SOUTHWESTERN BELL CORP WHICH EARLIER THIS YEAR MOVED ITS HEADQUARTERS TO SAN ANTONIO FROM ST LOUIS SAID ITS TELECOMMUNICATIONS EQUIPMENT SALES UNIT WILL FOLLOW IT TO TEXAS THE REGIONAL TELECOMMUNICATIONS COMPANY SAID SOUTHWESTERN BELL TELECOM WILL MOVE ITS HEADQUARTERS STAFF OF 50 TO DALLAS ON TUESDAY THE UNIT EMPLOYS ABOUT 900 AND 150 ALREADY WORK IN THE DALLAS AREA ABOUT 200 EMPLOYEES WILL REMAIN IN ST LOUIS THE UNIT PROVIDES TELECOMMUNICATIONS PRODUCTS AND SERVICES TO BUSINESS CUSTOMERS IN TEXAS OKLAHOMA KANSAS ARKANSAS AND MISSOURI TWO OTHER SUBSIDIARIES ARE BASED IN DALLAS SOUTHWESTERN BELL MOBILE SYSTEMS ITS CELLULAR UNIT AND SOUTHWESTERN BELL TELEPHONE OF TEXAS SOUTHWESTERN BELL'S TOTAL EMPLOYMENT IS 59500 9305270017 930527 COMPUTERS AST TO ACQUIRE PC BUSINESS OF TANDY CORP BY KEN YAMADA AND KYLE POPE STAFF REPORTERS OF THE WALL STREET JOURNAL AST RESEARCH INC SAID IT AGREED TO ACQUIRE TANDY CORP'S PERSONAL COMPUTER BUSINESS FOR ABOUT 175 MILLION A MOVE THAT COULD VAULT AST INTO POSITION AS THE FOURTHLARGEST PC MANUFACTURER IN THE US AND HELP IT EXPAND INTO NEW MARKETS SUCH AS PENBASED COMPUTING AND MULTIMEDIA MACHINES FOR AST A SURVIVOR OF RECENT PRICE WARS THAT HAVE HURT MANY PC MAKERS THE ADDITION OF TANDY'S BUSINESS WILL PROVIDE SOME INNOVATIVE NEW PRODUCTS AND BETTER ECONOMIES OF SCALE COMPUTER MAKERS LIKE AST HAVE BEEN FORCED TO LOOK TO HIGHVOLUME SALES FOR PROFIT SAID ERIC LEWIS AN ANALYST WITH INTERNATIONAL DATA CORP THE FOCUS IS MORE ON TURNING UNITS OUT MORE EFFICIENTLY AND AT LOW COST FOR TANDY THE AST MOVE MARKS A SURPRISING CORPORATE FLIPFLOP IN JANUARY THE FORT WORTH TEXASBASED PARENT OF THE RADIO SHACK ELECTRONICS CHAIN SAID IT PLANNED TO SPIN OFF ITS COMPUTER MANUFACTURING OPERATIONS INTO TE ELECTRONICS INC A SEPARATELY TRADED AND MANAGED COMPANY IT ALSO REPRESENTS THE END OF AN ERA TANDY PIONEERED THE CONSUMER MARKET FOR PERSONAL COMPUTERS OFFERING SOME OF THE FIRST MODELS THROUGH ITS RADIO SHACK RETAIL STORES IN THE 1970S YESTERDAY IN OVERTHECOUNTER TRADING AST CLOSED AT 16125 UP 1 OR 66 TANDY AUSTIN TEXAS CLOSED AT 31125 UP 2 OR 69 ON THE NEW YORK STOCK EXCHANGE SAFI QURESHEY AST PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID AST SIGNED A LETTER OF INTENT TO ACQUIRE FOR NO MORE THAN 175 MILLION CERTAIN ASSETS AND ASSUME CERTAIN LIABILITIES OF TANDY'S COMPUTER SYSTEMS BUSINESS INCLUDING TANDY'S GRID UNIT WHICH DEVELOPS PENBASED COMPUTERS AND MANUFACTURING PLANTS IN SCOTLAND AND TEXAS MR QURESHEY SAID EXACT TERMS OF THE AGREEMENT WERE STILL BEING NEGOTIATED BUT THAT AST WOULD EITHER MAKE A LUMPSUM CASH PAYMENT OR MORE LIKELY PAY A SIGNIFICANT PORTION WITH THREEYEAR PROMISSORY NOTES MR QURESHEY SAID THE PLANNED ACQUISITION WOULD SERVE TO INCREASE AST'S MARKET SHARE ESTABLISHING IT AS ONE OF THE BIGGEST MANUFACTURERS AND SERVE IN PART TO HELP IT OBTAIN COMPONENTS THE DEAL WILL ALSO HELP AST ESTABLISH A DIRECT CONSUMER SALES CHANNEL THROUGH TANDY'S 6600 RADIO SHACK STORES HE SAID THE SCOTTISH MANUFACTURING FACILITY WILL HELP AST GROW ITS EUROPEAN SALES WHICH CURRENTLY MAKE UP ABOUT A QUARTER OF ITS TOTAL SALES HE SAID THE MERGER WOULD LEAPFROG AST OVER DELL COMPUTER CORP AS FOURTHLARGEST PC MANUFACTURER IN THE US ACCORDING TO INTERNATIONAL DATA CORP A MARKET RESEARCH FIRM IN THE FIRST QUARTER THIS YEAR AST AND TANDY SHIPPED A COMBINED TOTAL OF 190000 UNITS IN 1992 TANDY WAS THE NO 7 PRODUCER OF PERSONAL COMPUTERS FOLLOWED CLOSELY BY AST IN THE NO 8 SPOT THE TOP THREE PC MANUFACTURERS BASED ON UNITS SHIPPED ARE APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP AND COMPAQ COMPUTER CORP ACCORDING TO IDC AST IRVINE CALIF HAS SEEN ITS SALES MORE THAN DOUBLE DURING THE PAST FIVE YEARS DRIVEN IN PART BY ITS OWN RESEARCH AND DEVELOPMENT EFFORTS THAT HAVE PRODUCED SOME ACCLAIMED MODELS WITH THE TANDY DEAL AST GETS A COMMODITY THAT LATELY SEEMS TO BE IN SHORT SUPPLY COMPUTERMAKING CAPACITY SUCH PC MAKERS AS IBM COMPAQ AND DELL HAVE SEEN DEMAND FOR THEIR MACHINES ZOOM IN RECENT MONTHS THANKS TO CUTTHROAT INDUSTRY PRICING THAT HAS ATTRACTED A HUGE CLASS OF FIRSTTIME BUYERS AT ONE POINT THIS YEAR CAPACITYCONSTRAINED COMPAQ WAS ABLE TO FILL ONLY 50 OF THE ORDERS IT RECEIVED FROM ITS DEALERS FOR TANDY THE MOVE IS AN ABANDONMENT OF ITS QUEST TO REGAIN ITS STATURE AS A TECHNOLOGY LEADER THE COMPANY IN THE 1970S WAS AN EARLY PIONEER OF THE PERSONAL COMPUTER BUT ITS ANNOUCEMENT IN JANUARY THAT IT WOULD SPIN OFF THE BUSINESS NEVERTHELESS WAS GREETED WARMLY ON WALL STREET ANALYSTS IN RECENT YEARS HAVE GRUMBLED ABOUT A STEADILY SLIDING TANDY STOCK PRICE AND A PRODUCT LINE THAT OFTEN HAS BEEN OUT OF STEP WITH OTHER COMPUTER MAKERS RECENTLY THOUGH INVESTORS HAVE GROWN INCREASINGLY WARY ABOUT TE THE PROPOSED SPINOFF THOUGH THE NEW COMPANY WOULD HAVE BEEN A HIGHTECH HEAVYHITTER 1992 SALES WOULD HAVE BEEN ABOUT 15 BILLION THE OPERATION HAS RECENTLY BEEN UNPROFITABLE THE BUSINESS HAD A LOSS OF 9 MILLION IN THE LAST HALF OF 1992 AND 162 MILLION IN THIS YEAR'S FIRST QUARTER EVEN WORSE OFFICIALS SETTING UP THE NEW COMPANY SAID RAZORTHIN MARGINS IN THE PERSONAL COMPUTER BUSINESS WOULD HAVE KEPT THE COMPANY IN THE RED AT LEAST THROUGH THE SECOND QUARTER OF THIS YEAR THE OPERATION WAS REALLY HEADING SOUTH SAID WALTER WINNITZKI A TECHNOLOGY ANALYST AT DILLON READ IN NEW YORK IT BEGAN TO RAISE SOME QUESTIONS IN THE MINDS OF INVESTORS AS TO HOW RELIABLE THAT TE PIECE OF PAPER WAS THAT THEY WERE GOING TO BE GETTING SEPARATELY TANDY SAID IT IS LOOKING FOR BUYERS FOR ITS MEMTEK PRODUCTS AND O'SULLIVAN INDUSTRIES BUSINESSES AS WELL AS MOST OF THE REST OF ITS COMPUTERMANUFACTURING PLANTS THAT AREN'T BEING BOUGHT BY AST THOUGH THE DIVESTITURES WILL RESULT IN A 70 MILLION CHARGE TO EARNINGS DURING TANDY'S SECOND QUARTER WILLIAM C BOUSQUETTE TE CHAIRMAN SAID THE MOVE ULTIMATELY WILL BOOST TANDY'S EARNINGS MR BOUSQUETTE SAID THE ELIMINATION OF THE UNPROFITABLE MANUFACTURING OPERATIONS WILL INCREASE TANDY'S EARNINGS BY 5 IN THE THIRD AND FOURTH QUARTERS OF THIS YEAR AND BY 15 IN 1994 WE ARE GOING TO HAVE A MUCH MUCH STRONGER BALANCE SHEET AS A RESULT MR BOUSQUETTE SAID THE EXECUTIVE SAID TANDY EXPECTS TO RECEIVE 500 MILLION TO 600 MILLION FROM THE SALES OF ITS MANUFACTURING OPERATIONS INCLUDING THE 175 MILLION THE COMPANY IS ANTICIPATING FROM THE AST DEAL THAT MONEY HE SAID WOULD BE USED TO PAY DOWN DEBT BUY BACK TANDY SHARES AND FUND TANDY'S EXISTING RETAILING BUSINESSESNOW TANDY'S KEY FOCUS WE HAD CLEARLY DECIDED THAT WE WANTED TO BE PRIMARILY IN THE RETAIL BUSINESS SAID JOHN ROACH TANDY'S CHAIRMAN AT ANY GIVEN MOMENT YOU JUST HAVE TO LOOK AT THE HAND OF CARDS YOU HOLD AND SAY THIS IS WHAT'S BEST IN ADDITION TO RADIO SHACK TANDY OPERATES THE COMPUTER CITY CHAIN OF SUPERSTORES AS WELL AS THE INCREDIBLE UNIVERSE LINE OF MEGACENTERS AND THE SMALLER MCDUFF VIDEO CONCEPTS AND THE EDGE IN ELECTRONICS RETAIL CHAINS 9305270016 930527 GREYHOUND LINES APRIL TRAFFIC DALLAS GREYHOUND LINES INC SAID APRIL PASSENGER TRAFFIC FELL 07 TO 4663 MILLION REVENUE PASSENGER MILES FROM 4694 MILLION IN APRIL 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER TRAVELING ONE MILE THE BUS COMPANY ALSO SAID IT FILLED 538 OF ITS AVAILABLE SEATS DOWN FROM THE 545 LOAD FACTOR REPORTED A YEAR EARLIER 9305270015 930527 ECONOMY CLINTON'S 18 BILLION RUSSIAN AID PLAN CLEARS A HOUSE APPROPRIATIONS PANEL BY CARLA ANNE ROBBINS AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S PROMISED 18 BILLION RUSSIAN AID PACKAGE INCLUDING AN AMBITIOUS 500 MILLION INDUSTRIAL PRIVATIZATION FUND QUIETLY CLEARED ITS FIRST LEGISLATIVE HURDLE WINNING APPROVAL FROM A KEY HOUSE SUBCOMMITTEE THE CLINTON ADMINISTRATION PROPOSED THE AID PACKAGE AT A MIDAPRIL MINISTERIAL MEETING OF THE GROUP OF SEVEN LEADING INDUSTRIAL NATIONS AND OFFICIALS HAVE BEEN SCRAMBLING EVER SINCE TO FIGURE OUT HOW TO PAY FOR IT AS APPROVED BY THE HOUSE APPROPRIATIONS FOREIGN OPERATIONS SUBCOMMITTEE NEARLY 1 BILLION OF THE AID TO RUSSIA AND THE OTHER REPUBLICS WOULD BE TAKEN FROM THE DEFENSE BUDGET THE REMAINDER WOULD COME FROM FOREIGNAID ACCOUNTS ADMINISTRATION OFFICIALS SAID THAT ALL OF THE PROPOSED NEW SPENDING ON RUSSIA WOULD BE OFFSET BY CUTS IN OTHER PROGRAMS SO THAT THE AID WOULDN'T ADD TO THE DEFICITMAKING IT MORE POLITICALLY PALATABLE THE PACKAGE WOULD BE VOTED AT THE SAME TIME AS THE FISCAL 1994 FOREIGNAID REQUEST SO LEGISLATORS WON'T BE CALLED ON TO CAST TWO TOUGH VOTES BUT FINDING SAVINGS IN THE ALREADY PARED DOWN FOREIGNAID BUDGET WILL BE HARD ESPECIALLY AFTER THE HOUSE PANEL REMOVED 1 BILLION YESTERDAY FROM THE ADMINISTRATION'S FISCAL 1994 REQUEST THE 18 BILLION AID PACKAGE IS IN ADDITION TO 11 BILLION ALREADY ALLOCATED TO RUSSIA AND THE OTHER REPUBLICS IN THE ADMINISTRATION'S FISCAL 1994 BUDGET AND IT COULD STILL BE A TOUGH SELL ACKNOWLEDGED REP DAVID OBEY D WIS CHAIRMAN OF THE FOREIGN OPERATIONS SUBCOMMITTEE FOREIGN AID IS ALWAYS A TOUGH SELL AND THIS COULD BE EXCRUCIATING HE SAID BUT I THINK WE'VE GOT ENOUGH PEOPLE IN BOTH PARTIES TO WIN APPROVAL SEN PATRICK LEAHY D VT WHO HEADS THE SAME SUBCOMMITTEE FOR THE SENATE YESTERDAY CRITICIZED THE ADMINISTRATION FOR FAILING TO CONSULT MORE CLOSELY WITH CONGRESS EITHER BEFORE THE TOKYO MINISTERIAL MEETING OR SINCE HE SAID HE WASN'T SURE HOW THE MONEY WOULD BE SPENT THE PROBLEM WAS THEY ANNOUNCED THE PACKAGE BEFORE THEY KNEW WHERE THEY'D GET THE MONEY FROM HE SAID IN APPROVING THE PACKAGE THE SUBCOMMITTEE ACCEPTED THE CLINTON ADMINISTRATION'S PROPOSAL TO TAKE 979 MILLION IN SPENDING AUTHORITY FROM THE PENTAGON'S BUDGET FOR THE CURRENT FISCAL YEAR 630 MILLION FROM THIS YEAR'S FOREIGNAID BUDGET AND 200 MILLION FROM THE FISCAL 1994 FOREIGNAID BUDGET NONE OF THE MONEY IS EXPECTED TO BE SPENT UNTIL AFTER THE NEW FISCAL YEAR BEGINS OCT 1 OFFICIALS SAID THE MONEY WOULD BE USED TO HELP PRIVATIZE STATEOWNED INDUSTRIES ENCOURAGE SMALL BUSINESSES DEVELOP THE ENERGY SECTOR HOUSE RUSSIAN MILITARY OFFICERS IMPROVE NUCLEAR SAFETY AND EXPAND PEOPLE TO PEOPLE EXCHANGE PROGRAMS THE PACKAGE WAS INTENDED TO BOOST RUSSIAN PRESIDENT BORIS YELTSIN'S POLITICAL FORTUNES IN A NATIONWIDE REFERENDUM MR YELTSIN TRIUMPHED IN THAT VOTE AND HAS MOVED TO CONSOLIDATE HIS POWER BUT SINCE THEN MR CLINTON'S POLITICAL STANDING HAS DETERIORATED WITH THE SENATE BLOCKING HIS ECONOMIC STIMULUS PACKAGE AND NO GUARANTEE HE WILL WIN THE CURRENT BATTLE OVER HIS DEFICITREDUCTION PLAN TOP AIDES INSIST HOWEVER THAT RUSSIA REMAINS MR CLINTON'S TOP FOREIGN POLICY PRIORITY AND SAID THAT HE WOULD PERSONALLY LOBBY THE RUSSIAN AID REQUEST WITH CONGRESS AND THE AMERICAN PEOPLE WE DON'T EXPECT THIS TO BE AN EASY FIGHT SAID A SENIOR OFFICIAL BUT THE PRESIDENT IS PERSONALLY DETERMINED THAT WE WILL MEET OUR COMMITMENT AND GET IT DONE 9305270014 930527 WHEN CALLING ROOM SERVICE HERE YOU CAN ORDER FOOD FOR THOUGHT BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON AS FOUNDER OF TRANSCENDENTAL MEDITATION MAHARISHI MAHESH YOGI HAS DELIVERED HIS SPIRITUAL ADVICE INTO HOUSES AND HUTS ACROSS THE WORLD NOW FOLLOWERS OF THE BEARDED SEER ARE TRYING TO BRING A HIGHER STATE OF CONSCIOUSNESS INTO ANOTHER REALM ENTIRELY A RUNDOWN HOTEL IN MARCH THE WORLD PLAN EXECUTIVE COUNCIL THE INDIAN GURU'S NETHERLANDSBASED NONPROFIT GROUP ACQUIRED A DAYS INN IN DOWNTOWN HOUSTON FOR 2 MILLION RENAMED THE HEAVEN ON EARTH INN THE HOTEL SAYS CHANGES NOW UNDER WAY WILL RESULT IN FAR MORE THAN HASSLEFREE CHECKOUTS INSTEAD THE NEW OWNERS WANT TO SOOTHE TRAVELERS' SOULS AND IN THE PROCESS REJUVENATE THE HARD STREETS OF HOUSTON THE MAHARISHI HAS THE ULTIMATE GOAL OF CREATING WORLD PEACE AND WE'LL BE STARTING HERE SAYS MARGO WALMSLEY THE INN'S DIRECTOR OF MARKETING THE HEAVEN ON EARTH INN BY EMITTING POSITIVE ENERGY SHOULD REDUCE HOUSTON'S CRIME ILLNESS AND ACCIDENT RATES SHE SAYS IT SHOULD BE CHALLENGE ENOUGH TO JUST SAVE THE HOTEL WHICH WAS BUILT IN THE 1970S SURROUNDED BY PARKING LOTS AND BILLBOARDS THE 30STORY 600ROOM PROPERTY HAS BECOME A DOWNTOWN EYESORE THE NEW OWNERS FOR THEIR PART INTEND TO CONVERT THE BUILDING INTO A MAHARISHIINSPIRED UNIVERSITY BUT TO HELP FINANCE THE SCHOOL THEY HAVE DECIDED TO KEEP HALF THE ROOMS OPEN FOR GUESTS MAKE MUCH NEEDED REPAIRS AND CREATE A NEW AGE OF ENLIGHTENED INNKEEPING IN THE GUEST ROOMS GROOVED METAL RINGS HAVE BEEN PLACED ON LIGHT BULBS AND FILLED WITH AROMA OILS WHICH VAPORIZE FROM THE HEAT SMOKING WILL SOON BE PROHIBITED IN ALL 300 ROOMS AND CHEAP ROOM RATES OF 4995 A NIGHT ARE A PLUS THERE ARE ALSO MEDITATION ROOMS WITH A PHOTO OF THE 81YEAROLD MAHARISHI BUT THE KITCHEN NO LONGER OFFERS SUCH EARTHLY TEMPTATIONS AS ALCOHOL AND RED MEAT SO SOME GUESTS HAVE BEEN DOING THEIR MEDITATING ACROSS THE STREET AT THE LONE STAR SALOON WHERE BARTENDER JULIE MERTZ SYMPATHIZES WITH THIRSTY TRAVELERS IF YOU'RE PAYING FOR A HOTEL ROOM IT SHOULD BE UP TO THAT PERSON WHAT THEY WANT TO DRINK OR EAT SHE SAYS BUT BRUCE M BEAL THE HOTEL'S CHIEF OPERATING OFFICER SAYS ALL GUESTS EVEN NONBELIEVERS WILL BENEFIT FROM THE INN'S UNIQUE BRAND OF SERVICE IF WE HAVE FIVE OR SIX PEOPLE MEDITATING PEOPLE WILL FEEL THAT ELSEWHERE HE SAYS THEY'LL HAVE A WONDERFUL QUALITY OF SLEEP 9305270013 930527 LTV REORGANIZATION IS APPROVED BY JUDGE IN BANKRUPTCY COURT NEW YORK AP A FEDERAL BANKRUPTCY JUDGE APPROVED LTV CORP'S REORGANIZATION PLAN PUTTING THE END OF THE COMPANY'S NEARLY SEVENYEAR CHAPTER 11 RESTRUCTURING WITHIN REACH US BANKRUPTCY COURT JUDGE BURTON R LIFLAND SIGNED THE ORDER AFTER OVERRULING OBJECTIONS BY A HANDFUL OF THE STEEL COMPANY'S CREDITORS LTV STANDS TO EMERGE FROM BANKRUPTCYCOURT PROTECTION BY THE END OF JUNE AS A MUCH SMALLER COMPANY THE COMPANY'S COURT ODYSSEY HAS BEEN ONE OF THE LONGEST AND MOST COMPLEX BANKRUPTCY CASES IN US HISTORY LTV ENTERED BANKRUTPCY COURT IN THE SUMMER OF 1986 IT WAS A HUGE DEFENSE AND STEEL CONGLOMERATE THAT HAD RUN OUT OF CASH IT HAS SINCE SOLD ALL BUT ITS STEEL OPERATIONS AND OILFIELDEQUIPMENT BUSINESS LTV OFFICERS SPENT YESTERDAY TESTIFYING ON THE COMPANY'S ABILITY TO RETURN TO FINANCIAL HEALTH UNDER THE PLAN WE ARE NOT GOING TO FAIL AGAIN SAID LTV PRESIDENT J PETER KELLY WE ARE NOT GOING TO BE THE FIRST ONES TO FALL OFF THE MOUNTAINSIDE WHEN YOU APPROACH THAT ECONOMIC CLIFF AGAIN 9305270012 930527 MARKETING & MEDIA NBC'S FINAL TOAST TO CHEERS' GIVES IT A KEY RATINGS WIN NEW YORK NBC'S FAREWELL TO CHEERS GAVE THE NETWORK A SUBSTANTIAL VICTORY IN THE MAY SWEEPS RATINGS PERIOD WHICH ENDED LAST NIGHT NBC WHICH FINISHED A DISTANT THIRD IN HOUSEHOLD RATINGS FOR THE 199293 TELEVISION SEASON SAID IT WAS REASSURED THAT IT WAS STILL ABLE TO BE COMPETITIVE THE NETWORK ENDED THE SWEEPS ABOUT 15 RATINGS POINTS AHEAD OF CBS AND ABC WHICH WERE TIED FOR SECOND THE SWEEPS RATINGS ARE USED BY A NETWORK'S LOCAL STATIONS TO SET AD RATES FOR THE NEXT SEVERAL MONTHS THROUGH TUESDAY NIGHT NBC AVERAGED 127 OF THE NATION'S 931 MILLION HOUSEHOLDS COMPARED WITH AN 112 RATING FOR CBS AND ABC ACCORDING TO PRELIMINARY FIGURES FROM AC NIELSEN CO FINAL RATINGS WILL BE RELEASED TODAY THE NETWORK ALSO WON IN THE KEY DEMOGRAPHIC GROUPS OF MEN AND WOMEN AGES 18 TO 49 AND 25 TO 54 OVERALL NBC'S MAY RATINGS WERE UP 6 OVER LAST YEAR'S MAY SWEEPS WHEN THE NETWORK ALSO HAD A HIGHRATED FAREWELL TO THE COSBY SHOW CBS A UNIT OF CBS INC WAS DOWN 6 FROM LAST YEAR ABC A CAPITAL CITIES/ABC INC UNIT WAS OFF 3 NEWS CORP'S FOX BROADCASTING UNIT WHICH DREW AN AVERAGE OF 77 OF HOUSEHOLDS FOR ITS SIXNIGHT 14HOUR SCHEDULE WAS OFF 3 FROM THE YEAREARLIER SWEEPS EVEN WITHOUT THE EXTENDED MAY 20 CHEERS TOAST NBC A UNIT OF GENERAL ELECTRIC CO SAID IT HAD ACCUMULATED A HALFPOINT LEAD IN THE MAY SWEEPS THANKS LARGELY TO TWO MOVIES IT AIRED FRIED GREEN TOMATOES AND THE DOCUDRAMA IN THE LINE OF DUTY AMBUSH AT WACO WHICH WAS THE FIRST TELEVISION MOVIE ABOUT THE BRANCH DAVIDIAN CULT SHOOTOUT AND DREW A LARGER AUDIENCE THAN ANY MOVIE ON NBC DURING THE REGULAR SEASON THE VICTORY WAS NBC'S NINTH CONSECUTIVE WIN IN THE MAY SWEEPS 9305270010 930527 CORPORATE FOCUS FUJITSU READIES NEW PRODUCTS AS MAINFRAMES WANE COMPANY LIKE IBM HAS BEEN SLOW TO SEE THE DANGER AS INDUSTRY CHANGED BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO EVER SINCE THE EARLY 1960S WHEN IT WAS A TINY TELECOMMUNICATIONS MAKER WITH ANNUAL SALES OF ABOUT 6 MILLION FUJITSU LTD HAS HELD A SINGLE OVERRIDING AMBITION TO GROW UP AND TAKE ON INTERNATIONAL BUSINESS MACHINES CORP WHICH THEN DOMINATED THE WORLD'S COMPUTER INDUSTRY FUJITSU NOW THE WORLD'S SECONDLARGEST COMPUTER MAKER FINALLY SUCCEEDED IN TAKING AWAY THE LARGEST SHARE OF JAPAN'S MAINFRAME COMPUTER MARKET FROM IBM IN 1980 MORE THAN A DECADE LATER THE COMPANY IS STILL JAPAN'S ANSWER TO IBM ONLY THE COMPARISON IS NO LONGER FLATTERING LIKE IBM FUJITSU IS PRIMARILY A MAINFRAME MAKER IN A WORLD THAT IS INCREASINGLY DOWNSIZING FROM EXPENSIVE CENTRALIZED COMPUTERS TO NETWORKS OF SMALLER CHEAPER SYSTEMS SUCH AS WORKSTATIONS AND PERSONAL COMPUTERS EVEN WORSE ANALYSTS SAY FUJITSU HAS BEEN SLOW TO SEE THE DANGER HAVING ASSUMED THAT ITS MAINFRAME BUSINESS IS IN CYCLICAL INSTEAD OF LONGTERM DECLINE IBM TOO SOUGHT TO PROTECT ITS MAINFRAME BUSINESS FROM ENCROACHMENT BY PCS AND WORKSTATIONS IN THE MID1980S AND LOST ITS LEADERSHIP IN THE COMPUTER INDUSTRY AS A RESULT THE THINKING IN FUJITSU'S MANAGEMENT HAS BEEN THAT THE JAPANESE COMPUTER MARKET IS DIFFERENT AND THAT DOWNSIZING IS A FOREIGN PROBLEM SAYS STEVEN MYERS A TECHNOLOGY ANALYST WITH JARDINE FLEMING SECURITIES LTD IN TOKYO THAT'S PROBABLY NOT THE CORRECT FORECAST AND THERE'S BEEN AN ISSUE AS TO WHETHER FUJITSU UNDERSTANDS THIS OR NOT SO FAR THIS YEAR FUJITSU HAS CLEARLY BEEN HAVING A ROUGH TIME OF IT EARLIER THE COMPANY POSTED ITS FIRST NET LOSS EVER OF 192 BILLION YEN 1758 MILLION FOR THE FISCAL FIRST HALF ENDED LAST SEPT 30 TODAY FUJITSU IS SCHEDULED TO RELEASE ITS EARNINGS FOR THE FULL FISCAL YEAR WHICH ENDED MARCH 31 IT SAYS THE YEAR WAS ITS WORST SINCE IT LISTED ITS STOCK IN 1949 THE COMPANY HAS SAID THE RESULTS WILL SHOW MEAGER SALES GROWTH OF 02 AND FUJITSU'S FIRST FULLYEAR NET LOSS OF 38 BILLION YEN ALTHOUGH IT SAYS IT EXPECTS A RECOVERY IN THE CURRENT YEAR FOR ITS PART FUJITSU INSISTS THAT IT ISN'T LIKE IBM AT ALL IT ARGUES THAT MAINFRAME SALES WILL CONTINUE TO SUPPORT THE COMPANY FOR THE FORESEEABLE FUTURE ALTHOUGH IT ADDS THAT IT WILL PLACE MORE EMPHASIS ON SELLING SOFTWARE AND HELPING USERS CONNECT THEIR MAINFRAMES TO OTHER COMPUTERS A STRATEGY IBM HAS ALSO ADOPTED WHOLEHEARTEDLY FUJITSU ALSO CLAIMS THAT IT IS MOVING AGGRESSIVELY INTO OPEN COMPUTER SYSTEMS BY SELLING SMALLER COMPUTERS THAT UNLIKE MAINFRAMES ARE EASY TO CONNECT TO EACH OTHER AND THAT WILL RUN SOFTWARE FROM A VARIETY OF SOURCES WHAT'S MORE FUJITSU SAYS BY THE TIME ITS MAINFRAME SALES START TO SLIP IT WILL HAVE RELEASED NEW LINES OF PRODUCTS DESIGNED TO GIVE IT THE EDGE IN THE COMING AGE OF MULTIMEDIA ELECTRONICS WHICH IS SUPPOSED TO COMBINE TELECOMMUNICATIONS AND COMPUTERS TO DELIVER GAMES ENTERTAINMENT AND NEW INFORMATION SERVICES TO HOMES AND INDIVIDUALS ON THE MOVE IN FACT THE COMPANY'S OFFICIAL RHETORIC MAKES IT SOUND LESS LIKE IBM THAN A DYNAMIC COMBINATION OF APPLE COMPUTER INC AND AMERICAN TELEPHONE & TELEGRAPH CO BOTH OF WHICH HAVE AMBITIOUS PLANS TO DOMINATE MULTIMEDIA ELECTRONICS EVEN IN THE MIDDLE OF A CYCLICAL DOWNTURN WE'RE MOVING AHEAD WITH PRODUCTS THAT WILL CREATE NEW AREAS OF GROWTH SAYS MICHAEL BEIRNE A FUJITSU SPOKESMAN IN TOKYO THE PERSONAL COMPUTING AND MULTIMEDIA AREAS ARE PRODUCTS THAT WILL ONLY SEE TRUE FRUITION WHEN WE HAVE COMMUNICATIONS AND MEDIA THAT CAN HANDLE A TRUE MULTIMEDIA SOCIETY IN THEORY AT LEAST FUJITSU SHOULD BE WELLPREPPED FOR MULTIMEDIA ITS EXPERTISE IN HARDWARE RUNS MOST OF THE MULTIMEDIA GAMUT FROM ADVANCED TELEPHONE SWITCHES DESIGNED TO HANDLE HUGE AMOUNTS OF VIDEO DATA TO A MULTIMEDIA PC CALLED THE FMTOWNS WHICH FUJITSU INTRODUCED IN 1989 ANALYSTS HOWEVER POINT OUT THAT FUJITSU HASN'T HAD MUCH LUCK PIONEERING MARKETS THE COMPANY BUILT ITS MAINFRAME BUSINESS WITH MACHINES THAT WERE COMPATIBLE WITH THOSE MADE BY IBM AND LAUNCHED ITS FORAY INTO SUPERCOMPUTERS LARGELY AS A RESPONSE TO THE SUCCESS OF USBASED CRAY RESEARCH INC EVEN FUJITSU'S WORKSTATION BUSINESS A CRUCIAL ELEMENT IN ITS DEVELOPMENT OF OPEN SYSTEMS IS ALMOST ENTIRELY DEPENDENT ON CLOSE COOPERATION WITH SUN MICROSYSTEMS INC OF THE US NEARLY 75 OF THE WORKSTATIONS SOLD BY FUJITSU IN FACT ARE REALLY SUN WORKSTATIONS WITH A FUJITSU LABEL SLAPPED ON EVEN THE FMTOWNS FUJITSU'S MOST RECENT ATTEMPT TO PUT ITS STAMP ON THE COMPUTER INDUSTRY HASN'T YET DONE MUCH IN THE WAY OF SETTING MULTIMEDIA STANDARDS REVIEWERS LOVED THE COMPUTER WHICH FEATURES ADVANCED SOUND AND GRAPHICS AS WELL AS A BUILTIN CDROM PLAYER THAT ALLOWS USERS TO PLAY COMPACT DISKS PACKED WITH SOFTWARE AND VIDEO IMAGES THE FMTOWNS HOWEVER FACES TOUGH COMPETITION FROM APPLE'S MACINTOSH LINE AND FUJITSU SO FAR HASN'T TRIED TO SELL IT OVERSEAS EVEN IN JAPAN THE FMTOWNS ACCOUNTS FOR ONLY ABOUT 25 OF ALL PC SALES COMPARED WITH APPLE'S 83 SHARE THAT FACT DIDN'T STOP FUJITSU FROM LAUNCHING A SCALEDDOWN VERSION OF THE FMTOWNS IN FEBRUARY AIMED AT JAPANESE LIVING ROOMS THE NEW PRODUCT CALLED MARTY PLUGS INTO A TELEVISION ALSO FEATURES A CDROM AND IS DESIGNED TO COMPETE WITH NINTENDO CO'S GAME MACHINES ON ONE SIDE AND WITH A SIMILAR MULTIMEDIA PLAYER PLANNED BY CALIFORNIABASED STARTUP 3DO CO ON THE OTHER UNFORTUNATELY FOR FUJITSU A HEAVY ADVERTISING CAMPAIGN MAY NOT HAVE RAISED MARTY'S NAME RECOGNITION EVEN AMONG ANALYSTS WHO COVER CONSUMER ELECTRONICS I'M AFRAID I DON'T KNOW THE PRODUCT SAYS MASAMI FUJINO AN ANALYST WITH SBCI SECURITIES ASIA LTD HE ADDS THAT CONSUMERELECTRONICS FIRMS LIKE SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO ARE MORE LIKELY THAN FUJITSU TO SUCCEED WITH A HOME MULTIMEDIA MACHINE FUJITSU DOESN'T HAVE ANY CONSUMER EXPERIENCE OUTSIDE OF MULTIMEDIA MANY ANALYSTS SAY FUJITSU IS STILL COUNTING TOO HEAVILY ON MAINFRAMES ESPECIALLY GIVEN THAT GLOBAL MAINFRAME SALES FELL 16 LAST YEAR ACCORDING TO MARKETRESEARCH FIRM DATAQUEST INC WHILE SOME ANALYSTS ARGUE THAT FUJITSU HAS PLENTY OF ROOM TO SELL MORE MAINFRAMES EVEN AS THE OVERALL MARKET SHRINKS OTHERS ARE SKEPTICAL THE FASTEST WAY TO GO BROKE IS TO GO FOR AN EXPANDED SHARE OF A DECLINING MARKET SAYS PETER WOLFF A TECHNOLOGY ANALYST WITH KIDDER PEABODY & CO IN TOKYO STILL EVEN CRITICS LIKE MR MYERS SEE SIGNS THAT FUJITSU IS STRUGGLING WITH HOW TO PUT ITS DOWNSIZING BUSINESS ON TRACK THE MOST RECENT SIGN FUJITSU'S ANNOUNCED INTENT TO BUY ROSS TECHNOLOGY A SUBSIDIARY OF USBASED CYPRESS SEMICONDUCTOR CORP FOR 23 MILLION SINCE ROSS HAS HISTORICALLY DESIGNED MICROPROCESSORS FOR SUNBASED WORKSTATIONS MR MYERS SEES THE PURCHASE AS AN ATTEMPT BY FUJITSU'S WORKSTATION GROUP TO BUILD ITS CLOUT AT THE EXPENSE OF THE MAINFRAME DIVISION 9305270009 930527 MARKETSCAN BACKYARD BARBECUES MOVE BEYOND BASICS BY KATHLEEN DEVENY AMERICANS ARE EXPECTED TO FIRE UP THEIR GRILLS AT RECORD RATES THIS MEMORIAL DAY WEEKEND YET SALES OF SUCH TRADITIONAL BARBECUE FAVORITES AS PREPARED SAUCES HOT DOGS AND HAMBURGER BUNS ARE HARDLY SIZZLING AS CONSUMER TASTES HAVE EVOLVED FOOD EXPERTS SAY SO HAS BACKYARD FARE THESE DAYS COOKOUT CUISINE IS LIKELY TO INCLUDE LESS RED MEAT AND MORE FOODS THAT AREN'T ALWAYS COMPATIBLE WITH TRADITIONAL BARBECUE SAUCES INCLUDING CHICKEN FISH AND SUCH DELICACIES AS SHIITAKE MUSHROOMS BRUSHED WITH OLIVE OIL THAT DOESN'T SURPRISE STEVE LAZER 30 YEARS OLD WHO MANAGES A LABORATORY FOR A CONSUMERPRODUCTS COMPANY IN MINNEAPOLIS MR LAZER GRILLS FOR HIS FAMILY TWO OR THREE TIMES A WEEK EVEN DURING THE FRIGID WINTER BUT HE RARELY BUYS PREPARED SAUCE BECAUSE HE RARELY THROWS A SLAB OF RIBS ON THE COALS MORE OFTEN HE GRILLS POULTRY AMONG HIS SPECIALTIES CHICKEN WITH JAMAICAN SPICES AND WHOLE TURKEYS DATA GATHERED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE UNDERSCORE THE COOKOUT CHANGES SUPERMARKET SALES OF PREPARED BARBECUE SAUCES INCHED UP A MERE 18 DURING THE 52 WEEKS ENDED APRIL 18 SALES OF HOT DOGS FELL 57 WHILE RELISH SALES SLIPPED 34 SALES OF HAMBURGER BUNS WERE FLAT SAUCE MARKETERS ATTRIBUTE THE HOHUM RESULTS PARTLY TO RISING MEAT PRICES WHICH MAY HAVE DISCOURAGED SOME PENNYPINCHING GRILLERS THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS WHOSE TOP THREE BARBECUESAUCE BRANDS DOMINATE THE CATEGORY WITH A 44 SHARE SAYS A CHILLY SPRING IN MANY PARTS OF THE COUNTRY HAS CONTINUED TO CUT INTO SALES BUT MARKETERS SAY THE 3103 MILLION BARBECUE SAUCE CATEGORY HASN'T LOST ALL OF ITS ZEST AND THAT CONSUMERS OF TRADITIONAL TOMATOBASED TOPPINGS REMAIN VERY BRAND LOYAL SALES OF KRAFT TRADITIONAL BARBECUE SAUCE GREW 45 WHILE ITS SPICIER BULL'S EYE BRAND INCREASED 35 MEANWHILE SALES OF CLOROX CO'S KC MASTERPIECE LINE GREW A HEALTHY 74 THANKS PARTLY TO THE SUCCESS OF NEW FLAVORS LOSING GROUND IN THE CATEGORY CAMPBELL SOUP CO'S OPEN PIT SAUCE CAMPBELL ATTRIBUTES THE SLUMP TO AN ILLTIMED PRICE HIKE AND PREDICTS STRONGER SALES DURING THIS BARBECUE SEASON BARBECUE SAUCE IS A BIG AND WELLESTABLISHED CATEGORY SAYS MURRAY KESSLER BUSINESS DIRECTOR OF SAUCES FOR CAMPBELL BUT IT'S STILL GROWING AT A TIME WHEN MANY FOODS ARE FLAT OR DECLINING BUT SAUCE SALES CLEARLY AREN'T KEEPING PACE WITH AMERICANS' GROWING YEN TO GRILL NEARLY 80 OF ALL US HOUSEHOLDS NOW HAVE A BARBECUE GRILL ACCORDING TO THE BARBECUE INDUSTRY ASSOCIATION AND LAST YEAR NEARLY 32 OF ALL US HOUSEHOLDS GRILLED IN ANY TWOWEEK PERIOD SAYS HARRY BALZER VICE PRESIDENT OF NPD GROUP A CHICAGO COMPANY THAT TRACKS AMERICANS' EATING HABITS A DECADE AGO ONLY 22 OF HOUSEHOLDS GRILLED REGULARLY THE INCREASE IS ESPECIALLY DRAMATIC MR BALZER ADDS BECAUSE THE EATING HABITS OF A NATION TYPICALLY CHANGE AT A GLACIAL PACE THIS IS ONE OF THE MOST FUNDAMENTAL SHIFTS IN THE WAY FOOD IS PREPARED IN THE US OVER THE PAST 10 YEARS HE SAYS MR BALZER ATTRIBUTES THE RISE OF THE GRILL LARGELY TO CONSUMERS' QUEST FOR CONVENIENCE SLIGHTLY MORE THAN 50 OF GRILL OWNERS NOW HAVE GAS GRILLS WHICH REQUIRE LITTLE MAINTENANCE ABOUT 62 OWN CHARCOAL GRILLS BECAUSE SOME BARBECUE AFICIONADOS USE BOTH AND MANY GRILLERS USE PAPER PLATES AND DISPOSABLE UTENSILS CUTTING DOWN ON CLEANUP WHAT'S MORE THE GRILL IS A VERY CONVENIENT APPLIANCE FOR WOMEN WHO ARE MOST OFTEN RESPONSIBLE FOR DAILY MEAL PREPARATION MEN REMAIN THE PRIMARY GRILLERS ACCORDING TO A RECENT TELEPHONE SURVEY OF 202 ADULTS COMMISSIONED BY CHARCOALBRIQUET MAKER KINGSFORD PRODUCTS CO THE CLOROX UNIT FOUND THAT MEN DO 62 OF THE GRILLING COMPARED WITH 24 FOR WOMEN TEENAGERS AND COLLABORATIVE EFFORTS BY MEN AND WOMEN ACCOUNT FOR THE REST EVERY SINGLE ASPECT OF TRADITIONAL BARBECUING BESPEAKS MALENESS SAYS LAURA SHAPIRO AUTHOR OF PERFECTION SALAD A HISTORY OF WOMEN AND COOKING AT THE TURN OF THE CENTURY IT'S OUTDOORS IT IS ALL ABOUT CONTROLLING FIRE AND IT INVOLVES MEAT THE MANLY NATURE OF THE TASK SHE SAYS HELPS EXPLAIN WHY MEN WHO WOULDN'T MESS WITH A CONVENTIONAL RECIPE IN THE KITCHEN LIKE PLAYING WITH FIRE CONSUMERBEHAVIOR EXPERTS SAY THE RISE OF BARBECUING DOVETAILS WITH LARGER SOCIAL TRENDS THE HOME HAS ONCE AGAIN BECOME MORE OF A FOCAL POINT IN FAMILY LIFE FOR MANY AMERICANS AS WELL AS A REFUGE FOR SOME DISILLUSIONED BABY BOOMERS AS THE HOME BECOMES MORE OF A NEST THAN A BASE CAMP PEOPLE ARE MAKING MEALS MORE RECREATIONAL REASONS STEVE BARNETT AN ANTHROPOLOGIST AND PRINCIPAL WITH GLOBAL BUSINESS NETWORK WHICH TRACKS CONSUMER BEHAVIOR BARBECUING IS AN EASY WAY TO ENTERTAIN THE MOST IMPORTANT TREND FROM MARKETERS' PERSPECTIVE HOWEVER MAY BE THE TYPES OF FOOD PEOPLE NOW TOSS ON THE BARBECUE STEAK REMAINS AMERICANS' FAVORITE FOOD ON THE GRILL BUT PEOPLE ACTUALLY BARBECUE HAMBURGERS AND CHICKEN PARTS MORE OFTEN ACCORDING TO THE BARBECUE ASSOCIATION NEARLY HALF OF RESPONDENTS TO A SURVEY RECENTLY CONDUCTED BY WEBERSTEPHEN PRODUCTS CO THE PALATINE ILL MAKER OF WEBER GRILLS SAID THEY ARE GRILLING MORE CHICKEN THAT THEY DID TWO YEARS AGO MORE THAN HALF OF RESPONDENTS SAY THEY HAVE GRILLED FISH IN THE PAST YEAR WHILE 82 REPORT THEY GRILL VEGETABLES WE'RE NOT SEEING TRADITIONAL RED SAUCES AS MUCH BECAUSE PEOPLE ASSOCIATE THEM MORE WITH RED MEAT SAYS LINDA SMITHSON PRESIDENT OF FOODWATCH A MINNEAPOLIS COMPANY THAT TRACKS ADVERTISEMENTS RECIPES AND ARTICLES ABOUT FOOD IN SOME 30 MAGAZINES AND NEWSPAPERS AMONG THE TRENDS SHE HAS SPOTTED BOURBONFLAVORED BARBECUE SAUCES AND HERB RUBS THAT ARE APPLIED TO MEAT BEFORE GRILLING BACKYARD CHEFS ALSO ARE PREPARING MORE CONDIMENTS FOR GRILLED FOODS SUCH AS A PEPPER AND PAPAYA RELISH FOR SWORDFISH PEOPLE HAVE GOTTEN MORE UNINHIBITED ABOUT GRILLING SHE SAYS TO REIGNITE SALES MARKETERS ARE MAKING NEW SAUCES INCLUDING SOME THAT GO WELL WITH POULTRY KRAFT RECENTLY ROLLED OUT HONEYFLAVORED VERSIONS OF ALL THREE OF ITS BRANDS AND CLOROX HAS CREATED A HONEY DIJON VERSION OF ITS KC MASTERPIECE BRAND THE HOTTEST THING IN THE CATEGORY ARE THE NONRED SAUCES BECAUSE OF THE SHIFT TO CHICKEN TURKEY AND LIGHTER MEATS SAYS A CLOROX SPOKESWOMAN WHAT'S MORE THE EVOLUTION OF THE BARBECUE MARKET WILL PROBABLY CONTINUE AS THE TYPE OF FOOD BEING GRILLED CHANGES FROM SLABS OF STEAK TO FISH AND VEGETABLES WOMEN MAY TAKE CHARGE MORE OFTEN WEBERSTEPHEN REPORTS THAT WOMEN SAY THEY ALREADY ARE GRILLING MORE OFTEN MEN SURVEYED DIDN'T AGREE THERE HAS BEEN A CHANGE FROM BARBECUING TO GRILLING SAYS MS SHAPIRO AS THE FOOD WE GRILL BECOMES DAINTIER THINGS ON SKEWERS AND FISH WOMEN WILL END UP TAKING ON MORE OF THE WORK 9305270008 930527 INTERNATIONAL GERMANY MAKES POLITICAL ASYLUM MORE SELECTIVE LAWMAKERS TIGHTEN RULES AS PROTESTS BY LEFTISTS SWAMP QUIET CAPITAL BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN GERMANY WILL NO LONGER GUARANTEE FOREIGNERS THE RIGHT TO SEEK ASYLUM AFTER MONTHS OF DEBATE AND WITH THE STREETS OF THE CAPITAL BLOCKED BY LEFTIST RALLIES THE LOWER HOUSE OF PARLIAMENT OR BUNDESTAG VOTED 521132 TO ALTER THE GERMAN CONSTITUTION TO MAKE IT TOUGHER FOR REFUGEES TO GAIN ENTRY AND EASIER TO EXPEL THOSE WHO DON'T QUALIFY TO STAY THE VOTE CANCELS A UNIQUE FEATURE OF POSTWAR GERMANY THE CONSTITUTIONAL RIGHT OF ALL FOREIGNERS TO SEEK ASYLUM THIS DOESN'T MEAN THAT GERMANY SHOULD BE CLOSED OFF FROM THE REST OF WORLD SAID WOLFGANG SCHAEUBLE HEAD OF THE CONSERVATIVE FACTION IN THE BUNDESTAG DURING THE DEBATE MR SCHAEUBLE ECHOED A THEME OF CHANCELLOR HELMUT KOHL'S IN SAYING THAT TIGHTER RULES WILL CREATE STABILITY AND ENSURE SOCIAL PEACE FEW ISSUES ARE AS EXPLOSIVE IN GERMANY AS REFUGEES A RECORD 438000 POURED IN LAST YEAR COSTING GERMAN TAXPAYERS BILLIONS OF MARKS IN VARIOUS TYPES OF SOCIAL PAYMENTS AND RELATED COSTS THE VAST BULK OF GERMANS WANT TO STEM THE INFLUX PARTICULARLY OF THOSE WHO COME FOR ECONOMIC REASONS RATHER THAN TO ESCAPE POLITICAL PERSECUTION BUT THE ISSUE BECAME ENTANGLED WITH THE RECENT SURGE OF FARRIGHT VIOLENCE MOST FARRIGHT ATTACKS ARE AIMED AT REFUGEES AND OTHER FOREIGNERS PROMPTING SOME TO SEE THE LIBERAL ASYLUM RULES AS A LITMUS TEST FOR TOLERANCE AND DEMOCRACY IN GERMAN SOCIETY MAKING ANY CHANGES THIS GROUP SAYS PUTS THE NATION ON A SLIPPERY SLOPE TOWARD NAZISM MOST LAWMAKERS MADE IT TO THE BUNDESTAG ON TIME BUT MANY HAD TO BE FLOWN IN ON HELICOPTERS OR SHUTTLED ACROSS THE RHINE BY BOAT BECAUSE OF THE CROWD OF ABOUT 10000 PEOPLE DEMONSTRATING AGAINST ANY CHANGE IN THE ASYLUM POLICY THE LAWMAKERS HAD GOOD REASON TO TRY TO AVOID ANY CONFRONTATIONS LEFTIST MILITANTS SMASHED POLICE CARS AND HURLED PAINT BOMBS AT LEAST 13 POLICE WERE INJURED AND EIGHT PEOPLE WERE ARRESTED BEFORE DAWN ONE GROUP ERECTED A REPLICA OF THE BERLIN WALL THAT BLOCKED THE CITY'S MAIN TRAFFIC ARTERY A SIGN ON THE WALL SAID CHECKPOINT PARADISE A REFERENCE TO GERMANY'S EFFORTS TO SHIELD ITS WEALTH FROM AN ONSLAUGHT OF POORER NEWCOMERS THE SPECTACLE WAS ALMOST TOO MUCH FOR SOME RESIDENTS OF THIS NORMALLY NEARCOMATOSE CITY WOULD YOU JUST LOOK AT THEM SNARLED A WOMAN RIDING A TRAM AS IT INCHED PAST GROUPS OF PROTESTERS MANY WORE THE TRADEMARK UNIFORM OF GERMANY'S RADICAL LEFT TATTERED BLACK TSHIRTS AND DARK HOODS SOME SPORTED ORANGE OR PURPLESTREAKED HAIR SUCH DEMONSTRATIONS ARE SELDOM ORCHESTRATED BY ONE GROUP AT ONE POINT ABOUT 200 RADICAL LEFTISTS STARTED SURGING TOWARD POLICE IN AN EFFORT TO STORM THE BUNDESTAG THIS SET OFF AN UPROAR AMONG ORGANIZERS OF A PEACEFUL DEMONSTRATION ACROSS THE STREET SOME OUTSIDERS MANAGED TO GET INTO BONN'S GOVERNMENT QUARTER BY INSISTING ON HOLDING A PRAYER MEETING IN SUPPORT OF ASYLUM RIGHTS NEAR THE BUNDESTAG UNDER GERMAN LAW SUCH RELIGIOUS SERVICES CANNOT BE BLOCKED BY POLICE I THINK WE WILL INFLUENCE THE POLITICIANS IN THERE NOT IN THE SHORT TERM BUT IN THE LONG TERM SAID FRIEDHELM FRACKMANN A RETIRED PASTOR WHO HELPED ORGANIZE THE GATHERING BUT MANY OTHERS WERE LESS HOPEFUL I DON'T THINK THIS DEMONSTRATION WILL CHANGE A THING SAID ONE YOUNG MAN IN SKINHUGGING BLACKLEATHER PANTS BUT AT LEAST THE MEDIA CAN SHOW THAT THE DEBATE TOOK PLACE WITHIN THE CONFINES OF A POLICE STATE THE TROUBLE ON BONN'S STREETS MAY NOT BE OVER THE UPPER HOUSE OF PARLIAMENT OR BUNDESRAT MUST APPROVE THE ASYLUM CHANGE ON FRIDAY AND SOME PROTESTERS VOWED TO CARRY ON THEIR FIGHT IF APPROVED BY THE BUNDESRAT AS IS EXPECTED THE MEASURE WILL BECOME LAW JULY 1 9305270007 930527 BUSINESS BRIEF COASTAL STATES LIFE AND REGULATORS AGREE ON A REHABILITATION' ATLANTA COASTAL STATES LIFE INSURANCE CO AGREED TO A SETTLEMENT WITH GEORGIA'S COMMISSIONER OF INSURANCE IN WHICH THE COMPANY WILL ENTER VOLUNTARY REHABILITATION STATE OFFICIALS SAID THE ACCORD PLACES SHARP RESTRICTIONS ON THE FUTURE INVESTMENT TACTICS OF COASTAL WHICH WAS SEIZED IN DECEMBER 1992 BY GEORGIA REGULATORS THE REGULATORS WERE WORRIED ABOUT COASTAL'S SOLVENCY AND HEAVY INVESTMENTS IN MORTGAGEBACKED SECURITIES KNOWN AS COLLATERALIZED MORTGAGE OBLIGATIONS THE AGREEMENT REACHED FRIDAY CALLS FOR THE INSURER TO ADOPT A NEW INVESTMENT STRATEGY THAT LIMITS CMO INVESTMENTS TO 5 OF ASSETS TO BE MANAGED BY A NEW ADVISER SELECTED WITH THE INSURANCE DEPARTMENT'S APPROVAL ACCORDING TO GEORGIA OFFICIALS THIS RESOLVES ALL LITIGATION WITH THE STATE ON AN AGREEDUPON BASIS SAID W PITTS CARR AN ATTORNEY FOR COASTAL WE THINK THIS IS IN THE BEST INTERESTS OF POLICYHOLDERS RONALD GUERNSEY THE OWNER AND CHAIRMAN OF THE COMPANY WILL NO LONGER BE INVOLVED IN DAYTODAY MANAGEMENT THE COMPANY'S OPERATIONS WILL BE RUN BY ALLEN KAMINSKY A LONGTIME INSURANCE INDUSTRY EXECUTIVE WHO RECENTLY JOINED COASTAL THE AGREEMENT FURTHER REQUIRES COASTAL TO ALLOW AN AUDITOR SELECTED EARLIER BY THE DEPARTMENT TO COMPLETE ITS DEC 31 1992 AUDIT AND A STATUS AUDIT FOR JUNE 30 1993 THE PURPOSE OF THE AUDIT ACCORDING TO A REPRESENTATIVE FROM THE INSURANCE DEPARTMENT IS TO DETERMINE WHETHER THE COMPANY HAS A CAPITAL DEFICIENCY COASTAL STATES WILL REMAIN UNDER REHABILITATION FOR 18 MONTHS FOLLOWING THE JUNE AUDIT DURING THAT PERIOD THE COMPANY WILL BE ABLE TO WRITE NEW BUSINESS ONLY WITH THE APPROVAL OF THE INSURANCE DEPARTMENT DURING THE REHABILITATION PERIOD THE DEPARTMENT SAYS IT WILL MONITOR THE COMPANY DAILY AND MAY PLACE A REPRESENTATIVE IN THE COMPANY'S NEW ATLANTA HEADQUARTERS THE COMPANY MUST ALSO GET DEPARTMENT APPROVAL FOR ANY CHECKS OF MORE THAN 10000 THE AGREEMENT ALSO CURTAILS FEES PAID TO AN AFFILIATED MARKETING FIRM OWNED BY MR GUERNSEY AND TERMINATES COASTAL'S CONTRACT TO PAY SALES COMMISSIONS TO THE AFFILIATE 9305270006 930527 TWO LAWMAKERS SEEK REGULATORY OVERHAUL FOR MUNICIPAL BONDS WASHINGTON TWO KEY LAWMAKERS SUGGESTED THAT THE MUNICIPAL BOND MARKET MAY NEED A REGULATORY OVERHAUL CITING THE NEW JERSEY TURNPIKE REFUNDING SCANDAL AS BUT THE LATEST ABUSE TO HIT THE MARKET REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE AND REP EDWARD MARKEY D MASS HEAD OF THE PANEL'S TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE ASKED THREE REGULATORY AGENCIES TO REVIEW THE ADEQUACY OF MUNIMARKET REGULATION IN LIGHT OF ALLEGATIONS OF ILLEGAL PAYOFFS AND OTHER MARKET PROBLEMS IN LETTERS TO THE SECURITIES AND EXCHANGE COMMISSION THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AND THE MUNICIPAL SECURITIES RULEMAKING BOARD THE LEGISLATORS DISCLOSED THEY HAVE OPENED AN INQUIRY INTO POSSIBLE WRONGDOING IN CONNECTION WITH 29 BILLION OF NEW JERSEY TURNPIKE BONDS AND THE ADEQUACY OF CURRENT MARKET REGULATION IN THE NEW JERSEY CASE AUTHORITIES ARE LOOKING AT WHETHER FIRMS INVOLVED IN THE SALE OF THE BONDS VIOLATED SECURITIES LAW AND WHETHER THERE WERE ILLEGAL POLITICAL PAYMENTS TO OBTAIN THE BOND BUSINESS THE MSRB A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT ANNOUNCED LAST WEEK THAT IT'S CONSIDERING REQUIRING DEALERS TO DISCLOSE POLITICAL CONTRIBUTIONS BEFORE UNDERWRITING BONDS SEC COMMISSIONER RICHARD ROBERTS STRONGLY ENDORSED SUCH AN APPROACH AND SAID THE SEC COULD GENERATE SOME ACTIVITY OF ITS OWN IN THIS AREA IN THE NEAR FUTURE REPS DINGELL AND MARKEY ASKED THE AGENCIES TO COMMENT ON THE POSSIBLE REPEAL OF A 1975 LAW THAT PREVENTS THE SEC FROM IMPOSING ON THE MUNI MARKET THE DISCLOSURE LAWS GOVERNING CORPORATE SECURITIES 9305270004 930527 WHO'S NEWS KINARK CORP KINARK CORP TULSA OKLA RICHARD C BUTLER 81 YEARS OLD WAS ELECTED TO THE BOARD OF THIS CHEMICAL AND STEEL GALVANIZING CONCERN SUCCEEDING JOHN H HALEY 61 WHO RESIGNED MR BUTLER IS A PRIVATE INVESTOR AND PREVIOUSLY SERVED ON KINARK'S BOARD FROM 1974 TO 1979 9305270003 930527 LETTERS TO THE EDITOR A GOOD BUREAUCRAT DOES THE RIGHT THING YOUR MARCH 26 PAGE ONE ARTICLE ABOUT BAXTER INTERNATIONAL'S CIVIL AND CRIMINAL PLEA AGREEMENT FOR VIOLATIONS OF THE ANTIBOYCOTT LAW CASTS AN UNFORTUNATE AND UNFAIR SHADOW OVER BILL SKIDMORE THE DIRECTOR OF THE COMMERCE DEPARTMENT'S ANTIBOYCOTT OFFICE I HAD THE PRIVILEGE OF WORKING WITH BILL SKIDMORE IN THAT OFFICE FOR MORE THAN FOUR YEARS YOUR STORY PORTRAYS HIM AS AN OBSTRUCTIONIST BUREAUCRAT OUT TO FRUSTRATE ENFORCEMENT OF THE ANTIBOYCOTT LAW THIS IS AN UNFAIR CHARACTERIZATION OF A PROFESSIONAL CIVIL SERVANT WHO REPRESENTS THE HIGHEST IDEAL OF GOVERNMENT SERVICE MR SKIDMORE HAD MET RESISTANCE TO CRIMINAL REFERRALS IN THE PAST FROM COMMERCE'S OWN LAWYERS IN THE GENERAL COUNSEL'S OFFICE IN THE 1988 SARA LEE CIVIL ACTION THE JUSTICE DEPARTMENT ITSELF DECLINED TO CRIMINALLY PURSUE THE ANTIBOYCOTT VIOLATIONS MR SKIDMORE'S DESIRE TO HAVE THE ANTIBOYCOTT OFFICE PREPARE A THOROUGHLY DOCUMENTED CASE JUSTIFIES A GREAT DEAL OF CAUTION THE DIFFERENCE BETWEEN A PERSISTENT BUREAUCRAT AND AN IMPATIENT OR DISOBEDIENT ONE IN SUCH A SITUATION FREQUENTLY DEPENDS ON WHO IS TELLING THE STORY THE BAXTER CASE WAS SUCCESSFULLY CONCLUDED IN LARGE PART BECAUSE OF THE ORGANIZATION AND PROCEDURES IMPLEMENTED BY MR SKIDMORE IN THE ANTIBOYCOTT OFFICE THE CONCLUSION THAT THE ACTION OF A DISAFFECTED STAFF MEMBER WAS NOBLE WORK AND THE PURSUIT OF ORDERLY AND REGULAR PROCEDURES BY THE OFFICE DIRECTOR WAS OBSTRUCTIONIST DOES NOT LOGICALLY FOLLOW FROM THE SIZE OF THE SETTLEMENT AGAINST BAXTER YOUR ACCOUNT FAILED TO REFLECT THIS FACT 9305270002 930527 MARRIOTT BUSINESSES SLATED TO BE SPUN OFF RECIEVE S&P RATINGS NEW YORK STANDARD & POOR'S CORP SAID IT PLANS TO ASSIGN AN INVESTMENTGRADE DEBT RATING TO MARRIOTT INTERNATIONAL INC THE HOTELMANAGEMENT BUSINESS THAT MARRIOTT CORP PLANS TO SPIN OFF TO SHAREHOLDERS LATER THIS YEAR AT THE SAME TIME THOUGH S&P LOWERED TO JUNKBOND STATUS ITS RATING ON MARRIOTT'S SENIOR UNSECURED DEBT REFLECTING THE EXPECTED POOR CREDIT QUALITY OF HOST MARRIOTT CORP THE DEBTLADEN REAL ESTATE COMPANY THAT MARRIOTT ALSO WILL SPIN OFF TO SHAREHOLDERS THE RATINGS CHANGES SAID S&P ANALYST ROBERT C NELSON SIGNIFY THAT MARRIOTT IS EFFECTIVELY ACHIEVING WHAT THEY SET OUT TO DO SEPARATE A MORE CREDITWORTHY MARRIOTT INTERNATIONAL FROM A DEBTLADEN COMPANY MARRIOTT'S RATINGS HAD BEEN UNDER REVIEW SINCE OCTOBER WHEN THE COMPANY FIRST ANNOUNCED ITS CONTROVERSIAL PLAN TO SPLIT ITSELF INTO TWO COMPANIES S&P SAID IT PLANS TO ASSIGN A SINGLEAMINUS RATING TO MARRIOTT INTERNATIONAL REFLECTING ITS LEADING POSITION AS A HOTEL MANAGEMENT COMPANY ITS WELLDIVERSIFIED PORTFOLIO OF PROPERTIES AND ITS STABLE GENERATION OF CASH FLOW AS A MANAGER RATHER THAN OWNER OF HOTELS THE RATING AGENCY SIMULTANEOUSLY LOWERED ITS RATING ON MARRIOTT CORP'S SENIOR UNSECURED NOTES TO SINGLEB FROM TRIPLEB REFLECTING THE EXPECTED POOR CREDIT QUALITY OF ITS SUCCESSOR HOST MARRIOTT S&P SAID IT EXPECTS THAT HOST MARRIOTT'S CASH GENERATION WON'T MEANINGFULLY IMPROVE IN THE NEXT FEW YEARS BECAUSE OF A PERSISTENT GLUT OF HOTELS AND A WEAK BUSINESS TRAVEL CLIMATE THE UNIT'S SENIOR SECURED DEBT IS EXPECTED TO HAVE A RATING OF DOUBLEBMINUS DEBT IS CONSIDERED INVESTMENTGRADE WITH A RATING OF TRIPLEB OR BETTER 9305270001 930527 WHAT'S NEWS BUSINESS AND FINANCE SEAGRAM ACQUIRED 57 OF TIME WARNER ON THE OPEN MARKET FOR ABOUT 700 MILLION AND PLANS TO RAISE ITS STAKE TO 15 OF THE ENTERTAINMENT GIANT'S SHARES OUTSTANDING THOUGH THE MOVE SPARKED SPECULATION ABOUT SEAGRAM'S LONGTERM INTENTIONS THE CANADIAN SPIRITS AND JUICE MAKER'S CHAIRMAN SAID THAT SEAGRAM SEES ITSELF AS A FRIENDLY INVESTOR CLINTON AGREED TO MODIFY THE ENERGY TAX TO EFFECTIVELY EXEMPT EXPORTERS OF CHEMICALS AND OTHER ENERGYINTENSIVE PRODUCTS BY GIVING REBATES THE CONCESSIONS APPEARED TO GARNER MORE SUPPORT FOR THE DEFICITREDUCTION BILL THOUGH THE OUTCOME OF TODAY'S HOUSE VOTE REMAINED UNCERTAIN ORDERS FOR DURABLE GOODS WERE FLAT LAST MONTH IN ANOTHER SIGN THAT THE MANUFACTURING INDUSTRY IS IN A RUT THE WEAK PERFORMANCE IN APRIL COMES AFTER A DECLINE OF 37 IN MARCH STOCKS SOARED PARTLY BOOSTED BY SURGING BOND PRICES THE DOW JONES INDUSTRIAL AVERAGE JUMPED 2353 POINTS TO A RECORD 354016 THE TREASURY BENCHMARK 30YEAR ISSUE'S PRICE CLIMBED MORE THAN 1 1/8 POINTS SENDING ITS YIELD DOWN TO 692 AST RESEARCH AGREED TO ACQUIRE TANDY'S PERSONAL COMPUTER BUSINESS FOR ABOUT 175 MILLION A MOVE THAT COULD MAKE AST THE FOURTHLARGEST PC MANUFACTURER IN THE US TANDY'S STOCK JUMPED 69 WHILE AST RESEARCH'S SHARES CLIMBED 66 BLUE CROSS AND BLUE SHIELD GROUPS IN ILLINOIS IOWA AND SOUTH DAKOTA PLAN TO MERGE WHICH COULD FORESHADOW MORE SUCH COMBINATIONS UNDER CLINTON'S PROPOSED HEALTH PLAN GENERAL MOTORS FAILED TO GET A GERMAN COURT TO BLOCK VOLKSWAGEN'S HIRING OF SEVEN FORMER GM MANAGERS THEY FOLLOWED J IGNACIO LOPEZ DE ARRIORTUA WHEN HE JUMPED TO VW INLAND STEEL APPEARS CLOSE TO REACHING A NEW LABOR AGREEMENT WITH THE UNITED STEELWORKERS UNION THAT WILL PROBABLY SET AN INDUSTRY PATTERN PET SAID IT PLANS TO SHED SEVERAL MARGINAL FOOD OPERATIONS TO FOCUS ON CORE BUSINESSES AND IMPROVE ITS FINANCIAL FOOTING IN MOVES THAT WILL RESULT IN A BIG LOSS FOR ITS FISCAL YEAR THE NEW FRENCH GOVERNMENT ROLLED OUT ITS AMBITIOUS PRIVATIZATION PROGRAM THE PLAN WHICH COULD RAISE AT LEAST 5472 BILLION INCLUDES 21 FIRMS DAIMLERBENZ'S CHAIRMAN TOLD SHAREHOLDERS THAT THE INDUSTRIAL COMPANY IS WILLING TO DIP INTO CASH RESERVES TO KEEP ITS DIVIDEND STEADY STORAGE TECHNOLOGY'S SHARES JUMPED 11 AFTER ITS CHAIRMAN PREDICTED IMPROVED FINANCIAL RESULTS AND SAID HE HOPED SHIPMENTS OF THE LONGDELAYED ICEBERG DATASTORAGE SYSTEM COULD BEGIN BY THE FOURTH QUARTER 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 LATE PAYMENTS ON RESIDENTIAL MORTGAGES ROSE NEGLIGIBLY IN THE FIRST QUARTER AFTER A SIXMONTH DECLINE BUT THE DELINQUENCY LEVEL REMAINED SO LOW THAT INDUSTRY ANALYSTS STILL VIEW IT AS POSITIVE FOR THE HOUSING MARKET A SENATE LABOR PANEL APPROVED A BILL ESTABLISHING A BOARD TO HELP SET UP WORKPLACE SKILL STANDARDS THE MOVE IS THE FIRST MAJOR STEP TOWARD A NATIONAL SYSTEM TO CERTIFY WORKER ABILITIES TOKYO STOCKS SCORED SOLID GAINS WEDNESDAY DESPITE THE YEN'S RISE TO RECORD HIGHS AGAINST THE DOLLAR THE NIKKEI INDEX ADVANCED 26423 OR 13 TO 2089599 LONDON STOCKS ENDED NARROWLY HIGHER BOLSTERED BY LATE POSITIONSQUARING IN THE FUTURES MARKET BONDS LEHMAN BROTHERS TREASURY INDEX 508818 UP 4290 COMMODITIES OIL 1989 A BARREL OFF ONE CENT DOW JONES FUTURES INDEX 12172 OFF 066 SPOT INDEX 12146 UP 032 DOLLAR 10850 YEN OFF 085 16278 MARKS OFF 00037 9305270099 930422 DELICATE DECISIONS CLINTON'S HEALTH PLAN MUST FACE HUGE COSTS OF A PERSON'S LAST DAYS ADVANCEMENT OF TECHNOLOGY AND ITS LIBERAL USE ADD BILLIONS TO ANNUAL BILL TALK OF RATIONING BENEFITS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AT THE UCLA MEDICAL CENTER A FEW WEEKS AGO AN 80YEAROLD MAN UNDERWENT QUADRUPLE CORONARY BYPASS SURGERY HIS CHANCES OF RECOVERY WERE SLENDER HIS DOCTORS FELT BUT THEY ALSO KNEW THAT WITHOUT THE OPERATION HE WOULD DIE ALMOST IMMEDIATELY THE MAN DIDN'T SURVIVE TO BE DISCHARGED FROM THE HOSPITAL THE BILL FOR HIS TWOWEEK HOSPITALIZATION ALONE WAS MORE THAN 50000 ACCORDING TO A UCLA OFFICIAL SEPARATE PHYSICIANS' FEES NO DOUBT ADDED THOUSANDS OF DOLLARS TO THE COST IF THIS 80YEAROLD PATIENT HAD LIVED IN ANY COUNTRY OTHER THAN THE US HE PROBABLY WOULDN'T HAVE HAD THE OPERATION AND HE PROBABLY WOULD HAVE DIED AT HOME OF ALL THE ISSUES CONFRONTING PRESIDENT CLINTON AS HE BEGINS TO MAKE THE TOUGH DECISIONS ABOUT WHAT TO INCLUDE IN HIS HEALTHCARE PLAN TO BE INTRODUCED NEXT MONTH NONE IS MORE SENSITIVE THAN THE USE OF COSTLY MEDICAL TECHNOLOGY ESPECIALLY IN THE FINAL DAYS OF LIFE ONE GIANT ELEMENT IN SOARING HEALTH COSTS IN THE US IS THE ADVANCEMENT OF MEDICAL TECHNOLOGY AND THE HEALTH ESTABLISHMENT'S SPARENOEXPENSE APPROACH TO USING IT THE AMERICAN HEALTHCARE BILL WAS AN ESTIMATED 820 BILLION LAST YEAR WITH ALMOST HALF OF THE ANNUAL INCREASE OR MORE THAN 30 BILLION IN 1992 ATTRIBUTABLE TO NEW MEDICAL TECHNOLOGY AND CLOSE TO 30 OF MEDICARE SPENDING GOES TO TREAT PEOPLE IN THE FINAL YEAR OF LIFE WITH THE BULK OF THE EXPENDITURES COMING IN THE LAST MONTH ACCORDING TO THE HEALTH CARE FINANCING ADMINISTRATION WHICH RUNS THE FEDERAL HEALTH PROGRAM FOR THE ELDERLY AND DISABLED A NEW STUDY FROM THE AGENCY SHOWS THAT THE PERCENTAGE OF HEALTH EXPENDITURES GOING TO PEOPLE IN THEIR LAST YEAR OF LIFE HAS HELD STEADY FOR MORE THAN A DECADE IT IS A LIFEANDDEATH ISSUE THAT RAISES EXCRUCIATING DILEMMAS THE DAY BEFORE HER 82YEAROLD FATHER DIED THIS MONTH AFTER 18 DAYS IN A LITTLE ROCK ARK HOSPITAL HILLARY RODHAM CLINTON REFLECTED ON HER PERSONAL ORDEAL WHEN DOES LIFE START SHE ASKED WITHOUT TEXT OR NOTES IN A SPEECH AT THE UNIVERSITY OF TEXAS IN AUSTIN WHEN DOES LIFE END WHO MAKES THOSE DECISIONS HOW DO WE DARE TO IMPINGE UPON THESE AREAS OF SUCH DELICATE DIFFICULT QUESTIONS AND YET EVERY DAY IN HOSPITALS AND HOMES AND HOSPICES ALL OVER THIS COUNTRY PEOPLE ARE STRUGGLING WITH THOSE VERY PROFOUND ISSUES A NEW POLL BY THE WALL STREET JOURNAL AND NBC NEWS SHOWS THE PUBLIC IS SHARPLY DIVIDED OVER THE ECONOMICS OF LIFEPROLONGING MEDICAL PROCEDURES FORTYONE PERCENT OF RESPONDENTS SAID THE GOVERNMENT SHOULD PAY FOR ALL PROCEDURES THAT MIGHT PROLONG THE LIFE OF AN ELDERLY TERMINALLY ILL PATIENT BUT AN IDENTICAL 41 SAID THAT AFTER SOME POINT THE GOVERNMENT SHOULD NOT PAY FOR ALL SUCH PROCEDURES HOWEVER WHEN THE CHOICE IS A PERSONAL ONE RATHER THAN ONE SET OUT IN A GOVERNMENT HEALTH PROGRAM THE PUBLIC OVERWHELMINGLY OPTS FOR SOME LIMITS ON MEDICAL TECHNOLOGY ASKED ABOUT HOW THEY WOULD DEAL WITH AN ELDERLY LOVED ONE WHO WAS TERMINALLY ILL 80 OF THOSE SURVEYED SAID THERE WOULD BE SOME POINT WHEN THEY WOULD FEEL LIFEPROLONGING PROCEDURES SHOULDN'T BE CONTINUED THE ONLY WAY HEALTH COSTS CAN BE TRULY CURBED IS THROUGH SOME WAY OF CONTROLLING FEES AND SOME WAY OF CONTROLLING TECHNOLOGY SAYS DANIEL CALLAHAN DIRECTOR OF THE HASTINGS CENTER IN BRIAR CLIFF MANOR NY WHICH STUDIES ETHICS ISSUES IN THE LIFE SCIENCES DR CALLAHAN GENERATED A GALE OF CONTROVERSY IN 1987 WHEN HE WROTE A BOOK SUGGESTING THAT MEDICAL TECHNOLOGY BE RATIONED ACCORDING TO AGE LIKEWISE NINE YEARS AGO THENGOV DICK LAMM OF COLORADO WAS SAVAGED AFTER HE SAID THAT THE TERMINALLY ILL WHO WERE KEPT ALIVE ONLY BY COSTLY TECHNOLOGY ULTIMATELY HAD A DUTY TO DIE BUT EXPLICIT CONTROLS ON TECHNOLOGY WON'T BE INCLUDED IN THE CLINTON PROPOSAL FOR HEALTHCARE COVERAGE FOR ALL AMERICANS ASKED ABOUT THE POSSIBILITY OFFICIALS DISMISS IT ALMOST INSTANTLY SAYS FRED GRAEFE A WASHINGTON LOBBYIST IT'S SOMETHING THEY DON'T WANT TO TALK ABOUT YET WHEN HE RAISED THE QUESTION IN MEETINGS WITH ADMINISTRATION HEALTH AIDES REGARDING ORGAN TRANSPLANTS HE SAYS THEY LOOKED LIKE THEY WANTED ME TO BECOME AN ORGAN DONOR THE CLINTON ADMINISTRATION SEEMED TO FACE THE TECHNOLOGY ISSUE HEADON RECENTLY BY ALLOWING OREGON TO EXPAND ITS MEDICAID PROGRAM TO ALL OF THE STATE'S POOR PEOPLE BY REFUSING TO COVER SOME HIGHCOST OR LOWEFFECTIVE PROCEDURES IN ORDER TO GUARANTEE EVERY POOR PERSON IN THE STATE COVERAGE FOR MEDICAL THERAPY FOR HIV AND AIDS FOR EXAMPLE OREGON REFUSED TO PAY FOR LIVER TRANSPLANTS FOR PATIENTS WITH LIVER CANCER BUT THE CLINTON HEALTH PLAN WON'T BE A NATIONALSCALE OREGON PEOPLE INVOLVED IN THE TASK FORCE HEADED BY MRS CLINTON SAY THERE IS NO WAY IT WILL PROPOSE EXPLICIT RATIONING OF CARE PEOPLE WHO HAVE BROACHED THE SUBJECT WITH IRA MAGAZINER THE SENIOR WHITE HOUSE OFFICIAL RUNNING DAILY OPERATIONS OF THE HEALTH INITIATIVE SAY HE CONTENDS THAT THE US HEALTH SYSTEM HAS SO MUCH BLOAT WASTE AND INEFFICIENCY IN IT THAT RATIONING IS UNNECESSARY GETTING A COMPREHENSIVE PLAN THROUGH CONGRESS IS GOING TO BE ENORMOUSLY DIFFICULT AND WILL REQUIRE LAWMAKERS TO ENDORSE SUBSTANTIAL TAX INCREASES NEW REGULATION AND PERHAPS EVEN SUCH CONTROVERSIAL MEASURES AS MEDICAL PRICE CONTROLS THE LAST THING THE PRESIDENT'S ADVISERS WANT TO DO IS ADD TO THIS MINEFIELD BY SUGGESTING THEY WON'T PAY FOR PROCEDURES THAT COULD PROLONG LIVES NOBODY NO POLITICIAN WANTS TO TALK ABOUT RATIONING SAYS WILLIAM SCHWARTZ A PROFESSOR OF MEDICINE AT THE UNIVERSITY OF SOUTHERN CALIFORNIA AND A MEDICAL ECONOMIST BUT HE PREDICTS WITHIN A VERY SHORT PERIOD OF TIME THERE'S GOING TO BE A PROBLEM OF HAVING TO DENY BENEFITS BECAUSE THERE SIMPLY ISN'T ENOUGH WASTE AND INEFFICIENCY TO OFFSET SPIRALING COSTS IT IS A PROBLEM DEALT WITH IN DIFFERENT WAYS IN DIFFERENT COUNTRIES JOHN HOFF A WASHINGTON LAWYER REMEMBERS A NATIVE ENGLISHMAN WHO LIVED NEXT DOOR FOR MANY YEARS WHEN THE MAN WAS OVER 65 HE SUFFERED KIDNEY FAILURE LIKE TENS OF THOUSANDS OF AMERICANS HE STAYED ALIVE THROUGH RENAL DIALYSIS THEN HE DECIDED TO RETURN TO BRITAIN FOR HIS REMAINING YEARS BUT MR HOFF SAYS HE WAS UNABLE TO GET COSTLY DIALYSIS THERE BECAUSE OF HIS AGE AND HE DIED BRITAIN WHICH HAS A SYSTEM OF GOVERNMENTFINANCED NATIONAL HEALTH INSURANCE DOESN'T EXPLICITLY SAY IT WON'T COVER RENAL DIALYSIS FOR PEOPLE OVER A CERTAIN AGE BUT SOMEHOW THAT IS WHAT HAPPENS SAYS JAMES STACEY AUTHOR OF INSIDE THE NEW TEMPLE THE HIGH COST OF MISTAKING MEDICINE FOR RELIGION IT IS DISCUSSED WITH PATIENTS THAT SOMEHOW IT WOULDN'T DO YOU ANY GOOD IN THE US ON THE OTHER HAND THE FASTESTGROWING SEGMENT OF RENAL DIALYSIS PATIENTS ARE OVER 75 YEARS OLD THE US SPENDS 2867 PER CAPITA A YEAR ON HEALTH CARE BRITAIN SPENDS 1035 ACCORDING TO THE LATEST STATISTICS FROM THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT MOST OTHER COUNTRIES DON'T HAVE A PROBLEM WITH SOME SORT OF MEDICAL RATIONING WHETHER BECAUSE THEY ARE SOMEHOW MORE ACCEPTING OF DEATH OR MORE ATTUNED TO OPERATING UNDER HEALTH SYSTEMS WITH LIMITED RESOURCES STEVEN SCHROEDER AN INTERNIST WHO HEADS THE ROBERT WOOD JOHNSON FOUNDATION A PHILANTHROPY TELLS OF VISITING TEACHING HOSPITALS THROUGHOUT EUROPE A FEW YEARS AGO AND NOTICING IMPORTANT DIFFERENCES INTENSIVECARE UNITS WERE FAR SMALLER THAN ICUS IN THE US ACCOUNTING FOR 1 TO 5 OF THE BEDS INSTEAD OF 15 TO 20 IN THE US MOREOVER THE PATIENTS WERE DIFFERENT THEY WERE HEALTHIER AND THEY WERE YOUNGER THE COMMON PATIENT IN AN ICU IN A MAJOR US HOSPITAL IS AN 85YEAROLD WHOSE HEART IS FAILING WHOSE LUNGS ARE FAILING WHO IS IN NEED OF ARTIFICIAL RESPIRATION HE ASKED OTHER DOCTORS ABOUT IT THEY WOULD SAY I TRAINED IN THE US YOUR TEACHING HOSPITALS ARE EXCELLENT YOUR TECHNOLOGY IS SUPERB BUT YOU DON'T KNOW WHEN TO STOP OF COURSE SOME TECHNOLOGY SAVES MONEY WE SHOULDN'T BE TOO CONCERNED ABOUT TECHNOLOGIES THAT ARE LIKELY TO REDUCE THE COST OF CARE SAYS GERALD KOMINSKI AN ASSISTANT PROFESSOR AT THE UCLA SCHOOL OF PUBLIC HEALTH AND A RAND CORP CONSULTANT HE MENTIONS GALL BLADDER LAPAROSCOPIC SURGERY WHICH CAN BE DONE ON AN OUTPATIENT BASISSAVING HOSPITALIZATION COSTSAND ALLOWS QUICKER RECOVERY AND THOUGH ADMINISTRATION OFFICIALS LAMBASTE THE HIGH COST OF PRESCRIPTION DRUGS SOME MEDICINES CAN BE A LESSEXPENSIVE ALTERNATIVE TO SURGERY PART OF THE UNNECESSARY CARE I SEE IS A LOT OF PEOPLE WITH HEART DISEASE COULD BE MANAGED EITHER MEDICALLY OR SURGICALLY AND THEY GET MANAGED SURGICALLY SAYS DR SCHROEDER THE DIFFERENCE IN PRICE HE SAYS IS TENS OF THOUSANDS OF DOLLARS A CORONARY BYPASS OPERATION MIGHT RUN ABOUT 40000 WHILE HEART DRUGS MIGHT BE SEVERAL THOUSAND DOLLARS HE SAYS ULTIMATELY MANY PEOPLE THINK THAT THE ENORMOUS DEMAND FOR HEROIC LIFESAVING MEDICAL TECHNOLOGY CAN'T BE CURBED WITHOUT CHANGING THE MINDSET OF THE AMERICAN PEOPLE TOWARD A READIER ACCEPTANCE OF DEATH WHAT WE NEED ARE MORE STORIES BY HEALTHCARE REPORTERS ABOUT COURAGEOUS AND HUMANE WAYS TO FACE DEATH TO COUNTERBALANCE THEIR MANY STORIES OF BREAKTHROUGHS' AIMED AT PROLONGING LIFE WRITES MR STACEY BUT WHEN IT COMES TO A FAMILY MEMBER DOCTORS SAY MANY AMERICANS WANT TO SPARE NO EFFORT TO SAVE A LOVED ONE AND JOHN ROTHER DIRECTOR OF LEGISLATION FOR THE AMERICAN ASSOCIATION OF RETIRED PERSONS CAUTIONS WHEN YOU THROW IN A PERSON'S AGE I THINK IT SETS OFF ALL KINDS OF ALARM BELLS SOMETIMES THERE'S AN ASSUMPTION MADE THAT BECAUSE A PERSON MAY BE IN HIS 80S THERE'S NO HOPE OF RECOVERY WHICH IS NOT ALWAYS THE CASE PRESIDENT CLINTON IS EXPECTED TO SEEK OTHER WAYS TO CURB WHAT IS THOUGHT OF AS EXCESSIVE USE OF TECHNOLOGY HE WANTS TO CHANGE MALPRACTICE LAWS TO KEEP TESTS AND PROCEDURES FROM BEING DONE JUST OUT OF FEAR OF LAWSUITS THE TASK FORCE ALSO HAS DISCUSSED SETTING UP CENTERS OF EXCELLENCE SO ONLY ONE HOSPITAL IN A REGION FOR EXAMPLE WOULD PERFORM LIVER TRANSPLANTS ONLY ONE WOULD HAVE A CORONARY CARE CENTER AND ONLY ONE HOSPITAL OR DOCTOR'S OFFICE WOULD HAVE A MAGNETIC RESONANCE IMAGING MACHINE THIS WOULD CUT DOWN ON THE TECHNOLOGICAL ARMS RACE THAT LEADS HOSPITALS TO MATCH THEIR NEIGHBORS MACHINE BY MACHINE THE PRESIDENT IS ALSO INTERESTED IN SETTING UP A NATIONAL HEALTH BOARD WHICH COULD DECIDE WHETHER NEW INSTRUMENTS AND PROCEDURES ARE COSTEFFECTIVE ENOUGH TO BE COVERED IN THE BASIC BENEFITS PACKAGE THAT ALL AMERICANS WOULD BE ENTITLED TO UNDER THE CLINTON PLAN BUT MORE THAN LIKELY THE TECHNOLOGY ISSUE WILL BE ADDRESSED IN A BACKHANDED WAY THROUGH THE SPENDING LIMITS THE GOVERNMENT PLACES ON HEALTH CARE MANY PEOPLE PREDICT THE RESULT WILL BE A SYSTEM OF AD HOC RATIONING WHERE INSURANCE COMPANIES HMOS AND NETWORKS OF DOCTORS AND HOSPITALS WILL DECIDE WHETHER TO PAY FOR ARTIFICIAL HEARTS 10000AYEAR DRUGS OR 100000 BONEMARROW TRANSPLANTS WITH LOW ODDS OF SUCCESS THE WHOLE IDEA OF MANAGED COMPETITION IS TO DELEGATE THOSE PAINFUL DECISIONS INTO THE DARK CORNERS OF THE HMO SAYS UWE REINHART A HEALTH ECONOMIST AT PRINCETON UNIVERSITY YOU DECENTRALIZE THE AGONY AND YOU PRIVATIZE IT BY SAYING LOOK WHATEVER THE HMO DOES ' THIS IS A SMART WAY OF DELEGATING PAINFUL DECISIONS FROM THE GOVERNMENT TO THE PRIVATE SECTOR INSURANCE FIRMS AREN'T THRILLED WITH THE IDEA IT WOULD BE BETTER TO HAVE A FEDERAL TECHNOLOGY ASSESSMENT PROGRAM THAT IS GEARED TO EVALUATING EFFICACY AND COSTEFFECTIVENESS IT SHOULD NOT BE LEFT UP TO A THOUSAND DIFFERENT HEALTH PLANS AROUND THE COUNTRY SAYS DANIEL DANZIG A SPOKESMAN FOR KAISER PERMANENTE THE LARGE HMO WITH A NATIONAL TECHNOLOGY REVIEW PROCESS HE SAYS THE PLAYING FIELD IS LEVEL ACROSS THE BOARD EVERYONE IS PAYING FOR THE SAME TECHNOLOGY AND FROM AN INSURANCE POINT OF VIEW PAYING FOR THE SAME RISK COST WILL BE SPREAD MORE EQUITABLY IT IS CLEAR THAT THE EXPENSE OF TECHNOLOGY IS ONLY GOING TO GROW AS SCIENCE AND MEDICINE ADVANCE EVERYTHING THAT'S HAPPENED UP UNTIL NOW IN MEDICINE IS A PRELUDE SAYS DR SCHWARTZ THE USC PROFESSOR WHAT'S REALLY AHEAD IS STUNNING A TOTAL CHANGE IN WAYS WE THINK ABOUT DISEASE THE ROLE OF GENES IN DETERMINING NOT ONLY THE DEVELOPMENT OF A DISEASE BUT REACTION TO INJURIES AND A HOST OF NEW WAYS OF TREATING DISEASE IT'S GOING TO BE WONDERFUL BUT IT'S GOING TO BE VERY EXPENSIVE THE ADMINISTRATION HAS PUT TOGETHER AN ETHICS PANEL COMPOSED OF DOCTORS LAWYERS ETHICISTS AND PHILOSOPHERS TO EXAMINE THE RANGE OF ETHICAL AND MORAL IMPLICATIONS OF THE PRESIDENT'S HEALTH PROPOSALS THE WHITE HOUSE IS SO SENSITIVE ABOUT THE PANEL'S WORK THAT IT REFUSES TO EVEN DISCLOSE THE SUBJECTS OF THE DELIBERATIONS ONE IDEA THE PANEL HAS DISCUSSED IS ENCOURAGING GREATER PATIENT INVOLVEMENT IN GOVERNANCE OF HEALTH PLANS AND IN DECIDING WHAT PROCEDURES AND SERVICES TO COVER SAY SOME PARTICIPANTS THE GROUP FEELS STRONGLY THAT A NATIONAL TECHNOLOGY ASSESSMENT SYSTEM SHOULD BE SET UP TO REVIEW THE EFFECTIVENESS OF NEW MEDICAL TECHNOLOGY WHETHER IT IMPROVES UPON THE INSTRUMENTS AND PROCEDURES NOW IN USE AND IN WHICH CASES IT MAY BE SUITABLE THE NATIONAL HEALTH BOARD WOULD PROBABLY BE THE BODY TO DO THE TECHNOLOGY REVIEW ALTHOUGH IT HASN'T BEEN DECIDED WHETHER THE BOARD WOULD MAKE RECOMMENDATIONS ABOUT WHETHER NEW TECHNOLOGIES SHOULD BE COVERED BY THE HEALTH PLAN BUT IF THE QUESTION OF RATIONING MEDICAL TECHNOLOGY SEEMS PAINFUL NOW JUST WAIT THE REAL DIFFICULTY IS GOING TO BE WHEN WE FIND THINGS THAT REALLY WORK THEN IT'S GOING TO BE A REALLY HARD CHOICE PREDICTS DR CALLAHAN OF THE HASTINGS CENTER I SUSPECT THAT IN 20 YEARS WE'LL HAVE AN ARTIFICIAL HEART THERE ARE SURE ENOUGH GOING TO BE SOME 90YEAROLDS WHO WILL SAY IT WILL GIVE ME ANOTHER FIVE YEARS OF LIFE I WANT IT UNDER MEDICARE ' THEN WE'LL REALLY BE STUCK WITH A GENUINE DILEMMA STUDIES SHOW THAT THE LARGEST AMOUNTS OF HEALTHCARE DOLLARS ARE SPENT DURING THE LAST 12 MONTHS OF A PERSON'S LIFE DO YOU THINK THAT A GOVERNMENT NATIONAL HEALTHCARE PROGRAM SHOULD PAY FOR ALL PROCEDURES THAT MIGHT PROLONG THE LIFE OF AN ELDERLY TERMINALLY ILL PATIENT OR DO YOU THINK THERE SHOULD BE SOME POINT AT WHICH THE GOVERNMENT SHOULD NO LONGER PAY FOR SUCH PROCEDURES SEE RELATED LETTER LETTERS TO THE EDITOR HEALTH CARE COSTS NO ONE IS RESPONSIBLE' WSJ MAY 27 1993 9305140074 YY93 MM05 9305270109 930326 CAUGHT IN THE ACT HOW BAXTER GOT OFF THE ARAB BLACKLIST AND HOW IT GOT NAILED PERSISTENCE OF EXEMPLOYEE AND FEDERAL INVESTIGATOR LED TO FELONY GUILTY PLEA DISPOSING OF BUSINESS IN ISRAEL BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO BAXTER INTERNATIONAL INC THE WORLD'S LARGEST HOSPITALSUPPLY COMPANY YESTERDAY BECAME THE FIRST COMPANY TO PLEAD GUILTY TO A FELONY CHARGE OF VIOLATING THE US LAW AGAINST COOPERATING WITH THE ARAB BOYCOTT OF ISRAEL IN A CONCERTED MULTIYEAR EFFORT TO GET OFF AN ARAB BLACKLIST OF COMPANIES DOING BUSINESS WITH ISRAEL BAXTER PAID MILLIONS OF DOLLARS TO MIDDLEMEN AND OTHERS IN EUROPE AND THE MIDEAST ACCORDING TO PEOPLE FAMILIAR WITH THE CASE IT MADE PAYMENTS TO A CONSTRUCTION COMPANY AND TO BUSINESSPEOPLE IN PARIS AND IN SYRIA IN FACT GETTING THE COMPANY OFF THE BLACKLIST BECAME A KEY PART OF THE JOB OF ITS SENIOR VICE PRESIDENT AND GENERAL COUNSEL G MARSHALL ABBEY WHO FLEW FIVE TIMES TO DAMASCUS MEETING WITH SYRIAN ARMY OFFICIALS INCLUDING THE COUNTRY'S DEFENSE MINISTER GEN MUSTAFA TLAS ACCORDING TO GOVERNMENT DOCUMENTS FILED IN US DISTRICT COURT IN CHICAGO LITTLE OF THE EVIDENCE AGAINST BAXTER WOULD EVER HAVE COME TO LIGHT IF NOT FOR THE EFFORTS OF AN ANGRY FORMER EMPLOYEE AND A COMMERCE DEPARTMENT INVESTIGATOR WHOSE OWN BOSS DISCOURAGED CRIMINAL PURSUIT OF THE CASE BUT THE INVESTIGATOR PERSISTED AND EVENTUALLY THE GOVERNMENT GATHERED EVIDENCE THAT A BAXTER MIDDLE EAST UNIT AND MR ABBEY SUBMITTED TO ARAB BOYCOTT AUTHORITIES MORE THAN 330 ITEMS OF INFORMATION THAT VIOLATED THE FEDERAL ANTIBOYCOTT LAW IN ONE NEVERCONSUMMATED EFFORT TO GET ARAB LEAGUE SUPPORT MR ABBEY TOLD AN UNIDENTIFIED SYRIAN ATTORNEY THAT BAXTER WAS WILLING TO CONFER A BENEFIT ON SELECTED ARAB STATES OF 225 MILLION TO GET OFF THE BLACKLIST COURT DOCUMENTS SHOW BAXTER PLEADED GUILTY TO A SOLE COUNT OF VIOLATING THE ANTIBOYCOTT LAW FOR PROVIDING INFORMATION ABOUT ITS BUSINESS IN ISRAEL IN A FEBRUARY 1988 LETTER TO ARAB LEAGUE BOYCOTT AUTHORITIES THE ANTIBOYCOTT LAW GENERALLY FORBIDS ANY SUCH DISCLOSURES THAT ARE PART OF AN EFFORT TO BE REMOVED FROM THE BLACKLIST THE COMPANY AND MR ABBEY AGREED TO PAY THE US GOVERNMENT 66 MILLION IN CIVIL AND CRIMINAL FINES BY FAR THE LARGEST EVER ASSESSED UNDER THE BOYCOTT STATUTE MR ABBEY 59 YEARS OLD WASN'T CHARGED CRIMINALLY HE AGREED TO PAY A CIVIL SETTLEMENT OF 101000 ALSO UNDER THE AGREEMENT BAXTER IS PROHIBITED FOR TWO YEARS FROM DOING BUSINESS IN SYRIA AND SAUDI ARABIA UP TO NOW THE COMMERCE DEPARTMENT HAS MERELY LEVIED CIVIL FINES AGAINST COMPANIES THAT COOPERATED WITH THE ARAB BOYCOTT AGAINST ISRAEL BUT THE BAXTER PLEA COULD SIGNAL AN ERA OF MORE RIGOROUS ENFORCEMENT OF THE 16YEAROLD ANTIBOYCOTT STATUTE OBSERVERS SAY BAXTER WAS A SPECIAL CASE IN THAT IT COULD EASILY BE DISCOVERED IT WAS PRETTY BRAZEN SAYS E JOHN KELLER A FORTH WORTHBASED POLITICAL RISK CONSULTANT FOR CORPORATIONS BUT ANY US COMPANY THAT WAS THINKING ABOUT PULLING OUT OF ISRAEL MIGHT THINK TWICE ABOUT IT NOW FOR BAXTER AND ITS CHAIRMAN VERNON R LOUCKS JR THE PLEA AGREEMENT IS CALCULATED TO CUT LOSSES AND PRESERVE BAXTER'S DOMINANT POSITION IN THE HOSPITALSUPPLY BUSINESS HE ASSIGNED MR ABBEY IN THE FIRST PLACE TO THE TASK OF EXTRICATING THE COMPANY FROM THE BLACKLIST BY AGREEING TO THE GOVERNMENT'S DEAL BAXTER AND MR LOUCKS WILL AVOID MONTHS OF MESSY DETAILS THAT WOULD COME OUT DURING A PROTRACTED CRIMINAL TRIAL BUT PUTTING THE SCANDAL TO REST WON'T BE THAT EASY AND MORE IS AT STAKE THAN BAXTER'S REPUTATION SOME JEWISH AND GOVERNMENTRUN HOSPITALS FOR INSTANCE COULD REDUCE OR EVEN CEASE MAKING PURCHASES FROM BAXTER AND AS FOR MR LOUCKS IT REMAINS TO BE SEEN WHETHER BAXTER DIRECTORS WILL HOLD HIM RESPONSIBLE FOR CRIMINAL ACTIVITY OCCURRING OVER SEVERAL YEARS ON HIS WATCH MR ABBEY'S LAWYER WILLIAM JOSEPH LINKLATER SAYS THAT THE BOYCOTT LAW IS MURKY AND THAT MARSH'S ACTIONS WERE REASONABLE MR LINKLATER SAYS MR ABBEY BELIEVED HE WAS ACTING PROPERLY UNDER AN EXCEPTION IN THE BOYCOTT LAW ALLOWING COMPANIES TO SUBMIT TO A COUNTRY INFORMATION REQUIRED BY THE LOCAL LAW OF THAT NATION BAXTER ITSELF ALSO CITED THAT PORTION OF THE LAW AND SAID IT INTENDED ITS ACTIONS TO BE IN COMPLIANCE WITH THE FEDERAL LAW BAXTER ALSO NOTED THAT THE GOVERNMENT DID NOT CHARGE IT WITH ANY BRIBES IN ITS EFFORT TO GET OFF THE BLACKLIST THE STORY OF BAXTER'S CAMPAIGN TO ESCAPE THE BLACKLIST BEGAN SHORTLY AFTER ITS MERGER IN 1985 WITH ANOTHER CHICAGOAREA HEALTHCARE GIANT AMERICAN HOSPITAL SUPPLY CO BEGINNING SOON AFTER THAT MESSRS LOUCKS AND ABBEY MADE IT ONE OF MR ABBEY'S MANAGEMENT OBJECTIVES TO GET THE COMPANY OFF THE LIST STRIKINGLY HANDSOME AND 6FOOT5 MR LOUCKS WHO IS 58 WAS A YALE FOOTBALL PLAYER AND MARINE LIEUTENANT WHO BECAME A PROTEGE OF WILLIAM B GRAHAM BAXTER'S FORMER TOP EXECUTIVE MR LOUCKS TOOK OVER BAXTER'S LEADERSHIP FROM MR GRAHAM IN 1980 A PRIMARY CONFIDANT OF MR LOUCKS WAS MR ABBEY A 28YEAR BAXTER VETERAN A GRADUATE OF CORNELL LAW SCHOOL AND A RESIDENT OF WINNETKA ILL MR ABBEY HAS BEEN VIEWED AS CAUTIOUS AND GUARDED HE'S THE SORT OF GUY WHO ALWAYS HAS HIS JACKET ON SAYS ONE EXECUTIVE WHO KNOWS HIM WELL EARLY IN THE EFFORT MR ABBEY HOOKED UP WITH A SYRIAN NATIONAL LIVING IN PARIS NAMED NIZAR RASLAN SOON AFTER THAT BAXTER STARTED PAYING MR RASLAN MORE THAN 30000 A MONTHMUCH OF IT TO HELP IN DELISTING BAXTER ACCORDING TO LAWENFORCEMENT AUTHORITIES ULTIMATELY BAXTER'S PAYMENTS TO MR RASLAN EXCEEDED 700000 MR RASLAN CAME UP WITH A PLAN UNDER THE LAW THAT GUIDES THE ARAB LEAGUE IN MAINTAINING THE BOYCOTT MR RASLAN SAID THAT A US COMPANY COULD ESCAPE THE LIST BY MAKING A CAPITAL INVESTMENT IN THE ARAB WORLD EQUAL TO THAT WHICH IT HAS IN ISRAEL MR RASLAN SET UP A MEETING IN DAMASCUS BETWEEN MR ABBEY AND GASSEM OTTABACHI A SYRIAN BUSINESSMAN WHO WAS TO ASSIST IN THAT INVESTMENT BUT MR OTTABACHI STRESSED THAT BAXTER NEEDED TO DO MORE IT WOULD ALSO HAVE TO CEASE ITS BUSINESS IN ISRAEL WHICH CONSISTED OF AN INTRAVENOUSFLUIDS PLANT IN ASHDOD ISRAEL MR ABBEY'S INITIAL RESPONSE WAS THAT BAXTER COULDN'T DO THAT ACCORDING TO LAWENFORCEMENT AUTHORITIES MR OTTABACHI ALSO INTRODUCED MR ABBEY TO A DAMASCUS ATTORNEY WHO PREPARED A LEGAL OPINION TO JUSTIFY BAXTER'S TURNING OVER TO THE SYRIANS DETAILS OF ITS BUSINESS IN ISRAEL HOWEVER LAWENFORCEMENT AUTHORITIES CONCLUDED THIS OPINION WAS A FALSE RATIONALE AND THAT MR ABBEY KNEW SO HIS DEFENSE LAWYER SAYS MR ABBEY BELIEVED HE WAS ACTING PROPERLY UNDER US LAW DURING THIS PERIOD ACCORDING TO PEOPLE FAMILIAR WITH THE CASE MR ABBEY RECEIVED A LEGAL OPINION FROM A US EXPERT ON THE AMERICAN BOYCOTT LAW THAT THESE DEALINGS IN SYRIA COULD WELL BE VIOLATIONS BUT PRESSURE WAS BUILDING ON BAXTER BY 1987 TO GET OFF THE BLACKLIST AND FROM AN UNEXPECTED SOURCE NESTLE SA OF SWITZERLAND TOLD BAXTER IT WOULD BACK OUT OF A PROPOSED CLINICAL NUTRITION VENTURE IF BAXTER FAILED TO GET OFF BY THE END OF 1987 HELP ARRIVED ALSO FROM AN UNEXPECTED DIRECTION TEVA AN ISRAELI PHARMACEUTICAL CONCERN OFFERED TO BUY BAXTER'S ISRAELI PLANT WITHIN MONTHS THAT SALE WAS CONSUMMATED IN THE MEANTIME MESSRS ABBEY AND RASLAN HAD PREPARED A LETTER FOR SYRIAN AUTHORITIES THAT BECAME CRUCIAL EVIDENCE IN THE PROSECUTION THE LETTER TO SYRIAN GEN MOHAMMED SAMI AKEL WAS PREPARED ON THE STATIONERY OF BAXTER AG A SWISS UNIT AND SIGNED BY THAT UNIT'S MANAGER PIERRE BINGGELI IN IT BAXTER ESSENTIALLY VOLUNTEERED TO SUPPLY INFORMATION TO SYRIAN AUTHORITIES ON BAXTER'S PULLOUT FROM ISRAEL ACCORDING TO PEOPLE FAMILIAR WITH THE CASE THE CORRESPONDENCE BETWEEN BAXTER AND SYRIAN OFFICIALS BECAME THE BACKBONE OF THE GOVERNMENT'S CASE AGAINST BAXTER SOME OF IT WAS TURNED UP BY A FORMER BAXTER EXECUTIVE NAMED RICHARD C FUISZ A PHYSICIAN WHO RUNS A MEDICAL TECHNOLOGY FIRM IN CHANTILLY VA NEAR WASHINGTON IN 1982 HE RAN A BAXTER MIDDLE EASTERN UNIT MEDCOM INC BUT AFTER MR LOUCKS FIRED HIM DR FUISZ SET OUT ON A DECADELONG CAMPAIGN TO GET REVENGE PRIMARILY BY SEEKING BAXTER DOCUMENTS ON FILE IN THE ARAB WORLD BY 1990 HE HAD OBTAINED THROUGH SOURCES IN THE ARAB WORLD KEY DOCUMENTS FROM THE DAMASCUSBASED ARAB LEAGUE THAT HE TURNED OVER TO FEDERAL AGENTS IN THE COMMERCE DEPARTMENT HE FIRST CONTACTED THE COMMERCE DEPARTMENT'S WASHINGTONBASED OFFICE OF ANTIBOYCOTT COMPLIANCE IN FEBRUARY 1990 AND WAS DIRECTED TO INVESTIGATOR RONALD H PRICHEP MR PRICHEP IN TURN RESOLUTELY PURSUED THE BAXTER INVESTIGATION AS A CIVIL CASE EVEN RISKING HIS JOB IN THE PROCESS WILLIAM V SKIDMORE WHO FOR YEARS HAS BEEN DIRECTOR OF THE COMMERCE DEPARTMENT'S ANTIBOYCOTT OFFICE HAS LONG MAINTAINED THE ARAB BOYCOTT STATUTE SHOULD BE ENFORCED ONLY CIVILLY AND NOT THROUGH CRIMINAL PENALTIES GOVERNMENT INVESTIGATORS SAY MR SKIDMORE DIDN'T RETURN A PHONE CALL THE LAW PASSED IN 1977 PROVIDES CRIMINAL AND CIVIL PENALTIES AMONG THE DOCUMENTS THAT DR FUISZ TURNED OVER TO COMMERCE OFFICIALS WAS A LETTER TO SYRIAN OFFICIALS FROM MR ABBEY DATED FEB 25 1988 THAT SAID THERE IS NO PRESENT INTENTION TO MAKE NEW INVESTMENTS IN ISRAEL OR TO SELL NEW TECHNOLOGY TO ISRAELI COMPANIES MR ABBEY HAS SAID IN AN INTERVIEW WITH THIS NEWSPAPER THAT THIS WAS NOT A PROMISE FURTHER AN ARAB LEAGUE MEMO THAT DR FUISZ OBTAINED SHOWED THAT A BAXTER UNIT PROMISED NOT TO DELIVER MODERN TECHNOLOGY TO OR DO BUSINESS WITH ISRAEL AS IT TURNED OUT SEVERAL WITNESSES BALKED AT TESTIFYING UNLESS COMPELLED TO DO SO IN A CRIMINAL CASE AMONG THESE WITNESSES ACCORDING TO PEOPLE FAMILIAR WITH THE CASE WERE LAWRENCE HN KINET WHO ONCE HEADED THE COMPANY'S INTERNATIONAL DIVISION AND FORMER BAXTER AIDES THOMAS RUSSILLO AND JOHN SABOURA WHO ACCOMPANIED MR ABBEY TO SYRIA BUT MR SKIDMORE REFUSED TO REFER THE CASE TO THE JUSTICE DEPARTMENT FOR CRIMINAL PROSECUTION MR PRICHEP COMPLAINED ABOUT HIS SUPERIOR'S ACTIONS TO THE COMMERCE DEPARTMENT'S INSPECTOR GENERAL OFFICE A SEPARATE INVESTIGATIVE BRANCH AND MR PRICHEP CONTINUED TO PUSH HIS BOSS ON THE TOPIC ULTIMATELY INFURIATING HIM IN TIME MR PRICHEP WAS HANDED A LUKEWARM PERFORMANCE REVIEW LATER RESCINDED AND WAS PASSED OVER FOR PROMOTION ACCORDING TO GOVERNMENT INVESTIGATORS BY EARLY 1992 THE OFFICE ENVIRONMENT BECAME SO DIFFICULT FOR HIM THAT MR PRICHEP LEFT THE GOVERNMENT HE WENT TO WORK AT THE COMPANY RUN BY DR FUISZ WHOM HE HAD GOTTEN TO KNOW DURING MONTHS OF INVESTIGATIVE WORK DR FUISZ SAYS HE HIRED MR PRICHEP AT THE SAME SALARY HE WAS EARNING FROM THE GOVERNMENT BUT BY THEN A SEPARATE OFFICE OF THE COMMERCE DEPARTMENT HAD BECOME INTERESTED IN THE CASE THESE AGENTS FROM THE COMMERCE DEPARTMENT'S OFFICE OF EXPORT ENFORCEMENT IN CHICAGO WERE EXPERIENCED IN CRIMINAL CASES IN THE PAST THEY HANDLED PROSECUTIONS OF COMPANIES AND PEOPLE WHO HAD ILLEGALLY SHIPPED AMERICAN HIGHTECH EQUIPMENT TO IRON CURTAIN COUNTRIES THESE INVESTIGATORS IN TURN WENT TO ASSISTANT US ATTORNEY MARK L ROTERT 40 CHIEF OF THE MAJOR CRIMES DIVISION IN THE CHICAGO FEDERAL PROSECUTION OFFICE A VETERAN PROSECUTOR WHO HAD CONVICTED CORRUPT POLICE OFFICERS AND SOYBEAN TRADERS MR ROTERT IMMEDIATELY JUMPED AT THE BAXTER CASE IN 1991 THE PROSECUTOR BEGAN PRESENTING INFORMATION TO A FEDERAL GRAND JURY THESE INVESTIGATORS DEVELOPED THE KEY WITNESSES IN THE CASE MESSRS SABOURA RUSSILLO AND RASLAN THEY ALSO TURNED UP A MEMO WRITTEN BY MR ABBEY TO HIS SUPERIORS AT BAXTER IN WHICH HE OUTLINED HIS ACHIEVEMENTS FOR THE YEAR 1989 INCLUDING THE BOYCOTT DELISTING IN THE MEMO ACCORDING TO COURT DOCUMENTS MR ABBEY SAID HE HAD ACCOMPLISHED THE REMOVAL AT GREAT PERSONAL AND PROFESSIONAL RISK JAMES P MILLER CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR A GOOD BUREAUCRAT DOES THE RIGHT THING WSJ MAY 27 1993 9303260003 YY93 MM05 9305260179 930526 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB WHEN PRESIDENT CLINTON INVITED HIS CABINET TO CAMP DAVID THIS YEAR HE ASKED HILLARY RODHAM CLINTON TO TELL EVERYBODY THE STORY OF HOW SHE LED THE DRIVE TO REFORM THE EDUCATION SYSTEM IN ARKANSAS MRS CLINTON'S STORY IS WORTH REEXAMINING NOW BECAUSE PRESIDENT CLINTON IS FLAT ON THE POLITICAL MAT AND NEEDS HIS WIFE'S COMING HEALTHCARE REFORM PLAN TO HELP PUT HIM BACK ON HIS FEET THERE ARE SIMILARITIES IN THE PATH MRS CLINTON TRAVELED ON EDUCATION THEN AND THE HEALTHCARE PATH SHE IS ON NOW BILL CLINTON WAS SEEKING A POLITICAL COMEBACK MRS CLINTON FORMED A TASK FORCE TO CHALLENGE AN ENTRENCHED SYSTEM HELD WELL PUBLICIZED HEARINGS LAUNCHED A GRAND REFORM PLAN AND SALES CAMPAIGN FOUGHT BRUISING BATTLES OVER TAXES AND ULTIMATELY WON THAT EXPERIENCE OFFERS LESSONS FOR A WHITE HOUSE IN TROUBLE MRS CLINTON'S HEALTHCARE INITIATIVE REPRESENTS A GIANT ROLL OF THE DICE ONE THAT COULD REVIVE THE ADMINISTRATION IF IT WORKS OR SINK IT IF IT DOESN'T ALREADY THE CLINTONS ARE PAYING A PRICE FOR THE GAMBLE THE INTENSE FOCUS ON HEALTH CARE HAS SAPPED THE ATTENTION OF MRS CLINTON A TOUGHMINDED POLITICAL ADVISER WHO OTHERWISE MIGHT HAVE FORESEEN THE POLITICAL SNARES THAT HAVE TRAPPED HER HUSBAND NOW THE CLINTONS MUST HOPE THEY CAN REPEAT THE FORMULA THAT WORKED ON EDUCATION IN ARKANSAS IN A NUTSHELL IT WAS IDENTIFY ENEMIES EVERYONE CAN SEE BE PREPARED TO CONFRONT YOUR FRIENDS AND BE FLEXIBLE IN DEALING WITH TIMID LAWMAKERS SEEKING POLITICAL COVER ABOVE ALL DON'T PROMISE MIRACLES EDUCATION REFORM WAS A SUCCESS BUT HAS HARDLY PRODUCED THE SPECTACULAR RESULTS PROPONENTS SUGGEST THE PARALLELS BETWEEN THE CLINTONS' SITUATIONS A DECADE AGO AND TODAY ARE EERIE THEN AS NOW BILL CLINTON WAS TRYING TO RETURN FROM THE POLITICAL WILDERNESS HE HAD BEEN GOVERNOR LOST THE JOB AND HAD JUST WON IT BACK HE DECIDED THAT REFORMING ARKANSAS' WOEFUL EDUCATION SYSTEM WOULD BE THE CORNERSTONE OF HIS NEW ADMINISTRATION AND PUT HIS WIFE IN CHARGE SHE HIT THE ROAD HOLDING PUBLIC HEARINGS IN EACH OF ARKANSAS' 75 COUNTIES IN SHORT ORDER HER COMMISSION PRODUCED A BILL SETTING NEW STANDARDS FOR ARKANSAS SCHOOLS AND STUDENTS IMPOSING NEW CURRICULUM REQUIREMENTS RAISING TEACHER PAY AND LENGTHENING THE SCHOOL DAY IN A PERFORMANCE THAT AMAZED FRIEND AND FOE ALIKE MRS CLINTON APPEARED BEFORE THE ARKANSAS LEGISLATURE AND EXPLAINED HER REFORM PACKAGE FOR MORE THAN AN HOUR WITHOUT BENEFIT OF NOTES SHE GOT A STANDING OVATION THEN SHE HIT THE ROAD AGAIN TO SELL THE PLAN AUTHOR DAVID OSBORNE DESCRIBED THE SCENE IN HIS BOOK LABORATORIES OF DEMOCRACY THE CLINTONS PULLED OUT ALL THE STOPS TO GET THE REFORM PACKAGE THROUGH THE LEGISLATURE THEY RAISED MONEY FROM THE BUSINESS COMMUNITY FOR ADS IN THE MEDIA THEY GAVE OUT THOUSANDS OF BLUE RIBBONS ASKING PEOPLE TO WEAR THEM TO BROADCAST THEIR THEME OUR KIDS NEED A BLUERIBBON EDUCATION' AND THEY DRUMMED HOME THE MESSAGE THAT EDUCATION MEANT JOBS BUT HORSETRADING WAS STILL NEEDED THE LEGISLATURE THREW OVERBOARD TWO OF THE THREE TAX INCREASES MR CLINTON PROPOSED TO FUND HIGHER TEACHER SALARIES LEAVING ONLY A SALES TAX INCREASE AND CRUCIALLY MR CLINTON RESPONDED TO A POPULAR DESIRE TO GO AFTER INCOMPETENT TEACHERS BY PROPOSING A BILL REQUIRING TEACHER TESTING THAT PUT HIM ON A COLLISION COURSE WITH HIS FRIENDS IN THE TEACHERS' LOBBY WHO THOUGHT THEY WERE BEING TURNED INTO POLITICAL PUNCHING BAGS TO HELP SELL HIS PROGRAM IT WAS STRICTLY A FALLGUY SITUATION SAYS GRAINGER LEDBETTER PRESIDENTELECT OF THE ARKANSAS EDUCATION ASSOCIATION BUT IT WORKED THE CLINTON REFORMS BECAME LAW HAVE THEY SUCCEEDED THE RESULTS ARE MIXED TEACHER SALARIES ARE UP AS ARE SCHOLASTIC APTITUDE TEST SCORES BUT STATISTICS SHOW THAT ARKANSAS EIGHTHGRADERS STILL RANK IN THE BOTTOM ONETHIRD IN MATHEMATICS PROFICIENCY AMONG 42 STATES RATED MANY ARKANSANS THINK MRS CLINTON'S MAIN ACHIEVEMENT WAS SIMPLY PUTTING EDUCATION FIRMLY ATOP THE ARKANSAS AGENDA THE PARALLELS BETWEEN THE ARKANSAS EXPERIENCE AND THE HEALTHCARE DEBATE ARE OBVIOUS THEN AND NOW FOR INSTANCE THE STORIES TOLD AT PUBLIC HEARINGS HAVE DEEPLY AFFECTED MRS CLINTON ONE PARTICIPANT IN THE ADMINISTRATION'S CURRENT HEALTH DEBATE SAYS SHE WILL FREQUENTLY INTERRUPT POLICY DISCUSSIONS WITH COMMENTS BEGINNING WHEN I WAS IN HOUSTON I HEARD THIS BUT THE CRUCIAL LESSON TO BE GLEANED FROM THE ARKANSAS EXPERIENCE IS THAT VOTERS HAVE TO BE WARNED THAT CHANGES WON'T COME INSTANTLY A NOTION THE WHITE HOUSE HAS DONE A MISERABLE JOB GETTING ACROSS ON OTHER ISSUES ONE OF THE PROBLEMS WE'VE HAD IS THAT TOWARD THE END OF THE CAMPAIGN AND THE FEW MONTHS THEREAFTER WE WERE ALL SO EXUBERANT ABOUT THE PROCESS OF CHANGE THAT WE'VE LOST SIGHT OF HOW LONG CHANGE WOULD TAKE SAYS CLINTON STRATEGIST PAUL BEGALA 9305260178 930526 MARKETING & MEDIA ADVERTISING LAGGING NBC SETS KELLOGG PACT HOPES TO MAKE A KILLING ON CEREAL BY KEVIN GOLDMAN THIRDPLACE NBC NETWORK STARVING FOR PRIMETIME HITS IS PROWLING THE SUPERMARKET AISLES FOR VIEWERS IN A LONGRUMORED PROMOTIONAL PARTNERSHIP WITH KELLOGG CEREALS THE PLAN WHICH NBC IS EXPECTED TO ANNOUNCE TODAY WILL FEATURE THE MUGS OF SUCH NBC STARS AS JERRY SEINFELD AND JAY LENO ON THE BOXES OF SOME KELLOGG'S CEREALS SUCH AS CORN FLAKES AND SPECIAL K NBC IS ALSO EXPECTED TO ANNOUNCE TODAY A WATCH AND WIN GAME IN PARTNERSHIP WITH KELLOGG OFFERING CASH AND MERCHANDISE PRIZES THE DEAL WITH KELLOGG IS JUST ONE OF SEVERAL UNUSUAL PROMOTIONAL EFFORTS BY NBC A UNIT OF GENERAL ELECTRIC TO BOOST ITS PROFILE NOW THAT HOUSEHOLDS ARE TURNING AWAY FROM ITS REGULARLY SCHEDULED SERIES IT ISN'T THE FIRST DEAL OF ITS KIND LAST YEAR CBS PAIRED WITH THE NABISCO COOKIE AND CRACKER BRAND AND NBC HAS IN THE PAST PAIRED UP WITH SEARS AND MCDONALD'S TO PROMOTE PROGRAMS BUT THIS TIME NBC IS IN PARTICULARLY DIRE STRAITS THE NETWORK'S PRIMETIME RATINGS FELL 10 LAST SEASON TO AN AVERAGE 11 OF THE NATION'S 931 MILLION HOUSEHOLDS NBC WHICH USED TO BE KNOWN AS THE HOUSE OF HITS IS TEARING UP ITS PRIME TIME LINEUP LEAVING ONE NIGHT MONDAY INTACT IT IS ADDING 11 NEW SHOWS IN SEPTEMBER REPRESENTING 8 1/2 HOURS OF NEW SHOWS WITH CHEERS FINALLY GONE NBC HAS NO HIT OF ITS MAGNITUDE ON THE HORIZON THE KELLOGG DEAL FOR NBC IS PART OF A BROADER EFFORT TO PROMOTE ITS LINEUP INCLUDING A MAJOR PUSH FOR TONIGHT SHOW HOST JAY LENO INVOLVING HUGE BILLBOARDS IN NEW YORK'S TIMES SQUARE THE NETWORK WILL ALSO SOON BEGIN AIRING PROMOTIONAL ANNOUNCEMENTS AIMED AT ESTABLISHING THE NETWORK'S BRAND NAME FEATURING A NUMBER OF STARS FROM VARIOUS SERIES IN THE PAST NBC ESCHEWED SUCH SPOTS IN FAVOR OF PUSHING INDIVIDUAL SHOWS ACCORDING TO INDUSTRY OFFICIALS KELLOGG FIRST APPROACHED CBS WITH THE IDEA OF PUTTING THAT NETWORK'S STARS ON CEREAL BOXES BUT CBS WAS UNCONVINCED OF THE EFFECTIVENESS OF FOODRELATED CAMPAIGNS AFTER ITS NABISCO EXPERIENCE AND PASSED CBS IS EXPECTED TO ANNOUNCE TOMORROW IT IS RENEWING ITS FOURYEAR MARKETING PARTNERSHIP WITH RETAILER KMART AFTER A ONE YEAR HIATUS KELLOGG BASED IN BATTLE CREEK MICH THEN APPROACHED NBC IF WE'RE RUNNING NO 3 DURING THE SUMMER THEN VIEWERS WON'T SEE THE PROMOTIONS FOR OUR NEW SHOWS DEBUTING IN SEPTEMBER SAYS ALAN COHEN NBC'S SENIOR VICE PRESIDENT OF MARKETING WE HAD TO FIGURE OUT A WAY TO BREAK THROUGH EVERYONE ELSE'S NOISE AND RAISE THE AWARENESS LEVELS NBC HOPES THE KELLOGG'S BOXES WILL ACT AS MINIBILLBOARDS IN SUPERMARKETS THE SPECIALLY PRODUCED CEREAL BOXES WILL BEGIN APPEARING IN SEPTEMBER AND REMAIN ON THE SHELVES THROUGH DECEMBER AN UNUSUALLY LONG PERIOD OF TIME FOR A NETWORK/SPONSOR PROMOTION USUALLY THEY RUN ONLY DURING THE FIRST FEW WEEKS OF THE NEW TELEVISION SEASON BUT ONE OF THE REASONS RIVAL CBS THE NO 1RATED NETWORK PASSED ON THE KELLOGG DEAL ONE NETWORK EXECUTIVE SAYS IS BECAUSE SUCH A PROMOTION ONLY GUARANTEES A NETWORK A LIMITED AMOUNT OF EXPOSURE IN A SUPERMARKET IN THE CASE OF A TIEIN WITH A STORE SUCH AS KMART OR SEARS THE NETWORK HAS STOREWIDE EXPOSURE AND ISN'T CONFINED TO A SHELF OR AN AISLE OF COURSE A SHOPPER ISN'T LIKELY TO SEE EVERY NBC STAR ON A BOX OF WHOLESOME CORN FLAKES ACCORDING TO ONE NETWORK OFFICIAL KELLOGG WANTS TO USE FAMILYORIENTED WHOLESOME CHARACTERS AND NATURALLY SOME OF NBC'S GRITTY SHOWS SUCH AS LAW & ORDER AND LA LAW DIDN'T FIT THE BILL IT'S LIKELY FOR INSTANCE THAT STARS FROM SUCH SHOWS AS SAVED BY THE BELL THE COLLEGE YEARS ARE CONTENDERS AND IT'S DOUBTFUL THAT FRASIER THE OFFBALANCE THERAPIST FROM CHEERS WHO IS GETTING HIS OWN SPINOFF WILL GET HIS OWN BOX FOR EXAMPLE A CEREAL BOX IS NOT THE ONLY PLACE THAT MR LENO'S LANTERNJAWED SMILING MUG WILL BE SEEN THIS SUMMER BRACING FOR INTENSE COMPETITION FROM DAVID LETTERMAN'S NEW TALK SHOW BEGINNING ON CBS THIS SEPTEMBER NBC IS PLANNING AN ALLOUT ADVERTISING AND MARKETING BLITZ WITH THE AMERICA IS STANDING UP FOR JAY SLOGAN LOCAL STATIONS ARE BEING ENCOURAGED TO PARTICIPATE WITH SUCH PROMOTIONS AS HAVING VIEWERS LITERALLY STAND UP FOR MR LENO ONE SUGGESTION FORWARDED BY NBC HAVE THE FANS IN CHICAGO'S WRIGLEY FIELD RISE FROM THEIR SEATS AND HAVE THE LOCAL NBCOWNED STATION VIDEOTAPE IT CATHAY PACIFIC AIRWAYS LTD AWARDED ITS ESTIMATED 30 MILLION GLOBAL AD ACCOUNT TO THE HONG KONG OFFICE OF INTERPUBLIC GROUP'S MCCANNERICKSON THE DARKHORSE CONTENDER IN THE PITCH AGAINST WPP GROUP'S OGILVY & MATHER CATHAY ONE OF THE LARGEST ADVERTISERS IN HONG KONG HAD ITS ACCOUNT AT LEO BURNETT WHEN CATHAY PUT THE BUSINESS INTO REVIEW EARLY THIS YEAR BURNETT'S HONG KONG OFFICE DECLINED TO DEFEND IT OGILVY HAD BEEN HEAVILY FAVORED TO WIN ROD WRIGHT OGILVY'S ASIAPACIFIC CHAIRMAN HAD BEEN PITCHING CATHAY EXECUTIVES ABOUT THE AGENCY'S DIRECT MARKETING SERVICES BEFORE THE ACCOUNT EVEN WENT INTO REVIEW THE AIRLINE IS CONSIDERED A DEMANDING CLIENT ARTHUR BULLARD CATHAY'S GENERAL MANAGER OF MARKETING INSISTED THE AIRLINE WANTED TO SEE ITS NEW AGENCY MAKE MONEY THE FIRST QUESTION WE ASKED THE AGENCIES WAS DO YOU THINK YOU'LL MAKE MONEY OFF OUR ACCOUNT' MR BULLARD SAID MCCANN'S COMPENSATION HE SAID IS LIKELY TO BE TIED TO CATHAY'S PERFORMANCE BE IT SHARE PRICE OR PROFITABILITY TANQUERAY SCHIEFFELIN & SOMERSET A JOINT VENTURE OF LVMH MOET HENNESSY LOUIS VUITTON AND GUINNESS PLC CONFIRMED THAT THE PITCH FOR ITS TANQUERAY GIN AND TANQUERAY STERLING VODKA BRANDS HAS NARROWED TO TWO NEW YORK SHOPS AMMIRATI & PURIS AND DEUTSCH/DWORIN SMITH/GREENLAND NEW YORK HANDLED THE ACCOUNT PREVIOUSLY ESTIMATED 1992 BILLINGS WERE 6 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS SMITH/GREENLAND'S JOHNNIE WALKER BLACK ACCOUNT ISN'T CURRENTLY UP FOR GRABS A CLIENT SPOKESMAN SAID DATABASE MARKETING CONDE NAST PUBLICATIONS A UNIT OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS SAID IT IS MAKING THE NAMES OF 11 MILLION MAGAZINE SUBSCRIBERS AND OTHER READERS AVAILABLE FOR TARGETED MAILINGS BY ITS ADVERTISERS THE NEW DATABASE IS BEING COMPILED WITH ADDITIONAL FINANCIAL AND DEMOGRAPHIC DATA PROVIDED BY RR DONNELLY'S METRO MAIL DATABASE COMPOSED OF ABOUT 144 MILLION NAMES CONDE NAST PUBLISHES SUCH WIDELY READ MAGAZINES AS VOGUE GLAMOUR VANITY FAIR AND ARCHITECTURAL DIGEST ACCOUNT TARKETT A FLOORING COMPANY BASED IN FRANKENTHAL GERMANY TAPPED THE SWEDISH OPERATIONS OF SAATCHI & SAATCHI CO'S BACKER SPIELVOGEL BATES FOR ITS ACCOUNT WITH ESTIMATED BILLINGS OF 15 MILLION THE SWEDISH AGENCY AGGERBORGS HAD THE ACCOUNT 9305260176 930526 BUSINESS BRIEF DIAL FILES FOR THE SALE OF 100 OF COMMON IN MOTOR COACH UNIT WASHINGTON DIAL CORP SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF ALL THE COMMON STOCK IN ITS MOTOR COACH INDUSTRIES INTERNATIONAL INC UNIT DIAL SAID IT EXPECTS THE 20 MILLION SHARES TO BE OFFERED AT A PRICE BETWEEN 14 AND 16 A SHARE INDICATING GROSS PROCEEDS OF BETWEEN 280 MILLION AND 320 MILLION THE PLANNED PUBLIC SALE APPARENTLY SPELLS THE END TO EFFORTS BY PHOENIXBASED DIAL TO SELL ITS WHOLLY OWNED MOTOR COACH INDUSTRIES UNIT PRIVATELY AS RECENTLY AS FEBRUARY DIAL SAID IT WAS EXPLORING POSSIBLE PRIVATE TRANSACTIONS WITH A NUMBER OF INTERESTED BUYERS AS WELL AS A PUBLIC STOCK SALE MOTOR COACH INDUSTRIES IS A MAKER OF INTERCITY AND TRANSIT BUSES THE COMPANY SAID THAT 16 MILLION OF THE SHARES WILL BE OFFERED IN THE US AND THE REMAINING FOUR MILLION IN INTERNATIONAL MARKETS DIAL WILL RECEIVE ALL PROCEEDS FROM THE SALE OF THE MOTOR COACH INDUSTRY SHARES AFTER THE SALE IT WON'T HOLD ANY STOCK IN ITS ONETIME UNIT BUT WOULD RETAIN A 45 MILLION SENIOR NOTE FROM MOTOR COACH INDUSTRIES UNLESS THE NOTE IS CONVERTED TO MEET UNDERWRITERS' OVERALLOTMENTS AS A DIAL UNIT MOTOR COACH INDUSTRIES LAST YEAR HAD A NET LOSS OF 24 MILLION REVENUE TOTALED 4528 MILLION THE NET LOSS INCLUDED AFTERTAX CHARGES AND WRITEDOWNS OF 315 MILLION ACCORDING TO THE SEC FILING THE COMPANY HAD NET INCOME OF 46 MILLION IN THE FIRST QUARTER OF THIS YEAR REVENUE FOR THE PERIOD TOTALED 1391 MILLION DIAL WHICH SOLD ITS GREYHOUND INTERCITY BUS OPERATIONS SOME YEARS AGO BUT RETAINED AND EVEN EXPANDED ITS BUS BUILDING OPERATIONS WITH THE 1987 PURCHASE OF GENERAL MOTORS CORP'S TRANSIT BUS BUSINESS MOTOR COACH INDUSTRIES FOR MANY YEARS BUILT ONLY INTERCITY BUSES OF THE TYPE USED BY GREYHOUND WHICH WAS ALSO ITS PRINCIPAL CUSTOMER DIAL'S SALE OF THE MOTOR COACH INDUSTRIES STOCK WILL SEVER ONE OF ITS LAST TIES TO THE BUS BUSINESS DIAL HAS CONCENTRATED ON ITS DIAL SOAP PRODUCTS ALONG WITH AIRLINE CATERING AND VARIOUS CRUISE AND TRAVEL SERVICES ACCORDING TO THE SEC FILING MOTOR COACH INDUSTRIES EXPECTS TO PAY AN INITIAL QUARTERLY DIVIDEND OF FIVE CENTS A SHARE THE OFFERING IS BEING MADE THROUGH SALOMON BROTHERS INC AND LEHMAN BROTHERS AS SOLE UNDERWRITERS 9305260175 930526 MARKETING & MEDIA NEWS CORP'S FOX TO ADD SIX HOURS OF NEW PROGRAMS BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FOX NETWORK IS ADDING SIX HOURS OF NEW PROGRAMMING AND MOVING TWO OF ITS HIT SHOWS TO TUESDAY NIGHT WHERE PROGRAMS IT DEBUTED LAST YEAR BOMBED FOX WHICH WENT TO SIX NIGHTS WITH THE TUESDAY LINEUP LAST YEAR WILL BECOME A SEVENNIGHTAWEEK NETWORK NEXT SEASON FOR THE FIRST TIME ADDING A MONDAY NIGHT LINEUP OF MOVIES AS EXPECTED FOX IS REDUCING ITS SUNDAY PROGRAMMING BY ONE HOUR RETURNING THE 10 PM HOUR TO AFFILIATES FOR LOCAL PROGRAMMING ROC A COMEDY ABOUT A SANITATION WORKER AND HIS FAMILY AND AMERICA'S MOST WANTED ONE OF THE ORIGINAL REALITYBASED PROGRAMS WILL MOVE TO TUESDAYS FOR THE 199394 TELEVISION SEASON BEGINNING IN SEPTEMBER THE SHOWS REPLACED THE CANCELED CLASS OF '96 AND KEY WEST SERIES A BREAKOUT HIT HAS SO FAR ELUDED THE MATURING NEWS CORP NETWORK WHICH IS EXPERIENCING MORE THAN ITS SHARE OF GROWING PAINS ITS HIGHEST RATED SHOW IS THE SIMPSONS WHICH IS RANKED NO 29 IN HOUSEHOLD RATINGS BY AC NIELSEN CO A NEW COMEDY THAT AIRS FOLLOWING THE SIMPSONS TITLED MARTIN WAS RANKED NO 46 LAST SEASON BUT AMONG ADULTS 18 TO 34 YEARS OLD THE MOST ATTRACTIVE DEMOGRAPHIC TO ADVERTISERS FOX SCORES WITH FIVE OF THE TOP 20 SHOWS INCLUDING THE SIMPSONS AT NO 4 AND MARRIED WITH CHILDREN AT NO 10 ALTHOUGH FOX HAS ATTRACTED A LOT OF ATTENTION WITH CLEVER SOMETIMES RISQUE SHOWS INCLUDING IN LIVING COLOR THE NETWORK CONTINUES TO HAVE TROUBLES ESTABLISHING ITSELF AS A FULL COMPETITOR TO THE THREE MAJOR NETWORKS YESTERDAY FOX TOLD ADVERTISERS THAT IT CANCELED A PLETHORA OF SHOWS INCLUDING THE ANTHOLOGY SERIES TRIBECA THE EDGE FLYING BLIND SIGHTINGS THE BEN STILLER SHOW AND DOWN THE SHORE FOX SAID THAT ONE OF ITS REALITY SHOWS CODE 3 HAS BEEN ORDERED AS A MIDSEASON REPLACEMENT IN PLACE OF THE CANCELED SHOWS FOX HAS TURNED TO WELLKNOWN YOUTHDRIVEN STARS SUCH AS SINBAD A STANDUP COMEDIAN WHO WILL PLAY A SINGLE GUY ADOPTING TWO KIDS RICHARD LEWIS LATE OF ANYTHING BUT LOVE IN A SHOW FEATURING COMEDIAN DON RICKLES AS THE FATHER WHO MOVES IN WITH MR LEWIS AND HIS SEVENYEAROLD SON AND DIRECTOR AND ACTOR ROBERT TOWNSEND WHO HOSTS A ONEHOUR VARIETY SHOW AMONG THE DRAMAS ADDED TO FOX IS THE XFILES ABOUT UNUSUAL FBI CASES FOX IS PLACING ITS FIRST NEWS MAGAZINE EFFORT FRONT PAGE IN THE DUBIOUS TIME SLOT OF SATURDAYS AT 9 PM FOX SAID THAT SATURDAY IS THE ONLY NIGHT THAT DOESN'T HAVE SUCH AN OFFERING FROM ANY NETWORK FOX HAS HIGH HOPES FOR SINBAD AND PLACED IT THURSDAYS FOLLOWING THE SIMPSONS AND A ONEHOUR WESTERN OF A BOUNTY HUNTER THE ADVENTURES OF BRISCO COUNTY JR WHICH WILL AIR FRIDAYS AT 8 PM 9305260173 930526 WHO'S NEWS ZYGO CORP ZYGO CORP MIDDLEFIELD CONN THIS MAKER OF LASERBASED ELECTROOPTICAL MEASURING INSTRUMENTS ELECTED MICHAEL R CORBOY 59 YEARS OLD A DIRECTOR INCREASING THE BOARD TO SEVEN MEMBERS MR CORBOY RETIRED IN LATE 1991 AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMTECH CORP 9305260172 930526 US ISN'T LIABLE IN ACCOUNTING CHANGE FOR S&LS COURT RULES WASHINGTON A FEDERAL APPEALS COURT RULED THE GOVERNMENT WASN'T LIABLE FOR DAMAGES ALLEGEDLY SUFFERED BY THRIFTS AS THE RESULT OF ACCOUNTING CHANGES MADE AS PART OF THE SAVINGSANDLOAN CLEANUP LAW THE RULING UPSETS A LOWER COURT DECISION IN FAVOR OF STRUGGLING GLENDALE FEDERAL BANK OF GLENDALE CALIF AND IT FURTHER CLOUDS EFFORTS BY THE NATION'S FIFTHLARGEST THRIFT A UNIT OF GLENFED INC TO BLOCK SEIZURE BY THE GOVERNMENT IN ADDITION THE RULING CASTS DOUBT ON SOME 40 OTHER LAWSUITS PENDING IN FEDERAL COURT HERE TOGETHER THE SUITS THREATEN TO ADD POTENTIALLY BILLIONS OF DOLLARS TO THE COST OF THE S&L BAILOUT GLENFED STOCK FELL 1 TO CLOSE AT 2 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AT ISSUE IS A PROVISION OF THE FINANCIAL INSTITUTIONS REFORM RECOVERY AND ENFORCEMENT ACT OF 1989 THAT PROHIBITED THRIFTS FROM INCLUDING GOODWILL IN CALCULATING THEIR CAPITAL FOR REGULATORY PURPOSES GLENDALE AND OTHER THRIFTS GENERATED HUGE AMOUNTS OF GOODWILL ON THEIR BALANCE SHEETS IN THE EARLY1980S WHEN THEY ACQUIRED FAILING INSTITUTIONS THE ACCOUNTING CHANGE LEFT THE INSTITUTIONS WITH SERIOUS PROBLEMS IN MEETING NEW CAPITAL STANDARDS IN JULY 1992 A US CLAIMS COURT JUDGE RULED THE GOVERNMENT WAS LIABLE FOR BREACH OF CONTRACT IN CONNECTION WITH THE ACCOUNTING CHANGES BASED ON ASSURANCES THAT REGULATORS GAVE THE THRIFTS AT THE TIME THEY MADE THEIR ACQUISITIONS YESTERDAY IN A 21 DECISION A PANEL OF THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT REVERSED THE LOWER COURT RULING THE APPELLATE PANEL SAID THE LOWER COURT HAD INCORRECTLY APPLIED THE DOCTRINE OF SOVEREIGN IMMUNITY THE PANEL ALSO SAID THE THRIFTS IN THEIR NEGOTIATIONS WITH REGULATORS FAILED TO PROTECT THEMSELVES FROM THE POSSIBILITY THAT CONGRESS WOULD LATER CHANGE THE ACCOUNTING RULES WE ARE SURPRISED AND OF COURSE DISAPPOINTED BUT THE FIGHT IS FAR FROM OVER SAID JERRY STOUCK A LAWYER FOR GLENDALE THERE WILL BE FURTHER APPEALS 9305260171 930526 WHO'S NEWS REGENCY HEALTH SERVICES INC REGENCY HEALTH SERVICES INC NEWPORT BEACH CALIF KENNETH PLUMLEE 33 YEARS OLD WAS ELECTED A DIRECTOR OF THIS HEALTHCARE FACILITIES OPERATOR HE SUCCEEDS DR JAY D GLASS 48 WHO RESIGNED IN FEBRUARY MR PLUMLEE IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ACCESS HEALTH MARKETING INC 9305260170 930526 WHO'S NEWS RIGGS NATIONAL HIRES PAUL HOMAN FOR TURNAROUND BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RIGGS NATIONAL BANK HIRED A WELLREGARDED TURNAROUND SPECIALIST PAUL M HOMAN IN AN EFFORT TO REVITALIZE ITS BANKING OPERATIONS MR HOMAN WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THE WASHINGTONBASED BANK BELIEVES HE CAN RETURN IT TO PROFITABILITY EARLY NEXT YEAR BY MOVING AGGRESSIVELY TO CLEAN UP RIGGS'S PORTFOLIO WHICH INCLUDES ABOUT 320 MILLION IN NONPERFORMING LOANS JOE L ALLBRITTON CHAIRMAN AND CHIEF EXECUTIVE OF RIGGS'S HOLDING COMPANY RIGGS NATIONAL CORP AND HOLDER OF OVER 34 OF THE BANK'S STOCK HAD INDICATED EARLIER THAT HE DIDN'T EXPECT RIGGS TO RETURN TO PROFITABILITY UNTIL LATE 1994 I'M MORE OPTIMISTIC THAN THE CHAIRMAN MR HOMAN SAID MR HOMAN 53 YEARS OLD CONCEDED RIGGS'S SERIOUS ASSETQUALITY PROBLEMS WOULD REQUIRE A GREAT DEAL OF EFFORT TO CLEAN UP ALTHOUGH THE PROBLEMS HAVE REACHED THEIR PEAK AND THE LOCAL REALESTATE MARKET IS IMPROVING THE BANK HAS SUFFERED LOSSES OVER THREE SUCCESSIVE YEARS AS PART OF THE RESTRUCTURING MR HOMAN INTENDS TO DIVIDE THE BANK INTO TWO FUNCTIONAL DIVISIONS A GOOD BANK AND A BAD BANK WITH THE LATTER CONCENTRATING ON COLLECTING AND SELLING NONPERFORMING LOANS HE ALSO SAID HE WOULD IMPLEMENT A PLAN THAT WOULD INCLUDE THE ELIMINATION OF ABOUT 550 STAFF POSITIONS THE CUTS WERE PREVIOUSLY ANNOUNCED BY RIGGS MR HOMAN WHO WAS NAMED A DIRECTOR OF THE BANK AND ITS PARENT COMPANY HAS AN IMPRESSIVE RECORD AS A BANK TURNAROUND SPECIALIST IN AUGUST 1990 HE JOINED FIRST FLORIDA BANKS INC WHOSE SHARES WERE THEN TRADING AROUND 18AND EXPECTED TO TURN IT AROUND IN THREE YEARS IN FACT IT TOOK HIM LESS THAN A YEAR FIRST FLORIDA WAS SOLD TO BARNETT BANKS INC IN 1992 FOR ABOUT 60 A SHARE OR 1 BILLION NOT EVERYONE IS CONVINCED MR HOMAN WILL MAKE DRASTIC CHANGES AT RIGGS THE ONLY DIFFERENCE BETWEEN NOW AND A YEAR AGO IS THAT RIGGS IS RECOGNIZING ITS PROBLEMS SAID ARNOLD DANIELSON PRESIDENT OF DANIELSON ASSOCIATES INC A BANK CONSULTING FIRM IN ROCKVILLE MD MR DANIELSON DESCRIBES MR HOMAN'S HIRING AS WINDOW DRESSING PARTLY AIMED AT PACIFYING FEDERAL REGULATORS WHO HAVE INCREASED PRESSURE ON THE BANK BY ENTERING INTO STRICTER SUPERVISORY AGREEMENTS THE VERY FACT THAT ALLBRITTON DIDN'T GIVE AWAY THE CEO POSITION AT THE HOLDING COMPANY MEANS THAT ALLBRITTON DOESN'T WANT ANYONE TO HAVE REAL POWER MR HOMAN'S APPOINTMENT WHICH HAD THE UNANIMOUS SUPPORT OF THE COMPANY'S SEARCH COMMITTEE AND IS STILL SUBJECT TO BOARD APPROVAL IS SCHEDULED TO TAKE EFFECT JUNE 9 9305260169 930526 WHO'S NEWS RUSSIANAMERICAN INVESTMENT BANK RUSSIANAMERICAN INVESTMENT BANK MOSCOW CLIFFORD W EVANS 49 YEARS OLD WILL BECOME THE FIRST PERMANENT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS JOINT VENTURE MR EVANS WHO WILL ASSUME HIS NEW POSITION TUESDAY MOST RECENTLY WAS GENERAL MANAGER OF MOSCOW NARODNY BANK LTD THE INVESTMENT BANK IS A JOINT VENTURE BETWEEN RUSSIAN INSTITUTIONS AND WESTERN FINANCIAL COMPANIES INCLUDING AMERICAN INTERNATIONAL GROUP INC AND CHEMICAL BANKING CORP IT WAS ESTABLISHED LAST OCTOBER WITH INITIAL AUTHORIZED CAPITAL OF 10 MILLION AND 50 MILLION RUBLES 52000 AND WILL ASSIST RUSSIAN ENTERPRISES IN RESTRUCTURING RUSSIAN INDUSTRY PARTICULARLY CONVERTING DEFENSE INDUSTRIES TO COMMERCIAL APPLICATIONS AND ON DEVELOPING RUSSIA'S NATURAL RESOURCES INDUSTRY 9305260168 930526 WHO'S NEWS VARLEN CORP VARLEN CORP NAPERVILLE ILL RUDOLPH GRUA PRESIDENT AND CHIEF EXECUTIVE OF GENERAL BINDING CORP AND L WILLIAMS MILES VICE PRESIDENT ADMINISTRATION OF FAIRFIELD UNIVERSITY WERE NAMED DIRECTORS OF THIS MAKER OF ENGINEERED PRODUCTS FOR THE TRANSPORTATION AND LABORATORY EQUIPMENT MARKETS FILLING VACANCIES THERE ARE NOW SIX BOARD MEMBERS 9305260167 930526 WHO'S NEWS NATIONAL HOME CENTERS INC NATIONAL HOME CENTERS INC SPRINGDALE ARK DAVID W TRUETZEL AND GERALD M JOHNSTON WERE NAMED TO THE BOARD OF THIS HOME IMPROVEMENT AND BUILDING MATERIALS COMPANY INCREASING THE BOARD'S SIZE TO SIX MR TRUETZEL 36 YEARS OLD IS VICE PRESIDENT OF AG EDWARDS & SONS INC OF ST LOUIS AND MR JOHNSTON 50 IS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF TYSON FOODS INC OF SPRINGDALE ARK 9305260166 930526 WHO'S NEWS THERATECH INC THERATECH INC SALT LAKE CITY LAWRENCE MUSCHEK SENIOR VICE PRESIDENT FOR RESEARCH AND DEVELOPMENT OF SOLVAY PHARMACEUTICAL CO AND JAY PISIK PRESIDENT OF PISIK CONSULTING GROUP WERE ELECTED TO THE BOARD OF THIS DRUG COMPANY INCREASING THE BOARD TO SIX MEMBERS FROM FIVE MR MUSCHEK SUCCEEDS JAMES WARREN WHO RESIGNED 9305260165 930526 WHO'S NEWS MEAD CORP MEAD CORP DAYTON OHIO DENNIS L REDIKER PRESIDENT OF THIS FORESTPRODUCTS CONCERN'S MEAD COATED BOARD DIVISION HAS STEPPED DOWN FROM THAT POST EFFECTIVE IMMEDIATELY MR REDIKER 49 YEARS OLD WAS PRESIDENT OF THE DIVISION SINCE NOVEMBER 1989 HE HAS TAKEN THE POST OF PRESIDENT OF LONDONBASED ENGLISH CHINA CLAYS INTERNATIONALAMERICAS A UNIT OF THE ENGLISH CHINA CLAYS INTERNATIONAL SUBSIDIARY OF ENGLISH CHINA CLAYS PLC P CARTER SMITH 59 CORPORATE VICE PRESIDENT WAS NAMED INTERIM PRESIDENT OF THE DIVISION UNTIL A PERMANENT SUCCESSOR IS NAMED 9305260164 930526 WHO'S NEWS BRADLEES INC BRADLEES INC BRAINTREE MASS ERNEST HEETHER 47 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT MERCHANDISE OPERATIONS FOR THIS OPERATOR OF DISCOUNT DEPARTMENT STORES HE WAS VICE PRESIDENT MERCHANDISE PLANNING & CONTROL FOR CALDOR'S INC 9305260163 930526 WHO'S NEWS PAINEWEBBER GROUP INC PAINEWEBBER GROUP INC NEW YORK LAWRENCE A ARMOUR 58 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND DIRECTOR OF PUBLIC AND INVESTOR RELATIONS FOR PAINEWEBBER INC A NEW POSITION AT THE BROKERAGE UNIT OF THIS SECURITIES FIRM MR ARMOUR HAD BEEN SENIOR VICE PRESIDENT CORPORATE COMMUNICATIONS AT AMERICAN EXPRESS CO 9305260162 930526 WHO'S NEWS PLAZA HOME MORTGAGE CORP PLAZA HOME MORTGAGE CORP SANTA ANA CALIF BRAD A MORRICE EXECUTIVE VICE PRESIDENT CORPORATE ADMINISTRATIVE OFFICER AND GENERAL COUNSEL WAS ELECTED A DIRECTOR OF THIS MORTGAGE BANKING CONCERN AND ITS SUBSIDIARY PLAZA HOME MORTGAGE BANK THE ELECTION OF MR MORRICE 36 YEARS OLD INCREASES THE BOARD TO EIGHT MEMBERS 9305260161 930526 ECONOMY CONSUMER CONFIDENCE PLUNGED IN MAY ADDING TO CONCERNS ABOUT ECONOMY BY PEARL THEVANAYAGAM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER CONFIDENCE PLUNGED IN MAY TO ITS LOWEST LEVEL SINCE JUST BEFORE PRESIDENT CLINTON'S ELECTION ACCORDING TO THE CONFERENCE BOARD RAISING FURTHER CONCERNS ABOUT THE ECONOMY THE BOARD SAID ITS CONSUMER CONFIDENCE INDEX DROPPED 61 TO 615 CONTINUING WHAT HAS BEEN EXCEPT FOR A SMALL RISE IN APRIL A FAIRLY STEADY DECLINE IN CONFIDENCE SINCE THE FIRST OF THE YEAR CONFIDENCE ERODED ACROSS MOST OF THE COUNTRY WITH AMERICANS EXPRESSING LESS OPTIMISM BOTH ABOUT CURRENT BUSINESS CONDITIONS AND ABOUT PROSPECTS FOR THE FUTURE CONSUMER CONFIDENCE CONTINUES AT LEVELS THAT ARE HISTORICALLY ASSOCIATED WITH A WEAK ECONOMY SAID FABIAN LINDEN EXECUTIVE DIRECTOR OF THE CONFERENCE BOARD'S CONSUMER RESEARCH CENTER THE DROP TRACKS A SIMILAR DECLINE IN PRESIDENT CLINTON'S POPULARITY RATINGS AND THOMAS JUSTER AN EXPERT ON CONSUMER SENTIMENT AT THE UNIVERSITY OF MICHIGAN SAYS THE TWO MAY BE RELATED I THINK THE PRESIDENT'S PROBLEMS HAVE CLEARLY HAD SOME IMPACT ON THE DEGREE TO WHICH THE BUSINESS COMMUNITY AND CONSUMERS ARE NOT FEELING CHEERFUL ABOUT THINGS SAYS MR JUSTER THEY ARE AFRAID NOTHING IS GOING TO HAPPEN BECAUSE WE'VE STILL GOT SOME VERSION OF GRIDLOCK A SEPARATE SURVEY OF CONSUMER CONFIDENCE CONDUCTED BY THE UNIVERSITY OF MICHIGAN ALSO SHOWS A DECLINE SINCE THE FIRST OF THE YEAR ALTHOUGH LESS DRAMATIC THAN THE CONFERENCE BOARD'S STILL MR LINDEN ARGUES THAT THE DECLINE IN CONFIDENCE PRIMARILY REFLECTS CONSUMERS' CONCERNS ABOUT JOBS AND INFLATION THE CONTINUING SLOW CREATION OF JOBS IN THE ECONOMY SEEMS TO BE CAUSING A SIGNIFICANT DAMPING OF CONSUMER MOOD THE CONFERENCE BOARD SURVEY WHICH IS BASED ON A REPRESENTATIVE SAMPLE OF 5000 HOUSEHOLDS ACROSS THE NATION FOUND THAT ONLY 13 THOUGHT THERE WOULD BE MORE JOB OPPORTUNITIES IN THE COMING MONTH THE LOWEST READING IN MORE THAN A YEAR JOBS CONTINUE TO BE A MAJOR CONCERN MR LINDEN SAID PESSIMISTS SUBSTANTIALLY OUTNUMBER OPTIMISTS ON THIS ISSUE RECENT ECONOMIC NEWS HAS DONE LITTLE TO EASE THESE ANXIETIES UNLIKE MR JUSTER MR LINDEN DOUBTS THAT THE PRESIDENT'S RECENT PROBLEMS ARE HAVING MUCH OF AN EFFECT ON CONFIDENCE BUT HE DOES SAY CONFIDENCE IN THE ECONOMY AND CONFIDENCE IN THE PRESIDENT MAY BE RELATED PEOPLE FEEL THINGS AREN'T GOING THAT GREAT AND SO THEY SAY THE PRESIDENT ISN'T THAT GREAT HE SAID CONSUMER CONFIDENCE IS IMPORTANT BECAUSE IT IS AN INDICATION OF HOW WILLING AMERICANS ARE TO SPEND MONEY THESE FIGURES INDICATE THAT SPENDING WILL LIKELY REMAIN VERY SUBDUED BUT ACCORDING TO THE INDEX THE BUYING PLANS OF AMERICANS DON'T LOOK SO BAD MORE HOUSEHOLDS SAID THEY WERE CONSIDERING BUYING A CAR AND MORE ALSO SAID THEY WERE THINKING ABOUT BUYING A HOME 9305260160 930526 WHO'S NEWS HEART TECHNOLOGY INC HEART TECHNOLOGY INC BELLEVUE WASH DR DAVID AUTH WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MEDICAL INSTRUMENT MANUFACTURER DR AUTH WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SUCCEEDS DR ALAN LEVY WHO VOLUNTARILY RESIGNED THE COMPANY SAID C RAYMOND LARKIN JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NELLCOR INC WILL FILL DR LEVY'S SEAT ON THE BOARD 9305260159 930526 WHO'S NEWS NEOPROBE CORP NEOPROBE CORP COLUMBUS OHIO THREE EXECUTIVES AT THIS BIOMEDICAL CONCERN WERE PROMOTED TO NEW CORPORATE VICE PRESIDENT POSITIONS JOHN SCHROEPFER 33 YEARS OLD CHIEF ACCOUNTING OFFICER AND CONTROLLER WAS NAMED VICE PRESIDENT OF FINANCE AND ADMINISTRATION DAVID P HOUCHENS 56 DIRECTOR OF LABORATORY AND CLINICAL SCIENCES WAS NAMED VICE PRESIDENT OF CLINICAL DEVELOPMENT AND TRUDIE L SEEGER 36 DIRECTOR OF REGULATORY AFFAIRS AND CLINICAL RESEARCH WAS NAMED VICE PRESIDENT OF REGULATORY AFFAIRS 9305260158 930526 WHO'S NEWS SOME SENIOR MANAGERS RESIGN FROM ICOT CORP MARKET REFOCUS CITED SAN JOSE CALIF ICOT CORP SAID SEVERAL SENIOR MANAGERS RESIGNED IN THE WAKE OF THE COMPANY'S DECISION TO REFOCUS ITS COMPUTER SOFTWARE MARKET THE SOFTWARE COMPANY SAID AAMER LATIF VICE PRESIDENT ENGINEERING WILL SUCCEED JOEL BECKER AS THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER TWO OTHER SENIOR MANAGERS KENN DAHL VICE PRESIDENT CORPORATE DEVELOPMENT AND JOHN ARNOLD VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ALSO RESIGNED THE COMPANY SAID SUCCESSORS FOR MESSRS DAHL ARNOLD AND LATIF HAVE NOT BEEN CHOSEN ICOT SAID ICOT ALSO SAID IT PLANS TO TAKE A 2 MILLION CHARGE IN ITS FOURTH QUARTER ENDING JULY 31 TO WRITE OFF SOFTWARE ASSOCIATED WITH ITS COMPUTER CONNECTIVITY LINE WHICH IS BEING REDUCED AND FOR TERMINATION EXPENSES 9305260156 930526 WHO'S NEWS PENN CENTRAL CORP PENN CENTRAL CORP CINCINNATI GARY Y KUSUMI 46 YEARS OLD WAS NAMED PRESIDENT OF LEADER NATIONAL INSURANCE CO WHICH THIS INSURER ACQUIRED FROM DYSONKISSNERMORAN CORP LAST WEEK MR KUSUMI WHO HAD HELD AN UNSPECIFIED POSITION WITH PROGRESSIVE CORP SUCCEEDS DONALD C KINTZING 63 WHO IS RETIRING MR KINTZING SAID HE HAD NO DIFFERENCES WITH PENN CENTRAL MANAGEMENT 9305260155 930526 WHO'S NEWS NATIONAL GAS & OIL CO NATIONAL GAS & OIL CO NEWARK OHIO KARL R BLETZACKER MANAGER OF GAS ACQUISITION AND MARKETING WAS NAMED VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS GAS AND OIL HOLDING COMPANY'S PRODUCERS GAS SALES INC UNIT MR BLETZACKER 37 YEARS OLD SUCCEEDS PATRICK J MCGONAGLE 38 WHO BECAME THE PARENT COMPANY'S CHIEF EXECUTIVE OFFICER IN FEBRUARY 9305260153 930526 WHO'S NEWS ENDOSONICS CORP ENDOSONICS CORP PLEASANTON CALIF PAUL NORRIS 51 YEARS OLD A CONSULTANT AND FOUNDER OF QUANTUM MEDICAL SYSTEMS WAS ELECTED A DIRECTOR OF THIS MEDICAL PRODUCTS CONCERN EXPANDING THE BOARD TO EIGHT MEMBERS 9305260152 930526 BANKAMERICA TO REDEEM NOTES SAN FRANCISCO BANKAMERICA CORP SAID IT WILL REDEEM FOR CASH 1196 MILLION IN FLOATINGRATE SUBORDINATED CAPITAL NOTES DUE AUG 1 1996 THE NOTES WILL BE REDEEMED AUG 1 AT 100 OF THEIR PRINCIPAL AMOUNT PLUS INTEREST 9305260150 930526 ENTERPRISE HOW A SMALLBUSINESS GROUP FOUND A NICHE IN TAX BILL BREAK FOR VENTURE FIRMS THAT FOCUS ON MINORITY BUSINESSES COMES TO A VOTE BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN IT COMES TO OPPORTUNITIES TO LOBBY THE PRESIDENT 15 MINUTES OF ONEONONE CONVERSATION ABOARD AIR FORCE ONE IS ABOUT AS GOOD AS IT GETS REP WILLIAM JEFFERSON A LOUISIANA DEMOCRAT SEIZED THE CHANCE DURING A FLIGHT TO NEW ORLEANS LAST MONTH TO EDUCATE PRESIDENT CLINTON ABOUT PROPOSED TAX BREAKS FOR VENTURECAPITAL COMPANIES THAT DEAL SOLELY WITH MINORITYOWNED SMALL BUSINESSES THE AIRBORNE SALES PITCH APPARENTLY WORKED IT WAS PART OF A LONG CAMPAIGN THAT ENABLED AN OBSCURE SMALLBUSINESS GROUP WITH LITTLE LOBBYING POWER AND EVEN LESS MONEY TO INFLUENCE THE LEGISLATIVE PROCESS IN THE CAPITAL WITH THE WHITE HOUSE'S SUPPORT THE INCENTIVE SURVIVED THE FIERCE NEGOTIATIONS IN THE HOUSE WAYS AND MEANS COMMITTEE TO BECOME PART OF THE CURRENT TAX BILL THE FULL HOUSE IS SCHEDULED TO VOTE ON THE BILL TOMORROW THE SUCCESS OF THE INITIATIVE HOLDS OUT HOPE TO OTHER SPECIALIZED SMALLBUSINESS SECTORS THAT ARE SHORT ON FINANCIAL RESOURCES THE VENTURECAPITAL INCENTIVE PREVAILED WITHOUT THE BACKING OF A BIG POLITICALACTION COMMITTEE FUND OR A SQUADRON OF HIGHPRICED LAWYERS WASHINGTON'S USUAL SMALLBUSINESS LOBBY WHICH ENJOYS CONSIDERABLE INFLUENCE ON CAPITOL HILL ALSO TOOK NO PART IN THE CAMPAIGN IT'S NOT LIKE WE CAN PUSH PEOPLE AROUND WE'RE NOT THE REALTORS OR THE NRA NATIONAL RIFLE ASSOCIATION SAYS WILLIAM KIRK JR COUNSEL TO THE NATIONAL ASSOCIATION OF INVESTMENT COMPANIES THE SMALL TRADE GROUP HERE THAT HAS BEEN PUSHING THE INCENTIVES FOR TWO YEARS NO PAC MONEY HAS BEEN A PART OF ANY OF THIS MR KIRK ADDS THE GROUP HAS A SIXPERSON STAFF 125 MEMBERS AND A CURRENT BUDGET OF 750000 IT ESTIMATES IT HAS SPENT ONLY 35000 ON THE LOBBYING EFFORT INDEED ONLY 118 MINORITY VENTURECAPITAL FIRMS ARE INVOLVED THE FIRMS REGULATED BY THE SMALL BUSINESS ADMINISTRATION FUNNEL A MIX OF PRIVATE AND SBAGUARANTEED VENTURE CAPITAL TO MINORITYOWNED BUSINESSES IN THE YEAR ENDED SEPT 30 THE FIRMS INVESTED 1045 MILLION IN 166 COMPANIES ACCORDING TO THE SBA THE TAXBILL LANGUAGE GIVES INVESTORS IN SUCH SPECIALIZED SMALLBUSINESS VENTURECAPITAL FIRMS THE SAME 50 CAPITALGAINS TAX CUT PROPOSED FOR OTHER SMALL BUSINESSES BY PRESIDENT CLINTON ALSO INDIVIDUAL INVESTORS COULD DEFER FROM THEIR TAXES AS MUCH AS 50000 A YEAR IN CAPITAL GAINS FROM STOCK OR PROPERTY SALES IF THE GAINS WERE REINVESTED IN MINORITY VENTURECAPITAL FIRMS CORPORATIONS COULD DEFER AS MUCH AS 250000 A YEAR THE HOUSE WAYS AND MEANS COMMITTEE ESTIMATES THAT THE MEASURE WOULD COST TAXPAYERS 320 MILLION OVER FIVE YEARS PROPONENTS OF THE MEASURE GOT AN UNEXPECTED BOOST THIS YEAR FROM A BOOK BANKING ON BLACK ENTERPRISE BY ECONOMIST TIMOTHY BATES IT ARGUES THAT SUPPORTING AFRICANAMERICAN ENTREPRENEURS IN GROWTH INDUSTRIES IS A SURE WAY TO ATTACK BLACK UNEMPLOYMENT BECAUSE BLACK EMPLOYERS TEND TO HIRE BLACK WORKERS NO MATTER WHERE THEIR COMPANIES ARE LOCATED THE BOOK HAD SOME VERY TELLING DATA THAT SUPPORTED EVERYTHING WE WERE SAYING MR KIRK SAYS BUT BY FAR THE BIGGEST HELP WAS A DECISION OF HOUSE DEMOCRATIC LEADERS IN JANUARY TO ADD REP JEFFERSON AND TWO OTHER BLACK DEMOCRATS REP JOHN LEWIS OF GEORGIA AND MEL REYNOLDS OF ILLINOIS TO THE WAYS AND MEANS PANEL THAT BROUGHT BLACK MEMBERSHIP ON THE 38MEMBER COMMITTEE TO FIVE A SMALL BUT SIGNIFICANT BLOC THAT WOULD CARRY WEIGHT IF THEY DECIDED TO PUSH THE ISSUE THE OTHER BLACK MEMBERS ARE REP CHARLES RANGEL OF NEW YORK AND REP HAROLD FORD OF TENNESSEE THAT WAS OUR TARGET GROUP SAYS JOANN PRICE PRESIDENT OF THE INVESTMENTCOMPANY ASSOCIATION MS PRICE HAD TRAVELED TO LITTLE ROCK ARK DURING THE TRANSITION TO BROACH THE IDEA OF TARGETED CAPITAL FORMATION FOR VENTURECAPITAL FIRMS TO MR CLINTON'S AIDES IN THE EARLY MONTHS OF THE NEW CONGRESS SHE COORDINATED SYMPOSIUMS AND MEETINGS WITH THE MEMBERS AND THEIR STAFFS IN MIDAPRIL MR JEFFERSON'S TAX COUNSEL CALLED MR KIRK MY BOSS IS VERY INTERESTED IN THIS HE SAID THE LOBBYISTS SPENT MOST OF A WEEK DRAFTING ALTERNATIVES WHICH EVENTUALLY WERE LAID BEFORE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI OF ILLINOIS WITH STRONG ENDORSEMENT FROM THE FIVE BLACK COMMITTEE MEMBERS THE CHAIRMAN GAVE A THUMBS UP ON FRIDAY APRIL 30 MR JEFFERSON TOOK HIS RIDE ON AIR FORCE ONE HIS THE PRESIDENT'S REACTION WAS THAT HE WOULD GET PEOPLE WORKING ON IT THAT IT WAS SOMETHING WE OUGHT TO DO IN THE CONTEXT OF THIS BILL MR JEFFERSON RECALLS WITHIN MINUTES OF THE TALK WITH THE PRESIDENT ROBERT RUBIN ONE OF MR CLINTON'S TOP ECONOMIC ADVISERS ASKED MR JEFFERSON FOR A BRIEFING OVER THE WEEKEND OFFICIALS FROM THE WHITE HOUSE AND THE TREASURY DEPARTMENT PRESSED HIM FOR DETAILS THINGS STARTED MOVING THE NEXT WEEK MR JEFFERSON SAYS WITH THE BULK OF THE TAX BILL COMPLETE THE LOBBYISTS TREASURY OFFICIALS AND HOUSE MEMBERS WORKED LONG HOURS ON THE FINAL WORDING OF THE PROPOSAL THE FINAL PRODUCT SAYS REP JEFFERSON HAS ENOUGH JUICE IN IT TO ATTRACT INVESTMENT BUT ENOUGH PROTECTION TO MAKE SURE PUBLIC MONEY ISN'T SQUANDERED MR KIRK NOW WORRIES ABOUT SELLING THE IDEA TO THE SENATE FINANCE COMMITTEE HE ALSO WORRIES THAT SBALICENSED SMALLBUSINESS INVESTMENT COMPANIES THAT DON'T DEAL EXCLUSIVELY IN MINORITY LENDING WILL DEMAND EQUAL TREATMENT IN THE SENATE BILL THAT COULD JEOPARDIZE THE WHOLE EFFORT MR KIRK PUTS THE ODDS FOR ULTIMATE PASSAGE AT 6040 IN THE WORST OF ALL WORLDS WE'LL GET DROPPED FROM THE BILL BY A HOUSESENATE CONFERENCE COMMITTEE BUT IT WILL STILL BE THE FIRST TIME ONE HOUSE OF CONGRESS HAS TOUCHED TARGETED MINORITYVENTURECAPITAL FORMATION THAT'S SOMETHING WE CAN BUILD ON 9305260149 930526 CORPORATE FOCUS LTV BEGINS TO EMERGE FROM BANKRUPTCY PROCEEDINGS BUT FIRM HOLDS OFF ON CHAMPAGNE STEELS ITSELF FOR ROUGH TIMES AHEAD BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL NO ONE SHOULD BE HAPPIER THAN LTV CORP CHAIRMAN DAVID H HOAG TODAY AFTER SEVEN LONG YEARS IN BANKRUPTCY PROCEEDINGS BATTLING WITH CREDITORS AND THE US GOVERNMENT MR HOAG'S CLEVELAND STEELMAKER FINALLY BEGINS CONFIRMATION HEARINGS THAT SHOULD LIFT IT FROM CHAPTER 11 IN A COUPLE OF WEEKS SO WHERE'S THE CHAMPAGNE WE WILL NOT HAVE A EUPHORIC CELEBRATION MR HOAG SAYS IN AN INTERVIEW THIS ISN'T THE END OF ANYTHING IT'S THE BEGINNING FOR LTV THE NEXT SEVEN YEARS PROMISE TO BE AS ARDUOUS AS THE LAST THE COMPANY STILL HAS HUGE PENSION AND MEDICAL LIABILITIES AND WILL NEED STRONG MARKET CONDITIONS OVER THE NEXT SEVERAL YEARS TO MEET ITS OBLIGATIONS AND LIKE OTHER TRADITIONAL STEELMAKERS IT FACES A GROWING THREAT FROM YOUNGER MORE AGILE PRODUCERS LTV MUST LOWER COSTS MILITANTLY IF IT IS TO SURVIVE THE NATION'S THIRDLARGEST STEELMAKER LTV USED THE BANKRUPTCY LAWS TO ITS ADVANTAGE SINCE TAKING THE TOP JOB AT LTV CORP IN EARLY 1991 MR HOAG HAS REACHED A PENSION AGREEMENT WITH THE GOVERNMENT SOLD OFF THE COMPANY'S AEROSPACE BUSINESS REACHED A NEW LABOR AGREEMENT AND CLOSED THE DALLAS HEADQUARTERS CREDITORS ALLOWED LTV TO INVEST 2 BILLION SINCE 1986 TO MODERNIZE ITS PLANTS IT GOT RID OF ITS BAR PRODUCTS IN 1989 AND SHED MORE THAN HALF OF ITS CAPACITY AND EMPLOYEES IT NOW MAKES ALMOST EXCLUSIVELY SHEET STEEL ITS PRODUCTIVITY NOW JUST OVER FOUR LABORHOURS PER TON IS BETTER THAN AVERAGE AND ITS TWO MAIN PLANTS IN INDIANA HARBOR IND AND CLEVELAND ARE AMONG THE BEST IN THE INDUSTRY LTV NOW APPEARS TO LEAD RIVALS IN TECHNOLOGY AS WELL IN SEPTEMBER IT WILL OPEN A CASTER CONNECTED TO A ROLLING MILL THAT WILL TURN RAW MATERIALS INTO COILS OF STEEL IN 45 MINUTES CLOSE TO THE EFFICIENT MINIMILLS AND WELL AHEAD OF THE HOURS OR DAYS IT TAKES FOR INTEGRATED RIVALS TO MAKE STEEL MR HOAG SAYS LTV IS THINKING ABOUT BUILDING ITS OWN MINIMILL THE COMPANY HAS ALSO WON A 150 MILLION GOVERNMENT GRANT TO STUDY ALONG WITH CLEVELAND ELECTRIC ILLUMINATING CO A COREX SYSTEM THAT MAKES RAW IRON WITHOUT COKE OVENS AND BLAST FURNACES THE FACILITY DESIGNED BY AUSTRIA'S VOESTALPINE WOULD BE THE LARGEST IN THE WORLD AND THE FIRST IN THE US IT WOULD HELP LTV TO OVERCOME ITS ENVIRONMENTAL PROBLEMS QUALITY HAS IMPROVED TOO LTV NOW SAYS IT'S THE LARGEST SUPPLIER OF FLATROLLED STEEL TO THE AUTOMOTIVE APPLIANCE ELECTRICAL EQUIPMENT SERVICE CENTER AND CONSUMER DURABLE GOODS MARKETS A PARTNER WITH JAPAN'S SUMITOMO METAL INDUSTRIES LTD LTV SAYS IT'S THE ONLY STEELMAKER CERTIFIED TO SUPPLY ALL THE AUTO TRANSPLANTS IN THE US PRESIDING OVER THE NEW LTV IS THE AMIABLE HEAVYSMOKING MR HOAG A PITTSBURGH NATIVE WHO JOINED ONE OF LTV'S FORERUNNERS IN 1960 AS A SALESMAN THESE DAYS HE OFTEN ARRIVES AT WORK AT 630 AM AND SPENDS TIME JETTING ABOUT THE COUNTRY TO VISIT CUSTOMERS A PERFECTIONIST TO A FAULT AS ONE COLLEAGUE CALLS HIM MR HOAG PEPPERS HIS EXECUTIVES WITH ALMOST DAILY CALLS AND MEMOS SEEKING INFORMATION ABOUT THEIR BUSINESSES HIS FAVORITE SAYING THE DEVIL IS IN THE DETAILS HE'S VERY DEMANDING AND IMPATIENT BUT PEOPLE LIKE TO WORK WITH HIM SAYS ONE SENIOR EXECUTIVE YOU EITHER HAVE THE ANALYSIS DONE TO THE DOLLAR OR YOU DO IT AGAIN BUT DESPITE THESE EFFORTS IT'S NOT CLEAR HOW WELL AND FOR HOW LONG LTV CAN STAND ON ITS OWN THE