP PLC UK 415 MILLION OF 7 1/4 CONVERTIBLE BONDS DUE 2008 VIA SG WARBURG SECURITIES LTD AND NM ROTHSCHILD & SONS LTD BONDS CONVERTIBLE INTO SEDGWICK ORDINARY SHARES AT 190 PENCE A SHARE A PREMIUM OF 1585 OVER YESTERDAY'S MIDMARKET PRICE OF 164 PENCE UNLESS PREVIOUSLY REDEEMED OR CONVERTED BONDS WILL BE REDEEMED BY COMPANY ON MAY 31 2008 FEES 25 POINTS 9305280001 930528 POLITICS & POLICY US BANKING REGULATORS BOOST EFFORTS TO PUT A HALT TO DISCRIMINATORY LENDING BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL BANK REGULATORS SAID THEY ARE STEPPING UP EFFORTS TO ROOT OUT DISCRIMINATORY LENDING PRACTICES AND LISTED 11 STEPS BANKS AND THRIFTS CAN TAKE TO IMPROVE THEIR LENDING RECORDS A JOINT STATEMENT BY THE HEADS OF THE FEDERAL RESERVE BOARD THE FEDERAL DEPOSIT INSURANCE CORP THE COMPTROLLER OF THE CURRENCY AND THE OFFICE OF THRIFT SUPERVISION SAID EXAMINERS WILL CONDUCT DETAILED REVIEWS AND COMPARISONS OF LOAN AND APPLICATION FILES TO EXAMINE FOR COMPLIANCE WITH FAIR LENDING LAWS AND REGULATIONS THE REGULATORS SAID THEY WERE ACTING IN RESPONSE TO CONCERNS THAT SOME MINORITY CONSUMERS AND SMALL BUSINESS OWNERS MAY BE EXPERIENCING DISCRIMINATORY TREATMENT IN THEIR EFFORTS TO OBTAIN CREDIT FROM FINANCIAL INSTITUTIONS THE STATEMENT WARNS BANKERS THAT THE REGULATORS WILL REFER SUSPECTED VIOLATIONS OF FAIR LENDING LAWS TO THE JUSTICE AND HOUSING AND URBAN DEVELOPMENT DEPARTMENTS FOR POSSIBLE PROSECUTION THE JUSTICE DEPARTMENT HAS BROUGHT ONLY ONE FAIR LENDING CASE EVER THEY'RE PUTTING THE INDUSTRY ON NOTICE THAT THEY'RE COMING AFTER THEM SAID DEEPAK BHARGAVA OF THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW A GROUP KNOWN AS ACORN THIS IS THE TYPE OF MESSAGE THAT THE AGENCIES SHOULD HAVE STARTED PUTTING OUT YEARS AGO HE SAID THE SIGNATURE OF FED CHAIRMAN ALAN GREENSPAN WAS PARTICULARLY SIGNIFICANT UNTIL NOW MR BHARGAVA SAID MR GREENSPAN HAS BEEN MR INVISIBLE ON THE LENDING DISCRIMINATION FRONT PREFERRING TO TURN THAT RESPONSIBILITY OVER TO OTHER FED MEMBERS EARLIER THIS MONTH EUGENE LUDWIG COMPTROLLER OF THE CURRENCY ANNOUNCED THAT HIS AGENCY WHICH REGULATES NATIONAL BANKS WAS INTENSIFYING ITS ATTACK AGAINST LENDING DISCRIMINATION YESTERDAY THE REGULATORS GAVE LENDERS A LIST OF 11 STEPS THEY CAN TAKE TO IMPROVE FAIR LENDING PRACTICES THE SUGGESTIONS RANGE FROM HIRING MORE MINORITY PERSONNEL TRAINING EMPLOYEES TO BE MORE SENSITIVE TO RACIAL AND CULTURE DIFFERENCES IN OUR SOCIETY FLEXIBLE UNDERWRITING AND APPRAISAL STANDARDS GAUGED TO LOWINCOME BORROWERS MORE AGGRESSIVE MARKETING AND EDUCATIONAL PROGRAMS IN FINANCIALLY UNDERSERVED AREAS AND MORE INTENSE REVIEWS OF REJECTED LOAN APPLICATIONS SEPARATELY MR LUDWIG THE ONLY BANK REGULATOR PRESIDENT CLINTON HAS APPOINTED SO FAR TOLD THE ASSOCIATION OF BANK HOLDING COMPANIES THAT HE WANTS TO REDUCE THE REGULATORY BURDEN ON BANKS AND ALLOW BANKS TO OFFER A RANGE OF NEW SERVICES TO CUSTOMERS IN A SPEECH IN INDIANAPOLIS HE SAID BANK REGULATION MUST BE BASED ON THREE PRINCIPLES DISCIPLINE IN RISK MANAGEMENT DISINCENTIVES FOR DISCRIMINATION AND PROTECTION OF COMMUNITIES AND CONSUMERS 9305280021 930412 A LONG INNER SIEGE HOW AN ARMY LAWYER DECIDED TO END CAREER TO LIVE AS A GAY MAN ONE DUTY WAS ENFORCING BAN ON HOMOSEXUAL SOLDIERS NOW HE FIGHTS TO LIFT IT A THANKYOU NOTE FROM BILL BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO IN ANOTHER LIFE SAYS JAMES EDWARD KENNEDY I WAS AN ARMY LAWYER HE STANDS AT THE HEAD OF A CROWDED BOARDROOM ADDRESSING A LUNCHTIME MEETING OF DIRECTORS OF THIS CITY'S BAR ASSOCIATION WITH HIS RED BEARD WIRERIM GLASSES AND SLIGHT PAUNCH ROLLING THROUGH HIS SUSPENDERS IT IS HARD TO IMAGINE THE 34YEAROLD MR KENNEDY IN JUNGLE FATIGUES DOLING OUT LEGAL ADVICE TO ARMY COMMANDERS FROM A TINROOFED HUT IN HONDURAS I WAS BORN AND RAISED IN THE ARMY SINCE MY FATHER WAS A CAREER SOLDIER HE SAYS THUS I DON'T EXPECT YOU'LL BE SURPRISED TO HEAR THAT I LOVED MY TIME AS AN ARMY LAWYER MR KENNEDY'S VOICE DROPS TO A NEAR WHISPER OVER THE PAST FEW YEARS HE HAS TOLD SOME CLOSE FRIENDS AND HIS FAMILY THAT HE IS GAY BUT THIS IS THE FIRST TIME HE HAS STOOD BEFORE A GROUP OF STRANGERS AND SAID I AM A GAY MAN ALL THE OLD FEARS OF REJECTION RIDICULE AND SHAME COME FLOODING BACK AS I OWNED UP TO MY OWN ORIENTATION TOWARDS THE END OF MY TIME IN THE ARMY IT WAS PARTICULARLY PAINFUL FOR ME TO REALIZE THAT I WOULD DECIDE TO LEAVE THE ARMY AND WORK FOR CHANGE ON THE OUTSIDE HE TELLS THE LAWYERS JUST FIVE YEARS AGO CAPT KENNEDY WAS AN ARMY JUDICIAL OFFICER RESPONSIBLE AMONG OTHER THINGS FOR UPHOLDING THE MILITARY'S BAN ON GAYS AND LESBIANS NOW HE FINDS HIMSELF ON THE FRONT LINES OF THE BATTLE TO LET HOMOSEXUALS SERVE OPENLY MR KENNEDY AND MORE THAN A DOZEN OTHERS HAVE SPENT THE PAST FEW MONTHS ADVISING THE CLINTON ADMINISTRATION ON WAYS TO END THE BAN A POLICY THAT RESULTED IN THE DISCHARGE OF 5784 MEN AND WOMEN DURING MR KENNEDY'S TOUR AND SOME 80000 SINCE 1942 HE DRAFTED TWO SAMPLE EXECUTIVE ORDERS AND HELPED WRITE A BRIEFING PAPER FOR THE TRANSITION TEAM A THANKYOU NOTE FROM THE PRESIDENT SIGNED SIMPLY BILL IS TACKED TO THE WALL ABOVE MR KENNEDY'S DESK THAT MR KENNEDY SON OF A RETIRED COLONEL IS A KEY STRATEGIST IN THIS FIGHT SAYS AS MUCH ABOUT THE EVOLUTION OF THE GAY RIGHTS MOVEMENT AS IT DOES ABOUT HIS COMING TO TERMS WITH HIS OWN SEXUAL ORIENTATION IN 25 YEARS GAY LIFE IN AMERICA HAS EVOLVED FROM THE LOVE THAT DARE NOT SPEAK ITS NAME TO AN INYOURFACE CIVILRIGHTS CRUSADE PROCLAIMING WE'RE HERE WE'RE QUEER GET USED TO IT AND MR KENNEDY HAS GONE FROM BEING IN HIS WORDS A CLASSIC CLOSETCASE CONSTANTLY FIGHTING TO CONFORM TO A HETEROSEXUAL LIFESTYLE TO BECOMING A GAYRIGHTS ACTIVIST FOR MR KENNEDY COMING TO TERMS WITH BEING GAY TOOK MORE THAN A DECADE SPANNING HIS TEEN YEARS THROUGH PART OF HIS STINT IN THE ARMY WHEN HE WAS A CHILD IT WAS A FOREGONE CONCLUSION HE WOULD FOLLOW HIS FATHER OF ALL THE SONS HE LIKED THE MILITARY THE MOST SAYS PATRICK 26 ONE OF FOUR BROTHERS ON VACATIONS THE FAMILY TOURED THE GREAT BATTLEFIELDS OF EUROPE AND JIM PORED OVER BATTLE HISTORIES FASCINATED BY STRATEGY AND MILITARY POMP HIS TEEN YEARS HIS BROTHERS SAY WERE NORMAL HE BOUGHT A BUICK SKYLARK AND LIKED ROCKANDROLL BUT MR KENNEDY SAYS HE KNEW BY THE AGE OF 15 THAT HE WASN'T ATTRACTED TO WOMEN EVEN PRIOR TO PUBERTY THERE WERE BOYS I WAS VERY FOND OF AND GIRLS I WAS FRIENDS WITH BUT I DIDN'T FEEL THE SAME WAY TOWARD THE GIRLS MR KENNEDY HAD HIS FIRST SEXUAL ENCOUNTER WITH A MAN AT THE AGE OF 18 WHEN HE WAS A COMMUNITYCOLLEGE STUDENT IN LAKE FOREST ILL THE EXPERIENCE NEVER DEVELOPED INTO A RELATIONSHIP BUT IT LED MR KENNEDY TO SEEK MORE INFORMATION ABOUT HOMOSEXUALITY IN THE COLLEGE LIBRARY HE FOUND A VIDEOTAPED INTERVIEW WITH A GAY 17YEAROLD AS HE WATCHED THE YOUNG MAN TELL HIS STORY HE MADE A DECISION I SAID I CAN'T DO THAT BECAUSE HIS FAMILY WON'T TALK TO HIM HIS PEERS AT SCHOOL WON'T TALK TO HIM ANYMORE HE CAN'T GO INTO THE MILITARY' SO I JUST WENT INTO DENIAL IN 1977 HIS FATHER WAS TRANSFERRED TO HONOLULU AND MR KENNEDY ENROLLED IN THE ARMY RESERVE OFFICERS TRAINING CORPS AT THE UNIVERSITY OF HAWAII IN 1981 HE GRADUATED AS A DISTINGUISHED MILITARY GRADUATE AT THE CEREMONY HIS FATHER PINNED HIS OWN WORLD WAR II SECOND LIEUTENANT BARS ON MR KENNEDY'S UNIFORM HIS GRADUATION PRESENT WAS A GOVERNMENT MODEL COLT 45 RATHER THAN GOING INTO THE ARMY IMMEDIATELY MR KENNEDY WENT TO LAW SCHOOL AT SOUTHERN METHODIST UNIVERSITY IN DALLAS ON GRADUATION HE WAS ACCEPTED TO THE ARMY'S JUDGE ADVOCATE GENERAL'S CORPS THE CADRE OF MILITARY ATTORNEYS WHOSE JOB AMONG OTHERS IS TO ENFORCE THE MILITARY BAN ON HOMOSEXUALS DESPITE AN OCCASIONAL FEELING THAT HE WAS BEHIND ENEMY LINES LT KENNEDY MADE FRIENDS AT THE JAG SCHOOL A TRAINING GROUND FOR ARMY LAWYERS SET AMID THE NEOCLASSICAL BRICK BUILDINGS OF THE UNIVERSITY OF VIRGINIA IN CHARLOTTESVILLE HE DEVELOPED A WILDMAN'S REPUTATION DRINKING AND CAROUSING I ALWAYS THOUGHT HE WAS VERY MUCH A LADIES' MAN MOST OF THE GIRLS IN THE CLASS WERE INTERESTED IN HIM SAYS CLASSMATE GREG SUROVIC NOW AN ASSISTANT US ATTORNEY IN TEXAS LT KENNEDY WAS ASSIGNED TO WORK WITH A YOUNG ARMYSCHOOL GRADUATE FROM THE SOUTH AND DURING LONG HOURS SPENT PREPARING A MOCK COURTMARTIAL THE TWO GREW CLOSE THOUGH THE YOUNG MAN HAD JUST PASSED THE BAR AND SEEMED ENTHUSIASTIC ABOUT AN ARMY CAREER LT KENNEDY SENSED HIS NERVOUSNESS HIS NAILS WERE BITTEN DOWN TO THE QUICK ONE NIGHT STUDYING IN LT KENNEDY'S DORM ROOM FOR A TEST THE YOUNG MAN CONFIDED THAT HE WAS UNCOMFORTABLE ABOUT A BLIND DATE HIS MOTHER HAD ARRANGED HE HAD NEVER DATED WOMEN AND DIDN'T WANT TO LT KENNEDY GAVE A KNOWING LOOK BUT DIDN'T SAY A WORD ABOUT HIMSELF TWO DAYS LATER LT KENNEDY WALKED INTO THE EXAM AND WAS TOLD THAT HIS STUDY PARTNER HAD TOPPED HIMSELF THE NIGHT BEFORE TOPPED HIMSELF LT KENNEDY ASKED PUZZLED YEAH HE BLEW HIS BRAINS OUT A CLASSMATE TOLD HIM THE YOUNG MAN HAD BEEN FOUND IN HIS BEDROOM CLOSET WITH A 22CALIBER PISTOL IN HIS MOUTH THE YOUNG MAN WAS DEPRESSED APPARENTLY ABOUT HIS GRADES MR SUROVIC SAYS OF THE INCIDENT AT LEAST THAT'S THE STORY WE WERE TOLD BY THE FACULTY THE INCIDENT LEFT A DEEP IMPRESSION ON MR KENNEDY IF I'D ONLY OWNED UP WITH HIM TO WHO I WAS MAYBE THAT WOULD HAVE MADE A DIFFERENCE HE SAYS MAYBE THE TWO OF US TOGETHER COULD HAVE BEEN STRONG ENOUGH TO HANDLE THE BULL AROUND US IN THE SPRING OF 1985 LT KENNEDY SHIPPED OUT TO PANAMA AS A SENIOR LEGAL ASSISTANCE OFFICER AND TRIAL COUNSEL HE WAS SOON PROMOTED TO CAPTAIN HIS DUTIES AT THE ARMY BASE ON THE PANAMA CANAL WERE MOSTLY ADVISORY TELLING COMMANDERS HOW AND WHETHER TO PROCEED WITH ASSORTED LEGAL MESSES FROM SOLDIERS CAUGHT STEALING TO SERGEANTS LOOKING FOR INFORMATION ON GETTING A DIVORCE THEN ONE MORNING CAME THE CALL THAT CAPT KENNEDY HAD BEEN DREADING IT WAS A COMPANY COMMANDER DRAWLING I GOT THE DAMNDEST SITUATION OVER HERE MR KENNEDY RECALLS TWO OF THE COMMANDER'S MEN HAD BEEN CAUGHT IN A DESERTED BARRACKS IN A COMPROMISING POSITION CAPT KENNEDY'S HEART STOPPED HE RECALLS A SHOT OF THEREBUTFORTHE GRACEOFGODGOI ADRENALINE RUSHING THROUGH HIM WELL I'LL BE DAMNED HE RESPONDED I GUESS WE NEED SOME KIND OF INVESTIGATION OVER HERE CAPT KENNEDY REMEMBERS THE COMMANDER SAYING CAPT KENNEDY'S HEAD WAS SPINNING AS HE IMAGINED THE CONSEQUENCES THE THOUGHT OF THESE TWO KIDS GETTING DISCHARGED OUT OF THE ARMY AND HAVING TO GO HOME AND FACE THEIR MOTHERS REALLY UPSET ME MATCHING THE COMMANDER'S SPEAKING CADENCE CAPT KENNEDY THREW THE DICE THE WAY THESE CASES ARE USUALLY HANDLED THE CRIMINAL INVESTIGATORS COME OVER TO YOUR UNIT AND ASK EVERYBODY A LOT OF QUESTIONS THESE THINGS CAN GET OUT OF HAND AND BEFORE YOU KNOW IT PRACTICALLY EVERYONE ENDS UP MAKING A STATEMENT ABOUT SOME KIND OF SEXUAL MISCONDUCT THEY'VE SEEN SOMEONE DO AT SOME TIME OR ANOTHER HE TOLD THE COMMANDER IMPROVISING AS HE WENT ALONG THE COMMANDER SAID HE DIDN'T NEED THAT KIND OF HEADACHE CAPT KENNEDY SUGGESTED THAT MAYBE THE TWO YOUNG PRIVATES WERE SIMPLY HORSING AROUND AND THE SOLDIER WHO CAUGHT THEM HAD MISUNDERSTOOD YOU WERE ON THE FOOTBALL TEAM WHEN YOU WERE AT WEST POINT RIGHT HE SAID DIDN'T YOU HAVE TOWEL FIGHTS IN THE LOCKER ROOM THE FILIBUSTER WORKED BY THE END OF THE PHONE CONVERSATION THE COMMANDER HAD DECIDED NOT TO INVESTIGATE INSTEAD FOLLOWING CAPT KENNEDY'S SUGGESTION THAT HE GIVE THE PRIVATES A STERN LECTURE ON HOW THEIR BEHAVIOR COULD BE MISCONSTRUED AS HOMOSEXUAL ACTIVITY THE COMMANDER IN THE CASE COULDN'T BE LOCATED FOR COMMENT THE ONLY RECORD OF ANY SUCH INCIDENT IN CAPT KENNEDY'S PERSONAL LOGBOOK SAYS SIMPLY HOMO NO CHAPTER 15 DISCHARGE IN THIS CASE JUST GIVE THEM A TONGUE LASHING TWO KIDS DRUNK ON BEER IN THE SUMMER OF 1986 CAPT KENNEDY WAS APPOINTED STAFF JUDGE ADVOCATE TO A 1500TROOP MILITARY BASE IN A SWELTERING VALLEY NEAR COMAYAGUA HONDURAS WHERE THE US WAS BUILDING INSTALLATIONS TO STAVE OFF ANY THREAT FROM THE NICARAGUAN SANDINISTAS THE ASSIGNMENT WAS THE BIG ADVENTURE CAPT KENNEDY HAD DREAMED ABOUT SINCE HE WAS A CHILD TO PREPARE HE'D EVEN GONE TO JUNGLE WARFARE TRAINING SCHOOL IN PANAMA A GRUELING COURSE USUALLY RESERVED FOR INFANTRYMEN NOT LAWYERS I WAS WHAT THEY CALL A MUDDY BOOTS LAWYER' HE SAYS FINGERING THE CORNCOB PIPE THAT WAS A CONSTANT APPENDAGE DURING HIS TOUR IN HONDURAS I MIGHT FIND MYSELF ALONG THE BORDER IN THE JUNGLE INVESTIGATING A DEATH ONE DAY AND ADVISING HOW TO NEGOTIATE WITH THE CONTRAS THE NEXT NO ONE IN THE ARMY QUESTIONED CAPT KENNEDY'S SEXUAL ORIENTATION I KEPT A GOOD COVER HE SAYS A FRAMED PICTURE OF A BIKINICLAD HAWAIIAN COVER GIRL ADORNED HIS DESK IN HONDURAS HE DATED A WOMAN PILOT WHOM HE DECLINES TO IDENTIFY BUT THE RELATIONSHIP QUICKLY FIZZLED HE WOULD DRINK AND PARTY WITH HIS FELLOW OFFICERS WHO NICKNAMED HIM JUDGE AND HE COULD MAKE FUN OF FAGS AS WELL AS ANY OF THEM NO ONE IN THE MILITARY HE SAYS USED THE TERMS GAY OR EVEN HOMOSEXUAL I USED COVER JOKES LIKE THE POPULAR ARMY ONE HOW DO YOU SEPARATE THE MEN FROM THE BOYS IN THE MARINES WITH A CROWBAR' HE RECALLS NOW WINCING WITH EMBARRASSMENT AT THE REMARKS I KNEW I WAS TALKING ABOUT MYSELF BUT I SAID THOSE THINGS TO SUPPORT THE DENIAL IT HURT ESPECIALLY WHEN EVERYBODY LAUGHED PERHAPS TO SHOW THAT HE WAS JUST ONE OF THE GUYS CAPT KENNEDY GAVE CONSIDERABLE LATITUDE WHEN IT CAME TO OTHER SOLDIERS' PECCADILLOES BY AND LARGE WE TURNED OUR HEADS BECAUSE IT WENT ON EVERYWHERE AND IT DIDN'T AFFECT THE MILITARY MISSION HE SAYS FOR EXAMPLE WHEN HE WAS TOLD THAT A MARRIED SENIOR OFFICER WAS HAVING AN AFFAIR WITH A NURSE HE DECIDED AGAINST BRINGING CHARGES OF ADULTERY AND CONDUCT UNBECOMING AN OFFICER INSTEAD CAUTIONING THE OFFICER ON THE POSSIBLE LEGAL CONSEQUENCES DURING THE COURSE OF HIS FOURYEAR TERM CAPT KENNEDY SAYS HE USED SUCH PROSECUTORIAL DISCRETION TO SIDETRACK SOME 60 ALLEGED HOMOSEXUAL INCIDENTS KEEPING THEM FROM EVER GOING TO COURT MARTIAL OR DISCHARGE HEARINGS HE SAYS THAT WAS NO DIFFERENT FROM HIS HANDLING OF ALLEGED HETEROSEXUAL IMPROPRIETIES HIS FORMER COMMANDERS FIND THAT HARD TO BELIEVE AS FAR AS HIS SUPPRESSING ANY GAY CASES WHILE HE WAS IN HONDURAS I DON'T KNOW OF ANY SAYS COL JAMES R COKER CHIEF JAG OFFICER FOR CENTRAL AND SOUTH AMERICA AT THE TIME AND CAPT KENNEDY'S MENTOR I ALSO ACCEPT THE FACT THAT I DIDN'T KNOW MAYBE AS MUCH AS I THOUGHT I DID BUT THE RETIRED COLONEL IS DISTURBED TO HEAR THAT HIS JAG OFFICER WITHHELD THE FACT THAT HE IS GAY YOU TAKE ANYTHING DEFINED AS A CRIME AND IF YOU'RE INVOLVED IN THE SAME TYPE OF CRIME IT'S AN INHERENT CONFLICT TO ADVISE ON IT HE SAYS WHETHER IT SHOULD BE A CRIME IS IMMATERIAL WITHIN WEEKS OF HIS ASSIGNMENT TO GERMANY IN THE FALL OF 1987 CAPT KENNEDY WAS FORCED TO COME TO TERMS WITH HIS HOMOSEXUALITY UP TO THAT POINT HE HADN'T DISCUSSED HIS FEELINGS WITH ANYONE BUT THEN A COLLEGE FRIEND VISITED HIM IN GERMANY CAPT KENNEDY HAD LONG BEEN ATTRACTED TO THE FRIEND WHO HE HAD SUSPECTED MIGHT BE GAY WE HAD A WONDERFUL MEAL TOGETHER AT HIS ROOM AND GOT REACQUAINTED ALL OF A SUDDEN OUR LEGS WERE TOUCHING MR KENNEDY RECALLS HE SAID I GUESS YOU KNOW NOW I'M BISEXUAL' AND I SAID WELL I GUESS YOU KNOW I'M THE SAME WAY' MR KENNEDY DECLINES TO DISCUSS ANYTHING ELSE ABOUT THE ENCOUNTER OR TO PROVIDE HIS FRIEND'S NAME THE REUNION WITH THE COLLEGE FRIEND WAS A TURNING POINT IT EMBOLDENED HIM TO BEGIN EXPLORING THE LONGBURIED SIDE OF HIMSELF SOON AFTER CAPT KENNEDY MET A SENIOR OFFICER WHO HE THOUGHT MIGHT BE GAY HE SENSED HIS SECRET WOULD BE SAFE WITH THIS MAN I TOOK A RISK AND TOLD HIM THAT I THOUGHT I WAS GAY MR KENNEDY SAYS BUT THE OFFICER DIDN'T RESPOND IN KIND WORRIED THAT THIS ARMY PROSECUTOR MIGHT BE TRYING TO TRAP HIM INTO REVEALING HIS OWN HOMOSEXUALITY I THOUGHT SOMEHOW HE WAS INVOLVED WITH THE CRIMINAL INVESTIGATION DIVISION AND THAT WAS SOME PLOT TO SEEK OUT GAY PEOPLE SAYS THE OFFICER WHO IS STILL ON ACTIVE DUTY AND ASKED NOT TO BE IDENTIFIED PANICSTRICKEN AT HIS OWN REVELATION CAPT KENNEDY AVOIDED THE SENIOR OFFICER FOR THE NEXT SEVERAL WEEKS THEN SLOWLY THEY BEGAN BUILDING A WARY FRIENDSHIP I JUST DON'T KNOW IF I CAN TRUST YOU THE OFFICER TOLD CAPT KENNEDY ONE EVENING I SWEAR IF YOU'RE WITH CID I'LL KILL YOU CAPT KENNEDY'S RESPONSE GO AHEAD AND KILL ME IT'LL END MY PAIN THE PAIN WAS PARTICULARLY ACUTE BECAUSE EVEN AS CAPT KENNEDY WAS BEGINNING TO OWN UP TO HIS OWN SEXUAL IDENTITY HE WAS HAVING TO TAKE HIS FIRST HOMOSEXUAL CASE TO TRIAL IT INVOLVED A DRUNKEN PRIVATE ACCUSED OF FORCIBLE SODOMY AND THE FACTS WERE MURKY CAPT KENNEDY CONVINCED HIMSELF THAT HE WOULDN'T HAVE A PROBLEM PROSECUTING BECAUSE RAPE IS RAPE THERE WERE OTHER TROUBLING ASPECTS OF THE CASE THE DEFENSE WAS COMBING LOCAL GAY BARS IN ITS EFFORT TO PROVE THAT AN ALLEGED WITNESS WAS HOMOSEXUAL SO CAPT KENNEDY CALLED HIS SENIOR OFFICER FRIEND WHO FREQUENTED THE BARS AND WARNED HIM TO STAY AWAY CAPT KENNEDY WON THE CASE THOUGH THE DRUNKEN SOLDIER WAS MERELY DISCHARGED FOR BAD CONDUCT AND WASN'T FORCED TO DO ANY PRISON TIME FOR CAPT KENNEDY IT WAS A HOLLOW VICTORY I STILL DON'T KNOW WHETHER HE REALLY DID IT HE SAYS IT WAS ONE OF THOSE TIMES AS A PROSECUTOR THAT I COULDN'T MAKE THE CALL THE DEFENSE ATTORNEY DECLINES TO COMMENT IN THE WEEKS AFTER THE CASE CAPT KENNEDY'S GAY OFFICER FRIEND TOOK HIM ON A TRIP TO PARIS HE WAS VAGUE ABOUT THE ITINERARY I KNEW IF I TOLD HIM WE WERE GOING TO A GAY BAR HE WOULDN'T GO SO I DIDN'T TELL HIM UNTIL WE GOT THERE SAYS THE SENIOR OFFICER WALKING DOWN A FLIGHT OF STAIRS INTO A FACTORYSIZED DANCE CLUB CAPT KENNEDY WEARING TROPICAL CAMOUFLAGE PANTS SET FOOT IN A GAY BAR FOR THE FIRST TIME IN HIS LIFE IT WAS THE MOST WONDERFUL THING AND YET MY MIND WAS IN SUCH A FEAR MODE THAT I WAS TOO NERVOUS TO TALK TO ANYONE HE SAYS AS CAPT KENNEDY KNOCKED BACK BEER AFTER BEER WATCHING THE OTHER MEN DANCE HE FELT AS IF HE HAD CROSSED A THRESHOLD I WAS OVERWHELMED BY THIS PLACE IT MEANT FREEDOM AND EMANCIPATION AND IT ALSO MEANT I HAD TO GO I REALIZED FINALLY THAT I COULDN'T STAY IN THE MILITARY AND BE A PROSECUTOR THE MILITARY FAMILY THAT I'D KNOWN SO WELL I WAS GOING TO HAVE TO LEAVE IT WAS A PAINFUL DECISION TO REACH AND HE SOON BEGAN HAVING SECOND THOUGHTS AS WONDERFUL AS THIS NEW LIFE SEEMED IT WAS ALSO FRIGHTENING EVERY THING I KNEW ABOUT MYSELF EVERYTHING I'D BEEN TAUGHT WAS ON THE LINE EVERYTHING I HAD WAS GOING TO BE LOST NOT YET READY TO GIVE UP HIS ARMY LIFE YET TERRIFIED THAT IF HE CONTINUED EXPLORING HIS GAY SIDE HE WOULD BE DISCOVERED AND DISCHARGED CAPT KENNEDY MADE ONE LAST ATTEMPT TO CONFORM HE STARTED DATING SUSAN AMINI A GERMAN ATTORNEY WHO WAS INTERNING AT THE JAG OFFICE AND THEY BECAME ROMANTICALLY INVOLVED SUDDENLY HE HAD THE HETEROSEXUAL LIFE HE'D ALWAYS WANTED AND IT WAS WITH GREAT PRIDE THAT HE INTRODUCED MS AMINI AS HIS GIRLFRIEND AT THE NEXT MILITARY BALL BUT CAPT KENNEDY WAS UNHAPPY HE WAS VERY VERSCHLOSSEN THAT MEANS CLOSED' I COULDN'T FIGURE OUT WHAT THE PROBLEM WAS SAYS MS AMINI WHO DIDN'T KNOW CAPT KENNEDY WAS GAY UNTIL HE TOLD HER DURING THE COURSE OF INTERVIEWS FOR THIS STORY SHE CAME OVER TO MY PLACE ONE NIGHT AND SHE BROUGHT A BOOK OF POETRY WITH HER ABOUT LOVE HE SAYS AND I REALIZED HOW TRULY UNFAITHFUL I WAS BEING MY LACK OF CANDOR WAS THE CRUELEST THING I COULD DO TO HER HE ENDED THE RELATIONSHIP TELLING HER SIMPLY I DON'T LOVE YOU HE HAD DEPRESSIONS AND HE SAID IT WAS DIFFICULT FOR HIM TO DEAL WITH THE MILITARY HE SAID THAT SINCE I WAS A HAPPY PERSON I DESERVED TO BE WITH SOMEONE HAPPY SAYS MS AMINI NOW 32 AND LIVING WITH HER HUSBAND IN STUTTGART NOW I UNDERSTAND AS CAPT KENNEDY RESIGNED HIMSELF TO THE FACT THAT HE COULDN'T CONTINUE PLAYING A HETEROSEXUAL ROLE HIS GAY OFFICER FRIEND SHOWED HIM HOW HE COULD LEAD AN ACTIVE GAY LIFE IN THE ARMY THOUGH THE TWO NEVER BECAME LOVERS THE SENIOR OFFICER INTRODUCED CAPT KENNEDY TO AN UNDERGROUND NETWORK OF GAY MEN AND WOMEN IN THE SERVICE FROM HIGHRANKING OFFICERS ON DOWN BUT HE COULDN'T PERSUADE CAPT KENNEDY TO LEAD A DOUBLE LIFE IT WAS AN IRRECONCILABLE SITUATION FOR HIM THE OFFICER SAYS CAPT KENNEDY SAYS HE COULDN'T LIVE A LIFE WHERE HE CONTINUALLY WOULD BE BREAKING THE MILITARY LAWS HE'D SWORN TO UPHOLD BOTH FOR HIS OWN SENSE OF MORAL RECTITUDE AND FEAR OF GETTING CAUGHT PUNISHED AND HUMILIATED ACCORDING TO SEVERAL PEOPLE WHO WORKED WITH HIM CAPT KENNEDY WAS DOING AN EXCELLENT JOB AS A PROSECUTOR IN GERMANY HE TOOK 36 CASES TO TRIAL IN GERMANY RAPE ROBBERY ASSAULT KIDNAPPING AND WON THEM ALL ARMY RECORDS SHOW I CAN SEE THAT BEING GAY COULD HAVE CAUSED HIM PERSONAL CONFLICT BUT THERE WASN'T ANY INDICATION THAT IT CAUSED HIM PROFESSIONAL CONFLICT SAYS STEVE NUTTER WHO WAS IN CHARGE OF THE CRIMINAL INVESTIGATION DIVISION AT KARLSRUHE ARMY BASE WHILE MR NUTTER NOW RETIRED SUPPORTS THE BAN HE ADDS THAT MANY GAYS AND LESBIANS ARE ABLE TO MAKE IT TO RETIREMENT WITHOUT BEING TOTALLY IN THE CLOSET MY EXPERIENCE TELLS ME THE MILITARY NEVER WENT OUT TRYING TO TRAP GAY PEOPLE BUT THAT THE CASES WE DID PURSUE WERE THOSE INCIDENTS THAT COULDN'T BE IGNORED OR WHERE THE COMMANDER HAD A PERSONAL FEELING AGAINST IT BUT CAPT KENNEDY COULDN'T KEEP UP THE ACT ONE DAY IN JULY SITTING IN HIS APARTMENT THAT OVERLOOKED A FIELD OF SUNFLOWERS ALONG THE RHINE HE PUT ON HIS FAVORITE SUZANNE VEGA SONG THE QUEEN AND THE SOLDIER AND COMPOSED A LETTER TO HIS FATHER WHO SERVED IN THE ARMY FOR 32 YEARS HE TOLD HIS FATHER HE WAS RESIGNING BUT DIDN'T MENTION THE REASON WEEKS LATER HIS FATHER'S RESPONSE ARRIVED IT WAS A MAGAZINE AD OF A YOUNG ATHLETE WALKING OUT OF A WOODPANELED LOCKER ROOM INTO THE SUNLIGHT AT THE BOTTOM WAS THE SLOGAN JUST DO IT THE RETIRED COLONEL KNEW ONLY THAT HIS SON WAS UNHAPPY I FRAMED THE AD AND PUT IT ON MY DESK AND WHENEVER ANYONE WOULD ASK ME WHY I WAS LEAVING I'D TURN IT AROUND AND SAY MY DAD SENT ME THIS' SAYS MR KENNEDY WHO SPENT SIX MONTHS WAITING TO MUSTER OUT CHAINSMOKING AND DROPPING 30 POUNDS IN THE PROCESS CAPT KENNEDY CONFIDED IN ONLY ONE STRAIGHT PERSON IN THE ARMY ABOUT THE TRUE REASON FOR HIS DEPARTURE AN ARMY PSYCHIATRIST NAMED JEFFREY HARDEN CAPT KENNEDY HAD MADE FRIENDS WITH THE DOCTOR WHILE WORKING ON A CHILDABUSE CASE AND HAD SPENT MANY EVENINGS ATTENDING BIBLE STUDIES AT MAJ HARDEN'S HOME IN HEIDELBERG WHAT HE WANTED TO KNOW WAS WHETHER I THOUGHT HOMOSEXUALITY WAS A SIN OR NOT RECALLS DR HARDEN WHO REMINDED HIM OF THE BIBLE'S MESSAGE THAT ALL MEN ARE SINNERS THERE WAS CLEARLY CONFLICT IN HIM BUT I SENSED HE WAS RESOLVED TO THAT I THINK THAT HE STARED PENSIVELY AT THE CLOSET DOOR BEFORE HE CAME OUT BUT ONCE HE FINALLY CAME OUT HE WASN'T LOOKING OVER HIS SHOULDER ON JANUARY 10 1990 CAPT JAMES EDWARD KENNEDY WAS HONORABLY DISCHARGED FROM THE US ARMY HE MOVED TO NEW YORK TO GET AN MBA AT NEW YORK UNIVERSITY AND ON HIS FIRST VISIT TO MONSTER A GAY BAR IN THE VILLAGE MET MANNY SILVA HE STILL HAD THE MILITARY BEHAVIOR VERY STRAIGHT AND VERY DIFFERENT SAYS MR SILVA ON THEIR FIRST VACATION TOGETHER THEY VISITED WEST POINT ON ST PATRICK'S DAY 1991 THEY CELEBRATED THEIR FIRST ANNIVERSARY ENCOURAGED BY MR SILVA'S EXPERIENCE COMING OUT TO HIS OWN FAMILY IN THE DOMINICAN REPUBLIC MR KENNEDY TOLD HIS OWN FAMILY HIS MOTHER WAS THE FIRST TO LEARN AND HER REACTION WAS PRETTY STRONG HE SAYS IT WAS UNBELIEVABLE THE THINGS SHE WOULD SAY ABOUT HOMOSEXUALITY MR SILVA SAYS BUT THEN JAMES EXPLAINED TO HER IT WASN'T HER FAULT BECAUSE I TOLD HIM TO SAY THAT AND THEN SHE TALKED ABOUT GETTING USED TO IT LITTLE BY LITTLE MRS KENNEDY DECLINED TO BE INTERVIEWED MR KENNEDY'S BROTHERS TOOK THE NEWS MORE IN STRIDE ALL I TOLD HIM WAS THAT I LOVE HIM AND NO MATTER WHAT DECISION HE WAS GOING TO MAKE IT WOULDN'T AFFECT OUR FRIENDSHIP SAYS HIS BROTHER MICHAEL 26 WHO WORKS FOR A CHRISTIAN GROUP NEAR LOS ANGELES BUT I ALSO TOLD HIM THAT I SEE HOMOSEXUALS AS PEOPLE WHO CHOOSE A LIFESTYLE MORE THAN A GROUP THAT DESERVES PREFERENTIAL TREATMENT NOW ONLY MR KENNEDY'S FATHER WAS IN THE DARK THE RETIRED COLONEL FELL SILENT WHEN HE GOT THE CALL WHEN MR KENNEDY ASKED WHAT HE THOUGHT HIS FATHER SAID HE WAS DISAPPOINTED SOMETHING TELLS ME THAT AFTER A COUPLE OF GLASSES OF WINE YOU'LL GET OVER IT MR KENNEDY SHOT BACK HIS FATHER LAUGHED I STILL LOVE MY SON COL JAMES KENNEDY 68 SAYS TODAY BUT ADDS THAT HE IS REPULSED BY HOMOSEXUALITY I'M REPULSED BY WHAT HE'S DOING PARTICULARLY FOR HIS BEING AN ADVOCATE FOR OTHERS I DON'T BELIEVE GAYS SHOULD BE IN THE MILITARY IF THEY ARE THERE NOW THEY SHOULD STAY IN THE CLOSET MR KENNEDY'S INVOLVEMENT IN THE EFFORT TO LIFT THE MILITARY BAN ON GAYS BEGAN AFTER HE MOVED TO SAN FRANCISCO AND JOINED A GROUP OF GAY AND LESBIAN ATTORNEYS AT A RECEPTION SHORTLY AFTER THE CLINTON VICTORY HE MET A CONGRESSIONAL AIDE WHO GOT HIM INVOLVED WITH THE MILITARY FREEDOM PROJECT WHICH HAD JUST FORMED A WORKING GROUP OF GAY LAWYERS ACTIVISTS AND POLITICIANS TO ADVISE THE CLINTON TRANSITION TEAM RECENTLY WITH SENATE HEARINGS ON THE BAN UNDERWAY MR KENNEDY WROTE AN 11PAGE MEMORANDUM FOR WITNESSES DETAILING THE LEGAL OPTIONS PRESIDENT CLINTON HAS TO LIFT THE BAN IT IS AN ADVENTUROUS TIME FOR MR KENNEDY FILLED WITH LOTS OF CROSSCOUNTRY CONFERENCE CALLS AND LONG NIGHTS SPENT IN LEGAL LIBRARIES GATHERING AMMUNITION STILL SITTING AT HOME ONE RECENT SATURDAY NIGHT CHATTING WITH FRIENDS AFTER SEEING THE MILITARY COURTROOM DRAMA A FEW GOOD MEN MR KENNEDY GROWS MELANCHOLY I MISS IT YOU KNOW HE SAYS OF HIS FORMER LIFE BUT HE SAYS HE COULDN'T LIVE AGAIN AS AN ARMY LAWYER FEARING CONSTANTLY THAT SOMEONE WOULD FIND OUT ABOUT HIM MY WHOLE LIFE IS DEFINITELY BETTER NOW BECAUSE I'M TRUE TO MYSELF AND I'M HONEST WITH OTHERS HE SAYS THAT'S MUCH MORE IMPORTANT TO ME THAN LIVING A LIE THE THOUGHT COMES FLOODING BACK TO HIM AS HE SPEAKS TO THE SAN FRANCISCO BAR MEETING AS THEY LEARN THAT THE MAN ON THEIR RIGHT IS GAY THE WOMAN ONE OFFICE DOWN IS A LESBIAN THE COMMANDER THEY RESPECT SO MUCH IS BISEXUAL MR KENNEDY TELLS THE GROUP THE MAJORITY IN THE MILITARY WILL HAVE NOTHING BUT SUPPORT FOR THEIR PEERS SUBORDINATES AND SUPERIORS SEE RELATED LETTERS LETTERS TO THE EDITOR MANY GOOD SOLDIERS SERVE UNDER A STIGMA WSJ MAY 28 1993 9304120017 YY93 MM05 9305270166 930527 INTERNATIONAL WHO GAINS AND WHO LOSES IF THE US TOUGHENS ITS TRADE RULES FOR CHINA BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BY THE CLOSE OF THIS WEEK PRESIDENT CLINTON IS EXPECTED TO EXTEND CHINA'S CURRENT TRADING RIGHTS BUT WITH A WARNING IF THE ASIAN GIANT DOESN'T IMPROVE ITS HUMANRIGHTS RECORD AND ABIDE BY EXISTING ACCORDS ON TRADE PRACTICES AND ARMS SALES IT WILL LOSE ITS MOSTFAVORED NATION TRADE STATUS A YEAR FROM NOW HERE IS WHY TRADE POLICY IS BEING USED IN AN ATTEMPT TO IMPROVE CHINA'S HUMAN RIGHTS BEHAVIOR AND WHAT THE CONSEQUENCES COULD BE WHAT IS MFN TRADE STATUS AND WHO GETS IT DESPITE ITS EXCLUSIVESOUNDING NAME MOSTFAVORED NATION IS THE BASIC ACCESS THAT THE US GRANTS TO NEARLY ALL ITS TRADING PARTNERS UNDER MFN THE BEST TARIFF TERMS EXTENDED TO ANY TRADING PARTNER MUST BE EXTENDED TO ALL US TRADING PARTNERS EVEN UNSAVORY REGIMES SUCH AS LIBYA AND IRAQ GET MFN THOUGH TRADE EMBARGOES AND OTHER RESTRICTIONS BLOCK MOST TRADE WITH THEM AND THE US GRANTS MFN WITHOUT MUCH DEBATE TO SUCH HUMANRIGHTS ABUSERS AS BURMA IS THIS THE FIRST TIME THE U S HAS USED MFN TO PURSUE POLICY GOALS NO THE 1974 JACKSONVANIK BILL TIED A COUNTRY'S MFN STATUS TO ITS EMIGRATION PRACTICES REQUIRING YEARLY CERTIFICATIONS FOR CERTAIN NATIONS THE LAW WAS AIMED AT THE FORMER SOVIET UNION AND USED WITH VARYING SUCCESS TO PRESSURE MOSCOW INTO PERMITTING SOVIET JEWS TO DEPART FOLLOWING THE 1989 MURDER OF PRODEMOCRACY STUDENTS IN BEIJING'S TIANANMEN SQUARE BY CHINESE SOLDIERS CONGRESS TRIED TO USE MFN AS A LEVER TO IMPROVE CONDITIONS IN CHINA IN 1990 LAWMAKERS INCORPORATED THE ISSUES OF ARMS SALES AND TRADE PRACTICES PRESIDENT BUSH VETOED THESE BILLS WHAT WILL CONGRESS DO THIS YEAR MOST CONGRESSIONAL DEMOCRATS WILL GO ALONG WITH THE PRESIDENT AS LONG AS HE SETS TOUGH CONDITIONS WE'VE ALWAYS WANTED EXECUTIVE BRANCH INITIATIVE ON THIS SAYS REP NANCY PELOSI A SPONSOR OF THE HOUSE BILL MFN CAN BE AN EFFECTIVE TOOL FOR LEVERAGE IF THE CONDITIONS ARE REASONABLE AND ACHIEVEABLE AND IF YOU HAVE SOMETHING THEY WANT ACCESS TO OUR MARKET ADDS THE CALIFORNIA DEMOCRAT IF CHINA'S MFN STATUS ISN'T RENEWED NEXT YEAR WHO GETS HURT MORE THE US OR CHINA BOTH WOULD SUFFER THE BIG LOSERS WOULD BE US CONSUMERS THEY WOULD HAVE TO PAY SUBSTANTALLY MORE FOR THE CLOTHES SHOES AND TOYS THAT CHINA SHIPS TO THE US ON SOME APPAREL ITEMS THE TARIFF WOULD RISE TO ABOUT 55 FROM ABOUT 15 THEN CHINA HAS WARNED THAT IT WOULD RETALIATE BY CUTTING BACK ON THE 75 BILLION OF US PRODUCTS IT BUYS FROM THE US MOSTLY HIGHTECHNOLOGY EXPORTS SUCH AS AIRCRAFT AND TELECOMMUNICATIONS EQUIPMENT NICHOLAS LARDY AN ECONOMIST AT THE UNIVERSITY OF WASHINGTON ESTIMATES THAT IF TRADE TIES WITH CHINA SOUR IT COULD COST THE US AS MUCH AS 150000 HIGHTECH JOBS BUT CHINA ALSO WOULD PAY A PRICE THE LOSS OF US BUSINESS WOULD SPARK HIGHER UNEMPLOYMENT PARTICULARLY ALONG CHINA'S DYNAMIC SOUTHEAST COAST WHAT WOULD AMERICA'S ALLIES DO IF MFN WERE REVOKED NONE OF THEM WOULD RUSH TO JOIN THE US EFFORT AND SOME EUROPEAN COMPANIES COULD GAIN MANY OF THE US'S TRADING PARTNERS INCLUDING BRITAIN JAPAN AND HONG KONG FEAR THAT SUCH A MOVE WILL DISRUPT OVERALL TRADING RELATIONSHIPS AND COULD DESTABILIZE THE PROSPEROUS PACIFIC RIM REGION SOME LOWWAGE COUNTRIES SUCH AS THAILAND THE PHILIPPINES AND INDONESIA WOULD TRY TO SELL MORE OF THEIR OWN INEXPENSIVE PRODUCTS TO THE US BUT THE US HAS QUOTAS ON SUCH PRODUCTS SO SUBSTITUTION WOULD BE LIMITED AT LEAST IN THE SHORT RUN THERE WOULD BE A RUSH TO TAKE AWAY AMERICAN DOMINANCE OF CHINA'S HIGHTECH MARKET AIRBUS INDUSTRIE THE EUROPEAN AIRCRAFT CONSORTIUM WOULD MOVE TO REPLACE BOEING CO 9305270165 930527 WHO'S NEWS DIED HENRY PANASCI 95 COFOUNDER WITH HIS SON HENRY PANASCI JR OF FAY'S INC A RETAIL DRUGSTORE CHAIN ON TUESDAY IN SYRACUSE NY 9305270164 930527 WHO'S NEWS MEDAREX INC MEDAREX INC PRINCETON NJ THIS DEVELOPER OF DRUGS TO IMPROVE THE IMMUNE SYSTEM NAMED CLARK F SPRINGGATE 46 YEARS OLD TO THE NEW POSITION OF VICE PRESIDENT AND MEDICAL DIRECTOR DR SPRINGGATE PREVIOUSLY WAS MEDICAL DIRECTOR AND VICE PRESIDENT OF OPERATIONS AND PRODUCT DEVELOPMENT FOR THE CLINICAL RESEARCH GROUP OF TSI CORP WORCESTER MASS 9305270163 930527 WHO'S NEWS NATIONAL CONVENIENCE STORES INC NATIONAL CONVENIENCE STORES INC HOUSTON LIONEL SOSA 54 YEARS OLD WAS NAMED A DIRECTOR OF THIS RETAIL CONVENIENCE STORE THE ELECTION OF MR SOSA CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ADVERTISING AGENCY SOSA BROMLEY AGUILAR & ASSOCIATES IN SAN ANTONIO INCREASES THE BOARD TO EIGHT MEMBERS UNDER ITS RECENTLY APPROVED REORGANIZATION PLAN THE COMPANY SAID IT WOULD EVENTUALLY INCREASE THE BOARD'S SIZE TO EIGHT MEMBERS 9305270162 930527 INTERNATIONAL DAIMLERBENZ HOPES TO KEEP DIVIDEND LEVEL SPECIAL TO THE WALL STREET JOURNAL STUTTGART GERMANY THE CHAIRMAN OF DAIMLERBENZ AG TOLD SHAREHOLDERS AT THE ANNUAL MEETING THAT THE INDUSTRIAL COMPANY IS WILLING TO DIP INTO CASH RESERVES TO KEEP ITS DIVIDEND STEADY EDZARD REUTER SAID DAIMLER HAS REASONS TO HOPE THAT IT CAN HOLD ITS 1993 DIVIDEND UNCHANGED AT 13 MARKS 799 THE OFFICIAL CAUTIONED HOWEVER THAT THE FINAL DIVIDEND DECISION WILL COME WHEN FURTHER BUSINESS TRENDS SHOW THEMSELVES MORE CLEARLY HE ADDED THAT HE SEES STRONG CHANCES FOR AN IMPROVEMENT IN RESULTS DURING THE REMAINDER OF THE YEAR FOLLOWING A DISAPPOINTING FIRST QUARTER THE COMPANY'S HOPEDFOR IMPROVEMENT ISN'T BASED ON PREDICTIONS OF AN ECONOMIC RECOVERY HE SAID INSTEAD IT IS BASED ON AN EXPECTED SPURT IN CAR SALES WHEN THE NEW CCLASS COMPACT SEDANS ARE INTRODUCED BY DAIMLER'S MERCEDESBENZ AG UNIT NEXT MONTH THE COMPANY SAID SUBSEQUENT QUARTERS WON'T HAVE AS MUCH PROVISIONING FOR COSTS OF ITS AMBITIOUS LAYOFF PROGRAM MR REUTER SAID THAT WAS A MAJOR REASON THE COMPANY'S FIRSTQUARTER GROUP NET INCOME PLUNGED 96 TO 20 MILLION MARKS HE SAID HE COULDN'T FORECAST FULLYEAR RESULTS BUT DESCRIBED THE DROP IN FIRSTQUARTER RESULTS AS REASON FOR WORRY AND CONCERN DAIMLER ALSO SAID THAT ITS MERCEDES UNIT WILL CUT 20 OF ITS MANAGEMENT STAFF IN AN EFFORT TO CONTROL COSTS MERCEDES PREVIOUSLY HAD ANNOUNCED IT WILL CHOP ITS MANAGEMENT HIERARCHY TO FOUR LEVELS INSTEAD OF SIX DAIMLER PLANS TO CUT ITS OVERALL WORK FORCE BY 15000 WORKERS GROUPWIDE THIS YEAR FROM 376470 WORKERS AT THE END OF 1992 LAST YEAR DAIMLER ELIMINATED MORE THAN 18000 JOBS MERCEDESBENZ EXPECTS THAT SALES THIS YEAR WILL BE SLIGHTLY BELOW 1992 LEVELS OF 665 BILLION MARKS ALSO AT THE MEETING SHAREHOLDERS LEVELED HEAVY CRITICISM AT FRANZ STEINKUEHLER THE DAIMLER SUPERVISORY BOARD MEMBER AND FORMER PRESIDENT OF THE POWERFUL IG METALL METAL WORKERS UNION WHO RESIGNED HIS UNION POST TUESDAY AMID ACCUSATIONS OF INSIDER TRADING MR STEINKUEHLER ADMITTED TO BUYING AND SELLING STOCKS IN TWO COMPANIES CLOSELY LINKED TO DAIMLER BUT DENIED TRADING ON INSIDE INFORMATION HE WAS NOT AT THE MEETING 9305270161 930527 WHO'S NEWS DAYTON HUDSON CORP DAYTON HUDSON CORP MINNEAPOLIS WILLIAM W GEORGE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MEDTRONIC INC WAS NAMED A DIRECTOR OF THIS RETAILER FILLING A VACANCY THERE ARE 13 BOARD MEMBERS 9305270160 930527 HOECHST MUST FACE SUIT AGAINST INSURERS IN NORTH CAROLINA SOMERVILLE NJ A NEW JERSEY APPEALS COURT RULED THAT A DISPUTE BETWEEN HOECHST CELANESE CORP AND ITS 95 INSURANCE CARRIERS ABOUT WASTE CLEANUP MUST BE SETTLED IN THE NORTH CAROLINA COURTS HOECHST CELANESE HAD FILED SUIT IN NEW JERSEY STATE COURT IN 1989 AGAINST THE INSURANCE CARRIERS ASKING THE COURT TO FORCE THE CARRIERS TO DEFEND AND INDEMNIFY HOECHST CELANESE IN A SERIES OF CLEANUP CASES INVOLVING 94 SITES INCLUDING 19 IN NEW JERSEY AT STAKE IN THE CASE ARE SEVERAL MILLION DOLLARS OF CLEANUP EXPENSES HOECHST CELANESE A UNIT OF HOECHST AG OF GERMANY HAS MAINTAINED THE CASES SHOULD BE HEARD IN NEW JERSEY COURTS AND THE CHEMICAL COMPANY SAID IT WOULD APPEAL THE DECISION WE BELIEVE THAT SINCE WE ARE A NEW JERSEY CORPORATION OUR CASE OUGHT TO BE HEARD HERE SAID A HOECHST CELANESE SPOKESWOMAN HOECHST SAID IT WOULD REQUEST THE RIGHT TO APPEAL THE DECISION TO THE NEW JERSEY STATE SUPREME COURT HOECHST CELANESE ALSO WANTED THE CASE IN THE NEW JERSEY COURTS BECAUSE OF THE STATE COURT'S FAMILIARITY WITH COMPREHENSIVE ENVIRONMENTAL CASES INVOLVING INSURANCE COMPANIES THERE IS GREAT FAMILIARITY OF THE COURTS IN NEW JERSEY ON HOW TO HANDLE COMPREHENSIVE CASES LIKE THIS SAID MICHAEL DORE ATTORNEY FOR HOECHST CELANESE THE STATE COURTS HAVE DEVELOPED A GREAT DEAL OF LAW CONCERNING THIS ISSUE AND HAVE GREAT FAMILIARITY WITH THESE KINDS OF CASES THE NEW JERSEY APPEALS COURT EXPLAINED THAT A STATE COURT IN CLEVELAND COUNTY NC HAS ALREADY AGREED TO HEAR THE CASE AND IT DIDN'T WANT TO START A CONCURRENT HEARING OF THE SAME CASE IN A NEW JERSEY COURT LAWYERS FOR HOECHST CELANESE ARGUED THAT THE TWO COURTS COULD COORDINATE THE CASES SO THAT THEY COULD BE HEARD IN NEW JERSEY ONE OF THE HOECHST CELANESE INSURERS HAD PREVIOUSLY FILED SUIT IN THAT COURT IN CONNECTION WITH THE INDEMNIFICATION 9305270159 930527 WHO'S NEWS TRANSALTA CORP TRANSALTA CORP CALGARY ALBERTA MICHAEL PAVEY 46 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE UTILITY HOLDING COMPANY AS CHIEF FINANCIAL OFFICER HE SUCCEEDS HARRY SCHAEFER 56 WHO CONTINUES AS CHAIRMAN AND A DIRECTOR MR PAVEY WHO WAS VICE PRESIDENT OF REGULATORY SERVICES RETAINS HIS RESPONSIBILITY FOR REGULATORY MATTERS 9305270158 930527 WHO'S NEWS DEERE & CO DEERE & CO MOLINE ILL ARTHUR L KELLY MANAGING PARTNER OF KEL ENTERPRISES LTD A CHICAGO INVESTMENT AND HOLDING COMPANY WAS NAMED TO DEERE'S BOARD THE ADDITION OF MR KELLY INCREASES THE SIZE OF THE FARM LAWN AND INDUSTRIAL EQUIPMENT MAKER'S BOARD TO 12 MEMBERS 9305270157 930527 WHO'S NEWS UNION BANK UNION BANK SAN FRANCISCO KANETAKA YOSHIDA 55 YEARS OLD VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF THIS BANK WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS TAISUKE SHIMIZU 57 WHO WILL STEP DOWN JUNE 16 AND RETURN TO UNION BANK'S PARENT BANK OF TOKYO TAKAHIRO MORIGUCHI 49 GENERAL MANAGER OF BANK OF TOKYO'S CAPITAL MARKETS DIVISION 2 WILL SUCCEED MR YOSHIDA AS VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER 9305270156 930527 WHO'S NEWS ANGELICA CORP ANGELICA CORP ST LOUIS MICHAEL E BURNHAM 41YEAROLD PRESIDENT OF THE COMPANY'S LIFE UNIFORM & SHOE SHOPS UNIT WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT OF THIS UNIFORM MAKER AND TEXTILE RENTAL AND LAUNDRY SERVICES CONCERN 9305270155 930527 WHO'S NEWS SPECTRAN CORP SPECTRAN CORP STURBRIDGE MASS RICHARD M DONOFRIO SENIOR VICE PRESIDENT OF SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP WAS NAMED A DIRECTOR OF THIS MAKER OF GLASS OPTICALFIBER INCREASING BOARD MEMBERSHIP TO SEVEN 9305270154 930527 LEISURE & ARTS FILM A BOY'S LIFE IN POSTWAR ENGLAND BY JULIE SALAMON EVERY YEAR MOVIE CRITICS COMPLAIN ABOUT HOLLYWOOD'S SUMMER OFFERINGS TOO MUCH MORONIC MAYHEM TOO LITTLE PLEASURE MEANWHILE WE EAGERLY AWAIT THE SMALL MOVIES THE INTELLIGENT IMPORTS OR INDEPENDENT FILMS THAT WILL FORTIFY US AGAINST THE ONSLAUGHT SO MAYBE I WAS ASKING TOO MUCH FROM THE BRITISH DIRECTOR TERENCE DAVIES'S AUTOBIOGRAPHICAL FILM THE LONG DAY CLOSES WHICH IS THIS WEEK'S ALTERNATIVE TO SLIVER SHARON STONE IS AT IT AGAIN AND MADE IN AMERICA WHOOPI GOLDBERG IS HORRIFIED TO FIND OUT TED DANSON IS THE ANONYMOUS SPERMBANK DONOR WHO FATHERED HER CHILD BUT DURING THE FILM I ACTUALLY STARTED WONDERING ABOUT CLIFFHANGER THE NEW SYLVESTER STALLONE MOVIE HE BATTLES NATURE AND RUTHLESS CRIMINALS IN THE ROCKY MOUNTAINS I STARTED YEARNING FOR SLY DOING HIS THING UP THERE IN THE ROCKIES OF COURSE IT WASN'T SLY OR SHARON OR EVEN WHOOPI I REALLY WANTED WHAT I WANTED WAS THE ABSENCE OF GUILT THAT GOES ALONG WITH HOOTING AT SAY STALLONE ACTION FILMS THEY ALMOST BEG TO BE HOOTED AT STILL THEY DELIVER WHAT THEY PROMISE THERE'S SOMETHING REFRESHING ALMOST COMFORTING IN THEIR CYNICAL KOWTOWING TO BASIC INSTINCTS IT'S ALMOST AS THOUGH WE NEED THEM TO BE WHAT THEY ARE SO WE CAN COMPLAIN ABOUT THEM FEEL SUPERIOR TO THEM AND MAYBE SECRETLY ENJOY THEM BUT THE LONG DAY CLOSES ISN'T EVEN FUN TO DISLIKE IT'S SO PRISTINE SO ELEGANT SO CAREFULLY WROUGHT THAT IT MAKES YOU FEEL GUILTY FOR FEELING SO BORED LIKE A BAD GIRL WISHING SHE HAD SOME COMICS TO DISTRACT HER FROM A BORING POETRY READING SHE MAY FEEL GUILTY FOR BEING LOWBROW BUT SHE ALSO KNOWS A GOOD COMIC BOOK IS INFINITELY BETTER THAN BAD POETRY MR DAVIES WON MUCH PRAISE FOR HIS 1988 FILM DISTANT VOICES STILL LIVES A PORTRAIT OF A CATHOLIC WORKINGCLASS FAMILY IN THE LIVERPOOL OF THE 1940S AND '50S HE WAS HAILED AS A CINEMATIC POET I MISSED THAT PICTURE BUT WAS INTRIGUED BY WHAT I HEARD ABOUT MR DAVIES'S UNIQUE METHODS THE WAY HE USED FILM TO MIMIC MEMORY SO I WAS EAGER TO SEE THE LONG DAY CLOSES ANOTHER STORY ABOUT A BOY'S LIFE IN POSTWAR ENGLAND I WAS ESPECIALLY INTERESTED IN ITS EXTENSIVE USE OF MUSIC AND AUDIO EXCERPTS FROM FILMS TO SHOW HOW MOVIES INFLUENCED ITS YOUNG HERO'S INTERIOR LIFE THE SCORE IS IMPRESSIVELY ECLECTIC INCLUDING DEBBIE REYNOLDS SINGING TAMMY AS WELL AS MAHLER'S SYMPHONY NO 10 I SHOULD HAVE BEEN PREPARED BY THE ADVANCE PRAISE WHAT WAS I EXPECTING FROM A DESCRIPTION LIKE THIS DAVIES DOESN'T SO MUCH DIRECT HIS FILMS AS COMPOSE THEM AS VISUAL AND AURAL MOSAICS INDEED MR DAVIES HASN'T DIRECTED THIS FILM IN ANY CONVENTIONAL SENSE THERE'S NO NARRATIVE JUST A SERIES OF IMAGES AND SOUND BITES IT ISN'T THAT THE FILM IS DIFFICULT TO UNDERSTAND BY THE END YOU HAVE AMASSED A GREAT DEAL OF EASILY COMPREHENSIBLE INFORMATION THE BOY HAD LICE HE HAD MEAN SCHOOLTEACHERS HE LOVED THE MOVIES HE WAS A LITTLE LONELY IT RAINED A LOT BUT THE INFORMATION DOESN'T RESONATE THE WAY MR DAVIES THINKS IT DOES FOR EXAMPLE THE MATERIAL FROM OLD MOVIES JUST THE SOUND NOT THE IMAGES JUST HANGS IN SPACE IN FACT EVERYTHING IN THIS MOVIE SEEMS DISCONNECTED FROM EVERYTHING ELSE THOUGH IT'S EASY TO SEE WHAT'S IMPLIED IT'S A KIND OF DESIGNER MOVIE WHERE EVERY TASTEFULLY DESIGNED ELEMENT IS MEANT TO CONVEY A PARTICULAR EMOTION JUST BY BEING EVERYTHING THE MOVIE IMPLIES IS UNDERSTOOD UNDERSTOOD PERHAPS BUT NOT FELT AND THIS IS A PROBLEM FOR A MOVIE WHOSE PURPOSE IT SEEMS IS TO EVOKE EMOTION THE BITS AND PIECES MR DAVIES SHOWS US FROM HIS LIFE AT SCHOOL AT HOME AT THE MOVIES AND IN CHURCH CERTAINLY REVEAL MUCH ABOUT HIS SUFFOCATING CHILDHOOD BUT IT'S A LOT LIKE SPENDING 82 MINUTES DUTIFULLY FLIPPING THROUGH SOMEBODY ELSE'S FAMILY SNAPSHOTS AFTER BRIEFLY APPRECIATING THE WAY THOSE PEOPLE LOOK YOU DO START TO FEEL HOW VERY LONG 82 MINUTES CAN BE TRUTH ISN'T ALWAYS STRANGER THAN FICTION BUT SOMETIMES IT CAN BE MORE INTERESTING THAT IS THE CASE WITH MARTIN BELL THIS ASTUTE CINEMATOGRAPHER AND DOCUMENTARY FILMMAKER'S WORK INCLUDES STREETWISE THE WRENCHING NONFICTION 1984 FILM ABOUT ROOTLESS KIDS IN SEATTLE NOW HE'S DIRECTED A FICTIONAL VARIATION ON THE SAME SUBJECT AMERICAN HEART HIS FEATURE DEBUT IT'S ABOUT A MAN NAMED JACK WHO'S BEEN IN AND OUT OF PRISON ALL HIS LIFE TRYING TO GO STRAIGHT AND LEARNING TO LIVE WITH HIS YOUNG TEENAGE SON NICK THEY LIVE IN SEATTLE THE MOVIE WRITTEN BY PETER SILVERMAN A JOURNALIST AND TELEVISION WRITER IS GOOD ON THE DETAILS OF VAGABOND LIFE THE HOTELS ONE STEP UP FROM FLOPHOUSES THE KIDS HUSTLING THEMSELVES ON THE STREET IN PATHETIC IMITATION OF THEIR PARENTS OR IN DEFIANCE OF THEM BUT THE MOVIE POINTS UP THE DIFFERENT DEMANDS OF FEATURE FILMS AND DOCUMENTARIES A WELLDONE DOCUMENTARY LIKE STREETWISE CAN PROVOKE AND ENLIGHTEN BY EXPOSING ITS AUDIENCE TO UNFAMILIAR PEOPLE AND WORLDS IN STREETWISE IT IS ILLUMINATING AND HEARTWRENCHING TO MEET THOSE DISPLACED YOUNG PEOPLE AND TO LEARN ABOUT THEIR HARD LIVES BUT A FEATURE REQUIRES A DIFFERENT KIND OF UNDERSTANDING THE INTIMACY BETWEEN VIEWER AND SUBJECT THAT COMES FROM CHARACTER DEVELOPMENT AND STORY WHILE AMERICAN HEART OCCASIONALLY ACHIEVES THAT INTIMACY THE MOVIE'S STORY AND CHARACTERS NEVER MATCH THE INTELLIGENCE AND INTUITION OF ITS DOCUMENTARYLIKE DETAIL THE CHARACTERS SEEM OBSERVED NOT INFUSED WITH AN INNER LIFE THIS PROBLEM COMES MORE FROM THE WRITING THAN THE ACTING EDWARD FURLONG THE YOUNG BOY FROM TERMINATOR 2 HAS A STRONG SAD PRESENCE AS NICK THE SON AND JEFF BRIDGES AS JACK HAS THE FORTITUDE UNUSUAL IN MOVIE STARS TO FEND OFF THE IMPULSE TO MAKE HIMSELF LIKED VIDEO TIP OF COURSE STREET KIDS HAVE INSPIRED WRITERS AND MOVIE MAKERS FOR A VERY LONG TIME DAVID LEAN MADE THE CLASSIC STREETGANG MOVIE HIS 1946 ADAPTATION OF CHARLES DICKENS'S OLIVER TWIST WITH ALEC GUINNESS AND ANTHONY NEWLEY 9305270153 930527 WHO'S NEWS SHOWSCAN PRESIDENT CEO AARON RESIGNS AMID MERGER TALKS CULVER CITY CALIF SHOWSCAN CORP SAID THAT ROY H AARON PRESIDENT CHIEF EXECUTIVE OFFICER AND A FOUNDER OF THE COMPANY RESIGNED AS AN OFFICER OF THE ENTERTAINMENT CONCERN THE RESIGNATION WHICH WASN'T EXPECTED COMES AS SHOWSCAN NEGOTIATES A MERGER PACT WITH OMNI FILMS INTERNATIONAL INC ONE OF ITS PRINCIPAL RIVALS IN THE EMERGING BUSINESS OF ELABORATE VIRTUAL REALITY ENTERTAINMENT RIDES SHOWSCAN SAID IT IS CONTINUING TO PREPARE A DEFINITIVE MERGER AGREEMENT WITH OMNI FILMS AS REPORTED FRED HOLLINGSWORTH III CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF OMNI FILMS IN SARASOTA FLA IS TO SERVE AS PRESIDENT AND CHIEF EXECUTIVE OF THE MERGED COMPANIES A ROLE FOR MR AARON HADN'T BEEN DECIDED WHEN THE INITIAL MERGER AGREEMENT WAS ANNOUNCED TWO WEEKS AGO SHOWSCAN SAID THAT WILLIAM D EBERLE AN INVESTOR AND AN OUTSIDE DIRECTOR SINCE 1988 WAS ELECTED CHAIRMAN OF THE COMPANY SUCCEEDING HENRY G PLITT WHO DIED IN JANUARY MR AARON'S FUNCTION AS PRESIDENT AND CHIEF EXECUTIVE OFFICER WILL BE FILLED BY A FOURMEMBER OFFICE OF THE CHAIRMAN THE COMPANY SAID SHOWSCAN SAID IT ACCEPTED MR AARON'S RESIGNATION WITH REGRET MR AARON WHO WILL REMAIN A DIRECTOR OF SHOWSCAN SAID IN A PREPARED STATEMENT THAT HE HAS FULL CONFIDENCE IN THE MANAGEMENT TEAM AT SHOWSCAN MR AARON COULDN'T BE REACHED YESTERDAY THE NEW OFFICE OF THE CHAIRMAN INCLUDES JACK E OTTAWAY 48 YEARS OLD EXECUTIVE VICE PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR JAMES A SORENSON 52 YEARS OLD SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER AND A DIRECTOR AND RAYMOND C FOX 62 YEARS OLD SENIOR VICE PRESIDENT SECRETARY AND A DIRECTOR THE FOURTH MEMBER OF THE OFFICE OF THE CHAIRMAN IS MILTON A RUDIN 72 YEARS OLD WHO WAS ELECTED A DIRECTOR SUCCEEDING E ERIC JOHNSON WHO RESIGNED 9305270152 930527 PEPPERAND SALT WHEN IT WASN'T ELECTRIC 9305270151 930527 FINANCING BUSINESS AUDIO/VIDEO AFFILIATES INC AUDIO/VIDEO AFFILIATES INC SAID IT OFFERED TWO MILLION COMMON SHARES AT 1425 A SHARE THE DAYTON OHIO CONSUMER ELECTRONIC PRODUCTS RETAILER WHICH HAD 67 MILLION SHARES OUTSTANDING AS OF JAN 31 SAID IT OFFERED 13 MILLION SHARES AND THAT EXISTING SHAREHOLDERS SOLD THE REST THE COMPANY'S PROCEEDS WILL BE USED TO FINANCE EXPANSION IT SAID 9305270150 930527 GENELABS TECHNOLOGIES SIGNS PACT REDWOOD CITY CALIF GENELABS TECHNOLOGIES INC SAID IT SIGNED AN AGREEMENT FOR BOEHRINGER MANNHEIM AMERICA LTD TO DEVELOP AND MARKET DIAGNOSTIC AND SCREENING PRODUCTS FOR HEPATITIS X VIRUS GENELABS SAID BERMUDABASED BOEHRINGER MANNHEIM PAID THE COMPANY 10 MILLION AT THE SIGNING OF THE NONEXCLUSIVE CONTRACT ADDITIONAL PAYMENTS AND EQUITY INVESTMENTS WILL BE MADE IN THE FUTURE GENELABS SAID 9305270149 930527 INTERNATIONAL CAMBODIA SEES POSSIBLE END TO KHMER ROUGE THREAT BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL NEAK LUONG CAMBODIA HISTORY HAS SELDOM SPARED THIS DUSTY MEKONG RIVER FERRY TOWN THIS YEAR IS NO EXCEPTION IT HAS BEEN BOMBED BY US B52S AND OVERRUN BY VIET CONG BUT RESIDENTS AGREE THE WORST CAME WHEN THE TOWN WAS EVACUATED BY THE GENOCIDAL KHMER ROUGE WHOSE BRUTAL REGIME FROM APRIL 1975 THROUGH DECEMBER 1978 LEFT PERHAPS 15 MILLION OF THEIR COUNTRYMEN DEAD THE KHMER ROUGE WERE OUSTED BY VIETNAMESE INVADERS WHO MARCHED RIGHT THROUGH NEAK LUONG TREES HERE STILL BEAR SHRAPNEL SCARS AND EXPLOSIVE MINES SOMETIMES KILL OR MAIM PEASANTS IN THE FIELDS THIS YEAR ARMED WITH PENCILS AND BALLOT BOXES THE PEOPLE OF NEAK LUONG ARE HOPING TO END THEIR CYCLE OF TRAUMAS BY CASTING BALLOTS IN UNITED NATIONSSPONSORED ELECTIONS TO PICK A CONSTITUTIONAL ASSEMBLY FOR MANY HERE THE GOAL IS THE SAME TO REMOVE THE KHMER ROUGE FROM THE NATIONAL LANDSCAPE AN IDEA THAT EVENTS THIS WEEK MAKE INCREASINGLY PLAUSIBLE I SUFFERED SO MUCH UNDER THE KHMER ROUGE SAYS AN SON A 66YEAROLD RETIRED FERRY WORKER WHO LOST HIS MOTHER AND 12 OTHER RELATIVES AND CANNOT SPEAK OF THE PERIOD WITHOUT CRYING POUCH SIN A 59YEAROLD WOOD CARVER WHO ALSO SAW MANY RELATIVES PERISH IS EMPHATIC WE MUST BE SURE THEY CAN NEVER COME BACK BY TURNING OUT IN HUGE NUMBERS FOR THIS WEEK'S HISTORIC NATIONAL ELECTION CAMBODIANS MAY GET THEIR WISH BY MARGINALIZING THE NOTORIOUS KHMER ROUGE DIPLOMATS AND ANALYSTS SAY TO BE SURE THE ELECTION COULD PROVOKE THE KHMER ROUGE INSURGENTS TO TRY TO REVIVE WIDESCALE CIVIL WAR AGAINST ANY GOVERNMENT THAT EMERGES BUT DOESN'T OFFER THE RADICAL COMMUNIST MOVEMENT SOME KIND OF ROLE THESE OBSERVERS BELIEVE SUCH A SCENARIO IS CONSIDERED LIKELY IF THE KHMER ROUGE'S CHIEF RIVAL THE PARTY OF PRIME MINISTER HUN SEN WINS A PLURALITY AND IS ABLE TO FORM A RULING COALITION HE LEADS A GOVERNMENT INSTALLED BY VIETNAM IN 1979 AFTER THE INVASION THAT EJECTED THE KHMER ROUGE HANOI'S ERSTWHILE ALLIES YET WITH MORE THAN 90 OF THIS BELEAGUERED COUNTRY'S 47 MILLION REGISTERED VOTERS CASTING BALLOTS ALREADY THIS WEEK SUCH A STRATEGY COULD BACKFIRE AND TOTALLY ISOLATE THE KHMER ROUGE THOUGH THE GROUP IS WIDELY UNPOPULAR FOR