DUPONT CO WHICH IS TRYING TO WRING GREATER EFFICIENCIES FROM ITS CUMBERSOME CORPORATE STRUCTURE SAID IT IS CONSOLIDATING ITS SIX NYLON PRODUCTS BUSINESSES INTO A SINGLE UNIT CALLED DUPONT NYLON WITH 37 BILLION IN SALES JERRY BLUMBERG DUPONT SENIOR VICE PRESIDENT IN CHARGE OF THE NEW UNIT SAID ANOTHER REASON TO COMBINE THE BUSINESSES IS TO PREPARE FOR THE INTEGRATION OF THE NYLON BUSINESS DUPONT INTENDS TO BUY FROM BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC PENDING FEDERAL TRADE COMMISSION APPROVAL THE CREATION OF A SINGLE NYLON GROUP IS PART OF A RESTRUCTURING ANNOUNCED THIS MONTH OF DUPONT'S ENTIRE CHEMICAL AND SPECIALTY PRODUCTS DIVISION THE WILMINGTON DEL COMPANY'S CONOCO OIL DIVISION WASN'T AFFECTED AS PART OF THE CHEMICAL AND SPECIALTY RESTRUCTURING DUPONT SAID IT WAS ELIMINATING BETWEEN 200 AND 300 JOBS A DUPONT SPOKESMAN SAID THAT NO ADDITIONAL JOBS WERE CUT WITH THE CREATION OF THE NYLON UNIT 9305250041 930525 BUSINESS BRIEF GENERAL SIGNAL CORP PROPOSED INITIAL PUBLIC OFFER OF UNIT TO BE RESCHEDULED GENERAL SIGNAL CORP STAMFORD CONN SAID IT WILL RESCHEDULE ITS PROPOSED INITIAL PUBLIC OFFERING OF SHARES IN ITS ELECTROGLAS INC SUBSIDIARY GENERAL SIGNAL SAID THE DELAY WILL PERMIT A REVIEW OF THE OFFERING IN VIEW OF INDICATORS OF CONTINUED IMPROVED OPERATING PERFORMANCE AT ELECTROGLAS AND IMPROVED MARKET CONDITIONS IN THE SEMICONDUCTOR EQUIPMENT SECTOR IN ITS PROSPECTUS FOR THE OFFERING ELECTROGLAS SAID 1992 EARNINGS FELL 36 AND SALES 8 AND SOUNDED A CAUTIOUS NOTE IN VIEW OF A DOWNTURN IN THE SEMICONDUCTOR INDUSTRY THE COMPANY SAID IT IS THE LARGEST SUPPLIER OF SPECIALIZED SEMICONDUCTOR TESTING EQUIPMENT OUTSIDE JAPAN A GENERAL SIGNAL OFFICIAL SAID UNDERWRITERS AND ANALYSTS ARE PREPARING AN UPDATE IN VIEW OF A RECENT INDUSTRY UPTICK AND IMPROVED MARKET VALUATIONS OF THE INDUSTRY ELECTROGLAS FILED TO SELL 62 MILLION COMMON SHARES AT AN ESTIMATED 13 TO 15 A SHARE GENERAL SIGNAL WOULD RETAIN AN 88 INTEREST AND AT A PRICE OF 14 A SHARE RECEIVE ABOUT 868 MILLION FROM THE OFFER 9305250040 930525 BUSINESS BRIEF NATIONAL WESTMINSTER BANK PLC NATWEST SUBSIDIARY TO BUY EAST RIVER SAVINGS FRANCHISE NATIONAL WESTMINSTER BANCORP SAID IT AGREED IN PRINCIPLE TO ACQUIRE THE WESTCHESTER COUNTY NY FRANCHISE OF EAST RIVER SAVINGS BANK NEW ROCHELLE NY NATWEST SAID IT WILL ACQUIRE ABOUT 315 MILLION IN DEPOSITS AND FOUR BRANCHES IN SCARSDALE LARCHMONT PELHAM MANOR AND NEW ROCHELLE BASED IN NEW YORK NATWEST IS A WHOLLY OWNED SUBSIDIARY OF NATIONAL WESTMINSTER BANK PLC LONDON AN INTERNATIONAL BANKING AND FINANCIAL SERVICES ORGANIZATION NATWEST WITH MORE THAN 260 BRANCH OFFICES IN NEW YORK AND NEW JERSEY HAS 22 BILLION IN ASSETS IT ALREADY OPERATES 19 BRANCHES IN WESTCHESTER COUNTY IT WILL ASSUME 30000 ACCOUNTS SERVED BY EAST RIVER IN THE COUNTY IT WILL ALSO ACQUIRE A PORTFOLIO OF RESIDENTIAL MORTGAGES AND COMMERCIAL LOANS THE SALE WILL LEAVE EAST RIVER SAVINGS WITH 165 BILLION IN ASSETS 9305250039 930525 CREDIT RATINGS ENGELHARD CORP MOODY'S INVESTORS SERVICE INC RAISED ITS RATING ON COMMERCIAL PAPER TO PRIME1 FROM PRIME2 AND THE RATING ON LONGTERM SENIOR NOTES RATING TO SINGLEA2 FROM SINGLEA3 MOODY'S CITED THE STRONG CASHGENERATING CAPACITY OF THE COMPANY'S OPERATIONS AND FINANCIAL TRACK RECORD ENGELHARD ISELIN NJ PRODUCES SPECIALTY CHEMICAL PRODUCTS AND ENGINEERED MATERIALS AND PROVIDES PRECIOUS METALS MANAGEMENT SERVICES IMO INDUSTRIES INC LAWRENCEVILLE NJ STANDARD & POOR'S CORP LOWERED THE RATING ON IMO INDUSTRIES' SENIOR SUBORDINATED DEBT TO SINGLEBMINUS FROM SINGLEBPLUS CITING TIGHT RESTRICTIONS IN ITS RENEGOTIATED BANK DEBT ABOUT 300 MILLION OF DEBT IS AFFECTED S&P SAID IMO LAST WEEK REACHED AGREEMENTS WITH ITS LENDERS TO RESTRUCTURE ITS SENIOR CREDIT LINE WHICH INCLUDED IMMEDIATE ISSUANCE OF 108 MILLION IN LETTERS OF CREDIT TO SUPPORT NEW COMMERCIAL CONTRACTS THE RESTRUCTURED CREDIT LINE INCLUDES A 65 MILLION REVOLVING CREDIT FOR WORKING CAPITAL AND LETTERS OF CREDIT TO SUPPORT FUTURE COMMERCIAL CONTRACT WORK S&P SAID IMO WHICH MAKES ANALYTICAL AND OPTICAL INSTRUMENTS ELECTRICAL AND MECHANICAL CONTROLS AND ENGINEERED POWER COMPONENTS FOR COMMERCIAL AND MILITARY APPLICATIONS IS EXPECTED TO BE MODESTLY PROFITABLE THIS YEAR BUT SOFT SALES AND A HIGH DEBTTOCAPITAL RATIO ARE EXPECTED TO RESULT IN ONLY MEDIOCRE CASH FLOW AND LIMITED FINANCIAL FLEXIBILITY IMO OFFICIALS COULDN'T IMMEDIATELY BE REACHED FOR COMMENT ON S&P'S ACTION JERSEY SHORE MEDICAL CENTER NEPTUNE NJ MOODY'S INVESTORS SERVICE INC COMPLETING A REVIEW OF HOSPITAL REVENUE BOND RATINGS IN NEW JERSEY SAID IT ISSUED ONE UPGRADE FOR JERSEY SHORE MEDICAL CENTER TO BAA1 FROM BAA DUE TO AN IMPROVED LIQUIDITY POSITION AND FINANCIAL PERFORMANCE THE RATING SERVICE ALSO ISSUED FIVE DOWNGRADES AND 18 CONFIRMATIONS MOODY'S NOTED THAT THE RATING DISTRIBUTION FOR NEW JERSEY HOSPITALS IS SKEWED TOWARD LOWER BOND RATINGS BECAUSE HOSPITALS HAVE OPERATED UNDER A HIGHLY REGULATED REIMBURSEMENT SYSTEM A NEW REIMBURSEMENT SYSTEM STARTING JAN 1 WILL REQUIRE HOSPITALS TO ADJUST TO PREDETERMINED AND DECREASING SUBSIDIES TO COVER POTENTIAL SHORTFALLS DOWNGRADES INCLUDED COLUMBUS HOSPITAL NEWARK TO BA1 FROM BAA ELIZABETH GENERAL HOSPITAL ELIZABETH TO BAA1 FROM SINGLEA PALISADES GENERAL HOSPITAL NORTH BERGEN TO BA FROM BAA1 PRINCETON MEDICAL CENTER PRINCETON TO SINGLEA FROM SINGLEA1 AND ZURBRUGG MEMORIAL HOSPITAL WILLINGBORO TO BAA FROM BAA1 WENDY'S INTERNATIONAL INC DUBLIN OHIO SAW ITS RATINGS ON ITS SENIOR NOTES RAISED BY MOODY'S INVESTORS SERVICE INC TO BAA1 FROM BAA2 AND THE RATINGS OF THE COMPANY'S SUBORDINATED DEBENTURES TO BAA3 FROM BA1 MOODY'S SAID THE TOTAL DEBT AFFECTED IS ABOUT 188 MILLION THE RATINGS SERVICE SAID THE UPGRADE ACKNOWLEDGES THE PROGRESS THE FASTFOOD RESTAURANT CHAIN HAS MADE IN STRENGTHENING ITS NETWORK OF RESTAURANTS ENHANCING ITS PUBLIC IMAGE AND IMPROVING FINANCIAL FLEXIBILITY MOODY'S ALSO SAID THE UPGRADE REFLECTS ITS EXPECTATION WENDY'S INTERNATIONAL WILL CONTINUE TO EXPAND THE NUMBER OF RESTAURANTS IT OWNS OR FRANCHISES IN A CONTROLLED AND PRUDENT MANNER 9305250038 930525 BUSINESS BRIEF IMC FERTILIZER GROUP INC FIRM RECEIVES DEBT WAIVERS FROM BANK GROUP LENDER IMC FERTILIZER GROUP INC SAID IT RECEIVED WAIVERS FROM A GROUP OF BANKS THAT ALLOW IT TO AVOID DEFAULTING ON LOAN AGREEMENTS DUE TO ITS FAILURE TO DISCLOSE THE LATEST LAWSUIT STEMMING FROM A 1991 PLANT EXPLOSION IN LOUISIANA LAST WEEK THE FERTILIZER MAKER IN NORTHBROOK ILL SAID IT REACHED A SIMILAR AGREEMENT IN PRINCIPLE WITH A MAJOR LENDER THE PRUDENTIAL INSURANCE CO OF AMERICA A TOTAL OF ABOUT 335 MILLION IN SHORTTERM DEBT IS COVERED BY THE WAIVERS FROM THE BANKS WHICH IMC DECLINED TO INDENTIFY AND PRUDENTIAL AN IMC SPOKESMAN SAID AN EXPLOSION IN 1991 AT A NITROPARAFFIN PLANT IN STERLINGTON LA THAT IMC WAS MANAGING FOR THE ANGUS CHEMICAL CO UNIT OF ALBERTA NATURAL GAS CO KILLED EIGHT WORKERS AND INJURED 120 OTHERS IN APRIL IMC SETTLED FOR 180 MILLION A SUIT THAT ANGUS AND ITS INSURER FILED IN TEXAS LAST WEEK IMC DISCLOSED THAT IT WAS SUED ON APRIL 22 IN LOUISIANA BY ANGUS FOR OTHER ALLEGED DAMAGES 9305250037 930525 BUSINESS BRIEF WELDOTRON CORP DIRECTORS REJECT SFM OFFER TO BUY INTEREST IN COMPANY WELDOTRON CORP SAID ITS BOARD REJECTED LAST WEEK'S UNSOLICITED OFFER FROM SFM CORP A NEW YORK ELECTRICMOTOR MAKER TO BUY 500000 TO 750000 OF ITS SHARES FOR 225 EACH WELDOTRON TREASURER VARGHESE REJU SAID DIRECTORS OF THE PISCATAWAY NJ COMPANY REJECTED THE OFFER BECAUSE ITS CHAIRMAN MARTIN SIEGEL RECENTLY INVESTED SOME OF HIS OWN FUNDS IN THE MAKER OF FOOD AND INDUSTRIALPACKAGING MACHINES MR SIEGEL SAID MAY 13 HE BOUGHT 270000 AUTHORIZED BUT UNISSUED SHARES FROM WELDOTRON AT 225 EACH BOOSTING HIS STAKE TO 254 AND INVESTING 607500 IN WORKING CAPITAL IN THE COMPANY ON MAY 17 SFM OFFERED TO INVEST FROM 11 MILLION TO 17 MILLION IN WELDOTRON SUBJECT TO THE APPROVAL OF WELDOTRON'S SHAREHOLDERS AND THE ELECTION OF A NEW BOARD OF FIVE DIRECTORS THREE OF WHOM WOULD BE NOMINATED BY SFM WELDOTRON HAS 1830000 SHARES OUTSTANDING MR REJU SAID THE STOCK CLOSED YESTERDAY AT 2 DOWN 25 CENTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING 9305250036 930525 YOUR MONEY MATTERS MOREEQUAL BENEFITS GO TO SOME TOP EXECUTIVES BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL TOP EXECUTIVES NOT ONLY TRAVEL FIRST CLASS WHEN THEY FLY THEY GO FIRST CLASS IN THEIR BENEFITS PLANS AS WELL WHILE RETIREMENT AND MEDICAL COVERAGE HAVE SHRUNK SIGNIFICANTLY FOR MOST US WORKERS DURING THE PAST DECADE SUCH EMPLOYERPROVIDED BENEFITS HAVE FATTENED SUBSTANTIALLY FOR TOPPAID EMPLOYEES AT AMERICA'S LARGEST COMPANIES TOPPAID EXECUTIVES TYPICALLY RECEIVE SEVERAL TYPES OF PENSION AND RETIREMENT PLANS AND AT MANY COMPANIES HAVE DELUXE MEDICAL PLANS THAT COVER 100 OF ALL COSTS WITH NO DEDUCTIBLES AS WELL AS ADDITIONAL DISABILITY AND LIFE INSURANCE COVERAGE BENEFITS AND COMPENSATION SPECIALISTS SAY THESE SEPARATEBUTUNEQUAL BENEFITS ARRANGEMENTS WHICH ARE COMPLETELY LEGAL ENABLE COMPANIES TO ATTRACT AND RETAIN TOP TALENT BUT CRITICS SAY TAXPAYERS FOOT THE BILL BECAUSE MEDICAL PREMIUMS ARE DEDUCTIBLE THE MEDICAL COVERAGE A CEO GETS IS PAID BY YOU ME AND THE 36 MILLION AMERICANS WHO DON'T HAVE HEALTH BENEFITS SAYS KAREN FERGUSON DIRECTOR OF THE PENSION RIGHTS CENTER A WASHINGTONBASED ADVOCACY GROUP CRITICS SAY SHAREHOLDERS PAY THE PRICE TOO BUT MAY NOT KNOW IT COMPANIES CAN PAY TOP EXECUTIVES ADDITIONAL MONEY IN THE FORM OF RETIREMENT BENEFITS WHICH DON'T FALL UNDER THE SAME DISCLOSURE REQUIREMENTS AS COMPENSATION WHAT CAN TOP EXECUTIVES EXPECT SUPPLEMENTAL MEDICAL PLANS FOR TOP EXECUTIVES AND THEIR FAMILIES WAIVE DEDUCTIBLES AND COPAYMENTS AND OFFER PREVENTIVE AND DIAGNOSTIC TREATMENT AND FREE PHYSICALS COMPANIES CAN PROVIDE EXECUTIVES WITH WHATEVER HEALTH CARE THEY WANT SAYS LANCE TANE A PARTNER AT KWASHA LIPTON A BENEFITS CONSULTING FIRM IN FORT LEE NJ JUST ABOUT THE ONLY THING SUCH PLANS CAN'T COVER HE POINTS OUT IS COSMETIC SURGERY SO UGLY EXECUTIVES WILL HAVE TO STAY UGLY OR PAY FOR IT THEMSELVES COMPANIES THAT PROVIDE EXTRA MEDICAL COVERAGE FOR TOP EXECUTIVES TEND TO KEEP THE INFORMATION DISCREET BUT PARTNERS AT THE MAJOR BENEFITS AND COMPENSATION CONSULTING FIRMS ACKNOWLEDGE THAT THE PRACTICE IS COMMON I HOPE YOU DON'T WRITE ABOUT THIS SAYS THE DIRECTOR OF ONE BENEFITS AND COMPENSATION FIRM IT WILL JUST INVITE REGULATORS TO INTERVENE MOST TOP EXECUTIVES RECEIVE EXTRA LIFE INSURANCE AND LONGTERM DISABILITY COVERAGE BUT THE PLUSHEST COVERAGE TOP EXECUTIVES RECEIVE IS IN THEIR RETIREMENT PLANS A TOP EXECUTIVE WILL OF COURSE RECEIVE A REGULAR PENSION AND A DEFINED CONTRIBUTION PLAN SUCH AS A 401K OR PROFITSHARING PLAN IF THE COMPANY OFFERS THESE BECAUSE THE AMOUNTS AN EXECUTIVE CAN RECEIVE FROM THOSE TYPES OF PLANS ARE LIMITED BY GOVERNMENT REGULATIONS THAT PREVENT PLANS FROM DISCRIMINATING IN FAVOR OF THE HIGHLY PAID EMPLOYERS ALSO OFFER TOP EXECUTIVES A HANDFUL OF OTHER PLANS THESE INCLUDE EXCESS PLANS WHICH CALCULATE WHAT THE EXECUTIVE WOULD HAVE BEEN ABLE TO OBTAIN USING PENSION AND RETIREMENT SAVINGS PLANS FORMULAS IF NO GOVERNMENT LIMITS WERE IMPOSED THESE ARE ALSO CALLED TOPHAT PLANS SINCE THEY ARE PAID ONLY TO ELITE EARNERS EXECUTIVES ALSO RECEIVE ONE OR MORE SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS SERPS WHICH PAY A BENEFIT BASED ON UNLIMITED EARNINGS THESE SUPPLEMENTAL PLANS DON'T HAVE THE SPECIAL TAX ADVANTAGES OF QUALIFIED PENSION PLANS WHICH ALLOW CONTRIBUTIONS TO GROW TAX DEFERRED CONSEQUENTLY THEY DON'T HAVE TO CONFORM TO NONDISCRIMINATION RULES THAT REQUIRE THAT PLANS AWARD BENEFITS TO ALL WORKERS IN MUCH THE SAME WAY THEY CAN BE AS DISCRIMINATORY AS THEY WANT SAYS DEENE GOODLAW PROFESSOR OF LAW AT GOLDEN GATE UNIVERSITY SCHOOL OF LAW IN SAN FRANCISCO COMMONLY BENEFITS SPECIALISTS SAY EXECUTIVES RECEIVE A COMBINATION OF SUPPLEMENTAL PLANS BUT IT IS NEARLY IMPOSSIBLE FOR ANYONE INCLUDING BENEFITS SPECIALISTS TO FIGURE OUT HOW MUCH A COMPANY PAYS ITS TOP EXECUTIVES THIS WAY WHILE SECURITIES AND EXCHANGE COMMISSION REGULATIONS REQUIRE COMPANIES TO DISCLOSE COMPENSATION A LOT OF RETIREMENT PAYMENTS FALL THROUGH THE CRACKS THAT IS BECAUSE UNLIKE PENSION PLANS TOPHAT PLANS AND SERPS ARE USUALLY NOT FUNDED RATHER THEY EXIST AS PROMISES TO PAY FROM THE COMPANY'S RESERVES OR GENERAL ASSETS THUS ALL THAT MAY TURN UP IN A PROXY FOOTNOTE IS AN IMPUTED INTEREST RATE THAT IS ACCUMULATING ON THE PROMISED MONEY UNTIL IT IS PAID OUT TO THE EXECUTIVES PRESUMABLY AT RETIREMENT ANALYZING CLUES LIKE THAT IS SOMETHING JAMES CLARY SPECIALIZES IN HE IS A PARTNER AT THE TODD ORGANIZATION A CHICAGO FIRM SPECIALIZING IN THE DESIGN AND IMPLEMENTATION OF NONQUALIFIED BENEFITS FOR EXECUTIVES COMPENSATION COMMITTEES WANT TO MAKE SURE THEIR BENEFITS ARE IN LINE WITH WHAT OTHER COMPANIES ARE OFFERING HE SAYS APART FROM BEING DIFFICULT TO MEASURE EXECUTIVE RETIREMENT BENEFITS ARE IN MANY WAYS INDISTINGUISHABLE FROM DEFERRED COMPENSATION DEFERRED COMPENSATION IS A MISNOMER BECAUSE IT CAN MEAN MANY THINGS SAYS MR CLARY FOR EXAMPLE IT IS COMMON FOR EXECUTIVES TO ELECT NOT TO RECEIVE THEIR BONUS BUT TO INSTEAD HAVE IT ADDED TO THEIR SERP PLAN THE ADVANTAGES OF CALLING DEFERRED COMPENSATION A RETIREMENT BENEFIT IS THAT IT ESCAPES MOST DISCLOSURE REQUIREMENTS AND IS LESS OF A RED FLAG FOR SHAREHOLDER GROUPS THIS ISN'T AN AWARD THAT BUD CRYSTAL CAN SNIPE AT THIS IS A RETIREMENT BENEFIT SAYS MR CLARY HE'S REFERRING TO GRAEF CRYSTAL A LEADING SPECIALIST ON AND CRITIC OF EXECUTIVE COMPENSATION STRUCTURES PRESIDENT CLINTON'S PROPOSED TAX CHANGES WOULD REDUCE THE MAXIMUM RECOGNIZABLE COMPENSATION IN QUALIFIED RETIREMENT PLANS TO 150000 FROM 235840 IN 1993 THIS WILL DRIVE COMPANIES TO SHIFT MORE RETIREMENT BENEFITS FOR TOP EXECUTIVES TO NONQUALIFIED TOPHAT PLANS WHENEVER THE GOVERNMENT TIGHTENS UP ANY EXISTING LIMITS CORPORATIONS AUTOMATICALLY RESTORE THE LOST BENEFITS TO KEEP EXECUTIVES WHOLE SAYS RALPH GRETZINGER WHO SPECIALIZES IN BENEFITS DESIGN FOR HEWITT ASSOCIATES A LINCOLNSHIRE ILL ACTUARIAL AND CONSULTING FIRM THAT HAS JUST COMPLETED A SURVEY OF EXECUTIVE BENEFITS EXECUTIVES WILL GET THE SAME BENEFIT AS BEFORE COMPANIES THAT ARE MORE LIKELY TO PROVIDE EXTRA RETIREMENT AND MEDICAL COVERAGE TO TOP EXECUTIVES INCLUDE OLDLINE MANUFACTURING AND INDUSTRIAL FIRMS SPECIALISTS SAY WEST COAST HIGHTECH FIRMS NEW VENTURES AND WALL STREET FIRMS TEND TO PROVIDE COMPENSATION SOLELY THROUGH PAY BONUS LONGTERM PERFORMANCE AWARDS AND STOCK NOTES THE HEWITT STUDY MANY PEOPLE THINK THAT EXECUTIVES ARE RECEIVING LESS BENEFITS THAN BEFORE BECAUSE OF WELLPUBLICIZED TRIMS IN SOME EXECUTIVE PERKS SUCH AS COUNTRY CLUB MEMBERSHIPS BUT OFTEN COMPANIES THAT CUT PERKS ARE INSTEAD GIVING EXECUTIVES CASH OR OPTIONS SAYS FRANK GLASSNER MANAGING PRINCIPAL OF THE COMPENSATION DESIGN GROUP IN SAN FRANCISCO PERKS ARE PERCEIVED VERY NEGATIVELY BY SHAREHOLDERS GROUPS HE SAYS IN ANY CASE PERKS ARE DISCLOSED ONLY TO THE EXTENT THAT THEY EXCEED 50000 OR 10 OF COMPENSATION WHICHEVER IS LESS 9305250035 930525 BUSINESS BRIEF PLAYERS INTERNATIONAL INC LOSS IN LATEST FISCAL YEAR WIDENED TO 112 MILLION PLAYERS INTERNATIONAL INC CALABASAS CALIF SAID ITS LOSS FOR THE YEAR ENDED MARCH 31 WIDENED TO 112 MILLION OR 128 A SHARE FROM 43 MILLION OR 52 CENTS A SHARE IN FISCAL 1992 THE CASINO OPERATOR DIDN'T PROVIDE SEPARATE FOURTHQUARTER RESULTS ITS STOCK FELL 1125 A SHARE YESTERDAY TO 17875 IN OVERTHECOUNTER TRADING PLAYERS SAID ITS LATEST YEAR INCLUDES A LOSS FROM CONTINUING OPERATIONS OF 41 MILLION OR 47 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS FROM CONTINUING OPERATIONS OF 53600 OR ONE CENT A SHARE THE LATEST YEAR INCLUDES A ONETIME 5 MILLION CHARGE RELATED TO THE PLAYERS RIVERBOAT CASINO IN METROPOLIS ILL THE LATEST LOSS FROM DISCONTINUED OPERATIONS TOTALED 7 MILLION OR 81 CENTS A SHARE COMPARED WITH 43 MILLION OR 51 CENTS A SHARE YEARAGO RESULTS HAVE BEEN RESTATED APPARENTLY TO CATEGORIZE MUCH OF THE COMPANY'S EARLIER BUSINESS AS DISCONTINUED REVENUE TOTALED 57 MILLION COMPARED WITH NO REVENUE IN THE PRIOR YEAR 9305250034 930525 BUSINESS BRIEF MAXUM HEALTH CORP HOLDERS SUE FIRM DIRECTORS AND UNDERWRITERS OF '91 IPO MAXUM HEALTH CORP ALREADY STRUGGLING WITH A DOWNTURN IN THE MOBILE MEDICAL IMAGING BUSINESS SAID IT HAS BEEN NAMED A DEFENDANT IN A CLASS ACTION LAWSUIT FILED BY ITS STOCKHOLDERS THE SUIT FILED IN US DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK ALSO NAMES MAXUM'S DIRECTORS AND CHIEF FINANCIAL OFFICER AS WELL AS ITS UNDERWRITERS MERRILL LYNCH & CO NEW YORK AND MONTGOMERY SECURITIES SAN FRANCISCO THE COMPANY SAID THE DALLAS MEDICAL DIAGNOSTIC IMAGING COMPANY WOULDN'T RELEASE DETAILS OF THE SUIT BUT SAID THE PLAINTIFF CLAIMS TO REPRESENT ALL BUYERS OF MAXUM'S COMMON STOCK BETWEEN SEPT 19 1991 THE DAY OF THE COMPANY'S INITIAL PUBLIC OFFERING THROUGH MARCH 1 1993 IN MARCH THE COMPANY SAID ITS LENDERS HAD BARRED IT FROM FURTHER BORROWING UNDER ITS 55 MILLION REVOLVING CREDIT LINE IN APRIL THE COMPANY REPORTED A FOURTHQUARTER LOSS OF 74 MILLION OR 256 A SHARE COMPARED WITH NET INCOME OF 309000 OR 10 CENTS A SHARE A YEAR EARLIER 9305250033 930525 POLITICS & POLICY FBI AT WHITE HOUSE REQUEST REWROTE AGENCY'S STATEMENT IN TRAVELSTAFF CASE BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE FOUND ITSELF SLIPPING DEEPER INTO CONTROVERSY OVER ITS FIRED TRAVELOFFICE STAFF ADMITTING THAT AN FBI OFFICIAL REDRAFTED A STATEMENT ABOUT THE AGENCY'S POSITION ON THE CASE AFTER A MEETING IN THE WHITE HOUSE GEORGE STEPHANOPOULOS THE WHITE HOUSE COMMUNICATIONS DIRECTOR ACKNOWLEDGED THAT AN OFFICIAL OF THE FEDERAL BUREAU OF INVESTIGATION WAS SUMMONED TO THE WHITE HOUSE FRIDAY AS HEATED PRESS INQUIRIES WERE BEING MADE ABOUT THE FIRING OF THE TRAVEL STAFFERS AT THE MEETING THE FBI OFFICIAL WAS ASKED TO UPDATE THE STATEMENT TO REFLECT THE AGENCY'S VIEW THAT A CRIMINAL INVESTIGATION WAS WARRANTED WE DID ASK YES MR STEPHANOPOULOS SAID WHEN ASKED ABOUT THE NEW STATEMENT YESTERDAY WE WANTED TO MAKE SURE THAT THE FACTS WERE CLARIFIED SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS BLASTED THE WHITE HOUSE FOR THE ACTION ASSERTING THAT WHEN THE MEDIA SPOTLIGHT STARTED FOCUSING TOO BRIGHTLY ON THIS APPARENT PATRONAGE SCAM THE WHITE HOUSE LOOKED TO THE FBI FOR POLITICAL COVER HE SAID HE WAS WRITING TO THE JUSTICE DEPARTMENT FOR AN EXPLANATION HE ADDED ALL I SEE IS POLITICS THE CLUMSY POLITICS OF A FEW FRIGHTENED INDIVIDUALS WHOSE HANDS WERE VERY INCONVENIENTLY CAUGHT IN THE WHITE HOUSE COOKIE JAR THE DISCLOSURES COME AS THE WHITE HOUSE IS TRYING TO DISTANCE ITSELF FROM WHAT IT ACKNOWLEDGES WAS A DISASTROUS SERIES OF EVENTS LAST WEEK THAT INCLUDED THE PRESIDENT'S 200 HAIRCUT ON AIR FORCE ONE IN LOS ANGELES DESPITE MR CLINTON'S ASSERTION YESTERDAY THAT WE HAD A GREAT WEEK LAST WEEK MR STEPHANOPOULOS SAID THE PRESIDENT WAS DISAPPOINTED IN THE WEEK BUT HE ADDED WE'RE GOING TO LEARN FROM IT AND MOVE FORWARD THE WHITE HOUSE BEGAN TO REDOUBLE EFFORTS TO FOCUS ITSELF THE PRESIDENT MET BRIEFLY WITH HIS PRESIDENTIAL CAMPAIGN'S TOP STRATEGIST JAMES CARVILLE A MAJOR MEETING ON THE STILLPENDING HEALTHCARE OVERHAUL BILL WAS POSTPONED LAST EVENING SO THE PRESIDENT COULD MAKE CALLS TO LAWMAKERS BEFORE THE HOUSE IS EXPECTED TO VOTE THIS WEEK ON HIS TROUBLED ECONOMIC PACKAGE BUT THE TRAVELOFFICE MESS WOULDN'T GO AWAY YESTERDAY THE PROBLEM BEGAN WEDNESDAY WHEN THE WHITE HOUSE FIRED ITS SEVENMEMBER TRAVEL STAFF ALLEGING FINANCIAL MISMANAGEMENT SUBSEQUENTLY MEMOS CAME TO LIGHT THAT LED TO REPUBLICAN CHARGES THAT THE MOVE WAS MOTIVATED BY CRONYISM AND POTENTIAL SELFDEALING FOR EXAMPLE THE FIRING OCCURRED AFTER A CLINTON FRIEND HARRY THOMASON A TELEVISION PRODUCER AND OWNER OF AN AIRLINECHARTER BUSINESS COMPLAINED ABOUT THE TRAVEL STAFF CATHERINE CORNELIUS A DISTANT COUSIN OF THE PRESIDENT WHO COORDINATED HIS CAMPAIGN TRAVEL COWROTE A MEMO IN FEBRUARY PROPOSING THAT THE TRAVEL OFFICE BE RESTRUCTURED WITH HER IN A PROMINENT SPOT THE OFFICE IS NOW BEING RUN BY THE PRESIDENT OF THE COMPANY THAT PROVIDED THE CLINTON CAMPAIGN WITH ITS PRESSAIRPLANE CHARTER MR THOMASON THE WHITE HOUSE DISCLOSED YESTERDAY HAS A WHITE HOUSE PASS AND USES WHITE HOUSE PHONES WHEN HE IS VISITING MS CORNELIUS IS WORKING IN THE TRAVEL OFFICE ON FRIDAY AFTER THE DISCLOSURE OF THE CORNELIUS MEMO AND ANOTHER MEMO WRITTEN BY A THOMASON PARTNER ABOUT SECURING WHITE HOUSE TRAVEL BUSINESS JOHN COLLINGWOOD THE FBI'S CHIEF SPOKESMAN GOT A MESSAGE TO GO TO THE WHITE HOUSE MR COLLINGWOOD MET IN MR STEPHANOPOULOS'S OFFICE FOR ABOUT 15 MINUTES TO DISCUSS THE FBI'S INVOLVEMENT IN THE CASE IN ON THE MEETING WERE MR STEPHANOPOULOS PRESS SECRETARY DEE DEE MYERS WHITE HOUSE COUNSEL BERNARD NUSSBAUM TWO ATTORNEYS IN MR NUSSBAUM'S OFFICE AND DAVID WATKINS THE WHITE HOUSE DIRECTOR OF ADMINISTRATION AND THE MAN WHO FIRED THE TRAVEL STAFF THE WHITE HOUSE SAID MR COLLINGWOOD HAD WRITTEN A STATEMENT FOR USE BY THE FBI THURSDAY WHEN REPORTERS ASKED QUESTIONS THAT STATEMENT SAID THAT THE FBI WAS AWAITING MORE INFORMATION TO DETERMINE THE NEXT STEPS IN THE INVESTIGATION AFTER THE MEETING MR COLLINGWOOD RETURNED TO HIS OFFICE AND ADDED A SENTENCE TO THE WHITE HOUSE'S LIKING THAT STATED THERE WAS SUFFICIENT INFORMATION FOR THE FBI TO DETERMINE THAT ADDITIONAL CRIMINAL INVESTIGATION IS WARRANTED MS MYERS SAID MR COLLINGWOOD WASN'T PRESSURED TO ADD THE SENTENCE BUT SHE SAID WE WEREN'T UNHAPPY ABOUT THE WAY IT CHANGED IT WAS CLEARER SHE ALSO SAID IT WAS ADDED AS A RESULT OF WHAT CAME UP IN THE MEETING MR COLLINGWOOD SAID HE WROTE THE EXTRA SENTENCE HIMSELF THAT HE WASN'T PRESSURED TO ADD IT AND THAT THE WRITING OF SUCH STATEMENTS WAS ROUTINE MR COLLINGWOOD TELEFAXED THE NEW STATEMENT TO THE WHITE HOUSE ALSO AS A MATTER OF ROUTINE HE SAID MR COLLINGWOOD SAID HE WAS SURPRISED THAT THE WHITE HOUSE ISSUED THE FBI STATEMENT LATER IN THE DAY USUALLY SUCH STATEMENTS ARE GIVEN OUT ONLY IN RESPONSE TO REPORTERS' QUESTIONS TO THE FBI WE PUT IT OUT I GUESS WE SHOULDN'T HAVE DONE THAT MS MYERS SAID THAT'S NOT THEIR STANDARD OPERATING PROCEDURE ON THE SAME DAY OF THE WHITE HOUSE MEETING ATTORNEY GENERAL JANET RENO WAS MEETING WITH FBI DIRECTOR WILLIAM SESSIONS TO DISCUSS HIS FUTURE MR SESSIONS IS FACING ALLEGATIONS OF ETHICAL VIOLATIONS WHICH HE DENIES AND SOME HAVE QUESTIONED THE FBI'S COOPERATION AT A TIME WHEN THE DIRECTOR IS TRYING TO PERSUADE THE ADMINISTRATION TO LET HIM KEEP HIS JOB 9305250032 930525 BUSINESS BRIEF POWELL INDUSTRIES INC NET AFTER A GAIN ROSE 60 IN FIRM'S FISCAL 2ND QUARTER POWELL INDUSTRIES INC HOUSTON SAID FISCAL SECONDQUARTER NET INCOME ROSE 60 TO 35 MILLION OR 33 CENTS A SHARE INCLUDING A ONETIME PAYMENT FROM A CUSTOMER TO SETTLE A LAWSUIT EXCLUDING THE PRETAX PAYMENT OF 35 MILLION INCOME FELL 47 TO 12 MILLION OR 11 CENTS A SHARE FROM YEARAGO NET INCOME OF 22 MILLION OR 21 CENTS A SHARE THE COMPANY SAID POWELL WHICH DESIGNS AND MANUFACTURES ELECTRICAL GENERATION EQUIPMENT BLAMED THE DECLINE ON LOWERTHANEXPECTED DEMAND FOR ITS EQUIPMENT CAUSED BY A SLUGGISH ECONOMY IT SAID IT EXPECTS THE TREND TO CONTINUE IN THE THIRD AND FOURTH FISCAL QUARTERS REVENUE FOR THE SECOND QUARTER ENDED APRIL 30 WAS 349 MILLION FLAT WITH THE YEARAGO PERIOD THE ONETIME PAYMENT CAME FROM YORK RESEARCH CORP A NEW YORK CITYBASED DEVELOPER OF COGENERATION PROJECTS 9305250031 930525 BUSINESS BRIEF KELLOGG CO SECONDPERIOD PERSHARE NET IS SEEN 10 BELOW YEARAGO KELLOGG CO SAID IT EXPECTS SECONDQUARTER PERSHARE EARNINGS TO BE ABOUT 10 BELOW LAST YEAR'S RECORD 68 CENTS THE MAKER OF READYTOEAT CEREALS CITED SLOWERTHANEXPECTED RECOVERIES FROM RECESSION IN SEVERAL KEY MARKETS UNFAVORABLE FOREIGN CURRENCY EXCHANGE RATES AND ADJUSTMENTS IN SUPERMARKET INVENTORIES THE FORECAST COMING JUST A MONTH AFTER AN UPBEAT ANNUAL MEETING SURPRISED WALL STREET KELLOGG STOCK FELL 275 TO 53875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE SELLOFF SPREAD TO OTHER CEREAL STOCKS AS WELL THE BATTLE CREEK MICH COMPANY SAID IT STILL EXPECTS TO REPORT RECORD PERSHARE EARNINGS FOR THE YEAR BUT ACHIEVING DOUBLEDIGIT GROWTH OVER LAST YEAR'S 275 PER SHARE WILL BE CHALLENGING ANALYSTS HAD EXPECTED PROFIT OF ABOUT 75 CENTS A SHARE FOR THE QUARTER ENDING JUNE 30 AFTER THE ANNOUNCEMENT ESTIMATES WERE CUT TO ABOUT 62 CENTS ONE INVESTMENT CONCERN MABON SECURITIES LOWERED ITS RATING ON THE STOCK TO HOLD FROM BUY 9305250030 930525 BUSINESS BRIEF JONES & BABSON INC GENERALI GROUP UNIT AGREES TO PURCHASE FUND COMPANY JONES & BABSON INC A KANSAS CITY MO MUTUAL FUND COMPANY SAID IT AGREED TO BE BOUGHT BY BUSINESSMEN'S ASSURANCE CO OF AMERICA THE US ARM OF GENERALI GROUP AN ITALIAN INSURANCE COMPANY JONES & BABSON OVERSEES 17 BILLION IN 19 MUTUAL FUNDS IN TWO FUND GROUPS BABSON FUNDS AND UMB FUNDS JONES & BABSON CONTRACTS DAYTODAY MANAGEMENT OF THE FUNDS' PORTFOLIOS TO UNITED MISSOURI BANK KANSAS CITY AND DAVID L BABSON & CO A MONEYMANAGEMENT COMPANY IN CAMBRIDGE MASS JONES & BABSON SAID IN A NEWS RELEASE THAT THE ACQUISITION WON'T AFFECT THE MANAGEMENT OF THE FUNDS BUSINESSMEN'S ASSURANCE IS INTERESTED IN USING THE JONES & BABSON FUNDS TO TAP INTO THE GROWING RETIREMENTFUND MARKET ACCORDING TO GIORGIO BALZER CHIEF EXECUTIVE OF THE KANSAS CITYBASED INSURER CLOSELY HELD JONES & BABSON DIDN'T DISCLOSE THE PRICE OF THE ACQUISITION WHICH IS PENDING APPROVAL OF REGULATORS AND OF FUND SHAREHOLDERS 9305250029 930525 BUSINESS BRIEF GEICO CORP FOUR AFFILIATES AGREE TO PAY REBATES TOTALING 21 MILLION FOUR AFFILIATES OF GEICO CORP WILL PAY REBATES TO POLICYHOLDERS WORTH 21 MILLION IN AN AGREEMENT REACHED WITH CALIFORNIA'S STATE INSURANCE COMMISSION UNDER THE AGREEMENT GEICO INDEMNITY CO GOVERNMENT EMPLOYEES INSURANCE CO GEICO GENERAL INSURANCE CO AND CRITERION CASUALTY CO WILL PAY 90000 POLICYHOLDERS REFUNDS OF 233 APIECE THE REBATE APPLIES TO CUSTOMERS WHO HELD POLICIES FROM NOV 8 1988 TO NOV 7 1989 UNDER PROPOSITION 103 AN INSURANCEROLLBACK INITIATIVE APPROVED BY STATE VOTERS IN 1988 HOLDERS OF HOMEOWNERS' AND AUTOINSURANCE POLICIES MIGHT RECEIVE AN ESTIMATED 2 BILLION IN REBATES GEICO WASHINGTON DC IS THE 16TH COMPANY TO AGREE TO PAY A REBATE LIABILITY TO DATE COMPANIES HAVE AGREED TO PAY 28 MILLION CALIFORNIANS MORE THAN 392 MILLION IN REBATES THE STATE SAID 9305250028 930525 BUSINESS BRIEF ALBERTSON'S INC FOOD RETAILER'S NET ROSE FOR THE FISCAL FIRST QUARTER WHILE THE RETAIL FOOD INDUSTRY AS A WHOLE HAS BEEN STRUGGLING WITH A CONTINUING SLUMP BOISE IDAHOBASED ALBERTSON'S MATCHED ANALYSTS' EXPECTATIONS WITH NET EARNINGS OF 741 MILLION OR 58 CENTS A SHARE ALBERTSON'S BOTTOMLINE NET FOR THE YEAREARLIER PERIOD WAS 261 MILLION OR 20 CENTS A SHARE IN THE SAME PERIOD LAST YEAR THE COMPANY EARNED 639 MILLION OR 48 CENTS A SHARE BEFORE ONETIME CHARGES FOR ACCOUNTING CHANGES AND THE ACQUISITION OF 74 JEWEL OSCO STORES FROM AMERICAN STORES CO THE FOOD RETAILER SAID ITS SAMESTORE SALES FOR THE PERIOD ROSE 4 OVER A YEAR AGO OVERALL ALBERTSON'S 13WEEK SALES WERE 272 BILLION UP 18 FROM LAST YEAR'S SALES OF 230 BILLION ALBERTSON'S WHICH OPERATES 651 STORES IN 19 WESTERN MIDWESTERN AND SOUTHERN STATES SAID IT PLANS TO OPEN 35 STORES IN 1993 THE COMPANY SAID IT CLOSED SEVEN STORES IN THE FIRST QUARTER 9305250027 930525 BUSINESS BRIEF PROVIDENTIAL CORP COMPANY AGREES TO SETTLE DISPUTE OVER EXECUTIVE PAY PROVIDENTIAL CORP IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SAID IT SIGNED A PRELIMINARY AGREEMENT WITH BAUPOST GROUP TO SETTLE A DISPUTE OVER EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE BAUPOST WHICH HOLDS A 24 STAKE IN SAN FRANCISCOBASED PROVIDENTIAL RECENTLY FILED A LAWSUIT AND BEGAN A PROXY SOLICITATION AGAINST PROVIDENTIAL CLAIMING THAT THE MORTGAGE CONCERN'S EXECUTIVE PAY WAS OUT OF LINE WITH ITS PERFORMANCE THE AGREEMENT WHICH IS BEING FINALIZED WILL END THE PROXY SOLICITATION AND THE LAWSUIT THE FILING SAID UNDER THE AGREEMENT PROVIDENTIAL'S BOARD WOULD BE EXPANDED TO SEVEN MEMBERS FROM FIVE AND WOULD INCLUDE BAUPOST REPRESENTATIVES AND TWO INDEPENDENT DIRECTORS PRIOR STOCK OPTION AND STOCK PURCHASE PLANS FOR PROVIDENTIAL EXECUTIVES AND DIRECTORS WOULD BE SUSPENDED AND EMPLOYMENT AGREEMENTS WITH THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WOULD BE MODIFIED WILLIAM TEXIDO PROVIDENTIAL'S CHAIRMAN PRESIDENT AND CEO SAID THE COMPANY AGREED TO BAUPOST'S DEMANDS BECAUSE THE CAMBRIDGE MASS INVESTMENT GROUP HOLDS THE LARGEST BLOC OF HIS COMPANY'S STOCK I'D BE THROWING GOOD MONEY AFTER BAD TO FIGHT THEM MR TEXIDO SAID BAUPOST OFFICIALS DID NOT RETURN PHONE CALLS YESTERDAY 9305250026 930525 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/16 HIGH 3 1/8 LOW 3 1/8 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 89 DAYS 315 90 TO 119 DAYS 317 120 TO 149 DAYS 320 150 TO 179 DAYS 323 180 TO 229 DAYS 325 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 316 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 264 TWO MONTHS 267 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 310 ONE MONTH 318 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 305 60 DAYS 309 90 DAYS 312 120 DAYS 315 150 DAYS 319 180 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 739 60 DAYS 748 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 732 60 DAYS 742 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9305250025 930525 GENERAL MILLS SETS RESTRUCTURING CHARGE REFLECTING WORRY OVER CLINTON'S POLICIES BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL MILLS INC ANTICIPATING RISING GOVERNMENTIMPOSED COSTS THAT COULD CAUSE IT TO FALL SHORT OF EARNINGS ESTIMATES IN FUTURE YEARS WILL TAKE AS MUCH AS 50 MILLION IN RESTRUCTURING CHARGES IN THE CURRENT QUARTER THE MINNEAPOLIS PACKAGEDFOODS AND RESTAURANT COMPANY SAID IT IS WORRIED ABOUT THE FEDERAL TAX RATE FOR CORPORATIONS GOING TO 35 FROM 34 AND THE ECONOMIC IMPACT ON LARGE EMPLOYERS SUCH AS ITSELF OF LIKELY NEW MANDATED HEALTHCARE POLICIES AS SUCH IT IS AMONG THE FIRST MAJOR US CORPORATIONS TO CITE THE CLINTON ADMINISTRATION'S PROPOSED ECONOMIC POLICIES AS A REASON FOR SPEEDING UP COSTSAVING MOVES THAT OTHERWISE WOULD HAVE TAKEN TWO OR THREE YEARS GENERAL MILLS BECAME A CORPORATE BELLWETHER OF SORTS BY ADOPTING ACCOUNTING CHANGES FOR RETIREMENT BENEFITS SEVERAL YEARS BEFORE OTHER COMPANIES THE ESTIMATED 45 MILLION TO 50 MILLION IN CHARGES COVER THE CLOSING OF 31 RED LOBSTER AND OLIVE GARDEN RESTAURANTS IN NORTH AMERICA AND THE RETRAINING OF BOTH BLUECOLLAR AND WHITECOLLAR EMPLOYEES TO BECOME MORE PRODUCTIVE WE'RE TRYING TO DRAMATICALLY IMPROVE PRODUCTIVITY ACROSS THE COMPANY A SPOKESMAN SAID GENERAL MILLS WHICH OPERATES MORE CASUALDINING RESTAURANTS IN THE US THAN ANY OTHER COMPANY NORMALLY CLOSES ONLY A HANDFUL EACH YEAR BUT BECAUSE OF WHAT THE SPOKESMAN CALLED GREATER BURDENS THAN WE ANTICIPATED A YEAR OR TWO AGO THOSE NUMBERS ARE BEING RAISED TO PERFORM AT THE LEVEL WE WANT TO WE NEED TO MAKE CHANGES FASTER THAN WE WOULD HAVE ORDINARILY THE SPOKESMAN SAID WE'RE PULLING THEM ALL FORWARD IN ORDER TO IMPROVE OUR PERFORMANCE NOW HE SAID ACKNOWLEDGING THAT WITH ANTICIPATED CHANGES IN TAXES IT WOULD BE MORE DIFFICULT TO REACH EARNINGS ESTIMATES SO WE WANT TO GIVE OURSELVES A BETTER SHOT AT THEM HE SAID THE EXPECTED RESTRUCTURING CHARGE EQUAL TO BETWEEN 28 CENTS AND 30 CENTS A SHARE WOULD OCCUR IN THE CURRENT QUARTER WHICH ENDS MAY 30 WHEN COMPLETED THE COMPANY SAID THE ACTIONS COULD REDUCE THE ADVERSE IMPACT OF GOVERNMENT POLICIES BY ABOUT 15 MILLION OR NINE CENTS A SHARE IN A CLOSEDMEETING ADDRESS TO SECURITIES ANALYSTS IN MARCH GENERAL MILLS CHAIRMAN H BREWSTER ATWATER JR HINTED AT YESTERDAY'S ANNOUNCEMENT SAYING THE COMPANY WAS ACCELERATING OUR EFFORTS THROUGHOUT GENERAL MILLS TO INCREASE INTERNAL EFFICIENCY TO OFFSET THE IMPACT OF SOME OF CLINTON'S ECONOMIC PROPOSALS MR ATWATER SAID THE CLINTON ADMINISTRATION'S ECONOMIC PROPOSALS MEAN UNCERTAINTIES FOR VIRTUALLY EVERYONE AND EVERY BUSINESS HE TOLD ANALYSTS IT WAS HIS INTENTION TO MANAGE SO THAT WHATEVER FORM THOSE POLICIES ULTIMATELY TOOK THEY WILL NOT AFFECT OUR ABILITY TO ACHIEVE OUR LONGTERM FINANCIAL GOALS THE COMPANY MADE AVAILABLE A TEXT OF THE CHAIRMAN'S REMARKS AMONG ITS STATED GOALS ARE TO ACHIEVE DOUBLEDIGIT GROWTH IN PERSHARE EARNINGS AND TO INCREASE ITS RETURN ON SALES TO AS MUCH AS 8 BY THE YEAR 2000 THE RETURN ON SALES RATE WAS 65 LAST YEAR MANY OF THE RESTAURANTS SLATED TO BE CLOSED ARE IN CANADA WHERE THE RECESSION CURBED DINING OUT AND CAUSED GENERAL MILLS' RESTAURANT BUSINESS THERE TO LOSE MONEY SIX OF 24 RED LOBSTERS IN TORONTO WILL BE CLOSED THE COMPANY SAID IN THE US THE CLOSING WILL INCLUDE FOUR OF 28 RED LOBSTERS IN LOS ANGELES AND THREE OF 15 RED LOBSTERS IN HOUSTON AS WELL AS UNITS IN CHICAGO DETROIT ST LOUIS KANSAS CITY AND ORLANDO ALSO TWO OLIVE GARDEN ITALIANSTYLE RESTAURANTS IN FLORIDA WILL CLOSE AS WILL TWO IN CANADA DESPITE THOSE CLOSINGS A GENERAL MILLS SPOKESMAN SAID THE COMPANY STILL PLANS TO OPEN ABOUT 50 RED LOBSTERS AND AS MANY OLIVE GARDENS IN THE CURRENT YEAR ALL TOLD THE COMPANY OPERATES ABOUT 1000 RESTAURANTS WHICH CONTRIBUTED ABOUT 30 OF FISCAL 1992'S 78 BILLION IN SALES IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY GENERAL MILLS FELL 2 TO 67375 BUT ANALYSTS ATTRIBUTED THE DECLINE TO INDUSTRYWIDE CONCERN ABOUT SALES OF READYTOEAT CEREALS 9305250024 930525 INTERNATIONAL BRITAIN'S MAJOR CAN'T BREAK OUT OF SLUMP PLAGUING HIM DESPITE NATION'S REBOUND BY CRAIG FORMAN AND NICHOLAS BRAY STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON BRITAIN'S ECONOMY IS RECOVERING INFLATION IS AT 13 A 29YEAR LOW AND UNEMPLOYMENT IS FALLING SO WHY IS JOHN MAJOR IN SO MUCH TROUBLE MR MAJOR CAN'T BREAK OUT OF THE MALAISE THAT HAS PLAGUED HIS PREMIERSHIP FOR A YEAR DESPITE THE ECONOMY'S RECENT REBOUND HIS CONSERVATIVE PARTY'S SETBACK IN LOCAL ELECTIONS AND A PARLIAMENTARY BYELECTION THIS MONTH COUPLED WITH A TOUGH FIGHT IN ANOTHER BYELECTION TO BE HELD SOON CONTRIBUTE TO A SENSE OF TROUBLE OVER THE WEEKEND TORY MINISTERS SEEMED IN DISARRAY OVER PLANS TO CUT SPENDING ON THE WELFARE STATE TODAY MR MAJOR FACES ANOTHER POTENTIALLY DAMAGING REBELLION BY CONSERVATIVE BACKBENCHERS OVER TORY PLANS TO PRIVATIZE BRITISH RAIL TURNABOUTS OVER THE HEALTH SERVICE EDUCATIONAL TESTING AND OTHER POLICIES SUGGEST THE TORIES' GRIP ON THE LEVERS OF POWER IS TENTATIVE MR MAJOR'S RECENT VICTORY IN A KEY PARLIAMENTARY VOTE ON THE MAASTRICHT TREATY SHOULD HAVE USHERED IN A NEW BEGINNING INSTEAD HE GIVES THE CLEAR IMPRESSION OF LURCHING FROM CRISIS TO CRISIS HE CAN'T GET AWAY FROM SPECULATION ABOUT A MAJOR CABINET RESHUFFLE IN WHICH CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT WOULD BE BUMPED EVEN MORE WORRISOME THERE IS LITTLE EVIDENCE THAT THE PUBLIC KNOWS WHAT MR MAJOR STANDS FOR OR HAS A CLEAR IDEA HOW HE DIFFERS ON ISSUES FROM HIS PREDECESSOR MARGARET THATCHER JOHN MAJOR IS IN BIG TROUBLE SAYS ROBERT WORCESTER CHAIRMAN OF MARKET & OPINION RESEARCH INTERNATIONAL LTD WHO DUBS MR MAJOR'S ADMINISTRATION THE BANANASKIN REPUBLIC BECAUSE OF ITS DISASTROUS POLITICAL SLIPUPS THE VIEW DIFFERS OF COURSE AT 10 DOWNING ST THE WAY MR MAJOR'S SENIOR ADVISERS SEE IT THIS IS THE DARKEST HOUR BEFORE DAWN ECONOMIC RECOVERY WILL LEAD TO A RECOVERY IN MR MAJOR'S POLITICAL FORTUNES WE DON'T SENSE A CRISIS SAYS ONE BUT VOTER SENTIMENT DOESN'T SEEM TO BE REBOUNDING QUICKLY MR WORCESTER FOR ONE FIGURES MR MAJOR HAS BEEN SO CLEARLY LINKED WITH THE RECESSION THAT THE ECONOMY WOULD HAVE TO COME ROARING BACK TO CHANGE VOTERS' IMPRESSIONS OF TORY BUNGLING IF THE ECONOMY DOESN'T PULL MR MAJOR UP BY HIS BOOTSTRAPS IN THE NEXT 18 MONTHS THE TORIES COULD DUMP HIM SAYS MR WORCESTER THE GOVERNMENT HAS DAMAGED ITS CREDIBILITY WITH AN UNPRECEDENTED RUN OF POLICY UTURNS AMID WIDESPREAD CRITICISM IT HAS HAD TO BACK DOWN ON ALMOST EVERY MAJOR INITIATIVE IN RECENT MONTHS FROM CLOSING UNPROFITABLE COAL PITS AND SETTING NEW SCHOOL TESTS FOR CHILDREN TO CUTTING BACK THE SIZE OF THE BRITISH MILITARY IN THE PAST FEW DAYS IT HAS BEEN AT THE CENTER OF A DISPUTE OVER REPORTS THAT IT IS CONSIDERING CHARGING PENSIONERS AND CHILDREN FOR PRESCRIPTION DRUGS THEY NOW GET FOR FREE MR MAJOR APPEARS TO HAVE BACKED AWAY FROM THAT PLAN BUT HIS RETREAT IS LIKELY TO BE MERELY A PRELIMINARY FOR OTHER EQUALLY UNPOPULAR TAX MOVES THIS ISN'T JUST MIDTERM BLUES IT'S A GOVERNMENT WITHOUT A FIRM HAND ON THE TILLER SAYS MR WORCESTER RECENT POLLS GIVE MR MAJOR A DRUBBING A GALLUP SURVEY IN THE DAILY TELEGRAPH GAVE THE OPPOSITION LABOR PARTY A 17POINT LEAD OVER THE CONSERVATIVES ACCORDING TO THE POLL MR MAJOR'S GOVERNMENT IS ONE OF THE MOST UNPOPULAR SINCE WORLD WAR II POLLS HAVE FOUND SIX OUT OF 10 BRITONS REGARD MR MAJOR'S ADMINISTRATION AS INEFFECTIVE OR OUT OF TOUCH MOST OF THE PROBLEMS FLOW FROM THE RECESSION THE LONGEST IN POSTWAR BRITISH HISTORY BUT FIRSTQUARTER GROWTH FIGURES SHOWED THE RECESSION IS OVER A THIRD CONSECUTIVE MONTHLY FALL IN UNEMPLOYMENT REPORTED RECENTLY WAS ANOTHER SIGNAL THAT THE ECONOMY IS TURNING AROUND RECENT VOTES IN PARLIAMENT HAVE SHOWN THE FRAGILITY OF MR MAJOR'S 18SEAT MAJORITY VULNERABLE TO THE ANGRY MINORITY OF ANTIMAJOR TORIES AND TO THE BULK OF THE RANK AND FILE WHO DON'T SEEM TO SUPPORT HIM STRONGLY BUT WHO SEE NO ALTERNATIVE MR MAJOR IS ALREADY IN EFFECT RUNNING A MINORITY GOVERNMENT SAYS DAVID HOWELL A PROMINENT CONSERVATIVE MEMBER OF PARLIAMENT NIGHT AFTER NIGHT THE TORY DISSIDENTS ARE REDUCING THE GOVERNMENT'S MAJORITY TO A PAPERTHIN MAJORITY FURTHER BYELECTIONS SEEM LIKELY TO MAKE MR MAJOR'S POSITION STILL MORE PRECARIOUS RAISING THE SPECTER OF A NOCONFIDENCE MOTION THAT HE MIGHT NOT SURVIVE TO RECOVER POPULARITY MANY PEOPLE THINK MR MAJOR NEEDS A FRESH TEAM TO CONVINCE THE ELECTORATE ABOUT PROSPECTS FOR A NEW START I WOULD LIKE TO SEE A COMPLETE CHANGE OF FACES IN THE CABINET SAYS ONE LONGTIME TORY VOTER A PUBLIC RELATIONS OFFICER AT A LONDON MERCHANT BANK BUT MR MAJOR'S OWN POSITION IS INCREASINGLY IN QUESTION WHETHER HE WILL HAVE WHAT IT TAKES TO REVIVE HIS PARTY'S FORTUNES REMAINS UNCERTAIN TORY ACTIVISTS SMARTING FROM THEIR RECENT ELECTORAL DEFEATS SAY THEIR PATIENCE IS RUNNING OUT 9305250023 930525 LETTERS TO THE EDITOR MUST REMEMBER THIS I AM SHOCKED SHOCKED TO FIND APRIL 19 COMPUTERS ARTICLE A MICROSOFT PRODUCT THAT INCLUDES HUMPHREY BOGART SAYING PLAY IT AGAIN SAM WHILE I REALIZE THAT THIS DOES NOT AMOUNT TO A HILL OF BEANS IN THIS CRAZY WORLD ANY TRUE CASABLANCA AFICIONADO CAN TELL YOU THOSE IMMORTAL WORDS WERE NEVER SPOKEN BY RICK MICROSOFT OR YOUR REPORTER MAY NOT REGRET THEIR ERROR TODAY OR TOMORROW BUT THEY WILL SOON AND FOR THE REST OF THEIR LIFE ALL I CAN THINK IS THAT ONE OF THEM LIKE RICK HIMSELF WAS MISINFORMED ABOUT CASABLANCA 9305250022 930525 ABREAST OF THE MARKET STOCKS END MIXED DESPITE RISE IN BOND PRICES ON FED DECISION BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LINGERING PESSIMISM THAT INFLATION LURKS AROUND THE CORNER KEPT STOCK PRICES MIXED DESPITE BUOYANT BOND PRICES ANALYSTS SAID THE DOW JONES INDUSTRIAL AVERAGE BROKE THROUGH THE 3500 LEVEL AGAIN ENDING 1495 POINTS OR 043 HIGHER AT 350778 AFTER SOME MANIC SWINGS INTRADAY THE INDUSTRIALS SHOT UP ABOUT 19 POINTS IN EARLY AFTERNOON TRADING ON SOME PROGRAMBUYING ACTIVITY BROADER INDEXES STAYED HIGHER THROUGHOUT THE SESSION THE STANDARD & POOR'S 500STOCK INDEX CLIMBED 216 POINTS OR 048 TO 44800 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 080 POINT OR 032 TO FINISH AT 24707 BUT BIG BOARD ADVANCERS TRAILED RETREATING ISSUES 950 TO 992 TRADERS SAID PROGRAM TRADING DOMINATED AN OTHERWISE FEATURELESS AND QUIET SESSION BIG BOARD VOLUME TOTALED 196730000 SHARES SIGNIFICANTLY BELOW THE 273250000 SHARES THAT CHANGED HANDS FRIDAY THE WALL STREET JOURNAL REPORTED YESTERDAY THAT FEDERAL RESERVE OFFICIALS VOTED TO LEAN TOWARD HIGHER SHORTTERM INTEREST RATES AT THEIR CLOSEDDOOR MEETING LAST WEEK THE GOVERNMENT'S LONG BOND REACTED TO THE NEWS BY CRUISING MORE THAN 1/2 POINT HIGHER DEPRESSING ITS YIELD TO THE CRITICAL 7 MARK SOME ANALYSTS SAID DOOMSAYERS ARE STILL IN ABUNDANCE IN THE STOCK MARKET I THINK THERE ARE ENOUGH PESSIMISTS AND DISBELIEVERS AROUND TO KEEP A MIXED MARKET MOVING SAID GENE JAY SEAGLE THE DIRECTOR OF TECHNICAL RESEARCH AT GRUNTAL & CO MARKET WATCHERS SAID INFLATION FEARS ARE OVERBLOWN THEY POINT NOT ONLY TO RALLYING BONDS BUT TO SLUMPING GOLD PRICES GOLD WAS TRADING YESTERDAY AT 37390 AN OUNCE DOWN 360 GOLD PRICES HAVE RECENTLY BEEN STRONG WHICH MANY VIEW AS A PRECURSOR TO INFLATION JAMES ANDREWS FIRST VICE PRESIDENT IN CHARGE OF INSTITUTIONAL TRADING AT JANNEY MONTGOMERY SCOTT SAID TECHNOLOGY STOCKS IN PARTICULAR RECOUPED SOME LOSSES AS THEY HAD BEEN HIT HARD RECENTLY IT WAS A CRAZY MARKET HE SAID THERE WAS A LACK OF CONCENTRATION IF THIS LOW VOLUME CONTINUES WE'RE GOING TO SEE SOME SPILLOVER FROM THE TECHNOLOGY STOCKS AND THE GROWTH STOCKS TO OTHER AREAS GRUNTAL'S MR SEAGLE SAID THE STRONG RALLIES LAST WEDNESDAY AND THURSDAY THAT SENT THE INDUSTRIALS TO CONSECUTIVE RECORD HIGHS ARE PROBABLY THE BEGINNING OF SOMETHING BIG HE ADDED THAT THE LONG NARROW TRADING RANGE THAT WE WERE IN WAS BROKEN TO THE UPSIDE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ENDED ITS THREESESSION WINNING STREAK BY RELINQUISHING 117 POINTS OR 027 TO FINISH AT 43169 SOME BLUE CHIPS POSTED MODEST GAINS AMERICAN TELEPHONE & TELEGRAPH FOR INSTANCE ROSE 1 3/8 TO 60 1/2 IN ACTIVE TRADING THE COMPANY AND ITS NCR SUBSIDIARY BOTH UNVEILED NEW PRODUCTS INTERNATIONAL BUSINESS MACHINES CORP ADVANCED 1 3/8 TO 49 3/4 IBM SAID IT HOPES TO RAISE ABOUT 750 MILLION THROUGH A PREFERRED STOCK OFFERING THE COMPUTER GIANT ALSO ANNOUNCED SOFTWARE AGREEMENTS WITH CLARIS CORP AND CREATIVE LABS INC MOTOROLA MEANWHILE EDGED UP 2 1/4 TO 80 1/8 DISNEY ADDED 1 1/4 TO 44 1/4 AND HEWLETTPACKARD GAINED 2 TO 85 5/8 GENERAL MILLS FELL 2 TO 67 3/8 FOLLOWING ITS ANNOUNCEMENT THAT IT WILL RESTRUCTURE SOME CONSUMER FOODS MANUFACTURING FACILITIES AND CLOSE SOME RESTAURANTS THE COMPANY PLANS TO TAKE A FOURTHQUARTER RESTRUCTURING CHARGE OF 45 MILLION TO 50 MILLION OR 28 CENTS A SHARE TO 30 CENTS QUAKER OATS SLIPPED 1 1/8 TO 72 1/2 ELSEWHERE CIRCUS CIRCUS ENTERPRISES JUMPED 2 1/2 TO 55 THE COMPANY SAID FRIDAY THAT IT HAS AGREED PRELIMINARILY TO DEVELOP A RIVERBOAT CASINO IN TUNICA COUNTY MISS ONE OF THREE AT THE SITE THE MISSISSIPPI GAMING COMMISSION YESTERDAY APPROVED THE SITE FOR THE PROPOSED DEVELOPMENT SEVERAL COMPANIES MOVED HIGHER ON BROKERAGE FIRM UPGRADES DEERE & CO LEAPED 2 1/4 TO 61 1/8 SMITH BARNEY HARRIS UPHAM ANALYST TOBIAS LEVKOVITCH RAISED HIS INVESTMENT RATING ON THE FARM EQUIPMENT CONCERN'S SHARES TO BUY FROM HOLD SAYING THAT PRICES IN THE INDUSTRY REMAIN FIRM DOW CHEMICAL CLIMBED 1 1/2 TO 56 FOLLOWING A PAINEWEBBER UPGRADE TO BUY FROM ATTRACTIVE PEPSICO THE DAY'S MOST ACTIVE ISSUE WITH 29 MILLION SHARES CHANGING HANDS LOST 3/8 TO 36 1/2 KEYSTONE CONSOLIDATED ROSE 1 1/2 TO 10 1/2 AFTER SAYING IT PLANS TO TAKE A SECONDQUARTER CHARGE OF 55 MILLION OR 1 A SHARE TO REFLECT EXCISE TAXES ON CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN ANDREA ELECTRONICS SLIPPED 11 OR 128 TO 75 ON THE AMERICAN STOCK EXCHANGE AFTER A HUGE RUNUP RECENTLY 9305250021 930525 INTERNATIONAL TURKEY IS LIKELY TO LET ITS LIRA CIRCULATE IN IRAQ'S KURDISTAN AREA BY JAMES DORSEY SPECIAL TO THE WALL STREET JOURNAL ISTANBUL TURKEY IS LIKELY TO ALLOW THE CIRCULATION OF TURKISH LIRA IN IRAQI KURDISTAN REPLACING THE IRAQI DINAR IN A MOVE THAT COULD REDRAW THE POLITICAL MAP OF THE MIDDLE EAST ACCORDING TO SENIOR TURKISH AND KURDISH OFFICIALS AT THE REQUEST OF THE ECONOMICALLY SQUEEZED IRAQI KURDS AND WITH THE BACKING OF THE US BRITAIN AND FRANCE THE TURKISH MOVE COULD LEAD TO ECONOMIC INTEGRATION OF TURKEY WITH IRAQI KURDISTAN THE OFFICIALS AND WESTERN DIPLOMATS SAID ALTHOUGH FRAUGHT WITH DANGERS IT MAY EFFECTIVELY RESTORE TO TURKEY A PART OF THE FORMER OTTOMAN EMPIRE THAT ARABS ALWAYS BELIEVED TURKEY WOULD ATTEMPT TO REGAIN IT IS ALSO LIKELY TO BE REJECTED BY MANY ARABS AS A STEP TOWARD THE DISINTEGRATION OF IRAQ AS A NATIONSTATE THE KURDISH REQUEST FOLLOWED THE MAY 1 ORDER BY IRAQI PRESIDENT SADDAM HUSSEIN TO DEMONETIZE IRAQI 25DINAR NOTES IN A BID TO DEPRIVE THE KURDS OF THEIR PRINCIPAL MEANS OF COMMERCIAL EXCHANGE THE MEASURE HAS THROWN THE NORTHERN IRAQ REGION'S THREE MILLION KURDS INTO CONFUSION CANCELLATION OF THE DINAR NOTES IS THE LATEST IRAQI EFFORT TO TIGHTEN SADDAM HUSSEIN'S ECONOMIC BLOCKADE OF IRAQI KURDISTAN RELIEF WORKERS IN THE AREA IN RECENT WEEKS HAVE BEEN ATTACKED UNDER MYSTERIOUS CIRCUMSTANCES AT THE SAME TIME IRAQI FORCES CONTINUOUSLY TEST THE KURDS ALONG THE MILITARY DIVIDING LINE WITH KURDISTAN RESPONDING TO THE KURDISH REQUEST OFFICIALS FROM THE TURKISH FOREIGN MINISTRY AS WELL AS THE US BRITAIN FRANCE AND AUSTRALIA ARE SCHEDULED TO TRAVEL TO NORTHERN IRAQ EARLY THIS WEEK TO STUDY THE SITUATION ACCORDING TO TURKISH KURDISH AND WESTERN OFFICIALS VARIOUS COUNTRIES HAVE UNOFFICIALLY ASKED TURKEY TO INTRODUCE THE TURKISH LIRA IN NORTHERN IRAQ SAID TURKISH FOREIGN MINISTRY SPOKESMAN VOLKAN VURAL THE REQUEST WAS MADE BY THE KURDS AT A RECENT MEETING ATTENDED BY TURKISH BRITISH AND US OFFICIALS IN THE US EMBASSY IN ANKARA ACCORDING TO SAFIN DIZAYA THE REPRESENTATIVE IN TURKEY OF THE KURDISH DEMOCRATIC PARTY OR KDP ONE OF TWO KURDISH GUERRILLA GROUPS THAT CONTROL IRAQI KURDISTAN TURKISH TREASURY DEPARTMENT OFFICIALS FEAR THAT FORMAL INTRODUCTION OF THE LIRA INTO IRAQI KURDISTAN WOULD FORCE TURKEY TO INCREASE ITS MONEY SUPPLY THIS IN TURN THEY SAY WOULD FUEL INFLATION ALREADY GALLOPING AT AN ANNUAL RATE OF 60 BUT FINANCIAL EXPERTS ARGUE THAT THE MOVE WOULD HELP TURKEY INCREASE BADLY NEEDED FOREIGN DEMAND FOR THE LIRA THEY NOTE THAT THE LIRA IS THE OFFICIAL CURRENCY IN TURKISHOCCUPIED NORTHERN CYPRUS IT IS ALSO SMUGGLED INTO SYRIA AND LEBANON AND USED IN CROSSBORDER TRADE WITH THE TURKIC REPUBLICS OF THE FORMER SOVIET UNION WE DON'T SAY MUCH BECAUSE TO US THIS IS A POLITICAL DECISION AS FAR AS WE'RE CONCERNED IT IS UP TO THE GOVERNMENT TO DECIDE WHETHER OR NOT TO CIRCULATE TURKISH LIRE IN THAT COUNTRY BUT THERE WOULD BE NO SIGNIFICANT MACROECONOMIC IMPACT ON TURKEY BECAUSE IT'S TOO SMALL AN ECONOMY SAID ERCAN KUMCU VICE CHAIRMAN OF THE CENTRAL BANK WHO ESTIMATES THE TOTAL MONEY SUPPLY IN IRAQI KURDISTAN AT THE EQUIVALENT OF 50 MILLION IT MAKES NO DIFFERENCE TO TURKEY IF THE LIRA IS CIRCULATED IN NORTHERN IRAQ THEY HAVE NO CENTRAL BANK THAT CAN MANIPULATE THE LIRA AND WE AREN'T GOING TO PRINT MONEY FOR THEM TO NORTHERN IRAQ HOWEVER IT COULD MEAN TURKISH DOMINATION ADDED BULENT SEMILER MANAGING DIRECTOR OF IMPEXBANK STILL FINANCIAL ANALYSTS WARN THAT REPLACING THE DINAR WITH THE LIRA IN A REGION THAT IS LEGALLY PART OF IRAQ MAY PROVIDE OPPORTUNITIES TO CIRCUMVENT THE UNITED NATIONS ECONOMIC EMBARGO ON IRAQ THE TURKISH OPERATION MAY NOT BE SUSTAINABLE THERE WILL BE IRAQIS IN KURDISTAN AND IN THE SOUTH COLLECTING LIRE TO USE IT IN INTERNATIONAL TRADE ONE ANALYST SAID MORE IMPORTANT THAN THE ECONOMIC ADVANTAGES TO TURKEY ARE THE POSSIBLE POLITICAL GAINS IN A REGION THAT MANY TURKS HISTORICALLY VIEW AS TURKISH PREVENTING TURKISH KURDISH SEPARATISTS FROM OPERATING FROM IRAQI KURDISTAN IS ALSO OF VITAL IMPORTANCE TO TURKISH SECURITY KDP REPRESENTATIVE MR DIZAYA INSISTS THAT IRAQI KURDS CONTINUE TO SUPPORT THE TERRITORIAL INTEGRITY OF IRAQ A STATEMENT NECESSARY TO ALLEVIATE ARAB FEARS THAT AN INDEPENDENT KURDISH STATE WILL BE CARVED OUT OF NORTHERN IRAQ AND TO PREVENT SADDAM HUSSEIN FROM PORTRAYING THE TURKISH MOVE AS A BID TO BREAK UP IRAQ US BRITISH AND FRENCH WARPLANES OPERATING FROM TURKEY MAINTAIN A SAFE AREA FOR KURDS IN IRAQ NORTH OF THE 36TH PARALLEL PROTECTING THEM FROM IRAQI AIR ATTACKS THE KURDS THERE HAVE CREATED THEIR OWN POLITICAL INFRASTRUCTURE WITH A PARLIAMENT AND A GOVERNMENT 9305250020 930525 BANKRUPTCY JUDGE SEEKS TO END RIFT OVER UNIT OF O&Y BY LARRY M GREENBERG AND DAVE KANSAS STAFF REPORTERS OF THE WALL STREET JOURNAL A US BANKRUPTCYCOURT JUDGE IN NEW YORK SAID HE WILL APPOINT A MEDIATOR THIS WEEK TO INTERCEDE BETWEEN THE CREDITORS AND EQUITY HOLDERS OF OLYMPIA & YORK DEVELOPMENTS LTD'S US SUBSIDIARY IN AN ATTEMPT TO BREAK A VOLATILE IMPASSE BETWEEN THE TWO GROUPS THE MOVE AVERTS FOR NOW A POTENTIAL SHOWDOWN BETWEEN CREDITORS OF THE UNIT OLYMPIA & YORK COS USA AND THE CANADIAN ADMINISTRATOR FOR THE TORONTOBASED PARENT WHICH HOLDS THE US UNIT'S EQUITY CREDITORS WHO ARE OWED A TOTAL OF 53 BILLION HAD THREATENED TO FORCE OLYMPIA & YORK USA INTO CHAPTER 11 PROTECTION FROM CREDITORS IF SOME OF THE POWERS CURRENTLY HELD BY THE ADMINISTRATOR WEREN'T TRANSFERRED TO A TRUSTEE OR A COMPARABLE OFFICIAL IN THE US IN HIS RULING JUDGE JAMES GARRITY OF THE US BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK SAID I'M NOT PREPARED YET TO LIMIT THE ADMINISTRATOR'S RIGHTS HOWEVER THE JUDGE RESERVED THE RIGHT TO NAME A TRUSTEE TO SUPERVISE THE OLYMPIA & YORK US A RESTRUCTURING IF THE CREDITORS AND EQUITY HOLDERS CAN'T RESOLVE THEIR DIFFERENCES WITH THE HELP OF THE MEDIATOR THE MEDIATOR CALLED AN EXAMINER WILL BE CHOSEN BY TOMORROW BY THE OFFICE OF THE US TRUSTEE JUDGE GARRITY SET A HEARING FOR JUNE 10 TO REVIEW THE PROGRESS OF THE MEDIATOR'S EFFORTS OLYMPIA & YORK USA'S RESTRUCTURING NEGOTIATIONS HAVE BEEN IN LIMBO SINCE THE COMPANY'S BOARD WAS DISSOLVED IN MARCH WHEN OLYMPIA & YORK DEVELOPMENTS EMERGED FROM CANADIAN BANKRUPTCYCOURT PROTECTION THE MAJOR OBSTACLE THAT HAS PREVENTED A NEW BOARD FOR OLYMPIA & YORK USA FROM BEING APPOINTED WAS THE INSISTENCE BY THE CREDITORS THAT THE NEW GOVERNING BODY BE FULLY INDEPENDENT HOWEVER THIS AIM WAS COMPROMISED CREDITORS HAVE SAID BY THE CANADIAN ADMINISTRATOR'S DETERMINATION TO RETAIN THE RIGHT TO HIRE AND FIRE THE US UNIT'S DIRECTORS THERE ALREADY IS WIDESPREAD AGREEMENT THAT THE NEW OLYMPIA & YORK USA BOARD WILL HAVE SEVEN DIRECTORS INCLUDING THREE INDEPENDENT BUSINESSMEN FROM THE US AND TWO INDEPENDENTS FROM CANADA ALSO TO SIT ON THE BOARD WILL BE JOHN ZUCCOTTI OLYMPIA & YORK USA'S PRESIDENT AND THE ADMINISTRATOR ROBERT LOWE OF THE TORONTO OFFICE OF ACCOUNTING FIRM COOPERS & LYBRAND THE JUDGE'S RULING CAME IN RESPONSE TO A MOTION BY CITICORP'S CITIBANK UNIT A MAJOR OLYMPIA & YORK USA CREDITOR SEEKING THE APPOINTMENT OF AN OFFICER TO TAKE CHARGE OF THE INSOLVENT REALESTATE CONCERN A LAWYER FOR CITIBANK SAID AFTER THE RULING THAT THE BANK WAS WILLING TO NEGOTIATE FURTHER WITH THE ADMINISTRATOR WE'LL TRY TO TAKE ONE LAST STAB AT IT PETER CURRIE A PARTNER WITH THE ADMINISTRATOR SAID WE'RE CERTAINLY PLEASED WITH THE DECISION WE LOOK FORWARD TO WORKING WITH OLYMPIA & YORK USA MANAGEMENT TO ACHIEVE A CONSENSUAL RESTRUCTURING THE NAMING OF A NEW BOARD FOR OLYMPIA & YORK USA ESSENTIALLY WOULD PUT THE NEGOTIATIONS TO RESTRUCTURE THE US COMPANY'S DEBT BACK ON TRACK CREDITORS SAY THAT SIGNIFICANT PROGRESS ALREADY HAS BEEN MADE IN THE RESTRUCTURING NEGOTIATIONS WHICH THEY ATTRIBUTE IN PART TO THE DETERMINATION OF OLYMPIA & YORK USA'S MANAGEMENT LED BY MR ZUCCOTTI TO MAINTAIN THE US UNIT'S INDEPENDENCE FROM THE CANADIAN PARENT ALTHOUGH OLYMPIA & YORK USA HASN'T FILED FOR BANKRUPTCYCOURT PROTECTION IN THE US SEVERAL HOLDING COMPANIES OF OLYMPIA & YORK DEVELOPMENTS THROUGH WHICH IT HOLDS THE US SUBSIDIARY ARE IN CHAPTER 11 THE COURT RULING WAS MADE AS PART OF THESE CASES VIRTUALLY ALL THE PARTIES INVOLVED IN THE OLYMPIA & YORK USA RESTRUCTURING ARE EAGER TO COMPLETE THE PROCESS OUTSIDE OF BANKRUPTCYCOURT PROTECTION A CHAPTER 11 FILING PARTICIPANTS FEAR WOULD GREATLY COMPLICATE THE DAYTODAY OPERATIONS OF MANAGING OLYMPIA & YORK USA'S PROPERTY PORTFOLIO CONSISTING OF SOME 20 MILLION SQUARE FEET OF OFFICE SPACE CONCENTRATED MAINLY IN NEW YORK ALSO THE UNCERTAINTY CREATED BY THE COURT PROCEEDINGS COULD BE EXPECTED TO ERODE THE VALUE OF THE COMPANY'S PROPERTY ASSETS 9305250019 930525 WHO'S NEWS MEDIMMUNE ELECTS TWO OF ITS EXECUTIVES CHAIRMAN PRESIDENT GAITHERSBURG MD MEDIMMUNE INC SAID MICHAEL D KISHBAUCH WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AND WAYNE HOCKMEYER WHO WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER BECAME CHAIRMAN AND CHIEF EXECUTIVE THE CHAIRMANSHIP AND THE POST OF CHIEF OPERATING OFFICER ARE NEWLY CREATED THE ELECTION OF MR KISHBAUCH 44 YEARS OLD TO THE BOARD INCREASES IT TO SIX MEMBERS DR HOCKMEYER 48 FOUNDED MEDIMMUNE A DEVELOPER OF THERAPEUTICS AND VACCINES FOR INFECTIOUS DISEASES IN 1988 AFTER SERVING AS VICE PRESIDENT OF RESEARCH AND DEVELOPMENT AT PRAXIS BIOLOGICS NOW A UNIT OF AMERICAN CYANAMID CO MR KISHBAUCH JOINED MEDIMMUNE IN DECEMBER 1992 AS EXECUTIVE VICE PRESIDENT PRIOR TO THAT HE SPENT 10 YEARS WITH CIBAGEIGY INTERNATIONAL IN PLANNING MARKETING AND PRODUCT MANAGEMENT THERE HE HELPED LEAD THE MARKETING OF THAT COMPANY'S HABITROL NICOTINE PATCH AND VOLATREN AN ANTIARTHRITIC MEDIMMUNE OFFICIALS SAID AS PRESIDENT AND CHIEF OPERATING OFFICER AT MEDIMMUNE MR KISHBAUCH WILL BE RESPONSIBLE FOR SALES AND MARKETING MANUFACTURING REGULATORY AFFAIRS AND QUALITY ASSURANCE WHILE RESEARCH AND DEVELOPMENT ACTIVITIES WILL CONTINUE TO BE FOCUSED ON INFECTIOUS DISEASES AND OVER THE LONGER TERM CANCERS DR HOCKMEYER SAID HE ALSO WILL EVALUATE THE POSSIBILITY OF LICENSING PRODUCTS FROM OTHER MANUFACTURERS FOR SALE BY MEDIMMUNE'S 15PERSON SALES FORCE MEDIMMUNE BEGAN ASSEMBLING THAT SALES FORCE LATE LAST YEAR TO HANDLE SALES OF THE COMPANY'S FIRST PRODUCT CYTOGAM WHICH IS USED TO PREVENT CYTOMEGALOVIRUS DISEASE IN KIDNEYTRANSPLANT PATIENTS LAUNCHED IN 1991 THE PRODUCT WAS SOLD THROUGH A DISTRIBUTOR DURING ITS FIRST TWO YEARS ON THE MARKET 9305250018 930525 ENTERPRISE CLINTON HEALTH PLAN HURTS BIOTECH FIRMS BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL IF UNCERTAINTY ABOUT PRESIDENT CLINTON'S HEALTHCARE PLAN IS DENTING BIG DRUG COMPANIES' STOCKS IT IS HELPING TO WREAK HAVOC AT SMALL BIOTECHNOLOGY COMPANIES EVER SINCE THE ADMINISTRATION STARTED TALKING ABOUT HEALTHCARE CHANGES THE FEAR OF PRICE AND COST CONTROLS HAS HURT THE BIOTECH BUSINESS ON WALL STREET STOCK PRICES OF BIOTECH COMPANIES HAVE PLUMMETED FINANCING HAS DRIED UP AND PLANS FOR EXPANSION INCLUDING HIRING NEW CONSTRUCTION AND NEW PROJECTS HAVE BEEN PUT ON HOLD THE ENTIRE BIOTECHNOLOGY INDUSTRY IS UNDER A CLOUD BUT SMALL BIOTECHNOLOGY COMPANIES ARE THE HARDEST HIT WITH NO PRODUCTS AND NO REVENUE THEY NEED STEADY ACCESS TO THE CAPITAL MARKETS THE DROUGHT THEY NOW FACE THREATENS THEIR PLANS FOR RESEARCH AND COMMERCIALIZATION AND FOR SOME THEIR VERY EXISTENCE OF COURSE THE INDUSTRY HASN'T HELPED ITS OWN CAUSE PROBLEMS WITH SOME HIGHLY PUBLICIZED DRUGS AND THE INDUSTRY'S INABILITY TO COME UP WITH NEW BLOCKBUSTERS HAVE TARNISHED ITS IMAGE AND A SLEW OF METOO COMPANIES BACKED BY VENTURE CAPITALISTS HAVE FURTHER CLOUDED THE COMPETITIVE PICTURE INITIAL PUBLIC OFFERINGS IN THE FIRST FOUR MONTHS OF THIS YEAR FELL 63 FROM THE 1992 PERIOD TO 1197 MILLION ACCORDING TO IN VIVO A NORWALK CONN INDUSTRY NEWSLETTER MORE THAN A DOZEN COMPANIES INCLUDING TRIPLEX PHARMACEUTICAL CORP GENPHARM INTERNATIONAL INC AND TANOX BIOSYSTEMS INC HAVE PUT THEIR STOCK OFFERINGS ON HOLD OTHERS SUCH AS VIAGENE INC WHICH HAD POSTPONED PREVIOUS OFFERINGS FOLLOWING OTHER INDUSTRY SETBACKS HAVE SIMPLY CANCELED PUBLIC FINANCING PLANS ALTOGETHER THERE'S NO QUESTION IN MY MIND THAT THE HILLARY EFFECT HAS PUT A NAIL IN THE COFFIN ON OUR ABILITY TO RAISE MONEY SAYS ROBERT ABBOTT CHIEF EXECUTIVE OFFICER OF VIAGENE IN SAN DIEGO REFERRING TO THE FIRST LADY'S ROLE AS HEAD OF THE CLINTON ADMINISTRATION'S HEALTHCARE TASK FORCE RELATIVELY MORE MATURE COMPANIES HAVE FARED LITTLE BETTER SECONDARY STOCK OFFERINGS DECLINED 11 TO 2457 MILLION BUT THE BIGGEST CASUALTY WAS A PACKAGE OF CONVERTIBLE DEBT THAT HAD BEEN EXPECTED TO BRING MORE THAN 200 MILLION INTO THE COFFERS OF SEVEN SMALL COMPANIES INCLUDING CELTRIX PHARMACEUTICALS INC CYTOTHERAPEUTICS INC LIPOSOME TECHNOLOGY INC NEUROGEN CORP AND REPLIGEN CORP THE UNCERTAINTY AND SPECULATION SURROUNDING PRICE CONTROLS KILLED THE BIOBUNDLE WE HIT THE MARKET AT THE WRONG TIME SAYS MISHA PETKEVICH A MANAGING DIRECTOR AT ROBERTSON STEPHENS & CO THE SAN FRANCISCO INVESTMENT BANK THAT PUT TOGETHER THE CONVERTIBLE DEBT PACKAGE STRATEGIC ALLIANCES WITH BIG COMPANIES HAVE ALSO BEEN AFFECTED SUCH PARTNERSHIPS A SOURCE OF CAPITAL AND RESOURCES SUCH AS TECHNOLOGY AND MARKETING FOR SMALLER COMPANIES DROPPED TO 19 IN THE FIRST FOUR MONTHS OF THIS YEAR FROM 26 A YEAR EARLIER SAYS IN VIVO THE LARGE COMPANIES ARE HUNKERING DOWN BECAUSE OF THE UNCERTAINTY THEY WANT TO KNOW WHAT'S GOING TO HAPPEN TO THE OVERALL ENVIRONMENT BEFORE THEY DO MORE OUTSIDE COLLABORATIONS SAYS RON HENRICKSEN CHIEF EXECUTIVE OF KHEPRI PHARMACEUTICALS INC ALAMEDA CALIF AND FORMER HEAD OF US BUSINESS DEVELOPMENT AT ELI LILLY & CO INVESTORS ALREADY HAVE BEEN DISAPPOINTED BY THE POOR CLINICAL RESULTS OF SOME HIGHPROFILE COMPANIES SUCH AS SYNERGEN CENTOCOR AND US BIOSCIENCE SAYS ROGER LONGMAN EDITOR OF IN VIVO NOW A HOST OF DISPARATE AND CONFUSING REFORM PROPOSALS RANGING FROM PRICE CONTROLS TO A NATIONAL LIST OF REIMBURSABLE DRUGS HAS THROWN THEM FOR A LOOP THE BIGGEST CONCERN IS PRICE CONTROLS FOR NEW PRODUCTS SAYS JOHN KAWESKE A DENVER MANAGER OF GLOBAL HEALTH SCIENCES FUND AND FINANCIAL STRATEGIC HEALTH SCIENCES PORTFOLIO IF PRICE CONTROLS ARE PUT IN PLACE YOU WILL NOT SEE ANY FURTHER FINANCING OF THESE BIOTECH COMPANIES THE FOOD AND DRUG ADMINISTRATION IS ALSO CONTRIBUTING TO THE INDUSTRY'S QUANDARY THE BIG FDA SIGNALS ARE THAT THE THRESHOLD FOR APPROVAL HAS CHANGED FROM SAFETY AND EFFICACY TO SAFETY EFFICACY AND COST EFFECTIVENESS SAYS STEVEN BURRILL HEAD OF ERNST & YOUNG'S INTERNATIONAL HIGH TECHNOLOGY PRACTICE FOR MOST YOUNG COMPANIES UNFAMILIAR WITH THE REGULATORY PROCESS THE CONFUSION ONLY ADDS TO THE ALREADY PROHIBITIVELY EXPENSIVE COST OF CLINICAL TRIALS HE ADDS BUT AT VIAGENE WHICH IN MARCH ABANDONED ITS 30 MILLION INITIAL PUBLIC OFFERING THE IMPLICATION IS CLEAR THE COMPANY HAS FROZEN HIRING AND DRASTICALLY SLOWED ITS PLANS FOR DEVELOPMENT AND DIVERSIFICATION THE COMPANY FILED TO GO PUBLIC ON APRIL 15 1992 THE SAME DAY THAT CENTOCOR'S ANNOUNCEMENT OF PROBLEMS WITH ITS SEPTICSHOCK DRUG SENT THE ENTIRE BIOTECH MARKET INTO A FREEFALL VIAGENE TRIED AGAIN TO RAISE MONEY IN JANUARY JUST WEEKS BEFORE SYNERGEN ANNOUNCED THAT ITS SEPTICSHOCK DRUG ANTRIL PERFORMED POORLY IN CLINICAL TESTS THE COMPANY KEPT ITS OFFERING ON THE BACKBURNER HOPING THAT NEWS AND MARKET CONDITIONS WOULD IMPROVE BUT IN MARCH I RELUCTANTLY TERMINATED VIAGENE'S EFFORTS TO RAISE CAPITAL THROUGH A PUBLIC OFFERING DR ABBOTT WROTE US REP PETE STARK A CALIFORNIA DEMOCRAT AS A RESULT INSTEAD OF ACCELERATED TESTING OR DIVERSIFYING TO OTHER DISEASES VIAGENE IS CUTTING BACK ON ITS CLINICAL TRIALS IN ITS FIRST STUDY IT WILL WORK WITH ONLY FOUR PATIENTS INSTEAD OF 12 IT WILL ALSO CUT OUT A QUICK PEEK TEST THAT HELPS ASCERTAIN THE POTENTIAL IMPACT OF THE CLINICAL TRIALS THE REVISED STRATEGY WILL REDUCE COSTS BUT IT WILL ALSO ADD SIX MONTHS TO THE TRIALS VIAGENE HAS ALSO STOPPED HIRING BETWEEN JANUARY 1991 AND OCTOBER 1992 THE COMPANY INCREASED ITS STAFF TO 107 FROM 40 BUT NOW WITH ONLY ABOUT 8 MILLION LEFT IT WANTS TO CONSERVE THAT CASH THE COMPANY IS DISCOVERING THAT THERE IS NO US CORPORATE INTEREST IN ITS ACTIVITIES A MAJOR US VACCINE PRODUCER CUT OFF TALKS ABOUT A PRODUCTDEVELOPMENT ALLIANCE BECAUSE OF THE FISCAL UNCERTAINTY ASSOCIATED WITH PRESIDENT CLINTON'S REFORM SAYS DR ABBOTT VIAGENE STILL HAS FIVE COLLABORATION CANDIDATES BUT THREE ARE JAPANESE PHARMACEUTICAL COMPANIES AND THE OTHER TWO ARE GERMAN OTHER COMPANIES ARE ALSO SCRAMBLING FOR NEW PARTNERS TO MAKE UP FOR THE PAUCITY OF PUBLIC CAPITAL VERTEX PHARMACEUTICALS INC LAST MONTH SIGNED A COLLABORATION AGREEMENT WITH JAPAN'S KISSEI PHARMACEUTICAL CO TO DEVELOP THE CAMBRIDGE COMPANY'S ANTIAIDS COMPOUNDS AS PART OF THE DEAL KISSEI WILL INVEST 20 MILLION IN VERTEX'S HIV PROGRAM ANOTHER CAMBRIDGE MASS BIOTECH COMPANY PROCEPT INC WAS COUNTING