COMPANY HAS SOME OF THE MOST MODERN FACILITIES AND IT'S PROBABLY THE BEST IN THE US AS FAR AS QUALITY SAYS CHRISS STREET A CORONA DEL MAR CALIF ADVISER TO LTV'S CREDITORS BUT IT'S NOT CLEAR YET WHETHER THE CASH SPENT HAS RESULTED IN PEOPLE WILLING TO PAY HIGHER PRICES FOR LTV'S STEEL THE STEEL INDUSTRY IS STILL A COMMODITY INDUSTRY THE COMPANY'S OWN FORECASTS ARE LESS THAN ROBUST IT PROJECTS A LOSS OF 52 MILLION IN 1994 AND PROFITS OF 14 MILLION IN 1995 AND 24 MILLION IN 1996 TRANSLATING TO UNDER 1 A SHARE THAT DOESN'T LOOK LIKE A BARGAIN SAYS CHARLES A BRADFORD OF UBS SECURITIES REACHING EVEN THESE MODEST NUMBERS WILL REQUIRE A 24 TO 29 IMPROVEMENT IN PRICES EACH YEAR PRICES ARE FIRMING NOW AND MR HOAG SAYS THERE'S SOME CHANCE OF A FOURTHQUARTER PRICE INCREASE THE FOURTH THIS YEAR BUT THESE ARE ONLY SPOTMARKET PRICES MORE THAN HALF OF LTV'S BUSINESS COMES FROM LONGTERM CONTRACTS AND INCREASES COULD UNRAVEL QUICKLY IF THE INDUSTRY'S TRADE CASES AGAINST FOREIGN PRODUCERS ARE KNOCKED DOWN OR IF OTHER STEELMAKERS AVOID A STRIKE WHEN RIVALS' LABOR CONTRACTS EXPIRE JULY 31 LTV'S CONTRACT EXPIRES NEXT YEAR WHILE THE GOVERNMENT PICKED UP SOME OF LTV'S PENSION OBLIGATIONS THE COMPANY WITH THREE RETIREES FOR EVERY ACTIVE WORKER STILL FACES ANNUAL COSTS OF 360 MILLION OR OVER 50 FOR EACH TON OF STEEL SHIPPED FOR PENSIONS AND HEALTH CARE THAT IS EQUIVALENT TO OVER 10 OF STEEL'S AVERAGE SELLING PRICE SOME BELIEVE LTV COULD HAVE TROUBLE MEETING THESE PAYMENTS IF THE PRICE INCREASES DON'T HOLD I THINK THE CREDITORS ARE VERY OPTIMISTIC SAYS ONE OF THOSE INVOLVED IN DRAFTING THE REORGANIZATION THEY'RE SO SICK OF BANKRUPTCY THEY WANT OUT LTV WILL FACE MORE EXPENSES TO SHUT AND REPAIR FACILITIES OVER THE NEXT SEVERAL YEARS THE COMPANY ACKNOWLEDGES ENVIRONMENTAL REGULATIONS WILL LIKELY FORCE IT TO CLOSE ITS PITTSBURGH COKE OVENS AROUND DECADE'S END IT ALSO MUST RELINE SEVERAL BLAST FURNACES AT A COST OF A COUPLE HUNDRED MILLION AND PLANS TO CLOSE ONE OF ITS FIVE BLAST FURNACES FOR GOOD WITH LOWCOST MINIMILLS CLOSING IN ON THE MARKET FOR SHEET STEEL LTV LIKE ITS BIG STEEL BRETHREN WILL ALSO HAVE TO MOVE QUICKLY TO CUT COSTS COST REDUCTIONS WILL JUST KEEP COMING MR HOAG SAYS THAT'S THE WAY THE INDUSTRY WILL SURVIVE OBSERVERS BELIEVE THE COMPANY WILL NEED TO TRIM EXPENSES AN ADDITIONAL 10 TO 15 IN THE NEXT TWO YEARS WHILE BREAKING DOWN OLD WORK RULES AND USING MORE INCENTIVE PAY THE COMPANY'S MOST RECENT CONTRACT WITH THE UNITED STEELWORKERS WON ONLY MINOR CONCESSIONS THEY'VE REALLY UPGRADED THEIR FACILITIES BUT THEY'VE GONE BACK WITH THE SAME KIND OF BLUERIBBON PACKAGE TO THE UNION THEY HAD BEFORE SAYS JAMES A TODD JR CHAIRMAN OF BIRMINGHAM STEEL CORP ONE OF THE MINIMILLS MOVING INTO THE SHEET MARKET JOHN JACOBSON WHO HEADS A SWARTHMORE PA CONSULTANCY BEARING HIS NAME BELIEVES LTV LIKE OTHER BIG STEELMAKERS NEEDS TO BOOST ITS MARGINS BY DEVELOPING NEW MARKETS AND OFFERING MORE CUSTOMER SERVICE AND STEEL PROCESSING WITH THAT AND LOWER COSTS MR JACOBSON BELIEVES THE COMPANY CAN COMPETE WITH SMALL MILLS IF NOT HOWEVER THE END WILL COME SOONER THAN THEY THINK THE 53YEAROLD MR HOAG WHO SAYS HE STILL HAS A LOT OF YEARS AT LTV DOESN'T PLAN TO STAND STILL WE HAVE BEEN GIVEN A SECOND CHANCE TO SUCCEED MR HOAG SAID IN A SPEECH THIS MONTH WE WILL DO EVERYTHING IN OUR POWER TO DO JUST THAT 9305260148 930526 TREASURY PLANS TO RAISE 525 MILLION IN CASH WITH SHORTTERM BILLS WASHINGTON THE TREASURY PLANS TO RAISE 525 MILLION IN NEW CASH WITH THE SALE TUESDAY OF ABOUT 24 BILLION IN SHORTTERM BILLS TO REDEEM 2348 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON SEPT 2 1993 AND DEC 2 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794F58 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794G73 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9305260147 930526 RETAILING DEMISE OF SEARS'S BIG BOOK SPARKS RACE BY CATALOG RETAILERS TO WIN ITS CUSTOMERS BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL SOME BETS DO PAY OFF A YEAR AGO WHEN FEW PEOPLE THOUGHT SEARS ROEBUCK & CO WOULD CLOSE ITS UNPROFITABLE CATALOG OPERATION FINGERHUT COS AND MONTGOMERY WARD & CO WAGERED THAT IT WOULD THEY EACH PUT UP 10 MILLION TO CREATE MONTGOMERY WARD DIRECT A JOINT CATALOG OPERATION THAT SELLS TO MONTGOMERY WARD'S CREDITCARD CUSTOMERS THEN IN JANUARY WHEN SEARS ANNOUNCED IT WOULD CLOSE ITS 96YEAROLD BIG BOOK THE TWO PARTNERS SPED UP AND EXPANDED THEIR EFFORT THEY TRIPLED THE SIZE OF THEIR MAILING SENDING IT TO MANY TRADITIONAL SEARS CUSTOMERS AND THEY RAN ADVERTISEMENTS WELCOMING SEARS'S CATALOG SHOPPERS AND SUPPLIERS WE CLEARLY DETERMINED THERE WAS A MARKET OPPORTUNITY OFFERED BY SEARS'S STRUGGLING CATALOG OPERATIONS SAYS MONTGOMERY WARD'S CHAIRMAN BERNARD BRENNAN HE WAS IN A POSITION TO KNOW MR BRENNAN CLOSED MONTGOMERY WARD'S FAILING CATALOG BUSINESS IN 1985 WHEN IT RANKED AMONG THE NATION'S LARGEST WITH 12 BILLION IN ANNUAL SALES AND 75 MILLION IN ANNUAL LOSSES OTHER CATALOG RETAILERS ARE ALSO CIRCLING THE CARCASS OF SEARS'S CATALOG BUSINESS SEEKING A CHUNK OF THE 33 BILLION IN SALES THAT IT GENERATED LAST YEAR WHILE TRYING TO STAY CLEAR OF ITS 175 MILLION IN LOSSES JC PENNEY CO THE DEPARTMENTSTORE CHAIN WHOSE CUSTOMERS HAVE THE MOST IN COMMON WITH SEARS'S FLOCK AND SPIEGEL INC RANK AMONG THE NOISIEST RETAILERS PITCHING SEARS'S FORMER CATALOG CUSTOMERS NOT ONE DOLLAR OF WHAT SEARS'S CUSTOMERS SPEND IS GOING TO BE LOST TO THE CATALOG BUSINESS MAINTAINS ARNOLD FISHMAN PRESIDENT OF MARKETING LOGISTICS A CATALOG AND DIRECT MARKETING CONSULTANT IN HIGHLAND PARK ILL INDEED MR FISHMAN EXPECTS THE 50 BILLIONAYEAR CATALOG INDUSTRY TO CONTINUE GROWING THOUGH PERHAPS SLIGHTLY LESS ROBUSTLY THAN IT DID IN THE 1980S WHEN SALES REGULARLY GREW BY 9 A YEAR AS TIMEPRESSED CONSUMERS BEGAN DIALING THEIR ORDERS INSTEAD OF TREKKING TO THE MALL FOR CONSUMERS THE CLOSING OF SEARS'S CATALOG SHOULD BRING NEW OFFERINGS FROM COMPANIES EAGER TO LAND THEIR ORDERS AT THE LEAST CONSUMERS SHOULD EXPECT QUICKER ORDER RESPONSE AND MORE MERCHANDISE IN STOCK BUT THERE'S A DOWNSIDE AS WELL RURAL CUSTOMERS WHO ACCOUNTED FOR ABOUT 40 OF SEARS'S CUSTOMER BASE AND DEPENDED ON THE SEARS CATALOG FOR SUCH ITEMS AS WASHERS AND DRYERS AND TOOLS MAY NOT FIND A NEARBY SOURCE FURTHER SEARS SOLD LOWERPRICED APPAREL THAN MOST REMAINING CATALOG HOUSES PRIMARILY BECAUSE ITS CUSTOMERS HAD LESS HOUSEHOLD INCOME A 1987 SEARS STUDY FOUND THAT THE MEDIAN HOUSEHOLD INCOME FOR ITS CUSTOMERS WAS 27000 COMPARED WITH THE 35000 MEDIAN FAMILY INCOME OF MORE UPSCALE SPIEGEL INC THE EASIEST WAY TO GAIN SEARS'S CATALOG BUSINESS OF COURSE WOULD BE TO OBTAIN THE RETAILER'S CUSTOMER LIST OF 30 MILLION NAMES OR EVEN BETTER THE NAMES OF THE 65 MILLION CUSTOMERS WHO ACCOUNTED FOR 80 OF THE COMPANY'S CATALOG SALES BUT SEARS ISN'T SELLING ITS LIST EVEN THOUGH NEARLY ALL OF ITS RIVALS HAVE ASKED TO BUY IT WE PLAN TO KEEP THE CUSTOMER LIST SAYS ARTHUR MARTINEZ CHAIRMAN OF SEARS'S MERCHANDISE DIVISION IT'S A VALUABLE ASSET SEARS PLANS TO TRY TO DIVERT ITS CATALOG CUSTOMERS TO OTHER CHANNELS FOR ONE THING IT IS CONVERTING 350 OF ITS 2000 FORMER CATALOG STORES SMALL SHOPS WHERE CUSTOMERS PLACED AND PICKED UP ORDERS INTO RETAIL OUTLETS THE COMPANY FIGURES THAT EFFORT WILL HELP IT RETAIN SOME 350 MILLION IN ANNUAL CATALOG SALES SEARS ALSO HOPES TO WOO ITS CATALOG CUSTOMERS INTO ITS FULLRANGE STORES AND IT'S MULLING A DIRECTMAIL OPERATION THAT WOULD SELL SELECTED PRODUCTS VIA THE RETURN TABS OF MONTHLY BILLS AND OTHER HOME MAILINGS SEARS WON'T DISCLOSE SPECIFICS OF THOSE INITIATIVES WHO WILL LAND THE SEARS CUSTOMERS THAT'S LIKELY TO DEPEND AS MUCH ON EMOTION AS ON MERCHANDISE PRICE AND SERVICE CONTENDS RICHARD GRUNSTEN PRESIDENT OF GSP MARKETING SERVICES A CHICAGO CATALOG CONSULTING CONCERN FOR MANY OF SEARS'S VETERAN CUSTOMERS HE EXPLAINS SHOPPING THE BIG BOOK EVOKED WARM CHILDHOOD MEMORIES OF PERUSING THE CATALOG SAY TO MAKE A CHRISTMAS SHOPPING LIST AS MUCH AS ANYTHING SEARS'S CUSTOMERS BOUGHT BECAUSE OF THEIR EMOTIONAL ATTACHMENT TO THE COMPANY SAYS MR GRUNSTEN THE CHALLENGE IS REPLACING THAT EMOTIONAL ATTACHMENT INDUSTRY OBSERVERS CONSIDER JC PENNEY THE ODDSON FAVORITE TO WIN THE LARGEST CHUNK OF SEARS'S BUSINESS IT IS THE ONLY RETAILER WHOSE CATALOG SIZE AND OFFERINGS BEGIN TO RIVAL THOSE OF SEARS PENNEY GENERATED 317 BILLION IN CATALOG SALES LAST YEAR AND ITS CUSTOMER PROFILE IS SIMILAR TO SEARS'S WITH A NEARLY IDENTICAL FAMILY INCOME WHAT'S MORE SAYS PENNEY TWO OF ITS FIVE CUSTOMERS ALSO BOUGHT FROM THE SEARS BOOK PENNEY HOWEVER IS WARY OF COMPARING ITSELF TO SEARS PRIMARILY BECAUSE OF SEARS'S FALTERING IMAGE THE RETAILER DOESN'T MENTION SEARS IN ITS LATEST CATALOG ADVERTISING CAMPAIGN ALTHOUGH IT DOES NOTE THAT PENNEY NOW ACCEPTS THE DISCOVER CARD WHICH IS OWNED BY DEAN WITTER THE SEARS UNIT BEING SPUN OFF PENNEY'S LATEST CAMPAIGN IS ENTITLED GROWING CHANGING STAYING AN OBLIQUE WAY OF INDICATING THAT PENNEY IS READY TO SERVE SEARS'S CUSTOMER AND THAT ITS CATALOG WILL BE AROUND FOR AWHILE WHAT'S MORE PENNEY DOESN'T INTEND TO FILL THE ENTIRE SEARS VOID SINCE IT DUMPED TRADITIONAL SEARS CATALOG LINES LIKE HARDWARE AND LARGE APPLIANCES MORE THAN A DECADE AGO TO FOCUS ON APPAREL AND HOUSEHOLD FURNISHINGS MEANWHILE MONTGOMERY WARD DIRECT THE FINGERHUTMONTGOMERY WARD CATALOG OPERATION IS STEPPING UP ITS EFFORT BY EXPANDING ITS CATALOG'S PRODUCT LINES AND DISTRIBUTION ITS LATEST BOOK HAS 160 PAGES MORE THAN TWICE THE NUMBER OF ITS PREDECESSORS AND CARRIES MORE CATEGORIES OF GOODS THAN PRIOR ISSUES INCLUDING TOOLS AND AUTOMOTIVE PRODUCTS MONTGOMERY WARD HAS STARTED CIRCULATING THE CATALOGS THROUGH MOST OF ITS STORES THE VENTURE WILL PROBABLY ACHIEVE ITS FIRSTYEAR SALES TARGET OF 100 MILLION SAYS MR BRENNAN IT CLEARLY IS ON THE ROAD TO BEING A VERY PROFITABLE BUSINESS HE ADDS MONTGOMERY WARD'S PARTNER FINGERHUT IS INSERTING 40 MILLION SUPPLEMENTS IN SUNDAY NEWSPAPERS THAT SAY FINGERHUT EXTENDS A WARM WELCOME TO SEARS CATALOG CUSTOMERS AND IS OFFERING FREE CATALOGS AND THE MINNETONKA MINN COMPANY HAS INVITED SEARS'S CATALOG VENDORS TO SELL TO IT TOO FINGERHUT A 161 BILLION CONCERN THAT MAILS 300 MILLION CATALOGS ANNUALLY COVERING A BROAD RANGE OF PRODUCTS IS PERHAPS THE MOST AGGRESSIVE COMPANY PURSUING SEARS CUSTOMERS ITS CHAIRMAN THEODORE DEIKEL CALLS SEARS'S EXIT FROM THE CATALOG BUSINESS AN OPPORTUNITY THAT FITS FINGERHUT UNIQUELY SPIEGEL WITH ANNUAL CATALOG SALES OF 132 BILLION IS TARGETING SEARS'S HOME FURNISHINGS CUSTOMERS THROUGH MAGAZINES FAVORED BY WOMEN SUCH AS GOOD HOUSEKEEPING AND BETTER HOMES & GARDENS THE IDEA IS TO CAPTURE THE HOME FASHIONS CUSTOMER WHO IS A TRIEDANDTRUE CATALOG BUYER EXPLAINS A SPIEGEL SPOKESWOMAN SO FAR THOUGH THE COMPANY ISN'T TRYING TO ATTRACT SEARS'S APPAREL CUSTOMERS WE DON'T SEE MUCH OVERLAP IN APPAREL SHE SAYS NOT ALL CATALOG COMPANIES ARE RUSHING AFTER SEARS'S SALES LANDS' END INC OF DODGEVILLE WIS SAYS ITS CUSTOMER BASE AND MERCHANDISE OFFERINGS OF BASIC CLOTHING AND HOME FURNISHINGS APPEAL TO HIGHERINCOME PEOPLE THAN SEARS'S TYPICAL CUSTOMER WE LOOK AT OUR CUSTOMER AS BEING IN THE TOP QUARTILE DEMOGRAPHICALLY A SPOKESWOMAN SAYS AND SEARS IS MUCH LOWER THAN THAT 9305260146 930526 TECHNOLOGY & HEALTH PROSTATE SURGERY IS INCREASING SHARPLY EVEN THOUGH BENEFITS ARE QUESTIONED BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL SURGERY AS A TREATMENT FOR PROSTATE CANCER INCREASED NEARLY SIXFOLD IN THE US BETWEEN 1984 AND 1990 DESPITE SCANT EVIDENCE THAT THE PROCEDURE PROVIDES CLEAR BENEFIT FOR MANY MEN NEW RESEARCH SHOWS INDEED RESEARCHERS SAID THAT IN MANY CASES WHERE THE CANCER IS CONFINED TO THE PROSTATE GLAND ESPECIALLY IN OLDER MEN SIMPLY MONITORING SYMPTOMS AND THE PROGRESS OF DISEASE IS A REASONABLE ALTERNATIVE TO SURGERY OR RADIATION TREATMENTS WE HAVE NO EVIDENCE WHATSOEVER THAT ONE TREATMENT IS BETTER THAN ANOTHER SAID JOHN H WASSON A MEMBER OF A SCIENTIFIC GROUP BASED AT DARTMOUTH MEDICAL SCHOOL HANOVER NH THAT IS PUBLISHING THREE REPORTS TODAY ON PROSTATE CANCER AT THE SAME TIME SURGERY AND RADIATION CAN RESULT IN COMPLICATIONS SUCH AS IMPOTENCE OR INCONTINENCE THAT CAN HARM A PERSON'S QUALITY OF LIFE FOR MEN OVER 70 YEARS OLD OR WITH TUMORS THAT APPEAR TO BE SLOWGROWING DR WASSON SAID THE HARMS OF SURGERY ARE MORE LIKELY TO OUTWEIGH THE BENEFITS THE REPORTS REFLECT UNCERTAINTY AND WIDE VARIATION IN THE TREATMENT OF PROSTATE CANCER WHICH KILLS ABOUT 35000 MEN A YEAR THE SECONDLEADING CAUSE OF CANCER DEATHS AMONG MEN AFTER LUNG CANCER THEY ALSO UNDERSCORE THE QUANDARY PHYSICIANS AND PATIENTS FACE IN DECIDING HOW TO TREAT PROSTATE CANCER ABOUT 165000 MEN PROBABLY WILL BE DIAGNOSED WITH THE DISEASE THIS YEAR THE ISSUE HAS BEEN HEIGHTENED IN THE PAST THREE YEARS WITH GROWING USE OF A SOCALLED PSA DIAGNOSTIC TEST THAT ENABLES DOCTORS TO DETECT THE DISEASE AT AN EARLIER PRESUMABLY MORE TREATABLE STAGE WHAT DOES THE UROLOGIST DO TODAY WHEN YOU DO THE PSA TEST YOU DO THE BIOPSY AND YOU FIND A MALIGNANCY ASKS H LOGAN HOLTGREWE A UROLOGIST IN BALTIMORE WHO JUST COMPLETED A TERM AS PRESIDENT OF THE AMERICAN UROLOGICAL ASSOCIATION DO YOU WATCH AND DO NOTHING THE PROBLEM IS THAT IN MANY CASES PROSTATE CANCER IS LATENT OR SLOW TO DEVELOP AND DOCTORS OFTEN DON'T KNOW JUST FROM FINDING THE DISEASE WHICH TUMORS ARE KILLERS AND OUGHT TO BE TREATED IT'S PURE DILEMMA SAID JOHN E WENNBERG LEADER OF THE DARTMOUTHBASED RESEARCH TEAM AND A PIONEER OF RESEARCH INTO VARIATION OF MEDICAL PRACTICE IT'S A CLASSIC TRADEOFF IN WHICH THE PATIENT'S VALUES NEED TO BE CENTRALLY INVOLVED IN THE TREATMENT DECISION IN ONE OF THE STUDIES BASED ON MORE THAN 10000 RADICAL PROSTATECTOMIES PERFORMED ON MEDICARE PATIENTS THE RESEARCHERS FOUND THE RATE OF SURGERY PER 100000 MALE MEDICARE BENEFICIARIES WAS 575 TIMES HIGHER IN 1990 THAN IN 1984 THE RATE OF INCREASE WAS FOUND EVEN AMONG PATIENTS BETWEEN 75 AND 79 YEARS OLD A FINDING DR WASSON CALLED DISCONCERTING BECAUSE THE OLDER THE PATIENT THE GREATER THE RISK OF DEATH AND COMPLICATIONS FROM SURGERY WHILE POTENTIAL LIFEPROLONGING BENEFITS ARE NEGLIGIBLE AT THE SAME TIME THE RATE OF SURGERY VARIED FROM ABOUT 60 PER 100000 IN NEW ENGLAND AND THE MIDATLANTIC STATES TO MORE THAN 150 PER 100000 IN THE PACIFIC NORTHWEST INDEED THE RATE WAS 327 IN WASHINGTON STATE AND 429 IN ALASKA GRACE L LUYAO OF DARTMOUTH WAS THE LEAD AUTHOR OF THE REPORT A SECOND REPORT WAS BASED ON A MATHEMATICAL MODEL FOR ASSESSING RISKS AND BENEFITS OF SURGERY SOCALLED EXTERNALBEAM RADIATION AND WHAT RESEARCHERS CALLED WATCHFUL WAITING IT FOUND THAT UNDER OPTIMISTIC ASSUMPTIONS ABOUT TREATMENT EFFECTIVENESS PATIENTS 60 TO 65 YEARS OLD WITH UNSTABLE TUMORS WOULD BENEFIT FROM SURGERY OR RADIATION COMPARED WITH MONITORING SYMPTOMS BUT IN MOST OTHER CASES AGGRESSIVE TREATMENT OFFERED AT BEST LESS THAN A ONEYEAR GAIN IN SURVIVAL BENEFIT LEAD AUTHOR OF THE SECOND REPORT WAS CRAIG FLEMING OF OREGON HEALTH SCIENCES UNIVERSITY PORTLAND BOTH APPEAR IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION A THIRD REPORT APPEARS IN THE MAY VOLUME OF ARCHIVES OF FAMILY MEDICINE THE RESEARCH WAS FUNDED BY THE US AGENCY FOR HEALTH CARE POLICY AND RESEARCH 9305260145 930526 MARKETING & MEDIA TIME WARNER'S HBO EN ESPANOL NEW YORK TIME WARNER INC'S HOME BOX OFFICE SAID IT WOULD LAUNCH IN OCTOBER A SPANISHLANGUAGE VERSION OF THE PAY CHANNEL FOR US VIEWERS DUBBED HBO EN ESPANOL THE NEW SERVICE WHICH FOLLOWS SIMILAR MOVES BY OTHER CABLE NETWORKS TO WOO HISPANICS IN THE US WILL AIR THE SAME PROGRAMMING AS THE REGULAR HBO NETWORK IN MAJOR LATINO MARKETS HBO EN ESPANOL WHICH REPLACES AN EARLIER SPANISHLANGUAGE HBO VENTURE CALLED SELECCIONES IS SEPARATE FROM HBO OLE THE NETWORK'S SPANISHLANGUAGE CHANNEL IN LATIN AMERICA 9305260144 930526 YIELDS ON MOST CDS ADVANCED LAST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE MOSTLY UP IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS INCHED UP TO 267 FROM 265 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS REMAINED AT 478 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS CREPT UP TO 313 FROM 310 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD CLIMBED TO 526 FROM 515 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE ADVANCED TO 277 FROM 271 ON FIVEYEAR JUMBOS THE AVERAGE ROSE TO 498 FROM 492 ACCORDING TO BANXQUOTE 9305260143 930526 STRUCTURAL DYNAMICS RESEARCH MILFORD OHIO STRUCTURAL DYNAMICS RESEARCH CORP SAID IT REACHED A DISTRIBUTION AGREEMENT FOR ENGINEERING DESIGN AND MANUFACTURING SOFTWARE WITH SIEMENS NIXDORF INFORMATIONSSYSTEME AG A UNIT OF SIEMENS AG THE AUTOMATION SOFTWARE AND ENGINEERING SERVICES CONCERN SAID THE GERMAN COMPANY WILL DISTRIBUTE ITS IDEAS SOFTWARE AND STRUCTURAL DYNAMICS WILL DISTRIBUTE SIEMENS'S SIGRAPH PRODUCT STRUCTURAL DYNAMICS SAID IT WOULD BE A PREFERRED SUPPLIER TO SIEMENS AND WOULD SEEK FURTHER COOPERATION 9305260142 930526 MCGRAWHILL ACQUISITION NEW YORK MCGRAWHILL INC SAID IT ACQUIRED THE ASSETS OF BLACK LETTER LEGAL SOFTWARE CORP TERMS WEREN'T DISCLOSED MCGRAWHILL SAID THE PURCHASE INCLUDES DOCUMENT MAESTRO THE DOSBASED COMPUTER SOFTWARE THAT ENABLES ATTORNEYS TO GENERATE SPECIALIZED LEGAL FORMS AND TO CUSTOMIZE INFORMATION DATABASES MANAGEMENT REPORTS AND CALCULATIONS MCGRAWHILL SAID STEVEN KURSH THE FOUNDER OF BLACK LETTER WILL BE RETAINED UNDER A CONSULTING AGREEMENT TO UPDATE AND MAINTAIN EXISTING PRODUCTS BLACK LETTER WILL BECOME PART OF THE SHEPARD'S/MCGRAWHILL LEGAL PUBLISHING UNIT 9305260141 930526 SOCIETE GENERALE TO ISSUE BONDS PARIS SOCIETE GENERALE ONE OF FRANCE'S LEADING RETAIL BANKS WILL ISSUE THREE BILLION FRANCS 5452 MILLION OF CONVERTIBLE BONDS TODAY TO HELP FINANCE THE LENDER'S DEVELOPMENT PLANS IN PRIVATE BANKING REAL ESTATE AND EQUITY INVESTMENT SOCIETE GENERALE SAID THE CONVERTIBLE BONDS WILL CARRY A UNIT PRICE OF 660 FRANCS AND CARRY AN INTEREST RATE OF 35 THE BONDS WILL BE REIMBURSABLE JAN 1 2000 AT 800 FRANCS GUARANTEEING A MINIMUM YIELD OF 62 AT ANY TIME BOND HOLDERS CAN CONVERT TO SOCIETE GENERALE SHARES AT A ONEFORONE RATE CURRENT SOCIETE GENERALE SHAREHOLDERS WILL HAVE PRIORITY SUBSCRIPTION RIGHTS FROM MAY 26 TO JUNE 4 AND WILL BE ABLE TO PURCHASE ONE BOND FOR EVERY 25 SHARES THEY CURRENTLY HOLD 9305260140 930526 OFF TO SOUTH AFRICA AS US FIRMS RETURN TO LAND OF APARTHEID LOTUS FEELS ITS WAY BUSINESS THERE ISN'T AS USUAL BUT DIGITAL EQUIPMENT JOINS RUSH TO INVEST TOO BARRING GUNS AT THE OFFICE BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL DIGITAL'S ANNOUNCEMENT COMES AS THE CLINTON ADMINISTRATION IS PREPARING TO LIFT ALL REMAINING ECONOMIC SANCTIONS AGAINST SOUTH AFRICA MAYBE AS SOON AS NEXT MONTH IN ANTICIPATION OF THE PRETORIA GOVERNMENT SETTING A DATE FOR FREE MULTIRACIAL ELECTIONS IN THAT COUNTRY SUCH ACTION WOULD WORK TO ACCELERATE THE RETURN OF US COMPANIES TO SOUTH AFRICA BUT EVEN WITH THE DAWN OF A FREE SOCIETY PERHAPS CLOSE AT HAND THE DIFFICULTIES OF DOING BUSINESS HERE REMAIN IT WASN'T MORE THAN A YEAR AGO THAT LOTUS BECAME THE FIRST US COMPANY TO SET UP SHOP HERE AFTER PRESIDENT BUSH LIFTED THE BAN ON NEW US INVESTMENT IN SOUTH AFRICA SINCE THEN LOTUS HAS BEEN DEALING WITH WHITE EMPLOYEES WHO CARRY HANDGUNS TO WORK BLACK EMPLOYEES WHO RISK THEIR LIVES GETTING TO WORK AND WHITES WHO RESIST WORKING TOGETHER WITH BLACKS THEN THERE IS THE ECONOMY WHICH IS SICK THE BUREAUCRACIES IT TAKES WEEKS TO GET A PHONE AND POLITICAL AND ETHNIC VIOLENCE AN EMPLOYEE'S LUNCH WITH A CLIENT WAS INTERRUPTED BY GUNFIRE AND FINALLY THERE IS THE MORAL DILEMMA OF SUPPORTING A SOCIETY THAT THOUGH IT HAS ABOLISHED APARTHEID LAWS STILL DENIES SUFFRAGE TO ITS 26 MILLION NONWHITES OR 83 OF THE POPULATION FOR LOTUS THE DECISION TO OPEN A MARKETING OFFICE HERE IGNITED PASSIONATE PROTESTS FROM ITS CAMBRIDGE MASS HEADQUARTERS STAFF LOTUS'S SOUTH AFRICAN VENTURE HASN'T BEEN ALL PAIN AND NO GAIN IN ADDITION TO BUILDING A MODEST SALES BASE THE COMPANY HAS MANAGED TO BUILD UNDERSTANDING AND RESPECT BETWEEN ITS WHITE AND BLACK EMPLOYEES HERE AND GET THEM TO WORK AS A TEAM WHICH RARELY OCCURS IN THIS COUNTRY STILL SOUTH AFRICA REMAINS A VERY DIFFICULT PLACE IN WHICH TO OPERATE WHICH LOTUS'S LOCAL MANAGING DIRECTOR JOHN O'HARA READILY CONCEDES THIS IS A DIFFERENT WAY OF DOING BUSINESS HE SAYS WHILE HUNDREDS OF US EXECUTIVES HAVE VISITED THIS COUNTRY TO EXPLORE POSSIBLE VENTURES SINCE MOST SANCTIONS ENDED IN JULY 1991 MANY HAVE RETURNED HOME DISCOURAGED STILL BEFORE DIGITAL'S DECISION YESTERDAY 20 COMPANIES HAD CHOSEN TO ESTABLISH SOME TYPE OF BUSINESS LINK HERE ACCORDING TO THE INVESTOR RESPONSIBILITY RESEARCH CENTER IN WASHINGTON DIGITAL IN EXPLAINING ITS DECISION ESTIMATED THE VALUE OF SOUTH AFRICA'S INFORMATION TECHNOLOGY MARKET AT 17 BILLION A YEAR MAKING IT THE LARGEST INTERNATIONAL MARKET WHERE THE COMPANY HAD NO PRESENCE WE'RE COMING INTO THIS MARKET WITH THE INTENT OF BEING A IF NOT THE MARKET LEADER SAYS VIKKEE LOVE DIGITAL'S MARKETING AND DEVELOPMENT MANAGER IN THE REGION THE COMPANY SAYS IT WILL HIRE ABOUT 50 SOUTH AFRICANS HERE AND TRANSFER IN A FEW OTHER EMPLOYEES DESPITE THE BUSINESS POTENTIAL MANY COMPANIES STILL DEEM THIS COUNTRY AS TOO RISKY A PLACE INVESTORS ARE A LITTLE WARY TO PUT THEIR MONEY WHERE THEIR HEARTS ARE UNTIL THEY'RE SURE OF STABILITY SAYS LESTER DE VILLIERS A SOUTH AFRICAN CONSULTANT TO US COMPANIES SARA LEE CORP FOR ONE SEES GREAT POTENTIAL IN SOUTH AFRICA SAYS A SENIOR EXECUTIVE FOLLOWING A VISIT HERE BUT HE SAYS WE ARE AMBIVALENT MANY AMERICAN COMPANIES ARE WAITING UNTIL SOUTH AFRICA REACHES AGREEMENTS WITH THE INTERNATIONAL MONETARY FUND AND THE LIFTING OF REMAINING US ECONOMIC SANCTIONS AGAINST THE COUNTRY THE DISMANTLING OF SOUTH AFRICA'S 45YEAROLD SYSTEM OF APARTHEID HAS SPAWNED A MURKY AND UNPREDICTABLE BRAND OF VIOLENCE MEMBERS OF THE AFRICAN NATIONAL CONGRESS THE MAIN ANTIAPARTHEID GROUP AND ITS RIVAL THE INKATHA FREEDOM PARTY CLASH OVER POLITICAL DIFFERENCES WHILE AFRIKANER EXTREMISTS GOVERNMENT SECURITY FORCES AND OTHER SPOILERS CONDUCT VICIOUS ACTIVITIES THAT STIFLE THE MOVE TOWARD BLACK MAJORITY RULE LAST YEAR POLITICAL VIOLENCE CLAIMED 3500 LIVES IN SOUTH AFRICA ACCORDING TO THE AFRICA FUND A NEW YORKBASED HUMANRIGHTS GROUP MEANWHILE IN THE US MORE THAN 150 CITIES STATES AND COUNTIES STILL REFUSE TO DO BUSINESS WITH COMPANIES OPERATING IN SOUTH AFRICA THESE POLICIES MORE SO THAN THE FEDERAL SANCTIONS ARE CITED FOR THE EXODUS OF 214 US COMPANIES OR TWOTHIRDS OF THE AMERICAN BUSINESSES HERE FROM 1984 THROUGH 1991 YET DESPITE ALL OF THE PROBLEMS ASSOCIATED WITH SOUTH AFRICA IT STILL HAS THE MOST DEVELOPED ECONOMY ON THE CONTINENT AND OFFERS A PRIME POSITION FOR DOING BUSINESS THROUGHOUT SOUTHERN AFRICA LOTUS HAS OTHER REASONS FOR BEING HERE TO COMBAT A GROWING PROBLEM OF SOFTWARE PIRACY AND GRAYMARKET SALES IN THE COUNTRY LOTUS WHICH IS MOVING TO ELIMINATE SOFTWARE PIRACY SAYS IT HAS LOST MILLIONS OF DOLLARS IN POTENTIAL SALES TO THE DISTRIBUTION OF ILLEGAL COPIES OF ITS PRODUCTS HERE INCLUDING THE POPULAR LOTUS 123 SPREADSHEET PROGRAM IN 1991 THE COMPANY DETERMINED THERE WERE MORE THAN 250000 USERS OF BOOTLEG LOTUS SOFTWARE IN THE COUNTRY FOR EACH COPY OF LEGAL SOFTWARE HERE THERE WERE EIGHT PIRATED COPIES IN USE SOUTH AFRICA NOW REPRESENTS NEARLY 1 OF LOTUS'S 900 MILLION IN ANNUAL REVENUE BUT COMPANY SALES LEDGERS CAN'T BEGIN TO DESCRIBE WHAT IT IS LIKE TO DO BUSINESS HERE A LOTUS EMPLOYEE MARY JANE BERRY WAS LUNCHING AT A JOHANNESBURG RESTAURANT WITH A CLIENT WHEN GUNSHOTS RANG OUT SENDING THEM DIVING UNDER THEIR TABLE EMPLOYEES' FRIENDS AND NEIGHBORS HAVE BEEN BEATEN AND KIDNAPPED IT'S QUITE A TOPIC OF DINNER PARTIES EXCHANGING STORIES OF WHO'S BEEN MUGGED ROBBED OR KILLED SAYS LOTUS'S MR O'HARA THE MANAGING DIRECTOR RECALLS ONE DAY FINDING WHITE EMPLOYEES PASSING THEIR GUNS AROUND SHOWING THEM TO EACH OTHER IN THE OFFICE I ABSOLUTELY FREAKED OUT HE SAYS BUT FEARFUL OF BLACK REVOLT SOUTH AFRICA'S FIVE MILLION WHITES OWN 13 MILLION HANDGUNS AND OFTEN CARRY THEM ABOUT OPENLY MR O'HARA HAS SINCE BARRED HANDGUNS FROM THE OFFICE MR O'HARA ARRIVED HERE TO OPEN LOTUS'S SALES OFFICE IN DECEMBER 1991 HE PUT IT IN MORNINGSIDE A NEW JOHANNESBURG SUBURB THAT WITH SPRAWLING SALMONCOLORED STUCCO BUILDINGS AND POSH SHOPPING MALLS RESEMBLES MANY AFFLUENT COMMUNITIES IN SOUTHERN CALIFORNIA BUT HERE NEARLY EVERY YARD IS SURROUNDED BY TALL CONCRETE WALLS TOPPED WITH BARBED OR RAZOR WIRE COMMITTED TO HIRING A RACIALLY MIXED STAFF MR O'HARA SAYS HE CONTACTED TWO LOCAL RECRUITING FIRMS BUT HE SOON DISCOVERED THEY LIKE MANY PRIVATE INSTITUTIONS HERE STILL PRACTICE THEIR OWN FORM OF APARTHEID THEY DIDN'T HAVE ANY RESUMES OF BLACK JOB CANDIDATES THE STAFF THAT WAS FINALLY HIRED CONSISTS OF 10 WHITES FOUR INDIANS TWO BLACKS AND A PERSON OF MIXED RACE AT FIRST LOTUS'S WHITE EMPLOYEES WERE RELUCTANT TO HELP THEIR BLACK COLLEAGUES LEARN TO USE COMPUTERS AND WHITES COMPLAINED ABOUT BLACKS SPEAKING IN THEIR NATIVE TRIBAL LANGUAGES LOTUS HAS TAKEN STEPS TO HELP BRIDGE THE GAP EMPLOYEES HAVE BEEN SHOWN VIDEOTAPES OF EYES ON THE PRIZE THE AWARDWINNING DOCUMENTARY ABOUT THE US CIVIL RIGHTS MOVEMENT THERE ARE WHOLE CHUNKS OF HISTORY THAT SOUTH AFRICAN WHITES AND BLACKS HAVE NEVER SEEN SAYS MACKIE MCLEOD A BLACK AMERICAN WHO MOVED HERE AND NOW WORKS FOR LOTUS I WANT THEM TO SEE HOW OTHER COMMUNITIES HAVE OVERCOME RACIST REGIMES A GROUP OF WHITE EMPLOYEES SAW THE FILM VERSION OF SARAFINA STARRING WHOOPI GOLDBERG ABOUT THE 1976 SOUTH AFRICAN STUDENT UPRISING IN SOWETO THE WHITE SOUTH AFRICANS DIDN'T REALIZE IT WAS FILMED IN SOWETO THEY ASKED IF IT WAS MADE IN HOLLYWOOD SAYS MR MCLEOD I TOLD THEM IT WAS FILMED IN THEIR OWN BACKYARDS YOU SHOULD GO THERE AND VISIT SOMETIME THROUGH SUCH EFFORTS EMPLOYEES ARE STARTING TO GROW CLOSER AND TO RESPECT EACH OTHER THEY ARE BECOMING ACCUSTOMED TO WORKING WITH PEOPLE WHO HAVE A DIFFERENT PERSPECTIVE AND CULTURE SAYS MR MCLEOD THERE ARE OTHER PROBLEMS THAT HAVE NOTHING TO DO WITH RACE EVEN THOUGH THIS IS THE MOST DEVELOPED COUNTRY IN AFRICA LOCAL BUREAUCRACIES AND LAX STATERUN SERVICES MAKE SETTING UP SHOP HERE A NIGHTMARE SAYS MR O'HARA IT TOOK TWO MONTHS TO GET TELEPHONE SERVICE THREE MONTHS FOR FURNITURE TO ARRIVE AND SIX MONTHS FOR MR O'HARA'S HOME PHONE TO BE INSTALLED WORKERS WOULD START LEAVE AT LUNCHTIME COME BACK ANOTHER DAY WORK AND LEAVE AGAIN HE SAYS LOTUS LIKE OTHER FOREIGN COMPANIES SUPPORTS TRAINING AND EDUCATIONAL DEVELOPMENT PROJECTS FOR BLACK SOUTH AFRICANS LOTUS HAS BUDGETED 800000 A YEAR FOR SUCH PROGRAMS BUT DECIDING HOW BEST TO INVEST FUNDS FOR LOCAL DEVELOPMENT IS DIFFICULT AND PLANS OFTEN DON'T WORK OUT MICHAEL DURNEY THE MASSACHUSETTSBASED HEAD OF LOTUS'S PHILANTHROPY AND COMMUNITYAFFAIRS PROGRAMS VISITED BLACK TOWNSHIPS IN THE MOUNTAINOUS WESTERN CAPE PROVINCE TO HELP DEVELOP COMPUTERLITERACY PROGRAMS IN SCHOOLS WHAT HE FOUND WAS THAT SOME SCHOOLS DIDN'T EVEN HAVE ELECTRICITY IN ONE TOWNSHIP OF 220000 PEOPLE THERE WAS ONE TYPEWRITER LOTUS PROVIDES FUNDS AND ASSISTANCE TO 12 COMPUTERTRAINING CENTERS BUT HIGH LEASE COSTS ARE A PROBLEM AS ARE LEAKING ROOFS VANDALISM THEFT AND THUGS OR TSOTSIS AS THEY ARE CALLED IN THE TOWNSHIPS WHO SOMETIMES SCARE AWAY PEOPLE WHO ARE SEEKING TRAINING IN MANENBERG A WESTERN CAPE TOWNSHIP RIFE WITH GANG VIOLENCE AND DRUGS THE COMPUTER CENTER IS IN A ROOM PROTECTED BY JAILLIKE BARS THE CENTER'S DIRECTOR IDENTIFIES HIMSELF ONLY AS PARKER SAYING HE FEARS POLITICAL REPRISAL BUT RESIDENTS OF BLACK TOWNSHIPS ARE WILLING TO ACCEPT THE RISKS OF VIOLENCE TO GET JOB TRAINING MOISA MOGAJANE WHO RECENTLY COMPLETED AN INTERNSHIP AS A LOTUS COMPUTER TRAINEE HAD TO COMMUTE TO HIS INTERNSHIP HERE FROM HIS HOME IN AN OUTLYING TOWNSHIP ABOARD A COMMUTER RAIL LINE KNOWN AS THE TERROR TRAIN BECAUSE OF FREQUENT ATTACKS ON PASSENGERS BY ASSAILANTS WIELDING A MACHETELIKE WEAPON CALLED A PANGA BUT AS AN INTERN THE 24YEAROLD MR MOGAJANE EARNED ABOUT 500 A MONTH THAT COMPARES WITH 259 MONTHLY FOR THE AVERAGE BLACK SOUTH AFRICAN WORKER AND 1559 FOR THE TYPICAL WHITE WORKER MR MOGAJANE NOW WORKS FOR A LOTUS DISTRIBUTOR FOR LOTUS COMING TO DO BUSINESS IN SOUTH AFRICA HAS BEEN A LONG JOURNEY IN 1985 THE COMPANY SET A POLICY AGAINST DOING BUSINESS HERE AS LONG AS RACIAL SEPARATISM EXISTED REFLECTING THE POLITICS OF MANY COMPANY OFFICIALS BUT FOLLOWING THE ABOLITION OF APARTHEID LAWS IN 1991 AND PRESIDENT BUSH'S SUBSEQUENT LIFTING OF THE US BAN LOTUS DECIDED TO REVERSE ITS POLICY THAT DECISION HOWEVER IGNITED PROTESTS AMONG ITS OWN MANAGERS AT COMPANY HEADQUARTERS SOME EXECUTIVES WERE ANGRY THAT THEY HADN'T BEEN CONSULTED BEFORE THE DECISION WAS MADE MR DURNEY THE COMMUNITYAFFAIRS EXECUTIVE LEARNED OF THE MOVE WHEN SOMEONE OUTSIDE THE COMPANY TOLD HIM A PRESS CONFERENCE ANNOUNCING IT WAS BEING PLANNED MR DURNEY IMMEDIATELY TELEPHONED ANOTHER COMMUNITYAFFAIRS MANAGER AT LOTUS JOYCE WILLIAMSMITCHELL WHO WAS ALSO STUNNED BY THE NEWS HE CALLED AND SAID JOYCE YOU WILL NOT BELIEVE THIS' MS WILLIAMSMITCHELL RECALLS MS WILLIAMSMITCHELL SAYS SHE AND MR DURNEY PERSUADED ROBERT SCHECTER LOTUS'S SENIOR VICE PRESIDENT FOR INTERNATIONAL DEVELOPMENT AND A KEY DECISION MAKER IN THE MOVE TO DELAY THE PRESS CONFERENCE MR SCHECTER DENIES THAT TOP MANAGEMENT HAD MADE ITS DECISION ON SOUTH AFRICA BEFORE MEETING WITH THE PUBLICAFFAIRS EXECUTIVES AS WORD OF THE COMPANY'S PLANS SPREAD AMONG LOTUS'S 2000 HEADQUARTERS EMPLOYEES CHAIRMAN JIM MANZI WAS DELUGED WITH MESSAGES OF PROTESTS THROUGH THE INTEROFFICE ELECTRONICMAIL SYSTEM ONE EMPLOYEE SPOKE OF LEADING PICKETS AGAINST THE COMPANY MR SCHECTER EVEN FACED CRITICISM AT HOME WHY DO YOU HAVE TO DO THIS IMPLORED HIS 13YEAROLD SON BRIAN IN ITS DEFENSE LOTUS MAINTAINED THAT IT MADE ITS DECISION WITH THE BLESSING OF OFFICIALS OF THE ANC ANTIAPARTHEID GROUP THOUGH THE ANC OFFICIALLY OPPOSES FOREIGN INVESTMENT IN SOUTH AFRICA UNTIL THE GOVERNMENT YIELDS TO A SYSTEM OF MAJORITY RULE MR SCHECTER SAYS THAT IN PRIVATE DISCUSSIONS ANC OFFICIALS ENCOURAGED LOTUS TO COME CITING A NEED TO RESTORE THE ECONOMY AND CREATE JOBS THE PEOPLE WE CONSULTED WITH WERE ACTUALLY ENCOURAGING US TO PROCEED SAYS MR SCHECTER ANC OFFICIALS REFUSE TO ACKNOWLEDGE SUCH DISCUSSIONS TOOK PLACE IN THE FIRST EXCEPTION TO ITS POLICY THE ANC YESTERDAY GAVE ITS OFFICIAL APPROVAL TO DIGITAL'S DECISION TO OPEN A SUBSIDIARY IN SOUTH AFRICA BUT ADDED THAT IT STILL OPPOSES OTHER FOREIGN INVESTMENT IN THE COUNTRY DIGITAL SAYS IT HAS AUTHORIZED A SOUTH AFRICAN COMPANY FINANCED BY A FIRM ALIGNED WITH THE ANC TO RESELL ITS PRODUCTS TO HELP SELL ITS DECISION INTERNALLY LOTUS SENT MR DURNEY AND MS WILLIAMSMITCHELL TO SOUTH AFRICA TO SEE HOW THE COMPANY COULD SUPPORT LOCAL COMPUTER LITERACY TRAINING AND ECONOMIC DEVELOPMENT PROJECTS BUT MS WILLIAMSMITCHELL SAYS SHE RETURNED STILL ANGERED OVER HOW LOTUS HANDLED ITS DECISION TO GO INTO SOUTH AFRICA AND RESIGNED FROM THE COMPANY OVER THE MATTER I FELT THAT LOTUS WAS NOT BEING HONEST WITH EMPLOYEES I FELT THERE WERE ISSUES OF GREED SHE SAYS SO ON OCT 23 1991 LOTUS DISCLOSED IT WOULD BECOME THE FIRST COMPANY TO ENTER SOUTH AFRICA SINCE THE END OF US SANCTIONS THE CONTINUATION OF SANCTIONS WOULD DO MORE HARM THAN GOOD THE COMPANY SAID LOTUS PROMISED TO PROVIDE TECHNICAL SKILLS AND CREATE JOBS WITHIN THE BLACK COMMUNITY THE REACTION WAS IMMEDIATE IRATE LOTUS SHAREHOLDERS PHONED THE COMPANY'S HEADQUARTERS MANY STATE AND MUNICIPAL FUND MANAGERS WHO WERE PROHIBITED FROM INVESTING IN COMPANIES WITH BUSINESS IN SOUTH AFRICA BEGAN SELLING THEIR LOTUS SHARES IN THE INTERVENING MONTHS THERE HAVE BEEN OTHER DEVELOPMENTS IN LOTUS'S JOHANNESBURG OFFICE BRENDA NGCABA A FORMER ANC GUERRILLA RECENTLY COMPLETED A SIXMONTH INTERNSHIP AND NOW WORKS AS A PROGRAMMER FOR THE FORD FOUNDATION HERE SHE RECALLS THAT THE FRICTION SHE INITIALLY FELT FROM HER WHITE SOUTH AFRICAN COLLEAGUES AT LOTUS EVENTUALLY GAVE WAY TO WARMER MORE RESPECTFUL FEELINGS SAYS MS NGCABA THEY REALLY KNOW THAT THE FUTURE IS OURS 9305260139 930526 WHO'S NEWS HERO NAMES BOGNER PRESIDENT NEW YORK ALLAN R BOGNER 54 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF APPAREL MAKER HERO GROUP LTD HERBERT ROUNICK WHO GIVES UP THE PRESIDENT'S POST REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE IS 63 YEARS OLD MR BOGNER IS A FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LOEHMANN'S INC WHICH HE LEFT IN MARCH 1992 THE ADDITION OF MR BOGNER WILL ENHANCE THE DEPTH AND MANAGEMENT EXPERIENCE OF THE COMPANY MR ROUNICK SAID HERO PRODUCES WOMEN'S APPAREL UNDER PRIVATE PROPRIETARY AND LICENSED DESIGNER LABELS INCLUDING OLEG CASSINI BILL BLASS BOB MACKIE BOUTIQUE JG HOOK AND OSCAR DE LA RENTA STUDIO 9305260138 930526 CYPRUS AGREES TO BUY AMAX IN STOCK PACT DEAL VALUED AT 1 BILLION TO 14 BILLION CREATES POWERHOUSE IN MINING BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL DENVER CYPRUS MINERALS CO SAID IT AGREED DEFINITIVELY TO ACQUIRE AMAX INC FOR BETWEEN 1 BILLION AND 14 BILLION IN STOCK CREATING A MINING POWERHOUSE THAT WILL BE THE NATION'S SECONDLARGEST PRODUCER OF BOTH COAL AND COPPER AND THE LARGEST MOLYBDENUM PRODUCER AS PART OF THE DEAL THE COMPANIES ALSO AGREED TO SPIN OFF AMAX'S ALUMAX UNIT TO AMAX SHAREHOLDERS AS A SEPARATE ALUMINUM COMPANY AND TO GIVE THEM 28 OF AMAX GOLD INC STOCK AMAX CURRENTLY HOLDS ABOUT 68 OF THE GOLD UNIT'S COMMON SHARES THE REST IS PUBLICLY HELD UNDER THE TERMS OF THE PACT AMAX SHAREHOLDERS WILL RECEIVE ONEHALF OF A CYPRUS SHARE FOR EACH AMAX SHARE IF THE CYPRUS SHARE PRICE STAYS BETWEEN 24 AND 32 TWO FORMULAS WILL BE USED TO DETERMINE THE PRICE IF CYPRUS SHARES VARY FROM THAT TRADING RANGE AMAX HAS ABOUT 879 MILLION SHARES OUTSTANDING AND CYPRUS HAS ABOUT 473 MILLION SHARES THE DEAL INCLUDES THE ASSUMPTION OF ABOUT 12 BILLION IN AMAX DEBT AND THE CONVERSION OF 220 MILLION OF AMAX PREFERRED STOCK TO PREFERRED IN THE NEW COMPANY CYPRUSAMAX AS THE COMPANY WILL BE KNOWN WILL HAVE 5 BILLION IN ASSETS AND DEBT OF ABOUT 155 BILLION OR 40 OF CAPITALIZATION AFTER THE ANNOUNCEMENT YESTERDAY AMAX SHARES SOARED 4125 TO 2275 CYPRUS FELL 1 TO 26625 AND AMAX GOLD CLOSED UNCHANGED AT 8625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING JOEL PRICE AN ANALYST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP SAID HE EXPECTED CYPRUS STOCK TO DECLINE BECAUSE THE TERMS OF THE DEAL INDICATE CYPRUS IS PAYING A PREMIUM FOR SHARES OF NEW YORKBASED AMAX MOST ANALYSTS EMBRACED THE DEAL THIS IS ONE OF THE GREATEST MINING MERGERS OF ALL TIME SAID MR PRICE THE DEAL WILL ALLOW CYPRUS CHAIRMAN MILTON WARD TO ACCOMPLISH HIS GOAL OF INCREASING THE COMPANY'S COAL BUSINESS WHILE PROVIDING THE STEADY CASH FLOW TO REACH HIS OTHER GOAL BUILDING UP THE COMPANY'S COPPER BUSINESS MR PRICE SAID OTHERS WEREN'T AS POSITIVE I JUST DON'T SEE THE SYNERGIES GAINED IN COMBINING THE TWO COMPANIES SAID KENNETH FREIDMAN ANALYST AT NONLINEAR RESOURCE CORP IN BOULDER COLO BUT HE SAID THE DEAL MAKES SENSE FOR AMAX SHAREHOLDERS BECAUSE THE PARTS ARE WORTH MORE THAN THE WHOLE IN ADDITION THE DEAL WILL INCREASE THE LIQUIDITY OF AMAX GOLD SHARES HE SAID MR WARD SAID THE PLANNED MERGER OF OPERATIONS SHOULD REDUCE MINING COSTS OF THE TWO COMPANIES BY 100 MILLION A YEAR AND THOSE SAVINGS SHOULD BE REALIZED IN THE FIRST YEAR HE DECLINED TO SPECIFY WHERE THOSE SAVINGS WOULD BE FOUND THE NEW COMPANY WILL BE BASED IN DENVER WHERE CYPRUS HAS ITS HEADQUARTERS THE DEAL GOES SOME DISTANCE TOWARD FULFILLING THE GOALS THAT MR WARD LAID OUT FOR HIS COMPANY IN THE PAST FEW MONTHS THE ACQUISITION WILL INCREASE CYPRUS'S COAL PRODUCTION FROM ABOUT 20 MILLION TONS A YEAR TO ABOUT 70 MILLION TONS INCLUDING A COUPLE OF SMALLER ACQUISITIONS THE COMPANY ALREADY HAS IN PROCESS THE STEADY COAL INCOME FROM AMAX'S LONGTERM COAL CONTRACTS WILL EVEN OUT THE IMPACT THAT ROLLERCOASTER COPPER PRICES HAVE ON EARNINGS MR PRICE SAID THE CASH FLOW FROM COAL ALSO WILL HELP MR WARD FUND THE EXPLORATION AND DEVELOPMENT HE NEEDS TO INCREASE THE COMPANY'S COPPER PRODUCTION ABOUT 50 TO 1 BILLION POUNDS A YEAR AS HE HAS SAID HE WANTS TO DO CYPRUS IS CURRENTLY SPENDING ABOUT 200 MILLION ON A MODERNIZATION AND EXPANSION PROGRAM AT ITS COPPER MINES BUT NEEDS NEW RESERVES AND NEW WORLDCLASS MINES THE DEAL ALSO GIVES CYPRUS A POSITION IN A MAJOR GOLD PRODUCER THROUGH A 40 STAKE IN AMAX GOLD CYPRUS WOULD HAVE LIKED TO ACQUIRE ALL AMAX'S SHARES OF THE GOLD UNIT BUT IT WAS TOO EXPENSIVE TO DO MR WARD SAID HOWEVER HE LEFT THE DOOR OPEN FOR INCREASING CYPRUS'S STAKE IN AMAX GOLD SAYING HE WILL OFFER SOME OF CYPRUS'S GOLD EXPLORATION PROJECTS TO AMAX GOLD PERHAPS IN RETURN FOR MORE STOCK AS WE INTRODUCE THE CYPRUS PROPERTIES INTO AMAX GOLD WE'RE GOING TO TRY TO RAISE OUR INTEREST IN IT HE SAID IN AN INTERVIEW AMAX'S OIL AND NATURAL GAS RESERVES WHICH COME ALONG WITH THE ACQUISITION WEREN'T PART OF MR WARD'S STRATEGY AND THEIR FATE INSIDE CYPRUSAMAX IS UNCERTAIN IN A CONFERENCE CALL WITH ANALYSTS YESTERDAY MR WARD SAID THAT FOR THE TIME BEING HE SEES THE GAS BUSINESS AS A GOOD HEDGE AGAINST THE HUGE ENERGY BILLS THE COMPANY PAYS NOW BUT HE SAID THE NEW BOARD WILL ANALYZE WHETHER THE OIL AND GAS ASSETS SHOULD STAY OR BE SOLD TO HELP REDUCE THE COMPANY'S DEBT FOR ALUMAX THE DEAL CREATES A PURE ALUMINUM PLAY FOR SHAREHOLDERS AMAX CHAIRMAN ALLEN BORN SAID WHILE ALUMAX HAS RELATIVELY LOWCOST PRODUCTION AND A STRONG MARKET FOR ITS VALUEADDED FABRICATED PRODUCTS LOW ALUMINUM PRICES AND HIGH RAW MATERIAL PRICES HAVE SQUEEZED EARNINGS LEADING THE COMPANY TO CUT ITS SECONDQUARTER DIVIDEND TO 10 CENTS A SHARE FROM 20 CENTS ALUMAX WILL KEEP ABOUT 800 MILLION IN DEBT AND ABOUT ONETHIRD OF AMAX'S PREFERRED SHARES CYPRUS AND AMAX SAID THEY EACH HAVE RECEIVED FAIRNESS OPINIONS FROM THEIR RESPECTIVE INVESTMENT BANKERS AND APPROVAL FROM THEIR BOARDS ONE STICKING POINT IS THE HEFTY SHARE OF THE NATION'S MOLYBDENUM BUSINESS THAT THE COMPANY WILL HAVE BY MERGING THE NO 1 AND NO 2 PRODUCERS OF THE METAL USED TO STRENGTHEN STEEL IN A CONFERENCE CALL YESTERDAY MORNING ANALYSTS RAISED THE QUESTION OF WHETHER SUCH A COMBINATION WOULD PASS ANTITRUST MUSTER MR BORN WILL BE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE NEW ALUMAX INC A DIRECTOR OF CYPRUSAMAX AND HE WILL REMAIN ON THE BOARD OF AMAX GOLD MR WARD WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OF CYPRUSAMAX TOP MANAGEMENT AT AMAX GOLD WON'T CHANGE THE NEW CYPRUSAMAX BOARD WILL INCLUDE THE 10 CURRENT CYPRUS DIRECTORS AND FIVE FROM AMAX MR WARD SAID HE WOULD PREFER TO WORK WITH A SMALLER BOARD BUT THAT THE FINAL BOARD SIZE HASN'T BEEN DETERMINED CYPRUS WILL CONTINUE TO PAY THE COMPANY'S CURRENT QUARTERLY DIVIDEND OF 20 CENTS A SHARE MR WARD SAID ALUMAX WILL HAVE A NEW BOARD AND IT WILL DECIDE WHETHER THE ALUMINUM COMPANY WILL PAY A DIVIDEND MR BORN SAID THE NATION'S TWO BIG CREDIT RATING CONCERNS MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP PUT THE DEBT OF AMAX CYPRUS AND ALUMAX ON REVIEW 9305260137 930526 GERMAN OFFICIALS WILL INVESTIGATE EXGM OFFICIAL LOPEZ DENIES EVER TAKING DATA FROM AUTO MAKER IN MOVE TO VOLKSWAGEN BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN GERMAN PROSECUTORS SAID THEY HAVE ENOUGH EVIDENCE TO GO FORWARD WITH AN INVESTIGATION INTO WHETHER FORMER GENERAL MOTORS CORP PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA ABSCONDED WITH SECRET DOCUMENTS WHEN HE JUMPED TO VOLKSWAGEN AG BUT IT COULD TAKE MORE THAN SIX MONTHS BEFORE THEY DECIDE WHETHER TO PURSUE CRIMINAL CHARGES THE FIRST STEP WAS TO SEE WHETHER THERE WERE ENOUGH GROUNDS FOR SUSPICION TO BEGIN AN INVESTIGATION SAID A SPOKESMAN FOR THE STATE PROSECUTOR IN DARMSTADT THE GERMAN CITY WHERE GM LODGED ITS COMPLAINT AND IT WAS DECIDED THAT YES THERE IS GM BEGAN HANDING EVIDENCE TO PROSECUTORS ON APRIL 30 WEEKS BEFORE THE WORLD'S LARGEST AUTO MAKER WENT PUBLIC WITH ITS ALLEGATIONS LAST FRIDAY GERMAN PROSECUTORS ALREADY HAVE STARTED INTERVIEWING WITNESSES BUT SAID THE PROCESS COULD BE DELAYED BY THE NEED TO CALL WITNESSES FROM THE US MR LOPEZ IN HIS FIRST PUBLIC STATEMENT AT A HASTILY ARRANGED NEWS CONFERENCE MONDAY DENIED TAKING ANY KIND OF SECRET INFORMATION VW OFFICIALS NOTED MR LOPEZ HASN'T FILED A COUNTERSUIT AGAINST GM AS THIS NEWSPAPER HAD EARLIER QUOTED A VW SPOKESMAN AS SAYING THE FIGHT BETWEEN THE TWO AUTO GIANTS IS ALMOST CERTAIN TO GET MESSIER GM IS UNDER HEAVY PRESSURE NOW TO PROVE ITS ALLEGATIONS OR LOOK EXTREMELY FOOLISH WHILE VW COULD FIND ITS IMAGE TARNISHED IF THE CHARGES ARE CONFIRMED MR LOPEZ MEANWHILE RISKS HAVING HIS EFFECTIVENESS AT VOLKSWAGEN UNDERMINED BY THE CONTROVERSY WHICH FEEDS A GROWING BACKLASH AGAINST HIM AMONG SOME VW EXECUTIVES AND GERMAN SUPPLIERS AT THE NEWS CONFERENCE MONDAY BOTH MR LOPEZ AND VW CHAIRMAN FERDINAND PIECH IN PREPARED STATEMENTS DENOUNCED GM'S CHARGES AS UNFOUNDED BUT REFUSED TO ANSWER QUESTIONS GM OFFICIALS IN DETROIT AND RUESSELSHEIM HEADQUARTERS OF GM'S GERMANBASED SUBSIDIARY ADAM OPEL AG WOULDN'T COMMENT ON THE DISPUTE WE WILL NOT DEBATE THIS ISSUE IN THE NEWSPAPERS A GM SPOKESMAN IN DETROIT SAID OUR BELIEF IS TO LET THE PROSECUTOR DO HIS OR HER WORK WE WILL NOT DISCUSS SPECIFICS HOWEVER ONE PERSON AT GM SAID GM BELIEVES MR LOPEZ AIDED BY SEVEN FORMER GM AND OPEL COWORKERS HE TOOK WITH HIM WHEN HE MOVED TO VW TOOK A LOT OF MATERIAL BOTH IN TERMS OF IMPORTANCE AND IN TERMS OF PAPER VW OFFICIALS SAID THEY HAVEN'T SEEN DETAILS OF GM'S ACCUSATIONS WE ARE YET TO SEE ANYTHING THAT SPELLS THIS OUT SAID A VW SPOKESMAN BUT INDUSTRY WATCHERS SAID THEY ARE STUNNED BY THE LATEST DEVELOPMENT IT'S HARD TO BELIEVE MR LOPEZ WOULD DO THESE THINGS SAID KARL LUDVIGSEN AN AUTO INDUSTRY CONSULTANT BASED IN LONDON BUT GM WOULDN'T BE MAKING THESE LEGAL REPRESENTATIONS IF THEY DIDN'T FEEL PRETTY STRONGLY THAT THEY HAVE A FIRM CASE SO THE STAKES ARE HIGH FOR BOTH COMPANIES THE SHOVING MATCH BETWEEN THE TWO COMPANIES UNDERSCORES THE SENSITIVE POSITION MR LOPEZ ONCE OCCUPIED AT GM A NATIVE OF THE BASQUE REGION OF SPAIN MR LOPEZ WAS A CLOSE ASSOCIATE AND PERSONAL FRIEND TO JOHN F SMITH JR GM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER THE TWO MEN WORKED CLOSELY TOGETHER IN TURNING AROUND GM'S ONCEMORIBUND EUROPEAN OPERATIONS AND IT WAS IN EUROPE MR LOPEZ EARNED HIS SPURS AS A COSTCUTTER BUT THINGS WENT SOUR AFTER MR SMITH TOOK MR LOPEZ WITH HIM TO DETROIT LAST YEAR PUTTING HIM IN CHARGE OF PURCHASING WORLDWIDE IN HIS STATEMENT MONDAY MR LOPEZ SAID ONE REASON HE JUMPED TO VW WAS THAT HE IS A EUROPEAN AND FEELS VERY OBLIGATED TO MY HOMELAND BUT NONE OF THIS EXPLAINS THE CONVOLUTED LEGAL TUSSLE THAT EMERGED IN THE WAKE OF HIS DEPARTURE IN APRIL THE FORMER GM AND OPEL MANAGERS MR LOPEZ BROUGHT WITH HIM TO VW FILED A CIVIL COMPLAINT AGAINST GM IN A LABOR COURT IN THE NORTHERN GERMAN CITY OF BRAUNSCHWEIG ACCUSING GM OF DEFAMATION OF CHARACTER AND UNDERMINING THEIR ABILITY TO WORK MR LOPEZ AS A MEMBER OF VW'S MANAGEMENT BOARD IS INELIGIBLE TO PARTICIPATE IN SUCH A SUIT MR LOPEZ HAS NOT TAKEN ANY LEGAL ACTION AGAINST GM SAID THE VW SPOKESMAN BUT HE RESERVES THE RIGHT TO DO SO HOWEVER THAT CIVIL COMPLAINT WAS JUST A STRATEGIC MOVE VW OFFICIALS NOW CONCEDE BECAUSE GM WAS THREATENING TO FILE A MOTION IN A FRANKFURT COURT BARRING THE MEN FROM WORKING AT VW FOR ONE YEAR GM EVENTUALLY FILED ITS MOTION AND THE CASE WILL BE HEARD TOMORROW THE US CAR MAKER ALSO WON A CIVIL INJUNCTION AGAINST MR LOPEZ AND VW BARRING THEM FROM HIRING ANY MORE GM OR OPEL EXECUTIVES 9305260135 930526 LEISURE & ARTS A YEAR OF TONIGHTS' FOR BRANFORD'S BAND BY ROXANE ORGILL BURBANK CALIF RIPPLES OF CURIOSITY WENT THROUGH THE JAZZ COMMUNITY EXACTLY A YEAR AGO WHEN JAY LENO CHOSE BRANFORD MARSALIS THE EXCELLENT SAXOPHONIST AND BROTHER OF TRUMPETER WYNTON TO LEAD THE NEW TONIGHT SHOW BAND WAS MR MARSALIS A JAZZ FAUST SELLING HIS SOUL FOR FAME AND FORTUNE ON NATIONAL TELEVISION OR WAS HE A MISSIONARY WHO WOULD BRING JAZZ INTO THE MAINSTREAM BY FEBRUARY MR MARSALIS WAS WEARING A BIKINI AS A PENALTY FOR LOSING A SUPER BOWL BET WITH ANOTHER BAND MEMBER ONCE IN A BLUE MOON YOU'D HEAR ONE OF HIS CREAMY SOLOS ON THE TENOR BUT ONLY FOR 10 SECONDS WAS THE DEVIL WINNING I PAID A VISIT TO NBC STUDIOS TO LEARN MORE STUDIO 1 WHERE THE TONIGHT SHOW IS TAPED EVERY WEEKDAY AT 530 PM BEFORE A LIVE AUDIENCE IS A FUN FREEWHEELING KIND OF WORKPLACE A STAFFER CHASES AFTER MR LENO TO TELL THE BOSS A JOKE WHAT'S THE DIFFERENCE BETWEEN A HUSBAND AND A LOVER ABOUT 30 MINUTES MR LENO HAS TO RUN BECAUSE IT'S TIME FOR THE AUDIENCE WARMUP WHICH PREPARES THE STUDIO CROWD TO MAKE LOTS OF NOISE WHENEVER THE APPLAUSE LIGHT FLASHES MR LENO KIDS AROUND AND THEY EAT IT UP WHERE ARE YOU FROM HE ASKS A WOMAN BISMARCK I'VE BEEN THERE HOW'S OUR SON THE BAND MEMBERS STRAGGLE OUT HERE'S THE LOVELY BRANFORD MARSALIS MR LENO ANNOUNCES SNAZZY IN A WIDELEGGED VENTLESS SUIT THE BAND LEADER FLASHES A SMILE ONE BY ONE THE MUSICIANS INCLUDING VICKI RANDLE ON PERCUSSION KENNY KIRKLAND ON KEYBOARDS ROBERT L HURST III ON BASS JEFF TAIN WATTS ON DRUMS KEVIN EUBANKS ON GUITAR SAL MARQUEZ ON TRUMPET AND MATT FINDERS ON TROMBONE TAKE UP THEIR INSTRUMENTS FOR A REGGAE TUNE STAGE MANAGER MIKE SCHIFF TOSSES HIS RAPUNZELLIKE TRESSES OVER HIS SHOULDER AND HOLDS UP SEVEN FINGERS SEVEN SECONDS TO SHOWTIME TONIGHT IS A BIG NIGHT FOR THE BAND MR FINDERS RHYMES WITH CINDERS THE TROMBONIST WILL BE FEATURED IN A COMPOSITION HE WROTE AND NAMED FOR HIS NEW BABY DAUGHTER HANNAH BUT FIRST MR MARSALIS HAS TO WEAR A HOSPITAL GOWN AND PLAY A DYING PATIENT AS PART OF AN APRIL FOOL'S DAY GAG THE BAND PLAYS DURING COMMERCIALS IN TWOMINUTE IMPROVISATIONS ON ANYTHING FROM A LED ZEPPELIN TUNE TO A SONG BY THE DOORS THESE ARE THE MUSICAL SEGMENTS THAT LEAVE THE TV VIEWER WHO HEARS ONLY THE BEGINNING AND THE END WANTING MORE TO MR LENO'S WAY OF THINKING BUT TONIGHT THE VIEWER GETS MORE THE BAND TAKES CENTER STAGE TO PERFORM HANNAH A SLOW BALLAD IN BIGBAND STYLE WITH A LUSHLY ROMANTIC TROMBONE SOLO FOR MR FINDERS AFTER THE SONG HE TAKES A SEAT NEXT TO MR LENO AND THEY TALK ABOUT WHAT ELSE TOILET PLUNGERS WHICH TROMBONISTS USE AS MUTES MR FINDERS LOOKS SHY BUT GAME I'VE GOT MY EYE ON ONE DOWN IN MAINTENANCE HE SAYS AND GETS A LAUGH I'M MORE NERVOUS ABOUT GOING OVER TO HIM THAN I AM ABOUT PLAYING THE TROMBONIST ADMITS LATER HE'S NOT COMPLAINING LATER THIS EVENING HIS MUSIC WILL BE HEARD BY SOME 4 MILLION PEOPLE THAT AND THE HOURS ARE BASICALLY 3 PM TO 630 PM WITH OCCASIONAL EXTRA REHEARSALS BUT NO TRAVEL NO NIGHTS AND NO WEEKENDS BEFORE THE TONIGHT SHOW HE HAD BEEN SITTING IN AN ORCHESTRA PIT IN NEW YORK FOR A YEAR AND A HALF READING MAGAZINES TO KEEP AWAKE BECAUSE THE TROMBONE PART IN THE BROADWAY MUSICAL SECRET GARDEN WAS SO SLIGHT NO TIME FOR READING NOW SOMETIMES BRANFORD PULLS AN AUDIBLE HE SAYS REFERRING TO THE FOOTBALL QUARTERBACK'S LASTMINUTE CHANGE OF PLAY ON THE SCRIMMAGE LINE THIRTY SECONDS BEFORE YOU'RE SUPPOSED TO PLAY HE SAYS NO PLAY THIS INSTEAD' IF YOU HEARD HIM FINE IF YOU DIDN'T YOU'RE A MISTAKE WAITING TO HAPPEN MS RANDLE CONCURS THEY USUALLY GIVE CHARTS TO ALL THE PLAYERS TO ME THEY SAY PLAY SOMETHING LATIN' WHICH COULD BE ANY ONE OF ABOUT 400 RHYTHMS I REALLY HAVE TO BE AWAKE FOR THIS GIG AND VERSATILE WE PLAY FUSION WE PLAY RHYTHM AND BLUES WE PLAY FUNK AND JAZZ WE PLAY ALL KINDS OF MUSIC SAYS MR MARSALIS THE NEXT AFTERNOON HE IS SLOUCHED ON HIS DRESSING ROOM SOFA THROWING A BASEBALL INTO A MITT HARD OVER AND OVER AS HE CONTINUES THE MARSALISASJAZZMISSIONARY FANTASY VANISHES WITHOUT A TRACE I WAS MADE FOR A JOB LIKE THIS BECAUSE I UNDERSTAND THE POLITICS OF THE BUSINESS A LOT OF MY PEERS WOULDN'T MOST JAZZ MUSICIANS WOULD WANT TO HAVE MORE EXPOSURE BECAUSE WE GET SO LITTLE SLAP GOES THE BASEBALL I DIDN'T EXPECT THIS TO BE A JAZZ CLUB IT'S A TV GIG SLAP I TRY TO APPROACH LIFE WITH A WHORE'S FOREHEAD I AM NOT ASHAMED HE PAUSES WAITING FOR A REACTION GETTING NONE HE RESUMES THROWING THE BASEBALL WE ALL HAVE A LOT OF FUN ESPECIALLY WHEN WE START LAUGHING AT THE GUESTS WE HAVE A LITTLE CUTUP CORNER WE TRY TO BREAK UP THE MONOTONY SO THEY DO THAT EVENING MR WATTS WEARS A TSHIRT ON HIS HEAD AND MS RANDLE MIMICS A FRENZIED ROCK DRUMMER OFFCAMERA WHILE BRYAN ADAMS A ROCK GUITARISTSINGER PERFORMS WITH HIS BAND THERE IS ONCAMERA CUTTING UP TOO IN A SKIT ABOUT SPRING TRAINING EXERCISES FOR BASEBALL FANS MR WATTS PLAYS AN UMPIRE WHO GETS PELTED WITH APPLES GRAPEFRUITS AND WIFFLE BALLS THEY PAY ME IT'S COOL THE DRUMMER SAYS AFTERWARDS HE ADMITS HOWEVER TO FEELING SOMEWHAT MUSICALLY DEPRIVED HE PLAYS JAZZ AND BRAZILIAN AND AFROCUBAN MUSIC IN A HOLLYWOOD HOTEL ONE NIGHT A WEEK AND RECORDS WITH BRANFORD'S JAZZ BAND BUT IT'S NOT ENOUGH I'M DYING TO PLAY MORE STILL MR WATTS WOULD LIKE PEOPLE TO KNOW THAT WORKING IN A VARIETY SHOW BAND IS HARDER THAN IT SEEMS IT DOESN'T LOOK LIKE IT FROM THE OUTSIDE BUT ONCE YOU GET IN IT THERE'S AN ART TO PULLING IT OFF PLAYING DIFFERENT MUSIC ALL THE TIME BACKING UP THE GUESTS AND THEN PLAYING IN COMPRESSED BYTES TRYING TO SOUND LIKE A BAND ONCE IN A WHILE WE DO MS ORGILL WRITES ABOUT MUSIC AND LIVES IN HOBOKEN NJ 9305260134 930526 CURRAGH TO RECEIVE EQUITY INVESTMENT FROM 2 COMPANIES A WALL STREET JOURNAL NEWS ROUNDUP CURRAGH INC A MINING CONCERN THAT IS OPERATING UNDER CANADIAN BANKRUPTCY COURT PROTECTION SAID TWO SOUTH KOREAN COMPANIES AGREED TO INJECT 50 MILLION CANADIAN DOLLARS US396 MILLION OF NEW EQUITY IF CURRAGH CAN RESTRUCTURE ITS DEBT THE PROPOSED EQUITY INVESTMENT COULD MEAN A NEW LEASE ON LIFE FOR CURRAGH IN TORONTO WHICH HAS SEEN ITS CASH FLOW DETERIORATE DUE TO WEAK METAL MARKETS AND THE EFFECTS OF A 1992 MINE DISASTER THE INVESTMENT ALSO WOULD MEAN CLIFFORD FRAME CURRAGH'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WOULD LOSE HIS CONTROL OF THE COMPANY HE FOUNDED IN THE MID1980S MR FRAME SUGGESTED IN AN INTERVIEW THAT HE WOULD SELL HIS REMAINING INTEREST IN CURRAGH ONCE THE COMPANY GOT BACK ON ITS FEET CURRAGH SAID THE PROPOSED INVESTMENT WOULD BE MADE BY KOREA ZINC LTD WHICH ALREADY PURCHASES SOME OF CURRAGH'S OUTPUT OF ZINC AND LEAD CONCENTRATE AND CONGLOMERATE SAMSUNG CO IN EXCHANGE THE TWO INVESTING COMPANIES WOULD RECEIVE A COMBINED 50 OF CURRAGH'S EQUITY THE TRANSACTION WHICH IS SUBJECT TO VARIOUS CONDITIONS INCLUDING THE RESTRUCTURING OF CURRAGH'S DEBT IS EXPECTED TO CLOSE BY THE END OF AUGUST MEANWHILE MR FRAME SAID CURRAGH HAS HIRED PAINEWEBBER INC OF NEW YORK TO SEEK A FURTHER C25 MILLION INVESTMENT IN CURRAGH IN ORDER TO COME OUT OF THIS RECESSION IN GOOD SHAPE CURRAGH HAD A LOSS OF C543 MILLION LAST YEAR AND HAD TOTAL LIABILITIES OF C362 MILLION AS OF DEC 31 MR FRAME OWNS 49 OF CURRAGH'S STOCK BUT CONTROLS 91 OF THE VOTES THROUGH HIS HOLDING OF MULTIPLEVOTING SHARES THIS SPECIAL CLASS OF SHARES WOULD BE CONVERTED TO COMMON STOCK UNDER THE TERMS OF THE KOREAN COMPANIES' PROPOSED INVESTMENT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CURRAGH'S SHARES CLOSED YESTERDAY AT 5625 US CENTS UP 25 US CENTS 9305260133 930526 TSANN KUEN OFFERING IN CHINA HONG KONG TSANN KUEN CHINA ENTERPRISE CO WILL BECOME THE FIRST TAIWAN CONCERN LISTED ON CHINA'S FLEDGLING CLASS B SHARE MARKET FOR FOREIGNERS WITH A 2112 MILLION YUAN 37 MILLION PUBLIC OFFER IN SHENZHEN THE HOUSEHOLD GOODS MANUFACTURER WHICH IS NOW WHOLLY OWNED BY TAIWAN INTERESTS SAID IT WILL OFFER FOR SALE 40 MILLION B SHARES AT 528 YUAN EACH IN THE SOUTHERN CITY BUT NO CLASS A SHARE ISSUE FOR DOMESTIC INVESTORS IS INVOLVED IN THE FLOTATION 9305260132 930526 INTERNATIONAL JAPANESE HOUSEHOLD SPENDING TOKYO JAPAN'S HOUSEHOLD SPENDING IN MARCH WAS UP 11 FROM THE YEAREARLIER MONTH IN REAL TERMS THE STATISTICS BUREAU OF THE PRIME MINISTER'S OFFICE ANNOUNCED OUTLAYS WERE UP FROM A YEAR EARLIER FOR THE FIRST TIME IN FOUR MONTHS THE RISE IN MARCH CAME ON THE HEELS OF THE FEBRUARY DROP OF 34 THE SHARPEST PACE OF DECLINE SINCE NOVEMBER 1990 9305260131 930526 UNIFI TO BUY PIONEER YARNS GREENSBORO NC UNIFI INC SAID IT IS IN TALKS TO ACQUIRE PIONEER YARNS INC A PRIVATELY HELD COMPANY IN SANFORD NC FOR STOCK AND CASH UNIFI DECLINED TO DISCUSS PRECISE TERMS OF THE TRANSACTION PIONEER YARNS WHICH EMPLOYS ABOUT 350 PEOPLE HAD SALES OF 616 MILLION IN ITS FISCAL YEAR ENDED SEPT 26 1992 UNIFI SAID A PROCESSOR OF POLYESTER FIBERS UNIFI HAD SALES OF 5512 MILLION AT DEC 27 FOR THE FIRST HALF OF ITS FISCAL YEAR UNIFI SAID THE ACQUISITION WOULD ADD TO ITS SPUN COTTON AND SYNTHETIC YARN PRODUCTS 9305260130 930526 INTERNATIONAL NORTH KOREA AMID NUCLEAR ISSUE AGREES TO SEOUL'S OFFER FOR TALKS BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA SIGNALING THAT IT MAY BE LOOKING FOR A WAY OUT OF THE DIPLOMATIC IMPASSE CREATED BY ITS NUCLEAR AMBITIONS NORTH KOREA RESPONDED POSITIVELY TO AN OFFER FROM SOUTH KOREA FOR DIRECT TALKS THE STATEMENT YESTERDAY FOLLOWED BY HOURS AN ANNOUNCEMENT THAT OFFICIALS FROM NORTH KOREA AND THE US WOULD MEET JUNE 2 TO SEAL NEGOTIATIONS FOR WHAT WILL BE ONLY THE SECOND ROUND OF DIRECT SENIORLEVEL CONTACTS BETWEEN THE TWO COUNTRIES SINCE THE KOREAN WAR ENDED IN 1953 PYONGYANG'S PROPOSAL FOR AN INTERKOREAN MEETING WHICH SURPRISED ANALYSTS FOR ITS CONCILIATORY TONE AND LACK OF CONDITIONS FED HOPES FOR A DIPLOMATIC RESOLUTION TO NORTH KOREA'S MARCH 12 ANNOUNCEMENT THAT IT WOULD WITHDRAW FROM THE NUCLEAR NONPROLIFERATION TREATY INTELLIGENCE AGENCIES BELIEVE PYONGYANG IS DEVELOPING A NUCLEAR FACILITY CAPABLE OF PRODUCING ATOMIC WEAPONS WITHIN THE YEAR IT'S A SIGNIFICANT RESPONSE SAID A WESTERN DIPLOMAT WHO WATCHES NORTH KOREA ANYTHING BUT A NO' IS SIGNIFICANT BUT ANYONE WHO'S NOT SURPRISED AT THIS IS A LIAR IN A MESSAGE ADDRESSED TO HIS SOUTH KOREAN COUNTERPART NORTH KOREAN PREMIER KANG SONG SAN PROPOSED THAT BOTH SIDES MEET MONDAY TO LAY THE GROUNDWORK FOR A LANDMARK SUMMIT THAT COULD COMPREHENSIVELY RESOLVE MAJOR PROBLEMS HE SUGGESTED THE DELEGATIONS BE LED BY OFFICIALS OF DEPUTY PRIME MINISTER RANK AND MEET AT THE NEUTRAL VILLAGE OF PANMUNJOM IN THE DEMILITARIZED ZONE SEPARATING NORTH AND SOUTH KOREA THE PROPOSAL MADE NO MENTION OF NUCLEAR WEAPONS INDICATING NORTH KOREA WAS WILLING TO DISCUSS THEM DIPLOMATS SAID THE MESSAGE WAS IN RESPONSE TO A PROPOSAL TO PYONGYANG FROM SEOUL THAT DIALOGUE BE RESUMED ON ISSUES RELATED TO REUNIFICATION INCLUDING NORTH KOREA'S NUCLEAR PROGRAM OFFICIALS OF THE TWO GOVERNMENTS HELD THEIR MOST RECENT REGULAR MEETING IN SEPTEMBER RELATIONS BETWEEN THE TWO COUNTRIES STILL TECHNICALLY AT WAR HAVE CEASED SINCE NORTH KOREA'S MOVE TO WITHDRAW FROM THE NONPROLIFERATION TREATY 10 WEEKS AGO THE SEOUL GOVERNMENT SAID IN A STATEMENT IT WOULD ISSUE ITS RESPONSE WITHIN A FEW DAYS ANALYSTS SAID MR KANG'S MESSAGE AND THE AGREEMENT ON A USNORTH KOREAN DIALOGUE SENT THE CLEAREST SIGNAL YET THAT PYONGYANG IS LOOKING FOR A FACESAVING WAY OUT OF ITS PREDICAMENT NORTH KOREA'S DECISION TO QUIT THE TREATY WOULD BECOME EFFECTIVE JUNE 12 AT THE END OF A THREEMONTH WAITING PERIOD NO COUNTRY HAS EVER WITHDRAWN FROM THE TREATY AT THE JUNE 2 MEETING THE US WILL DEMAND THAT NORTH KOREA OPEN ITS NUCLEAR PLANTS TO INTERNATIONAL INSPECTORS OR FACE SANCTIONS A SENIOR STATE DEPARTMENT OFFICIAL TOLD THE ASSOCIATED PRESS YESTERDAY NORTH KOREA'S EAGERNESS FOR A SUMMIT COULD TURN OUT TO BE AN ATTEMPT TO CAST ITS NUCLEAR PROGRAM AS AN INTERKOREAN AFFAIR THAT SHOULD BE RESOLVED ONLY BY PYONGYANG AND SEOUL SOUTH KOREA IS EXPECTED TO INSIST THAT NUCLEAR ARMS BE PART OF THE AGENDA TO PREVENT PYONGYANG FROM STALLING ON THE ISSUE YET DIPLOMATS SAID THEY WERE ENCOURAGED BY THE TENOR OF MR KANG'S MESSAGE MOST EXPECTED PYONGYANG TO RESPOND WITH THE USUAL RECRIMINATIONS AGAINST THE SEOUL GOVERNMENT WHICH IT VIEWS AS A PUPPET OF THE US BUT MR KANG'S PROPOSAL WAS FREE OF SUCH HUBRIS PROBABLY BECAUSE OF THE COMING PYONGYANGWASHINGTON MEETING 9305260129 930526 T2 MEDICAL SHARES CLIMB ON THE NEWS OF TAKEOVER TALKS ATLANTA T2 MEDICAL INC SAID A GROUP OF INVESTORS INCLUDING SOME MEMBERS OF THE COMPANY'S MANAGEMENT WERE CONSIDERING MAKING AN OFFER TO ACQUIRE THE MEDICALSERVICES COMPANY NEWS OF THE PRELIMINARY TALKS HELPED PUSH T2'S SHARE PRICE UP 150 TO 16875 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE T2 WHICH PROVIDES OUTPATIENT TREATMENT SERVICES SAID THAT NO FORMAL PROPOSAL HAS BEEN MADE THAT NO FINANCING HAS BEEN ARRANGED AND THAT ITS DIRECTORS HAVEN'T BEEN PRESENTED WITH CONSIDERED OR MADE ANY DETERMINATIONS REGARDING ANY POTENTIAL PROPOSAL THE COMPANY ALSO CAUTIONED THAT THERE ARE NO ASSURANCES THAT THE INVESTORS WILL MAKE A PROPOSAL OR THAT ANY OFFER IF MADE WOULD BE ACCEPTED AFTER GAINING A REPUTATION AS ONE OF WALL STREET'S HIGHEST FLIERS IN THE LATE 1980S AND EARLY 1990S T2 HAS SEEN ITS SHARE PRICE FALL DRAMATICALLY IN THE PAST YEAR HITTING A 52WEEK LOW OF 9625 IN LATE APRIL THE COMPANY IS FACING INCREASED COMPETITION AS WELL AS CONTINUING PRESSURE FROM INSURERS AND OTHER PAYERS FOR DISCOUNTS ON ITS SERVICES MOREOVER CONCERNS PERSIST AMONG LEGISLATORS AND HEALTHCARE OFFICIALS ABOUT PHYSICIANS REFERRING PATIENTS TO FACILITIES IN WHICH THE DOCTORS HAVE A FINANCIAL INTEREST INCLUDING SOME MEDICAL CENTERS OPERATED BY T2 IN APRIL THE COMPANY REPORTED THAT EARNINGS FOR FISCAL SECOND QUARTER ENDED MARCH 31 HAD JUMPED 28 TO 19 MILLION OR 47 CENTS A SHARE FROM 148 MILLION OR 36 CENTS A SHARE A YEAR EARLIER THE INCREASE HOWEVER INCLUDED A ONETIME GAIN OF 10 CENTS A SHARE ON THE SALE OF RESPIRATORYTHERAPY ASSETS AT THE SAME TIME JOSEPH C ALLEGRA THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE SAID THAT DURING THE QUARTER T2 SAW GREATERTHANEXPECTED PRICING PRESSURE IN CERTAIN AREAS OF ITS HOMEINFUSION THERAPY SECTOR THAT PRESSURE HE SAID IS EXPECTED TO CONTINUE FOR THE FORESEEABLE FUTURE BUT SHOULDN'T HAVE A SUBSTANTIAL EFFECT ON OUR OTHER ALTERNATESITE BUSINESSES 9305260128 930526 BEAR STEARNS SELLS STAKE IN TRUST NEW YORK BEAR STEARNS & CO HAS SOLD ITS ENTIRE 165 STAKE IN SALOMON PHIBRO OIL TRUST THE SALOMON INC OIL TRADING AND REFINING SUBSIDIARY FOR 116 MILLION THE BUYERS WEREN'T IMMEDIATELY KNOWN AND OFFICIALS AT BEAR STEARNS WEREN'T ABLE TO SAY WHY THE FIRM DECIDED TO GET OUT OF THE TRUST A SPOKESWOMAN AT SALOMON ALSO COULDN'T PROVIDE INFORMATION ABOUT THE SALE OF THE APPROXIMATELY 27 MILLION UNITS SALOMON PHIBRO OIL TRUST HAS 163 MILLION UNITS OUTSTANDING 9305260127 930526 SONY DENIES KODAK'S CHARGES PARK RIDGE NJ SONY CORP SAID IT FORMALLY DENIED EASTMAN KODAK CO'S ALLEGATIONS IN A PATENTINFRINGEMENT LAWSUIT FILED AGAINST SONY IN FEBRUARY OVER A MAGNETIC RECORDING SYSTEM IN FEDERAL COURT IN MARSHALL TEXAS SONY CONTENDED THAT THE KODAK PATENT ISN'T INFRINGED BY SONY AND IN FACT IS INVALID BASED ON PRIOR TECHNOLOGY OF OTHERS KODAK SEEKS UNSPECIFIED DAMAGES AND AN INJUNCTION AGAINST INFRINGEMENT THE MAGNETIC SYSTEM INVOLVED IS COMMONLY USED IN VIDEORECORDING EQUIPMENT SONY SAID IT ALSO SOUGHT TO TRANSFER THE SUIT FROM TEXAS TO SAN DIEGO WHERE THE PATENTEE AND OTHER EVIDENCE RELATED TO THE CASE ARE LOCATED 9305260125 930511 LEISURE & ARTS BOB HOPE STILL A TROUPER AT AGE 90 BY JOHN MCDONOUGH TOLUCA LAKE CALIF NEVER LOOK BACKWARD THE SAYING GOES SOMEONE MAY BE CATCHING UP WHEN BOB HOPE LOOKS BACK ON FRIDAY THOUGH HE'LL HAVE NOTHING TO WORRY ABOUT THERE WON'T BE A SOUL IN SIGHT THE OCCASION WILL BE A THREEHOUR SPECIAL ON NBC MARKING HIS 90TH BIRTHDAY HE WAS BORN ON MAY 29 BUT IN TELEVISION IT'S EASIER TO MOVE A BIRTHDAY THAN A SWEEPS PERIOD FRIENDS WILL BE THERE WHO KNEW HIM WHEN INCLUDING AL BORDEN WHO BECAME MR HOPE'S PROP MAN IN 1934 BARNEY MCNULTY WHO'S HELD HIS CUE CARDS FOR 40 YEARS AND NBC HIS NETWORK SINCE 1938 NEXT YEAR HE'LL BE BACK FOR HIS 56TH SEASON THERE IS SOMETHING ASTONISHING IN THIS IN 60 YEARS OF STARDOM HE'S NEVER RETIRED NEVER MADE A COMEBACK NEVER GIVEN US A MOMENT'S OPPORTUNITY TO SEAL HIM IN NOSTALGIC ASSOCIATIONS WITH RADIO OR WORLD WAR II OR SOUR ONES WITH VIETNAM HIS LIFE IS LIKE HIS MONOLOGUES IF SOMETHING BOMBS JUST KEEP MOVING AND NEVER GIVE ANYONE A REASON TO ASK THE QUESTION DO YOU REMEMBER BOB HOPE NEXT YEAR WILL ALSO BE HIS 60TH SEASON WITH HIS WIFE DELORES WHOM HE SIGNED IN 1934 TO A RUNOFTHEPLAY CONTRACT WE'RE JUST STAYING TOGETHER FOR THE CHILDREN MR HOPE CRACKS AS SHE WALKS INTO THE LIVING ROOM OF THEIR HOME HERE WE'RE WAITING FOR THEM TO DIE FOR YEARS HE TRAVELED THE WORLD AND SHE RAISED THEIR FOUR KIDS ON THEIR 50TH ANNIVERSARY SHE GAVE HIM A GOLD PAPERWEIGHT THE INSCRIPTION READ 19341984 DON'T THINK THESE THREE WEEKS HAVEN'T BEEN GREAT NOW AT 84 SHE'S SUDDENLY GOT HER OWN GIG WHICH INCLUDES A THOROUGHLY LOVELY DEBUT ALBUM CALLED NOW AND THEN ON WHICH SHE SINGS STANDARDS FROM FATS WALLER TO BILLY JOEL AVAILABLE FROM HOPE ENTERPRISES 1800252SING AND SHE LITERALLY STOPPED THE BIRTHDAY SHOW FILMED ON MAY 1 WITH A SLOW AND JAZZY PAPER MOON THAT BROUGHT AN ASTONISHED CROWD TO ITS FEET A RECENT VISIT TO THEIR HOME PROVIDED A GLIMPSE OF A REMARKABLE COUPLE MR HOPE OF COURSE IS AN OLD PRO AT SELF PROMOTION IN INTERVIEWS HE DODGES CONTROVERSY RESISTS ANALYZING HIS OWN WORK IN ANY DEPTH AND DEFLECTS TOOPROBING QUESTIONS WITH QUIPS AND GREAT SHOW BUSINESS ANECDOTES BUT MRS HOPE IS A NEWCOMER TO INTERVIEWS SHE'S A LIVELY AND CANDID RACONTEUR THE KIND THAT GIVES PUBLICISTS BAD DREAMS AND REPORTERS GOOD STORIES SHE DESPISES SEX AND VIOLENCE IN MOVIES AND GIVES CONVINCING REASONS WHY AS MR HOPE'S MEDIA RELATIONS MAN SQUIRMS NERVOUSLY WE'RE SELLING ALBUMS HERE HE SEEMS TO BE THINKING LET'S NOT ALIENATE ANYONE THE HOPES BUILT THEIR HOME IN 1939 WHEN NEIGHBORING BURBANK AND NORTH HOLLYWOOD WERE STILL MOSTLY ORANGE GROVES OVER THE YEARS IT'S BEEN REMODELED AND ADDED TO SO MANY TIMES MR HOPE SAYS HE NEEDS A ROAD MAP TO FIND MY ROOM IT SITS ON SEVEN ACRES A GOOD TEE SHOT NORTH OF LAKESIDE COUNTRY CLUB WHERE THE HOPES ARE DUE FOR NINE HOLES AFTER THIS INTERVIEW A STAFF OF EIGHT RUNS THE HOUSE NOT COUNTING GROUNDS PEOPLE AS YOU WALK INTO THE PLAYROOM FROM THE DRIVEWAY A NEW ENGLAND SNOWSCAPE BY GRANDMA MOSES HANGS ON THE WALL IT WAS BOUGHT IN 1946 MRS HOPE SAYS FOR 1700 MANY OF THE COLORFUL PAINTINGS AROUND THE HOUSE ARE BY MARION PIKE A FAMILY FRIEND AS MR HOPE WALKS UP THE CURVED STAIRCASE FROM THE FOYER HE HUMS SOME NAMELESS TUNE A CURIOUS NERVOUS HABIT HE'S HAD FOR YEARS THE WALLS OF THE HALL LEADING TO HIS OFFICE ARE COVERED WITH FRAMED PHOTOS OF ENTERTAINERS AND POLITICAL FIGURES MOSTLY SIGNED IN HIS OFFICE MR HOPE POINTS TO A SHOT OF PRESIDENT KENNEDY GIVING HIM A MEDAL AT THE WHITE HOUSE WHEN HE GAVE ME THAT HE SAID HE SAW ME ON WENE ISLAND IN THE PACIFIC DURING THE WAR KENNEDY WHAT A KICK BOB HOPE STILL HOLDS PRESIDENTS IN AWE THE OFFICE IS DOMINATED BY A LARGE PARTNER DESK ON IT SITS THE ONLY BOOK IN EVIDENCE A COPY OF THE COMING BOOM BY HENRY DENT MR HOPE TAKES BUSINESS SERIOUSLY AND HE IS NO SLOUCH AT MAKING MONEY MORE THAN 30 YEARS AGO HE MADE A DEAL WITH NBC THAT LOCKED HIS TV PRODUCTION LABOR COSTS AT 1959 RATES THE NETWORK HAS BEEN EATING THE DIFFERENCE EVER SINCE HE'S STILL VERY INVOLVED IN ALL BUSINESS MATTERS AND DECISIONS SAYS JAN MORRILL HIS PERSONAL SECRETARY CURRENTLY HE IS NEGOTIATING WITH JAPANESE INVESTORS TO SELL HIS ENTIRE TELEVISION LIBRARY FOR AN UNDISCLOSED SUM FORTYODD YEARS OF KINESCOPES AND VIDEOTAPES ARE BEING DIGITIZED FOR A POSSIBLE BEST OF SERIES IN SYNDICATION HE IS ALSO TOYING WITH AN IDEA FOR A MUSEUM OF HIS MEMORABILIA IN ORLANDO THE DEALS KEEP ON COMING BUT MR HOPE STILL GRUMBLES ABOUT THE ONES THAT GOT AWAY BUT WITH A SENSE OF SPORT AS IF THEY WERE DOUBLE BOGEYS YEARS AGO HE OWNED WHAT IS NOW THE SOUTH LOT OF UNIVERSAL PICTURES AND USED IT AS A GOLF RANGE WHENEVER I DRIVE OVER THAT HILL ON BARHAM HE SAYS I STILL CRY FOR SELLING IT TOO SOON WHILE THE REST OF US MARVEL AT MR HOPE'S LONGEVITY ONE SENSES HE WOULD RATHER DUCK THE TOPIC ALTOGETHER ANY OTHER COMIC AT HIS AGE WOULD BUILD HIS ACT AROUND BEING 90 BUT MR HOPE WILL HAVE NONE OF THAT NOT ONLY WOULD IT SUBVERT A COMIC PERSONA THAT STILL LETS HIM OGLE BLONDES IN SKETCHES IT PROBABLY WOULD VIOLATE HIS MOST BASIC UNDERSTANDING OF HIMSELF BECAUSE MR HOPE HAS NOT RECONCILED HIMSELF TO 90 ONE CAN EASILY SEE WHY TIME AND BIOCHEMISTRY HAVE TREATED HIM WITH EXTRAORDINARY INDULGENCE SPARING HIM SERIOUS RECKONING WITH THE NUISANCES OF AGE HE IS A MENTALLY AND PHYSICALLY VIGOROUS MAN AT HOME WITHOUT MAKEUP HE LOOKS ABOUT 70 THE MORNING AFTER HE TAPED HIS BIRTHDAY SPECIAL HE WAS SEEN SHOPPING AT THE UPSCALE PAVILION SUPERMARKET IN BURBANK AS LATE AS 1986 HE WOULD THINK NOTHING OF LEAVING NBC DURING A BREAK FLYING OFF TO VEGAS TO DO 50 MINUTES AND FLYING BACK TO RESUME WORK IT HAPPENED ALL THE TIME SAYS LINDA HOPE HIS ELDEST DAUGHTER AND EXECUTIVE PRODUCER OF HIS SPECIALS WHO IS GLAD HE'S SLOWED DOWN TODAY HE MAKES ABOUT FOUR APPEARANCES A MONTH FOR WHICH HE GETS IN EXCESS OF 50000 APIECE BUT THERE IS AN EXCESSIVE SENSE OF PRIDE IN THIS STAMINA THAT HAS MADE HIM A NEGLIGENT CUSTODIAN OF HIS GREAT COMIC TALENT LATELY AND FOR NO GOOD REASON IT IS QUICKLY EVIDENT IN CONVERSATION THAT MR HOPE HAS GROWN QUITE HARD OF HEARING THE SOLUTION IS SIMPLE YET HIS 1200 HEARING AID LIES UNUSED IN A DRESSER DRAWER HE JUST WON'T WEAR IT MRS HOPE SAYS CLOSE FRIENDS INCLUDING ROSEMARY CLOONEY AND STAFFERS WHO HAVE TO SHOUT AT HIM FROM FIVE FEET AWAY SHARE HER FRUSTRATION SUCH STUBBORNNESS WOULD BE NOBODY'S BUSINESS BUT HIS IF IT WEREN'T FOR ITS PERFORMANCE CONSEQUENCES MR HOPE DOES NOT SEEM TO APPRECIATE THAT WHATEVER DAMAGE HIS HEARING AID MIGHT POSE TO HIS VANITY IT IS NOTHING COMPARED WITH THE DAMAGE THE LACK OF IT IS NEEDLESSLY INFLICTING ON HIS TIMING HIS TEMPO AND HIS SHEER ABILITY TO PERFORM IF HE CAN'T HEAR HE CAN'T RESPOND AND IF HE CAN'T RESPOND YOU CAN FORGET STAMINA IT'S TOUGH TO WATCH DAVID LETTERMAN SAID IN A RECENT ROLLING STONE INTERVIEW AND SO WERE PARTS OF THE BIRTHDAY TAPING AS MR HOPE STEPPED ON DOROTHY LAMOUR'S JOKES AND COULDN'T SEEM TO HEAR A THING FELLOW NONAGENARIAN GEORGE BURNS WAS SAYING THIS ALONG WITH A SLAPDASH APPROACH TO HIS SPECIALS HAVE NOT SERVED HIM WELL LATELY HE COMES OFF MUCH BETTER IN LIVE PERFORMANCES WITHOUT THE ARTIFICE OF EDITING AND CUE CARDS WHICH DIVERT EYE CONTACT FROM HIS GUESTS NO ONE KNOWS THIS BETTER THAN HIS DAUGHTER LINDA IN SOME RESPECTS HE IS HIS OWN WORST ENEMY SHE SAYS BUT IT'S VERY HARD TO GET SOMEONE WHO'S KNOWN ONLY SUCCESS TO MAKE CHANGES VERY HARD INDEED THE STRUCTURE OF MR HOPE'S SHOWS HAS NOT CHANGED SUBSTANTIALLY SINCE THE HEYDAY OF RADIO YET THEY USUALLY WIN THEIR TIME PERIODS FOR NBC HE HAS STUCK BY THE VARIETY FORMAT DECADES AFTER ITS EXTINCTION ON NETWORK TV IN MANY WAYS BOB HOPE IS A DINOSAUR BUT THEN DINOSAURS ARE THE HOTTEST THING IN SHOW BUSINESS TODAY AREN'T THEY MR MCDONOUGH IS A MUSIC WRITER IN CHICAGO THE MAY 11 LEISURE & ARTS PAGE ARTICLE BOB HOPE STILL A TROUPER AT AGE 90 MISSTATED THE TITLE OF A BOOK AND THE AUTHOR'S NAME IT SHOULD HAVE READ THE GREAT BOOM AHEAD BY HARRY S DENT JR 9305260124 930526 CANADA'S HIGHER YIELDS PUSH FOREIGN INVESTORS TO BUY AT RECORD PACE OTTAWA US AND OTHER FOREIGN INVESTORS WERE NET BUYERS IN MARCH OF A RECORD 1206 BILLION CANADIAN DOLLARS US956 BILLION OF CANADIAN STOCKS BONDS AND MONEYMARKET PAPER THE GOVERNMENT SAID THE PREVIOUS RECORD WAS FEBRUARY'S C681 BILLION IN PURCHASES ACCORDING TO THE GOVERNMENT AGENCY STATISTICS CANADA THE BUYING WAS PROMPTED BY COMPARATIVELY HIGH YIELDS ON CANADIAN BONDS AND MONEYMARKET PAPER AND BY A RISE IN CANADIAN STOCK PRICES NET FOREIGN PURCHASES OF NEW BOND ISSUES IN MARCH TOTALED C781 BILLION FOREIGN INVESTORS ALSO WERE NET BUYERS OF C332 BILLION OF BONDS OUTSTANDING C162 BILLION OF MONEYMARKET PAPER AND C954 MILLION OF STOCKS RETIREMENTS OF BONDS HELD BY FOREIGNERS TOTALED C174 BILLION IN MARCH US INVESTORS ACCOUNTED FOR 70 OF NET FOREIGN INVESTMENT IN NEW BONDS AFTER RETIREMENTS THEY ALSO ACCOUNTED FOR THE MAJOR PORTION OF THE C309 BILLION OF NET FOREIGN STOCK INVESTMENT IN THE SIX MONTHS ENDED MARCH 31 STATISTICS CANADA SAID 9305260123 930526 INTERNATIONAL ISRAELI KIBBUTZ'S NEW FREEMARKET STYLE DEFIES SOCIALIST IDEALS SPARKS DEBATE BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL EIN ZIVAN ISRAEL AT MOST KIBBUTZIM THE COLLECTIVE FARMS IN ISRAEL THE DINING HALL IS WHERE MEMBERS MEET TO SHARE COMMUNAL MEALS EXCHANGE GOSSIP AND ARGUE POLITICS AT KIBBUTZ EIN ZIVAN THE DINING HALL HAS BEEN CONVERTED INTO A MINIMARKET AND A COFFEE SHOP EIN ZIVAN'S RETREAT FROM THE SOCIALIST IDEALS THAT EPITOMIZE THE KIBBUTZ MOVEMENT DIDN'T END AT THE KITCHEN KIBBUTZ MEMBERS RECENTLY VOTED TO STOP POOLING THEIR EARNINGS AND DIVIDING THEM EQUALLY AND INSTEAD PAY MEMBERS ACCORDING TO THE MARKET VALUE OF THEIR WORK THE DECISION HAS SPARKED A DEBATE WITHIN THE KIBBUTZ MOVEMENT OVER WHETHER EIN ZIVAN ON THE GOLAN HEIGHTS A FEW MILES FROM THE SYRIAN BORDER CAN STILL BE CONSIDERED A KIBBUTZ THE SWITCH FROM SOCIALIST ECONOMICS TO THE FREE MARKET IS TAKING PLACE ALL OVER ISRAEL NOT JUST IN THE KIBBUTZIM BUT THE TRANSFORMATION HAS BEEN MOST GLARING THERE WHERE MEMBERS ACCUMULATED A DEBT OF 10 BILLION BY OVERBORROWING DURING THE 1980S UNDER A MANAGEMENT PHILOSOPHY THAT PUT STATEBUILDING ABOVE PROFITMAKING A GOVERNMENTBROKERED BAILOUT WAS SUPPOSED TO SAVE THE DEBTSTRAPPED KIBBUTZIM BY CANCELING SOME LOANS AND STRETCHING OUT THE REMAINING PAYMENTS BUT THE FINANCIAL CRISIS IS SO ACUTE THAT A REPORT THIS MONTH BY THE STATE COMPTROLLER'S OFFICE DETERMINED THAT UNLESS STRUCTURAL CHANGES ARE MADE IN THE KIBBUTZ SYSTEM MANY OF THE SETTLEMENTS WON'T BE VIABLE EVEN IF THEY NEVER HAVE TO MAKE ANOTHER INTEREST PAYMENT IF THE KIBBUTZ DOESN'T BECOME MORE COMPETITIVE IT WILL DISAPPEAR SAYS YOEL GIVOL A MEMBER OF KIBBUTZ EIN ZIVAN WHO RUNS A COMPUTER SOFTWARE COMPANY KIBBUTZ EIN ZIVAN WAS FOUNDED BY ISRAELI ARMY VETERANS IN 1968 ON THE SITE OF A DESERTED SYRIAN ARMY BASE THE SECOND JEWISH SETTLEMENT ON THE MOUNTAINS CONTROLLED BY SYRIA UNTIL THEIR CAPTURE IN THE 1967 ARABISRAELI WAR LIKE MANY KIBBUTZIM EIN ZIVAN EXPANDED BY BORROWING HEAVILY DURING THE 1980S BUT WHEN THE ISRAELI GOVERNMENT TRIED TO CONTROL TRIPLEDIGIT INFLATION BY SENDING INTEREST RATES SOARING EIN ZIVAN COULDN'T REPAY THE DEBT HALF OF THE COMMUNITY'S 120 MEMBERS LEFT THE KIBBUTZ FACED WITH EIN ZIVAN'S COLLAPSE MR GIVOL AND A FEW OTHER REFORMERS PERSUADED THE REMAINING MEMBERS TO MAKE SWEEPING CHANGES TO INCREASE KIBBUTZ INCOME PROFESSIONAL MANAGERS WERE BROUGHT IN TO TAKE CONTROL OF THE KIBBUTZ AND ITS PLASTICSHOE FACTORY AND FARM INVESTMENT WAS INCREASED AND EXPENDITURES CUT TELEPHONE AND ELECTRIC BILLS EVEN CHILDCARE WHICH HAD BEEN PAID FOR BY THE KIBBUTZ BECAME THE RESPONSIBILITY OF INDIVIDUAL FAMILIES THE DINING HALL WAS SHUT SAVING CLOSE TO A MILLION SHEKELS 364431 ANNUALLY ECONOMIC EQUALITY WAS A CORNERSTONE OF THE KIBBUTZ MOVEMENT FOUNDED BY JEWISH SOCIALIST PIONEERS IN 1910 MEMBERS WERE SUPPOSED TO WORK ACCORDING TO THEIR ABILITIES AND IN RETURN RECEIVE WHAT THEY NEEDED REGARDLESS OF THEIR CONTRIBUTIONS BUT EIN ZIVAN CAME TO THE CONCLUSION THAT INCREASING PRODUCTIVITY WOULD BE IMPOSSIBLE UNDER SUCH A RIGID ECONOMIC SYSTEM OUR PARENTS DIDN'T NEED MONEY AS A MOTIVATION THEY WERE MORE IDEALISTIC SAYS RUTI BARUCH A MEMBER OF THE KIBBUTZ'S MANAGERIAL COMMITTEE BUT THE WORLD IS DIFFERENT NOW PEOPLE WON'T WORK HARDER UNLESS THEY RECEIVE COMPENSATION FOR IT YOUNG PEOPLE WITH HIGHER EARNING POTENTIAL WEREN'T WILLING TO KEEP LIVING ON THE KIBBUTZ BEFORE MEMBERS GOT THE SAME ALLOWANCE FROM THE KIBBUTZ DEPENDING ON FAMILY SIZE WHETHER THEY WORKED INSIDE OR OUTSIDE THE SETTLEMENT AND REGARDLESS OF THE SIZE OF OUTSIDE SALARIES BUT AFTER A BITTER DEBATE THE MAJORITY VOTED FOR A NEW PROGRAM MEMBERS WORKING OUTSIDE THE KIBBUTZ STILL TURN THEIR SALARIES OVER TO THE KIBBUTZ BUT RECEIVE THE ENTIRE AMOUNT BACK AS AN ALLOWANCE AND THOSE WORKING INSIDE THE KIBBUTZ ARE PAID AS MUCH AS IT WOULD TAKE TO HIRE AN OUTSIDER TO DO THEIR JOB MORE THAN SIX MONTHS LATER EIN ZIVAN'S MEMBERS ARE STILL DIVIDED OVER THE CHANGE WENDY SEGAL A HIGH SCHOOL TEACHER SAYS HER FAMILY IS STRUGGLING FINANCIALLY UNDER THE NEW SYSTEM MY HUSBAND WORKS IN THE KIBBUTZ CHICKEN COOP AND HIS SALARY IS VERY LOW SAYS MS SEGAL IT'S AN INJUSTICE TO PAY HIM A SALARY LIKE HE'S 21 YEARS OLD AND JUST STARTING OUT HE'S SOMEONE WHO GAVE HIS ADULT LIFE TO WORKING IN THE KIBBUTZ WHO DIDN'T GET A CHANCE TO GO TO COLLEGE AND WHO NEVER EXPECTED TO HAVE TO DEVELOP QUALIFICATIONS TO FIND A JOB OUTSIDE THE KIBBUTZ THE KIBBUTZ DEFINITELY HAD AN ECONOMIC PROBLEM BUT I THINK THERE WERE LESS DRASTIC WAYS OF SOLVING IT SHE CONTINUED THE KIBBUTZ COULD HAVE GUARANTEED A MINIMUM WAGE AND THEN PAID MORE TO THOSE WHO WERE WILLING TO WORK EXTRA HOURS BUT THIS WAY YOU HAVE SOME FAMILIES WHO CAN'T MAKE ENDS MEET MENACHEM ROSNER A RESEARCHER AT HAIFA UNIVERSITY'S INSTITUTE FOR RESEARCH ON THE KIBBUTZ AND THE COOPERATIVE IDEA CONTENDS THAT EIN ZIVAN IS NO LONGER A KIBBUTZ BECAUSE WHILE ITS MEMBERS STILL SHARE IN OWNERSHIP OF KIBBUTZ PROPERTY IT NO LONGER MEETS ITS MEMBERS' NEEDS THIS MONTH THE UNITED KIBBUTZ MOVEMENT THE FEDERATION TO WHICH EIN ZIVAN BELONGS VOTED TO EJECT EIN ZIVAN FROM THE MOVEMENT IF IT DOESN'T OVERTURN THE REFORMS THE KIBBUTZ MOVEMENT NEEDS TO CHANGE AND BETTER ADAPT ITSELF TO THE NEW TECHNOLOGY AND THE NEW ECONOMIC SITUATION SAYS MUKY TSUR THE SECRETARY OF THE UNITED KIBBUTZ MOVEMENT BUT THE LIFESTYLE HAS LIMITS AND EIN ZIVAN CROSSED THE LINE WHEN IT BEGAN PAYING SALARIES MR GIVOL THE MASTERMIND OF THE REFORMS AT EIN ZIVAN SAYS OTHER KIBBUTZIM HAVE ALREADY CONTACTED HIM ABOUT ADOPTING A SIMILAR SYSTEM PEOPLE WHO LIVE ON A KIBBUTZ WEREN'T SUPPOSED TO HAVE TO LOOK FOR A JOB AND NO ONE EVER CONSIDERED WHAT WOULD HAPPEN IF A KIBBUTZ WENT BANKRUPT HE SAYS THE ASSUMPTION WAS THE KIBBUTZ WOULD LAST FOREVER WELL IT DIDN'T AND THIS IS THE DIRECTION IT HAS TO GO IN ORDER TO SURVIVE 9305260122 930526 CREDIT RATINGS S&P BOOSTS ITS RATING ON PACIFIC ENTERPRISES NEW YORK STANDARD & POOR'S CORP SAID IT RAISED ITS RATINGS ON PACIFIC ENTERPRISES' PREFERRED STOCK TO TRIPLEBPLUS FROM TRIPLEBMINUS PACIFIC ENTERPRISES WAS AT THE SAME TIME REMOVED FROM STANDARD & POOR'S CREDITWATCH LIST WHERE IT WAS PLACED MARCH 22 STANDARD & POOR'S SAID IT DIDN'T CHANGE ITS RATINGS ON THE COMPANY'S SOUTHERN CALIFORNIA GAS CO UNIT WHICH REMAIN SINGLEA FOR SENIOR UNSECURED DEBT AND PREFERRED STOCK AND A1 FOR COMMERCIAL PAPER THE RATING AGENCY SAID THERE IS ABOUT 2 BILLION OF TOTAL DEBT AND PREFERRED STOCK OUTSTANDING FOR THIS LOS ANGELESBASED HOLDING COMPANY INCLUDING THAT OF SOUTHERN CALIFORNIA GAS CO STANDARD & POOR'S SAID ITS UPGRADING OF PACIFIC ENTERPRISES' DEBT WAS BASED ON AN IMPROVED OUTLOOK FOR THE NATURAL GAS DISTRIBUTION BUSINESS THE AGENCY SAID SOUTHERN CALIFORNIA GAS'S PERFORMANCE MAY BE IMPROVED BY A RECENT REGULATORY COMMISSION THAT WILL REALLOCATE CERTAIN GAS TRANSMISSION COSTS NEXT YEAR STANDARD & POOR'S SAID IT MAY AT THAT TIME CONSIDER AN UPGRADE FOR BOTH PACIFIC ENTERPRISES AND SOUTHERN CALIFORNIA GAS 9305260121 930526 TECHNOLOGY & HEALTH NEXT LINES UP HP'S SUPPORT FOR ITS SOFTWARE BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL NEXT INC IN A MOVE TO BOLSTER ITS FLEDGLING SOFTWARE BUSINESS SAID IT AGREED TO WORK WITH HEWLETTPACKARD CO TO ADAPT NEXT'S SOFTWARE TO RUN ON SOME HP COMPUTERS THE REDWOOD CITY CALIF COMPANY HEADED BY APPLE COMPUTER INC COFOUNDER STEVEN JOBS ALSO ANNOUNCED IT HAS LINED UP A FEW MORE COMPUTER MAKERS THAT WILL OFFER NEXT SOFTWARE AS AN OPTION ON THEIR PERSONAL COMPUTERS AND AS EXPECTED NEXT SAID IT HAD BEGUN SHIPPING A VERSION OF ITS NEXTSTEP OPERATING SYSTEM SOFTWARE DESIGNED TO RUN ON PCS MADE WITH INTEL CORP MICROPROCESSORS NEXT'S MOVES TO ADAPT ITS SOFTWARE TO A RANGE OF COMPUTERS IS VITAL TO ITS NEW STRATEGY OF SURVIVING AS A SOFTWARE CONCERN THE COMPANY DUMPED ITS MONEYLOSING COMPUTERHARDWARE BUSINESS IN FEBRUARY YESTERDAY'S NEWS SHOWS THAT REPORTS OF OUR DEATH HAVE BEEN GREATLY EXAGGERATED SAID MR JOBS BUT MR JOBS'S COMPANY FACES THE DOMINANCE OF MICROSOFT CORP WHICH IS WORKING ON A NEW OPERATING SYSTEM WINDOWS NT NEXT'S MOVES COME AT A TIME WHEN THE INDUSTRY IS RIVETED ON WINDOWS NT AND THEREFORE NEXT CONTINUES TO FACE AN UPHILL BATTLE SAID PETER ROGERS AN ANALYST WITH ROBERTSON STEPHENS YESTERDAY HEWLETTPACKARD CONFIRMED IT IS WORKING WITH NEXT ON WAYS TO ALLOW NEXT SOFTWARE TO RUN ON HP MACHINES THE PALO ALTO CALIF ELECTRONICS COMPANY SAID IT WILL BEGIN OFFERING TO CUSTOMERS AS AN OPTION ITS WORKSTATIONS WITH THE NEXTSTEP SOFTWARE IN THE SECOND QUARTER OF 1994 HP ALSO SAID IT IS WORKING ON A NEXT SOFTWARE PRODUCT EXPECTED IN THE FOURTH QUARTER OF 1993 THAT WILL HELP MANAGE NETWORKS OF HP COMPUTERS NEXT ALSO SAID THAT DIGITAL EQUIPMENT CORP COMPAQ COMPUTER CORP AND NCR CORP AGREED TO OFFER NEXTSTEP AS AN OPTION TO CUSTOMERS EPSON AMERICA INC SAID IT WILL BEGIN SELLING THIS SUMMER A PC MODEL DESIGNED SPECIFICALLY TO RUN NEXT'S SOFTWARE SEPARATELY NEXT ALSO SAID IT HAS ADDED TWO DIRECTORS TO ITS BOARD LAWRENCE ELLISON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ORACLE CORP AND DANIEL H CASE III PRESIDENT AND COCHIEF EXECUTIVE OF HAMBRECHT & QUIST GROUP THE MOVE INCREASES THE BOARD TO FOUR MEMBERS FROM THREE NEXT'S FORMER CHIEF FINANCIAL OFFICER PETER VAN CUYLENBERG RESIGNED FROM THE BOARD IN APRIL 9305260120 930526 LETTERS TO THE EDITOR ASTUTE' I'LL ACCEPT IN HIS APRIL 23 POTOMAC WATCH COLUMN PAUL GIGOT QUOTED FROM MY EDITORIAL IN THE CURRENT AMERICAN PROSPECT AND DESCRIBED ME AS THE ASTUTE SOCIALIST WRITER THIS IS ODD SINCE I AND THE AMERICAN PROSPECT EMPHATICALLY DESCRIBE OURSELVES AS LIBERAL NOT SOCIALIST COULD THIS PERHAPS BE A CHEAP SHOT CLUMSILY IMPLYING THAT LIBERALS ARE REALLY SOCIALISTS SHOULD WE CONCLUDE THAT THE CONSERVATIVE MR GIGOT IS AN ASTUTE FASCIST WRITER 9305260119 930526 THIS TOWN'S LONGSTANDING IMAGE IS JUST RIGHT TO MILK FOR PUBLICITY BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL KANSAS CITY MO LOCALS HERE ARE SICK AND TIRED OF HEARING THIS HEARTLAND CENTER DENIGRATED AS A COW TOWN TO DISPEL THE IMAGE ONCE AND FOR ALL SOME CIVIC BOOSTERS RECENTLY RETAINED TWO BOVINE THESPIANS TO STAR IN A 60SECOND PROMOTIONAL FILM THE SPOT SHOWS THE COWS AMBLING PAST CULTURAL ATTRACTIONS IN A FUTILE SEARCH FOR ANOTHER COW AS VIOLINS PLAY IN THE BACKGROUND KANSAS CITY GOT THE COW TOWN MONIKER FROM ITS ROLE AS A MAJOR CATTLE CENTER AFTER THE CIVIL WAR THE STOCKYARDS ARE NO LONGER IN USE THOUGH AND YUPPIES IN BMWS OUTNUMBER COWBOYS AND CATTLE CARS THE METROPOLIS OF 15 MILLION PEOPLE ALSO BOASTS BOULEVARDS FOUNTAINS AND UPSCALE SHOPPING CENTERS BUT WORD ABOUT KANSAS CITY IS SO SLOW IN GETTING OUT THAT THE TOWN WAS PILLORIED RECENTLY BY THE SAN FRANCISCO MEDIA WHEN THE FOOTBALL 49ERS TRADED QUARTERBACK JOE MONTANA TO THE KANSAS CITY CHIEFS AMONG THE BARBS A SAN FRANCISCO NEWSPAPER RAN A CARTOON SHOWING MR MONTANA AND FAMILY BEING GREETED AT HIS NEW HOME BY DOROTHY TOTO AND OTHER WIZARD OF OZ CHARACTERS NEVER MIND THAT DOROTHY AND HER DOG WERE FROM KANSAS NOT MISSOURI TO SET THE RECORD STRAIGHT 2000POUND HEIFERS FLASH AND DELTA WERE PUT THROUGH THEIR PACES RECENTLY AS A CAMERA CREW RECORDED THEIR ADVENTURES THEIR FIRST STOP WAS THE COUNTRY CLUB PLAZA SHOPPING CENTER WHERE ONE COW CRASHED THROUGH A HOLDING PEN WHILE THE OTHER CHARGED CURTIS PICKERING WHOSE LOCAL VPR CREATIVE GROUP WAS DOING THE FILMING I THREW UP MY HANDS AND SCREAMED OUT OF FEAR AND THE COW ACTUALLY TURNED BACK AND WENT INTO THE CORRAL MR PICKERING SAYS PRODUCTION WAS ALSO DELAYED BRIEFLY AS ONE OF THE COWS GAVE BIRTH TO A CALF THE COWS MADE OTHER STOPS AT THE WORLDS OF FUN AMUSEMENT PARK THE STARLIGHT THEATER THE LOCAL FOOTBALL AND BASEBALL STADIUM COMPLEX AND THE NELSONATKINS MUSEUM OF ART WE WALKED THE COWS BY THE STATUE OF THE THINKER' AND THEY ACTUALLY LOOKED UP MR PICKERING SAYS AT THE LAST STOP THE COWS WERE LED PAST THE HEREFORD HOUSE RESTAURANT WITH ITS GIANT COWHEAD DISPLAY IN THE FILM THE COWS SPRINT AWAY IN SLOW MOTION AS A SIGN APPEARS READING KANSAS CITY DEFINITELY NOT A COW TOWN AND A COW MOOS FOR EMPHASIS 9305260118 930526 CLIMBING THE PEAK AGONY AND ECSTASY OF 200 CODE WRITERS BEGET WINDOWS NT BADGERED BY A DRIVEN GURU THEY FIGHT FATIGUE FEAR TO BUILD GRAND SYNTHESIS DREAD OF AN UNFIXABLE BUG BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL REDMOND WASH DAVID CUTLER WEARING WHITE REEBOKS WHITE TROUSERS AND A TSHIRT WITH THE LEGEND OVER THE LINE BLASTS THROUGH THE DOOR LEADING TO MICROSOFT CORP'S BUILD LAB MR CUTLER A STOCKY BALDING MAN WHO SHARES SOME CHARACTER TRAITS WITH CAPTAINS AHAB AND BLIGH IS CHECKING ON THE PROGRESS OF THE BIGGEST MOST COMPLEX AND POSSIBLY MOST IMPORTANT PROGRAM EVER DESIGNED FOR A DESKTOP COMPUTER HE IS NOT HAPPY IT IS 1020 MONDAY MORNING MAY 3 AND THE DAILY BUILD OF THE PROGRAM CALLED WINDOWS NT ISN'T FINISHED YET AS LEADER OF THE NT TEAM MR CUTLER INSISTS THAT A NEW BUILD OR TEST VERSION OF NT BE STITCHED TOGETHER ELECTRONICALLY EACH MORNING SO THAT HIS PROGRAMMERS CAN AS HE PUTS IT EAT THEIR OWN DOG FOOD MR CUTLER IS ANGRY ABOUT THE DELAY ANGRY ABOUT A BOTCHED TEST THE DAY BEFORE ANGRY AT THE WORLD AFTER GLARING AT A COMPUTER SCREEN HE STORMS OUT OF THE LAB LEAVING A DISTINCT CHILL TWO BUILDERS KYLE SHANNON AND ARDEN WHITE DIP INTO A KINGSIZE JAR OF ROLAIDS POPPING ONE EACH THE DAY HAS SOURED EARLY MINUTES LATER MR CUTLER RETURNS TO THE BUILD LAB LOOKING EVEN MORE UPSET YOU'RE WASTING THE WHOLE DAMN MORNING BY NOT HAVING THIS DAMN THING READY HE SNAPS THE NT LEADER DOESN'T BELIEVE IN BOTTLING UP EMOTION THE WAY YOU LET OFF STRESS IS TO LET IT OUT HE SAYS HE MEANS IT MR SHANNON POINTS TO A CIRCLE DRAWN ON THE WALL NEAR THE DOOR IT MARKS THE SPOT WHERE MR CUTLER ONCE UNLEASHED A VIOLENT KICK CRACKING THROUGH THE WALL AND INJURING HIS TOE FOR HIS 50TH BIRTHDAY A FEW MONTHS AGO MR CUTLER'S TEAM GAVE HIM A FRAMED PIECE OF HIS OFFICE WALL WHICH HE HAD DESTROYED IN A MOMENT OF RAGE IGNITED BY THE FAILURE OF A NEW BUILD TO RUN ON HIS COMPUTER MR CUTLER'S IMPATIENCE IS ILLMANNERED BUT UNDERSTANDABLE TIME IS ABOUT THE ONLY THING THAT MATTERS TO HIM AND THE ROUGHLY 200 DEVELOPERS AND TESTERS WHO ARE BRINGING NT TO LIFE THE PRODUCT ALREADY SIX MONTHS LATE WAS OFFICIALLY ANNOUNCED ON MONDAY AND MICROSOFT PLANS TO BEGIN SHIPPING HUNDREDS OF THOUSANDS OF COPIES TO CUSTOMERS WITHIN 60 DAYS FAILING TO MEET THAT DEADLINE OR SHIPPING A BUGRIDDLED NT WOULD MAR THE REPUTATION OF A COMPUTER PROGRAM CONSIDERED BY MANY TO BE THE MOST AMBITIOUS EVER TRIED CONSISTING OF A STAGGERING 43 MILLION LINES OF CODE AND COSTING MORE THAN 150 MILLION TO DEVELOP NT IS DESIGNED TO CONQUER NEW WORLDS FOR MICROSOFT AND ITS ALLIES NT'S SUPPORTERS HOPE THEY CAN USE THE PROGRAM TO EMPOWER NOT JUST SPEEDIER PERSONAL COMPUTERS BUT ALSO NEW KINDS OF PC NETWORKS THAT CAN DISPLACE FAR MORE EXPENSIVE MAINFRAMES AND MINICOMPUTERS WITH NT DIGITAL EQUIPMENT CORP AIMS TO BECOME A LEADING PC MAKER COMPAQ COMPUTER CORP A WORKSTATION MAKER AND AMERICAN TELEPHONE & TELEGRAPH CO'S NCR A MAKER OF INEXPENSIVE MAINFRAME SUBSTITUTES MICROSOFT'S CHIEF WILLIAM GATES III FONDLY HOPES NT CAN WIPE OUT THE FRANCHISE OF ANOTHER HUGELY SUCCESSFUL SOFTWARE PIONEER NOVELL INC BY MAKING NOVELL'S NETWORKING PROGRAMS SUPERFLUOUS NT ALSO OPENS A CRACK IN INTEL CORP'S NEARMONOPOLY ON MICROPROCESSORS FOR MACHINES THAT RUN PC SOFTWARE IMMENSE STAKES ARE RIDING ON NT BUT THE MAKING OF NT ALSO ILLUSTRATES HOW INNOVATION IN AN AGE OF TECHNOLOGICAL COMPLEXITY USUALLY REQUIRES DOGGED SYSTEMBUILDING AND AN ABILITY TO HOLD LARGE TEAMS TOGETHER WHILE ALLOWING EVEN CULTIVATING CONFLICT CONFLICT LIES AT THE CORE OF INNOVATION BECAUSE THERE ISN'T ALWAYS A UNIQUE WAY TO SOLVE A PROBLEM SAYS EMANUEL R PIORE A FORMER CHIEF SCIENTIST FOR INTERNATIONAL BUSINESS MACHINES CORP WHEN THERE'S NO CONFLICT A LAB IS NO GOOD THE STORY OF NT BEGINS IN THE LATE 1980S WHEN MICROSOFT HELD A GRIP ON THE BASIC OPERATING SYSTEM CALLED DOS THAT HAD COME TO DOMINATE PERSONAL COMPUTING AN OPERATING SYSTEM OR OS CONTROLS THE BASIC FUNCTIONS OF A COMPUTER PROVIDING ITS DISTINCT PERSONALITY AND POWERS DOS'S SUCCESS SENT MR GATES ON HIS WAY TO BECOMING THE RICHEST MAN IN AMERICA BUT HE AND HIS TOP AIDES DREAMED OF A MUCH MORE ADVANCED OPERATING SYSTEM ONE THAT COULD BECOME IN A SENSE PERSONAL COMPUTING'S LINGUA FRANCA FOR YEARS TO COME IT WOULD RUN AT GREATLY ENHANCED SPEEDS PROCESSING 32 BITS OF INFORMATION AT A TIME RATHER THAN DOS'S 16 PERMITTING THE USE OF GREATLY ENHANCED GRAPHICS IT WOULD CONTAIN EXTRAORDINARY SECURITY FEATURES WHICH ARE ESPECIALLY IMPORTANT TO CORPORATE CUSTOMERS IT WOULD STILL BE ABLE TO RUN THE MANY THOUSANDS OF SOCALLED APPLICATION PROGRAMS SUCH AS LOTUS 123 THAT HAVE BEEN WRITTEN FOR DOS IT COULD PERFORM MORE THAN ONE TASK AT A TIME AND IT WOULD LINK MANY DIFFERENT KINDS OF COMPUTERS AND HUNDREDS OF DIFFERENT KINDS OF PRINTERS AND OTHER GEAR IN A SINGLE SEAMLESS COMMAND SYSTEM THE SYSTEM THEY ENVISIONED WOULD ALSO BE PORTABLE OR ABLE TO RUN ON DIFFERENT CLASSES OF MICROPROCESSORS MAKING NT UBIQUITOUS ON MACHINES SUCH AS WORKSTATIONS SERVER MACHINES THAT LINK NETWORKS AND OTHER MIDRANGE COMPUTERS AND DESPITE ITS INEVITABLE COMPLEXITY THE SYSTEM WOULD BE RIGOROUSLY RELIABLE SOMETHING LIKE THIS ALREADY EXISTED ACTUALLY A HIGHEND COMPLEX EXPENSIVE SYSTEM CALLED UNIX USED MOSTLY BY SCIENTISTS AND ENGINEERS AT THE URGING OF NATHAN MYHRVOLD A KEY AIDE MR GATES AIMED TO BRING MOST OF ITS FEATURES TO THE PC MASSES IN 1988 HE FOUND THE MAN FOR THE MISSION IN MR CUTLER MR CUTLER WAS A LUMINARY AT DIGITAL THE PROGRAMMER WHO HAD LED THE TEAM THAT WROTE VMS THE OPERATING SYSTEM THAT FUELED DIGITAL'S GROWTH IN THE LATE 1970S BY LINKING TOGETHER A DIVERSE FAMILY OF COMPUTERS THIS WAS A FEAT IBM DIGITAL'S MAIN RIVAL HAD NEVER ACCOMPLISHED AND IT ENABLED DIGITAL TO BLOW A SUBSTANTIAL HOLE IN IBM'S COMMERCIAL COMPUTER SALES BUT AFTER ONE MORE BIG SUCCESS AT DIGITAL THE COMPANY KILLED MR CUTLER'S NEXT BIG PROJECT PROMPTING HIM TO QUIT IN 1988 HE WAS WORKING ON A DEAL TO START HIS OWN COMPANY WHEN MR GATES CALLED MR GATES FELT MR CUTLER MIGHT HAVE THE IDEAL SET OF SKILLS FOR CREATING A SUPERAMBITIOUS OPERATING SYSTEM THE MICROSOFT CHIEF MET WITH MR CUTLER AND CAME AWAY IMPRESSED WITH HIS KNOWHOW AND INTRIGUED BY HIS GRUFF PERSONALITY HE'S KNOWN MORE FOR HIS CODE THAN HIS CHARM MR GATES SAID THAT IS JUST WHAT MR GATES NO PUSHOVER HIMSELF WANTED AS IT HAPPENED MR CUTLER'S STYLE MESHED WELL WITH A MICROSOFT CORPORATE CULTURE THAT THRIVES ON CONFRONTATION FOR MR CUTLER ANGER AND PASSION WERE BOUND UP TOGETHER HE WOULD GET MAD EASILY MENACING COLLEAGUES WITH EXPRESSIONS SUCH AS I'M GOING TO WALK THROUGH YOUR WALL BUT HIS ZEAL TO FINISH A JOB INFECTED HIS COLLEAGUES AND HIS FREQUENT CONFRONTATIONS SERVED A FUNCTION OFTEN MISSING IN BIG PROJECTS INSTANT FEEDBACK INCAPABLE OF MISINTERPRETATION AND NOBODY DOUBTED THAT HE WAS A GIFTED PROGRAMMER WHICH IS A CURIOUS THING TO BE WRITING CODE FAR FROM BEING AN EXERCISE IN RATIONAL REDUCTIONISM IS MORE LIKE HITTING A BASEBALL PROGRAMMERS SAY TWO EQUALLY BRAINY PEOPLE MAY SIT DOWN AND TRY IT WHY ONE SUCCEEDS AND ANOTHER FAILS IS AS MYSTERIOUS AS ART SOME OF THE BEST PROGRAMMERS HAVE NEVER BEEN TO COLLEGE SOON AFTER HIS ARRIVAL MR CUTLER PRESENTED HIS VISION FOR NT AT MR GATES'S EXCLUSIVE ANNUAL RETREAT IN NOVEMBER 1988 AS MR CUTLER TALKED WELL INTO THE NIGHT WE SAT IN AWE LISTENING RECALLS JONATHAN LAZARUS VICE PRESIDENT FOR SYSTEMS MARKETING AT THE SAME TIME MR CUTLER WAS THE SORT OF LEADER WHO SLOGGED THROUGH THE MUD WITH HIS TROOPS YOU REALLY DON'T TAKE MR CUTLER'S OUTBURSTS PERSONALLY SAID MITCHELL DUNCAN HIS CHIEF BUILDER HE'S NOT ATTACKING YOUR CHARACTER DAVE GETS IN AT 6 AM HE'S THERE EVERY WEEKEND HE'S THERE IN THE TRENCHES IN THOSE TRENCHES WERE DIVISIONS OF ENGINEERS OFTEN PITTED AGAINST ONE ANOTHER IN A DELIBERATELY CACOPHONOUS SEARCH FOR ANSWERS TO PROGRAMMING QUESTIONS THAT GREW MORE COMPLEX WITH EACH ADDITIONAL LINE OF CODE EVENTUALLY THE NT PROGRAM REACHED THE EQUIVALENT OF 100000 SINGLESPACED PAGES OF TYPE FIRST AMONG EQUALS WERE THE DEVELOPERS OR CODE JOCKEYS MOSTLY MEN AND USUALLY TERRIBLY SURE OF THEMSELVES WHO WROTE BASIC INSTRUCTIONS NEXT IN THE PECKING ORDER CAME TESTERS WHO TRIED TO MAKE THOSE INSTRUCTIONS FAIL THEN CAME PRODUCT MANAGERS WHO THOUGHT ABOUT WHAT NT OUGHT TO DO AND BUILDERS WHO PUT THE PROGRAM TOGETHER TO START WORK ON NT MR CUTLER CREATED THREE BROAD UNITS ONE TO CREATE BASE LANGUAGE THAT MONITORS AND RUNS THE PROGRAM ONE TO CREATE ITS NETWORKING ABILITY AND ONE TO RUN ALL THE FEATURES A USER ACTUALLY SEES EACH WAS IN TURN BROKEN DOWN INTO FIVE TO 10 SUBGROUPS AS SMALL AS THREE OR FOUR PEOPLE EACH THE SMALLER THE BETTER SAID MR CUTLER WHO WANTED TO DELEGATE RESPONSIBILITY ELIMINATE SUPERVISORS AND DISCOURAGE THE BUREAUCRACY THAT OFTEN GROWS UP ALONGSIDE LARGE PROJECTS WITH AN ORGANIZATION IN PLACE HE BEGAN ASSEMBLING A PROTOTYPE OF AN OPERATING SYSTEM THAT COULD RUN ON DIFFERENT MICROPROCESSORS ONE OF MR CUTLER'S IMPORTANT EARLY DECISIONS IN JANUARY 1990 WAS TO PUT NT ON A POWERFUL NEW CHIP MADE BY UPSTART MIPS COMPUTER SYSTEMS INC AS WELL AS INTEL'S 386 CHIP AND ITS SUCCESSORS THE MOVE POTENTIALLY THREATENED THE PROFITS OF MIGHTY INTEL MICROSOFT'S LONGTIME PARTNER BY ENSURING THAT THE HUGE BODY OF PC SOFTWARE WOULD RUN ON CHIPS FROM RIVALS NT SOON PRESENTED MR GATES WITH A HUGE POLITICAL PROBLEM HE HAD PREVIOUSLY FORGED AN AGREEMENT WITH IBM UNDER WHICH THE TWO COMPANIES WOULD JOINTLY DEVELOP ANOTHER OPERATING SYSTEM THAT WOULD OFFER SOME ADVANCED FEATURES WHILE STILL RUNNING DOS IT WAS CALLED OS/2 TO MOLLIFY IBM MR CUTLER WAS TOLD TO GET NT TO RUN APPLICATIONS WRITTEN FOR OS/2 MR GATES WAS INSISTING ON SUCH COMPATIBILITY BECAUSE IT WAS IMPORTANT TO IBM BUT IT WAS A BUNDLE OF UNATTRACTIVE COMPROMISES THE NT TEAM SAW OS/2 AS A BAG OF DIRT SAYS STEVEN WOOD THE FIRST MICROSOFT PROGRAMMER TO JOIN NT AS IT TURNED OUT HOWEVER NT HELPED PRECIPITATE A TIMELY BLOWUP BETWEEN MICROSOFT AND IBM BY AUGUST 1990 MR GATES'S NEW GRAPHICAL COMMAND SYSTEM THAT MADE DOS PROGRAMS EASIER TO USE CALLED WINDOWS HAD TAKEN THE PC WORLD BY STORM SELLING 500000 COPIES A MONTH THE RUNAWAY SUCCESS LED MR GATES TO A BOLD STROKE MARRYING WINDOWS WITH NT WHICH OPENED A RIFT WITH IBM THAT COULDN'T BE HEALED IN EFFECT THIS MOVE MEANT MR CUTLER'S NEW MISSION WOULD BE TO DEVELOP NT SO IT RAN APPLICATIONS WRITTEN FOR WINDOWS AND DOS NOT OS/2 AND DOS IBM GOT THE MESSAGE THE COMPANY IN EFFECT DIVORCED MICROSOFT TAKING OS/2 IN SETTLEMENT WINDOWS HAS SINCE OUTSOLD OS/2 BY A 10TO1 RATIO MR GATES HAD HOPED HIS ATTRACTION TO WINDOWS WOULD NOT THREATEN HIS LONGSTANDING ASSOCIATION WITH IBM BUT WHEN THE RUPTURE BECAME INEVITABLE HE WROTE ASSOCIATES GLEEFULLY THAT MICROSOFT NO LONGER HAD TO ACCEPT IBM'S POOR CODE POOR DESIGN AND OTHER OVERHEAD THE SPLIT LIFTED THE IMPORTANCE OF NT AND BREATHED FRESH LIFE INTO THE TEAM SUDDENLY THEIR WORK MOVED FROM THE PERIPHERY TO THE HEART OF MR GATES'S VISION OF MICROSOFT WHERE EVERYTHING WE DO SHOULD FOCUS ON MAKING WINDOWS MORE SUCCESSFUL WITH THE PACE QUICKENING MR CUTLER'S DAILY BRIEFING SHIFTED FROM A SEMINAR ON IMAGINATIVE SOFTWARE SOLUTIONS TO A DISCUSSION OF HARD DEADLINES ARGUMENTS ERUPTED AS CHIEFS FROM VARIOUS PARTS OF THE SPRAWLING ORGANIZATION GRAPPLED WITH MR CUTLER'S CHIEF CONCERNS RELIABILITY PORTABILITY AND COMPATIBILITY TESTERS AND CODERS WAGED SOME OF THE BIGGEST BATTLES OVER RELIABILITY EVERY NIGHT THE TESTERS WOULD SUBJECT THE FRESH NT CODE TO ORDEALS ON 200 COMPUTERS STRESSES THAT WOULD RARELY OCCUR IN THE REAL WORLD TESTERS MIGHT ASK NT TO READ AND WRITE CONTINUOUSLY AND SIMULTANEOUSLY IN SEPARATE FILES ALL NIGHT LONG AT THE SAME TIME THEY MIGHT INSTRUCT THE PROGRAM TO CREATE A GRAPHIC ON SCREEN AND THEN WIPE IT OUT OVER AND OVER AGAIN A REPORT WOULD BE GENERATED IN THE MORNING AND ANY COMPUTERS THAT COULDN'T COMPLETE THE TEST THAT CRASHED OR HALTED WOULD BE INVESTIGATED ON A GREAT NIGHT ONLY 2 OF THE COMPUTERS WOULD FAIL PROGRAMMERS WERE HAPPY WHEN THE TESTS EXPOSED MISTAKES BUT THEY COMPLAINED LOUDLY WHEN THE TESTERS SEEMED TOO BRUTAL AND REVEALED TOO MANY FLAWS MR CUTLER WHILE CONVINCED THAT A GOOD WAY TO IMPROVE A SYSTEM WAS TO BREAK IT AT TIMES RESISTED THE ADVICE OF TESTERS FEELING THAT THEIR RIGOR WAS TOO MUCH ONE TESTER WHO ATTENDED THE DAILY MEETING SUBTLY RETALIATED BY REPEATEDLY SITTING IN MR CUTLER'S PREFERRED CHAIR AT THE CONFERENCE TABLE PURSUING THE GOAL OF PORTABILITY ALSO TESTED PATIENCE AND DISCIPLINE MR CUTLER WOULD HARANGUE DEVELOPERS WHEN THEY FAILED TO GIVE EQUAL ATTENTION TO BOTH THE INTEL AND THE MIPS VERSIONS HIS CREDO WAS TREAT MIPS THE SAME AS INTEL AND MAKE BOTH VERSIONS PLENTY FAST AT ONE POINT MR DUNCAN NT'S CHIEF BUILDER VIOLATED A CUTLER POLICY AGAINST SPLITTING THE BUILD INTO MIPS AND INTEL VERSIONS BECAUSE PROGRAMMERS EAGER TO GET THEIR HANDS ON THE LATEST INTEL CODE DEMANDED THAT HE DO IT WHEN MR CUTLER LEARNED HIS PRIME DIRECTIVE HAD BEEN VIOLATED HE JUST LAID INTO ME MR DUNCAN SAID AT A MEETING THE NEXT MORNING NT'S LEADER UPBRAIDED HIM FOR MAKING A UNILATERAL DECISION AND PROMPTLY OVERRULED IT NT EVERYONE AT MICROSOFT WELL UNDERSTOOD COULD SUCCEED ONLY IF OUTSIDE SOFTWARE DEVELOPERS FLOCKED TO THE SYSTEM SO A CRUCIAL PART OF THE TEAM WAS DEVOTED TO PROMOTING NT TO THE THOUSANDS OF LARGE AND SMALL COMPANIES THAT WOULD WRITE PROGRAMS FOR IT IN OCTOBER 1991 THE TEAM RELEASED A PACKAGE OF CODE GUIDELINES TO HELP PEOPLE WRITE PROGRAMS FOR THE INTEL VERSION OF NT IN DECEMBER A SIMILAR PACKAGE FOR MIPS WAS ISSUED THESE PRELIMINARY KITS HOWEVER WERE JUST APPETIZERS EAGER TO START WRITING PROGRAMS FOR NT SOFTWARE DEVELOPERS CRAVED THE MAIN MEAL A FINISHED KIT MICROSOFT PROMISED TO SUPPLY IT ON JULY 7 1992 AT A CONFERENCE IN SAN FRANCISCO EXPECTATIONS RAN HIGH NEVER BEFORE HAD SO MUCH TROUBLE BEEN TAKEN TO RAISE THE CURTAIN ON AN UNFINISHED OPERATING SYSTEM BUT NT WAS SO COMPLEX IT HAD THOUSANDS OF DEFECTS OR BUGS RAISING FEARS THAT THE KIT WOULD BE A DISGRACE IN AN ALLOUT EFFORT TO CLEAN UP NT BEFORE JULY 7 THE NT TEAM WENT ON A DEATH MARCH AS ONE MEMBER PUT IT THE WORKLOAD INCREASED THE BRIEFINGS AND BUILDS WERE EXTENDED TO SATURDAYS AND SUNDAYS DINNERS WERE BROUGHT IN AND A FAIR NUMBER BEGAN SLEEPING AT WORK UNDER DESKS IN LOUNGES AND ON THE FLOOR MANY ON THE NT TEAM ACTUALLY HAD NEVER FACED SUCH A DEADLINE IN THEIR LIVES FOR 18 OF THE STAFF THIS WAS THE FIRST JOB OUT OF COLLEGE JOHANNE CARON A 28YEAROLD FRENCH CANADIAN WHO WAS WRITING PART OF THE DOS SHELL OR THE LAYER OF INSTRUCTIONS THAT ALLOWED EXISTING DOS PROGRAMS TO RUN ON NT FOUND HERSELF ON THE EDGE HER BASIC CODE AFFECTED A CRUCIAL IF SOMEWHAT PEDESTRIAN PART OF NT AND IT DREW SCRUTINY IF ANYONE CRITICIZED HER SHE SAID I'D JUMP DOWN THEIR THROAT MEANWHILE HER MARRIAGE WAS FALLING APART I PUT ALL MY ENERGY IN MY JOB SHE SAYS I DIDN'T EVEN TRY TO SAVE THE MARRIAGE SPOUSES WERE NOT THE ONLY ONES WHO RESENTED THE KILLER PACE ONE SATURDAY MORNING IN JUNE JONATHAN MANHEIM DROPPED HIS SEVENYEAROLD SON OFF AT A SOCCER GAME ON HIS WAY TO MR CUTLER'S MORNING MEETING AS HE LEFT THE CAR THE BOY SAID I WOULD THROW AWAY ALL OF MY TOYS IF YOU WOULD BE HERE AFTER THE GAME THE WORDS HIT MR MANHEIM WHO WAS STRUGGLING TO MAKE A WINDOWS GRAPHICS PROGRAM COMPATIBLE WITH NT LIKE A KNIFE IN MY HEART I DON'T REMEMBER WHAT I SAID TO MY SON BUT I DIDN'T GO TO WORK THAT DAY MR CUTLER KEPT THE PRESSURE HIGH IN MOST SOFTWAREDEVELOPMENT PROGRAMS THE VARIOUS PIECES UNDER DEVELOPMENT ARE STITCHED TOGETHER ONLY ONCE IN A WHILE BY CONTRAST MR CUTLER INSISTED ON A FRESH BUILD PRACTICALLY EVERY DAY MEANING THAT EACH PIECE OF NT SOME CONTAINING HUNDREDS OF CHANGES HAD TO BE REASSEMBLED INTO A WHOLE WHICH WAS THEN SUBJECTED TO A NEW ROUND OF TESTING THIS SCRAMBLE FOR A FRESH BUILD LED TO MORE SKIRMISHES THESE PITTING PROGRAMMERS AGAINST BUILDERS WE HAVE ALL OF THESE COWBOY DEVELOPERS JUST SLINGING CODE LIKE CRAZY CALLING OUT WE NEED ANOTHER BUILD WE NEED ANOTHER BUILD GRUMBLED MR DUNCAN THE CHIEF BUILDER AGITATED COLLEAGUES EVEN ASSAILED MR DUNCAN WHILE HE SLEPT UNDER HIS DESK DURING THOSE NIGHTS HE NEVER MADE IT HOME HE BEGAN HANGING A SIGN ON HIS DOOR DO NOT DISTURB I'M SLEEPING UNDER MY DESK DURING THE DAY HE GREW DEFENSIVE BUYING CONSTRUCTION HARDHATS FOR HIMSELF AND HIS STAFF WHEN HE WORE HIS HAT PROGRAMMERS OFTEN SLAPPED IT A FEW PEOPLE BURNED OUT ELICITING LITTLE SYMPATHY FROM SOME COLLEAGUES WALTER MOORE 36 YEARS OLD WROTE CODE THAT MADE GRAPHICS APPEAR ON THE MOST WIDELY USED TYPE OF COMPUTER SCREEN THE CLEVERER THE CODE THE FASTER THE GRAPHICS FLASHED ON SCREEN THIS IS BASIC UNGLAMOROUS WORK BUT IF POORLY DONE IT CAN CAUSE MUCH CUSTOMER UNHAPPINESS DURING THE DEATH MARCH MR MOORE FOUND HIMSELF FALLING FURTHER AND FURTHER BEHIND WHEN FACED WITH AN ARDUOUS TASK HE FELT A STRONG URGE TO PLAY VIDEO GAMES A SYMPATHETIC MANAGER COVERED FOR HIM BUT HIS PERFORMANCE GOT SO BAD THAT COWORKERS BEGAN REFERRING TO HIS DEBILITATING CONDITION AS WALTHEIMERS SOONER OR LATER YOU LOSE IT MR MOORE SAID WHEN PEOPLE ASKED WHAT HAPPENED FINALLY THE HEAD OF MR MOORE'S UNIT TOLD HIM I DON'T THINK YOU'RE GOING TO PULL OUT OF THIS IN OCTOBER MR MOORE QUIT DESPITE THE NT TEAM'S CASUALTIES THE SOFTWARE DEVELOPERS' KIT WAS DELIVERED ON TIME AND THE THREEDAY CONFERENCE WAS A TURNING POINT SAID PETER WINSTON A DEVELOPER WHO WAS THERE IT MOVED NT FROM BEING ALL TALK TO BEING A VIABLE PRODUCT FIFTY THOUSAND KITS WERE SOLD AT 69 EACH AN UNHEARDOF NUMBER FOR AN UNFINISHED PRODUCT MR GATES STILL WORRIED ABOUT THE NT PROJECT SOME POTENTIAL CUSTOMERS WHO PREVIEWED IT TOLD HIM THEY WERE FAR FROM SOLD ON NT IT WAS TOO SLOW REQUIRED TOO MUCH EXTRA INTERNAL MEMORY AND HAD NOT PROVED IT COULD RUN WINDOWS APPLICATIONS THEY SAID IN LATE SEPTEMBER LAST YEAR MR GATES WAS COMPELLED TO ANNOUNCE THAT NT WOULD MISS ITS YEAREND SHIPPING DATE BEFORE LONG THE DATE WAS FORMALIZED AS IN THE FIRST HALF OF 1993 ON OCT 12 THE FIRST TEST VERSION OF NT WAS RELEASED TO ACTUAL CUSTOMERS MR GATES WAS NOT HAPPY WITH PARTS OF IT IN DECEMBER BEHIND CLOSED DOORS HE MET WITH THE NT TEAM'S LEADERS AND STERNLY REMINDED THEM THAT WHILE BRANDNEW FEATURES ARE ADMIRABLE IN A SOFTWARE PROGRAM NOTHING BOTHERS CUSTOMERS MORE THAN SEEING A FAMILIAR PROGRAM RUN MORE SLOWLY THAN IT DID BEFORE THE POINT WAS CLEAR BILL BASICALLY PRIORITIZED OUR WORK FOR US SAID MOSHE DUNIE WHO OVERSEES TESTING THAT'S HIS GENIUS HE CAN DISCERN THE WEAK POINTS MOST OF THOSE WEAK POINTS WERE ATTRIBUTABLE TO NT'S ENORMOUS SIZE NT WAS LIKE SOME GIANT INTERACTIVE JIGSAW PUZZLE IN WHICH EVERY ADDED PIECE COULD AFFECT THE PIECES THAT HAD GONE BEFORE OFTEN IN UNPREDICTABLE WAYS NT WAS DESIGNED TO WORK WITH MORE THAN 600 KINDS OF PRINTERS IT HAD TO BE ABLE TO RECOGNIZE AND COMMUNICATE WITH MODEMS POINTING DEVICES AND OF COURSE OTHER COMPUTERS IT HAD TO BE ABLE TO RUN POPULAR WINDOWS PROGRAMS ORIGINALLY WRITTEN IN ANOTHER LANGUAGE ALTOGETHER FLAWLESSLY TEAMS COULD LEARN A LOT BY WRITING CODE BUILDING PROGRAMS AND PUNISHING THEM WITH TESTS BUT EVEN MR CUTLER CONCEDED THAT NO ONE PERSON CAN GRASP THE COMPLEXITY OF NT AS THE MARCH RELEASE OF A SECOND TEST VERSION APPROACHED ANXIETIES FLARED PERFORMANCE WAS IMPROVING FEATURES WERE SET AND AN ASTONISHING NUMBER OF EXISTING APPLICATIONS AND PERIPHERAL HARDWARE ALREADY MESHED WITH NT BUT COMPATIBILITY WITH WINDOWS PROGRAMS A CRITICALLY IMPORTANT GOAL WAS A CONTINUING HEADACHE IT TURNED OUT NOT TO BE POSSIBLE AS SOME HAD ONCE HOPED TO CREATE A GENERIC TRANSLATOR TO HANDLE WINDOWS PROGRAMS SO A TEAM OF NINE PROGRAMMERS LED BY MARK FELTON PRODUCED WORKAROUND CODE EMBEDDING INDIVIDUAL TRANSLATORS INTO NT THAT WOULD WAKE UP AND GO TO WORK WHEN THEY SENSED THAT NT WAS BEING CALLED UPON TO RUN A PARTICULAR WINDOWS PROGRAM MR FELTON'S TEAM AIMED TO ADAPT 200 WINDOWS PROGRAMS TO NT BUT A LARGE PERCENTAGE PROVED BALKY TOP MANAGERS FRETTED THAT SOME CUSTOMERS MIGHT DISMISS NT ALTOGETHER IF IT DIDN'T RUN WINDOWS PROGRAMS WELL THE PRESSURE GREW MR FELTON WAS A CONFIDENT PROGRAMMER BOTH OF HIS PARENTS HAD BEEN PIONEERING SOFTWARE WRITERS IN HIS NATIVE ENGLAND AFTER THE SECOND WORLD WAR MR FELTON'S PROGRESS HOWEVER WASN'T ALWAYS STRAIGHTLINE FROM TIME TO TIME THINGS WOULD GO BACKWARD HE SAID AS CERTAIN WINDOWS PROGRAMS ACTUALLY RAN WORSE ON THE LATEST AND SUPPOSEDLY IMPROVED BUILD AND AS MORE WORKAROUNDS WERE NEEDED TO GET WINDOWS PROGRAMS TO RUN NT ALREADY HUGE KEPT GROWING IT WOULD BE NICE IF WE WERE SMALLER MR FELTON SAID BECAUSE FATTER CODE REQUIRES MORE MEMORY AND MORE MEMORY MEANS COSTLIER COMPUTERS MEANWHILE THOUSANDS OF BUGS OR CODING ERRORS MENACED NT BUGS WERE RANKED IN PRIORITY WITH PRIORITY ONE AND SHOWSTOPPERS THE KIND THAT COULD CRASH A SYSTEM OR SWALLOW UP DATA RECEIVING THE MOST ATTENTION FIXES FOR THE BUGS OFTEN THEMSELVES SPAWNED MORE BUGS EVEN A PROGRAMMER AS SEASONED AS MR CUTLER WOULD NOT DISMISS THE POSSBILITY THAT NT SOMEHOW COULD BECOME TRAPPED IN A WEIRD INFINITE LOOP WHEREIN FIXES SPAWNED THEIR OWN PARALYZING BUGS IT HAD HAPPENED TO OTHERS THE HISTORY OF SOFTWARE IS LITTERED WITH NOTORIOUS PROJECTS THAT WERE ABANDONED IN DISGUST SUCH DEFEATS CAUSED CAREERS TO DISSOLVE IN RIDICULE WHEN A BUG IS DISCOVERED THINGS CAN LOOK SO BAD MR CUTLER SAYS THEN SOMEONE FIXES A BUG AND EVERYTHING JUST TURNS AROUND ADDS DAVID THOMSON ONE OF HIS TOP AIDES EVERY MORNING WE LOOK AT BUG COUNT IF THE COUNT INCREASES FOR TOO LONG WE ARE DOOMED PATIENCE THINNED ONE SATURDAY EVENING MR CUTLER CHIDED MS CARON FOR NOT FILING A FIX EARLIER IN THE DAY SO THAT IT COULD BE SUBJECTED TO STRESS TESTING HE ASKED HER TO EXPLAIN THE DERELICTION I WAS AT KARATE CLASS KICKING BUTT SHE SHOT BACK ELICITING A STUNNED OK FROM MR CUTLER AS THE NT TEAM POUNDED DOWN THE HOME STRETCH IT BECAME CLEAR THAT THE PROJECT WOULD YIELD A MESSY IF SUCCESSFUL COMPROMISE RATHER THAN SOME PARAGON OF CODING PERFECTION IN THE LAST WEEK OF APRIL FOR INSTANCE THE TEAM FIXED A STAGGERING 1132 BUGS BUT FOUND 713 NEW BUGS SERIOUS ENOUGH TO WARRANT FIXING THE NT PROGRAM JUST UNVEILED CONTAINED SOME BUGS AND A FEW WILL ALMOST CERTAINLY REMAIN WHEN THE FINAL RELEASE IS SHIPPED WITHIN 60 DAYS THE CHOICES ARE STARK NOW SAID MARK LUCOVSKY ONE OF THE FIRST NT CODE WRITERS IS IT A PROBLEM WE FIX IS IT A PROBLEM WE POSTPONE IS IT A PROBLEM WE WORK AROUND THE MOST SERIOUS PROBLEMS INVOLVE INCOMPATIBILITIES BETWEEN NT AND WELLKNOWN WINDOWS PROGRAMS AT THE MOMENT FOR INSTANCE A POPULAR DESKTOP PUBLISHING PROGRAM CALLED ALDUS PAGEMAKER WON'T PRINT UNDER CERTAIN CIRCUMSTANCES BECAUSE GLITCHES LIKE THIS ARE LIKELY TO BE POUNCED UPON IN RECENT WEEKS MORE TESTERS AND BUGFIXERS HAVE BEEN ASSIGNED TO THE PROBLEM OF WINDOWS COMPATIBILITY AS OF EARLY MAY MR FELTON'S CLEANUP CREW HAD 80 OF THE 200 SELECTED WINDOWS APPLICATIONS TURNING IN GOOD OR EXCELLENT PERFORMANCES ON NT BUT THE OTHER 20 WERE CLASSED AS BAD OK OR BOMB STILL PAUL MARITZ THE MICROSOFT SENIOR VICE PRESIDENT OVERSEEING THE NT PROJECT SAYS THAT WE'VE GOT THE PROBLEM LICKED MR GATES FOR HIS PART THINKS NT ABSOLUTELY MET THE GOALS WE SET FOR IT THOUGH HE WISHES THE CODE HAD NOT GROWN SO LARGE HE WANTED NT TO RUN PCS WITH EIGHT MEGABYTES OF RANDOMACCESS MEMORY BUT CONCEDES THAT IN MOST CASES IT WILL DEMAND 12 TO 16 MEGABYTES COMPROMISE OR NOT NT IS VIEWED AS A HIT BY INDUSTRY OBSERVERS BECAUSE IT ACCOMPLISHES ENOUGH OF MICROSOFT'S MAJOR GOALS FOR NETWORKING POWER RELIABILITY COMPATIBILITY AND PORTABILITY TO MAKE LIFE DIFFICULT FOR ITS RIVALS AND PROVIDE AN OPERATING SYSTEM THAT WILL LAST THROUGH THE END OF THE DECADE MR GATES PREDICTS THAT ONE MILLION COPIES OF NT WILL BE SOLD OVER THE NEXT YEAR AT AN INITIAL LIST PRICE OF 295 FOR OWNERS OF WINDOWS YOU'D HAVE TO SAY THAT NT IS A SURE THING SAYS STEWART ALSOP EDITOR OF THE TRADE WEEKLY INFOWORLD THE ONLY QUESTION IS HOW SURE IS IT THE WHOLE FUTURE OF PERSONAL AND ORGANIZATIONAL COMPUTING OR JUST A PART MR CUTLER IS WITHHOLDING JUDGMENT ON THE RESULT HE SAYS HE IS VERY ADAMANT ABOUT NOT TAKING STOCK YET YOU DON'T TAKE STOCK WHEN YOU HAVEN'T SHIPPED WE'RE NOT DONE UNTIL NT IS ON THE RETAIL SHELVES OTHERS SAY MR CUTLER CAN ALREADY TAKE A BOW GORDON BELL A RENOWNED COMPUTER DESIGNER AND ONE OF MR CUTLER'S MENTORS THINKS THAT WHILE THE NT CHIEF'S METHODS WERE HARSH IT'S PROBABLY THE ONLY STYLE THAT'S GOING TO MAKE IT IN A PROJECT LIKE THIS I DON'T THINK THERE'S ANYBODY ELSE IN THE WORLD WHO COULD'VE BUILT NT NO ONE ELSE HAS THE INCREDIBLE FOCUS AND STAMINA REQUIRED AS FOR MR CUTLER'S TROOPS THEY ARE DIVIDED IN THEIR FEELINGS ABOUT THE FUTURE MANY EAGERLY ANTICIPATE WORKING ON THE NEXT VERSION OF NT WHILE OTHERS SENSE THAT A CHAPTER OF THEIR LIVES HAS ENDED SOME ARE TIRED ALMOST TO THE BREAKING POINT AFTER NEARLY TWO YEARS IN SHIP MODE WITH ONE DEADLINE AFTER ANOTHER LOOMING PEOPLE ARE REALLY WORN OUT SAYS CHARLES WHITMER A GRAPHICS PROGRAMMER A LOT OF PEOPLE ARE ANGRY TIRED AND BURNED OUT 9305260117 930526 ICF INTERNATIONAL NAME CHANGE FAIRFAX VA ICF INTERNATIONAL INC SAID IT WILL CHANGE ITS NAME TO ICF KAISER INTERNATIONAL INC EFFECTIVE JUNE 26 THE CONSULTING ENGINEERING AND CONSTRUCTION SERVICES COMPANY SAID THE NAME CHANGE REFLECTS COMPLETION OF A FOURYEAR PLAN TO MERGE VARIOUS PARTS OF THE COMPANY AS WELL AS THE 1988 ACQUISITION OF KAISER ENGINEERS OF OAKLAND CALIF ICF HAD GROSS REVENUE EXCEEDING 675 MILLION IN ITS MOST RECENT FISCAL YEAR ICF ALSO SAID MAJ GEN PETER OFFRINGA DEPUTY CHIEF OF ENGINEERS FOR THE US ARMY CORPS OF ENGINEERS WILL JOIN THE OAKLAND UNIT IN JUNE AS EXECUTIVE VICE PRESIDENT OF TECHNICAL OPERATIONS A NEW POSITION 9305260116 930526 WHO'S NEWS FEDERAL NATIONAL MORTGAGE ASSOCIATION FEDERAL NATIONAL MORTGAGE ASSOCIATION WASHINGTON WILLIAM G EHRHORN 44 YEARS OLD WAS ELECTED SENIOR VICE PRESIDENT MORTGAGE OPERATIONS FOR THIS PROVIDER OF HOME MORTGAGE FUNDS HE SUCCEEDS LYNDA HORVATH WHO HAS BEEN NAMED SENIOR VICE PRESIDENT CORPORATE DEVELOPMENT FOR THE PAST EIGHT YEARS MR EHRHORN HAS BEEN AN EXECUTIVE AT NOMURA SECURITIES INTERNATIONAL MOST RECENTLY AS EXECUTIVE VICE PRESIDENT AND DIVISION MANAGER FOR OPERATIONS AUTOMATION MANAGEMENT SECURITIES LENDING AND THE TRUST CO HE ALSO WAS A MEMBER OF NOMURA'S MANAGEMENT COMMITTEE 9305260115 930503 FIGHTING WORDS GAY LESBIAN GROUPS SEEK TO EXPUNGE BIAS THEY SEE IN LANGUAGE ONE FOCUS OF RIGHTS DEBATE IS THE DEBATE ITSELF CRITICS PERCEIVE ORWELLIAN CANT BI BISEXUAL OR OMNISEXUAL BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL DO GAY PEOPLE HAVE A SEXUAL PREFERENCE OR A SEXUAL ORIENTATION TOWARD MEMBERS OF THE SAME SEX DO LAWS THAT PROTECT HOMOSEXUALS FROM DISCRIMINATION INVOLVE CIVIL RIGHTS OR SPECIAL RIGHTS IS THERE A HOMOSEXUAL AGENDA OR ARE THERE ONLY GAYLESBIAN GOALS WHAT'S THE DIFFERENCE PLENTY AS AMERICA GRAPPLES WITH THE ROLE OF GAY MEN AND LESBIANS IN SOCIETY FROM THE MILITARY TO THE WORKPLACE TO THE FAMILY A WAR OF WORDS IS BEING WAGED TO SHAPE PUBLIC PERCEPTIONS AND EVEN PUBLIC POLICY IT'S NOT JUST A MATTER OF SEMANTICS WORDS REPEATED HUNDREDS AND THOUSANDS OF TIMES IN THE MEDIA AND IN EVERYDAY CONVERSATIONS CREATE INDELIBLE IMAGES EVEN WHEN DISTINCTIONS AREN'T ALWAYS OBVIOUS LANGUAGE DOESN'T SHAPE THE CAMPAIGN IT IS THE CAMPAIGN SAYS WILL PERKINS FOUNDER OF A CONSERVATIVE COLORADO GROUP THAT LAST NOVEMBER HELPED PASS A STATE CONSTITUTIONAL AMENDMENT BARRING LAWS THAT SPECIFICALLY PROTECT HOMOSEXUALS FROM DISCRIMINATION IN SAYING THAT GAY PEOPLE ARE SEEKING SPECIAL RIGHTS THROUGH SUCH LEGISLATION HIS GROUP SUGGESTED THAT HOMOSEXUALS WERE SEEKING NOT EQUAL PROTECTION BUT MORE PROTECTION THAN OTHER CITIZENS ALTHOUGH IT MAY SEEM SUBTLE THE FACT IS THAT THE CHOICE OF WORDS AND PHRASES DEFINITELY INFLUENCES AND SHAPES PUBLIC OPINION AGREES ROBERT BRAY SPOKESMAN FOR THE NATIONAL GAY AND LESBIAN TASK FORCE THE SPECIAL RIGHTS TAG WHICH GAY GROUPS INSIST IS INACCURATE AND UNFAIR INFLUENCED THE OUTCOME IN COLORADO HE SAYS GAY ACTIVISTS ARE SEEKING TO ELIMINATE A SMALL LEXICON FROM PUBLIC DISCOURSE EVERYTHING FROM SEXUAL PREFERENCE WHICH IMPLIES THAT GAY PEOPLE CHOOSE HOMOSEXUALITY TO HOMOSEXUAL AGENDA WHICH SUGGESTS HIDDEN MOTIVES TO ACKNOWLEDGED HOMOSEXUAL WHICH SUGGESTS A FAULT TO BE ADMITTED TO INNOCENT AIDS VICTIM WHICH IMPLIES SOME ARE GUILTY TO HOMOSEXUAL LIFESTYLE WHICH EVOKES THE IMAGE OF PROMISCUOUS DRAG QUEENS CRITICS RESPOND THAT GAY AND LESBIAN GROUPS ARE ENGAGING IN ORWELLIAN DOUBLESPEAK IT MAY BE AN ATTEMPT TO KEEP FROM STIGMATIZING THEM BUT IT'S ALSO AN ATTEMPT TO KEEP PEOPLE FROM CALLING THEM WHAT THEY ARE CONTENDS BARRY GROSS A PHILOSOPHY PROFESSOR AT YORK COLLEGE IN NEW YORK AND AN OFFICIAL OF THE NATIONAL ASSOCIATION OF SCHOLARS EVERY TIME YOU CORRUPT LANGUAGE IT'S BAD THE LINGUISTIC BATTLE GOES BACK SEVERAL DECADES STARTING WITH THE WORD GAY ITSELF AS AN ADJECTIVE WITH SEXUAL OVERTONES THE WORD ACTUALLY WAS FIRST APPLIED TO HETEROSEXUAL MEN GAY LOTHARIOS WHO LED ADVENTUROUS OR IMMORAL LIVES THE FIRST PUBLISHED USE OF GAY TO MEAN HOMOSEXUAL GOES BACK ONLY TO 1935 ACCORDING TO THE OXFORD ENGLISH DICTIONARY WHICH CITES AN AMERICAN GLOSSARY OF UNDERWORLD AND PRISON SLANG BY THE 1950S HOMOSEXUAL MEN HAD BEGUN USING IT AS A CODE WORD THEN AT THE BEGINNING OF THE GAYRIGHTS MOVEMENT SOME 25 YEARS AGO IT WAS PUBLICLY ADOPTED BY ACTIVISTS TO COMBAT NEGATIVE CONNOTATIONS OF THE WORD HOMOSEXUAL THE TERM WAS CREATED BECAUSE THE PSYCHOLOGY PROFESSION AS PART OF NUMEROUS PRONOUNCEMENTS PONTIFICATED THAT HOMOSEXUALS WERE PERPETUALLY SAD AND UNHAPPY INDIVIDUALS SAYS ARTHUR C WARNER DIRECTOR OF THE AMERICAN ASSOCIATION FOR PERSONAL PRIVACY A GROUP THAT ADVOCATES SEXUAL CIVIL LIBERTIES SO THE WORD GAY' WAS CREATED TO TRY TO SURMOUNT THAT WITHIN AND AMONG HOMOSEXUAL GROUPS OF COURSE THERE ARE DISPUTES AND POWER STRUGGLES ABOUT ACCEPTABLE LANGUAGE MANY HOMOSEXUAL WOMEN FOR EXAMPLE REJECT THE WORD GAY AND INSIST ON BEING CALLED LESBIANS FROM THE GREEK ISLAND LESBOS WHERE THE POETESS SAPPHO WROTE VERSES OF LOVE TO WOMEN GAY CAME TO STAND FOR MEN THEY SAY HAVING A DIFFERENT NAME GIVES LESBIANS A STRONGER IDENTITY THE VISIBILITY OF