CREATING CAMBODIA'S KILLING FIELDS SOME PARTIES HAVE SUPPORTED A ROLE FOR IT IN ANY ADMINISTRATION OF NATIONAL RECONCILIATION PERHAPS RECOGNIZING A NEW MOOD KHMER ROUGE MILITANTS AREN'T MAKING GOOD ON EARLIER THREATS TO SABOTAGE THE ELECTION AND HAVE EVEN ALLOWED SOME RESIDENTS OF RURAL TERRITORIES THEY CONTROL TO VOTE ONLY A FEW POLLING SITES HAVE BEEN SHUT BECAUSE OF KHMER ROUGE ATTACKS THE KHMER ROUGE REALIZED THAT PEOPLE INDEED WANTED TO VOTE SAYS CHARLES H TWINING THE US SPECIAL REPRESENTATIVE IN PHNOM PENH THEY DECIDED IT'S BETTER TO PLAY THE HEARTSANDMINDS GAME FOR THE UN TRANSITIONAL AUTHORITY IN CAMBODIA OR UNTAC WHICH IS ADMINISTERING THIS SOUTHEAST ASIAN COUNTRY'S FIRST ELECTION SINCE 1972 AS PART OF ITS BROAD GOVERNING MANDATE UNDER THE 1991 PARIS PEACE ACCORDS THE KHMER ROUGE'S OBVIOUS MISCALCULATION IN WITHDRAWING FROM THE PEACE AND ELECTORAL PROCESS IT SIGNED THE PARIS AGREEMENTS IS A BOOST TO ITS CREDIBILITY AND A RELIEF IT'S COMPLETELY CONTRADICTORY TO WHAT WE EXPECTED TO HAPPEN SAYS REGINALD AUSTIN THE UN'S ELECTORAL DIRECTOR ANOTHER UN OFFICIAL SAID IT'S POSSIBLE THE KHMER ROUGE LACKED THE MILITARY PLANNING TIME TO MOUNT A FULLSCALE ATTACK ON POLLING STATIONS AND SIMPLY POSTPONED THEIR EFFORTS TO UNDERMINE THE ELECTORAL PROCESS DESPITE PRIME MINISTER HUN SEN'S COMMENT THAT THE KHMER ROUGE IS BREATHING ITS LAST BREATH A COMMON BELIEF IS THAT THE KHMER ROUGE'S NEW POSTURE SUGGESTS AN INTENTION TO BARGAIN THE GROUP STILL HEADED BY ITS SECRETIVE LEADER OF THE 1970S POL POT MAY BELIEVE IT CAN FIND A BACK DOOR INTO A NEW ADMINISTRATION THAT COULD BE POSSIBLE IF THE LEADING OPPOSITION PARTY FUNCINPEC WINS A SUBSTANTIAL ROLE IN THE NEXT GOVERNMENT AS LOOKS INCREASINGLY LIKELY ACCORDING TO INFORMAL POLLS BY JAPANESE NEWS AGENCIES THIS WEEK'S ELECTIONS WILL CHOOSE A 120MEMBER NATIONAL ASSEMBLY THAT THEN HAS THREE MONTHS TO DRAFT A CONSTITUTION AND TRANSFORM ITSELF INTO A LEGISLATURE THE POPULIST FUNCINPEC AN ACRONYM FOR THE FRENCH NAME OF THE NATIONAL FRONT FOR AN INDEPENDENT NEUTRAL PEACEFUL AND COOPERATIVE CAMBODIA IS THE PARTY OF PRINCE NORODOM RANARIDDH HE IS THE SON OF PRINCE NORODOM SIHANOUK CAMBODIA'S 70YEAROLD PATRIARCH GODKING AND A SOMETIME ALLY OF THE KHMER ROUGE PRINCE SIHANOUK IN THE PAST MAINTAINED THAT HE PREFERRED TO HAVE THE KHMER ROUGE INSIDE A GOVERNMENT INSTEAD OF OUTSIDE MAKING WAR THE KHMER ROUGE MAY BE THINKING LET'S TRY TO GET POWER THROUGH SIHANOUK SAYS ONE DIPLOMAT THIS WEEK THOUGH THE FICKLE PRINCE EXPLICITLY CALLED FOR ALL PARTIES TO LAY DOWN THEIR ARMS SOMETHING THE KHMER ROUGE HAS VOWED NEVER TO DO AND HE TOLD FRENCH LEGISLATORS YESTERDAY THAT HE NO LONGER BELIEVES A GOVERNMENT ENCOMPASSING ALL GROUPS IS NECESSARY MOREOVER HIS SON'S PARTY FUNCINPEC HAS BECOME CAGEY ABOUT A POSSIBLE KHMER ROUGE ROLE IN A COALITION GOVERNMENT ANALYSTS SAY THAT MAY BE A PLOY TO WIN VOTES AND THE CONFIDENCE OF CAMBODIANS WHO FEAR THE KHMER ROUGE BUT AN EMERGING VIEW AMONG DIPLOMATS HOLDS THAT FUNCINPEC MAY PLAN TO TRY FORMING A GRAND COALITION WITH THE CAMBODIAN PEOPLE'S PARTY OF HUN SEN IF TOGETHER THEY CAN COBBLE TOGETHER A GOVERNMENT THAT COULD ALSO PROMPT THE KHMER ROUGE TO RESUME THE CIVIL WAR THAT PREVAILED IN CAMBODIA BEFORE UNTAC SHOWED UP EARLY LAST YEAR UNTAC WAS SUPPOSED TO CORRAL THE ARMED FORCES OF ALL FACTIONS AND DISARM THEM BUT FAILED AS A RESULT THE KHMER ROUGE IS THOUGHT TO HAVE EXPANDED ITS PRESENCE IN THE COUNTRYSIDE IF THE KHMER ROUGE WERE TO RESUME LARGESCALE WARFARE AGAINST A NEWLY ELECTED GOVERNMENT UNTAC MIGHT HAVE TO DECIDE WHETHER OR NOT TO DEFEND THE NEWLY LEGITIMATE ADMINISTRATION IT CRAFTED THAT'S A DECISION UNTAC AND ITS BIGPOWER BACKERS HAVEN'T YET FACED 9305270148 930527 SOUTHMOUNTAIN COAL IS CITED FOR VIOLATIONS IN DECEMBER'S BLAST WASHINGTON THE GOVERNMENT CITED SOUTHMOUNTAIN COAL CO FOR 33 VIOLATIONS OF US MINESAFETY STANDARDS IN CONNECTION WITH AN EXPLOSION THAT KILLED EIGHT COAL MINERS AT A WISE COUNTY VA MINE IN DECEMBER EACH ALLEGED VIOLATION COULD DRAW A CIVIL PENALTY OF 50000 THE MINE SAFETY AND HEALTH ADMINISTRATION SAID ALTHOUGH THE LABOR DEPARTMENT DIVISION HASN'T YET DETERMINED HOW MUCH OF A FINE TO SEEK INFORMATION ABOUT THE CASE ALSO WILL BE PASSED ON TO THE JUSTICE DEPARTMENT FOR POSSIBLE CRIMINAL ACTIONS SAID EDWARD HUGLER ACTING ASSISTANT DIRECTOR OF THE AGENCY THE BLAST WAS IGNITED BY A BUTANE CIGARETTE LIGHTER MSHA OFFICIALS DETERMINED THAT SPARK SET OFF METHANE GAS LEFT IN THE MINE BECAUSE THE MINE'S APPROVED VENTILATION PLAN WAS VIOLATED THE AGENCY SAID 9305270147 930527 ARIZONA BOND RATINGS NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT CONFIRMED SIX RATINGS AND DOWNGRADED ONE RATING ON HOSPITAL REVENUE BONDS IN ARIZONA AFFECTING ABOUT 356 MILLION OF DEBT MOODY'S DOWNGRADED 78 MILLION OF DEBT OF MARCUS J LAWRENCE MEDICAL CENTER COTTONWOOD ARIZ TO BAA FROM BAA1 REFLECTING VULNERABILITIES ASSOCIATED WITH A SMALL FACILITY IN A RURAL SERVICE AREA 9305270146 930527 A BETTER CAUSE IRAQ BY AMITY SHLAES UNITED NATIONS ANOTHER DAY ANOTHER PRIORITIES HEADACHE HERE AT THE NORTHERN HEADQUARTERS OF THE NEW WORLD ORDER TUESDAY THE POWERS THAT BE FAVORED THE STATUS QUO WHEN SECRETARY GENERAL BOUTROS BOUTROSGHALI BUMPED TIANANMEN SQUARE HERO SHEN TONG OFF THE PREMISES AT THE REQUEST OF THE CHINESE GOVERNMENT YESTERDAY A DIFFERENT DISSIDENT GROUP TRIED ITS HAND AT SCALING THE UN MOAT FROM AN OUTPOST IN THE BEEKMAN TOWERS HOTEL ACROSS THE STREET IRAQ'S EXILE RESISTANCE PUT FORWARD ITS BID FOR WORLD ATTENTION A PLAN FOR A NUREMBERGTYPE TRIBUNAL TO TRY BAATH LEADERS AS WAR CRIMINALS IF EVER A RESISTANCE GROUP DESERVED BACKING IT'S THE IRAQI EXILES THEY'RE RULEOFLAW DEMOCRATS WHO LAST YEAR WROTE THEIR OWN USSTYLE BILL OF RIGHTS WITH GLOBAL OPINION UNIFIED AGAINST THE BAATH REGIME YOU'D THINK THE WORLD WOULD BE EMBRACING THEM BUT THE CLINTON ADMINISTRATION AND THE UN ARE TWO RUDDERLESS OUTFITS ON THE HIGH SEAS OF MORAL CONFUSION THE SECRETARY OF STATE YESTERDAY TOLD THE AP THAT AMERICA'S ROLE IN THE WORLD MEANT TAKING THE LEAD IN PLACE AFTER PLACE THE UN FOR ITS PART IS DOING ITS MIGHTY BEST THIS WEEK TO FOCUS ON THE FORMER YUGOSLAVIA FOR WHOSE SERBS THE SECURITY COUNCIL HAS APPROVED WAR CRIMES TRIALS AND ON CAMBODIA WHERE IT IS SUPERVISING ELECTIONS THAT COST ITS MEMBERS 3 BILLION TROUBLE IS CAUSES LIKE THE IRAQI DISSIDENTS' KEEP BOBBING UP TO DISTRACT IT THE EXILES AT THE IRAQI MORNING PRESS CONFERENCE APPEAR OPTIMISTIC ABOUT THEIR FIGHT KANAN MAKIYA A LONGTIME CHRONICLER OF HIS NATION'S DISSIDENT CAUSE ARRIVES PUNCTUALLY AT 11 WITH A FAT VOLUME THAT MAKES THE EXILES' CASE MR MAKIYA AND OTHER DISSIDENTS KURDS SHIITES SUNNIS AND CHRISTIANS WHO HAVE JOINED FORCES IN A GROUP CALLED THE IRAQI NATIONAL CONGRESS WANT TO PUT SADDAM AND HIS 12 MOST CRUEL DISCIPLES BEFORE AN INTERNATIONAL COURT SADDAM HUSSEIN AND HIS COHORTS ARE NO LONGER THE CENTRAL ISSUE OF IRAQI POLITICS SAYS MR MAKIYA SHOWING ADMIRABLE DISREGARD FOR MERE FACTS LIKE THE RECENT NEWS THAT THE DICTATOR HAS AMASSED 75000 TROOPS ALONG THE BORDER OF UNPROTECTED KURDISH ENCLAVES WHEN SADDAM FALLS HE SAYS NO UNCERTAINTY IN HIS VOICE HERE EITHER IRAQ WILL FACE THE IMPENDING CATASTROPHE OF CIVIL WAR WE NEED HELP FROM THE INTERNATIONAL COMMUNITY NOW SITTING NEAR A WINDOW THAT LOOKS OUT ON HIS FORTRESS GOAL MR MAKIYA SPENDS LONG MINUTES PRESENTING AN ELABORATE INDICTMENT THAT DIVIDES THE BAATH REGIME'S CRIMES INTO FIVE CHRONOLOGICAL CATEGORIES PHASE I DEPORTATION OF SHIITE IRAQIS BEFORE THE IRANIRAQ WAR PHASE II USE OF CHEMICAL WEAPONS AND SYSTEMATIC MURDER OF CIVILIANS AT HOME DURING THAT WAR PHASE III MASSACRES OF IRAQI KURDS AND OTHERS BEFORE THE INVASION OF KUWAIT PHASE IV OCCUPATION CRIMES IN KUWAIT PHASE V BRUTAL REPRESSION OF SHIITES AND KURDS THE INTERNATIONAL COURT THAT WILL REVIEW THE SERBIANS' WORK WILL BE LOCATED IN THE HAGUE BUT MR MAKIYA AND THE CONGRESS NO CHICKENS WANT TO HOLD THEIR TRIALS RIGHT IN BAGHDAD I AM TALKING ABOUT A DIRECT INTERVENTION INTO IRAQ HE SAYS DREAM ON SAY THE EXPRESSIONS OF THE 10 OR SO LISTENERS IN THE HOTEL'S SMALL CONFERENCE ROOM THE POWERS THAT BE AT THE UN CASTLE AND IN WASHINGTON WERE THE ONES WHO FAILED TO TAKE SADDAM AND SO ALLOWED THE CONTINUATION OF THE IRAQI NIGHTMARE IN THE FIRST PLACE THE UN HAS SUPERVISED KURDISH SAFEHAVEN ZONES IN THE NORTH BUT FREQUENTLY HAS GIVEN CRUCIAL LEEWAY TO BAGHDAD AND THE FUNDING FOR THAT EFFORT IS RUNNING OUT IRAQI EXILES ARE CAMPAIGNING FOR GREATER OUTLAYS FOR THE SAFEHAVEN ZONES AT THE SAME TIME AS THEY WORK ON THEIR WARCRIMES PROPOSAL IRAQ DISSIDENTS NOTE CORRECTLY THAT IRAQ IS A SIMPLER CASE THAN YUGOSLAVIA THE UN MOVE TO TRY SERBS IS AN EXCELLENT PRECEDENT SAYS REND RAHIM AN IRAQI NATIONAL CONGRESS ACTIVIST PRESENT AT THE MEETING IF YUGOSLAVIA DESERVES A COURT DOESN'T IRAQ DESERVE ONE MR MAKIYA ARGUES THAT THE TIME TO DO SOMETHING IN IRAQ IS NOW HE WANTS TRIALS FOR THE BIG 13 INVESTIGATIONS OF THE CASES OF 20ODD MORE AND AMNESTY FOR THE REST OF IRAQ BECAUSE VENGEANCE IS NOT JUSTICE THE WEST HE SAYS NEEDS TO HELP IRAQ TOWARD JUDICIAL PROCEDURES OF DUE PROCESS ONLY THEN CAN IT AVOID THE KIND OF INTERNECINE BLOODBATHS IN YUGOSLAVIA OR LEBANON CAMBODIA IS A 3 BILLION ARGUMENT IN MR MAKIYA'S FAVOR THE UN TROUBLES THERE SHOW THE FUTILITY OF RELYING ON HOPELESSLY POLITICIZED LOCAL COURTS THE NEW WASHINGTON HAS SHOWN INTEREST IN THE TOPIC BUT INCONSISTENT INTEREST ON A TUESDAY AND WEDNESDAY IN APRIL SECRETARY OF STATE WARREN CHRISTOPHER AND VICE PRESIDENT AL GORE MET WITH IRAQI NATIONAL CONGRESS LEADERS AN HONOR THAT THE BUSH ADMINISTRATION LONG DELAYED ACCORDING THE DISSIDENT GROUP THEN MR CHRISTOPHER PROMISED THAT HIS UN AMBASSADOR MADELEINE ALBRIGHT WOULD TAKE A PROPOSAL ON WAR CRIMES TO THE SECURITY COUNCIL BY THAT FRIDAY THEIR REQUEST HAS STALLED FOR THE MOMENT EVERYONE'S BUSY NEVERTHELESS THE IRAQIS ARE CONFIDENT WHILE WAITING THE US OUT THEY FINISHED PREPARING A 150PAGE BRIEFING BOOK DOCUMENTING THE CRIMES OF SADDAM BAATH PRIME MINISTER TARIQ AZIZ AND SOME OTHER MONSTERS FROM SADDAM'S HOMETOWN OF TIKRIT YESTERDAY THE IRAQI NATIONAL CONGRESS SPOKESMAN PULLED OUT THE DAY'S SCHEDULE OF BLITZ MEETINGS WITH UN AMBASSADORS 945 CAPE VERDE 10 SPAIN 1015 VENEZUELA 11 SAUDI ARABIA 1230 BRITAIN 1430 SWEDEN 1500 QATAR TWO MORE DAYS OF MEETINGS ARE TO FOLLOW MR MAKIYA WON'T GUESS HOW LONG SADDAM WILL LAST HOW LONG DOES IT TAKE FOR SOMETHING TO ROT HE ASKS BUT HE DOES SAY EARLY ACTION IS IMPORTANT INTERVENTION IN YUGOSLAVIA TODAY MEANS SOMETHING ENTIRELY MORE DIFFICULT THAN IT MEANT A YEAR OR TWO EARLIER HE NOTES WITH THE UN AND WASHINGTON AS ADRIFT AS THEY ARE LET'S HOPE SOMEONE TAKES THE TIME TO HEAR HIM OUT MISS SHLAES IS EDITORIAL FEATURES EDITOR OF THE WALL STREET JOURNAL 9305270145 930527 NETWORK SYSTEMS CORP PURCHASE MINNEAPOLIS NETWORK SYSTEMS CORP A SUPPLIER OF HIGHPERFORMANCE DATA COMMUNICATIONS PRODUCTS SAID IT COMPLETED THE ACQUISITION OF THE ASSETS OF BUSTECH INC A BURLINGTON MASS MAKER OF INTERCONNECT CONTROLLERS FOR 245 MILLION 9305270144 930527 FOX FILM PLANS REDEMPTION THE COMPANY SAID IT WILL REDEEM ITS 10 1/4 DEBENTURES DUE APRIL 1 1998 AT 102 FOR EACH 100 OF PRINCIPAL AMOUNT AND THE 13 1/4 DEBENTURES DUE JULY 1 2000 AT 10418 PER 100 PRINCIPAL AMOUNT FOR A TOTAL CONSIDERATION OF 514 MILLION UPON REDEMPTION TWENTIETH CENTURY FOX WILL HAVE NO PUBLICLY HELD SECURITIES 9305270143 930527 POLITICS & POLICY EXCHIEFS OF STAFF PONDER CLINTON WOES AND URGE ADVISERS TO STAND UP TO BOSS BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LIKE ADO ANNIE IN OKLAHOMA PRESIDENT CLINTON'S AIDES JUST CAN'T SAY NO AND THAT IS THE FUNDAMENTAL PROBLEM BESETTING THE CLINTON ADMINISTRATION ACCORDING TO THE WORLD'S MOST EXCLUSIVE GROUP OF EXPERTS ON THE WHITE HOUSE FORMER PRESIDENTIAL CHIEFS OF STAFF INTERVIEWS WITH EIGHT OF THEM THIS WEEK YIELD A WIDELY HELD VIEW THAT NO ONE IN THE CLINTON OPERATION HAS THE STATURE GUTS AND WILLINGNESS TO REIN IN THE PRESIDENT WHEN HIS OWN JUDGMENT IS FAULTY THE RESULTING LACK OF DISCIPLINE SAY THESE FORMER TOP PRESIDENTIAL AIDES HAS OBSCURED MR CLINTON'S MESSAGE SQUANDERED A MAJOR PORTION OF HIS PRECIOUSLY SHORT HONEYMOON PERIOD AND GIVEN THE PUBLIC A STARKLY DIFFERENT AND FAR MORE NEGATIVE VIEW OF THE MAN THEY ELECTED THEY NEED A MECHANISM THAT DISCIPLINES HIM AND HIS USE OF TIME WHICH IS HIS MOST IMPORTANT RESOURCE AND FORCES THE PROCESS TO DEAL WITH ISSUES THAT IT NEEDS TO DEAL WITH SAYS DICK CHENEY WHO WAS CHIEF OF STAFF FOR GERALD FORD MAYBE THERE'S A NEED FOR A COUPLE WISE OLD HEADS IN THERE THERE IS SOMETHING TO BE SAID FOR EXPERIENCE ADDS KENNETH DUBERSTEIN CHIEF UNDER RONALD REAGAN ONE OF THE ESSENTIAL INGREDIENTS OF BEING A GOOD WHITE HOUSE STAFFER IS THE WILLINGNESS AND ABILITY TO GIVE THE PRESIDENT REALITY THIS IS NOT A COMFORTABLE THING TO DO BUT IT MUST BE DONE EACH OF THE EIGHT FORMER TOP PRESIDENTIAL AIDES REACHED THIS WEEK ACKNOWLEDGED TO VARYING DEGREES THAT THE PRESIDENT FACES SERIOUS PROBLEMS THAT HE MUST ADDRESS TO PRESERVE HIS CLOUT AND CREDIBILITY SEVERAL ALSO ASSERTED THAT TIME WAS RUNNING PRECARIOUSLY SHORT TO DO SO WHEN THE CLAY IS SOFT IT'S MUCH EASIER TO SHAPE SAYS DONALD RUMSFELD A CHIEF OF STAFF TO PRESIDENT FORD EACH WEEK OR MONTH THAT GOES BY IT GETS HARDENED TIME IS RUNNING OUT AGREES ALEXANDER HAIG CHIEF TO PRESIDENT NIXON WHILE 100 DAYS OR SO DOESN'T LOOK LIKE MUCH GIVEN THE LIMITED WINDOW OF OPPORTUNITY THAT A PRESIDENT HAS THE CLOCK IS RUNNING BUT SEVERAL OF THEM ALSO MAKE THE POINT THAT MR CLINTON STILL HAS AMPLE OPPORTUNITY TO RECOVER FROM HIS EARLY MISCUES I'VE SEEN MANY AN ACE PITCHER GET KNOCKED AROUND IN THE OPENING INNINGS AND THEN FIND HIS GROOVE AND PITCH A MASTERFUL GAME SAYS THEODORE SORENSEN WHO WAS THE CLOSEST THING JOHN F KENNEDY HAD TO A CHIEF OF STAFF BILL CLINTON IS GETTING KNOCKED AROUND A BIT BUT HE'LL FIND HIS GROOVE INDEED IT'S INSTRUCTIVE TO REMEMBER THAT EVEN POPULAR AND POLITICALLY SUCCESSFUL PRESIDENTS HIT SOME BAD PATCHES IN ONE MEMORABLE FORTNIGHT IN NOVEMBER OF 1981 PRESIDENT REAGAN WAS BESET BY THREE SIMULTANEOUS POLITICAL CRISES HIS SECRETARY OF STATE ANNOUNCED THAT UNNAMED WHITE HOUSE AIDES WERE TRYING TO OUST HIM HIS BUDGET DIRECTOR PUBLICLY ACKNOWLEDGED HUGE FLAWS IN HIS ECONOMIC POLICY AND HIS NATIONAL SECURITY ADVISER WAS UNDER INVESTIGATION FOR HIS HANDLING OF CASH AND ACCEPTANCE OF WRISTWATCHES FROM JAPANESE INTERESTS MEANWHILE THE ECONOMY WAS IN A RECESSION AND THE PRESIDENT'S POLL RATINGS WERE DROPPING IN POLITICS THINGS ARE NEVER AS GOOD OR AS BAD AS THEY SEEM SAYS HAMILTON JORDAN WHO WAS CHIEF OF STAFF UNDER JIMMY CARTER MY ADVICE TO THE CLINTON WHITE HOUSE IS TO RECOGNIZE NOW THAT THEY HAVE SOME PROBLEMS AND TO ADDRESS THEM BUT DON'T OVERREACT TO THEM THIS IS A ROLLERCOASTER RIDE MR JORDAN'S COMMENTS MAY DESERVE SPECIAL ATTENTION SINCE PRESIDENT CARTER'S REACTION TO PROBLEMS WITHIN HIS ADMINISTRATION A WHOLESALE SHAKE UP OF HIS CABINET AND STAFF FOLLOWED BY A SPEECH IN WHICH HE TALKED OF A MALAISE GRIPPING THE COUNTRY IS WIDELY SEEN AS A TEXTBOOK EXAMPLE OF HOW NOT TO DEAL WITH AN INTERNAL CRISIS FOR ALL THE PROBLEMS THESE FORMER OFFICIALS SEE WITH MR CLINTON'S STAFF SOME MAKE THE POINT THAT THE FUNDAMENTAL PROBLEM IS MR CLINTON HIMSELF YOU'VE GOT TO LAY THE RESPONSIBILITY UP NOT DOWN MR RUMSFELD SAYS AN ARTICULATE COMMUNICATOR DURING THE CAMPAIGN MR CLINTON NOW SEEMS TO MANY TO BE UNABLE TO CONVEY HIS MESSAGE AS PRESIDENT CLINTON TO DATE DOESN'T SEEM TO BE TERRIBLY COMFORTABLE USING THE BULLY PULPIT OF THE WHITE HOUSE TO RALLY THE AMERICAN PUBLIC BEHIND HIM SAYS MR DUBERSTEIN WHO BELIEVES THE PRESIDENT SHOULD HAVE GONE ON NATIONWIDE TELEVISION TO SELL HIS ECONOMIC PACKAGE NOR HAS HE DEMONSTRATED POLITICAL JUDGMENT IN DEALING WITH CONGRESS HE'S GONE A LITTLE FAST ON THIS COMPROMISES STUFF SAYS DONALD REGAN A FORMER CHIEF OF STAFF TO PRESIDENT REAGAN THE RESULT IS HE'LL GET MUCH LESS OF WHAT HE ASKED FOR ORIGINALLY IF HE WERE TO HOLD OUT A LITTLE LONGER AND THEN CAVE AT THE LAST MINUTE THE BILL WOULD BE MORE IN THE SHAPE THAT HE WANTS IT MOST FUNDAMENTALLY SAYS MR RUMSFELD THE DIRECTION AND TONE OF THE PRESIDENCY SEEMS DIFFERENT FROM THE DIRECTION AND TONE OF THE CAMPAIGN THAT FACT IS JARRING THE KIND OF STAFF THE PRESIDENT NEEDS THESE OLD WHITE HOUSE HANDS SAY IS ONE THAT WILL CONFRONT HIM WHEN NECESSARY TO KEEP HIM FOCUSED AND DISCIPLINED IN HIS MESSAGE AND HIS POLITICAL MANEUVERING MOREOVER ADVISES FORMER GEORGE BUSH STAFF CHIEF SAMUEL SKINNER THEY HAVE TO FIND A WAY TO PREVENT THE MINOR ISSUES FROM BECOMING MAJOR ISSUES SUCH AS THE PRESIDENT'S 200 HAIRCUT AND THE BOTCHED FIRING OF SEVEN EMPLOYEES OF THE WHITE HOUSE TRAVEL OFFICE MR SKINNER SAYS THE ONLY WAY TO ACCOMPLISH THOSE TASKS IS TO HAVE STRICT INTERNAL CONTROLS THAT ELIMINATE CIRCUMSTANCES WHERE MINOR ISSUES EXIST AT ALL BUT THAT KIND OF STEADINESS IS DIFFICULT TO ACHIEVE WHEN THE WHITE HOUSE DOESN'T APPEAR TO HAVE A DEFINABLE SET OF GOALS AND A SYSTEM TO DEAL WITH THE MANY CRISES THAT INEVITABLY EMERGE YOU SIMPLY HAVE GOT TO DECIDE THE SEVERAL THINGS YOU THINK ARE IMPORTANT FOR THE COUNTRY AND FOCUS ON THEM AND GET THE ADMINISTRATION AND THE CONGRESS WORKING OFF OF YOUR OUTBOX INSTEAD OF YOU WORKING OFF YOUR INBOX MR RUMSFELD SAYS OF COURSE ALL THAT IS FAR EASIER SAID THAN DONE AS MANY OF THE FORMER CHIEFS OF STAFF THEMSELVES CAN SADLY ATTEST THERE'S A PART OF ME OBSERVES MR JORDAN THAT HAS A LOT OF EMPATHY FOR CLINTON 9305270142 930527 WHO'S NEWS MITEK SURGICAL PRODUCTS INC MITEK SURGICAL PRODUCTS INC NORWOOD MASS LAWRENCE A LEHMKUHL CHAIRMAN OF SAINT JUDE MEDICAL INC WAS NAMED A DIRECTOR OF THIS SURGICAL IMPLANT CONCERN INCREASING THE SIZE OF BOARD TO FIVE 9305270141 930527 NELLCOR TO BUY BACK STOCK NELLCOR INC SAID ITS BOARD APPROVED A STOCK BUYBACK BEGINNING IN JULY THE HAYWARD CALIF MAKER OF MEDICAL SENSING DEVICES SAID THE SIZE OF THE BUYBACK WOULD DEPEND ON THE STOCK PRICE REPURCHASED SHARES WILL BE USED TO REPLENISH THE COMPANY'S STOCK POOL FOR EMPLOYEE STOCK OWNERSHIP PROGRAMS AND STOCK OPTION PLANS NELLCOR HAS ABOUT 17 MILLION COMMON SHARES OUTSTANDING 9305270140 930527 TAXFREE FUND YIELDS ROSE IN LATEST WEEK NEW YORK YIELDS ON TAXFREE MONEYMARKET FUNDS JUMPED IN THE LATEST WEEK WHILE YIELDS ON TAXABLE FUNDS EASED IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND TAXEXEMPT YIELD ROSE TO 218 FROM 203 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE LATEST TAXEXEMPT YIELD IS EQUIVALENT TO A TAXABLE 303 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 316 FOR SOMEONE PAYING 31 IN TAXES THAT HANDILY BEATS WHAT INVESTORS GOT ON TAXABLE MONEY FUNDS ACCORDING TO DATA COMPILED BY MONEY FUND REPORT IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND TAXABLE YIELD DECLINED TO 263 FROM 264 IN THE LATEST WEEK ASSETS OF 322 TAXEXEMPT FUNDS INCREASED BY 780 MILLION TO 10021 BILLION MONEY FUND REPORT SAID BUT ASSETS OF 598 TAXABLE FUNDS DECREASED BY 213 BILLION TO 48662 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ACCOUNTED FOR MOST OF THE OUTFLOW AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER OR SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 64 DAYS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS INCHED DOWN TO 259 FROM 260 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD EASED TO 260 FROM 261 WHILE THE AVERAGE 30DAY COMPOUND YIELD REMAINED AT 264 THE AVERAGE MATURITY OF THE INVESTMENTS HELD BY TAXEXEMPT MONEY FUNDS REMAINED AT 48 DAYS 9305270139 930527 BRITISH PETROLEUM TO SELL DIVISION LONDON BRITISH PETROLEUM CO SAID IT WILL SELL ITS CONSUMER PRODUCTS DIVISION TO A GROUP LED BY A UNIT OF THE INSURANCE COMPANY LEGAL & GENERAL GROUP PLC FOR ABOUT 3875 MILLION AS PART OF A RESTRUCTURING ANNOUNCED LAST YEAR BP DECIDED TO SELL OFF SOME SUBSIDIARIES NOT RELATED TO ITS CORE ENERGY BUSINESSES 9305270138 930527 INTERNATIONAL EUROPEAN CAR SALES DROPPED 19 IN APRIL JAPAN'S SHARE ROSE BONN NEWCAR SALES IN THE EUROPEAN COMMUNITY FELL 193 IN APRIL FROM A YEAR EARLIER ADDING TO AUTO MAKERS' GLOOM AS THEY FACE ONE OF THEIR WORST YEARS IN RECENT MEMORY ALMOST EVERY CAR MAKER LOST CUSTOMERS THOUGH JAPANESE PRODUCERS BEEFED UP THEIR SHARE OF THE SHRINKING MARKET IN APRIL TO A COMBINED 124 FROM 113 A YEAR EARLIER THE JAPANESE SURGE HAS REKINDLED THE BATTLE OVER THE PREVIOUSLY NEGOTIATED STEPBYSTEP OPENING OF THE EC MARKET TO JAPANESE CARS NEW REGISTRATIONS OF CARS AND LIGHT COMMERCIAL VEHICLES IN APRIL TOTALED 1091090 DOWN FROM A YEAREARLIER LEVEL OF 1352010 THE ACEA SAID THAT BROUGHT THE FOURMONTH TOTAL FOR JANUARY THROUGH APRIL DOWN TO 4230800 OR 184 BELOW THE SAME PERIOD A YEAR EARLIER ONE OF THE HARDEST HIT IS FIAT SPA THE ITALIAN AUTOMOTIVE GROUP SAW SALES PLUNGE 29 IN APRIL TO 124810 UNITS THE ACEA NOW ESTIMATES THE EC MARKET WILL BE DOWN AT LEAST 14 FOR THE FULL YEAR RATHER THAN THE PREVIOUSLY PREDICTED 10 AS A GROUP JAPANESE AUTO MAKERS SAW THEIR EUROPEAN SALES DIP 109 IN APRIL FROM A YEAR EARLIER A RELATIVELY MILD DECLINE COMPARED WITH THEIR EUROPEAN COUNTERPARTS BUT WHAT GALLS EUROPEANS IS JAPAN'S STEADY GAIN IN MARKET SHARE THE AGREEMENT AIMED AT LETTING THE JAPANESE SLOWLY GAIN UNHINDERED ACCESS TO THE EC WAS BASED ON THE ASSUMPTION THAT JAPANESE SALES GROWTH WOULD COME ENTIRELY FROM EXPANSION OF THE TOTAL MARKET BUT THE SYSTEM DOESN'T WORK WHEN THE TOTAL MARKET IS SHRINKING WHEN THE MARKET GOES DOWN THE JAPANESE MARKET SHARE SHOULDN'T GO UP SAYS LOUIS SCHWEITZER PRESIDENT OF FRANCE'S RENAULT SA MR SCHWEITZER SAYS IT ISN'T POSSIBLE TO REGULATE JAPANESE SALES YEARBYYEAR AS THE ECJAPAN AGREEMENT ATTEMPTS TO DO IF THEY OVERSELL IN ONE YEAR THEN THEY SHOULD BE REQUIRED TO CARRY THAT OVER INTO THE NEXT SELLING THAT MANY FEWER HE SAYS OR IT COULD WORK THE OTHER WAY AROUND IF IT WAS IN THEIR FAVOR 9305270137 930527 DIEBOLD FORMS CHINESE VENTURE CANTON OHIO DIEBOLD INC A MAKER OF AUTOMATED TELLER MACHINES AND SECURITY PRODUCTS SAID IT FORMED A JOINT VENTURE TO MAKE ATMS IN CHINA TERMS WEREN'T DISCLOSED DIEBOLD SAID IT WILL OWN 65 OF THE VENTURE SHANGHAI FAREAST AEROTECHNOLOGY IMPORT & EXPORT CORP AND INDUSTRIAL AND COMMERCIAL BANK OF CHINA WILL OWN THE REST DIEBOLD SAID THE VENTURE WILL INCREASE ITS ATM SALES SIGNIFICANTLY 9305270136 930527 BRIDGESTONE/FIRESTONE TO EXPAND NASHVILLE TENN BRIDGESTONE/FIRESTONE INC SAYING IT IS GAINING MARKET SHARE ANNOUNCED A 110 MILLION EXPANSION OF ITS WARREN COUNTY TENN TRUCK AND BUS TIRE PLANT THE PROJECT WILL BOOST DAILY PRODUCTION BY 76 TO 4400 TIRES FROM 2500 AND EMPLOYMENT BY 110 WORKERS TO 640 THE EXPANSION ALSO WILL ALLOW BRIDGESTONE/FIRESTONE TO CUT ITS SHIPMENTS OF TRUCK AND BUS TIRES FROM JAPAN HOME OF ITS PARENT COMPANY TOKYOBASED BRIDGESTONE CORP 9305270135 930527 UNIVERSAL HOLDING ACQUISITION BREWSTER NY UNIVERSAL HOLDING CORP SAID ONE OF ITS UNITS ACQUIRED AMERICAN PIONEER LIFE INSURANCE CO FROM AMERICAN PIONEER HOLDINGS CO FOR 7 MILLION AMERICAN PIONEER LIFE WHICH WILL BECOME A UNIT OF UNIVERSAL HOLDING'S AMERICAN PROGRESSIVE LIFE & HEALTH INSURANCE CO UNIT HAS ASSETS OF 50 MILLION ANNUAL LIFE AND HEALTH PREMIUMS OF MORE THAN 27 MILLION AND STATUTORY SURPLUS OF 72 MILLION AMERICAN PIONEER LIFE SPECIALIZES IN LIFE INSURANCE ANNUITIES AND ACCIDENT AND HEALTH INSURANCE 9305270134 930527 TECHNOLOGY ABORTION PILL IS 99 EFFECTIVE WITH ORAL HORMONE BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL AN ABORTION REGIMEN THAT IS LIKELY TO BE USED IN THE US TESTING OF THE ABORTION PILL RU486 IS 99 EFFECTIVE FRENCH RESEARCHERS FOUND TWO STUDIES PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE PROVIDE A PREVIEW TO THE POPULATION COUNCIL'S US CLINICAL TRIALS OF RU486 THAT ARE EXPECTED TO BEGIN THIS YEAR THE FRENCH STUDIES TESTED TWO REGIMENS USING RU486 AND ANOTHER DRUG AN ORAL PROSTAGLANDIN PREVIOUS PROCEDURES WHICH WERE ABOUT 95 EFFECTIVE USED RU486 AND AN INJECTABLE OR VAGINAL SUPPOSITORY FORM OF THE PROSTAGLANDIN BESIDES REDUCING THE CHANCES FOR AN INCOMPLETE OR FAILED ABORTION THE ORAL PROSTAGLANDIN IS SIMPLER TO ADMINISTER AND SHOULD INCREASE THE CONVENIENCE OF ABORTIONS ACCORDING TO THE RESEARCHERS LED BY REMI PEYRON OF ROUSSELUCLAF SA WHICH MAKES RU486 ROUSSELUCLAF IS MAJORITY OWNED BY HOECHST AG OF GERMANY IN THE FIRST STUDY 505 WOMEN IN EARLY PREGNANCY RECEIVED RU486 AND IF THE ABORTION HADN'T OCCURRED AN ORAL PROSTAGLANDIN 48 HOURS LATER ABOUT 3 OF THE WOMEN DIDN'T NEED THE PROSTAGLANDIN OF THOSE WHO DID 61 EXPERIENCED ABORTIONS WITHIN FOUR HOURS AND 33 AT SOME LATER TIME IN ALL THE PROCEDURE WAS EFFECTIVE IN 97 OF THE WOMEN THE SECOND STUDY FOLLOWED THE SAME PROCEDURE IN 390 WOMEN EXCEPT A SECOND SMALLER DOSE OF PROSTAGLANDIN WAS GIVEN IF THE ABORTION HADN'T OCCURRED WITHIN FOUR HOURS OF THE INITIAL DOSE THE ADDITIONAL DOSE RAISED THE EFFECTIVENESS RATE TO 99 THE POPULATION COUNCIL IS STILL WORKING OUT ITS PLANS FOR THE US TESTS OF RU486 BUT IT'S HIGHLY LIKELY THE TWODOSE ORAL PROSTAGLANDIN PROCEDURE WILL BE USED SAID WAYNE BARDIN DIRECTOR OF THE POPULATION COUNCIL'S CENTER FOR BIOMEDICAL RESEARCH THE ORGANIZATION IS STILL IN CONTRACT NEGOTIATIONS WITH ROUSSELUCLAF HE SAID ABOUT 20 SMALL COMPANIES HAVE CONTACTED THE POPULATION COUNCIL ABOUT MANUFACTURING AND MARKETING THE DRUG HE SAID BUT THE ORGANIZATION WON'T BEGIN DISCUSSIONS WITH THEM UNTIL THE CONTRACT WITH ROUSSELUCLAF IS SIGNED 9305270133 930527 TRADE PACT EXPECTED TO CLEAR CANADA'S LOWER HOUSE DESPITE SOME RESERVATIONS BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S HOUSE OF COMMONS IS EXPECTED TO APPROVE THE NORTH AMERICAN FREE TRADE AGREEMENT TODAY DESPITE CANADIAN AND MEXICAN DIFFERENCES WITH THE US OVER PROPOSED ENVIRONMENTAL AND LABOR SIDE ACCORDS THE AGREEMENT WHICH IS TO TAKE EFFECT JAN 1 ALSO IS EXPECTED TO BE APPROVED SOON BY THE CANADIAN SENATE THE US AND MEXICAN LEGISLATURES ALSO MUST RATIFY THE ACCORD WHICH BROADENS THE EXISTING USCANADA FREE TRADE PACT TO INCLUDE MEXICO THE AGREEMENT WOULD PHASE OUT MOST TRADE BARRIERS AMONG THE THREE COUNTRIES IT WAS SIGNED IN DECEMBER BY FORMER PRESIDENT BUSH CANADIAN PRIME MINISTER BRIAN MULRONEY AND MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI BUT PRESIDENT CLINTON IN KEEPING WITH AN ELECTION PLEDGE HAS SAID HE WON'T SUBMIT THE TRADE PACT TO CONGRESS FOR RATIFICATION UNLESS THE US IS ABLE TO NEGOTIATE EFFECTIVE SIDE AGREEMENTS ON LABOR AND ENVIRONMENTAL ISSUES CANADIAN TRADE MINISTER MICHAEL WILSON SAID CANADA REMAINS OPPOSED TO THE CLINTON ADMINISTRATION'S PROPOSAL THAT THE SIDE ACCORDS INCLUDE TRADE SANCTIONS TO ENSURE THAT LABOR AND ENVIRONMENTAL RULES ARE ENFORCED IN THE THREE NATIONS US CRITICS OF THE TRADE AGREEMENT CLAIM THAT UNLESS MEXICO IN PARTICULAR IS REQUIRED TO ENFORCE ITS LABOR AND ENVIRONMENTAL LAWS US COMPANIES WILL TEND TO SHIFT THEIR OPERATIONS THERE TO TAKE ADVANTAGE OF LAX REGULATION MR WILSON SAID THE THREE COUNTRIES HOPE TO COMPLETE NEGOTIATIONS ON THE SIDE AGREEMENTS BY JULY 1 IF THAT DEADLINE IS MET HE SAID THE PROSPECTS ARE GOOD FOR THE OVERALL TRADE ACCORD TO BE IMPLEMENTED JAN 1 AS PLANNED DESPITE UNCERTAINTIES OVER THE SIDE ACCORDS MR WILSON SAID THE GOVERNMENT WANTS PARLIAMENT TO APPROVE THE MAIN TRADE PACT NOW TO ENCOURAGE CANADIAN BUSINESS TO PREPARE FOR THE PLANNED DISMANTLING OF BARRIERS AMONG THE THREE NATIONS WHICH HAVE A COMBINED POPULATION OF 360 MILLION ANOTHER GOVERNMENT OFFICIAL SAID THE GOVERNMENT ALSO WANTS THE LEGISLATION PASSED NOW BECAUSE WITH AN ELECTION DUE BY NOVEMBER THE PARLIAMENTARY TIMETABLE IS UNCERTAIN A DATE FOR THE ELECTION HASN'T YET BEEN ANNOUNCED PRESSURE FOR VOTE TO BRING THE TRADE LEGISLATION TO A FINAL HOUSE OF COMMONS VOTE TODAY THE GOVERNMENT WAS FORCED TO USE ITS MAJORITY TO CUT OFF DEBATE ANGRY OPPOSITION MEMBERS DEMANDED THAT THE TRADE AGREEMENT BE EITHER CHANGED OR SCRAPPED PAUL MARTIN AN OPPOSITION LIBERAL PARTY MEMBER SAID IT WAS MORALLY REPREHENSIBLE FOR THE GOVERNMENT TO PUSH THE ENABLING LEGISLATION FOR THE TRADE ACCORD THROUGH PARLIAMENT BEFORE CANADIANS KNOW THE PROVISIONS OF THE SIDE AGREEMENTS WHICH ARE STILL BEING NEGOTIATED THE BUSINESS COUNCIL OF NATIONAL ISSUES COMPOSED OF THE CHIEF EXECUTIVES OF 150 MAJOR CANADIAN COMPANIES PRAISED THE TRADE ACCORD AS A FORWARDLOOKING TRADE ARRANGEMENT THAT OVER TIME SHOULD PRODUCE TANGIBLE BENEFITS FOR CANADA BUT THE COUNCIL SAID IT WAS OPPOSED TO INCORPORATING TRADE SANCTIONS IN ANY SIDE AGREEMENTS PROTECTIONISTS COULD USE SUCH PENALTY PROVISIONS TO HARASS CANADIAN EXPORTERS IT SAID 9305270132 930527 PURCHASE BY HEALTHTRUST NASHVILLE TENN HEALTHTRUST INC SAID IT COMPLETED THE PURCHASE OF A TEXAS HOSPITAL FOR 685 MILLION IN MARCH THE COMPANY SAID THE PURCHASE PRICE FOR THE 182BED MEDICAL CENTER WAS 85 MILLION AND SOME WORKING CAPITAL THE AMOUNT OF WHICH WASN'T DISCLOSED A SPOKESWOMAN FOR THE COMPANY SAID THE PRICE DROP REFLECTS A NUMBER OF FACTORS REVEALED IN A STUDY OF THE HOSPITAL'S OPERATIONS THE HOSPITAL BASED IN CONROE TEXAS WAS OWNED BY THE MONTGOMERY COUNTY HOSPITAL DISTRICT HEALTHTRUST BASED IN NASHVILLE HAS 84 AFFILIATE HOSPITALS IN 21 STATES 9305270131 930527 DIVIDEND NEWS PROSPECT GROUP INC PROSPECT GROUP INC NEW YORK SAID ITS 1FOR10 REVERSE SPLIT WILL TAKE EFFECT AT THE OPENING OF BUSINESS TUESDAY THE SPLIT WILL REDUCE COMMON SHARES OUTSTANDING TO 23 MILLION FROM 233 MILLION PROSPECT SAID ITS NASDAQ TRADING SYMBOL WILL CHANGE TO PROSD FOR ONE MONTH AND SUBSEQUENTLY REVERT TO PROS ITS CURRENT SYMBOL THE COMPANY WHICH ADOPTED A PLAN OF COMPLETE LIQUIDATION IN 1990 HAS DISTRIBUTED THE BULK OF ITS ASSETS AND SAID IT DOESN'T ANTICIPATE MAKING ADDITIONAL LIQUIDATING DISTRIBUTIONS IN THE FORESEEABLE FUTURE THE COMPANY CURRENTLY HOLDS ABOUT 26 MILLION IN CASH INCLUDING RESERVES AND A SMALL BUSINESS INVESTMENT COMPANY 9305270130 930527 BUSINESS BRIEFS BANC ONE COLUMBUS OHIO AGREED TO ACQUIRE MID STATES BANCSHARES INC FOR ABOUT 325 MILLION IN STOCK COMPRESSION LABS INC RECEIVED AN 18 MILLION ORDER FROM ELECTRONIC DATA SYSTEMS CORP FOR ITS SPECTRUMSAVER COMPRESSED DIGITAL VIDEO SATELLITE BROADCAST SYSTEM RANDOM ACCESS INC SIGNED A FIVEYEAR CONTRACT WITH U S WEST TO SUPPLY THE REGIONAL TELEPHONE COMPANY WITH MICROCOMPUTER HARDWARE AND SERVICES TERMS WEREN'T DISCLOSED FIRST INTERSTATE BANCORP AGREED TO BUY CAL REP BANCORP OF BAKERSFIELD CALIF IN A STOCK SWAP VALUED AT 68 MILLION PURE TECH INTERNATIONAL INC ACQUIRED ALL OF THE STOCK OF PRIVATELY HELD STYREX INDUSTRIES INC TERMS WEREN'T DISCLOSED AMERICAN RECREATION CENTERS INC SOLD ITS JUST GAMES INC VIDEO GAMES BUSINESS TO SAN DIEGO BUSINESSMAN FREDERICK GILLMANN TERMS WEREN'T DISCLOSED STANDARD REGISTER CO ENTERED INTO A JOINT VENTURE TO MAKE BUSINESS FORMS WITH RUSSIA'S TECHPOL PC 9305270129 930527 AT&T GETS CONTRACT NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WAS SELECTED BY TELEWAY JAPAN CORP A JAPANESE LONGDISTANCE COMPANY TO SUPPLY SOME OF ITS LATEST GENERATION OF NETWORK EQUIPMENT AND SOFTWARE THE EQUIPMENT AND SOFTWARE INCLUDING AT&T'S ADVANCED 5ESS2000 DIGITAL SWITCHES WILL ASSIST TELEWAY IN PROVIDING ADVANCED INTELLIGENT NETWORK CAPABILITIES THE CONTRACT IS VALUED AT MORE THAN 20 MILLION AT&T SAID TELEWAY IS ONE OF THREE NEW LONGDISTANCE COMMON CARRIERS SERVING JAPAN WITH THE AT&T EQUIPMENT AND RELATED SOFTWARE TELEWAY WILL BE ABLE TO PROVIDE ITS CUSTOMERS WITH ENHANCED SERVICES SUCH AS TOLLFREE CALLING AND VIRTUAL PRIVATE NETWORKS 9305270128 930527 PSI IS CLEARED FOR CONSTRUCTION PLAINFIELD INDPSI RESOURCES INC SAID THE INDIANA UTILITY REGULATORY COMMISSION ISSUED CERTIFICATES OF NEED CLEARING THE WAY FOR CONSTRUCTION TO BEGIN ON A COAL GASIFICATION PLANT AND TURBINE GENERATOR THE ELECTRIC UTILITY PLANS TO BUILD NEAR TERRE HAUTE IND THE PROJECT IS A JOINT VENTURE BETWEEN THE UTILITY'S PSI ENERGY SUBSIDIARY AND DESTEC ENERGY A SUBSIDIARY OF DOW CHEMICAL CO PSI RESOURCES SAID THE COAL GASIFICATION PROJECT HAD BEEN IDENTIFIED BY IPALCO ENTERPRISES INC WHICH IS ATTEMPTING A HOSTILE TAKEOVER OF PSI AS A CANDIDATE FOR CANCELLATION IPALCO IS THE PARENT OF INDIANAPOLIS POWER & LIGHT CO 9305270127 930527 SKILLSTANDARDS BILL RECEIVES APPROVAL OF SENATE PANEL BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE FIRST MAJOR STEP TOWARD CREATING A NATIONAL SYSTEM TO CERTIFY WORKER ABILITIES THE SENATE LABOR COMMITTEE APPROVED ESTABLISHING A BOARD TO HELP SET WORKPLACE SKILL STANDARDS THIS IS ABOUT CHANGING THE WAY YOU THINK ABOUT JOBS SAID PHYLLIS EISEN SENIOR POLICY DIRECTOR AT THE NATIONAL ASSOCIATION OF MANUFACTURERS THESE ARE THE BUILDING BLOCKS FOR JOBS BOTH REPUBLICANS AND DEMOCRATS LIKE THE IDEA OF SKILL STANDARDS AND THE LEGISLATION IS LIKELY TO EMERGE FROM CONGRESS IN THE NEXT FEW MONTHS THE 28MEMBER BOARD AN IDEA BACKED BY THE CLINTON ADMINISTRATION WOULD INCLUDE BUSINESSMEN WORKERS GOVERNMENT OFFICIALS AND EDUCATORS AFTER LOWERLEVEL GROUPS DETERMINE WHAT SKILLS ARE NEEDED TO ACCOMPLISH VARIOUS JOBS AND HOW TO HELP WORKERS GET THOSE SKILLS THE BOARD WOULD APPROVE THE STANDARDS WORKERS WHO COMPLETE TRAINING PROGRAMS BASED ON THE STANDARDS WOULD GET CERTIFICATION THE LABOR COMMITTEE SPLIT ALONG PARTY LINES IN YESTERDAY'S VOTE OVER HOW MUCH OF A ROLE BUSINESS OR GOVERNMENT WOULD PLAY IN THE PROCESS DEMOCRATS ARGUED THAT HAVING GOVERNMENT AS A SIGNIFICANT PLAYER WOULD HELP ENSURE THAT PUBLIC JOBTRAINING FUNDS ARE WELLSPENT REPUBLICANS COUNTERED THAT A BOARD LOADED WITH GOVERNMENT AND UNIONS WOULD LANGUISH BECAUSE INDUSTRY WOULD LOATHE IT THE DEMOCRATICBACKED BILL THAT WAS APPROVED WOULD GIVE EQUAL REPRESENTATION TO BUSINESS ORGANIZED LABOR AND EDUCATORS OR GOVERNMENT OFFICIALS REPUBLICANS LED BY NANCY KASSEBAUM OF KANSAS UNSUCCESSFULLY PROPOSED A BOARD OF SIX SMALLBUSINESS MEMBERS SIX BIGBUSINESS MEMBERS AND EIGHT MEMBERS FROM LABOR GROUPS EDUCATION OR GOVERNMENT IN BOTH VERSIONS THE BOARD ALSO WOULD INCLUDE THE SECRETARIES OF LABOR EDUCATION AND COMMERCE REPUBLICANS AND DEMOCRATS VOWED TO TRY TO COMPROMISE BEFORE THE MATTER COMES UP FOR A VOTE ON THE SENATE FLOOR IN THE HOUSE STAFFERS ARE TRYING TO WORK OUT DIFFERENCES BEFORE THE ISSUE COMES BEFORE THE EDUCATION AND LABOR COMMITTEE AS PART OF THE EDUCATIONREFORM BILL SKILL STANDARDS ARE BEGINNING TO POP UP IN A VARIETY OF INDUSTRIES WHILE THE BUILDING TRADES HAVE LONG HAD PROGRAMS TO CERTIFY JOURNEYMEN AND MASTER CARPENTERS EMPLOYERS IN OTHER INDUSTRIES HAVE BEEN FORCED TO GUESS WHETHER INDIVIDUALS WHO CLAIM CERTAIN EXPERIENCE ACTUALLY CAN DO THE JOB THE RETAIL AND ELECTRONICS INDUSTRIES ARMED WITH GRANTS FROM THE LABOR DEPARTMENT ARE TRYING TO DETERMINE HOW TO SET SKILL STANDARDS FOR JOBS FROM SALES CLERK TO PRODUCTION MANAGER 9305270126 930527 SWISSAIR MULLS OPTIONS TO MERGER BERN SWITZERLAND THE SWISS GOVERNMENT SUGGESTED SWISSAIR CONSIDER ALTERNATIVES TO A MERGER SWISSAIR SCANDINAVIAN AIRLINE SYSTEM KLM ROYAL DUTCH AIRLINES AND AUSTRIAN AIRLINES HAVE SAID THEY ARE DISCUSSING THE FORMATION OF A JOINT COMPANY THAT COULD LEAD TO A MERGER IN A LATER STAGE BUT THE SWISS GOVERNMENT CABINET OR FEDERAL COUNCIL SUGGESTED THAT THE AIRLINE SHOULD CONSIDER OTHER OPTIONS SUCH AS REMAINING INDEPENDENT WITH A NICHE MARKET POLICY OR PURSUING STRONGER COOPERATION WITH OTHER COMPANIES GOVERNMENT SPOKESMAN ACHILLE CASANOVA SAID SWISSAIR ISN'T JUST ANY OTHER BUSINESS BUT RATHER A TRADEMARK OF OUR COUNTRY A SWISSAIR SPOKESMAN SAID THE COMPANY WOULDN'T MAKE ANY DECISION ON THE PROJECT WITHOUT CONSULTING THE GOVERNMENT 9305270125 930527 MATTHEWS STUDIO BUYS KEYLITE BURBANK CALIF MATTHEWS STUDIO EQUIPMENT GROUP SAID IT ACQUIRED FILM AND TELEVISION EQUIPMENT RENTAL COMPANY KEYLITE HOLDINGS INC FOR 14 MILLION RESTRICTED SHARES OF COMMON STOCK VALUED AT 42 MILLION THE PARTIES VALUED MATTHEWS STOCK AT 3 A SHARE FOR PURPOSES OF THE TRANSACTION BECAUSE OF FEDERAL SECURITIES REGULATIONS RESTRICTING TRANSFER OF THE SHARES FOR TWO YEARS MATTHEWS MAKES AND MARKETS GRIP CAMERA AND OTHER FILM SUPPORT EQUIPMENT AND PROPRIETARY ELECTROMECHANICAL CAMREMOTER SYSTEMS 9305270124 930527 INTERNATIONAL ITALIAN BANK LOANS RISE MILAN LENDING BY ITALIAN BANKS ROSE 55 IN APRIL FROM A YEAR EARLIER ACCORDING TO PROVISIONAL STATISTICS FROM THE BANK OF ITALY THE APRIL RATE WAS DOWN A SHADE FROM A 56 INCREASE IN MARCH THE CENTRAL BANK SAID LENDING OF LIRA FUNDS ROSE 51 IN APRIL FROM A YEAR EARLIER THIS COMPARED WITH INCREASES OF 4 IN MARCH AND 46 IN FEBRUARY 9305270123 930527 INTERNATIONAL NATO OFFICIALS QUESTION VALIDITY OF BOSNIAN PLAN BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS FOR MANY WESTERN DEFENSE OFFICIALS THE BEST THING ABOUT THE LATEST BOSNIAN PEACE PLAN IS THAT IT MIGHT NOT BE IMPLEMENTED THE OFFICIALS WIDELY BELIEVE THAT THE SAFE AREAS PLAN AGREED TO LAST WEEKEND BY THE US RUSSIA BRITAIN FRANCE AND SPAIN IS A POOR IDEA THAT WOULD EFFECTIVELY PUNISH BOSNIAN MUSLIMS AND REWARD SERBIAN AGGRESSION HOWEVER THEY FEEL THAT THE PLAN WILL PROBABLY BE SO WEAKLY SUPPORTED THAT THOSE CONSEQUENCES WILL BE LIMITED AND THE BELIEF HERE AT NORTH ATLANTIC TREATY ORGANIZATION HEADQUARTERS IS THAT THE PLAN MAY NOT BE CARRIED OUT AT ALL WESTERN DEFENSE MINISTERS EMERGED FROM TWO DAYS OF NATO MEETINGS WITHOUT ENDORSING THE SAFEAREAS PLAN WHICH WOULD GIVE BOSNIAN MUSLIMS REFUGE FROM SERB ATTACKS IN HAVENS PROTECTED BY UNITED NATIONS TROOPS WHO IN TURN WOULD BE PROTECTED BY US AIR POWER GERMAN DEFENSE MINISTER VOLKER RUEHE WHO OPPOSES THE PLAN NOTED THAT THE GROUP'S POSTMEETING COMMUNIQUE PROMISES ONLY TO CONSIDER POSITIVELY ANY UN REQUEST FOR NATO HELP THE PLAN ISN'T DEAD BUT IT WILL BE ELABORATED UPON AND PERHAPS MODIFIED HE SAID US DEFENSE SECRETARY LES ASPIN AT HIS FIRST NATO MEETING AS PENTAGON CHIEF SAID HE FOUND A GENERAL RECEPTIVITY TO THE SAFEAREAS PLAN I BELIEVE IT WILL BE IMPLEMENTED HE SAID BUT EVEN MR ASPIN CONCEDED THAT THE PLAN REMAINS INCHOATE WITH MANY UNANSWERED QUESTIONS ABOUT HOW THE HAVENS MIGHT WORK NATO SECRETARY GENERAL MANFRED WOERNER WHO IS SAID BY ANOTHER SENIOR NATO OFFICIAL TO PRIVATELY SHUDDER AT THE IDEA OF SAFE AREAS TOLD A NEWS CONFERENCE THERE ARE LOTS OF QUESTIONS WHAT IS SAFE' WHO DEFENDS WHOM WHAT ARE THE RULES OF ENGAGEMENT WHAT IS THE CONNECTION TO THE NEXT STEP WITHDRAWING SERBIAN FORCES SENIOR NATO OFFICIALS WERE EVEN MORE CRITICAL OF THE PLAN WHEN SPEAKING ON CONDITIONS OF ANONYMITY WITH ONE SAYING IT SIMPLY REWARDS SERB AGGRESSION WHICH COULD ENCOURAGE MORE VIOLENCE WHAT IT'S SAYING TO THE MUSLIMS IS YOU'RE GOING TO BE IN A PRISON CAMP AND YOU'LL HAVE NO ECONOMY' SAID ANOTHER BY CREATING CONDITIONS AKIN TO THE PALESTINIAN REFUGEE CAMPS THIS ARGUMENT GOES THE PLAN MAY CREATE A PROBLEM THAT LASTS FOR DECADES JOINT CHIEFS OF STAFF CHAIRMAN COLIN POWELL PRIVATELY EXPRESSED CONCERNS TO NATO OFFICIALS ABOUT THE CLINTON ADMINISTRATION'S FOREIGN POLICY BEING ADRIFT HE'S VERY CONCERNED BY THE LACK OF DIRECTION SAID A DIPLOMAT IN BRUSSELS 9305270122 930527 ABREAST OF THE MARKET INDUSTRIALS SURGE ON FALLING RATES TO THIRD RECORD IN UNDER A WEEK BY ANITA RAGHAVAN AND CAITLIN MOLLISON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FALLING INTEREST RATES TRIGGERED A SPIRITED RALLY IN STOCKS SENDING THE DOW JONES INDUSTRIAL AVERAGE TO ITS THIRD RECORD IN LESS THAN A WEEK THE INDUSTRIALS JUMPED 2353 POINTS TO 354016 SURPASSING THE OLD HIGH OF 352328 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX CLIMBED 459 TO 45344 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED UP 220 TO 24990 INTEREST RATESENSITIVE ISSUES SUCH AS BANKS AND BROKERAGE FIRMS LED THE CHARGE JP MORGAN CLIMBED 1 1/8 TO 67 7/8 BANKAMERICA GAINED 1 TO 45 3/8 WELLS FARGO SURGED 3 5/8 TO 107 1/8 MERRILL LYNCH ROSE 2 TO 76 1/8 AND PAINEWEBBER ADDED 1 3/8 TO 27 3/4 ADVANCING ISSUES OUTNUMBERED DECLINERS 1264 TO 654 VOLUME ON THE BIG BOARD TOTALED 274180000 SHARES UP FROM 222090000 SHARES TUESDAY DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY SAID NEWS THAT THE TREASURY'S AUCTION OF FIVEYEAR NOTES WENT BETTER THAN EXPECTED HELPED SET A FIRE UNDER THE BOND MARKET FALLING INTEREST RATES IN TURN SPARKED THE STOCK MARKET RALLY INVESTORS' PERCEPTIONS ARE NOT AS GLOOMY AS THEY'VE BEEN FOR MANY MONTHS SAID MR JARRETT AND THAT CAN FEED ON ITSELF INDEED INVESTORS INTELLIGENCE A NEWSLETTER THAT TRACKS MARKET SENTIMENT OF 130 INVESTMENT ADVISERS REPORTED YESTERDAY THAT BULLISH SENTIMENT HAD RISEN TO 38 FROM 321 LAST WEEK MEANWHILE BEARISH SENTIMENT HAD DROPPED TO 37 FROM 384 LAST WEEK MR JARRETT SAID HE FOUND YESTERDAY'S RALLY ENCOURAGING NOT ONLY DID THE DOW JONES INDUSTRIALS ADVANCE BUT OTHER MARKET BAROMETERS INCLUDING THE S&P 500 AND THE NASDAQ COMPOSITE INDEX ALSO ROSE ALTHOUGH THEY REMAIN BELOW THEIR RECORD HIGHS WHAT'S MORE THE DOW JONES UTILITY AVERAGE WHICH HAD BEEN LAGGING LATELY SURGED 256 TO 23873 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX SOARED 306 TO 43713 A RECORD TECHNOLOGY STOCKS WERE AMONG THE HOTTEST ISSUES IN THE MARKET YESTERDAY THE GROUP WAS BOOSTED BY NEWS THAT MERRILL LYNCH HAD RAISED ITS 1994 EARNINGS ESTIMATE FOR INTEL WHICH IS TRADED OVER THE COUNTER TO 14 A SHARE FROM 1180 INTERNATIONAL BUSINESS MACHINES ADVANCED 2 3/8 TO 52 3/4 COMPAQ COMPUTER CATAPULTED 3 TO 59 1/2 AND EVEN TANDY GAINED 2 TO 31 1/8 TANDY SAID THAT AFTER IT COMPLETES THE SALE OF ITS COMPUTER MANUFACTURING BUSINESS IT WILL DIVEST MOST OF ITS MANUFACTURING ASSETS INSTEAD OF SPINNING THEM OFF AS PREVIOUSLY ANNOUNCED TANDY SAID IT EXPECTS TO REPORT A 70 MILLION CHARGE IN THE SECOND QUARTER AS A RESULT OF THE DIVESTMENTS TIME WARNER GAINED 1 3/8 TO 38 SEAGRAM SAID IT ACQUIRED 21124300 SHARES OR A 57 STAKE IN TIME WARNER SOLELY FOR PURPOSES OF INVESTMENT SEAGRAM SAID ITS HARTSCOTT RODINO FILING SEEKS APPROVAL FOR IT TO ACQUIRE UP TO A MAXIMUM OF 15 OF TIME WARNER SHARES OUTSTANDING ALTHOUGH PREDICTING IMPROVED EARNINGS THIS YEAR DAYTON HUDSON CALLED THE RETAIL ENVIRONMENT DIFFICULT FOR THE FISCAL YEAR ENDED JAN 30 IT REPORTED NET INCOME OF 383 MILLION OR 482 A SHARE ON REVENUE OF 179 BILLION DILLARD DEPARTMENT STORES WAS OFF 1 3/8 AT 40 1/4 AND JC PENNEY RETREATED 1 3/4 TO 46 5/8 STRONG EARNINGS SENT THE STOCK OF SEVERAL COMPANIES HIGHER COMMERCIAL INTERTECH IMPROVED 1 1/4 TO 20 3/4 THE HYDRAULIC COMPONENT MANUFACTURER REPORTED FISCAL SECONDQUARTER NET OF 25 CENTS A DILUTED SHARE COMPARED WITH A LOSS OF ONE CENT A DILUTED SHARE A YEAR EARLIER DATARAM ADVANCED 1 TO 11 1/8 AFTER REPORTING FISCAL FOURTHQUARTER EARNINGS OF 34 CENTS A SHARE COMPARED WITH NET OF 27 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY DEVELOPS MAKES AND MARKETS COMPUTER ADDIN MEMORY PRODUCTS MEMBERS OF THE UNITED STEELWORKERS OF AMERICA AND THE ALUMINUM BRICK AND GLASS WORKERS INTERNATIONAL UNION VOTED TO AUTHORIZE STRIKES AGAINST ALUMINUM CO OF AMERICA AND REYNOLDS METALS IF THEIR NEGOTIATORS DETERMINE SUCH ACTION IS NECESSARY ALCOA DIPPED 1/2 TO 68 3/4 WHILE REYNOLDS METALS SANK 1 TO 46 7/8 TOPPING THE MOSTACTIVES LIST WAS BRITISH PETROLEUM WHICH MOVED UP 5/8 TO 58 3/8 HEAVY TRADING ON THE ISSUE WAS LINKED TO A DIVIDEND PLAY AFTER THE MARKET CLOSED AN INITIAL PUBLIC OFFERING OF SIX MILLION COMMON SHARES OF HEALTHCARE REALTY TRUST WAS PRICED AT 1950 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE 9305270121 930527 VW IS FREE TO HIRE 7 GM EXMANAGERS LOPEZ BROUGHT WITH HIM COURT RULES BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN A GERMAN COURT RULED VOLKSWAGEN AG IS FREE TO HIRE SEVEN FORMER GENERAL MOTORS CORP MANAGERS THAT J IGNACIO LOPEZ DE ARRIORTUA BROUGHT WITH HIM WHEN HE JUMPED TO THE EUROPEAN CAR MAKER THIS YEAR THE DECISION IS THE LATEST ROUND IN THE ESCALATING LEGAL BATTLE SPARKED BY MR LOPEZ'S DEPARTURE FROM GM GM HAS ACCUSED MR LOPEZ FORMERLY ITS PURCHASING CHIEF OF STEALING HORDES OF SENSITIVE DOCUMENTS THAT CASE IS SEPARATE FROM YESTERDAY'S DECISION AND REMAINS UNDER INVESTIGATION BY GERMAN PROSECUTORS THE SEVEN MANAGERS NAMED IN YESTERDAY'S HEARING WERE ALL FORMER EMPLOYEES OF GM OR ADAM OPEL AG THE CAR MAKER'S GERMANBASED SUBSIDIARY GM HAD FILED A MOTION IN A FRANKFURT COURT TO BLOCK THEM FROM WORKING FOR VW FOR ONE YEAR CLAIMING THEIR HIRING WOULD UNFAIRLY DAMAGE GM'S COMPETITIVE POSITION THE DECISION HAS NO EFFECT ON AN EARLIER LEGAL MOTION WON BY GM BLOCKING VW AND MR LOPEZ FROM HIRING ANY MORE GM OR OPEL EXECUTIVES WHILE THE TWO COMPANIES SLUG IT OUT IN COURT THEY ARE ALSO LETTING MORE DETAILS SLIP ABOUT MR LOPEZ'S CONTROVERSIAL MOVE IN AN INTERVIEW PUBLISHED YESTERDAY BY THE FINANCIAL TIMES OF LONDON VW CHAIRMAN FERDINAND PIECH FLATLY DENIED HE EVER SOUGHT TO WOO MR LOPEZ AWAY FROM GM RATHER MR PIECH CLAIMS MR LOPEZ APPROACHED HIM BEFORE CHRISTMAS LAST YEAR THE ISSUE IS EXPLOSIVE AT GM WHICH CLAIMS VW OFFERED MR LOPEZ AND OTHER TOP MANAGERS ASTRONOMICAL SALARY INCREASES TO SWITCH COMPANIES IN MARCH AS FOR YESTERDAY'S CASE VW WAS CLEARLY BASKING IN ITS SMALL VICTORY THE COMPANY WHICH OFTEN HAS TROUBLE PROMPTLY DISTRIBUTING IMPORTANT INFORMATION TO THE NEWS MEDIA RUSHED OUT A CURT FAX TRUMPETING THE OUTCOME AS AN IMPORTANT VICTORY AGAINST OPEL/GENERAL MOTORS VW'S LAWYER IN THE CASE JUERGEN KICKER SAID AFTER THE HEARING THAT THE MERE ADVANTAGE OF HAVING PEOPLE WHO CAN THINK PLAN AND MAKE DECISIONS COSTEFFECTIVELY DOESN'T VIOLATE ANY LAW GOVERNING FAIR COMPETITION MR KICKER ALSO USED THE OPPORTUNITY TO SPEAK OUT ABOUT THE CHARGES THAT MR LOPEZ AND OTHER FORMER EMPLOYEES STOLE DOCUMENTS HE CONTENDED THAT GM HAS FAILED TO MAKE A CREDIBLE CASE THAT SECRETS MADE THEIR WAY TO VW THOUGH MR LOPEZ MR KICKER ALSO BASHED GERMANY'S INFLUENTIAL WEEKLY DER SPIEGEL WHICH CARRIES A DETAILED REPORT ABOUT THE CHARGES IN ITS LATEST ISSUE THE INFORMATION IN DER SPIEGEL MR KICKER HUFFED WAS FABRICATED LIED ABOUT ON THE BASIS OF AN OPEL LINE A GM SPOKESMAN IN DETROIT SAID THE COMPANY DECLINES TO COMMENT ON THE INJUNCTION RULING BECAUSE THE LEGAL DISPUTE IS STILL IN COURT MR LOPEZ SPEAKING AT AN INTERNATIONAL MANAGEMENT SYMPOSIUM AT THE UNIVERSITY OF ST GALLEN IN SWITZERLAND SAID A EUROPEAN MIDDLEMAN HAD INITIALLY CONTACTED BOTH HIM AND VW HE DECLINED TO GIVE FURTHER DETAILS 9305270120 930527 TYSON FOODS BUYS CHICKEN PLANT SPRINGDALE ARK TYSON FOODS SAID IT IS ACQUIRING A PARTIALLY BUILT CHICKENPROCESSING PLANT IN SEDALIA MO THAT WHEN COMPLETED WILL BOOST THE COMPANY'S POULTRY PRODUCTION BY 13 MILLION CHICKENS A WEEK THE FOOD PROCESSING COMPANY WHICH HATCHES AND PROCESSES ABOUT 28 MILLION CHICKENS WEEKLY SAID IT INTENDS TO COMPLETE CONSTRUCTION OF THE PLANT ADDING A CHICK HATCHERY AND WASTE WATER TREATMENT PLANT TO AN EXISTING PROCESSING FACILITY AND FEED MILL THE PLANT PREVIOUSLY WAS OWNED BY THE LOUIS RICH DIVISION OF PHILIP MORRIS COS TERMS OF THE PURCHASE WEREN'T DISCLOSED 9305270119 930527 PRUDENTIAL SECURITIES SUBJECT OF SEC PROBE OVER 1986 SETTLEMENT NEW YORK THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING WHETHER PRUDENTIAL SECURITIES INC MAY HAVE VIOLATED A 1986 SETTLEMENT REQUIRING STRICT REVIEWS OF BROKERAGE ACCOUNTS IN CERTAIN BRANCHES BETWEEN 1987 AND 1990 PEOPLE FAMILIAR WITH THE MATTER SAY THE MATTER IS PART OF A PREVIOUSLY REPORTED INVESTIGATION BY THE SEC INTO WHETHER PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM IMPROPERLY SOLD LIMITED PARTNERSHIPS AND OTHER INVESTMENTS IN THE 1980S THE PEOPLE SAID PRUDENTIAL SECURITIES A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA DECLINED TO COMMENT THE SEC AS IS ITS POLICY DECLINED TO CONFIRM OR DENY THE EXISTENCE OF AN INVESTIGATION THE PEOPLE SAID THE SEC IS EXAMINING WHETHER PRUDENTIAL BRANCH MANAGERS PROPERLY SUPERVISED BROKERS IN SEVERAL BRANCHES INCLUDING ATLANTA LAGUNA HILLS CALIF AND NEWPORT BEACH CALIF THE 1986 SETTLEMENT BETWEEN THE SEC AND PRUDENTIAL THEN KNOWN