HEAVILY ON A 20 MILLION INITIAL PUBLIC OFFERING TO FINANCE CLINICAL TESTS FOR ITS AIDS THERAPEUTIC DRUG BUT IT HAS HAD TO PUT OFF THE OFFERING SAYS STANLEY ERCK CHIEF EXECUTIVE OFFICER NOW IT IS SCRAMBLING TO PUT TOGETHER AN 11 MILLION PRIVATE FINANCING TO STAY ON COURSE BUT EVEN THESE PRIVATE EQUITY MARKETS TRADITIONALLY LESS SENSITIVE TO INDUSTRY UPHEAVAL HAVE BECOME WARY MR KAWESKE FOR EXAMPLE INVESTED 1 MILLION IN INCYTE PHARMACEUTICALS A PALO ALTO CALIF STARTUP AT A PRICE AT LEAST 50 LOWER THAN SIX TO 12 MONTHS AGO OTHER VENTURE INVESTORS SIMPLY WON'T INVEST WE'RE REJECTING DEALS THAT THREE OR FOUR YEARS AGO WE WOULD VERY SERIOUSLY CONSIDER SAYS BARRY WEINBERG MANAGING PARTNER OF CW VENTURES A NEW YORK VENTURECAPITAL FIRM NO MORE STARTUPS WITH PRODUCTS THAT ARE ONLY INCREMENTALLY DIFFERENT FROM OTHERS HE SAYS FOR COMPANIES THAT DON'T OFFER COSTEFFECTIVE SOLUTIONS THERE SIMPLY ISN'T ANY MONEY 9305250017 930525 WHO'S NEWS MILLER WILL SUCCEED JACOBS AS CHAIRMAN AND CHIEF OF SAKS NEW YORK SAKS FIFTH AVENUE SAID PHILIP B MILLER WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE SUCCEEDING MELVIN JACOBS WHO WILL RETIRE JUNE 30 MR MILLER 54 YEARS OLD IS CURRENTLY VICE CHAIRMAN AND CHIEF OPERATING OFFICER EXPLAINING HIS DECISION TO RETIRE MR JACOBS 66 SAID THE SUCCESS OF NEW MARKETING STRATEGIES MAKES THIS AN APPROPRIATE TIME FOR ME TO TURN OVER THE REINS THE COMPANY OWNED BY THE BAHRAIN INVESTMENT GROUP INVESTCORP RECENTLY INITIATED SEVERAL LUCRATIVE STRATEGIES A REPRESENTATIVE SAID THEY INCLUDE OPENING NEW STORES IN RESORT TOWNS AND A CHAIN OF STORES SELLING LARGER SIZES FOR WOMEN THE COMPANY ALSO SIGNED EXCLUSIVE AGREEMENTS TO SELL CERTAIN DESIGNERS' LINES MR MILLER SAID THAT HE PLANS TO DOUBLE SAKS'S STORES TO 110 BY THE END OF 1995 AND THAT THE COMPANY IS EXPLORING OVERSEAS EXPANSION THE COMPANY'S LATEST MARKETING SUCCESS WAS A SELLOUT OF A WOMENSWEAR LINE ON THE CABLE SHOPPING CHANNEL QVC SAKS SAID GROSS ORDERS FOR THE REAL CLOTHES COLLECTION TOTALED ABOUT 570000 FOR THE ONEHOUR PROGRAM THAT RAN SATURDAY QVC WILL BROADCAST THREE MORE SAKS SHOWS THE NEW PARTNERSHIP WITH QVC IS CLEARLY A SUCCESS WITH OUR CUSTOMERS MR MILLER SAID WE GREATLY EXCEEDED OUR EXPECTATIONS SAKS SAID ITS SENIOR MANAGEMENT COUNCIL THE FOURMEMBER OFFICE OF THE PRINCIPALS HAS NAMED BRIAN KENDRICK CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT AS A NEW MEMBER MR KENDRICK 39 WILL WORK WITH MR MILLER GARY M WITKIN AND ROSE MARIE BRAVO MR KENDRICK SUCCEEDS FORMER VICE CHAIRMAN ARTHUR MARTINEZ WHO LEFT SAKS TO JOIN SEARS ROEBUCK & CO MR WITKIN 44 IS VICE CHAIRMAN AND MS BRAVO 42 IS THE COMPANY'S PRESIDENT 9305250016 930525 CLINTON IS SET TO RENEW TRADE STATUS OF CHINA BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS LIKELY TO ANNOUNCE THIS WEEK THAT HE WILL RENEW CHINA'S TRADE STATUS FOR A YEAR BUT ATTACH CONDITIONS ON HUMAN RIGHTS AND CALL ON BEIJING TO LIVE UP TO ITS COMMITMENTS IN THE AREAS OF TRADE AND ARMS PROLIFERATION THE WHITE HOUSE RECEIVED RECOMMENDATIONS FROM VARIOUS GOVERNMENT AGENCIES OVER THE WEEKEND AND US OFFICIALS SAID THERE WAS OVERALL AGREEMENT ON THIS APPROACH BUT ONE OFFICIAL NOTING THAT CLINTON ADMINISTRATION OFFICIALS BEGAN CONSULTING WITH CONGRESS YESTERDAY AND WILL CONTINUE DISCUSSIONS TODAY EMPHASIZED THAT THESE SESSIONS COULD LEAD TO SOME CHANGES IN THE OVERALL APPROACH AN OVERRIDING INCLINATION IS TO COME TO AN AGREEMENT WITH CONGRESS THE OFFICIAL SAID BY LAW THE PRESIDENT MUST DECIDE BY JUNE 3 ON HOW TO TREAT CHINA'S MOST FAVORED NATION TRADE STATUS WHICH GIVES A NATION THE SAME TARIFF LEVELS AND PRIVILEGES ENJOYED BY MOST US TRADING PARTNERS US OFFICIALS SAID THAT MR CLINTON IS INCLINED TO SET SPECIFIC TESTS THAT CHINA MUST MEET IN THE AREA OF HUMAN RIGHTS HE ALSO IS EXPECTED TO TELL BEIJING THE US WILL BE WATCHING TO SEE IF IT HONORS INTERNATIONAL TREATIES AND AGREEMENTS WITH THE US ON TRADE AND NONPROLIFERATION FAILURE TO MEET THOSE CONDITIONS WOULD JEOPARDIZE CHINA'S STATUS NEXT YEAR MR CLINTON COULD ENCOUNTER SOME PROBLEMS ON CAPITOL HILL IF THE CONDITIONS HE SETS ARE SEEN AS TOO LENIENT AN OFFICIAL CONCEDED THE HOUSE AND SENATE HAVE INTRODUCED BILLS THAT WOULD RENEW THE TRADE STATUS FOR ONE YEAR BUT THAT WOULD REQUIRE SIGNIFICANT PROGRESS IN HUMAN RIGHTS TRADE AND NONPROLIFERATION IN ORDER FOR IT TO BE EXTENDED NEXT YEAR THE APPROACH MR CLINTON IS LEANING TOWARD WOULD SET SPECIFIC GOALS ONLY FOR HUMAN RIGHTS IN THE OTHER TWO AREAS CHINA WOULD ONLY HAVE TO MEET STANDARDS IT ALREADY HAS AGREED TO IN CONSIDERING THE TRADE STATUS MR CLINTON IS TRYING TO BALANCE HIS CAMPAIGN COMMITMENTS TO HUMAN RIGHTS FAIR TRADE AND NONPROLIFERATION AGAINST HIS DESIRE TO MAINTAIN BUSINESS TIES WITH CHINA WHICH HAS THE WORLD'S FASTESTGROWING ECONOMY BEIJING HAS THREATENED TO RETALIATE AGAINST US COMPANIES IF ITS STATUS IS REVOKED IN THE AREA OF HUMAN RIGHTS MR CLINTON IS LIKELY TO CALL ON CHINA TO GIVE A FULL ACCOUNTING OF POLITICAL PRISONERS ARRESTED AFTER PRODEMOCRACY DEMONSTRATIONS IN BEIJING'S TIANANMEN SQUARE IN 1989 AND TO FREE A SUBSTANTIAL NUMBER OF THOSE PRISONERS PROVIDE SOME ACCESS TO PRISONS TO INTERNATIONAL HUMANITARIAN ORGANIZATIONS SUCH AS THE RED CROSS AND IMPROVE CHINA'S HUMAN RIGHTS BEHAVIOR IN TIBET CHINA ALREADY HAS SIGNED THREE TRADE AGREEMENTS WITH THE US THESE INCLUDE PROTECTING INTELLECTUAL PROPERTY RIGHTS PROHIBITING THE SHIPMENT TO THE US OF GOODS MADE WITH PRISON LABOR AND ELIMINATING 70 TO 80 OF CHINA'S NONTARIFF BARRIERS TO IMPORTS OVER FIVE YEARS IN THE WEAPONS NONPROLIFERATION AREA CHINA HAS SIGNED THE NUCLEAR NONPROLIFERATION TREATY AGREEING TO NOT TRANSFER NUCLEAR WEAPONS TO NONNUCLEAR STATES AND HAS AGREED TO ADHERE TO THE MISSILE TECHNOLOGY CONTROL REGIME WHICH LIMITS THE SPREAD OF WEAPONS OF MASS DESTRUCTION SUCH AS CERTAIN MISSILES IT ALSO HAS AGREED TO INTERNATIONAL ACCORDS ON CHEMICAL WEAPONS AND BIOLOGICAL WEAPONS HOWEVER CHINA'S RECORD IN HONORING THESE ACCORDS HAS BEEN INCONSISTENT RECENTLY SEVERAL MEMBERS OF CONGRESS CHARGED THAT BEIJING CONTINUES TO SHIP PRISONERMADE GOODS TO THE US AND CHINA IS BELIEVED TO HAVE SOLD MISSILE SYSTEMS TO PAKISTAN IN CONSULTATION OVER THE NEXT TWO DAYS LAWMAKERS MAY INSIST THAT CHINA MEET EVEN MORE STRINGENT CONDITIONS ON TRADE AND NONPROLIFERATION 9305250015 930525 IBM WILL OFFER PREFERRED STOCK FOR THE FIRST TIME BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP SAID IT WILL OFFER ITS FIRST PREFERRED STOCK EVER A 750 MILLION ISSUE AS PART OF A PLAN TO SELL UP TO 3 BILLION OF LONGTERM DEBT AND PREFERRED STOCK DURING THE NEXT NINE TO 12 MONTHS IN A STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IBM SAID IT WILL USE PROCEEDS FROM THE PREFERRED STOCK AND DEBT OFFERINGS FOR A VARIETY OF GENERAL CORPORATE PURPOSES IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE IBM STOCK WAS QUOTED AT 4975 UP 1375 A COMPANY SPOKESMAN SAID THE OFFERING COULD GIVE IBM FLEXIBILITY IF MORE EMPLOYEES THAN ALREADY PLANNED FOR DECIDE TO EXERCISE ONGOING BUYOUT OFFERS IBM HAS NUMEROUS BUYOUT PLANS UNDER WAY THROUGHOUT THE COMPANY AND IT EXPECTS THAT MORE THAN 25000 THE FIGURE ORIGINALLY ANNOUNCED TO COVER THOSE WHO WILL LEAVE THE COMPANY WILL DEPART THROUGH RETIREMENTS LAYOFFS AND BUYOUTS IN ANTICIPATION OF THE REDUCTION COSTS IBM TOOK 31 BILLION IN PRETAX CHARGES IN THE FOURTH QUARTER LAST YEAR OFFICIALS SAID THEY DON'T KNOW IF THE ARMONK NY COMPUTER MANUFACTURER WILL HAVE TO TAKE MORE CHARGES THE SPOKESMAN SAID THE OFFER IS TIMED TO TAKE ADVANTAGE OF LOW LONGTERM INTEREST RATES THOUGH IBM'S BALANCE SHEET IS STRONG THE SPOKESMAN SAID THE EQUITY RAISED BY THE OFFERING WILL JUST ADD THAT MUCH MORE WENDY ABRAMOWITZ AN IBM ANALYST AT ARGUS RESEARCH SAID SHE HAD BEEN EXPECTING SOMETHING LIKE THIS AND THUS WASN'T TERRIBLY SURPRISED BY IBM'S DECISION TO RAISE CASH NOW AT THE END OF 1992 IBM HAD 276 BILLION IN STOCKHOLDERS' EQUITY SHAREHOLDERS APPROVED THE COMPANY'S RIGHT TO OFFER PREFERRED STOCK IN APRIL 1992 9305250014 930525 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS MAY 25JUNE 7 THE MOST EXTENSIVE EXHIBITION OF MODERN LATIN AMERICAN ART EVER ASSEMBLED INCLUDES MORE THAN 300 PAINTINGS SCULPTURES AND INSTALLATIONS BY MORE THAN 90 ARTISTS MANY OF WHOM HAVE NEVER BEFORE BEEN SHOWN INTERNATIONALLY THE ARTISTS RANGE FROM EARLY MODERNISTS SUCH AS DIEGO RIVERA TO CONTEMPORARY ARTISTS SUCH AS FERNANDO BOTERO FRIDA KAHLO AND WIFREDO LAM MUSEUM OF MODERN ART 11 W 53RD ST JUNE 6 THROUGH SEPT 7 THE UMBRELLA AS AN ART MOTIF AND AN EMBLEM OF JAPAN IS EXPLORED IN THIS SHOW OF ABOUT 140 OBJECTS DATING FROM THE 17TH THROUGH 20TH CENTURIES ON VIEW IN ADDITION TO THE UMBRELLAS THEMSELVES FROM SOME RARE EARLY19THCENTURY EXAMPLES TO CONTEMPORARY UMBRELLAS ARE PAINTINGS PRINTS ILLUSTRATED BOOKS PERIOD PHOTOGRAPHS TEXTILES NETSUKE CERAMICS AND SILVER USA HIGHLIGHTS OF THE 17TH ANNUAL FESTIVAL INCLUDE THE WORLD PREMIERE OF THE OPERA THE SINGING CHILD BY FESTIVAL FOUNDER AND ARTISTIC DIRECTOR GIAN CARLO MENOTTI MARTHA GRAHAM DANCE COMPANY WITH THE CHARLESTONINSPIRED MAPLE LEAF RAG THE US PREMIERE OF ALEXANDER VON ZEMLINSKY'S 1922 ONEACT OPERA THE BIRTHDAY OF THE INFANTA A SHOW OF MORE THAN 100 DRAWINGS BY KLIMT MANY OF WHICH HAVE NEVER BEFORE BEEN SHOWN IN THE US AND A FIREWORKSFILLED FINALE WITH THE COUNT BASIE ORCHESTRA VARIOUS VENUES AROUND THE CITY MAY 28JUNE 13 18002554659 NOW IN ITS 12TH SEASON THE FESTIVAL PRESENTS 16 CONCERTS OVER FOUR WEEKS HIGHLIGHTS INCLUDE THE LARK QUARTET AND THE NEW JERSEY CHAMBER MUSIC SOCIETY JUNE 36 THE MANHATTAN STRING QUARTET AND FIDELIO JUNE 1013 THE AMADEUS TRIO AND VOICES OF CHANGE JUNE 1720 THE BOSTON CHAMBER MUSIC SOCIETY AND FIGARO TRIO JUNE 2427 SPECIAL CONCERTS INCLUDE CELEBRATIONS OF OPERA JUNE 5 PARIS JUNE 20 VIENNA JUNE 12 AND GYPSY MUSIC JUNE 27 THE WORLDPREMIERE RUN OF PHILIP GLASS'S OPERA ORPHEE BASED ON JEAN COCTEAU'S 1949 FILM OF THE SAME NAME WHICH PLACES THE ORPHEUS MYTH IN MODERN FRENCH CONTEXT FRANCESCA ZAMBELLO DIRECTS AND SETS ARE BY ROBERT ISRAEL THE PRODUCTION WHICH RUNS IN REPERTORY WITH PETER FEIBLEMAN'S CAKEWALK IS PART OF CROSSCURRENTS A MULTIYEAR INITIATIVE OF THE ART AND PHILADELPHIA'S AMERICAN MUSIC THEATER DESIGNED TO CREATE AND SUSTAIN A BODY OF NEW MUSICTHEATER WORKS THE CAST INCLUDES EUGENE PERRY AND LEROY VILLANUEVA ALTERNATING IN THE TITLE ROLE AND ELIZABETH FUTRAL AND LYNN TORGOVE AS EURYDICE MARTIN GOLDRAY CONDUCTS SFO'S CELEBRATION OF RICHARD STRAUSS FEATURES PERFORMANCES OF FOUR OF HIS OPERAS THE PETER HALL PRODUCTION OF SALOME IS DIRECTED BY JEANNETTE ASTER AND STARS MARIA EWING IN THE TITLE ROLE AND LEONIE RYSANEK AS HERODIAS JUNE 4 10 13 MATINEE 16 19 AND 26 FOR THE NEW LOTFI MANSOURI PRODUCTION OF DER ROSENKAVALIER DESIGNER THIERRY BOSQUET WILL RECREATE THE CELEBRATED SETS DESIGNED BY ALFRED ROLLER FOR THE WORK'S WORLD PREMIERE IN 1911 FELICITY LOTT AS THE MARSCHALLIN AND FREDERICA VON STADE AS OCTAVIAN LEAD THE CAST JUNE 5 8 11 18 23 AND 27 MATINEE KIRI TE KANAWA IS THE COUNTESS AND TATIANA TROYANOS IS CLAIRON IN THE COMPANY'S REVIVAL OF ITS ACCLAIMED 1990 PRODUCTION OF CAPRICCIO WITH UPDATED COSTUMES BY GIANNI VERSACE JUNE 12 17 20 MATINEE 25 28 AND JULY 1 SANDRA BERNHARD DIRECTS DAPHNE WITH JANICE WATSON MAKING HER AMERICAN DEBUT IN THE TITLE ROLE JUNE 30 AND JULY 2 9305250013 930524 INTERNATIONAL BRIEF NINTENDO LTD PRETAX EARNINGS RISE 28 AT HOME VIDEO GAME FIRM NINTENDO LTD JAPAN'S LARGEST MAKER OF HOME VIDEO GAMES SAID CONSOLIDATED PRETAX PROFIT INCHED UP 28 TO 16623 BILLION YEN 15 BILLION IN THE YEAR ENDED MARCH 31 FROM THE YEAR EARLIER NINTENDO SAID THAT IN SPITE OF WEAK ECONOMIES AT HOME AND IN EUROPE EARNINGS INCREASED ON THE BACK OF SOLID DEMAND FOR ITS 16BIT SUPER NINTENDO ENTERTAINMENT SYSTEM OR SUPER NES OVERSEAS AND FOR RELATED SOFTWARE THE COMPANY SAID THAT IN THE CURRENT YEAR EXPECTED CONTINUED SLUGGISHNESS IN THE JAPANESE AND EUROPEAN ECONOMIES AND STRENGTHENING OF THE YEN AGAINST MAJOR CURRENCIES MEAN BUSINESS CONDITIONS WILL REMAIN SEVERE THE CONSOLIDATED EARNINGS STATEMENT COVERED NINTENDO OF AMERICA INC NINTENDO OF EUROPE GMBH AND FOUR OTHER SUBSIDIARIES 9305250012 930525 WHAT'S NEWS WORLDWIDE CLINTON IS EXPECTED TO RENEW CHINA'S TRADE STATUS WITH CONDITIONS THE PRESIDENT IS LIKELY TO ANNOUNCE THIS WEEK THAT HE WILL RENEW BEIJING'S TRADE STATUS FOR A YEAR BUT ATTACH CONDITIONS ON HUMAN RIGHTS AND CALL ON CHINA TO LIVE UP TO ITS COMMITMENTS IN THE AREAS OF TRADE AND ARMS PROLIFERATION AFTER THE WHITE HOUSE RECEIVED RECOMMENDATIONS FROM GOVERNMENT AGENCIES OVER THE WEEKEND OFFICIALS SAID THERE WAS OVERALL AGREEMENT ON THIS APPROACH CLINTON COULD ENCOUNTER PROBLEMS ON CAPITOL HILL IF THE CONDITIONS HE SETS FOR CHINA ARE SEEN AS TOO LENIENT ADMINISTRATION OFFICIALS PLAN TO HOLD MEETINGS WITH LAWMAKERS TODAY AND TOMORROW FIFTYONE ISLAMIC NATIONS DENOUNCED A PLAN PUT FORTH BY THE US RUSSIA AND WESTERN EUROPE THAT DROPS SERIOUS THREATS OF MILITARY INTERVENTION IN BOSNIA IN A STATEMENT AT THE UN THE ISLAMIC NATIONS CRITICIZED THE STRATEGY WHICH CALLS FOR A MULTINATIONAL FORCE TO SET UP MUSLIM HAVENS SAYING IT FAILS TO REVERSE SERB AGGRESSION THE WHITE HOUSE ADMITTED THAT AN FBI OFFICIAL REDRAFTED A STATEMENT ABOUT THE AGENCY'S POSITION ON THE FIRING OF THE WHITE HOUSE TRAVEL STAFF THE WHITE HOUSE COMMUNICATIONS CHIEF SAID AN FBI OFFICIAL WAS ASKED TO UPDATE THE STATEMENT TO REFLECT THE AGENCY'S VIEW THAT A CRIMINAL PROBE WAS WARRANTED THOUSANDS OF TIBETANS STONED CHINESEOWNED SHOPS AND A POLICE STATION IN THE CAPITAL OF LHASA ACCORDING TO ACCOUNTS BY FOREIGNERS POLICE FIRED TEAR GAS TO DISPERSE THE CROWD THE DEMONSTRATION BEGAN AS A PROTEST OVER INFLATION AND TAXES BUT TURNED INTO AN EXPRESSION OF ANGER AT CHINESE RULE OVER THE REGION WITNESSES SAID SOME KHMER ROUGE LEADERS ALLOWED CAMBODIAN GUERRILLAS AND VILLAGERS TO GO TO THE POLLS IN UNORGANIZED ELECTIONS IN SPITE OF EARLIER THREATS BY THE REBELS THAT THEY WOULD DISRUPT BALLOTING A HIGHERTHANEXPECTED TURNOUT WAS REPORTED ON THE SECOND DAY OF A NATIONAL VOTE THE SENATE CONFIRMED ROBERTA ACHTENBERG A MEMBER OF THE SAN FRANCISCO BOARD OF SUPERVISORS TO BE AN ASSISTANT SECRETARY OF HUD THE 5831 VOTE CAME AFTER A BITTER THREEDAY DEBATE IN WHICH OPPONENTS SAID ACHTENBERG A LESBIAN WAS LIKELY TO USE HER POST TO ADVANCE GAY RIGHTS THE US AND NORTH KOREA AGREED TO HOLD HIGHLEVEL TALKS IN NEW YORK BEGINNING NEXT WEDNESDAY THE STATE DEPARTMENT SAID THE US HAS BEEN ATTEMPTING TO PERSUADE THE NORTH KOREAN GOVERNMENT TO REVERSE ITS DECISION TO WITHDRAW FROM A NUCLEAR NONPROLIFERATION TREATY FOUR ISRAELI PARATROOPERS WERE KILLED AND THREE WOUNDED BY FRIENDLY FIRE IN SOUTH LEBANON ARMY OFFICIALS SAID AN INVESTIGATION WAS ORDERED INTO THE PREDAWN INCIDENT IN WHICH TWO SQUADS MISTAKENLY FIRED ON EACH OTHER THE SUPREME COURT REFUSED TO HEAR AN APPEAL BY VIRGINIA MILITARY INSTITUTE OF A LOWERCOURT RULING THAT MAY FORCE THE MILITARY COLLEGE TO ADMIT WOMEN OR GIVE UP STATE FUNDS AN APPEALS COURT LAST YEAR SAID THE SCHOOL'S ADMISSIONS POLICY POSED CONSTITUTIONAL PROBLEMS UNLESS VIRGINIA OFFERS THE SAME EDUCATIONAL OPTIONS FOR WOMEN RUSSIA DISPLAYED HUNDREDS OF DEFENSE PRODUCTS AT A TECHNOLOGY SHOW IN BIRMINGHAM ENGLAND MOSCOW IS IN SEARCH OF WESTERN BUYERS FOR ITS PREVIOUSLY SECRET MILITARY TECHNOLOGY DEMOCRATS ARE SETTING UP WHAT THEY HOPE WILL BECOME A BROAD BIPARTISAN ORGANIZATION TO GENERATE GRASSROOTS SUPPORT FOR CLINTON'S HEALTHCARE PLAN THE DEMOCRATIC NATIONAL COMMITTEE HAS PROVIDED FUNDS FOR THE GROUP THE UNIVERSITY OF PENNSYLVANIA TOLD A WHITE STUDENT THAT RACIAL HARASSMENT CHARGES WERE DROPPED AGAINST HIM THE STUDENT EDEN JACOBOWITZ CALLED A GROUP OF BLACK WOMEN WATER BUFFALO WHEN THEY MADE NOISE OUTSIDE HIS DORM THE WOMEN SAID THEY DROPPED THE CASE BECAUSE THE MEDIA GAVE JACOBOWITZ AN ADVANTAGE A ROMAN CATHOLIC CARDINAL WAS SHOT AND KILLED IN THE GUADALAJARA AIRPORT MEXICAN NEWS REPORTS SAID CARDINAL POSADAS HIS DRIVER AND FOUR OTHER PEOPLE DIED IN WHAT APPEARED TO BE A SHOOTOUT BETWEEN DRUG TRAFFICKERS POSADAS 66 THE ARCHBISHOP OF GUADALAJARA WAS ELEVATED TO CARDINAL BY POPE JOHN PAUL II IN JUNE 1991 9305250011 930525 WHAT'S NEWS BUSINESS AND FINANCE ABBOTT LABS SETTLED FOR MORE THAN 140 MILLION FEDERAL ANTITRUST ALLEGATIONS INVOLVING ITS INFANT FORMULA ALONG WITH CHARGES FROM FLORIDA OF BIDRIGGING THE FIRM WHICH DENIED ANY WRONGDOING STILL FACES ACTIONS FILED BY THE FTC NINE STATECOURT SUITS RELATED TO BABYFORMULA PRICING AND PROBES BY FIVE OTHER STATES OVER POSSIBLE ANTITRUST LAW VIOLATIONS SOME HOUSE DEMOCRATS ARE URGING A DELAY UNTIL NEXT MONTH OF THIS WEEK'S VOTE ON CLINTON'S DEFICITREDUCTION PROGRAM THE LAWMAKERS HAVE BECOME SKITTISH ABOUT THE BILL'S CHANCES IN THE SENATE BUT HOUSE LEADERS INSISTED THE VOTE WOULD TAKE PLACE AS SCHEDULED AT&T IS EXPECTED TO ANNOUNCE TODAY A JOINT VENTURE WITH COMMUNICATIONS CARRIERS IN EUROPE ASIA AND AUSTRALIA MAKING CALLS BY A MULTINATIONAL FIRM TO ITS FOREIGN OFFICES EASIER SONY CONSOLIDATED ITS U S ELECTRONICS AND ENTERTAINMENT OPERATIONS UNDER ONE UMBRELLA THAT ACCOUNTS FOR 135 BILLION OF WORLDWIDE SALES OF 344 BILLION MICHAEL SCHULHOF WAS NAMED THE UNIT'S PRESIDENT AND CHIEF EMPLOYERS MAY NOT CONTRIBUTE PROPERTY TO RETIREMENT PLANS UNDER THE FEDERAL PENSIONPROTECTION LAW THE SUPREME COURT SAID THE COURT SAID THAT IF PROPERTY CONTRIBUTIONS WERE ALLOWED INSTEAD OF MONEY EMPLOYERS MIGHT OVERVALUE THE PROPERTY SHORTCHANGING RETIREES AND INFLATING TAX DEDUCTIONS THE NEW YORK STOCK EXCHANGE SAID IT PLANS TO EXTEND ITS AFTERHOURS TRADING FOR AT LEAST SIX MONTHS DESPITE THE PILOT PROGRAM'S MIXED RECORD LOUISIANAPACIFIC AND A UNIT WILL PAY 111 MILLION TO SETTLE AN AIR POLLUTION CASE LOUISIANAPACIFIC WHICH SAID IT SETTLED TO AVOID LITIGATION ALSO WILL SPEND 70 MILLION TO INSTALL EMISSIONSCONTROL EQUIPMENT AT PLANTS THE CIVIL PENALTY IS THE SECONDLARGEST EVER UNDER FEDERAL ENVIRONMENTAL LAW GENERAL MILLS WILL TAKE UP TO 50 MILLION IN CHARGES IN THE CURRENT QUARTER IN EXPECTATION OF HIGHER TAXES AND HEALTHCARE COSTS THAT COULD CAUSE IT TO FALL SHORT OF EARNINGS ESTIMATES ITS STOCK FELL 2 OR 3 TO 67375 ALYESKA PIPELINE ILLEGALLY FIRED A SAFETY INSPECTOR FOR BLOWING THE WHISTLE ON ALLEGED SAFETY AND ENVIRONMENTAL VIOLATIONS A US AGENCY RULED ALYESKA A CONSORTIUM OWNED BY EXXON BP AND ARCO HAS BEEN HIT BY CLAIMS FROM FIVE OTHER FORMER INSPECTORS AND QUALITYCONTROL ENGINEERS IBM SAID IT WILL OFFER ITS FIRST PREFERRED STOCK EVER A 750 MILLION ISSUE AS PART OF A PLAN TO SELL UP TO 3 BILLION OF LONGTERM DEBT AND PREFERRED STOCK DURING THE NEXT NINE TO 12 MONTHS OLYMPIA & YORK'S US UNIT WILL RECEIVE A COURTAPPOINTED MEDIATOR THIS WEEK TO INTERCEDE BETWEEN THE UNIT'S CREDITORS AND EQUITY HOLDERS IN AN ATTEMPT TO BREAK A VOLATILE IMPASSE THE UNITED MINE WORKERS UNION EXPANDED ITS TWOWEEKOLD SELECTIVE STRIKE TO THREE MORE COAL PRODUCERS INCLUDING THE NATION'S SECOND LARGEST COAL PRODUCER CONSOL ENERGY CONSOL IS OWNED BY RHEINBRAUN AND DUPONT COMMODITY REGULATORS FILED A COMPLAINT AGAINST THE CHICAGO BOARD OF TRADE ALLEGING THAT IT WAS LAX IN RESPONDING TO THE COLLAPSE OF COMMODITY TRADING COMPANY STOTLER GROUP THE CFTC ALSO FILED ADMINISTRATIVE COMPLAINTS AGAINST STOTLER'S FORMER ACCOUNTING FIRM COOPERS & LYBRAND ERNST & YOUNG NAMED PHILIP LASKAWY TO SUCCEED RAY GROVES AS CHAIRMAN LASKAWY SAID HE WILL CONTINUE TO MAKE CUTTING OF LITIGATION RISK AND SHEDDING RISKY CLIENTS PRIORITIES TOKYO STOCK PRICES ENDED NARROWLY MIXED MONDAY BUT THE NIKKEI INDEX FELL 8131 POINTS TO 2047616 POINTS IN REACTION TO WALL STREET'S EARLY ADVANCE LONDON STOCKS HELD A LATE RALLY TO END A STRING OF LOSING SESSIONS BONDS LEHMAN BROTHERS TREASURY INDEX 504259 UP 1302 COMMODITIES OIL 1972 A BARREL OFF 16 CENTS DOW JONES FUTURES INDEX 12177 OFF 163 SPOT INDEX 12160 OFF 085 DOLLAR 11065 YEN UP 035 16374 MARKS UP 00121 9305250010 930525 TECHNOLOGY CHIP MAKER CYRIX INTEL RIVAL PLANS 254 MILLION IPO BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL CYRIX CORP ONE OF THE COMPANIES ATTEMPTING TO CHALLENGE INTEL CORP'S DOMINANCE IN MICROPROCESSORS SAID IT PLANS TO GO PUBLIC WITH A 254 MILLION OFFERING OF COMMON STOCK CYRIX SAID IT WOULD SELL ABOUT TWO MILLION SHARES OF STOCK FOR AN ESTIMATED 13 TO 15 A SHARE THE COMPANY WHICH IS BASED IN RICHARDSON TEXAS SAID IT MIGHT USE PROCEEDS OF THE PLANNED OFFERING TO BUY A MINORITY STAKE IN A CHIPMANUFACTURING PLANT OWNED BY SGSTHOMSON MICROELECTRONICS NV A FRANCOITALIAN CHIP MAKER CYRIX DESIGNS MICROPROCESSORS THAT MIMIC INTEL'S POPULAR 486 AND 386 COMPUTER CHIPS WHICH SERVE AS THE BRAINS FOR THE MAJORITY OF PERSONAL COMPUTERS SOLD BUT CYRIX LIKE MANY SMALLER CHIP MAKERS DOESN'T OWN MANUFACTURING FACILITIES CONTRACTING INSTEAD WITH SGSTHOMSON AND TEXAS INSTRUMENTS INC TO MAKE ITS CHIPS THAT THREATENS TO SLOW THE COMPANY'S GROWTH PROSPECTS ANALYSTS SAY LEADINGEDGE CAPACITY IS IN FAIRLY SHORT SUPPLY SAYS JOHN GERAGHTY AN INDUSTRY ANALYST WITH FIRST BOSTON CORP IN NEW YORK CYRIX'S PRELIMINARY FILING WITH THE SECURITIES AND EXCHANGE COMMISSION ALSO REVEALED A HITHERTO UNDISCLOSED DISPUTE WITH TEXAS INSTRUMENTS OVER LICENSING AND MANUFACTURING ISSUES IN THE FILING CYRIX SAID IT HAS RECEIVED LIMITED SUPPLIES OF CHIPS FROM TI AND AS A RESULT ASSUMES IT WILL NOT RECEIVE ANY PRODUCTS FROM TEXAS INSTRUMENTS IN THE FUTURE FURTHER THE DISPUTE COULD GIVE TI WHICH HAS A LICENSE TO SELL CYRIXDESIGNED CHIPS UNDER ITS OWN NAME THE RIGHT TO SELL ALL CURRENT AND SOME FUTURE CYRIX PRODUCTS THROUGH THE TERM OF THE FIVEYEAR AGREEMENT IF THAT WERE TO HAPPEN CYRIX SAID IT WOULD DAMAGE ITS ABILITY TO DEVELOP ITS OWN BRAND NAME IDENTITY CYRIX ALSO SAID A TI OFFICIAL HAS THREATENED TO SUE CYRIX IF NEGOTIATIONS ARE UNSUCCESSFUL TI OFFICIALS COULDN'T BE REACHED FOR COMMENT IN THE SEC FILING CYRIX SAID ITS CURRENT MANUFACTURING AGREEMENT WITH SGSTHOMSON WOULD BE ABLE TO MEET ITS NEEDS THROUGH THE END OF THE YEAR AFTERWARD IT WOULD NEED TO PURCHASE ITS OWN MANUFACTURING FACILITY EXPAND ITS CONTRACTS WITH TI AND SGSTHOMSON OR CONTRACT WITH ANOTHER CHIP MAKER EARLIER THIS MONTH SGSTHOMSON SIGNED A NEW CONTRACT AGREEING TO SUPPLY MICROPROCESSORS TO CYRIX THROUGH 1994 AS PART OF THE PACT SGSTHOMSON ALSO WOULD BE PERMITTED TO SELL CYRIXDESIGNED CHIPS UNDER ITS OWN NAME CYRIX HAS CARVED OUT A SMALL NICHE IN THE RAPIDLY GROWING 38 BILLION MARKET FOR 32BIT MICROPROCESSORS ACCORDING TO ITS SEC FILING THE COMPANY'S SALES HAVE NEARLY TRIPLED IN THREE YEARS TO 729 MILLION IN 1992 FROM 252 MILLION IN 1990 IN THE FIRST QUARTER OF 1993 CYRIX REPORTED SALES OF 29 MILLION BUT THAT'S STILL JUST A TINY PIECE OF THE TOTAL MICROPROCESSOR PIE ACCORDING TO INSTAT A TEMPE ARIZ SEMICONDUCTOR MARKET RESEARCH FIRM INTEL CLAIMS ABOUT 84 OF THE MARKET FOR STANDARD PC CHIPS WITH ITS 386 AND 486 FAMILIES MOTOROLA INC WHICH MAKES A COMPARABLE CHIP PRIMARILY USED IN APPLE COMPUTER INC'S LINE HAS ABOUT 74 AND ADVANCED MICRO DEVICES INC HAS ABOUT 71 ALL OTHERS INCLUDING CYRIX CLAIM ABOUT 14 SINCE DECEMBER 1990 CYRIX HAS BEEN LOCKED IN A CONTINUING LEGAL BATTLE WITH INTEL OVER THE COMPANY'S CHIP PATENTS WHILE CYRIX HAS ASKED FOR COURTS TO RULE THAT ITS PRODUCTS DON'T INFRINGE ON INTEL PATENTS INTEL HAS SOUGHT TO BAR CYRIX FROM SELLING ITS 486 LINE OF CHIPS ALL CASES ARE STILL OUTSTANDING WITH INTEL STARTING TO SHIP ITS NEXT GENERATION OF CHIPS THE PENTIUM ANALYSTS EXPECT THE MARKET FOR SMALLER COMPANIES' PRODUCTS TO BE SQUEEZED FURTHER EVEN AS THE TOTAL SIZE OF THE MARKET GROWS CYRIX LIKE OTHER COMPETING CHIPMAKERS HAS SAID IT INTENDS TO DEVELOP A NEXTGENERATION CHIP THAT WOULD MATCH THE PERFORMANCE OF THE PENTIUM CYRIX HAS AN OLDER PRODUCT THAT IS GOING TO GO INTO THE LOWERPRICED SYSTEMS AND THE PORTABLES SAYS TONY MASSIMINI AN INSTAT RESEARCHER THEY'RE GOING TO HAVE TO BUCK A BIG HORSE TO TAKE A BIG CHUNK OUT OF INTEL 9305250009 930525 CORRECTIONS & AMPLIFICATIONS MFS COMMUNICATIONS CO IS ABOUT 72OWNED BY PETER KIEWIT SONS INC ON A FULLY DILUTED BASIS THIS INCLUDES THE EFFECT OF AN INCREASE IN THE COMPANY'S INITIAL PUBLIC OFFERING TO 11 MILLION SHARES FROM EIGHT MILLION SHARES AS WELL AS STOCK OPTIONS FOR SIX MILLION SHARES PROVIDED TO MANAGEMENT AN ARTICLE FRIDAY REPORTED THE KIEWIT SONS' STAKE AT ABOUT 85 BASED ON INFORMATION AVAILABLE FROM A PRELIMINARY PROSPECTUS FOR THE OFFERING ALSO MERRILL LYNCH & CO LAST YEAR SOLD ITS REMAINING STAKE IN TELEPORT COMMUNICATIONS A PROVIDER OF FIBEROPTIC PRIVATE PHONE NETWORKS THE ARTICLE INCORRECTLY STATED THAT TELEPORT IS A UNIT OF MERRILL LYNCH 9305250008 930525 AUTO MAKERS' CAPITAL FESTIVAL THEME GOOD FOR THEM GOOD FOR AMERICA BY ASRA Q NOMANI AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON ROBIN LYTTLE HAS A PARTICULAR WORRY WILL COUNTRY SUNFLOWERS IN MASON JARS CLASH WITH THE URBANE SLEEK LOOKS OF A FORD PROBE AND WILL FRIED GREEN TOMATOES BE THE RIGHT THING TO SERVE WITH SATURN COUPES UNDER A BIG TENT ON THE MALL DETROIT'S BIG THREE CAR COMPANIES AND THE UNITED AUTO WORKERS UNION WILL BE DISHING OUT HEAPS OF AMERICANA HERE TODAY ALONG WITH 120 ALLAMERICAN WELL ALMOST ALLAMERICAN CARS AND TRUCKS IT'S A SPLASHY HIGHPROFILE EFFORT TO CONVINCE OFFICIAL WASHINGTON THAT DETROIT IRON IS WORLDCLASS AND THAT THE AUTO INDUSTRY OR AT LEAST THE DETROIT PART OF IT DESERVES A FEW FAVORS AND THAT'S WHY THE JAPANESE AUTO MAKERS ARE LOUDLY CRYING FOUL NONETHELESS PRESIDENT CLINTON IS EXPECTED TO STOP BY TODAY FOR HOT DOGS APPLE PIE AND CHEVROLET IN WHAT'S BEING BILLED AS DRIVE AMERICAN QUALITY DAY FOR YEARS DETROIT HAS BEEN ACCUSED OF WHINING WHEN IT SOUGHT HIGHER TARIFFS ON JAPANESE IMPORTS AND COMPLAINED THAT IT COULDN'T LIVE WITH POLLUTIONCONTROL AND FUELECONOMY RULES IF ONLY THE BIG THREE BUILT BETTER CARS THEY COULD HANDLE BOTH THE COMPETITION AND THE REGULATIONS CRITICS SAID DETROIT HAS DECIDED TO STOP WHINING AND START SCHMOOZING IT IS DECLARING THE QUALITY PROBLEM FIXED AND IS INVITING 4000 MEMBERS OF CONGRESS THEIR STAFFERS AND OFFICIALS OF THE CLINTON ADMINISTRATION TO KICK THE TIRES THE BIG THREE AND THE UAW ARE ARRIVING WITH A FLOURISH ALONG WITH THE 120 CARS AND TRUCKS THAT WILL BE ON HAND THEY'RE BRINGING A PORTABLE CARWASH MACHINE AND A 160FOOTLONG WHITE TENT THEY'VE HIRED 150 PEOPLE JUST TO KEEP THE CARS BUFFED GASSED AND HANDLED SAFELY IN WHAT IS EXPECTED TO BE A 42MILE TEST DRIVE IN THE VICINITY OF THE MALL THE CAPITOL HAS BEEN FLOODED WITH THE FANCY INVITATIONS FOR THE AFFAIR EVEN A SENATOR'S SCHEDULER GOT ONE AND I NEVER GET INVITED TO ANYTHING SHE SAYS IF NOTHING SEEMS LEFT TO CHANCE IT'S BECAUSE ALL THE ARRANGEMENTS ARE BEING HANDLED BY THREE POLITICALLY CONNECTED WOMEN COLLEEN NUNN WIFE OF GEORGIA SEN SAM NUNN LESLIE HAYES SISTER OF LOUISIANA REP JAMES HAYES AND ROSEANNE DOMENICI WIFE OF NEW MEXICO SEN PETE DOMENICI THEIR SPECIALEVENTS PLANNING FIRM HAYES DOMENICI & NUNN WAS HIRED BY THE BIG THREE AND THE UAW FORGET ABOUT THE LEGGY MODELS IN SKIMPY DRESSES THAT USUALLY APPEAR AT CAR SHOWS NO NO NO NO NO SAYS MRS NUNN INSTEAD IT'LL BE JUST LIKE A COUNTRY FAIR EXPLAINS MS LYTTLE WHO WORKS FOR THE FIRM THAT MEANS COTTON CANDY POPCORN CARTS CLOWNS COUNTRY FRIED CHICKEN LEMONADE BEER AMERICAN OF COURSE AND MR CLINTON'S FAVORITE LEMON PIE IN ADDITION OF COURSE TO THE CARS THE CARS HAVE BEEN EVEN MORE CAREFULLY SELECTED THAN THE CUISINE THIS BEING A BIG THREE AND UAW AFFAIR THERE WON'T BE ANY FOREIGN CARS AT LEAST NOT OSTENSIBLY BUT FORD MOTOR CO'S TAURUS SHO SUPER HIGH OUTPUT WILL BE ON HAND IT'S POWERED BY A JAPANESEMADE YAMAHA ENGINE THE FORD PROBE GT WHICH WON MOTOR TREND MAGAZINE'S CAR OF THE YEAR AWARD WILL BE AROUND TOO IT WAS ENGINEERED BY MAZDA MOTOR CORP AND IS POWERED BY A MAZDA ENGINE IT'S BUILT IN MICHIGAN BUT THE FACTORY IS 50OWNED BY MAZDA ALSO AVAILABLE FOR THE NOTABLES TO TEST DRIVE WILL BE CHRYSLER CORP'S HIGHLY ACCLAIMED MINIVANS AND LH SEDANS THE EAGLE VISION DODGE INTREPID AND CHRYSLER CONCORDE ALL ARE MADE IN CANADA BUT THE KOREANMADE FORD FESTIVA AND THE JAPANESEMADE DODGE STEALTH WILL BE ABSENT SO WILL GENERAL MOTORS CORP'S CHEVROLET CAMARO WHICH IS BEING MARKETED AS A CAR THAT IS AS AMERICAN AS ROCKANDROLL BUT IT IS ASSEMBLED IN STE THERESE QUEBEC MEANWHILE SOME CARS THAT REALLY ARE MADE IN AMERICA WON'T BE INVITED THOSE INCLUDE THE OHIOMADE HONDA ACCORD THE TENNESSEEBUILT NISSAN ALTIMA AND THE KENTUCKYBORN TOYOTA CAMRY THE JAPANESE COMPANIES THAT BUILD THESE CARS IN THE AMERICAN HEARTLAND ARE ANGRY AT BEING EXCLUDED ALL THE MORE SO BECAUSE THEY KNOW THE BIG THREE ARE MULLING CHARGES OF DUMPING AGAINST THE JAPANESE PUSHING FOR HIGHER TARIFFS ON JAPANESE IMPORTS AND TRYING TO PULL JAPANESE COMPANIES INTO SHARING THEIR STEEP HEALTHCARE COSTS THE JAPANESE AUTO MAKERS ALSO POINT OUT THAT A STATEFAIRSTYLE TEST DRIVE MAY NOT BE THE MOST SCIENTIFIC FORUM FOR EVALUATING US QUALITY HOW MUCH CAN YOU TELL ABOUT THE QUALITY OF AN AMERICAN CAR BY DRIVING IT 10 MINUTES ON THE WASHINGTON MALL GROUSES JAMES R OLSON A GROUP VICE PRESIDENT AT TOYOTA MOTOR CO'S US SALES ARM EVEN SOME FANS OF AMERICAN CARS ARE PERTURBED IT'S PRETTY OUTRAGEOUS SAYS LYNDA DAVIS A 27YEAROLD INFORMATION SPECIALIST WHO PLAYS SOFTBALL ON THE MALL AND DIDN'T GET AN INVITATION TO THE COUNTRY FAIR SHINDIG IT'S LOBBYING IN DISGUISE PLUS SHE SAYS IT'S VERY IRONIC THAT JAPANESE CAR COMPANIES ARE LEFT OUT MS DAVIS DRIVES A FORD MERCURY TRACER BUILT WITH MAZDA'S HELP IN HERMOSILLO MEXICO SHE RATTLES HER IGNITION KEY TO SHOW ITS INSIGNIA IT HAS MAZDA WRITTEN ON IT LESLIE HAYES IS THE WIFE OF LOUISIANA REP JAMES HAYES AND ROSEANNE DOMENICI IS THE SISTER OF NEW MEXICO SEN PETE DOMENICI THE RELATIONSHIPS WERE INCORRECTLY STATED IN TUESDAY'S ARTICLE ABOUT A PROMOTIONAL EVENT HELD IN WASHINGTON BY THE BIG THREE CAR COMPANIES AND THE UNITED AUTO WORKERS UNION 9305250007 930525 BUSINESS BRIEF NATIONAL INTERGROUP INC LOSS FOR QUARTER IS REPORTED DUE TO ACCOUNTING MOVE NATIONAL INTERGROUP INC HURT BY A 224 MILLION ACCOUNTING LOSS ON ITS INVESTMENT IN NATIONAL STEEL CORP REPORTED A NET LOSS OF 43 MILLION OR 28 CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER ENDED MARCH 31 IN THE YEAREARLIER PERIOD THE DALLAS HOLDING COMPANY POSTED NET INCOME OF 87 MILLION OR 36 CENTS A SHARE SALES FOR THE QUARTER SOARED 44 TO 133 BILLION FROM 9274 MILLION A YEAR EARLIER BOLSTERED BY SHARPLY HIGHER SALES AT DRUG DISTRIBUTOR FOXMEYER CORP OF WHICH NATIONAL INTERGROUP OWNS 81 THE COMPANY SAID THE ACCOUNTING ADJUSTMENT WAS MADE TO REFLECT AN UNREALIZED LOSS ON ITS 34 MILLION SHARES OF NATIONAL STEEL COMMON STOCK WHICH THE COMPANY SAID IT MIGHT SELL IN THE NEXT SIX MONTHS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE NATIONAL INTERGROUP CLOSED AT 1425 DOWN 125 CENTS 9305250006 930525 WHO'S NEWS ERNST & YOUNG TAPS PHILIP LASKAWY TO SUCCEED RAY GROVES AS CHAIRMAN BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ERNST & YOUNG NAMED PHILIP A LASKAWY 52YEAROLD VICE CHAIRMAN OF ITS NEW YORK METRO REGION TO SUCCEED RAY J GROVES AS CHAIRMAN MR LASKAWY SAID IN AN INTERVIEW THAT HE WILL MAKE THE REDUCTION OF LITIGATION RISK AND SHEDDING OF RISKY CLIENTS A CONTINUING PRIORITY HE ALSO SAID HE WOULDN'T DILUTE THE FIRM'S RATIO OF PROFESSIONALS TO PARTNERS TO CUT COSTS AN ISSUE OF CONCERN TO AUDITING CLIENTS NOWADAYS THE ACCOUNTING CONCERN SAID MR GROVES WHO HAS BEEN CHAIRMAN FOR 17 YEARS WILL RETIRE OCT 1 1994 AT THE AGE OF 59 BEGINNING OCT 1 1993 MR LASKAWY WILL BE DEPUTY CHAIRMAN WORKING DIRECTLY FOR MR GROVES UNTIL MR LASKAWY BECOMES CHIEF EXECUTIVE FOR A FIVEYEAR TERM BEGINNING IN OCTOBER 1994 ACCORDING TO ERNST AT ERNST THE SECONDBIGGEST US ACCOUNTING FIRM IN TERMS OF ANNUAL REVENUE THE CHIEF EXECUTIVE'S MANDATORY RETIREMENT AGE IS 60 ERNST ALSO NAMED WILLIAM L KIMSEY 50 AND MICHAEL A HENNING 53 COCHAIRMEN STARTING OCT 1 1993 MR KIMSEY CURRENTLY IS VICE CHAIRMAN WESTERN REGION AND MR HENNING IS VICE CHAIRMAN HEADING TAX SERVICES FOR THE FIRM MR LASKAWY APPARENTLY EDGED OUT MESSRS KIMSEY AND HENNING AND A FEW OTHER ERNST PARTNERS FOR THE CHIEF EXECUTIVE POST HE WAS SELECTED LAST WEEK BY THE FIRM'S 18MEMBER PARTNERS' ADVISORY COUNCIL WHICH IS ELECTED BY ERNST'S PARTNERS FOR THREEYEAR TERMS FORMED IN 1989 THROUGH THE MERGER OF ERNST & WHINNEY AND ARTHUR YOUNG & CO ERNST & YOUNG HAS HAD TO GRAPPLE WITH NUMEROUS BIG LAWSUITS BY FEDERAL REGULATORS INVOLVING ALLEGEDLY FAULTY THRIFT AND BANK AUDITS THE FIRM WAS ABLE TO SETTLE ALL THE LAWSUITS LATE LAST YEAR WHEN IT PAID A RECORD UMBRELLA SETTLEMENT OF 400 MILLION TO FEDERAL REGULATORS TO RESOLVE ALL OF THE CLAIMS BUT EVEN WITH THIS SETTLEMENT MR LASKAWY SAID THAT HE STILL BELIEVES THE INCREASING BURDEN OF LITIGATION REMAINS ONE OF OUR BIGGEST CHALLENGES MR LASKAWY SAID ERNST HAS BEEN TAKING HARD LOOKS AT NEW AND EXISTING AUDIT CLIENTS TO SEE WHETHER WE CAN GET RID OF THOSE WHO PRESENT THE MOST LITIGATION RISK HE SAID THAT WHILE THE FIRM HAS ACCOMPLISHED A BIG PART OF THIS EFFORT SUCH A REVIEW WILL BE A CONTINUING PROCESS IN ACQUIRING NEW CLIENTS AND REVIEWING ONES WE ALREADY HAVE ON STAFFING MR LASKAWY SAID ERNST IS COMFORTABLE WITH ITS CURRENT RATIO OF EIGHT PROFESSIONALS TO EACH PARTNER WHICH IS IMPROVED SLIGHTLY FROM 7TO1 A FEW YEARS AGO AND WE AREN'T SEEKING MORE LEVERAGE IN THIS AREA NOW SOME OF THE BIG ACCOUNTING FIRMS HAVE SAID A 10TO1 RATIO IS MORE EFFICIENT BUT OTHER ACCOUNTING FIRMS HAVE FOUND IT DIFFICULT TO ACHIEVE THIS RATIO WITHOUT HURTING CLIENT SERVICE JAMES C EMERSON PUBLISHER OF THE PROFESSIONAL SERVICES REVIEW A NEWSLETTER ON THE SIX MAJOR ACCOUNTING FIRMS SAID THAT ANOTHER BIG CHALLENGE FACING MR LASKAWY WILL BE TO MAKE A MAJOR COMMITMENT FOR TRAINING OF NEW PROFESSIONALS IN THE INCREASINGLY COMPETITIVE RACE FOR NEW BUSINESS AMONG MAJOR ACCOUNTING FIRMS ERNST OVER THE PAST FOUR YEARS HAS LOST ITS SPOT AS THE BIGGEST US FIRM TO ARTHUR ANDERSEN & CO WHICH HAS A MUCH STRONGER CONSULTING BUSINESS THAN THE OTHER MAJOR ACCOUNTING FIRMS MR LASKAWY SAID HIS INTENTION ISN'T TO BE THE BIGGEST BUT THE HIGHEST QUALITY FIRM AND WE WILL CONTINUE TO MAKE A MAJOR COMMITMENT TO TRAINING OF EMPLOYEES MR LASKAWY SAID THAT HE WILL PUSH ERNST PERSONNEL TO GET THE MESSAGE OUT TO CLIENTS ABOUT THE FIRM'S SKILLS IN SPECIFIC INDUSTRY AREAS SUCH AS FINANCIAL SERVICES HEALTH CARE AND MANUFACTURING BUT HE FEELS THAT THIS OBJECTIVE CAN BE DONE WITHOUT SPENDING A LOT FOR NATIONAL ADVERTISING AS SOME OTHER BIG FIRMS HAVE DONE BOTH ANDERSEN FOR ITS CONSULTING PRACTICE AND COOPERS & LYBRAND HAVE MAJOR NATIONAL ADVERTISING BUDGETS MR GROVES WAS THE YOUNGEST CHIEF EXECUTIVE TO HEAD THE FIRM WHEN NAMED IN 1977 AN ERNST SPOKESMAN SAID THAT MR GROVES IS RETIRING A YEAR BEFORE THE MANDATORY AGE BECAUSE HE WISHES THE FIRM TO ACHIEVE ORDERLY SUCCESSION AFTER HIS LONG TENURE AS CEO WITH THE FIRM MR GROVES WAS OUTOFTOWN AND UNAVAILABLE TO COMMENT MR LASKAWY JOINED SD LEIDESDORF & CO IN 1961 AND BECAME A PARTNER IN 1971 ERNST & WHINNEY ACQUIRED THE NEW YORK ACCOUNTING FIRM IN 1978 IN 1985 MR LASKAWY WAS NAMED VICE CHAIRMAN AND MANAGING PARTNER OF THE NEW YORK REGION FOR ERNST & WHINNEY PRIOR TO ITS MERGER WITH ARTHUR YOUNG ERNST WHICH HAS MORE THAN 1800 PARTNERS IN MORE THAN 100 US OFFICES HAD 228 BILLION IN US REVENUE LAST YEAR 9305250005 930525 BUSINESS BRIEF UNITED MINE WORKERS' STRIKE REACHES THREE MORE CONCERNS INCLUDING CONSOL THE UNITED MINE WORKERS UNION EXPANDED ITS TWOWEEKOLD SELECTIVE STRIKE TO THREE MORE COAL PRODUCERS INCLUDING THE NATION'S SECONDLARGEST COAL CONCERN THE UNION SAID IT EXTENDED ITS STRIKE TO CERTAIN MINES OWNED BY CONSOL ENERGY INC ROCHESTER & PITTSBURGH COAL CO AND CLI CORP CONSOL THE SECONDLARGEST COAL PRODUCER IN THE US IS OWNED BY GERMANY'S RHEINBRAUN AG AND DUPONT CO CONSOL'S CHIEF EXECUTIVE OFFICER BR BROWN IS THE CHIEF NEGOTIATOR FOR THE BITUMINOUS COAL OPERATORS' ASSOCIATION WHICH NEGOTIATES FOR 12 COMPANIES CONSOL IS KNOWN FOR TAKING A TOUGH LINE WITH THE UNION ANALYSTS SAID THE UNION SAID THE LATEST TARGETS ALL IN PENNSYLVANIA AND WEST VIRGINIA WILL EXPAND THE NUMBER OF STRIKERS BY 2200 TO 6200 EVEN WITH THE EXPANSION OF THE STRIKE THE UNION HASN'T YET MADE A DENT IN THE MARKET OF THE APPROXIMATELY 1 BILLION TONS OF COAL PRODUCED IN THE US EACH YEAR THE BCOA CONTROLS 17 AND ONLY A SMALL FRACTION OF THAT HAS BEEN AFFECTED BY THE STRIKE A CONSOL SPOKESMAN SAID ONLY FOUR OF ITS 25 MINES HAVE BEEN STRUCK THE BCOA IN A STATEMENT CALLED THE STRIKE ILLTIMED BECAUSE OF THE SOFT MARKET AND SUGGESTED THE UNION RECONSIDER THE DISASTROUS PATH ON WHICH IT HAS EMBARKED RAFAEL A VILLAGRAN AN ANALYST WITH SHEARSON LEHMAN BROTHERS SAYS THE STOPPAGE HAS GOT A WAYS TO GO BEFORE IT HAS A SIZABLE EFFECT ON PRICES WHILE YOU MIGHT GET SOME NERVOUSNESS IF IT LASTS A FEW MONTHS HE SAID ONLY ISOLATED CUSTOMERS HAVE BEEN AFFECTED BY THE STRIKE THE UNION WHICH SAYS IT IS STRIKING OVER THE COMPANIES' REFUSAL TO GRANT WORKERS JOB SECURITY PLANS TO EXPAND THE STRIKE STRATEGICALLY AND SELECTIVELY A UNION SPOKESMAN WASN'T AVAILABLE FOR COMMENT THE UNION ALSO IS STRIKING CERTAIN PROPERTIES OF ASHLAND COAL CO ASHLAND OIL INC'S ARCH MINERAL CORP AMAX INC AND ZEIGLER HOLDING CO THE NATION'S LARGEST PRODUCER HANSON PLC'S PEABODY HOLDINGS HASN'T BEEN INCLUDED YET IN THIS ROUND OF STRIKES 9305250004 930525 LETTERS TO THE EDITOR CARBIDE COSTCUTTING YOUR APRIL 14 REPORT OF THE SALE OF OUR ORGANOSILICON BUSINESS MISREPRESENTED THE RATIONALE BEHIND THE TRANSACTION YOU SHOULD HAVE STOPPED WHEN YOU SAID UNION CARBIDE SOLD THE BUSINESS TO REDUCE DEBT THE SALE OF THIS NONSTRATEGIC ASSET HAD NOTHING TO DO WITH COSTCUTTING ALTHOUGH NO ASPECT OF OPERATIONS IS EXEMPT COSTCUTTING AT CARBIDE IS THE RESULT OF A DELIBERATE PROGRAM OF WORKPROCESS IMPROVEMENT THAT SINCE WE BEGAN IN 1990 WILL HAVE TAKEN NEARLY 400 MILLION OUT OF OUR COST BASE BY THE END OF THIS YEAR A YEAR AHEAD OF OUR PUBLICLY ANNOUNCED SCHEDULE 9305250003 930525 LEISURE & ARTS TOUGH SLEDDING SHE LEARNS TO HOLD THE LINE BY RUTH RUDNER FAIRBANKS ALASKA I CAME HERE TO SEE DOGS AND TO HOOK UP WITH AN OLD FRIEND THE AUSTRIAN MOUNTAINEER HANNES GASSER HE SHUTTLES BETWEEN AUSTRIA AND NORTH AMERICA WITH A KENNELLOAD OF SLED DOGS HE DRIVES FIVE HOURS FROM INNSBRUCK TO FRANKFURT THEN FLIES EIGHT HOURS ON LUFTHANSA CARGO TO FAIRBANKS IT TOOK ME THREE PLANES AND 11 HOURS FROM BOZEMAN BUT YOU CAN'T GO DIRECTLY ANYWHERE FROM MONTANA HANNES MET ME AT THE AIRPORT WITH HIS DOG TRUCK FAIRBANKS WAS FILLED WITH DOG TRUCKS BESIDES THE HUGE POPULATION OF LOCAL MUSHERS MOST OF WHOM LIVE IN NEARBY SALCHA WHERE NOBODY MINDS IF THE NEIGHBORS' DOGS BARK MUSHERS FROM EVERYWHERE WERE IN TOWN FOR THE 48TH ANNUAL ALASCOM NORTH AMERICAN OPEN CHAMPIONSHIP ONE OF THE BIG EVENTS FOR SPRINT DOG RACERS HANNES WHO HAD RACED BEFORE I ARRIVED WAS NOT COMPETING HE RACES IN THE 8DOG CLASS THE OPEN IS FOR UNLIMITED CLASS IN SPRINT RACING THERE ARE 4 6 8 10 AND UNLIMITED DOG CLASSES HANNES'S SON RUNS THE UNLIMITED AND HE WON'T COMPETE AGAINST HIS SON THE DOG TRUCK WAS A RENTED PICKUP TOPPED WITH THE WOODEN BOX KENNEL IN WHICH THE DOGS HAD TRAVELED FROM INNSBRUCK BUT MOST OF THE DOG TRUCKS WERE ELABORATE CUSTOM AFFAIRS SOME HOLDING 40 OR MORE DOGS EVERYBODY'S DOGS LIVE IN THE DOG TRUCKS WHEN THEY ARE AWAY FROM HOME IF A MUSHER GOES OUT TO DINNER HE OR SHE JUST TAKES ALONG 20 OR 30 DOGS AND LEAVES THEM PARKED WHILE DINING THE MOTEL PARKING LOT WAS FILLED WITH DOG TRUCKS WE ARRIVED THERE JUST AS THE MUSHERS WERE COMING OUT TO DROP THE DOGS DROPPING THE DOGS MEANS TAKING THEM OUT OF THEIR BOXES PUTTING THEM ON THE GROUND AND USUALLY ATTACHING THEM BY SHORT LEADS AROUND THE TRUCK SO THEY CAN BE FED OR WATERED OR DO WHATEVER IT IS THEY NEED TO DO WHILE THEIR HANDLERS SCURRY ABOUT WITH SHOVELS CLEANING UP IT DOESN'T MATTER WHAT LANGUAGE YOU SPEAK YOU STILL DROP THE DOGS HANNES FOR INSTANCE WOULD TELL ME FROM TIME TO TIME IN GERMAN ICH MUSS JETZT DROP DE DOGS ONCE DROPPED THEY MUST BE LIFTED AGAIN INTO THE KENNELS ALTHOUGH THE DOGS ARE NOT HEAVY AVERAGE WEIGHT IS ABOUT 40 POUNDS I THINK IT DOES NOT TAKE LONG IF YOU ARE LIFTING 20 OR 30 OR 40 DOGS EVERY FEW HOURS TO BECOME VERY STRONG I HAD IMAGINED SLED DOGS AS BIG HUSKY ANIMALS WITH LONG THICK HAIR BUT THOSE ARE THE DOGS THAT RUN LONG DISTANCE RACES LIKE THE IDITAROD OR THE YUKON QUEST OR THE MONTANA 500 SPRINT DOGS RUN DISTANCES UNDER 36 MILES A VASTLY DIFFERENT SPORT SHORTHAIRED THEY ARE BRED FOR SPEED OVER RELATIVELY SHORT DISTANCES THE NORTH AMERICAN OPEN CONSISTS OF TWO 20MILE DAYS FOLLOWED BY A 30MILE DAY WHITE DOGS ARE POPULAR BECAUSE BY THE MARCH RACES THEY ARE RUNNING HARD IN SUN AND WHITE REFLECTING THE SUN ALLOWS THEM TO STAY A LITTLE COOLER YOU CAN SEE THE LINES OF GREYHOUNDS AND POINTERS BEHIND THE SMILING SOULFUL HUSKY FACES THEY ARE ELEGANT SLEEK ANIMALS SO AFFECTIONATE THAT AS SOON AS THEY GET OUT OF THEIR KENNELS THEY'RE UP WITH THEIR FRONT FEET ON YOUR SHOULDERS READY FOR A HUG EXCITED ABOUT RUNNING THEY ARE NO SOONER ATTACHED TO THE SLED THAN THEY CAN BARELY KEEP THEIR FEET ON THE GROUND FEW SOUNDS EQUAL THAT OF A HUNDRED YIPPING SLED DOGS READY TO GO THE DAY AFTER I ARRIVED WE TOOK HANNES'S DOGS FOR A RUN ON THE JEFF STUDDERT TRAIL SYSTEM A SERIES OF LOOPS VARYING FROM THREE TO 30 MILES NOT FAR FROM DOWNTOWN FAIRBANKS AT LEAST 10 OTHER TRUCKS AND THEIR DOGS ARRIVED TO TRAIN AS WELL MAINTAINED BY THE ALASKA DOG MUSHERS' ASSOCIATION THIS SYSTEM IS USED DURING THE NORTH AMERICAN OPEN WHICH STARTS AND FINISHES DOWNTOWN HANNES LAID OUT THE GANGLINE TO WHICH THE LINES THAT CLIP ONTO THE DOGS' HARNESSES ARE ATTACHED HE HOOKED ON A SLED BEHIND HIS FOR ME THEN PULLED MAGIC CURRY BAZIL DOG VINNIE CONN AND LACE TO THE LINE AND CLIPPED THEM IN ATTACHED PREIS HIS LEAD DOG AT THE FRONT AND TOLD ME TO JUMP ON THE RUNNERS OF MY SLED FORTUNATELY CHRIS STRAAYER A MUSHER IN HER OWN RIGHT AND HANDLER FOR THE 1993 EUROPEAN AND WORLD CHAMPION CANADIAN TERRY STREEPER WAS THERE TO TELL ME TO BEND MY KNEES AS IF I WERE SKIING AND TO LEAN INTO THE TURNS I GUESS HANNES FIGURED I WOULD EITHER DO IT NATURALLY OR DIE STANDING ON THE RUNNERS OF HIS SLED HANNES REMOVED THE ANCHOR AND THE DOGS WERE OFF RUNNING ACROSS THE OPEN SPACE BETWEEN THE PARKING LOT AND THE START OF THE TRAIL THAT WINDS THROUGH CONIFER AND BIRCH WOODS SWINGING FARTHER OUT ON CURVES THAN THE FIRST SLED MY SLED SLID HIGH UP THE BANKS BETWEEN CHRIS' INSTRUCTIONS AND MY DEATH GRIP ON THE SLED HANDLE I STAYED ON FEELING FAIRLY PROUD OF MYSELF UNTIL I NOTICED HANNES WAS SKIMMING ALONG WITH HIS HANDS BEHIND HIS BACK THIS MUST BE EASIER THAN I THINK I THOUGHT THE DOGS WERE MOSTLY OBSCURED ALONG THE STRAIGHTAWAYS BY HANNES BUT I COULD SEE THEM ON THE CURVES HELLBENT ON THE RUN TONGUES OUT SMILES ON THEIR FACES BY THE TIME WE MADE THE SHARP TURN THAT WOULD SEND US BACK ALONG THE 63 MILE LOOP I HAD GOTTEN INTO THE RHYTHM OF THE SLED'S MOVEMENT AND THE DOGS' RUNNING MY HANDS RELAXED MAYBE I THOUGHT I SHOULD TAKE UP DOGSLEDDING AFTER OUR RUN HANNES REMOVED MY SLED AND CLIPPED HIS NEW 8MONTH OLD PUPPIES LARS KEITH AND SHOT ONTO THE LINE HE PUT PREIS NEXT TO SHOT SO SHOT COULD LEARN ABOUT LEADING GOOD LEAD DOGS ARE RARE VITAL TO THE SUCCESS OF THE TEAM AND COMMAND A HEFTY PRICE TERRY STREEPER TOLD ME IT ISN'T DOG SLED RACING ANYMORE IT'S LEADER RACING ONE MUSHER IN FAIRBANKS FOR THE NORTH AMERICAN WITH 40 DOGS DID NOT ENTER BECAUSE HIS LEAD DOG WAS INJURED AND HE HAD NO REPLACEMENT IT WAS MY JOB TO HOLD THE LINE AND RUN THE PUPPIES TO THE TRAIL HEAD I DISCOVERED THAT I CANNOT RUN AS FAST AS A SLED DOG NOR IN ANY MORE OF A STRAIGHT LINE THAN A PUPPY BUT BY THE TIME THEY RETURNED THE PUPPIES KNEW THEY WERE SLED DOGS WE DROVE OUT TO VISIT GEORGE ATTLA SPRINT RACING'S LIVING LEGEND EIGHT TIME WINNER OF THE NORTH AMERICAN ATTLA IS A 59YEAROLD ATHABASCAN WHO HAS BEEN RACING 36 YEARS ABOUT 60 DOGS WERE ATTACHED BY LEADS TO THEIR SQUARE KENNELS IN FRONT OF ATTLA'S CABIN IN A CLEARING SURROUNDED BY EVERGREENS AND BIRCH YOU HAVE TO USE THE STRENGTH A DOG HAS TO THE BEST OF YOUR ABILITY YOU HAVE TO BE THE ONE TO JUDGE THE STRENGTH HE TOLD ME A DOG CAN'T RUN FULL OUT FOR 20 MILES THEY'RE TRAINED TO RUN BUT YOU ASK THEM TO GIVE YOU MORE AND THEY CAN'T GIVE MORE SO THEY JUST LIE DOWN AND QUIT ON YOU YOU HAVE TO KNOW WHAT THEY'RE THINKING ALL THE TIME THE DOG HAS TO FEEL GOOD ABOUT THE RACE WHEN IT'S OVER AND HE'S GIVEN EVERYTHING HE'S GOT HE'S GOT TO BE PLEASED HOW LONG CAN A MUSHER GO ON RACING I ASKED I'M PUSHING IT HE SAID THERE'S ALL KINDS OF SACRIFICES A 20 YEAR OLD WILL MAKE TO WIN BUT A 60 YEAR OLD IS TOO SMART TO MAKE SACRIFICES ATTLA PLACED 9TH BUT NOBODY LOOKED LIKE HIM AT THE START OR FINISH NOBODY STOOD SO TALL SO PROUD AS THIS LEAN AND WEATHERED MAN WINNER FOR THE THIRD TIME ROXY WRIGHTCHAMPAINE CAME IN LOOKING STERN SO DID HER DOGS SECOND PLACE WENT TO CANADIAN ROSS SAUNDERSON IN SPITE OF A RUNIN WITH A STRAY PIT BULL VENDORS SELLING SMOKED SALMON FUR HATS AND HIDES REINDEER HOTDOGS AND POLISH SAUSAGE LINED THE START AREA SPECTATORS JAMMED THE SIDEWALKS NEAR THE RACK OF PELTS SET UP FOR THE DAILY FUR AUCTION A PARKED TRAILER BORE A HUGE SIGN INVITING PEOPLE TO SIGN A PETITION TO IMPEACH GOVERNOR WALLY HICKEL THE GOVERNOR WEARING AN OVERCOAT AND NECKTIE APPEARED SAID A FEW WORDS OF WELCOME THEN LEFT WITHOUT WATCHING THE FIRST RACER TAKE OFF THE STREET SMELLED OF DOGS AND THE STRAW IN THE KENNELS THE TEMPERATURE ON THE CORNER BANK SAID 32 DEGREES WARM FOR THE DOGS AND SLOW FOR THE SLEDS EVERYBODY SAID STANDING HAPPILY IN THE WARM SUN THE DOGS TIED TO THE TRUCKS JUMPED AND STRAINED AGAINST THEIR LEADS HANDLERS CALMED THE DOGS WAITING FOR THE COUNTDOWN UNTIL THE MOMENT OF START WHEN THE MUSHER YELLED AND THE DOGS EXPLODED FORWARD WITH SUCH TREMENDOUS HEART THAT MY HEART FELT IT WOULD BURST WITH THE SHEER MAGNIFICENCE OF IT THESE DOGS GIVE ALL THERE IS TO GIVE MS RUDNER WRITES ABOUT THE OUTDOORS AND LIVES IN BOZEMAN MONT 9305250002 930525 LETTERS TO THE EDITOR WESTERN UNION'S TIES TO BLACK COMMUNITY YOUR ARTICLE MARKETERS MISS OUT BY ALIENATING BLACKS APRIL 9 MISREPRESENTED WESTERN UNION'S ATTITUDE TOWARD THE BLACK COMMUNITY RATHER THAN RISK ALIENATING BLACKS THE COMPANY HAS IN FACT MADE A DETERMINED EFFORT TO STRENGTHEN ITS TIES WITH THIS VALUABLE CONSUMER GROUP FIRST I TAKE ISSUE WITH YOUR ASSERTION THAT ONE OF OUR COMMERCIALS SOMEHOW DOESN'T RING TRUE THE SINGING GROUP SHOWN IN THE COMMERCIAL WAS INDEED GENUINE IT WAS THE COASTERS WHO WERE CAST FOR THEIR CROSSRACIAL APPEAL THEY ALSO HAPPENED TO BE ON A NOSTALGIA TOUR WHEN THE COMMERCIAL FIRST AIRED MORE THAN FOUR YEARS AGO INDEED WESTERN UNION COMMERCIALS HAVE PORTRAYED BLACK AMERICANS IN A VARIETY OF POSITIVE ROLES AN EARLIER COMMERCIAL IN THE SAME CAMPAIGN AS THE COASTERS SPOT FEATURED A BLACK COLLEGE STUDENT PREPARING FOR GRADUATION WHILE A COMMERCIAL CURRENTLY ON THE AIR INCLUDES A BLACK FEMALE JUDGE 9305250001 930525 WHO'S NEWS FARMER BROS FARMER BROS CO TORRANCE CALIF ROY E FARMER 40 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PRODUCER AND DISTRIBUTOR OF COFFEE AND COFFEERELATED PRODUCTS MR FARMER PREVIOUSLY VICE PRESIDENTADMINISTRATION SUCCEEDS HIS FATHER ROY F FARMER 75 WHO WILL SERVE IN THE NEWLY CREATED POSITIONS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9305240191 930524 KLM REJECTS CLAIM BY UNION FEDERATION THAT CASH IS NEEDED SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM KLM ROYAL DUTCH AIRLINES SAID FIERCE PRICE COMPETITION IS EXERTING STRONG PRESSURE ON ITS INCOME BUT THE DUTCH CARRIER REJECTED UNION SUGGESTIONS THAT IT NEEDS ONE BILLION GUILDERS 5527 MILLION OF EMERGENCY CAPITAL A SPOKESWOMAN FOR AMSTELVEENBASED KLM SAID THE COMPANY'S FEBRUARY PREDICTION THAT COMPETITION IN ITS CROWDED MARKETS WOULD INCREASE HAS COME TRUE HOWEVER THE OFFICIAL DECLINED TO COMMENT ON THE COMPANY'S FINANCIAL PERFORMANCE IN EITHER THE FISCAL YEAR ENDED MARCH 31 OR THE CURRENT YEAR SHE SAID THE COMPANY ON JUNE 3 WILL REPORT ON THE RECENTLY ENDED FISCAL YEAR AND WILL ALSO DISCUSS THE CURRENT YEAR THE LAST TIME KLM DISCUSSED ITS FINANCES IN DETAIL WAS FEBRUARY WHEN IT REPORTED A NET LOSS OF 4378 MILLION GUILDERS FOR ITS THIRD QUARTER AND A NET LOSS OF 2293 MILLION GUILDERS FOR THE FIRST NINE MONTHS OF THE FISCAL YEAR THOSE NUMBERS REFLECT 305 MILLION GUILDERS OF EXTRAORDINARY CHARGES RELATED TO A WRITEOFF OF THE COMPANY'S MINORITY STAKE IN ITS STRUGGLING US AFFILIATE NORTHWEST AIRLINES INC THE LOSSES CAME DESPITE A 12 TO 13 RISE IN PASSENGER AND FREIGHT VOLUME AS MEASURED BY TOTAL AIRLINE TRAFFIC ON THURSDAY THE TRANSPORT ARM OF THE DUTCH FEDERATION OF LABOR UNIONS SAID KLM'S THIRDQUARTER PROBLEMS ARE CONTINUING THE UNION ADDED THAT IT FEELS THE COMPANY REQUIRES ONE BILLION GUILDERS OF CAPITAL TO OFFSET LOSSES AND TO FUND KLM'S EXPANSION STRATEGY THE AIRLINE ON FRIDAY CATEGORICALLY DENIED THAT IT NEEDS CAPITAL ITS SPOKESWOMAN SAID CONTINUING COSTCUTTING PROGRAMS ARE INTENDED TO FREE UP MONEY SHE ALSO SAID THE COMPANY WON'T AGREE TO THE UNION'S OFFER OF PAY AND PENSION CONCESSIONS IN EXCHANGE FOR A CASH INFUSION BY THE GOVERNMENT AND OTHER SHAREHOLDERS KLM IS 38 OWNED BY THE STATE 9305240190 930524 MACANDREWS & FORBES SAYS IT PLANS OFFERING OF COLEMAN CO DEBT NEW YORK MACANDREWS & FORBES HOLDINGS INC CONTROLLED BY INVESTOR RONALD PERELMAN SAID IT WILL OFFER 1203 MILLION OF CONVERTIBLE DEBT IN ITS COLEMAN CO CAMPINGGEAR UNIT BY ISSUING LIQUID YIELD OPTION NOTES MACANDREWS & FORBES WHICH ALSO CONTROLS COSMETICS MAKER REVLON GROUP SAID IT EXPECTS TO RECEIVE PROCEEDS OF ABOUT 1157 MILLION WHICH WILL BE USED TO REPAY DEBT OF A UNIT INCURRED IN CONNECTION WITH THE ACQUISITION OF COLEMAN ANY REMAINING NET PROCEEDS WILL BE DISTRIBUTED TO MACANDREW & FORBES THE OFFERING IS BEING MADE BY THE COMPANY'S COLEMAN WORLDWIDE CORP UNIT MACANDREWS & FORBES CURRENTLY OWNS 82 OF COLEMAN CO'S OUTSTANDING SHARES LIQUID OPTION NOTES COMMONLY KNOWN AS LYONS ARE ZEROCOUPON CONVERTIBLE BONDS THAT ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE AND DON'T PAY ANY ANNUAL INTEREST THE YIELD DERIVES FROM THE PRICE APPRECIATION THAT OCCURS AS THE LYON ADVANCES TOWARD MATURITY LIKE OTHER CONVERTIBLE BONDS A LYON CAN BE SWAPPED FOR A PREDETERMINED NUMBER OF SHARES OF THE ISSUING COMPANY'S COMMON STOCK AND IN A SPECIAL WRINKLE LYONS HAVE A POPULAR PUT OPTION THAT ALLOWS THE INVESTOR TO SELL THEM BACK TO THE ISSUER AT CERTAIN INTERVALS USUALLY AFTER FIVE YEARS AND THEN 10 YEARS MACANDREW & FORBES' LYONS HAVE AN AGGREGATE PRINCIPAL AMOUNT AT MATURITY IN 2013 OF 500 MILLION THE YIELD TO MATURITY IS 725 PER YEAR COMPUTED ON A SEMIANNUAL BOND EQUIVALENT BASIS EACH LYON CAN BE EXCHANGED FOR 7853 COLEMAN SHARES A 135 PREMIUM TO THE COLEMAN CLOSING PRICE ON THE DATE OF THE OFFERING MERRILL LYNCH & CO WHICH INVENTED LYONS IN 1985 AND IS THE UNDERWRITER FOR THE OFFERING HAS A 30DAY OPTION TO BUY AS MUCH AS AN ADDITIONAL 75 MILLION PRINCIPAL AMOUNT AT MATURITY OF LYONS COLEMAN SHARES CLOSED DOWN 50 CENTS TO 2650 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY 9305240189 930524 PEPPERAND SALT FOR OCCASIONAL URBAN RENEWAL OF THE HOLE SITUATION 9305240188 930524 REVIEW & OUTLOOK EDITORIAL HACKNEY WATCH IT WAS INEVITABLE THAT THE TWO SENTENCES HILLARY CLINTON UTTERED ABOUT FREE SPEECH IN A COMMENCEMENT ADDRESS LAST WEEK WOULD OVERSHADOW ALL ELSE IN THAT TALK INEVITABLE BECAUSE THE SPEECH WAS DELIVERED AT THE UNIVERSITY OF PENNSYLVANIA WHERE FREEDOM OF EXPRESSION AS WELL AS SIMPLE SANITY HAVE COME UNDER A DEGREE OF ASSAULT THAT HAS FOCUSED ALL EYES ON THAT INSTITUTION WE MUST ALWAYS UPHOLD THE IDEA OF OUR COLLEGES AS INCUBATORS OF IDEAS AND AS HAVENS FOR FREE SPEECH AND FREE THOUGHT THE FIRST LADY TOLD THE GRADUATES WE HAVE TO BELIEVE SHE WENT ON TO ADD THAT IN THE FREE EXCHANGE OF IDEAS JUSTICE WILL PREVAIL OVER INJUSTICE THESE POINTED REMARKS LIKE THE POLITICALLY MODERATE NAMES APPEARING ON THE PRESIDENT'S LIST OF SUPREME COURT NOMINEES MAY BE PART OF A LARGER EFFORT SIGNALING THAT MR CLINTON'S ADMINISTRATION IS MOVING TOWARD THE CENTER BUT WHATEVER THEIR CAUSE THEY SENT A MESSAGE SINGULARLY RELEVANT TO THIS UNIVERSITY AND ITS PRESIDENT SHELDON HACKNEY MR CLINTON'S NOMINEE TO HEAD THE NATIONAL ENDOWMENT FOR THE HUMANITIES THE STORY OF THE PENN ADMINISTRATION'S LUDICROUS PROSECUTION OF A RACE HARASSMENT CASE AGAINST FRESHMAN EDEN JACOBOWITZ FOR CALLING SOME NOISY BLACK SORORITY STUDENTS WATER BUFFALO IS TOO WELL KNOWN TO NEED RECOUNTING LATE DEVELOPMENTS IN THE CASE HAVEN'T DONE MUCH TO BURNISH THE PENN ADMINISTRATION'S REPUTATION ON MAY 14 A UNIVERSITY BOARD MEETING BEHIND CLOSED DOORS REFUSED TO DISMISS THE CASE AGAINST MR JACOBOWITZ CITING CONCERNS ABOUT CONFIDENTIALITY THE ADMINISTRATION DEMANDED THAT NO MEMBER OF THE UNIVERSITY COMMUNITY PRESENT INCLUDING MR JACOBOWITZ'S ADVISER PROFESSOR ALAN KORS COULD SAY WHAT HAD HAPPENED HAVING IMPOSED THIS GAG ORDER THE ADMINISTRATION THEN ISSUED A STATEMENT ASSURING ALL THAT IT HAD ISSUED NO GAG ORDER THE STATEMENT WENT ON TO SAY IN OFFICIAL LANGUAGE THAT FACULTY AND OTHERS WHO WERE PRESENT REMAIN UNDER ORDERS TO KEEP THEIR MOUTHS SHUT ABOUT THOSE PROCEEDINGS PROFESSOR KORS KNEW WHEREOF HE SPOKE WHEN HE TOLD A REPORTER LATER THE UNIVERSITIES ARE BECOMING INCREASINGLY SURREAL ANOTHER SURREAL CASE REFLECTIVE OF THE ATMOSPHERE AT PENN CULMINATED IN THE SUSPENSION OF SECURITY OFFICER DONALD FITZGERALD IT INVOLVED THE RECENT THEFT OF THE ENTIRE PRESS RUN OF THE STUDENT PAPER THE DAILY PENNSYLVANIAN BY A GROUP OF BLACK STUDENTS AGGRIEVED AT ITS CONTENTS AS DIRECTOR OF SECURITY AND HEAD OF MAINTENANCE FOR PENN'S UNIVERSITY MUSEUM OF ARCHAEOLOGY AND ANTHROPOLOGY WHICH CONTAINS PRICELESS PIECES MR FITZGERALD WAS NATURALLY CONCERNED ON SEEING TWO WOMEN STUDENTS RUSH OUT OF THE BUILDING CARRYING THREE LARGE PLASTIC BAGS WHEN HE CALLED FOR THEM TO STOP THE WOMEN RAN INTO ANOTHER BUILDING WHEREUPON MR FITZGERALD BARRICADED THE DOOR WITH HIS BODY THEIR BAGS IT TURNED OUT CONTAINED THE COPIES OF THE STUDENT PAPER WHICH HAD BEEN LEFT AT THE MUSEUM ONE OF THE PAPER'S DISTRIBUTION CENTERS THE SECURITY OFFICER OF COURSE HAD NO IDEA WHAT WAS IN THE BAGS WHEN HE APPREHENDED THEM THE STUDENTS WERE TAKEN AWAY TO THE CAMPUS POLICE STATION THE DAY AFTER MR FITZGERALD WHO ATTESTS HE NEVER TOUCHED THE STUDENTS WAS INFORMED THAT THEY WERE CHARGING HIM WITH ASSAULT THE UNIVERSITY INSTANTLY SUSPENDED HIM WITHOUT A HEARING FROM HIS JOB AS DIRECTOR OF MUSEUM SECURITY A MONTH LATER HE STILL REMAINS ON SUSPENSION IN PENN'S SURREAL WORLD APPARENTLY PERFORMING ONE'S WORK AS CHIEF OF SECURITY NOW REQUIRES LOOKING THE OTHER WAY WHEN IT LOOKS AS IF A THEFT IS IN PROGRESS IN PROCEEDING WITH THE WATER BUFFALO PROSECUTION MR HACKNEY AND HIS JUDICIAL INQUIRY OFFICER ROBIN READ HAVE SUCCEEDED IN MAKING THE PENN ADMINISTRATION AN OBJECT OF NATIONAL IF NOT INTERNATIONAL DERISION SOME EVENT LIKE THIS WAS BOUND TO COME ALONG THAT WOULD SUM UP WITH BLAZING CLARITY THE MALIGNANCY NOW REIGNING IN OUR UNIVERSITIES UNDER THE BANNER OF MULTICULTURALISM AND SPEECH AND HARASSMENT CODES SENSITIVITY TRAINING SEMINARS AND THE REST FOR SOME TIME NOW ALL BUT ITS MOST DETERMINED OPPONENTS HAVE BEEN INTIMIDATED INTO SILENCE WE MAY NOT HAVE REACHED THE TURNING POINT IN THE BATTLE TO RESTORE DEMOCRACY TO THE CAMPUSES BUT EVENTS LIKE THOSE AT PENN ARE CERTAINLY HAVING A LIBERATING EFFECT A WRITER FOR THE HARVARD CRIMSON FOR ONE ARGUED LAST WEEK THAT BY REFUSING THE OFFER OF A GUILTY PLEA AND CHOOSING INSTEAD TO FACE A TRIAL WHICH COULD END IN HIS EXPULSION 18YEAROLD FRESHMAN EDEN JACOBOWITZ SHOWED A DEGREE OF COURAGE NOT FOUND IN THE UNIVERSITY PRESIDENT THE PIECE ALSO SAID THAT MR HACKNEY'S COWARDLY REFUSAL TO END A KAFKAESQUE TRIAL OF LIES INNUENDO AND GROSS STUPIDITY HAD SHAMED THE UNIVERSITY OF PENNSYLVANIA BRICKBATS TO PRESIDENT CLINTON FOR NOMINATING THIS GUTLESS MAN TO HEAD THE NATIONAL ENDOWMENT FOR THE HUMANITIES A GREAT MANY PEOPLE ARE BEGINNING TO SUSPECT WITH CAUSE THAT MR HACKNEY'S CONCERN WITH THE FATE OF HIS NOMINATION HAS PLAYED MORE THAN A LITTLE ROLE IN PENN'S DECISION TO POSTPONE EDEN JACOBOWITZ'S TRIAL WHOSE OUTCOME COULD BRING CAMPUS DEMONSTRATIONS TILL THE FALL BY THAT TIME THE CONFIRMATION HEARINGS BEFORE THE LABOR AND HUMAN RESOURCES COMMITTEE WOULD BE SAFELY OVER HILLARY RODHAM CLINTON'S ENDORSEMENT OF FREE SPEECH THOUGH BRIEF WAS WELCOME WE TRUST THE PRESIDENT'S NOMINEE WAS LISTENING THE FIRST LADY THEN WENT ON TO RECITE THE STANDARD LITANY ABOUT THE NEED TO CELEBRATE OUR DIVERSITY BUT IT IS THIS GOAL OF DIVERSITY AS INTERPRETED BY THE FORCES OF THE POLITICALLY CORRECT THAT IS AT THE ROOT OF THE ETHNIC TENSIONS AND ATTACKS ON SPEECH ON CAMPUSES THROUGHOUT THE US MANY ACADEMICS OF ALL POLITICAL STRIPES HAVE TAKEN TO POINTING THIS OUT LATELY THE FIRST LADY MAY WANT TO DO SOME MORE THINKING ON WHAT DIVERSITY'S CELEBRATION IN FACT HAS DONE TO FREE SPEECH AND INQUIRY PERHAPS THEN SHE COULD DEVOTE A WHOLE COMMENCEMENT SPEECH TO THE SUBJECT SOMETIME SOON 9305240187 930524 STUDY IS SOUGHT ON MUTUAL FUNDS BANKING SYSTEM BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ SOUGHT A CONGRESSIONAL STUDY INTO WHETHER THE GROWTH OF MUTUAL FUNDS IS THREATENING THE SOUNDNESS OF THE BANKING SYSTEM INVESTMENT IN MUTUAL FUNDS IN RECENT YEARS HAS EXPLODED REPRESENTING A MASSIVE FINANCIAL HEMORRHAGE FROM BANK AND THRIFT DEPOSIT ACCOUNTS THE TEXAS DEMOCRAT SAID HE ASKED THE GENERAL ACCOUNTING OFFICE AN ARM OF CONGRESS TO DETERMINE WHETHER THE FUNDS FLIGHT IS WORSENING A CREDIT CRUNCH BY REDUCING MONEY THAT BANKS HAVE AVAILABLE FOR LENDING MR GONZALEZ NOTED THAT INVESTMENTS IN MUTUAL FUNDS UNLIKE BANK OR SAVINGSANDLOAN DEPOSITS AREN'T FEDERALLY INSURED AND HE WARNED THAT FEDERAL DEPOSIT INSURANCE CORP PROJECTIONS OF DEPOSITINSURANCE PREMIUMS WHICH ARE BASED ON BANK AND S&L DEPOSITS COULD BE COMPLETELY OFF THE MARK IF MUTUAL FUNDS CONTINUE TO GROW AT THE PRESENT RATE INVESTMENTS IN OPENEND MUTUAL FUNDS WHICH ALLOW INDIVIDUALS TO BUY OR SELL FUND SHARES AT ANY TIME HAVE RISEN TO 17 TRILLION FROM 1 TRILLION IN EARLY 1990 AFTER GROWING TENFOLD IN THE 1980S SAID ERIC KANTER A SPOKESMAN FOR THE INVESTMENT COMPANY INSTITUTE THE WASHINGTONBASED TRADE GROUP FOR MUTUAL FUNDS ABOUT 30 OF THE CURRENT TOTAL IS IN STOCK FUNDS MR KANTER SAID THAT ALTHOUGH MUTUAL FUNDS AREN'T INSURED THEY ARE HEAVILY REGULATED BY THE SECURITIES AND EXCHANGE COMMISSION MR GONZALEZ HOWEVER ARGUED THAT BANKS AND THRIFTS UNDERGO MORE RIGOROUS REGULATORY SCRUTINY AND HE SAID CUSTOMERS WHO BUY MUTUALFUND SHARES FROM A BANK OFTEN DON'T KNOW THAT THE INVESTMENTS AREN'T FEDERALLY INSURED THE GROWING EASE WITH WHICH BANK CUSTOMERS CAN SHIFT MONEY DIRECTLY FROM DEPOSITS TO MUTUAL FUNDS MAY BE ONE REASON THE MONEY SUPPLY IS GROWING UNEXPECTEDLY SLOWLY THE FEDERAL RESERVE SAID RECENTLY MOST MUTUAL FUNDS AREN'T REFLECTED IN TRADITIONAL MONEYSUPPLY MEASURES 9305240186 930524 AUTOMOBILES BY KRYSTAL MILLER AUTO MAKERS MOVING BEYOND REARDOOR SAFETY LOCKS ARE SPENDING MORE TIME AND MONEY TO ACCOMMODATE THE SAFETY AND COMFORT NEEDS OF CHILDREN GENERAL MOTORS OFFERS ADJUSTABLE REAR SHOULDER BELTS THAT CAN BE REPOSITIONED AWAY FROM A CHILD'S FACE AND NECK IN THE EVENT OF AN ACCIDENT THE ADJUSTABLE BELT KEEPS CHILDREN MORE SECURELY RESTRAINED THAN A CONVENTIONAL BELT THE AUTO MAKER SAYS THE BELT IS MORE COMFORTABLE BECAUSE IT ISN'T SCRAPING THE CHILD'S FACE AND NECK SEATBELT USAGE IS AFFECTED BY HOW COMFORTABLE THE OCCUPANT IS IN THE SAFETY BELT SAYS JOHN COHOON CHIEF ENGINEER OF GM'S LANSING AUTOMOTIVE DIVISION GM'S PONTIAC DIVISION OFFERS A POWER SLIDING DOOR ON THE TRANS SPORT ALLPURPOSE VAN THAT REVERSES DIRECTION WHEN OBSTRUCTED THE AUTO MAKER SAYS THE FEATURE PROTECTS CHILDREN FROM HAVING THEIR HANDS SMASHED BY THE DOOR CHRYSLER OFFERS INTEGRATED CHILD SEATS IN ITS MINIVANS THE AUTO MAKER SAYS THE INTEGRATED SEATS AREN'T TOSSED ABOUT IN A COLLISION AS CONVENTIONAL CHILD SEATS CAN BE EVEN WHEN STRAPPED DOWN DEMAND FOR MINIVANS WITH THE INTEGRATED SEATS HAS BEEN ROBUST THE AUTO MAKER EXPECTED TO SELL 15 OF ITS MINIVANS