OUR PART OF THE COMMUNITY IS EXTREMELY IMPORTANT EXPLAINS NADINE SMITH WHO HELPED ORGANIZE THE MARCH ON WASHINGTON IN SUPPORT OF HOMOSEXUAL CAUSES ON APRIL 25 IT'S NOT JUST A MATTER THAT WE WANT PEOPLE TO KNOW WE EXIST IT GOES BEYOND THAT BEING INVISIBLE IMPACTS OTHER THINGS SO LITTLE IS KNOWN ABOUT LESBIANS AND HIV FOR EXAMPLE WHEN A GROUP IS INVISIBLE YOU DON'T DO STUDIES ON THEIR HEALTH MORE CONTENTIOUS IS THE REEMERGENCE OF THE WORD QUEER SOME MILITANT GAY MEN PROUDLY USE THE WORD AS A WAY OF RECLAIMING IT FROM GAYBASHERS AND SIGNALING THEIR INTENT TO BE CONFRONTATIONAL IN COMBATING BIAS SIMILARLY SOME LESBIANS PREFER DYKE MS SMITH NOTES THAT LESBIANS WHO CALL THEMSELVES DYKES DON'T CARE WHETHER SOMEONE IS OFFENDED WITH WHO THEY ARE DYKES ARE REBELLIOUS STRONG OTHER GAY MEN AND LESBIANS OBJECT TO THESE WORDS SAYING THEY ARE PEJORATIVE NO MATTER WHO USES THEM AND REINFORCE NEGATIVE STEREOTYPES QUEER' IS VERY HARD FOR ME I WINCE WHEN I SEE IT OR HEAR IT SAYS JOSEPH DECOLA A GAY NEW YORKER EVEN THOUGH I UNDERSTAND IT'S ABOUT DENYING A WEAPON TO BIGOTS BISEXUALS ALSO HAVE DIFFERENT TERMS TO DESCRIBE THEMSELVES SOME PREFER TO BE CALLED OMNISEXUAL' SOME BI' INSTEAD OF BISEXUAL' SOME PREFER NOT TO BE LABELED SAYS GERRIE BLUM A BISEXUAL ACTIVIST IN NEW YORK THE IDEA OF OMNISEXUAL IS THAT SEXUALITY IS FLUID WITH SOME PEOPLE BEING VARIOUSLY HETEROSEXUAL HOMOSEXUAL AND BISEXUAL AT DIFFERENT PERIODS IN THEIR LIVES SHRINKING BISEXUAL TO BI REDUCES THE FOCUS ON PEOPLE'S SEXUALITY NATURALLY GAY AND LESBIAN GROUPS KEEP A SHARP EYE ON THE POPULAR PRESS TO MONITOR THE PROGRESS OF THEIR CAMPAIGN AND THEY AREN'T PARTICULARLY PLEASED BY WHAT THEY SEE MOST PUBLICATIONS ARE EITHER MIXED OR BAD SAYS ELLEN CARTON EXECUTIVE DIRECTOR OF THE NEW YORK CHAPTER OF THE GAY & LESBIAN ALLIANCE AGAINST DEFAMATION A MEDIA WATCHDOG GROUP WHILE THE MEDIA USE PROPORTIONATELY LESS PEJORATIVE LANGUAGE THAN IN THE PAST SHE SAYS INCREASED REPORTING ON GAY ISSUES MEANS THAT UNWANTED PHRASES APPEAR MORE OFTEN THE NEW YORK TIMES A FEW YEARS AGO CHANGED ITS STYLE FROM HOMOSEXUAL TO GAY BUT STILL SOMETIMES USES THE WORD HOMOSEXUAL MS CARTON SAYS GAY AND LESBIAN GROUPS OBJECT THAT THE WORD PLACES UNDUE EMPHASIS ON THEIR SEXUALITY AND IGNORES THE REST OF THEIR LIVES THE TIMES IS ALSO MIXED ON USING PREFERENCE' VERSUS ORIENTATION' MS CARTON ADDS THE WALL STREET JOURNAL SEVERAL YEARS AGO BEGAN ALLOWING GAY AS AN ADJECTIVE MEANING HOMOSEXUAL BUT REPORTERS STILL AREN'T SUPPOSED TO USE GAY AS A NOUN THE JOURNAL DOESN'T HAVE A SPECIFIC STYLE FOR PREFERENCE VERSUS ORIENTATION BUT IN PRACTICE USES ORIENTATION FAR MORE OFTEN LANGUAGE EVOLVES POLITICALLY IN MANY AREAS OF COURSE IN THE EARLY YEARS OF THE CIVIL RIGHTS MOVEMENT BLACKS DEBATED WHETHER TO SAY THE GOAL WAS INTEGRATION OR DESEGREGATION SOME FEARED THAT INTEGRATION WOULD BE TOO SCARY A CONCEPT FOR WHITE PEOPLE TO HANDLE IN THE ABORTION WARS ABORTIONRIGHTS ADVOCATES OBJECT TO THE LABEL PROABORTION AND ASK TO BE CALLED PROCHOICE SIMILARLY THEIR OPPONENTS DESCRIBE THEMSELVES NOT AT ANTIABORTION BUT AS PROLIFE IN DEBATES ABOUT ENVIRONMENTAL POLICY AN OFTEN TOUCHY ISSUE IS WHETHER A PARTICULAR PIECE OF REAL ESTATE SHOULD BE CALLED A SWAMP OR A WETLAND DOES IT MAKE A DIFFERENCE SOMETIMES ONE LINGUISTIC BATTLE THAT GAYRIGHTS GROUPS LARGELY HAVE WON AND THAT SHOWS THE LINK BETWEEN LANGUAGE AND POLICY WAS OVER THE TERM INNOCENT AIDS VICTIM BY MAKING DISTINCTIONS AMONG THE WAYS PEOPLE CONTRACTED AIDS THE PHRASE REINFORCED ANTIHOMOSEXUAL ATTITUDES AND SHAPED POLICIES MR BRAY SAYS CIRCLE K CORP BEFORE COMING UNDER SHARP PUBLIC CRITICISM IN 1988 LIMITED HEALTHCARE COVERAGE FOR NEW EMPLOYEES WHO CONTRACTED AIDS AS A RESULT OF PERSONAL LIFESTYLE DECISIONS BUT NOT FOR OTHERS SIMILARLY MEMBERS OF CONGRESS CITING INNOCENT VICTIMS IN THE LATE 1980S USED THEIR INFLUENCE TO BLOCK SOME FUNDING OF AIDS EDUCATION FOR GROUPS THAT PROMOTE HOMOSEXUAL ACTIVITY THE INNOCENT VICTIM' MENTALITY SET UP THIS DICHOTOMY WHEN WE WERE ABLE TO EDUCATE THE PRESS NOT TO USE INNOCENT VICTIMS' WE SAW CONGRESS BACK OFF MR BRAY SAYS PERHAPS THE NEWEST TERM OF CONTENTION IS SPECIAL RIGHTS WHETHER IT BECOMES MAINSTREAM USAGE COULD HELP DECIDE THE FATE OF SOCALLED GAY RIGHTS MEASURES BEING CONSIDERED IN A GROWING NUMBER OF CITIES AND STATES CRITICS OF SUCH LAWS ARGUE THAT SPECIAL RIGHTS IS A FAIR EXPRESSION BECAUSE IT IS TRUE HOMOSEXUALS ALREADY HAVE THE SAME RIGHTS AS ALL OTHER AMERICANS THEY SAY AND ARE SEEKING SOMETHING MORE SUCH LAWS WOULD MAKE GAY PEOPLE THE ONLY GROUP OF INDIVIDUALS IN THE COUNTRY THAT WOULD RECEIVE MINORITY STATUS BASED ON SEXUAL BEHAVIOR AND PREFERENCE ADULTERERS WOULD NOT PEOPLE WHO HAVE SEX BEFORE MARRIAGE WOULD NOT POLYGAMISTS WOULD NOT PEOPLE WHO ENGAGE IN SADOMASOCHISM WOULD NOT SAYS RALPH REED JR EXECUTIVE DIRECTOR OF THE CHRISTIAN COALITION EVEN SOME MINORITY GROUP LEADERS HAVE DEFENDED USE OF THE TERM SAYING THAT GAY AND LESBIAN GROUPS ARE INDEED SEEKING A SPECIAL STATUS UNDER CIVIL RIGHTS LAWS GAY AND LESBIAN ACTIVISTS COUNTER THAT THE PHRASE IS MISLEADING BECAUSE IT IMPLIES THAT THEY WANT PREFERENTIAL TREATMENT WHEN IN FACT ALL THEY WANT IS EQUAL PROTECTION FROM DISCRIMINATION JUST AS OTHER MINORITY GROUPS HAVE BEEN GRANTED SUCH PROTECTION THUS WHAT THEY ARE SEEKING ARE CIVIL RIGHTS AS FOR THE DISTINCTION BETWEEN SEXUAL PREFERENCE AND SEXUAL ORIENTATION WHILE IT MAY BE LOST ON SOME GAY GROUPS SAY IT ISN'T SIMPLY LINGUISTIC FAR MORE PEOPLE WHO THINK HOMOSEXUALITY IS A CHOICE DISAPPROVE OF HOMOSEXUALS AND GAYRIGHTS LAWS THAN DO PEOPLE WHO BELIEVE HOMOSEXUALITY IS INNATE GAY ACTIVISTS SAY THERE IS SOME SCIENTIFIC EVIDENCE THAT SEXUALITY IS DETERMINED BIOLOGICALLY OTHERS ADD THAT IT ALSO MAY BE INFLUENCED BY ONE'S ENVIRONMENT IN EARLY CHILDHOOD EITHER WAY AN INDIVIDUAL HAS NO CHOICE THUS THE USE OF SEXUAL PREFERENCE PERPETUATES DISCRIMINATION IF IT IS A MATTER OF CHOICE THAT NATURALLY EXPOSES GAY PEOPLE TO THE CHARGE THAT THESE SINFUL PEOPLE DELIBERATELY CHOOSE SINFUL WAYS EXPLAINS DR WARNER OF THE PRIVACY ASSOCIATION IF IT'S AN ORIENTATION IT'S NO DIFFERENT THAN LEFTHANDEDNESS CRITICS RESPOND THAT RESEARCHERS HAVEN'T DETERMINED WHETHER HOMOSEXUALITY IS INNATE ABSENT PROOF THEY ADD THE EFFORT TO BAN SEXUAL PREFERENCE IS AN ATTEMPT TO INFLUENCE PUBLIC OPINION GAY GROUPS ALSO OBJECT THAT HOMOSEXUAL LIFESTYLE FAILS TO RECOGNIZE THAT HOMOSEXUALS LIKE HETEROSEXUALS HAVE A VARIETY OF LIFESTYLES I SEE THAT IN MAINSTREAM PRESS REGULARLY WHAT DOES THAT MEAN THAT ALL GAYS DRESS UP IN DRAG AT HALLOWEEN AND PARADE AROUND ASKS MR BRAY SIMILARLY ACTIVISTS INSIST HOMOSEXUAL AGENDA IS UNFAIR IT SUGGESTS SOMETHING SUSPICIOUS OR NEFARIOUS ABOUT PEOPLE WITH HIDDEN PLANS SAYS WAYNE DYNES A PROFESSOR AT HUNTER COLLEGE IN NEW YORK AND AN EXPERT ON THE LEXICON OF HOMOSEXUALITY RIDICULOUS CRITICS CONTEND THEY SAY THERE IS AN AGENDA AND CITE USE OF THE WORD BY A GAY ACTIVIST IN A 1987 SPEECH TO THE NATIONAL PRESS CLUB TO DESCRIBE GOALS THAT INCLUDED LAWS RECOGNIZING HOMOSEXUAL RELATIONSHIPS AND LEGALIZING GAY PEOPLE IN THE MILITARY SO HOW CAN GAY GROUPS OBJECT TO THE WORD AGENDA WHEN I SAY AGENDA I'M TALKING SERIOUS WELLREASONED GOALS WHERE PEOPLE WANT TO GO EXPLAINS WILLIAM LEAP AN ANTHROPOLOGY PROFESSOR AND LANGUAGE EXPERT AT AMERICAN UNIVERSITY WHEN THE RIGHT USES IT HE CONTENDS IT MEANS PEOPLE AT NIGHT DRESSED IN BLACK ROBES WHO SODOMIZE FOURYEAROLDS THEY HAVE NO RIGHT TO CALL MY GOALS A HOMOSEXUAL AGENDA GIVEN WHAT IT MEANS TO THEM IT'S NOT A MATTER OF SEMANTICS IT'S A MATTER OF OWNERSHIP SEE RELATED LETTERS LETTERS TO THE EDITOR AIDS AND DEEP DENIAL WSJ MAY 26 1993 9305030025 YY93 MM05 9305260114 930526 MARKETING A RATING PLAN FOR RESTAURANTS STIRS UP TROUBLE BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COMBINE HUNDREDS OF FAMOUS RESTAURANTS DESPERATE FOR PUBLICITY WITH A BIG CORPORATION DESPERATE TO PLEASE ADD ONE IVY LEAGUE PROFESSOR SIMMER THAT'S THE RECIPE FOR AMERICAN EXPRESS CO'S LATEST PUBLICRELATIONS GAFFE IT ALL BEGAN TWO YEARS AGO AS AN ATTEMPT BY THE CREDITCARD GIANT TO CURRY FAVOR WITH FANCY EATERIES THAT HAD BEGUN TO GROUSE PUBLICLY ABOUT ITS STEEP FEES AFTER THE 1991 BOYCOTT OF ITS CARDS BY DOZENS OF BOSTON RESTAURANTS AMERICAN EXPRESS FELT THE NEED FOR SOME IMAGEPOLISHING SO IT AGREED TO BANKROLL A NEW EXCLUSIVE RESTAURANT ASSOCIATION DISTINGUISHED RESTAURANTS OF NORTH AMERICA OR DRNA WHOSE MEMBERSHIP WOULD BE RESTRICTED TO THE CREME DE LA CREME OF AMERICAN DINING IN THE TIMEHONORED TRADITION OF FINEDINING AWARDS BUSINESSGENERATING PUBLICITY COULD THEN BE LAVISHED UPON THE WINNERS AND BY EXTENSION AMERICAN EXPRESS THE JOB OF SELECTING THE WINNERS WHO ARE ELECTED TO MEMBERSHIP IN THE DRNA FELL TO TOM KELLY AN ASSOCIATE PROFESSOR AT CORNELL UNIVERSITY'S SCHOOL OF HOTEL ADMINISTRATION AND AN OLD FRIEND OF TOM MARGITTAI COOWNER OF NEW YORK'S FOUR SEASONS RESTAURANT AND THE FOUNDING PRESIDENT OF DRNA WITH A TEAM OF 15 STILLANONYMOUS ASSISTANTS MANY OF WHOM ARE MR KELLY'S ASSOCIATES AT CORNELL AND AN ESTIMATED BUDGET PROVIDED BY AMERICAN EXPRESS OF ABOUT 1 MILLION HE HAS SPENT THE BETTER PART OF THE PAST TWO YEARS GRAZING IN SOME OF THE FANCIEST RESTAURANTS IN THE NATION BUT THE PROFESSOR IT SEEMS DISPLAYED A BIT MORE SCHOLARLY INDEPENDENCE THAN BARGAINED FOR MR KELLY'S IDIOSYNCRATIC CHOICES HAVE ENRAGED TOP RESTAURATEURS FROM COAST TO COAST AND THEIR WRATH HAS SPILLED OVER ONTO AMERICAN EXPRESS AFTER EXAMINING SOME 850 RESTAURANTS IN THE FIRST YEAR OF THE PROGRAM HE AND HIS ASSISTANTS SAW FIT TO HONOR ONLY 313 AMONG THOSE OMITTED BOULEY IN NEW YORK AND COMMANDER'S PALACE IN NEW ORLEANS EACH RANKED THE NO 1 RESTAURANT IN THEIR RESPECTIVE CITIES BY THE ZAGAT DINING GUIDES SOME OF MR KELLY'S MOST VOCIFEROUS CRITICS COME FROM REJECTED RESTAURANTS THAT ACCEPT THE AMERICAN EXPRESS CARD AND FROM THE VERY ORGANIZATION THAT HIRED HIM TO DO THE SURVEY OVER HALF THE RESTAURATEURS ON DRNA'S FOUNDING BOARD WERE LEFT OFF THE LIST WE HAVE ONE OF THE BEST RESTAURANTS IN THE COUNTRY WE'RE PRAISED BY INTERNATIONAL WRITERS AND WE'RE BUMPED AWAY LIKE A PIECE OF TRASH FUMES BOARD MEMBER FILIPPO IL GRANDE OWNER OF MIAMI'S IL TULIPANO THE FUROR IS LIKELY TO BE RENEWED SOON THIS YEAR'S WINNERS ARE BEING NOTIFIED THIS WEEK AND THE LIST IS SURE TO EXCLUDE SOME SORE LOSERS IL TULIPANO FOR EXAMPLE STAYED OFF THE LIST BOULEY AND COMMANDER'S PALACE HOWEVER WERE INCLUDED THIS YEAR AMERICAN EXPRESS OFFICIALS DISMISS SUGGESTIONS THAT THEIR GOODWILL PLOY HAS BACKFIRED YOU NEVER HAVE EVERYONE 100 SATISFIED SAYS PATRICIA DUFFY THE AMERICAN EXPRESS TRAVEL RELATED SERVICES CO VICE PRESIDENT WHO OVERSEES THE COMPANY'S INVOLVEMENT IN THE AWARDS PROGRAM SHE MAINTAINS THAT THE SORE LOSERS AREN'T SO ANGRY THAT IT WILL HARM OUR RELATIONSHIP WITH THEM AND SHE PROFESSES SATISFACTION WITH MR KELLY'S PERFORMANCE HE CERTAINLY SHOWED A LOT OF INTEGRITY NO ONE WAS A SHOOIN YET AT DRNA'S ANNUAL MEETING IN SAN FRANCISCO LAST DECEMBER MR KELLY WAS SUBJECTED TO A THREEHOUR TONGUELASHING BY LOSERS HE JUST DOESN'T THINK ALONG THE SAME LINES AS WE DO SAYS JAMES A BLANDI ANOTHER BOARD MEMBER WHOSE LEMONT RESTAURANT IN PITTSBURGH FAILED TO PASS MUSTER SAYS MR KELLY I'M NOT A SUPERFORMAL PICKY GUY HE SAYS WHEN A RESTAURANT DIDN'T GET AN AWARD THERE WAS A SUBSTANTIVE FLAW HE BRANDISHES STATISTICAL TABLES SHOWING THAT 5278 OF THE RESTAURANTS FAILED ON AMBIENCE OR CLEANLINESS 21 ON BEVERAGE QUALITY 6545 ON FOOD AND 7545 FOR INFERIOR SERVICE EACH RESTAURANT HE NOTES WAS RATED ON 69 ASPECTS OF THE DINING EXPERIENCE FROM THE COAT CHECK TO THE NAPERY AND VENTILATION THE NUMBERSCRUNCHING ONLY INFLAMES MR KELLY'S CRITICS WHO ASSERT THAT HE LACKS A FEEL FOR THE ARTISTRY OF THE BUSINESS OTHERS CONTEND THAT HE GAVE MORE WEIGHT TO THE QUALITY OF A RESTAURANT'S DECOR THAN TO ITS CUISINE MORE THAN A THIRD OF LAST YEAR'S WINNERS WERE FORMAL HOTEL RESTAURANTS RUMORS ALSO PERSIST THAT SOME RESTAURANTS WERE REJECTED WITHOUT BEING INSPECTED I MAY NOT BE DEALING WITH LIFEANDDEATH ISSUES MR KELLY SAYS BUT THIS INDUSTRY GENERATES 267 BILLION IN SALES ANNUALLY IT'S SERIOUS BUSINESS AND I TAKE WHAT I DO VERY SERIOUSLY THE TEMPEST GREW OUT OF THE DEMISE OF THE VENERABLE TRAVEL HOLIDAY MAGAZINE AWARD WHICH ANNUALLY HONORED OVER 400 RESTAURANTS NATIONWIDE WHEN THE AWARD WAS ABANDONED THREE YEARS AGO SOME FORMER WINNERS DECIDED TO ESTABLISH THEIR OWN SELECT FINEDINING GROUP WHICH CHOSEN RESTAURANTS WOULD BE INVITED TO JOIN EACH YEAR AMID PUBLICITYGENERATING FANFARE IN AGREEING TO PICK UP THE TAB FOR THE FIRST YEAR'S SELECTION PROCESS ROUGHLY 500000 AMERICAN EXPRESS ISSUED A STERN CAVEAT OUR CONCERN WAS THAT THE JUDGING BE HANDLED PROFESSIONALLY AND OBJECTIVELY RECALLS MS DUFFY SO FOR MOST OF THE 199192 ACADEMIC YEAR MR KELLY AND HIS TEAM ATE THEIR WAY THROUGH THE 850 SELECTED RESTAURANTS INCLUDING THE 400 FORMER TRAVEL HOLIDAY WINNERS AND OTHERS CULLED FROM GUIDEBOOKS AND OTHER AWARDS PROGRAMS MR KELLY SAYS HE PERSONALLY INSPECTED 100 RESTAURANTS THE WORK WASN'T ALL WINE AND SONG HE INSISTS AT ONE PLACE WE HAD TO POUR OUR OWN BEVERAGES WHILE THE WAITER CLEANED HIS NAILS WITH THE SILVERWARE HE CONFIDES AGHAST IF I TOLD YOU THE NAME OF THE RESTAURANT IT WOULD STUN THE WORLD BUT EVEN SOME WINNERS ARE LESS THAN SATISFIED WITH WHAT HE HAS WROUGHT AMONG THE COMPLAINTS THAT DRNA MEMBERSHIP CARRIES UNEXPECTED PRIVILEGES SUCH AS HELPING TO SHOULDER THE GROUP'S PROMOTIONAL COSTS DANNY MEYER OWNER OF NEW YORK'S UNION SQUARE CAFE FELT HONORED TO WIN A DRNA AWARD LAST YEAR HIS RESTAURANT LIKE ALL WINNERS WON'T BE REJUDGED UNTIL THREE YEARS HAVE ELAPSED FROM THE DATE OF THE ORIGINAL AWARD BUT THEN DRNA ASKED HIM TO PAY 450 FOR A NEWSPAPER AD PUBLICIZING ITSELF WHICH HE DID ONLY GRUDGINGLY I HAVE VERY LITTLE INTEREST IN BEING ACTIVE IN ANY GROUP MARKETING EFFORT MR MEYER SAYS IF THE NEW YORK TIMES GIVES ME A GOOD REVIEW I DON'T HAVE TO WRITE A CHECK TO THE NEW YORK TIMES AMID ALL THE CRITICISM DRNA'S PRESIDENT TED BALESTRERI WHOSE SARDINE FACTORY IN MONTEREY CALIF WASN'T ON LAST YEAR'S LIST BUT MADE IT THIS YEAR SAYS THE AWARDS PROGRAM HAS ALREADY BEEN IMPROVED MR KELLY HE SAYS WAS LEARNING THE FIRST YEAR THIS YEAR THE NUMBER OF SURVEYED RESTAURANTS WAS TRIMMED TO 500 TO ALLOW FOR MORE CAREFUL SCRUTINY AS FOR MR KELLY HE IS BRACING FOR MORE FLAK BECAUSE OF THIS YEAR'S LIST BUT SEEMS UNFAZED I'M THE NECESSARY EVIL HE SAYS CHEERFULLY AS LONG AS THERE ARE HONEST INSPECTORS THERE WILL BE CONTROVERSY IL TULIPANO A MIAMI RESTAURANT WAS THE RECIPIENT OF A DISTINGUISHED RESTAURANTS OF NORTH AMERICA DIRONA AWARD THIS YEAR BASED ON INFORMATION PROVIDED BY A SPOKESMAN FOR THE GROUP AN ARTICLE WEDNESDAY INCORRECTLY STATED THAT THE RESTAURANT DIDN'T WIN AN AWARD ALSO A REQUEST FOR PROMOTIONAL FUNDING MENTIONED IN THE ARTICLE WAS MADE NOT BY THE RESTAURANT GROUP BUT BY A GROUP OF ITS MEMBER RESTAURANTS IN NEW YORK 9305260113 930526 MORRISON KNUDSEN VENTURE BOISE IDAHO MORRISON KNUDSEN CORP SAID IT SIGNED AN AGREEMENT TO TAKE PART IN A GOLDMINING JOINT VENTURE IN THE CENTRAL ASIAN REPUBLIC OF KYRGYZSTAN THE MINING AND HEAVYEQUIPMENT COMPANY SAID THE JOINT VENTURE WITH THE STATEOWNED MINING CONCERN KYRGYZALTYN WILL BE A 12YEAR PROJECT TO MINE 150000 OUNCES OF GOLD ANNUALLY STARTING IN 1995 9305260112 930526 HEALTH COLLEGE TOWNS BENEFIT KIDS STUDY FINDS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS MAY BE THE LAND OF BIG OIL AND BIG HAIR BUT IT'S A TOUGH PLACE TO BE A LITTLE KID ACCORDING TO A SURVEY BY ZERO POPULATION GROWTH SEVEN METROPOLITAN AREAS IN THE LONE STAR STATE PLACED AMONG THE 25 WORST FOR CHILDREN NATIONWIDE IN THE GROUP'S CHILDREN'S STRESS INDEX WITH THE HOUSTON AREA RANKING WORST OVERALL FOLLOWING HOUSTON ON THE LOSERS' LIST WERE LOS ANGELESLONG BEACH CALIF AND MIAMIHIALEAH FLA THE BEST PLACE TO BE A CHILD ACCORDING TO THE INDEX IS BURLINGTON VT FOLLOWED BY FARGO NDMOORHEAD MINN AND MADISON WIS THOSE AND OTHER COLLEGE TOWNS FARED WELL IN THE SURVEY WHICH ZERO POPULATION GROWTH ATTRIBUTES TO GREATER EDUCATIONAL LEVELS AND A LACK OF HEAVY INDUSTRY THE SURVEY BEING RELEASED TODAY RATED 239 METROPOLITAN AREAS FOR ECONOMIC SOCIAL AND ENVIRONMENTAL FACTORS INCLUDING AIR QUALITY WATER RESOURCES CRIME EDUCATION MATERNAL AND CHILD HEALTH AND POPULATION CHANGE AND CROWDING OFFICIALS IN THE POORLY RATED COMMUNITIES IMMEDIATELY CHALLENGED THE FINDINGS PEOPLE WHO LIVE IN SURROUNDING AREAS SEEM TO BE PLEASED WITH THE EDUCATION THEIR KIDS ARE GETTING SAYS MARY ELLEN WHITWORTH HOUSTON'S DIRECTOR OF ENVIRONMENTAL POLICY HOUSTON HAS GREAT OPERAS FINE MUSEUMS THEATERS RESTAURANTS A TREMENDOUS NUMBER OF TREES AND MANY VERY NICE NATURAL AREAS SHE SAYS IT'S VERY NICE TO BE SPREAD OUT AND TO HAVE SO MUCH OPEN SPACE DID THEY LOOK AT OPEN SPACE MS WHITWORTH SAYS THE SURVEY WOULD BE A LOT FAIRER IF THEY COMPARED CITIES WITH LARGE INDUSTRIAL COMPLEXES AND LOOKED AT HOW WELL EACH CITY IS DEALING WITH THOSE COMPLEXES SHE ARGUES THAT HOUSTON OVERALL IS DOING A VERY GOOD JOB OF CLEANING UP POLLUTION IN THE ZERO POPULATION GROWTH SURVEY HOUSTON SCORED PARTICULARLY POORLY ON WATER RESOURCES TOXIC RELEASES AND SEWAGE AND POPULATION CHANGE AND CROWDING WHILE SCORING BETTER ON EDUCATION FAMILY ECONOMICS AND MATERNAL AND CHILD HEALTH THE OTHER TEXAS CITIES IN THE WORST 25 WERE EL PASO MCALLENEDINBURG GALVESTONTEXAS CITY DALLAS SAN ANTONIO AND BROWNSVILLEHARLINGEN SUZANNE CORRIGAN A DALLAS PEDIATRICIAN AND A MEMBER OF THE EXECUTIVE BOARD OF THE TEXAS PEDIATRIC SOCIETY SAYS HOUSTON HAS ONE OF THE WORST CHILDIMMUNIZATION RATES IN THE STATE SHE SAYS BOTH HOUSTON AND DALLAS HAVE RECENTLY SEEN A RISE IN ALLERGIES AND ASTHMA CASES WHICH SHE SUSPECTS MAY BE DUE TO INCREASED POLLUTION BUT SOME OF THE STATE'S SUBURBAN SCHOOLS IN PARTICULAR ARE EXCELLENT DR CORRIGAN SAYS AND TEXAS IS WORKING TO REDUCE TEEN PREGNANCIES AND RAISE ITS IMMUNIZATION RATE DALLAS MAYOR STEVE BARTLETT SAYS THAT FOR A LARGE CITY DALLAS IS ONE OF THE MOST PLEASANT PARTICULARLY FOR FAMILIES AND CHILDREN HE SAYS THE CITY HAS HIGH RATES OF GRADUATION AND FAMILY CREATION AND WE HAVE STRONG SENSE OF GOODWILL AND RESPECT FOR ONE ANOTHER THAT MOVES US INTO A BETTER POSITION THAN OUR POPULATION WOULD INDICATE THE MIAMIHIALEAH AREA SCORED POORLY ON WATER RESOURCES TOXIC RELEASES AND SEWAGE AND CRIME BUT DID BETTER ON AIR QUALITY ENERGY TRANSPORTATION AND EDUCATION FOR A LARGE CITY OUR SCHOOL SYSTEM IS PROBABLY THE FINEST IN AMERICA SAYS HENRY FRAIND AN OFFICIAL WITH THE DADE COUNTY PUBLIC SCHOOLS OTHER EDUCATORS CAN'T BELIEVE THE QUALITY OF SERVICES WE PROVIDE TO OUR SCHOOLCHILDREN EVEN THOUGH WE HAVE OUR FEW SHOOTINGS THE INCIDENCE IS SO LOW MR FRAIND CONCEDES THAT A LOT OF KIDS SEEM TO CARRY GUNS AND THAT DEALING WITH AN EXTREMELY DIVERSE STUDENT BODY CAN BE STRESSFUL THERE ARE 140 SPOKEN LANGUAGES IN THE SYSTEM REFLECTING A POPULATION THAT IS 47 HISPANIC AND 34 BLACK WITH SIZABLE ASIAN AND AMERICAN INDIAN POPULATIONS MANY OF THE COMMUNITIES THAT RATED HIGH IN THE SURVEY DON'T HAVE TO DEAL WITH THE CHALLENGES OF A DIVERSE POPULATION TOPRANKED BURLINGTON REMAINS A LARGELY WHITE COMMUNITY SAYS PAUL DANYOW SUPERINTENDENT OF SCHOOLS DESPITE A RECENT INCREASE IN REFUGEES FROM EASTERN EUROPE AND A CONTINUED INFLUX FROM VIETNAM AND OTHER ASIAN NATIONS BURLINGTON SCORED ESPECIALLY WELL ON EDUCATION AIR QUALITY AND MATERNAL AND CHILD HEALTH ITS LOWEST SCORES CAME ON POPULATION CHANGE AND CROWDING AND TOXIC RELEASES AND SEWAGE WE FOUND A STRONG CORRELATION BETWEEN THE SIZE OF A CITY OR METROPOLITAN AREA AND THE OVERALL STRESS ON CHILDREN SAYS DIANNE SHERMAN A SPOKESWOMAN FOR ZERO POPULATION GROWTH A WASHINGTONBASED NONPROFIT GROUP THAT ADVOCATES POPULATION STABILITY BIGGER ISN'T ALWAYS BETTER SHE CONCLUDES THAT A LOT OF THESE PROBLEMS THROUGHOUT THE COUNTRY WON'T GO AWAY WITHOUT A NATIONAL POPULATION POLICY WHICH SHE SAYS SHOULD INCLUDE BETTER ACCESS TO CONTRACEPTIVES AND BETTER MONITORING OF POPULATION PRESSURES ON NATURAL RESOURCES SAN FRANCISCO PROVIDED AN EXCEPTION TO THE PREVALENCE OF SMALLER CITIES RANKING AS THE ONLY METROPOLITAN AREA IN THE TOP 25 WITH A POPULATION ABOVE 450000 IT HAS 16 MILLION PEOPLE 303000 OF THEM CHILDREN THE SURVEY GAVE SAN FRANCISCO GOOD MARKS FOR FAMILY ECONOMICS AIR QUALITY AND EDUCATION ITS LOWEST SCORES WERE FOR WATER RESOURCES AND CRIME NOAH GRIFFIN PRESS SECRETARY TO SAN FRANCISCO MAYOR FRANK JORDAN SUGGESTS THAT THE CITY BENEFITS FROM ITS KIDTOADULT RATIO WHICH HE SAYS IS LOWER THAN IN MOST OTHER CITIES HE ALSO CITES THE AREA'S ARRAY OF BEACHES PARKS AND PROFESSIONAL SPORTS TEAMS AND SAYS MASSTRANSIT FARES ARE KEPT AT REASONABLE RATES FOR CHILDREN HE SAYS THE CITY IS WORKING TO GIVE LESSAFFLUENT KIDS AS MANY RECREATIONAL AND OTHER OPTIONS AS THOSE FROM WELLOFF FAMILIES SAN FRANCISCO'S DOWNSTATE NEIGHBOR DIDN'T FARE AS WELL LOS ANGELESLONG BEACH SCORED LOW ON WATER RESOURCES AIR QUALITY AND POPULATION CHANGE AND CROWDING WHILE FARING BETTER ON MATERNAL AND CHILD HEALTH AND EDUCATION ASTRID HEGER DIRECTOR OF THE SUSPECTED CHILD ABUSE AND NEGLECT PROGRAM AT THE UNIVERSITY OF SOUTHERN CALIFORNIA SAYS THERE HAS BEEN A DRAMATIC INCREASE IN CHILDABUSE CASES A TREND SHE SAYS REFLECTS THE SEVERITY OF THE STATE'S ECONOMIC SLUMP SHE SAYS THE COMMUNITY HAS MADE AN ENORMOUS COMMITMENT TO PROVIDING MEDICAL SERVICES AND GENERALLY DOES AN EXCELLENT JOB OF TREATING ABUSED CHILDREN BUT SHE ADDS WE ARE A LITTLE OVERWHELMED BY THE VOLUME OF CHILDREN WHO ARE ABUSED THAT WE ARE BEING ASKED TO SEE RIGHT NOW THE LOS ANGELES MAYOR'S OFFICE DECLINED TO COMMENT 9305260111 930526 OTC FOCUS INDEX GAINS 005 BUT DELL COMPUTER TUMBLES SOME GAMBLING STOCKS DROP BY MARY ROMANO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS POSTED A SMALL GAIN OVERCOMING CONCERNS SPAWNED FROM A BAD EARNINGS REPORT AT A MAJOR TECHNOLOGY COMPANY TRADERS SAID DELL COMPUTER DRAGGED DOWN NASDAQ STOCKS WITH A FIRSTQUARTER EARNINGS FIGURE THAT WAS WELL BELOW WALL STREET EXPECTATIONS A SLUMP IN SOME GAMBLING STOCKS ALSO CONTRIBUTED TO THE NASDAQ'S WEAKNESS THE NASDAQ COMPOSITE INDEX FINISHED WITH A GAIN OF 035 POINT OR 005 TO 69504 VOLUME WAS HEAVIER THAN ON MONDAY NASDAQ NATIONAL MARKET SYSTEM VOLUME WAS 214910000 SHARES COMPARED WITH 168800000 SHARES MONDAY ADVANCERS LED DECLINERS 1386 TO 1263 OTC STOCKS ATTEMPTED TO CLIMB AT MIDDAY BUT DRIFTED LOWER BEFORE A SMALL RALLY AT THE END OF THE TRADING SESSION IT'S INERTIA AT WORK SAID TONY CECIN DIRECTOR OF EQUITY TRADING AT PIPER JAFFRAY IT'S JUST WANDERING SIDEWAYS LOOKING FOR SOME DIRECTION DELL PLUNGED 7 3/8 TO 24 3/4 AFTER POSTING DISAPPOINTING EARNINGS OF 25 CENTS A SHARE OR 102 MILLION FOR ITS FIRST QUARTER ENDED MAY 2 WALL STREET ANALYSTS HAD ESTIMATED EARNINGS OF 70 CENTS A SHARE THE COMPANY EARNED 52 CENTS IN THE YEARAGO QUARTER MICHAEL DELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID COSTS ASSOCIATED WITH THE COMPANY'S NOTEBOOK COMPUTER BUSINESS CUT INTO EARNINGS DELL'S EARNINGS DISAPPOINTED EVERYONE SAID ROBERT ANTOLINI HEAD OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE MICROSOFT DROPPED 7/8 TO 91 1/4 APPLE COMPUTER FELL 1 1/4 TO 56 3/8 AND SUN MICROSYSTEMS EASED 3/4 TO 29 1/4 MR ANTOLINI NOTED THAT A CORRECTION IN SOME OF THE GAMING STOCKS HELPED WEAKEN US SEVERAL OF THE RIVERBOAT GAMBLING STOCKS WHICH HAVE SKYROCKETED ON THE PROSPECTS FOR THIS TYPE OF GAMBLING ON THE GULF COAST SLUMPED YESTERDAY CASINO MAGIC DROPPED 2 1/2 TO 77 1/2 PRESIDENT RIVERBOAT CASINOS FELL 1 3/4 TO 42 1/4 SOME MARKET PLAYERS SAID THEY BELIEVE NASDAQ STOCKS WILL STAGE A RALLY THIS WEEK IT WANTS TO GO HIGHER IT'S BUILDING A BASE TO GO HIGHER SAID GEORGE JENNISON COMANAGER OF OTC TRADING AT WHEAT FIRST BUTCHER & SINGER OTC STOCKS WILL GO RIGHT BACK UP IF WHAT'S GOING ON RIGHT NOW IS ANY INDICATION DONALDSON'S MR ANTOLINI SAID AS PRICES CLIMBED MOMENTS BEFORE THE CLOSE OF THE SESSION MARKET PLAYERS SAID CONFERENCE BOARD FIGURES ON CONSUMER CONFIDENCE DIDN'T HAVE A NEGATIVE IMPACT ON TRADING THE CONFERENCE BOARD SAID ITS MAY INDEX OF CONSUMER CONFIDENCE FELL TO 615 FROM 676 IN APRIL THE LEVEL OF CONFIDENCE IS NOW LOWER THAN IT HAS BEEN SINCE OCTOBER THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FINISHED THE SESSION WITH A GAIN OF 063 POINT TO 24770 THE DOW JONES INDUSTRIAL AVERAGE MOVED UP 885 POINTS TO 351663 LONE STAR STEAKHOUSE & SALOON JUMPED 1 1/4 TO 27 1/2 AN OFFERING OF FIVE MILLION COMMON SHARES WAS PRICED MONDAY AT 2575 THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES OF THE SHARES 23 MILLION ARE BEING SOLD BY THE COMPANY PULSE ENGINEERING ROSE 3/4 TO 7 3/4 AFTER ITS BOARD LATE MONDAY INCREASED ITS STOCK BUYBACK PLAN TO ONE MILLION CLASS A VOTING COMMON SHARES FROM 500000 PULSE AN ELECTRONIC PARTS MAKER SAID 300000 SHARES HAVE BEEN PURCHASED TO DATE ORCHARD SUPPLY HARDWARE GAINED 1 1/4 TO 13 1/4 AFTER IT REPORTED FIRSTQUARTER OPERATING EARNINGS OF 40 CENTS A SHARE COMPARED WITH A LOSS OF 35 CENTS A YEAR EARLIER ABSOLUTE ENTERTAINMENT ROSE 1 TO 12 1/2 NEEDHAM & CO STARTED INVESTMENT COVERAGE OF THE DEVELOPER AND PUBLISHER OF INTERACTIVE SOFTWARE WITH A BUY RATING THE COMPANY ON APRIL 30 HAD AN INITIAL PUBLIC OFFERING OF 14 MILLION SHARES THAT WAS COMANAGED BY NEEDHAM AND PACIFIC GROWTH EQUITIES INTERVOICE FELL 1 TO 27 1/4 LEHMAN BROTHERS LOWERED ITS INVESTMENT RATING ON THE STOCK TO OUTPERFORM FROM BUY ROPER INDUSTRIES SURGED 2 1/2 TO 47 1/2 THE COMPANY SAID SECONDQUARTER NET INCOME WAS 40 CENTS A SHARE COMPARED WITH FOUR CENTS A YEAR EARLIER ROPER SAID THE IMPROVEMENT WAS TIED TO INCREASED SALES OF INDUSTRIAL CONTROLS AND FLUIDHANDLING SEGMENTS MERRILL CORP GAINED 1/2 TO 19 3/4 MERRILL WHICH PROVIDES TYPESETTING AND PRINTING SERVICES SAID FIRSTQUARTER OPERATING NET WAS 42 CENTS A SHARE COMPARED WITH NET INCOME OF 28 CENTS A YEAR EARLIER REFLECTING INCREASED REVENUE FROM ALL SECTORS 9305260110 930526 MARKETING BRIEF NOTED MAGAZINES AMERICAN EXPRESS CO SUSPENDED PUBLICATION OF D MAGAZINE WITH THE JUNE ISSUE AMERICAN EXPRESS PUBLISHING CORP BOUGHT THE CITY MAGAZINE FOR THE DALLAS REGION IN 1990 BUT ANNOUNCED PLANS TO SELL IT LAST DECEMBER TONY MORGANO OF THE PUBLISHING UNIT SAID THAT WHILE WE ARE IN NEGOTIATIONS WITH AT LEAST ONE PARTY THAT MIGHT BEAR FRUIT WE FELT IT PRUDENT TO SUSPEND PUBLICATION AT THIS TIME WHO'S NEWS TIME WARNER INC NAMED TWO VICE PRESIDENTS ROBERT W BRODBECK ASSISTANT CONTROLLER AND TONI FAY DIRECTOR OF COMMUNITY RELATIONS 9305260109 930521 SOUTHDOWN HOLDERS SEEK ROLE IN PAYING GOLDEN PARACHUTES BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON SOUTHDOWN INC'S SHAREHOLDERS VOTED TO RECOMMEND THAT THE COMPANY'S BOARD NOT AWARD EMPLOYMENT CONTRACTS WITH GOLDEN PARACHUTE PROVISIONS TO ITS EXECUTIVES WITHOUT OBTAINING SHAREHOLDERS' APPROVAL SHAREHOLDERS HOLDING A TOTAL OF ABOUT FIVE MILLION SHARES APPROVED THE PROPOSAL BY ABOUT A 41 MARGIN AT THE COMPANY'S ANNUAL MEETING A COMPANY SPOKESMAN SAID THE PRESIDENT OF WASHINGTONBASED UNITED SHAREHOLDERS ASSOCIATION RALPH WHITWORTH SAID THE SHAREHOLDER ACTIVIST GROUP PROPOSED THE RESOLUTION AFTER TARGETING SOUTHDOWN AS ONE OF ABOUT 40 TO 50 COMPANIES WITH POOR PERFORMANCE AND SHAREHOLDERS' RIGHTS RECORDS THE COMPANY SPOKESMAN SAID SOUTHDOWN HAD NO COMMENT ON THE PROPOSAL'S PASSAGE GOLDEN PARACHUTE PROVISIONS OFFER SENIOR EXECUTIVES LUCRATIVE SEVERANCE CONTRACTS WITH PAYMENTS EQUAL TO SEVERAL TIMES THEIR ANNUAL COMPENSATION IN THE EVENT THEIR JOBS ARE TERMINATED AFTER A CHANGE OF CONTROL AT THE COMPANY OFTEN THROUGH A MERGER OR ACQUISITION MR WHITWORTH SAID THE ARRANGEMENTS ARE COSTLY POSE A CONFLICT OF INTEREST FOR EXECUTIVES AND UNDERMINE MORALE BECAUSE THEY ARE SPECIAL DEALS FOR SPECIAL PEOPLE SOUTHDOWN HAS GRANTED THE SEVERANCE AGREEMENTS TO SEVEN EXECUTIVES MR WHITWORTH SAID THE TYPE OF PROPOSAL SOUTHDOWN SHAREHOLDERS RATIFIED USUALLY RECEIVES SUPPORT FROM ABOUT 35 OF SHAREHOLDERS WHEN PUT TO A VOTE THAT RESULT IS A SIGN OF THE TIMES MR WHITWORTH SAID THAT SENDS A POWERFUL MESSAGE TO THE COMPANY AND IT ALSO INDICATES THE DISCONTENT AMONG SOUTHDOWN SHAREHOLDERS IN THE MONTHS LEADING UP TO THE ANNUAL MEETING SOUTHDOWN WAS EMBROILED IN A SEPARATE PROXY FIGHT WHICH IT EVENTUALLY SETTLED WITH RICHARD C BLUM & ASSOCIATES INC A SAN FRANCISCOBASED FINANCIAL ADVISER THAT CONTROLS A 147 SOUTHDOWN STAKE OWNED BY THE CARPENTERS PENSION TRUST FOR SOUTHERN CALIFORNIA THE PROPOSAL'S APPROVAL DOESN'T COMPEL SOUTHDOWN'S BOARD TO SEEK SHAREHOLDERS' APPROVAL BEFORE ENTERING EMPLOYMENT CONTRACTS THAT HAVE GOLDEN PARACHUTE PROVISIONS IT ONLY RECOMMENDS THAT THE BOARD CONSULT SHAREHOLDERS THE COMPANY'S BOARD SAID IN ITS PROXY STATEMENT THAT THE BOARD WOULD TAKE THE RECOMMENDATION UNDER ADVISEMENT IF THE RESOLUTION PASSED MR WHITWORTH SAID UNITED SHAREHOLDERS WILL CONTACT THE COMPANY SOON TO ASK IF IT WILL ABIDE BY THE SHAREHOLDERS' RECOMMENDATION WE WOULD EXPECT THEM TO TAKE SOME ACTION HE SAID IF THEY DON'T WE'LL BE BACK NEXT YEAR 9305260108 930526 ABREAST OF THE MARKET STOCKS FIRM UP BUT HIGHER GAINS ARE CHECKED BY RISING BOND YIELDS BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS FIRMED UP IN A SEDATE SESSION BUT RISING BOND YIELDS CAPPED THE POSSIBILITY OF BETTER GAINS THE DOW JONES INDUSTRIAL AVERAGE BOUNCED ABOUT IN AN EXTREMELY NARROW RANGE ULTIMATELY ADDING 885 POINTS OR 025 TO END AT 351663 THE BROADER MARKET ALSO SHOWED MODERATE GAINS WITH THE STANDARD & POOR'S 500STOCK INDEX ADVANCING 085 POINT OR 019 TO 44885 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX MOVING 063 POINT OR 025 HIGHER TO 24770 GAINING ISSUES OUTRAN LOSING ISSUES 1127 TO 795 ON BIG BOARD VOLUME OF 220940000 SHARES COMPARED WITH 196728000 SHARES MONDAY STOCKS TOOK COMFORT FROM HIGHER BOND PRICES FOR MUCH OF THE SESSION BUT BY THE END OF THE DAY THE GOVERNMENT'S BELLWETHER LONG BOND HAD EASED FRACTIONALLY DRIVING ITS YIELD UP TO THE 7 MARK BARRY BERMAN HEAD TRADER AT ROBERT W BAIRD & CO SAID THE MARKET'S BREADTH PERKED UP A LITTLE AND WITH A LITTLE HELP FROM THE BOND MARKET WE WOULD HAVE HAD A BETTER DAY ANALYSTS SAY MANY MARKET PLAYERS ARE HESITATING AHEAD OF TOMORROW'S VOTE IN THE HOUSE OF REPRESENTATIVES ON PRESIDENT CLINTON'S ECONOMIC PACKAGE PEOPLE ARE TRYING TO SORT OUT WHAT'S GOING ON WITH THE ADMINISTRATION MR BERMAN SAID THERE'S A LOT OF MONEY AROUND BUT NO ONE CAN MAKE PROJECTIONS ON INDUSTRIES OR COMPANIES UNTIL THEY KNOW WHAT'S GOING ON WITH THE ECONOMIC AND HEALTH CARE PLANS THE MARKET MOSTLY IGNORED ECONOMIC DATA RELEASED THIS MORNING ANALYSTS SAID THE MAY CONSUMER CONFIDENCE INDEX FELL 61 TO 615 ITS LOWEST LEVEL SINCE OCTOBER ECONOMISTS HAD EXPECTED THE INDEX TO MEASURE 65 FOR THE MONTH SALES OF EXISTING SINGLEFAMILY HOMES IN THE US ROSE 27 LAST MONTH FROM MARCH TO A SEASONALLY ADJUSTED ANNUAL RATE OF 346 MILLION THE NATIONAL ASSOCIATION OF REALTORS SAID THE INCREASE WAS THE FIRST IN FOUR MONTHS THE PRICE OF GOLD MOVED HIGHER AGAIN QUOTED AT 37850 AN OUNCE UP 460 RISING GOLD PRICES ARE TYPICALLY SEEN AS A HARBINGER OF INFLATION THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX BROKE THE RECORD IT SET FRIDAY RISING 238 POINTS OR 055 TO FINISH AT 43407 COMPUTER STOCKS CAME UNDER PRESSURE AFTER OVERTHECOUNTER ISSUE DELL COMPUTER REPORTED SHARPLY LOWER FISCAL FIRSTQUARTER EARNINGS THE COMPUTER MAKER'S SHARES PLUNGED 7 3/8 TO 24 3/4 DELL CITED TROUBLES WITH ITS NOTEBOOK COMPUTERS HEWLETTPACKARD DECLINED 2 1/4 TO 83 3/8 AND COMPAQ COMPUTER LOST 1 1/8 TO 56 1/4 AFTER BEING DELAYED FOR AN ORDER IMBALANCE AFTER THE OPEN INDUSTRY OBSERVERS SAID THERE ARE NO SIGNS THAT THE PC NOTEBOOK MARKET WILL FALTER ON THE UP SIDE INTERNATIONAL BUSINESS MACHINES ROSE 5/8 TO 50 3/8 ON HEAVY VOLUME THE EUROPEAN COMMUNITY COMMISSION CLEARED IBM FRANCE'S PROPOSED TAKEOVER OF FRENCH COMPUTER SOFTWARE AND SERVICES COMPANY COMPAGNIE GENERALE D'INFORMATIQUE UNDER EC MERGER RULES AMONG OTHER BLUE CHIPS AMERICAN TELEPHONE & TELEGRAPH ADDED 1 1/2 TO 62 IN ACTIVE TRADING ON NEWS OF ITS GLOBAL EXPANSION PLANS INTERNATIONAL PAPER JUMPED 1 3/8 TO 67 WHILE UNITED TECHNOLOGIES FELL 1 5/8 TO 51 7/8 DISPOSABLE DIAPER MAKERS WERE WEAK FOLLOWING NEWS THAT KIMBERLYCLARK WILL CUT PRICES BY ABOUT 7 FOR ITS HUGGIES BRAND REDUCING ITS DIAPER REVENUE BY ABOUT 50 MILLION THIS YEAR KIMBERLYCLARK WAS OFF 1 1/2 AT 48 1/8 IN SYMPATHY PARAGON TRADE BRANDS SLIPPED 2 1/2 TO 17 1/4 MERRILL LYNCH DOWNGRADED THE COMPANY'S LONGTERM RATING TO ABOVE AVERAGE FROM BUY BUT KEPT ITS SHORTTERM NEUTRAL RECOMMENDATION THE MOST ACTIVE ISSUE AMAX INC SURGED 4 1/8 TO 22 3/4 AFTER IT ANNOUNCED IT WILL MERGE WITH CYPRUS MINERALS TO FORM CYPRUSAMAX WITH ASSETS OF ABOUT 5 BILLION AND PRO FORMA 1992 REVENUE OF 28 BILLION CYPRUS DROPPED 1 TO 26 5/8 ELSEWHERE DEERE & CO SWELLED 2 3/4 TO 63 7/8 THE FARM EQUIPMENT CONCERN REPORTED FISCAL SECONDQUARTER NET INCOME OF 39 CENTS A SHARE ON CHARGES COMPARED WITH EARNINGS OF 58 CENTS A SHARE A YEAR EARLIER ANALYSTS PRAISED THE COMPANY'S PROFIT MARGIN IMPROVEMENT FOR THE QUARTER AND NATWEST SECURITIES AND DEAN WITTER UPGRADED THE COMPANY'S SHARES T2 MEDICAL SHOT 1 1/2 HIGHER TO 16 7/8 AFTER IT SAID THAT A GROUP WHICH INCLUDES SOME OF ITS MANAGEMENT HELD PRELIMINARY TALKS TO CONSIDER MAKING AN ACQUISITION OFFER FOR THE PROVIDER OF ALTERNATE SITE HEALTH CARE SERVICES FLEETWOOD ENTERPRISES SAGGED 2 3/8 TO 17 5/8 MERRILL LYNCH CUT ITS INTERMEDIATETERM RATING TO NEUTRAL FROM ABOVE AVERAGE CITING AN INDUSTRYWIDE DECELERATION IN SALES OF CERTAIN RECREATIONAL VEHICLES MERRILL MAINTAINS ITS LONGTERM BUY ON THE MOTOR HOME COMPANY 9305260107 930526 LEISURE & ARTS BOOKSHELF HIS WORDS TOUCHED HEAVEN AND EARTH BY JAMES BOWMAN JAMES JOYCE LEFT DUBLIN FOREVER IN 1912 WHEN HE WAS 30 HAVING LIVED ABROAD FOR MOST OF THE PRECEDING EIGHT YEARS BUT THE WORKS UPON WHICH HIS FAME RESTS AS ONE OF OUR CENTURY'S GREATEST NOVELISTS PORTRAIT OF THE ARTIST AS A YOUNG MAN DUBLINERS ULYSSES AND FINNEGAN'S WAKE ALL DRAW UPON HIS AMAZING RESERVOIR OF DETAILED MEMORIES ABOUT HIS NATIVE CITY PETER COSTELLO HAS CAST HIS NEW BIOGRAPHY JAMES JOYCE THE YEARS OF GROWTH 18821915 PANTHEON 374 PAGES 30 IN THE FORM OF A QUEST FOR THE REALLIFE ORIGINALS OF THE PEOPLE PLACES AND EVENTS MENTIONED IN JOYCE'S FICTION SUCH A CATALOGUE OF TRIVIA COULD EASILY BE BORING TO ALL BUT THE MOST DEDICATED JOYCEANS AND IN A WAY IT IS BUT UNLIKE SO MANY FORMS OF BOREDOM THIS ONE ACTUALLY HAS A PAYOFF BY THE TIME YOU HAVE COME THROUGH THE ACCOUNT OF HOUSES AND MORTGAGES HIS FAMILY'S FRIENDS AND RELATIVES AND THEIR FRIENDS' RELATIVES AND THEIR RELATIVES' FRIENDS BY THE TIME YOU HAVE PUZZLED OVER THE STILL OBSCURE CONNECTION BETWEEN JOYCE'S BROTHER'S GODMOTHER AND ONE OF THE FOUR OLD MEN IN FINNEGAN'S WAKE BOTH NAMED TARPEY OR REJOICED IN THE POSITIVE IDENTIFICATION IN NINE CLOSELY ARGUED PAGES OF EMMA CLERY A VERY MINOR CHARACTER IN STEPHEN HERO AND AN EVEN MORE MINOR CHARACTER IN A PORTRAIT OF THE ARTIST YOU HAVE BEGUN TO SEE HOW THE CONVERSION OF SUCH UNPROMISING LIFE MATERIAL INTO ENDURING FICTION CAN ONLY HAVE BEEN THE WORK OF A REMARKABLE WRITER THAT HE WAS ONE JOYCE WOULD HAVE BEEN THE FIRST TO ADMIT AT THE AGE OF 17 HE TOLD HIS PARENTS THAT THEY NEEDN'T HAVE GONE TO SEE A PLAY TO DO WITH THE DISCOVERY OF GENIUS IN A FAMILY SETTING BECAUSE THEY WERE ABOUT TO EXPERIENCE THE SAME THING THEMSELVES HIS LOST PLAY FROM THIS PERIOD CALLED MY BRILLIANT CAREER BORE A DEDICATION TO MY OWN SOUL IN 1902 AT THE AGE OF 20 HE WALKED ACROSS DUBLIN TO THE HOME OF THE 35YEAROLD GEORGE RUSSELL WHO HAD ALREADY ESTABLISHED A REPUTATION AS A POET WRITING UNDER THE NAME OF AE AND TOLD HIM THAT HE WOULD NEVER BE A REAL POET ARRIVING AT NEARLY MIDNIGHT HE ALSO TOLD HIS ASTONISHED HOST THAT YEATS WAS RATHER A DUFFER AT THE GAME AS WELL AND THAT HE WAS ONLY SORRY THAT HE JOYCE HAD COME ALONG TOO LATE TO HELP THE POOR OLD FELLOW SMALL WONDER THAT HIS CLASSMATES AT UNIVERSITY COLLEGE NICKNAMED HIM THE HATTER THINKING OF ALICE IN WONDERLAND BUT SUCH STORIES ABOUT JOYCE SWIFTLY PASSED INTO DUBLIN LEGEND AS THEY WERE NO DOUBT INTENDED TO DO AND EVEN THOSE WHO CONSIDERED HIM THE STUDIED ESSENCE OF CONCEIT ALWAYS SEEM TO HAVE EXPECTED GREAT THINGS OF HIM WHEN HE WAS BARELY OUT OF HIS TEENS LEADING FIGURES OF THE IRISH AND ENGLISH LITERARY SCENE WERE SO IMPRESSED WITH THE YOUNG MAN THAT THEY GAVE HIM LETTERS OF INTRODUCTION AND RASHLY LENT HIM MONEY WHAT IS REMARKABLE IS THAT JOYCE WAS NEVER SO FULL OF HIMSELF THAT HE WAS UNAWARE OF THE WORLD AROUND HIM MR COSTELLO IS ESPECIALLY CONCERNED TO SHOW THE DEEPLY PERSONAL NATURE OF SOME OF THE MERELY PASSING REFERENCES IN JOYCE'S WORKS AND ON SEVERAL POINTS INCLUDING THE AGES AT WHICH HE LOST BOTH HIS RELIGIOUS FAITH AND HIS VIRGINITY LATER THAN PREVIOUSLY THOUGHT IN BOTH CASES HE SERVES AS A USEFUL CORRECTIVE TO THE LONGACCEPTED VIEWS PUT FORWARD IN THE STANDARD BIOGRAPHY BY RICHARD ELLMANN FOR EXAMPLE HE TELLS US THAT THE MODEL FOR LEOPOLD BLOOM IN ULYSSES WAS NOT JEWISH AT ALL BUT AN ULSTER PROTESTANT NAMED ALFRED HUNTER MR COSTELLO IS RIGHT TO GIVE MORE WEIGHT THAN PAST AUTHORS TO JOYCE'S CATHOLICISM EVEN THOUGH IT WAS ABANDONED IN HIS MATURITY AND HE ARGUES THAT JOYCE RETAINED MANY VESTIGES OF BELIEF INCLUDING A LIFELONG TERROR OF THUNDER WHICH HIS FIRST TEACHER MRS CONWAY ASSOCIATED WITH JUDGMENT AND DAMNATION JOYCE RETAINED A PARTICULARLY LONGLASTING EMOTIONAL ATTACHMENT TO THE VIRGIN MARY WHICH FITS WELL WITH WHAT WE KNOW OF THE IMPORTANCE OF MOTHERLOVE IN HIS NOVELS AND THE CURIOUS COMBINATION OF SERIOUSNESS ABOUT SEX WITH A KIND OF SQUEAMISHNESS THAT WAS VERY MUCH OF ITS TIME LIKEWISE IN FASHION DURING THE FIRST DECADE OF THE CENTURY WERE HIS INTERESTS IN IBSEN AND THEOSOPHISM AND ABOVE ALL HIS EXALTED AND QUASIRELIGIOUS IDEA OF ART MR COSTELLO IS RIGHT TO SEE IN JOYCE'S ART WORSHIP HIS NEED TO PUT SOMETHING IN PLACE OF THE RELIGIOUS FAITH THAT HAD ONCE MEANT SO MUCH TO HIM MR COSTELLO ALSO REMINDS US HOW VERY EARTHY JOYCE'S ART OFTEN IS REVOLTED READERS OF ULYSSES WILL REMEMBER THE THRILL THAT LEOPOLD BLOOM GETS FROM THE HINT OF URINE IN THE SHEEP'S KIDNEYS HE FRIES FOR HIS BREAKFAST THIS KIND OF DETAIL PRETERNATURALLY SENSITIVE TOWARDS ANYTHING TO DO WITH THE SENSES IS QUINTESSENTIALLY JOYCEAN BUT IT IS ALSO TYPICAL OF THE CLOSENESS OF JOYCE'S FOCUS ON THE TEXTURE OF DUBLIN LIFE FAMOUSLY WEAKSIGHTED FROM BOYHOOD MR COSTELLO SUGGESTS HE OWED HIS LINGUISTIC INVENTIVENESS TO THE FACT THAT THE PRINTED WORD MAY WELL HAVE BEEN MORE REAL TO HIM THAN THE PHYSICAL WORLD AROUND HIM JOYCE DIDN'T MISS A THING MR BOWMAN IS THE AMERICAN EDITOR OF THE TIMES LITERARY SUPPLEMENT 9305260106 930526 POLITICS & POLICY WHO WINS AND WHO LOSES UNDER HEALTH PLAN MAY BE THE KEY TO SUCCESS OF CLINTON'S REFORMS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S HEALTHCARE PLAN WILL MAKE THE 37 MILLION AMERICANS WHO CURRENTLY LACK HEALTH INSURANCE BIG WINNERS BUT THE KEY TO ITS SUCCESS MAY DEPEND ON HOW MANY OF THE 220 MILLION OTHER AMERICANS FEEL LIKE LOSERS AMONG THE BIGGEST LOSERS EXPERTS SAY MAY BE A GROUP OF PEOPLE WHO TEND TO MAKE A LOT OF POLITICAL NOISE THOSE WITH SECURE JOBS AT LARGE COMPANIES WHO ALREADY ENJOY MORE GENEROUS HEALTH COVERAGE THAN THE BASIC BENEFITS PACKAGE THAT IS EXPECTED TO BE IN THE CLINTON PLAN YOU'RE TALKING ABOUT HIGHWAGE PEOPLE LIKE PROFESSIONALS IN A LAW FIRM OR PEOPLE WHO HAVE GOTTEN RICH HEALTH BENEFIT PLANS THROUGH A COLLECTIVE BARGAINING AGREEMENT NEGOTIATED BY A STRONG UNION SAYS ED HOWARD EXECUTIVE VICE PRESIDENT OF THE NONPARTISAN ALLIANCE FOR HEALTH REFORM FOR THE ADMINISTRATION ENSURING THAT THERE ARE AS FEW LOSERS AS POSSIBLE IS A TRICKY TASK THE WHOLE PREMISE OF ITS HEALTHREFORM PROPOSAL IS THAT ALL EMPLOYERS WOULD ONE WAY OR ANOTHER BE REQUIRED TO PROVIDE HEALTH COVERAGE FOR THEIR WORKERS BUT TO HELP EASE THE BURDEN ON THOSE WHO NOW PROVIDE FEW OR NO BENEFITS TO THEIR EMPLOYEES WELLOFF COMPANIES ARE LIKELY TO BE ASKED TO PAY DISPROPORTIONATELY MORE IN THE FIRST FEW YEARS AND MANY ANALYSTS WONDER WHETHER EMPLOYERS OFFERING SUPERIOR HEALTH PLANS ILL BE ABLE TO AFFORD A CONTINUED HIGH LEVEL OF BENEFITS WHILE AT THE SAME TIME PAYING SUBSIDIES TO SUPPORT OTHERS THERE WILL BE ALL SORTS OF REDISTRIBUTION INHERENT IN ANY MAJOR HEALTHCARE REFORM SAYS ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE AND THOSE WHO RIGHT NOW HAVE EXTREMELY GENEROUS BENEFITS PAID FOR BY THEIR EMPLOYERS WILL PROBABLY SEE EITHER THEIR COSTS RISE OR THEIR BENEFITS SHAVED BACK OR A LITTLE BIT OF BOTH OFFICIALS WORKING ON THE ADMINISTRATION'S PLAN BRISTLE AT THE SUGGESTION THAT ANYONE WILL LOSE THEY INSIST THAT BY REQUIRING ALL EMPLOYERS TO CONTRIBUTE TO THEIR WORKERS' HEALTH COVERAGE THEY WILL BE PUTTING A STOP TO THE DISTORTIONS AND INEQUITIES THAT PUSH UP COSTS IN THE CURRENT SYSTEM SPECIFICALLY THEY ARGUE IT WILL NO LONGER BE NECESSARY FOR HOSPITALS AND DOCTORS TO OVERCHARGE THOSE WHO DO HAVE INSURANCE TO PAY FOR THOSE WHO DON'T THE RESULT THEY CONTEND IS THAT EMPLOYERS WHO NOW OFFER VERY GENEROUS HEALTH BENEFITS WILL BE ABLE TO AFFORD TO CONTINUE TO DO SO FOR PEOPLE ACCUSTOMED TO TOPNOTCH BENEFITS THERE IS NO REASON WHY THINGS HAVE TO LOOK ANY DIFFERENT THAN THEY DO NOW SAYS LAWRENCE LEWIN A PROMINENT HEALTHCARE CONSULTANT WHO ADVISED THE CLINTON ADMINISTRATION DURING THE TRANSITION I'M A BELIEVER BUT OTHERS JUST DON'T BUY IT UWE REINHARDT A HEALTHCARE ECONOMIST AT PRINCETON UNIVERSITY IS CONVINCED THAT MANY COMPANIES WILL TRY TO HIDE BEHIND THE STANDARD BENEFIT PACKAGE ADOPTED BY THE CLINTON ADMINISTRATION A PACKAGE THAT IS PROBABLY GOING TO BE LESS GENEROUS THAN THAT PROVIDED BY MOST LARGE COMPANIES THEY'RE GOING TO SAY THAT'S WHAT'S CONSIDERED FAIR FOR THE REST OF AMERICA' AND USE IT AS AN EXCUSE NOT TO OFFER ANYTHING MORE MR REINHARDT ASSERTS IN THE LONG RUN MOST EXPERTS IN THE FIELD SEE THE POTENTIAL FOR EVERYONE TO BENEFIT FROM A REVAMPING OF THE SYSTEM BY CREATING GIANT HEALTHINSURANCE PURCHASING NETWORKS PEOPLE AND COMPANIES THAT NOW HAVE VERY LITTLE LEVERAGE IN THE MARKET WOULD PRESUMABLY GAIN GREAT ADVANTAGE AND BY REORGANIZING THE SYSTEM TO BETTER CONTROL COSTS ALL EMPLOYERS AND EMPLOYEES COULD CONCEIVABLY BE BETTER OFF DOWN THE ROAD BUT HOW MOST AMERICANS REACT TO THE CLINTON PROPOSAL WON'T LIKELY BE DETERMINED BY SUCH A LONGTERM PERSPECTIVE BUT RATHER BY THEIR PERCEPTIONS OF ITS SHORTTERM IMPACT ON THEM PERSONALLY ONE THING YOU HAVE TO KEEP IN MIND IS THAT FOR MOST PEOPLE THEIR COVERAGE IS NOW SATISFACTORY SAYS HENRY SAVETH A PRINCIPAL WITH FOSTER HIGGINS A BENEFITS CONSULTING FIRM IN A RECENT WALL STREET JOURNAL/NBC NEWS POLL 74 WERE SATISFIED WITH THE QUALITY OF THEIR COVERAGE THOUGH ONLY 42 WERE SATISFIED WITH THE COST AT A CRITICAL WHITE HOUSE MEETING LATE LAST WEEK THE PRESIDENT AND HIS TOP ADVISERS TENTATIVELY AGREED TO GUARANTEE ALL AMERICANS A RELATIVELY MODEST HEALTHBENEFITS PACKAGE AKIN TO A STANDARD BLUE CROSSBLUE SHIELD PLAN BY 1996 AFTER THE MEETING SEVERAL PARTICIPANTS DESCRIBED THE BLUE CROSSBLUE SHIELD OPTION AS A 20TH PERCENTILE PLAN MEANING THAT 80 OF THE BENEFITS PACKAGES OFFERED BY LARGE COMPANIES ARE CONSIDERED TO BE MORE VALUABLE HOWEVER OFFICIALS CAUTION THAT SUCH ACTUARIAL ESTIMATES CAN BE VERY MISLEADING FOR INSTANCE WHILE THE CLINTON PACKAGE WILL PROBABLY REQUIRE HIGHER OUTOFPOCKET PAYMENTS THAN THE PLANS OFFERED BY MANY LARGE COMPANIES THE ADMINISTRATION PACKAGE IS LIKELY TO COVER A RELATIVELY WIDE RANGE OF MEDICAL SERVICES SPECIAL EMPHASIS UNDOUBTEDLY WILL BE PLACED ON PREVENTIVE CARE WE'RE GOING FOR A COMPREHENSIVE BENEFITS PACKAGE NOT BARE BONES SAYS LAURA TYSON THE CHAIRWOMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MOREOVER IF THE ADMINISTRATION'S PROPOSAL WERE TO GO THROUGH THERE WOULD BE A HUGE CARROT FOR EVERYONE RIGHT FROM THE BEGINNING THE SECURITY OF KNOWING THAT NO MATTER IF THEY FALL ILL CHANGE EMPLOYERS OR BECOME UNEMPLOYED THEY WILL HAVE HEALTH COVERAGE THE PROSPECT OF HAVING NO COVERAGE ONE DAY SCARES THE HECK OUT OF EVERYBODY SAYS ROBERT BLENDON A HEALTH POLICY PROFESSOR AT HARVARD UNIVERSITY THEREFORE HE SAYS SECURITY IS ONE THING FOR WHICH PEOPLE ARE WILLING TO SACRIFICE THE CRUCIAL QUESTION IS JUST HOW MUCH ONE TELLING FACTOR WILL BE WHETHER THE CLINTON PROPOSAL WINDS UP DENYING EMPLOYERS THE ABILITY TO TAKE TAX DEDUCTIONS ON HEALTH BENEFITS THAT EXCEED THE STANDARD PACKAGE IF SUCH A TAX CAP IS PUT IN PLACE THAT MAY INDUCE EMPLOYERS OFFERING SUPERIOR PACKAGES TO CUT BACK ONE TOP ADVISER SAYS AN IDEA BEING STRONGLY CONSIDERED IS DISALLOWING THE TAX ADVANTAGE ON ANY MEDICAL SERVICES THAT EXTEND BEYOND WHAT'S IN THE STANDARD PLAN COSMETIC SURGERY SAY OR PRIVATE HOSPITAL ROOMS WHILE CONTINUING TO PROVIDE A TAX BREAK FOR EMPLOYERS WHO HELP COVER COPAYMENTS AND DEDUCTIBLES ANOTHER THING THAT COULD THREATEN BENEFITS IS THE NATIONAL HEALTH SPENDING BUDGET THAT THE CLINTON PROPOSAL WOULD PUT INTO EFFECT IF AS EXPECTED THE STATES ARE GIVEN BROAD DISCRETION TO ENFORCE SUCH A BUDGET THEY MIGHT BE PRESSURED INTO LIMITING THE ABILITY OF EMPLOYERS TO OFFER EXTREMELY RICH HEALTH PLANS DESPITE THE POTENTIAL PITFALLS FOR THOSE WITH VERY GENEROUS HEALTH PLANS UNION LEADERS SAY THEY DON'T FEAR LOSING ANYTHING AT THE BARGAINING TABLE SHOULD THE CLINTON PACKAGE GO THROUGH IF THE WHITE HOUSE CAN PROVE TO BUSINESSES THAT THEIR HEALTHCARE COSTS WILL BE REINED IN DURING THE YEARS AHEAD LABOR OFFICIALS SAY THEY'RE CONFIDENT THAT THEY CAN HOLD THE LINE FOR WORKERS FOR EMPLOYERS IT'S NOT JUST ALTRUISM SAYS GERRY SHEA OF THE SERVICE EMPLOYEES UNION THEY KNOW THEY PAY A PRICE NOW FOR PEOPLE WHO DON'T HAVE HEALTH COVERAGE SO THEY'RE WILLING TO PAY SOMETHING TO BRING PEOPLE INTO THE SYSTEM 9305260104 930526 WALMART MAKES 1 BILLION OFFERING FOR '93 EXPANSION BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL BENTONVILLE ARK WALMART STORES INC THE NATION'S BIGGEST RETAILER ISSUED 1 BILLION IN DEBT SECURITIES TO HELP FINANCE ITS EXPANSION PLANS FOR THE CURRENT FISCAL YEAR THE OFFERING WALMART'S SECOND SINCE FEBRUARY FOR A TOTAL OF 175 BILLION WAS PROMPTED LARGELY BY PROBLEMS IN THE COMMERCIAL REAL ESTATE MARKET COMPANY OFFICIALS AND ANALYSTS SAID THAT HAS FORCED THE DISCOUNT RETAILER TO ACQUIRE LAND AND BUILD MANY OF ITS OWN STORES RATHER THAN LEASE PROPERTY FROM DEVELOPERS AS IT HAS IN THE PAST IN THE LAST TWO OR THREE YEARS THE TREND HAS CHANGED WITH THE SAVINGS AND LOAN PROBLEMS A LOT OF SOURCES OF FUNDING FOR DEVELOPERS BEGAN TO DRY UP SAID WALMART SPOKESMAN DON SHINKLE FOR THAT REASON WALMART AS A COMPANY IS FINANCING MORE OF ITS PROJECTS WALMART SAYS IT PLANS TO OPEN 255 NEW STORES IN THE CURRENT FISCAL YEAR WHICH ENDS JAN 31 1994 THAT INCLUDES 150 WALMART STORES 65 OF THE COMPANY'S DEEPDISCOUNT SAM'S CLUBS AND 40 WALMART SUPERCENTERS WHICH COMBINE GENERAL MERCHANDISE AND GROCERIES ANALYSTS SAY WALMART'S EMERGING ROLE AS BORROWER AND DEVELOPER HASN'T DRAMATICALLY AFFECTED THE RETAILER'S CONSERVATIVE BALANCE SHEET IT MAKES A LOT OF SENSE FOR WALMART TO GO OUT AND BORROW MONEY BECAUSE THE RETURN ON BUILDING THOSE STORES IS SUBSTANTIALLY GREATER THAN THE INTEREST RATE THEY'RE BORROWING AT SAID DONALD SPINDEL AN ANALYST FOR AG EDWARDS & SONS INC IN ST LOUIS IT JUST MEANS THAT TO BE ABLE TO SUSTAIN THE KIND OF GROWTH THEY'RE TRYING TO ACHIEVE THEY'VE HAD TO BECOME MORE INVOLVED MORE AGGRESSIVE IN TAKING THE LEAD IN GETTING THESE SITES DEVELOPED THE 1 BILLION ISSUE CONSISTED OF 500 MILLION OF NOTES DUE JUNE 1 2003 WHICH WERE PRICED TO YIELD 653 AND 500 MILLION OF DEBENTURES DUE JUNE 1 2013 PRICED TO YIELD 7327 BOTH ARE NONCALLABLE 9305260103 930526 ECONOMY GOP SENATORS PLAN ALTERNATIVE HEALTH PROPOSAL BILL INCORPORATES CLINTON'S MANAGED COMPETITION' BUT AVOIDS REGULATION BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A GROUP OF MODERATE REPUBLICAN SENATORS IS QUIETLY WORKING ON A HEALTHREFORM PROPOSAL THAT INCORPORATES SOME OF THE MANAGED COMPETITION FEATURES OF PRESIDENT CLINTON'S PLAN WITHOUT MUCH OF THE GOVERNMENT REGULATION LED BY SEN JOHN CHAFEE OF RHODE ISLAND THE REPUBLICANS HAVE BEEN WORKING BEHIND CLOSED DOORS FOR MONTHS TO DRAFT THEIR OWN HEALTH BILL SOME SUPPORTERS HOPE THE LEGISLATION COULD PROVIDE A MIDDLE GROUND THAT WOULD UNITE MODERATE REPUBLICANS AND CONSERVATIVE DEMOCRATS SOME OF WHOM HAVE GROWN INCREASINGLY DISSATISFIED WITH SOME OF THE REGULATORY FEATURES OF THE EMERGING CLINTON HEALTH BILL LIKE THE PRESIDENT'S PLAN THE REPUBLICANS' PROPOSAL WOULD DEFINE A PACKAGE OF BASIC HEALTH BENEFITS FOR ALL AMERICANS AND IT WOULD ESTABLISH REGIONAL HEALTHINSURANCE PURCHASING NETWORKS BUT THE PURCHASING NETWORKS PROBABLY WOULDN'T BE GOVERNMENTAL BODIES AND THEY PROBABLY WOULD REPRESENT ONLY BUSINESSES WITH FEWER THAN 100 EMPLOYEES MOREOVER THE PLAN LACKS TWO OF THE MOST CONTROVERSIAL FEATURES OF THE HEALTHREFORM PACKAGE MR CLINTON IS EXPECTED TO UNVEIL NEXT MONTH A GOVERNMENT REQUIREMENT THAT ALL EMPLOYERS PAY FOR AT LEAST PART OF THEIR WORKERS' COVERAGE AND A NATIONAL BUDGET FOR HEALTH EXPENDITURES ACCORDING TO PEOPLE FAMILIAR WITH THE GOP DELIBERATIONS THE GROUP OF REPUBLICANS IS CONSIDERING REQUIRING INDIVIDUALS RATHER THAN EMPLOYERS TO BUY HEALTH COVERAGE POOR PEOPLE WOULD RECEIVE FEDERAL SUBSIDIES PROBABLY IN THE FORM OF TAX CREDITS TO HELP PAY FOR THEIR COVERAGE THE TAX CREDITS WOULD BE REFUNDABLE MEANING PEOPLE WITH NO TAX LIABILITY WOULD RECEIVE PAYMENTS FROM THE GOVERNMENT AS WITH THE CLINTON PLAN THE KEY QUESTION OF HOW TO FINANCE THE PACKAGE HAS YET TO BE RESOLVED ONE MEASURE THE GOP LAWMAKERS ARE STRONGLY CONSIDERING IS LIMITING THE TAX BREAKS EMPLOYERS AND EMPLOYEES RECEIVE FOR EMPLOYERPROVIDED HEALTH COVERAGE PRESIDENT CLINTON ALSO IS GRAPPLING WITH WHETHER TO IMPOSE A SOCALLED TAX CAP THE PROPOSAL SEN CHAFEE'S GROUP IS CONSIDERING IS SIMILAR TO A CONSERVATIVE DEMOCRATIC MANAGED COMPETITION HEALTH BILL ASKED ABOUT THE POTENTIAL FOR A MEETING OF THE MINDS WITH REPUBLICANS REP JIM COOPER D TENN THE LEADING SPONSOR OF THE CONSERVATIVE DEMOCRATS' PLAN SAID HE COULDN'T COMMENT BECAUSE HE HADN'T SEEN THE DETAILS OF THE CHAFEE BILL I'M HOPEFUL THAT HEALTHCARE REFORM IS POSSIBLE IN 1993 WITH BIPARTISAN SUPPORT FOR MANAGED COMPETITION REP COOPER SAID BUT BESIDES HAVING TO PERSUADE CONSERVATIVE DEMOCRATS THE GROUP LED BY SEN CHAFEE MAY HAVE SOME TROUBLE WITHIN THEIR OWN PARTY A GROUP OF CONSERVATIVE GOP SENATORS LED BY PHIL GRAMM OF TEXAS IS WORKING ON ITS OWN HEALTHREFORM BILL 9305260102 930526 BUSINESS BRIEF CONNER PERIPHERALS INC LOSS EXPECTED FOR 2ND PERIOD ON PRICE WAR PRODUCT SHIFT CONNER PERIPHERALS INC SAID FIERCE DISCOUNTING AMONG DISK DRIVE MAKERS PLUS A STEPPEDUP PRODUCT SHIFT WILL CAUSE IT TO REPORT A LOSS FROM OPERATIONS FOR ITS SECOND QUARTER CONNER SAID THE TRADITIONAL SUMMER SLOWDOWN IN COMPUTER SALES COULD ALSO CAUSE A THIRDQUARTER LOSS BUT THE COMPANY EXPECTS TO SEE SOME BENEFITS FROM ITS ACTIONS BY THE FOURTH QUARTER CONNER IS IN THE MIDST OF A CHANGEOVER FROM BEING A SUPPLIER OF WINCHESTER DISK DRIVES TO BEING A SUPPLIER OF HIGHER CAPACITY DISK DRIVES FINIS CONNER THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE SAID THIS TRANSITION COUPLED WITH CONTINUED PRESSURES IN THE INDUSTRY WILL DEPRESS PROFIT MARGINS IN THE 1992 SECOND QUARTER CONNER BASED IN SAN JOSE CALIF REPORTED EARNINGS OF 46 MILLION OR 77 CENTS A SHARE INCLUDING A GAIN OF 43 MILLION ON THE SALE OF A PARTIAL INTEREST IN A SUBSIDIARY 9305260101 930526 BUSINESS BRIEF US HOME CORP REORGANIZATION PLAN CLEARED BY BANKRUPTCY COURT JUDGE US HOME CORP SAID ITS PLAN OF REORGANIZATION HAS BEEN CONFIRMED BY A NEW YORK BANKRUPTCY COURT THE HOME BUILDER BASED IN HOUSTON SAID IT EXPECTS TO EMERGE FROM CHAPTER 11 DURING THE LATTER PART OF JUNE SIMULTANEOUSLY WITH THE CLOSING OF A PROPOSED PUBLIC OFFERING OF 175 MILLION PRINCIPAL AMOUNT OF SENIOR NOTES DUE 2003 THE UNDERWRITER IS DILLON READ & CO AND PROCEEDS WILL BE USED TO PAY UNSECURED CREDITORS THE REORGANIZATION PLAN CALLS FOR THE ISSUANCE OF NEW DEBT PLUS NEW COMMON STOCK AND NEW PREFERRED SHARES TO SETTLE 297 MILLION IN UNSECURED CLAIMS THE COMPANY HAS SAID 9305260100 930526 MUTUAL FUNDS' GROWTH SPURT LEAVES SOME FEARFUL OF SLIDE BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FAT HAPPY AND HAZARDOUS THAT'S THE VIEW SOME PEOPLE HAVE OF THE MUTUAL FUND INDUSTRY AS ITS MOVERS AND SHAKERS CONVENE IN WASHINGTON TODAY FOR THEIR ANNUAL CONVENTION THE FEAR AMONG SOME INVESTORS IS THAT THE FUND INDUSTRY'S RAPID GROWTH AND IMMENSE SIZE WHICH SO FAR HAVE HELPED TO LIFT STOCK PRICES TO NEW HEIGHTS WILL WORSEN SOME FUTURE DOWNTURN IN THE STOCK MARKET FUND EXECUTIVES PLAY DOWN THE FEARS BUT DON'T DISMISS THEM OUT OF HAND WITH THE INDUSTRY'S RECENT GROWTH THERE ARE PROBABLY MORE INEXPERIENCED BUYERS OF FUNDS RECOMMENDED BY INEXPERIENCED SELLERS AND RUN BY INEXPERIENCED MANAGERS SAYS LAWRENCE J LASSER CHIEF EXECUTIVE OF PUTNAM INVESTMENTS THAT'S A COMBINATION THAT COULD LEAD TO DISAPPOINTMENT FOR SOME INVESTORS SIGNS OF THE FUND INDUSTRY'S PROSPERITY ARE ABUNDANT SOME THIS SUMMER BARRING A STEEP DECLINE IN FINANCIAL MARKETS THE ASSETS HELD BY STOCK BOND AND MONEY MARKET MUTUAL FUNDS SHOULD SURPASS RETAIL DEPOSITS AT BANKS ACCORDING TO STRATEGIC INSIGHT A NEW YORK RESEARCH FIRM FUND ASSETS COULD SOON PASS 2 TRILLION FOR THE FIRST TIME EVER AS INVESTORS HAVE FUNNELED TENS OF BILLIONS OF DOLLARS INTO STOCK AND BOND MUTUAL FUNDS EACH MONTH FUND EXECUTIVES HAVE REWARDED THEMSELVES HANDSOMELY THE MEDIAN PAY FOR TOP MUTUAL FUND EXECUTIVES AT 10 PUBLICLY TRADED FUND COMPANIES INCREASED 18 IN 1992 FUND ACTION A NEWSLETTER REPORTED THIS WEEK THE AVERAGE PAY FOR THE TOP FIVE EXECUTIVES AT JOHN NUVEEN & CO WAS AN EYEPOPPING 10 MILLION ACCORDING TO FUND ACTION A NUVEEN SPOKESMAN SAYS THAT MOST OF THAT SUM CAME FROM RESTRICTED STOCK AWARDED THE EXECUTIVES WHEN NUVEEN FIRST SOLD SHARES TO THE PUBLIC THE MOST EXPLOSIVE GROWTH IN THE INDUSTRY HAS BEEN SALES OF FUNDS THROUGH BANKS BANKS SELL BOTH MUTUAL FUNDS THAT THEY MANAGE AND FUNDS MANAGED BY MORE TRADITIONAL FUND COMPANIES FIVE YEARS AGO SALES OF FUNDS THROUGH BANKS WERE SMALL BUT IN THE FIRST HALF OF 1992 ACCORDING TO THE INVESTMENT COMPANY INSTITUTE BANKS SOLD 23 BILLION IN STOCK AND BOND FUNDS OR 14 OF ALL FUND SALES THAT COMPARES WITH SALES OF 28 BILLION BY BANKS DURING ALL OF 1991 MEMBERS OF CONGRESS HAVE VOICED CONCERNS ABOUT THE GROWTH OF MUTUAL FUNDS BEING SOLD THROUGH BANKS MICHIGAN DEMOCRATIC REP JOHN DINGELL CHAIRMAN OF THE HOUSE COMMITTEE ON ENERGY AND COMMERCE QUESTIONS HOW WELL BANK CUSTOMERS UNDERSTAND THE RISKS OF THE STOCK AND BOND FUNDS THEY ARE BEING SOLD HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS WANTS TO STUDY WHETHER ALL THE MONEY FLOWING OUT OF BANK DEPOSITS INTO MUTUAL FUNDS MAKES IT HARDER FOR BANKS TO LEND WORSENING THE CREDIT CRUNCH SOME MARKET ANALYSTS WORRY THAT ALL OF THE MONEY POURING INTO STOCK FUNDS AND PUSHING UP PRICES MAY ONE DAY FLOW OUT AGAIN AS ALL THE GREENHORN INVESTORS REACT WITH DISAPPOINTMENT TO A FUTURE MARKET DECLINE SUCH AN EXODUS AFTER ALL HAS HAPPENED BEFORE DURING THE 1970S FUNDS HAD TO SELL STOCKS IN THEIR PORTFOLIOS TO PAY OFF DEPARTING SHAREHOLDERS MAKING FUNDS NET SELLERS OF 14 BILLION IN EQUITIES IN THE DECADE MOST PROFESSIONALS REALIZE THE MUTUAL FUND MANIA IS NOT GOING TO CREATE A BEAR MARKET SAYS JAMES STACK PRESIDENT OF INVESTECH RESEARCH TODAY'S STOCK PRICES HIGH IN RELATION TO SUCH BENCHMARKS AS EARNINGS AND DIVIDENDS MAY REMAIN ELEVATED FOR A LONG TIME HE SAYS AS THEY DID IN THE 1960S BUT WHEN THE STOCK MARKET FALLS FUND SHAREHOLDERS RUSHING FOR THE EXIT COULD CREATE THE MOST SEVERE BEAR MARKET IN ALMOST 20 YEARS SINCE 197374 MR STACK SAYS IN RECENT YEARS FUND INVESTORS HAVE TENDED TO RIDE OUT BEAR MARKETS WITHOUT SELLING THEIR FUNDS BUT MR STACK SAYS THAT'S BECAUSE THE MARKET DECLINES IN 1980 1987 AND 1990 WERE THE MILDEST ON RECORD IN TERMS OF HOW LONG IT TOOK STOCK INVESTORS TO RECOUP THEIR LOSSES HE THINKS A LONG BEAR MARKET LASTING MORE THAN SIX MONTHS AND WITH DECLINES OF 20 TO 40 MIGHT START A STAMPEDE OUT OF STOCK FUNDS HISTORY SUGGESTS BIG BEAR MARKETS ARE NOT THAT UNUSUAL MR STACK SAYS AND IF ANYTHING WE'RE DUE FOR ONE IN THE NEXT DECADE SOME FUND OFFICIALS DISMISS SUCH GLOOMY TALK I DON'T SEE WHY HAVING FUNDS AS SELLERS OF STOCKS WOULD BE ANY DIFFERENT THAN HAVING MILLIONS OF INDIVIDUALS AS SELLERS SAYS MATTHEW P FINK PRESIDENT OF THE INVESTMENT COMPANY INSTITUTE THE BEAR ARGUMENT IS THAT FUNDS HAVE LURED INVESTORS INTO THE MARKET WHO WOULD HAVE NO STOMACH FOR DIRECT INVESTMENTS IN STOCKS THEY POINT TO THE RAPID GROWTH OF FUNDS SOLD THROUGH BANKS TO BANK DEPOSITORS OF COURSE THE FUND INDUSTRY ITSELF MIGHT KEEP THOSE ASSETS IF INVESTORS SHIFT FROM STOCK FUNDS INTO BOND OR MONEY MARKET FUNDS FUND EXECUTIVES EXPECT THE TORRENT OF CASH INTO STOCK FUNDS TO SLOW EVENTUALLY BUT THEY DON'T EXPECT A REPEAT OF THE SUSTAINED OUTFLOW THAT OCCURRED IN THE 1970S I THINK THERE'S LITTLE LIKELIHOOD THAT THE GROWTH OF THE LAST TWO YEARS IS A SUSTAINABLE LEVEL OF GROWTH SAYS ROGER SERVISON A MANAGING DIRECTOR AT FIDELITY INVESTMENTS IF THERE WAS A CLASS I WOULD WORRY MOST ABOUT IT WOULD BE PEOPLE BUYING MUTUAL FUNDS FOR THE FIRST TIME THROUGH A BANK BUT HE EXPECTS CONTINUED STRONG BUYING OF FUNDS FROM 401K AND OTHER RETIREMENT PLANS THAT FREQUENTLY USE MUTUAL FUNDS AS INVESTMENT VEHICLES AND HE THINKS THAT BABY BOOMERS WILL CONTINUE TO PUT MONEY INTO STOCK FUNDS INSIDE AND OUTSIDE RETIREMENT PLANS WHILE SOME EXECUTIVES ARGUE THAT MUTUAL FUND SHAREHOLDERS HAVE EVOLVED INTO LONGTERM INVESTORS CONTENT TO SIT TIGHT JOHN C BOGLE CHAIRMAN OF VANGUARD GROUP CALLS THAT THEORY A MYTH STATISTICS ON FUND REDEMPTION RATES SUGGEST THAT FUND INVESTORS TENDED TO STAY IN A FUND FOR ABOUT 14 YEARS IN THE 1960S MR BOGLE SAYS REDEMPTION RATES HAVE INCREASED SINCE THEN AND NOW SUGGEST TO MR BOGLE THAT INVESTORS ONLY HOLD FOR EIGHT YEARS MR BOGLE DOUBTS THE ENTIRE STOCK MARKET WOULD BE ROILED BY FUND SELLING BECAUSE MANY OTHER FACTORS INFLUENCE THE MARKET HE DOES THINK REDEMPTIONFORCED SELLING BY MUTUAL FUNDS COULD HAMMER NARROW SECTORS OF THE MARKET THIS IS A MARKETSENSITIVE BUSINESS MR BOGLE SAYS AFTER ALL INVESTORS FLED FROM THE POOR PERFORMANCE OF ADJUSTABLERATE MORTGAGE FUNDS AND SHORTTERM GLOBAL INCOME FUNDS PEOPLE SHOULD KNOW WHAT THEY'RE BUYING MR BOGLE SAYS IF THEY DON'T THAT'S THE PROBLEM 9305260099 930526 BUSINESS BRIEF DIGITAL EQUIPMENT CORP WORLD'S FASTEST' PC IS SET TO CHALLENGE INTEL'S CHIP DIGITAL EQUIPMENT CORP ANNOUNCED WHAT IT CALLED THE WORLD'S FASTEST PERSONAL COMPUTER CLAIMING IN SOME TASKS TWICE THE POWER OF PCS USING THE NEXTGENERATION PENTIUM CHIP FROM INTEL CORP THE NEW PC IS MADE FOR MICROSOFT CORP'S WINDOWS NT SOFTWARE AND IS THE FIRST TO TAKE ADVANTAGE OF ITS ABILITY TO RUN ON POWERFUL RISC OR REDUCED INSTRUCTIONSET CHIPS THAT CHALLENGE INTEL'S DESIGN DIGITAL SAID IT IS TARGETING THE POWER USER WITH THE FIRST EDITION OF ITS NEW PC AND SAID IT WOULD DELIVER OTHER NT PCS USING ITS ALPHA RISC DESIGN IN COMING MONTHS INCLUDING LOWERCOST MODELS THE MAYNARD MASS COMPUTER MAKER SAID THE FIRST ALPHA PC WOULD SELL FOR 6795 FULLY LOADED WITH A COLOR MONITOR 16 MEGABYTES OF MEMORY A 245 MEGABYTE HARD DISK AND FLOPPY AND CD DISK DRIVES BUT THE ALPHA PCS CAN'T GO ON SALE UNTIL MICROSOFT IS READY WITH WINDOWS NT WHICH HAS BEEN DELAYED AND IS NOW EXPECTED IN LATE JULY 9305260097 930526 BUSINESS BRIEF GENERAL ELECTRIC CO UNIT GETS TURBINE ORDERS THAT TOTAL 925 MILLION GE POWER GENERATION A UNIT OF GENERAL ELECTRIC CO ANNOUNCED THREE ORDERS TOTALING 925 MILLION FOR GAS TURBINES THE GE UNIT IN SCHENECTADY NY LISTED A 39 MILLION ORDER FROM SIERRA PACIFIC POWER CO FOR TWO TURBINES FOR THE TRACY POWER STATION NEAR RENO NEV A 35 MILLION ORDER FROM BRUNEI FOR THREE TURBINES AT THE GADONG POWER STATION IN THE SOUTHEAST ASIAN NATION AND AN 185 MILLION ORDER FOR A TURBINE AND OTHER EQUIPMENT FOR THE CANE ISLAND COMBINEDCYCLE PROJECT NEAR KISSIMMEE FLA THE PLANT IS A JOINT PROJECT OF THE KISSIMMEE UTILITY AUTHORITY AND THE FLORIDA MUNICIPAL POWER AGENCY 9305260096 930526 CROSS TIMBERS OIL PLAN FORT WORTH TEXAS CROSS TIMBERS OIL CO SAID IT AGREED TO ACQUIRE INTERESTS IN PRODUCING OIL AND NATURAL GAS PROPERTIES FROM ATLANTIC RICHFIELD CO FOR 371 MILLION CROSS TIMBERS SAID THE PROPERTIES ARE IN WEST TEXAS AND SOUTHEASTERN NEW MEXICO CLOSING IS EXPECTED AROUND JUNE 30 CROSS TIMBERS SAID THE COMPANY ESTIMATES IT WILL ACQUIRE 57 MILLION BARRELS OF PROVED OIL RESERVES AND 11 BILLION CUBIC FEET OF NATURAL GAS 9305260095 930526 WHO'S NEWS PRUDENTIAL INSURANCE NAMES GROUP DIRECTOR AT ITS SECURITIES UNIT NEW YORK PRUDENTIAL SECURITIES INC NAMED JOHN MURRAY DIRECTOR OF ITS CORPORATE RISK MANAGEMENT GROUP MAKING HIM ONE OF FIVE OFFICIALS REPORTING DIRECTLY TO HARDWICK SIMMONS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR MURRAY 56 YEARS OLD HAD BEEN AN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT PRUDENTIAL FOR SIX YEARS HE WILL ASSUME HIS NEW DUTIES JULY 1 HE ALSO WAS NAMED TO THE FIRM'S OPERATING COMMITTEE THE FIRM HAS NOT NAMED A NEW CHIEF FINANCIAL OFFICER TO SUCCEED MR MURRAY MR MURRAY SUCCEEDS JAMES GAHAN 61 WHO PLANS TO RETIRE AT THE END OF NEXT MONTH MR GAHAN IS THE LAST PRUDENTIAL EXECUTIVE WITH THE TITLE OF VICE CHAIRMAN A SPOKESMAN SAID THE FIRM HAD NO IMMEDIATE PLANS TO GIVE THE TITLE TO ANYONE ELSE PRUDENTIAL SECURITIES HAS NO CHAIRMAN THE SECURITIES FIRM IS A SUBSIDIARY OF PRUDENTIAL INSURANCE CO OF AMERICA MR MURRAY WILL OVERSEE THE LAW COMPLIANCE NEW PRODUCTS AND DIRECT INVESTMENTS AREAS DIRECT INVESTMENT ACTIVITIES INCLUDE SALES OF LIMITED PARTNERSHIPS PRUDENTIAL CURRENTLY FACES A PLETHORA OF LAWSUITS BY INVESTORS IN PARTNERSHIPS IT SOLD IN THE 1980S AND IS CURRENTLY SEEKING TO SELL A CONTROVERSIAL SERIES OF OIL AND GAS PARTNERSHIPS IT SPONSORED SEPARATELY PRUDENTIAL NAMED MICHAEL J SHEA 37 SENIOR VICE PRESIDENT AND DIRECTOR OF INSTITUTIONAL EQUITY SALES HE SUCCEEDS JM TAYLOR 45 WHO WAS NAMED EXECUTIVE VICE PRESIDENT AND DIRECTOR OF PRUDENTIAL'S EQUITY GROUP MR SHEA WAS PREVIOUSLY A SENIOR VICE PRESIDENT FOR INSTITUTIONAL EQUITY INVESTMENTS IN THE FIRM'S CHICAGO OFFICE 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 9305260094 930526 BUSINESS BRIEF CATERPILLAR INC COMPLAINT ALLEGES PREFERENCE GRANTED TO PICKET BREAKERS THE NATIONAL LABOR RELATIONS BOARD ISSUED AN UNFAIR LABOR PRACTICE COMPLAINT AGAINST CATERPILLAR INC CHARGING THAT THE COMPANY UNFAIRLY GRANTED SUPERSENIORITY TO WORKERS WHO CROSSED PICKET LINES DURING A STRIKE IN THE SPRING OF 1992 THESE WORKERS WERE GIVEN PREFERENCE IN JOB SELECTION AND SHIFT SCHEDULING OVER EMPLOYEES WITH GREATER SENIORITY WHO DIDN'T CROSS UNITED AUTO WORKERS UNION PICKET LINES AT CATERPILLAR PLANTS THE NLRB SAID IN THE MAY 21 COMPLAINT A HEARING ON THE COMPLAINT HAS BEEN SET FOR JUNE 29 IN PEORIA ILL WHERE CATERPILLAR IS BASED A CATERPILLAR SPOKESMAN SAID THE COMPANY WAS CONFIDENT THAT THE COMPLAINT WILL BE DISMISSED 9305260093 930526 BUSINESS BRIEF WORTHEN BANKING CORP PLAN TO BUY CONCERN OWNED BY STEPHENS FAMILY NULLED WORTHEN BANKING CORP CURRENTLY BEING INVESTIGATED BY THE FEDERAL RESERVE BOARD FOR ITS TIES TO ARKANSAS'S POWERFUL STEPHENS FAMILY SAID IT WAS TERMINATING A PREVIOUSLY ANNOUNCED ACQUISITION OF STEPHENS DIVERSIFIED LEASING INC WHICH IS OWNED PRIMARILY BY THE STEPHENS FAMILY ANDREW MELTON WORTHEN'S CHIEF FINANCIAL OFFICER SAID THE ACQUISITION FOR STOCK VALUED AT 279 MILLION HAD BEEN HELD UP BY THE INVESTIGATION AND THAT THE AGREEMENT BETWEEN THE COMPANIES HAD EXPIRED MARCH 31 MR MELTON SAID THE FEDERAL RESERVE HADN'T BLOCKED THE DEAL BUT WORTHEN IN LITTLE ROCK ARK HADN'T BEEN SUCCESSFUL GETTING IT APPROVED IN A MANNER WE WANTED IT APPROVED THE STEPHENS FAMILY OWNS STEPHENS INC AN INFLUENTIAL LITTLE ROCK INVESTMENT COMPANY AS WELL AS A 38 STAKE IN WORTHEN ARKANSAS'S LARGEST BANK HOLDING COMPANY AS PREVIOUSLY REPORTED THE FEDERAL RESERVE HAS BEEN LOOKING INTO WORTHEN'S CLOSE TIES WITH THE STEPHENS FAMILY 9305260092 930526 SEC SAYS 1 MILLION OF ANTAR'S HOLDINGS RECOVERED IN CANADA WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION SAID A COURTAPPOINTED TRUSTEE HAS RECOVERED A LITTLE MORE THAN 1 MILLION IN ASSETS FROM A CANADIAN ACCOUNT CONTROLLED BY EDDIE ANTAR FOUNDER OF THE NOWDEFUNCT CRAZY EDDIE INC ELECTRONICS RETAIL CHAIN IN JANUARY MR ANTAR WAS EXTRADITED FROM ISRAEL TO FACE TRIAL ON SECURITIES FRAUD AND RACKETEERING CHARGES FEDERAL AUTHORITIES SAID THAT HE AND OTHERS BILKED STOCKHOLDERS OF CRAZY EDDIE OUT OF 74 BILLION BY INFLATING THE COMPANY'S FINANCIAL RESULTS THE COMPANY LATER WENT INTO BANKRUPTCY COURT PROCEEDINGS AND IS NOW DEFUNCT MR ANTAR WHO PLEADED INNOCENT IN JANUARY HAS BEEN HELD BY AUTHORITIES SINCE A US COURT FOUND HIM IN CONTEMPT FOR FAILING TO RETURN 52 MILLION HELD IN OVERSEAS BANK ACCOUNTS THE 103 MILLION IN CANADA HAS BEEN FROZEN SINCE LAST JULY WHEN REGULATORS IN QUEBEC ISSUED AN ORDER FREEZING FUNDS MR ANTAR HELD IN THE MONTREAL BRANCH OF A CANADIAN BANK THE FREEZE ORDER WAS ISSUED IN RESPONSE TO A REQUEST FROM THE SEC UNDER A 1988 MEMORANDUM OF UNDERSTANDING WITH CANADIAN REGULATORS THE SEC SAID THE REQUEST MARKED THE FIRST TIME THE SEC USED A MEMORANDUM OF UNDERSTANDING TO SEEK AN ASSET FREEZE THE AGENCY HAS SIGNED SIMILAR MEMORANDUMS WITH OTHER FOREIGN REGULATORS SEC OFFICIALS SAID THAT WHILE IT'S TYPICAL FOR THE AGENCY TO GET A FREEZE OF DISPUTED ASSETS IN OTHER COUNTRIES RARELY DOES IT MANAGE TO ACTUALLY GET THE ASSETS TRANSFERRED BACK TO THE US THE TRUSTEE EARLIER RECOVERED ABOUT 6 MILLION OF MR ANTAR'S ASSETS IN ADDITION THE SEC AND THE TRUSTEE HAVE OBTAINED ORDERS FREEZING ABOUT 135 MILLION IN ASSETS HELD IN BRITAIN LIECHTENSTEIN AND ISRAEL THE SEC SAID 9305260091 930526 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9305260090 930526 REVIEW & OUTLOOK EDITORIAL SADDAM AGAIN WHAT IF SADDAM DECIDES THAT NOW'S THE TIME TO RETAKE NORTHERN IRAQ FROM THE KURDS DOMESTICALLY THE CLINTON ADMINISTRATION IS REELING AND ITS BOSNIA INITIATIVE HAS BOGGED DOWN MEANWHILE SADDAM'S MOST STALWART OPPONENT ACROSS THE BORDER IN TURKEY PRESIDENT TURGUT OZAL HAS JUST DIED OBSERVERS SAY THAT SADDAM HUSSEIN HAS AMASSED SOME 75000 TROOPS ALONG THE BORDER OF THE UN PROTECTED KURDISH ENCLAVES POSSIBLY IN PREPARATION TO RETAKE SOME OR ALL OF THE TERRITORY SET UP AS SAFE HAVENS FOR THE KURDS AFTER THE GULF WAR A REPRESENTATIVE OF THE IRAQI KURDS IN PARIS TOLD THE ASSOCIATED PRESS YESTERDAY THAT THREE MORE DIVISIONS INCLUDING TWO ELITE REPUBLICAN GUARD DIVISIONS HAD BEEN ADDED SADDAM MAY WELL LIKE THE CARDS HE IS NOW HOLDING THE WEST'S FAILURE TO STOP THE SERBS FROM SAVAGING BOSNIAN MUSLIMS HAS ANGERED THE MUSLIM WORLD THAT MEANS THE WEST MAY HAVE LESS ARAB AND MUSLIM SUPPORT FOR DEALING WITH SADDAM SIMULTANEOUSLY THE RISE OF IRANIANINSPIRED ISLAMIC RADICALISM DOES MORE TO DICTATE CAUTION AMONG US FRIENDS SUCH AS EGYPT THAN TO STAY IRAQ AGAIN TURKEY A MEMBER OF NATO HAS SUPPORTED THE IRAQI KURDS AND SERVES AS AN IMPORTANT BASE FOR ALLIED AIR FORCES ENFORCING THE NOFLY ZONE BUT NOW SADDAM SEES A COUNTRY ABSORBED IN ITS OWN INTERNAL POLITICAL AFFAIRS AFTER THE DEATH OF MR OZAL A POWERFUL LEADER AND CHAMPION OF KURDISH RIGHTS HIS DEATH HAS LEFT A VACUUM IN TURKISH POLITICS ELDERLY SULEYMAN DEMIREL HOPES TO WIND DOWN HIS LONG CAREER WITH HIS STINT AS PRESIDENT REMAINING ABOVE THE POLITICAL FRAY TURKEY IS ALSO DISTRACTED BY THE TERRORIST KURDISTAN WORKER'S PARTY PKK WHICH BROKE ITS UNILATERAL TWOMONTH CEASEFIRE MONDAY NIGHT TO INDULGE IN A KILLING SPREE THAT TOOK THE LIVES OF AT LEAST 33 PEOPLE ONE WONDERS WHO INSPIRED THIS SABOTAGE OF PKKTURKISH PEACE EFFORTS WITH THE WESTERN ALLIANCE PARALYZED AND TURKEY PREOCCUPIED THE KURDS IN THEIR UN SAFE HAVENS LOOK VULNERABLE TO AN ATTACK THE UN'S WORLD FOOD PROGRAM HAS BEEN ASKING FOR DONATIONS SAYING ITS RESOURCES FOR SUPPORTING THE KURDS ARE RUNNING LOW THE KURDS' 30000MAN RAGTAG FORCE WOULD BE NO MATCH FOR SADDAM WITHOUT WESTERN HELP SADDAM AS USUAL IS MAKING ADVANCE THREATS BOASTING ON TELEVISION THAT HE WILL WIN BACK THE KURDISH TERRITORIES US SECRETARY OF STATE WARREN CHRISTOPHER ISSUED A WARNING TO HIM YESTERDAY AND THE FRENCH FOREIGN MINISTRY BACKED UP THAT WARNING WE SUSPECT THAT THE PENTAGON KNOWS WHAT IT WOULD DO IF ASKED TO RESPOND TO ANY GENERAL INCURSION BY SADDAM INTO THE NORTH OR TOWARD KUWAIT FOR THAT MATTER STILL IT IS HARD NOT TO BE TROUBLED BY THE SENSE THAT THE TIME IS NOT PROPITIOUS FOR FIRM AND SUSTAINED DECISIONMAKING IN WASHINGTON THE CLINTON TEAM MAY BELIEVE IT IS TRAPPED INSIDE SOME SORT OF BELTWAYCREATED FISHBOWL OVER HAIRCUTS TRAVEL OFFICES AND OTHER MINUTIAE WHAT THIS WHITE HOUSE HAS TO LEARN THOUGH IS THAT EVERYTHING IT HAS DONE FROM THE EARLIEST DECISION ON GAYS IN THE MILITARY AND ON AND ON GETS TRANSMITTED ELECTRONICALLY TODAY INTO THE CHANCERIES OF ALL THE WORLD'S CAPITALS THAT INCLUDES SUCH REDOUBTS AS BAGHDAD THAT GLOBAL FISHBOWL MAY BE A HEAVY BURDEN FOR A US PRESIDENT BUT HOWEVER UNFAIRLY THE WHITE HOUSE MAY FEEL IT IS BEING TREATED AT THE MOMENT IT IS A CERTAINTY THAT ONE PERSON WHO DOESN'T MUCH CARE IS SADDAM HUSSEIN HE IS CLEARLY PROBING LOOKING FOR OPPORTUNITIES IN SUCH CIRCUMSTANCES IT IS NOT A BAD IDEA FOR AN AMERICAN PRESIDENT TO ISSUE A WARNING IN VERY SPECIFIC TERMS AND BE PREPARED TO BACK IT UP 9305260089 930526 WORLD MARKETS TOKYO STOCKS REBOUND FROM SETBACK ON REPORT OF MIDEAST TENSIONS LONDON SHARE PRICES RISE A WALL STREET JOURNAL NEWS ROUNDUP AFTER A MIDAFTERNOON SETBACK TUESDAY TOKYO SHARES REBOUNDED HELPED BY WANING EXPECTATIONS FOR FURTHER SELLING OF EQUITIES AND BY FIRMER BOND PRICES LONDON STOCKS GAINED LED BY A FEW BLUE CHIPS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10652 UP 092 REFLECTING INCREASES IN MARKETS IN THE AMERICAS EUROPE AND THE ASIA/PACIFIC REGION ALUMINUM STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9996 UP 327 OR 34 WITH AMAX OF THE US POSTING A 23 GAIN IN ITS LOCAL CURRENCY ADVANCED TECHNOLOGY/ MEDICAL DEVICES STOCKS TRAILED AT 6330 DOWN 098 OR 15 WITH ST JUDE MEDICAL OF THE US SLIDING 15 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH LOST 8131 POINTS MONDAY ROSE 15560 TO 2063176 ON WEDNESDAY THE NIKKEI INDEX ROSE 261 POINTS TO CLOSE THE MORNING SESSION AT 2063437 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 450 MILLION SHARES UP FROM 4141 MILLION SHARES ON MONDAY GAINERS EASILY OUTNUMBERED LOSERS 667361 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DECLINED 243 POINTS MONDAY ADDED 760 TO 161829 AFTER A STRONG START STOCKS SLUMPED ON NEWS THAT IRANIAN WARPLANES HIT A MAJOR IRANIAN REBEL BASE DEEP INSIDE IRAQ AMID HEIGHTENING TENSIONS ALONG THE IRAQIRAN BORDER WHERE THE TWO STATES FOUGHT THE 198088 GULF WAR ACCORDING TO THE IRANIAN OPPOSITION PRICES RECOVERED PARTLY IN A TECHNICAL CORRECTION SUPPORTED BY EFFORTS TO BOLSTER THE MARKET AHEAD OF THE FRIDAY LAUNCH OF INVESTMENT TRUST FUNDS BY MAJOR JAPANESE BROKERAGE FIRMS AS WELL AS MARKET STABILITY DESPITE OVERALL WEAK CORPORATE EARNINGS PERFORMANCES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 121 POINTS TO 28377 THE FT 30STOCK INDEX ADVANCED 129 POINTS TO 22065 VOLUME WAS 5912 MILLION SHARES COMPARED WITH 5105 MILLION SHARES A DAY EARLIER UNDERLYING SENTIMENT ABOUT THE BROADER LONDON MARKET REMAINED NEUTRAL AS INVESTORS CONTINUED WAITING FOR SIGNS THAT THE BRITISH ECONOMY IS PICKING UP MORE THAN HALF TUESDAY'S GAIN IN THE MAJOR INDEX REFLECTED PRICE MOVES BY A FEW BIG COMPANIES BOOSTED BY SPECIAL SITUATIONS SUCH AS POSITIVE EARNINGS AND BARGAINHUNTING IN FRANKFURT SHARE PRICES ROSE IN A TECHNICAL REBOUND IN LIGHT VOLUME THE DAX 30STOCK INDEX GAINED 1509 POINTS TO 161818 THE MARKET WAS BOOSTED BY A RALLY IN GERMAN BONDS WHICH PUSHED THE JUNE BOND FUTURES CONTRACT THROUGH A TECHNICAL RESISTANCE POINT IN TURN BENEFITING FINANCIAL STOCKS PARIS STOCKS' RALLY CONTINUED PUSHING PRICES UP 16 AS SEVERAL COMPANIES THAT HAD BEEN NEGLECTED RECENTLY BY THE MARKET GOT A BOOST FROM THE GENERAL EUPHORIA FUELED BY INTERESTRATE CUTS AND THE FRENCH GOVERNMENT'S BIG BONDISSUE PLAN IN AMSTERDAM PRICES ROSE BROADLY BOOSTED BY BARGAINHUNTING MADRID SHARES STRENGTHENED AFTER THE SPANISH CENTRAL BANK REDUCED A BENCHMARK INTEREST RATE STOCKHOLM EQUITIES ADVANCED TO A NEW HIGH FOR THIS YEAR IN HEAVY TRADING REBOUNDING FROM PROFITTAKING AFTER SENTIMENT WAS IMPROVED BY LOWER SWEDISH INTEREST RATES AND EUROPEAN BOURSES' STRONG PERFORMANCES SYDNEY SHARE PRICES ROSE LED BY INDUSTRIAL AND FINANCE STOCKS WHILE GOLD SHARES WEAKENED HONG KONG'S EXCHANGE MARKED A RECORD HIGH AS STOCKS CLIMBED ON STRONG INDICATIONS THE US WOULD APPROVE PREFERENTIAL TRADING RIGHTS FOR CHINA CLOSELY LINKED ECONOMICALLY TO HONG KONG TAIPEI STOCKS FELL FOR THE SIXTH CONSECUTIVE SESSION SEOUL PRICES TUMBLED AFTER SEVEN GAINS IN A ROW AS INVESTORS WERE DISAPPOINTED THAT THE RALLY HAD FAILED TO PUSH THE BOURSE TO A NEW HIGH FOR THE YEAR AMONG CORPORATE DEVELOPMENTS IN TOKYO YAMAHA MOTOR FELL 5 YEN TO 910 YEN 823 THE MOTORCYCLE MAKER'S PARENT PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 PLUMMETED 34 TO 497 BILLION YEN 45 MILLION FROM A YEAR EARLIER BECAUSE OF THE STRONGER YEN IN RELATION TO OTHER CURRENCIES AND A DROP IN INTEREST REVENUE SEIKO CLIMBED 20 OR 16 TO 1300 EVEN THOUGH THE WATCH AND CLOCK MAKER REPORTED A CONSOLIDATED PRETAX LOSS OF 337 BILLION YEN FOR THE YEAR ENDED MARCH 31 COMPARED WITH YEAREARLIER PRETAX PROFIT OF 547 MILLION YEN THE LATEST RESULTS WERE HURT BY WEAK DEMAND AND THE YEN'S STRENGTH TDK ADDED 10 TO 1450 THE MAKER OF MAGNETIC TAPES AND ELECTRONIC PARTS REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 DROPPED 31 TO 3345 BILLION YEN HIT BY A SHARP FALL IN DOMESTIC DEMAND NIPPON TELEGRAPH & TELEPHONE ROSE 13000 TO 998000 AFTER CLIMBING AS HIGH AS 999000 ON DEALERLED BUYING IN AN ATTEMPT TO PUSH THE PRICE TO 1 MILLION YEN THE DOMESTIC TELECOMMUNICATIONS GIANT'S CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 PLUNGED 28 TO 26523 BILLION YEN AS EXPECTED BECAUSE OF SLOW GROWTH IN TELEPHONE SUBSCRIBER SALES AND A DROP IN CALLRATE REVENUE AMID INTENSIFYING COMPETITION IN LONDON COURTAULDS ADVANCED 9 PENCE OR 18 TO 522 PENCE 802 ANALYSTS SAID THE SPECIALTY CHEMICAL AND INDUSTRIAL MATERIALS COMPANY IS LIKELY TO LAUNCH A RIGHTS ISSUE TODAY WHEN IT IS TO POST ITS ANNUAL RESULTS THORN EMI RALLIED 26 OR 31 TO 856 THE MUSIC AND INDUSTRIAL LIGHTING GROUP'S PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 SOARED 96 TO 2899 MILLION 4456 MILLION HELPED BY SMALLER SPECIAL CHARGES AND INTEREST COSTS OPERATING PROFIT ROSE 35 OR 16 EXCLUDING THE ADDITION DURING THE YEAR OF VIRGIN MUSIC GROUP THE 63 DIVIDEND INCREASE TO 32 PENCE A SHARE WAS IN LINE WITH ANALYSTS' EXPECTATIONS IN MILAN FERRUZZI FINANZIARIA JUMPED 23 LIRE OR 21 TO 1124 LIRE 76 US CENTS THE AGRICULTURALINDUSTRIAL AND CHEMICAL COMPANY WAS THE SUBJECT OF PERSISTENT RUMORS THAT TO REDUCE DEBT IT WOULD SELL SOME ASSETS OF OR ALL OF ITS FONDIARIA INSURANCE UNIT FONDIARIA RALLIED 1356 OR 45 TO 31571 IN STOCKHOLM ESSELTE FINISHED AT 96 KRONOR 1315 UP 1/2 THE OFFICE SUPPLY COMPANY SAID PRELIMINARY FIGURES INDICATED ITS PRETAX PROFIT FOR THIS YEAR'S FIRST FOUR MONTHS FELL 23 TO 114 MILLION KRONOR 156 MILLION ESSELTE CITED NEGATIVE MARKET DEVELOPMENTS IN EUROPE 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 9305260088 930526 THE WEST PUSHES THE WRONG KIND OF MIDEAST PEACE BY BENJAMIN NETANYAHU NOW THAT THE MIDDLE EAST PEACE TALKS HAVE RESUMED WE ARE ENTITLED TO ASK WHAT KIND OF PEACE IS ACHIEVABLE IN THIS TURBULENT REGION FUNDAMENTALLY THERE ARE TWO KINDS OF PEACE PEACE AMONG DEMOCRACIES AND PEACE AMONG DICTATORSHIPS IN A COMMUNITY OF DEMOCRACIES AS ENVISIONED BY IMMANUEL KANT THE CONSENT OF THE CITIZENS IS REQUIRED TO DECLARE WAR BUT UNDER A DESPOTISM KANT WROTE IT IS THE SIMPLEST THING IN THE WORLD TO GO TO WAR FOR THE RULER HAS IT IN HIS POWER TO ORDER THOUSANDS OF PEOPLE TO IMMOLATE THEMSELVES FOR A CAUSE WHICH DOES NOT TRULY CONCERN THEM AMONG DEMOCRACIES CONCESSIONS BY ONE SIDE ARE USUALLY INTERPRETED AS SIGNS OF GOOD FAITH BY THE OTHER ENCOURAGING COMPROMISE AND AGREEMENT TO DICTATORS CONCESSIONS SEND THE OPPOSITE MESSAGEENTICING THEM TO FURTHER AGGRESSION IN THE LATTER CASE ONLY A PEACE OF DETERRENCE IS POSSIBLE THE GREATEST TRAGEDIES IN THIS CENTURY OCCURRED WHEN THE DEMOCRACIES DID NOT DISTINGUISH THE ONE TYPE OF PEACE FROM THE OTHER AND THE GREATEST BOON TO PEACE OCCURRED WHEN THEY DID TOWARD NAZI GERMANY THEY PRACTICED APPEASEMENT AND GOT WAR TOWARD THE SOVIET UNION THE MOST POWERFUL DICTATORSHIP IN HISTORY THEY PRACTICED DETERRENCE AND WON HALF A CENTURY OF GLOBAL PEACE HERE IN A NUTSHELL IS THE PROBLEM OF ACHIEVING PEACE IN THE MIDDLE EAST EXCEPT FOR ISRAEL THERE ARE NO DEMOCRACIES IN THE REGION FURTHERMORE THE ARAB COUNTRIES SHOW ABSOLUTELY NO SIGN OF DEMOCRATIZING BUCKING THE NEARLY UNIVERSAL TREND TOWARD LIBERALIZATION EVIDENT IN THE EXSOVIET REPUBLICS IN LATIN AMERICA AND IN CERTAIN PARTS OF ASIA AND AFRICA SINCE THE PROSPECTS FOR GENUINE DEMOCRATIZATION OF THE ARAB WORLD ARE NOT IMMINENT A DURABLE PEACE IN THE MIDDLE EAST MUST BE BASED ON DETERRENCE THE WEST WHICH IS UNWILLING TO AGITATE FOR DEMOCRACY IN ARAB SOCIETIES SHOULD AT LEAST ENHANCE THE DETERRENT CAPACITY OF THE MIDDLE EAST'S SOLITARY DEMOCRACY ISRAEL YET TOO OFTEN THE WEST DOES THE VERY OPPOSITE IT PRESSURES ISRAEL TO MAKE SWEEPING CONCESSIONS CALLED RISKS FOR PEACE WHILE UNREMITTINGLY SEEKING TO APPEASE ITS DESPOT NEIGHBORS THE WEST'S CURRENT DARLINGS ARE SYRIA'S HAFEZ ASSAD AND THE PALESTINE LIBERATION ORGANIZATION'S YASSER ARAFAT THESE VETERAN MASTERS OF INTERNATIONAL TERRORISM HAVE REPLACED THE PREVIOUS MODERATE SADDAM HUSSEIN WHO WAS COURTED BY THE WEST WITH ARMS AND ECONOMIC AID UNTIL HE DEVOURED KUWAIT IT IS NOW SAID THAT IF ISRAEL WOULD SURRENDER THE GOLAN HEIGHTS TO ASSAD AND THE WEST BANK TO THE PLO IT COULD PURCHASE PEACE THIS ASSUMPTION IS GROUNDLESS THE 1979 PEACE TREATY WITH EGYPT INCLUDED A BUILTIN DETERRENT THE 120MILE STRATEGIC DEPTH OF THE DEMILITARIZED SINAI DESERT AND DETERRENCE ON THE EASTERN FRONT FACING IRAQ SYRIA AND JORDAN HAS BEEN SUPPLIED BY THE STRATEGIC HEIGHT OF THE GOLAN RIDGE AND THE MOUNTAINS OF THE WEST BANK WHAT HAS DISCOURAGED AN EASTERNFRONT WAR IN THE PAST TWO DECADES HAS BEEN ISRAEL'S CONTROL OF THIS STRATEGIC TERRAIN IT CONSTITUTES A PROTECTIVE WALL THAT SHIELDS ISRAEL'S CITIES AND AIRFIELDS FROM GROUND ATTACK FAR FROM BEING AN OBSTACLE TO PEACE ISRAEL'S CONTROL OF THIS HIGH GROUND HAS BEEN A FORMIDABLE OBSTACLE TO WAR CEDING THE DEFENSIVE WALL OF THE GOLAN WOULD PERCH THE SYRIAN ARMY OVER ISRAEL'S NORTHERN CITIES WHILE A FUNDAMENTALIST PALESTINIAN STATE ON THE HEIGHTS OF THE WEST BANK WOULD MEAN A NEW IRAQ OR IRAN A MERE 10 MILES FROM TEL AVIV AND TWO MILES FROM THE GOVERNMENT BUILDINGS IN JERUSALEM SUCH A DISMANTLING OF ISRAEL'S MOST VITAL DEFENSES WOULD AT ONCE REVERSE THE SLOW BUT STEADY PROGRESS MADE IN RECENT YEARS TOWARD STABILITY AND PEACE THE ARGUMENT THAT SUCH LAND DEFENSES ARE UNNECESSARY IN AN AGE OF MISSILES IS DEMONSTRABLY WRONG AS THE GULF WAR DEMONSTRATED MISSILES ALONE CANNOT CONQUER TERRITORY AND DECIDE THE OUTCOME OF A WAR SIMILARLY THE CLAIM THAT LAND BARRIERS WOULD BECOME OBSOLETE ONCE ISRAEL'S ENEMIES ACQUIRED NUCLEAR WEAPONS IS BASED ON FALSE PREMISES ALTHOUGH AN ARAB NUCLEAR THREAT MIGHT BE NEUTRALIZED BY ISRAEL'S ADOPTION OF SIMILAR CAPABILITIES SUCH WEAPONS IN THE HANDS OF IRAQ OR IRAN WOULD IMMENSELY BOLSTER THE CONFIDENCE OF THE ARAB STATES TO CHALLENGE ISRAEL ON THE CONVENTIONAL BATTLEFIELD THIS WOULD REQUIRE ISRAEL TO STRENGTHEN ITS GROUND DEFENSES EVEN MORE MUCH AS NATO HAD TO EXPAND ITS CONVENTIONAL FORCES TREMENDOUSLY ONCE THE SOVIET UNION ACQUIRED A NUCLEAR CAPABILITY IF ANYTHING ISRAEL'S LAND BARRIERS BECOME MORE NOT LESS IMPORTANT IN A NUCLEAR AGE AN ARABISRAELI PEACE MUST THEREFORE ENABLE ISRAEL TO MAINTAIN ITS CRUCIAL GEOGRAPHICAL DEFENSES WHILE ADDRESSING THE QUESTION OF THE PALESTINIAN ARABS LIVING ON THE HIGH GROUND OF THE WEST BANK A PROPER RESOLUTION WOULD ALLOW THESE PALESTINIANS TO LIVE WITH MINIMAL INTERFERENCE WHILE STILL GUARANTEEING ISRAEL'S SECURITY AGAINST THREATS FROM THE EAST THIS WOULD BE A FAR CRY FROM THE ENDLESSLY PROMOTED SOLUTION THAT ISRAEL ABANDON CONTROL OF THE GOLAN AND THE WEST BANK THAT SOME ISRAELIS ENDORSE SUCH A SCHEME DOES NOT MAKE IT RIGHT ANY MORE THAN BRITISH POLITICIANS' BACKING OF THE APPEASEMENT OF HITLER IN THE 1930S MADE THAT RIGHT TO THOSE WHO ESPOUSE A POLICY OF WHOLESALE WITHDRAWAL I SUGGEST THAT THEY AT LEAST WAIT FOR THE APPEARANCE OF A SYRIAN LECH WALESA OR A PALESTINIAN ANDREI SAKHAROV IN THE MEANTIME THEY SHOULD LOOK AGAIN AT THE DIFFERENCES BETWEEN THE PEACE OF DEMOCRACIES AND THE PEACE OF DETERRENCE AND CONSIDER WHICH IS APPLICABLE TO THE MIDDLE EAST MR NETANYAHU IS THE NEWLY ELECTED LEADER OF ISRAEL'S LIKUD PARTY SOME OF THIS MATERIAL IS COVERED IN HIS NEW BOOK A PLACE AMONG THE NATIONS BANTAM BOOKS 9305260086 930526 LAW LEGAL BEAT EEOC PROBES POSSIBLE AGE BIAS IN LAW FIRMS' JUNIORLEVEL HIRING BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION IS INVESTIGATING POSSIBLE AGE DISCRIMINATION IN THE WAY NEW YORK LAW FIRMS HIRE JUNIORLEVEL ATTORNEYS THE INQUIRY CHALLENGES ONE OF THE FIXTURES OF THE LEGAL PROFESSION NATIONALLY THE SYSTEM OF HIRING A CLASS OF YOUNG ASSOCIATES WHO MOVE UP THE RANKS FOR SIX TO NINE YEARS IN HOPES OF MAKING PARTNER AND LAWYERS WARN THAT THE CHALLENGE COULD DRASTICALLY ALTER THAT STRUCTURE TYPICALLY FIRMS RECRUIT DIRECTLY FROM LAW SCHOOL GRADUATING CLASSES TO STOCK THE FIRSTYEAR ASSOCIATE RANKS THEY THEN FILL VACANCIES OR ADD LAWYERS THROUGH WANT ADS THAT OFTEN STIPULATE THAT APPLICANTS SHOULD HAVE NO MORE THAN A STATED NUMBER OF YEARS OF EXPERIENCE IN THE LAW FIRMS' VIEW THE SYSTEM ENSURES A GROUP OF YOUNG TRAINABLE AND DEDICATED WORKERS BUT WHILE SUCH CAPS ON YEARS OF EXPERIENCE ARE INTENDED TO PRESERVE THE SENIORITYBASED LOGIC OF THE ASSOCIATE CLASSES THE EEOC SAYS THE PROCESS MAY DISQUALIFY LAWYERS OVER THE AGE OF 40 WHO ARE PROTECTED BY FEDERAL AGEDISCRIMINATION LAWS THE AGENCY'S MOVE COMES AT A TIME WHEN RECORD NUMBERS OF ATTORNEYS ARE FINDING THEMSELVES ON THE STREET LOOKING FOR WORK ACCORDING TO LAW FIRM CONSULTANTS AS A RESULT FIRMS ARE HAVING TO COPE WITH A GLUT OF JOB SEEKERS WHOM THEY CONSIDER OVERQUALIFIED FOR POSITIONS THAT IN THE 1980S ONLY RECENT GRADUATES WOULD HAVE TAKEN WE'RE CONCERNED THAT OLDER PEOPLE ARE BEING ILLEGALLY KEPT OUT OF ASSOCIATELEVEL JOBS SAID JAMES LEE REGIONAL ATTORNEY FOR THE EEOC'S NEW YORK OFFICE AGE STEREOTYPES STILL SEEM TO BE SOME OF THE STRONGEST STEREOTYPES THAT EXIST IN THE WORKPLACE THE INVESTIGATION FIRST REPORTED IN THE NEW YORK LAW JOURNAL WAS INITIATED AFTER EEOC STAFF ATTORNEYS BECAME CONCERNED ABOUT THE ADS CALLING FOR PEOPLE FROM PARTICULAR LAWSCHOOL GRADUATING CLASSES OR WITH LESS THAN A CERTAIN NUMBER OF YEARS OF EXPERIENCE THE EEOC HAS ASKED APPROXIMATELY 10 LEGALRECRUITING FIRMS WHICH TYPICALLY PLACE THE ADS TO TURN OVER INFORMATION ABOUT THEIR ADVERTISING AND THE REQUESTS THEY RECEIVE FROM LAW FIRMS LOOKING FOR JOB CANDIDATES THE INQUIRY IS IN THE PRELIMINARY STAGE AND NO DECISION HAS BEEN MADE ON WHETHER TO FILE A LAWSUIT ALTHOUGH THE EEOC'S INITIAL FOCUS IS ON THE LEGALRECRUITING FIRMS THE HEART OF THE AGENCY'S CONCERN IS THE HIRING SYSTEM AT THE LAW FIRMS THE EEOC'S MR LEE SAID WE'RE IN THE PROCESS OF ASSESSING THE SYSTEM ITSELF TO DETERMINE WHETHER OLDER APPLICANTS ARE DISCRIMINATED AGAINST HE SAID TO SOME ATTORNEYS THE MOVE IS A LONGOVERDUE RESPONSE TO AN INGRAINED BIAS AGAINST OLDER LAWYERS THEY ARE BARKING UP THE RIGHT TREE SAYS LEONARD FLAMM A NEW YORK ATTORNEY WHO REPRESENTS AGEDISCRIMINATION PLAINTIFFS AFTER YOU REACH A CERTAIN AGE YOU AREN'T CONSIDERED LAWFIRM HIRABLE IT'S SO UNIVERSALLY KNOWN THAT NO ONE WOULD EVER DOUBT IT MR FLAMM SAID HE KNOWS OF ATTORNEYS WHO WERE VICTIMS OF AGE DISCRIMINATION BUT HE SAID HE COULD NEVER GET AN ASSOCIATE TO BRING A SUIT BECAUSE IT WOULD MAKE IT EVEN MORE DIFFICULT TO GET HIRED AT ANOTHER LAW FIRM LAW FIRMS AND RECRUITING AGENCIES DEFEND THE SYSTEM THEY SAY IT IS A MATTER OF FINDING PEOPLE WHO FIT A FIRM'S PARTICULAR NEEDS RATHER THAN A CASE OF BEING UNWILLING TO ACCEPT OLDER APPLICANTS AGE IS SIMPLY NOT A FACTOR SAID CHARLES SCHERER MANAGING PARTNER OF NEW YORK LAW FIRM HUGHES HUBBARD & REED IT'S JUST A FACT OF LIFE THAT LAW SCHOOL GRADUATES ARE OF A PARTICULAR AGE LAWYERS AT SOME FIRMS HOWEVER SAY THAT HIRING OLDER MORE EXPERIENCED ASSOCIATES WOULD HURT MORALE AMONG YOUNG ASSOCIATES BY INCREASING THE COMPETITION FOR PARTNER SLOTS SOME ALSO MAINTAIN THAT MORE EXPERIENCED LAWYERS WON'T BE INTERESTED IN JUNIORLEVEL JOBS BECAUSE THEY ARE OVERQUALIFIED AN ARGUMENT THAT COURTS HAVE REJECTED AS A EUPHEMISM FOR TOO OLD JEAN MH FERGUS PRESIDENT OF FERGUS LEGAL SEARCH & CONSULTING INC A NEW YORK HEADHUNTING COMPANY SAID I DON'T THINK THE INTENT IS TO KEEP OUT OLDER PEOPLE BUT MS FERGUS SAID THE STRUCTURE OF LAW FIRMS AND THE WAY THEY TRAIN ASSOCIATES MAKES IT DIFFICULT FOR OLDER LAWYERS TO FIT IN HARRIS D COGAN AN ATTORNEY AT TENZER GREENBLATT FALLON & KAPLAN WHO REPRESENTS ONE OF THE RECRUITING FIRMS CONTACTED BY THE EEOC SAID IT IS ENTIRELY APPROPRIATE FOR LEGAL RECRUITERS AND LAW FIRMS TO SEEK SPECIFIC YEARS OF EXPERIENCE IN THEIR HIRING THE STRUCTURE OF A LAW FIRM AND THE NEED TO PROPERLY TRAIN ASSOCIATES IS JUSTIFICATION FOR SEEKING PARTICULAR LEVELS OF EXPERIENCE HE DECLINED TO IDENTIFY THE RECRUITING FIRM HE IS REPRESENTING WHILE LAW FIRMS SAY THEY DON'T DISCRIMINATE ON THE BASIS OF AGE THEY CONCEDE THAT CERTAIN CHARACTERISTICS ASSOCIATED WITH AGE CAN BE A FACTOR I CAN'T THINK OF AGE EVER HAVING BEEN AN ISSUE SAID WILLIAM EVARTS WHO RECENTLY RETIRED AS CHAIRMAN OF NEW YORK LAW FIRM WINTHROP STIMSON PUTNAM & ROBERTS BUT HE ADDED YOU SOMETIMES WONDER IF PEOPLE CAN STAND THE PHYSICAL STRAIN JUST AS WITH A YOUNG DOCTOR JANE W STEIN THE HIRING PARTNER AT WINTHROP STIMSON SAID THE FIRM CURRENTLY HAS A SUMMER ASSOCIATE WHO IS ABOUT 40 AND THE FIRM PREVIOUSLY HAD A 50YEAROLD FIRSTYEAR ASSOCIATE BUT SUCH HIRINGS ARE UNUSUAL MS STEIN SAID YOU NEED TO CONSIDER HOW SUCH A PERSON IS GOING TO FIT INTO YOUR STRUCTURE SHE SAID EACH FIRM HAS A PARTICULAR STYLE IT WOULDN'T BE EASY FOR AN OLDER ATTORNEY TO COME IN AND PICK UP THE FIRM'S STYLE SHE ADDED UNFORTUNATELY AGE COINCIDES WITH SOME OTHER CHARACTERISTICS ENERGY IS AN IMPORTANT ELEMENT I'M 46 AND I WOULDN'T HIRE MYSELF NOW AS A FIRSTYEAR ASSOCIATE AN EXECUTIVE AT A NEW YORK RECRUITING FIRM SAID SOME LAW FIRMS PRESS FOR CANDIDATES FROM PARTICULAR CLASS YEARS JUST THE KIND OF REQUIREMENT THAT RAISED RED FLAGS AT THE EEOC THE EXECUTIVE SAID A RECENT LETTER FROM A LAW FIRM WARNED THAT IF YOU WANT TO CONTINUE DOING BUSINESS WITH US THE RECRUITER HAD TO PASS ON RESUMES OF CLIENTS ONLY FROM THE CLASS YEARS SPECIFIED BY THE LAW FIRM THE FAULT RESIDES IN THE SYSTEM AT THE LAW FIRMS SAID THE EXECUTIVE WHO ASKED NOT TO BE IDENTIFIED CONSIDERING THE RECESSION'S IMPACT ON THE LEGAL PROFESSION AND THE INCREASE IN OUTOFWORK LAWYERS SOME SAY THAT CHANGING THE ASSOCIATE SYSTEM TO BETTER ACCOMMODATE OLDER LAWYERS MAKES SENSE OLDER LAWYERS MAY BE MORE COMFORTABLE WITH LOWERLEVEL JOBS THAN FIRMS EXPECT SAID JOEL HENNING A SENIOR VICE PRESIDENT AT LEGALCONSULTING FIRM HILDEBRANDT INC SOMERVILLE NJ HE ADDED THAT MANY CORPORATE CLIENTS MAYBE PREFER SLIGHTLY OLDER ATTORNEYS ANYWAY CLAIMS OF SEXUAL ABUSE IN CHILDCUSTODY CASES MUCH IN THE NEWS LATELY ARE FALSE AT LEAST HALF THE TIME ACCORDING TO THE EXPERIENCE OF A MAJORITY OF DIVORCE LAWYERS WHO WERE POLLED RECENTLY ON THE SUBJECT FIFTYNINE MATRIMONIAL SPECIALISTS PARTICIPATED IN THE SURVEY CONDUCTED AT THE SPRING MEETING OF THE AMERICAN BAR ASSOCIATION'S SECTION OF FAMILY LAW IN SAN DIEGO FORTYTHREE PERCENT OF THOSE WHO HAD HANDLED CASES INVOLVING CHILD SEXABUSE ALLEGATIONS SAID SUCH ALLEGATIONS WERE FALSE HALF THE TIME 25 SAID THEY WERE FALSE MOST OF THE TIME AND 32 SAID THEY WERE NOT OFTEN FALSE THE CHARGES ALMOST ALWAYS WERE MADE BY THE MOTHER THE LAWYERS SAID ON ANOTHER ISSUE ALMOST TWOTHIRDS OF RESPONDENTS SAID THEY BELIEVE A CHILD SHOULD BE ABLE TO BRING A LAWSUIT AGAINST HIS OR HER PARENTS IN CASES INVOLVING ABUSE OR NEGLECT DO PRENUPTIAL AGREEMENTS INCREASE THE LIKELIHOOD OF DIVORCE SEVENTYTWO PERCENT OF THE LAWYERS ALMOST ALL OF WHOM HAD DRAFTED SUCH AGREEMENTS SAID NO WHO'S NEWS GERALDINE FERRARO STEPPED BACK INTO THE LEGAL WORLD BECOMING MANAGING PARTNER AT THE NEW YORK OFFICE OF KECK MAHIN & CATE MS FERRARO THE FORMER CANDIDATE FOR VICE PRESIDENT AND MOST RECENTLY FOR THE US SENATE WILL SPECIALIZE IN INTERNATIONAL AND ADMINISTRATIVE LAW FOR THE 350LAWYER FIRM WHICH IS BASED IN CHICAGO A FORMER US REPRESENTATIVE MS FERRARO HEADED THE DISTRICT ATTORNEY'S OFFICE IN QUEENS NY IN THE MID70S INSIDERTRADING RING STEVEN D GLAUBERMAN A FORMER ASSOCIATE AT NEW YORK LAW FIRM SKADDEN ARPS SLATE MEAGHER & FLOM WAS SENTENCED TO SIX MONTHS AT A HALFWAY HOUSE IN MANHATTAN AND FIVE YEARS PROBATION FOR PARTICIPATING IN AN INSIDERTRADING RING THE 1980S SCHEME INVOLVED TRADING ON INFORMATION ABOUT CORPORATE TAKEOVERS HANDLED BY SKADDEN JUDGE MIRIAM GOLDMAN CEDARBAUM IN FEDERAL COURT IN MANHATTAN ALSO ORDERED MR GLAUBERMAN TO PERFORM 200 HOURS OF COMMUNITY SERVICE FOR EACH YEAR OF PROBATION 9305260085 930526 WHO'S NEWS IBM'S FJELDSTAD TO LEAVE POSTS IN MULTIMEDIA BY LAURIE HAYS AND JAMES C HYATT STAFF REPORTERS OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP SAID LUCIE J FJELDSTAD VICE PRESIDENT AND GENERAL MANAGER FOR MULTIMEDIA WILL RETIRE MAY 31 BUT STRESSED THAT THE COMPANY REMAINS COMMITTED TO ITS MULTIMEDIA PROJECTS A SPOKESMAN FOR THE COMPANY BASED IN ARMONK NY SAID IT IS AN OPPORTUNE TIME FOR HER TO LEAVE BECAUSE A NUMBER OF THE PROJECTS SHE WORKED ON HAVE ALL BEEN SENT OFF TO THE APPROPRIATE PLACES INSIDE THE COMPANY AND ARE HUMMING AWAY ON THEIR OWN MRS FJELDSTAD'S IMMEDIATE PLANS ARE TO RELAX HE SAID THE COMPANY SAID NO DECISION HAS BEEN MADE YET ABOUT NAMING A SUCCESSOR FOR MRS FJELDSTAD MRS FJELDSTAD 49 YEARS OLD IS CREDITED WITH PUSHING IBM INTO MULTIMEDIA A NEW AREA THAT USES COMPUTERS TO HANDLE TEXT SOUND AND VIDEO SHE HAS MOVED SEVERAL LARGE PROJECTS THROUGH THEIR DEVELOPMENT STAGE AND OUT INTO THE PRODUCT LINE ONE OF THEM FIREWORKS PARTNERS IS A VENTURE THAT COMMERCIALIZES MULTIMEDIA APPLICATIONS WITH OTHER COMPANIES AND ENTREPRENEURS FIREWORKS PARTNERS RECENTLY ANNOUNCED PLANS WITH VIDEORENTAL CHAIN BLOCKBUSTER ENTERTAINMENT CORP TO MARKET RETAIL SYSTEMS THAT COULD MAKE AND DISPENSE AUDIO COMPACT DISKS ON DEMAND ANOTHER BUSINESS SHE SHEPHERDED DIGITAL DOMAIN IS A 50 IBMOWNED VENTURE WITH HOLLYWOOD FILM WRITER/DIRECTOR/PRODUCER JAMES CAMERON AND TWO OTHER HOLLYWOOD EXECUTIVES THE PRODUCTION STUDIO STAFFED INITIALLY BY 15 TO 20 EMPLOYEES WILL PROVIDE SUPPORT SERVICES FOR FILMMAKERS WHO WANT TO USE STATEOFTHEART EQUIPMENT TO PUT NEW BELLS AND WHISTLES IN THEIR MOVIES ONE OF THE HIGHEST RANKING FEMALE EXECUTIVES AT THE COMPANY MRS FJELDSTAD JOINED IBM IN 1968 AS AN ASSOCIATE SYSTEMS PLANNER DURING HER CAREER SHE HAS HELD POSITIONS IN PLANNING PROGRAMMING DEVELOPMENT MARKETING FINANCE AND EXECUTIVE MANAGEMENT SHE WAS ELECTED A CORPORATE OFFICER IN JUNE 1988 AND WAS NAMED PRESIDENT OF THE MULTIMEDIA AND EDUCATION DIVISION IN JUNE 1990 SHE WAS NAMED TO HER CURRENT POSITION IN JANUARY 1992 AN IBM SPOKESMAN SAID MRS FJELDSTAD'S DECISION TO LEAVE IBM SHOULDN'T IN ANY WAY BE VIEWED AS A COMPANY PULLBACK FROM ITS MULTIMEDIA ACTIVITIES MULTIMEDIA IS BEYOND ONE PERSON AT IBM HE SAID 9305260084 930526 CHILEAN ARMS MERCHANT AND TELEDYNE MAY FACE CHARGES ON PAST EXPORTS TO IRAQ BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN WHAT WOULD BE ITS FIRST PUBLIC MOVE AGAINST PAST WESTERN MILITARY EXPORTS TO IRAQ THE CLINTON ADMINISTRATION HAS PREPARED CRIMINAL CHARGES AGAINST CHILEAN ARMS MERCHANT CARLOS CARDOEN AND DEFENSE CONTRACTOR TELEDYNE INC THE CHARGES WHICH ALLEGE EXPORTCONTROL VIOLATIONS RELATE TO EXPORTS OF ZIRCONIUM A RESTRICTED METAL USED IN BOMBMAKING ACCORDING TO SEVERAL PEOPLE CLOSE TO THE CASE THE TELEDYNE WAH CHANG SUBSIDIARY BASED IN OREGON WHICH PRODUCES THE RARE METAL SOLD IT TO MR CARDOEN'S COMPANIES IN CHILE WHICH USED IT TO MAKE CLUSTER BOMBS FOR IRAQ BETWEEN 1984 AND 1988 ACCORDING TO THOSE PEOPLE THE ALLEGED VIOLATIONS INCLUDE DELIBERATE MISREPRESENTATIONS TO US GOVERNMENT OFFICIALS TO OBTAIN EXPORT LICENSES A FEDERAL GRAND JURY IN MIAMI MAY BE ASKED TO VOTE ON THE CHARGES AS EARLY AS TODAY AND THE US ATTORNEY FOR MIAMI COULD ANNOUNCE THEM THIS WEEK CIVIL CHARGES ARE ALREADY PENDING AGAINST MR CARDOEN LAWYERS FOR MR CARDOEN TELEDYNE AND OTHER INDIVIDUALS WHO MAY BE CHARGED IN THE CASE DECLINED TO COMMENT YESTERDAY BUT IN RECENT MONTHS MR CARDOEN HAS ARGUED FORCEFULLY THAT THE US GOVERNMENT KNEW AND APPROVED OF HIS SALES OF TENS OF THOUSANDS OF BOMBS TO IRAQ HE HAS ADMITTED HOWEVER THAT HIS STAFF INCORRECTLY FILLED OUT SOME US EXPORTLICENSING FORMS BY FAILING TO MENTION THAT THE ZIRCONIUM WOULD BE USED FOR MILITARY PURPOSES LOS ANGELESBASED TELEDYNE HAS MAINTAINED THAT IT WASN'T AWARE OF THE MILITARY USE THAT MR CARDOEN MADE OF ITS ZIRCONIUM AND THAT IT OBTAINED THE REQUIRED EXPORT PERMITS FROM THE COMMERCE DEPARTMENT ZIRCONIUM HAS MANY INDUSTRIAL USES THOUGH MR CARDOEN USED ITS HEATENHANCING PROPERTIES TO MAKE ARMORPIERCING CLUSTER BOMBS CLUSTER BOMBS EXPLODE ABOVE THEIR TARGET SPREADING SMALLER BOMBS AND SHRAPNEL OVER A WIDE AREA IRAQ AND ITS DICTATOR SADDAM HUSSEIN HAVE PROVEN A NIGHTMARE FOR US POLICY MAKERS IN RECENT YEARS THE BUSH ADMINISTRATION INITIALLY AIDED IRAQ THEN HAD TO GO TO WAR TO DRIVE IRAQI TROOPS FROM NEIGHBORING KUWAIT IN SOME CASES US TROOPS FOUND THEMSELVES FACING WESTERN MILITARY GOODS AND MATERIEL THIS EMBARRASSING TURNABOUT IN USIRAQ POLICY PROVOKED INQUIRIES INTO WHAT AMERICAN COMPANIES AND INDIVIDUALS HAD DONE TO HELP BUILD UP IRAQ'S EXTENSIVE WAR MACHINE AND WHETHER IT WAS ALL LEGAL IT HAS BECOME INCREASINGLY APPARENT THAT THE US AND ITS EUROPEAN ALLIES ESPECIALLY BRITAIN FRANCE AND ITALY GAVE EXTENSIVE THOUGH SOMETIMES COVERT SUPPORT TO IRAQ DURING THE 1980S PARTICULARLY BECAUSE THE COUNTRY WAS SEEN AS A CRITICAL BASTION AGAINST RADICAL AND FUNDAMENTALIST IRAN IT ALSO HAS BEEN WIDELY ALLEGED THAT WESTERN GOVERNMENTS CONNIVED IN THE BREAKING OF THEIR OWN LAWS AND REGULATIONS IN THEIR EAGERNESS TO HELP IRAQ THE ATLANTA BRANCH OF ITALY'S BANCA NAZIONALE DEL LAVORO FOR EXAMPLE LENT BILLIONS OF DOLLARS TO IRAQ IN THE LATE 1980S MUCH OF IT GUARANTEED BY THE US GOVERNMENT IN LAST FALL'S PRESIDENTIAL CAMPAIGN BILL CLINTON AND AL GORE USED THE BNL ISSUE TO LAMBASTE THE BUSH ADMINISTRATION FOR INCOMPETENCE AND TO SUGGEST A COVERUP BY REPUBLICAN OFFICIALS TO HIDE THEIR EMBARRASSMENT AT HAVING AIDED IRAQ MR CARDOEN A MINING ENGINEER WHO STUDIED IN UTAH MADE NO SECRET OF HIS ARMSMAKING BUSINESS IT IS ALSO CLEAR THAT THE US GOVERNMENT HAD EXTENSIVE KNOWLEDGE OF MR CARDOEN'S ACTIVITIES A DECEMBER 1984 CABLE TO THE SECRETARY OF STATE FROM THE US EMBASSY IN SANTIAGO CHILE TALKED OF CARDOEN'S EXISTING PRESUMABLY LUCRATIVE MARKET FOR CLUSTER BOMBS IN IRAQ AN APRIL 1987 TELEX FROM THE US EMBASSY SAID CARDOEN IS BEST KNOWN AS THE PRODUCER OF CLUSTER BOMBS APPROXIMATELY 60 OF TOTAL PRODUCTION IS EXPORTED TO IRAQ MR CARDOEN ALSO HAS A HISTORY OF EXPORTCONTROL VIOLATION IN 1983 HE WAS ARRESTED AND CHARGED WITH EXPORTCONTROL VIOLATIONS RELATED TO THE EXPORT OF NIGHTVISION GOGGLES MR CARDOEN PLEADED GUILTY TO A MISDEMEANOR AND AGREED TO PAY A MAXIMUM FINE OF 100000 IN RETURN FOR DISMISSAL OF THE COMPLAINT IN A JULY 1984 LETTER MARRILYN MORRISON CHIEF OF THE US CUSTOMS SERVICE PENALTIES DIVISION SAID MR CARDOEN WAS INVOLVED IN A SCHEME TO ILLEGALLY EXPORT MUNITIONS CONTROL LIST ITEMS FROM THE US TO CHILE AND THEN TO DIVERT THESE ITEMS TO LIBYA AND CUBA NEVERTHELESS MR CARDOEN RETAINED HIS EXPORT PRIVILEGES EVEN THOUGH THEY USUALLY WOULD HAVE BEEN SUSPENDED LAST YEAR US AUTHORITIES BROUGHT CIVIL CHARGES AGAINST MR CARDOEN AND MOVED TO CONFISCATE HIS US PROPERTIES WHICH ARE VALUED AT MILLIONS OF DOLLARS THOSE CIVIL CHARGES ARE BEING HEARD IN FEDERAL COURT IN MIAMI MR CARDOEN AND HIS ADVISERS HAVE SEVERAL TIMES MAINTAINED THAT HE IS BEING USED AS A SCAPEGOAT BY THE US GOVERNMENT TO HELP TO COVER UP THE SHORTCOMINGS OF ITS OWN IRAQ POLICY IN FEBRUARY THE US ATTORNEY IN MIAMI HAD BEEN ON THE POINT OF BRINGING CRIMINAL CHARGES AGAINST MR CARDOEN BUT PULLED BACK AT THE LAST MOMENT APPARENTLY MOVED BY DEFENSE ATTORNEYS' ARGUMENTS THAT THE US GOVERNMENT KNEW OF MR CARDOEN'S ACTIVITIES RECENTLY RELEASED DOCUMENTS HAVE SHOWN THAT THE CENTRAL INTELLIGENCE AGENCY HAD EXTENSIVE KNOWLEDGE OF HIS ARMS SALES TO IRAQ AFTER FURTHER REVIEW THE PROSECUTORS APPEAR TO BELIEVE THAT THE US OFFICIALS WHO GRANTED THE EXPORT LICENSES DIDN'T HAVE THAT KNOWLEDGE THAT THERE WAS NO OFFICIAL US POLICY TO AID IRAQ BY BENDING REGULATIONS AND THAT THERE WERE DELIBERATE MISREPRESENTATIONS TO US OFFICIALS BY MR CARDOEN AND TELEDYNE CRIMINAL CHARGES IN THE WAH CHANG CASE WOULD DEEPEN THE LEGAL THICKET SURROUNDING TELEDYNE THE PENTAGON LAST MONTH BANNED THE TELEDYNE RELAYS UNIT FROM GOVERNMENT CONTRACTING FOR ONE YEAR AFTER THE COMPANY PLEADED GUILTY TO FALSIFYING TESTS ON ELECTRONIC SWITCHES AND PAID A 175 MILLION FINE THE US ALSO HAS INTERVENED IN CIVIL LAWSUITS INVOLVING THE TELEDYNE SYSTEMS AND TELEDYNE CONTROLS UNITS AND IN ADDITION TO ACKNOWLEDGING A FEDERAL INVESTIGATION INVOLVING TELEDYNE WAH CHANG THE COMPANY HAS SAID THAT SEVERAL OTHER UNITS ARE OBJECTS OF INVESTIGATIONS INCLUDING TELEYNE NEOSHO AND TELEDYNE RYAN AERONAUTICAL 9305260083 930526 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION DATAWARE TECHNOLOGIES AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC AND VOLPE WELTY & CO MS CARRIERS INC AN OFFERING OF 25 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC AND MORGAN KEEGAN & CO SWIFT ENERGY CO AN OFFERING OF 25 MILLION IN CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 VIA SOUTHCOAST CAPITAL CORP BARCLAYS DE ZOETE WEDD LIMITED AND NESBITT THOMSON INC 9305260081 930526 CHRISTOPHER AIDE ADD TO BAD DAY FOR CLINTON WASHINGTON AMID CHARGES THE CLINTON ADMINISTRATION HAS ABDICATED LEADERSHIP ON BOSNIA AND CONFUSING STATEMENTS BY A TOP AIDE SECRETARY OF STATE WARREN CHRISTOPHER INSISTED THE US WORLD ROLE IS UNDIMINISHED IN A TELEPHONE INTERVIEW MR CHRISTOPHER SAID WHERE OUR VITAL INTERESTS ARE THREATENED ANY PLACE AROUND THE WORLD WE WILL TAKE A LEADERSHIP ROLE MR CHRISTOPHER WAS RESPONDING TO COMMENTS MADE EARLIER IN THE DAY BY ONE OF HIS TOP AIDES SUGGESTING THAT GIVEN ECONOMIC CONSTRAINTS AT HOME AND CHANGES IN THE POSTCOLD WAR WORLD THERE WOULD BE NEW RULES OF ENGAGEMENT FOR THE UNITED STATES THE OFFICIAL WHO WAS SPEAKING TO A GROUP OF REPORTERS ON THE CONDITION THAT HE NOT BE IDENTIFIED APPEARED TO BE CHARTING A NEW MORE PASSIVE COURSE FOR AMERICAN FOREIGN POLICY SAYING THAT THE US WOULD MAINLY ACT IN CONCERT WITH OTHER NATIONS AND ONLY RARELY STRIKE OUT ON ITS OWN OR IMPOSE A STRATEGY ON ITS ALLIES REJECTING THE NOTION THAT THE END OF THE COLD WAR HAD DIMINISHED AMERICAN RESPONSIBILITY FOR WORLD LEADERSHIP MR CHRISTOPHER SAID IN THE INTERVIEW THAT THE POSTCOLD WAR PERIOD IS NO DIFFERENT FROM THE COLD WAR PERIOD IN TERMS OF US RESPONSIBILITY FOR LEADERSHIP THE CONTRADICTORY COMMENTS BY MR CHRISTOPHER AND ONE OF HIS TOP AIDES CONTRIBUTED TO AN OVERALL IMPRESSION OF DRIFT BY THE CLINTON ADMINISTRATION 9305260080 930526 BUSINESS BRIEF NOVELL INC SECONDPERIOD NET ROSE 31 ON DEMAND FOR NETWARE 40 NOVELL INC SAID INITIAL DEMAND FOR ITS NETWARE 40 COMPUTERNETWORKING SOFTWARE ALONG WITH STRONG DEMAND FOR PRODUCT UPGRADES AND ROYALTIES FROM NETWARE SOFTWARE DROVE SECONDQUARTER EARNINGS UP 31 THE PROVO UTAH COMPUTER NETWORKING COMPANY SAID SECONDQUARTER PROFIT WAS 805 MILLION OR 26 CENTS A SHARE COMPARED WITH 613 MILLION OR 20 CENTS A SHARE REVENUE ROSE 25 TO 2807 MILLION THE EARNINGS WERE IN LINE WITH ANALYSTS ESTIMATES IN OVERTHECOUNTER TRADING YESTERDAY NOVELL ROSE 50 CENTS TO 3225 NOVELL BEGAN SHIPPING ITS NETWARE 40 SOFTWARE IN MARCH THE SOFTWARE WHICH PERMITS COMPUTERS TO TALK TO EACH OTHER IS EXPECTED TO BE HEAVILY CHALLENGED BY MICROSOFT CORP'S WINDOWS NT SOFTWARE WHICH ALSO AIMS AT LARGE COMMERCIAL NETWORKS OF COMPUTER USERS AND IS EXPECTED TO BEGIN SELLING BY THE END OF JULY NOVELL SAID SECONDQUARTER EARNINGS WERE ALSO HELPED BY SALES OF UPGRADES OF ITS 311 NETWORKING SOFTWARE SALES OF PRODUCT UPGRADES AND LICENSING OF NETWARE SOFTWARE HAS GROWN TO MORE THAN 20 OF REVENUE THE COMPANY SAID 9305260079 930526 MARKETING & MEDIA UK FILM CENSORS RESTRICT VIDEO GAME CITE VIOLENCE LONDON REUTER BRITISH FILM CENSORS HAVE CLASSIFIED A VIDEO GAME FOR THE FIRST TIME RESTRICTING IT TO PEOPLE 15 YEARS AND OLDER BECAUSE OF ITS VIOLENCE THEY SAID YESTERDAY THE BRITISH BOARD OF FILM CLASSIFICATION GAVE THE RATING TO NIGHT TRAP A VIDEO GAME BY SEGA ENTERPRISES INC OF JAPAN WHICH COMBINES LIVE ACTION AND COMPUTER GRAPHICS ON MONDAY SEGA OF AMERICA INC SAID IT WOULD INCLUDE MOVIELIKE RATINGS WITH EACH NEW GAME BEGINNING THIS MONTH SEGA SAID IT WILL SET THREE CLASSIFICATIONS FOR ITS GAMES GA FOR GENERAL AUDIENCES MA13 FOR TEENAGERS WITH SUGGESTED PARENTAL GUIDANCE AND MA17 FOR VIDEO GAMES APPROPRIATE FOR ADULTS ONLY NIGHT TRAP RECEIVED THE RESTRICTED CLASSIFICATIONS FROM THE BRITISH BOARD FOR TWO OFFENDING SCENES ONE OF A MAN HANGING UPSIDE DOWN WITH BLOOD DRAINING FROM HIS NECK AND ANOTHER OF A WOMAN WITH A HOOK AROUND HER NECK BEING DRAGGED AWAY SEGA OF AMERICA SAID IT RATED NIGHT TRAP MA13 FOR TEENAGERS WITH SUGGESTED PARENTAL GUIDANCE 9305260078 930526 FLORIO AIDE SALEMA RESIGNS IN WAKE OF TURNPIKE PROBE BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL A TOP AIDE TO NEW JERSEY GOV JIM FLORIO HAS RESIGNED IN THE WAKE OF A FEDERAL PROBE INTO A 29 BILLION NEW JERSEY TURNPIKE AUTHORITY BOND ISSUE THE RESIGNATION OF JOSEPH SALEMA GOVERNOR FLORIO'S CHIEF OF STAFF WAS FIRST DISCLOSED IN YESTERDAY'S EDITIONS OF THE NEWARK STAR LEDGER MR SALEMA OWNS A HALFINTEREST IN ARMACON SECURITIES A SMALL CLEMENTON NJ BOND DEALER AS PREVIOUSLY REPORTED MERRILL LYNCH & CO'S DISCLOSURE THIS MONTH THAT IT UNCOVERED APPARENT IRREGULARITIES IN TRADING ACCOUNTS WITH ARMACON TOUCHED OFF AN INVESTIGATION BY THE US ATTORNEY'S OFFICE IN MANHATTAN AND THE SECURITIES AND EXCHANGE COMMISSION MERRILL HAS PLACED THREE TOP EMPLOYEES IN ITS MUNICIPAL BOND DEPARTMENT ON ADMINISTRATIVE LEAVE AND IS COOPERATING WITH FEDERAL INVESTIGATORS A STATEMENT ISSUED BY GOV FLORIO'S OFFICE YESTERDAY SAID MR SALEMA IS STEPPING DOWN BECAUSE HE BELIEVES THAT IF HE CONTINUED AS CHIEF OF STAFF IT WOULD ALLOW POLITICAL OPPONENTS IN THE UPCOMING ELECTION TO USE HIS POSITION AS A WAY TO TAKE THE FOCUS OFF THE MAIN ISSUES THAT AFFECT THE PEOPLE OF NEW JERSEY MR SALEMA COULDN'T BE REACHED FOR COMMENT PEOPLE WITH KNOWLEDGE OF THE FEDERAL INVESTIGATION SAY IT IS FOCUSING ON WHETHER MERRILL AND OTHER UNDERWRITERS MADE ILLEGAL PAYMENTS TO ARMACON TO WIN THE TURNPIKE UNDERWRITING BUSINESS MR SALEMA IS UNDERSTOOD TO HAVE RECEIVED A SUBPOENA IN CONNECTION WITH THE PROBE MEANWHILE THE NEW JERSEY TURNPIKE AUTHORITY ISSUED A LENGTHY REPORT DEFENDING THE BOND ISSUE THAT IS AT THE CENTER OF THE INVESTIGATION THE TURNPIKE AUTHORITY SAID THE 1991 FINANCING WAS CARRIED OUT WITH CAREFUL REGARD FOR THE PUBLIC INTEREST THE AUTHORITY SAID THAT IT SELECTED LEAD UNDERWRITERS BASED ON RECOMMENDATIONS MADE TO IT BY LAZARD FRERES & CO ITS FINANCIAL ADVISER 9305260076 930526 CFTC VOTES TO TOUGHEN TRADEREPORTING RULES SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE COMMODITY FUTURES TRADING COMMISSION VOTED UNANIMOUSLY TO APPROVE TOUGHER TRADEREPORTING REQUIREMENTS FOR FUTURES TRADERS THE NEW REPORTING RULE ONE OF SEVERAL STEMMING FROM THE 1989 FEDERAL PROBE OF FRAUD AT THE CHICAGO FUTURES EXCHANGES WILL APPLY TO ORDERS THAT TRADERS SHOUT TO OTHER TRADERS IN THE FUTURES PIT OR TRANSMIT THROUGH HAND SIGNALS SUCH ORAL ORDERS WHICH ARE GENERALLY FOR A MEMBER'S OWN ACCOUNT ARE NOT RECORDED IN WRITING BEFORE THE TRADE IS EXECUTED EXCHANGE MEMBERS ARE REQUIRED TO RECORD THE TIME SUCH ORDERS ARE EXECUTED AFTER THE FACT HOWEVER CFTC OFFICIALS HAVE FOUND THAT MANY DO NOT COMPLY WITH THAT RULE RAISING THE POSSIBILITY OF FRAUD ANDREA CORCORAN HEAD OF THE CFTC'S TRADING AND MARKETS DIVISION SAID THE NEW REPORTING RULE WILL LIMIT THE OPPORTUNITIES FOR FABRICATION OF ORDERS AND OTHER TYPES OF FRAUD THE CFTC ALSO APPROVED A RULE THAT WILL REQUIRE MEMBERS OF BROKER'S GROUPS TO REGISTER WITH COMMODITIES EXCHANGES THE RULE WAS DRAFTED IN RESPONSE TO CONCERNS THAT RELATIONSHIPS AMONG MEMBERS OF THE GROUPS KNOWN AS BROKER ASSOCIATIONS MAY INCREASE THE POTENTIAL FOR TRADING ABUSES 9305260075 930526 EPA FINDS POSSIBLE RISE IN TREATED TOXIC WASTE WASHINGTON THE QUANTITY OF TOXIC CHEMICALS RELEASED BY INDUSTRY IS DECLINING BUT THE MUCH LARGER AMOUNT THAT IS TREATED RECYCLED OR CONVERTED TO ENERGY MAY BE INCREASING ACCORDING TO A SURVEY BY THE ENVIRONMENTAL PROTECTION AGENCY THE EPA'S ANNUAL TOXIC RELEASE INVENTORY SHOWED THAT DIRECT TOXIC RELEASES INTO THE AIR WATER AND GROUND DECLINED 9 BETWEEN 1990 AND 1991 TO 34 BILLION POUNDS CONTINUING A PATTERN OF SEVERAL YEARS BUT EPA ADMINISTRATOR CAROL BROWNER SAID SHE WAS CONCERNED BY DATA PROJECTING THAT THE AMOUNT OF WASTE THAT ISN'T RELEASED BUT RATHER IS TREATED RECYCLED OR CONVERTED TO ENERGY INCREASED BY 200 MILLION POUNDS BETWEEN 1991 AND 1993 THIS UNRELEASED TOXIC WASTE TOTALED MORE THAN 33 BILLION POUNDS IN 1991 OR FAR MORE THAN THE AMOUNT DIRECTLY RELEASED TO THE ENVIRONMENT THIS WAS THE FIRST TIME THE EPA'S TOXIC RELEASE INVENTORY TRACKED UNRELEASED TOXIC WASTE MS BROWNER HAS OFTEN STATED HER PREFERENCE FOR STREAMLINING PRODUCTION PROCESSES AS OPPOSED TO TREATING WASTE WHEN IT COMES OUT OF A SMOKESTACK OR PIPE 9305260074 930526 USJAPAN TALKS DELAYED SWITCHED TO WASHINGTON WASHINGTON TALKS BETWEEN THE US AND JAPAN TO SET A NEW TRADE AGENDA HAVE BEEN POSTPONED ABOUT 10 DAYS TO AROUND JUNE 7 AND MOVED TO WASHINGTON US OFFICIALS SAID THE US HAD PLANNED TO PRESENT ITS PROPOSALS FOR THE TALKS TOMORROW IN TOKYO BUT THE ADMINISTRATION WASN'T ABLE TO FINISH WORK AND BRIEF LAWMAKERS BY THEN AND JAPAN HAD TROUBLE ARRANGING A TRADE DELEGATION THE TWO NATIONS DECIDED TO MOVE THE SITE OF THE TALKS TO WASHINGTON US OFFICIALS SAID SO THE DISCUSSIONS WON'T CONFLICT WITH THE WEDDING OF CROWN PRINCE NARUHITO JUNE 9 A SECOND ROUND OF TRADE TALKS IS EXPECTED AROUND JUNE 21 IN TOKYO US OFFICIALS SAID THEY HAVE TWIN GOALS GETTING JAPAN TO CUT ITS CURRENT ACCOUNT SURPLUS BY MORE THAN HALF AND INCREASE ITS IMPORTS OF MANUFACTURED GOODS BY ONETHIRD UNDER THE PLAN FOR JAPAN THE US APPORTIONS INDUSTRIES AND TRADE PRACTICES INTO FIVE BASIC CATEGORIES AND WANTS TO NEGOTIATE BETTER ACCESS FOR US COMPANIES IN EACH OF THOSE CATEGORIES THE TALKS FLOW FROM A MEETING LAST MONTH BETWEEN PRESIDENT CLINTON AND JAPANESE PRIME MINISTER KIICHI MIYAZAWA IN WHICH THEY AGREED TO SET UP A NEGOTIATING AGENDA BY JULY 7 WHEN THE MAJOR INDUSTRIALIZED COUNTRIES CONVENE IN TOKYO FOR AN ECONOMIC SUMMIT 9305260073 930526 KIMBERLYCLARK RESPONDS TO P&G DIAPER PRICE CUTS DALLAS KIMBERLYCLARK CORP IS SLASHING DISPOSABLE DIAPER PRICES TO RETAILERS 7 JUNE 1 IN RESPONSE TO PRICE CUTS BY RIVAL DIAPER MAKER PROCTER & GAMBLE CO P&G REDUCED PAMPERS PRICES 5 AND LUVS PRICES 16 EFFECTIVE MAY 17 AND ELIMINATED LUVS PROMOTIONAL SPENDING AND SOME LUVS VARIETIES KIMBERLYCLARK SAID THE JUNE 1 PRICE CUTS WILL MAKE THE PERDIAPER PRICE OF ITS HUGGIES BRAND EQUAL TO PAMPERS P&G AND KIMBERLYCLARK HAVE LOWERED PRICES THREE TIMES IN THE PAST 12 MONTHS LAST WEEK SMALLER CLOSELY HELD DRYPERS CORP RESPONDING TO P&G'S PRICE CUTS BEGAN OFFERING COUPONS OF AT LEAST 75 CENTS OFF RETAIL PRICE IN ITS THREE REGIONAL BRANDS DALLASBASED KIMBERLYCLARK SAID ITS PRICE CUTS WILL REDUCE DIAPER REVENUES BY ABOUT 50 MILLION IN 1993 HOWEVER THE COMPANY SAID SOME OF THE IMPACT ON EARNINGS WILL BE OFFSET BY COST SAVINGS KIMBERLYCLARK HAD SALES OF 71 BILLION IN 1992 CHAIRMAN WAYNE R SANDERS SAID HE EXPECTS DIAPER PROFITABILITY TO RETURN TO MORE TRADITIONAL LEVELS IN 1994 9305260072 930526 BUSINESS BRIEF UNION PACIFIC CORP FIRM AND SECOND RAILROAD GET CONTRACT FROM UTILITY UNION PACIFIC RAILROAD AND CHICAGO & NORTH WESTERN TRANSPORTATION CO SAID THEY REACHED A LONGTERM AGREEMENT TO MOVE LOWSULFUR COAL TO AN INDIANA ELECTRIC POWER PLANT THE CONTRACT WITH OHIO VALLEY ELECTRIC CORP WHICH IS OWNED BY A CONSORTIUM OF 10 ELECTRIC UTILITY COMPANIES JUSTIFIES OUR CONFIDENCE THAT LOWSULFUR COAL FROM THE WEST IS A VIABLE OPTION FOR SOME UTILITIES TO COMPLY WITH THE CLEAN AIR ACT SAID DICK DAVIDSON CHAIRMAN AND CHIEF EXECUTIVE OF UNION PACIFIC RAILROAD SINCE 1991 UNION PACIFIC HAS SPENT 100 MILLION TO UPGRADE A RAIL ROUTE ACROSS NEBRASKA IN ANTICIPATION OF ADDITIONAL LOWSULFUR COAL HAULING BUSINESS FROM EASTERN AND SOUTHERN UTILITIES UNION PACIFIC IS A UNIT OF BETHLEHEM PABASED UNION PACIFIC CORP CHICAGO & NORTH WESTERN IS A SUBSIDIARY OF CHICAGO & NORTH WESTERN HOLDINGS CORP CHICAGO UNDER THE CONTRACT THE TWO RAILROADS WILL TRANSPORT UP TO THREE MILLION TONS OF LOWSULFUR COAL A YEAR FROM WYOMING'S POWDER RIVER BASIN TO TERMINALS IN SOUTHERN ILLINOIS 9305260071 930526 INTERNATIONAL GERMAN UNION CHIEF QUITS ON INSIDER TRADING REPORT FRANKFURT FRANZ STEINKUEHLER THE EMBATTLED CHAIRMAN OF GERMANY'S POWERFUL IG METALL TRADE UNION RESIGNED YESTERDAY AMID REPORTS THAT HE TRADED STOCKS ON INSIDE INFORMATION GAINED AS DEPUTY CHAIRMAN OF DAIMLERBENZ AG'S SUPERVISORY BOARD MR STEINKUEHLER HAD OFFERED TO RESIGN ON MONDAY THE UNION BOSS ALSO IS EXPECTED TO LEAVE THE DAIMLERBENZ BOARD AS WELL AS THE SUPERVISORY BOARDS OF VOLKSWAGEN AG AND STEELMAKER THYSSEN AG GERMAN LAW PROVIDES FOR LABOR REPRESENTATION