AS PRUDENTIALBACHE SECURITIES REQUIRED THE FIRM TO STRICTLY SUPERVISE BROKERS FOLLOWING ALLEGATIONS THAT BROKERS TRADED WITHOUT CLIENT AUTHORIZATION AND MADE UNSUITABLE INVESTMENTS AMONG OTHER THINGS NONE OF THE EXISTING MANAGERS OF THOSE BRANCHES ARE BEING SCRUTINIZED THE PEOPLE SAID AND ONLY ONE MANAGER WHOSE ACTIONS ARE BEING EXAMINED IS STILL EMPLOYED BY PRUDENTIAL THEY ADDED AS PREVIOUSLY REPORTED PRUDENTIAL IS IN DISCUSSIONS WITH THE SEC TO SETTLE CHARGES THAT THE FIRM IMPROPERLY SOLD INVESTMENTS PARTICULARLY LIMITED PARTNERSHIPS A SETTLEMENT IS EXPECTED LATER THIS YEAR THE PEOPLE SAID 9305270118 930527 ENTERPRISE HOLDERS' LOVE AFFAIR WITH FINGERMATRIX FOUNDER SOURS DISSIDENTS' PENDING COURT CASE TO ILLUSTRATE SOME PERILS IN GOING PUBLIC BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL ENTREPRENEUR MICHAEL SCHILLER IS DISCOVERING THE DOWNSIDE OF GOING PUBLIC SHAREHOLDERS WHO LOVED YOU WHEN THEY BOUGHT YOUR STOCK CAN SUDDENLY BECOME A THORN IN YOUR SIDE MR SCHILLER IS THE FOUNDER AND CHAIRMAN OF FINGERMATRIX INC A PIONEER OF FINGERPRINTRECOGNITION DEVICES AND OWNER OF 18 PATENTS I HAVE TO PINCH MYSELF AT TIMES IT'S SO OVERWHELMINGLY SEXY HE ONCE DECLARED FOR YEARS SHAREHOLDERS FOOTED FINGERMATRIX'S BILLS WHILE MR SCHILLER INDULGED IN HIS PASSION FOR THE TECHNOLOGY FEW RAISED QUESTIONS EVERYBODY ACCEPTED THAT THIS WAS A RESEARCHANDDEVELOPMENT COMPANY AND MICHAEL WAS THE BRAINS OF THE OUTFIT SAYS GORDON R MOLESWORTH A LONGTIME SHAREHOLDER AND A FORMER CONSULTANT TO THE NORTH WHITE PLAINS NY COMPANY NO MORE SHAREHOLDERS SAY THE COMPANY WHICH HAS BEEN FINANCED ALMOST ENTIRELY FROM PUBLIC AND PRIVATE SALES OF STOCK HAS ACCUMULATED LOSSES OF MORE THAN 52 MILLION SINCE IT WAS FOUNDED IN 1976 THEY BLAME THE 58YEAROLD MR SCHILLER WHO THEY SAY IGNORED THEIR IDEAS FOR TURNING THE COMPANY AROUND AND EXPLOITED HIS POSITION FOR HIS OWN ADVANTAGE IN MARCH A SHAREHOLDER GROUP LED BY MR MOLESWORTH ASKED MR SCHILLER TO STEP DOWN AS CHIEF EXECUTIVE HINTING AT A PROXY FIGHT IF HE DIDN'T THE COMPANY RESPONDED BY SELLING MR SCHILLER MORE SHARES AT TWO CENTS EACH ALTHOUGH THE MARKET PRICE WAS ABOUT 38 CENTS SO THAT HE COULD BOLSTER HIS STAKE IN THE COMPANY AND THUS WIN ANY SUCH FIGHT THE SHAREHOLDERS ALLEGE NOW IN FEDERAL COURT IN MANHATTAN THE DISSIDENTS ARE TRYING TO FORCE FINGERMATRIX TO RESCIND THE SALE THEY ALSO WANT A SPECIAL MEETING TO OUST THE COMPANY'S BOARD ACCORDING TO THE SUIT THE BOARD CONSISTS ONLY OF THE FOUNDER HIS SON AND A LONGTIME FRIEND FINGERMATRIX SAYS THERE IS A FOURTH DIRECTOR THE COMPANY'S RECENTLY NAMED PRESIDENT RAYMOND R NORAT THOUGH CONCEDING THAT IT IS IN DIRE FINANCIAL STRAITS FINGERMATRIX URGES SHAREHOLDERS TO BE PATIENT WE'RE NO DIFFERENT FROM POLAROID AND XEROX AND IBM IN THEIR INFANCIES SAYS SCOTT G SCHILLER THE FOUNDER'S SON AND DIRECTOR OF INVESTOR RELATIONS AT THE COMPANY TO BE A PIONEER MEANS TO SUFFER AND PAY YOUR DUES HE ADDS AS FOR THE DISSIDENTS HE SAYS WE CONSIDER THE LAWSUIT INSIGNIFICANT AND IRRELEVANT SPECIALISTS IN PRIVATE BUSINESS WARN THAT MANY ENTREPRENEURS INVITE TROUBLE BY RUNNING THEIR COMPANIES IN THE STYLE OF PRIVATE FIEFDOMS LONG AFTER THEY HAVE GONE PUBLIC GOING PUBLIC DOESN'T MEAN THAT YOU JUST GET MONEY FROM THE PUBLIC SAYS WILTON S SOGG A BUSINESS LAWYER IN CLEVELAND YOU HAVE TO GIVE INFORMATION TO THE PUBLIC YOU HAVE TO CLEAN UP YOUR ACT HOWEVER QUALITIES NEEDED TO MAKE THE SWITCH SUCCESSFULLY SUCH AS PATIENCE TO ANSWER SHAREHOLDER QUESTIONS ARE ANTITHETICAL TO THE TEMPERAMENT OF MANY ENTREPRENEURS MR SOGG SAYS AT FINGERMATRIX THE DISSIDENTS CHARGE THAT MR SCHILLER THOUGH AN INDEFATIGABLE WORKER PAID THEM LITTLE HEED EXCEPT WHEN HE TRIED TO RAISE MONEY SAYS MR MOLESWORTH IN GREEN VALLEY ARIZ THE CONCEPT THAT HE'S WORKING FOR PUBLIC SHAREHOLDERS HAS NEVER PENETRATED MICHAEL'S MIND AT ALL MR SCHILLER TURNED DOWN REPEATED REQUESTS FOR AN INTERVIEW UNTIL RECENTLY GLAMOROUS TECHNOLOGY WAS ABOUT ALL THAT ANYBODY EVER NOTICED AT FINGERMATRIX MR SCHILLER AN ELECTRICAL ENGINEER WITH EXPERIENCE IN MACHINE READING OF MICROFILM GOT HIS START BY ACQUIRING AND IMPROVING ON TECHNOLOGY DEVELOPED BY ANOTHER COMPANY FINGERMATRIX HAS BEEN DEVELOPING MACHINES THAT CAN SCAN A FINGERTIP AND VERIFY THE PERSON'S IDENTITY FROM A COMPUTER FILE OF FINGERPRINTS THE MACHINES ARE AIMED AT LAWENFORCEMENT AGENCIES MOTORVEHICLE BUREAUS WELFARE DEPARTMENTS AND PASSPORT OFFICES AS WELL AS SECURITYCONSCIOUS BUSINESS CUSTOMERS BUT SALES HAVE PROVED ELUSIVE BY THE TIME THAT GOVERNMENT INTEREST FINALLY PERKED UP IN THE LAST YEAR OR SO FINGERMATRIX FACED ROUGH COMPETITION FOR THE YEAR ENDED MAY 31 1992 FINGERMATRIX REPORTED A NET LOSS OF 33 MILLION ON REVENUE OF ONLY 258405 LOSSES HAVE CONTINUED IN THE CURRENT FISCAL YEAR BECAUSE OF THE COMPANY'S FINANCIAL DETERIORATION ITS SHARES WERE DELISTED IN JANUARY FROM THE ELECTRONIC SMALLCAP STOCK MARKET RUN BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THEY NOW TRADE ON AN ELECTRONIC BULLETIN BOARD MEANTIME ITS ONCETAME SHAREHOLDERS HAVE GROWN RESTIVE WHEN THEY ASKED MR SCHILLER TO STEP DOWN THE DISSIDENTS CLAIMED TO REPRESENT APPROXIMATELY 65 MILLION SHARES ABOUT 40 OF THE SHARES THEN OUTSTANDING BUT ON THE VERY NEXT DAY MR SCHILLER SUDDENLY ACQUIRED 123 MILLION NEWLY ISSUED SHARES ACCORDING TO A PRELIMINARY PROXY STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THE DISSIDENTS CLAIM THAT ASSURED HIM CONTROL OF THE COMPANY UNLESS THE COURT INTERVENES FURTHERMORE MR SCHILLER PAID TOO LITTLE FOR THE SHARES HIS CRITICS SAY IN THE SUIT THE COMPANY'S PROXY MATERIAL SAYS HE PAID 100000 AND FORGAVE A 145000 DEBT FOR A PRICE EQUIVALENT OF TWO CENTS A SHARE BUT THE MARKET PRICE WAS ABOUT 38 CENTS A SHARE ACCORDING TO THE SUIT FINGERMATRIX'S PRELIMINARY PROXY MATERIAL SUGGESTS THAT THE COMPANY SOLD THE SHARES BECAUSE IT NEEDED MONEY THE COMPANY DEFENDS THE PRICE SUGGESTING THAT THE QUOTED MARKET PRICE WAS OUT OF WHACK AND NOTES THAT IT HAS THE RIGHT TO BUY BACK 73 MILLION OF THE SHARES FOR TWO CENTS A SHARE NOW ON THE OFFENSIVE DISSIDENTS BLAST AWAY AT LONGSTANDING PRACTICES THEY PREVIOUSLY TOLERATED THEY SAY MR SCHILLER USED HIS EXECUTIVE POSITION TO ENRICH OTHER MEMBERS OF HIS FAMILY FINGERMATRIX LEASES FACILITIES FROM MR SCHILLER HIS SISTER AND HIS SISTERINLAW ON TERMS UNFAVORABLE TO THE COMPANY THE SUIT CHARGES FINGERMATRIX CALLS THE TERMS FAIR IN THEIR SUIT THE DISSIDENTS SAY THEIR PURPOSE IS TO END SCHILLER'S SELFDEALING AND GIVE CONTROL OF FINGERMATRIX TO ITS RIGHTFUL OWNERS THE SHAREHOLDERS THE COMPANY HASN'T YET ANSWERED THE CHARGES IN COURT 9305270117 930527 BANISTER UNIT CONTRACT SHARE SCARBOROUGH ONTARIO BANISTER INC SAID ITS CIVIL CONSTRUCTION SUBSIDIARY FOUNDATION CO OF CANADA LTD RECEIVED CONTRACTS IN A JOINT BID WITH CONTINENTAL CONSTRUCTION LTD OF NEW DELHI INDIA FOR CONSTRUCTION ON THE NATHPA JHAKRI HYDRO ELECTRIC PROJECT IN NORTHERN INDIA BANISTER SAID ITS 45 SHARE OF THE CONTRACTS IS WORTH ABOUT 200 MILLION CANADIAN DOLLARS US1588 MILLION IT SAID THE FOREIGN CURRENCY PORTION OF THE CONTRACT IS FINANCED BY THE WORLD BANK BANISTER A CONSTRUCTION CONCERN SAID WORK ON THE PROJECT IS SCHEDULED TO BEGIN IN JULY WITH COMPLETION SCHEDULED FOR 1999 9305270116 930527 MARKETING & MEDIA BOY AUTHOR'S EXISTENCE IS BACKED BY AP REPORTER NEW YORK THE SUBJECT OF A BOOK ABOUT A 15YEAROLD BOY DYING OF AIDS INDEED EXISTS THE ASSOCIATED PRESS REPORTED AFTER A NEWSWEEK MAGAZINE ARTICLE SUGGESTED HE MIGHT BE FICTIONAL THE AP SAID ITS REPORTER WHO PROFILED THE BOY ANTHONY GODBY JOHNSON BASED ON PHONE INTERVIEWS SAW HIM AND SPOKE TO HIM TUESDAY NIGHT THE BOOK A ROCK AND A HARD PLACE TELLS OF THE BOY'S ABUSE BY HIS PARENTS AND THEIR FRIENDS BEFORE HE WAS ADOPTED BY SOCIAL WORKERS THE NEWSWEEK ARTICLE SUGGESTED THAT THE BOOK MIGHT HAVE BEEN WRITTEN BY WRITER PAUL MONETTE HE AND THE BOOK'S PUBLISHER CROWN PUBLISHERS DENIED THAT THE BOOK WAS A HOAX NEWSWEEK YESTERDAY DEFENDED ITS STORY BUT PROMISED TO ACKNOWLEDGE ANY MISTAKES IT MIGHT HAVE MADE CERTAINLY WE'RE GLAD TO SEE NEW EVIDENCE EMERGING TO SATISFY SOME OF OUR QUESTIONS SAID SARAH CRICHTON ASSISTANT MANAGING EDITOR TONY SAID THE NEWSWEEK STORY HAD MADE HIM EVEN MORE FRIGHTENED AND DISTRUSTFUL THE AP REPORTED I DIDN'T SELL THE RIGHTS TO MY LIFE BECAUSE I PUT MY THOUGHTS ON PAPER HE SAID 9305270115 930527 WHO'S NEWS RTC'S MONROE RESIGNS FROM OVERSIGHT BOARD WASHINGTON PETER MONROE IS RESIGNING AS STAFF CHIEF OF THE OVERSIGHT BOARD FOR THE RESOLUTION TRUST CORP THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY HE PLANS TO LEAVE HIS JOB JUNE 11 AS PRESIDENT OF THE THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD THE HIGHLEVEL GROUP THAT OVERSEES THE RTC AND APPROVES ITS FUNDING REQUESTS AND OPERATING PLANS THE BOARD IS HEADED BY THE TREASURY SECRETARY AND ITS MEMBERS INCLUDE THE FEDERAL RESERVE BOARD CHAIRMAN AND SEVERAL OTHER FINANCIAL REGULATORYAGENCY CHIEFS HIS SUCCESSOR HASN'T BEEN PICKED MR MONROE 49 EXPECTS TO RETURN TO HIS REALESTATE CAREER IN FLORIDA HE WAS NAMED PRESIDENT OF THE RTC OVERSIGHT BOARD IN JUNE 1990 AFTER WORKING FOR A YEAR AT THE HOUSING AND URBAN DEVELOPMENT DEPARTMENT 9305270114 930527 BUSINESS BRIEF SAFECARD SERVICES DIRECTOR ARE SUED BY COFOUNDER AND FORMER CHAIRMAN CHEYENNE WYO THE COFOUNDER AND FORMER CHAIRMAN OF SAFECARD SERVICES INC FILED SUIT AGAINST THE CREDIT CARD PROTECTION COMPANY AND ONE OF ITS DIRECTORS IN AN ILLINOIS STATE COURT SEEKING DAMAGES OF MORE THAN 100 MILLION FOR AN ALLEGED BREACH OF CONTRACT SEPARATELY THE COMPANY WHICH NOTIFIES CREDIT CARD ISSUERS OF LOST OR STOLEN CARDS SAID IT FILED CLAIMS AND COUNTERCLAIMS AGAINST PETER HALMOS IN FEDERAL DISTRICT COURT IN WYOMING AND A FLORIDA CIRCUIT COURT SEEKING TO RECOUP TENS OF MILLIONS OF DOLLARS IN INSIDER TRADING PROFITS THE COMPANY WHICH RECENTLY MOVED TO CHEYENNE WYO FROM FORT LAUDERDALE FLA SAID IN A NEWS RELEASE THAT IT ALSO ACCUSED MR HALMOS OF BREACH OF FIDUCIARY DUTY AND MISUSE OF CORPORATE ASSETS AMONG OTHER THINGS IN MR HALMOS'S SUIT THE FORMER SAFECARD EXECUTIVE CHARGED THAT THE COMPANY RENEGED ON PAYMENT AND STOCK AGREEMENTS AND OTHER OBLIGATIONS THE SUIT ALSO CONTENDS THAT SAFECARD DIRECTOR WILLIAM T BACON LIBELED MR HALMOS IN COMMENTS TO THIS NEWSPAPER THE FLURRY OF LAWSUITS CONTINUES A MONTHSLONG SPAT BETWEEN MR HALMOS AND THE COMPANY HE COFOUNDED IN 1969 WITH HIS BROTHER STEVEN WHO RESIGNED IN DECEMBER BUT CONTINUES TO WORK AS A CONSULTANT TO THE COMPANY PETER HALMOS CONTENDS HIS TROUBLES WITH SAFECARD STEM FROM A 1991 SECURITY BREACH IN WHICH FOUR MILLION CREDIT CARD NUMBERS WERE STOLEN FROM THE COMPANY ACCORDING TO THE LAWSUIT MR HALMOS SAID THE SECURITY BREACH HIGHLIGHTED A MANAGEMENT CONTROL PROBLEM AT THE COMPANY AND SUGGESTED SAFECARD BE SOLD A CONTENTION HE SAID ALIENATED THE BOARD IN A NEWS RELEASE SAFECARD PRESIDENT WM STALCUP JR SAID THE MATTER IS NOW IN THE HANDS OF THE COURTS AND THE DISPUTE WON'T AFFECT THE COMPANY'S ABILITY TO SERVE ITS SUBSCRIBERS 9305270113 930503 BOARD OF CONTRIBUTORS HOW TO THINK ABOUT BOSNIA BY ARTHUR SCHLESINGER JR THE THREAT OF MILITARY INTERVENTION HAS PERSUADED THE BOSNIAN SERBS TO SAY THEY WILL GO ALONG WITH THE UNITED NATIONS PEACE PLAN AT THIS POINT PRESIDENT CLINTON'S POLICY MUST BE ACCOUNTED A CONSIDERABLE SUCCESS BUT EVERY PREVIOUS AGREEMENT AMONG THE WARRING GROUPS IN YUGOSLAVIA HAS BROKEN DOWN THIS ONE MAY BREAK DOWN TOO WHAT THEN SECRETARY OF STATE CHRISTOPHER IS NOW ON A MISSION TO PERSUADE OUR EUROPEAN FRIENDS THAT IF THE AGREEMENT DOES BREAK DOWN THE NEXT STEP SHOULD BE LIMITED MILITARY INTERVENTIONAIR STRIKES ARMS TO THE BOSNIAN MUSLIMS THE ADMINISTRATION WILL ALSO HAVE TO PERSUADE A MAJORITY OF AMERICANS ACCORDING TO THE POLLS IN SHORT THE BOSNIAN DEBATE IS FAR FROM OVER THE DEBATE THAT HAS ALREADY PRODUCED SUCH STRANGE REVERSALS AND ODD ALLIANCES TURNING ANTHONY LEWIS INTO A HAWK ON THE SIDE OF JEANE KIRKPATRICK AND ABE ROSENTHAL INTO A DOVE ON THE SIDE OF PAT BUCHANAN ON THE ONE HAND IT SEEMS UNBEARABLE TO PASS BY ON THE OTHER SIDE WHILE SERBS KILL RAPE AND TORTURE HARMLESS PEOPLE NOR IS THIS JUST A HUMANITARIAN CONCERN BOSNIA ALSO PLACES THE GRAND VISION OF A NEW WORLD ORDER ON TEST AND AT RISK IF WE DO NOT STOP AGGRESSION THERE WILL NOT THE DOMINO EFFECT SPREAD THE INFECTION AND THEN NO COUNTRY WILL BE SAFE IF THE AGREEMENT COLLAPSES DOES NOT THE US AS THE WORLD'S ONLY MILITARY SUPERPOWER BEAR A SPECIAL AND PRIMARY RESPONSIBILITY TO STOP THE SLAUGHTER OF THE INNOCENTS PUNISH THE ETHNIC CLEANSERS MURDERERS TORTURERS AND RAPISTS AND VINDICATE THE ESSENTIAL GOAL OF COLLECTIVE SECURITY WHAT HAS HAPPENED TO AMERICAN IDEALISM AMERICAN COURAGE AMERICAN DECENCY ON THE OTHER HAND WHAT PRACTICALLY CAN WE DO IF THE AGREEMENT COLLAPSES PRESIDENT CLINTON HAS WISELY RULED OUT UNILATERAL US INTERVENTION IF WASHINGTON EXERTS MAJOR PRESSURE IT CAN PROBABLY GET BRITAIN AND POSSIBLY FRANCE TO JOIN IN AIR STRIKES AND EVEN PERHAPS IN PROVIDING ARMS TO THE MUSLIMS SUCH ACTIONS WOULD TEMPORARILY EASE AMERICAN CONSCIENCES BY GIVING THE IMPRESSION THAT THE US IS DOING SOMETHING BUT THE OBJECT OF FOREIGN POLICY IS NOT TO GRATIFY OURSELVES IT IS TO BRING ABOUT REAL CHANGES IN A REAL WORLD AND SUPPOSE LIMITED MILITARY INTERVENTION FAILS WHAT IS THE NEXT STEP IT IS INSTRUCTIVE TO CONSIDER WHY THE EUROPEAN DEMOCRACIES ARE SO RELUCTANT TO ENTER THE YUGOSLAV CIVIL WAR IT MAY OF COURSE SIMPLY BE THE HOPE THAT THE US WILL SOLVE EUROPE'S PROBLEMS FOR THEM BUT IT MAY BE MORE THAN THAT IT MAY BE THAT THE EUROPEANS HAVE A DIFFERENT ASSESSMENT AS TO WHAT IS AT STAKE IN BOSNIA AS MANY EUROPEANS SEE IT THE END OF THE COLD WAR ENCOURAGES THE BALKANS TO BE THE BALKANS AGAIN THE BALKAN PEOPLES THEY SAY ARE FIGHTING AMONG THEMSELVES AS THEY HAVE DONE THROUGHOUT THEIR HISTORY AND DESPITE THE ATROCITIES THERE IS NOT MUCH OUTSIDERS CAN DO ABOUT YUGOSLAVIA UNTIL THE YUGOSLAVS GET TIRED OF KILLING EACH OTHER FEW EUROPEANS SUBSCRIBE TO THE APOCALYPTIC INTERPRETATION OF THE YUGOSLAV CIVIL WAR THE ARGUMENTS USED TODAY FOR INTERVENTION IN BOSNIA HAVE DISQUIETING ECHOES OF THE ARGUMENTS USED 30 YEARS AGO FOR INTERVENTION IN VIETNAM COLLECTIVE SECURITY DOMINO THEORY PUNISHING AGGRESSION DEFENDING WORLD ORDER IN 1967 PRESIDENT JOHNSON SENT CLARK CLIFFORD ON A MISSION TO PERSUADE THE SEATO ALLIES TO INCREASE THEIR TOKEN MILITARY CONTRIBUTIONS TO VIETNAM TRAVELING FROM COUNTRY TO COUNTRY MR CLIFFORD DISCOVERED THAT THE SEATO ALLIES THOUGH CLOSER TO THE SCENE AND MORE VULNERABLE TO THE CONSEQUENCES OF A COMMUNIST VICTORY DID NOT TAKE THE WAR AS TRAGICALLY AS WASHINGTON DID AND WERE UNWILLING TO PUT MORE OF THEIR SOLDIERS IN THE FIGHTING MR CLIFFORD RETURNED FROM HIS MISSION PERSUADED THAT THERE WAS LESS AT STAKE IN VIETNAM THAN WE HAD SUPPOSED IN RETROSPECT THE ASSESSMENT OF THE SEATO ALLIES TURNED OUT TO BE CORRECT NORTH VIETNAM WON THE WAR BUT THERE WAS NO DOMINO EFFECT OR RATHER THE DOMINOES FELL NOT AGAINST US BUT AGAINST EACH OTHER COMMUNIST VIETNAM ATTACKING COMMUNIST CAMBODIA AND COMMUNIST CHINA ATTACKING COMMUNIST VIETNAM AND NO ENCOURAGEMENT OF AGGRESSION ELSEWHERE IT MAY EQUALLY BE THAT THE ASSESSMENT OF THE NATO ALLIES OF THE STAKES IN BOSNIA IS MORE CORRECT THAN THAT OF THE AMERICAN INTERVENTIONISTS AFTER ALL EUROPEANS ARE MORE FAMILIAR WITH THE TERRITORY AND WILL BE MORE ENDANGERED BY THE RESULT YET THEY DO NOT SEE THEIR VITAL INTERESTS AS THREATENED NOR DO THEY FIND COMPELLING REASONS TO SEND YOUNG MEN TO KILL AND DIE IN BOSNIA SLOBODAN MILOSEVIC IS A WICKED SCOUNDREL BUT SERBIA IS NOT NAZI GERMANY NOR WILL IT MOVE ON FROM BOSNIA TO ATTACK ITALY AND FRANCE AND BRITAIN FEW EUROPEANS BELIEVE THAT THE YUGOSLAV CIVIL WAR IS GOING TO SET OFF A WORLD WAR AND FEW EUROPEANS BELIEVE THAT IF THE AGREEMENT BREAKS DOWN LIMITED INTERVENTION WILL BRING IT BACK TO LIFE AIR POWER IS EFFECTIVE IN A DESERT WHERE THERE IS NO PLACE TO HIDE YUGOSLAVIA IS NOT A DESERT BOSNIA AND SERBIA ARE MOUNTAINOUS FORESTED AND FILLED WITH PLACES TO HIDE SURGICAL STRIKES AGAINST SERBIAN POSITIONS ARE AN ILLUSION AS GEORGE BALL ONCE REMARKED IF SURGEONS USED THE SAME CRITERIA THAT THE AIR FORCE DOES NONE OF US WOULD EVER DARE HAVE AN OPATION WE NOW KNOW THAT EVEN IN THE GULF WAR THE SMART BOMBS WERE NOT IN PRACTICE SO SMART AS THEY WERE REPRESENTED AS BEING AT THE TIME IF THE AGREEMENT BREAKS DOWN AND LIMITED INTERVENTION FAILS TO NAIL THAT OLD COONSKIN TO THE WALL WILL THE WORLD'S ONLY MILITARY SUPERPOWER CRAVENLY RETREAT OR HAVING COMMITTED OURSELVES SO FAR ARE WE NOT OBLIGATED TO GO FARTHER AND SEND IN GROUND FORCES NO DOUBT IN TIME WE COULD WIN AN ALLOUT WAR ON THE GROUND AGAINST SERBIA BUT IT WOULD PROBABLY REQUIRE AT LEAST A QUARTER OF A MILLION TROOPS AND IT WOULD BE A MESSY MURDEROUS AFFAIR THAT NO GENERAL STAFF IN THE WEST IS EAGER TO UNDERTAKE AND THAT WOULD NOT BE THE END OF IT A LARGE MILITARY FORCE WOULD HAVE TO REMAIN PROBABLY FOR YEARS TO POLICE A POLITICAL SETTLEMENT AND IF WE EMBROIL OURSELVES IN THE YUGOSLAV CIVIL WAR FOR HUMANITARIAN AND NEWWORLDORDER REASONS HOW CAN WE STOP WITH YUGOSLAVIA WHAT ABOUT ARMENIA/AZERBAIJAN CAMBODIA TIBET AND OTHER COUNTRIES WHERE THE SAME PRINCIPLES ARE INVOLVED DO WE IGNORE THESE SUFFERING PEOPLES BECAUSE THEY ARE NOT EUROPEAN WHERE DOES OUR CRUSADE FOR WORLD REDEMPTION END ONE OTHER CONSIDERATION MUST WEIGH HEAVILY ON PRESIDENT CLINTON'S MIND IF HE LEADS THE US STEP BY STEP INTO A BALKAN WAR HE MIGHT AS WELL KISS HIS PROGRAM OF NATIONAL RENOVATION AND REFORM GOODBYE BOSNIA WILL DESTROY HIS DOMESTIC HOPES AS SURELY AS VIETNAM DESTROYED LYNDON JOHNSON'S GREAT SOCIETY IF THE AGREEMENT BREAKS DOWN UNLESS WE ARE PREPARED TO GO THE DISTANCE AND SEND YOUNG AMERICANS TO KILL AND DIE IN BOSNIA WE MAY HAVE TO SETTLE FOR LONGERRUN MEASURES OF ECONOMIC AND DIPLOMATIC OSTRACISM THE BARBAROUS REGIME IN BELGRADE CANNOT HOPE TO ESCAPE RETRIBUTION FOR THE GENOCIDAL HAVOC IT HAS WROUGHT SHOULD THE FIGHTING RESUME LET US EXPEL SERBIA FROM THE UN COMPILE THE DOCUMENTATION OF WAR CRIMES AND ATROCITIES AND MAKE IT CLEAR THAT UNTIL SERBIA HAS PURGED ITSELF OF ITS CRIMINAL LEADERSHIP IT CANNOT RETURN TO THE FELLOWSHIP OF NATIONS OUR PLANET WILL BE FILLED WITH BARBARISM FOR A LONG TIME TO COME VIOLENCE IS EPIDEMIC IN THIS POSTCOLD WAR WORLD OF RAGING NATIONAL RELIGIOUS ETHNIC AND RACIAL CONFLICT WHEN VITAL US INTERESTS ARE DIRECTLY THREATENED OF COURSE WE MUST PREPARE TO FIGHT BUT IN MANY CASES WE MUST ACCEPT THE SAD NECESSITY OF LIVING WITH TRAGEDIES THAT ARE BEYOND OUR POWER TO CONTROL AND OUR WISDOM TO CURE WHAT PRESIDENT KENNEDY SAID IN 1961 APPLIES MORE THAN EVER TODAY WE MUST FACE THE FACT THAT THE US IS NEITHER OMNIPOTENT NOR OMNISCIENT THAT WE ARE ONLY 6 OF THE WORLD'S POPULATION THAT WE CANNOT IMPOSE OUR WILL UPON THE OTHER 94 THAT WE CANNOT RIGHT EVERY WRONG OR REVERSE EACH ADVERSITY AND THAT THEREFORE THERE CANNOT BE AN AMERICAN SOLUTION TO EVERY WORLD PROBLEM MR SCHLESINGER IS ALBERT SCHWEITZER PROFESSOR OF THE HUMANITIES AT THE CITY UNIVERSITY OF NEW YORK AND A WINNER OF PULITZER PRIZES IN BIOGRAPHY AND HISTORY SEE RELATED LETTER LETTERS TO THE EDITOR WE CANNOT IGNORE TREACHERY WSJ MAY 27 1993 9305030086 YY93 MM05 9305270112 930527 TRADING OPENS IN SECURITIES TIED TO S&P MIDCAP INDEX NEW YORK THE AMERICAN STOCK EXCHANGE BEGAN TRADING NEW SECURITIES TIED TO STANDARD & POOR'S MIDCAP 400 INDEX PAINEWEBBER GROUP INC ISSUED 28 MILLION UNITS OF THE SECURITIES UNDERWRITTEN BY ITS PAINEWEBBER INC SUBSIDIARY AT 10 EACH THEY WERE QUOTED AT 10125 IN LATE TRADING YESTERDAY THE STOCK INDEX RETURN SECURITIES TRADED UNDER THE SYMBOL SIS MATURE ON JUNE 2 2000 IF THE S&P MIDCAP 400 INDEX RISES IN VALUE AT MATURITY INVESTORS WILL RECEIVE 115 OF THE APPRECIATION PLUS THE INITIAL PRINCIPAL OF 10 IF THE INDEX INITIALLY VALUED AT 16610 DECLINES OR REMAINS UNCHANGED AT MATURITY INVESTORS WILL RECEIVE THE INITIAL 10 UNIT VALUE THE SECURITIES PAY NO INTEREST THE S&P MIDCAP INDEX TRACKS 400 STOCKS WITH A TOTAL MARKET VALUE OF ABOUT 475 BILLION PAINEWEBBER WILL USE SOME OF THE PROCEEDS OF THE OFFERING TO PURCHASE OR MAINTAIN POSITIONS IN FINANCIAL INSTRUMENTS RELATED TO THE S&P MIDCAP 400 INDEX IN ORDER TO HEDGE ITS OBLIGATIONS TO REDEEM THE NEW SECURITIES PAINEWEBBER'S FILING WITH THE SECURITIES AND EXCHANGE COMMISSION NOTED THAT THE NEW SECURITIES COULD TRADE AT A SUBSTANTIAL DISCOUNT FROM THE INITIAL OFFERING PRICE IF THE INDEX IS AT OR BELOW THE INITIAL VALUE AND IF INTEREST RATES RISE 9305270111 930527 S&P CUTS ITS RATINGS ON JAMES RIVER DEBT CITING WEAK EARNINGS NEW YORK STANDARD & POOR'S CORP LOWERED SOME OF THE DEBT RATINGS OF JAMES RIVER CORP AND ITS SUBSIDIARIES CITING THE PAPERPRODUCT COMPANY'S RELATIVELY WEAK POSITION IN THE INDUSTRY ABOUT 21 BILLION OF DEBT IS AFFECTED S&P LOWERED JAMES RIVER'S SENIOR DEBT TO TRIPLEB FROM TRIPLEBPLUS AND SHELFREGISTRATION SENIOR DEBT TO TRIPLEB ON A PRELIMINARY BASIS THE PREFERRED STOCK WAS LOWERED TO TRIPLEBMINUS FROM TRIPLEB ALSO LOWERED WERE SENIOR DEBT RATINGS ON THE BROWN CO AND CROWN ZELLERBACH CORP UNITS THE COMPANY'S COMMERCIAL PAPER RATING OF A2 WAS AFFIRMED THE RATINGS HAD BEEN UNDER REVIEW SINCE JANUARY AND S&P SAID THE RATING OUTLOOK FOR THE COMPANY IS NEGATIVE THE DOWNGRADES REFLECT CONTINUED WEAK EARNINGS AND CASH FLOW DESPITE PARTICIPATION IN THE MOSTLY STABLE TISSUE AND FOOD PACKAGING INDUSTRIES S&P SAID ALTHOUGH EXTERNAL FACTORS MAINLY RECESSIONARY PRESSURES HAVE STRAINED ALL OPERATIONS THE PAST FEW YEARS JAMES RIVER'S RESULTS HAVE DETERIORATED AT A GREATER RATE THAN ITS COMPETITORS' INDICATING A SOMEWHAT BELOWAVERAGE COST POSITION ADDITIONALLY DEBT IS STILL HIGHER THAN EXPECTED JAMES RIVER IS BASED IN RICHMOND VA OFFICIALS COULDN'T BE REACHED TO COMMENT 9305270110 930527 LAW CARLOS CARDOEN TELEDYNE INDICTED OVER ARMS EXPORTS MIAMI A FEDERAL GRAND JURY IN MIAMI INDICTED CHILEAN ARMS MANUFACTURER CARLOS CARDOEN TELEDYNE INDUSTRIES INC AND OTHERS FOR ILLEGALLY EXPORTING MILITARY GOODS FROM THE US DURING THE 1980S THE ALLEGEDLY ILLEGAL EXPORTS INVOLVED ZIRCONIUM A RESTRICTED METAL WHICH WAS SOLD BY A TELEDYNE SUBSIDIARY TO CARDOENCONTROLLED COMPANIES THE CARDOEN COMPANIES USED THE ZIRCONIUM IN CHILE TO MAKE ABOUT 24000 CLUSTER BOMBS WHICH WERE SOLD TO IRAQ THE INDICTMENT SAID THE INDICTMENT CHARGES THE DEFENDANTS WITH CONSPIRACY AND VIOLATIONS OF THE ARMS EXPORT CONTROL ACT AND THE EXPORT ADMINISTRATION ACT AS WELL AS MAKING FALSE STATEMENTS TO GOVERNMENT AGENCIES THE CARDOEN COMPANIES INDUSTRIAS CARDOEN LIMITADA OF SANTIAGO CHILE AND SWISSCO MANAGEMENT GROUP INC OF MIAMI LAKES FLA AS WELL AS TWO MEN WHO WORKED FOR CARDOEN COMPANIES AND TWO MEN EMPLOYED BY TELEDYNE WERE CHARGED ALONG WITH MR CARDOEN AND TELEDYNE WHICH IS BASED IN LOS ANGELES THE INDICTMENT SAYS THE CONSPIRATORS INTENTIONALLY DISGUISED THEIR ACTIVITIES BY MISREPRESENTING THAT THE ZIRCONIUM IN QUESTION WAS FOR NONMILITARY PURPOSES FROM 1982 TO 1989 WHEN THE ALLEGED VIOLATIONS OCCURRED THE US HAD AN EMBARGO ON ARMS SHIPMENTS TO CHILE BECAUSE OF THE DICTATORSHIP OF GEN AUGUSTO PINOCHET AND IT DIDN'T LICENSE USMADE WEAPONS EXPORTS TO IRAQ DURING THE SIXYEAR IRANIRAQ WAR THAT ENDED IN 1988 ROGER ZUCKERMAN MR CARDOEN'S LEAD LAWYER IN THE US SAID THE INDICTMENT IS IN MANY RESPECTS PREPOSTEROUS AND ILLFOUNDED HE SAID THE VERY GOVERNMENT THAT NOW CHARGES DR CARDOEN AS A CRIMINAL FOR SUPPLYING WEAPONRY TO IRAQ KNEW OF APPROVED OF AND EVEN SOLICITED THIS CONDUCT THROUGHOUT THE 1980S WILLIAM JOSEPH LINKLATER OUTSIDE COUNSEL FOR TELEDYNE SAID WE CATEGORICALLY DENY THE CHARGES WHICH HE CALLED UNFAIR AND WITHOUT MERIT THE COMPANY BELIEVES IT HAS A STRONG CASE THAT IT COMPLIED WITH THE LAW AND THAT THE GOVERNMENT AT THE EXECUTIVE AND LICENSING LEVEL KNEW EXACTLY WHAT CARDOEN WAS UP TO MR LINKLATER SAID 9305270108 930527 WHO'S NEWS SIMTEK CORP SIMTEK CORP COLORADO SPRINGS COLO THREE NEW DIRECTORS WERE ELECTED AT THIS MAKER OF SEMICONDUCTOR MEMORIES INCREASING THE BOARD'S SIZE TO FIVE FROM THREE AND REPLACING ONE MEMBER WHO RESIGNED NEW MEMBERS ARE WARREN D BAGATELLE 54 YEARS OLD A MANAGING DIRECTOR OF LOEB PARTNERS CORP OF NEW YORK ROBERT H KEELEY 52 THE EL POMAR PROFESSOR OF FINANCE AT THE UNIVERSITY OF COLORADO AND KLAUS C WIEMER 55 AN INDEPENDENT CONSULTANT STANLEY F ALFELD 48 WHO RESIGNED IS A GENERAL PARTNER OF LANDMARK VENTURES AN INVESTOR IN THE COMPANY 9305270107 930527 WEDNESDAY'S MARKETS INDUSTRIALS SET RECORD BONDS SURGE COMPUTER PROGRAMS PLAY KEY ROLE DOLLAR HITS LOW AGAINST YEN BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE CATAPULTED TO A RECORD IN A LATE BURST OF COMPUTERGUIDED BUYING INSPIRED PARTLY BY SURGING BOND PRICES THE DOLLAR FELL HITTING ANOTHER ALLTIME LOW AGAINST THE YEN THE INDUSTRIAL AVERAGE CLIMBED 2353 POINTS TO 354016 STANDARD & POOR'S 500STOCK INDEX JUMPED 459 TO 45344 AND THE NASDAQ COMPOSITE INDEX SOARED 905 TO 70409 STOCK TRADING WAS LACKLUSTER UNTIL MIDAFTERNOON WHEN A BOND RALLY KNOCKED INTEREST RATES SHARPLY LOWER THE DROP IN INTEREST RATES SET OFF SOME BUYING WHICH IN TURN SET OFF THE COMPUTER BUY PROGRAMS SAID MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO YESTERDAY'S ACTIVITY FIT A PATTERN OF RECENT MONTHS IN WHICH STOCK PRICES GO NOWHERE FOR A WHILE THEN SUDDENLY SHOOT UP OR DOWN THE UPSWINGS ARE ACCENTUATED BECAUSE TRADERS ARE FLUSH WITH CASH WHILE THE SHARP DECLINES HIGHLIGHT THAT PRICES ARE HIGH AND THE MARKET IS JITTERY YOU HAVE A SYSTEM AWASH WITH MONEY LOOKING FOR THINGS TO DO MR METZ SAID IT'S THE KIND OF MARKET WHERE LONGTERM INVESTORS ARE AT A LOSS AND TRADERS DOMINATE THE ARENA THE RALLY IN THE OVERTHECOUNTER MARKET WAS LED BY INTEL WHICH SURGED 6 3/4 OR 65 TO 110 1/2 AFTER MERRILL LYNCH RAISED ITS EARNINGS ESTIMATE FOR THE COMPANY ANALYSTS SAID INTEL ALSO BENEFITED FROM MONEY FLOWING OUT OF NOVELL WHICH SANK 2 3/8 OR 74 TO 29 7/8 AFTER TWO BROKERAGES LOWERED THEIR RATINGS ON THE COMPANY THE REAL ACTION IS IN THE OTC MARKET SAID LARRY RICE CHIEF MARKET STRATEGIST AT JOSEPHTHAL LYON & ROSS IT SHOWS THE STOCK MARKET IS ENTERING INTO A SPECULATIVE PHASE THE BOND MARKET GOT AN EARLY BOOST FROM A DISAPPOINTING REPORT ON DURABLEGOODS ORDERS IN APRIL ORDERS WERE FLAT WITH THE PREVIOUS MONTH BUT ECONOMISTS HAD EXPECTED AN INCREASE OF MORE THAN 1 THE BOND RALLY ACCELERATED IN THE AFTERNOON AFTER A SUCCESSFUL AUCTION OF FIVEYEAR NOTES AND AMID SIGNS THAT CONSERVATIVE DEMOCRATS IN THE HOUSE ARE LEANING TOWARD SUPPORTING PRESIDENT CLINTON'S PLAN TO REDUCE THE BUDGET DEFICIT WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 122 TO 10774 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2742 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1264 ISSUES ROSE AND 654 FELL BOND PRICES SURGED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 1 1/8 POINTS OR MORE THAN 1125 FOR EACH 1000 FACE AMOUNT TO YIELD 692 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16278 MARKS AND 10850 YEN COMPARED WITH 16315 MARKS AND 10935 YEN TUESDAY 9305270106 930527 FINANCING BUSINESS HUDSON BAY CO HUDSON'S BAY CO TORONTO SAID IT EXPECTS TO RAISE 1813 MILLION CANADIAN DOLLARS US144 MILLION FROM THE SALE OF FIVE MILLION NEW SHARES TO A GROUP OF UNDERWRITERS AT C3625 A SHARE THE TORONTO RETAILER SAID THE PROCEEDS WILL BE USED TO FINANCE IN PART THE PREVIOUSLY ANNOUNCED ACQUISITION OF RETAILER WOODWARD'S LTD FOR ABOUT C235 MILLION THE ACQUISITION IS EXPECTED TO CLOSE EARLY NEXT MONTH IN TORONTO STOCK EXCHANGE TRADING YESTERDAY HUDSON'S BAY SHARES CLOSED AT A 52WEEK HIGH OF C3725 UP 625 CANADIAN CENTS 9305270105 930527 HEARD ON THE STREET BATTLE FOR PSI OFFERS INVESTORS A HARD CHOICE BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL THE BIGGEST TAKEOVER BATTLE OF 1993 IS BEING FOUGHT OVER AN OTHERWISE OBSCURE INDIANA UTILITY PSI RESOURCES INC AND IT HAS LEFT SHAREHOLDERS WITH A DIFFICULT CHOICE TO MAKE IPALCO ENTERPRISES INC OF INDIANAPOLIS IS WAGING A PROXY FIGHT TO REPLACE ONETHIRD OF PSI'S BOARD AT THE PSI ANNUAL MEETING SEPT 23 SEEKING SHAREHOLDER SUPPORT FOR IPALCO'S HOSTILE BID FOR PSI OF 15 BILLION OR 2650 A SHARE IN CASH AND STOCK PSI AGREED TO A FRIENDLY MERGER WITH CINCINNATI GAS & ELECTRIC CO WHICH IS OFFERING 0909 OF ITS OWN SHARES FOR EACH PSI SHARE OR 2329 AT YESTERDAY'S MARKET PRICE THE TWO COMPANIES' COMBINED MARKET VALUE IS 34 BILLION ORDINARILY SHAREHOLDERS DECIDE TAKEOVER BATTLES BY TAKING THE HIGHEST BID BUT IN UTILITY TAKEOVERS SUCH AS THIS ONE THEY MUST ALSO TRY TO GUESS HOW LOCAL REGULATORS WILL RULE IPALCO'S HIGHER BID IS SUBJECT TO REGULATORY APPROVAL CINCINNATI GAS'S OFFER ISN'T IF IPALCO WINS THE PROXY FIGHT BUT CAN'T GET ITS ACQUISITION APPROVED PSI HOLDERS COULD BE LEFT WITHOUT EITHER DEAL IT'S ONE OF THOSE CASES WHERE THE HIGHEST BID MIGHT NOT BE A REALISTIC BID BECAUSE IT'S DEPENDENT ON REGULATORY APPROVAL SAYS KEN GREINER PARTNER AT DALTON GREINER HARTMAN MAHER & CO WHICH MANAGES 13 MILLION PSI SHARES PSI OF PLAINFIELD IND IS THE FORMER PUBLIC SERVICE CO OF INDIANA IPALCO USED TO BE INDIANAPOLIS POWER & LIGHT DOUGLAS PREISER UTILITIES ANALYST AT KIDDER PEABODY & CO SAYS THE INVESTORS' DILEMMA IS THAT THE CINCINNATIPSI COMBINATION PRESENTS A BETTER LONGTERM STRATEGY GIVEN THE COMPETITIVE CHANGES FACING THE INDUSTRY BUT IPALCO GIVES YOU A MUCH BETTER PRICE WHAT IS MR PREISER TELLING CLIENTS I'M STILL TRYING TO FIGURE IT OUT MYSELF SOME EXPERTS HAVE PREDICTED THAT INCREASED COMPETITION AND PRESSURE FOR LOWER RATES WOULD GENERATE A WAVE OF MERGERS TO SIMPLIFY THE NATION'S PATCHWORK QUILT OF UTILITIES BUT INVESTMENT BANKER DAVID WITTIG OF SALOMON BROTHERS INC WHICH IS ADVISING PSI SAYS THE WAVE HAS BEEN SLOW TO BUILD BECAUSE REGULATORS HAVE UNTIL RECENTLY TENDED TO LIMIT POTENTIAL RETURNS ON UTILITY ACQUISITIONS AT FIRST GLANCE IPALCO APPEARS TO FIT WELL WITH PSI BECAUSE IT IS LOCATED IN THE CENTER OF PSI'S SERVICE AREA LIKE A HOLE IN A DOUGHNUT CINCINNATI GAS IS EAST OF PSI BUT MANY ANALYSTS SAY PSI AND CINCINNATI GAS HAVE A BETTER MIX OF POWER RESOURCES IPALCO CHAIRMAN JOHN R HODOWAL MADE A MERGER OVERTURE TO PSI CHAIRMAN JAMES E ROGERS JR IN JULY OVER A GAME OF GOLF MR ROGERS INSTEAD SEWED UP A DEAL WITH CINCINNATI GAS THAT WAS ANNOUNCED IN DECEMBER IPALCO ADVISERS NOTE THAT PSI'S WORKING PAPERS FOR THE DEAL MENTION THAT CINCINNATI GAS'S TOP EXECUTIVES ARE OVER 60 YEARS OLD AND NEARING RETIREMENT THAT WOULD GIVE MR ROGERS 45 A PATH TO BECOME CHIEF EXECUTIVE OFFICER OF THE NEW COMPANY CINERGY CORP WHEN CINCINNATI GAS'S CHIEF EXECUTIVE OFFICER JACKSON H RANDOLPH 62 RETIRES DEC 1 1995 IT'S THE HEIGHT OF ARROGANCE TO ME SAYS ROBERT A MCLAUGHLIN INVESTMENT OFFICER OF THE OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM WHICH OWNS 26 MILLION PSI SHARES YOU HAVE A COMPANY CHAIRMAN WHO MAKES A UNILATERAL DECISION AND IF THE HOLDERS VOTE AGAINST IT IT COSTS THEM FINANCIALLY HE PUT HIMSELF ON A PRIVATE JET BUT HE LEFT THE SHAREHOLDERS ON THE GROUND A PSI SPOKESWOMAN RESPONDS THAT THE COMPANY'S BOARD BELIEVES THE CINCINNATI GAS DEAL IS THE ONLY TRANSACTION OFFERING SHAREHOLDERS REAL VALUE MR ROGERS HAS A RECORD OF CREATING SHAREHOLDER VALUE SHE ADDED BUT IPALCO IS ASKING SHAREHOLDERS TO GET ON A PLANE THAT CAN'T TAKE OFF STILL MOST SHAREHOLDERS ARE WAITING TO DECIDE HOW TO VOTE ASSUMING THAT ONE SIDE OR THE OTHER MAY RAISE ITS BID DEPENDING ON HOW THE VOTE LOOKS IF CINCINNATI GAS GAINS APPROVAL FOR HIGHER RATES IN JUNE FOR EXAMPLE IT COULD EFFECTIVELY RAISE THE VALUE OF ITS BID SIMPLY BY RAISING ITS DIVIDEND BECAUSE THAT WOULD BOOST THE PRICE OF ITS STOCK BUT THE HIGHER EITHER SIDE BIDS THE MORE VULNERABLE IT IS TO CHARGES THAT IT WOULD HAVE TO RAISE RATES IPALCO HAS BID 900 MILLION MORE THAN PSI'S BOOK VALUE A PREMIUM THAT COULD RESULT IN CUSTOMERS' PAYING HIGHER ELECTRIC RATES SO IPALCO HAS VOWED TO CUT COSTS BY 16 BILLION DURING THE NEXT 10 YEARS SPLITTING THE SAVINGS BETWEEN SHAREHOLDERS AND CUSTOMERS WHICH IT SAYS WOULD AVERT TAKEOVERRELATED RATE INCREASES BUT IN MEETINGS WITH ANALYSTS AND INVESTORS PSI HAS QUESTIONED WHETHER THOSE SAVINGS CAN REALLY BE ACHIEVED CALLING THE ISSUE A FATAL FLAW THAT DOOMS IPALCO'S BID PSI HAS HIRED FOUR FORMER UTILITY REGULATORS TO ATTEST THAT REGULATORS WON'T APPROVE IPALCO'S BID IPALCO HAS ONE FORMER REGULATOR WHO SAYS THEY COULD PSI IS ALSO RUNNING TV ADS FOR A PETITION OPPOSING IPALCO'S BID TO BE SUBMITTED TO THE SAME REGULATORS THE INDIANA UTILITY REGULATORY COMMISSION FANNED BY PSI INVESTOR SKEPTICISM ABOUT IPALCO'S BID HAS PUSHED THE PRICE OF PSI SHARES DOWN FROM A PEAK OF 24 1/8 ON APRIL 16 TO 22 1/2 A SHARE YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TRADERS SAY THAT PRICE IS ONLY SLIGHTLY HIGHER THAN WHERE PSI WOULD TRADE WITHOUT ANY COMPETING IPALCO BID ANALYSTS ARE SPLIT ON IPALCO'S CHANCES EDWARD TIRELLO A UTILITY ANALYST AT NATWEST SECURITIES INC SAYS THE IPALCOBID STANDS A BETTER CHANCE OF PREVAILING BECAUSE IT'S HIGHER BUT DAN RUDAKAS A UTILITY ANALYST AT KEMPER SECURITIES INC SAYS THE IPALCO OFFER MAY NOT BE APPROVED BECAUSE A RECENT COURT DECISION REDUCES REGULATORS' FLEXIBILITY TO LET SHAREHOLDERS SHARE COST SAVINGS WITH CUSTOMERS WHICHEVER BIDDER EVENTUALLY ACQUIRES PSI IT'S LIKELY TO TAKE A LONG TIME EVEN FRIENDLY UTILITY MERGERS TYPICALLY TAKE A YEAR OR 18 MONTHS TO COMPLETE SAYS MR RUDAKAS I COULD SEE THIS THING DRAGGING ON FOR QUITE A WHILE MICROSOFT CHAIRMAN WILLIAM GATES III CALLS HIMSELF AN OPTIMIST SO DESPITE HIS GENERAL OBSERVATION THAT INTERNATIONAL BUSINESS MACHINES HAS BIG PROBLEMS ESPECIALLY A SICK CASH COW IN ITS MAINFRAME BUSINESS HE SEES SOME HOPE FOR ITS RECOVERY AT LEAST THERE'S LOTS OF OPPORTUNITY FOR COLLABORATION WITH MICROSOFT HE TOLD HIS LUNCHEON HOSTS AT THIS NEWSPAPER YESTERDAY IBM'S STOCK MARKET VALUE HAS DROPPED SO SHARPLY TO NEARLY 30 BILLION FROM 100 BILLION IN ITS BETTER DAYS AND ITS REVENUE REMAINS SO HUGE AT ABOUT 65 BILLION THAT IT WOULDN'T TAKE MUCH TURNAROUND IN PROFITABILITY FOR THE COMPANY TO IMPROVE THE STOCK VALUATION MR GATES SAID HE SEES IBM AS HAVING A BIG ROLE TO PLAY IN INTEGRATING NEW TECHNOLOGIES IBM IS THE COMPANY THAT COULD DO THE MOST TO GET THESE INTO THE MARKETPLACE HE SAID WE CAN BE VERY COMPLEMENTARY TO EACH OTHER HE ALSO SAID HE OFTEN TALKS ABOUT POSSIBLE COLLABORATIONS WITH JOHN MALONE CHIEF EXECUTIVE OFFICER OF TELECOMMUNICATIONS THE BIG CABLE TELEVISION COMPANY LIKE MOST IBM WATCHERS MR GATES DIDN'T PREDICT ANY QUICK RECOVERY FOR BIG BLUE MOST ANALYSTS FEEL THE SECOND QUARTER IS GOING POORLY AND THERE'S EVEN A CHANCE THE DIVIDEND COULD BE CUT FURTHER IT HAS BEEN A VERY TOUGH SECOND QUARTER SAYS JIM CASSELL VICE PRESIDENT OF GARTNER GROUP A STAMFORD CONN CONSULTING GROUP HE CITES DECLINING PRICES AND THE COST OF RESTRUCTURING MR GATES WOULDN'T SAY WHETHER HE HAS BOUGHT ANY IBM STOCK RECENTLY NOR WOULD HE COMMENT ON WHAT HE CALLED HIS OVERLY TOUTED PLEASEDTOMEETYOU MEETING WITH IBM CHAIRMAN LOUIS V GERSTNER YESTERDAY IN NEW YORK ALL MR GATES WOULD SAY IS THAT MR GERSTNER WOULDN'T HAVE TAKEN THE JOB IF HE DIDN'T THINK IBM WAS WORTH MORE THAN IT IS NOW A PROPOSED FRIENDLY MERGER BETWEEN PSI RESOURCES INC AND CINCINNATI GAS & ELECTRIC CO REQUIRES REGULATORY APPROVAL AS DOES A HOSTILE BID FOR PSI BY IPALCO ENTERPRISES INC YESTERDAY'S HEARD ON THE STREET COLUMN INCORRECTLY SAID THE PSICINCINNATI GAS DEAL ISN'T SUBJECT TO SUCH APPROVAL 9305270104 930527 LAW LEGAL BEAT MARSHALL'S FILES OFFER BUSINESSES HINT ON JUSTICES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PRIVATE FILES OF THE LATE JUSTICE THURGOOD MARSHALL PROVIDE A RARE BEHINDTHESCENES PEEK AT WHY THE SUPREME COURT SO OFTEN FRUSTRATES BUSINESS WITH AMBIGUOUS RULINGS THE PAPERS UNEXPECTEDLY RELEASED BY THE LIBRARY OF CONGRESS JUST FOUR MONTHS AFTER JUSTICE MARSHALL'S DEATH SHED ADDITIONAL LIGHT ON HUNDREDS OF CASES RELATED TO BUSINESS THEY PORTRAY A GROUP OF JUSTICES WHO PAY SCRUPULOUS ATTENTION TO DETAIL IN SOME INSTANCES BUT APPEAR ON OTHER OCCASIONS TO BE UNINTERESTED IN HAMMERING OUT A CONSENSUS TO CLARIFY CONFUSED AREAS OF THE LAW ONE RECURRING THEME THAT EMERGES IS THE FREQUENT FAILURE OF THE JUSTICES IN THEIR PRIVATE CONFERENCES TO AGREE ON RATIONALES FOR THEIR DECISIONS AS INTERNAL MEMOS AND DRAFT OPINIONS BEGIN TO CIRCULATE ANXIETY SURFACES OVER HOW FAR A DECISION SHOULD REACH BUT RATHER THAN WRESTLE OVER BASIC PRINCIPLES THE JUSTICES GO THEIR OWN WAY OR SETTLE FOR HESITANT RULINGS THAT LEAVE LARGER QUESTIONS UNANSWERED A 1991 DECISION ON THE CONSTITUTIONALITY OF A FLORIDA PROPERTY TAX PROVIDES A VIVID EXAMPLE AT ISSUE WAS WHETHER A FLORIDA TAX ON INTANGIBLE PROPERTY SUCH AS ACCOUNTS RECEIVABLE AND SHARES OF STOCK INTERFERED WITH INTERSTATE COMMERCE ACCORDING TO A MEMO BY JUSTICE HARRY BLACKMUN DATED DEC 7 1990 THE SHAKY INITIAL VOTE WAS 62 TO UPHOLD THE TAX WITH JUSTICE SANDRA DAY O'CONNOR NOT PARTICIPATING BECAUSE OF A CONFLICT OF INTEREST BUT THE MAJORITY WAS ACTUALLY MOVING IN SEVERAL DIRECTIONS JUSTICE JOHN STEVENS THOUGHT THE TAX WAS UNLAWFUL BUT WANTED TO AFFIRM BECAUSE THE PLAINTIFF A UNIT OF FORD MOTOR CO HADN'T SHOWN HOW IT HAD BEEN HARMED JUSTICE ANTONIN SCALIA DID NOT UNDERSTAND' JOHN'S EXPLANATION NOTED JUSTICE BLACKMUN BUT WOULD AFFIRM FOR OTHER REASONS JUSTICE DAVID SOUTER LEANED TOWARD AFFIRMANCE BUT WASN'T SURE THE CHIEF WILLIAM REHNQUIST INITIALLY PASSED BUT AFTER THE DISCUSSION LEANED TOWARD AFFIRMANCE BYRON WHITE STATED THAT HE 'NEVER DID UNDERSTAND' THE LEGAL TEST APPLIED IN SUCH CASES AND WAS INCLINED 'SOME WAY OR ANOTHER' TO AFFIRM ASSIGNED BY CHIEF JUSTICE REHNQUIST TO WRITE THE MAJORITY OPINION JUSTICE BLACKMUN ADDED TO THE CONFUSION BY FLIPPING HIS VOTE AND PROPOSING THAT THE TAX BE INVALIDATED TO DO OTHERWISE WOULD REQUIRE OVERTURNING HIGH COURT PRECEDENT HE SAID SUDDENLY JUSTICE BLACKMUN BECAME THE LEAD DISSENTER JOINED BY JUSTICES MARSHALL AND ANTHONY KENNEDY JUSTICE STEVENS WROTE AN OPINION FOR WHAT APPEARED TO BE A FIVEMEMBER MAJORITY BUT ON MAY 9 1991 JUSTICE SOUTER SENT THIS AMBIVALENT MISSIVE TO JUSTICES BLACKMUN AND STEVENS BECAUSE JOHN'S OPINION COMES OUT TO WHERE I HOPED TO BE WHEN WE VOTED ON THIS I FEEL A LITTLE BIT OF A ROTTER IN JOINING HARRY'S DISSENT BUT SO I BELIEVE I MUST DO DEADLOCKED 44 THE HIGH COURT 10 DAYS LATER UPHELD THE TAX WITHOUT ISSUING AN OPINION IN SOME CASES A JUSTICE WILL TRY TO PROVIDE THE BUSINESS WORLD WITH SPECIFIC GUIDANCE ON A PRESSING LEGAL ISSUE ONLY TO BE CAJOLED OUT OF IT BY HIS COLLEAGUES THE MARSHALL PAPERS ILLUMINATE HOW THIS OCCURRED IN THE MONTHS LEADING UP TO A MARCH 1991 DECISION IN WHICH THE COURT DECLINED TO SET SPECIFIC CONSTITUTIONAL GUIDELINES FOR PUNITIVE DAMAGES UNLIKE COMPENSATORY DAMAGES WHICH REIMBURSE A PLAINTIFF'S LOSSES PUNITIVE DAMAGES ARE MEANT TO PUNISH OR DETER HARMFUL CONDUCT BUSINESS INTERESTS CLAIM PUNITIVE DAMAGES HAVE ESCALATED OUT OF CONTROL CONSUMER ADVOCATES COUNTER THAT THEY APPROPRIATELY CHECK WRONGDOING THE SUPREME COURT STEPPED INTO THE DEBATE BY AGREEING TO EXAMINE AN 840000 PUNITIVE AWARD AGAINST PACIFIC MUTUAL INSURANCE CO A CLEAR MAJORITY OF THE JUSTICES THOUGHT THAT THE AWARD PASSED MUSTER IN NOVEMBER 1990 JUSTICE BLACKMUN TOOK A CRACK AT AN OPINION THAT INCLUDED A NUMBERED LIST OF 10 PROCEDURAL AND SUBSTANTIVE CONCERNS THAT LOWER COURTS SHOULD ADDRESS AMONG THE CONCERNS WERE THAT PUNITIVE DAMAGES SHOULD BE PROPORTIONAL TO THE OFFENSE THAT THEY SHOULD REFLECT WHETHER THE DEFENDANT WAS AWARE OF ITS WRONGDOING JUSTICE STEVENS WASN'T SATISFIED WITH THE BLACKMUN EFFORT BUT COUCHED HIS COMPLAINT IN CONCILIATORY TONES DEAR HARRY HE WROTE THIS WAS A CHALLENGING ASSIGNMENT AND I COMPLIMENT YOU FOR THE WAY YOU HAVE HANDLED IT BUT HE WENT ON TO URGE HIS COLLEAGUE TO DROP THE 10 CONSTITUTIONALLY MANDATED GUIDELINES AMONG HIS REASONS WAS A DESIRE TO ENCOURAGE STATE LEGISLATURES AND COURTS TO FASHION SUCH RULES FOR THEMSELVES CHIEF JUSTICE REHNQUIST HAD SIMILAR CONCERNS I WILL SWALLOW MY RESERVATIONS HE WROTE TO JUSTICE BLACKMUN ONLY IF A SERIES OF CHANGES WERE MADE TO REMOVE THE IMPRESSION THAT THIS OPINION LAYS DOWN STANDARDS WHICH WOULD ENABLE ANYONE TO MEASURE' THE CONSTITUTIONALITY OF PUNITIVE DAMAGE AWARDS WITH INDICATIONS THAT JUSTICES SCALIA AND KENNEDY WERE ALSO UNEASY ABOUT THE OPINION JUSTICE BLACKMUN RELUCTANTLY MADE ALL OF THE REQUESTED CHANGES AND PRESERVED HIS MAJORITY THE RESULTING OPINION IS CERTAINLY FLEXIBLE BUT DIDN'T PROVIDE LOWER COURTS AND LITIGANTS WITH THE GUIDANCE MANY WERE SEEKING IN FACT THE PACIFIC MUTUAL RULING HAS BEEN MANIPULATED BOTH TO AFFIRM BIG PUNITIVE AWARDS AND TO LIMIT THEM FEW SUPREME COURT CASES HAVE CAUSED AS MUCH CONFUSION SAYS VICTOR SCHWARTZ A WASHINGTON LAWYER WHO REPRESENTS BUSINESS INTERESTS THE CHAOS GOT SO GREAT THAT THE JUSTICES TOOK THE UNUSUAL STEP OF AGREEING TO REVISIT THE ISSUE ONLY TWO TERMS LATER A RULING IS EXPECTED BY LATE JUNE ALTHOUGH THE SUPREME COURT'S CONFIDENTIAL COMMUNICATIONS ARE OFTEN A TESTIMONY TO TENTATIVENESS THEY DO CONTAIN NUGGETS OF PRACTICAL USE IN THEIR INHOUSE CORRESPONDENCE JUSTICES SOMETIMES EXPRESS VIEWS ON QUESTIONS THAT THE COURT HASN'T YET FORMALLY ADDRESSED ENERGETIC LAWYERS CAN DIG UP THESE STATEMENTS AND FINETUNE THEIR ARGUMENTS ACCORDINGLY THIS IS ONE OF SEVERAL REASONS WHY ASSOCIATES OF THE MARSHALL FAMILY AND A MAJORITY OF THE CURRENT JUSTICES HAVE ATTACKED THE LIBRARY OF CONGRESS FOR MAKING THE MARSHALL PAPERS AVAILABLE TO THE PUBLIC JUST TWO YEARS AFTER HE RETIRED MORE BROADLY CRITICS ASSERT THAT RELEASING THE PAPERS SO SOON AFTER A JUSTICE'S STEPPING DOWN WILL INHIBIT CANDID DELIBERATIONS THE LIBRARY OF CONGRESS INSISTS IT HAD JUSTICE MARSHALL'S WRITTEN PERMISSION TO RELEASE HIS PAPERS UPON HIS DEATH WHILE THAT CONTROVERSY IS LIKELY TO CONTINUE ATTORNEYS ARE LIKELY TO BEGIN DOING RECONNAISSANCE IN THE LIBRARY'S MANUSCRIPT ROOM WHAT A LAWYER MIGHT ASK DOES JUSTICE SOUTER THINK ABOUT THE QUESTION OF WHETHER THE SUPREME COURT EVER MAY ISSUE RULINGS THAT APPLY ONLY IN THE FUTURE RATHER THAN RETROACTIVELY THIS SEEMINGLY TECHNICAL QUESTION CAN HAVE BIG FINANCIAL RAMIFICATIONS WHEN THE HIGH COURT STRIKES DOWN CORPORATE OR INDIVIDUAL TAXES IF A RULING APPLIES RETROACTIVELY TO ALL PARTIES WHO HAVE PAID AN INVALID TAX THE TAXING AUTHORITY MAY FIND THAT IT OWES HUNDREDS OF MILLIONS OF DOLLARS BUT IF THE COURT MAY SOMETIMES ANNOUNCE THAT ITS DECISIONS AREN'T RETROACTIVE THAT THEY ONLY APPLY IN THE FUTURE THEN REFUND CHECKS DON'T GET SENT THE COURT HAS STRUGGLED FOR YEARS WITH THIS ISSUE AND IS TRYING AGAIN THIS TERM TO FASHION A CLEAR RULE IN A CASE INVOLVING HUNDREDS OF MILLIONS OF DOLLARS IN RETIREES' STATE INCOME TAXES ONE OF THE UNKNOWNS UNTIL NOW IS JUSTICE SOUTER'S POSITION IN A MARCH 1991 MEMO IN THE MARSHALL PAPERS HE TELLS HIS COLLEAGUES I AM DISPOSED TO PRESERVE THE JUDICIAL OPTION TO RULE PURELY PROSPECTIVELY IF THE ALTERNATIVE IS A CRUSHING FINANCIAL BLOW TO GOVERNMENT CASE DEFENSE CONTRACTORS MAY BE EXCUSED FROM A FEDERAL LAW REQUIRING 60 DAYS' NOTICE FOR WORKERS ABOUT TO BE FURLOUGHED A FEDERAL COURT IN ST LOUIS HAS RULED THE RULING IS SIGNIFICANT BECAUSE IT APPEARS TO GIVE DEFENSE CONTRACTORS SPECIAL LEEWAY TO TAKE ADVANTAGE OF AN EXEMPTION TO THE NOTICE LAW THAT EXEMPTION RELAXES THE NOTICE REQUIREMENT WHEN A MASS LAYOFF IS CAUSED BY UNFORESEEABLE EVENTS THE CASE WAS BROUGHT BY UNIONS REPRESENTING MORE THAN 1000 GENERAL DYNAMICS CORP EMPLOYEES WHO WERE LAID OFF IN 1991 AFTER THE US NAVY CANCELED THE 44 BILLION A12 FIGHTERPLANE PROJECT THE UNIONS ALLEGED THAT GENERAL DYNAMICS FAILED TO COMPLY WITH THE LAW WHICH REQUIRES NOTICE TO EMPLOYEES INCLUDED IN FURLOUGHS OF AT LEAST 500 WORKERS THE LAW CALLED THE WORKER ADJUSTMENT AND RETRAINING NOTIFICATION ACT OF 1988 ALSO REQUIRES THAT EMPLOYEES GET ADVANCE NOTICE OF LARGE PLANT CLOSINGS IN AN OPINION DISMISSING THE UNIONS' CASE JUDGE JEAN HAMILTON CONCLUDED THAT DEFENSE CONTRACTING IS A UNIQUE INDUSTRY IN WHICH COMPANIES HAVE COME TO EXPECT THAT CONTRACTS WON'T BE TERMINATED EVEN WHEN PROJECTS ARE OVER BUDGET AND BEHIND SCHEDULE THE CASE DEFINES A SET OF CIRCUMSTANCES THAT MANY DEFENSE CONTRACTORS OFTEN FIND THEMSELVES IN PARTICULARLY IN THE CURRENT ENVIRONMENT OF BUDGET CONSTRAINTS AND POSTCOLD WAR DEFENSE CUTBACKS SAID STEPHEN TALLENT A WASHINGTON LABOR LAWYER WHO REPRESENTED GENERAL DYNAMICS IN THE CASE ALTHOUGH THE COMPANY KNEW OF THE PROJECT'S TROUBLES MORE THAN A YEAR BEFORE IT WAS CANCELED JUDGE HAMILTON WROTE A CONTRACTOR EXERCISING COMMERCIALLY REASONABLE BUSINESS JUDGMENT WOULD NOT NECESSARILY CONCLUDE ON THE BASIS OF THIS INFORMATION THAT THE CONTRACT WOULD BE CANCELED IN THE PAST CANCELLATIONS OF SUCH CONTRACTS HAVE BEEN RARE BECAUSE IN MOST CASES THE GOVERNMENT WOULD FIND A WAY TO RENEGOTIATE THE CONTRACT TERMS THE JUDGE SAID ROD TANNER A LAWYER FOR THE UNIONS SAID THE COMPANY KNEW THE A12 CONTRACT MIGHT BE TERMINATED IF THE MEMBERS OF THE BOARD OF DIRECTORS WERE ENTITLED TO ADVANCE WARNING THEN SO WERE THE RANKANDFILE MEMBERS HE SAID MR TANNER SAID THE UNIONS ARE CONSIDERING WHETHER TO APPEAL THE DECISION WHO'S NEWS E LEO MILONAS AN APPEALS COURT JUDGE IN NEW YORK CITY WAS NAMED CHIEF ADMINISTRATIVE JUDGE OF THE NEW YORK STATE COURTS JUDGE MILONAS WAS APPOINTED AS THE COURT SYSTEM'S ADMINISTRATOR BY JUDITH S KAYE WHO BECAME CHIEF JUDGE OF THE STATE'S HIGHEST COURT EARLIER THIS YEAR MILKEN SETTLEMENT THE FEDERAL APPEALS COURT IN NEW YORK UPHELD THE 13 BILLION SETTLEMENT BY MICHAEL MILKEN OF CIVIL CLAIMS RELATED TO HIS WORK AT DEFUNCT DREXEL BURNHAM LAMBERT INC REJECTING A CHALLENGE BROUGHT BY SOME CLAIMANTS THE SECOND US CIRCUIT COURT OF APPEALS SAID THAT THE DISTRICT JUDGE OVERSEEING THE CASE ACTED WITHIN HIS DISCRETION IN APPROVING THE SETTLEMENT AND THAT ALL THE INVOLVED PARTIES HAD SUFFICIENT TIME TO OBJECT MOSCOW MOVE BAKER & BOTTS A HOUSTONBASED LAW FIRM OPENED AN OFFICE IN MOSCOW THE OFFICE WILL INCLUDE TWO PARTNERS FROM THE 400LAWYER FIRM CHINESE AFFILIATION GOODWIN PROCTER & HOAR AFFILIATED WITH JUN HE LAW OFFICES IN BEIJING ZHOU XIAOLIN AN ASSOCIATE AT BOSTONBASED GOODWIN FOR THE PAST THREE YEARS WILL BE A PARTNER IN THE BEIJING LAW FIRM EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9305270103 930527 THESE GREEN ACRES ARE THE PLACE TO BE FOR SOME JAPANESE BACHELOR FISHERMEN ASPARAGUS LURE CITYSLICK TOKYOITES TO LIVE ON REMOTE FARMS BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL HIGASHIYURI JAPAN AFTER 30 YEARS OF SELLING BALL BEARINGS IN TOKYO HARUO HARADA GREW TIRED OF RUNNING THE URBAN RAT RACE NOW HE'S CHASING CHICKENS INSTEAD STOMPING ABOUT HIS FARM IN A PAIR OF MUDDY BOOTS MR HARADA SHOWS A VISITOR HIS 360 CLUCKING HENS AND A TROVE OF EGGS HE WILL PEDDLE TO HIS NEIGHBORS AT THE AGE OF 54 HE HAS BECOME A NEW MAN SINCE FLEEING LAST YEAR TO THIS REMOTE TOWN 250 MILES NORTH OF TOKYO BEFORE I NEVER PICKED UP ANYTHING HEAVIER THAN MY CHOPSTICKS MR HARADA SAYS LOOKING AT HIS WEATHERBEATEN PALMS NOW HE ADDS PROUDLY I CAN CARRY THREE BIRDS WITH ONE HAND AS JAPAN'S RECESSION TRIMS JOBS IN THE CITY FARM LIVING HAS SUDDENLY TAKEN ON A NEW CACHET WITH URBANITES NOW IS YOUR CHANCE TO START FARMING GUSHES A HEADLINE IN GAT'N A BIMONTHLY JOBS MAGAZINE A FARMERS' GROUP SAYS IT RECEIVED MORE THAN 2000 INQUIRIES FROM WOULDBE FARMERS LAST YEAR DOUBLE THE NUMBER FIVE YEARS AGO RECENTLY 600 WOMEN APPLIED TO BE ON A TELEVISION DATING SHOW TAPED ON A REMOTE SOUTHERN ISLAND THE BAIT A CHANCE TO HOOK UP WITH 35 BACHELOR FISHERMEN THIRTY WOMEN GOT DATES ONE LANDED A FIANCE THERE'S MORE TO THE TREND THAN OPPORTUNISM LIKE OLIVER WENDELL DOUGLAS WHO FORSOOK PARK AVENUE FOR HOOTERVILLE IN THE OLD TV SITCOM GREEN ACRES SOME JAPANESE SEEK SPIRITUAL FULFILLMENT ON THE FARM LIFE