WITH THE SEATS INSTEAD ABOUT 25 OF ALL CHRYSLER MINIVANS SOLD ARE EQUIPPED WITH INTEGRATED CHILD SEATS SUCH STRONG DEMAND PROMPTED CHRYSLER TO INSTALL THEM IN ITS LH SEDANS LAST NOVEMBER SOME CARS BUILT BY NISSAN MOTOR ARE EQUIPPED WITH AN AUTOMATIC LOCKING SEATBELT RESTRAINT THAT FASTENS THE SAFETY BELT SECURELY AROUND A CHILD'S CAR SEAT THE AUTO MAKER SAYS THE DEVICE HELPS PREVENT THE SEAT FROM SLIPPING OR TIPPING OVER IN AN ACCIDENT OR QUICK STOP NISSAN OWNERS' MANUALS ALSO HAVE A SECTION DESCRIBING THE PROPER WAY TO INSTALL CONVENTIONAL CHILDSAFETY SEATS MOREOVER THE AUTO MAKER'S SUNROOFS AUTOMATICALLY STOP FOUR INCHES SHY OF THE SHUT POSITION DRIVERS MUST PUSH THE CONTROL BUTTON A SECOND TIME TO CLOSE THE SUNROOF CONSUMERS ARE DEMANDING CHILD SAFETY DEVICES AND MORE AND MORE MANUFACTURERS ARE OFFERING THEM SAYS BARRY FELRICE ASSOCIATE ADMINISTRATOR FOR RULE MAKING AT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION IN WASHINGTON THE MARKET IS AT WORK MORE CAR COMPANIES TRY TO WOO LUXURYCAR BUYERS BY ADDING PLUSH SPORTUTILITY VEHICLES TO THEIR LINEUPS CHRYSLER ALREADY OFFERS THE JEEP GRAND CHEROKEE AND THE ROVER GROUP UNIT OF BRITISH AEROSPACE SELLS RANGE ROVER LUXURY SPORTUTILITY VEHICLES FORD MOTOR MEANWHILE SELLS A LUXURY VERSION OF ITS EXPLORER INDUSTRY ANALYSTS SAY THIS IS JUST THE BEGINNING DAIMLERBENZ FOR EXAMPLE RECENTLY SAID IT WILL BUILD A LUXURY SPORTUTILITY VEHICLE AT THE ASSEMBLY PLANT MERCEDES PLANS TO ESTABLISH IN THE US NISSAN'S INFINITI DIVISION IS SAID TO BE CONSIDERING SUCH A VEHICLE FOR THE US MARKET MOST AUTO MAKERS WILL PRICE THESE VEHICLES BELOW 40000 ANALYSTS SAY CHRYSLER'S JEEP GRAND CHEROKEE IS PRICED AT 28570 FORD'S EXPLORER AT 27422 MERCEDES SAYS ITS SPORTUTILITY VEHICLE WILL COST 20000 TO 30000 THE TREND IS TO PROVIDE MORE LUXURIOUS SPORT UTILITIES THAT ARE NOT VERY EXPENSIVE SAYS CHRISTOPHER CEDERGREN AN AUTO ANALYST WITH AUTOPACIFIC GROUP SANTA ANA CALIF AS MORE AUTO MAKERS ENTER THE MARKET THEY WILL BE UNDER HEAVIER PRESSURE TO KEEP PRICES COMPETITIVE FOR EXAMPLE THE RANGE ROVER STARTS AT 44500 TO MAKE IT MORE AFFORDABLE LAND ROVER RECENTLY STARTED A LEASE PROGRAM AIMED AT KEEPING MONTHLY PAYMENTS LOW BUT ANALYSTS FORESEE LIMITED GROWTH POTENTIAL AT THE HIGH END OF THE SPORTUTILITY MARKET BY 1996 THE MARKET WILL LIKELY BE CROWDED WHICH MEANS IT WILL BE A LESS PROFITABLE SEGMENT SAYS SCOTT MERLIS AN AUTO ANALYST WITH MORGAN STANLEY BUT FOR THE NEXT TWO YEARS IT WILL BE A VERY GOOD SEGMENT TO BE IN FOR DECADES MOST FAMILIES WHO NEEDED A ROOMY VEHICLE BOUGHT A STATION WAGON BUT DURING THE 1980S THE POPULARITY OF NEWLY CREATED MINIVANS AND SPORTUTILITY VEHICLES SEEMINGLY LEFT WAGONS AT THE END OF THE ROAD BUT THE STATION WAGON HAS STAGED A SLIGHT COMEBACK THOUGH MINIVANS AND SPORTUTILITY VEHICLES HAVE SURGED IN POPULARITY LAST YEAR WAGON SALES ROSE 7 TO 385000 VEHICLES FROM 1991 WHAT'S MORE THE NUMBER OF PRODUCTS IN THE MARKET HAS EXPANDED GREATLY WAGON BUYERS CAN NOW GET ANYTHING FROM A FUNCTIONAL SUBARU TO A LUXURIOUS MERCEDES MOST OF THE RESURGENCE IN THE WAGON MARKET ANALYSTS SAY HAS COME FROM BABY BOOMERS WHO WANT ROOMY VEHICLES THAT LOOK AND HANDLE MORE LIKE CARS THAN MINIVANS OR TRUCKS THE DEMAND FOR STYLISH WAGONS HAS FORCED AUTO COMPANIES TO ABANDON TRADITIONAL BULKY DESIGNS IN FAVOR OF SLEEK CURVY MODELS WHEN IT COMES TO STYLING SEDANS ONCE HAD A LOCK ON THE MARKET SAYS PAUL MOREL FORD'S MARKETINGPLANS MANAGER NOWADAYS MANY CUSTOMERS CONSIDER A VARIETY OF VEHICLES STYLISH INCLUDING SPORTUTILITY VEHICLES PICKUPS AND HIGHLY STYLED FAMILY WAGONS FORD SOLD 182000 WAGONS LAST YEAR MORE THAN ANY OTHER AUTO MAKER MORE WAGON ENTRIES ARE ON THE WAY THIS FALL MERCEDES WILL INTRODUCE AN ENTRYLEVEL MODEL AND VOLVO WILL ROLL OUT ITS 850 WAGON FORD'S JAGUAR CARS LTD MEANWHILE HAS DEVELOPED A WAGON PROTOTYPE THE JEEP AND EAGLE DIVISION OF CHRYSLER HOPES TO ATTRACT CUSTOMERS THROUGH THEIR PERSONAL COMPUTERS THE DIVISION NOW SELLS A 695 COMPUTER DISK THAT GIVES CUSTOMERS A DETAILED LOOK AT ALL OF THE DIVISION'S PRODUCTS INCLUDING SAFETY FEATURES AND PRICES IN RESPONSE TO AUTORELATED VIOLENCE SUCH AS CARJACKINGS O'GARAHESS & EISENHARDT ARMORING FOR ABOUT 40000 WILL COAT THE INSIDE OF A VEHICLE WITH LIGHT FIBROUS ARMOR THAT PROTECTS AGAINST HANDGUNS AND AUTOMATIC WEAPONS THE FAIRFIELD OHIO COMPANY EXPECTS TO EQUIP 20 TO 25 VEHICLES IN THE US THIS YEAR 9305240184 930524 WHO'S NEWS SONY CORP SONY CORP CULVER CITY CALIF JEAN BONINI 44 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT LABOR RELATIONS OF SONY PICTURES ENTERTAINMENT A MOTION PICTURE AND TELEVISION UNIT OF SONY CORP MS BONINI WAS DIRECTOR OF LABOR RELATIONS AT SONY PICTURES 9305240183 930524 BUSINESS BRIEF STATE ORDERS KENTUCKY CENTRAL LIFE TO STOP ISSUING NEW INSURANCE POLICIES LEXINGTON KY THE KENTUCKY STATE INSURANCE COMMISSIONER ORDERED KENTUCKY CENTRAL LIFE INSURANCE CO TO STOP WRITING NEW POLICIES AND RESTATED THE COMPANY'S EARNINGS FOR THE FIRST NINE MONTHS OF 1992 TO SHOW LOSSES INSTEAD OF GAINS KENTUCKY CENTRAL SEIZED BY STATE REGULATORS IN FEBRUARY HAD A LOSS OF 96 MILLION OR 82 CENTS A SHARE FOR THE NINE MONTHS ENDED SEPT 30 ACCORDING TO THE RESTATED EARNINGS REVENUE WAS 257 MILLION PREVIOUSLY THE COMPANY HAD REPORTED A GAIN OF 163 MILLION OR 138 A SHARE ON REVENUE OF 2848 MILLION THE RESTATED EARNINGS REFLECT A MORE REALISTIC AND CURRENT APPRAISAL OF THE INSURANCE COMPANY'S MORTGAGE LOANS SAID MICHAEL F CUSCADEN SPECIAL DEPUTY REHABILITATOR APPOINTED BY THE STATE TO RUN THE COMPANY HE SAID KENTUCKY CENTRAL IS SOLVENT AND CONTINUES TO MAKE FULL PAYMENTS ON ITS POLICIES IN FORCE HE SAID KENTUCKY CENTRAL IS IN TALKS WITH ABOUT A DOZEN SERIOUSLY QUALIFIED FINANCIAL COMPANIES THAT WANT TO BUY IT HE HOPES FOR A PRELIMINARY AGREEMENT WITH A SUITOR IN JULY OR AUGUST REGULATORS SAY THAT BASED ON THEIR AUDIT SO FAR KENTUCKY CENTRAL HAS A CAPITAL DEFICIENCY OF ABOUT 70 MILLION WHOEVER BUYS THE COMPANY WOULD HAVE TO INVEST ENOUGH MONEY TO SHORE UP THAT DEFICIENCY AND MEET THE CAPITAL REQUIREMENTS OF ANY STATES IN WHICH IT OPERATES KENTUCKY CENTRAL ONCE OPERATED IN 49 STATES BUT HAS LOST PERMISSION TO DO BUSINESS IN MOST OF THEM SINCE IT WAS SEIZED BEFORE THE ORDER FROM THE INSURANCE COMMISSIONER'S OFFICE THE COMPANY WAS WRITING NEW POLICIES IN ONLY FIVE STATES KENTUCKY MASSACHUSSETTS DELAWARE MINNESOTA AND NEW JERSEY KENTUCKY CENTRAL HAS SCRAMBLED FOR NEW SOURCES OF CAPITAL TO ABSORB LOSSES IN ITS REAL ESTATE PORTFOLIO IT WAS SEIZED AFTER ONE POTENTIAL INVESTOR WHR MANAGEMENT CO OF NEW YORK WITHDREW AN OFFER TO INVEST 100 MILLION PROMPTING A RUN BY KENTUCKY CENTRAL'S POLICYHOLDERS 9305240182 930524 DOT SEEKS RULES TO CUT ACCIDENTS BY FISHING VESSELS BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TRANSPORTATION DEPARTMENT CALLED FOR NEW LICENSING REQUIREMENTS TO REDUCE ACCIDENTS INVOLVING COMMERCIAL FISHING VESSELS UNDER REGULATIONS PROPOSED TO CONGRESS BY TRANSPORTATION SECRETARY FEDERICO PENA ALL BUT THE SMALLEST COMMERCIAL FISHING BOATS WOULD HAVE A LICENSED OPERATOR ABOARD KNOWN AS A MASTER UNDER PRESENT GUIDELINES ONLY 400 OR SO LARGER FISHING VESSELS THOSE WEIGHING 200 GROSS TONS OR MORE NEED MASTERS AT THE HELM THE PROPOSAL INTENDED TO REDUCE THE 250 VESSEL ACCIDENTS AND 100 DEATHS EACH YEAR IN THE INDUSTRY WILL COST THE INDUSTRY AS MUCH AS 60 MILLION OVER FIVE YEARS IF CONGRESS APPROVES THE PROPOSAL THE COAST GUARD FORECASTS THAT 57000 OPERATORS WILL NEED A REFRESHER COURSE TO RECEIVE THEIR MASTERS LICENSES THE LICENSES WOULD BE GOOD FOR FIVE YEARS BUT THEY WOULD COST EACH OPERATOR ROUGHLY 500 TO 1000 INCLUDING FEES FOR SAFETY AND VESSELMAINTENANCE TRAINING EVALUATIONS LICENSING A PHYSICAL AND POSSIBLY EVEN A DRUG TEST COAST GUARD LT CMDR DAVE PAXTON WHO WORKED WITH THE CONGRESSIONAL ADVISORY COMMITTEE THAT DRAFTED THE LICENSING PROJECT SAID THE TRAINING WILL MAKE MARINERS MORE AWARE OF THEIR VESSELS AND THEIR ENVIRONMENTS WE WANT THEM TO RESPOND A LITTLE FASTER AND MORE EFFICIENTLY TO PREVENT PROBLEMS FROM OCCURRING NOT ALL COMMERCIAL FISHERS ARE BITING TONY FORD SAFETY DIRECTOR OF THE SEATTLEBASED ARCTIC ALASKA FISHERIES INC SAID MANY SMALL INDEPENDENT OPERATORS WILL LIKELY RAISE CONCERNS ABOUT THE NEW MEASURES' COSTS IF YOU DON'T LIVE NEAR LARGE POPULATION CENTERS MR FORD SAID YOU MIGHT HAVE TO TRAVEL A GREAT DISTANCE AT GREAT EXPENSE ANTICIPATING SUCH CONCERNS THE COAST GUARD SEEMS AMENABLE TO GRANDFATHERING PRESENT OPERATORS OR PERHAPS ALLOWING RETRAINING AT PRIVATE INSTITUTIONS AND THROUGH THE MAIL OVERALL THE INDUSTRY SEEMS TO SUPPORT THE IDEA OF IMPROVING COMMERCIAL FISHINGVESSEL SAFETY THROUGH OPERATOR RETRAINING LESLIE HUGHES EXECUTIVE DIRECTOR OF THE NORTH PACIFIC FISHING VESSEL OWNERS ASSOCIATION SAID I SEE IT AS A NEEDED IMPROVEMENT AND NOTED THAT SOME FISHERS DON'T UNDERSTAND HOW TO DEPLOY THEIR LIFE RAFTS THE HOUSE COMMITTEE ON MERCHANT MARINE AND FISHERIES IS EXPECTED TO HOLD HEARINGS ON THE NEW REGULATIONS IN JUNE 9305240181 930524 TECHNOLOGY A SPECIAL REPORT FINDING AND FEEDING WANTED GENIUS FIRST COMPANIES IDENTIFY THE CREATIVE LEADERS OF TOMORROW THEN THEY WOO THEM BY THOMAS E WEBER RECRUITMENT IN ANY INDUSTRY IS HARD WORK A PERIODIC PARADE OF INTERVIEWS OF EAGER YOUNG FACES THAT MAY BELONG TO THE STARS OF TOMORROW BUT FOR HIGHTECHNOLOGY COMPANIES RECRUITING ISN'T JUST HARD WORK IT'S INDISPENSABLE AND IT'S ENDLESS COMPANIES KNOW THAT MANY OF THE BEST IDEAS FOR INNOVATION COME FROM THEIR NEWER AND YOUNGER EMPLOYEES AND THAT RAPID TECHNOLOGICAL CHANGES MAKE STANDING STILL A SUREFIRE WAY TO AN EARLY DEATH IF THEY CAN JUST GET THE JUMP ON THE COMPETITION FIND THE STARS THAT NOBODY ELSE HAS FOUND THEY WILL HAVE THE UNBEATABLE EDGE THE KEY RAW MATERIAL IN TECHNOLOGY IS PEOPLE SAYS NATHAN MYHRVOLD THE TOP RESEARCHER AT MICROSOFT CORP RECRUITING HIGHCALIBER PEOPLE IS ALWAYS A TOP EMPHASIS HERE AND FINDING PEOPLE OF THE RIGHT CALIBER IS HARD IF A COMPANY FAILS TO ATTRACT TOP PEOPLE DR MYHRVOLD ADDS THE FUTURE OF TECHNOLOGY IS LIMITED AT THAT COMPANY FROM THE SMALLEST OF STARTUPS TO BIGGEST OF CORPORATE BEHEMOTHS THE STRATEGIES OF HIGHTECH TALENT SCOUTS ARE MUCH THE SAME WATCH STUDENT PROSPECTS EARLY AND BUILD DURABLE RELATIONSHIPS WE HAVE PHDS WORKING FOR US NOW WHO WERE IDENTIFIED IN HIGH SCHOOL SAYS FRANK JOHNSON WHO MANAGES RESEARCH AND DEVELOPMENT EMPLOYMENT AND UNIVERSITY RELATIONS FOR AMERICAN TELEPHONE & TELEGRAPH CO'S BELL LABORATORIES FOR INSTANCE A CURRENT BELL LABS SUPERVISOR DREW THE COMPANY'S ATTENTION 12 YEARS AGO AS A PROMISING PHYSICS STUDENT STILL IN HIGH SCHOOL HE ZIPPED THROUGH PURDUE UNIVERSITY'S PROGRAM IN ELECTRICAL ENGINEERING ON A BELL LABS SCHOLARSHIP JOINING THE COMPANY UPON GRADUATION IMPRESSED WITH HIS RAPID PROFESSIONAL GROWTH BELL LABS SENT HIM BACK TO PURDUE FOR A MASTER'S DEGREE NOW HE HELPS OVERSEE DEVELOPMENT OF THE COMPANY'S NEW COMPUTER CHIPS THE MOST SUCCESSFUL GENIUSHUNTERS HAVE FIGURED OUT HOW TO INFILTRATE THE CAMPUSES OF TOP UNIVERSITIES MANY OF THESE SCOUTS MAINTAIN TIES WITH COMPUTER AND ENGINEERING DEPARTMENTS THAT FUNCTION AS AN EARLYALERT NETWORK SCOUTS SAY THE CONSTANT CONTACT WITH FACULTY MEMBERS AND FORMER EMPLOYEES OFTEN RESULTS IN ADVANCE INFORMAL NOTICE OF AN UPANDCOMING STUDENT I GET CALLS AND VISITS PARTICULARLY FROM COMPANIES WHERE WE HAVE ALUMNI WORKING SAYS HARRY LEWIS A COMPUTERSCIENCE PROFESSOR AT HARVARD UNIVERSITY SOME COMPANIES SUPPLEMENT THOSE CONTACTS BY ASKING RECENTLY HIRED EMPLOYEES TO REVIEW NAMES OF CURRENT STUDENTS AND POINT OUT EXCEPTIONAL CANDIDATES EACH GENERATION RECRUITS THE NEXT PROF LEWIS SAYS A PERSISTENT PRESENCE ON CAMPUS ALSO HELPS KEEP A COMPANY'S NAME IN THE MINDS OF STUDENTS REINFORCING ITS DESIRABILITY AS A PLACE TO WORK WE WANT TO MAKE SURE THAT PEOPLE KNOW OUR CULTURE WHO WE ARE SAYS KATHY BURKE COLLEGE RELATIONS AND RECRUITING MANAGER FOR HEWLETTPACKARD CO MS BURKE SAYS HER COMPANY MAINTAINS A TARGET LIST OF 65 UNIVERSITIES FOR RECRUITING BY FOCUSING ON THESE SCHOOLS HEWLETTPACKARD LETS THE COLLEGE ADMISSIONS PROCESS DO SOME EARLY SELECTION WORK PERHAPS EVEN MORE IMPORTANT HEWLETTPACKARD SENDS THE SAME TEAMS OF MANAGERS TO SHOW THE FLAG AT THE SAME SCHOOLS YEAR AFTER YEAR THAT CONSISTENCY MS BURKE BELIEVES GIVES RECRUITERS A PRACTICED EYE WHEN REVIEWING RESUMES AND COURSE TRANSCRIPTS WE CULTIVATE RELATIONSHIPS WITH THE FACULTY LOOKING AT THE RESEARCH THAT'S GOING ON MS BURKE EXPLAINS THE MANAGER FOR A PARTICULAR CAMPUS WILL KNOW WHAT IT MEANS TO GET AN 'A' OUT OF A CERTAIN PROFESSOR'S CLASS BUT IDENTIFYING THE HOTTEST PROSPECTS IS ONLY PART OF THE CHALLENGE JUST AS DIFFICULT IS WOOING THEM SOME HAVE TO BE PERSUADED TO GIVE UP DREAMS OF ACADEMIC CAREERS OTHERS EAGER TO EMBRACE THE PRIVATE SECTOR MUST BE PULLED FROM THE SNARES OF RIVAL FIRMS ACCORDING TO SCOUTS AND RECRUITS PAY GENERALLY ISN'T THE DECISIVE FACTOR MANY STUDENTS SAY THEY APPROACH THE RECRUITING PROCESS WITH AN EXPECTATION THAT THEY WILL EARN A REASONABLE RESPECTABLE SALARY BEYOND THAT THEY SAY PAY DOESN'T TEND TO VARY MUCH FROM ONE HIGHTECH COMPANY TO THE NEXT SO CHOICES AMONG OFFERS ARE USUALLY BASED ON THE WORK ENVIRONMENT AND THE TYPES OF PROJECTS AWAITING NEW EMPLOYEES IN SOME CASES EXCESSIVE CONCERN ABOUT COMPENSATION MAY EVEN RAISE SUSPICION AFTER AN INITIAL SCREENING MANY COMPANIES PUT THEIR PROSPECTIVE RECRUITS THROUGH ARDUOUS INTERVIEWS THAT FOCUS ON TECHNICAL QUESTIONS INTERVIEWERS FROM MICROSOFT CORP FOR INSTANCE ARE KNOWN FOR GLANCING AT A RESUME FLIPPING IT OVER THEN HANDING IT BACK TO A STUDENT WITH INSTRUCTIONS TO WRITE A SHORT COMPUTER PROGRAM ON THE SPOT MICROSOFT'S EMPLOYEES CONSTANTLY FACE PROBLEMS THEY HAVE NEVER SEEN BEFORE SAYS JODI DELEON THE COMPANY'S COLLEGE RECRUITING MANAGER AND WE'RE NOT ALWAYS LOOKING FOR A RIGHT ANSWER SHE SAYS A LOT OF TIMES WE'RE MORE INTERESTED IN HOW SOMEONE APPROACHES THE PROBLEM OTHER RECRUITERS THOUGH ARE WARY OF ASKING PROSPECTIVE EMPLOYEES TO PRODUCE ANYTHING ON THE SPUR OF THE MOMENT QUICK QUIZZES THEY'RE CUTE BUT ALL YOU'LL GET IS AN IDENTIFICATION OF HOW FAST SOMEONE CAN THINK ON HIS FEET SAYS ROGER SCHANK AN ARTIFICIALINTELLIGENCE RESEARCHER AT NORTHWESTERN UNIVERSITY TRULY INNOVATIVE SOLUTIONS TO PROBLEMS ARE DIFFICULT TO PRODUCE INSTANTLY HE SAYS PROF SCHANK WHO SCREENS TALENT FOR NORTHWESTERN'S INSTITUTE FOR THE LEARNING SCIENCES TAKES AN APPROACH THAT'S PROBABLY TOO UNORTHODOX FOR MOST CORPORATE MANAGERS AS A TEACHER OF BOTH UNDERGRADUATES AND GRADUATE STUDENTS HE SAYS I CAN TELL YOU THE MOST INNOVATIVE PEOPLE ARE INVARIABLY THE ONES WHO ARE THE WORST STUDENTS WHEN YOU GO AFTER PEOPLE WITH THE BEST GRADES YOU'RE GETTING THE PEOPLE WHO HAVE CONFORMED THE MOST MATCHING THE JOB TO THE STUDENT'S KEENEST INTERESTS CAN PRODUCE SOME OF THE BEST CORPORATE FITS PETER VAN ROY TOOK A JOB WITH DIGITAL EQUIPMENT CORP'S PARIS RESEARCH LABORATORY AFTER COMPLETING HIS PHD AT THE UNIVERSITY OF CALIFORNIABERKELEY HE FOUND THAT HIS WORK SPOKE FOR ITSELF DURING THE RECRUITING PROCESS THERE WAS ONE RESEARCHER AT THE LAB WHO REALLY WANTED TO GET ME ONTO HIS TEAM MR VAN ROY RECALLS THAT RESEARCHER PART OF A GROUP DEVELOPING A NEW COMPUTER LANGUAGE READ MR VAN ROY'S DISSERTATION IN IT MR VAN ROY HAD WRITTEN A COMPILER A SOFTWARE PROGRAM FOR THE PROLOG COMPUTER LANGUAGE THE DIGITAL EQUIPMENT TEAM LEADER HAD FOUND WHAT HE WANTED A BRIGHT EXPERIENCED CANDIDATE WITH A PASSION FOR THE VERY FIELD OF RESEARCH THAT WAS BADLY NEEDED FOR THE PROJECT ALREADY UNDER WAY IN PARIS MR VAN ROY WAS DELIGHTED AS A BELGIAN CITIZEN HE WAS HOPING TO RETURN TO EUROPE AFTER FINISHING AT BERKELEY TO GAIN AN EDGE IN THE RECRUITING COMPETITION SMALLER COMPANIES ALSO RELY ON SUCH TECHNIQUES AS EARLY IDENTIFICATION EARLY CONTACTS AND INTERNSHIPS RICK MINICUCCI IS PRESIDENT OF JRM SOFTWARE A CHANTILLY VA CONCERN WORKING ON MULTIMEDIA AND DESKTOP VIDEOCONFERENCE SYSTEMS MOST MEMBERS OF HIS SMALL STAFF ARE IN THEIR 20S ONE OF THEM KEN BARBIERI CAME TO MR MINICUCCI'S ATTENTION THROUGH A SUMMER INTERNSHIP AT A JRMAFFILIATED COMPANY WHILE EARNING AN ELECTRICAL ENGINEERING DEGREE AT THE UNIVERSITY OF VIRGINIA WATCHING HIM ON THE JOB MR MINICUCCI FOUND THE YOUNG MAN TO BE INTELLIGENT KNOWLEDGEABLE AND ENTHUSIASTIC I SAID 'LET'S KEEP TABS ON THIS GUY' MR MINICUCCI RECALLS HE INVITED MR BARBIERI TO VISIT JRM WHENEVER POSSIBLE DURING SCHOOL BREAKS AND VACATIONS THIS IS A GUY WE'VE NURTURED SINCE HIS SOPHOMORE YEAR SAYS MR MINICUCCI BUILDING THE RELATIONSHIP PAID OFF WHEN GRADUATION CAME LAST YEAR MR BARBIERI PASSED UP AN ATTRACTIVE OFFER FROM AN ESTABLISHED TECHNOLOGY CONSULTING FIRM IN FAVOR OF TINY JRM SOFTWARE IN THEIR MANY CONVERSATIONS MR MINICUCCI STRESSED THE APPEAL OF WORKING FOR A SMALL FASTMOVING COMPANY HE PROMISED THAT JRM WOULD PUT MR BARBIERI RIGHT TO WORK AND GIVE HIM RESPONSIBILITY FOR IMPORTANT DECISIONS THROUGH THE COMPANY'S STOCKINCENTIVE PROGRAM HE COULD ALSO PARTICIPATE SOONER IN ITS SUCCESS MR BARBIERI NOW 22 SAYS THE INSIDE LOOK HE RECEIVED DURING HIS SCHOOLBREAK JOB STINTS WITH JRM COMBINED WITH HIS IMPRESSION OF MR MINICUCCI AS A TALENTED RESEARCHER AND TOLERANT BOSS PERSUADED HIM TO STICK WITH THE SMALL COMPANY THE ENVIRONMENT AT A MUCH LARGER CORPORATION MIGHT BE TOO STIFLING HE FEARED HERE YOU GET THROWN INTO THE FIRE AND YOU HAVE TO PICK THINGS UP REALLY FAST MR BARBIERI SAYS THEY AFFORDED ME A LOT MORE FREEDOM AND I SAW MYSELF COMING IN HERE AND IMMEDIATELY HAVING MORE SAY IF YOU'RE UP TO THE TASK IT'S A GOOD THING KEEPING TOP STUDENTS FROM JOINING RIVAL COMPANIES ISN'T ALWAYS THE CHIEF GOAL SOME PROSPECTS WITH UNCOMMON TALENT ARE SKEPTICAL ABOUT LEAVING THE PRESTIGE OF THE ACADEMIC WORLD DESPITE THE LURE OF HIGHER PAY OUTSIDE AND THE CONTINUING SQUEEZE ON UNIVERSITY RESEARCH GRANTS WITH A LOT OF THESE JOBS IN TERMS OF WHAT YOU'RE ACTUALLY PRODUCING IT DOESN'T HAVE QUITE THE SCIENTIFIC IMPORT AS UNIVERSITY RESEARCH SAYS ARCHAN BASU A HARVARD SENIOR STUDYING APPLIED MATHEMATICS AND COMPUTER SCIENCE MR BASU CONSIDERED JOBS AT SEVERAL HIGHTECHNOLOGY COMPANIES BUT HE FIRST APPROACHED THE RECRUITING PROCESS CAUTIOUSLY MY CONCERNS WERE THAT WORKING IN INDUSTRY WOULD NOT BE AS SUPPORTIVE AS AN ACADEMIC ENVIRONMENT THAT IT WOULDN'T HAVE THE LIBERTY THE FLEXIBLE HOURS THE RESPECT FOR ORIGINALITY HE EXPLAINS AFTER TALKING TO INTERVIEWERS FROM VARIOUS FIRMS HOWEVER MR BASU BEGAN TO FEEL MORE COMFORTABLE ABOUT AN INDUSTRY POSITION IN SEVERAL CASES HE FOUND THAT COMPANIES WERE AWARE OF HIS CONCERNS AND PLEDGED TO BE RESPONSIVE TO THEM HIS FINAL DECISION MR BASU JOINED A FIRM THAT PRODUCES SOFTWARE THAT CREATES MODELS OF FINANCIAL MARKETS LIKE MOST STUDENTS COMPLETING THEIR UNDERGRADUATE EDUCATION OR FINISHING A GRADUATE DEGREE MR BASU SAYS FUTURE EDUCATION IS ANOTHER IMPORTANT FACTOR IN SELECTING A JOB ONE OF MY CONCERNS IS MY LONGTERM ACADEMIC FUTURE HE SAYS I'M THINKING ABOUT WHERE I'M MORE LIKELY TO BUILD SKILLS FOR LATER ON BECAUSE GRADUATE SCHOOL IS CLEARLY IN MY FUTURE STILL FOR THOSE STUDENTS WHO INTEND TO JOIN INDUSTRY FOR A WHILE AND THEN RETURN TO THE ACADEMIC WORLD MAKING THE RETURN TRIP IS OFTEN HARDER THAN THEY EXPECT IF YOU'RE A STUDENT YOU'RE USED TO BEING POOR SAYS DAVID A PATTERSON A COMPUTERSCIENCE PROFESSOR AT BERKELEY A LOT OF PEOPLE THEY GET A JOB THEY GET THIS MONEY AND THEY BUY A CAR THE FRACTION WHO COME BACK TO ACADEMICS IS VERY LOW BUT SUCH EDUCATION CONCERNS ARE ADDRESSED BY MANY HIGHTECH COMPANIES AS THEY TRY TO ENTICE BUDDING GENIUSES HEWLETTPACKARD FOR EXAMPLE OFFERS TUITION REIMBURSEMENT AND ONTHEJOB COURSEWORK IN 1991 THE MOST RECENT YEAR FOR WHICH FIGURES ARE AVAILABLE 5700 HEWLETTPACKARD EMPLOYEES OR ABOUT 10 OF THE COMPANY'S US WORK FORCE PARTICIPATED IN ITS EDUCATIONALASSISTANCE PROGRAM SUPPORTING EDUCATIONAL GOALS IS A BIG PART OF OUR PACKAGE SAYS MS BURKE THE COMPANY'S RECRUITING DIRECTOR WE LIKE TO WORK WITH PEOPLE WHO WANT TO HAVE A FOOT IN BOTH WORLDS MR WEBER IS A REPORTER FOR THE DOW JONES NEWS SERVICE IN NEW YORK 9305240180 930524 BIG JAPANESE SHIPPERS POST FLAT REVENUE MIXED PROFIT FOR YEAR SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S THREE BIG SHIPPING COMPANIES REPORTED ROUGHLY FLAT REVENUE WITH TWO CONCERNS POSTING LOWER UNCONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 AS SLUGGISHNESS IN WORLD TRADE AND A GLUT OF SHIPS ON THE SEAS HURT PERFORMANCE THE LARGEST JAPANESE SHIPPER NIPPON YUSEN KK HAD A 25 SLIP IN PRETAX PROFIT TO 1378 BILLION YEN 1245 MILLION ON A 11 CLIMB IN REVENUE TO 57557 BILLION YEN NET PROFIT ROSE 18 TO 769 BILLION YEN HELPED BY A 2 BILLION YEN REDUCTION IN EXTRAORDINARY LOSSES ON FIXED ASSETS FROM THE PRECEDING YEAR MITSUI OSK LINES HAD A 49 RISE IN PRETAX PROFIT TO 780 BILLION YEN AS REVENUE CLIMBED 09 TO 48517 BILLION YEN NET PROFIT MORE THAN DOUBLED TO 517 BILLION YEN AS THE COMPANY SOLD MORE THAN ENOUGH SECURITIES TO COVER A 1275 BILLION YEN EXTRAORDINARY LOSS FOR LIQUIDATING A FINANCE SUBSIDIARY BUT KAWASAKI KISEN KAISHA LTD POSTED A SHARP 31 DROP IN PRETAX PROFIT TO 118 BILLION YEN ON A 31 REVENUE DECLINE TO 37252 BILLION YEN NET PROFIT SWUNG INTO 128 BILLION YEN LOSS FROM THE PRIOR YEAR'S 362 BILLION YEN PROFIT THE PRETAX PROFIT REPRESENTS OPERATING PROFIT PLUS NONOPERATING PROFIT INCLUDING FINANCIAL INCOME AND EXPENSES THE NET INCOME REPRESENTS PRETAX PROFIT PLUS EXTRAORDINARY GAINS OR LOSSES AND PAYMENTS OF TAXES UNCONSOLIDATED RESULTS ARE THOSE OF THE PARENT ALONE CONSOLIDATED RESULTS INCLUDE THOSE OF SUBSIDIARIES EACH OF THE SHIPPING COMPANIES SAID EARNINGS PERFORMANCE WAS SUPPORTED BY EFFORTS TO CUT COSTS AND STREAMLINE OPERATIONS OVER RECENT YEARS AS WELL AS TO RETAIN MARKET SHARE BY DEVELOPING BROADER SERVICES FOR CUSTOMERS JAPANESE SHIPPERS HAVE LED THE WAY IN INTRODUCING HIGH TECHNOLOGY INFORMATION SYSTEMS WORLDWIDE TO HELP CLIENTS TRACK CARGO AND ALSO ARE ACTIVE IN CONNECTING INLAND TRANSPORT 9305240179 930524 EII HOLDINGS' PLAN FOR REORGANIZATION IS FOCUS OF HEARINGS NEW YORK CONFIRMATION HEARINGS BEGIN TODAY IN COURT ON THE EMERGENCE FROM BANKRUPTCY OF EII HOLDINGS INC THE PARENT OF SAMSONITE LUGGAGE CULLIGAN WATER SYSTEMS AND MCGREGOR APPAREL FILED MODIFICATIONS TO ITS REORGANIZATION PLAN LATE FRIDAY THE COMPANY PROPOSED SEVERAL CHANGES TO THE PLAN IT FILED IN FEBRUARY THE ORIGINAL PLAN WAS VOTED DOWN ON MAY 10 BY ONE PRINCIPAL CREDITOR CARL ICAHN AT TODAY'S HEARING SENIOR CREDITORS ARE EXPECTED TO PUSH FOR ACCEPTANCE OF THE PLAN CONTAINING THE CHANGES THE BIGGEST CHANGE IS A REEVALUATION OF THE PERSHARE PRICE OF 15 MILLION SHARES OF NEW STOCK BY THE COMPANY'S FINANCIAL ADVISERS BEAR STEARNS & CO BEAR STEARNS REVALUED EII NEW STOCK TO 2025 A SHARE ABOUT THE ESTIMATED VALUE OF RESTRUCTURING ANALYSTS UP FROM ABOUT 14 A SHARE IN THE DISCLOSURE STATEMENT ACCORDING TO PEOPLE FAMILIAR WITH THE NEW PLAN THE CHANGE IN PRICE WAS PRIMARILY DUE TO A 40 MILLION LITIGATION SETTLEMENT FROM MCCRORY PARENT CORP A COMPANY THAT LIKE EII HAD ONCE BEEN CONTROLLED BY FINANCIER MESHULAM RIKLIS BEAR STEARNS ALSO ATTRIBUTED ITS REEVALUATION TO THE RISING STOCK MARKET AND A MODEST IMPROVEMENT IN THE COMPANY'S OPERATIONS MR ICAHN WHO OWNS 31 OF THE JUNIOR DEBENTURES WAS INFORMED OF THE REVISIONS IN A PHONE CALL FRIDAY APOLLO ADVISERS WHICH OWNS 24 OF THE SENIOR DEBT AND 27 OF THE JUNIOR DEBT OFFERED MR ICAHN TWO OF THE NINE SEATS ON THE NEW EII BOARD APOLLO WOULD CONTROL THREE SEATS UNDER THE MODIFIED PLAN APOLLO WOULD CONTROL 30 OF THE EQUITY AND MR ICAHN 20 THE MODIFICATIONS WERE NOT WELL RECEIVED BY MR ICAHN IT IS INCONCEIVABLE THAT THE EII BOARD AND THE OFFICIAL CREDITORS COMMITTEE WHO REPRESENT ALL CREDITORS CAN MATERIALLY ALTER THE EQUITY VALUATION WITHOUT ANY PUBLIC MODIFICATION TO THE DISCLOSURE STATEMENTS PRIOR TO THE HEARING SAID MARK RACHEFSKY A MEMBER OF THE ICAHN ORGANIZATION MR ICAHN INTENDS TO DISPUTE THE PLAN AT THE HEARING SET TO BEGIN TODAY MR RACHEFSKY ADDED 9305240178 930524 TECHNOLOGY A SPECIAL REPORT FINDING AND FEEDING AVOIDING RISK VENTURE CAPITALISTS AREN'T LOOKING FOR GENIUSES THESE DAYS THEY'RE LOOKING FOR RESULTS BY KYLE POPE ON VENTURE CAPITALIST TIMOTHY BARROWS'S CHECKLIST OF WHAT MAKES FOR A SUCCESSFUL ENTREPRENEUR ALEXANDER GRAHAM BELL TURNS UP A LOSER FIRST THE INVENTOR OF THE TELEPHONE WOULD BE TOO YOUNG TO PASS MR BARROWS'S MUSTER HIS FAMOUS TELEPHONE MESSAGE TO MR WATSON CAME WHEN BELL WAS 29 WELL BELOW MR BARROWS'S TARGET AGE OF 35 TO 45 YEARS OLD EVEN WORSE THE SCIENTIST HAD ZILCH IN THE WAY OF BUSINESS EXPERIENCE THE MARKET FOR HIS IDEA WAS FUZZY AND HIS ODDBALL ICONOCLASM WOULD BE TOUGH TO SELL TO A CORPORATE BOARD WE'RE LOOKING FOR SOME DEGREE OF PAST SUCCESS THAT IS IDENTIFIABLE SAYS MR BARROWS A VENTURE INVESTOR AT MATRIX PARTNERS IN BOSTON SOMEONE MAY BE VERY VERY BRIGHT WITH A VERY GOOD IDEA BUT THAT ISN'T USUALLY ENOUGH IN FACT MR BARROWS AND OTHER VENTURE CAPITALISTS SAY THE HOLLYWOOD VERSION OF THE LONE INVENTOR THE DRIVEN GENIUS HUDDLED OVER A CLUTTERED DESK AS HE TINKERS WITH THE NEXT GREAT AMERICAN GIZMO HAS BECOME AN UNREALISTIC CLICHE IN FACT WITH AN INCREASINGLY CONSERVATIVE VENTURECAPITAL COMMUNITY AND A RATPACK APPROACH TO INVESTING GENIUS DOESN'T COUNT FOR MUCH THESE DAYS INSTEAD INVESTORS ARE LOOKING FOR POLISH FOR BUSINESS SAVVY AND MOST IMPORTANT FOR PEOPLE WHO CAN DELIVER RESULTS I DON'T THINK A PERSON HAS TO HAVE THICK GLASSES AND WILD HAIR TO HAVE A NEAT IDEA SAYS JOSEPH ARAGONA GENERAL PARTNER OF AUSTIN VENTURES IN AUSTIN TEX MARKETS ARE MOVING SO QUICKLY THAT YOU NEED TO HAVE PEOPLE WHO ALREADY HAVE BEEN SUCCESSFUL YOU CAN'T AFFORD TO GIVE OUT AN EDUCATION ON THE VENTURE'S MONEY YOU NEED PEOPLE WITH VISION INCREASINGLY THEN VENTURE CAPITALISTS ARE TURNING TO PEOPLE LIKE CHARLES DIGATE MR DIGATE A GRADUATE OF MIT BREEZED THROUGH A STRING OF VENTURECAPITAL DEALS IN SETTING UP HIS BEYOND INC A CAMBRIDGE MASS DEVELOPER OF COMMUNICATIONSSOFTWARE PROGRAMS A FORMER SENIOR VICE PRESIDENT OF LOTUS DEVELOPMENT CORP AND EUROPEAN PRODUCT MANAGER AT TEXAS INSTRUMENTS INC MR DIGATE IS HARDLY A VISION OF THE BUDDING TECHNOLOGY WONK WHAT HE HAD THOUGH WAS JUST THE RIGHT MIX OF TECHNICAL SKILLS AND HIGHPOWERED CORPORATE RESUME TO SEND THE VENTURE CAPITALISTS INTO A LATHER I HAD HEARD ALL KINDS OF HORROR STORIES ABOUT RAISING MONEY SAYS MR DIGATE WHOSE INITIAL 3 MILLION IN FINANCING CAME FROM A TEAM THAT INCLUDED MR BARROWS'S FIRM I WAS PLEASANTLY SURPRISED A SIMILAR STORY CENTERS AROUND CHARLES JOHNSON WHO RUNS 21 CENNET A RICHARDSON TEXAS WIRELESS DATA COMPANY MR JOHNSON THE FORMER PRESIDENT OF TELINQ A DATATRANSMISSION COMPANY SNAGGED 5 MILLION IN VENTURE MONEY IN APRIL INCLUDING INVESTMENTS FROM SEVIN ROSEN FUNDS AND 1 MILLION FROM COMPAQ COMPUTER CORP PEOPLE HAVE BEEN VERY VERY EAGER TO HEAR OUR STORY SAYS GARY SLAGEL A VICE PRESIDENT OF THE COMPANY AT SEVIN ROSEN THE DALLAS VENTURE FIRM THAT SPAWNED COMPAQ AND SUPERCOMPUTER MAKER CONVEX COMPUTER CORP THE INVESTMENT FOCUS OFTEN IS ON TEAMS RATHER THAN ON INDIVIDUALS JON BAYLESS A GENERAL PARTNER SAYS THE FIRM MAY INVEST IN AN OFFBEAT TECHNOLOGIST BUT ONLY IF THAT PERSON IS SURROUNDED BY MARKETING AND SALES WHIZZES TO SMOOTH OUT THE ROUGH EDGES A CASE IN POINT MR BAYLESS SAYS IS COMPAQ ITSELF WHICH WAS FOUNDED BY THREE MEN EACH WITH A DIFFERENT SET OF SKILLS WE NEED PEOPLE TO FLESH OUT THE EXPERIENCE AND SKILLS THAT THE OTHERS DON'T HAVE HE SAYS WE RECOGNIZE THAT IN ORDER TO BUILD A BUSINESS THERE ARE AN AWFUL LOT OF PROBLEMS TO BE SOLVED MANY INDUSTRY OBSERVERS THOUGH WORRY ABOUT HOW ALL OF THIS MAY AFFECT CREATIVITY AND RISKTAKING IN THE TECHNOLOGY BUSINESS IF THE VENTURE CAPITALIST ISN'T WILLING TO TAKE A GAMBLE ON A POWERFUL BUT UNTESTED IDEA WHO IS VENTURECAPITAL MONEY IS NOT VERY VENTURESOME ANYMORE SAYS NOLAN BUSHNELL THE FOUNDER OF ATARI INC AND INVENTOR OF PONG THE FIRST COMMERCIALLY SUCCESSFUL VIDEO GAME THIS ENVIRONMENT WOULD NEVER HAVE ALLOWED AN ATARI OR AN APPLE TO EVEN BE FOUNDED JUST LOOK AT THE CURRENT VENTURECAPITAL MARKET THE NUMBER OF DEALS IS DOWN THE RETURNS VENTURE CAPITALISTS EXPECT ARE HIGHER AND THE INDULGENCES OF THE LATE 1980S WHEN INSTITUTIONAL INVESTORS AND MONEY MANAGERS LOST BIG AS THE PERSONALCOMPUTER INVESTING BOOM FIZZLED HAS RESULTED IN A RISKAVERSE CAPITAL COMMUNITY MOREOVER THE VENTURE MONEY THAT IS FLOWING ABOUT 32 BILLION WAS DISBURSED LAST YEAR IS INCREASINGLY BEING SPENT ON A NARROWER RANGE OF TECHNOLOGY THE HARDCORE HIGHTECH HARDWARE MAKERS THAT HAD BEEN VENTURE CAPITAL'S STOCK IN TRADE HAVE NOW BECOME PARIAHS THE HOT TICKETS THESE DAYS INCLUDE HEALTH CARE WHICH ACCOUNTED FOR MORE THAN A THIRD OF ALL THE VENTURE MONEY SPENT LAST YEAR SOFTWARE AND PORTABLE COMPUTING OUTSIDE THOSE AREAS AND AMONG ENTREPRENEURS NOT BLESSED WITH THE PEDIGREE OF A MR DIGATE THE FUNDRAISING PROCESS IS VERY TOUGH CORNELIUS FERRIS FOR EXAMPLE DOESN'T RELISH THE PROSPECT OF GOING BACK TO THE VENTURE COMMUNITY FOR HIS FLUENT MACHINES INC A MASSACHUSETTS MULTIMEDIA COMPUTING COMPANY ESPECIALLY WHEN THE VENTURE INDUSTRY IS IN THE MIDST OF ITS OWN CONSOLIDATION YOUR SKIN HAS TO BE VERY TOUGH HE SAYS ADDS TOM RILEY OWNER OF A REDWOOD CITY CALIF HOMEAUTOMATION COMPANY IT'S EXCRUCIATINGLY DIFFICULT IT'S TERRIBLE HAVING YOUR HAT IN HAND ALL THE TIME IT'S LIKE YOU'RE THE GUY ON HIS KNEES ALL THE TIME WAITING IN THE LOBBY VENTURE CAPITALISTS SAY THEY ARE FORCED TO PLAY THE LAW OF AVERAGES WITH THE BOND MARKET SOARING AND THE OVERTHECOUNTER STOCK MARKET ALSO ON THE MOVE BIG INVESTORS HAVE A BROADER CHOICE OF INVESTMENT OPTIONS TO ATTRACT THEIR MONEY THE VENTURE CAPITALISTS SAY THEY HAVE TO OFFER LESS RISKY INVESTMENTS INEVITABLY MR BAYLESS OF SEVIN ROSEN ACKNOWLEDGES THAT MAY CRIMP A CRUCIAL CAPITAL PIPELINE FOR MANY COMPANIES EXPLORING ON THE LEADING EDGE OF TECHNOLOGY THE GUY WHO GOES OFF IN THE GARAGE AND INVENTS SOMETHING HE THINKS WILL CHANGE THE WORLD HAS THE ODDS STACKED AGAINST HIM MR BAYLESS SAYS HE IS GOING TO BE A VERY FRUSTRATED PERSON MR POPE IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S DALLAS BUREAU 9305240177 930524 CREDIT MARKETS CLINTON'S PLAN IS DISTURBING BOND PLAYERS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL IT'S PRETTY CLEAR THAT IT'S NOT WORKING MR MURPHY SAYS CITING THE RECENT OPPOSITION TO THE PRESIDENT'S ECONOMIC PACKAGE FROM SOME MODERATE MEMBERS OF CONGRESS A GROUP LED BY SEN DAVID BOREN D OKLA UNVEILED AN ALTERNATIVE BIPARTISAN PLAN THAT WOULD ELIMINATE THE PRESIDENT'S PROPOSED ENERGY TAX OTHER ANALYSTS AGREE THERE IS A LOT OF UNCERTAINTY ABOUT WHAT'S GOING TO COME OUT OF WASHINGTON SAYS DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC IN ORDER FOR THE BOND MARKET TO DO BETTER THERE ARE GOING TO HAVE TO BE SIGNIFICANT SPENDING CUTS HE SAYS BECAUSE YOU DON'T CUT DEFICITS BY INCREASING TAXES INFLATION IS UNLIKELY TO JUMP MUCH HIGHER THAN 35 THIS YEAR SAYS MR FINE BUT THE STORY MAY BE DIFFERENT NEXT YEAR IF THE ECONOMY PICKS UP STEAM LATER THIS YEAR HE SAYS WITH INFLATION ON THE RISE FOR APRIL MANY MARKET PLAYERS HAD ALREADY BEGUN WORRYING LAST WEEK THAT PERHAPS MORE FED GOVERNORS JUMPED ONTO THE HIGHERRATE BANDWAGON AT LAST WEEK'S FOMC MEETING THANKS TO SUCH SPECULATION AND WORRIES ABOUT POLITICS YOU NOW HAVE MORE UNCERTAINTY ABOUT SHORTTERM AS WELL AS LONGTERM INTEREST RATES SAYS MR FINE ON FRIDAY THE COUPONEQUIVALENT YIELD FOR THE CURRENT ISSUE OF ONEYEAR TREASURY BILLS ROSE SHARPLY TO 343 FROM 334 THURSDAY BUT NOT EVERYONE IS CRINGING AT THE POLITICAL EVENTS IN WASHINGTON THESE DAYS AND WORRYING ABOUT HOW IT WILL TURN OUT THOMAS D GALLAGHER A POLITICAL ANALYST AT SHEARSON LEHMAN BROTHERS BELIEVES THE OBSTACLES TO GETTING THE CLINTON ECONOMIC PACKAGE APPROVED CAN BE OVERCOME A LOT OF PEOPLE IN THE BOND MARKETS HAVE THE IMPRESSION THAT THE BUDGET PLAN IS SO FRAGILE THAT IT MIGHT NOT MAKE IT THOUGH THE PERILS OF CONGRESS HE SAYS BUT I THINK IT'S A MORE DURABLE PRODUCT THAN THAT HE ADDS THE DEMOCRATS IN CONGRESS KNOW THEY HAVE TO DELIVER DEFICIT REDUCTIONS BECAUSE THEY PROMISED THAT TO VOTERS A PLAN CLOSE TO WHAT CLINTON PROPOSED WILL PREVAIL MOST US TREASURY ISSUES SHOWED MODERATE LOSSES SOME OF THE HEAVIEST DAMAGE WAS DONE IN THE BILL SECTOR AS SPECULATION THAT THE FEDERAL RESERVE HAD MOVED TOWARD A CREDITTIGHTENING BIAS PROMPTED A WAVE OF SELLING THE FED RELEASED MINUTES OF THE MARCH 23 FOMC MEETING WHICH SHOWED THAT TWO FED GOVERNORS HAD URGED THE COMMITTEE TO VOTE FOR HIGHER SHORTTERM INTEREST RATES THE NOTION THAT THE FED HAS MOVED TOWARD A BIAS FOR RAISING RATES WAS BOLSTERED BY THURSDAY'S FED MONEYSUPPLY DATA WHICH SHOWED LARGERTHANEXPECTED INCREASES MEANWHILE DEALERS CONTINUED TO WRESTLE WITH THE OUTLOOK FOR NEARTERM INFLATION IN THE WAKE OF BEARISH PRICE REPORTS FOR APRIL ALSO HURTING THE SHORTTERM END WERE PROSPECTIVE SUPPLIES THE TREASURY PLANS TO SHIFT MORE OF ITS ISSUANCE TO SHORTTERM MATURITIES AT A TIME WHEN THAT SECTOR OF THE MARKET IS INCREASINGLY VULNERABLE THE TREASURY ANNOUNCED FRIDAY AFTERNOON THAT IT WILL SELL 1475 BILLION IN ONEYEAR BILLS NEXT THURSDAY UP 500 MILLION FROM THE AUCTION IN APRIL THE INTEREST RATES FOR TREASURY BILLS WHICH HAVE MATURITIES RANGING FROM THREE MONTHS TO ONE YEAR SURGED AS MUCH AS 009 PERCENTAGE POINT THE BILL SECTOR WAS DECIMATED SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC THE INTEREST RATES OF OTHER TREASURY MATURITIES ALSO ROSE THE 10YEAR NOTE FOR EXAMPLE YIELDED 616 BY LATE FRIDAY UP FROM 609 ON THURSDAY ITS PRICE DROPPED NEARLY 1/2 POINT TO 100 19/32 IN ADDITION TO INCREASED BILL SUPPLY TRADERS WILL HAVE TO CONTEND WITH A RENEWED FLOOD OF NOTE ISSUANCE 1575 BILLION IN TWOYEAR NOTES TO BE SOLD TOMORROW AND 11 BILLION IN FIVEYEAR NOTES TO BE SOLD WEDNESDAY DOUBTS ABOUT MR CLINTON'S ABILITY TO REDUCE THE BUDGET DEFICIT HELPED DEPRESS THE PRICES OF LONGTERM TREASURY ISSUES FURTHER THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9305240176 930524 TECHNOLOGY A SPECIAL REPORT FINDING AND FEEDING OUR CAPTIVATING COLLEAGUE WHO ARE THESE TECHIES RUNNING OUR LIVES BY GIL SCHWARTZ AN ENTERTAINING VISIT WITH OUR NEW MR WIZARD OF TECHNOLOGY NORM FORMAN HERE'S TO THE MEN AND WOMEN WHO MAKE THE HARDWARE HUM THE BELLS AND WHISTLES DING AND SQUEAK THE SOFTWARE SQUISH WHEN YOU SQUEEZE IT THIS IS A BRAVE NEW WORLD AND WE NEED TECHNOCRATS TO HELP US UNDERSTAND IT AND NEGOTIATE IT WITHOUT LAUGHING OR WORSE CRYING THIS MONTH YOUR COMPANY INDEPENDENT ALL THE NEWS THAT CLEARS HUMAN RESOURCES TOOK SOME OF ITS VALUABLE EDITORIAL TIME AND TALENT TO VISIT WITH OUR COMPANY'S NEW VICE PRESIDENT OF TECHNOLOGY AND INFORMATION SERVICES NORM FORMAN NORM BEGAN HIS ILLUSTRIOUS CAREER AT IBM IN 1972 AS WHAT HE REFERS TO AS A LOWLEVEL CODE JOCKEY IN THAT COMPANY'S PROGRAMMING DEPARTMENT GRADUATING OVER THE NEXT 25 YEARS INTO A RECOGNIZED MAGICIAN IN THE DEVELOPMENT OF WHAT HE CALLS WITH A MISCHIEVOUS TWINKLE CUSTOMIZED OPERATING SYSTEMS THAT ARE RELATIVELY POROUS IN REALWORLD SITUATIONS IN 1992 AFTER CONTRIBUTING TO THE COMPUTER GIANT'S HUGELY SUCCESSFUL ROLLOUT OF OS/2 NORM HEEDED OUR COMPANY'S SIREN CALL AND ASSUMED HIS CURRENT POSITION OF EXTRAORDINARY IMPORTANCE IN OUR CORPORATE FIRMAMENT AS CHAIRMAN BOB FUTZ NOTED WHEN NORM JOINED US THE FUTURE IS ALL ABOUT PRODUCING LARGE GOBBETS OF OPERATING PROFIT WITH EXTRAORDINARILY TINY NUMBERS OF WORKERS TO DO THIS WE NEED A MARRIAGE OF HIGH TECHNOLOGY AND SUPERIOR INFORMATION THAT IS NOT DEPENDENT ON PEOPLE I HAVE NO DOUBT THAT SOMEONE LIKE NORM WILL BE INVALUABLE THIS SEEMS TO BE AN UNDERSTATEMENT FIRST THE BODY TO LOOK AT NORM FORMAN YOU'D NEVER KNOW THAT HE CARRIES THE WEIGHT OF AN ENTIRE CORPORATE CULTURAL CHANGE ON HIS SIZE34 SHOULDERS TO CALL HIM UNPREPOSSESSING WOULD BE TO EXAGGERATE UNDERNEATH HIS PLACID EXTERIOR HOWEVER WE WERE AWARE OF THE WIT DRIVE AND INTELLIGENCE OF A JUNGLE CAT NORM GREETED US WHILE UNPACKING HIS BOXES FROM HIS MOVE INTO CORPORATE HEADQUARTERS SIT DOWN AND TAKE A LOAD OFF HE HOLLERED AS WE HOVERED IN THE DOORWAY CLEARLY THIS WAS NO STUFFED SHIRT WE WERE DEALING WITH IN FACT HIS SHIRT HUNG QUITE LOOSELY ON HIM ESPECIALLY IN THE NECK WHICH VIRTUALLY SWAM ABOUT AN ADAM'S APPLE THAT BOBBED UP AND DOWN VOCIFEROUSLY WHILE HE TALKED WE HADN'T EVEN SAT DOWN WHEN NORM BEGAN TALKING ABOUT THE INSTRUCTION SET HE HAS RECEIVED FROM SENIOR MANAGEMENT THE KEY TO ALL FUTURE GROWTH AND IMPROVEMENT IN AN ESSENTIALLY FLAT MARKET IS BETTER USE OF MANAGEMENT INFORMATION AND THE TECHNOLOGY THAT FREES PEOPLE FROM REPETITIVE OR MINDLESS TASKS HE SAID AS HE ALPHABETIZED MANILA ENVELOPES I SUSPECT THE ANSWER LIES IN BETTER CROSSDIMENSIONAL ASSOCIATION BETWEEN FLAT AND RELATIONAL DATABASES MASSIVE PARALLEL PROCESSING COULD ALSO BE REQUIRED AS WE MOVE DOWN THE ROAD TOWARD OMNIDIRECTIONAL DATA FLOW AS HE SPOKE NORM'S FACE GREW QUITE ROSY AND A FLUSH CREPT FROM THE BASE OF HIS NECK INTO HIS FOREHEAD WHICH HAD BEADED UP WITH PERSPIRATION WHAT PASSION HE ALSO HAD THIS AMAZING ABILITY TO HUM WHILE CONVERSING IT'S TRUE AT FIRST WE THOUGHT IT WAS FEEDBACK FROM THE PORTABLE POCKET MODEM THAT HE PERIODICALLY CHEWED ON AS WE SPOKE BUT NO IT WAS THE GUY HIMSELF UNCONSCIOUSLY EMITTING A LITTLE TUNE IT SOUNDED LIKE STAIRWAY TO HEAVEN BUT WE WEREN'T QUITE SURE IT WAS CLEAR HOWEVER THAT WE HAD TO FIND OUT MORE ABOUT THIS ENIGMATIC FIGURE WE ASKED ABOUT HIS LIFE TO DATE AND THE PROFESSIONAL BACKGROUND THAT PREPARED HIM FOR THIS HIS LARGEST AND MOST CHALLENGING OF WELL CHALLENGES IT'S QUITE INTERESTING REALLY HE BEGAN I WAS BORN IN A SMALL SUBURB OF SKOKIE ILL DURING THE THIRDWORST SNOWSTORM TO HIT THE MIDWEST DURING THE LATTER PART OF 1952 SEVEN INCHES OF SNOW OR RATHER 72 INCHES WIND CHILL OF 15 DEGREES FAHRENHEIT ACTUALLY IT WAS 16 DEGREES ACCORDING TO THE DATABASE COMPILED BY THE NATIONAL WEATHER SERVICE ALTHOUGH THE CHICAGO PAPERS AT THE TIME RECORDED IT AS 15 THE TEMPERATURE WAS SIX DEGREES BELOW THE AVERAGE TEMPERATURE FOR THAT DAY BASED ON THE READINGS FOR THE PREVIOUS 50 YEARS NORM CONTINUED I DATE MY FIRST SENSATION OF INDIVIDUAL CONSCIOUSNESS FROM THE MOMENT MY DAD BROUGHT HOME MY FIRST ERECTOR SET HE THEN WENT ON TO TALK ABOUT HIS SECOND AND THIRD SENSATIONS OF INDIVIDUAL CONSCIOUSNESS AND EVENTUALLY WORKED HIS WAY TO THE REMARKABLE SAGA OF HIS SENIOR THESIS AT MIT ORGANIZATIONAL STRUCTURE OF CORPORATIONS VIEWED AS A BINARY CONCEPT WHICH WON HIM THE COVETED BARFINGER PRIZE AS HE FASCINATED US WITH DETAILS OF THE THESIS WE NOTICED A FLY CREEPING UP THE INSIDE OF THE HERMETICALLY SEALED WINDOW ON THE EXECUTIVE FLOOR THAT NORM NOW CALLS HOME WE WONDERED HOW COULD A COMMON HOUSEFLY MAKE ITS WAY UP 40 FLOORS AND FOUR ELEVATOR BANKS INTO AN AREA THAT HAD NEVER FELT AN UNCONDITIONED WAFT OF PURE AIR HOW WOULD HE GET OUT WHAT WAS HE THINKING ABOUT JUST LISTEN TO HIM WE THOUGHT BUZZING BUZZING THE NEXT THING WE KNEW NORM WAS SHAKING OUR SHOULDER FOR SOME REASON AND KIND OF CHUCKLING HAPPENS TO ME ALL THE TIME HE LAUGHED IN HIS WINNING AND JOCULAR FASHION I GUESS I MUST RELAX PEOPLE NOW WHERE WERE WE CORPORATE IMPRESSIONS IT SEEMED THAT THE TIME WAS RIGHT FOR A WORD ABOUT HIS FIRST IMPRESSIONS OF OUR COMPANY THIS IS A GREAT PLACE WITH TERRIFIC PRODUCTS AND OUTSTANDING PEOPLE NORM SAID HE HAD TAKEN OUT A SMALL SPOOL OF WAXED STRING AND WAS DEMURELY FLOSSING HIS TEETH BEST OF ALL HE WENT ON I CAN SEE SPECIFIC WAYS THAT GROWTH AND PROCESS IMPROVEMENT COULD BE EFFECTED WITH MINIMAL RETROFITTING OF THE WORK FORCE HE SUDDENLY PRODUCED A SMALL PAD AND MECHANICAL PENCIL THE KIND WHOSE LEAD STICK ALWAYS BREAKS THE MINUTE YOU TRY TO WRITE ANYTHING FROM A BRISTLING QUIVER OF WRITING IMPLEMENTS THAT GRACED HIS SHIRT POCKET CLEVERLY PROTECTED FROM THE FABRIC ITSELF BY A PLASTIC SHEATH THAT SAID GET MET IT PAYS NORM BEGAN SKETCHING WHAT HE SAID WAS A STRUCTURAL REWORKING OF THE ENTIRE DATA NETWORK IT LOOKED A LOT LIKE A GIANT WEASEL REARING UP OVER THE SKYLINE OF PITTSBURGH TO US BUT WE TOOK HIS WORD FOR IT WE WATCHED WITH MOUNTING ENCHANTMENT AS THE MAGNIFICENT CONCEPT TOOK SHAPE ON THE PAPER SKRITCH SKRITCH SKRITCH WENT THE PENCIL OUTSIDE THE OFFICE A FAX MACHINE WAS SLOWLY SPITTING OUT A PIECE OF WAXY PAPER THAT FADED EVEN AS IT WAS RECEIVED BRMMMM WENT THE FAX MACHINE AT THE END IT SAID BLEPH AND SPIT OUT THE PAPER THE NEXT THING WE KNEW NORM WAS POUNDING ON OUR CHEST AND WE WERE LOOKING UP AT THE ATTRACTIVE TILING THAT GRACES ALL EXECUTIVE CEILINGS EXCEPT THOSE BELONGING TO THE CHAIRMAN AND HIS TOP STAFF WHICH ARE WOOD THE CEILINGS WE MEAN LOOKS LIKE YOUR HEART STOPPED THERE FOR A MINUTE NORM CHIRPED IN HIS JOLLY FASHION WE STUMBLED TO OUR FEET AND APOLOGIZED AS WE HURRIEDLY ATTEMPTED TO GATHER OUR GEAR AND HEAD DOWN TO THE RESTAURANT THAT FILLS THE LOBBY OF OUR BUILDING WE THOUGHT OF BASEBALL IN THE SPRING AND OF OUR FAMILY THAT WAS EVEN THEN ON THE VERGE OF GOING OUT TO PICK UP A ROAST CHICKEN FOR DINNER WE HOPED THEY WERE COOKING IT OVER A SPIT AND HAD KILLED THE CHICKEN THEMSELVES WITH THEIR OWN BARE HANDS WITHOUT ANY TOOLS OR IMPLEMENTS THANKS FOR DROPPING BY SAID NORM AS WE HURLED OURSELVES THROUGH THE DOORWAY AND CAREENED HEADFIRST INTO THE DRYWALL OUTSIDE I'LL BE CONDUCTING A POLL OF ALL EMPLOYEES ON THE PREVAILING STATE OF THE ART COMPANYWIDE IN MY AREA OF RESPONSIBILITY THAT SHOULD BE A FUN THING TO MENTION TOO AND LET'S HAVE LUNCH OK OK WE SAID OK AND OF COURSE IT IS NORM'S A REALLY NICE GUY AS ARE ALL THE HARDWORKING MEN AND WOMEN WHO ARE TRYING EVERY DAY TO MAKE THIS CORPORATION THINK SMARTER HARDER FASTER AND JUST PLAIN BETTER NORM CAN BE REACHED AT EXTENSION 453 OR ON THE NETWORK AS NORFMAN WE CAN BE REACHED AT THE BAR DOWNSTAIRS IN THE LOBBY BUT ONLY IF IT'S IMPORTANT OK MR SCHWARTZ IS A WRITER AND BUSINESS EXECUTIVE IN NEW YORK 9305240175 930524 TECHNOLOGY A SPECIAL REPORT FINDING AND FEEDING IGNORING THE BOTTOM LINE NEC'S US RESEARCH LAB HAS A THEORY THE FREEDOM NOT TO WORRY ABOUT PRODUCTS MAY LEAD TO THE BEST PRODUCTS OF ALL BY JOHN KELLER PRINCETON NJ DON'T WORRY ABOUT PROFITS FOR MANY HIGHTECH RESEARCHERS FEW SENTENCES INSPIRE MORE REVERENCE THAN THIS THE IDEA OF BEING ABLE TO DO WHAT YOU WANT TO DO UNFETTERED BY COMPANY BEAN COUNTERS IS A SCIENTIST'S DREAM C WILLIAM GEAR IS LIVING ONE OF THOSE DREAMS AS PRESIDENT OF NEC CORP'S NEC RESEARCH INSTITUTE HERE HIS ORDERS ARE TO BUILD A LAB WHERE SCIENTISTS DO THEIR BASIC RESEARCH REGARDLESS OF WHETHER IT LEADS TO A SALABLE PRODUCT OR ANY PRODUCT AT ALL OBVIOUSLY AT SOME POINT WE WANT SOME OF OUR WORK TO AFFECT THE COMPANY'S BUSINESS SAYS DR GEAR A COMPUTER SCIENTIST BUT HE ADDS FOR NOW WE HAVE NO DIRECTED MISSION IN SOME SENSE NEC A JAPANESE COMPUTER COMPANY IS COUNTING ON A NOTION CURRENTLY OUT OF FAVOR IN TODAY'S CUTTHROAT CORPORATE ENVIRONMENT THAT IS THE BEST WAY TO MAKE MONEY MAY BE NOT TO WORRY ABOUT MAKING MONEY THE COMPANY HOPES THAT THE FREEDOM IT GIVES RESEARCHERS WILL LURE SOME OF THE BEST YOUNG COMPUTER AND BIOTECHNOLOGY SCIENTISTS TO WHAT EXPERTS SAY IS QUICKLY BECOMING A WORLDCLASS BASICRESEARCH LAB NEC'S NOT GOING TO GET DIRECTION FOR THE FUTURE BY TELLING US WHAT TO DO DR GEAR SAYS OUR RESPONSIBILITY IS TO CONVINCE THEM WHAT'S IMPORTANT FOR THE FUTURE FROM A STANDING START IN 1989 NEC RESEARCH NOW EMPLOYS 94 RESEARCHERS 40 OF WHOM HOLD DOCTORATES AND MOST OF THESE RECRUITS COME FROM SOME OF THE BEST INDUSTRIAL AND UNIVERSITY LABS IN THE COUNTRY NEC OBVIOUSLY ISN'T THE ONLY TECHNOLOGY COMPANY SPENDING MONEY ON RESEARCH FOR INSTANCE BELL LABS THE RESEARCH ARM OF AMERICAN TELEPHONE & TELEGRAPH CO EMPLOYS 1200 BASIC RESEARCHERS OUT OF 25000 EMPLOYEES WORKING ON EVERYTHING FROM MATHEMATICAL ALGORITHMS TO SUPERCONDUCTIVITY SEVEN BELL LABS SCIENTISTS ALSO HAVE SHARED FOUR NOBEL PRIZES A FEAT COVETED BY NEC WHICH HAS NEVER WON A NOBEL PRIZE INTERNATIONAL BUSINESS MACHINES CORP HAS 3200 SCIENTISTS AND ENGINEERS IN BASIC AND APPLIED RESEARCH AND THAT DOESN'T INCLUDE THE COMPANY'S REGULAR PRODUCTDEVELOPMENT ACTIVITIES GENERAL ELECTRIC CO'S CORPORATE RESEARCH & DEVELOPMENT CENTER IN SCHENECTADY NY A DIRECT DESCENDANT OF THOMAS ALVA EDISON'S EFFORTS EMPLOYS 1050 SCIENTISTS ENGINEERS AND TECHNICIANS ABOUT 5 OF GE'S 19000 SCIENTISTS AND ENGINEERS NEC ITSELF SPENDS SOME 3 BILLION ANNUALLY ON RESEARCH AND DEVELOPMENT AND EMPLOYS 15000 SCIENTISTS AND ENGINEERS WORLDWIDE EACH OF THE CORPORATION'S FIVE GROUPS PRODUCT TECHNOLOGY GROUP SYSTEMS GROUP ELECTRONIC COMPONENTS SEMICONDUCTORS AND PERSONAL ELECTRONICS HAS ITS OWN RESEARCHANDDEVELOPMENT EFFORT IN ADDITION THE CORPORATION HAS A CORPORATE RESEARCHANDDEVELOPMENT GROUP WHICH INCLUDES DR GEAR'S LAB ACCORDING TO YASUO KATO NEC'S SENIOR VICE PRESIDENT OF RESEARCH AND DEVELOPMENT IN TOKYO NEC'S CORPORATE RESEARCHANDDEVELOPMENT GROUP EMPLOYS 1600 PEOPLE IN RESEARCH AND USES ABOUT 10 OR 300 MILLION OF NEC'S TOTAL R&D MONEY WHILE MR KATO WON'T DIVULGE HOW MUCH OF THAT GOES TO DR GEAR'S RESEARCH HE WILL SAY OUR ACTIVITIES IN THE US ARE THE MOST IMPORTANT TO NEC BUT IT ISN'T SO MUCH THE MONEY THAT MAKES NEC RESEARCH INSTITUTE SPECIAL IT'S THE MISSION AT A TIME WHEN MOST OTHER HIGHTECH COMPANIES ARE ASKING THEIR LABS TO DEEMPHASIZE BASIC RESEARCH AND DIRECT MORE OF THEIR EFFORTS TO PRODUCT DEVELOPMENT NEC IS TAKING THE OPPOSITE TACK AS BELL LABS' RESEARCH DIRECTOR AND NOBEL LAUREATE ARNO PENZIAS SAYS THE TYPICAL US LAB THESE DAYS PERFORMS RESEARCH FOR FUNAND PROFIT BY CONTRAST SAYS PHILIP GRIFFITHS DIRECTOR OF THE INSTITUTE FOR ADVANCED STUDY A PRINCETON RESEARCH ORGANIZATION THE PEOPLE AT NEC ARE HAVING A GREAT TIME JUST THINKING OF SCIENCE THESE ASPIRATIONS ARE PLAYED OUT EVERY DAY IN A NONDESCRIPT OFFICE PARK OFF NEW JERSEY'S ROUTE 1 ON THE FIRST FLOOR WILLIAM BIALEK A BIOPHYSICIST STUDIES THE STRUCTURE OF A FLY'S EYE TO SEE WHETHER THE PEST'S NERVOUS SYSTEMS AND BRAIN FUNCTIONS MIGHT OFFER INSIGHTS INTO INFORMATION PROCESSING NOT TOO FAR AWAY SANDIWAY FONG A COMPUTATIONAL LINGUIST TEACHES A COMPUTER TO HAVE AN INNATE UNDERSTANDING OF LANGUAGE JAPANESE AND ENGLISH FIRST OF COURSE ON THE NEXT FLOOR PREMALA CHANDRA UNLOCKS THE MYSTERY OF CRYSTALS TO FIND A NEW COMPUTER CODE FOR FUTURE INFORMATION SYSTEMS THEIR DAYS IN SOME WAYS ARE AS VAGUE AND INDEFINABLE AS THEIR MISSION DR FONG FOR INSTANCE SPENDS HIS TIME TAKING SENTENCES OUT OF LANGUAGE BOOKS TEARING THEM DOWN WORD BY WORD AND IDENTIFYING SUBJECTS OBJECTS VERBS AND CLAUSES HE ASSIGNS EACH ITEM A SYMBOLIC CATEGORY ACCORDING TO ITS PLACEMENT IN THE SENTENCE THEN HE FEEDS THE INFORMATION INTO HIS DESKTOP COMPUTER BACKED UP BY PROCESSING POWER IN MAINFRAME COMPUTERS IN TOKYO PRINCETON AND AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY SOUND FAR OUT TOO MUCH OF TODAY'S RESEARCH FAILS TO THINK ABOUT THE DAY AFTER TOMORROW DR GEAR SAYS WE'RE LOOKING AT TODAY'S RESEARCH TOMORROW'S RESEARCH AND THE DAY AFTER TOMORROW'S RESEARCH IT WAS PRECISELY THIS LONG VIEW THAT PERSUADED DR GEAR TO QUIT HIS JOB AS HEAD OF THE COMPUTERRESEARCH DEPARTMENT AT THE UNIVERSITY OF ILLINOIS CHAMPAIGNURBANA AND SIGN ON WITH NEC IN 1989 AS VICE PRESIDENT OF COMPUTER SCIENCES I WAS AT THE UNIVERSITY FOR 28 YEARS AND NEC WAS OFFERING A HIGHLY CHALLENGING OPPORTUNITY HE SAYS OVER THE NEXT COUPLE OF YEARS DR GEAR AND NEC RECRUITERS BEGAN CHATTING UP SCIENTISTS AND OTHERS IN THE ACADEMIC COMMUNITY ABOUT NEC'S PLANS FOR ITS RESEARCH INSTITUTE THEY STRESSED A VERY DESIRABLE RESEARCH ENVIRONMENT WHICH THE MEMOAVERSE DR GEAR SAYS MINIMIZES BUREAUCRACY AND LETS SCIENTISTS BE SCIENTISTS OUR PEOPLE DON'T HAVE TO WRITE A LOT OF PROPOSALS TO GET WHAT THEY WANT HE SAYS RECALLING THAT HIS FORMER UNIVERSITY WORK REQUIRED 15PAGE PROPOSALS TO JUSTIFY BUDGETS AND RESEARCH ASSISTANTS INSTEAD EACH SCIENTIST AT THE RESEARCH INSTITUTE IS HIS OR HER OWN BOSS WITH A RESEARCH BUDGET AND SIGNATORY AUTHORITY TO ORDER WHATEVER IS NEEDED TO EQUIP A LAB THAT FREEDOM IS CLEARLY THE RESEARCH INSTITUTE'S BIGGEST LURE NEC'S PAY OFFER WAS THE LOWEST OFFER I GOT AND I TOOK IT SAYS THE 30YEAROLD DR FONG WHO RECEIVED A DOCTORATE IN ARTIFICIAL INTELLIGENCE FROM MIT YOU CAN'T BUY RESEARCH FREEDOM ACCORDING TO INDUSTRY RUMORS NEC WAS ATTRACTING TALENT BY OFFERING EXTRAVAGANT SALARIES DR GEAR DENIES THAT ACCUSATION INSISTING THAT NEC'S PAY IS COMPETITIVE WITH OTHER UNIVERSITY LABS ABOUT 55000 TO FRESH PHDS HE ADDS WE MAY BE EVEN SLIGHTLY LOWER IF YOU CONSIDER THAT UNIVERSITY SCIENTISTS CAN TAKE ON EXTRA SUMMER WORK AND OUTSIDE CONSULTING CORPORATE FREEDOM OF COURSE HAS ITS LIMITS EVEN AT NEC OBVIOUSLY NEC COULD GET RID OF YOU IF THEY DON'T LIKE YOUR WORK SAYS DR FONG HE NOTES THAT THE COMPANY EVALUATES ITS SCIENTISTS EVERY THREE YEARS AND THAT HE IS IN HIS SECOND YEAR I GUESS I'LL HAVE TO SHOW SOMETHING BY THE END OF THE YEAR HE SAYS AGAIN THOUGH THAT THREEYEAR EVALUATION IS NOT BASED ON HOW MUCH OF A SCIENTIST'S WORK LEADS TO A PARTICULAR PRODUCT OR WHETHER IT HAS CONTRIBUTED TO THE BOTTOM LINE THE EVALUATION RATHER IS AN ASSESSMENT OF WHETHER THE PERSON'S WORK HAS PRODUCED MEANINGFUL RESEARCH FOR NEC'S UNDERSTANDING AND COMPETITIVENESS IN COMPUTERS AND COMMUNICATIONS THEN THERE'S THE JAPANESE OWNERSHIP AN ISSUE THAT RILES DR GEAR WE'RE GETTING A LOT OF FLAK BECAUSE OF OUR JAPANESE CONNECTIONS HE COMPLAINS BUT YOU KNOW 400 YARDS FROM US IS A SIEMENS LAB OWNED BY THE GIANT GERMAN CORPORATION SIEMENS AG NOBODY SAYS ANYTHING ABOUT THAT DR GEAR ADDS THERE'S NO SECRET WORK GOING ON IN OUR BUILDING RESEARCH INSTITUTE SCIENTISTS HE SAYS ARE FREE TO PUBLISH EVERYTHING THEY DO SOME OF THE BIG INDUSTRIAL LABS THAT ARE CLOSER TO THE DEVELOPMENTAL PROCESS KEEP THINGS SECRET WITH A VENGEANCE FOR FEAR THAT COMPETITORS WILL GET HOLD OF THEIR WORK WE DON'T DO THAT DR GEAR ALSO SAYS NEC HAS A POLICY AGAINST RAIDING OTHER LABS IT'S NOT NEIGHBORLY HE SAYS NOTING THAT HE MET WITH BELL LABS OFFICIALS A COUPLE OF YEARS AGO AND EVERYONE AGREED NOT TO RECRUIT FROM EACH OTHER'S STAFFS BUT THERE'S A FINE LINE BETWEEN RAIDING AND HIRING THE FREEDOM THAT NEC OFFERS DR GEAR SAYS HAS ENABLED HIM TO ATTRACT TOP SCIENTISTS WITHOUT ACTIVE RECRUITMENT AT LEAST FOUR VETERANS OF BELL LABS HAVE LANDED AT NEC INCLUDING JOSEPH GIORDMAINE WHO RETIRED FROM BELL LABS AFTER 27 YEARS AND LATER JOINED NEC RESEARCH INSTITUTE AS HEAD OF ITS PHYSICAL SCIENCES DEPARTMENT THERE WAS SUCH A VISION ABOUT SUPPORTING BASIC RESEARCH DR GIORDMAINE SAYS BY WAY OF EXPLANATION DR FONG CALLS DR GEAR THE BEST RESEARCH MANAGER I'VE EVER SEEN BUT DR FONG IS ALSO SKEPTICAL ABOUT HOW LONG PARADISE CAN LAST WHATEVER NEC'S GOOD INTENTIONS HE SAYS IT IS STILL A HUGE CORPORATION WITH AN OBLIGATION TO MAKE MONEY AN OBLIGATION NO DOUBT REINFORCED BY LAST YEAR'S NET LOSS OF 375 MILLION I WONDER SOMETIMES IF THE BEAN COUNTERS IN JAPAN WILL CONTINUE TO SUPPORT US DR FONG SAYS WE MAY BECOME A LUXURY MR KELLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9305240174 930524 BUSINESS BRIEFS CARGILL INC PLANS TO BUILD A LIQUID CARBONDIOXIDE AND DRYICE PLANT AT ITS CORN MILLING COMPLEX IN EDDYVILLE IOWA THE FACILITIES ARE EXPECTED TO BEGIN PRODUCTION THIS AUTUMN JWP INC SOLD ITS SOFTWARE HOUSE UNIT IN WALTHAM MASS TO AN INVESTMENT GROUP CONSISTING OF MANAGEMENT AND MORGENTHALER VENTURES A CLEVELAND PRIVATE INVESTMENT FIRM TERMS WEREN'T DISCLOSED 9305240173 930524 TECHNOLOGY A SPECIAL REPORT FINDING AND FEEDING RETURN OF THE NATIVES ASIA'S DEVELOPING ECONOMIES LURE HOME HIGHTECH PIONEERS TRAINED IN THE US BY LAURENCE ZUCKERMAN HSINCHU TAIWAN AT FIRST GLANCE THIS GRAY TOWN 40 MILES SOUTHWEST OF TAIPEI BEARS LITTLE RESEMBLANCE TO BLISSFUL PALO ALTO CALIF BUT A CLOSER LOOK REVEALS SOME STRIKING SIMILARITIES WITHIN A FEW MILES ARE TAIWAN'S TWO TOP SCIENCE AND TECHNOLOGY UNIVERSITIES AND ITS MAIN RESEARCH AND DEVELOPMENT LAB FARTHER DOWN THE ROAD IS THE SCIENCEBASED INDUSTRIAL PARK HOME TO THE ISLAND'S MOST INNOVATIVE HIGHTECH COMPANIES THE PARALLEL TO CALIFORNIA'S SILICON VALLEY IS NO ACCIDENT WHEN TAIWAN OFFICIALS BEGAN PLANNING THE SCIENCE PARK IN THE MID1970S THEY PUT IN AN ARTIFICIAL LAKE CALIFORNIASTYLE TOWNHOUSES A SWIMMING POOL TENNIS COURTS AND A BILINGUAL AMERICANSTYLE SCHOOL FOR GRADES K12 IT WAS ALL DONE IN AN EFFORT TO MAKE HSINCHU LESS LIKE TEEMING TAIPEI AND MORE LIKE THE ATTRACTIVE SUBURBS OF THE SAN FRANCISCO PENINSULA WE EVEN HAVE A GOLF DRIVING RANGE SAYS STEVE HSIEH THE PARK'S DIRECTORGENERAL THE PURPOSE OF ALL THESE AMENITIES TO LURE HOME NATIVE TAIWANESE WHO HAD EARNED ADVANCED DEGREES IN THE US AND STAYED ON TO LAUNCH SUCCESSFUL CAREERS IN AMERICA'S HIGHTECH INDUSTRIES IT WORKED THE HSINCHU PARK IS NOW THE CENTER OF TAIWAN'S FASTGROWING 12 BILLION SEMICONDUCTOR INDUSTRY IT INCLUDES DOZENS OF OTHER INNOVATIVE TECHNOLOGY COMPANIES FROM A FLEDGLING ROBOT MAKER TO THE MANUFACTURER OF THE SATELLITE DISHINASUITCASE USED BY CNN CORRESPONDENT PETER ARNETT TO BROADCAST FROM BAGHDAD DURING THE GULF WAR OF THESE 140 COMPANIES HALF WERE FOUNDED BY RETURNEES FROM THE US WHILE THE OTHERS BENEFIT FROM THE SKILLS OF THE 800 USTRAINED SCIENTISTS AND ENGINEERS THAT MR HSIEH SAYS HAVE BEEN ENTICED HOME IN THE PAST DECADE TAIWAN'S SUCCESS VIVIDLY ILLUSTRATES ONE OF THE MOST IMPORTANT STRATEGIES THAT ASIA'S DEVELOPING ECONOMIES ARE EMPLOYING TO UPGRADE THEIR TECHNOLOGICAL KNOWHOW AND CREATE PROSPECTIVE HIGHTECH PIONEERS FACING INTENSE COMPETITION FROM THEIR LESSDEVELOPED NEIGHBORS IN SOUTHEAST ASIA THE SOCALLED FOUR DRAGONS HONG KONG KOREA SINGAPORE AND TAIWAN ARE TRYING TO MOVE AWAY FROM THE LOWWAGE LABORINTENSIVE INDUSTRIES THAT FUELED THEIR RECORD POSTWAR ECONOMIC GROWTH AND INTO HIGHTECH FIELDS SUCH AS COMPUTERS TELECOMMUNICATIONS NEW MATERIALS AND INDUSTRY AUTOMATION WITH TYPICAL URGENCY ALL FOUR SEE THE TRANSITION AS CRITICAL TO THEIR ECONOMIC SURVIVAL MOST COUNTRIES ARE COMING AROUND TO THE FACT THAT UNLESS THEY DEVELOP THEIR OWN TECHNOLOGIES THEY ARE DOOMED SAYS YOUNG GUL KIM A PROFESSOR OF CHEMICAL ENGINEERING WHO SPENT 20 YEARS IN THE US BEFORE RETURNING TO KOREA IN THE EARLY 1970S TO HELP BOOST THE COUNTRY'S GRADUATELEVEL SCIENCE EDUCATION KOREA IS EXPERIENCING ITS WORST ECONOMIC SLOWDOWN IN A DECADE PARTLY BECAUSE IT IS NO LONGER ABLE TO ACQUIRE THE ADVANCED TECHNOLOGY IT NEEDS TO COMPETE WITH RIVALS IN JAPAN EUROPE AND THE US SO NOW THE COUNTRY IS STEPPING UP ITS EFFORTS TO EXPAND CORPORATE RESEARCH AND DEVELOPMENT EVEN THOUGH IT ALREADY SPENDS MORE THAN SPAIN ITALY OR AUSTRIA SIMILARLY SINGAPORE IS HALFWAY THROUGH A FOURYEAR NATIONAL TECHNOLOGY PLAN THAT AIMS TO INCREASE SPENDING ON RESEARCH AND DEVELOPMENT TO 2 OF ANNUAL GROSS DOMESTIC PRODUCT FROM 11 AND RAISE THE NUMBER OF RESEARCH SCIENTISTS AND ENGINEERS BY 25 EVEN LAISSEZFAIRE HONG KONG WHICH HAS LAGGED FAR BEHIND ITS NEIGHBORS IN SUPPORTING SCIENTIFIC RESEARCH IS INVESTING 500 MILLION IN THE NEW HONG KONG UNIVERSITY OF SCIENCE & TECHNOLOGY WHICH AIMS TO BE A WORLDCLASS CENTER OF BASIC AND APPLIED RESEARCH CENTRAL TO THESE EFFORTS IS THE LARGE POOL OF TALENTED PEOPLE WHO LEFT FOR TRAINING IN THE WEST OVER THE PAST THREE DECADES NO PRECISE FIGURES ARE AVAILABLE ON THE SIZE OF THIS GROUP BUT RECRUITERS ESTIMATE THAT THE NUMBER OF NATIVE ASIANS WITH ADVANCED SCIENCE DEGREES WORKING IN THE US RUNS INTO THE TENS OF THOUSANDS OFFICIALS WHO USED TO BEMOAN THIS BRAIN DRAIN NOW SEE IT AS A CRITICAL BOON TO THEIR EFFORTS TO SKIP DECADES OF DEVELOPMENT AND LEAPFROG DIRECTLY TO THE TECHNOLOGICAL FRONTIER I'M VERY GLAD WE ADOPTED THE OPEN POLICY THAT ALLOWED STUDENTS TO GO ABROAD SAYS SHIHCHIEN YANG TAIWAN'S VICE MINISTER OF ECONOMIC AFFAIRS WHO HIMSELF STUDIED ELECTRICAL ENGINEERING IN THE EARLY 1970S AT NORTHWESTERN UNIVERSITY IN EVANSTON ILL OF ALL OF ASIA'S EMERGING ECONOMIES TAIWAN HAS PERHAPS BEEN THE MOST SUCCESSFUL AT TAPPING THIS OVERSEAS TALENT FOUR YEARS AGO CHUANG YIIDER WAS A SCIENCE DIRECTOR IN SAN FRANCISCO FOR THE COORDINATION COUNCIL FOR NORTH AMERICAN AFFAIRS TAIWAN'S REPRESENTATIVE IN THE US HE DECIDED THEN TO FORM AN ORGANIZATION THAT WOULD HELP NATIVE TAIWANESE IN THE SAN FRANCISCO BAY AREA NETWORK IT WAS NAMED MOUNT JADE SCIENCE AND TECHNOLOGY ASSOCIATION AFTER A FAMOUS TAIWAN LANDMARK MOUNT JADE NOW HAS 125 CORPORATE AND 200 INDIVIDUAL MEMBERS IN THE BAY AREA ALONE AND HAS ADDED CHAPTERS IN CHICAGO NEW YORK NEW ENGLAND PITTSBURGH AND WASHINGTON DC AT A RECENT MEETING OF ANOTHER GROUP OF STANFORD UNIVERSITY ALUMNI ON TAIWAN 15 GRADUATES WERE EITHER CHAIRMEN OR CHIEF EXECUTIVES OF LOCAL HIGHTECH COMPANIES AMONG 61 PHDS AT THE DEVELOPMENT CENTER FOR BIOTECHNOLOGY A NINEYEAROLD GOVERNMENTSPONSORED INSTITUTE DESIGNED TO START A BIOTECH INDUSTRY ON THE ISLAND 44 WERE TRAINED AT US UNIVERSITIES THE HSINCHU PARK IS NOW OVERFLOWING WITH RETURNEES CREATING A WAITING LIST FOR THE HOUSING AND FORCING MR HSIEH TO EXPAND THE BILINGUAL SCHOOL TO 18 CLASSROOMS FROM 14 BUT RETURNEES ARE DRAWN HOME BY MORE THAN THE PROMISE OF SOME APPROXIMATION OF THE QUALITY OF LIFE THEY HAVE GROWN USED TO IN THE US VIRTUALLY ALL OF THEM SAY CALIFORNIA WINS HANDS DOWN OVER CROWDED AND POLLUTED TAIWAN INSTEAD PATRIOTISM AND A CHANCE TO BUILD AN INDUSTRY FROM THE GROUND UP ARE AMONG THE STRONGEST APPEALS TO RETURN TAIWAN HAS ONE OF THE HIGHEST PERCAPITA FOREIGNEXCHANGE RESERVES IN THE WORLD AND A LARGE POOL OF BASIC ENGINEERING TALENT AS A RESULT THE ISLAND NATION HAS BEEN ABLE TO PROVIDE HUMAN AND FINANCIAL CAPITAL THAT HAS ALLOWED MIDDLELEVEL EXECUTIVES IN THE US TO START THEIR OWN SUCCESSFUL BUSINESSES THE AMERICAN DREAM CAN COME TRUE IN TAIWAN SAYS CHIYUAN LIANG AN ECONOMIST AT ACADEMIA SINICA A STATESPONSORED RESEARCH INSTITUTE PATRICK WANG SPENT 21 YEARS IN THE US WHERE HE WAS A MICROWAVE RESEARCHER AT HEWLETTPACKARD CO IN SILICON VALLEY BEFORE RETURNING WITH SEVEN COLLEAGUES TO FOUND MICROELECTRONICS TECHNOLOGY INC IN 1983 THE COMPANY WHICH NOW EMPLOYS 750 AT ITS SPRAWLING HEADQUARTERS IN THE HSINCHU PARK MAKES STATEOFTHEART TELECOMMUNICATIONS COMPONENTS AND SATELLITE ANTENNAS INCLUDING THE 80POUND UPLINK USED BY CNN IN IRAQ SALES IN 1991 REACHED 81 MILLION AND MR WANG AND HIS FAMILY'S 945 STAKE OF THE COMPANY'S PUBLICLY TRADED SHARES NOW HAS A MARKET VALUE OF MORE THAN 19 MILLION I DIDN'T HAVE ANY BAD FEELING ABOUT COMING BACK MR WANG SAYS HP IS A GREAT COMPANY AND CALIFORNIA IS BEAUTIFUL BUT WE SENSED THAT SOMETHING WAS HAPPENING IN ASIA SUCH SUCCESS STORIES COUPLED WITH EXPANDING OPPORTUNITIES AT RESEARCH CENTERS AND UNIVERSITIES THROUGHOUT THE REGION HAVE MADE RECRUITING TALENT FROM THE US MUCH EASIER IN RECENT YEARS BUT SO HAVE CUTBACKS IN THE US DEFENSE INDUSTRY AT GIANTS SUCH AS IBM AND IN THE POOL OF US MONEY AVAILABLE TO FUND BASIC SCIENTIFIC RESEARCH EDWARD CHANG LEFT A COMFORTABLE HOUSE IN HUNTINGTON NY AND HIS POSITION AS A GENETICS RESEARCHER AT THE PRESTIGIOUS COLD SPRING HARBOR LABORATORY TO JOIN TAIWAN'S DEVELOPMENT CENTER FOR BIOTECHNOLOGY IN RECENT YEARS AT COLD SPRING HARBOR HE SAYS HE HAD TO COMPETE HARD TO WIN GRANTS THAT STILL LEFT HIM WITH BARELY ENOUGH MONEY TO HIRE A TECHNICIAN AFTER COVERING HIS SALARY AND EXPENSES AT THE CENTER IN TAIPEI ON THE OTHER HAND HE HAS VIRTUAL CARTE BLANCHE IN ADDITION HE AND HIS WIFE ALSO A SCIENTIST ARE NOW NEAR THEIR AGING PARENTS THEY CAN MORE EASILY OBTAIN CHILD CARE FOR THEIR TWO CHILDREN AND ARE ABLE TO SAVE MORE BECAUSE THEY LIVE IN A FAMILYOWNED APARTMENT AND ARE SUBJECT TO TAIWAN'S LOWER INCOME TAX RATE LIFE IN THE US WAS LIKE FIGHTING A WAR EVERY DAY MR CHANG SAYS NEVERTHELESS ASIAN RECRUITERS STRESS THAT THE NUMBER OF RETURNEES STILL REPRESENTS ONLY A FRACTION OF THE TOTAL OF NATIVE SCIENTISTS AND ENGINEERS LIVING AND WORKING ABROAD IN FACT THE REGION STILL SUFFERS A LARGE NET LOSS OF TALENT IF YOU WANT AN ENVIRONMENT WHERE PEOPLE CAN THINK FREELY ENGAGE IN ACADEMIC DEBATE AND HAVE ACCESS TO THE RIGHT EQUIPMENT THEN THERE IS NO OTHER PLACE LIKE THE US SAYS CHIAWEI WOO HEAD OF THE NEW HONG KONG UNIVERSITY OF SCIENCE & TECHNOLOGY DR WOO HIMSELF WAS CHANCELLOR OF SAN FRANCISCO STATE UNIVERSITY BEFORE ACCEPTING HIS CURRENT POST AND HE HAS SUCCESSFULLY LURED MORE THAN 200 FELLOW ETHNIC CHINESE ACADEMICS FROM THE US TO FILL OUT HIS FACULTY IN HONG KONG EVEN