ON COMPANY BOARDS LAST WEEK MR STEINKUEHLER ADMITTED BUYING ONE MILLION MARKS 611400 OF SHARES IN MERCEDES AG HOLDING ONLY DAYS BEFORE THE HOLDING COMPANY'S SHARES WERE CONVERTED INTO HIGHERPRICED DAIMLERBENZ STOCK ON A 1FOR1 BASIS HE DENIED HAVING PRIOR KNOWLEDGE OF THE DEAL BUT ADMITTED THAT DEALING IN COMPANIES ASSOCIATED WITH DAIMLERBENZ WAS A MISTAKE HE SAID HE HAS TRANSFERRED HIS EARNINGS FROM THE TRANSACTIONS TO AN EASTERN GERMAN WORKERS FUND INSIDER TRADING ISN'T ILLEGAL IN GERMANY BUT IT'S FROWNED UPON VOLUNTARY GUIDELINES ARE CONTROLLED BY AN INDEPENDENT COMMISSION AT THE FRANKFURT STOCK EXCHANGE AT LEAST IN THEORY THE RESIGNATION OF THE COMBATIVE AND SUCCESSFUL LABOR NEGOTIATOR COMES JUST AFTER A COMPROMISE ENDED STRIKES BY STEELWORKERS AND ENGINEERING WORKERS IN EASTERN GERMANY KLAUS ZWICKEL IG METALL'S DEPUTY CHAIRMAN WILL HEAD THE 33 MILLION MEMBER UNION UNTIL A NEW CHAIRMAN IS PICKED 9305260070 930526 BUSINESS BRIEF MARRIOTT CORP ANNUAL MEETING IS DELAYED WITH DATE TO BE SET IN JULY MARRIOTT CORP WHICH HAS PROPOSED A SPECIAL DIVIDEND SPLITTING THE COMPANY INTO A HOTEL MANAGEMENT ARM AND A MORE SPECULATIVE REALESTATE COMPANY RESCHEDULED ITS JUNE 22 ANNUAL MEETING TO A DATE TO BE DETERMINED IN JULY A SPOKESMAN FOR THE WASHINGTON DC COMPANY SAID THE DATE OF THE MEETING IS SUBJECT TO CLEARANCE BY THE SECURITIES AND EXCHANGE COMMISSION OF THE COMPLICATED PROXY MATERIALS THE COMPANY HAS FILED WITH THE SEC THEY'RE CLEARLY TAKING A GOOD LOOK AT IT HE SAID THE DIVIDEND IS CONDITIONED UPON AMONG OTHER THINGS FURTHER APPROVAL BY MARRIOTT'S BOARD RATIFICATION BY A MAJORITY OF SHAREHOLDERS AND A FAVORABLE RULING FROM THE INTERNAL REVENUE SERVICE THAT THE SPLITUP IN THE FORM OF A SPECIAL DIVIDEND WILL BE TAXFREE 9305260069 930526 CHARITY GIFTS ROSE BY 64 IN 1992 DESPITE JOB CUTS BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A YEAR MARKED BY LOST JOBS AND LOST CONFIDENCE IN SOME INSTITUTIONS 1992 CHARITABLE CONTRIBUTIONS ROSE 64 THE SHARPEST GAIN IN THREE YEARS GIVING TO NONPROFITS REACHED 12431 BILLION LAST YEAR UP FROM 1991'S REVISED 11682 BILLION ACCORDING TO THE AMERICAN ASSOCIATION OF FUNDRAISING COUNSEL INC'S AAFRC TRUST FOR PHILANTHROPY GIFTS FROM INDIVIDUALS WHICH ACCOUNT FOR 82 OF THE TOTAL ROSE 683 WHILE BEQUESTS ROSE 48 CORPORATE GIVING WHICH MAKES UP JUST UNDER 5 WAS FLAT FOUNDATION GIVING GREW THE MOST RISING NEARLY 8 TO 833 BILLION SAID THE NEW REPORT AFTER ACCOUNTING FOR INFLATION TOTAL GIVING ROSE 23 CORPORATE GIFTS FELL 38 AND FOUNDATION CONTRIBUTIONS GAINED 38 LAST YEAR WAS A REASONABLY CREDITABLE YEAR FOR PHILANTHROPY SAID MARTIN GRENZEBACH TRUST CHAIRMAN BUT HE QUESTIONED WHETHER WE'RE DOING AS WELL AS WE COULD AND SHOULD IN THE 1990S ON ONE HAND HE NOTED THE NUMBER OF POTENTIAL GIVERS IS RISING WITH THE AGING OF BABY BOOMERS INTO THE PRIME GIVING YEARS AND THERE HAS BEEN A TENFOLD INCREASE IN THE NUMBER OF MILLIONAIRES IN THE PAST DECADE ON THE OTHER HAND THE NUMBER OF FUNDRAISING PROGRAMS HAVE MULTIPLIED WITH MORE CHARITABLE AND NONPROFIT GROUPS' SOLICITING CONTRIBUTIONS BY USING MORE SOPHISTICATED METHODS LAST YEAR'S JOB LOSSES DUE TO CORPORATE DOWNSIZINGS AS WELL AS THE SPENDING SCANDAL AT UNITED WAY OF AMERICA HEADQUARTERS MAY CONTINUE TO CLOUD 1993'S GIVING PICTURE TRUST OFFICIALS SAID WHILE UNITED WAY'S TROUBLES DIDN'T DIRECTLY AFFECT GIVING TO OTHER CAUSES TRUST OFFICIALS SAID IT CONTINUES TO BE A NEGATIVE INFLUENCE ON UNITED WAY VOLUNTEERS SEPARATELY UNITED WAY OF AMERICA SAID THAT AS OF THE END OF APRIL WITH ABOUT HALF OF THE 1900 LOCAL UNITED WAYS TALLIED FOR THE 199293 CAMPAIGN THE ORGANIZATION HAS RECEIVED 241 BILLION DOWN ABOUT 4 FROM THE COMPARABLE CITIES A YEAR EARLIER BUT IT NOTED THAT THE PERCENTAGE IS LIKELY TO FALL FURTHER WHEN THE BIG LOS ANGELES AND NEW YORKNEW JERSEYCONNECTICUT CAMPAIGNS REPORT FINAL RESULTS NOW IN THE MIDST OF RESTRUCTURING INTERNATIONAL BUSINESS MACHINES CORP THE NATION'S BIGGEST CORPORATE DONOR GAVE ABOUT 120 MILLION LAST YEAR TO A RANGE OF CAUSES DOWN ABOUT 11 FROM THE YEAR BEFORE THE REPORT SAID RELIGION CONTINUED TO BE THE MAIN IMPETUS FOR GIVING IN 1992 ABOUT 5671 BILLION OR SOME 46 OF TOTAL GIFTS WENT TO RELIGIOUS GROUPS EDUCATION RECEIVED 1402 BILLION OR 11 HURRICANES RIOTS AND OTHER CRISES LAST YEAR HELPED SPARK A 42 INCREASE IN HUMANSERVICES GIFTS TO 1157 BILLION BUT AT THE SAME TIME DEMAND FOR THOSE SERVICES ALSO ROSE THE REPORT NOTED GIVING TO ARTS CULTURE AND THE HUMANITIES GREW 59 TO 932 BILLION GIFTS TO ENVIRONMENTAL AND WILDLIFE CAUSES SAW STRONG GROWTH OF 65 TO 312 BILLION GIVING TO INTERNATIONAL CAUSES DECLINED 23 TO 171 BILLION POSSIBLY BECAUSE OF THE FOCUS ON DOMESTIC ISSUES DURING THE PRESIDENTIAL ELECTION TRUST OFFICIALS SAID 9305260068 930526 CORRECTIONS & AMPLIFICATIONS RICHARD K HOWE WAS ELECTED A DIRECTOR OF CHIC BY HIS INC IN YESTERDAY'S WHO'S NEWS COLUMN THE APPAREL COMPANY WAS INCORRECTLY IDENTIFIED AS HIS INC 9305260067 930526 TECHNOLOGY US COMPUTERSPENDING EXPECTED TO RISE JUST 3 WASHINGTON THE CLINTON ADMINISTRATION WHICH TRUMPETS ITS EFFORTS TO CREATE INFORMATION SUPERHIGHWAYS IS PLANNING TO BOOST SPENDING ON COMPUTERS AND TELECOMMUNICATIONS ONLY 3 AND EVEN THAT MAY BE OVERSTATING THE INCREASE A SURVEY BY FEDERAL SOURCES INC A MARKET RESEARCH COMPANY IN MCLEAN VA ESTIMATED THAT FEDERAL SPENDING ON COMPUTERS AND TELECOMMUNICATIONS WILL RISE TO 248 BILLION IN THE YEAR ENDING SEPT 30 1994 A 3 INCREASE FROM THE 24 BILLION BUDGETED FOR THE CURRENT YEAR DURING THE BUSH ADMINISTRATION SUCH SPENDING ROSE ABOUT 8 ANNUALLY ROBERT DORNAN A VICE PRESIDENT AT FEDERAL SOURCES SAID THAT INCREASE WHICH IS BASED ON BUDGET PROJECTIONS MAY BE OVERSTATED THAT'S BECAUSE AGENCIES ARE ASKING THE GENERAL SERVICES ADMINISTRATION WHICH GENERALLY APPROVES CONTRACTS VALUED AT 25 MILLION OR MORE TO APPROVE 20 FEWER CONTRACTS THAN IN FISCAL 1992 MR DORNAN SAID THAT COULD TRANSLATE INTO LOWER SPENDING ON COMPUTERS AND TELECOMMUNICATIONS IN FISCAL 1994 MR DORNAN BLAMED THE SLOWER PACE OF CONTRACT APPROVALS ON THE SNAIL'S PACE WITH WHICH THE CLINTON ADMINISTRATION IS APPOINTING TECHNOLOGY OFFICIALS 9305260066 930526 WHO'S NEWS WABAN'S PRESIDENT CEO QUITS CITING FINANCIAL RESULTS BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL JOHN F LEVY RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WABAN INC CITING DISAPPOINTING FINANCIAL RESULTS AT THE WAREHOUSE CLUB CONCERN ALTHOUGH WABAN HAS ACHIEVED CONSIDERABLE PROGRESS OVER THE PAST FEW YEARS MR LEVY SAID IN A STATEMENT RELEASED BY THE NATICK MASS COMPANY THE RESULTS HAVE FALLEN SHORT OF THE BOARD'S GOALS ACCORDINGLY I HAVE CHOSEN TO STEP DOWN HE ADDED SUCCEEDING THE 46YEAROLD MR LEVY IS HERBERT J ZARKIN 54 WHO HAS BEEN PRESIDENT OF THE COMPANY'S BJ'S WHOLESALE CLUB DIVISION IN ADDITION TO BJ'S WHICH SELLS FOOD AND GENERAL MERCHANDISE WABAN OPERATES HOMEBASE A HOMEIMPROVEMENT PRODUCTS RETAIL CHAIN BOARD MEMBERS COULDN'T BE REACHED FOR COMMENT A SPOKESWOMAN SAID MR LEVY'S DEPARTURE WAS BY MUTUAL AGREEMENT MR LEVY'S RESIGNATION THOUGH A SURPRISE TO MANY ANALYSTS WAS WELCOMED ON WALL STREET IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE WABAN SHARES CLOSED AT 1450 A SHARE UP 875 CENTS MR ZARKIN IS A VERY SHARP HANDSON KIND OF GUY SAID CHRISTOPHER VROOM AN ANALYST FOR ALEX BROWN & SONS THE LEADERSHIP CHANGE COMES AS THE ONCE ROBUST WHOLESALE CLUB INDUSTRY WHICH SELLS EVERYTHING FROM COMPUTERS TO BREAKFAST CEREAL IN BULK TO DUESPAYING CLUB MEMBERS IS STRUGGLING WITH FLABBY SALES AND STIFF COMPETITION FROM OTHER WAREHOUSE CLUBS AS WELL AS MASS DISCOUNTERS KMART CORP AGREED MONDAY TO SELL 14 STORES IN ITS AILING PACE MEMBERSHIP WAREHOUSE DIVISION TO RIVAL SAM'S CLUB A UNIT OF WALMART STORES INC WHILE SALES AT WABAN HAVE INCREASED MUCH OF THE GAINS HAVE COME FROM NEW STORE OPENINGS SALES AT STORES AT LEAST A YEAR OLD HOWEVER HAVE DECLINED IN RECENT MONTHS FOR THE FISCAL FIRST QUARTER ENDED MAY 1 WABAN HAD NET INCOME OF 53 MILLION OR 16 CENTS A SHARE AFTER AN ACCOUNTING ADJUSTMENT GAIN OF 905000 THAT COMPARES WITH NET OF 62 MILLION OR 19 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 13 TO 8342 MILLION FROM 736 MILLION PARTLY DUE TO A WEAK ECONOMY AND NARROW PROFIT MARGINS THROUGHOUT THE INDUSTRY SOME ANALYSTS SAY THAT A QUICK TURNAROUND IN THE BUSINESS WILL BE DIFFICULT TO PULL OFF AMONG WAREHOUSE CLUBS WABAN HAS THE LOWEST PROFIT MARGINS AT LESS THAN 1 SAID ALLAN RONESS AN ANALYST FOR FAHNESTOCK & CO IN NEW YORK WE DON'T THINK ZARKIN IS GOING TO BE AN INSTANT SAVIOR OTHERS DISAGREE NOTING THAT UNDER MR ZARKIN'S TENURE AT BJ'S WHOLESALE CLUB OPERATING PROFIT AT THE DIVISION HAS STEADILY CLIMBED TO 34 MILLION LAST YEAR FROM 11 MILLION IN 1990 MR ZARKIN IS A NATURAL FOR THE JOB HE'S THE MAN OF THE HOUR SAID OTTO GROTE ANALYST FOR DERBY SECURITIES ALLAN P SHERMAN SENIOR VICE PRESIDENT OF BJ'S WHOLESALE CLUB AND GENERAL MERCHANDISE MANAGER OF THE COMPANY'S NONFOODS DIVISION WILL SUCCEED MR ZARKIN AS PRESIDENT OF THE DIVISION AND EXECUTIVE VICE PRESIDENT OF WABAN 9305260065 930526 ICAHN LOSES BID FOR EII IN BLOW TO INVESTMENT STYLE BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FINANCIER CARL ICAHN'S EFFORTS TO WREST CONTROL OF EII HOLDINGS INC IN FEDERAL BANKRUPCTY COURT FAILED AT 240 YESTERDAY MORNING WHEN BANKRUPTCY JUDGE CORNELIUS BLACKSHEAR RULED IN FAVOR OF THE COMPANY'S REORGANIZATION PLAN IN SPURNING MR ICAHN JUDGE BLACKSHEAR ALSO BROUGHT DOWN HIS GAVEL AGAINST A STYLE OF BANKRUPTCY INVESTING THAT HAS BEEN FADING FROM FAVOR IN THE PAST TWO YEARS INCREASINGLY THE TABLEPOUNDING AND DELAY TACTICS FAVORED BY JUNIOR DEBTHOLDERS SUCH AS MR ICAHN HAVE BEEN FAILING TO MAKE HEADWAY IN BANKRUPTCY PROCEEDINGS INSTEAD HOLDERS OF THESE LOWONTHECREDITLADDER DEBT SECURITIES OFTEN HAVE BEEN OUTMANEUVERED BY HOLDERS OF MORESECURE SENIOR DEBT WHO WANT TO STICK WITH THE COMPANY AND HOLD ON TO ITS NEW STOCK RATHER THAN BEING CASHED OUT AS IN THE PAST NOWHERE IS THE CHANGING BANKRUPTCY CLIMATE CLEARER THAN IN THE CASE OF EII THE LATEST BATTLEGROUND BETWEEN MR ICAHN AND APOLLO ADVISERS THE GROUP HEADED BY FORMER DREXEL BURNHAM LAMBERT MERGER EXPERT LEON BLACK MR ICAHN'S 31 OF THE JUNIOR DEBT BOUGHT TWO YEARS AGO FOR LESS THAN ONETHIRD OF FACE VALUE INITIALLY PROVED SUFFICIENT TO BLOCK THE REORGANIZATION PLAN PROFFERED BY THE EII CREDITORS COMMITTEE DOMINATED BY APOLLO BUT BECAUSE MR BLACK'S APOLLO HELD 24 OF THE SENIOR DEBT IN ADDITION TO 27 OF THE JUNIOR DEBT APOLLO WAS ABLE NOT ONLY TO SHAPE THE RESTRUCTURING BUT TO FORCE MR ICAHN TO ACCEPT ITS TERMS IN COURT WITH A CRAMDOWN IN A CRAMDOWN A REORGANIZATION PLAN CAN BE CONFIRMED BY THE COURT OVER THE OBJECTIONS OF DISSENTING JUNIOR DEBTHOLDERS IF THE PLAN MEETS TESTS OF FAIRNESS DESCRIBED IN THE FEDERAL BANKRUPTCY CODE YESTERDAY THE BANKRUPTCY COURT CONFIRMED THE REORGANIZATION PLAN THAT WILL GIVE SENIOR CREDITORS 100 CENTS ON THE DOLLAR AND JUNIOR CREDITORS A COMBINATION OF DEBT AND STOCK VALUED AT ABOUT 74 CENTS ON THE DOLLAR FRIDAY THE COMPANY PROPOSED MODIFICATIONS TO THE PLAN THAT WOULD ALLOW ALL SENIOR CREDITORS TO ELECT TO RECEIVE STOCK INSTEAD OF DEBT FOR A PORTION OF THEIR RECOVERY SINCE ALL CREDITORS ARE EXPECTED TO WANT NEW EII STOCK MR BLACK'S APOLLO IS LIKELY TO BE THE LARGEST SHAREHOLDER WITH 30 OF THE NEW STOCK WITH MR ICAHN RIGHT BEHIND WITH 20 THOUGH MR ICAHN WILL MORE THAN DOUBLE HIS MONEY ON THE INVESTMENT HE WON'T REACH HIS GOAL OF WRESTING THE COMPANY FROM APOLLO THIS ISN'T THE FIRST TIME MR BLACK HAS USED HIS SENIOR DEBT POSITION TO BEST MR ICAHN IN THE PAST YEAR MR BLACK HAS ALSO GAINED THE UPPER HAND IN GILLETT HOLDINGS INC AND INTERCO BUT THE EII CRAMDOWN ALSO SHOWS HOW MUCH THE NATURE OF BANKRUPTCY REORGANIZATIONS HAS CHANGED SINCE MR ICAHN BEGAN SPECULATING IN JUNIOR DEBT SECURITIES TWO YEARS AGO LEON BLACK UNDERSTANDS THE TIME VALUE OF MONEY SAYS BRUCE A KARSH WHO MANAGES TRUST CO OF THE WEST'S HUGE PORTFOLIO OF JUNK BONDS AND HAS INVESTED IN A NUMBER OF RESTRUCTURINGS INVOLVING MESSRS BLACK AND ICAHN WHEN HE MAKES A LOT OF MONEY IN A QUICK PERIOD OF TIME HE'S WILLING TO LET SOMEONE ELSE MAKE A LITTLE TOO TO GET THE DEAL DONE BY CONTRAST INVESTORS WHO HAVE BEEN CREDITORS ALONGSIDE MR ICAHN SAY HE DRAGS OUT THE PROCESS OFTEN WITH GAMEPLAYING BUT AT TIMES WITH CARELESSNESS AND LACK OF PREPARATION LIKE MANY OTHER BOTTOMFISHERS MR ICAHN WAS ATTRACTED TO THE POSSIBILITY OF SIGNIFICANT RECOVERIES SPECULATING THAT THE PRICE OF JUNIOR DEBT HAD FALLEN TOO FAR TWO YEARS AGO WHEN MR ICAHN BEGAN BUYING JUNIOR DEBT OF MANY TROUBLED COMPANIES HAD FALLEN FROM 100 CENTS ON THE DOLLAR TO AS LITTLE AS FIVE CENTS IN THE CASE OF INTERCO OR TO ABOUT A DIME FOR LEASEWAY TRANSPORTATION CORP ANOTHER COMPANY IN WHICH MR ICAHN INVESTED SENIOR DEBT USUALLY SECURED BY ASSETS OF THE COMPANY TENDED TO DROP LESS SHARPLY IN PRICE BUT ONCE HE BOUGHT HIS STAKE MR ICAHN OFTEN REFUSED TO GET INVOLVED IN THE BANKRUPTCY PROCESS BY JOINING THE CREDITORS COMMITTEE OR EVEN BY AGREEING TO RESTRICT HIS TRADING IN THE SECURITIES IN THE END SAYS ONE BANKRUPTCY SPECULATOR MR ICAHN'S INVESTMENT RETURNS SEEM TO OWE MORE TO LUCK AND TIMING THAN TO ANY CLOSE ATTENTION TO DETAILS OF BANKRUPTCY PROCEEDINGS BOTH MR ICAHN AND MR BLACK DECLINED TO DISCUSS THE EII DEAL YESTERDAY CRITICS SAY MR ICAHN IS SO FOND OF NEGOTIATING THAT HE SOMETIMES DRAGS OUT THE PROCESS TOO LONG AT THE EXPENSE OF OTHER CREDITORS LEASEWAY IS A CASE IN POINT MR ICAHN ACCUMULATED 80 MILLION FACE AMOUNT OF THE 1325 DEBENTURES IN 1991 AT A COST OF ROUGHLY 17 CENTS ON THE DOLLAR A MOVE THAT ENCOURAGED OTHER SPECULATORS TO BUY IN MR ICAHN DRAGGED OUT THE REORGANIZATION BY REFUSING TO ATTEND CREDITORS MEETINGS AND BY BLOCKING A RESTRUCTURING PLAN AT ONE POINT LAST YEAR THE CREDITORS ORGANIZED A MEETING FOR MR ICAHN'S BENEFIT IN THE OFFICES OF THE COMPANY'S INVESTMENT BANKING FIRM BLACKSTONE GROUP MR ICAHN ARRIVED LATE AND WAS SO UNPREPARED ABOUT THE DETAILS OF THE REORGANIZATION PLAN ACCORDING TO A LEASEWAY CREDITOR WHO WAS PRESENT THAT THE COMMITTEE HAD TO SPEND AN HOUR BRIEFING HIM MR ICAHN FINALLY SOLD HIS STAKE TO BEAR STEARNS & CO FOR 50 MILLION EARLIER THIS YEAR ABOUT TRIPLING HIS MONEY BUT DOING LITTLE TO ADVANCE HIS STANDING AS AN ADVOCATE OF CREDITORS' RIGHTS IN CONTRAST MR BLACK'S GROUP HAS SKILLFULLY PARLAYED ITS SENIOR DEBT POSITIONS INTO DOMINANT STAKES IN THE NEW EQUITY OF REORGANIZED COMPANIES OFTEN OVER THE OBJECTIONS OF OTHER DEBTHOLDERS IN INTERCO FOR EXAMPLE MR BLACK CUT A DEAL WITH THE MOST JUNIOR LEVELS OF SUBORDINATED DEBT THAT GAVE THEM DISPROPORTIONATELY MORE THAN THEY WERE ENTITLED TO IN EXCHANGE THOSE CREDITORS VOTED TO ACCEPT THE PLAN THE PLAN GAVE MR BLACK THE RIGHT FOR A LIMITED TIME TO BUY THE NEW STOCK HELD BY OTHER SENIOR CREDITORS MOSTLY BANKS AT SLIGHTLY LESS THAN THE 750ASHARE PRICE IN THE DISCLOSURE STATEMENT SINCE THE BANKS PREFERRED DEBT TO EQUITY THEY SOLD OUT IN DROVES DOUBLING APOLLO'S POSITION TO 60 FROM ABOUT 30 OF THE STOCK INTERCO STOCK TRADES AT 13875 MR ICAHN WHO OWNED THE MOST SENIOR OF THE SUBORDINATED DEBT SECURITIES SOUGHT TO BLOCK THE PLAN BY BUYING UP AN ADDITIONAL 50 MILLION FACE VALUE OF THOSE SECURITIES AFTER THE REORGANIZATION PLAN WAS FILED BUT SOMEHOW HE OMITTED TO SECURE THE RIGHT TO VOTE THOSE BONDS AND THE INTERCO PLAN WAS CONFIRMED OVER HIS OBJECTIONS PERHAPS APOLLO'S MOST DEFT PLOY TO DATE WAS THE CRAMDOWN OF CREDITORS IN SCI TELEVISION INC'S PREPACKAGED BANKRUPTCY PROCEEDING WHICH WAS APPROVED BY THE FEDERAL BANKRUPTCY COURT IN DELAWARE THREE WEEKS AGO MUCH OF THE SENIOR BANK DEBT WAS BOUGHT BY MR BLACK'S GROUP TRUST CO OF THE WEST AND FIDELITY CAPITAL & INCOME A FUND THAT SPECULATES ON REORGANIZATIONS THE PLAN GIVES SENIOR CREDITORS 85 CENTS ON THE DOLLAR RECOVERY BUT THE NEXT LEVEL OF DEBT DOWN THE LADDER GETS ONLY FIVE CENTS ON THE DOLLAR THE FOUR LEVELS OF JUNIOR DEBT GET NOTHING TO MAKE SURE THE PLAN WOULD PASS THE SENIOR HOLDERS BOUGHT UP THE NEXT LEVEL OF DEBT BELOW WHAT THEY OWNED MR ICAHN ISN'T LIKELY TO SIT QUIETLY WITH HIS EII SHARES HE HAS ALREADY ANNOUNCED HIS INTENT TO APPEAL JUDGE BLACKSHEAR'S DECISION TO THE FEDERAL DISTRICT COURT IN MANHATTAN WHILE HIS BANKRUPTCY INVESTMENTS HAVE BEEN PROFITABLE CREDITORS SAY HIS TACTICS HAVE COST HIM CREDIBILITY WITH OTHER BANKRUPTCY SPECULATORS THE CLASHES WITH MR BLACK HAVE CAST A PALL OVER THE DECADELONG FRIENDSHIP BETWEEN THE TWO FINANCIERS WHICH STARTED WHEN MR BLACK REPRESENTED MR ICAHN IN HIS ACQUISITION OF ACF INDUSTRIES INC THE RAILCAR LEASING COMPANY THAT HAS BEEN MR ICAHN'S PRIMARY INVESTMENT VEHICLE THE TWO FAMILIES TOOK SEVERAL VACATIONS TOGETHER TO COLORADO WYOMING AND SAILING IN THE MEDITERRANEAN BUT IT'S BEEN NEARLY A YEAR SINCE MR ICAHN INVITED MR BLACK TO JOIN HIS MARATHON POKER GAMES WITH FINANCIER NELSON PELTZ AND REAL ESTATE MAGNATE EARLE MACK MR ICAHN WHO USED TO BOAST OF HAVING SPENT THANKSGIVING AT MR BLACK'S HOUSE NOW SAYS THIS YEAR I AM MAKING OTHER PLANS 9305260064 930526 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 3/8 HIGH 3 1/8 LOW 3 1/4 NEAR CLOSING BID 3 5/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 44 DAYS 310 45 TO 89 DAYS 315 90 TO 119 DAYS 317 120 TO 149 DAYS 320 150 TO 179 DAYS 323 180 TO 229 DAYS 330 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 316 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 264 TWO MONTHS 266 THREE MONTHS 282 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 303 ONE MONTH 310 THREE MONTHS 324 SIX MONTHS BANKERS ACCEPTANCES 301 30 DAYS 305 60 DAYS 309 90 DAYS 312 120 DAYS 315 150 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 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 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 736 60 DAYS 745 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 732 60 DAYS 742 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 9305260063 930526 PREMIER TO REDUCE BUSINESS WITH BAXTER TO PROTEST HOSPITAL SUPPLIER'S ETHICS' BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL A MAJOR HOSPITAL GROUP SAID IT WILL REDUCE BUSINESS WITH BAXTER INTERNATIONAL INC BY UP TO 50 MILLION OVER THE NEXT YEAR IN PROTEST OF BAXTER'S ETHICS AND BUSINESS PRACTICES PREMIER HOSPITALS ALLIANCE AN AFFILIATION OF 150 US HOSPITALS BASED IN WESTCHESTER ILL SAID SUBSTANTIVE CHANGES IN PREMIER'S EXISTING RELATIONSHIP WITH BAXTER WERE NECESSARY INCLUDING REDUCTIONS IN BUSINESS PREMIER WHICH PURCHASES ABOUT 250 MILLION A YEAR OF MEDICAL AND SURGICAL SUPPLIES FROM BAXTER PLANS TO SCRUTINIZE EACH CONTRACT WITH THE HOSPITAL SUPPLIER THAT COMES UP FOR RENEWAL OVER THE NEXT 12 MONTHS PREMIER'S ACTION LARGELY REPRESENTS A PROTEST OF BAXTER'S ACTIONS IN THE MIDDLE EAST IN MARCH BAXTER PLEADED GUILTY TO THE FEDERAL FELONY OF HAVING SUPPLIED EXTENSIVE INFORMATION TO ARAB BOYCOTT AUTHORITIES ABOUT BAXTER'S BUSINESS IN ISRAEL AMONG OTHER THINGS BAXTER SAID IT SUPPLIED BOYCOTT OFFICIALS WITH DETAILS OF ITS SALE OF AN INTRAVENOUSFLUIDS PLANT IN ISRAEL IN 1988 THE PREMIER DECISION STOPS SHORT OF SUGGESTIONS HINTED AT EARLIER THAT IT MIGHT ELIMINATE ALL BUSINESS WITH BAXTER IN ADDITION A PREMIER STATEMENT EXPRESSED OPTIMISM ABOUT A BAXTER REMEDIAL ACTION PLAN TO IMPROVE ITS CORPORATE STYLE ETHICS AND BUSINESS PRACTICES OFFICIALS AT BAXTER BASED IN DEERFIELD ILL AND PREMIER WERE VAGUE ON JUST WHAT THIS MEANS EXCEPT THAT A BAXTER STATEMENT YESTERDAY SAID A CORPORATE RESPONSIBILITY OFFICE WILL BE ESTABLISHED AND WILL ACCEPT COMPLAINTS FROM CUSTOMERS BAXTER CALLED PREMIER A VALUED CUSTOMER AND ADDED THAT ITS OBJECTIVE IS TO BUILD BUSINESS NOT TO LOSE BUSINESS AND WE INTEND TO EARN THE BUSINESS WITH PREMIER GOING FORWARD PREMIER SAID ITS HOSPITALS AGREED TO DO BUSINESS WITH BAXTER ON A CONTRACTBYCONTRACT BASIS PENDING THEIR ASSESSMENT OF BAXTER'S PROGRESS THE ARAB BOYCOTT GUILTY PLEA WASN'T THE SOLE SOURCE OF PREMIER'S DISPLEASURE PREMIER SAID THERE HAVE BEEN A SERIES OF INCIDENTS OVER THE LAST FOUR YEARS THAT UNDERMINED MEMBER HOSPITALS' CONFIDENCE IN BAXTER'S ETHICS AND BUSINESS PRACTICES ONE SUCH DISPUTE INVOLVED A CLAUSE IN THE TWO PARTIES' CONTRACT SPECIFYING PRICE DISCOUNTS TO PREMIER IF CERTAIN VOLUME MILESTONES WERE ACHIEVED PREMIER AND BAXTER HAD ARGUED OVER WHETHER THESE BENCHMARKS HAD BEEN MET BAXTER AND ITS CHAIRMAN VERNON R LOUCKS JR STILL FACE OTHER TROUBLES OVER THE GUILTY PLEA THE US GOVERNMENT IS REVIEWING WHETHER TO BAR THE COMPANY FROM ABOUT 125 MILLION IN ANNUAL MEDICAL SUPPLY CONTRACTS AND STUDENTS AT YALE UNIVERSITY ARE CALLING FOR MR LOUCKS TO RESIGN AS CHAIRMAN OF THE SCHOOL'S BOARD MOST RECENTLY A STUDENT GROUP CONDUCTED PROTESTS AT YALE COMMENCEMENT EXERCISES MR LOUCKS HAS SAID HE WON'T RESIGN AND CONTENDS THE GUILTY PLEA RESULTED FROM MERELY AN INADVERTENT VIOLATION OF FEDERAL LAW 9305260062 930526 WHAT'S NEWS WORLDWIDE THE WHITE HOUSE REMAINED MIRED IN A TRAVELOFFICE CONTROVERSY STILL STRUGGLING WITH THE TRAVELOFFICE MESS THE WHITE HOUSE REVERSED ITSELF AND REINSTATED FIVE OF THE SEVEN EMPLOYEES FIRED LAST WEEK PLACING THEM ON PAID LEAVE PENDING THE OUTCOME OF VARIOUS INVESTIGATIONS THE REVERSAL CAME AFTER NEARLY A WEEK OF ACCUSATIONS THAT THE WHITE HOUSE DISMISSED THE EMPLOYEES TO MAKE ROOM FOR ITS FRIENDS THEN PRESSED THE FBI TO JUSTIFY THE ACTION AIDES DESCRIBED CLINTON AS FURIOUS OVER STAFF STUMBLES THAT HAVE HURT HIM POLITICALLY ON THE EVE OF THE HOUSE VOTE ON HIS DEFICITREDUCTION PLAN INCONGRUOUSLY CHIEF OF STAFF MCLARTY WHO ASSUMED RESPONSIBILITY FOR THE MESS ALSO WAS NAMED TO HEAD AN INTERNAL WHITE HOUSE INVESTIGATION HE WILL BE ASSISTED BY BUDGET CHIEF PANETTA THE SECURITY COUNCIL VOTED UNANIMOUSLY TO SET UP AN 11JUDGE INTERNATIONAL COURT AT THE HAGUE TO TRY PEOPLE ACCUSED OF WAR CRIMES IN THE FORMER YUGOSLAVIA INCLUDING MURDER RAPE ETHNIC CLEANSING AND OTHER ATROCITIES IT WILL BE THE FIRST INTERNATIONAL TRIBUNAL OF ITS KIND SINCE AXIS WAR CRIMINALS WERE TRIED AFTER WORLD WAR II GUATEMALA'S LEADER SUSPENDED THE CONSTITUTION AND DISSOLVED CONGRESS APPARENTLY UNDER PRESSURE FROM THE MILITARY PRESIDENT SERRANO BESET BY PROTESTS OVER THE ECONOMY SAID HE WOULD RULE BY DECREE UNTIL A NEW CONSTITUTION IS DRAFTED THE HEADS OF CONGRESS AND THE SUPREME COURT AND THE ATTORNEY GENERAL WERE UNDER HOUSE ARREST SOUTH AFRICAN POLICE ARRESTED DOZENS OF LEADERS OF THE PAN AFRICANIST CONGRESS THE HARSHEST CRACKDOWN ON BLACK LEADERS SINCE DE KLERK TOOK POWER IN 1989 THE GROUP WHOSE ARMED WING IS ACCUSED OF ATTACKING WHITES QUICKLY PULLED OUT OF DEMOCRACY TALKS THE AFRICAN NATIONAL CONGRESS SAID PRETORIA SOUGHT TO DERAIL THE TALKS IRANIAN JETS ATTACKED REBEL BASES INSIDE IRAQ AFTER WEEKS OF BORDER CLASHES IRAQ WARNED IRAN THAT SIMILAR AGGRESSIONS LED TO THEIR 198088 WAR THE AIR STRIKE AGAINST TWO MUJAHEDEEN BASES WAS THE FIRST IRANIAN MILITARY ACTION IN OVER A YEAR AGAINST THE CAMPS WHICH ARE USED BY IRANIAN EXILES TRYING TO OUST THE TEHRAN REGIME SURGERY FOR PROSTATE CANCER ROSE NEARLY SIXFOLD IN THE US BETWEEN 1984 AND 1990 DESPITE SCANT EVIDENCE THAT SURGERY PROVIDES CLEAR BENEFITS FOR MANY MEN STUDIES SAID SEPARATIST KURDISH REBELS SHATTERED THEIR TWOMONTHOLD TRUCE IN TURKEY KILLING 33 TURKISH SOLDIERS AND TWO CIVILIANS IN A BUS AMBUSH IN A SOUTHEASTERN PROVINCE THE NATION'S INTERIOR MINISTER SAID CRIMINAL CHARGES HAVE BEEN PREPARED BY THE CLINTON ADMINISTRATION AGAINST CHILEAN ARMS MERCHANT CARLOS CARDOEN AND DEFENSE CONTRACTOR TELEDYNE ALLEGING VIOLATIONS RELATING TO ZIRCONIUM EXPORTS TO IRAQ ACCORDING TO PEOPLE CLOSE TO THE CASE THE METAL IS USED TO MAKE BOMBS A CHINESE DISSIDENT WAS BARRED FROM HOLDING A NEWS CONFERENCE AT UN HEADQUARTERS FOLLOWING AN ORDER BY SECRETARYGENERAL BOUTROSGHALI AT THE REQUEST OF THE BEIJING GOVERNMENT INSTEAD SHEN TONG A LEADER OF THE 1989 DEMOCRACY MOVEMENT MADE AN IMPROMPTU SIDEWALK PRESENTATION CRITICIZING THE UN AS WELL AS BEIJING THE US WAS CONSIDERING THE POSSIBILITY OF PUSHING FOR TOUGHER SANCTIONS AGAINST HAITI AFTER THE LATEST SETBACK TO NEGOTIATIONS ON THE RESTORATION OF DEMOCRACY THERE UN AND US ENVOYS LEFT HAITI MONDAY WITHOUT OBTAINING AN ACCORD ON AN INTERNATIONAL POLICE FORCE A KEY COMPONENT IN A PLAN FOR THE RETURN OF OUSTED PRESIDENT ARISTIDE CHINESE POLICE FIRED TEAR GAS AT PROTESTERS IN THE TIBETAN CAPITAL OF LHASA FOR A SECOND DAY HOPING TO HALT THE WORST TROUBLE IN TIBET SINCE UNREST IN 1989 LED TO OVER A YEAR OF MARTIAL LAW TIBET'S EXILED SPIRITUAL LEADER THE DALAI LAMA DEPLORED CHINA'S EXCESSIVE USE OF FORCE TURNOUT CLIMBED ABOVE 85 HALFWAY THROUGH CAMBODIA'S FIRST MULTIPARTY VOTE IN 21 YEARS A SPOKESMAN FOR UN PEACEKEEPERS SAID HUNDREDS OF PEOPLE CAST BALLOTS IN AREAS HELD BY THE KHMER ROUGE REBELS NORTH KOREA RESPONDED POSITIVELY TO A SOUTH KOREAN OFFER FOR TALKS SIGNALING THAT PYONGYANG MAY WANT TO END AN IMPASSE OVER ITS DECISION TO QUIT A NUCLEAR NONPROLIFERATION PACT 9305260061 930526 INTERNATIONAL BRIEF THORN EMI PLC BRITISH GROUP'S PRETAX PROFIT NEARLY DOUBLED IN 12 MONTHS BRITISH MUSIC AND INDUSTRIAL LIGHTING GROUP THORN EMI PLC SAID PROFIT NEARLY DOUBLED FOR THE YEAR ENDED MARCH 31 HELPED BY SMALLER EXCEPTIONAL CHARGES AND INTEREST COSTS PRETAX PROFIT JUMPED TO 2899 MILLION 4456 MILLION FROM 1479 MILLION OPERATING PROFIT ROSE 35 THORN SAID OR 16 EXCLUDING THE ADDITION DURING THE YEAR OF VIRGIN MUSIC GROUP SALES ROSE 13 TO 445 BILLION FROM 395 BILLION THORN'S RESULTS WERE COMPLICATED BY EXCEPTIONAL ITEMS MAINLY INVOLVING SALES OF UNITS ADJUSTED FOR THE EXCEPTIONAL ITEMS PERSHARE EARNINGS ROSE TO 539 PENCE UP 26 FROM 427 PENCE STILL THE RESULTS WERE BETTER THAN EXPECTED AND THE COMPANY'S SHARES ROSE 26 PENCE OR 31 TO 856 PENCE ON THE LONDON STOCK EXCHANGE MORE THAN 80 OF THE GROUP PROFIT CAME FROM THORN'S MUSIC AND RENTAL DIVISIONS THE COMPANY SAID EMI THE MUSIC SIDE OF THE COMPANY THAT INCLUDES VIRGIN HAD RECORD SALES OF 151 BILLION AND A PROFIT OF 1969 MILLION VIRGIN CONTRIBUTED 531 MILLION TO THE BOTTOM LINE 9305260060 930526 BUSINESS BRIEF WESTVACO CORP FISCAL 2ND PERIOD NET FELL 52 ON WEAKER SIGNS OF UPTURN WESTVACO CORP REPORTED A 52 DROP IN FISCAL SECONDQUARTER NET INCOME CITING DIMINISHED SIGNS OF AN ECONOMIC UPTURN FOR THE LATEST QUARTER ENDED APRIL 30 NET INCOME FELL TO 194 MILLION OR 30 CENTS A SHARE FROM 404 MILLION OR 61 CENTS A SHARE A YEAR EARLIER SALES FELL 2 TO 5795 MILLION FROM 5934 MILLION A YEAR EARLIER JOHN A LUKE JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MAKER OF PAPER PACKAGING AND CHEMICALS IN NEW YORK SAID SIGNS OF AN ECONOMIC UPTURN DIMINISHED DURING THE LATEST QUARTER BAD WEATHER HAMPERED THE US ECONOMY DURING THE PERIOD HE SAID IN RESPONSE TO A QUESTION A WESTVACO SPOKESMAN SAID PRICE TRENDS FOR THE COMPANY'S PAPER PRODUCTS WERE MIXED IN THE LATEST QUARTER WITH SIGNS OF POSSIBLE IMPROVEMENT IN THE FINEPAPER MARKET AND SOME PRICE EROSION IN THE LINERBOARD MARKET 9305260059 930526 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINESE PARAMOUNT LEADER DENG XIAOPING SANCTIONED ECONOMIC AUSTERITY MEASURES TO WARD OFF RUNAWAY INFLATION AND CHECK PROVINCES' FINANCIAL EXCESSES A HONG KONG NEWSPAPER SAID DETAILING MR DENG'S SUPPORT FOR RETRENCHMENT PRESIDENT JIANG ZEMIN WARNED COMMUNIST PARTY OFFICIALS THAT IF THE ECONOMY TURNS SOUR INFLATION COULD PROMPT SOCIAL AND POLITICAL UNREST THE SOUTH CHINA MORNING POST REPORTED THE 88YEAROLD PATRIARCH PROMPTED CHINA'S EXPLOSIVE GROWTH BY BACKING MORE MARKET REFORMS IN JANUARY 1992 MR JIANG SENT TEAMS NATIONWIDE TO EXERT GREATER FINANCIAL DISCIPLINE ON REGIONAL AUTHORITIES THE PAPER SAID IN THIS YEAR'S FIRST FOUR MONTHS INFRASTRUCTURE INVESTMENT SOARED 69 FROM A YEAR EARLIER TO 972 BILLION YUAN 17 BILLION ALMOST HALF BY LOCAL ENTERPRISES BEIJING ALSO IS STIFFENING CONTROLS ON INVESTMENT PROJECTS INCLUDING DEVELOPMENT OF PROPERTY AND SPECIAL ECONOMIC ZONES AND TRYING TO RESTRICT GROWTH OF THE MONEY SUPPLY TO THE RELIEF OF FOREIGNERS HEAVILY INVESTED IN THE PESO MEXICO IS CURBING THE GROWTH OF ITS TRADE DEFICIT THAT AUGURS WELL FOR EXCHANGERATE STABILITY AS NEGOTIATIONS ON THE NORTH AMERICAN FREE TRADE AGREEMENT REACH A DELICATE STAGE FIRSTQUARTER IMPORTS ROSE 10 TO 153 BILLION THE SMALLEST QUARTERLY INCREASE IN THREE YEARS AND WELL BELOW THE 29 JUMP A YEAR EARLIER NONOIL EXPORTS SURGED 12 UPON NAFTA'S APPROVAL MEXICO EXPECTS A SURGE IN FOREIGN INVESTMENT TO FUND THE TRADE DEFICIT AND PRIME ECONOMIC GROWTH THE DEFICIT IN THE CURRENT ACCOUNT THE BROADEST MEASURE OF TRADE MAY WIDEN TO 25 BILLION THIS YEAR FROM 23 BILLION LAST YEAR GERMANY IS CONSIDERING A SPECIAL BUDGET LAW TO CUT SPENDING BY 20 BILLION MARKS 1223 BILLION NEXT YEAR TO CURB THE RUNAWAY FEDERAL DEFICIT FINANCE MINISTER THEO WAIGEL HAS SAID THAT WITHOUT BUDGET REDUCTIONS INCLUDING SOCIAL SPENDING THE DEFICIT COULD SWELL TO 90 BILLION MARKS IN THE NEXT FISCAL YEAR A NEW BUDGET LAW COULD HELP MR WAIGEL MEET DEFICIT TARGETS THE CAMPAIGN CAME AFTER OFFICIALS CONCEDED THE BUDGET GAP IN THE CURRENT YEAR COULD TOTAL 70 BILLION MARKS UP FROM AN INITIAL ESTIMATE OF 43 BILLION MARKS REVIVING INFLATION FEARS AND UPSETTING MARKETS TO KEEP ITS DISPUTED RAILPRIVATIZATION PROGRAM ON TRACK BRITAIN PROMISED TO PRESERVE DISCOUNT FARES FOR PENSIONERS THE DISABLED AND YOUTHS THE VOW TO DEFUSE ANOTHER POLITICAL REBELLION WAS THE LATEST EMBARRASSING POLICY UTURN BY THE RULING CONSERVATIVES IN THE PLAN TO DIVIDE THE RAIL NETWORK INTO FRANCHISES UNDER INDEPENDENT OPERATORS OPENING A PARLIAMENTARY DEBATE ON THE PLAN THE GOVERNMENT BACKED CONCESSIONARY FARES AND TRANSFERS TO OTHER NETWORKS SUCH AS BUS AND SUBWAY SYSTEMS MATTERS THAT IT PREVIOUSLY WANTED TO LEAVE UP TO THE OPERATORS JAPAN'S NINE AIRLINES WILL PROHIBIT USE OF PERSONAL COMPUTERS COMPACT DISK PLAYERS VIDEO GAMES AND OTHER ELECTRONIC DEVICES DURING TAKEOFFS AND LANDINGS STARTING IN JUNE THE POLICY IS IN LINE WITH STANDARDS OF THE INTERNATIONAL AIR TRANSPORT ASSOCIATION WHICH FEARS THAT THESE DEVICES MAY INTERFERE WITH AIRLINERS' NAVIGATION INSTRUMENTS THOUGH FEW SUCH INCIDENTS HAVE BEEN REPORTED SOME US AIRLINES HAVE ADOPTED SIMILAR POLICIES JAPAN WAS THE TOP CREDITOR NATION AGAIN LAST YEAR WITH THE VALUE OF ITS OVERSEAS ASSETS EXCEEDING FOREIGN LIABILITIES BY A RECORD 5136 BILLION FOREIGN ASSETS ROSE 14 TO 204 TRILLION FROM 1991 AS PRIVATE INVESTMENT AND PURCHASES OF STOCKS AND BONDS EDGED UP LIABILITIES FELL 63 TO 152 TRILLION THE FINANCE MINISTRY TALLY MAY INTENSIFY CALLS BY JAPAN'S TRADING PARTNERS FOR STRONGER EFFORTS TO PARE ITS BIG TRADE SURPLUSES BY SELLING MORE GOODS ABROAD THAN IT BUYS JAPAN HAS SPARE CASH FOR OVERSEAS LOANS AND INVESTMENTS SINCE 1985 WHEN INDUSTRIAL NATIONS COORDINATED MONETARY POLICIES TO BOOST THE YEN'S VALUE JAPAN HAS BEEN THE WORLD'S LARGEST CREDITOR NATION EXCEPT IN 1990 WHEN IT WAS BUMPED OUT BY GERMANY THE MOVE WAS PART OF EFFORTS TO CUT JAPAN'S TRADE SURPLUS BY MAKING ITS GOODS MORE EXPENSIVE ABROAD AND FOREIGN GOODS CHEAPER IN JAPAN BUT THIS ALSO MADE IT EASIER FOR JAPANESE TO BUY FOREIGN ASSETS AND HASN'T DENTED THE SURPLUS CHINA DESIGNATED 3000 COMPANIES INCLUDING GIANT STATERUN ENTERPRISES AS THE COUNTRY'S WORST POLLUTERS BUT DIDN'T SPECIFY PENALTIES THE CHINESE MOVIE FAREWELL TO MY CONCUBINE WHICH SHARED TOP HONORS AT THE 1993 CANNES FILM FESTIVAL AND WAS PRODUCED IN HONG KONG CAN'T BE SHOWN AT COMMERCIAL THEATERS IN TAIWAN WHICH BANS SHOWING ANY FILM TV PROGRAM OR VIDEOCASSETTE IN WHICH MORE THAN HALF THE PERFORMERS ARE FROM CHINA 9305260058 930526 BUSINESS BRIEF FIAT SPA AUTO MAKER SEEKS ACCESS TO EMERGENCY JOBLESS AID FIAT SPA MILAN SAID IT APPLIED FOR ACCESS TO ONE ADDITIONAL YEAR OF STATESUBSIDIZED PAY FOR LAID OFF WORKERS UNDER ITALIAN LAW COMPANIES FACED WITH DIFFICULT MARKET CONDITIONS ARE ENTITLED TO TEMPORARILY REDUCE THEIR WORK FORCE AND PUT THE IDLED WORKERS UNDER A GOVERNMENT PLAN THAT PAYS THEM 80 OF THEIR SALARY FROM A PUBLICLY MANAGED FUND COMPANIES MAKE MANDATORY CONTRIBUTIONS TO THE FUND COMPANIES CAN PLACE WORKERS IN THE SUBSIDIZED PLAN FOR A TOTAL OF 52 WEEKS OVER A PERIOD OF TWO YEARS IN ORDER TO QUALIFY FOR THE ADDITIONAL YEAR A GOVERNMENT COMMITTEE MUST DECLARE FIAT IN AN OFFICIAL STATE OF CRISIS FIAT FACED WITH A SHARP DOWNTURN IN THE CAR MARKET IN ITALY AND THE REST OF EUROPE HAS IDLED PART OF ITS WORK FORCE AND CUT OUTPUT FOR SEVERAL WEEKS NEARLY EVERY MONTH OVER THE PAST TWO YEARS FIAT AUTO EMPLOYS ABOUT 129000 HOPEFUL THAT THE EUROPEAN CAR MARKET WILL RECOVER IN 1994 FIAT HAS REFUSED TO MAKE PERMANENT CUTS IN ITS PRODUCTION CAPACITY AND INSTEAD HAS EMBARKED ON A MAJOR INVESTMENT PROGRAM 9305260057 930526 HEARD ON THE STREET ACUFF'S LOWKEY STYLE IS ABOUT TO REPLACE GARZARELLI'S GLITTER AT SMITH BARNEY SHEARSON BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THOUSANDS OF INVESTORS USING THE SHEARSON LEHMAN BROTHERS BROKERAGE FIRM ARE IN FOR A SHOCK THEY'RE ABOUT TO GO FROM THE INVESTING EQUIVALENT OF DEMI MOORE TO SOMEONE CLOSER TO ANDY GRIFFITH UNTIL NOW MANY OF THESE INVESTORS HAVE BEEN FOLLOWING THE MARKET ADVICE OF GLAMOROUS ELAINE GARZARELLI SHEARSON'S BESTKNOWN PORTFOLIO STRATEGIST WHETHER ON TV OR IN PRINT MS GARZARELLI HAS BEEN ONE OF THE MARKET'S BIGGEST BULLS IN RECENT MONTHS SAYING BUY BUY BUY BUT THEY'LL GET A DECIDEDLY DIFFERENT VOICE WHEN SHEARSON IS ABSORBED IN JULY BY PRIMERICA'S SMITH BARNEY BROKERAGE UNIT AS MS GARZARELLI REMAINS BEHIND TO SERVE MAINLY INSTITUTIONAL CLIENTS IN SHEARSON'S FORMER LEHMAN BROTHERS DIVISION THE NEW PORTFOLIO STRATEGIST FOR CUSTOMERS OF THE COMBINED SMITH BARNEY SHEARSON WILL BE 53YEAROLD A MARSHALL ACUFF JR HE AND MS GARZARELLI COULDN'T BE MORE DISSIMILAR MS GARZARELLI PREDICTS AS MUCH AS A 400POINT RISE IN THE DOW IN THE NEXT YEAR TO 3900 MR ACUFF SAYS THAT'S POSSIBLE IN 1994 BUT WORRIES IT COULD GO 200 POINTS THE OTHER WAY MS GARZARELLI USES COMPUTER MODELS THAT DEVOUR ENTIRE SECTORS OF THE MARKET MR ACUFF FIDDLES WITH SHORT LISTS OF ECLECTIC STOCK PICKS MS GARZARELLI BOOSTS HER PROFILE THROUGH TV ADS FOR PANTYHOSE MR ACUFF WOULD RATHER BE GOLFING WE THINK THE STOCK MARKET IS STILL IN A TRADING RANGE SORT OF THING SAYS MR ACUFF SOUNDING NOTHING LIKE THE EXCITABLE MS GARZARELLI ROBERT STOVALL OF STOVALL/TWENTYFIRST ADVISERS WHO KNOWS BOTH FORECASTERS SAYS MARSHALL IS A FUNDAMENTAL CONCEPTUAL STOCKPICKER WHILE MS GARZARELLI IS THE ULTIMATE QUANTITATIVE ANALYST SHE APPROACHES THINGS NUMERICALLY AS FOR PERSONALITY MR STOVALL SAYS MARSHALL ACUFF LOOKS AND TALKS LIKE AN ASSOCIATE PROFESSOR OF FINANCE AT A STATE UNIVERSITY WHEREAS WITH ELAINE I WOULDN'T BE SURPRISED TO SEE HER GIVING HER FORECAST ON A SPOTLIGHTED PODIUM IN A SEQUIN GOWN STILL THE MERGER WILL GIVE MR ACUFF'S PROFILE ON WALL STREET A BIG BOOST AS HE GOES FROM RELATIVE OBSCURITY AT THE SEVENTHBIGGEST US BROKERAGE FIRM TO THE NO 1 MAN AT THE NEW SMITH BARNEYSHEARSON COLOSSUS HE WILL BE ABLE TO INFLUENCE STOCK PRICES AS NEVER BEFORE ALREADY PLANS ARE BEING MADE FOR MR ACUFF TO ADDRESS SHEARSON'S 8500 BROKERS WHO GENERALLY LIKED MS GARZARELLI HE KNOWS IT COULD BE A SKEPTICAL AUDIENCE THE BROKERS PROFITED FROM THE MARKET OUTLOOK OF MS GARZARELLI AFTER ALL SHE GETS PEOPLE TO BUY STOCKS AND MR ACUFF WILL HAVE TO CONVINCE THE BROKERS AND SHEARSON INVESTORS THAT HE CAN HELP PEOPLE MAKE MONEY HE SAYS THERE WILL BE NO PROBLEM IN SELLING THE BROKERS ON HIS STYLE OF IDENTIFYING MARKET THEMES THEN PICKING STOCKS HE HOPES WILL TAKE ADVANTAGE OF THEM THESE DAYS FOR EXAMPLE HE LIKES COMPANIES WITH A US RATHER THAN A GLOBAL FOCUS SUCH AS AH BELO A TEXAS NEWSPAPER PUBLISHER AND BROADCASTER PARADOXICALLY HE ALSO SEES OVERSEAS GROWTH FOR US COMPANIES WITH POWERFUL BRAND NAMES LIKE MCDONALD'S AND HE SEES MASSIVE CONSTRUCTION PROJECTS IN ASIA AND LATIN AMERICA BOOSTING EMERSON ELECTRIC DRESSER INDUSTRIES YORK INTERNATIONAL CATERPILLAR AND MCDERMOTT INTERNATIONAL WHILE MR ACUFF DOESN'T SEE THE OVERALL MARKET SOARING AS MS GARZARELLI DOES HE INSISTS I AM NOT A BEAR IN FACT HE SAYS HE TURNED DOWN A TV PROGRAM THAT WANTED TO FEATURE HIM AS A REPRESENTATIVE BEAR HE JUST THINKS IT'S A TIME TO BE CAREFUL AND TO TAKES RISKS ONLY IN INDIVIDUAL STOCKS ELAINE CONTINUES TO BE MORE OF A TABLE POUNDER AT THE MOMENT WE'RE A BIT MORE SUBTLE AND FOCUSED ON INDIVIDUAL STOCKS SAYS MR ACUFF WHO HAS SPENT HIS ENTIRE 27YEAR CAREER AT SMITH BARNEY HE SAYS HE DOESN'T HAVE TO START RECOMMENDING MORE STOCKS JUST SO THE HUGE SHEARSON BROKERAGE FORCE HAS SOMETHING TO SELL THERE'S PLENTY OF GENERAL ELECTRIC ANOTHER ONE OF HIS PICKS TO GO AROUND HE NOTES HE ADDS THAT HE DOESN'T DISAGREE WITH MS GARZARELLI'S RATIONALE FOR BEING BULLISH WHICH IS BASED ON OPTIMISM ABOUT THE ECONOMY WE WOULD NOT DISAGREE WITH ELAINE'S TARGETS WE WOULDN'T DISAGREE WITH ELAINE'S RATIONALE SAYS MR ACUFF MAYBE WE'RE JUST NOT POUNDING THE TABLE AS ELAINE IS BECAUSE OUR FOCUS IS REALLY ON AN ECLECTIC LIST OF INDIVIDUAL STOCKS ONE OF THOSE STOCKS IS DEERE WHICH MR ACUFF PUT ON HIS BUY LIST MONDAY HE TOOK A CHANCE BY RECOMMENDING THE STOCK JUST A DAY BEFORE EARNINGS CAME OUT BUT YESTERDAY RESPONDING TO FAVORABLE NEWS DEERE SOARED 2 3/4 TO 63 7/8 BY SOME MEASURES SMITH BARNEY'S REPUTATION FOR STOCKPICKING HASN'T BEEN GOOD IN THE REGULAR SURVEY DONE BY THE WALL STREET JOURNAL AND ZACKS INVESTMENT RESEARCH THE FIRM FINISHED LAST WITH A 91 GAIN IN THE PERFORMANCE OF ITS RECOMMENDED STOCKS IN THE PAST YEAR IT HAS DONE A LOT BETTER IN THE LATEST QUARTER WITH A 74 GAIN MR ACUFF SAYS HE ISN'T INVOLVED IN PREPARING THAT PARTICULAR LIST BUT HIS OWN LIST ALSO PUBLISHED BY SMITH BARNEY IS UP 83 THIS YEAR HE SAYS SHEARSON CLIENTS WHO ARE FANS OF MS GARZARELLI WON'T LOSE HER JUST YET AS PART OF THE MERGER HER WRITTEN REPORTS WILL BE PROVIDED TO SHEARSON BROKERS FOR A YEAR BUT SHE'LL NO LONGER HAVE THE 8500 SHEARSON BROKERS A PHONE CALL AWAY MS GARZARELLI SAID SHE WILL DEEPLY MISS THOSE BROKERS BECAUSE WE WORKED CLOSELY TOGETHER 9305260056 930526 CREDIT RATINGS FEDERATED DEPARTMENT STORES INC CINCINNATI MOODY'S INVESTORS SERVICE INC RAISED ITS RATING ON FEDERATED'S SUBORDINATED DEBT CITING THE RETAILER'S UPWARD EARNINGS TREND AND RETIREMENT OF ANOTHER DEBT ISSUE ABOUT 272 MILLION OF DEBT ALL SENIOR CONVERTIBLE DISCOUNT NOTES IS AFFECTED MOODY'S RAISED THE RATING TO BA3 FROM SINGLEB2 THE RETAILER SINCE COMING OUT OF BANKRUPTCY COURT IN EARLY 1992 HAS SHOWN SIGNIFICANT INCREASES IN EARNINGS AND CASH FLOW ALLOWING IT TO PAY DOWN MUCH DEBT MOODY'S SAID IT NOTED THAT FEDERATED IN MARCH HAD PAID OFF FROM INTERNALLY GENERATED CASH ITS 355 MILLION OUTSTANDING OF SERIES B NOTES FEDERATED SHOULD SHOW CONSISTENT EARNINGS IMPROVEMENT IN THE NEXT SEVERAL YEARS MOODY'S SAID HOWEVER THE RATINGS CONCERN SAID FEDERATED'S BALANCE SHEET HAS MORE THAN 16 BILLION OF SECURED DEBT WHICH IS SENIOR TO THE DISCOUNT NOTES THAT CURRENTLY LIMITS THE POTENTIAL FOR FURTHER RATINGS UPGRADES FOR THE DISCOUNT NOTES MOODY'S SAID ALSO IT DOESN'T EXPECT FEDERATED TO REDUCE DEBT FURTHER AS MOST EXCESS CASH WILL GO TO INCREASED CAPITAL SPENDING FOR STORE EXPANSION AND REMODELING 9305260055 930526 TUESDAY'S MARKETS BOND PRICES END LOWER STOCKS GAIN CREDIT MARKETS REACT TO CONFLICTING DATA IN VOLATILE TRADING BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL LONGTERM BOND PRICES ENDED LOWER IN VOLATILE TRADING SPARKED BY CONFLICTING ECONOMIC REPORTS STOCK PRICES EDGED HIGHER AND THE DOLLAR FELL TO A RECORD LOW AGAINST THE YEN THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST 1/8 POINT OR 125 FOR EACH 1000 FACE AMOUNT THE YIELD ROSE TO 7008 THE DOW JONES INDUSTRIAL AVERAGE GAINED 885 POINTS TO 351663 STANDARD & POOR'S 500STOCK INDEX INCHED UP 085 TO 44885 AND THE NASDAQ COMPOSITE INDEX ROSE 035 TO 69504 BOND PRICES SURGED IN EARLY TRADING AFTER THE CONFERENCE BOARD REPORTED A DROP IN CONSUMER CONFIDENCE IN MAY BOND INVESTORS WERE FURTHER ENCOURAGED BY SLOWERTHANEXPECTED SALES OF EXISTING SINGLEFAMILY HOMES IN APRIL BUT BOND PRICES REVERSED COURSE IN THE AFTERNOON WHEN FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID THE US MAY BE FACING A MAJOR EXPANSION IN EMPLOYMENT FURTHER WEAKENING THE BOND MARKET WERE REPORTS OF STRONG AUTO SALES IN MIDMAY AND A DECLINE IN THE DOLLAR THE BOND MARKET IS VERY SKITTISH RIGHT NOW SAID MICKEY D LEVY CHIEF ECONOMIST AT CRT GOVERNMENT SECURITIES YESTERDAY IT GOT SOME CONFLICTING REPORTS AND IT RESPONDED ACCORDINGLY ANALYSTS SAID FINANCIAL MARKETS ARE NERVOUS ABOUT PRESIDENT CLINTON'S BUDGET DEFICITREDUCTION PACKAGE EVERYTHING COMING OUT OF WASHINGTON IS CREATING UNCERTAINTY MR LEVY SAID THE CLEAR IMPRESSION IS THAT FISCAL POLICY IS IN DISARRAY MR LEVY BLAMED THE UNCERTAINTY IN WASHINGTON FOR SOME OF THE DOLLAR'S WEAKNESS BUT TREASURY UNDERSECRETARY LAWRENCE SUMMERS TESTIFYING BEFORE CONGRESS YESTERDAY FAILED TO SHED ANY LIGHT ON THE DOLLAR'S SLUMP WE REJECT ARTIFICIAL MANIPULATION OF EXCHANGE RATES HE SAID AND IT IS OUR FIRM CONVICTION THAT THERE IS NO WAY TO DEVALUE YOURSELF INTO PROSPERITY BUT HE ADDED THAT WHEN EXCHANGE RATES MOVE THEY DO HAVE AN IMPACT ON COMPETITIVENESS AND THAT DOES OVER TIME SHOW UP IN TRADE FLOWS BUT THAT IN NO WAY JUSTIFIES OR CONSTITUTES ANY ARGUMENT FOR A POLICY OF TRYING TO DEVALUE YOUR WAY INTO PROSPERITY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 092 TO 10652 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2221 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1127 ISSUES ROSE AND 795 FELL BOND PRICES WERE MIXED THE TREASURY'S 10YEAR ISSUE ROSE SLIGHTLY TO YIELD 616 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 10935 YEN AND 16315 MARKS COMPARED WITH 11065 YEN AND 16374 MARKS MONDAY 9305260054 930526 WHAT'S NEWS BUSINESS AND FINANCE CLINTON AND DEMOCRATIC CONGRESSIONAL LEADERS SHORED UP SUPPORT FOR THE ADMINISTRATION'S ECONOMIC PACKAGE WITH THE PROSPECT OF CONCESSIONS ON BOTH TAX AND SPENDING ISSUES THE MOVES APPEARED TO IMPROVE CHANCES FOR A DEFICITREDUCTION PROGRAM SOME MODERATE REPUBLICANS IN THE SENATE ARE QUIETLY WORKING ON A HEALTHREFORM PROPOSAL THAT INCORPORATES CERTAIN CLINTON MANAGED COMPETITION FEATURES BUT DOESN'T INCLUDE MUCH OF THE GOVERNMENT REGULATION BLUE CROSS OF CALIFORNIA PLANS TO SHRINK BY 5 TO 6 ITS PAYMENTS FOR VARIOUS SPECIALTY PROCEDURES THE SURPRISE MOVE COULD AUGUR WIDESPREAD ATTEMPTS ELSEWHERE TO CUT DOCTOR BILLS CONSUMER CONFIDENCE PLUNGED IN MAY TO ITS LOWEST LEVEL SINCE JUST BEFORE THE PRESIDENT'S ELECTION RAISING FURTHER CONCERNS ABOUT THE ECONOMY EXCEPT FOR A SMALL RISE IN APRIL THE CONFIDENCE INDEX HAS SEEN A FAIRLY STEADY FALL SINCE THE FIRST OF THE YEAR THE SELLING PACE OF USBUILT VEHICLES SURGED IN MIDMAY TO 1993'S HIGHEST LEVEL DESPITE THE CONFIDENCE DROP DELL COMPUTER'S STOCK PLUMMETED 7375 OR 23 TO 2475 AFTER THE COMPANY REVEALED THAT A DROP IN ITS FIRSTQUARTER EARNINGS WAS EVEN STEEPER THAN ANALYSTS HAD ANTICIPATED SALES OF EXISTING HOMES ROSE A MODERATE 27 IN APRIL FROM THE PRIOR MONTH REVERSING A THREEMONTH SLIDE CAUSED BY UNUSUALLY WET WEATHER STOCK MUTUAL FUNDS TOOK IN A RECORD 116 BILLION IN APRIL REFLECTING INVESTORS' RUSH TO PUT MONEY IN IRAS BEFORE THE APRIL 15 TAX FILING DEADLINE SALES IN MAY ARE OFF FROM APRIL'S PACE IBM FACES A HUGE POTENTIAL LIABILITY FROM THE CIGARETTE WARS BECAUSE ITS CONTRACT WITH ITS CHAIRMAN LOUIS GERSTNER GUARANTEES THE VALUE OF STOCK AND OPTIONS HE HOLDS IN RJR BAXTER INTERNATIONAL WILL LOSE UP TO 50 MILLION IN BUSINESS OVER THE NEXT YEAR FROM A MAJOR HOSPITAL GROUP THAT IS PROTESTING ITS MIDDLE EAST ACTIONS CARL ICAHN LOST HIS BID FOR CONTROL OF EII HOLDINGS WHEN A FEDERAL BANKRUPTCY JUDGE RULED IN FAVOR OF THE COMPANY'S OWN REORGANIZATION PLAN GERMANY SAID IT HAS ENOUGH EVIDENCE TO PROBE ALLEGATIONS THAT J IGNACIO LOPEZ DE ARRIORTUA STOLE SECRET GM DATA WHEN HE JUMPED TO VW BUT COULD TAKE MORE THAN SIX MONTHS TO DECIDE IF IT WILL PURSUE CRIMINAL CHARGES STOCKS VOLUME 222094080 SHARES DOW JONES INDUSTRIALS 351663 UP 885 TRANSPORTATION 158920 UP 441 UTILITIES 23617 UP 126 BONDS LEHMAN BROTHERS TREASURY INDEX 504528 UP 269 COMMODITIES OIL 1990 A BARREL UP 18 CENTS DOW JONES FUTURES INDEX 12238 UP 061 SPOT INDEX 12114 OFF 046 DOLLAR 10935 YEN OFF 130 16315 MARKS OFF 00059 9305260053 930526 INTERNATIONAL BRIEF NIPPON TELEGRAPH & TELEPHONE CORP CONSOLIDATED PRETAX PROFIT DROPPED 28 IN FISCAL YEAR NIPPON TELEGRAPH & TELEPHONE CORP JAPAN'S GIANT TELECOMMUNICATIONS COMPANY REPORTED CONSOLIDATED PRETAX PROFIT FELL 28 IN THE YEAR ENDED MARCH 31 NTT CITED THE SLOW GROWTH IN TELEPHONE SUBSCRIBER SALES AND A DROP IN CALLRATE REVENUE DUE TO RATE REDUCTIONS MADE TO KEEP COMPETITIVE PRETAX PROFIT TOTALED 26523 BILLION YEN 240 BILLION DOWN FROM 36672 BILLION YEN NET INCOME MEANWHILE FELL 12 TO 16755 BILLION YEN AND REVENUE EDGED UP 17 TO 6504 TRILLION YEN 5884 BILLION FOR THE CURRENT FISCAL YEAR THE COMPANY PREDICTED CONTINUED SHARP DECLINES IN PROFIT REFLECTING ITS DIFFICULT MANAGEMENT ENVIRONMENT AND INTENSIFYING COMPETITION NTT PREDICTS ONLY A MARGINAL INCREASE IN REVENUE FOR THE YEAR LAST FRIDAY NTT APPLIED TO THE GOVERNMENT SEEKING PERMISSION TO RAISE RATES INCLUDING A TRIPLING OF THE RATE FOR PUBLIC PHONES TO 10 YEN A MINUTE FROM 10 YEN FOR THREE MINUTES AT PRESENT THE GOVERNMENT IS EXPECTED TO APPROVE THE INCREASES ALTHOUGH NTT SAID ITS FORECASTS ARE BASED ON CURRENT RATES 9305260052 930526 ECONOMY SALES OF EXISTING HOMES ROSE 27 IN APRIL REVERSING THREEMONTH SLIDE BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF PREVIOUSLY OWNED HOMES ROSE A MODEST 27 IN APRIL FROM THE PRIOR MONTH REVERSING A THREEMONTH SLIDE BROUGHT ON LARGELY BY UNUSUALLY WET WEATHER THROUGH MUCH OF THE COUNTRY THE MONTH'S RESALE VOLUME ROSE TO 346 MILLION FROM A REVISED 337 MILLION ON A SEASONALLY ADJUSTED ANNUALIZED BASIS ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS INDUSTRY ANALYSTS SAID THE MARKET REBOUNDED AMID IMPROVED WEATHER CONDITIONS AND CONTINUED LOW INTEREST RATES THIS RESALE ACTIVITY IS THE RESPONSE WE EXPECTED TO SEE AFTER THE WINTER'S BAD WEATHER CONDITIONS WHICH DAMPENED SALES SAID WILLIAM S CHEE PRESIDENT OF THE WASHINGTON DCBASED TRADE GROUP AND A HONOLULU BROKER WE EXPECT SALES WILL RISE THROUGH THE REST OF THE YEAR THOUGH MANY HOUSING ECONOMISTS VIEW THE APRIL INCREASE AS DISAPPOINTINGLY SMALL GIVEN THE SHARP 165 PLUNGE IN SALES BETWEEN DECEMBER AND MARCH THE MARKET IS RECOVERING SOLIDLY OUTSIDE THE STILLSLUGGISH COASTS SALES IN THE HEALTHIEST MIDWEST FOR INSTANCE ROSE 43 IN APRIL FROM THE PREVIOUS MONTH AND THE WEST POSTED A 28 INCREASE DESPITE A 28 DECLINE IN THE HUGE CALIFORNIA MARKET RESALES IN THE SOUTH AND NORTHEAST WERE ESSENTIALLY FLAT FOR ITS PART IRVINE CALIFBASED CENTURY 21 REAL ESTATE CORP REPORTS THAT ITS SALES VOLUME SOARED 29 IN THE SOUTHWEST DURING THE FIRST QUARTER OVER A YEAR AGO AND 24 IN THE ROCKY MOUNTAIN STATES DURING THE SAME PERIOD CENTURY 21 THE RESIDENTIAL BROKERAGE UNIT OF METROPOLITAN LIFE INSURANCE CO NEW YORK SAID ITS NATIONWIDE SALES IN APRIL WERE UP ABOUT 6 FROM A YEAR AGO IT APPEARS THAT THE HOUSING RECOVERY IS WELL UNDER WAY SAID RICHARD J LOUGHLIN CENTURY 21'S PRESIDENT AND CHIEF EXECUTIVE OFFICER THE STRONG ACTIVITY NATIONWIDE HAS CONTINUED INTO THE CURRENT QUARTER MR LOUGHLIN SAID AS INTEREST RATES OF BELOW 8 HAVE PRODUCED THE MOST AFFORDABLE HOUSING IN TWO DECADES THOUGH RATES HAVE SPIKED UP SLIGHTLY IN RECENT WEEKS ON INFLATION JITTERS MARKET ANALYSTS AGREE THE ECONOMY IS TOO WEAK FOR THEM TO RISE SIGNIFICANTLY MORE MORTGAGE INDICATORS SUGGEST THIS MONTH'S EXISTINGHOME SALES WILL BE ROBUST A HOMELOAN PURCHASE INDEX BY THE MORTGAGE BANKERS ASSOCIATION WAS RUNNING AT LEAST 64 ABOVE NORMAL IN FEBRUARY AND MARCH SINCE IT TAKES UP TO 60 DAYS TO CLOSE A SALE THOSE NUMBERS SUGGEST A BULGE OF HOME CLOSINGS THIS MONTH BUT THE SAME INDEX SEEN AS A BETTER LEADING INDICATOR THAN THE EXISTINGHOME SALES WHICH REFLECT CLOSING OF SALES STARTED AS MUCH AS TWO MONTHS PREVIOUS HAS DECLINED FAIRLY STEADILY IN RECENT WEEKS PORTENDING A POSSIBLE SLOWDOWN IN THE HOUSING RECOVERY THIS SUMMER THE INDEX HAS SLIPPED TO A STILLHEALTHY 48 ABOVE NORMAL APPARENTLY DUE TO GROWING CONSUMER UNEASINESS OVER THE LACKLUSTER ECONOMY WE WILL SEE SOME GOOD MAY NUMBERS AND THEN I'M CONCERNED SAID DAVID LEREAH CHIEF ECONOMIST FOR THE MORTGAGE BANKERS' TRADE GROUP A NATIONAL ASSOCIATION OF HOME BUILDERS POLL OF ITS MEMBERS REFLECTS THE SAME UNCERTAINTY IN A SURVEY EARLIER THIS MONTH ONLY 35 OF BUILDERS SAID THEY EXPECTED GOOD TO EXCELLENT SALES IN THE ENSUING SIX MONTHS VS 47 WHO SO RESPONDED IN A DECEMBER POLL THE TONE OF THE MARKET IS SOMEWHAT IN QUESTION SAID DAVID F SEIDERS CHIEF ECONOMIST FOR THE BUILDERS' GROUP THERE IS A GOOD BIT OF UNCERTAINTY ABOUT THE PROSPECT OF HIGHER TAXES ADDS CENTURY 21'S MR LOUGHLIN HOPEFULLY WE'RE NOT GOING TO HAVE ANY HUGE SCARES OUT OF WASHINGTON WHATEVER HAPPENS NO ONE IS SUGGESTING THE HOUSING RECOVERY WILL STALL THE LOW INTEREST RATES FOR ONE THING HAVE SPURRED SOCALLED TRADEUP BUYERS TO MOVE INTO A BIGGER HOME ADDING TO THE MOMENTUM STARTED BY FIRSTTIME BUYERS ALSO ROBERT VAN ORDER CHIEF ECONOMIST FOR THE FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC SAID ENOUGH CONSUMERS HAVE DEFERRED PURCHASES FOR THE PAST TWO YEARS TO FUEL FUTURE SALES IF PEOPLE DO GET SOME CONFIDENCE THEY OUGHT TO BUY PROPERTY RAPIDLY SAID MR VAN ORDER WHO ALONG WITH SOME OTHER ECONOMISTS STILL EXPECTS A BOOMLEVEL OF 38 MILLION RESALES THIS YEAR VS THE 35 MILLION LAST YEAR 9305260051 930526 LETTERS TO THE EDITOR WE DON'T BEAT UP ON THE OLDTIMERS IN YOUR APRIL 12 ABREAST OF THE MARKET COLUMN ANALYST JEFFREY SHAMES OF MASSACHUSETTS FINANCIAL SERVICES DESCRIBED HOME DEPOT'S STRATEGY AS TAKING ON OLDTIME HARDWARE STORES AND DRIVING THEM OUT OF BUSINESS THIS IS NEITHER OUR FOCUS NOR OUR STRATEGY WITH REGARD TO SMALL HARDWARE STORES WE BELIEVE THEY HAVE AS STRONG AND VIABLE A NICHE IN THE HOMEIMPROVEMENT MARKET AS THE CONVENIENCE STORES AND THE SPECIALTYPRODUCT AND SERVICE PROVIDERS SMALL ENTREPRENEURIAL HARDWARE STORES THAT ARE WELLMANAGED HAVE SURVIVED AND INDEED THRIVED ALONGSIDE OUR STORES EVEN WITH OUR TREMENDOUS GROWTH HOME DEPOT'S REVENUES FOR FISCAL 1992 REFLECT JUST 7 OF THE TOTAL 106 BILLION ANNUAL DOMESTIC HOMEIMPROVEMENT PRODUCTS MARKET THERE IS IN FACT MUCH OPPORTUNITY FOR SMALLERSCALE OPERATORS IN OUR INDUSTRY 9305260050 930526 BUSINESS BRIEF DEERE & CO COMPANY'S PROFIT FELL 31 IN ITS FISCAL SECOND QUARTER DEERE & CO REPORTED A 31 DECLINE IN FISCAL SECONDQUARTER NET INCOME AFTER TAKING AN 80 MILLION CHARGE TO COVER THE COST OF CUTTING ABOUT 2000 JOBS OR ONEFOURTH OF THE WORK FORCE FROM ITS LACKLUSTER EUROPEAN OPERATIONS BUT NORTH AMERICAN FARM EQUIPMENT SALES IN THE QUARTER ENDED APRIL 30 WERE SIGNIFICANTLY HIGHER THAN A YEAR EARLIER THE FARM LAWN AND INDUSTRIAL EQUIPMENT MAKER IN MOLINE ILL SAID AS A RESULT DEERE SAID IT WAS INCREASING PRODUCTION SCHEDULES WORLDWIDE PRODUCTION TONNAGE IN THE SECOND QUARTER WAS 7 AHEAD OF A YEAR EARLIER AND IS PROJECTED TO BE 8 HIGHER FOR THE ENTIRE YEAR THE COMPANY SAID DEERE REPORTED NET INCOME OF 302 MILLION OR 39 CENTS A SHARE FOR THE QUARTER ENDED APRIL 30 COMPARED WITH 44 MILLION OR 58 CENTS A SHARE IN THE YEAREARLIER QUARTER FISCAL SECONDQUARTER SALES JUMPED 13 TO 211 BILLION FROM 186 BILLION INVESTORS RESPONDED TO THE BULLISH OUTLOOK FOR NORTH AMERICAN SALES DEERE SHARES GAINED 275 TO CLOSE AT 63875 A SHARE IN HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9305260049 930526 BUSINESS BRIEF EMCON UNIT REACHES SETTLEMENT WITH EPA ON LAB RECORDS EMCON SAID ITS COLUMBIA ANALYTICAL SERVICES INC UNIT REACHED A SETTLEMENT WITH THE ENVIRONMENTAL PROTECTION AGENCY OVER ALLEGED IMPROPER LABORATORY PRACTICES THE EPA SUSPENDED COLUMBIA ANALYTICAL FROM COMPETING FOR FEDERAL CONTRACTS LAST JUNE AFTER TWO FORMER EMPLOYEES COMPLAINED THAT THE COMPANY'S KELSO WASH LABORATORY HAD FALSIFIED TESTING RECORDS EPA OFFICIALS SAID THE WORK INVOLVED WAS FOR PRIVATE CONTRACTORS AND DIDN'T INVOLVE ANY FEDERAL AGENCY AN EMCON SPOKESWOMAN SAID YESTERDAY THAT EPA INVESTIGATORS CONCLUDED NO RECORDS HAD BEEN FALSIFIED AND FURTHER ACTION AGAINST COLUMBIA ANALYTICAL WASN'T WARRANTED WE ARE VERY PLEASED TO HAVE REACHED AN AMICABLE SETTLEMENT OF THIS MATTER THE SAN MATEO CALIF ENVIRONMENTAL CONSULTING SERVICES COMPANY HOWEVER EPA OFFICIALS IN SEATTLE SAID WITNESSES HAD PROVIDED RECORDS THAT APPEARED TO SUBSTANTIATE THE ALLEGATIONS THE OFFICIALS SAID THE CASE WAS SETTLED TO AVOID A PROLONGED COURT FIGHT UNDER THE SETTLEMENT EMCON AGREED TO CORRECT SEVERAL TESTING REPORTS AND HIRE AN OVERSEER FOR FEDERAL CONTRACTING WORK HANDLED BY THE LABORATORIES THE COMPANY ALSO AGREED TO INSTITUTE ADDITIONAL QUALITY CONTROLS AT ALL ITS LABORATORIES EMCON SAID THE SETTLEMENT ALLOWS IT TO RESUME BIDDING ON FEDERAL CONTRACTS 9305260047 930526 CREDIT MARKETS BOND PRICES END NARROWLY MIXED ON WEAK DATA ON HOME SALES GREENSPAN COMMENT ON RECOVERY BY TERENCE DONNELLY AND THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK BOND PRICES ENDED NARROWLY MIXED YESTERDAY AFTER A DAY OF CHOPPY TRADING THAT WHIPSAWED PRICES AND INTEREST RATES TRADERS SAID THE MARKET'S GYRATIONS WHICH WERE PROMPTED BY BOTH BULLISH AND BEARISH ECONOMIC NEWS CAUGHT SOME BOND DEALERS BY SURPRISE AND LEFT THE MARKET LITTERED WITH WRECKAGE IN EARLY TRADING PRICES WERE HIGHER BUT PRICES SUDDENLY REVERSED DIRECTIONS LATER IN THE DAY AND DECLINED ON COMMENTS BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN THE MARKET FOCUSED ON TWO MAIN THINGS SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS IN CHICAGO ONE WAS THE TWOYEAR NOTE AUCTION RESULTS WHICH SEEMED PRETTY DARN GOOD AND GREENSPAN'S SPEECH WHICH KNOCKED THE MARKET OFF ITS LITTLE RALLY THE BOND MARKET'S BELLWETHER SECURITY THE 30YEAR TREASURY BOND ENDED 1/8 POINT LOWER YESTERDAY A LOSS OF 125 FOR A BOND WITH A 1000 FACE AMOUNT THE BONDS WERE QUOTED AT A PRICE OF 101 12/32 COMPARED WITH 101 16/32 ON MONDAY THE BENCHMARK BOND'S YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE WAS QUOTED LATE AT 7008 COMPARED WITH 6998 ON MONDAY AFTER NEARLY A WEEK OF RISING YIELDS IN RESPONSE TO AN APPARENT SHIFT BY THE FED TOWARD A BIAS FOR RAISING RATES THE TREASURY'S 1575 BILLION TWOYEAR NOTE OFFERING ATTRACTED AGRESSIVE BIDDING GIVEN THE TREMENDOUS PRICE DECLINE THAT YOU'VE HAD IN THE LAST WEEK OR SO THE AUCTION WENT VERY WELL BETTER THAN WE HAD EXPECTED SAID CARY LEAHEY A SENIOR ECONOMIST AT LEHMAN GOVERNMENT SECURITIES INC THE TREASURY AWARDED THE TWOYEAR NOTES A YIELD OF 417 BELOW MARKET EXPECTATIONS FOR A 418 YIELD THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE AMOUNT OF BIDS TENDERED TO THE NUMBERS ACCEPTED WAS AN IMPRESSIVE 344TO1 NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT INTEREST FROM INVESTORS OUTSIDE OF WALL STREET WERE A BIT ON THE LOW SIDE AT 769 MILLION YESTERDAY'S RESULTS COMPARE WITH AN AVERAGE BIDTOCOVER RATIO OF 264TO1 OVER THE HISTORY OF THE PRIOR EIGHT DUTCH AUCTIONS AND AN AVERAGE 853 MILLION IN NONCOMPETITIVE BIDS WHILE THE TWOYEAR NOTE AUCTION LOOKED IMPRESSIVE ON THE SURFACE SOME ANALYSTS SAID THE RESULTS MASKED THE TRUE STORY INVESTOR INTEREST IN THE AUCTION WAS VERY LIGHT WITH THE BULK OF THE BIDDING BY WALL STREET PLAYERS WHO WERE LOOKING TO CLOSE OUT POSITIONS THROUGH THE AUCTION EVEN THOUGH IT WAS A WELLBID AUCTION IT WAS A LOSER SAID JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES THE RETAIL DEMAND DISAPPEARED AS WE WENT BELOW 420 THAT LEFT TRADERS WITH NO NEW BUYERS FOR THE TWOYEAR NOTES AFTER THE AUCTION AND PLAYERS SCRAMBLED TO UNLOAD THE SECURITIES WE WERE REARRANGING THE DECK CHAIRS ON THE TITANIC SAID MR KENNEY REFLECTING THE LACK OF FOLLOWTHROUGH BUYING THE YIELD ON THE WHENISSUED TWOYEAR NOTE ROSE TO 421 BY THE END OF TRADING YESTERDAY THE YIELD HAD FALLEN TO A LOW OF 415 SHORTLY AFTER THE RESULTS WERE RELEASED HELPING DRIVE PRICES SOUTH WERE REPORTED COMMENTS FROM FED CHAIRMAN ALAN GREENSPAN MR GREENSPAN SPEAKING IN DALLAS SAID THAT WHILE EMPLOYMENT HAS BEEN DEPRESSED BY RESTRUCTURING THE ECONOMY IS IN AN EARLY STAGE OF A MAJOR EXPANSION IN EMPLOYMENT MR GREENSPAN'S COMMENTS CAME AGAINST THE BACKDROP OF ANOTHER HEALTHY READING ON AUTO SALES AND PRICES WERE SENT LOWER AS TRADING DREW TO A CLOSE LEAVING MOST OF THE MARKET CLINGING TO ONLY SMALL GAINS THE AFTERNOON REVERSAL ERASED AN EARLY MOVE HIGHER THAT HAD BEEN CHALKED UP PARTIALLY IN RESPONSE TO FAVORABLE ECONOMIC DATA RELEASED DURING THE MORNING APRIL EXISTING HOME SALES WERE REPORTED UP A LESSTHANEXPECTED 27 WHILE THE CONFERENCE BOARD'S MAY CONSUMER CONFIDENCE REPORT SHOWED A STEEP DECLINE DURING THE AFTRNOON TRADERS BRUSHED ASIDE NEWS OF DECLINING RETAIL SALES THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN INC REPORTED CHAIN AND DEPARTMENT STORE SALES WERE DOWN 18 FOR THE THREE WEEKS ENDED MAY 22 THE MARKET IS NOW TRADING VERY DEFENSIVELY NOW THAT THEY FEEL THE FED HAS PUT THEM ON NOTICE WITH THE BIAS FOR TIGHTENING SAID FIRST CHICAGO'S MR JOHNSON THE MARKET IS REACTING MORE STRONGLY TO BEARISH INDICATIONS THAN TO BULLISH NEWS TRADERS STILL HAVE MORE SUPPLY TO CONTEND WITH WITH THE TREASURY SLATED TO SELL 11 BILLION IN FIVEYEAR NOTES TODAY PEOPLE ARE GOING TO BE A LITTLE MORE CAUTIOUS ABOUT THE FIVEYEAR AFTER THEIR EXPERIENCE WITH THE TWOYEAR SAID PRUDENTIAL'S MR KENNEY IN WHENISSUED TRADING LATE TUESDAY THE FIVEYEAR NOTE YIELDED 540 HERE ARE THE RESULTS OF THE TWOYEAR NOTE AUCTION 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 1995 SECONDARY TRADING WAS LISTLESS WITH TRADERS AND INVESTORS ALIKE COMPLAINING ABOUT THE SLOW VOLUME BOTH GROUPS AGREED THAT TRADING ISN'T LIKELY TO PICK UP UNTIL AFTER THE MEMORIAL DAY HOLIDAY INVESTMENTGRADE ISSUES ENDED LITTLE CHANGED WITH LONGERDATED INDUSTRIALS GIVING UP MODEST GAINS SEEN EARLIER YESTERDAY AFTER THE DOLLAR DROPPED TO A POSTWORLD WAR II LOW AGAINST THE JAPANESE YEN RAISING INFLATIONARY FEARS JUNK BONDS ENDED FLAT IN LIGHT VOLUME AMONG THE FEW ACTIVE SECONDARY ISSUES AMERICAN STANDARD INC'S TWO JUNK ISSUES PRICED MONDAY WERE QUOTED UP ABOUT 3/4 BY TRADERS AMONG NEW ISSUES IN THE JUNK BOND MARKET ACME HOLDINGS INC PLACED 78 MILLION OF SEVENYEAR SENIOR NOTES THROUGH CITICORP SECURITIES MARKETS INC NONCALLABLE FOR FIVE YEARS THE NOTES WERE PRICED AS 1175 SECURITIES TO YIELD 11875 THE ISSUE IS RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE DEAL HAD BEEN TARGETED TO YIELD BETWEEN 115 AND 1175 BANKERS SAID MEANWHILE ISSUANCE OF NEW PREFERRED STOCK CONTINUED AT A STEADY CLIP MORE THAN 600 MILLION OF NEW PREFERRED HAS BEEN PRICED SINCE MONDAY DURING YESTERDAY'S SESSION BANKERS TRUST NEW YORK CORP AND CLEVELAND ELECTRIC ILLUMINATING CO A UNIT OF CENTERIOR ENERGY CORP OFFERED NEW PREFERRED STOCK ON MONDAY CITICORP RAISED 325 MILLION OF DEPOSITARY PREFERRED TODAY INTERNATIONAL BUSINESS MACHINES CORP IS EXPECTED TO OFFER 750 MILLION OF PREFERRED STOCK BUYERS RETURNED TO THE MUNICIPAL BOND MARKET BOOSTING PRICES OF ACTIVELY TRADED ISSUES BY 1/8 TO 3/8 POINT AS INFLATION CONCERNS MOVED TO THE BACK BURNER IN LATE TRADING CHICAGO'S 5625 EMERGENCY TELEPHONE SYSTEM REVENUE BONDS OF 2023 WERE 3/8 HIGHER AT 94 7/8 TO YIELD 597 THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY'S 550 REVENUE REFUNDING BONDS OF 2021 ROSE 1/8 TO 94 7/8 TO YIELD 584 MUNI PRICES HAVE FALLEN SUBSTANTIALLY IN RECENT WEEKS DUE TO A LEAP IN GOLD PRICES AND OTHER SIGNS OF RISING INFLATIONARY PRESSURES TWO WEEKS AGO BIDS FOR BOTH THE CHICAGO AND SOUTH CAROLINA BONDS WERE AROUND 96 1/2 THE YIELD RISE CAUSED BY THAT MARKET DECLINE CONTINUES TO HOLD DOWN ISSUANCE VERY LITTLE SUPPLY WAS PRICED MONDAY AND ONLY ABOUT 1 BILLION OF SECURITIES WERE OFFERED YESTERDAY TUESDAY IS USUALLY THE WEEK'S MOST HECTIC PRICING DAY AND IT'S NOT UNUSUAL FOR AT LEAST 2 BILLION OF DEBT TO BE BROUGHT TO THE MARKET THE REFUNDING SECURITIES THAT HAVE DOMINATED SUPPLY RECENTLY WILL PROBABLY BE LESS NUMEROUS AS LONG AS THE YIELD FOR THE TREASURY'S BELLWETHER 30YEAR BOND REMAINS AROUND 700 SAYS A NEW YORK MUNI SPECIALIST IF THE YIELD WERE TO MOVE BACK DOWN TOWARD 670 THAT WOULD TRIGGER PRICINGS OF REFUNDING BONDS THAT ARE ON THE SHELF HE ADDS PRICES OF CURRENTCOUPON MORTGAGE SECURITIES CLOSED HIGHER AS GENERAL MOTORS ACCEPTANCE CORP AND FIRST CHICAGO CORP BROUGHT NEARLY 3 BILLION IN ASSETBACKED ISSUES TO MARKET IN OTHER NEWS IN THE MORTGAGEBACKED MARKET THE PUBLIC SECURITIES ASSOCIATION ANNOUNCED A NEW STANDARD FOR ANALYSIS OF NONAGENCY MORTGAGEBACKED SECURITIES AND THE PRIMARY MARKET SAW THE ISSUANCE OF THREE REAL ESTATE MORTGAGE INVESTMENT CONDUITS TOTALING 135 BILLION A 195 BILLION GMAC AUTO RECEIVABLES DEAL WAS BROUGHT BY FIRST BOSTON GMAC IS A UNIT OF GENERAL MOTORS CORP IN ADDITION FIRST CHICAGO OFFERED A 1 BILLION CREDITCARD CERTIFICATE DEAL IN TWO PARTS IN SECONDARY TRADING OF 7 AGENCY SECURITIES FOR JUNE DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 3/32 HIGHER AT 99 26/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED 4/32 HIGHER AT 100 4/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 5/32 HIGHER AT 100 1/32 THE THREE NEW REMICS WERE BACKED BY FANNIE MAE'S 30YEAR 7 20YEAR 7 AND 15YEAR 65 SECURITIES THE NEW STANDARDS ISSUED BY THE PSA ALLOW FOR STANDARD DISCLOSURE OF DEFAULT RATE ASSUMPTIONS 9305260046 930526 VANCOUVER EXCHANGE SETS POLICY CHANGES IN EFFORT TO REFORM VANCOUVER BRITISH COLUMBIA IN AN EFFORT TO CLEAN UP ITS TARNISHED IMAGE THE VANCOUVER STOCK EXCHANGE ANNOUNCED SEVERAL POLICY CHANGES COVERING ITS MEMBER FIRMS THE NEW MEASURES COME LESS THAN TWO WEEKS AFTER THE GOVERNMENT OF BRITISH COLUMBIA SAID IT SET UP AN INQUIRY INTO THE OPERATIONS OF THE EXCHANGE WHICH HAS BEEN PLAGUED BY ITS REPUTATION AS A HAVEN FOR PENNYSTOCK SCANDALS BUT PLANNING OF THE NEW RULES WAS UNDER WAY SIX MONTHS AGO WELL BEFORE THE PROVINCIAL GOVERNMENT LET THE EXCHANGE KNOW IT WAS CONSIDERING AN INVESTIGATION SAID DAVID LAUNDY THE VSE'S SPOKESMAN THE POLICY CHANGES ARE ADDRESSING THOSE AREAS THAT HAD ELICITED CRITICISMS FROM INVESTORS HE SAID FOR EXAMPLE EFFECTIVE TODAY A MINIMUM OF 85 OF ANY PUBLIC OFFERING MUST BE MADE AVAILABLE TO THE PUBLIC FIRST THAT RULE IS AIMED AT LIMITING THE EXTENT OF PARTICIPATION OF BROKERS IN NEW OFFERINGS MR LAUNDY SAID ALSO EFFECTIVE TODAY BROKERS ACTING AS A PRINCIPAL OR ON BEHALF OF CLIENTS WILL BE PROHIBITED FROM BUYING NEWLY ISSUED SHARES TO COVER A PREVIOUS SHORT SALE SHORT SELLERS SELL BORROWED STOCK AND MAKE A PROFIT BY REPLACING IT WHEN THE STOCK'S PRICE DECLINES THE VSE ALSO SAID IT PLANS TO MAKE SEVERAL OTHER POLICY CHANGES IN THE NEAR FUTURE INCLUDING MAKING LISTING STANDARDS ON ITS SENIOR BOARD SUBSTANTIALLY SIMILAR TO THOSE OF THE TORONTO STOCK EXCHANGE JOHN WOODS EDITOR OF VANCOUVER STOCKWATCH AN INDUSTRY NEWS SERVICE SAID THE LATEST PROPOSALS MEAN LESS OF THE PIE GOING TO THE MEMBERS AND MORE GOING TO INVESTORS IN VSELISTED COMPANIES 9305260045 930526 BUSINESS BRIEF PUBLIC SERVICE CO SOME GENERATING CAPACITY TO BE SOLD FOR 379 MILLION PUBLIC SERVICE CO OF NEW MEXICO ALBUQUERQUE SAID IT WILL SELL AT LEAST 33 MEGAWATTS OF GENERATING CAPACITY OF ONE OF ITS POWER STATIONS TO UTAH MUNICIPAL POWER SYSTEMS SALT LAKE CITY FOR 379 MILLION COMPLETION OF THE SALE ISN'T EXPECTED BEFORE THE FOURTH QUARTER THE AGREEMENT INCLUDES AN OPTION TO PURCHASE AN ADDITIONAL SEVEN MEGAWATTS AT THE COMPANY'S ANNUAL MEETING YESTERDAY JOHN ACKERMAN PRESIDENT SAID THE UTILITY WAS PREPARING A FILING TO THE STATE'S PUBLIC SERVICE COMMISSION THE UTILITY WANTS TO LOWER RATES IN PART AS A RESULT OF EXPECTED ANNUAL SAVINGS OF 25 MILLION FROM A REORGANIZATION THE FILING WILL ALSO ADDRESS THE DISTRIBUTION TO SHAREHOLDERS OF ANY PROCEEDS FROM SALES OF GENERATING CAPACITY WHICH HAD BEEN EXCLUDED FROM RATES BY REGULATORS CONCERNING THE REINSTATEMENT OF THE DIVIDEND WHICH WAS SUSPENDED IN 1989 MR ACKERMAN SAID ASSET SALES MUST BE COMPLETED BEFORE A SUSTAINABLE DIVIDEND COULD BE PAID 9305260044 930526 RULE OF LAW ENVIRONMENTAL FEAR AND THE COURTS BY MARTHA A CHURCHILL A CALIFORNIA JURY DECIDED A FEW WEEKS AGO THAT AN ELECTRIC UTILITY WAS NOT RESPONSIBLE FOR A LITTLE GIRL'S BIRTH DEFECTS THE CHILD'S PARENTS TED AND MICHELE ZUIDEMA CLAIMED THAT THEIR DAUGHTER'S RARE CONGENITAL CONDITION HAD BEEN CAUSED BY AN ELECTROMAGNETIC FIELD OR EMF PRODUCED BY A POWER LINE NEAR THEIR HOME MANY OTHER COMPANIES AREN'T AS LUCKY AS THE UTILITY IN THE ZUIDEMA CASE PLAINTIFFS' ATTORNEYS ACROSS THE COUNTRY ARE EXPLORING AND PROMOTING A WIDE VARIETY OF SUCH FEAR LAWSUITS TO TAKE THE PLACE OF THE OLD ASBESTOS CASES ASBESTOS DEFENDANTS GRADUALLY HAVE BEEN GOING BANKRUPT SO THE PLAINTIFFS' ATTORNEYS ARE LOOKING ELSEWHERE FOR NEWER AND DEEPER POCKETS ENVIRONMENTAL FEAR IS LUCRATIVE BUSINESS FOR THE LEGAL INDUSTRY THE ZUIDEMA CASE FAILED BUT IT DID MANAGE TO REACH A JURY WITHOUT BEING THROWN OUT BY A JUDGE MANY CASES LIKE IT ARE PENDING IT'S JUST A QUESTION OF TIME BEFORE A JURY WILL OPEN THE GATES FOR EMF SICK BUILDING SYNDROME OR ONE OF THE OTHER HORROR MOVIES THAT HAPPENS TO BE PLAYING IN THE LOCAL MEDIA SO LONG AS COURTS CONTINUE TO PROVIDE WIDE ACCESS TO TECHNOPHOBIC LAWSUITS EACH JURY TRIAL WILL BE A NEW CRAP SHOOT JUDGES ARE ALLOWING UNFOUNDED FEAR LAWSUITS TO PROCEED TO JURIES IN THE MISGUIDED BELIEF THAT PEOPLE WHO ARE HONESTLY AFRAID OF SOMETHING OUGHT TO BE COMPENSATED FOR THAT GENUINE FEAR SUCH FRIVOLOUS ENVIRONMENTAL LAWSUITS WOULD BE WEEDED OUT IF JUDGES ROUTINELY REQUIRED PROOF OF A RATIONAL BASIS FOR FEAR LAST YEAR MICHIGAN TOOK THAT STEP IN ADKINS V THOMAS SOLVENTS IN WHICH GROUNDWATER POLLUTION AFFECTED REAL ESTATE VALUES IN BATTLE CREEK THE PLAINTIFFS LIVED WELL OUTSIDE THE CONTAMINATED AREA BUT SUED FOR LOST PROPERTY VALUES BECAUSE IGNORANT BUYERS GAVE THEM THE COLD SHOULDER MISTAKEN OPINIONS ARE NOT A VALID BASIS FOR LEGAL DAMAGES THE COURT RULED THE SAME PRINCIPLE WAS APPLIED LAST FALL IN A CASE IN NEW YORK STATE WHEN THE STATE PUT UP NEW HIGHPOWER LINES IN HAMPTONBURGH LONG ISLAND NEARBY RESIDENTS DEMANDED COMPENSATION ON THE GROUNDS THAT THEIR PROPERTY HAD BEEN DEVALUED BECAUSE POTENTIAL BUYERS FEARED THAT THE POWER LINES MIGHT CAUSE CANCER THE COURT REFERRING TO THE COMMUNITY'S CANCERPHOBIA REFUSED TO ALLOW DAMAGES FOR THE MISPERCEPTIONS THESE ARE THE HOPEFUL SIGNS THERE ARE HOWEVER STILL PLENTY OF JUDGES WHO SEE THINGS DIFFERENTLY IN THE MICHIGAN CASE CITED ABOVE FOR EXAMPLE WHILE THE STATE SUPREME COURT REFUSED TO ALLOW A LAWSUIT FOR BASELESS ENVIRONMENTAL FEAR IT WAS A CLOSE CALL TWO JUDGES WROTE THAT EMOTIONALLY JUSTIFIED FEAR IN THE COMMUNITY SHOULD BE RECOGNIZED A SIMILAR ARGUMENT PREVAILED IN MARYLAND IN 1986 IN EXXON V YAREMA HOMEOWNERS SUED A GAS STATION FOR GASOLINE LEAKS INTO THE GROUNDWATER THOSE WHOSE HOMES WERE NOT AFFECTED BY THE POLLUTION WERE ALLOWED TO COLLECT DAMAGES ON THE GROUNDS THAT THE QUESTION WAS WHETHER THE HOMEOWNERS WERE AFRAID NOT WHETHER THEY HAD ANY REASON TO BE IN REACHING THEIR DECISIONS BOTH THE DISSENTING MICHIGAN JUDGES AND THE MARYLAND SUPREME COURT RELIED HEAVILY ON A 1898 CASE CALLED BALTIMORE V FAIRFIELD THIS CASE IS A REGULAR STANDBY FOR HYSTERICAL ENVIRONMENTAL PLAINTIFFS AND IT'S AN INDICATION THAT ENVIRONMENTAL HYSTERIA IS NOTHING NEW TO OUR LEGAL SYSTEM IN THAT CASE A WOMAN WITH LEPROSY WANTED TO LIVE IN BALTIMORE BUT THE NEIGHBORS REGARDED HER PRESENCE AS AN ENVIRONMENTAL THREAT SHE WAS CONSIDERED DANGEROUS BECAUSE THE IDEA OF LEPROSY WOULD AFFECT PROPERTY VALUES NOT BECAUSE HER DISEASE WOULD BE CONTAGIOUS THE MARYLAND SUPREME COURT REALIZED THAT THE WOMAN WITH LEPROSY POSED NO ACTUAL HEALTH THREAT BUT GRANTED AN INJUNCTION AGAINST HER SOLELY BECAUSE OF THE PUBLIC REACTION TO HER DISEASE MERE SCIENTIFIC ASSEVERATION IS OF NO CONSEQUENCE THE COURT CONCLUDED PUBLIC HYSTERIA IS DEEP SEATED AND THEREFORE LEGITIMATE NO MATTER WHAT THE EXPERTS SAY IN ALLOWING THE ZUIDEMAS' EMF CLAIM TO GO TO A JURY IN CALIFORNIA THE JUDGE WAS FOLLOWING THE SAME LINE OF REASONING EXPRESSED IN THE LEPROSY CASE MAINSTREAM SCIENTISTS HAVE PRODUCED NO HARD EVIDENCE THAT EMF CAUSES BIRTH DEFECTS BUT SOME MEMBERS OF THE PUBLIC NEVERTHELESS BELIEVE IN THE SUPPOSED DANGER IN OTHER WORDS REALITY TAKES A BACK SEAT PERCEPTION IS EVERYTHING DEEPSEATED ENVIRONMENTAL FEARS ALSO PLAYED A PART A FEW YEARS AGO IN AN ILLINOIS CASE IN WHICH A JUDGE PRESIDED OVER A JURY TRIAL THAT DRAGGED ON FOR 3 1/2 YEARS JUST BECAUSE A TEASPOON OR SO OF DIOXIN WAS RELEASED INTO THE SOIL IN 1987 THE JURY FOUND NO REAL DAMAGE OR INJURY BUT NEVERTHELESS AWARDED 16 MILLION BECAUSE THE IDEA OF DIOXIN WAS ABOUT AS APPEALING AS LEPROSY THE CASE KEMNER V MONSANTO WAS LATER REVERSED BY THE ILLINOIS APPELLATE COURT THE DEFENDANT WASN'T SO LUCKY IN A SIMILAR CASE IN OHIO IN 1989 RESIDENTS NEAR THE FEED MATERIALS PRODUCTION CENTER IN FERNALD WERE PERFECTLY HEALTHY BUT ACCORDING TO THEIR ATTORNEYS THEY WORRIED THAT THEY MIGHT GET CANCER FROM EXTREMELY LOW LEVELS OF RADIATION HEALTHY RESIDENTS RECEIVED A 78 MILLION SETTLEMENT IN THESE AND OTHER CASES CREATIVE PLAINTIFFS' ATTORNEYS ARE CLAIMING MASSIVE ENVIRONMENTAL DAMAGES FEATURING A FEARFUL PUBLIC FACED WITH UNKNOWN AND UNPROVEN PERILS IT IS IMPOSSIBLE OF COURSE TO PROVE ANYTHING IS COMPLETELY SAFE SO SOME COURTS GIVE THE HYSTERICS THE BENEFIT OF THE DOUBT IF IT IS POSSIBLE THAT A DANGER EXISTS AND EVERYTHING IS POSSIBLE OF COURSE THEN WHY NOT ALLOW COMPENSATION FOR FEAR OF EVERY POTENTIAL DANGER AND WHO CARES WHAT IT COSTS AMERICA CANNOT COMPETE IN THE WORLD MARKET WHILE OUR COURTS ENTERTAIN ENVIRONMENTAL LAWSUITS BASED ON WHATEVER HITS THE TV NEWS IF JUDGES WOULD STOP ACCEPTING THOSE CASES THE DEMOCRATIC SYSTEM MIGHT KICK INTO GEAR CITIZENS WOULD HAVE TO OBTAIN FASTER AND MORE COSTEFFECTIVE SOLUTIONS THROUGH NORMAL POLITICAL CHANNELS INSTEAD OF BRINGING LAWSUITS PEOPLE WOULD HAVE TO WRITE THEIR SENATORS ORGANIZE TOWN MEETINGS AND CIRCULATE PETITIONS ENVIRONMENTAL CONCERNS ABOUT UNPROVEN DANGERS ARE ESSENTIALLY A POLITICAL PROBLEM DESPITE PUBLIC PRESSURE ON THE COURTS TO SOLVE ALL OF SOCIETY'S ILLS JUDGES WOULD DO WELL TO EXERCISE A LITTLE SELFRESTRAINT THE PUBLIC IS FACED WITH A MULTITUDE OF POTENTIAL ENVIRONMENTAL RISKS FROM OUR AIR WATER SOIL AND FOOD SUPPLY LET THE COURTS CONCENTRATE ON THE KNOWN PROBLEMS AND LET THE SCIENTIFIC COMMUNITY WORRY ABOUT SOLVING THE UNKNOWNS MS CHURCHILL IS PRESIDENT OF THE MIDAMERICA LEGAL FOUNDATION IN CHICAGO 9305260043 930526 COMMODITIES WHEAT PRICES FALL AFTER US IS REPORTED TO BALK AT PROPOSED EXPORT SUBSIDIES AGAINST CANADA BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO WHEAT PRICES SANK IN THE WAKE OF REPORTS THAT THE CLINTON ADMINISTRATION IS BALKING AT A PROPOSAL TO DEPLOY WHEAT EXPORT SUBSIDIES AGAINST CANADA IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOFT RED WINTER WHEAT CONTRACT FOR JULY DELIVERY SANK 475 CENTS A BUSHEL TO SETTLE AT A LIFEOFCONTRACT LOW OF 28875 A BUSHEL THE HARD RED WINTER WHEAT CONTRACT FOR JULY DELIVERY AT THE KANSAS CITY BOARD OF TRADE DROPPED 65 CENTS A BUSHEL TO SETTLE AT 291 A BUSHEL OFFICIALS AT THE AGRICULTURE DEPARTMENT HAVE BEEN QUIETLY CAMPAIGNING TO EXPAND THE MISSION OF THE EXPORT ENHANCEMENT PROGRAM WHICH WAS CREATED IN THE WAKE OF THE 1980S FARM CRISIS TO COUNTER A RISING TIDE OF SUBSIDIZED GRAIN EXPORTS FROM THE EUROPEAN COMMUNITY UNDER THE PROGRAM THE US GOVERNMENT COMPENSATES EXPORTERS WHO SELL US GRAIN AT A DISCOUNT TO TARGETED NATIONS THAT MIGHT OTHERWISE IMPORT EC COMMODITIES SEVERAL FARM GROUPS ARE PRESSING THE AGRICULTURE DEPARTMENT TO USE THE EXPORTSUBSIDY PROGRAM TO COUNTER CANADIAN GRAIN EXPORTS TO MEXICO AMONG OTHER NATIONS US WHEAT FARMERS ALSO ARE ANGRY THAT CANADIAN BARLEY IS FLOODING INTO THE NORTHERN PLAINS IN ORDER TO COUNTER CANADA SAY TRADE SOURCES THE AGRICULTURE DEPARTMENT EARLIER THIS WEEK PROPOSED EXPANDING THE ANNUAL EXPORTSUBSIDY PROGRAM TO AS MUCH AS 36 MILLION METRIC TONS OR 132 BILLION BUSHELS OF WHEAT COMPARED WITH THE BUSH ADMINISTRATION'S LAST PACKAGE OF ABOUT 30 MILLION METRIC TONS BUT OFFICIALS OF THE STATE DEPARTMENT AND OFFICE OF MANAGEMENT AND BUDGET APPARENTLY ARE COMPLAINING THAT A WHEAT SKIRMISH WITH CANADA MIGHT JEOPARDIZE THE NORTH AMERICAN FREE TRADE AGREEMENT CONGRESS IS EXPECTED TO VOTE ON THE TRADE PACT IN THE FALL GRAIN TRADERS SAID THE OBJECTIONS MIGHT DELAY A DECISION ABOUT HOW TO DEPLOY THE ANNUAL EXPORTSUBSIDY PROGRAM BY A FEW WEEKS TO A FEW MONTHS WHEAT PRICES FELL IN PART BECAUSE US WHEAT EXPORTS ARE HEAVILY DEPENDENT ON SUBSIDIES AND FARMERS ARE PREPARING TO HARVEST A BUMPER WINTER WHEAT CROP IN THE SOUTHERN PLAINS THE BUSH ADMINISTRATION UNVEILED ITS OFFER OF SUBSIDIZED WHEAT TO 28 NATIONS SEVERAL WEEKS BEFORE THE 1992 PRESIDENTIAL ELECTION IN HOPES OF SOLIDIFYING SUPPORT AMONG US FARMERS BUT THE ELIGIBLE NATIONS HAVE BOUGHT ONLY ABOUT 55 OF THE DISCOUNTPRICED GRAIN AND THE OFFER IS SLATED TO EXPIRE JUNE 30 SAID DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO CHICAGO CORN PRICES SKIDDED AS FORECASTS FOR NORMAL PRECIPITATION ACROSS THE MIDWEST INCREASED THE CHANCES THAT FARMERS WILL PLANT ABOUT 90 OF THE CROP BY MEMORIAL DAY SAID JOHN KLEIST DIRECTOR OF AGRICULTURAL RESEARCH AT QUANTUM FINANCIAL SERVICES INC CHICAGO MIDWEST FARMERS GENERALLY MUST PLANT CORN BY EARLY JUNE FOR THE CROP TO MATURE BY THE FIRST KILLING FROST OF FALL AN UNUSUALLY WET SPRING ACROSS THE MIDWEST DELAYED THE PLANTING SEASON BY UP TO A MONTH IN SOME AREAS BUT PLANTING SURGED IN THE PAST WEEK WITH A BREAK IN THE WEATHER IF THE DRIER WEATHER HOLDS GRAIN ANALYSTS ARE EXPECTED TO STICK WITH THEIR FORECASTS FOR A US CORN HARVEST BETWEEN 8 BILLION AND 84 BILLION BUSHELS IN OTHER COMMODITY MARKETS YESTERDAY COFFEE COFFEE FUTURES PRICES REBOUNDED AFTER A SHARP DECLINE MONDAY THE PRICE BREAK DURING MONDAY'S SESSION AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE DIDN'T CONTINUE LATER IN LONDON ANALYSTS SAID AS A RESULT THE NEW YORK MARKET OPENED FIRM IT LATER RALLIED ON NEWS OF AN EXPORTLIMITING AGREEMENT AMONG BRAZIL AND COLOMBIA THE WORLD'S BIGGEST COFFEE PRODUCERS AND CENTRAL AMERICAN COUNTRIES THAT ALSO EXPORT COFFEE THE AGREEMENT CALLS FOR COUNTRIES IN CENTRAL AMERICA TO WITHHOLD 15 OF THE COFFEE THEY PRODUCE FROM THE EXPORT MARKET IF ADHERED TO THIS WOULD BE QUITE CONSTRUCTIVE FOR THE MARKET SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE PROBLEM IS THAT IT'S HARD TO POLICE AND MONITOR THESE AGREEMENTS AND THAT USUALLY CREATES A PROBLEM ONE NEGATIVE FACTOR THAT MAY LIMIT THE UPSIDE POTENTIAL OF COFFEE PRICES IS THE HIGH LEVEL OF COFFEE STOCKS IN LARGE COFFEECONSUMING NATIONS SUCH AS THE US US STOCKS ARE NOW AT 10 MILLION BAGS OF COFFEE COFFEE FOR JULY DELIVERY ROSE 205 CENTS TO SETTLE AT 6350 CENTS A POUND ENERGY CRUDE OIL PETROLEUM PRODUCT AND NATURAL GAS PRICES ROSE IN FEATURELESS TRADING MARKET PARTICIPANTS SAID THERE WASN'T ANY FUNDAMENTAL NEWS TO SPUR THEM IN EITHER DIRECTION CRUDE OIL FOR JULY DELIVERY ADVANCED 18 CENTS A BARREL TO SETTLE AT 1990 ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL SHOWED MORE STRENGTH THAN GASOLINE WHICH IS UNUSUAL FOR THIS TIME OF YEAR NORMALLY GASOLINE PRICES RISE STRONGLY AHEAD OF THE SUMMER DRIVING SEASON MARKED BY THE MEMORIAL DAY HOLIDAY WEEKEND JUNE HEATING OIL SETTLED AT 5426 CENTS A GALLON UP 036 CENT JUNE GASOLINE ROSE 019 CENT TO 5892 CENTS NATURAL GAS PRICES ROSE IN MODERATE TRADING AGAIN WITHOUT ANY SPECIFIC FUNDAMENTAL NEWS THE JULY CONTRACT SETTLED AT 2084 PER MILLION BRITISH THERMAL UNITS UP 75 CENTS A MILLION BTUS IS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET OF NATURAL GAS 9305260042 930526 PEPPERAND SALT HAVE TURNED ME INTO DEFICITIZEN DO MY EYEBROWS FLOURISH 9305260041 930526 BUSINESS BRIEF AMERICAN STORES CO FIRSTQUARTER PROFIT ROSE MAINLY ON ONETIME ITEMS AMERICAN STORES CO SAID EARNINGS SOARED TO 415 MILLION IN THE FIRST QUARTER ENDED MAY 1 FROM 183 MILLION MAINLY FROM AN ACCOUNTING CHANGE AND OTHER NONRECURRING ITEMS AMERICAN STORES WHICH OPERATES 1676 FOOD AND DRUGSTORES IN 27 STATES SAID EARNINGS EQUALED 59 CENTS A SHARE COMPARED WITH 26 CENTS A SHARE A YEAR AGO THE SALT LAKE CITY COMPANY SAID ITS FIRSTQUARTER EARNINGS INCLUDED A 457 MILLION GAIN FROM SETTLEMENT OF LITIGATION AND CHARGES OF 25 MILLION FOR DEBT RESTRUCTURING AND 136 MILLION FROM MISCELLANEOUS ITEMS THE YEARAGO RESULTS INCLUDE A CHARGE OF 138 MILLION FROM ASSET SALES BEFORE THE NONRECURRING ITEMS EARNINGS ROSE 16 TO 372 MILLION OR 53 CENTS A SHARE FROM 32 MILLION OR 46 CENTS A SHAREA YEAR AGO THE RETAILER'S FIRSTQUARTER SALES WERE 467 BILLION COMPARED WITH SALES OF 492 BILLION IN THE YEARAGO QUARTER THE YEAREARLIER SALES INCLUDED 74 JEWEL OSCO STORES SOLD IN APRIL 1992 SALES FOR STORES THAT HAVE BEEN OPEN AT LEAST ONE YEAR DROPPED SLIGHTLY DURING THE FIRST QUARTER 9305260040 930526 BUSINESS BRIEF MAGELLAN PETROLEUM CORP COMPANY'S DIRECTORS REJECT OFFER BY SAGASCO HOLDINGS MAGELLAN PETROLEUM CORP DIRECTORS REJECTED WHAT THE HARTFORD CONN COMPANY TERMED THE UNSOLICITED HOSTILE TAKEOVER ATTEMPT BY SAGASCO HOLDINGS LTD OF AUSTRALIA SAGASCO ON MAY 13 BEGAN A TENDER OFFER OF 150 A SHARE FOR MAGELLAN VALUING THE COMPANY AT 37 MILLION THE OFFER IS CONDITIONAL ON SAGASCO'S RECEIVING TENDERS FOR AT LEAST 90 OF THE SHARES BEFORE THE OFFER SAGASCO HELD ABOUT 136 OF MAGELLAN'S 244 MILLION SHARES OUTSTANDING MAGELLAN IS AN OIL AND GAS COMPANY WITH INTERESTS IN CANADA AND AUSTRALIA THE BOARD STRONGLY RECOMMENDED THAT ITS STOCKHOLDERS REJECT THE OFFER MAGELLAN SAID SPEAKING FOR THE BOARD DIRECTOR JAMES R JOYCE SAID JUST LAST SEPTEMBER SAGASCO PAID THE EQUIVALENT OF 183 PER SHARE FOR A MINORITY INTEREST IN THE COMPANY AND NOW IT IS OFFERING ONLY 150 PER SHARE FOR THE ENTIRE COMPANY 9305260039 930526 MEDICINE BLUE CROSS CUTS SPECIALISTS' FEES IN CALIFORNIA BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES AFTER YEARS OF YIELDING TO ESCALATING MEDICAL COSTS ONE OF THE NATION'S LARGEST MANAGEDHEALTHCARE NETWORKS IS ABRUPTLY TURNING TOUGH CLIPPING SPECIALISTS' FEES ACROSS THE BOARD BLUE CROSS OF CALIFORNIA IS INSTITUTING A BROAD COSTCUTTING PLAN THAT SHRINKS BY BETWEEN 5 AND 6 ITS PAYMENTS FOR VARIOUS SURGICAL OBSTETRICAL AND OTHER SPECIALTY PROCEDURES THE MOVE COMES AS A SURPRISE TO SOME HEALTHCARE OBSERVERS BUT THEY SAY IT COULD LEAD TO WIDESPREAD ATTEMPTS ELSEWHERE TO SLASH DOCTOR BILLS THE LOWER FEES WHICH ARE RETROACTIVE TO MAY 1 AFFECT ABOUT 40 OF THE 34400 PHYSICIANS UNDER CONTRACT WITH BLUE CROSS'S PRUDENT BUYER PLAN A PREFERREDPROVIDER ORGANIZATION WITH 18 MILLION MEMBERS ACROSS CALIFORNIA PPOS ARE AN ARRANGEMENT UNDER WHICH AN EMPLOYER OR INSURANCE COMPANY NEGOTIATES DISCOUNTED FEES WITH DOCTORS AND HOSPITALS IN RETURN FOR DELIVERING A LARGE NUMBER OF PATIENTS THE MOVE IS ONE OF THE BOLDEST AND MOST VISIBLE COSTCUTTING EFFORTS SO FAR BY A HEALTHINSURANCE CONCERN AND IS SURE TO DEEPEN DOCTORS' FEARS ABOUT WHAT THE FUTURE HOLDS FOR THEM UNDER MANAGED CARE WHILE MOST INSURERS HAVE TRIED TO HOLD THE LINE ON FEES OR HAVE ALLOWED MINIMAL INCREASES REDUCTIONS ARE RARE OUTSIDE OF GOVERNMENT PROGRAMS SOME OTHER BLUE CROSS PLANS HAVE CUT SPECIALISTS' COMPENSATION BY SWITCHING TO MEDICARELIKE PAYMENT SYSTEMS BUT THE MONEY SAVED WAS USED TO INCREASE PRIMARYCARE FEES SUCH BUDGET NEUTRAL CHANGES DON'T GO AS FAR AS THE BLUE CROSS CALIFORNIA PPO WHICH IS FREEZING FEES FOR GENERALISTS WHILE REDUCING THEM FOR SPECIALISTS I HAVEN'T HEARD OF ANYBODY CUTTING FEES OVERALL SO FAR I THINK THAT IS PRETTY GROUNDBREAKING SAYS LEE N NEWCOMER NATIONAL MEDICAL DIRECTOR AT UNITED HEALTHCARE CORP A MINNEAPOLISBASED MANAGEDCARE COMPANY BLUE CROSS SAYS ITS COST CONTAINMENT PACKAGE IS NEEDED TO PRESERVE THE BEST FEATURES OF OUR CURRENT SYSTEM IN THE HOTLY COMPETITIVE CALIFORNIA MARKET DAVID CHERNOF BLUE CROSS'S MEDICAL DIRECTOR ADDS THAT THE COMPANY WAS FORCED TO ACT NOW BECAUSE ITS RATE OF ANNUALIZED COST INCREASES FOR INOFFICE PHYSICIAN SERVICES HAS NEARLY QUADRUPLED SINCE LATE 1991 TO AN EYEPOPPING 16 IT COULD BE MONTHS OR EVEN THE END OF THE YEAR BEFORE WE RECEIVE ANY CLOSURE ON THE CLINTON ADMINISTRATION'S HEALTHCAREREFORM PLAN DR CHERNOF ADDS THAT'S TOO LONG TO WAIT DOCTORS AREN'T THE ONLY ONES AFFECTED BY THE MEDICALCOST SQUEEZE AT BLUE CROSS OF CALIFORNIA AFTER TWO YEARS OF KEEPING ITS CHARGES STABLE BLUE CROSS HAS JUST ANNOUNCED AN AVERAGE 6 ACROSSTHEBOARD PREMIUMRATE INCREASE FOR ITS PRUDENT BUYER CUSTOMERS WHO INCLUDE INDIVIDUALS AS WELL AS SMALL AND LARGE EMPLOYERS BY ALTERING ITS PAYMENT STRUCTURE BLUE CROSS ALSO IS SEEKING TO MODIFY THE WAY ITS CUSTOMERS GET HEALTH CARE DR CHERNOF SAYS THE PHYSICIAN FEE RESTRUCTURING WAS MAINLY AIMED AT SPECIALISTS BECAUSE WE FRANKLY BELIEVE THAT A LARGER PROPORTION OF CARE SHOULD BE DELIVERED BY FAMILY PHYSICIANS PEDIATRICIANS AND OTHER DOCTORS IN THE PRIMARYCARE ENVIRONMENT BLUE CROSS FEE INCREASES TO SPECIALISTS OVER THE YEARS HAVE BEEN MORE GENEROUS THAN TO PRIMARYCARE PHYSICIANS HE ADDS THIS IS A LEVELING BLUE CROSS WHICH HASN'T PUBLICLY ANNOUNCED THE FEE CUTS IS GETTING THE WORD OUT THROUGH AN UNUSUAL FOURPAGE LETTER IT IS SENDING TO ALL ITS PPO DOCTORS ROUGHLY HALF OF ALL PRACTICING PHYSICIANS IN CALIFORNIA THE IMPACT ON EACH DOCTOR VARIES WIDELY DEPENDING ON HIS OR HER SPECIALTY BILLING PRACTICES AND NUMBER OF PATIENTS WHO ARE PRUDENT BUYER MEMBERS SOME PARTICIPATING PHYSICIANS HAVE CONTRACTS WITH A LARGE NUMBER OF OTHER NETWORKS CATEGORICALLY I AM UNHAPPY SAYS ROGER HOAG A BERKELEY CALIF OBSTETRICIAN I HAVEN'T PUT PENCIL TO PAPER YET TO KNOW EXACTLY WHAT IT ALL MEANS BUT I THINK THAT OTHER PLANS WILL FOLLOW SUIT THE CUTBACKS COME AT A TIME WHEN MEDICALOFFICE EXPENSES CONTINUE TO RISE ALONG WITH GENERAL INFLATION DR HOAG ADDS YOU DON'T SEE PLUMBERS OR ELECTRICIANS TAKING A CUT OBSTETRICIANS MAY BE ESPECIALLY HARD HIT BLUE CROSS SLASHED BY ABOUT 18 ITS PAYMENT FOR NEWBORN DELIVERIES BY CAESARIAN SECTION MAKING THE PAYMENTS EQUAL TO THOSE FOR NORMAL VAGINAL DELIVERIES THE CUTS WERE CUSHIONED SOMEWHAT BY AN ACROSSTHEBOARD 3 INCREASE FOR VAGINAL DELIVERIES THE PPO CALCULATES THAT THE PERCENTAGE OF ITS DOCTORS' DELIVERIES BY CSECTION IS IN THE HIGH20 RANGE VS THE NATIONAL AVERAGE OF ABOUT 23 A FIGURE THAT MANY OBSERVERS COMPLAIN IS STILL TOO HIGH THE DECISION TO PERFORM A CSECTION IS A COMPLICATED ONE BUT THE NEW PAYMENT SCHEME TAKES AWAY THE FINANCIAL INCENTIVE DR CHERNOF SAYS BLUE CROSS HOPES TO MAKE UP THE INCOME CUTS BY SENDING OBSTETRICIANS MORE PATIENTS I GUESS EVERYBODY HAS TO WORK A LITTLE HARDER FOR THEIR MONEY THAT'S NO DIFFERENT THAN IN OTHER AREAS OF THE US ECONOMY HE ADDS SOME IRATE DOCTORS QUESTION THE NEED FOR THE FEE CUTS CALLING THEM A MOVE BY BLUE CROSS TO LINE ITS OWN POCKET AT PHYSICIANS' EXPENSE I'M TIRED OF HEARING DOCTORS BLAMED ALL THE TIME FOR HIGHER HEALTHCARE COSTS SAYS NANETTE WUCHENICH A REDLANDS CALIF OBSTETRICIAN I THINK THE INSURANCE COMPANIES ARE JUST TRYING TO TAKE THE ATTENTION OFF THEIR GREED FOR THEIR OWN PROFITS INDEED THE FEE CUTS ARE PRACTICALLY A DECLARATION OF WAR ON THE CALIFORNIA MEDICAL ASSOCIATION WHICH ALREADY IS LEADING AN ATTACK ON BLUE CROSS'S JANUARY SALE OF A MINORITY STAKE IN ITS MANAGEDCARE UNIT BLUE CROSS RAISED 476 MILLION FROM ITS SALE TO THE PUBLIC OF A 175 STAKE IN THE UNIT WELLPOINT HEALTH NETWORKS INC WHICH NOW TRADES ON THE NEW YORK STOCK EXCHANGE THE FEE CUTS FROM BLUE CROSS ARE THE HEIGHT OF HYPOCRISY BECAUSE OF ITS ENORMOUS PROFITS AND REDUCED PERCENTAGE OF PREMIUM DOLLARS GOING FOR DIRECT CARE SAYS STEVE THOMPSON THE CMA'S VICE PRESIDENT GOVERNMENT RELATIONS IT ALL TRANSLATES INTO THE FACT THAT MWELLPOINT IS NOW PUBLICLY TRADED WHAT YOU SEE IS THE BLUE CROSS NAME BUT WHAT YOU GET IS A PRODUCT FROM WELLPOINT THE CMA IS PUSHING FOR A BILL PENDING IN THE CALIFORNIA LEGISLATURE THAT CHALLENGES ASPECTS OF BLUE CROSS'S WELLPOINT SALE BY KEEPING A MAJORITY STAKE IN THE UNIT BLUE CROSS SIDESTEPPED A CALIFORNIA LAW REQUIRING NONPROFIT ORGANIZATIONS TO MAKE CHARITABLE DONATIONS WHEN THEY CONVERT TO FORPROFIT STATUS DR CHERNOF DENIES ANY RELATION BETWEEN THE FEE CUTS AND THE WELLPOINT TRANSACTION 9305260038 930526 DELL STOCK LOSES QUARTER OF VALUE ON PROFIT DECLINE NET IN FISCAL FIRST PERIOD FELL AN UNEXPECTED 49 BUT SALES ROSE BY 84 BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP'S STOCK LOST NEARLY A QUARTER OF ITS VALUE AFTER THE COMPANY REVEALED THAT A DROP IN FISCAL FIRSTQUARTER EARNINGS WAS EVEN STEEPER THAN ANALYSTS HAD ANTICIPATED SHARES OF THE HIGHFLYING AUSTIN TEXAS PERSONALCOMPUTER MAKER PLUNGED 7375 TO 2475 IN NATIONAL OVERTHECOUNTER TRADING AFTER THE COMPANY SAID THAT EARNINGS FOR THE PERIOD ENDED MAY 2 DROPPED 49 TO 102 MILLION OR 25 CENTS A SHARE FROM 198 MILLION OR 52 CENTS A SHARE IN THE YEAREARLIER QUARTER DESPITE AN 84 GAIN IN SALES THE STOCK HAD ALREADY TAKEN A BEATING LAST WEEK WHEN THE COMPANY ANNOUNCED A DELAY IN THE EXPECTED RELEASE OF ITS EARNINGS ANALYSTS FEARED THEN THAT EARNINGS WERE HURT BY THE CONTINUING PRICE WAR AMONG PERSONALCOMPUTER MAKERS BUT THE EARNINGS DECLINE WAS STEEPER THAN ANYONE HAD PROJECTED AND WAS CAUSED THE COMPANY SAID PRIMARILY BY PROBLEMS WITH ITS TROUBLED NOTEBOOKCOMPUTER OPERATION ON THE RECOMMENDATION OF THE RECENTLY APPOINTED HEAD OF DELL'S PORTABLECOMPUTER DIVISION THE COMPANY TWO WEEKS AGO DECIDED TO CANCEL DEVELOPMENT OF A LONGAWAITED NOTEBOOK LINE OBSERVERS HAD EXPECTED THAT THE NEW LINE WOULD FINALLY ENABLE DELL TO BE COMPETITIVE IN THE FASTEST GROWING SEGMENT OF THE PERSONALCOMPUTER MARKET THE ONE NICHE OF THE PC MARKET IN WHICH THE COMPANY HAD BEEN TRAILING FALLOUT FROM THE DECISION TO CANCEL THE NOTEBOOK PROGRAM IS EXPECTED TO LINGER FOR THE NEXT TWO QUARTERS MICHAEL DELL THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID EARNINGS WOULD REMAIN BELOW YEARAGO LEVELS UNTIL AT LEAST THE FOURTH PERIOD IT'S CLEARLY A BIG ISSUE FOR US AND ONE WE'RE TRYING TO SOLVE HE SAID MR DELL STRESSED THAT THE COMPANY'S MAIN LINES OF BUSINESS DESKTOP COMPUTERS AND COMPUTER SERVERS LINKING NETWORKS OF USERS REMAINED ROBUST WITH SALES DOUBLING OVER THE PAST YEAR TOTAL SALES FOR THE LATEST QUARTER WERE A RECORD 6724 MILLION COMPARED WITH 3661 MILLION A YEAR EARLIER BUT THE COST OF CANCELING THE NOTEBOOK PROGRAM WAS DEVASTATING TO THE BOTTOM LINE THE COMPANY ESTIMATES THAT THE EXPENSE OF RETOOLING FOR A NEW PRODUCT AND WRITING DOWN THE VALUE OF ITS EXISTING NOTEBOOK INVENTORY LOWERED PRETAX INCOME FOR THE QUARTER BY 20 MILLION AND REDUCED PERSHARE EARNINGS BY 35 CENTS WHILE DELL'S EARNINGS IN RECENT QUARTERS HAVE SEEMED TO DEFY GRAVITY THE COMPANY HASN'T KEPT UP WITH COMPETITORS IN THE MARKET FOR NOTEBOOK COMPUTERS THE LIGHTWEIGHT PORTABLES THAT CAN FIT INSIDE BRIEFCASES WHILE NOTEBOOKS ACCOUNT FOR NEARLY A QUARTER OF SALES AT SOME OTHER COMPANIES NOTABLY COMPAQ COMPUTER CORP AND AST RESEARCH INC DELL'S PORTABLE COMPUTERS AMOUNT TO ONLY 6 OF SALES ANALYSTS SAY DELL'S NOTEBOOK BUSINESS HAS BEEN PLAGUED WITH MISSTEPS AND QUALITY CONTROL PROBLEMS DELL ALSO FAILED TO RESPOND QUICKLY TO THE ENTRANCE OF HIGHPERFORMANCE NEW MODELS SUCH AS APPLE COMPUTER INC'S POWERBOOK AND INTERNATIONAL BUSINESS MACHINES CORP'S THINKPAD AND DELL STILL HASN'T INTRODUCED NOTEBOOKS BASED ON INTEL CORP'S POWERFUL 486 MICROPROCESSOR AND DELL NOTEBOOKS DON'T YET FEATURE THE ACTIVEMATRIX COLOR SCREENS IN DEMAND BY HIGHEND USERS TO BOLSTER ITS LAGGARD NOTEBOOK LINE DELL RECENTLY HIRED JOHN K MEDICA THE 34YEAROLD WHO LED THE APPLE COMPUTER TEAM THAT DESIGNED THE POWERBOOK TO OVERSEE DESIGN AND DEVELOPMENT OF DELL'S PORTABLE PRODUCTS CANCELING THE NEW NOTEBOOK LINE DUE OUT IN AUGUST WAS ONE OF MR MEDICA'S FIRST ACTS WE BELIEVED THOSE PRODUCTS WOULD ONLY COMPOUND THE PROBLEM WE HAVE AND WOULD NOT SUCCEED IN THE MARKET MR DELL SAID MR MEDICA WAS TRAVELING IN JAPAN AND COULDN'T BE REACHED FOR COMMENT MR DELL SAID THE COMPANY INTENDED TO LOOK FOR ALLIANCES WITH OTHER TECHNOLOGY COMPANIES IN REPLACING THE CANCELED LINE BUT HE WOULDN'T IDENTIFY THE POTENTIAL PARTNERS OR COMMIT TO A SCHEDULE FOR INTRODUCING THE NEW MODELS ANALYSTS NOTED HOWEVER THAT NOTEBOOKS CAN'T BE BLAMED FOR ALL OF DELL'S PROBLEMS EVEN BEFORE THE ESTIMATED 35CENTSASHARE DROP CAUSED BY THE CANCELED NOTEBOOK LINE DELL'S EARNINGS FOR THE QUARTER REMAINED BELOW ANALYSTS' ESTIMATES WHICH RANGED FROM ABOUT 63 CENTS TO 83 CENTS A SHARE IN THE MIDST OF THE RAGING PRICE WAR ANALYSTS SAID DELL'S GROSS PROFIT MARGIN HAS BEEN ON A STEADY DECLINE FALLING TO 168 IN THE FISCAL FIRST QUARTER FROM 262 A YEAR EARLIER A SIZABLE DROP EVEN WITH A THREE PERCENTAGE POINT DECLINE CAUSED BY CHARGES RELATED TO THE CANCELING OF THE NOTEBOOK LINE AND AS THE ONETIME MAILORDER COMPANY EXPANDS INTO WALMART DISCOUNT STORES AND COMPUTER SUPERSTORES ITS PROFIT MARGINS WILL COME UNDER MORE PRESSURE ANALYSTS PREDICT THEY'RE MOVING FROM THE MOST PROFITABLE PART OF THE BUSINESS WHICH IS DIRECT MARKETING AND SALES TO THE LEAST PROFITABLE WHICH IS THE MIDDLEMAN ROLE SAID JOHN C MAXWELL TECHNOLOGY ANALYST WITH SOUNDVIEW FINANCIAL GROUP IN STAMFORD CONN ANALYSTS DON'T EXPECT DELL'S WOES TO AFFECT THE STOCKS OF OTHER COMPUTER MAKERS IN FACT SAID MR MAXWELL COMPAQ PROBABLY STANDS TO GAIN BECAUSE OF THE LACK OF NOTEBOOK PRODUCT FROM DELL 9305260037 930526 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL A RETROACTIVE TAX RISE COULD LEAVE MANY FILERS OWING BIG PAYMENTS NEXT APRIL THE TAX BILL WOULD ADD RATES OF 36 AND 396 ABOVE THE PRESENT 31 TOP BRACKET AS OF LAST JAN 1 WHILE WITHHOLDING TAX TABLES WOULDN'T CHANGE IN 1993 UNDERPAYMENTS OF ESTIMATED TAX CAUSED BY THE NEW RATES WOULDN'T BE PENALIZED STILL RETROACTIVITY IS OUTRAGEOUS ARGUES PETER SCOTT OF COOPERS & LYBRAND CPAS AND IT ALSO COULD LEAVE UNWARY FILERS GROPING FOR CASH NEXT YEAR TO MAKE UP FOR 1993 UNDERPAYMENTS THE PAIN COULD BE WORSE THAN THAT CAUSED BY GEORGE BUSH'S WITHHOLDINGTAX CUTS LAST YEAR MANY FILERS WERE UNDERWITHHELD IN 1992 AND CAME UP SHORT LAST MONTH THE LATEST FIGURES SHOW A 49 MILLION DROP 68 FROM 1992'S LEVEL IN THE NUMBER OF REFUNDS ISSUED A 13 MILLION DROP 12 IN RETURNS FILED AND A 697000 RISE 146 IN FILING EXTENSIONS AS FOR THE TAX BILL REVISING IRS TABLES AFTER ENACTMENT TO FORCE MORE WITHHOLDING THIS YEAR WOULD COME TOO LATE TO HELP FILERS ALREADY FAR BEHIND SO SCOTT WONDERS SHOULD YOU INCREASE WITHHOLDING OR ESTIMATEDTAX PAYMENTS BEFORE ENACTMENT IT MAY BE PRUDENT BUT I HAVEN'T DONE IT STATES' TAX REVENUES SHOW SLOWER QUARTERLY GROWTH DESPITE A ONETIME BOOST EXPECTING HIGHER FEDERAL TAX RATES MANY INDIVIDUALS ACCELERATED INCOME INTO 1992 THUS RAISING TAX PAYMENTS FOR 1992 THAT STATES ACTUALLY RECEIVED THIS YEAR STILL SAYS THE CENTER FOR THE STUDY OF THE STATES IN ALBANY NY INCOME AND SALESTAX REVENUES IN 49 STATES ROSE ONLY 58 IN THE FIRST QUARTER FROM A YEAR BEFORE LESS THAN IN ANY 1992 QUARTER ADJUSTED FOR LEGISLATED RISES AND INFLATION THE REAL GROWTH RATE WAS JUST 26 REFLECTING THE LULL IN THE ECONOMIC RECOVERY THE CENTER'S STEVEN GOLD SAYS THE QUARTERLY GAIN WAS DUE MAINLY TO THE TRANSITORY RISE IN PERSONALINCOME TAXES SALES AND CORPORATEINCOME TAXES SHOWED LESSER GAINS 19 STATES HAD LOWER CORPORATE TAX REVENUE THE SOUTHEAST SAW THE HIGHEST GROWTH THE FAR WEST DOMINATED BY AILING CALIFORNIA SHOWED THE WEAKEST OTHER REGIONS HAD MODERATE TO FAIRLY STRONG GAINS SCORPORATION RULES SHOULD BE LIBERALIZED SENS PRYOR AND DANFORTH SAY THE ARKANSAS DEMOCRAT AND THE MISSOURI REPUBLICAN PLAN A BIPARTISAN BILL TO AID FAMILY BUSINESSES AND HAVE SOUGHT ADVICE FROM SEVERAL GROUPS ON EASING RESTRICTIONS ON S CORPORATIONS WHICH ARE TAXED MUCH LIKE PARTNERSHIPS THE PAIR HAVEN'T CHOSEN THE BILL'S FEATURES ITS CHANCES IN 1993'S TAX BATTLES AREN'T KNOWN BUT PROPONENTS IN THE AMERICAN INSTITUTE OF CPAS THE AMERICAN BAR ASSOCIATION AND THE US CHAMBER OF COMMERCE HOPE TO GET THE BALL ROLLING THEY PROPOSE TO BUILD ON MEASURES FROM THE TAX BILL VETOED BY GEORGE BUSH LAST FALL AMONG THE GROUPS' PROPOSALS SAYS SAMUEL STARR OF COOPERS & LYBRAND CPAS ARE RAISE THE LIMIT ON SHAREHOLDERS TO 50 FROM 35 AND COUNT MEMBERS OF ONE FAMILY AS ONE HOLDER LET PENSION AND EMPLOYEE STOCKOWNERSHIP PLANS CHARITIES AND MORE KINDS OF TRUSTS BE STOCKHOLDERS LET S CORPORATIONS OWN OTHER S CORPORATIONS ISSUE NONCONVERTIBLE PREFERRED STOCK AND TREAT CONVERTIBLE DEBT AS DEBT NOT ANOTHER FORM OF STOCK THE GROUPS SAY THESE MEASURES WOULD OPEN WIDER ACCESS TO CAPITAL AND HELP PRESERVE FAMILY OWNERSHIP IT'S NO SECRET MANY FILERS DON'T KNOW THAT WHAT THEY TELL A CPA ISN'T SHIELDED BY PRIVILEGE FROM DISCLOSURE TO THE IRS AS ARE TALKS WITH LAWYERS BUT IT IS MORE SURPRISING THAT MANY CPAS ALSO DON'T KNOW SAYS ACCOUNTING PROF DAVID DORAN OF PENNSYLVANIA STATE UNIVERSITY'S BEHREND COLLEGE IN A SURVEY OF 111 CPA FIRMS 18 WRONGLY THOUGHT THEY HAD SUCH PRIVILEGE THE IRS COULD COLLECT CORPORATE DEBTS TO OTHER FEDERAL AGENCIES OUT OF TAX REFUNDS BUT IRS ANALYSTS FIGURE THAT WOULD REAP LESS THAN 04 OF THE MONEY COMPANIES OWE THEY SAY COLLECTIONS IN THE FIRST YEAR WOULD TOTAL NO MORE THAN 28 MILLION SLIPPING ON APPEAL THE NINTHCIRCUIT APPEALS COURT HAS REFUSED TO CONSIDER ANOTHER APPEAL BY DONALD L HYMES OF FAIRBANKS ALASKA BECAUSE HE HASN'T PAID A 1000 PENALTY THAT IT IMPOSED IN 1990 FOR A FRIVOLOUS APPEAL SIMPLIFIED REPORTING OF WAGES AND TAXES COULD SAVE EMPLOYERS A BUNDLE A MITRE CORP STUDY RELEASED BY THE IRS LAST WEEK SAYS EMPLOYERS SPEND OVER 6 BILLION A YEAR TO COMPLY WITH COMPLEX AND DIVERSE RULES FOR REPORTING WAGE AND TAX DATA TO THE IRS SOCIAL SECURITY THE LABOR DEPARTMENT AND STATE AGENCIES BUT COMBINED AND STANDARDIZED REPORTING COULD SAVE NEARLY 1 BILLION THE IRS TOLD A COMMITTEE OF OUTSIDE ADVISERS ON DATA REPORTING NOW THE AGENCIES PLAN A SIMPLIFIED SYSTEM TO LET AN EMPLOYER SEND A SINGLE REPORT TO ONE AGENCY WHICH WOULD FORWARD DATA TO THE OTHERS THE SYSTEM ALSO COULD TRIM FEDERAL AND STATE AGENCY COSTS THAT ARE SAID TO EXCEED 300 MILLION A YEAR STATE PARTICIPATION WOULD BE VOLUNTARY BUT ALREADY 11 STATES ARE JOINING A TEST IN WHICH SOCIAL SECURITY WILL SEND STATE DATA FROM W2 PAY STATEMENTS TO THE IRS THE IRS IN TURN WILL PASS THE DATA ON TO THE STATES SO THEY CAN ANALYZE THE EFFECTS ON COMPLIANCE AND COSTS PREVENTING UNAUTHORIZED DISCLOSURES OF DATA IS A MAJOR CONCERN THE IRS NOTED BRIEFS PRESIDENT CLINTON SENT TAX TREATIES WITH MEXICO AND THE NETHERLANDS TO THE SENATE FOR RATIFICATION THESE PACTS AND THOSE WITH RUSSIA AND BARBADOS AWAIT HEARINGS REVENUE PROCEDURE 9323 REVISES THE FEES FOR PRIVATE IRS RULINGS AND OPINIONS MANY FEES RISE THE BASIC CHARGE FOR DETERMINING TAX EXEMPTION CLIMBS TO 465 FROM 375 AFTER JUNE 30 9305260036 930526 BUSINESS BRIEFS INTERNATIONAL FLAVORS & FRAGRANCES INC PLANS A 133 MILLION EXPANSION OF ITS AROMA CHEMICAL PLANT IN HAVERHILL ENGLAND JOHN FLUKE MFG CO'S HOLDERS APPROVED THE ACQUISITION OF MOST OF THE TEST AND MEASUREMENT BUSINESS OF PHILIPS ELECTRONICS NV OF THE NETHERLANDS DUPONT CO SIGNED A LETTER OF INTENT TO BUY MONSANTO CO'S COLLOIDAL SILICA BUSINESS AND MONSANTO'S SYTON TRADEMARK TERMS WEREN'T DISCLOSED LM ERICSSON TELEFON OF SWEDEN SIGNED A CONTRACT VALUED AT MORE THAN 100 MILLION TO DOUBLE THE CAPACITY OF THE CELLULAR TELEPHONE NETWORK OF RADIOMOVIL DIPSA OF MEXICO INTEGRATED WASTE SERVICES INC AGREED TO BUY CLOSELY HELD US DISMANTLEMENT CORP OF CHICAGO TERMS WEREN'T GIVEN HUBCO INC RECEIVED REGULATORY APPROVAL TO PURCHASE A SUBSTANTIAL PORTION OF THE ASSETS AND LIABILITIES OF PILGRIM STATE BANK A SUBSIDIARY OF RAMAPO FINANCIAL CORP WAYNE NJ 9305260035 930526 US BID TO CUT DEBT TERMS WILL SAVE 108 BILLION WASHINGTON THE TREASURY SAID IT EXPECTS ITS MOVE TO RELY MORE ON SHORTERTERM DEBT TO SAVE THE GOVERNMENT 108 BILLION OVER THE NEXT FIVE YEARS SHY OF THE 164 BILLION GOAL SET IN THE PRESIDENT'S FEBRUARY BUDGET THE TREASURY ALSO DISCLOSED THAT THE CLINTON ADMINISTRATION'S DECISION TO REDUCE THE MINIMUM GUARANTEED INTEREST RATE ON SAVINGS BONDS TO 4 FROM 6 WILL SAVE 25 BILLION OVER THE FIVEYEAR PERIOD SAVINGS THAT WEREN'T ANTICIPATED IN THE FEBRUARY BUDGET TREASURY UNDERSECRETARY FRANK NEWMAN SAID PREVIOUSLY IN AN INTERVIEW WITH THE WALL STREET JOURNAL THAT THE AGENCY'S DECISION WOULD FALL SHORT OF THE BUDGET GOAL EARLIER THIS MONTH THE TREASURY SAID IT WOULD REDUCE ITS OFFERINGS OF 30YEAR BONDS ABOUT 45 ELIMINATE THE SEVENYEAR NOTE AND INCREASE ITS OFFERINGS OF DEBT WITH MATURITIES OF THREE YEARS OR LESS THE ESTIMATES WERE PREPARED BY THE TREASURY AND THE WHITE HOUSE BUDGET OFFICE THE CONGRESSIONAL BUDGET OFFICE PUTS THE SAVINGS AT 64 BILLION PRIMARILY BECAUSE IT MEASURES FROM A DIFFERENT STARTING POINT 9305260034 930526 INTERNATIONAL ITALIAN TV SAYS FIAT CHIEF FACES CORRUPTION INQUIRY BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN FIAT SPA'S CHIEF EXECUTIVE OFFICER CESARE ROMITI REPORTEDLY WAS PLACED UNDER INVESTIGATION FOR ALLEGED CORRUPTION IN THE CONTINUING ITALIAN CORRUPTION SCANDALS MR ROMITI'S LAWYER VITTORIO CHIUSANO SAID FIAT'S NO 2 EXECUTIVE HAD RECEIVED NO OFFICIAL NOTICE HE WAS UNDER INVESTIGATION AS OF YESTERDAY AFTERNOON HOWEVER STATE TELEVISION AND RADIO REPORTED HIS NAME APPEARS ON A LIST OF THOSE PEOPLE UNDER PRELIMINARY INVESTIGATION BY MILAN MAGISTRATES REPORTEDLY THE 69YEAROLD EXECUTIVE IS SUSPECTED OF ALLEGED ILLEGAL FINANCING OF POLITICAL PARTIES AND CORRUPTION MILAN INVESTIGATORS WOULD NEITHER CONFIRM NOR DENY THE REPORTS MR ROMITI GAVE VOLUNTARY TESTIMONY TO MAGISTRATES LAST MONTH ABOUT FIAT'S ALLEGED PARTICIPATION IN ITALY'S WIDESPREAD PUBLIC CORRUPTION SCANDAL AT THE TIME MAGISTRATES EMPHASIZED THAT MR ROMITI WASN'T UNDER INVESTIGATION FIAT'S CHIEF EXECUTIVE OFFICER HAS MAINTAINED THAT HE WASN'T INVOLVED PERSONALLY IN PAYING KICKBACKS TO POLITICAL PARTIES IN EXCHANGE FOR PUBLIC WORKS CONTRACTS ACCORDING TO STATE TELEVISION MR ROMITI'S INVESTIGATION STEMS FROM TESTIMONY BY ANOTHER FIAT EXECUTIVE WHO CLAIMED MR ROMITI KNEW ABOUT SWISS BANK ACCOUNTS USED SINCE 1985 TO CHANNEL FUNDS TO PARTIES AND DIDN'T JUST LEARN ABOUT THEM RECENTLY ANTONIO MOSCONI A FORMER EXECUTIVE AT FIAT CONSTRUCTION GROUP COGEFARIMPRESIT SPA GAVE THE NEW TESTIMONY TO JUDGES EARLIER THIS MONTH MR CHIUSANO SAID HE COULDN'T COMMENT ON THE REPORTS MEANWHILE FORMER CHRISTIAN DEMOCRATIC PRIME MINISTER CIRIACO DE MITA WAS FORMALLY ADVISED HE IS UNDER INVESTIGATION FOR A SEPARATE INQUIRY INTO MISUSE OF PUBLIC RECONSTRUCTION FUNDS FOLLOWING A 1980 EARTHQUAKE IN SOUTHERN ITALY MR DE MITA BECAME THE FOURTH EXPREMIER TO BE FORMALLY NOTIFIED HE IS UNDER INQUIRY IN VARIOUS CORRUPTION SCANDALS A NATIVE OF THE IRPINIA REGION IN CAMPANIA WHICH WAS BADLY DAMAGED BY THE QUAKE MR DE MITA IS ACCUSED OF THREATENING TO WITHDRAW STATE FUNDING TO THREE COMPANIES IF THEY FAILED TO HIRE PEOPLE HE RECOMMENDED 9305260033 930526 INTERNATIONAL BRIEF GESPARAL SA CONCERN OFFERS EXCHANGE OF SHARES IN L'OREAL UNIT GESPARAL SA THE PARENT COMPANY OF FRENCH PHARMACEUTICAL AND BEAUTY PRODUCTS GROUP L'OREAL SA IS OFFERING TO EXCHANGE L'OREAL SHARES FOR ALL THE INVESTMENT CERTIFICATES OUTSTANDING AND VOTING RIGHTS CERTIFICATES OF THE COMPANY GESPARAL WHICH CONTROLS 55 OF L'OREAL'S SHARES AND VOTING RIGHTS SAID IT IS OFFERING FOUR L'OREAL SHARES FOR FIVE L'OREAL INVESTMENT CERTIFICATES AND TWO L'OREAL SHARES FOR EVERY FIVE VOTING RIGHTS CERTIFICATES THE COMPANY DIDN'T SAY WHY IT WAS OFFERING THE SWAP SOME TRADERS THOUGHT IT WAS TO SIMPLIFY L'OREAL'S CAPITAL STRUCTURE ONE ANALYST SPECULATED THAT GESPARAL SOUGHT A CAPITAL GAIN PRICES OF BOTH THE INVESTMENT AND THE VOTING RIGHTS CERTIFICATES HAVE RISEN SHARPLY IN RECENT WEEKS TRADING IN L'OREAL SHARES WAS DELAYED YESTERDAY ON THE PARIS BOURSE WHEN TRADING EVENTUALLY STARTED THE STOCK DIPPED TO 1010 FRANCS 18354 BEFORE RECOVERING TO 1034 FRANCS DOWN FROM 1047 FRANCS AT MONDAY'S CLOSE THE INVESTMENT CERTIFICATES AND VOTING RIGHTS CERTIFICATES WILL REMAIN SUSPENDED ON THE BOURSE CASH MARKET EXCHANGE AUTHORITIES SAID 9305260032 930526 JURY TELLS HYUNDAI TO PAY DISABLED BOY 15 MILLION LOS ANGELES A JURY ORDERED HYUNDAI MOTOR CO TO PAY 15 MILLION TO A BOY LEFT BLIND AND DISABLED BY A CAR ACCIDENT THAT INVOLVED A SEATBELT SYSTEM WITHOUT A LAP RESTRAINT THE LOS ANGELES COUNTY SUPERIOR COURT JURY FOUND HYUNDAI LIABLE FOR INJURIES ADAM KETCHUM SUFFERED IN THE ACCIDENT IN SEPTEMBER 1990 SAID MR KETCHUM'S ATTORNEY MARK ROBINSON JR HYUNDAI DENIED ITS BELTS WERE DEFECTIVE AND SAID IT PLANNED TO APPEAL A HYUNDAI SPOKEWOMAN SAID IT WAS THE NATURE OF THE ACCIDENT AND NOT THE SEAT BELT THAT WAS THE CAUSE OF THE INJURIES ADAM WAS NINE YEARS OLD WHEN HIS MOTHER DROVE THE 1988 HYUNDAI EXCEL INTO THE REAR OF AN ILLEGALLY PARKED TRACTOR TRAILER THE BOY WAS IN THE FRONT SEAT EQUIPPED WITH A SHOULDER RESTRAINT BUT NO LAP BELT MR ROBINSON SAID THE CRASH CAUSED THE BELT TO COMPRESS THE BOY'S NECK CUTTING OFF THE OXYGEN SUPPLY TO THE BRAIN AND CAUSING PERMANENT BRAIN DAMAGE HE SAID THE TWOPOINT DIAGONAL SEAT BELT SYSTEM HAS BEEN SHOWN IN CRASH TESTS TO BE HARMFUL TO SHORTER ADULTS IN 1989 HYUNDAI ALONG WITH OTHER AUTO MAKERS BEGAN INSTALLING THREEPOINT PASSIVE RESTRAINT SYSTEMS WHICH INCLUDE A LAP BELT 9305260031 930526 MARKETING BRIEF LIBERTY MEDIA CORP ENCORE UNIT PLANS TO LAUNCH 6 SPECIALIZED CHANNELS BY '94 LIBERTY MEDIA CORP'S ENCORE PAYTV SERVICE ANNOUNCED PLANS TO LAUNCH SIX PAY CHANNELS EACH DEVOTED TO A DIFFERENT THEME BY THE SUMMER OF 1994 THE COMMERCIALFREE PAY SERVICE WILL ENABLE VIEWERS TO FLICK BETWEEN WESTERNS LOVE STORIES MYSTERIES ACTION/ADVENTURE TRUE STORIES AND TWEENS' A CHANNEL FOR 8TO16YEAROLDS ENCORE AND THE SIX CHANNELS WHICH WILL BE MADE AVAILABLE BY A TECHNIQUE KNOWN AS MULTIPLEXING WOULD COST CABLE SUBSCRIBERS ABOUT 5 OR 6 A MONTH THEY COULD BE SOLD AS A PACKAGE WITHOUT FALLING UNDER NEW FEDERAL REGULATIONS THAT RESTRICT BASICCABLE RATE INCREASES THE NEW CHANNELS WILL ROLL OUT ON CABLE SYSTEMS OWNED BY TELECOMMUNICATIONS INC WHICH REACHES MORE THAN 10 MILLION HOMES TO PROGRAM THE CHANNELS ENCORE MEDIA CORP WHICH IS 90OWNED BY LIBERTY HAS LICENSED MORE THAN 2500 MOVIES AND 3500 SERIES EPISODES FROM MAJOR STUDIOS AND INDEPENDENT DISTRIBUTORS THROUGH THE YEAR 2000 9305260030 930526 BUSINESS BRIEF SAN DIEGO GAS & ELECTRIC CO UTILITY SUES DEALERS CHARGES FRAUD IN REFRIGERATOR SALES SAN DIEGO GAS & ELECTRIC CO POLICING POPULAR APPLIANCE REBATES SAID IT SUED FOUR DEALERS FOR ALLEGED IMPROPER AND FALSE CLAIMS ON REFRIGERATOR SALES SAN DIEGO GAS SAID ITS SUIT FILED IN STATE COURT IN SAN DIEGO CHARGES THAT SOME STORES IMPROPERLY ASKED FOR OR RECEIVED REBATES ON REFRIGERATORS DESTINED FOR PLACES OUTSIDE ITS SERVICE TERRITORY INCLUDING NEARBY MEXICO THE UTILITY ALSO ALLEGED THAT SOME DEALERS FILED FRAUDULENT PAPERWORK AND DESTROYED DOCUMENTS TO SUPPORT THE CLAIMS NAMED IN THE LAWSUIT WERE STORES OPERATED BY PHILADELPHIABASED SILO INC RICHMOND VABASED CIRCUIT CITY STORES INC AND TWO LOCAL RETAILERS ALADRAY'S INC AND COUSINS PHOTO AND APPLIANCE WAREHOUSE INC SPOKESMEN FOR ALADRAY'S AND COUSINS SAID THEY WERE IN COMPLIANCE WITH THE UTILITY'S PROGRAM UNDER WHICH SAN DIEGO GAS PAID REBATES OF 25 TO 225 PER APPLIANCE OFFICIALS AT SILO AND CIRCUIT CITY COULDN'T BE REACHED FOR COMMENT SAN DIEGO GAS SAID IT PAID 39 MILLION LAST YEAR IN REBATES ON 46000 REFRIGERATORS THE ELECTRIC UTILITY HAS PAID ABOUT 26 MILLION TO DATE THIS YEAR ON ABOUT 14000 APPLIANCES IT SAID 9305260029 930526 BUSINESS BRIEF PACIFIC BANK NA RESCISSION OFFER IS PLANNED FOR 107 MILLION PLACEMENT PACIFIC BANK NA SAID IT PLANS TO MAKE A RESCISSION OFFER TO INVESTORS IN THE BANK'S RECENT 107 MILLION PRIVATE PLACEMENT OF STOCK AND WARRANTS BECAUSE OF A REQUIRED RESTATEMENT OF LOAN LOSS RESERVES THE BANK IN SAN FRANCISCO SAID THE APRIL 20 RESTATEMENT RAISED LOAN LOSS RESERVES TO 75 MILLION FROM 14 MILLION AT THE REQUEST OF THE COMPTROLLER OF THE CURRENCY THE CURRENCY COMPTROLLER RULED THAT THE PLACEMENT OFFERING INNACCURATELY DISCLOSED THE BANK'S FINANCIAL CONDITION AT THE END OF 1992 THE RESCISSION IF APPROVED BY THE CURRENCY COMPTROLLER WOULD ALLOW INVESTORS TO RETURN STOCKS AND WARRANTS AT THEIR PURCHASE PRICE PLUS INTEREST THE BANK SAID THE CURRENCY COMPTROLLER IS EXPECTED TO RULE ON WHETHER TO APPROVE THE RESCISSION OFFER WITHIN 30 DAYS IF ALL INVESTORS ELECT TO REDEEM THEIR STOCKS AND WARRANTS THE BANK SAID IT WOULD BE OUT OF COMPLIANCE WITH ITS MINIMUM CAPITAL REQUIREMENTS UNDER ITS AGREEMENT WITH THE CURRENCY COMPTROLLER 9305260028 930526 WHO'S NEWS AMYLIN PHARMACEUTICALS INC AMYLIN PHARMACEUTICALS INC SAN DIEGO JAMES E NIEDEL WAS ELECTED A DIRECTOR SUCCEEDING RICHARD B SYKES 50 YEARS OLD WHO RECENTLY WAS PROMOTED TO DEPUTY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GLAXO HOLDINGS PLC DR NIEDEL 49 IS SENIOR VICE PRESIDENT AND DIRECTOR OF GLAXO RESEARCH INSTITUTE THE RESEARCH ARM OF GLAXO HOLDINGS THAT IS BASED IN RESEARCH TRIANGLE PARK NORTH CAROLINA AMYLIN IS DEVELOPING NOVEL THERAPEUTIC PRODUCTS BASED ON AMYLIN A HORMONE PRODUCED BY THE PANCREAS THE COMPANY IS DOING ADDITIONAL AMYLIN RESEARCH IN COLLABORATION WITH GLAXO HOLDINGS 9305260027 930526 CLINTON MAKES SOME PROGRESS ON DEFICIT BILL CONCESSIONS MAY BE OFFERED ON TAXES AND SPENDING HOUSE TO PUSH FOR VOTE BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON AND DEMOCRATIC CONGRESSIONAL LEADERS SHORED UP SUPPORT FOR THE ADMINISTRATION'S ECONOMIC PACKAGE WITH THE PROSPECT OF CONCESSIONS ON BOTH TAX AND SPENDING ISSUES PERSONALLY LOBBYING GROUPS OF LAWMAKERS AT THE WHITE HOUSE MR CLINTON EXPRESSED BACKING FOR EFFORTS BY DEMOCRATIC CONSERVATIVES TO RESTRAIN THE GROWTH OF GOVERNMENT BENEFIT PROGRAM HOUSE AND SENATE LEADERS MEANWHILE MADE THEIR OWN GESTURE TO REBELLIOUS DEMOCRATS BY EXTENDING THE POSSIBILITY OF AN AMENDMENT TO THE EMBATTLED ENERGY TAX TO PROTECT AMERICAN EXPORTS BOTH MOVES APPEARED TO IMPROVE PROSPECTS FOR THE ADMINISTRATION'S DEFICITREDUCTION PROGRAM AND HOUSE LEADERS REITERATED THEY WILL PRESS FOR A HOUSE FLOOR VOTE TOMORROW IF WE DON'T THE PROCESS STOPS WARNED HOUSE SPEAKER THOMAS FOLEY AMERICANS DO NOT WANT THIS GOVERNMENT TO STOP ITS EFFORTS TO MOVE FORWARD ON DEFICIT REDUCTION ADDING URGENCY TO THE APPEALS OF DEMOCRATIC LEADERS IS THE PROSPECT OF POLITICAL DISASTER IF THE PARTY'S FIRST PRESIDENT IN A DOZEN YEARS LOSES A CRITICAL TEST OF HIS ECONOMIC PROGRAM THIS IS OUR MOMENT AS THE DEMOCRATIC PARTY TO PROVE WE CAN GOVERN SAID REP MIKE SYNAR D OKLA IF WE CAN'T PASS THIS BILL THE WHEELS ON THE WAGON FALL OFF TO DEMONSTRATE THE REASONABLENESS OF THE ADMINISTRATION'S PACKAGE MR SYNAR INTENDS TO OFFER A PLAN DRAWN FROM ROSS PEROT'S PAST PROPOSALS WHICH INCLUDE A GASOLINE TAX INCREASE MORE THAN TWICE AS LARGE AS MR CLINTON'S ENERGY TAX IN THE SENATE WHERE OPPOSITION FROM CONSERVATIVE DEMOCRAT DAVID BOREN OF OKLAHOMA HAS THREATENED TO BLOCK MR CLINTON'S PROGRAM IN THE FINANCE COMMITTEE MAJORITY LEADER GEORGE MITCHELL SECONDED MR CLINTON'S TENTATIVE ENDORSEMENT OF EFFORTS TO RESTRAIN SPENDING ON BENEFIT PROGRAMS MR MITCHELL ALSO SAID A POSSIBLE MODIFICATION TO THE ENERGY TAX THAT WOULD EFFECTIVELY EXEMPT EXPORTS OF ENERGYINTENSIVE PRODUCTS SHOULD HELP ACCOMMODATE THE OKLAHOMA SENATOR'S CONCERNS ABOUT THE TAX THOUGH MR BOREN CONTINUED TO OPPOSE THE ADMINISTRATION PROGRAM HE CALLED THE PROSPECT OF A MODIFICATION FOR EXPORTS A MOVE IN THE RIGHT DIRECTION HIS FINANCE COMMITTEE COLLEAGUES HOPING TO REASSURE HOUSE MEMBERS WHO FEAR VOTING FOR A TAX THAT'S DOOMED IN THE SENATE EXPRESSED CONFIDENCE THAT MR BOREN ULTIMATELY WOULD BACK THE ADMINISTRATION THE HOUSE NEEDS A SIGNAL THAT WE'RE NOT GOING TO PULL THE RUG OUT FROM UNDER THEM SAID SEN MAX BAUCUS D MONT AND WE'RE NOT THE PRECISE OUTLINES OF AN ENERGY TAX AMENDMENT TO PROTECT EXPORTS WHICH WOULD BE MADE IN THE SENATE AREN'T CLEAR AS PROPOSED BY THE ADMINISTRATION THE ENERGY TAX COULD HURT DOMESTIC PRODUCERS OF ENERGYINTENSIVE PRODUCTS WHO COMPETE BOTH IN THE US AND OVERSEAS AGAINST FOREIGN PRODUCERS WHO DON'T HAVE TO PAY THE ENERGY TAX IN RESPONSE THE HOUSE WAYS AND MEANS COMMITTEE ALTERED THE ENERGY TAX SO THAT IT WOULD BE LEVIED ON IMPORTED ENERGYINTENSIVE PRODUCTS SUCH AS ALUMINUM CERTAIN CHEMICALS AND REFINED PETROLEUM PRODUCTS BUT THAT WON'T HELP EXPORTERS OF ENERGYINTENSIVE PRODUCTS HENCE THE TALK OF SOMEHOW REBATING THE ENERGY TAX ON EXPORTS ON EXPORT INDUSTRIES THE ENERGY TAX IS IMPORTANT BECAUSE THERE ARE VERY COMPETITIVE INDUSTRIES AND THERE ISN'T MUCH PROFIT AS IT IS SAYS PHILIP VERLEGER AN INTERNATIONAL ENERGY ANALYST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS THE CHEMICAL INDUSTRY WOULD BE AMONG THE PRIMARY BENEFICIARIES IT'S UNCERTAIN HOWEVER IF SUCH A REBATE WOULD BE PERMITTED UNDER THE RULES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE US TRADE REPRESENTATIVE CITING A GATT RULING THAT ALLOWED THE US TO IMPOSE ITS SUPERFUND TAX ON IMPORTS SAYS THAT IMPOSING THE ENERGY TAX ON IMPORTS IS LEGAL BUT REBATING THE TAX ON EXPORTS MAY RUN AFOUL OF RULES GOVERNING EXPORT SUBSIDIES SOME TRADE EXPERTS SAY THE DETAILS OF A PROVISION TO RESTRAIN SPENDING ON FEDERAL BENEFIT PROGRAM AREN'T COMPLETE EITHER WITH WHITE HOUSE BLESSING HOUSE DEMOCRATIC LEADERS ARE WORKING ON A DILUTED VERSION OF A SPENDING CAP ON BENEFIT PROGRAMS CALLED ENTITLEMENTS THAT WAS CRAFTED BY REP JOHN SPRATT D SC LIKE THE DEFICITREDUCTION TRUST FUND THAT MR CLINTON HAS EMBRACED ANY SPENDING CAP THAT EMERGES FROM THE NEGOTIATIONS NOW UNDER WAY IN THE HOUSE IS LIKELY TO BE DESIGNED MORE TO DEMONSTRATE DEFICITCUTTING RESOLVE THAN TO FORCE ANY SIGNIFICANT CHANGES THE ADMINISTRATION AND DEMOCRATIC LIBERALS IN THE HOUSE WORRY THAT A STRICT CAP COULD INTERFERE WITH THE PRESIDENT'S HEALTHCARE INITIATIVE OR PREVENT INCREASED SPENDING ON SUCH PROGRAMS AS FOOD STAMPS AND UNEMPLOYMENT BENEFITS IN A RECESSION NONETHELESS THERE WERE SIGNS THAT MR CLINTON'S INTERCESSION WAS PRODUCING RESULTS REP TIM PENNY D MINN A LEADER OF THE DEMOCRATIC FISCAL CONSERVATIVES CALLED THE PRESIDENT'S EMBRACE OF ENTITLEMENT SPENDING RESTRAINT A HELPFUL DEVELOPMENT AND DEMOCRATIC FRESHMEN WERE SIMILARLY ENCOURAGED AS THEY EMERGED FROM A WHITE HOUSE MEETING WE'RE GOING TO BE WITH HIM SAID REP TOM BARLOW D KY WHO DESCRIBED THE STILLEVOLVING ENTITLEMENT PROVISION AS