IS NOT JUST ABOUT MAKING MONEY SAYS KOSAKU INABA 28 A ONETIME SALESMAN WHO PLANS TO GROW ORGANIC VEGETABLES BUT IS THE PASTORAL LIFE ALL IT'S CRACKED UP TO BE FOR DECADES JAPANESE HAVE EQUATED INAKA OR THE COUNTRYSIDE WITH BACKWARDNESS COMMON COMPLAINTS THE DAYS ARE LONG THE PAY IS PIDDLING THE WORK IS BACKBREAKING AND THE HOUSES LACK FLUSH TOILETS DOZENS OF TILLERS THROW IN THE HOE EVERY MONTH THEN THERE ARE THE FROSTY NEIGHBORS COUNTRY PEOPLE RETAIN THE STUFFY TRADITIONS FOR WHICH JAPAN IS FAMOUS FARMING HERE IS MAINLY A FAMILY AND COMMUNAL ACTIVITY AND OLDTIMERS DON'T TAKE KINDLY TO OUTSIDERS NOT SURPRISINGLY A LOT OF CITY SLICKERS DISCOVER THE STICKS CAN BE THE PITS YOU CAN'T START FARMING JUST TO BE FASHIONABLE SAYS TAKESHI TSUKADA WHOSE AGRICULTURAL ROOTS GO BACK 12 GENERATIONS IN TSUKUBA NORTH OF TOKYO TENDERFEET HAVE A LOT OF NERVE FLOCKING TO THE RICE PADDIES HE SAYS CAN THEY WAKE UP AT 5 AM SHOVEL MANURE FIRST THEY SHOULD COME BEGGING TO ME TO TEACH THEM WHAT FARMING IS ALL ABOUT HE SAYS MR TSUKADA WAS MOST ANNOYED RECENTLY WHEN TWO SUITCLAD STOCKBROKERS BARGED ONTO HIS SMALL FARM AND IMMEDIATELY STARTED ASKING QUESTIONS THEY DIDN'T EVEN BRING A GIFT TO SHOW THEIR RESPECT I WANTED TO WRING THEIR NECKS SAYS MR TSUKADA I SAID SCAT' END OF CONVERSATION JIRO SAKAI A 63YEAROLD RETIRED PHONECOMPANY WORKER GOT HIS FIRST TASTE OF COUNTRY HOSPITALITY FIVE YEARS AGO WHEN HE MOVED TO A NORTHERN VILLAGE OF 2000 IN FARM COUNTRY THE NEIGHBORS CALLED HIM STINGY FOR NOT INSTALLING THE LATEST HEATING EQUIPMENT GOSSIPS TAGGED HIM AS UNFRIENDLY BECAUSE HE LOCKED HIS DOOR WHEN HE WENT OUT BUT WHEN HE LEFT HIS DOOR OPEN HE RETURNED TO FIND VILLAGERS SNOOPING AROUND HIS HOUSE INAKA FOLK THINK CITY FOLK LEAD A LAVISH LIFE AND THEY'RE A LITTLE ENVIOUS CHUCKLES MR SAKAI OF COURSE THE TIGHT COMMUNITY IS A BLESSING WHEN HE NEEDS A HAND ON THE FARM BUT HIS WIFE ISN'T IMPRESSED SHE HAS REFUSED TO MOVE FROM A TOKYO SUBURB OUT TO THE BOONDOCKS WITH HIM AND THEY SEE EACH OTHER ONLY A COUPLE OF TIMES A YEAR THE PROBLEMS GO BEYOND THE NEIGHBORS KENSUKE IWASE WHO LEFT TOKYO FIVE YEARS AGO TO TAKE UP DAIRY FARMING IN NORTHERN JAPAN SAYS HIS HORSES KEPT TRAMPLING HIS TOES I DIDN'T THINK BONES BROKE SO EASILY SAYS THE 47YEAROLD FORMER CIVIL SERVANT MASATSUNE KOKUBU A 28YEAROLD WHO USED TO WORK AT A DOUGHNUT SHOP NEAR TOKYO GOT COLD FEET BEFORE HE EVEN REACHED THE FIELDS AFTER MONTHS OF SEARCHING FOR JUST THE RIGHT SPREAD MR KOKUBU RENTED A BIT OF LAND IN MOUNTAINOUS YAMAGATA BEFORE LONG THOUGH HE FELT OVERWORKED FROM CONSTANTLY SHOVELING THE SNOW IN HIS DRIVEWAY HE HATED HIS WINTER JOB CARVING WOODEN DOLLS AFTER HIS SECOND CAR CRASH IN THE SNOW MR KOKUBU PACKED UP AND LEFT HE IS NOW HALFHEARTEDLY LOOKING FOR A FARM IN SUNNY SOUTHERN JAPAN STILL SOME CITY PEOPLE SHOW AN ENTHUSIASM FOR AGRICULTURE THAT NO LIFELONG FARMER CAN MATCH MAKOTO NAGASHIMA A 39YEAROLD FORMER EMPLOYEE OF AN EDUCATIONAL GROUP SAYS HE IS THRILLED TO BE CULTIVATING HIS FAVORITE VEGETABLE ASPARAGUS I LIKE VEGETABLES WITH A DISTINCT SHAPE SAYS MR NAGASHIMA WHO IS NOW LEARNING THE BASICS OF ORGANIC FARMING IN NORTHERN AKITA PREFECTURE LEAFY PRODUCTS LIKE CHINESE CABBAGE THOSE I DON'T CARE FOR MANY TOWNS ARE TAKING ADVANTAGE OF FARMING'S NEW TRENDINESS TO STEM A LONGTERM POPULATION DRAIN HALF OF JAPAN'S FARMERS ARE OVER 60 YEARS OLD SO AKITA IN AN EFFORT TO HELP GREENHORN FARMERS SCRAPE UP THE 300000 OR SO NEEDED TO BUY AND OUTFIT A FARM OFFERS TWOYEAR AGRICULTURAL STUDY PROGRAMS FREE OF CHARGE TO YOUNGER PEOPLE LIKE MR NAGASHIMA THE NATIONAL LAND AGENCY WOOS CITY DWELLERS WITH ESCAPE FROM TOKYO SEMINARS TOWNS ARE OFFERING FREE CATTLE HERB GARDENS HOUSES AND ENTIRE FARMS IF ONLY THE HOMESTEADERS PROMISE TO SETTLE DOWN TO POLISH FARMING'S UNCOUTH IMAGE YOUNG FARMERS IN RICEGROWING MIYAGI PREFECTURE RECENTLY PUT ON A FASHION SHOW FEATURING DESIGNER OVERALLS AND WORK JACKETS WITH DETACHABLE SLEEVES FOR NOW FORMER BALLBEARING SALESMAN MR HARADA SAYS HE IS GOING TO STICK IT OUT AND MEET HIS DAILY QUOTA OF SELLING 100 EGGS AND WHILE LIFE IN HIGASHIYURI IS TOUGH HE SAYS HE FEELS FULFILLED AMONG OTHER THINGS HE HAS FORMED A STRONGER BOND WITH HIS WIFE MISAKO SEEING HER HUSBAND COME HOME A FEW MONTHS AGO WITH A PILE OF UNSOLD EGGS SHE GRITTED HER TEETH AND WENT OUT TO MAKE SOME SALE ROUNDS HERSELF I DECIDED I DON'T CARE WHAT PEOPLE SAY TO ME AS LONG AS THEY BUY THOSE EGGS SAYS THE SOFTSPOKEN MRS HARADA A CHANCE FOR ROMANCE IS WHAT KEEPS 29YEAROLD NOBUHIRO KISHI PLOWING AWAY HE QUIT HIS TOKYO POSTOFFICE JOB LAST MONTH TO BECOME A HAND AT A LARGE FARM AND SAYS HE CAN'T WAIT TO HIT THE FIELDS EACH MORNING ONE OF HIS COWORKERS HE CONFIDES AS HE TIES A BANDANA AROUND HIS HEAD IS A WOMAN WHO MAKES HIS HEART POUND MR KISHI HOPS BAREFOOT IN A MUDDY FIELD TO FLATTEN SOME DARK PILES OF MANURE IN A PLACE LIKE THIS YOU NEED TO HAVE SOMETHING TO ACT AS YOUR DRIVING FORCE HE GRINS HUMMING A TUNE THIS FARMER HAS FALLEN IN LOVE 9305270102 930527 WHAT'S NEWS WORLDWIDE NATO OFFICIALS WITHHELD AN ENDORSEMENT FOR THE NEW BOSNIAN PEACE PLAN WESTERN DEFENSE MINISTERS EMERGED FROM TWO DAYS OF MEETINGS IN BRUSSELS WITHOUT ENDORSING THE SAFEAREAS PLAN WHICH WOULD GIVE BOSNIAN MUSLIMS REFUGE FROM SERB ATTACKS IN HAVENS GUARDED BY UN TROOPS WHO IN TURN WOULD BE PROTECTED BY US AIR POWER THE GROUP'S POSTMEETING COMMUNIQUE PROMISED ONLY TO CONSIDER POSITIVELY ANY UN REQUEST FOR NATO HELP UN MEDIATOR STOLTENBERG VISITED SARAJEVO TO PUSH THE NEW PLAN BUT IT WAS STRONGLY CRITICIZED BY THE MUSLIMLED BOSNIAN GOVERNMENT WHICH CONTENDS THE HAVENS WILL BECOME DE FACTO GHETTOS DEPENDENT ON OUTSIDE AID GERMANY'S BUNDESTAG VOTED 521 TO 132 FOR A PROPOSED CONSTITUTIONAL CHANGE THAT WOULD MAKE IT TOUGHER FOR REFUGEES TO GET INTO GERMANY AND EASIER TO EXPEL THOSE WHO DO NOT QUALIFY TO STAY THE VOTE BY THE LOWER HOUSE OF PARLIAMENT STRUCK DOWN THE GUARANTEED RIGHT OF ALL FOREIGNERS TO SEEK ASYLUM IN THE COUNTRY CLINTON PLANS TO BRING IN A SEASONED POLITICAL OPERATIVE TO HELP RUN THE WHITE HOUSE OFFICIALS SAID THE TWO LEADING CANDIDATES ARE JOHN SASSO A DEMOCRATIC STRATEGIST AND HAROLD ICKES A CLINTON FAMILY FRIEND CAMBODIAN HEAD OF STATE SIHANOUK SAID HE WAS DROPPING HIS PLEDGE TO INCLUDE THE KHMER ROUGE IN A FUTURE GOVERNMENT HE TOLD VISITING FRENCH LAWMAKERS THAT THE NEAR 90 VOTER TURNOUT FOR THIS WEEK'S UNRUN ELECTIONS REPRESENTED A REJECTION OF THE REBELS AN AID PACKAGE FOR RUSSIA CLEARED ITS FIRST LEGISLATIVE HURDLE WINNING APPROVAL FROM A KEY HOUSE SUBCOMMITTEE THE 18 BILLION PACKAGE INCLUDES A 500 MILLION PRIVATIZATION FUND THE CLINTON ADMINISTRATION PROPOSED THE PACKAGE AT A MIDAPRIL G7 MINISTERIAL MEETING LEADERS OF RUSSIA'S REPUBLICS ENDORSED PRESIDENT YELTSIN'S DRAFT CONSTITUTION BUT THE SPEAKER OF THE HARDLINE PARLIAMENT PRESSED AHEAD WITH HIS PLANS TO DEVELOP A RIVAL CONSTITUTION THE LIBRARY OF CONGRESS REFUSED TO CURB ACCESS TO THE LATE JUSTICE MARSHALL'S PAPERS DESPITE REQUESTS FROM HIS FAMILY AND PROTESTS FROM THE SUPREME COURT THAT THE PAPERS WERE RELEASED TOO SOON THE LIBRARY SAID IT IS CONFIDENT IT IS CARRYING OUT MARSHALL'S WISHES A GRAND JURY IN MIAMI INDICTED CHILEAN ARMS MAKER CARLOS CARDOEN TELEDYNE INDUSTRIES AND OTHERS FOR ILLEGALLY EXPORTING MILITARY GOODS FROM THE US IN THE 1980S THE ALLEGED EXPORTS INVOLVED ZIRCONIUM WHICH WAS USED IN CHILE TO PRODUCE CLUSTER BOMBS SOLD TO IRAQ THE CHINESE GOVERNMENT RELEASED ONE OF ITS LONGESTHELD POLITICAL PRISONERS JUST ONE WEEK BEFORE A SCHEDULED US DECISION ON WHETHER TO RENEW CHINA'S TRADE STATUS XU WENLI WAS FREED AFTER SERVING 12 YEARS OF A 15YEAR JAIL SENTENCE US SANCTIONS WILL BE TIGHTENED AGAINST OFFICIALS OF HAITI CLINTON AIDES SAID THE PRESIDENT ANGERED BY THE SLOW PROGRESS TOWARD RESTORING DEMOCRACY IN HAITI PLANS TO FREEZE THE ASSETS AND REVOKE THE VISAS OF HAITIAN OFFICIALS THE SOURCES SAID A RADICAL BLACK GROUP THREATENED TO ACT BRUTALLY AGAINST WHITE SOUTH AFRICANS UNLESS POLICE FREED DOZENS OF GROUP MEMBERS ARRESTED TUESDAY THE PAN AFRICANIST CONGRESS ALSO SAID IT WOULD STAY OUT OF DEMOCRACY TALKS UNTIL ITS MEMBERS ARE RELEASED THE US SIGNALED IT MIGHT OFFER CONCESSIONS IF NORTH KOREA OPENS ITS NUCLEAR FACILITIES TO FOREIGN INSPECTIONINCLUDING POSSIBLE NORTH KOREAN INSPECTIONS OF US MILITARY BASES IN SOUTH KOREA GUATEMALA'S HIGHEST COURT DECLARED ILLEGAL PRESIDENT SERRANO'S SEIZURE OF NEARDICTATORIAL POWERS A DAY EARLIER BUT THE GOVERNMENT'S LEADERSHIP APPEARED TO PAY NO HEED MEANWHILE SECURITY FORCES HALTED PUBLICATION OF THREE MAJOR NEWSPAPERS THE PAKISTANI SUPREME COURT REINSTATED PRIME MINISTER SHARIF AND THE NATIONAL ASSEMBLY IN A DECISION THAT OVERTURNED PRESIDENT ISHAQ KHAN'S DISSOLUTION OF THE PARLIAMENT LAST MONTH DIED JOSEPH PULITZER JR 80 CHAIRMAN OF PULITZER PUBLISHING CO AND GRANDSON OF THE GROUP'S FOUNDER IN ST LOUIS OF CANCER 9305270101 930527 UNIT OF CML GROUP IS AWARDED 1 MILLION CHASKA MINN NORDICTRACK INC A UNIT OF CML GROUP INC SAID IT WAS AWARDED 1 MILLION BY A US DISTRICT COURT UNDER A CONSENT JUDGMENT AGREEMENT IN CONNECTION WITH A TRADE DRESS RIGHTS LAWSUIT BROUGHT AGAINST CSA INC CML BASED IN ACTON MASS SAID THE DECISION STEMMED FROM CSA'S INFRINGEMENT ON THE DESIGN STYLE AND ENGINEERING OF ITS NORDICTRACK CROSSCOUNTRY SKI EXERCISE EQUIPMENT THE JUDGMENT ALSO EXTENDED TO THE DESIGN AND CONFIGURATION OF CERTAIN MODELS OF ITS ALPINE TRACKER THE LAWSUIT HAS BEEN SETTLED ON TERMS ACCEPTABLE TO BOTH SIDES SAID FREDERICK FINCH ATTORNEY FOR CSA A CLOSELY HELD FIRM BASED IN SOUTH EASTON MASS IF THE JUDGMENT STANDS THE AWARD COULD BOOST CML'S PRETAX PROFIT BY ABOUT 175 CENTS A SHARE A CML SPOKESMAN SAID CML REPORTED NET INCOME OF 15 MILLION OR 43 CENTS A SHARE FOR THE FISCAL THIRD QUARTER ENDED MAY 1 IN THE YEAREARLIER PERIOD CML EARNED 62 MILLION OR 18 CENTS A SHARE AFTER CHARGES FROM DISCONTINUED OPERATIONS AND RESTRUCTURING 9305270100 930527 BIG INVESTORS TAKE HIGH RISK APPROACH TO LATIN AMERICA BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LURED BY VISIONS OF STUPENDOUS PROFITS IN EMERGING MARKETS MUTUAL FUNDS AND INSTITUTIONAL MONEY MANAGEMENT COMPANIES ARE MAKING SOME HIGHRISK INVESTMENTS BECAUSE THEY ARE FRUSTRATED IN FINDING SUFFICIENT EXCHANGETRADED SHARES OF THE KINDS OF COMPANIES THEY LIKE MANY US INVESTMENT FIRMS ARE DIRECTLY BUYING STAKES IN CLOSELY HELD CORPORATIONS PARTICULARLY IN LATIN AMERICA THESE PRIVATE STOCK INVESTMENTS WHICH CAN'T BE READILY SOLD WHEN PROBLEMS ARISE ARE AMONG THE MOST SPECULATIVE BETS UNDERTAKEN BY INVESTMENT COMPANIES THE BOOST IN PRIVATE STOCK INVESTMENTS AMOUNTS TO A RISKY VOTE OF CONFIDENCE IN POLITICAL AND ECONOMIC REFORMS IN LATIN AMERICA WHICH HAS A HISTORY OF GOVERNMENT NATIONALIZATION SHORT OF THAT OWNERSHIP MIGHT BE CONTESTED IN THE EVENT OF BANKRUPTCY ALSO PRIVATE STOCK HOLDERS CAN BE SUBJECT TO DECISIONS BY BOARDS OF DIRECTORS CONTROLLING SHAREHOLDER GROUPS AND GOVERNMENTS THESE QUIET PURCHASES BY INVESTMENT GROUPS IN LATIN AMERICA RUN PARALLEL WITH BIG PUBLICIZED STRATEGIC ALLIANCES FORGED BY US COMPANIES SUCH AS ANHEUSERBUSCH COS AND COCACOLA CO WHILE IT IS UNDERSTANDABLE THAT US CONSUMER COMPANIES WANT A FOOTHOLD IN POPULOUS LATIN AMERICAN MARKETS IT IS UNUSUAL TO SEE BIG US INVESTORS INCLUDING BEA ASSOCIATES A NEW YORK MANAGER OF INSTITUTIONAL MONEY AND MUTUAL FUNDS CAPITAL INTERNATIONAL INC A LOS ANGELESBASED GLOBAL MONEY MANAGER AND MUTUAL FUND COMPANIES SUCH AS SCUDDER STEVENS & CLARK BECOMING BUSINESS PARTNERS WITH LATIN AMERICAN GOVERNMENTS FAMILIES AND BUSINESSES THIS IS NEW NOBODY IS THE GREAT EXPERT I AM SURE WE WILL HAVE OUR TUMBLES SAYS PIERS PLAYFAIR SENIOR VICE PRESIDENT AT BEA BUT FOR ALL OF THE RISKS THERE IS POTENTIAL FOR BIG GAINS IT'S RARE TO BE ABLE TO BUY SIGNIFICANT STAKES IN CORE INDUSTRIES AT A REASONABLE PRICE CAPITAL INTERNATIONAL FOR EXAMPLE HELPED FINANCE THE PRIVATE SECTOR BUYOUT OF TWO BIG MEXICAN BANKS BANCOMER AND BANAMEX BANCO NACIONAL DE MEXICO THE FIRM'S 2 BILLION EMERGING MARKETS GROWTH FUND RESERVED MAINLY FOR INSTITUTIONAL INVESTORS HAS NEARLY 100 MILLION INVESTED IN NONLISTED SECURITIES BEA HAS A 9 STAKE IN A PRIVATE NATURAL GAS DISTRIBUTION COMPANY IN ARGENTINA AND A 10 STAKE IN A PRIVATE BRAZILIAN TEXTILE COMPANY SCUDDER HOLDS A 56 MILLION STAKE IN NORTEL INVERSORA AN ARGENTINE PHONE COMPANY THE INVESTMENT REPRESENTS 97 OF THE ASSETS OF THE MUTUAL FUND GIANT'S ARGENTINA FUND SCUDDER ALSO IS WORKING ON OTHER PRIVATE EQUITY DEALS BUT WON'T DISCLOSE DETAILS SECURITIES AND EXCHANGE COMMISSION RULES SAY OPENEND MUTUAL FUNDS CAN HOLD AS MUCH AS 15 OF THEIR ASSETS IN PRIVATE UNLISTED STOCK THERE IS NO LIMIT ON PRIVATE STOCK HOLDINGS FOR CLOSEDEND FUNDS THE AGENCY SAYS TYPICALLY PRIVATE EQUITY PLAYERS SEEK AT LEAST A 25 ANNUAL RETURN OVER A PERIOD OF FOUR TO FIVE YEARS BUT IN FACT PRIVATE STOCK INVESTING IN LATIN AMERICA IS EXPERIMENTAL THESE ARE OBSCURE EXOTIC INVESTMENTS SAYS RICHARD WATKINS CHIEF EXECUTIVE OF LATINVEST SECURITIES A LONDONBASED INVESTMENT AND RESEARCH FIRM BECAUSE THERE OFTEN ISN'T A PUBLIC MARKET FOR THIS PRIVATE STOCK ITS VALUE IS LARGELY A MATTER OF ASSERTION BY THE HOLDERS VALUATION OF PRIVATE EQUITY IS PURELY AN ART FORM CAUTIONS HARI HARIHARAN AN EXECUTIVE AT BANCO SANTANDER INDEED THE MUTUAL FUND INDUSTRY HAD PREVIOUS EXPERIENCE WITH UNMARKETABLE STOCK THAT WAS ANYTHING BUT PLEASANT IN THE 1960S THE ENTERPRISE FUND RUN BY FRED CARR SPECIALIZED IN BUYING UNREGISTERED LETTER STOCK OF STARTUP COMPANIES THE FUND PERFORMED FABULOUSLY IN THE BULL MARKET FRENZY BUT WHEN THE MARKET HEADED DOWN THE VALUE OF THE LETTER STOCK SUDDENLY BECAME ZERO BECAUSE THERE WEREN'T ANY BUYERS TODAY'S HOT DEMAND FOR PRIVATE STOCK COMES AS MANY LATIN AMERICAN STOCK MARKETS ARE PERFORMING POORLY THE MEXICAN STOCK MARKET IS DOWN NEARLY 7 THIS YEAR IN US DOLLAR TERMS PRIMARILY BECAUSE OF CONCERNS OVER NORTH AMERICAN FREE TRADE AGREEMENT NEGOTIATIONS THE ARGENTINIAN MARKET IS DOWN 15 THE CHILEAN STOCK MARKET IS DOWN NEARLY 2 EVEN SO SOME PLAYERS BELIEVE THE DEMAND FOR PRIVATE STOCK REFLECTS A LONGTERM BULLISH VIEW ON THESE ECONOMIES THE RECENT ROUND OF STRATEGIC PURCHASES IN MEXICO BY US CONCERNS SENDS AN UNAMBIGUOUSLY BULLISH SIGNAL SAYS WILLIAM F TRUSCOTT PORTFOLIO MANAGER OF SCUDDER'S LATIN AMERICA FUND WE THINK THE MEXICAN MARKET IS GOING TO COME ROARING BACK IN EFFECT US MONEY MANAGEMENT FIRMS ARE BYPASSING INVESTMENT BANKS AND CAPITAL MARKETS AND TAKING AN UNUSUAL STEP INTO MERCHANT BANKING WHY IS IT HAPPENING MANY CONTROLLING FAMILIES OR INVESTMENT GROUPS OF LATIN INDUSTRIAL COMPANIES SEE A NEW ERA OF CAPITALISM BARRELING TOWARD THEM TO COMPETE THEY NEED TO MODERNIZE PLANTS AND EQUIPMENT BUT THEIR COST OF CAPITAL IN THE PUBLIC MARKETS IS HIGH EQUITY CAPITAL IS EXPENSIVE BECAUSE INFLATION POLITICAL UNCERTAINTY AND CURRENCY CONCERNS CHEAPEN THE PRICES THEIR STOCKS FETCH IN THE PUBLIC MARKET IN ADDITION SOME OF THESE OWNERS STUCK WITH THEIR COMPANIES THROUGH THE CRISIS IN LATIN ECONOMIES IN THE 1980S AND DON'T WANT TO DILUTE THE VALUE OF THEIR STOCK WITH A PUBLIC OFFERING JUST WHEN THEY MIGHT START REALIZING BIG RETURNS DEBT MARKETS ARE EQUALLY COSTLY GENERALLY US CREDIT RATING AGENCIES ARE RELUCTANT TO GIVE COMPANIES HIGHER CREDIT RATINGS THAN THE SOVEREIGN NATIONS IN WHICH THEY ARE BASED NO MATTER HOW GOOD THEIR BUSINESSES OR HOW CLEAN THEIR BALANCE SHEETS SO BOND YIELDS FOR LATIN AMERICAN COMPANIES TEND TO BE HIGHER THAN US OR EUROPEAN YIELDS MAKING THE COST OF DEBT UNCOMPETITIVE BY SELLING PRIVATE STOCK LATIN AMERICAN CORPORATIONS CAN SET THE TERMS MAINTAIN CONFIDENTIALITY AND AVOID THE COSTS OF PUBLIC OFFERINGS AND BUYERS GET A CHANCE TO PURCHASE LARGE BLOCKS OF STOCK AT PRICES OFTEN BELOW BOOK VALUE THESE FAMILIES' EYES LIGHT UP WHEN I TELL THEM THAT I HAVE AN INSTITUTIONAL INVESTOR WHO ISN'T INTERESTED IN DIVIDENDS OR VOTING STOCK SAYS DARIO PEDRAJO VICE PRESIDENT AT VESTCOR PARTNERS A MIAMIBASED INVESTMENT BANK THAT IS BUYING PRIVATE STOCK POSITIONS IN A NUMBER OF LATIN AMERICAN COMPANIES PRIVATE INVESTMENT IS NOT RESTRICTED TO MEXICO HE ADDS WE'RE SEEING INTEREST IN COUNTRIES LIKE PERU I THINK IT IS A LONGTERM BULL SIGNAL AUDLEY TWISTON DAVIES MANAGING DIRECTOR OF LATIN AMERICAN SECURITIES LTD LONDON SAYS CONTROLLING SHAREHOLDERS OF MANY COMPANIES ARE VERY HAPPY TO HAVE A NONPREDATORY PARTNER WIH A FIVE TO SEVENYEAR VIEW MR TWISTON DAVIES IS ASSEMBLING A TEAM OF PRIVATE STOCK ANALYSTS TO FIND INVESTMENTS FOR HIS CLIENTS FOR INVESTORS BUYING PRIVATE STOCK ACKNOWLEDGES MR TRUSCOTT OF SCUDDER IF YOU MAKE A MISTAKE YOU STILL OWN IT BUT THE HUGE RETURNS ARE MADE BY THOSE WHO WENT IN EARLY TOOK THE RISK THEN REALIZE THEIR RETURNS LATER IN THE PUBLIC MARKET WHEN THE COMPANIES GO PUBLIC 9305270098 930512 THE DANGERS OF PLASMA PROTECTIONISM BY THERESE RAPHAEL BY THE END OF LAST YEAR MORE THAN 300 FRENCH HEMOPHILIACS HAD DIED OF AIDS FROM HIVCONTAMINATED BLOOD DISTRIBUTED BY THE STATERUN BLOOD PROGRAM THE NATIONAL BLOOD TRANSFUSION CENTER REFUSING VIRUSFREE PRODUCTS FROM THE US AND ELSEWHERE GAVE THE BAD BLOOD TO MORE THAN HALF OF FRANCE'S 3000 HEMOPHILIACS AMERICA TOO FACES THE CATASTROPHE OF MANY HEMOPHILIACS INFECTED WITH THE AIDS VIRUS THE DISORDER REQUIRES TREATMENT WITH LARGE QUANTITIES OF BLOOD PRODUCTS AND MANY HEMOPHILIACS WERE INFECTED IN THE TIME BEFORE THE DANGERS AND PROLIFERATION OF THE VIRUS WERE FULLY KNOWN THE SPECIAL TRAGEDY IN FRANCE'S SCANDAL WAS RATHER THAT OFFICIALS KNEW THE BLOOD WAS CONTAMINATED AND THEY ALSO KNEW THAT VIRUSFREE PRODUCTS WERE AVAILABLE ELSEWHERE BUT INSTEAD OF REDUCING THE STATE'S ROLE IN THE BLOOD BUSINESS EUROPE APPEARS TO BE WIDENING STATE CONTROL OF BLOOD PRODUCTS EUROPEAN OFFICIALS' REACTION TO THE HEMOPHILIACS' SAD STORY HAS BEEN AN ALTOGETHER ODD ONE NOMINALLY THEY BLAME THE EVENTS ON THE GUILTY ADMINISTRATORS BUT WHEN IT COMES TO FUTURE POLICY THEY HAVE CHOSEN A PATH OF BLOOD PROTECTIONISM THAT PROCEEDS AS IF COMMERCIALISM AND BIG BUSINESS WERE THE CAUSE OF ALL THE PROBLEMS FOR EXAMPLE THEY SAY THAT THE PATH TO PREVENTING WIDESPREAD TRAGEDY IS BANNING PAID DONORS IN JANUARY FRANCE PASSED A LAW THAT WILL FURTHER CURB IMPORTS OF COMMERCIALLY PRODUCED BLOOD PLASMA BELGIUM AND THE NETHERLANDS MAY FOLLOW SUIT AND EUROPE'S BLOOD BANK BUREAUCRATS ARE LOBBYING THE EUROPEAN COMMISSION THE COUNCIL OF EUROPE AND THE WORLD HEALTH ORGANIZATION TO ESTABLISH RULES THAT WOULD KEEP PRIVATE INDUSTRY OUT OF THE PLASMA MARKET THE RULES WOULD BAN PAID DONATIONS OF BLOOD PLASMA AND PRODUCTS COMING FROM OUTSIDE THE EUROPEAN COMMUNITY EUROPEAN HEMOPHILIACS LIKE AMERICANS ARE AMONG THE LUCKIER IN THE WORLD THEY HAVE ACCESS TO THE SOPHISTICATED EXPENSIVE PRODUCTS NECESSARY TO TREAT THEIR DISEASE THE AREA OF ACCESS IS WHERE THE BLOOD BUREAUCRATS COULD HOPELESSLY COMPLICATE IF NOT ENDANGER HEMOPHILIACS' LIVES PRIVATE INDUSTRY NOW SUPPLIES 79 OF THE WORLD MARKET IN PLASMA PRODUCTS AND OVER HALF OF EUROPE'S ROUGHLY 80 OF THE INDUSTRY'S PRODUCTS COME FROM PAID DONORS AND MUCH OF THE PLASMA FOR THESE PRODUCTS IS IMPORTED FROM THE US EUROPE'S STATERUN BLOOD BANKS DON'T LIKE THE COMPETITION SO THEY ARE URGING THE EC AND MEMBER GOVERNMENTS TO CUT OFF THE INDUSTRY'S SUPPLY LINES AN EC DIRECTIVE ENCOURAGES BOTH SELFSUFFICIENCY PLASMA GENERATED WITHIN THE EC AND UNPAID DONATIONS ITS RULES WORK TO RESTRICT IMPORTS BANNING IMPORTS AND PAID DONATIONS THREATENS TO DECREASE DRASTICALLY AN ALREADY STRAINED SUPPLY ELIMINATE ALTERNATIVES TO STATEDIRECTED PRODUCTS AND RETARD CRUCIAL RESEARCH AND DEVELOPMENT ON WHICH INDUSTRY SPENDS MILLIONS OF DOLLARS ANNUALLY HEMOPHILIACS AREN'T THE ONLY POTENTIAL VICTIMS HERE BURN AND SHOCK PATIENTS NEED PLASMA PRODUCTS TOO FOR INSTANCE BAXTER INTERNATIONAL INC HAS A MAJOR FACILITY IN LESSINES BELGIUM WHICH SUPPLIES THE WORLD WITH GAMMACARD AN INTRAVENOUS IMMUNOGLOBULIN PRODUCT THE PLANT RELIES ON PAID DONOR PLASMA FROM BAXTER'S FACILITY IN LOS ANGELES BUT THE PROPOSED BELGIAN LAW TO EXCLUDE PAID DONATIONS AND IMPORTED PLASMA WOULD JEOPARDIZE THE WORLDWIDE SUPPLY OF GAMMACARD THE BELGIAN HEMOPHILIA SOCIETY RECENTLY TOLD THEIR HEALTH MINISTER THAT IN THE UNANIMOUS OPINION OF HEMOPHILIA TREATERS THREE PRODUCTSMONOCLATE P FEIBA AND AUTOPLEX ARE ESSENTIAL FOR TREATMENT ALL ARE COMMERCIAL PRODUCTS FROM PAID DONATIONS THE EC DIRECTIVE'S DEFENDERS ARGUE THAT INDUSTRY CAN CONTRACT WITH PUBLIC PROGRAMS FOR PLASMA BUT THE MANUFACTURERS SAY THERE IS NOWHERE NEAR ENOUGH VOLUNTARILY GENERATED PLASMA PAYING DONORS USUALLY 10 TO 15 AN HOUR FOR A TWOHOUR PROCESS IS NECESSARY TO MEET DEMAND IT'S NOT SURPRISING THAT SOME BLOOD BANK BUREAUCRATS ARE TAKING SUCH SOCIALIZATION ONE STEP FURTHER THEY ALSO WANT TO GET INVOLVED IN DECIDING HOW MUCH TREATMENT HEMOPHILIACS NEED SOME ARE PUSHING FOR RATIONAL TREATMENT WHICH IS TO SAY THEY FEEL THEY CAN IMPROVE ON THE WAY THE MARKET ALLOCATES TREATMENT KLAUS SCHIMPF OF THE WORLD FEDERATION OF HEMOPHILIA REMARKS THAT THE TERM RATIONAL TREATMENT' REMINDS ME OF A GOVERNMENT TRYING TO RATION FOOD IN TIMES OF WAR TERMING THIS THEN RATIONAL FEEDING' THE RED CROSS AND PUBLIC BLOOD PROGRAM DIRECTORS INSIST THAT PAID DONATIONS ARE MORE LIKELY TO BE CONTAMINATED IN FACT NO CONCLUSIVE STUDIES HAVE SHOWN THIS SCIENCE MAY SOMEDAY RENDER THIS DEBATE IRRELEVANT SINCE COMPANIES ARE ALREADY MAKING PROGRESS ON DEVELOPING VIRUSFREE RECOMBINANT PLASMA IN THE MEANTIME EUROCRATS MAY BE PUTTING ALL EUROPEAN HEMOPHILIACS IN THE SAME POSITION THAT FRENCH HEMOPHILIACS FACED WHEN THEY WERE INFECTED WITHOUT A RIGHT TO CHOOSE MISS RAPHAEL IS DEPUTY FEATURES EDITOR OF THE WALL STREET JOURNAL EUROPE SEE RELATED LETTER LETTERS TO THE EDITOR VOLUNTEER BLOOD DONORS WSJ MAY 27 1993 9305120062 YY93 MM05 9305270097 930527 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 BANK OF HAWAII 125 MILLION OF SUBORDINATED NOTES DUE JUNE 1 2003 PRICED AS 6 7/8 S AT 99609 TO YIELD 693 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 078 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC BANK OF HAWAII IS A UNIT OF BANCORP HAWAII INC BARNETT BANKS INC 150 MILLION OF NOTES DUE JUNE 1 1996 PRICED INITIALLY AT PAR TO FLOAT QUARTERLY AT A SPREAD OF 023 PERCENTAGE POINT ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH GOLDMAN SACHS & CO THREEMONTH LIBOR IS CURRENTLY 33125 THE NOTES WHICH PAY INTEREST QUARTERLY ARE NONCALLABLE FOR ONE YEAR THE ISSUE IS RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P FOAMEX LP AND FOAMEX CAPITAL CORP 160 MILLION OF SENIOR SECURED NOTES DUE JUNE 1 2000 THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP NONCALLABLE FOR FIVE YEARS THE NOTES WERE PRICED AT PAR TO YIELD 95 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P OLD DOMINION ELECTRIC COOPERATIVE 130 MILLION PRINCIPAL AMOUNT OF 748 FIRSTMORTGAGE BONDS DUE 2013 AS WELL AS 120 MILLION PRINCIPAL AMOUNT OF 778 FIRSTMORTGAGE BONDS DUE 2023 THROUGH AN UNDERWRITING GROUP MANAGED BY SMITH BARNEY HARRIS UPHAM & CO SCOTT & STRINGFELLOW INC INVESTMENT CORP AND WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS THE OFFERING PRICE FOR BOTH THE 20YEAR BONDS AND THE 30YEAR BONDS IS AT PAR PLUS ACCRUED INTEREST IF ANY FROM THE DATE OF ISSUANCE WHICH IS EXPECTED TO BE JUNE 3 FILA HOLDINGS SPA INITIAL OFFERING OF 75 MILLION AMERICAN DEPOSITARY RECEIPTS EACH REPRESENTING FIVE COMMON SHARES PRICED AT 18 APIECE BY GEMINA INVESTMENTS SA A UNIT OF GEMINA SPA THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC HAMILTON FINANCIAL SERVICES CORP INITIAL OFFERING OF THREE MILLION COMMON SHARES PRICED AT 7 APIECE THROUGH AN UNDERWITING GROUP LED BY ALEX BROWN & SONS HEALTHCARE REALTY TRUST INITIAL OFFERING OF SIX MILLION COMMON SHARES PRICED AT 1950 APIECE THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP MARK CENTERS TRUST INITIAL OFFERING OF 775 MILLION SHARES PRICED AT 1950 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO NUEVO ENERGY CORP 27 MILLION COMMON SHARES PRICED AT 2175 APIECE THROUGH UNDERWRITERS LED BY PAINEWEBBER INC RESOURCE MORTGAGE GROUP INC INITIAL OFFERING OF 63 MILLION COMMON SHARES PRICED AT 875 APIECE THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY 2438 MILLION 1993 SERIES A HEALTHFACILITIES REVENUE CERTIFICATES OF PARTICIPATION PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS FOR REOFFERED SECURITIES RANGE FROM 25 IN OCTOBER 1993 TO 585 IN 2025 NOT FORMALLY REOFFERED TO INVESTORS WERE 275 MILLION PERIODIC AUCTION RESET SECURITIES AND 275 MILLION INVERSE FLOATING RATE SECURITIES ALL WITH A FINAL MATURITY OF OCT 1 2011 AMBAC INDEMNITY CORP IS INSURING THE ENTIRE ISSUE AND THE SECURITIES CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P FAIRFAX COUNTY VA 103 MILLION SERIES 1993B PUBLICIMPROVEMENT BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 523 YIELDS FOR REOFFERED BONDS RANGE FROM 4 IN 1997 TO 535 IN 2006 THE BONDS CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P SOUTHERN MANAGEMENT CO 127 MILLION OF MULTIFAMILYMORTGAGEBACKED SECURITIES PRICED IN THREE PARTS THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES WERE ISSUED THROUGH DLJ MAC 1993MF7 A SPECIALPURPOSE VEHICLE CLASS A1 CERTIFICATES WHICH MAKE UP 90 MILLION OF THE OFFERING WERE PRICED WITH A 74 COUPON AND HAVE A 91YEAR AVERAGE LIFE THE CERTIFICATES WERE RATED TRIPLEA BY BOTH S&P AND DUFF & PHELPS CO CLASS A2 CERTIFICATES WHICH MAKE UP 186 MILLION OF THE OFFERING WERE PRICED WITH A 795 COUPON AND HAVE A 10YEAR AVERAGE LIFE THE CERTIFICATES WERE RATED SINGLEA BY S&P AND DOUBLEA BY DUFF & PHELPS CLASS B CERTIFICATES WHICH MAKE UP 184 MILLION OF THE OFFERING WERE PRICED WITH A 94 COUPON AND HAVE A 10YEAR AVERAGE LIFE THE CERTIFICATES WERE GIVEN A TRIPLEB RATING BY DUFF & PHELPS AND WERE NOT RATED BY S&P FULL PRICING DETAILS FOR ALL CLASSES WERE NOT AVAILABLE AMER GROUP FINLAND 75 MILLION OF 6 1/4 CONVERTIBLE EUROBONDS DUE JUNE 15 2003 AT ISSUE PRICE PAR VIA NATWEST CAPITAL MARKETS LTD BONDS CALLABLE FROM JULY 6 1998 AT PAR EACH BOND CONVERTIBLE INTO AMER CLASS A SHARES AT EXERCISE PRICE OF 144 FINNISH MARKAA A PREMIUM OF 18 OVER TUESDAY'S CLOSING PRICE FEES 25 POINTS AMERICAN EXPRESS TRAVEL RELATED SERVICES CO US PARENT 125 MILLION OF FLOATINGRATE EURONOTES DUE JUNE 23 1998 AT ISSUE AND FIXED REOFFER PRICE 999 VIA LEHMAN BROTHERS INTERNATIONAL INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS PLUS 0375 POINT BONDS CALLABLE ON JUNE 1996 INTEREST PAYMENT DATE AND ON EACH PAYMENT DATE THEREAFTER FEES 02 POINT BARCLAYS BANK PLC UK 100 MILLION OF 9 7/8 UNDATED SUBORDINATED EUROBONDS AT ISSUE PRICE 100701 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 98951 TO YIELD 9768 TO MAY 12 2008 A SPREAD OF 135 BASIS POINTS OVER 9 GILT OF 2008 BONDS WILL TRADE INTERCHANGEABLY WITH 200 MILLION OF IDENTICAL OUTSTANDING NOTES ALL OTHER TERMS UNCHANGED CALLABLE AT PAR ON MAY 12 2008 AND SUBSEQUENTLY EVERY FIVE YEARS IF NOT CALLED BORROWER MUST RESET COUPON AT HIGHER OF CURRENT COUPON OR 240 BASIS POINTS ABOVE YIELD ON THENPREVAILING FIVEYEAR GILT FEES 25 POINTS BRITANNIA BUILDING SOCIETY UK 100 MILLION OF SENIOR UNSECURED AND UNSUBORDINATED FLOATINGRATE EURONOTES DUE JUNE 1997 AT ISSUE PRICE PAR VIA SAMUEL MONTAGU & CO ISSUE PRICE COMPRISED OF NOTES AND COUPONS EQUAL TO 9971 AND ADDITIONAL DETACHABLE INTEREST RATES EQUAL TO 029 HOLDERS OF ADIRS ARE ENTITLED TO INTEREST OF 5 LESS THREEMONTH LIBOR PROVIDED THAT LIBOR IS BELOW 5 NOTES PLUS COUPON REOFFERED AT 9943 INTEREST FLOATS AT THREEMONTH LIBOR PLUS 15 BASIS POINTS PAYABLE QUARTERLY COMPAGNIE BANCAIRE FRANCE 100 MILLION ECU OF 725 EUROBONDS DUE JUNE 25 1998 AT ISSUE PRICE 101375 VIA PARIBAS CAPITAL MARKETS LTD REOFFERED AT 998 TO YIELD 42 BASIS POINTS OVER FIVEYEAR BON A TAUX FIXE ET INTERETS FEES 1875 POINTS DAIMLERBENZ INTERNATIONAL FINANCE BV GERMAN PARENT 125 BILLION ITALIAN LIRE OF 10 1/2 EUROBONDS DUE JUNE 23 2000 AT ISSUE PRICE 101275 VIA DEUTSCHE BANK AG BONDS YIELD 1063 ANNUAL AFTER DEDUCTING FULL FEES OF 1875 POINTS GUARANTOR DAIMLERBENZ AG DEUTSCHE FINANCE NETHERLANDS BV GERMAN PARENT 500 MILLION MARKS OF 6 1/2 EUROBONDS DUE JUNE 30 1998 AT ISSUE PRICE 10185 VIA DEUTSCHE BANK AG BONDS YIELD 654 ANNUAL AFTER DEDUCTING FULL FEES OF TWO POINTS A SPREAD OF 16 BASIS POINTS OVER BUNDS GUARANTOR DEUTSCHE BANK AG JAPAN DEVELOPMENT CORP JAPAN 140 MILLION OF 1 1/8 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE JUNE 17 1997 AT ISSUE PRICE PAR VIA NIKKO EUROPE LTD GUARANTOR TOKAI BANK FEES 225 POINTS EACH 10000 BOND CARRIES TWO WARRANTS TO PURCHASE SHARES IN COMPANY AT TERMS TO BE FIXED JUNE 2 INDICATED PREMIUM 25 WARRANTS EXERCISABLE FROM JULY 1 1993 TO JUNE 10 1997 MITSUBISHI CORP FINANCE PLC JAPAN PARENT 10 BILLION YEN OF 435 EUROBONDS DUE SEPT 30 1996 AT ISSUE AND FIXED REOFFER PRICE 1001 VIA SANWA INTERNATIONAL PLC BONDS YIELD 431 ANNUAL FEES 02 POINT TAISAI ONCHO CO JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE NOTES DUE SEPT 30 1997 CARRYING A 1 7/8 COUPON AT PAR VIA NOMURA BANK SWITZERLAND EACH 50000FRANC NOTE IS CONVERTIBLE FROM JUNE 28 1993 TO SEPT 23 1997 INTO COMPANY SHARES CONVERSION PRICE TO BE FIXED JUNE 1 FEES 1625 POINTS WEST JAPAN RAILWAY CO JAPAN 200 MILLION SWISS FRANCS OF 4 3/4 PUBLIC BONDS DUE JUNE 23 2000 PRICED AT 100 3/4 VIA UNION BANK OF SWITZERLAND FEES 2125 POINTS 9305270096 930527 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG NOW THAT YOU'VE BOUGHT THAT NEW COMPUTER YOU'VE PROBABLY LEARNED A FACT OF LIFE WITH PCS SOFTWARE CAN BE EXPENSIVE EVEN WITH PRICE WARS AND DISCOUNTS LEADING WORDPROCESSING AND SPREADSHEET PACKAGES CAN TOP 200 AND GAMES AND UTILITY PACKAGES DESIGNED TO MAKE COMPUTING FUN OR EASY CAN APPROACH 100 A POP BUT THERE'S AN ALTERNATIVE SOURCE OF GOOD SOFTWARE THAT COSTS MUCH LESS THAN COMMERCIAL COMPANIES' PRODUCTS IT'S CALLED SHAREWARE AND DEDICATED COMPUTER USERS HAVE RELIED ON IT FOR YEARS MOST SHAREWARE PROGRAMS ARE WRITTEN BY TALENTED INDIVIDUALS IN THEIR SPARE TIME AND MADE AVAILABLE ON THE HONOR SYSTEM IF YOU TRY ONE FOR A WEEK OR SO AND DECIDE TO USE IT REGULARLY YOU ARE ASKED TO MAIL THE AUTHOR A CHECK FOR A RELATIVELY SMALL SUM TYPICALLY 10 TO 50 IN RETURN THE AUTHOR MAY SEND YOU A PRINTED MANUAL FOR THE PROGRAM AGREE TO PROVIDE UPDATES AS HE OR SHE IMPROVES IT OR TELL YOU HOW TO ACTIVATE ADDITIONAL FEATURES OR DEACTIVATE NOTICES THE PROGRAM DISPLAYS REMINDING YOU TO PAY UP SHAREWARE ISN'T FREE UNLESS IT'S SPECIFICALLY LABELED AS SUCH AND THUS BECOMES FREEWARE AND IT ISN'T IN THE PUBLIC DOMAIN UNLESS ITS AUTHOR EXPLICITLY PLACES IT THERE IT IS ALSO NOT TO BE CONFUSED WITH FREE DEMO VERSIONS OF COMMERCIAL PROGRAMS WHICH USUALLY ARE PASSED OUT IN CRIPPLED FORM FOR INSTANCE WITHOUT THE ABILITY TO SAVE OR PRINT FILES IN MOST CASES SHAREWARE PROGRAMS ARE FULLFEATURED COPYRIGHTED PRODUCTS WHOSE AUTHORS EXPECT TO BE PAID THEY ARE MERELY OFFERED ON A TRYBEFOREYOUBUY BASIS AND ARE DISTRIBUTED THROUGH BULLETIN BOARDS ONLINE SERVICES AND OTHER UNCONVENTIONAL MEANS AUTHORS ENCOURAGE COPYING OF THE SOFTWARE SO IT CAN BE TRIED BY MORE PEOPLE BUT IF YOU MAKE A SHAREWARE PROGRAM PART OF YOUR REGULAR REPERTOIRE OF SOFTWARE YOU'RE SUPPOSED TO PAY FOR IT PAYING FOR SHAREWARE NOT ONLY IS THE RIGHT THING TO DO IT'S IN THE SELFINTEREST OF COMPUTER USERS IT ENCOURAGES INNOVATION AND HELPS MAINTAIN A BROAD BASE OF PROGRAMMING TALENT THAT CAN GIVE RISE TO GREAT PRODUCTS THE BIG COMPANIES OVERLOOK PROCOMM PLUS A COMMUNICATIONS PACKAGE AND KID PIX A CHILDREN'S ART PROGRAM BOTH BEGAN AS SHAREWARE BUT FOUND BIG RETAIL AUDIENCES MANY PEOPLE THINK SHAREWARE MUST BE INFERIOR TO COMMERCIAL SOFTWARE OR CONSISTS MAINLY OF ODDBALL OR TECHNICAL APPLICATIONS IT'S TRUE THAT THESE PROGRAMS OFTEN HAVE FEWER BELLS AND WHISTLES THAN COMMERCIAL COMPETITORS THE SHAREWARE PRECURSORS OF PROCOMM AND KID PIX WHICH CAN STILL BE FOUND HAVE FEWER FEATURES THAN THE RETAIL VERSIONS BUT I'VE TRIED HUNDREDS OF SHAREWARE PROGRAMS OVER THE YEARS AND OVERALL HAVE FOUND THEM TO BE GOOD PRACTICAL PRODUCTS SOME PEOPLE FEAR SHAREWARE WILL INTRODUCE A VIRUS INTO THEIR PC BUT MANY WELLKNOWN SOURCES OF SHAREWARE SCREEN THE PROGRAMS FOR VIRUSES BEFORE MAKING THEM AVAILABLE THERE ARE THREE MAIN WAYS TO ACQUIRE SHAREWARE EACH ENTAILS SOME UPFRONT COSTS IN ADDITION TO THE SHAREWARE FEES THEMSELVES BUT THEY BUY YOU ACCESS TO A CORNUCOPIA OF SOFTWARE INCLUDING WORD PROCESSORS SPREADSHEETS PERSONALFINANCE PROGRAMS GAMES UTILITIES AND MANY MORE TYPES THAN CAN BE LISTED HERE THE MOST COMMON WAY TO GET SHAREWARE IS BY MODEM THROUGH LOGGING ONTO A LOCAL BULLETIN BOARD OR COMMERCIAL ONLINE SERVICE THAT MAINTAINS LIBRARIES OF SUCH PROGRAMS THE BIG SERVICES ESPECIALLY COMPUSERVE AND AMERICA ONLINE HAVE TENS OF THOUSANDS OF SHAREWARE PROGRAMS FOR IBMCOMPATIBLE AND APPLE'S MACINTOSH COMPUTERS YOU CAN ALSO GET SHAREWARE COLLECTIONS ON DISKS FOR MODEST AMOUNTS FROM EITHER COMPUTER USER GROUPS OR A FEW COMMERCIAL DISTRIBUTION COMPANIES THE THIRD METHOD IS TO BUY ONE OF THE GROWING NUMBER OF BOOKS ABOUT SHAREWARE WHICH OFTEN COME WITH DISKS CONTAINING PROGRAMS THE AUTHOR HAS SELECTED TWO SUCH VOLUMES THAT I LIKE ARE THE WINDOWS SHAREWARE 500 AND THE MAC SHAREWARE 500 BOTH BY VENTANA PRESS CHAPEL HILL NC THE BOOKS COST 40 AND COME WITH FREE MEMBERSHIP AND FREE TIME ON AMERICA ONLINE WHERE ADDITIONAL AND UPDATED PROGRAMS CAN BE FOUND MANY SHAREWARE SUBCATEGORIES HAVE EMERGED MAINLY BASED ON HOW THE AUTHORS GET COMPENSATED I'VE SEEN BEERWARE IN WHICH YOU'RE ASKED TO TOAST THE AUTHOR WITH A BREW AND CHARITYWARE IN WHICH YOU'RE ASKED TO SEND A CHECK TO A DESIGNATED GOOD CAUSE SOME SHAREWARE AUTHORS PRODUCE NAGWARE IN WHICH THE TYPICAL PAYMENTREMINDER NOTICES ARE SO OBNOXIOUS AND INTRUSIVE YOU MIGHT PAY JUST TO AVOID SEEING THEM ONE SHAREWARE PROGRAM I USED WOULD PUT UP A NAG SCREEN AT RANDOM MOMENTS WHILE THE SOFTWARE WAS IN USE REQUIRING USERS TO ACKNOWLEDGE READING THE REMINDER BEFORE THEY COULD RESUME WORK OTHER AUTHORS APPEAL TO THE USER'S CONSCIENCE AND SYMPATHY I RECENTLY CAME UPON THIS APPEAL IN AN IMPRESSIVE MACINTOSH SHAREWARE COLOR DRAWING PROGRAM WRITTEN BY SEAN BERGIN OF COUNTY KERRY IRELAND STUDIOCRAFT WAS WRITTEN BY AN INDIVIDUAL TO BE USED BY INDIVIDUALS I HAVE A WIFE AND TWO YOUNG CHILDREN WHO WOULD I AM SURE BE DELIGHTED IF STUDIOCRAFT TURNED OUT TO BE A SUCCESS THAT SUCCESS DEPENDS ON YOU AND PEOPLE LIKE YOU TRYING IT LIKING IT AND SENDING ME A PALTRY 35 I HAVE SENT PAYMENTS OVER THE YEARS FOR MANY SHAREWARE PROGRAMS I'VE USED HEAVILY BUT WRITING TODAY'S COLUMN HAS PROMPTED ME TO LOOK OVER MY HARD DISK AND IDENTIFY A FEW I NEVER PAID FOR I'LL BE SENDING SEVERAL CHECKS IN COMING DAYS MAYBE YOU SHOULD DO THE SAME 9305270095 930527 OTC FOCUS INTEL'S SURGE BOOSTS INDEX TO 70409 CLOSE TO RECORD HIGH MICROSOFT LEAPS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A STRONG RALLY LED BY A 65 GAIN IN INTEL SHARES POWERED OVERTHECOUNTER STOCKS CLOSE TO A RECORD HIGH THE NASDAQ COMPOSITE INDEX JUMPED 905 OR 13 TO 70409 JUST 068 BELOW ITS RECORD 70885 REACHED IN FEBRUARY ADVANCING ISSUES TOPPED DECLINERS 1466 TO 1207 ON TOTAL VOLUME OF 2934 MILLION SHARES UP FROM TUESDAY'S 2526 MILLION IT'S THE LARGE ISSUES IN THE TECHNOLOGY AND HEALTHCARE AREAS THAT WERE LAGGING THAT ARE NOW MAKING BIG GAINS SAID CLAUDIA MOTT A MARKET STRATEGIST WITH PRUDENTIAL SECURITIES SHE SAID MANY OF THE TECHNOLOGY STOCKS ARE RISING AS A RESULT OF ANALYSTS' INCREASING THEIR EARNINGS FORECASTS ON THE BASIS OF SOLID FIRSTQUARTER PROFIT GAINS INTEL JUMPED 6 3/4 TO 110 1/2 JUST 97 BELOW ITS 52WEEK HIGH OF 121 1/4 MERRILL LYNCH ANALYST THOMAS KURLAK RAISED HIS 1994 EARNINGS ESTIMATE FOR THE SEMICONDUCTOR COMPANY TO 14 A SHARE FROM 1180 TO REFLECT A POTENTIAL INCREASE IN PRODUCTION OF ITS NEW PENTIUM MICROPROCESSORS HE DIDN'T CHANGE HIS 1993 ESTIMATE OF 1070 A SHARE LAST YEAR INTEL EARNED 497 MICROSOFT CLIMBED 4 TO 95 1/4 APPLE COMPUTER ROSE 1 3/8 TO 57 3/4 AND SUN MICROSYSTEMS GAINED 1 3/8 TO 30 5/8 CISCO SYSTEMS JUMPED 2 TO 56 1/4 WERTHEIM SCHRODER INCLUDED CISCO WHEN IT INITIATED COVERAGE OF SEVERAL NETWORKING STOCKS WITH ATTRACTIVE RATINGS DELAYS IN PRESIDENT CLINTON'S HEALTHCARE PLAN HAVE GIVEN MEDICALRELATED STOCKS A CHANCE TO BOUNCE BACK FROM DEPRESSED PRICE LEVELS MS MOTT SAID THE HEALTHCARE REFORM WON'T HAVE AS MUCH BITE AS IT DOES BARK AND INVESTORS ARE BUYING THESE STOCKS WITH GOOD FUNDAMENTALS AT CHEAP VALUATIONS SHE SAID COLUMBIA HOSPITAL ROSE 2 3/8 TO 27 3/4 LINCARE HOLDINGS GAINED 3/4 TO 26 3/4 AND CHIRON CLIMBED 7/8 TO 61 1/2 RISING BOND PRICES BOOSTED THE NASDAQ MARKET WHICH IS CATCHING UP WITH THE DOW JONES INDUSTRIAL AVERAGE TRADERS SAID THE INDUSTRIAL AVERAGE CLIMBED 2353 YESTERDAY TO A RECORD 354016 THERE IS STILL A LOT OF MONEY OUT THERE CHASING STOCKS HIGHER AND HIGHER SAID EE BUZZY GEDULD PRESIDENT OF HERZOG HEINE GEDULD THERE IS A LOT OF SHORT COVERING AND THAT IS TRIGGERING SOME OF THE FRANTIC BUYING SHORT COVERING OCCURS WHEN TRADERS WHO HAD BET ON DECLINING STOCK PRICES ARE FORCED TO PURCHASE SHARES TO COVER THEIR BETS MS MOTT SAID THAT ALTHOUGH IT IS VERY LIKELY THE NASDAQ COMPOSITE INDEX WILL HIT RECORD LEVELS THE OTC MARKET USUALLY JUST SIMMERS DURING THE SUMMER MONTHS THE MARKET CAN REACH A NEW HIGH BY A FEW PERCENTAGE POINTS BUT THAT DOESN'T MEAN A 20 GAIN SHE SAID THE MARKET ISN'T SHOWING A LOT OF STRENGTH ON A BROAD BASIS THE STOCKS WITH GAINS AREN'T BEATING THE DECLINERS BY A BIG AMOUNT CABLE AND COMMUNICATIONS STOCKS ALSO POSTED GOOD GAINS MCCAW CELLULAR COMMUNICATIONS ROSE 1 1/2 TO 43 LIN BROADCASTING WAS UP 2 TO 95 1/4 AND TELECOMMUNICATIONS JUMPED 1 1/8 TO 22 7/8 BUT NOVELL TUMBLED 2 3/8 TO 29 7/8 PIPER JAFFRAY DOWNGRADED THE STOCK TO ACCUMULATE FROM OUTPERFORM AND SHEARSON LEHMAN BROTHERS REDUCED ITS RATING TO OUTPERFORM FROM BUY LATE TUESDAY AFTERNOON NOVELL POSTED FISCAL SECONDQUARTER EARNINGS OF 26 CENTS A SHARE UP FROM 20 CENTS A SHARE A YEAR EARLIER THE EARNINGS WERE IN LINE WITH WALL STREET'S GENERAL EXPECTATIONS BUT BELOW SHEARSON LEHMAN ANALYST DAVID READERMAN'S ESTIMATE OF 27 CENTS A SHARE HE SAID NOVELL SHOULD HAVE BEATEN STREET EXPECTATIONS AND EXPRESSED CONCERN ABOUT THE COMPANY'S FUTURE REVENUE GROWTH RATE ARGOSY GAMING SURGED 5 1/4 TO 29 THE GAMBLING COMPANY SAID ITS PROPOSAL FOR A RIVER BOAT GAMBLING PROJECT IN RIVERSIDE MO WAS RECOMMENDED BY A CITY STEERING COMMITTEE THE RECOMMENDATION WILL GO TO THE RIVERSIDE CITY COUNCIL WHICH IS EXPECTED TO CONVENE IN THE NEXT 10 DAYS ARGOSY SAID DONALDSON LUFKIN & JENRETTE UPGRADED ITS RATING OF THE STOCK TO BUY FROM MODERATELY ATTRACTIVE SPECTRUM INFORMATION TECHNOLOGIES DROPPED 1 3/8 TO 4 SPECTRUM SAID THE COMPANY AND CERTAIN OF ITS OFFICERS AND DIRECTORS HAVE BEEN NAMED IN CLASS ACTION LAWSUITS INVOLVING CLAIMS UNDER FEDERAL SECURITIES LAWS SPECTRUM SAID IT RECEIVED THREE COMPLAINTS FILED IN US DISTRICT COURT FOR THE EASTERN DISTRICT OF NEW YORK AND SAID IT HAS LEARNED THAT SEVERAL OTHER COMPLAINTS ALSO HAVE BEEN FILED SPECTRUM DENIES ANY WRONGDOING AND INTENDS TO VIGOROUSLY DEFEND THE LAWSUITS LAST WEEK THE STOCK FELL SHARPLY FROM A HIGH OF 13 1/8 ON CONCERN THAT THE ACTUAL VALUE OF A ROYALTY AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH IS MUCH LESS THAN SPECTRUM HAD INDICATED 9305270093 930527 MARKETING & MEDIA ADVERTISING AMMIRATI DROPS ITS BID TO DRIVE AUDI ACCOUNT FUELING RUMORS BY LAURA BIRD WHEN AD AGENCY AMMIRATI & PURIS WALKED AWAY FROM AN 18YEAR RELATIONSHIP WITH BMW OF NORTH AMERICA IN OCTOBER THE MOVE MADE ITS MADISON AVENUE RIVALS CHEER NOW AMMIRATI IS MAKING THEM NERVOUS MANY IN THE AD BUSINESS HAD WAITED FOR THE HOT NEW YORK AGENCY TO LAND A NEW CAR ACCOUNT NOTING THAT THE SHOP EVEN HELD ON TO THE 12MEMBER CRACK CREATIVE TEAM THAT HAD HANDLED BMW YESTERDAY AMMIRATI ABRUPTLY DROPPED OUT AS ONE OF THREE FINAL CONTENDERS FOR ANOTHER COVETED AUTO CLIENT THE 30 MILLION AUDI ACCOUNT THE MOVE IMMEDIATELY SET OFF A BARRAGE OF INDUSTRY SPECULATION THAT AMMIRATI HAS SET IT SIGHTS ON BIGGER MORE DESIRABLE AUTOMOBILE CLIENTS TWO WHISPERED SUSPECTS MERCEDES AND CADILLAC AND WHILE AMMIRATI IS QUIETLY BIDING ITS TIME AND INSISTS IT BACKED OUT OF THE AUDI REVIEW SIMPLY BECAUSE OF NEW AND CHALLENGING ASSIGNMENTS FROM EXISTING CLIENTS INCLUDING MASTERCARD INTERNATIONAL RIVALS ARE WATCHING CLOSELY TO SEE WHICH OTHER AUTO ACCOUNTS AMMIRATI MIGHT PURSUE MERCEDESBENZ WITH ESTIMATED BILLINGS OF 65 MILLION IN 1992 WAS LANDED BY WPP GROUP'S SCALI MCCABE SLOVES ONLY LAST YEAR IN A HOTLY PITCHED REVIEW SCALI'S FIRST CREATIVE WORK ON THE ACCOUNTINCLUDING THE TAGLINE SACRIFICE NOTHING DREW A LUKEWARM RECEPTION A STRING OF EXECUTIVE DEFECTIONS FROM SCALI FUELED TALK THAT THE AGENCY'S HOLD ON THE ACCOUNT MIGHT BE ROCKY BUT THAT TALK HAS COOLED SOMEWHAT SINCE SCALI HIRED WILLIAM VIESER A FORMER MERCEDES ACCOUNT EXECUTIVE WHEN THE BUSINESS WAS AT MCCAFFREY & MCCALL TO TAKE CONTROL OF THE MERCEDES TEAM MERCEDES HAS DENIED THAT THE ACCOUNT IS IN TROUBLE AT SCALI A MORE STARTLING POSSIBILITY HOWEVER SURFACED YESTERDAY IN CADILLAC THE 70 MILLION PRIZE ACCOUNT OF D'ARCY MASIUS BENTON & BOWLES NEW YORK A CADILLAC SPOKESMAN SAID THE GENERAL MOTORS UNIT ISN'T CURRENTLY INVOLVED IN LOOKING AT OTHER AGENCIES BUT AGENCY EXECUTIVES CAN'T FORGET THAT AMMIRATI & PURIS WAS A STRONG CONTENDER IN GM'S OLDSMOBILE PITCH AND THEY BELIEVE AMMIRATI IS PLOTTING TO GET ITS FOOT IN THE DOOR BUT MARTIN PURIS THE AGENCY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER DISMISSES ALL THE SPECULATION AS ONLY THE RUMOR MILL INSTEAD HE SAYS THE AGENCY HAS BEEN INUNDATED WITH NEW ASSIGNMENTS FROM MASTERCARD COMPAQ COMPUTER RCA AND UNITED PARCEL SERVICE HENCE THE SURPRISE DECISION TO REJECT A ONEINTHREE SHOT AT SIGNING UP AUDI YET MR PURIS'S REASSURANCES DO LITTLE TO SILENCE THE SPECULATION CERTAINLY THE AGENCY MUST HAVE KNOWN ITS OTHER BUSINESS OBLIGATIONS WHEN IT DECIDED TO COMPETE FOR THE AUDI BUSINESS JUST TWO MONTHS AGO THE THINKING ON MADISON AVENUE GOES AND AMMIRATI HAS BEEN KNOWN TO DISMISS ONTARGET SPECULATION BEFORE JUST LAST WEEK AGENCY INSIDERS DISMISSED CONJECTURE THAT AMMIRATI WOULD PULL OUT OF THE AUDI REVIEW ONLY TO DO JUST THAT YESTERDAY TAKING AMMIRATI'S PLACE IN THE AUDI PITCH IS TINY MCKINNEY & SILVER A RALEIGH NC AGENCY WITH ESTIMATED BILLINGS OF 102 MILLION AND BEST KNOWN FOR ITS WORK ON A HANDFUL OF BIG CLIENTS INCLUDING ROYAL CARIBBEAN CRUISES AND PHILIPS LIGHTING MCKINNEY WILL HAVE SOME TOUGH COMPETITION IN THE OTHER TWO CONTENDERS HILL HOLLIDAY CONNORS & COSMOPULOS BOSTON AND CARMICHAEL LYNCH A MINNEAPOLIS SHOP HILL HOLLIDAY INTRODUCED NISSAN MOTOR'S INFINITI LUXURY CAR IN THE US FIVE YEARS AGO ONLY TO LOSE THE ACCOUNT IN AN AGENCY CONSOLIDATION CARMICHAEL LYNCH IS ONLY SLIGHTLY BIGGER THAN MCKINNEY BUT ITS CREATIVE WORK FOR OBSCURE CLIENTS GETS NATIONAL ATTENTION BOB DOHERTY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MCKINNEY SHOP REJECTS THE LABEL OF DARK HORSE EACH ONE OF THE ROUNDS IS A BRAND NEW COMPETITION HE SAID YESTERDAY EVERYONE IS ON THE SAME FOOTING AMMIRATI'S DEPARTURE FROM THE FIELD IS PROBABLY THE BEST NEWS FOR HILL HOLLIDAY WHICH SHUT ITS LOS ANGELES OFFICE AFTER IT LOST INFINITI AND SOON AFTERWARD LOST THE HYATT HOTELS ACCOUNT I LIKE OUR POSITION A LOT SAID FRED BERTINO HILL HOLLIDAY'S NEWLY APPOINTED PRESIDENT WHO RETAINS THE TITLE OF CHIEF CREATIVE OFFICER AUDI EXECUTIVES PERSONALLY INFORMED MR BERTINO AND THE REST OF THE HILL HOLLIDAY TEAM OF AMMIRATI'S DEPARTURE AT A MEETING IN DETROIT YESTERDAY MR BERTINO SAID HILL HOLLIDAY IS STOKED TO GO AFTER THE BUSINESS HAVING ADDED 12 PEOPLE TO ITS CREATIVE STAFF RECENTLY THERE ISN'T A PIECE OF NEW RESEARCH THAT COMES OUT THAT WE DON'T HAVE MEMORIZED HE SAID BUT HE FRETS ANYWAY THAT IT'S HARD TO CREATE CAR ADVERTISING THAT MAKES AN IMPACT THESE DAYS AND AUTOMOTIVE ACCOUNTS ALMOST AREN'T WORTH GETTING HE FIGURES BECAUSE LOSING THEM IS SO DEVASTATING AMMIRATI'S DEPARTURE IN SOME WAYS IS ALSO A DISAPPOINTMENT TO HILL HOLLIDAY MR BERTINO SAYS WE WOULD HAVE LIKED TO HAVE BEATEN THEM FRITO CAMPAIGN PEPSICO'S FRITOLAY SNACK FOOD UNIT IS LAUNCHING ITS FIRST MAJOR MARKETING PUSH FOR THE FRITO CORN CHIP BRAND IN A DECADE ITS NEW AD CAMPAIGN IS TIED TO A SPONSORSHIP OF COUNTRY SINGER BILLY RAY CYRUS'S SUMMER CONCERT TOUR THE EFFORT FROM THE CHICAGO OFFICE OF OMNICOM GROUP'S DDB NEEDHAM INTRODUCES A NEW TAGLINE I KNOW WHAT I LIKE AND I LIKE FRITOS THE CAMPAIGN INCLUDES A REGIONAL SPOT TO SUPPORT THE TEST OF SCOOPS CORN CHIPS WHICH ARE DESIGNED TO SHOVEL DIPS AND SALSA KMART TIE RENEWED CBS SAID IT IS JOINING WITH KMART TO PROMOTE ITS PRIMETIME PROGRAMMING THIS FALL THE TWOWEEK SWEEPSTAKES PROMOTION MARKS THE FOURTH TIME CBS AND KMART HAVE JOINED FORCES LAST YEAR CBS HOOKED UP WITH NABISCO FOR THE FALL SEASON PUSH 9305270092 930527 LEISURE & ARTS THE GALLERY A BIG FUSS OVER THE LITTLE CORPORAL BY AMY GAMERMAN MEMPHIS TENN THE HOME OF THE KING IS PLAYING HOST TO AN EMPEROR AND IT'S HARD TO ESCAPE HIM NAPOLEON AN ELECTRONIC SIGN AT THE AIRPORT SHOUTS AT YOU AS YOU TRUNDLE TOWARD THE BAGGAGECLAIM AREA EXCLUSIVELY IN MEMPHIS AS YOU SPEED DOWN THE HIGHWAY THERE'S THE LITTLE CORPORAL HIMSELF PEERING AT YOU FROM BELOW HIS TRADEMARK TRICORN ON A BILLBOARD SIGN THAT INVITES YOU TO SEE WHAT NAPOLEON COLLECTED BESIDE COUNTRIES NAPOLEON BANNERS HANG FROM EVERY LAMP POST NAPOLEON DISPLAYS FILL VACANT STOREFRONTS ON THE CITY'S SHABBY MAIN STREET AND AT THE PEABODY HOTEL AN EIGHTFOOTTALL BONAPARTE BUST SCULPTED FROM MORE THAN 500 POUNDS OF FRENCH WHITE CHOCOLATE SURVEYS THE LOBBY NOT FAR AWAY AT THE COOK CONVENTION CENTER IS THE CAUSE OF ALL THE HOOPLA NAPOLEON AN EXHIBITION OF ART FURNITURE CLOTHING BATTLE GEAR AND JEWELRY ON VIEW THROUGH SEPT 22 IT'S THE LATEST IN THE WONDERS BLOCKBUSTER SERIES A CITYRUN CITYFUNDED CITYPROFITING PROGRAM THAT HAS STAGED PREVIOUS SHOWS ON CATHERINE THE GREAT AND THE OTTOMAN SULTANS MEMPHIS HIT ON THESE CULTURE FESTS AS A WAY OF ATTRACTING TOURIST DOLLARS BACK IN 1987 WITH RAMESSES THE GREAT AN EGYPTOEXTRAVAGANZA THAT REAPED AN ESTIMATED 80 MILLION FOR THE CITY'S PRIVATE SECTOR THE CITY GOVERNMENT ITSELF DOESN'T RECEIVE MONEY FROM WONDERS SHOWS HAVING MADE OUT LIKE BANDITS EVERYONE CLAMORED FOR MORE ART EVENTS THE HOTEL INDUSTRY THE RESTAURANT INDUSTRY THE TOURISM INDUSTRY CAME KNOCKING AND SAID WHY CAN'T WE HAVE ONE OF THESE MORE OFTEN' SAYS JACK KYLE WONDERS COMMUNICATIONS DIRECTOR OUR MISSION STATEMENT IS TO PRESENT ON AN ANNUAL BASIS A WORLDCLASS CULTURAL EVENT WITH A BUDGET OF 91 MILLION25 MILLION OF IT FROM THE CITY NAPOLEON IS THE MOST EXPENSIVE SHOW SO FAR WORKING WITH THE FRENCH MUSEUM SYSTEM THE SERIES INVITED BERNARD CHEVALLIER DIRECTOR OF THE CHATEAU DE MALMAISON TO CURATE THE SHOW AND WRITE THE CATALOG HE COORDINATED THE LOANS OF 175 ARTWORKS MANY OF WHICH HAVE NEVER BEEN SHOWN IN THIS COUNTRY BEFORE FROM HIS OWN MUSEUM IN NAPOLEON'S OLD HOME AND NEARLY 50 OTHERS AMONG THEM THE LOUVRE THE VATICAN AND THE SMITHSONIAN IN APPRECIATION WONDERS HAS UNDERWRITTEN THE 200000 RESTORATION OF MALMAISON'S COUNCIL CHAMBER WITH MR CHEVALLIER TAKING CARE OF THE ARTSY STUFF THE WONDERS FOLKS GOT DOWN TO WHAT THEY DO BEST PROMOTION MONTHS BEFORE THE SHOW OPENED JOURNALISTS FROM LOCAL AND NATIONAL PUBLICATIONS WERE FLOWN TO FRANCE COURTESY OF NAPOLEON SPONSOR DELTA AIR LINES TO VISIT THE LENDING INSTITUTIONS ABOUT 100 VOLUNTEER SPEAKERS WERE TRAINED TO GO OUT AND PITCH THE SHOW TO CLUBS AND ORGANIZATIONS WITHIN A 300MILE RADIUS AND MIDSOUTH BUSINESSES LIKE THE KROGER CO SUPERMARKET CHAIN GOT IN ON THE ACT NOT ONLY DID IT BECOME A MAJOR SPONSOR IT PLASTERED ADS FOR THE SHOW ON ITS GROCERY BAGS AND AT CHECKOUT LINES THE HYPE REACHED