SO HE CALLS THE RETURNEE PHENOMENON A REVERSE BRAIN TRICKLE AND SAYS IT WILL BE A LONG TIME BEFORE THE FOUR DRAGONS CAN ATTAIN THE KIND OF WEALTH AND SCIENTIFIC PROWESS THAT WILL ALLOW THEM TO COMPETE WITH THE US JAPAN AND EUROPE IN THE REALM OF BASIC RESEARCH MOST ANALYSTS AGREE FOR THE TIME BEING THEY SAY THE DRAGONS WILL HAVE TO CONCENTRATE MUCH MORE ON DEVELOPING MARKETABLE PRODUCTS BY REFINING EXISTING TECHNOLOGY THAN ON MAKING SCIENTIFIC BREAKTHROUGHS IF WE CAN IMPROVE TECHNOLOGY EVENTUALLY THE BREAKTHROUGHS WILL COME BUT I DON'T THINK WE CAN COME UP WITH SOMETHING LIKE THE TRANSISTOR OR THE LASER THAT IS A LONG TIME OFF SAYS KOREA'S DR KIM UNTIL THEN ASIA WILL STILL REMAIN DEPENDENT ON FOREIGN KNOWHOW AND WILL CONTINUE TO TRY TO ENTICE ITS BEST MINDS TO RETURN HOME WITH WHAT THEY HAVE LEARNED HIGHTECH PRODUCTS ARE EVERCHANGING SAYS MR HSIEH THE HSINCHU PARK ADMINISTRATOR SO WE NEED A CONSTANT INJECTION OF NEW BLOOD MR ZUCKERMAN IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S HONG KONG BUREAU 9305240172 930524 TECHNOLOGY A SPECIAL REPORT GENIUS THE CREATIVE EDGE NURTURING HIGHTECH TALENT REQUIRES A DELICATE BALANCING ACT BUT THE PAYOFF CAN BE HUGE BY LAURENCE HOOPER JOEL BIRNBAUM WOULD DO ALMOST ANYTHING TO KEEP HIS TINY CADRE OF GENIUSES HAPPY THE HEWLETTPACKARD CO EXECUTIVE WOULD BUILD A SPECIAL SOUNDPROOF OFFICE IN ONE SECOND IF HE DISCOVERED THAT A TRUE GENIUS WANTED PERFECT QUIET NO ONE HAS ASKED HIM TO DO IT YET HE WOULD HIRE ANOTHER SECRETARY NO QUESTION IF AN EXTRAORDINARY PERSON WANTED TO WORK AT NIGHT AS WELL AS DURING THE DAY AGAIN NO ONE HAS TESTED HIM HE AWARDS EXTRA VACATIONS TO GENIUSES HE FEARS MIGHT BURN OUT HE DOESN'T BOTHER HIS HIGHEST ACHIEVERS IF THEY DON'T SHOW UP FOR WORK EVEN IF IT'S FOR WEEKS AT A TIME CERTAIN PEOPLE I KNOW THEY'RE SITTING UNDER A PALM TREE THINKING ABOUT TRANSISTORS HE SAYS AND THAT'S FINE BY ME DR BIRNBAUM EVEN FEELS IT'S HIS DUTY TO ACT AS IMPROMPTU PSYCHOLOGIST OFTEN DITCHING HIS OWN WORKHE OVERSEES RESEARCH AND DEVELOPMENT FOR HEWLETTPACKARDTO PLUMB THE PERSONAL PROBLEMS OF HIS MOST PRIZED EMPLOYEES I NEED TO UNDERSTAND WHAT THEIR ASPIRATIONS ARE AND THEIR WORST FEARS HE SAYS HE SOMETIMES ROAMS THE HALLS OF HEWLETTPACKARD'S MAIN LAB LOOKING FOR PEOPLE WHO NEED TO TALK SOMETHING OUT THESE GUYS ARE THE RARE RARE JEWELS SAYS DR BIRNBAUM WHO HAS ALSO RUN INTERNATIONAL BUSINESS MACHINES CORP'S COMPUTERRESEARCH OPERATION THEY ARE THE CURRENCY OF THE REALM I THINK EVERYBODY REALIZES YOU CAN'T HAVE A GREAT COMPANY WITHOUT THEM HIGH TECHNOLOGY MORE THAN JUST ABOUT ANY OTHER INDUSTRY HAS BRAINPOWER AS ITS RAW MATERIAL IT'S MOST EVIDENT IN THE FIELD OF COMPUTER SOFTWARE WHICH AT ITS CORE IS MERELY THOUGHT THAT HAS BEEN TRANSCRIBED SO A MACHINE CAN FOLLOW IT BUT IT'S ALSO TRUE FOR A BIOENGINEERED VACCINE OR A POCKET TELEPHONE OR A CUTTINGEDGE COMPUTER CHIP ALMOST BY DEFINITION ANY GENUINELY HIGHTECH PRODUCT IS THE RESULT OF AT LEAST ONE IDEA THAT HAD NEVER BEEN THOUGHT BEFORE WHATEVER ITS PATH TO THE MARKETPLACE EVERY SUCH IDEA COMES FROM A SPECIFIC PERSON AND IF THE IDEA IS POWERFUL ENOUGH TO SHAKE OUR WORLD AS DID TELEVISION AND MORE RECENTLY THE MICROPROCESSOR THAT PERSON CAN REASONABLY BE CALLED A GENIUS AMONG THE GENERAL PUBLIC HIGHTECH GENIUSES SOMETIMES ARE REGARDED AS 20THCENTURY WIZARDS THEIR MYSTIC POWERS UNFATHOMABLE AND UNRELATED TO EVERYDAY BUSINESS CONCERNS PERHAPS MORE OFTEN THEY ARE IGNORED COMPLETELY OVERSHADOWED BY THE USEFULNESS OF THE WHIZBANG PRODUCTS THEY HAVE HELPED CREATE QUICK NAME THE INVENTOR OF TELEVISION BUT INSIDE HIGHTECH CIRCLES INDIVIDUAL GENIUS DOESN'T GET SUCH A KISSOFF IT ISN'T SEEN AS MAGICAL AND IT'S NEVER IGNORED IT IS A VERY REAL ASSET GOLD DUST HOARDED FOR ITS VALUENOT PIXIE DUST ADMIRED FOR ITS SPARKLE AFTER A MOMENT OF REVERENCE AWE IN SOME CASES EVERY SAVVY TECHNOLOGY EXECUTIVE WILL POUNCE ON A GENIUS AND IF EVERYTHING WORKS OUT THAT GENIUS WILL BECOME A HUGE COMPETITIVE ADVANTAGE IN A CUTTHROAT WORLD A VITAL FORCE THAT WILL SEPARATE HIGHTECH INDUSTRY LEADERS FROM ALSORANS NEW WAYS OF THINKING CATCH FIRE WITH STARTLING SPEED AND COMPANIES THAT DON'T TAP THEIR BEST MINDS TO ANTICIPATE THESE SHIFTS OR BETTER YET TO CAUSE THEM CAN FOUNDER QUICKLY IN TECHNOLOGY THERE IS ALWAYS MORE RISK AND MORE CHANGE AND MORE COMPLEXITY TO BE MANAGED SAYS WILLIAM O'RIORDAN HEAD OF RESEARCH AND ADVANCED TECHNOLOGY FOR ICL PLC THE BRITISH COMPUTER COMPANY OWNED BY FUJITSU LTD OF JAPAN IF YOU GET YOUR HANDS ON A REAL GENIUS YOU'RE WELL AHEAD OF THE GAME AS A RESULT GENIUS IS BEING COURTED MORE ASSIDUOUSLY THAN EVER AND ONCE BRILLIANCE IS ABOARD ITS CARE AND FEEDING BECOMES A TOP CORPORATE PRIORITY MOST GREAT TECHNOLOGIES AND MOST GREAT TECHNOLOGY COMPANIES HAVE BEEN FOUNDED ON JUST ONE SMART PERSON OR A VERY SMALL NUMBER OF SMART PEOPLE SAYS NATHAN MYHRVOLD THE TOP SCIENTIST AT MICROSOFT CORP IT'S TRUE THAT YOU NEED A LOT MORE PEOPLE TO FOLLOW THROUGH AND MANY OF THOSE PEOPLE WILL BE VERY INTELLIGENT THEMSELVES BUT THE CREATIVE SPARK THE PERSON WHO POINTS EVERYONE IN THE RIGHT DIRECTION IS CRUCIAL A LITTLE BIT OF GENIUS GOES A VERY LONG WAY NURTURING EXCEPTIONAL PEOPLE IS ANYTHING BUT A SCIENCE LIKE MOST HUMAN ENDEAVORS IT'S LEARNED MESSILY BY TRIAL AND ERROR HOW TO ENCOURAGE CREATIVITY IS ONE OF THE THINGS I'LL BE THINKING ABOUT UNTIL I DIE ADMITS JOSEPH GUGLIELMI CHAIRMAN OF TALIGENT INC A CUPERTINO CALIF DEVELOPER OF NEXTGENERATION SOFTWARE YOU CAN'T JUST PUT SOME ENGINEERS TOGETHER AND SAY COME UP WITH THE NEXT GREAT IDEA' SAYS JACQUES NOELS PRESIDENT OF ZENITH DATA SYSTEMS A BUFFALO GROVE ILL UNIT OF FRANCE'S CIE DES MACHINES BULL IT CAN COME FROM ANYWHERE IN THE ORGANZIATION STILL BROAD PRINCIPLES FOR MANAGING HIGHTECH GENIUS SEEM TO BE EMERGING THE PROCESS STARTS NATURALLY WITH RECRUITMENT DISCOVERING PEOPLE WHO HAVE SOMETHING SPECIAL AND ASSEMBLING THEM INTO A CREW THAT WILL BRING OUT THE BEST IN EACH MEMBER THE MAJOR WAY TO SPOIL A CREATIVE EFFORT IS THROUGH BAD HIRING SAYS WAYNE ROSING PRESIDENT OF FIRST PERSON CORP A PALO ALTO CALIF SPINOFF OF SUN MICROSYSTEMS INC THAT'S EXPLORING NEW CONSUMERELECTRONICS AREAS THE KEY TO MAKING A COMPANY BURST WITH GREAT IDEAS HE ARGUES IS THE PERSONAL TOUCH THE BALANCING OF PERSONALITIES AT IBM TOO HIRING IS CRITICAL EXCEPTIONAL CANDIDATES ARE MONITORED LONG BEFORE THE COMPUTER GIANT EXTENDS AN OFFER WHILE STILL GRADUATE STUDENTS THEY WILL BE VISITED ON CAMPUS BY IBM RESEARCHERS SOME PROSPECTS MAY BE INVITED TO PRESENT PAPERS AT IBM OR WORK FOR THE COMPANY DURING THE SUMMER AND BEFORE ALL CANDIDATES GO THROUGH BIG BLUE'S TWODAY INTERVIEW PROCESS THEY MUST GIVE A SEMINAR FOR THE COMPANY'S SCIENTISTS THE KEY THING WE DO IS RECOGNIZE THAT SPECIAL SPARK SAYS JAMES MCGRODDY IBM'S HEAD OF SCIENCE AND TECHNOLOGY WE TRY TO GET TO KNOW PEOPLE VERY WELL BEFORE WE HIRE THEM WHEN IT COMES TO GENIUS IBM'S JOB DESCRIPTION HAS NOTHING TO DO WITH GRADUAL ADVANCES DESPITE IBM'S RECENT FINANCIAL PROBLEMS ITS LABORATORIES IN THE US EUROPE AND JAPAN REMAIN AMONG THE WORLD'S PREMIER RESEARCH INSTITUTIONS THE COMPANY IS INTERESTED IN DEVELOPING A SOCIETY OF ICONOCLASTS WHO CAN POINT IT IN COMPLETELY NEW DIRECTIONS WE'RE LOOKING FOR THINGS THAT ARE OFF THE STRAIGHTAHEAD PATH SAYS DR MCGRODDY THERE ARE THINGS WE DON'T KNOW AND WE HAVE TO TRUST IN OUR PEOPLE TO DISCOVER THEM BECAUSE IBM GIVES ITS TOP RESEARCHERS A LOT OF FREEDOM IT ALSO WORRIES ABOUT PERSONAL DISCIPLINE ESPECIALLY LATELY SINCE THE COMPANY WANTS TO TURN MORE OF ITS RESEARCH INTO MARKETABLE PRODUCTS HIGH ON BIG BLUE'S AGENDA THESE DAYS ACCORDING TO DR MCGRODDY ARE THESE PEOPLE WHO ACTUALLY GET THINGS DONE ONCE RECRUITING IS DONE THE FOCUS TURNS TO RETENTION THIS IS WHERE PERSONALIZED ATTENTION STARTS PLAYING A BIG ROLE AND WHERE COMPANIES START MAKING STRONG DISTINCTIONS BETWEEN VANILLASMART PEOPLE AND THE TRULY GIFTED WE DON'T REALLY USE THE WORD GENIUS IN OUR COMPANY BUT WE HAVE A VERY KEEN INTEREST IN IDENTIFYING PEOPLE WHO ARE OFF THE SCALE SAYS ERIC BENHAMOU PRESIDENT AND CHIEF EXECUTIVE OF 3COM CORP SANTA CLARA CALIF THERE'S AN ORDER OF MAGNITUDE DIFFERENCE BETWEEN AVERAGE AND GENIUS WHEN YOU'RE EXPOSED TO THEM THEY REALLY STAND OUT THE COMPUTERNETWORKING COMPANY DOESN'T LEAVE THE IDENTIFICATION PROCESS TO CHANCE IT EMPLOYS AN EXTENSIVE RATING SYSTEM FOR ITS 2000 EMPLOYEES BESIDES IDENTIFYING MANAGEMENT TALENT MR BENHAMOU PERSONALLY REVIEWS THE PROGRESS OF ANYONE WHOSE TECHNICAL CREATIVITY IS LISTED AS FAR EXCEEDING THAT OF ANY PEER I CAN'T POSSIBLY KNOW EVERYONE HE SAYS BUT I WANT TO KNOW ANYONE WHO APPROACHES THIS CLASS OF INDIVIDUAL MR BENHAMOU THEN GIVES THE EMPLOYEES SPECIAL ATTENTION SCHEDULING LUNCHES SENDING NOTES DROPPING BY DESKS IT ALL TAKES PLACE AT THE LEVEL OF HUMAN RELATIONS SAYS MR BENHAMOU EVERY ONE OF THESE INDIVIDUALS SHOULD BE TREATED AS A SPECIAL CASE AND KEPT HAPPY SO THEY AREN'T TEMPTED TO LEAVE BECAUSE 3COM MAKES A POINT OF ITS EGALITARIAN CULTURE IT HAS NO PRIVATE OFFICES AND EVERYONE HAS IDENTICAL OFFICE FURNITURE THIS CAN BE A DELICATE BALANCING ACT IF THE COMPANY ACTS IN FRIVOLOUS WAYS IT CAN ENGENDER CYNICISM NOTES MR BENHAMOU BUT I THINK EVERYONE UNDERSTANDS THAT GENIUSES DESERVE TO HAVE SOME ADVANTAGES AS LONG AS THEY AREN'T SPECIAL ARROGANT PERKS THESE PEOPLE HAVE DEMONSTRATED THEIR WORTH TO THE COMPANY AT AMERICAN TELEPHONE & TELEGRAPH CO'S FAMED BELL LABORATORIES LAB DIRECTOR ARNO PENZIAS SPURS THOUGHT BY KEEPING SMALL PERKS FLOWING FREELY TO PUBLICLY RECOGNIZE FEATS OF CREATIVITY DR PENZIAS A NOBEL PRIZE WINNER HANDS OUT TSHIRTS WITH A JOKE SLOGAN THAT ALLUDES TO HIS PRIZEWINNING COSMOLOGICAL DISCOVERY DR PENZIAS ALSO DISTRIBUTES LOTS OF CANDY BARS INCLUDING HUGE CHOCOLATE BARS FOR ESPECIALLY GOOD IDEAS AND FIRES OFF A COUPLE DOZEN BENEVOLENT NOTES EVERY WEEK SMALL REWARDS HE SAYS TO AIM PEOPLE IN THE RIGHT DIRECTION HIS OFFICE MAINTAINS A COMPUTERIZED DATABASE TO ENSURE THAT NO ONE AT BELL LABS GETS THE SAME GIFT TWICE MICROSOFT'S DR MYHRVOLD SAYS HIS COMPANY IS WARY OF SINGLING OUT SUPERTALENTED INDIVIDUALS EXCEPT IN PRIVATE WAYS SUCH AS SALARY BOOSTS BUT HE QUICKLY ADDS THAT IT WOULD BE INEFFICIENT TO TREAT EVERYONE EXACTLY THE SAME THE DIFFERENCE BETWEEN AN AVERAGE PRODUCER AND THE VERY BEST PRODUCER CAN BE ENORMOUS HE EXPLAINS A FACTOR OF 1000 SOMETIMES AS A RESULT RECOGNIZING THE QUIRKS OF EXTRACREATIVE PEOPLE CAN PAY OFF HANDSOMELY FOR EXAMPLE THERE'S ONE PERSON HERE WHO CREATES MORE BRILLIANT IDEAS THAN ANYONE I KNOW HE SAYS THE PROBLEM IS HE ALSO CREATES MORE STUPID IDEAS THAN ANYONE I KNOW HE'S JUST AN IDEA FAUCET MICROSOFT'S SOLUTION LEAVE HIM ALONE BUT MAKE SURE SOMEONE SMART IS ALWAYS WATCHING THIS FAUCET SEPARATING THE BRILLIANT IDEAS FROM THE STUPID ONES LIKE 3COM AND OTHER COMPANIES MICROSOFT ALSO DOESN'T FORCE ITS MOST BRILLIANT LONERS TO WORK IN GROUPS SO IN SOME SENSE WE DO TREAT GENIUSES DIFFERENTLY CONCEDES DR MYHRVOLD WE TRY TO TAILOR THEIR ENVIRONMENT SO IT MAKES THEM MOST EFFECTIVE WHEN IT COMES TO NURTURING GENIUS THE WORD ENVIRONMENT COMES UP A LOT SOMETIMES THE WORD HAS TO DO WITH FACILITIES OR ATMOSPHERE AT BELL LABS FOR EXAMPLE DR PENZIAS BOASTS OF A LARGE CONVENTIONAL LIBRARY WHERE PEOPLE CAN STILL GO UP AND DOWN THE STACKS RUNNING THEIR HANDS ALONG THE SPINES OF BOOKS AT SUN MICROSYSTEMS WHERE HE USED TO HEAD THE RESEARCH OPERATION MR ROSING TOUTS THE FACT THAT MOST WORKERS HAVE THEIR OWN OFFICE ENSURING QUIET MANY COMPANIES MENTION WEEKLY BEER BASHES AND SIMILAR SOCIAL GATHERINGS OR HEALTH CLUBS AND DAYCARE CENTERS MICROSOFT OFFERS ITS EMPLOYEES 40 VARIETIES OF FREE SOFT DRINKS TALIGENT ORDERS IN TOPNOTCH FOOD FOR EMPLOYEES WHO WORK LATE IN JAPAN TOSHIBA CORP BOASTS FLEXIBLE SCHEDULES AND SPECIAL BLUE SKY ROOMS WHERE RESEARCHERS RELAX AND MINGLE SWAPPING IDEAS OR SIMPLY MEDITATING AT ZENITH DATA SYSTEMS MR NOELS HAS MADE A POINT OF HOLDING GROUP MEETINGS WITH A WIDE RANGE OF EMPLOYEES DOES ANY OF THIS MEAN THAT WE GET BETTER IDEAS ASKS DR MYHRVOLD OF MICROSOFT IT'S HARD TO SAY I THINK IT MAKES PEOPLE FEEL BETTER AND THAT'S IMPORTANT IT'S ABOUT REMOVING BARRIERS WHICH IS ONE OF THE FEW STRAIGHTFORWARD THINGS WE CAN DO TO ENCOURAGE CREATIVITY MORE OFTEN THOUGH ENVIRONMENT HAS TO DO WITH HOW IDEAS ARE RECEIVED AND ESPECIALLY HOW COMFORTABLE A COMPANY IS WITH RISK THE LEVEL OF SUCCESS IS VERY DEPENDENT ON THE LEVEL OF RISK SAYS AKINOBU KASAMI DIRECTOR OF TOSHIBA'S RESEARCH AND DEVELOPMENT CENTER IN KAWASAKI JAPAN OUR YOUNG SCIENTISTS KNOW THAT FAILURE IS NOT SO SERIOUS IF THEY TAKE A HIGH RISK IF THEY GET A NEW EXPERIENCE THAT IS THE IMPORTANT THING DR BIRNBAUM OF HEWLETTPACKARD AGREES EARLIER THIS YEAR FOR EXAMPLE THE COMPANY PULLED THE PLUG ON FIVE YEARS OF INTENSIVE RESEARCH INTO HIGHTEMPERATURE SUPERCONDUCTIVITY SUCCESSFUL APPLICATIONS WERE JUST NOT IN THE CARDS FOR OUR BUSINESS ANYWAY ACCORDING TO DR BIRNBAUM BUT INSTEAD OF BEMOANING THE FAILURE HEWLETTPACKARD CELEBRATED THE STYMIED RESEARCHERS WERE GIVEN RAISES AND STOCK OPTIONS LEWIS PLATT HEWLETTPACKARD'S CHIEF EXECUTIVE OFFICER CAME TO HONOR THE ABORTED PROJECT AT A BIG PARTY THE THEME FOR THE EVENT AN IRISH WAKE WE MUST LET PEOPLE KNOW IT'S OK TO BE WACKY SAYS DR BIRNBAUM GENIUSES WHO OFTEN TACKLE TRULY TOUGH PROBLEMS NEED THIS TYPE OF ENCOURAGEMENT SO THEY CAN GATHER THE PERSONAL STRENGTH TO WORK IN FIELDS WHERE THEY DON'T GET MUCH SUPPORT FROM THEIR PEERS AGREES DR MCGRODDY OF IBM WE TELL PEOPLE WE'RE AWARE THAT IF YOU'RE NOT UP AGAINST THE STONE WALL YOU'LL NEVER BREAK THROUGH IT BIG BLUE CAN BACK UP ITS MAXIM IBM SCIENTISTS WHO WON A NOBEL PRIZE FOR DISCOVERING HIGHTEMPERATURE SUPERCONDUCTIVITY ENDURED MUCH RIDICULE EVEN FROM FELLOW IBMERS AS THEY TRIED TO PROVE THAT SOME CERAMIC SUBSTANCES COULD LOSE ALL THEIR RESISTANCE TO ELECTRICITY A SEEMINGLY UNLIKELY PROSPECT SINCE THE MATERIALS DON'T CONDUCT ELECTRICITY EVEN IN NORMAL CIRCUMSTANCES GOOD PEOPLE SHOULDN'T EVEN HAVE BEEN WORKING WITH CERAMICS SAYS DR MCGRODDY BUT THEY SET THEIR OWN AGENDA AT FIRST PERSON MR ROSING IS EVEN STRICTER FOR HIM GETTING RID OF NAYSAYERS IS AN ABSOLUTE PRIORITY YOU HAVE TO LOOK FOR THE PEOPLE WHO HAVE EGO NEEDS TO DUMP ON PEOPLE AND GET RID OF THEM HE SAYS YOU HAVE TO HAVE AN ENVIRONMENT WHERE PEOPLE CAN SPEAK UP YOU HAVE TO FEEL LIKE IT'S SAFE TO TAKE A RISK ANOTHER REQUIREMENT FOR A GENIUSFRIENDLY ENVIRONMENT A CONVINCING SENSE OF DIRECTION FOR CREATIVE PEOPLE TO STAY MOTIVATED THEY NEED TO BE CHALLENGED SAYS MR BENHAMOU OF 3COM WHO PROVIDES HIS CHARGES WITH LOOSE GUIDANCE ON WHAT KIND OF WORK THEY SHOULD BE DOING HE WILL TELL THEM FOR INSTANCE TO INVESTIGATE HIGHSPEED NETWORKING TALIGENT'S MR GUGLIELMI DOES THE SAME THING WITH HIS SOFTWARE DEVELOPERS AND LIKENS HIMSELF TO A RATHER VAGUE BASKETBALL COACH I TELL MY TEAM WE'RE IN THE FIRST HALF AND WE'RE DOWN 34 TO 29 WE NEED TO WIN THAT'S ALL I WON'T TELL THEM THE NEXT 25 PLAYS THEY SHOULD MAKE AT HEWLETTPACKARD BY CONTRAST THE DIRECTION CAN BE VERY SPECIFIC BUT HUGELY CHALLENGING WE MIGHT TELL SOMEONE TO THINK ABOUT MAKING A HANDHELD GAS CHROMATOGRAPH A MEASURING INSTRUMENT SAYS DR BIRNBAUM NOW THAT SOUNDS LIKE A VERY DETAILED TASK MORE LIKE PRODUCT DEVELOPMENT THAN RESEARCH EXCEPT THAT A GAS CHROMATOGRAPH RIGHT NOW IS THE SIZE OF AN OVEN WITHOUT SOME DIRECTION EVEN A GENIUS MAY WASTE TIME IN BLIND ALLEYS OR GET DISCOURAGED ENOUGH TO LEAVE A COMPANY AT BELL LABS FOR EXAMPLE DR PENZIAS TELLS OF SOME TRULY BRILLIANT WELLPUBLICIZED WORK ON MICROSCOPIC COGS THAT COULD BE ASSEMBLED INTO A GEAR SYSTEM USING CHIPMAKING METHODS THE PROBLEM WAS NO ONE HAD THOUGHT ABOUT WHETHER THE GEAR SYSTEMS WHICH WORE OUT AFTER A FEW HOURS WOULD BE USEFUL FOR ANYTHING AS IT TURNED OUT THEY WEREN'T WE DIDN'T PRODUCE ANYTHING THAT BENEFITED SCIENCE OR SOCIETY HE SIGHS BLAMING HIMSELF RATHER THAN THE SCIENTISTS WHO WORKED ON THE PROJECT WE HADN'T THOUGHT ABOUT A CUSTOMER IN ADVANCE LEERY OF REPEATING SUCH EXPERIENCES MANY COMPANIES NOW SEND THEIR RESEARCHANDDEVELOPMENT TEAMS ON ROUTINE VISITS TO CUSTOMER SITES SO THEY CAN KEEP IN CONTACT WITH THE REAL WORLD THE BONDS BETWEEN THEIR R&D AND MARKETING ORGANIZATIONS ARE GETTING CLOSER PROVIDING A CRUCIAL SANITY CHECK SAYS BERNIE MEYERSON A TOP IBM RESEARCHER THIS ISN'T UNCONTROVERSIAL MANY EUROPEAN RESEARCHERS FOR INSTANCE HAVE NO ACTUAL END USER IN MIND AND THEY'RE PROUD OF IT SAYS ICL'S PROF O'RIORDAN PEEVISHLY THEY THINK THAT IF THEY FOCUS ON A CUSTOMER THEY PROSTITUTE THEMSELVES BATTLING THIS ATTITUDE ICL HAS STARTED SENDING ITS TOP INNOVATORS NOT JUST TO VISIT CUSTOMERS BUT TO WORK CLOSELY WITH THEM ON IMPORTANT PROJECTS THE PLOY WAS ALMOST TOO SUCCESSFUL SOME OF ICL'S TOP GERMAN COMPUTER SCIENTISTS TRAVELED TO HONG KONG TO DEVELOP A NEW TYPE OF AIRLINE COMPUTER SYSTEM FOR CATHAY PACIFIC THE PREVIOUSLY DISCONNECTED BOFFINS WERE THRILLED TO SEE THEIR EXPERTISE AT WORK IN THE REAL WORLD NOW THEY WANT TO BECOME MARKETING TYPES AT ICL SO THEY CAN EVANGELIZE ICL'S ADVANCES THEY'VE GONE BLOODY NATIVE ON US CARPS DR O'RIORDAN WHO FEARS HE WILL LOSE SOME OF HIS BEST MINDS SUCH TALES OF GLOBAL INTERMINGLING ARE COMMON THESE DAYS BRAINS FLIT FROM CONTINENT TO CONTINENT CROSSPOLLINATING AND PRODUCING NEW FEATS OF CREATIVITY BUT GENIUS ISN'T TREATED THE SAME WORLDWIDE CREATIVITY IS NURTURED FAR DIFFERENTLY IN THE US JAPAN AND EUROPE IN PART BECAUSE OF DIFFERENT NOTIONS OF WHAT A GENIUS SHOULD BE AND WHILE NO COUNTRY CLAIMS A LOCK ON BRILLIANCE MANY TECHNOLOGY EXECUTIVES SUGGEST THAT A GENIUS IS MOST PRODUCTIVE IN THE US WHY ISN'T JAPAN NO 1 JAPANESE COMPANIES ARE VERY FOCUSED ON FOSTERING INNOVATION THEY OFTEN LIST IT AS THEIR TOP CONCERN FURTHERMORE ALMOST NO TECHNOLOGIST SUBSCRIBES TO THE CLICHED VIEW THAT JAPAN'S CULTURE OF CONSENSUS STIFLES TECHNICAL GENIUSES BUT THE RIGHT PRIORITIES DON'T ALWAYS ENSURE THE RIGHT RESULT SAYS JERRY BENSON OF NEC TECHNOLOGIES INC A US UNIT OF JAPAN'S NEC CORP THE ELECTRONICS BEHEMOTH IN PRACTICE HE SAYS JAPANESE COMPANIES SIMPLY IGNORE SOME OF THE PRINCIPLES LISTED ABOVE TRUE RESEARCHERS IN JAPAN OFTEN GET AN ENORMOUS AMOUNT OF FREEDOM BUT THAT'S THE PROBLEM MANY OF JAPAN'S GENIUSES FOUNDER FOR LACK OF GUIDANCE THIS IS THE REASON FOR SOME OF THE JAPANESE DISAPPOINTMENT WITH BASIC RESEARCH SAYS DR PENZIAS OF BELL LABS VERY OFTEN THEY MAKE THE MISTAKE THAT WHAT THEY HAVE TO DO IS HIRE PEOPLE AND LEAVE THEM ALONE AT THE SAME TIME SAYS NEC'S MR BENSON JAPANESE PRODUCTDEVELOPMENT TEAMS OFTEN RELY ON PUBLIC INFORMATION NOT THEIR OWN VISIONS OR THOSE OF THEIR RESEARCHERS FOR IDEAS ABOUT NEW PRODUCTS THE RESULT JAPAN'S FADDY ELECTRONICS MARKET WHICH WASTES MUCH OF ITS CREATIVITY PLAYING CATCHUP AND DEVELOPING TECHNICAL ADVANCES OF DUBIOUS MERIT SUCH AS FUZZY LOGIC CIRCUITS ULTIMATELY ONLY A FEW COMPANIES ENCOURAGE OUTSIDETHEBOX THINKING A JAPANESE COMPANY IS MORE LIKELY TO CONVERGE ON A PLACE WHERE ALL THE OTHER COMPANIES ARE HEADING SAYS MR BENSON THE RESULT IS A LOT OF COMPANIES WITH THE SAME PICTURE OF THE FUTURE TRYING TO ELBOW THEIR WAY INTO THE MARKETPLACE TOSHIBA'S DR KASAMI SAYS JAPANESE CULTURE IS CHANGING TO CORRECT ITS FLAWS AT TOSHIBA FOR EXAMPLE THE COMPANY HAS LONG TRIED TO BALANCE GUIDANCE WITH FREEDOM RESEARCHERS GIVE 90 OF THEIR TIME AND BUDGET TO COMPANYAPPROVED ACTIVITIES BUT THEY GET TO DO WHATEVER THEY WANT WITH THE REMAINING 10 TOSHIBA CALLS THIS ITS UNDER THE TABLE SCHEME AND CREDITS IT WITH SPAWNING SUCH ADVANCES AS A JAPANESE WORD PROCESSOR THE COMPANY ALSO TRIES TO ENCOURAGE NEW THINKING BY TEAMING RESEARCHERS WITH PEOPLE FROM DIFFERENT FIELDS OR DIFFERENT COUNTRIES WE ARE GRADUALLY GROWING OUR ABILITY FOR CREATIVITY IN JAPAN HE SAYS BUT IT TAKES TIME I THINK MEANWHILE IN EUROPE THERE CAN BE TOO MUCH EMPHASIS ON THINGS THAT HAVE NOTHING TO DO WITH TECHNOLOGY AESTHETICS FOR EXAMPLE AND ESPECIALLY BUREAUCRACY THIS CAN FORCE GENIUS INTO VERY NARROW CHANNELS AND MAY HELP EXPLAIN EUROPE'S POSITION AS A TECHNOLOGY LAGGARD EUROPEANS HAVE LEARNED TO BE VERY CREATIVE WITH VERY LITTLE SAYS ENRICO PESATORI HEAD OF DIGITAL EQUIPMENT CORP'S PERSONALCOMPUTER BUSINESS AND A FORMER EXECUTIVE OF ITALY'S ING C OLIVETTI & CO THAT LEADS THEM TO FOCUS THEIR INNOVATION ON AREAS SUCH AS INDUSTRIAL DESIGN IMPORTANT AREAS BUT NOT THE KEY TO TECHNOLOGICAL COMPETITIVENESS SUCH ONESIDED THINKING EVAPORATES IN THE RIGHT ENVIRONMENT HE NOTES MANY EUROPEANS SHOW A GREAT DEAL OF TECHNICAL CREATIVITY WHEN THEY'RE IN THE US BECAUSE THE US HAS STRUCTURED A SYSTEM THAT REWARDS CREATIVITY THE KEY TO REVIVING EUROPEAN TECHNICAL GENIUS ACCORDING TO MR PESATORI IS COMBINING MAJOR NEW INVESTMENTS WITH A DIFFERENT ATTITUDE AND A BAN ON BUREAUCRACY THIS IS SOMETHING THAT HAS TO COME FROM THE TOP HE SAYS IT SHOULD BE IN THE CHARTER OF EVERY COMPANY OF COURSE THE US ALSO HAS ITS FAULTS WHEN IT COMES TO GENIUS MOST NOTABLY THE INEXPLICABLE FAILURES OF LARGE COMPANIES SUCH AS IBM AND XEROX CORP TO BRING THEIR OWN WORLDBEATING INNOVATIONS TO MARKET BUT MANY PEOPLE FEEL SUCH SHORTCOMINGS ARE BEING COMPENSATED FOR BY THE COUNTRY'S WEST COAST WHERE THE ENTREPRENEURIAL CULTURE OF SILICON VALLEY ENSURES THAT NO GENIUS WILL WAIT FOREVER FOR A SUPERIOR TO GET A PROJECT GOING ULTIMATELY THIS MAY PROVE TO BE THE SECRET INGREDIENT FOR COMPANIES WHERE GENIUS THRIVES PERSONAL INVOLVEMENT WEST COAST INNOVATORS TAKE REPONSIBILITY FOR THEIR OWN WORK OFTEN CROSSING TRADITIONAL COMPANY LINES TO FOLLOW A PRODUCT UNTIL IT'S READY TO BE SHIPPEDOR INCREASINGLY FREQUENTLY LEAVING TO FORM THEIR OWN COMPANIES JAPANESE RESEARCHERS OFTEN FOLLOW THEIR PRODUCTS TO THE PRODUCTION LINE TOO BUT SUCH MOVES WHILE VERY USEFUL ARE GENERALLY MANDATED BY TOPDOWN BUREAUCRATS WHAT'S STRONG ABOUT THE WEST COAST IS THE ATTITUDE OF WE'RE GOING TO GO THROUGH THE WHOLE THING FROM START TO FINISH' SAYS MR ROSING OF FIRST PERSON WHO HAS ALSO WORKED AT APPLE COMPUTER INC IN CUPERTINO CALIF AS WELL AS AT DATA GENERAL CORP AND DIGITAL EQUIPMENT ON THE EAST OAST THERE'S NO MYSTIQUE WE JUST DO IT THAT'S HOW YOU GET THE NEW STUFF THE REALLY WILD THINGS IBM IS FORCING ITSELF TO CHANGE HE SAYS BUT ON THE WEST COAST THERE'S A PIONEER IDEAL THAT COMES NATURALLY THAT SPIRIT WAS IN THE LAND IN CALIFORNIA LONG AGO DR BIRNBAUM SAYS IT'S EASIER TO GET THINGS STARTED HERE AND THERE'S A FASTER PACE THE BEAUTY AND POWER OF THIS SMOOTHRUNNING PROCESS SAYS DR BIRNBAUM ARE THE REWARD FOR A COMPANY THAT GOES OUT OF ITS WAY TO NURTURE GENIUS WHEN THINGS GO JUST RIGHT HE SAYS ALMOST BLISSFULLY THERE'S A REAL FLOW MR HOOPER A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU SERVED AS CONTRIBUTING EDITOR OF THIS WALL STREET JOURNAL REPORT THE IDEA CAME WHEN DANIEL BRICKLIN WAS ZONING OUT IN A CLASS AT HARVARD BUSINESS SCHOOL DURING THAT FIRST YEAR YOU GET A LOT OF TIME TO DAYDREAM SAYS THE COMPUTER EXPERT WHO WENT TO HARVARD IN 1977 SO HE COULD START A COMPANY OR BECOME AN INVESTMENT BANKER INSTEAD MR BRICKLIN CAME UP WITH A CONCEPT THAT LAUNCHED DOZENS OF COMPANIES AND MADE LIFE EASIER FOR EVERY INVESTMENT BANKER HIS IDEA TO RECREATE ON A PERSONAL COMPUTER THE ROWANDCOLUMN BUSINESS MODELS HE SAW ON THE BLACKBOARDS IN HIS CLASSES IT WAS A GLORIOUSLY SIMPLE IDEA EVEN THE EARLY PCS OF THAT DAY COULD UPDATE EVERY BOX OF SUCH A SPREADSHEET AUTOMATICALLY FREEING BUSINESS MAVENS TO SPIN WHATIF SCENARIOS WITHOUT TEDIOUS CALCULATIONS IN THE SUMMER OF 1978 RIDING HIS BIKE ON MARTHA'S VINEYARD MR BRICKLIN DECIDED HE WOULD WRITE AND SELL A SPREADSHEET AFTER RETURNING TO HARVARD HE SPENT AN AFTERNOON PROGRAMMING WITH FELLOW STUDENT ROBERT FRANKSTON AND OUTLINED THE PRODUCT THAT WOULD POWER THE PC REVOLUTION VISICALC VISICALC WAS A RESOUNDING SUCCESS HELPING SELL COMPUTERS AND ENSURE FUNDING FOR OTHER PCRELATED STARTUPS UNFORTUNATELY ONE OF THOSE STARTUPS WAS LOTUS DEVELOPMENT CORP A COMPANY FOUNDED BY MITCH KAPOR A TOP VISICALC MARKETER LOTUS'S 123 SPREADSHEET WAS DESIGNED SPECIFICALLY FOR INTERNATIONAL BUSINESS MACHINES CORP'S NEW PC A RISKY BUT INSPIRED MOVE AS MESSRS BRICKLIN AND FRANKSTON SQUABBLED WITH THEIR PUBLISHER DELAYING UPDATES TO VISICALC LOTUS RODE THE IBM PC TO VICTORY BY THE MID1980S MR KAPOR HAD MADE HIS FORTUNE AND LOTUS HAD BOUGHT MOST OF THE ASSETS OF MESSRS BRICKLIN'S AND FRANKSTON'S COMPANY MR BRICKLIN NOW 41 YEARS OLD SAYS HE ISN'T BITTER THAT OTHERS MADE FAR MORE MONEY FROM HIS IDEA THAN HE DID I DON'T SPEND VERY MUCH HE SAYS I ALREADY HAVE A BETTER LIFESTYLE THAN I EXPECTED AND BESIDES HE SAYS HE ISN'T DONE YET FASCINATED BY PCS THAT CAN BE CONTROLLED WITH A PEN DEVICE MR BRICKLIN IS WORKING AT SLATE CORP OF SCOTTSDALE ARIZ TO DEVELOP MORE BREAKTHROUGH TOOLS NOW I REALIZE THAT A SINGLE PERSON CAN MAKE A BIG DIFFERENCE HE SAYS THAT HELPS DRIVE ME ON BACK IN THE 1960S DOUGLAS ENGELBART HELPED CREATE MANY OF THE IDEAS BEHIND PERSONAL COMPUTING INCLUDING ONSCREEN WINDOWS AND OTHER HOTBUTTON PRODUCTS SUCH AS GROUPWARE THAT MAKES HIM A TRUE SUPERSTAR IN HIGHTECH CIRCLES BUT TO THE LOWTECH LAYMAN DR ENGELBART'S FAME IS ASSURED BY ONE THING THE PROSAIC MOUSE POINTING DEVICE NOW STANDARD ISSUE ON EVERY DESKTOP AN ELECTRICAL ENGINEER BY TRAINING DR ENGELBART BLOSSOMED INTO A GENUINE VISIONARY DURING HIS STINT AT THE STANFORD RESEARCH INSTITUTE DURING THE 1960S AND 1970S HIS IDEA OF HOW PERSONAL WORKSTATIONS MIGHT WORK PRESENTED IN A FAMOUS 1968 DEMONSTRATION THAT RELIED ON EXPENSIVE JURYRIGGED EQUIPMENT IS REGARDED AS A PRIME INSPIRATION FOR THE PC REVOLUTION LOTS OF INGREDIENTS IN THAT DEMO STILL HAVEN'T MADE IT INTO WIDESPREAD USE BUT THE MOUSE AN INVENTION THAT HE FIRST MODELED IN CRUDE WOODEN FORM IN 1964 HAS FOUND A PLACE OF HONOREVANGELIZED BY XEROX CORP IN THE 1970S AND APPLE COMPUTER INC IN THE 1980S UNTIL IT FINALLY CAUGHT ON REALIZING THAT INTERACTIVE COMPUTER SCREENS WOULD BE MORE IMPORTANT THAN THE TELETYPES AND PUNCH CARDS OF HIS DAY DR ENGELBART SOUGHT A POINTING DEVICE THAT WORKED EASILY WITH SOME KIND OF KEYBOARD AMONG THE CONTENDERS WERE LIGHT PENS TRACKBALLS EVEN SOME KNEE AND HEADCONTROLLED GIZMOS SRI HELD A SHOOTOUT AND THE MOUSE ROLLING ON TWO PERPENDICULAR WHEELS RATHER THAN TODAY'S WEIGHTED BALL WON BY A MILE ALTHOUGH HE PATENTED THE MOUSE DR ENGELBART NEVER SAW MUCH MONEY FROM HIS INVENTION A 10000 CHECK WAS HIS BIGGEST REWARD FOR THE FEAT HE SIGNED OVER THE PATENT RIGHTS TO SRI WHICH GAVE LICENSES OUT LIKE THEY WERE NOTHING HE SAYS STILL SOME ACKNOWLEDGE THEIR DEBT TO HIM LOGITECH INTERNATIONAL SA A BIG MAKER OF MICE PAYS HIM A RETAINER AND GIVES OFFICE SPACE TO HIS BOOTSTRAP INSTITUTE OF PALO ALTO CALIF DEVOTED TO USING TECHNOLOGY TO AUGMENT HUMAN INTELLIGENCE AND SPEED PROGRESS IRONICALLY DR ENGELBART NOW CARPS ABOUT SOCIETY'S OVERFIXATION ON EASYTOUSE COMPUTERS WHILE HE'S A BELIEVER IN THE POINTANDCLICK WORLD HE HELPED CREATE FOR BEGINNERS HE THINKS POWERFUL SHORTCUTS ARE CRUCIAL FOR ADVANCED USERS OTHERWISE WE'LL NEVER GET OFF THE TRICYCLE AND ONTO THE BICYCLE HE SAYS THE FAMILIAR SILVERY COMPACT DISK STARTED OFF AS A COMPLETELY DIFFERENT CREATURE THE ORIGINAL CONCEPT CALLED FOR A LARGER DISK ETCHED WITH TINY IMAGES THAT COULD BE TRANSMITTED ONTO A VIDEO SCREEN AS AN EDUCATIONAL TOOL THAT WAS IN 1968 AND PIETER KRAMER HAD NO CLUE THAT HIS WORK WOULD ULTIMATELY LEAD TO A BLOCKBUSTER PRODUCT THAT WOULD BE THE SALVATION OF THE MUSIC BUSINESS BUT BY THE MID1970S WHEN DR KRAMER AND A SMALL TEAM OF DUTCH SCIENTISTS AT PHILIPS ELECTRONICS NV HAD SOLVED MOST OF THE VIDEO DISK'S GLITCHES THEY HAD LAID THE GROUNDWORK FOR THE CD TO EMERGE IN THE 1980S DR KRAMER LED HIS FELLOW SCIENTISTS TO OVERCOME EVERY OBSTACLE THEY FACED FIRST THEY DECIDED THEIR IDEA COULD BE A REAL CONSUMERELECTRONICS PRODUCT NOT JUST AN EDUCATIONAL AID THEN THEY FOUND THAT A DISK FULL OF IMAGES COULDN'T BE MASSPRODUCED SO THEY STARTED ENCODING THE PICTURES WITH MICROSCOPIC PITS OR DIMPLES NO ORDINARY LIGHT PROVED BRIGHT ENOUGH TO READ THESE DIMPLES SO THEY TURNED TO LASERS EVEN THOUGH A COMMERCIAL LASER COST ABOUT 5000 THEN THAT LED TO SMALLER CHEAPER LASERS THE VERY SORT NOW FOUND IN 200 CD PLAYERS WE DIDN'T GET DISCOURAGED RECALLS THE 64YEAROLD DR KRAMER EVERY BARRIER WE FACED WAS POSSIBLE TO GET OVER IT JUST REQUIRED A LOT OF ENGINEERING SKILL ULTIMATELY DR KRAMER'S LASERVISION WAS A BUST BUT PHILIPS DECIDED TO SHRINK THE TECHNOLOGY FOR AUDIO WHEN THE COMPANY STARTED USING THE DIMPLES TO ENCODE ULTRACLEAR DIGITAL MUSIC EVERYTHING CLICKED AND THE CD WAS BORN IT'S EASY TO MAKE IT'S FAST TO MAKE IT'S CHEAP TO MAKE AND IT LASTS FOREVER BOASTS DR KRAMER OF THE OPTICALDISK MEDIUM HE CREATED IT'LL BE HARD TO BEAT FOR SOME TIME THE CD IS OFTEN ALSO CREDITED TO SONY CORP WHICH TEAMED WITH PHILIPS IN 1979 TO DEVELOP A WORLDWIDE CD STANDARD SONY'S TOP EXECUTIVES WERE AVID PROMOTERS OF THE CD AND ITS HUGE SUCCESS IS LARGELY DUE TO THE JAPANESE COMPANY'S ZEAL THAT WAS ALL IN THE MARKETING AND THEY'RE STRONG AT THAT SAYS DR KRAMER OF SONY'S CD CONTRIBUTION IT SEEMED WISE NOT TO QUARREL ABOUT WHO INVENTED WHAT AND JUST GO FOR THE STANDARD AND IN RETROSPECT SAYS DR KRAMER WHO LATER BECAME HEAD OF PHILIPS RESEARCH SONY'S CLOUT AND TECHNICAL EXPERTISE HELPED ENSURE THAT HIS INVENTION DIDN'T LANGUISH WE WERE CLEVER ENOUGH NOT TO BE TOO PROUD ABOUT IT HE SAYS BY TODAY'S STANDARDS A COMPUTER DISK DRIVE THAT'S THE SIZE OF A REFRIGERATOR BUT STORES ONLY FIVE MEGABYTES OF DATA ABOUT 3000 TYPED PAGES WOULD BE LAUGHABLE BUT IN 1955 WHEN INTERNATIONAL BUSINESS MACHINES CORP DEMONSTRATED THE FIRST COMMERCIAL DISK DRIVE IT WAS A STUNNING ACHIEVEMENT THAT SET THE STAGE FOR A HUGE INDUSTRY THE MAN BEHIND IBM'S NEW DEVICE WHICH BECAME PART OF A BIGSELLING COMPUTER CALLED RAMAC WAS REYNOLD JOHNSON A PROLIFIC INVENTOR AND FORMER HIGHSCHOOL TEACHER WHO JOINED BIG BLUE DURING THE DEPRESSION AT THE BEHEST OF COMPANY FOUNDER THOMAS WATSON SR A NATURAL TINKERER MR JOHNSON CAUGHT MR WATSON'S EYE WITH HIS IDEA FOR A MACHINE THAT SCORES MULTIPLECHOICE TESTS BY READING PENCIL MARKS ON AN ANSWER SHEET IBM INTRODUCED THE FIRST TEST SCORER IN 1937 TAPPED TO SET UP AN IBM LAB IN CALIFORNIA IN 1952 BY WHICH TIME HE ALREADY HAD ABOUT 50 PATENTS MR JOHNSON RECRUITED AN EAGER BUNCH OF ENGINEERS AND TACKLED A PET PROBLEM HOW TO STORE DATA SO RECORDS COULD BE RETRIEVED QUICKLY BUT IN RANDOM ORDER MR JOHNSON TESTED EVERY METHOD HE COULD THINK OF BUT SETTLED ON A SPINDLE OF SPINNING DISKS AN IDEA FIRST FLOATED BY A GOVERNMENT RESEARCHER HE AND HIS TEAM QUICKLY MADE MANY KEY ADVANCES SUCH AS GLIDING THE DISKS' PICKUP HEADS ON A CUSHION OF AIR TO MINIMIZE WEAR AND TEAR TO PROVIDE A UNIFORM MAGNETIC COATING THEY DRIPPED ORANGE IRONOXIDE PAINT FROM A DIXIE CUP ONTO EACH SPINNING DISK THE METHOD ENDURED FOR DECADES ALBEIT IN HIGHERTECH FORM WHEN RAMAC WAS INTRODUCED IN 1957 MR JOHNSON HAD ESTABLISHED A STORAGE STANDARD THAT EVENTUALLY WOULD SHRINK TO SHIRTPOCKET SIZE EVEN AS ITS CAPACITY EXPANDED 100FOLD EVERY ASPECT LENDS ITSELF TO CONSTANT IMPROVEMENT HE SAYS APPROVINGLY MR JOHNSON WENT TO HEAD A NEW ADVANCED DEVELOPMENT LAB FOR IBM COMING UP WITH INVENTIONS INCLUDING AN EARLY VIDEOCASSETTE RECORDER HE RECALLS THAT TOM WATSON JR WHO ALSO RAN IBM ONCE SAID TO HIM THAT'S A GREAT MACHINE BUT WE'RE NOT IN THAT BUSINESS HE SAID WE'D CALL SONY MR JOHNSON WHO REFUSES TO GIVE HIS AGE RETIRED IN 1971 WITH 81 PATENTS HE HAS REMAINED AN ACTIVE INVENTOR ADDING A DOZEN PATENTS TO HIS LEGACY WITH YET ANOTHER ONE IN THE WORKS INVENTION IS MY BAG HE SAYS I ENJOY IT LIQUID CRYSTALS ORGANIC SUBSTANCES THAT BEHAVE SOMEWHERE BETWEEN LIQUIDS AND CRYSTALS WEREN'T EXACTLY FASHIONABLE IN THE WORLD OF ELECTRONICS CIRCA 1964 BUT GEORGE HEILMEIER KEPT STUDYING THEM ANYWAY AND SPARKED A SEQUENCE OF EVENTS THAT LED DIRECTLY TO DIGITAL WATCHES AND COLOR PORTABLE COMPUTERS AND MAYBE SOON WALLHANGING TELEVISION SETS WHILE WORKING IN RCA CORP'S RESEARCH LABORATORY IN PRINCETON NJ DR HEILMEIER WAS NOODLING WITH VARIOUS ORGANIC SEMICONDUCTORS FAR FROM THE TRADITIONAL DOMAIN OF SILICON HE WONDERED WHETHER HE COULD USE THE MATERIALS TO CONTROL LASER BEAMS A HOT TOPIC AT THE TIME THE TRICK HE FIGURED WOULD BE GETTING LIQUID CRYSTALS TO CHANGE COLOR WHEN AN ELECTRIC CURRENT WAS APPLIED HE SOON SOLVED THAT PROBLEM IF HE DYED THE CRYSTALS THE DYE MOLECULES WOULD LINE UP IN THE PRESENCE OF ELECTRICITY BUT WHEN HE SAW THE COLORLESS LIQUID CRYSTALS TURN RED HE SUDDENLY REALIZED HE WAS ONTO SOMETHING FAR BIGGER WITHIN A FEW YEARS HIS GROUP HAD DEMONSTRATED LOTS OF USES FOR THE NEW LIQUID CRYSTAL DISPLAYS WATCHES TV SETS EVEN WINDOWS THAT TURNED OPAQUE IN A SPLIT SECOND RCA WAS THRILLED AND HELD A 1968 PRESS CONFERENCE THAT ATTRACTED WORLDWIDE ATTENTION UNLUCKILY FOR RCA THAT WAS ITS HIGH POINT IN LCDS THE PEOPLE WHO WERE ASKED TO COMMERCIALIZE THE TECHNOLOGY SAW IT AS A DISTRACTION TO THEIR MAIN ELECTRONICS FOCUS RECALLS THE 57YEAROLD DR HEILMEIER WHO IS NOW PRESIDENT OF BELL COMMUNICATIONS RESEARCH INC THE LIVINGSTON NJ RESEARCH ARM OF THE BABY BELLS THEY TRIED BUT THEY NEVER UNLOCKED THE KEY TO MAKING THIS A COMMERCIAL SUCCESS INSTEAD JAPANESE COMPANIES LED BY SHARP CORP LATCHED ONTO THE TECHNOLOGY AND HONED IT DR HEILMEIER IS SANGUINE ABOUT RCA'S FUMBLED CHANCE THOUGH HE THINKS IT HOLDS PLENTY OF LESSONS FOR US BUSINESS HIS EASE COMES PARTLY FROM ACHIEVEMENTS IN OTHER AREAS NOTABLY AS HEAD OF THE FEDERAL AGENCY THAT HELPED DEVELOP STEALTH AIRPLANES AND OTHER TECHNOLOGIES THAT HE CREDITS WITH WINNING THE COLD WAR AND SAVING LIVES IN THE PERSIAN GULF WAR I THINK YOU NEED TO GIVE THE CREDIT TO THE PEOPLE WHO PERSEVERED AND WORKED ON LCDS FOR 25 YEARS SAYS DR HEILMEIER I DON'T SPEND TOO MUCH TIME WRINGING MY HANDS ABOUT IT BUT I HAVE A LOT OF SATISFACTION KNOWING WE HAD THAT SAME VISION IN THE 1960S 9305240171 930524 TECHNOLOGY A SPECIAL REPORT AGAINST THE ODDS IT SEEMED LIKE A GOOD IDEA SOME OF THE MOST CREATIVE INVENTIONS AREN'T NECESSARILY THE MOST PRACTICAL BY MICHAEL W MILLER IN THE HISTORY OF AMERICAN GENIUS FOR EVERY THOMAS ALVA EDISON THERE HAVE BEEN A THOUSAND ALDEN MCMURTRYS MR MCMURTRY WAS THE CONNECTICUT TINKERER WHO IN 1911 RUSHED TO THE US PATENT OFFICE WITH HIS IMMORTAL DESIGN FOR THE BUBBLEHAT IT USED A HIDDEN GAS CANISTER TO SEND SOAP BUBBLES OUT OF A HAT PERFECT MR MCMURTRY THOUGHT FOR SHOWSTOPPING CHORUS NUMBERS THE PATENTOFFICE ARCHIVES FROM THE EARLY DAYS OF THE 20TH CENTURY ARE STUFFED WITH MCMURTRYESQUE FOLLIES HOUSEMAIDS' SHOES DESIGNED ESPECIALLY FOR PUMPING BELLOWS A ROCKING CHAIR THAT CHURNS BUTTER A MENACING HAT THAT FIRES BULLETS WHEN THE WEARER BLOWS INTO A TUBE NONE OF THE PATENTS THAT FOLLOW EVER FOUND AN ENDURING PLACE IN AMERICAN LIFE BUT BEFORE YOU WRITE THEM OFF AS LUDICROUSLY IMPRACTICAL TAKE A LOOK AROUND YOU THE TRENDIEST NEW SNEAKERS HAVE AIR PUMPS IN THEM SINGERS ON MTV SCARCELY OPEN THEIR MOUTHS WITHOUT SOME KIND OF ERUPTION IN THE BACKGROUND AND THERE WOULD SURELY BE A MARKET IF IT DOESN'T EXIST ALREADY FOR A 1990S VERSION OF THE FLORENCE GRAHAM DOUBLECHIN REDUCER THE PORTABLE BATH WAS A NIFTY WAY TO KEEP A TRAVELER CLEAN WHERE THE ORDINARY BATH CONVENIENCES ARE NOT AVAILABLE ACCORDING TO MR KING THE BATHER WOULD CLIMB INTO A WATERPROOF BAG AND PULL A DRAWSTRING TO TIGHTEN A WOOL COLLAR AROUND HIS NECK THEN AN ATTENDANT WOULD INJECT AIR STEAM OR OTHER AERIFORM FLUID INTO THE BAG MR KING SOBERLY ASSURED THE PATENT EXAMINERS HIS INVENTION WOULD OFFER PLEASURE AS WELL AS HYGIENE BY ALTERNATE CROUCHING AND RISING IN THE BAG OR BY ROLLING WITH THE SAME UPON A BED OR FLOOR ON THE PART OF THE BATHER THE LIQUID MAY BE MADE TO SURGE IN SIMULATION OF SEA WAVES AND THUS AFFORD GRATIFICATION TO SAID BATHER THE POINT OF THE JELALIAN SWIMMING DEVICE WAS TO SWIM IN A MOST SAFE SUCCESSFUL AND RAPID MANNER IN FACT THE GADGET WOULD SURELY HAVE TAKEN SO LONG TO STRAP ON THAT IT COULDN'T HAVE BEEN MUCH OF A TIMESAVER IT FEATURED AN AIR BAG ON EACH SIDE OF THE SWIMMER'S BODY A THIRD AIR BAG FOR THE SHOULDERS A CONVEX BOARD FOR PROPELLING PURPOSES ON EACH HAND AND TWO MORE BOARDS FOR THE LEGS MR CUNNINGHAM TOOK PAINS TO EXPLAIN THE UNIQUE VIRTUES OF HIS TRAP YOU COULD SET IT WITHOUT HURTING YOUR FINGERS RELEASE THE DEAD ANIMAL WITHOUT TOUCHING IT AND KEEP THE ANIMAL FROM ACTUALLY CONSUMING THE BAIT HE NEVER EXPLAINED JUST WHY HE DESIGNED THE TRAP IN THE OUTLINE OF A DOG OR OTHER ANIMAL WHOSE JAWS WOULD PROBABLY BE THE LAST PLACE IN THE WORLD ANY ANIMAL WOULD INNOCENTLY WANDER INTO MR CLARK'S PROBLEM HOW TO HARNESS ALL THAT ENERGY HE GENERATED BY ROCKING BACK AND FORTH IN HIS ROCKING CHAIR HIS SOLUTION CONNECT IT TO A BUTTER CHURN WITH A SHAFT A RATCHET WHEEL SOME RODS AND PAWLS AND A DOZEN OTHER PARTS THIS TERRIFYING CREATION WOULD LET YOU FIRE BULLETS FROM THE FRONT OF YOUR HAT BY BLOWING THROUGH A LITTLE TUBE IN YOUR MOUTH TO MR PRATT THIS ARRANGEMENT OFFERED SEVERAL OBVIOUS ADVANTAGES YOUR HANDS AND FEET WOULD BE FREE TO DEFEND YOURSELF IN OTHER MEANS ANOTHER PLUS IN HUNTING AT NIGHT IF AN ANIMAL MADE A SOUND IN UNDERBRUSH THE HEAD OF THE MARKSMAN WOULD BE INSTINCTIVELY TURNED IN THE DIRECTION OF THE SOUND AND THEN THE GUN WOULD BE FIRED WITHOUT THE USE OF THE EYES OF THE MARKSMAN CLEANING THE HOUSE IS NEVER FUN BUT IT WAS AN ABSOLUTE NIGHTMARE WITH TURNOFTHECENTURY VACUUM CLEANERS THE SUCTION CAME FROM AN ELABORATE BELLOWS OPERATED BY PEDAL OR HAND A PAIR OF HOUSEMAIDS HAD TO DRAG IT FROM ROOM TO ROOM PUMPING FURIOUSLY MR JACK INGENIOUSLY PROPOSED AFFIXING THE BELLOWS TO THE HOUSEMAID'S FEET THAT HE WROTE WOULD LET HER CLEAN THE HOUSE WITH A MINIMUM OF MUSCULAR FATIGUE THIS EARLY FLABBUSTER WAS AIMED AT THE CONDITION OFTEN REFERRED TO AS DOUBLE CHIN' MRS GRAHAM WAS LOOKING FOR AN ALTERNATIVE TO MANUAL CHIN MASSAGES WHICH SHE WROTE USUALLY REQUIRE THE EMPLOYMENT OF AN EXPERT ARE NOT ALWAYS EFFECTIVE AND OFTEN RESULT IN A FLABBY OR BAGGY CONDITION HER COUNTERPROPOSAL DUMP YOUR CHIN INTO A LITTLE BASIN AND BLAST IT WITH JETS OF HOT WATER MR MILLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9305240170 930524 JAPAN RETAILER YAOHAN SEES BIG BUCKS IN MERCHANTS' SLOWMOVING INVENTORY BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO YAOHAN INTERNATIONAL GROUP A BIG JAPANESE RETAIL CHAIN HAS AN IDEA TO HELP JAPANESE MERCHANTS REDUCE INVENTORY AND MAKE HEAPS OF MONEY FOR ITSELF IN THE PROCESS SHIP SLOWMOVING GOODS ON A FAST BOAT TO CHINA LAST WEEK THE COMPANY SAID IT'S ESTABLISHING A JOINT VENTURE CONCERN WITH THE JAPAN ENTREPRENEURS AND PRESIDENTS ASSOCIATION AN INDEPENDENT ORGANIZATION REPRESENTING 15000 SMALL AND MEDIUMSIZED JAPANESE COMPANIES THE NEW COMPANY WILL BUY UP LEFTOVER DESIGNERBRAND CLOTHES STEREOS AND SUNDRY GOODS SUCH AS SHAMPOO AT ABOUT 20 OF THEIR RETAIL PRICE AFTER THAT YAOHAN BASED IN HONG KONG PLANS TO SELL THE PRODUCTS MAINLY THROUGH ITS TWO STORES IN BEIJING AND SHANGHAI AT AS MUCH AS 80 OF THE RETAIL PRICE TWO CHINESEBACKED COMPANIES HAVE A 15 STAKE IN THE BIG RETAILER BY DOING SO YAOHAN IS SIMPLY FOLLOWING AN OLD JAPANESE PROVERB THERE'S LUCK IN THE REMAINDERS WE WANT TO SELL WHATEVER WE CAN SAYS A BUYING OFFICIAL FOR YAOHAN'S TOKYO OFFICE INVOLVED IN THE NEW VENTURE THE NEW COMPANY EXPECTS TO BUY UP 14 MILLION OF MERCHANDISE HE SAYS THE COMPANY ALSO PLANS TO SELL THE GOODS IN OTHER ASIAN COUNTRIES IN ADDITION TO CHINA THE OFFER COMES AS WELCOME NEWS TO MANY JAPANESE COMPANIES STRUGGLING TO GET RID OF INVENTORY PILING UP DURING JAPAN'S ENDURING ECONOMIC SLUMP WHY DON'T THE COMPANIES JUST DISCOUNT THEIR GOODS FOR THE HOME MARKET TRADITIONBOUND SMALLER FIRMS STILL FEAR COMPLAINTS FROM LONGTERM SUPPLIERS WHO WANT TO KEEP PRICES HIGH WHILE MAKERS OF DESIGNERBRAND CLOTHES WORRY THAT SELLING THEIR LEFTOVERS ON THE CHEAP IN JAPAN WOULD TAINT THEIR BRANDS' IMAGE SELLING THE GOODS OVERSEAS AVOIDS THE PROBLEM ON ONE DAY THE YAOHAN OFFICIAL SAYS ROUGHLY 50 COMPANIES CALLED TO OFFER TO SELL THEIR PRODUCTS HE SAYS YAOHAN IS CONFIDENT THE MERCHANDISE WILL GO OVER BIG IN CHINA WHERE THE ECONOMY IS BOOMING AND DEMAND FOR CONSUMER GOODS IS GROWING MOREOVER THE MADEINJAPAN TAG GIVES THE GOODS EXTRA CACHET 9305240169 930524 HUBCO INC REACHES AGREEMENT TO ACQUIRE STATEWIDE SAVINGS UNION CITY NJ HUBCO INC SAID IT REACHED A DEFINITIVE AGREEMENT TO BUY STATEWIDE SAVINGS BANK A JERSEY CITY THRIFT THAT WILL CONVERT TO A STOCKHOLDER INSTITUTION AS PART OF THE DEAL IN A STATEMENT HUBCO SAID THE AGREEMENT PROVIDES FOR IT TO SELL COMMON SHARES IN AN AMOUNT EQUAL TO THE VALUE OF STATEWIDE AS DETERMINED BY AN INDEPENDENT APPRAISER UPON COMPLETION OF THE SALE OF THE HUBCO SHARES STATEWIDE WILL CONVERT TO STOCK FORM IT CURRENTLY IS A MUTUAL INSTITUTION A HUBCO SPOKESMAN DIDN'T HAVE ANY FURTHER INFORMATION ABOUT THE APPRAISAL OR THE STOCK OFFERING HUBCO WILL THEN USE PROCEEDS FROM ITS STOCK OFFERING TO BUY ALL OF THE CAPITAL STOCK OF STATEWIDE THE HUBCO STOCK OFFERING WILL FIRST BE MADE TO CERTAIN ELIGIBLE DEPOSITORS OF STATEWIDE AT A DISCOUNT PRICE IF THEY DON'T SUBSCRIBE FOR ALL OF THE HUBCO SHARES THE REMAINING SHARES ARE EXPECTED TO BE SOLD AT MARKET PRICES TO EITHER HUBCO SHAREHOLDERS OR THE GENERAL PUBLIC IN AN UNDERWRITTEN OFFERING UNDER TERMS ELIGIBLE STATEWIDE DEPOSITORS WILL BE ABLE TO SUBSCRIBE FOR HUBCO SHARES AT THE LESSER OF 18 EACH OR 95 OF THE MARKET PRICE OF HUBCO STOCK WHEN THE ACQUISITION CLOSES HUBCO GAINED 75 CENTS FRIDAY TO 2050 IN NATIONAL OVERTHECOUNTER TRADING HUBCO SAID THIS PRICING STRUCTURE MAY BE AT VARIANCE WITH AN UNWRITTEN OFFICE OF THRIFT SUPERVISION POLICY AND IT IS UNABLE TO PREDICT WHEN AND IN WHAT FORM THE TRANSACTION WILL RECEIVE REGULATORY APPROVAL HOWEVER THE PARTIES HAVE AGREED TO WORK TOGETHER TO IMPLEMENT THE MERGER AND CONVERSION COMPLETION OF THE DEFINITIVE AGREEMENT IS SUBJECT TO A NUMBER OF CONDITIONS INCLUDING REGULATORY APPROVALS AND THE APPROVAL OF STATEWIDE'S VOTING MEMBERS STATEWIDE HAS 520 MILLION IN ASSETS AND 13 OFFICES HUBCO WITH 920 MILLION OF ASSETS IS THE PARENT OF HUDSON UNITED BANK 9305240168 930524 TECHNOLOGY A SPECIAL REPORT SURVEY WHO'S A GENIUS WE PUT THAT QUESTION AND OTHERS TO A FEW DOZEN HIGH TECH LUMINARIES HERE'S WHAT THEY SAID BY LAURENCE HOOPER WHAT DISTINGUISHES THE GENUS GENIUS WELL FOR ONE THING IT'S RARE EVEN IN HIGH TECHNOLOGY AN INDUSTRY THAT RELIES ON INNOVATIVE THINKING FEWER THAN 200 REAL GENIUSES ARE AT WORK TODAY ACCORDING TO MOST RESPONDENTS TO AN INFORMAL WALL STREET JOURNAL POLL IT'S ALSO VALUABLE TRUE GENIUSES ARE WORTH SALARIES OF UP TO 10 MILLION PLUS PARTOWNERSHIP OF THE COMPANIES WHERE THEY WORK SAYS OUR INTERNATIONAL SAMPLING OF HIGHTECH LUMINARIES WHY WITHOUT SUCH INDIVIDUALS TO LIFT OUR HORIZONS WE MIGHT STILL BE TOILING WITH TECHNOLOGY FROM THE 1950S OR 1960S OR PERHAPS AS ONE RESPONDENT SUGGESTS STRUGGLING TO EXIT THE STONE AGE OTHER TRAITS OF THIS ELITE BUNCH ACCORDING TO THE SURVEY OF NEARLY THREE DOZEN OPINION LEADERS THEY CAN BE ANY AGE BUT ARE MOST OFTEN FOUND IN THE 18 TO 35YEAROLD CATEGORY FEW ARE ONEHIT WONDERS MOST GREAT MINDS WILL HAVE MORE THAN ONE GREAT IDEA THEY ARE HARDWORKING RISK TAKERS ORIGINAL THINKERS WHO CAN SIMPLIFY AND COMMUNICATE THEIR INSIGHTS TO OTHERS THEY ARE STUBBORN THEY ARE LUCKY WORKADAY TECHNOLOGICAL ADVANCES AREN'T DRIVEN BY SUCH EXTRAORDINARY INDIVIDUALS FOR THE MOST PART PROGRESS IS A MATTER OF MANY SMART ENGINEERS DOING PAINSTAKING WORK AND MAKING INCREMENTAL IMPROVEMENTS AND AS THE HIGHTECH FIELD SPLINTERS INTO MYRIAD SPECIALTIES COLLABORATIVE TEAMS ARE ECLIPSING SOLO DOITALL EFFORTS STILL EVERY TEAM IS COMPOSED OF INDIVIDUALS AND THE BEST TEAMS THOSE THAT NURTURE BREAKTHROUGH IDEAS ARE COMPOSED OF BRIGHT PEOPLE WHO WORK AS KINDLING FOR THE CREATIVE SPARKS OF A GENIUS IN THE END A GREAT IDEA NEVER COMES FROM SOME AMORPHOUS GROUP SAYS JOEL BIRNBAUM VICE PRESIDENT OF RESEARCH AND DEVELOPMENT FOR HEWLETTPACKARD CO PALO ALTO CALIF IT COMES FROM A PERSON AS THE PACE OF TECHNOLOGY QUICKENS THE POLL'S RESPONDENTS SAY GENIUS IS GETTING MORE IMPORTANT THE ONLY WAY TO STAY AHEAD SOME SAY IS TO ENSURE THAT THE NEXT GREAT IDEA COMES FROM YOUR OWN COMPANY NOT A RIVAL HIGHTECH GENIUS COMES IN MANY FLAVORS AND IT DOESN'T DISCRIMINATE IN FAVOR OF NERDS DESPITE A TECHNICAL BENT AMONG MANY OF OUR RESPONDENTS THE POLL SHOWS ENORMOUS RESPECT FOR BUSINESS GENIUS MOST RESPONDENTS SAY MORE THAN 50 OF THE GENIUSES IN THEIR INDUSTRY ARE TECHNICALLY MINDED BUT THEY CHERISH THE REMAINDER WHO EXCEL IN MARKETING SALES AND BUSINESS STRATEGY IN FACT MANY RESPONDENTS WOULD HIRE A MARKETING GENIUS BEFORE THEY HIRE A TECHNICAL GENIUS OR WOULD COME UP WITH SOME WAY TO HIRE BOTH ANOTHER TESTAMENT TO BUSINESS GENIUS THE PERSON MOST WIDELY ACCLAIMED AS A HIGHTECH GENIUS IN THE SURVEY BY A HUGE MARGIN IS BILL GATES CHAIRMAN OF MICROSOFT CORP WHILE MR GATES IS TECHNOLOGICALLY ADEPT HE'S ADMIRED IN THE COMPUTER COMMUNITY MAINLY FOR HIS STRATEGIC SKILLS ND HIS CLEARMINDED VISION ALSO WIDELY ADMIRED ARE GENIUSES IN NONTECHIE FIELDS MORE THAN HALF OF OUR RESPONDENTS SAY ANOTHER AREA DRAWS MORE GENIUS THAN THEIR OWN INDUSTRY TOP HONORS GO TO BIOTECHNOLOGY BUT ARTS AND ENTERTAINMENT AREN'T FAR BEHIND AND EVEN POLITICS GETS A NOD FROM ONE VOTER FINALLY MOST RESPONDENTS BELIEVE THEIR OWN COMPANIES CONTAIN AT LEAST ONE GENIUS EXCEPT FOR AN INTREPID FEW HOWEVER MOST INSIST THEY ARE NOT THE GENIUS IN QUESTION MAYBE HEDGES PAUL GULICK CHIEF EXECUTIVE OFFICER OF MOTIF INC WHO COUNTS TWO TO THREE GENIUSES AT HIS WILSONVILLE ORE LIQUIDDISPLAYSCREEN DEVELOPER NOT FAIR COMPLAINS DANNY HILLIS CHIEF SCIENTIST OF THINKING MACHINES CORP A CAMBRIDGE MASS MAKER OF PARALLELPROCESSING SUPERCOMPUTERS HE COUNTS FIVE GENIUSES AT HIS COMPANY THAT'S WHAT PEOPLE SAY CONCEDES ANDY BECHTOLSHEIM VICE PRESIDENT OF SUN MICROSYSTEMS INC A MOUNTAIN VIEW CALIF MAKER OF WORKSTATION COMPUTERS AT LEAST HE HAS PLENTY OF COMPANY HE CITES 42 GENIUSES AT SUN YES SAYS STEVE WALLACH SENIOR VICE PRESIDENT OF CONVEX COMPUTER CORP RICHARDSON TEXAS HE COUNTS ONLY ONE GENIUS AT HIS COMPANY ALL OF WHICH BRINGS US TO ONE OF THE MORE USEFUL DESCRIPTIONS GATHERED IN THE POLL A GENIUS SAYS VERN RABURN CHIEF EXECUTIVE OFFICER OF SLATE CORP A SCOTTSDALE ARIZ SOFTWARE MAKER IS CORRECT THE WALL STREET JOURNAL ASKED NEARLY THREE DOZEN LEADERS IN THE HIGHTECHNOLOGY INDUSTRY TO GIVE US THEIR THOUGHTS ON GENIUSES IN THEIR BUSINESS WHO ARE THEY HOW MANY ARE THERE HOW OLD ARE THEY ARE YOU ONE AND SO ON HERE ARE THEIR RESPONSES TOP ANSWERS INSIGHT CREATIVITY VISION SOMEONE WHO THINKS IDEAS THAT ARE SO GOOD YOU CAN'T SEE WHERE THEY CAME FROM DANNY HILLIS CHIEF SCIENTIST THINKING MACHINES CORP ON A GOOD DAY THERE MAY BE THOUSANDS ON A BAD DAY THERE MAY NOT BE ANY LES ALBERTHAL CHAIRMAN ELECTRONIC DATA SYSTEMS CORP TUNNEL VISIONARIES DAVID KALISH FOUNDER AUTODESK INC NERDS STEVE WALLACH SENIOR VICE PRESIDENT CONVEX COMPUTER CORP NO SUCH PEOPLE NO COMPUTER INDUSTRY DANIEL BRICKLIN VICE PRESIDENT SLATE CORP AS OLD AS HE FEELS ROBERT GALVIN FORMER CHAIRMAN MOTOROLA INC PHYSICS MATH MUSIC ART LITERATURE BEN ROSEN CHAIRMAN COMPAQ COMPUTER CORP HE OR SHE IS SOMEONE NONE OF US HAVE EVER HEARD OF LES ALBERTHAL CHAIRMAN ELECTRONIC DATA SYSTEMS CORP IF I NAMED ANY IT WOULD BE TOO MUCH FOR INDIVIDUAL EGOS TO HANDLE SANJAY KUMAR SENIOR VICE PRESIDENT COMPUTER ASSOCIATES INTERNATIONAL INC LOTS ROBERT GALVIN FORMER CHAIRMAN MOTOROLA INC NOTHING THEY WOULDN'T FIT IN ROBERT CARR VICE PRESIDENT GO CORP ALL KNOWN GENIUSES ROBERT LUCKY VICE PRESIDENT BELL COMMUNICATIONS RESEARCH CORP TAKE 5TH AMENDMENT PLEASE ROBERT LUCKY VICE PRESIDENT BELL COMMUNICATIONS RESEARCH CORP ENOUGH SANJAY KUMAR SENIOR VICE PRESIDENT COMPUTER ASSOCIATES INTERNATIONAL INC IF I BELIEVE THE PRESS I'VE GOTTEN THEN I FIT IN THE CATEGORY BUT I DON'T REALLY FEEL IT DANIEL BRICKLIN VICE PRESIDENT SLATE CORP THAT'S WHAT PEOPLE SAY ANDY BECHTOLSHEIM VICE PRESIDENT SUN MICROSYSTEMS INC OCCASIONALLY ANDY HOPPER DIRECTOR OF CAMBRIDGE RESEARCH LABORATORY ING C OLIVETTI & CO I HOPE SO ROBERT GALVIN FORMER CHAIRMAN MOTOROLA INC 9305240167 930524 POTLATCH SAYS RESULTS FOR QUARTER TO TRAIL ANALYSTS' FORECASTS SAN FRANCISCO POTLATCH CORP CITING A LONGERTHANEXPECTED SHUTDOWN AT ONE OF ITS PLANTS SAID IT EXPECTS SECONDQUARTER EARNINGS TO BE CONSIDERABLY LOWER THAN THE 68 CENTS A SHARE FORECAST BY SOME ANALYSTS A POTLATCH SPOKESWOMAN SAID A LEWISTON IDAHO PLANT WAS SHUT DOWN FOR MAINTENANCE FOR A LONGER PERIOD THAN EXPECTED WHICH HURT PRODUCTION AND REVENUE THE COMPANY ALSO SAID ITS EARNINGS WERE HURT BY A DEPRESSED MARKET THE SPOKESWOMAN DECLINED TO SAY WHETHER POTLATCH EXPECTED TO REPORT A PROFIT OR A LOSS FOR THE QUARTER ANALYSTS HAD ESTIMATED THAT THE FORESTPRODUCTS COMPANY WOULD POST SECONDQUARTER NET INCOME OF ABOUT 68 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC IN THE 1992 SECOND QUARTER POTLATCH HAD NET INCOME OF 347 MILLION OR 119 A SHARE ON REVENUE OF 3284 MILLION INCLUDING A ONETIME GAIN OF 262 MILLION SEPARATELY POTLATCH SAID THAT IN ORDER TO MEET INCREASED DEMAND FOR ITS TISSUE PRODUCTS IT WILL SPEND 11 MILLION TO REBUILD ONE OF ITS TISSUEMAKING MACHINES THE PLANNED REBUILT MACHINE AND A NEW MACHINE BOTH LOCATED IN LEWISTON WILL HAVE THE CAPACITY TO PRODUCE 146000 TONS OF CONSUMER TISSUE PRODUCTS A YEAR 9305240165 930524 WHO'S NEWS WET SEAL INC WET SEAL INC IRVINE CALIF WALTER F LOEB WAS ELECTED A DIRECTOR OF THIS WOMEN'S APPAREL RETAILER SUCCEEDING H FREDERICK CHRISTIE 59 YEARS OLD WHO RESIGNED MR LOEB 68 IS PRESIDENT OF LOEB ASSOCIATES INC A RETAIL CONSULTANCY CONCERN IN NEW YORK 9305240164 930524 WHO'S NEWS CSX CORP CSX CORP RICHMOND VA JAMES P PETER 42 YEARS OLD WAS NAMED VICE PRESIDENT TAXES OF THIS FREIGHT TRANSPORTATION COMPANY HE SUCCEEDS L WAYNE FARRELL 51 WHO LEFT THE FIRM MR PETER JOINED CSX IN 1987 AS DIRECTOR FOR TAX PLANNING AND HAS BEEN MANAGING TAX DIRECTOR OF CSX'S JACKSONVILLE FLA OFFICE SINCE JANUARY 9305240163 930524 WHO'S NEWS MIDAMERICAN WASTE SYSTEMS INC MIDAMERICAN WASTE SYSTEMS INC COLUMBUS OHIO BEN H LOVE 62 YEARS OLD WAS ELECTED TO A NEW SEAT ON THE BOARD OF THIS NONHAZARDOUS SOLID WASTE MANAGEMENT BUSINESS THE SIZE OF THE BOARD INCREASES TO SIX MEMBERS MR LOVE IS A FORMER CHIEF EXECUTIVE OF THE BOY SCOUTS OF AMERICA 9305240162 930524 LOUISIANA AGENCY DEFERS REDEMPTION OF BONDS FOR REVIEW WASHINGTON CITING SECURITIES AND EXCHANGE COMMISSION INTEREST IN ITS CONTROVERSIAL MUNICIPAL BOND REDEMPTION PLANS A LOUISIANA AGENCY DEFERRED CALLING SOME 67 MILLION IN 1979 TAXEXEMPT BONDS THAT WERE SLATED FOR REDEMPTION LAST THURSDAY THE EAST BATON ROUGE MORTGAGE FINANCE AUTHORITY PUT OFF REDEEMING THE BONDS TO FOLLOW UP WITH REGULATORY AGENCIES A LAWYER FOR THE AGENCY SAID THE MUNICIPAL SECURITIES RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT HAD PROMISED TO SEEK AN SEC INQUIRY IF THE BONDS WERE REDEEMED THE BOARD QUESTIONED WHETHER REQUIRED DISCLOSURE HAD BEEN MADE TO THE MARKETPLACE THAT THE BONDS COULD BE CALLED AND WHETHER UNDERWRITERS FULFILLED THEIR OBLIGATIONS THE AUTHORITY SAID THE REDEMPTION WAS DEFERRED IN ORDER TO ASSIST AND COOPERATE WITH THE SEC IN ITS REVIEW OF CERTAIN MATTERS RELATING TO THE AUTHORITY'S SERIES 1979 BONDS THE AGENCY SAID IT IS CONFIDENT OF ITS LEGAL RIGHT TO REDEEM THE BONDS AND INTENDS TO PROCEED TO DO SO WHEN APPROPRIATE IN LIGHT OF THE DISCUSSIONS WITH THE SECURITIES AND EXCHANGE COMMISSION AND OTHER APPROPRIATE JUDICIARY OR OTHER REGULATORY REVIEW THE AUTHORITY SAID IT IS EAGER TO REDEEM THE BONDS IN ORDER TO OBTAIN FUNDS TO BE USED FOR THE BENEFIT OF LOWINCOME AND MODERATEINCOME HOUSING THE LOUISIANA AUTHORITY SAID ITS REPRESENTATIVES HELD AN INFORMATIONAL MEETING WITH SEC OFFICIALS EARLIER IN MAY THE FACT THAT THE REDEMPTION WAS DEFERRED DESPITE THAT MEETING WITH THE AUTHORITY NOW CITING A DESIRE TO HELP THE SEC IN ITS REVIEW OF THE MATTER SUGGESTS THAT THE AUTHORITY'S PROFESSED BELIEF THAT ADEQUATE DISCLOSURE WAS MADE ISN'T NECESSARILY SHARED BY THE SEC 9305240161 930524 TECHNOLOGY & ENVIRONMENT MICROSOFT EXHIBITS WINDOWS NT TODAY TARGETS HIGHEND USERS OF UNIX SYSTEMS BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP LAYING THE GROUNDWORK FOR AN INVASION OF HIGHEND COMPUTING WILL UNVEIL ITS LONGAWAITED WINDOWS NT OPERATING SOFTWARE IN ATLANTA TODAY COPIES OF NT WON'T BE AVAILABLE UNTIL THE END OF JULY BUT THE PROGRAM WHICH CONTROLS THE BASIC OPERATIONS OF PERSONAL COMPUTERS AND COMPUTER NETWORKS PUTS MICROSOFT IN POSITION TO MENACE SOME OF THE LEADING SUPPLIERS OF HIGHEND COMPUTERS AND SOFTWARE INDUSTRY OBSERVERS EXPECT MICROSOFT WILL MAKE HUGE INROADS WITH NT OVER THE NEXT DECADE BUT THAT THE PROGRAM WILL CATCH ON ONLY SLOWLY BECAUSE IT REQUIRES DELUXE PCS AND MUCH MORE SOPHISTICATED TRAINING AND SUPPORT THAN MICROSOFT'S POPULAR DOS AND WINDOWS PROGRAMS WILLIAM GATES MICROSOFT'S CHAIRMAN SAID HE EXPECTS ONE MILLION COPIES OF NT TO BE SOLD OVER THE NEXT YEAR WHILE THIS IS SMALL COMPARED WITH DOS WITH SALES AT LEAST 20 TIMES THAT OR WINDOWS WHICH SELLS ROUGHLY FOUR OR FIVE TIMES THAT AMOUNT IT'S A BIG NUMBER IF YOU COMPARE NT TO ANY HIGHEND OPERATING SYSTEM EVER DONE MR GATES SAID NT IS TARGETED AT THE COMPUTING ELITE WHO CURRENTLY RELY ON VARIANTS OF THE UNIX OPERATING SOFTWARE OR PROPRIETARY SYSTEMS FROM COMPANIES SUCH AS INTERNATIONAL BUSINESS MACHINES CORP THESE SYSTEMS ARE AIMED AT ORGANIZATIONS TRYING TO RUN THEIR BUSINESSES WITH NETWORKS OF PCS AND SELL IN THE HUNDREDS OF THOUSANDS A YEAR MOST THREATENED BY NT IS UNIX A CATCHALL TERM FOR MANY OPERATING SYSTEMS THAT SHARE SOME FEATURES AND A COMMON PARENTAGE THIS IS THE DEATH KNELL FOR THE UNIX MARKET SAID ARTHUR KREITMAN PRESIDENT OF CONGRUENT CORP A NEW YORK CITY SOFTWARE CONCERN THAT IS STRONGLY IN THE NT CAMP PURVEYORS OF UNIX OF COURSE ARE FIGHTING BACK INDEED THE SPECTER OF NT SEEMS TO HAVE GALVANIZED MICROSOFT'S OPPONENTS IN RECENT MONTHS NOVELL INC MICROSOFT'S CHIEF SOFTWARE RIVAL AND OWNER OF THE LEADING UNIX DEVELOPMENT LABORATORY HAS TAKEN A NUMBER OF STEPS TOWARD AN EVENTUAL GOAL OF UNIFYING UNIX BESIDES STANDARDIZING NOVELL ALSO PLANS TO MAKE IT POSSIBLE FOR ITS UNIX PRODUCT TO RUN WINDOWS APPLICATIONS A FEATURE THAT IS ONE OF THE MAIN SELLING POINTS OF NT WE THINK WE'VE GOT AN ANSWER TO NT SAID ROEL PIEPER NOVELL'S TOP UNIX EXECUTIVE BESIDES RUNNING INTO OPPOSITION MICROSOFT ALSO COULD STUB ITS TOE WHEN IT COMES TIME TO SELL NT IT REQUIRES A LOT OF SERVICE AND MICROSOFT DOES NOT TEND TO THINK OF ITSELF AS A SERVICE ORGANIZATION SAID STEWART ALSOP EDITOR OF THE TRADE WEEKLY INFOWORLD SOME CUSTOMERS MEANWHILE SAY NT IS TOO UNTESTED TO BE PUT IN CHARGE OF LARGE COMPUTER NETWORKS THAT RUN SYSTEMS CONSIDERED TO BE THE LIFEBLOOD OF A BUSINESS WE'D RATHER STICK WITH MORE FAMILIAR SOFTWARE SAID CARY SERIF WHOSE HUNTINGTON BANK IN COLUMBUS OHIO RELIES ON IBM'S OS/2 MR GATES HOWEVER INSISTS THAT NT WILL HAVE BEEN THOROUGHLY TESTED BEFORE ITS RELEASE THIS SUMMER PEOPLE WHO HAVE SAMPLED TEST OR BETA VERSIONS OF NT AGREE THAT IT COMPARES VERY FAVORABLY WITH OTHER FIRST RELEASES OF SOFTWARE CUSTOMERS WHO ALREADY OWN A COPY OF WINDOWS CAN BUY COPIES OF NT FOR A LIST PRICE OF 295 THE STANDARD PRICE IS 495 AN ADVANCED SERVER EDITION WILL SELL FOR 1495 FOR THE FIRST SIX MONTHS AND THEN THE PRICE IS EXPECTED TO DOUBLE THIS EDITION IS AIMED AT SERVER COMPUTERS WHICH MANAGE THE FLOW OF WORK BETWEEN INDIVIDUAL PCS 9305240160 930524 LETTERS TO THE EDITOR LAZARD FRERES DISPUTES ARTICLE WE ARE DISMAYED BY THE ARTICLE THAT APPEARED ON PAGE ONE FRIDAY ABOUT THE WORK OF A PARTNER IN OUR MUNICIPAL FINANCE DEPARTMENT AND WE TAKE ISSUE WITH ITS TENOR AS WELL AS WITH ITS SPECIFICS OUR REVIEW OF THE MATTERS DISCUSSED IN YOUR ARTICLE HAS NOT BROUGHT TO OUR ATTENTION ANY EVIDENCE OF ILLEGALITY OUR CODE OF CONDUCT SUBSCRIBED TO BY EVERYONE FROM OUR MORE SENIOR PARTNERS TO OUR MOST JUNIOR EMPLOYEES STATES CLEARLY OUR POLICY THAT ALL BUSINESS AFFAIRS BE CONDUCTED ON THE HIGHEST ETHICAL LEVEL NOTHING FALLING SHORT OF THIS IS TOLERATED IN CONNECTION WITH THE PREPARATION OF THE ARTICLE WE REQUESTED AND WERE AFFORDED THE OPPORTUNITY TO MEET WITH YOUR REPORTERS TO ANSWER THEIR QUESTIONS AND TO CONVEY TO THEM A SENSE OF OUR DEDICATION TO EXCELLENCE IN OUR WORK AND TO ETHICAL CONDUCT BY OUR PARTNERS AND EMPLOYEES IT IS DISTRESSING TO US THAT CERTAIN FACTS THAT WERE PROVIDED IN PARTICULAR AS TO THE MERIT OF OUR WORK ON SEVERAL ISSUES DID NOT APPEAR IN THE ARTICLE THE DAYTODAY EFFORTS OF INDIVIDUALS IN OUR FIRM TO FORMULATE INNOVATIVE RESPONSES TO THE EXTREMELY COMPLEX FINANCIAL ISSUES THAT CONFRONT OUR STATE AND LOCAL AUTHORITIES WERE DISREGARDED IN EXCHANGE FOR THE DRAMA OF UNPROVEN INSINUATIONS OF IMPROPER INFLUENCE 9305240159 930524 WHO'S NEWS ENGINEERED SUPPORT SYSTEMS INC ENGINEERED SUPPORT SYSTEMS INC ST LOUIS JOHN J QUINN 55 YEARS OLD PRESIDENT OF THE ST LOUIS BLUES HOCKEY CLUB WAS NAMED A DIRECTOR OF THIS MAKER OF MILITARY GROUNDSUPPORT EQUIPMENT INCREASING THE BOARD'S SIZE TO NINE 9305240158 930524 WHO'S NEWS VIRATEK INC VIRATEK INC COSTA MESA CALIF NILS O JOHANNESSON HAS BEEN ELECTED PRESIDENT OF THIS PHARMACEUTICALDEVELOPMENT SUBSIDIARY OF ICN PHARMACEUTICALS INC DR JOHANNESSON 48 YEARS OLD ALSO SERVES AS VICE PRESIDENT OF RESEARCH AND DEVELOPMENT AND NEW PRODUCTS FOR SPI PHARMACEUTICALS INC AN ICN AFFILIATE AT VIRATEK HE SUCCEEDS ROBERTS A SMITH 64 WHO IS RETIRING BUT REMAINS ON THE VIRATEK BOARD VIRATEK DEVELOPS PHARMACEUTICAL COMPOUNDS AND BIOMEDICAL PRODUCTS 9305240157 930524 WHO'S NEWS INTEGRATED HEALTH SERVICES INC INTEGRATED HEALTH SERVICES INC HUNT VALLEY PA THIS HEALTHCARE PROVIDER FOR THE ELDERLY SAID TIM NICHOLSON EXECUTIVE VICE PRESIDENT AND COFOUNDER WILL LEAVE THE COMPANY TO FORM A NEW LONGTERM CARE COMPANY IN THE UNITED KINGDOM THE LONDON COMPANY WILL PROVIDE SPECIALTY MEDICAL SERVICES TO THE ELDERLY INTEGRATED HEALTH SERVICES SAID IT WILL HAVE A MINORITY INTEREST IN THE VENTURE MR NICHOLSON WILL REMAIN ON INTEGRATED HEALTH SERVICES' BOARD AND SERVE AS A CONSULTANT TO THE COMPANY INTEGRATED HEALTH SERVICES OPERATES 65 FACILITIES IN THE US WITH MORE THAN 8500 BEDS 9305240156 930524 TECHNOLOGY A SPECIAL REPORT FINDING AND FEEDING PUBLIC PUSH BY RICHARD L HUDSON LONDON LATER THIS YEAR APPLE COMPUTER INC WILL START SELLING A SMALL TESTAMENT TO THE POWER OF GOVERNMENTS TO PROMOTE CREATIVITY AT THE HEART OF APPLE'S LATEST COMPUTER THE NEWTON PORTABLE SCHEDULED TO APPEAR WORLDWIDE THIS SUMMER IS AN UNUSUAL MICROPROCESSOR CHIP BANKROLLED BY BRUSSELS BUREAUCRATS IT WAS CONCEIVED IN THE LATE 1980S BY SOME PLUCKY BRITISH ENGINEERS WITH LITTLE CASH BUT BIG PLANS SO THEY GOT SOME SEED MONEY AND HELP FROM ESPRIT THE EUROPEAN COMMUNITY'S FLAGSHIP RESEARCH PROGRAM IN TIME THEIR WORK CAUGHT THE EYE OF APPLE WHICH IS NOW AN INVESTOR IN THEIR CAMBRIDGE ENGLAND COMPANY CALLED ADVANCED RISC MACHINES LTD KNOWN IN THE INDUSTRY AS ARM AND THE EC GETS SOME CREDIT SAYS HERMANN HAUSER AN ARM FOUNDER I THINK ESPRIT IS ONE OF THE BRIGHTER IDEAS THAT BRUSSELS HAS HAD IF SO THERE'S PLENTY MORE WHERE THAT CAME FROM AS THE ARM EPISODE SUGGESTS GOVERNMENT PROGRAMS CAN INDEED NURTURE TALENT AND WINNERS IN TECHNOLOGY AND THAT REALIZATION IS PROMPTING A GLOBAL BOOM IN NEW PROGRAMS AND POLICIES THE MOST DRAMATIC ACTION IS IN WASHINGTON WHERE THE CLINTON ADMINISTRATION HAS PROPOSED A PANOPLY OF NEW PROGRAMS TO MAKE US HIGHTECH INDUSTRIES MORE COMPETITIVE BUT SIMULTANEOUSLY IN BRUSSELS POLITICIANS ARE IN THE MIDST OF FORMULATING A NEW FIVEYEAR PLAN FOR EC TECHNOLOGY PROGRAMS THAT COULD COST AS MUCH AS 175 BILLION AND IN TOKYO AN UNPRECEDENTED SLUMP IN JAPAN'S ONCEBOOMING ELECTRONICS INDUSTRY IS PROMPTING SOME SOULSEARCHING AMONG THE TECHNOCRATS WHO GUIDED THE COUNTRY'S METEORIC TECHNOLOGICAL RISE IN THE 1970S AND 1980S WHAT'S MORE AFTER DECADES OF DIVERGENT VIEWS SOME COMMON NOTIONS OF WHAT WORKS AND WHAT DOESN'T IN TECHNOLOGY POLICY IS EMERGING IN ALL THREE REGIONS OF THE DEVELOPED WORLD THE BASIC IDEAS SUCH AS USING GOVERNMENT MONEY TO INDUCE RESEARCHERS TO JOIN RATHER THAN BATTLE COMPETITORS WERE EMPLOYED MOST EFFECTIVELY IN JAPAN IN THE 1970S AND THEN SPREAD TO EUROPE IN THE 1980S IN THE US AFTER SOME TENTATIVE MOVES