THE DISCIPLINE WE NEEDED TO MAKE THE PACKAGE SALEABLE POLITICALLY TO BE SURE HOUSE LEADERS REMAIN ANXIOUS ABOUT ROUNDING UP THE 218 VOTES NEEDED FOR PASSAGE PRELIMINARY COUNTS SHOWED JUST 150 FIRM DEMOCRATIC VOTES IN FAVOR AND SOME LAWMAKERS WANT THE PRESIDENT TO MAKE A NATIONALLY TELEVISED ADDRESS TO HELP SWAY REMAINING UNDECIDEDS THE AMERICAN PEOPLE DO NOT COMPLETELY UNDERSTAND WHAT'S IN THE PROGRAM SAID REP DAN GLICKMAN D KAN THE WHITE HOUSE SAID THE PRESIDENT PLANS TO DELIVER SUCH AN ADDRESS BUT NOT BEFORE TOMORROW'S VOTE BUT DEMOCRATS ARE APPLYING PRESSURE ON WAVERING MEMBERS IN OTHER WAYS CHARLES LOVELESS DIRECTOR OF LEGISLATION FOR THE AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES ONE OF 90 GROUPS THAT HAS ENDORSED THE CLINTON PLAN SAID IT HAS BEEN CONTACTING SOME 63 LAWMAKERS REPORTED TO BE UNDECIDED AND IS ASKING LOCAL UNION LEADERS TO DO THE SAME THE PITCH TO UNION LEADERS IS THAT DESPITE THE ENERGY TAX MOST OF THE TAXES ARE GOING TO BE PAID BY FAMILIES THAT EARN MORE THAN 200000 A YEAR MR LOVELESS SAID TO RALLY CORPORATE SUPPORT FOR HIS PLAN MR CLINTON IS SCHEDULED TO MEET TODAY OVER LUNCH WITH CORPORATE CHIEF EXECUTIVES AS HE DID LAST WEEK TODAY'S GUEST LIST OF CHIEF EXECUTIVES INCLUDES ROBERT CRANDALL OF AMR CORP JOHN SMITH OF GENERAL MOTORS CORP AND BRUCE LLEWELLYN OF PHILADELPHIA COCACOLA BOTTLING CO DAVID WESSEL AND JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE 9305260026 930526 BOMBAY CO SALES INCREASE 48 FORT WORTH BOMBAY CO SAID SALES FOR THE FOUR WEEKS ENDED MAY 23 ROSE 48 TO 216 MILLION FROM 146 MILLION A YEAR AGO THE SPECIALTY RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR ROSE 32 SALES FOR THE YEARTODATE INCREASED 28 TO 2078 MILLION FROM 1618 MILLION WHILE SAMESTORE SALES FOR THAT 47WEEK PERIOD INCREASED 14 9305260025 930526 FINANCING BUSINESS HEILIGMEYERS CO HEILIGMEYERS CO SAID IT SOLD TWO MILLION COMMON SHARES AND THAT UNDERWRITERS EXERCISED THEIR OPTION TO PURCHASE AN ADDITIONAL 300000 SHARES TO COVER OVERALLOTMENTS THE HOME FURNISHINGS RETAILER SOLD 1840000 SHARES IN THE US AND 460000 SHARES OUTSIDE THE US GOLDMAN SACHS & CO WAS LEAD UNDERWRITER PROCEEDS WILL BE USED TO REDUCE DEBT AND FOR OTHER CORPORATE PURPOSES THE SHARES WERE SOLD AT 33875 A SHARE OFFICIALS SAID THE RICHMOND VA COMPANY WHICH OPERATES 437 STORES IN 16 STATES PLANS TO OPEN ABOUT 60 STORES DURING THE CURRENT FISCAL YEAR 9305260024 930526 ENVIRONMENT BY DAVE KANSAS ENVIRONMENTAL WORRIES MOUNT ABOUT DREDGING AT THE NATION'S PORTS THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY'S THREEYEAR PUSH FOR REGULATORY APPROVAL TO DREDGE PORT NEWARKELIZABETH RENEWS CONCERNS ABOUT HOW TO DISPOSE OF DREDGED SEDIMENT THE PORT AUTHORITY WANTS TO TAKE THE SLUDGE FROM THE BOTTOM OF THE PORT AND DUMP IT 90 FEET UNDERWATER IN THE OCEAN AT THE MUD DUMP A LONGUSED SEDIMENT SITE ABOUT SIX MILES OFF NEW JERSEY'S SANDY HOOK BUT TRACES OF DIOXIN THE CHEMICAL USED IN MAKING THE HERBICIDE AGENT ORANGE HAVE BEEN DISCOVERED IN THE SILT SETTING OFF ALARMS AMONG ENVIRONMENTALISTS EPA OFFICIALS SAY THE POSSIBLE NEGATIVE EFFECTS OF DUMPING REMAIN UNCERTAIN IS IT BETTER TO KEEP CONTAMINANTS IN THE BAY AND ALLOW THEM TO SEEP OUT TO THE OCEAN ASKS WILLIAM MUSZYNSKI THE EPA'S REGIONAL ADMINISTRATOR IN NEW YORK PORTS AROUND THE COUNTRY ARE WATCHING THE PROCEEDINGS CLOSELY PROBABLY TWOTHIRDS OF OUR PORTS FACE ENVIRONMENTAL PROBLEMS IN THE NEAR TERM SAYS ERIK STROMBERG PRESIDENT OF THE AMERICAN ASSOCIATION OF PORT AUTHORITIES ENVIRONMENTAL GROUPS SAY BOSTON BALTIMORE AND OAKLAND CALIF ALL MAY FACE DREDGINGDISPOSAL ISSUES SOON DUMPING DREDGED SEDIMENTS IN THE OCEAN IS A PRACTICE AS OLD AS THE HILLS IT'S ARCHAIC BUT EASY SAYS SARAH CLARK AN ENVIRONMENTAL DEFENSE FUND SCIENTIST MS CLARK AND OTHERS SUGGEST THE MOST TOXIC SLUDGE COULD BE STORED IN BARGES OR OTHER VESSELS UNTIL OTHER MEANS OF DISPOSAL COULD BE DEVELOPED PORTS SAY SUCH OPTIONS ARE TOO COSTLY THE EPA'S NEW YORK OFFICE PLANS TO LOOK THOROUGHLY AT ALTERNATIVES TO DUMPING ENVIRONMENTALISTS HAVE BEEN TELLING US THAT WE HAVEN'T SPENT ENOUGH TIME TRYING TO DEVISE BETTER ALTERNATIVES TO THE DUMPING AND THEY'RE RIGHT SAYS MR MUSZYNSKI GOLF COURSE DESIGNERS SAY THEY'RE THE GOOD GUYS LONG A TARGET OF ENVIRONMENTALISTS GOLF COURSE DEVELOPERS CLAIM THE TITLE OF THE ORIGINAL ENVIRONMENTALISTS BY EMBRACING SOME ENVIRONMENTAL IDEAS DESIGNERS AND COURSE MANAGERS HOPE TO DEFUSE SOME OF THEIR OPPONENTS BUT PROTESTS CONTINUE TO GROW ALONG WITH INTEREST IN THE GAME LOOK WE WANT THE SAME CLEAN AIR AND CLEAN WATER THAT MOST PEOPLE WANT SAYS ROBERT TRENT JONES JR A PROMINENT GOLFCOURSE ARCHITECT BUT SOME OF THE PEOPLE WHO CALL THEMSELVES ENVIRONMENTALISTS REALLY ARE AGAINST GROWTH WE DON'T SEE OUR COURSES AS DESTRUCTIVE BUT MORE LIKE URBAN OR SUBURBAN PARKS SAYS GRAHAM COX OF THE NATIONAL AUDUBON SOCIETY SOME PEOPLE TRY TO PROMOTE CEMETERIES AS PARKS TOO CRITICS CONTINUE TO EXPRESS ANGER ABOUT THE HEAVY USE OF CHEMICALS AND DESTRUCTION OF HABITATS GOLF COURSES USE PESTICIDES TO THE LIMIT SAYS MR COX AND THE COURSES DON'T ENCOURAGE LOCAL VEGETATION THEY REALLY DON'T NEED TO USE CHEMICALS TO MAINTAIN THE TURF ADDS SARAH SULLIVAN OF THE NATIONAL COALITION AGAINST THE MISUSE OF PESTICIDES IN WASHINGTON EVEN REGULAR INSPECTIONS AND LOCALIZED SPRAYING WOULD BE BETTER THAN THE CONSTANT SPRAYING DONE IN MOST PLACES NOW COURSE DESIGNERS SEEKING TO EASE THESE CONCERNS HAVE BEGUN DEVELOPING OTHER MEANS OF MAINTAINING COURSES SUCH AS IMPORTING BIRDS TO PREY ON PESTS AT NEW YORK CITY'S PUBLIC COURSES A COURSE IN SQUAW VALLEY CALIF MONITORS NEARBY WELLS AND HAS SLASHED CHEMICAL USE OTHER ARCHITECTS SAY THEY WANT TO WEAVE COURSES AROUND NATURAL HABITATS TO MAINTAIN AS MUCH OF AN ECOSYSTEM AS POSSIBLE THE AMERICAN SOCIETY OF GOLF COURSE ARCHITECTS OFFERS A GUIDE ON HOW TO BE ENVIRONMENTALLY FRIENDLY WHAT WE TRY TO ENCOURAGE IS A COMMONSENSE APPROACH SAYS PAUL FULLMER EXECUTIVE DIRECTOR OF THE SOCIETY HOPEFULLY THINGS WORK OUT AND A NEW COURSE CAN BE BUILT BUT THERE ARE TIMES WHEN A COURSE JUST SHOULDN'T BE BUILT BECAUSE OF ENVIRONMENTAL CONCERNS PILOT FOOD COMPOSTING PROGRAMS PROVE NOT SO TASTY DESPITE A BALLYHOOED KICKOFF IN NOVEMBER 1991 THE INTENSIVE RECYCLING PROGRAM IN BROOKLYN'S PARK SLOPE IS JUST OVER HALFWAY TO ITS GOAL OF DIVERTING 70 OF THE WASTE STREAM THE PROGRAM HAS DRAWN ATTENTION BECAUSE IT'S THE ONLY US URBAN CURBPICKUP PROGRAM THAT SEPARATES FOOD WASTE FOR COMPOSTING UNDER THE PROGRAM RESIDENTS SEPARATE THEIR PAPER PLASTIC GLASS METALS AND COMPOSTABLE FOOD WASTE THE WEEKLY PICKUP HOWEVER CREATES ODOR PROBLEMS AND DRAWS VERMIN SOME RESIDENTS SAY WE HAVE HAD SOME COMPLAINTS ABOUT SMELLS DURING THE SUMMER SAYS THOMAS OUTERBRIDGE COORDINATOR OF NEW YORK'S FOOD COMPOSTING PROGRAM THE CITY COMPOSTS THE FOOD WASTE AT A SITE ON STATEN ISLAND THE FINISHED COMPOST IS GIVEN TO COMMUNITY GARDENS IN NEW YORK THE CENTER FOR THE BIOLOGY OF NATURAL SYSTEMS AT QUEENS COLLEGE WHICH IS DIRECTING THE STUDY SAYS HOMES IN THE FOOD PROGRAM DIVERT ABOUT 12 MORE OF THE WASTE STREAM THAN HOMES THAT DON'T RECYCLE FOOD AND ORGANIZERS SAY DIVERSION RATES STILL ARE CREEPING UPWARD WHILE NEW YORK HAS NO IMMEDIATE PLANS TO ADD A FOOD COMPOSTING ELEMENT TO ITS RECYCLING EFFORTS CITYWIDE THE CITY OF GUELPH ONTARIO RECENTLY RECEIVED MINISTERIAL APPROVAL TO EXPAND ITS OWN PROGRAM GUELPH DIVERTED AS MUCH AS 68 OF THE WASTE STREAM DURING A PILOT PROGRAM WHICH ALSO INCLUDED A FOOD COMPOSTING ELEMENT ABOUT 150000 PEOPLE ARE EXPECTED TO PARTICIPATE OLFACTORY ABATEMENT EPA ADMINISTRATOR CAROL M BROWNER PRESENTS NEW YORK WITH A 193 MILLION GRANT TO HELP THE CITY CAP STINKING SEWAGE TREATMENT TANKS ON THE HUDSON RIVER THE FUNDS COME JUST AS THE STATE PLANS TO OPEN A 28ACRE 140 MILLION PARK BUILT ON TOP OF THE AROMATIC TANKS TOMORROW PATCH 'EM UP AND WRITE A LETTER ESLEECK MANUFACTURING UNVEILS A NEW BLUETINGED COTTON PAPER MADE OF DENIM SCRAP CALLED BLUE JEAN BOND 9305260023 930526 FOREIGN EXCHANGE DOLLAR RETREATS IN FACE OF CONFIDENCE BY CONSUMERS TRAILING EXPECTATIONS BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR RETREATED TUESDAY AFTER A WEAKERTHANEXPECTED US CONSUMER CONFIDENCE REPORT RENEWED CONCERNS ABOUT THE STRENGTH OF THE US ECONOMIC RECOVERY ADDING TO PRESSURE ON THE US CURRENCY WERE COMMENTS BY A SENIOR TREASURY OFFICIAL ABOUT THE CLINTON ADMINISTRATION'S FOREIGNEXCHANGE POLICY THAT WERE INTERPRETED AS AN ENDORSEMENT OF A FIRMER YEN THE DAY'S DEVELOPMENTS HAD THEIR GREATEST IMPACT ON DOLLARYEN TRADING THE DOLLAR SET A NEW POSTWORLD WAR II LOW AGAINST ITS JAPANESE COUNTERPART LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16315 MARKS DOWN FROM 16374 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10935 YEN DOWN FROM 11065 YEN STERLING WAS TRADING AT 15425 UP FROM 15355 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10880 YEN A POST WORLD WAR II LOW AND AT 16280 MARKS MARKET PARTICIPANTS HAVE SAID REPEATEDLY THAT INDICATIONS OF A SUSTAINED US ECONOMIC RECOVERY WILL BE NECESSARY IF THE DOLLAR IS TO MOVE UPWARD SOLIDLY IN RAISING DOUBTS ABOUT THE FOOTING OF THE RECOVERY DISAPPOINTING US CONSUMER CONFIDENCE DATA PUSHED THE DOLLAR LOWER SAID DAVE GLOWACKI A SENIOR TRADER AT THE NATIONAL BANK OF DETROIT THE US CONFERENCE BOARD REPORTED THAT ITS CONSUMER CONFIDENCE INDEX STOOD AT 615 IN MAY DOWN FROM A REVISED 676 IN APRIL THE APRIL INDEX ORIGINALLY WAS REPORTED AT 677 A SURVEY OF ECONOMISTS BY THE DOW JONES CAPITAL MARKETS REPORT HAD FORECAST THE MAY INDEX AT 645 WE ARE A CONSUMERDRIVEN ECONOMY IF CONSUMERS AREN'T CONFIDENT THERE WON'T BE A RECOVERY MR GLOWACKI SAID THE INDEX HE ADDED HELPED START THE BALL ROLLING LOWER FOR THE DOLLAR TUESDAY REMARKS BY LAWRENCE SUMMERS TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS ALSO CONTRIBUTED TO THE DOLLAR'S SLIDE PARTICULARLY AGAINST THE YEN SAID JACK GRIFFIN AN ASSISTANT VICE PRESIDENT OF CORPORATE FOREIGN EXCHANGE AT FUJI BANK LTD IN TESTIMONY BEFORE A SENATE COMMITTEE MR SUMMERS APPEARED TO TRY TO INDICATE THAT THE CLINTON ADMINISTRATION DOESN'T HAVE A FIRMER YEN AS A POLICY GOAL SOME TRADERS NOTED COMMENTS BY SENIOR ADMINISTRATION OFFICIALS SUPPORTING A STRONG YEN AS A TOOL TO REDUCE JAPAN'S YAWNING TRADE SURPLUSES WERE A CENTRAL FORCE BEHIND THE 11 APPRECIATION OF THE YEN BETWEEN FEBRUARY AND APRIL PLAYERS HAVE SAID A SEMIANNUAL TREASURY REPORT TO CONGRESS THAT MR SUMMERS WAS PRESENTING DID SAY JAPAN'S TRADE IMBALANCE WITH THE US COULD BE CORRECTED TO SOME DEGREE BY A DECLINE OF THE DOLLAR AGAINST THE YEN BUT MR SUMMERS HIMSELF REJECTED THE IDEA THAT ORCHESTRATED DOLLAR DEVALUATIONS SHOULD BE USED TO BOOST US TRADE HE REITERATED THE ADMINISTRATION'S POLICY THAT EXCHANGE RATES SHOULD BE GUIDED BY ECONOMIC FUNDAMENTALS HOWEVER TRADERS AT FIRST INTERPRETED MR SUMMERS'S COMMENTS AS ENDORSING A FIRMER YEN MR GRIFFIN SAID THE SUMMERS TESTIMONY AND THE US CONSUMER CONFIDENCE DATA APPEARED ALMOST SIMULTANEOUSLY THE RESULT WAS THAT THE DOLLAR DROPPED LIKE A ROCK THROUGH THE PSYCHOLOGICALLY SIGNIFICANT 110YEN LEVEL MR GRIFFIN SAID THE DOLLAR SKIDDED AGAINST OTHER MAJOR CURRENCIES AS WELL THE US CURRENCY LATER BOUNCED OFF TECHNICAL SUPPORT AGAINST MOST OF THOSE OTHER MAJOR CURRENCIES BUT AGAINST THE YEN IT CONTINUED TO DRIFT DOWN IN NORTH AMERICA'S MIDAFTERNOON THE DOLLAR TOUCHED 10920 YEN A NEW POST WORLD WAR II LOW THE PREVIOUS RECORD 10925 YEN HAD BEEN SET APRIL 27 DESPITE THE SIZE AND PACE OF THE DOLLAR'S SLIDE THERE WERE NO INDICATIONS DURING THE NORTH AMERICAN DAY OF EITHER CENTRAL BANK INTERVENTION OR RATE CHECKS TO SUPPORT THE US CURRENCY AGAINST THE YEN THE YEN'S ADVANCE AGAINST THE DOLLAR ALSO FIRMED IT AGAINST THE MARK CENTRAL BANK INTERVENTION TO HALT YEN RALLIES HAS ALWAYS COME AGAINST THE DOLLAR RECENTLY NEVER THE MARK MR GRIFFIN SAID CONSEQUENTLY MANY PLAYERS WHO WANT TO LATCH ONTO YEN STRENGTH BUT ARE CONCERNED ABOUT THE POSSIBILITY OF INTERVENTION FIND IT A SAFER POSITIONAL MOVE TO BUY YEN AGAINST MARKS RATHER THAN DOLLARS HE SAID LATE TUESDAY THE MARK TRADED AT 6707 YEN DOWN FROM 6756 YEN LATE MONDAY AND AGAIN NEAR RECORD LOWS COMMENTS BY A SENIOR OFFICIAL OF GERMANY'S BUNDESBANK THAT APPEARED TO SIGNAL RELUCTANCE TO TRIM GERMAN INTEREST RATES GAVE SOME STRENGTH TO THE MARK AGAINST THE DOLLAR SAID CHRISTOPH BENZ AN ASSISTANT TREASURER AT BANK JULIUS BAER & CO 9305260022 930526 TECHNOLOGY & HEALTH AT&T TO BUILD FACILITIES IN EUROPE AS PART OF NEW GLOBAL NETWORK SYSTEM BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT PLANS TO BUILD NETWORK FACILITIES IN EUROPE AND TURN ITS LONGDISTANCE NETWORK INTO A GLOBAL SYSTEM THROUGH BROAD ALLIANCES WITH OTHER INTERNATIONAL CARRIERS MULTINATIONAL CORPORATIONS FED UP WITH THE HASSLE OF SETTING UP THEIR OWN SPECIALIZED NETWORKS IN EUROPE AND ASIA ARE PRESSURING THE BIG COMMUNICATIONS CARRIERS TO OPERATE GLOBALLY AT&T'S NEW NETWORK SERVICE CALLED WORLDSOURCE IS EXPECTED TO LINK CUSTOMERS INTO A GLOBAL SYSTEM CARRYING VOICE AND HIGHSPEED DATA TRAFFIC CUSTOMERS ARE TELLING US THEY'RE EXPANDING AROUND THE WORLD THEY WANT SIMPLICITY SAID JOSEPH NACCHIO PRESIDENT OF AT&T BUSINESS COMMUNICATION SERVICES WORLDSOURCE HE SAID WILL GIVE CUSTOMERS ONESTOP SHOPPING INSTEAD OF HAVING TO NEGOTIATE VOICE AND DATA TRANSMISSION SERVICES WITH LOCAL CARRIERS AT&T'S PLAN WHICH WAS EXPECTED IS MULTITIERED IT INCLUDES THE FORMATION OF A JOINT VENTURE COMPANY CALLED WORLD PARTNERS WITH KOKUSAI DENSHIN DENWA JAPAN'S INTERNATIONAL CARRIER AND SINGAPORE TELECOM MR NACCHIO SAID AT&T AND ITS PARTNERS WILL INVEST MORE THAN 100 MILLION OVER THE NEXT FEW YEARS IN THE VENTURE AT&T WILL HOLD A 50 STAKE IN THE VENTURE WHILE KDD HOLDS 30 AND SINGAPORE TEL 20 CARRIERS IN AUSTRALIA SOUTH KOREA AND AT&T'S NEW 20OWNED CANADIAN AFFILIATE UNITEL COMMUNICATIONS INC HAVE AGREED TO LINK UP WITH THE NEW NETWORK SERVICE HE SAID IN ADDITION AT&T SAID IT WILL SPEND MORE THAN 350 MILLION OVER FIVE YEARS TO BUILD ADVANCED NETWORK SWITCHING FACILITIES IN EUROPE THE COMPANY WHICH IS HAVING A HARD TIME CONVINCING EUROPEAN CARRIERS TO JOIN ITS VENTURE WILL ADD TO ITS OWN FACILITIES IN THE UNITED KINGDOM AND THE NETHERLANDS AND INSTALL NEW EQUIPMENT IN SEVEN OTHER COUNTRIES MR NACCHIO ACKNOWLEDGED THAT AT&T'S PLAN WILL STIR SOME CONTROVERSY AS THE COMPANY PUSHES INTO FOREIGN MARKETS DOMINATED BY NATIONAL MONOPOLIES BUT HE SAID AT&T STILL WILL LEASE THE LOCAL TRANSMISSION LINES FROM ESTABLISHED CARRIERS WITHIN THOSE COUNTRIES AT&T HE SAID HAS BEEN NEGOTIATING WITH EUROPEAN CARRIERS TO JOIN ITS VENTURE FOR BETTER THAN A YEAR HE SAID BUT HE SAID THAT WITH AT&T'S CUSTOMERS CLAMORING FOR ONESTOP SHOPPING ESPECIALLY IN EUROPE AT&T COULDN'T WAIT ANY LONGER FOR NATIONAL CARRIERS SUCH AS THE DEUTSCHE BUNDESPOST AND FRANCE TELECOM TO JOIN THE MARKET IS MOVING THIS WAY THE FORCES ARE IRRESISTIBLE HE SAID WE DON'T PLAN TO LEAVE OUR CUSTOMERS AT THE EUROPEAN BORDERS AT&T WHICH HAS 11 MILLION BUSINESS CUSTOMERS IN THE US EXPECTS TO HAVE SEVERAL HUNDRED MULTINATIONALS SIGNED UP FOR THE SERVICE WITHIN TWO YEARS HE ADDED AT&T IS IMPROVING THE COORDINATION AND QUALITY OF TELECOMMUNICATIONS SERVICES SAID MICHAEL RADCLIFF VICE PRESIDENT OF CORPORATE INFORMATION SYSTEMS AT HONEYWELL INC WHICH SAID IT WOULD SUBSCRIBE TO WORLDSOURCE WE DON'T NEED A PATCHWORK OF NETWORKS AS PART OF THE EUROPEAN PLAN MR NACCHIO SAID AT&T WILL REASSIGN 650 OF ITS EMPLOYEES TO MANAGE AND SUPPORT ITS OPERATIONS IN EUROPE AT&T'S NEW SERVICE IS DESIGNED TO BEAT MCI COMMUNICATIONS CORP AND BRITISH TELECOMMUNICATIONS PLC EACH OF WHICH IS RACING TO SET UP ITS OWN GLOBAL SYSTEM A SPOKESMAN FOR BRITISH TELECOM BRUSHED ASIDE AT&T'S PLAN SAYING THIS DOESN'T LEAVE US WITH THE LITTLE FISH HE SAID BT WILL PURSUE SIMILAR ALLIANCES WITH FOREIGN CARRIERS AT&T'S DEAL WON'T HAVE MUCH IMPACT ON OUR PLANS IT'S NOT AN EXCLUSIVE ALLIANCE HE SAID IN LATE NEW YORK STOCK EXCHANGE TRADING AT&T WAS UP 150 TO 62 A SHARE 9305260021 930526 VIACOM CEO AFFIRMS ANALYSTS' PREDICTIONS HINTS AT STOCK SPLIT NEW YORK VIACOM INC'S CHIEF EXECUTIVE SAID HE'S COMFORTABLE WITH ANALYSTS' ESTIMATES THAT THE COMPANY WILL HAVE NET INCOME FOR 1993 OF 110 TO 130 A SHARE EXCLUDING AN EXTRAORDINARY GAIN FRANK J BIONDI JR PRESIDENT AND CHIEF EXECUTIVE OF THE CABLE AND ENTERTAINMENT COMPANY ALSO SAID A SPLIT IS POSSIBLE IF THE COMPANY'S STOCK PRICE CONTINUES UPWARD IN LATE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE VIACOM WAS QUOTED AT 48 UP 50 CENTS FROM MONDAY'S 52WEEK HIGH OF 4750 MR BIONDI SAID ANALYSTS' ESTIMATES FOR VIACOM'S 1993 EARNINGS EXCLUDE A FIRSTQUARTER PRETAX GAIN OF 55 MILLION FROM THE SALE OF ITS MILWAUKEE CABLE SYSTEM HE DISCUSSED THE OUTLOOK FOR VIACOM AFTER THE COMPANY'S ANNUAL SHAREHOLDERS' MEETING YESTERDAY IN NEW YORK IN 1992 THE COMPANY HAD NET INCOME OF 49 MILLION OR 41 CENTS A SHARE INCLUDING AN EXTRAORDINARY CREDIT OF 171 MILLION FROM TAXLOSS CARRYFORWARDS REVENUE WAS 186 BILLION MR BIONDI SAID HE EXPECTS THE COMPANY'S MTV AND SHOWTIME SUBSIDIARIES TO HAVE RECORD YEARS AND THAT VIACOM'S CABLESYSTEMS UNIT IS ALSO EXPECTED TO HAVE A GOOD YEAR HE ALSO SAID THE COMPANY'S BROADCAST PROPERTIES ARE DOING WELL ADDING THAT THE ONLY DIVISION NOT HAVING A TERRIFIC YEAR IS THE COMPANY'S SYNDICATION BUSINESS REFLECTING A GENERAL SOFTNESS IN THE MARKET HE DECLINED TO FORECAST SECONDQUARTER EARNINGS AT THE MEETING MR BIONDI SAID IN RESPONSE TO A SHAREHOLDER'S QUESTION THAT A CASH DIVIDEND ON COMMON STOCK IS UNLIKELY IN THE NEAR FUTURE HOWEVER HE SAID IT IS ENTIRELY POSSIBLE THAT WITH A CONTINUED RISE IN THE COMPANY'S STOCK PRICE VIACOM WILL CONSIDER A STOCK SPLIT VIACOM STOCK LAST SPLIT THREE YEARS AGO 9305260020 930526 MUTUAL FUNDS STOCK FUNDS TOOK IN RECORD 116 BILLION ON APRIL IRA RUSH BEFORE TAX DEADLINE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A RECORD 116 BILLION FLOODED INTO STOCK MUTUAL FUNDS IN APRIL AS INVESTORS RUSHED TO PUT MONEY IN THEIR INDIVIDUAL RETIREMENT ACCOUNTS AHEAD OF THE APRIL 15 TAX FILING DEADLINE APRIL'S MASSIVE INFLOW INTO STOCK FUNDS NUDGED ASIDE THE PRIOR RECORD OF 113 BILLION WHICH WAS SET THE MONTH BEFORE SO FAR IN MAY WE'RE DOWN 10 COMPARED TO LAST MONTH SAYS JON FOSSEL CHAIRMAN OF OPPENHEIMER MANAGEMENT CORP NEW YORK BUT LAST MONTH WAS A HECK OF A MONTH APRIL WAS IRA MONTH IT WAS AN ALLTIME RECORD FOR US OTHER FUND GROUPS REPORT A SLOWDOWN IN STOCKFUND SALES IN MAY BUT THE SALES PACE REMAINS BRISK WHICH COULD HELP SUPPORT STOCK PRICES IN THE MONTHS AHEAD MUTUAL FUNDS HAVE EMERGED AS MAJOR PLAYERS IN THE STOCK MARKET AND THEIR BUYING COULD DRIVE SHARE PRICES HIGHER BOND FUNDS WERE ALSO INUNDATED WITH NEW CASH DURING APRIL PULLING IN 10 BILLION FROM INVESTORS UP FROM 85 BILLION IN MARCH APRIL'S COMBINED INFLOW INTO THE STOCK AND BOND ARENAS WAS 216 BILLION THE HIGHEST TOTAL EVER RECORDED THESE FIGURES WHICH COME FROM THE INVESTMENT COMPANY INSTITUTE EQUAL THE FUND INDUSTRY'S NEW SALES OF FUNDS MINUS WITHDRAWALS BY DEPARTING SHAREHOLDERS PLUS THE NET RESULT OF FUNDSWITCHING WITHIN THE SAME FUND GROUP REINVESTED DIVIDENDS ARE EXCLUDED THE BULLISHNESS OF STOCKFUND INVESTORS ISN'T SHARED ENTIRELY BY STOCKFUND MANAGERS WHO WERE SITTING ON 555 BILLION IN CASH AT THE END OF APRIL EQUAL TO 103 OF STOCKFUND ASSETS THAT'S UP FROM 98 IN MARCH AND WELL ABOVE THE RECENT LOW OF 79 SET IN JANUARY 1992 STOCKFUND SALES HAVE BEEN RUNNING AT A TORRID PACE SINCE EARLY 1991 WHEN INVESTORS SHRUGGED OFF WORRIES ABOUT THE PERSIAN GULF WAR AND BEGAN PILING INTO STOCK FUNDS BUT SALES REALLY KICKED INTO HIGH GEAR IN NOVEMBER 1992 IN THE PAST SIX MONTHS A RECORD FOR MONTHLY STOCKFUND SALES HAS BEEN SET ON FOUR OCCASIONS THIS YEAR ALONE STOCK FUNDS HAVE PULLED IN 418 BILLION THAT'S BETTER THAN THE FULLYEAR TOTAL FOR EVERY YEAR EXCEPT 1992 BUT WHILE MONEY CONTINUES TO CASCADE INTO STOCK FUNDS NOT ALL OF IT IS GOING INTO FUNDS THAT BUY US STOCKS ACCORDING TO FUND RESEARCHER LIPPER ANALYTICAL SERVICES US STOCK FUNDS HAVE SHOWN A RETURN OF JUST 38 THIS YEAR WHILE FOREIGNSTOCK FUNDS HAVE SOARED AN AVERAGE 133 THAT PERFORMANCE HAS PROMPTED MANY FUND INVESTORS TO MOVE MONEY ABROAD GLOBAL FUNDS WHICH BUY BOTH US AND FOREIGN STOCKS AND INTERNATIONAL FUNDS WHICH INVEST EXCLUSIVELY ABROAD HAVE PULLED IN 46 BILLION IN 1993 INCLUDING 24 BILLION IN APRIL THE FOREIGNFUND BUYING BINGE CONTINUED THIS MONTH BOTH T ROWE PRICE ASSOCIATES AND SCUDDER STEVENS & CLARK SAY THEIR BESTSELLING STOCK FUND THIS MONTH HAS BEEN THEIR FLAGSHIP INTERNATIONAL FUND THE INTERNATIONAL EQUITY FUNDS ARE DEFINITELY AWAKENING FROM A LONG PERIOD OF DECLINING SALES SAYS MICHAEL HINES A SENIOR VICE PRESIDENT WITH FIDELITY INVESTMENTS THE GIANT BOSTON FUND GROUP WITH GOLD FUNDS UP AN AVERAGE 488 SO FAR IN 1993 INVESTORS ARE ALSO SWARMING INTO THESE FUNDS FIDELITY INVESCO FUNDS GROUP SCUDDER AND VANGUARD ALL REPORT STRONG SALES OF GOLD FUNDS OVERALL THIS MONTH'S STOCKFUND SALES HAVE SLOWED FROM APRIL'S HEADY PACE WHILE BOND FUND SALES THIS MONTH ARE RUNNING AT ABOUT APRIL'S LEVEL ACCORDING TO AMG DATA SERVICES AN ARCATA CALIF FIRM THAT TRACKS THE WEEKLY CASH INFLOW INTO MUTUAL FUNDS SHORTTERM BOND FUNDS ARE HOT SELLERS THESE DAYS ACCORDING TO FUND GROUPS SUCH AS FIDELITY STRONG FUNDS AND TNE FUND GROUP THERE'S SOME NERVOUSNESS AMONG INVESTORS ABOUT GOING TOO FAR OUT ON THE YIELD CURVE INTO LONGERTERM BOND FUNDS SAYS ANDREW ZIEGLER PRESIDENT OF STRONG FUNDS BUT THERE'S GOOD FLOW INTO THE SHORTTERM BOND FUNDS TAXFREE MUNICIPAL BOND FUNDS REMAIN HUGELY POPULAR WITH INVESTORS WORRIED ABOUT AN EXPECTED RISE IN INCOME TAX RATES MUNI FUNDS ACCOUNTED FOR MORE THAN A THIRD OF THE MONEY GOING INTO BOND FUNDS IN APRIL PULLING IN ALMOST 35 BILLION 9305260019 930526 ECONOMY BANK INSURANCE FUND SHOWS FIRST BLACK INK SINCE '91 FDIC SAYS WASHINGTON A SHARP REDUCTION IN BANK FAILURES HAS PUT THE FUND THAT INSURES DEPOSITORS AGAINST SUCH COLLAPSES IN THE BLACK FOR THE FIRST TIME SINCE 1991 THE FEDERAL DEPOSIT INSURANCE CORP SAID THE AGENCY SAID THE BALANCE IN THE BANK INSURANCE FUND WAS 12 BILLION AS OF MARCH 31 COMPARED WITH A DEFICIT OF 101 MILLION AT THE END OF 1992 AND A SHORTFALL OF 703 BILLION AT THE END OF 1991 THE FDIC WHICH RELEASED THE UNAUDITED FIGURES YESTERDAY ALSO VOTED TO CONTINUE CHARGING BANKS INSURANCE PREMIUMS RANGING FROM 23 CENTS TO 31 CENTS FOR EACH 100 OF DOMESTIC DEPOSITS UNDER THE AGENCY'S RISKBASED PREMIUM PLAN WEAK BANKS THOSE THAT FACE THE HIGHEST CHANCE OF FAILURE PAY HIGHER FEES THAN STRONG BANKS BANKS EARNED RECORD PROFITS LAST YEAR SO MOST OF THE BANKS PAY THE LOWEST PREMIUM UNDER A 1991 BANK LAW THE FDIC HAS LIMITED AUTHORITY TO REDUCE DEPOSITINSURANCE PREMIUMS UNTIL THE BANK INSURANCE FUND WHICH BACKS DEPOSITS UP TO 100000 REACHES 125 OF INSURED DEPOSITS AT THE END OF MARCH THE PERCENTAGE STOOD AT 006 OFFICIALLY THE FDIC PROJECTS THAT THE FUND WILL REACH THE 125 LEVEL IN 2002 BUT OFFICIALS PRIVATELY ARE BEGINNING TO PREDICT THAT THE STRENGTHENING BANKING INDUSTRY WILL HELP PUT THE FUND AT THE REQUIRED LEVEL YEARS SOONER THE IMPROVEMENT IS DUE LARGELY TO A SLOWDOWN IN BANK FAILURES IN THE FIRST THREE MONTHS OF THIS YEAR SEVEN BANKS WITH TOTAL ASSETS OF 731 MILLION FAILED BY CONTRAST 35 BANKS WITH ASSETS OF 14 BILLION FAILED IN THE FIRST QUARTER OF LAST YEAR EARLIER THIS YEAR THE FDIC ESTIMATED THAT BETWEEN 70 AND 90 BANKS WITH ASSETS OF 25 BILLION WOULD FAIL IN 1993 AGENCY OFFICIALS NOW CONCEDE THAT THE NUMBER AND COST OF FAILURES ARE LIKELY TO BE FAR LESS 9305260018 930526 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 STATION CASINOS INC 110 MILLION OF SENIOR SUBORDINATED NOTES DUE JUNE 1 2003 PRICED AT PAR TO YIELD 9625 THE SIZE OF THE OFFERING WAS RAISED FROM A PLANNED 100 MILLION NONCALLABLE FOR FIVE YEARS THE ISSUE WAS PRICED THROUGH DEALERS LED BY SALOMON BROTHERS INC THE OFFERING IS RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE OFFERING WAS MADE CONCURRENTLY WITH THE COMPANY'S INITIAL PUBLIC OFFERING OF 147 MILLION SHARES OF COMMON STOCK PRICED AT 20 APIECE AUDIO/VIDEO AFFILIATES INC TWO MILLION COMMON SHARES PRICED AT 1425 APIECE THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC CLEVELAND ELECTRIC ILLUMINATING CO 100 MILLION OF A NEW SERIES OF DEPOSITORY SHARES PRICED AT 25 APIECE PLUS ACCRUED DIVIDENDS FISERV INC 39 MILLION COMMON SHARES SOLD AT 1925 APIECE THROUGH AN OFFERING MANAGED BY MORGAN STANLEY & CO MERRILL LYNCH & CO AND ROBERT W BAIRD & CO STATION CASINOS INC INITIAL OFFERING OF 147 MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH UNDERWRITERS COMANAGED BY SALOMON BROTHERS INC DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND VOLPE WELTY & CO WORLD ACCEPTANCE CORP TWO MILLION COMMON SHARES PRICED AT 1450 APIECE BY FIRST UNION CORP THROUGH UNDERWRITERS LED BY PAINEWEBBER INC ILLINOIS 2496 MILLION SERIES OF 1993 REFUNDING GENERALOBLIGATION BONDS APPARENTLY WON BY A FIRST BOSTON CORP GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 4895 YIELDS FOR REOFFERED BONDS RANGE FROM 35 IN 1995 TO 535 IN 2005 MOODY'S RATED THE ISSUE DOUBLEA AND S&P ASSIGNED A DOUBLEAMINUS RATING NEW YORK CITY HEALTH & HOSPITALS CORP 550 MILLION OF 1993 SERIES A HEALTHSYSTEM BONDS PRICED BY A DILLON READ & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 34 IN 1994 TO 636 IN 2020 SECURITIES DUE IN 2011 AND 2023 COMPRISE FLOATERS AND INVERSE FLOATERS AND WEREN'T FORMALLY REOFFERED TO INVESTORS BONDS DUE IN 19952004 AND 2008 ARE INSURED BY CONNIE LEE INSURANCE CO AND AMBAC INDEMNITY CORP IS INSURING BONDS DUE IN 2011 2013 2022 AND 2023 THE UNINSURED BONDS CARRY A BAA RATING FROM MOODY'S AND TRIPLEB RATINGS FROM BOTH S&P AND FITCH INVESTORS SERVICE INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993102 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993107 IS BACKED BY FANNIE MAE 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 350 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993106 IS BACKED BY FANNIE MAE 20YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 775 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 50 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993G24 IS BACKED BY STRIPPED MORTGAGEBACKED SECURITIES TRUST 227 WHICH IN TURN IS BACKED BY 8 1/2 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES FIRST CHICAGO CORP 1 BILLION IN TWO ISSUES BACKED BY CREDITCARD ASSETBACKED CERTIFICATES ACCORDING TO MCM CORPORATEWATCH FIRST CHICAGO MASTER TRUST II 1993F LED BY FIRST BOSTON CORP CONSISTS OF 700 MILLION IN FLOATINGRATE ASSETBACKED CERTIFICATES PRICED INITIALLY WITH A COUPON OF 34875 AT PAR THE CERTIFICATES WITH AN AVERAGE LIFE OF 506 YEARS WILL FLOAT 30 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE TO A 12 CAP THE CERTIFICATES ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P ON A 13 CASH COLLATERAL ACCOUNT THE ISSUE HAS A CONTROLLED AMORTIZATION STRUCTURE WITH A REVOLVING PERIOD EXTENDING FOR 54 MONTHS AND THE FIRST PRINCIPAL PAYMENTS WILL BEGIN JAN 15 1998 FIRST CHICAGO CORP NATIONAL BANK IS THE SERVICER AND SELLER FIRST CHICAGO MASTER TRUST II 1993G LED BY FIRST CHICAGO CAPITAL MARKETS CONSISTS OF 300 MILLION IN FLOATINGRATE ASSETBACKED CERTIFICATES PRICED INITIALLY WITH A COUPON OF 33675 AT PAR THE CERTIFICATES WITH AN AVERAGE LIFE OF 306 YEARS WILL FLOAT 18 BASIS POINTS ABOVE ONEMONTH LIBOR TO A 12 CAP THE CERTIFICATES WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P ON A 13 CASH COLLATERAL ACCOUNT THE ISSUE HAS A CONTROLLED AMORTIZATION STRUCTURE WITH A 30MONTH REVOLVING PERIOD AND THE FIRST PRINCIPAL PAYMENT IS SCHEDULED FOR JAN 15 1996 GENERAL MOTORS ACCEPTANCE CORP 195 BILLION OF AUTOMOBILE ASSETBACKED CERTIFICATES PRICED IN FIVE PARTS THROUGH A SPECIALPURPOSE VEHICLE CAPITAL AUTO RECEIVABLES ASSET TRUST 19932 ACCORDING TO MCM CORPORATEWATCH FIRST BOSTON CORP LED THE OFFERING THE 750 MILLION CLASS A1 CERTIFICATES WERE PRICED AS 335S AT PAR THE MONTHLYPAY CERTIFICATES WITH A 039YEAR AVERAGE LIFE AND A LEGAL FINAL MATURITY OF JUNE 15 1994 WERE RATED SINGLEA1PLUS BY S&P THE 100 MILLION CLASS A2 CERTIFICATES WERE PRICED AS 371S AT PAR THE MONTHLYPAY CERTIFICATES WITH A 088YEAR AVERAGE LIFE AND A LEGAL FINAL MATURITY OF AUG 15 1994 DO NOT PAY PRINCIPAL FOR NINE MONTHS THE CERTIFICATES WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE 641 MILLION CLASS A3 CERTIFICATES WERE PRICED AS 42S AT 99 31/32 TO YIELD 426 A 40BASISPOINT SPREAD ABOVE THE 425S OF OCTOBER 1994 THE MONTHLYPAY CERTIFICATES WITH AN AVERAGE LIFE OF 143 YEARS AND A LEGAL FINAL MATURITY OF NOV 15 1995 DO NOT PAY PRINCIPAL FOR ELEVEN MONTHS THE CERTIFICATES WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE 403 MILLION CLASS A4 CERTIFICATES WERE PRICED AS 47S AT 99 30/32 TO YIELD 4774 A 40BASISPOINT SPREAD ABOVE THE TREASURY'S INTERPOLATED WHENISSUED TWOYEAR TO THREEYEAR NOTES THE MONTHLYPAY CERTIFICATES WITH A 249YEAR AVERAGE LIFE AND A LEGAL FINAL MATURITY OF MAY 15 1997 DO NOT PAY PRINCIPAL FOR 23 MONTHS THE CERTIFICATES WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE 58579 MILLION CLASS B CERTIFICATES WERE PRICED AS 47S AT 98 22/32 TO YIELD 5327 A 95BASISPOINT SPREAD ABOVE THE TREASURY'S INTERPOLATED WHENISSUED TWOYEAR TO THREEYEAR NOTES THE MONTHLYPAY CERTIFICATES WITH A 245YEAR AVERAGE LIFE AND A LEGAL FINAL MATURITY OF MAY 15 1997 DO NOT PAY PRINCIPAL FOR ELEVEN MONTHS THE CERTIFICATES WERE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P CREDIT SUPPORT FOR THE DEAL CONSISTS OF THE 3 IN CLASS B CERTIFICATES AND A 375 RESERVE ACCOUNT THAT WAS 100 FUNDED AT CLOSING THE B CLASS IS SUPPORTED BY THE RESERVE ACCOUNT THE SELLER IS CAPITAL AUTO RECEIVABLES CORP THE SERVICER IS GMAC A UNIT OF GENERAL MOTORS CORP ABBEY NATIONAL TREASURY SERVICES LTD UK PARENT 500 MILLION OF 7 3/4 EUROBONDS DUE JUNE 23 1998 REOFFERED AT 9966 VIA UBS LTD AND SG WARBURG SECURITIES LTD BONDS YIELD 783 AT REOFFER SPREAD 60 BASIS POINTS OVER 7 1/4 UK GILT DUE 1998 GUARANTOR ABBEY NATIONAL PLC FEES 0275 POINT AEGON NV NETHERLANDS 100 MILLION SWISS FRANCS OF 4 3/4 PUBLIC BONDS DUE JULY 1 1998 PRICED AT 102 1/8 VIA SWISS BANK CORP FEES 1625 POINTS ASIAN DEVELOPMENT BANK SUPRANATIONAL 500 MILLION OF 6 3/8 EUROBONDS DUE JUNE 8 2003 REOFFERED AT 9928 VIA JP MORGAN SECURITIES LTD AND LEHMAN BROTHERS INTERNATIONAL YIELD 648 AT REOFFER SPREAD 23 BASIS POINTS ABOVE 6 1/4 US TREASURY NOTE DUE 2003 FEES 0325 POINT BANCO NACIONAL DE COMERCIO EXTERIOR MEXICO 10 BILLION SPANISH PESETAS OF 1265 MATADOR BONDS DUE JUNE 21 1998 AT ISSUE PRICE 100 5/8 VIA BANCO SANTANDER DE NEGOCIOS YIELD AT COMANAGERS' BREAKEVEN PRICE 129 ANNUAL SPREAD 224 BASIS POINTS ABOVE 1145 SPANISH GOVERNMENT NOTE DUE 1998 GUARANTOR UNITED MEXICAN STATES FEES 1625 POINTS BRISTOL & WEST BUILDING SOCIETY UK 75 MILLION OF 10 3/4 EUROBONDS DUE JUNE 22 2018 AT ISSUE PRICE 101476 VIA HOARE GOVETT SECURITIES LTD AND BARING BROTHERS & CO REOFFERED AT 99601 TO YIELD 1052 SEMIANNUAL SPREAD 190 BASIS POINTS ABOVE 8 3/4 UK GILT DUE 2017 FEES 25 POINTS CONTIGUMMI FINANCE BV GERMAN PARENT 250 MILLION MARKS OF 7 1/2 EUROBONDS DUE JULY 6 2000 WITH EQUITYWARRANTS ATTACHED AT ISSUE PRICE 12025 VIA DEUTSCHE BANK AG GUARANTOR CONTINENTAL AG EACH 5000MARK BOND HAS 24 WARRANTS ATTACHED EXERCISABLE FROM AUG 5 1993 TO JULY 6 2000 TO PURCHASE SHARES IN CONTINENTAL AG AT 199 MARKS APIECE A 226 PREMIUM ABOVE MONDAY'S CLOSING SHARE PRICE OF 1945 MARKS FEES 275 POINTS DE NATIONALE INVESTERINGSBANK NV NETHERLANDS 100 MILLION CANADIAN DOLLARS OF 7 1/2 EUROBONDS DUE JULY 6 1998 AT ISSUE PRICE 101255 VIA RBC DOMINION SECURITIES INTERNATIONAL LTD REOFFERED AT 9968 TO YIELD 758 ANNUAL SPREAD 45 BASIS POINTS ABOVE 6 1/2 CANADIAN GOVERNMENT NOTE DUE SEPTEMBER 1998 FEES 1875 POINTS GENERAL ELECTRIC CAPITAL CORP US PARENT 100 MILLION SWISS FRANCS OF 4 3/4 PRIVATELY PLACED NOTES DUE JUNE 2 1998 PRICED AT 101 7/8 THROUGH LEAD MANAGER BANQUE PARIBAS SUISSE FEES 15 POINTS LKB BADENWUERTTEMBERG FINANCE NV GERMAN PARENT 150 BILLION ITALIAN LIRE OF 10 3/8 EUROBONDS DUE JUNE 21 2000 AT ISSUE PRICE 1015 VIA BANCA NAZIONALE DEL LAVORO YIELD AT COMANAGERS' BREAKEVEN PRICE 1045 ANNUAL GUARANTOR LKB BADENWUERTTEMBERG FEES 1875 POINTS NISSAN INTERNATIONAL FINANCE JAPAN PARENT 125 MILLION OF FLOATINGRATE NOTES DUE JUNE 2 2006 REOFFERED AT PAR VIA IBJ INTERNATIONAL LTD INTEREST FLOATS AT 0375 POINT ABOVE SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS KEEPWELL AGREEMENT WITH PARENT NISSAN MOTOR CO FEES NOT DISCLOSED 9305260017 930526 NOTABLE & QUOTABLE FROM MONDAY'S ADDRESS TO THE GRADUATING CLASS OF YALE UNIVERSITY'S SCHOOL OF MEDICINE DELIVERED BY DR HOWARD SPIRO PROFESSOR OF MEDICINE TECHNOLOGY HAS VASTLY IMPROVED THE WORLD SINCE MY GRADUATION IN 1947 BUT IT HAS MADE MEDICINE MORE VISUAL FOCUSING ON DISEASE WHAT THE DOCTOR CAN FIND RATHER THAN ON ILLNESS WHAT THE PATIENT CAN TELL THE FIRST ULTRASOUNDS AND CT SCANS OF THE 1970S SEEM LAUGHABLY IMPRECISE NOW LIKE THE LATE NIGHT WEATHER MAPS ON TV BUT THEIR VIEWS OF INTERNAL ANATOMY COMPLETELY CHANGED HOW WE PHYSICIANS REGARD OUR PATIENTS OR TO BE MORE PRECISE THEIR ORGANS THE IMAGES THE ICONS REALLY OF TECHNOLOGY HAVE LET THE EYE DOMINATE DEFINITIONS OF DISEASE THE EAR HAS SUBSIDED INTO SILENCE THE GOLDEN AGE OF MEDICINE IS YET TO COME AND WILL ALWAYS BE JUST AHEAD THANKS TO SCIENCE AND TECHNOLOGY ON THE PERSONAL LEVEL HOWEVER MATTERS HAVE WORSENED TECHNOLOGY HAS WIDENED THE GAP BETWEEN PATIENT AND PHYSICIAN HAS MADE MANY DOCTORS FEEL LIKE MERE CONDUITS OF POWER NO LONGER HEALING AGENTS BUT SIMPLY PURVEYORS OF PILLS OR WIELDERS OF SCALPELS RULERS OUT OF DISEASE ANYWAY TEAM MEDICINE HAS DIFFUSED PERSONAL RESPONSIBILITY AND LESSENED THE IMPORTANCE OF PERSONAL VIRTUE OR CHARACTER IN OUR HOSPITALS DOCTORS ARE SO BUSY DOING SOMETHING THAT THEY HAVE LITTLE TIME FOR CONTEMPLATION WHEN THEY ARE NOT TAKING CARE OF PATIENTS THEY ARE FILLING OUT FORMS I USED TO PRIDE MYSELF ON SHORT CONSULTATION NOTES BUT NOW I AM WARNED THEY DO NOT DEMONSTRATE THE REQUISITE TORMENT TO JUSTIFY OUR FEES TO MEDICARE AND SO I DICTATE SEVERAL PAGES TO SATISFY THE REQUIREMENTS I TAKE A LITTLE CONSOLATION IN THE HOPE THAT MAYBE ANOTHER SECRETARY WILL GET A JOB TYPING MY BLOATED VERBIAGE 9305260016 930526 SHORT INTEREST IN OTC STOCKS HITS NEW HIGH TOTAL WAS 5251 MILLION SHARES AS OF MIDMAY UP 31 FOR THE MONTH BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST AMONG OVERTHECOUNTER STOCKS BOTH LARGE AND SMALL ROSE 31 TO ANOTHER RECORD LEVEL IN THE MONTH ENDED IN MIDMAY AFTER A SIMILAR RISE THE MONTH BEFORE THE TOTAL SHORT INTEREST LEVEL HAS CLIMBED SINCE LAST JULY WHEN IT PASSED THE 400 MILLIONSHARE MARK FOR THE RECENT TRADING MONTH TOTAL SHORT INTEREST WAS 5251 MILLION SHARES UP FROM 5091 MILLION AT MIDAPRIL DESPITE THE OVERALL INCREASE IN OTC SHORT INTEREST PROFESSIONAL SHORTSALE MANAGERS HAVEN'T FARED WELL THIS MONTH SAID HARRY STRUNK AN INVESTMENT CONSULTANT IN PALM BEACH FLA WHO TRACKS PROFESSIONAL SHORT SELLERS MAY HAS BEEN A LITTLE BIT TOUGH ON SHORT SELLERS HE SAID THERE'S BEEN SOME DRIVING UP OF GOGO STOCKS SUCH AS SNAPPLE BEVERAGE CORP AND PREMIUM COFFEE MARKETER STARBUCKS CORP SO FAR THE GROUP OF PROFESSIONAL SHORTSELLERS HE TRACKS ARE DOWN ABOUT 4 IN MAY ON INVESTMENT RESULTS ANOTHER THING WORKING AGAINST THE SHORTSELLERS IS THAT THE NASDAQ COMPOSITE STOCK PRICE INDEX HAS COME BACK IN RECENT WEEKS TO NEAR THE 700 LEVEL JUST BELOW ITS RECORD OF 70885 SET EARLIER THIS YEAR THE INDEX FINISHED YESTERDAY AT 69504 SHORTSELLERS HOPE TO PROFIT BY BORROWING STOCK TO SELL BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE TO RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE SELFREGULATORY AGENCY THAT OPERATES THE NASDAQ COMPUTERIZED SYSTEM ON WHICH ABOUT 3900 OTC ISSUES TRADE COMPILES SHORTINTEREST DATA IN TWO CATEGORIES THE APPROXIMATELY TWOTHIRDS AND GENERALLY BIGGEST NASDAQ STOCKS THAT TRADE ON THE NATIONAL MARKET SYSTEM AND THE OTHER GENERALLY SMALLER STOCKS THAT DON'T ALTHOUGH A SUBSTANTIAL SHORT POSITION REFLECTS HEAVY SPECULATION THAT A STOCK'S PRICE WILL DECLINE SOME INVESTORS CONSIDER AN INCREASE IN SHORT INTEREST BULLISH BECAUSE THE BORROWED SHARES EVENTUALLY MUST BE BOUGHT BACK SOME SHORT INTEREST DOESN'T REFLECT ANY OPINION ON A STOCK AT ALL BUT SHOWS UP AS PART OF ANOTHER STRATEGY SUCH AS ARBITRAGE OR DIVIDEND CAPTURE AMONG THE LARGEST AND MOST FREQUENTLY TRADED STOCKS THOSE ON THE NATIONAL MARKET SYSTEM OF THE OTC SOME CABLE AND TELECOMMUNICATIONS COMPANIES CONTINUED TO HAVE HIGH SHORT POSITIONS AND DELL COMPUTER CORP THE OTC LEADER WITH NEARLY 76 MILLION SHARES HELD SHORT LOOKED LIKE A SHORTSELLER'S DREAM YESTERDAY ITS SHARES LOST NEARLY A QUARTER OF THEIR MARKET VALUE CLOSING DOWN 7375 TO 2475 ON VOLUME OF MORE THAN 13 MILLION SHARES DELL BASED IN AUSTIN TEXAS REPORTED SHARPLY LOWER FIRSTQUARTER EARNINGS CITING HIGH COSTS OF DEVELOPING ITS NOTEBOOK COMPUTERS DELL'S SHORT INTEREST HAS RISEN SUBSTANTIALLY IN THE LAST FEW MONTHS CABLE CONCERN TELECOMMUNICATIONS INC SHOWED SHORT INTEREST OF 61 MILLION SHARES UP FROM NEARLY 59 MILLION THE MONTH BEFORE COMCAST CORP ANOTHER CABLE COMPANY THAT ALSO HAS CELLULAR TELEPHONE BUSINESSES HAD THE LARGEST SINGLE INCREASE 12 MILLION SHARES BRINGING ITS MIDMAY TOTAL TO NEARLY 51 MILLION SHARES TELECOMMUNICATIONS AND COMCAST HAVE BEEN AMONG THE HIGHEST SHORTPOSITION OTC COMPANIES FOR SOME TIME SNAPPLE ALSO EXPERIENCED A SHARP INCREASE IN SHORT INTEREST TO 28 MILLION SHARES AT MIDMAY FROM 16 MILLION AT MIDAPRIL SHORT SELLERS HAVE BEEN HOPING FOR A SLIDE IN SNAPPLE WHICH AT CURRENT MARKET PRICES ABOVE 50 A SHARE IS SELLING AT MORE THAN 25 TIMES ITS DECEMBER INITIAL PUBLIC OFFERING PRICE OF 20 AMONG LARGER ISSUES SHORT INTEREST IN 2833 NMS STOCKS AS OF MIDMAY WAS 493551771 SHARES COMPARED WITH 482090498 SHARES IN 2802 ISSUES FOR THE PERIOD ENDED IN MIDAPRIL SHORT INTEREST IN 1057 SMALLER ISSUES WAS 31520444 SHARES FOR THE MONTH COMPARED WITH 27014358 SHARES IN 1027 ISSUES A MONTH EARLIER THE NATIONAL MARKET SYSTEM'S SHORTINTEREST RATIO IN MIDMAY WAS DOWN SLIGHTLY TO 248 FROM 250 A MONTH EARLIER WHILE THE SHORTINTEREST RATIO FOR OTHER OTC ISSUES ROSE TO 082 FROM 077 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION IS A MEASURE OF NEGATIVE TRADER SENTIMENT SOME ANALYSTS SUGGEST HOWEVER THAT THE RATIO HAS WEAKENED IN VALUE AS AN INDICATOR BECAUSE OPTIONS AND OTHER PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS 9305260015 930526 LEISURE & ARTS OPERA THE UNDERWORLD REVISITED BY HEIDI WALESON CAMBRIDGE MASS MONTEVERDI AND GLUCK TRIED THEIR HAND AT THE ORPHEUS MYTH NOW PHILIP GLASS HAS DONE THE SAME WITH A HELPING HAND FROM THE GRAVE EXTENDED BY THE SURREALIST FRENCH POET JEAN COCTEAU IN THE GLASS ORPHEE WHICH PREMIERED RECENTLY AT THE AMERICAN REPERTORY THEATER HERE AND RUNS THROUGH JULY 10 IT WILL MOVE TO THE BROOKLYN ACADEMY OF MUSIC THIS FALL THE HERO IS NOT THE GREAT SINGER WHOSE MUSIC RANSOMS A BELOVED WIFE FROM HELL BUT A PETULANT MODERNIST FRENCH POET WITH A BAD CASE OF WRITER'S BLOCK AND A DEATH WISH THE ANCIENT STORY IS TURNED ON ITS HEAD AND DEATH GETS ALL THE BEST TUNES MR GLASS BASED HIS OPERA ON COCTEAU'S 1949 FILM ORPHEE SHOT IN AND AROUND PARIS THE MOVIE TRANSFORMS ORPHEUS INTO A FAMOUS MODERN POET WHOSE POPULARITY MAKES ALL THE OTHER POETS IN THE CAFE HATE HIM A BIT OF A PARALLEL WITH MR GLASS HERE IN THE FILM A MYSTERIOUS AND GLAMOROUS PRINCESS SWEEPS ORPHEUS AWAY IN A ROLLS ROYCE THE PRINCESS TURNS OUT TO BE DEATH AND AS ORPHEUS WATCHES SHE CONDUCTS A NEWLY DEAD YOUNG POET CEGESTE THROUGH A MIRROR INTO THE NEXT WORLD THE PRINCESS'S CHAUFFEUR HEURTEBISE TAKES ORPHEUS HOME WHERE HE IGNORES THE WORRIES OF HIS BOURGEOIS WIFE EURYDICE AND BECOMES OBSESSED WITH THE RADIO OF THE ROLLS WHICH PERIODICALLY EMITS CRYPTIC LINES OF POETRY AND STRINGS OF NUMBERS LIKE THE CODED MESSAGES TRANSMITTED BY THE FRENCH RESISTANCE DURING THE WAR ORPHEUS WRITES DOWN THE POETRY AND BEGINS SUBMITTING IT AS HIS OWN THE MESSAGES IT TURNS OUT ARE BEING SENT BY CEGESTE AT THE BEHEST OF THE PRINCESS WHO HAS FALLEN IN LOVE WITH ORPHEUS AND HAS DECIDED TO GET HIM FOR HERSELF IN THE PROCESS SHE KILLS EURYDICE THEREBY LURING ORPHEUS AIDED BY THE FAITHFUL HEURTEBISE INTO THE NEXT WORLD THE JUDGES OF THE UNDERWORLD PARDON THE PRINCESS FOR NOW AND RETURN EURYDICE AND ORPHEUS TO LIFE ON THE CONDITION THAT ORPHEUS NEVER LOOKS AT HIS WIFE AGAIN HE DISOBEYS AND EURYDICE DISAPPEARS ORPHEUS IS THEN KILLED AND REUNITED WITH THE PRINCESS BUT TO INSURE THE POET'S IMMORTALITY THE PRINCESS RETURNS BOTH ORPHEUS AND EURYDICE TO LIFE CONDEMNING HERSELF AND HEURTEBISE TO OBLIVION THIS SCENARIO WHICH MR GLASS HAS USED ALMOST LINE FOR LINE THE OPERA IS SUNG IN FRENCH WITH SUPERTITLES AROUSED THE COMPOSER'S DRAMATIC INSTINCTS ITS TIGHTNESS AND QUICK CINEMATIC PACING LEAVE NO ROOM FOR SELFINDULGENCE OR THE KIND OF STASIS THAT MADE THE VOYAGE MR GLASS'S RECENT EFFORT AT THE METROPOLITAN OPERA SO OVERBLOWN AND UNSATISFACTORY INSTEAD WE GET A MUSICAL VERSION OF THE FILM WITH THE DIALOGUE SET AS SUNG LINES THERE ARE NO ARIAS ENSEMBLES OR ORCHESTRAL INTERLUDES AND WHILE A FEW INDIVIDUAL MUSICAL MOMENTS DO STAND OUT MR GLASS'S ENERGETIC INSISTENT SCORE CREATES AN OVERALL ATMOSPHERE AS DEBUSSY DOES IN PELLEAS ET MELISANDE THIS URGENCY FINALLY MAKES THE IMPACT OF THE OPERA QUITE DIFFERENT FROM THAT OF COCTEAU'S FILM UNDER THE DIRECTION OF MARTIN GOLDRAY THE 12MEMBER ORCHESTRA HEAVY ON WOODWINDS CREATED A GLASSIAN SOUND WORLD THERE IS A BRIGHT JAZZY BEGINNING IN THE POETS' CAFE AND A GENTLE WOODWIND AND KEYBOARD QUOTE FROM GLUCK'S VERSION OF THE OPERA AS THE PRINCESS WATCHES ORPHEUS AND EURYDICE SLEEP BUT FOR THE MOST PART THE SCORE IS PURE GLASS TONAL YET EDGY BUILDING UP TO DRAMATIC MOMENTS IN A TIGHT AND ALMOST VISUAL MANNER THE ACTUAL LOOK OF THE OPERA IS ALSO GLASSIAN HARDEDGED CLEAR AND GEOMETRIC VERY DIFFERENT FROM COCTEAU'S MISTY AND HAUNTED LOCATIONS OF 45 YEARS AGO FOR MR GLASS'S OPERA THE SET DESIGNER ROBERT ISRAEL AND LIGHTING DESIGNER PAT COLLINS HAVE CREATED STARK WHITE TILTED PLANES WHICH MOVE ABOUT TO CREATE DIFFERENT SCENES WHEN CHARACTERS PASS THROUGH THE MIRROR INTO LA ZONE AS COCTEAU CALLS THE NOMAN'S LAND BETWEEN THIS WORLD AND THE NEXT A MANTELPIECE SWINGS BACKWARD AND A HUGE KLIEGL LIGHT FLANKED BY TALL FIGURES IN MOTORCYCLE RIG DEATH'S ASSISTANTS SHINES OUT AT THE AUDIENCE CATHERINE ZUBER'S COSTUMES ECHO THE BLACK AND WHITE OF THE FILM BUT THE ELEGANTLY ATTIRED PRINCESS GETS AN EMERALD COAT IN ONE SCENE HER JUDGES IN THE UNDERWORLD ARE IN SCARLET TIME HAS ALSO WEATHERED THE COCTEAU CHARACTERS THE FILM'S ORPHEUS PLAYED BY COCTEAU'S LOVER THE ACTOR JEAN MARAIS IS OMNIPRESENT AND OBNOXIOUS THE GLASS ORPHEUS EUGENE PERRY IS A BEMUSED CIPHER BUT MUSIC GIVES NEW DEPTH TO THE DEAD CHARACTERS AND WITH MR GLASS'S HELP THEIR YEARNINGS AND RENUNCIATIONS TURN OUT TO BE MORE INTERESTING THAN THOSE OF THE LIVING THE OPERA'S HEURTEBISE RICHARD FRACKER IS A SENSITIVE TENOR WHOSE LOVE FOR EURYDICE ELIZABETH FUTRAL AND LOYALTY TO THE PRINCESS ARE POIGNANT AND HEARTBREAKING THE STRONGEST SCENESTHE KILLING OF EURYDICE THE MEETING OF ORPHEUS AND THE PRINCESS AFTER HER JUDGMENT THE RESURRECTION OF ORPHEUS GO TO THE PRINCESS POWERFULLY SUNG BY WENDY HILL WHOSE TRANSGRESSIONS AND PASSIONS ASSAULT US IN SOARING VOCAL LINES AND SURGING ORCHESTRAL URGENCY THERE IS NO LOVE HERE SHE TELLS ORPHEUS SADLY WE GO FROM JUDGMENT TO JUDGMENT COCTEAU'S FILM BY CONTRAST WAS MORE INTERESTED IN IDEAS THAN PEOPLE HIS ORPHEUS IS A POET IN LOVE WITH HIS DEATH AND THE FILM'S CODA IN WHICH ORPHEUS AND EURYDICE WAKE UP IN BED TOGETHER THEIR ORDEAL AND THEIR DIFFERENCES FORGOTTEN IS PLAYED FOR LAUGHS BUT MR GLASS'S MUSIC AND FRANCESCA ZAMBELLO'S FOCUSED DIRECTION OF THE EXCELLENT CAST HAVE MADE THE STORY LESS ABSTRACT AND MORE PERSONAL AT THE END OF THE OPERA ORPHEUS FINALLY APPEARS TO HAVE WARMED TOWARD HIS WIFE AND BEGINS TO SEEM AS ALIVE AS THE DEAD CHARACTERS QUESTIONS ABOUT IMMORTALITY FADE AWAY PRINCESS AND HEURTEBISE GO OFF TO MEET THEIR FATE MS WALESON IS A NEW YORK MUSIC WRITER 9305260014 930526 REVIEW & OUTLOOK EDITORIAL ASIDES GIVING WHEN IT HURTS IN 1992 THE LAST OF THE DOZEN YEARS OF GREED SO BELABORED BY OUR NEW PRESIDENT AMERICANS DONATED 124 BILLION TO CHARITY EASILY THE MOST EVER AND A GREATER SHARE OF THEIR INCOME THAN IN ANY YEAR SINCE 1963 BEFORE THE GREAT RISE OF THE WELFARE STATE NEARLY 102 BILLION CAME DIRECTLY FROM INDIVIDUALS IN THAT YEAR OF LINGERING HARDSHIP FOR SO MANY IT WILL BE INTERESTING TO SEE HOW THE NEW COVENANT YEARS MATCH UP TO THIS PERFORMANCE ONE CAN GUESS IT HAS BEEN MADE EXPLICIT BY THE WHITE HOUSE THAT IT WISHES TO PUNISH THOSE WHOM IT SAYS BENEFITED DURING THE '80S AT THE EXPENSE OF ALL OTHERS AND THAT THESE FOLKS WILL NOW BE MADE TO PAY VIA SIGNIFICANTLY HIGHER MARGINAL TAX RATES WE'VE LONG ARGUED THAT SUCH RATES ARE A DISINCENTIVE TO PRODUCE AND SAVE AND ONE MAY BE SURE THAT THEY ARE ALSO A DISINCENTIVE TO DONATE NO MATTER UNDER THE CLINTON RUBRIC THESE POINTS OF LIGHT WILL BE THE RESPONSIBILITY OF STATE AUTHORITY 9305260013 930526 TECHNOLOGY & HEALTH SENATE COMMITTEE APPROVES AUCTION OF PUBLIC AIRWAVES TO RAISE 72 BILLION BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURANL WASHINGTON THE SENATE COMMERCE COMMITTEE APPROVED A BILL DESIGNED TO RAISE 72 BILLION OVER THE NEXT FIVE YEARS BY AUCTIONING PART OF THE PUBLIC AIRWAVES THE MEASURE SIMILAR TO ONE THAT PASSED THE HOUSE ENERGY AND COMMERCE COMMITTEE EARLIER THIS MONTH ALSO TRANSFERS 200 MEGAHERTZ OF THE RADIO SPECTRUM FROM GOVERNMENT USE TO THE PRIVATE SECTOR YESTERDAY'S APPROVAL BY VOICE VOTE MARKS A TURNAROUND FOR DEMOCRATIC LEADERS WHO HAVE LONG OPPOSED COMPETITIVE BIDDING FOR THE AIRWAVES A NOTION THAT FIRST SURFACED IN THE MID1980S DURING THE REAGAN ADMINISTRATION THE SENATE VERSION ORIGINALLY SET ASIDE 30 MEGAHERTZ OF THE RADIO SPECTRUM FOR AUCTIONS THAT TRIAL WOULDN'T RAISE MUCH MONEY HOWEVER SO THE NUMBER WAS INCREASED TO 180 MEGAHERTZ THAT AMOUNT ALSO WAS EXPECTED TO FALL BELOW THE BUDGET TARGET BY THE TIME THE MEASURE CLEARED THE COMMERCE COMMITTEE THE LIMITS WERE SCRAPPED THE CONCERN HAS BEEN THAT AUCTIONS WOULD BENEFIT LARGE CORPORATIONS WITH DEEP POCKETS AND EXCLUDE MINORITIES AND SMALL COMPANIES WITH INNOVATIVE TECHNOLOGIES UNDER THE SENATE LEGISLATION REGULATORS WOULD BE REQUIRED TO DEVISE WAYS TO ENSURE THAT THE BIDDING PROCESS DOESN'T LEAVE OUT SMALL FIRMS WITH INNOVATIVE TECHNOLOGIES MUCH OF THE 72 BILLION IS EXPECTED TO COME FROM AUCTIONING PART OF THE SPECTRUM FOR THE NEXT GENERATION OF WIRELESS PHONES AND HANDHELD COMPUTERS KNOWN AS PERSONAL COMMUNICATIONS SERVICES THE FEDERAL COMMUNICATIONS COMMISSION IS EXPECTED TO DECIDE LATER THIS YEAR OR EARLY NEXT YEAR HOW MUCH OF THE RADIO SPECTRUM THESE NEW SERVICES WOULD BE ALLOCATED BOTH VERSIONS EXEMPT BROADCAST LICENSES FROM COMPETITIVE BIDDING A POINT VIGOROUSLY ADVOCATED BY BROADCASTERS WHO FEARED THEY COULD WIND UP PAYING HUGE SUMS WHEN THEIR LICENSES COME UP FOR RENEWAL THE BILLS ARE TO BE ROLLED INTO LARGER DEFICITREDUCTION MEASURES CALLED THE BUDGET RECONCILIATION THE HOUSE IS SCHEDULED TO TAKE UP ITS VERSION OF THE RECONCILIATION MEASURE TOMORROW THE SENATE PLANS TO ADDRESS THE MATTER NEXT MONTH RADIO SPECTRUM FOR NEW SERVICES CURRENTLY IS AWARDED BY LOTTERIES THAT HAVE BEEN PLAGUED BY FRAUD AND BY SPECULATORS NOT INTERESTED IN BUILDING COMMUNICATIONS SYSTEMS RATHER THESE SPECULATORS WANT HANDSOME PROFITS FROM SELLING THEIR LICENSES THE SENATE BILL REQUIRES CERTAIN MOBILE SERVICES USUALLY USED FOR DISPATCH SERVICES AND EMERGING POCKETPHONE SERVICES TO BE REGULATED AS COMMON CARRIERS THE CATEGORY THAT INCLUDES CELLULAR PHONE COMPANIES AND LANDLINE TELEPHONE COMPANIES IN THE SAME PROVISION LAWMAKERS RANKLED STATE REGULATORS BY GENERALLY BARRING STATES FROM REGULATING CELLULAR CARRIERS AND OTHER MOBILE SERVICE PROVIDERS WHEN THREE OR MORE COMPANIES COMPETE THAT WOULD EFFECTIVELY HALT THE REGULATION OF CELLULAR TELEPHONE RATES IN CALIFORNIA THE ONLY STATE THAT VIGOROUSLY REGULATES THEM MICHELLE HARRIS ASSISTANT DIRECTOR OF CONGRESSIONAL RELATIONS FOR THE NATIONAL ASSOCIATION OF REGULATORY UTILITY COMMISSIONERS SAID DIFFICULTIES COULD ARISE IF AS EXPECTED WIRELESS SERVICES BEGIN TO REPLACE TRADITIONAL TELEPHONE SERVICE IT IS HARD TO PREDICT WHAT THE TELECOMMUNICATIONS LANDSCAPE WILL LOOK LIKE IN THE FUTURE SHE SAID DOWN THE ROAD THIS PROVISION COULD CREATE MANY PROBLEMS SEPARATELY THE SENATE COMMERCE COMMITTEE APPROVED THE NOMINATION OF LARRY IRVING A FORMER STAFF MEMBER OF THE HOUSE TELECOMMUNICATIONS PANEL TO BE THE COMMERCE DEPARTMENT'S ASSISTANT SECRETARY FOR COMMUNICATIONS AND INFORMATION THE FULL SENATE IS EXPECTED TO APPROVE THE NOMINATION SOON 9305260012 930526 INTERNATIONAL UNITED NATIONS IS FRUSTRATED BY ITS ROLE IN CAMBODIA EFFORTS FAIL TO CONTAIN LOCAL FACTIONS BEFORE HISTORIC NATIONAL ELECTIONS BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL SVAY RIENG CAMBODIA IN THIS SLEEPY PROVINCIAL CAPITAL THE NEW WORLD ORDER HAS MET ITS MATCH THE UNITED NATIONS PULLED ITS WHITE TRUCKS INTO TOWN EARLY LAST YEAR CHARGED WITH TAKING OVER AN ENTRENCHED LOCAL GOVERNMENT AND KEEPING IT OUT OF POLITICS AHEAD OF HISTORIC NATIONAL ELECTIONS INSTEAD THE LOCAL AUTHORITIES KEPT POWER AND TOOK OVER POLITICS THE REVERSAL OF THE OUTSIDE WORLD'S WILL IS STRIKING STATE OFFICES NOW DOUBLE AS CAMPAIGN CENTERS FOR THE CAMBODIAN PEOPLE'S PARTY THE POLITICAL ARM OF PRIME MINISTER HUN SEN'S COMMUNIST REGIME SOLDIERS AND POLICEMEN ARE VERITABLE CPP BILLBOARDS IN THEIR PARTYLOGO TSHIRTS WE DON'T KNOW WHO'S ADMINISTERING THE COUNTRY UNTAC UNITED NATIONS TRANSITIONAL AUTHORITY OR THE CPP COMPLAINS DHIRAJLAL NAIK A 43YEAROLD ZIMBABWEAN WHO HAS SPENT 10 MONTHS AS UNTAC'S ELECTORAL DIRECTOR IN THIS PROVINCE JUTTING INTO VIETNAM AND HAVING NO DEFINED POWERS WE HAVEN'T BEEN ABLE TO CREATE A FAIR SYSTEM IN CAMBODIA WITH A NEARLY 3 BILLION BUDGET AND SOME 22000 PEOPLE FROM 44 COUNTRIES PACKED INTO AN UNDEVELOPED NATION THE SIZE OF MISSOURI UNTAC WAS SUPPOSED TO BE A PROTOTYPE FOR POSTCOLD WAR MULTILATERAL EFFORTS TO RESTORE SHATTERED SOCIETIES TODAY CAMBODIA TOMORROW SOMALIA OR PERHAPS BOSNIAHERZEGOVINA INSTEAD CONSTRAINED BY AN AMBIGUOUS MANDATE AND OUTFOXED BY SOME CAMBODIAN FACTIONS THE UN'S BIGGESTEVER MISSION IS AN OBJECT LESSON IN THE DIPLOMATIC MILITARY POLITICAL AND EVEN ADMINISTRATIVE OBSTACLES TO IMPOSING DEMOCRACY ON DISORDER IF WE'RE A MODEL SAYS A SENIOR UNTAC OFFICIAL WE'RE A MODEL OF WHAT TO AVOID TAKING A PAGE FROM CAMBODIA'S BOOK OF REGRETS UN FORCES THAT WERE RECENTLY SENT TO MOZAMBIQUE PLAN TO CORRAL AND DISARM RIVAL FORCES IN THAT TROUBLED AFRICAN COUNTRY BEFORE PUTTING ELECTION OFFICIALS ON THE GROUND SOMETHING UNTAC DIDN'T DO DESPITE ALL THE PROBLEMS UNTAC HAS SCORED ONE SUCCESS GETTING CAMBODIA'S WARWEARY PEOPLE TO TURN OUT TO VOTE IN THE FIRST THREE DAYS OF VOTING THAT STARTED SUNDAY MORE THAN FOUR MILLION OR 85 OF THE 47 MILLION CAMBODIANS UNTAC REGISTERED LAST YEAR CAST BALLOTS FOR A NEW NATIONAL ASSEMBLY SO CONFIDENT WERE PEOPLE OF SECRET BALLOTING PROCEDURES THAT VILLAGERS FROM SOME REMOTE VIOLENCETORN AREAS WALKED TWO DAYS TO REACH POLLING PLACES OTHER CAMBODIANS TOO OLD OR DISABLED TO WALK SHOWED UP AT A PHNOM PENH POLLING PLACE IN THE ARMS OF RELATIVES WITHIN THREE MONTHS ACCORDING TO UNTAC PLANS THE NEW 120MEMBER ASSEMBLY WILL DRAFT A CONSTITUTION GIVING CAMBODIA ITS FIRST FULLY DEMOCRATIC GOVERNMENT SINCE IT DECLARED INDEPENDENCE FROM FRANCE IN 1953 IT IS ALSO LIKELY TO RESTORE 70YEAROLD PRINCE NORODOM SIHANOUK AS HEAD OF STATE A POST HE LOST IN A 1970 COUP BUT EVERYTHING GOING ACCORDING TO UNTAC PLANS IN ITSELF WOULD BE A FIRST SINCE ITS INCEPTION ALMOST EVERYTHING UNTAC HAS PLANNED HAS BEEN COMPROMISED OR DELAYED EVEN THE APPOINTMENT OF A TOP UN OFFICIAL FORMER DISARMAMENT EXPERT YASUSHI AKASHI TO HEAD UNTAC DIDN'T COME UNTIL THREE MONTHS AFTER CAMBODIA'S FOUR MAIN FACTIONS SIGNED THE PARIS PEACE ACCORDS IN OCTOBER 1991 MOST OF MR AKASHI'S DEPUTIES WEREN'T PICKED UNTIL THE FOLLOWING SPRING EVEN THOUGH THE OPERATON BY THEN HAD A TIME FRAME OF ONLY 18 MONTHS A MAJOR PROBLEM IS THAT THE WORLD POWERS THAT SIGNED THE PARIS ACCORDS WERE UNWILLING TO ENFORCE THEM WITH MUSCLE OR SANCTIONS CYNICS SAY THE US AND ITS ERSTWHILE COLD WAR RIVALS WANT UNTAC TO PRODUCE AN ELECTED GOVERNMENT MAINLY SO THEY CAN WASH THEIR HANDS OF CAMBODIA'S PROBLEMS UNTAC'S BIGGEST ACCOMPLISHMENT BEFORE THE ELECTION REPATRIATING 370000 REFUGEES FROM CAMPS ON THAILAND'S BORDER AND ABROAD WAS DESCRIBED BY DIPLOMATS AS A GREAT RELIEF THIS MISSION IS DOOMED TO SUCCESS SAYS VLADIMIR A YULIN UNTAC'S RUSSIAN DIRECTOR IN KOMPONG SPEU PROVINCE NEAR PHNOM PENH THERE IS NO ALTERNATIVE THERE IS A FEELING ELECTIONS ARE NOT GOING TO BE FAIR OR VERY EQUAL BUT THE COURSE WILL BE ACCEPTED BY THE INTERNATIONAL COMMUNITY THE US REPRESENTATIVE IN PHNOM PENH CHARLES H TWINING SAYS WASHINGTON IS FULLY COMMITTED TO CAMBODIA'S FULL REHABILITATION CAMBODIA HAS FESTERED IN GLOBAL POLITICS FOR YEARS WITH A VIETNAMESEBACKED COMMUNIST GOVERNMENT FIGHTING AN INTERNATIONALLY RECOGNIZED COALITION OF INSURGENT GROUPS THAT INCLUDED THE CHINESESUPPORTED KHMER ROUGE THE FIVE PERMANENT MEMBERS OF THE UN SECURITY COUNCIL THE US RUSSIA CHINA FRANCE AND BRITAIN ALONG WITH JAPAN AND THE ASIAN POWERS THAT ALSO SIGNED THE ACCORDS HOPED UNTAC'S MISSION COULD END THAT STANDOFF QUICKLY AND QUIETLY WITHOUT RESORT TO FORCE BUT DIPLOMATS IN PHNOM PENH SAY THE PARIS ACCORDS ASSUMED THAT THE FOUR LONGWARRING CAMBODIAN FACTIONS THAT SIGNED WOULD ABIDE BY THEM AND MEET DEADLINES FOR DISARMING AND CANTONING TROOPS FORMING POLITICAL PARTIES AND CAMPAIGNING THE UN WAS OFFERING TO HELP CAMBODIANS HELP THEMSELVES SAYS ONE DIPLOMAT HE NOTES THAT THE ABSENCE OF ENFORCEMENT MEASURES MAY HAVE ENTICED THE FACTIONS TO SIGN THE PARIS AGREEMENT IT CERTAINLY ENTICED THEM TO ABROGATE IT WITH JARRING SPEED TO UNTAC'S FRUSTRATION THE MAJOR FORCES UNTAC WAS SUPPOSED TO DISARM AND CANTON BY JUNE 10 LAST YEAR REMAIN ARMED AND AT LARGE ONE THE GOVERNMENT'S ARMY HAS NOW BEEN GRANTED UNTAC APPROVAL TO DEFEND THE POLLS CHIEFLY AGAINST THE OTHER MAIN FORCE THE KHMER ROUGE WHAT WE NEED IS THAT UNTAC SHOULD NOT HANDCUFF US IN FIGHTING THE BANDITS PREMIER HUN SEN SAYS LIKE HUN SEN DIPLOMATS WEREN'T SURPRISED THAT THE KHMER ROUGE DESERTED THE PARIS ACCORDS POL POT THE PARTY'S LEADER REPORTEDLY SAID BEFORE THE AGREEMENTS WERE SIGNED THAT HIS PARTY WOULD NEVER GIVE UP WEAPONS OR TERRITORY THOUGH THE ACCORDS REQUIRED DOING BOTH THE KHMER ROUGE NOW HAS REJECTED UNTAC AND IS WAGING A GUERRILLA WAR INSTEAD OF AN ELECTION CAMPAIGN IF UNTAC CANNOT SOLVE THIS PROBLEM AND THE KHMER ROUGE CAN HOLD ONTO THEIR GUNS UNTAC HAS NO ROLE IN THE WORLDABOLISH IT SAYS AN SON A 66YEAROLD RETIRED FERRY WORKER IN THE DUSTY MEKONG RIVER TOWN OF NEAK LUONG TODAY INDIAN SIKH TROOPS PROTECT NEAK LUONG AND PEOPLE SAY AN OUTRAGE IS HAPPENING UNDER UNTAC'S NOSE THE GOVERNMENT'S USE OF STATE OFFICES TO WIN SUPPORT FOR ITS PARTY THE CPP LIVING IN FEAR IT'S IMPOSSIBLE FOR US TO CAMPAIGN BECAUSE WE LIVE IN FEAR SAYS OUM SAHAN A 44YEAROLD ELECTORAL WORKER FOR FUNCINPEC THE FRENCH ACRONYM FOR THE OPPOSITION ROYALIST PARTY HEADED BY PRINCE SIHANOUK'S SON PRINCE NORODOM RANARIDH PERHAPS BECAUSE IT MAY DO WELL IN THE ELECTION FUNCINPEC'S LOCAL OFFICES HAVE BEEN SHOT UP TWICE IN THE PAST MONTH PRESUMABLY BY CPP GUNMEN OBSERVERS SAY UNTAC SHOULD HAVE BEEN LESS CONCERNED WITH BRINGING BALLOT BOXES TO THE PROVINCES AND MORE CONCERNED WITH BRINGING THE GOVERNMENT INTO LINE UNTAC'S PIONEERING ROLE IN CAMBODIA ISN'T OVER THOUGH IF THE CPP WINS BIG ITS HEAVYHANDED ELECTION METHODS MAY CAUSE OPPONENTS TO CRY FOUL IF IT LOSES SOME PARTIES FEAR THE GOVERNMENT MIGHT REFUSE TO TURN OVER POWER STILL DIPLOMATS EXPECT A NEW NATIONAL ASSEMBLY TO DRAFT A CONSTITUTION AND FORM A GOVERNMENT QUICKLY AFTER THE VOTE THEN PROVIDED THE NEW RULING PARTNERS DON'T INVITE THE KHMER ROUGE INTO GOVERNMENTA POSSIBILITY FUNCINPEC HAS FLOATED CIVIL WAR MAY REIGNITE AND UNTAC WILL HAVE TO DECIDE HOW MUCH RESPONSIBILITY IT HAS TO A GOVERNMENT IT CREATED THE WORLD STILL HAS A RESPONSIBILITY TO SUPPORT THE NEW GOVERNMENT SAYS MR TWINING OF THE US WE WANT TO MAKE SURE THE KILLING FIELDS CANNOT RECUR 9305260010 930526 IBM'S CONTRACT WITH GERSTNER HOLDS COSTLY GUARANTEE PACT BACKS VALUE OF CHAIRMAN'S STOCK AND OPTIONS IN RJR BEFORE THE SHARES PLUNGED BY MICHAEL W MILLER AND JULIE AMPARANO LOPEZ STAFF REPORTERS OF THE WALL STREET JOURNAL THE CIGARETTE WARS COULD FORCE INTERNATIONAL BUSINESS MACHINES CORP TO PAY ITS NEW CHAIRMAN LOUIS V GERSTNER JR A LOT MORE THAN IT EVER EXPECTED IBM'S CONTRACT WITH MR GERSTNER GUARANTEES THE VALUE OF STOCK AND OPTIONS HE HOLDS IN RJR NABISCO HOLDINGS CORP WITH TERMS THAT WOULD COST IBM MORE THAN 8 MILLION IF HE CASHED IN TODAY IBM NEVER DISCLOSED THE GUARANTEE WHEN IT TOLD SHAREHOLDERS ABOUT THE OTHER HEFTY FEATURES OF MR GERSTNER'S COMPENSATION A 2 MILLION SALARY A 15 MILLION BONUS OPTIONS FOR 500000 SHARES AND AN ESTIMATED 5 MILLION PAYMENT TO COVER OTHER FORGONE RJR BENEFITS TERMS OF THE GUARANTEE ARE BURIED IN MR GERSTNER'S CONTRACT WITH IBM WHICH THE COMPUTER COMPANY RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THE GUARANTEE'S DOLLAR BENEFITS HAVE GROWN UNEXPECTEDLY LARGE SAVAGE CIGARETTE PRICECUTTING SENT RJR STOCK PLUNGING ON APRIL 2 JUST ONE DAY AFTER MR GERSTNER QUIT AS CHAIRMAN OF THE TOBACCO AND FOOD COMPANY TO JOIN IBM IBM GUARANTEED MR GERSTNER A PRICE OF 8125 A SHARE FOR A BIG CHUNK OF HIS RJR STOCK AND UNEXERCISED OPTIONS IT MAY NEVER HAVE TO PAY MR GERSTNER IF HE HOLDS ON TO THE STOCK AND OPTIONS LONG ENOUGH TO SEE A RECOVERY IN RJR STOCK BUT BASED ON RJR'S CLOSING PRICE OF 5625 A SHARE YESTERDAY ON THE NEW YORK STOCK EXCHANGE IBM WOULD HAVE TO PAY MR GERSTNER 88 MILLION IF HE CASHED IN HIS HOLDINGS THE CONTRACT ALSO DISCLOSES OTHER NEW DETAILS OF UNCOMMONLY GENEROUS PROVISIONS IBM OFFERED MR GERSTNER THE ARMONK NY COMPANY HIRED MR GERSTNER FOR A NINEYEAR TERM FAR LONGER THAN THE TYPICAL CEO CONTRACT IBM ALSO WILL LET MR GERSTNER HOLD ONTO HIS IBM STOCK OPTIONS FOR THEIR FULL TERM EVEN AFTER HE LEAVES THE COMPANY WITH ONLY A FEW LIMITED EXCEPTIONS NORMALLY EXECUTIVES HAVE A TIGHT DEADLINE ONE YEAR IN TYPICAL CASES TO EXERCISE THEIR OPTIONS AFTER THEY LEAVE A COMPANY YOU'D BE HARDPRESSED TO FIND ANOTHER EXAMPLE OF AN OPTION PACKAGE THIS BIG IN A LARGE COMPANY SAID BRIAN FOLEY A WHITE PLAINS NY COMPENSATION CONSULTANT WHO CLOSELY ANALYZED THE GERSTNER PACKAGE HIS CONCLUSION THE PACKAGE APPEARS TO INVOLVE SUBSTANTIALLY MORE REWARD AND LESS FINANCIAL RISK THAN ORIGINALLY SUGGESTED IBM'S LAVISH TREATMENT OF MR GERSTNER COMES AT AN AWKWARD TIME FOR THE EMBATTLED COMPANY AMID COLLAPSING SALES OF MAINFRAME COMPUTERS IBM HAD A LOSS OF NEARLY 5 BILLION LAST YEAR ITS STOCK PRICE HAS FALLEN IN HALF OVER THE PAST YEAR AND IT HAS LAUNCHED THE FIRST ROUND OF LAYOFFS IN ITS HISTORY MR GERSTNER TOOK SOME HEAT FOR HIS LAVISH PAY PACKAGE AT IBM'S ANNUAL MEETING LAST MONTH IN RESPONSE HE SAID THAT WHEN IBM DIRECTORS SET HIS PAY THEY TOLD HIM WE DON'T WANT YOU TO LEAVE SOMETHING ON THE TABLE WE WILL KEEP YOU WHOLE IN FACT MR GERSTNER IS CONSIDERED AN EXTREMELY TENACIOUS NEGOTIATOR FOR HIS PAY AND BENEFITS WHEN RJR RECRUITED HIM AWAY FROM A TOP JOB AT AMERICAN EXPRESS CO IN 1989 A LATESTAGE DISPUTE ABOUT HIS COMPENSATION NEARLY SQUELCHED THE DEAL MR GERSTNER'S MARCH 1992 TALKS WITH IBM ALSO NEARLY UNRAVELED BECAUSE OF HIS AGGRESSIVE INITIAL DEMANDS ACCORDING TO PARTIES TO THE TALKS THE CONTRACT MR GERSTNER FINALLY SIGNED WAS CONSIDERABLY LESS LAVISH THAN THE ONE HE ORIGINALLY SOUGHT THESE PARTIES SAID IBM WOULDN'T COMMENT ON ITS NEGOTIATIONS WITH MR GERSTNER ASKED ABOUT THE COSTLY GUARANTEE OF MR GERSTNER'S RJR STOCK AND OPTIONS AN IBM SPOKESMAN SAID THE PLUNGE IN RJR STOCK WAS CLEARLY UNANTICIPATED THE SPOKESMAN SAID MR GERSTNER DOESN'T HAVE ANY CURRENT PLANS TO EXERCISE THE OPTIONS WHICH WILL EXPIRE OVER THE NEXT 11 YEARS HIS INTENTION IS NOT TO FORCE OUR HAND HE SAID MR GERSTNER IS STILL AN RJR DIRECTOR AND ISN'T UNDER ANY DEADLINE TO EXERCISE THE OPTIONS IBM SAID IT DIDN'T DISCLOSE THE GUARANTEE IN ITS INITIAL NEWS RELEASE LAST MONTH ABOUT MR GERSTNER'S PAY PACKAGE BECAUSE IT WASN'T A LIABILITY AT THE TIME AS RJR STOCK HADN'T YET PLUMMETED IT'S A LIABILITY EITHER OF ZERO OR OF X' DEPENDING ON TIMING AND MARKET CONDITIONS THE IBM SPOKESMAN SAID THE GUARANTEE COVERS 300000 SHARES OF RJR STOCK THAT MR GERSTNER BOUGHT IN 1992 AND OPTIONS FOR AN ADDITIONAL 32 MILLION SHARES IBM GUARANTEED MR GERSTNER 8125 A SHARE FOR ALL THE SHARES AND OPTIONS COVERED IN THE AGREEMENT 9305260009 930526 BUSINESS BRIEF QUICK & REILLY EXPECTS 45 PROFIT RISE IN ITS 1ST PERIOD DECLARES STOCK PAYOUT NEW YORK QUICK & REILLY GROUP INC THE NATION'S THIRDLARGEST DISCOUNT BROKER SAID IT EXPECTS NET INCOME TO JUMP 45 IN THE FIRST QUARTER ENDING FRIDAY REFLECTING HEAVY STOCKMARKET TRADING BY INDIVIDUAL INVESTORS THE COMPANY ALSO ANNOUNCED A 5 STOCK DIVIDEND PAYABLE JULY 15 TO SHAREHOLDERS OF RECORD JUNE 14 THE FIRST STOCK DIVIDEND SINCE THE COMPANY WENT PUBLIC IN JUNE 1983 QUICK & REILLY CURRENTLY HAS 102 MILLION COMMON SHARES OUTSTANDING IN LAST YEAR'S FIRST QUARTER THE FINANCIAL SERVICES COMPANY REPORTED NET INCOME OF 68 MILLION OR 69 CENTS A SHARE ON REVENUE OF 465 MILLION THOMAS C QUICK PRESIDENT OF QUICK & REILLY INC THE RETAIL BROKERAGE UNIT SAID THE FIRM'S BOTTOM LINE WAS BENEFITING FROM A GROWTH IN NEW BROKERAGE ACCOUNTS AND ALSO AN INCREASE IN TRADING IN EXISTING ACCOUNTS IN APRIL NEW ACCOUNTS WERE UP 25 OVER APRIL 1992 HE SAID WHILE COMMISSION REVENUE WAS UP 45 WE ARE STILL CONTINUING TO SEE HEAVY VOLUMES FROM INDIVIDUAL INVESTORS EXECUTING TRADES SAID LESLIE QUICK III PRESIDENT OF QUICK & REILLY GROUP QUICK & REILLY ALSO SAID IT AGREED TO ACQUIRE THE DISCOUNT BROKERAGE BUSINESS OF SPEAR REES & CO FROM ITS PARENT SPEAR FINANCIAL SERVICES THE COMPANY SAID IT EXPECTS TO COMPLETE THE ACQUISITION IN JUNE BUT DECLINED TO DISCUSS PRICE AND TERMS THE ADDITION OF SPEAR REES WILL HELP BUILD QUICK & REILLY'S PRESENCE IN THE CALIFORNIA MARKET THOMAS QUICK SAID THE ACQUIRED ASSETS INCLUDE 25000 BROKERAGE ACCOUNTS AND BRANCH OFFICES IN SIX CITIES RALEIGH NC AND LA JOLLA RANCHO BERNARDO GLENDALE FRESNO AND SAN FRANCISCO CALIF GOOD QUARTERLY RESULTS FOR DISCOUNT BROKERS GENERALLY PRESAGE SIMILAR GAINS AT FULLSERVICE BROKERAGE FIRMS BUT SOME ANALYSTS ARGUE THAT DISCOUNT BROKERS WHICH RELAY ON INDIVIDUAL INVESTOR ACTIVITY MORE SO THAN FULLSERVICE BROKERS WOULD BE MORE VULNERABLE TO ANY SLACKOFF IN TRADING BY INDIVIDUALS THAT SOME ANALYSTS SEE LIKELY LATER THIS YEAR BUT THOMAS QUICK SAID THAT BOTH QUICK & REILLY AND THE SECURITIES INDUSTRY AS A WHOLE HAVE HAD A GREAT RUN OVER THE LAST 18 MONTHS BECAUSE THE STOCK MARKET HAS BEEN ONE OF THE VERY FEW PLACES FOR INDIVIDUAL INVESTORS TO PLACE THEIR MONEY AT ATTRACTIVE RATES FOR THAT TO CHANGE INTEREST RATES WOULD HAVE TO CLIMB SEVERAL PERCENTAGE POINTS HE SAID 9305260008 930526 TRAVEL OFFICE MESS OTHER BLUNDERS HURT PRESIDENT ON EVE OF HOUSE BUDGET VOTE BY JEFFREY H BIRNBAUM AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON SUDDENLY PRESIDENT CLINTON IS FIGHTING FOR MUCH MORE THAN HIS EMBATTLED ECONOMIC PROGRAM AFTER A DAY OF INTERNAL FINGERPOINTING AND RUMORS AND DENIALS OF A POSSIBLE SENIORLEVEL SHAKEUP MR CLINTON IS STRUGGLING TO REFOCUS AND REGAIN CONTROL OF HIS BELEAGUERED PRESIDENCY AMONG OTHER THINGS THE PRESIDENT IS IN THE EXTRAORDINARY POSITION AFTER ONLY THREE MONTHS IN OFFICE OF HAVING EFFECTIVELY CALLED THE FEDERAL BUREAU OF INVESTIGATION DOWN UPON HIMSELF AND HIS STAFF IN THE FLAP OVER THE FIRING OF SEVEN EMPLOYEES OF THE WHITE HOUSE TRAVEL OFFICE ADDING TO THE APPEARANCE OF DISARRAY THE WHITE HOUSE REVERSED ITSELF YESTERDAY AND REINSTATED FIVE OF THE SEVEN EMPLOYEES PLACING THEM ON PAID LEAVE PENDING THE OUTCOME OF VARIOUS INVESTIGATIONS AS THE ADMINISTRATION STRUGGLES TO RIGHT ITSELF AN EARLY CASUALTY MAY BE LANI GUINIER MR CLINTON'S CHOICE TO BE ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS IN AN APPARENT EFFORT TO RID MR CLINTON OF EXTRA CONTROVERSIES WHITE HOUSE ADVISERS QUIETLY SPREAD THE WORD THAT THE ADMINISTRATION LACKS THE VOTES TO CONFIRM MS GUINIER WHO HAS DRAWN FIRE FOR WRITINGS SUGGESTING MINORITY GROUPS BE GIVEN SPECIAL POLITICAL POWERS TO ENSURE THEY ARE REPRESENTED ADEQUATELY IN DEMOCRATIC PROCESSES MEANWHILE CLINTON ADVISERS ARE PLOTTING A HIGHLEVEL SHAKEUP OF THE WHITE HOUSE STAFF AS A WAY TO BREAK OUT OF ITS POLITICAL TORPOR IN ONE SCENARIO A VETERAN DEMOCRAT OF NATIONAL STATURE WOULD BE BROUGHT IN TO WORK WITH THE CURRENT CHIEF OF STAFF WHILE MARK GEARAN A DEPUTY WOULD BE SWITCHED TO ADMINISTRATIVE DUTIES IN ANOTHER SCENARIO PAUL BEGALA ONE OF THE PRESIDENT'S ACE POLITICAL ADVISERS WHO IS CURRENTLY A CONSULTANT TO THE DEMOCRATIC NATIONAL COMMITTEE WOULD JOIN THE WHITE HOUSE COMMUNICATIONS OFFICE WHILE CURRENT COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS WOULD TAKE A MORE STRATEGIC POSITION BOTH MR BEGALA AND MR STEPHANOPOULOS SAID THEY WERE UNAWARE OF ANY SUCH CHANGES INVOLVING THEM BUT AIDES DESCRIBE MR CLINTON AS FURIOUS OVER STAFF STUMBLES THAT HAVE DAMAGED HIM POLITICALLY ON THE EVE OF THE HOUSE VOTE ON HIS EMBATTLED DEFICITREDUCTION PROGRAM ANOTHER POSSIBLE CHANGE WOULD ALTER THE ASSIGNMENT OF AND PERHAPS DEMOTE DAVID WATKINS THE DIRECTOR OF ADMINISTRATION WHO OVERSAW THE TRAVEL OFFICE THOUGH MR WATKINS IS CLOSE TO THE MANY ARKANSANS WHO HAVE SENIOR POSITIONS IN THE WHITE HOUSE HE IS ALSO SEEN AS NOT PROTECTING THE PRESIDENT FROM THE TRAVEL OFFICE SCANDAL A FURTHER SIGN OF THE DISMAY AND DISARRAY WAS A NEW OUTBREAK OF BLAMEMONGERING OVER JUST WHO WAS RESPONSIBLE FOR THE FIRING OF THE TRAVEL AIDES THERE WERE LEAKS FROM AT LEAST ONE SENIOR WHITE HOUSE POLITICAL OFFICIAL AND FROM OTHERS OUTSIDE THE WHITE HOUSE THAT NEW YORK ATTORNEY SUSAN THOMASES A CONFIDANTE OF HILLARY RODHAM CLINTON WAS DEEPLY INVOLVED IN THE ABRUPT DISMISSAL OF THE OFFICIALS MS THOMASES FIRMLY DENIED ANY INVOLVEMENT AND THE OFFICES OF BOTH MRS CLINTON AND WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY DISMISSED THE REPORT THE OFFICIALS WHO PLANTED THE STORY OFFERED NO EVIDENCE TO BACK UP THEIR CONTENTION FURTHER DEMOCRATS HAVE GROUSED ABOUT THE DAMAGE TO MR CLINTON'S IMAGE FROM HIS ASSOCIATION WITH HOLLYWOOD STARS SUCH AS HIS PAL HARRY THOMASON THE TELEVISION PRODUCER WHO HAS BEEN IN THE THICK OF THE TRAVELOFFICE FIASCO WORKS AND MAKES TELEPHONE CALLS OUT OF SPACE IN THE WHITE HOUSE'S EAST WING DURING HIS FREQUENT VISITS MEANWHILE THE WHITE HOUSE FOUND ITSELF CALLED ON THE CARPET BY ITS OWN ATTORNEY GENERAL JANET RENO OVER HOW IT HANDLED ITS DEALINGS WITH THE FBI THE ATTORNEY GENERAL COMPLAINED TO WHITE HOUSE COUNSEL BERNARD NUSSBAUM THAT THE DIRECT CONTACTS WERE INAPPROPRIATE AND SHOULD HAVE GONE THROUGH ONE OF THE TOP THREE JUSTICE DEPARTMENT OFFICIALS ON INVESTIGATIVE MATTERS WHEN I HEARD ABOUT THE SITUATION I CALLED THE WHITE HOUSE AND I SAID IN THE FUTURE IT WOULD BE BETTER IF THE CONTACT WERE MADE THROUGH THE ATTORNEY GENERAL OR THE DEPUTY OR THE ASSOCIATE ATTORNEY GENERAL MS RENO TOLD REPORTERS THE FBI THE JUSTICE DEPARTMENT AND THE WHITE HOUSE ITSELF OPENED INQUIRIES INTO THE MANNER IN WHICH WHITE HOUSE AIDES BYPASSED ESTABLISHED PROCEDURE TO GET THE FBI TO CHANGE ITS STATEMENT TO DECLARE THAT A CRIMINAL INVESTIGATION WAS WARRANTED IN THE TRAVELOFFICE MESS WHILE HIS ADMINISTRATION WAS STRUGGLING WITH THE PROBLEMS PRESIDENT CLINTON WAS DOING HIS BEST TO DISTANCE HIMSELF FROM THE DECISION TO FIRE THE TRAVEL OFFICE STAFF THE ONLY THING I KNOW IS WE MADE A DECISION TO SAVE THE TAXPAYERS AND PRESS MONEY THAT'S ALL I KNOW THE PRESIDENT TOLD REPORTERS HE REFERRED ALL FURTHER QUESTIONS TO MR MCLARTY WHO HAS ASSUMED RESPONSIBILITY FOR THE MESS AND WHO INCONGRUOUSLY ALSO WAS NAMED TO HEAD THE INTERNAL WHITE HOUSE INVESTIGATION ASSISTING HIM WILL BE BUDGET DIRECTOR LEON PANETTA ON CAPITOL HILL CONGRESSIONAL REPUBLICANS CONTINUED TO ATTACK THE WHITE HOUSE FOR APPEARING TO USE THE FBI FOR POLITICAL PURPOSES SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS ASKED FOR A SENATE JUDICIARY COMMITTEE INQUIRY BUT THAT WAS REBUFFED BY THE PANEL'S DEMOCRATIC CHAIRMAN JOSEPH BIDEN OF DELAWARE WHILE ALL THIS HAS BEEN GOING ON THE WHITE HOUSE HAS BEEN BRACING FOR TOMORROW'S VOTE ON THE DEFICITREDUCTION PLAN DEMOCRATS EMERGING FROM WHITE HOUSE MEETINGS ALL SEEMED TO AGREE THAT THE PRESIDENT HAS TO DO MORE TO PROMOTE HIS ECONOMIC PACKAGE HE'S GOT A GOOD PLAN THERE SAID JAMES CARVILLE A POLITICAL STRATEGIST WHO MET WITH MR CLINTON BRIEFLY AND HE'S GOT TO TALK ABOUT IT MORE JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9305260007 930526 WASHINGTON WATER POWER BONDS SPOKANE WASH WASHINGTON WATER POWER CO SAID IT WILL REDEEM ALL 20 MILLION OUTSTANDING PRINCIPAL AMOUNT OF ITS 7875 SERIES FIRST MORTGAGE BONDS DUE MAY 2003 THE COMPANY SAID IT WILL REDEEM THE BONDS JUNE 18 AT 10291 OF THEIR PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THROUGH JUNE 17 9305260006 930526 SUBWAYS IN JAPAN RUN ON SCHEDULE MOST OF THE TIME DRIVERS RIDERS ARE OBSESSED WITH ARRIVALS DEPARTURES BUT THEY DREAD JUMPERS' BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A SUBWAY TRAIN SLIPS OUT OF HIGASHIGINZA STATION AND INTO A DIM GRAY TUNNEL MOTORMAN OSAMU IGARASHI SITS ERECT IN HIS CHAIR HIS EYES ZEROING IN ON THE SIGNALS AHEAD OBEYING THE RULES HE LEARNED IN DRIVER TRAINING HE POINTS AT EACH SIGN WITH A WHITEGLOVED HAND AND QUIETLY CHANTS THEIR MEANING AUTOMATIC PROCEED HE TWANGS SPEED LIMIT 50 MR IGARASHI EASES THE TRAIN INTO SHINBASHI STATION WHERE HUNDREDS OF WORKERS AND SCHOOLCHILDREN STAND IN TIDY ROWS BEHIND FLOOR MARKINGS THAT INDICATE PRECISELY WHERE THE DOORS WILL OPEN IT IS 51350 PM WE'RE A LITTLE LATE SAYS MR IGARASHI STEALING A GLANCE AT HIS STOPWATCH ABOUT EIGHT SECONDS THAT'S THE TICKET IN THE TOKYO AREA MILLIONS OF RAIL COMMUTERS CAN COUNT ON REACHING THEIR DESTINATION AT PRETTY MUCH THE SAME MINUTE EVERY DAY AND THAT SAYS AS MUCH ABOUT THE JAPANESE AS IT DOES ABOUT THEIR TRAINS SURE THOROUGH MAINTENANCE AND HIGHTECH GIZMOS HELP BUT THE REAL SECRET IS A NATION THAT LOVES TO FOLLOW THE RULES IT'S PEOPLE THAT DELAY THE TRAINS SAYS SHOJI YANAGAWA A SPOKESMAN FOR TOKYO'S EIDAN SUBWAY COMPANY BUT THEN AGAIN IT'S PEOPLE THAT KEEP THE TRAINS RUNNING ON TIME CALL IT THE CULT OF PUNCTUALITY MOTORMEN AND CONDUCTORS WHO WORK THE LATE SHIFT SLEEP AT THE DEPOT AND ARE ROUSED FOR THE MORNING SHIFT BY PILLOWS THAT AUTOMATICALLY INFLATE AT THE APPOINTED TIME TOKYO'S TRAIN SYSTEM IS SO FINELY TUNED THAT IT HAS ELIMINATED ALMOST ALL SOURCES OF EXTENDED DELAY TO THE POINT WHERE A MAJOR CAUSE OF LATENESS IS THE JUMPER OR SUICIDE INITIATION IN THE RITES OF PUNCTILIOUS PASSAGE STARTS EARLY TOKYO ELEMENTARY SCHOOLS TEACH CHILDREN THE BASICS OF TRAIN RIDING IN THE STATIONS RIDERS ARE BOMBARDED WITH MESSAGES IN SCHOOLMARMISH VOICES IT'S DANGEROUS SO PLEASE DON'T RUN ONTO THE TRAINS PEOPLE WHO RUSH OFTEN GET STUCK IN THE CLOSING DOORS WHICH DELAYS DEPARTURE TO KEEP STRAPHANGERS FROM CRAMMING INTO DOORWAYS THE RAILWAYS LASH THEM WITH A BIT OF SHAME WE PUT EXTRA WORKERS ON THE PLATFORMS AND MOSTLY THEY STAND THERE AND LOOK AT THE PASSENGERS SAYS MR YANAGAWA THAT USUALLY WORKS RIGOROUS MAYBE BUT THE COMMUTERS THRONGING THE PLATFORM AT OTEMACHI STATION ONE RECENT EVENING ARE EAGER ADHERENTS PEOPLE HEAR THE AUNCEMENTS AND THEY TRY TO GET IN THE TRAIN ON TIME SAYS TETSURO YAMANAKA A 28YEAROLD SALESMAN IF THEY DON'T MAKE IT YOU LOSE 10 SECONDS HERE 10 SECONDS THERE HE FROWNS SOON EVERY TRAIN ON THE LINE IS A MINUTE LATE JAPAN'S TIMELY TRAINS HAVE EARNED AN HONORED SPOT IN THE NATION'S CULTURE THERE IS A GENRE OF CRIME NOVELS FOR INSTANCE IN WHICH SLEUTHS PINPOINT THE MOVEMENTS OF VILLAINS ON THE ASSUMPTION THAT THE TRAINS RUN TO THE MINUTE PERHAPS THE MOST FAMOUS IS POINTS AND LINES A 1970 NOVEL BY SEICHO MATSUMOTO THE HERO IS INSPECTOR MIHARA A TIRELESS TOKYO POLICEMAN WHO SPENDS WEEKS PORING OVER TRAIN TIMETABLES HIS OBJECTIVE TO PROVE IT WAS POSSIBLE FOR BUSINESSMAN TATSUO YASUDA TO MAKE IT IN TIME TO A LONELY BEACH IN SOUTHERN JAPAN TO POISON A MAN WITH CYANIDE OR BROWSE THROUGH MOTORMAN BY TOMOMI FUJIWARA A PRIZEWINNING 1992 NOVEL ABOUT A PROMPT TOKYO SUBWAY DRIVER WHO HAS NIGHTMARES ABOUT BEING LATE HIS EYE ROLLED DOWN THE PLATFORM LIKE A PINGPONG BALL HE SCURRIED TO RETRIEVE IT BUT LOOKING AT HIS STOPWATCH HE NOTICED THAT JUST 30 SECONDS REMAINED UNTIL DEPARTURE SO HE RETURNED TO THE MOTORMAN'S COMPARTMENT AS HE WAS ABOUT TO LEAVE THE STATION THOUGH HE WONDERED ISN'T DRIVING ONEEYED A VIOLATION OF THE RULES IT IS IN ADDITION TO PASSING A VISION TEST TOKYO'S ASPIRING SUBWAY MOTORMEN MUST TAKE A CONCENTRATIONMEASUREMENT TEST THAT INVOLVES ADDING 34 COLUMNS OF NUMBERS 3910 SUMS IN ALL THEY ARE JUDGED NOT ON THEIR RAW SCORE BUT ON HOW CLOSELY THE PATTERN OF THEIR CORRECT RESPONSES CONFORMS TO THE NORMAL CURVE THAT IS BECAUSE A KEY TO KEEPING THE TRAINS ON TIME IS MAKING THEM RUN AT UNIFORM INTERVALS SAYS KINYA YAMADA A 50YEAROLD MANAGER FOR TOEI THE SMALLER OF THE CITY'S TWO SUBWAY COMPANIES SO WE LOOK FOR PEOPLE WHO WILL ALL DO THE SAME THING IN THE SAME WAY HE SAYS RECRUITS GO THROUGH A NINEMONTH TRAINING COURSE WHERE THEY STUDY RAILWAY HISTORY AND MEMORIZE A 200PAGE DRIVER'S MANUAL ON THE JOB DRIVERS ARE HELD TO A STRICT CODE OF BEHAVIOR BE POLITE DON'T READ WHILE ON DUTY AND ALWAYS WEAR YOUR WHITE GLOVES SUPERVISORS CARRY CHECKLISTS GRADING MOTORMEN ON SUCH ITEMS AS POSITION OF THE FEET HANDLE GRIPPING AND TIMELINESS MOTORMEN ARE A LITTLE LIKE ROBOTS LAUGHS MR YAMADA YOU MIGHT AS WELL EMPLOY MACHINES TOKYO'S SUBWAYS DO HAVE THEIR HEADACHES WALKMAN BATTERIES FOR INSTANCE SOME PASSENGERS DISCARD THEM ON THE SEATS AND THEY WIND UP ROLLING INTO THE DOORWAYS AND JAMMING THE DOORS WORSE STILL IS RAIN GEAR UMBRELLAS GET CAUGHT IN PEOPLE'S LEGS AND IN THE DOORS SLOWING DOWN THE PASSENGERS DURING THE WINTER RIDERS' OVERCOATS EAT UP SPACE SO FEWER PEOPLE CAN SQUEEZE ABOARD OR BE PUSHED ABOARD BY PLATFORM ATTENDANTS THEN THERE ARE THE SUICIDES IN 1992 1032 JAPANESE KILLED THEMSELVES BY LYING DOWN OR LEAPING IN FRONT OF TRAINS THE DELAY ISN'T SO LONG IF THE JUMPER SURVIVES SAYS TOEI'S MR YAMADA MATTEROFFACTLY BECAUSE STATION ATTENDANTS WHISK THE INJURED TO THE HOSPITAL BUT IF THE PERSON DIES THE CREW HAS TO WAIT FOR THE POLICE TO ARRIVE AND WITNESSES TO BE IDENTIFIED THEN YOU'RE TALKING 40 50 MINUTES HE SAYS THE TRAIN COMPANIES ARE SO FRUSTRATED BY THIS INTRUSION INTO THEIR SCHEDULING THAT THEY SOMETIMES FINE THE FAMILIES OF JUMPERS AND EVEN BASE THE PENALTY ON HOW MANY PASSENGERS ARE DELAYED THE PRESS WATCHDOG OF THE PUBLIC INTEREST DOES ITS BIT FOR TIMELINESS BY REMINDING READERS WHAT A NUISANCE A JUMPER CAN BE TEACHER COMMITS SUICIDE ON MITA LINE READS A HEADLINE IN YOMIURI SHIMBUN 30000 ARE DELAYED DURING RUSH HOUR YUKIO HARADA A FORMER MOTORMAN HIT A JUMPER IN 1978 THE VICTIM A MAN IN HIS FORTIES WAS KILLED THE TRAIN WAS HELD UP FOR A HALF HOUR AND THE 52YEAROLD MR HARADA NOW A SUPERVISOR FOR TOEI WAS GIVEN THREE DAYS OFF TO SETTLE HIS NERVES HE WAS PRETTY SHAKEN UP THAT FIRST NIGHT HE RECALLS CALMLY BUT THE NEXT DAY THINGS WERE BACK TO NORMAL RAILWAYS SAY THERE ISN'T MUCH THEY CAN DO TO PREVENT SUICIDES IN THE YEAR THROUGH MARCH 1992 THE TOEI SUBWAY WHICH HAD SIX BODY INCIDENTS ASSESSED PENALTIES OF AS MUCH AS 250000 YEN 2250 NOT THAT IT IS MUCH OF A DETERRENT MOST JAPANESE DON'T KNOW THE FINES EXIST MOST FAMILIES REFUSE TO PAY STILL WITH A FEW EXCEPTIONS PROMPTNESS PREVAILS ON A RECENT TUESDAY EIDAN SAYS JUST 13 OF ITS 4500 TRAIN RUNS FELL BEHIND BY FIVE MINUTES EXCLUDING SUICIDES THE EIDAN AND TOEI SYSTEMS BOAST THAT THEY HAVE NEVER HAD A PASSENGER DIE IN AN ACCIDENT IN CASE YOU'RE WONDERING INSPECTOR MIHARA'S HUNCH WAS RIGHT THE TIRELESS TIMETABLE READING GUMSHOE ESTABLISHED THAT THE BUSINESSMAN WAS INDEED AT THE LONELY BEACH AND DID ADMINISTER THE POISON BUT THE TRAIN SCHEDULES SHOWED AN EVEN MORE STARTLING TRUTH THE KILLER GOT THERE BY AIRPLANE 9305260005 930526 DEFICIT REDUCTION MADE EASY BY ROBERT J BARRO THE ADMINISTRATION CLAIMS TO BE EAGER TO REDUCE THE BUDGET DEFICIT BUT APPARENTLY CANNOT FIND MUCH EXPENDITURE THAT CAN POSSIBLY BE CUT HENCE THE FOCUS ON RAISING TAXES AND THE FREQUENT QUERY TO ADVOCATES OF LOWER SPENDING WHERE WOULD YOU CUT THIS QUESTION IS APPARENTLY INTENDED TO BE A MAJOR CHALLENGE BUT DOES THE ADMINISTRATION SERIOUSLY BELIEVE THAT A BUDGET OF 15 TRILLION DOES NOT CONTAIN MANY DOLLARS OF SPENDING THAT COULD BE USEFULLY ELIMINATED CONSIDER AS AN ILLUSTRATION THE NEARBY LIST OF PROPOSED REDUCTIONS BASED ON NUMBERS FOR OUTLAYS IN FISCAL 1993 THIS PROPOSAL LEAVES UNTOUCHED SUCH MAJOR AREAS AS DEFENSE INTEREST PAYMENTS SOCIAL SECURITY MEDICARE AND MEDICAID VETERANS' BENEFITS AND DEPOSIT INSURANCE ALTHOUGH THE PARTICULARS CAN BE DEBATED AND THE LIST CAN BE EXPANDED THE BASIC POINT IS THAT IT IS FEASIBLE TO CUT MORE THAN 150 BILLION IN ANNUAL SPENDING FROM AREAS OUTSIDE OF DEFENSE SOCIAL SECURITY AND HEALTH THIS DOWNSIZING OF GOVERNMENT IS DESIRABLE WHETHER OR NOT WE HAVE A BUDGET DEFICIT BUT THESE CUTS WOULD IN FACT ACHIEVE A DRAMATIC DECREASE IN THE DEFICIT WITHOUT ADDITIONAL TAXES SOME FURTHER SAVINGS WOULD ALSO RESULT BECAUSE WITH MUCH OF THEIR MISSIONS REMOVED THE DEPARTMENTS OF AGRICULTURE HOUSING AND ENERGY COULD BE ELIMINATED AS SEPARATE ADMINISTRATIVE ENTITIES I DO NOT PROPOSE FURTHER CUTS IN DEFENSE SPENDING 291 BILLION IN 1993 WITH PROJECTED DECLINES IN NOMINAL SPENDING THROUGH 1997 BECAUSE THE WORLD DOES NOT CURRENTLY LOOK SAFE ENOUGH FOR SUCH REDUCTIONS TO BE PRUDENT ANYWAY THE ONLY TIME THAT I EVER GOT THE BETTER OF MILTON FRIEDMAN WAS WHEN HE DEMANDED THAT I NAME AN AREA OF FEDERAL SPENDING IN WHICH I THOUGHT PEOPLE WERE GETTING THEIR MONEY'S WORTH AND I ANSWERED NATIONAL DEFENSE TO WHICH MILTON RESPONDED I MEANT AN AREA OF NONDEFENSE FEDERAL SPENDING ON THE OTHER HAND IF WE END UP USING OUR MILITARY CAPABILITY MAINLY TO ASSIST THE UNITED NATIONS IN HUMANITARIAN EFFORTS LIKE SOMALIA AND BOSNIA THEN SMALLER OUTLAYS FOR DEFENSE MAY BE ADVISABLE I DO NOT ADVOCATE REDUCTIONS IN INTEREST PAYMENTS BECAUSE THE MAIN SUGGESTION THAT HAS BEEN MADE IN THIS AREA SHIFTS BETWEEN LONGTERM AND SHORTTERM DEBT ARE UNLIKELY TO ACHIEVE LONGRUN SAVINGS FORTUNATELY NO ONE HAS YET PROPOSED THAT THE US GOVERNMENT FOLLOW THE THIRD WORLD ROUTE OF DEFAULTING ON PART OF ITS DEBT THE GOVERNMENT'S MEDICAL OUTLAYS WHICH INCLUDE 133 BILLION FOR MEDICARE AND 81 BILLION FOR MEDICAID IN 1993 ARE ENORMOUS AND OUGHT TO BE SCALED BACK INSTEAD WE ARE HEARING AN ARRAY OF PROPOSALS FOR NEW WELFARE PROGRAMS TO BENEFIT THE MEDICALLY NEEDY WHO ARE NEITHER OLD NOR POOR BUT THE MEDICAL AREA IS A COMPLEX SUBJECT THAT IS WORTH A SEPARATE DISCUSSION I DO SLEEP BETTER WITH THE KNOWLEDGE THAT THIS IMPORTANT FIELD IS IN THE HANDS OF THE HILLARYMAGAZINER 500 A GROUP THAT APPARENTLY WANTS TO SOCIALIZE EVERYTHING IN SIGHT FINALLY I SHOULD COMMENT ON THE RETIREMENT PROGRAM UNDER SOCIAL SECURITY 270 BILLION FOR OLD AGE AND SURVIVORS IN 1993 ALTHOUGH THIS ITEM HAS BEEN SACRED IT IS ACTUALLY ONE OF THE MOST BIZARRE PROGRAMS IN THE ENTIRE BUDGET BASICALLY THE GOVERNMENT DISTORTS THE ECONOMY BY LEVYING ABOUT 300 BILLION IN PAYROLL TAXES IN ORDER TO TAKE MONEY FROM CHILDREN AND GIVE IT TO THEIR PARENTS THEN THE GOVERNMENT PROMISES THE CHILDREN THAT THEY WILL BE ABLE TO TAX THEIR KIDS LATER TO GET PART OF THEIR MONEY BACK THE INITIAL INTENT OF THE SOCIAL SECURITY PROGRAM WAS TO ENSURE THAT WORKERS AND THEIR SPOUSES WOULD HAVE A MINIMUM OF INCOME WHEN THEY WERE OLD IN PARTICULAR TO MAKE CERTAIN THAT INDIGENT ELDERLY WOULD NOT END UP ON THE PUBLIC DOLE THE EFFICIENT WAY TO ACCOMPLISH THIS GOAL IS TO MANDATE A MINIMUM LEVEL OF CONTRIBUTIONS BY WORKERS INTO PENSION FUNDS WHICH COULD BE ADMINISTERED PRIVATELY AND HELD IN A VARIETY OF DESIRED FORMS THE LEVEL OF RETIREMENT BENEFITS WOULD DEPEND ON THE MARKET VALUE OF THE PENSION FUNDS IN PARTICULAR THESE BENEFITS WOULD NOT BE DETERMINED BY A POLITICAL DEBATE BETWEEN THE YOUNG AND THE OLD AND COULD NOT RISE DRAMATICALLY JUST BECAUSE SOMEONE LIKE RICHARD NIXON THOUGHT IT WAS A GOOD IDEA THIS KIND OF PRIVATIZED SOCIAL SECURITY SCHEME HAS BEEN SUCCESSFULLY IMPLEMENTED IN CHILE ALONG WITH A CAREFUL TRANSITIONAL PLAN THAT GRANDFATHERED THE OLDER PEOPLE WHO WERE PART OF THE GOVERNMENT PROGRAM SEE THE MAY 21 ARTICLE BY ROBERT GENETSKI ON THIS PAGE A SIMILAR SYSTEM IS CURRENTLY PLANNED FOR ARGENTINA THE NEXT TIME WE HAVE A COMMISSION ON SOCIAL SECURITY IT SHOULD FORMULATE THIS TYPE OF PLAN INSTEAD OF FOCUSING ON INCREASES IN PAYROLL TAXES NO DOUBT SOMEONE IN THE ADMINISTRATION WILL SOON SAY AGAIN THAT MORE TAXES ARE NEEDED TO REDUCE THE BUDGET DEFICIT BECAUSE AFTER ALL WHERE WOULD YOU CUT WE ALL KNOW HOWEVER THAT WHAT THE ADMINISTRATION MEANS IS WE DON'T REALLY WANT TO CUTSHIRT MR BARRO A WALL STREET JOURNAL CONTRIBUTING EDITOR IS AN ECONOMICS PROFESSOR AT HARVARD 9305260004 930526 ECONOMY SALES OF USBUILT CARS TRUCKS ROSE IN MIDMAY TO HIGHEST RATE THIS YEAR BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE SELLING PACE OF DOMESTICALLY BUILT VEHICLES SURGED IN MIDMAY TO ITS HIGHEST LEVEL THIS YEAR AS VIRTUALLY EVERY AUTO MAKER REPORTED BIG INCREASES FROM LACKLUSTER YEAREARLIER LEVELS USBUILT CARS AND LIGHT TRUCKS SOLD AT A SEASONALLY ADJUSTED ANNUALIZED RATE OF 125 MILLION VEHICLES UP FROM AN 117 MILLION PACE IN THE PREVIOUS 30DAY PERIOD AND AN 111 MILLION RATE IN THE WEAK YEARAGO PERIOD THE HUGE JUMP IN VEHICLE SALES CAME DESPITE A SHARP DROP IN CONSUMER CONFIDENCE AFTER RISING IN APRIL THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX FELL TO ITS LOWEST LEVEL THIS YEAR IN MAY SEVERAL DEALERS REPORTED A PICKUP IN VEHICLE SALES IN THE MAY 1120 PERIOD BUSINESS HAS BEEN VERY VERY GOOD SAID RUSS DARROW WHO OWNS FIVE CHRYSLER DEALERSHIPS IN WISCONSIN CHRYSLER IS JUST ON FIRE OVERALL THE INDUSTRY SOLD 395258 DOMESTICALLY BUILT CARS AND LIGHT TRUCKS IN MIDMAY UP 183 FROM A YEAR AGO DOMESTIC CAR SALES CLIMBED 148 WHILE SALES OF USBUILT TRUCKS JUMPED 233 THIS SHOULD PUT TO REST FEARS OF ANOTHER SLOWDOWN IN THE ECONOMY SAID ANALYST RONALD GLANTZ OF DEAN WITTER REYNOLDS INC MR GLANTZ RECENTLY RAISED HIS FORECAST FOR 1993 VEHICLES SALES INCLUDING IMPORTS AND HEAVY TRUCKS TO 141 MILLION VEHICLES FROM 139 MILLION VEHICLES CAR DEALER MARTIN J MCINERNEY WHO OWNS SEVERAL DEALERSHIPS SELLING A VARIETY OF MAKES IN MICHIGAN AND FLORIDA SAID THAT MOUNTING OPPOSITION IN WASHINGTON TO PRESIDENT CLINTON'S ECONOMIC PLAN IS HELPING CAR SALES AS IT NOW APPEARS THAT SOME OF THE PRESIDENT'S PROPOSED TAX INCREASES MAY NOT PASS ALL THOSE HAND GRENADES IN WASHINGTON THEY WERE GOING TO LOB AT US NONE OF THEM HAVE GONE OFF YET SAID MR MCINERNEY GENERAL MOTORS CORP REPORTED A 93 JUMP IN MIDMAY IN TOTAL VEHICLE SALES FROM THE YEARAGO PERIOD TOTAL CAR SALES CLIMBED 67 WHILE TRUCK SALES GAINED 141 OVER THE YEAREARLIER PERIOD FORD MOTOR CO'S SALES ROSE 163 FROM A YEAR AGO ITS CAR SALES ROSE 66 AND ITS TRUCK SALES SHOT UP 281 CHRYSLER CORP SAW ITS VEHICLE SALES SURGE 316 IN THE MAY 1120 PERIOD ACCORDING TO AN ESTIMATE FROM WARD'S AUTOMOTIVE REPORTS CHRYSLER RELEASES ITS SALES ON A MONTHLY BASIS ONLY HONDA MOTOR CO'S OVERALL VEHICLE SALES ROSE 62 BUT ITS SALES OF DOMESTICALLY BUILT CARS DROPPED 14 PULLED DOWN BY CONTINUED SLUGGISH SALES OF ITS HONDA ACCORD MAZDA MOTOR CORP AND MITSUBISHI MOTOR CORP REPORTED THAT SALES OF THEIR DOMESTICALLY BUILT VEHICLES ROSE 984 AND 525 RESPECTIVELY SEPARATELY MITSUBISHI FOLLOWING OTHER JAPANESE AUTO MAKERS SAID IT RAISED BASE PRICES FOR ITS VEHICLES BETWEEN 12 AND 25 9305260003 930526 TECHNOLOGY SONY DENIES KODAK'S CHARGES PARK RIDGE NJ SONY CORP SAID IT FORMALLY DENIED EASTMAN KODAK CO'S ALLEGATIONS IN A PATENTINFRINGEMENT LAWSUIT FILED AGAINST SONY IN FEBRUARY OVER A MAGNETIC RECORDING SYSTEM IN FEDERAL COURT IN MARSHALL TEXAS SONY CONTENDED THAT THE KODAK PATENT ISN'T INFRINGED BY SONY AND IN FACT IS INVALID BASED ON PRIOR TECHNOLOGY OF OTHERS KODAK SEEKS UNSPECIFIED DAMAGES AND AN INJUNCTION AGAINST INFRINGEMENT THE MAGNETIC SYSTEM INVOLVED IS COMMONLY USED IN VIDEORECORDING EQUIPMENT 9305260002 930526 INSTORE ADVERTISING IS DELISTED GREENWICH CONN INSTORE ADVERTISING INC SAID ITS COMMON STOCK WAS DELISTED FROM THE NASDAQ NATIONAL MARKET SYSTEM EFFECTIVE YESTERDAY FOR FAILURE TO FILE ITS ANNUAL REPORT WITH REGULATORS ON TIME LAST MONTH INSTORE ADVERTISING SAID ISSUANCE OF THE 1992 ANNUAL REPORT HAD BEEN DELAYED WHILE THE COMPANY RESOLVED QUESTIONS RELATED PRIMARILY TO ITS 1990 FINANCIAL STATEMENTS INSTORE ADVERTISING DELIVERS ADVERTISING AND PROMOTIONAL MESSAGES FROM CONSUMER PRODUCT COMPANIES THROUGH INSTORE ELECTRONIC SIGNS LOCATED IN SUPERMARKETS 9305260001 930526 ONBANCORP ACQUISITION CLEARED SYRACUSE NY ONBANCORP INC'S PROPOSED ACQUISITION OF FRANKLIN FIRST FINANCIAL CORP HAS BEEN CLEARED BY SHAREHOLDERS OF EACH THE COMPANIES SAID ONBANCORP A BANK HOLDING COMPANY HAS AGREED TO PAY 1386 MILLION IN STOCK FOR THE WILKESBARRE PA THRIFT REGULATORY CLEARANCE IS STILL REQUIRED 9305260177 930416 LEISURE & ARTS BOOKSHELF FAITH AND THE FUTURE OF CAPITALISM BY LEWIS E LEHRMAN THE CONVENTIONAL WISDOM OF OUR AGE DECREES ECONOMICS AND RELIGION MUTUALLY EXCLUSIVE COMMERCE AND FAITH THE WORKS OF SEPARATE AND SOMETIMES HOSTILE AUTHORS THOSE ENEMIES OF DEMOCRATIC CAPITALISM MOSTLY SOCIALIST ACADEMICS LIKE TO PAINT RELIGION AS THE OPIATE OF THE MASSES AND A TOOL OF OPPRESSION EVEN SOME CAPITALISTS LEAN TO REDUCTIVISM SEEING ECONOMICS AS ONLY DEALING WITH THE BOTTOM LINE OR OTHER INHUMAN CALCULUSES BOTH GROUPS HAVE TRIED TO UNDERMINE THOUGH LUCKILY WITHOUT MUCH SUCCESS THE SPIRITUAL BASIS OF CAPITALISM THE COLLUSION OF MARXISTS AND ECONOMIC REDUCTIONISTS IN UNDERMINING THE MORAL FOUNDATION OF OUR ECONOMIC ORDER CAN BE BETTER UNDERSTOOD THROUGH MICHAEL NOVAK'S THE CATHOLIC ETHIC AND THE SPIRIT OF CAPITALISM FREE PRESS 334 PAGES 2495 MR NOVAK A FELLOW AT THE AMERICAN ENTERPRISE INSTITUTE SHOWS THAT THE TRUE BASES OF CAPITALISM MORALITY AND THE WORTH OF THE HUMAN PERSON MUST BE RESTORED MR NOVAK SEES IN ROMAN CATHOLIC SOCIAL TEACHINGS THE NECESSARY FOUNDATION OF OUR MODERN ECONOMIC ORDER WHAT DOES MR NOVAK PRESUME ABOUT CAPITALISM THAT LEADS HIM TO ASSOCIATE THE FUTURE SUCCESS OF THE MARKET ECONOMY WITH THE ANCIENT FAITH OF WESTERN CIVILIZATION ROMAN CATHOLICISM ARE NOT THE JAPANESE THEMSELVES BUDDHISTS SHINTOISTS AND ATHEISTS THE PEERLESS CAPITALISTS OF THE PAST GENERATION WERE NOT THE PROTESTANTS OF 17TH AND 18THCENTURY NORTHERN EUROPE THE AUTHORS OF THE EARLIEST INDUSTRIAL REVOLUTIONS IN HOLLAND ENGLAND SCANDINAVIA NORTHERN GERMANY AND NORTH AMERICA MR NOVAK TRIES TO DISARM US BY DISAVOWING ANY SECTARIAN PURPOSE INSISTING THAT CATHOLIC SHOULD BE UNDERSTOOD IN THE SMALL C' SENSE OF THE WORD AS WELL AS IN THE LARGE THUS HIS CATHOLIC ETHIC ENCOMPASSES MOSAIC TEACHINGS AND PROTESTANT INSPIRATIONS AND THEREBY ALSO IMPLICITLY INCLUDES THE NONCHRISTIAN ETHOS OF THE CONTEMPORARY CAPITALIST NATIONS OF ASIA BUT CATHOLIC AS MR NOVAK MAY ARGUE CATHOLIC HE STILL REMAINS FOR HIS DEDICATION READS IN HOMAGE TO POPE JOHN PAUL II A LITTLE LATER HE CONFIRMS THAT THE THESIS OF HIS BOOK MAY BE STATED IN A SINGLE SENTENCE OUT OF THE CRUCIBLE OF A HUNDREDYEAR DEBATE WITHIN THE ROMAN CATHOLIC CHURCH CAME A FULLER AND MORE SATISFYING VISION OF THE CAPITALIST ETHIC THAN MAX WEBER'S THE PROTESTANT ETHIC AND THE SPIRIT OF CAPITALISM' WEBER DESCRIBED THE PHILOSOPHY OF AVARICE AS AN ESSENTIAL ASPECT OF THE PROTESTANT ETHIC TO MR NOVAK THAT IS TOO NARROW A GROUND UPON WHICH TO ESTABLISH THE FOUNDATION OF THE MODERN MARKET ECONOMY TOO MELANCHOLY AND SECTARIAN AN ETHOS TO SUSTAIN A NEW BIRTH OF CAPITALISM WHAT MR NOVAK DOES NOT DENY INDEED HE EMBRACES IT IS WEBER'S THESIS THAT THE UNPARALLELED FECUNDITY OF CAPITALISM ORIGINATES IN THE RELIGIOUS AND MORAL TRADITION OF WESTERN MAN THE ESSENCE OF THE PRODUCTIVITY OF CAPITALISM THE SECRET OF ITS PLENITUDE MR NOVAK AGREES IS THE CREATIVITY OF THE HUMAN SPIRIT THIS MORAL AND RELIGIOUS ETHOS IS BEST CAPTURED AS WEBER HIMSELF BELIEVED IN THE MEANING OF THE WORD CALLING MEN AND WOMEN DO NOT HAVE OCCUPATIONS THEY HAVE CALLINGS THEY ARE CALLED BY GOD TO THEIR WORK THUS DOES THE WORK OF HUMAN HANDS ITSELF A GREAT SACRIFICE OF PLEASURE AND CONVENIENCE ACQUIRE A SACRED DIGNITY BUT MR NOVAK IS LESS CONCERNED WITH THE THEORY AND ORIGINS OF CAPITALISM THAN HE IS WITH THE MORAL ORDER THE NEW CATHOLIC ETHIC WITHOUT WHICH CAPITALISM SHALL NOT SURVIVE AND THIS IS NO EASY BURDEN FOR THE VERY ETHOS THAT CREATED AND SUSTAINED CAPITALISM THE JUDEOCHRISTIAN WORLD VIEW IS NOW UNDER ASSAULT BY INTELLECTUAL ELITES THE WORLD OVER THE HARDEST PART OF THE MORAL TASK WE FACE MR NOVAK ARGUES IS THE IMMENSE POWER OF THE ADVERSARY CULTURE TO OPPOSE THAT POWER IS TO RISK EXCOMMUNICATION FROM THE MAINSTREAM AS LIONEL TRILLING WAS COMPELLED TO STATE THE INTENTION OF THE MODERNIST PROJECT IS TO SUBVERT THE CLASSIC JEWISH CHRISTIAN AND NATURAL VIRTUES TO TURN THE WORLD UPSIDE DOWN TO INSINUATE THAT WHAT JEWS AND CHRISTIANS HAVE FOR CENTURIES CALLED SIN IS ACTUALLY A HIGH FORM OF LIBERATION THE SPIRITUAL ANARCHY OF THE ACADEMY MIRED IN ITS SLOTH OF MORAL RELATIVISM STRIKES AT SWORD'S POINT MR NOVAK'S CATHOLIC ETHIC AND AS MR NOVAK RIGHTLY OBSERVES THE SPIRITUAL CAPITAL OF THE MARKET ECONOMY IS RUNNING DOWN AT THE VERY MOMENT OF ITS POLITICAL VICTORY WHILE THE FORMS OF ITS INSTITUTIONS BY VIRTUE OF INERTIA MERELY DECEIVE US TO BELIEVE IN THEIR PERMANENCE BUT WHAT ARE A FEW CONCRETE EXAMPLES OF HOW THE NEW CATHOLIC ETHIC WOULD EFFECT THE MARKET ECONOMY OF TODAY ACCORDING TO MR NOVAK THE NEW CATHOLIC ETHIC WOULD CONSTRAIN THE WRIT OF THE FREE MARKET SETTING AT LEAST THREE CLEAR MORAL LIMITS FIRST MANY HUMAN NEEDS ARE NOT MET BY THE MARKET BUT LIE BEYOND IT THUS THE STATE MUST SUPPORT AND ENCOURAGE RELIGION AND OTHER MEDIATING INSTITUTIONS THAT BUILD CHARACTER AND CITIZENSHIP SECOND SOME GOODS IN JOHN PAUL'S WORDS CANNOT AND MUST NOT BE BOUGHT AND SOLD THUS HUMAN FLESH CANNOT BE TRADED FOR MONEY PROSTITUTION PORNOGRAPHY SLAVERY AND ABORTION MUST BE RULED OUT OF A JUST MARKET ECONOMY THIRD WHOLE GROUPS OF PEOPLE ARE WITHOUT THE RESOURCES TO ENTER THE MARKET AND NEED NONMARKET ASSISTANCE THUS THE DISABLED THE ILLITERATE THE HELPLESS MUST BE RESCUED BY AN ETHIC OF SOCIAL JUSTICE BASED ON A SOCIAL SAFETY NET WROUGHT BY THE COOPERATION OF FREE PERSONS IN CIVIL ASSOCIATIONS NOT EXCLUDING THE STATE PERHAPS THE PUREST FORMULATION OF THIS NEW CATHOLIC ETHIC MAY BE FOUND IN THE WORDS OF MONSIGNOR JOSE MARIA ESCRIVA DE BALAGUER ONE OF THE MOST DISTINGUISHED 20THCENTURY SCHOLARS PASTORS AND DISCIPLES OF THE CATHOLIC SOCIAL PHILOSOPHY OF LEO XIII AND JOHN PAUL II AS WE READ IN THE BOOK OF GENESIS GOD CREATED MEN TO WORK ANY HONEST AND WORTHWHILE WORK CAN BE CONVERTED INTO A DIVINE OCCUPATION IN GOD'S SERVICE THERE ARE NO SECONDCLASS JOBS ALL OF THEM ARE IMPORTANT MR LEHRMAN IS CHAIRMAN OF LEHRMAN BELL MUELLER CANNON INC A FINANCIAL FORECASTING FIRM SEE RELATED LETTERS LETTERS TO THE EDITOR CAPITALISM ISN'T MORAL BUT IT IS REASONABLE WSJ MAY 26 1993 9304160102 YY93 MM05 9305260174 930409 MARKETING & MEDIA ADVERTISING MARKETERS MISS VAST OPPORTUNITY BY ALIENATING BLACK CONSUMERS BY LAURA BIRD REVLON TRIED TO STRIKE A FOND NOTE OF NOSTALGIA TWO YEARS AGO WHEN IT CREATED A PERFUME COMMERCIAL USING FOOTAGE OF NAT KING COLE CROONING UNFORGETTABLE TODAY HERE IS WHAT PLENTY OF PEOPLE REMEMBER ABOUT THE CAMPAIGN THE REVLON COMMERCIAL USED A BELOVED BLACK ARTIST IN PRAISE OF A PARADE OF UNFORGETTABLE WOMEN ALL OF WHOM WERE WHITE WHEN REVLON LATER TRIED TO REMEDY THE GAFFE BY HASTILY TACKING ON A SHOT OF THE BLACK MODEL BEVERLY JOHNSON TO THE END OF THE SPOT THE EFFORT STRUCK SOME AS CLUMSY IT WAS LIKE A THUMBTACK IN A PIECE OF FABRIC SAYS BETHANN HARDISON WHO IS AFRICANAMERICAN AND IS THE PRESIDENT OF BETHANN MANAGEMENT A NEW YORK MODELING AGENCY IT JUST SHOWED YOU WHERE THE TEAR WAS REVLON DIDN'T RETURN PHONE CALLS SEEKING COMMENT MADISON AVENUE HAS BEEN SLOW AND AWKWARD IN ITS EFFORTS TO EMBRACE BLACK CONSUMERS ETHNICMARKETING EXECUTIVES SAY OVER THE PAST DECADE ADVERTISERS HAVE CAUGHT ON TO THE NEED FOR SPECIAL HISPANIC MARKETING GIVEN THE OBVIOUS COMMUNICATION GAP PRESENTED BY THE SPANISH LANGUAGE BUT THEY HAVE A LONG WAY TO GO IN REACHING AFRICANAMERICANS EFFECTIVELY ALMOST 60 OF THE NATION'S 31 MILLION BLACK CONSUMERS FEEL THAT MOST COMMERCIALS AND PRINT ADS ARE DESIGNED ONLY FOR WHITE PEOPLE ACCORDING TO A NEW EXTENSIVE SURVEY THE STUDY BY YANKELOVICH PARTNERS INC AND THE BLACKORIENTED AD AGENCY BURRELL COMMUNICATIONS GROUP OFFERS A PARADOX AFRICANAMERICANS HAVE MORE MONEY TO SPEND ARE FAR MORE AVID SHOPPERS AND ARE FAR LESS BRANDLOYAL AND MORE RECEPTIVE TO ADVERTISING THAN MOST MARKETERS REALIZE YET ADVERTISERS ARE MISSING OUT ON THIS EAGER AUDIENCE CONFUSED ABOUT WHO THEIR BLACK CUSTOMERS ARE AND HOW TO PORTRAY THEM IN ADS THE RESULT IS LOST OPPORTUNITY THAT MAY COST THEM UNTOLD MILLIONS IN SALES AND NEW CUSTOMERS INEVITABLE DEMOGRAPHIC CHANGES MEAN THAT ADVERTISERS' MARGIN FOR ERROR IS GROWING SMALLER ALL THE TIME MARKET SEGMENT RESEARCH A MIAMI FIRM THAT SURVEYS ETHNIC MARKETS SAYS THE NONWHITE SEGMENT OF THE US POPULATION IS PROJECTED TO GROW TO MORE THAN 35 IN THE NEXT THREE DECADES FROM 24 CURRENTLY WHEN IT DOES CULTURAL DIVERSITY WON'T BE A BUZZWORD IT WILL BE A MARKETING IMPERATIVE WHEN 35 TO 40 OF CONSUMERS ARE ETHNIC SAYS CHUCK MORRISON FORMER COKE ETHNICMARKETING EXECUTIVE WHO NOW RUNS HIS OWN CONSULTING FIRM IN ATLANTA COMPANIES HAD BETTER UNDERSTAND THOSE SEGMENTS HOW A MARKETER PORTRAYS MINORITIES IN ITS ADVERTISING IS OFTEN THE TIEBREAKER FOR AFRICANAMERICAN CONSUMERS WHO GENERALLY PAY MORE ATTENTION TO ADVERTISING THAN WHITE PEOPLE HE SAYS ADDING THEY ARE PARTICULARLY MORE INTERESTED IN ADVERTISING WHEN IT PORTRAYS THEM BUT TOO MANY COMPANIES ARE ATTEMPTING TO ADDRESS THE ISSUE JUST BY PUTTING A BLACK FACE IN AN OTHERWISE WHITE COMMERCIAL SAYS CHARLES H CURRY PRESIDENT OF THE BURRELL AGENCY IN CHICAGO THE EFFECT ON THE BLACK CONSUMERS THOSE ADS TRY TO REACH THEY ARE LAUGHED AT AS BEING TOTALLY UNREALISTIC MR CURRY SAYS SOME MARKETERS LAMENT COMMERCIAL DEPICTIONS THAT SOMEHOW DON'T RING TRUE A SPOT FOR WESTERN UNION MONEY TRANSFERS PRESENTS PEOPLE IN A PICKLE MOST ARE WHITE EXCEPT FOR THREE BLACK ENTERTAINERS IN SHINY TUXEDOS WHO SEEM TO HAVE BEEN ARRESTED BY A STERN STATE PATROLMAN ON THEIR WAY TO A GIG WHY ARE THE ONLY AFRICANAMERICANS IN THIS SPOT DEPICTED AS IF THEY WALKED RIGHT OUT OF THE 1970S A LA THE PIPS OF GLADYS KNIGHT FAME THERE IS NO FACT TO THAT VIEW COUNTERS EDWARD F UHRMAN PRESIDENT OF WESTERN UNION FINANCIAL SERVICES HE SAYS THE CAMPAIGN HAS BEEN SUCCESSFUL THAT PARTICULAR AD DIDN'T GENERATE COMPLAINTS AND IT HASN'T RUN IN QUITE A WHILE MARKETERS CAN STAND OUT FOR ADS THAT PORTRAY AFRICANAMERICAN CULTURE REALISTICALLY EXECUTIVES SAY NIKE'S FUNNY SPOT SHOWING INNERCITY KIDS PLAYING A ROUGH GAME OF HOOPS WHILE A HIGH SCHOOL COACH NARRATES BY EXTOLLING THE VIRTUES OF PASSING AND FORM MCDONALD'S SPOTS IN HONOR OF MARTIN LUTHER KING JR A CAMPAIGN FOR AMERICAN EXPRESS MONEYGRAM WESTERN UNION'S RIVAL THAT SHOWS HOW A WOMAN WIRES MONEY TO HER UNCLE AFTER A FLOOD DESTROYED HIS HOME THE LACK OF INFORMATION ABOUT BLACK CONSUMER PSYCHOGRAPHICS PROMPTS THE LOS ANGELES OFFICE OF D'ARCY MASIUS BENTON & BOWLES WHICH CREATES THE MONEYGRAM ADS TO TEST THE CULTURAL AUTHENTICITY OF EACH AD WITH THE CAMPAIGN'S TARGET CONSUMERS MANY OF WHOM ARE URBAN BLACK MEN YANKELOVICH WHICH CONDUCTED MORE THAN 1000 FACETOFACE INTERVIEWS LAST FALL IN THE HOMES OF SUBJECTS AGED 14 AND OLDER SAYS MARKETERS HAVE OVERLOOKED SOME CONSUMER ATTITUDES THAT APPEAR TO BE UNIQUELY AFRICANAMERICAN REGARDLESS OF INCOME EDUCATION AND GEOGRAPHY FOR EXAMPLE BLACK HOUSEHOLDS HAVE DISPROPORTIONATELY HIGHER DISPOSABLE INCOME THAN IS GENERALLY ASSUMED AND MORE WILLINGNESS TO SPEND IT THAT IS PARTLY BECAUSE MANY BLACKS AREN'T AS BURDENED BY LONGTERM DEBT INCLUDING MORTGAGES BUT IT ALSO STEMS FROM A GREATER INCLINATION TO SPEND IN LEAN TIMES AND AN ENTHUSIASM FOR SHOPPING AS ENTERTAINMENT THE STUDY FOUND BLACKS AS A GROUP ARE POORER THAN WHITES AMONG AFRICANAMERICANS THE MEDIAN HOUSEHOLD INCOME IS 19500 30 LOWER THAN THE 27800 MEDIAN IN THE GENERAL MARKET OVER ALL BUT THE GAP IN TERMS OF DISPOSABLE INCOME AS A PERCENTAGE OF HOUSEHOLD INCOME IS ALMOST NONEXISTENT THE RESEARCHERS FIGURE BLACKS' EXPENDITURES AMOUNTED TO 78 OF THEIR TOTAL HOUSEHOLD INCOME IN 1991 ACCORDING TO US CENSUS AND BUREAU OF LABOR STATISTICS DATA THE GENERAL MARKET'S EXPENDITURES WERE 80 OF TOTAL HOUSEHOLD INCOME LOWER LONGTERM DEBT IS JUST ONE REASON WHY IN THE SURVEY BLACKS EXPRESSED ATTITUDES TOWARD SHOPPING AND SPENDING THAT MAKE FOR A LUCRATIVE MARKET CONSUMERS OF ALL STRIPES GENERALLY DISPLAY A CONSTANT THREAD OF ALIENATION STRESS AND WORRY ABOUT FINANCES BUT AMONG BLACKS THE RESEARCHERS FOUND THAT ISN'T THE CASE AFRICANAMERICANS ARE USED TO ECONOMIC UNCERTAINTY AND AREN'T AFFECTED BY IT TO THE SAME DEGREE AS WHITES SAYS JAMES A TAYLOR MANAGING PARTNER AND CHIEF EXECUTIVE AT YANKELOVICH THEY SIMPLY DON'T HAVE THE SAME FEAR OF SPENDING THAT MAKES BLACK CONSUMERS ACTIVE SHOPPERS THE STUDY SHOWS FIFTYSIX PERCENT SAY THEY ENJOY CLOTHES SHOPPING COMPARED WITH 29 OF NONBLACKS 55 ARE AVID BARGAIN HUNTERS COMPARED WITH 35 OF NONBLACKS BLACK CONSUMERS ALSO ARE MORE LIKELY THAN THE REST OF THE POPULATION TO GATHER INFORMATION ABOUT PURCHASES BY TALKING TO SALESPEOPLE CALLING MANUFACTURERS' TOLLFREE LINES AND PAYING ATTENTION TO ADVERTISING THOSE CONCLUSIONS MIGHT BE SOMEWHAT PREDICTABLE GIVEN THAT YANKELOVICH WANTS TO SELL THE RESEARCH TO ADVERTISERS AND BURRELL WANTS THEM TO CREATE MORE BLACKTARGETED ADS YET THE RESEARCH ALSO SHOWS THAT BLACK CONSUMERS AREN'T BLINDLY LOYAL TO STATUS BRANDS DESPITE SUCH A PERCEPTION IN THE BUSINESS WORLD WHILE 71 OF NONBLACK CONSUMERS AGREE WITH THE STATEMENT THAT ONCE I FIND A BRAND I LIKE IT IS VERY DIFFICULT TO GET ME TO CHANGE ONLY 65 OF AFRICANAMERICANS AGREED THE STUDY INCIDENTALLY ALSO FINDS THAT AFRICANAMERICAN ISN'T THE TERM MOST FAVORED BY BLACK CONSUMERS WHEN THEY REFER TO THEMSELVES ALTHOUGH THE RELATIVELY NEW TERM IS STRONGLY FAVORED AMONG THOSE UNDER 20 YEARS OLD ONLY 30 OF BLACK CONSUMERS OVERALL PREFER IT COMPARED WITH 38 WHO OPT FOR BLACK AND 20 FOR AFROAMERICAN OMNICOM GROUP'S DDB NEEDHAM CLEANED UP IN THE SC JOHNSON & SON PITCH PICKING UP AN AN ESTIMATED 40 MILLION IN HOUSEHOLDCLEANSER ADVERTISING AND PROMPTING IT TO RESIGN FROM THE CLEANSER BUSINESS OF A JOHNSON RIVAL CLOROX CO DDB RESIGNED FROM CLOROX'S SOFT SCRUB LIQUIDPLUMR AND CLOROX CLEANUP ACCOUNTS A CLOROX SPOKESMAN CONFIRMED LATE YESTERDAY THE COMPANY HE SAID IS REVIEWING ITS OPTIONS COMBINED BILLINGS FOR THE CLOROX BRANDS ARE ESTIMATED TO EXCEED 25 MILLION FOOTE CONE & BELDING COMMUNICATIONS CHICAGO AND YOUNG & RUBICAM SAN FRANCISCO WHICH HANDLE OTHER BRANDS FOR CLOROX ARE EXPECTED TO PURSUE THE BUSINESS DDB WHICH ALREADY WORKED FOR JOHNSON ON OVERSEAS ADVERTISING BESTED SISTER AGENCY BBDO AND WPP GROUP'S J WALTER THOMPSON IN WINNING THE PITCH FOR JOHNSON'S WINDEX VANISH AND DRANO BRANDS JOHNSON THREW IN A SURPRISE FOURTH BRAND DUCK BATHROOM CLEANSER AND SEVERAL INTERNATIONAL ASSIGNMENTS WHO'S NEWS JOHN HIRSCHBOECK PRESIDENT OF TEAM ONE ADVERTISING WAS NAMED AN EXECUTIVE VICE PRESIDENT OF SAATCHI & SAATCHI ADVERTISING'S NORTH AMERICAN OPERATIONS TOM CORDNER 48 YEARS OLD AND SCOTT GILBERT 39 WERE NAMED COCHAIRMEN OF TEAM ONE THE EL SEGUNDO CALIF OFFICE OF SAATCHI & SAATCHI ADVERTISING BEST KNOWN FOR ITS LEXUS CAR ADS SAATCHI & SAATCHI ADVERTISING IS A UNIT OF SAATCHI & SAATCHI CO AUDI AUDI OF AMERICA INC SAID IT SELECTED JONESLUNDIN A CHICAGOBASED CONSULTING FIRM TO AID IN ITS AD AGENCY REVIEW OF ITS 28 MILLION ACCOUNT LAST MONTH AUDI FIRED OMNICOM'S DDB NEEDHAM ITS AGENCY FOR ALMOST A QUARTERCENTURY A NEW STUDY INDICATES THAT BLACK CONSUMERS AREN'T AS BRAND LOYAL AS MOST MARKETERS HAD ASSUMED THEY TEND TO BE ACTIVE SHOPPERS AND TURN TO ADVERTISING FOR INFORMATION MORE THAN NONBLACKS THE FIGURES BELOW REPRESENT THE PERCENTAGE OF PEOPLE WHO AGREE WITH THE FOLLOWING STATEMENTS SEE RELATED LETTER LETTERS TO THE EDITOR WESTERN UNION'S TIES TO BLACK COMMUNITY WSJ MAY 25 1993 9304090067 YY93 MM05 9305260154 930419 COMPUTERS HUMPHREY BOGART AND MR SPOCK GIVE USERS A TASTE OF MULTIMEDIA AGE TO COME BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL COMING SOON TO A PERSONAL COMPUTER NEAR YOU CAPTAIN KIRK DOROTHY AND TOTO THE FLINTSTONES EVEN DARTH VADER AND THE TERMINATOR FOR SOME TIME NOW COMPUTER COMPANIES HAVE BEEN TRYING TO SELL SOPHISTICATED PC SETUPS THAT CAN HANDLE AUDIO AND VIDEO DATA HOPING TO GIVE COMPUTERS A HIGHTECH HOLLYWOOD GLITTER BUT WHILE CONSUMERS WAIT FOR THIS MUCHHYPED WORLD OF MULTIMEDIA TO GET REAL THEY'RE DISCOVERING A LOWERTECH WAY TO BRING POP CULTURE TO THEIR PC SCREENS IMPULSEBUY SOFTWARE THAT PERFORMS USEFUL OR FRIVOLOUS CHORES WHILE IT HIGHLIGHTS WELLKNOWN TELEVISION MOVIE AND CARTOON CHARACTERS ANALYSTS SAY THE NASCENT CATEGORY IS ANOTHER SIGN THAT COMPUTERS ARE BECOMING A FAMILIAR PART OF EVERYDAY LIFE POP CULTURE FIGURES HELP MAKE THE PC MORE COZY SAYS TIM BAJARIN OF CREATIVE STRATEGIES RESEARCH INTERNATIONAL WE'RE TURNING TO THE THINGS WE ALREADY KNOW JUST AS IMPORTANT THE POP CULTURE TREND IS ESTABLISHING A HEALTHY NICHE FOR SMALL SOFTWARE HOUSES AND PROVIDING A FINANCIAL WINDFALL FOR MOVIE STUDIOS AND OTHER LICENSERS OF FAMOUS CHARACTERS SOFTWARE IS OFTEN A FAIRLY EXPENSIVE IMPULSE BUY 70 FOR A DAILY PLANNER FEATURING CHARACTERS FROM THE CATHY COMIC STRIP FOR EXAMPLE SINCE LICENSERS REAP AVERAGE ROYALTIES OF ABOUT 85 ON EVERY SOFTWARE SALE SAYS KAREN RAUGUST EDITOR OF LICENSING LETTER THE EMERGING AREA HAS A LOT OF POTENTIAL LICENSING POPULAR CHARACTERS TO SOFTWARE COMPANIES CAN BE VERY LUCRATIVE AGREES NEIL NEWMAN WHO HANDLES THE TASK FOR PARAMOUNT COMMUNICATIONS INC EVERYONE IN HOLLYWOOD IS LOOKING AT IT THEY CAN'T HELP BUT SEE THE RESPONSE EARLY PRODUCTS ARE HAVING A GLANCE AT THE BESTSELLER LISTS CONFIRMS THE TREND ONE OF THE BIGGEST SOFTWARE HITS OF RECENT MONTHS FOR INSTANCE HAS BEEN BERKELEY SYSTEMS INC'S STAR TREK THE SCREEN SAVER WHICH KEEPS A PC'S SCREEN BUSY SO THAT PERMANENT IMAGES WON'T BURN INTO ITS PHOSPHORESCENT COATING WHEN A COMPUTER HAS BEEN IDLE FOR A WHILE CHARACTERS FROM THE CULT TV SERIES WANDER ONTO THE SCREEN MR SPOCK MAY TAKE TRICORDER READINGS OF VARIOUS FILES OCCASIONALLY MUTTERING FASCINATING OR THE CUDDLY BUT NOTORIOUSLY FERTILE TRIBBLES MAY MULTIPLY UNTIL THEY FILL THE SCREEN OTHER STRONGSELLING ENTRIES HAVE INCLUDED BITSTREAM INC'S PACKAGES OF SPECIALEDITION FONTS WHICH DETERMINE THE FORMAT OF TYPE ON COMPUTER SCREENS AND LASER PRINTERS BITSTREAM'S POP CULTURE ROSTER INCLUDES TYPEFACES USED IN THE STAR TREK MOVIES AND TV SERIES ANOTHER BITSTREAM OFFERING FLINTSTONES TYPEFACES LICENSED FROM HANNABARBERA PRODUCTIONS INC FEATURING ROCKHEWN LETTERS DRAPED WITH CHARACTERS SUCH AS PEBBLES AND DINO GOOD FOR PRINTING CHILDREN'S PARTY INVITATIONS AND FLIERS SCHWARZENEGGER'S GROWL SOUND SOURCE UNLIMITED INC SELLS AUDIOCLIPS 48 PACKAGES OF LICENSED SOUND BITES FROM VARIOUS MOVIES INCLUDING STAR WARS AND 2001 A SPACE ODYSSEY PC USERS CAN DESIGNATE A SOUND TO BE PLAYED WHEN THEY PERFORM A CERTAIN ACTION CAROLCO PICTURES INC HAS LICENSED CLIPS FROM TERMINATOR 2 JUDGMENT DAY FOR EXAMPLE SO THAT ARNOLD SCHWARZENEGGER MIGHT GROWL HASTA LA VISTA BABY WHENEVER A FILE IS CLOSED SOUND SOURCE ALSO OFFERS 65 LICENSED VIDEO CLIPS FROM STAR WARS FOR 90 AND IT PLANS TO SELL VIDEO CLIPS FROM THE LAWNMOWER MAN AND THE WIZARD OF OZ AMAZE INC A UNIT OF DELRINA CORP OFFERS DAILY PLANNERS FEATURING CHARACTERS FROM SUCH COMIC STRIPS AS CATHY AND THE FAR SIDE WHILE THE UBIQUITOUS ENERGIZER BUNNY HAS POPPED UP IN A SCREEN SAVER FROM PC DYNAMICS INC EVEN MICROSOFT CORP HAS MUSCLED IN ON THE ACT LATELY OFFERING SEVERAL 40 PACKAGES OF POP CULTURE SOUND BITES FROM OLD MOVIES AND SUCH HANNABARBERA CARTOON CHARACTERS AS YOGI BEAR AND SCOOBY DOO AMONG THE CLASSIC CLIPS ARE MEMORABLE LINES FROM THE THIN MAN NORTH BY NORTHWEST THE MALTESE FALCON AND THE TREASURE OF THE SIERRA MADRE WHEN USERS DECIDE TO LAUNCH A PROGRAM THEY MIGHT HEAR HUMPHREY BOGART SAY PLAY IT AGAIN SAM FROM CASABLANCA IF THEY MAKE A MISTAKE THEY MIGHT HEAR I'LL GET YOU MY PRETTY FROM THE WIZARD OF OZ WE'RE DELIGHTED WITH OUR INVOLVEMENT WITH POP CULTURE AND WE INTEND TO KEEP ON DOING IT SAYS PETER MOLLMAN DIRECTOR OF INTELLECTUAL PROPERTY DEVELOPMENT LICENSED CHARACTERS HAVE BEEN POPPING UP IN SOFTWARE FOR SOME YEARS NOW BUT UNTIL RECENTLY THEY HAD BEEN LIMITED TO GAMES AND CHILDREN'S EDUCATIONAL SOFTWARE THE LATEST BATCH OF LICENSED PRODUCTS BY CONTRAST IS SLANTED TOWARD SERIOUS COMPUTER USERS EVEN IF IN MANY CASES THEY HAVE A FRIVOLOUS EDGE FOR SMALL SOFTWARE PRODUCERS LICENSING A POP CULTURE ICON IS AN EASY WAY TO COUNTER THE MARKETING CLOUT OF BIGGER RIVALS OR TO STAND OUT AMONG A PLETHORA OF SIMILAR NONAME PRODUCTS OFTEN THE REWARD FOR RECOGNIZABLE PACKAGING IS MORE SHELF SPACE IN SOFTWARE STORES OR EVEN A COVETED SPOT BY THE CHECKOUT THIS BUSINESS ISN'T KNOWN FOR NAME RECOGNITION SAYS VINCENT BITETTI CHIEF EXECUTIVE OFFICER OF SOUND SOURCE WHICH SELLS ITS POP CULTURE AUDIOCLIPS IN DELIBERATELY OVERSIZED PACKAGES WE'RE TRYING TO ATTRACT CUSTOMERS TO THE BOX OF COURSE SOFTWARE MAKERS PAY A PREMIUM FOR THAT PRIVILEGE LICENSING FEES CAN EAT UP ANYWHERE FROM 5 TO 25 OF THE WHOLESALE VALUE OF A PRODUCT DEPENDING ON THE PROPERTY SAYS A SPOKESMAN FOR AMAZE THE DAILYPLANNER MAKER IT CHANGES THE ENTIRE BUSINESS MODEL SAYS WES BOYD PRESIDENT OF BERKELEY SYSTEMS AND THAT'S VERY DANGEROUS IF YOU GET A PRODUCT THAT DOESN'T PULL ITS WEIGHT BESIDES PROVIDING AN EDGE OVER RIVALS POP CULTURE TIEINS CAN WIDEN THE AUDIENCE FOR AN ARCANE PRODUCT SUCH AS BITSTREAM'S FONT PACKAGES SEEING FRED FLINTSTONE ON A BOX WAKENS SOMETHING IN PEOPLE WHO MIGHT NOT OTHERWISE BE INTERESTED SAYS A SPOKESWOMAN FOR BITSTREAM AND THAT PROVIDES AN EXTRA BENEFIT AFTER FOOLING AROUND WITH BITSTREAM'S BEDROCK FONT PC USERS SHOULD REALIZE THAT THEY CAN CHANGE TYPEFACES AT WILL AND MAY RETURN FOR THE COMPANY'S MORE CONVENTIONAL FONTS MOST COMPANIES SAY THE POP CULTURE TREND PROBABLY WON'T SWEEP INTO EVERYDAY BUSINESS SOFTWARE SUCH AS SPREADSHEETS AND WORD PROCESSORS BUT ANALYSTS NOTE THAT SOME SERIOUS CATEGORIES ALREADY INVOLVE FAMOUS NAMES ANDREW TOBIAS'S MANAGING YOUR MONEY FROM MECA SOFTWARE INC FOR EXAMPLE THEY SAY IT ISN'T SUCH A HUGE LEAP TO IMAGINE LEGAL SOFTWARE THAT WOULD BE SOLD UNDER AN LA LAW BRAND NAME AND IN THE FUTURE MR BAJARIN OF CREATIVE STRATEGIES SAYS THE RISE OF A NEW FORM OF ARTIFICIAL INTELLIGENCE KNOWN AS AGENTS COULD CREATE EVEN MORE INTRIGUING OPPORTUNITIES FOR LICENSING AN AGENT IS A PIECE OF SOFTWARE THAT ACTS AS A KIND OF SECRETARY OR GUIDE ANTICIPATING USERS' NEEDS AND PERFORMING TASKS WITHOUT BEING ASKED SORTING THROUGH ELECTRONIC MAIL AND NOTIFYING USERS ONLY ABOUT IMPORTANT MESSAGES FOR EXAMPLE IN MANY DEMONSTRATIONS INCLUDING A FAMOUS APPLE COMPUTER INC VIDEO AGENTS ARE PRESENTED AS SYNTHETIC PEOPLE WHO SPEAK DIRECTLY TO A PC USER MR BAJARIN THINKS SUCH AGENTS COULD EASILY BE HOLLYWOOD CHARACTERS LIKE THE HAL COMPUTER IN 2001 A SPACE ODYSSEY ONLY THE HIGHLEVEL FRINGE OF HOLLYWOOD HAS STARTED TO IMAGINE WHAT CAN BE DONE HERE SAYS MR BAJARIN WHO NOTES THAT SHOWBUSINESS AGENTS HAVE STARTED INSERTING NEW CONTRACTUAL CLAUSES FOR CLIENTS WHO COULD END UP IN COMPUTERIZED FORMATS INDEED THORNY COPYRIGHT ISSUES MUST BE SOLVED BEFORE POP CULTURE LICENSING TAKES OFF IN A BIGGER WAY AT SOUND SOURCE FOR INSTANCE MR BITETTI SAYS HE NEGOTIATED FOR HIS AUDIOCLIPS NOT ONLY WITH HOLLYWOOD STUDIOS BUT ALSO WITH ACTORS AND MUSICIANS WHO WERE NERVOUS THAT THEIR WORK WOULD BE MANIPULATED IN BAD WAYS BY PC USERS BUT IF SUCH OBSTACLES CAN BE OVERCOME THE PAYOFF COULD BE HEFTY A VIRGIN MARKET FOR SOFTWARE MARKETERS WHO KNOW HOW TO PUSH THE RIGHT POP CULTURE BUTTONS SAYS BERKELEY SYSTEMS' MR BOYD WE'VE PROVED THAT PEOPLE WILL BUY SOMETHING FROM THE GUT JUST BECAUSE THEY WANT IT SEE RELATED LETTER LETTERS TO THE EDITOR MUST REMEMBER THIS WSJ MAY 25 1993 9304190179 YY93 MM05 9305260151 930421 GOING STRAIGHT CHRISTIAN GROUPS PRESS GAY PEOPLE TO TAKE A HETEROSEXUAL PATH PENTECOSTAL MINISTRIES CLAIM SUCCESSES IN SOME CASES BUT THE ROAD IS DIFFICULT TORMENTS OF FAILED ATTEMPTS BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL HAYWARD CALIF HALF A DOZEN MEN ARE SITTING IN A CIRCLE IN A PENTECOSTAL CHURCH IN THIS SUBURB OF SAN FRANCISCO A 31YEAROLD ONETIME MISSIONARY WHO STILL ASPIRES TO SPREAD THE WORD IS TALKING ABOUT HIS 12YEAR STRUGGLE AGAINST HIS OWN HOMOSEXUALITY I'VE BEATEN MYSELF UP FOR IT AGAIN AND AGAIN HE SAYS CLUTCHING A THIN BOOKLET CALLED OVERCOMING HOMOSEXUALITY USING THE 14 STEPS HE CONFESSES IT'S NOT WORKING AND I DON'T KNOW WHY THE OTHERS REGULARS AT THIS FRIDAYNIGHT SUPPORT GROUP ARE SYMPATHETIC THEY KNOW THE TEMPTATIONS OF THE FLESH AND THE DAMNATION THEY FIGURE AWAITS THOSE WHO SUCCUMB IT'S A MATTER OF WILL SAYS ONE YOU HAVE TO MAKE THE CHOICE MAYBE SUGGESTS ANOTHER IT IS DEMONIC POSSESSION THE ERSTWHILE MISSIONARY'S EYES GROW WATERY HE HAS BEGGED GOD TO FREE HIM HAS SURROUNDED HIMSELF WITH CHRISTIANS AND SPENT A MONTH IN AN INPATIENT TREATMENT PROGRAM BUT NOTHING HAS WORKED AND THINKING ABOUT IT JUST MAKES IT WORSE ESPECIALLY AT THESE MEETINGS I'M HAVING SEX I'M HAVING FUN AND I DON'T FEEL BAD ABOUT IT HE CONFESSES NOT GETTING AIDS IS ALL I CARE ABOUT SILENCE PREVAILS THE OTHER MEMBERS STARE AT THEIR