A FEVER PITCH WHEN THE SHOW OPENED LAST MONTH FOR THE OPENING CEREMONY WONDERS FLEW IN THE BATTERIEFANFARE OF THE FRENCH GARDE REPUBLICAINE WHICH JOINED THE US MARINE DRUM & BUGLE CORPS AND ARMY HERALD TRUMPETS IN SALUTING A LIFELIKE VINYL REPLICA OF THE LITTLE CORPORAL THE WHOLE THING WAS BROADCAST LIVE ON LOCAL TELEVISION MR KYLE INSISTS THAT IT DID NOT COME ACROSS IN A PT BARNUM FASHION IT WAS PRESENTED WITH DIGNITY I PAID MY RESPECTS TO THE EMPEROR LAST WEEK CATCHING A RIDE ON ONE OF THE CITY'S CHARMING RESTORED TROLLEY CARS TO THE CAVERNOUS COOK CENTER AFTER BUYING MY 11 TICKET 6 FOR KIDS I PROCEEDED THROUGH A PAIR OF METAL DETECTORS TO A THEATER WHERE A SHORT FILM GIVES YOU THE SKINNY ON THE MAN OF THE HOUR COMPLETE WITH VOICEOVERS BY A NAPOLEON WITH A STAGEY FRENCH ACCENT I WAS THEN MET BY A BATTERY OF ELDERLY DOCENTS IN MOIRE SASHES BRANDISHING HEADSETS STICK YOUR RIGHT HAND THROUGH AND PUT IT OVER YOUR HEAD ONE COMMANDED PLEASE CHECK THAT YOUR TAPE IS WORKING ASKED ANOTHER AS I PASSED INTO THE FIRST ROOM OF THE EXHIBITION A GALLERY FILLED WITH MARBLE BUSTS OF NAPOLEON AND OTHER BONAPARTES ON FAUXMARBLE PEDESTALS LIKE SO MANY MOUTONS MOST VISITORS OBEY THEIR AUDIO TOUR GUIDE PATRICIA NEAL AND HEAD STRAIGHT FOR THE BUST OF NAPOLEON'S MOTHER LETIZIA LOOK AT THAT STUBBORN CHIN AND THAT STIFF NECK SAYS MS NEAL WHO IS SOON JOINED BY NAPOLEON AND JOSEPHINE HAHA EEZ FUNNY BONAPARTE TITTERS JOSEPHINE AS YOU STARE AT THE FADED SILK SULTAN OR WEDDING BASKET PACKED WITH JEWELRY THAT HE GAVE HER THE ROOM DEVOTED TO THE YOUNG NAPOLEON FEATURES HIS CRADLE AND HIS WEDDING CERTIFICATE ALONGSIDE ANTOINEJEAN GROS'S GENERAL NAPOLEON BONAPARTE AT THE BRIDGE OF ARCOLE AND A SILVER GILTENCRUSTED MAMELUKE SADDLE A TROPHY FROM THE EYGPTIAN CAMPAIGN THIS HODGEPODGE OF ART AND ARTIFACTS IS TYPICAL OF THE SHOW'S EVERYTHING NAPOLEON APPROACH BEWILDERINGLY NEITHER THE PLACARDS NOR THE ADULT AUDIO TOUR TELL YOU MUCH ABOUT THE OBJECTS THE SHOW'S ORGANIZERS WENT TO SUCH TROUBLE TO ACQUIRE THE CATALOG DOES A BETTER JOB OF FILLING IN THE GAPS FOR EXAMPLE THE PLACARD ACCOMPANYING FRANCOISPASCAL GERARD'S PORTRAIT OF THE SELFCROWNED EMPEROR WHICH THE AUDIO TOUR IDENTIFIES AS ONE OF THE MOST IMPORTANT PAINTINGS IN THIS EXHIBIT JUST OFFERS TIDBITS ABOUT HIS OUTFIT IMAGINE THE COST OF THAT SUMPTUOUS VELVET AND ERMINE MANTLE MS NEAL CHIMES IN VISITORS WOULD DO BETTER TO TRY THE CHILDREN'S AUDIO TOUR WHICH IS FAR MORE INFORMATIVE AND FULL OF JUICY ANECDOTES THE ONLY WAY GROS COULD MAKE NAPOLEON SIT STILL FOR HIS PORTRAIT KIDDIES LEARN WAS BY HAVING HIM POSE ON JOSEPHINE'S LAP FORTUNATELY MOST OF THESE OBJECTS ARE ENTRANCING ENOUGH TO MAKE HEADSETS UNNECESSARY ALTHOUGH IN TWO VISITS I DIDN'T SEE ANYONE WITHOUT ONE JACQUESLOUIS DAVID'S MAGNIFICENT PORTRAIT OF NAPOLEON CROSSING THE ALPS IS DISPLAYED FOR THE FIRST TIME IN THIS COUNTRY ALONG WITH THE BLACK HAT NAPOLEON WORE AT THE BATTLE OF MARENGO THERE IS A FULLSCALE REPLICA OF MALMAISON'S TENTSHAPED COUNCIL CHAMBER WHERE NAPOLEON MET TO HASH OUT MATTERS LIKE THE LOUISIANA PURCHASE THE ORIGINAL DOCUMENTS OF THE AGREEMENT ARE ON VIEW NEARBY AND HIS WATERSTAINED CAMPAIGN TENT HAS BEEN SET UP COMPLETE WITH HIS FAMOUS FOLDING IRON BEDSTEAD GALLERIES FILLED WITH BATTLESCENE PAINTINGS MILITARY UNIFORMS AND RELICS SUCH AS NAPOLEON'S CAMPAIGNREADY COACH GIVE WAY TO THE EXHIBITS ON COURT LIFE AND THE ARTS THERE ARE SEVERAL PORTRAITS OF JOSEPHINE PRESENTED HERE AS A CHIC CLOTHES HORSE WHO CONSTANTLY OVERSPENT HER ALLOWANCE AND KEPT NAPOLEON WAITING WHILE SHE HAD HER HAIR DONE THREE TIMES A DAY BUT SHE DID HAVE EXCELLENT TASTE AS YOU LEARN IN THE GALLERY DEVOTED TO THE DECORATIVE ARTS ONE OF THE SHOW'S BEST IT IS FILLED WITH SUMPTUOUS EMBROIDERED SILKS GOBELIN TAPESTRIES AND SEVRES PLATES AND VASES COMMISSIONED BY THE EMPEROR AND IT WOULD BE TOUGH TO SURPASS THE SHEER GLITTER OF THE TREASURE ROOM WHERE JOSEPHINE'S DIADEMS OF DIAMONDS AND GEMSTUDDED CAMEOS TWINKLE OPPOSITE A JEWELER'S COPY OF THE EIGHTPIECE WEDDING PARURE THAT NAPOLEON GAVE HIS SECOND WIFE MARIELOUISE WHITE SAPPHIRES AND GARNETS SUB FOR HER DIAMONDS AND RUBIES BUT THE MOST POWERFUL ARTIFACT IN THE ENTIRE SHOW ISN'T A GLITTERING TIARA OR PRICELESS WORK OF ART IT'S A LITTLE MAP OF SAINT HELENA NAPOLEON'S ISLAND PRISON AND FINAL PLACE OF EXILE IN THE LAST GALLERY IN RED PENCIL THE EXILED EXEMPEROR MARKED A CIRCUITOUS ROUTE ACROSS THE TINY ISLAND A MORE POIGNANT ECHO OF HIS PAST EPIC CAMPAIGNS IS HARD TO IMAGINE TAKE A GOOD LOOK BECAUSE ONCE YOU LEAVE THE GALLERY YOU WON'T BE READMITTED EVEN IF IT'S ONLY TO RUSH DOWN TO LE BISTRO NAPOLEON TO GULP DOWN AN ELBABURGER OR A JOSEPHINE'S SALAD TOPPED OFF BY WHAT ELSE A NAPOLEON YOU CAN ONLY GO THROUGH ONCE A DOCENT EXPLAINED BUT YOU CAN GO THROUGH THE GIFT SHOP TWICE GIVEN THE HIGH ADMISSION PRICE THAT SEEMS KIND OF CHINTZY BUT THE GUIDE HAD A POINT IT WOULD TAKE TWO VISITS TO DO JUSTICE TO THE ENGORGED GIFT SHOP WITH ITS 559 NAPOLEON BUSTS NAPOLEONINABOX TOYS AND NAPOLEON ZYDECO STYLE PEPPER SAUCE YOU CAN VISIT IT FOR FREE 9305270091 930527 CHRYSLER OFFICIALS SOLD MORE THAN 420000 SHARES LAST MONTH HIGHLAND PARK MICH TWELVE OF CHRYSLER CORP'S TOP EXECUTIVES AND TWO DIRECTORS EXERCISED OPTIONS ON ABOUT 650000 SHARES OF THE AUTO MAKER'S STOCK LAST MONTH AND SOLD SLIGHTLY MORE THAN 420000 OF THOSE SHARES FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THE GROUP OF EXECUTIVES WHICH ALSO INCLUDED GARY VALADE WHO SUCCEEDED MR YORK AS CHIEF FINANCIAL OFFICER SEVEN VICE PRESIDENTS AND THE CONTROLLER CASHED IN ON CHRYSLER'S SURGE FROM 11 IN 1991 TO OVER 40 THIS YEAR BY SELLING ABOUT 420000 OF THE SHARES PURCHASED ACCORDING TO SEC FILINGS TRACKED BY CDA INVESTNET A FORT LAUDERDALE FLA CONCERN THAT TRACKS INSIDER SELLING BECAUSE THE PROFITTAKING BY THE TOP EXECUTIVES WAS EXPECTED THE SELLOFF HAD LITTLE EFFECT ON CHRYSLER'S STOCK IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CHRYSLER CLOSED AT 4450 A SHARE UP 1125 APRIL'S STOCK SALE WAS FIRST REPORTED YESTERDAY IN THE DETROIT FREE PRESS IN THE CASE OF AUTO COMPANIES COMING OUT OF A DOWNTURN I WOULD CONSIDER THIS NORMAL SAID MICHAEL P WARD AN ANALYST AT KIDDER PEABODY AND CO BOB GABELE PRESIDENT OF CDA INVESTNET SAID THE EXECUTIVES WHO SOLD STOCK IN APRIL SEEMED MORE OPTIMISTIC ABOUT THE COMPANY THAN A SIMILAR GROUP WHO SOLD OFF LAST FALL IN AN OCTOBER WAVE OF INSIDER SALES EXECUTIVES SOLD OFF ALL THE STOCKS THEY ACQUIRED THROUGH OPTIONS AS WELL AS ADDITIONAL HOLDINGS BUT LAST MONTH THEY SOLD ONLY A PORTION OF THE OPTIONED SHARES BOARD MEMBERS WILLIAM G MILLIKEN THE FORMER GOVERNOR OF MICHIGAN AND JOSEPH E ANTONINI THE CHAIRMAN AND CHIEF EXECUTIVE OF KMART CORP ALSO EXERCISED LESS THAN COMBINED TOTAL OF 5000 SHARES 9305270090 930527 INCREASE IS PROPOSED IN SIZE OF LOANS MADE WITHOUT APPRAISALS WASHINGTON REGULATORS PROPOSED TO BOOST THE SIZE OF LOANS THAT BANKS CAN MAKE WITHOUT REQUIRING AN APPRAISAL A MOVE DESIGNED TO SPUR LOANS TO SMALL BUSINESSES FOLLOWING THROUGH ON A SMALLBUSINESS LENDING INITIATIVE THAT PRESIDENT CLINTON ANNOUNCED IN MARCH THE REGULATORS SAID THEY PLAN TO INCREASE TO 250000 FROM 100000 THE SIZE OF A LOAN THAT CAN BE MADE WITHOUT AN APPRAISAL MOST HOMEBUYERS WILL STILL NEED TO GET APPRAISALS HOWEVER BECAUSE THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND THE FEDERAL HOME LOAN MORTGAGE CORP WHICH PURCHASE MORTGAGES FROM LENDERS WON'T BUY MORTGAGES UNLESS THE COLLATERAL HAS BEEN APPRAISED THE REGULATORS THE COMPTROLLER OF THE CURRENCY THE FEDERAL DEPOSIT INSURANCE CORP THE FEDERAL RESERVE BOARD AND THE OFFICE OF THRIFT SUPERVISION ALSO PROPOSED THAT APPRAISALS WON'T BE NECESSARY ON BUSINESS LOANS UNDER 1 MILLION SECURED BY REAL ESTATE IF THE REALESTATE COLLATERAL ISN'T THE PRIMARY SOURCE OF REPAYMENT MANY SMALL BUSINESSES COMPLAIN THAT CURRENT APPRAISAL REQUIREMENTS INCREASE THE EXPENSE AND TIME IT TAKES TO GET A LOAN A FED OFFICIAL SAID AN APPRAISAL REQUIRED FOR A 250000 COMMERCIAL LOAN CAN COST BETWEEN 1500 AND 3500 BUT SOME CONSUMER GROUPS AS WELL AS THE APPRAISAL INDUSTRY WILL OPPOSE THE CHANGES AS A MOVE AWAY FROM SOUND LENDING PRACTICES CHRIS LEWIS OF THE CONSUMER FEDERATION OF AMERICA SAID RELAXED APPRAISAL REQUIREMENTS COULD HURT SOME BORROWERS IN THE INNER CITY WHERE BANKS MAY UNDERESTIMATE PROPERTY VALUES AND REDUCE THE AMOUNT THEY ARE WILLING TO LEND THE PUBLIC HAS 45 DAYS TO COMMENT ON THE PROPOSAL TWO MEMBERS OF THE FEDERAL RESERVE BOARD ARE ASKING FOR COMMENTS ON WHETHER THE THRESHOLD FOR REQUIRING APPRAISALS SHOULD BE SET AT 500000 RATHER THAN LOANS OF 250000 9305270089 930526 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9305270088 930527 CREDIT RATINGS PETROCANADA CALGARY ALBERTA STANDARD & POOR'S CORP RAISED ITS RATING ON 600 MILLION OF THIS COMPANY'S LONGTERM DEBT TO TRIPLEB FROM TRIPLEBMINUS REFLECTING THE ENERGY CONCERN'S IMPROVED CASH FLOW STRONGERTHANEXPECTED OPERATING EARNINGS AND STRENGTHENED CAPITAL STRUCTURE S&P ALSO SAID IT IS CONSIDERING RAISING ITS A3 RATING ON PETROCANADA'S COMMERCIAL PAPER S&P PETROCANADA'S RESTRUCTURING MEASURES OVER THE PAST TWO YEARS HAVE RESULTED IN A LOWER COST BASE ALTHOUGH FUNDAMENTALS OF THE CANADIAN MARKET ARE NOT EXPECTED TO IMPROVE SIGNIFICANTLY OVER THE NEXT TWO YEARS S&P SAID PETROCANADA SHOULD HAVE MARGINAL IMPROVEMENTS IN OPERATING EARNINGS THIS YEAR AND NEXT YEAR 9305270087 930527 LETTERS TO THE EDITOR RADICAL BUT NICE DONALD EASTMAN'S THE NEW SEGREGATION EDITORIAL PAGE MAY 5 STRIKES ME AS TOO PARANOID I HAVE TO ADMIT THAT WHEN I FIRST GOT TO COLLEGE EIGHT YEARS AGO I DIDN'T AT FIRST DISTINGUISH BETWEEN BLACK STUDENT GROUPS' DISRUPTIVE OPINIONS AND ACTIONS AND THE INTERPERSONAL BEHAVIOR OF THE MEMBERS THEMSELVES WHILE THE GROUPS SPOKE IN RADICAL FORCEFUL LANGUAGE THE MEMBERS OF THESE GROUPS WERE EXCEPTIONALLY FRIENDLY AND PLEASANT IN DISCUSSION MR EASTMAN SHOULD SPEND HIS TIME TALKING AND LEARNING ABOUT PEOPLE'S DIFFERENCES AND NOT ACCUSING THE INSTITUTIONS THEY ESTABLISH AS CONTRIBUTING TO SEGREGATION BLACK FRATERNITIES SORORITIES CLUBS AND PAGEANTS CELEBRATE DIVERSITY NOT SEGREGATION AND UNTIL PEOPLE LIKE MR EASTMAN UNDERSTAND THIS SUBTLE DIFFERENCE THE RACIAL BATTLEFIELDS HE SPEAKS OF WILL ONLY BECOME MORE INTENSE 9305270086 930527 LETTERS TO THE EDITOR VOLUNTEER BLOOD DONORS TERESE RAPHAEL JUSTIFIABLY QUESTIONS WHETHER SAFETY SOCIAL OR PROTECTIONIST/ECONOMIC CONSIDERATIONS ARE BEHIND THE EUROPEAN COMMUNITY'S DRIVE TO HAVE AN ALLVOLUNTEER DONOR PLASMA SUPPLY THE DANGERS OF PLASMA PROTECTIONISM EDITORIAL PAGE MAY 12 BUT SHE IS INCORRECT WHEN SHE ASSERTS THAT NO CONCLUSIVE STUDIES HAVE SHOWN THAT VOLUNTEER DONORS ARE SAFER THAN PAID DONORS SCORES OF SUCH STUDIES LED THE US TO MOVE TO A NEARLY TOTAL VOLUNTEER DONOR BLOOD SUPPLY IN THE 1970S ALTHOUGH THE PLASMA SUPPLY REMAINED LARGELY COMMERCIAL IF STERILIZATION PROCEDURES IMPLEMENTED AFTER THOUSANDS OF PEOPLE WITH HEMOPHILIA WERE INFECTED WITH HIV FROM CONTAMINATED PLASMA HAD NOT RENDERED PLASMA PRODUCTS VIRTUALLY DISEASEFREE DOUBTLESS TODAY'S US PLASMA SUPPLY WOULD ALSO COME FROM VOLUNTEERS 9305270085 930527 BUSINESS BRIEF SPEC'S MUSIC INC COMPANY WILL POST DEFICIT FOR QUARTER CITES CHARGE SPEC'S MUSIC INC SAID IT EXPECTS TO POST A LOSS FOR ITS THIRD QUARTER BECAUSE OF A 16 MILLION CHARGE TO RESTRUCTURE ITS MUSIC STORES YEAREARLIER NET INCOME WAS 2 MILLION OR 38 CENTS A SHARE THE MIAMI COMPANY SAID IT EXPECTS TO REPORT A PROFIT FOR THE YEAR WHICH ENDS JULY 31 THE RESTRUCTURING INCLUDES A 23 MILLION EXPANSION AND STORERENOVATION PROGRAM THE COMPANY WILL ADD AS MANY AS 50 STORES AND REMODEL 30 OTHERS IT WILL ALSO CONSIDER ACQUIRING NEW STORES THE COMPANY RECENTLY CLOSED FOUR STORES AND WON'T RENEW LEASES ON SEVERAL OTHERS IT WILL ALSO ELIMINATE CERTAIN VIDEO DEPARTMENTS THE SPECIALTY MUSIC RETAILER OPERATES 60 STORES IN FLORIDA AND PUERTO RICO 9305270084 930527 US SUES RAYCHEM SAYING JOB DIDN'T MEET SPECIFICATIONS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL GOVERNMENT IS SEEKING UNSPECIFIED DAMAGES FROM RAYCHEM CORP A DEFENSE CONTRACTOR FOR FRAUD AND UNJUST ENRICHMENT IN ALLEGEDLY MISREPRESENTING SPECIAL TUBING USED IN SOME OF THE MILITARY'S BOMBERS AND TANKS THE SUIT FILED IN DECEMBER BY THE US ATTORNEY'S OFFICE IN FEDERAL COURT IN AUSTIN TEXAS CAME TO LIGHT THIS WEEK WHEN RAYCHEM AND FEDERAL OFFICIALS CONFIRMED THE ACTION OFFICIALS OF RAYCHEM A MENLO PARK CALIF MATERIALS SCIENCE COMPANY DENIED ANY WRONGDOING THE CASE COULD GO TO TRIAL AS EARLY AS AUGUST IN TEXAS WHERE RAYCHEM HAD CONDUCTED BUSINESS ACCORDING TO THE GOVERNMENT'S CASE MILITARY SPECIFICATIONS REQUIRED RAYCHEM TO USE A CHEMICAL COMPOUND KNOWN GENERICALLY AS NEOPRENE IN SPECIAL TUBING DESIGNED TO WRAP AROUND ELECTRICAL WIRING IN THE BOMBERS AND TANKS TO PROTECT IT FROM THE ELEMENTS THE TUBING SHRINKS WHEN HEATED FORMING A TIGHT WRAP AROUND THE WIRING SO IT WON'T BE DAMAGED FROM SUCH THINGS AS SPILLED AIRCRAFT FUEL OR OIL WHILE RAYCHEM PROVIDED THE REQUIRED NEOPRENE TUBING FOR THE DEPARTMENT OF DEFENSE FROM 1986 TO 1989 THE GOVERNMENT CONTENDS IN A SUIT THAT THE COMPANY SUBSTITUTED OTHER POLYMERS FOR NEOPRENE WITHOUT NOTIFYING THE MILITARY THEN ACCORDING TO THE SUIT RAYCHEM CONTINUED TO SELL THE NONNEOPRENE TUBING UNTIL 1991 WHEN THE COMPANY ISSUED A BULLETIN ANNOUNCING THAT IT HAD REFORMULATED THE MATERIAL USED IN THE TUBING THOUGH RAYCHEM OFFICIALS HAVE MAINTAINED THAT THE NEW TUBING WORKED AS WELL AS THE OLD ONE FEDERAL OFFICIALS CONTEND IN THE SUIT THEY SHOULD HAVE BEEN NOTIFIED IN ANY EVENT AND THAT THE COMPANY UNJUSTLY ENRICHED ITSELF BY CONTINUING TO SELL A PRODUCT THAT DIDN'T MEET MILITARY SPECIFICATIONS OUR PRIMARY CONTENTION IS THAT WHATEVER RAYCHEM DID IT WASN'T DISCLOSED TO THE GOVERNMENT SAID ERNEST C GARCIA AN ASSISTANT US ATTORNEY RAYCHEM OFFICIALS ARGUE HOWEVER THAT THE GOVERNMENT'S SPECIFICATIONS DID NOT NECESSARILY REQUIRE JUST ONE POLYMER LIKE NEOPRENE BUT THAT THE TUBING COULD HAVE BEEN MADE FROM A NUMBER OF DIFFERENT POLYMERS OUR CONTENTION IS THAT THE GOVERNMENT'S POSITION IS WRONG BOTH FACTUALLY AND LEGALLY A RAYCHEM SPOKESMAN SAID THE BOTTOM LINE IS THE PRODUCT IS PERFORMING EXACTLY AS REQUIRED SEPARATELY RAYCHEM DISCLOSED IT HAD DISCOVERED LAST YEAR THAT CERTAIN OF ITS MTC ELECTRICAL CONNECTOR PRODUCTS SOLD TO CONTRACTORS FOR THE GOVERNMENT DO NOT MEET CERTAIN REQUIREMENTS IN AN INTERNAL INQUIRY THE COMPANY FOUND THE DEFICIENCIES IN ITS MTC 50 AND MTC SOCKET BOXMOUNTS WHICH ARE USED IN AEROSPACE AND OTHER ELECTRICAL APPLICATIONS LIKE THE TUBING THOUGH MR WYLIE SAID THE PRODUCTS WERE PERFORMING WELL AND THAT CUSTOMERS HAVE BEEN ADVISED AS THE COMPANY WORKS TO CORRECT THE PROBLEM 9305270083 930527 BUSINESS BRIEF DRS INDUSTRIES INC CONCERN SECURES 3 MILLION TO END UNIT'S BANKRUPTCY DRS INDUSTRIES INC SAID IT SECURED THE 3 MILLION NECESSARY TO COMPLETE THE CHAPTER 11 REORGANIZATION OF ITS GENERAL TEXTILES SUBSIDIARY THE APPAREL RETAILER AND DISTRIBUTION COMPANY SAID IT RAISED THE 3 MILLION THROUGH A PRIVATE PLACEMENT OF 15 NOTES AND WARRANTS OVER THE LAST TWO WEEKS DRS SAID IT EXPECTS THE REORGANIZATION TO BE COMPLETED BY TOMORROW LAST DECEMBER DRS ACQUIRED GENERAL TEXTILES WHICH HAD BEEN OPERATING UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE SINCE LAST JULY GENERAL TEXTILES OPERATES 79 FAMILY BARGAIN CENTER OFFPRICE APPAREL STORES IN CALIFORNIA AND FOUR OTHER WESTERN STATES 9305270082 930527 MARKETING BRIEF NOTED WHO'S NEWS THREE EXECUTIVES OF DUN & BRADSTREET CORP'S TELEVISION RATING SERVICES UNIT NIELSEN MEDIA RESEARCH WERE APPOINTED TO NEW CORPORATE SENIOR VICE PRESIDENT POSITIONS DAVID HARKNESS 49 SENIOR VICE PRESIDENT AND DIRECTOR OF MARKETING FOR NIELSEN'S SYNDICATION CABLE AND HOMEVIDEO BUSINESSES WAS NAMED SENIOR VICE PRESIDENT PLANNING AND DEVELOPMENT L RANDALL YATES 42 VICE PRESIDENT OF MARKETING WAS NAMED SENIOR VICE PRESIDENT NATIONAL SERVICES AND ROBERT J TARAGAN 36 DIRECTOR OF MARKETING FOR NIELSEN STATION INDEX WAS NAMED SENIOR VICE PRESIDENT LOCAL SERVICES 9305270081 930527 LEISURE & ARTS BOOKSHELF ROLES AND RELATIONSHIPS BY MERLE RUGIN FINISHED JUST AS EASTERN EUROPE WAS GETTING READY TO SHUCK OFF COMMUNIST RULE FRANCESCA DURANTI'S GENTLY SATIRIC NOVEL PERSONAL EFFECTS TRANSLATED FROM THE ITALIAN BY STEPHEN SARTARELLI RANDOM HOUSE 152 PAGES 19 PRESCIENTLY DESCRIBES THE MENTALITY OF A POSTCOLD WAR WORLD IN WHICH COMMUNISM IS NO LONGER A REAL THREAT AND THE SPIRITUAL SHORTCOMINGS OF A CONSUMERIST CULTURE ARE ALREADY CREATING AMBIVALENCE MS DURANTI'S NAIVE HEROINE VALENTINA BARBIERI IS A LOST SOUL IN MORE WAYS THAN ONE AFTER 10 YEARS OF MARRIAGE HER HUSBAND RICCARDO A WELLKNOWN AUTHOR OF A POPULAR SERIES OF SECULAR IRREVERENT BIOGRAPHIES OF THE CHURCH FATHERS HAS LEFT HER FOR SOMEONE MORE GLAMOROUS WHILE VISITING HER UNHELPFULLY CHEERFUL NEW AGE MOTHER VALENTINA WHO USED TO BE RICCARDO'S UNPAID RESEARCHER AND WHO NOW NEEDS A JOB PICKS UP THE ANSWER A NOVEL BY A WORLDFAMOUS EASTERN EUROPEAN AUTHOR MILOS JARCO ARMED WITH SHREDS OF SLAVIC FROM HER COLLEGE MAJOR VALENTINA WANGLES AN ASSIGNMENT FROM A MAGAZINE TO INTERVIEW THE GREAT DISSENTER ARRIVING AT AN UNNAMED EASTERN EUROPEAN CITY THAT SEEMS A BIT LIKE BUDAPEST VALENTINA FINDS HER HOTEL ROOM BUGGED AND THE FRIENDLY BUT BABBLING LITERATI AT THE LOCAL WRITERS' UNION NO HELP WHATSOEVER IN LOCATING THE FAMOUS JARCO STILL SEARCHING FOR HER ELUSIVE QUARRY VALENTINA MEETS ANTE RADEK A BOYISHLY HANDSOME POET WHOSE FANATICAL DEVOTION TO THE PARTY AND ASCETIC SCORN FOR CAPITALIST LUXURY GIVE HIM THE AIR OF A MAD MEDIEVAL MONK HE IS AT ANY RATE A REFRESHING CONTRAST TO HER ACQUISITIVE STATUSCONSCIOUS EXHUSBAND IN MS DURANTI'S DEFT TELLING VALENTINA'S INFATUATION WITH RADEK AND HIS NOBLE FUNDAMENTALISM ADROITLY EPITOMIZES A PERPETUAL HUMAN SUSCEPTIBILITY NOT ONLY TO MARXIST PIPE DREAMS BUT TO ANY IDEOLOGY PROMISING RELIEF FROM THE BURDENS OF FREEDOM HIS RANTS ON ORDINARY HUMAN SELFISHNESS WOULD SOUND JUST AS NATURAL ON THE LIPS OF A CULT LEADER MS DURANTI WHO WON PRAISE FOR HER TWO PREVIOUS NOVELS HAPPY ENDING AND THE HOUSE ON MOON LAKE IS AN ELEGANT AND ENGAGING WRITER WHO TREATS SERIOUS QUESTIONS WITH WIT AND GRACE UNLIKE HER HEROINE'S PRETENTIOUS EX WHO'S EVOLVED A FORMULA FOR PRODUCING DELIBERATELY MYSTIFYING BOOKS HE DESCRIBES AS EASY TO WRITE AND DIFFICULT TO READ MS DURANTI SUCCEEDS AT THE MORE DIFFICULT TASK OF WRITING LUCID INTELLIGENT FICTION THAT IS DECEPTIVELY EASY AND DELIGHTFUL TO READ IN HER SECOND NOVEL THE GIRL WHO TROD ON A LOAF KNOPF 400 PAGES 23 KATHRYN DAVIS THE PRIZEWINNING AUTHOR OF LABRADOR OFFERS ALL THE TRAPPINGS OF PROFUNDITY BIG THEMES AND EPIC LENGTH THE STORY IS NARRATED BY FRANCES THORN A FAILED MUSICIAN AND HUSBANDLESS MOTHER OF TWIN GIRLS WHO WORKS AS A WAITRESS AT AN UPSTATE NEW YORK DINER BUT THE NOVEL'S DOMINANT CHARACTER IS HELLE TEN BRIX A FAMOUS SOMEWHAT DEMENTED DANISHBORN COMPOSER WHO HAS LATCHED ONTO FRANCES AND LEFT HER THE HIGHLY PROBLEMATIC LEGACY OF AN UNFINISHED OPERA LOOSELY BASED ON A HANS CHRISTIAN ANDERSEN FAIRY TALE HELLE HAS ALREADY DIED AT THE NOVEL'S OUTSET BUT THE STORY REACHES BACK TO HER CHILDHOOD IN DENMARK GRADUALLY LEADING UP TO HER LAST YEARS WHEN SHE MEETS FRANCES IT'S CLEAR THAT THE RELATIONSHIP BETWEEN THE TWO WOMAN IS SEXUALLY FRAUGHT BUT THE NATURE OF THE TENSION IS NOT MUCH DEVELOPED OR CLARIFIED HELLE TELLS FRANCES FAIRLY CHILLING STORIES ABOUT HERSELF INCLUDING HER GIRLHOOD ATTEMPT AT POISONING HER STEPMOTHER WHILE TEASINGLY DECLARING THAT SHE THINKS LIES ARE MORE INTERESTING THAN TRUTH HELLE'S ROLE AS A CASSANDRA SEEMS MORE THAN A BIT COMPROMISED BY HER AVOWED DISHONESTY AN INCONSISTENCY THAT IS NEVER QUITE WORKED OUT MS DAVIS WHO CAN WRITE VERY BEAUTIFULLY IS BETTER AT PROVIDING TANTALIZING FRAGMENTS OF HELLE'S LIBRETTOS THAT CONVEY THE EERIE CHARMS OF HER ART HELLE'S OPERAS EXEMPLIFY HER BELIEF IN A CHAOTIC DESTRUCTIVE UNIVERSE AN OUTLOOK UNCOMFORTABLY CLOSE TO THAT OF ANOTHER FICTIONAL COMPOSER THOMAS MANN'S ADRIAN LEVERKUHN IN DOKTOR FAUSTUS BUT INSTEAD OF EXPLORING THE RAMIFICATIONS OF THESE DARK THEMES MS DAVIS SEEMS CONTENT MERELY TO STIR THEM INTO THE BREW ALONG WITH SOME OBLIGATORY REFERENCES TO NAZIS THE BOMB AND OTHER MANIFESTATIONS OF UNIVERSAL CHAOS WHAT PROMISES AT FIRST GLANCE TO BE A FEMINIST REVISION OF DOKTOR FAUSTUS ENDS UP A LITTLE CLOSER TO A HIGHBROW REMAKE OF FATAL ATTRACTION THE 11 STORIES IN BA PHILLIPS'S FIRST COLLECTION GOODBYE FRIENDS BRIDGE WORKS 163 PAGES 1595 REFLECT THE INCREASING CONFUSION PEOPLE SEEM TO BE FEELING THESE DAYS ABOUT THE NATURE OF ROLES AND RELATIONSHIPS IN THE OPENING STORY TWO WOMEN WHO'VE MOVED IN TOGETHER AREN'T SURE IF THEY ARE HOUSEMATES FRIENDS OR LOVERS OR WHETHER THEIR RELATIONSHIP WILL BE A PARTNERSHIP OF EQUALS OR MERELY AN IMITATION OF BAD OLD HUSBAND AND WIFE STEREOTYPES THE TITLE STORY FEATURES A YOUNG URBAN PROFESSIONAL WHO CRAVES STYLE AND ELEGANCE BUT FEELS HELPLESSLY AWKWARD WHETHER SHE'S HOBNOBBING WITH THE UPPER CRUST AT AN EXCLUSIVE MANHATTAN PARTY OR TRYING TO DEAL WITH HER MAID BACK AT HOME FROM THE RAPIDLY UNRAVELING TEACHER AT A POSH GIRLS' SCHOOL WHO HATES HER STUDENTS TO THE AMERICAN TOURIST IN INDIA WHO UNCHARACTERISTICALLY SAMPLES THE LOCAL AND ILLEGAL OPIUM CROP THESE ARE CHARACTERS WHO FIND THEMSELVES STEPPING OVER BOUNDARIES IN A WORLD IN WHICH TRANSGRESSION ITSELF HAS LOST ITS MEANING BUT NOT ITS POWER TO DISTURB THEIR PEACE OF MIND 9305270080 930527 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 4 HIGH 2 LOW 2 NEAR CLOSING BID 2 1/2 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 44 DAYS 312 45 TO 89 DAYS 315 90 TO 119 DAYS 317 120 TO 149 DAYS 322 150 TO 179 DAYS 325 180 TO 229 DAYS 335 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 317 60 DAYS 320 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 264 TWO MONTHS 267 THREE MONTHS 283 SIX MONTHS 310 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 313 THREE MONTHS 328 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 303 60 DAYS 307 90 DAYS 310 120 DAYS 313 150 DAYS 318 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE 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 733 60 DAYS 741 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 727 60 DAYS 737 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9305270079 930527 MARKETING & MEDIA CBS PLANS TO ASK CABLE FIRMS TO PAY TO CARRY PROGRAMS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CBS INC BRACING FOR TOUGH NEGOTIATIONS WITH CABLE SYSTEMS UNDER THE NEW CABLE REREGULATION LAW SAID IT WILL ASK SYSTEMS THAT CARRY ITS SEVEN OWNED TELEVISION STATIONS TO BEGIN PAYING FOR THE RIGHT TO THE AIR THE CBS PROGRAMMING UNDER NEW FEDERAL REGULATIONS ALL BROADCAST STATIONS HAVE UNTIL JUNE 17 TO TELL CABLE SYSTEMS IN THEIR MARKETS WHETHER THEY WILL OPT FOR RETRANSMISSION CONSENT BY WHICH THEY CAN REQUIRE CABLE SYSTEMS TO PAY SOME CONSIDERATION FOR AIRING A STATION'S PROGRAMMING OR MUST CARRY WHICH LETS THE STATIONS DEMAND CARRIAGE ON THE LOCAL CABLE SYSTEM BUT DOESN'T LET THEM ALSO DEMAND PAYMENTS CBS WITH ITS ANNOUNCEMENT YESTERDAY HAS CHOSEN RETRANSMISSION CONSENT BUT THAT OPTION ALSO ALLOWS CABLE SYSTEMS TO DROP THE STATIONS IF THEY BALK AT THE PRICE THE STATIONS TRY TO CHARGE CBS THUS JOINS NBC A UNIT OF GENERAL ELECTRIC CO WHICH MADE A SIMILAR ANNOUNCEMENT CONCERNING ITS SEVEN OWNED STATIONS LAST WEEK CAPITAL CITIES/ABC INC ALSO IS EXPECTED TO OPT FOR RETRANSMISSION WHEN IT MAKES PUBLIC THE DECISION FOR ITS EIGHT OWNED STATIONS NEXT WEEK CBS EXECUTIVES SAID THAT IN ISOLATED CASES ON INDIVIDUAL CABLE SYSTEMS ITS OWN STATIONS MAY PREFER THE MUST CARRY OPTION PARTICULARLY IN AREAS WHERE THEIR SIGNALS OVERLAP WITH OTHER CBS AFFILIATES OTHERWISE CABLE SYSTEMS COULD PLAY TWO NETWORK AFFILIATES IN OVERLAPPING AREAS AGAINST EACH OTHER THREATENING TO DUMP AN AFFILIATE THAT ASKS A STEEP PRICE ONCE A STATION PICKS RETRANSMISSION THE TWO SIDES HAVE UNTIL OCT 6 TO WORK OUT PAYMENT TERMS BUT SEVERAL MAJOR CABLE COMPANIES INCLUDING TELECOMMUNICATIONS INC AND CONTINENTAL CABLEVISION INC HAVE SAID THEY WON'T MAKE FLATOUT CASH PAYMENTS FOR A BROADCASTER'S SIGNAL SO SOME BROADCASTERS HAVE BEGUN LOOKING FOR COMPENSATION IN OTHER FORMS FOX INC FOR EXAMPLE HAS GONE FOR RETRANSMISSION FOR ITS GROUP OF SEVEN TV STATIONS BUT INSTEAD OF DEMANDING STRAIGHT CASH PAYMENTS THE NEWS CORP UNIT HAS REQUESTED CHANNEL SPACE FOR A NEW FOX CABLE NETWORK ON TELECOMMUNICATIONS INC'S CABLE SYSTEMS TCI WILL PAY 25 CENTS PER SUBSCRIBER FOR THE NEW NETWORK WHICH FOX WILL PROGRAM FOX WILL PASS ON A PORTION OF THE PAYMENTS TO THE AFFILIATES THAT FOLLOW ITS APPROACH CBS SENIOR VICE PRESIDENT JAY KRIEGEL SAID YESTERDAY THAT CBS IS LOOKING FOR CASH COMPENSATION ALTHOUGH IT IS WILLING TO LISTEN TO OTHER OFFERS HOWEVER HE SAID THE COMPANY ISN'T LOOKING TO GET INTO ANY NEW BUSINESSES SUCH AS CABLE AS A RESULT OF RETRANSMISSION WE ARE INTERESTED IN THE FUTURE OF FREE OVERTHEAIR BROADCASTING HE SAID NBC AND ABC ARE LOOKING AT THE POSSIBILITY OF TRADING CABLE CHANNEL SPACE FOR THE VALUE OF THEIR STATION SIGNALS NBC IS LOOKING INTO THE POSSIBILITY OF STARTING AN NBC NEWS CABLE CHANNEL WHILE ABC'S PARENT CAPITAL CITIES/ABC IS BELIEVED TO BE LOOKING FOR NEW SPACE FOR A SECOND VERSION OF ITS ESPN SPORTS CHANNEL 9305270078 930527 WHO'S NEWS INCO HOMES CORP INCO HOMES CORP UPLAND CALIF MEYER FELDBERG PRESTON MARTIN RONALD L NEELEY AND MARTIN T HART WERE NAMED DIRECTORS COMPLETING THE INITIAL SIXPERSON BOARD MR FELDBERG IS DEAN OF THE GRADUATE SCHOOL OF BUSINESS AT COLUMBIA UNIVERSITY DR MARTIN IS A FORMER CHAIRMAN OF THE FEDERAL HOME LOAN BANK BOARD MR NEELEY IS FOUNDER AND PRESIDENT OF MAINTENANCE WAREHOUSE/AMERICA CORP AND MR HART IS A DENVERBASED BUSINESSMAN AND INVESTOR INCO HOMES WHICH HAD ITS INITIAL PUBLIC OFFERING EARLIER THIS MONTH DEVELOPS AND BUILDS SINGLEFAMILY HOMES MARKETED TO FIRSTTIME BUYERS IN SOUTHERN CALIFORNIA 9305270077 930527 SEAGRAM BUYS 57 STAKE IN TIME WARNER SEEKS 15 ACQUIRER PAYS 700 MILLION ON OPEN MARKET VOWS TO BE FULLY SUPPORTIVE' BY WALL STREET JOURNAL REPORTERS LAURA LANDRO JOHNNIE L ROBERTS AND EBEN SHAPIRO SEAGRAM CO SAID IT HAS ACQUIRED 57 OF TIME WARNER INC ON THE OPEN MARKET FOR ABOUT 700 MILLION AND PLANS TO INCREASE ITS STAKE TO 15 OF THE ENTERTAINMENT COMPANY'S SHARES THOUGH THE DISCLOSURE IMMEDIATELY SPARKED SPECULATION AMONG SOME ON WALL STREET AS TO SEAGRAM'S LONGERTERM INTENTIONS EDGAR M BRONFMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE GLOBAL SPIRITS AND JUICE MAKER SAID IN A STATEMENT THAT WE SEE OURSELVES AS FRIENDLY INVESTORS ONLY AND INTEND TO BE FULLY SUPPORTIVE OF TIME WARNER MANAGEMENT THE CANADIAN COMPANY SAID IT BEGAN ACQUIRING THE 2112 MILLION SHARES ON FEB 2 AND PAID AN AVERAGE PRICE OF 3324 SEAGRAM'S MOVE COMES ON THE HEELS OF TIME WARNER'S ANNOUNCEMENT THAT IT AGREED TO SELL A 25 STAKE IN ITS TIME WARNER ENTERTAINMENT UNIT FOR 25 BILLION TO U S WEST INC THAT TRANSACTION WHICH MUST CLEAR FEDERAL REGULATORS COULD TAKE MONTHS TO CLOSE SOME ON WALL STREET RAISED QUESTIONS YESTERDAY AS TO WHETHER MR BRONFMAN AND HIS SON EDGAR BRONFMAN JR ALSO A SEAGRAM OFFICIAL MIGHT RAISE THEIR STAKE AND SEEK TO DERAIL THE U S WEST DEAL THE U S WEST INVESTMENT HAS BEEN CRITICIZED BY SOME AS NEGATIVE TO TIME WARNER SHAREHOLDERS BECAUSE IT GIVES U S WEST PART OF TIME WARNER'S FUTURE CASH FLOW FROM ITS FILMED ENTERTAINMENT AND CABLE TV BUSINESSES TIME WARNER APPLAUDED THE SEAGRAM INVESTMENT SAYING IN A STATEMENT THAT WE'RE PLEASED IT ADDED WE WELCOME THEM AS SHAREHOLDERS BECAUSE THEY CLEARLY EXPRESSED CONFIDENCE IN OUR VISION AND STRATEGY FOR GROWTH WITH ITS MAIN BUSINESS IN SPIRITS A MATURE INDUSTRY SEAGRAM HAS BEEN SEARCHING FOR ACQUISITIONS FOR SEVERAL YEARS BUT ANALYSTS WIDELY EXPECTED A MOVE IN THE FOOD OR BEVERAGE BUSINESS SEAGRAM SAID IT HAS NO INTENTION OF SEEKING A SEAT ON TIME WARNER'S BOARD AND COMPARED THE INVESTMENT TO THE 243 FRIENDLY STAKE IT HAS HELD IN DUPONT CO SINCE 1981 WITHOUT GETTING INVOLVED IN DAYTODAY MANAGEMENT SEAGRAM DOES HAVE REPRESENTATION ON DUPONT'S BOARD THOUGH BUT THE BRONFMAN FAMILY HAS A HISTORY OF MUCH GREATER INTEREST IN THE ENTERTAINMENT INDUSTRY THAN THEY DO IN CHEMICALS THE SENIOR MR BRONFMAN THE CHIEF EXECUTIVE ONCE CONTROLLED MOVIEMAKER MGM AND HIS SON SEAGRAM'S PRESIDENT AND CHIEF OPERATING OFFICER PRODUCED MOVIES IN THE 1970S AND HAS LONG HOBNOBBED WITH THE HOLLYWOOD SET HE'S THE ONE WHO HAS THE DOMINANT INTEREST IN THE ENTERTAINMENT BUSINESS SAID ONE PERSON CLOSE TO THE YOUNGER MR BRONFMAN THE ANNOUNCEMENT CAME AFTER THE CLOSE OF THE MARKET IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TIME WARNER COMMON STOCK CLOSED AT 38 PER SHARE UP 1375 ON SLIGHTLY HIGHERTHANAVERAGE VOLUME OF 19 MILLION SHARES AFTER THE ANNOUNCEMENT IT CHANGED HANDS AT 39 UP ANOTHER 1 IN AFTERHOURS TRADING OFF THE EXCHANGE THERE HAVE BEEN RUMORS FOR SOME WEEKS OF AN ACCUMULATION IN TIME WARNER STOCK BUT THE DISCLOSURE THAT SEAGRAM WAS THE BUYER CAME AS A COMPLETE SURPRISE TO ANALYSTS SEAGRAM STOCK ROSE 125 CENTS TO CLOSE AT 30125 IN BIG BOARD TRADING YESTERDAY SEAGRAM HAD RETAINED INVESTMENT BANKING CONCERN ALLEN & CO TO STUDY INVESTMENTS IN THE ENTERTAINMENT INDUSTRY AND WAS ADVISED THAT TIME WARNER WAS THE BEST AVAILABLE INVESTMENT AMONG SEVERAL COMPANIES IN THE INDUSTRY WE BELIEVE THE MEDIA AND ENTERTAINMENT BUSINESS IS ONE OF THE GREAT GROWTH SECTORS OF THE 1990S AND BEYOND THE SENIOR MR BRONFMAN SAID IN A STATEMENT WE ALSO BELIEVE TIME WARNER IS THE BESTPOSITIONED COMPANY TO BENEFIT FROM FUTURE GROWTH IN THE FIELD MARIO GABELLI WHOSE GABELLI FUNDS OWN TIME WARNER STOCK SAID THE INVESTMENT WAS A FAVORABLE ONE FOR TIME WARNER AND UNDERSCORES THE VISION OF THE LATE CHIEF EXECUTIVE STEVEN J ROSS AND HIS SUCCESSOR GERALD LEVIN BUT HE RECALLED THE FRIENDLY TISCH FAMILY INVESTMENT IN CBS INC IN 1986 WHICH LED TO THE EVENTUAL TAKEOVER OF THAT COMPANY COULD THE SEAGRAM'S INVESTMENT BE A TROJAN HORSE HE ASKED BUT ANALYST LISBETH BARRON OF SG WARBURG & CO WHO HAS BEEN TRACKING THE ACCUMULATION FOR WEEKS IN REPORTS CALLED THE DISCLOSURE OF THE BUYER'S IDENTITY ANTICLIMACTIC AND SAID SHE DOESN'T EXPECT SEAGRAM TO ATTEMPT A TAKEOVER OF TIME WARNER A SPOKESWOMAN FOR U S WEST SAID THE SEAGRAM'S INVESTMENT DOESN'T SOUND LIKE ANYTHING THAT WOULD AFFECT OUR TRANSACTION TIME WARNER HAD NO COMMENT YESTERDAY ON THE U S WEST DEAL ANALYSTS NOTED THAT THE OPENMARKET PURCHASE OF THE STOCK BY MONTREALBASED SEAGRAM DOES NOTHING TO ENHANCE TIME WARNER'S SEARCH FOR ADDITIONAL STRATEGIC PARTNERS AND MONEY TO PAY DOWN ITS STILLSIZABLE DEBT MS BARRON OF SG WARBURG NOTED THAT ANOTHER INVESTOR SUCH AS U S WEST MIGHT HAVE BROUGHT MORE STRATEGIC OR ENTREPRENEURIAL FLAVOR TO THE COMPANY SHE SAID SHE DOUBTED THE BRONFMANS WOULD HAVE THAT MUCH INFLUENCE OVER MANAGEMENT AND THAT THE COMPANY MIGHT HAVE BENEFITED MORE IF THE 700 MILLION ACQUISITION PRICE HAD GONE TO PAYING DOWN DEBT AT THE PRICE THAT U S WEST PAID TO ACQUIRE 25 OF THE TIME WARNER ENTERTAINMENT UNIT SEAGRAM PRESUMABLY WOULD HAVE HAD TO PAY 570 MILLION FOR A 57 STAKE IN THAT ENTITY AND TIME WARNER WOULD HAVE RECEIVED CASH INSTEAD SEAGRAM DECIDED TO SPEND ABOUT 130 MILLION MORE TO BUY STOCK IN THE OPEN MARKET BUT ALSO IS INVESTING IN THE WHOLE COMPANY WHICH INCLUDES THE HUGE RECORDED MUSIC AND PUBLISHING OPERATIONS THAT AREN'T PART OF TIME WARNER ENTERTAINMENT SEAGRAM WILL ALSO RECEIVE ABOUT 67 MILLION IN ANNUAL DIVIDENDS PLUS ANY APPRECIATION IN THE STOCK IN FACT GIVEN THE 39ASHARE VALUATION OF TIME WARNER COMMON YESTERDAY AFTERNOON SEAGRAM ALREADY HAS REALIZED A PAPER PROFIT OF ABOUT 125 MILLION THOUGH IT HAS BEEN ACCUMULATING THE STOCK FOR MONTHS SEAGRAM ONLY NOTIFIED TIME WARNER YESTERDAY AFTERNOON THE YOUNGER MR BRONFMAN PLACED A CALL TO TIME WARNER'S MR LEVIN A SOCIAL ACQUAINTANCE AND WAS TOLD HE WAS TRAVELING HE EVENTUALLY HAD A BRIEF CONVERSATION WITH TIME WARNER'S GENERAL COUNSEL SEAGRAM SAID IT PLANNED TO SEEK FEDERAL APPOVAL TO ACQUIRE 15 OF TIME WARNER AND HAD FILED A REQUEST TO THAT EFFECT WITH THE FEDERAL TRADE COMMISSION A SEAGRAM SPOKESMAN INSISTED THE COMPANY DIDN'T PLAN TO RAISE ITS STAKE BEYOND THAT LEVEL 9305270076 930527 SPI HOLDING EDS PLAN JOINT VENTURE TO OFFER ONDEMAND VIDEOS IN HOTELS BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL RICHARDSON TEXAS SPI HOLDING INC SAID ITS SPECTRADYNE INC UNIT PLANS TO JOIN FORCES WITH ELECTRONIC DATA SYSTEMS CORP TO DELIVER VIDEO ON DEMAND TO HOTEL ROOMS EDS THE COMPUTER SERVICES UNIT OF GENERAL MOTORS CORP SAID IT WILL RECEIVE AT LEAST 250 MILLION UNDER TERMS OF A PROPOSED 10YEAR CONTRACT WITH SPECTRADYNE THE COMPANIES SAID A DEFINITIVE PACT IS EXPECTED TO BE SIGNED WITHIN 60 DAYS OFFICIALS OF SPECTRADYNE WHICH PROVIDES INROOM MOVIES AT HOTELS AND MOTELS HOPE THE NEW SERVICE WILL HELP IT FEND OFF A NUMBER OF AGGRESSIVE RIVALS WHO HAVE WON AWAY SOME OF ITS BIGGEST HOTEL CUSTOMERS INCLUDING HILTON HOTELS CORP'S COMPANYOWNED HOTELS AND A PREFERREDPROVIDER ACCOUNT WITH ITT CORP'S SHERATON CHAIN WHILE NONE OF SPECTRADYNE'S COMPETITORS OFFER TRUE DIGITAL VIDEOONDEMAND A COMMUNICATIONS SATELLITE CORP VENTURE GIVES ITS CUSTOMERS THE NEXT BEST THING THE ABILITY TO SUMMON UP TO 60 MOVIES MANY OF THEM IN MULTIPLE COPIES SO THAT VIEWERS CAN CALL UP THE TITLE THEY WANT WITHOUT WAITING FOR ITS SCHEDULED STARTING TIME SPECTRADYNE AND EDS SAID THEIR SYSTEM EVENTUALLY WOULD ENABLE HOTEL GUESTS TO SUMMON AT ANY TIME UP TO 50 MOVIES STORED DIGITALLY IN DATA BANKS TO DO SO THE COMPANIES ARE DEVELOPING A HIGHSPEED MEMORY DEVICE WHICH TEMPORARILY STORES DIGITAL MOVIES AS THEY ARE DELIVERED TO THE TELEVISION SET THE DEVICE IS EXPECTED TO BE AVAILABLE FOR FIELD TESTS BY FALL SPECTRADYNE OFFICIALS SAID WITH ITS CURRENT SYSTEM SPECTRADYNE OFFERS MOST OF ITS HOTELS A MENU OF EIGHT MOVIES THAT RUN ON A SET SCHEDULE ABOUT 20 OF THE GUESTS ALSO CAN CHOOSE UP TO 200 MOVIES FROM A RUDIMENTARY VIDEOONDEMAND SYSTEM THAT SUMMONS MOVIES FROM A BANK OF VIDEOCASSETTE RECORDERS CALLED A VIDEO JUKEBOX THE PLANNED VENTURE WITH EDS WOULD REPLACE THIS MECHANICAL SYSTEM WITH A DIGITAL NETWORK LINKING HOTELS BY SATELLITE WITH EDS'S COMMAND CENTER IN PLANO TEXAS SPECTRADYNE OFFICIALS SAID THAT THE FIRST PHASE OF THE NETWORK WILL BE IN PLACE LATER THIS YEAR BUT THAT DIGITAL MOVIES WON'T BE AVAILABLE TO ALL 2500 OF THE COMPANY'S HOTEL CUSTOMERS UNTIL THE FIRST QUARTER OF 1994 IF THE SPECTRADYNEEDS HOTEL MOVIE ALLIANCE IS SUCCESSFUL THE PARTNERS HOPE TO REACH OUTSIDE THE LODGING INDUSTRY TO HOSPITALS APARTMENT COMPLEXES AND MILITARY INSTALLATIONS 9305270075 930527 WHITE HOUSE GIVES GROUND ON ENERGY TAX BY JOHN HARWOOD AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION SCRAMBLING TO CONSOLIDATE DEMOCRATIC SUPPORT FOR ITS DEFICITREDUCTION BILL AGREED TO ALTER ITS ENERGY TAX TO DRAW CRUCIAL VOTES FROM OILSTATE LAWMAKERS TREASURY SECRETARY LLOYD BENTSEN CAME TO CAPITOL HILL TO ASSURE TEXAS LAWMAKERS THAT THE ADMINISTRATION WOULD URGE THE SENATE TO MODIFY THE ENERGY TAX TO EFFECTIVELY EXEMPT EXPORTERS OF CHEMICALS AND OTHER ENERGYINTENSIVE PRODUCTS BY GIVING THEM REBATES THE CONCESSION BROKERED BY REP JACK BROOKS A SENIOR TEXAS DEMOCRAT APPEARED TO BE HAVING THE DESIRED EFFECT LAST NIGHT EARLY THIS WEEK ONLY SIX OF THE 21 TEXAS DEMOCRATS WERE PLEDGED TO SUPPORT THE TAX BILL AT LEAST THREE MORE HAVE SINCE SIGNED ON AND AFTER HAVING LUNCH WITH MR BENTSEN SEVERAL OTHERS TENTATIVELY CALLED A NEWS CONFERENCE FOR TODAY TO ANNOUNCE THEIR SUPPORT STILL THE OUTCOME OF THE VOTE SCHEDULED FOR TODAY IN THE HOUSE REMAINED UNCERTAIN WITH THE ADMINISTRATION'S ENTIRE ECONOMIC PROGRAM IN THE BALANCE MR CLINTON VICE PRESIDENT AL GORE AND OTHER TOP OFFICIALS MADE SCORES OF TELEPHONE CALLS TO WAVERING DEMOCRATS HOUSE LEADERS WHOSE OWN CREDIBILITY IS ALSO AT STAKE KEPT THE PRESSURE ON IN A PAINSTAKING DAY OF FACETOFACE LOBBYING WE'RE NOT THERE YET SAID VETERAN REP JOHN MURTHA D PA DESCRIBING THE LEADERSHIP AS WELL SHORT OF THE 218 VOTES NEEDED FOR VICTORY ADMINISTRATION OFFICIALS AND HOUSE LEADERS CONTINUED TO EXPRESS CONFIDENCE THAT THEY CAN PASS THE MEASURE A MIX OF TAX INCREASES AND SPENDING CUTS PROJECTED TO REDUCE THE FEDERAL DEFICIT BY ROUGHLY 350 BILLION OVER FIVE YEARS I THINK IT'S GOING TO BE TIGHT BUT I THINK WE'RE GOING TO PREVAIL SAID DEPUTY TREASURY SECRETARY ROGER ALTMAN BUT LATE YESTERDAY SOME SENIOR DEMOCRATS GREW INCREASINGLY ANXIOUS AS BY ONE ESTIMATE THE VOTE COUNT STALLED AT AROUND 200 MR MURTHA AMONG OTHERS HELD OUT THE POSSIBILITY OF POSTPONING THE VOTE UNTIL THE LEADERSHIP IS ASSURED OF A MAJORITY IN MY 13 YEARS HERE I'VE NEVER SEEN IT SO HARD TO GET VOTES SAID REP CHARLES SCHUMER D NY LATE YESTERDAY WHITE HOUSE OFFICIALS SAID THE PRESIDENT WAS CONSIDERING MAKING AN EXTRAORDINARY PERSONAL VISIT TO CAPITOL HILL TO LOBBY FOR HIS LEGISLATION EVEN WITHOUT ENOUGH COMMITMENTS HOUSE LEADERS TOOK HEART FROM THE RELATIVELY SMALL NUMBER OF DEMOCRATS WHO HAVE DECLARED FIRM OPPOSITION TO THE CLINTON PACKAGE ABOUT 15 HAVE DONE SO BUT THE LEADERSHIP CAN AFFORD TO LOSE 38 FROM THEIR 256MEMBER MAJORITY SOME MEMBERS WANT TO WAIT UNTIL THE LAST POSSIBLE MOMENT TO DECIDE SAID HOUSE SPEAKER THOMAS FOLEY WHEN WE VOTE TOMORROW WE'LL HAVE SUFFICIENT VOTES TO PASS THE BILL THE LASTMINUTE CONCESSIONS ON THE ENERGY TAX WERE A SIGN OF HOW UNEASY ADMINISTRATION OFFICIALS WERE YESTERDAY THE CHEMICAL GLASS CEMENT PAPER AND OTHER INDUSTRIES WORRIED ABOUT LOSING BUSINESS TO FOREIGN COMPETITORS HAD BEEN PUSHING HARD TO EXEMPT EXPORTS BUT HADN'T FOUND THE ADMINISTRATION RECEPTIVE EARLIER THIS WEEK HOWEVER PRESIDENT CLINTON TOLD CONGRESSMEN AT THE WHITE HOUSE THAT SUCH A PROVISION SHOULD HAVE BEEN IN THE ORIGINAL VERSION THE HOUSE WAYS AND MEANS COMMITTEE WITH THE ACQUIESCENCE OF THE WHITE HOUSE ALREADY HAS MOVED TO LEVY A FEE EQUIVALENT TO THE ENERGY TAX ON IMPORTS OF ENERGYINTENSIVE PRODUCTS SOME WAVERING HOUSE MEMBERS WERE WAITING TO SEE HOW SENATE CRITICS OF THE ENERGY TAX SUCH AS LOUISIANA'S TWO DEMOCRATIC SENATORS JOHN BREAUX AND BENNETT JOHNSTON RESPONDED IF THE SENATE DEMOCATS BREAUX JOHNSTON AND THE OTHERS CAN REACH AGREEMENT OVER THERE I'LL BE WILLING TO SEND THEM A BILL SAID REP BILLY TAUZIN ALSO A LOUISIANA DEMOCRAT THERE WERE HOWEVER LINGERING CONCERNS ON CAPITOL HILL THAT REBATING THE ENERGY TAX ON EXPORTED PRODUCTS MIGHT RUN AFOUL OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE ADMINISTRATION HAS ALSO INDICATED THAT IT WILL ALTER THE ENERGY TAX TO EXEMPT PETROLEUM COKE AND RESIDUAL FUELS FROM THE SURCHARGE THAT WILL BE LEVIED ON GASOLINE AND SOME OTHER REFINED PETROLEUM PRODUCTS CONGRESSIONAL SOURCES SAID HEATING OIL DIESEL FUEL AND GASOLINE USED ON FARMS AND LIQUEFIED PETROLEUM GAS ARE EXEMPTED FROM THE SURCHARGE IN THE HOUSE VERSION OF THE BILL THE VOTE WILL BE CLOSE IN ANY EVENT AND BOTH SIDES DEPLOYED THE FULL RANGE OF BLANDISHMENT AND BLUSTER TO SWAY THE OUTCOME THROUGHOUT THE DAY HOUSE LEADERS NEGOTIATED WITH WAYWARD DEMOCRATIC CONSERVATIVES OVER A PROPOSAL THAT WOULD REQUIRE THE PRESIDENT TO NOTIFY CONGRESS IF SPENDING ON FEDERAL BENEFIT PROGRAMS SUCH AS MEDICARE EXCEEDS PROJECTIONS CONGRESS WOULD HAVE TO RAISE TAXES OR CUT BENEFITS OR VOTE TO ALLOW THE DEFICIT TO INCREASE FOR THE LARGE CLASS OF DEMOCRATIC FRESHMEN NERVOUS ABOUT APPROVING SUBSTANTIAL TAX INCREASES OF ANY KIND VETERAN LAWMAKERS WARNED THAT ALTERNATIVES WOULD BE EVEN TOUGHER TO DEFEND PASS THIS BILL NOW OR WE'RE COMING BACK WITH A MUCH WORSE ONE LATER CAUTIONED REP ROBERT TORRICELLI D NJ REPUBLICANS FOR THEIR PART REFERRED TO THE EMBARRASSING WHITE HOUSE TRAVEL OFFICE CONTROVERSY REFLECTING THE GOP'S BELIEF THAT A SERIES OF RECENT POLITICAL SETBACKS HAVE WEAKENED THE ADMINISTRATION'S HAND HEADING INTO THE VOTE UNDERSCORING THE POINT WAS THE SHRUNKEN ECONOMICSTIMULUS MEASURE THAT THE HOUSE TOOK UP YESTERDAY MR CLINTON'S INITIAL 16 BILLION PROPOSAL WHICH WAS BLOCKED IN THE SENATE STOOD AT 931 MILLION LAST NIGHT AND IS TO BE OFFSET BY SPENDING CUTS ELSEWHERE THE GOP ALSO TRIED TO EXPLOIT HOUSE MEMBERS' ANXIETY OVER THE PROSPECT OF BACKING AN ENERGY TAX THAT COULD SOON BE KILLED IN THE SENATE THERE'S GOOD REASON FOR THOSE MEMBERS TO BE NERVOUS SAID SEN PETE DOMENICI R NM BUT HOUSE REPUBLICANS SEEMED RESIGNED TO THE PROSPECT THAT THE OPPOSITION HAD RAISED THE STAKES SUFFICIENTLY TO WIN IN THE HOUSE THEY'RE GOING TO DO EVERYTHING IT TAKES TO GET THE VOTES SAID OHIO REP JOHN KASICH RANKING REPUBLICAN ON THE BUDGET COMMITTEE THE WHITE HOUSE TRIED TO CLEAR AWAY POTENTIAL CONTROVERSY BY AGREEING TO DROP FROM AN EMERGENCY SPENDING BILL ABOUT 2 MILLION IN FUNDS FOR WHITE HOUSE SALARIES AND A NEW PHONE AND COMPUTER SYSTEM GEORGE STEPHANOPOULOS THE WHITE HOUSE COMMUNICATIONS DIRECTOR ACKNOWLEDGED THAT THE MONEY WAS REMOVED BECAUSE THE REQUEST MIGHT ATTRACT OPPOSITION AFTER THE MISHANDLED TRAVELOFFICE FIRINGS JACKIE CALMES CONTRIBUTED TO THIS ARTICLE 9305270073 930527 CREDIT MARKETS STRONG DEMAND AT US FIVEYEAR NOTE AUCTION SPARKS RALLY SENDING BOND PRICES UP SHARPLY BY WARREN GETLER AND JOSE DE CORDOBA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STRONGERTHANEXPECTED DEMAND AT THE GOVERNMENT'S AUCTION OF FIVEYEAR NOTES SPARKED A BOND MARKET RALLY THAT SENT BOND PRICES SHARPLY HIGHER THE BENCHMARK 30YEAR TREASURY BOND JUMPED 1 1/8 POINTS OR 1125 FOR A BOND WITH A 1000 FACE VALUE TO 102 16/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE PLUNGED TO 692 FROM 701 ON TUESDAY SHORTERTERM SECURITIES WHICH HAVE BEEN BATTERED IN RECENT TRADING SESSIONS ALSO FARED WELL YESTERDAY THE THREEMONTH BILL FOR EXAMPLE WAS QUOTED LATE YESTERDAY WITH A COUPONEQUIVALENT YIELD OF 309 DOWN FROM 312 TRADERS AND MARKET ANALYSTS SAID THAT GROWING SENTIMENT IN THE BOND MARKET THAT THE ECONOMY IS NOT HEADED FOR A PERIOD OF STRONG GROWTH HELPED FUEL THE RALLY FURTHER SUPPORT CAME FROM DIMINISHING FEARS THAT PRESIDENT CLINTON'S ECONOMIC PACKAGE MAY NOT BE APPROVED BY CONGRESS IT DOESN'T LOOK LIKE THERE IS ANY MOMENTUM TO INDICATE THAT THE ECONOMY IS GROWING MUCH FASTER SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS IN THAT KIND OF BACKGROUND IT'S HARD TO BELIEVE THAT INFLATION IS GOING TO BE HIGHER ACCORDING TO MR JOHNSON THERE IS AN INHERENT SKEPTICISM IN THE MARKET THAT THE PACE OF THE ECONOMY AND INFLATION ARE PICKING UP BUT THE FIRST BIG PUSH BEHIND YESTERDAY'S RALLY WAS UNEXPECTEDLY AGGRESSIVE BIDDING AT THE GOVERNMENT'S AUCTION OF NEW FIVEYEAR NOTES WHEN THE AUCTION RESULTS WERE RELEASED THEY SET OFF A BUYING FRENZY THAT'S BECAUSE EXPECTATIONS FOR THE 11 BILLION OFFERING OF FIVEYEAR NOTES HAD BEEN LOW TWOYEAR NOTES AUCTIONED ON TUESDAY WHICH INITIALLY DREW STRONG INTEREST WERE TRADING AT A LOWER PRICE EARLY YESTERDAY AND THE MARKET SENTIMENT WAS NEGATIVE BUT SOME DEALERS AND SPECULATIVE TRADERS DECIDED THAT THE MARKET FOR FIVEYEAR NOTES HAD GONE TOO FAR SOUTH OVER THE PAST WEEK THE YIELD ON THE WHENISSUED FIVEYEAR NOTE HAD RISEN ABOUT 015 PERCENTAGE POINT THOSE TRADERS BID AGGRESSIVELY AT THE AUCTION PRODUCING A LOWERTHANANTICIPATED YIELD FOR THE FIVEYEAR OF 539 OTHER TRADERS WHO HAD EXPECTED TO BE AWARDED THE NOTES AT A HIGHER YIELD WERE FORCED TO CHASE THE MARKET HIGHER TO CLOSE OUT SHORTS OR POSITIONS WHERE THEY HAD SOLD BORROWED SECURITIES IN HOPES OF BUYING THEM BACK AT THE AUCTION AT LOWER PRICES THE RESULT IN TRADER JARGON WAS A SHORT SQUEEZE THERE WERE SOME PEOPLE WHO DIDN'T GET FIVEYEAR NOTES WHO HAD WANTED TO GET THEM SAID JAY GOLDINGER A TRADER AT CAPITAL INSIGHT INC IN BEVERLY HILLS CALIF IN ADDITION TO THE LOWERTHANEXPECTED YIELD THE SOLID BIDDING FOR THE ISSUE WAS REFLECTED IN THE BIDTOCOVER RATIO WHICH MEASURES THE NUMBER OF BIDS RECEIVED COMPARED TO THE NUMBER ACCEPTED THE RATIO CAME IN AT 311TO1 FAR ABOVE THE 249TO1 AVERAGE RATIO PRODUCED AT THE PRIOR EIGHT FIVEYEAR NOTE AUCTIONS BUT PLAYERS SAID INVESTOR PARTICIPATION AT THE AUCTION WAS LIGHT FOR EXAMPLE THE LEVEL OF NONCOMPETITIVE BIDS WHICH CAN GAUGE INTEREST FROM INDIVIDUAL INVESTORS OUTSIDE WALL STREET WAS ON THE LOW SIDE AT 558 MILLION OVER THE PAST EIGHT AUCTIONS NONCOMPETITIVE BIDS AVERAGED 672 MILLION THE BEARS COULDN'T PUSH THE MARKET ANY LOWER MR GOLDINGER SAID IT WAS LIKE TRYING TO FORCE A BALL UNDER WATER IN A POOLIT JUST POPPED BACK UP BY THE END OF TRADING YESTERDAY FOLLOWTHROUGH BUYING HAD PROPELLED THE YIELD ON THE WHENISSUED FIVEYEAR NOTE DOWN TO 530 FROM 539 JUST BEFORE THE AUCTION RESULTS WERE ANNOUNCED TO A CERTAIN EXTENT THE STRONG DEMAND AT THE AUCTION HELPED TRADERS SEE THAT PERHAPS THE MARKET HAD GONE DOWN FAR ENOUGH IN THE WAKE OF A STORY IN THIS PAPER ON MONDAY THAT THE FEDERAL RESERVE HAS VOTED TO FAVOR A BIAS TOWARD HIGHER SHORTTERM INTEREST RATES THE PRICES OF SHORTTERM ISSUES REALLY HAVE GONE DOWN QUITE FAR QUITE FAST POINTED OUT MR JOHNSON AS YIELDS HAVE SURGED BEFORE YESTERDAY FOR EXAMPLE THE TWOYEAR NOTE HAD RISEN NEARLY 040 PERCENTAGE POINT SINCE THE FIRST WEEK OF MAY JIM FITZGIBBON CHIEF MARKET STRATEGIST AT TOKAI BANK LTD SAID THE RALLY IN TREASURYS YESTERDAY SHOWED THAT THE BEARISH SENTIMENT THAT HAD PERMEATED THE MARKET OVER THE PAST WEEK HAD GONE TOO FAR MR FITZGIBBON SAID THERE WAS FAR TOO MUCH OF A WILLINGNESS ON WALL STREET TO BELIEVE ALL THE BAD NEWS AND IGNORE THE GOOD NEWS ACCORDING TO JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP INVESTORS ARE BEGINNING TO BELIEVE THAT PERHAPS THE PRESIDENT'S PROPOSED DEFICIT REDUCTION PROGRAM WILL SUCCESSFULLY SURVIVE ITS FIRST STEPS THROUGH CONGRESS THE BOND MARKET STAGED A POWERFUL RALLY EARLIER THIS YEAR IN REACTION TO THE PROPOSED PLAN BECAUSE INVESTORS BELIEVED IT WOULD RESULT IN LOWER INTEREST RATES AND REDUCED INFLATIONARY PRESSURES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN WHILE SENTIMENT HAD SOURED LAST WEEK BECAUSE OF SPECULATION ABOUT A FED SHIFT TOWARD TIGHTENING MONEY SUPPLY DATA SHOWING CONTINUED SLUGGISHNESS IN THE ECONOMY HELPED SOOTHE THE MARKET'S FEARS OF HIGHER RATES THE COMMERCE DEPARTMENT REPORTED YESTERDAY THAT DURABLE GOODS ORDERS WERE FLAT IN APRIL COMING IN BELOW MOST FORECASTS ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED JUNE 1 AND MATURE MAY 31 1998 BANKS WERE ACTIVE IN THE MARKET FOR NEW INVESTMENTGRADE DEBT YESTERDAY WHILE FOAMEX LP'S NEW JUNK BONDS WERE QUICKLY BOUGHT UP BY YIELDHUNGRY INVESTORS THE NEW BANK OFFERINGS INCLUDED THE FIRST DEBT ISSUE BY BANK OF HAWAII A UNIT OF BANCORP HAWAII INC AMONG SECONDARY ISSUES MOST INVESTMENTGRADE BONDS CLOSED HIGHER REFLECTING THE RISE IN TREASURY PRICES JUNK BONDS WERE GENERALLY LITTLE CHANGED IN LIGHT VOLUME FOAMEX A LEADING SUPPLIER OF FOAM PRODUCTS TO THE AUTO AND HOMEFURNISHING INDUSTRIES OFFERED 160 MILLION OF SEVENYEAR SENIOR SECURED NOTES THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP NONCALLABLE FOR FIVE YEARS THE NOTES WERE PRICED AT PAR TO YIELD 95 THAT WAS SLIGHTLY BELOW PRICE TALK THAT ANTICIPATED A YIELD OF 9625 TO 975 THANKS TO STRONG INVESTOR DEMAND UNDERWRITERS WERE ABLE TO BOOST THE SIZE OF THE DEAL FROM A PREVIOUSLY PLANNED 150 MILLION THE ISSUE IS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBMINUS BY STANDARD & POOR'S CORP BUT WHILE DEMAND FOR NEW HIGHYIELD DEBT IS QUITE STRONG MANY OF THE OFFERINGS ARE NOT DOING AS WELL IN THE SECONDARY MARKET TRADERS SAID THIS PHENOMENON UNDERSCORES CONCERNS THAT JUNK PRICES MAY HAVE RISEN TOO FAST THIS YEAR AT THE SAME TIME THAT NEWISSUE YIELDS HAVE BEEN FALLING SEVERAL RECENTLY PRICED DEALS CONTINUE TO TRADE AT THEIR ISSUE PRICE OR IN SOME CASES HAVE FALLEN A LITTLE THAT'S IN SHARP CONTRAST TO OFFERINGS COMPLETED EARLIER THIS