DURING THE BUSH YEARS THE CLINTON ADMINISTRATION IS NOW EMBRACING THEM WHATEVER CYCLICAL PROBLEMS JAPAN IS NOW EXPERIENCING THEY HAVEN'T TARNISHED THE COUNTRY'S ACHIEVEMENTS IN THE EYES OF WESTERN TECHNOCRATS AND POLITICIANS WHAT'S HAPPENING IS THE US IS STARTING TO EXPERIMENT WITH ITS OWN ADAPTATION OF POLICY TOOLS THAT HAVE BEEN USED IN JAPAN AND EUROPE FOR A DOZEN YEARS SAYS LEWIS E BRANSCOMB A PROFESSOR AT HARVARD UNIVERSITY'S KENNEDY SCHOOL OF GOVERNMENT AFTER 20 YEARS OF CASTIGATING OUR FRIENDS IN EUROPE AND JAPAN FOR THEIR INDUSTRIAL POLICIES THE US IS NOW SCRAMBLING TO LEARN HOW TO DO IT THE RESULT IS THE POLITICAL EQUIVALENT OF ELECTRONIC AMPLIFIER FEEDBACK WITH POLICY MAKERS IN EUROPE THE US AND JAPAN ALL WATCHING EACH OTHERS' EXPERIMENTS AND ECHOING EACH OTHERS' VIEWS THE EFFECT OF JAPANESE POLICIES THAT HAD DELIBERATELY SOUGHT TO PROMOTE GENERIC TECHNOLOGIES WERE WATCHED HERE IN EUROPE AND THE US SAYS MARAGARET SHARPE A RESEARCHER AT ONE OF EUROPE'S MAIN THINK TANKS THE SCIENCE POLICY RESEARCH UNIT OF BRITAIN'S UNIVERSITY OF SUSSEX NOW SHE ADDS WHETHER IN TOKYO WASHINGTON OR BRUSSELS EVERY TIME ANYONE PRODUCES A LIST OF POLICIES YOU END UP WITH THE SAME THINGS ON IT THAT LIST TYPICALLY INCLUDES COLLABORATION WHEN IT COMES TO PROMOTING IDEAS MANY HEADS AND POCKET BOOKS ARE BETTER THAN ONE GOES THE THEORY IN THE PAST SOME GOVERNMENTS FOCUSED THEIR TECHNOLOGY SPENDING ON A FEW NATIONAL CHAMPIONS SUCH AS FRANCE'S AEROSPATIALE SA IN AEROSPACE AND CIE DES MACHINES BULL IN COMPUTERS THOUGH SUCH SUBSIDIES CONTINUE THE FASHION NOW IS TO USE GOVERNMENT GRANTS AS DOWRY MONEY ENCOURAGING COMPANIES TO JOIN FORCES AND CONDUCT RESEARCH JOINTLY BESIDES PROVIDING MORE BANG FOR THE BUCK THE APPROACH APPEALS TO A POLITICIAN'S BASIC INSTINCT TO SPREAD RICHES AND GRATITUDE WIDELY GENERIC RESEARCH RATHER THAN TARGET NARROW FIELDS GOVERNMENTS ARE SPREADING MORE OF THEIR RESEARCH MONEY ACROSS RELATIVELY BROAD SWATHS OF TECHNOLOGY THAT WOULD BENEFIT MANY INDUSTRIES EXAMPLES INCLUDE EC FUNDING OF LASER RESEARCH THAT COULD END UP IN COMPUTERS TELEPHONE EXCHANGES OR MACHINE TOOLS OR US COMMERCE DEPARTMENT SUPPORT FOR RESEARCH INTO FLATPANEL DISPLAYS FOR TELEVISION SETS COMPUTER SCREENS AND OTHER PRODUCTS DIFFUSION NO LONGER CONTENT TO LET LAB RESULTS MOLDER UNREAD IN SCIENTIFIC JOURNALS GOVERNMENTS ARE PUSHING WAYS TO ENCOURAGE THEIR COMMERCIALIZATION THE JAPANESE PIONEERED THIS BY AMONG OTHER THINGS SCATTERING THE COUNTRY WITH SOME 200 LABS FUNDED JOINTLY BY GOVERNMENT AND INDUSTRY DEDICATED TO SOLVING SPECIFIC INDUSTRIAL PROBLEMS IN THE US BY CONTRAST THE STANDARD MODEL FOR TECHNOLOGY TRANSFER SINCE WORLD WAR II HAS BEEN THE MILITARY SPINOFF LETTING DEFENSE CONTRACTORS WORK OUT FOR THEMSELVES WHETHER THERE'S ANY CIVILIAN APPLICATION FOR THEIR PENTAGON RESEARCH THOUGH THE SYSTEM WORKED IN THE 1950S AND 1960S IN COMPUTERS AND AEROSPACE WASHINGTON'S NEW EMPHASIS UNDER PRESIDENT CLINTON IS ON PROGRAMS THAT DON'T LEAVE COMMERCIALIZATION OF LAB RESULTS TO CHANCE FOR INSTANCE ONE PROPOSAL UNDER CONSIDERATION WOULD REQUIRE THAT AT LEAST 10 OF US WEAPONS LABS' BUDGETS BE SPENT ON ADAPTING MILITARY RESEARCH TO CIVILIAN PRODUCTS INFRASTRUCTURE THE BUZZWORD TO END ALL BUZZWORDS IT SUGGESTS GOVERNMENTS SHOULD SPEND MORE MONEY ON THE NUTSANDBOLTS OF SCIENCE AND TECHNOLOGYLAB EQUIPMENT AND TECHNICAL EDUCATION FOR INSTANCE THIS IS THE MOSTPUBLICIZED ASPECT OF THE CLINTON ADMINISTRATION'S TECHNOLOGY PROGRAM AND INCLUDES AN INFORMATION SUPERHIGHWAY INITIATIVE TO FUND SCHOOLS LIBRARIES AND OTHERS WANTING TO DEVELOP EDUCATIONAL USES FOR HIGHSPEED COMPUTER NETWORKS IN BRUSSELS A SIMILAR PROJECT IS UNDER DISCUSSION ENVISAGING A 42 BILLION BUDGET TO FUND UNIVERSITY AND INDUSTRIAL RESEARCH INTO NOVEL USES OF HIGHPERFORMANCE COMPUTERS AND NETWORKS ALAS FOR TAXPAYERS FINANCING THESE PROGRAMS NONE OF THESE LISTS GUARANTEE TECHNOLOGICAL SUCCESS WHAT WORKED IN JAPAN IN THE 1970S WON'T NECESSARILY TRANSLATE WELL INTO AMERICAN SOCIETY TWO DECADES LATER AND EVEN IN THE SAME COUNTRY LIGHTNING HAS SELDOM STRUCK TWICE THOUGH JAPAN'S TECHNOCRATS SUCCEEDED SPECTACULARLY WITH SEMICONDUCTORS IN THE 1970S THEIR HUGE FIFTH GENERATION COMPUTER PROGRAM TO LEAPFROG US COMPUTER TECHNOLOGY IN THE 1980S FIZZLED OUT INCONCLUSIVELY AND THE EC DESPITE A DECADE OF EFFORT IN ELECTRONICS RESEARCH HAS SEEN ITS TECHNOLOGY TRADE DEFICIT SWELL AND ITS NATIVE COMPUTER INDUSTRY BECOME DEPENDENT FOR TECHNOLOGY ON STRONGER US AND JAPANESE FIRMS THE EC'S EXPERIENCE WITH ESPRIT SHOWS WHAT TECHNOCRATS CAN AND CAN'T ACHIEVE THE PROGRAM BEGAN IN 1983 AS PART OF A DESPERATE EC DRIVE TO BRIDGE WHAT WAS THEN CALLED EUROPE'S TECHNOLOGY GAP BEHIND THE US AND JAPAN BORROWING IDEAS FREELY FROM TOKYO THE PROGRAM OFFERS 50 SUBSIDIES FOR BASIC RESEARCH IN MICROELECTRONICS COMPUTER SCIENCE AND RELATED FIELDS MOST IMPORTANT THE RESEARCH IS COLLABORATIVE TO QUALIFY FOR ESPRIT MONEY COMPANIES OR RESEARCH INSTITUTIONS IN AT LEAST TWO EC COUNTRIES FORM CONSORTIA AND PROPOSE JOINT RESEARCH TOPICS TO THE BRUSSELS ADMINISTRATORS SINCE 1984 ABOUT 56 BILLION HAS BEEN SLATED FOR ESPRIT PROJECTS HALF FINANCED BY THE EC COMMISSION AND HALF BY INDUSTRY PARTNERS NOT CASH WERE ESPRIT'S MAIN GIFTS TO THE BRITISH ARM CHIP NOW USED BY APPLE A KEY FEATURE OF THE CHIP IS ITS ABILITY TO WORK FAST BUT CONSUME LITTLE ELECTRICITY THAT'S WHAT MADE IT IDEAL FOR A HANDHELD BATTERYOPERATED COMPUTER LIKE NEWTON YET MUCH OF THE POWERSAVING TECHNOLOGY CAME NOT FROM ARM BUT FROM ONE OF ITS ESPRIT PARTNERS GERMAN ELECTRONICS GIANT SIEMENS AG SIEMENS HAD IDEAS ON LOWPOWER TECHNIQUES THAT WE COULDN'T HAVE DREAMED OF IN 100 YEARS RECALLS MR HAUSER THE ARM COFOUNDER IN EC SURVEYS OTHER ESPRIT PARTICIPANTS GRUMBLE ABOUT THE PROGRAM'S BUREAUCRACY BUT ALSO PRAISE ITS COLLABORATIVE BENEFITS ESPRIT FORCED PEOPLE TO GET TOGETHER AND TALK AND OUT OF IT HAS COME LOT OF USEFUL COLLABORATION SAYS THE UNIVERSITY OF SUSSEX'S MS SHARPE IT HAD A GOOD EFFECT ON RAISING SIGHTS FROM NATIONAL BOUNDARIES TO A WORLD VIEW THERE HAD BEEN TOO MUCH NATIONAL NAVELGAZING AND TOO MANY NATIONAL CHAMPIONS THAT EXPECTED TO BE MOLLYCODDLED BY THEIR GOVERNMENTS BUT BEYOND SUCH INTANGIBLE BENEFITS SHE AND OTHER POLITICAL SCIENTISTS SAY IT'S HARD TO MEASURE EXACTLY WHAT GOOD ESPRIT DID EC COMMISSION SURVEYS SUGGEST IT GAVE TAXPAYERS A BIG RETURN IN ONE STUDY EUROPE'S BIGGEST ELECTRONICS COMPANIES REPORTED THAT ABOUT 20 OF THEIR PRODUCTS IN RECENT YEARS CONTAINED TECHNOLOGY ARISING FROM THEIR ESPRIT RESEARCH BY COMPARISON GRANTS FROM ESPRIT AMOUNTED TO JUST 2 OF THEIR OVERALL RESEARCHANDDEVELOPMENT BUDGETS BUT NOBODY HAS YET ATTEMPTED A RIGOROUS COSTBENEFIT ANALYSIS OF THE PROGRAM AND THE FACT REMAINS THAT DESPITE ESPRIT EUROPE'S ELECTRONICS INDUSTRY HAS BEEN LOSING MONEY FASTER AND LONGER THAN ITS RECESSIONBATTERED US AND JAPANESE COUNTERPARTS ESPRIT SUPPORTERS SAY THINGS WOULD HAVE BEEN EVEN WORSE WITHOUT THE PROGRAM ESPRIT IS A NECESSARY BUT NOT SUFFICIENT CONDITION FOR THE EUROPEAN INDUSTRY TO BE COMPETITIVE SAYS MR HAUSER IT IS GOVERNMENT'S JOB TO SUPPORT THE BRIGHT PEOPLE TO FEED THE GOLDEN GEESE THAT LAY THE EGGS IT'S THE JOB OF INDUSTRY TO SPOT THE GOLDEN EGGS AND THE PROBLEM IS THAT IN EUROPE THEY DON'T DO THAT MR HUDSON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LONDON BUREAU 9305240155 930524 INFORMATION AGE CENSORSHIP FIGHTS HEAT UP ON ACADEMIC NETWORKS BY WILLIAM BULKELEY HAS POLITICAL CORRECTNESS GONE ONLINE IN ACADEMIA BATTLES ARE RAGING OVER FREEDOM OF SPEECH IN UNIVERSITYORIENTED COMPUTER BULLETIN BOARDS ONE OF THE FEW PLACES IN ACADEMIA THAT HASN'T BEEN RACKED FOR YEARS BY THIS KIND OF STRIFE A MILDMANNERED MICROBIOLOGIST FROM ROOTSTOWN OHIO HAS STIRRED UP A STORM AMONG ONLINE COMPUTER USERS BY DEVISING A COMPUTER PROGRAM THAT AUTOMATICALLY WIPES OUT ANONYMOUS MESSAGES ON INTERNET THE NATION'S LARGEST ONLINE NETWORK WHICH IS WIDELY USED BY SCHOLARS HE WAS OFFENDED BY AN ANONYMOUS USER WHO POSTED A JOKE ABOUT THE LAST WORDS OF THE CHALLENGER SPACE SHUTTLE CREW IN A SCIENTIFIC DISCUSSION GROUP IN OTHER CASES CANADIAN COLLEGES HAVE BLOCKED ELECTRONIC DISCUSSIONS OF SEX A CALIFORNIA COMMUNITY COLLEGE RECENTLY SUSPENDED A JOURNALISM PROFESSOR FOR RUNNING A COMPUTER BULLETIN BOARD ON WHICH MALE STUDENTS WROTE MESSAGES THAT ALLEGEDLY HARRASSED A FEMALE MANY ONLINE VETERANS COMPLAIN THAT SUCH ACTIONS THREATEN FREEDOM OF EXPRESSION THIS SHOWS HOW THE CENSORS ARE ALL AMONG US SAYS LARRY DETWEILER A RECENT GRADUATE OF COLORADO STATE UNIVERSITY WHO STUDIES FREE SPEECH AND HANGS AROUND THE INTERNET WHICH IS OFTEN SEEN AS A PROTOTYPE FOR THE INFORMATION HIGHWAY THAT THE CLINTON CAMPAIGN DESCRIBED IN LAST YEAR'S PRESIDENTIAL ELECTION SUCH ISSUES ARE LIKELY TO INCREASE AS THE HIGHWAY CONNECTS MORE AND MORE COMPUTERS ESPECIALLY IF THE FEDERAL GOVERNMENT FUNDS IT IN FACT CONGRESS HAS ORDERED A STUDY OF WHETHER ELECTRONIC BULLETIN BOARDS ONLINE SERVICES AND PUBLICACCESS CABLE TELEVISION ARE BEING USED TO ENCOURAGE CRIMES OF HATE FOR SOME TIME NOW COMMERCIAL ONLINE SERVICES SUCH AS PRODIGY HAVE USED COMPUTER PROGRAMS THAT AUTOMATICALLY DELETE MESSAGES THAT CONTAIN CERTAIN WORDS GROUP MODERATORS WHO OFTEN GUIDE DISCUSSIONS ON SERVICES SUCH AS H&R BLOCK INC'S COMPUSERVE ALSO HAVE THE POWER TO REMOVE HATEFUL OR IRRELEVANT MESSAGES AS SOON AS THEY SEE THEM BUT MANY VOLUNTEERRUN BULLETIN BOARDS DECLINE TO CONTROL WHAT PEOPLE WRITE LEGALLY THEY AREN'T REQUIRED TO PLAY THE CENSOR BOARD OPERATORS AREN'T RESPONSIBLE FOR THINGS OTHER PEOPLE WRITE IN THE WAKE OF A COURT RULING THAT COMPUSERVE WASN'T LIABLE FOR WHAT PEOPLE WROTE ANY MORE THAN A BOOKSELLER IS RESPONSIBLE FOR THE CONTENTS OF BOOKS IT SELLS THESE COZY VOLUNTEER COMMUNITIES THE ELECTRONIC EQUIVALENT OF BOSWELL AND JOHNSON'S 18TH CENTURY LONDON COFFEEHOUSES POLICE THEMSELVES INFORMALLY PEOPLE WHO ARE OFFENSIVE OR IRRELEVANT ARE SHOUTED DOWN BY FLAME MAIL A BARRAGE OF MESSAGES BY ANGRY USERS THAT SOMETIMES CAN EVEN OVERWHELM AN OFFENDER'S COMPUTER OTHER TIMES THE INDIGNANT WAGE CANCEL WARS IN WHICH THEY SEND COMMANDS TO CANCEL THE FOE'S MESSAGE FROM THE BULLETIN BOARD ON INTERNET PEOPLE ORDER THEIR COMPUTERS NOT TO ACCEPT ANY MESSAGES FROM PARTICULAR SENDERS BUT A FEW YEARS AGO USERS DEVELOPED ANONYMOUS SERVERS COMPUTERS CONNECTED TO THE NETWORK THAT STRIPPED AWAY THE ORIGINAL SENDER'S NAME BEFORE SENDING IT ON INTERNET THE CAPABILITY WAS DESIGNED TO ENCOURAGE OPEN DISCUSSIONS AMONG VICTIMS OF CHILD ABUSE OR AIDS AND ORIGINALLY WAS USED ONLY IN SUCH GROUPS HOWEVER A COMPUTER IN HELSINKI FINLAND WAS DESIGNED TO SEND ANONYMOUS MESSAGES WHEREVER THE SENDER WANTED SOME OF THESE MESSAGES ON THE SCI SECTION OF INTERNET'S USENET SUBSYSTEM TICKED OFF RICHARD DEPEW THE PROFESSOR OF MICROBIOLOGY AND IMMUNOLOGY AT NORTHEASTERN OHIO UNIVERSITIES COLLEGE OF MEDICINE THE ANONYMOUS SERVERS WERE BREAKING DOWN SOME OF THE BARRIERS AND TRADITIONS THAT KEEP THE INTERNET USEFUL SAYS DR DEPEW WHOSE BATTLE WAS REPORTED IN THE CHRONICLE OF HIGHER EDUCATION A TRADE WEEKLY AFTER NUMEROUS ONLINE DISCUSSIONS OF THE ANONYMOUSSERVER PROBLEM DR DEPEW WROTE A PROGRAM HE CALLED ARMM FOR AUTOMATED RETROACTIVE MINIMAL MODERATOR ALTHOUGH THE PROGRAM RAN ON THE COMPUTER HE OPERATES IN ROOTSTOWN AS A LOCAL NODE OF THE INTERNET IT CANCELED MESSAGES FROM THE HELSINKI COMPUTER TO ANY SCI DISCUSSION GROUP AS SOON AS HE ACTIVATED IT IN APRIL DR DEPEW WAS FLAMED BY OTHER USERS ILLUSTRATING THE PASSION WITH WHICH PEOPLE DEFEND COMPUTER SPEECH HE WAS CALLED A MADDOG SIC ON THE LOOSE WHO NEEDS TO BE SEDATED HE WAS CALLED A RHINOCEROUS SIC HE WAS COMPARED TO A CHILDMOLESTOR SIC WHO GOES OUT AND REOFFENDS IMMEDIATELY UPON RELEASE HE WAS CALLED AN IGNORANT PETTY TYRANT WITHIN 12 HOURS HE SHAMEFACEDLY RECALLED THE PROGRAM ADMITTING HE MADE A MISTAKE HE SAYS HE WILL NEVER DO IT AGAIN IN ANOTHER CONTROVERSY BITTER DEBATES RAGED AT MANY CANADIAN UNIVERSITIES LAST YEAR OVER THREE INTERNET DISCUSSIONS SEX BESTIALITY SEX TORTURE AND SEX BONDAGE SOME WEEKS THOSE DISCUSSIONS WERE DOMINATED BY LEGAL SCHOLARS BUT OTHER WEEKS THEY INCLUDED BRUTAL STORIES AND PICTURES OF SCREAMING WOMEN SEVERAL COLLEGES INCLUDING SIMON FRASER UNIVERSITY IN VANCOUVER BRITISH COLUMBIA CUT THOSE DISCUSSIONS OFF THEIR COMPUTERS IN THE US CALIFORNIA'S SANTA ROSA JUNIOR COLLEGE RECENTLY SUSPENDED TENURED JOURNALISM TEACHER ROGER KARRAKER WHILE IT TRIES TO DETERMINE WHETHER HE'S RESPONSIBLE FOR STUDENT MESSAGES ON A SCHOOL BULLETIN BOARD THAT HE OPERATED THE BOARD HAS SOME 200 DISCUSSION GROUPS THAT ARE USED BY FACULTY AND STUDENTS EARLIER THIS YEAR AT STUDENT REQUEST MR KARRAKER STARTED MENONLY AND WOMENONLY CONFERENCES IN WHICH USERS HAD TO PROMISE NOT TO REVEAL THE CONTENTS WHEN ONE WOMAN LEARNED ABOUT ALLEGEDLY OBSCENE MESSAGES THAT AN EXBOYFRIEND HAD WRITTEN ABOUT HER ON THE ALLMALE BOARD SHE COMPLAINED TO MR KARRAKER HE IMMEDIATELY SHUT DOWN THE CONFERENCE AND BANNED THE STUDENTS WHO HAD BROKEN THE CONFIDENTIALITY PACT SHE THEN COMPLAINED TO THE COLLEGE OF SEXUAL HARRASSMENT BASED ON THE MESSAGES AND MR KARRAKER WAS PUT ON PAID LEAVE JAMES MITCHELL THE COLLEGE'S PERSONNEL DIRECTOR SAID THE LEAVE WAS FOR HIS OWN PROTECTION AND ISN'T A PUNISHMENT HE SAYS THAT UNDER CALIFORNIA HARASSMENT LAWS WE HAD A SITUATION THAT APPEARED TO BE SERIOUS MR MITCHELL SAYS THAT IF THE ITEM HAD BEEN IN A STUDENT NEWSPAPER IT PROBABLY WOULD HAVE BEEN PROTECTED UNDER THE FIRST AMENDMENT BUT OUTSIDE OF STUDENT NEWSPAPERS SPEECH CAN BE CHALLENGED AS HARASSMENT HE SAYS EVEN IF IT WAS WRITTEN ON A BATHROOM WALL AND A JANITOR DIDN'T WASH IT OFF WE'D WARN HIM OF THE RISK OF HARASSMENT CHARGES MR KARRAKER SAYS THAT AS A BULLETIN BOARD OPERATOR HE'S PROTECTED JUST AS BOOKSELLERS ARE THIS ISN'T PUBLISHING IN THE SENSE THAT THERE'S AN EDITOR WHO KNOWS EVERYTHING THAT GOES IN HE SAYS 9305240154 930524 DIVIDEND NEWS CITIZENS UTILITIES CO CITIZENS UTILITIES CO STAMFORD CONN SAID ITS BOARD APPROVED A 2FOR1 STOCK SPLIT FOR ITS SERIES A AND SERIES B COMMON SHARES THE COMPANY WHICH OPERATES GAS WATER ELECTRIC WASTEWATER AND TELECOMMUNICATIONS UTILITIES IN 13 STATES SAID THE PAY AND RECORD DATE FOR THE STOCK SPLIT CAN'T BE SET UNTIL THE PLAN RECEIVES APPROVAL FROM VARIOUS REGULATORS CITIZENS UTILITIES ALSO ANNOUNCED A 1 SECONDQUARTER STOCK DIVIDEND FOR BOTH SERIES A AND SERIES B STOCK PAYABLE JUNE 30 TO SHAREHOLDERS OF RECORD JUNE 1 THE COMPANY SAID THE STOCK DIVIDEND HAS A CASH EQUIVALENT OF ABOUT 3725 CENTS A SHARE 9305240153 930524 TECHNOLOGY A SPECIAL REPORT AGAINST THE ODDS FACTORY FORMULAS BY DAVID P HAMILTON TOKYO ABOUT 20 YEARS AGO HIROYUKI YOSHIKAWA MADE AN UNSETTLING OBSERVATION TEACHING HIS STUDENTS AT TOKYO UNIVERSITY ABOUT MANUFACTURING DESIGN WASN'T HELPING THEM DESIGN BETTER MANUFACTURING SYSTEMS THE PROBLEM THE PROFESSOR EVENTUALLY REALIZED DIDN'T LIE WITH HIS STUDENTS OR EVEN WITH THE INFORMATION THEY WERE STUDYING IT WAS THE WAY THE ENTIRE SUBJECT WAS TAUGHT THE STUDENTS COULD EASILY ABSORB TECHNICAL DETAILS FROM TEXTBOOKS ABOUT MACHINING PROCESSES SUCH AS GRINDING WELDING AND STAMPING BUT ALONG THE WAY THEY WERE LEARNING ONLY HOW TO ANALYZE EXISTING PRODUCTION LINES NOT HOW TO DESIGN THEIR OWN I FELT IT WAS STRANGE THAT THESE STUDENTS WHO LEARNED THE THEORY OF GRINDING AND MACHINING COULDN'T ACTUALLY BECOME VERY GOOD ENGINEERS DR YOSHIKAWA SAYS OTHER RESEARCHERS MIGHT HAVE JUST SHRUGGED BUT NOT DR YOSHIKAWA HE TOOK THE INSIGHT AS A CHALLENGE AND BEGAN WORK ON A MATHEMATICSBASED SCIENCE OF DESIGN HIS GOAL WAS TO TRANSFORM DESIGN FROM AN ART DEPENDENT LARGELY ON INTUITION INTO A SCIENCE IN WHICH RESEARCHERS COULD EXTRAPOLATE NEW DESIGNS FROM BASIC PRINCIPLES IN ESSENCE TO DO FOR DESIGN AND MANUFACTURING WHAT ISAAC NEWTON DID FOR THE FORCE OF GRAVITY EVENTUALLY DR YOSHIKAWA SAYS SUCH THEORIES SHOULD MAKE IT EASIER TO TRANSFER PRODUCTION SKILLS FROM ONE FACTORY TO ANOTHER AND EVEN TO AUTOMATE THE WAY PRODUCTS AND MANUFACTURING PROCESSES ARE DESIGNED TO DATE DR YOSHIKAWA'S ABSTRACT AND RATHER QUIXOTIC SEARCH HAS COME UP EMPTY HIS MUCHSOUGHTAFTER THEORIES OF MANUFACTURING AND DESIGN ARE NOWHERE IN SIGHT HIS IDEAS HOWEVER HAVE WON A WIDE CIRCLE OF ADMIRERS IN JAPAN PARTICULARLY IN THE JAPANESE GOVERNMENT WHICH IN 1990 PROPOSED A 10YEAR 1 BILLION RESEARCH PROJECT INTENDED TO REVOLUTIONIZE MANUFACTURING THAT PROGRAM KNOWN OFFICIALLY AS THE INTELLIGENT MANUFACTURING SYSTEM OR IMS ENCOMPASSES A BROAD RANGE OF RESEARCH ACTIVITY BUT AT ITS CORE IT'S JUST WHAT DR YOSHIKAWA ORDERED A RESEARCH PROGRAM TO TRANSFORM PRODUCTION FROM AN ART TO A SCIENCE IT'S ALSO AN AMBITIOUS ATTEMPT TO TURN WEAKNESS INTO STRENGTH USING JAPAN'S PRODIGIOUS MANUFACTURING POWERS TO BOLSTER ONE OF ITS WEAKEST SECTORS BASIC SCIENCE IT HAS OFTEN BEEN SAID THAT JAPAN'S MANUFACTURING TECHNOLOGY IS SUPERB BUT ITS CREATION OF SCIENTIFIC KNOWLEDGE AND NEW PRODUCTS IS POOR SAYS MICHIYUKI UENOHARA A SENIOR EXECUTIVE AT NEC CORP HE SEES THE IMS PROGRAM AS A WAY TO REDRESS THAT IMBALANCE MANUFACTURING IS ONE AREA WHERE JAPAN IS CLEARLY ABLE TO CONTRIBUTE TO THE WORLD ENGINEERING COMMUNITY HE SAYS BUT IMS MUST CLEAR A VARIETY OF HURDLES BEFORE IT CAN LIVE UP TO DR YOSHIKAWA'S DREAMS THE PROGRAM HAS BEEN SLOW GETTING OFF THE GROUND LARGELY BECAUSE OF AMERICAN AND EUROPEAN FEARS THAT IT WOULD SIMPLY TRANSFER ADVANCED MANUFACTURING TECHNOLOGIES TO JAPANESE FIRMS NOT UNTIL EARLY THIS YEAR DID IMS MANAGE TO LAUNCH SIX PILOT PROJECTS DESIGNED TO SHOW HOW INTERNATIONAL COLLABORATIONS BETWEEN COMPANIES FROM JAPAN THE US THE EUROPEAN COMMUNITY AND A FEW SMALLER NATIONS WOULD WORK IN PRACTICE THE PROGRAM'S FUTURE IS EQUALLY HAZY SINCE THE US HAS SO FAR DECLINED TO PROVIDE ANY MONEY FOR THE COOPERATIVE RESEARCH PROJECTS IMS ALSO FACES A BARRIER OF SKEPTICISM SOME SCIENTISTS DON'T BELIEVE THAT SUCH INTUITIVE HANDSON ACTIVITIES AS DESIGN AND MANUFACTURING CAN EVER BE DESCRIBED MATHEMATICALLY REALLY CHALLENGING DESIGN IS A CREATIVE INNOVATIVE PROCESS SAYS ROBERT MANN PROFESSOR EMERITUS OF BIOMEDICAL ENGINEERING AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY ATTEMPTS TO CREATE A SCIENCE OF DESIGN HE SAYS ARE LIKE LOOKING FOR AN ALGORITHM TO PAINT A PICASSO OR A RENOIR ON FIRST GLANCE THERE IS LITTLE ABOUT DR YOSHIKAWA TO SUGGEST HIS PASSION FOR SUCH CONTROVERSIAL CONCEPTS WEARING A DARK TWEED JACKET THE 59YEAROLD ENGINEER SPEAKS IN A SOFT BUT ANIMATED VOICE OCCASIONALLY PUNCTUATING HIS COMMENTS WITH A RESTRAINED WAVE OF HIS HAND THE ONLY HINT OF IDIOSYNCRASY IS HIS THICK UNRULY SHOCK OF GRAYISHWHITE HAIR BUT ONCE HE BEGINS TO DESCRIBE IMS IT QUICKLY BECOMES CLEAR THAT HIS VISION OF MANUFACTURING SCIENCE IS FAR FROM CONVENTIONAL TO DR YOSHIKAWA A RIGOROUS THEORY OF MANUFACTURING OFFERS A PANACEA FOR MANY OF THE WORLD'S MOST PRESSING PROBLEMS A ONESIZEFITSALL APPROACH FOR CHALLENGES AS DIVERSE AS JAPAN'S TRADE IMBALANCE GLOBAL ECONOMIC COMPETITIVENESS THIRD WORLD DEVELOPMENT AND ENVIRONMENTAL DEGRADATION DR YOSHIKAWA DEFINES THE NEED FOR IMS BY CRITIQUING JAPANESE INDUSTRY IN TERMS SIMILAR TO THOSE OF JAPAN'S US CRITICS HE ARGUES THAT JAPAN HAS HAD A FREE RIDE IN THE WORLD TRADING SYSTEM FOR INSTANCE HE SAYS JAPAN DIDN'T HAVE TO SPEND HEAVILY ON DEFENSE DURING THE COLD WAR ALLOWING IT TO INVEST MORE IN ITS OWN INDUSTRY WE HAVE BEEN THE NEWCOMER WE HAVE NOT HAD TO PAY FOR THE CONSTRUCTION AND MAINTENANCE OF THE WORLD TRADING SYSTEM DR YOSHIKAWA SAYS AS A RESULT HE SAYS JAPAN HAS BUILT UP ITS MANUFACTURING EXPERTISE AT THE EXPENSE OF ITS COMPETITORS CAUSING INSTABILITY IN WORLD TRADE JAPAN MUST DO SOMETHING TO BECOME A FULL MEMBER OF THE CLUB DR YOSHIKAWA SAYS THAT'S WHERE THE SCIENCE OF MANUFACTURING WOULD COME IN MOST MANUFACTURING TECHNOLOGY IS NOT SCIENTIFICALLY BASED IT'S BASED ON EXPERIENCE SAYS NEC'S MR UENOHARA TO TRANSFER THAT KNOWLEDGE YOU HAVE TO MAKE IT MORE SCIENTIFIC THESE DAYS FOR ONE COMPANY TO LEARN A NEW MANUFACTURING TECHNIQUE FROM ANOTHER BOTH FIRMS USUALLY HAVE TO EXCHANGE KEY EMPLOYEES WHO CAN TEACH EACH OTHER THEIR HANDSON UNDERSTANDING OF THE PROCESSES INVOLVED IDEALLY MANUFACTURING SCIENCE WOULD ELIMINATE SOME OF THE CUMBERSOME INTERMEDIATE STEPS BY ALLOWING FACTORY MANAGERS TO EXCHANGE UNDERSTANDABLE ENCODED DESCRIPTIONS OF THEIR TECHNIQUES ONCE THOSE BARRIERS ARE DOWN DR YOSHIKAWA SAYS JAPAN WILL BE ABLE TO DIFFUSE ITS PENTUP MANUFACTURING SKILL FAR MORE EASILY TO BOTH THE DEVELOPED AND THE DEVELOPING WORLD ECONOMIC FACTORS AREN'T DR YOSHIKAWA'S ONLY REASONS FOR PUSHING THE PROGRAM HE ARGUES THAT COMPANIES SPEND TOO MUCH TIME DUPLICATING ONE ANOTHER'S EFFORTS IN A QUEST FOR COMPETITIVE ADVANTAGE A LOT OF USELESS TECHNOLOGY HAS BEEN DEVELOPED HE SAYS IF NATURE WAS INFINITE THAT WOULD BE OK BUT THE CAPACITY OF THE EARTH IS LIMITED COMPARED TO THE SCOPE OF OUR ACTIVITY INSTEAD DR YOSHIKAWA SAYS COMPANIES SHOULD COOPERATE ON BASIC PRECOMPETITIVE MANUFACTURING RESEARCH NOW ONE OF THE MAIN GOALS OF IMS THE PROJECT HAS EMPHASIZED INTERNATIONAL PARTICIPATION SO HEAVILY IN FACT THAT ONLY ONE OF THE SIX PILOT PROJECTS NOW UNDER WAY IS LED BY A JAPANESE COMPANY TWO HAVE NO JAPANESE PARTICIPANTS AT ALL HERETICAL AS THEY MIGHT SEEM IN JAPAN SUCH VIEWS HAVEN'T COST DR YOSHIKAWA THE RESPECT OF HIS COLLEAGUES EARLIER THIS YEAR THEY ELECTED HIM PRESIDENT OF TOKYO UNIVERSITY NOR HAVE HIS OPINIONS CREATED WIDESPREAD CREDIBILITY PROBLEMS AMONG INDUSTRIAL LEADERS DESPITE THEIR LONGSTANDING DISTRUST OF ACADEMICS LEADING JAPANESE FIRMS SUCH AS HITACHI LTD MITSUBISHI ELECTRIC CORP AND TOYOTA MOTOR CORP HAVE BEEN QUICK TO ENROLL IN IMS PART OF THE REASON MAY BE THAT ONLY ONE OF THE SIX PILOT PROJECTS ONE LED BY MITSUBISHI ELECTRIC IS EXPLICITLY FOCUSED ON DEVELOPING DR YOSHIKAWA'S MANUFACTURING SCIENCE THE REMAINDER ADDRESS MORE CONVENTIONAL TOPICS RANGING FROM FLEXIBLE MANUFACTURING TO CLEAN MANUFACTURING IN THE CHEMICAL INDUSTRY IN SOME QUARTERS SKEPTICISM ABOUT DR YOSHIKAWA'S NOTIONS DOES RUN FAIRLY HIGH EVEN AMONG THOSE WHO ARE SYMPATHETIC TO THE BASIC PREMISE IF YOU CAN CAPTURE PEOPLE'S KNOWLEDGE OF HOW TO MAKE THINGS THROUGH WHATEVER TECHNIQUES YOU CAN COME UP WITH THAT'S A VERY USEFUL THING SAYS DAVID HARDT DIRECTOR OF MIT'S LABORATORY FOR MANUFACTURING AND PRODUCTIVITY THE PROBLEM IS THE EVIDENCE IS THAT IT'S A VERY DIFFICULT THING TO DO DR HARDT THINKS SCIENTISTS ARE LIKELY TO HAVE BETTER LUCK DESCRIBING THE PHYSICAL AND CHEMICAL PROCESSES OF MANUFACTURING AREAS MUCH CLOSER TO TRADITIONAL SCIENCE THAN DR YOSHIKAWA'S IDEAS IT'S FAR FROM CLEAR HOWEVER THAT IMS WILL ADVANCE FAR ENOUGH TO TACKLE SUCH CHALLENGES WE'RE EAGER TO CONTINUE BUT WE'RE NOT SURE ABOUT THE US AND EUROPE SAYS YUJI FURUKAWA AN IMS STEERING COMMITTEE MEMBER AND ENGINEERING PROFESSOR AT TOKYO METROPOLITAN UNIVERSITY HE FEARS THAT IMS PARTICIPANTS WILL LOSE INTEREST WHILE GOVERNMENTS NEGOTIATE THE PROJECT'S NEXT PHASE FOR ITS PART THE US SAYS ONLY THAT IT WILL STUDY THE OUTCOME OF THE PILOT PROJECTS BEFORE REACHING A DECISION ABOUT THE FUTURE THE US GOVERNMENT ALREADY SPENDS AN ESTIMATED 12 BILLION A YEAR ON MANUFACTURING RESEARCH HOWEVER AND US OFFICIALS SAY IT MAY BE MORE LIKELY TO FOCUS ITS FUTURE ATTENTION ON PROJECTS SPECIFICALLY INTENDED TO BOOST US COMPETITIVENESS MR HAMILTON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S TOKYO BUREAU 9305240152 930524 WHO'S NEWS VALUEVISION INTERNATIONAL INC VALUEVISION INTERNATIONAL INC MINNEAPOLIS MARSHALL S GELLER SENIOR MANAGING PARTNER OF GOLENBERG & GELLER INC AND ROBERT J KORKOWSKI SENIOR VICE PRESIDENT FINANCE OF OPUS CORP WERE NAMED DIRECTORS OF THIS TELEVISION HOME SHOPPING COMPANY THEY FILL VACANCIES CREATED BY IRA KANARICK AND GARY MOSCOWITZ WHO RESIGNED FROM THE BOARD 9305240151 930524 WHO'S NEWS BIOMEDICAL WASTE SYSTEMS INC BIOMEDICAL WASTE SYSTEMS INC BOSTON JOHN PAPPAJOHN 64 YEARS OLD AND LIVINGSTON KOSBERG 56 WERE NAMED DIRECTORS OF THIS PROVIDER OF MEDICAL WASTE MANAGEMENT SERVICES INCREASING BOARD MEMBERSHIP TO NINE MR PAPPAJOHN IS PRESIDENT OF EQUITY DYNAMICS INC DES MOINES IOWA MR KOSBERG IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF US PHYSICAL THERAPY INC HOUSTON 9305240150 930524 POLITICS & POLICY KENNEDY IS APPOINTED DIRECTOR OF PARK SERVICE WASHINGTON PRESIDENT CLINTON APPOINTED ROGER KENNEDY DIRECTOR OF THE SMITHSONIAN INSTITUTION'S NATIONAL MUSEUM OF AMERICAN HISTORY TO BE DIRECTOR OF THE NATIONAL PARK SERVICE MR KENNEDY WHO HAS BEEN DIRECTOR OF THE MUSEUM SINCE 1979 HAS BEEN A VICE PRESIDENT OF THE FORD FOUNDATION AND THE HOST OF SEVERAL TELEVISION SERIES DURING THE 1950S HE WAS AN ATTORNEY IN THE JUSTICE DEPARTMENT SPECIAL ASSISTANT TO THE SECRETARY OF HEALTH EDUCATION AND WELFARE AND A SPECIAL ASSISTANT TO THE SECRETARY OF LABOR KARIN SHELDON PRESIDENT OF THE WILDERNESS SOCIETY PRAISED THE APPOINTMENT DESCRIBING MR KENNEDY AS A RENAISSANCE MAN WHO HAS IDEAS ENERGY AND BRAINS THE PARK SERVICE PART OF THE INTERIOR DEPARTMENT HAS A PROPOSED 1994 BUDGET OF 15 BILLION AND NEARLY 20000 EMPLOYEES OVERSEEING THE OPERATION OF 367 NATIONAL PARK UNITS 9305240149 930524 WHO'S NEWS SYNERCOM TECHNOLOGY INC SYNERCOM TECHNOLOGY INC HOUSTON MARSHALL D BUTLER 66 YEARS OLD WAS NAMED CHAIRMAN OF THIS PROVIDER OF COMPUTER HARDWARE SOFTWARE AND SERVICES HE RECENTLY RETIRED AS CHIEF EXECUTIVE OFFICER OF AVX/KYOCERA A UNIT OF KYOTO JAPANBASED KYOCERA CORP SYNERCOM SAID DONALD K GRIERSON 58 WAS NAMED VICE CHAIRMAN HE HAD BEEN THE COMPANY'S CHAIRMAN SINCE 1988 BUT A SPOKESMAN SAID THE BOARD DECIDED MR BUTLER WOULD BE A BETTER CHOICE FOR THE POST MR GRIERSON WAS PREVIOUSLY EMPLOYED BY GENERAL ELECTRIC CO THE SPOKESMAN SAID 9305240148 930524 MARKETING & MEDIA LAST CALL AT CHEERS' SCORES IMPRESSIVE NIELSEN RATINGS NEW YORK THE FINAL EPISODE OF CHEERS ON NBC THURSDAY WAS WATCHED BY 931 MILLION INDIVIDUALS OR 424 MILLION HOMES ACCORDING TO NATIONAL RATINGS RELEASED BY AC NIELSEN CO THE FINALE WAS WATCHED BY 455 OF THOSE WATCHING TELEVISION NIELSEN SAID THE IMPRESSIVE RATINGS DIDN'T MAKE IT THE TOP RATED PROGRAM OF ALL TIME HOWEVER THAT RECORD IS STILL HELD BY THE KOREAN WAR SITCOM MASH WHOSE LAST EPISODE AIRED IN FEBRUARY 1983 AND DREW 1216 MILLION PEOPLE OR 77 OF THOSE WATCHING TELEVISION AND FOR THOSE WHO WEREN'T DRAWN TO THE ENDLESS HYPE FOR THE LAST CALL OF CHEERS NBC A UNIT OF GENERAL ELECTRIC CO SCHEDULED A REPEAT BROADCAST OF THE FINAL EPISODE FOR LAST NIGHT AN UNCOMMON ENCORE COMING SO CLOSE AFTER THE ORIGINAL WAS AIRED 9305240147 930524 WHO'S NEWS VIACOM INC VIACOM INC NEW YORK MARGUERITE HEILMAN 37 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT EMPLOYEE BENEFITS OF VIACOM INTERNATIONAL A CABLE AND PREMIUM TELEVISION UNIT OF THIS ENTERTAINMENT CONCERN MS HEILMAN WAS PREVIOUSLY DIRECTOR EMPLOYEE BENEFITS AT THE UNIT 9305240146 930524 WHO'S NEWS ROY F WESTON INC ROY F WESTON INC WEST CHESTER PA M SALAH ABDELHAMID 48 YEARS OLD AND VISHWA K VARMA 44 WERE NAMED TO THE BOARD OF THIS ENVIRONMENTAL SERVICES COMPANY MR ABDELHAMID IS VICE PRESIDENT AND MANAGER OF THE DESIGN AND APPLIED TECHNOLOGY UNIT AND MR VARMA IS VICE PRESIDENT AND SOUTHEASTERN REGION MANAGER THEY SUCCEED PETER J MARKS 51 VICE PRESIDENT AND MANAGER OF THE ECONENVIRONOMICS UNIT AND MICHAEL M MAUZY 64 VICE PRESIDENT WHOSE TERMS ENDED THE COMPANY HAS THREE BOARD SEATS ON WHICH THREE COMPANY OFFICERS SERVE FOR ONEYEAR ROTATIONS 9305240145 930524 GERMAN CAR REGISTRATIONS DROP FLENSBURG GERMANY GERMAN NEWCAR REGISTRATIONS FELL 67 IN APRIL FROM MARCH THE FEDERAL MOTOR VEHICLES OFFICE SAID THE TOTAL OF 339769 WAS DOWN 15 FROM THE YEAREARLIER LEVEL THE OFFICE SAID IN MARCH REGISTRATIONS HAD SHOT UP 53 FROM FEBRUARY BUT WERE OFF 15 FROM MARCH 1992 9305240144 930524 PENN CENTRAL CLOSES PURCHASE CINCINNATI PENN CENTRAL CORP SAID IT COMPLETED ITS PREVOUSLY ANNOUNCED PURCHASE OF LEADER NATIONAL INSURANCE CO FROM DYSONKISSNERMORAN CORP FOR 38 MILLION LEADER IS AN AUTO INSURANCE CONCERN PENN CENTRAL IS A SPECIALTY PROPERTY AND CASUALTY INSURANCE CONCERN 9305240143 930524 WHO'S NEWS FORTIS INTERNATIONAL NV FORTIS INTERNATIONAL NV BRUSSELS EDWARD M MAHONEY 63 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FORTIS ADVISERS/INVESTORS A DIVISION OF THE BELGIAN/DUTCH FINANCIAL SERVICES COMPANY'S US UNIT FORTIS INC HE WILL CONTINUE AS PRESIDENT OF FORTIS FINANCIAL GROUP A US MONEY MANAGEMENT UNIT DEAN KOPPERUD 40 WAS NAMED PRESIDENT OF FORTIS ADVISERS/INVESTORS AND BEN CUTLER WAS NAMED PRESIDENT OF FORTIS LIFE MR KOPPERUD AND ROBERT CLANCY 43 SENIOR VICE PRESIDENT AT FORTIS ADVISERS/INVESTORS WERE ELECTED TO THE BOARD OF FORTIS ADVISERS/INVESTORS INCREASING THE BOARD'S SIZE TO SIX MEMBERS FROM FIVE ONE OF THE APPOINTMENTS FILLS A VACANCY CREATED BY THE RESIGNATION OF KERRY CLAYTON 47 WHO CONTINUES AS PRESIDENT OF FORTIS BENEFITS INSURANCE CO 9305240142 930524 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK THIS PROVIDER OF DRUGS AND MEDICAL SUPPLIES NAMED HANS MUELLER 52 YEARS OLD SENIOR VICE PRESIDENT BUSINESS DEVELOPMENT OF ITS PHARMACEUTICAL DIVISION WYETHAYERST LABORATORIES MR MUELLER WAS MOST RECENTLY VICE CHAIRMAN OF NOVA PHARMACEUTICAL CORP HE SUCCEEDS THOMAS CAVANAGH 57 WHO WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT INVESTOR RELATIONS OF THE PARENT 9305240141 930524 TECHNOLOGY A SPECIAL REPORT STARTING EARLY STAR TECHS THE NEXT GENERATION A ROUNDTABLE DISCUSSION ABOUT NURTURING GENIUS IN CHILDREN HIGH TECHNOLOGY IS ALREADY SEARCHING FOR THE NEXT GENERATIONS OF INNOVATORS AND INVENTORS WITHOUT FRESH INFUSIONS OF CREATIVE TALENT ENTIRE ORGANIZATIONS MAY WITHER AND INDUSTRIES MAY STAGNATE BUT HOW SHOULD THESE BRIGHT YOUNG INDIVIDUALS BE NURTURED WHERE WILL THEY BE FOUND AND WILL THERE BE ENOUGH OF THEM TO RESPOND TO THE WIDENING ARRAY OF COMPLEX PROBLEMS AND CHALLENGES AHEAD THE WALL STREET JOURNAL RECRUITED SEVERAL DISTINGUISHED THINKERS TO DISCUSS WAYS OF NURTURING HIGHTECH GENIUS IN CHILDREN TO MATCH THE LOFTY TOPIC WE TRIED A HIGHERTECH FORMAT RATHER THAN HAVING EVERYONE FLY IN AND GATHER FOR A LONG SESSION AROUND A CONFERENCE TABLE WE ARRANGED THROUGH H&R BLOCK CO'S COMPUSERVE UNIT BASED IN COLUMBUS OHIO FOR AN ONLINE ELECTRONIC CONVERSATION THAT RAN FOR ALMOST TWO WEEKS USING LOCAL PHONE LINES COMPUSERVE'S WORLDWIDE COMMUNICATIONS NETWORK ALLOWED THE PANELISTS TO EXCHANGE MESSAGES AND ARGUMENTS AT THEIR CONVENIENCE DAY OR NIGHT FROM OFFICE OR FROM HOME OR FROM LAPTOP EN ROUTE JOINING THE ROUNDTABLE WERE TWO PROMINENT INNOVATORS IN AMERICAN ACADEMIA A US COMPUTER EXECUTIVE WHO HAS FORGED PARTNERSHIPS WITH PUBLIC SCHOOLS AN ENGINEER WHO DEVELOPED SOME OF THE FIRST MICROCOMPUTERS A UK PHYSICIST WHO HELPS SHAPE CURRICULA IN SCOTLAND AND A JAPANESEBORN AUTHOR WHO CONSULTS WIDELY WITH INDUSTRY LEADERS IN TOKYO WALL STREET JOURNAL NEWS EDITOR FRANK EDWARD ALLEN SERVED AS MODERATOR AT TIMES THE DIALOGUE BOUNCED MORE THAN FLOWED THE GROUP DISCUSSED AND DEBATED AMONG OTHER THINGS THE WAYS CONVENTIONAL CLASSROOMS STIFLE CREATIVITY THE EFFECTS OF JAPAN'S EMPHASIS ON GROUP HARMONY INSTEAD OF INDIVIDUAL ACHIEVEMENT AND THE LIMITATIONS OF COMPUTERS AS TEACHERS EXCERPTS FROM THE CONVERSATION FOLLOW THE WALL STREET JOURNAL LET'S START FROM THE ASSUMPTION THAT GENIUS AND CREATIVITY ARE PRECIOUS ASSETS TO HIGHTECH INDUSTRIES HOW DOES AMERICAN CULTURE GO ABOUT NURTURING SUCH GENIUS AND CREATIVITY IN CHILDREN ARE WE DOING IT ALL WRONG A LOT OF THE TIME ARE WE WASTING THE TALENTS OF MANY CHILDREN SIMPLY BECAUSE WE AREN'T VERY SKILLFUL AT RECOGNIZING THEM AND ENCOURAGING THEM AND HOW DIFFERENT ARE THE APPROACHES IN SAY JAPAN OR THE UK OR EUROPE DAVID DWYER IF I HAVE ANYTHING TO SHARE IN THIS CONVERSATION IT WILL MOST LIKELY BE EXPERIENCES WE HAVE HAD IN THE APPLE CLASSROOMS OF TOMORROW PROJECT OVER THE PAST EIGHT YEARS THE APPLE CLASSROOMS OF TOMORROW PROJECT IS AN APPLE COMPUTER INCSPONSORED PROGRAM THAT GIVES STUDENTS AND TEACHERS ACCESS TO A WIDE RANGE OF TECHNOLOGIES TEACHERS DESIGN ACTIVITIES THAT GIVE CHILDREN THE OPPORTUNITY TO SOLVE REAL PROBLEMS WITH THE TECHNOLOGY WE HAVE HAD THE OPPORTUNITY TO SEE VARIOUS TECHNOLOGIES ENCOURAGE UNEXPECTED PARTICIPATION BY RELUCTANT LEARNERS CAMERON HARRISON MY MAIN INTEREST IS IN HOW CHILDREN LEARN PARTICULARLY IN THE CONTEXT OF SCHOOL LET ME BEGIN BY REGISTERING SOME DOUBTS ABOUT THE OPERATIONAL VALUE OF THE TERM GENIUS ESPECIALLY WHEN APPLIED TO A CHILD THE WORD HAS ASSOCIATED WITH IT NOTIONS OF CAPACITY OR INTRINSIC ABILITY WHICH I AS ONE INTERESTED IN PRODUCING LEARNING FIND UNHELPFUL I HAVE FORMED THE VIEW THAT WHATEVER THE ULTIMATE SOURCE OF EXCEPTIONAL PERFORMANCE IT IS THE RESULT OF EXCEPTIONAL LEARNING THEREFORE I PREFER TO ADDRESS THE QUESTION HOW CAN WE BEST PRODUCE EXCEPTIONAL LEARNING IN YOUNG PEOPLE ULTIMATELY I SUPPOSE I AM INTERESTED IN ASKING IF WE CAN MAKE SUCH EXCEPTIONAL LEARNING UNEXCEPTIONAL KENJI MURO AS YOU KNOW JAPANESE SOCIETY IS NOT BASED ON INDIVIDUALISM THE JAPANESE LIKE HARMONIOUS GROUP ACTIVITY I HAVE BEEN IN THAT ANTIINDIVIDUALISTIC SOCIETY FOR THREE WEEKS AND NOW I AM BACK TO THE US TO JOIN A CONFERENCE ON GENIUS IN CHILDREN AN IDEA BASED ON SUPERINDIVIDUALISM LEE FELSENSTEIN I AM AN ELECTRONIC ENGINEER WHO PLAYED A ROLE IN THE EARLY DEVELOPMENT OF THE PERSONALCOMPUTER INDUSTRY I AM A BELIEVER IN INFORMAL METHODS AND AN EXPERIMENTAL APPROACH TO THE PROBLEM OF THE NURTURING OF GENIUS IN THE YOUNG I LEARNED ALMOST NONE OF MY SKILLS AND CRAFT IN SCHOOL ALTHOUGH I HAD A GOOD SCHOOLING WHICH PROVIDED A BASE UPON WHICH I COULD LATER BUILD IN UNDERSTANDING THE WORLD ROGER SCHANK ONE THING TO SAY ABOUT NURTURING GENIUS IN CHILDREN IS THAT BY AND LARGE THE WAY NOT TO NURTURE IT IS WITH SCHOOL REALLY INTELLIGENT CHILDREN LIKE TO DISCOVER ANSWERS FOR THEMSELVES NOT BE TOLD ANSWERS AS TEACHERS ARE LIKELY TO DO FURTHER REALLY INTELLIGENT CHILDREN LIKE TO DISCOVER QUESTIONS WHICH WHEN ASKED OF TEACHERS ARE LIKELY TO FRIGHTEN TEACHERS BECAUSE THEY DO NOT KNOW THE ANSWERS IN SHORT SCHOOL SIMPLY DOESN'T WORK FOR BRIGHT KIDS THEY FIND THEMSELVES TORTURED BY NOT BEING ABLE TO SAY WHAT THEY THINK BECAUSE IT IS SOME OTHER KID'S TURN OR THEIR QUESTIONS ARE NOT IN THE CURRICULUM OR THEY ARE AFRAID OF SHOWING OFF AND BEING RIDICULED BY OTHER CHILDREN TRULY CREATIVE PEOPLE USUALLY ARE LONERS WORKING IN THEIR OWN WAY AT THEIR OWN PACE ON THEIR OWN SUBJECTS TO MAKE THIS HAPPEN SYSTEMATICALLY ONE NEEDS TO CREATE LEARNING ENVIRONMENTS THAT SUPPORT THAT KIND OF BEHAVIOR WSJ LET'S TRY TO COMBINE SOME OF THESE APPROACHES HOW DO WE GO ABOUT CREATING THE SPECIAL LEARNING ENVIRONMENTS THAT ROGER SCHANK ADVOCATES HOW DO WE ENSURE AS CAMERON HARRISON WOULD LIKE TO ENSURE THAT MORE CHILDREN HAVE MORE OPPORTUNITIES FOR EXCEPTIONAL LEARNING PERHAPS DAVID DWYER'S TEAM AT APPLE IS ONTO SOMETHING PROMISING AT LEAST IN TERMS OF TECHNOLOGIES THAT DAVID SAYS HAVE ENCOURAGED UNEXPECTED PARTICIPATION BY RELUCTANT LEARNERS DAVID PLEASE TELL US MORE MR DWYER STARTING FROM THE GROUND UP I'VE HAD THE PLEASURE OVER THE PAST YEARS TO WORK AT CREATING DIFFERENT KINDS OF LEARNING ENVIRONMENTS IN SCHOOLS INSTITUTIONS STILL WORTH THE EFFORT TO REFORM IN MY ESTIMATION THESE HAVE BEEN TECHNOLOGYRICH ENVIRONMENTS WHERE GOOD THINGS AND NOTSOGOOD THINGS HAVE HAPPENED RAISING A NUMBER OF HUNCHES ABOUT HOW TO SHAPE MORE PRODUCTIVE LEARNING ENVIRONMENTS FOR KIDS A SURPRISE ON THE PLUS SIDE IN A SIXTHGRADE CLASSROOM COMPUTERS WERE USED TO SELFPACE STUDENTS THROUGH THEIR COMPUTATIONAL MATH CURRICULUM ALL STUDENTS COMPLETED THE REGULAR CURRICULUM BY EARLY MARCH THE INSTITUTION WENT INTO A TIZZY WORRYING WHAT TO DO WITH THE KIDS UNTIL JUNE THEY COULDN'T BEGIN THE SEVENTHGRADE CURRICULUM OR WHAT WOULD HAPPEN THE NEXT YEAR ANSWER GIVE THE KIDS LOTS OF HANDSON COMPLEX MATHEMATICAL PROBLEMS TO SOLVE SURPRISE THE KIDS WHO WERE AT THE TOP OF THE CLASS IN TRADITIONAL COMPUTATIONAL MATH DIDN'T DO AS WELL WITH MANIPULATIVES AS SOME OF THE KIDS WHO WERE VERY POOR COMPUTATIONAL STUDENTS THIS SAME SCENARIO WAS ALSO SEEN AT ANOTHER OF OUR SCHOOLS WITH FOURTHGRADE STUDENTS INCLUDING LEARNING DISABLED STUDENTS OUR CONJECTURE KIDS WHO FIND LINEAR LANGUAGEINTENSIVE LEARNING EXPERIENCES DIFFICULT HAVE TO FIND MANY CREATIVE WAYS TO COMPENSATE IN CLASSROOMS IN EFFECT THEY ARE CONSTANTLY FACED WITH SIGNIFICANT PROBLEMS TO SOLVE KIDS WHO ARE TRADITIONALLY SUCCESSFUL JUST FILL IN THE BLANKS AND ARE NOT NECESSARILY CHALLENGED AT A HIGHERORDER COGNITIVE LEVEL WHEN THESE KIDS ARE GIVEN VERY DIFFERENT KINDS OF TASKS THAN ROUTINELY ASSIGNED THE ALTERNATIVE LEARNERS HAVE STRATEGIES THAT STAND THEM IN GOOD STEAD TRADITIONALLY SUCCESSFUL KIDS DO NOT WSJ WHAT ABOUT YOUNGER CHILDREN MR DWYER WE ALSO SAW SECOND AND THIRD GRADERS CONQUER KEYBOARDS WITH 15 MINUTES OF PRACTICE DAILY FOR SIX WEEKS PRACTICE THAT IS INTEGRATED INTO THEIR LANGUAGEARTS CURRICULUM TYPING AT 2030 WORDS A MINUTE THEY BEGAN TO ROLL OUT TWO TO THREEPAGE DOUBLESPACED ESSAYS ROUTINELY TEACHERS WERE OVERWHELMED WONDERING HOW THEY WERE EVER GOING TO GIVE KIDS FEEDBACK BUT MORE IMPORTANTLY TEACHERS DISCOVERED HOW INCREDIBLY RICH ARE THE IDEAS IN THE MINDS OF VERY YOUNG CHILDREN THEIR ENTIRE LEVEL OF EXPECTATION FOR THESE CHILDREN SHIFTED WSJ KENJI MURO HOW DO THESE APPROACHES TO LEARNING STRIKE YOU IS ALL THIS CONCERN ABOUT NURTURING INDIVIDUAL GENIUS A HOPELESSLY WESTERN NOTION WHAT DO YOU FIND IN JAPAN DOES THE PROMOTION OF GROUP HARMONY ALSO NURTURE CREATIVITY MR MURO THE CONCEPT OF EDUCATION IS VERY DIFFERENT IN JAPAN IN THE US I THINK EDUCATION MEANS TO DEVELOP THE FACULTIES AND POWERS OF ONE INDIVIDUAL AND TO FIND AND PULL THE SPECIAL INDIVIDUAL TALENT INTO EXISTENCE IN JAPAN WE HAVE IMPORTED EDUCATION THEORY FROM EUROPE AND THE US BUT THE DEEP UNDERLYING STRUCTURE OF EDUCATION IS REALLY MORE INFLUENCED BY THE CHINESE CONFUCIAN TRADITION AND A KIND OF JAPANESE FAMILY NATIONALISM IDEOLOGY EVERYONE THINKS JAPAN IS A CAPITALIST COUNTRY IT IS REALLY MORE A KIND OF CORPORATE FAMILY SOCIALISM WHERE THE BIG COMPANY TAKES CARE OF YOU LIKE THE FEUDAL STRUCTURE DID UP UNTIL 150 YEARS AGO IN THE JAPANESE LANGUAGE THE WORD FOR EDUCATION KYOIKU IS BUILT FROM TWO CHINESE CHARACTERSKYO MEANS TEACH AND IKU MEANS TO TAKE CARE OF AS A MOTHER TAKES CARE OF A BABY IN JAPAN THE PURPOSE OF EDUCATION IS I THINK NOT IN ORDER OF IMPORTANCE TO TEACH A JAPANESE IDENTITY TO TEACH THE SKILL OF LIVING HARMONIOUSLY TOGETHER IN A GROUP TO TEACH HOW TO DEVELOP THE GROUP SPIRIT SO THE GROUP GOES FORWARD AND UP AND VERY IMPORTANTLY TO EDUCATE TO GIVE THE MEANS TO THE INDIVIDUAL FOR UPWARD MOBILITY IN THE SOCIETY I REMEMBER THIS OLD JAPANESE SAYING SANNIN YOREBA MONJU NO CHIE IT MEANS THREE PEOPLE WORKING HARMONIOUSLY TOGETHER CAN CREATE AS MUCH WISDOM AS MONJU THE WISDOM BUDDHA JAPANESE SOCIETY PREFERS A SMALL TALENT THAT WORKS EASILY WITH OTHERS RATHER THAN THE GREAT TALENT OF AN ISOLATED PERSON WHO CAN'T WORK WITH OTHERS A SOCALLED GENIUS WSJ WHAT WAS YOUR OWN EDUCATIONAL EXPERIENCE LIKE MR MURO I DO NOT KNOW THE REASON BUT I HATED SCHOOL I THINK THE MAIN REASON WAS THAT I HAD TO SIT DOWN ON A CHAIR FOR 50 MINUTES AND NOT MOVE I WAS FORCED TO STAY ON THE CHAIR SO I ALWAYS HAD DREAMS AND FANTASIES OF MANY KINDS TO ESCAPE THE CLASSROOM SOMETIMES I WOULD PLAY MUSIC I LIKED IN MY HEAD OR TELL MYSELF A STORY AND MY GRADES WENT DOWN EVERY YEAR SINCE I WAS A FIFTHGRADE STUDENT I THINK THERE ARE MANY KIDS LIKE ME IN SCHOOLS IN BOTH JAPAN AND THE US MR SCHANK KENJI YOU NEED TO REALIZE THAT MOST KIDS HATE SCHOOL SCHOOL HAS LITTLE IN COMMON WITH WHAT I CALL NATURAL LEARNING NATURAL LEARNING IS BEST OBSERVED BY WATCHING CHILDREN GROW UP BEFORE THEY GO TO SCHOOL THEN INSTRUCTION IS ONLY ON DEMAND ONE ON ONE AND UNDER NO PRESSURE OF PERFORMANCE IF THE PARENT IS A GOOD TEACHER CHILDREN DO NOT NEED OR TAKE LESSONS IN WALKING OR TALKING THEY TRY AND FAIL AND DO BETTER NEXT TIME THE LEARNING PROCESS REVOLVES AROUND FAILURE NOT FAILURE THAT COMES WITH APPROBATION BUT FAILURE THAT ALLOWS A CHILD TO RECONSIDER WHAT HE WAS TRYING TO DO AND TRY AGAIN MR HARRISON DO KIDS HATE SCHOOL IN YOUR CULTURE MY EXPERIENCE IN THE UK AND EUROPE IS THAT IN GENERAL KIDS LIKE SCHOOL MORE OFTEN THAN THEY DON'T LIKE IT IT IS ALMOST CERTAINLY MISLEADING TO TALK IN TERMS OF BRIGHT OR DULL CHILDREN AS IF THERE WERE SOME SINGLE INTERNAL CAPACITY THAT COULD ACCOUNT FOR COMPLEX AND COMPLICATED DIFFERENCES IN COGNITIVE BEHAVIOUR IN A SIMPLE WAY THE TRUTH I ASSERT IS MORE COMPLICATED THAN THAT WHAT I AM CHALLENGING IS THE NOTION THAT A FINITE AND RELATIVELY CONSTANT CAPACITY TO LEARN CAN BE ATTRIBUTED TO ALL HUMAN BEINGS ONLY COMPARATIVELY RECENTLY IN HUMAN HISTORY HAS THE NOTION OF INTELLIGENCE BEEN USED TO ACCOUNT FOR DIFFERENCES IN HUMAN BEHAVIOR IN PREVIOUS CENTURIES AND IN DIFFERENT CULTURES SUCH DIFFERENCES MIGHT HAVE BEEN ACCOUNTED FOR IN TERMS OF BREEDING OR SOCIAL CLASS AM I ARGUING THAT ALL YOUNG PEOPLE COULD BE TURNED OVERNIGHT INTO WHAT WE WOULD DESCRIBE AS GENIUSES CERTAINLY NOT BUT I AM ASSERTING THAT THE PROCESS OF PRODUCING SUCH EXCEPTIONAL BEHAVIOR IS MUCH MORE OPEN TO INTERVENTION THAN WE HAVE SUSPECTED IN THE PAST THAT GENIUSES MAY BE BORN MIGHT BE TRUE THAT THEY MUST BE MADE CERTAINLY IS TRUE AND IT IS THIS LATTER PART OF THE PROPOSITION WHICH SEEMS TO ME TO CARRY WITH IT BOTH ENORMOUS POTENTIAL FOR GOOD AND ENORMOUS RESPONSIBILITY FOR THOSE OF US WHO CARE FOR OUR YOUNG PEOPLE WSJ LEE HOW ABOUT YOUR EXPERIENCE WITH THE HOMEBREW COMPUTER CLUB MR FELSENSTEIN IN 1975 A NUMBER OF INTERESTED PEOPLE WERE MEETING IN SILICON VALLEY TO EXPLORE THE NEWLY HATCHED PHENOMENON OF PERSONAL COMPUTERS AT THE THIRD MEETING OF THE HOMEBREW COMPUTER CLUB I SAW THAT MORE USEFUL INFORMATION WAS BEING TRANSFERRED IN THE HALLWAYS THAN IN THE MEETING ROOM WHERE ONE PERSON WAS TRYING TO HOLD A TUTORIAL A FEW MEETINGS LATER I HAD THE CHANCE TO BECOME THE MODERATOR AND I CRAFTED A STRUCTURE THAT BROUGHT THE HALLWAY ACTION INTO THE MEETING ROOM MY ROLE AS MODERATOR BECAME TO CHANNEL THE AUDIENCE'S STATEMENTS AWAY FROM DIALOGUE AND TO KEEP THEM OF A BRIEF INTRODUCTORY NATURE I HAD TO JUDGE WHEN THE AUDIENCE HAD REACHED THE END OF THE INTRODUCTIONS AND ADJOURN TO AN EXTENDED MIXANDMATCH SESSION IN WHICH PEOPLE NOW KNEW WITH WHOM THEY WANTED TO TALK MY TOOLS WERE WIT AND VERBAL NIMBLENESS RATHER THAN ANY SUPERIOR KNOWLEDGE OF THE SUBJECT THIS PROCESS WAS INCREDIBLY FRUITFUL IN TERMS OF FOSTERING INFORMATION EXCHANGE HIGHSCHOOL STUDENTS MIXED WITH 20YEAR VETERAN ENGINEERS IN DISCUSSING THE POTENTIALS OF THE NEW TECHNOLOGY DESIGNS OF HARDWARE AND SOFTWARE WERE CRITIQUED ALLIANCES WERE FORMED AND ADVICE THAT WOULD HAVE COMMANDED A HIGH PRICE IN A COMMERCIAL ENVIRONMENT WAS EXCHANGED FREELY TWENTYTHREE COMPANIES FORMED OUT OF THIS MILIEU INCLUDING APPLE COMPUTER WSJ WAS THERE SOMETHING MAGICAL ABOUT THIS APPROACH WHAT FACTORS DO YOU THINK MADE IT DISTINCTIVE AND SO RICH IN RESULTS MR FELSENSTEIN THIS PROCESS WAS ONE OF COLLECTIVE LEARNING WITHIN IT INDIVIDUALS OF TALENT COULD EMERGE AND BE EFFECTIVE IT WAS NOT MEDIATED AND NO GRADES WERE ASSIGNED ADMISSION WAS FREE ALTHOUGH DONATIONS WERE SUGGESTED AND THE CLUB NEVER RAN A DEFICIT SEVERAL THOUSAND PEOPLE PARTICIPATED DURING THE CLUB'S CRUCIAL FIRST TWO YEARS AND THE DEFINITION OF THE PERSONAL COMPUTER WAS SET BY THIS HODGEPODGE OF ASPIRANTS SECONDSTRINGERS HOBBYISTS AND ZEALOTS INSTITUTIONS LIKE THE HOMEBREW COMPUTER CLUB ARE NEEDED TODAY AND WILL BE FOR THE FORESEEABLE FUTURE I AM CURRENTLY CIRCULATING A PROPOSAL FOR A HACKER'S LEAGUE THAT WOULD PROVIDE A DECENTRALIZED STRUCTURE WITHIN WHICH TECHNOLOGICALLY INTERESTED PEOPLE NOT JUST THE YOUNG COULD EXPERIMENT WITH NETWORKED COMPUTERS HONE THEIR SKILLS AND DEVELOP MENTORING RELATIONSHIPS ACROSS TECHNOLOGICAL GENERATIONS TECHNOLOGY HAS ITS ATTRACTIONS BUT THIS TYPE OF INSTITUTION INFORMAL AMATEUR DECENTRALIZED AND WITH LITTLE EXCLUSIVITY HAS PROMISE I BELIEVE FOR THE KIND OF AUXILIARY FUNCTION NEEDED TO HELP YOUNGSTERS DEVELOP GREAT POTENTIAL SUCH INSTITUTIONS WOULD NEED TO BE INTEGRATED INTO NETWORKS OF EDUCATORS SO THAT REFERRALS COULD BE MADE AND EXTRACURRICULAR WORK COULD BE INTEGRATED INTO THE STUDENT'S LEARNING PLAN PROFESSIONAL ORGANIZATIONS SHOULD ENCOURAGE THE PROBONO CONTRIBUTION OF TIME ON THE PART OF THEIR MEMBERS TO THESE INSTITUTIONS SINCE MANY OF THE YOUNGSTERS THUS SERVED WILL MOVE INTO THE RANKS OF THE PROFESSION IT IS IMPORTANT TO THINK OF THESE AS LOCAL ORGANIZATIONS OPERATING WITHIN A HIGHLY NETWORKED STRUCTURE COMPUTER COMMUNICATIONS MAKE THIS POSSIBLE WITHOUT DEPENDING UPON STULTIFYING CENTRALIZED STRUCTURES WE MUST OPEN THE EDUCATIONAL LIVES OF OUR YOUNG TO THE SOCIETY AT LARGE THROUGH SUPPORTING CROSSGENERATIONAL RELATIONSHIPS ESPECIALLY IN AREAS WHERE THE DEVELOPMENT OF TECHNOLOGY OUTSTRIPS THE ABILITY OF THE EDUCATIONAL SYSTEM TO ADJUST STEPHANIE MARSHALL IT SEEMS THAT WE ARE REALLY DISCUSSING THE ISSUE OF EXCEPTIONAL LEARNING AND HOW WE CAN BEST ENABLE THAT IN YOUNG PEOPLE SOMEONE USED THE PHRASE PRODUCE EXCEPTIONAL LEARNING I REALLY DON'T THINK THAT IS POSSIBLE I DON'T THINK WE TEACH ANYONE ANYTHING I THINK PART OF OUR ROLE IS THE ENABLING OF THE CREATIVE ENTERPRISE PART OF OUR TASK IS TO FACILITATE CONSTRUCTIVE MEANING ON THE PART OF THE LEARNER THAT NOTION OF CONSTRUCTIVE MEANING I THINK IS OUR BIGGEST CHALLENGE THERE IS A WONDERFUL AND THOUGHTFUL PIECE RECENTLY DEVELOPED BY THE AMERICAN PSYCHOLOGICAL ASSOCIATION CALLED LEARNERCENTERED PSYCHOLOGICAL PRINCIPLES WE ARE WORKING WITH IT IN THE ILLINOIS MATHEMATICS AND SCIENCE ACADEMY AS A FRAMEWORK FOR DEVELOPMENT OF LEARNING EXPERIENCES FOR STUDENTS SEVERAL PREMISES DERIVED FROM THE APA PRINCIPLES ARE PARTICULARLY IMPORTANT LEARNING IS AN INDIVIDUAL AND GOALDIRECTED PROCESS IT IS A PROCESS OF CONSTRUCTED MEANING AND THAT MEANING IS CONSTRUCTED FROM BOTH INFORMATION AND EXPERIENCE LEARNERS CONSTRUCT REPRESENTATIONS OF KNOWLEDGE THAT MAKE SENSE TO THEM THEY ASSOCIATE AND CONNECT NEW INFORMATION WITH WHAT THEY ALREADY KNOW AND THEY USE HIGHERORDER THINKING SKILLS TO ENHANCE THEIR CREATIVE AND CRITICAL THOUGHT THE APA PRINCIPLES UNDERSCORE THAT ALL PEOPLE ARE NATURALLY CURIOUS ONE OF THE WAYS TO STIMULATE CURIOSITY CREATIVITY AND HIGHERORDER THINKING IS TO ENSURE THAT LEARNING TASKS ARE CHALLENGING RELEVANT TO THE LEARNER AND NOVEL IN THEIR APPROACH I BELIEVE THE CONTEXT OF ACQUISITION ALWAYS DEFINES THE WAY WE LEARN THINGS AND THAT IS ONE OF THE REASONS THE EDUCATIONAL PROCESS IN OUR COUNTRY NEEDS TO BE TRANSFORMED WE NEED TO MOVE AWAY FROM SCHOOLING TO LEARNING AND MOVE AWAY FROM CLASSROOMS AND SCHOOLS TO THE CREATION OF LEARNING COMMUNITIES LEARNING IS NOT NECESSARILY AN OUTCOME OF TEACHING PROGRESSIONAL LEARNING USUALLY GOES FROM CONCRETE TO ABSTRACT EXPECTATIONS AFFECT PERFORMANCE AND PEOPLE LEARN TO DO WELL ONLY WHAT THEY PRACTICE DOING MR SCHANK STEPHANIE CHILDREN DO INDEED GET TAUGHT THINGS BUT THIS DOESN'T HAPPEN MUCH IN SCHOOL CHILDREN WILL LEARN FROM TEACHERS WHEN THEY WANT TO KNOW SOMETHING WANTING TO KNOW USUALLY RESULTS IN ASKING AND WANTING TO KNOW COMES FROM A PROBLEM THAT A CHILD WAS TRYING TO WORK ON THIS TELLS US SOMETHING ABOUT WHAT IS WRONG WITH SCHOOL CHILDREN ARE TAUGHT WITHOUT REFERENCE TO WHAT THEY THEMSELVES HAVE DECIDED THEY NEED TO KNOW THEY DON'T ASK THE QUESTIONS THEY LEARN TO ANSWER AND MOST IMPORTANT THEY ARE RARELY DOING ANYTHING IN SCHOOL THAT WOULD AROUSE THEIR CURIOSITY AND HENCE THEIR NEED TO KNOW CHILDREN DON'T DO MUCH IN SCHOOL EXCEPT MEMORIZE OF COURSE THERE ARE GOOD SCHOOLS WHERE THIS ISN'T QUITE THE CASE BUT THEY ARE OFTEN SUBVERTED BY THE STANDARDIZED CURRICULA AND TESTS THAT WAIT AT THE END OF EVERY STUDENT'S LIFE IN ANY CASE TO ENCOURAGE GENIUS IN CHILDREN ONE HAS TO LET THEM GO THEIR OWN ROUTE IN THEIR OWN WAY AT THEIR OWN SPEED AND STAND BY READY TO HELP IF ASKED THE CURRENT SCHOOLS CANNOT SUPPORT THIS PARENTS CAN BUT MAY NOT KNOW HOW TO AND COMPUTERS COULD IF ANYONE WAS WILLING TO SPEND THE MONEY TO DEVELOP DECENT SOFTWARE THAT WOULD ALLOW THIS TO HAPPEN MS MARSHALL I'M FASCINATED WITH HOWARD GARDNER'S NEW THINKING AND HIS NEW BOOK THE UNSCHOOLED MIND HOW CHILDREN THINK AND HOW SCHOOLS SHOULD TEACH HE SAYS TWO OF THE BEST STRUCTURES FOR LEARNING ARE MUSEUMS AND APPRENTICESHIPS ONE OF OUR CHALLENGES AS EDUCATIONAL LEADERS ESPECIALLY IN THE DEVELOPMENT OF TALENT IS TO CREATE OPPORTUNITIES FOR THE DEVELOPMENT OF WHAT I'LL CALL LEARNING MUSEUMS AND LEARNING APPRENTICESHIPS IN CLASSROOMS AND IN SCHOOLS I'M A FAN OF HOWARD GARDNER AND SO I ALSO NEED TO GO BACK TO ONE OF HIS SEMINAL WORKS FRAMES OF MIND WITH HIS THEORY OF MULTIPLE INTELLIGENCES HE ARGUES THAT WE POSSESS MANY INTELLIGENCES WHICH HE DEFINES AS ABILITIES TO SOLVE PROBLEMS OR CREATE PRODUCTS THAT ARE VALUABLE WITHIN ONE OR MORE CULTURAL SETTINGS AS INTELLIGENCES HE LISTS LINGUISTICS SPATIAL MUSICAL LOGICAL MATHEMATICAL BODILY KINESTHETIC AND PERSONAL WHAT I THINK IS SO CRITICAL ABOUT THIS CONSTRUCT AND TRULY THIS IS WHAT WE ARE TRYING TO DEVELOP AT THE ILLINOIS MATHEMATICS AND SCIENCE ACADEMY IS THE NOTION THAT EVERY DISCIPLINE IS A LANGUAGE AS YOU KNOW ONE OF THE MOST CRITICAL DEFINITIONS OF GIFTEDNESS IS THE ABILITY TO MANIPULATE INTERNALLY LEARNED SYMBOL SYSTEMS AND I BELIEVE HOWARD'S WORK SPEAKS TO THAT OUR ABILITY TO USE THE REPRESENTATIONS OF MULTIPLESYMBOL SYSTEMS OBVIOUSLY ENHANCES OUR ABILITY TO UNDERSTAND EACH DISCIPLINE AND ITS INTEGRATION AND CONNECTEDNESS WITH OTHER DISCIPLINES IT ENRICHES THE WAY PROBLEMS ARE SOLVED AND ENHANCES OUR CAPACITY TO CREATE LINKAGES OF UNDERSTANDING I DON'T BELIEVE WE SHOULD TEACH EVERY DISCIPLINE AS IF IT WERE AN ARBITRARY DIVISION UNCONNECTED TO ANYTHING ELSE I THINK WE HAVE TO DEMONSTRATE THE APPLICATION AND RELEVANCE AND INTEGRATION OF DISCIPLINES OR I BELIEVE WE WILL CREATE LEARNINGDISABLED YOUNGSTERS WHO DON'T UNDERSTAND THE COMPLEXITIES AND INTERCONNECTIONS AND WHO AREN'T FLUENT ENOUGH TO CHOOSE THE SYMBOL SYSTEMS APPROPRIATE TO SOLVE THE PROBLEM WSJ ROGER SCHANK SUGGESTS THAT SMART COMPUTERS BOLSTERED BY GREAT SOFTWARE OFFER HOPE FOR TEACHING IN WAYS THAT NURTURE CREATIVITY AND GENIUS DOES EVERYBODY ELSE ENDORSE THAT NOTION MS MARSHALL I AGREE WITH ROGER THE COMPUTER CAN SERVE AN ENORMOUSLY POWERFUL ROLE IN THAT LEARNING COMMUNITY THE VERY METAPHORS AND LANGUAGE OF EDUCATIONAL TRANSFORMATION ARE VERY SIMILAR IF NOT IDENTICAL TO THE LANGUAGE OF THE NEW PHYSICSALLIANCES COLLABORATIONS INTERDEPENDENCE SYSTEMIC NETWORKS SELFORGANIZING SYSTEMS INDIVIDUAL CONTROL MR HARRISON AS TEACHERS COMPUTERS ARE GOOD AT SOME THINGS STORAGE AND RETRIEVAL OF INFORMATION FOR EXAMPLE AND KIDS WHO ARE LEARNING FAST FIND THE RANGE AND VARIETY OF INFORMATION AVAILABLE TO BE INTENSELY STIMULATING AND HELPFUL OR IN THE FIELD OF TRAINING COMPUTERS CAN BE EXCELLENT WHERE THE LEARNING TASK TO BE UNDERTAKEN CAN BE MAPPED USUALLY BY A GIFTED TEACHER AND THIS UNDERSTANDING OF THE SUBJECT TO BE STUDIED OR SKILL TO BE ACQUIRED CAN BE ADEQUATELY REFLECTED IN THE PROGRAM THIS CAN BE HIGHLY EFFECTIVE BUT LET'S REMEMBER WHAT EDUCATION IS ABOUT FUNDAMENTALLY IT IS ABOUT LEARNING TO BE HUMAN AND UNTIL COMPUTERS BECOME LITERALLY SUPERHUMAN THEY WILL REMAIN A TOOL ALBEIT AN IMPORTANT ONE IN THE HANDS OF AN EDUCATOR THE LIMITATIONS OF THE TOOLS MUST BE RECOGNIZED COMPUTERS HAVE THE POWER TO ENRICH YES EVEN TRANSFORM THE LEARNING CONTEXT FOR ANYONE PARTICULARLY THOUGH NOT EXCLUSIVELY YOUNG PEOPLE BUT THEY ARE QUITE INADEQUATE AS MENTORS MY COLLEAGUE IS STILL MY BEST TEACHER ESPECIALLY MY MORE EXPERIENCED COLLEAGUE MR SCHANK ONE PROBLEM IN TALKING ABOUT COMPUTERS IS THAT EVERYBODY'S IMAGE OF THEM VARIES SO GREATLY IT IS REALLY NOT IMPORTANT TO TALK ABOUT WHAT COMPUTERS ARE NOW OR WERE YESTERDAY BUT WHAT THEY COULD BE TOMORROW EVERYONE SEEMS TO FEEL THAT HUMANS ARE BETTER TEACHERS BECAUSE THEY ARE WARM AND FUZZY AND CAN UNDERSTAND THE CHILD'S PROBLEM AND DEAL WITH IT IN A HUMAN WAY FORGET ABOUT IT THIS IS NOT A DESCRIPTION OF SCHOOL SCHOOL HAS 30 KIDS AND ONE TEACHER IF YOU ARE LUCKY SCHOOLS EMPLOY LOCKSTEP CURRICULA THAT ALLOW STUDENTS AND TEACHERS LITTLE TIME TO DEVIATE FROM THE OFFICIAL KNOWLEDGE THAT HAS BEEN MANDATED BY THE SCHOOL BOARD AND THE EDUCATIONAL TESTING SERVICE THERE IS NO WAY TO SERIOUSLY INNOVATE IN SCHOOLS BECAUSE SCHOOLS AND SCHOOL BOARDS AND PUBLISHERS AND TESTING AND THE UNIVERSITIES STOP IT AT EVERY TURN WHAT IS WRONG WITH SCHOOL THE PRIMARY PROBLEM IS THE CURRICULUM WE SHOVE MATHEMATICS DOWN THE THROATS OF EVERY CHILD EVERY YEAR HE IS IN SCHOOL WHY I WILL TELL YOU WHY BECAUSE THERE ARE RIGHT ANSWERS IN MATHEMATICS AND OUR OHSOHUMAN SCHOOL BOARDS AND TEACHERS LOVE RIGHT ANSWERS BECAUSE THEY ALLOW FOR NO CONTROVERSY AND PRODUCE NICE PERCENTILE GRADES WHEN WAS THE LAST TIME WE SERIOUSLY REEXAMINED WHAT WE WANT CHILDREN TO KNOW THE BEST WE CAN OFFER IN THIS REGARD SEEMS TO BE ABSURD CULTURAL LITERACY LISTS COMPUTERS OFFER HOPE NOT BECAUSE THEY ARE NOT HUMAN BUT BECAUSE THEY CAN BE ONEONONE TEACHERS AND CAN OFFER THE POSSIBILITY OF RETURNING CONTROL OF LEARNING TO THE CHILD TO ALLOW THE CHILD TO DECIDE WHERE HE WANTS TO GO AND TO ASK WHAT HE WANTS TO ASK AND TO EXPLORE WHAT INTERESTS HIM THIS SIMPLY CANNOT BE DONE IN SCHOOL TODAY COULD IT BE DONE IN SOFTWARE WELL SURE BUT IT IS VERY EXPENSIVE TO DO IT AND EVEN IF IT WERE DONE THERE WOULD BE SOME DIFFICULTY GETTING SCHOOLS TO ACCEPT IT AT MY INSTITUTE WE DO CREATE LEARNBYDOING SOFTWARE WE CREATE NORIGHTANSWERS SOFTWARE IT'S VIDEOINSTRUCTIONONDEMAND FROMTHEWORLD'SEXPERTS ASAPROBLEMISENCOUNTERED TYPE SOFTWARE BUT WE DO IT FOR BUSINESS SCHOOLS MIGHT ACCEPT IT INDEED SOME HAVE BEEN DEMANDING IT IF THERE WERE MONEY TO BUILD IT BUT EDUCATION IS SIMPLY NOT A REAL PRIORITY IN THIS COUNTRY BUT THE ISSUE IS NOT YES OR NO TO COMPUTERS THIS IS LIKE ASKING WHETHER TELEVISIONS ARE ANY GOOD THE QUESTION IS ARE THE PROGRAMS ON THEM WORTHWHILE THE ANSWER MAY WELL BE NO FOR TV AND HAS BEEN NO FOR COMPUTERS BUT IT ISN'T BECAUSE EITHER MEDIUM COULDN'T BE BETTER IN ANY CASE COMPUTERS REPRESENT A WAY OF INSTITUTING CURRICULUM REFORM THIS IS WHAT MUST BE DONE DESPITE THE VARIOUS VESTED INTERESTS I DARE SAY THAT IF CHILDREN DO NOT NOW SAY THEY HATE SCHOOL THIS DOES NOT MEAN THAT THEY WOULD CHOOSE TO BE THERE IF THEY HAD ANY OTHER POSSIBILITY WE MUST CREATE SCHOOLS THAT CHILDREN WANT TO GO TO WSJ THE PEOPLE AT APPLE SEEM TO HAVE HELPED IN CREATING AT LEAST SOME CLASSROOMS THAT CHILDREN WANT TO GO TO MR DWYER WE'RE FINDING THAT CONCERN OVER DISCIPLINE AND ATTENDANCE IN OUR APPLE CLASSROOMS OF TOMORROW ACOT PROGRAM BECOMES NEGLIGIBLE FOR THREE YEARS A HIGHSCHOOL ACOT SENT 90 TO 100 OF THEIR GRADUATING CLASSES ON TO COLLEGE THE REST OF THE HIGH SCHOOL SENT ABOUT 15 THE SAME HIGH SCHOOL HAS A DROPOUT RATE OF 30 THE ACOT DROPOUT RATE IN THAT SCHOOL IS 0 WE'VE ALSO NOTICED THAT TEACHERS BEGIN PUBLISHING THEIR OWN ARTICLES JOIN PROFESSIONAL ORGANIZATIONS MAKE PRESENTATIONS I COULD GO ON AND ON WITH SUCH ANECDOTES THERE HAVE BEEN SO MANY THAT WE THINK SOMETHING IMPORTANT IS GOING ON IN OUR CLASSROOMS CAREFUL LONGITUDINAL WORK OVER FOUR YEARS IS SUGGESTING THAT OUR HIGHSCHOOL STUDENTS ARE DEVELOPING SOME COMPETENCIES THAT ARE AT THE LEAST UNUSUAL FOR PUBLICSCHOOL STUDENTS WE SEE MANY OF THE SAME SKILLS EVOLVING WITH EVEN OUR YOUNGEST STUDENTS AT OUR ELEMENTARY SITES THESE COMPETENCIES INCLUDE STUDENTS CHOOSE TO WORK AS COLLABORATIVE TEAMS THEY BUILD THEIR TEAMS BASED ON SKILL SETS THAT THEY NEED TO ATTACK PROBLEMS THE TEAMS CHANGE AS THE PROBLEMS CHANGE STUDENTS UNDERSTAND PROBLEMS AS SYSTEMS AND CAN BREAK THEM INTO COMPONENT PARTS WHILE UNDERSTANDING THAT ALL PARTS AFFECT OTHER PARTS STUDENTS HAVE A DIFFERENT RELATIONSHIP TO TEXT THAN MOST THEY SEE TEXT AS LIMITED TO LINEAR EXPRESSION THEY CHOOSE OTHER MEANS OF COMMUNICATION TO EXPLAIN COMPLEX AND/OR DYNAMIC PROCESSES INCLUDING ANIMATION VIDEO GRAPHICS ETC THEY UNDERSTAND THE IMPORTANCE OF KNOWLEDGE OF AUDIENCE WHEN THEY GO ABOUT PLANNING PROJECTS AND PRESENTATIONS THEY VIEW TECHNOLOGIES AS TOOLS SOME MORE APPROPRIATE THAN OTHERS FOR DIFFERENT KINDS OF PROBLEMS THEY KNOW WHEN NOT TO USE TECHNOLOGY THEY HAVE A MORE POSITIVE ORIENTATION TO THEIR FUTURE THAN THEIR PEERS AT THEIR SCHOOLS WSJ KENJI DOES JAPAN HAVE SCHOOLS THAT CHILDREN WANT TO ATTEND HOW DOES THE JAPANESE EDUCATION SYSTEM DEAL WITH RELUCTANT AND UNDERCHALLENGED LEARNERS MR MURO IT IS NOT EASY TO ANSWER THE QUESTION ABOUT HOW JAPAN DEALS WITH THE UNDERCHALLENGED LEARNER BECAUSE THAT QUESTION ITSELF COMES FROM THE AMERICAN SITUATION OR AN AMERICAN IDEA IN THE JAPANESE SCHOOLS THE TEACHER AND THE PARENTS FORCE THE KIDS TO STUDY HARD SO THAT THEY CAN ENTER A GOOD SCHOOL AND GET A JOB IN A GOOD COMPANY WHICH MEANS A GOOD OR POWERFUL FAMILY ONCE THEY GET INTO THE COMPANY THEY EXPECT AND ARE EXPECTED TO STAY FOR LIFE EVEN THOUGH THE SYSTEM OF LIFETIME EMPLOYMENT IS CHANGING THESE DAYS IT IS STILL MOSTLY TRUE AND THIS IS STILL THE IDEOLOGY OF THE EDUCATIONAL SYSTEM SO THE KIDS LEARN TWO MAIN THINGS IN THE SCHOOL FIRST HOW TO BE PATIENT AND BE HARMONIOUS IN A GROUP AND SECOND HOW TO BE COMPETITIVE SO THEY CAN GET GOOD GRADES TO GO TO A GOOD SCHOOL IF SOMEONE IS AN UNDERCHALLANGED LEARNER BECAUSE THEIR WAY OF LEARNING DOESN'T FIT THE STANDARD WAY ALL IT LOOKS LIKE TO THE TEACHERS AND TO THE PARENTS IS THAT THE STUDENT WILL NOT HAVE A VERY GOOD FUTURE AND THAT'S IT IT IS A PROBLEM FOR THE STUDENTS BECAUSE THEY MAY FEEL BAD AND IT IS A PROBLEM FOR THE PARENTS BECAUSE THEY MIGHT HAVE HAD HIGHER EXPECTATIONS BUT IT IS NOT A PROBLEM FOR THE LARGER SOCIETY BECAUSE EVEN THE POOR STUDENT WILL HAVE A PLACE AND BE ABLE TO EARN A LIVING ALSO THE UNDERCHALLENGED LEARNER BECAUSE HE OR SHE IS BEING TAUGHT SO MUCH HOW TO BE POLITE DOESN'T DO WHAT YOU CALL ACTING OUT OR CAUSE A SOCIAL PROBLEM SO MUCH IN SCHOOL HERE IN THE US YOU HAVE THE SAYING THE SQUEAKY WHEEL GETS THE GREASE IN JAPAN WE HAVE THE SAYING THE NAIL THAT STICKS UP THE HIGHEST GETS HIT DOWN THE HARDEST I AM SIX FEET TALL AND WHEN I AM IN JAPAN I OFTEN HIT MY HEAD BOTH FIGURATIVELY AND LITERALLY WSJ WHAT SUBJECTS OR SKILLS DOES THE JAPANESE SCHOOL SYSTEM EMPHASIZE FOR YOUNG CHILDREN MR MURO THE PURPOSE OF JAPANESE EDUCATION ESPECIALLY IN THE PRIMARY AND JUNIOR HIGH SCHOOLS IN TERMS OF CONTENT IS FIRST AND FOREMOST TO TEACH THE READING AND WRITING OF THE JAPANESE LANGUAGE IN PRIMARY SCHOOL THE KIDS SHOULD MEMORIZE 1000 CHARACTERS AND BE ABLE TO COMBINE AND PRONOUNCE THEM EACH ONE HAS A FEW DIFFERENT WAYS TO BE PRONOUNCED TO MEMORIZE THE CHARACTERS THE YOUNG CHILDREN REPEAT LARGE RHYTHMIC ARM MOVEMENTS OVER AND OVER IT HELPS THEIR BODIES REMEMBER THE STROKES NEEDED TO DRAW THESE CHARACTERS THIS BODY MEMORIZATION IS VERY DIFFERENT FROM LETTER RECOGNITION OF THE WESTERN ALPHABET AND I THINK THIS MODE OF LEARNING MAY HELP DEVELOP A DIFFERENT KIND OF INTELLIGNCE IN JAPANESE CHILDREN BEFORE STUDENTS CAN GRADUATE FROM HIGH SCHOOL THEY MUST LEARN 2000 MORE CHARACTERS SO THE MINIMUM REQUIREMENT TO ENTER COLLEGE IS 3000 CHARACTERS THE TEACHING OF THE JAPANESE LANGUAGE ITSELF WITH THIS NEED FOR CHARACTER MEMORIZATION NECESSITATES A KIND OF STRICT DISCIPLINE AND STRUCTURE IN THE SCHOOL IT MAY NOT BE SO CONSCIOUS BUT FUNDAMENTAL TO THE JAPANESE DEFINITION OF WHO IS JAPANESE IS WHETHER YOU CAN READ AND WRITE THE JAPANESE LANGUAGE AND LIKE IT OR NOT THE JAPANESE SCHOOLS ACCOMPLISH THIS DAUNTING TASK TEACHING MATH IS THE SECOND CONTENT TASK OF THE JAPANESE SCHOOL IT IS A VERY ORDERED RIGID STANDARDIZED CURRICULUM TAUGHT ALL OVER THE COUNTRY BECAUSE THERE IS ONLY ONE NATIONAL EDUCATIONAL DEPARTMENT THAT CONTROLS EVERYTHING HISTORY TEACHING IS MOSTLY DATE MEMORIZATION FOR PASSING EXAMS SCIENCE INVOLVES LOTS OF HANDSON EXPERIMENTS IN ALL THE FIELDS IN THE US PHYSICAL EDUCATION IS CONSIDERED A KIND OF PLAY BUT PHYSICAL EDUCATION IN JAPAN IS AGAIN USED TO TEACH GROUP HARMONY THE JAPANESE REALLY LIKE MARCHING AND MARCHING IS SEEN AS A WAY TO TEACH HOW TO BE PART OF A GROUP PHYSICAL EDUCATION IS THOUGHT OF NOT ONLY AS PHYSICAL TRAINING BUT AS A KIND