PAMPHLETS OR FIDGET I JUST WANT GOD TO ACCEPT ME HE SAYS FINALLY BUT HEAVENLY BLESSING ISN'T AN OPTION HERE DESPITE THE GROWING VISIBILITY OF GAY MEN AND LESBIANS IN US SOCIETY THE ONLY ROAD TO SALVATION FOR HOMOSEXUALS AT THE FOURSQUARE PENTECOSTAL CHURCH IS THE ROUTE URGED BY AN ARCHIPELAGO OF FUNDAMENTALIST BIBLE FELLOWSHIPS POPPING UP ACROSS THE COUNTRY SALVATION THROUGH CHANGE THROUGH THE EMBRACE OF HETEROSEXUALITY I DON'T THINK THERE'S ANYBODY WHO CAN'T CHANGE IF THEY JUST RELAX AND LET GOD DO WHAT HE WANTS SAYS FRANK WORTHEN 64 A PIONEER OF THE CHANGE MOVEMENT WHO REJECTED HOMOSEXUALITY AND MARRIED AT THE SAME TIME MANY MENTALHEALTH PROFESSIONALS AND FORMER MEMBERS OF CHANGE GROUPS WARN THAT ALMOST NOBODY'S SEXUAL ORIENTATION TRULY CHANGES AND THAT THE ROAD FROM HOMOSEXUALITY TO ATTEMPTED HETEROSEXUALITY IS LITTERED WITH FAILURE AND SUFFERING THEY TELL OF PEOPLE DROWNED IN SELFHATE OF FAMILIES SUNDERED WHEN HOMOSEXUALS TRY MARRIAGES THAT FLOP SOME HOMOSEXUALS DISTRAUGHT THAT THEY CAN'T CURE THEMSELVES HAVE COMMITTED SUICIDE THEY'RE DESTROYING PEOPLE'S LIVES SAYS JOHN EVANS REFERRING TO THE CHANGE MOVEMENT HE IS A FORMER COLLEAGUE OF MR WORTHEN'S IN ONE OF THE FIRST EXGAY MINISTRIES BUT NOW NO LONGER HIDES HIS HOMOSEXUALITY IF YOU DON'T DO THEIR THING YOU'RE NOT OF GOD YOU'LL GO TO HELL THEY'RE LIVING IN A FANTASY WORLD UNDER THE UMBRELLA ORGANIZATION OF EXODUS INTERNATIONAL A NONDENOMINATIONAL CONFEDERATION OF FUNDAMENTALIST GROUPS THE EVANGELICAL EXGAY MOVEMENT NOW HAS 65 MINISTRIES WITH CHAPTERS AS FAR AWAY AS EUROPE ASIA AND THE SOUTH PACIFIC MANY ALUMNI HAVE MARRIED AND HAD CHILDREN NOT AS A SUBTERFUGE THEY SAY BUT AS A TRUE EXPRESSION OF THEIR NEWFOUND HETEROSEXUALITY ALTHOUGH OTHER CHRISTIAN GROUPS OFFER WHAT THEY CONSIDER DELIVERANCE TO HOMOSEXUALS EXODUS WHICH CLAIMS TO HAVE HAD MORE THAN 100000 REQUESTS FOR HELP SINCE IT WAS FOUNDED IN 1976 IS THE LARGEST BECAUSE THERE HAVE BEEN NO FOLLOWUP STUDIES SUPPORTERS AND OPPONENTS ALIKE DEPEND ON ANECDOTE TO MAKE THEIR CASES CENTRAL TO THE DISPUTE IS WHETHER HOMOSEXUALITY IS VOLITIONAL SOMETHING THAT THE INDIVIDUAL CHOOSES OR CAN CHANGE HIS OR HER MIND ABOUT RECENT STUDIES HAVE CLAIMED TO FIND PHYSICAL DIFFERENCES IN THE BRAINS OF GAY AND STRAIGHT MEN AND SOME RESEARCHERS BELIEVE THAT HORMONE LEVELS BEFORE BIRTH MIGHT TIP A PERSON'S SEXUAL ORIENTATION SUCH BIOLOGICAL THEORIES ARE AT LOGGERHEADS WITH THE TRADITIONAL FREUDIAN VIEW TO WHICH MANY IN THE EXGAY MOVEMENT SUBSCRIBE THAT HOMOSEXUALITY ARISES IN EARLY IN CHILDHOOD AND IS THUS A FORM OF ARRESTED PSYCHOSEXUAL DEVELOPMENT THAT MIGHT YIELD TO THERAPY THERE'S NO LINK BETWEEN APES AND MEN AND THERE'S NO LINK BETWEEN HOMOSEXUALITY AND BIOLOGY DECLARES MR WORTHEN A FIRM BELIEVER THAT BEING GAY IS A CHOICE SOME EVANGELICAL EXGAYS BELIEVE THAT EVEN IF HOMOSEXUALITY SHOULD PROVE TO BE DETERMINED AT BIRTH THE BIBLE MERELY CONDEMNS ITS PRACTICE THUS THE GOOD CHRISTIAN CAN ATTAIN GRACE BY RESISTING HIS IMPULSES YOU CAN STILL CHOOSE ABSTINENCE SAYS ONE EXGAY SEXUAL ORIENTATION ISN'T NECESSARILY A CLEAR EITHER/OR PROPOSITION A FEDERALLY FINANCED STUDY WIDELY REPORTED LAST WEEK FOUND THAT ABOUT 23 OF A SAMPLE OF US MEN BETWEEN THE AGES OF 20 AND 39 SAID THEY HAD ENGAGED IN HOMOSEXUAL ACTS IN THE PAST 10 YEARS AND THAT 11 CONSIDERED THEMSELVES TO BE EXCLUSIVELY HOMOSEXUAL THIS NEW ALAN GUTTMACHER INSTITUTE SURVEY ATTRACTED CONSIDERABLE ATTENTION BECAUSE IT FOUND FEWER HOMOSEXUALS IN THE POPULATION THAN THE OFTCITED KINSEY REPORT OF 1948 DID WHATEVER THE NUMBERS PROFESSIONALS AREN'T SANGUINE ABOUT THE POSSIBILITIES OF MAKING THE LEAP FROM GAY TO STRAIGHT FOR SOMEONE WHO HAS BEEN EXCLUSIVELY HOMOSEXUAL NOT BISEXUAL OR SOMEWHERE ELSE ALONG THE SPECTRUM OF SEXUALITY YOU SIMPLY CANNOT DO IT BY VOLUNTARY CHOICE SAY JOHN W MONEY EMERITUS PROFESSOR OF MEDICAL PSYCHOLOGY AT JOHNS HOPKINS SCHOOL OF MEDICINE IT'S AMAZING HOW FIXED IT IS MANY PEOPLE IN THE EXGAY MOVEMENT SAY THEY WERE DEFINITELY ALBEIT UNHAPPILY HOMOSEXUAL RICHARD A ISAY 55 A CLASSICALLY TRAINED FREUDIAN AND CORNELL MEDICAL COLLEGE PROFESSOR WENT THROUGH A DECADE OF THERAPY TRYING TO CHANGE HIS OWN SEXUALITY HE MARRIED AND HAD TWO CHILDREN BEFORE DIVORCING AND CONCLUDING THAT HE IS GAY IN THE 20 YEARS SINCE HE HAS DONE A LOT OF WORK WITH GAY PATIENTS OFTEN TRYING TO ALLAY THE ANXIETY AND DEPRESSION THAT HE BELIEVES IS CAUSED BY REPARATIVE COUNSELING I THINK IT'S THE GREATEST ABUSE OF PSYCHIATRY IN AMERICA TODAY SAYS DR ISAY WHO IS ALSO CHAIRMAN OF THE AMERICAN PSYCHIATRIC ASSOCIATION'S GAY LESBIAN AND BISEXUAL ISSUES COMMITTEE THE ATTEMPT TO CHANGE IS EXTREMELY HARMFUL TO BE YOUNG AND GAY BEING GAY EVEN IN AN AGE OF OPENNESS IS NOT EASY UNTIL 1973 THE APA REGARDED HOMOSEXUALITY AS A MENTAL ILLNESS SOMETIMES TREATABLE WITH AVERSIVE ELECTRIC SHOCKS EVEN TODAY GAY YOUTHS ARE TWO TO THREE TIMES MORE LIKELY TO ATTEMPT SUICIDE THAN STRAIGHT YOUTHS ACCORDING TO A STUDY BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE ACTIVIST NATIONAL GAY AND LESBIAN TASK FORCE SAYS THAT MANY GAY YOUTHS ARE FORCED TO LEAVE HOME BY PARENTS BECAUSE OF THEIR HOMOSEXUALITY EXGAYS SAY SUCH TURMOIL IS THE PREDICTABLE RESULT OF AN UNNATURAL LIFESTYLE NOT AN ARTIFACT OF PREJUDICE AND SOCIAL STIGMA GAY FUNDAMENTALIST CHRISTIANS FACE THE ADDED ANGUISH OF RELIGIOUS CONDEMNATION MR WORTHEN HAS KNOWN THAT ANGUISH SINCE HE WAS 13 AND HIS FATHER DIED YOUNG FRANK WORTHEN WENT TO WORK AFTER SCHOOL AS A JANITOR AT A SAN JOSE DISCIPLES OF CHRIST CHURCH HE RECALLS THE PASTOR TELLING HIM HE COULD TELL HE WAS GAY BUT HE SAYS HE RESISTED THE TEMPTATION TO ACT OUT HIS IMPULSES UNTIL HE BECAME AN ADULT IN THE LATE 1940S AND THREW HIMSELF INTO SAN FRANCISCO'S THENFURTIVE GAY SCENE IT WAS A REAL ADVENTURE FOR A YOUNG KID HE REMEMBERS BUT BY THE TIME HE WAS 40 HE SAYS SEVERAL OF HIS FRIENDS HAD KILLED THEMSELVES THERE WERE BARS WHERE THEY CHECKED YOUR ID AND IF YOU WERE 40 YOU COULDN'T GET IN HE SAYS IT GOT TO BE PRETTY LONELY MR WORTHEN OWNED SEVERAL IMPORT STORES AND HAD A CAREER BUYING AND SELLING REAL ESTATE BUT HE FELT SPIRITUALLY ISOLATED LEAVING HIS OFFICE ONE EVENING WITH PLANS TO GO TO A NEW BATHHOUSE MR WORTHEN SAYS HE FELT GOD'S PRESENCE WELLING UP INSIDE HIM HE WENT INSTEAD TO A BIBLE FELLOWSHIP WITH AN EMPLOYEE OF HIS AND SOON HE BECAME A REGULAR CHURCHGOER ONE DAY ANOTHER PARISHIONER CONFESSED THAT HE SNEAKED OUT ON HIS WIFE TO GO TO GAY BARS AND IT OCCURRED TO MR WORTHEN THAT HE MIGHT PLAY A ROLE IN HELPING PEOPLE OUT OF HOMOSEXUALITY HE RAN AN AD IN A BERKELEY SEX PAPER OFFERING SUCH ASSISTANCE SIXTY PEOPLE RESPONDED MR WORTHEN MR EVANS AND OTHERS FORMED LOVE IN ACTION AN EXGAY MINISTRY IN SAN RAFAEL CALIF MR WORTHEN SAYS HE HAS NEVER REGRETTED HIS OWN CHANGE HAS NEVER FALTERED IN HIS BELIEF IN THE POWER OF THE HOLY SPIRIT TO HEAL HOMOSEXUALS HE HAS BEEN MARRIED NOW FOR EIGHT YEARS MY MARRIAGE IS ABSOLUTELY WONDERFUL HE SAYS BUT AFTER TWO YEARS AT LOVE IN ACTION MR EVANS NOW 58 REALIZED HE COULD NEVER BECOME HETEROSEXUAL AND LEFT THE GROUP THE WORST YEARS OF MY LIFE HE SAYS I WAS TRYING TO BE SOMETHING GOD NEVER WANTED ME TO BE AND GOD KNOWS I TRIED JACK MCINTYRE ALSO TRIED BUT WITH TRAGIC CONSEQUENCES MR MCINTYRE GAY AND CHRISTIAN FEARED AN ETERNITY IN HELL HE SPENT FOUR YEARS IN LOVE IN ACTION FIGHTING HIS PASSION FOR MEN AND WOUND UP IN THE PSYCHIATRIC WARD AT MARIN GENERAL HOSPITAL THERE IN 1977 AT AGE 46 HE RECORDED HIS THOUGHTS IN A LETTER NO MATTER HOW MUCH I PRAYED AND TRIED TO AVOID THE TEMPTATION I CONTINUALLY FAILED I LOVE LIFE BUT MY LOVE FOR THE LORD IS SO MUCH GREATER THE CHOICE IS SIMPLE TO CONTINUALLY GO BEFORE GOD AND ASK FOR FORGIVENESS AND MAKE PROMISES YOU KNOW YOU CAN'T KEEP IS MORE THAN I CAN TAKE I FEEL IT IS MAKING A MOCKERY OF GOD AND ALL HE STANDS FOR IN MY LIFE IN ROOM 104 HE GAVE HIMSELF COMMUNION SWALLOWED A LETHAL NIGHTCAP OF VALIUM AND DALMANE TRANQUILIZERS AND SLEEPING PILLS AND LAY DOWN ON A COUCH TO A QUIET DEATH SOME GAY MEN AND LESBIANS WHO CLAIM TO HAVE CHANGED SAY THEY CONSTANTLY BATTLE THE DEMONS OF DESIRE I DON'T KNOW IF I'LL EVER HAVE THE INTENSITY FOR SEX WITH WOMEN THAT THE AVERAGE MAN ON THE STREET HAS SAYS JOHN PAULK A SEVENYEAR MEMBER OF LOVE IN ACTION MR PAULK HAD BEEN A PROSTITUTE A FEMALE IMPERSONATOR NAMED CANDI AND AN ALCOHOLIC WHO TRIED TO KILL HIMSELF BEFORE HE DECIDED TO BECOME STRAIGHT AND MARRY AN EXLESBIAN HE MET IN CHURCH LAST YEAR I HAD NO SEXUAL INTEREST IN WOMEN AT ALL HE SAYS BUT WHEN YOU BEGIN A RELATIONSHIP WITH A WOMAN THAT YOU BELIEVE GOD HAS LED YOU TO THEN YOU DEVELOP ATTRACTION TO THAT PERSON TO SAY THAT WE'VE ARRIVED AT THIS PLACE OF TOTAL HETEROSEXUALITY THAT WE'RE TOTALLY HEALED IS MISLEADING SOME CALL IT A LIE JACK PANTALEO IS A FOUNDER OF THE SAN FRANCISCO CHAPTER OF EVANGELICALS CONCERNED A NONDENOMINATIONAL GROUP THAT CONDONES MONOGAMOUS SAMESEX RELATIONSHIPS THE PROBLEM ISN'T HOMOSEXUALITY SAYS MR PANTALEO A FUNDAMENTALIST CHRISTIAN IT'S GLUTTONY IT'S SEXUAL ADDICTION MR PANTALEO HAD BELONGED TO EXODUS FOR FOUR MONTHS AT ONE POINT DURING MEETINGS EVERYONE SAID THINGS WERE GETTING BETTER HE SAYS BUT AFTERWARD MEN WOULD CONFESS TO HIM THAT THEIR STRUGGLES WERE AS BAD AS EVER STILL MANY TRY FAIL AND KEEP TRYING IN THE EARLY 1970S COLIN COOK A SEVENTHDAY ADVENTIST MINISTER RESIGNED FROM THE CHURCH WHEN HE COULD NO LONGER HARMONIZE HIS GAY LIAISONS WITH HIS RELIGIOUS BELIEFS MR COOK SAYS HE HAD SEX WITH MORE THAN 1000 MEN IN A FRENZIED DECADE BEFORE HE DECIDED THAT HIS BEHAVIOR WAS WRONG AND STARTED HOMOSEXUALS ANONYMOUS A CHRISTIAN SUPPORT GROUP FOR EXGAYS WITH MORE THAN 40 CHAPTERS IN THE US AND ABROAD THEN ONE DAY HE FELT AROUSED BY A WOMAN AS THEY WALKED THROUGH A FIELD TOGETHER ON A WARM DAY I COULD HAVE JUMPED OVER THE MOON HE REMEMBERS I FELT LIKE AN ADOLESCENT FOUR YEARS LATER AT 38 HE MARRIED A WOMAN WHO KNEW ABOUT HIS GAY PAST BUT OVER THE NEXT SEVERAL YEARS MR COOK WAS GIVING NUDE MASSAGES TO MEN HE WAS SUPPOSED TO BE LEADING AWAY FROM THE DESERT OF HOMOSEXUALITY AT HIS SPIRITUAL REDOUBT QUEST LEARNING CENTER IN READING PA HE SAYS THE MASSAGES INVOLVED ABOUT 30 OUT OF 250 MEN WHOM HE WAS TRYING TO DESENSITIZE TO THE PLEASURES OF MALE FLESH IT BECAME EROTIC TO ME AND I WAS NOT ADMITTING IT HE SAYS WHEN SOME OF THE MEN TALKED PUBLICLY ABOUT THEIR SEXUAL EXPERIENCES WITH HIM MR COOK RESIGNED FROM THE CENTER WHICH CLOSED AFTER THE SEVENTHDAY ADVENTIST CHURCH WITHDREW ITS SUBSIDY MRS COOK BEAT HIS CHEST WITH HER HANDS WHEN SHE FOUND OUT YOU'VE TAKEN 12 YEARS OF MY LIFE SHE CRIED SIX MONTHS LATER HE WAS AGAIN MINISTERING TO GAYS UNDER STRICT CHURCH SUPERVISION THREE YEARS OF THERAPY SINCE THEN HAVE ALSO HELPED HIM BECOME 98 FREE OF MALE FANTASIES MR COOK SAYS AND THIS YEAR MR AND MRS COOK WHO HAVE TWO SONS CELEBRATED THEIR 14TH ANNIVERSARY FOR YEARS THE EXGAY MOVEMENT HAS BEEN BEDEVILED BY STORIES OF STEALTH COUPLINGS BETWEEN MEMBERS OFTEN AFTER MEETINGS AND AT CONVENTIONS JIM BROOKS WHO SAYS HE HAD ONLY ONE GAY RELATIONSHIP 21 YEARS AGO SAYS THE FEELINGS THAT HE THOUGHT HE HAD DAMMED UP OVER THE YEARS CAME FLOODING BACK WHEN HE BEGAN COUNSELING OTHER WOULDBE EXGAYS IN SAN FRANCISCO FIVE YEARS AGO SATAN WOULD REALLY WANT TO GET ME TO FALL SEXUALLY WITH ANOTHER MAN TO DESTROY THE WORK OF OUR MINISTRY HE SAYS BEATTHEDEVIL NIGHT IS FRIDAY AT THE FOURSQUARE PENTECOSTAL CHURCH IN HAYWARD WHERE 14 MEN AND WOMEN YOUNG AND OLD VETERANS OF TEMPESTUOUS HOMOSEXUAL LIFESTYLES AND THOSE WHO NEVER ACTED BUT HAVE LONG ANGUISHED OVER THEIR FANTASIES GATHER TO PRAY AWAY THEIR SEXUAL DESIRES THEY SING SONGS READ BIBLE VERSES AND BREAK INTO DISCUSSION GROUPS THE MEN TALK ABOUT WHY THEY BECAME GAY ABOUT CHILDHOOD TORMENTS ABOUT DISTANT FATHERS AN OLDER MAN TELLS OF THE JOURNAL HE KEPT OF HIS SUB ROSA HOMOSEXUAL LIFE HIS WIFE FOUND THE DIARY AND READ IT TO FRIENDS RELATIVES AND THEIR CHILDREN WHO STOPPED SPEAKING TO HIM I RAISED THEM TO BELIEVE BEING GAY WAS WRONG HE SAYS HIS SHOULDERS RISING AND FALLING WITH A DEEP BREATH NOW THEY DON'T UNDERSTAND SEE RELATED LETTERS LETTERS TO THE EDITOR AIDS AND DEEP DENIAL WSJ MAY 26 1993 9304210108 YY93 MM05 9305260126 930414 BUSINESS BRIEF UNION CARBIDE CONTINUING COST CUTS AGREES TO SELL ORGANOSILICON DIVISION DANBURY CONN UNION CARBIDE CORP AS PART OF A PLAN TO CUT COSTS AND SELL NONCORE BUSINESSES SAID IT AGREED TO SELL ITS ORGANOSILICON DIVISION TO DLJ MERCHANT BANKING PARTNERS LP FOR 220 MILLION IN CASH AND 80 MILLION IN CONVERTIBLE PREFERRED STOCK IN THE NEW COMPANY WHICH WILL BE CALLED OSI SPECIALTIES INC ROBERT D KENNEDY CHAIRMAN OF THE DANBURY CONN CHEMICAL AND PLASTICS COMPANY SAID THAT WITH THE SALE CARBIDE WILL HAVE COMPLETED AN ASSET SALE PROGRAM ANNOUNCED IN 1991 AND AIMED AT CUTTING INTEREST COSTS AND REDUCING DEBT FACED WITH STEEP CYCLICAL DOWNTURNS IN ITS MAIN POLYETHYLENE AND ETHYLENE GLYCOL BUSINESSES CARBIDE IS TRYING TO CUT COSTS ANY WAY IT CAN LAST YEAR UNION CARBIDE SPUN OFF TO SHAREHOLDERS ITS INDUSTRIAL GASES DIVISION WHICH WAS RENAMED PRAXAIR INC AND USED ROUGHLY 1 BILLION IN DEBT REPAYMENTS FROM PRAXAIR TO REDUCE TOTAL DEBT TO 147 BILLION FROM 244 BILLION UNION CARBIDE SAID IT WILL REALIZE AN ASYETUNSPECIFIED GAIN ON THE SALE OF THE DIVISION INDUSTRY ANALYSTS ESTIMATED ORGANOSILICON'S OPERATING INCOME AT 20 MILLION TO 30 MILLION LAST YEAR THE SILICONE UNIT'S SALE TO THE MERCHANT BANKING FUND UNIT OF THE NEW YORK SECURITIES FIRM DONALDSON LUFKIN & JENRETTE INC SURPRISED SOME INDUSTRY ANALYSTS WHO EXPECTED THE BUYER TO BE A US OR EUROPEAN INDUSTRIAL COMPANY THIS SUGGESTS THEY MAY BRING IT PUBLIC SAID ROBERT REITZES AN ANALYST WITH CJ LAWRENCE INC IN NEW YORK CATHERINE CONROY A DLJ SPOKESWOMAN SAID THAT THE BUSINESS MIGHT MAKE AN IDEAL PUBLIC OFFERING CANDIDATE AT SOME DATE IN THE FUTURE THE PREFERRED STOCK UNION CARBIDE RECEIVES WILL BE CONVERTIBLE INTO 30 OF THE COMMON SHARES OF THE SILICONE PRODUCTS COMPANY UNION CARBIDE SHARES CLOSED AT 18625 UP NEARLY 63 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY DONALDSON LUFKIN & JENRETTE A SUBSIDIARY OF INSURER EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES SAID THAT DAVID BARTON WHO MOST RECENTLY RAN THE SPECIALTY CHEMICALS DIVISION OF INTERNATIONAL SPECIALTY PRODUCTS INC WILL BECOME CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT OF OSI SPECIALTIES THOMAS P LEYDEN VICE PRESIDENT AND GENERAL MANAGER OF THE SILICONE BUSINESS FOR UNION CARBIDE WILL BECOME EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER SEE RELATED LETTER LETTERS TO THE EDITOR CARBIDE COSTCUTTING WSJ MAY 25 1993 9304140104 YY93 MM05 9305260105 930413 DRUCKER ON MANAGEMENT WE NEED TO MEASURE NOT COUNT BY PETER F DRUCKER QUANTIFICATION HAS BEEN THE RAGE IN BUSINESS AND ECONOMICS THESE PAST 50 YEARS ACCOUNTANTS HAVE PROLIFERATED AS FAST AS LAWYERS YET WE DO NOT HAVE THE MEASUREMENTS WE NEED NEITHER OUR CONCEPTS NOR OUR TOOLS ARE ADEQUATE FOR THE CONTROL OF OPERATIONS OR FOR MANAGERIAL CONTROL AND SO FAR THERE ARE NEITHER THE CONCEPTS NOR THE TOOLS FOR BUSINESS CONTROL IE FOR ECONOMIC DECISION MAKING IN THE PAST FEW YEARS HOWEVER WE HAVE BECOME INCREASINGLY AWARE OF THE NEED FOR SUCH MEASUREMENTS AND IN ONE AREA THE OPERATIONAL CONTROL OF MANUFACTURING THE NEEDED WORK HAS ACTUALLY BEEN DONE TRADITIONAL COST ACCOUNTING IN MANUFACTURING NOW 75 YEARS OLD DOES NOT RECORD THE COST OF NONPRODUCING SUCH AS THE COST OF FAULTY QUALITY OR OF A MACHINE BEING OUT OF ORDER OR OF NEEDED PARTS NOT BEING ON HAND YET THESE UNRECORDED AND UNCONTROLLED COSTS IN SOME PLANTS RUN AS HIGH AS THE COSTS THAT TRADITIONAL ACCOUNTING DOES RECORD BY CONTRAST A NEW METHOD OF COST ACCOUNTING DEVELOPED IN THE PAST 10 YEARS CALLED ACTIVITYBASED ACCOUNTING RECORDS ALL COSTS AND IT RELATES THEM AS TRADITIONAL COST ACCOUNTING CANNOT TO VALUE ADDED WITHIN THE NEXT 10 YEARS IT SHOULD BE IN GENERAL USE AND THEN WE WILL HAVE OPERATIONAL CONTROL IN MANUFACTURING BUT THIS CONTROL WILL BE IN MANUFACTURING ONLY WE STILL WILL NOT HAVE COST CONTROL IN SERVICES SCHOOLS BANKS GOVERNMENT AGENCIES HOSPITALS HOTELS RETAIL STORES RESEARCH LABS ARCHITECTURAL FIRMS AND SO ON WE KNOW HOW MUCH A SERVICE TAKES IN HOW MUCH IT SPENDS AND ON WHAT BUT WE DO NOT KNOW HOW THE SPENDING RELATES TO THE WORK THE SERVICE ORGANIZATION DOES AND TO ITS RESULTS ONE OF THE REASONS THE COSTS OF HOSPITALS COLLEGES AND THE POST OFFICE ARE OUT OF CONTROL YET IN EVERY DEVELOPED COUNTRY TWOTHIRDS TO THREEQUARTERS OF TOTAL OUTPUT EMPLOYMENT AND COSTS ARE IN SERVICES A FEW BIG BANKS ARE JUST BEGINNING TO IMPLEMENT COST ACCOUNTING FOR SERVICES THOUGH RESULTS SO FAR ARE QUITE SPOTTY WE HAVE FOUND OUT A FEW IMPORTANT THINGS IN CONTRAST TO COST ACCOUNTING IN MANUFACTURING COST ACCOUNTING FOR SERVICES WILL HAVE TO BE TOPDOWN STARTING WITH THE COST OF THE ENTIRE SYSTEM OVER A GIVEN PERIOD HOW THE WORK IS ORGANIZED MATTERS FAR MORE THAN IT DOES IN MANUFACTURING QUALITY AND PRODUCTIVITY ARE AS IMPORTANT TO COST IN SERVICES AS IS QUANTITY OF OUTPUT IN MOST SERVICES TEAMS ARE THE COST CENTER RATHER THAN INDIVIDUALS OR MACHINES AND IN SERVICES THE KEY IS NOT COST BUT COST EFFECTIVENESS BUT THESE ARE STILL ONLY BEGINNINGS EVEN IF WE HAD THE MEASUREMENTS WE NEED FOR MANUFACTURING AND FOR SERVICES WE WOULD STILL NOT HAVE TRUE OPERATIONAL CONTROL WE WOULD STILL TREAT THE INDIVIDUAL ORGANIZATION THE MANUFACTURER THE BANK THE HOSPITAL AS THE COST CENTER BUT THE COSTS THAT MATTER ARE THE COSTS OF THE ENTIRE ECONOMIC PROCESS IN WHICH THE INDIVIDUAL MANUFACTURER BANK OR HOSPITAL IS ONLY A LINK IN THE CHAIN THE COSTS OF THE ENTIRE PROCESS ARE WHAT THE ULTIMATE CUSTOMER OR THE TAXPAYER PAYS AND WHAT DETERMINES WHETHER A PRODUCT A SERVICE AN INDUSTRY OR AN ECONOMY IS COMPETITIVE A LARGE PART OF THESE COSTS ARE INTERSTITIAL INCURRED BETWEEN SAY THE PARTS SUPPLIER AND MANUFACTURER OR BETWEEN THE MANUFACTURER AND DISTRIBUTOR AND RECORDED BY NEITHER THE COST ADVANTAGE OF THE JAPANESE DERIVES IN CONSIDERABLE MEASURE FROM THEIR CONTROL OF THESE COSTS WITHIN A KEIRETSU THE FAMILY OF SUPPLIERS AND DISTRIBUTORS CLUSTERED AROUND A MANUFACTURER TREATING THE KEIRETSU AS ONE COST STREAM LED FOR INSTANCE TO JUSTINTIME PARTS DELIVERY IT ALSO ENABLED THE KEIRETSU TO SHIFT OPERATIONS TO WHERE THEY ARE MOST COST EFFECTIVE PROCESSCOSTING FROM THE MACHINE IN THE SUPPLIER'S PLANT TO THE CHECKOUT COUNTER IN THE STORE ALSO UNDERLIES THE PHENOMENAL RISE OF WALMART IT RESULTED IN THE ELIMINATION OF A WHOLE SLEW OF WAREHOUSES AND OF REAMS OF PAPERWORK WHICH SLASHED COSTS BY A THIRD BUT PROCESSCOSTING REQUIRES A REDESIGN OF RELATIONSHIPS AND CHANGES IN HABITS AND BEHAVIOR IT REQUIRES COMPATIBLE ACCOUNTING SYSTEMS WHERE ORGANIZATIONS NOW PRIDE THEMSELVES ON HAVING THEIR OWN UNIQUE METHOD IT REQUIRES CHOOSING WHAT IS COST EFFECTIVE RATHER THAN WHAT IS CHEAPEST IT REQUIRES JOINT DECISIONS WITHIN THE ENTIRE CHAIN AS TO WHO DOES WHAT SIMILARLY DRASTIC ARE THE CHANGES NEEDED FOR EFFECTIVE MANAGERIAL CONTROL BALANCE SHEETS WERE DESIGNED TO SHOW WHAT A BUSINESS WOULD BE WORTH IF IT WAS LIQUIDATED TODAY BUDGETS ARE MEANT TO ENSURE THAT MONEY IS SPENT ONLY WHERE AUTHORIZED WHAT MANAGEMENTS NEED HOWEVER ARE BALANCE SHEETS THAT RELATE THE ENTERPRISE'S CURRENT CONDITION TO ITS FUTURE WEALTHPRODUCING CAPACITY BOTH SHORTTERM AND LONGTERM MANAGEMENTS NEED BUDGETS THAT RELATE PROPOSED EXPENDITURES TO FUTURE RESULTS BUT ALSO PROVIDE FOLLOWUP INFORMATION THAT SHOWS IF PROMISED RESULTS HAVE ACTUALLY BEEN ACHIEVED SO FAR WE HAVE ONLY BITS AND PIECES THE CASHFLOW FORECAST FOR EXAMPLE OR THE ANALYSIS OF PROPOSED CAPITAL INVESTMENTS NOW HOWEVER FOR THE FIRST TIME SOME LARGE MULTINATIONAL COMPANIES AMERICAN AND EUROPEAN ARE BEGINNING TO PUT THESE PIECES TOGETHER INTO GOINGCONCERN BALANCE SHEETS AND GOINGCONCERN BUDGETS BUT MOST NEEDED AND TOTALLY LACKING ARE MEASUREMENTS TO GIVE US BUSINESS CONTROL FINANCIAL ACCOUNTING BALANCE SHEETS PROFITANDLOSS STATEMENTS ALLOCATION OF COSTS ETC ARE AN XRAY OF THE ENTERPRISE'S SKELETON BUT MUCH AS THE DISEASES WE MOST COMMONLY DIE FROM HEART DISEASE CANCER PARKINSON'S DO NOT SHOW UP IN A SKELETAL XRAY A LOSS OF MARKET STANDING OR A FAILURE TO INNOVATE DO NOT REGISTER IN THE ACCOUNTANT'S FIGURES UNTIL THE DAMAGE HAS BEEN DONE WE NEED NEW MEASUREMENTS CALL THEM A BUSINESS AUDIT TO GIVE US EFFECTIVE BUSINESS CONTROL WE NEED MEASUREMENTS FOR A COMPANY OR INDUSTRY THAT ARE AKIN TO THE LEADING INDICATORS AND LAGGING INDICATORS THAT ECONOMISTS HAVE DEVELOPED DURING THE PAST HALFCENTURY TO PREDICT THE DIRECTION IN WHICH THE ECONOMY IS LIKELY TO MOVE AND FOR HOW LONG FOR THE FIRST TIME BIG INSTITUTIONAL INVESTORS INCLUDING SOME OF THE VERY LARGE PENSION FUNDS ARE WORKING ON SUCH CONCEPTS AND TOOLS TO MEASURE THE BUSINESS PERFORMANCE OF THE COMPANIES IN WHICH THEY INVEST THESE ARE ONLY BEGINNINGS AND SO FAR EACH OF THESE AREAS IS BEING WORKED ON SEPARATELY INDEED THE PEOPLE WORKING IN ONE FIELD FOR EXAMPLE PENSION FUNDS MAY NOT EVEN BE AWARE OF THE WORK DONE IN OTHER AREAS IT MAY TAKE MANY YEARS DECADES PERHAPS UNTIL WE HAVE THE MEASUREMENTS WE NEED IN ALL THESE AREAS BUT AT LEAST WE KNOW NOW THAT WE NEED NEW MEASUREMENTS AND WHAT THEY HAVE TO BE SLOWLY AND STILL GROPING WE ARE MOVING FROM COUNTING TO MEASURING MR DRUCKER IS A PROFESSOR OF SOCIAL SCIENCES AT THE CLAREMONT GRADUATE SCHOOL IN CALIFORNIA SEE RELATED LETTER LETTERS TO THE EDITOR BALANCE SHEETS' HISTORICAL COST' WSJ MAY 25 1993 9304130010 YY93 MM05 9305260087 930426 THE NEW INQUISITORS BY BERNARD D DAVIS REP JOHN DINGELL D MICH AND HIS STAFF HAVE MADE A HABIT OVER THE YEARS OF USING CONGRESSIONAL POWER TO ALLEGE A CRISIS OF INTEGRITY IN AMERICAN SCIENCE IN THE PROCESS THEY HAVE HOUNDED FEDERALLY FUNDED RESEARCHERS IN THE NAME OF PROTECTING THE TAXPAYER THE REMOVAL OF DAVID BALTIMORE AS PRESIDENT OF NEW YORK'S ROCKEFELLER UNIVERSITY IS PERHAPS THE MOST INFAMOUS CONSEQUENCE OF DINGELL TARGETING BUT AT LEAST TWO DINGELL FRAUDBUSTERS LAB SCIENTISTS WHO TESTIFIED BEFORE REP DINGELL ON THE BALTIMORE CASE ARE THEMSELVES WORTHY OF THE KIND OF SCRUTINY THAT THE DINGELL TEAM HAS APPLIED TO OTHERS WALTER STEWART AND NED FEDER A SCIENTIST AND A MEDICAL DOCTOR CONDUCTING RESEARCH AT THE NATIONAL INSTITUTES OF HEALTH HAVE EARNED REPUTATIONS AS WHISTLEBLOWERS IN THE SCIENTIFIC COMMUNITY BUT SOME SCIENTISTS HAVE LATELY COME TO THINK THAT MR STEWART AND DR FEDER THEMSELVES ARE GUILTY OF CRUCIAL ERRORS OF JUDGMENT INVOLVING THEIR USE OF TIME AND NIH RESOURCES THE AUTHORS HAVE PREPARED AND DISTRIBUTED WIDELY THEIR UNPUBLISHED ATTACKS ON THE WORK OF SOME COLLEAGUES A PROTEST FROM A MOST UNEXPECTED SOURCE OUTSIDE SCIENCE HAS NOW PROVOKED WIDER DISCUSSION OF THE ISSUE RECENTLY THE NIH CLOSED THE LABORATORY OF THESE TWO INVESTIGATORS AND REASSIGNED THEM TO UNDERSTAND THE STEWARTFEDER STORY IT HELPS TO LOOK BACK A BIT THE SCIENTISTS USED A BASE AT THE NIH SPECIFICALLY AT THE NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY DISEASES FOR WORK ON A COMPUTER PROGRAM TO DETECT PLAGIARIZED PHRASES IN SCIENTIFIC PUBLICATIONS THE PROGRAM SCANNED AND COMPARED TEXTS THE VALUE OF THIS PROGRAM SEEMS DOUBTFUL SINCE IN SCIENCE UNLIKE LITERATURE PLAGIARISM MEANS PRIMARILY THE THEFT OF IDEAS RATHER THAN OF PHRASES BUT THE INVENTORS MADE THE SITUATION EVEN ODDER WHEN THEY ATTEMPTED BROADER NONSCIENTIFIC USES FOR THEIR PROGRAM THEY MOVED INTO THE FIELD OF HISTORY WHEN THEY TURNED TO A 1985 BIOGRAPHY OF ABRAHAM LINCOLN PUBLISHED BY UNIVERSITY OF MASSACHUSETTS PROF STEPHEN OATES THEIR WORK ON TAXPAYER TIME YIELDED A 1400PAGE DOCUMENT THAT SAID THE OATES BOOK CONTAINED PLAGIARISM THIS CHARGE HAD BEEN RAISED EARLIER AGAINST PROF OATES BY PEOPLE WITHIN HIS FIELD AND HAD BEEN REJECTED BY COMMITTEES OF HIS PEERS RESPONDING RECENTLY TO MR STEWART AND DR FEDER PROF OATES POINTED OUT IN AN UNPUBLISHED REBUTTAL THAT NONE OF THEIR CITED INSTANCES OF COPYING AMOUNTED TO AS MUCH AS AN ENTIRE SENTENCE BUT APART FROM QUESTIONING THEIR CRITERIA FOR PLAGIARISM HIS PROTEST PRESENTED THE NIH WITH A DEEPER CHALLENGE ON WHAT GROUNDS DID THE INSTITUTION ALLOW THEM TO SPEND ITS MONEY TO INVESTIGATE PLAGIARISM AND TO ATTACK A SCHOLAR'S REPUTATION IN A FIELD SO FAR FROM ITS MISSION THE NIH HAD TO DO SOMETHING ABOUT THIS SEVERE CRITICISM MR STEWART AND DR FEDER ORIGINALLY DEVELOPED THEIR STRONG INTEREST IN MISCONDUCT AFTER A LONG PERIOD OF DISAPPOINTMENT IN THEIR OWN RESEARCH THEY HAD UNDERTAKEN AN UNORTHODOX PROGRAM ON INBREEDING SNAILS FOR RESEARCH ON THE NERVOUS SYSTEM A DATA BASE SEARCH SHOWS THAT THEIR EFFORTS UNFORTUNATELY YIELDED ONLY ONE PAPER IN 15 YEARS IT IS NOT UNUSUAL FOR A BRILLIANT AND COURAGEOUS INVESTIGATOR TO HAVE A STERILE PERIOD BUT IT IS MOST UNUSUAL TO BE WILLING TO PERSIST OR TO BE ALLOWED TO PERSIST IN AN UNPRODUCTIVE FULLTIME RESEARCH PROGRAM FOR THAT LONG EVENTUALLY MR STEWART AND DR FEDER SHIFTED PART OF THEIR ACTIVITIES TO THE PROBLEM OF PROMOTING HIGHER STANDARDS IN SCIENTIFIC PUBLICATION THEIR FIRST CONTRIBUTION ON A CELEBRATED CASE OF FRAUD BY JOHN DARSEE AT HARVARD MEDICAL SCHOOL FOCUSED NOT ON THE CRIME WHICH HAD BEEN ACKNOWLEDGED BUT ON THE CARELESSNESS OF DR DARSEE'S COAUTHORS WHO HAD FAILED TO DETECT INTERNAL INCONSISTENCIES IN PAPERS THAT CARRIED THEIR NAMES THIS CONTRIBUTION WAS HIGHLY ORIGINAL AND VALUABLE IT DID NOT DESTROY ANY REPUTATIONS AND IT NO DOUBT HELPED TO RAISE STANDARDS AND DISCOURAGE HONORARY AUTHORSHIP MR STEWART AND DR FEDER NEXT TURNED TO THE CASE OF DR BALTIMORE A POSTDOCTORAL FELLOW MARGOT O'TOOLE HAD FIRST DEMANDED RETRACTION OF A PAPER ON IMMUNOLOGY THE REGULATION OF ANTIBODY FORMATION BY DR BALTIMORE AND HIS COLLABORATOR DR THEREZA IMANISHIKARI BUT THE STEWARTFEDER ATTACKS CHARGING THAT DR IMANISHIKARI MADE SERIOUS ERRORS AND TREATED DATA IMPROPERLY CARRIED GREAT WEIGHT BECAUSE THESE CRITICS PRESUMABLY WERE MORE DISINTERESTED THAN THE AGGRIEVED COMPLAINANT AND BROUGHT MORE PROFESSIONAL EXPERTISE TO THE ANALYSIS MANY SCIENTISTS HOWEVER BELIEVED THAT THE STEWARTFEDER CRITICISMS HAD FOCUSED ON TRIVIA JUST AS IS NOW EVIDENT IN THE OATES EXPERIENCE MR STEWART AND DR FEDER'S SCIENTIFIC ANALYSIS OF THE BALTIMORE PAPER WAS WEAK AT THAT TIME NATURE MAGAZINE REJECTED THE ARTICLE ACTING AS SELFAPPOINTED POLICEMEN THE PAIR THEN DISTRIBUTED THIS DAMAGING MATERIAL WIDELY AT GOVERNMENT EXPENSE IN PRINCIPLE DR BALTIMORE MIGHT AS PROF OATES DID LATER HAVE DEMANDED THAT THE NIH RESTRAIN THEIR ACTIVITIES INDEED SUCH ACTION WOULD HAVE BEEN QUITE LOGICAL ESPECIALLY SINCE REP DINGELL WAS BECOMING INCREASINGLY CONCERNED WITH FRAUD IN SCIENCE AS A CAUSE OF WASTE OF TAX FUNDS BUT REP DINGELL BROUGHT IN THE SECRET SERVICE WHICH CLAIMED TO FIND UNEQUIVOCAL EVIDENCE THAT DR IMANISHIKARI HAD FALSIFIED HER RESEARCH RETROACTIVELY AS A RESULT DR BALTIMORE RETRACTED PARTS OF THE PAPER AS FOR DR IMANISHIKARI THE NIH WITHDREW HER ELIGIBILITY FOR RESEARCH GRANTS MR STEWART AND DR FEDER HOWEVER WERE ON THE CORRECT SIDE OF THE POLITICAL ISSUE OF SCIENTIFIC MISCONDUCT IN FACT REP DINGELL LATER ARRANGED FOR THE NIH TO ASSIGN MR STEWART TO HIS CONGRESSIONAL OFFICE FOR OVER A YEAR TO STUDY DR IMANISHIKARI'S NOTEBOOKS DR BALTIMORE EVENTUALLY RESIGNED FROM ROCKEFELLER UNIVERSITY BUT THE FACTS OF HIS CASE REMAIN FAR FROM CLEAR SOME MONTHS AGO WELL AFTER HIS RESIGNATION EXPERTS CALLED IN AS CONSULTANTS INCLUDING A FORENSIC SPECIALIST AND THE EDITOR OF A RELEVANT SCIENTIFIC JOURNAL PROVIDED A REBUTTAL TO THE SECRET SERVICE REPORT THESE EXPERTS DENOUNCED ITS KEY EVIDENCE INVOLVING THE AGE OF INK ON PAPER AS THOROUGHLY UNCONVINCING NOT LONG AFTER THE US ATTORNEY'S OFFICE DECIDED NOT TO PROCEED WITH A PLANNED CRIMINAL INDICTMENT WITH THIS COLLAPSE OF THE LEGAL PRESUMPTION OF GUILT DR BALTIMORE INFORMALLY WITHDREW HIS EARLIER RETRACTION OF THE PAPER AND THE NIH HAS VERY RECENTLY RESTORED DR IMANISHIKARI'S ELIGIBILITY FOR RESEARCH GRANTS MOREOVER SHE HAS BEEN CONTINUING THE EARLIER WORK AND THIS MONTH SHE PUBLISHED TWO PAPERS THAT EXPLAINED SOME PREVIOUSLY PUZZLING FEATURES THIS IS IN THE BEST SCIENTIFIC TRADITION SETTLING ARGUMENTS BY FURTHER EVIDENCE RATHER THAN BY RECRIMINATIONS AND POLITICAL INQUISITIONS THE OBVIOUS LESSON IS THAT WHILE WHISTLEBLOWERS DESERVE BETTER TREATMENT THAN THEY HAVE OFTEN RECEIVED IN THE PAST WE MUST LEARN TO PROTECT EQUALLY THE ACCUSED AND THE ACCUSER THIS ATTITUDE REQUIRES A HEALTHY SKEPTICISM TOWARD MORALISTIC ZEALOTS THE SECOND LESSON IS THAT SCIENTISTS ARE NOT VERY GOOD AT POLITICS AND THEY HAVE NOT BEEN EFFECTIVE AT OPPOSING ABUSE OF GOVERNMENTAL POWER AND RESOURCES WE ARE FORTUNATE THAT SOME COLLEAGUES IN OTHER AREAS LIKE PROF OATES ARE ON HAND TO DEFEND THESE PRINCIPLES DR DAVIS EMERITUS PROFESSOR AT HARVARD MEDICAL SCHOOL IS WRITING A BOOK ON THE BALTIMORE AFFAIR SEE RELATED LETTER LETTERS TO THE EDITOR A RISK TO CHALLENGING POWERFUL SCIENTISTS WSJ MAY 4 1993 SEE RELATED LETTER LETTERS TO THE EDITOR THE DREADED PLAGIARISM WORD' WSJ MAY 25 1993 9304260179 9305040068 YY93 MM05 9305260082 930423 POTOMAC WATCH AFTER 100 DAYS MOUNT RUSHMORE IS STILL SAFE BY PAUL A GIGOT TO APPRECIATE BILL CLINTON'S CLOUT CONSIDER THAT BEFORE THEIR EASTER RECESS SENATE REPUBLICANS THOUGHT THEY'D HAVE TO END THEIR FILIBUSTER BY OFFERING A SPENDINGBILL COMPROMISE OF 87 BILLION TWO WEEKS LATER AFTER PRESIDENTIAL STUMPING DAILY WHITE HOUSE THREATS AND CABINET PHONE CALLS THEY OFFERED ONLY 6 BILLION MR CLINTON'S MAIN ALBEIT REMARKABLE ACHIEVEMENT IN THIS LOSING FIGHT WAS MAKING GOP SENS JAMES JEFFORDS AND ARLEN SPECTER SEEM PRINCIPLED FOR OPPOSING HIM DID SOMEONE SAY FDR NEARING ITS FIRST 100 DAYS THE CLINTON PRESIDENCY IS WEAKER AT A COMPARABLE POINT THAN ANY SINCE GERALD FORD WHO DIDN'T WIN AN ELECTION TOO HARSH EVERETT CARLL LADD THE POLITICAL SCIENTIST AND POLLING ANALYST CALLS IT THE WORST 100 DAYS SINCE WARREN G HARDING BY ANY REASONABLE STANDARD THE POLLS SUPPORT HIS VIEW MR CLINTON HAS A DISAPPROVAL RATING AT 100 DAYS RANGING FROM 34 TO ABOVE 40 DOUBLE THAT OF ANY OTHER PRESIDENT IN THE HISTORY OF POLLING FORD EXCEPTED THE WASHINGTON PRESS CORPS HAS TIPTOED AROUND THIS EMERGING TRUTH LEST IT OFFEND GEORGE STEPHANOPOULOS BUT MANY CLINTON SUPPORTERS ON THE OUTSIDE WERE WHISPERING WORRIEDLY EVEN BEFORE HIS SENATE FLOP HERE'S A COMPENDIUM OF THEIR CONCERNS THE REAL PUBLIC MOOD IS REVEALED IN THE NEW NBCWALL STREET JOURNAL POLL BY 50 TO 38 VOTERS PREFER LOWER TAXES FOR FEWER FEDERAL SERVICES OVER HIGHER TAXES FOR MORE SERVICES AS MR CLINTON'S HIGHTAX HIGHSPEND PROPOSALS SINK IN WITH THE PUBLIC HIS POPULARITY JUST SINKS MR KUTTNER IS RIGHT IT'S IMPOSSIBLE TO FIND A DEMOCRATIC INTEREST GROUP THAT ISN'T THRILLED WITH BILL THE EXTREME GREENS TROUNCED ENERGY SECRETARY HAZEL O'LEARY ON GREENHOUSE EMISSIONS TEACHERS' UNIONS ROLLED RICHARD RILEY TO GET NATIONAL SCHOOL NOT STUDENTTEST STANDARDS AND THE AFLCIO IS ELATED WITH ROBERT REICH PEROT VOTERS ARE LESS IMPRESSED WHAT'S NOT COMING THROUGH CLEARLY IS A GOVERNING PHILOSOPHY BASED ON THE NEW DEMOCRAT PRINCIPLES THAT PROVED SO SUCCESSFUL IN THE CAMPAIGN SAYS WILL MARSHALL HEAD OF THE PROGRESSIVE POLICY INSTITUTE ERSTWHILE CLINTON THINK TANK CANDIDATE CLINTON SAID PARENTS SHOULD TAKE RESPONSIBILITY FOR VACCINATING THEIR CHILDREN PRESIDENT CLINTON WANTS TO NATIONALIZE THE VACCINE INDUSTRY THEREBY SUBSIDIZING RICH FAMILIES BUT DOING NOTHING ABOUT PARENTS WHO WON'T BRING CHILDREN TO GET SHOTS SUCH MINDLESS DOGOODISM COMES FROM THE CHILDREN'S DEFENSE FUND AND MARIAN WRIGHT EDELMAN THE FIRST LADY'S FIRST PAL SEN RUSS FEINGOLD IS A LIBERAL FRESHMAN WHO LIKES MOST OF THE CLINTON AGENDA BUT HE'S ALSO FROM WISCONSIN WHERE VOTERS WANT SPENDING CUTS SO HE'S BEGUN A CAMPAIGN TO SAVE ONE OF MR CLINTON'S FEW CUTS IN MOHAIR SUBSIDIES A WORLD WAR II LEFTOVER BECAUSE HE FEARS THE ADMINISTRATION WILL BLINK I'M ALREADY SEEING SIGNIFICANT RETREAT ON TIMBER SALES GRAZING FEES THE PROPOSED CONSOLIDATION OF PUBLIC BROADCASTING AND OTHER THINGS MR FEINGOLD SAYS IF ALL OF THIS SEEMS SEVERE LET'S ALSO GIVE MR CLINTON HIS DUE MR MARSHALL GIVES HIM DESERVED CREDIT FOR TRYING TO FACE THE COUNTRY'S TOUGHEST CHALLENGES WHICH GEORGE BUSH JUST IGNORED HE IS ALSO SMART ENERGETIC AND PERSONALLY CHARISMATIC ONE FORMER AIDE LIKES TO SAY MR CLINTON IS INCAPABLE OF SUSTAINED ERROR SO THERE'S A CHANCE HE'LL CHANGE COURSE THE WAY HE DID AFTER LOSING REELECTION IN ARKANSAS IN 1980 HE COULD YET PRESENT A HEALTHCARE PLAN THAT ATTRACTS REPUBLICANS BY AVOIDING PRICE CONTROLS AND HEAVY TAXES PICK A SISTER SOULJAHSTYLE FIGHT WITH SOME LIBERAL INTEREST GROUP PROMOTE AN AMBITIOUS WELFARE REFORM REPLACE HIS DOOMED INVESTMENTTAX CREDIT BY AGREEING TO INDEX CAPITAL GAINS FOR INFLATION OR ASK HILLARY TO LEAD A NATIONAL CAMPAIGN AGAINST TEENAGE PREGNANCY SUCH AT LEAST IS THE HOPE FOR CLINTON II SEE RELATED LETTER LETTERS TO THE EDITOR ASTUTE' I'LL ACCEPT WSJ MAY 26 1993 9304230124 YY93 MM05 9305260077 930412 ABREAST OF THE MARKET FRUSTRATED INVESTORS PRESS SEARCH FOR NEW SAFE' STOCKS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SEARCH FOR SAFE STOCKS GOES ON FOR YEARS INVESTORS COUNTED ON THE LIKES OF INTERNATIONAL BUSINESS MACHINES PHILIP MORRIS AND MERCK TO CONSISTENTLY DELIVER FAT PROFITS BIG DIVIDENDS AND RISING SHARE PRICES OVER THE LONG HAUL THEY ALSO LIKED THE REASSURANCE THAT EVEN IN MARKET SLUMPS THOSE STOCKS WOULDN'T FALL MUCH SUCH STOCKS WERE AS CLOSE TO BEING SAFE AS AN INVESTOR COULD FIND BUT IN RECENT MONTHS THOSE AND OTHER SEEMINGLY SAFE ISSUES HAVE GIVEN INVESTORS A BEATING THEY'LL LONG REMEMBER NOW THE QUESTION IS ARE THERE ANY SAFE STOCKS LEFT OF COURSE NO STOCK IS ENTIRELY RISKFREE BUT WALL STREET ANALYSTS SAY A NEW BREED OF SAFE STOCKS IS EMERGING UNLIKE THE BIG NAMES OF THE PAST THAT ENDURED FOR DECADES THOUGH THIS NEXT GENERATION PROBABLY WILL HAVE A MUCH SHORTER LIFE SPAN WITH TECHNOLOGICAL AND PRODUCT INNOVATIONS OCCURRING SO RAPIDLY FEW COMPANIES CAN CLING TO THEIR FRANCHISES AS EASILY AND FOR AS LONG AS PHILIP MORRIS AND IBM DID THE BIRTH AND BOOM IN PERSONAL COMPUTERS TOOK A FEW YEARS NOT GENERATIONS OR DECADES OBSERVES MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER IF COMPANIES DON'T KEEP ALERT THEY RISK FALLING BEHIND IN A LARGELY UNREGULATED WORLD SAFE STOCKS WILL BE COMPANIES THAT HAVE A MONOPOLY OR QUASIMONOPOLY IN THEIR INDUSTRIES EVEN THOUGH SOME MONEY MANAGERS THINK AMERICAN TELEPHONE & TELEGRAPH IS PRICEY TODAY ANALYSTS SUGGEST INVESTORS BUY THE STOCK ON PULLBACKS DEEMING IT A SAFE INVESTMENT BECAUSE THE COMPANY CONTROLS 61 OF THE NATION'S LONGDISTANCE TELEPHONE MARKET WITH AT&T YOU HAVE TREMENDOUS VOLUME GROWTH AND DOUBLEDIGIT PROFIT GROWTH AND ALL OF THIS IS ACCOMPLISHED WITHOUT PRICE INFLATION SAYS JACK GRUBMAN A TELEPHONE ANALYST AT PAINEWEBBER HE THINKS THE STOCK CAN CLIMB TO 70 OVER THE NEXT 12 TO 18 MONTHS FROM ITS CURRENT LEVEL OF 58 3/4 AT&T IS A COMPANY THAT WILL GROW 12 TO 13 A YEAR TILL THE COWS COME HOME HE SAYS ALTHOUGH AT&T DOESN'T OFFER THE FASTPACED GROWTH OF AN MCI COMMUNICATIONS WHICH MR GRUBMAN ALSO LIKES HE SAYS THAT STEADY 12 GROWTH IN AN ENVIRONMENT OF LOW INTEREST RATES AND LOW INFLATION ISN'T ANYTHING TO SNIFF AT WHAT'S MORE ANOTHER ATTRACTIVE FEATURE OF AT&T IS THAT INSTITUTIONAL OWNERSHIP OF THE STOCK IS SURPRISINGLY LOW ACCORDING TO LASZLO BIRINYI WHO HEADS A FINANCIAL SERVICES FIRM BEARING HIS NAME THAT AFFORDS TWO ADVANTAGES IF THE STOCK FALLS OUT OF FAVOR THERE WON'T BE THE KIND OF HEAVY SELLING THAT TORPEDOED PHILIP MORRIS MORE IMPORTANT IT SUGGESTS THAT THERE IS POTENTIALLY MUCH GREATER DEMAND FROM INSTITUTIONS FOR THE STOCK THAN IS ALREADY REFLECTED IN THE PRICE OTHER STRATEGISTS COUNT BANKS AMONG THE SAFE STOCKS OF THE 1990S PARTICULARLY BIG YET NIMBLE ONES LIKE BANC ONE AND NATIONSBANK WHICH ARE SEIZING EVERY OPPORTUNITY THEY CAN TO EXPAND THEIR FRANCHISES BY THE END OF THE DECADE WE ARE GOING TO HAVE NATIONAL BANKS THAT SPAN FROM EAST TO WEST AND NATIONSBANK WILL BE ONE OF THEM SAYS JEFFREY SHAMES PRESIDENT AND CHIEF EQUITY OFFICER AT MASSACHUSETTS FINANCIAL SERVICES KATHERINE HENSEL A BANKING ANALYST AT LEHMAN BROTHERS SAYS SHE EXPECTS REGIONAL BANKS AND PARTICULARLY NATIONSBANK AND BANC ONE TO POST MORE STABLE AND HIGHERQUALITY EARNINGS THAN OTHER COMPANIES IN THE MARKET AS THERE IS MORE UNCERTAINTY IN CONSUMER STOCKS AND MORE CERTAINTY IN THE BANK SECTOR THE MULTIPLES OF BANK STOCKS WILL EXPAND SAYS MS HENSEL SHE THINKS NATIONSBANK COULD BE ALMOST A 100 STOCK BY 1995 IT CLOSED THURSDAY AT 55 1/2 MANY INVESTORS THINK THE KEY TO A STOCK'S SAFETY IS GOOD MANAGEMENT THAT'S WHY MANY STRATEGISTS LIKE GENERAL ELECTRIC EVEN THOUGH THE STOCK AT 92 IS ALREADY TRADING AT A 52WEEK HIGH GE IS REALLY A MANAGEMENT STORY SAYS MR METZ OF OPPENHEIMER THE MANAGEMENT IS VERY VERY ADEPT AND VERY CAPABLE THE RISK TO INVESTORS HE SAYS IS WILL THE MANAGEMENT ALWAYS BE ADEPT STILL OTHERS LOOK FOR STOCKS OF COMPANIES THAT PLOW MOST OF THEIR EARNINGS BACK INTO THEIR BUSINESSES FOR THIS REASON ANALYSTS LIKE ARCHERDANIELSMIDLAND A DECATUR ILL GRAIN PROCESSOR ADM PAYS OUT ONLY 6 OF ITS PROFIT IN DIVIDENDS AND THE STOCK YIELDS A MINUSCULE 04 AN ADDED ADVANTAGE IS THAT THE STOCK IS RELATIVELY CHEAP COMPARED WITH THE BROADER MARKET AT 24 3/4 IT IS TRADING AT 148 TIMES THE PAST 12 MONTHS' EARNINGS COMPARED WITH 23 TIMES FOR STANDARD & POOR'S 500STOCK INDEX THOUGH GE AND AT&T ARE MOST FREQUENTLY MENTIONED BY ANALYSTS AS SAFE STOCKS THEY HAVE OTHER CANDIDATES TOO ONE OF THEM IS HOME DEPOT IN A PERIOD WHEN COMPANIES HAVE LITTLE ABILITY TO CONTROL THE PRICES OF THEIR PRODUCTS AND SERVICES HOME DEPOT IS GROWING BY SELLING MORE OF ITS WARES DESPITE THE STOCK'S PRICE HOME DEPOT IS THE MOST POWERFUL RETAILING CONCEPT IN AMERICA SAYS MR SHAMES OF MASSACHUSETTS FINANCIAL SERVICES MR SHAMES SAYS HOME DEPOT'S STRATEGY IS SIMILAR TO THE ONE WALMART STORES HAD A DECADE AGO IT IS TAKING ON OLDTIME HARDWARE STORES AND DRIVING THEM OUT OF BUSINESS HOME DEPOT IS FAIRLY DIFFERENT FROM MOST RETAILERS BECAUSE THEY HAVE UNIT VOLUME GROWTH FROM NEW STORES SAYS MR SHAMES ADDING THAT THE NEW STORES ALONE SHOULD GENERATE GROWTH OF 25 FOR THE NEXT THREE TO FIVE YEARS STILL SOME ANALYSTS SCOFF AT THE VERY NOTION OF A SAFE STOCK REMEMBER THERE'S A DIFFERENCE BETWEEN A REALLY GOOD COMPANY AND A SAFE COMPANY SAYS EDWARD KERSCHNER INVESTMENT STRATEGIST AT PAINEWEBBER A SAFE COMPANY IS ALMOST IMMUNE TO EXTERNAL FORCES MR KERSCHNER ARGUES THAT THE BROAD CHANGES TAKING PLACE IN THE ECONOMY TODAY ARE SO POWERFUL THAT NO COMPANY WHETHER IT IS CYCLICAL OR DEFENSIVE IS IMMUNE TO A SEA CHANGE LIKE DISINFLATION IN THE CURRENT DISINFLATIONARY ENVIRONMENT A SAFE STOCK IS AN OXYMORON MR KERSCHNER POINTS OUT THAT TWO DECADES AGO WHEN GOVERNMENT REGULATION TENDED TO GUARANTEE PROFITABILITY STOCKS IN REGULATED INDUSTRIES WERE SAFE TODAY GOVERNMENT IS CONSIDERING REGULATING MANY INDUSTRIES AGAIN BUT THIS TIME NOBODY EXPECTS GOVERNMENT'S ROLE TO BE FRIENDLY ANYBODY WHO IS IN A REGULATED INDUSTRY CAN'T BE IMMUNE TO EXTERNAL FORCES MR KERSCHNER SAYS SEE RELATED LETTER LETTERS TO THE EDITOR WE DON'T BEAT UP ON THE OLDTIMERS WSJ MAY 26 1993 9304120058 YY93 MM05 9305250162 930525 WHO'S NEWS US SURGICAL CORP US SURGICAL CORP NORWALK CONN THOMAS R BREMER 40 YEARS OLD VICE PRESIDENT AND GENERAL COUNSEL OF THIS MAKER OF SURGICAL STAPLERS AND SUTURES WAS ELECTED A DIRECTOR SUCCEEDING SENIOR VICE PRESIDENT DAVID FISHER 82 WHO RETIRED 9305250161 930525 INVESTORS PUT FAITH IN STOCKS AS HOPES FOR ECONOMY FADE SURVEY SUGGESTS THAT PEOPLE ARE SEEKING HIGHER RETURNS DESPITE THEIR PESSIMISM BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HERE'S A STOCKMARKET PARADOX SMALL INVESTORS ARE COOL ON THE ECONOMY BUT HOT ON STOCKS ACCORDING TO A SURVEY ONLY 20 OF INVESTORS POLLED BY PAINEWEBBER GROUP INC SAY THEY EXPECT BUSINESS CONDITIONS TO IMPROVE DURING THE NEXT FEW MONTHS THAT'S DOWN FROM 50 IN JANUARY AND IS THE LOWEST LEVEL IN 18 MONTHS YET 56 OF THOSE POLLED EXPECT TO BUY STOCKS AND STOCK MUTUAL FUNDS OVER THE SAME PERIOD THE SAME LEVEL AS IN JANUARY PAINEWEBBER SAYS AND JUST 5 OF THOSE SURVEYED PLAN TO BUY CASH EQUIVALENTS SUCH AS MONEYMARKET FUNDS IN THE NEXT FEW MONTHS THE LOWEST LEVEL SINCE PAINEWEBBER STARTED ITS SURVEY IN JUNE 1991 THE RESULTS VEER WITH PAST STOCKTRADING PATTERNS INDIVIDUAL INVESTORS TYPICALLY HAVE BEEN MORE LIKELY TO BUY STOCKS AMID EXPECTATIONS OF IMPROVING BUSINESS CONDITIONS WHICH BUOY COMPANIES' BOTTOM LINES NOW INVESTORS APPARENTLY FEEL THEY HAVE LITTLE CHOICE BUT TO BUY STOCKS DESPITE THEIR PESSIMISM OVER THE ECONOMY THIS APPARENT SHIFT WORRIES SOME MARKET FORECASTERS PEOPLE ARE FLOCKING TO STOCKS ALMOST OUT OF DESPERATION IN SEARCH FOR HIGHER RETURNS SAYS MICHAEL METZ INVESTMENT STRATEGIST FOR OPPENHEIMER & CO THE FACT THAT INVESTORS PLAN TO BUY MORE STOCKS EVEN AS THEY EXPECT POORER BUSINESS CONDITIONS IS A VERY CAUTIONARY FLAG FOR THE STOCK MARKET MR METZ FRETS MEANWHILE MORE INVESTORS SAY THEY PLAN TO BUY MUNICIPAL BONDS AND OTHER TAXEXEMPT SECURITIES AMID EXPECTATIONS THAT TAXES WILL RISE PAINEWEBBER SAYS NEARLY 48 OF THOSE SURVEYED SAY THEY EXPECT TO BUY TAXFREE BONDS OR TAXFREE MUTUAL FUNDS IN THE NEXT FEW MONTHS UP FROM 404 A YEAR EARLIER THE SURVEY SAYS TWOTHIRDS OF THOSE POLLED BY PAINEWEBBER EXPECT GENERIC PRODUCTS TO BECOME INCREASINGLY POPULAR IN THE NEXT FEW YEARS EVEN THOUGH INVESTORS EXPECT TO FUEL THE EQUITY MARKET PICKING THE RIGHT COMPANY COULD BECOME MORE DIFFICULT WITH THE ANTICIPATED RISE IN GENERIC PRODUCTS SAYS SHAILENDRA GHORPADE WHO DIRECTS PAINEWEBBER'S MONTHLY SURVEY OF A SAMPLE OF ITS CUSTOMERS PAINEWEBBER SURVEYS 5000 OF ITS BROKERAGE CUSTOMERS EACH MONTH MEASURING THEIR EXPECTATIONS ON INFLATION INTEREST RATES AND THE STOCK AND REAL ESTATE MARKETS AMONG OTHER THINGS 9305250160 930525 WHO'S NEWS HIS INC HIS INC NEW YORK RICHARD K HOWE 51 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MANUFACTURER OF CHIC JEANS AND SLACKS INCREASING BOARD MEMBERSHIP TO NINE MR HOWE IS PRESIDENT AND COOWNER OF PENOBSCOT BAY PROVISIONS CO A SPECIALTY FOODS WHOLESALE COMPANY BASED IN STONINGTON MAINE RICHARD K HOWE WAS ELECTED A DIRECTOR OF CHIC BY HIS INC IN YESTERDAY'S WHO'S NEWS COLUMN THE APPAREL COMPANY WAS INCORRECTLY IDENTIFIED AS HIS INC 9305250159 930525 LEISURE & ARTS ON SPORTS QUICK RELEASE SHOTS FROM THE TWILIGHT ZONE BY FREDERICK C KLEIN NEW YORK IN THE COURSE OF HUMAN EVENTS THERE ARE TIMES WHEN NONCHAMPIONSHIP GAMES OR SERIES DECIDE CHAMPIONSHIPS SUCH WAS THE CASE LAST JANUARY WHEN THE DALLAS COWBOYS BEAT THE SAN FRANCISCO 49ERS IN THE WATERLOGGED SOUP BOWL A SUPER BOWL TOURNEY SEMIFINAL THAT EVERYBODY RIGHTLY SAID WOULD PUT PRO FOOTBALL'S DESIGNATED BIG ONE IN THE SHADE SUCH AGAIN MIGHT BE THE CASE IN THE CURRENT CHICAGO BULLSNEW YORK KNICKS NATIONAL BASKETBALL ASSOCIATION SEMI SHOWDOWN TRUMPETED A NEW YORK DAILY NEWS SPECIAL SECTION ON SUNDAY BEFORE THE KNICKS BEAT THE BULLS 9890 IN GAME ONE HERE OF THE BESTOFSEVEN SET AND HOOPS FANS EVERYWHERE WERE SALIVATING WHOEVER EMERGES VICTORIOUS IN THE LEAGUE'S WESTERNHALF DUEL BETWEEN PHOENIX AND SEATTLE OUT THERE IN THE LAND OF MIDNIGHT BASKETBALL WILL BE THE PARTY OF THE SECOND PART WHEN THE FINALS FINALLY COME WHAT WE HAVE IN THE SLICK BULLS VERSUS THE ROUGHHOUSE KNICKERBOCKERS IS THE GAME'S LEADING BIG MAN NEW YORK'S PATRICK EWING AGAINST MICHAEL JORDAN THE GAME'S LEADING MAN PERIOD WE HAVE THE TWOTIMEDEFENDINGCHAMP BULLS AGAINST THE TEAM THAT BULLIED AND NEARLY BEAT THEM IN A BITTER SECONDROUND PLAYOFF MATCH LAST YEAR WE HAVE NY VS CHI BIG NAMES BIG CITIES BIG BILE LONG TV TIMEOUTS CAN YOU STAND IT THE MADISON SQUARE GARDEN CROWD OF 19763 STOOD IT QUITE WELL THANK YOU BECAUSE THEIR TEAM WON BUT THE FORMULA WASN'T EXACTLY THE ONE THAT WAS ADVERTISED TO BE SURE KNICK MUSCLE HAD ITS WAY IN THE REBOUNDING DEPARTMENT AND ITS 4828 EDGE DIDN'T SEEM TO FULLY REFLECT ITS DOMINATION BUT THE NEW YORKERS GOT THE POINTS THEY NEEDED WHEN THEY NEEDED THEM NOT FROM THEIR MESSRS BIG BUT FROM MR LITTLE AT LEAST IN NBA TERMS HE WAS JOHN STARKS A GUARD WHO IS LISTED AT SIXFOOTFIVE IN THE PROGRAM BUT LOOKS A COUPLE OF INCHES SHORTER HE SCORED 12 OF HIS TEAM'S FIRST 16 FOURTHQUARTER POINTS AND OPENED A DECISIVE NINEPOINT LEAD ON FOUR THREEPOINT SHOTS MEANING THAT EACH CARRIED 23FEETPLUS FROM HAND TO HOOP THROW IN A 20FOOTER BY EWING AND A FALLINGDOWN 11FOOTER BY ANTHONY MASON ALSO BEST KNOWN FOR HIS BRAWN AND YOU HAD A SCRIPT ROD SERLING WOULD HAVE LOVED WHEN YOU GET IN A GROOVE YOU LOOK FOR YOUR SHOT SAID STARKS A REFUGEE FROM PROFESSIONAL BASKETBALL'S MINOR LEAGUES WHO HAD A 32 SUCCESS RATE FROM THE TWILIGHT THREEPOINT ZONE DURING THE REGULAR SEASON BUT WAS FIVEFORSEVEN 71 ON SUNDAY MY STROKE WAS THERE TONIGHT A QUITEDIFFERENT POSTGAME REPORT WAS DELIVERED BY JORDAN WHO DESPITE LEADING ALL SCORERS WITH 27 POINTS SHOT A FEEBLE 10 FOR 27 FROM THE FIELD AND THREE OF 13 IN THE SECOND HALF IT WAS A COMBINATION OF GOOD D' FOR DEFENSE BY THEM AND BAD SHOOTING BY ME SAID HIS HIGHNESS SOME GAMES ARE LIKE THAT SUNDAY'S CONTEST HAD SEVERAL SURPRISES NOT THE LEAST OF WHICH WAS A POOR GAME BY A CHICAGO TEAM THAT HAD FRISKED THROUGH THE PLAYOFFS' FIRST TWO ROUNDS WITH NARY A LOSS THIS WAS A GANG THAT HAD LIMPED AND GRUMBLED THROUGH A REGULAR SEASON IN WHICH THEIR 5725 WONLOST RECORD WHILE BETTER THAN RESPECTABLE WAS A COMEDOWN FROM THE RECENT PAST THEIR COMPLAINTS RANGED FROM SORE LEGS GUARD JOHN PAXSON AND CENTER BILL CARWRIGHT TO FATIGUE OLYMPIANS JORDAN AND SCOTTIE PIPPEN TO THE GAME'S ONEBALLINPLAYATATIME LIMITATION WOULDBE SCORER HORACE GRANT TO HEAR THEM TELL IT THEY DIDN'T SO MUCH FINISH THEIR SCHEDULE AS SURVIVE IT ALL THAT SEEMED FORGOTTEN ONCE THE PLAYOFFS BEGAN THOUGH AND WHILE THEIR WONLOSTCOLUMN BETTERS ESPECIALLY THE WESTERNKING PHOENIX SUNS HAVE STRUGGLED TO ADVANCE THE BULLS STRUTTED AS IN FORMER DAYS BONKING THE ATLANTA HAWKS IN THREE STRAIGHT AND THE CLEVELAND CAVALIERS IN FOUR WHILE THE KNICKS PANTED TO PREVAIL OVER INDIANA AND CHARLOTTE THE PRICE OF DOING BETTER DURING THE REGULAR SEASON WOULD HAVE BEEN GOING INTO THE PLAYOFFS TIRED EXPLAINED PHIL JACKSON THE BULLS' CEREBRAL COACH WE CHOSE NOT TO PAY IT THE MAIN REASON THE BULLS WANTED TO BE RESTED FOR THE POSTSEASON WAS THE EXPECTATION THAT THE KNICKS WOULD AWAIT TO CALL THE BULLS' FOURGAMESTOTHREE SQUEAKER WIN OVER NEW YORK IN LAST YEAR'S TOURNEY PHYSICAL WOULD BE TO CALL THE GOODYEAR BLIMP A BALLOON THE USUAL NBA RECIPE OF ONE PART TRACK MEET TO ONE PART SUMO WRESTLING WAS DOUBLED ON THE SUMO SIDE IN THAT ONE AND WITH KNICK STRONGMEN EWING CHARLES OAKLEY CHARLES SMITH AND MASON ALL HALE A RERUN SEEMED INEVITABLE YOU'RE GOING TO BE PICKING YOURSELF UP OFF THE FLOOR A LOT IN THIS SERIES PIPPEN PREDICTED IN FACT THOUGH SUNDAY'S GO WAS NO ROUGHER THAN SAY SATURDAY NIGHT IN A MINERS' SALOON THERE WAS SOME BUMPING JAWING AND EVIL GLARES ALL ABOUT EQUALLY DISTRIBUTED BUT NO FISTICUFFS PEOPLE EXPECTED TO SEE BLOOD BUT THERE WASN'T ANY NOTED JORDAN WHAT THE PEOPLE DID SEE WAS A KNICK TEAM THAT KEPT ITS POISE IN THE FACE OF A BALLHAWKING DOUBLETEAMING CHICAGO DEFENSE SOMETHING FEW TEAMS HAVE MANAGED THESE PAST FEW CAMPAIGNS THE BULLS FORCED 23 NEW YORK TURNOVERS AND PERPETRATED 13 STEALS BUT WHEN THE KNICKS DID GET OFF THEIR SHOTS 56 OF THEM CONNECTED AND WHEN THEY MISSED THEY OFTEN GOT THE REBOUND AND A CHANCE TO TRY AGAIN THE BULLS MEANTIME FOUND THEMSELVES SHOOTING WITH LARGE HANDS IN THEIR FACES AND USUALLY MISSING THEIR 43 FIELD GOAL RATE WAS WELL BELOW THEIR USUAL STANDARDS WHEN YOU DOUBLETEAM ON DEFENSE LIKE THEY DO YOU CREATE OPENINGS SAID KNICK COACH PAT RILEY OF HIS TEAM'S ORTHODOX DEFENSIVE PHILOSOPHY THAT'S NOT OUR WAY RILEY HOWEVER ACKNOWLEDGED THAT HIS TEAM NEEDED EVERYTHING WE COULD GET TO WIN AND THAT IT MIGHT BE TOO MUCH TO EXPECT THAT THE KIND OF SHOTS THAT BROUGHT VICTORY WOULD GO IN AGAIN IN GAME TWO TONIGHT THIS KNOCKS US BACK TO REALITY SAID JORDAN WHO DOESN'T FANCY LOSING SO DON'T LOOK FOR THIS SERIES TO END QUICKLY OR QUIETLY RIGHT NOW THE WEST SEEMS FAR AWAY 9305250158 930525 PEOPLE PATTERNS BY ALAN L OTTEN BOOMERS IN RETIREMENT BABY BOOMERS WILL BE BETTER OFF IN RETIREMENT THAN THEIR PARENTS WERE BUT WILL PROBABLY BE FAR LONELIER SO ARGUE RICHARD EASTERLIN AND CHRISTINE SCHAEFFER OF THE UNIVERSITY OF SOUTHERN CALIFORNIA AND DIANE MACUNOVICH OF WILLIAMS COLLEGE THEY SAY COMPARISONS OF MALE EARNINGS OR FAMILY INCOME WHICH INDICATE BABY BOOMERS AREN'T DOING AS WELL AS THEIR PARENTS DID GIVE AN INCOMPLETE PICTURE BECAUSE THEY DON'T TAKE INTO ACCOUNT GENERATIONAL LIFESTYLE DIFFERENCES BOOMERS HAVE DELAYED MARRIAGE OR HAVEN'T GOTTEN MARRIED AT ALL THEY HAVE HAD FEWER OR NO KIDS AND IF MARRIED BOTH SPOUSES WORK IN MANY CASES THE RESEARCHERS CALCULATE AN AVERAGE INCOME PER ADULT EQUIVALENT A FIGURE THAT TAKES INTO ACCOUNT THE NUMBER OF ADULTS AND CHILDREN WHO SHARE EACH HOUSEHOLD'S INCOME USING THIS STANDARD THEY FIGURE THAT IN REAL TERMS BOOMERS TODAY ARE ABOUT TWOTHIRDS BETTER OFF THAN THEIR PARENTS WERE AT THE SAME AGES THOUGH BOOMERS DON'T YET HAVE THE HOMEOWNERSHIP WEALTH THEIR PARENTS DID BOOMERS' INCOME ADVANTAGE PROBABLY WILL LEAVE THEM BETTER OFF IN RETIREMENT THE AUTHORS SAY THEY FIGURE THE AVERAGE NET WORTH OF BABY BOOMERS BORN FROM 1946 TO 1955 WAS 52800 IN 1989 WHILE PEOPLE BORN IN 191827 HAD A NET WORTH OF 24636 IN 1989 DOLLARS AT COMPARABLE AGES BUT THE LIFESTYLE ADJUSTMENTS THAT GAVE THE BOOMERS A HIGHER STANDARD OF LIVING ALSO WILL MAKE FOR A LONELIER RETIREMENT THE PROPORTION WHO WON'T HAVE MARRIED BY AGE 65 IS PROJECTED TO BE 50 LARGER THAN IT WAS FOR THEIR PARENTS HIGH DIVORCE RATES MAKE IT FAR LESS LIKELY THAT THE RETIRED BOOMERS WILL BE LIVING WITH SPOUSES MORE CHILDLESSNESS OR FEWER CHILDREN MEAN THEY WON'T HAVE AS MANY GROWN CHILDREN AROUND ALL OF THESE FACTORS COME TOGETHER TO YIELD NEW HIGHS IN THE PROPORTION LIKELY TO LIVE ALONE IN RETIREMENT THE RESEARCHERS SAY THEY ESTIMATE THAT MORE THAN ONETHIRD OF THE MEN AND WOMEN BORN FROM 1946 TO 1955 WILL BE LIVING ALONE WHEN THEY ENTER RETIREMENT COMPARED WITH JUST OVER 20 IN THEIR PARENTS' GENERATION UNPLANNED PREGNANCIES INCREASINGLY RESULT FROM FAILURE OR INCORRECT USE OF CONTRACEPTIVES BASED ON A 1988 SAMPLING INVOLVING 8450 WOMEN OF CHILDBEARING AGE THE NATIONAL CENTER FOR HEALTH STATISTICS ESTIMATES THAT ABOUT 133 MILLION PREGNANCIES IN THE FIVE YEARS THROUGH EARLY 1988 SLIGHTLY MORE THAN HALF OF ALL PREGNANCIES DURING THAT TIME WERE UNPLANNED THIS WAS VIRTUALLY THE SAME PROPORTION AS IN A PREVIOUS SURVEY COVERING THE FIVE YEARS THROUGH EARLY 1982 BUT AT LEAST 53 OF THE UNPLANNED PREGNANCIES IN THE 1988 SURVEY SOME SEVEN MILLION RESULTED FROM INCORRECT USE OF CONTRACEPTIVES OR CONTRACEPTIVE FAILURE UP FROM NOT QUITE 40 IN THE EARLIER SURVEY THE OTHER UNPLANNED PREGNANCIES IN BOTH SURVEYS RESULTED FROM NOT USING CONTRACEPTIVES THE CENTER EMPHASIZES THAT THE RESULTS DON'T NECESSARILY MEAN EXISTING CONTRACEPTIVE METHODS HAVE BECOME INHERENTLY LESS EFFECTIVE CONTRACEPTIVE USE HAS BEEN INCREASING FOR SEVERAL DECADES AND INCORRECT USE BY NEW USERS MAY BE CONTRIBUTING TO THE INCREASE IN UNPLANNED PREGNANCIES LINDA PICCININO AN ANALYST FOR THE CENTER NOTES THAT THE PROPORTION OF UNPLANNED PREGNANCIES AMONG USERS OF THE BIRTHCONTROL PILL WAS SMALLER THAN THE PROPORTION FOR USERS OF ANY OTHER METHOD OF CONTRACEPTION NONETHELESS ONETHIRD OF PREGNANCIES AMONG PILL USERS IN THE 1988 SURVEY WERE UNPLANNED A SHARP RISE FROM 23 IN THE EARLIER SURVEY UNPLANNED PREGNANCIES ACCOUNTED FOR 45 OF ALL PREGNANCIES ENDING IN LIVE BIRTHS AND AS MIGHT HAVE BEEN EXPECTED FOR 96 OF ALL THAT ENDED IN ABORTIONS ALSO PREDICTABLY UNPLANNED PREGNANCIES RESULTING FROM FAILURE TO USE ANY METHOD OF CONTRACEPTION WAS HIGHEST AMONG WOMEN UNDER THE AGE OF 24 TEENAGE SUICIDE RATES INCREASED IN 37 OF THE 50 STATES DURING THE 1980S THE INCREASE BETWEEN 1980 AND 1989 RANGED FROM 4 TO 126 ACCORDING TO A COMPILATION BY NORTHWESTERN NATIONAL LIFE INSURANCE THE BIGGEST INCREASES WERE IN HAWAII 126 IDAHO 122 WYOMING 120 AND ALASKA 100 THE TEENAGE SUICIDE RATE FELL IN 12 STATES WITH VERMONT HAVING THE BIGGEST DECLINE 48 THE RATE IN ONE STATE WISCONSIN REMAINED UNCHANGED NATIONWIDE THE TEEN SUICIDE RATE INCREASED 18 DURING THE 1980S THE COMPANY SAYS THOUGH HAWAII SHOWED THE LARGEST PERCENTAGE INCREASE IT STILL HAD A RELATIVELY LOW RATE IN 1989 29 VS 13 IN 1980 THE RATES ARE BASED ON SUICIDES PER 100000 POPULATION UNDER AGE 20 BUT COMPANY ANALYSTS SAY PRACTICALLY ALL SUICIDES IN THIS AGE RANGE INVOLVE 13 TO 19YEAROLDS ALASKA HAD THE HIGHEST SUICIDE RATE OF ANY STATE WITH 96 DEATHS PER 100000 PEOPLE UNDER AGE 20 IN 1989 WYOMING AND IDAHO HAD RATES OF 67 AND 65 RESPECTIVELY OTHER STATES WITH RATES OF 48 OR HIGHER IN 1989 WERE NEW MEXICO COLORADO SOUTH DAKOTA NEVADA MONTANA ARIZONA AND MINNESOTA NORTHWESTERN NATIONAL LIFE OFFICIALS SAY HEALTHCARE CASES THEY MANAGE INDICATE THE TEENAGE SUICIDE RISE STEMS LARGELY FROM HIGHER LEVELS OF TEEN STRESS DRUG AND ALCOHOL ABUSE AND UNRESOLVED FAMILY CONFLICTS EVEN MANY WOMEN HEALTH SPECIALISTS TAKE EXTREME STEPS TO LOSE WEIGHT REPORTS UNIVERSITY OF FLORIDA RESEARCHER REBECCA BREY HER SURVEY OF ALMOST 300 FEMALE STUDENTS MAJORING IN HEALTH EDUCATION AT VARIOUS COLLEGES FINDS MORE THAN A THIRD HAVING USED FAD DIETS TO TRY TO STAY THIN AND ONE IN 11 SAYING THEY DELIBERATELY VOMIT AT LEAST ONCE A MONTH TO HOLD DOWN WEIGHT CHILDREN AGES EIGHT TO 17 GENERALLY BELIEVE THEIR PARENTS ARE UPTODATE ON KIDS' PREFERENCES IN CLOTHES MOVIE AND TV SHOWS MUSIC AND CARS ACCORDING TO A ROPER ORGANIZATION POLL FOR GOOD HOUSEKEEPING MAGAZINE 9305250157 930525 CORPORATE FOCUS FRANKLIN ELECTRONIC PINS HOPES ON DIGITAL BOOK SYSTEM FIRM SEES NEW DEVICE BOLSTERING SALES BUT STIFF COMPETITION LOOMS BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FRANKLIN ELECTRONIC PUBLISHERS INC IS A DAVID WITH GOLIATHS LURKING JUST AROUND THE CORNER THIS SMALL BUT SCRAPPY COMPANY HAS VENTURED HEADLONG INTO ELECTRONIC BOOK PUBLISHING AND LAID CLAIM TO A PROMISING TERRITORY RELATIVELY INEXPENSIVE PORTABLE BATTERYOPERATED GADGETS TO LOOK UP REFERENCE MATERIAL FRANKLIN HAS RAPIDLY GRADUATED FROM PRODUCING 80 SPELL CHECKERS IN 1986 TO SELLING ELECTRONIC VERSIONS OF ENCYCLOPEDIAS AND THE BIBLE THE DEVICES WHICH USE INTEGRATED CIRCUIT READONLY MEMORY TECHNOLOGY ARE STRICTLY UTILITARIAN QUERIES ARE TAPPED INTO A SMALL KEYBOARD AND ANSWERS APPEAR ON A FEW LINES OF SCREEN STILL LAST YEAR FRANKLIN SHIPPED ABOUT 14 MILLION OF THESE DEVICES MOST PRICED AT UNDER 100 BOTH IN THE US AND ABROAD THEY'VE DONE A LOT TO PROVE THE CONCEPT OF AN ELECTRONIC BOOK SAYS DENISE CARUSO EDITOR OF DIGITAL MEDIA MAGAZINE IN SAN FRANCISCO NOW THE MOUNT HOLLY NJ COMPANY THINKS IT IS ON THE BRINK OF A MUCH WIDER MARKET IN NOVEMBER FRANKLIN BROUGHT OUT THE POCKETSIZED DIGITAL BOOK SYSTEM WHICH HAS THE ADVANTAGE OF FLEXIBILITY OVER THE COMPANY'S SINGLEPURPOSE ELECTRONIC BOOKS THE 46OUNCE DIGITAL BOOK OR DBS CAN READ DIFFERENT DATABASES EMBEDDED IN INTERCHANGEABLE ROM CARDS SMALLER THAN A MATCHBOX SO A USER CAN BUILD A LIBRARY MUCH AS ONE WOULD ASSEMBLE A COLLECTION OF CASSETTES TO PLAY ON A TAPE PLAYER THE DBS WITH SLOTS FOR TWO CARDS IS SOLD WITH TWO CARDS FOR 19995 THE CARDS EACH OF WHICH CAN BE MADE TO STORE AS MUCH TEXT AS 20 BIBLES RANGE IN PRICE FROM 4995 TO 12995 MORTON E DAVID FRANKLIN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER PREDICTS THAT SALES OF THE DBS COULD ACCOUNT FOR 15 OF REVENUE THIS FISCAL YEAR AND ACCELERATE IN THE NEXT THREE YEARS TO BECOME HALF OUR BUSINESS IN THE YEAR ENDED MARCH 31 FRANKLIN'S SALES GREW 22 TO 654 MILLION AND PROFIT JUMPED 128 TO 71 MILLION MR DAVID EXPECTS SALES TO GROW 35 ANNUALLY STARTING NEXT YEAR BUT FOR HOW LONG IS UNCERTAIN COMPANIES WITH A LOT MORE TECHNOLOGY AND CAPITAL MUSCLE ARE PUSHING TO DEVELOP HANDHELD COMPUTERS THAT CAN DELIVER A VAST ARRAY OF INFORMATION ALREADY TITLES ARE BEING PUBLISHED FOR COMPACTDISK ROM DEVICES SUCH AS SONY CORP'S MULTIMEDIA COMPACT DISK PLAYER OTHER COMPANIES LED BY APPLE COMPUTER INC ARE PRESSING TO PRODUCE PERSONAL DIGITAL ASSISTANTS COMPUTERS WITH ORGANIZERS THAT CAN ALSO SEND FAXES AND RETRIEVE ELECTRONIC MAIL WITH MUCH MORE SOPHISTICATED TECHNOLOGY AND VERSATILITY SUCH MACHINES COULD WELL CHALLENGE FRANKLIN'S NICHE IN THE ELECTRONIC INDUSTRY EXPLOSION IN THE COMPETITION FOR TITLES AND CONSUMERS FRANKLIN COULD GET SQUASHED SAYS RICHARD A SHAFFER OF CONSULTING FIRM TECHNOLOGIC PARTNERS IN NEW YORK BUT HE BETS THE COMPANY COULD SPECIALIZE AND SURVIVE FRANKLIN HAS FACED DIRE SITUATIONS BEFORE THE COMPANY STARTED IN 1981 AS A MAKER OF APPLE II CLONES WENT INTO BANKRUPTCYLAW PROCEEDINGS AFTER APPLE SUED IT FOR COPYRIGHT INFRINGEMENT MR DAVID NOW 56 YEARS OLD CAME ON BOARD AS CHAIRMAN AND CHIEF EXECUTIVE IN 1984 AND REDIRECTED THE COMPANY TO MAKING HANDHELD SINGLEPURPOSE REFERENCE DEVICES BASED ON PROPRIETARY DESIGNS FRANKLIN DOESN'T DO THE MANUFACTURING ITSELF INSTEAD FOCUSING ON PREPARING THE ELECTRONIC DATA COMPRESSING IT FOR STORAGE AND DESIGNING RETRIEVAL SYSTEMS ASSEMBLY IS DONE IN ASIA AS FOR FRANKLIN'S LATEST CHALLENGES MR DAVID GIVES ALL THE SIGNS OF SOMEONE WHO HAS NO TROUBLE SLEEPING AT NIGHT HE SEES FRANKLIN PROSPERING IN A STRICTLY DEFINED NICHE INEXPENSIVELY PRICED PORTABLE REFERENCE BOOKS IN DECEMBER THE COMPANY WILL BEGIN SELLING THE DBS WITHOUT CARDS FOR 99 AT THAT PRICE POINT WE'LL DO BATTLE WITH ANYBODY SAYS MR DAVID COMPUTER GIANTS ARE UNLIKELY TO WANT TO TARGET THAT PRICE RANGE THERE'S ALWAYS GOING TO BE A MARKET FOR VERY DISCRETE FOCUSED DEVICES UNDER 100 SAYS BRUCE RYON MULTIMEDIA ANALYST FOR DATAQUEST INC IN SAN JOSE CALIF FRANKLIN HAS THE RIGHT PRODUCT AT THE RIGHT PRICE POINT SONY'S MULTIMEDIA CDROM PLAYER IS CURRENTLY PRICED AT 99995 AND PERSONAL DIGITAL ASSISTANTS ARE EXPECTED TO WEIGH IN AT LEAST FOUR TIMES THE CURRENT DBS PRICE OF 199 WITH CARDS TO MAKE THE MOST OF THE CURRENT OPPORTUNITY FRANKLIN HAS AGGRESSIVELY COLLECTED FIVETO10YEAR LICENSES FOR WELLKNOWN TITLES MOSTLY IN SPECIALIZED FIELDS IN MEDICINE FOR INSTANCE FRANKLIN HAS ELECTRONIC RIGHTS TO THE PHYSICIANS' DESK REFERENCE THE HANDBOOK OF ADVERSE DRUG INTERACTIONS AND THE MERCK MANUAL THE LICENSES GIVE FRANKLIN THE SOLE RIGHT TO PUT THESE BOOKS INTO SILICON CHIPS INCLUDING THE PERSONAL COMPUTER CARDS EXPECTED TO BE USED FOR HANDHELD COMPUTERS BUT UNDER SOME ARRANGEMENTS PUBLISHERS CAN GRANT SEPARATE CDROM LICENSES THE COMPANY CHOSE TO FOCUS NARROWLY ITS FIRST MARKETING PUSH FOR DBS ON MEDICAL PRACTITIONERS TO BUILD A CRITICAL MASS OF TITLES AND USERS QUICKLY IN THE SIX MONTHS SINCE THE DIGITAL BOOK'S INTRODUCTION FRANKLIN SAYS IT HAS SOLD 53000 UNITS WITH 25000 TO DOCTORS THROUGH DIRECT MAIL FRANKLIN ALSO IS TARGETING CUSTOM ELECTRONIC BOOKS FOR CORPORATIONS IT HAS SIMPLIFIED ITS AUTHORING SOFTWARE SO THAT COMPANIES CAN WRITE THEIR OWN ELECTRONIC MANUALS PRICE GUIDES AND INTERACTIVE CATALOGS THAT CAN BE READ ON THE DBS MR DAVID SAYS FRANKLIN IS TESTING THE NEW SOFTWARE WITH THREE COMPANIES MEANWHILE NEW FUNCTIONS ARE BEING DEVELOPED FOR THE DBS MR DAVID SAID IT WILL ROLL OUT A 129 ORGANIZER CARD BY JUNE AND A BEEPER CARD BY EARLY 1994 THE ORGANIZER CARD MAY BE THE PRODUCT THAT MAKES THE DBS A DAYTODAY DEVICE SAYS ELLIOT PRINCE AN ANALYST WITH OPPENHEIMER & CO IN AUGUST FRANKLIN IS SCHEDULED TO SHIP THE DBS 2 WHICH WILL HAVE A SERIAL PORT SO IT CAN BE HOOKED UP TO A MODEM PRINTER OR COMPUTER IT ALSO WILL HAVE AUDIO CAPABILITY DOWN THE ROAD FRANKLIN HAS MORE AUDACIOUS PLANS MR DAVID SAYS THE COMPANY INTENDS TO LICENSE ITS AUTHORING SOFTWARE SYSTEM TO PUBLISHERS MAKING MONEY BOTH ON ROYALTIES AND HARDWARE SALES THAT'S PART OF FRANKLIN'S PUSH TO CREATE ELECTRONIC BOOKS THAT PEOPLE WILL WANT TO READ SAYS MR SHAFFER OF TECHNOLOGIC PARTNERS IN SOME CASES FRANKLIN CAN'T GET THE RIGHT TO A PERFECTLY GOOD ELECTRONIC BOOK IT CAN GET SOME REVENUE BY LICENSING THE SOFTWARE HE SAYS CAN THE COMPANY PULL IT OFF BARTON FABER IS SKEPTICAL MR FABER GROUP PRESIDENT OF RR DONNELLEY & SONS CO'S INFORMATION SERVICES GROUP SAYS FRANKLIN MAY HAVE AN OPPORTUNITY IN THE SHORT RUN BUT ITS TECHNOLOGY DIFFERENT FROM THE CDROM AND OTHER PORTABLE COMPUTERS EVENTUALLY WILL LIMIT ITS GROWTH FOR PUBLISHERS HE SAYS THE KEY ISSUE IS DEVELOPING FOR THE LARGEST INSTALLED BASE AND IT WON'T BE FRANKLIN'S BUT MR FABER IS FAR FROM WRITING THE COMPANY OFF ONE COMPETITIVE ADVANTAGE IS HUSTLE SEEING THE TRENDS AND CHANGING STRATEGY TO FIT THE TRENDS HE SAYS SO FAR FRANKLIN'S DONE A GOOD JOB OF IT 9305250156 930525 NEW YORK CITY'S MUNICIPAL HOSPITALS TO OFFER 550 MILLION BOND ISSUE TODAY BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITY'S MUNICIPAL HOSPITALS SEEKING SOME INDEPENDENCE FROM THE CITY'S OVERALL FINANCIAL NEEDS ARE COMING TO MARKET TODAY WITH A 550 MILLION TAXEXEMPT BOND ISSUE THE OFFERING BY NEW YORK CITY HEALTH & HOSPITALS CORP MARKS A MAJOR DEPARTURE FROM THE WAY THAT THE 11 CITYOWNED HOSPITALS USUALLY FINANCE THEMSELVES TYPICALLY THE HOSPITALS RELY FOR CASH ON MONEY THAT NEW YORK CITY RAISES FOR GENERAL PURPOSES BUT AS PART OF A FINANCIAL REORGANIZATION BEGUN IN 1991 THE HOSPITALS ARE AIMING TO BECOME A STANDALONE ENTITY IN THE CREDIT MARKETS THIS SHOULD BE THE FIRST OF MANY BOND OFFERINGS BY THE HOSPITAL CORPORATION SAID PATRICE MITCHELL THE CORPORATION'S VICE PRESIDENT FOR FINANCE WE'D LIKE TO SEE A COUPLE DEALS A YEAR SHE SAID THE HOSPITAL CORPORATION MAY SEEK TO FINANCE ITS 3 BILLION 10YEAR CAPITAL SPENDING PROGRAM IN THE BOND MARKETS BY CHOOSING TO MARKET ITS OWN BONDS THE HOSPITAL CORPORATION IS PROVIDING INVESTORS WITH AN UNUSUALLY DETAILED GLIMPSE OF ITS FINANCES OFFERING DOCUMENTS SHOW A VAST REVENUE STREAM FOR THE CITY HOSPITALS BUT ALSO INDICATE SOME DIFFICULTIES IN COLLECTING BILLS AND KEEPING EXPENSES UNDER CONTROL FOR THE YEAR ENDED JUNE 30 1992 THE HOSPITAL CORPORATION HAD A 177 MILLION LOSS FROM OPERATIONS ON REVENUE OF 34 BILLION THAT REVENUE THE CORPORATION SAID MAKES IT THE SECONDLARGEST GOVERNMENTOWNED HEALTHCARE PROVIDER NATIONWIDE AFTER THE VETERANS ADMINISTRATION AMONG THE CITY'S BETTERKNOWN FACILITIES ARE BELLEVUE HOSPITAL KINGS COUNTY HOSPITAL AND HARLEM HOSPITAL BECAUSE IT OPERATES MUNICIPAL HOSPITALS THE CORPORATION TREATS MANY OF THE POOREST PATIENTS IN NEW YORK AND HAS TROUBLE GETTING PAID FOR FISCAL 1992 THE HOSPITAL SAID ITS PROVISION FOR BAD DEBTS TOTALED 335 MILLION EQUAL TO ABOUT 10 OF REVENUE MOST PRIVATE HOSPITALS HAVE BADDEBT PROVISIONS OF 5 OR LESS THE HOSPITAL CORPORATION ALSO SAID THAT 52 OF ITS NET PATIENT SERVICE REVENUE CAME FROM PATIENTS COVERED BY MEDICAID THE FEDERALSTATE PROGRAM FOR POOR PEOPLE'S HEALTH CARE BLUE CROSS AND PRIVATE INSURERS ACCOUNTED FOR JUST 9 OF PATIENTS IN A POSSIBLE SIGN OF COST OVERRUNS THE HOSPITAL CORPORATION SAID THAT AS OF MARCH 31 IT WAS FORECASTING AN OVERSPENDING IN ITS ANNUAL EXPENSE BUDGET OF APPROXIMATELY 27 MILLION THE CORPORATION SAID IT PLANS TO CLOSE THE GAP BY EXPENSE CONTROLS OR EXTRA REVENUE IT ADDED THAT SUCH VARIANCES FROM BUDGET AREN'T UNCOMMON IN RECENT YEARS THE HOSPITAL CORPORATION HAS CONSISTENTLY OPERATED AT A LOSS BEFORE TAKING INTO ACCOUNT APPROPRIATIONS FROM NEW YORK CITY THE CITY IS OBLIGATED THOUGH TO APPROPRIATE MONEY TO THE HOSPITAL CORPORATION SO THAT IT CAN OPERATE AT A BREAKEVEN LEVEL EACH YAR THE HOSPITAL CORPORATION SAID IT PLANS TO USE MOST OF THE BOND PROCEEDS TO PAY FOR UPGRADES TO ITS FACILITIES THE CORPORATION ALSO PROJECTED THAT THROUGH THE YEAR 2000 IT WILL COLLECT ABOUT 300 MILLION A YEAR IN APPROPRIATIONS FROM THE CITY IT SAID IT EXPECTS REVENUE TO GROW A TOTAL OF ABOUT 20 OVER THE NEXT EIGHT YEARS BASED ON THAT OUTLOOK THE HOSPITAL CORPORATION IS CARRYING A TRIPLEB CREDIT RATING FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THAT QUALIFIES AS INVESTMENT GRADE BUT IS SLIGHTLY BELOW NEW YORK CITY'S GENERAL CREDIT RATING OF SINGLEAMINUS FROM S&P AND BAA1 FROM MOODY'S EVEN THOUGH THE HOSPITAL CORPORATION CARRIES A LOWER CREDIT RATING THAN NEW YORK CITY MS MITCHELL SAID THE HOSPITAL CORPORATION'S OVERALL FINANCING COSTS MAY BE COMPETITIVE WITH THE RATES THAT THE CITY ITSELF COULD GET ON A COMPARABLE OFFERING THAT'S BECAUSE AMBAC INC A MAJOR BOND INSURER HAS AGREED TO INSURE AS MUCH AS 200 MILLION OF THE OFFERING THOSE BONDS WILL CARRY A TRIPLEA CREDIT RATING AND WILL BE PRICED AT LOWER INTEREST RATES BOND INSURERS WERE TAPPED OUT WITH REGARD TO THE AMOUNT OF BOND INSURANCE THEY WERE WILLING TO PROVIDE TO NEW YORK CITY ISSUES MS MITCHELL NOTED THIS GIVES THEM A NEW NAME TO INSURE IN ADDITION UNDERWRITERS SAID SOME INVESTORS ARE EAGER TO SEE NEW YORK CITY DIVIDE UP ITS BORROWING NEEDS AMONG SEVERAL ENTITIES IN PARTICULAR MUTUAL FUNDS OFTEN DON'T WANT TO PLACE MORE THAN 5 OF THEIR ASSETS IN ANY BORROWER'S SECURITIES THAT THRESHOLD HAS BECOME A STUMBLING POINT FOR TAXEXEMPT MUTUAL FUNDS THAT SPECIALIZE IN NEW YORK STATE DEBT THE HOSPITAL CORPORATION'S OFFERING CONSISTS OF SERIAL BONDS WITH MATURITIES RANGING FROM 1994 TO 2023 UNDERWRITERS ARE LED BY DILLON READ & CO 9305250155 930525 WHO'S NEWS ROBERT PIRIE TO STEP DOWN AT ROTHSCHILD BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTMENT BANKER ROBERT S PIRIE WHO REPRESENTED SEVERAL EUROPEAN ACQUIRERS OF US CORPORATIONS DURING THE 1980S MERGER MANIA RESIGNED AS COCHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ROTHSCHILD INC MR PIRIE 59 YEARS OLD SAID HE PLANS TO STEP DOWN JUNE 30 A FOURMEMBER OFFICE OF THE CHAIRMAN WILL THEN MANAGE THE FIRM BUT MR PIRIE'S MERGER ADVISORY DUTIES WILL BE ASSUMED BY YVES ANDREISTEL 57 WHO JOINED ROTHSCHILD AT YEAR END FROM WASSERSTEIN PERELLA & CO AN ALUMNUS OF THE TAKEOVER LAW FIRM OF SKADDEN ARPS SLATE MEAGHER & FLOM MR PIRIE HAD BEEN CHIEF EXECUTIVE SINCE 1982 AT THE ROTHSCHILD OFFICE HERE AN AFFILIATE OF NM ROTHSCHILD & SONS IN LONDON WHICH CONSISTENTLY RANKS AMONG THE TOP HALF DOZEN BRITISH MERGER ADVISERS DURING THE 1980S MR PIRIE REPRESENTED HANSON PLC AND SIR JAMES GOLDSMITH IN SEVERAL HOSTILE TAKEOVER BATTLES BUT THE CLIENT HE CAME TO BE MOST CLOSELY IDENTIFIED WITH WAS ROBERT MAXWELL THE LATE BRITISH FINANCIER MR MAXWELL'S DROWNING DEATH IN 1991 CLOSELY PRECEDED THE UNRAVELING OF HIS HEAVILY INDEBTED MEDIA EMPIRE AND SOME INVESTMENT BANKERS SAY THE ASSOCIATION HURT MR PIRIE BUT MR PIRIE WAS ALSO HURT BY THE RETREAT OF EUROPEAN ACQUIRERS IN THE 1990S IN THE RECENT PAST ROTHSCHILD'S US BUSINESS HAS BEEN DOMINATED BY WILBUR L ROSS JR A WORKOUT SPECIALIST WHO ADVISES HOLDERS OF JUNK BONDS IN NEGOTIATING NEW TERMS WITH COMPANIES THAT CAN'T PAY MR ROSS WILL ALSO SERVE IN THE FIRM'S NEW OFFICE OF THE CHAIRMAN AS WILL MR ANDREISTEL GERALD GOLDSMITH THE FIRM'S PRESIDENT AND CHIEF OPERATING OFFICER AND DAVID DE ROTHSCHILD HEAD OF THE FRENCH ROTHSCHILD BANKING FAMILY WITH A SOUND MANAGEMENT TEAM IN PLACE NOW SEEMED AN APPROPRIATE TIME TO DEPART MR PIRIE SAID IN A STATEMENT 9305250154 930525 SURVIVORS WILL GLOW IN HAPPINESS KNOWING THE WORLD IS A SAFER PLACE BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL FEAR NOT THE US GOVERNMENT WILL PROTECT THE OZONE LAYER IN THE EVENT OF A NUCLEAR HOLOCAUST TO DO ITS BIT TO SAVE THE PLANET THE US AIR FORCE PLANS TO RETROFIT ITS NUCLEAR MISSILES WITH COOLING SYSTEMS THAT DON'T USE CHLOROFLUOROCARBONS THOSE CFCS ARE BLAMED FOR DEPLETING THE ATMOSPHERE'S OZONE LAYER WHICH PROTECTS PEOPLE FROM SKIN CANCER GLAUCOMA AND OTHER DISEASES BY SCREENING OUT HARMFUL RAYS FROM THE SUN NEVER MIND THAT EACH INTERCONTINENTAL BALLISTIC MISSILE PACKS THREE TO 10 BOMBS THAT CAN WIPE OUT ENTIRE CITIES MAKING SKIN CANCER AND GLAUCOMA MOOT CONCERNS THE PLANNED RETROFIT IS PART OF POLLUTION PREVENTION SAYS AN AIR FORCE SPOKESWOMAN WE HAVE A PROGRAM TO ELIMINATE OZONEDEPLETING CHEMICALS THAT'S SMALL COMFORT TO ANTINUCLEAR GROUPS IT'S AWFULLY GOOD OF THE AIR FORCE TO PROTECT THE OZONE BUT THEY'VE GOT MORE PRESSING ENVIRONMENTAL PROBLEMS THAN THAT SAYS BURT GLASS DISARMAMENT CAMPAIGN COORDINATOR FOR PEACE ACTION EDUCATION FUND BESIDES NUCLEAR WAR MR GLASS IS CONCERNED ABOUT MILITARY BASES ALL OVER THE COUNTRY THAT ARE SUPERFUND SITES THAT ARE BEING IGNORED THE RETROFIT FIRST REPORTED IN AIR CONDITIONING HEATING & REFRIGERATION NEWS UNDER THE HEADLINE MY TAXES PAID FOR THIS ISN'T EXACTLY BY CHOICE THE AIR FORCE IS REACTING TO AN ENVIRONMENTAL PROTECTION AGENCY PROPOSAL TO BAN THE PRODUCTION AND IMPORT OF CFCS AS OF JAN 1 1996 THUS FORCING USERS TO EITHER RECYCLE OR USE OTHER REFRIGERANTS THE IDEA IS TO REDUCE THE USE OF CFCS IN EVERYDAY PRODUCTS SUCH AS REFRIGERATORS AND AIR CONDITIONERS BUT DOES THAT MAKES SENSE FOR MISSILES THAT'S RIDICULOUS ASSERTS AEROSPACE ENGINEER ROBERT J CAVELLERI PRESIDENT OF APPLIED TECHNOLOGY ASSOCIATES INC ORLANDO FLA THE EPA IS BEING VERY DICTATORIAL CONGRESS HAS GOTTEN OUT ITS BIG STICK HIS COMPANY IS NONETHELESS BENEFITTING FROM THE SWITCH BY DEVELOPING CHILLERS TO COOL THE ONBOARD COMPUTERS THAT AIM THE MISSILES THE EPA WON'T BACK DOWN I CAN SEE HOW IT MAY SEEM A LITTLE IRONIC TO PHASE OUT USE OF CFCS IN DEADLY MISSILES SAYS A SPOKESMAN BUT HE ADDS THE DEPLETION OF THE OZONE PRESENTS A REAL DANGER TO THE WHOLE WORLD WE'RE NOT GOING TO MAKE EXCEPTIONS TO THE RULES FOR SOMETHING LIKE THIS 9305250153 930525 BIG BOARD TO EXTEND AFTERHOURS TRADES FOR SIX MONTHS DESPITE A MIXED RECORD BY ANITA RAGHAVAN AND WILLIAM POWER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE WILL EXTEND ITS AFTERHOURS TRADING SESSIONS FOR AT LEAST SIX MONTHS EVEN THOUGH THE PILOT PROGRAM HAS A MIXED RECORD SINCE THE BIG BOARD INTRODUCED THE TWO EXTENDED SESSIONS IN JUNE 1991 AVERAGE DAILY TRADING VOLUME IN THE FIRST SESSION FOR INDIVIDUAL STOCKS HAS TOTALED 109200 SHARES SO FAR THIS YEAR DOWN ALMOST 22 FROM THE FIRST YEAR LAST YEAR VOLUME IN THIS SEGMENT WHICH RUNS FROM 415 PM TO 5 PM AMOUNTED TO A PUNY 66900 SHARES BUT VOLUME IN THE SECOND SESSION WHICH IS DEDICATED TO PROGRAM TRADING HAS BEEN FAR MORE ROBUST SO FAR THIS YEAR 4356880 SHARES REPRESENTING 8713760 SHARES BOUGHT AND SOLD HAVE TRADED DAILY IN THE SESSION UP FROM THE 1150788 SHARES CHANGING HANDS EACH DAY IN THE FIRST YEAR THE BIGGEST SINGLE SESSION WAS ON APRIL 5 WHEN 57 MILLION SHARES WERE TRADED AFTER THE MARKET CLOSED THE BIG BOARD WILL EVALUATE THE AFTERHOURS SESSIONS AGAIN IN JANUARY POSSIBLY DECIDING AT THAT TIME TO PUT THEM IN PLACE PERMANENTLY JAMES COCHRANE A BIG BOARD SENIOR VICE PRESIDENT SAYS CROSSING SESSION II THE ONE DEVOTED TO PROGRAMS HAS ATTRACTED MILLIONS OF SHARES OF AFTERHOURS PROGRAM TRADING THAT US BROKERAGE HOUSES HAD BEEN DOING IN LONDON DESPITE CONTROVERSY OVER THE MARKETJARRING IMPACT OF PROGRAM TRADING THE BIG BOARD INTRODUCED CROSSING SESSION II TO GET BACK SUCH PROGRAM TRADING THE BIG BOARD'S AFTERHOURS PROGRAM TRADING SESSION HAS BEEN A MARKET SUCCESS SAYS MR COCHRANE CROSSING SESSION II HAS REPATRIATED A SUBSTANTIAL AMOUNT OF ACTIVITY THAT OCCURRED OVERSEAS WHICH WE THINK IS IMPORTANT FROM A REGULATORY POINT OF VIEW BUT INSTITUTIONAL INVESTORS SAYS CROSSING SESSION I AMOUNTS TO A NONEVENT THE AFTERHOURS SESSION FOR TRADING INDIVIDUAL STOCKS IS NOT A FACTOR IN THE MARKETPLACE SAYS THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER THOUGH IT'S BORN OF GOOD INTENTIONS IT DOESN'T HAVE MUCH EFFECT ON THE INSTITUTIONAL OR RETAIL BUSINESS AT MOST PLACES JEFFREY SHAMES PRESIDENT AND CHIEF EQUITY OFFICER AT MASSACHUSETTS FINANCIAL SERVICES THE BOSTONBASED MUTUAL FUND AGREES WE'RE NOT A PLAYER IN THE AFTERHOURS SESSION HE SAYS THERE'S NOT MUCH VOLUME AND THERE'S NO PRICE SENSITIVITY ONE OF THE PROBLEMS INSTITUTIONAL INVESTORS LIKE MASSACHUSETTS FINANCIAL HAVE WITH THE BIG BOARD'S EXTENDED TRADING SESSION IS THAT TRADES EXECUTED AFTERHOURS ARE BASED ON STOCK PRICES AT THE 4 PM CLOSE WHAT'S MORE THE AFTERHOURS TRADING SESSION DOESN'T OFFER TWO KEY ATTRACTIONS PRIVACY AND LOW TRADING COSTS PROVIDED BY INSTINET AND PRIVATE MARKETS OPERATED BY BROKERAGE FIRMS LIKE JEFFERIES GROUP THE SECURITIES AND EXCHANGE COMMISSION APPROVED AFTERHOURS TRADING IN JUNE 1991 AS PART OF A TWOYEAR PILOT PROGRAM THAT ENDED YESTERDAY 9305250152 930525 USE OLYMPICS BID TO PRESSURE CHINA ON HUMAN RIGHTS BY ALBERT R HUNT RUNNING FOR PRESIDENT BILL CLINTON REPEATEDLY STRESSED THE PRIMACY OF GLOBAL ECONOMICS AND THE NEED TO EMPHASIZE HUMAN RIGHTS IN INTERNATIONAL RELATIONS NOW THESE TWO THEMES ARE IN A HEADON CLASH AS PRESIDENT CLINTON WRESTLES WITH WHETHER TO CONTINUE CHINA'S CURRENT TRADING STATUS THE CHINESE HAVE SO FAR RETAINED THEIR MOSTFAVOREDNATION OR MFN STATUS ONLY BECAUSE PRESIDENT BUSH IN A STANCE DENOUNCED BY CANDIDATE CLINTON OVERRODE CONGRESSIONAL INITIATIVES TO LINK THE TARIFF TREATMENT OF CHINA WITH ITS HUMANRIGHTS RECORD FOR MR CLINTON WHO FACES A JUNE 3 DEADLINE FOR DECISION THE CHINA SITUATION PRESENTS A CRITICAL TEST OF HOW HE RECONCILES HIS CONFLICTING GOALS WITH ANNUAL GROWTH RATES OF ABOUT 13 CHINA ACCORDING TO A NEW INTERNATIONAL MONETARY FUND REPORT IS NOW ESTIMATED TO BE THE WORLD'S THIRDLARGEST ECONOMY AND IT IS WELL ON ITS WAY TO BECOMING THE MOST APPEALING MARKET YET IF THE ISSUE OF HUMAN RIGHTS MATTERS AND IT SURELY GOES TO THE HEART OF WHAT SORT OF NATION WE ARE CHINA'S ABOMINABLE RECORD CERTAINLY ARGUES AGAINST THE US ADOPTING A BUSINESSASUSUAL ATTITUDE THERE IS A WAY OUT OF THIS DILEMMA FOR MR CLINTON HE SHOULD EXTEND CHINA'S MFN STATUS WHICH DESPITE THE NAME IS THE STATUS ACCORDED TO MOST OF OUR TRADING PARTNERS WHILE ATTACHING MUTUALLY ACCEPTABLE HUMANRIGHTS CONDITIONS AT THE SAME TIME THOUGH HE SHOULD FORCEFULLY OPPOSE CHINA'S BID TO GET THE 2000 OLYMPICS UNLESS AND UNTIL ITS HUMANRIGHTS RECORD IMPROVES DRAMATICALLY THE INTERNATIONAL OLYMPIC COMMITTEE WILL DECIDE THE LOCATION FOR THE 2000 GAMES IN SEPTEMBER AND SYDNEY AUSTRALIA AND BEIJING ARE THE FRONTRUNNERS DENYING CHINA THE PRIVILEGE OF HOSTING THE GAMES WOULD AVOID IMPEDING ECONOMIC LIBERALIZATION IN CHINA AND THUS WOULDN'T HURT CHINESE CITIZENS BUT CHINA'S RULERS THE BUTCHERS OF BEIJING WOULD BE SENT A CLEAR MESSAGE THAT THEIR HUMANRIGHTS RECORD AND PEDDLING OF ARMS TO WOULDBE WORLD TROUBLEMAKERS ARE UNACCEPTABLE DEMOCRATIC SEN BILL BRADLEY OF NEW JERSEY WHO'S ON THE VERGE OF REVISING HIS EARLIER OPPOSITION TO MFN OBSERVES THAT CHINA DESPERATELY WANTS THE OLYMPICS IN HOPES OF ESCAPING THE WORLDWIDE STIGMA OF THE 1989 TIANANMEN SQUARE MASSACRE THUS THE US OUGHT TO IMMEDIATELY START ORGANIZING TO DENY THIS UNLESS THE HUMANRIGHTS POLICY IS CHANGED SAYS THE SENATOR A MEMBER OF THE GOLDMEDALWINNING 1964 US OLYMPIC BASKETBALL TEAM CHINA'S HUMANRIGHTS RECORD CERTAINLY ISN'T A REASON TO RENEW ITS MFN STATUS PRODEMOCRACY DISSENT STILL IS BRUTALLY STIFLED ASIA WATCH A HUMANRIGHTS AGENCY SAYS THAT AT LEAST 40 PEOPLE WERE SECRETLY ARRESTED LAST YEAR PURELY FOR HAVING HAD THE AUDACITY TO CHALLENGE IN AN ENTIRELY PEACEFUL MANNER THE COMMUNIST PARTY'S TIMEHONORED MONOPOLIES ON POLITICAL POWER AND TRUTH THERE ARE RELIABLE REPORTS THAT CHINA HAS BROKEN ITS WORD AND IS STILL USING PRISON LABOR TO MAKE GOODS IT SHIPS TO THE US AND REPRESSION OF THE PEACEFUL PEOPLE OF TIBET CONTINUES NOR SHOULD MFN BE GIVEN BECAUSE IT HELPS AMERICAN COMPANIES AND CONSUMERS EVEN THOUGH IT DOES WITH ALMOST 26 BILLION OF CHINESE EXPORTS COMING TO THE US ANNUALLY IT'S ESTIMATED THAT ENDING CHINA'S FAVORABLE TARIFF TREATMENT COULD COST US CONSUMERS BILLIONS OF DOLLARS THE LIKELY CHINESE RETALIATION ALSO COULD MEAN THOUSANDS OF LOST JOBS AND JEOPARDIZE THE ROUGHLY 6 BILLION OF INVESTMENTS US COMPANIES NOW HAVE IN CHINA THIS WOULD BE A SMALL PRICE TO PAY IF IT WOULD ALTER CHINA'S REPRESSION AND FURTHER HASTEN THE FREEDOM OF ITS CITIZENS UNFORTUNATELY THE MORE LIKELY EFFECT WOULD BE TO FRUSTRATE THE VERY ECONOMIC POLICIES THAT ARE LIBERALIZING CHINA'S POLITICAL CLIMATE EVEN IF TOO SLOWLY TRADE IS PRODUCING A MORE OPEN MARKETORIENTED SOCIETY WHICH IS LEADING TO A SUBSTANTIAL DECENTRALIZATION OF THE ECONOMY AND A GROWING MIDDLE CLASS SAYS DWIGHT PERKINS AN ECONOMIST AND DIRECTOR OF HARVARD'S INSTITUTE FOR INTERNATIONAL DEVELOPMENT THIS PRODUCES A HUGE FLOW OF INFORMATION THAT THE GOVERNMENT CANNOT CONTROL IT MAKES NO SENSE TO TAKE AWAY SOMETHING THAT ACTUALLY IS IMPROVING HUMAN RIGHTS FOR THE SAME REASON CHINA'S EFFORT TO GET INTO THE GENERAL AGREEMENT ON TARIFFS AND TRADE OUGHT TO BE ENCOURAGED BY CONTRAST OTHERS ALREADY REALIZE THAT A MOVE AGAINST CHINA'S OLYMPIC BID WHILE IT WOULD HAVE LITTLE IMPACT ON THE AVERAGE CHINESE COULD BE A DEVASTATING BLOW TO THE GOVERNMENT THE VATICAN FOR INSTANCE IS PRIVATELY WARNING THAT UNLESS CATHOLIC PRIESTS IN CHINA ARE FREED IT WILL LOBBY TO DENY BEIJING THE OLYMPICS THE PRESENCE OF THE OLYMPICS SENDS A MESSAGE OBSERVES SEN BRADLEY IN JAPAN IN 1964 IT WAS WE'RE BACK' IN GERMANY IN 1972 IT WAS WE'RE THE NEW GERMANY' THIS WOULD BE CHINA'S WAY TO GAIN INTERNATIONAL RESPECT BUT A USLED EFFORT TO BLOCK HOLDING THE GAMES IN BEIJING GIVES US A CHANCE TO SAY THAT RESPECT HAS TO BE EARNED OF COURSE BILL CLINTON CAN'T BY HIMSELF DENY BEIJING THE OLYMPICS THE INTERNATIONAL OLYMPIC COMMITTEE HAS A LONG HISTORY OF MORAL INSENSITIVITY HITLER'S GERMANY HOSTED THE 1936 OLYMPICS AND THE SOVIETS GOT THE 1980 GAMES BUT THE US HAS CONSIDERABLE LEVERAGE IF BEIJING DOESN'T GET THE 2000 OLYMPICS CHINA IMMEDIATELY BECOMES THE FAVORITE FOR FOUR YEARS LATER AND COULD BE PUT ON EARLY NOTICE AND IF THE IOC REVERTS TO FORM AND IGNORES HUMAN RIGHTS IN SEPTEMBER THE PRESIDENT SHOULD IN NO UNCERTAIN TERMS LET THE CHINESE KNOW THAT US PARTICIPATION WILL DEPEND ON THE NATURE OF THE HOST COUNTRY THERE ARE THOSE WHO INSIST THE GAMES SHOULDN'T BE POLITICIZED BUT TRYING TO KEEP POLITICS OUT OF THE OLYMPICS NOTES SEN BRADLEY THE ONLY OLYMPIC GOLD MEDAL WINNER IN CONGRESS IS LIKE TRYING TO KEEP OXYGEN OUT OF THE AIR WE BREATHE MR HUNT IS THE JOURNAL'S WASHINGTON BUREAU CHIEF 9305250151 930525 AIRLINE INDUSTRY'S RECOVERY IS CALLED CRITICAL' FOR OVERALL ECONOMY BY CLINTON BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON CALLED THE RECOVERY OF THE AIRLINE INDUSTRY CRITICAL TO BOOSTING THE OVERALL ECONOMY AND SHRINKING THE BUDGET DEFICIT THERE'S NOT A STATE NOT A COMMUNITY IN THIS COUNTRY THAT WON'T BE BETTER OFF IF WE HAVE A STRONG AND VIBRANT AEROSPACE ECONOMY MR CLINTON TOLD A PANEL CHARGED WITH DRAFTING A PLAN TO REJUVENATE THE INDUSTRY THE 15MEMBER PANEL THE NATIONAL COMMISSION TO ENSURE A STRONG COMPETITIVE AIRLINE INDUSTRY MET YESTERDAY FOR THE FIRST TIME APPOINTED BY THE WHITE HOUSE AND CONGRESS PANEL MEMBERS INCLUDE REPRESENTATIVES OF LABOR AND THE AIRLINE INDUSTRY AS WELL AS POLITICIANS AND BANKERS THE MEMBERS HAVE BEEN ASKED TO PUT ASIDE THEIR PARTISAN AND CORPORATE DIFFERENCES IN DRAFTING THEIR RECOMMENDATIONS TO HELP AN INDUSTRY THAT HAS LOST TENS OF THOUSANDS OF JOBS AND 10 BILLION SINCE 1989 THE INDUSTRY ITSELF IS DEEPLY DIVIDED OVER WHAT ACTION TO TAKE THE PANEL WHICH WILL SUBMIT ITS REPORT WITHIN 90 DAYS WILL STUDY A VARIETY OF ISSUES INCLUDING PRICING PRACTICES EXCESS CAPACITY TAX AND REGULATORY RELIEF FOREIGN INVESTMENT IN US AIRLINES AND BILATERAL AVIATION AGREEMENTS WITH BRITAIN AND OTHER TRADING PARTNERS BUT THE COMMITTEE'S CHAIRMAN FORMER VIRGINIA GOV GERALD BALILES URGED THE MEMBERS TO FOCUS FIRST ON THE QUESTIONS OF WHETHER THE INDUSTRY'S PROBLEMS ARE STRUCTURAL OR TIED TO ECONOMIC CYCLES PANEL MEMBER FELIX ROHATYN MANAGING PARTNER OF LAZARD FRERES & CO AND CHAIRMAN OF THE COMMISSION THAT SAVED NEW YORK CITY FROM BANKRUPTCY IN THE 1970S SAID THE PANEL SHOULD ALSO STUDY THE FINANCIAL STRENGTH OF THE AIRLINE INDUSTRY MR ROHATYN SAID THE INDUSTRY WAS OVEREXTENDED AND HE CRITICIZED A TRANSPORTATION DEPARTMENT BRIEFING ON THE INDUSTRY'S DEBT AS BEING BADLY UNDERSTATED HERBERT KELLEHER SOUTHWEST AIRLINES PRESIDENT AND A PANEL MEMBER AGREED THAT THE INDUSTRY WAS WEAK FINANCIALLY AND HE SAID THE AIRLINES ARE EXPECTED TO SPEND ROUGHLY 200 BILLION IN THE NEXT DECADE TO REFIT THEIR FLEETS TO MEET FEDERAL NOISE STANDARDS AND TO IMPROVE AIRPORTS IT ONLY TAKES RUDIMENTARY ECONOMICS TO SEE THE INDUSTRY NEEDS HELP HE SAID 9305250150 930525 FLEXIBLE OPTIONS FLEX FINANCIAL MUSCLES BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO FLEXIBLE OPTIONS CONTRACTS THE NEW FINANCIAL PRODUCTS THAT LET INSTITUTIONAL INVESTORS DESIGN THEIR OWN HEDGES AGAINST STOCKPRICE SWINGS ARE OFF TO A FLYING START IN ALMOST THREE MONTHS OF TRADING THE CHICAGO BOARD OPTIONS EXCHANGE HAS POSTED ABOUT 38 BILLION OF FLEXIBLE OPTIONS TRADES AND WHILE THE CBOE'S FLEDGLING CONTRACTS ARE STILL DWARFED BY THE 50 BILLIONAYEAR OVERTHECOUNTER OR OFFEXCHANGE MARKET IN CUSTOMIZED OPTIONS THE PRODUCTS ARE QUICKLY GAINING GROUND AMONG A BROAD GROUP OF OPTIONS DEALERS AND INSTITUTIONAL INVESTORS THEY'RE FITTING THE NEEDS OF A LOT OF PEOPLE IN A LOT OF DIFFERENT WAYS SAYS VINCENT BAILEY PORTFOLIO MANAGER FOR BEA ASSOCIATES A NEW YORK FIRM WITH 16 BILLION UNDER MANAGEMENT AND I THINK THEY WILL CONTINUE TO GROW BECAUSE THEY HAVE PLENTY OF APPLICATIONS THAT PEOPLE HAVEN'T DISCOVERED YET THE NEW CBOE CONTRACTS CALLED FLEX OPTIONS FOR SHORT TRACK THE VALUES OF STOCKS THEY ENTITLE INVESTORS TO BUY OR SELL BASKETS OF STOCKS FOR A PREDETERMINED PRICE ON SOME DATE IN THE FUTURE UNLIKE CONVENTIONAL STOCKINDEX OPTIONS WHICH HAVE FIXED STRIKE PRICES AND EXPIRATION DATES THE PRICES AND DATES OF FLEX CONTRACTS CAN BE CUSTOMIZED FOR THE INDIVIDUAL NEEDS OF INVESTORS PREVIOUSLY ONLY THE BIG WALL STREET FIRMS THAT RUN THE OTC MARKET COULD CONCOCT CUSTOMMADE OPTIONS AT THE MOMENT FLEX OPTIONS ARE AVAILABLE ON ONLY THE STANDARD & POOR'S INDEXES OF 100 AND 500 LEADING STOCKS BECAUSE OF THE QUICK GROWTH OF THE INSTRUMENTS BOTH THE CBOE AND ITS COMPETITOR THE AMERICAN STOCK EXCHANGE PLAN TO RUSH OUT NEW VERSIONS THE CBOE IS SEEKING SECURITIES AND EXCHANGE COMMISSION APPROVAL TO TRADE FLEX OPTIONS ON ITS RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS AMEX PLANS TO TRADE FLEX OPTIONS ON ITS INDEXES OF JAPANESE AND MIDSIZE US STOCKS BECAUSE THEY HAVE A MINIMUM FACE VALUE OF 10 MILLION FLEX OPTIONS ARE AIMED AT BIG INSTITUTIONAL INVESTORS BUT MUTUAL FUNDS AND PENSION FUNDS WHICH MANAGE MONEY ON BEHALF OF INDIVIDUALS CAN USE THE OPTIONS TO HEDGE STOCK PORTFOLIOS OR MAKE LONGTERM STOCKMARKET WAGERS CALL FLEX OPTIONS ENTITLE THEIR HOLDERS TO BUY A BASKET OF STOCKS WHILE PUT FLEX OPTIONS ALLOW HOLDERS TO SELL A BASKET OF STOCKS THE MOST PREVALENT USE WE'VE SEEN IS WRITING 'CALLS' AGAINST PORTFOLIOS SAYS ART MARGULIS PARTNER AND HEAD TRADER AT HULL TRADING A CHICAGO FIRM THAT ACTS AS A MARKET MAKER IN THE CBOE'S FLEX OPTIONS TRADING PIT IN THIS STRATEGY A MONEY MANAGER OR OTHER BIG INVESTOR SELLS AN OPTION AT THE CBOE STIPULATING WHEN THE OPTION WILL EXPIRE AND WHAT THE STRIKE PRICE WILL BE THE STRATEGY HAS TWO BENEFITS THE MANAGER COLLECTS A FEE FROM THE BUYER OF THE OPTION AND THE OPTION SOLD SERVES TO OFFSET RISK THAT A MARKET DOWNDRAFT COULD REDUCE THE VALUE OF THE MANAGER'S EXISTING STOCK PORTFOLIO MANY OF THE BIG FIRMS THAT DOMINATE THE OTC MARKET IN CUSTOMIZED OPTIONS WEREN'T HAPPY WHEN THE CBOE LAUNCHED ITS FLEX CONTRACTS WHICH ARE INTENDED TO WREST OPTIONSTRADING BUSINESS FROM THE OTC MARKET SURPRISINGLY BIG OTC PLAYERS WERE THE FIRST TO EMBRACE THE NEW CONTRACTS WE HAVE SUBSTANTIAL POSITIONS IN THE FLEX SAYS A SENIOR EXECUTIVE AT SOCIETE GENERALE A FRENCH BANK ACTIVE IN THE OTC OPTIONS MARKET IT IS VERY USEFUL FOR OPTIONS DEALERS AMONG OTHER THINGS FLEX CONTRACTS ALLEVIATE A PROBLEM OF CREDIT RISK THAT EXISTS IN THE OTC MARKET IN THE OTC MARKET A FIRM OR INVESTOR THAT BUYS A CUSTOMIZED OPTION RELIES ON THE CREDITWORTHINESS OF THE FIRM SELLING IT AT THE CBOE OPTIONS CLEARING CORP GUARANTEES FLEXOPTION TRADES WITH ITS POOL OF 5 BILLION IN SECURITIES CASH AND OTHER INSTRUMENTS IN EFFECT THIS GUARANTEE HELPS REMOVE LIMITS ON HOW MUCH CREDIT RISK AN OPTIONSTRADING FIRM CAN TAKE ON ON THE OTC MARKET A FIRM MIGHT BE OFFERING OPTIONS AT A VERY DESIRABLE PRICE BUT MAYBE ITS CREDIT RATING IS NOT SO GOOD OR MAYBE MY FIRM HAS TAKEN ON ALL THE RISK FROM THIS PARTICULAR FIRM THAT IT CAN SAYS THE SOCIETE GENERALE EXECUTIVE FLEX SOLVES THIS PROBLEM BECAUSE IT'S GUARANTEED BY THE OPTIONS CLEARING CORP IT'S USEFUL FOR DEALERS WHO DON'T HAVE GREAT CREDIT OR WHO HAVE USED UP THEIR CREDIT LINES WITH THE TRADING COMMUNITY JOHN SUCCO MANAGING DIRECTOR FOR DERIVATIVES TRADING AT PAINEWEBBER INC ADDS ANOTHER WRINKLE HE SAYS HIS FIRM OFTEN USES FLEX OPTIONS TO HEDGE THE OPTIONS IT SELLS TO BIG INVESTORS ON THE OTC MARKET OUR CUSTOMERS STILL HAVE THE PROPENSITY TO USE OTC OPTIONS AND WHEN WE DO A TRADE WITH A CUSTOMER WE TEND TO GO DOWN AND SEE WHAT'S AVAILABLE AT THE FLEX MR SUCCO SAYS IN THIS REGARD FLEX OPTIONS ON THE RUSSELL SMALLSTOCK INDEX WOULD BE PARTICULARLY USEFUL BECAUSE OF THE POPULARITY OF SMALLCOMPANY STOCKS AMONG MONEY MANAGERS SAYS A TRADER AT CREDIT SUISSE FINANCIAL PRODUCTS ANOTHER FIRM ACTIVE IN THE OTC MARKET A LOT OF PEOPLE WANT TO BUY OR SELL THE RUSSELL ON THE OTC BUT AT THE MOMENT IT'S VERY DIFFICULT FOR US TO HEDGE THOSE POSITIONS THIS TRADER SAYS FLEX WOULD MAKE IT EASIER TO DO THAT IT'S IMPORTANT TO THE CBOE THAT THE FLEX MARKET NOT BECOME DOMINATED BY OPTIONS DEALERS HOWEVER THESE FIRMS WHICH TRADE AMONG THEMSELVES AS WELL AS WITH THE BIG INVESTORS WHO ARE THEIR CLIENTS CHARGE THEIR CUSTOMERS LESS FOR CUSTOMIZED OPTIONS THAN THEY CHARGE OTHER DEALERS A FLEX MARKET DOMINATED BY DEALERS COULD HAVE PRICES THAT ARE PROHIBITIVELY HIGH FOR SOME PENSION FUNDS AND MUTUAL FUNDS WE THINK IT HAS VALUE FOR PENSION FUND AND MUTUAL FUND MANAGERS AS WELL AS DEALERS IN THE OTC MARKET SAYS BILL BARCLAY VICE PRESIDENT FOR STRATEGIC PLANNING AT THE CBOE WE'RE HOPING THAT BOTH TYPES OF ENTITIES WILL SEE WAYS THEY CAN USE THEM 9305250149 930525 WHO'S NEWS CONTINENTAL AIRLINES CONTINENTAL AIRLINES HOUSTON DONALD G VALENTINE WAS NAMED SENIOR VICE PRESIDENTMARKETING SUCCEEDING JOHN W NELSON 49 YEARS OLD WHO RESIGNED TO PURSUE OTHER INTERESTS MR VALENTINE 45 WAS MOST RECENTLY SENIOR VICE PRESIDENT SALES AND MARKETING FOR KMART CORP'S PACE MEMBERSHIP WAREHOUSE INC UNIT OF ENGLEWOOD COLO 9305250148 930525 WHO'S NEWS ENCLEAN INC ENCLEAN INC HOUSTON MALCOLM WADDELL WAS NAMED TO THE ADDITIONAL POSITION OF PRESIDENT OF THIS INDUSTRIAL AND ENVIRONMENTAL SERVICES COMPANY MR WADDELL 41 YEARS OLD IS CURRENTLY CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE PREVIOUS PRESIDENT TIM TARRILLION 42 WAS NAMED PRESIDENT OF ONE OF THE OPERATING DIVISIONS ENCLEAN'S ENVIRONMENTAL SERVICES GROUP THE COMPANY ALSO NAMED DAVID M JOHNSON 40 EXECUTIVE VICE PRESIDENT OF OPERATIONS MR JOHNSON WAS MOST RECENTLY A REGIONAL VICE PRESIDENT JIM O'HARE 54 RESIGNED AS VICE PRESIDENT FINANCE TO PURSUE PERSONAL INTERESTS ENCLEAN HASN'T NAMED A SUCCESSOR 9305250147 930525 INTERNATIONAL JAPAN'S BID FOR WORLD LEADERSHIP HAUNTED BY WAR PAST ASIAN NEIGHBORS DEMAND INVESTIGATIONS APOLOGIES FOR ARMY BRUTALITY BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO EVERY TIME JAPAN ATTEMPTS TO TAKE A LARGER ROLE ON THE WORLD STAGE IT CONFRONTS HAUNTING VOICES LIKE THESE THE JAPANESE SOLDIERS CAME TO OUR PLACE SAID JULIA PORRAS RECALLING THAT DAY IN 1944 WHEN SHE WAS 15 THEY TIED MY HANDS AND DRAGGED ME BY MY HAIR TALKING TO REPORTERS IN TOKYO LAST MONTH THE FILIPINA WIPED AWAY TEARS AS SHE RECALLED JAPAN'S WARTIME OCCUPATION OF THE PHILIPPINES HER STORY CONTINUES JAPANESE SOLDIERS DRAGGED HER AWAY TO THEIR NEARBY ENCAMPMENT DURING THE DAY SHE HAD TO WASH THE SOLDIERS' CLOTHES DURING THE NIGHTS TWO TO THREE JAPANESE SOLDIERS WOULD TAKE TURNS RAPING ME AND THEN THERE IS THIS VOICE HIDEYUKI AIZAWA NOW 73 AND A MEMBER OF JAPAN'S PARLIAMENT IN AUGUST 1945 WAS A SOLDIER STATIONED IN NORTHERN KOREA AFTER JAPAN SURRENDERED SOVIET SOLDIERS CAPTURED HIM AND FOR THREE YEARS FORCED HIM INTO VIRTUAL SLAVERY AS A FARM WORKER ACROSS NORTH ASIA AND RUSSIA MANY OFFICERS SUFFERED FROM TUBERCULOSIS MALNOURISHMENT TYPHUS AND OTHER DISEASES HE SAYS THOUSANDS UPON THOUSANDS OF JAPANESE DIED THESE MEMORIES FROM THE WAR YEARS MAY BE FIVE DECADES OLD BUT THEY CONTINUE TO HOBBLE JAPAN AS IT SEEKS ITS PLACE IN THE WORLD JAPAN'S EFFORTS TO TRANSFORM ITS GREAT ECONOMIC POWER INTO DIPLOMATIC INFLUENCE SEEM FOREVER FRUSTRATED BY THE COLLECTIVE MEMORY OF OTHER ASIANS AND THE GHOSTS JAPAN NEVER LAID TO REST MANY JAPANESE SAY THEIR NATION SHOULD WITHHOLD AID FROM RUSSIA UNTIL RUSSIA FORMALLY APOLOGIZES FOR MISTREATING JAPANESE PRISONERS HELD AFTER THE WAR I DON'T SEE WHY WE SHOULD HELP SUCH A COUNTRY SEIROKU KAJIYAMA ONE OF JAPAN'S MOST POWERFUL POLITICIANS TOLD SUPPORTERS RECENTLY HE SAYS HE FEELS DISTRUST AND HATRED TOWARD THE RUSSIANS BECAUSE OF THEIR POSTWAR ACTIONS SEVERAL ASIAN GOVERNMENTS MEANWHILE SAY THEY CAN'T FULLY TRUST JAPAN UNTIL IT TOO APOLOGIZES TO ITS VICTIMS LATELY THOSE VICTIMS HAVE INCLUDED THE MANY COMFORT WOMEN JAPAN'S EUPHEMISM FOR THE WOMEN IT FORCED INTO PROSTITUTION FOR ITS TROOPS WHO HAVE BEEN HOLDING NEWS CONFERENCES THROUGHOUT THE REGION TO DEMAND COMPENSATION FROM TOKYO AS JAPAN PUSHES FOR A SEAT ON THE UNITED NATIONS SECURITY COUNCIL ACTIVISTS IN ASIA ARE PUSHING INSTEAD FOR A UN INVESTIGATION OF JAPAN'S WAR CRIMES JAPAN ISN'T ENTITLED TO TAKE LEADERSHIP SAYS KENICHI TAKAGI WHO IS HANDLING A LAWSUIT FILED AGAINST JAPAN BY MS PORRAS AND 17 OTHER WOMEN FROM THE PHILIPPINES ALL ASIAN NATIONS KNOW THAT WHAT WE WANT SOUTH KOREAN PRESIDENT KIM YOUNG SAM SAID IN A RECENT INTERVIEW IS FOR THE JAPANESE GOVERNMENT TO INVESTIGATE HONESTLY AND REVEAL THE TRUTH TO BOTH PEOPLES ABOUT THE IMPERIAL ARMY'S BROTHELS THAT HE SAID WILL ENHANCE THE BILATERAL RELATIONSHIP BETWEEN THE TWO COUNTRIES FOR MANY JAPANESE PARTICULARLY YOUNGER ONES JAPAN'S WARTIME GUILT IS AN IRRELEVANT ISSUE THE FEELING IS HOW LONG DO WE HAVE TO BE HAUNTED BY OUR PAST DEEDS ASKS YUKIO OKAMOTO A FORMER FOREIGN MINISTRY OFFICIAL ISN'T IT ENOUGH AFTER 50 YEARS JAPAN HAS IN FACT OFFICIALLY APOLOGIZED REPEATEDLY TO THE NATIONS OF THE REGION AND PAID REPARATIONS AND MANY JAPANESE SAY THEIR NATION IN RECENT YEARS HAS UNDERTAKEN MORE SOULSEARCHING ABOUT THE WAR NO MATTER WHAT JAPAN DOES NOW THE DEEP SCARS LEFT IN THE HEARTS OF MANY PEOPLES IN THE ASIAPACIFIC REGION WON'T HEAL COMPLETELY OVERNIGHT A GROUP OF ACADEMICS AND BUSINESSMEN WROTE LAST YEAR IN A REPORT COMMISSIONED BY THE PRIME MINISTER WE MUST CONTINUE TO CONFRONT OUR PAST AND ADDRESS THE PEOPLES OF THE COUNTRIES THAT SUFFERED UNDER US SOME OLD JAPANESE SOLDIERS ARE ALSO MAKING PUBLIC CONFESSIONS BEFORE THE END OF THER LIVES IN MARCH TAKASHI NAGASE A 75YEAROLD FORMER ARMY INTERPRETER TRAVELED TO THAILAND TO MEET WITH A FORMER BRITISH POW NEAR THE INFAMOUS BRIDGE ON THE RIVER KWAI MR NAGASE WHO HAD BEEN A SOLDIER IN THE CAMP APOLOGIZED FOR THE IMPERIAL ARMY'S BRUTALITY IN FORCING ITS CAPTIVES TO BUILD THE BRIDGE AND FOR THE MANY LIVES THAT EFFORT CLAIMED UNBURDENING HIMSELF HE SOBBED THESE ARE THE HAPPIEST MOMENTS OF MY LIFE ACCORDING TO PRESS ACCOUNTS OF THE MEETING STILL MANY ASIANS SAY THESE ARE SUPERFICIAL EPISODIC CONFESSIONS AND THAT JAPAN AS A NATION HAS NEVER FULLY SCRUTINIZED ITS ROLE IN WORLD WAR II THIS YEAR THE JAPANESE SUPREME COURT RULED THAT IT WAS ACCEPTABLE FOR BUREAUCRATS TO EDIT OUT OF TEXTBOOKS ACCOUNTS CRITICAL OF JAPAN'S WARTIME BEHAVIOR THE JUDGES REJECTED A 28YEAROLD COMPLAINT BY A CRUSADING HISTORIAN WHO SAID THE GOVERNMENT HAD ILLEGALLY CENSORED HIS BOOKS A WARD GOVERNMENT IN TOKYO MEANWHILE IS TRYING TO CREMATE RECENTLY DISCOVERED BONES BELIEVED TO BE EVIDENCE OF GRISLY CHEMICAL EXPERIMENTS THE WARTIME GOVERNMENT CARRIED OUT ON PRISONERS OF WAR ACTIVISTS WANT A MORE THOROUGH EXAMINATION OF THE REMAINS AND AN ACCOUNTING THUS IT ISN'T SURPRISING THAT OTHER ASIANS WANT JAPAN WHICH IS GIVEN TO AMNESIA TO WORK HARDER AT REMEMBERING IN RECENT MONTHS THREE INDONESIAN MEN CONSCRIPTED INTO THE JAPANESE IMPERIAL ARMY CAME TO TOKYO DEMANDING COMPENSATION FOR THEIR SERVICE A GROUP OF HONG KONG RESIDENTS SAID THEY WILL SUE JAPAN TO RECOVER MONEY THEY WERE FORCED TO EXCHANGE FOR JAPANESE MILITARY CURRENCY RENDERED WORTHLESS AFTER THE WAR MS PORRAS AND OTHER FILIPINAS FORCED INTO PROSTITUTION HAVE DEMANDED COMPENSATION WOMEN IN INDONESIA MALAYSIA AND SOUTH KOREA HAVE MADE SIMILAR CLAIMS AT WORST INEPT JAPAN'S HANDLING OF THE MATTER HAS AT BEST BEEN DEFENSIVE AT WORST INEPT AT FIRST GOVERNMENT OFFICIALS SAID THAT THOUGH BROTHELS MAY HAVE EXISTED PRIVATE ENTREPRENEURS WERE IN CHARGE THEN THE GOVERNMENT SAID IT HAD FOUND DOCUMENTS PROVING ARMY INVOLVEMENT OFFICIALS APOLOGIZED AND PROMISED TO EXPLORE COMPENSATION BUT THE GOVERNMENT STILL SAYS THERE'S NO EVIDENCE THE WOMEN WERE FORCED TO PROVIDE SEX FOR SOLDIERS HINTING THAT MANY MAY HAVE BEEN ENTREPRENEURS THEMSELVES THAT HASN'T SATISFIED JAPAN'S ASIAN NEIGHBORS SOUTH KOREA DEMANDS A THOROUGH INVESTIGATION PHILIPPINES PRESIDENT FIDEL RAMOS RAISED THE ISSUE DURING AN OFFICIAL TRIP TO TOKYO IN MARCH THE GOVERNMENT DOESN'T WANT TO FACE THE WAR ISSUE SAYS YOSHIAKI YOSHIMI A HISTORY PROFESSOR WHO HAS KEPT THE MATTER ALIVE BY DIGGING UP NEW EVIDENCE STEVE GLAIN IN SEOUL SOUTH KOREA CONTRIBUTED TO THIS ARTICLE 9305250145 930525 WHO'S NEWS COAL & ALLIED OFFICIAL RESIGNS IN THE WAKE OF TAKEOVER BY CRA SYDNEY AUSTRALIA TONY HARALDSON MANAGING DIRECTOR OF COAL & ALLIED INDUSTRIES LTD RESIGNED FROM THE AUSTRALIAN COAL PRODUCER FOLLOWING A TAKEOVER BY CRA LTD KEVIN BARDEN MANAGING DIRECTOR OF CRA COAL UNIT NOVACOAL PTY LTD WILL SUCCEED MR HARALDSON JULY 1 SIR NEIL CURRIE COAL & ALLIED CHAIRMAN SAID CRA WANTED TO APPOINT A MANAGING DIRECTOR FROM WITHIN ITS OWN RANKS SIR NEIL SAID MR HARALDSON DECLINED AN OFFER OF A SENIOR POSITION WITH CRA MANAGING ONE OF THE MINING GROUP'S OTHER DIVISIONS AND RESIGNED CRA 49OWNED BY RTZ CORP OF BRITAIN LAUNCHED AN OFFER OF 1150 AUSTRALIAN DOLLARS US799 A SHARE FOR COAL & ALLIED IN MARCH THAT SAW IT INCREASE ITS STAKE IN COAL & ALLIED TO JUST OVER 70 FROM 40 9305250144 930525 WHO'S NEWS BROWNFORMAN CORP BROWNFORMAN CORP LOUISVILLE KY WILLIAM C WELLBORN 38 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE LENOX INC SUBSIDIARY OF THIS LIQUOR AND CONSUMER PRODUCTS COMPANY HE SUCCEEDS ELWOOD L LAFORGE JR WHO RESIGNED LENOX BASED IN LAWRENCEVILLE NJ MAKES CHINA CRYSTAL SILVER PRODUCTS LUGGAGE AND OTHER CONSUMER PRODUCTS MR WELLBORN HAD BEEN CHIEF FINANCIAL OFFICER AND TREASURER OF THE ALPO PETFOODS INC DIVISION OF GRAND METROPOLITAN PLC 9305250143 930525 US AND RUSSIA INITIAL AVIATION AGREEMENTS WASHINGTON REUTER THE US AND RUSSIA INITIALED TWO CIVIL AVIATION AGREEMENTS THAT WILL ALLOW US CARRIERS TO USE NEW ROUTES OVER ASIA AND SERVE SEVERAL NEW DESTINATIONS IN RUSSIA THE STATE DEPARTMENT SAID THE AGREEMENTS WERE INITIALED IN LONDON ON MAY 21 THE STATE DEPARTMENT SAID THE PACTS WOULD UPDATE AND LIBERALIZE THE PREVIOUS 1990 AGREEMENT WITH THE FORMER SOVIET UNION US AIRLINES WILL GAIN OVERFLIGHT RIGHTS FROM EUROPE TO INDIA AND THE FAR EAST AND THE RIGHT TO FLY OVER THE RUSSIAN FAR EAST SAVING CONSIDERABLE TIME AND FUEL COSTS US CARRIERS ALSO WILL BE ABLE TO SERVE THE RUSSIAN CITIES OF VLADIVOSTOK MAGADAN KHABAROVSK PETRAPAVLOVSKKAMCHATSKIY AND YUZHNOSAKHALINSK RUSSIAN CARRIERS WILL BE PERMITTED ACCESS TO 10 NEW US CITIES INCLUDING DALLAS/FORT WORTH SEATTLE HOUSTON LOS ANGELES AND ORLANDO FLA 9305250142 930525 TIME WARNER UNIT DEBENTURES NEW YORK TIME WARNER INC SAID ITS WARNER COMMUNICATIONS INC UNIT HAS CALLED FOR REDEMPTION THE 117 MILLION OUTSTANDING OF ITS 10875 SUBORDINATED DEBENTURES DUE JUNE 1 1995 THE DEBENTURES WILL BE REDEEMED JUNE 23 AT 100 OF PRINCIPAL PLUS ACCRUED INTEREST TIME WARNER IS A LEADING MEDIA AND ENTERTAINMENT COMPANY 9305250141 930525 BUSINESS BRIEF AMETEK AND ICAHN SET SALE CONTINGENT ON EII DENOUEMENT NEW YORK INVESTOR CARL ICAHN DOESN'T EVEN OWN EII HOLDINGS INC AND MAY NEVER GET THE CHANCE BUT ALREADY HE'S GETTING OFFERS FOR PARTS OF THE CONGLOMERATE YESTERDAY AMETEK INC A MAKER OF INSTRUMENTS AND ELECTRICAL COMPONENTS SAID IT IS SEEKING TO BUY THE CULLIGAN WATER FILTRATION SYSTEMS BUSINESS FROM EII IN CONJUNCTION WITH MR ICAHN'S BID TO ACQUIRE EII WHICH IS IN CHAPTER 11 REORGANIZATION PROCEEDINGS IN FEDERAL BANKRUPTCY COURT MR ICAHN WASN'T FARING WELL YESTERDAY THOUGH IN HEARINGS ON EII'S REORGANIZATION PLAN BANKRUPTCY JUDGE CORNELIUS BLACKSHEAR SAID THAT THE COMPANY ISN'T FOR SALE AND THAT HE WANTED TO DEAL FIRST WITH SEEING A REORGANIZATION PLAN FOR EII CONFIRMED BEFORE CONCERNING HIMSELF WITH BIDS BY MR ICAHN OR ANYONE ELSE AMETEK BASED IN PAOLI PA SAID IT EXECUTED AN AGREEMENT WITH ICAHN HOLDINGS CORP A PRINCIPAL CREDITOR OF EII TO BUY CULLIGAN FOR 265 MILLION IN CASH THAT AGREEMENT RIGHT NOW HAS A BIG HURDLE TO CLEAR IT NEEDS JUDGE BLACKSHEAR'S APPROVAL ALONG WITH APPROVAL OF MR ICAHN'S BID WHICH DIDN'T LOOK LIKELY WALTER E BLANKLEY AMETEK'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID CULLIGAN IS A STRATEGIC ACQUISITION THAT WOULD OFFER A MAJOR OPPORTUNITY FOR AMETEK TO BUILD A WORLDWIDE FRANCHISE IN WATER FILTRATION THROUGH ITS PLYMOUTH PRODUCTS DIVISION AMETEK HAS BEEN BUILDING A PRESENCE IN THE MARKET FOR WATER TREATMENT EQUIPMENT AMETEK'S OFFER ALSO WAS CONDITIONAL ON ITS FINANCING IT SAID 175 MILLION OF THE 265 MILLION OFFER PRICE WOULD BE PAYABLE AT CLOSING AND WOULD BE FUNDED FROM ITS AVAILABLE CASH AND COMMITTED BANK FINANCING THE BALANCE OF 90 MILLION WOULD BE PAID BY ICAHN HOLDINGS AND WOULD BE REIMBURSED BY AMETEK 90 DAYS AFTER THE CLOSING HOWEVER THE AGREEMENT ALSO GIVES AMETEK AN OPTION TO REQUIRE ICAHN TO PURCHASE CULLIGAN FROM AMETEK FOR 175 MILLION IN CASH 9305250140 930525 RAWSTEEL PRODUCTION JUMPED 48 IN WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 48 LAST WEEK TO 1905000 TONS FROM 1818000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 666 FROM THE 1786000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 90 OF ITS CAPABILITY LAST WEEK COMPARED WITH 859 THE PREVIOUS WEEK AND 829 A YEAR AGO THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9305250139 930525 GROW GROUP DEBT REDEMPTION NEW YORK GROW GROUP INC SAID IT CALLED FOR REDEMPTION OF 26 MILLION OF 85 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2006 AT 10255 OF PAR PLUS ACCRUED INTEREST HOWEVER THE DEBENTURES ARE CONVERTIBLE AT 1261 PER COMMON SHARE OR 793 SHARES PER 1000 OF DEBENTURES THE PRODUCER OF SPECIALTY CHEMICAL COATINGS AND PAINTS AND HOUSEHOLD PRODUCTS SAID THE DEBENTURES HAVE A GREATER MARKET VALUE UPON CONVERSION THAN THE CASH OFFER AS LONG AS THE PRICE OF GROW COMMON STOCK IS MORE THAN 1336 THE SHARES YESTERDAY WERE QUOTED AT 16875 DOWN 375 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9305250138 930525 ECONOMY FINANCE STAFFS ARE TARGETS OF COST CUTS RESTRUCTURINGS ARE REACHING UP TO TOP EXECUTIVES BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL SUPERVISING JUST TWO PEOPLE JOAN DILLARD FELT UNDEREMPLOYED AT USF&G CORP AS AN ASSISTANT TO THE TREASURER AFTER BEING NAMED TO A TASK FORCE TO IDENTIFY COSTS TO CUT IN THE 51PERSON DEPARTMENT SHE FOUND AN OBVIOUS CANDIDATE HER OWN JOB DECIDING ON JOB CUTS WASN'T ROCKET SCIENCE SHE RECALLS THE BUZZ WORDS WERE LOWVALUE ACTIVITY HER GUTSY MOVE ACTUALLY LED TO A PROMOTION ONCE THE DEPARTMENT WAS REORGANIZED WITH 25 FEWER EMPLOYEES WHILE THE DECISION TO CUT HER OWN JOB AT THE BALTIMOREBASED PROPERTY AND CASUALTY COMPANY MAY MAKE HER UNUSUAL THE TASK MS DILLARD CONFRONTED IS ONE THAT GROWING NUMBERS OF HER COLLEAGUES IN THE FINANCIAL WORLD ARE FACING MANY COMPANIES ARE RETHINKING THE VALUE OF BIG FINANCE DEPARTMENTS SAYS ROGER PRATESI VICE PRESIDENT OF CSC/INDEX A CAMBRIDGE MASSBASED CONSULTING FIRM RESTRUCTURING FINANCE OPERATIONS IS THE NEW FRONTIER HE SAYS ALREADY EMPLOYERS HAVE SHED TENS OF THOUSANDS OF NONMANAGERIAL BOOKKEEPING ACCOUNTING AUDITING PAYROLL AND BILLING JOBS ACCORDING TO THE BUREAU OF LABOR STATISTICS THEY HAVE BEEN AMONG THE HARDESTHIT WHITECOLLAR JOB CLASSIFICATIONS AS THE PACE OF THE ECONOMIC RECOVERY DRAGS AND CORPORATE DOWNSIZING CONTINUES MORE FINANCERELATED JOBS ARE EXPECTED TO DISAPPEAR AND IT WON'T JUST BE UNDERLINGS ON THE WAY OUT WITH FINANCIAL MANAGEMENT AND PROFESSIONAL RANKS SWELLED IN MANY COMPANIES GROWING NUMBERS OF EXECUTIVES LIKE MS DILLARD AND EVEN TREASURERS CONTROLLERS AND CHIEF FINANCIAL OFFICERS ARE BEING SHOWN THE DOOR KNOWN BY SOME EMPLOYEES AS CHIEF FIRING OFFICERS MANY CFOS ARE BEING AXED BECAUSE THEY WEREN'T ASSERTIVE ENOUGH WITH THE KNIFE OTHERS ARE VICTIMS OF ANOTHER TREND FINANCE CHIEFS ARE NOW EXPECTED TO BE MORE THAN GOOD NUMBERS CRUNCHERS THE LATTERDAY CHIEF FINANCIAL OFFICER MUST HAVE BROAD VISION AND KEEN BUSINESS JUDGMENT THERE'S AN UNWILLINGNESS TO RIDE WITH PEOPLE WHO CAN'T COME UP WITH INNOVATIVE COSTCUTTING AND PROFITIMPROVEMENT PROGRAMS SAYS GLENN VAN DOREN PRESIDENT OF THE ASSOCIATION OF EXECUTIVE SEARCH CONSULTANTS A TRADE GROUP FOR HEADHUNTERS ABOUT 750 CHIEF FINANCIAL OFFICERS CONTROLLERS TREASURERS AND SOME OF THEIR ASSISTANTS ARE LOOKING FOR JOBS THROUGH THE PLACEMENT SERVICE OF THE 14000MEMBER FINANCIAL EXECUTIVES INSTITUTE THE NUMBER HAS CLIMBED STEADILY FOR THE PAST FOUR YEARS WHEN THE SERVICE WAS BEGUN SIMILARLY THE NUMBER OF JOBLESS MEMBERS HAS RISEN AT THE TREASURY MANAGEMENT ASSOCIATION WHOSE 7000 MEMBERS INCLUDE MORE LOWERLEVEL MANAGERS THAN THOSE AT FEI MANY COMPANIES ARE LOOKING FOR 50 REDUCTIONS IN FINANCE STAFFING SAYS EARL LANDESMAN A SPECIALIST ON FINANCIAL MANAGEMENT AT ANDERSEN CONSULTING YOU CAN'T TELL OTHER PEOPLE THEIR COSTS ARE EXCESSIVE IF YOUR COSTS ARE HE EXPLAINS IN A TYPICAL CENTRALIZED COMPANY HE SAYS FINANCIAL FUNCTIONS COST 15 OF SALES IN A DECENTRALIZED ONE 25 THAT REPRESENTS ANYWHERE FROM 10 TO 15 OF TOTAL SALARIED PERSONNEL IN NONFINANCIAL SERVICES COMPANIES ADDS MR PRATESI FINANCIAL STAFFING HAS SWELLED TO 25 IN SOME OF THOSE COMPANIES HE NOTES BECAUSE MANAGEMENT ADDED FINANCE PEOPLE TO FIND WAYS TO CONTROL COSTS THE ROLE MODEL FOR MANY COMPANIES IS FORD MOTOR CO THE AUTO MAKER CUT 50 OF ITS SALARIED FINANCE JOBS BETWEEN 1980 AND 1990 COMPARED WITH 38 SALARIED JOBS CORPORATEWIDE ACCORDING TO PENN STATE PROF STEPHEN JABLONSKY ONE OF THE MOST DRAMATIC CUTBACKS OCCURRED IN THE NORTH AMERICAN OPERATIONS' ACCOUNTS PAYABLE DEPARTMENT TO 125 EMPLOYEES FROM 500 UNDER FORD'S OLD SYSTEM ACCOUNTS PAYABLE WAS DELUGED WITH PAPER COPIES OF PURCHASE ORDERS FROM MANAGERS INVOICES FROM SUPPLIERS WAYBILLS FROM THE RECEIVING DEPARTMENT WHEN ACCOUNTS PAYABLE MATCHED THE THREE COPIES A CHECK WAS CUT NOW MANAGERS PUNCH ORDERS DIRECTLY INTO A DATABASE WHEN THE SHIPMENT ARRIVES AT THE DOCK A CLERK CHECKS THE DATABASE IF THE ORDER IS IN THE COMPUTER THE SUPPLIER'S CHECK IS AUTOMATICALLY CUT IF NOT THE ORDER IS REJECTED AMONG FORD'S CONVERTS IS HELLER FINANCIAL INC OVER THE PAST THREE YEARS THE CHICAGOBASED COMMERCIAL FINANCE COMPANY HAS CUT 300 OF 1500 JOBS MOSTLY IN CREDITAPPROVAL AND OPERATIONS THE COMPANY ANALYZED HUNDREDS OF ROUTINE PROCESSES LOOKING FOR UNNECESSARY STEPS SAYS RICHARD ALMEIDA CHIEF FINANCIAL OFFICER FOR EXAMPLE FACTORING TRANSACTIONS FROM REPEAT CUSTOMERS HOWEVER SMALL USED TO REQUIRE AS MANY AS SEVEN APPROVALS NOW THESE SMALL TRANSACTIONS NEED AS FEW AS TWO APPROVALS AT CONNER PERIPHERALS INC IN SAN JOSE CALIF OFFICIALS CENTRALIZED FINANCE ACTIVITIES AND AUTOMATED HEAVILY COMPUTER TECHNOLOGY NOW GATHERS DATA FROM GENERAL LEDGERS AND PLUGS IT INTO COSTACCOUNTING PROGRAMS CLERKS USED TO DO THE JOB SAYS DAVID MULLIN ASSISTANT CORPORATE CONTROLLER CONNER HAS USED THE EFFICIENCIES TO KEEP FINANCE STAFFING AT THE SAME LEVEL IT WAS TWO YEARS AGO WHILE SALES GREW 70 MR MULLIN SAYS BAXTER INTERNATIONAL INC DEERFIELD ILL CENTRALIZED ACCOUNTS PAYABLE CREDIT COLLECTIONS AND SOME OTHER FINANCE JOBS IN ALBUQUERQUE NM BEGINNING IN 1988 WHILE COMPANY REVENUE HAS GROWN ABOUT 10 A YEAR STAFFING FOR THESE FUNCTIONS IS AT THE SAME LEVEL AS FIVE YEARS AGO AND COSTS ARE DOWN 37 SAID BAXTER VICE PRESIDENT JAMES BRYANT COSTS WERE REDUCED PARTLY BY ELIMINATING MORE THAN A DOZEN MANAGEMENT JOBS AND INSTALLING SOPHISTICATED COMPUTER SOFTWARE AT USF&G IN 1991 ONE OF THE AREAS IN THE TREASURY DEPARTMENT MS DILLARD FOUND RIPE FOR ELIMINATION WAS THE 10PERSON UNIT THAT CASHED EMPLOYEE CHECKS AND SOLD BUS TOKENS SHE OBSERVED THAT THERE WERE NEARLY A DOZEN BANKS IN A THREEBLOCK RADIUS OF THE OFFICE AND DUBBED THE UNIT AN UNAFFORDABLE LUXURY MS DILLARD ALSO ELIMINATED THE JOB OF A MARKET WATCHER AN EMPLOYEE WHO SAT AT A COMPUTER ISSUING FLASH REPORTS ON GOLD PRICES AND OTHER MARKET MOVEMENTS DESPITE THE FACT THAT COMPANY TRANSACTIONS WERE RARE AS FOR HER OWN JOB SHE AND ANOTHER ASSISTANT VICE PRESIDENT REPORTED TO THE TREASURER AND EACH OF THE ASSISTANT VICE PRESIDENTS SUPERVISED TWO PEOPLE I ASKED WHY THE EXTRA LAYER WHY NOT HAVE FOUR PEOPLE REPORT DIRECTLY TO THE TREASURER SHORTLY BEFORE HER LAYOFF WAS TO TAKE EFFECT MS DILLARD'S BOSS WAS TRANSFERRED AND MS DILLARD WAS NAMED TREASURER I HAD HOPED THAT THEY WOULD HAVE FOUND MY TASK FORCE WORK VALUABLE AND KEEP ME ON SOMEWHERE BUT I WASN'T SURE FOR A WHILE SHE RECALLS 9305250137 930525 VALSPAR BUYS CARGILL ASSETS MINNEAPOLIS VALSPAR CORP SAID ITS MCWHORTER INC RESIN DIVISION BOUGHT CERTAIN ASSETS OF CARGILL INC'S RESIN PRODUCTS BUSINESS TERMS WEREN'T DISCLOSED VALSPAR A PAINT AND COATINGS COMPANY SAID THE TRANSACTION IS EXPECTED TO BE COMPLETED IN ABOUT TWO MONTHS PENDING CERTAIN REGULATORY APPROVALS 9305250136 930525 PLAZA HOME MORTGAGE PURCHASE SANTA ANA CALIF PLAZA HOME MORTGAGE CORP SAID IT AGREED DEFINITIVELY TO ACQUIRE MINNEAPOLISBASED SANDIA MORTGAGE CORP FOR 65 MILLION IN CASH AS MANY AS 600000 PLAZA HOME MORTGAGE SHARES AND THE ASSUMPTION OF 40 MILLION OF SANDIA DEBT PLAZA HOME MORTGAGE SAID THE NUMBER OF SHARES ISSUED IN CONNECTION WITH THE ACQUISITION OF CLOSELY HELD SANDIA WILL BE SUBJECT TO LATER ADJUSTMENT BASED ON THE PERFORMANCE OF SANDIA'S LOANSERVICING PORTFOLIO PLAZA HOME MORTGAGE HAS ABOUT 111 MILLION SHARES OUTSTANDING IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY PLAZA HOME MORTGAGE SHARES CLOSED AT 7625 UNCHANGED PLAZA HOME MORTGAGE SAID THAT WITH THE PURCHASE IT WILL ACQUIRE RESIDENTIAL LOANSERVICING RIGHTS ON ABOUT 33 BILLION IN MORTGAGES 9305250135 930525 SURVEY BY FED FINDS THE CREDIT CRUNCH MAY BE EASING FINALLY WASHINGTON THE CREDIT CRUNCH MAY FINALLY BE EASING UP THE LATEST FEDERAL RESERVE OPINION SURVEY ON BANK LENDING PRACTICES FOR MAY FOUND THAT A SIGNIFICANT NUMBER OF LOAN OFFICERS REPORTED AN EASING OF TERMS AND STANDARDS ON COMMERCIAL AND INDUSTRIAL LOANS THAT'S A CONTRAST FROM RECENT SURVEYS IN WHICH NEARLY ALL BANKS SAID THAT THEIR LENDING STANCE WAS BASICALLY UNCHANGED MOST OF THE 57 BANKS IN THE LATEST SURVEY SAID THEIR LENDING POLICIES WERE BASICALLY UNCHANGED BUT SIX OF THEM OR 105 SAID THEY HAD EASED SOMEWHAT THEIR CREDIT STANDARDS FOR LOANS TO MIDDLEMARKET COMPANIES BANKS ARE USUALLY RELUCTANT TO ACKNOWLEDGE THAT THEY ARE ADOPTING EASING LENDING POLICIES SO THE RESPONSE IS SIGNIFICANT THE NEW SURVEY ALSO FOUND THAT DEMAND FOR LOANS BY SMALL AND MEDIUMSIZED COMPANIES ALSO HAS GAINED MOMENTUM THOUGH LARGER COMPANIES SEEM TO BE LESS INTERESTED IN OBTAINING CREDIT THE POSSIBILITY THAT BUSINESSES ARE FINDING CREDIT MORE READILY AVAILABLE IS A GOOD SIGN ONE REASON MANY SMALL COMPANIES HAVE GIVEN FOR NOT EXPANDING THEIR OPERATIONS OR ADDING NEW WORKERS IS THAT CREDIT HAS BEEN HARD TO COME BY EASING THE CREDIT CRUNCH HAS BEEN HIGH ON THE PRIORITY LIST FOR THE CLINTON ADMINISTRATION AND FED CHAIRMAN ALAN GREENSPAN HAS SAID IT'S CRUCIAL FOR SPEEDING UP THE ECONOMIC RECOVERY ALMOST ALL LOAN OFFICERS WERE COMFORTABLE WITH THEIR BANK'S CAPITAL POSITION THAT HAS BEEN TRUE FOR THE PREVIOUS THREE SURVEYS AS WELL STILL MORE THAN A THIRD OF RESPONDENTS SAID THEY BELIEVE IN A BETTERSAFETHANSORRY APPROACH THEY'RE TAKING STEPS TO IMPROVE THEIR INSTITUTION'S CAPITAL POSITION EVEN MORE BANK LOAN OFFICERS ALSO SAID IN THE LATEST SURVEY THAT RISKINESS OF RESIDENTIAL MORTGAGE LENDING AND CONSUMER INSTALLMENT LENDING WAS SOMEWHAT LOWER NOW THAN IT WAS DURING THE RECESSION 9305250134 930525 WHO'S NEWS HALLIBURTON CO HALLIBURTON CO DALLAS LESTER L COLEMAN WAS APPOINTED EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL OF THIS OIL SERVICE AND CONSTRUCTION COMPANY THE POSITIONS WERE VACANT MR COLEMAN 50 YEARS OLD WAS PRESIDENT OF THE COMPANY'S ENERGY SERVICES GROUP 9305250133 930525 ALYESKA SUFFERS BLOW AS RULING BACKS COMPLAINT BY FIRED SAFETY INSPECTOR BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL THE US DEPARTMENT OF LABOR RULED THAT ALYESKA PIPELINE SERVICES CO ILLEGALLY FIRED A SAFETY INSPECTOR FOR BLOWING THE WHISTLE ON ALLEGED SAFETY AND ENVIRONMENTAL VIOLATIONS ALYESKA A CONSORTIUM OWNED BY EXXON CORP BRITISH PETROLEUM CO AND ATLANTIC RICHFIELD CO OPERATES THE TRANSALASKA PIPELINE AND THE OIL TANKER LOADING TERMINAL IN VALDEZ ALASKA ALYESKA HAS BEEN HIT BY CLAIMS FROM SIX FORMER INSPECTORS AND QUALITYCONTROL ENGINEERS ABOUT ONEQUARTER OF ALL SUCH INSPECTORS WORKING FOR THE COMPANY ALLEGING THAT THEY WERE FIRED AFTER POINTING OUT POTENTIALLY DANGEROUS SAFETY AND ENVIRONMENTAL PROBLEMS THEIR ALLEGATIONS HAVE ADDED TO CONCERNS THAT ALYESKA'S SAFETY AND ENVIRONMENTAL PRACTICES REMAIN POOR DESPITE PUBLIC AND CONGRESSIONAL CRITICISM TRIGGERED BY THE EXXON VALDEZ OIL SPILL IN MARCH 1989 THE LABOR DEPARTMENT RULING STEMMED FROM A WRONGFUL TERMINATION COMPLAINT BROUGHT AGAINST ALYESKA IN FEBRUARY BY RICHARD GREEN A VETERAN QUALITYCONTROL EXPERT WHO WORKED AS QUALITYCONTROL MANAGER AT THE TANKER TERMINAL FOR 20 MONTHS BEFORE BEING FIRED IN DECEMBER MR GREEN ALLEGED THAT HE WAS DISMISSED BECAUSE HE COMPLAINED TO ALYESKA MANAGEMENT AND LATER TO CONGRESSIONAL COMMITTEES THAT HIS INSPECTION TEAMS' REPORTS OF SERIOUS SAFETY AND ENVIRONMENTAL VIOLATIONS WERE BEING SWEPT UNDER THE RUG AND THAT INSPECTORS WERE BEING HARASSED FOR RAISING CONCERNS ALYESKA HAD ASSERTED THAT MR GREEN WAS TERMINATED AS A RESULT OF A CORPORATE REORGANIZATION UNRELATED TO HIS SAFETY COMPLAINTS