YEAR THAT ROSE TO 101 OR HIGHER ON THE FIRST DAY OF SECONDARY MARKET TRADING FOR EXAMPLE FOAMEX'S NOTES DID NOT MOVE ABOVE THEIR INITIAL OFFERING PRICE OF 100 AFTER BEING FREED BY DLJ TO TRADE IN THE SECONDARY MARKET STATION CASINOS INC'S 9625 SENIOR SUBORDINATED NOTES WHICH WERE PRICED MONDAY AT 100 TRADED LATE YESTERDAY AT 99 3/4 TRADERS SAID MEANWHILE ALLNET COMMUNICATION SERVICES INC'S 10YEAR SENIOR SUBORDINATED DEBENTURES WHICH WERE PRICED LAST THURSDAY AT 99187 TO YIELD 9125 HAVE DROPPED TO 98 3/4 ANALYSTS AND TRADERS SAY THE PHENOMENON MAY REFLECT SLIGHT CRACKS IN THE MARKET BUT BELIEVE THAT THE MARKET REMAINS GENERALLY HEALTHY DEMAND FOR HIGHYIELD PAPER IS TOO STRONG TO ALLOW NEW ISSUES TO DROP MUCH IN VALUE ACCORDING TO KINGMAN PENNIMAN SENIOR HIGHYIELD ANALYST AT DUFF & PHELPS/MCM MUNICIPAL BONDS CLIMBED WITH TREASURYS IN LATE TRADING AND CLOSED WITH GAINS OF 1/8 TO 1/2 POINT AMONG THE MUNIS WITH THE BIGGEST GAINS WERE THE BRAZOS RIVER AUTHORITY OF TEXAS' 605 POLLUTION CONTROL REVENUE BONDS OF 2025 THEY CLOSED 1/2 STRONGER AT 99 1/2 AND YIELDED 607 THE STRONG PERFORMANCE OF THE MUNI MARKET THIS WEEK ISN'T ALL THAT SURPRISING GIVEN RECENT PRICE ACTION INFLATION JITTERS TOOK A TOLL ON MUNIS IN THE LAST FEW WEEKS AND IT SEEMED TO BE ONLY A MATTER OF TIME BEFORE AN UPWARD CORRECTION WOULD OCCUR IN LIGHT NEWISSUE ACTIVITY THE LARGEST OFFERING PRICED WAS THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY'S 2438 MILLION ISSUE OF 1993 SERIES A HEALTH FACILITIES REVENUE CERTIFICATES OF PARTICIPATION A GOLDMAN SACHS & CO GROUP GAVE THE SECURITIES YIELDS THAT RANGE FROM 250 IN OCTOBER 1993 TO 585 IN 2025 NOT FORMALLY REOFFERED TO INVESTORS ARE 275 MILLION OF PERIODIC AUCTION RESET SECURITIES AND 275 MILLION OF INVERSE FLOATING RATE SECURITIES WHICH ALL HAVE A FINAL MATURITY OF OCT 1 2011 AMBAC INDEMNITY CORP IS INSURING THE ENTIRE ISSUE AND THE COPS CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE BETTERTHANEXPECTED TREASURY FIVEYEAR NOTE AUCTION HELPED MORTGAGE SECURITIES TO POST 1/4 POINT GAINS CURRENT COUPON COLLATERAL COULD NOT KEEP UP WITH THE GAINS OF THE TREASURY'S 10YEAR NOTE AND AS A RESULT SPREADS BETWEEN THE TWO WIDENED BY 002 TO 003 PERCENTAGE POINT FOR THE SECOND CONSECUTIVE SESSION THIS REVERSES A NARROWING TREND SEEN OVER MOST OF LAST WEEK THAT NARROWING COUPLED WITH LACK OF PARTICIPATION IN THE MARKET BY MORTGAGE BANKERS HAS HAMPERED TRADING FLOW OF LATE SPREADS ARE STILL CONSIDERED RELATIVELY TIGHT BY TRADERS SEVENPERCENT AGENCY COUPONS FOR JUNE DELIVERY ADVANCED ABOUT 1/4 POINT GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ROSE 9/32 TO 100 4/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ROSE 8/32 TO 100 11/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ADVANCED 9/32 TO 100 9/32 TRADERS SAY RETAIL ACCOUNT INTEREST HAS RESURFACED RECENTLY IN PASSTHROUGHS AND MORTGAGE DERIVATIVE PRODUCTS BACKED BY HIGHERCOUPON SECURITIES PREPAYMENT SPEEDS ARE ESTIMATED TO BEGIN TO SLOW DOWN IN THE NEXT COUPLE OF MONTHS WITH PREPAYMENT INDEXES SUCH AS THE MORTGAGE BANKERS REFINANCING INDEX ILLUSTRATING THE PREDICTED DOWNWARD TREND 9305270072 930527 LETTERS TO THE EDITOR WE CANNOT IGNORE TREACHERY I GREATLY ADMIRE HISTORIAN ARTHUR SCHLESINGER JR AND I DO NOT PRETEND TO BE REMOTELY CONNECTED TO HIS FIELD OF EXPERTISE FEW PEOPLE POSSESS HIS CREDENTIALS OR CAN EQUAL HIS ACCOMPLISHMENTS BUT I CAN SPOT SOPHISTRY WHEN I SEE IT IN ADVOCATING A NONINTERVENTIONIST POLICY IN BOSNIA MR SCHLESINGER RELIES ON THE SAGE ADVICE OF PRESIDENT KENNEDY WE CANNOT RIGHT EVERY WRONG OR REVERSE EACH ADVERSITY HOW TO THINK ABOUT BOSNIA EDITORIAL PAGE MAY 3 I TOO AM A FAN OF PRESIDENT KENNEDY BUT TO SUGGEST THAT THE WORLD OF 32 YEARS AGO WHEN JACK KENNEDY SPOKE THOSE ELEGANT WORDS IS ANALOGOUS TO THE WORLD OF TODAY IS TO SAY THE LEAST STRETCHING IT A BIT THE SOVIET UNION WAS THEN STILL THE EVIL EMPIRE OUR NUCLEAR SUPREMACY OR EVEN EQUIVALENCY WAS THEN STILL HIGHLY IN DOUBT WE COULD MAKE NO CERTAIN ASSUMPTION ABOUT WHETHER OR WHICH ACTION ON OUR PART WOULD BE REGARDED AS A PROVOCATION BY THE RUSSIANS NOR DID WE KNOW WITH CERTAINTY WHAT THEIR REACTION MIGHT BE AND WHETHER IN THAT PRECARIOUS STRUGGLE BETWEEN THE FREE WORLD AND COMMUNISM IT WOULD LEAD TO A NUCLEAR HOLOCAUST IN SUCH A WORLD IT WAS WISE TO RECOGNIZE THAT THE US COULD NOT REACT TO EACH ADVERSITY BUT IN TODAY'S WORLD JACK KENNEDY MIGHT WELL BE ON THE SIDE OF INTERVENTION IN BOSNIA MR SCHLESINGER ALSO MAKES LIBERAL USE OF THE EXAMPLE OF OUR MISERABLE FATE IN VIETNAM AS A COMPELLING RATIONALE TO STAY OUT OF BOSNIA I HEARTILY AGREE THAT WE MUST LEARN FROM HISTORY BUT VIETNAM SHOULD NOT SERVE AS THE SOLE MODEL IN A DEBATE ABOUT US INTERVENTION IN THE PRESENT WORLD ORDER WHILE WE CANNOT AS MR SCHLESINGER SUGGESTS INTERVENE IN EVERY CRUSADE FOR WORLD REDEMPTION WE ALSO CANNOT IGNORE EVERY ACT OF WORLD TREACHERY MR SCHLESINGER'S LOGIC FOR STAYING OUT OF BOSNIA ESCAPES ME WHEN HE SUGGESTS WE NOT ACT BECAUSE THE EUROPEANS WILL NOT AFTER ALL HE SUBMITS THEY ARE MORE FAMILIAR WITH THE TERRITORY THEY MAY KNOW THE TURF BUT WHEN MAY I ASK DID THE EUROPEANS ACT EXCEPT WHEN IT WAS TOO LATE WORLD WAR II IS ALL TOO MEMORABLE AN EXAMPLE OF TIMELY EUROPEAN INACTION PLEASE LET US NOT ALLOW EUROPE TO BECOME OUR ROLE MODEL WHEN IT COMES TO INTERVENTION BESIDES WHAT IS WRONG WITH THE USE OF LIMITED AIR STRIKES WHY NEED IT LEAD TO AN ESCALATED INVOLVEMENT WHY CAN'T AIR POWER SIMPLY BE THE FULL MEASURE OF OUR INTERVENTION POLICY WHY CAN'T IT BE OUR WAY OF LETTING THE SERBS KNOW WE OPPOSE ETHNIC CLEANSING WHY NOT EVERY NOW AND AGAIN WHEN THEY STICK THEIR HEADS OUT FROM BEHIND THEIR HILLS LAUNCH A SURGICAL STRIKE TO LET THEM KNOW OUR FEELINGS WHY CAN'T THIS POLICY COUPLED WITH ECONOMIC SANCTIONS BE OUR RESPONSE FOR AS LONG AS THE SERBS CONTINUE THEIR AGGRESSION I DARE SAY HAD THE US IN THE SPRING OF 1944 RESPONDED TO THE PLEAS TO BOMB THE GAS CHAMBERS AND CREMATORIA AT AUSCHWITZ OR AT LEAST THE RAIL LINES FROM HUNGARY LEADING TO AUSCHWITZ THE NUMBER OF INNOCENT VICTIMS WHO DIED AT THE HANDS OF THE NAZIS MIGHT HAVE BEEN GREATLY REDUCED AT A MINIMUM WE WOULD NOT TODAY BEAR THE BURDEN OF THAT INACTION 9305270070 930527 PANHANDLE EASTERN REDEMPTION HOUSTON PANHANDLE EASTERN CORP'S UNIT SAID IT WILL REDEEM JUNE 25 ALL OF ITS 100 MILLION PRINCIPAL AMOUNT OF 10 3/8 SINKING FUND DEBENTURES DUE 2011 THE DEBT WILL BE REDEEMED AT 10678 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST PANHANDLE EASTERN AN INTERSTATE NATURAL GAS PIPELINE COMPANY SAID PROCEEDS FROM AN OFFERING OF NINE MILLION NEW COMMON SHARES PRICED THIS WEEK AT 2125 WILL BE USED FOR THE REDEMPTION 9305270069 930527 CLINTON'S POOR GRASP ON PARTY DISCIPLINE HURTS FISCAL PACKAGE FEW FEAR THE PRESIDENT'S WRATH AND FOCUS ON CUTS MEANS HE LACKS TREATS TO OFFER BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN PRESIDENT CLINTON VISITED NEW HAMPSHIRE SATURDAY THE WHITE HOUSE GAVE REP RICHARD SWETT THE ROYAL TREATMENT THE GRANITE STATE DEMOCRAT WAS OFFERED RIDES TO AND FROM WASHINGTON ABOARD AIR FORCE ONE THOUGH HIS SCHEDULE DIDN'T PERMIT HIM TO ACCEPT THE RIDES HE MET WITH MR CLINTON ON THE PLANE ONCE IT LANDED RODE WITH THE PRESIDENT TO HIS SPEECH AND SERVED AS HOST AT A RECEPTION HELD LATER BUT WHEN MR CLINTON CALLED MR SWETT YESTERDAY TO ASK FOR HIS VOTE IN TODAY'S SCHEDULED SHOWDOWN ON THE ADMINISTRATION'S DEFICITREDUCTION PLAN THE CONGRESSMAN BALKED I WILL HAVE TROUBLE VOTING FOR IT WITHOUT ADDITIONAL SPENDING CUTS HE TOLD MR CLINTON ACCORDING TO SWETT SPOKESWOMAN KAY KING THE EPISODE ILLUSTRATES MR CLINTON'S HANDICAP AS HE STRUGGLES TO GET HIS PACKAGE OF UNPOPULAR TAXES AND SPENDING CUTS THROUGH THE HOUSE TODAY HE HAS NO GRIP ON PARTY DISCIPLINE AS HIS POPULARITY FALLS SO DOES HIS ABILITY TO MUSCLE OR SWEETTALK LEGISLATORS FEW FEAR HIS WRATH AND OTHERS QUESTION THE WORTH OF ACCEPTING FAVORS FROM A WOUNDED LEADER AND WITH THE EMPHASIS ON DEFICITCUTTING HE'S LEFT WITH FEW TREATS TO PEDDLE IN EXCHANGE FOR VOTES NEITHER LOVED NOR FEARED BY MOST MEMBERS OF HIS OWN PARTY HE BASES MUCH OF HIS APPEAL TO FELLOW DEMOCRATS ON WHAT MIGHT BE TERMED THE BENJAMIN FRANKLIN ARGUMENT THEY HAD ALL BETTER HANG TOGETHER OR ELSE THEY WILL CERTAINLY HANG SEPARATELY MR CLINTON'S RELATIONSHIP WITH CONGRESSIONAL DEMOCRATS HAS BEEN COLORED BY HIS FIRST FAILED ATTEMPT TO PUNISH SEN RICHARD SHELBY OF ALABAMA WHOSE HOMESTATE POPULARITY SOARED AFTER HIS OPPOSITION TO THE ECONOMIC PACKAGE CAUSED THE WHITE HOUSE TO SLASH A PET PROGRAM AND DELIVER ONLY TWO TICKETS TO A CEREMONY HONORING THE UNIVERSITY OF ALABAMA FOOTBALL TEAM THE FAILED ATTEMPT TO PUNISH SEN SHELBY WAS REFLECTED IN THE WHITE HOUSE REACTION TO SEN DAVID BOREN AND REP DAVE MCCURDY TWO APOSTATE DEMOCRATS WHO HAVE TAKEN THE OFFENSIVE AGAINST THE ECONOMIC PLAN ANGRY CONGRESSIONAL DEMOCRATS AT A WHIPS' MEETING LAST WEEK WANTED TO AX MONEY FROM APPROPRIATION BILLS INTENDED FOR PROJECTS DEAR TO THE TWO OKLAHOMANS' HEARTS BUT THE WHITE HOUSE WANTED NO PART OF RETALIATION FEARING IT WOULD PROVE COUNTERPRODUCTIVE INSTEAD THE WHITE HOUSE SETTLED FOR SOME RHETORICAL SWIPES AT THE WAYWARD DEMOCRATS BUT THE LACK OF VIGOR IN PUNISHING THEM HAS CREATED NEW PROBLEMS NOW MEMBERS OF THE HOUSE WAYS AND MEANS COMMITTEE WHO APPROVED THE TAX INCREASES THAT THEIR FELLOW DEMOCRATS ARE ABANDONING ARE UPSET WHITE HOUSE OFFICIALS SAY PRESIDENT CLINTON WOULD MUCH RATHER USE THE CARROT THAN THE STICK TO WIN THE VOTES HE NEEDS THE PRINCIPAL THING IS TO TRY AND DO IT ON THE AFFIRMATIVE SIDE NOT ON THE NEGATIVE SIDE NOT TO USE PUNISHMENT BUT USE REWARDS SAYS HOWARD PASTER THE PRESIDENT'S CHIEF LOBBYIST MR CLINTON IS DEPENDING A GREAT DEAL ON PERSONAL APPEALS SPENDING MUCH OF THE LAST TWO DAYS ON TELEPHONE CALLS AND MEETINGS WITH DEMOCRATIC LAWMAKERS HIS PITCH IS TO REMIND THEM THAT DESPITE THE TAXANDSPEND LABEL REPUBLICANS HAVE PINNED ON HIS PLAN IT DOES REPRESENT A TRUE ATTEMPT AT DEFICIT REDUCTION HIS APPEALS FOR SUPPORT ESPECIALLY IN FACETOFACE MEETINGS AT THE WHITE HOUSE ARE CRUCIAL FOR MR CLINTON THE DEFICITREDUCTION VOTE IS ONE OF THOSE TESTS TO SEE HOW GOOD HE IS AT THAT SAYS HOUSE REPUBLICAN LEADER ROBERT MICHEL REP MICHEL OBSERVES THAT FOR A LAWMAKER IT'S PRETTY TOUGH TO LEAVE THAT PLACE THE WHITE HOUSE AND KNOW THE PRESIDENT KNOWS YOU'RE A MEMBER OF HIS PARTY AND YOU CAN'T BE WITH HIM BEYOND PLEAS FOR UNITY THOUGH THE WHITE HOUSE HAS PROMISED SOMEWHAT MORE TANGIBLE BENEFITS TO SUPPORTERS AS WELL AT A COKEANDCHEESE RECEPTION FOR HOUSE AIDES AT THE OLD EXECUTIVE OFFICE BUILDING LAST WEEK ADMINISTRATION OFFICIALS PROMISED THE PRESIDENT WOULD REMEMBER HIS BACKERS AT ELECTION TIME WITH ENDORSEMENTS CABINET MEMBERS' VISITS AND OTHER FAVORS GEORGE STEPHANOPOULOS THE WHITE HOUSE COMMUNICATIONS DIRECTOR SAID THE PRESIDENT WOULD EVEN HAPPILY VISIT TELEVISION AND NEWSPAPER EDITORIAL BOARDS IN LAWMAKERS' HOMETOWNS SOME OF MR CLINTON'S ALLIES HAVE BEEN SURPRISED THAT HE HASN'T USED THE WHITE HOUSE'S SOCIAL PERQUISITES MORE EXTENSIVELY AS A LOBBYING TOOL FOR INSTANCE INVITING MORE LAWMAKERS TO THE WHITE HOUSE FOR LATENIGHT DINNERS OR DRINKS WHITE HOUSE OFFICIALS SAY THE PROBLEM IS THAT MR CLINTON SIMPLY DOESN'T HAVE ENOUGH TIME STILL HE HAS HAD SUCH INFORMAL GETTOGETHERS WITH SOME LAWMAKERS INCLUDING HOUSE BUDGET COMMITTEE CHAIRMAN MARTIN SABO AND APPROPRIATIONS COMMITTEE CHAIRMAN WILLIAM NATCHER HE HAS ALSO GOLFED WITH REP JOHN MURTHA THE DEFENSE APPROPRIATIONS CHAIRMAN AND A LONG LIST OF CONGRESSMEN WANT FUTURE GOLFING AND JOGGING DATES 9305270068 930527 USJAPAN TRADE FICTIONS BY KENICHI OHMAE TOKYO ONCE MORE THE US AND JAPAN ARE LOCKED IN A NASTY POLITICALLY SENSITIVE ARGUMENT OVER TRADE IMBALANCES AND ONCE MORE THE CHARGES AND COUNTERCHARGES HAVE VIRTUALLY NO RELEVANCE TO THE ECONOMIC OR EVEN THE POLITICALISSUES LEGITIMATELY AT STAKE US AND JAPANESE OFFICIALS ARE SCHEDULED TO MEET JUNE 7 IN WASHINGTON TO SET A NEW TRADE AGENDA DRIVEN BY ITS OWN PERVERSE ILLOGIC THIS NEW TALK ABOUT TRADE OFFERS UNCOMFORTABLE ECHOES OF YET ANOTHER 20THCENTURY IDEOLOGY THAT FAILED BECAUSE IT LOST ALL MEANINGFUL CONNECTION WITH THE WAY THE WORLD REALLY WORKS WE PRETEND TO MAKE REASONABLE DEMANDS PRESIDENT CLINTON MIGHT WELL HAVE SAID OF HIS RECENT DISCUSSIONS WITH PRIME MINISTER MIYAZAWA AND THEY PRETEND TO RESPOND AT THE HEART OF THE TRADE DISCUSSIONS LIE THREE SEPARATE BUT RELATED CYCLES OF DEMAND AND RESPONSE NONE MAKE SENSE THE FIRST IS PRESIDENT CLINTON'S INSISTENCE THAT JAPAN ALLOW EVEN ENCOURAGE THE VALUE OF THE YEN TO INCREASE AS THE PROVERBIAL VISITING MARTIAN MIGHT NOTE THE YEN WAS AT 360 OR SO TO THE DOLLAR SOME 20 YEARS AGO YESTERDAY IT HIT A RECORD HIGH OF 108 DURING THE INTERVENING PERIOD JAPAN'S TRADE PERFORMANCE DID NOT EXACTLY GO LIMP THE REASON IS SIMPLE EVERY TIME A STRENGTHENING YEN DROVE UP THE COST IN DOLLARS OF JAPANESE GOODS IN THE US AMERICAN PRODUCERS TOOK ADVANTAGE OF THE OPPORTUNITY TO BOOST THEIR OWN PRICES NOT TO HOLD THEM STEADY AND ADD PROFITABLE VOLUME THE LOSERS IN THIS GAME ARE AMERICAN CONSUMERS IF THE CURRENT EXCHANGE RATE REFLECTED MORE ACCURATELY PURCHASING POWER PARITY AS OPPOSED TO TRADE STATISTICS AND JAWBONING THE YEN WOULD BE AROUND 190 A NISSAN MAXIMA WOULD BE PRICED AT ONLY 13000 AND A TOYOTA COROLLA AT ONLY 7500 AND BY THE WAY THE JAPANESE IMPORT ACCOUNT EXPRESSED IN DOLLARS WOULD BE 40 TO 50 LOWER IF THERE IS AN ISSUE HERE IT'S WITH DOMESTIC US PRICING AND NOT WITH RELATIVE CURRENCY VALUES BUT THERE REALLY IS NO ISSUE OR AT LEAST THERE SHOULDN'T BE POLICY MAKERS HAVE NO REASON TO USE CURRENCY RATES AS A MECHANISM FOR FIXING TRADE BALANCES ESPECIALLY WHEN THE CURRENCY IN QUESTION IS THE US DOLLAR THE DOLLAR REMEMBER IS THE INTERNATIONAL SETTLEMENT CURRENCY UNLIKE SAY BRAZIL THE US DOES NOT HAVE TO BORROW FOREIGN CURRENCY TO PAY FOR ITS IMPORTS DOUBTING POLITICIANS SHOULD TRY THE FOLLOWING REALITY CHECK IMAGINE WHAT WOULD HAPPEN IF JAPAN STOPPED ACCEPTING DOLLARS IN PAYMENT FOR ITS EXPORTS AND INSTEAD INSISTED ON RECEIVING YEN THAT IS A BRAZILIAN SITUATION IT IS NOT THE WORLD IN WHICH THE US OPERATES NO ONE WORRIES ABOUT TRADE BALANCES BETWEEN CALIFORNIA AND TEXAS WHICH ARE BOTH FULLY PARTICIPATING MEMBERS OF THE DOLLAR TRADING ZONE SO WHY SHOULD THEY WORRY ABOUT THE BALANCE BETWEEN THE US AND JAPAN WHICH ARE TOO THE BIGGEST PROBLEM HOWEVER WITH USING THE YEN'S VALUE TO REDRESS TRADE IMBALANCES IS THAT THOSE IMBALANCES EITHER DO NOT EXIST THAT IS THEY ARE STATISTICAL ILLUSIONS ONLY OR REFLECT ECONOMIC CHOICES FREELY MADE BY THE US AS I'VE ARGUED FOR YEARS IF YOU ADD TO THE VALUE OF US EXPORTS TO JAPAN THE VALUE OF US PRODUCTION AND SALES IN JAPAN AND DO THE SAME THING WITH JAPANESE GOODS MADE AND SOLD IN THE US IT WOULD WIPE OUT THE UNFAVORABLE IMBALANCE IN THE TRADE OF MANUFACTURED GOODS ON A PERCAPITA BASIS THE AVERAGE JAPANESE CONSUMPTION OF AMERICAN GOODS IS MUCH HIGHER THAN THE AVERAGE AMERICAN CONSUMPTION OF JAPANESE GOODS EQUALLY IMPORTANT TODAY THE LION'S SHARE OF THE AMERICAN ECONOMY IS IN SERVICES MOST OF WHICH ARE CREATED AND CONSUMED DOMESTICALLY AMERICAN SERVICES SOLD ABROAD MUST FOR THE MOST PART BE CREATED AND PROVIDED ABROAD THIS INCLUDES NOT JUST HOTEL ROOMS BUT FOR EXAMPLE COMPUTER SOFTWARE US COMPANIES ARE STRONG AT CREATING VALUE IN THE MARKETPLACE WHETHER IN THE FORM OF HOTEL ROOMS OR SOFTWARE THE TROUBLE IS THAT THESE SERVICES DON'T GET COUNTED IN THE TRADE STATISTICS MEANWHILE WE CONTINUE TO HEAR DEMANDS ABOUT OPENNESS AND ACCESS BASED ON THE WRONG MEASURE STATISTICS OF TRADED GOODS ONLY THE SECOND DESTRUCTIVE CYCLE IN THE CURRENT TRADE DEBATE IS TRIGGERED BY US DEMANDS THAT JAPAN AGGRESSIVELY STIMULATE ITS DOMESTIC ECONOMY THE IMPLICIT ASSUMPTION OF COURSE IS THAT THIS WILL LEAD TO LARGER PURCHASES OF US GOODS AND SERVICES THIS IS PLAIN SILLY WE JAPANESE LIKE PEOPLE EVERYWHERE IMPORT WHEN OTHER COUNTRIES CAN PROVIDE COMPETITIVELY ATTRACTIVE GOODS AND SERVICES AS WE ARE DOING WITH MICROSOFT'S AMERICAN COMPUTER OPERATING SYSTEMS AND INTEL'S CHIPS IN THE SEGMENTS WHERE THIS IS SO FOREIGN MARKET SHARE HAS GROWN CONSISTENTLY NO MATTER WHAT THE STATE OF JAPAN'S DOMESTIC ECONOMY JAPANESE AREN'T GOING TO EAT MORE US BEEF OR DRINK MORE US ORANGE JUICE IF OUR ECONOMY IS IN A GROWTH PHASE THIS ARTIFICIAL STIMULATION OF THE JAPANESE ECONOMY KNOWN HERE AS THE NEW DEAL WILL FOOL VERY FEW CONSUMERS THIS IS WORSE THAN SILLY AS IN THE US PARTS OF JAPAN'S ECONOMY IN PARTICULAR ITS INFRASTRUCTURE ARE OFTEN WASTEFUL EXERCISES IN PORKBARREL POLITICS THAT PUT RESOURCES AGAINST NONEXISTENT NEEDS AND AS IN THE US THIS IS A RECIPE FOR POOR AND BIG GOVERNMENT IT IS ALSO THE CLASSIC ENVIRONMENT FOR CORRUPTION PUSHING JAPAN TO BUILD ROADS THAT NO ONE WILL USE HARBORS THAT WILL HAVE NO TRAFFIC PORTS THAT WILL HAVE NO SHIPPING OR BRIDGES AND TUNNELS THAT CONNECT AREAS BETWEEN WHICH NO ONE TRAVELS IS IN NO ONE'S INTEREST UNLESS OF COURSE ECONOMIC COMPETITION NOW EXTENDS TO WISHING ONE'S TRADING PARTNER THE UNWELCOME BURDEN OF A CORRUPT AND INEFFICIENT GOVERNMENT THE THIRD DESTRUCTIVE CYCLE STEMS FROM THE US DEMAND THAT JAPAN ACCEDE TO SECTORSPECIFIC TARGETS FOR IMPORTS AND THEN MONITOR ALL TRADE PERFORMANCE IN TERMS OF THESE TARGETS YES THEY MAY WORK IN THE SHORT TERM BUT THEY WILL NOT MAKE US COMPANIES STRONGER OR BETTER ABLE TO COMPETE IN JAPAN IN THE LONG TERM IN FACT THEY WILL DO JUST THE REVERSE TARGETS WILL CODDLE US COMPANIES AND ALLOW THEM TO PUT OFF THE DAY THEY MUST DO THE HARD WORK OF DESIGNING COMPETITIVE PRODUCTS AND BUILDING LONGTERM RELATIONSHIPS WITH CUSTOMERS IN A GLOBAL MARKET ANY MANAGER KNOWS THAT UNLESS YOU UNDERSTAND THE CUSTOMER INDEED UNLESS CUSTOMERS SPECIFY YOUR PRODUCTS YOU DON'T HAVE A SUSTAINABLE POSITION IDEOLOGY ASIDE DEBATE ON ALL THESE POINTS IS STERILE AND BANKRUPT THE PREMISES AND ASSUMPTIONS ARE EITHER FALSE OR MISLEADING MORE TO THE POINT THE ENDS TOWARD WHICH SUCH DEBATE IS DRIVEN ARE HOPELESSLY MUDDLED WHAT IS THE REAL ISSUE HERE IS IT THE INACCURATE BUT POLITICALLY EXPLOSIVE FACT OF A TRADE IMBALANCE BUT THAT IS JUST A QUIRKY STATISTICAL ABERRATION IN THE WAY TRADE DATA GET COUNTED IS IT THE LEVEL OF AMERICAN PRESENCE IN JAPAN BUT THAT IS JUST THE NATURAL OUTGROWTH OF CHOICES MADE BY THE US ECONOMY ABOUT THE INDUSTRIES IN WHICH IT WOULD PHYSICALLY EXPORT FROM THE US OR IS IT THE LEVEL OF JAPANESE ACCEPTANCE OF US PRODUCTS BUT IF YOU IGNORE THE SYMBOLS OF RICE AND CONSTRUCTION THE US IS ALL OVER JAPAN FROM CREDIT CARDS AND HOTELS TO COMPUTER CHIPS AND INVESTMENT BANKS TO SOFTWARE AND SHRINK PACKS IF UNCLE SAM WANTS EXPORT STATISTICS TO SOAR HE WILL HAVE TO TELL AMERICAN COMPANIES TO STOP PRODUCING THEIR SERVICES ON SITE IN ASIA OR IS THE REAL ISSUE FOR US POLITICIANS TO SHOW HOW TOUGH THEY ARE THE DANGER IS THAT THE JAPANESE GOVERNMENT EQUALLY SILLY WILL RETALIATE IT WILL DEMAND THAT JAPANESE FINANCIAL INSTITUTIONS WITHDRAW THEIR MONEY FROM THE US BOND MARKET WITHDRAWAL OF ONLY 10 BILLION OF THE TRILLION DOLLARS OF JAPANESE INVESTMENT THERE WOULD BE ENOUGH TO TRIGGER A CRASH DOESN'T IT MAKE SENSE THEN FOR THE US WHICH WAS SO EAGER TO ESTABLISH A DETENTE WITH THE NOWDEFUNCT SOVIET UNION TO SHOW AT LEAST A TRACE OF INTEREST IN A DETENTE WITH ITS LARGEST TRADING PARTNER AFTER CANADA IN MANY COMPLEX WAYS OUR TWO ECONOMIES HAVE TOTALLY PENETRATED EACH OTHER YET WE CAN'T SEEM TO AGREE ON THE FACTS OF INTERNATIONAL TRADE WE CANNOT BEGIN TO TALK MEANINGFULLY ABOUT TRADE PERFORMANCE UNTIL WE AGREE ON WHAT WE ARE TALKING ABOUT AND ON THE PROPER METRICS TO USE IN MEASURING IT UNTIL THEN WE ARE DOOMED TO TRADING ACCUSATIONS AND THAT IS MORE THAN AN ECONOMIC MISFORTUNE IT IS A POLITICAL TRAGEDY IN THE NEW UNCERTAINTIES OF OUR POSTCOLD WAR WORLD THERE IS MUCH THAT THE US AND JAPAN CAN AND SHOULD BE DOING TOGETHER TO SHAPE AND NURTURE THE ENVIRONMENT FOR PEACEFUL AND PROSPEROUS DEVELOPMENT AROUND THE GLOBE BUT WE CANNOT EVEN BEGIN TO TACKLE THESE ISSUES SO LONG AS TODAY'S MISGUIDED DEBATE ON TRADE PERSISTS MR OHMAE IS A PARTNER IN MCKINSEY & CO'S TOKYO OFFICE 9305270067 930527 WHO'S NEWS ACX TECHNOLOGIES INC ACX TECHNOLOGIES INC GOLDEN COLO JOHN D BECKETT 56YEAROLD PRESIDENT OF THE RW BECKETT CORP OF ELYRIA OHIO WAS ELECTED A DIRECTOR OF THIS CERAMICS PACKAGING AND ALUMINUM COMPANY INCREASING THE BOARD'S SIZE TO SEVEN 9305270066 930527 PET INC TO POST SUBSTANTIAL LOSS FOR FISCAL 1993 RESTRUCTURING OTHER COSTS SEEN WIPING OUT PROFIT ANTICIPATED BY JUNE 30 BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL PET INC IN MOVES THAT WILL RESULT IN A BIG LOSS FOR ITS JUNE 30 FISCAL YEAR SAID IT PLANS TO SHED SEVERAL MARGINAL FOOD OPERATIONS TO FOCUS ON CORE BUSINESSES AND IMPROVE ITS FINANCIAL FOOTINGS THE ST LOUISBASED COMPANY SAID THE RESTRUCTURING AND OTHER ONETIME CHARGES WILL TOTAL ABOUT 2155 MILLION IN THE CURRENT FOURTH QUARTER AND WIPE OUT ANTICIPATED EARNINGS FOR THE YEAR THE CHARGES INCLUDE GAINS FROM THE SALE OF AN INTEREST IN A SCANDINAVIAN SNACKFOOD BUSINESS TO PHILIP MORRIS COS FOR 875 MILLION YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PET COMMON CLOSED AT 16875 A SHARE UP 1125 IN FISCAL 1992 PET EARNED 1034 MILLION OR 96 CENTS A SHARE AND FOR FISCAL 1993'S FIRST NINE MONTHS IT EARNED 688 MILLION OR 64 CENTS A SHARE AFTER CHARGES THE COMPANY ALSO ANNOUNCED A MANAGEMENT RESHUFFLING AND THE RESIGNATION OF ITS PET USA PRESIDENT RAYMOND N FELITTO WHO HAD BEEN APPOINTED TO THAT POST LAST SEPTEMBER WHILE THE COMPANY SAID THE MOVES WILL ALLOW IT TO FOCUS ON COREBRANDED BUSINESSES THEY ALSO SHRINK WHAT ALREADY IS ONE OF THE SMALLER MAJOR FOOD MANUFACTURERS PERHAPS MAKING IT MORE VULNERABLE AS A LONGRUMORED TAKEOVER POSSIBILITY PET WHICH HAS BEEN RESHAPING ITS FOOD OPERATIONS SINCE BECOMING INDEPENDENT FROM WHITMAN CORP TWO YEARS AGO ALSO SAID IT WILL RETIRE ITS 325 MILLION OF 935 SENIOR NOTES IT ADDED THAT IT INTENDS TO REPAY THEM PRIMARILY WITH PROCEEDS FROM THE SALE OF ITS APPROXIMATELY 50 INTEREST IN AB ESTRELLA A SWEDISH UNIT OF PHILIP MORRIS EARLY REPAYMENT OF THE NOTES WILL REQUIRE A ONETIME PAYMENT RESULTING IN A CHARGE OF ABOUT 32 MILLION THE COMPANY SAID PET ADDED THAT ITS BOARD ALSO APPROVED AN EXPANDED SHAREREPURCHASE PROGRAM AND ADOPTION OF FASB 106 ACCOUNTING PROVISIONS COVERING PENSION FUNDS THAT ADJUSTMENT WILL BE RETROACTIVE TO LAST JULY 1 AND WILL RESULT IN A NONCASH AFTERTAX CHARGE OF ABOUT 18 MILLION THE COMPANY SAID UNITS TO BE DISPOSED OF INCLUDE PET'S AILING ORVAL KENT FOOD CO REFRIGERATED SALADS AND MEATS BUSINESS IN THE US AND CANADA AS WELL AS HAIN PURE FOOD CO WHICH MARKETS RICE CAKES OILS AND OTHER SPECIALTY HEALTH FOODS FOR THE NINE MONTHS ENDED MARCH 31 SALES OF THE BUSINESSES TO BE SOLD TOTALED 180 MILLION OR ABOUT 13 OF THE TOTAL PET SAID MILES L MARSH CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE BUSINESSES TO BE SOLD DO NOT SUPPORT OUR CORE STRATEGY AND HAVE BEEN UNDERPERFORMING WHILE ESTRELLA IS PROFITABLE AND GROWING SALE OF OUR INTEREST UNLOCKS CASH FLOW AND UNDERLYING VALUE THAT HAD NOT PREVIOUSLY BEEN RECOGNIZED PET'S MAJOR BRANDS INCLUDE OLD EL PASO MEXICAN FOODS PROGRESSO ITALIAN SOUPS VAN DE KAMP'S FROZEN SEAFOOD AND DOWNYFLAKE FROZEN WAFFLES OTHER PRODUCTS INCLUDE PETBRAND CONDENSED MILK PETRITZ FROZEN PIE CRUSTS UNDERWOOD CANNED MEATS AND AC'CENT MEAT TENDERIZER 9305270065 930527 ENVIRONMENT SOME UTILITIES' PLANS TO CUT ENERGY USE COST MORE AND SAVE LESS THAN PROJECTED BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL ELECTRIC UTILITIES HAVE SEEN THE ENVIRONMENTAL LIGHT IN THE PAST FEW YEARS SPENDING ABOUT 2 BILLION ANNUALLY TO HELP CUSTOMERS SAVE ENERGY BUT THE GLOW SURROUNDING THE EFFORT IS DIMMING THE REASONS ARE DIVERSE THE RECESSION HAS CUT PROJECTED DEMAND FOR POWER REDUCING UTILITIES' TASTE FOR CONSERVATION INDUSTRIAL COMPANIES INCREASINGLY COMPLAIN THAT NEGAWATT PROGRAMS OR PROGRAMS TO CUT DEMAND FOR ELECTRICITY ARE LIKE TWISTED ROBIN HOODS TAKING MONEY FROM GOOD CORPORATE CITIZENS AND GIVING IT TO ENERGY WASTRELS AND EMERGING DATA ON NEGAWATT PROGRAMS' ACHIEVEMENTS SUGGEST THEY OFTEN COST MORE AND SAVE LESS ENERGY THAN PROJECTED TOUTED BY PROPONENTS OVER THE PAST FEW YEARS AS A GIANT NEARLY FREE LUNCH THE UTILITY PROGRAMS HAVE INDEED CUT THE NATION'S ENERGY BILLS USING RATEPAYER MONEY UTILITIES HAVE INSULATED HOMES DOTTED FACTORIES WITH ENERGYSAVING LIGHTS AND PUT FIBERGLASS COZIES ON COUNTLESS WATER HEATERS MOST OF THE PROGRAMS HAVE SAVED MONEY AND REDUCED POLLUTION BY CUTTING DEMAND FOR ELECTRICITY MORE CHEAPLY THAN THE ELECTRICITY CAN BE GENERATED BUT IT'S CLEAR SOME OF THE PROGRAMS AREN'T COST EFFECTIVE SAYS PAUL JOSKOW A MASSACHUSETTS INSTITUTE OF TECHNOLOGY ECONOMIST HE ASSERTS THAT MANY UTILITIES UNDERESTIMATE NEGAWATTPROGRAM COSTS BECAUSE THEY USE DUBIOUS ACCOUNTING METHODS IN A RECENT ARTICLE FOR THE JOURNAL SCIENCE HE AND A COLLEAGUE CALCULATED THAT 10 UTILITY PROGRAMS' AVERAGE COST FOR SAVING A KILOWATTHOUR OF ELECTRICITY WAS 34 CENTS THAT'S ABOUT HALF THE TYPICAL COST OF BUYING A KILOWATTHOUR OF ELECTRICITY TODAY BUT IT'S ALMOST 500 HIGHER THAN THE POTENTIAL COST FOR AN AVOIDED KILOWATTHOUR CALCULATED A FEW YEARS AGO BY THE ROCKY MOUNTAIN INSTITUTE A SNOWMASS COLO THINK TANK AND NEGAWATT PROMOTER AMORY LOVINS THE COLORADO INSTITUTE'S RESEARCH DIRECTOR CHARGES THAT DR JOSKOW'S NEGAWATT FIGURES ARE MEANINGLESS NUMBERS BASED ON A SMALL UNSCIENTIFIC SAMPLE OF UTILITY PROGRAMS THAT ARE GENERALLY INFERIOR TO CURRENT PROGRAMS BUT SOME NEGAWATT PROPONENTS CONCEDE THAT DR JOSKOW HAS A POINT UTILITIES OCCASIONALLY PUSH NEGAWATTS TO GET A TREEHUGGING SOLAR BOZO EFFECT RATHER THAN TO MINIMIZE COSTS IN A HARDHEADED WAY SAYS KENNETH KEATING WHO EVALUATES EFFICIENCY PROGRAMS AT THE BONNEVILLE POWER ADMINISTRATION PORTLAND ORE THEY DON'T NECESSARILY WANT TO MEASURE THE RESULTS WHICH IF DISAPPOINTING WOULD MEAN FEWER RATE REWARDS TO FOSTER ENERGY EFFICIENCY A GROWING NUMBER OF STATES ALLOW UTILITIES TO PROFIT FROM NEGAWATT SPENDING THROUGH RATE INCREASES TIED TO THE AMOUNT OF ENERGY SAVED IN A 1991 SURVEY OF VARIOUS UTILITIES' NEGAWATT PROGRAMS DR KEATING AND A COLLEAGUE FOUND THAT MORE THAN HALF OF THEM ACHIEVED LESS ENERGY SAVINGS THAN PROJECTD ALTHOUGH SOME GOT HIGHERTHANEXPECTED SAVINGS GENERALLY THE LEAST EFFECTIVE ONES WERE AIMED AT RESIDENTIAL CUSTOMERS EIGHT OF 11 SUCH PROGRAMS SAVED LESS THAN HALF AS MUCH ENERGY AS PREDICTED ONE REASON IS THE HIHONEYI'MHOME SYNDROME SAYS DR KEATING THAT'S WHEN A SPOUSE RETURNS FROM WORK FINDS A UTILITY REPRESENTATIVE HAS INSTALLED COMPACT FLUORESCENT LIGHTBULBS WHICH OFTEN SEEM DIMMER THAN ADVERTISED AND IN A FIT OF PIQUE PUTS ALL THE OLD BULBS BACK SURVEYS SHOW 15 TO 20 OF ENERGYSAVING BULBS HANDED OUT BY UTILITIES ARE SITTING IN DRAWERS SAYS MITCHELL ROSENBERG A NEGAWATT EXPERT AT XENERGY INC A BURLINGTON MASS ENERGY CONSULTING CONCERN NEGAWATTS ARE ALSO EATEN BY SNAPBACK A TENDENCY OF POWER USE TO RISE AFTER INSTALLATION OF MORE EFFICIENT DEVICES THAT'S WHAT HAPPENED WHEN BONNEVILLE POWER SPONSORED A PROGRAM IN THE MID1980S TO RAISE ENERGY EFFICIENCY IN HOOD RIVER ORE HOMES ABOUT HALF OF THE COMMUNITY'S 6000 HOUSES HAD ELECTRICAL HEAT BONNEVILLE SPENT 11 MILLION TO INSULATE THEM YIELDING BIG ELECTRICITY SAVINGS BUT SOON ELECTRICITY USE ROSEDR KEATING LATER FOUND THE PROJECT ACHIEVED ONLY 43 OF PROJECTED ENERGY SAVINGS THE MAIN REASON HE SAYS WAS THAT MANY RESIDENTS WITH ELECTRIC HEATERS HAD ACTUALLY HEATED MOSTLY WITH WOOD STOVES BECAUSE A NEARBY NATIONAL FOREST PROVIDED CHEAP FUEL BUT WITH BETTER INSULATION THEY COULD HEAT CHEAPLY WITH ELECTRICITY WE FOUND THAT WHEN PEOPLE HAD VERY TIGHT HOUSES THEY GOT TIRED OF SHOVELING ASHES AND SWITCHED TO ELECTRIC HEAT ERASING MUCH OF THE PROGRAM'S ANTICIPATED GAINS HE SAYS BUT SNAPBACK USUALLY ISN'T A MAJOR PROBLEM SNAPBACKERS OFTEN NOTICE THEIR ELECTRIC BILLS ARE RISING AND CUT IT OUT SAYS RICHARD ESTEVES VICE PRESIDENT OF SESCO INC A LAKE FOREST NJ CONCERN THAT IMPLEMENTS RESIDENTIAL NEGAWATT PROGRAMS FOR UTILITIES MORE TROUBLESOME ARE FREE RIDERS PARTICIPANTS IN NEGAWATT PROGRAMS WHO WOULD HAVE INSTALLED MORE EFFICIENT DEVICES WITHOUT UTILITY SUBSIDIES THIS FUNNELS RATEPAYER MONEY INTO THE POCKETS OF PEOPLE WHO SHOULDN'T GET IT UNNECESSARILY RAISING RATES MAINTAINS MIT'S DR JOSKOW SURVEYS INDICATE FREE RIDERS OFTEN ACCOUNT FOR 20 OR MORE OF NEGAWATTPROGRAM PARTICIPANTS SAYS TED FLANIGAN DIRECTOR OF THE RESULTS CENTER AN ASPEN COLO CONCERN THAT STUDIES THE PROGRAMS BUT IN MANY CASES HE ADDS FREE RIDER COSTS ARE OFFSET BY SPILLOVER GAINS IN ENERGY EFFICIENCY THAT UTILITIES DON'T PAY FOR EXAMPLE JACK FALVEY OF PROVIDENCE RI SAYS HE WAS SO IMPRESSED WITH HIS LOWER ELECTRIC BILL AFTER GETTING SIX COMPACT FLUORESCENT BULBS FROM A UTILITY THAT HE BOUGHT 10 MORE ON HIS OWN BUT SUCH CASES PROVIDE LITTLE SOLACE TO COMPANIES THAT FEEL CHEATED BY THE PROGRAMS CONSIDER CAMDEN WIRE CO CAMDEN NY BEFORE ITS LOCAL UTILITY NIAGARA MOHAWK POWER CORP BEGAN NEGAWATT PROGRAMS IN 1990 CAMDEN SPENT WELL OVER 100000 ON HIGHEFFICIENCY LIGHTING AND ELECTRIC MOTOR UPGRADES IN ORDER TO CUT COSTS SAYS GEORGE L MILLER THE COMPANY'S CONTROLLER NOW IT HAS LITTLE TO GAIN FROM THE SYRACUSE NY UTILITY'S NEGAWATT PROGRAMS FOR THE YEAR ENDED MARCH 31 CAMDEN SAYS IT PAID NIAGARA ABOUT 150000 FOR THE PORTION OF ITS ELECTRIC BILLS ATTRIBUTABLE TO THE UTILILTY'S NEGAWATT PROGRAMS MEANWHILE IT GOT NOTHING IN RETURN WE'RE FORCED TO SUBSIDIZE OUR COMPETITORS AS WELL AS OTHERS TO MAKE ENERGYEFFICIENCY IMPROVEMENTS THAT WE HAVE ALREADY FINANCED OURSELVES MR MILLER GRIPED TO REGULATORS AT A RECENT HEARING NIAGARA MOHAWK WON'T COMMENT SPECIFICALLY ON CAMDEN'S CASE BUT SUCH INEQUITIES DO OCCUR CONCEDES A SPOKESMAN TO ADDRESS THEM THE UTILITY RECENTLY STARTED AN EXPERIMENTAL PROGRAM UNDER WHICH INDUSTRIAL CUSTOMERS CAN GET SLIGHTLY LOWER ELECTRIC RATES BY DECLINING TO PARTICIPATE IN UTILITY NEGAWATT PROGRAMS IF THEY OPT OUT HOWEVER REGULATORS REQUIRE THEM TO PERFORM RIGOROUS POTENTIALLY COSTLY ENERGY AUDITS TO IDENTIFY WAYS TO SAVE ELECTRICITY UTILITIES ALSO SAY THEY'RE GETTING MORE BANG FOR THEIR NEGAWATT BUCK LATELY INSTEAD OF GENERAL MAILINGS TO CUSTOMERS ON FLUORESCENT BULB REBATES NORTHEAST UTILITIES HARTFORD CONN TARGETS MAINLY THOSE WHOSE DEMOGRAPHICS ARE SIMILAR TO CUSTOMERS THAT WANTED THE BULBS IN PAST NEGAWATT PROGRAMS NEW ENGLAND ELECTRIC SYSTEM WESTBORO MASS SAYS IT CUT ITS BULB REBATES FOR COMMERCIAL CUSTOMERS TO 40 FROM 100 OVER THE PAST TWO YEARS WITHOUT CURTAILING DEMAND AS THE BULBS' VIRTUES BECAME BETTER KNOWN AND SESCO SAYS ITS WEATHERIZING DOLLARS ARE TARGETED MAINLY AT RESIDENTS WHOSE ELECTRIC BILLS SHOOT UP IN WINTER INDICATING THEY'RE WASTING ELECTRIC HEAT ALL THIS PROMISES TO KEEP DOWN NEGAWATT COSTS BUT AS UTILITIES EXHAUST CHEAP EASY ENERGYSAVING POSSIBILITIES NEGAWATT COSTS WILL PROBABLY RISE CAUTIONS RICK TEMPCHIN A NEGAWATT EXPERT AT THE EDISON ELECTRIC INSTITUTE A UTILITY TRADE GROUP AND EVENTUALLY SO MANY CONSUMERS ARE EXPECTED TO INVEST IN ENERGYEFFICIENT TECHNOLOGY THAT THE UTILITYFUNDED PROGRAMS WON'T BE NEEDED THE PROBLEM HE SAYS IS DETERMINING WHEN THE MARKET HAS TAKEN OVER DO THEY COMPARE AND WHY STEVEN NADEL & KENNETH KEATING ENERGY PROGRAM EVALUATION CONFERENCE 1991 9305270064 930527 BUSINESS BRIEF GAF CORP SETTLEMENT PACT IS REACHED ON ASBESTOSINJURY CLAIMS GAF CORP WAYNE NJ SAID IT REACHED A SETTLEMENT AGREEMENT WITH ATTORNEYS REPRESENTING ABOUT 8700 PEOPLE WITH ASBESTOSINJURY CLAIMS THE PRIVATELY HELD MAKER OF CHEMICALS AND BUILDING PRODUCTS SAID TERMS OF THE SETTLEMENT WERE CONFIDENTIAL GAF NOTED THAT THE INDIVIDUAL PLAINTIFFS REPRESENTED BY THE ATTORNEYS STILL HAVE THE RIGHT TO OPT OUT OF THE SETTLEMENT GAF SAID THE 8700 CLAIMANTS INCLUDE ABOUT 90 OF CASES AGAINST IT THAT WERE PREVIOUSLY CONSOLIDATED WITH OTHER ASBESTOSLIABILITY CASES BEFORE A MARYLAND STATE JUDGE IN BALTIMORE IN JANUARY THE COMPANY TOOK A 200 MILLION AFTERTAX RESERVE TO COVER SETTLEMENT PAYMENTS IN ASBESTOS CLAIMS IT SAID YESTERDAY THAT THE LATEST SETTLEMENT WON'T RESULT IN A CHARGE TO EARNINGS A GAF SPOKESMAN SAID ABOUT 128000 SUITS AGAINST THE COMPANY WERE PREVIOUSLY RESOLVED THERE ARE 64000 OTHER SUITS PENDING INCLUDING 8700 UNDER THE PROSPECTIVE SETTLEMENT 9305270063 930527 LEISURE & ARTS TOP 10 PRIMETIME PROGRAMS COMPILED BY NIELSEN MEDIA RESEARCH COPYRIGHT 1993 9305270062 930527 WHAT IT TAKES TO SUCCEED IN RUSSIA US RETAILER EMPLOYS PATIENCE AND LOCAL ALLY CINCINNATI EYEGLASS VENDOR HAS PARTNER WHO HELPS LINE UP CRUCIAL CONTACTS TEACHING THE NOTION OF PROFIT BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL ST PETERSBURG RUSSIA DEAN BUTLER'S ENTREPRENEURIAL FLAIR ISN'T EASILY DISCOURAGED NOT EVEN IN A PLACE WHERE CONSUMERS SURVIVE ON MONTHLY SALARIES THAT WON'T BUY A TANK OF GASOLINE AND MAIL LETTERS FROM FIVE LOCATIONS IN THE HOPE THAT ONE WILL GET THROUGH ALTHOUGH HE NEARLY ABANDONED THE IDEA AFTER FIRST SURVEYING THE GRIM ECONOMICS HERE THREE YEARS AGO TODAY THE CINCINNATI BUSINESSMAN IS SELLING DESIGNER EYEGLASSES AND PRESCRIPTION SWIMMING GOGGLES TO PRODUCTSTARVED RUSSIANS AND LATVIANS EACH OF HIS TWO VISION EXPRESS STORES ONE HERE AND ONE IN RIGA LATVIA IS RINGING UP SALES OF MORE THAN 10000 A WEEK IN AMERICAN CASH BUSINESS IS SO BRISK THAT POLICE STEPPED IN TO RESTRAIN THE CROWDS WHEN HIS RIGA STORE INTRODUCED CONTACT LENSES FOR 58 A PAIR THAT SMALL STORE NOW DOES MORE BUSINESS THAN THE 30 GOVERNMENTOWNED SHOPS IN LATVIA THE CHIEF TAX OFFICER TOLD MR BUTLER IT ACHIEVES THAT PARTLY BY REMAINING OPEN SEVEN DAYS A WEEK 10 HOURS A DAY FOR CUSTOMERS SUCH AS WALTER YANIS I WILL BECOME ANOTHER TV COMMERCIAL FOR THIS SHOP RAVES MR YANIS A FURNITURE MAKER WHO TRAVELED 30 MILES TO REPLACE HIS CLUNKY DECADESOLD GLASSES HERE I CAN GET SPECTACLES MADE IN AN HOUR VISION EXPRESS IS PROVING THAT DESPITE THE HARSH ECONOMIC LANDSCAPE SMALL COMPANIES CAN MINE RICH REWARDS IN THE REMNANTS OF THE OLD SOVIET UNION WITH ITS HEFTY 40TO50 PROFIT MARGINS VISION EXPRESS HAS BEEN STRIKING PARTNERSHIPS WITH LOCAL BUSINESSPEOPLE TO OPEN STORES IN THE BALTIC STATES THE MOST PROSPEROUS OF THE FORMER REPUBLICS SOON IT WILL GO EVEN TO SIBERIA WHERE AN ASSOCIATE HAS PERSUADED A TIN SMELTER TO PUT UP 300000 FOR A FRANCHISE IN CONTRAST MOST US BUSINESSPEOPLE HAVE FOUND TOUGH GOING HERE MANY GIVE UP IN THE FACE OF HIGH INFLATION PLUMMETING PRODUCTION AND MORIBUND CONSUMER SPENDING MAKING A PHONE CALL CAN TAKE HOURS SHIPMENTS CAN BE TIED UP IN CUSTOMS FOR DAYS IF FOR EXAMPLE A SUPPLIER HAS SUBSTITUTED GREEN FRAMES FOR BLUE AND LIBERATING EMPLOYEES FROM THE OLD MINDSET CAN TRY NERVES VISION EXPRESS'S RUSSIAN MANAGER ONLY RELUCTANTLY LENT TOP EXECUTIVES A FEW SAMPLE FRAMES TO TAKE BACK TO THE US WHAT IF A GOVERNMENT AUDITOR COMES IN AND ASKS WHERE THEY ARE SHE DEMANDED THE KEY TO SUCCESSFUL BUSINESS HERE MR BUTLER FOUND IS A STRONG LOCAL ALLY HE SAYS ONLY A PARTNER NATIVE TO THE SYSTEM CAN FIGURE OUT HOW TO GET GASOLINE NEGOTIATE WITH CUSTOMS OFFICIALS AND MANEUVER THROUGH THE BUREAUCRACY MR BUTLER COULDN'T HAVE LINED UP A MORE KNOWLEDGEABLE PARTNER THAN YURY FAINSTEIN ACTUALLY MR FAINSTEIN FOUND MR BUTLER BEFORE FLEEING RUSSIA IN 1979 BECAUSE OF PERSECUTION OF SOVIET JEWS MR FAINSTEIN HAD BEEN SECOND IN COMMAND AT OPTIKA A STATEOWNED SUPPLIER OF OPTICAL AND HEALTHCARE EQUIPMENT IN THE US HE EVENTUALLY LANDED A JOB IN A CONNECTICUT OPHTHALMOLOGIST'S OFFICE WHERE HE READ ABOUT MR BUTLER AND HIS OPTICAL SUPERSTORE CHAIN LENSCRAFTERS IT WAS CHANGING THE WAY EYEGLASSES WERE SOLD OFFERING GLASSES IN AN HOUR WITH ONSITE EYE EXAMS AND A HUGE SELECTION OF FRAMES ON A MAP IN HIS BASEMENT MR FAINSTEIN CHARTED THE CHAIN'S GROWTH PUTTING A PIN IN EACH OF ITS 240 LOCATIONS AND ENVISIONED A SIMILAR EMPIRE IN HIS HOMELAND THREE YEARS AGO HE APPROACHED MR BUTLER A FORMER PROCTER & GAMBLE CO MANAGER MR BUTLER HIMSELF WAS NO STRANGER TO RISK HE HAD MORTGAGED HIS ANTIQUECAR COLLECTION TO RAISE 245000 TO START HIS FIRST LENSCRAFTERS STORE IN 1983 HE SOON SOLD HIS TINY CHAIN TO US SHOE CORP BUT STAYED ON AS ITS CHIEF EXECUTIVE AND EXPANDED IT RAPIDLY WHEN HE LEFT IN 1987 HE SPURNED A MULTIMILLIONDOLLAR NONCOMPETE OFFER AND IN 1988 HE STARTED A SIMILAR EUROPEAN CHAIN VISION EXPRESS WHICH NOW HAS 100 MILLION IN SALES WHEN MESSRS BUTLER AND FAINSTEIN FLEW TO ST PETERSBURG THREE YEARS AGO THEIR HOPES WERE SHAKEN THE QUALITY OF THE GLASS USED IN LENSES WAS ABYSMAL STORE CLERKS DID CALCULATIONS ON ABACUSES AND THE ECONOMICS SEEMED HOPELESS EVEN WITH THE RUBLE FAR STRONGER AGAINST THE DOLLAR THAN IT IS NOW THE AMOUNT A WORKER MIGHT BE ABLE TO SPEND ON A PAIR OF GLASSES WOULDN'T COVER THE WHOLESALE PRICE INSTEAD OF GIVING UP HOWEVER THE TWO MEN ALONG WITH MR FAINSTEIN'S FORMER BOSS VALERY SOLOVYOV OPENED A STORE IN ST PETERSBURG A YEAR AGO AND IN A SEPARATE SHOWROOM BEGAN SELLING USMADE LENSMAKING MACHINES TO CLINICS ACROSS THE COUNTRY FOR THE STORE IN RIGA WHICH OPENED ONLY A FEW WEEKS LATER MR FAINSTEIN RECRUITED ANOTHER OLD FRIEND OPTIKA'S FORMER LATVIAN DIRECTOR WHO CAPITALIZED ON HIS GOVERNMENT CONTACTS TO ARRANGE FOR THE STORE TO GET TAXFREE STATUS FOR TWO YEARS AND AVOID A 15 IMPORT DUTY MR SOLOVYOV A 54YEAROLD FORMER OLYMPICCLASS WEIGHT LIFTER IS OF THE NEW BREED OF RUSSIAN ENTREPRENEUR AND SPORTS TWO MERCEDESBENZES TO PROVE IT HE HAD ALREADY BOUGHT 45 OPTICAL STORES FROM THE STATE IN RUSSIA IN ADDITION TO SETTING UP SEPARATE REALESTATE AND INSURANCE VENTURES HE BUILT THE SHOWROOM/STORE REHABILITATING A RUNDOWN BUILDING NEAR NEFSKY PROSPECT ST PETERSBURG'S FIFTH AVENUE IN RETURN FOR A 40 INTEREST IN THE JOINT VENTURE VISION EXPRESS PUT IN 615000 WORTH OF EQUIPMENT FRAMES LENSES AND COMPUTERS A PRODUCT OF THE SOVIET MILITARY/INDUSTRIAL COMPLEX MR SOLOVYOV ORIGINALLY GOT INTO OPTICS ON COMMUNIST PARTY ORDERS YOU WEREN'T SUPPOSED TO BE CREATIVE HE SAYS NOW IT IS DIFFERENT BUT NOBODY WILL TEACH YOU FREE ENTERPRISE YOU'VE GOT TO LEARN IT YOURSELF SO FOR THE LAST 10 YEARS I'VE BEEN LEARNING HOW TO SWIM BUT CULTURAL BARRIERS PERSIST MEETING QUIETLY WITH MR BUTLER TO REVIEW FINANCIAL RESULTS MR SOLOVYOV PROPOSED SPLITTING THE PROFITS BETWEEN THEM MR BUTLER TACTFULLY EXPRESSED PLEASURE THAT THE PROFIT MOTIVE WAS ALIVE BUT HE SUGGESTED THAT THEY OUGHT TO DECLARE A DIVIDEND FOR THE HANDFUL OF MAJOR INVESTORS IN VISION EXPRESS MR SOLOVYOV'S RESPONSE WE ARE DOING ALL THE WORK WHY SHOULD WE GIVE THEM THE PROFIT WHEN THEY ARE GETTING SOMETHING ELSE BACK A GOOD BUSINESS ALTHOUGH MOST OF VISION EXPRESS'S PRICES ARE HIGH BY RUSSIAN STANDARDS ABOUT 60 FOR A PAIR OF GLASSES THEY ARE ABOUT HALF WHAT THEY WOULD BE IN THE US THE REASON CHEAP LABOR THE STORE PAYS EMPLOYEES IN RUBLES SALESCLERKS EARN THE EQUIVALENT OF ABOUT 30 A MONTH WHILE THE TOP STORE MANAGER GETS ABOUT 100 A MONTH THE STORES COLLECT BUCKETFULS OF RUBLES BY SELLING SOME LOWEND FRAMES FOR THE LOCAL CURRENCY THE EQUIVALENT OF ABOUT 8 APIECE INCLUDING A 5 EYE EXAM EVEN THAT SUM IS TOUGH FOR MOST CITIZENS WHO EARN LESS THAN 10 A MONTH MANY WALK INTO THE STORES SEE THE PRICES AND LEAVE WE CAN'T BUY ANYTHING IN THIS SHOP SAYS ALEXEI ZALENSKI 48 AN UNEMPLOYED CONSTRUCTION WORKER WHO QUICKLY WALKS OUT OF THE RIGA STORE WITH HIS WIFE AND SON IT WILL BE BETTER TO GO TO A GOVERNMENTSTORE TO BUY GLASSES BECAUSE WE HAVE NO WORK AND NO FOOD GOVERNMENT STORES OFTEN SELL SPECTACLES FOR LESS THAN 1 BUT FOR THE FEW WHO CAN AFFORD TO PAY MORE VISION EXPRESS'S SELECTION OF 750 DESIGNER FRAMES IS A GODSEND IN THE DINGY STATE STORES CUSTOMERS CHOOSE FROM A PALTRY SELECTION OF PREMADE GLASSES IN ONLY ABOUT A DOZEN LENS STRENGTHS SPECIAL ORDERS TAKE MONTHS AND LENSES ARE MADE OF GLASS RATHER THAN WESTERNSTYLE PLASTIC THE CUSTOMERS MANY SHOPPERS SEEM TO BE ENTREPRENEURS OR FAMILIES OF BUSINESSMEN WORKING FOR PRIVATE FIRMS THESE PRICES ARE ABSOLUTELY REASONABLE FOR ME BECAUSE THERE'S NOT ANOTHER SHOP LIKE THIS ONE IN RIGA SAYS LILY ZCITRIASHWILY 22 A LATVIAN HOUSEWIFE IN A STUNNING OUTFIT WHO BUYS 80 LAURA BIAGOTTI GLASSES OTHERS HAVE PENNYPINCHED TO COME UP WITH THE CASH IT'S DIFFICULT TO GET 60 EXTRA BUT I WAS PRESSED TO DO IT BECAUSE OF MY JOB SAYS NERIDA SHARURE 31 A BARBER BY COLLECTING MOSTLY DOLLARS FOR ALL BUT ITS LOWESTQUALITY GOODS VISION EXPRESS IS LARGELY INSULATED FROM THE INFLATION THAT LIFTS PRICES RAPIDLY IN ST PETERSBURG STILL ANOTHER CHALLENGE TRAINING EMPLOYEES TO TREAT CUSTOMERS ATTENTIVELY BECAUSE PEOPLE WERE BEGGARS FOR VERY DEFICIENT PRODUCTS THE SHOPKEEPERS WERE IN POSSESSION OF VERY VALUABLE GOODS AND FELT POWER OVER SHOPPERS UNDER THE OLD SYSTEM MR BUTLER SAYS FOR INSTANCE THE RUSSIAN STORE MANAGER ELENA DROBIAZKO LISTENED TO A CUSTOMERSERVICE PITCH BY VISION EXPRESS EXECUTIVES AND PASSED THE MESSAGE ALONG TO EMPLOYEES BUT SHE FELT COMPELLED TO ADD AND REMEMBER IF YOU DON'T DO IT I'VE GOT POWER TO FIRE YOU THE EXECUTIVES WERE INITIALLY WORRIED ABOUT EMPLOYEE THEFT BUT IN FACT THEY FOUND EMPLOYEES TO BE OBSESSED WITH CONTROLS EACH NIGHT MS DROBIAZKO PUTS A WAX SEAL ON THE DOORS TO THE BASEMENT INVENTORY ROOM CONTAINING 14000 FRAMES A BROKEN SEAL INDICATES SOMEONE HAS ENTERED IMPROPERLY SHE WOULDN'T EVEN LET VISION EXPRESS'S VISITING CHIEF FINANCIAL OFFICER GARY TILLMAN GO DOWNSTAIRS WITHOUT TWO EMPLOYEES ACCOMPANYING HIM FROM APRIL TO DECEMBER THE STORE COULDN'T ACCOUNT FOR JUST SIX FRAMES AND IT DROVE MS DROBIAZKO CRAZY IT'S INCOMPREHENSIBLE THAT THEY'D STEAL BECAUSE THEY ARE TERRIFIED OF THE CONSEQUENCES FROM THE OLD DAYS OF STATERUN ENTERPRISES MR TILLMAN SAYS THEY THINK WE'RE LAX THEFT BY OUTSIDERS HOWEVER IS ANOTHER MATTER MR FAINSTEIN INSISTS THAT PEOPLE IN ORGANIZED CRIME A PLAGUE IN RUSSIA ARE WATCHING THE ST PETERSBURG STORE TO SEE HOW MUCH BUSINESS IT IS DOING HE HAS HIRED ARMED GUARDS FORMER KGB AGENTS TO PICK UP THE MONEY DAILY AND HAS OUTFITTED THEM WITH NIGHTSTICKS AND BADGES FROM NEW YORK CITY TO MAKE THEM LOOK MORE MENACING MR FAINSTEIN WEARS A ROLEX WATCH BUT CARRIES A PISTOL HE HAS BEEN MUGGED TWICE IN ST PETERSBURG OTHER HEADACHES INCLUDE INFURIATING FORMALITIES TO ORDER SUPPLIES AN UMBRELLA AGREEMENT MUST FIRST BE ESTABLISHED FOR REVIEW BY THE RUSSIAN CUSTOMS AGENCY EACH SUBSEQUENT ORDER IS AN AMENDMENT TRANSLATING CONTRACTS INTO SIDE BY SIDE ENGLISH AND RUSSIAN CAN BE EXHAUSTING CHECKING ACCOUNTS DON'T EXIST AND ACCOUNTING HERE IS MORE LIKE PREPARING A TAX RETURN ALL ITEMS MUST FIT INTO ONE PREPRINTED BALANCESHEET FORM FOR TAX PURPOSES NEVERTHELESS THINGS ARE GETTING EASIER CALLING THE US NO LONGER REQUIRES A RESERVATION A DAY AHEAD OF TIME TRANSFERRING DOLLARS FROM LOCAL BANKS TO VISION EXPRESS'S BRITISH OFFICE IS NOW POSSIBLE THOUGH IT CAN TAKE A FEW WEEKS AND GUIDING IMPORTED EQUIPMENT AND FRAME DELIVERIES THROUGH CUSTOMS IS MUCH SMOOTHER SINCE VISION EXPRESS ARRANGED TO GET DECENT GLASSES FOR RUBLES FOR CUSTOMS OFFICIALS HERE MOREOVER MR BUTLER HAS FOUND THAT THERE IS ROOM FOR THE AMERICAN WAY IN RUSSIA AFTER ALL VISION EXPRESS BOUGHT TIME ON STATE TELEVISION AND SHOWED ADS WITH CUSTOMERS RAVING ABOUT HOW THEY HAD GOT EYEGLASSES IN AN HOUR WELLHEELED CUSTOMERS POURED IN AND IN ANOTHER FAIRLY NOVEL MOVE THE STORE LURED PEOPLE WITH DISCOUNTS AND PROMOTIONAL SPECIALS SUCH AS FREE SUNGLASSES WITH EACH NEW PAIR IN THE PAST ANY PRICE DISCOUNT IMPLIED DAMAGED OR SPOILED GOODS NOW MESSRS BUTLER AND FAINSTEIN ARE NEGOTIATING DEALS TO EXPAND VISION EXPRESS ARRIVING IN TALLIN ESTONIA BY OVERNIGHT TRAIN FROM ST PETERSBURG THEY WERE MET BY ANDRES PRES A NEW PARTNER WHO WAS DRIVING A VOLVO AND WEARING A LONDON FOG RAINCOAT MR PRES ANOTHER FORMER OPTIKA EXECUTIVE WANTED TO EXPAND THE SIX EYEGLASS SHOPS HE ALREADY OWNS OVER THE NEXT TWO DAYS THEY DREW UP A DEAL TO OPEN A STORE IN LITHUANIA FOR MR FAINSTEIN WHO SPENDS ABOUT 10 MONTHS A YEAR IN EASTERN EUROPE THE VENTURE HAS MEANT COMING BACK TO THE LEVEL I WAS AT BEFORE TO MY SOCIETY TO MY PEOPLE HE SAYS YOU'RE PART OF THIS REVOLUTION IT'S LIKE A KINDERGARTEN COUNTRY EVERYTHING THEY SEE IS NEW 9305270061 930527 BUSINESS BRIEF QUAKER CHEMICAL CORP CALIFORNIA PLANT TO BE SHUT SECONDPERIOD CHARGE IS SET QUAKER CHEMICAL CORP CONSHOHOCKEN PA SAID IT PLANS TO CLOSE A CALIFORNIA MANUFACTURING FACILITY AND TAKE A RELATED ONETIME CHARGE OF ABOUT 23 MILLION OR 25 CENTS A SHARE IN THE SECOND QUARTER THE PRODUCER OF CHEMICAL SPECIALTIES SAID THE PHASING OUT OF ITS POMONA CALIF OPERATIONS OVER THE NEXT SEVERAL MONTHS WILL BOOST MANUFACTURING EFFICIENCIES AND IMPROVE NET INCOME QUAKER EARNED 33 MILLION OR 37 CENTS A SHARE IN THE 1992 SECOND QUARTER THE POMONA FACILITY CAN BE PHASED OUT BECAUSE THE COMPANY'S INCREASED MANUFACTURING CAPACITY IN NORTH AMERICA IS NOW MORE THAN ADEQUATE TO MEET MARKET DEMAND QUAKER SAID 9305270060 930527 BUSINESS BRIEF CONSOLIDATED RAIL CORP SHAREHOLDERS VOTE TO CHANGE FIRM TO A HOLDING COMPANY CONSOLIDATED RAIL CORP SAID SHAREHOLDERS VOTED TO CREATE A HOLDING COMPANY STRUCTURE AND TO RENAME THE COMPANY CONRAIL INC EFFECTIVE JULY 1 CONRAIL WHICH HAS BEEN THE ONLY MAJOR PUBLICLY HELD RAILROAD WITHOUT A HOLDING COMPANY SAID THE NEW CORPORATE STRUCTURE WILL BETTER ACCOMMODATE GROWTH OPPORTUNITIES AND FACILITATE GREATER ADMINISTRATIVE AND OPERATIONAL FLEXIBILITY THE COMPANY SAID IT DOESN'T CURRENTLY HAVE ANY INTENTION TO ENGAGE IN ANY BUSINESS OTHER THAN TRANSPORTATIONRELATED ACTIVITIES CONRAIL OPERATES A RAIL FREIGHT NETWORK IN 14 NORTHEASTERN AND MIDWESTERN STATES THE DISTRICT OF COLUMBIA AND QUEBEC H WILLIAM BROWN CONRAIL'S SENIOR VICE PRESIDENT FINANCE SAID THE HOLDING COMPANY STRUCTURE COULD RESULT IN MORE ADVANTAGEOUS BORROWING TERMS MEANTIME CONRAIL SAID DONALD W MATTSON 50 YEARS OLD WAS NAMED VICE PRESIDENT TREASURER TRADING POSITIONS WITH JOHN A MCKELVEY 41 WHO WAS NAMED VICE PRESIDENT CONTROLLER 9305270059 930527 INTERNATIONAL BRIEF IRI SPA ITALIAN GROUP POSTS 1992 LOSS THAT'S WORSE THAN EXPECTED ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE SPA ITALY'S GIANT STATE HOLDING COMPANY EXCEEDED FINANCIAL MARKETS' WORST EXPECTATIONS BY REPORTING A LOSS OF 4809 TRILLION LIRE 325 BILLION FOR 1992 IRI BLAMED THE HUGE LOSS WHICH COMPARED WITH A LOSS OF 343 BILLION LIRE FOR 1991 ON THE DOWNTURN IN THE STEEL AND CONSTRUCTION SECTORS AND ON ITS HIGH DEBTSERVICING CHARGES ITS RESULTS FURTHER SUFFERED IRI SAID FROM THE LACK OF 72 TRILLION LIRE IN STATE SUBSIDIES THAT A 1991 LAW HAD ALLOCATED IN INTEREST PAYMENTS AND DEBT REPAYMENTS THE COMPANY NEVER RECEIVED THE FUNDS BECAUSE THE LAW WAS DECLARED UNCONSTITUTIONAL IRI CONTROLS MORE THAN 400 COMPANIES IN SECTORS RANGING FROM BISCUITS TO BANKS AND FROM STEEL TO SATELLITES A NEW PRESIDENT OF IRI WAS APPOINTED LAST WEEK AS ROMANO PRODI AN ECONOMICS PROFESSOR AND PREVIOUSLY IRI PRESIDENT FROM 1982 TO 1989 WAS CALLED BACK TO THE HELM MR PRODI SUCCEEDED FRANCO NOBILI WHO RESIGNED FOLLOWING HIS ARREST IN CONNECTION WITH ITALY'S WIDESPREAD CORRUPTION SCANDAL 9305270058 930527 BUSINESS BRIEF FIRST REPUBLIC BANCORP INC CALIFORNIA THRIFT EXPECTS TO MEET EARNINGS FORECASTS FIRST REPUBLIC BANCORP INC EXPECTS TO MEET ANALYSTS' SECONDQUARTER EARNINGS FORECAST OF 26 MILLION ABOUT FLAT WITH A YEAR EARLIER EXCLUDING A ONETIME CHARGE WILLIS NEWTON CHIEF FINANCIAL OFFICER SAID HE IS COMFORTABLE WITH WALL STREET'S EARNINGS CONSENSUS WHICH WOULD BE EQUAL TO 28 CENTS A SHARE IN LAST YEAR'S SECOND QUARTER THE SAN FRANCISCO THRIFT HAD EARNINGS OF 33 MILLION OR 42 CENTS A SHARE MR NEWTON SAID THIS YEAR'S SECOND QUARTER WILL REFLECT A CHARGE OF 670000 OR SEVEN CENTS A SHARE FOR DEBT RESTRUCTURING FIRST REPUBLIC WRITES MORTGAGES ON CALIFORNIA AND NEVADA PROPERTIES ITS CREDITQUALITY PROBLEMS HAVE BEEN RELATIVELY FEW DESPITE A PLUNGE IN CALIFORNIA