OF SPIRITUAL TRAINING AS WELL IN MUSIC EDUCATION ESPECIALLY IN THE PRIMARY SCHOOLS THE IMPORTANT THING IS TO SING OLD JAPANESE SONGS ALL TOGETHER WITH THE EMPHASIS ON THE ALL TOGETHER TO SING TOGETHER IN HARMONY IS AGAIN A WAY TO FOSTER GROUP BELONGING IT IS CONSIDERED VERY BAD FORM TO SING TOO LOUD AND STAND OUT AS YOU CAN SEE THERE IS HARDLY ANY IDEA THAT THE SCHOOL CURRICULUM SHOULD FIND NURTURE DEVELOP OR ENCOURAGE INDIVIDUAL CREATIVITY OR GENIUS THOUGH THERE IS SOME TALK THESE DAYS ABOUT NEEDING TO NURTURE INDIVIDUAL CREATIVITY MOST OF IT IS JUST TALK THE JAPANESE CORPORATIONS MAY SAY THEY WANT MORE INDIVIDUAL CREATIVITY BUT INDIVIDUAL CREATIVITY IS BASED ON INDIVIDUAL DESIRE AND THEY DON'T LIKE THAT THIS ALL MAY LOOK QUITE AWFUL TO WESTERN EYES BUT IT IS NONETHELESS A MANIFESTATION OF A DEEPER JAPANESE PHILOSOPHY LEARNING IS SEEN AS SOMETHING ONE DOES TO ATTAIN ENLIGHTENMENT AND ENLIGHTENMENT IS NOT SUPPOSED TO COME EASILY THE THINKING IS SOMETHING LIKE ONLY IF YOU HAVE A HARD TIME DOING SOMETHING WILL YOUR EFFORTS BEAR FRUIT SO WHILE THE ADULTS IN JAPAN ARE VERY MUCH AWARE OF HOW DIFFICULT THEIR SCHOOL SYSTEM IS THEY ALSO SEE IT AS A WAY OF TEACHING A DEEPER MEANING ABOUT LIFE PAIN AND HAVING A HARD TIME ARE A PART OF LIFE AND IT IS A GOOD EXPERIENCE TO LEARN HOW TO HANDLE IT AND THEY DEFINITELY CARE FOR AND ABOUT THE STUDENTS AND SUPPORT THEM WHILE THEY ARE HAVING THEIR HARD TIME MS MARSHALL I FIND THE NOTION OF HARMONY IMPORTANT ESPECIALLY IN LIGHT OF WHAT KENJI HAS TOLD US ABOUT JAPANESE EDUCATION THE MISSION OF THE ILLINOIS MATHEMATICS AND SCIENCE ACADEMY IS RELEVANT WE RECEIVE STUDENTS WHO COME INTO OUR INSTITUTION HAVING COMPLETED THE EQUIVALENT OF THE NINTH GRADE WHO HAVE CLOSE TO 1200 COMPOSITE SAT SCORES AS AN EIGHTH OR NINTH GRADER THEY REPRESENT ACCORDING TO THE EDUCATIONAL TESTING SERVICE THE UPPER 1 OF THE GIFTED POPULATION IN THE COUNTRY THE MISSION OF OUR INSTITUTION IS RATHER STRAIGHTFORWARD IT IS TO DEVELOP LEADERS WHO KNOW THE JOY OF DISCOVERING AND FORGING INTERCONNECTIONS AMONG MATHEMATICS SCIENCE THE ARTS AND THE HUMANITIES AND WHO BY EXAMPLE AND BY INSTRUCTION INSPIRE OTHERS TO LIVE IN HARMONY WITH THEMSELVES OTHER HUMAN BEINGS AND THE PHYSICAL WORLD HERE IS WHERE THE HARMONY APPLIES ALTHOUGH THE EXPECTATION IS THAT OUR COMMUNITY WILL FOCUS EXCLUSIVELY ON ACCELERATION IN MATHEMATICS AND SCIENCE WE HAVE TAKEN A DIFFERENT PATH PERHAPS IT IS A PATH MORE ALIGNED WITH THE NEW SCIENTIFIC PARADIGM TO SAY THAT ALTHOUGH WE ARE TEACHING ADVANCED COURSES IN ALL AREAS WE ARE TRYING TO MAKE OUR STUDENTS MULTILINGUAL AND THAT MULTILINGUALITY IS REALLY BEING ABLE TO SPEAK THE LANGUAGE OF MATHEMATICS AND SCIENCE TO SPEAK THE LANGUAGE OF ENGLISH AND SOCIAL SCIENCE TO SPEAK THE LANGUAGE OF FOREIGN LANGUAGES TO SPEAK THE LANGUAGE OF ART AND MUSIC PROBLEMBASED LEARNING WHICH IS USED AS AN ALTERNATIVE TRACK IN MANY MEDICAL SCHOOLS IN OUR COUNTRY IS APPRENTICESHIP FOR REAL PROBLEMSOLVING INSTEAD OF TIDY CASE STUDIES STUDENTS FIND UNDEFINED PROBLEMS INCOMPLETE INFORMATION AND UNASKED QUESTIONS THE SITUATIONS STUDENTS ARE CONFRONTED WITH DEMAND PROBLEMSOLVING DEFINING AND DETAILING CREATING THE HYPOTHESIS SEARCHING FOR AND SCANNING DATA REFINING THE HYPOTHESIS OBVIOUSLY IN THIS PROCESS STUDENTS CROSS INTO SEVERAL DOMAINS OF KNOWLEDGE THAT RELATE TO THE PROBLEM CONSTANTLY LOOKING FOR CONNECTIONS THEY BUILD SIGNIFICANT KNOWLEDGE BASES THROUGH THEIR INCREASINGLY SELFDIRECTED STUDY STRUCTURED AROUND THE TOPICS OF THEIR INQUIRY THEIR PROBLEM DAVID DWYER MANAGER OF APPLE COMPUTER'S LEARNING TECHNOLOGIES GROUP IN CUPERTINO CALIF IS RESPONSIBLE FOR THE APPLE CLASSROOMS OF TOMORROW PROGRAM AND SEVERAL RELATED PROJECTS LEE FELSENSTEIN A SENIOR RESEARCH ENGINEER FOR INTERVAL RESEARCH CORP IN PALO ALTO CALIF DESIGNED SOME OF THE FIRST PORTABLE COMPUTERS HE NOW WORKS ON DEVELOPING INFORMATION TECHNOLOGIES FOR USE BEGINNING IN THE NEXT DECADE CAMERON HARRISON A PHYSICIST AND EDUCATOR WHO LECTURES WIDELY IN EUROPE IS CHIEF EXECUTIVE OF THE SCOTTISH CONSULTATIVE COUNCIL ON THE CURRICULUM IN DUNDEE SCOTLAND STEPHANIE PACE MARSHALL IS EXECUTIVE DIRECTOR OF THE ILLINOIS MATHEMATICS & SCIENCE ACADEMY A PUBLIC HIGH SCHOOL IN AURORA ATTENDED BY EXCEPTIONALLY GIFTED STUDENTS FROM THROUGHOUT THE STATE KENJI MURO BORN AND EDUCATED IN JAPAN IS THE AUTHOR OF SEVERAL BOOKS ABOUT UNDERSTANDING CULTURAL DIFFERENCES HIS CONSULTING FIRM WESTEAST INTERFACE BASED IN TOKYO AND IN EMERYVILLE CALIF ADVISES SUCH JAPANESE COMPANIES AS PANASONIC HITACHI CANON AND NEC ON ISSUES OF EDUCATION TECHNOLOGY AND CULTURE ROGER C SCHANK IS DIRECTOR OF NORTHWESTERN UNIVERSITY'S INSTITUTE FOR THE LEARNING SCIENCES WITH FUNDING FROM ARTHUR ANDERSEN CONSULTING THE INSTITUTE DEVELOPS ADVANCED INSTRUCTIONAL SOFTWARE FOR SCHOOLS AND CORPORATIONS 9305240140 930524 MEXICO'S GDP RISES 24 MEXICO CITY MEXICO'S GROSS DOMESTIC PRODUCT AFTER ADJUSTING FOR INFLATION GREW 24 IN THE FIRST QUARTER OF THIS YEAR FROM THE YEARBEFORE PERIOD THE TREASURY DEPARTMENT SAID GROSS DOMESTIC PRODUCT IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION THE ECONOMY SHOWED SUSTAINED GROWTH AND WAS CHARACTERIZED BY RECEDING INFLATION AND RISING PRODUCTIVITY THE REPORT SAID 9305240139 930524 WHO'S NEWS SCECORP SCECORP ROSEMEAD CALIF ALAN J FOHRER SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS HOLDING COMPANY WAS NAMED TO THE NEW POST OF VICE CHAIRMAN OF THE COMPANY'S MISSION ENERGY CO SUBSIDIARY HE ALSO WAS NAMED INTERIM CHIEF EXECUTIVE OFFICER OF THE UNIT SUCCEEDING JAMES S PIGNATELLI 49 YEARS OLD WHO REMAINS PRESIDENT AND IN THE SHORT TERM WILL CONCENTRATE ON THE DEVELOPMENT OF INTERNATIONAL PROJECTS MR FOHRER 42 CONTINUES IN HIS CORPORATE POSTS MISSION ENERGY BASED IN IRVINE CALIF IS A NONUTILITY ELECTRIC POWER PRODUCER 9305240138 930524 TECHNOLOGY ADOBE SYSTEMS FORMS ALLIANCE MOUNTAIN VIEW CALIF ADOBE SYSTEMS INC SAID IT DELL COMPUTER CORP AND SUPERMAC TECHNOLOGY INC FORMED AN ALLIANCE TO PROMOTE AND MARKET PRODUCTS FOR THE COLOR DESKTOP COMPUTER PUBLISHING MARKET ADOBE A SOFTWARE COMPANY DELL AN AUSTIN TEXAS COMPUTER MAKER AND SUPERMAC A SUNNYVALE CALIF COMPUTER COMPONENT MAKER WILL WORK TOGETHER ON ADVERTISING TRADE SHOWS AND SEMINARS 9305240137 930524 MOST AMTRAK PRICES TO RISE WASHINGTON MOST AMTRAK PASSENGERS WILL HAVE TO PAY ABOUT 3 MORE TO RIDE THE TRAIN THE INCREASE IS THE FIRST SINCE OCTOBER 1991 AND OFFICIALS BLAMED RISING COSTS AMTRAK CALLED THE BOOST AN ACROSSTHEBOARD RISE BUT IT DOESN'T AFFECT ALL ROUTES EQUALLY WHILE FARES IN THE WASHINGTONNEW YORKBOSTON NORTHEAST CORRIDOR WILL GO UP 3 MANY SHORT TRIPS WITHIN CALIFORNIA SUCH AS THE LOS ANGELESSAN DIEGO COMMUTE WON'T RISE AT ALL 9305240136 930524 WHO'S NEWS JAMESWAY CORP JAMESWAY CORP SECAUCUS NJ JOSEPH ETTORE WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER RETURNING TO THE DISCOUNT DEPARTMENT STORE CHAIN AFTER A FOURYEAR ABSENCE MR ETTORE 54 YEARS OLD RESIGNED AS CHAIRMAN AND CHIEF OPERATING OFFICER OF STUARTS DEPARTMENT STORES TO TAKE THE JAMESWAY POSITION STUARTS BASED IN FRANKLIN MASS OPERATES DISCOUNT DEPARTMENT STORES IN NEW ENGLAND MR ETTORE WILL REMAIN ON THE STUARTS BOARD OF DIRECTORS AT JAMESWAY HE SUCCEEDS PETER HOLLIS 50 WHO RESIGNED APRIL 23 MR ETTORE REPORTS TO ARLIE LAZARUS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND WILL BE NOMINATED TO THE BOARD OF DIRECTORS AT THE JUNE ANNUAL MEETING JAMESWAY SAID MR ETTORE WAS PREVIOUSLY EMPLOYED BY JAMESWAY FROM 1982 TO 1989 LAST SERVING AS SENIOR VICE PRESIDENT AND GENERAL MERCHANDISE MANAGER OF SOFT LINES 9305240135 930524 INTERNATIONAL PAPER RECYCLING PURCHASE NY INTERNATIONAL PAPER CO SAID IT PLANS A MAJOR RECYCLING INITIATIVE FOR MILK AND JUICE CARTONS THROUGH MUNICIPAL WASTE COLLECTION PROGRAMS AND WILL MAKE COPIER AND PRINTING PAPERS FROM THE RECYCLED MATERIAL THE PAPER COMPANY SAID IT WILL INSTALL A NEW PROCESSING PLANT FOR THE RECYCLED CARTONS EMPLOYING PROPRIETARY TECHNOLOGY AT ONE OF ITS MILLS IN THE NORTHEAST THE COMPANY SAID IT IS HOLDING DISCUSSIONS WITH OFFICIALS IN SEVERAL MAJOR METROPOLITAN AREAS ABOUT ADDING CARTONS TO THEIR CURBSIDE COLLECTION PROGRAMS IT WILL BEGIN ACCEPTING DELIVERIES LATER THIS YEAR BEFORE THE RECYCLING FACILITY IS IN PLACE 9305240134 930524 WHO'S NEWS MCCORMICK NAMES ALBRECHT NORDHOFF LAWLESS TO POSITIONS SPARKS MD MCCORMICK & CO SAID IT'S REORGANIZING ITS INTERNATIONAL GROUP INTO THREE MAJOR MARKET ZONES THE AMERICAS EUROPE AND ASIA/PACIFIC THE MARKETER OF SPICES AND FLAVORINGS SAID JAMES J ALBRECHT 60 YEARS OLD WAS NAMED GROUP VICE PRESIDENT ASIA/PACIFIC THE GROUP INCLUDES MCCORMICK UNITS IN ASIA AUSTRALIA AND THE PHILIPPINES ALL EXPORT OPERATIONS AND ASIAN LICENSING AGREEMENTS ROBERT J LAWLESS 46 WAS NAMED GROUP VICE PRESIDENT EUROPE WHICH INCLUDES THE UK GERMANY SWITZERLAND FINLAND ISRAEL SPAIN AND TURKEY CARROLL D NORDHOFF 47 WAS NAMED EXECUTIVE VICE PRESIDENT THE AMERICAS HE WILL BE ASSISTED BY HAROLD J HANDLEY 57 WHO WAS NAMED SENIOR VICE PRESIDENT RESPONSIBLE FOR THE MCCORMICK/SCHILLING DIVISION MCCORMICK CANADA INC AND MOJAVE FOODS CORP MESSRS ALBRECHT LAWLESS AND NORDHOFF WILL REPORT TO H EUGENE BLATTMAN 57 PRESIDENT AND CHIEF OPERATING OFFICER 9305240133 930524 THEY ARE LITERALMINDED PEOPLE WHEN IT COMES TO TRIAL BALLOONS BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL THEY FLOAT DOWN OMINOUSLY OUT OF THE ETHER DOZENS OF THEM YEAR AFTER YEAR AND ALIGHT IN CENTRAL JAPAN IT'S MAY AND THE BALLOONS ARE BACK NO ONE KNOWS WHO IS RESPONSIBLE FOR THE BIG CLEARPLASTIC BALLOONS MANY OF WHICH TURN UP DURING THIS MONTH EACH YEAR MYSTERY BALLOONS LAND IN WIDE AREA OF HONSHU READ ONE HEADLINE IN JAPAN'S PRESS LAST WEEK BUT THERE ARE SOME STRONG EDUCATED GUESSES ABOUT THEIR ORIGIN EARLIER THIS MONTH AT LEAST 20 BALLOONS LANDED IN HONSHU AND SOME BORE KOREAN SCRIPT SOME OVER THE YEARS HAVE ALSO ARRIVED BEARING HARANGUING POLITICAL LEAFLETS JAPAN MOST PEOPLE FIGURE IS CAUGHT IN A CROSSFIRE OF PROPAGANDA BETWEEN NORTH AND SOUTH KOREA A VICTIM OF WIND CURRENTS A MINOR INCONVENIENCE WERE IT NOT THAT SOME OF THE BALLOONS EXPLODE ON SCENIC LAKE BIWA TWO ANGLERS WERE HOSPITALIZED LAST WEEK AFTER A BALLOON THEY PICKED UP EXPLODED AND BURNED THEIR HANDS AND FACES LAST YEAR FOUR OTHERS WERE SIMILARLY INJURED BUT JAPAN WHICH HAS HAD TENSE RELATIONS WITH KOREA SINCE ITS BRUTAL OCCUPATION OF THE NATION IS QUICK TO PLAY DOWN THE EVENTS A SPOKESMAN FOR JAPAN'S NATIONAL POLICE AGENCY WOULDN'T SAY WHERE THE BALLOONS MIGHT HAVE COME FROM IN SEOUL THE NATIONAL SECURITY PLANNING AGENCY THE SPIES WOULDN'T EVEN ACKNOWLEDGE THAT PROPAGANDA BALLOONS EXIST BUT GET A DRIFT OF THIS LEAFLET IN ONE OF THE BALLOONS THAT ARRIVED THIS MONTH PRESUMABLY FROM SOUTH KOREA TRADE BETWEEN SOUTH KOREA AND CHINA HAS RAPIDLY INCREASED IT BLUSTERS WHY DOES NORTH KOREA'S GREAT LEADER IGNORE AN OPENING POLICY AND COURT ECONOMIC DISASTER MORE THAN JUST HOT AIR GOES ALOFT THE SOUTH IN A SPITEFUL SHOW OF EXTRAVAGANCE SOMETIMES LOADS CONSUMER GOODS ABOARD TO SHOW NORTHERNERS WHAT THEY'RE MISSING THE TRADELECTURE BALLOON FOR INSTANCE CARRIED A BOX OF CONDOMS THREE FIRSTAID KITS AND A BAG OF PEANUTS THE POORER NORTH THOUGH TENDS TO CUT CORNERS PYONGYANG SAYS A US MILITARY OFFICIAL IN SEOUL INFLATES ITS CRAFT NOT WITH INERT HELIUM BUT WITH CHEAPER AND EXPLOSIVE HYDROGEN WHICH RAISES A QUESTION MIGHT THE BALLOONS BE AIMED AT JAPAN IN RETALIATION FOR THE WARTIME OCCUPATION NO CONCLUDES THE US OFFICIAL IN SEOUL THAT'S NOT WHAT THE KOREANS HAVE IN MIND FOR THE JAPANESE 9305240132 930524 INTERNATIONAL JAPAN'S COURT FINES EIGHT FIRMS TOKYO KYODO EIGHT JAPANESE COMPANIES THAT MAKE PLASTIC FOOD WRAPPING WERE FINED BETWEEN 54225 AND 72300 AND 15 OF THEIR SENIOR EXECUTIVES RECEIVED SUSPENDED PRISON SENTENCES AT TOKYO HIGH COURT FRIDAY AFTER BEING CONVICTED OF OPERATING A PRICEFIXING CARTEL THE EIGHT COMPANIES ARE DENKI KAGAKU KOGYO KK GUNZE LTD HITACHI BORDEN CHEMICAL PRODUCTS INC A JOINT VENTURE BETWEEN BORDEN INC OF THE US AND HITACHI CHEMICAL CO MITSUI TOATSU CHEMICALS INC MITSUBISHI PLASTICS INDUSTRIES LTD NIPPON CARBIDE INDUSTRIES CO RIKEN VINYL INDUSTRY CO AND SHINETSU POLYMER CO THE FAIR TRADE COMMISSION LAUNCHED AN INVESTIGATION OF THE COMPANIES IN APRIL 1991 9305240131 930524 NATIONAL FUEL GAS TESTS WELL BUFFALO NY NATIONAL FUEL GAS CO SAID ITS SENECA RESOURCES CORP UNIT COMPLETED THE DRILLING OF ITS MCFARLANEMOORE NO 1 ONSHORE WELL IN BRAZOS COUNTY TEXAS THE COMPANY SAID THE WELL TEST PRODUCED 8234 THOUSAND CUBIC FEET OF NATURAL GAS 350 BARRELS OF OIL AND 495 BARRELS OF WATER A DAY FROM A 3200FOOT HORIZONTAL SECTION SENECA OWNS AN 85 WORKING INTEREST IN THE WELL IT DECLINED TO IDENTIFY THE PARTY HOLDING THE REMAINING 15 SENECA IS INVOLVED IN THE EXPLORATION OF OIL AND NATURAL GAS IN THE GULF COAST AREA AND IN THE SOUTHWESTERN AND WESTERN US NATIONAL FUEL GAS IS A NATURAL GAS AND OIL CONCERN 9305240130 930524 EXXON AFFILIATE SIGNS PACT IRVING TEXAS EXXON CORP SAID ITS NIGERIAN AFFILIATE SIGNED A PRODUCTIONSHARING AGREEMENT WITH NIGERIA'S NATIONAL OIL COMPANY THAT GIVES EXXON THE RIGHT TO EXPLORE ON A LARGE TRACT OFF THE COAST THE AGREEMENT GIVES EXXON THE RIGHT TO EXPLORE ON BLOCK 209 A 500000ACRE BLOCK THAT LIES 47 MILES FROM SHORE EXXON WILL BE THE OPERATOR EXXON EXPECTS TO OPEN AN OFFICE IN NIGERIA TO MANAGE ITS OPERATIONS ON BLOCK 209 AND TO PURSUE OTHER EXPLORATION OPPORTUNITIES 9305240129 930524 CITIZENS FINANCIAL BUYS MOST OF THE ASSETS OF NEW ENGLAND BANK PROVIDENCE RI CITIZENS FINANCIAL GROUP INC A UNIT OF ROYAL BANK OF SCOTLAND PLC ACQUIRED MOST OF THE ASSETS OF NEW ENGLAND SAVINGS BANK NEW LONDON CONN AFTER IT WAS CLOSED BY CONNECTICUT REGULATORS CITIZENS ACQUIRED THE ASSETS FROM THE FEDERAL DEPOSIT INSURANCE CORPORATION WHICH TOOK THEM OVER AFTER CONNECTICUT REGULATORS ACTED CITIZENS ASSUMED 740 MILLION OF ASSETS AND 685 MILLION OF DEPOSITS FROM THE FDIC IN EXCHANGE FOR TAKING OVER AN UNDISCLOSED AMOUNT OF NONPERFORMING ASSETS THAT THE AGENCY WOULD NORMALLY BE LEFT WITH CITIZENS WILL THEN SELL SOME OF THOSE SOURED ASSETS BUNDLED WITH PERFORMING LOANS FROM THE FAILED BANK TO LEHMAN BROTHERS THE TRADING AND INVESTMENT BANKING DIVISION OF SHEARSON LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO TERMS OF THAT SALE WHICH INCLUDES A TOTAL OF 171 MILLION IN COMMERCIAL AND COMMERCIAL REALESTATE LOANS WEREN'T DISCLOSED CITIZENS SAID IT RETAINS A 72 MILLION PORTFOLIO OF PERFORMING COMMERCIAL REALESTATE AND SMALLBUSINESS LOANS AS WELL THE FDIC WILL ASSUME 130 MILLION IN FORECLOSED PROPERTY FROM NEW ENGLAND SAVINGS CITIZENS HAD 46 BILLION IN ASSETS AT DEC 31 SINCE THEN IT AGREED TO ACQUIRE BOSTON FIVE BANCORP FOR 95 MILLION AFTER ADDING THAT BANK AND NEW ENGLAND SAVINGS CITIZENS SAID IT WILL HAVE ABOUT 71 BILLION IN ASSETS 9305240128 930524 COLUMBIA HOSPITAL TO DELAY ACQUISITION AMID FTC CHALLENGE WASHINGTON THE FEDERAL TRADE COMMISSION SAID COLUMBIA HOSPITAL CORP AGREED NOT TO ACQUIRE A FLORIDA HOSPITAL UNTIL THE AGENCY'S ANTITRUST CHALLENGE IS RESOLVED THE FTC SAID THE PLANNED ACQUISITION INCLUDED MEDICAL CENTER HOSPITAL IN PUNTA GORDA FLA AND RELATED ASSETS IN THE AREA OWNED BY ADVENTIST HEALTH SYSTEM/SUNBELT HEALTH CARE CORP THE FTC HAS ESTIMATED THE VALUE OF THE HOSPITAL AND ASSETS AT A TOTAL OF ABOUT 40 MILLION THE NEW AGREEMENT WHICH THE FTC SAID NEEDS THE APPROVAL OF THE US DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA FOLLOWS A COURTORDERED PRELIMINARY INJUNCTION BARRING THE ACQUISITION EARLIER THIS MONTH THE FTC HAS BEEN SEEKING TO BLOCK COLUMBIA'S PURCHASE OF THE FACILITY SINCE FEBRUARY THE FTC SAID IT SOUGHT THE INJUNCTION TO KEEP THE HOSPITAL ASSETS INTACT UNTIL AN ADMINISTRATIVE TRIAL COULD BE HELD ON ITS ALLEGATIONS THAT COLUMBIA'S PLAN TO ACQUIRE MEDICAL CENTER HOSPITAL WOULD HAVE NUMEROUS ANTICOMPETITIVE EFFECTS THE FTC HAS ALLEGED IN AN ADMINISTRATIVE COMPLAINT THAT THE ACQUISITION WOULD ELIMINATE COMPETITION BETWEEN MEDICAL CENTER HOSPITAL AND FAWCETT ANOTHER HOSPITAL IN THE AREA ALREADY OWNED BY COLUMBIA WHICH IS BASED IN FORT WORTH TEXAS AN ADMINISTRATIVE TRIAL IN THE CASE IS SCHEDULED TO BEGIN OCT 5 ONCE APPROVED BY THE COURT THE NEW AGREEMENT WILL REMAIN IN EFFECT UNTIL THE CONCLUSION OF THAT TRIAL AND ANY APPEALS THE FTC SAID AS PART OF THE NEW AGREEMENT COLUMBIA AND ADVENTIST WAIVED THE RIGHT TO APPEAL THE ISSUANCE OF THE INJUNCTION 9305240127 930524 HONG KONG INFLATION EASES HONG KONG HONG KONG INFLATION MODERATED TO A YEARONYEAR RATE OF 77 IN APRIL COMPARED WITH THE 78 RATE RECORDED IN MARCH THE GOVERNMENT SAID HONG KONG FINANCIAL SECRETARY HAMISH MACLEOD WELCOMED THE THIRD STRAIGHT DROP IN THE MAIN INFLATION MEASURE THE CONSUMER PRICE INDEX A AND SAID THE GOVERNMENT'S PREDICTION THAT INFLATION WOULD STAY UNDER 10 THIS YEAR REMAINED ON TARGET WITH THE INCREASE IN THE CPI A' AVERAGING AT 85 FOR THE FIRST FOUR MONTHS THIS YEAR IT DOES SUGGEST THAT OUR FORECAST OF A SINGLEDIGIT INFLATION FOR THE YEAR AS A WHOLE IS REALISTIC MR MACLEOD SAID IN A STATEMENT 9305240126 930524 WHO'S NEWS RICHARD L KAUFFMAN LEAVES FIRST BOSTON NEW YORK RICHARD L KAUFFMAN LEFT FIRST BOSTON CORP QUITTING AS HEAD OF EQUITY CAPITAL MARKETS TO JOIN MORGAN STANLEY GROUP INC AS HEAD OF PRODUCT MANAGEMENT IN EQUITY CAPITAL MARKETS FIRST BOSTON SAID A SUCCESSOR TO MR KAUFFMAN AGE 38 HASN'T BEEN CHOSEN THE INVESTMENT BANK HAS HAD SEVERAL DEFECTIONS BY SENIOR BANKERS OVER THE FIRM'S LEADERSHIP AND PAY THEY PERCEIVE AS BELOW THE LEVEL PAID BY OTHER FIRMS SOME RIVAL BANKERS PREDICT ADDITIONAL DEPARTURES FROM FIRST BOSTON SINCE THE FIRM MADE A DEFERREDBONUS PAYMENT ABOUT 10 DAYS AGO AMOUNTING TO ONETHIRD OF BANKERS' 1992 BONUSES THE PAY HAD BEEN DEFERRED PENDING A SALE OF ASSETS FROM A MONEYLOSING MERCHANTBANKING INVESTMENT PORTFOLIO 9305240125 930524 BUSINESS BRIEF MAY DEPARTMENT STORES CO FIRM TO SPEND 46 BILLION TO OPEN ADDITIONAL OUTLETS MAY DEPARTMENT STORES CO ST LOUIS SAID IT WILL SPEND 46 BILLION OVER FIVE YEARS TO OPEN 100 MORE DEPARTMENT STORES AND 1200 MORE PAYLESS SHOESOURCE STORES AS WELL AS TO EXPAND OR RENOVATE ABOUT 60 EXISTING STORES THE NATION'S LARGEST DEPARTMENT STORE OPERATOR IS WELLPOSITIONED FOR EXPANSION AFTER TAKING SEVERAL STEPS TO STREAMLINE OPERATIONS AS OF JAN 31 MAY HAD CONSOLIDATED SIX DEPARTMENT STORE DIVISIONS INTO THREE NOW CALLED ROBINSONSMAY KAUFMAN'S AND FILENE'S THE CAPITAL SPENDING PLAN WOULD BOOST MAY'S DEPARTMENT STORE DIVISION TO MORE THAN 400 STORES AND ITS FASTGROWING PAYLESS DIVISION TO ALMOST 4800 STORES THE NEW STORES WILL ADD 22 MILLION SQUARE FEET OF RETAIL SPACE UP 36 FROM 61 MILLION SQUARE FEET CURRENTLY ABOUT 550 MILLION OF THE SPENDING PLAN WILL GO TO REMODEL AND EXPAND EXISTING STORES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY MAY SHARES CLOSED AT 7525 UP 875 CENTS 9305240124 930524 TECHNOLOGY A SPECIAL REPORT SURVEY THE WIZARDS A LOOK AT THE HIGHTECH DREAM TEAM AS CHOSEN BY A SURVEY OF THEIR COLLEAGUES BY LAURENCE HOOPER OK SO IT DOESN'T TAKE A GENIUS TO FIGURE THIS ONE OUT BUT AT LEAST OUR SURVEY OF HIGHTECH LUMINARIES FROM AROUND THE WORLD WAS ACCURATE IN CONFIRMING THE CONVENTIONAL WISDOM THE RESPONDENTS' OVERWHELMING CHOICE FOR THE PEER THEY MOST REGARD AS A GENIUS BILL GATES THE BILLIONAIRE WHO IS OFTEN SEEN AS AMERICA'S UR NERD MR GATES IS AN OBVIOUS CHOICE EVEN THOUGH BY MANY ACCOUNTS HE'S NEITHER AN ESPECIALLY ORIGINAL THINKER NOR A DOWNANDDIRTY TECHNICAL WIZARD WHAT HE IS HOWEVER IS SO UNUSUAL IN THE TECHNOLOGY INDUSTRY THAT IT PUTS HIM IN A DIFFERENT CLASS FROM THE THREE TECHNICAL GENIUSES AND ONE VISIONARY WHO FOLLOWED HIM IN OUR POLL AMONG THEM THESE FOUR ALSORANS JOHN COCKE SEYMOUR CRAY ALAN KAY AND JACK KILBY HAVE SHAPED AN ENTIRE INDUSTRY PROVOKING ITS FIRST STIRRINGS AND ARTICULATING ITS MOST FUTURISTIC DREAMS BUT MR GATES IS SOMETHING ELSE AGAIN PUT SIMPLY HE IS A ONCEINAGENERATION BUSINESS GENIUS A NOVELTY ANYWHERE BUT ESPECIALLY SO IN THE TECHNOCRACY HIS SURE GRASP OF COMPUTING TRENDS COMBINED WITH HARDBALL TACTICS CLEVER NEGOTIATING AND EVERGROWING CLOUT NOW ALLOWS HIM TO SET A SELFFULFILLING AGENDA FOR THE WORLD'S TECHNOLOGY EFFORTS AS A GROUP OUR FIVE TOP VOTEGETTERS SHARE A FEW THINGS IN ADDITION TO THEIR INDIVIDUALISM THEY ARE ALL WHITE AND MALE A REFLECTION OF THE HIGHTECH INDUSTRY TO DATE THEY ALSO ARE AMERICANS THIS IS PARTLY DUE TO THE FACT THAT AMERICAN RESPONDENTS OUTNUMBERED JAPANESE AND EUROPEAN PARTICIPANTS IN THE SURVEY BUT IT ALSO STEMS FROM THE FACT THAT EXCEPT IN CONSUMER ELECTRONICS HIGHTECH INNOVATION HAS GENERALLY BEEN THE DOMAIN OF US RESEARCHERS MOREOVER EVEN IF THE POLL HAD BEEN CONDUCTED SOLELY AMONG NONAMERICANS MR GATES STILL WOULD HAVE COME OUT ON TOP HERE ARE THUMBNAIL SKETCHES OF THE FIVE MEMBERS OF OUR HIGHTECH DREAM TEAM AS ELECTED BY A RATHER UNSCIENTIFIC SAMPLE OF THEIR PEERS AS WELL AS THE NAMES OF SOME OTHER VOTEGETTERS TECHNOLOGY HAS NEVER SEEN A FIGURE AS DOMINANT AS BILL GATES CIRCA 1993 AMONG HIS COMPETITORS ALMOST EVERYONE THESE DAYS AS HIS AMBITIONS MULTIPLY HE INSPIRES AN INTRIGUING MIX OF AWE AND IRRITATION ONE PROMINENT EXECUTIVE WHO ANSWERED OUR SURVEY UNHESITATINGLY IDENTIFIED MR GATES AS A GENIUS THEN MADE US SWEAR WE WOULD NEVER TELL ANYONE HE SAID SO OTHER RESPONDENTS SAID THEY WOULD NEVER LET A GENIUS RUN THEIR COMPANY UNLESS IT WAS MR GATES EITHER WAY THIS MAN LOOMS LARGE IN JUST ABOUT EVERYONE'S MIND UNQUESTIONABLY HIS DECISIONS ARE CHANGING THE COURSE OF TECHNOLOGY CURIOUSLY MR GATES'S AURA OF INVINCIBILITY IS A RECENT PHENOMENON MAYBE 3 1/2 YEARS OLD NOW EVEN THOUGH HIS RISE IS MOST OFTEN PORTRAYED AS A SMOOTH CLIMB FROM HIS PRECOCIOUS FORAYS INTO PROGRAMMING AS A HIGHSCHOOL STUDENT THE HARVARD DROPOUT STARTED HIS CAREER IN THE MID1970S BY TEAMING WITH FRIEND PAUL ALLEN TO WRITE SOME NIFTY SOFTWARE FOR AN EARLY PERSONAL COMPUTER THAT FEAT WAS IMPRESSIVE BUT PROBABLY SLIGHTLY SHORT OF GENIUS A FEW YEARS AFTER HE AND MR ALLEN HAD FOUNDED MICROSOFT AS ONE OF THE FIRST PCSOFTWARE COMPANIES MR GATES STRUCK A DEAL WITH INTERNATIONAL BUSINESS MACHINES CORP TO SUPPLY A KEY PROGRAM CALLED MSDOS FOR IBM'S NEW PERSONAL COMPUTER THROUGH A COMBINATION OF LUCK AND DETERMINATION HE ESTABLISHED MSDOS AS THE ESSENTIAL INGREDIENT FOR EVERY CLONE COMPANY THAT WISHED TO PROSPER BY COPYING IBM'S PC STANDARD BY NOW HIS BUSINESS INSTINCTS WERE BECOMING OBVIOUS BESIDES FOLLOWING THE IBMCLONE TRACK HE PLUNGED INTO SOFTWARE FOR APPLE COMPUTER INC'S NEW EASYTOUSE MACINTOSH COMPUTER BUT EVEN THOUGH MICROSOFT WAS A BIG SUCCESS MR GATES WASN'T ALLPOWERFUL AND FEW HAILED HIM AS A GENIUS THE CHANGE HAPPENED IN 1989 WHEN HE MADE HIS BIG PLAY UNTIL THEN MICROSOFT HAD SEEMED DEPENDENT ON PARTNER IBM BUT MR GATES SQUABBLED ARTFULLY WITH IBM WHILE PUSHING HARD ON A SOFTWARE PROJECT CALLED WINDOWS ESSENTIALLY A WAY TO MAKE A PC BEHAVE LIKE A MACINTOSH THAT CHALLENGED A SIMILAR IBMMICROSOFT JOINT PROJECT BY 1990 WINDOWS HAD BECOME AN ENORMOUS HIT WITHOUT ANY SUPPORT FROM IBM AND BIG BLUE FACED A SICKENING NEW TRUTH BRIEFLY DEFINED BY HARDWARE MAKERS THE PC MARKET WAS FLOWERING INTO A SOFTWAREDRIVEN BUSINESS BY REALIZING THIS EARLY AND CHOOSING THE PERFECT MOMENT TO PRESS HIS ADVANTAGE MR GATES HAD GRABBED CONTROL OF THE INDUSTRY SINCE THEN THE GATES LEGEND HAS GROWN APACE THE FASTDRIVING ULTRACOMPETITIVE INTOLERANT DEVIOUS SEATROCKING BACHELOR BILLIONAIRE BY NOW MR GATES NEED ONLY HINT THAT HE'S INTERESTED IN ENTERING A NEW SOFTWARE AREA TO SEND A POTENTIAL RIVAL REELING HIS STATEMENTS ABOUT THE FUTURE LIKE WINDOWS ITSELF THOUGH OFTEN DERIVATIVE ARE ALWAYS COMPELLING ENOUGH AND WELLPUBLICIZED ENOUGH TO INSPIRE MYRIAD FOLLOWERS DISTRAUGHT COMPETITORS LOOK FORLORNLY TO THE ONLY TWO FORCES THEY CAN IMAGINE WILL STOP THIS GENIUS IN HIS TRACKS GOVERNMENT REGULATORS AND HIS IMPENDING MARRIAGE BECAUSE CLEARLY MERE SUCCESS WON'T SPOIL BILL GATES FOR HIS PART MR GATES IS A FIRM BELIEVER IN THE IDEA THAT CERTAIN INDIVIDUALS PLAY HUGE ROLES IN MOVING TECHNOLOGY FORWARD PRODUCING DISCONTINUITIES AS HE PUTS IT BUT HE QUARRELS WITH ANY METHODICAL LISTING OF GENIUSES EVEN IF HE COMES OUT ON TOP THE NOTION THAT YOU CAN ISOLATE THE TOP OF THE TOP IT GETS VERY SUBJECTIVE VERY FAST HE SAYS HE PROFESSES PERSONAL ADMIRATION FOR MANY NOTABLE MATHEMATICIANS AND IN COMPUTERDOM SINGLES OUT THE CONTIBUTIONS OF BUTLER LAMPSON A FORMER SCIENTIST AT XEROX CORP'S PALO ALTO RESEARCH CENTER THE FEELING IS MUTUAL ONE OF THE VOTES FOR MR GATES IN OUR SURVEY CAME FROM MR LAMPSON WHO NOW WORKS AT DIGITAL EQUIPMENT CORP MR GATES SAYS HE DOESN'T THINK OF HIMSELF AS A GENIUS THOUGH HE'S FLATTERED TO BE NAMED IN THE COMPANY OF PEOPLE HE ADMIRES HIS TRUE LEGACY HE HOPES WILL BE AS A PROD FOR OTHERS TO RECOGNIZE THE FACT THAT COMPUTING REVOLVES AROUND SOFTWARE SEYMOUR CRAY ONCE WAS AN UNDISPUTED ALMOST ARCHETYPICAL HIGHTECH GENIUS A DEEP THINKER AND DRIVEN WORKER WHOSE INNOVATIONS IN SEMICONDUCTOR DESIGN GAVE BIRTH TO A WHOLE NEW CLASS OF MACHINE THE SUPERCOMPUTER NOWADAYS HE'S A MORE CONTROVERSIAL FIGURE WHILE OUR SURVEY'S RESPONDENTS STILL PEG HIM AS A TOP GENIUS SEVERAL PARTICIPANTS WERE LESS GENEROUS SINGLING HIM OUT AS SOMEONE WHO DIDN'T FIT THEIR DEFINITION OF THE TERM MR CRAY DOESN'T DESERVE SUCH AMBIVALENCE ALTHOUGH HIS MOST RECENT EFFORT TO BUILD THE WORLD'S FASTEST COMPUTER HAS RUN INTO SERIOUS TROUBLE POSSIBLY ENDING HIS CAREER ON A DOWN NOTE HIS TRACK RECORD REMAINS ONE OF TECHNOLOGY'S FINEST A SHY ECCENTRIC WHO HATES BUREAUCRACY MR CRAY USED SMALL TEAMS OF ENGINEERS TO BUILD SUCCESSIVE GENERATIONS OF SUPERCOMPUTERS THAT SET NEW WORLD SPEED RECORDS STARTING IN THE 1950S HIS ADVANCES SPAWNED NEW CAPABILITIES SUCH AS COMPUTERAIDED WEATHER FORECASTING AIRPLANE DESIGN AND A HOST OF MILITARY APPLICATIONS THE LIFELONG TINKERER HAS MANY ADMIRERS FOR CONCEPTUAL BREAKTHROUGHS SUCH AS NEW COOLING SYSTEMS FOR HIS SUPERFAST SUPERHOT CIRCUITS AND TECHIES LOVE THE NEAT AESTHETIC TOUCHES THAT ARE HIS HALLMARK SUCH AS A TRANSPARENT TOP ON HIS LATEST MACHINE THAT REVEALS TANGLES OF WIRES SWAYING IN A CURRENT OF COOLANT MR CRAY'S SINGLEMINDEDNESS HAS ALWAYS BEEN HIS GREATEST STRENGTH LEADING HIM FOR INSTANCE TO FORM CRAY RESEARCH INC SO HE COULD BUILD THE HISTORIC CRAY 1 SUPERCOMPUTER UNVEILED IN 1976 LATELY CRITICS HAVE BEEN SAYING IT WILL ALSO BE HIS DOWNFALL AS HE POOHPOOHS THE INCREASINGLY IMPORTANT ROLE PLAYED BY MASSIVELY PARALLEL SUPERCOMPUTERS SUCH MACHINES PLATOON MANY CHEAP MICROCHIPS TO WORK TOGETHER ON A PROBLEM FORSAKING THE CUSTOMIZED CUTTINGEDGE CIRCUITS FAVORED BY MR CRAY FOR HIS CRAY 3 SUPERCOMPUTER SUCH DEBATES WILL PROBABLY RAGE FOR SOME TIME BUT EVEN IF HE LOSES MR CRAY WILL HOLD ON TO HIS GENIUS STATUS ALAN KAY IS THAT OLDFASHIONED TYPE OF GENIUS A VISIONARY HIS ROLE IS THIS SIMPLE HE DESCRIBES THE FUTURE AND IT HAPPENS OR AT LEAST IT HAPPENED WITH PERSONAL COMPUTING THE TOUSLED MUSTACHIOED MR KAYA POLYMATHIC JAZZ MUSICIANWAS A SEMINAL FIGURE DURING THE EARLY 1970S AT XEROX CORP'S FAMED PALO ALTO RESEARCH CENTER WHERE HE HELPED ORIGINATE MANY OF THE CONCEPTS THAT GUIDE TODAY'S PERSONALCOMPUTER INDUSTRY BY NOW THE LIST OF PARC'S ACHIEVEMENTS IS FAMILIAR THE WINDOWS AND FRIENDLY ONSCREEN ICONS THAT HELP DEMYSTIFY COMPUTING A NEW EFFICIENT SORT OF COMPUTER NETWORK THE LASER PRINTER HIGHRESOLUTION COMPUTER SCREENS THAT CAN DISPLAY GRAPHICS WELL OBJECTORIENTED SOFTWARE AND SO ON EVERYONE IN PC CIRCLES HAS CRIBBED IDEAS FROM THE KAYERA PARC MAJOR COMPANIES SUCH AS APPLE AND MICROSOFT HAVE GROWN FAT ON THE PRACTICE MR KAY IS ESPECIALLY FAMOUS IN TECH CIRCLES FOR DESCRIBING TWO DECADES AGO A RADICAL VISION HE CALLED THE DYNABOOK A PORTABLE PC THAT WOULD RETRIEVE AND DISPLAY WHATEVER DATA ARE MOST USEFUL TO ITS USER NO MATTER WHAT KIND OF DATA AND WHERE THEY ARE STORED THAT SOUNDS SUSPICIOUSLY LIKE BILL GATES'S INFORMATION AT YOUR FINGERTIPS CONCEPT NOT TO MENTION APPLE'S MUCHHYPED PERSONAL DIGITAL ASSISTANT TECHNOLOGY IT ISN'T A SURPRISE THUS TO FIND MR KAY IS AN IMPORTANT PART OF THE BRAIN TRUST AT APPLE CHAIRMAN JOHN SCULLEY REGULARLY USES HIS IDEAS MR KAY'S CURRENT INTERESTS LIE MOSTLY IN ARTIFICIAL INTELLIGENCE FIGURING OUT THE FUTURE ROLE OF AGENTS PIECES OF SOFTWARE THAT WILL ACT LIKE WELLTRAINED SERVANTS ANTICIPATING A COMPUTER USER'S NEEDS AND FULFILLING THEM WITHOUT BEING ASKED HIS APPROACH IS TYPICALLY ECLECTIC FINANCED BY A SPECIAL APPLE PROJECT HE CONCOCTED HE HAS SPENT YEARS IN A LOS ANGELES SCHOOL STUDYING HOW CHILDREN LEARN HOPING HE CAN TRANSFER HIS INSIGHTS TO THE COMPUTER REALM IT WOULD BE TEMPTING TO SAY THE MODERN COMPUTER WOULDN'T EXIST WITHOUT JACK KILBY BUT IT ISN'T QUITE TRUE INDEED MR KILBY IS NEARLY AS FAMOUS FOR A KNOCKDOWN PATENT FIGHT AS HE IS FOR HIS GREAT INVENTION THE INTEGRATED CIRCUIT OR SILICON CHIP ONLY A FEW MONTHS AFTER HE CAME UP WITH THE HISTORIC IDEA OF CARVING VARIOUS ELECTRONIC COMPONENTS INTO THE SAME SLIVER OF SILICON RATHER THAN SOLDERING TOGETHER TINY TRANSISTORS INTO WIRED CIRCUITS ROBERT NOYCE INDEPENDENTLY CAME UP WITH A BETTER VERSION OF THE SAME IDEA MESSRS KILBY AND NOYCE TOOK THEIR DISPUTE ALL THE WAY TO THE SUPREME COURT EVENTUALLY COMING TO A TRUCE THAT ESSENTIALLY CALLED FOR THE MEN TO TAKE JOINT CREDIT STILL MR KILBY'S INFLUENCE ON ELECTRONICS IS HUGE HIS ORIGINAL INSIGHT PAVED THE WAY FOR LATER PROGRESS SUCH AS THE INVENTION OF THE MICROPROCESSOR AND THE STILLINCREASING NUMBER OF TRANSISTORS THAT FIT ON A CHIP FORCES THAT HAVE COMBINED TO MAKE POSSIBLE EVERY COMPUTING ADVANCE IN RECENT YEARS AND MR KILBY WENT ON TO CONTRIBUTE TO OTHER IMPORTANT INVENTIONS INCLUDING THE HANDHELD CALCULATOR AND THERMAL PRINTER THE QUIET KANSAN HAS SPENT MOST OF HIS DAYS AT TEXAS INSTRUMENTS FOR WHICH HE STILL WORKS AS A CONSULTANT THE COMPANY CONTINUES TO MILK HIS PATENTS FOR A STEADY STREAM OF PROFIT MR KILBY SAYS HIS SELECTION AS A GENIUS IS CERTAINLY VERY FLATTERING BUT I'M NOT SURE IT'S DESERVED HE NOTES THAT HE HASN'T DONE ANYTHING EARTHSHAKING SINCE HE INVENTED THE INTEGRATED CIRCUIT AND SAYS HIS DEFINITION OF GENIUS HAS TO DO WITH A LONG STEADY SEQUENCE OF MAJOR IDEAS HIS OWN NOMINEE FOR THE HONOR EDWIN LAND FOUNDER OF POLAROID CORP ALL MODESTY ASIDE HOWEVER MR KILBY ADMITS THAT HE GETS A GREAT FEELING OF SATISFACTION FROM WATCHING THE PROGRESS THAT HAS RESULTED FROM HIS ORIGINAL IDEA DESPITE ITS WORLDFAMOUS RESEARCH FACILITIES IBM ISN'T FAMOUS FOR PRODUCING GENIUSES PERHAPS BECAUSE AT BOTTOM IT'S A GROUP CULTURE NOT A HAVEN FOR INDIVIDUALISTS HOW HEARTENING THEN TO HEAR OF A TRUE ECCENTRIC WANDERING BIG BLUE'S HALLS FIRING OFF AT LEAST ONE BRILLIANT IDEA IN EVERY SENTENCE JOHN COCKE IS MAYBE THE GREATEST GENIUS I'VE EVER KNOWN SAYS JOEL BIRNBAUM A FORMER COLLEAGUE WHO NOW HEADS RESEARCH AND DEVELOPMENT FOR HEWLETTPACKARD CO HE HAS A BRAIN DIFFERENT THAN ANYTHING I EVER SAW COMPUTER DESIGNER DR COCKE ISN'T VERY WELLKNOWN OUTSIDE IBM BUT THE COMPANY HAS ENOUGH ALUMNI THAT HE'S CITED BY SEVERAL PARTICIPANTS IN OUR SURVEY AND FOR GOOD REASON AMONG OTHER ACHIEVEMENTS HE'S WIDELY RECOGNIZED AS THE INVENTOR OF A NEW APPROACH TO CHIP DESIGN KNOWN AS RISC FOR REDUCEDINSTRUCTIONSET COMPUTING BASICALLY DR COCKE REALIZED IN THE MID1970S THAT COMPUTERS COULD GO FASTER IF THEIR MICROCHIPS DID LOTS OF SIMPLE THINGS QUICKLY RATHER THAN DOING A FEW COMPLEX THINGS MORE SLOWLY THIS PRINCIPLE UNDERLIES THE SUCCESS OF SUN MICROSYSTEMS INC AND OTHER MAKERS OF SPEEDY WORKSTATION COMPUTERS UNFORTUNATELY WHILE IBM NOW HAS ITS OWN POWERFUL RISC CHIPS THE COMPANY LARGELY IGNORED DR COCKE'S ADVANCES FOR MORE THAN A DECADE ONLY RECENTLY HAS THE COMPANY STARTED TOUTING HIS SEMINAL WORK RECENTLY IT EVEN MENTIONED HIM IN A NEWSPAPER AD ALL THIS WON'T MATTER MUCH TO DR COCKE FOR WHOM VANITY ISN'T A MAJOR VICE AT LEAST TO JUDGE BY HIS PERPETUALLY DISHEVELED GARB HE BARELY HAD A CLOSET RECALLS DR BIRNBAUM THIS MAN COULD LOOK MESSY IN A PERFECTLY TAILORED SUIT PAUL ALLEN CHAIRMAN ASYMETRIX CORP MICHAEL DELL CHAIRMAN DELL COMPUTER CORP ANDREW GROVE PRESIDENT INTEL CORP ANTONY HOARE PROFESSOR OXFORD UNIVERISTY STEVEN JOBS CHAIRMAN NEXT COMPUTER INC WILLIAM JOY VICE PRESIDENT SUN MICROSYSTEMS INC MITCH KAPOR CHAIRMAN ON TECHNOLOGY INC DAVID LIDDLE PRESIDENT INTERVAL RESEARCH CORP AKIRA TONOMURA SCIENTIST HITACHI LTD 9305240123 930524 FINANCING BUSINESS FIRST REPUBLIC BANCORP FIRST REPUBLIC BANCORP SAN FRANCISCO SAID IT HAS MADE A PUBLIC OFFERING OF 12 MILLION AGGREGATE PRINCIPAL AMOUNT OF 8 1/2 SUBORDINATED DEBENTURES DUE 2008 FIRST REPUBLIC SAID IT PLANS TO USE 107 MILLION OF THE NET PROCEEDS TO REDEEM ALL OF ITS 11 SENIOR SUBORDINATED DEBENTURES OUTSTANDING DUE FEB 1 2000 9305240122 930524 LIBERTY MEDIA'S TENDER OFFER DENVER LIBERTY MEDIA CORP AS EXPECTED SAID IT COMPLETED ITS TENDER OFFER TO BUY 1629 MILLION COMMON SHARES OF HOME SHOPPING NETWORK INC FOR 114 MILLION INCREASING ITS EQUITY STAKE IN THE COMPANY TO 415 AND ITS VOTING POWER TO 71 LIBERTY WHICH CURRENTLY HOLDS A 23 EQUITY INTEREST AND 65 VOTING STAKE IN HOME SHOPPING SAID 23266306 SHARES WERE TENDERED BEFORE THE EXPIRATION OF THE OFFER BECAUSE THE OFFER WAS OVERSUBSCRIBED THE COMPANY SAID IT WILL ACQUIRE NO MORE THAN 70 OF SHARES OFFERED BY ANY ONE SHAREHOLDER WITH ADJUSTMENTS TO AVOID PURCHASES OF FRACTIONAL SHARES 9305240121 930524 KMART DIVISION TO SELL 14 STORES TO SAM'S CLUB WAREHOUSE CLUB SHAKEOUT HELPS WALMART UNIT IN TOUGH DALLAS MARKET BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL THE SHAKEOUT IN THE RETAIL WAREHOUSE CLUB INDUSTRY INTENSIFIED AS KMART CORP'S AILING PACE MEMBERSHIP WAREHOUSE DIVISION AGREED TO SELL 14 STORES TO RIVAL SAM'S CLUB A UNIT OF WALMART STORES INC TERMS WEREN'T DISCLOSED KMART SAID THE STORES INCLUDE FIVE CLUBS IN CHICAGO FOUR IN DALLAS THREE IN KANSAS CITY MO AND ONE EACH IN ST LOUIS AND TOLEDO OHIO THE TROY MICH RETAILER SAID IT ALSO WILL CLOSE ITS TWO REMAINING PACE WAREHOUSE STORES IN DALLAS AND ONE IN ST LOUIS EFFECTIVELY CEDING THOSE MARKETS TO SAM'S CLUB THE INDUSTRY LEADER PACE CURRENTLY HAS 123 OUTLETS THE AGREEMENT COMES AT A TIME WHEN THE WAREHOUSE CLUB INDUSTRY IS FACING FLAT OR SLUMPING SALES AFTER YEARS OF GROWING RAPIDLY BY BUILDING LOTS OF NOFRILLS STORES THAT SELL IN BULK TO DUESPAYING MEMBERS SUCH CHAINS HAVE BEEN HOBBLED RECENTLY BY INCREASED MARKET SATURATION A SLUGGISH ECONOMY AND COMPETITION FROM OTHER DISCOUNT RETAILERS STILL ANALYSTS GREETED THE NEWS AS FAVORABLE FOR BOTH COMPANIES IT SHOWS KMART IS WILLING TO SHED CERTAIN STORES AND MARKETPLACES WHERE ITS PARTICIPATION IS MARGINAL SAID JANET MANGANO AN ANALYST FOR BURNHAM SECURITIES ADDING AND IT MAKES A BIG DIFFERENCE FOR SAM'S CLUB'S MARKET SHARE IN DALLAS WHICH IS AN IMPORTANT MARKET FOR THEM IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY WALMART CLOSED AT 27375 OFF 1125 AND KMART CLOSED AT 22875 OFF 375 CENTS KMART WHICH ONLY DAYS AGO REPORTED AN 80 DROP IN FIRSTQUARTER PROFIT SAW SALES AT ITS PACE STORES OPEN AT LEAST A YEAR SLUMP BY NEARLY 6 IN THE QUARTER BRUCE QUINNELL THE COMPANY'S CHIEF FINANCIAL OFFICER SAID THE SALE OF THE 14 STORES WAS A GOOD OPPORTUNITY TO CUT OUR LOSSES IN LOCATIONS THAT WEREN'T DOING AS WELL AS THEY SHOULD BUT MR QUINNELL ADDED THAT PACE WILL CONTINUE PREVIOUSLY ANNOUNCED PLANS TO OPEN AS MANY AS EIGHT MORE STORES THIS YEAR AND ANOTHER 12 TO 15 NEXT YEAR FOR WALMART THE SALE NEARLY CLEARS THE FIELD FOR SAM'S CLUB IN THE TOUGH DALLAS RETAIL MARKET WHERE AFTER THE ACQUISITION IT WILL HAVE 11 WAREHOUSE STORES TO ONE FOR THE REMAINING COMPETITOR SAN DIEGOBASED PRICE CO'S PRICE CLUB WALMART BENTONVILLE ARK SAID IT WILL KEEP OPEN ALL 14 OF THE STORES IT IS BUYING AND EXPECTS TO RETAIN ALL CURRENT EMPLOYEES THE ACQUISITION WON'T AFFECT THE COMPANY'S PLAN TO OPEN 65 MORE SAM'S CLUBS THIS FISCAL YEAR A SPOKESMAN SAID WALMART SAID IT EXPECTS TO COMPLETE THE PURCHASE SUBJECT TO CLEARANCE OF FEDERAL ANTITRUST PROVISIONS WITHIN A MONTH THE WAREHOUSE STORES WILL REMAIN OPEN UNDER THE PACE NAME UNTIL THE SALE BECOMES FINAL THE COMPANIES SAID 9305240120 930524 DIVIDEND NEWS REYNOLDS METALS CO REYNOLDS METALS CO CUT ITS DIVIDEND 44 AND FORECAST A LOSS FOR THE YEAR A FURTHER INDICATION THAT THE ALUMINUM INDUSTRY'S SLUMP WILL BE AN EXTENDED ONE THE NEW QUARTERLY RATE IS 25 CENTS A SHARE DOWN FROM 45 CENTS A REDUCTION IN THE DIVIDEND HAD BEEN EXPECTED SINCE REYNOLDS POSTED A WORSETHANEXPECTED FIRSTQUARTER LOSS REYNOLDS' SECONDQUARTER RESULTS HAVE NOT IMPROVED AS MUCH AS WE HAD EXPECTED OVER THE FIRST QUARTER THE RICHMOND VA COMPANY SAID MANY ALUMINUM PRODUCERS HAVE BEEN IN THE RED BECAUSE OF AN OVERSUPPLY OF THE METAL WHICH HAS TRIMMED WORLDWIDE ALUMINUM PRICES TO MODERNDAY LOWS REYNOLDS SAID IT IS STILL OPTIMISTIC ABOUT THE LONGTERM PROSPECTS AND SAID IT WILL LOOK TO INCREASE THE DIVIDEND AS SOON AS IMPROVED CONDITIONS WARRANT THE REDUCED DIVIDEND IS PAYABLE JULY 1 TO STOCK OF RECORD JUNE 4 9305240119 930524 WHO'S NEWS PRUDENTIAL'S DOWNEY RESIGNS AS CHIEF OF BROKERAGE FIRM'S MUTUAL FUND UNIT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MICHAEL J DOWNEY CHAIRMAN AND CHIEF EXECUTIVE OF PRUDENTIAL SECURITIES INC'S HUGE MUTUAL FUND UNIT AND A NEW MEMBER OF PRUDENTIAL'S OPERATING COMMITTEE ABRUPTLY QUIT HIS POSTS THE UNEXPECTED RESIGNATION OF THE 49YEAROLD MR DOWNEY WHO HAS HEADED PRUDENTIAL MUTUAL FUND MANAGEMENT CO SINCE 1987 IS A BLOW TO THE BIG BROKERAGE FIRM SINCE MR DOWNEY TOOK OVER THE UNIT'S ASSETS UNDER MANAGEMENT HAVE DOUBLED TO 46 BILLION MAKING IT THE NATION'S 10THLARGEST MUTUAL FUND COMPANY MR DOWNEY'S OPERATIONS HAVE CONTRIBUTED ONETHIRD OR MORE OF PRUDENTIAL'S ANNUAL NET INCOME IN RECENT YEARS PEOPLE FAMILIAR WITH THE FIRM SAID IN A STATEMENT THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT SAID MR DOWNEY RESIGNED TO PURSUE OTHER INTERESTS BUT WILL REMAIN A CONSULTANT TO THE FIRM PRUDENTIAL DIDN'T NAME A SUCCESSOR MR DOWNEY SAID IN AN INTERVIEW THAT THE MOVE WAS A VOLUNTARY DECISION ON MY PART HE SAID HE HAS HAD DISCUSSIONS OVER THE PAST YEAR AND A HALF ABOUT WHEN AND IF HE WOULD RESIGN BUT MADE THE DECISION LAST WEEKEND AFTER HIS 25TH ANNIVERSARY WITH PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM PEOPLE FAMILIAR WITH THE FIRM SAID MR DOWNEY HAD SIMMERING DISAGREEMENTS WITH HARDWICK SIMMONS PRUDENTIAL SECURITIES' PRESIDENT AND CHIEF EXECUTIVE THAT HELPED PROMPT HIS MOVE BUT MR DOWNEY BRUSHED ASIDE SUCH SUGGESTIONS WE'VE HAD MINOR DISAGREEMENTS MR DOWNEY SAID OF HIS RELATIONSHIP WITH MR SIMMONS BUT IN GENERAL WICK HAS BEEN VERY SUPPORTIVE OF THE DIRECTION OF OUR MUTUAL FUND BUSINESS MR DOWNEY WAS A MEMBER OF PRUDENTIAL SECURITIES' BOARD ONLY TWO MONTHS AGO HE WAS NAMED TO THE FIRM'S SEVENMEMBER OPERATING COMMITTEE WHICH SETS THE DAYTODAY STRATEGY OF THE FIRM MR DOWNEY SAID HE HASN'T DECIDED WHETHER HE WILL JOIN ANOTHER SECURITIES FIRM I'M NOT PRECLUDING ANY OPTIONS AT THIS STAGE MR DOWNEY SAID PEOPLE FAMILIAR WITH THE FIRM SAID THERE AREN'T MANY STRONG CONTENDERS FROM WITHIN THE MUTUAL FUND GROUP TO SUCCEED MR DOWNEY A SUCCESSOR IS LIKELY TO EVENTUALLY BE PICKED FROM PRUDENTIAL'S BROKERAGE OPERATIONS OR AN OUTSIDE MUTUAL FUND COMPANY FOR HIS PART MR DOWNEY SAID PRUDENTIAL'S MUTUAL FUND OPERATION INCLUDES AN OUTSTANDING GROUP OF PEOPLE THOUGH THERE IS NO CLEAR SUCCESSOR WHOEVER SUCCEEDS MR DOWNEY COULD SOON HAVE ADDITIONAL DUTIES THERE ARE DISCUSSIONS UNDER WAY TO HAVE PRUDENTIAL SECURITIES' PORTFOLIO MANAGEMENT GROUP REPORT TO THE MUTUAL FUND UNIT PEOPLE FAMILIAR WITH THE FIRM SAID CURRENTLY THE PORTFOLIO MANAGEMENT OPERATIONS REPORT DIRECTLY TO PRUDENTIAL INSURANCE PRUDENTIAL AND OTHER BROKERAGE FIRMS INCREASINGLY HAVE BEEN DEPENDING ON THE RECURRING FEES FROM MUTUAL FUNDS TO SMOOTH OUT BUMPS IN THEIR EARNINGS MR DOWNEY'S MOVE IS THE SECOND SUDDEN DEPARTURE OF A MUTUAL FUND CHIEF AT A MAJOR BROKERAGE FIRM IN RECENT MONTHS JEROME H MILLER CHIEF OF THE ASSET MANAGEMENT GROUP AT AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS INC UNIT ABRUPTLY QUIT HIS POST IN DECEMBER 9305240118 930524 TECHNOLOGY & ENVIRONMENT MANAGED CARE SPELLS SUSPICION CONFUSION FOR SOME CONSUMERS MINNEAPOLIS GROUP INTERVIEWS UNCOVER DISTRUST OF THE ROLE PLAYED BY FINANCIAL MOTIVES BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL MANY CONSUMERS EITHER DISTRUST OR DON'T UNDERSTAND BASIC COMPONENTS OF MANAGEDCARE PROGRAMS THAT ARE EXPECTED TO UNDERPIN THE CLINTON ADMINISTRATION'S PLAN FOR REVAMPING US HEALTH CARE THAT'S ONE FINDING FROM A REPORT BY A COALITION OF MINNEAPOLIS EMPLOYERS WHO ARE SEEKING WAYS TO ENCOURAGE EMPLOYEES TO BECOME BETTER CONSUMERS OF HEALTH CARE THE REPORT BASED ON A SERIES OF FOCUSGROUP INTERVIEWS WITH 180 EMPLOYEES DEPENDENTS AND DOCTORS IN MINNEAPOLIS AND ST PAUL ISN'T A SCIENTIFIC STUDY BUT THE RESULTS REFLECT GROWING CONCERN AMONG EMPLOYERS AND POLICY MAKERS THAT HEALTHOVERHAUL EFFORTS AIMED MOSTLY AT DOCTORS AND HOSPITALS ARE DOOMED IF THE PATIENT'S ROLE IN MAKING DEMANDS ON THE SYSTEM IS IGNORED THE HEALTHCARE SYSTEM MUST BE REORIENTED TO BOTH RESPOND TO AND ENCOURAGE A MORE ACTIVE ROLE BY PATIENTS AND THEIR FAMILIES SAID BRYAN BUSHICK A CONSULTANT WITH TOWERS PERRIN A BENEFITS CONSULTANT THAT IS WORKING WITH THE TWIN CITIES EMPLOYERS AMONG OTHER THINGS THIS MEANS DEVELOPING WAYS TO TEACH CONSUMERS ABOUT THE WORKINGS OF THE HEALTHCARE SYSTEMS AND TO CURTAIL PATIENT DEMAND FOR CARE THAT MAY BE UNNECESSARY OR OF LITTLE BENEFIT THE STUDY WHICH INCLUDED EMPLOYEES AND DEPENDENTS ENROLLED IN BOTH MANAGEDCARE AND TRADITIONAL FEEFORSERVICE HEALTH PLANS INDICATED THAT CONSUMERS DISTRUST THE ROLE FINANCIAL INCENTIVES PLAY IN THEIR TREATMENT THOSE IN MANAGEDCARE PLANS VOICED CONCERNS THAT PHYSICIANS CHARGED WITH CONTAINING COSTS MIGHT WITHHOLD TREATMENT WHILE THOSE PAID ON A FEEFORSERVICE BASIS MIGHT ORDER UP AN EXCESS OF PROCEDURES THERE WAS A QUESTION OF WHOSE SIDE IS THE PHYSICIAN ON SAID MIKE COTTEN VICE PRESIDENT COMPENSATION AND BENEFITS AT CERIDIAN CORP AND LEADER OF THE EFFORT TO DEVELOP A HEALTH CONSUMER EDUCATION PROGRAM THE PROJECT IS PART OF A BROAD HEALTHCARE INITIATIVE LAUNCHED LAST YEAR BY THE MINNEAPOLIS EMPLOYER COALITION CALLED THE BUSINESS HEALTH CARE ACTION GROUP THE FOCUS GROUPS INDICATED THAT PARTICIPATING EMPLOYEES AGREED THAT THE COST AND QUALITY OF HEALTHCARE NEED TO BE MANAGED BUT THEY VIEWED COPAYMENTS SUCH AS A 10 FEE PER DOCTOR VISIT AS A NUISANCE AND A POTENTIAL BARRIER TO MAKING APPOINTMENTS FOR PREVENTIVE HEALTH SERVICES THEY GENERALLY SAID THEY EXPECTED TO BE FREE TO CHOOSE THEIR OWN DOCTORS AND THEY REVEALED A LACK OF UNDERSTANDING OF THE ROLE OF FAMILY DOCTORS AS DIRECTORS OF CARE AS WELL AS WORRIES THAT SUCH DOCTORS WOULD BE LIMITED IN THEIR KNOWLEDGE OF SERIOUS MEDICAL PROBLEMS COPAYMENTS AND SOME RESTRICTIONS ON CHOOSING DOCTORS ESPECIALLY THE ABILITY TO SEE SPECIALISTS WITHOUT REFERRALS FROM PRIMARYCARE PHYSICIANS ARE COMMON FEATURES OF MANAGEDCARE PLANS AND ARE EXPECTED TO BE INCLUDED IN PRESIDENT CLINTON'S HEALTHOVERHAUL PLAN 9305240117 930524 MARKETING & MEDIA NOTED WHO'S NEWS JOHN P SCANLON WAS NAMED A PARTNER AT ABERNATHY/MACGREGOR NEW YORK A PUBLIC RELATIONS FIRM SPECIALIZING IN FINANCIAL AND CORPORATE COMMUNICATIONS THE AGENCY CHANGES ITS NAME TO ABERNATHY/MACGREGOR/SCANLON WITH HIS MOVE TO THE FIRM ON JUNE 1 MR SCANLON AGE 58 HAD BEEN A PARTNER AT THE PUBLIC RELATIONS FIRM OF SAWYER/MILLER SOFTWARE ACQUISITION SONY CORP'S MULTIMEDIA PRODUCTS SUBSIDIARY SONY ELECTRONIC PUBLISHING CO SAID IT ACQUIRED BRITAIN'S PYGNOSIS LTD A DEVELOPER AND PUBLISHER OF COMPUTER AND VIDEO GAME SOFTWARE PYGNOSIS WILL CONTINUE TO MARKET SOFTWARE UNDER ITS OWN NAME AND UNDER THE SONY IMAGESOFT NAME 9305240116 930524 WHO'S NEWS REBUILD LA LOSES A TARGET OF CRITICISM AS WELL AS A LEADER UEBERROTH WHO HOPED TO SET A COURSE FOR OTHER CITIES WILL NOW TAKE A BACK SEAT BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES PETER UEBERROTH'S DEPARTURE AS COCHAIRMAN OF REBUILD LA LEAVES THE NATION'S MOST AMBITIOUS PRIVATESECTOR URBAN RENEWAL EFFORT WITHOUT ITS MAIN TARGET OF CRITICISM BUT ALSO WITHOUT ANY CLEAR LEADER MR UEBERROTH'S ANNOUNCEMENT FRIDAY THAT HE WAS STEPPING DOWN FROM THE LEADERSHIP RANKS OF RLA MARKS THE END OF A TUMULTUOUS 13MONTH TENURE THAT BEGAN AFTER SOME OF THE WORST RIOTING IN US HISTORY TORE THROUGH THIS CITY IN APRIL 1992 MAYOR TOM BRADLEY ASKED MR UEBERROTH A FORMER BASEBALL COMMISSIONER AND CHIEF ORGANIZER OF THE 1984 SUMMER OLYMPICS HERE TO HEAD THE CITY'S RIOTRECOVERY EFFORT AT THE TIME MR UEBERROTH SPOKE OF BUILDING A BROAD COALITION TO TAP THE PRIVATE SECTOR TO REVITALIZE LOS ANGELES IN THE PROCESS HE SAID HE HOPED TO CREATE A BLUEPRINT FOR HELPING OTHER CITIES BUT RLA SO FAR HAS RECEIVED DECIDEDLY MIXED REVIEWS THOUGH VARIOUS COMPANIES HAVE COMMITTED ABOUT 500 MILLION TO THE REBUILDING EFFORT RLA CALCULATES SEVERAL BILLION DOLLARS MORE ARE STILL NEEDED RLA HAS BEEN HOBBLED BY INTERNAL BICKERING POOR PUBLIC RELATIONS AND HOSTILITY FROM SOME LOCAL LEADERS MR UEBERROTH HAS BEEN THE MAGNET FOR MUCH OF THE UNHAPPINESS ABOUT RLA THERE HAVE BEEN REPEATED QUESTIONS ABOUT WHETHER A WEALTHY WHITE REPUBLICAN FROM ORANGE COUNTY WAS QUALIFIED TO HEAD THE RECOVERY EFFORT OF SUCH AN ETHNICALLY DIVERSE CITY MR UEBERROTH FURTHER ALIENATED SOME PEOPLE WITH HIS HARDNOSED AND BLUNT STYLE AS HE TOLD ONE COMMUNITY GROUP IN TURNING DOWN ITS REQUESTS FOR HELP SHORTLY AFTER THE RIOTS I DIDN'T COME HERE TO MAKE YOU FEEL GOOD I CAME HERE TO TELL YOU THE TRUTH IN AN INTERVIEW FRIDAY MR UEBERROTH ACKNOWLEDGED THAT THE CONTINUED CRITICISM PLAYED A ROLE IN HIS STEPPING DOWN I THINK THE POLITICIANS WILL BE MORE COMFORTABLE WITH ME OUT HE SAID HE INSISTED THAT HIS RESIGNATION WASN'T AN ACKNOWLEDGEMENT OF DEFEAT AND REITERATED HIS BELIEF THAT RLA IS MOVING FORWARD HE SAID HE WILL STAY INVOLVED AS AN RLA BOARD MEMBER AND WILL CONTINUE TO SOLICIT BUSINESSES TO INVEST IN LOS ANGELES I'LL STILL BE AT RLA MEETINGS I'LL JUST BE AT THE BACK OF THE ROOM INSTEAD OF THE FRONT MR UEBERROTH SAID HE SAID HE PLANNED TO SPEND MORE TIME WITH HIS FAMILY AND ON PERSONAL BUSINESS INTERESTS BEFORE TAKING ON THE RLA JOB MR UEBERROTH HEADED A NEWPORT BEACH CALIF CONSULTING FIRM CALLED THE CONTRARIAN GROUP HIS DEPARTURE LEAVES RLA WITH A POTENTIALLY UNWIELDY LEADERSHIP STRUCTURE MADE UP OF THREE OTHER COCHAIRMEN AND ONE COCHAIRWOMAN NONE OF WHOM HAS THE PUBLIC STATURE OF MR UEBERROTH ALTHOUGH MR UEBERROTH WAS OFFICIALLY ONLY A COCHAIRMAN HE WAS WIDELY RECOGNIZED AS THE FIRST AMONG EQUALS AND MUCH OF THE STRUCTURE AND TENOR OF RLA WAS SET BY HIM 9305240115 930524 INTERNATIONAL CREDITORS' COURT ACTION PROMPTS A HALT IN STOCK TRADING OF AGA KHAN'S FIMPAR BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL MILAN CREDITOR BANKS OF THE AGA KHAN'S FIMPAR SPA ARE ASKING AN ITALIAN COURT TO PLACE THE HOLDING COMPANY'S ASSETS UNDER JUDICIAL PROTECTION AS A RESULT FIMPAR'S SHARES HAVE BEEN SUSPENDED FROM TRADING THE AGA KHAN THE SPIRITUAL LEADER OF THE WORLD'S ISMAILI MUSLIMS AND ONE OF THE WORLD'S RICHEST MEN OWNS 86 OF FIMPAR A GROUP OF 16 BANKS LED BY IMI BANK AG OF GERMANY SOUGHT THE COURT ORDER AGAINST FIMPAR FRIDAY THE REQUEST FOR A SEQUESTOR OF FIMPAR'S ASSETS SEEMS TO BE A STRATEGIC MOVE BY CREDITOR BANKS SEEKING TO PROTECT THEIR INTERESTS IN THE FINANCIAL HOLDING COMPANY ACCORDING TO THE BANKS' REQUEST FIMPAR'S ASSETS SHOULD BE PLACED IN THE COURT'S HANDS UNTIL A RESTRUCTURING OF ONE OF ITS SUBSIDIARIES IS COMPLETED FIMPAR'S ASSETS CONSIST OF A 50 STAKE IN THE LUXURY HOTEL CHAIN CIGA SPA AN 117 STAKE IN SARDINIABASED AIRLINE MERIDIANA SA AND A 49 STAKE IN REAL ESTATE DEVELOPERS CIGA IMMOBILIARE SPA ITALY'S STOCK MARKET WATCHDOG CONSOB IMMEDIATELY SUSPENDED TRADING IN SHARES OF BOTH FIMPAR AND CIGA TO PREVENT SPECULATION A GROUP OF BANKS LED BY MEDIOBANCA IS CURRENTLY IN THE MIDST OF EXPLORING WAYS TO RESTRUCTURE CIGA'S DEBT INDUSTRY OFFICIALS SAID FIMPAR CREDITORS WANT SOME INPUT FIMPAR ITSELF IS FAR FROM FINANCIAL HEALTH ALL OF THE COMPANY'S ACTIVITIES HOTELS AN AIRLINE AND REAL ESTATE HAVE BEEN HIT BY THE RECESSION THE COMPANY IS ALSO STRUGGLING UNDER THE WEIGHT OF 100 MILLION IN DEBT TO IMILED BANKS TECHNICALLY FIMPAR IS IN DEFAULT AND CIGA IS IN DEFAULT OF LOAN PROVISIONS SAID A FIMPAR SPOKESMAN BUT THE ASSETS ARE WORTH FAR MORE THAN THE DEBTS OF THE GROUP HE SAID THE SITUATION IS DIFFICULT BUT NOT IF WE HAVE THE COOPERATION OF THE BANKS WHICH WE APPEAR TO HAVE THE SPOKESMAN ADDED CIGA'S CRISIS AND THUS FIMPAR'S DATES BACK TO AN ILLTIMED SHARE OFFERING IN 1990 AFTER A SEVENYEAR EXPANSION EFFORT BROUGHT CIGA SOME OF THE WORLD'S MOST LUXURIOUS HOTELS SUCH AS ROME'S HOTEL EXCELSIOR AND THE HOTEL MEURICE IN PARIS CIGA SOUGHT TO RAISE 200 BILLION LIRE 1359 MILLION THROUGH A SHARE OFFERING BY ITS PARENT FIMPAR BUT THE GULF WAR CAUSED NERVOUS BANKERS TO SUSPEND THE SHARE OFFERING LEAVING CIGA WITH A MOUNTAIN OF DEBT PLUMMETING ASSET VALUES AND A LACK OF CLIENTS 9305240114 930524 INTERNATIONAL JAPAN ON AN IRONIC CRUSADE LOBBIES OTHER NATIONS TO ENDORSE FREE TRADE BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO IN A MOVE DESIGNED TO EMBARRASS THE CLINTON ADMINISTRATION THE JAPANESE GOVERNMENT WILL PRESS THE WORLD'S OTHER LEADING CAPITALIST NATIONS NEXT MONTH TO OPENLY ENDORSE FREE TRADE CONDEMN MANAGED TRADE AND OPPOSE NUMERICAL TRADE TARGETS IT'S A SEEMINGLY INNOCUOUS REQUEST A SIMPLE REAFFIRMATION OF THE PRINCIPLES THAT THE LEADING ECONOMIES HAVE CHERISHED FOR HALF A CENTURY BUT COMING FROM JAPAN A MONUMENT TO MANAGED ECONOMICS THE MOVE SEEMS PARTICULARLY IRONIC MORE SO BECAUSE THE US LONG A CHAMPION OF FREE TRADE APPEARS TO BE RESISTING WE WANT TO HAVE SOME STATEMENT GIVING WARNINGS ABOUT MANAGED TRADE ABOUT RECENT MOVES TOWARD PROTECTIONISM A JAPANESE FOREIGN MINISTRY OFFICIAL SAID FRIDAY BUT THE AMERICANS HAVE OBJECTED BECAUSE IT NOW CLEARLY REFERS TO THE POLICIES TAKEN BY THE UNITED STATES JAPAN HAS ASKED THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT THE WORLD'S TWODOZEN LEADING CAPITALIST ECONOMIES TO ENDORSE ITS PROPOSAL AT A MEETING NEXT MONTH JAPANESE OFFICIALS SAY THEY'LL MAKE THE SAME PITCH TO THE MORE POWERFUL GROUP OF SEVEN INDUSTRIALIZED NATIONS IN JULY US OFFICIALS IN TOKYO DIDN'T HAVE ANY COMMENT THE MOVE IS PART OF JAPAN'S STRATEGY TO SHAME PRESIDENT CLINTON INTO BACKING OFF FROM TOUGH THREATS HE HAS RECENTLY MADE THE US FRUSTRATED WITH ITS INTRACTABLE TRADE IMBALANCE WITH JAPAN AND FAILED EFFORTS TO REMEDY IT HAS DECIDED THAT THE ONLY WAY TO DEAL WITH JAPAN'S SPECIAL FORM OF CAPITALISM IS TO ESTABLISH TARGETS FOR MEASURABLE RESULTS THAT IS TO MANAGE TRADE WITH THE NATION JAPANESE OFFICIALS SAY THEY ALSO HOPE TO RALLY EUROPE TO THEIR CAUSE NOTING THAT EUROPEANS ARE ALSO AFRAID OF THE TOUGH NEW US TRADE LINE BUT THEY CONFESS THEY'RE GETTING A LUKEWARM RESPONSE EUROPEANS DON'T WANT MANAGED TRADE WITH THE US THE JAPANESE OFFICIAL SAID BUT THEY DO WANT MANAGED TRADE WITH JAPAN JAPAN'S GAMBIT FITS WITH THE NATION'S GROWING WILLINGNESS TO DISAGREE WITH THE US IN INTERNATIONAL DEBATE THE US ALSO IS PRESSING JAPAN TO SPEND MORE TO STIMULATE ITS DOMESTIC ECONOMY AND THUS BRING DOWN THE NATION'S TRADE SURPLUS JAPANESE OFFICIALS TAKE UMBRAGE NOTING THAT THE INDEBTED US IS IN NO POSITION TO LECTURE OTHERS ABOUT SPENDING THE SUMMIT SAYS THE FOREIGN MINISTRY OFFICIAL WILL BE A FIGHT BETWEEN CONCERTED DISCIPLINE AND CONCERTED DECADENCE 9305240113 930524 FINANCING BUSINESS ROBERTSON CECO CORP ROBERTSON CECO CORP BOSTON STARTED AN EXCHANGE OF NEW DEBT AND EQUITY FOR ITS 15 1/2 DEBENTURES IT ALSO SAID IT WILL ASK HOLDERS TO APPROVE A 1FOR165 REVERSE SPLIT THE CONSTRUCTION PRODUCTS COMPANY SAID THE DEBT EXCHANGE COUPLED WITH A NEW 35 MILLION CREDIT FACILITY WITH FOOTHILL GROUP WILL PROVIDE A FINANCIAL STRUCTURE CAPABLE OF SUPPORTING A BUSINESS PLAN FOR A RETURN TO PROFITABILITY HOLDERS OF EACH 1000 PRINCIPAL AMOUNT OF 15 1/2 DISCOUNT DEBENTURES DUE 2000 WILL RECEIVE 40757 OF 10 TO 12 SENIOR SUBORDINATED NOTES DUE 1999 PLUS 18381 COMMON SHARES THOSE SHARES WOULD BE EQUAL TO 1114 SHARES AFTER THE PROPOSED SPLIT ROBERSTON CECO SAID IT ALSO PLANS TO EXCHANGE ITS OUTSTANDING PREFERRED STOCK FOR COMMON STOCK THE COMPANY DIDN'T SET AN EXPIRATION DATE FOR ITS EXCHANGE OFFER IT SAID IT HAS COMMITMENTS FROM HOLDERS OF 83 OF ITS DEBENTURES THE SWAP WON'T BE EFFECTIVE UNLESS 95 OF THE DEBENTURES ARE EXCHANGED 9305240112 930524 DIVIDEND NEWS COMMUNICATIONS SATELLITE CORP COMMUNICATIONS SATELLITE CORP SAID SHAREHOLDERS APPROVED A 2FOR1 STOCK SPLIT AND A CHANGE IN THE COMPANY'S NAME TO COMSAT CORP EFFECTIVE IMMEDIATELY THE STOCK SPLIT IS PAYABLE JUNE 1 TO SHARES OF RECORD ON THAT DATE COMSAT HOLDERS APPROVED AN INCREASE IN AUTHORIZED COMMON SHARES TO 100 MILLION FROM 40 MILLION PRIMARILY TO TO ACCOMMODATE THE STOCK SPLIT THE WASHINGTON DC COMPANY SAID THE SPLIT IS INTENDED TO BROADEN THE MARKET FOR THE STOCK FOR INVESTORS AND COMSAT EMPLOYEES HOLDERS ALSO APPROVED AN INCREASE IN AUTHORIZED SHARES OF PREFERRED TO FIVE MILLION FROM 1000 A COMSAT SPOKESMAN SAID THE COMPANY BELIEVES THAT PREFERRED STOCK IS A GOOD WAY TO RAISE CAPITAL IN TODAY'S MARKET BUT HE SAID THE COMPANY DOESN'T HAVE ANY CURRENT PLANS TO ISSUE THE ADDITIONAL PREFERRED STOCK COMSAT SAID CJ SILAS 60 YEARS OLD WAS NAMED TO THE 15PERSON BOARD SUCCEEDING JOSEPH V CHARYK 75 A FORMER CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COMSAT 9305240111 930524 LEISURE & ARTS TELEVISION THE YEAR'S NOT QUITE 10 BEST BY ROBERT GOLDBERG HERE WE ARE AT THE END OF ANOTHER TV SEASON THE SEASON OF THE LONG GOODBYE AFTER WEEKS OF THROATCLEARING AND FOOTDRAGGING CHEERS THE WONDER YEARS AND KNOTS LANDING HAVE FINALLY BEEN PUT OUT OF THEIR MISERY AND NOW WE CAN GET DOWN TO THE REALLY SERIOUS BUSINESS THE TOP 10 LIST IT WILL COME AS NO SURPRISE THAT ONCE AGAIN IT'S IMPOSSIBLE TO ROUND UP 10 SHOWS FOR THE LIST BUT THE GOOD NEWS IS THAT THE 19921993 SEASON DID HAVE ITS HIGHLIGHTS A MARKED IMPROVEMENT OVER PREVIOUS YEARS EVEN THE FAILURES WERE MORE INTERESTING MTV'S NOUVEAU DOCUMENTARY THE REAL WORLD AND THE MONDO 2000 EXTRAVAGANZA WILD PALMS LONG ON INVENTIVE AMBIANCE BUT SHORT ON BORING DETAILS LIKE PLOT AND CHARACTER THIS YEAR WAS GRACED BY SEVERAL STRONG PERFORMANCES IN MOVIES AND MINISERIES JAMES WOODS IN CITIZEN COHN GLENN CLOSE IN SKYLARK THE SEQUEL TO SARAH PLAIN AND TALL PHILIP CASNOFF IN SINATRA ANJELICA HUSTON IN FAMILY PICTURES AND HOLLY HUNTER IN THE POSITIVELY TRUE ADVENTURES OF THE ALLEGED TEXAS CHEERLEADERMURDERING MOM BUT THE BEST PERFORMANCES OF THE YEAR MAY HAVE COME FROM POLITICANS IF 1960 MARKED A TURNING POINT THE FIRST TIME TV INFLUENCED A PRESIDENTIAL ELECTION THEN 1992 MARKED AN EVEN MORE PIVOTAL MOMENT IN THIS TALKSHOW ELECTION TELEVISION BECAME THE DECISIVE FORUM FROM THE EMERGENCE OF THE FOLKSY HOMESPUN ROSS PEROT MR IT'S JUST THAT SIMPLE TO THE DEMOCRATS WHO UNDERSTOOD THAT THE CONVENTION WAS A TV SHOW AND MOUNTED A YOUTHFUL ENERGIZED ELECTIONWINNING PROGRAM HOW ANY OF THESE POLITICOS PLAY AS A LONGRUNNING SERIES IS YET TO BE SEEN STILL WHATEVER PRESIDENT CLINTON'S PROBLEMS HIS LATEST MASTERFUL TV TOWNHALL MEETING FROM SAN DIEGO PROVED THAT IF HE EVER QUITS HIS JOB HE HAS A DEFINITE FUTURE AS A TALKSHOW HOST ON TO THE TOP SERIES HOMICIDE LIFE ON THE STREET THE BEST SHOW ON TV BARRY LEVINSON'S POLICE PROCEDURAL TAKES US INSIDE A BALTIMORE PRECINCT HOUSE AND OUT ACROSS A GRITTY URBAN LANDSCAPE FOLLOWING EIGHT HARDENED DETECTIVES ON THE TRAIL OF MURDER COLD AND FAST JARRING AND JAGGED THIS IS NOT A SHOW ABOUT LOVABLE FLATFEET BUT IT'S WELLWRITTEN WELLACTED AND WELLDIRECTED AND IF THIS PROGRAM DOESN'T GET BACK ON THE AIR EARLY NEXT SEASON IT'S THE NBC EXECUTIVES WHO SHOULD BE BUMPED OFF THE LARRY SANDERS SHOW AND NOW BECAUSE ONLY HE BRINGS OUT THE NATURAL LUSTER OF THE WOOD IT'S LARRY SANDERS HIPPER THAN JOHNNY FUNNIER THAN ARSENIO SHORTER THAN DAVID LETTERMAN GARRY SHANDLING FINALLY HITS THE JACKPOT AS MYTHICAL TALKSHOW HOST LARRY SANDERS AN INCREDIBLY LIFELIKE SIMULATION OF THE DESKANDSOFA WORLD BOTH BEHIND AND IN FRONT OF THE CAMERAS THIS SHOW IS PACKED WITH DEADPAN WIT AND A WICKED SENSE OF THE ABSURDITIES OF SHOWBIZ PRETENSIONS THE ULTIMATE COMPLIMENT IS THAT BOTH NBC AND CBS HAVE RECENTLY BEEN WOOING MR SHANDLING TO HOST A REAL TALK SHOW SOME FOLKS JUST DON'T UNDERSTAND SATIRE I'LL FLY AWAY WITH INTELLIGENCE AND A QUIET DIGNITY THIS SERIES TACKLED BLACK AND WHITE ISSUES OF 1950S RACE RELATIONS WITH UNDERSTANDING SHADES OF GRAY THE SHOW'S BEDROCK THE SIMPLE STRENGTH OF SAM WATERSTON AND REGINA TAYLOR AS TWO WELLMEANING CONFLICTED PEOPLE STRUGGLING TO MAKE SENSE OF A TURBULENT TIME NBC CANCELED THE SERIES LAST WEEK SEINFELD LAST YEAR'S HONORABLE MENTION MOVES ONTO THIS YEAR'S TOP 10 AS SEINFELD PROVES THAT THE LESS IT'S ABOUT THE FUNNIER IT GETS STINKY CARS A NIGHT AT THE OPERA A TRIP TO A FLORIDA RETIREMENT COMMUNITY AND ONE SHOW WE DON'T DARE EVEN DESCRIBE JERRY WAS CERTAINLY THE KING OF HIS DOMAIN THIS YEAR THE MASTER OF ALL HE SURVEYED PICKET FENCES LIKE A NORMAN ROCKWELL PAINTING WITH A MIDGET IN THE CORNER THIS SERIES BRINGS US SMALLTOWN AMERICANA WITH AN ODDBALL TWIST FROGMEN AND CIRCUS ACTS AND SERIAL BATHERS A DEFT BLEND OF WARM HUMOR AND QUIRKY WIT FENCES MAY VEER OCCASIONALLY INTO TREACLE BUT ON EPISODES MIXING UFO SCARES BUSTED ROMANCES AND STRANGE LEGAL TANGLES OVER HORMONE INJECTIONS OLDSTYLE LA LAW STAPLES THE SHOW HAS A BITTERSWEET EDGE A PERSONAL FAVORITE FYVUSH FINKEL AS WAMBAUGH FOR THE DEFENSE SEVERAL SERIES THAT DIDN'T CRACK THE TOP 10 THIS SEASON STILL DESERVE MENTION LAW AND ORDER NOW WITH JERRY ORBACH CONTINUING ITS SOMBER PURSUIT OF TRUTH AND JUSTICE TRIBECA FOX'S PLAYHOUSE 90 FOR THE '90S THE FORTYSOMETHING ENSEMBLE DRAMEDY MIDDLE AGES AND FLYING BLIND ABOUT AN UPTOWN GUY IN A DOWNTOWN WORLD WITH THE OFFBEAT DELICIOUS TEA LEONI CERTAIN EPISODES OF ROSEANNE WERE WORTHY OF NOTE HANDLING DIFFICULT ISSUES LIKE PHYSICAL ABUSE WITH SENSITIVITY AND HUMOR ALTHOUGH I WAS REALLY MORE OF A JACKIE THOMAS FAN PROBABLY THE ONLY ONE AND AS FOR MURPHY BROWN SHE'S OUTLASTED DAN QUAYLE JUST AS PREDICTED HERE A YEAR AGO BUT IN A WAY DAN WAS RIGHT TOO SINGLE MOTHERHOOD HAS DEFINITELY TAKEN ITS TOLL ON MURPHY THE SHOW JUST ISN'T AS SHARP THIS WAS ALSO A YEAR OF SOME MAJOR DISAPPOINTMENTS A YEAR BIGNAME TALENT STEPPED UP TO THE PLATE AND WHIFFED LOVE AND WAR FROM DIANE ENGLISH WAS A VASTLY OVERRATED EXERCISE IN SEXUAL TENSION MORE LIMP THAN TENSE CHARTING THE BLOODLESS RELATIONSHIP BETWEEN A COLUMNIST AND A YUPPIE RESTAURATEUR IN STALIN ROBERT DUVALL WAS LIKE THE PRISONER OF ZENDA IMPOSSIBLE TO FIND UNDER A MASK OF MAKEUP AND THE TURGID HISTORICAL BIOPIC SANK UNDER ITS OWN WEIGHT JOSHUA BRAND AND JOHN FALSEY CREATORS OF NORTHERN EXPOSURE AND I'LL FLY AWAY GOT LETHARGIC UNDER THE ISLAND SUN AND CAME AWAY BURNED IN GOING TO EXTREMES A SLIM TALE OF YOUNG DR KILDARES ON THE BEACH AND BOTH LA LAW AND THE OLYMPICS TRIPLECAST PROVED ONCE AGAIN THAT IT IS POSSIBLE TO HAVE TOO MUCH OF A GOOD THING LASTLY THE ACADEMY AWARDS EVERY YEAR THEY GET WORSE IT'S SHOCKING THAT PEOPLE IN THE ENTERTAINMENT INDUSTRY HAVE SO LITTLE IDEA OF WHAT'S ENTERTAINING WHO IN 1993 IS INTERESTED IN THOSE BIG PRODUCTION NUMBERS WITH PEOPLE IN COSTUMES RUNNING AND JUMPING AND LIPSYNCHING BRING BACK JACK PALANCE AND HIS ONEARMED PUSHUPS SPEAKING OF AWARDS THIS EVENING MARKS THE FIRST AIRING OF THE AMERICAN TELEVISION AWARDS ABC 911 PM EDT ALL THE SELECTIONS ARE MADE BY THE TV CRITICS WHICH AS YOU'VE SEEN IS NO GUARANTEE OF ANYTHING 9305240110 930524 US REPORTS SURPLUS IN BUDGET FOR APRIL OF 809 BILLION WASHINGTON THE FEDERAL GOVERNMENT POSTED AN 809 BILLION BUDGET SURPLUS IN APRIL COMPARED WITH A 146 BILLION SURPLUS THE SAME MONTH A YEAR EARLIER LAST MONTH'S SURPLUS FOLLOWED A 4458 BILLION DEFICIT IN MARCH THE GOVERNMENT GENERALLY HAS A BUDGET SURPLUS IN APRIL THE MONTH TAX RETURNS ARE DUE ANALYSTS SAID THIS YEAR'S SURPLUS WAS SMALLER BECAUSE INDIVIDUAL TAX RECEIPTS ARE ESTIMATED TO BE NEARLY 18 BELOW LAST YEAR'S LEVEL KATHLEEN STEPHANSEN AN ECONOMIST