HOWEVER IN ITS RULING THE LABOR DEPARTMENT FOUND THAT TERMINAL MANAGEMENT VIEWED INSPECTORS AS OPERATING WITH A GOTCHA' MENTALITY AND THAT MR GREEN WAS FIRED IN THE CONTEXT OF HIS SUBORDINATE INSPECTORS BEING ABUSED BY SOME MEMBERS OF MANAGEMENT IT SAID MR GREEN'S ACTIONS WERE PROTECTED BY WHISTLEBLOWER PROVISIONS OF VARIOUS FEDERAL ENVIRONMENTAL STATUTES THE AGENCY DESCRIBED AS UNCONVINCING ALYESKA'S CONTENTION THAT MR GREEN WAS LET GO BECAUSE OF A REORGANIZATION THE DEPARTMENT ORDERED ALYESKA TO EITHER REINSTATE MR GREEN WITH BACK PAY WHICH MR GREEN ESTIMATES WOULD TOTAL ABOUT 35000 OR TO PAY HIM HIS SALARY INCLUDING BACK PAY THROUGH THE END OF YEAR ALYESKA ALSO CAN APPEAL THE RULING AN ALYESKA SPOKESMAN DECLINED TO COMMENT SAYING THE COMPANY HADN'T YET RECEIVED A COPY OF THE LABOR DEPARTMENT RULING MR GREEN 55 YEARS OLD SAID HE FELT VINDICATED BY THE FINDINGS AND WOULDN'T MIND RETURNING TO ALYESKA THERE'S A FEW BAD APPLES THERE BUT I BELIEVE IN FINISHING WHAT I START HE SAID I'M HOPEFUL THIS RULING WILL BE A MESSAGE THAT THINGS HAVE TO CHANGE AT ALYESKA THE RULING COMES AT A TOUGH TIME FOR ALYESKA FIVE OTHER INSPECTORS SIMILARLY ALLEGE THAT THEY WERE FIRED FOR RAISING SAFETY AND ENVIRONMENTAL CONCERNS AND THEIR COMPLAINTS HAVE BEEN CONSOLIDATED AND ARE TO GO TO TRIAL BEFORE A LABOR DEPARTMENT ADMINISTRATIVE LAW JUDGE JUNE 9 ALL OF THOSE INSPECTORS WORKED WITH OR UNDER MR GREEN WHILE THE RULING DOESN'T DIRECTLY AFFECT THEIR CASES IT SEEMS TO BUTTRESS THEIR ALLEGATIONS STATING AT ONE POINT THAT MR GREEN'S SUBORDINATE INSPECTORS PERFORMED WITHIN THE PROTECTION OF THE WHISTLEBLOWER STATUTES MR GREEN SAID HE INTENDS TO TESTIFY ON BEHALF OF HIS FELLOW INSPECTORS THE FINDING ALSO IS LIKELY TO PROMPT INTENSIFIED SCRUTINY FROM CONGRESS INVESTIGATORS FROM A SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS LED BY REP JOHN DINGELL D MICH HAVE BEEN IN ALASKA IN RECENT WEEKS PROBING SOME OF THE INSPECTORS' ALLEGATIONS OF SAFETY PROBLEMS AND OTHER MATTERS RELATED TO ALYESKA'S OPERATIONS ADDITIONALLY THE JUSTICE DEPARTMENT STILL IS WEIGHING WHETHER TO BRING CRIMINAL CHARGES AGAINST ALYESKA FOR A SPYING CAMPAIGN IT ORCHESTRATED AGAINST CHARLES HAMEL A FORMER OIL TRADER WHO IS ALYESKA'S FOREMOST ENVIRONMENTAL CRITIC MR HAMEL'S CIVIL LAWSUIT AGAINST THE COMPANY OVER THE SPYING AFFAIR IS TO GO TO TRIAL THIS FALL IN FEDERAL COURT IN WASHINGTON 9305250132 930525 WORLD MARKETS TOKYO PRICES FINISH MIXED BUT NIKKEI DECLINES LATE RALLY IN LONDON ENDS LOSING STRING AT FOUR A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCK PRICES ENDED NARROWLY MIXED MONDAY BUT THE NIKKEI INDEX FELL AFTER A LATE BOUT OF INDEXLINKED ARBITRAGE SELLING IN REACTION TO WALL STREET'S EARLY ADVANCE LONDON SHARES STAGED A LATE RALLY TO END A STRING OF LOSING SESSIONS AT FOUR WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10560 DOWN 004 REFLECTING DECREASES IN ASIA/PACIFIC AND EUROPEAN MARKETS AND A RISE IN THE AMERICAS OILFIELD EQUIPMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11891 UP 206 OR 18 WITH DRESSER INDUSTRIES OF THE US POSTING AN 407 GAIN IN ITS LOCAL CURRENCY BIOTECHNOLOGY STOCKS TRAILED AT 6102 DOWN 139 OR 22 WITH AMGEN OF THE US SLIDING 58 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH JUMPED 22708 POINTS FRIDAY FELL 8131 TO 2047616 NEAR THE DAY'S LOW OF 2045357 IN TOKYO TUESDAY THE NIKKEI ROSE 22056 POINTS TO CLOSE THE MORNING SESSION AT 2069672 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 400 MILLION SHARES DOWN FROM 4253 MILLION SHARES IN THE PREVIOUS SESSION AS ACTIVITY REMAINED SUBDUED WHILE CORPORATE EARNINGS REPORTS CONTINUED TO EMERGE GAINERS AND LOSERS WERE EVENLY MATCHED AT 505 ISSUES EACH THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 1879 POINTS FRIDAY EDGED DOWN 243 TO 161069 THOUGH SENTIMENT GENERALLY REMAINED FIRM A JUMP IN JAPANESE GOVERNMENT BOND YIELDS MONDAY HELPED SEND THE NIKKEI LOWER THE BOND MARKET TURNED WEAKER AFTER A WALL STREET JOURNAL ARTICLE SAID US FEDERAL RESERVE OFFICIALS AT THEIR MEETING LAST WEEK VOTED TO LEAN TOWARD HIGHER SHORTTERM INTEREST RATES HIGHER JAPANESE RATES COULD CURB A SHIFT OF FUNDS TO STOCKS FROM BONDS SHIPBUILDING SHARES WERE MOSTLY HIGHER IN HEAVY TURNOVER AMID EXPECTATIONS THAT BIG INVESTMENT TRUST FUNDS TO BE LAUNCHED THIS WEEK WILL TARGET THOSE SHARES AND TELEPHONE STOCKS JUMPED ON BUYING BY DEALERS BUT ISSUES WITH WEAK PROFIT OUTLOOKS FOR THE CURRENT FISCAL YEAR WERE SOLD INCLUDING CONSTRUCTION COMPANIES BIG STEELMAKERS AND SOME ENGINEERING FIRMS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 134 POINTS TO 28256 THE FT 30STOCK INDEX ROSE 62 POINTS TO 21936 VOLUME WAS 5105 MILLION SHARES COMPARED WITH 699 MILLION SHARES IN THE PREVIOUS SESSION DEMAND REMAINED FAIRLY CAUTIOUS AS INVESTORS STILL AWAITED CLEARER SIGNALS ON BRITISH ECONOMIC INDICATORS AND CORPORATE EARNINGS GROWTH BUT THE LATE RALLY WAS CONVINCING BECAUSE DIVIDEND PAYMENTS YESTERDAY SHAVED THE EQUIVALENT OF 499 POINTS OFF THE FTSE 100 BEFORE TRADING EVEN STARTED YET THE MARKET'S RELIANCE ON WALL STREET FOR LEADERSHIP LARGELY REFLECTED WIDESPREAD UNCERTAINTY ABOUT HOW FAST THE BRITISH ECONOMY CAN RECOVER FROM RECESSION AND HOW MUCH IT MIGHT MIRROR THE UPS AND DOWNS THE US WENT THROUGH IN THE EARLY STAGES OF ITS REBOUND IN FRANKFURT SHARE PRICES WERE MOSTLY LOWER IN THIN TURNOVER THAT HAS CHARACTERIZED THE EXCHANGE FOR SEVERAL WEEKS THE DAX 30STOCK INDEX FELL 75 POINTS TO 160309 ACTIVITY WAS THIN FOLLOWING THE ASCENSION DAY HOLIDAY LAST WEEK WHICH MANY INVESTORS EXTENDED INTO A FOURDAY WEEKEND PARIS STOCKS RALLIED ACROSS THE BOARD IN THE WAKE OF FRENCH MONETARY AUTHORITIES' DECISION TO MOVE OFFICIAL INTEREST RATES DOWN ANOTHER NOTCH THOUGH VOLUME WAS LIGHT THE BANK OF FRANCE SAID IN THE EARLY AFTERNOON THAT IT WAS LOWERING ITS MONEYMARKET INTERVENTION RATE TO 75 FROM 725 AND ITS FIVETO10DAY REPURCHASE RATE BY A SIMILAR MARGIN TO 85 THE MOVE HAD BEEN WIDELY EXPECTED IN THE MONEY MARKET AND CONTINUED A TREND OF SIX INTERESTRATE REDUCTIONS IN THE PAST TWO MONTHS MOREOVER INVESTORS WERE CHEERED BECAUSE FRENCH RATES WERE BELOW THOSE OF GERMANY FOR THE FIRST TIME IN YEARS AND THE FRENCH FRANC FIRMED AGAINST THE GERMAN MARK AMSTERDAM PRICES FIRMED UNDERPINNED BY A STRONGER DOLLAR AND MODESTLY HIGHER PRICES ON WALL STREET MILAN STOCKS RECOVERED FROM EARLY PROFITTAKING TO FINISH LITTLE CHANGED MADRID SHARES ROSE SLIGHTLY ON EXPECTATIONS OF A CUT TODAY IN SPAIN'S BENCHMARK LENDING RATE STOCKHOLM EQUITIES WHICH HIT A 1993 HIGH LAST FRIDAY RETREATED IN HEAVY TRADING AS THE STRENGTHENING OF THE SWEDISH KRONA WHICH TENDS TO REDUCE REVENUES FOR EXPORTERS DAMPED INVESTORS' SPIRITS AND LED TO SOME PROFITTAKING BRUSSELS STOCKS ENDED MIXED BUT BANKING SHARES SLUMPED ON PROFITTAKING IN SYDNEY TRADING WAS QUIET FOR MOST OF THE DAY UNTIL NEWS OF THE POSSIBLE TIGHTENING OF US MONEY POLICY FORCED A SELLOFF OF STOCKS IN MOST AUSTRALIAN SECTORS BUT IN HONG KONG SHARES SMASHED THROUGH A MAJOR RESISTANCE LEVEL ON THE MARKET'S MAIN INDEX AND STOCK PRICES CLIMBED TO NEW HIGHS HONG KONG SHARES JUMPED INITIALLY ON NEWS THAT CHINA AND BRITAIN WILL MEET AGAIN FRIDAY TO DISCUSS THE TERRITORY'S POLITICAL FUTURE BUT PROFITTAKING WIPED OUT PART OF THE GAINS BEFORE THE MARKET ACCELERATED AGAIN IN MIDDAY ON INDICATIONS OF PROGRESS IN THE PREVIOUS TALKS SUNDAY AND ON ACTIVITY LINKED TO THE FUTURES MARKET TAIPEI SHARE PRICES FELL FOR THE FIFTH CONSECUTIVE SESSION AFTER AN EARLY TECHNICAL REBOUND WAS DISSIPATED BY LOSSES IN FINANCIAL ISSUES INVESTORS ALSO WERE WORRIED THAT ELECTRICITY SHORTAGES MIGHT HURT TAIWAN'S INDUSTRIAL PRODUCTION SEOUL STOCKS ENDED MIXED AS A WAVE OF LATE PROFITTAKING PULLED PRICES DOWN FROM THE DAY'S HIGHS WHICH APPROACHED PEAKS FOR THIS YEAR WELLINGTON STOCKS ENDED HIGHER AFTER ABSORBING SOME PROFITTAKING AMONG CORPORATE DEVELOPMENTS IN TOKYO YAMANOUCHI PHARMACEUTICAL SLUMPED 60 YEN OR 24 TO 2480 YEN 2248 CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 EDGED UP 31 TO 697 BILLION YEN 6319 MILLIONN FROM A YEAR EARLIER YAMANOUCHI CITED STRENGTH IN ITS MAINSTAY PHARMACEUTICAL LABELS AND STABILITY IN OVERSEAS OPERATIONS BUT NOTED ITS SEVERE BUSINESS ENVIRONMENT WITH THE JAPANESE GOVERNMENT MANDATING CUTS AVERAGING 81 IN DRUG PRICES FUJISAWA PHARMACEUTICAL DECLINED 10 TO 1120 UNCONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 SWELLED 47 TO 2276 BILLION YEN DESPITE HEIGHTENED COMPETITION AND THE GOVERNMENTORDERED DRUGPRICE REDUCTIONS ISHIKAWAJIMAHARIMA HEAVY INDUSTRIES FELL 3 TO 531 THE HEAVYMACHINERY MAKER AND SHIPBUILDER REPORTED THAT ITS GROUP PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 DROPPED 21 TO 3755 BILLION YEN 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 9305250131 930525 PARAMOUNT WILL REDEEM NOTES NEW YORK PARAMOUNT COMMUNICATIONS INC SAID IT WILL CALL FOR REDEMPTION ON JULY 1 ALL 100 MILLION OF OUTSTANDING 8 1/2 SENIOR NOTES DUE JULY 1 1996 THE REDEMPTION PRICE IS 100 OF THE FACE AMOUNT INTEREST WILL BE PAID TO JULY 1 PARAMOUNT IS A PUBLISHING AND ENTERTAINMENT COMPANY 9305250130 930525 TECHNOLOGY IN THE LAB NUCLEARPLANT DESIGN NEARS CRUCIAL TEST BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL ARGONNE ILL AT THEIR SPRAWLING FACILITY HERE SOUTHWEST OF CHICAGO ARGONNE NATIONAL LABORATORY RESEARCHERS CLUSTER AROUND A GLASSWALLED GLOVE BOX A TECHNICIAN PUSHES HIS HANDS INTO HEAVY RUBBER GLOVES MOUNTED IN TWIN PORTHOLES AND REACHES THROUGH THE WALLS OF THE 12FOOTHIGH CHAMBER MUCH AS A FASTFOOD WORKER READIES FROZEN FRENCH FRIES FOR A DIP IN THE FRYER THE TECHNICIAN BEGINS PLACING CHOPPEDUP PIECES OF METAL ROD INTO A MESH BASKET UNCLE SAM HAS SPENT 700 MILLION AND NEARLY A DECADE ON THIS PROJECT THE INTEGRAL FAST REACTOR AND FOR MANY THE DESIGN REPRESENTS THE FUTURE OF NUCLEAR ENERGY BUT THE PROJECT'S OWN FUTURE IS NOW IN DOUBT THE INTEGRAL FAST REACTOR IS DESIGNED TO RECYCLE ITS OWN NUCLEAR FUEL THAT MEANS IT WOULD PRODUCE DRASTICALLY LESS NUCLEAR WASTE THAN THE CURRENT GENERATION OF COMMERCIAL NUKES CHURNS OUT IN THEORY IT COULD EVEN GET RID OF THE MOST DANGEROUS ELEMENTS FROM THE NUCLEAR WASTE OF CONVENTIONAL NUCLEAR PLANTS HELPING AMELIORATE A GROWING WASTEDISPOSAL PROBLEM IT ALSO APPEARS TO OFFER A POTENTIAL MEANS OF DISPOSING OF PLUTONIUM FROM DISMANTLED NUCLEAR BOMBS AND MISSILES ITS SUPPORTERS SAY TESTS HAVE PROVED THAT THE SODIUMCOOLED REACTOR IS IMMUNE TO THE TYPES OF MISHAPS THAT BEFELL CHERNOBYL OR THREE MILE ISLAND WHILE ALL THE PARTS HAVE WORKED IN ENGINEERINGSCALE DEMONSTRATIONS ONLY THE PROTOTYPE REACTOR BEING BUILT BY ABOUT 300 WORKERS IN IDAHO CAN PROVE IF THE INTEGRAL CONCEPT IS PRACTICAL YET THE TECHNICAL HURDLES MAY BE FAR LESS DIFFICULT TO CLEAR THAN THE POLITICAL ONES PRESIDENT CLINTON INITIALLY SOUGHT TO HALT ALL FUNDING FOR THE PROJECT ONLY AFTER GENERATING SOME HEAT OF THEIR OWN DID LOCAL POLITICIANS MANAGE TO WIN 22 MILLION IN FISCAL 1994 FUNDS FOR LIMITED FURTHER RESEARCH DELETED THOUGH FROM NEXT YEAR'S PROPOSED BUDGET ARE OUTLAYS TO OPERATE THE PROTOTYPE PLANT AND WITHOUT ITS COMPLETION RESEARCHERS WON'T KNOW IF THE REACTOR ACTUALLY WORKS FOR THIS NATION'S ENERGY FUTURE TERMINATION OF THIS PROJECT JUST BEFORE IT WILL BE PROVED OR DISPROVED IS A TRAGEDY CONTENDS CHARLES E TILL ASSOCIATE DIRECTOR FOR ENGINEERING RESEARCH AT ARGONNE NATIONAL LABORATORY AND HEAD OF THE PROJECT STILL SKEPTICS ABOUND IT HAS BEEN NEARLY TWO DECADES SINCE GROUND WAS BROKEN FOR A NEW US NUCLEAR PLANT ARE THEY TALKING ABOUT TURNING SEAWATER INTO GOLD TOO SAYS ROBERT POLLARD A NUCLEAR SAFETY ENGINEER WHO QUIT THE NUCLEAR REGULATORY COMMISSION 17 YEARS AGO AND IS NOW WITH THE UNION OF CONCERNED SCIENTISTS WITH THE INTEGRAL FAST REACTOR YOU'VE GOT A BUNCH OF PEOPLE WHO HAVEN'T PRODUCED ANYTHING USEFUL IN 30 YEARS TRYING TO SAVE THEIR JOBS HE ADDS DESPITE THE BUDGET SETBACK JITTERY ARGONNE SCIENTISTS AND ENGINEERS CONTINUE PREPARING FOR WHAT THEY HAVE IMAGINED WOULD BE THE PAYOFF FOR THE YEARS OF DESIGN STUDIES AND LAB WORK PERFORMED ON SMALLSCALE DEMONSTRATION DEVICES EVEN AS THE FINETUNING EXPERIMENTS CONTINUE A TEST REACTOR IS BEING TRANSFORMED INTO THE PROTOTYPE REACTOR MAINLY BY CONVERTING A FUELRECYCLING FACILITY THE IDAHO SITE SHOULD BE OPERABLE AS AN INTEGRAL FAST REACTOR LATE THIS YEAR BUT BECAUSE THE ENERGY DEPARTMENT IS MOVING TO SHUT THE TEST REACTOR IT APPEARS THERE WILL BE FUNDS ENOUGH JUST TO TRY THE RECYCLING PROCESS AS AN EXPERIMENTAL METHOD TO ELIMINATE THE NUCLEAR WASTE LEFT IN THE PLANT RATHER THAN AS AN INTEGRATED OPERATION MEANWHILE AT THE LAB HERE RESEARCHERS BEGIN YET ANOTHER EXPERIMENTAL RUNTHROUGH OF THE ELECTROREFINING TECHNIQUE CENTRAL TO THE INTEGRAL FAST REACTOR'S RECYCLING PROCESS THE BASKET OF METAL RODS IN ITS CHAMBER FILLED WITH INERT GASES HOLDS MORSELS OF URANIUMZIRCONIUM ALLOY ABOUT TO BE IMMERSED IN A VESSEL OF SALTS AND HEATED TO 930 DEGREES FAHRENHEIT SUSPENDED AT THE END OF A POSITIVELY CHARGED ANODE AND HIT WITH A HEAVY SURGE OF ELECTRICITY THE 10 KILOGRAMS OF METAL CHUNKS IN THE BASKET WILL DISSOLVE THE METAL IONS WILL MIGRATE THROUGH THE MOLTEN SALTS THEN COLLECT IN A FOOTLONG CYLINDER OF SPIDERY STRANDS AT THE BASE OF A NEGATIVELY CHARGED ELECTRICAL POLE KNOWN AS A CATHODE IF THIS WERE HOT FUEL TAKEN FROM A WORKING PLANT THE PIECES OF ROD WOULD ALSO CONTAIN FISSION MATERIAL SUCH MATERIAL IS THE NUCLEAR ASH OF UNWANTED ISOTOPES THAT BUILD UP IN THE FUEL RODS AND IMPEDE THE REACTION EVENTUALLY REQUIRING THE FUEL TO BE REPLACED THE ELECTROREFINING WOULD LEAVE THAT UNWANTED FISSION MATERIAL EITHER ON THE ANODE OR IN THE SALTS HOWEVER IN THIS EXPERIMENT THE RESEARCHERS ARE USING NONRADIOACTIVE DEPLETED URANIUM TO PERMIT EASIER HANDLING THE CHEMISTRY IS THE SAME SAYS CHEMICAL ENGINEER EDDIE GAY GAZING THROUGH THE GLASS LIKE A PROUD FATHER OUTSIDE A HOSPITAL NURSERY THIS WORKS IN THE RECYCLING SYSTEM THE METALLIC MIXTURE THAT EMERGES FROM THE ELECTROREFINING PROCEDURE IS FURTHER PURIFIED BY HIGHTECH CRUCIBLES KNOWN AS CATHODE PROCESSORS LEAVING INGOTS OF PURE NUCLEAR FUEL THAT CAN BE CAST INTO NEW FUEL RODS CONVENTIONAL NUCLEAR POWER PLANTS HAVE TO PULL THEIR FUEL RODS PERIODICALLY BECAUSE OF THE BUILDUP OF FISSION MATERIAL EVEN THOUGH 95 OF THE POTENTIAL ENERGY IS LEFT INSIDE SUCH RODS HOWEVER THE ABSENCE OF A REPROCESSING FACILITY FOR EXISTING FUEL RODS IN THE US OR EVEN A PLACE TO BURY THEM MEANS THAT THE HIGHLY RADIOACTIVE SPENT RODS HAVE BEEN SITTING FOR DECADES IN HOLDING POOLS NEAR NUCLEAR POWER PLANTS AROUND THE COUNTRY BUT THE INTEGRAL FAST REACTOR HAS DRAWN FIRE BECAUSE IT IS A BREEDER REACTOR WHICH CREATES MORE FUEL THAN IT BURNS THE FUEL CREATED IS DEADLY PLUTONIUM AND THE US DECIDED A DECADE AGO NOT TO PURSUE THE DESIGN OTHER COUNTRIES HAVE FEWER QUALMS ABOUT USING BREEDER REACTORS OR ABOUT REPROCESSING FUEL IN FRANCE AND THE UNITED KINGDOM FOR INSTANCE CHEMICAL REPROCESSING OF NUCLEAR WASTE STRIPS OUT THE FISSION MATERIAL ALLOWING THE FUEL TO BE REUSED BUT THE PROCESS ISOLATES THE PLUTONIUM THAT ALSO FORMS DURING NUCLEAR FISSION CREATING A HAZARD THAT'S VERY HARD TO DISPOSE OF AND BECAUSE PLUTONIUM IS EASILY CONVERTIBLE TO WEAPONS MATERIAL POSES PROLIFERATON HAZARDS IN THE INTEGRAL FAST REACTOR'S RECYCLING PROCESS THE PLUTONIUM AND OTHER LONGLIVED ACTINIDES THAT FORM DURING THE REACTION AREN'T STRIPPED OUT DURING REPROCESSING INSTEAD THOSE ELEMENTS ACCOMPANY THE URANIUM THROUGH THE VARIOUS STEPS AND BACK INTO THE RECYCLED FUEL RODS TO BE BURNED UP IN THE REACTOR NEVERTHELESS THE REACTOR'S FOES SEE THE PROJECT AS JUST A REPACKAGED VERSION OF THE BREEDER TECHNOLOGY DUBBED THE CLINCH RIVER PROGRAM DISCARDED A DECADE AGO GIVEN THE ABSENCE OF ECONOMIC JUSTIFICATION FOR THE REACTOR AS A GENERATION TECHNOLOGY PROPONENTS OF THE PROJECT ARE NOW ADVANCING A WASTEMANAGEMENT MISSION FOR IT WROTE 22 MEMBERS OF THE HOUSE SCIENCE SPACE AND TECHNOLOGY COMMITTEE RECENTLY TO CHAIRMAN GEORGE E BROWN BUT THAT MISSION POSES THE SAME ECONOMIC ENVIRONMENTAL AND NUCLEAR PROLIFERATION PROBLEMS THAT KILLED THE ORIGINAL BREEDER REACTOR PROGRAM THE LAWMAKERS CONTEND ITS DESIGNERS UNDERSTANDABLY THINK DIFFERENTLY DR ROBERT HOLTZ STANDING NEXT TO A FULLSCALE PROCESSOR WHOSE DESIGN AND CONSTRUCTION HE HAS OVERSEEN FOR SEVERAL YEARS DECLARES IT A TERRIBLE WASTE IF THE PROJECT IS ALLOWED TO DIE TO THROW THIS OPTION AWAY SEEMS HE BEGINS BEFORE PAUSING TO SEARCH FOR A SCIENTIST'S MALEDICTION NOT VERY INTELLIGENT 9305250129 930525 BUSINESS BRIEF PPG INDUSTRIES INC CALIFORNIA PLANT IS FOURTH STRUCK BY UNION MEMBERS PPG INDUSTRIES INC SAID 200 WORKERS STRUCK ITS FLATGLASS PLANT IN FRESNO CALIF THE FOURTH PPG FACILITY TO BE STRUCK THIS MONTH THE FRESNO WORKERS ARE MEMBERS OF THE ALUMINUM BRICK AND GLASS WORKERS WHOSE MEMBERS ALSO WALKED OFF THEIR JOBS AT THE OTHER THREE PLANTS THE PITTSBURGH MAKER OF GLASS AND CHEMICALS SAID IT WOULD OPERATE THE PLANT WITH SALARIED WORKERS THE COMPANY SAID THE TWO SIDES DISAGREE OVER SEVERAL ISSUES PARTICULARLY HEALTH CARE THE CONTRACT EXPIRED MAY 16 AND WAS EXTENDED THROUGH LAST WEEKEND 9305250128 930525 WHO'S NEWS QUALCOMM QUALCOMM SAN DIEGO JANICE OBUCHOWSKI 41 YEARS OLD WAS ELECTED A DIRECTOR INCREASING THE SIZE OF THE BOARD TO 13 SHE IS PRESIDENT OF FREEDOM TECHNOLOGIES INC A TELECOMMUNICATIONS RESEARCH AND CONSULTING FIRM IN WASHINGTON QUALCOMM IS INVOLVED IN DIGITAL WIRELESS COMMUNICATIONS TECHNOLOGIES 9305250127 930525 WHO'S NEWS S&T BANCORP S&T BANCORP INDIANA PA WILLIAM J GATTI PRESIDENT OF GATTI SERVICES INC A PHARMACY CONCERN WAS NAMED A DIRECTOR OF THIS BANK HOLDING COMPANY THE APPOINTMENT OF MR GATTI 51 YEARS OLD INCREASES THE SIZE OF THE BOARD TO 20 9305250126 930525 INTERNATIONAL TAIWAN TRADE WITH CHINA TAIPEI TAIWAN'S INDIRECT TRADE WITH CHINA VIA HONG KONG CLIMBED 25 TO 187 BILLION IN THE JANUARYMARCH PERIOD FROM 150 BILLION A YEAR EARLIER THE BOARD OF FOREIGN TRADE SAID IN THE FIRST THREE MONTHS OF 1993 TAIWAN'S EXPORTS TO CHINA LEAPED 32 TO 163 BILLION FROM 123 BILLION FROM A YEAR AGO WHILE IMPORTS FELL 92 TO 244 MILLION FROM 269 MILLION IN THE YEAREARLIER PERIOD THE GOVERNMENT AGENCY ATTRIBUTED THE 25 LEAP IN THE TAIWANCHINA TRADE AND 32 JUMP IN EXPORTS TO BOTH RISING INDIRECT INVESTMENTS IN CHINA AND SHIPPING SEMIFINISHED PRODUCTS TO MAINLAND CHINA FOR PRODUCTION AND REEXPORT THE BOFT ATTRIBUTED THE 92 DECLINE IN IMPORTS FROM CHINA TO THE GOVERNMENT'S ACTIVE CRACKDOWN ON SMUGGLING 9305250125 930525 BUSINESS BRIEFS RJR NABISCO HOLDINGS CORP'S NABISCO FOODS GROUP OPENED A NEW 44 MILLION MARGARINE MANUFACTURING PLANT IN INDIANAPOLIS CATALYTICA INC SIGNED A LETTER OF INTENT TO JOINTLY DEVELOP AN ULTRALOWEMISSION CATALYTIC COMBUSTION SYSTEM WITH GENERAL MOTORS CORP'S ALLISON GAS TURBINE DIVISION MAXXIM MEDICAL INC AGREED TO BUY THE STERILE DESIGN BUSINESS FROM JOHNSON & JOHNSON MEDICAL INC A UNIT OF JOHNSON & JOHNSON TERMS WEREN'T DISCLOSED WESTINGHOUSE ELECTRIC CORP WON A 54 MILLION CONTRACT TO SUPPLY POWER GENERATING EQUIPMENT TO A COLOMBIAN CONSORTIUM CONSISTING OF BANCO GANADERO CONSORCIO COLOMBIANO INDUSTRIAL SA AND COMPANIA SEVILLANA DE ELECTRICIDAD SA IMO INDUSTRIES INC SOLD THE ASSETS OF ITS HEIM BEARINGS DIVISION TO PRIVATELY HELD ROLLER BEARING CO OF AMERICA TERMS WEREN'T DISCLOSED JOHNSON & HIGGINS AGREED TO ACQUIRE A 25 INTEREST IN BROCKMAN Y SCHUH A MEXICAN INSURANCE BROKER COMPUTER NETWORK TECHNOLOGY CORP TENTATIVELY AGREED TO ACQUIRE CLOSELY HELD ULTRA NETWORK TECHNOLOGIES INC IN EXCHANGE FOR 350000 SHARES OF COMPUTER NETWORK COMMON STOCK CURRENTLY VALUED AT SLIGHTLY LESS THAN 2 MILLION 9305250124 930525 LINCOLN NC REALTY FUND OFFER PALO ALTO CALIF LINCOLN NC REALTY FUND INC SAID TWO INVESTMENT TRUSTS AGREED TO BEGIN A TENDER OFFER FOR UP TO 665 OF LINCOLN'S OUTSTANDING SHARES AT 490 EACH LINCOLN SAID THE OFFER BY SCHNITZER TRUST PARTNERS OF PORTLAND ORE AND MARTIN TRUST PARTNERS OF SAN FRANCISCO IS EXPECTED TO BEGIN WITHIN A WEEK AND IS CONDITIONED ON THE TENDER OF AT LEAST 60 OF LINCOLN'S SHARES THE REAL ESTATE INVESTMENT TRUST HAS ABOUT 19 MILLION SHARES OUTSTANDING THE INDICATED VALUE OF THE OFFER FOR 665 OF THE SHARES IS 62 MILLION LINCOLN'S SHARES HAVE RECENTLY BEEN TRADING ON THE AMERICAN STOCK EXCHANGE AT BETWEEN 4 AND 450 EACH IN LATE TRADING YESTERDAY LINCOLN'S SHARES CLOSED AT 45625 A SHARE UP 5625 CENTS WILLIAM GARLOCK LINCOLN'S PRESIDENT SAID THE TRUST HAD PLANNED TO LIQUIDATE BUT THE TENDER WOULD PROVIDE SHAREHOLDERS WITH A BETTER PRICE FOR THEIR STOCK 9305250123 930525 INTERNATIONAL ITALY'S IRI DELAYS FOOD UNIT SALE MILAN ITALY'S STATE INDUSTRIAL HOLDING ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE SAID IT HAS DELAYED THE SALE OF ITS FOOD SUBSIDIARY SME'S INDUSTRIAL ASSETS UNTIL JULY 31 IRI HAD INTENDED TO CONCLUDE THE SALE OF SME'S INDUSTRIAL ASSETS BY THE END OF JUNE THE INDUSTRIAL ASSETS ARE TO BE SPLIT INTO TWO COMPANIES BEFORE THE SALE SME'S OLIVE OIL AND CANNED TOMATO DIVISION WILL BE GROUPED UNDER A NEW HOLDING CALLED CIRIO BERTOLI DE RICA FINANZIARIA SPA AND ITS FROZEN FOOD AND SWEETS DIVISION WILL BE HELD BY FINANZIARIA ITALGEL SPA IRI SAID THAT COMPANIES INTERESTED IN BUYING THE TWO GROUPS MUST MAKE FINAL OFFERS BY JUNE 15 IRI ALSO PLANS TO SELL OFF THE RESTAURANT AND RETAIL DIVISION OF SME WHICH STANDS FOR SOCIETA MERIDIONALE FINANZIARIA SPA 9305250122 930525 INTEGRATED HEALTH SERVICES HUNT VALLEY MD INTEGRATED HEALTH SERVICES INC CLOSED A 100 MILLION REVOLVING CREDIT FACILITY TO FINANCE WORKING CAPITAL REQUIREMENTS MAKE ACQUISITIONS AND FOR OTHER CORPORATE PURPOSES THE FACILTY WHICH WILL MATURE IN APRIL 2000 REPLACES A 50 MILLION REVOLVING CREDIT LOAN CITIBANK IS AGENT FOR THE CREDIT LINE IHS PROVIDES SUBACUTE STAGE MEDICAL AND REHABILITATIVE SERVICES AND OPERATES 65 FACILITIES WITH MORE THAN 8500 BEDS 9305250121 930525 MARKETING & MEDIA CROWN PUBLISHERS DENIES BOY'S BOOK ON AIDS IS HOAX EXISTENCE OF DYING TEENAGER WHO WAS ABUSE VICTIM IS QUESTIONED BY NEWSWEEK BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CROWN PUBLISHERS DENIED THE SUGGESTION IN A NEWSWEEK MAGAZINE ARTICLE THIS WEEK THAT THE AUTHOR OF ITS BOOK ROCK AND A HARD PLACE MAY NOT EXIST SAYING IN A LETTER TO BOOKSELLERS THAT WE STAND BEHIND THE BOOK AND ITS AUTHOR ABSOLUTELY AND WITHOUT RESERVATION NEWSWEEK SAID IT STANDS BY ITS ARTICLE A ROCK AND A HARD PLACE BY ANTHONY GODBY JOHNSON IS THE STORY OF A TEENAGE BOY DYING OF AIDS WHO WRITES THAT HE WAS BRUTALLY ABUSED BY HIS PARENTS BUT THEN ADOPTED BY LOVING SOCIAL WORKERS NEWSWEEK SUGGESTS THAT THE STORY IS TOO GOOD TO BE TRUE AND NOTES THAT NOBODY AT THE PUBLISHING HOUSE HAS SEEN TONY IN PERSON THE BOY IS SAID TO BE TOO ILL WITH TUBERCULOSIS AND AIDS TO HAVE VISITORS THE NEWSWEEK ARTICLE SUGGESTS THAT THE BOOK MAY HAVE BEEN WRITTEN BY PAUL MONETTE A WELLKNOWN WRITER WHO RECOMMENDED THE MANUSCRIPT TO HIS OWN AGENT AND WHO WROTE THE BOOK'S INTRODUCTION CROWN PUBLISHERS MR MONETTE AND OTHERS ASSOCIATED WITH THE BOOK EXPRESSED OUTRAGE AT THE NEWSWEEK ACCUSATION AS DID THE MAKEAWISH FOUNDATION OF NEW JERSEY WHICH GAVE TONY THE COMPUTER WITH WHICH HE PURPORTEDLY WROTE THE BOOK I CAN ABSOLUTELY PROMISE YOU THIS ISN'T A HOAX SAYS A SPOKESWOMAN FOR THE FOUNDATION WE NEVER GRANT A WISH WITHOUT GETTING A COMPLETE STATEMENT FROM A CHILD'S PHYSICIAN MR MONETTE AUTHOR OF 16 BOOKS AND WINNER OF THE NATIONAL BOOK AWARD FOR NONFICTION LAST YEAR FOR HIS BOOK BECOMING A MAN SAID IN A TELEPHONE INTERVIEW YESTERDAY I NEVER TOUCHED A WORD OF TONY'S MANUSCRIPT I TALKED TO THIS KID EVERY NIGHT FOR AN HOUR AND A HALF FOR A YEAR AND HE WOULD READ A PIECE AND I'D SAY VERY GOOD KEEP GOING' ADDS MR MONETTE I NEVER VISITED THE KID BUT WHY SHOULD I I'M DYING OF AIDS MYSELF AND I DON'T WANT TO GET TB YOU KNOW I'VE NEVER MET PHILLIP ROTH EITHER BUT IT NEVER CROSSED MY MIND HE DOESN'T EXIST DARRYL PONICSAN A WRITER WHO IS WORKING ON A SCRIPT FOR A TELEVISION MOVIE ABOUT TONY SENT A LETTER TO NEWSWEEK ATTACKING THE ARTICLE I'VE WORKED DAILY WITH TONY FOR FIVE MONTHS ON THE FILM ADAPTATION OF HIS STORY WRITES MR PONICSAN I'VE READ WHAT HE'S WRITTEN SINCE A ROCK AND A HARD PLACE' HE'S ALMOST FINISHED A NOVEL WRITING IN BED WITH THE KEYBOARD ON HIS CHEST AND IT IS BRILLIANT I'VE HEARD THE WHEEZING COUGHING AND STRUGGLING FOR BREATH THAT HE MANAGED TO HIDE FOR THE FEW MINUTES HE SPOKE WITH THE NEWSWEEK REPORTER NEWSWEEK WROTE THAT IN A LENGTHY PHONE INTERVIEW HE TONY NEVER ONCE WHEEZED COUGHED OR STRUGGLED FOR BREATH DESPITE FAMILY PROTESTATIONS THAT HIS LUNGS HAVE BEEN RAVAGED BY PNEUMONIA SINCE IT WAS PUBLISHED IN LATE APRIL A ROCK AND A HARD PLACE HAS BEEN EMBRACED BY SOME INDEPENDENT BOOKSELLERS AS REPORTED IN THIS PAPER BUT HASN'T BEEN A HUGE SELLER ABOUT 20000 COPIES ARE CURRENTLY IN PRINT AND SO FAR THE BOOK HAS APPEARED ON JUST ONE REGIONAL BESTSELLER LIST IN SEATTLE CROWN IS A UNIT OF ADVANCE PUBLICATIONS INC 9305250120 930525 WHO'S NEWS INTERNATIONAL BUSINESS MACHINES CORP INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY ABBY KOHNSTAMM SENIOR VICE PRESIDENT FOR CARDMEMBER MARKETING AT AMERICAN EXPRESS CO WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT FOR CORPORATE MARKETING MS KOHNSTAMM 39 YEARS OLD SERVED AS EXECUTIVE ASSISTANT IN 1986 AND 1987 TO LOUIS V GERSTNER JR NOW IBM CHAIRMAN WHEN HE WAS PRESIDENT OF AMERICAN EXPRESS MOST RECENTLY SHE HAS BEEN RESPONSIBLE FOR MARKETING GREEN GOLD AND PLATINUM CARD PRODUCTS TO EXISTING CARDMEMBERS MS KOHNSTAMM WILL START HER NEW JOB AT THE COMPUTER MANUFACTURER JUNE 7 9305250119 930525 STONE & WEBSTER UNIT CONTRACTS NEW YORK STONE & WEBSTER INC SAID A UNIT WAS AWARDED SEPARATE CONTRACTS FOR HYDROELECTRIC PROJECTS IT IS PART OF A JOINT VENTURE THAT WILL ENGINEER AND BUILD A NEW POWERHOUSE AND OTHER FACILITIES IN A 515 MILLION PROJECT FOR MONTANA POWER CO AND THE UNIT WILL ENGINEER DESIGN PURCHASE EQUIPMENT AND PROVIDE OTHER SERVICES FOR THE BLUE RIVER HYDROELECTRIC PROJECT OF THE EUGENE OREGON WATER & ELECTRIC BOARD BOTH PROJECTS ARE SCHEDULED FOR COMPLETION IN 1995 9305250117 930525 WHO'S NEWS ADVACARE ADVACARE INC DALLAS HAROLD ERGOTT 61 YEARS OLD WAS NAMED CHAIRMAN OF THIS BUSINESS SERVICES COMPANY SUCCEEDING WILLIAM JOE DAVIS III 46 WHO IS STEPPING DOWN FOR HEALTH REASONS BUT WILL REMAIN AT THE COMPANY AS VICE CHAIRMAN MR ERGOTT IS THE MANAGING DIRECTOR OF A PRIVATE INVESTMENT AND MERGERS AND ACQUISITION COMPANY JHM ENTERPRISES ADVACARE WHICH PROVIDES MANAGEMENT SERVICES TO HEALTHCARE COMPANIES ALSO NAMED SAM YAU 44 CHIEF OPERATING OFFICER MR YAU WAS SENIOR VICE PRESIDENT FOR FINANCE AND ADMINISTRATION IN THE TAPE DRIVE DIVISION OF CONNER PERIPHERALS INC 9305250116 930525 CREDIT MARKETS PRICES OF LONGTERM BONDS CLIMB IN REACTION TO SIGNAL OF FED'S RESOLVE TO BATTLE INFLATION BY TOM HERMAN AND LYNN K ADLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BOND TRADERS REACTED ENTHUSIASTICALLY TO A NEW SIGN OF THE FEDERAL RESERVE'S DETERMINATION TO TAKE FURTHER STEPS IF NEEDED TO FIGHT INFLATION PRICES OF LONGTERM GOVERNMENT BONDS ROSE ERASING FRIDAY'S LOSSES THE TREASURY'S BENCHMARK 30YEAR BONDS GAINED ABOUT HALF A POINT OR ABOUT 5 FOR EACH 1000 FACE AMOUNT TO 101 17/32 THEIR YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE FELL TO 7 FROM 704 AT THE SAME TIME PRICES OF SHORTERTERM GOVERNMENT ISSUES FELL SLIGHTLY AND RATES ROSE THUS THE GAP BETWEEN SHORTTERM AND LONGTERM RATES NARROWED A DEVELOPMENT KNOWN IN BOND JARGON AS A FLATTENING OF THE YIELD CURVE TRADERS SAID THE MAIN CATALYST WAS AN ARTICLE IN THE WALL STREET JOURNAL REPORTING THAT FED OFFICIALS VOTED AT A CLOSEDDOOR MEETING LAST WEEK TO LEAN TOWARD RAISING SHORTTERM INTEREST RATES THE ARTICLE SAID THIS DECISION DOESN'T MEAN THE FED WILL RAISE RATES RIGHT AWAY BUT THE VOTE DOES UNDERLINE THE CENTRAL BANK'S CONCERN ABOUT RECENT SIGNS THAT INFLATION MAY BE PICKING UP STEAM THE ARTICLE CITED PEOPLE FAMILIAR WITH THE FED'S DELIBERATIONS A FED SPOKESMAN DECLINED COMMENT THE BOND MARKET WAS RELIEVED TO LEARN THAT IF NECESSARY THE FED WOULD TIGHTEN TO CURB INFLATION SAID NANCY LAZAR EXECUTIVE VICE PRESIDENT OF ISI GROUP INC AN INVESTMENT RESEARCH COMPANY BECAUSE OF THE FED'S WILLINGNESS TO CLAMP DOWN ON INFLATION A LOT OF MARKET PLAYERS ARE EXTENDING OUT THE CURVE AND BUYING LONGTERM BONDS WHILE SELLING SHORTTERM ISSUES SAID JOEL D KAZIS MANAGING DIRECTOR IN CHARGE OF GOVERNMENT BOND TRADING AND SALES AT UBS SECURITIES INC SPECULATION ABOUT A POSSIBLE FED MOVE HAS BEEN GROWING BECAUSE OF RECENT GOVERNMENT REPORTS SHOWING UNEXPECTED SURGES IN APRIL PRODUCER AND CONSUMER PRICES TRADERS ALSO HAVE BEEN CONCERNED ABOUT A SURGE IN THE PRICE OF GOLD VIEWED BY SOME AS A SENSITIVE BAROMETER OF INFLATION PRESSURES BUT SOME ANALYSTS HAD QUESTIONED WHETHER THE FED WOULD BE WILLING TO RISK CRITICISM FROM THE CLINTON ADMINISTRATION BY RAISING RATES AT A TIME WHEN THE ECONOMY REMAINS ANEMIC OTHER ANALYSTS ARGUE THAT THE LATEST INFLATION JITTERS ARE NONSENSE AND THAT THE FEDERAL RESERVE WON'T NEED TO RAISE RATES AT ANY TIME IN THE FORESEEABLE FUTURE JUMPY BOND TRADERS AFTER ALL ARE FAMOUS FOR ANTICIPATING FED POLICY CHANGES THAT NEVER OCCUR INDEED ONE MARKET QUIP GOES THAT TRADERS HAVE ANTICIPATED FIVE OF THE PAST TWO FED MOVES MY GUESS IS THAT INFLATION IS LIKELY TO SLOW AND IN TURN INTEREST RATES WILL DECLINE MS LAZAR SAID AN ISI GROUP REPORT YESTERDAY CITED LOTS OF ANECDOTAL EVIDENCE POINTING TO CONTINUED DOWNWARD PRESSURE ON WAGES AND PRICES EVEN SO THE POSSIBILITY THAT THE FED MIGHT ACT SENT RIPPLES THROUGHOUT THE MARKETS YESTERDAY AT ONE STAGE PRICES OF LONGTERM TREASURY ISSUES WERE UP ABOUT 7/8 POINT BEFORE FADING IN THE AFTERNOON IN SHARP CONTRAST PRICES OF MANY INTERMEDIATETERM TREASURY NOTES SANK ABOUT 1/8 POINT OR 125 FOR EACH 1000 FACE AMOUNT ANOTHER REASON TRADERS ARE SHYING AWAY FROM SHORTERTERM SECURITIES IS CONCERN ABOUT A BIG WAVE OF NEW TREASURY BORROWING THIS WEEK TODAY THE TREASURY WILL SELL ABOUT 1575 BILLION OF TWOYEAR NOTES FOLLOWED BY 11 BILLION OF FIVEYEAR NOTES TOMORROW AND 1475 BILLION IN ONEYEAR BILLS THURSDAY THE TREASURY WILL CONTINUE TO ISSUE HUGE AMOUNTS OF SHORTTERM AND INTERMEDIATETERM SECURITIES IN COMING MONTHS THE CLINTON ADMINISTRATION RECENTLY ANNOUNCED PLANS TO SELL FEWER LONGTERM BONDS AND MORE SHORTERTERM SECURITIES IN AN EFFORT TO CUT THE GOVERNMENT'S BORROWING COSTS PEOPLE ARE STARTING TO REALIZE THAT THERE IS A LOT OF SUPPLY COMING IN THE THIRD QUARTER SAID ALAN LEVENSON A MONEY MARKET ECONOMIST AT UBS SECURITIES WE'VE PACKED A LOT OF SUPPLY INTO THE SHORT END AT A TIME WHEN THE FED MIGHT START TIGHTENING AS OF LATE YESTERDAY THREEYEAR TREASURY NOTES YIELDED 459 UP FROM 453 FRIDAY THUS THE GAP BETWEEN THREEYEAR NOTES AND 30YEAR BONDS FELL TO 241 PERCENTAGE POINTS FROM 251 PERCENTAGE POINTS MUNICIPAL BOND PRICES WERE LITTLE CHANGED YESTERDAY CORPORATE BOND PRICES WERE MIXED WHILE MORTGAGE SECURITIES PRICES INCHED LOWER LONGTERM BONDS REGAINED POPULARITY YESTERDAY AS INVESTORS VEERED AWAY FROM SHORTERTERM ISSUES AMONG OTHER ACTIVELY TRADED ISSUES THE TREASURY'S FIVEYEAR NOTES YIELDED 536 LATE YESTERDAY UP FROM 533 LATE FRIDAY THE SEVENYEAR NOTE'S YIELD ROSE TO 579 FROM 578 WHILE THE 10YEAR NOTE'S YIELD ROSE TO 617 FROM 616 NEWS OF THE FED'S DECISION TO TILT TOWARD RAISING RATES LET THE MARKET FEEL THE FED IS STILL VIGILANT AGAINST INFLATION SAID MEAD BRIGGS AT DEUTSCHE BANK GOVERNMENT SECURITIES INC HERE ARE DETAILS OF THE TREASURY'S REGULAR WEEKLY AUCTION OF NEW SHORTTERM BILLS EVENLY DIVIDED BETWEEN 13WEEK AND 26WEEK ISSUES HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED MAY 27 THE 13WEEK BILLS MATURE AUG 26 1993 AND THE 26WEEK BILLS MATURE NOV 26 1993 HERE WE GO AGAIN CALIFORNIA IS RUNNING LOW ON CASH THUS THE STATE IS PLANNING A 2 BILLION FINANCING IN MIDJUNE TO TRY TO HELP AVERT A REPEAT OF LAST YEAR'S FINANCIAL DEBACLE GRAY DAVIS CALIFORNIA'S COMPTROLLER TOLD DOW JONES CAPITAL MARKETS REPORT THE STATE IS EXPECTED TO PRICE THE SHORTTERM SECURITIES AROUND JUNE 16 MR DAVIS SAID THE SECURITIES LIKELY WILL MATURE DEC 23 BUT COULD BE REDEEMED SOONER IF CASH FLOW PERMITS CALIFORNIA'S ECONOMY IS STILL IN THE DOLDRUMS ALTHOUGH THERE ARE SOME HOPEFUL SIGNS MR DAVIS SAID OUR CHALLENGE NOW IS TO FIND NEW INDUSTRIES TO REPLACE THE VOID CREATED BY THE CUTBACKS IN THE DEFENSE INDUSTRY ABOUT A YEAR AGO THE CALIFORNIA GOVERNMENT WAS PARALYZED BY A BUDGET STALEMATE AND HAD TO ISSUE A FLOOD OF IOUS TO PAY ITS BILLS FOR THE FIRST TIME SINCE THE DEPRESSION IN THE MUNICIPAL MARKETS YESTERDAY PRICES WERE LITTLE CHANGED AMERICAN STANDARD INC OFFERED 650 MILLION OF NOTES AND DEBENTURES YESTERDAY THE FIRST IN A STRING OF NEW JUNK OFFERINGS DUE THIS WEEK AMERICAN STANDARD AMONG THE WORLD'S LARGEST PRODUCERS OF AIRCONDITIONING SYSTEMS AND BATHROOM AND KITCHEN FIXTURES OFFERED 200 MILLION OF EIGHTYEAR SENIOR SUBORDINATED NOTES THE COMPANY ALSO OFFERED 450 MILLION IN PROCEEDS OF 12YEAR SENIOR SUBORDINATED DISCOUNT OR ZEROCOUPON DEBENTURES THE FACE VALUE OF THE ISSUE IS 751 MILLION THE STRUCTURE OF THE DISCOUNT DEBENTURES IS SIMILAR TO OTHER ZEROCOUPON ISSUES WHICH PAY NO INTEREST UNTIL MATURITY BUT IN THIS CASE INTEREST PAYMENTS BEGIN AFTER FIVE YEARS AT A RATE OF 105 UNTIL MATURITY BOTH ISSUES MOVED HIGHER SHORTLY AFTER BEING FREED TO TRADE IN THE SECONDARY MARKET CONCERN ABOUT THE FED'S BIAS TOWARD TIGHTENING MONETARY POLICY AND THIS WEEK'S NEW TREASURY SUPPLY KEPT MOST INVESTMENTGRADE BORROWERS ON THE SIDELINES BANKAMERICA CORP OFFERED THE SOLE HIGHGRADE DEBT ISSUE WHILE CITICORP PLACED A WELLRECEIVED 13 MILLION SHARES OF 25 DEPOSITARY PREFERRED STOCK SECONDARY VOLUME WAS WEAK IN BOTH THE HIGHGRADE AND HIGHYIELD MARKETS INVESTMENTGRADE BONDS LOST 1/8 AMONG INTERMEDIATES BUT LONGERDATED ISSUES FIRMED 1/4 JUNK BONDS ENDED LITTLE CHANGED PRICES OF CURRENTCOUPON MORTGAGEBACKED SECURITIES LOST GROUND IN A QUIET SESSION THE YIELDS ON CURRENTCOUPON MORTGAGES WIDENED ABOUT 003 PERCENTAGE POINT TO THE TREASURY CURVETHE FIRST WIDENING SEEN IN SEVERAL DAYSDESPITE THE PERSISTENT LACK OF FRESH SUPPLY FROM MORTGAGE BANKERS ONE FACTOR IN THE DECLINE IN THE MORTGAGE MARKET WAS A FLATTENING IN THE YIELD CURVE A SITUATION THAT MAKES REPACKAGING MORTGAGES INTO MULTICLASS SECURITIES LESS PROFITABLE THERE WAS ONLY ONE NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT ANNOUNCED A 262 MILLION ISSUE OF FREDDIE MAC SECURITIES SERIES 1545 BACKED BY 30YEAR 8 COLLATERAL 9305250115 930525 DOVATRON COMPLETES SEPARATION BINGHAMTON NY DOVATRON INTERNATIONAL INC SAID IT COMPLETED ITS SEPARATION FROM DOVER CORP AND WILL OPERATE AS A HOLDING COMPANY OF ELECTRONICS MANUFACTURING CONCERNS DOVATRON'S SHARES WERE DISTRIBUTED TO SHAREHOLDERS OF DOVER IN A TAXFREE SPINOFF IN 1992 DOVATRON HAD SALES FROM CONTINUING OPERATIONS OF 101 MILLION AND NET INCOME OF 46 MILLION 9305250114 930525 WHO'S NEWS UNITED ASSET MANAGEMENT CORP UNITED ASSET MANAGEMENT CORP BOSTON EXECUTIVES OF THREE SUBSIDIARY COMPANIES WERE NAMED DIRECTORS OF THIS INVESTMENT MANAGEMENT FIRM AS PART OF ITS POLICY OF ROTATING THREE SEATS ON ITS 12MEMBER BOARD THE NEW DIRECTORS ARE W OLIN NISBET III DAVID A POLAK AND JOHN T SIEGEL THEY SUCCEED MICHAEL FLYNN TIMOTHY HAVENS AND CHARLES JACOBS 9305250113 930525 WHO'S NEWS GM NAMES EBBERT TO POST OF PRESIDENT FOR AN ASIAN GROUP DETROIT GENERAL MOTORS CORP IN A MOVE TO FURTHER EXPAND ITS OPERATIONS IN ASIA NAMED WILLIAM A EBBERT TO THE NEWLY CREATED POSITION OF PRESIDENT OF THE AUTOMOTIVE COMPONENTS GROUP ASIA/PACIFIC OPERATIONS MR EBBERT 50 YEARS OLD MOST RECENTLY WAS MANAGING DIRECTOR AT GM'S VAUXHALL MOTORS LTD UNIT IN LUTON ENGLAND HE IS SUCCEEDED BY CHARLES E GOLDEN 46 A GM VICE PRESIDENT AND FORMER TREASURER ABOUT 22 OR 54 BILLION OF ACG WORLDWIDE'S BUSINESS IS GENERATED OUTSIDE GM'S CORE NORTH AMERICAN OPERATIONS AND MUCH OF THE ANTICIPATED INCREASED DEMAND WILL COME FROM THE EUROPEAN AND ASIA/PACIFIC MARKETS DEMAND FOR VEHICLES EQUIPPED WITH ENGINEMANAGEMENT SYSTEMS PASSENGERCONVENIENCE FEATURES AND SAFETYRELATED EQUIPMENT IS GROWING GM SAID MEANWHILE HEIDI KUNZ 38 ASSISTANT TREASURER SUCCEEDS MR GOLDEN AS TREASURER AND WAS ALSO NAMED SECRETARY OF THE NOMINATING COMMITTEE FOR GM'S BOARD 9305250112 930525 PEPPERAND SALT THE DELICATESSEN IS JUST WHAT I'VE BEEN NEEDING TO DEVOTE MORE TIME TO READING PITHIER CAMPAIGN COMMENTS ASTOUND BITES 9305250111 930525 LAW LEGAL BEAT TEXAS LAWYERS SEEK BILL TO CURB THEIR SOLICITING BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS TRIAL LAWYERS ARE AIMING A TOUGH BILL AT THEMSELVES THAT WOULD MAKE SOLICITING CLIENTS A FELONY THE PROPOSED LAW IS DESIGNED TO PREVENT AMBULANCE CHASING THE PROFESSION'S MOST CRASS FORM OF MARKETING AND EASE THE GROWING PUBLIC CONTEMPT FOR LAWYERS A LAWYER WHO SOLICITS A CLIENT IN PERSON OR BY TELEPHONE COULD LAND A 10YEAR PRISON SENTENCE AND A 10000 FINE UNDER THE BILL WHICH THE TEXAS LEGISLATURE IS EXPECTED TO ENACT SOON THE MEASURE ALSO RESTRICTS DIRECT MAILINGS BY LAWYERS TO POTENTIAL CLIENTS SUCH AS PERSONALINJURY VICTIMS PEOPLE RECENTLY ARRESTED AND DIVORCING COUPLES AND IT WOULD BAN OTHERS FROM SOLICITING ON BEHALF OF LAWYERS THE PROPOSAL WOULDN'T AFFECT ADVERTISING IT WOULD APPLY ONLY TO DIRECT SOLICITATION EITHER IN PERSON OR BY PHONE OF PEOPLE WHO MIGHT HAVE CASES THE BILL IS SOMETHING OF A NOVELTY IN TEXAS SOME FORMS OF SOLICITATIONS ARE ALREADY A MISDEMEANOR OFFENSE BUT NOBODY IT SEEMS CAN REMEMBER A LAWYER EVER BEING PROSECUTED FOR RUNNING AFTER A CLIENT TEXAS LAWYER GROUPS SAY THAT IF SOLICITATION IS A FELONY PROSECUTORS WILL BE MORE APT TO PURSUE OVEREAGER LAWYERS THE LAW WOULD PROBABLY ATTRACT NATIONAL ATTENTION AS WELL NO OTHER STATE HAS A LAW ON THE BOOKS MAKING SOLICITING A CRIMINAL OFFENSE TO SAY THERE IS STRONG SUPPORT IN THE LEGISLATURE WOULD BE WRONG SAYS DEMOCRATIC STATE REP STEVEN WOLENS A LAWYER FROM DALLAS WHO IS SPONSORING THE BILL THERE IS OVERWHELMING SUPPORT THE PROPOSED LAW WHICH WOULD BE THE FIRST OF ITS KIND IN THE COUNTRY ALREADY HAS PASSED IN THE STATE SENATE AND IS PENDING BEFORE THE HOUSE THIS WEEK THE MEASURE IS THE STRONGEST RECOGNITION YET FROM LAWYERS THAT SOLICITATION AND ADVERTISING WHILE GOOD FOR BUSINESS HAVE BEEN TERRIBLE FOR THE PROFESSION'S IMAGE IN TEXAS FOCUS GROUPS CONDUCTED BY LAWYERS HAVE EVINCED A HATRED OF LAWYERS AND THE PROFESSION DUE LARGELY TO THE WAY SOME ADVERTISE AND SOLICIT FOR BUSINESS SAYS RICHARD C HILE COMMUNICATIONS CHAIRMAN FOR THE TEXAS TRIAL LAWYERS ASSOCIATION A PLAINTIFFS GROUP AND ONE OF THE SUPPORTERS OF THE BILL WE HAVE JUST CONTINUED TO SEE THIS PROBLEM GROWING GEOMETRICALLY YEARLY AND NOTHING GETTING DONE SAYS MR HILE THE PROBLEM WAS HIGHLIGHTED IN 1989 WHEN A SCHOOL BUS CARRYING 81 STUDENTS IN SOUTHERN TEXAS WAS HIT BY A DR PEPPER DELIVERY TRUCK AND RAMMED INTO A WATERFILLED PIT TWENTYONE STUDENTS WERE KILLED ATTRACTING A SWARM OF PLAINTIFFS ATTORNEYS DRAWN AS MUCH BY HE DEEP POCKETS OF THE BOTTLING COMPANY THAT OWNED THE TRUCK AS BY THE TRAGEDY ONE PLAINTIFFS LAWYER ALLEGEDLY PAID 10000 TO A GOBETWEEN TO REFER HIM TO THE PARENTS OF A CHILD WHO HAD DIED ANOTHER ALLEGEDLY FORGAVE A 700 DEBT OWED BY A LOCAL WOMAN AND OFFERED 500 FOR EACH CLIENT SHE HELPED SOLICIT IN OTHER PUBLICIZED CASES PLAINTIFFS LAWYERS IN TEXAS HAVE POSED AS RED CROSS WORKERS AND PRIESTS TO GET AT INJURY VICTIMS OR GRIEVING FRIENDS AND FAMILIES AS IN OTHER STATES A HUGE SIDE INDUSTRY HAS SPROUTED UP IN TEXAS THAT CONVERTS ACCIDENT INFORMATION AND OTHER LEGAL FILINGS INTO A DATABASE THAT CAN BE MARKETED FOR DIRECTMAIL SOLICITATIONS IN HOUSTON LONG KNOWN AS A FRIENDLY FORUM FOR PLAINTIFFS 16 COMPANIES MARKET DATABASES IN ACCIDENT REPORTS ARREST RECORDS AND DIVORCE FILINGS ACCORDING TO THE TEXAS TRIAL LAWYERS ASSOCIATION THOSE WHO BUY THE LISTS INCLUDE NOT JUST LAWYERS BUT ALSO DOCTORS CHIROPRACTORS REPAIR SHOPS AND SECURITYRELATED BUSINESSES THE PROPOSED LAW COULD PUT A CRIMP IN THAT LINE OF WORK IT WOULD ALLOW AUTOACCIDENT VICTIMS TO DESIGNATE ON POLICE REPORTS WHETHER THEY WANT TO BE CONTACTED BY ANYONE WHO MAY HAVE A FINANCIAL INTEREST IN THEIR INJURY ANY PROFESSIONAL LOOKING FOR BUSINESS WHO VIOLATES A PRIVACY REQUEST COULD BE CHARGED WITH A MISDEMEANOR PUNISHABLE BY A 3000 FINE AND A YEAR BEHIND BARS OTHER PROVISIONS ALSO MISDEMEANOR OFFENSES WOULD BAR DIRECTMAIL SOLICITATIONS TO VICTIMS AN THEIR FAMILIES FOR 31 DAYS AFTER AN AUTO ACCIDENT SIMILARLY PEOPLE ARRESTED BY POLICE OR COUPLES FILING FOR DIVORCE WOULD GET 31 DAYS BEFORE LAWYERS AND OTHER INTERESTED PROFESSIONALS COULD MAIL THEM SOLICITATIONS LEGAL ETHICS SPECIALISTS SAY THE PROPOSED LAW IS UNIQUE BECAUSE ONLY TEXAS APPEARS TO HAVE A PROVISION ON ITS BOOKS BARRING LAWYERS FROM SOLICITING CLIENTS LAWYERS IN VIRTUALLY ALL STATES INCLUDING TEXAS ARE PROHIBITED BY LEGAL ETHICS RULES FROM SOLICITING CLIENTS IN PERSON OR BY PHONE ACCORDING TO THE AMERICAN BAR ASSOCIATION BUT THE DRAFTING AND POLICING OF ETHICS RULES HAS GENERALLY BEEN LEFT TO STATE BAR ASSOCIATIONS WITH COMPLAINTS USUALLY TAKEN TO THE STATE SUPREME COURTS FOR FINAL DISPOSITION MOST EVERYWHERE THE LEGAL PROFESSION HAS RESISTED ANY CHANGE IN THIS SYSTEM OF SELFREGULATION INDEED WHEN MR WOLENS PROPOSED A BILL FOUR YEARS AGO THAT WOULD HAVE MADE IT A FELONY FOR LAWYERS TO POSE AS PRIESTS OR TO SOLICIT BUSINESS AT FUNERALS AND CEMETERIES STATE BAR GROUPS MOUNTED FURIOUS OPPOSITION AND SUCCEEDED IN REDUCING THE PROPOSED PENALTIES TO A MISDEMEANOR BUT THIS TIME THE STATE'S BIGGEST LEGAL GROUPS INCLUDING THE TEXAS BAR ASSOCIATION ARE LINING UP TO SUPPORT MR WOLENS OPPOSITION TO THE SOLICITATION BAN IS COMING LARGELY FROM INDIVIDUAL PLAINTIFFS LAWYERS WHO SAY IT WOULD LEAVE ACCIDENT VICTIMS VULNERABLE TO AGGRESSIVE INSURANCE CLAIMS ADJUSTERS AND WORK UNFAIRLY AGAINST PEOPLE WHO DON'T FULLY UNDERSTAND THEIR RIGHTS THE RESTRICTION ON DIRECT MAILINGS ALSO IS OPPOSED BY INDIVIDUAL LAWYERS AND THE VARIOUS INDUSTRIES THAT WOULD BE AFFECTED THAT ASPECT OF THE BILL MAY BE MORE VULNERABLE TO A CONSTITUTIONAL FREESPEECH CHALLENGE COURTS GENERALLY HAVE RECOGNIZED THE UNFAIR INFLUENCE THAT A TRAINED ADVOCATE CAN WIELD ON A PROSPECTIVE CLIENT PARTICULARLY AT A TIME OF DISTRESS AND HAVE SUPPORTED BANS ON SOLICITATION DIRECT MAILINGS ON THE OTHER HAND HAVE BEEN VIEWED MORE PERMISSIVELY IN FLORIDA IN DECEMBER A FEDERAL JUDGE IN TAMPA THREW OUT ON FIRST AMENDMENT GROUNDS THAT STATE'S 30DAY RESTRICTION ON DIRECT MAILINGS BY LAWYERS TO ACCIDENT VICTIMS JUDGE ELIZABETH A KOVACHEVICH REASONED THAT A LETTER UNLIKE THE HOUNDING OF A PROSPECTIVE CLIENT BY A BADGERING ADVOCATE IS MORE CONDUCIVE TO MAKING AN INFORMED CHOICE SIX BLACK AGENTS OF THE SECRET SERVICE UNIFORMED DIVISION SUED THE TW SERVICES INC UNIT OF TW HOLDINGS INC ALLEGING THEY WERE DENIED SERVICE AT THE COMPANY'S DENNY'S RESTAURANT IN ANNAPOLIS MD LAST MONTH BECAUSE OF THEIR RACE THE AGENTS WERE IN UNIFORM AND HAD BEEN ON THEIR WAY TO GUARD PRESIDENT CLINTON WHEN THEY STOPPED AT THE DENNY'S RESTAURANT FOR BREAKFAST IN THE SUIT THEY SAID THEY WEREN'T SERVED AFTER WAITING FOR ABOUT 55 MINUTES DURING THE WAIT THE SUIT SAID OTHER WHITE SECRET SERVICE AGENTS WHO HAD ARRIVED WITH THE PLAINTIFFS WERE SERVED AND HAD FINISHED SECOND HELPINGS THE SUIT SAID OTHER WHITE PATRONS WHO ARRIVED AS MUCH AS A HALFHOUR AFTER THE PLAINTIFFS ALSO WERE SERVED THE SUIT FILED YESTERDAY IN FEDERAL DISTRICT COURT IN MARYLAND ALLEGED THAT DENNY'S REFUSED TO SERVE OR OTHERWISE DENIED PLAINTIFFS FOOD BECAUSE OF THEIR RACE THE PLAINTIFFS ASKED THE COURT FOR AN ORDER BARRING DENNY'S FROM FUTURE DISCRIMINATION AND FOR UNSPECIFIED MONEY DAMAGES DENNY'S SAID IT HAS FIRED THE MANAGER OF THE ANNAPOLIS RESTAURANT FOR FAILURE TO REPORT A COMPLAINT INVOLVING THE INCIDENT TO APPROPRIATE COMPANY OFFICIALS THE COMPANY SAID IN A STATEMENT WHILE INITIAL FINDINGS POINT TO A PROBLEM OF SLOW SERVICE AND NOT RACIAL BIAS THE COMPANY IS SEEKING AN INDEPENDENT THIRD PARTY SUCH AS A RESPECTED CIVILRIGHTS ORGANIZATION TO HELP INVESTIGATE THE INCIDENT ON APRIL 1 INVOLVING SIX SECRET SERVICE AGENTS THE COMPANY IS COMMITTED TO THE INVESTIGATION AND ELIMINATION OF ANY POSSIBLE RACIAL DISCRIMINATION THE SUIT IS THE THIRD LEGAL ACTION AGAINST DENNY'S TO SURFACE IN THE PAST TWO MONTHS OVER ALLEGED RACIAL DISCRIMINATION IN LATE MARCH THE JUSTICE DEPARTMENT SAID AN INVESTIGATION HAD SUBSTANTIATED SEVERAL DISCRIMINATORY ALLEGATIONS AGAINST DENNY'S IN ITS CALIFORNIA RESTAURANTS ON APRIL 1 A FEDERAL JUDGE IN SAN FRANCISCO APPROVED A CONSENT DECREE BETWEEN TW HOLDINGS AND THE GOVERNMENT IN WHICH DENNY'S AGREED TO BROAD CHANGES IN CUSTOMER RELATIONS ADVERTISING AND EMPLOYEE TRAINING IN THE CONSENT DECREE DENNY'S DIDN'T ADMIT WRONGDOING A SEPARATE CIVIL SUIT STEMMING FROM THE CALIFORNIA ALLEGATIONS BROUGHT IN FEDERAL COURT IN SAN JOSE IN LATE MARCH REQUESTS CLASSACTION STATUS TO REDRESS WHAT 32 BLACK PLAINTIFFS CLAIM IS A STATEWIDE PATTERN OF DISCRIMINATION AGAINST BLACK CUSTOMERS DENNY'S FILED A MOTION WEDNESDAY TO DISMISS THE CIVIL SUIT ON A TECHNICALITY THE COMPANY IS ARGUING THAT BECAUSE THE CONSENT DECREE IT SIGNED WITH THE JUSTICE DEPARTMENT PROVIDES FOR AN INJUNCTION BANNING DISCRIMINATORY PRACTICES THERE IS NO NEED FOR A PRIVATE SUIT TO ACCOMPLISH THE SAME GOAL TW HOLDINGS A SPARTANBURG SC FOODSERVICE COMPANY OPERATES MORE THAN 2400 RESTAURANTS AS WELL AS PROVIDING VENDING AND OTHER SERVICES OF THOSE RESTAURANTS ABOUT 1013 WERE DENNY'S RESTAURANTS AS OF THE BEGINNING OF THIS YEAR ADDITIONAL DENNY'S RESTAURANTS ARE OPERATED BY FRANCHISEES JOINING THE DEFENSE BAR FACING A LAWSUIT FILED ON BEHALF OF SHAREHOLDERS INTERNATIONAL BUSINESS MACHINES CORP HAS TURNED TO THE EXPERTS FOR SOME HELP LEADING PLAINTIFFS LAW FIRM MILBERG WEISS BERSHAD SPECTHRIE & LERACH IBM'S UNUSUAL CHOICE OF MILBERG WEISS AS OUTSIDE COUNSEL IS IN LARGE PART BECAUSE OF THE PLAINTIFFS FIRM'S RELATIONSHIP WITH VETERAN CORPORATE DEFENDERS CRAVATH SWAINE & MOORE CRAVATH HAS LONG BEEN IBM'S LEAD OUTSIDE COUNSEL AND THE NEW YORK LAW FIRM WILL BE COCOUNSEL WITH MILBERG WEISS IN FIGHTING THE SHAREHOLDER SUIT WHICH SEEKS CLASSACTION STATUS MELVYN WEISS THE SENIOR PARTNER AT MILBERG WEISS AND THOMAS BARR ONE OF CRAVATH'S TOP LITIGATORS HAVE WORKED TOGETHER IN TWO MAJOR CASES INCLUDING THE CIVIL LITIGATION AGAINST MICHAEL MILKEN THAT RESULTED IN A 13 BILLION SETTLEMENT BUT IN THOSE CASES IT WAS MR BARR WHO SWITCHED SIDES AND THE INSIDE JOKE WAS THAT MR WEISS WAS TURNING THE CRAVATH ATTORNEY INTO A PLAINTIFFS LAWYER THE IBM CASE IS A CHANCE FOR MR WEISS KNOWN FOR TAKING ON LARGE ACCOUNTING FIRMS AND CORPORATE BEHEMOTHS SUCH AS AMERICAN EXPRESS CO TO TRY OUT THE ROLE AS CORPORATE DEFENDER MR WEISS SAID THE IBM CASE MARKS THE FIRST TIME HE HAS DEFENDED A CORPORATION EXCEPT FOR THE FEW TIMES THAT HE HAS TAKEN A CASE ON BEHALF OF EXECUTIVES WHO WERE HIS FRIENDS SHYING AWAY FROM THE CRUSADING LANGUAGE THAT TYPIFIES HIS COMMENTS WHEN HE'S A PLAINTIFFS LAWYER MR WEISS ADDED THAT HIS WORK FOR IBM SHOULDN'T BE VIEWED AS UNUSUAL I'M JUST DOING THE JOB A LAWYER IS SUPPOSED TO DO IN REPRESENTING A CLIENT HE SAID THE SUIT ALLEGED THAT IBM MISLED INVESTORS ABOUT PLANS TO CUT ITS STOCK DIVIDEND LAST YEAR THE CASE IS PENDING IN FEDERAL COURT IN NEW YORK JOSEPH WEISS A NEW YORK PLAINTIFFS LAWYER WHO IS COLEAD COUNSEL BRINGING THE SHAREHOLDER'S SUIT SAID MELVYN WEISS'S DECISION TO TAKE THE CASE WAS A LITTLE BIT OF A SURPRISE BUT JOSEPH WEISS WHO IS NOT RELATED TO MELVYN WEISS SAID HE STILL EXPECTED CRAVATH TO DO MOST OF THE LITIGATING AND MILBERG WEISS TO BE MORE OF A CONSULTANT AS FOR MELVYN WEISS'S CHANCES AS A CORPORATE DEFENDER JOSEPH WEISS ADDED I THINK ONE OF THE WEISSES WILL WIN 9305250109 930525 AM INTERNATIONAL INC NEW YORK AM INTERNATIONAL INC IS BEING REMOVED FROM THE OFFICEEQUIPMENT INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY THE COMPANY IS REORGANIZING UNDER BANKRUPTCY LAW PROTECTION ITS STOCK WAS DELISTED YESTERDAY BY THE NEW YORK STOCK EXCHANGE 9305250108 930525 TECHNOLOGY UNIVERSITY PATENTS PARTNERSHIP WESTPORT CONN UNIVERSITY PATENTS INC SAID IT ESTABLISHED A PARTNERSHIP WITH INNOVATION PARTNERS INTERNATIONAL INC OF OSAKA JAPAN FOR MUTUAL TECHNOLOGY LICENSING UNDER THE AGREEMENT EACH PARTNER WILL HANDLE TECHNOLOGY COMMERCIALIZATION NEEDS IN ITS OWN COUNTRY INCLUDING PATENT LICENSING AND ENFORCEMENT AND NEW TECHNOLOGY DEVELOPMENT IPI IS A CONSULTING FIRM SPECIALIZING IN TECHNOLOGY TRANSFERS AND THE FORMATION OF JOINT VENTURES BETWEEN JAPANESE AND WESTERN FIRMS UNIVERSITY PARTNERS IS A TECHNOLOGY TRANSFER FIRM SPECIALIZING IN THE COMMERCIALIZATION OF UNIVERSITY RESEARCH 9305250107 930525 DIVIDEND NEWS MCI COMMUNICATIONS CORP MCI COMMUNICATIONS CORP WASHINGTON DECLARED A 2FOR1 STOCK SPLIT EFFECTIVE JULY 9 TO SHARES OF RECORD JUNE 11 THE LONGDISTANCE PHONE COMPANY CURRENTLY HAS ABOUT 262 MILLION SHARES OUTSTANDING 9305250106 930525 GLOBAL NATURAL RESOURCES PACT HOUSTON GLOBAL NATURAL RESOURCES INC SAID IT FORMED A JOINT VENTURE WITH A UNIT OF UNITED MERIDIAN CORP OF HOUSTON AND INTERNATIONAL FINANCE CORP OF WASHINGTON TO EXPLORE FOR OIL AND GAS OFFSHORE OF THE IVORY COAST IN WEST AFRICA THE AREA OF EXPLORATION INCLUDES BLOCK CI11 WHERE TWO WELLS WERE DRILLED IN THE 1980S THAT FLOWED OIL AND GAS AT COMMERCIAL RATES THE COMPANY UNDER THE JOINT AGREEMENT PLANS TO DRILL MORE WELLS IN THE AREA THE FIRST WELL IS SCHEDULED TO BE DRILLED THE LAST QUARTER OF 1993 THE EXPLORATION AGREEMENT IS SUBJECT TO APPROVAL BY THE IVORY COAST GOVERNMENT 9305250105 930525 TSENG LABS PLANS REPURCHASE NEWTOWN PENN TSENG LABS INC SAID ITS DIRECTORS AUTHORIZED REPURCHASE OF UP TO ONE MILLION COMMON SHARES OVER THE NEXT 24 MONTHS AS OF MARCH 31 THE MANUFACTURER OF GRAPHICS CHIPS AND PERSONALCOMPUTER PRODUCTS HAD 194 MILLION SHARES OUTSTANDING IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TSENG WAS QUOTED AT 13125 DOWN 1625 9305250104 930525 BTR NYLEX'S CHINESE VENTURES MELBOURNE BTR NYLEX LTD AN AUSTRALIAN MANUFACTURING AND PACKAGING CONCERN SAID IT WILL FORM TWO JOINT VENTURES WITH REGIONAL CHINESE AUTHORITIES TO ACQUIRE GLASSCONTAINER PLANTS IN GUANGZHOU AND SHANGHAI BTR NYLEX WHICH IS 61 OWNED BY BTR PLC OF BRITAIN SAID THE TWO COMPANIES WILL INVEST 270 MILLION AUSTRALIAN DOLLARS US1877 MILLION TO ACQUIRE AND EXPAND THE TWO PLANTS THE AUSTRALIAN COMPANY WILL HOLD A 70 STAKE IN EACH VENTURE THE MUNICIPAL GOVERNMENTS OF GUANGZHOU AND SHANGHAI WILL HOLD THE REMAINING 30 BTR SAID IT HOPES TO DOUBLE GLASSBOTTLE PRODUCTION AT THE PLANTS WITHIN TWO YEARS BY INSTALLING NEW GLASSMELTING FURNACES 9305250103 930525 CORRECTION THE MAY 11 LEISURE & ARTS PAGE ARTICLE BOB HOPE STILL A TROUPER AT AGE 90 MISSTATED THE TITLE OF A BOOK AND THE AUTHOR'S NAME IT SHOULD HAVE READ THE GREAT BOOM AHEAD BY HARRY S DENT JR 9305250102 930525 EUROPE IS GIVEN TASTE OF NESTEA TAMPA FLA COCACOLA NESTLE REFRESHMENTS CO SAID IT HAS ENTERED THE EUROPEAN MARKET WITH ITS NESTEA ICEDTEA DRINK IN SPAIN BELGIUM GERMANY AND ITALY FORMED IN 1991 THE COMPANY A JOINT VENTURE OF COCACOLA CO AND NESTLE SA ALREADY SELLS TEA AND COFFEE PRODUCTS IN THE US CANADA TAIWAN AND KOREA THE NESTEA PRODUCT A READYTODRINK BEVERAGE IS BEING PRODUCED AND DISTRIBUTED BY COCACOLA BOTTLERS THROUGHOUT THE EUROPEAN COUNTRIES 9305250101 930525 PULSE ENGINEERING INC SHARES SAN DIEGO PULSE ENGINEERING INC SAID DIRECTORS DOUBLED A STOCK REPURCHASE PLAN TO ONE MILLION CLASS A COMMON SHARES THE MAKER OF ELECTRONIC PARTS AND SUBSYSTEMS SAID ITS DIRECTORS DOUBLED A 1991 AUTHORIZATION TO BUY BACK 500000 SHARES ABOUT 300000 SHARES HAVE ALREADY BEEN BOUGHT UNDER THAT EARLIER AUTHORIZATION THE COMPANY SAID PULSE ENGINEERING CURRENTLY HAS ABOUT 58 MILLION SHARES OUTSTANDING ON A PRIMARY BASIS OR ABOUT 66 MILLION SHARES FULLY DILUTED YESTERDAY PULSE GAINED 25 CENTS TO 7 IN OVERTHECOUNTER TRADING 9305250100 930525 LETTERS TO THE EDITOR THE DREADED PLAGIARISM WORD' IN THE COURSE OF HIS UNFRIENDLY OPINION PIECE ON WALTER STEWART AND NED FEDER THE NEW INQUISITORS EDITORIAL PAGE APRIL 26 BERNARD DAVIS PERHAPS OUT OF IGNORANCE MAKES SOME POINTS ABOUT THE STEPHEN OATES PLAGIARISM CASE THAT ARE MISLEADING I WAS THE CRITIC WHO FIRST DOCUMENTED MR OATES'S UNATTRIBUTED BORROWINGS IN HIS LINCOLN BIOGRAPHY FROM BENJAMIN THOMAS'S EARLIER ABRAHAM LINCOLN AND I HAVE FOLLOWED THE CONTROVERSY CLOSELY EVER SINCE TO CLARIFY AND CORRECT WHAT DR DAVIS WRITES THIS CHARGE OF PLAGIARISM HAD BEEN RAISED EARLIER AGAINST PROF OATES AND HAD BEEN REJECTED BY COMMITTEES OF HIS PEERS I KNOW OF ONLY ONE COMMITTEE OF HIS PEERS THAT HAS DECLARED ITSELF PUBLICLY ON THE OATES MATTER A GROUP OF 23 PEOPLE MOST OF THEM PROFESSORS OF 19THCENTURY AMERICAN HISTORY AND A FEW PREEMINENT IN THE STUDY OF THE CIVIL WAR PERIOD BUT THESE PEERS FAR FROM SITTING IN SOLEMN PROFESSIONAL CONCLAVE WERE RECRUITED BY A PUBLIC RELATIONS FIRM RETAINED BY MR OATES THEY NEVER MET NEVER DELIBERATED AND SOME OF THEM TO MY PERSONAL KNOWLEDGE DID NOT EVEN READ THE DOCUMENTS IN QUESTION BEFORE ALLOWING THEIR NAMES TO BE USED IN AN APRIL 29 1991 PRESS RELEASE THAT CONCLUDED THE UNDERSIGNED HISTORIANS HAVE EXAMINED THIS ISSUE AND REJECT THE COMPLAINT AGAINST PROFESSOR OATES AS GROUNDLESS IRONICALLY SINCE THE STATEMENT APPEARED SEVERAL OF ITS MOST DISTINGUISHED SIGNERS RECOGNIZING THAT THEY HAD RUSHED TO JUDGMENT HAVE STUDIED THE EVIDENCE MORE CLOSELY AND CONSEQUENTLY CHANGED THEIR MINDS THEY ARE NOW CONVINCED THAT MR OATES DID IN FACT PLAGIARIZE MR THOMAS THIS IS A PLAIN ENOUGH JUDGMENT YET BECAUSE IT DOES NOT CONTAIN THE DREADED P WORD IT IS UNSATISFACTORY TO A SCHOLARLY COMMUNITY WISHING TO UNDERSTAND JUST WHAT PLAGIARISM IS IF NOT DERIVATIVE TO AN EXTENT REQUIRING GREATER ACKNOWLEDGEMENT THEN WHAT WITH THE PROBLEM OF DEFINITION IN MIND MESSRS STEWART AND FEDER NOW WANT THE AHA TO REOPEN THE OATES CASE AND HAVE PLACED NEW FORMAL CHARGES OF PLAGIARISM WITH THE ASSOCIATION THEY HAVE SUBMITTED AS EVIDENCE A LARGE NUMBER OF INSTANCES OF POSSIBLE PLAGIARISM DETECTED IN SOME OF MR OATES'S OTHER BOOKS PARTICULARLY THE BIOGRAPHIES OF MARTIN LUTHER KING JR AND WILLIAM FAULKNER EVIDENCE GENERATED BY THEIR COMPUTER PROGRAM POPULARLY CALLED THE PLAGIARISM MACHINE THIS THEY BELIEVE THEY ARE PROFESSIONALLY OBLIGATED TO DO AND I THINK THAT MANY SCHOLARS SCIENTISTS AND HUMANISTS ALIKE WILL AGREE WITH THEM WHAT MESSRS STEWART AND FEDER DO FOR A LIVING AND WHAT THEIR EMPLOYERS THE NATIONAL INSTITUTES OF HEALTH ARE TRYING TO PUNISH THEM FOR IS VITALLY IMPORTANT TO RESEARCH AND EMPHATICALLY IN THE PUBLIC INTEREST IN THE OATES CASE THEIR FINDINGS HARDLY CONSTITUTE PERSECUTION AS DR DAVIS TAKING THE INSTITUTIONAL AND BUREAUCRATIC VIEW WOULD HAVE IT PART OF THE PUBLISHED PROFESSIONAL WORK OF STEPHEN OATES HAS HAD AN INQUIRY THE RESULTS OF WHICH POINT TO PLAGIARISM AND MAY SOON HAVE ANOTHER BUT MR OATES HIMSELF HAS NOT BEEN SUBJECTED TO AN INQUISITION 9305250099 930525 REVIEW & OUTLOOK EDITORIAL PENN PACKS IT IN IN AN ABRUPT ABOUTFACE YESTERDAY THE UNIVERSITY OF PENNSYLVANIA'S BY NOW WORLD FAMOUS WATER BUFFALO PROSECUTION CLATTERED TO AN END BUT ITS MEMORY AND THE INVALUABLE LESSONS IT BROADCAST WILL LINGER ON SHORTLY BEFORE NOON THE PENN ADMINISTRATION ISSUED A STATEMENT FIRMLY DECLARING THAT THE UNIVERSITY INTENDED TO PROCEED WITH THE RACIAL HARASSMENT CASE AGAINST FRESHMEN EDEN JACOBOWITZ FOR CALLING SOME NOISY BLACK SORORITY WOMEN WATER BUFFALO A FEW HOURS LATER THE FIVE WOMEN COMPLAINANTS IN THE CASE ISSUED A STATEMENT DECLARING THAT THEY WERE DROPPING THE CHARGES THE WOMEN CONTENDED THAT SINCE THE MEDIA COVERAGE WAS SLANTED IN FAVOR OF THE ACCUSED THEY HAD BEEN DEPRIVED OF THEIR RIGHT TO AN IMPARTIAL PANEL THEY CLAIMED FURTHER THAT THEY HAD BEEN VICTIMIZED BY AGENTS OF THE UNIVERSITY AS WELL AS ITS JUDICIAL PROCESS IMMEDIATELY THEREAFTER PENN PRESIDENT SHELDON HACKNEY RESPONDED WITH A STATEMENT ATTESTING THAT THE JACOBOWITZ CASE HAS BEEN A PAINFUL EXPERIENCE FOR EVERYONE INVOLVED IN IT AND FOR THE UNIVERSITY AS A WHOLE PAINFUL NO DOUBT BUT ALSO EXTRAORDINARILY INSTRUCTIVE IT REVEALED WHAT THE DESCENT OF AMERICA'S CAMPUSES INTO THE MIRE OF SPEECH CODES AND HARASSMENT CODES HAS WROUGHT WHAT THEY HAVE WROUGHT NAMELY IS AN ASSAULT ON FREE EXPRESSION AND REASON THAT IS VIRTUALLY WITHOUT PRECEDENT IN A MODERN FREE SOCIETY INTRODUCED ALLEGEDLY AS AN ATTEMPT TO ADDRESS GROUP TENSIONS THEY HAVE SUCCEEDED ONLY IN INFLAMING THEM THE UNIVERSITY ADMINISTRATORS SUCH AS PENN PRESIDENT SHELDON MR HACKNEY WHO NURTURE THE MAINTENANCE OF SPEECH CODES AND THE KIND OF ORWELLIAN LEGAL MACHINERY WE SAW IN OPERATION AGAINST MR JACOBOWITZ CAN TAKE SUBSTANTIAL CREDIT FOR THE FACT THAT THERE IS TODAY MORE RACIAL AND GROUP ANIMOSITY ON THE CAMPUSES THAN AT ANY OTHER TIME IN RECENT HISTORY UNIVERSITY AGENTS LIKE PENN JUDICIAL INQUIRY OFFICER ROBIN READ WHO RAN WITH THE HARASSMENT CASE AND WHO ASKED MR JACOBOWITZ IF HE HAD BEEN THINKING RACIAL THOUGHTS ON THE NIGHT HIS SUPPOSED OFFENSE TOOK PLACE CAN TAKE SIMILAR CREDIT THE UNHAPPY FACT IS THAT MS READ'S COUNTERPARTS CAN BE FOUND ON COLLEGES ACROSS THE COUNTRYHIGHMINDED THOUGHT AND SPEECH CONTROLLERS DETERMINED TO ENFORCE THE CELEBRATION OF OUR DIVERSITY AS PENN'S RECENT COMMENCEMENT SPEAKER PUT IT SO CAN THE COUNTLESS OTHER CASES OF STUDENTS AND FACULTY MEMBERS BEING VICTIMIZED BY THE BIZARRE NEW STANDARDS FOR ACCEPTABLE SPEECH AND BEHAVIOR NOW PREVALENT IN THE ACADEMY THE PRESS DID INDEED MAKE THE DIFFERENCE IN THIS CASE FIRST REPORTED BY THE FORWARD NEWSPAPER IN NEW YORK CITY AS IT SHOWED WITH UNSPARING CLARITY THE ABSURDITY OF THE CHARGES AGAINST MR JACOBOWITZ HOW MANY OTHER CASES OF THE KIND THAT GO ON UNHERALDED AND UNPUBLICIZED AT US COLLEGES AND UNIVERSITIES IS WHAT SHOULD GIVE US PAUSE 9305250098 930525 REVIEW & OUTLOOK EDITORIAL ASIDES THE WONDER YEARS THE 350 DUCKS ON THE CANALS IN LA'S VENICE DISTRICT ARE INFECTED WITH A FATAL VIRUS AND WILDLIFE OFFICIALS TRIED ON MONDAY TO ROUND THEM UP BEFORE THEY SPREAD THE PLAGUE TO THE 28 MILLION WATERFOWL THAT FLY THE COASTAL ROUTE A GROUP OF RESIDENTS INCLUDING ACTRESS ALLEY MILLS MOM ON THE WONDER YEARS SCRAMBLED TO BLOCK THE OPERATION LITERALLY AND A TRIAL COURT JUDGE BACKED THEM UP IN ONE OF THE CITY'S MOST CRIMEPRONE AREAS THE ONLY EFFECTIVE MOVEMENT OF THE 1990S IS QUACKTIVISM 9305250097 930525 LIFE RE TO INVEST IN MERGER STAMFORD CONN LIFE RE CORP A REINSURANCE COMPANY SAID IT PLANS TO INVEST ABOUT 10 MILLION IN PREFERRED STOCK AND COMMON STOCK WARRANTS IN A COMPANY TO BE CREATED BY THE PENDING MERGER OF NACOLAH HOLDING CORP AND A UNIT OF NHC ACQUISITION CORP LIFE RE SAID IT EXPECTS TO RECEIVE WARRANTS TO BUY A STAKE IN THE POSTMERGER INSURANCE COMPANY OF ABOUT 15 ON A FULLY DILUTED BASIS NACOLAH IS A HOLDING COMPANY FOR NORTH AMERICAN CO FOR LIFE & HEALTH INSURANCE BASED IN CHICAGO AND THREE OTHER LIFE INSURANCE COMPANIES 9305250096 930525 REVIEW & OUTLOOK EDITORIAL ASIDES FRANK FARCE BILL CLINTON WANTS TO PERFECT AMERICAN DEMOCRACY BY BRINGING IN TAXPAYER FUNDING OF CONGRESSIONAL RACES BUT EVERYBODY KNOWS THAT THE THING EATING AWAY AT REAL DEMOCRACY IS THE SET OF PRIVILEGES THAT LET CONGRESSIONAL TYPES LEVERAGE INCUMBENCY INTO A LIFETIME SINECURE ONE OF THESE PRIVILEGES IS THE POSTAL FRANK ENABLING THEM TO BLANKET THEIR DISTRICTS WITH SELFPROMOTING BUMF WHAT DOES MR CLINTON PROPOSE A GIANT BOOST IN THE CONGRESSIONAL POSTAL ALLOWANCE HIS BUDGET WOULD GIVE THE SENATE AN EXTRA 16 MILLION FOR PROMOTIONAL MAILINGS NEXT YEAR AN 80 INCREASE THE HOUSE WOULD GET AN ADDITIONAL 24 MILLION UP 50 THIS TOO WE GUESS IS REINVENTING GOVERNMENT 9305250095 930525 OTC FOCUS NASDAQ SHARES POST ONLY SMALL GAIN DESPITE DROP IN TREASURY BOND YIELD BY THOMAS E WEBER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET SETTLED NEAR NEUTRAL TERRITORY AFTER INVESTORS FAILED TO SUSTAIN MODEST GAINS EARLIER IN THE SESSION NASDAQ STOCKS SPENT MUCH OF THE DAY CLIMBING FROM EARLYMORNING LOWS BUT STUMBLED IN MIDAFTERNOON EVEN AS THE 30YEAR TREASURY BOND YIELD DROPPED BELOW 7 THE NASDAQ COMPOSITE INDEX FINISHED JUST 040 POINT HIGHER AT 69469 AS ADVANCERS NARROWLY EDGED DECLINERS 1295 TO 1287 ON FRIDAY THE INDEX FELL 314 POINTS NASDAQ NATIONAL MARKET SYSTEM VOLUME WAS 1684 MILLION SHARES OFF FROM FRIDAY'S 2278 MILLION BIG BOARD STOCKS WERE MORE ENCOURAGED BY THE SINKING YIELD ON THE LONG BOND THE DOW JONES INDUSTRIAL AVERAGE SWELLED 1495 POINTS TO 350778 GAINING BACK NEARLY HALF OF FRIDAY'S 30POINT SELLOFF THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 080 POINT TO 24707 BUT DECLINING STOCKS EXCEEDED ADVANCERS 992 TO 950 TRADERS SAID PROFITTAKING INTERRUPTED THE OTC MARKET'S RECOVERY THE NASDAQ COMPOSITE REACHED AS HIGH AS 69652 DURING THE AFTERNOON AS THE LONG BOND'S YIELD FELL BUT INSTITUTIONAL INVESTORS WEREN'T WILLING TO TAKE A STAND IN EITHER DIRECTION AMID CONCERN ABOUT INFLATION I THINK EVERYBODY'S STILL SITTING ON THEIR HANDS THEY'RE CONFUSED SAID ROBERT O'TOOLE SR HEAD OF NASDAQ INSTITUTIONAL SALES AT LEHMAN BROTHERS THE NASDAQ COMPOSITE INDEX'S ADVANCE REPRESENTED A GAIN OF JUST 006 TRADERS SAID INVESTORS APPEAR TO BE WAITING FOR A CLEAR DIRECTION TO THE MARKET BEFORE COMMITTING FRESH FUNDS ADDING TO THE LETHARGY IS SLUGGISH TRADING AHEAD OF NEXT WEEKEND'S MEMORIAL DAY HOLIDAY THE MARKET AS A WHOLE DID NOT FOLLOW THROUGH WITH THE BOND MARKET RALLY SAID LARRY KINNEY MANAGER OF OTC TRADING AT SOUNDVIEW FINANCIAL GROUP IT'S BEEN A VERY SLOW DAY ALL AROUND MR KINNEY SAID THE MARKET MAY TAKE DIRECTION FROM ECONOMIC READINGS DUE TODAY INCLUDING THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX FOR MAY LEHMAN'S MR O'TOOLE NOTED THAT MAJOR TECHNOLOGY ISSUES WERE ACTIVE BUT ADDED THAT A LACK OF SIGNIFICANT MOVEMENT AMONG THE STOCKS MEANT THE SECTOR WAS UNABLE TO CHART A COURSE FOR THE BROAD OTC MARKET AMONG THE NASDAQ MOST ACTIVES APPLE COMPUTER EDGED UP 1/8 TO 57 5/8 INTEL FINISHED 1/4 HIGHER AT 104 MICROSOFT WAS DOWN 3/8 TO 92 1/8 AND NOVELL ENDED UNCHANGED AT 31 3/4 COMMUNICATIONS COMPANIES PROVIDED SOME ANEMIC UPWARD MOMENTUM AMONG ACTIVE STOCKS MCI COMMUNICATIONS THE WASHINGTON DCBASED LONGDISTANCE COMPANY ROSE 1/4 TO 51 1/4 AFTER ANNOUNCING A 2FOR1 STOCK SPLIT CLASS A SHARES OF TELECOMMUNICATIONS A CABLE TELEVISION OPERATOR GAINED 1 1/4 TO 21 7/8 MARKET PLAYERS SAID THE COMPANY WAS BENEFITING FROM TALK THAT AN ALLIANCE BETWEEN TIME WARNER AND U S WEST WILL PROMPT OTHER LINKUPS BETWEEN CABLE TV AND TELECOMMUNICATIONS COMPANIES OTHER CABLE STOCKS ALSO GAINED CLASS A SHARES OF JONES INTERCABLE ENDED AT 13 3/4 UP 1 1/2 COMCAST'S CLASS A SHARES CLOSED UP 7/8 AT 20 1/2 DSC COMMUNICATIONS CONTINUED BUILDING ON LAST WEEK'S GAINS JUMPING 2 1/4 TO 43 3/8 THE STOCK SURGED 4 1/4 LAST WEEK AFTER ANNOUNCING A FIVEYEAR SUPPLY CONTRACT WITH THE PACIFIC BELL UNIT OF PACIFIC TELESIS PLANO TEXASBASED DSC WILL PROVIDE PACIFIC BELL WITH DIGITAL TELECOMMUNICATIONS EQUIPMENT TECHNOLOGY STOCKS PROVIDED SOME OF THE DAY'S NOTABLE LOSERS TSENG LABS A COMPUTER GRAPHICS CHIP MANUFACTURER BASED IN NEWTON PA PLUNGED 1 3/4 TO 13 THE COMPANY ANNOUNCED AFTER THE MARKET CLOSE ON FRIDAY THAT SECONDQUARTER EARNINGS WOULD BE MODERATELY BELOW THE FIRST QUARTER'S 22 CENTS A SHARE ANALYSTS HAD BEEN LOOKING FOR AN IMPROVEMENT FROM THE FIRST QUARTER TSENG SAID YESTERDAY THAT IT WOULD REPURCHASE AS MANY AS ONE MILLION COMMON SHARES BUT NEWS OF THE BUYBACK FAILED TO REVERSE THE STOCK'S SLIDE BIOTECHNOLOGY CONCERN AMGEN TUMBLED 2 TO 36 HAMBRECHT & QUIST ADVISED CLIENTS TO BEGIN SELLING SHARES OF THE THOUSAND OAKS CALIF COMPANY BECAUSE OF CONCERN ABOUT NEARTERM GROWTH PROSPECTS FOR AMGEN'S FLAGSHIP NEUPOGEN PRODUCT NEUPOGEN A WHITE BLOOD CELL STIMULANT IS INTENDED FOR USE IN CHEMOTHERAPY TREATMENTS SHARES OF SPECTRUM INFORMATION TECHNOLOGIES SAW HEAVY VOLUME ONCE AGAIN THE COMPANY WHICH HAS HEADQUARTERS IN MANHASSET NY GRABBED THE SPOTLIGHT EARLIER THIS MONTH AFTER UNVEILING A LICENSE AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH LAST WEEK THE STOCK ROCKETED AS HIGH AS 13 1/8 BEFORE SKEPTICISM ABOUT THE VALUE OF THE CONTRACT KNOCKED IT BACK DOWN SPECTRUM GAINED 1/8 YESTERDAY TO 6 ON 46 MILLION SHARES STEWART & STEVENSON SERVICES DROPPED 1 3/4 TO 40 DEAN WITTER REYNOLDS CUT ITS INVESTMENT RATING OF THE STOCK TO NEUTRAL FROM ACCUMULATE BASED ON THE STOCK'S RECENT HIGH PRICES STEWART & STEVENSON A HOUSTON MAKER OF DIESEL AND GAS TURBINEPOWERED EQUIPMENT REACHED A 52WEEK HIGH OF 42 1/8 ON FRIDAY DISAPPOINTING FISCAL FIRSTQUARTER EARNINGS SENT JACOBSON STORES 1/2 LOWER TO 13 THE JACKSON MICH RETAILER POSTED EARNINGS OF SEVEN CENTS A SHARE FOR THE FIRST QUARTER ENDED MAY 1 DOWN FROM 23 CENTS A YEAR AGO THE AVERAGE ESTIMATE OF THREE ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD PUT THE EARNINGS AT 18 CENTS A SHARE JACOBSON FELL AS LOW AS 11 3/4 BEFORE RECOVERING SOME GROUND 9305250094 930525 HARNISCHFEGER WINS DAMAGES MILWAUKEE THE PAPERMAKING MACHINERY UNIT OF HARNISCHFEGER INDUSTRIES INC WAS AWARDED 172 MILLION IN DAMAGES BY A FEDERAL JURY IN A PATENT INFRINGEMENT TRIAL AGAINST GERMAN MANUFACTURER JM VOITH GMBH AND ITS VOITH INC SUBSIDIARY THE JURY WHICH RETURNED THE VERDICT FRIDAY IN FEDERAL COURT IN MADISON WIS FOUND THAT VOITH HAD INFRINGED ON PAPER DRYING TECHNOLOGY PATENTS HELD BY HARNISCHFEGER'S BELOIT CORP PAPERMAKING MACHINERY UNIT 9305250093 930525 S&P INDEX TO DROP IMMUNEX NEW YORK IMMUNEX CORP WILL BE REMOVED FROM STANDARD & POOR'S CORP MIDCAP 400 INDEX AND REPLACED BY EL PASO NATURAL GAS CO A 1992 SPINOFF OF BURLINGTON RESOURCES INC THE COMPANY CHANGE IS CONTINGENT UPON APPROVAL BY IMMUNEX SHAREHOLDERS OF THE PROPOSED MERGER OF IMMUNEX WITH LEDERLE ONCOLOGY CORP A UNIT OF AMERICAN CYANAMID CO A SHAREHOLDER VOTE IS SCHEDULED FOR JUNE 1 IMMUNEX IS A SEATTLE BIOPHARMACEUTICAL FIRM INVOLVED IN THE DISCOVERY DEVELOPMENT MANUFACTURE AND MARKETING OF PRODUCTS TO TREAT CANCER AND AUTOIMMUNE DISEASE EL PASO NATURAL GAS EL PASO TEXAS OPERATES A 20000MILE NATURAL GAS PIPELINE SYSTEM IN THE SOUTHWEST 9305250092 930525 REVIEW & OUTLOOK EDITORIAL MANAGED FOOLISHNESS PRESIDENT CLINTON'S WHITE HOUSE IS HAVING A LOT OF TROUBLE MANAGING THINGS APPOINTMENTS TO TOP GOVERNMENT POSTS RELATIONS WITH THE PRESS FIRST FAMILY HAIRCUT SCHEDULES THE VOTES OF DEMOCRATS IN CONGRESS BUT IT HAS NO DOUBT THAT IT CAN MANAGE A SET OF FORCES THAT ARE INFINITELY MORE COMPLEX THE BILLIONS OF TRANSACTIONS THAT MAKE UP TRADE EXCHANGES BETWEEN THE US AND OTHER LARGE NATIONS IN PARTICULAR JAPAN THE CLINTONITES ARE OF COURSE WRONG OR AT LEAST WRONG IN THE IMPLIED ASSUMPTION THAT THEIR EFFORTS WILL SOMEHOW WORK TO THE ADVANTAGE OF THE US MANAGED TRADE AS THE CLINTONITES CALL IT IS A SILLY CONCEPT SOMEWHAT ON A LEVEL WITH THE OLD BOLSHEVIK IDEA THAT A NATIONAL ECONOMY COULD BE MANAGED MERELY BY ASSIGNING TO FACTORIES AND FARMS CAREFULLY CALCULATED PRODUCTION QUOTAS THE MORE THE CLINTONITES CHOOSE TO PROMOTE IT THE GREATER EFFORTS ITS TRADING PARTNERS WILL MAKE TO DISCREDIT US TRADE POLICY AND NOT TO MENTION US ECONOMIC AND POLITICAL LEADERSHIP JAPAN THE MAIN TARGET OF THE WANNABE WHITE HOUSE TRADE MANAGERS ALREADY HAS SUCH AN EFFORT UNDER WAY IT HAS OVERCOME ITS TRADITIONAL FEAR OF PROVOKING THE BIG NATION THAT PROVIDES IT WITH BOTH A LARGE MARKET AND IN THEORY AT LEAST A NUCLEAR SHIELD AGAINST ITS ENEMIES WITH THE SOVIET DEMISE HAVING DIMINISHED THE NUCLEAR THREAT OR SO IT IS WIDELY BELIEVED AND GREAT NEW BUSINESS OPPORTUNITIES OPENING IN CHINA AND OTHER PARTS OF ASIA JAPAN FEELS LESS CONSTRAINED BY ITS TRADITIONAL FEARS INDEED IT FEELS SO MUCH CONFIDENCE IN THE INTELLECTUAL RIGHTNESS OF ITS OPPOSITION TO MANAGED TRADE THAT IT IS UNDERTAKING TO INTERNATIONALIZE THE ISSUE JAPAN PLANS TO TRY TO WIN BACKING FOR ITS OBJECTIONS TO MANAGED TRADE AT A MEETING OF THE 24NATION ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT OECD NEXT MONTH IT MAY ALSO TRY TO TURN THE TOKYO SUMMIT OF THE WORLD'S SEVEN LARGEST G7 INDUSTRIAL NATIONS INTO A FORUM ON US TRADE POLICY IT IS BY NO MEANS CERTAIN THAT JAPAN CAN ENLIST EUROPE IN THIS FIGHT SINCE THE EUROPEAN COMMUNITY HAS CERTAIN TRADE MANAGEMENT IDEAS OF ITS OWN EVEN THOUGH ITS TRADE WITH JAPAN HAS BEEN GROWING BRISKLY BUT EUROPE WHILE IT MAY NOT WANT TO TAKE A SPECIFIC LINE AGAINST TRADE MANAGEMENT WILL PROBABLY HAVE LITTLE RELUCTANCE TO TAKE WHATEVER SWATS IT CAN AGAINST THE NOISOME TRADE MANAGERS IN WASHINGTON EFFORTS IN THAT DIRECTION ALSO SEEM TO BE WINNING SOME FAVOR WITH THE WORLD'S CHIEF TRADE REFEREE GENERAL DIRECTOR ARTHUR DUNKEL OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE GATT HE TOOK AN INDIRECT SHOT AT THE CLINTONITES HIMSELF DURING A VISIT TO SEOUL OVER THE WEEKEND ACCORDING TO A REUTER DISPATCH HE CHARACTERIZED STRONGARM TRADE TACTICS BY BIG COUNTRIES AS A THREAT TO THE GATT'S MULTILATERAL TRADE ARRANGEMENTS WHILE HE NAMED NO NAMES THERE SEEMED TO BE LITTLE DOUBT THAT HE WAS TALKING ABOUT THE US INDEED HE COULD HARDLY HAVE HAD ANYONE ELSE IN MIND WHEN HE DEPLORED ATTEMPTS TO IMPOSE DOMESTIC ENVIRONMENTAL OR LABOR STANDARDS ON OTHER COUNTRIES THROUGH TRADE MEASURES THAT IS EXACTLY WHAT THE US IS TRYING TO DO IN THE SUPPLEMENTAL PROVISIONS IT IS NEGOTIATING WITH MEXICO AND CANADA AS CONDITIONS FOR US APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT NAFTA HE PERHAPS WAS REACTING AS WELL TO A REPORT IN THE WALL STREET JOURNAL LAST WEEK THAT THE CLINTONITES HAVE BEGUN TO CODIFY THEIR MANAGED TRADE POLICY TOWARD JAPAN WITH A VIEW TOWARD SHRINKING THE JAPANESE TRADE SURPLUS THAT TROUBLES THEM SO MUCH ACCORDING TO THE JOURNAL ARTICLE THE EVOLVING PLAN WOULD DIVIDE US INDUSTRIES AND TRADE PRACTICES INTO FIVE BASKETS GOVERNMENT PROCUREMENT COMPLIANCE WITH PAST AGREEMENTS REGULATORY MATTERS AUTO PARTS AND FOREIGN INVESTMENT IN JAPAN JAPAN HAS RESPONDED THAT THE FUNDAMENTAL GOAL OF THE US EFFORT TO SHRINK THE JAPAN TRADE SURPLUS IS AN ATTEMPT TO MAKE TRADE NEGOTIATIONS RESULTSORIENTED RATHER THAN RULESORIENTED THE JAPANESE POINT IS NOT AN INSIGNIFICANT ONE IN ESSENCE THEY ARE CHARGING THE US WITH DEPARTING FROM A RULE OF LAW IN TRADE RELATIONS AND ADOPTING IN ITS PLACE THE RULE OF THE JUNGLE WITH THE SPOILS GOING TO THE SIDE THAT DISPLAYS THE MOST MUSCLE NO DOUBT THIS IS AN EXAGGERATION OF THE US POSITION AND IT SHOULD BE KEPT IN MIND THAT BILL CLINTON HAS PAID LIP SERVICE AT LEAST TO A SUCCESSFUL COMPLETION OF THE GATT URUGUAY ROUND BUT THE GATT AND MANAGED TRADE ARE ESSENTIALLY INCOMPATIBLE THE ONLY RESULT THE GATT SEEKS IS TRADE EXPANSION THROUGH RULES THAT DISMANTLE BARRIERS IF THE CLINTONITES PERSIST IN TRADE MANAGEMENT THE MOST LIKELY RESULT IS A DIMINUTION OF TRADE AND FURTHER DAMAGE TO THE US AND WORLD ECONOMIES BEYOND WHAT THEY ALREADY ARE INFLICTING WITH OTHER MISGUIDED EFFORTS TO FIX THE US ECONOMY 9305250091 930525 LOUISIANAPACIFIC GETS HEFTY PENALTY IN CLEAN AIR CASE BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY IN THE SECONDLARGEST CIVIL PENALTY EVER OBTAINED UNDER FEDERAL ENVIRONMENTAL LAW WILL COLLECT 111 MILLION FROM LOUISIANAPACIFIC CORP AND ITS KIRBY FOREST INDUSTRIES INC SUBSIDIARY UNDER A FEDERAL CONSENT DECREE ANNOUNCED BY EPA ADMINISTRATOR CAROL BROWNER AND ATTORNEY GENERAL JANET RENO LOUISIANAPACIFIC ALSO WILL SPEND 70 MILLION TO INSTALL POLLUTIONCONTROL EQUIPMENT AT 11 PLANTS AROUND THE COUNTRY MS BROWNER SAID LOUISIANAPACIFIC BASED IN PORTLAND ORE TRIED TO AVOID THEIR OBLIGATION UNDER FEDERAL LAW TO APPLY FOR GOVERNMENT PERMITS BASED ON FULL ACCURATE DISCLOSURE OF EXACTLY WHAT POLLUTANTS THEY WERE RELEASING SHE ADDED NOW THEY'RE PAYING FOR IT THE EPA SAID LOUISIANAPACIFIC WHICH MANUFACTURES WOOD PANELING VIOLATED THE CLEAN AIR ACT BY FAILING TO OBTAIN PERMITS FOR OR FULLY IDENTIFY EMISSIONS AT 14 PLANTS INCLUDING ONES IN MISSOULA MONT TWIN HARBORS MINN AND CORRIGAN TEXAS THE EPA SAID NEW INCINERATION TECHNOLOGY THAT THE COMPANY IS NOW REQUIRED TO INSTALL WOULD REDUCE EMISSIONS OF CARBON MONOXIDE VOLATILE ORGANIC COMPOUNDS AND OTHER POLLUTANTS MS BROWNER SAID THE PENALTY DEMONTRATES THAT THE CLINTON ADMINISTRATION WILL VIGOROUSLY ENFORCE OUR ENVIRONMENTAL LAWS WHEN ASKED WHY THE EPA AND THE JUSTICE DEPARTMENT DIDN'T SEEK CRIMINAL PROSECUTION OF THE INDIVIDUALS INVOLVED MS BROWNER SAID THE INVESTIGATION WAS BEGUN UNDER THE BUSH ADMINISTRATION ACCORDING TO THE JUSTICE DEPARTMENT CRIMINAL PENALTIES WEREN'T PURSUED BECAUSE THE COMPANY'S ACTIONS DIDN'T AT THE TIME CONSTITUTE A FELONY UNDER THE CLEAN AIR ACT FAILURE TO PROVIDE SUCH INFORMATION IS NOW A FELONY UNDER THE 1990 AMENDMENTS TO THE CLEAN AIR ACT BARRY LACTER A SPOKESMAN FOR LOUISIANAPACIFIC SAID THE COMPANY'S DECISION TO SETTLE THE MATTER DIDN'T CONSTITUTE AN ADMISSION OF GUILT IN A WRITTEN STATEMENT THE FIRM SAID THE SETTLEMENT WAS INTENDED TO AVOID LITIGATION AND RESOLVE THESE ISSUES THE ONLY EPA PENALTY THAT EXCEEDED THE LOUISIANAPACIFIC FINE OCCURRED IN 1987 WHEN THE EPA COLLECTED A 15 MILLION PENALTY FROM THE TEXAS EASTERN NATURAL GAS PIPELINE CO FOR VIOLATING FEDERAL TOXIC AND HAZARDOUS WASTE LAWS THE LOUISIANAPACIFIC FINE REPRESENTS THE SINGLE LARGEST PENALTY THE EPA HAS EVER COLLECTED UNDER THE CLEAN AIR ACT 9305250090 930525 WHAT'S NEXT STEVE JOBS'S VISION SO ON TARGET AT APPLE NOW IS FALLING SHORT HE STRUGGLES TO WIN A NICHE IN THE COMPUTER INDUSTRY AFTER A SERIES OF MISSTEPS DEEP FAITH IN HIS OWN GENIUS BY G PASCAL ZACHARU AND KEN YAMADA STAFF REPORTERS OF THE WALL STREET JOURNAL REDWOOD CITY CALIF STEVEN P JOBS HAS BEEN HAVING A TOUGH TIME IN FEBRUARY HIS COMPUTER COMPANY NEXT INC STOPPED MAKING COMPUTERS IN MARCH HIS PRESIDENT AND HIS CHIEF FINANCIAL OFFICER QUIT THEN SEVERAL BIG COMPUTER MAKERS SOME OF WHICH HE HAD HOPED WOULD USE HIS SOFTWARE FORMED A SOFTWARE ALLIANCE THAT EXCLUDED NEXT HOW IS MR JOBS TAKING ALL THIS THE LOSS OF HARDWARE BRIGHTENED NEXT'S FUTURE AND THE PAREDDOWN COMPANY NEEDED FEWER MANAGERS ANYWAY HE SAYS AND HE WROTE TO EMPLOYEES AFTER THE NEXTLESS ALLIANCE WAS REPORTED IN REALITY TODAY'S ANNOUNCEMENTS ARE A SERIOUS VICTORY FOR NEXT ALL THIS IS VINTAGE STEVE JOBS THE 38YEAROLD COFOUNDER OF APPLE COMPUTER INC IS A SPELLBINDING SPINNER OF VISIONS THE MOST FAMOUS BEING HIS ONCEUNCONVENTIONAL IDEAS THAT FORESAW THE PERSONALCOMPUTER REVOLUTION FOR YEARS HIS BIGGEST STRENGTH WAS HIS ABILITY TO MESMERIZE EVEN SAVVY PEOPLE WITH SALES PITCHES FOR NEW BUT SOMETIMES FLAWED PRODUCTS SINCE APPLE OUSTED HIM IN 1985 HOWEVER HIS VISION OF CREATING ANOTHER MAJOR COMPUTER COMPANY HAS BEGUN TO LOOK LIKE A PIPE DREAM HIS CLOSELY HELD NEXT WHICH HE ONCE PREDICTED WOULD KILL NOWHUGE SUN MICROSYSTEMS INC HAS NEVER TURNED A NET PROFIT AND HAS NEARLY EXHAUSTED 125 MILLION IN CASH FROM BACKERS SUCH AS ROSS PEROT AND CANON INC OF JAPAN TODAY MR JOBS IS UNVEILING A SOFTWARE PROGRAM FOR INTEL CORP'S LINE OF MICROPROCESSORS A PROGRAM THAT HE PORTRAYS AS CRUCIAL TO NEXT'S FUTURE THE PROGRAM CALLED NEXTSTEP HAS WON ACCLAIM FROM SOFTWARE CRITICS BECAUSE IT MAKES CUSTOMIZING PROGRAMS QUICK AND EASY BUT UNTIL TODAY THE SOFTWARE RAN ONLY ON NEXT'S OWN ILLFATED COMPUTERS WHICH WEREN'T COMPATIBLE WITH INTEL'S INDUSTRYSTANDARD CHIPS MR JOBS ENVISIONS HIS NEXTSTEPFORINTEL PRODUCT AS AN INDUSTRY RALLYING POINT HE SAYS THAT OUT OF FRUSTRATION WITH MICROSOFT CORP WHICH DOMINATES THE SOCALLED SYSTEMSOFTWARE BUSINESS THAT HE IS ENTERING HEAVYWEIGHTS SUCH AS HEWLETTPACKARD CO SUN MICROSYSTEMS AND NOVELL INC WILL MELD NEXTSTEP INTO THEIR OWN SOFTWARE STRATEGIES MAKING IT A DE FACTO STANDARD BUT SO FAR INDUSTRY REACTION HAS BEEN COOL WITH JUST A HANDFUL OF PC MAKERS SUCH AS HEWLETTPACKARD AND DELL COMPUTER CORP AGREEING TO OFFER NEXTSTEP SIMPLY AS AN OPTION TO CUSTOMERS THIS GIVES MR JOBS A SHOT AT SURVIVING AS A NICHE PLAYER BUT NOT A CHANCE TO RETURN TO STARDOM THE REASON WHILE HE COULDN'T MAKE UP HIS MIND ABOUT PUTTING NEXTSTEP ON STANDARD HARDWARE HIS CHIEF RIVALS MICROSOFT NOVELL AND A PARTNERSHIP BETWEEN APPLE AND INTERNATIONAL BUSINESS MACHINES CORP BEGAN SCRAMBLING TO MATCH NEXTSTEP'S FEATURES FAILING TO JUMP ON INTEL'S BANDWAGON FASTER HAS COST HIM VALUABLE TIME SAYS JOHN WARNOCK CHAIRMAN OF ADOBE SYSTEMS INC AND A LONGTIME FRIEND ALL THIS AMOUNTS TO A STEEP FALL FROM A VERY LOFTY PERCH MR JOBS LED AND INSPIRED THE TEAM THAT CREATED THE MOST ACCLAIMED PERSONAL COMPUTER APPLE'S MACINTOSH BUT HIS NEXT WORKSTATION SEEMS DESTINED TO BECOME A HIGHTECH MUSEUM RELIC HE HIMSELF IS FIGHTING TO SHOW HE STILL MATTERS IN THE COMPUTER INDUSTRY PEOPLE HAVE STOPPED PAYING ATTENTION TO HIM SAYS RICHARD SHAFFER EDITOR OF COMPUTER LETTER IT'S SAD INDEED THE DECLINE OF MR JOBS ILLUSTRATES THE WAY IN CORPORATE AFFAIRS A POWERFUL PERSONALITY CAN GENERATE EITHER A BONANZA OR A DISASTER DEPENDING ON THE MILIEU HIS LEGENDARY TRAITS HIS IMPERIOUSNESS HIS DEMAND FOR COMPLETE CONTROL HIS FAITH IN HIS OWN GENIUS SERVED HIM WELL AT APPLE WHERE HE HAD TO OVERCOME MUCH SKEPTICISM BUT BADLY AT NEXT HIS INSISTENCE ON COMPLETE CONTROL OVER A PROJECT WITH IBM FOR EXAMPLE DOOMED A 1989 AGREEMENT THAT WOULD HAVE LENT BIG BLUE'S BACKING TO NEXT'S SOFTWARE AND HE LOST VALUABLE TIME LAST YEAR WHEN HE IGNORED ADVISERS' REPEATED WARNINGS THAT NEXT COULDN'T COMPETE IN HARDWARE AND SHOULD BECOME A SOFTWARE COMPANY HE INSISTED THAT NEW MACHINES WOULD SAVE NEXT SAYS VINCENT JORDAN DIRECTOR OF SOFTWARE DEVELOPMENT AT WILTEL CORP AND A MEMBER OF A NEXT ADVISORY BOARD IN THE GOOD OLD DAYS AT APPLE NO ONE HAD TO SUGGEST THAT MR JOBS STAY IN TOUCH WITH NO FORMAL TRAINING IN COMPUTING HE DIVINED THE SHAPE OF THINGS TO COME HIS PRODUCT PLANNING AMOUNTED TO MAKING WHAT HE LIKED ALTHOUGH THIS LED TO BIG FLOPS SUCH AS THE LISA AND APPLE III COMPUTERS THAT DIDN'T SELL AND DRAINED RESOURCES IT ALSO RESULTED IN THE APPLE II THE FIRST WILDLY POPULAR PC AND LATER THE ELEGANT AND EASYTOUSE MACINTOSH HIS PERSONALITY QUIRKS WERE TOLERATED INSISTING ON INSANELY GREAT WORK HE BULLIED SUBORDINATES WHO DIDN'T MEET HIS STANDARDS AND PUBLICLY SCOFFED AT DEFECTORS IF WE WANTED TO WE COULD CRUSH YOU LIKE A BUG HE ONCE WARNED AN APPLE EMPLOYEE WHO QUIT TO START HIS OWN FIRM HE OFTEN TREATED BUSINESS PARTNERS WITH DISDAIN TOO IN THE EARLY 1980S FOR EXAMPLE HE UPBRAIDED MICROSOFT CHIEF EXECUTIVE WILLIAM GATES III FOR WRITING NONAPPLE SOFTWARE HE WOULD ORDER MR GATES TO FLY TO APPLE HEADQUARTERS AT A MOMENT'S NOTICE STEPHEN MANES AND PAUL ANDREWS WRITE IN THEIR BOOK GATES THE TWO JOURNALISTS ADD AT THE TIME GATES HAD LITTLE CHOICE BUT TO OBLIGE JOBS WAS THE INDUSTRY'S TOP DOG BUT AFTER A SALES SLUMP IN 1985 MR JOBS WAS OUSTED AS CHAIRMAN BY APPLE'S BOARD AMID COMPLAINTS THAT HE WAS ARROGANT HOTHEADED AND UNWILLING TO HEED CRITICISM MR JOBS HAD A VISION SO PURE THAT HE COULDN'T ACCOMMODATE THE WORLD JOHN SCULLEY WHO BESTED MR JOBS IN THE BOARDROOM BATTLE FOR APPLE'S REINS WROTE LATER AFTER LEAVING APPLE MR JOBS FOUNDED NEXT BRINGING WITH HIM SEVERAL LOYALISTS WHO WERE BENT ON CREATING A PATHBREAKING COMPUTER STEVE JOBS TOLD US I'M GOING TO BUILD THE WORLD'S BEST MACHINES FOR ACADEMIC COMPUTING' RECALLS RAYMOND NEFF VICE PRESIDENT FOR INFORMATION SERVICES AT CASE WESTERN RESERVE UNIVERSITY BUT THIS TIME MR JOBS'S VISION PROVED FLAWED THE MACINTOSH HAD SOLD WELL DESPITE ITS DEFECTS IT WAS SLOW AND EXPENSIVE BECAUSE IT WAS SO EASY TO USE MR JOBS SOUGHT TO TAKE THAT TACK FURTHER AT NEXT COMBINING EASYTOUSE SOFTWARE WITH NEWFANGLED GADGETS SUCH AS AN OPTICALDISK DRIVE BUT UNLIKE THE MACINTOSH WHICH HAD FLOURISHED IN A LARGELY UNTAPPED MARKET THE EXPENSIVE SLOW NEXT MACHINE HAD TO TAKE ON BIG ENTRENCHED RIVALS WHEN IT WAS INTRODUCED IN 1988 STEVE'S TROUBLE WAS THAT HE TRIED TO DO ANOTHER APPLE SAYS JEANLOUIS GASSEE A FORMER APPLE EXECUTIVE HE IS LIKE A PERSON WHO GOES FROM MARRIAGE TO MARRIAGE TRYING TO GET THE SAME RELATIONSHIP MR JOBS TENACIOUSLY STUCK TO HIS VISIONS EVEN THOUGH HIS ALLIES ADVOCATED CHANGES ONE BEFUDDLING EXAMPLE WAS HIS INSISTENCE THAT NEXT'S COMPUTERS HAVE ONLY THE OPTICALDISK DRIVE INSTEAD OF INDUSTRYSTANDARD FLOPPYDISK DRIVES MR JOBS SAID THE OPTICAL DRIVE WOULD LET USERS CARRY ALL THEIR FILES AND SOFTWARE AROUND ON ONE DISK A VISION HE CALLED THE WORLD IN YOUR POCKET HIS ARGUMENT SAYS A FORMER COLLEAGUE WAS THAT WE'VE FIGURED IT OUT AND EVERYONE ELSE WILL CATCH UP OPTICALDISK DRIVES ARE INDEED EXPECTED TO BECOME STANDARD IN THE FUTURE BUT MR JOBS WAS TOO FAR AHEAD OF THE CROWD SOFTWARE MAKERS REFUSED TO PUT PROGRAMS ON OPTICAL DISKS AND NEXT'S DISTRIBUTORS CUSTOMERS AND ENGINEERS CLAMORED FOR A FLOPPY DRIVE IN LATE 1989 FRUSTRATION WITH MR JOBS'S INTRANSIGENCE BOILED OVER AT A STAFF MEETING WHERE AN EMPLOYEE ASKED HIM WHEN NEXT WOULD INSTALL FLOPPY DRIVES MR JOBS INSISTED A FLOPPY WASN'T NECESSARY ANOTHER EMPLOYEE PERSISTED AND SOON THE MEETING ERUPTED IN A CHANT WE NEED A F FLOPPY WE NEED A F FLOPPY STILL MR JOBS REFUSED THOUGH HE RELENTED SOON AFTERWARD AGREEING TO DESIGN A FLOPPY INTO A FUTURE MODEL DESPITE A WEAK START MR JOBS INKED A STUNNING DEAL WITH IBM IN 1989 THAT COULD HAVE TURNED NEXTSTEP INTO A BIG PLAYER IBM THEN HEAVILY DEPENDENT ON MICROSOFT FOR OPERATING SOFTWARE AGREED TO ADAPT NEXTSTEP FOR ITS OWN PCS AND WORKSTATIONS BIG BLUE'S BACKING APPEARED TO ENSURE MR JOBS'S REBOUND IN THE COMPUTER INDUSTRY IF IBM USED NEXTSTEP ITS RIVALS WOULD SOON WANT IT AND NEXTSTEP'S SPREAD WOULD HELP NEXT'S COMPUTER SALES BUT AT THE CRUCIAL MOMENT MR JOBS DOOMED THE DEAL BY INSISTING ON COMPLETE CONTROL OVER NEXTSTEP'S FUTURE USES AND DEVELOPMENT SAYS DAN'L LEWIN A NEXT COFOUNDER AND MR JOBS'S SECONDINCOMMAND AT THE TIME STEVE GOT AFRAID THAT IBM WAS GOING TO TAKE AWAY SOME OF NEXT'S HARDWARE BUSINESS BY PACKAGING NEXTSTEP WITH IBM MACHINES MR LEWIN SAYS SO HE KEPT TOTAL CONTROL OVER THE DEVELOPMENT OF NEXTSTEP AND THAT ELIMINATED THE CHANCE THAT IBM WOULD BACK IT BECAUSE IBM WILL NOT SHIP A PRODUCT THAT THEY CANNOT AT LEAST SHAPE THE FUTURE OF MR JOBS SAYS THE IBM DEAL FOUNDERED BECAUSE IBM INSISTED ON GETTING THE RIGHTS TO ANY FUTURE NEXT SOFTWARE AND WANTED NEXT'S SOFTWARE TO RUN ON TOP OF IBM'S OWN OPERATING SYSTEM BUT LEE REISWIG CHIEF OF IBM'S PCSOFTWARE BUSINESS SAYS IBM MIGHT HAVE USED NEXTSTEP AS ITS FUTURE OPERATING SYSTEM IF MR JOBS HAD AGREED TO QUICKLY ADAPT IT TO INTEL MICROPROCESSORS AND NOT BEEN SO AFRAID OF IBM HURTING HIS HARDWARE BUSINESS WE JUST COULDN'T GET HIM ACROSS THE HURDLE SO WE BEGAN TO LOOK AT ALTERNATIVES MR REISWIG SAYS EVENTUALLY IBM FORMED A JOINT VENTURE WITH APPLE CALLED TALIGENT TO BUILD AN OPERATING SYSTEM THAT MORE THAN DUPLICATED NEXTSTEP NEXT WENT INTO A LONG SLOW SLIDE MR JOBS'S CONCENTRATION ON HIGHEREDUCATION MARKETS GAVE WAY TO AN INTEREST IN SELLING TO CORPORATIONS BUT IN THAT ROUGHANDTUMBLE MARKET RIVALS SUCH AS HEWLETTPACKARD AND SUN TURNED OUT FASTER MODELS MORE QUICKLY AND AT LOWER PRICES AND NEXT'S SALES FAILED TO GROW MUCH MR JOBS COMPOUNDED HIS PROBLEMS BY DOGGEDLY STICKING TO A MOTOROLA INC MICROPROCESSOR THAT HIS RIVALS WERE ABANDONING IN FAVOR OF FASTER CHIPS AT THE SAME TIME MR JOBS DRAGGED HIS FEET ON A PRODUCT THAT MANY CONSIDERED NEXT'S MOST IMPORTANT A VERSION OF NEXTSTEP THAT RUNS ON PCS USING INTEL'S 486 MICROPROCESSOR HE SAID IN JANUARY 1992 THAT THE INTEL VERSION WOULD BE OUT BY FALL OF 1992 BUT THE PROJECT HIT SERIOUS DELAYS NEXT'S CUSTOMERS URGED MR JOBS TO STOP POURING RESOURCES INTO HARDWARE DEVELOPMENT AND CONCENTRATE ON DEVELOPING SOFTWARE ESPECIALLY THE INTEL VERSION HIS REACTION WAS SO COOL THAT A DAY BEFORE A GROUP OF ADVISERS WAS TO MEET WITH HIM IN JUNE 1992 THEY AGREED TO CONFRONT HIM WITH A UNANIMOUS MESSAGE NEXT COULDN'T COMPETE IN SOFTWARE WHILE HARDWARE INVESTMENTS IN NEW MODELS WERE DRAINING ITS RESOURCES MR JOBS ENAMORED WITH HIS MACHINES IGNORED THE ADVICE MEANWHILE MR JOBS'S CHIEF LIEUTENANTS BEGAN JUMPING SHIP BY LAST FALL EVERY SIGNIFICANT COFOUNDER HAD LEFT THOSE THAT REMAINED WHILE ATTRACTED BY MR JOBS'S VIRTUES WERE INCREASINGLY SUBJECTED TO HIS LEGENDARY TEMPER EVERYBODY JUST LIVED IN FEAR OF HIM SAYS MAX HENRY A NEXT VICE PRESIDENT WHO LEFT TO START A SOFTWARE COMPANY HE WOULD SPEND A LOT MORE TIME BEATING UP PEOPLE THAN THANKING THEM FOR DOING IT RIGHT BY LATE LAST YEAR PETER VAN CUYLENBERG THEN NEXT'S CHIEF OPERATING OFFICER WAS TELLING MR JOBS THAT NEXT WOULD RUN OUT OF MONEY IN 1993 IF IT DIDN'T MAKE DRASTIC CHANGES MR JOBS FINALLY ENDORSED A SOFTWAREONLY PLAN IN FEBRUARY WHEN NEXT CLOSED ITS COMPUTER FACTORY AND SAID IT WOULD LAY OFF MORE THAN HALF ITS 536 EMPLOYEES IT MADE ME SAD BUT WE HAD NO CHOICE MR JOBS SAYS SADDER STILL ARE THOSE WHO BOUGHT HIS VISIONS MANY WHO JOINED NEXT EXPECTED TO CASH IN STOCK OPTIONS WHEN IT WENT PUBLIC AS MR JOBS PROMISED IT WOULD BUT HASN'T AVADIS TEVANIAN A NEXT SOFTWARE DESIGNER CHOSE TO WORK FOR MR JOBS IN 1988 REJECTING A JOB OFFER FROM MR GATES WHO WOOED HIM WITH MICROSOFT STOCK OPTIONS THAT WOULD NOW BE VALUED AT MILLIONS OF DOLLARS I'D BE LYING TO YOU IF I TOLD YOU I HAD NO REGRETS AT ALL SAYS MR TEVANIAN WHO ADDS THAT NEXT STILL OFFERS HIM A WONDERFUL CREATIVE CHALLENGE I CAN COMPUTE RIGHT DOWN TO THE DOLLAR WHAT MY NET WORTH WOULD BE IF I'D JOINED MICROSOFT INVESTORS SUCH AS MR PEROT AND CANON HAVE ALSO TAKEN A HIT IN 1989 CANON INVESTED 100 MILLION IN NEXT FOR A 17 STAKE PLUS ANOTHER 15 MILLION LAST YEAR WHILE EXTENDING A LINE OF CREDIT CONVERTIBLE INTO STOCK IN 1987 NEXT RECEIVED 20 MILLION FROM MR PEROT THE TEXAS BILLIONAIRE A CANON SPOKESMAN SAYS THE JAPANESE COMPANY IS STUDYING WAYS TO RECOUP VALUE FROM ITS INVESTMENT A SPOKESMAN FOR MR PEROT DECLINES TO COMMENT MR JOBS'S NEW START AS A SOFTWARE COMPANY PROBABLY HAS COME TOO LATE WHEN NEXTSTEP WAS RELEASED FOUR YEARS AGO IT USED A PATHBREAKING APPROACH CALLED OBJECTORIENTED PROGRAMMING IN WHICH PROGRAMMERS CAN PLUG TOGETHER MODULAR PIECES OF SOFTWARE TO CREATE PROGRAMS MORE QUICKLY TODAY OBJECT PROGRAMMING HAS BEEN WIDELY EMBRACED PUTTING MR JOBS'S COMPETITIVE POSITION AT RISK MICROSOFT FOR INSTANCE SUGGESTS ITS CODE WRITERS ALREADY HAVE SURPASSED NEXTSTEP WE'RE DOING A LOT MORE THAN NEXTSTEP AND WE'LL HAVE IT FINISHED A LOT SOONER THAN HE THINKS SAYS JIM ALLCHIN WHO LEADS MICROSOFT'S DEVELOPMENT EFFORT INDEED MICHAEL SLADE WHO LEFT MICROSOFT TWO YEARS AGO TO BECOME MR JOBS'S CHIEF LIEUTENANT SAYS HE LEFT NEXT IN NOVEMBER RATHER THAN BUTT HEADS WITH THE GOLIATHS I WANTED TO GET OUT OF BUSINESSES WHERE YOU'RE DIRECTLY COMPETING WITH MICROSOFT MR SLADE SAYS IN APRIL MR JOBS WAS ALSO DEALT A SIGNIFICANT DEFEAT WHEN IBM HEWLETTPACKARD SUN NOVELL AND SEVERAL OTHER SOFTWARE CONCERNS FORMED THEIR ALLIANCE TO STANDARDIZE IMPORTANT ASPECTS OF WORKSTATION SOFTWARE AND LEFT OUT NEXT IN A MARCH 17 MEMO TO EMPLOYEES MR JOBS FOUND A SILVER LINING IN THE SNUB TELLING COLLEAGUES THAT THE ALLIES HAD NOT CHOSEN ANYTHING INSTEAD OF NEXTSTEP EITHER MOREOVER HE WROTE HIS STAFF THAT HP AND NOVELL REALLY LIKE NEXTSTEP WHILE THIS IS TRUE NEITHER COMPANY PLANS TO PUT NEXTSTEP AT THE CENTER OF ITS SOFTWARE STRATEGY SAY KNOWLEDGEABLE PEOPLE EVEN MR JOBS'S SUPPORTERS ARE PESSIMISTIC LAWRENCE ELLISON CHAIRMAN OF ORACLE CORP AND A CLOSE FRIEND SAYS THAT FOR MR JOBS TO RETURN TO THE MAJOR LEAGUES HE MUST PERSUADE A LEADING PLAYER SUCH AS NOVELL TO TAKE A SIZABLE EQUITY STAKE IN NEXT AND AGREE TO CODEVELOP AND MARKET FUTURE VERSIONS OF NEXTSTEP SIMPLY HAVING PERSUADED PC MAKERS TO SELL NEXTSTEP AS ONE OF MANY SOFTWARE OPTIONS WON'T PROPEL MR JOBS BACK TO COMPUTING'S MAINSTREAM HE SAYS FORMER CLOSE ASSOCIATES SAY HE NEEDS TO JUST GO ON TO SOMETHING ELSE IF HE WANTS TO RISE TO THE TOP OF PC WORLD AGAIN BUT GEORGE CROWE A NEXT COFOUNDER WHO LEFT RECENTLY FEELS THE ODDS ARE MR JOBS WHO INSISTS HE WILL RIDE OUT THE STORM AT NEXT WON'T JUMP SHIP HE'S REALLY STAKED HIS REPUTATION ON NEXT AND I DON'T SEE HOW HE CAN WALK AWAY MR CROWE SAYS MR JOBS UNDAUNTED SPINS VISIONS OF BATTLES THAT NEXT IS POISED TO WIN IN THE MARCH 17 MEMO HE ACCUSED SUN OF TRYING TO THWART NEXT'S EFFORTS CONTENDING WE REPRESENT A REAL THREAT TO THEIR ASPIRATIONS TO BECOME A MAJOR SOFTWARE PLAYER AND I THINK THEY WOULD RATHER HAVE US DEAD THAN ALIVE SUN'S CHIEF EXECUTIVE SCOTT MCNEALY RESPONDS I DON'T THINK A COMPANY THE SIZE OF NEXT SURVIVES NO MATTER HOW IMPRESSIVE ITS TECHNOLOGY YET MR JOBS TALKS OF NEXTSTEP AS THE OPERATING SYSTEM OF THE '90S PARTLY BECAUSE EVERYONE WANTS AN ALTERNATIVE TO MICROSOFT AND HE CONTINUES TO CONTEND THAT MR GATES CAN'T MATCH HIS OWN RECORD OF INNOVATION BEING THE RICHEST MAN IN THE CEMETERY DOESN'T MATTER TO ME HE SAYS GOING TO BED AT NIGHT SAYING WE'VE DONE SOMETHING WONDERFUL THAT'S WHAT MATTERS TO ME 9305250089 930525 DEMOCRATS SEEK BROAD SUPPORT FOR HEALTH PLAN NATIONAL CAMPAIGN IS SET TO EXPLAIN THE DETAILS OF COMPLEX REFORMS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS ARE CREATING WHAT THEY HOPE WILL BECOME A BROAD BIPARTISAN ORGANIZATION TO GENERATE GRASSROOTS SUPPORT FOR PRESIDENT CLINTON'S COMING HEALTHCARE OVERHAUL PLAN THE DEMOCRATIC NATIONAL COMMITTEE HAS PROVIDED SEED MONEY IN THE FORM OF A 100000 LOAN TO HELP LAUNCH THE ORGANIZATION WHICH WILL BE CALLED THE NATIONAL HEALTH CARE CAMPAIGN SAID DAVID WILHELM THE DEMOCRATIC NATIONAL CHAIRMAN THE DNC ALSO WILL PROVIDE SOME MONEY TO SUPPORT THE GROUP'S OPERATIONS ONCE IT IS UP AND RUNNING BUT MR WILHELM TOLD REPORTERS THAT AFTER GIVING THE GROUP A SENDOFF THE DEMOCRATIC PARTY WANTS IT TO EVOLVE INTO A NONPARTISAN OPERATION SUPPORTED BY UNIONS CONSUMER GROUPS SMALL BUSINESSES RETIREES' ORGANIZATIONS AND OTHERS WHO CAN BE PERSUADED TO BACK THE CLINTON HEALTH PLAN WHICH PROMISES TO BE COMPLICATED AND CONTROVERSIAL THIS HEALTHCARE CAMPAIGN WILL RISE OR FALL ON WHETHER OR NOT THERE IS BIPARTISAN SUPPORT MR WILHELM SAID I DON'T THINK ANYONE WANTS THIS TO BE PERCEIVED AS JUST A DEMOCRATIC INITIATIVE THE DEMOCRATS' DECISION TO UNDERTAKE SUCH A BROAD CAMPAIGN APPEARS TO REFLECT A CONCLUSION THAT EXPLAINING SUCH A BIG AND COSTLY PROGRAM WILL BE AN ENORMOUS JOB AS WELL AS A BELIEF THAT THE FATE OF THE CLINTON PRESIDENCY COULD HINGE ON WHETHER THE JOB IS DONE SUCCESSFULLY THE DEMOCRATS' PLAN IS EMERGING AS PRESIDENT CLINTON AND HIS TOP ADVISERS GRAPPLE WITH A HOST OF DIFFICULT QUESTIONS JUST WHAT SHOULD THE HEALTHCARE PACKAGE INCLUDE WHO SHOULD PAY FOR IT MR CLINTON HAD BEEN SCHEDULED TO SIT DOWN WITH TOP AIDES TO DISCUSS THESE ISSUES LAST NIGHT BUT THE MEETING WAS POSTPONED APPARENTLY SO WHITE HOUSE OFFICIALS COULD FOCUS ON THE ADMINISTRATION'S ECONOMIC PACKAGE ITS OTHER MAIN INITIATIVE AT THE MOMENT THE NEW ORGANIZATION IS TO BE SUPERVISED BY CELIA FISCHER A CLINTON CAMPAIGN OPERATIVE WHO HAD BEEN BROUGHT INTO THE DNC AFTER THE ELECTION TO HELP GENERATE SUPPORT FOR THE HEALTH PLAN BUT MR WILHELM ALSO SAID THE NEW ORGANIZATION ULTIMATELY MIGHT TRY TO RECRUIT A HIGHPROFILE PUBLIC FIGURE TO LEAD THE CAMPAIGN DEMOCRATS HOPE THE ORGANIZATION WILL SERVE AS THE UMBRELLA UNDER WHICH GROUPS THAT FAVOR THE CLINTON PROGRAM CAN COORDINATE THEIR EFFORTS AND GENERATE MAXIMUM PRESSURE ON LAWMAKERS TO SUPPORT IT MR WILHELM SAID FOR INSTANCE THAT THE GROUP MIGHT BUY PAID ADVERTISING IN SELECTED STATES IF IT GENERATES ENOUGH MONEY TO DO SO THE CLINTON ADMINISTRATION CALCULATES THAT AN EFFECTIVE SALES JOB IS CRUCIAL TO THE HEALTH PLAN BECAUSE THEY SENSE THAT WHILE VOTERS CRAVE CHANGES IN THE INCREASINGLY EXPENSIVE HEALTHCARE SYSTEM THEY HAVE LITTLE UNDERSTANDING OF THE DETAILS OF POTENTIAL REFORMS AS A RESULT SOME OF MR CLINTON'S TOP POLITICAL ADVISERS HAVE BEEN MEETING PERIODICALLY TO PULL TOGETHER A STRATEGY FOR COMMUNICATING AND PROMOTING THE HEALTHCARE PROGRAM EVEN BEFORE ITS DETAILS HAVE BEEN DETERMINED WE NEED TO EDUCATE PEOPLE ABOUT IT MR WILHELM SAID THEY'RE GOING TO HEAR ALL KINDS OF STUFF ABOUT THIS PLAN THE PEOPLE WHO PROFIT FROM THE CURRENT SYSTEM ARE GOING TO BE OUT THERE IN FORCE WE HAVE TO BE OUT THERE WITH EQUAL FORCE OR GREATER FORCE 9305250086 930525 BUSINESS WORLD THE NEXT LENDER LITIGATION WAVE MORTGAGE BIAS BY TIM W FERGUSON AT THE SAME TIME THAT BANKERS ARE UNDER REGULATORY SIEGE FOR RISKY LOANS THEY ALSO FACE LIABILITY FOR NOT LENDING ENOUGH TO BLACKS AND HISPANICS LIKE THE FIRST CRACKDOWN THE ENFORCEMENT OF ANTIDISCRIMINATION MEASURES SUCH AS THE COMMUNITY REINVESTMENT ACT CRA IS BEING PUSHED BY ACTIVIST DEMOCRATS ON POWERFUL PANELS IN CONGRESS ONE DIFFERENCE IS THAT IN THE CASE OF MINORITY BORROWERS THE CLINTON ADMINISTRATION IS ADDING TO THE PRESSURE ON THE BANKS CAUGHT IN THE MIDDLE ARE THE REGIONAL FEDERAL RESERVE BANKS WHOSE RESPONSIBILITIES INCLUDE ENCOURAGING BANKS TO WIDEN THEIR MORTGAGELOAN UNIVERSE THE TROUBLING PROSPECT OF BEING DRAFTED AS BIAS COPS IS WEIGHING ON THE 12 REGIONAL CHIEFS AT A MEETING THIS WEEK ALSO IN THE CROSSFIRE HE SAYS IS LAWRENCE LINDSEY THE FEDERAL RESERVE BOARD GOVERNOR IN WASHINGTON RESPONSIBLE FOR THE FED'S CRA COMPLIANCE UNIT HE'S BEEN NOISY ABOUT BIAS BUT IN AN INTERVIEW SOUNDS MORE LIKE THE ECONOMIST FOR PRESIDENT REAGAN HE ONCE WAS MR LINDSEY CAUTIONS AGAINST OVERSTATING THE MORTGAGE DISCRIMINATION AND ACCENTS THE MARKETPLACE AS A CURATIVE HE DISTINGUISHES THE FED'S APPROACH EVEN THAT OF THE LAWYERS WHO CONSTITUTE ITS CRA STAFF FROM THE HOUNDS AT THE JUSTICE DEPARTMENT JUSTICE LAST YEAR FORCED A 1 MILLION SETTLEMENT BY DECATUR SAVINGS IN THE ATLANTA AREA FOR FAILURES TO LEND TO MINORITIES THE AGENCY HAS BEEN QUIET SINCE BUT THE BANKING WORLD FEARS A SLEW OF CASES ARE IN THE OFFING ALSO CLASSACTION FILINGS HAVE COMMENCED FINES WHICH COULD EXTEND TO INDIVIDUAL OFFICERS SUPPLEMENT REGULATORY POWERS UNDER CRA TO DENY EXPANSIONS AND MERGERS OF BANKS THAT DON'T MEET THE LEGISLATION'S GOALS A CONSCIENTIOUS BANKER HAS TO WONDER ABOUT TAKING ANY INTERNAL MEASUREMENTS THAT MIGHT SUBSEQUENTLY BE USED AGAINST HIS OPERATION EITHER IN COURT OR BY PUBLICITYMINDED PUBLIC OFFICIALS A LOT OF INFORMATION ALREADY IS REQUIRED UNDER CRA AND OTHER LAWS THIS RAW STUFF CAN BE A POWERFUL WEAPON PARTICULARLY WHEN AGENCIES SUCH AS THE COMPTROLLER OF THE CURRENCY AND THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ARE EAGER TO CARVE OUT THEIR OWN ENFORCEMENT NICHES I'M CONCERNED THAT THE WILL TO GET TOUGH IS GOING TO GET AHEAD OF THE METHODOLOGY SAYS JO ANN BAREFOOT A COLUMBUS OHIO CONSULTANT BANKS WILL BE FACED WITH THE BURDEN OF PROVING THEIR INNOCENCE WITHOUT THE TECHNOLOGY TO SHOW THAT THEY ARE INNOCENT THE REGIONAL FEDS ARE WELLPLACED TO PROBE AGGREGATE DATA TO SEE WHETHER AN IMPLIED PREFERENCE FOR WHITE BORROWERS IS IN FACT A FUNCTION OF BIAS IN INDIVIDUAL CASES THIS IS WHAT THE BOSTON FED DID LAST YEAR IN A SURVEY THAT IS NOW THE BASIC REFERENCE POINT IN THE DISCRIMINATION DEBATE BUT PART OF THE FALLOUT FROM THAT STUDY WHICH SUGGESTED A MODEST BUT REAL LEVEL OF PREJUDICE IS A FEAR THAT BOSTON'S RECORDS WILL BE SUBPOENAED BY THE JUSTICE DEPARTMENT IS THE ATTITUDE OF FEDERAL AUTHORITIES THAT THE BANKING INDUSTRY IS FUNDAMENTALLY RACIST AND NEEDS TO BE BROUGHT TO HEEL OR THAT NEARLY ALL INSTITUTIONS INCLUDING MOST OF THOSE THAT'VE BEEN NUMERICAL VIOLATORS TO DATE ARE GENUINELY SEEKING TO BE MORE EVENHANDED MR LINDSEY ALTHOUGH HE'S NOT ONE TO BELIEVE IN FORGIVENESS OF SINS AND THE START OF A NEW WORLD ASCRIBES BIAS PATTERNS TO CULTURAL AFFINITY NOT CROSS BURNING AND THAT REINFORCES MY VIEW THAT PUNISHING PAST STATISTICAL SINS IS A STRANGE KIND OF JUSTICE CULTURAL AFFINITY AMOUNTS TO THIS A MUCH LOWER PERCENTAGE OF BLACKS AND HISPANICS IS FAMILIAR WITH BANKS FEWER APPLY FOR LOANS AND EVEN THOSE WHO DO MAY NOT BE AS PREPARED AS THE AVERAGE WHITE APPLICANT MOREOVER WHILE BORDERLINE BORROWERS MAY BE HELPED ALONG IF LOAN OFFICERS CAN RELATE TO THEIR CIRCUMSTANCES THOSE FROM UNFAMILIAR BACKGROUNDS TEND TO BE DISMISSED AS TOO MUCH TROUBLE TO PURSUE THIS IS THE SOCALLED THICKERFILE PHENOMENON WHITES ARE GIVEN MORE COACHING TO OVERCOME FLAWS IN THEIR CREDIT STANDING AND THEIR APPLICATIONS SHOW MORE PAPERWORK AS A RESULT ANECDOTAL EVIDENCE SUPPORTS THIS IMPRESSION MR LINDSEY HAS SAID BUT THE MATTER IS CONTENTIOUS WITHIN THE INDUSTRY INDEED CONTROVERSY SURROUNDS THE PIVOTAL BOSTON FED STUDY WHICH SOUGHT TO EXAMINE THE FATE OF LIKE MORTGAGE APPLICANTS MR LINDSEY TAKES THE RESULTS 17 TURNDOWN OF BLACKS VS 11 OF COMPARABLE WHITESAT FACE VALUE AND IS ENCOURAGED THEY INDICATE TO HIM THAT IN ONLY SIX CASES OUT OF 100 OR EIGHT USING A BREAKDOWN HE PREFERS DO BLACKS SUFFER DISCRIMINATION AND THAT MEANS THE PROFIT MOTIVE IS GRADUALLY OVERCOMING DEEP HISTORICAL BIAS TO SEE THE DATA AS DAMNING HE SAYS IS TO CREATE A CHILLING EFFECT THAT IS NOT HELPFUL TO CREATING OPPORTUNITIES FOR BLACK HOMEOWNERSHIP THE REGULATORY LEFT WHICH WANTS TO SOCIALIZE BANKING WOULD DO JUST THAT BUT MEANWHILE THE BOSTON STUDY HAS DRAWN FIRE FROM THE RIGHT FIRST FORBES MAGAZINE AND LATER OTHERS INCLUDING NOBEL ECONOMIST GARY BECKER ARGUED THAT IF BLACKS HAD FACED A STIFFER TEST FOR APPROVAL AS THE BOSTON FED CONCLUDED THE DEFAULT RATES OF THOSE WHO QUALIFIED WOULD BE LOWER YET THERE'S NO REASON TO THINK THEY ARE THEREFORE THE BANKS HAVE BEEN APPLYING APPROPRIATE TESTS THAT CHALLENGE IS REVERBERATING LAST WEEK STEPHEN CROSS DEPUTY COMPTROLLER OF THE CURRENCY SOUGHT TO PUT IT DOWN IN REMARKS AT A HUD CONFERENCE STEREOTYPING MAY LEAD TO TIGHTER TRIGGERS OF DEFAULTS FOR BLACKS THUS RAISING THEIR AVERAGE RATE HE SAID ALSO APPROVED BLACK APPLICANTS TEND TO BE CLUSTERED NEAR THE QUALIFYING CUTOFF WHEREAS MORE WHITES RANGE UP THE FINANCIAL SCALE AND AWAY FROM POTENTIAL DEBT TROUBLE THAT'S PLAUSIBLE BUT NOT TELLING IN A PAPER LAST FEBRUARY RESEARCHERS AT THE CLEVELAND FED ASKED WHETHER THE BOSTON DATA WEREN'T A DIVERSION FROM THE ORIGINAL INTENT OF CRATYPE LEGISLATION WHICH WAS TO BROADEN BANKERS' CONCEPTS OF THEIR COMMUNITY LENDERS WERE TO CAST A DIFFERENT EYE ON THEIR CUSTOMER BASE AS MR LINDSEY PUTS IT IN THE SAME WAY A CAR SALESMAN SEES EVERYONE WHO COMES IN THE DOOR AS A POTENTIAL SALE AS BANKERS CANVASS THEIR MARKET FOR POSSIBILITIES THEY ARE GOING TO RISK HIGHER DENIAL RATES WHICH MAY AFFECT THEM ADVERSELY EVEN IN STUDIES THAT PURPORT TO CORRECT FOR ALL VARIABLES AND TAXPAYERBACKED INSTITUTIONS SHOULDN'T BE OKING BAD LOANS AS MR LINDSEY SIGNIFICANTLY CONCEDES THERE IS PERIL TO SAFETY AND SOUNDNESS ON THE MARGINS OF THE CRA WE HAVE TWO ISSUES HERE THE FIRST IS AN INTELLECTUAL DEBATE OVER THE EXTENT OF UNFOUNDED DISCRIMINATIONBAD BANKINGTHAT'S ACTUALLY GOING ON THE SECOND IS A POLICY QUESTION IS A PROSECUTORIAL CLIMATE BEST FOR GETTING SUSPECT BANKS TO SERVE ALL AS PER THEIR CHARTERS THE PEOPLE IN THE MIDDLE THROUGHOUT THE FED SYSTEM WILL FIND IT EVER HARDER TO DUCK THE FIRE 9305250085 930525 TECHNOLOGY HDTV GROUPS ANNOUNCE PLANS TO MERGE SYSTEMS VYING TO BECOME US STANDARD BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MAKERS OF FOUR SYSTEMS VYING TO BECOME THE US STANDARD FOR HIGHDEFINITION TELEVISION ANNOUNCED PLANS TO COMBINE THEIR TECHNOLOGY AND SPLIT ROYALTY PAYMENTS SLASHING THE TIME IT WILL TAKE TO MAKE HDTV SETS AND PROGRAMMING AVAILABLE TO THE PUBLIC A SPECIAL ADVISORY COMMITTEE TO THE FEDERAL COMMUNICATIONS COMMISSION SAID IT WILL REVIEW THE SINGLE DIGITAL HDTV SYSTEM PROPOSED YESTERDAY AFTER THE COMMITTEE SIGNS OFF ON PLANS FOR THE MERGED SYSTEM A PROTOTYPE SYSTEM WILL BE BUILT AND TESTED A PROCESS THAT IS LIKELY TO TAKE SEVERAL MONTHS THE ANNOUNCEMENT ON THE PLANNED SYSTEM HAD BEEN EXPECTED TWO OF THE SYSTEMS WERE DEVELOPED BY GENERAL INSTRUMENT CORP AND THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY ONE BY A TEAM OF ZENITH ELECTRONICS INC AND AMERICAN TELEPHONE & TELEGRAPH CO AND ONE BY A GROUP THAT INCLUDES DAVID SARNOFF RESEARCH CENTER THE US UNITS OF THOMSON SA OF FRANCE AND PHILIPS ELECTRONICS NV OF THE NETHERLANDS GENERAL ELECTRIC CO'S NBC UNIT AND COMPRESSION LABS INC OF SAN JOSE CALIF REPRESENTATIVES OF THE FOUR SYSTEMS SIGNED A LETTER OF UNDERSTANDING YESTERDAY AND ARE EXPECTED TO PREPARE A FINAL AGREEMENT IN COMING WEEKS RICHARD E WILEY ADVISORY COMMITTEE CHAIRMAN WHO HAD ENCOURAGED THE GRAND ALLIANCE SAID HIS PANEL IS EXPECTED TO MAKE A RECOMMENDATION TO THE FCC NEXT YEAR THE AGENCY WILL THEN DECIDE THE HDTV STANDARD WHILE THE MERGED SYSTEM IS CERTAIN TO UNDERGO CHANGE AS IT MOVES THROUGH THE REVIEW AND TESTING PROCESS MR WILEY SAID IN A NEWS CONFERENCE THAT HIS PANEL WON'T CONSIDER OTHER SYSTEMS THAT MIGHT EMERGE WE DON'T SEE ANOTHER TECHNOLOGY ON THE IMMEDIATE HORIZON HE SAID MR WILEY SAID THE PANEL WILL RECOMMEND A STANDARD THAT HAS ENOUGH TECHNOLOGICAL HEADROOM TO ACCOMMODATE THE DEVELOPMENT OF IMPROVED TV SETS AND TRANSMISSION EQUIPMENT MUCH THE SAME WAY THE CURRENT STANDARD HAS EVOLVED AND IMPROVED OVER THE LAST 40 YEARS A FORMER FCC CHAIRMAN MR WILEY SHEPHERDED THE NEGOTIATIONS LEADING TO THE ALLIANCE THAT WAS LARGELY HAMMERED OUT IN THE PAST TWO TO THREE WEEKS NEGOTIATIONS WERE WRAPPED UP IN A MARATHON CONFERENCE CALL YESTERDAY WHAT EMERGED IS A PROPOSAL ADDRESSING THE CONCERNS OF BROADCASTERS CABLE OPERATORS COMPUTER INDUSTRY EXECUTIVES AND OTHERS WHO WILL BE BUILDING USING OR BUYING EQUIPMENT FOR THE SYSTEM BUT MR WILEY AND OTHERS POINTED OUT THAT HDTV WILL DELIVER NOT ONLY CRISPER PICTURES AND CLEARER SOUND BUT ALSO MEDICAL IMAGING EDUCATIONAL SERVICES AND OTHER MULTIMEDIA APPLICATIONS BROADCASTERS ESTIMATE THE COST OF CONVERTING A STATION'S TRANSMISSION AND PROGRAMMING SYSTEMS TO AN HDTV FORMAT AT 12 MILLION TO 15 MILLION MORE THAN SOME STATIONS ARE VALUED AT TODAY 9305250084 930525 FINANCING BUSINESS BLUE CHIP VALUE FUND INC BLUE CHIP VALUE FUND INC DENVER THE CLOSEDEND COMMON STOCK MUTUAL FUND SAID IT PLANS TO OFFER EXISTING SHAREHOLDERS RIGHTS TO BUY NEW STOCK THE FUND TENTATIVELY PLANS TO ISSUE ONE RIGHT TO PURCHASE AN ADDITIONAL SHARE FOR EACH EIGHT SHARES OWNED THE RIGHTS WOULD ENABLE SHAREHOLDERS TO PURCHASE A NEW SHARE AT 95 OF THE NET ASSET VALUE OR THE MARKET PRICE WHICHEVER IS LOWER THE FUND INTENDS TO PROCEED WITH THE OFFER LATER THIS SUMMER ALTHOUGH EXACT DATES AND TERMS OF THE OFFER HAVEN'T BEEN DETERMINED 9305250083 930525 HIGH COURT SAYS PROPERTY CAN'T BE USED BY EMPLOYERS TO FUND PENSION PLANS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID THAT UNDER THE FEDERAL PENSIONPROTECTION LAW EMPLOYERS MAY NOT CONTRIBUTE PROPERTY INSTEAD OF MONEY TO FUND RETIREMENT PLANS IN A VICTORY FOR THE INTERNAL REVENUE SERVICE THE JUSTICES SAID THAT IF CONTRIBUTIONS OF PROPERTY WERE ALLOWED EMPLOYERS MIGHT OVERVALUE THE PROPERTY AND SHORTCHANGE RETIREES THE IRS HAS ESTIMATED THAT IN 1989 ALONE 243 MILLION IN PROPERTY WAS CONTRIBUTED BY EMPLOYERS TO MORE THAN 400 SEPARATE PENSION PLANS THE HIGH COURT'S 81 DECISION CONCERNED RULES THAT EMPLOYERS MUST FOLLOW TO ENJOY FAVORABLE TAX TREATMENT UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT KNOWN AS ERISA BY MEETING ERISA'S REQUIREMENTS EMPLOYERS MAY TAKE INCOMETAX DEDUCTIONS EQUAL TO THE VALUE OF THEIR CONTRIBUTIONS TO PENSION PLANS ERISA ALSO IMPOSES STIFF ADDITIONAL TAXES ON EMPLOYERS THAT ENGAGE IN CERTAIN PROHIBITED TRANSACTIONS RELATED TO THEIR PENSION PLANS THE SUPREME COURT YESTERDAY AGREED WITH THE IRS THAT TRANSFER OF PROPERTY TO A PENSION PLAN IS ONE SUCH FORBIDDEN TRANSACTION EMPLOYERS ESPECIALLY SMALLER COMPANIES THAT FREQUENTLY ARE PRESSED FOR CASH HAD CONTENDED THAT TRANSFERS OF PROPERTY SHOULD BE PERMISSIBLE AS LONG AS THE PROPERTY ISN'T SUBJECT TO A MORTGAGE OR A SIMILAR LIEN BUT THE HIGH COURT SAID CONGRESS MEANT TO BAR EMPLOYERS FROM TRANSFERRING ANY SORT OF PROPERTY TO PENSION PLANS ENACTED IN 1974 ERISA WAS INTENDED TO END ABUSES SUCH AS THE EMPLOYER'S SALE OF PROPERTY TO THE PLAN AT AN INFLATED PRICE OR THE SPONSOR'S SATISFACTION OF A FUNDING OBLIGATION BY CONTRIBUTION OF PROPERTY THAT WAS OVERVALUED OR NONLIQUID JUSTICE HARRY BLACKMUN WROTE FOR THE MAJORITY YESTERDAY'S DECISION REVERSED A LOWERCOURT RULING THAT HAD ALLOWED KEYSTONE CONSOLIDATED INDUSTRIES INC TO CONTRIBUTE REAL ESTATE VALUED AT 15 MILLION TO ITS PENSION PLAN IN THE 1980S FOLLOWING THE HIGHCOURT DECISION THE DALLASBASED STEEL AND WIRE MANUFACTURER SAID IT WOULD TAKE A SECONDQUARTER CHARGE OF 55 MILLION OR 1 A SHARE TO REFLECT PENALTIES FOR THOSE PROHIBITED TRANSACTIONS KEYSTONE WHICH IN THE SECOND QUARTER OF 1992 HAD NET INCOME OF 6 MILLION OR 108 A SHARE ON SALES OF 925 MILLION ALSO SAID IT WILL PROVIDE 2 MILLION IN ADDITIONAL FUNDING TO ITS PENSION PLANS IN NEW YORK STOCK EXCHANGE TRADING KEYSTONE SHARES ROSE 150 TO 1050 THE STOCK INITIALLY SOARED AFTER PAINEWEBBER PUT OUT A BUY RECOMMENDATION ON THE STOCK THEN FELL FOLLOWING THE COURT RULING BUT FINISHED HIGHER ON THE DAY COMMISSIONER OF INTERNAL REVENUE VS KEYSTONE CONSOLIDATED INDUSTRIES INC SEPARATELY THE SUPREME COURT HANDED KEENE CORP A DEFEAT IN ITS BATTLE WITH THE FEDERAL GOVERNMENT OVER RESPONSIBILITY FOR ASBESTOSRELATED ILLNESSES SUFFERED BY WORKERS AT NAVY SHIPYARDS THE HIGH COURT'S RULING COULD CREATE A SIGNIFICANT OBSTACLE TO COMPANIES AND INDIVIDUALS WHO LIKE KEENE HAVE A VARIETY OF CLAIMS AGAINST THE GOVERNMENT THAT ARE RELATED TO A COMMON UNDERLYING DISPUTE KEENE HAS PAID HUNDREDS OF MILLIONS OF DOLLARS ON ASBESTOS CLAIMS AS HAVE A NUMBER OF OTHER FORMER MAKERS AND DISTRIBUTORS OF PRODUCTS CONTAINING ASBESTOS THE COMPANY FACES ADDITIONAL LIABILITY IN THOUSANDS OF PENDING LAWSUITS ASBESTOS ONCE COMMONLY USED IN INSULATION AND FIRERETARDANT MATERIAL CAN CAUSE A VARIETY OF RESPIRATORY AILMENTS SOME OF THEM FATAL KEENE AND OTHER COMPANIES THAT HAVE BEEN SUED BY ASBESTOS VICTIMS AND THEIR FAMILIES CONTEND THAT THE FEDERAL GOVERNMENT SHOULD BE HELD AT LEAST PARTIALLY RESPONSIBLE IN CASES INVOLVING FORMER WORKERS AT NAVY SHIPYARDS OR FACILITIES OF PRIVATE GOVERNMENT CONTRACTORS THE FEDERAL GOVERNMENT HAS BEEN LARGELY SUCCESSFUL IN DEFEATING EFFORTS TO FORCE IT TO CONTRIBUTE TO COURT AWARDS OR SETTLEMENTS PAID BY DEFENDANT COMPANIES YESTERDAY'S 81 RULING INVOLVED A TECHNICAL DISPUTE OVER WHICH COURT PROPERLY HAD JURISDICTION OVER KEENE'S CLAIMS AGAINST THE US THE SUPREME COURT AFFIRMED THE DISMISSAL OF A KEENE SUIT FILED IN THE US COURT OF CLAIMS A SPECIAL TRIAL COURT IN WASHINGTON THAT HEARS CERTAIN SUITS AGAINST THE GOVERNMENT THE SUPREME COURT SAID A FEDERAL JURISDICTIONAL STATUTE BARRED KEENE FROM PURSUING ITS SUIT IN THE COURT OF CLAIMS BECAUSE AT THE TIME THE SUIT WAS FILED THE COMPANY HAD ANOTHER SIMILAR CLAIM PENDING AGAINST THE GOVERNMENT IN ANOTHER FEDERAL COURT IN PITTSBURGH KEENE COULD TRY TO REFILE ITS SUIT IN THE CLAIMS COURT BUT WOULD FACE SIGNIFICANT HURDLES IN A SEPARATE LEGAL ACTION KEENE RECENTLY ASKED A FEDERAL JUDGE IN BROOKLYN TO ALLOW IT TO SETTLE ALL ASBESTOS CLAIMS AGAINST IT THROUGH AN UNUSUAL CLASSACTION PROCEDURE KEENE ASKED THE JUDGE TO DECLARE THAT THE COMPANY HAS LIMITED FUNDS ABOUT 100 MILLION TO PAY DAMAGES TO THE PLAINTIFFS CURRENTLY SUING IT AS WELL AS CLAIMANTS WHO MIGHT SUE IN THE FUTURE UNDER THE PROPOSED PROCEDURE THE JUDGE ULTIMATELY WOULD HAVE TO APPROVE THE ALLOCATION OF THE MONEY KEENE CORP VS US IN OTHER ACTIONS THE HIGH COURT AGREED TO DECIDE WHETHER STATES AND CITIES MAY BAR GARBAGETREATMENT COMPANIES FROM EXPORTING TRASH TO DISPOSAL SITES OUTSIDE THEIR JURISDICTION SUCH RESTRICTIONS TYPICALLY REQUIRE THAT ALL GARBAGE WITHIN A GIVEN JURISDICTION BE DISPOSED OF AT A SITE DESIGNATED BY A STATE OR LOCAL AGENCY OFFICIALS DEFEND THE REGULATIONS AS A WAY TO PROMOTE SAFETY AND HEALTH BUT WASTETREATMENT COMPANIES HAVE CLAIMED IN LAWSUITS THAT AUTHORITIES USE THE RULES TO ENSURE A HEAVY FLOW OF GARBAGE TO FACILITIES IN WHICH THEY HAVE A FINANCIAL INTEREST SAID IT WOULD CONSIDER WHETHER DEBTORS IN FEDERAL BANKRUPTCYLAW PROCEEDINGS MAY SEEK TO UNDO FORECLOSURE SALES ON PROPERTY THEY OWNED BEFORE SEEKING COURT PROTECTION FROM THEIR CREDITORS THE JUSTICES WILL REVIEW A FEDERAL APPEALS COURT RULING THAT SAID ALLOWING BANKRUPTCY COURTS TO RESCIND PROPERLY CONDUCTED FORECLOSURE SALES WOULD FOSTER UNCERTAINTY AMONG LENDERS AND POTENTIAL PROPERTY BUYERS BFP VS RESOLUTION TRUST CORP REFUSED TO HEAR AN APPEAL BY VIRGINIA MILITARY INSTITUTE OF A LOWERCOURT RULING THAT THE STATEFUNDED COLLEGE MAY NOT OFFER SPECIALIZED MILITARY EDUCATION TO MEN WITHOUT OFFERING SIMILAR OPPORTUNITIES TO WOMEN VMI VS US 9305250082 930525 CAMBODIA'S POTEMKIN ELECTIONS BY CAIT MURPHY PHNOM PENH THE WHOLE WORLD IS ROOTING FOR CAMBODIA WHICH IS IN THE MIDST OF ITS FIRST ELECTIONS IN 21 YEARS YET THE ELECTIONS WHICH CONTINUE THROUGH FRIDAY CANNOT AND WILL NOT PROVIDE EITHER PEACE OR A REAL GOVERNMENT PART OF THE REASON FOR THIS BECOMES APPARENT IN CHUM KIRI SOUTH OF HERE IN A 6 AM RAID ON SUNDAY ACCORDING TO CHIEF CPL ROY JEWISS A BRITISH MEMBER OF THE UNITED NATIONS MILITARY FORCES ABOUT 80 KHMER ROUGE GUERRILLAS CAME DOWN FROM THE ELEPHANT MOUNTAINS TO ATTACK WORKERS SETTING UP AN ELECTION BOOTH THREE WERE KILLED INCLUDING THE VILLAGE HEADMAN AND HIS DEPUTY VILLAGERS SAY BOTH THE POLLING BOOTH AND THE POLICE STATION WERE BURNED TO SHELLS SUCH INCIDENTS ASIDE THE VOTING WHICH BEGAN SUNDAY HAS BEEN GENERALLY PEACEFUL SO FAR WITH AN OVERWHELMING TURNOUT DESPITE THE FEAR OF TERRORIST ATTACKS BY THE KHMER ROUGE THE ATMOSPHERE AT PHNOM PENH'S OLYMPIC STADIUM WAS CLOSE TO EUPHORIC AS CAMBODIANS PRESSED PAST FILIPINO POLICE OFFICERS AND SIKHS WIELDING METAL DETECTORS TO CAST THEIR TREASURED VOTES AT OTHER POLLING SITES AS WELL THE MOOD WAS ONE OF HOPE AND CHEER THIS IS THE FIRST TIME I HAVE VOTED BEAMED 54YEAROLD RICE FARMER SUM NGAE DISPLAYING PERHAPS SIX TEETH THERE ARE MANY PEOPLE HERE AND I LIKE IT BUT THE INCIDENT AT CHUM KIRI POINTS UP THE CRUCIAL QUESTIONS THAT NAG THESE ELECTIONS WHAT ABOUT THE KHMER ROUGE CAN THE ELECTIONS BRING PEACE AND DEMOCRACY TO A COUNTRY WHOSE MODERN HISTORY HAS KNOWN NEITHER THIS WAS THE HOPE OF THE OCTOBER 1991 PARIS PEACE AGREEMENTS SIGNED BY 18 COUNTRIES AS WELL AS THE STATE OF CAMBODIA THE KHMER ROUGE AND FACTIONS LED BY PRINCE SIHANOUK AND SON SANN UNDER THE TERMS OF THE ACCORD THE FOUR CAMBODIAN PARTIES AGREED TO THE FORMATION OF A SUPREME NATIONAL COUNCIL HEADED BY PRINCE SIHANOUK AS THE EMBODIMENT OF CAMBODIAN SOVEREIGNTY INDEPENDENCE AND UNITY THE UN TRANSITIONAL AUTHORITY IN CAMBODIA UNTAC WOULD MOVE IN DISARM 70 OF EACH FACTION'S FORCES REPATRIATE 