REAL ESTATE VALUES NONPERFORMING ASSETS AMOUNTED TO 258 OF ITS TOTAL 12 BILLION IN ASSETS AT THE END OF THE FIRST QUARTER CALIFORNIA LENDERS ARE WONDERING WHEN PROPERTY VALUES WILL START TO RISE AGAIN WE BELIEVE THE BIGGEST PART OF THE DECLINE IN VALUES IS OVER MR NEWTON SAID AND WE'RE BEGINNING TO SEE PURCHASE ACTIVITY INCREASE IN NORTHERN CALIFORNIA WHERE FIRST REPUBLIC DOES 60 OF ITS BUSINESS 9305270057 930527 DELMARVA PROPOSES TAKEOVER WILMINGTON DEL DELMARVA POWER & LIGHT CO SAID IT PRESENTED A PROPOSAL TO PURCHASE THE ELECTRICAL SYSTEM OF THE CITY OF DOVER DEL THE COMPANY SAID THE TAKEOVER COULD TRANSLATE INTO RATE SAVINGS OF 2 MILLION TO 3 MILLION ANNUALLY FOR DOVER CUSTOMERS IT SAID COMMERCIAL AND INDUSTRIAL RATES COULD BE AS MUCH AS 20 LOWER ANNUALLY DELMARVA SAID THE SALE WOULD PREVENT DOVER'S ELECTRIC UTILITY COMPANY FROM TURNING INTO A CASH DRAIN AS COMPETITION IN THE INDUSTRY INCREASES 9305270056 930527 BUSINESS BRIEF GENERAL ELECTRIC CO UNITED PARCEL GIVES FIRM ORDER FOR 68 JET ENGINES UNITED PARCEL SERVICE CO SAID IT ORDERED 68 JET ENGINES FROM GENERAL ELECTRIC CO IN A TRANSACTION VALUED BY INDUSTRY ANALYSTS AT MORE THAN 600 MILLION UPS WHICH DIDN'T DISCLOSE THE VALUE OF THE CONTRACT SAID THE GE CF680C2 ENGINES WILL BE USED TO POWER 30 BOEING 767 FREIGHTERS ORDERED IN JANUARY IN ADDITION CLOSELY HELD UPS SAID IT ACQUIRED OPTIONS FOR AN ADDITIONAL 69 ENGINES THAT WOULD POWER 30 OTHER BOEING 767 FREIGHTERS OPTIONED BY THE PACKAGEDELIVERY COMPANY THE FIRM AND OPTIONED ENGINE ORDERS WOULD HAVE A COMBINED VALUE OF MORE THAN 1 BILLION INDUSTRY ANALYSTS SAID 9305270055 930527 BUSINESS BRIEF HOSPITALITY FRANCHISE SYSTEMS INC CONTROLLING HOLDERS FILE TO SELL 47 MILLION SHARES THE CONTROLLING SHAREHOLDERS OF HOSPITALITY FRANCHISE SYSTEMS INC PARSIPPANY NJ FILED TO SELL 47 MILLION SHARES OF THE HOTEL LICENSING AND FRANCHISING COMPANY AT YESTERDAY'S CLOSING PRICE OF 3025 A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING A SECONDARY OFFERING THAT SIZE WOULD TOTAL ALMOST 1422 MILLION THE COMPANY'S CONTROLLING SHAREHOLDERS WHICH INCLUDE BLACKSTONE CAPITAL PARTNERS LP PAID AN AVERAGE OF 10 A SHARE FOR THEIR HOLDINGS THE COMPANY WENT PUBLIC LAST DECEMBER AT 16 A SHARE HOSPITALITY SAID BLACKSTONE'S STAKE IN THE COMPANY WILL BE ABOUT 43 AFTER THE OFFERING VS ITS CURRENT 60 INTEREST AND IT WILL RETAIN ITS POSITION AS THE COMPANY'S LARGEST SHAREHOLDER THE COMPANY WILL RECEIVE NONE OF THE PROCEEDS SELLING SHAREHOLDERS ALSO INCLUDE ELECTRONIC DATA SYSTEMS CORP 9305270054 930527 BUSINESS BRIEF INTELLIGENT ELECTRONICS INC FIRSTQUARTER NET ROSE 79 MOSTLY ON SALE OF BIZMART INTELLIGENT ELECTRONICS INC REPORTED A 79 RISE IN FISCAL FIRSTQUARTER PROFIT ALTHOUGH MORE THAN HALF OF THE EARNINGS CAME FROM THE MARCH SALE OF ITS BIZMART CHAIN OF OFFICE SUPPLY WAREHOUSE STORES THE EXTON PA COMPUTER RETAILER AND RESELLER REPORTED NET INCOME FOR THE PERIOD ENDED MAY 1 OF 121 MILLION OR 33 CENTS A SHARE UP FROM 68 MILLION OR 18 CENTS A SHARE THE YEAR EARLIER THE MOST RECENT QUARTER HOWEVER INCLUDED A GAIN OF 68 MILLION OR 17 CENTS A SHARE FROM THE SALE OF BIZMART TO KMART CORP'S OFFICE MAX UNIT THE GAIN WAS PARTIALLY OFFSET BY A LOSS FROM THE DISCONTINUED OPERATIONS OF 25 MILLION OR SEVEN CENTS A SHARE IN THE YEARAGO PERIOD THE COMPANY RECORDED A LOSS FROM DISCONTINUED OPERATIONS OF 12 MILLION OR THREE CENTS A SHARE EXCLUDING THE SALE EARNINGS FROM CONTINUING OPERATIONS ROSE 45 TO 83 MILLION OR 23 CENTS A SHARE REVENUE ROSE 24 TO 6169 MILLION THE COMPANY ATTRIBUTED THE GAINS TO INCREASED MARKET SHARE AND STRONG DEMAND FOR PREMIUM COMPUTERS AND PERIPHERALS 9305270053 930527 BUSINESS BRIEF NATIONAL MEDICAL ENTERPRISES INC FRAUD BREACHOFDUTY SUIT AGAINST FIRM IS DISMISSED A CALIFORNIA STATE COURT DISMISSED A FRAUD AND BREACH OF FIDUCIARY DUTY LAWSUIT AGAINST NATIONAL MEDICAL ENTERPRISES INC ON THE GROUNDS THAT THE PLAINTIFFS FAILED TO SUPPORT THE CLAIM AND FAILED TO ADEQUATELY LINK THE COMPANY'S OFFICERS AND DIRECTORS TO THE ALLEGED WRONGDOING PATRICIA AVERY A LAWYER FOR THE PLAINTIFFS SAID HER CLIENTS PLAN TO APPEAL THE DISMISSAL IS THE SECOND LEGAL VICTORY IN LESS THAN A WEEK FOR SANTA MONICA CALIFBASED NME WHICH STILL FACES MANY FEDERAL AND STATE LAWSUITS AND INVESTIGATIONS A CALIFORNIA STATE COURT IN SAN DIEGO LAST THURSDAY DISMISSED A SUIT ALLEGING A CONSPIRACY TO INVOLUNTARILY ADMIT PATIENTS AT NME PSYCHIATRIC HOSPITALS NME CALLED THE LATEST DISMISSAL A SIGNIFICANT POSITIVE DEVELOPMENT NME LAWYER ROBERT FAIRBANK WHO HANDLED THE SUIT SAID THE DISMISSAL HAS NO LEGAL EFFECT UPON A RELATED FEDERAL SECURITIES ACTION IN LOS ANGELES PLAINTIFFS HAVE SURVIVED A MOTION TO DISMISS IN THE FEDERAL CASE THOUGH NO TRIAL DATE HAS BEEN SET 9305270052 930527 BUSINESS BRIEF ICN PHARMACEUTICALS INC US COURT TO HEAR APPEAL OF BROKER UNDER INJUNCTION A FEDERAL APPEALS COURT IN NEW YORK SET THE WEEK OF JUNE 14 TO HEAR CALIFORNIA STOCKBROKER RAFI M KHAN'S APPEAL OF AN INJUNCTION THAT BLOCKS HIS EFFORT TO TAKE CONTROL OF ICN PHARMACEUTICALS INC THE THREEJUDGE PANEL ALSO DENIED MR KHAN'S REQUEST FOR A STAY OF THE INJUNCTION PENDING THE APPEAL AT THE SAME TIME THE COSTA MESA CALIF DRUG COMPANY IS BARRED FROM HOLDING ITS ANNUAL MEETING ISSUING NEW SHARES OR TAKING ANY OTHER STEPS OUTSIDE THE NORMAL COURSE OF BUSINESS ATTORNEYS FOR BOTH SIDES HAILED THE COURT'S ACTIONS MR KHAN'S ATTORNEY MICHAEL LESCH SAID IN A STATEMENT THAT HE EXPECTS THE INJUNCTION WILL BE OVERTURNED ICN'S ATTORNEY ARNOLD I BURNS EXPRESSED SATISFACTION THAT THE INJUNCTION REMAINS IN PLACE EARLIER THIS MONTH THE FEDERAL COURT JUDGE WHO ISSUED THE INJUNCTION FOUND AMONG OTHER THINGS THAT MR KHAN BREACHED A FIDUCIARY DUTY TO ICN THAT WAS RELATED TO HIS ROLE IN HELPING TO SELL SECURITIES OF AN ICN SUBSIDIARY 9305270051 930527 BUSH WITHDRAWS HER NAME FROM RUNNING FOR FCC POST WASHINGTON ANTOINETTE COOK BUSH FOR MONTHS THE FRONTRUNNER TO BECOME FEDERAL COMMUNICATIONS COMMISSION CHAIRMAN PULLED HER NAME FROM CONSIDERATION MS BUSH SENIOR COUNSEL FOR THE SENATE COMMERCE COMMITTEE AND THE STEPDAUGHTER OF CLINTON TRANSITION DIRECTOR VERNON JORDAN GAVE BIRTH MONDAY TO HER FIRST CHILD SERVICE ON THE FCC WOULD HAVE BEEN A GREAT CHALLENGE AND AN HONOR SHE SAID IN A STATEMENT BUT MY LIFE AT THIS TIME IS FILLED WITH OTHER CHALLENGES AND HONORS INCLUDING THE RECENT BIRTH OF MY SON MS BUSH ADDED THAT SHE IS LOOKING FORWARD TO RETURNING TO HER SENATE JOB AFTER MATERNITY LEAVE THE WHITE HOUSE IS SAID TO BE CONSIDERING SEVERAL CANDIDATES FOR FCC CHAIRMAN INCLUDING REED E HUNDT A LONGTIME FRIEND OF VICE PRESIDENT AL GORE AND A SENIOR PARTNER IN THE WASHINGTON LAW FIRM OF LATHAM & WATKINS DAVID LEACH SENIOR TELECOMMUNICATIONS AIDE TO THE HOUSE ENERGY AND COMMERCE COMMITTEE SHARON NELSON OF THE WASHINGTON STATE UTILITIES AND TRANSPORTATION COMMISSION AND CURRENT FCC COMMISSIONER ERVIN DUGGAN 9305270050 930527 SEC CITES VIOLATIONS BY FORMER EMPLOYEE OF AMERICAN EXPRESS NEW YORK THE SECURITIES AND EXCHANGE COMMISSION CHARGED A FORMER AMERICAN EXPRESS CO EMPLOYEE WITH SECURITIESLAW VIOLATIONS IN CONNECTION WITH OVERSTATING THE COMPANY'S PRETAX INCOME IN 1990 AND 1991 THE OVERSTATEMENTS WHICH TOTALED 363 MILLION WERE NOT SIGNIFICANT ENOUGH TO REQUIRE A RESTATEMENT OF EARNINGS AMERICAN EXPRESS DISCLOSED MUCH OF THE ERRORS IN 1991 SOON AFTER REALIZING THE IMPROPRIETIES AT ITS OPTIMA DIVISION AND INCURRED SPECIAL CHARGES AT THE TIME TO REFLECT THE LOSSES IT ALSO NOTIFIED FEDERAL AUTHORITIES THAT RECOGNITION OF LOSSES WERE BEING DELAYED THE EMPLOYEE LARRY LESLIE RESIGNED IN THE SUMMER OF 1991 JUST AS THE COMPANY BEGAN TO LOOK INTO THE IRREGULARITIES WITHOUT ADMITTING WRONGDOING MR LESLIE CONSENTED TO AN INJUNCTION BARRING HIM FROM FUTURE SECURITIESLAW VIOLATIONS AND AGREED TO PAY A CIVIL FINE OF 10000 MR LESLIE COULDN'T BE REACHED FOR COMMENT A SPOKESMAN FOR AMERICAN EXPRESS REITERATED THAT THE COMPANY HAD DISCLOSED THE PROBLEM IN 1991 AND SAID NO ACTION HAD BEEN TAKEN AGAINST THE COMPANY 9305270049 930527 BUSINESS BRIEF AVON PRODUCTS INC FIRM TO PAY 204 MILLION TO SETTLE CASE IN CALIFORNIA THE MARKETER OF COSMETICS BEAUTY AIDS AND RELATED PRODUCTS SAID THE TOTAL PAYMENT WHICH INCLUDES ITS LEGAL FEES IS SLIGHTLY LESS THAN AN INTERIM AWARD ANNOUNCED IN MARCH A SPOKESWOMAN SAID THE COMPANY NEGOTIATED THE SETTLEMENT PAYMENT DOWN SOMEWHAT FROM THE INTERIM AWARD BUT COULDN'T BE MORE SPECIFIC ALSO NO PUNITIVE DAMAGES WILL BE PAID AVON SAID YESTERDAY THE INTERIM AWARD DIDN'T INCLUDE POSSIBLE DAMAGE PAYMENTS THE DISPUTE AROSE OUT OF AVON'S SALE OF ITS RETIREMENT INNS OF AMERICA HEALTHCARE SERVICES UNIT IN 1988 AND 1989 THE UNIT'S CHIEF EXECUTIVE ALSO WAS A MINORITY SHAREHOLDER IN THE UNIT AVON SHARES ROSE AFTER THE ANNOUNCEMENT THEY CLOSED YESTERDAY UP 1125 AT 56625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9305270048 930527 BUSINESS BRIEF RH MACY CO A REVAMPED BUSINESS PLAN IS EXPECTED THIS MORNING RH MACY CO NEW YORK IS EXPECTED TO ANNOUNCE THIS MORNING A REVAMPED BUSINESS PLAN THAT WILL ACCELERATE COST CUTS AND OPERATING IMPROVEMENTS IN A MEETING WITH RETAILINDUSTRY ANALYSTS LAST EVENING THE COMPANY SAID IT WOULD ACCELERATE SEVERAL PREVIOUSLY ANNOUNCED COSTSAVING MEASURES EXPEDITED EFFORTS INCLUDE THE IMPLEMENTATION OF A SINGLE CORPORATEWIDE HEALTHINSURANCE AND BENEFIT PROGRAM THE STREAMLINING OF PURCHASING RESPONSIBILITIES TO ELIMINATE OVERLAP BETWEEN CORPORATE HEADQUARTERS AND DIVISIONAL GROUPS AND THE POSSIBLE ELIMINATION OF A LAYER OF MANAGEMENT ACCORDING TO A PERSON WHO ATTENDED THE BRIEFING FURTHER DETAILS WEREN'T AVAILABLE THE RETAILER WHICH REMAINS UNDER PROTECTION FROM CREDITORS IN BANKRUPTCYCOURT PROCEEDINGS SAID IT WOULD HOLD A NEWS CONFERENCE THIS MORNING 9305270047 930527 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH SEVERAL COMPANIES FILE SUITS OVER EFFORTS TO RESELL SERVICE AMERICAN TELEPHONE & TELEGRAPH CO IS FACING A NUMBER OF LAWSUITS BY SMALL COMPANIES THAT ATTEMPT TO RESELL AN AT&T SERVICE CALLED THE SOFTWARE DEFINED NETWORK IN WASHINGTON ATTORNEY CHARLES H HELEIN AT THE FIRM GALLAND KHARASCH MORSE & GARFINKLE SAID HE IS REPRESENTING SIX SUCH COMPANIES IN SUITS OR COUNTERSUITS AGAINST AT&T HE ADDED THAT HE KNOWS OF NINE OTHER SUCH SUITS FOR EXAMPLE A SMALL COMPANY NAMED TARGET TELECOM INC IN CLIFTON NJ IS SUING AT&T IN FEDERAL COURT IN NEWARK CLAIMING AT&T SABOTAGED ITS BUSINESS THROUGH CONFUSED BILLING AND OTHER MEANS TARGET ACCUSES NEW YORKBASED AT&T AMONG OTHER THINGS OF ATTEMPTING TO MONOPOLIZE THE MARKET IN BASKING RIDGE NJ AN AT&T SPOKESMAN SAID THE COMPANY WAS AWARE OF ONLY TWO OF THE SUITS INCLUDING TARGET'S THE ALLEGATIONS ARE GROUNDLESS HE SAID HE SAID AT&T WILL BE FILING A COUNTERCLAIM SEEKING MONEY ALLEGEDLY OWED IT 9305270046 930527 BUSINESS BRIEF LEASEWAY TRANSPORTATION CORP COMPANY EXPECTS APPROVAL OF NEW REORGANIZATION PLAN LEASEWAY TRANSPORTATION CORP CLEVELAND SAID IT AMENDED ITS PLAN OF REORGANIZATION AND IS HOPEFUL THAT IT CAN EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS SOMETIME THIS SUMMER THE TRUCKING CONCERN WHICH FILED FOR PROTECTION FROM CREDITORS IN DECEMBER AND SUBMITTED ITS FIRST PLAN IN FEBRUARY BELIEVES THE NEW PLAN WHICH ISN'T SIGNIFICANTLY DIFFERENT FROM THE OLD ONE SHOULD BE ACCEPTED BY CREDITORS BUT THE COMPANY SAID IT CAN'T GAUGE CREDITORS' REACTION UNTIL A VOTE WHICH WOULD OCCUR AFTER A JUNE 30 HEARING LEASEWAY ALSO SAID INVESTOR CARL ICAHN WHO HAD HELD A 40 STAKE IN THE COMPANY'S 1325 SUBORDINATED DEBT AND EARLIER WAS CONSIDERED A HOLDOUT SOLD HIS INTEREST TO BEAR STEARNS & CO IN MARCH 9305270045 930527 INTERNATIONAL BRIEF MONTEDISON SPA REMAINING ERBAMONT STAKE IS SOLD TO HOLDBACK HOLDINGS MONTEDISON SPA MILAN SOLD ITS REMAINING 49 STAKE IN ERBAMONT NV TO HOLDBACK HOLDINGS LTD FOR 650 BILLION LIRE 4395 MILLION THE ITALIAN CHEMICAL AND AGROINDUSTRIAL GROUP SAID THE SALE IS ESSENTIALLY AN INTERIM STEP IN ITS PLAN TO SELL ERBAMONT TO PROCORDIA AB OF SWEDEN THE USE OF HOLDBACK HOLDINGS AS A TEMPORARY WAREHOUSE FOR THE SHARES ALLOWS PROCORDIA TO SPREAD OUT THE PAYMENTS ON THE ACQUISITION MEANWHILE MONTEDISION WHICH HAS BEEN LOOKING TO REDUCE DEBT GETS ITS CASH THAT MUCH FASTER ON MARCH 22 PROCORDIA'S PHARMACEUTICAL UNIT KABIPHARMACIA AB ACQUIRED 51 IN MONTEDISON'S PRESCRIPTION DRUGS DIVISION FOR 1282 TRILLION LIRE 8667 MILLION IN CASH AND DEBT HOLDBACK HOLDINGS NOW HAS THE OPTION TO SELL THE REMAINING 49 ERBAMONT STAKE TO PROCORDIA IN 1994 OR 1995 HOLDBACK HOLDINGS IS A FINANCIAL VEHICLE BASED IN THE BRITISH VIRGIN ISLANDS THAT WAS CREATED AD HOC BY A GROUP OF FOREIGN FINANCIAL INSTITUTIONS UNDER THE GUIDANCE OF UNION BANK OF SWITZERLAND 9305270044 930527 ECONOMY BLUE CROSS AND BLUE SHIELD PLANS SET TO FORM 41 BILLION INSURER IN 3 STATES BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO BLUE CROSS AND BLUE SHIELD PLANS IN ILLINOIS IOWA AND SOUTH DAKOTA SAID THEY WILL MERGE A MOVE THAT COULD FORESHADOW MORE SUCH COMBINATIONS UNDER THE NEW HEALTHCARE SYSTEM ENVISIONED BY PRESIDENT CLINTON THE NEW MIDWEST HEALTHINSURANCE CONGLOMERATE WILL COVER 36 MILLION PEOPLE AND TAKE IN ANNUAL REVENUE OF 41 BILLION WHILE PAYING AN ESTIMATED 38 BILLION IN CLAIMS THERE'S LIKELY TO BE LITTLE EFFECT FOR POLICYHOLDERS AT LEAST IN THE FORESEEABLE FUTURE THE MOVE IS BOTH A CONTINUATION OF SUCH MARRIAGES AMONG NONPROFIT HEALTH INSURERS AS WELL AS A HARBINGER OF FURTHER MERGERS UNDER THE EXPECTED ERA OF MANAGED COMPETITION BEING FOSTERED BY THE PRESIDENT THERE ARE BROAD TRENDS OF GETTING LARGER TO GET READY FOR MANAGED COMPETITION SAID BOB HUNTER PRESIDENT OF THE NATIONAL INSURANCE CONSUMER ORGANIZATION LARGER COMPANIES WILL BE THE ONES ABLE TO COMPETE SUCH BIGGER HEALTH INSURERS WILL HAVE GREATER CLOUT IN NEGOTIATING WITH HOSPITALS AND DOCTORS UNDER WHAT IS EXPECTED TO BE THE CLINTON PLAN RAYMOND F MCCASKEY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HEALTH CARE SERVICE CORP THE CORPORATE NAME FOR THE ILLINOIS PLANS AGREED THE DRIVING FORCE OF YESTERDAY'S ANNOUNCEMENT WAS A DESIRE TO BE A DOMINANT PLAYER IN THE MANAGEDCOMPETITION SYSTEM HE CITED OTHER FACTORS AS WELL HEALTH INSURERS WILL BE INVESTING LARGE SUMS IN EQUIPMENT TO PROCESS CLAIMS ELECTRONICALLY SUCH INVESTMENTS SAID MR MCCASKEY WILL REQUIRE GREATER REVENUES THAT CAN BE REALIZED ONLY THROUGH MERGERS FURTHERMORE THE GOVERNMENT'S MEDICARE SYSTEM CONTRACTS WITH BLUE CROSSBLUE SHIELD TO HANDLE CLAIMS PROCESSING AND IS SEEN INCREASINGLY LIKELY TO WANT TO DEAL WITH FEWER COMPANIES THERE HAVE BEEN CASES OF CORPORATE MISMANAGEMENT AND NEARINSOLVENCY AT SOME OF THE NATION'S BLUE CROSS PLANS SENATE INVESTIGATORS HAVE FOUND AND SUCH SITUATIONS ARE EXPECTED TO CAUSE WEAKER PLANS TO BE FOLDED INTO MORE SOLVENT ONES THE MAJORITY OF THE BLUE CROSSBLUE SHIELD PLANS IN THE COUNTRY ARE UNSTABLE OR HEADED FOR DISASTER IN THE NEXT FEW YEARS SAID PETER BOLAND PRESIDENT OF BOLAND HEALTHCARE INC IN BERKELEY CALIF A HEALTHCARE CONSULTING FIRM USED BY THE INSURANCE INDUSTRY BETH MORROW DIRECTOR OF INSURANCERATING SERVICES FOR STANDARD & POOR'S CORP SAID IT IS TOO EARLY TO KNOW WHAT THE FINANCIAL SITUATION OF THE COMBINED MIDWEST PLANS IS LIKELY TO BE MR MCCASKEY HOWEVER SAID FINANCIAL WEAKNESS ISN'T A FACTOR IN THE MERGER WE HAVE SUBSTANTIAL FINANCIAL RESOURCES AND ARE WELL ABOVE AVERAGE IN THE BLUE CROSSBLUE SHIELD SYSTEM HE SAID BLUE CROSS PLANS IN INDIANA AND KENTUCKY ALSO RECENTLY DISCLOSED THEIR INTENTIONS TO MERGE THESE AREN'T THE FIRST SUCH MERGER EFFORTS BUT THE TREND IS EXPECTED TO ACCLERATE UNDER THE CLINTON HEALTHCARE SYSTEM I EXPECT THERE WILL BE A LOT MORE DISCUSSION ABOUT POSSIBLE MERGING AMONG OTHER BLUE CROSS PLANS IN THE NEAR FUTURE SAID MR MCCASKEY DAVID HIMMELSTEIN A HARVARD UNIVERSITY ASSOCIATE PROFESSOR OF MEDICINE AND A PROMINENT ADVOCATE OF NATIONAL HEALTH CARE SAID IN NEGOTIATING WITH PROVIDERS THE BIGGER THE STICK YOU BRING TO THE TABLE THE BETTER OFF YOU ARE 9305270043 930527 BUSINESS BRIEF BEAR STEARNS COS UNIT SETTLES FEE DISPUTE WITH RUSSIAN AUTO MAKER BEAR STEARNS & CO SAID IT REACHED A SETTLEMENT WITH RUSSIAN AUTO MAKER AVTOVAZ REGARDING A DISPUTE OVER FEES FOR BEAR STEARNS'S SERVICES AVTOVAZ LOCATED IN TOLYATTI RUSSIA 500 MILES SOUTHEAST OF MOSCOW HIRED BEAR STEARNS IN JUNE 1991 TO PROVIDE TECHNICAL ASSISTANCE WITH PRIVATIZATION LAST NOVEMBER BEAR STEARNS FILED SUIT IN NEW YORK CHARGING THAT AVTOVAZ OWED IT 19 MILLION IN FEES AND OTHER DAMAGES BEAR STEARNS DECLINED TO DISCLOSE THE TOTAL SUM IT SOUGHT IN THE CASE THE SETTLEMENT TERMINATES THE LEGAL ACTION AND BEAR STEARNS SAID REPRESENTATIVES OF BOTH COMPANIES EXPRESSED THEIR SATISFACTION WITH THE TERMS OF THE SETTLEMENT WHICH WERE NOT DISCLOSED BEAR STEARNS AN INVESTMENT BANK AND SECURITIES BROKERAGE AND TRADING FIRM IS A UNIT OF BEAR STEARNS COS 9305270042 930527 BUSINESS BRIEF CODA ENERGY INC BANK DOUBLES CREDIT LINE FOR COMPANY'S ACQUISITIONS DALLASBASED CODA ENERGY INC SAID ITS BANK AGREED TO DOUBLE THE ENERGY COMPANY'S LINE OF CREDIT TO 100 MILLION THE AGREEMENT IS WITH NATIONSBANK OF TEXAS A UNIT OF NATIONSBANK CORP OF CHARLOTTE NC HOWEVER CODA SAID THAT BANK ONE TEXAS A UNIT OF BANC ONE CORP COLUMBUS OHIO HAS AGREED TO COVER 25 OF THE CREDIT LINE THE NEW CREDIT AGREEMENT ALSO EXTENDS THE TERMS TO MAY 31 1997 DOUG RAMSEY ASSISTANT TO CODA'S PRESIDENT SAID THE ADDITIONAL CREDIT LETS THE COMPANY CONTINUE OUR ACQUISITION AND EXPLOITATION PROGRAM CODA ACQUIRES DEVELOPS AND PRODUCES OIL AND NATURAL GAS PROPERTIES BUT IS NOT INVOLVED IN ENERGY EXPLORATION ACTIVITIES NO LARGE PURCHASE IS IMMINENT HE SAID BUT CODA HAS AN ACTIVE ACQUISITION PROGRAM OUR ACQUISITION GROUP LOOKS AT ABOUT 300 PACKAGES A YEAR THAT HAVE BEEN PUT UP FOR SALE THE AMOUNT OF CREDIT GIVES US SOME FLEXIBILITY WHETHER IT'S TWO OR THREE SMALLER DEALS OR ONE BIG ONE 9305270041 930527 INTERNATIONAL BRIEF SHARP CORP PRETAX PROFIT DROPPED 30 NET FELL 24 IN FISCAL YEAR SHARP CORP A LEADING JAPANESE MAKER OF CONSUMER ELECTRONICS AND OFFICE AUTOMATION EQUIPMENT REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT SLID 30 IN THE FISCAL YEAR ENDED MARCH 31 TO 5159 BILLION YEN 472 MILLION FROM 7357 BILLION YEN A YEAR EARLIER NET INCOME WAS DOWN 24 TO 2961 BILLION YEN OR 2772 YEN A SHARE FROM 3906 BILLION YEN OR 3661 YEN A SHARE SALES WERE DOWN 26 TO 1478 TRILLION YEN FROM 1518 TRILLION YEN BUSINESS CONDITIONS WERE ROUGH DURING THE YEAR WITH INCREASED UNEMPLOYMENT AND REDUCED GROWTH IN WORKERS' SALARIES WEIGHING ON PERSONAL DEMAND SHARP SAID THE COMPANY SAID IT SAW SIGNS OF RECOVERY IN THE US BUT SAID ITS PERFORMANCES ELSEWHERE WERE LACKLUSTER FOR THE CURRENT FISCAL YEAR SHARP EXPECTS PROFIT AND SALES TO INCH UP AS THE DOMESTIC ECONOMY RECOVERS SPURRED BY GOVERNMENT STIMULUS MEASURES BUT THE COMPANY SAID TRADE TENSIONS THE SLUGGISH WORLD ECONOMY AND THE STRENGTH OF THE YEN COULD ALL HURT RESULTS 9305270040 930527 COMMODITIES PREDICTIONS OF BIG DECLINE IN CUBA'S SUGAR CROP LEAVE MARKET UNFAZED SURE OF AMPLE SUPPLIES BY WARREN GETLER AND JOSE DE CORDOBA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FORECASTS OF A POTENTIALLY HUGE DROP IN CUBA'S SUGAR CROP LEFT THE SUGAR FUTURES MARKET UNFAZED THE ACTIVE JULY SUGAR CONTRACT FELL 066 CENT YESTERDAY ON NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE TO 1112 CENTS A POUND TRADERS SAID THE NEW YORK FUTURES MARKET REMAINS CONVINCED AMPLE SUGAR WILL BE AVAILABLE FOR DELIVERY FROM BRAZIL AND CENTRAL AMERICA DESPITE ANY POTENTIAL SHORTFALL IN CUBAN PRODUCTION THIS WEEK THE CUBAN GOVERNMENT SAID CUBA'S CRUCIAL SUGAR CROP WILL FALL TO 42 MILLION TONS THE LOWEST LEVEL IN 30 YEARS AND A 40 DROP FROM LAST YEAR'S CROP OF SEVEN MILLION TONS OUR HARVEST THIS YEAR WILL BE 42 MILLION TONS ALBERTO BETANCOURT ROA THE HEAD OF THE CUBAZUCAR THE STATE SUGAR COMPANY TOLD REUTERS AS A RESULT CUBA EXPECTS TO SELL SOME TWO MILLION TONS LESS THAN THE 56 MILLION TONS TO 57 MILLION TONS IT SOLD IN 1992 AND IS TAKING STEPS TO POSTPONE OR CANCEL THE MAJORITY OF ITS SUGAR CONTRACTS WITH THE EXCEPTION OF AN AGREEMENT TO SWAP 15 MILLION TONS OF SUGAR FOR RUSSIAN OIL STEPHEN PLATT AN ANALYST WITH DEAN WITTER IN NEW YORK QUESTIONED WHETHER THE CUBAN CROP WOULD TURN OUT TO BE AS SMALL AS PROJECTED BY HAVANA WHEN I SAW THAT NUMBER TUESDAY I WAS A LITTLE BIT SKEPTICAL HE SAID IF THE CROP DOES TURN OUT TO BE AS LOW AS 42 MILLION TONS OR SO IT WILL PROVIDE SUPPORT TO PRICES UNDER 11 CENTS A POUND AND IT WILL START TO ATTRACT SOME BUYING INTEREST BACK TO THE CASH MARKET SUGAR PRICES HAVE RECENTLY FALLEN FROM LIFEOFCONTRACT HIGHS ABOVE 13 CENTS A POUND REACHED IN MIDMAY MR BETANCOURT ROA SAID THE SMALL CROP WAS DUE TO BAD WEATHER AND LACK OF RESOURCES SINCE THE COLLAPSE OF THE SOVIET BLOCK CUBA'S IMPORTS OF SPARE PARTS FUEL AND FERTILIZERS HAVE PLUMMETED AS A RESULT CUBAN PRODUCTION HAS BEEN PARALYZED ACCORDING TO CUBAN ESTIMATES THE COUNTRY'S GROSS DOMESTIC PRODUCT FELL 24 IN 1991 AND ANOTHER 15 IN 1992 FOREIGN CURRENCY REVENUE FELL FROM 81 BILLION IN 1989 TO 22 BILLION LAST YEAR A US GOVERNMENT ANALYST SAID THE SMALL CROP WOULD RESULT IN A LOSS OF SOME 400 MILLION ALTHOUGH PRICES ON THE WORLD MARKET ARE ABOUT TWO OR THREE CENTS HIGHER THAN LAST YEAR LAST YEAR SUGAR ACCOUNTED FOR 63 OF CUBA'S 21 BILLION IN EXPORTS ACCORDING TO US GOVERNMENT ESTIMATES MOST CUBA ANALYSTS WHO WERE EXPECTING THE SUGAR CROP OF ABOUT 55 MILLION TONS WERE STUNNED BY THE SIZE OF THE DECLINE MAINTAINING SUGAR PRODUCTION IS A TOP PRIORITY OF FIDEL CASTRO'S ECONOMICALLY BELEAGUERED GOVERNMENT IT'S ANOTHER DISASTER SAID CARMELO MESALAGO A PROFESSOR OF CUBAN STUDIES AT THE UNIVERSITY OF PITTSBURGH BUT THE MARKET SHRUGGED OFF THE NEWS EVERYBODY KNEW IT WAS GOING TO BE DOWN AND DOWN SHARPLY SAID SANDRA KAUL A COMMODITIES ANALYST AT SHEARSON LEHMAN BROS IN NEW YORK IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS THE SILVER FUTURES MARKET SHRUGGED OFF THE RELEASE OF A POTENTIALLY BULLISH REPORT FORECASTING TIGHTENING SUPPLIES WITH THE ACTIVE JULY CONTRACT CLOSING EIGHT CENTS LOWER AT 4563 AN OUNCE TRADERS SAID THE SHARP DROP IN SILVER FUTURES PRICES WAS PRIMARILY THE RESULT OF PROFITTAKING ON NEW YORK'S COMMODITY EXCHANGE FOLLOWING A ROBUST 93 CENTANOUNCE CLIMB TUESDAY THE DROP WAS ALSO THE RESULT OF WEDNESDAY'S WEAKNESS IN GOLD SAID GEORGE MILLINGSTANLEY AN ANALYST WITH SHEARSON LEHMAN BROTHERS IN NEW YORK GOLD FOR JUNE DELIVERY SETTLED AT 37530 AN OUNCE OFF 340 ON THE COMEX THE SILVER INSTITUTE A WASHINGTON DCBASED TRADE GROUP REPRESENTING MINING AND REFINING COMPANIES SAID THAT DEMAND FOR SILVER COULD EXCEED SUPPLY THIS YEAR BY 1432 MILLION OUNCES UP SHARPLY FROM THE 886 MILLION OUNCE DEFICIT SEEN LAST YEAR GRAINS AND SOYBEANS PRICES OF SOYBEAN FUTURES CONTRACTS ROSE AS SOME ANALYSTS TRIMMED THEIR PROJECTIONS OF THE SOYBEAN HARVEST UNDERWAY IN ARGENTINA A MAJOR COMPETITOR OF US EXPORTERS SOYBEAN PRICES WERE ALSO LIFTED BY A WAVE OF CONTRACT BUYING BY SOME LARGE US GRAIN CONCERNS IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR JULY DELIVERY ROSE 525 CENTS A BUSHEL TO SETTLE AT 61275 A BUSHEL CORN FUTURES PRICES REBOUNDED SLIGHTLY THE DEPRESSED CASH PRICE FOR CORN ACROSS THE MIDWEST IS DISCOURAGING FARMERS FROM SELLING THEIR CROPS TO LOCAL ELEVATORS ENERGY GASOLINE FUTURES TURNED SHARPLY LOWER IN HEAVY TRADING AFTER AN INDUSTRY REPORT OF A BIG INCREASE IN US INVENTORIES OF THE FUEL UNLEADED GASOLINE FOR JUNE DELIVERY DROPPED ONE CENT TO 5792 CENTS A GALLON TOMORROW'S EXPIRATION OF THE JUNE CONTRACT MAY HAVE BEEN A FACTOR BUT JULY GASOLINE ALSO FELL 088 CENT TO 5821 CENTS THE GASOLINE MARKET ALREADY WAS SURPRISINGLY WEAK DESPITE THE NEARNESS OF THE MEMORIAL DAY WEEKEND WHICH SIGNALS THE START OF THE SOCALLED DRIVING SEASON ADDING TO THE PRESSURE WAS THE AMERICAN PETROLEUM INSTITUTE'S LATE TUESDAY REPORT THAT GASOLINE INVENTORIES ROSE FOUR MILLION BARRELS LAST WEEK ROBERT BOSLEGO A WINCHESTER MASS ANALYST CALLED THE INVENTORY RISE A MAJOR NEGATIVE 9305270039 930527 WORLD MARKETS TOKYO PRICES JUMP 13 DESPITE YEN'S RISE TO HIGHS AGAINST DOLLAR LONDON STOCKS CLIMB A WALL STREET JOURNAL NEWS ROUNDUP TOKYO EQUITIES SCORED SOLID GAINS WEDNESDAY DESPITE THE JAPANESE YEN'S RISE TO RECORD HIGHS AGAINST THE US DOLLAR DURING THE SESSION LONDON STOCKS ENDED NARROWLY HIGHER BOLSTERED BY LATE POSITIONSQUARING IN THE FUTURES MARKET WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10774 UP 122 REFLECTING INCREASES IN MARKETS IN THE AMERICAS AND EUROPE AND IN THE ASIA/PACIFIC REGION SAVINGS AND LOAN STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10066 UP 409 OR 424 WITH GLENFED OF THE US POSTING A 25 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 13029 DOWN 125 OR 095 WITH ECHO BAY MINES OF CANADA SLIDING 67 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 15560 POINTS TUESDAY ADVANCED 26423 OR 13 TO 2089599 WHICH ALSO WAS THE DAY'S PEAK ON THURSDAY THE NIKKEI INDEX ROSE 15340 POINTS TO CLOSE THE MORNING SESSION AT 2104939 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 470 MILLION SHARES UP FROM 437 MILLION SHARES ON TUESDAY GAINERS SWAMPED LOSERS 743292 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 760 POINTS TUESDAY ADVANCED 2143 ALSO 13 TO 163972 AS THE YEN PUSHED TO A HISTORIC HIGH OF 10865 TO THE DOLLAR A SCENARIO THAT TYPICALLY WOULD PROMPT A HEAVY SELLOFF OF STOCKS INVESTORS BID UP PRICES OF FINANCIALSECTOR ISSUES ON EXPECTATIONS THAT THE YEN'S STRENGTH WILL PAVE THE WAY FOR LOWER INTEREST RATES THIS WOULD BOOST THE FLOW OF FUNDS TO THE STOCK MARKET FROM THE BOND AND MONEY MARKETS PARTICIPANTS DIDN'T RUSH TO DUMP EXPORTERS WHICH MAY BE HURT BY THE YEN'S APPRECIATION OIL SHARES WHICH BENEFIT FROM A STRONGER YEN ADVANCED THE TOKYO MARKET WAS LIFTED PARTLY BY BUYING OF BANKS AND OTHER FINANCIAL SHARES BY JAPANESE INVESTORS AND COVERING OF THOSE ISSUES SOLD SHORT BY US HEDGE FUNDS TO REPLACE THE SHARES PREVIOUSLY BOUGHT FOR SHORT SALES OR BETS ON PRICE DECLINES CEMENT ISSUES ALSO ROSE STRONGLY IN HEAVY VOLUME AS INVESTORS EXPECTED THOSE SHARES TO BENEFIT FROM PUBLICWORKS OUTLAYS AND LOWPRICED LARGECAPITALIZATION SHARES ADVANCED AHEAD OF MORE EXPECTED BUYING BY BIG INVESTMENT TRUST FUNDS THAT ARE TO BE LAUNCHED TOMORROW A LATE BOUT OF INDEXLINKED ARBITRAGE BUYING HELPED THE NIKKEI INDEX CLOSE AT ITS HIGH FOR THE DAY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 92 POINTS TO 28469 WHICH ALSO WAS THE INTRADAY HIGH ADVANCING ISSUES LED DECLINING ISSUES 5633 THE FT 30STOCK INDEX ADDED 21 POINTS TO 22086 VOLUME WAS 6268 MILLION SHARES COMPARED WITH 5912 MILLION SHARES A DAY EARLIER THE LONDON GAIN WAS THE THIRD IN A ROW THOUGH THE UNDERLYING TONE REMAINED CAUTIOUS ABOUT BRITAIN'S ECONOMIC RECOVERY AND THE MARKET LACKED DIRECTION WITHOUT NEW ECONOMIC INDICATORS OR CORPORATE RESULTS PLAYERS IN THE FUTURES PIT WERE NERVOUS ABOUT MAINTAINING POSITIONS AND SQUARED THEM JUST BEFORE THE CLOSE OF THE STOCK MARKET THE BOURSE'S HESITANT TONE REFLECTED A LACK OF CLEAR SIGNALS TO BACK UP RECENT STATEMENTS BY GOVERNMENT OFFICIALS THAT THE BRITISH RECESSION IS OVER AND THAT RECOVERY IS AT HAND AND COMPANIES HAVE BEEN CAUTIOUS RATHER THAN UPBEAT RECENTLY ABOUT THEIR PROSPECTS IN FRANKFURT SHARE PRICES ROSE IN A TECHNICALLY DRIVEN SESSION WITH LOW VOLUME THE DAX 30STOCK INDEX GAINED 382 POINTS TO 162200 OF THE DAX STOCKS 16 ROSE AND 10 FELL IN PARIS STOCKS ATTEMPTED A RALLY BUT QUICKLY RETREATED AND FINISHED LITTLE CHANGED AS INVESTORS TOOK PROFITS FROM STRONG GAINS IN THE PREVIOUS TWO SESSIONS AMSTERDAM PRICES MOSTLY ROSE UNDERPINNED BY A STEADY DOLLAR AND WALL STREET'S HIGHER PRICES A DAY EARLIER MILAN STOCKS FELL BROADLY AS SELLING PRESSURE IN THE AUTO SECTOR SPILLED OVER INTO THE REST OF THE EXCHANGE THOUGH WITH CAUTION PREVAILING SOME INVESTORS TOOK PROFITS AND VOLUME WAS DOWN MARKEDLY THUS SELLING PUSHED PRICES DOWN FURTHER THAN IF TURNOVER HAD BEEN MORE ACTIVE MADRID SHARES CLOSED AT A HIGH FOR THIS YEAR AFTER SHRUGGING OFF VOLATILITY FOR THE SPANISH PESETA AND ITS SHARP WEAKENING ON FOREIGNEXCHANGE MARKETS STOCKS WERE PROPELLED UP BY A CUT IN SPANISH INTEREST RATES AND EXPECTATIONS FOR FURTHER RAPID REDUCTIONS AND THE BANKING SECTOR POSTED THE STRONGEST PERFORMANCE STOCKHOLM PRICES FELL AS FORESTRY ISSUES TUMBLED ON DISAPPOINTING CORPORATE EARNINGS BRUSSELS STOCKS GAINED AS INVESTORS TOOK POSITIONS ON THE SECOND DAY OF THE NEW TWOWEEK TRADING CYCLE SYDNEY SHARES SOARED TO THEIR HIGHEST LEVEL SINCE OCTOBER 1989 BUOYED BY TOKYO'S SOLID RISE AND BUYING BY OVERSEAS INVESTORS PARTICULARLY BLUE CHIPS AND GOLD ISSUES HONG KONG STOCKS FELL AS PROFITTAKING SLIGHTLY ERODED SIZABLE GAINS BUILT UP IN THE PREVIOUS FOUR SESSIONS WHILE MOST INVESTORS ADJUSTED RATHER THAN SOLD POSITIONS SINGAPORE SHARES FIRMED THOUGH THE MARKET WASN'T AFFECTED BY A REPORT THAT SINGAPORE'S FIRSTQUARTER GROSS DOMESTIC PRODUCT REGISTERED 71 ANNUALIZED GROWTH IN LINE WITH EXPECTATIONS SEOUL PRICES CLIMBED ON EXPECTATIONS OF A BETTER SOUTH KOREAN RELATIONSHIP WITH NORTH KOREA SPARKED BY NEWS REPORTS THAT NORTH KOREA PROPOSED AN EXCHANGE OF SPECIAL PRESIDENTIAL ENVOYS THE BEST PERFORMERS WERE TRADERELATED STOCKS WHICH COULD BENEFIT FROM AN IMPROVED RELATIONSHIP BETWEEN THE TWO COUNTRIES TAIPEI SHARE PRICES ROSE SLIGHTLY IN A TECHNICAL REBOUND AFTER SIX SESSIONS OF DECLINES MANILA STOCKS ADVANCED ON BUYING BY OVERSEAS INVESTORS AMONG CORPORATE DEVELOPMENTS IN TOKYO FANUC ROSE 20 YEN TO 4180 YEN 3828 THOUGH THE ELECTRONIC EQUIPMENT MAKER'S UNCONSOLIDATED PROFIT FOR THE YEAR ENDED MARCH 31 SANK 44 TO 2924 BILLION YEN 2678 MILLION FROM A YEAR EARLIER FANUC SAID ITS BUSINESS WAS HIT HARD BY THE SLOWDOWN IN JAPANESE CORPORATE INVESTMENT IN PLANTS AND EQUIPMENT AMID THE NATION'S ECONOMIC WOES SHARP FINISHED UNCHANGED AT 1310 THE MAKER OF CONSUMER ELECTRONICS AND OFFICE AUTOMATION EQUIPMENT REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 SLID 30 TO 5159 BILLION YEN BECAUSE PERSONAL DEMAND WAS REDUCED BY INCREASED UNEMPLOYMENT AND SMALLER GROWTH IN WORKERS' SALARIES 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 9305270038 930527 ECONOMY ECONOMY SHOWS ANOTHER SIGN OF BEING IN RUT ORDERS FOR DURABLE GOODS WERE FLAT LAST MONTH COMMERCE AGENCY SAYS BY PEARL THEVANAYAGAM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS FOR DURABLE GOODS WERE FLAT IN APRIL ACCORDING TO THE COMMERCE DEPARTMENT ANOTHER SIGN MANUFACTURING IS IN A RUT THE WEAK APRIL PERFORMANCE FOLLOWS THE 37 DECLINE IN MARCH THE DURABLEGOODS SECTOR WHICH CONSISTS OF ITEMS INTENDED TO LAST THREE YEARS OR MORE HAS VACILLATED BETWEEN PROMISING ORDER INCREASES AND DISHEARTENING ONES FOR SEVERAL MONTHS PART OF THE PROBLEM IS THAT BIG ORDERS FOR AIRCRAFT OFTEN CAUSE THE VALUE OF ORDERS TO SWING UP SHARPLY BUT SUCH INCREASES CAN'T BE SUSTAINED BUT ANALYSTS SAID APRIL'S STAGNATION IN NEW ORDERS ALSO SUGGESTS THE ECONOMY ISN'T HAVING MUCH SUCCESS GATHERING NEW MOMENTUM SEPARATELY THE NATIONAL ASSOCIATION OF BUSINESS ECONOMISTS SAID IT HAS SCALED BACK ITS GROWTH ESTIMATES FOR THE REST OF 1993 AND 1994 IN PART BECAUSE OF PRESIDENT CLINTON'S INABILITY TO GET HIS STIMULUS PACKAGE THROUGH CONGRESS THE PACKAGE WAS MEANT TO HELP CREATE JOBS JOB CREATION CONTINUES TO BE AN ACHILLES' HEEL FOR THE ECONOMY SAID JOSEPH DUNCAN PRESIDENT OF THE ASSOCIATION AND CHIEF ECONOMIST OF DUN & BRADSTREET CORP ALSO FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SPEAKING TO BANKERS IN DALLAS PLAYED DOWN THE SIGNIFICANCE OF POLLS SUGGESTING THAT CONSUMER CONFIDENCE IS SAGGING WE ONLY NEED LOOK AT TUESDAY'S CONFLICTING DATA REPORTS HE SAID WHILE ON THE ONE HAND THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX FELL VERY SHARPLY LIGHT MOTOR VEHICLE SALES DATA FOR THE SECOND 10 DAYS OF MAY WERE EXCEPTIONALLY GOOD WHILE THE FED REVIEWS SUCH CONSUMER CONFIDENCE MEASURES AND INDEED HELPED ORIGINATE THEM AFTER WORLD WAR II MR GREENSPAN SAID THAT THEIR USEFULNESS IN FORECASTING THE DIRECTION OF THE ECONOMY IS NOT THAT GOOD ORDERS FOR PRIMARY METALS WHICH HAVE BEEN DROPPING STEADILY FOR THREE MONTHS TOOK THE HARDEST HIT IN APRIL FALLING 68 ACCORDING TO THE COMMERCE DEPARTMENT REPORT ORDERS FOR INDUSTRIAL MACHINERY AND EQUIPMENT ALSO TOOK A BIG DROP FALLING 48 TRANSPORTATION EQUIPMENT DECLINED 01 AS AN INCREASE IN AIRCRAFT AND PARTS WAS MORE THAN OFFSET BY A DROP IN MOTOR VEHICLES AND PARTS AND SHIPBUILDING AND TANKS HOWEVER THERE WAS A BIG JUMP IN ORDERS FOR ELECTRONIC PARTS AND COMMUNICATIONS EQUIPMENT ALSO TROUBLING WAS THAT UNFILLED ORDERS FELL IN APRIL TO THEIR LOWEST LEVEL SINCE 1988 THAT SUGGESTS MANUFACTURERS ARE HAVING AN EASY TIME MEETING PRODUCTION SCHEDULES WITH THEIR CURRENT WORK FORCES AND ARE NOT LIKELY TO HIRE MANY EMPLOYEES SOON COMMERCE SECRETARY RONALD BROWN USED THE REPORT AS AN OPPORTUNITY TO SAY THAT CONGRESS SHOULD PASS THE PRESIDENT'S BUDGET PROGRAM TO ADDRESS THE GROWING FISCAL DEFICIT THEN WE CAN LOOK TOWARD LONGTERM INTEREST RATES THAT CAN SET THE STAGE FOR A NEW AND SUSTAINED ROUND OF GROWTH BUT FAILING TO DO SO COULD JEOPARDIZE EMPLOYMENT AND INCOME HE SAID BUT NORTHERN TRUST ECONOMIST ROBERT DIELI SAID THE DURABLEGOODS REPORT WASN'T A SIGN OF NEW WEAKNESS IN THE MANUFACTURING SECTOR MOST NOTABLY HE SAID THE DROP IN NEW ORDERS FOR PRIMARY METALS HAD TO DO MORE WITH THE TIMING OF AUTO MODEL CHANGES AND LABOR NEGOTIATIONS THAN A TREND OF SLOW GROWTH ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS 9305270037 930527 LEARNING CURVE SCHOOL DAY CARE HELPS TEEN MOMS BUT RISKS CONDONING PREGNANCIES DISTRICTS WEIGH INVOLVEMENT IN GIRLS' PERSONAL LIVES AS FOES GROUSE LOUDLY MATH TESTS AND FROOT LOOPS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH LIKE HIGHSCHOOL STUDENTS EVERYWHERE OLIVER HIGH SCHOOL SENIOR MONICA LEE TUMBLES OUT OF BED EACH WEEKDAY AT DAWN AND RUSHES TO GET READY FOR CLASS THEN SHE ADDS AN EXTRA RITUAL ROUSING HER THREEYEAROLD SON DONNIE WHO WILL COME ALONG WITH HER WHILE MISS LEE TOILS AT ENGLISH AND MATH DONNIE PLAYS WITH BLOCKS AND LISTENS TO STORIES AT A SCHOOL DAYCARE CENTER DOWN THE HALL WITH THE CENTER'S HELP I CAN COME TO SCHOOL AND STILL LEARN SAYS MISS LEE AN HONORROLL STUDENT THE SERENE 19YEAROLD HAS HIGH HOPES FOR HER FUTURE INCLUDING COMMUNITY COLLEGE AND A CAREER IN NURSING FOR PROPONENTS OF INSCHOOL DAYCARE CENTERS MISS LEE IS A SHINING SUCCESS STORY FOR CRITICS SHE IS PRECISELY WHY THE PROGRAMS SHOULD BE SHUTTERED HER SCHOOL DISTRICT'S CHILDCARE PROGRAM ALLOWS HER TO STAY IN SCHOOL DREAM OF A SOLID JOB AND LEARN PARENTING SKILLS YET FOES SAY IT ALSO CONDONED HER PREGNANCY AND ALLOWS HER TO SHIRK CHILDCARE RESPONSIBILITY WHILE COSTING TAXPAYERS IN THE FINANCIALLYSTRAPPED COMMUNITY 541170 A YEAR FROM CONDOM DISTRIBUTION TO ADDICTION COUNSELING SCHOOLS ARE SPENDING MORE AND MORE TIME DEALING WITH SOCIAL PROBLEMS RATHER THAN BASIC EDUCATION INCREASING NUMBERS USE DAYCARE CENTERS AS A WAY TO MONITOR YOUNG MOTHERS' ATTENDANCE AND THE DEVELOPMENT OF THEIR BABIES WHO THEMSELVES WILL BE ENTERING THE SCHOOL SYSTEM IN JUST A FEW YEARS MOST OF THE PROGRAMS DON'T MONITOR YOUNG FATHERS WHO GENERALLY HAVE MINIMAL INVOLVEMENT WITH THEIR CHILDREN THE SCHOOLS ARE NAVIGATING A TRICKY PATH AS THEY TRY TO HELP TEEN PARENTS WITHOUT GIVING THE NOD TO TEEN PREGNANCIES IN A WAY IT DOES PROMOTE IT TO BE ACCEPTABLE SAYS KENNETH KNOCHEL PRESIDENT OF THE SCHOOL'S BOOSTER CLUB AND THE FATHER OF AN OLIVER HIGH STUDENT BUT IF YOU CAN HELP A COUPLE OF KIDS STAY IN THE RIGHT DIRECTION THEN WE SHOULD CONTINUE CHILD CARE IS AVAILABLE IN APPROXIMATELY 11 OF SCHOOL DISTRICTS ACCORDING TO A 1986 READER SURVEY BY CAPITOL PUBLICATIONS INC IN ALEXANDRIA VA WHICH PUBLISHES NEWSLETTERS FOR EDUCATORS EDUCATORS BELIEVE THERE HAS BEEN A SMALL INCREASE SINCE THE SURVEY WAS PUBLISHED A RESPONSE TO A RISING TEEN BIRTHRATE IN 1990 THE MOST RECENT YEAR AVAILABLE THE BIRTHRATE FOR GIRLS AGE 15 TO 19 WAS 599 PER 1000 UP FROM 502 IN 1986 THE CENTERS SOME OF WHICH ARE NOW MORE THAN A DECADE OLD ARE STARTING TO YIELD SOME ENCOURAGING RESULTS IN PENNSYLVANIA WHERE 4500 TEENAGERS PARTICIPATE IN STATEFUNDED TEEN PARENT PROGRAMS INCLUDING CLASSES AS WELL AS SOME CHILDCARE CENTERS 92 STAY IN SCHOOL AND 85 GRADUATE THAT COMPARES WITH A NATIONWIDE DROPOUT RATE FOR PREGNANT TEENS OF 60 TO 75 ACCORDING TO THE STATE'S EDUCATION DEPARTMENT OLIVER HIGH'S 13YEAROLD PROGRAM HELPS 80 OF ITS TEEN MOTHERS TO GRADUATE MORE THAN HALF GO ON TO FURTHER EDUCATION OR VOCATIONAL TRAINING ESTIMATES THE CENTER'S DIRECTOR KATHERINE PEYTON THOUGH THE PROGRAM ISN'T CHEAP I'D RATHER PAY UP FRONT THAN PAY FOR IT LATER IF THEY'RE LIFETIME WELFARE RECIPIENTS MRS PEYTON SAYS YET EVEN SOME LONGSTANDING SCHOOLBASED DAYCARE CENTERS ARE UNDER FIRE FROM CRITICS WHO LINK THE PROGRAMS TO A GROWING SEXUAL PERMISSIVENESS AMONG TEENAGERS IN COMMERCE CITY COLO SOME TAXPAYERS ARE BLAMING THE HIGH SCHOOL'S 16YEAROLD DAYCARE CENTER AND ITS CONDOMDISTRIBUTION PROGRAM FOR A PURPORTED INCREASE IN TEEN PREGNANCIES THEIR PROTEST WAS PROMPTED BY A SCHOOLDISTRICT REPORT CLAIMING THAT ADAMS CITY HIGH SCHOOL'S BIRTHRATE IS 31 ABOVE THE NATIONAL AVERAGE FOR TEENAGERS THE FINDINGS WERE IMMEDIATELY DISPUTED BY PRINCIPAL C THOMAS BUDDE WHO SAYS THE STUDY WAS BASED ON ANECDOTAL INTERVIEWS WITH CHILDCARE TEACHERS THE DISTRICT LATER AGREED WITH MR BUDDE AND NOW SAYS THE TEEN BIRTHRATE APPEARS TO HAVE PLATEAUED IN RECENT YEARS AFTER RISING IN THE LATE 1980S NEVERTHELESS THE REPORT PROMPTED A TORRENT OF OUTRAGE IN THE BLUECOLLAR COMMUNITY'S LOCAL MEDIA COMMUNITY ACTIVIST VIRGINIA TODD WHOSE CHILDREN ATTENDED ADAMS CITY HIGH DEMANDED THAT THE DISTRICT CLOSE THE DAYCARE CENTER OR MOVE IT OFF CAMPUS IN THE WORKING WORLD YOU PAY FOR YOUR OWN CHILD CARE SHE SAYS I FEEL THE CHILDCARE PROGRAM IN THE HIGH SCHOOL GIVES THE KIDS A FALSE SENSE OF SECURITY ABOUT WHO CAN AND WILL TEND TO THEIR CHILDREN THE ISSUE HAS DIVIDED THE WEST SHORE SCHOOL DISTRICT IN A MIDDLECLASS SUBURB OF HARRISBURG PA IN DECEMBER MORE THAN TWO DOZEN RED LAND HIGH SCHOOL STUDENTS HELD A SITIN IN THE SCHOOL LOBBY TO DEMAND A DAYCARE CENTER THE DEMONSTRATION WAS PROMPTED BY THE SUSPENSION OF A TEEN MOTHER 17YEAROLD APRIL FULLER AFTER SHE BROUGHT HER BABY TO CLASS WHEN HER BABY SITTER CANCELED I TOLD THEM I WASN'T GOING HOME BECAUSE THEY'D BEEN PROMISING DAY CARE AND NOTHING HAD BEEN DONE SAYS MISS FULLER A SEAMSTRESS'S DAUGHTER WHO MISSED 10 OF 70 SCHOOL DAYS LAST FALL BECAUSE BABYSITTING ARRANGEMENTS FOR HER INFANT DAUGHTER DEVON MARIE KEPT FALLING THROUGH THE PROTEST RECEIVED CONSIDERABLE ATTENTION MOST OF IT NEGATIVE WE'RE MAKING IT TOO EASY FOR THE KIDS SAYS DEBRA BRENNEMAN A MOTHER OF TWO WHO WROTE AN ANGRY LETTER TO THE HARRISBURG PATRIOTNEWS THEY MADE THEIR CHOICES THEY HAVE TO LIVE WITH THE CONSEQUENCES THE SCHOOL IS ATTEMPTING TO STRIKE A COMPROMISE IT APPLIED FOR ABOUT 75000 IN STATE GRANTS THUS AVOIDING LOCAL TAX REVENUES TO BUILD A DAYCARE CENTER FOR THE OFFSPRING OF STAFF AS WELL AS STUDENTS IF THE GRANT COMES THROUGH THE CENTER WILL BE LOCATED IN THE SCHOOL DISTRICT'S ADMINISTRATION BUILDING INSTEAD OF AT THE HIGH SCHOOL TEEN MOTHERS WILL BE REQUIRED TO TAKE PARENTING CLASSES WE'RE STRESSING IT AS A DROPOUT PREVENTION PROGRAM SAYS SUPERINTENDENT LARRY SAYRE WE FEEL VERY STRONGLY THAT IF WE SPEND A LITTLE MONEY ON PREVENTION NOW THE DIVIDENDS WILL BE PAID IN THE FUTURE BUT DO THE DAYCARE PROGRAMS REALLY KEEP TEEN PARENTS IN SCHOOL NO COMPREHENSIVE STUDIES EXIST MEANING BOTH PROPONENTS AND CRITICS CAN WAVE THEIR OWN SETS OF CONFLICTING DATA A 1985 OHIO STUDY FOR EXAMPLE FOUND THAT TEEN MOTHERS WHO PUT THEIR BABIES IN DAY CARE WERE MORE LIKELY TO GRADUATE THAN TEEN MOTHERS WHO DIDN'T YET A COLORADO STATE UNIVERSITY STUDY BASED ON 198889 COLORADO DATA FOUND NO DIFFERENCE IN GRADUATION RATES THE CENTER IS ONE OF FIVE RUN BY THE PITTSBURGH SCHOOL DISTRICT ALL OF WHICH ARE FULL TO CAPACITY AND BURDENED WITH LONG WAITING LISTS THIS YEAR 125 TEEN MOTHERS ARE PARTICIPATING IN THE PROGRAM ABOUT A QUARTER OF THEM HAVE MORE THAN ONE CHILD AND ONE HAS THREE THE PROGRAM'S 541170 COST WHICH ALSO INCLUDES CHILDCARE AND PARENTING CLASSES TAKEN BY 170 OTHER STUDENTS IS FUNDED PRIMARILY BY THE STATE A BRIGHTLYLIGHTED CLASSROOM IS THE SETTING FOR OLIVER'S CENTER WITH A KITCHENETTE ON ONE SIDE AND A PLAY AREA STOCKED WITH TOYS LIKE A POPULAR PLASTIC LAWN MOWER ON THE OTHER IT IS HEADED BY MRS PEYTON A SOFTSPOKEN GRANDMOTHER OF 14 WITH A BACHELOR'S DEGREE IN EARLYCHILDHOOD EDUCATION AND 22 YEARS OF EXPERIENCE IN THE SCHOOL DISTRICT SHE EARNS 22000 A YEAR HER TITLE IS CHILDCARE SPECIALIST BUT SHE'S ALSO A SURROGATE MOTHER AND GRANDMOTHER TYPICALLY HER DAY STARTS AT DAWN WHEN SHE TELEPHONES HALF A DOZEN SLUMBERING TEENAGE GIRLS TO GET THEM AND THEIR BABIES OUT OF BED THEN SHE TAKES A 612 AM BUS ARRIVING EARLY TO PREPARE FOR A DAY OF CHANGING DIAPERS TOILET TRAINING TODDLERS SINGING SONGS READING STORIES PLAYING GAMES FEEDING BABIES AND DOING LOAD AFTER LOAD OF LAUNDRY IN THE POCKET OF SILENCE BEFORE THE SCHOOL DAY BEGINS SHE FIXES BREAKFASTS OF HOT OATMEAL OR COLD CEREAL AND MILK FOR THE OLDER CHILDREN AS THE TEEN MOTHERS ARRIVE SHE HOISTS THE YOUNGER BABIES INTO HIGH CHAIRS TAKES THEIR INDIVIDUALLY LABELED BOTTLES FROM THE REFRIGERATOR AND SHOOS THEIR MOTHERS OFF TO CLASS IF I DIDN'T LOVE THE BABIES I'D QUIT MY JOB SHE SAYS AMONG HER DOZEN CHARGES ONE RECENT MORNING IS QUAYSHAWN SLOAN THE CHUBBY 15MONTHOLD SON OF LA QUAYE SLOAN 16 MISS SLOAN EXPLAINS THAT HER DIET WHILE PREGNANT TENDED TOWARD HOAGIES AND PIZZA SHE SHARES A BEDROOM WITH HER YOUNG SON SHE SAYS AND KNOWS IT IS TIME TO GET UP WHEN SHE HEARS KIDDIE CARTOONS BLARING FROM THE TV SET THAT SHE LEAVES ON ALL NIGHT SHE ADDS I DON'T THINK THERE'S ANYTHING HARD ABOUT BEING A PARENT INEVITABLY MRS PEYTON'S JOB IS OFTEN LESS ABOUT BABY SITTING THAN IT IS ABOUT TEACHING STUDENTS HOW TO BE PARENTS WHEN MISS LEE'S SON DONNIE WAS AN INFANT MRS PEYTON HAD TO STOP HER FROM FEEDING HIM SCRAMBLED EGGS AND SAUSAGE SUGGESTING WARM BABY CEREAL INSTEAD MISS LEE SAYS SHE WAS SOMETIMES TEMPTED TO SHAKE DONNIE WHEN HE CRIED UNTIL MRS PEYTON AND A HOMEECONOMICS TEACHER HELPED HER CONTROL HER TEMPER OCCASIONALLY MRS PEYTON CHASTISES THE YOUNG MOTHERS FOR SOCIALIZING DURING HOMEROOM INSTEAD OF TENDING TO THEIR BABIES ELICITING LOUD CRIES OF PROTEST HER HANDSON APPROACH SOMETIMES MISSES THE MARK AS WAS THE CASE WITH NIKIYA DAVIS A HEADSTRONG 16YEAROLD WITH A 371 GRADE POINT AVERAGE LAST FALL AFTER A PERFECT ATTENDANCE RECORD LAST TERM MISS DAVIS ABRUPTLY PULLED HER 18MONTHOLD SON NA'RON OUT OF THE PROGRAM EARLIER THIS YEAR SHE WAS ANGRY SHE SAYS BECAUSE SHE FELT THE CENTER WAS BLAMING HER FOR A BAD BURN ON HER SON'S HAND WHICH SHE SAYS HE GOT AFTER TOUCHING A HOT IRON NOW SHE TAKES NA'RON TO A PRIVATE DAYCARE CENTER AND HER SCHOOL ATTENDANCE IS SPOTTY I DON'T FEEL LIKE GOING I JUST DON'T SHE SAYS SIMPLY THIS A CRY FOR HELP AND I DON'T KNOW HOW TO HELP HER SAYS A FRUSTRATED MRS PEYTON WHO APPARENTLY INCURRED MISS DAVIS'S WRATH BECAUSE SHE AND OLIVER ADMINISTRATORS INSISTED ON PROOF THAT NA'RON HAD BEEN EXAMINED BY A DOCTOR IN THE PAST I COULD HELP MY STUDENTS THAT'S MY LEGACY I'M A RESCUER FOR SOME REASON I CAN'T GET THROUGH TO HER SAYS LINDA GRICE WHO TEACHES PARENTING AND CHILDCARE CLASSES WE HAVE TO REMEMBER THEY'RE STILL KIDS THEMSELVES GOING THROUGH ADOLESCENT CHANGES WITH A TRACE OF WEARINESS MRS PEYTON WHO HAS WORKED AT THE OLIVER CENTER FOR NINE YEARS SAYS THAT THIS SCHOOL YEAR HAS BEEN THE MOST DIFFICULT YET THE MOTHERS NOW THEIR PROBLEMS ARE COMPOUNDED SHE SAYS THEY DON'T GET ALONG WITH THEIR PARENTS THERE'S A STEPFATHER IN THE PICTURE THE NEIGHBORHOODS ARE MORE DANGEROUS THE PARENTS DON'T MAKE ENOUGH MONEY STUDENTS ARE GETTING PREGNANT EARLIER WHICH MEANS THEIR CHILDREN ARE IN DAY CARE LONGER THE BABIES HAVE MORE HEALTH AND BEHAVIORAL PROBLEMS OFTEN THE RESULT OF POOR PRENATAL CARE THE TEENS ARE OFTEN IN DENIAL UNTIL THE FOURTH OR FIFTH MONTHS OF PREGNANCY AND DON'T TAKE PRECAUTIONS DURING THAT CRITICAL PERIOD OF THE BABIES IN MRS PEYTON'S PROGRAM RANGING IN AGE FROM SEVEN MONTHS TO THREE YEARS THREE WERE BORN PREMATURELY INCLUDING ONE WHO WEIGHED 17 POUNDS AT BIRTH AND ANOTHER WHO IS HARD OF HEARING THE YOUNG MOTHERS ARE SOMETIMES STRAINED ALMOST TO THE BREAKING POINT AS THEY JUGGLE THEIR RESPONSIBILITIES AFTER A FULL SCHOOL DAY EILEEN DITTRICH THE 18YEAROLD MOTHER OF ALYSSA ONE WORKS AT A HOSPITAL PREPARING DINNER TRAYS FOR PATIENTS BETWEEN HER JOB AND HER BABY SHE MANAGES TO GET TO HER HOMEWORK AROUND 10 PM ANOTHER OF MRS PEYTON'S STUDENTS DROPPED OUT OF SCHOOL IN ORDER TO STAY HOME AND PROTECT HER YOUNGER SIBLINGS FROM THEIR MOTHER A VIOLENT DRUG ADDICT ACCORDING TO THE SCHOOL DISTRICT MRS PEYTON SAYS ABOUT 10 OF HER STUDENTS FALL THROUGH THE CRACKS AND END UP AS UNEMPLOYED WELFARE MOTHERS SOME OF THEM SEE IT AS A MEAL TICKET SHE SAYS THEY CAN GET ON WELFARE AND GET THEIR OWN PLACE BUT SOME OLIVER GRADUATES CREDIT THE DAYCARE PROGRAM WITH HELPING TURN THEIR LIVES AROUND YAVETTA PAILLETT 24 A 1987 GRADUATE WITH A NINEYEAROLD DAUGHTER KANDRA IS NOW A STUDENT AT A COMPUTER SOFTWARE SCHOOL IF THE PROGRAM WASN'T THERE I DON'T THINK I WOULD HAVE GONE ON WITH HIGH SCHOOL SHE SAYS JUQUETTA MURRAY A 19YEAROLD MOTHER OF TWO WHO GRADUATED FROM OLIVER LAST YEAR ATTENDS A COMMUNITY COLLEGE AND PLANS TO BE A NURSE THE PROGRAM TAUGHT HER RESPONSIBILITY THAT IT'S YOUR CHILD NOT ANYONE ELSE'S SHE SAYS BUT SHE ADDS THAT SHE IS CURRENTLY ON WELFARE AND THAT SHE SPENDS 200 A MONTH ON FIVEYEAROLD BRANDI'S CLOTHES ALONE MRS PEYTON SAYS SHE WOULD LIKE NOTHING BETTER THAN TO HAVE HER JOB BECOME OBSOLETE I WILL BE GLAD FOR THE DAY WHEN THERE WON'T BE A NEED FOR THIS JOB SHE SAYS BECAUSE I REALLY WOULD LIKE TO SEE TEENS GRADUATE WITHOUT BABIES YET EVEN THE MOST SUCCESSFUL GRADUATES WONDER IF THE CYCLE OF BABIES HAVING BABIES CAN BE BROKEN LUCY MAY KENYON 32 GRADUATED FROM COLORADO'S ADAMS CITY HIGH SCHOOL IN 1980 AND IS NOW A FEDERAL COURT DEPUTY CLERK A JOB SHE LOVES SHE WAS 16 YEARS OLD WHEN HER DAUGHTER ANGELA WAS BORN NOW ANGELA HERSELF IS ABOUT TO TURN 16 ASKED IF SHE WOULD LIKE TO HAVE A BABY ANGELA A VARSITY SOFTBALL PLAYER WHO STILL REMEMBERS PLAYING AS A TOT IN THE HIGH SCHOOL'S DAYCARE CENTER SAYS I DON'T THINK SO I'VE SEEN HOW MY MOM WENT THROUGH A LOT OF STUFF BUT HER YOUNG MOTHER ISN'T SO SURE ONE OF HER FRIENDS IS PREGNANT AND SHE'S KIND OF JEALOUS MS KENYON WORRIES I TRY TO TELL HER NO NO 9305270035 930527 REVIEW & OUTLOOK EDITORIAL THE CLASSWARFARE ECONOMY BOREN AND BEYOND SENATOR DAVID BOREN SHOULD BE CONGRATULATED FOR HAVING THE COURAGE TO SAY THE EMPEROR HAS NO CLOTHES HIS OPPOSITION TO THE ENERGY TAX PROVISIONS IN THE CLINTON ECONOMIC PACKAGE PULLED THE LOOSE STRING THAT STARTED AN UNRAVELING LIKELY TO CONTINUE EVEN IF THE BILL SQUEEZES THROUGH THE HOUSE IN TODAY'S SCHEDULED VOTE FOR IN LIGHT OF THE UNCERTAIN ECONOMY THE BILL IS FLAWED IN WAYS THAT REACH WELL BEYOND THE ENERGY TAX THIS SPRING'S COLLEGE GRADUATES FACE THE BLEAKEST JOB MARKET SINCE BEFORE WORLD WAR II CONSUMER CONFIDENCE HAS BEEN SINKING AS THE CLINTON PROPOSALS HAVE BEEN ADVANCED AND UNDERSTOOD TWO YEARS INTO A RECOVERY THE ECONOMY REMAINS DISPIRITED AND UNCERTAIN WHAT AN ECONOMIC PACKAGE NEEDS TO DO IS RESTORE THE VIGOR WE KNEW BACK IN THE LONGEST PEACETIME EXPANSION IN AMERICAN ECONOMIC HISTORY THAT EXPANSION OF COURSE IS POPULARLY DISMISSED AS A DECADE OF GREED AND INSTEAD OF TRYING TO BRING BACK THE VIGOR OF THE 1980S MR CLINTON'S PACKAGE IS IN MYRIAD WAYS DESIGNED TO REVERSE IT HE SEEKS TO HAVE THOSE WHO PROSPERED IN THE 1980S PAY THEIR FAIR