WITH DONALDSON LUFKIN & JENRETTE SAID THE LOWER RECEIPTS SUGGEST THAT TAXPAYERS INCREASED THE AMOUNT OF TAXES WITHHELD FROM THEIR PAYCHECKS IN 1992 REDUCING THE AMOUNT THEY HAD TO PAY THE FEDERAL GOVERNMENT IN APRIL IN ITS MONTHLY BUDGET STATEMENT THE TREASURY SAID RECEIPTS TOTALED 13212 BILLION IN APRIL COMPARED WITH 13836 BILLION A YEAR EARLIER AND 8345 BILLION THE PREVIOUS MONTH OUTLAYS TOTALED 12403 BILLION IN APRIL COMPARED WITH 12376 BILLION A YEAR EARLIER AND 12803 BILLION THE MONTH BEFORE FOR THE YEAR THAT BEGAN IN OCTOBER THE DEFICIT TOTALED 17474 BILLION THROUGH APRIL COMPARED WITH A 18476 BILLION BUDGET GAP FOR THE YEAREARLIER PERIOD THE TREASURY SAID THE GOVERNMENT LAST MONTH PAID 1797 BILLION IN INTEREST ON THE FEDERAL DEBT THE RESOLUTION TRUST CORP IN APRIL GENERATED 27 BILLION IN RECEIPTS FROM THE SALE OF INSOLVENT THRIFTS COMPARED WITH 967 MILLION IN MARCH THE RTC HASN'T BEEN ABLE TO TAKE OVER ANY NEW THRIFTS SINCE EARLY LAST YEAR BECAUSE CONGRESS HASN'T PROVIDED IT NEW FUNDS 9305240109 930524 CORPORATE FOCUS AN INDUSTRY'S DIRECTION RIDES ON SCHNEIDER NATIONAL FREIGHT TRUCKER'S CHOICE OF INTERMODAL EQUIPMENT COULD SET STANDARD BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL FOR A MAJOR TRUCKER WHO RUNS FREIGHT TRAILERS DONALD SCHNEIDER ATTRACTS A LOT OF ATTENTION FROM RAILROADERS MR SCHNEIDER IS PRESIDENT OF SCHNEIDER NATIONAL INC ONE OF THE NATION'S LARGEST HAULERS OF FULL TRUCKLOAD FREIGHT FOR SIX MONTHS A STEADY STREAM OF EXECUTIVES FROM MAJOR RAILROADS AND EQUIPMENT MANUFACTURERS HAS BEEN TREKKING TO HIS GREEN BAY WIS OFFICE THEIR AIM TO SWAY HIS DECISION IN JUNE THAT WILL SET A NEW DIRECTION FOR THE NATION'S SURFACE TRANSPORT INDUSTRIES THE ISSUE IS SETTING AN INDUSTRY STANDARD IN AN INDUSTRY THAT DOESN'T HAVE ONE FOR MONTHS SCHNEIDER NATIONAL HAS BEEN TESTING A WIDE VARIETY OF NEW SHIPPING TECHNOLOGIES AS IT PREPARES TO BECOME A BIG PLAYER IN FASTGROWING INTERMODAL TRANSPORT WHICH MOVES FREIGHT BY A COMBINATION OF ROAD AND RAIL THE INDUSTRY GENERATES ABOUT 6 BILLION IN ANNUAL REVENUE ACCORDING TO MERCER MANAGEMENT CONSULTING IN LEXINGTON MASS WHICH SPECIALIZES IN TRANSPORTATION SCHNEIDER NATIONAL'S CHOICE OF INTERMODAL EQUIPMENT TO REPLACE ITS 20000 HIGHWAY TRAILERS COULD HELP RAILROADS REALIZE THE INDUSTRY DREAM OF COSTSAVING EFFICIENCY THROUGH STANDARDIZATION OR IT COULD TRIGGER A COSTLY TECHNOLOGY RACE PITTING SCHNEIDER AGAINST ARCHRIVAL TRUCKER JB HUNT TRANSPORT SERVICES INC LOWELL ARK EITHER WAY MR SCHNEIDER'S CHOICE WILL POWER A WHOLE NEW DIRECTION IN SURFACE TRANSPORTATION OF FREIGHT SAYS THOMAS FINKBINER CONTAINERSHIPPING CHIEF OF NORFOLK SOUTHERN CORP NORFOLK VA HUNT HAS ORDERED SOME 20000 NEW LIGHTWEIGHT HIGHCAPACITY CONTAINERS THAT CAN BE STACKED ON SPECIAL RAIL CARS SEVERAL HUNDRED HAVE ARRIVED IF MR SCHNEIDER GOES THE SAME DOUBLESTACK ROUTE IT COULD HELP MOVE THE INTERMODAL INDUSTRY TOWARD A STANDARD THAT COULD SQUEEZE HUNDREDS OF MILLIONS OF DOLLARS OF EFFICIENCIES FROM THE RAIL CARS TERMINALS CONTAINER CRANES AND OTHER EQUIPMENT THE INDUSTRY WILL BUY IN THE NEXT FIVE YEARS BUT HE ALSO IS TESTING ROADRAILERS HIGHWAY TRAILERS THAT CONVERT QUICKLY TO RAIL CARS BY ATTACHING TO A SET OF RAILROAD WHEELS THEY ARE EASIER AND FASTER TO HANDLE THAN DOUBLESTACK OR PIGGYBACK RAIL CARS AND PROMISE BETTER COMPETITION WITH HIGHWAY TRUCKERS IN DELIVERY OF SHORTERHAUL SHIPMENTS BUT CREATING A NATIONWIDE ROADRAILER NETWORK COULD LEAD TO ADDITIONAL INVESTMENTS IN TERMINALS AND TRAIN OPERATING COSTS METICULOUS AND ANALYTICAL THE 57YEAR OLD MR SCHNEIDER A MAJOR SHAREHOLDER OF THE CLOSELY HELD COMPANY WON'T BE RUSHED THERE IS A LOT AT STAKE FOR OUR CUSTOMERS FOR INTERMODAL FOR OUR COMPANY AND FOR THE COUNTRY HE SAYS HE WILL FIRST WEIGH THE REACTIONS OF SHIPPERS AND EMPLOYEES TO PROTOTYPES OF NEW INTERMODAL CONTAINERS AND ROADRAILER TRAILERS LONG TERM IT IS THE CUSTOMER AND NOT STANDARDIZATION THAT IS IMPORTANT HE SAYS MR SCHNEIDER SAYS HE WILL SPEND ABOUT 600 MILLION TO REPLACE HIS HIGHWAY TRAILERS WITH INTERMODAL EQUIPMENT OVER THE NEXT THREE OR FOUR YEARS RAILROAD EXECUTIVES SAY MR SCHNEIDER'S CHOICE COULD SAVE OR COST THEM SEVERAL HUNDRED MILLION DOLLARS IN TERMINAL AND TRAIN OPERATING EXPENSES RAIL OFFICIALS HAVE BEEN URGING MR SCHNEIDER TO GO WITH ONE CHOICE OR ANOTHER OR EVEN HEDGE HIS BETS MR FINKBINER OF NORFOLK SOUTHERN HAS LOBBIED SCHNEIDER EXECUTIVES TO EMBRACE CONTAINERS THAT CAN BE DOUBLESTACKED ON RAIL CARS IT WOULD SIGNIFICANTLY ACCELERATE THE MOVEMENT OF ALL FREIGHT INTO CONTAINERS AND MAKE INTERMODAL A MUCH MORE ATTRACTIVE ALTERNATIVE TO SHIPPING BY HIGHWAY HE SAYS SIMILARLY ENTHUSIASTIC IS JOHN SAMMON AN ASSISTANT VICE PRESIDENT OF CONSOLIDATED RAIL CORP IN PHILADELPHIA WHICH HAS SPENT 80 MILLION TO INCREASE VERTICAL CLEARANCES ON RAIL ROUTES AS A RESULT WE WOULD LIKE TO SEE MORE CUSTOMERS USING DOUBLESTACKED CONTAINERS HE SAYS BUT OTHERS SEEK TO PERSUADE MR SCHNEIDER TO DIFFERENTIATE HIS INTERMODAL SERVICE IT IS VERY HARD FOR HIM TO CREATE A COMPETITIVE ADVANTAGE IF HE IS RUNNING ON THE SAME TRAIN TO THE SAME TERMINAL WITH THE SAME EQUIPMENT AS HIS COMPETITORS SAYS DONALD J EHRLICH CHIEF EXECUTIVE OF WABASH NATIONAL CORP LAFAYETTE IND A MANUFACTURER OF TRUCK TRAILERS FOR SCHNEIDER AND OTHER MOTOR CARRIERS HE WANTS MR SCHNEIDER TO RUN HIS OWN TRAINS OF ROADRAILERS WHICH ARE MADE BY WABASH ALTHOUGH ROADRAILERS WOULD LIKELY HAVE TO BE OPERATED IN A SEPARATE NETWORK ITS TERMINAL COSTS ARE ONLY A FRACTION OF THOSE FOR DOUBLESTACK CONTAINER TRAINS WHICH NEED EXPENSIVE LIFTING CRANES AND ACRES OF PARKING A ROADRAILER TERMINAL IS JUST A SIDING WITH GRAVEL BETWEEN THE RAILS MR EHRLICH SAYS THEN THERE IS CHARLES WILLMOTT A VICE PRESIDENT AT XTRA CORP A TRANSPORTATIONEQUIPMENT LEASING COMPANY WHO URGES SCHNEIDER EXECUTIVES TO STICK WITH RAIL PIGGYBACK THE TRADITIONAL WAY OF TRANSPORTING HIGHWAY TRAILERS AND THEIR WHEELS ON FLAT CARS THE BEST THING PIGGYBACK HAS GOING FOR IT IS THAT THE EXISTING TRUCKLOAD TRAILERS CAN BE USED AND THE TERMINALS AND RAIL CARS ARE IN PLACE TO HANDLE THEM MR WILLMOTT SAYS SCHNEIDER EXECUTIVES SAY THEY ARE CONSIDERING OPTIONS FOR EXAMPLE EXECUTIVES OF CSX CORP'S RAIL UNIT WERE AT SCHNEIDER HEADQUARTERS THURSDAY TO DISCUSS THE MERITS OF THE IRON HIGHWAY A NEW INTERMODAL TRAIN THAT AVOIDS COSTLY CONTAINER CRANES AND TERMINALS TRUCKS DRIVE ON AND OFF THE IRON HIGHWAY A PLATFORM ON WHEELS RATHER THAN DETACHABLE RAIL CARS MR SCHNEIDER SAYS HE IS LEANING TOWARD EITHER DOUBLESTACKABLE CONTAINERS OR ROADRAILERS BUT HE HAS SOME MISGIVINGS ABOUT THE LIGHTWEIGHT CONTAINERS BOUGHT BY JB HUNT THE HUNT CONTAINERS HAVE BEEN STRIPPED DOWN FROM COMPARABLE RAILROAD INTERMODAL CONTAINERS WITH REDUCED FLOOR AND CEILING THICKNESSES TO ACHIEVE THE HIGHER DOOR OPENING AND GREATER CARGO SPACE OF A HIGHWAY TRAILER AND STILL FIT DOUBLESTACKED ON A RAIL CAR PAUL BERGANT A HUNT EXECUTIVE VICE PRESIDENT ACKNOWLEDGES THAT THE NEW CONTAINERS HAVE BEEN DAMAGED ON FOUR OR FIVE OCCASIONS AND BLAMES IMPROPER HANDLING IN RAIL YARDS I THINK WE ARE SETTING THE STANDARD IN TERMS OF THESE NEW DOMESTIC BOXES MR BERGANT SAYS WE HAVE CHARTED OUR COURSE WITH OR WITHOUT HIM MR SCHNEIDER DEBATES OVER INTERMODAL HARDWARE ARE RELATIVELY NEW FOR TRUCKERS WHICH WON LARGE AMOUNTS OF MERCHANDISE FREIGHT FROM THE RAILS BUT IN THE LAST FEW YEARS RAILROADS HAVE BOOSTED THEIR PRODUCTIVITY BY REDUCING TRAIN CREWS AND ADOPTING NEW INTERMODAL TECHNOLOGIES MEANWHILE TRUCKERS HAVE FACED HIGHER COSTS TO RECRUIT AND RETAIN DRIVERS AND MEET MORE STRINGENT ENVIRONMENTAL STANDARDS FIVE YEARS AGO I NEVER WOULD HAVE THOUGHT WE WOULD HAVE ANY RELATIONSHIP WITH A RAILROAD SAYS MR SCHNEIDER POINTING TO A PHOTOGRAPH OF ROADRAILER TRAILERS IN HIS COMPANY'S CHARACTERISTIC ORANGE DURING A RECENT TEST RUN ON SOUTHERN PACIFIC LINES YOU SEE THAT NICE ORANGE LINE HE SAYS IT REMINDS YOU OF A PASSENGER TRAIN RUNNING DOWN THE RAILROAD THAT'S EXCITING 9305240108 930524 BUSINESS BRIEF CHIYODA CORP JAPAN FIRM'S PRETAX PROFIT ROSE 72 IN MARCH 31 YEAR JAPAN'S CHIYODA CORP SAID THAT ITS UNCONSOLIDATED PRETAX PROFIT ROSE 72 IN THE YEAR ENDED MARCH 31 FROM A YEAR EARLIER PRETAX PROFIT WAS 1325 BILLION YEN 1199 MILLION UP FROM 770 BILLION YEN A YEAR AGO CHIYODA A PRODUCER OF OIL REFINING AND PETROCHEMICAL PLANTS SAID THAT ITS UNCONSOLIDATED PRETAX PROFIT FOR THE CURRENT FISCAL YEAR WOULDN'T BE AS HIGH AS IN THE LATEST REPORTING PERIOD AS THE INDUSTRY FUNDAMENTALS ARE RAPIDLY CHANGING BECAUSE OF INCREASING FOREIGN COMPETITION THE STRONGER YEN IN FOREIGNCURRENCY MARKETS AND RISING PERSONNEL EXPENSES THE COMPANY SEES FISCAL 1993 PRETAX PROFIT AT EIGHT BILLION YEN DOWN 40 FROM FISCAL 1992 IN ADDITION NET PROFIT WILL BE 58 LOWER AT 450 BILLION YEN AND SALES DOWN 15 AT 350 BILLION YEN THE COMPANY SAID 9305240107 930524 LEISURE & ARTS BOOKSHELF THE ODYSSEY OF AN EVANGELIST'S SON BY LINDA SIMON ISABEL ALLENDE WAS WORKING AS A JOURNALIST IN HER NATIVE CHILE WRITING NEWS AND FEATURE ARTICLES HOROSCOPES AND A LONELYHEARTS COLUMN WHEN AS SHE TELLS IT SHE MET THE NOBEL PRIZEWINNING POET PABLO NERUDA FOR LUNCH NERUDA WHO HAD READ HER PIECES GAVE HER SOME ADVICE YOU ARE A HORRIBLE JOURNALIST HE TOLD HER BUT YOU ARE A WONDERFUL STORYTELLER YOU HAVE THE IMAGINATION OF A GREAT WRITER INSPIRED BY NERUDA'S COMMENT MS ALLENDE BEGAN THE MANUSCRIPT THAT BECAME HER FIRST NOVEL PUBLISHED HERE IN 1985 AS THE HOUSE OF THE SPIRITS TWO NOVELS AND A COLLECTION OF STORIES SOON FOLLOWED EARNING MS ALLENDE ACCLAIM BOTH FOR HER TALENT AS A STORYTELLER AND IN SOME QUARTERS FOR THE POLITICAL VIEWS THAT INFORM HER FICTION I WANT TO TELL READERS ABOUT MY COUNTRY SHE ONCE TOLD AN INTERVIEWER I WANT TO TELL THEM ABOUT TORTURE CHAMBERS ABOUT POLITICS ABOUT PEOPLE WHO STARVE TO DEATH AND ABOUT PEOPLE WHO SELL THEMSELVES AS SLAVES BECAUSE THEY HAVE NO FOOD THE INFINITE PLAN HARPERCOLLINS 382 PAGES 23 MS ALLENDE'S LATEST NOVEL DOES NOT HAVE THIS AGENDA UNLIKE HER PREVIOUS FICTION THE BOOK IS SET NOT IN LATIN AMERICA BUT IN SOUTHERN CALIFORNIA WHERE SHE NOW LIVES SOUTHERN CALIFORNIA HAS PROBLEMS BUT FASCIST POLITICS SYSTEMATIC RAPE OF WOMEN AND RIGHTWING MILITARY COUPS ARE NOT AMONG THEMUNFORTUNATELY FOR MS ALLENDE I LIKE PLOTS RICH PLOTS SOMETHING HAPPENING ALL THE TIME SHE HAS ADMITTED I NEED PEOPLE TO BE RAPED AND BEHEADED THE INFINITE PLAN IS PACKED WITH THINGS HAPPENING ALL THE TIME BUT THEY DO NOT HELP MS ALLENDE TO MAKE THE POLITICAL CRITIQUE THAT SHE HAS MADE BEFORE NOR TO CREATE THE KIND OF URGENCY AND TENSION THAT ANIMATED HER PREVIOUS WORKS INSTEAD SHE BRINGS US THE OVERLONG ODYSSEY OF GREGORY REEVES FROM THE TIME HE IS FOUR YEARS OLD NEAR THE END OF WORLD WAR II TO THE PRESENT GREGORY IS THE SON OF EVANGELIST CHARLES REEVES WHO TRAVELS ACROSS THE COUNTRY PROCLAIMING THE INFINITE PLAN NOTHING HAPPENS BY CHANCE HE TELLS HIS INCREDULOUS LISTENERS WHO ARE TRYING TO MAKE SENSE OF THEIR MISFORTUNE AND POVERTY EVERYTHING WILL END IN GOODNESS DESIGNED BY A SUPREME INTELLIGENCE REEVES DOMINATES HIS FAMILY HIS WIFE NORA A TACITURN RUSSIAN IMMIGRANT WHO PREFERS BAHAI THEOLOGY TO HER HUSBAND'S AND HIS CHILDREN GREGORY AND JUDY THE HOUSEHOLD ALSO INCLUDES OLGA WHO LIKE NORA IS FROM ODESSA SHE LIVES WITH THE FAMILY PERHAPS AS CHARLES'S LOVER BRINGING HER SKILLS AS A FORTUNETELLER AND HEALER TO CRITICAL MOMENTS OF THE PLOT THROUGH OLGA MS ALLENDE ENTERS THE WORLD OF MAGICAL REALISM A WORN SIGNPOST OF MUCH CONTEMPORARY LATIN AMERICAN FICTION THEN SUDDENLY CHARLES DIES AND THE REEVESES FIND THEMSELVES IN A HISPANIC COMMUNITY OF LOS ANGELES THEY ARE BEFRIENDED BY THE MORALES FAMILY PEDRO THE PROUD PATRIARCH AND CONSCIENCE OF THE COMMUNITY INMACULADA A PILLAR OF STRENGTH AND WARMTH AND THEIR TWO CHILDREN AT THIS POINT MS ALLENDE'S AIM BECOMES UNHAPPILY CLEAR TO CONTRAST THE INTEGRITY OF THE MORALES FAMILY WITH THE VACUOUS MATERIALISM OF AMERICAN CULTURE MS ALLENDE USES GREGORY REEVES TO SHOW US JUST HOW FAR A MAN CAN SINK IN A SOCIETY THAT VALUES MONEY ABOVE ALL THINGS BUT SINCE HE IS SHALLOW AND SELFCENTERED HE IS INCAPABLE OF OFFERING ANYTHING BUT THE MOST SUPERFICIAL OBSERVATIONS ABOUT HIS LIFE A SERIOUS FLAW IN A CHARACTER WHO NARRATES PART OF THE BOOK IT TOOK ME AN ETERNITY TO LEARN THAT THE MORE I ACCUMULATED THE MORE VULNERABLE I WAS BECAUSE I LIVE IN A WORLD WHERE THE OPPOSITE MESSAGE IS DRUMMED INTO US HE INFORMS US IT IS DIFFICULT TO MAINTAIN INTEREST IN A SELFISH MAN WHO SPEAKS IN CLICHES IN FOCUSING HER STORY ON GREGORY MS ALLENDE HAS BACKED HERSELF INTO AN AIRLESS CORNER FROM WHICH SHE SOMETIMES EMERGES WITH VIVID DESCRIPTIONS OLGA WARM WISE AND COMPLEX IS THE KIND OF CHARACTER WHOSE APHORISMS SEEM GENERATED BY AUTHENTIC EXPERIENCE BY THE END OF THE BOOK GREGORY HAS SUFFERED TWO FAILED MARRIAGES AND SIRED TWO NEGLECTED AND DEEPLY DISTURBED CHILDREN MS ALLENDE WOULD LIKE US TO BELIEVE THAT HE THEN ACHIEVES AN EPIPHANY WITH THE HELP OF AN ASIANAMERICAN PSYCHIATRIST BUT HIS INSIGHTS ARE HARDLY ASTOUNDING REFERRING TO HIS FAILURE WITH HIS CHILDREN HE CONCLUDES I USED MONEY AS COMPENSATION FOR THE AFFECTION I DIDN'T KNOW HOW TO GIVE A POOR SUBSTITUTE THE INFINITE PLAN IS ETHNICALLY DIVERSE AND MORALLY EARNEST BUT IT IS NOT DEEPLY FELT MS ALLENDE INCORPORATES INTO THE TALE TOO MANY DETAILS INCEST FOR EXAMPLE AND CANNED SCENES OF VIETNAM THAT ARE MERELY NODS TO TRENDY ISSUES WHEN NERUDA ADVISED HER TO TELL STORIES SURELY HE MEANT HER STORIES NOT THIN TRANSLATIONS FROM ANOTHER CULTURE SHE HAS TOLD HER STORIES BEFORE ONE HOPES SHE WILL DO IT AGAIN MS SIMON IS DIRECTOR OF THE WRITING CENTER AT HARVARD UNIVERSITY AND THE AUTHOR OF THE BIOGRAPHY OF ALICE B TOKLAS 9305240106 930524 WHO'S NEWS FOXMEYER'S KING RESIGNS AS PRESIDENT AND CHIEF EXECUTIVE DALLAS FOXMEYER CORP SAID ROBERT L KING CHIEF EXECUTIVE OFFICER AND PRESIDENT HAS LEFT THE COMPANY AND WILL BE PURSUING OTHER BUSINESS INTERESTS MR KING 43 YEARS OLD WAS SUCCEEDED AS CEO BY THE COMPANY'S COCHAIRMEN ABBEY J BUTLER 55 AND MELVIN J ESTRIN 50 THE COMPANY SAID THOMAS L ANDERSON 44 FORMER EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER ASSUMED THE POSITION OF PRESIDENT THE DRUG WHOLESALER DECLINED TO GIVE A REASON FOR MR KING'S DEPARTURE BUT ANALYSTS BELIEVE MR KING MAY HAVE DECIDED TO LEAVE BECAUSE OF DIFFERENCES WITH NATIONAL INTERGROUP INC WHICH OWNS 805 OF FOXMEYER MR KING COULDN'T BE REACHED TO COMMENT MR KING WILL ALSO RELINQUISH HIS TITLE AS PRESIDENT OF NATIONAL INTERGROUP MESSRS BUTLER AND ESTRIN ARE COCHAIRMEN AND COCHIEF EXECUTIVE OFFICERS OF THE HOLDING COMPANY MR KING'S DEPARTURE COMES AS FOXMEYER SEEKS TO CULTIVATE NEW CUSTOMERS TO REDUCE ITS DEPENDENCE ON RETAILER PHARMOR INC WHICH FILED FOR BANKRUPTCY LAST AUGUST AND COST FOXMEYER MILLIONS OF DOLLARS IN UNPAID BILLS IN THE FISCAL THIRD QUARTER OVERALL FOXMEYER HAS POSTED LACKLUSTER EARNINGS SINCE ITS INITIAL PUBLIC OFFERING IN 1991 ONE ANALYST SUGGESTED THAT THE COMPANY'S RECENT AGGRESSIVE STRATEGY OF EXPANDING MARKET SHARE BY OFFERING LOW PRICES MAY HAVE BEEN A POINT OF CONTENTION BETWEEN FOXMEYER MANAGEMENT AND ITS HOLDING COMPANY WHILE THE NEW BUSINESS BOOSTED REVENUE THE LOW PRICES SQUEEZED PROFIT MARGINS SAID LAWRENCE C MARSH AN ANALYST AT WHEAT FIRST SECURITIES INC 9305240105 930524 DIVIDEND NEWS ALLEGHENY LUDLUM CORP ALLEGHENY LUDLUM CORP PITTSBURGH DECLARED A 2FOR1 STOCK SPLIT AND BOOSTED ITS QUARTERLY DIVIDEND 9 AMID VERY STRONG ORDERS IN APRIL AND MAY FOR ITS SPECIALTY STEEL THE SPLIT AND THE NEW POSTSPLIT DIVIDEND OF 12 CENTS A SHARE UP FROM 11 CENTS ARE PAYABLE JULY 1 TO STOCK OF RECORD JUNE 8 DEMAND HAS BEEN SO STRONG HOWEVER THAT THE SPECIALTY STEELMAKER SAID IT CAN'T PROVE INJURY FROM DUMPED STAINLESS SHEET IMPORTS AND THEREFORE DOESN'T PLAN TO FILE TRADE CASES IN DECEMBER THE COMPANY AND OTHER SPECIALTY STEEL PRODUCERS SAID THEY EXPECTED TO FILE SEVERAL CASES ALLEGHENY LUDLUM SAID THE INDUSTRY MAY HAVE A CHANCE WITH SILICONSTEEL CASES IN REMARKS AT THE ANNUAL MEETING CHIEF EXECUTIVE ROBERT P BOZZONE REPEATING EARLIER FORECASTS SAID HE EXPECTS A NICE IMPROVEMENT IN SECONDQUARTER RESULTS FROM LAST YEAR'S 35 CENTS A SHARE AND STRONG EARNINGS IMPROVEMENT THROUGHOUT 1993 HE DECLINED TO BE MORE SPECIFIC 9305240104 930524 REVIEW & OUTLOOK EDITORIAL A PIECE OF THE PET ROCK IT MIGHT SURPRISE MANY AMERICANS TO KNOW THAT THE HOUSE OF REPRESENTATIVES LAST WEEK VOTED AN INITIAL STEP TOWARD THE NATIONALIZATION OF AMERICAN BUSINESS IT'S ONLY A 50 MILLION PILOT PROGRAM SO DON'T SET SAIL FOR THE CAYMAN ISLANDS YET BUT THE SYMBOLIC IMPORTANCE OF THIS PART OF THE PRESIDENT'S CIVILIAN TECHNOLOGY DEVELOPMENT PROGRAM WAS FLAGGED BY REP CHRISTOPHER COX R CALIF WHO CHAIRS A TASK FORCE ON CAPITAL MARKETS IN THE HOUSE AND BOTHERS TO READ SOME OF THE STUFF THAT MAKES IT ONTO THE FLOOR PASSED WITH A 243 TO 167 VOTE THE NATIONAL COMPETITIVE ACT AUTHORIZES COMMERCE DEPARTMENT INVESTMENTS IN 1994 AND 1995 OF 154 MILLION AND 20 OF OUTSTANDING EQUITY IN EMERGING COMPANIES THAT SECTION WOULD ALSO PERMIT THE GOVERNMENT TO GUARANTEE YIELDS TO PRIVATE INVESTORS FROM SUCH PREFERRED NOTES THAT WOULD PROVE HELPFUL IF AS MR COX SUSPECTS THE SMART SET IN SILICON VALLEY UNLOADS SOME REAL LOSERS ON RON BROWN THIS GEM WAS ATTACHED TO LEGISLATION SPONSORING THE REGIONAL TECHNOLOGY CENTERS THAT NEW DEMOCRATS ARE SO HOT ON IT ALL STEMS FROM THE NOTION THAT THE US HAS BEEN UNDERINVESTING IN TOMORROW'S INDUSTRIES AS DON VALENTINE A TRUE VENTURE CAPITALIST GOING ALL THE WAY BACK TO APPLE COMPUTER IS FOND OF REPLYING PLEASE GO HELP THE RUSSIANS NOT US NOT ONLY IS THERE NO REASON TO BELIEVE THAT OFFICIALS IN WASHINGTON WILL MAKE BETTER INVESTMENT CHOICES THAN THE PRIVATE SECTOR THERE IS EVERY REASON AS ALLAN MELTZER ARGUED ON THIS PAGE RECENTLY TO BELIEVE THAT ONCE HAVING BOUGHT INTO A TURKEY POLITICIANS WILL STRIVE TO KEEP IT ALIVE AND SAVE JOBS THE INTELLECTUAL ORIGIN OF STATESTEERED CAPITALISM TRACES NOT ONLY TO ECONOMIC ADVISER LAURA TYSON AND THE WORK OF DEREK SHEARER THE SANTA MONICA SOCIALIST WHO MADE A BRIEF APPEARANCE IN THE CLINTON ADMINISTRATION BUT IN A LONGER SENSE TO OLDSTYLE DEMOCRATS GOING BACK TO THE NEW DEAL LESS KINDLY ONE COULD LINK THE IDEAS TO BENITO MUSSOLINI'S ECONOMIC TEAM AND OTHER NOTABLES ON THE INTERNATIONAL STAGE CONTEMPORARY NONSENSE OF THIS TYPE ISN'T LIMITED TO WASHINGTON VENTURE FUNDS ARE THE NEXT LOGICAL STEP FOR STATES THAT ARE PROACTIVELY PRO BUSINESS PROFESSED LIBERTARIAN BILL WELD WANTS TO GET MASSACHUSETTS'S TOES WET IN BIOTECH LOS ANGELES COUNTY WANTS TO BUILD AN ELECTRIC CAR IN THRIFTLAND THE NOTORIOUS FIRREA LEGISLATION ALLOWS THE FEDS TO GET PREFERRED STOCK IN SAVINGS AND LOANS PERMITTED TO STAY AFLOAT AND DON'T FORGET TRANSPORTATION SECRETARY FREDERICO PENA'S PUBLICPRIVATE SCHEME FOR HIGHSPEED RAIL WE'D FEEL SAFER IN A THRIFT REP COX CALLED THE HOUSE MEASURE THE JURASSIC PARK PROVISION MILLIONS OF DOLLARS FROM TAXPAYERS' POCKETS SPENT ON CLONING NEW INDUSTRIAL DINOSAURS THE REST OF THE WORLD MOVES TOWARD AMERICAN POLICIES WHILE IN THE ERA OF CLINTON WE DRIFT IN THEIR DIRECTION 9305240103 930524 CORRECTION A MAY 18 EDITORIAL PAGE STORY HANOI HILTON' SPANS THE DECADES MISSPELLED THE NAME OF AN AIDE TO SEN JOHN MCCAIN THE CORRECT SPELLING IS MARK SALTER 9305240101 930524 MEXICO'S US EXPORTS GAIN MEXICO CITY MEXICO'S TREASURY DEPARTMENT SAID EXPORTS TO THE US ROSE 157 IN MARCH FROM FEBRUARY RESULTING IN A 529 MONTHLY CONTRACTION IN MEXICO'S TRADE DEFICIT WITH THE US THE TREASURY SAID MEXICAN SALES TO THE US TOTALED 346 BILLION IN MARCH UP FROM 299 BILLION IN FEBRUARY US EXPORTS TO MEXICO IN MARCH TOTALED 376 BILLION LEAVING A NET MEXICAN DEFICIT OF 300 MILLION 9305240100 930524 JAPAN'S TRADE SURPLUS DROPS TOKYO JAPAN FOR THE FIRST 10 DAYS OF MAY HAD A TRADE SURPLUS ON THE BASIS OF GOODS PASSING CUSTOMS BUT BEFORE ADJUSTMENT FOR SEASONAL FACTORS OF 291 MILLION DOWN SHARPLY FROM THE 136 BILLION SURPLUS FOR THE YEAREARLIER PERIOD THE FINANCE MINISTRY REPORTED EXPORTS FELL 18 TO 448 BILLION COMPARED WITH 548 BILLION A YEAR EARLIER IMPORTS ROSE 18 TO 419 BILLION FROM 412 BILLION THE MINISTRY PROVIDED THE AVERAGE EXCHANGE RATE OF 11106 YEN TO THE DOLLAR FOR THE LATEST REPORTING PERIOD AS THE YEN FIRMED SUBSTANTIALLY FROM 13407 TO THE DOLLAR A YEAR EARLIER 9305240099 930524 DIVIDEND NEWS ANDREA ELECTRONICS TO MOVE UP DATE OF DIVIDEND PAYMENT NEW YORK ANDREA ELECTRONICS CORP WHOSE STOCK HAS SHOT UP 47 IN A WEEK SAID IT WOULD ACCELERATE THE PAYMENT OF ITS 5FOR1 STOCK DIVIDEND THE DIVIDEND WILL NOW BE PAID ON JUNE 2 INSTEAD OF JUNE 14 THE MOVE COMES AFTER THE AMERICAN STOCK EXCHANGE FORBADE INVESTORS FROM BUYING ANDREA ELECTRONICS STOCK ON MARGIN IN AN EFFORT TO TEMPER THE SPECULATIVE FEVER THAT HAS SENT THE STOCK SURGING RECENTLY IT IS THE FIRST TIME IN SEVEN YEARS THAT THE EXCHANGE HAS PROHIBITED INVESTORS FROM BUYING A STOCK WITH MONEY BORROWED FROM A BROKERAGE FIRM ANDREA ELECTRONICS WHICH OPENED FOR TRADING FRIDAY ON THE AMERICAN STOCK EXCHANGE AFTER BEING HALTED WEDNESDAY FELL SEVEN POINTS TO 86 JEFF GOSMAN CHIEF FINANCIAL OFFICER AT ANDREA ELECTRONICS DECLINED TO COMMENT ON WHY THE COMPANY PUSHED FORWARD THE DIVIDEND PAYMENT DATE THE PRESS RELEASE HAS TO STAND ON ITS OWN AT THE REQUEST OF THE AMERICAN STOCK EXCHANGE HE SAID JOAN ALLEN A SPOKESWOMAN FOR THE AMEX SAID THE MOVE TO ACCELERATE PAYMENT CAME AT THE SUGGESTION OF THE EXCHANGE WE ASKED THE COMPANY IF IT WOULD BE POSSIBLE TO MOVE THE DATE FORWARD TO ALLOW MORE STOCK TO COME INTO THE MARKETPLACE WHICH INCREASES LIQUIDITY AND GIVES INVESTORS THE OPPORTUNITY TO PURCHASE STOCK AT A MORE REASONABLE PRICE ANDREA ELECTRONICS HAS 508272 SHARES OUTSTANDING OVER HALF OF WHICH ARE OWNED BY THE ANDREA FAMILY ANALYSTS SAID AN INCREASE IN THE NUMBER OF SHARES OUTSTANDING WOULD ALSO HELP REDUCE VOLATILITY IN THE STOCK ON MAY 13 ANDREA ELECTRONICS DECLARED THE 5FOR1 STOCK DIVIDEND TO SHAREHOLDERS OF RECORD MAY 21 9305240098 930524 LAW ELECTRICIAN IS CLEARED OF CRIMINAL CHARGES IN GRAND MET CASE NEW YORK AN ELECTRICIAN WHO HELPED INSTALL A SECURITY SYSTEM AT GRAND METROPOLITAN PLC'S NEW JERSEY HEADQUARTERS AND HIS ACCOUNTANT WERE CLEARED OF ALL CRIMINAL CHARGES RELATED TO ALLEGED INSIDER TRADING IN THE BRITISH CONGLOMORATE'S 1988 TAKEOVER OF PILLSBURY CO IN ACQUITTING ROBERT FALBO AN ELECTRICIAN WHO NOW LIVES IN CARLSBAD CALIF AND ANTHONY CAPRICUSO A NEW JERSEY ACCOUNTANT THE FEDERAL JURY DELIVERED A BLOW TO THE US ATTORNEY'S OFFICE IN MANHATTAN THE ONE CHIEFLY RESPONSIBLE FOR OVERSEEING WALL STREET PROSECUTORS SAW THE CASE AS AN IMPORTANT TEST OF A SECURITIES RULE KNOWN AS 14E3 THAT MAKES IT A CRIME TO USE INSIDE INFORMATION WHATEVER ITS SOURCE TO TRADE ON A TENDER OFFER IN THE PAST CRIMINAL INSIDERTRADING CASES ALSO TYPICALLY INCLUDED ALLEGATIONS THAT THE DEFENDANT BREACHED A FIDUCIARY DUTY BY TAKING INFORMATION TO MAKE THE TRADES THE FALBO AND CAPRICUSO CASE WAS THE FIRST ONE BROUGHT BY THE OFFICE TO RELY SOLELY ON A VIOLATION OF RULE 14E3 DURING THE THREEWEEK TRIAL PROSECUTORS ATTEMPTED TO SHOW THAT MR FALBO GOT INSIDE INFORMATION WHEN HE WAS AN ELECTRICAL SUBCONTRACTOR INSTALLING SECURITY DOORS IN GRAND MET'S EXECUTIVE SUITE IN ORDER TO ALLOW SENIOR MANAGEMENT TALK IN SECRECY ABOUT THE PENDING TAKEOVER REGARDLESS OF WHAT OTHER SOURCES MR FALBO OR HIS FRIEND MR CAPRICUSO HAD ABOUT THE POSSIBLE TAKEOVER THE FACT THAT THEY HAD SECRET INFORMATION MADE THEIR TRADING A CRIME PROSECUTORS ARGUED BUT THE JURY SEEMED TO AGREE WITH DEFENSE LAWYERS WHO ARGUED THAT TOO MANY NEWS ARTICLES AND FINANCIAL COLUMNISTS SPECULATED ON THE TAKEOVER TO MAKE IT CERTAIN THE TWO MEN BASED THEIR TRADES ON SECRET INSIDE INFORMATION LARRY HORN A NEWARK NJ LAWYER WHO REPRESENTED MR CAPRICUSO SAID THE VERDICT SHOWS THAT ONCE THERE IS PUBLIC SPECULATION ABOUT A TAKEOVER IT IS DIFFICULT FOR PROSECUTORS TO PROVE A DEFENDANT HAD SECRET INFORMATION THE TWO MEN AND SEVERAL OTHER RELATIVES AND ASSOCIATES FROM NEW JERSEY STILL FACE CIVIL CHARGES RELATED TO THE CASE BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION 9305240097 930524 TRANSFER IS MULLED FOR FBI DIRECTOR ACCORDING TO RENO BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ATTORNEY GENERAL JANET RENO SAID ADMINISTRATION OFFICIALS ARE CONSIDERING WHETHER TO TRANSFER FBI DIRECTOR WILLIAM SESSIONS WHO HAS BEEN ACCUSED OF ETHICAL VIOLATIONS INTO ANOTHER FEDERAL JOB PEOPLE HAVE DISCUSSED THAT SHE SAID IN AN INTERVIEW BUT SHE SAID SHE DIDN'T KNOW THE LIKELIHOOD OF THAT OCCURRING TEN WEEKS AFTER DECLARING THE STATUS OF THE FEDERAL BUREAU OF INVESTIGATION DIRECTOR A TOP PRIORITY MS RENO MET BRIEFLY FRIDAY WITH MR SESSIONS TO DISCUSS THE ALLEGATIONS AGAINST HIM FOLLOWING THE MEETING WHICH ALSO INCLUDED MR SESSIONS'S LAWYERS AND DEPUTY ATTORNEY GENERALDESIGNATE PHILIP HEYMANN MR SESSIONS ISSUED A STATEMENT ASSERTING HE HAD CONFIDENCE THAT ATTORNEY GENERAL RENO WOULD FULLY AND FAIRLY CONSIDER ALL THE ISSUES THROUGH A SPOKESMAN MS RENO SAID I'LL REVIEW THE MATTER MR SESSIONS IS 5 1/2 YEARS THROUGH HIS 10YEAR TERM HE CAN BE REMOVED FROM HIS POST ONLY BY THE PRESIDENT THE DELAY IN REACHING A DECISION ON MR SESSIONS'S LEADERSHIP OF THE FBI MAY BE RELATED TO MS RENO'S DESIRE TO HAVE MR HEYMANN'S VIEWS ON THE ISSUE BEFORE SHE MAKES A RECOMMENDATION TO PRESIDENT CLINTON MR HEYMANN'S NOMINATION LIKELY WILL BE CONFIRMED THIS WEEK BY THE SENATE AS DEPUTY ATTORNEY GENERAL HE WOULD HAVE AUTHORITY OVER THE BUREAU BUT ANY DELAY WORKS TO THE BENEFIT OF MR SESSIONS BECAUSE IT REINFORCES THE VIEW THAT HIS DISMISSAL ISN'T NECESSARY FOR THE BUREAU TO FUNCTION SMOOTHLY ON A MORE PERSONAL LEVEL THE LONGER MR SESSIONS 62 YEARS OLD REMAINS IN GOVERNMENT SERVICE THE BIGGER HIS PENSION WOULD GROW THE MEETING WITH MS RENO COMES AS THE FBI IS INVESTIGATING ALLEGATIONS OF FINANCIAL IRREGULARITIES IN THE WHITE HOUSE TRAVEL OFFICE AN FBI SPOKESMAN SAID THE BUREAU TODAY WILL BEGIN REVIEWING AN AUDIT OF THE TRAVEL OFFICE COMPLETED SATURDAY BY A PRIVATE ACCOUNTING FIRM WHILE MANY BELIEVE MR SESSIONS HAD LAPSES IN JUDGMENT SOME DEMOCRATS INITIALLY SPECULATED THE ACCUSATIONS AGAINST HIM WERE LINKED TO ALLEGED RESENTMENT BY MR BARROVER MR SESSIONS'S STATEMENTS LAST FALL REGARDING AN FBI INQUIRY INTO THE JUSTICE DEPARTMENT'S HANDLING OF THE BANCA NAZIONALE DEL LAVORO INVESTIGATION THE BNL SCANDAL INVOLVED A 4 BILLION BANK FRAUD IN WHICH SOME MONEY WAS USED TO FINANCE SECRET ARMS SALES TO IRAQ MR BARR ADAMANTLY DENIED THAT THERE WAS ANY RESENTMENT OR ANY LINK BETWEEN BNL AND THE ACCUSATIONS AGAINST MR SESSIONS ACCORDING TO THE REPORT MR SESSIONS AMONG OTHER THINGS USED A SHAM ARRANGEMENT TO AVOID PAYING INCOME TAXES ON THE VALUE OF HIS GOVERNMENTSUPPLIED DOORTODOOR TRANSPORTATION MR SESSIONS ACKNOWLEDGED HE CLAIMED A LAWENFORCEMENT EXEMPTION ON THE BASIS OF AN UNLOADED GUN STOWED IN A BRIEFCASE IN THE TRUNK OF THE CAR HE SAID HE HAS SINCE PAID THE TAXES IN QUESTION MISUSED GOVERNMENT AIRCRAFT FOR PERSONAL BUSINESS MR SESSIONS SAID HE DID VISIT RELATIVES DURING SOME BUSINESS TRIPS BUT REJECTED AN ALLEGATION THAT HE HAD PILOTS MAKE A SPECIAL STOP SO HE COULD SEE HIS FATHER IN ARKANSAS USED NEARLY 10000 IN GOVERNMENT FUNDS TO CONSTRUCT A FENCE AROUND HIS HOME THAT DETRACTED FROM RATHER THAN ENHANCED HIS SECURITY MR SESSIONS SAID THE FENCE IS CONSISTENT WITH SECURITY NEEDS AND THAT MOST OF THE MONEY PAID FOR AUTOMATIC GATES THAT AREN'T IN DISPUTE 9305240096 930524 MANAGER'S JOURNAL NOT JUST ANOTHER QUALITY SNOW JOB BY LUTHER P COCHRANE ON A FRIDAY AFTERNOON IN 1987 THE DOOR TO THE CONFERENCE ROOM AT A NASHVILLE HOTEL OPENED AND TWO OF OUR LOCAL EXECUTIVES ENTERED TO JOIN OUR ANNUAL LONGRANGE PLANNING CONFERENCE THE NEW ARRIVALS DIDN'T LOOK THAT GOOD WHEN THEY FINISHED WITH THEIR REPORT NOBODY ELSE IN THE ROOM LOOKED VERY GOOD EITHER THE TWO HAD JUST RETURNED FROM A MEETING AT HOSPITAL CORPORATION OF AMERICA HCA WHERE THE HALFDOZEN CONSTRUCTION COMPANIES EMPLOYED BY HCA INCLUDING OUR OWN GOT SOME GRIM NEWS HCA SAID IT WAS CUTTING BACK ON ITS CONSTRUCTION PROGRAM AND WANTED TO DO BUSINESS WITH JUST TWO COMPANIES A PRIMARY CONTRACTOR THAT WOULD GET ABOUT TWOTHIRDS OF THE WORK AND A SECONDARY CONTRACTOR THAT WOULD GET THE REST BUT WHAT MADE OUR FELLOWS ESPECIALLY GLUM WAS THE WAY THE DECISION WAS GOING TO BE MADE HCA OFFICIALS SAID THAT IN ADDITION TO THE TRADITIONAL CONSTRUCTION SERVICE BENCHMARKS OF COST SCHEDULE AND PERSONNEL THEY WERE GOING TO GIVE EQUAL WEIGHT TO SOMETHING WE HADN'T HEARD OF BEFORE IN THE CONSTRUCTION INDUSTRY COMMITMENT TO TOTAL QUALITY MANAGEMENT PEOPLE IN THE MEETING HAD ONLY THE VAGUEST IDEA OF WHAT TOTAL QUALITY MANAGEMENT ENCOMPASSED OR HOW ITS PRINCIPLES MIGHT BE ADAPTED TO THE CONSTRUCTION INDUSTRY NEVERTHELESS HCA REPRESENTED A VERY HIGH PERCENTAGE OF THE WORK OUR NASHVILLE OFFICE WAS DOING AND HCA WAS HEAVILY INVOLVED IN SETTING UP ITS OWN TQM PROCESS SO DESPITE OUR IGNORANCE AT ABOUT 330 IN THE AFTERNOON OF NOV 13 1987 WE DECIDED TO EMBRACE TOTAL QUALITY MANAGEMENT ONE OF THE HALLMARKS OF TQM IS MEASURING PERFORMANCE THEN USING THOSE MEASUREMENTS TO IMPROVE EFFICIENCY THAT WORKS WELL IN MANUFACTURING WHERE THERE ARE REPETITIVE ACTIONS OUR CHALLENGE WAS TO APPLY THOSE PRINCIPLES TO CONSTRUCTION WHERE EACH JOB IS DIFFERENT AND WHERE MANY COMPANIES MUST PULL TOGETHER TO GET THE JOB DONE OVER THE YEARS WE HAVE CREATED A PROCESS THAT INVOLVES ESSENTIALLY TAKING TQM TO ANOTHER LEVEL INSTEAD OF TRYING TO FIND ONE SET OF QUALITY INDICATORS THAT FITS EVERY JOB WE DECIDED TO CREATE A TOTAL QUALITY PLAN FOR EACH NEW JOB WORKING TOGETHER WITH THE ARCHITECTS ENGINEERS OWNERS AND MAJOR SUBCONTRACTORS WE CALL IT JOBSITE QUALITY PLANNING WE LITERALLY PUT EVERYONE TOGETHER IN A ROOM AND DON'T LET THEM OUT UNTIL THEY HAVE AGREED UPON A WRITTEN MISSION STATEMENT FOR THE JOB AND UPON TANGIBLE AND MEASURABLE ACTIONS THAT WILL RESULT IN A SUCCESSFUL PROJECT SUCH AGREEMENTS MIGHT INCLUDE THE FREQUENCY WITH WHICH ARCHITECTS AND ENGINEERS WILL VISIT THE JOB THE MANNER OF RESOLVING DISPUTES AMONG SUBCONTRACTORS COORDINATION AMONG MECHANICAL ELECTRICAL AND PLUMBING CONTRACTORS THE METHOD BY WHICH PROGRESS WILL BE MEASURED THE PROCESSES BY WHICH CRUCIAL INFORMATION WILL FLOW AND OTHER ITEMS WE HAVE NOW USED JOBSITE QUALITY PLANNING ON MORE THAN 40 PROJECTS INCLUDING INDEPENDENCE SQUARE IN WASHINGTON DC WITH A CONSTRUCTION VALUE OF MORE THAN 400 MILLION SOME INTERESTING PATTERNS HAVE EMERGED VIRTUALLY EVERY COMPANY WITH WHOM WE HAVE USED JQP HAS AWARDED US ADDITIONAL BUSINESS WE HAVE NOT HAD A SINGLE CONSTRUCTIONRELATED LAWSUIT ARISE FROM A JQP PROJECT WE KNOW THAT CONSTRUCTION HAS PROVIDED AN ANNUITY FOR LAWYERS FOR GENERATIONS SO REDUCING THE NUMBER OF LAWSUITS HAS DRAMATICALLY IMPROVED OUR BOTTOM LINE COMPANYWIDE OUR LEGAL EXPENSE IS DOWN MORE THAN 50 AND OUR NUMBER OF CASES MORE THAN 60 FROM A PEAK IN THE LATE 1980S WE HAVE MADE MONEY EACH YEAR DESPITE THE TURMOIL IN OUR INDUSTRY THE RELATIONSHIPS WE HAVE DEVELOPED USING JQP HAVE ALLOWED US TO WEATHER THE CRISIS AMONG REAL ESTATE DEVELOPERS ONE OF THE MAIN SOURCES OF OUR BUSINESS IN THE 1970S AND 1980S PERHAPS MOST IMPORTANT OWNERS SUBCONTRACTORS ARCHITECTS AND ENGINEERS TELL US THAT IT TRULY MAKES FOR A BETTER JOB OUR QUALITY PROGRAMS ARE NOT PENICILLIN THEY WON'T MIRACULOUSLY CURE WHAT AILS THE CONSTRUCTION INDUSTRY OR ANY OTHER INDUSTRY FOR THAT MATTER NOR ARE THEY CHEAP WE INITIALLY THOUGHT IMPLEMENTING A QUALITY PROCESS WOULD COST ABOUT 2 MILLION TOTAL WE PASSED THAT FIGURE LONG AGO OUR CONTINUING INVESTMENT IS ABOUT 500000 A YEAR LARGELY SPENT ON PERSONNEL TRAINING AND TRAVEL BUT THE INVESTMENT IN TIME AND MONEY HAS BEEN MORE THAN RETURNED THROUGH INCREASED MARKET SHARE AND DECREASED MISTAKES BOTH OF WHICH WE ATTRIBUTE TO THE QUALITY PROCESS ALTHOUGH DEVOTEES OF QUALITY PRINCIPLES CAN COME AT YOU WITH MESSIANIC ZEAL THAT'S NOT ALWAYS WELL RECEIVED DURING ONE OF OUR QUALITY PLANNING SESSIONS WE STEPPED ON THE TOES OF AN ARCHITECTURAL FIRM WITH WHICH WE HAD WORKED FOR YEARS TRADITIONALLY THE ARCHITECT RUNS THE SHOW AND THE CONTRACTOR DOES WHAT HE'S TOLD WE CAME INTO THIS MEETING HOWEVER FILLED WITH THE RIGHTEOUSNESS OF OUR NEW RELIGION AND AN EAGERNESS TO SHARE THE NEW PRINCIPLES WE HAD LEARNED THE ARCHITECTS THOUGHT WE WERE GOING TO USURP THEIR ROLE IN DEFINING THE PROJECT AND ULTIMATELY COME BETWEEN THEM AND THEIR CLIENT MATTERS SMOOTHED OUT WHEN WE WERE ABLE TO SHOW THAT WHAT WE PROPOSED WOULD INCREASE BENEFITS FOR EVERYONE INVOLVED ANOTHER CHALLENGE FOR US WAS GETTING PEOPLE AT ALL LEVELS OF OUR COMPANY TO BUY INTO THE CONCEPT INITIAL RESISTANCE RANGED FROM DIVISION MANAGERS WHO SAW HUGE EXPENDITURES WITH NO PAYBACK TO JOBSITE WORKERS WHO JUST DIDN'T UNDERSTAND A SUPERINTENDENT IN OUR NASHVILLE DIVISION CAPTURED THE ESSENCE OF THE RESISTANCE DURING ONE MEETING DO YOU MEAN TO TELL ME EVERYTHING WE HAVE BEEN DOING UP 'TIL NOW AIN'T BEEN WORTH NOTHING HE INTERRUPTED THE MEETING TO ASK AND NOW WE'RE GOING TO HAVE QUALITY HE INADVERTENTLY HELPED US FOCUS ON A KEY ASPECT OF IMPLEMENTING QUALITY PROGRAMS SEEKING TO IMPROVE FUTURE WORK THROUGH QUALITY PROCESSES IS NOT A REPUDIATION OF PAST WORK SOME OF THE BEST ADVICE WE RECEIVED EARLY ON AND WE ASKED FOR AND GOT A LOT CAME FROM TOM MALONE PRESIDENT OF MILLIKEN & CO HE TOLD US TO SUPPORT THE HECK OUT OF THE EARLY ADOPTEES IN THE COMPANY MAKE HEROES OUT OF THEM FOR THEIR SUCCESSES AND THAT THE DOUBTERS WOULD EITHER FOLLOW OR BE LEFT BEHIND THERE ARE PEOPLE IN SOME CORNERS OF OUR COMPANY WHO PREFER DOING BUSINESS THE OLD WAY BUT THERE ARE FEWER OF THOSE EACH YEAR AND I AM OCCASIONALLY SURPRISED BY THE LEVEL OF COMMITMENT IN PEOPLE I WOULD HAVE THOUGHT WOULD SCORN THIS NEW AGE WAY OF BUILDING NOT LONG AGO I ATTENDED A PRESENTATION WHERE WE WERE TOUTING OUR JOBSITE QUALITY PLANNING AS ONE OF THE REASONS WE SHOULD GET THE JOB THE PRESENTATION TEAM INCLUDED A 40YEAR VETERAN OF THE INDUSTRY A CONSTRUCTION WORKER AS CRUSTY AS A CEMENTFINISHER'S BOOTS ABOUT HALFWAY THROUGH THE PRESENTATION ONE OF THE POTENTIAL CLIENTS TURNED TO THIS VETERAN SUPERINTENDENT AND IN TYPICAL CONSTRUCTIONSITE LANGUAGE ASKED IF THIS STUFF REALLY WORKS WITHOUT A MOMENT'S HESITATION OUR SUPERINTENDENT REPLIED IN THE AFFIRMATIVE WITH LANGUAGE A BIT TOO SPICY FOR THIS NEWSPAPER I KNEW THEN THAT JOBSITE QUALITY PLANNING HAD REALLY BECOME A PART OF OUR CULTURE A KEY TO OUR FUTURE AND A VEHICLE FOR GETTING BETTER WHERE IT COUNTS MOST ON THE JOB MR COCHRANE IS CHAIRMAN AND CEO OF MCDEVITT STREET BOVIS A CONSTRUCTION SERVICES COMPANY BASED IN CHARLOTTE NC 9305240095 930524 WORLD MARKETS STOCK STRATEGISTS SEE MOST EUROPEAN BOURSES COOLING THROUGH SUMMER AS REALITIES SET IN BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LANGUID SLUGGISH UNINSPIRED AS THE TEMPERATURE RISES ACROSS EUROPE THE REGION'S STOCK MARKETS INCREASINGLY SEEM TO HAVE COME DOWN WITH AN EARLY CASE OF THE SUMMER DOLDRUMS EQUITY STRATEGISTS ARE STARTING TO WONDER NOT WHETHER THEY SHOULD GO ON A SHOPPING SPREE BUT RATHER SELL THE MARKET SHORT BETTING ON DECLINES OR JUST GO ON THE DEFENSIVE AND INTO LOWRISK STOCKS THINGS HAVE PRETTY MUCH PLAYED THEMSELVES OUT SAID ANDREW BELL EUROPEAN STRATEGIST AT BARCLAYS DE ZOETE WEDD IN LONDON IT'S HARD TO SEE MUCH POTENTIAL IN THE SHORT TERM CERTAINLY OVER THE PAST 4 1/2 MONTHS MANY MARKETS HAVE PUT IN PERFORMANCES THAT WOULD SATISFY THE AVERAGE INVESTOR FOR A WHOLE YEAR OR LONGER PANEUROPEAN STOCK INDEXES ARE UP ABOUT 7 SINCE JAN 1 THOSE INDEXES WHICH ARE MADE UP MAINLY OF EUROPE'S LARGEST COMPANIES DON'T TAKE INTO CONSIDERATION STOCKS IN THE REGION'S BESTPERFORMING BOURSES NOT COINCIDENTALLY EUROPE'S STOCKMARKET STARS ARE TO BE FOUND IN COUNTRIES THAT CUT INTEREST RATES SHARPLY AFTER LAST SEPTEMBER'S CURRENCY CRISIS FORCED A SERIES OF DEVALUATIONS HELSINKI'S HEX INDEX IS UP 47 SO FAR THIS YEAR ITS SCANDINAVIAN NEIGHBORS HAVEN'T DONE BADLY EITHER THE OSLO COMPOSITE INDEX HAS GAINED ALMOST 28 STOCKHOLM'S AFFARSVARLDEN INDEX IS ABOUT 18 HIGHER AND COPENHAGEN'S STOCK EXCHANGE INDEX HAS CLIMBED ABOUT 16 IN IRELAND WHICH DEVALUED ITS CURRENCY EARLIER THIS YEAR DUBLIN'S ISEQ INDEX IS UP 25 ON THE YEAR WHILE MILAN'S STOCK INDEX HAS ADDED 23 AND MADRID'S GENERAL INDEX HAS PUT ON 19 MR BELL OF BARCLAYS DE ZOETE WEDD BELIEVES THAT STOCK MARKET SENTIMENT IS SO GEARED UP FOR CONTINUAL INTERESTRATE REDUCTIONS THIS YEAR THAT THERE IS TREMENDOUS ROOM FOR DISAPPOINTMENT RATE CUTS ARE A NECESSARY PREVENTION TO KEEP MARKETS FROM CRASHING NOT SOME SORT OF A BONUS THAT WOULD PUSH THEM INTO THE STRATOSPHERE HE SAID MR BELL SAID THAT GIVEN THE OPTIMISM ABOUT EASIER MONETARY POLICY ON THE CONTINENT AND THE RATHER BLOATED CURRENT STOCK PRICES BOTH FRANCE AND GERMANY COULD DROP 10 OVER THE NEXT TWO OR THREE MONTHS THE REASON THAT THE GERMANS HAVE TO EASE IS THAT THE RECESSION IS SO BAD WHICH IS NOT VERY BULLISH FOR EQUITIES GUENTER KIRCHHAIN HEAD OF INSTITUTIONAL INVESTMENT AT DEUTSCHE BANK IN DUSSELDORF SAID HE ISN'T OPTIMISTIC AS ECONOMIC INDICATORS HAVE TURNED DOWN AND WE SEE POTENTIAL FOR A STOCK MARKET CORRECTION NOT JUST IN GERMANY BUT ACROSS EUROPE THROUGH AUGUST BUT IN SWITZERLAND TWO FUND MANAGERS ARE BULLISH ON SWISS EQUITIES MOST OF THE BIG SWISS STOCKS ARE INSULATED TO A CERTAIN EXTENT FROM THE DOWNTURN SAID HANS KAUFMANN HEAD OF STRATEGY AT BANK JULIUS BAER IN ZURICH AND THE FINANCIAL SECTOR SHOULD DO VERY WELL AS INTEREST RATES DECLINE PHILIP LONG A STRATEGIST AT CBITDB UNION BANCAIRE PRIVEE IN GENEVA AGREES WITH THE GROWING CONSENSUS AGAINST EUROPEAN SHARES THE FALLINGINTERESTRATE FACTOR HAS MORE OR LESS PLAYED ITSELF OUT HE SAID WE'RE NOW GETTING BACK TO REALITY ON EARNINGS GROWTH HE DESCRIBED CBITDB AS LESS NEGATIVE ON SWISS EQUITIES COMPARED WITH OTHER EUROPEAN SHARES AS THE MARKET IS NOW A BARGAIN STILL STRAGTEGISTS ADVISED CAUTION IN COMING MONTHS TURNING ATTENTION AWAY FROM COUNTRY SELECTION AND TOWARD STOCK AND SECTOR SELECTION SUCH AS TELECOMMUNICATIONS BASED ON GROWING DEMAND FROM DEVELOPING COUNTRIES AMONG THE MOST PESSIMISTIC ARE ANALYSTS AT JP MORGAN IN LONDON WHO RECENTLY LOWERED THEIR FORECAST OF GROWTH IN GERMAN GROSS DOMESTIC PRODUCT FOR THIS YEAR TO MINUS25 SHARPLY LOWER THAN THE MARKET CONSENSUS OF 16 AND THEY EXPECT ZERO GROWTH IN 1994 THAT'S GOING TO LEAD TO QUITE A DOWNWARD REVISION IN EARNINGS SAID MARK HOWDLE THE BANK'S EUROPEAN STRATEGIST HE EXPECTS SIZABLE CUTS IN GERMAN INTEREST RATES THIS YEAR LEADING TO LOWER VALUES OF EUROPE'S MAJOR CURRENCIES AGAINST THE US DOLLAR IN TURN BOOSTING EXPORTERS BUT NOT MUCH ELSE BRITISH STOCKS SEEM TO BE PROVIDING EUROPE'S ONE RAY OF HOPE FOR THE COMING THREE MONTHS OR SO LONDON'S FTSE 100STOCK INDEX HAS RISEN A PALTRY 1 SINCE JAN 1 FUND MANAGEMENT GROUPS INCREASINGLY SEE AN IMPROVING BRITISH ECONOMY AND INTEND TO INCREASE THEIR INVESTMENT IN BRITISH EQUITIES TOKYO STOCKS ADVANCED 1 FRIDAY ON A BUYING SPREE IN LARGECAPITALIZATION ISSUES LONDON STOCKS WEAKENED FOR THE FOURTH SESSION IN A ROW IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 5040 POINTS THURSDAY CLIMBED 22708 TO 2055747 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 400 MILLION SHARES COMPARED WITH 3493 MILLION SHARES ON THURSDAY ADVANCERS ISSUES TROUNCED LOSERS 765250 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SLIPPED 363 POINTS THURSDAY RALLIED 1879 OR 12 TO 161312 TOKYO PRICES GOT A LATE BOOST FROM BASKET ARBITRAGERS A RESURGENT FUTURES MARKET AND EXPECTATIONS FOR HEALTHY GROWTH IN THE MONEY SUPPLY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10564 DOWN 003 REFLECTING DECREASES IN THE AMERICAS AND EUROPE AND AN INCREASE IN THE ASIA/PACIFIC REGION STEEL STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11566 UP 281 OR 249 WITH MAGONA OF ITALY POSTING A 714 GAIN IN ITS LOCAL CURRENCY SAVINGS AND LOAN STOCKS TRAILED AT 9641 DOWN 282 OR 284 WITH GREAT WESTERN FINANCIAL OF THE US SLIDING 448 IN US CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 46 POINTS TO 28122 LEAVING IT DOWN 348 POINTS FOR THE WEEK THE FT 30STOCK INDEX EDGED UP 05 POINT TO 21874 VOLUME WAS 6992 MILLION SHARES COMPARED WITH 7008 MILLION SHARES A DAY EARLIER THE DROP CAME AS INVESTORS CLOSED POSITIONS ON THE FINAL DAY OF THE TWOWEEK TRADING ACCOUNT PARTICIPANTS ALSO WERE PESSIMISTIC ABOUT BRITISH CORPORATE EARNINGS AND THE ECONOMIC OUTLOOK FRANKFURT SHARE PRICES FELL BROADLY IN MUTED DEALINGS AS MANY INVESTORS MADE A FOURDAY WEEKEND OF THURSDAY'S ASCENSION DAY HOLIDAY THE DAX 30STOCK INDEX DROPPED 682 POINTS TO 161059 TAKING THE WEEK'S DECLINE TO 2392 HONG KONG SHARES ROSE TO A NEW PEAK ON POLITICAL HOPES AS SINOBRITISH TALKS ON THE COLONY'S POLITICAL FUTURE WERE UNDER WAY IN BEIJING EVEN SO PROFITTAKING ERODED MORE THAN HALF THE INITIAL GAINS SEOUL STOCKS POSTED THEIR FIFTH CONSECUTIVE GAIN 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 9305240094 930524 POLITICS & POLICY US AND ALLIES ADOPT A TIMID BOSNIA STRATEGY PLAN TO CARVE OUT HAVENS FOR MUSLIMS IS UNLIKELY TO END BRUTAL CONFLICT BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US AND ITS ALLIES HAVE AGREED TO A LESSTHANBOLD STRATEGY FOR BOSNIA THAT SHOULD SLOW THE KILLING BUT IS UNLIKELY TO REVERSE ETHNIC CLEANSING BY SERBS OR SETTLE THE BLOODY CONFLICT AFTER THE UNITED NATIONS SECURITY COUNCIL APPROVES THE PLAN PERHAPS AS EARLY AS THIS WEEK A MULTINATIONAL PEACEKEEPING FORCE WOULD BE CHARGED WITH PROTECTING SIX OR MORE HAVENS FOR MUSLIMS US GROUND TROOPS WOULDN'T JOIN THAT FORCE US OFFICIALS SAID US AIR POWER HOWEVER COULD BE CALLED ON TO PROTECT THE PEACEKEEPERS BUT NOT THE HAVENS ANY HOPES OF TURNING BACK SERB TERRITORIAL GAINS OR IMPOSING A LASTING POLITICAL SETTLEMENT WOULD BE LEFT TO DIPLOMATIC AND ECONOMIC PRESSURES BUT MONTHS OF SUCH PRESSURES AND WESTERN TEMPORIZING ABOUT MILITARY ACTION HAVE LEFT THE BOSNIAN SERBS AND THEIR PATRONS IN SERBIA DEFIANT AND CONTEMPTUOUS THIS LATEST RETREAT IS LIKELY TO REINFORCE THOSE FEELINGS REACTION FROM BOSNIA IS PERHAPS THE BEST MEASURE OF THE PLAN AND ITS LIKELY OUTCOME BOSNIAN MUSLIM PRESIDENT ALIJA IZETBEGOVIC BITTERLY REJECTED THE PLAN YESTERDAY SAYING IT WAS TOTALLY UNACCEPTABLE AND REWARDED GENOCIDE BOSNIAN SERB LEADER RADOVAN KARADZIC IN A TELEPHONE INTERVIEW WITH REUTERS NEWS AGENCY CALLED THE PLAN REALISTIC ADDING THAT PRESIDENT CLINTON WAS GOING TO BE A GREAT PRESIDENT FOR REFUSING TO GET DRAGGED INTO A BOSNIAN CIVIL WAR EVEN AS SECRETARY OF STATE WARREN CHRISTOPHER MET WITH HIS COUNTERPARTS FROM BRITAIN FRANCE RUSSIA AND SPAIN IN WASHINGTON ON SATURDAY MUSLIM AND SERB FORCES IN AND AROUND THE BOSNIAN CAPITAL OF SARAJEVO TRADED FIERCE ARTILLERY AND MORTAR FIRE FOR SEVEN HOURS LEAVING AT LEAST 15 PEOPLE DEAD AND MORE THAN 100 WOUNDED MEANWHILE SERB LEADERS APPEARED TO WITHDRAW AN OFFER TO ALLOW INTERNATIONAL SANCTIONS MONITORS ALONG THE SERBIABOSNIA BORDER ONE OF THE NEW PRESSURES SPECIFIED IN SATURDAY'S AGREEMENT PRESIDENT CLINTON WHO TRIED AND FAILED TO PERSUADE US ALLIES TO TAKE STRONGER MILITARY ACTION IN BOSNIA OFFERED TEPID PRAISE FOR THE AGREEMENT AT LEAST WE'RE TOGETHER WITH THE ALLIES AGAIN HE SAID MR CLINTON LATER ADDED THE AMERICAN PEOPLE SHOULD BE REASSURED THAT WE HAVE LIMITED THE POSSIBILITY OF QUAGMIRE AND STRENGTHENED THE POSSIBILITY OF ENDING ETHNIC CLEANSING AND THE POSSIBILITY OF LIMITING THE CONFLICT THE STRATEGY HOWEVER COULD GET MR CLINTON OUT OF A TOUGH POLITICAL SPOT AT LEAST FOR A WHILE SENATE MINORITY LEADER ROBERT DOLE R KAN ATTACKED THE PLAN FOR OFFERING LITTLE IF ANY HOPE OF ENDING THE WAR IN BOSNIA BUT HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO IN AN APPEARANCE ON CNN'S NEWSMAKER SUNDAY PRAISED THE PRESIDENT FOR WORKING WITH THE ALLIES AND NOT JUST JUMPING IN DOING SOMETHING PRECIPITOUS MOST AMERICANS REMAIN WARY OF ANY DEEPER US MILITARY INVOLVEMENT IN THE BALKANS IF BOSNIA IS STABILIZED WITH ONLY MINIMAL US MILITARY INVOLVEMENT MR CLINTON COULD GET BACK TO HIS FALTERING DOMESTIC AGENDA AND IF THE EUROPEAN PLAN SHOULD FAIL MR CLINTON WOULD STILL HAVE HIS DIGNITY AND HIS OWN PREFERRED STRATEGY TO FALL BACK ON SATURDAY'S ANNOUNCEMENT DELIBERATELY LEFT OPEN OPTIONS FOR NEW AND TOUGHER MEASURES FOR ALL THAT US OFFICIALS ARE STILL LEERY OF THE APPROACH IN THE PAST THEY HAVE PUBLICLY CRITICIZED THE HAVENS APPROACH AS UNJUST TO THE MUSLIMS AND PRIVATELY LIKENED THEM TO INTERNATIONALLY SANCTIONED GHETTOS OFFICIALS HAVE ALSO WARNED THAT THE STRATEGY PROVIDES NO CLEAR EXIT AND COULD TRAP PEACEKEEPERS INTO A DECADESLONG COMMITMENT MUCH LIKE CYPRUS WHERE UN PEACEKEEPERS HAVE BEEN SEPARATING COMBATANTS FOR 20 YEARS PROTECTING THE HAVENS COULD ALSO PROVE TO BE DIFFICULT FOR THE PEACEKEEPERS WHO WOULD ALSO BE CHARGED WITH ASSURING DELIVERIES OF FOOD AND MEDICAL SUPPLIES TO THEM AND THE LARGER THE LOGISTICAL SUPPLY CHAIN US MILITARY PLANNERS SAID THE GREATER THE MILITARY VULNERABILITY YOU'RE SIGNING YOURSELF UP FOR ENORMOUS RESPONSIBILITY WARNED ONE PENTAGON OFFICIAL AND ADM DAVID JEREMIAH VICE CHAIRMAN OF THE JOINT CHIEFS OF STAFF SAID RECENTLY THAT TO ENSURE SAFETY WITHIN THE HAVENS SERB TROOPS AND ARTILLERY EMPLACEMENTS WOULD HAVE TO BE PUSHED BACK AT LEAST 10 MILES FROM THE BORDERS OF THE HAVENS THAT PROBABLY WOULD REQUIRE A MILITARY UNDERTAKING FAR GREATER THAN NOW CONTEMPLATED EVEN MORE WORRISOME IS THE DEGREE TO WHICH CREATING HAVENS COULD PULL PEACEKEEPERS INTO THE CONFLICT THE HAVENS COULD QUICKLY TURN INTO SANCTUARIES FOR MUSLIM FIGHTERS GIVING THE SERBS EVEN MORE INCENTIVE TO ATTACK WITH THE PEACEKEEPERS CAUGHT IN THE MIDDLE FOR NOW MOST OF THESE HEADACHES WOULD BE LEFT TO THE EUROPEANS WHO WOULD MAN THE PEACEKEEPING FORCES IF THE SERBS DECIDE TO ATTACK THE US COULD FIND IT HARD TO KEEP ITS PROMISE OF LIMITED AIR PROTECTION US MILITARY PLANNERS MEANWHILE CONTINUE TO RAISE SERIOUS DOUBTS ABOUT THE EFFECTIVENESS OF EVEN THE MOST SOPHISTICATED US AIR POWER TO EITHER SILENCE SERB ARTILLERY OR TURN BACK A FULLSCALE SERB OFFENSIVE THOMAS E RICKS CONTRIBUTED TO THIS ARTICLE 9305240093 930524 LETTERS TO THE EDITOR A STRUGGLE AGAINST EUROCENTRISM WHATEVER HER SUBJECTIVE RESPONSE TO A LECTURE GIVEN BY DR NOT MR YOSEF BENJOCHANNAN AT WELLESLEY COLLEGE MARY LEFKOWITZ'S AFROCENTRISTS WAGE WAR ON ANCIENT GREEKS EDITORIAL PAGE APRIL 7 MISSTATES THE GOAL OF AFROCENTRIC SCHOLARSHIP TO THE EXTENT THAT A WAR IS BEING WAGED IT IS NOT AGAINST ANCIENT CULTURES BUT AGAINST A TRADITION OF EUROCENTRIC SCHOLARSHIP WITH ITS ROOTS IN SUCH ENLIGHTENMENT NOTIONS AS DAVID HUME'S CONTENTION THAT THERE WAS NEVER A CIVILIZED NATION OF ANY OTHER COMPLEXION THAN WHITE OF NATIONAL CHARACTERS 1748 AND GWF HEGEL'S PRONOUNCEMENT THAT AFRICA IS NO HISTORICAL PART OF THE WORLD THAT HISTORICAL MOVEMENTS WITHIN IT THAT IS THE NORTHERN PART BELONG TO THE ASIATIC OR EUROPEAN WORLD THE PHILOSOPHY OF HISTORY 1813 WHETHER EUROPEAN HISTORIANS AND PHILOSOPHERS HAVE BANDED TOGETHER BY DESIGN OR HAVE YIELDED TO A COMMON SUSCEPTIBILITY TO RACIST FANTASY THE RESULT IS A LEGACY OF FLAWED SCHOLARSHIP WITH RESPECT TO AFRICA AND ITS CONTRIBUTIONS TO HUMAN CULTURE MS LEFKOWITZ IS ENTITLED TO JUST LAUGH AND FORGET ABOUT HISTORIANS SUCH AS DR BENJOCHANNAN WITH WHOM SHE FINDS FAULT BUT CHARACTERIZING PROPONENTS OF AFROCENTRISM AS HISTORIANS WITH PARANOID ACCOUNTS OF ANCIENT HISTORY IS NOT A RESPONSE THAT CAN BE TAKEN SERIOUSLY EQUALLY IRRESPONSIBLE IS THE IMPLICATION THAT IT IS A TENET OF AFROCENTRISM THAT JEWS WERE PRIMARILY RESPONSIBLE FOR THE 19TH CENTURY SLAVE TRADE THE ATLANTIC SLAVE TRADE WAS OPERATED BY NATIONS THROUGHOUT EUROPE FROM THE 15TH THROUGH THE 19TH CENTURIES THERE IS MORE THAN ENOUGH SHAME TO SHARE FEW IN TODAY'S UNIVERSITY DARE POINT OUT THAT AFROCENTRIST SCHOLARSHIP IS DISPROVEN MANY TIMES OVER BY THE EVIDENCE THE FEW WHO DO ARE CALLED RACISTS IF THEY'RE WHITE AND UNCLE TOMS IF THEY'RE BLACK MS LEFKOWITZ IS TO BE PRAISED FOR HER COURAGE IN EXPOSING THIS SCANDAL BUT ON ONE POINT HER IRONY COULD EASILY BE MISUNDERSTOOD IT IS NOT TRUE THAT THE PEOPLE IMPOSING SUCH VIEWS IN AMERICAN UNIVERSITIES ARE PROTECTED BY FREEDOM OF SPEECH FREEDOM OF SPEECH PERTAINS TO PUBLIC SPEECH NOT TO SPEECH IN THE WORKPLACE YOU ARE NOT FREE TO SAY WHATEVER YOU LIKE WHEN YOU'RE ON THE JOB THE UNIVERSITY HOWEVER IS A SPECIAL SORT OF WORKPLACE FOR WHICH THE PRINCIPLES OF ACADEMIC FREEDOM HAVE BEEN DEVISED THOUGH AKIN TO FREEDOM OF SPEECH ACADEMIC FREEDOM DIFFERS FROM IT IN BEING CONDITIONAL UPON ONE'S FULFILLING CERTAIN RESPONSIBILITIES PROFESSORS HAVE AN OBLIGATION TO BASE THEIR CONCLUSIONS ON THE BEST AVAILABLE EVIDENCE AND TO PRESENT OPPOSING SIDES OF AN ISSUE FAIRLY THEY DO NOT HAVE THE RIGHT TO CALL DOCTRINES TRUE WHEN THEY KNOW OR OUGHT TO KNOW THAT THOSE DOCTRINES ARE WILDLY IMPROBABLE AT BEST MR SHORT EDITS ACADEMIC QUESTIONS THE QUARTERLY JOURNAL OF THE NATIONAL ASSOCIATION OF SCHOLARS PROF LEFKOWITZ SUCCINCTLY STATES THE CURRENT ACADEMIC PROBLEM WITH REVISIONISTS THANK HEAVEN AT LEAST THAT THERE WERE ANCIENT ARABS WHO THOUGHT HIGHLY ENOUGH OF THE GREEK PHILOSOPHERS TO HAVE HAD THEIR WORKS TRANSLATED INTO ARABIC FOR SOME OF ARISTOTLE'S WRITINGS ARE TODAY ONLY EXTANT THEREIN THEIR ATTIC VERSIONS HAVING BEEN LOST LONG AGO THAT ANCIENT ARABS REGARDED ARISTOTLE SO HIGHLY PROVES THEIR DEBT TO HIM AND ALSO REBUTS PROF BENJOCHANNAN'S CONTENTIONS THAT ARISTOTLE SACKED THE GREAT LIBRARY AT ALEXANDRIA AND STOLE HIS IDEAS FROM ARAB PHILOSOPHERS PERHAPS HE IS THINKING OF PYTHAGORAS OF SAMOS WHO I BELIEVE DID VISIT EGYPT 9305240092 930524 BLOOD FEUD HEARTSURGERY BATTLE IN MICHIGAN IS STRUGGLE OVER COST CARE PROFIT FIRMS UNIONS JOIN TO BLOCK EXPANSION THAT HOSPITAL NEEDS FOR ITS OWN HEALTH SAFETY IS PART OF FIGHT TOO BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL LANSING MICH THERE ARE 28 OPENHEART SURGERY PROGRAMS AT HOSPITALS IN MICHIGAN JOSEPH DAMORE WANTS TO HAVE NUMBER 29 THE CHIEF EXECUTIVE OF SPARROW HOSPITAL HERE IS BUILDING THE KIND OF FULLSERVICE HEALTHCARE ORGANIZATION HE BELIEVES WILL BE NEEDED TO COMPETE IN THE ERA OF MANAGED COMPETITION OPENHEART SURGERY IS THE CAPSTONE OF HIS STRATEGY BUT HIS DREAM HAS COLLIDED HEADON WITH AN EXTRAORDINARY CAMPAIGN WAGED BY MICHIGAN'S MOST POWERFUL ECONOMIC INTERESTS INCLUDING BOTH THE AUTO MAKERS AND THEIR UNIONS WHEN IT COMES TO OPENHEART CENTERS THESE OPPONENTS INSIST MORE IS NOT BETTER JUST COSTLIER AND RISKIER SO DETERMINED IS THE OPPOSITION THAT JOHN F SMITH JR GENERAL MOTORS CORP'S CHIEF EXECUTIVE TOLD A SURPRISED GOV JOHN ENGLER IN THEIR VERY FIRST MEETING LAST FALL THAT ONE OF GM'S TOP PRIORITIES WAS BLOCKING NEW HEARTSURGERY UNITS OTHER TOP CORPORATE OFFICIALS AND UNION LEADERS FLOODED HOSPITAL EXECUTIVES ACROSS THE STATE WITH LETTERS PHONE CALLS AND VISITS TO PROTEST PLANS FOR NEW PROGRAMS ONE UNION LEADER POLLED HIS MEMBERS BEFORE TAKING A PUBLIC STANCE AGAINST A NEW HEART CENTER AT A HOSPITAL WHERE THEY WORK THERE'S EXCESS CAPACITY FOR OPENHEART SURGERY IN THIS STATE AND WE NEED TO CONTAIN IT SAYS RICHARD O'BRIEN A SENIOR GM OFFICIAL WHO IS COCHAIRMAN OF THE ECONOMIC ALLIANCE THE BUSINESSLABOR COALITION THAT HAS ORCHESTRATED THE CAMPAIGN WE FEEL THIS COMMUNITY IS SHORT IN THE KIND OF HEALTH SERVICES IT DESERVES COUNTERS MR DAMORE WHOSE PROPOSED PROGRAM IS ONE OF NINE THE ALLIANCE HAS ATTACKED THE COMMUNITY SUPPORTS US THE CLASH IS UNFOLDING ON ONE OF HEALTH CARE'S NEXT BIG BATTLEGROUNDS THE 60 BILLION BUSINESS OF TREATING HEARTS LURED BY HIGH PROFIT MARGINS AND THE PRESTIGE OF HIGHTECH MEDICINE MORE THAN 900 OR 15 OF US HOSPITALS NOW OFFER MAJOR HEART SURGERY UP NEARLY 60 IN THE PAST DECADE BUT THEY VARY WIDELY IN BOTH COST AND PERFORMANCE AND POWERFUL NEW MARKET FORCES ARE EXPECTED TO REWARD TOPQUALITY PROGRAMS AND STIFLE OTHERS MEANWHILE HOSPITALS LIKE SPARROW ARE SCRAMBLING TO POSITION THEMSELVES FOR A FUTURE HEALTHCARE MARKET DOMINATED BY LARGE ORGANIZATIONS THAT WILL OFFER CRADLETOGRAVE SERVICES AT A FIXED PRICE FOR A HOSPITAL TO BECOME AN EFFECTIVE HEALTH SYSTEM IT HAS TO OWN EVERYTHING SAYS SPENCER JOHNSON PRESIDENT OF THE MICHIGAN HOSPITAL ASSOCIATION BUT BIG PURCHASERS WHO WELCOME COMPETITION AMONG OTHER SUPPLIERS WORRY THAT UNLESS HOSPITALS COLLABORATE ON SOME BIGTICKET SERVICES THEY WILL CONTINUE THE MEDICAL TECHNOLOGY ARMS RACE THAT HAS BEEN HELPING FUEL RUNAWAY HEALTH COSTS NOT ONLY DOES OVERSUPPLY OF OPENHEART TECHNOLOGY WASTE MONEY THEY SAY IT ALSO DILUTES QUALITY RISKING PATIENTS' LIVES IF EVERY HOSPITAL HAS ONE OF THESE UNITS DEATH RATES WILL GO UP SAYS FRANK GARRISON PRESIDENT OF THE MICHIGAN AFLCIO AND COCHAIRMAN OF THE ALLIANCE AS THE NATION AWAITS THE CLINTON ADMINISTRATION'S PLAN FOR OVERHAULING US HEALTH CARE THE OPENHEART BATTLE SPOTLIGHTS BROADER CONFLICTS FACING PURCHASERS AND PROVIDERS IN MIDSIZED CITIES IN PARTICULAR TOO MUCH COLLABORATION MAY MEAN MONOPOLY SUPPLIERS BUT TOO MUCH COMPETITION COULD RESULT IN EXCESS CAPACITY IF YOU LOOK AT IT THROUGH A HOSPITAL'S EYES YOU WOULD DO EXACTLY WHAT THEY'RE TRYING TO DO SAYS JOHN LOBBIA CHAIRMAN AND CEO OF DETROIT EDISON CO BUT FOR THE GOOD OF THE COMMUNITY MAYBE THE HOSPITAL SHOULD BE PART OF A BIGGER NETWORK THAT DOESN'T HAVE TO REPLICATE SERVICES I DON'T KNOW WHAT THE ANSWER IS BUT THAT'S WHAT THE WHOLE COUNTRY IS GOING THROUGH CENTRAL TO THE STRUGGLE IS A GROWING BODY OF RESEARCH DEMONSTRATING THAT HOSPITALS AND DOCTORS WHO DO A BIG VOLUME OF OPENHEART OPERATIONS GET BETTER RESULTS INCLUDING FEWER DEATHS FOR PATIENTS AT LOWER COST IN A RECENT NEW YORK STATE STUDY FOR INSTANCE BYPASS PATIENTS WERE FOUND TO BE FIVE TIMES AS LIKELY TO DIE AT THE HANDS OF SURGEONS AND HOSPITALS DOING THE FEWEST PROCEDURES AS AT THOSE DOING THE MOST THE BEST PERFORMERS WERE SURGEONS WHO DO MORE THAN 180 OPERATIONS A YEAR AT HOSPITALS THAT DO MORE THAN 700 A REPORT LAST FALL BY THE PENNSYLVANIA HEALTH CARE COST CONTAINMENT COUNCIL SHOWED THAT THE HOSPITAL CHARGING THE LOWEST PRICE FOR BYPASS OPERATIONS WAS ALSO AMONG THE BEST PERFORMERS ON DEATH RATES THERE ARE EXCEPTIONS AND MITIGATING FACTORS TO SUCH FINDINGS OF COURSE BUT THE TANTALIZING MARRIAGE OF HIGH QUALITY AND LOW COSTS IS PROMPTING NEW STRATEGIES AMONG BOTH PURCHASERS AND PROVIDERS OF CARE AROUND THE US TO DIRECT HEART PATIENTS TO HIGHVOLUME PROGRAMS DELTA AIR LINES FOR INSTANCE RECENTLY SELECTED SIX HOSPITALS NATIONWIDE TO PROVIDE OPENHEART SURGERY FOR ITS EMPLOYEES BLUE CROSS & BLUE SHIELD OF MINNESOTA JUST PICKED 12 HOSPITALS TO FORM A HEARTCARE NETWORK LEAVING 10 OTHERS OUT AND HEART DOCTORS WHO ALREADY DO ABOUT 15 OF THE NATION'S CORONARYARTERY BYPASS OPERATIONS ARE FORMING A NATIONAL NETWORK HEADQUARTERED IN ATLANTA TO SELL THEIR SERVICES DIRECTLY TO COMPANIES INSURERS AND GOVERNMENT HEALTH PROGRAMS ALL OF THIS SPELLS PROBLEMS FOR MANY OPENHEART CENTERS AS MORE LARGE PURCHASERS SHIFT THEIR BUSINESS TO HIGHVOLUME CENTERS OTHER HEART PROGRAMS PREDICTS STANFORD UNIVERSITY ECONOMIST ALAIN C ENTHOVEN WILL GET THEIR JUST DESERTS EXTINCTION THE MAINSTAY OF OPENHEART PROGRAMS IS BYPASS SURGERY BUT THEY ALSO PROVIDE CRUCIAL BACKUP FOR ANGIOPLASTY A POPULAR AND LESSINVASIVE PROCEDURE THAT USES A TINY BALLOON TO OPEN CLOGGED ARTERIES OCCASIONALLY ANGIOPLASTY GOES SOUR REQUIRING AN EMERGENCY BYPASS THESE PROCEDURES ARE BIG BUSINESS EVERYWHERE BUT ESPECIALLY IN MICHIGAN THE STATE RANKS NO 1 IN DEATH RATES FROM HEART DISEASE AND THANKS IN PART TO AN AGING BLUECOLLAR WORK FORCE AND THOUSANDS OF RETIREES MANY OF THE STATE'S BIG EMPLOYERS PAY STAGGERING AMOUNTS FOR ITS TREATMENT DETROIT EDISON FOR INSTANCE SAYS AS MUCH AS 25 OF COSTS UNDER ITS BENEFITS PLAN GOES FOR HEART CARE TO GET A HANDLE ON SUCH COSTS A COALITION CALLED THE GREATER DETROIT AREA HEALTH COUNCIL LAUNCHED A PROJECT EARLY IN 1992 TO DEVELOP STANDARDS FOR HEART CARE AND FOR RATING THE 12 OPENHEART PROGRAMS IN SOUTHEAST MICHIGAN HOSPITALS AND DOCTORS ARE HELPING TO DEVISE THE STANDARDS EVENTUALLY EMPLOYERS PLAN TO USE THEM TO STEER EMPLOYEES TO THE TOP PERFORMERS SQUEEZING THE LEAST EFFICIENT ALSO A SOCALLED CERTIFICATEOFNEED LAW REQUIRES HOSPITALS TO PROVE AN UNMET DEMAND FOR BIGTICKET SERVICES BEFORE THEY CAN PROVIDE THEM BUT WHEN THE STATE AUTHORIZED TWO NEW HEART PROGRAMS FOR ONE COMMUNITY NORTH OF DETROIT LAST SPRING OFFICIALS AT THE HEALTH COUNCIL WORRIED THAT A GLUT OF NEW CAPACITY WOULD OVERWHELM THEIR FLEDGLING HEART PROJECT CAPACITY WASN'T A FRONTBURNER ISSUE FOR US SAYS JAMES B KENNEY PRESIDENT AND CHIEF EXECUTIVE OF THE COUNCIL THIS CAUSED US TO MOVE IT TO THE FRONT BURNER HE GOT IN TOUCH WITH THE ECONOMIC ALLIANCE HELPING TO TRIGGER A CHAIN OF EVENTS THAT WOULD ENGULF SPARROW AND A HOST OF OTHER HOSPITALS IN A BITTER STRUGGLE SPARROW A 502BED NOTFORPROFIT HOSPITAL WITH 300 MILLION IN ANNUAL REVENUE IS IN DOWNTOWN LANSING ABOUT A MILE FROM MICHIGAN'S STATEHOUSE IT OWNS A HEALTH MAINTENANCE ORGANIZATION A PHARMACY AND A HOMEHEALTHCARE BUSINESS AND HAS SEVERAL FAMILYPRACTICE CLINICS INSIDE THE HOSPITAL ARE A BURN UNIT A MAGNETIC RESONANCE IMAGING MACHINE A DIAGNOSTIC CARDIAC CATHETERIZATION LAB A NEUROLOGY SERVICE AND A COMPREHENSIVE TRAUMA CENTER THAT SERVES MORE THAN 50000 EMERGENCY PATIENTS A YEAR BUT LACKING AN OPENHEART UNIT SPARROW LAST YEAR WAS FORCED TO TRANSFER 400 PATIENTS TO OTHER HOSPITALS MOSTLY TO CROSSTOWN RIVAL INGHAM MEDICAL CENTER THAT 235BED FACILITY OPERATES LANSING'S ONLY OPENHEART PROGRAM AND DOES MORE THAN 800 PROCEDURES A YEAR MOST MAJOR HEART PROCEDURES ARE SCHEDULED NOT EMERGENCY OPERATIONS AND PATIENT TRANSFERS BETWEEN HOSPITALS ARE ROUTINE BUT SPARROW CLAIMS HAVING ITS OWN UNIT WOULD SAVE 1 MILLION A YEAR IN COSTS ASSOCIATED WITH TRANSFERS IMPROVE ITS ABILITY TO OFFER CARE AT COMPETITIVE PRICES AND PROVIDE CRUCIAL SUPPORT FOR ITS EMERGENCY ROOM FOR TRAUMA CARE IF YOU DON'T HAVE OPEN HEART CAPABILITIES PEOPLE ARE GOING TO DIE SAYS BEN BACHULIS MEDICAL DIRECTOR OF TRAUMA SERVICES THE PROGRAM ALSO WOULD FATTEN SPARROW'S BOTTOM LINE THE HOSPITAL PROJECTS IN ITS CERTIFICATEOFNEED APPLICATION THAT BY THE THIRD YEAR OF OPERATION A HEART UNIT WOULD RAISE OVERALL OPERATING MARGINS 29 ON A 4 INCREASE IN OPERATING REVENUE BASED ON 1990 RESULTS MARGINS WOULD BE NEARLY 12 ON OPENHEART OPERATIONS AND A WHOPPING 55 FOR ANGIOPLASTY MR DAMORE PLAYS DOWN THE PROJECTIONS HE SAYS THAT THE PROCEDURES HELP PAY FOR OTHER SERVICES THAT LOSE MONEY AND THAT THE SIGNIFICANCE OF THE MARGINS WILL DIMINISH AS PURCHASERS SHIFT FROM FEEFORSERVICE PAYMENT TO PACKAGE PRICES IN ANY EVENT UNDER AN ARCANE STATE FORMULA SPARROW'S 400 HEARTPATIENT TRANSFERS TRANSLATED INTO JUST 583 PROSPECTIVE OPENHEART PROCEDURES STATE REGULATIONS REQUIRED 200 FOR A NEW PROGRAM BUT THE REGULATIONS ALLOWED APPLICANTS TO COMBINE DATA WITH OTHER HOSPITALS OSTENSIBLY TO ENABLE RURAL FACILITIES TO POOL POTENTIAL REFERRALS FOR REGIONAL OPENHEART CENTERS THE RULES PLACED NO SUCH RESTRICTIONS ON THE SOURCE OF POOLED DATA A LOOPHOLE THAT SPARROW LIKE SOME PREVIOUS APPLICANTS USED TO REACH 200 INDEED THE HOSPITAL SECURED PLEDGES FOR ANOTHER 162 PATIENTS MORE THAN 70 OF ITS DATA FROM SIX OTHER HOSPITALS TWO IN LANSING AND TWO EACH IN DETROIT AND MUSKEGON CITIES WELL OUT OF SPARROW'S MARKETING AREA IT WAS A FLAGRANT ABUSE CHARGES LARRY HORWITZ EXECUTIVE VICE PRESIDENT OF THE STATE'S ECONOMIC ALLIANCE WE DID IT NOT TO GET AROUND ANYTHING BUT TO COMPLY WITH THE REGULATIONS AS THEY ARE WRITTEN MR DAMORE REPLIES SPARROW FILED THE FIRST PART OF ITS APPLICATION ON JULY 7 1992 A WEEK LATER AT THE BEHEST OF THE ALLIANCE THE STATE'S CERTIFICATEOFNEED COMMISSION ANNOUNCED IT WOULD CONSIDER NEW RULES THAT WOULD RAISE THE THRESHOLD OF OPENHEART PROCEDURES TO 300 AND END THE PRACTICE OF HOSPITALS BORROWING DATA FROM BEYOND THEIR MARKETING AREAS OTHER HOSPITALS RACED TO BEAT THE NEW RULES BY THANKSGIVING EIGHT APPLICANTS WERE IN LINE ALL SEEKING TO BE CONSIDERED BEFORE THE NEW STANDARDS TOOK EFFECT MR HORWITZ OF THE ALLIANCE FIGURED THAT IF THEY ALL WON APPROVAL THE STATE WOULD BE AWASH IN NEW CAPACITY AND THE NEW STANDARDS WOULD BE MEANINGLESS HE DIRECTED A THREEPRONGED ATTACK TO PREVENT THE FLOOD OF NEW PROGRAMS TO STYMIE