370000 REFUGEES OVERSEE AND IF NECESSARY CONTROL CAMBODIA'S CIVIL ADMINISTRATION PREPARE THE COUNTRY FOR FREE AND FAIR NATIONAL ELECTIONS AND THEN LEAVE BY THE END OF 1993 THE REALITY HAS BEEN FAR DIFFERENT WHILE THE UN HAS DONE WONDERS IN VOTER REGISTRATION AND REFUGEE REPATRIATION NO ONE HAS DISARMED AND THE STATE OF CAMBODIA HAS KEPT A TIGHT GRIP ON THE BUREAUCRACY MEANWHILE THE KHMER ROUGE HAVE WALKED OUT TWO OTHER PARTIES ARE CHEATING AND THE FOURTH MAY SPLIT UP ANYTIME EVEN UNTAC'S HEAD YASUSHI AKASHI CONCEDES THAT IT HAS NOT MANAGED TO ESTABLISH A NEUTRAL POLITICAL ENVIRONMENT CONDUCIVE TO FREE AND FAIR ELECTIONS THE PREMISES OF THE PARIS ACCORD HAVE BEEN VIOLATED SO OFTEN THAT THEY HAVE SIMPLY BEEN FORGOTTEN FOR A START THE GOVERNMENT ON BEHALF OF ITS CAMBODIAN PEOPLE'S PARTY HAS CONDUCTED A WIDESPREAD CAMPAIGN OF POLITICAL INTIMIDATION THAT HAS RANGED FROM GIVING WORKERS A DAY OFF TO ATTEND POLITICAL RALLIES TO DELAYING THE BROADCAST OF ANOTHER PARTY'S TV STATION TO SHOOTING PEOPLE THE PRESSURE IS STRONGER AND STRONGER SAYS OK SEREI SOPHEAK SPOKESMAN FOR THE RIVAL LIBERAL DEMOCRATIC PARTY AND A CANDIDATE FOR A SEAT IN PREY VENG EAST OF PHNOM PENH MY STAFF REPORTED THAT VILLAGES WHERE PEOPLE USED TO GREET US OPENLY WITH SMILES NOW THEY TURN THEIR BACK TO US IT WAS OBVIOUS THOSE VILLAGERS HAD BEEN UNDER HARD PRESSURE FROM LOCAL AUTHORITIES THE MAIN CLAIM TO POWER OF THE CAMBODIAN PEOPLE'S PARTY IS THAT IT SAYS IT CAN SAVE CAMBODIA FROM THE KHMER ROUGE NO ONE MENTIONS THAT ITS TOP THREE LEADERS HUN SEN CHEA SIM AND HENG SAMRIN ARE ALL FORMER MEMBERS OF THE KHMER ROUGE AT A RALLY LAST WEEK FOR THE CPP'S MAIN RIVAL PRINCE SIHANOUK'S NATIONAL FRONT FOR AN INDEPENDENT NEUTRAL PEACEFUL AND COOPERATIVE CAMBODIA FUNCINPEC A DIFFERENT ANOMALY EMERGED LANG LONG A 53YEAROLD CIVIL SERVANT FROM A PHNOM PENH SUBURB SAID HE WOULD BE VOTING FOR FUNCINPEC LEADER PRINCE NORODOM RANARIDDH BECAUSE RANARIDDH IS SIHANOUK'S SON AND FUNCINPEC IS SIHANOUK'S PARTY WELL IT'S NOT SUPPOSED TO BE ACCORDING TO THE PARIS AGREEMENTS PRINCE NORODOM SIHANOUK IS A NEUTRAL HEAD OF STATE FUNCINPEC CAMPAIGN HEADQUARTERS SEES IT DIFFERENTLY THE GLASS CASE OUTSIDE THE BUILDING FEATURES 20 PHOTOSPRINCE SIHANOUK IS IN ALL 20 FUNCINPEC TSHIRTS FEATURE PRINCE RANARIDDH KNEELING AT HIS FATHER'S FEET THE PARTY DESCRIBES ITS PLATFORM IN ONE WORD SIHANOUKISM SO MUCH FOR NEUTRALITY AND PRINCE SIHANOUK HIMSELF HE SPENT THE CAMPAIGN IN BEIJING THE MAN JUST ABOUT EVERYONE SAYS IS THE GREAT CAMBODIAN HOPE DIDN'T SHOW IN PHNOM PENH UNTIL SATURDAY AS FOR THE KHMER ROUGE FOR THE PAST YEAR THEY HAVE DONE EVERYTHING THEY CAN TO DESTROY WHAT LITTLE IS LEFT OF THE PARIS AGREEMENTS LAST MAY THEY REFUSED TO DISARM SINCE THEN THEIR PART IN THE PEACE PROCESS HAS BEEN TO KILL UN PEACEKEEPERS VIETNAMESE RESIDENTS AND DOZENS OF CAMBODIANS THEY HAVE LEFT PHNOM PENH AND REFUSED TO TAKE PART IN THE ELECTION WE WILL NEVER ACCEPT THE RESULTS OF AN ELECTION THAT WILL GIVE LEGITIMACY TO THE VIETNAMESE OCCUPATION OF CAMBODIA SAID SPOKESMAN MAK BEN IN APRIL BECAUSE IT WILL SPELL AN END TO THE CAMBODIAN SURVIVAL THE AREAS UNDER KHMER ROUGE CONTROL HAVE BECOME NOGO AREAS FOR BOTH GOVERNMENT AND UN FORCES AN ESTIMATED 20 TO 30 OF CAMBODIANS WILL NOT BE ABLE TO CAST THEIR VOTES BECAUSE OF POLITICAL HARASSMENT OR BECAUSE THEY LIVE IN KHMER ROUGE TERRITORY THE KHMER ROUGE HAVE IN EFFECT BECOME A NATION APART IN TERMS OF THE TECHNICAL STRUCTURE SURE THIS WILL BE THE BEST ELECTION CAMBODIANS HAVE EVER SEEN UNTAC HAS REGISTERED 20 POLITICAL PARTIES SECURED 1430 POLLING SITES AND TRAINED 50000 CAMBODIAN POLL ATTENDANTS IT HAS MADE ELABORATE ARRANGEMENTS FOR TAMPERPROOF BALLOT BOXES AND HAS EVEN FLOWN IN INVISIBLE INK FROM CANADA TO MARK VOTERS' FINGERS AND ENSURE THAT NO ONE VOTES TWICE ALL THIS IS EVIDENCE OF THE SERIOUSNESS WITH WHICH UNTAC REGARDS ITS MANDATE THE CAMPAIGN WAS A GREAT SUCCESS SAID MR AKASHI ON THURSDAY THE BASIC MINIMUM CONDITIONS FOR AN ELECTION ARE THEREFORE IN PLACE BUT ELECTIONS ARE NOT SUPPOSED TO BE MERELY FEATS OF LOGISTICAL PROWESS IN CAMBODIA THE POINT IS TO ESTABLISH A LEGISLATURE THAT CAN GOVERN THE COUNTRY KEEP IT TOGETHER AND MAKE PEACE IT IS IN THIS SENSE THAT THESE LOOK LIKE POTEMKIN ELECTIONS A WONDERFUL DISPLAY THAT HIDES A DISMAL REALITY STILL THE ELECTIONS GRIND FORWARD UNDETERRED BY THE RUDE REALITIES THAT HAVE INTRUDED IT'S IMPOSSIBLE TO QUESTION THE GOODWILL AND HUMANITARIAN ARDOR THAT HAVE GONE INTO THIS EFFORT OR THE DESPERATE HOPE WITH WHICH CAMBODIANS THEMSELVES REGARD THE ELECTION THIS IS CAMBODIA'S CHANCE SAYS ONE CYCLO DRIVER IT'S NOW OR NEVER NOW OR NEVER FOR WHAT THE DOGGED DETERMINATION TO HOLD THE ELECTIONS SOME WAY SOMEHOW HAS BLOCKED SERIOUS CONSIDERATION OF WHAT COMES AFTER OTHER THAN THE VAGUE HOPE THAT AID MONEY WILL BE PUMPED IN INDEFINITELY TOWARD SOME FUTURE DATE WHEN CAMBODIA MIRACULOUSLY RIGHTS ITSELF REASON AND HISTORY POINT TO A GRIMMER CONCLUSION MS MURPHY IS EDITORIAL PAGE EDITOR OF THE ASIAN WALL STREET JOURNAL 9305250081 930525 DIVIDEND NEWS ATLANFED BANCORP INC ATLANFED BANCORP INC DIRECTORS SAID THEY INTEND TO INCREASE THE QUARTERLY DIVIDEND 125 FOLLOWING A 5FOR4 STOCK SPLIT THE SPLIT IS TO BE PAID JUNE 25 TO STOCK OF RECORD JUNE 8 THE BALTIMORE BANKING COMPANY SAID IT INTENDS TO PAY QUARTERLY DIVIDENDS OF NINE CENTS A SHARE ON THE SPLIT SHARES THE COMPANY CURRENTLY PAYS 10 CENTS QUARTERLY ON PRESPLIT SHARES 9305250080 930525 ROHR TO CLOSE ASSEMBLY PLANT CHULA VISTA CALIF ROHR INC SAID IT WILL PERMANENTLY CLOSE ITS COMPOSITE BONDING AND FINAL ASSEMBLY PLANT IN HAGERSTOWN MD OVER THE NEXT 12 MONTHS THE PLANT WHICH EMPLOYS 380 PEOPLE WAS BOUGHT IN 1987 FROM FAIRCHILD INDUSTRIES INC ROHR SAID IT NEEDS TO REDUCE MANUFACTURING CAPACITY IN THE CURRENT COMMERCIAL AEROSPACE ENVIRONMENT IT SAID WORK PERFORMED AT THE PLANT WILL BE MOVED TO OTHER ROHR FACILITIES ROHR MAKES COMPONENTS FOR COMMERCIAL AND MILITARY AIRCRAFT 9305250079 930525 CBOT IS ACCUSED BY CFTC OVER FALL OF STOTLER GROUP BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE COMMODITY FUTURES TRADING COMMISSION FILED A COMPLAINT AGAINST THE CHICAGO BOARD OF TRADE ALLEGING THE CBOT WAS LAX IN RESPONDING TO THE COLLAPSE OF THE DEFUNCT COMMODITY TRADING FIRM STOTLER GROUP INC THE COMPLAINT WHICH WILL BE TRIED BY AN ADMINISTRATIVE LAW JUDGE SAYS THE CHICAGO FUTURES EXCHANGE FAILED TO PROMPTLY NOTIFY THE CFTC OF FINANCIAL PROBLEMS AT STOTLER AND FAILED TO ENFORCE ITS OWN RULES GOVERNING HOW MUCH CAPITAL A COMMODITY FIRM MUST HAVE TO DO BUSINESS AN EXCHANGE HAS OBLIGATIONS TO ENFORCE ITS RULES SAID DENNIS KLEJNA CFTC ENFORCEMENT DIRECTOR THEY DIDN'T DO THAT THEY SHOULD HAVE ENFORCED THEIR OWN RULES BY TAKING SOME DISCIPLINARY ACTION SOONER AND THEY SHOULD HAVE NOTIFIED US OF WHAT WAS GOING ON SEPARATELY THE CFTC FILED ADMINISTRATIVE COMPLAINTS AGAINST STOTLER'S FORMER ACCOUNTING FIRM COOPERS & LYBRAND AND THREE FORMER PRINCIPALS IN STOTLER THOMAS M EGAN THOMAS F KOLTER AND PHILLIP C ZARCONE STOTLER AN OLDLINE COMMODITIES FIRM THAT ONCE ENJOYED SUBSTANTIAL PRESTIGE COLLAPSED IN MID1990 AFTER FAILING TO MEET FUTURESEXCHANGE CAPITAL REQUIREMENTS CBOT CHAIRMAN PATRICK H ARBOR SAID THE EXCHANGE WOULD VIGOROUSLY CONTEST THE COMPLAINT THE CFTC IS SAYING THAT IF A MEMBER FIRM LIES TO ITS REGULATORS AND STOCKHOLDERS THE EXCHANGE IS LIABLE FOR NOT UNCOVERING THE FIRM'S FRAUD MR ARBOR SAID THIS SHOULD SEND A CHILL UP AND DOWN THE SPINE OF EVERY MEMBER OF OUR INDUSTRY HE SAID COOPERS & LYBRAND IMMEDIATELY SETTLED THE COMPLAINT THE CFTC FILED AGAINST IT BY PAYING A 500000 FINE THE LARGEST FINE EVER IMPOSED AGAINST AN OUTSIDE ACCOUNTING FIRM BY THE CFTC THE CFTC HAD ALLEGED THAT COOPERS FAILED TO AUDIT STOTLER ACCORDING TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN 1988 AND 1989 THE FIRM IS PLEASED TO HAVE THE MATTER RESOLVED A SPOKESMAN SAID MR EGAN FORMER CHIEF EXECUTIVE OFFICER OF STOTLER GROUP SETTLED THE COMPLAINT AGAINST HIM BY AGREEING NEVER TO WORK AT A COMMODITY BROKERAGE FIRM AGAIN SAID HIS ATTORNEY MATHIAS LYDON THE CFTC HAD ACCUSED MR EGAN OF FILING FALSE FINANCIAL REPORTS AND OVERSTATING STOTLER'S CAPITAL MR ZARCONE FORMER CHIEF FINANCIAL OFFICER OF STOTLER GROUP WAS ACCUSED BY THE CFTC OF THE SAME VIOLATIONS AS MR EGAN NEITHER HE NOR HIS ATTORNEY KENNETH BERG COULD BE REACHED FOR COMMENT MR KOLTER FORMER PRESIDENT OF STOTLER FUNDS INC A COMMODITY POOL OPERATOR AFFILIATED WITH STOTLER GROUP DEFRAUDED INVESTORS IN THE FIRM'S POOLS THE CFTC ALLEGED MR KOLTER COULDN'T BE REACHED 9305250078 930525 STREET'S NEW STARS SHINE IN HAZY MORTGAGEBOND SKY BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MEET THE NEW WALL STREET SUPERSTARS ONE BOASTS OF CARD COUNTING ON HIS RESUME THE OTHER CALLS HIS COLLEAGUES INMATES IN AN ASYLUM BUT THESE AREN'T DEAL MAKERS OR JUNK BOND TRADERS WHO DOMINATED WALL STREET JUST A FEW YEARS AGO TODAY'S LUMINARIES TOIL IN THE RELATIVE OBSCURITY OF THE MORTGAGE BOND MARKET THE CARD COUNTER IS HOWARD A RUBIN HE WAS HIRED BY BEAR STEARNS & CO AFTER MERRILL LYNCH & CO FIRED HIM AND TWO OTHERS BLAMING THEM FOR A 377 MILLION TRADING LOSS THE LARGEST IN WALL STREET HISTORY THE MADHOUSE DIRECTOR IS ANDREW D STONE OF DAIWA SECURITIES AMERICA THE US ARM OF THE BIG JAPANESE BROKER HIS CRAZIEST IDEA WAS TO ASK FOR 50 OF PROFITS FROM A BUSINESS THAT DIDN'T YET EXIST NOT SO CRAZY AFTER ALL LAST YEAR HE WAS PAID AS MUCH AS 15 MILLION OTHER TRADERS SAY LIKE MANY OF THE TOP MORTGAGE SECURITIES EXECUTIVES MR RUBIN AND MR STONE ARE GRADUATES OF THE LEGENDARY MORTGAGE DESK RUN BY LEWIS RANIERI AT SALOMON BROTHERS INC THEY BOTH SET OUT TO BE GREAT TRADERS SAYS MR RANIERI WHO NOW RUNS HIS OWN FIRM TODAY MR RUBIN AND MR STONE RUN TWO OF WALL STREET'S MOST PROFITABLE MORTGAGE DEPARTMENTS CREATING AND TRADING EXOTIC DERIVATIVE SECURITIES KNOWN AS COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS CMOS ARE CREATED BY CARVING UP THE CASH FLOWS FROM TRADITIONAL MORTGAGEBACKED SECURITIES INTO INDIVIDUAL BONDS KNOWN AS TRANCHES EACH WITH ITS OWN INTEREST RATE AND MATURITY CREATING AND TRADING THESE COMPLEX SECURITIES WILL REMAIN ONE OF WALL STREET'S BIGGEST MONEY MAKERS AS LONG AS INTEREST RATES STAY LOW AND THE SPREAD BETWEEN SHORTTERM AND LONGTERM RATES REMAINS WIDE TRADERS SAY EVERYONE WANTS TO BE IN MORTGAGES SAYS PETER HARRISON A WALL STREET HEADHUNTER WITH ACCESS MANAGEMENT THAT'S WHERE THE SUPERSTARS ARE MR RUBIN'S SUCCESS IS ALL THE MORE REMARKABLE GIVEN HIS PAST IN APRIL 1987 MERRILL LYNCH FIRED HIM FOR ALLEGEDLY EXCEEDING HIS MAXIMUM PERMITTED TRADING POSITION WITH A SERIES OF UNAUTHORIZED TRADES IN TWO HIGHLY VOLATILE TYPES OF CMOS MR RUBIN DECLINED TO COMMENT FOR THIS STORY BUT IN THE PAST HIS ATTORNEYS HAVE DENIED THE TRADES WERE UNAUTHORIZED MR RUBIN HONED HIS TRADING PROWESS AT POKER MARATHONS WHILE AT HARVARD BUSINESS SCHOOL IF HE HAD ONE WEAKNESS IT WAS A TENDENCY TO DOUBLE UP LOSING HANDS RECALLS ONE OF HIS CARDPLAYING PARTNERS COLUMBIA BUSINESS SCHOOL PROF BRUCE GREENWALD AS HEAD OF THE BEAR STEARNS CMO DESK MR RUBIN IS OFTEN ON THE TRADING FLOOR UNTIL PAST 9 PM UNUSUAL FOR A MANAGING DIRECTOR ASSOCIATES SAY HE HAS A NEARPHOTOGRAPHIC MEMORY A KEY ASSET FOR A TRADER OF ARCANE SECURITIES LIKE CMOS HE BOASTED OF HIS ABILITY TO COUNT CARDS ON THE RESUME HE SENT OUT AFTER BUSINESS SCHOOL ONE FORMER BEAR STEARNS EXECUTIVE RECALLS THAT DURING MR RUBIN'S NINEMONTH SUSPENSION FROM TRADING ORDERED IN 1990 BY THE SECURITIES AND EXCHANGE COMMISSION FOR THE UNAUTHORIZED TRADES MR RUBIN SHUT HIMSELF IN HIS OFFICE FOR TWO WEEKS TO MEMORIZE EVERY MORTGAGE DEAL DONE IN THAT PERIOD EVEN RIVALS PRAISE HIM HE'S MY DIRECT COMPETITION BUT HE'S THE BEST SALESMAN I HAVE EVER SEEN SAYS STEVEN B THEOBALD MANAGING DIRECTOR OF MERRILL LYNCH'S NEWISSUE CMO DESK THERE'S NO DOUBT BEAR STEARNS' MORTGAGEBOND BUSINESS HAS TAKEN OFF SINCE MR RUBIN ARRIVED THE FIRM DOESN'T BREAK OUT THE RESULTS OF ITS MORTGAGE DEPARTMENT BUT PEOPLE FAMILIAR WITH THE FIRM ESTIMATE THAT THE 350PERSON UNIT GENERATED REVENUE OF PERHAPS 500 MILLION OR ROUGHLY ONEFOURTH OF BEAR STEARNS' 18 BILLION IN REVENUE IN THE FISCAL YEAR ENDED LAST JUNE 30 BEAR STEARNS EXECUTIVES DECLINED TO COMMENT BEAR STEARNS' MORTGAGE UNDERWRITINGS HAVE BALLOONED TO 41 BILLION LAST YEAR FROM 7 BILLION IN 1988 ACCORDING TO INSIDE MORTGAGE SECURITIES A NEWSLETTER BUT UNDERWRITING TRADITIONAL CMOS WHERE THE UNDERLYING MORTGAGES ARE GOVERNMENTGUARANTEED IS A THINMARGIN BUSINESS THAT CONTRIBUTED ABOUT 80 MILLION OF THE MORTGAGE DEPARTMENT'S REVENUE LAST YEAR THE BULK OF THE BEAR STEARNS' MORTGAGE DEPARTMENT'S PROFIT COMES FROM HOLDING AND TRADING ITS HUGE INVENTORY OF MORTGAGE SECURITIES WHICH SWELLS TO AS HIGH AS 20 BILLION BEAR STEARNS HOLDS SIZABLE MARKET SHARE IN KEY NICHES SUCH AS INTERESTONLY AND PRINCIPALONLY BONDS WHICH AS THE NAMES SUGGEST ARE CMOS THAT PAY ONLY INTEREST OR ONLY PRINCIPAL RESPECTIVELY THIS ENABLED THE FIRM TO PROFITABLY MAKE MARKETS IN SECONDARY TRADING OR TRADING IN OUTSTANDING ISSUES ONE COMPETITOR ESTIMATES THAT BEAR STEARNS HOLDS 50 OF THE IO/PO MARKET AND ROUTINELY KEEPS 2 BILLION OF EACH KIND OF BOND IN INVENTORY THAT KIND OF MUSCLE MAKES BEAR STEARNS AN ENVIABLE FORCE ABLE TO PROFIT FROM MARKET OPPORTUNITIES BEFORE OTHER FIRMS CAN REACT LAST YEAR SAYS ONE INDIVIDUAL THE FIRM MADE MILLIONS IN A MATTER OF WEEKS BY SWEEPING UP 2 BILLION OF AN UNPOPULAR IO BOND STRIPPED FROM THE ENTIRE RANGE OF MATURITIES AND REPACKAGING THE CASH FLOWS INTO MORE TRADITIONAL IOS THAT WERE QUICKLY RESOLD AT A SUBSTANTIAL PROFIT BEAR STEARNS IS THE BEAST IN THE JUNGLE SAYS DAVID BRAVER OF BRAVER STERN A MONEY MANAGER WITH MORE THAN 1 BILLION IN MORTGAGEBACKED DERIVATIVE SECURITIES IF BEAR STEARNS IS A BEAST DAIWA IS THE MOUSE THAT ROARED THE US SUBSIDIARY OF DAIWA SECURITIES CO CONCENTRATES ON DEALS ITS COMPETITORS CAN'T EASILY EMULATE A STRATEGY AS LUCRATIVE FOR THE 39PERSON MORTGAGE DESK AS FOR THE FIRM IT IS MR STONE WHO CREATED DAIWA'S MORTGAGE DEPARTMENT FROM SCRATCH AND WHO NEGOTIATED THE HIGHLY LUCRATIVE PROFITSHARING AGREEMENT THE DESK SPLIT ABOUT 80 MILLION OF DAIWA'S ESTIMATED 225 MILLION REVENUE FROM MORTGAGES IN ITS 1993 FISCAL YEAR ENDED IN MARCH MR STONE WOULDN'T COMMENT ON COMPENSATION MR STONE LEFT PRUDENTIAL SECURITIES INC IN 1990 WITH A BLUEPRINT HE SHOPPED TO A NUMBER OF WALL STREET FIRMS IN RETURN FOR 50 OF NET REVENUE SINCE SCALED BACK TO ABOUT 35 MR STONE WOULD BUILD A NICHE MORTGAGE SECURITIES BUSINESS TAILORED TO A HANDFUL OF SOPHISTICATED CLIENTS ABOVE ALL HE AIMED TO CREATE A MARKET FOR SECURITIES PACKAGED FROM COMMERCIAL REAL ESTATE LOANS DAIWA ACCEPTED MR STONE'S PROPOSAL AND UNUSUAL PROFITSHARING SCHEME FROM HIS EARLIEST DAYS AS A SALOMON TRADER MR STONE WAS MORE INTERESTED IN ARCANE SECURITIES WHERE HIS ABILITY TO STRUCTURE A DEAL WAS CRITICAL ANDY ALWAYS WANTED TO WORK ON SOMETHING WHERE HE COULD DECIDE WHAT THE DEAL WAS WORTH MR RANIERI SAYS TAKE A RECENT DEAL THAT POOLED 203 MILLION OF MORTGAGES ON 61 NURSING HOMES AND CONGREGATE CARE CENTERS INTO SECURITIES DAIWA BOUGHT THE PROPERTIES LAST SPRING FROM THE RESOLUTION TRUST CORP THE GOVERNMENT'S THRIFT BAILOUT AGENCY FOR ROUGHLY 85 CENTS ON THE DOLLAR ACCORDING TO ONE ESTIMATE AND SPENT SEVEN MONTHS STRUCTURING THE DEAL KEY TO THE DEAL WAS THE CREATION OF A 146 MILLION TRANCHE WITH AN INTEREST RATE FLOATING SLIGHTLY ABOVE LIBOR THE LONDON INTERBANK OFFERED RATE PACIFIC INVESTMENT MANAGEMENT CO A BIG BOND MANAGER SNAPPED UP MOST OF THE FLOATINGRATE TRANCHE THAT MEANT THERE WOULD BE ENOUGH CASH FLOW LEFT OVER FROM THE MORTGAGES TO SET THE INTEREST RATE ON THREE SMALL SUBORDINATE PIECES NEAR 20 A LOFTY YIELD MEANT TO COMPENSATE HOLDERS FOR ABSORBING ALL THE CREDIT RISK IN THE DEAL THE PROFIT TO DAIWA AT LEAST 20 MILLION IN UNDERWRITING FEES AND INTEREST EARNED ON THE MORTGAGES IN THE INTERIM SUCCESS HAS GUARANTEED MR STONE FREE REIN FROM THE BEGINNING I WANTED TO HIRE PERSONALITY MISFITS AND EGOCENTRICS HE SAYS I WANTED TO FOSTER A FEELING OF THE INMATES RUNNING THE ASYLUM INDEED DAIWA'S MORTGAGE DEPARTMENT HAS A UNIQUE CHARACTER MR STONE RECENTLY CHALLENGED A CMO TRADER TO A ROLL OF THE DICE TO DETERMINE WHO SHOULD GET CREDIT FOR A 1 MILLION PROFIT FOR THE FIRM MR STONE WHO HELD THE KEY BOND IN HIS FIRM TRADING ACCOUNT OR THE DAIWA TRADER WHO RESOLD IT AT A 1 MILLION PROFIT MR STONE WHO LOST WON'T COMMENT ON THE INCIDENT AT DAIWA LULLS IN TRADING ARE SOMETIMES FILLED WITH BETS ON THE EATING CAPACITY OF BOND SALESMAN SEAN BAILEY SHORTLY AFTER BONUSES WERE DISTRIBUTED LAST MONTH CUSTOMERS AND TRADERS STAKED SOME 8000 THAT MR BAILEY WOULDN'T BE ABLE TO EAT 24 HAMBURGERS AND A QUART OF ICE CREAM IN ONE SITTING ACCORDING TO A PERSON PRESENT MR BAILEY WON I JUST DO IT FOR FUN MR BAILEY SAYS MR BAILEY HAS BEEN DEFEATED ONLY ONCE WHEN HE ACCEPTED A BET INVOLVING A GIANT ORDER OF PANCAKES 9305250077 930525 INTERNATIONAL PROCORDIA UNIT SAYS IT TAKES PARTIAL BLAME IN CONTAMINATION CASE A WALL STREET JOURNAL NEWS ROUNDUP SWEDISH DRUG COMPANY KABI PHARMACIA AB PART OF PROCORDIA AB PARTIALLY ACCEPTED RESPONSIBILITY FOR HAVING CONTAMINATED FOUR HEMOPHILIACS WITH THE AIDS VIRUS IN 1985 THE HEMOPHILIACS USED THE COMPANY'S PRODUCT PRECONATIV WHICH IS ALSO SOLD IN DENMARK AND ITALY ALL FOUR PATIENTS WERE INFECTED BY BLOOD PLASMA FROM AN HIVPOSITIVE BLOOD DONOR VICE PRESIDENT LARS INGELMARK SAID KABI HAD BEEN AT FAULT BUT NOTED THAT AN INQUIRY COMMISSION SET UP BY THE COMPANY FOUND NO NEGLIGENCE AND NO INDICATION THAT PROFITS WERE PUT BEFORE PATIENTS A REPORT BY THE NATIONAL HEALTH DEPARTMENT IS EXPECTED IN TWO WEEKS KABI PHARMACIA HAD DISREGARDED A REPORT FROM OUTSIDE VIRUS EXPERTS IN AUGUST 1985 THAT SAID FILTERING MIGHT NOT BE SUFFICIENT TO ENSURE THE PLASMA WAS FREE OF THE AIDS VIRUS THE FOUR HIVINFECTED HEMOPHILIACS HAVE EACH RECEIVED 350000 SWEDISH KRONOR 48000 IN COMPENSATION UNDER A MANDATORY SWEDISH HEALTH CARE INSURANCE FUND A KABI EXECUTIVE SAID THE COMPANY DOESN'T FACE MAJOR ADDITIONAL FINANCIAL LIABILITIES ALTHOUGH HE SAID DISCUSSIONS ABOUT A FURTHER VOLUNTARY FINANCIAL SETTLEMENT ON HUMANITARIAN GROUNDS ARE BEING HELD WITH THE FOUR PATIENTS AND THEIR LAWYERS THE COMPANY'S INQUIRY COMMISSION HEADED BY STOCKHOLM COURT OF APPEAL JUSTICE THORSTEN CARS SAID KABI PHARMACIA SIMPLY TRUSTED ITS OWN TESTING METHODS TOO MUCH 9305250076 930525 WHO'S NEWS SONY COMBINES US OPERATIONS UNDER SCHULHOF BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SONY CORP CONSOLIDATED ITS U S ELECTRONICS AND ENTERTAINMENT OPERATIONS UNDER THE SONY CORP OF AMERICA BANNER AND NAMED MICHAEL P SCHULHOF PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE UNIT MR SCHULHOF ALSO BECOMES THE ONLY US EXECUTIVE TO HAVE SUCH BROAD RESPONSIBILITIES IN A JAPANESEOWNED COMPANY THE MOVE FOR THE FIRST TIME BRINGS ALL OF SONY'S FARFLUNG US OPERATIONS UNDER ONE CORPORATE UMBRELLA THAT ACCOUNTS FOR 135 BILLION OF SONY'S WORLDWIDE 344 BILLION IN SALES IT ALSO VASTLY EXPANDS THE CLOUT OF MR SCHULHOF ONE OF TWO NONJAPANESE SONY EXECUTIVES ON THE COMPANY'S BOARD MR SCHULHOF 50 YEARS OLD IS A COMPANY VETERAN WHO STARTED HIS CAREER AS A PHYSICIST AND ROSE THROUGH THE SONY RANKS IN THE US HE HAS BEEN OVERSEEING THE COMPANY'S WORLDWIDE FILMED ENTERTAINMENT AND RECORD OPERATIONS AND HE WILL CONTINUE TO DO SO MR SCHULHOF'S APPOINTMENT FOLLOWS THE DEPARTURE ANNOUNCED IN FEBRUARY OF RON SOMMER AS PRESIDENT OF THE CONSUMERELECTRONICS OPERATIONS THOSE OPERATIONS FORMERLY FELL UNDER SONY CORP OF AMERICA WHILE THE ENTERTAINMENT AND ELECTRONIC PUBLISHING OPERATIONS FELL UNDER SONY SOFTWARE CORP OF WHICH MR SCHULHOF WILL REMAIN PRESIDENT MR SOMMER WAS TRANSFERRED TO HEAD SONY'S EUROPEAN OPERATIONS A REPLACEMENT HASN'T BEEN NAMED AND MR SCHULHOF DECLINED COMMENT ON WHEN OR IF HE WILL NAME A NEW ELECTRONICS CHIEF UNDER HIM THE ENTERTAINMENT OPERATIONS THAT REPORT TO MR SCHULHOF INCLUDE THE SONY PICTURES ENTERTAINMENT UNIT RUN BY ITS CHAIRMAN AND CHIEF EXECUTIVE PETER GUBER AND THE SONY MUSIC ENTERTAINMENT UNIT RUN BY ITS PRESIDENT TOMMY MOTTOLA MR SCHULHOF HAS BEEN CHAIRMAN OF THE SONY MUSIC UNIT FOR THREE YEARS SINCE THE DEPARTURE OF WALTER YETNIKOFF AND HE WILL CONTINUE THAT ROLE HE HAS ALSO OVERSEEN SONY'S BURGEONING ELECTRONIC PUBLISHING AND NEWMEDIA DEVELOPMENT UNDER MR SCHULHOF SONY IS UNITING TWO OF ITS OPERATING UNITS THAT HAVE HAD STRAINED RELATIONS IN THE PAST EVEN THOUGH SONY BOUGHT ITS ENTERTAINMENT COMPANIES TO SEEK SYNERGIES WITH ITS HARDWARE OPERATIONS MR SOMMER AND HIS ELECTRONICS EXECUTIVES WERE OFTEN CRITICAL OF THE VAST SUMS SPENT BY SONY ON ITS HOLLYWOOD OPERATIONS AND THERE WAS A CULTURAL GAP BETWEEN THE MORE PROSAIC HARDWARE OPERATIONS AND THE GLAMOROUS ENTERTAINMENT UNITS MR SCHULHOF SAID IN AN INTERVIEW THAT HE HOPES TO BRING THE TWO SIDES CLOSER TOGETHER BY EXPRESSING AN ATTITUDE THAT ALL SIDES OF THE COMPANY ARE IMPORTANT HE ADDED IN THE PAST PEOPLE HAVE BECOME TOO PREOCCUPIED WITH THEIR OWN PRIORITIES SONY'S ELECTRONICS SALES TO CONSUMERS AND BUSINESS STILL MAKE UP 80 OF TOTAL REVENUE BUT IN FISCAL 1993 ENDED MARCH 31 SONY'S WORLDWIDE SOFTWAREGROUP EARNINGS ACCOUNTED FOR 499 OF SONY'S TOTAL OPERATING PROFIT SONY'S ELECTRONICS SALES HAVE SUFFERED IN EUROPE BUT HAVE BEEN RELATIVELY STRONG IN THE US WHERE IT HAD FISCAL 1993 SALES OF 65 BILLION UP 12 FROM FISCAL 1992 MR SCHULHOF WHO HAS A DOCTORATE IN SOLIDSTATE PHYSICS HAS BEEN AT THE COMPANY FOR TWO DECADES AND HAS HELPED TO LEAD THE INTRODUCTION TO THE US OF DIGITAL AUDIO TECHNOLOGY AND COMPACT DISKS IN THE MID1980S HE SPEARHEADED SONY'S SEARCH FOR ENTERTAINMENT ACQUISITIONS AND ITS SUBSEQUENT PURCHASE OF CBS RECORDS AND COLUMBIA PICTURES ENTERTAINMENT INC WHICH INCLUDES COLUMBIA PICTURES AND TRISTAR PICTURES MR SCHULHOF'S APPOINTMENT COMES AS SONY STRUGGLES TO ESTABLISH WHAT IT HOPES WILL BE NEW STANDARDS IN CONSUMER ELECTRONICS SUCH AS THE DIGITAL RECORDING TECHNOLOGY CALLED MINIDISC AND TO SECURE A LEADING PLACE IN THE MULTIMEDIA WORLD OF THE FUTURE MR SCHULHOF ALSO SAID HIS PROMOTION IS A SYMBOL OF SONY'S WISH TO INTEGRATE ENTERTAINMENT INTO ITS CORE BUSINESS ONE PREVIOUS EXAMPLE OF INTEGRATION HE SAID WAS THE LAUNCH OF A NEW DIGITAL SOUND SYSTEM FOR MOVIE THEATERS CALLED SONY DYNAMIC DIGITAL SOUND WHICH SOME THEATERS PLAYING COLUMBIA'S LAST ACTION HERO WILL USE MR SCHULHOF SAID THE MOVIETHEATER SYSTEM DREW ON THE VERY DATACOMPRESSION TECHNOLOGY WORKED OUT BY SONY ENGINEERS IN THE CREATION OF ITS MINIDISC PORTABLE STEREOS HE SAID SONY WILL BUILD ON SEVERAL INVESTMENTS HE ENGINEERED SUCH AS THOSE IN DIGITAL CABLE RADIO AND IN GENERAL MAGIC INC THE SILICON VALLEY STARTUP DEVELOPING A STANDARD FOR WIRELESS PERSONAL COMMUNICATORS IN THE CASE OF GENERAL MAGIC MR SCHULHOF SAID SONY WILL BENEFIT FROM DEVELOPING BOTH THE HARDWARE AND SOFTWARE FOR THE HANDHELD COMPUTERS DUBBED PERSONAL DIGITAL ASSISTANTS BY SOME MR SCHULHOF IS KNOWN AS DIPLOMATIC BUT HE DOESN'T EQUIVOCATE ON PROTECTING SONY'S INTERESTS WHEN INTERNATIONAL BUSINESS MACHINES CORP AND BLOCKBUSTER ENTERTAINMENT CORP RECENTLY SAID THEY HAD A PLAN TO MAKE CUSTOMIZED COMPACT DISKS IN RECORD STORES MR SCHULHOF LED THE LOUD OPPOSITION FROM MUSIC LABELS HE REFERRED TO THE PLAN AS PIRACY AND SAID SONY WON'T PARTICIPATE ALSO UNDER HIS DIRECTION SONY MUSIC HAS BEEN THE ONLY MAJOR MUSIC LABEL TO DECLINE TO PUT OUT MUSIC FOR THE OTHER NEW DIGITAL RECORDING SYSTEM CALLED DIGITAL COMPACT CASSETTE OR DCC DEVELOPED BY SONY RIVALS PHILIPS ELECTRONICS NV AND MATSUSHITA ELECTRIC INDUSTRIAL CO MR SCHULHOF SAID SONY STILL HAS NO PLANS FOR PUTTING MUSIC ON DCC MR SCHULHOF IN HIS NEW POST ALSO SUCCEEDS KEN IWAKI WHO HAS BEEN NAMED TO PRESIDE OVER SONY'S NEW SONY GROUP INTERNATIONAL EXECUTIVE COMMITTEE FORMED TO COORDINATE SONY'S GLOBAL OPERATIONS MR SCHULHOF WILL BE A MEMBER OF THAT COMMITTEE SONY CORP OF AMERICA WILL HAVE TWO MAJOR SUBSIDIARIES SONY SOFTWARE CORP INCLUDING THE ENTERTAINMENT UNITS AND SONY ELECTRONICS CORP WHICH INCLUDES SONY'S US ELECTRONICS AND RECORDINGMEDIA MANUFACTURING AND MARKETING OPERATIONS REPORTING TO MR SCHULHOF AT SONY ELECTRONICS CORP ARE JOHN BRIESCH DEPUTY PRESIDENT OF SALES AND MARKETING KUNI ANDO PRESIDENT OF SONY ENGINEERING AND MANUFACTURING OF AMERICA AND AKIHIKO NAKAMURA CHIEF FINANCIAL AND ADMINISTATIVE OFFICER OF THE ELECTRONICS UNIT 9305250075 930525 MARTIN LAWRENCE SELLS UNIT VAN NUYS CALIF MARTIN LAWRENCE LIMITED EDITIONS INC SAID IT COMPLETED THE SALE OF ITS THINK BIG INC UNIT FOR 820000 IN CASH AND SECURITIES TO AN OFFICER AND DIRECTOR OF THE COMPANY THE RETAILER OF POPULAR ART SAID THE TRANSACTION INCLUDED 500000 CASH PAID AT CLOSING AND TWO PROMISSORY NOTES FOR THE BALANCE MARTIN LAWRENCE LIMITED EDITIONS SAID AT THE SAME TIME THAT IT REPAID 19 MILLION IN BANK DEBT THAT WAS DUE THINK BIG WHICH MAKES LARGE MODELS OF SUCH EVERYDAY ITEMS AS KETCHUP BOTTLES AND CRAYONS WAS SOLD TO JACK A ROUNICK A DIRECTOR VICE PRESIDENT AND GENERAL COUNSEL OF MARTIN LAWRENCE LIMITED EDITIONS MR ROUNICK RESIGNED THOSE POSITIONS AT THE TIME OF THE PURCHASE A COMPANY SPOKESMAN SAID 9305250074 930525 POLITICS & POLICY DOWNHOME FOLKS IN ARKANSAS BEGIN TO WORRY ABOUT THEIR FAVORITE SON'S WASHINGTON WOES BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL LITTLE ROCK ARK PEOPLE WHO KNOW BILL CLINTON BEST HIS FRIENDS HERE IN ARKANSAS ARE STARTING TO WORRY GET SOME SLEEP HONEY ADVISES BROWNIE LEDBETTER A LOBBYIST FOR LIBERAL CAUSES WHO HAS FOUGHT WITH AND AGAINST MR CLINTON FOR YEARS I WARNED HIM ABOUT BEING TOO NICE IN WASHINGTON SAYS DEMOCRATIC STATE SEN JERRY BOOKOUT FROM JONESBORO AN OLD ALLY HE'S BEING BULLIED BY THAT BOB DOLE HE NEEDS TO GET TOUGH NOW EVEN SOME LEADING ARKANSAS REPUBLICANS WORRY THAT THE STATE'S FIRST PRESIDENT IS GETTING OFF TO SUCH A ROCKY START HE MIGHT EMBARRASS THE FOLKS BACK HOME WE EXPECTED HE WOULD GIVE US A PROGRESSIVE IMAGE SAYS ASA HUTCHINSON THE GOP STATE CHAIRMAN WE WANT THE COUNTRY TO IDENTIFY ARKANSAS AS THE STATE THAT GAVE THE NATION BILL CLINTON INSTEAD OF THE STATE THAT GAVE US THE LITTLE ROCK SCHOOL CRISIS IT ALL REMINDS SOME PEOPLE OF MR CLINTON'S CALAMITOUS FIRST TERM IN OFFICE 14 YEARS AGO A TERM THAT ENDED WITH HIS DEFEAT FOR REELECTION IT'S UNCOMFORTABLY REMINISCENT OF THAT FIRST TERM SAYS SEN BOOKOUT HE'S REPEATING THOSE ERRORS SAYS REPUBLICAN NATIONAL COMMITTEEMAN SHEFFIELD NELSON MR CLINTON'S MOST OUTSPOKEN CRITIC IN ARKANSAS IT'S LIKE IT WAS SOME KIND OF DEATH WISH ARKANSANS OFFER SEVERAL THEORIES TO EXPLAIN MR CLINTON'S STUMBLING START IN WASHINGTON MOST FREQUENTLY HEARD IS THE COMPLAINT HE IS TRYING TO DO TOO MUCH AT ONCE THE BASIS FOR MRS LEDBETTER'S ADVICE TO GET MORE SLEEP ARKANSANS ALSO MAKE THE POINT THAT POLITICS IN LITTLE ARKANSAS IS A FAR CRY FROM THE ROUGH AND TUMBLE OF NATIONAL POLITICS IN WASHINGTON AND THAT MR CLINTON MAY HAVE FAILED TO APPRECIATE THE DIFFERENCE ARKANSAS THEY SAY DOESN'T HAVE A BOB DOLE AND THE LEGISLATURE DOESN'T HAVE THE FILIBUSTER ARKANSAS DOESN'T EVEN HAVE MUCH OF A TWOPARTY SYSTEM REPUBLICANS ARE OUTNUMBERED 101 IN THE LEGISLATURE AND THEY HAVE NEVER PUSHED A PARTY AGENDA IN ARKANSAS POLITICS IS PERSONAL I'VE PASSED 90 OF THE BILLS I'VE INTRODUCED BOASTS GOP STATE SEN JIM KEET IN WASHINGTON MR CLINTON IS ACCUSED OF LACKING FOCUS A PROBLEM HE GRAPPLED WITH IN ARKANSAS AS WELL HE BECAME MUCH MORE FOCUSED WHEN HE RETURNED TO OFFICE TWO YEARS AFTER HIS 1980 REELECTION DEFEAT A FACT THAT MRS LEDBETTER ATTRIBUTES TO HIS CHIEF OF STAFF BETSEY WRIGHT WHO IS NOW A WASHINGTON LOBBYIST SHE TOLD HIM HE COULD HAVE THREE ISSUES AND SHE MADE HIM STICK TO IT BETSEY WAS REALLY UGLY TO BILL PEOPLE HERE FEAR THERE'S NO ONE IN THE WHITE HOUSE NOW WITH THE NERVE TO GET UGLY WITH THE PRESIDENT OF THE UNITED STATES YET UNLIKE ARKANSAS WHERE MR CLINTON COULD TAKE HIS ELECTORAL PUNISHMENT SUFFER THROUGH A COUPLE YEARS IN EXILE AND THEN STAGE A TRIUMPHANT RETURN TO OFFICE HE'S HIGHLY UNLIKELY TO GET ANOTHER CRACK AT THE WHITE HOUSE IF HE MESSES UP THIS ONE ONLY ONE PRESIDENT LOST REELECTION AND THEN WON AGAIN FOUR YEARS LATER GROVER CLEVELAND AND THAT WAS A CENTURY AGO IN MR CLINTON'S FIRST GUBERNATORIAL TERM WHICH BEGAN IN JANUARY 1979 HE SURROUNDED HIMSELF WITH WHAT MR NELSON CALLS LONGHAIRED HIPPIES YOUNG LAWYER FRIENDS OF MR CLINTON'S WHO CRITICS SAID DIDN'T UNDERSTAND GOVERNMENT WHAT PEOPLE OBJECTED TO WAS HE DIDN'T LISTEN ENOUGH TO LEGISLATORS AND ORDINARY VOTERS SAYS DEMOCRAT CHARLIE CHAFFIN OF BENTON THE ONLY WOMAN SERVING IN THE STATE SENATE THEN TOO THERE WAS THE FACT THAT MRS CLINTON CONTINUED TO CALL HERSELF HILLARY RODHAM MRS LEDBETTER REMEMBERS ATTENDING AN OPEN HOUSE AT MRS CLINTON'S LAW OFFICE AND WATCHING HER GREET THE GUESTS WEARING A HILLARY RODHAM NAME TAG ONE OF THEM MRS LEDBETTER SAYS TURNED BEET RED SHOVED HIS FINGER INTO THE NAME TAG AND HISSED THAT'S NOT YOUR REAL NAME ONE POLICY QUESTION DID HURT IT WAS MR CLINTON'S ILLJUDGED DECISION TO RAISE FEES FOR AUTO AND TRUCK TAGS ARKANSANS TAKE THEIR VEHICLES SERIOUSLY AND THEY EXPECT AFFORDABLE TAG FEES THEY WERE OUTRAGED WHEN MR CLINTON RAN FOR REELECTION IN 1980 HIS ADVISERS TOLD HIM THAT VOTERS IN ARKANSAS WANTED HIM TO WIN BY A SINGLE VOTE TO TEACH HIM A LESSON IN HUMILITY BUT IF THAT'S WHAT THE VOTERS HAD IN MIND THEY MISCALCULATED HE LOST BY 32000 VOTES IT IS BECAUSE MR CLINTON SEEMED TO HAVE LEARNED IMPORTANT LESSONS FOLLOWING THAT DEFEAT THAT ARKANSANS HAVE SO MUCH TROUBLE FIGURING OUT WHY HE IS SO MIRED IN DIFFICULTY NOW THEY REMEMBER HE CAME BACK IN 1982 A CHANGED POLITICIAN THE LONGHAIRED HIPPIES DISAPPEARED HILLARY RODHAM EMERGED AS HILLARY CLINTON STARTING IN HIS SECOND TERM SAYS DEMOCRATIC REP EDWARD F THICKSTEN FROM ALMA HE BECAME A HANDSON GOVERNOR ONE OF THE BEST CONSENSUS BUILDERS I'VE EVER SEEN EVEN REPUBLICANS STAND IN AWE OF HIS POLITICAL SKILLS STATE SEN KEET WAS A REPRESENTATIVE IN 1989 WHEN MR CLINTON AND THE STATE LEGISLATURE WERE TRYING TO FIND A WAY TO DESEGREGATE THE LITTLE ROCK SUBURBS MR KEET WAS IN TAIWAN WHEN THE CRUCIAL VOTES WERE CAST HE GOT ME ON THE PHONE IN THE MIDDLE OF THE NIGHT IN TAIWAN AND TOLD ME I WAS THE SWING VOTE WE TALKED FOR HOURS AND I KEPT VOTING ALL NIGHT LONG BY SENDING FAXES TO LITTLE ROCK I DON'T KNOW IF IT WAS LEGAL OR NOT BUT NOBODY EVER SAID IT WASN'T THE BILL WITH MR KEET'S CRUCIAL HELP PASSED THOUGH MR CLINTON MADE HIS REPUTATION HERE AS A CONCILIATOR AND A COMPROMISER HE DID GET TOUGH EVERY NOW AND AGAIN HIS MEANEST OPPONENT DURING THE TIME HE WAS GOVERNOR WAS A DEMOCRAT STATE SEN NICK WILSON OF POCAHONTAS THEY LOCKED HORNS MOST FAMOUSLY OVER ETHICS LEGISLATION AND MR CLINTON WON BY GOING OVER MR WILSON'S HEAD AND PUTTING THE ISSUE ON THE BALLOT WHERE IT CARRIED MR WILSON LEARNED HIS LESSON TOO I THINK BILL CLINTON DID A GREAT JOB DOWN HERE HE SAYS AS IF RECITING A LITANY I THINK HE'S GOING TO DO A GREAT JOB UP THERE MR CLINTON ALSO TWISTED ARMS TO GET HIS HALLMARK EDUCATION LEGISLATION PASSED PEOPLE WHO KNOW MR CLINTON IN ARKANSAS AND THEIR NAME IS LEGION TEND TO THINK HE IS SMART ENOUGH AND CANNY ENOUGH TO TURN HIMSELF AROUND IN WASHINGTON HE LEARNS FROM HIS LESSONS GOP CHAIRMAN HUTCHINSON SAYS IT'S HARD TO IMAGINE HIS FOLLOWING THIS PATTERN FOR VERY LONG BUT THERE'S A NAGGING SUSPICION JUST AN UNDERCURRENT NOW THAT MR CLINTON IS TAKING HIMSELF TOO SERIOUSLY IN HIS HEADY NEW ROLE HIS FRIENDS INSIST THEY NEVER SAW SIGNS OF ELITISM IN MR CLINTON'S BEHAVIOR WHEN HE WAS THEIR GOVERNOR NOTHING ON THE ORDER OF HOLDING AIR FORCE ONE ON THE GROUND TO GET AN EXPENSIVE HAIRCUT MANY ARE WAITING TO SEE WHAT HE DOES ABOUT A SUMMER WHITE HOUSE SEVERAL PROPERTIES HAVE BEEN OFFERED TO HIM AROUND THE STATE ONE OF THEM REPORTEDLY IS PART OF A POSH DEVELOPMENT AT THE CHENAL COUNTRY CLUB OUTSIDE LITTLE ROCK ANOTHER IS SAID TO BE ON LAKE HAMILTON IN FUNKY LITTLE HOT SPRINGS THE STATE'S LEADING RESORT WHERE MR CLINTON GREW UP AND WHERE HIS MOTHER VIRGINIA KELLY STILL LIVES IT'S A TEST OF WHAT KIND OF PERSON BILL CLINTON HAS BECOME A LOT OF FOLKS HERE WOULD FEEL BETTER ABOUT THEIR OLD FRIEND IF HE CHOSE HOT SPRINGS 9305250073 930525 INTERNATIONAL BANK OF ENGLAND FACES DAMAGES SUIT OVER BCCI LONDON THE BANK OF ENGLAND LOOKS SET TO RETURN TO THE LAW COURTS IN CONNECTION WITH THE COLLAPSE OF BANK OF CREDIT & COMMERCE INTERNATIONAL BUT THIS TIME AS A DEFENDANT TOUCHE ROSS THE ACCOUNTING FIRM APPOINTED LIQUIDATORS OF BCCI FOLLOWING ITS 1991 COLLAPSE SAID A WRIT HAD BEEN ISSUED ON BEHALF OF A SMALL NUMBER OF BCCI DEPOSITORS CLAIMING DAMAGES FROM THE BANK OF ENGLAND THE CENTRAL BANK OF THE UNITED KINGDOM TOUCHE ROSS DIDN'T IDENTIFY THE PLAINTIFFS OR DETAIL THE WRIT'S CONTENTS BUT IT SAID THE SUIT RESULTED FROM LEGAL ADVICE THAT DEPOSITORS MAY BE ENTITLED TO CLAIM DAMAGES FROM THE BANK OF ENGLAND ON GROUNDS THAT IT DIDN'T PROPERLY FULFILL ITS ROLE AS REGULATOR OF BCCI UNDER BRITISH LAW TOUCHE ROSS IS INVITING OTHER DEPOSITORS TO JOIN THE ACTION A SPOKESMAN FOR THE BANK OF ENGLAND SAID THE BANK COULDN'T COMMENT UNTIL IT HAD SEEN DETAILS OF THE CLAIM THE BANK OF ENGLAND PRECIPITATED BCCI'S 14 BILLION COLLAPSE WHEN IT LED AN INTERNATIONAL SEIZURE IN JULY 1991 INVOLVING REGULATORS IN A NUMBER OF COUNTRIES INCLUDING THE US FRANCE AND LUXEMBOURG 9305250072 930525 US TRAILS SEEKS TO AMEND NOTE DALLAS US TRAILS INC SAID THAT IT IS SEEKING TO AMEND THE TERMS OF A 137 MILLION SECURED NOTE INDENTURE AND THAT IF THE CHANGE IS SUCCESSFUL IT WOULD PURCHASE THE REMAINING SHARES OF THOUSAND TRAILS INC IT DOESN'T ALREADY OWN US TRAILS WHICH EARLIER HAD SAID IT MIGHT DEFAULT ON THE NOTES IN SEPTEMBER SAID IT WANTS TO RELAX SOME OF THE FINANCIAL REQUIREMENTS IN THE CURRENT NOTE INDENTURE PRECISE TERMS OF THE PROPOSED CHANGE HAVEN'T BEEN MADE COMPANY OFFICIALS SAID IF NOTE HOLDERS AGREE TO THE CHANGE US TRAILS WOULD PROPOSE TO ACQUIRE THE REMAINING SHARES OF THOUSAND TRAILS WHICH OWNS AND OPERATES MEMBERSHIP CAMPGROUNDS FOR 110 A SHARE US TRAILS A HOLDING COMPANY OWNS 80 OF THOUSAND TRAILS 9305250071 930525 MONDAY'S MARKETS LONG BONDS RISE STOCKS ARE MIXED REPORT OF FED'S STAND ON SHORTTERM RATES BOOSTS 30YEAR ISSUE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS BID 30YEAR BOND PRICES HIGHER AMID REPORTS THAT THE FEDERAL RESERVE IS PREPARED TO INCREASE SHORTTERM INTEREST RATES IF INFLATION CONTINUES TO ACCELERATE STOCK PRICES WERE MIXED AND THE DOLLAR ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE CLIMBED ABOUT 1/2 POINT OR ABOUT 5 FOR EACH 1000 FACE AMOUNT TO YIELD 7 ALTHOUGH SHORTERTERM GOVERNMENT BONDS FELL MODESTLY THE DOW JONES INDUSTRIAL AVERAGE GAINED 1495 POINTS TO 350778 WITH MOST OF THE ADVANCE COMING JUST BEFORE THE CLOSE STANDARD & POOR'S 500STOCK INDEX ROSE 216 TO 44800 AND THE NASDAQ COMPOSITE INDEX EDGED UP 040 TO 69469 BUT DECLINING ISSUES OUTNUMBERED ADVANCERS ON THE NEW YORK STOCK EXCHANGE ANALYSTS SAID BONDMARKET INVESTORS REACTED POSITIVELY TO A REPORT YESTERDAY IN THE WALL STREET JOURNAL THAT THE FEDERAL RESERVE IS LEANING TOWARD HIGHER SHORTTERM INTEREST RATES THE NEWS SPARKED A FLURRY OF BUYING OF 30YEAR BONDS THE LOGIC IS THAT IF THE FED TIGHTENS THE LONG END BENEFITS BECAUSE THE MOVE IS ANTIINFLATIONARY SAID SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS MR SOHN NOTED THAT SHORTTERM RATES EDGED UP AS INVESTORS SOLD SECURITIES WITH SHORTER MATURITIES TO BUY LONGERDATED ONES ALSO BOLSTERING THE LONG END WAS A DROP IN COMMODITIES PRICES AND GOLD STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO SAID BOND TRADERS WERE FURTHER RELIEVED THAT THE FED DIDN'T TAKE IMMEDIATE ACTION TO PUSH UP SHORTTERM RATES THE BOND MARKET WAS WORRIED THERE MIGHT BE AN IMMEDIATE REACTION THAT WOULD SHOW A TOUGHER POLICY HE SAID BUT NOW THE MARKET IS SATISFIED THAT ANY ACTION WILL BE GRADUAL MR RESNICK ADDED THAT WITH INFLATION PICKING UP A LITTLE A MODEST INCREASE IN SHORTTERM RATES WOULDN'T BE TROUBLING WE'RE NOT TALKING ABOUT RUNAWAY INFLATION OR A REAL TIGHTENING OF POLICY HE SAID ADDING THAT MODESTLY HIGHER SHORTTERM RATES WON'T HURT THE STOCK MARKET AS LONG AS EARNINGS CONTINUE TO IMPROVE WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 004 TO 10560 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 1967 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 992 ISSUES FELL AND 950 ROSE BOND PRICES WERE MIXED THE TREASURY'S 10YEAR ISSUE LOST LESS THAN AN EIGHTH OF A POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 617 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16374 MARKS AND 11065 YEN COMPARED WITH 16253 MARKS AND 11030 YEN FRIDAY 9305250070 930525 INTERNATIONAL EUROPEAN BANK ASKS ACCOUNTANTS TO REVIEW DECOR EXPENDITURES LONDON THE EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT SAID ITS AUDIT COMMITTEE APPOINTED COOPERS & LYBRAND TO REVIEW THE MUCHCRITICIZED 849 MILLION OUTFITTING OF THE BANK'S OPULENT HEADQUARTERS HERE MEANWHILE DATA PROVIDED BY THE BANK SHOWED THAT IT IS RUNNING SHORT OF 1993 TARGETS ON SPENDING ON EASTERN EUROPEAN INFRASTRUCTURE AND PRIVATE ENTERPRISE PROJECTS THE BANK SAID THAT IN 1993 THROUGH MAY 21 IT HAD APPROVED 25 PROJECTS FOR A TOTAL AMOUNT OF FINANCING OF 593 MILLION EUROPEAN CURRENCY UNITS 715 MILLION HOWEVER ITS 1993 COMMITMENT TARGET IS BETWEEN TWO BILLION ECUS AND 26 BILLION ECUS IF IT CONTINUED TO FORGE COMMITMENTS AT THE CURRENT RATE TOTAL 1993 COMMITMENTS WOULD BE 154 BILLION ECUS OR ABOUT 77 OF ITS MINIMUM TARGET THE BANK WHICH WAS SET UP TWO YEARS AGO TO AID EASTERN EUROPE HAS COME UNDER CRITICISM FOR ITS LACK OF DISBURSEMENTS TO EASTERN EUROPE ESPECIALLY COMPARED WITH INTERNAL SPENDING ON THE HEADQUARTERS CHARTERED AIRPLANES AND A CHRISTMAS PARTY FOLLOWING A DIRECTORS MEETING YESTERDAY A BANK SPOKESWOMAN SAID THE BANK'S PRESIDENT JACQUES ATTALI HAS YET TO UNVEIL HIS PLAN FOR MANAGEMENT REORGANIZATION A MONTH AGO MR ATTALI UNDER PRESSURE TO RESIGN BECAUSE OF THE SPENDING SCANDAL SAID HE WOULD EXAMINE A REORGANIZATION OF THE BANK HE HINTED THEN THAT HE MIGHT CEDE POWER OVER DAYTODAY OPERATIONS 9305250069 930525 MARKETING & MEDIA SEGA PLANS RATINGS TO HELP PARENTS PICK VIDEO GAMES REDWOOD CITY CALIF SEGA OF AMERICA INC SAID IT PLANS TO HELP PARENTS SCREEN ITS VIDEO GAMES BY INCLUDING MOVIELIKE RATINGS WITH EACH NEW GAME BEGINNING THIS MONTH SEGA A UNIT OF SEGA ENTERPRISES LTD OF JAPAN SAID IT WILL SET THREE CLASSIFICATIONS FOR ITS GAMES GA FOR GENERAL AUDIENCES M13 FOR TEENAGERS WITH SUGGESTED PARENTAL GUIDANCE AND MA17 FOR VIDEO GAMES APPROPRIATE FOR ADULTS ONLY MORE THAN A THIRD OF SEGA'S VIDEOGAME CUSTOMERS ARE ADULTS A SEGA SPOKESWOMAN SAID NONE OF THE COMPANY'S CURRENT GAMES FALL INTO THE ADULTSONLY RATING ONE GAME NIGHT TRAP WHICH IS ABOUT VAMPIRES WILL BE RATED MA13 SHE SAID THE REST WILL ALL CARRY THE GENERALAUDIENCE RATING WE DON'T HAVE ANY INTENTION OF PRODUCING ADULTONLY VIDEOS IN THE FUTURE SAID THE SPOKESWOMAN THE VIDEO GAME MAKER SAID THE RATINGS WILL BE SET BY A PANEL OF ITS EXECUTIVES WITH INPUT FROM CONSUMER FOCUS GROUPS AND INDUSTRY REPRESENTATIVES THE RATINGS WILL APPEAR ON PACKAGING OF NEW GAME TITLES RELEASED BY THE COMPANY STARTING THIS MONTH AND LATER WILL BE INCLUDED ON GAMES CREATED BY OUTSIDE DEVELOPERS FOR SEGA'S GENESIS GAME GEAR AND SEGA CD SYSTEMS 9305250068 930525 TECHNOLOGY BRIEF CRAY COMPUTER CORP SUPERCOMPUTER IS DELIVERED TO RESEARCH CENTER FOR TEST CRAY COMPUTER CORP COLORADO SPRINGS COLO SAID IT DELIVERED THE FIRST DEMONSTRATION MODEL OF ITS CRAY3 SUPERCOMPUTER TO THE NATIONAL CENTER FOR ATMOSPHERIC RESEARCH THE SPINOFF OF CRAY RESEARCH INC SAID IT WILL LEND THE EQUIPMENT TO THE RESEARCH CENTER FOR SIX MONTHS BUT WON'T RECEIVE ANY REVENUE FROM THE CENTER DURING THIS EVALUATION PERIOD NCAR BASED IN BOULDER COLO WILL USE THE MACHINE TO SIMULATE GLOBAL WEATHER PATTERNS CRAY COMPUTER OFFICIALS HOPE SUCCESSFUL TESTING OF THE CRAY3 WILL PERSUADE OTHER CUSTOMERS TO BEGIN MAKING PURCHASES OF THE MUCHDELAYED MACHINE THE SUPERCOMPUTER DELIVERED TO NCAR IS POWERED BY FOUR HIGHSPEED PROCESSORS 9305250067 930525 DEMOCRATS GET MORE SKITTISH ON DEFICIT BILL SOME HOUSE MEMBERS URGE DELAY IN VOTE FEARING OUTCOME IN THE SENATE BY JACKIE CALMES AND JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE DEMOCRATS HAVE BECOME SO SKITTISH ABOUT THIS WEEK'S SCHEDULED VOTE ON PRESIDENT CLINTON'S DEFICITREDUCTION PROGRAM THAT SOME ARE URGING A DELAY UNTIL NEXT MONTH THE LAWMAKERS' NERVOUSNESS INCREASED AFTER A WEEKEND OF PRESS ATTENTION TO THE DANGERS AHEAD FOR THE BILL IN THE SENATE IN THE WAKE OF LAST WEEK'S DEFECTION BY SEN DAVID BOREN D OKLA A FOE OF MR CLINTON'S PROPOSED ENERGY TAX MANY DEMOCRATS DON'T WANT TO VOTE FOR A TAX BILL IF IT SEEMS HEADED TO DEFEAT IN THE SENATE HOUSE LEADERS CONTINUED TO INSIST THE VOTE WOULD TAKE PLACE AS SCHEDULED THURSDAY I DON'T ANTICIPATE A DELAY HOUSE SPEAKER THOMAS FOLEY D WASH SAID YESTERDAY AT THE SAME TIME MR FOLEY ADDED THERE'S OBVIOUSLY NO REQUIREMENT THAT WE VOTE UNTIL WE HAVE THE VOTES ACCORDING TO ONE TOP LEADERSHIP LIEUTENANT MR CLINTON WAS 40 VOTES SHORT OF THE 218VOTE MAJORITY NEEDED TO PASS THE DEFICITREDUCTION PACKAGE IF AS EXPECTED NO REPUBLICANS SUPPORT THE BILL AT A MEETING FRIDAY OF A BROAD COALITION OF BUSINESS LABOR EDUCATION AND ENVIRONMENTAL GROUPS SUPPORTING THE BILL A HOUSE LEADER SUPPLIED THE NAMES OF 63 UNDECIDED HOUSE DEMOCRATS FOR THE REPRESENTATIVES TO LOBBY HOUSE LEADERS AND THE CLINTON ADMINISTRATION ARE SPREADING THE WORD TO WAVERING DEMOCRATS THAT THE TAX ON ENERGY CONSUMPTION DESIGNED TO RAISE 22 BILLION A YEAR WON'T BE REPLACED AND THAT ANY ALTERNATIVE SUCH AS A GASOLINE TAX IS AT LEAST AS CONTROVERSIAL THE ENERGY TAX HAS NO CREDIBLE ALTERNATIVE OFFERED THAT CAN PASS CONSEQUENTLY IT STANDS WITHOUT A SERIOUS CHALLENGE AT THIS POINT SPEAKER FOLEY SAID THE LEADERS ALSO ARE TELLING DEMOCRATS THAT THE FAILURE OF THE BILL WOULD BE CALAMITOUS TO THE PRESIDENT AND BY EXTENSION TO THE PARTY THIS IS THE BATTLE OF BRITAIN FOR THE CLINTON ADMINISTRATION IT HAS TO WIN THIS VOTE SAID REP JOHN MURTHA D PA BUT JITTERY LAWMAKERS ARE SEEKING ASSURANCES THAT THE SENATE WON'T KILL THE ENERGY TAX OR THE ENTIRE DEFICITREDUCTION PACKAGE AS A RESULT A NUMBER OF LAWMAKERS PRIVATELY ARE URGING THE LEADERSHIP TO POSTPONE THE HOUSE VOTE TO SEE WHAT THE SENATE FINANCE COMMITTEE CAN PASS THE SENATE PANEL IS EXPECTED TO ACT BY MIDJUNE ALTHOUGH THE OPPOSITION OF SEN BOREN LEAVES DEMOCRATS SHORT OF A MAJORITY ON THE COMMITTEE IF NO REPUBLICANS SUPPORT MR CLINTON MEANWHILE MR CLINTON AND HIS CABINET WERE CONTACTING LAWMAKERS FOR SUPPORT NOT TAKING ANYONE FOR GRANTED DONNA SHALALA SECRETARY OF HEALTH AND HUMAN SERVICES CALLED REP GERALD KLECZKA D WIS WHO HAS ALREADY VOTED FOR THE BILL AS A MEMBER OF THE TAXWRITING HOUSE WAYS AND MEANS COMMITTEE THE PRESIDENT IS DUE TO MEET WITH THREE GROUPS OF HOUSE DEMOCRATS TODAY INCLUDING THE LARGE FRESHMAN CLASS THE RANKS OF THE UNDECIDEDS INCLUDE A NUMBER OF FIRSTYEAR MEMBERS MANY OF WHOM WERE ELECTED BY CLOSE MARGINS AND ARE APPREHENSIVE ABOUT VOTING FOR TAXES AS THE CONTROVERSY OVER THE ENERGY TAX ESCALATED HOUSE LEADERS AND PARTY MODERATES WERE WORKING TOWARD A RESOLUTION OF A DISPUTE OVER WHETHER TO CAP FUTURE SPENDING FOR FEDERAL ENTITLEMENT PROGRAMS AT THE SAME TIME THE ANTITAX GROUPS WHOSE AD CAMPAIGN IN OKLAHOMA HELPED PUSH SEN BOREN TO OPPOSE THE ENERGY TAX HAVE BEGUN BUYING TELEVISION ADS IN NORTH DAKOTA THAT IS THE HOME OF SEN KENT CONRAD ANOTHER DEMOCRAT ON THE FINANCE COMMITTEE WHO IS WORRIED ABOUT THE IMPACT OF THE ENERGY TAX ON FARMERS SEN CONRAD HAD DECLINED TO ENDORSE SEN BOREN'S ALTERNATIVE WHICH SUBSTITUTES THE ENERGY LEVY LARGELY WITH CUTS IN PROJECTED SPENDING FOR MEDICARE AND SOCIAL SECURITY THE GROUPS ARE THE AFFORDABLE ENERGY ALLIANCE AN INDUSTRY COALITION MOBILIZED BY PETROLEUM AND MANUFACTURING INTERESTS AND CITIZENS FOR A SOUND ECONOMY A REPUBLICANORIENTED THINK TANK THIS IS A VERY ORCHESTRATED CAMPAIGN BY A VERY SELFISH GROUP OF CORPORATIONS SAID DEMOCRATIC REP MIKE SYNAR WHO HAS SEEN ITS EFFECT IN HIS HOME STATE OF OKLAHOMA 9305250066 930525 SENATE CLEARS NOMINATION OF ACHTENBERG TO HUD JOB WASHINGTON THE SENATE ENDED A BITTER NOMINATION FIGHT BY CONFIRMING ROBERTA ACHTENBERG AN OPENLY GAY MEMBER OF THE SAN FRANCISCO BOARD OF SUPERVISORS TO BE ASSISTANT SECRETARY FOR FAIR HOUSING AND EQUAL OPPORTUNITY AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT THE VOTE WAS 5831 MS ACHTENBERG A 42YEAROLD CIVIL RIGHTS LAWYER DREW FIRE FROM CONSERVATIVE REPUBLICANS WHO WERE LED BY NORTH CAROLINA SEN JESSE HELMS HE CALLED MS ACHTENBERG A PUSHY DEMEANING DEMANDING MEANSPIRITED PERSON AND A MILITANTLY ACTIVIST LESBIAN SEN DIANNE FEINSTEIN D CALIF DENIED THAT MS ACHTENBERG WAS AN EXTREME ACTIVIST SEN DONALD RIEGLE D MICH CHAIRMAN OF THE BANKING HOUSING AND URBAN AFFAIRS COMMITTEE PRAISED HER AS EXCEPTIONALLY QUALIFIED FOR THE JOB HE CONTENDED THAT A NOMINEE'S SEXUAL ORIENTATION SHOULDN'T PLAY A ROLE IN DETERMINING HIS OR HER SUITABILITY FOR AN ADMINISTRATION JOB MS ACHTENBERG A FORMER EXECUTIVE DIRECTOR OF THE NATIONAL CENTER FOR LESBIAN RIGHTS WAS AN EARLY SUPPORTER OF PRESIDENT CLINTON'S 9305250065 930525 TALES ARE OFT TOLD AS TV TALK SHOWS FILL UP AIR TIME A TRANSSEXUAL LESBIAN FINDS HERSELF MUCH IN DEMAND ON GERALDO' AND THE LIKE BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHERROL MILLER A 44YEAROLD NURSE IN LOUISVILLE KY IS QUEEN OF THE TALK SHOWS SO FAR MS MILLER HAS TO HER CREDIT THREE DONAHUES TWO SALLY JESSY RAPHAELS ONE GERALDO ONE JOAN RIVERS AND A MONTEL WILLIAMS NOT TO MENTION AN ATTITUDES BEFORE THAT SHOW WAS CANCELED MS MILLER'S CLAIM TO FAME I WAS THE TENTH WIFE OF A GAY CONMAN BIGAMIST SHE SAYS HER UNLIKELY MARRIAGE SUCH AS IT WAS CRUMBLED AFTER FOUR DAYS WHEN SHE FIGURED THINGS OUT AND PICKED HIM UP LIKE A KLEENEX AND THREW HIM OUT IN THE YARD THE DIVORCE CAME THROUGH 17 DAYS LATER BUT TV TALK SHOWS HAVE TURNED HER FLEETING MISFORTUNE INTO A SAGA THAT HAS HELD UP THROUGH NEARLY FIVE YEARS OF RETELLING MS MILLER'S RECORD HIGHLIGHTS ONE CURIOUS ASPECT OF THIS FRANTICALLY COMPETITIVE CORNER OF THE TELEVISION BUSINESS THE TV DIAL IS PACKED WITH TALK SHOWS MORNING NOON AND NIGHT AND GAB RIVALS SCRAP MIGHTILY FOR THE SEXIEST SCOOPS SOMETIMES EVEN PAYING APPEARANCE FEES TO VICTIMS OF THE HOTTEST SCANDAL DU JOUR YET EVER EAGER TO SCRUTINIZE THE BIZARRE UNDERBELLY OF LIFE VIRTUALLY ALL TALK SHOWS ARE ROUTINELY RETREADING GUESTS AND TOPICS THAT HAD AIRED ON THE COMPETITION MONTHS AND SOMETIMES ONLY DAYS BEFORE LIKE MOST TALKSHOW HOSTS MS RIVERS SWEARS THAT HER PROGRAM ALMOST NEVER REUSES RIVALS' GUESTS IT IS A HARDANDFAST RULE OF THE TRADE THAT EVERY SHOW INSISTS IT DOESN'T SIGN UP COMPETITORS' DISCOVERIES WHILE CONTENDING THAT EVERYONE ELSE DOES IT'S NOT COOL COMPLAINS CATHY CHERMOL EXECUTIVE PRODUCER OF THE JANE WHITNEY SHOW BUT THE REALITY IS THAT AS THE SHOWS PROLIFERATE UNEXPLORED TERRAIN DWINDLES AND DEMAND GROWS FOR THE GUEST WITH AN EYEOPENING TALE IN STRUGGLING TO FILL GUEST CHAIRS FIVE DAYS A WEEK 40PLUS WEEKS A YEAR ALMOST EVERY TALK SHOW HAS RESORTED TO BOOKING OTHER SHOWS' GUESTS BE IT THE 44YEAROLD WOMAN MARRIED TO THE 14YEAROLD BOY OR THE BULIMIC BARBI TWINS THE COMPETITION FOR GUESTS HAS BEEN ESPECIALLY TOUGH THIS MONTH ONE OF FOUR SWEEPS MONTHS WHEN RATINGS ARE USED TO SET AD RATES FOR THE NEXT QUARTER THERE IS FOR EXAMPLE ONLY A LIMITED POOL OF TRANSSEXUAL LESBIANS A POPULAR SUBJECT AROUND SWEEPS TIME WHO ARE WILLING TO TELL THEIR STORIES ON NATIONAL TELEVISION ONE TRANSSEXUAL LESBIAN SAN FRANCISCOBASED WRITER AND PERFORMANCE ARTIST KATE BORNSTEIN WOUND UP ON THREE SHOWS GERALDO DONAHUE AND JANE WHITNEY WHILE SHE ISN'T ALL THAT THRILLED WITH HER ROLE AS QUASISPOKESWOMAN MS BORNSTEIN IS HAPPY THAT HER KIND IS GETTING PLENTY OF TIME ON THE TALK SHOWS WHICH SHE LIKENS TO 19THCENTURY CIRCUS FREAK SHOWS WHAT'S DIFFERENT NOW IS THAT WE AS FREAKS ARE DOING THE SPEAKING IT ISN'T THE BARKER TELLING OUR STORY FOR US SHE DECLARES MOST OF THE GUESTS WHO APPEAR ON TALK SHOWS ARE CLAMORING TO TELL THEIR STORIES SAYS PAT PRIEST WHO WROTE HER UNIVERSITY OF GEORGIA DOCTORAL DISSERTATION ON SELF DISCLOSURE ON TELEVISION THE COUNTERHEGEMONIC STRUGGLE OF MARGINALIZED GROUPS ON DONAHUE' SHE INTERVIEWED TWO DOZEN SUBJECTS FROM AN INCEST VICTIM TO GAYBUTMARRIED CHRISTIAN EVANGELICALS AND FOUND MOST HAD BEEN ON MORE THAN ONE SHOW IT IMPARTS A NEW STATUS AS SEEN ON TV' SAYS MS PRIEST THEY SEE IT AS BEING CHOSEN OPRAH SET OFF THE TABLOIDTALK DELUGE ALMOST SEVEN YEARS AGO AND SINCE THEN A FEW DOZEN CLONES HAVE TRIED TO CASH IN ON THE FORMAT'S LOW OVERHEAD AND TREMENDOUS UPSIDE IT COSTS THE SHOWS ABOUT 12 MILLION TO PRODUCE A 40WEEK SEASON THE INDUSTRY AVERAGE YET A PERENNIAL WINNER LIKE OPRAH BRINGS IN REVENUE OF 190 MILLION A YEAR A DOZEN SYNDICATED DAYTIME TALK SHOWS NOW VIE WITH ONE ANOTHER ON THE AIR THREE OTHERS ARE IN DEVELOPMENT WHILE STILL MORE ARE ON THE STORYBOARDS THE OVERCROWDING BREEDS RECYCLING MOST OF THE NATION WAS HORRIFIED TWO MONTHS AGO BY REPORTS ABOUT THE SPUR POSSE THE LAKEWOOD CALIF GANG OF TEENAGE BOYS WHO KEPT A POINTSCORING SYSTEM TO COMPARE THE NUMBER OF GIRLS EACH HAD SLEPT WITH AT MOST MAJOR TALK SHOWS PERSONAL DISGUST WAS SUPPRESSED IN FAVOR OF A MORE BASIC INSTINCT HOW TO BOOK GANG MEMBERS AS GUESTS JANE WHITNEY GOT THEM FIRST AIRING A SHOW ON APRIL 5 MAURY POVICH FOLLOWED ON APRIL 7 COMING IN THIRD DIDN'T DISSUADE THE OTHERS WHITNEY PRODUCERS PASSED SOME OF THE BOYS' HOME PHONE NUMBERS TO JENNY JONES BOTH ARE PRODUCED BY A UNIT OF TIME WARNER INC WHICH ALSO BROADCAST A SHOW ON APRIL 7 JIM PARATORE PRESIDENT OF TIME WARNER INC'S TELEPICTURES PRODUCTIONS UNIT CALLS STORIES LIKE THE SPUR POSSE SCANDAL MEDIA PHENOMENA WITH A HALFLIFE OF A WEEK TO TWO WEEKS HE ATTRIBUTES THE RETREADING TO THE TASTE OF VIEWERS THEMSELVES WHO HAVE SHOWN THAT THEY WILL WATCH MORE THAN ONE SHOW ON THE SAME TOPIC STILL PRODUCERS INSIST THEY GO OUT OF THEIR WAY TO BREAK NEW GROUND MAURY POVICH'S STAFF RUMMAGES THROUGH TWO DOZEN NEWSPAPERS AND WIRE SERVICES FROM THREE KEY STATES FLORIDA TEXAS AND CALIFORNIA TO TRY TO BEAT THE PACK AT UNEARTHING UNUSUAL STORIES NONE OF US WOULD BE ON THE AIR IF THE STATES OF FLORIDA TEXAS AND CALIFORNIA DIDN'T EXIST MR POVICH SAYS THAT'S WHERE EVERY BIZARRE ACT HAPPENS AND EVERY WEIRD PERSON ALIGHTS HIS EXECUTIVE PRODUCER DIANE RAPPOPORT ADDS THAT THE SPUR POSSE SHOW DOESN'T COUNT AS A RETREAD IT USED A DIFFERENT SET OF BOYS PRODUCERS EMPLOY STRATAGEMS LIKE THAT AS PART OF THEIR CREATIVE SLICING AND DICING TO SPICE UP A TIRED TOPIC AS SOMETHING DIFFERENT AND FOR THEM SHERROL MILLER THE 10TH WIFE OF THE GAY CONMAN BIGAMIST HAS PROVED TO BE A GODSEND THE SHOWS ON WHICH SHE HAS APPEARED HAVE EXAMINED EVERYTHING FROM WHEN THE ONE AND ONLY YOU MARRIED HAS BEEN TO THE ALTAR TIME AFTER TIME GERALDO TO WOMEN WHO ARE WILLING AND UNWILLING TO BE IN PLURAL MARRIAGES MONTEL ON DONAHUE ALONE SHE DISCUSSED SHORT MARRIAGES MARCH 1 1989 27 WOMEN MARRIED TO THE SAME MAN JAN 5 1990 AND WILL HE LOVE ME WHEN I'M 64 HE'S 24 NOV 24 1992 HER MULTIPLE APPEARANCES RESULT PARTLY FROM ANOTHER TALKSHOW PHENOMENON THE JOBHOPPING PRODUCER JOSE PRETLOW NOW SENIOR PRODUCER OF GERALDO FIRST BOOKED SHERROL MILLER WHEN HE WAS AT SALLY JESSY RAPHAEL AND SHE HAD WRITTEN TO THE SHOW ABOUT HER SAD TALE THEN MR PRETLOW MOVED TO DONAHUE WHERE HE BOOKED HER AGAIN HE LATER JUMPED TO GERALDO WHICH HAD ALREADY HOSTED MS MILLER ONCE BUT SHE HAS BECOME SO POPULAR FOR HER OUTSPOKEN ANSWERS AND QUICK HUMOR THAT MR PRETLOW WANTS HER BACK FOR YET ANOTHER PRESSING TOPIC BIG SEXY WOMEN IT ONLY PIQUES THE INTEREST OF THE VIEWERS TO SEE A GUEST SEVERAL TIMES OVER MR PRETLOW INSISTS SOMETIMES IT'S THE SECOND OR THIRD TIME WHEN MORE DETAILS UNFOLD AND WITH A DIFFERENT HOST AND A DIFFERENT AUDIENCE THE SAME GUESTS CAN ALMOST SEEM LIKE A DIFFERENT SHOW VIEWERS DON'T SEEM TO MIND 9305250064 930525 INTERNATIONAL RUSSIA LIFTS SECRECY IN AN ATTEMPT TO SELL MILITARY EQUIPMENT AT BIG TRADE SHOW IN ENGLAND MOSCOW WOOS WESTERNERS WITH NEW RADAR GRENADES BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL BIRMINGHAM ENGLAND HERE'S AN UNUSUAL ITEM FROM RUSSIA'S ARSENAL NOW ON SALE TO THE WEST A HAND GRENADE THAT INCAPACITATES ITS VICTIM FOR 30 MINUTES WITH A BLINDING FLASH OF LIGHT AND A 170DECIBEL BANG BUT DOESN'T MAIM THIS FRAGMENTATIONLESS GRENADE IS ONE OF THE HUNDREDS OF PRODUCTS AND TECHNOLOGIES THAT THE RUSSIANS PUT ON SHOW AT AN UNUSUAL BIRMINGHAM EXHIBITION OF ITS DEFENSE TECHNOLOGY THE FOURDAY SHOW WHICH BEGAN YESTERDAY LIFTED THE VEIL OF SECRECY ON A WIDE RANGE OF RUSSIAN MILITARY TECHNOLOGY DEVELOPED FOR THE COLD WAR AND NOW IN SEARCH OF WESTERN BUYERS IT INCLUDED EARLY WARNING RADAR SYSTEMS SURVEILLANCE SATELLITE PHOTOGRAPHS OF EARTH PRECISION GRINDING EQUIPMENT AND EVEN FIREWORKS A CIVILIAN SPIN OFF FROM ONE OF RUSSIA'S MAIN EXPLOSIVES PRODUCERS THE SHOW THE DEFENSE INDUSTRY'S THIRD IN THE WEST SINCE 1990 IS PART OF RUSSIA'S INCREASINGLY DESPERATE CAMPAIGN TO FIND CIVILIAN MARKETS FOR ITS TECHNOLOGY THOUGH RUSSIAN INDUSTRY OFFICIALS SAY ABOUT 1000 EASTWEST JOINT VENTURES EMPLOYING 50000 TO 70000 WORKERS HAVE BEEN FORMED MOST OF THESE VENTURES HAVE YET TO PRODUCE SERIOUS INCOME OR MAJOR CONTRACTS RUSSIAN SECRECY HAS BEEN PART OF THE PROBLEM SAYS ALEXANDER YAKOVLEV FIRST DEPUTY HEAD OF THE DEFENSE INDUSTRY'S RADIO COMMUNICATIONS SECTOR WHEN THE SALES DRIVE TO THE WEST BEGAN A FEW YEARS AGO HE SAYS RUSSIA HELD BACK MANY OF ITS MOST INTERESTING PRODUCTS FOR THE EXCLUSIVE USE OF ITS OWN MILITARY THOUGH MOST STATEOFTHEART TECHNOLOGY REMAINS SECRET THIS WEEK'S SHOW REFLECTS MOSCOW'S DESIRE TO SACRIFICE SOME SECRECY FOR MORE SALES AS A CASE IN POINT MR YAKOVLEV'S DEPARTMENT HAS JUST GOTTEN PERMISSION FROM MOSCOW TO DISPLAY SOME ADVANCED RUSSIAN RADAR THE SYSTEM USING SOCALLED PHASEDARRAY TECHNOLOGY IS BILLED AS BEING ABLE TO DETECT INCOMING AIRCRAFT OR MISSILES AT 1200 MILES THE 20 MILLION PRICE FOR A TYPICAL SYSTEM IS A FRACTION OF THE PRICE OF COMPETING WESTERN RADARS THE SYSTEM APPARENTLY INTERESTS MORE THAN BUSINESSMEN VISITORS TO THE DISPLAY INCLUDED OFFICIALS OF BRITAIN'S MINISTRY OF DEFENSE WHO TOOK PHOTOGRAPHS OTHER PRODUCTS ON DISPLAY INCLUDED SOME NOVEL METALWORKING TECHNOLOGY USED TO STRENGTHEN ARTILLERY SHELLS CALLED HYDROSTATIC WORKING THE PROCESS ENTAIL SQUEEZING THE METAL COMPONENTS INSIDE A DRUM OF OIL AT FORCES 20000 TIMES NORMAL ATMOSPHERIC PRESSURE THE PROCESS IS TYPICAL OF WHAT WESTERN ANALYSTS SAY IS A HIGH POINT OF EXSOVIET TECHNOLOGY UNUSUAL MATERIALS AND METALWORKING METHODS ALSO ON DISPLAY WAS AN EXAMPLE OF THE PROBLEMS THE RUSSIANS FACE IN SELLING TO THE WEST DESPITE WEEKS OF ADVANCE PUBLICITY IN BRITAIN THE SHOW ATTRACTED PRECIOUS FEW INDUSTRIAL BUYERS AT SOME POINTS THE 200ODD JOURNALISTS AT THE SHOW APPEARED TO OUTNUMBER POTENTIAL BUYERS ONE RUSSIAN GOVERNMENT OFFICIAL BLAMED THE SHOW'S ORGANIZERS FOR FAILING TO CONTACT ENOUGH BRITISH COMPANIES DIRECTLY 9305250063 930525 TECHNOLOGY NYNEX UNIT TO LAUNCH STATE NETWORK LINKING BIG COMPUTING SYSTEMS SYRACUSE NY NEW YORK TELEPHONE SAID IT WILL LAUNCH A FIBEROPTIC NETWORK TO LINK LARGE COMPUTING SYSTEMS AT MAJOR RESEARCH FACILITIES IN NEW YORK STATE THE NYNEX CORP UNIT SAID THE NEW YORK NETWORK OR NYNET INITIALLY WILL LINK COMPUTERS AT SYRACUSE UNIVERSITY AND CORNELL UNIVERSITY ITHACA NY TO ROME LABORATORY IN ROME NY AND THE MUSEUM OF SCIENCE AND TECHNOLOGY IN SYRACUSE NEW YORK TELEPHONE SAID IT WILL INVEST ABOUT 45 MILLION IN THE ULTRAHIGH SPEED NETWORK WHICH IS SCHEDULED TO BEGIN OPERATIONS BY THE END OF THIS YEAR THE NETWORK WILL BE EXPANDED DOWNSTATE TO INCLUDE COLUMBIA AND POLYTECHNIC UNIVERSITIES AND NYNEX'S SCIENCE AND TECHNOLOGY CENTER IN WHITE PLAINS NY EVENTUALLY MANY OTHER PUBLIC INSTITUTIONS AND PRIVATE BUSINESSES WILL BE ABLE TO TAP INTO NYNET TO EXPAND THEIR RESEARCH AND DEVELOPMENT CAPABILITIES THE PHONE COMPANY SAID A SPOKESMAN FOR NEW YORK TELEPHONE WHICH IS BASED IN NEW YORK CITY SAID THE NETWORK EVENTUALLY COULD BE LINKED TO HOMES IN NEW YORK STATE AND TO HIGHSPEED INFORMATION NETWORKS IN OTHER STATES WE CONSIDER THIS AS ONE OF THE FIRST STEPS TOWARD THE SOCALLED INFORMATION HIGHWAY HE SAID 9305250062 930525 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN STEELMAKERS MULL A SURCHARGE TO PAY FOR RETIREE BENEFITS WITH BILLIONS OF DOLLARS IN UNFUNDED PENSION AND RETIREE HEALTHCARE OBLIGATIONS THE UNITED STEELWORKERS FLOATS THE IDEA OF IMPOSING A 5ATON SURCHARGE ON IMPORTED AND DOMESTIC STEEL THE CHARGE WHICH WOULD NEED CONGRESSIONAL ACTION WOULD LESSEN THE EDGE YOUNG MINIMILLS HAVE OVER TRADITIONAL MILLS WHICH HAVE MORE RETIREES THOMAS USHER PRESIDENT OF US STEEL SAYS THE SURCHARGE HAS SOME MERIT IF COMPANY COSTS GO DOWN ADDS NATIONAL STEEL PRESIDENT RONALD DOERR WE'D SEE SOME REAL BENEFIT IN SOMETHING LIKE THAT BUT CUSTOMERS AND THE SOCALLED MINIMILLS WOULD FIGHT THE SURCHARGE THE INDUSTRY WANTS THE GENERAL PUBLIC TO PAY FOR THEIR MISMANAGEMENT SAYS JAMES TODD JR HEAD OF MINIMILL BIRMINGHAM STEEL THE IDEA IS SIMILAR TO ONE BEING PROMOTED BY THE UNITED AUTO WORKERS AND THE AUTO INDUSTRY A COAL INDUSTRY FUND POOLS HEALTHCARE OBLIGATIONS FAX OR RELAX TECHNOLOGY CHANGES EXECUTIVES' BEHAVIOR ON VACATION HEWLETTPACKARD CHIEF LEWIS PLATT USES FAXES VOICE MAIL AND A CELLULAR PHONE ABOUT 45 MINUTES A DAY ON VACATION KRIS CHELLAM CHIEF FINANCIAL OFFICER FOR ATMEL A SAN JOSE CALIF SEMICONDUCTOR COMPANY ARGUES THAT WITH THE FAST FLOW OF INFORMATION YOU CAN'T AFFORD TO BE OUT OF TOUCH WITH YOUR COMPANY WHILE YOU'RE AWAY NEW YORK LAWYER MICHAEL YAMIN'S PORTABLE PHONE PRACTICALLY MELTED FROM USE ON A TRIP TO MAINE BUT A BACKLASH MAY HAVE BEGUN JAMES MCCLELLAN OF NORFOLK SOUTHERN ESCHEWS THE EGO TRIP OF FEELING NEEDED BY THE OFFICE IT'S A STATUS SYMBOL TO CARRY A LAPTOP COMPUTER AND GET FAXES WHEN YOU ARRIVE AT THE HOTEL HE SAYS FREDRIC ROBERTS HEAD OF THE NASD'S GOVERNING BOARD LEAVES AN ITINERARY WITH HIS TRAVEL AGENT TO BE OPENED ONLY IN LIFEORDEATH EMERGENCIES THE ADMINISTRATION'S PROPOSAL ON SKILL STANDARDS STRUGGLES ON CAPITOL HILL THE PLAN INTRODUCED IN APRIL AS PART OF THE WHITE HOUSE'S EDUCATIONREFORM PACKAGE WOULD SET UP A BOARD TO ENCOURAGE DEVELOPMENT OF NATIONAL STANDARDS FOR WORKER SKILLS EMPLOYEES WOULD RECEIVE CREDENTIALS FOR REACHING LEVELS OF COMPETENCE IN GENERAL AREAS THE 28MEMBER BOARD WOULD ISSUE GOOD HOUSEKEEPINGSTYLE SEALS OF APPROVAL FOR STANDARDS CONGRESSIONAL REPUBLICANS PRODDED BY BUSINESS GROUPS FUME THAT THE BOARD WOULD BE LOADED WITH GOVERNMENT AND UNION OFFICIALS AND THEY OBJECT TO LABOR SECRETARY ROBERT REICH'S PROPOSED LEADERSHIP OF THE BOARD PREFERRING INSTEAD A STRONGER INDUSTRY ROLE A FEDERAL BOARD THAT IS OVERLY PRESCRIPTIVE AND REGULATORY WILL SIMPLY BE COUNTERPRODUCTIVE SAYS KANSAS REPUBLICAN SEN NANCY KASSEBAUM REPUBLICANS FORCE NEGOTIATION AND A SEPARATE VOTE ON SKILL STANDARDS IN THE SENATE WHERE THE LABOR COMMITTEE TAKES UP THE ISSUE TOMORROW FUN ON THE PICKET LINE REFUSE COMPACTOR SERVICE PRESIDENT ART NEVILL DROVE A FORKLIFT INTO SEVERAL PICKETING WORKERS CURSED AT EMPLOYEES WHOM HE ACCUSED OF WHISTLING AT HIS WIFE CLOSED A PLANT GATE SO AS TO KNOCK THE WIND OUT OF AN EMPLOYEE AND BURNED A UAW SIGN ACCORDING TO THE NATIONAL LABOR RELATIONS BOARD MR NEVILL SAYS HE DIDN'T HURT ANYONE AND HE WARNS THAT THE WALKOUT WILL FORCE HIM TO CLOSE THE SYLMAR CALIF FACILITY THE NLRB SIDED WITH THE UNION WANT MORE JOBS BUILD MANUFACTURING RATHER THAN SERVICES A STUDY ARGUES PUTTING NEW NUMBERS ON AN OLD CONCEPT ECONOMISTS DEAN BAKER AND THEA LEE AT THE ECONOMIC POLICY INSTITUTE CONTEND THAT MANUFACTURING JOBS GENERATE MORE THAN FOUR TIMES AS MANY SECONDARY JOBS AS THE AVERAGE RETAIL JOB DOES THE STUDY ALSO SINGLED OUT THE AUTO INDUSTRY AS A HUGE SECONDARYJOB PROVIDER WAITING FOR REFORM ONLY 26 OF US COMPANIES PROVIDE PARTTIME WORKERS WITH HEALTH BENEFITS A COOPERS & LYBRAND STUDY SHOWS ABOUT 23 OF THE RESPONDING FIRMS ALSO OFFER GROUP LIFE INSURANCE TO THEIR PARTTIMERS AMONG FIRMS OFFERING BENEFITS TO PARTTIMERS TWOFIFTHS PROVIDE SICK LEAVE AND 13 OFFER LONGTERM DISABILITY CREDENTIALS COUNT AND MANAGERS SHOULD DEMAND THEM EXPERTS SAY NOWJOBLESS OFFICIALS WITHOUT ADVANCED DEGREES ARE HAVING PROBLEMS LANDING NEW JOBS BECAUSE THEY LACK ACADEMIC CREDENTIALS SAYS WILMETTE ILL CAREER STRATEGIST MARILYN MOATS KENNEDY HEADHUNTER CHRISTOPHER POLSON OF MINNEAPOLIS POINTS TO FINANCE WHERE MANY DIVISION CONTROLLERS WERE PROMOTED WITH BACHELOR'S DEGREES BUT NOW ARE MISSING THE MBA OR DEGREE IN ACCOUNTING NEEDED TO GET SIMILAR POSTS AT OTHER COMPANIES SO ASK FOR TRAINING ADVISERS SAY EMPLOYEES SHOULD TELL BOSSES ALL MY PEERS ARE AT A HIGHER EDUCATIONAL LEVEL HOW ABOUT SOME SUPPORT THERE MS KENNEDY SAYS ONE HEADHUNTER TELLS OF A FEMALE BANKER WITH A BA IN FINANCE WHO WAS BEING HOTLY PURSUED TO HEAD A BANK'S BRANCH OPERATIONS BEFORE ACCEPTING THE JOB SHE MADE THE BANK ENROLL HER IN AN EXECUTIVE MBA PROGRAM SAYS WASHINGTON DC HEADHUNTER BOB BRUDNO ALL ELSE BEING EQUAL THE EXTRA CREDENTIALS CAN BE THE DIFFERENCE IN WHO LANDS A JOB THE CHECKOFF A HOUSE COMMITTEE RENAMES LEGISLATION TO BAR PERMANENT REPLACEMENT OF STRIKERS THE CESAR CHAVEZ ACT THE NATIONAL HEAD INJURY FOUNDATION ASKS WORKERS TO BROWN BAG LUNCH TOMORROW AND DONATE THE MONEY THEY WOULD HAVE SPENT AT RESTAURANTS TO THE ORGANIZATION 9305250061 930525 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED MAY 21 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER GLASGOW KY WILL REDEEM ON JULY 1 1993 ITS SECURING POLLUTION CONTROL REVENUE BONDS DUE DEC 1 2009 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE LANCASTER INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON JULY 1 1993 ITS SECURING POLLUTION CONTROL REVENUE BONDS DUE DEC 1 2009 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE METROPOLITAN TRANSPORTATION AUTHORITY WILL REDEEM ON JULY 1 1993 THE FOLLOWING TRANSIT FACILITIES SERVICE CONTRACT AND COMMUTER FACILITIES SERVICE CONTRACT BONDS OF SERIES B 9 DUE 1994 925 DUE 1995 95 DUE 1996 97 DUE 1997 99 DUE 1998 1025 DUE 2003 105 DUE 2013 AND 7 DUE 2016 OF SERIES C AND D 83 DUE 1994 85 DUE 1995 87 DUE 1996 885 DUE 1997 89 DUE 1998 9 DUE 2003 925 DUE 2015 AND 9 DUE 2017 ALL BONDS ARE DUE ON JULY 1 OF THEIR RESPECTIVE YEARS CHEMICAL BANK NEW YORK IS TRUSTEE NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY WILL REDEEM ON JULY 1 1993 75000 PRINCIPAL AMOUNT OF ITS 98 MEMORIAL GENERAL HOSPITAL REVENUE BONDS SERIES B DUE JULY 1 2014 UNITED COUNTIES TRUST CO SUMMIT NJ IS TRUSTEE AETNA LIFE & CASUALTY CO WILL REDEEM AT THE OPTION OF NOTEHOLDERS ITS 775 NOTES DUE 2016 ON JULY 17 1993 BANKERS TRUST CO LONDON IS PAYING AGENT IT WILL ALSO REDEEM ON JUNE 15 1993 ITS 8125 DEBENTURES DUE 2007 FIRST NATIONAL BANK OF BOSTON IS PAYING AGENT FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM ON JUNE 14 1993 ITS 885 DEBENTURES DUE JUNE 12 1995 IT WILL ALSO REDEEM THE FOLLOWING MEDIUMTERM NOTE ISSUES ON JUNE 22 1993 567 DUE JUNE 22 1995 ON JUNE 25 1993 51 DUE JUNE 25 1997 AND ON JULY 6 1993 55 DUE JULY 6 1995 NIPPON TELEGRAPH & TELEPHONE CORP WILL REDEEM ON JUNE 13 1993 ITS 1335 GUARANTEED NOTES DUE JUNE 13 1994 THE BANK OF TOKYO NEW YORK IS FISCAL AGENT 9305250060 930525 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 AMERICAN STANDARD INC 650 MILLION TWOPART ISSUE OF SECURITIES PRICED THROUGH UNDERWRITERS LED BY BT SECURITIES CORP THE FIRST PART CONSISTING OF 200 MILLION OF SENIOR SUBORDINATED NOTES DUE JUNE 1 2001 WAS PRICED AT PAR TO YIELD 9875 THE SECOND PART CONSISTING OF 450 MILLION PROCEEDS OF SENIOR SUBORDINATED DISCOUNTED DEBENTURES DUE JUNE 1 2005 WAS PRICED AT 59948 TO YIELD 105 THE DEBENTURES MAKE NO INTEREST PAYMENTS FOR FIVE YEARS BOTH TRANCHES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP BANKAMERICA CORP 350 MILLION OF SUBORDINATED NOTES DUE JUNE 1 2003 PRICED AS 6875S AT 99401 TO YIELD 696 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 08 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC CITICORP 325 MILLION OF DEPOSITARY PREFERRED STOCK PRICED THROUGH DEALERS LED BY LEHMAN BROTHERS EACH SHARE REPRESENTS 10 OF A SHARE OF CITICORP NONCUMULATIVE PERPETUAL PREFERRED STOCK THE 13 MILLION SHARES OF 25 DEPOSITARY PREFERRED WERE PRICED WITH A DIVIDEND YIELD OF 8 THE SIZE OF THE OFFERING WAS RAISED FROM A PREVIOUSLY PLANNED 10 MILLION SHARES NONCALLABLE FOR FIVE YEARS THE SHARES ARE RATED BA2 BY MOODY'S AND TRIPLEBMINUS BY S&P UNION TANK CAR CO 100 MILLION OF EQUIPMENT TRUST PASSTHROUGH CERTIFICATES SERIES 1993A PRICED AT PAR TO YIELD 65 THE CERTIFICATES WHICH ARE NONCALLABLE WERE PRICED THROUGH SALOMON BROTHERS INC THE ISSUE HAS A FINAL DISTRIBUTION DATE OF APRIL 15 2008 DUE TO EARLY INTEREST PAYMENTS THE ISSUE HAS SEVENYEAR AVERAGE LIFE THE ISSUE WAS PRICED AT A SPREAD OF 076 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE THE CERTIFICATES ARE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P ARROW ELECTRONICS INC 51 MILLION COMMON SHARES PRICED AT 3250 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO BOOMTOWN INC 34 MILLION COMMON SHARES PRICED AT 2750 APIECE THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO LONE STAR STEAKHOUSE & SALOON INCFIVE MILLION COMMON SHARES PRICED AT 2575 APIECE THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES PEOPLESOFT INC 16 MILLION COMMON SHARES PRICED AT 3250 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ZARING HOMES INC INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 1350 APIECE THROUGH UNDERWRITERS LED BY DILLON READ & CO FORSYTH MONT 902 MILLION SERIES 1993A POLLUTION CONTROL REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP THE BONDS WHICH ARE FOR THE MONTANA POWER CO COLSTRIP PROJECT ARE 6125S PRICED AT 9875 THEY ARE TO YIELD 622 ON MAY 1 2023 MOODY'S HAS RATED THE ISSUE BAA1 S&P HAS ASSIGNED A TRIPLEBPLUS RATING AND FITCH INVESTORS SERVICE INC HAS ASSIGNED A SINGLEAMINUS RATING FEDERAL HOME LOAN MORTGAGE CORP 262 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1545 IS BACKED BY THE AGENCY'S 30YEAR 8 MORTGAGE SECURITIES BOULEVARD BANK NA 1081 MILLION OF AUTOMOBILE ASSETBACKED CERTIFICATES PRICED IN THREE PARTS THROUGH UNDERWRITER BEAR STEARNS & CO ACCORDING TO MCM CORPORATEWATCH THE 976 MILLION CLASS A SENIOR CERTIFICATES ARE PRICED AS 455S AT 999954 TO YIELD 458 A 39BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED TWOYEAR NOTE THE CERTIFICATES WITH AN AVERAGE LIFE OF 138 YEARS AND AN EXPECTED FINAL MATURITY OF MAY 15 1996 ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P PRICE TERMS ON THE 85 MILLION CLASS B SUBORDINATE CERTIFICATES WERE NOT PROVIDED THE CERTIFICATES ARE RATED BAA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE ALSO INCLUDES A 2 MILLION INTERESTONLY PLANNEDAMORTIZATION CLASS CLASS A CERTIFICATES PAY QUARTERLY THE REMAINING TWO CLASSES PAY MONTHLY BANQUE NATIONALE DE PARIS FRANCE 125 MILLION CANADIAN DOLLARS OF 75 EUROBONDS DUE JULY 7 1999 AT ISSUE PRICE 100841 VIA SCOTIA MCLEOD INC REOFFERED AT 99266 TO YIELD 7657 ANNUAL SPREAD 50 BASIS POINTS ABOVE 65 CANADIAN GOVERNMENT NOTE DUE 1998 OR 38 BASIS POINTS ABOVE INTERPOLATED GOVERNMENT YIELD CURVE FEES 1875 POINTS INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 12 BILLION FRENCH FRANCS OF 7 EUROBONDS DUE SEPT 13 2000 REOFFERED AT 993 VIA BANQUE NATIONALE DE PARIS YIELD 713 AT REOFFER SPREAD 225 BASIS POINTS ABOVE FRENCH TREASURY'S 85 DUE MARCH 2000 NV BANK NEDERLANDSE GEMEENTEN NETHERLANDS 150 BILLION ITALIAN LIRE OF 105 EUROBONDS DUE JUNE 18 2003 AT ISSUE PRICE 1011 VIA DEUTSCHE BANK AG LONDON YIELD 1065 ANNUAL AT COMANAGING BANK'S BREAKEVEN PRICE FEES 2 POINTS 9305250059 930525 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CARRGOTTSTEIN FOODS CO AN INITIAL OFFERING OF 88 MILLION SHARES GENERAL INSTRUMENT CORP AN OFFERING OF 300 MILLION CONVERTIBLE DEBENTURES INDUSTRIAL SCIENTIFIC CORP AN INITIAL OFFERING OF 750000 SHARES OF ITS COMMON STOCK VIA PARKER/HUNTER INC LASMO INC A UNIT OF LASMO PLC AN OFFERING OF 350 MILLION OF GUARANTEED NOTES VIA MERRILL LYNCH & CO GOLDMAN SACHS & CO AND MORGAN STANLEY & CO MARINE DRILLING CO AN OFFERING OF FIVE MILLION SHARES VIA SALOMON BROTHERS & CO SMITH BARNEY HARRIS UPHAM & CO AND SIMMONS & CO INTERNATIONAL PRESIDENT RIVERBOAT CASINOS INC AN OFFERING OF TWO MILLION COMMON SHARES VIA MONTGOMERY SECURITIES AND OPPENHEIMER CO 9305250058 930525 AT&T PLANNING TO UNVEIL ALLIANCES CREATING A GLOBAL TELEPHONE NETWORK BY JOHN J KELLER AMERICAN TELEPHONE & TELEGRAPH CO IS EXPECTED TO ANNOUNCE TODAY A BROAD JOINT VENTURE WITH COMMUNICATIONS CARRIERS IN EUROPE ASIA AND AUSTRALIA THAT WILL TURN AT&T'S LONGDISTANCE NETWORK INTO A GLOBAL SYSTEM MULTINATIONAL CORPORATIONS HAVE BEEN CLAMORING FOR THE MAJOR TELECOMMUNICATIONS CARRIERS TO BUILD GLOBAL NETWORKS THAT WOULD LET EMPLOYEES MAKE CALLS TO THEIR FOREIGN OFFICES AS EASILY AS THEY CAN CALL A FACILITY ACROSS THE STREET BILLING AND OTHER SERVICES WOULD ALSO BE SIMPLIFIED IN ONE CURRENCY THE VENTURE WILL INCLUDE CARRIERS IN JAPAN AUSTRALIA SINGAPORE AND POSSIBLY BELGIUM FRANCE AND GERMANY PEOPLE FAMILIAR WITH AT&T'S PLANS SAID AT&T IS EXPECTED TO INVEST SEVERAL HUNDRED MILLION DOLLARS IN THE VENTURE AMONG THE VENTURE'S RESPONSIBILITIES WILL BE MANAGING ALL VOICE AND DATA TRAFFIC GENERATED BY AT&T'S CORPORATE CUSTOMERS AMONG THE US ASIA EUROPE AND AUSTRALIA THE INDIVIDUALS SAID AT&T IS EXPECTED TO MAKE AN ANNOUNCEMENT ABOUT THE VENTURE TODAY AT NEWS CONFERENCES IN WASHINGTON TOKYO AND BRUSSELS AT&T DECLINED TO DISCUSS THE SUBJECT OF THE NEWS CONFERENCES AT&T'S VENTURE COULD BE A FORMIDABLE OBSTACLE TO MCI COMMUNICATIONS CORP'S AND BRITISH TELECOMMUNICATIONS PLC'S INDIVIDUAL EFFORTS TO BUILD THEIR OWN GLOBAL NETWORKS KOKUSAI DENSHIN DENWA JAPAN'S MAJOR LONGDISTANCE CARRIER AUSTRALIA TELECOM AND SINGAPORE TELECOM ARE THE ENTRENCHED NATIONAL PLAYERS IN EACH OF THEIR MARKETS AN ALLIANCE WOULD GIVE AT&T DIRECT ACCESS TO A HUGE NEW CUSTOMER BASE AND FORCE MCI AND BT TO LINK ARMS WITH LOWERTIER PLAYERS FOR AT&T'S FOREIGN PARTNERS A LINK WITH THE TELECOMMUNICATIONS GIANT WOULD MAKE THEM GLOBAL AS WELL AT&T'S PARTNERS COULD USE AT&T'S NETWORK TO OFFER THEIR OWN MULTINATIONAL CUSTOMERS INTERCONTINENTAL SERVICES RATHER THAN MOSTLY DOMESTIC TRANSMISSIONS THE NEW VENTURE WILL OPERATE AN INNOVATIVE NETWORK THE INDIVIDUALS SAID HIGHPERFORMANCE COMPUTER PROCESSORS USING SPECIAL AT&T SOFTWARE WOULD LINK AT&T TO THE FOREIGN CARRIERS THROUGH A SPECIAL SIGNALING NETWORK THIS WOULD ALLOW TRAFFIC TO PASS ANYWHERE IN THE WORLD AS IF IT WERE ON AT&T'S REGULAR LONGDISTANCE NETWORK IN THE US AND IT WOULD LET AT&T'S FOREIGN PARTNERS OFFER AT&TLIKE SERVICES TO THEIR CORPORATE CUSTOMERS AT&T COULD EVEN SET UP INTERNATIONAL TOLLFREE 800 SERVICES AT&T HAS BEEN LOOKING FOR FOREIGN COMMUNICATIONS CARRIERS TO CARRY ITS TRAFFIC AND COORDINATE BILLING SO IT DOESN'T HAVE TO BUILD ITS OWN FACILITIES ON FOREIGN SOIL IN THE PAST FEW MONTHS AT&T HAS FORMED ALLIANCES IN CANADA WITH UNITEL COMMUNICATIONS INC THE NEW COMPETITOR TO STENTOR THE LONGDISTANCE CONSORTIUM OWNED BY CANADA'S MAJOR PHONE COMPANIES AND AT&T IS SEEKING A FIRMER FOOTHOLD IN EUROPE AS IT SEEKS TO BUILD A GLOBAL SERVICES NETWORK COMPETITORS ARE MAKING SIMILAR MOVES MCI AT&T'S MAIN LONGDISTANCE SERVICE COMPETITOR IN THE US ALIGNED ITSELF WITH STENTOR BT IS SEEKING A PARTNER OR POSSIBLE ACQUISITION IN THE US TO CARRY ITS TRAFFIC 9305250057 930525 WHO'S NEWS KIDDER'S MEGARGEL RESIGNS MERGERSACQUISITIONS POST NEW YORK KIDDER PEABODY & CO'S COHEAD OF MERGERS AND ACQUISITIONS BJ MEGARGEL HAS RESIGNED FROM THE SECURITIES FIRM A UNIT OF GENERAL ELECTRIC CO MR MEGARGEL SAW SOME OF HIS AUTHORITY DIMINISHED WHEN KIDDER PEABODY LAST AUGUST MADE EDWARD MIDGELEY COHEAD OF MERGERS AND ACQUISITIONS ALONG WITH MR MEGARGEL AT THE SAME TIME MR MIDGELEY WAS COHEAD OF INVESTMENT BANKING WHICH OVERSEES MERGERS AND ACQUISITIONS MAKING HIM THE SENIOR OF THE TWO MR MEGARGEL HAD WORKED WITH SCOTT NEWQUIST KIDDER'S FORMER INVESTMENT BANKING CHIEF WHO WAS FORCED OUT LAST YEAR AND PEOPLE CLOSE TO THE FIRM SAY HE HAD DIFFERENCES OVER THE DIRECTION INVESTMENT BANKING WAS TAKING AT KIDDER ALSO A LUCRATIVE COMPENSATION CONTRACT MR MEGARGEL HAD WITH KIDDER RECENTLY EXPIRED HE RESIGNED LAST WEEK A KIDDER SPOKESWOMAN CONFIRMED MR MEGARGEL JOINED KIDDER IN 1989 FROM SHEARSON LEHMAN BROTHERS HE ALSO WAS A MEMBER OF KIDDER'S 18MEMBER MANAGEMENT COMMITTEE MR MEGARGEL COULDN'T BE REACHED FOR COMMENT ON HIS RESIGNATION 9305250056 930525 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ACCUSED OF INSIDER TRADING FRANZ STEINKUEHLER PRESIDENT OF IG METALL GERMANY'S BIGGEST UNION OFFERED TO RESIGN AND ADMITTED HE MADE A MISTAKE HE ALSO OFFERED TO TURN OVER PROFITS FROM HIS TRADES INCLUDING MERCEDES AG HOLDING THE HOLDING COMPANY FOR DAIMLERBENZ AG TO A BANK ACCOUNT SUPPORTING IG METALL'S EASTERN GERMAN OPERATIONS DURING AN INVESTIGATION HE WILL STEP DOWN FROM DAIMLER'S SUPERVISORY BOARD MEANWHILE FINANCE MINISTER THEO WAIGEL SAID HE WOULD PROPOSE LEGISLATION TO OUTLAW INSIDER TRADING WHICH GERMAN LAW DOESN'T SPECIFICALLY BAN THE BILL WOULD PROHIBIT TRADING ON CONFIDENTIAL INFORMATION BE ENFORCED BY A FEDERAL REGULATOR AND SET PRISON SENTENCES OR FINES FOR VIOLATIONS CUBA AND RUSSIA AGREED TO DEVELOP ECONOMIC TIES THOUGH A RUSSIAN OFFICIAL RULED OUT FINANCIAL AID TO HAVANA THE ACCORD COVERS JOINT PRODUCTION OF FERTILIZERS AND ALLOWS FOR FUTURE DEALS ON JOINT COMMERCIAL AND TOURISM PROJECTS THE SOVIET UNION ONCE WAS CUBA'S PATRON BUT AID TO THE ISLAND STATE AND CUBA'S TRADE DRIED UP WHEN THE EAST BLOC COLLAPSED THROWING CUBA'S ECONOMY INTO FREE FALL ZAMBIA CONCLUDED NEGOTIATIONS AND SALES AGREEMENTS FOR THE FIRST 19 GOVERNMENTOWNED COMPANIES TO BE PRIVATIZED THE DEALS ARE TO BE UNVEILED BY JUNE 30 IN A FIVEYEAR PROGRAM THE SOUTHERN AFRICAN COUNTRY WILL SELL OFF MORE THAN 150 COMPANIES THAT WERE NATIONALIZED IN THE 1960S AND 1970S AND THAT REPRESENT 80 OF THE ECONOMY THE GOVERNMENT WILL SOON INVITE BIDS FOR 32 ENTERPRISES TO BE SOLD OFF IN A SECOND STAGE BY YEAR END WHEN A THIRD PHASE IS TO BE ANNOUNCED MULTINATIONAL COMPANIES THAT ONCE OWNED THE ZAMBIAN ASSETS WILL GET PREFERENCE TO BUY THEM BACK BUT OTHER INVESTORS ARE EXPECTED TO BID THE CZECH REPUBLIC STARTED DISTRIBUTING SHARES OF 987 STATE ENTERPRISES TO PRIVATE INVESTORS TWO MILLION INDIVIDUALS AND 400 INVESTMENT FUNDS WILL GET THE SHARES BY JUNE 30 LAUNCHING A CAPITAL MARKET AIMED AT REVITALIZING OBSOLETE INDUSTRIES BEFORE CZECHOSLOVAKIA SPLIT INTO TWO STATES JAN 1 CITIZENS BOUGHT 35 BOOKS OF COUPONS FOR RIGHTS TO STOCKS TO HOLD THEMSELVES OR DEPOSIT WITH INVESTMENT FUNDS THE SHARES HAVE AN INITIAL VALUE OF 133 BILLION SLOVAKIA BEGAN DISTRIBUTING SHARES LAST MONTH THE EUROPEAN COMMUNITY TRADE COMMISSIONER LEON BRITTAN EXPRESSED OPTIMISM ABOUT A BREAKTHROUGH SOON IN WORLD TRADE NEGOTIATIONS HE CITED PROGRESS IN TALKS ON REDUCING BARRIERS TO TRADE IN INDUSTRIAL PRODUCTS AND SERVICES RAISING HOPES FOR AN ACCORD AMONG INDUSTRIALIZED COUNTRIES PRIOR TO AN ECONOMIC SUMMIT IN TOKYO IN JULY A COMMITMENT TO IMPROVING MARKET ACCESS IS CONSIDERED CRUCIAL TO CONCLUDING THE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE BUT IN REMARKS THAT SEEMED AIMED AT THE US AND EC GATT'S CHIEF ARTHUR DUNKEL WARNED OF INCREASED PROTECTIONIST PRESSURES AND REGIONAL TRADE ARRANGEMENTS POLAND OPENED A TRIAL OF THE OWNER OF WHAT WAS THE COUNTRY'S FIRST PRIVATE SAVINGS BANK LECH GROBELNY IS CHARGED IN PART WITH MISAPPROPRIATING 9 BILLION ZLOTYS 556000 FROM SAVINGS DEPOSITS AT HIS SAFE SAVINGS BANK IF CONVICTED HE FACES A MAXIMUM OF 10 YEARS IN PRISON SAFE SAVINGS WAS OPENED AFTER POLAND INTRODUCED FREEMARKET REFORMS IN 1990 MR GROBELNY ALSO OWNED DORCHEM CO AN OPERATOR OF CURRENCYEXCHANGE OFFICES AND PHOTO LABS ABOUT 10000 BANK DEPOSITORS HAVE FILED SUITS AGAINST MR GROBELNY ROBBERY IS BOOMING ALONG WITH TRADE BETWEEN SOUTHERN CHINA AND HONG KONG AND MANY INSURERS ARE FIGHTING LOSSES BY RAISING PREMIUMS OR IMPOSING STRICT CONDITIONS ON POLICIES FOR FREIGHT SHIPMENTS WITH SOUTHERN CHINA'S ECONOMY GROWING AT A 20 ANNUAL RATE LAND AND SEA TRADE WITH HONG KONG IS SOARING AND ATTRACTING ROBBERS HIGHJACKERS AND THIEVES HONG KONG INSURERS HAVE BEGUN REQUIRING TWO DRIVERS ON TRUCKS AND POLICE SUPERVISION OF LOADING AND UNLOADING VAST AMOUNTS OF RAW MATERIALS AND SEMIFINISHED PRODUCTS ARE SHIPPED THROUGH HONG KONG FOR PROCESSING IN CHINESE FACTORIES WHICH SEND PRODUCTS BACK THROUGH HONG KONG TO CONSUMERS WORLDWIDE THIS REEXPORT TRADE ACCOUNTS FOR ABOUT THREEFOURTHS OF HONG KONG'S TOTAL EXPORTS RISK HAS RISEN AS CARGO DEMAND HAS OVERWHELMED POOR ROAD AND RAIL LINKS AND PEARL RIVER BARGE TRAFFIC HAS QUADRUPLED SINCE 1991 FREIGHT CLAIMS PAID BY CHINESE INSURERS JUMPED TO 70 MILLION IN 1991 FROM 49 MILLION IN 1990 AND 295 MILLION IN 1989 CHILE'S GROSS NATIONAL PRODUCT IN THE FIRST QUARTER GREW 82 SLOWING FROM 107 A YEAR EARLIER AND 104 FOR ALL OF 1992 THE GOVERNMENT IS AIMING FOR A 6 PACE THIS YEAR TO PREVENT ECONOMIC OVERHEATING IN A STEP TOWARD FREEING PRICES OF OIL AND ENERGY PRODUCTS RUSSIAN PRESIDENT BORIS YELTSIN LIFTED CONTROLS ON RETAIL GASOLINE PRICES FROZEN SINCE APRIL 9 AFTER A ROLLBACK TO PREMARCH LEVELS A LITER OF 93OCTANE GAS FOR EXAMPLE NOW SELLS FOR 45 RUBLES 48 US CENTS RUSSIANS' SALARIES AVERAGE 8000 RUBLES A MONTH 9305250055 930525 LEISURE & ARTS BOOKSHELF BUGGING OUT BY DAVE SHIFLETT HUMAN BEINGS THOUGH CAPABLE OF DEVELOPING AN APPRECIATION FOR WINGTIPS GOOSE LIVER AND GIN GENERALLY NEVER COME AROUND TO DOING THE SAME FOR BUGS SUE HUBBELL WHO PROBABLY NEVER MET A CONGO FLOOR MAGGOT SHE DIDN'T LOVE MAY NOT HAVE DONE MUCH TO CHANGE ALL THAT BUT HER NEW BOOK BROADSIDES FROM THE OTHER ORDERS RANDOM HOUSE 304 PAGES 23 IS SUFFICIENT TO REMIND US THAT WHEN WE SWAT THOSE FLIES AND GAS THOSE COCKROACHES WE ARE KILLING CREATURES WITH CHARMS ALL THEIR OWN LIKE OTHER WRITERS IN THE BUG LITERATURE MS HUBBELL KNOWS THAT THE QUICKEST WAY TO INTEREST READERS IS BY SUPPLYING THEM WITH UNUSUAL BUG FACTS WITH WHICH THEY CAN STUN FRIENDS AND ACQUAINTANCES IT IS ONE THING TO BLATHER ON ABOUT THE LONG BOND OR SOME GUY'S BATTING AVERAGE QUITE ANOTHER TO POINT OUT THAT A MALE MOTH CAN SMELL A FEMALE MOTH SEVEN MILES AWAY OR THAT TICKS SOMETIMES LAY DORMANT FOR DECADES BETWEEN MEALS BEING ROUSED FOR DINNER BY A WHIFF OF THE CARBON DIOXIDE WE EMIT WHILE PUFFING THROUGH THEIR HABITAT THE FIRST STUNNER ONE ENCOUNTERS IN MS HUBBELL'S BOOK WAS ACTUALLY LIFTED FROM THE NEW YORK TIMES WHICH HAS REPORTED THAT FOR EVERY POUND OF HUMAN FLESH ON THIS PLANET THERE ARE 300 POUNDS OF INSECT FLESH AS WE REACH FOR OUR DDT MS HUBBELL ALSO TELLS US THAT A SWARM OF MIDGES CAN NUMBER 50 MILLION INDIVIDUALS AND THAT ONE RESEARCHER DRIED AND WEIGHED SAMPLES OF ONE SPECIES TANYTARSUS LEWISI AND CONCLUDED THAT AN ENTIRE SWARM WEIGHED ONLY ONE OUNCE CALCULATING FROM THOSE FIGURES IT WOULD SEEMINGLY TAKE AROUND 110 BILLION BUZZING MIDGES TO EQUAL ONE ROSS PEROT SOAKING WET THIS SORT OF INFORMATION CAN RAISE FAINT FEELINGS OF PARANOIA AMONG SOME PEOPLE AND MS HUBBELL THOUGH NOT AN ALARMIST BY ANY MEANS DOES NOT STINT ON RELATING THE HARROWING NATURE OF BUG LIFE DISEASE CAUSED BY BLACK FLY INFESTATION FOR EXAMPLE HAS CAUSED SEVERE PROBLEMS THERE ARE AREAS SUCH AS WEST AFRICA WHERE IN THE RECENT PAST 30 OF ADULT MEN WERE BLINDED FROM IT AND AS A RESULT THEIR LIFE EXPECTANCY WAS REDUCED BY 13 YEARS FROM THAT OF A SIGHTED MAN NOR IS THE DAMAGE CONFINED TO HUMANS MANY OF THE ELKAUTO COLLISIONS IN MAINE ARE ALSO BLAMED ON BLACK FLIES WHOSE TORMENTING BITES ARE THOUGHT TO DRIVE THE ANIMALS OUT OF THE FORESTS AND INTO THE ROADWAYS AND THERE'S THIS ANECDOTE FROM A 1940 SMITHSONIAN REPORT DURING THE SUMMER OF 1934 JAMES ASHDOWN JR AND HIS MOTHER WERE WALKING IN THE WOODS AT KENORA ONTARIO AND HEARD A CONTINUOUS RATTLING INVESTIGATION SHOWED IT TO BE A MALE RUBYTHROATED HUMMINGBIRD ON THE GROUND WITH A HUGE DRAGONFLY ON THE BIRD'S BACK IT HAD SEIZED THE BIRD BY THE NECK WHILE SOME OF THIS INFORMATION HAS THE SAME CRINGE POTENTIAL AS A BAD LEPER JOKE AFTER A WHILE A SENSE OF ADMIRATION IS LIKELY TO SET IN REGARDING DRAGONFLY NYMPHS THE AUTHOR WRITES MANY SPECIES OF NAIADS BREATH AND SCOOT ABOUT AT THE SAME TIME THEY HAVE GILLS IN THE RECTUM SUCK WATER THROUGH IT EXTRACT THE OXYGEN AND EXPEL THE WATER VIOLENTLY THUS MOVING ALONG BY JET PROPULSION AFTER BLINKING ONCE OR TWICE YOU JUST SIT THERE IN AWE OF THE THING THE AUTHOR ALSO SHARES FACTS ABOUT BUG LIFE THAT SOUND STRANGELY FAMILIAR A PASSAGE ABOUT DADDY LONGLEGS ALSO KNOWN AS AIR CRABS IS REMINISCENT OF ACTIVITIES A CUB REPORTER MIGHT ENCOUNTER WHILE READING THE SATURDAY POLICE BLOTTER THERE IS COMPETITION AMONG MALES DURING PEAK MATING ACTIVITY THIS IS WHEN SCHROETER NOTED FRENZIES OF PUMPING ACTIVITY AMONG MALES AND THERE ARE OFTEN BATTLES MALES TUSSLING WITH ONE ANOTHER GRABBING AND ATTEMPTING TO BREAK OFF THE LEGS OF THEIR RIVALS SOMETIMES DURING THESE FREEFORALLS SMALLER EVEN DISABLED MALES WITH LEGS MISSING ARE ABLE TO SNEAK IN AND MATE WITH WILLING FEMALES THUS AVOIDING COMPETITION ENTIRELY BESIDES SEX WHICH THE AUTHOR CALLS LOVEMAKING MS HUBBELL ALSO EMPHASIZES THE NATIVE INTELLIGENCE OF HER SUBJECTS MOTH EAR MITES FOR INSTANCE WILL ONLY INFEST AND DEAFEN ONE OF THEIR HOST'S EARS LEAVING THE OTHER CAPABLE OF DETECTING PREDATORS THUS PRESERVING MITE AND MOTH IT'S ENOUGH TO MAKE YOU WANT TO PAT THE LITTLE FELLOWS ON THE HEAD AND SAY WELL DONE IF THIS BOOK HAS ONE SHORTCOMING IT IS THAT WE MAY HEAR A BIT MORE ABOUT MS HUBBELL THAN WE WOULD CARE TO WE ARE AT 10000 FEET AND THE AIR IS SO THIN SHE WRITES OF ONE OF HER BUGCOUNTING EXCLUSIONS I FEEL A LITTLE GIDDY PERHAPS MERELY FROM ALTITUDE BUT ALSO WITH THE TINGLING RICHNESS OF INTENSE SEXY DIVERSITY PLANT AND ANIMAL WITH EVERY ORGANISM IN A HURRY TO COME TO MATURITY AND REPRODUCE IN THE SHORT ALPINE SUMMER THAT IS ALL THAT THE ELEVATION ALLOWS A SWARM OF SUCH GNATS SMACKS UP ON THE READER'S WINDSHIELD THEN AGAIN PEOPLE WHO SPEND A LOT OF TIME WATCHING BUGS MATE WITH COUSINS EAT THEIR YOUNG EAT THEIR NEPHEWS MATE WITH SISTERS AND SUCK THE BLOOD OF ELKS SHOULD BE GIVEN A LITTLE LEEWAY IT IS NOT THE ORDINARY PERSON WHO CAN MAKE THIS OBSERVATION ABOUT THE PRIVATE LIFE OF A BUG YOU VERY SELDOM FIND A VIRGIN FEMALE PARNASSIUS WHICH IS NOT ONLY AN INTERESTING FACT BUT CONFIRMS MANY LONGSTANDING SUSPICIONS MR SHIFLETT IS ASSISTANT EDITORIAL PAGE EDITOR OF THE ROCKY MOUNTAIN NEWS 9305250054 930525 BUSINESS BRIEF RIO HOTEL & CASINO INC CASINO EXPANSION TOTALING 25 MILLION TO BEGIN IN JULY RIO HOTEL & CASINO INC SAID IT WILL BEGIN A 25 MILLION EXPANSION OF ITS LAS VEGAS CASINO IN JULY WITH AN EXPECTED COMPLETION BY NEXT APRIL THE LAS VEGAS GAMBLING AND HOTEL CONCERN ALSO SAID ITS LENDERS AGREED TO REPLACE AN EXISTING 53 MILLION REVOLVING CREDIT WITH A 65 MILLION CONSTRUCTION LOAN AND REVOLVING CREDIT LINE IT SAID THE MATURITY OF THE NEW LOAN WILL BE EXTENDED TO 1999 FROM 1996 THE NEW CREDIT ARRANGED WITH A GROUP LED BY BANK OF AMERICA AND FIRST INTERSTATE BANK IS SUBJECT TO A DEFINITIVE AGREEMENT EXPECTED IN JULY RIO HOTEL'S CASINO EXPANSION WILL INCLUDE AN 18000 SQUAREFOOT EXPANSION OF THE CASINO AREA A RESTAURANT AND BIGGER PARKING AREA SEPARATELY RIO HOTEL IS CURRENTLY ADDING A 437ROOM HOTEL TOWER TO ITS LAS VEGAS SITE THAT 37 MILLION PROJECT IS EXPECTED TO BE COMPLETED IN DECEMBER 9305250053 930525 BUSINESS BRIEF PIONEER ELECTRONIC CORP EXPORT PRICES ARE INCREASED IN RESPONSE TO HEALTHY YEN PIONEER ELECTRONIC CORP SAID IT WILL INCREASE EXPORT PRICES ON ITS AUDIO AND VIDEO PRODUCTS BY 2 TO 3 STARTING IN OCTOBER TO COPE WITH THE STRONGER YEN PIONEER TOKYO ALSO PLANS TO INCREASE THE PERCENTAGE OF JAPANESEPRODUCED GOODS SOLD ABROAD IN THE NEXT THREE TO FIVE YEARS TO 50 FROM ITS PRESENT 30 PIONEER RECENTLY REPORTED THAT ITS PRETAX PROFIT FELL 52 TO 2845 BILLION YEN 2574 MILLION IN THE YEAR ENDED MARCH 31 OVERSEAS SALES WERE 62 OF REVENUE A STRONGER YEN MEANS INCOME DERIVED IN FOREIGN RELATIVELY WEAKER CURRENCIES IS CONVERTED TO YEN AT UNFAVORABLE RATES THUS EATING INTO RETURNS FROM OVERSEAS SALES PIONEER ALSO PLANS TO CUT COSTS BY STANDARDIZING COMPONENTS AND REDUCING CAPITAL INVESTMENT BY MORE THAN 30 SEPARATELY PIONEER SAID ITS SPANISH SUBSIDIARY SIGNED A PACT WITH PLANETA A LARGE PUBLISHING GROUP IN SPAIN TO SUPPLY 30000 LASER DISC/COMPACT DISC PLAYERS AND 600000 CUSTOMMADE LASER DISCS IN THE EUROPEAN TELEVISION FORMAT PAL 9305250052 930525 COMMODITIES PETROLEUM FALLS ON PERCEPTIONS OF OVERSUPPLY JULY CRUDEOIL FUTURES DROP TO 1972 A BARREL BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL PETROLEUM PRICES FELL ON RENEWED PERCEPTIONS OF AN OVERSUPPLY IN WORLD OIL MARKETS IN US FUTURES TRADING LIGHT LOWSULFUR CRUDE OIL FOR JULY DELIVERY DROPPED 16 CENTS A BARREL TO SETTLE AT 1972 FUELS FUTURES PRICES ALSO DECLINED ON THE NEW YORK MERCANTILE EXCHANGE BOTH THE JUNE AND JULY GASOLINE CONTRACTS WERE DOWN AROUND ONEHALF CENT A GALLON TO SETTLE AT 5873 CENTS AND 589 CENTS A GALLON RESPECTIVELY DESPITE THE NEARNESS OF THE TRADITIONAL MEMORIAL DAY START OF THE SOCALLED DRIVING SEASON NATURAL GAS FUTURES PRICES ALSO WERE UNDER PRESSURE BECAUSE OF FALLING PRICES IN THE CASH MARKET THE JULY GAS CONTRACT FELL 108 CENTS TO SETTLE AT 2009 PER MILLION BRITISH THERMAL UNITS A MILLION BTUS IS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET OF NATURAL GAS THE US CRUDE DECLINES APPARENTLY HELPED TO TRIGGER A SELLOFF IN LONDON FUTURES TRADING THE JULY BRENT BLEND CRUDE WAS DOWN 10 CENTS A BARREL TO 1833 AT THE CLOSE ON THE INTERNATIONAL PETROLEUM EXCHANGE THERE WAS LITTLE FUNDAMENTAL NEWS TO ACCOUNT FOR THE PRICE DROPS ALTHOUGH TECHNICAL REASONS WERE CITED BY SOME MANY TRADERS AND ANALYSTS SAID THERE WAS JUST TOO MUCH OIL AROUND WHATEVER THE REASON FOR YESTERDAY'S DECLINES WORLD OIL MARKETS ARE BEGINNING TO SHOW INCREASING SIGNS OF WEAKNESS RATHER THAN THE USUAL FIRMING IN ADVANCE OF A MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES OPEC'S OIL MINISTERS MEET JUNE 8 IN GENEVA TO SET NEW PRODUCTION LEVELS ALI AHMAD ALBAGHLI THE KUWAITI OIL MINISTER YESTERDAY RENEWED KUWAIT'S CLAIM THAT ITS QUOTA SHOULD RISE 400000 BARRELS A DAY TO TWO MILLION BARRELS A DAY FOR THE THIRD QUARTER THERE IS AN AWFUL LOT OF CRUDE AND PRODUCTS ON THE MARKET AND NO ONE THINKS THIS IS GOING TO BE A GREAT MEETING FOR OPEC SAID JIM TURNER AN ENERGY ANALYST WITH PEGASUS ECONOMETRIC GROUP OPEC SECRETARYGENERAL SUBROTO SAID ON A VISIT TO HOUSTON HOWEVER THAT THE ORGANIZATION'S ECONOMIC COMMISSION IS ESTIMATING WORLD OIL DEMAND WILL RISE SOME 700000 BARRELS A DAY IN THE THIRD QUARTER ASSUMING THAT NONOPEC PRODUCTION REMAINS MORE OR LESS THE SAME IT MEANS OPEC WILL BE ABLE TO ENJOY THAT INCREASE IN THE THIRD QUARTER MR SUBROTO TOLD A NEWS CONFERENCE BUT HE ADDED THAT WE CANNOT SAY IN ADVANCE HOW SUCH AN INCREASE MAY BE DIVIDED AMONG THE 12 MEMBERS OF OPEC INCLUDING KUWAIT IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS GRAIN FUTURES PRICES DECLINED SLIGHTLY BECAUSE OF FORECASTS THAT WEATHER WILL IMPROVE ALLOWING FARMERS TO CONTINUE PLANTING THEIR CROPS OF CORN AND SOYBEANS PLANTING OF BOTH GRAINS IS BEHIND SCHEDULE BECAUSE OF THE UNUSUALLY WET AND COLD WEATHER THIS SPRING BUT YESTERDAY'S FORECAST OF A WARMING TREND BODED WELL FOR FARMERS TRYING TO COMPLETE THEIR PLANTINGS AND PUSHED FUTURES PRICES DOWN AT THE CHICAGO BOARD OF TRADE SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO CORN FOR JULY DELIVERY WAS DOWN ONE CENT TO 22725 CENTS A BUSHEL WHILE JULY SOYBEANS FELL TWO CENTS TO 606 A BUSHEL AN AGRICULTURE DEPARTMENT PLANTINGPROGRESS SURVEY RELEASED AFTER THE END OF TRADING YESTERDAY SHOWED THAT THE NATION'S CORN CROP IS 71 PLANTED COMPARED WITH A FIVEYEAR AVERAGE OF 87 ON THIS DATE SOYBEANS WERE 25 PLANTED THE REPORT SAID VERSUS A FIVEYEAR AVERAGE OF 47 LIVESTOCK AND MEATS PORKBELLY FUTURES PRICES DECLINED ON A REPORT THAT SHOWED HIGHERTHANEXPECTED STOCKS OF PORK BELLIES OR UNCURED BACON IN COLD STORAGE ON FRIDAY IN A WIDELY WATCHED REPORT THE AGRICULTURE DEPARTMENT SAID STOCKS OF PORK BELLIES IN US COLDSTORAGE WAREHOUSES WERE AT 794 MILLION POUNDS MOST LIVESTOCK ANALYSTS HAD BEEN EXPECTING THE REPORT TO SHOW ABOUT 755 MILLION POUNDS OF PORK BELLIES IN STORAGE SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS THE RESULTING DECLINE IN PORKBELLY FUTURES PRICES YESTERDAY AT THE CHICAGO MERCANTILE EXCHANGE WAS SMALLER THAN EXPECTED MR VAUGHT SAID BECAUSE OF STRENGTH ON THE CASH MARKET FOR PORK BELLIES PORK BELLIES FOR JULY DELIVERY FELL 067 CENT TO 4285 CENTS A POUND 9305250051 930525 BUSINESS BRIEF APPLE COMPUTER INC IBM AND TOSHIBA TO PACKAGE CLARIS UNIT'S SOFTWARE IN PCS CLARIS CORP APPLE COMPUTER INC'S SOFTWARE UNIT SIGNED AN AGREEMENT TO PACKAGE ITS CLARISWORKS FOR WINDOWS SOFTWARE IN INTERNATIONAL BUSINESS MACHINES CORP'S AND TOSHIBA CORP'S PERSONAL COMPUTERS THE AGREEMENT BOOSTS CLARIS'S EFFORT TO DENT THE MARKET FOR SOFTWARE THAT RUNS ON MICROSOFT CORP'S WINDOWS OPERATING SYSTEM CLARIS BASED IN CUPERTINO CALIF CURRENTLY HAS ONLY A SMALL SHARE OF THE WINDOWS SOFTWARE MARKET WHICH IS DOMINATED BY MICROSOFT UNDER THE AGREEMENT IBM AND TOSHIBA HAVE AGREED TO PACKAGE IN CERTAIN COMPUTER MODELS THE CLARISWORKS PROGRAM WHICH COMBINES WORD PROCESSING PROGRAMS WITH SPREADSHEETS DATABASE AND GRAPHICS PROGRAMS CLARIS OFFICIALS SAID THE COMPANY HAS SHIPPED ABOUT 15000 UNITS OF THE SOFTWARE SINCE IT WAS INTRODUCED THREE WEEKS AGO 9305250050 930525 BUSINESS BRIEF HARTFORD STEAM BOILER INSPECTION LARGE CLAIMS WILL RESULT IN LESS PROFIT FOR 2ND PERIOD HARTFORD STEAM BOILER INSPECTION & INSURANCE CO SAID THAT CONTINUING CLAIMS FROM A WINTER BLIZZARD AND OTHER LARGE CLAIMS WILL RESULT IN LOWER EARNINGS FOR THE CURRENT SECOND QUARTER WILSON WILDE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE HARTFORD CONN COMPANY SAID CLAIM EXPENSES WILL BE 12 MILLION MORE THAN WAS EXPECTED IN THE CURRENT QUARTER ALTHOUGH HE SAID IT IS TOO EARLY IN THE QUARTER TO ACCURATELY FORECAST EARNINGS RESULTS WILL BE BELOW THE 86 CENTS A SHARE EARNED IN THE FIRST QUARTER OF THIS YEAR IN THE YEARAGO QUARTER THE COMPANY REPORTED NET INCOME OF 187 MILLION OR 90 CENTS A SHARE MR WILDE SAID THAT HARTFORD STEAM HAS INSTITUTED SIGNIFICANT PRICE AND COVERAGE ADJUSTMENTS PARTICULARLY FOR LARGER ACCOUNTS IN RECENT MONTHS 9305250049 930525 ALLIEDSIGNAL'S LOWE GOOD NAMED TO COMMERCE POST WASHINGTON THE COMMERCE DEPARTMENT MOVING TO BOLSTER ITS ROLE IN TECHNOLOGY AND TRADE NAMED ALLIEDSIGNAL INC SENIOR VICE PRESIDENT MARY LOWE GOOD UNDERSECRETARY OF TECHNOLOGY SEPARATELY THE DEPARTMENT IS EXPECTED TO NAME JEFFREY GARTEN A FORMER PARTNER AT THE INVESTMENT BANKING FIRM OF BLACKSTONE GROUP AS UNDERSECRETARY FOR INTERNATIONAL TRADE UNDER THE BUSH ADMINISTRATION THE TECHNOLOGY JOB WAS LARGELY CEREMONIAL WITH THE UNDERSECRETARY RELEGATED TO MAKING HORTATORY SPEECHES TO HIGHTECH EXECUTIVES BUT CLINTON HAS SAID HE WANTS TO EXPAND THE COMMERCE DEPARTMENT'S TECHNOLOGY ROLE AND HAS ASKED CONGRESS TO GREATLY INCREASE THE BUDGET FOR THE DEPARTMENT'S TECHNOLOGY PROGRAMS MS GOOD WOULD BE CHARGED WITH HELPING TO SHAPE THE EXPANDED PROGRAM THE 61YEAROLD CHEMIST HAS A LONG CAREER IN RESEARCH BUSINESS AND GOVERNMENT WORK AT ALLIEDSIGNAL SHE DIRECTS RESEARCH IN AEROSPACE AND AUTOMOTIVE PRODUCTS AND ADVANCED MATERIALS DURING THE BUSH ADMINISTRATION SHE ALSO HEADED THE BOARD THAT OVERSEES THE NATIONAL SCIENCE FOUNDATION FOR THE TRADE SLOT THE COMMERCE DEPARTMENT PLANS TO TAP A FORMER PARTNER OF TREASURY DEPUTY SECRETARY ROGER ALTMAN MR GARTEN LIVED FOR THREE YEARS IN TOKYO OPENING THE JAPANESE OFFICE OF SHEARSON LEHMAN BROTHERS INC HE ALSO RECENTLY WROTE A SOMBER ACCOUNT OF US RELATIONS WITH JAPAN AND GERMANY CALLED A COLD PEACE 9305250048 930525 MARKETING & MEDIA ADVERTISING PEP BOYS' MANNY MOE & JACK ARE BEING DRIVEN TO JUNKYARD BY KEVIN GOLDMAN MANNY MOE & JACK ARE HEADED FOR THE UNEMPLOYMENT LINE AND NONE TOO SOON THE TRIO IS BETTER KNOWN AS THE PEP BOYS FRONT MEN FOR THE PHILADELPHIABASED AUTO PARTS AND REPAIR CHAIN OF THE SAME NAME AND THEY APPEARED IN LESSTHANRIVETING ADS THAT WENT HEAVY ON SHOTS OF CARS UP ON THE RACK WHEN THE CHAIN DECIDED TO SCRAP THEM IT ALSO SCRAPPED THE AD AGENCY THAT CREATED THEM ADMARKETING OF LOS ANGELES BUT PEP BOYS DIDN'T BOTHER TO SIGN UP A RAFT OF EAGER AGENCIES AND REQUIRE THEM TO TAKE PART IN AN EXPENSIVE REVIEW FOR WHAT THE CHAIN SAYS IS A 50 MILLION ACCOUNT INSTEAD THE CARREPAIR CHAIN PICKED A HANDFUL OF SHOPS AND SIMPLY TOOK A LOOK AT THEIR PROMOTIONAL REELS ESSENTIALLY AN ELECTRONIC RESUME OF THEIR WORK AND THEN PEP BOYS HIRED ITS NEW AGENCY AYER IT DIDN'T DEMAND SPECIFIC MOCKUP AD CAMPAIGNS OR ASK FOR STRATEGIC PLANS AN UNUSUAL OMISSION IN THE AD BUSINESS USUALLY COMPANIES BECKON ALLTOOWILLING AD AGENCIES INTO A REVIEW AND EXPECT TO SEE A MODEL FOR A CAMPAIGN NOT TO MENTION A DETAILED MARKETING PLAN OFTEN THE PROPOSED AD CAMPAIGN THAT LANDS THE BUSINESS ISN'T EVEN ULTIMATELY USED AN AD AGENCY'S COSTS CAN EXCEED 100000 ALTHOUGH THE TAB IS SOMETIMES PICKED UP BY THE CLIENT SOME AD EXECUTIVES PRIVATELY GRUMBLE THAT THIS EXERCISE PAYS OFF FAR TOO OFTEN FOR THE CLIENT AND TOO RARELY FOR THE AGENCY THINK ABOUT THE AMOUNTS OF MONEY WASTED ON SPECULATED PITCHES SAYS TOM MAXEY VICE CHAIRMAN AND CHIEF OPERATING OFFICER AT AYER IT'S AN AWFUL LOT OF MONEY AND THERE ARE OCEANS OF FREE MARKETING ADVICE THE PEP BOYS APPROACH HE SAYS IS A FAR MORE EFFECTIVE WAY TO CONDUCT A REVIEW ONCE THE PEP BOYS DECIDED IT WANTED TO BECOME A MAJOR PLAYER IN TELEVISION ADVERTISING ALTHOUGH IT STILL WON'T BE NATIONAL SINCE PEP BOYS OPERATES OVER 350 STORES IN ONLY 21 STATES IT REQUESTED REELS FROM AYER WIEDEN & KENNEDY STEIN ROBAIRE HELM AND GSD&M IN AUSTIN TEXAS AMONG OTHERS WHAT THE PEP BOYS SAW WHEN ITS THREEMEMBER EXECUTIVE COMMITTEE SCREENED THE AYER REEL WAS A SERIES OF TOUCHYFEELY SPOTS FOR CLIENTS SUCH AS AMERICAN TELEPHONE & TELEGRAPH GILLETTE AND FOLGER'S COFFEE AYER DELIVERS A MESSAGE WITH WHOLESOMENESS AND HUMAN CONTACT SAYS MITCHELL LIEBOVITZ CHIEF EXECUTIVE OF PEP BOYS WE AREN'T INTERESTED IN PRODUCING SPOTS THAT WILL WIN ART DIRECTION AWARDS WE'RE INTERESTED IN ADS THAT WILL REACH PEOPLE AT&T'S AD REEKS OF APPLE PIE AND THE FLAG THAT'S THE FLAVOR WE'RE TRYING TO ACHIEVE UH ONE MOMENT PLEASE WE'RE TALKING AUTOMOTIVE PARTS HERE CRANK SHAFTS MUFFLERS TIRES THAT'S FAR DIFFERENT FROM PEOPLE REACHING THEIR LOVED ONES OVER THE TELEPHONE THANKS TO AT&T OR SITTING DOWN WITH A SIGNIFICANT OTHER OVER A CUP OF FOLGER'S JAVA JUST HOW EXACTLY WILL AYER DO ITS MAGIC AND CONVEY THIS GETTINGTOKNOWYOU FEELING IN AN AD CAMPAIGN THAT ONCE SPORTED MANNY MOE & JACK ONCE THEY EVEN APPEARED AS CLAYMATION FIGURES A LA CALIFORNIA RAISINS WELL IT COULD BE AN INTERESTING MONTH SINCE AYER'S MR MAXEY FREELY ADMITS THE AGENCY DOESN'T HAVE A SLOGAN OR EVEN A CAMPAIGN READY MAYBE THERE IS SOMETHING TO THE TRADITIONAL WAY OF PITCHING CLIENTS AFTER ALL IF ONE WAS TO MAKE AN EDUCATED GUESS HOWEVER ONE WOULD ASSUME THAT PEP BOYS WILL JOIN THE ROSTER OF TV ADS THAT USE REAL EMPLOYEES AND NOT ACTORS TO CONVEY A SPIFFY BUSINESS ENVIRONMENT IN FACT MR MAXEY HINTS AT SUCH A STRATEGY AYER MADE ITS REPUTATION ON THE BASIS OF USING REAL PEOPLE MORE OFTEN THAN ACTORS WHERE WE CAN GET THE REAL PEOPLE WE THINK IT'S A BIG STEP FORWARD IT ESTABLISHES CREDIBILITY MUCH AS AGENCIES MIGHT LIKE IT IT IS UNLIKELY THE PEP BOYS ACCOUNT REVIEW SCENARIO WILL SPARK A TREND EVEN AYER WAS DUMBFOUNDED AS THE REVIEW UNFOLDED WHEN IT GOT A CALL FROM PEP BOYS EARLIER THIS MONTH AYER EXECUTIVES SIMPLY THOUGHT THE AGENCY MADE IT PAST THE FIRST ROUND AND IT WOULD NOW HAVE TO PERFORM IN THE TRADITIONAL DOG AND PONY SHOW INSTEAD WHEN AYER VISITED PEP BOYS' OFFICES IT GOT THE NEWS THAT THE REVIEW WAS OVER I HAVE NEVER SEEN AN AGENCY THAT DIDN'T FAIL TO PERFORM AND BE IMPRESSIVE IN A REVIEW SAYS MR LIEBOVITZ YOU OUGHT TO LIVE ON THE WORK THAT YOU'VE DONE FURTHER MR LIEBOVITZ SAYS PEP BOYS DIDN'T WANT AN AGENCY TO CHANGE ITS STYLE TO ACCOMMODATE ITS NEEDS I WANTED TO HIRE AN EXISTING STYLE HE SAYS AND IN OUR CASE I WANTED THE STYLE OF AYER MR LIEBOVITZ WASN'T ALONE IN HIS DECISION WHEN THE THREEMEMBER EXECUTIVE COMMITTEE SCREENED THE TAPES EARLIER THIS MONTH THE CONCLUSION WAS UNANIMOUS SO IT'S THE END OF THE ROAD FOR MANNY MOE & JACK IT'S UNLIKELY THE PUBLIC WILL SEE THE TRIO ANYTIME SOON IN CARTOON FORM I DON'T KNOW WHETHER CARTOONS IS THE FABRIC WE'RE TRYING TO CREATE SAYS MR LIEBOVITZ A PEP BOYS CARTOON WOULD BE ATYPICAL OF THE WORK FROM AYER SUBARU OF AMERICA IS SHIFTING GEARS IN THE MIDST OF ITS ESTIMATED 40 MILLION ADVERTISING PUSH FOR THE IMPREZA STATION WAGON REPLACING MOST OF ITS NATIONAL IMAGE ADVERTISING WITH REGIONAL RETAIL SPOTS THE NEW LOCAL HARDSELL ADS TAKE THE PLACE OF COMMERCIALS THAT INTRODUCED THE IMPREZA STATION WAGON INCLUDING SEVERAL NARRATED BY CHEERS ACTRESS KIRSTIE ALLEY AND ONE TARGETED AT THE SOCALLED GENERATION X WITH THE ACTOR JEREMY DAVIES SUBARU OF AMERICA A UNIT OF FUJI HEAVY INDUSTRIES LTD SPENDS AN ESTIMATED 70 MILLION A YEAR IN ADVERTISING SUBARU'S AD AGENCY IS WIEDEN & KENNEDY WHICH SET UP A PHILADELPHIA OFFICE TO SERVICE THE ACCOUNT AFTER WINNING IT IN A REVIEW TWO YEARS AGO ADVERTISING EXECUTIVES HAVE BEEN WATCHING THE ACCOUNT CLOSELY BECAUSE SUBARU SALES HAVE BEEN DROPPING AT THE SAME TIME THAT WIEDEN & KENNEDY HAS BEEN CREATING COMMERCIALS THAT SEEM TO SCOFF AT STATUSCONSCIOUSNESS AND OTHER CONVENTIONS OF CAR ADVERTISING MARK DUNN SUBARU'S ADVERTISING MANAGER SAID SUBARU DOESN'T PLAN TO PUT THE ACCOUNT INTO REVIEW AND ISN'T LISTENING TO PITCHES FROM OUTSIDE SHOPS HE SAID THAT A RECENT VISIT FROM EXECUTIVES AT THE DENTSU AGENCY REPORTED IN THE MAGAZINE ADWEEK CONCERNED DENTSU'S PROMOTION CAPABILITIES AND NOT THE ADVERTISING ACCOUNT EXECUTIVES AT DENTSU CORPORATION OF AMERICA THE US UNIT OF THE BIG TOKYO AGENCY DENTSU COULDN'T BE REACHED WIEDEN & KENNEDY REFERRED INQUIRIES TO SUBARU LENSCRAFTERS US SHOE'S LENSCRAFTERS THE EYEGLASS RETAIL CHAIN TAPPED NEW YORK AGENCY DEUTSCH/DWORIN FOR ITS ESTIMATED 30 MILLION ACCOUNT ENDING A LONG REVIEW THAT HAD ALSO INCLUDED JORDAN MCGRATH CASE & TAYLOR NEW YORK AND HAL RINEY & PARTNERS SAN FRANCISCO THE ACCOUNT WAS PREVIOUSLY HANDLED IN HOUSE WHO'S NEWS WPP GROUP'S SCALI MCCABE SLOVES NEW YORK HIRED WILLIAM VIESER WHO HEADED UP THE MERCEDESBENZ BUSINESS WHEN IT WAS AT MCCAFFREY & MCCALL TO DO THE SAME THING AT SCALI MERCEDES'S CURRENT AGENCY AS AN EXECUTIVE VICE PRESIDENT AND GROUP ACCOUNT DIRECTOR MR VIESER 56 YEARS OLD SUCCEEDS PHILIPPE DEFECHEREUX 47 WHO LEFT TO PURSUE OTHER OPPORTUNITIES THE AGENCY SAID MR DEFECHEREUX COULDN'T BE REACHED ACCOUNT TYSON CORP AWARDED ITS ESTIMATED 5 MILLION LOUIS KEMP SEAFOOD ACCOUNT TO SAATCHI & SAATCHI ADVERTISING NEW YORK A UNIT OF SAATCHI & SAATCHI CO AND THE AGENCY THAT CREATES ADS FOR ITS HOLLY FARMS AND WEAVER CHICKEN BRANDS THE ACCOUNT WAS AT THE CHICAGO OFFICE OF D'ARCY MASIUS BENTON & BOWLES 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 9305250047 930525 BUSINESS BRIEF NIKON CORP PRETAX LOSS OF 21 MILLION IS REPORTED FOR FISCAL YEAR NIKON CORP THE JAPANESE CAMERA AND PRECISION MACHINERY MAKER POSTED AN UNCONSOLIDATED PRETAX LOSS OF 232 BILLION YEN 21 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 HURT BY THE PLUNGE IN DOMESTIC SALES OF SEMICONDUCTORPRODUCING EQUIPMENT THE PREVIOUS YEAR IT HAD A PROFIT OF 723 BILLION YEN NET INCOME CAME IN ON THE POSITIVE SIDE BUT IT WAS DOWN A STEEP 93 TO 219 MILLION YEN FROM 332 BILLION YEN A YEAR EARLIER SALES WERE DOWN 11 TO 20490 BILLION YEN FROM 23062 BILLION YEN NIKON PREDICTED IT WOULD JUST MANAGE TO EKE OUT A PROFIT AT THE PRETAX AND NET LEVELS DURING THE CURRENT FISCAL YEAR ENDING MARCH 1994 CITING THE CONTINUED WEAKNESS OF JAPANESE PERSONAL CONSUMPTION AND CORPORATE CAPITAL SPENDING AS WELL AS THE APPRECIATION OF THE YEN THE COMPANY SAID SALES WILL SHOW ONLY A TEPID REBOUND 9305250046 930525 FOREIGN EXCHANGE DOLLAR ENDS MOSTLY HIGHER ON REPORT FED IS READY TO LIFT SHORTTERM RATES BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED MOSTLY HIGHER MONDAY ON A REPORT IN THE WALL STREET JOURNAL THAT THE FEDERAL RESERVE BOARD IS PREPARED TO RAISE SHORTTERM INTEREST RATES THE DOLLAR'S RISE WAS MORE PRONOUNCED AGAINST THE MARK AND OTHER CURRENCIES IN EUROPE WHERE INTEREST RATES ARE PERCEIVED TO BE DECLINING THAN AGAINT THE YEN TRADERS SAID JAPANESE INTEREST RATES ARE SEEN HOLDING STEADY THEY ADDED LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16374 MARKS AND 11065 YEN UP FROM 16253 MARKS AND 11030 YEN LATE FRIDAY IN NEW YORK STERLING WAS TRADING AT 15355 DOWN FROM 15430 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11053 YEN AND AT 16335 MARKS THE JOURNAL CITING PEOPLE FAMILIAR WITH THE FEDERAL RESERVE'S DELIBERATIONS REPORTED THAT FED OFFICIALS VOTED TO LEAN TOWARD HIGHER SHORTTERM INTEREST RATES AT THEIR CLOSEDDOOR MEETING LAST WEEK THE SHIFT DOESN'T MEAN AN INCREASE IN INTEREST RATES IS IMMINENT BUT THE BIAS TOWARD HIGHER RATES GIVES ALAN GREENSPAN THE FED'S CHAIRMAN THE LEEWAY TO INCREASE THE FEDERALFUNDS RATE AS MUCH AS ONEHALF PERCENTAGE POINT WITHOUT SEEKING A VOTE OF THE FED'S 12MEMBER POLICY COMMITTEE SHOULD ECONOMIC CONDITIONS WARRANT THE FED HAS BEEN HOLDING THE KEY FEDERALFUNDS INTEREST RATE THE RATE AT WHICH BANKS MAKE OVERNIGHT LOANS TO EACH OTHER AT 3 SINCE EARLY SEPTEMBER THE DOLLAR SURGED ALMOST TWO PFENNIGS IN THE FIRST HOURS OF EUROPEAN TRADING MONDAY AS THE MARKET REACTED TO THE ARTICLE DEALERS SAID IT WAS KIND OF A PANIC A KNEEJERK REACTION SAID LOUIS RAPPAPORT FOREIGNEXCHANGE MANAGER AT SOCIETE GENERALE HIGHER US INTEREST RATES WOULD MAKE THE DOLLAR MORE ATTRACTIVE TO INVESTORS TRADERS SAID THE IMPACT WAS ENHANCED BY MORE SIGNS THAT RATES ARE TRENDING LOWER ACROSS EUROPE MR RAPPAPORT SAID CUTS IN TWO KEY FRENCH INTEREST RATE MONDAY HELPED UNDERSCORE THIS POINT SAID RICH SHIMOKAWA FOREIGNEXCHANGE MANAGER AT SUMITOMO BANK LTD BUT AFTER THE DOLLAR'S EARLY LEAP FURTHER CONSIDERATION OF THE JOURNAL ARTICLE AND THE URGE TO TAKE PROFITS BROUGHT THE US CURRENCY GRADUALLY LOWER THROUGH THE REMAINDER OF THE GLOBAL TRADING DAY PLAYERS SAID PARTICIPANTS BEGAN TO SENSE THAT US INTERESTRATE INCREASES IF THEY DO OCCUR AREN'T PROBABLE IN THE IMMEDIATE FUTURE MR RAPPAPORT SAID THE FED IS CONCERNED ABOUT INFLATION BUT THEY'RE NOT GOING TO OVERREACT HE SAID FED OFFICIALS ALMOST CERTAINLY WON'T CHANGE RATES UNTIL MAY PRODUCER AND CONSUMER INFLATION DATA ARE RELEASED IN MIDJUNE HE SAID COMMENTS BY AN IMPORTANT OFFICIAL OF THE BUNDESBANK THAT GERMAN INTEREST RATES ARE LIKELY TO HOLD AT CURRENT LEVELS IN THE NEAR TERM FAILED TO HAVE MUCH IMPACT ON THE MARKET PLAYERS SAID LOTHAR MUELLER A MEMBER OF THE BUNDESBANK'S POLICYSETTING CENTRAL BANK COUNCIL SAID IN A RADIO INTERVIEW DURING THE WEEKEND THAT GERMANY'S CENTRAL BANK WILL TAKE A BREATHER BEFORE REDUCING INTEREST RATES FURTHER HE ADDED THAT IT WOULD BE PREMATURE TO DISCUSS THE LENGTH OF THE PAUSE MR MUELLER'S COMMENTS WERE BROADLY IN LINE BOTH WITH MARKET EXPECTATIONS AND RECENT COMMENTS BY OTHER BUNDESBANK OFFICIALS AND THIS EXPLAINED THEIR LIMITED INFLUENCE SAID JOHN BEERLING THE CHIEF DEALER AT NORWEST BANK CORP IN MINNEAPOLIS AGAINST THE YEN THE DOLLAR RECEIVED SOME CARRYOVER MOMENTUM FROM THE GAINS NOTCHED UP AGAINST THE MARK ON THE FEDERAL RESERVE ARTICLE BUT NOT MUCH SAID SUMITOMO BANK'S MR SHIMOKAWA UNLIKE RATES IN EUROPE JAPANESE INTEREST RATES AREN'T LIKELY TO FALL IN THE NEAR TERM SO THE EXTRA APPEAL THE DOLLAR WOULD PICK UP FROM HIGHER US RATES WOULD BE LESS DRAMATIC AGAINST THE YEN THAN EUROPEAN CURRENCIES HE SAID ALSO THE VALUE OF THE YEN IS MORE AFFECTED BY CONCERNS ABOUT JAPAN'S SPRAWLING SURPLUSES WITH ITS MAJOR TRADING PARTNERS THAN COMPARATIVE INTERESTRATE LEVELS DEALERS SAID THOSE CONCERNS WERE REVIVED LAST WEEK WHEN THE US REPORTED AN UNEXPECTEDLY WIDE 1021BILLION MARCH TRADE DEFICIT MORE THAN HALF OF WHICH WAS WITH JAPAN 9305250044 930525 BUSINESS BRIEF CUMMINS ENGINE CO COMPANY TO FORM VENTURE WITH US UNIT OF BEHR CUMMINS ENGINE CO COLUMBUS IND SAID IT PLANS TO COMBINE ITS HEATTRANSFER OPERATIONS WITH THE US OPERATIONS OF GERMANY'S BEHR GMBH TO FORM A JOINT VENTURE BEHR IN STUTTGART WILL HOLD A MAJORITY STAKE IN THE VENTURE TO BE KNOWN AS BEHR AMERICA HOLDINGS TERMS WEREN'T DISCLOSED CUMMINS A MAKER OF DIESEL ENGINES WILL CONTRIBUTE TO THE VENTURE ITS MCCORD HEAT TRANSFER UNIT WHICH HAS 380 EMPLOYEES AND MAKES COOLING SYSTEMS AND PARTS FOR MAKERS OF TRUCKS AND OTHER HEAVY VEHICLES BEHR A MAKER OF ENGINECOOLING PARTS WILL CONTRIBUTE ITS 165EMPLOYEE BEHR OF AMERICA UNIT WHICH MANUFACTURES AIRCONDITIONING COMPONENTS FOR THE TRUCK AND AUTOMOTIVE MARKETS CUMMINS SOLD BEHR AN UNDISCLOSED STAKE IN MCCORD IN 1990 AND PART OF WHAT IT RECEIVED IN RETURN WAS LICENSING OF CERTAIN BEHR TECHNOLOGY AND TECHNICAL ASSISTANCE IN DEVELOPING CUMMINS PRODUCTS USING THE BEHR DESIGN 9305250043 930525 HEARD ON THE STREET RIVERWOOD'S FANS SAY INVESTORS SHOULD LOOK BEYOND THE TREES TO SEE PAPER FIRM'S POTENTIAL BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN WALL STREET'S EYES THINGS AREN'T GOING RIGHT FOR RIVERWOOD INTERNATIONAL AN 805OWNED UNIT OF MANVILLE CORP BUT WALL STREET IS OFTEN NEARSIGHTED IF NOT TOTALLY BLINDED BY THE QUEST FOR SHORTTERM GAINS BASED IN ATLANTA RIVERWOOD IS A PAPERBOARD AND PACKAGING PRODUCTS COMPANY WHOSE CUSTOMERS INCLUDE SUCH POWERHOUSES AS ANHEUSERBUSCH COCACOLA PEPSICO AND CADBURYSCHWEPPES THIS IS NO HIDEBOUND COMMODITY BUSINESS SO IT SHOULD BE TRADING AT A HIGHER MULTIPLE THAN A PAPER COMPANY THE STOCK'S FANS ARGUE THEY SAY THAT BECAUSE RIVERWOOD MAKES ELABORATELY PRINTED PAPER PACKAGES FOR PRODUCTS FROM DR PEPPER SOFT DRINKS TO BUDWEISER BEER ITS STOCK IS A BARGAINPRICED WAY TO PLAY AN ACCELERATING TREND COMPANIES ARE PUTTING MORE EFFORT INTO PROMOTING THEIR PRODUCTS THROUGH PACKAGING FOR EXAMPLE BEER NOW COMES IN FOURPACKS SIXPACKS 12PACKS AND 36PACKS IN ALL KINDS OF SHAPES WITH FLASHY COLORS ON THE PACKAGE RIVERWOOD WENT PUBLIC WITH AN 11 MILLIONSHARE OFFERING IN JUNE AT 14 1/4 YESTERDAY THE STOCK FELL 1/8 TO 13 7/8 OR 3 BELOW ITS OFFERING PRICE SALOMON BROTHERS RECENTLY DOWNGRADED THE STOCK TO A HOLD CITING WEAK PRICES FOR LINERBOARD A COMPONENT OF CORRUGATED PACKAGING AN ACQUISITION AND UPGRADING OF A MACON GA PAPER MILL IS HITTING RIVERWOOD WITH HIGHER EXPENSES SALOMON ANALYST CA CHIP DILLON III THINKS RIVERWOOD WILL BURN UP MORE FREE CASH THAN EXPECTED ON THE PROJECT AS WEAK LINERBOARD PRICES HURT REVENUE THE VALUE OF THE COMPANY TO THE EQUITY HOLDER WILL DECLINE HE PREDICTS SOME PROSPECTIVE INVESTORS BLANCH AT THE THOUGHT THAT FOURFIFTHS OF RIVERWOOD'S STOCK IS OWNED BY MANVILLE THE COMPANY THAT FILED FOR BANKRUPTCYCOURT PROTECTION AMID A WAVE OF ASBESTOS LITIGATION IN 1982 BUT RIVERWOOD WAS NEVER IN THE ASBESTOS BUSINESS AND IS IMMUNE FROM LITIGATION RELATED TO MANVILLE'S PROBLEMS MANVILLE SAYS ALSO BECAUSE OF A BOND COVENANT RIVERWOOD ISN'T ALLOWED TO PAY OUT MORE THAN 50 OF PROFITS IN DIVIDENDS ANOTHER MEASURE THAT PROTECTS SHAREHOLDERS AGAINST ANY CASH TRANSFERS TO MANVILLE EVEN THOUGH LINERBOARD PRICING IS FLABBY A CLOSE LOOK SHOWS THAT MOST OF RIVERWOOD'S REVENUE ISN'T FROM THE PRICESENSITIVE LINERBOARD OR LUMBER AND PLYWOOD BUSINESSES ABOUT 69 OF REVENUE AND 76 OF PROFIT LAST YEAR CAME FROM SALES OF SPECIALIZED PAPERBOARD AND LEASES OF PACKAGING MACHINERY TO BEVERAGE AND CONSUMER GOODS COMPANIES RIVERWOOD'S PACKAGING SYSTEMS BUSINESS IN THE VIEW OF SOME SHAREHOLDERS MAKES THE ISSUE MORE OF A GROWTH STOCK THAN A PLAY ON PAPER PRICING PACKAGING MACHINERY IS THE LOCOMOTIVE THAT PULLS OUR TRAIN THOMAS JOHNSON CHIEF EXECUTIVE OFFICER TOLD INVESTORS AND ANALYSTS EARLIER THIS MONTH THE COMPANY DESIGNS THE PACKAGING MACHINERY THEN RUNS ITS OWN PAPER STOCK THROUGH IT SOME OF WHICH IS DERIVED FROM ITS OWN TREES THE ONLY OTHER FULLY INTEGRATED PAPER COMPANY LIKE THIS IS AN ARM OF MEAD CORP IT IS A DUOPOLY WITH SIGNIFICANT PRICE CONTROL AND WITH A HIGH INTELLECTUAL VALUEADDED COMPONENT SAYS CHARLES RONSON PUBLISHER OF THE IPO VALUE MONITOR NEWSLETTER WHAT WILL DRIVE GROWTH PACKAGING HAS BECOME PROMOTION MR RONSON SAYS WITH US BEER PRICES UNDER PRESSURE BREWERS ARE TRYING TO SELL IN VOLUME MOREOVER EUROPEANS ONLY NOW ARE STARTING TO PURCHASE BEVERAGES IN PACKAGES RIVERWOOD OPERATES IN 12 COUNTRIES LONGER TERM EVEN SALOMON'S MR DILLON IS BULLISH ON RIVERWOOD'S GROWTH STORY HIS PERSHARE PROFIT ESTIMATES CLIMB SHARPLY FROM 40 CENTS IN 1993 TO 95 CENTS IN 1994 AND 145 IN 1995 THE MACON MILL IS UNDERGOING A 250 MILLION PARTIAL CONVERSION TO PRODUCTION OF PACKAGING PAPER ALSO CALLED COATED BOARD MARGINS ON THIS PRODUCT ARE MUCH HIGHER THAN ON LINERBOARD AND ANALYSTS EXPECT DEMAND TO BE STRONG DURING THE NEXT TWO YEARS MEANWHILE RIVERWOOD'S MR JOHNSON HAS SAID THE COMPANY'S SECONDQUARTER EARNINGS WHICH WILL BE REPORTED JULY 20 WILL BE LOWER THAN A YEAR EARLIER MR DILLON OF SALOMON BROTHERS SAYS IF YOU DON'T OWN THE STOCK THERE IS NO RUSH TO BUY IT NEARTERM CASH NEEDS COULD BE SUPPLEMENTED BY A SALE OF NONSTRATEGIC TIMBER LANDS BUT MR DILLON POINTS OUT SUCH A SALE WOULD ALSO REDUCE THE VALUE OF THE COMPANY TO AN EQUITY HOLDER RIVERWOOD'S STOCK MAY SIT QUIET FOR A QUARTER OR TWO LEAVING INVESTORS WITH NOTHING MORE THAN THE 11 DIVIDEND YIELD MR DILLON THINKS INVESTORS HAVE PLENTY OF TIME TO GET IN BEFORE THE COMPANY BEGINS TO RECOVER BUT TRUE GROWTH STOCKS RARELY WAIT FOR INVESTORS ONCE THE EARNINGS MOMENTUM CROWD GETS THE SLIGHTEST SENSE THAT RIVERWOOD'S EARNINGS RECOVERY IS REAL THE STOCK COULD LEAP MR RONSON THINKS RIVERWOOD'S STOCK IS ABOUT AS LOW AS IT'S GOING TO GO AND MOST OF THE BAD NEWS ABOUT LINERBOARD PRICING IS OUT THAT'S THE BEST TIME TO BUY HE SAYS THERE ISN'T MUCH DOWNSIDE HERE YEAR ENDED DEC 31 1992 FIRST QUARTER MARCH 27 1993