SHARE THOUGH OF COURSE THE ROBERT RUBINS AND THE LESSER MILLIONAIRES IN THE CLINTON ENTOURAGE ALREADY HAVE THEIR GAINS NEATLY TUCKED AWAY WHAT THE PRESIDENT REALLY MEANS IS THAT THERE SHOULD BE NO NEW ROBERT RUBINS IN THE 1990S IT IS PRECISELY THIS SPIRIT THAT IS RESPONSIBLE FOR TODAY'S LISTLESS ECONOMY LATE IN 1989 THE DEBATE OVER TAX POLICY SHIFTED GEARS ENTIRELY BEFORE THEN IT CONCERNED HOW TO CREATE INCENTIVES FOR GROWTH BUT WITH GEORGE MITCHELL'S FILIBUSTER TO STOP AN IMPENDING CUT IN THE CAPITAL GAINS TAX AND EVEN MORE SO WITH THE 1990 BUDGET DEAL IT SWITCHED TO THE ISSUE OF WHO GETS WHAT THE ECONOMY PEAKED IN JULY 1990 TANKED IN 1991 AND HAS NEVER FULLY RECOVERED A PREOCCUPATION WITH SOME MYTHICAL FAIRNESS WILL GIVE YOU THE KIND OF ECONOMY YOU ENJOY TODAY WE ALREADY SUFFER A CLASSWARFARE ECONOMY AND WITH OR WITHOUT THE ENERGY TAX MR CLINTON'S PROPOSALS PRESCRIBE MORE OF THE SAME SENATOR BOREN'S INITIATIVE TO REPLACE THE ENERGY TAX WITH SPENDING RESTRAINT IS ENORMOUSLY IMPORTANT ON ONE SIDE OF THE PROBLEM IF THE SPENDING RESTRAINT ACTUALLY EVENTUATED A CONDITION WE WILL RETURN TO PRESENTLY IT WOULD STAUNCH THE GROWTH OF GOVERNMENT THE ENERGY TAX IS INTENDED AS THE BIG MONEYRAISER TO FUEL FURTHER EXPENDITURES AND WITHOUT IT THE SPENDING CONSTITUENCIES WILL COME UNGLUED REP HENRY WAXMAN HAS ALREADY THREATENED TO VOTE AGAINST ANY BILL WITH REAL CAPS ON ENTITLEMENT PROGRAMS AND THE BLACK CAUCUS THREATENS TO DESERT IF THE WHITE HOUSE FALTERS ON THE CONTROVERSIAL NOMINATION OF LANI GUINIER TO THE JUSTICE DEPARTMENT BUT EVEN IF AN ENTITLEMENT CAP IS ULTIMATELY NEGOTIATED IN A HOUSESENATE CONFERENCE WHAT CAN IT CONCEIVABLY MEAN ENTITLEMENTS OF COURSE ARE PROGRAMS THAT SPEND MONEY WITHOUT YEARBYYEAR APPROPRIATIONS BY CONGRESS BUT A CAP WOULD NOT TAKE ANY OF THEM OFF THE BOOKS INDEED A NEW ENTITLEMENT PERHAPS THE MOTHER OF ALL ENTITLEMENTS IS CURRENTLY ON THE RUNWAY IN THE ADMINISTRATION'S THREAT TO OVERHAUL THE HEALTH CARE SYSTEM IN 1990 AND BEFORE THAT IN 1982 WE SAW BUDGET DEALS THAT RESULTED IN TAX INCREASES WHILE PROMISED SPENDING CUTS OOZED AWAY IF THE ENERGY TAX IS PARED AWAY BUT WE REPEAT THAT EXPERIENCE IT WILL BE NO VICTORY ESPECIALLY SO SINCE WE'D STILL BE LEFT WITH A HOST OF TAXES LEVIED IN THE NAME OF FAIRNESS WHICH WILL RAISE NO REVENUES BUT WILL BURDEN THE ECONOMY WITH DISINCENTIVES AS RECORDED IN THE ACCOMPANYING GRAPH THE OVERWHELMING HISTORICAL EVIDENCE IS THAT REGARDLESS OF TAX RATES GOVERNMENT REVENUES WILL STABILIZE AT ABOUT 195 OF GROSS DOMESTIC PRODUCT IF YOU SLAP THE RICH WITH HIGH MARGINAL RATES THE DEVILS WILL ARRANGE THEIR AFFAIRS TO AVOID THEM WHETHER THROUGH INEFFICIENT LOOPHOLES OR BY SIMPLY WORKING LESS INVESTING LESS AND PRODUCING LESS THE LESSON IS THAT YOU CANNOT REDUCE THE DEFICIT BY TAX INCREASES ONLY BY BONA FIDE SPENDING REDUCTIONS THE FURTHER LESSON IS THAT THE GOVERNMENT MAXIMIZES ITS REVENUES NOT BY A TAX SYSTEM DESIGNED TO PUNISH SUCCESS BUT BY A TAX SYSTEM THAT PROVIDES INCENTIVES TO REWARD SUCCESS SENATOR BOREN'S PROPOSAL GETS BEYOND THE ENERGY TAX TO BE SURE TO RUB OUT SOME OF THE MORE MONSTROUS PUNISHMENTS IN THE CLINTON PROPOSAL SUCH AS THE RETROACTIVE TAX ON INCOME EARNED BEFORE ANY TAX IS PASSED MORE IMPORTANTLY HIS INITIATIVE REOPENS THE DOOR FOR DEBATE OVER INCENTIVES AS THE CLINTON PROPOSALS AND THEIR INTERACTIONS ARE PLUMBED ITS DISINCENTIVES WILL BECOME INCREASINGLY APPARENT WHAT THE ECONOMY NEEDS IS NOT MERELY THE DEFEAT OF THE ENERGY TAX AND A REPETITION OF THE 1990 BUDGET DEAL IT NEEDS A FRESH APPROACH REVERSING THE CLINTON PROPOSAL NOT ONLY IN LETTER BUT IN SPIRIT VIGOROUS PROSPERITY WILL RETURN WHEN WE BRING DOWN THE CURTAIN ON CLASS WARFARE AND PROVIDE INCENTIVES FOR A NEW ERA OF GROWTH 9305270034 930527 INLAND STEEL UNITED STEELWORKERS NEAR REACHING AGREEMENT ON MODEL PACT BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL INLAND STEEL INDUSTRIES INC APPEARS CLOSE TO REACHING A NEW LABOR AGREEMENT WITH THE UNITED STEELWORKERS UNION THAT WILL LIKELY SET A PATTERN FOR THE STEEL INDUSTRY INLAND CHAIRMAN ROBERT J DARNALL SAID AT YESTERDAY'S ANNUAL MEETING THAT WE APPEAR TO BE CLOSE TO AN ACCORD AN INLAND SPOKESMAN HAD SAID THE COMPANY HOPED TO REACH AN AGREEMENT YESTERDAY THOUGH NO AGREEMENT HAD BEEN REACHED BY LATE YESTERDAY A UNION SPOKESMAN CONFIRMED THAT TALKS HAD INTENSIFIED AND THAT THE TWO SIDES APPEARED TO BE NEARING THE NEGOTIATIONS' FINAL STAGES CONTRACTS WITH INLAND NATIONAL STEEL CORP BETHLEHEM STEEL CORP AND ARMCO INC COVERING ABOUT 36000 WORKERS EXPIRE JULY 31 AN ACCORD WITH USX CORP'S US STEEL EXPIRES NEXT YEAR INLAND'S CONTRACT COVERS 8000 WORKERS AT ITS MAIN PLANT IN EAST CHICAGO IND THE UNION AS PART OF ITS OVERHAULED APPROACH TO COLLECTIVE BARGAINING IS OFFERING THE COMPANIES LONGERTERM CONTRACTS AND WAYS TO REDUCE WORK FORCES AND RELAX WORK RULES IN EXCHANGE FOR JOB SECURITY AND INCREASED WORKER INVOLVEMENT INCLUDING BOARD REPRESENTATION THE UNION HAS ALSO SAID IT WON'T MAKE CONCESSIONS ALTHOUGH THE COMPANIES ARE SEEKING WAYS TO EASE HEALTHCARE COSTS AND TO USE MORE CONTRACT WORKERS THE COUNTRY'S TWO TOP ALUMINUM MAKERS ALUMINUM CO OF AMERICA AND REYNOLDS METALS CO ALSO CONTINUED TO NEGOTIATE AGREEMENTS TO REPLACE ACCORDS EXPIRING MAY 31 THE STEELWORKERS AND THE ALUMINUM BRICK AND GLASS WORKERS AUTHORIZED A STRIKE IF THE CONTRACT TALKS FAIL HOWEVER A SPOKESMAN FOR THE UNION POINTED OUT THAT THE STRIKE AUTHORIZATION IS PROFORMA AND DIDN'T INDICATE A SOURING IN TALKS THE UNION HAS BEEN PUSHING FOR JOB SECURITY WHILE THE COMPANIES HAVE SOUGHT TO REDUCE HEALTHCARE COSTS THE CONTRACTS COVER OVER 11000 WORKERS AT 12 ALCOA PLANTS IN THE US AND OVER 5000 WORKERS AT 16 REYNOLDS PLANTS IN THE US AN ALCOA SPOKESMAN SAID THE COMPANY'S BUSINESS UNITS ARE PUTTING TOGETHER CONTINGENCY PLANS BUT DIDN'T SAY WHETHER THE COMPANY WOULD SEEK TO RUN ALL OPERATIONS IN A STRIKE THE US COMPRISES JUST OVER HALF OF ALCOA'S WORLDWIDE SMELTING CAPACITY BUT THE MAJORITY OF ITS ALUMINUM FINISHING CAPACITY THE MARKETPLACE SO FAR HASN'T SHOWN MUCH WORRY ABOUT A STRIKE IN PART BECAUSE OF THE WORLDWIDE OVERSUPPLY OF ALUMINUM BUT ALSO BECAUSE OF THE CORDIALITY OF TALKS SO FAR I REALLY HAVE TROUBLE SEEING A STRIKE SAID MICHELLE APPLEBAUM ANALYST WITH SALOMON BROTHERS I'D EXPECT TO SEE THEM CONTINUE TALKING AFTER THE EXPIRATION IF AN ACCORD ISN'T REACHED BEFORE THEN SHE ADDED INLAND AND THE STEELWORKERS HAD RECESSED BUT THEN RECONVENED TALKS EARLIER THIS MONTH THE UNION HAD HOPED TO SET A MODEL CONTRACT WITH US STEEL BUT TALKS BROKE DOWN IN LATEARCH THE COMPANY HAD BALKED AT THE EXTENT OF PARTICIPATION THE UNION SOUGHT IN THE COMPANY'S MANAGEMENT SEPARATELY INLAND PROJECTED A RETURN TO PROFITABILITY SOMETIME IN THE 1993 SECOND HALF FOLLOWED BY SUSTAINED PROFITABILITY THAT WILL ALLOW IT TO MATCH PREVIOUS RECORDS AND TO EARN MONEY EVEN IN DOWNTURNS THE STEELMAKER PROJECTED SHIPMENTS WOULD RISE 10 FOR THE YEAR BOOKINGS FOR THE LAST SEVEN WEEKS HAVE BEEN AT 100 OF INLAND'S CAPACITY 9305270033 930527 BIG BOARD FIGHTS TO REVIVE BOND MARKET BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE IS STRUGGLING TO REVIVE ITS MORIBUND BOND MARKET IT HAS WON A BATTLE OR TWO BUT IS STILL LOSING THE WAR LAST YEAR THE BIG BOARD ADDED 248 DEBT ISSUES SOME NEWLY UNDERWRITTEN SOME ISSUED SOME YEARS AGO TO ITS BOND LISTINGS NEARLY TRIPLING 1991'S TALLY OF 96 NEW LISTINGS AN ADDITIONAL 116 ISSUES HAVE BEEN ADDED SO FAR THIS YEAR BRINGING THE TOTAL NUMBER OF BONDS TRADED ON THE BIG BOARD TO 2313 THE BIG BOARD'S BOND MARKET HIT A MODERNDAY LOW POINT IN 1990 WHEN IT ATTRACTED ABOUT 40 OF THE 1340 ISSUES UNDERWRITTEN THAT YEAR THAT'S THE GOOD NEWS DESPITE ALL THESE NEW LISTINGS TRADING VOLUME IS DOWN THE VALUE OF BONDS TRADED ON THE EXCHANGE SO FAR THIS YEAR TOTALS 463 BILLION DOWN 125 FROM THE YEAREARLIER PERIOD AND 22 BELOW THE 1991 PERIOD MOREOVER THE MAJORITY OF TRADING IN CORPORATE BONDS IN THE US ANYWHERE FROM 88 TO 99 OF DAILY VOLUME DEPENDING ON HOW ACTIVITY IS CALCULATED TAKES PLACE OUTSIDE THE EXCHANGE TODAY WE CAN'T RAISE THE FLAG AND SAY WE'VE WON THE VICTORY SAYS BIG BOARD EXECUTIVE VICE PRESIDENT DONALD SOLODAR WHO OVERSEES THE EXCHANGE'S BOND MARKET AMONG THE NEW LISTINGS THAT MR SOLODAR IS PROUD OF ARE 37 ISSUES OF NYNEX CORP AND TWO SUBSIDIARIES NEW YORK TELEPHONE CO AND NEW ENGLAND TELEPHONE & TELEGRAPH CO WITH A TOTAL FACE VALUE OF 63 BILLION NYNEX QUIT LISTING DEBT ON THE BIG BOARD IN 1985 BECAUSE THE COST VS THE VALUEADDED WAS NOT JUSTIFIED SAYS GREGORY BORGES NYNEX ASSISTANT TREASURER BOTH THE BIG BOARD AND LISTING COMPANIES CLAIM THAT LISTING BONDS ON THE EXCHANGE IS GOOD FOR COMPANIES AND INVESTORS BECAUSE THE PRICES OF LISTED BONDS ARE PUBLISHED IN LEADING NEWSPAPERS INDIVIDUAL INVESTORS HAVE A HIGHER LEVEL OF COMFORT AND MORE IMPETUS TO BUY INTO NYNEX AS A COMPANY SAYS MR BORGES ADDS FRED ZUCKERMAN TREASURER OF RJR NABISCO HOLDINGS CORP WHICH HAS LONG LISTED ITS DEBT ON THE BIG BOARD YOU'RE NOT LEGALLY OBLIGATED TO LIST YOUR BONDS BUT YOU ARE MORALLY OBLIGATED TO INSTITUTIONAL INVESTORS CAN TAKE CARE OF THEMSELVES BUT YOU OWE A LOT MORE TO THE INDIVIDUAL INVESTORS MAYBE BUT THE BIG BOARD'S MAIN LURE IS OLDFASHIONED PRICE CUTTING LAST SPRING IT ELIMINATED BOND LISTING FEES ENTIRELY FOR COMPANIES WHOSE STOCK IS LISTED ON THE EXCHANGE REDUCED FEES FOR NONMEMBERS AND STREAMLINED PAPERWORK FOR ALL RETROACTIVE TO JAN NYNEX FIGURES ITS LISTINGS WOULD HAVE COST 725000 UNDER THE OLD FEE STRUCTURE PLUS HUNDREDS OF HOURS OF STAFF TIME NEEDED FOR REQUIRED PAPERWORK THE OLD FEES VARIED DEPENDING ON SUCH THINGS AS HOW BIG THE ISSUE WAS BUT AVERAGED 230 FOR EACH 1 MILLION OF FACE VALUE TO SAY THE BIG BOARD FACES AN UPHILL BATTLE IN REVIVING ITS BOND MARKET WOULD BE UNDERSTATING THE CHALLENGE MAJOR BOND TRADERS AND INVESTORS CONSIDER THE BIG BOARD'S DEBT MARKET IRRELEVANT TO BE HONEST I WOULDN'T EVEN KNOW HOW TO CALL EXCHANGE BOND LISTINGS UP ON THE SCREEN SAYS ROBERT AUWAERTER A VANGUARD GROUP VICE PRESIDENT WHO MANAGES A 3 BILLION CORPORATE BOND PORTFOLIO I HAVE NEVER TRADED THROUGH THE EXCHANGE IN MY CAREER WHICH SPANS BACK TO 1978 THE EXCHANGE'S MAIN PROBLEM IS THAT INSTITUTIONAL INVESTORS WHICH OWN 93 OF THE NATION'S CORPORATE BONDS HAVE FEW COMPLAINTS WITH THE STATUS QUO INSTITUTIONS HAVE COMPETITION FOR THEIR ORDER FLOW IN THE EXISTING SYSTEM SAYS JEFFREY SCHAEFER SENIOR VICE PRESIDENT OF SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP IF THEY HAVE TO LIQUIDATE THEY KNOW THEY GET QUOTED A DECENT PRICE MR AUWAERTER SAYS HE SPENDS ALL DAY LONG TALKING TO A LOT OF DIFFERENT DEALERS GETTING A SENSE OF THE FLOWS IN THE MARKETPLACE ONE NICE ADVANTAGE OF THE CURRENT SYSTEM IS THAT I GET THE INFORMATION BEHIND THE BID OR OFFER FROM TALKING TO THE SALESMAN WHAT'S HIS OR HER TRADER TRYING TO DO DO THEY REALLY HAVE TO SELL THE BONDS SUCH KNOWLEDGE HE SAYS CAN'T BE OBTAINED THROUGH THE EXCHANGE WHICH MOSTLY RELIES ON A COMPUTERIZED TRADING SYSTEM FIFTYFIVE SUBSCRIBING FIRMS ENTER BID AND OFFER PRICES INTO THE SYSTEM AND EXECUTE TRADES DIRECTLY THROUGH IT WHAT'S MORE INSTITUTIONAL INVESTORS SAY THERE ISN'T ENOUGH VOLUME ON THE BOND EXCHANGE TO ACCOMMODATE THEM THE OTHER DAY I TRADED 100 MILLION IN CORPORATES IN FIVE MINUTES AND THERE ARE A LOT BIGGER PLAYERS OUT THERE THAN US SAYS VANGUARD'S MR AUWAERTER HE CALLS THE BIG BOARD'S 1992 AVERAGE DAILY BOND VOLUME OF 458 MILLION SO MINUSCULE STILL COMPANIES ARE FINDING REASONS TO LIST ON THE EXCHANGE NOW THAT THE BIG BOARD HAS MADE IT RELATIVELY INEXPENSIVE UNISYS CORP OFFICIALS DECIDED IN JUNE TO ACCEPT A FREE LISTING PARTLY TO MINIMIZE THE NUMBER OF PHONE CALLS TO ITS INVESTOR RELATIONS OFFICE FROM FRUSTRATED INDIVIDUAL BONDHOLDERS UNISYS VICE PRESIDENT BURT TRAUB SAYS 9305270032 930527 BUSINESS BRIEF ALLIEDSIGNAL INC WINDSHEAR DETECTION SYSTEM ORDERED BY CONTINENTAL AIR ALLIEDSIGNAL INC MORRISTOWN NJ SAID CONTINENTAL AIRLINES ORDERED ITS FORWARDLOOKING WINDSHEAR DETECTION/AVOIDANCE WEATHER RADAR SYSTEM FOR 293 AIRCRAFT IN ITS CURRENT FLEET AND 190 ADDITIONAL AIRCRAFT ON ORDER OR OPTIONS OVER THE NEXT NINE YEARS THE ORDER IS THE LARGEST RECEIVED FOR THE SYSTEM BY THE ALLIEDSIGNAL AIR TRANSPORT AVIONICS UNIT THE SYSTEM GIVES FLIGHT CREWS 30 TO 60 SECONDS OF WARNING TIME BEFORE ENCOUNTERING POTENTIALLY DAMAGING WINDSHEAR TURBULENCE THE US GOVERNMENT HAS MANDATED THAT JET AIRCRAFT IN US AIRSPACE BE EQUIPPED WITH WINDSHEAR DETECTION DEVICES ALLIEDSIGNAL'S BUSINESSES INCLUDE AEROSPACE AND AUTOMOTIVE PRODUCTS CHEMICALS FIBERS PLASTICS AND ADVANCED MATERIALS 9305270031 930527 LAW WHITE HOUSE DEFENDS JUSTICE AGENCY NOMINEE WASHINGTON CLAIMING A SERIOUS INJUSTICE HAS BEEN DONE THE WHITE HOUSE HAS COME TO THE DEFENSE OF ASSISTANT ATTORNEY GENERALDESIGNATE LANI GUINIER WHOSE NOMINATION IS UNDER FIRE IN A LETTER TO SENATORS HOWARD PASTER PRESIDENT CLINTON'S LEGISLATIVE DIRECTOR SAID THAT SUBSTANTIAL MISINFORMATION ABOUT MS GUINIER'S VIEWS AND RECORD HAS BEEN SPREAD WIDELY CONSERVATIVES OPPOSING THE NOMINATION HAVE DISTRIBUTED COPIES OF LAW REVIEW ARTICLES THAT THEY CHARGE INDICATE SHE FAVORS MEASURES GUARANTEEING BLACK PEOPLE SPECIAL TREATMENT IN THE ELECTORAL PROCESS AT A NEWS CONFERENCE LEADERS OF CIVIL RIGHTS AND WOMEN'S GROUPS STRONGLY DEFENDED MS GUINIER A UNIVERSITY OF PENNSYLVANIA LAW PROFESSOR SAYING HER OPPONENTS HAVE TAKEN THE WRITINGS OUT OF CONTEXT THE PASTER LETTER ACKNOWLEDGED THAT THE CONSERVATIVE OPPOSITION WILL BE HARD TO BEAT WE RECOGNIZE THAT IT IS SOMETIMES DIFFICULT TO TURN PEOPLE AROUND FROM BIG LIES THAT GATHER MOMENTUM HE WROTE ONE DEMOCRATIC SENATE AIDE SAID MS GUINIER'S NOMINATION NEEDS SERIOUS PERSONAL INTERVENTION BY THE PRESIDENT 9305270030 930527 ECONOMY SLOW PAYMENTS ON MORTGAGES ROSE IN QUARTER ANALYSTS SAY DELINQUENCIES ARE STILL AT LOW LEVEL GOOD NEWS FOR HOUSING BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL LATE PAYMENTS ON RESIDENTIAL MORTGAGES ROSE SLIGHTLY IN THE FIRST QUARTER AFTER A SIXMONTH DECLINE BUT THE DELINQUENCY LEVEL REMAINED SO LOW THAT INDUSTRY ANALYSTS STILL VIEW IT AS A POSITIVE FOR THE HOUSING MARKET INSTALLMENTS PAST DUE 30 DAYS OR MORE ON ONETOFOURUNIT RESIDENTIAL MORTGAGES ROSE TO 429 OF ALL SUCH LOANS FROM 424 IN THE FOURTH QUARTER ACCORDING TO A QUARTERLY SURVEY BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA THOUGH MORTGAGE ANALYSTS HAD EXPECTED A SLIGHT DECLINE THEY SAID THE FIRSTQUARTER DELINQUENCY RATE WAS STILL AT AN 18YEAR LOW AFTER HAVING PLUNGED IN THE FOURTH QUARTER THE RATE IS DOWN NEARLY A PERCENTAGE POINT FROM THE RECESSIONARY PEAK OF 526 REACHED IN THE SECOND QUARTER OF 1991 MORTGAGE DELINQUENCIES HAD SUBSIDED IN THE SECOND HALF OF 1992 AS EMPLOYMENT GRADUALLY IMPROVED AND A REFINANCING BOOM RESULTED IN LOWER MONTHLY PAYMENTS FOR MANY HOMEOWNERS OUR BOTTOM LINE IS THAT IT'S ENCOURAGING THAT THE DELINQUENCY RATE HAS REMAINED LOW AFTER A VERY LARGE DROP IN THE FOURTH QUARTER SAID WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE WASHINGTON DC TRADE GROUP MR LASKO SAID HE WAS DISAPPOINTED THOUGH THAT LATE PAYMENTS DID NOT RECEDE FURTHER GIVEN AN IMPROVED EMPLOYMENT PICTURE IN THE FIRST QUARTER AND A RESURGENCE IN REFINANCING ACTIVITY AS INTEREST RATES DECLINED REFINANCINGS HAVE BEEN RUNNING AT BOOM LEVELS SINCE FEBRUARY ALTHOUGH THEY HAVE MODERATED SOMEWHAT IN RECENT WEEKS AS INTEREST RATES ROSE SLIGHTLY BECAUSE OF THIS ANALYSTS ANTICIPATE THAT MORTGAGE DELINQUENCIES WILL DECLINE FOR THE REST OF THE YEAR THE ECONOMY IS ON A RECOVERY TRACK BUT IT'S A HALTING RECOVERY MR LASKO SAID IN THE AGGREGATE IT THE DELINQUENCY INCREASE REFLECTS THAT THE ECONOMIC RECOVERY IS IN A KIND OF STOPGO PATTERN THE INCREASE IN OVERALL DELINQUENCIES WAS SO NOMINAL THAT MORTGAGE ANALYSTS SUSPECT THAT CALIFORNIA WITH ITS STILLDETERIORATING HOUSING MARKET WAS LARGELY RESPONSIBLE THEY SAID THE MARCH BLIZZARD ON THE EAST COAST ALSO MIGHT HAVE DELAYED PAYMENTS A WEEK OR SO CALIFORNIA WAS ONE OF ONLY THREE STATES ALONG WITH HAWAII AND WEST VIRGINIA IN WHICH MORTGAGE DELINQUENCIES ROSE IN THE FIRST QUARTER FROM A YEAR EARLIER SINCE THE GOLDEN STATE REPRESENTS ROUGHLY ONEFIFTH OF THE NATION'S HOUSING MARKET ITS SOUR PERFORMANCE TENDS TO RESTRAIN THE INDUSTRY AS A WHOLE WITH THE JOB BASE STILL ERODING IN HARDESTHIT SOUTHERN CALIFORNIA THE STATE'S PERCENTAGE OF LOANS IN FORECLOSURE JUMPED TO 109 IN THE FIRST QUARTER FROM 093 IN THE FOURTH QUARTER OF 1992 EXACERBATING THE HOUSING DILEMMA IN SOUTHERN CALIFORNIA IS THE FACT THAT BIG LENDERS LIKE GREAT WESTERN FINANCIAL CORP AND HF AHMANSON & CO HAVE BEGUN AGGRESSIVELY SELLING FORECLOSED HOMES IN THE REGION FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC WHICH BUYS MORTGAGES FROM LENDERS SAID IT PLANS TO AUCTION 485 FORECLOSED HOMES IN SOUTHERN CALIFORNIA NEXT MONTH JONATHAN E GRAY SENIOR ANALYST FOR SANFORD C BERNSTEIN & CO IN NEW YORK SAID ALL OF THIS CONTRIBUTES TO A CONTINUING DEPRECIATION IN HOME VALUES MR GRAY SAID THE SOUTHERN CALIFORNIA MARKET SHOULD FINALLY HIT BOTTOM IF JOB CUTBACKS END AS EXPECTED LATE THIS YEAR HOPEFULLY HE SAID CALIFORNIA WILL TURN LATE THIS YEAR OR EARLY NEXT 9305270029 930527 CORRECTIONS & AMPLIFICATIONS SHORT INTEREST IN SUMMIT TECHNOLOGY INC FOR THE RECENT TRADING MONTH ENDED IN MIDMAY ROSE TO 3422665 SHARES FROM 2924004 SHARES AT MIDAPRIL THE LISTINGS OF SHORT INTEREST IN OVERTHECOUNTER COMPANIES IN YESTERDAY'S EDITION INCORRECTLY INDICATED A MIDMAY TOTAL OF 648245 SHARES BECAUSE OF A REPORTING ERROR BY A BROKERDEALER TO THE NATIONAL ASSOCIATION OF SECURITIES DEALERS TOTAL SHORT INTEREST IN OVERTHECOUNTER STOCKS AT MIDMAY IS REVISED TO 5278 MILLION SHARES FROM 5251 MILLION LESLIE HAYES IS THE WIFE OF LOUISIANA REP JAMES HAYES AND ROSEANNE DOMENICI IS THE SISTER OF NEW MEXICO SEN PETE DOMENICI THE RELATIONSHIPS WERE INCORRECTLY STATED IN TUESDAY'S ARTICLE ABOUT A PROMOTIONAL EVENT HELD IN WASHINGTON BY THE BIG THREE CAR COMPANIES AND THE UNITED AUTO WORKERS UNION PRUDENTIAL INSURANCE CO OF AMERICA'S CHAIRMAN ROBERT C WINTERS ALSO IS CHAIRMAN OF THE PRUDENTIAL SECURITIES INC SUBSIDIARY BASED ON INFORMATION FROM PRUDENTIAL SECURITIES AN ARTICLE YESTERDAY INCORRECTLY STATED THAT THE SECURITIES UNIT HAD NO CHAIRMAN 9305270028 930527 INTERNATIONAL FRANCE UNVEILS PRIVATIZATION PLAN TO RAISE AT LEAST 5472 BILLION AMBITIOUS EFFORT INVOLVES 21 CONCERNS INCLUDING SOME OF BESTKNOWN BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE NEW RIGHTWING FRENCH GOVERNMENT ROLLED OUT ITS AMBITIOUS PRIVATIZATION PROGRAM THAT IF ACCOMPLISHED WILL PUSH SOME OF THE COUNTRY'S BESTKNOWN COMPANIES AND A FEW OF ITS LAME ONES OUT OF STATE OWNERSHIP INTO THE PRIVATE SECTOR THE PROGRAM WHICH COULD RAISE AT LEAST 300 BILLION FRANCS 5472 BILLION INCLUDES 21 COMPANIES RANGING FROM THRIVING GIANTS SUCH AS OIL CONCERN SOCIETE NATIONALE ELF AQUITAINE AND CAR MAKER RENAULT SA TO MONEYLOSING HEADACHES LIKE CIE DES MACHINES BULL AND AIR FRANCE THE GOVERNMENT HASN'T ANNOUNCED WHICH CANDIDATES IT WILL BRING TO MARKET FIRST OR HOW LONG THE PROCESS WILL TAKE BUT ECONOMICS MINISTER EDMOND ALPHANDERY SAID YESTERDAY THE SELLOFF WILL BEGIN IN SEPTEMBER OR OCTOBER AND THAT HE HOPES TO RAISE 40 BILLION FRANCS BY THE END OF THE YEAR INVESTMENT BANKERS WHO ARE LINING UP AT THE FRENCH TREASURY'S DOOR IN THE HOPES OF PICKING UP LUCRATIVE ADVISORY AND PLACEMENT MANDATES WERE GENERALLY COMPLIMENTARY ABOUT THE PROGRAM DESPITE ITS AMBITIOUS SCALE THE MONEY IS THERE FOR INVESTMENT IN PRIVATIZATION THE QUESTION IS HOW TO SHIFT IT INTO LONGTERM SAVINGS SUCH AS EQUITIES SAID DIDIER CHERPITEL HEAD OF JP MORGAN'S FRENCH OPERATION REFERRING TO THE 12 TRILLION FRANCS IN FRENCH SHORTTERM MONEY MARKET FUNDS SOME BANKERS SPEAKING PRIVATELY WERE MORE RESERVED ABOUT THE PROGRAM VOICING ANXIETY THAT THE GOVERNMENT HADN'T SPELLED OUT KEY ELEMENTS OF THE PROGRAM THAT COULD PROVE IMPORTANT THESE POINTS INCLUDE THE USE OF A GOVERNMENT VETO TO RETAIN EFFECTIVE STATE CONTROL OVER CERTAIN COMPANIES AND THE INTRODUCTION OF CORE SHAREHOLDERS TO ENSURE A STABLE CAPITAL STRUCTURE GOVERNMENT OFFICIALS DECLINED TO ANSWER QUESTIONS ON INDIVIDUAL CANDIDATES NOTING THAT A DECREE WOULD BE PUBLISHED BEFORE EACH PRIVATIZATION DETAILING THE SALE CONDITIONS AND APPOINTING OR REAPPOINTING THE COMPANY CHAIRMAN MR ALPHANDERY ALSO ANNOUNCED THE SALE THIS SUMMER OF 30 OF STATECONTROLLED CREDIT INSTITUTION CREDIT LOCAL DE FRANCE THE TRANSACTION VALUED AT ALMOST FIVE BILLION FRANCS AT CURRENT PRICES WOULD BE THE FIRST OF THE GOVERNMENT'S ASSET SALES IN ITS BID TO RAISE ADDITIONAL REVENUE TO MEET ITS PLEDGE TO BEAT DOWN UNEMPLOYMENT AND CURB THE RUNAWAY BUDGET DEFICIT CREDIT LOCAL DE FRANCE WASN'T ON THE GOVERNMENT'S MASTER PRIVATIZATION LIST AS THE STATE'S HOLDING WAS ALREADY BELOW 50 MEANING THAT A LAW WASN'T REQUIRED TO SELL ADDITIONAL SHARES OIL COMPANY TOTAL SA OF WHICH THE STATE OWNS 15 IS CONSIDERED ANOTHER CANDIDATE FOR A SIMILARLY QUICK BUT RELATIVELY SMALL ASSET SALE THE MOST LIKELY CANDIDATES FOR THE FIRST FULL PRIVATIZATIONS ARE ELF AQUITAINE BANQUE NATIONALE DE PARIS UNION DES ASSURANCES DE PARIS AND RHONEPOULENC SA OTHERS ON THE GOVERNMENT'S LIST WHICH IS INTENDED TO COVER ALMOST EVERY STATEOWNED COMPANY IN THE COMPETITIVE SECTOR WILL FOLLOW AND IT COULD BE YEARS BEFORE SOME OF THE LOSSMAKERS SUCH AS BULL OR AIR FRANCE ARE BROUGHT TO MARKET THE NEW PROGRAM PICKS UP WHERE NEW PRIME MINISTER EDOUARD BALLADUR LEFT OFF IN 1988 WHEN A PREVIOUS PRIVATIZATION PROGRAM WAS INTERRUPTED BY THE RETURN OF THE SOCIALISTS TO POWER BETWEEN 1986 AND 1988 MR BALLADUR AS FINANCE MINISTER HAD RAISED SOME 130 BILLION FRANCS FOR THE STATE BY BRINGING 12 MAJOR STATEOWNED GROUPS TO THE STOCK MARKET INCLUDING GLASS MAKER CIE DE SAINTGOBAIN RETAIL BANK SOCIETE GENERALE DE FRANCE SA AND ENGINEERING GROUP ALCATELALSTHOM SA BUT THIS TIME AROUND THERE ARE IMPORTANT CHANGES TO HIS PLAN THE MOST SIGNIFICANT FOR FOREIGN INVESTORS IS THAT A PREVIOUS RULE LIMITING ANY ISSUE'S FOREIGN PORTION TO 20 OF THE TOTAL HAS BEEN LIFTED THE GOVERNMENT HAS DEVISED WHAT IT CONSIDERS A MORE EFFECTIVE DEFENSE MECHANISM A GOLDEN SHARE THAT GIVES IT CERTAIN RIGHTS OVER PRIVATIZED COMPANIES THAT COULD EFFECTIVELY PROTECT THE COMPANY AGAINST FOREIGN TAKEOVERS FOREVER A GOLDEN SHARE WILL LIMIT VOTING RIGHTS OVER A SET THRESHOLD PLACE ONE OR TWO NONVOTING GOVERNMENT APPOINTEES ON THE COMPANY'S BOARD AND GRANT THE GOVERNMENT A VETO OVER THE SALE OF ANY ASSETS IT DEEMS ESSENTIAL TO THE NATIONAL INTEREST 9305270027 930527 BUSINESS BRIEF COMPUWARE CORP OFFERING OF 3 MILLION SHARES AND ACQUISITION ANNOUNCED COMPUWARE CORP SAID IT PLANS A SECONDARY PUBLIC OFFERING OF THREE MILLION COMMON SHARES AND AGREED TO ACQUIRE A CLOSELY HELD SOFTWARE COMPANY COMPUWARE A FARMINGTON HILLS MICH DEVELOPER OF SOFTWARE SYSTEMS SAID THE SHARES WILL BE OFFERED AND SOLD BY CERTAIN SHAREHOLDERS PROCEEDS FROM THE PROPOSED PUBLIC OFFERING WILL BE GIVEN TO THE SELLING SHAREHOLDERS COMPUWARE SAID ON MARCH 31 COMPUWARE HAD ABOUT 376 MILLION SHARES OUTSTANDING SEPARATELY THE COMPUTER SOFTWARE CONCERN SAID IT AGREED TO PURCHASE ECOSYSTEMS SOFTWARE INC CUPERTINO CALIF COMPUWARE SAID IT WILL ISSUE 740000 SHARES OF ITS COMMON STOCK TO ECOSYSTEMS SHAREHOLDERS 9305270026 930527 POLITICS & POLICY CLINTON TO HIRE AIDE TO REFOCUS HIS PRESIDENCY DEMOCRATIC STRATEGIST SASSO NEW YORK LAWYER ICKES ARE LEADING CANDIDATES BY MICHAEL K FRISBY AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS ON THE VERGE OF BRINGING IN A SEASONED POLITICAL OPERATIVE TO HELP RESCUE HIS PROBLEMPLAGUED PRESIDENCY THE TWO LEADING CANDIDATES ACCORDING TO ADMINISTRATION OFFICIALS ARE JOHN SASSO A RESPECTED DEMOCRATIC STRATEGIST AND HAROLD ICKES A CLINTON FAMILY FRIEND AND NEW YORK ATTORNEY CLINTON ADVISERS STRESSED THAT NO FINAL DECISIONS HAVE BEEN MADE AND THAT OTHER CANDIDATES ARE UNDER CONSIDERATION INCLUDING FORMER HOUSE DEMOCRATIC WHIP TONY COELHO NOW A NEW YORK INVESTMENT BANKER TO JOIN CHIEF OF STAFF THOMAS MACK MCLARTY'S OFFICE BUT IN THE WAKE OF EMBARRASSING MISCUES SUCH AS THE FIRING OF THE WHITE HOUSE TRAVEL OFFICE AN INEPT LOBBYING OPERATION ON CAPITOL HILL AND HIS HAIRCUT ON THE RUNWAY IN LOS ANGELES THE PRESIDENT REPORTEDLY REALIZES THAT HIS STAFF LACKS NEEDED SAVVY AND STATURE MR CLINTON SEEKING ADVICE FROM HIS FRIENDS WITH THE MOST WASHINGTON EXPERIENCE MET FOR SEVERAL HOURS LATE TUESDAY WITH CONFIDANTS VERNON JORDAN A WASHINGTON LAWYER AND SECRETARY OF STATE WARREN CHRISTOPHER WHO WERE SEEN LEAVING THE WHITE HOUSE TOGETHER THAT NIGHT MR CLINTON WAS TO MEET LAST NIGHT WITH MR MCLARTY AND HIS DEPUTY ROY NEEL TO DISCUSS POSSIBLE STAFF CHANGES THE PRESIDENT ISN'T EXPECTED TO MAKE ANY FINAL DECISIONS UNTIL AFTER THE HOUSE VOTES ON HIS ECONOMIC PACKAGE BUT ASSOCIATES CONCEDE THAT THE PRESIDENT'S GREATEST NEED IS FOR SOMEONE LIKE MR SASSO WHO IS WELLVERSED IN BOTH POLITICS AND GOVERNANCE WHOEVER IS CHOSEN PROBABLY WILL WORK WITH MR MCLARTY ALTHOUGH MR MCLARTY IS A CHILDHOOD FRIEND OF THE PRESIDENT AND HAS ENORMOUS PERSONAL INFLUENCE WITH MR CLINTON AND THE FIRST LADY HE LACKS WASHINGTON EXPERIENCE OTHER DEMOCRATS WHO HAVE TALKED WITH WHITE HOUSE PEOPLE ABOUT THEIR PROBLEMS SAY THAT ANY NEW AIDE WOULD BE DOOMED TO FAIL IF HE OR SHE CAN'T KEEP MR CLINTON FROM BECOMING ENTANGLED IN MINOR MATTERS THEY SAY THE PRESIDENT MUST BE DISCIPLINED TO CONCENTRATE ON THE BROADEST GOALS OF HIS ADMINISTRATION SUCH AS HIS ECONOMIC PACKAGE HEALTHCARE REFORM AND HIS CAMPAIGN PLEDGE TO BE A NEW DEMOCRAT MR SASSO IS WIDELY CONSIDERED A VERY EFFICIENT MANAGER WITH ENORMOUS POLITICAL SKILLS HE NOT ONLY DIRECTED THE EARLY AND LATTER PART OF MICHAEL DUKAKIS'S 1988 PRESIDENTIAL CAMPAIGN BUT ALSO RAN THE MASSACHUSETTS GOVERNOR'S OFFICE SOME CITE THE COLLAPSE OF THE DUKAKIS CAMPAIGN IN HIS ABSENCE AS THE BEST GAUGE OF HIS SKILLS IN 1987 MR SASSO EMBARRASSED THE DUKAKIS CAMPAIGN BY SURREPTITIOUSLY LEAKING DAMAGING MATERIAL ABOUT A DUKAKIS RIVAL SEN JOSEPH BIDEN TO NEWSPAPERS MR DUKAKIS MADE HIM RESIGN BUT MR SASSO RETURNED TO THE CAMPAIGN IN SEPTEMBER 1988 QUESTIONS SURROUNDING OTHERS SOME QUESTIONS ALSO WOULD BE RAISED ABOUT SEVERAL OTHERS BEING CONSIDERED FOR THE WHITE HOUSE POST MR COELHO RESIGNED FROM THE HOUSE UNDER A CLOUD AMID ALLEGATIONS CONCERNING IRREGULARITIES IN CERTAIN INVESTMENTS HE MADE IN JUNK BONDS AND MR ICKES WHO WAS SLATED FOR A DEPUTY SLOT DURING THE TRANSITION HAS BEEN CRITICIZED FOR REPRESENTING A NEW YORK UNION WITH TIES TO ORGANIZED CRIME BOTH MEN HOWEVER HAVE THEIR STRENGTHS MR COELHO IS A STUDENT OF CAPITOL HILL AND AN EXPERT IN LEGISLATIVE STRATEGY AS WELL AS ELECTORAL POLITICS MR ICKES IS SEEN AS A TOUGHMINDED MANAGER WHO WOULD FORCE THE STAFF AND POSSIBLY EVEN MR CLINTON TO BE MORE DISCIPLINED NEITHER MR SASSO NOR MR ICKES HAS WASHINGTON EXPERIENCE ALTHOUGH THEY ARE WIDELY RESPECTED FOR THEIR POLITICAL SKILLS IN OTHER POSSIBLE CHANGES THE WHITE HOUSE MAY ALLOW COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS TO HAVE MORE OF A POLICY AND POLITICAL ROLE AND IT MAY REVAMP ITS POLITICAL OPERATION WHICH IS SEEN AS SUFFERING FROM WEAK LEADERSHIP MOREOVER AN EFFORT WILL LIKELY BE MADE TO BRING MORE POLITICAL SAVVY INTO THE COUNSEL'S OFFICE ITS DIRECTOR BERNARD NUSSBAUM HAS CAUSED THE WHITE HOUSE EMBARRASSMENT BY COMMUNICATING DIRECTLY WITH THE FEDERAL BUREAU OF INVESTIGATION ABOUT THE WHITE HOUSE TRAVEL OFFICE RATHER THAN GOING THROUGH ATTORNEY GENERAL JANET RENO A POTENTIAL OBSTACLE TO ANY CHANGES MIGHT BE HILLARY RODHAM CLINTON AIDES SAY THAT ONE PROBLEM IS THE NUMBER OF FREE AGENTS WHO BYPASS THE STAFF AND OFFER ADVICE TO THE PRESIDENT AND HIS WIFE BUT SEVERAL OF MRS CLINTON'S CLOSE CONFIDANTS SUCH AS NEW YORK LAWYER SUSAN THOMASES MAY WELL OPPOSE ANY STAFF CHANGES THAT MIGHT THREATEN THEIR FREEWHEELING WAYS AT THE WHITE HOUSE ADDING TO MR CLINTON'S WOES ROSS PEROT FIRED OFF HIS HARSHEST CRITICISMS YET OF THE PRESIDENT'S PERFORMANCE AND QUALIFICATIONS TO SERVE IN THE OVAL OFFICE IN AN INTERVIEW TAPED FOR BROADCAST ON THE PUBLIC BROADCASTING SYSTEM THE TEXAS BILLIONAIRE SAID MR CLINTON DOES NOT HAVE THE BACKGROUND OR EXPERIENCE FOR THE MOST DIFFICULT JOB IN THE WORLD IF YOU WERE INTERVIEWING HIM FOR YOUR COMPANY AND YOU HAD A MEDIUMSIZED COMPANY YOU WOULDN'T CONSIDER GIVING HIM A JOB ANYWHERE ABOVE MIDDLE MANAGEMENT WHEN HE WAS AN INDEPENDENT PRESIDENTIAL CANDIDATE LAST YEAR MR PEROT SPENT MUCH OF HIS TIME IMPLICITLY OR EXPLICITLY CRITICIZING PRESIDENT BUSH AND THE REPUBLICAN PARTY DECLARING AT ONE POINT THAT THE DEMOCRATIC PARTY HAD BEEN REVITALIZED BUT IN THE INTERVIEW TAPED TUESDAY IN DALLAS MR PEROT SAID HIS WISH NOW IS FOR THE REPUBLICANS TO GET OVER THE FUNERAL TO REVITALIZE THEMSELVES AND HAVE STRONG LEADERSHIP AND TO HAVE STRONG POSITIVE CONSTRUCTIVE PROGRAMS MEANWHILE A FORMER CHARTERAIRLINE EXECUTIVE DENIED ALLEGATIONS THAT THE WHITE HOUSE SAID FIGURED IN ITS DECISION TO DISMISS ITS TRAVEL STAFF CHARLES CAUDLE FORMER PRESIDENT OF AIRLINE OF THE AMERICAS ACCUSED TELEVISION PRODUCER HARRY THOMASON AND HIS PARTNER IN AN AIRCRAFTCONSULTING COMPANY DARNELL MARTENS OF MISREPRESENTING THE CHARTER AIRLINE'S RELATIONSHIP WITH THE TRAVEL STAFF AT A NEWS CONFERENCE HERE MR CAUDLE POINTED OUT WHAT HE CALLED ERRORS AND UNTRUTHS IN A MEMO DRAFTED BY MR MARTENS AND GIVEN BY MR THOMASON TO CLINTON AIDE DAVID WATKINS MR CAUDLE DENIED ALLEGATIONS IN THE MEMO THAT AOA BASED IN SMYRNA TENN LET MEMBERS OF THE WHITE HOUSE PRESS CORPS FLY FREE ON CERTAIN TRIPS TO INSURE GOOD PRESS COVERAGE OF BUSH CAMPAIGN APPEARANCES AND THAT THE AIRLINE TRIED UNSUCCESSFULLY TO HAVE THE FREE TRAVEL DECLARED CAMPAIGN CONTRIBUTIONS THE MEMO ITSELF SAID THAT THE CLINTON CAMPAIGN COMPLAINED TO THE FEDERAL ELECTION COMMISSION BUT YESTERDAY THE AGENCY COULDN'T FIND ANY RECORD OF SUCH A COMPLAINT MR CAUDLE ALSO DENIED PAYING ANY BRIBES OR KICKBACKS LAST WEEK THE WHITE HOUSE PRIVATELY SAID THE FBI WANTED TO INVESTIGATE POSSIBLE KICKBACKS INVOLVING THE TRAVEL STAFF MR CAUDLE SAID THAT AOA NOW CALLED ULTRAIR INC WON THE WHITE HOUSE BUSINESS DURING THE LAST SIX MONTHS OF THE 1992 CAMPAIGN BECAUSE OF GREAT SERVICE AT A REASONABLE PRICE MR MARTENS WAS IN ENGLAND AND COULDN'T BE REACHED TO COMMENT MR THOMASON SAID HE HADN'T READ THE MEMO UNTIL A FEW DAYS AGO SEPARATELY A JUSTICE DEPARTMENT SPOKESMAN SAID A REVIEW OF CONTACTS BETWEEN CLINTON ADMINISTRATION OFFICIALS AND FEDERAL BUREAU OF INVESTIGATION AGENTS INDICATED THE WHITE HOUSE DIDN'T IMPROPERLY INFLUENCE THE BUREAU REGARDING ITS INVESTIGATION OF FINANCIAL MISMANAGEMENT IN THE WHITE HOUSE TRAVEL OFFICE AN FBI REVIEW OF THOSE CONTACTS IS CONTINUING BRUCE INGERSOLL CONTRIBUTED TO THIS ARTICLE 9305270025 930527 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN FOR SALE AGAIN HURRY REALTORS AND BUILDERS PILE ON PROMOS AND PRESSURE TRYING TO CAPITALIZE ON PENTUP DEMAND AND FEAR THAT LOW MORTGAGE RATES MAY RISE MANY FIRMS READY FOR A BIG MEMORIAL DAY WEEKEND PRUDENTIAL CALIFORNIA REALTY IN MISSION VIEJO ASSIGNS AN EMPLOYEE TO CLIP STORIES ON INTEREST RATES FOR AGENTS TO CITE ON THE EAST COAST WEICHERT REALTORS PLANS 1000 OPEN HOUSES THIS WEEKEND UP SUBSTANTIALLY FROM LAST YEAR ATLANTA'S HARRY NORMAN REALTORS INC INVITES LENDERS TO ITS OPEN HOUSES TO DISCUSS RATES CHICAGOAREA AGENTS SEE A JUMP IN INQUIRIES RE/MAX LINCOLN PARK SAYS IT HAS OVER 30 MORE WOULDBE BUYERS THAN A YEAR AGO DITTO FOR DRAPER & KRAMER INC IN NEW JERSEY HOME BUILDER HOVNANIAN ENTERPRISES OFFERS FREE DISPOSABLE CAMERAS TO THE FIRST 1000 VISITORS TO A NEW DEVELOPMENT BUT NOT EVERYONE ROLLS OUT HOLIDAY PROMOTIONS KAUFMAN & BROAD HOME CORP IN LOS ANGELES STICKS TO BUSINESS AS USUAL JENNY PRUITT & ASSOCIATES REALTORS IN ATLANTA WARNS OPEN HOUSES MAY SUFFER FROM PICKEDOVER STOCK BUT OPTIMISM RULES FOR REALTOR JIM WEICHERT IF IT HAS A DOOR ON IT IN '93 IT'LL SELL HE SAYS HUD CREAM AND CABRINI GREEN SPLASH NEW COLORS ON AN EYEOPENING PAINT CHART TWO NEW YORK ARTISTS DEVELOP A PAINT CHART AIMED AT INFORMING PEOPLE ABOUT THE ROLE OF PUBLIC HOUSING IN THE US THE 50 HUES WHICH WILL BE AVAILABLE IN TRUE VALUE HARDWARE STORES INCLUDE A BRIEF HISTORY OF EACH COLOR'S NAMESAKE ARTIST MEL ZIEGLER WHO ALONG WITH KATE ERICSON CREATED THE CHART SAYS THE IDEA ISN'T TO IDEALIZE LIFE IN THE PROJECTS BUT TO SHOW THAT PUBLIC HOUSING IS AN IMPORTANT PART OF AMERICAN CULTURE THAT HAS TO BE DEALT WITH SPONSORED BY SCULPTURE CHICAGO A GROUP FOCUSING ON ART IN PUBLIC PLACES THE CHART IS PART OF AN EIGHTPROJECT EXHIBIT PLANNED FOR SUMMER BROCHURES WITH COLOR SQUARES WILL LIST A SHADE LIKE FANNIE MAE LILAC ALONG WITH A NOTE ON WHEN AND WHY THE MORTGAGE PROGRAM WAS CREATED HUD CREAM WILL MATCH THE SHADE OF THE AGENCY'S BUILDING IN WASHINGTON HOUSING ACT SUNLIGHT IS A BRIGHT YELLOW ACCOMPANIED BY A NOTE ON THE CREATION OF THE ACT RED LINING IS CRIMSON EXPORTERS FEAR THE OPENRATE SEAS IF US CARRIERS REFLAG USFLAG SHIP LINES INTENSIFY THREATS TO REGISTER FLEETS OVERSEAS AFTER CLINTON SCUTTLES A PACKAGE OF SUBSIDIES AND REGULATORY RELIEF MUCH TO THE CHAGRIN OF EXPORTERS USFLAG SHIPS CARRY ABOUT 20 OF CONTAINER CARGO ENOUGH TO KEEP FOREIGN COMPETITORS' RATES HONEST SAY EXPORTERS WITHOUT A USFLAG PRESENCE WE'D BE AT THE MERCY OF FOREIGN COMPETITION SAYS WILLIAM MCCURDY JR OF DUPONT CO HE IS NOT THE ONLY EXPORTER WORRIED RATES WOULD RISE OFFICIALS AT COORS BREWING CO HIMONT USA INC AND IMPRESSIONS IMPORTS INC ALSO FAVOR THE USFLAG SHIPS FOR BOTH PATRIOTIC AND ECONOMIC REASONS ONLY AMERICAN INTERESTS WILL FOSTER AMERICAN INTERESTS SAYS BOB GRANATELLI OF HIMONT A BIG EXPORTER OF POLYPROPYLENE PLASTIC RESIN BUT EXPORTERS LIKE EASTMAN KODAK CO'S CHEMICAL SUBSIDIARY SAY SWITCHING TO A FOREIGN FLAG COULD TRIM COSTS FOR US CARRIERS AND MAKE THEM MORE COMPETITIVE OTHERS LIKE CALIFORNIA'S BLUE DIAMOND GROWERS WON'T HELP US CARRIERS WHO SIDED WITH FOREIGNERS IN CARTELS POP GOES THE ANNUAL INTERVISUAL BOOKS INC A SANTA MONICA CALIF PRINTER OF CHILDREN'S NOVELTY BOOKS SLIPS ITS ANNUAL REPORT INTO A POPUP BOOK THE COMPANY SAYS IT JUST RAN OFF AN EXTRA 5000 COPIES OF THE POPUP FAVORITE HAUNTED HOUSE BY JAN PIENKOWSKI AND ADDED THE REPORT UP FRONT FIRST GREASE NOW BLOOD MAY BE THE FOODSTUFF OF BACTERIA DESIGNED TO DEVOUR WASTE ENVIRONMENTAL BIOTECH SARASOTA FLA SAYS IT IS WORKING ON A BACTERIA THAT EATS WASTE BLOOD A TOUGH DISPOSAL JOB FOR HOSPITALS AND OTHERS EARLIER THE FIRM ENGINEERED BACTERIA THAT CONSUME GREASE BUILDING BLOCKS GO TO 6300 EMPLOYEES OF MERIDIAN BANCORP READING PA AS PART OF A TEAMWORK PROJECT TO MARK ITS 10TH ANNIVERSARY WORKERS ARE SUPPOSED TO TEAM UP TO BUILD SOMETHING THAT REFLECTS THE FIRM'S BUSINESS STRATEGY TRAILING THE PACK IN AN INDUSTRY THEY ONCE LED RACETRACKS RUN FOR THEIR LIVES THE SURGE IN LOTTERIES CASINOS AND OFFTRACK BETTING PARLORS FORCE RACETRACKS TO COME UP WITH NEW GAMES AND BUSINESSES HOLLYWOOD PARK OPENS A CARD CLUB FOR THOSE WHO PREFER POKER TO PONIES OTHER TRACKS ADD VIDEO POKER LOUISIANA DOWNS COVERS ITS BETS WITH PLANS TO RUN A RIVERBOAT CASINO WHILE EXPANDING SIMULCAST OPERATIONS SANTA ANITA BRANCHED INTO REAL ESTATE AND NOW GETS 45 OF INCOME FROM NONTRACK PROPERTY BUT NEW JERSEY'S TROUBLED GARDEN STATE PARK IS ON THE BLOCK SIMULCASTING OF OTHER TRACKS' RACES HAS HELPED COURSES' REVENUE BUT TRACK OPERATORS SAY THEIR BIG CHANCE LIES AHEAD IN INTERACTIVE BETTING WHEREBY PEOPLE AT HOME WAGER VIA A BLACK BOX CABLE SYSTEM BY BROADENING THE FIELD PHONE BETTING IN THE FUTURE COULD BE THE LIFEBLOOD FOR RACING SAYS HELEN WILES AN OFFICIAL OF PHILADELPHIA PARK THE PARK ONE OF A FEW THAT CURRENTLY HAS SUCH BETTING DOES ABOUT 150000 A DAY OF PHONE BUSINESS SHE SAYS SANTA ANITA FIGURES THE SPENDING OF 25 OTB PATRONS IS EQUAL TO ONE TRACK BETTOR WHO PAYS TO PARK AND DINE BRIEFS A NEW YORK STATE GROUP HELPING TO REGULATE NAIL SALONS AND OTHERS TAKES THE TITLE OF APPEARANCE ENHANCEMENT ADVISORY COMMITTEE STOOZ RECORDS IN MANHATTAN SPECIALIZES IN VINTAGE RECORDS OR AS STOOZ PUTS IT EXPERIENCED VINYL 9305270024 930527 WHO'S NEWS BIRD CORP BIRD CORP DEDHAM MASS JOSEPH VECCHIOLLA WAS NAMED CHIEF FINANCIAL OFFICER AND VICE PRESIDENT OF THIS BUILDING MATERIALS AND ENVIRONMENTAL SERVICES CONCERN EFFECTIVE TUESDAY HE PREVIOUSLY WAS CHIEF FINANCIAL OFFICER AT HORIZON CELLULAR TELEPHONE CO WILLIAM A KRIVSKY AN EXECUTIVE VICE PRESIDENT WHO WAS CHIEF FINANCIAL OFFICER WILL BE IN CHARGE OF BIRD'S CORPORATE DEVELOPMENT HUMAN RESOURCES AND ORGANIZATIONAL FUNCTIONS 9305270023 930527 REVIEW & OUTLOOK EDITORIAL THE TAX BILL'S SUPPORTERS DAN ROSTENKOWSKI'S WAYS AND MEANS COMMITTEE HAS PUT OUT A LIST THIS WEEK OF THE HIGHVOLTAGE SUPPORT IT ROUNDED UP IN SUPPORT OF PRESIDENT CLINTON'S TAX BILL THIS RECALL IS THE TAX BILL FROM THE PRESIDENT WHO HAS DECLARED WAR ON THE SPECIAL INTERESTS CHAIRMAN ROSTENKOWSKI SAID WE SELDOM SEE TAXPAYERS LOBBYING FOR A BILL THAT WILL RAISE THEIR TAXES BUT THAT IS WHAT IS REFLECTED IN THESE LETTERS THE CORPORATIONS LISTED AS ON BOARD FOR THE CLINTONROSTENKOWSKI TAX INCREASES INCLUDE SOMEHOW ALL THESE COMMERCIAL INTERESTS CAN FIND COMMON GROUND WITH THE FOLLOWING UNION INTERESTS AFSCME THE UAW THE NATIONAL EDUCATION ASSOCIATION THE INTERNATIONAL LADIES' GARMENT WORKERS UNION COMMUNICATIONS WORKERS OF AMERICA THE INTERNATIONAL UNION OF ELECTRONIC ELECTRICAL AND FURNITURE WORKERS THE UNITED TRANSPORTATION UNION THE FEDERATION OF GOVERNMENT EMPLOYEES AND THE FEDERATION OF TEACHERS THE LIST FROM GUCCI GULCH RUNS ON AND ON WITH GROUPS SUCH AS THE ASSOCIATION OF LOCAL HOUSING FINANCE AGENCIES THE TRUCK RENTING AND LEASING ASSOCIATION THE NATIONAL ASSOCIATION OF REALTORS THE COALITION TO PRESERVE THE LOWINCOME TAX CREDIT FRIENDS OF THE EARTH THE COUNCIL OF STATE HOUSING AGENCIES THE UNITED METHODIST CHURCH AND THE AMERICAN COUNCIL ON EDUCATION MR ROSTENKOWSKI SAYS ALL THIS PROVES THAT THERE'S BROAD SUPPORT FOR THIS BILL THROUGHOUT THE NATION WHAT IT LOOKS LIKE TO US IS BIG BUSINESS BIG UNIONS BELTWAY POLS AND THE PUBLICSPENDING LOBBY COLLUDING TO DUMP THE BURDEN ON EVERYONE ELSE AGAIN BUT SOMEONE'S WATCHING LAST WEEK WE NOTED THAT THE CLINTON TAX BILL WILL ALMOST CERTAINLY GO TO THE FLOOR TODAY UNDER A CLOSED RULE THAT WILL BAR ANY AMENDMENT TO INCLUDE SPENDING CAPS OR REPLACE THE ENERGY TAX THE LEADERSHIP USES CLOSED RULES ROUTINELY NOW TO SUPPRESS REAL CHOICES ON THE BUDGET SEVERAL GROUPS THAT RATE LEGISLATORS' PERFORMANCES SAY THEY'LL COUNT THE FLOOR VOTE APPROVING THE CLOSED RULE AS A KEY VOTE TO ALLOW THE ENTIRE TAX PACKAGE TO PASS INTACT THE GROUPS INCLUDE AMERICANS FOR TAX REFORM THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS NATIONAL TAXPAYERS UNION CITIZENS AGAINST GOVERNMENT WASTE CITIZENS FOR A SOUND ECONOMY NATIONAL ASSOCIATION OF WHOLESALE GROCERS AND THE NATIONAL ASSOCIATION OF MANUFACTURERS THE POINT IS THAT MEMBERS SHOULDN'T BE ABLE TO CLAIM THEY OPPOSED PARTS OF THE TAX BILL BUT WERE HELPLESS TO AMEND IT A VOTE FOR THE CLOSED RULE IS A VOTE FOR THE LARGEST TAX INCREASE IN AMERICAN HISTORY 9305270022 930527 LETTERS TO THE EDITOR HEALTH CARE COSTS NO ONE IS RESPONSIBLE' YOUR APRIL 22 PAGE ONE ARTICLE ON US HEALTHCARE COSTS TOUCHES UPON A BASIC PROBLEM WITH OUR PRESENT HEALTHCARE SYSTEM THE SEPARATION OF RESPONSIBILITY FROM AUTHORITY PATIENTS HAVE AUTHORITY TO DEMAND A LOT OF HEALTH CARE WITHOUT HAVING MUCH RESPONSIBILITY FOR PAYING THE BILL DOCTORS AND HOSPITALS HAVE AUTHORITY TO PRESCRIBE AND DELIVER A LOT OF HEALTH CARE OFTEN A CASE OF THE SELLER DOING THE DEMANDING WHILE HAVING LITTLE RESPONSIBILITY FOR DEALING WITH PATIENTS' UNHAPPINESS WITH THE TAB THE DOCTOR AND PATIENT OFTEN RUN UP COSTS FAR IN EXCESS OF BENEFITS PARTICULARLY IN THE CASE OF PEOPLE NEAR DEATH BECAUSE NEITHER PARTY HAS INCENTIVE TO CONTROL COSTS WHEN A THIRD PARTY PAYS FOR MUCH OF THE US HEALTH BILL THAT THIRD PARTY IS THE GOVERNMENT SEPARATION OF RESPONSIBILITY FROM AUTHORITY EXTENDS THROUGHOUT MUCH OF THE RANGE OF SERVICES AND REDISTRIBUTION PROVIDED BY THE GOVERNMENT RESULTING IN EXTENSIVE WASTE WE COULD SUBSTANTIALLY REDUCE WASTE BY ADOPTING THE PRINCIPAL THAT AN INDIVIDUAL'S AUTHORITY TO CONSUME A PORTION OF SOCIETY'S SCARCE RESOURCES SHOULD BE CONTINGENT UPON HIS OR HER RESPONSIBILITY FOR PAYING AS LARGE A SHARE AS POSSIBLE OF THE COST OF THOSE RESOURCES THE GOVERNMENT MIGHT APPLY THIS PRINCIPLE IN THE HEALTHCARE CASE BY REPLACING MEDICAID MEDICARE AND OTHER PROGRAMS FOR THE POOR WITH A SYSTEM OF CLINICS AND HOSPITALS THAT WOULD RUN ON A BUDGET SET AT SOME POLITICALLY ACCEPTABLE LOWER FRACTION OF NATIONAL INCOME THAN IS NOW THE CASE THESE SUBSIDIZED CLINICS AND HOSPITALS WOULD BE AVAILABLE ONLY TO THE POOR WHO WOULD PAY SOME PORTION OF THE COST OF SERVICES RECEIVED AND WOULD RATION SERVICES ACCORDING TO THE LIKELIHOOD OF MAXIMIZING BENEFITS WITHIN THEIR LIMITED BUT ADEQUATE BUDGETS INDIVIDUALS IN THE REST OF SOCIETY WOULD OBTAIN THEIR OWN HEALTH CARE AND INSURANCE IN A COMPETITIVE MARKET HOWEVER THEY SAW FIT USING THEIR OWN INCOME INDIVIDUALLY OR IN GROUPS THAT COULD REDUCE PREMIUMS THROUGH POOLED RISK 9305270021 930527 FOREIGN EXCHANGE DOLLAR SINKS TO A NEW LOW AGAINST YEN DESPITE TREASURY AIDE CITING US AIMS BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR DROPPED TO A RECORD LOW AGAINST THE YEN WEDNESDAY AS THE US CURRENCY'S DOWNWARD MOMENTUM PROVED MORE POTENT THAN COMMENTS BY A SENIOR TREASURY OFFICIAL THAT THE US ISN'T SEEKING FURTHER STRENGTHENING OF THE YEN THE DOLLAR ENDED MOSTLY LOWER AGAINST OTHER MAJOR CURRENCIES ON ESSENTIALLY TECHNICAL FACTORS TRADERS SAID THE MARKET SHRUGGED OFF WEAKERTHANEXPECTED US DURABLEGOODS DATA AND THE BUNDESBANK'S DECISION TO LEAVE A KEY GERMAN INTEREST RATE UNCHANGED LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16278 MARKS DOWN FROM 16315 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10850 YEN DOWN FROM 10935 YEN STERLING WAS TRADING AT 15475 UP FROM 15425 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10815 YEN AND AT 16259 MARKS TRADERS SAID MOMENTUM AND TECHNICAL CONSIDERATIONS MAINTAINED THE DOLLAR'S LOWER BIAS AGAINST THE YEN BUT THEY SAID CONCERNS ABOUT THE INCREASING LIKELIHOOD OF CENTRAL BANK INTERVENTION TO SUPPORT THE DOLLAR KEPT THE MOVE FROM CONTINUING AT MONDAY'S HEATED PACE THE DOLLAR TUMBLED MORE THAN ONE YEN MONDAY THE DOWNSIDE LOOKS A BIT MORE DIFFICULT TUESDAY SAID BELAL KHAN SENIOR CUSTOMER DEALER AT BANK OF TOKYO MONDAY THE MARKET WENT IN ONE DIRECTION TODAY THINGS WERE A BIT MORE MIXED COMMENTS BY LAWRENCE SUMMERS TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS GAVE THE DOLLAR ITS GREATEST SUPPORT DURING THE DAY PLAYERS SAID IN TESTIMONY BEFORE A HOUSE COMMITTEE MR SUMMERS DEPARTED FROM HIS PREPARED TEXT AND STATED UNEQUIVOCALLY THAT THE US ISN'T SEEKING FURTHER APPRECIATION OF THE YEN HE TESTIFIED THAT THE US POSITION ON EXCHANGE RATES IS THAT THEY SHOULD REFLECT ECONOMIC FUNDAMENTALS AND THAT THE ARTIFICIAL MANIPULATION OF RATES IS INAPPROPRIATE IT WAS THE FIRST TIME A TREASURY OFFICIAL HAD MENTIONED THE JAPANESE CURRENCY BY NAME IN THE CONTEXT OF EXCHANGERATE MOVEMENTS SINCE FEB 19 WHEN SECRETARY LLOYD BENTSEN A GUEST OF THE NATIONAL PRESS CLUB IN WASHINGTON DC SAID HE WOULD LIKE TO SEE A STRONGER YEN MR BENTSEN'S COMMENTS AND THOSE OF OTHER SENIOR CLINTON ADMINISTRATION OFFICIALS SUPPORTING A STRONG YEN WERE CENTRAL TO THE YEN'S 11 APPRECIATION AGAINST THE DOLLAR BETWEEN FEBRUARY AND APRIL TRADERS HAVE SAID MRSUMMERS'S REMARKS FOLLOWED THE RELEASE MONDAY OF THE TREASURY'S SEMIANNUAL REPORT ON THE INTERNATIONAL ECONOMY THE REPORT SAID A FIRMER YEN MIGHT PLAY SOME ROLE IN NARROWING JAPAN'S TRADE IMBALANCE WITH THE US AND MARKET PARTICIPANTS SAID IT WAS A MAJOR FORCE BEHIND THE DOLLAR'S PLUNGE VERSUS THE YEN MONDAY THE DOLLAR ROSE FURTHER ON MR SUMMERS'S TESTIMONY BUT THE RALLY LASTED ONLY BRIEFLY BANK OF TOKYO'S MR KHAN SAID DESPITE CLINTON ADMINISTRATION BACKPEDALING ON INDICATIONS IT FAVORS A STRONG YEN THE SENSE THAT IT DOES WANT A FIRMER JAPANESE CURRENCY CONTINUES TO RESURFACE IN THE MARKET SAID PETER IVERSEN A TRADER AT SHAWMUT BANK OF BOSTON IN SEEKING TO EXPLAIN WHY MR SUMMERS'S TESTIMONY HAD LIMITED IMPACT THE MARKET IS CONVINCED THAT US POLICY IS TO SEE A STRONGER YEN BUT THERE ALSO IS A SENSE THE US DOESN'T WANT A TRADE WAR WITH JAPAN ABOUT IT MR KHAN SAID TRADERS SAID THERE WERE UNCONFIRMED RUMORS OF CENTRAL BANK INTERVENTION TO SUPPORT THE DOLLAR IN BOTH ASIAN AND NORTH AMERICAN TRADING THEY ADDED HOWEVER THAT IF INTERVENTION ACTUALLY OCCURRED IT HAD MINIMAL INFLUENCE BASED ON RECENT INTERVENTION PATTERNS ONLY THE BANK OF JAPAN IS LIKELY TO HAVE SERIOUS INTEREST IN QUELLING THE YEN'S RISE RIGHT NOW MR KHAN SAID AND ONE CENTRAL BANK ALONE CAN'T DO MUCH IN THIS MARKET ESPECIALLY IF INTERVENTION IS EXPECTED HE ADDED THE FEDERAL RESERVE PROBABLY WOULDN'T AUTHORIZE INTERVENTION TO BUOY THE US CURRENCY UNTIL DOLLAR WEAKNESS BEGAN TO SPILL OVER INTO THE US STOCK AND BOND MARKETS SAID CHARLES SPENCE CORPORATE FOREIGN EXCHANGE MANAGER AT STANDARD CHARTERED BANK OF LOS ANGELES NONETHELESS CONCERNS ABOUT THE POSSIBILITY OF COORDINATED INTERVENTION ARE MOUNTING AND THEY SERVED TO CHECK THE YEN'S ADVANCE MR KHAN SAID 9305270020 930527 TECHNOLOGY STOCK OF STORAGE TECHNOLOGY UP 11 ON FORECAST BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STORAGE TECHNOLOGY CORP SHARES JUMPED 11 AFTER THE COMPANY'S CHAIRMAN PREDICTED IMPROVED FINANCIAL RESULTS AND SAID HE HOPED SHIPMENTS OF THE LONGDELAYED ICEBERG DATASTORAGE SYSTEM COULD BEGIN BY THE FOURTH QUARTER RYAL POPPA CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF THE LOUISVILLE COLO COMPANY PREDICTED IMPROVED RESULTS IN 1993 AND 1994 HE REITERATED THAT STORAGE TECHNOLOGY EXPECTED TO BEGIN SHIPPING ITS ICEBERG SYSTEM BY THE FOURTH QUARTER ALTHOUGH THERE ARE NO GUARANTEES HE SPOKE AFTER THE COMPANY'S ANNUAL MEETING YESTERDAY IN NEW YORK ICEBERG WHICH CAN STORE MASSIVE AMOUNTS OF COMPUTER DATA ON INEXPENSIVE DISK DRIVES WAS EXPECTED TO GENERATE AS MUCH AS 50 MILLION IN REVENUE FOR THE COMPANY IN 1992 DESPITE SOME SHAREHOLDER CONCERN OVER ICEBERG THE COMPANY'S SHARES CLOSED AT 4175 UP 4125 ON THE NEW YORK STOCK EXCHANGE YESTERDAY MEANWHILE A STORAGE TECHNOLOGY SHAREHOLDER WHO IS A PLAINTIFF IN A CLASSACTION LAWSUIT AGAINST THE COMPANY ACCUSED SOME COMPANY OFFICIALS OF INSIDER TRADING THE SHAREHOLDER ALLEGED AT THE MEETING THAT THE OFFICERS HAD SOLD SIGNIFICANT QUANTITIES OF THE COMPANY'S SHARES IN EARLY 1992 WHEN THE STOCK WAS TRADING AROUND 70 AND THAT SALES OF THE SHARES WERE PROMPTED BY THE DIRECTORS' INSIDE KNOWLEDGE THAT THE ROLLOUT OF ICEBERG HAD BEEN DELAYED MR POPPA DENIED THE ALLEGATIONS AND DESCRIBED THE SHAREHOLDER'S SUIT AS FRIVOLOUS HE SAID THE COMPANY DIDN'T KNOW THE PRODUCT WAS LATE UNTIL MAY 1992 BY WHICH TIME THE SHARES HAD BEEN SOLD THE COMPANY SAID 45 MILLION OF ITS TOTAL 103 MILLION OF RESEARCH AND DEVELOPMENT EXPENSE WAS SPENT ON ICEBERG IN 1992 MR POPPA SAID THE COMPANY'S PERFORMANCE IN THE US AND UK WAS IMPROVING WHILE PERFORMANCE IN FRANCE AND SWEDEN WAS SOSO BECAUSE OF MONETARY TURMOIL AND WEAK ECONOMIES IN THOSE COUNTRIES HE SAID THE COMPANY'S RESULTS HAD BEEN HURT IN SOME OTHER EUROPEAN COUNTRIES AND JAPAN AND HE CREDITED DECLINING MAINTENANCE COSTS OF ITS PRODUCTS FOR INCREASING PROFITS MARGINS IN 1992 FELL SLIGHTLY TO 30 FROM 33 IN 1991 AND THE TREND WILL CONTINUE IN 1993 ALTHOUGH OVERALL BUSINESS SHOULD IMPROVE HE SAID 9305270019 930524 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST NATIONAL MUNI BOND FUNDS WEDNESDAY'S CLOSE ENAV FOR 5/14 WAS 1099 N/ANOT AVAILABLE OR NOT APPLICABLE VCONVERTED AT COMMERCIAL RAND RATE ZNOT TRADING ON ANY EXCHANGE