THE EIGHT NEW APPLICANTS THE PROPOSED NEW REGULATIONS WOULD NOT ONLY HAVE TO WIN APPROVAL BUT TAKE EFFECT RETROACTIVELY THE ALLIANCE NEEDED THE SUPPORT OF GOV ENGLER BUT HE WAS A CONSERVATIVE REPUBLICAN AND A CRITIC OF REGULATIONS SUCH AS CERTIFICATE OF NEED IT ROLLED OUT ITS BIG GUNS FORD MOTOR CO CHAIRMAN HAROLD A POLING AND DETROIT EDISON'S MR LOBBIA AMONG OTHERS THE CLINCHER WAS THE PRIVATE MEETING BETWEEN THE GOVERNOR AND GM'S MR SMITH SHORTLY AFTER THANKSGIVING LOOKING TO HIS FIRST MEETING WITH THE NEW LEADER OF THE STATE'S LARGEST EMPLOYER MR ENGLER EXPECTED BROAD ECONOMIC ISSUES TO DOMINATE THE SESSION SO WHAT'S THE ONE THING THAT JACK SMITH RAISES RECALLS DENNIS L SCHORNACK THE GOVERNOR'S CHIEF POLICY AIDE OPENHEART SURGERY NOT LONG AFTERWARD THE CERTIFICATEOFNEED COMMISSION WITH GOV ENGLER'S BLESSING APPROVED THE TOUGHER STANDARDS AND SAID THE EIGHT HOSPITALS IN THE PIPELINE WOULD HAVE TO MEET THEM MEANWHILE THE ALLIANCE DISPATCHED OTHER CORPORATE AND UNION OFFICIALS TO URGE THE EIGHT TO WITHDRAW THEIR APPLICATIONS DETROIT EDISON TOLD APPLICANTS IN THE DETROIT AREA IT WOULDN'T RECOMMEND THEIR CENTERS FOR ITS 9100 WORKERS THAT'S A PRETTY BIG CLUB SAYS AN OFFICIAL SPEAKING FOR ONE OF FOUR HOSPITALS THAT PULLED OUT SPARROW'S APPLICATION WAS FILED BEFORE REGULATORS DECIDED TO CONSIDER NEW STANDARDS THE ALLIANCE SET OUT TO TORPEDO IT ANYWAY AND IT WAS VULNERABLE IF JUST TWO OF THE SIX HOSPITALS SUPPORTING ITS PROGRAM COULD BE PERSUADED TO WITHDRAW THE FILING WOULD FALL SHORT OF 200 PATIENTS THE ALLIANCE WENT AFTER ALL SIX ONE HOSPITAL HAD FILED FOR BANKRUPTCYLAW PROTECTION AND CLOSED SINCE PLEDGING ITS DATA TO SPARROW ALLIANCE OFFICIALS TRACKED DOWN THE BANKRUPTCY TRUSTEE WHO RETRACTED A PLEDGE OF 17 PATIENTS IN MUSKEGON OFFICIALS OF TWO LOCAL EMPLOYERS SPX CORP AND JSJ CORP TOLD EXECUTIVES AT MUSKEGON GENERAL AND HACKLEY HOSPITALS THAT LENDING PATIENTS TO A HOSPITAL 100 MILES AWAY WAS BAD POLICY BOTH FOR THEIR OWN REGION AND FOR THE STATE BOTH HOSPITALS WITHDREW THEIR SUPPORT BUT MR DAMORE BATTLED BACK HE AND HIS STAFF GARNERED NEW PLEDGES FROM TWO OTHER HOSPITALS INCLUDING ONE IN CALUMET NEAR THE NORTHERN TIP OF MICHIGAN'S UPPER PENINSULA 500 MILES FROM LANSING THAT'S THE CLOSEST HOSPITAL IN MICHIGAN TO THE NORTH POLE FUMES MR HORWITZ MR DAMORE ALSO FIRED OFF A LEGAL OPINION TO THE MUSKEGON HOSPITALS SUGGESTING THEY WERE IN BREACH OF CONTRACT AND POTENTIALLY LIABLE FOR SEVERAL HUNDRED THOUSAND DOLLARS IN DAMAGES IF THE PROGRAM WAS DENIED AT MUSKEGON GENERAL THE BOARD RECONSIDERED ITS POSITION AND RESUBMITTED ITS PLEDGES A FEW DAYS LATER UNDER RENEWED PRESSURE FROM ITS BIG CUSTOMERS IT WITHDREW THEM AGAIN IN MIDDECEMBER TWO WEEKS BEFORE THE SPARROW DECISION WAS DUE THE HOSPITAL'S NET COUNT WAS 181 PATIENTS MR HORWITZ FIGURING THAT MR DAMORE WAS COMBING THE STATE TO SALVAGE HIS PROGRAM SCHEDULED A MEETING WITH SPARROW'S MOST IMPORTANT SUPPORTER SINAI HOSPITAL IN DETROIT SINAI NOT ONLY PROVIDED 52 PATIENT PLEDGES IT WAS TO SERVE AS THE NEW PROGRAM'S SPONSOR FOR THE FIRST THREE YEARS A ROLE REQUIRED UNDER THE REGULATIONS ON DEC 22 MR HORWITZ DR KENNEY FROM THE HEALTH COUNCIL AND REPRESENTATIVES OF THE UNITED AUTO WORKERS GM FORD CHRYSLER CORP DETROIT EDISON AND THE METROPOLITAN DETROIT AFLCIO ALL PAID A VISIT TO PHILLIP SCHAENGOLD SINAI'S CHIEF EXECUTIVE FOR NEARLY AN HOUR MR SCHAENGOLD HELD HIS GROUND OTHER PARTICIPANTS SAY BUT ULTIMATELY IN THE BEST INTEREST OF SINAI HOSPITAL AND THE COMMUNITY HE RELENTED IT WAS A TERRIBLE CHRISTMAS PRESENT MR DAMORE SAYS HE SAID HE WAS GETTING PRESSURE HE DIDN'T BARGAIN FOR ON DEC 30 THE COMMISSION DENIED SPARROW'S APPLICATION A DECISION FORMALLY APPROVED BY THE STATE HEALTH DEPARTMENT A FEW WEEKS LATER MEANTIME FOUR OTHERS APPLICANTS HELD FIRM ONE FOOTE HOSPITAL IN JACKSON WON A COURT CHALLENGE TO THE RETROACTIVE PROVISION IN THE NEW REGULATIONS BUT TWO WEEKS AGO AN APPEALS COURT OVERTURNED THAT DECISION THIS APPEARS TO GIVE THE ALLIANCE A CLEAN SWEEP WHILE FURTHER APPEALS AND PROLONGED LITIGATION ARE ANTICIPATED NOT ONE OF THE NINE PROPOSED OPENHEART UNITS IS LIKELY TO OPEN ANY TIME SOON NOW SAYS MR HORWITZ PURCHASERS WILL SEEK TO REDUCE EXISTING OPENHEART CENTERS NOT THROUGH REGULATION BUT IN THE MARKETPLACE BY IDENTIFYING AND STEERING BUSINESS TO HIGHQUALITY LOWCOST PROGRAMS MEANWHILE SPARROW HAS INITIATED LEGAL ACTION HOPING TO REVERSE THE DECISION IN ITS CASE WE FEEL WE'VE BEEN UNFAIRLY VICTIMIZED BY THE FLOCK OF OTHER HOSPITALS THAT APPLIED TO BEAT THE RULES CHANGE MR DAMORE SAYS IT'S A CRAZY SYSTEM BUT WE PLAYED BY THE RULES IN A LEGAL MORAL AND ETHICAL WAY SAYS DETROIT EDISON'S MR LOBBIA FAIR ISN'T ALWAYS FAIR THE END OBJECTIVE FOR ALL OF US HAS TO BE TO DO SOMETHING ABOUT THE HEALTHCARE SYSTEM IT'S EATING US UP 9305240091 930524 CORRECTIONS & AMPLIFICATIONS AN ARTICLE FRIDAY ABOUT HILLARY RODHAM CLINTON'S INVESTMENTS INCORRECTLY CITED AN ASSOCIATED PRESS ARTICLE'S REFERENCE TO COMMENTS FROM A SPOKESMAN FOR THE FEDERAL OFFICE OF GOVERNMENT ETHICS THE SPOKESMAN DID NOT SAY MRS CLINTON HEAD OF THE PRESIDENT'S TASK FORCE ON HEALTHCARE REFORM SHOULD CONSIDER DIVESTING HERSELF OF HER HEALTHCARE INVESTMENTS THE SPOKESMAN TOLD THE AP A GOVERNMENT OFFICIAL WITH SUCH A KEY ROLE WOULD HAVE TO CONSIDER THAT ACTION THE AP ARTICLE NOTED THAT MRS CLINTON IS NOT A GOVERNMENT OFFICIAL LEDERLE LABORATORIES A DIVISION OF AMERICAN CYANAMID CO MARKETS A NICOTINE PATCH MANUFACTURED BY ELAN CORP OF IRELAND CIBAGEIGY LTD OF SWITZERLAND MARKETS A SEPARATE NICOTINE PATCH AN ARTICLE APRIL 23 INCORRECTLY STATED THAT CIBAGEIGY SELLS A PATCH MADE BY ELAN SONY CORP'S MUSIC GROUP REVENUE WAS 38 BILLION FOR THE YEAR ENDED MARCH 31 IN AN ARTICLE FRIDAY THE FIGURE WAS MISSTATED AS 33 BILLION FRANK A MAIER WAS NAMED VICE PRESIDENT OF PROJECT FINANCE AT ENSERCH CORP'S DEVELOPMENT UNIT AN ITEM IN FRIDAY'S WHO'S NEWS COLUMN INCORRECTLY IDENTIFIED HIS NEW POSITION AS PRESIDENT OF PROJECT FINANCE AT THE UNIT 9305240090 930524 BUSINESS BRIEF EQUITABLE RESOURCES INC PRODUCTION RECORDS SEEN FOR ENERGY RESOURCE LINES EQUITABLE RESOURCES INC AT ITS ANNUAL MEETING PROJECTED PRODUCTION RECORDS FOR THE COMPANY'S ENERGY RESOURCE SEGMENT IN 1993 ESTIMATING A GAIN OF 8 FOR NATURAL GAS TO 51 BILLION CUBIC FEET TO 53 BILLION CUBIC FEET AND A GAIN OF 6 FOR OIL TO 25 MILLION BARRELS TO 26 MILLION BARRELS THE PITTSBURGH NATURAL GAS AND OIL CONCERN SAID EARNINGS FOR THE FIRST FOUR MONTHS OF 1993 INCREASED 24 TO 114 A SHARE COMPARED WITH 92 CENTS A SHARE FOR THE YEARAGO PERIOD ON APRIL 27 EQUITABLE HAD REPORTED FIRSTQUARTER NET INCOME OF 308 MILLION OR 98 CENTS A SHARE EQUITABLE SAID SEVERAL NEW STORAGE PROJECTS ARE BEING PLANNED BY ITS EQUITRANS INC PIPELINE UNIT TWO OF THE PROJECTS RIVERSIDE I IN SOUTHWEST PENNSYLVANIA AND THE AVOCA SALT CAVERN IN UPSTATE NEW YORK ARE CURRENTLY BEING DEVELOPED THE COMPANY ALSO SAID ITS DISTRIBUTION UNIT EQUITABLE GAS CO IS PREPARING TO PROVIDE SALES AND SERVICES BEYOND ITS FRANCHISE TERRITORY THE COMPANY ALSO SAID HOLDERS APPROVED A PROPOSAL TO DOUBLE THE NUMBER OF AUTHORIZED COMMON SHARES TO 80 MILLION 9305240089 930524 BUSINESS BRIEF OPTICAL COATING LABORATORY INC PROFIT FELL IN APRIL QUARTER COMPANY EXPECTS FLAT YEAR OPTICAL COATING LABORATORY INC CITING AGGRESSIVE PRICE COMPETITION POSTED A 22 DROP IN FISCAL SECONDQUARTER NET INCOME AND SAID FULLYEAR EARNINGS AREN'T EXPECTED TO EXCEED 1992 EARNINGS FOR THE QUARTER ENDED APRIL 30 OPTICAL SAID NET WAS 14 MILLION OR 15 CENTS A SHARE DOWN FROM 18 MILLION OR 21 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 324 MILLION FROM 315 MILLION THE SANTA ROSA CALIF OPTICS COMPANY SAID IT WAS HURT BY PRICE COMPETITION AND REDUCED DEMAND CAUSED BY A WEAK ECONOMY HERBERT DWIGHT JR CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT WE NOW BELIEVE THAT IT IS UNLIKELY THAT EARNINGS FOR THE CURRENT FISCAL YEAR WILL EXCEED THOSE OF 1992 IN FISCAL 1992 OPTICAL EARNED 65 MILLION OR 75 CENTS A SHARE ON REVENUE OF 115 MILLION 9305240088 930524 BUSINESS BRIEF CHIQUITA BRANDS INTERNATIONAL INC S&P REDUCES DEBT RATINGS MARKET CONDITIONS ARE CITED STANDARD & POOR'S CORP LOWERED RATINGS ON 16 BILLION OF CHIQUITA BRANDS INTERNATIONAL INC DEBT CITING A WEAKER CREDIT PROFILE DUE TO INCREASED DEBT LEVERAGE AND THE DIFFICULT MARKET CONDITIONS IN THE COMPANY'S CORE BANANA BUSINESS CHIQUITA COULDN'T BE REACHED FOR COMMENT BUT IN THE PAST HAS DECLINED TO COMMENT ON DEBT RATINGS S&P LOWERED THE RATINGS ON CHIQUITA'S SENIOR DEBT TO DOUBLEB FROM DOUBLEBPLUS IT LOWERED RATINGS ON SUBORDINATED DEBT TO SINGLEBPLUS FROM DOUBLEBMINUS THE DEBT IS REMOVED FROM CREDIT WATCH WHERE S&P PLACED IT ON MARCH 8 9305240087 930524 BUSINESS BRIEF AILEEN INC WOMEN'S APPAREL RETAILER HAD FISCAL 2NDQUARTER LOSS AILEEN INC REPORTED A LOSS FOR THE FISCAL SECOND QUARTER BUT SAID IT WAS CAUTIOUSLY OPTIMISTIC ABOUT THE REMAINDER OF THE FISCAL YEAR BASED ON IMPROVING SALES IN THE CURRENT QUARTER FOR THE QUARTER ENDED MAY 1 THE WOMEN'S APPAREL RETAILER BASED IN NEW YORK REPORTED A NET LOSS OF 14 MILLION OR 26 CENTS A SHARE COMPARED WITH NET INCOME OF 625000 OR 12 CENTS A SHARE IN THE YEAR AGO PERIOD SALES DECREASED 15 TO 136 MILLION SAMESTORE SALES OR SALES AT STORES OPEN MORE THAN ONE YEAR DECLINED 19 IN THE QUARTER AILEEN WHICH HAD 140 RETAIL OUTLETS OPEN AT THE END OF THE SECOND QUARTER SAID SAMESTORE SALES FOR THE FIRST TWO WEEKS OF THE THIRD QUARTER WERE STRONGER THAN ONE YEAR AGO 9305240086 930524 BUSINESS BRIEF QFB PARTNERS GROUP GETS HOLDERS' BACKING FOR PETROLANE RESTRUCTURING PETROLANE GAS SERVICE LP A MAJOR PROPANE GAS MARKETER THAT IS IN BANKRUPTCY PROCEEDINGS MOVED A STEP CLOSER TO BEING RESTRUCTURED AND PARTIALLY ACQUIRED BY AMERIGAS INC A UNIT OF UGI CORP QFB PARTNERS AN INVESTMENT GROUP AND ITS PETROLANE UNIT SAID THEY RECEIVED STRONG CREDITOR AND EQUITY HOLDER BACKING FOR THE PREPACKAGED REORGANIZATION AND SALE OF PETROLANE AS A RESULT QFB AND ITS SUBSIDIARIES FILED PETITIONS WITH THE US BANKRUPTCY COURT IN NEW YORK SEEKING CONFIRMATION OF THE REORGANIZATION PLAN UGI A VALLEY FORGE PA ELECTRIC AND GAS UTILITY AND PROPANE GAS MARKETER HAS SOUGHT TO ACQUIRE PETROLANE FOR ABOUT TWO YEARS AND HAD SAID IT EXPECTED TO BEGIN THE ACQUISITION BY AUG 1 ACCORDING TO UGI THE PLAN CALLS FOR A RESTRUCTURING OF 1 BILLION IN PETROLANE DEBT PETROLANE WOULD SUBSEQUENTLY BECOME 70OWNED BY ITS CURRENT BONDHOLDERS AND 30OWNED BY AMERIGAS 9305240085 930524 BUSINESS BRIEF SHOWBOAT INC COMPANY ENDS PACT TO WIN NEW ORLEANS GAMING LICENSE SHOWBOAT INC SAID IT HAS AMICABLY BROKEN OFF AN AGREEMENT WITH A GROUP OF 10 NEW ORLEANS BUSINESS PEOPLE TO JOINTLY SEEK THE LICENSE FOR A LANDBASED CASINO IN THE CITY R CRAIG BIRD CHIEF FINANCIAL OFFICER FOR THE LAS VEGAS GAMBLING AND HOTEL COMPANY SAID THAT FOR VARIOUS REASONS THE PARTIES HAD DECIDED TO FORGO THE REST OF THE COMPETITION AGAINST OTHER PARTNERSHIPS TO WIN THE PROJECT HE DID NOT ELABORATE ANOTHER PARTNERSHIP INCLUDING CAESAR'S WORLD INC OF LAS VEGAS ALREADY HAS BEEN AWARDED A LEASE OF A DESIGNATED SITE FOR THE CASINO A CAESAR'S WORLD SPOKESMAN SAID HOWEVER A LOUISIANA STATE GAMBLING LICENSE REMAINS TO BE AWARDED IN JULY TO APPLICANTS THAT FILE BY A JUNE DEADLINE HE SAID OTHER PARTIES THAT HAVE DROPPED FROM THE COMPETITION INCLUDE ITT SHERATON THE ITT CORP UNIT PLUS BALLY MANUFACTURING CORP AND HILTON HOTELS CORP WHEN HILTON OFFICIALS WITHDREW LAST YEAR THEY CITED AN ANNUAL STATE FEE OF 100 MILLION THAT THEY SAID WAS TOO HIGH 9305240084 930524 COMPUTERS TYCOON IS TAPPING INTO ONLINE SERVICE BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL VIENNA VA IT HAS ALL THE ELEMENTS OF A VINTAGE 1980S TAKEOVER BATTLE A MYSTERIOUS ACQUISITIVE BILLIONAIRE A FEISTY TARGET LASTMINUTE SECURITIES AND EXCHANGE COMMISSION FILINGS AND POISON PILLS BUT THE DRAMA IS UNFOLDING IN THE REDHOT 1990S FIELD OF HIGHTECH MULTIMEDIA AND THE BILLIONAIRE IS PAUL ALLEN WHO COFOUNDED MICROSOFT CORP WITH HIS BOYHOOD FRIEND BILL GATES SIDELINED A DECADE AGO WITH HODGKIN'S DISEASE HE HAS LATELY RESURFACED AS A PLAYFUL BUT ULTRASECRETIVE TYCOON IN THE PACIFIC NORTHWEST AT 40 HE OWNS THE PORTLAND TRAIL BLAZERS BASKETBALL TEAM AND IS PUMPING MONEY INTO A JIMI HENDRIX MUSEUM IN SEATTLE HE IS ALSO QUIETLY ASSEMBLING A LITTLE EMPIRE OF FUTURISTIC MEDIA COMPANIES WITH NAMES LIKE STARWAVE SUREFIND AND TELESCAN THE CONCERNS ARE DESIGNING PROGRAMS AND TECHNOLOGY FOR A DAY WHEN INTERACTIVE DIGITAL SERVICES FLOOD OUR TVS AND TELEPHONES MR ALLEN'S LATEST QUARRY IS AMERICA ONLINE INC WHICH OFFERS NEWS GAMES ELECTRONIC MAIL AND OTHER SERVICES TO 250000 CONSUMERS VIA PERSONAL COMPUTER MR ALLEN HAS BEEN AMASSING ITS STOCK SINCE IT WENT PUBLIC IN MARCH 1992 AND HE IS NOW ITS BIGGEST HOLDER WITH A 249 STAKE THIS MONTH HE ABRUPTLY WENT ON THE OFFENSIVE JUST A WEEK AFTER PUBLICLY INSISTING HE WASN'T INTERESTED IN ACQUIRING AMERICA ONLINE HE DECLARED IN AN SEC FILING THAT HE MIGHT TRY TO DO JUST THAT AMERICA ONLINE INSISTS IT WANTS TO STAY INDEPENDENT AND THE TWO SIDES ARE NOW LOCKED IN A TENSE STANDOFF THE TENSION MOUNTED FRIDAY WHEN AMERICA ONLINE'S STOCK SUDDENLY EXPLODED LEAPING 450 A SHARE TO 3425 ON HEAVY VOLUME IN OVERTHECOUNTER TRADING REPORTS THAT MR ALLEN WAS SELLING SOME MICROSOFT STOCK PROMPTED SPECULATION THAT HE WAS RAISING FUNDS TO BUY UP AMERICA ONLINE ADDING TO THE MYSTERY AMERICA ONLINE DIRECTORS WERE IN A BOARD MEETING FRIDAY BUT SOURCES FAMILIAR WITH AMERICA ONLINE SAY MR ALLEN WASN'T BUYING MORE STOCK FRIDAY OR BREWING ANY NEW PLANS FOR THE COMPANY ANOTHER POSSIBLE REASON FOR THE FRENZY AMERICA ONLINE OFFICIALS GAVE AN UPBEAT PRESENTATION FRIDAY MORNING AT A MORGAN STANLEY INVESTORS' CONFERENCE IT ISN'T HARD TO UNDERSTAND MR ALLEN'S INTEREST IN AMERICA ONLINE IN A FROTHY INDUSTRY FILLED WITH RED INK AND FARFETCHED FANTASIES THE VIENNA VA UPSTART HAS A REAL PRODUCT RISING EARNINGS AND A SURGING BASE OF CUSTOMERS ITS YOUNG PRESIDENT STEPHEN CASE ALSO HAS A FANTASY OF HIS OWN AND IT MAY NOT BE ENTIRELY FARFETCHED IN ADDITION TO RUNNING HIS OWN NETWORK HE WANTS TO BE THE MICROSOFT OF MULTIMEDIA SUPPLYING THE BASIC SOFTWARE STANDARD FOR ALL RIVAL INTERACTIVE SERVICES IN DECEMBER MR CASE PULLED OFF A COUP THAT SUDDENLY BROUGHT HIM A BIG STEP CLOSER TO FULFILLING HIS FANTASY APPLE COMPUTER INC PREPARING A HUGE PUSH INTO ELECTRONIC CONSUMER SERVICES TAPPED AMERICA ONLINE TO PROVIDE ITS OPERATING SOFTWARE AND TOOK WARRANTS FOR A STAKE OF NEARLY 9 APPLE IS ONE IN A LONG LINE OF HEAVYHITTERS STANDING BEHIND LITTLE AMERICA ONLINE SPRINT CORP LAST MONTH GAVE IT A MAJOR TELECOMMUNICATIONS DISCOUNT IN RETURN FOR A BIG PACKAGE OF WARRANTS THE CHICAGO MEDIA GIANT TRIBUNE CO HAS A 10 STAKE AND A JOINT VENTURE TO CREATE ELECTRONIC NEWSPAPERS AND IF A TAKEOVER BATTLE HEATS UP THE COMPANY CAN COUNT ON STRATEGIC ADVICE FROM BOARDMEMBER ALEXANDER M HAIG JR THE COMPANY ALSO HAS PLENTY OF CHEERLEADERS ON WALL STREET WHERE ITS 1150 INITIAL OFFERING PRICE HAS ROCKETED INVESTORS HAVE BEEN GOBBLING IT UP AS THE ONLY PURE PLAY IN THE YOUNG ONLINE CONSUMER SERVICES MARKET ITS ARCHRIVALS H&R BLOCK INC'S COMPUSERVE GENERAL ELECTRIC CO'S GENIE AND PRODIGY A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL OPERATES AN ONLINE BUSINESS INFORMATION SERVICE CALLED DOW JONES NEWS/RETRIEVAL MR ALLEN RARELY GRANTS INTERVIEWS AND ISN'T SAYING ANYTHING ABOUT AMERICA ONLINE BUT PEOPLE CLOSE TO HIM SAY HE SEES AMERICA ONLINE AS A LAUNCHING PAD FOR HIS AMBITIOUS VENTURES IN ELECTRONIC SERVICES ONE ALLEN COMPANY STARWAVE CORP HAS A SMALL TEAM IN BELLEVUE WASH DEVELOPING GAMES SHOPPING AND OTHER PROGRAMS FOR THE POWERFUL INTERACTIVE NETWORKS MR ALLEN BELIEVES WILL BECOME COMMONPLACE ANOTHER ASYMETRIX CORP MAKES SOFTWARE FOR CREATING MULTIMEDIA PROGRAMS HE OWNS STAKES IN A SEATTLE COMPANY CALLED SUREFIND WHICH OFFERS CLASSIFIED ADS BY TELEPHONE AND TELESCAN A HOUSTON CONCERN THAT SENDS FINANCIAL DATA TO INVESTORS' PCS LAST YEAR MR ALLEN FORMED A MULTIMEDIA THINK TANK IN PALO ALTO CALIF CALLED INTERVAL RESEARCH CORP AND PROMISED TO POUR IN 100 MILLION OVER THE NEXT DECADE AMONG ITS ECLECTIC INTERESTS COGNITIVE PSYCHOLOGY AND ONLINE COMMUNITIES THE SUBJECT OF AN INVITATIONONLY INTERVAL CONFERENCE THIS MONTH AMERICA ONLINE IS ONE POTENTIAL VEHICLE FOR IMPLEMENTING SOME OF THESE NEW ONLINE MULTIMEDIA INFORMATION SERVICES SAYS BERT KOLDE ASYMETRIX'S PRESIDENT IT HAS AN EXISTING CUSTOMER BASE AND INFRASTRUCTURE MR ALLEN'S SEC FILINGS MAKE IT CLEAR THAT HE AND AMERICA ONLINE ARE DECIDEDLY AT ODDS ABOUT HIS PLANS IN AN APRIL 30 FILING HE COMPLAINED THAT AMERICA ONLINE REFUSED TO SHOW HIM ITS POISONPILL PLAN HE SAID HE HIMSELF REFUSED TO SIGN A STANDSTILL AGREEMENT PROPOSED BY MR CASE HE ALSO WARNED THAT HE MIGHT SEEK A BOARD SEAT AND LAUNCH A TENDER OFFER FOR THE COMPANY IN A SECOND FILING MR ALLEN DISCLOSED THAT HE MET WITH THE COMPANY MAY 11 AND PROPOSED THAT HIS COMPANIES AND AMERICA ONLINE JOINTLY DEVELOP MULTIMEDIA SOFTWARE THERE WAS NO ASSURANCE THAT A DEFINITIVE ARRANGEMENT ALONG THE LINES DISCUSSED COULD BE NEGOTIATED HE ADDED AMERICA ONLINE EXECUTIVES SAY THAT ANY OUTSIDE OWNER AND PAUL ALLEN IN PARTICULAR COULD UPSET THEIR DELICATE NETWORK OF BUSINESS ALLIANCES IN APRIL THE COMPANY ADOPTED ITS POISONPILL MEASURE TO THWART ANY HOLDER OF MORE THAN 25 OF ITS STOCK ONE OF THE REASONS WE'RE SUCCESSFUL IS THAT OUR ALLIANCE PARTNERS VIEW US AS BEING INDEPENDENT SAYS STEPHEN CASE A BOYISH 35YEAROLD WITH A RESUME OF MARKETING JOBS AT PEPSICO AND PROCTER & GAMBLE OF MR ALLEN HE SAYS THE FACT THAT HE HAS 3 BILLION IN MICROSOFT STOCK AND SITS ON MICROSOFT'S BOARD MIGHT MAKE SOME PEOPLE NERVOUS MR CASE COFOUNDED AMERICA ONLINE IN 1985 UNDER THE NAME QUANTUM COMPUTER SERVICES IT OFFERED A FEW MODEST BULLETIN BOARDS FOR THE EARLY HARDCORE TECHIE WITH A PC AND A MODEM AT HOME WITH THE RISE OF CHEAPER PCS EASIER SOFTWARE AND MORE POWERFUL MODEMS AMERICA ONLINE BOOMED TODAY ITS SUBSCRIPTIONS ARE SOARING 50 A YEAR IN THE YEAR ENDED JUNE 30 IT HAD NET INCOME OF 35 MILLION ON REVENUE OF 266 MILLION ITS FIFTH ANNUAL PROFIT IN THE PAST SIX YEARS BY CONTRAST MARKET LEADER PRODIGY WITH ONE MILLION SUBSCRIBERS HAS SPENT AN ESTIMATED 800 MILLION OVER THE PAST EIGHT YEARS AND HASN'T SEEN A PROFIT YET MR CASE HAS BEEN MORE ADROIT THAN MOST ONLINE EXECUTIVES IN UNDERSTANDING HIS MARKETPLACE'S PECULIAR HYBRID QUALITY HE HAS TAKEN PAINS TO MAKE HIS SOFTWARE SUPPLE AND FRIENDLY A CLOSE COUSIN OF THE POPULAR MACINTOSH FORMAT WHILE PRODIGY BOMBARDS ITS CUSTOMERS WITH ANIMATED ADS AND SHOPPING OPPORTUNITIES MR CASE ARGUES THAT HIS CUSTOMERS WANT AN ELECTRONIC COMMUNITY AND EMPHASIZES EMAIL AND PUBLIC BULLETIN BOARDS TODAY AMERICA ONLINE SUBSCRIBERS BROWSE THROUGH ELECTRONIC VERSIONS OF THE CHICAGO TRIBUNE AND THE NEW REPUBLIC AND THEN QUARREL ABOUT THE ARTICLES WITH EACH OTHER AND THE AUTHORS THEY CAN ALSO MAKE DIGITAL CHITCHAT ON THE PEOPLE CONNECTION THE RECENT INTERLOCUTORS THERE INCLUDED GLEEFUL ROSEY DAWN AFC DOUG AND BESTSELLING AUTHOR TOM CLANCY ROSEY DAWN WILL YOU RUN FOR PRESIDENT TOM TOM CLANCY ROSEY DO I LOOK THAT STUPID TOM CLANCY DON'T FORGET THE CHUTE PAL 9305240083 930524 TECHNOLOGY HDTV BIDDERS AGREE TO MERGE THEIR SYSTEMS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON OWNERS OF THE FOUR SYSTEMS COMPETING TO BE THE US STANDARD FOR HIGHDEFINITION TELEVISION REACHED A TENTATIVE PACT TO COMBINE THEIR SYSTEMS INDIVIDUALS FAMILIAR WITH THE NEGOTIATIONS SAID THE OWNERS HAD BEEN UNDER PRESSURE FROM THE FEDERAL GOVERNMENT TO FORM A GRAND ALLIANCE TO SPEED THE TRANSITION TO THE NEW TECHNOLOGY THE OWNERS HAVE DECIDED ON WAYS TO BLEND THEIR TECHNOLOGIES AND SPLIT LICENSING FEES BUT CURRENT BUSINESS ARRANGEMENTS INVOLVING ONE OF THE PARTICIPANTS THOMSON SA OF FRANCE MUST BE REWORKED BEFORE A FINAL AGREEMENT CAN BE SIGNED THE INDIVIDUALS SAID YESTERDAY A GROUP ADVISING THE FEDERAL COMMUNICATIONS COMMISSION HAD BEEN PUSHING FOR THE OWNERS OF THE FOUR SYSTEMS TO JOIN FORCES THOUGH THE GROUP HAD HOPED TO ANNOUNCE SUCH A DEAL TODAY A FINAL ACCORD MAY BE DELAYED WHILE THOMSON REDRAWS LICENSING AGREEMENTS ON TV TECHNOLOGY WITH GENERAL ELECTRIC CO GE HAD RETAINED CERTAIN LICENSING INCOME FROM PATENTS WHEN IT SOLD ITS CONSUMER ELECTRONICS DIVISION INCLUDING THE FORMER RCA CORP TO THOMSON IN 1987 IN FEBRUARY THE ADVISORY PANEL ORDERED A ROUND OF COSTLY TESTING FOR THE FOUR SYSTEMS THAT WAS SCHEDULED TO START TODAY BUT THE TESTING HAS NOW BEEN POSTPONED PERHAPS FOR A WEEK OR TWO IF THE AGREEMENT CRUMBLES THE FCC PROBABLY WILL PICK A WINNER SOMETIME NEXT YEAR RAISING THE POSSIBILITY OF LAWSUITS AGAINST THE FCC FROM THE LOSERS AND DELAYING USE OF THE NEW TECHNOLOGY HIGHDEFINITION TELEVISION PROMISES TO DELIVER CRISPER PICTURES AND CLEARER SOUND TO VIEWERS PERHAPS MORE IMPORTANTLY THE ADVANCED TV SYSTEM HOLDS THE PROMISE OF OPENING UP A WIDE RANGE OF VIDEO AND DATA SERVICES THAT CONSUMERS COULD OBTAIN THROUGH THEIR TV SETS DIGITAL TRANSMISSION AND COMPRESSION TECHNOLOGIES USE THE AIRWAVES MORE EFFICIENTLY AND ALLOW BROADCASTERS AND CABLE OPERATORS TO LINK THEIR SYSTEMS WITH COMPUTERS MORE EASILY THE TENTATIVE PACT ADDRESSES THE COMPETING NEEDS OF THE TELEVISION CABLE AND COMPUTER INDUSTRIES INITIALLY BROADCASTERS WILL BE ABLE TO CONTINUE USING INTERLACED SCANNING WHICH UPDATES EVERY OTHER LINE ON A TV SCREEN 30 TIMES A SECOND THAT MEANS SIGNIFICANT SAVINGS DURING THE TRANSITION TO HDTV THE ACCORD EVENTUALLY CALLS FOR A TRANSITION TO A COMPUTERFRIENDLY TECHNIQUE KNOWN AS PROGRESSIVE SCANNING IN WHICH AN ENTIRE PICTURE FRAME IS UPDATED 60 TIMES A SECOND PROGRESSIVE SCANNING TOGETHER WITH THE USE OF SQUARE PIXELS WHICH ARE THE EQUALLY SPACED DOTS THAT MAKE UP A TV PICTURE IS A BETTER WAY TO PRESENT DATA AND OTHER COMPUTER INFORMATION GE OFFICIALS FAMILIAR WITH THE LICENSING CONCERNS WEREN'T AVAILABLE FOR COMMENT THERE ARE SOME BUSINESS ITEMS THAT HAVE TO BE CLEARED UP BETWEEN PARTIES TO THE AGREEMENT AND OUTSIDERS SAID ONE PARTICIPANT IN THE TALKS THE CONTENDERS ARE TWO SYSTEMS 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 AND PHILIPS ELECTRONICS NV OF THE NETHERLANDS GE'S NBC UNIT AND COMPRESSION LABS INC OF SAN JOSE CALIF ALL FOUR SYSTEMS ARE DIGITAL MEANING THAT SIGNALS ARE TRANSMITTED IN THE 1S AND 0S OF COMPUTER CODE 9305240081 930524 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT COLEMAN WORLDWIDE CORP 1203 MILLION OF ZEROCOUPON SENIOR SECURED LIQUID YIELD OPTION NOTES THROUGH UNDERWRITER MERRILL LYNCH & CO EACH NOTE IS EXCHANGEABLE INTO 7853 COMMON SHARES OF COLEMAN CO THE NOTES HAVE AN AGGREGATE PRINCIPAL AMOUNT AT MATURITY IN 2013 OF 500 MILLION THE YIELD TO MATURITY IS 725 A YEAR ON A SEMIANNUAL BONDEQUIVALENT BASIS TORCHMARK CORP 200 MILLION OF SENIOR NOTES DUE MAY 15 2023 PRICED AS 7 1/8 S AT 9892 TO YIELD 797 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 093 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH MORGAN STANLEY & CO LIUSKI INTERNATIONAL INC 12 MILLION COMMON SHARES PRICED AT 9 5/8 AND SOLD THROUGH REICH & CO OF NEW YORK AND FOLEY MUFSON HOWE & CO OF PHILADELPHIA NUVEEN CONNECTICUT PREMIUM INCOME MUNI FUND INITIAL OFFERING OF 46 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NUVEEN GEORGIA PREMIUM INCOME MUNI FUND INITIAL OFFERING OF 3350000 COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NUVEEN MISSOURI PREMIUM INCOME MUNI FUND INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NUVEEN NORTH CAROLINA PREMIUM INCOME MUNI FUND INITIAL OFFERING OF 56 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PUTNAM INVESTMENT GRADE INTERMEDIATE MUNICIPAL TRUST INITIAL OFFERING OF 32 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PUTNAM MUNI OPPORTUNITIES TRUST INITIAL OFFERING OF 15 MILLION SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY MERRIL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES GOLD 1544 IS BACKED BY FREDDIE MAC GOLD 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1467 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OFFERING OF STRIPPED MORTGAGEBACKED SECURITIES STRIPS TRUST 229 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES AND WAS LED BY FIRST BOSTON CORP NAMES OF COMANAGERS WERE NOT PROVIDED THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8141 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 294 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1993101 IS BACKED BY FANNIE MAE 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 77 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 1993104 IS BACKED BY STRIPS TRUST 229 INTERESTONLY AND PRINCIPALONLY STRIPS THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8141 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 294 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES THE OFFERING SERIES 1993103 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 100 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1993G23 IS BACKED BY CLASS A FROM FANNIE MAE'S REMIC 1992G35 WHICH IN TURN IS BACKED BY 8 1/2 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES ALLIANCE & LEICESTER BUILDING SOCIETY UK 150 MILLION OF FLOATING RATE EURONOTES DUE JUNE 1997 AT ISSUE PRICE PAR VIA KLEINWORT BENSON LTD REOFFERED AT 9961 INTEREST FLOATS AT 1875 BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE FOR STERLING FEES 049 POINT DE NATIONALE INVESTINGSBANK NV NETHERLANDS 10 BILLION PESETAS OF 10 1/2 EUROBONDS DUE JUNE 14 1999 AT ISSUE PRICE 1011 VIA BANCO DE NEGOCIOS ARGENTARIA BONDS YIELD 1059 ANNUAL AT BREAKEVEN PRICE FOR COMANAGERS FEES 1625 POINTS PETROLEOS MEXICANOS MEXICO 150 MILLION OF 6 1/4 EUROBONDS DUE JUNE 10 1996 AT ISSUE PRICE 10025 VIA DEUTSCHE BANK AG LONDON REOFFERED AT 9949 TO YIELD 644 SPREAD 183 BASIS POINTS OVER COMPARABLE US TREASURY NOTE FEES 1375 POINTS RABOBANK NEDERLAND NV NETHERLANDS 150 BILLION ITALIAN LIRE OF 10 3/8 EUROBONDS DUE JUNE 21 2000 AT ISSUE PRICE 1018 VIA BANCA COMMERCIALE ITALIANA YIELD 1039 ANNUAL AT BREAKEVEN PRICE FOR COMANAGING BANKS FEES 1875 POINTS 9305240080 930524 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AMERICAN SAFETY RAZOR INITIAL FIVE MILLION SHARES VIA SMITH BARNEY HARRIS UPHAM & CO ASTRO TANKERS LTD INITIAL FIVE MILLION SHARES VIA LEHMAN BROTHERS AUDIO/VIDEO AFFILIATES INC TWO MILLION SHARES 13 MILLION OFFERED BY THE COMPANY VIA PRUDENTIAL SECURITIES INC BLACKROCK CAL BLACKROCK FL BLACKROCK NJ BLACKROCK NY BLACKROCK PA INVESTMENT QUALITY MUNI TRUST FIVE OFFERINGS EACH OF FOUR MILLION SHARES VIA PRUDENTIAL SECURITIES BOOMTOWN INC 34 MILLION COMMON SHARES VIA OPPENHEIMER & CO INC CDW COMPUTER CENTERS INC INITIAL ONE MILLION COMMON SHARES VIA WILLIAM BLAIR & CO EDMARK CORP 575000 COMMON SHARES VIA PIPER JAFFRAY INC FILA HOLDINGS SPA INITIAL 75 MILLION AMERICAN DEPOSITORY RECEIPTS EACH REPR ESENTING FIVE COMMON SHARES VIA SALOMON BROTHERS INC FISERV INC 39 MILLION COMMON SHARES 14 MILLION OFFERED BY THE COMPANY VIA M ORGAN STANLEY & C0 FREMONT GENERAL CORP 24 MILLION COMMON SHARES TWO MILLION OFFERED BY THE COMP ANY VIA MERRILL LYNCH & CO GENERAL SIGNAL CORP 18 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP HAMILTON FINANCIAL SERVICES CORP INITIAL THREE MILLION COMMON SHARES 21 MILLI ON OFFERED BY THE COMPANY VIA ALEX BROWN & SONS INC HEALTHCARE REALTY TRUST INC INITIAL SIX MILLION COMMON SHARES VIA DONALDSON LU FKIN & JENRETTE HEILIGMEYERS CO TWO MILLION COMMON SHARES 16 MILLION IN THE US VIA GOLDMA N SACHS & CO HOLLYWOOD CASINO CORP INITIAL 53 MILLION CLASS A SHARES 48 MILLION OFFERED B Y THE COMPANY VIA SALOMON BROTHERS LOAN AMERICA FINANCIAL CORP ONE MILLION CLASS B SHARES VIA ROBINSONHUMPHREY C O INC LONE STAR STEAKHOUSE & SALOON INC FIVE MILLION COMMON SHARES 23 MILLION OFFER ED BY THE COMPANY VIA MONTGOMERY SECURITIES MADECO SA INITIAL 34 MILLION AMERICAN DEPOSITARY RECEIPTS EACH REPRESENTING 1 0 COMMON SHARES VIA SALOMON BROTHERS MARK CENTERS TRUST INITIAL 75 MILLION SHARES OF BENEFICIAL INTEREST VIA KIDDER PEABODY CO INC MFS COMMUNICATIONS CO INC INITIAL 85 MILLION COMMON SHARES VIA SALOMON BROTH ERS NUEVO ENERGY CORP 27 MILLION COMMON SHARES VIA PAINEWEBBER INC PANHANDLE EASTERN CORP NINE MILLION COMMON SHARES VIA MERRILL LYNCH PEOPLESOFT INC 16 MILLION COMMON SHARES 349000 OFFERED BY THE COMPANY VIA G OLDMAN SACHS PETROLEUM GEOSERVICES A/S 28 MILLION AMERICAN DEPOSITARY SHARES EACH REPRESENTING ONE COMMON SHARE VIA LEHMAN BROTHERS RESOURCE MORTGAGE GROUP INC FIVE MILLION COMMON SHARES VIA MONTGOMERY SECURITIES SANTA CRUZ OPERATION INC INITIAL 43 MILLION SHARES 38 MILLION OFFERED BY THE COMPANY VIA GOLDMAN SACHS SIGNAL TECHNOLOGY CORP INITIAL 17 MILLION COMMON SHARES 13 MILLION OFFERED B Y THE COMPANY VIA OPPENHEIMER SONAT OFFSHORE DRILLING INC INITIAL 155 MILLION COMMON SHARES VIA GOLDMAN SAC HS STATION CASINOS INC INITIAL 157 MILLION SHARES 43 MILLION OFFERED BY THE COMPANY VIA SALOMON BROTHERS TANGER FACTORY OUTLET CENTERS INC INITIAL 41 MILLION COMMON SHARES 39 MILLIO N OFFERED BY THE COMPANY VIA MERRILL LYNCH TRINET CORPORATE REALTY TRUST INITIAL 52 MILLION COMMON SHARES VIA MERRILL LYNCH WORLD ACCEPTANCE CORP SECONDARY OFFERING OF TWO MILLION SHARES VIA FIRST UNION AND PAINEWEBBER ZARING HOMES INC INITIAL TWO MILLION COMMON SHARES VIA DILLON READ & CO INC ILLINOIS 250 MILLION OF SERIES OF 1993 REFUNDING GENERAL OBLIGATION BONDS VIA COMPETITIVE BID FAIRFAX COUNTY VA 103 MILLION OF SERIES 1993B PUBLIC IMPROVEMENT BONDS VIA COMPETITIVE BID DADE COUNTY FLA 160 MILLION OF HOSPITAL REVENUE BONDS VIA A LEHMAN BROTHERS GROUP HAWAII 1315 MILLION OF 1993 GENERAL OBLIGATION BONDS VIA A MERRILL LYNCH GROUP MICHIGAN HOUSING DEVELOPMENT AUTHORITY 212 MILLION OF RENTAL HOUSING REVENUE BO NDS VIA A GOLDMAN SACHS GROUP NEW HAMPSHIRE HIGHER EDUCATIONAL & HEALTH FACILITIES AUTHORITY 118 MILLION OF SERIES 1993 HOSPITAL REVENUE BONDS FOR MARY HITCHCOCK MEMORIAL HOSPITAL VIA A MORGAN STANLEY GROUP NEW YORK CITY HEALTH & HOSPITALS CORP 550 MILLION OF 1993 SERIES A HEALTH SYST EM BONDS VIA A DILLON READ GROUP NEW YORK STATE DORMITORY AUTHORITY 800 MILLION OF REFUNDING REVENUE BONDS VIA A GOLDMAN SACHS GROUP NORTH CAROLINA MEDICAL CARE COMMISSION 190 MILLION OF HOSPITAL REVENUE BONDS V IA A MERRILL LYNCH GROUP SEATTLE WATER AUTHORITY WASH 253 MILLION OF WATER SYSTEM REFUNDING REVENUE BONDS VIA A MERRILL LYNCH GROUP 9305240079 930524 BUSINESS BRIEF BAUSCH & LOMB INC FIRM LOWERS PURCHASE PRICE FOR DAHLBERG CITES PROBE BAUSCH & LOMB INC CITING AN INTENSIFIED FEDERAL TRADE COMMISSION INVESTIGATION OF HEARING AID MAKER DAHLBERG INC SAID IT LOWERED ITS PROPOSED PURCHASE PRICE FOR THE COMPANY TO 21 A SHARE OR 139 MILLION THE PREVIOUS PROPOSED PRICE WAS 24 A SHARE OR 158 MILLION UNDER AN AMENDED PURCHASE AGREEMENT BAUSCH & LOMB WILL COMPLETE ITS ACQUISITION OF DAHLBERG BY AUG 28 THE CLOSURE OF THE PURCHASE WON'T BE AFFECTED BY REGULATORY RULINGS THE COMPANY SAID IN ROCHESTER NY THE FTC IS INVESTIGATING DAHLBERG'S ADVERTISING FOR ITS MIRACLE EAR HEARING AIDS LIKE MANY HEARING AID MAKERS THE COMPANY MAKES THE CLAIMS THAT ITS CLARIFIER AUTOMATIC SIGNAL PROCESSOR TECHNOLOGY AMPLIFIES VOICES WHILE SCREENING OUT BACKGROUND NOISE IN RECENT WEEKS THE FOOD AND DRUG ADMINISTRATION SENT WARNING LETTERS TO SIX HEARING AID MAKERS INCLUDING DAHLBERG ABOUT SUCH CLAIMS DAHLBERG SAID AN INDEPENDENT TESTING COMPANY TWIN CITY TESTING OF MINNEAPOLIS HAS VERIFIED THAT ITS CLARIFIER TECHNOLOGY WORKS AS ADVERTISED 9305240078 930524 BUSINESS BRIEF KOMATSU LTD CONSOLIDATED PRETAX PROFIT FOR FISCAL YEAR DECLINED 27 KOMATSU LTD TOKYO REPORTED CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 DROPPED 27 AS BOTH PRIVATE CONSTRUCTION ACTIVITY AND EQUIPMENT PURCHASES WILTED DURING THE YEAR THE MAJOR JAPANESE MAKER OF CONSTRUCTION MACHINERY POSTED CONSOLIDATED PRETAX PROFIT OF 3076 BILLION YEN 2783 MILLION COMPARED WITH 4191 BILLION YEN SALES FELL 54 TO 86993 BILLION YEN FROM 91975 BILLION YEN KOMATSU PREDICTED ITS CONSOLIDATED PRETAX PROFIT FOR YEAR ENDING MARCH 31 WILL BE LITTLE CHANGED FROM THE LATEST RESULTS AS JAPANESE EQUIPMENT INVESTMENT IS EXPECTED TO CONTINUE TO BE WEAK AND THE YEN'S APPRECIATION CUTS INTO THE VALUE OF THE COMPANY'S OVERSEAS EARNINGS BUT NET PROFIT WILL REBOUND AND SALES WILL PUSH HIGHER AS THE DOMESTIC ECONOMY IS LIFTED BY STRONG GOVERNMENT STIMULUS MEASURES THE COMPANY FORECAST NET PROFIT FELL 72 TO 304 BILLION YEN FROM 1090 BILLION YEN THE COMPANY EXPECTS NET PROFIT TO MORE THAN TRIPLE TO 10 BILLION YEN 9305240077 930524 BUSINESS BRIEF MARVEL ENTERTAINMENT GROUP INC DEAL IS REACHED TO TRANSLATE COMIC CHARACTERS TO CHINESE MARVEL ENTERTAINMENT GROUP INC SAID IT IS TEAMING WITH A TAIWANESE COMPANY TO LAUNCH THE FIRST CHINESELANGUAGE COMIC BOOKS FEATURING SPIDERMAN AND OTHER MARVEL CHARACTERS JON LANG EXECUTIVE VICE PRESIDENT OF MARVEL SAID THE NEW YORKBASED COMICBOOK PUBLISHER PLANS TO EXPAND ITS BUSINESS TO CHINA NEXT YEAR UNDER THE AGREEMENT WANG FILM PRODUCTION A MAJOR TAIWANBASED CARTOON PRODUCTION COMPANY WILL PUBLISH SELL AND PROMOTE MARVEL'S PRODUCTS WHICH INCLUDE MORE THAN 3000 CHARACTERS LANG SAID THAT PLANS ALSO CALL FOR A 65HOUR XMEN TELEVISION SERIES JAMES WANG PRESIDENT OF WANG FILM PRODUCTION TAIPEI TAIWAN ATTRIBUTED THE PARTNERSHIP PARTLY TO TAIWAN'S EFFORTS TO PROTECT INTELLECTUALPROPERTY RIGHTS UNDER US PRESSURE TAIWAN'S GOVERNMENT HAS REVISED LAWS AND INTENSIFIED ITS CRACKDOWN ON PIRATERS OF BOOKS AND FILMS 9305240076 930524 INTERNATIONAL US TURNS ATTENTION TO NORTH KOREA CLINTON TO INTENSIFY EFFORTS TO FORCE PYONGYANG TO END NUCLEAR ARMS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US IS LAUNCHING A MAJOR DIPLOMATIC EFFORT TO DIVORCE NORTH KOREA FROM ITS NUCLEAR WEAPONS PROGRAM PART OF THE MOVE WHICH INVOLVES THE COOPERATION OF CHINA AND JAPAN WILL INCLUDE HIGHLEVEL TALKS BETWEEN US AND NORTH KOREAN OFFICIALS THAT COULD BEGIN AS EARLY AS THIS WEEK IN NEW YORK WHILE THE CLINTON ADMINISTRATION'S RECENT DELIBERATIONS OVER BOSNIA HAVE SEEMED TO ECLIPSE ITS EFFORTS ON NORTH KOREA THE US HAS FAR MORE AT STAKE THERE BECAUSE THE 36500 US TROOPS IN SOUTH KOREA WOULD BE DRAWN INTO ANY MILITARY CRISIS ON THE PENINSULA THIS IS A VERY WORRISOME PROPOSITION SAYS ONE US OFFICIAL WHO ADDED THAT RECENT CHANGES IN THE POLITICAL MILITARY AND ECONOMIC SITUATION IN PYONGYANG HAVE COMBINED TO INCREASE US CONCERNS ABOUT THE ISOLATED COUNTRY THE PROBLEMS COULD REACH A CRUCIAL STAGE NEXT MONTH WHEN NORTH KOREA IS SCHEDULED TO WITHDRAW FROM THE NUCLEAR NONPROLIFERATION TREATY THE FIRST NATION TO DO SO THE CHANGES THE OFFICIAL SAYS HAVE ALSO MADE IT DIFFICULT FOR THE US TO PREDICT DEVELOPMENTS IN THE COUNTRY BECAUSE WE ARE DEALING WITH A DIFFERENT NORTH KOREA TODAY THAN WE WERE FIVE YEARS AGO THE FIRST CHANGE IS THE APPARENT SUCCESSION OF KIM JONG IL 51 YEARS OLD THE LITTLEKNOWN SON OF KIM IL SUNG THE 81YEAROLD DICTATOR WHO HAS HELD UNQUESTIONED SWAY OVER NORTH KOREA SINCE 1950 KONGDAN OH AN ANALYST OF NORTH KOREA FOR THE RAND CORP SAYS KIM JONG IL LACKING THE CHARISMA OF HIS FATHER USED THE DECISION TO BEEF UP HIS DOMESTIC IMAGE AS A NEW BRILLIANT STRATEGIST WHO WILL SAVE THIS COUNTRY IN TIME OF CRISIS SHE NOTES THAT HE BECAME MILITARY COMMANDERINCHIEF ON APRIL 9 AND SAYS THE DECISION TO WITHDRAW MAY HAVE HELPED BOLSTER HIS RELATIONSHIP WITH HIS GENERALS UNLIKE HIS FATHER WHO GAINED FAME FIGHTING THE JAPANESE AS A RESISTANCE LEADER IN THE 1930S KIM JONG IL HAS FEW MILITARY CREDENTIALS HE'S A VERY COMPLICATED PERSON SAYS MS OH VERY QUICKTEMPERED VERY BRIGHT ON CERTAIN SUBJECTS SUCH AS ART MUSIC AND ARCHITECTURE BUT SHE ADDS POLITICALLY AND MAYBE MILITARILY HE HAS A LOT OF PROBLEMS DESPITE THE DIFFERENCES BETWEEN FATHER AND SON DAE SOOK SUH DIRECTOR OF KOREAN STUDIES AT THE UNIVERSITY OF HAWAII SAYS HE VISITS NORTH KOREA ONCE A YEAR AND HAS YET TO SEE OPPOSITION AGAINST THE SON IF THEY GO TO WAR YOU WON'T SEE UNIVERSITY STUDENTS STANDING IN FRONT OF THE TANKS THEY WILL BE DRIVING THE TANKS CHANGES IN NORTH KOREA'S MILITARY ARE THE SECOND PART OF THE PUZZLE IN THE LATE1980S AS OTHER MAJOR MILITARY FORCES IN THE WORLD BEGAN TO SHRINK US ANALYSTS WERE STARTLED TO FIND NORTH KOREA'S ARMY HAD GROWN 23 THE NATION OF 22 MILLION HAS A STAGGERING 12 MILLION UNDER ARMS GEN ROBERT W RISCASSI COMMANDER OF US FORCES IN SOUTH KOREA RECENTLY TOLD A SENATE COMMITTEE THAT NORTH KOREA'S FORCES ARE EQUIPPED TRAINED AND POSITIONED TO CARRY OUT A SURPRISE ATTACK AGAINST SOUTH KOREA WE ARE INCREASINGLY CONCERNED THAT NORTH KOREA COULD SLIDE INTO AN ATTACK AS AN UNCONTROLLABLE CONSEQUENCE OF TOTAL DESPERATION OR INTERNAL INSTABILITY BOB GASKIN AN AIR FORCE COLONEL WHO SERVED AS ASSISTANT DIRECTOR OF THE PENTAGON'S OFFICE OF NET ASSESSMENT SAYS HE CONDUCTED A TWOYEAR STUDY OF THE KOREAN MILITARY SITUATION FOR THE DEFENSE DEPARTMENT THE STILLSECRET STUDY HE SAYS CONCLUDED THAT NORTH KOREA'S CONVENTIONAL FORCES HAVE BECOME SO OVERWHELMING THAT THEY COULD BREAK SOUTH KOREAN DEFENSES AND TAKE SEOUL IN AS LITTLE AS TWO TO THREE DAYS THE US FORCES INVOLVED SAID MR GASKIN WHO RETIRED IN 1991 WOULD EITHER BE SWEPT UP OR WIPED OUT THE PENTAGON HAD NO COMMENT ON THE REPORT WHICH A SPOKESMAN SAID WAS ONE OF A NUMBER USED FOR CONTINGENCY PLANNING WE DO NOT COMMENT ON CONTINGENCY PLANNING FOR OPERATIONAL SECURITY REASONS A SPOKESMAN SAID IT ISN'T CLEAR IF THE NORTH KOREAN ARSENAL INCLUDES NUCLEAR WEAPONS BUT INSPECTORS OF THE INTERNATIONAL ATOMIC ENERGY AGENCY SUSPECT PYONGYANG CONCEALED A WEAPONS PROGRAM AT YONGBYON A SUPPOSEDLY PEACEFUL NUCLEAR RESEARCH COMPLEX 60 MILES NORTH OF PYONGYANG NORTH KOREA HAD HALTED CONSTRUCTION AT ONE YONGBYON FACILITY THAT THE US CLAIMS IS A PLUTONIUM REPROCESSING PLANT BUT THE CONSTRUCTION HAS BEGUN AGAIN SAYS PETER HAYES AN ANALYST FOR A PRIVATE RESEARCH COMPANY IN BERKELEY CALIF MR HAYES SAYS THAT DURING A TRIP TO NORTH KOREA THIS MONTH HE WAS TOLD CREWS WERE WORKING FLAT OUT PLUTONIUM IS A KEY COMPONENT OF NUCLEAR WARHEADS MR HAYES AUTHOR OF A BOOK ON NORTH KOREA'S NUCLEAR EFFORTS SAYS PYONGYANG OFFICIALS TOLD HIM THEY WOULD RECONSIDER SUSPENDING THEIR WITHDRAWAL FROM THE TREATY IF THEY GOT HELP FOR THEIR AILING ECONOMY WHICH IS NO LONGER PROPPED UP BY CHINA AND RUSSIA THE NORTH WANTS TRADE SANCTIONS AGAINST IT REMOVED HE SAID AND IT WANTS AMERICAN INVESTMENT MR HAYES SAW NO SIGNS OF FOOD RIOTS OR LARGE MILITARY MANEUVERS NEAR PYONGYANG'S AIRPORT THE SUBJECTS OF RECENT NEWS REPORTS BUT HE SAID SIGNS OF PYONGYANG'S FALTERING ECONOMY ARE EVIDENT I KNOW THAT THEY'RE OPERATING AT BETWEEN 40 AND 50 OF THEIR ELECTRICAL CAPACITY THOUGH IT SEEMS UNLIKELY THAT THE US OR ANY MAJOR INDUSTRIAL COUNTRY WOULD CONSIDER INVESTING IN ONE OF THE WORLD'S LAST BASTIONS OF STALINISM NORTH KOREA THIS MONTH SIGNED AN AGREEMENT WITH FIVE NEIGHBORING NATIONS AND THE UNITED NATIONS DEVELOPMENT PROGRAM TO LEASE LAND TO FOREIGN INVESTORS HERBERT BEHRSTOCK A UN OFFICIAL WHO PRESIDED AT THE SIGNING CALLS IT A SIGNIFICANT STEP TOWARD DEVELOPING A MAJOR INDUSTRIAL COMPLEX AND PORT FACILITY IN THE TUMEN RIVER DELTA AREA IN THE NORTHEAST CORNER OF NORTH KOREA WHERE IT ADJOINS CHINA AND RUSSIA THE PROJECT WOULD INCLUDE LAND FROM ALL THREE TERRITORIES UNDER INTERNATIONAL MANAGEMENT THEY'RE SENDING A MESSAGE TO PEOPLE WHO WANT TO LISTEN THAT THEY WANT TO CONTINUE WITH THESE ACTIVITIES SAYS MR BEHRSTOCK HE SAYS PLANNERS FROM JAPAN AND CHINA HAVE DESCRIBED THE PROJECT IN TERMS OF A FUTURE HONG KONG 9305240075 930524 DISTRESSED REAL ESTATE LURES WALL STREET POWERHOUSES BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ENTICED BY POTENTIAL RETURNS MATCHING THOSE OF JUNK BONDS AND OTHER GOGO INVESTMENTS IN THE ROARING 1980S SOME OF WALL STREET'S BIGGEST NAMES ARE PREPARING TO INVEST HUNDREDS OF MILLIONS OF DOLLARS IN DISTRESSED REAL ESTATE LEON BLACK THE ONETIME HEAD OF MERGERS AND ACQUISITIONS AT DREXEL BURNHAM LAMBERT INC INVESTOR WARREN BUFFETT AND OFFSHORE FUND MANAGER GEORGE SOROS ARE AMONG THE HEAVY HITTERS WHO HAVE EITHER MADE REAL ESTATE INVESTMENTS OR ARE LOOKING TO DO SO SO ARE BLUEBLOOD BANKERS JP MORGAN & CO AND ODYSSEY PARTNERS AN INVESTMENT BOUTIQUE THAT HAS BEEN ACTIVE IN LEVERAGED BUYOUTS MANY OTHERS ARE SAID TO BE SNIFFING AROUND FOR ASSETS AND PARTNERS MANY SOPHISTICATED INVESTORS WHO AREN'T IN REAL ESTATE HAVE IDENTIFIED A WAY TO MAKE MONEY IN THE INDUSTRY SAYS WILLIAM WARDROP JR OF LASALLE PARTNERS LTD A CHICAGO REAL ESTATE ADVISORY FIRM ALL OF THESE FOLKS ARE CIRCLING LIKE VULTURES IN THE 1980S OPPORTUNISTIC INVESTORS FLOCKED TO JUNK BONDS HEDGE FUNDS AND CORPORATE TAKEOVERS IN PURSUIT OF DOUBLEDIGIT RETURNS REAL ESTATE PURCHASES WHICH THEN OFFERED 7 TO 8 RETURNS PALED IN COMPARISON BUT NOW WITH MANY LENDERS LOOKING TO GET OUT OF SLUMPING REAL ESTATE AT ALL COSTS THERE IS A LARGE MARKET IN DISTRESSED LOANS AND PROPERTIES EXPERIENCED REAL ESTATE INVESTORS FORECASTING ANNUAL RETURNS OF UP TO 25 HAVE BEEN SNAPPING UP POOLS OF THEM FOLLOWING THE LEAD OF SUCH FIRMS AS MERRILL LYNCH & CO GOLDMAN SACHS & CO AND MORGAN STANLEY GROUP INC THE NEWCOMERS ARE SEEKING A PIECE OF THE MARKET FOR THEMSELVES THEY NOW SEE THAT REAL ESTATE IS COMING UP TO A PRICING MECHANISM THAT IS CLOSE TO THE YIELDS THEY USED TO SEE SAYS WILLIAM STERN OF SONNENBLICKGOLDMAN CO A NEW YORK REAL ESTATE BROKERAGE AND FINANCING FIRM IT'S CLOSE TO JUNKBOND YIELDS LEON BLACK WHOSE APOLLO ADVISERS HAS PUMPED BILLIONS OF DOLLARS INTO THE JUNKBOND MARKET OVER THE PAST FEW YEARS HAS JUST RAISED ABOUT 500 MILLION FROM EUROPEAN INSTITUTIONS AND INDIVIDUALS TO INVEST IN TROUBLED PROPERTIES AND LOANS HE PLANS TO USE THE FUND APOLLO REAL ESTATE INVESTMENTS TO LEVERAGE MORE THAN 1 BILLION IN PURCHASES IN REAL ESTATE THE NEXT FIVE TO 10 YEARS LOOKS TO BE A GOOD TIME TO MAKE INVESTMENTS SAYS APOLLO PARTNER JOHN HANNAN WHO DECLINED FURTHER COMMENT ON THE FIRM'S STRATEGY OR TO REVEAL HOW MUCH OF ITS OWN MONEY IT PLANS TO INVEST INVESTING IN DISTRESSED REAL ESTATE IS A TRICKY BUSINESS BECAUSE PROPERTIES AND LOANS ARE ILLIQUID AND THE PERFORMANCE OF SPECIFIC ASSETS DON'T ALWAYS JIBE WITH THAT OF THE OVERALL REAL ESTATE MARKET TO COMPENSATE FOR THEIR INEXPERIENCE MANY OF THE NEWCOMERS ARE BRINGING IN EXPERIENCED PROFESSIONALS TO LEND A HAND APOLLO HAS HIRED W EDWARD SHEETS FORMERLY A PRINCIPAL AT DALLASBASED TRAMMELL CROW CO AND IS BRINGING IN NEW JERSEY OFFICE DEVELOPER WILLIAM MACK TO HELP MANAGE THE FUND THE FUND HAS BEEN BIDDING ON RESOLUTION TRUST CORP POOLS AND RECENTLY WON A 16 MILLION DEAL EXECUTIVES AT BERKSHIRE HATHAWAY INC MR BUFFETT'S OMAHABASED INVESTMENT COMPANY HAVE BEGUN CALLING ON NEW YORK REAL ESTATE PROFESSIONALS TO INQUIRE ABOUT BUYING REAL ESTATE LOANS ACCORDING TO SEVERAL INDIVIDUALS FAMILIAR WITH THE INQUIRIES MR BUFFETT IS CONSIDERING INVESTING BETWEEN 200 MILLION AND 300 MILLION IN REAL ESTATE DEBT EITHER BY BUYING EXISTING LOANS OR EXTENDING NEW ONES TO BORROWERS WHOSE EXISTING LENDERS WANT OUT MR BUFFETT'S INTENTION SAY PEOPLE ACQUAINTED WITH HIS PLANS IS TO BENEFIT FROM THE WIDER LENDING SPREADS AVAILABLE ON REAL ESTATE ARISING FROM THE RELUCTANCE OF OTHER LENDERS TO EXTEND CREDIT NOT TO FORECLOSE AND ACQUIRE PROPERTY HIS VIEW IS THAT THERE'S A CREDIT DISCREPANCY IN THE MARKETPLACE BECAUSE OF THE NEGATIVE CONNOTATION OF REAL ESTATE SAYS ONE REAL ESTATE INVESTMENT BANKER AS A RESULT THE RISKREWARD RATIO IS FAVORABLE TRUE TO MR BUFFETT'S CONSERVATIVE INVESTMENT REPUTATION THIS STRATEGY IS NOT CONSIDERED AS RISKY AS BUYING SOURED LOANS WITH THE INTENTION OF FORECLOSING OR BUYING FORECLOSED PROPERTY DIRECTLY IT'S TOO PRELIMINARY TO COMMENT ON SAYS A SPOKESWOMAN FOR BERKSHIRE HATHAWAY ADDING THAT THE FIRM HAS DONE NOTHING IN REAL ESTATE THUS FAR JP MORGAN SECURITIES INC JP MORGAN & CO'S INVESTMENT BANKING ARM HAS ADVISED CLIENTS ON REAL ESTATE FOR YEARS BUT NOW IT'S RAISING ITS FIRSTEVER REAL ESTATE FUND IN PARTNERSHIP WITH THE NEW YORK DEVELOPER JERRY O'CONNOR THE PARTNERS INTEND TO RAISE ABOUT 500 MILLION TO INVEST IN REAL ESTATE PORTFOLIOS BEING SHED BY FINANCIAL INSTITUTIONS ACCORDING TO TWO PEOPLE FAMILIAR WITH THE EFFORT BOTH PARTIES DECLINED TO COMMENT ODYSSEY PARTNERS BASED IN NEW YORK HAS ALSO BEGUN PLAYING THE REAL ESTATE MARKET LAST YEAR THE INVESTMENTMANAGEMENT FIRM INVESTED IN THE 350 MILLION PURCHASE OF A POOL OF LOANS FROM THE RTC ALONG WITH BANKERS TRUST AND STERLING AMERICAN LP OFFICIALS AT ODYSSEY COULDN'T BE REACHED FOR COMMENT MR SOROS WHO OVERSEES THE QUANTUM FUND SAID IN FEBRUARY HE WAS SETTING UP A 525 MILLION REAL ESTATE FUND TO BE MANAGED BY PAUL REICHMANN A FORMER CONTROLLING SHAREHOLDER OF THE OLYMPIA & YORK PROPERTY EMPIRE THE FUND IS THOUGHT TO BE CONSIDERING A DEAL IN MEXICO OTHER PROMINENT INVESTORS ALSO ARE SNIFFING AROUND THE MARKET ACCORDING TO REAL ESTATE PROFESSIONALS ONE INVESTMENT BANKER SAYS A REPRESENTATIVE OF INVESTOR CARL ICAHN CONTACTED HIM ABOUT POSSIBLE DEALS MR ICAHN DIDN'T RETURN A PHONE CALL SEEKING COMMENT SEVERAL MONTHS AGO LEVERAGED BUYOUT SPECIALIST KOHLBERG KRAVIS ROBERTS & CO WAS SAID TO BE LOOKING TO HIRE A REAL ESTATE INVESTMENT EXPERT A SPOKESWOMAN FOR FIRM DECLINED COMMENT 9305240074 930524 BUSINESS BRIEF JC PENNEY CO RETAILER EXPECTS TO REGISTER 57 SALES GAIN THIS YEAR JC PENNEY CO EXPECTS TO POST A 5 TO 7 SALES GAIN FOR THE CURRENT FISCAL YEAR WILLIAM R HOWELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID AT THE ANNUAL MEETING FOR THE FISCAL YEAR ENDED JAN 30 THE PLANO TEXAS RETAILER REPORTED SALES OF 18 BILLION MR HOWELL SAID HE EXPECTS THE PENNEY CATALOG DIVISION WHICH WILL BENEFIT FROM THE DEMISE OF THE SEARS ROEBUCK & CO CATALOG TO POST PERCENTAGE SALES GAINS IN THE LOW TEENS FOR THE SECOND HALF OF THIS YEAR SHAREHOLDERS REJECTED TWO RESOLUTIONS ONE CALLING FOR ANNUAL ELECTION OF DIRECTORS TO REPLACE A STAGGERED SYSTEM OF MOSTLY THREEYEARTERMS AND ANOTHER PROPOSED BY THE AMALGAMATED TEXTILE AND CLOTHING WORKERS UNION THAT CALLED FOR ALLOWING A SHAREHOLDER VOTE ON THE COMPANY'S POISON PILL STOCKPURCHASE PLAN 9305240073 930524 EC OFFICIALS SAY DEFENSE OF A CURRENCY LIES PRIMARILY WITH THE MEMBER INVOLVED BY BOB HAGERTY STAFF REPORTER OF THE WALL STREET JOURNAL KOLDING DENMARK THE TECHNOCRATS WHO SUPERVISE THE EC'S EXCHANGERATE MECHANISM HAVE A MESSAGE FOR PARTICIPATING COUNTRIES WITH WOBBLY CURRENCIES CLEAN UP YOUR OWN BACKYARD TWO REPORTS RELEASED HERE ONE FROM EC CENTRAL BANK GOVERNORS AND THE OTHER FROM SENIOR MONETARY OFFICIALS MADE CLEAR THAT COUNTRIES WITH STRONG CURRENCIES HAVE NO AUTOMATIC OBLIGATION TO INTERVENE IN THE FOREIGNEXCHANGE MARKET TO PROP UP WEAKER CURRENCIES IN THE MECHANISM KNOWN AS THE ERM THE DEFENSE OF A CURRENCY'S EXCHANGE RATE REMAINS PRIMARILY THE RESPONSIBILITY OF THE COUNTRY CONCERNED THE EC CENTRAL BANK REPORT SAID IT SAID HELP FROM OTHER CENTRAL BANKS SOMETIMES CAN BE EFFECTIVE BUT DESCRIBED THAT HELP AS VOLUNTARY SPANISH AND IRISH OFFICIALS RESENT WHAT THEY SEE AS A MUCH GREATER WILLINGNESS OF GERMANY'S BUNDESBANK TO SUPPORT THE FRENCH FRANC THAN TO HELP SMALLER MEMBER STATES DEFEND THEIR CURRENCIES SPAIN'S FINANCE MINISTER CARLOS SOLCHAGA EXPRESSED RESERVATIONS OVER THE REPORTS AND SAID MORE COULD BE DONE TO REINFORCE THE ERM IN THE PAST SPAIN HAS PROPOSED THAT EC CENTRAL BANKS POOL RESERVES TO CREATE A FUND FOR BUYING AND SELLING CURRENCIES IN THE MARKET IN AN ATTEMPT TO AVOID UNNECESSARY REALIGNMENTS OF THE ERM BUT THAT IDEA FOUND LITTLE FAVOR ELSEWHERE IN THE EC RATHER THAN MAJOR CHANGES IN THE ERM THE REPORTS BOTH PRESCRIBED BETTER USE OF TRADITIONAL ERM METHODS OF RESISTING CURENCY CHAOS ADHERING TO ANTIINFLATIONARY POLICIES QUICKLY RAISING SHORTTERM INTEREST RATES WHEN NEEDED TO DISSUADE SPECULATORS FROM DUMPING A CURRENCY AND MOVING PROMPTLY TO DEVALUE CURRENCIES WHEN IT BECOMES CLEAR THAT FLUCTUATION RANGES SET BY THE ERM ARE NO LONGER REALISTIC ACCEPTANCE OF PERIODIC DEVALUATIONS IS A REPUDIATION OF THE PREVAILING SENTIMENT IN THE FIVE YEARS ENDED LAST SEPTEMBER THE GOLDEN AGE OF ERM STABILITY DURING THAT PERIOD MANY EUROPEAN POLITICANS CAME TO REGARD DEVALUATIONS AS A DISGRACE THAT WOULD RAISE QUESTIONS OVER A COUNTRY'S COMMITMENT TO MONETARY UNION THE NEW APPROACH IS A RERUN OF THE PRE1987 PRACTICE OF REALIGNING THE ERM FROM TIME TO TIME WHILE TRYING TO KEEP THE YOYOING OF CURRENCY VALUES TO A MINIMUM BUT THAT TASK HAS GROWN FAR TRICKIER OVER THE PAST FEW YEARS EC MEMBER STATES HAVE ELIMINATED MOST CONTROLS ON CROSSBORDER TRANSFERS OF CAPITAL ALLOWING HUGE SUMS TO ZAP WHEREVER INVESTORS THINK THEY WILL GET THE BEST RETURN WORLDWIDE THE VOLUME OF CURRENCY TRADING HAS EXPLODED TO AN ESTIMATED AVERAGE OF 900 BILLION A DAY MONEY THAT CAN EASILY OVERWHELM THE RELATIVELY MEAGER AMOUNTS CENTRAL BANKS CAN SUMMON FROM THEIR RESERVES TO COPE WITH TODAY'S UNRULY MARKETS THE MONETARY OFFICIALS' REPORT SUGGESTED DEVISING A SET OF SECRET ECONOMIC INDICATORS TO TIP OFF AUTHORITIES WHEN A CURRENCY IS IN DANGER OF BECOMING UNCOMPETITIVE AND THUS RIPE FOR DEVALUATION THE GOAL WOULD BE TO OUTSMART TRADERS BY MAKING MODEST DEVALUATIONS BEFORE IT BECOMES OBVIOUS TO TRADERS THAT SUCH A STEP IS INEVITABLE WHEN A DEVALUATION BECOMES PREDICTABLE TRADERS CAN PILE UP BIG PROFITS BY SELLING THE CURRENCY EARLY THAT SOMETIMES FORCES AUTHORITIES TO ACCEPT A BIGGER DEVALUATION THAN WOULD HAVE BEEN NEEDED ON PURE ECONOMIC GROUNDS BUT OFFICIALS CONCEDED THAT IT IS DIFFICULT FOR POLITICIANS TO FACE UP QUICKLY TO THE SENSITIVE QUESTION OF WHEN A CURRENCY SHOULD BE DEVALUED SPAIN'S DEVALUATION OF THE PESETA THIS MONTH WAS CONSIDERED A BIG BLOW FOR THE RULING SOCIALIST PARTY AS IT PREPARES FOR ELECTIONS NEXT MONTH EACH COUNTRY'S AUTHORITIES MUST LEARN TO FACE UNPLEASANT FACTS AND PROMPTLY TAKE ACTION TO WIN THE MARKET'S CONFIDENCE THE REPORT SAID AT PRESENT THE ERM GENERALLY WORKS ON THE ASSUMPTION THAT THE COUNTRY WHOSE RATES ARE OUT OF LINE TAKES THE INITIATIVE IN ASKING THE OTHERS FOR AN ADJUSTMENT IN THE PARITIES THE REPORT SAID IN THE FUTURE IT SAID OTHER MEMBER STATES SHOULD BE ABLE TO TAKE THE INITIATIVE AND CALL FOR TALKS ON REALIGNING A FELLOW MEMBER STATE'S SINGULAR WAYWARD CURRENCY BEFORE LAST SEPTEMBER'S FALL OF THE BRITISH POUND GERMAN OFFICIALS MADE IT KNOWN PRIVATELY THAT THEY FELT THE POUND WAS DANGEROUSLY OVERVALUED AGAINST THE MARK BUT LONDON AND BONN NEVER CAME TO TERMS ON THE QUESTION BEFORE A CRISIS ERUPTED PUSHING A MEMBER STATE TO DEVALUE WOULD BE A DELICATE POLITICAL STEP IN THESE CASES THE MONETARY REPORT SAID THERE IS A PARTICULAR NEED FOR CONFIDENTIAL PROCEDURES AS FOR TUBTHUMPING PRONOUNCEMENTS BY POLITICIANS IN AN EFFORT TO RALLY TRADERS' SUPPORT FOR A CURRENCY BOTH REPORTS WERE SKEPTICAL THE CENTRAL BANKERS WARNED THAT SUCH STATEMENTS CAN BACKFIRE AND UNDERMINE A COUNTRY'S CREDIBILITY IN THE MARKET UNLESS BACKED BY FIRM ACTION 9305240072 930524 BUSINESS BRIEF PIONEER ELECTRONIC CORP PRETAX PROFIT IN FISCAL YEAR FELL 52 STRONG YEN IS CITED PIONEER ELECTRONIC CORP SAID ITS CONSOLIDATED PRETAX PROFIT SANK 52 IN THE FISCAL YEAR ENDED MARCH 31 PRIMARILY DUE TO LOWER SALES IN JAPAN AND THE STRONG YEN THE TOKYOBASED MAKER OF AUDIO AND VIDEO PRODUCTS REPORTED PRETAX PROFIT OF 2845 BILLION YEN 2574 MILLION DOWN FROM 5870 BILLION YEN THE YEAR EARLIER SALES FOR THE YEAR FELL 4 TO 58971 BILLION YEN TO 61301 BILLION YEN THE COMPANY SAID IT EXPECTS INTENSIFIED COMPETITION IN JAPAN IN ITS CURRENT FISCAL YEAR AND PLANS TO TRIM CAPITAL INVESTMENT AND MANUFACTURING COSTS A SPOKESMAN SAID PIONEER EXPECTS DECLINING PROFIT AS US AND EUROPEAN AUDIO DEMAND SLOWS AND THE YEN REMAINS STRONG A STRONG CURRENCY AT HOME MEANS INCOME DERIVED IN FOREIGN RELATIVELY WEAKER CURRENCIES IS CONVERTED TO YEN AT UNFAVORABLE RATES 9305240071 930524 BUSINESS BRIEF TRANS WORLD AIRLINES FIRSTQUARTER LOSS WIDENED DUE TO PENSION SETTLEMENT TRANS WORLD AIRLINES' FIRSTQUARTER LOSS WIDENED TO 3036 MILLION FROM 868 MILLION REFLECTING A SETTLEMENT TO HELP MAKE UP A SHORTAGE IN ITS PENSION FUND TWA WHICH IS OPERATING UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE PAID 3424 MILLION TO THE PENSION BENEFIT GUARANTEE CORP EARLIER THIS YEAR TO END A DISPUTE OVER UNDERFUNDED PENSION PLANS THE DISPUTE HAD BEEN THE LAST MAJOR OBSTACLE TO THE REORGANIZATION OF TWA WHICH IS BASED IN KANSAS CITY MO WITHOUT THE BIG CHARGE TWA'S OPERATING LOSS NARROWED 10 PARTLY REFLECTING A 14 INCREASE IN YIELD OR THE AVERAGE PRICE PER TICKET SOLD BUT DESPITE A DECLINE IN THE NUMBER OF SEATS AVAILABLE ON ITS CARRIERS TWA'S LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED FELL TO 58 FROM 64 IN THE FIRST QUARTER REVENUE AND EXPENSES DECLINED 23 AND 22 RESPECTIVELY REFLECTING SOME OPERATIONS THAT WERE CLOSED LAST YEAR 9305240070 930524 BUSINESS BRIEF RICOH CO PRETAX EARNINGS CLIMB 59 RESTRUCTURING PROGRAM CITED RICOH CO A JAPANESE MAKER OF OFFICE AUTOMATION EQUIPMENT REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT ZOOMED 59 TO 1689 BILLION YEN 153 MILLION IN THE YEAR ENDED MARCH 31 FROM A YEAR EARLIER THE COMPANY ATTRIBUTED THE JUMP IN PROFITABILITY TO A RESTRUCTURING PROGRAM UNDER WHICH UNPROFITABLE PRODUCT LINES HAVE BEEN ELIMINATED A SPOKESMAN SAID THAT BECAUSE RICOH BEGAN RESTRUCTURING LONG BEFORE MOST MAJOR JAPANESE CONCERNS IT WAS ABLE TO REAP THE BENEFITS SOONER RICOH'S RESTRUCTURING BEGAN IN EARNEST IN OCTOBER 1991 THE SPOKESMAN SAID RICOH SAID IT SEES FLAT SALES AND PROFIT RISING FURTHER IN THE CURRENT FISCAL YEAR THE COMPANY SAID THAT ALTHOUGH THE PICKUP IN THE US ECONOMY WOULD SEEM TO POINT TO AN INCREASE IN REVENUE THE EUROPEAN ECONOMY IS LIKELY TO REMAIN SLUGGISH AND THE JAPANESE ECONOMY WILL TAKE TIME TO RETURN TO HEALTH 9305240069 930524 BUSINESS BRIEF OLYMPIA & YORK DEVELOPMENTS MOTION FOR US SUBSIDIARY TO GET COURT RULING TODAY A US BANKRUPTCY COURT JUDGE SAID HE WOULD RULE TODAY ON A CITIBANK MOTION TO APPOINT AN OFFICER TO HEAD THE US SUBSIDIARY OF OLYMPIA & YORK DEVELOPMENTS LTD CITIBANK A UNIT OF CITICORP WANTS JOHN ZUCCOTTI PRESIDENT OF THE US UNIT OLYMPIA & YORK COS USA TO BE NAMED RESPONSIBLE OFFICER FOR THE COMPANY AT LEAST UNTIL AN INDEPENDENT BOARD CAN BE NAMED CITIBANK SAID IT WANTS EITHER MR ZUCCOTTI OR A US TRUSTEE TO OVERSEE THE APPOINTMENT OF THE O&Y USA BOARD THE MOVE WAS OPPOSED IN A LENGTHY COURT SESSION FRIDAY BY THE CANADIAN ADMINISTRATOR FOR OLYMPIA & YORK DEVELOPMENTS THE TORONTO REAL ESTATE CONCERN THAT EMERGED FROM CANADIAN BANKRUPTCY COURT PROTECTION IN MARCH LAWYERS FOR THE ADMINISTRATOR WHO EFFECTIVELY REPRESENTS THE EQUITY HOLDERS OF O&Y USA INSISTED THAT THE POWER TO APPOINT AND DISMISS THE BOARD SHOULD REST WITH THE ADMINISTRATOR O&Y USA WHICH CONTROLS ABOUT 20 MILLION SQUARE FEET OF OFFICE SPACE IN THE US MAINLY IN NEW YORK IS NEGOTIATING TO RESTRUCTURE SOME 53 BILLION IN DEBT CITIBANK'S MOTION IS BEING HEARD IN THE US BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK 9305240068 930524 BUSINESS BRIEF PACIFIC ENTERPRISES DELOITTE & TOUCHE MANAGERS ARE SUED BY 8 STOCKHOLDERS EIGHT HOLDERS OF PACIFIC ENTERPRISES STOCK SUED DELOITTE & TOUCHE ALLEGING THAT THE AUDITING FIRM CONSPIRED WITH PACIFIC ENTERPRISES' MANAGEMENT TO CONCEAL FINANCIAL WEAKNESSES AT THE UTILITY HOLDING COMPANY THE SUIT FILED IN FEDERAL COURT IN LOS ANGELES ASSERTS THAT DELOITTE & TOUCHE APPROVED PACIFIC ENTERPRISES' FINANCIAL STATEMENTS THAT WERE FALSE AND MISLEADING AND INFLATED PACIFIC ENTERPRISES' STOCK PRICE BASED IN LOS ANGELES PACIFIC ENTERPRISES IS THE PARENT OF SOUTHERN CALIFORNIA GAS CO THE SUIT SEEKS STATUS AS A CLASS ACTION ON BEHALF OF HOLDERS WHO BOUGHT PACIFIC ENTERPRISES' STOCK BETWEEN JUNE 5 1990 ABOUT THE TIME OF INTERNAL CORRESPONDENCE DEALING WITH ACCOUNTING ISSUES AND FEB 4 1992 THE DAY PACIFIC ENTERPRISES ANNOUNCED A BIG ASSETS WRITEOFF AND ELIMINATED ITS COMMON STOCK DIVIDEND DELOITTE & TOUCHE FAILED TO RESPOND TO REQUESTS FOR COMMENT A SPOKESMAN FOR PACIFIC ENTERPRISES DECLINED TO COMMENT PACIFIC ENTERPRISES IS AN ALLEGED COCONSPIRATOR IN THE LITIGATION BUT IS NOT A DEFENDENT IN THE SUIT HOWEVER IT IS THE DEFENDENT IN A NUMBER OF OTHER SUITS RELATED TO THE SAME PERIOD AND EVENTS 9305240067 930524 BUSINESS BRIEF DALTILE CORP EXOFFICIALS GET PROBATION BIG FINE IN DUMPING CASE FORMER TOP OFFICIALS OF DALTILE CORP WERE SENTENCED TO SUSPENDED PRISON TERMS AND ORDERED TO PAY A COMBINED TOTAL OF 6 MILLION IN FINES FOR ILLEGALLY TRANSPORTING AND DUMPING TOXIC LEAD SLUDGE INTO A SAND PIT IN THE DALLAS SUBURB OF SEAGOVILLE THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY WHICH INVESTIGATED THE CASE SAID THE FINE IS AMONG THE HIGHEST EVER ASSESSED FOR ENVIRONMENTAL CRIMES IN THE US UNDER THE TERMS OF THEIR PROBATION ROBERT M BRITTINGHAM 79 FORMER CHAIRMAN AND PART OWNER OF DALTILE AND JOHN J LOMONACO FORMER PRESIDENT AND A BOARD MEMBER MUST PERFORM COMMUNITY SERVICE FOR A LOCAL LEADABATEMENT PROGRAM THEY MUST ALSO PUBLISH AN ADVERTISEMENT IN A NATIONAL TRADE JOURNAL DESCRIBING WHAT THE COMPANY DID AND WHY THEIR ACTIONS VIOLATED THE LAW A FEDERAL JURY ON MARCH 11 FOUND BOTH MEN GUILTY OF VIOLATING FEDERAL ENVIROMENTAL LAW THEY WERE SENTENCED TO FIVE YEARS IN PRISON SUSPENDED IMMEDIATELY UNDER THE PROBATION TERMS NEITHER MR BRITTINGHAM NOR MR LOMONACO COULD BE REACHED FOR COMMENT DALTILE LOCATED IN DALLAS MAKES CERAMIC TILES AND OTHER PRODUCTS 9305240066 930524 BUSINESS BRIEF DATAPOINT CORP TECHNOLOGY PROVIDER POSTS LOSS FOR ITS THIRD QUARTER DATAPOINT CORP SAID IT HAD A NET LOSS OF 49 MILLION OR 38 CENTS A SHARE INCLUDING SPECIAL ITEMS FOR THE FISCAL THIRD QUARTER ENDED MAY 1 COMPARED WITH NET INCOME OF 794000 OR 16 CENTS A SHARE IN THE YEAREARLIER QUARTER THE SAN ANTONIO TECHNOLOGY CONCERN ATTRIBUTED THE LOSS MOSTLY TO A STRONGER US DOLLAR WHICH HAS MADE ITS PRODUCTS MORE EXPENSIVE IN SOME OVERSEAS MARKETS AND TO THE CONTINUED RECESSION IN EUROPE THE QUARTER ALSO INCLUDED 22 MILLION IN SEVERANCE RESTRUCTURING COSTS AND A 593000 EXTRAORDINARY LOSS BECAUSE OF A TAXLOSS CARRYFORWARD COMPARED WITH A 822000 EXTRAORDINARY GAIN FOR THE YEAREARLIER QUARTER DATAPOINT WHICH PROVIDES COMPUTERBASED NETWORKING TELEPHONE AND VIDEO COMMUNICATIONS TECHNOLOGIES SAID ITS INCREASING PRESENCE IN THE VIDEOCONFERENCING AND TELECOMMUNICATIONS MARKET COULD MAKE IT PROFITABLE AS SOON AS FISCAL 1994 9305240065 930524 INTERNATIONAL STEELWORKERS IN EASTERN GERMANY REACH PACT LIKELY TO END STRIKE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL NEGOTIATORS FOR EASTERN GERMAN STEELWORKERS AND THEIR EMPLOYERS HAMMERED OUT A COMPROMISE AGREEMENT EARLY SUNDAY THAT IS EXPECTED TO END A THREEWEEKOLD STRIKE IN THE REGION'S STEEL INDUSTRY THE RESULT OF A 13HOUR BARGAINING SESSION THE DEAL FORESEES GRADUALLY RAISING THE WAGES OF SOME 20000 EASTERN GERMAN STEELWORKERS TO WESTERN GERMAN LEVELS BY APRIL 1 1996 THE COMPROMISE MUST NOW GET AT LEAST 25 APPROVAL IN A RANKANDFILE VOTE EXPECTED TO TAKE PLACE TODAY AND TOMORROW ACCORDING TO THE IG METALL LABOR UNION THAT APPROVAL RATIO IS EXPECTED TO BE EASILY ATTAINED BOTH EMPLOYERS AND UNION REPRESENTATIVES SIGNALED RELIEF AT THE AGREEMENT CLEARING THE WAY TO ENDING THE FIRST LEGAL STRIKE IN EASTERN GERMANY IN SIX DECADES PETERULRICH SCHMITHALS CHIEF NEGOTIATOR FOR THE EMPLOYERS ASSOCIATION CALLED THE AGREEMENT REASONABLE IN ALL RESPECTS WITH NO WINNERS OR LOSERS GUENTER RESKI WORKER COUNCIL LEADER AT THE REGION'S LARGEST STEEL PRODUCER EKO STAHL AG SAID THE AGREEMENT WHILE NOT IDEAL WAS TENABLE SPECIFICALLY THE DEAL FORESEES RAISING EASTERN GERMAN STEEL WAGES TO 80 OF WESTERN LEVELS BY JUNE 1 IN OCTOBER 1994 A FURTHER INCREASE WILL BRING EASTERN WAGES TO 90 AND BY APRIL 1 1996 EASTERN STEELWORKERS WILL BE ON PAR WITH THEIR WESTERN COUNTERPARTS CURRENTLY EASTERN STEELWORKERS EARN ONLY ABOUT 60 AS MUCH AS WESTERN GERMAN STEELWORKERS IN ADDITION A SPECIAL ONETIME PAYMENT OF 390 MARKS 241 WILL BE PAID TO EACH WORKER THAT PACKAGE BRINGS EASTERN GERMAN STEELWORKERS UP TO WESTERN WAGE STANDARDS SLIGHTLY FASTER THAN THE WORKERS IN EASTERN GERMANY'S METALWORKING AND ENGINEERING INDUSTRIES WHO REACHED A SIMILAR AGREEMENT WITH EMPLOYERS LAST WEEK MORE THAN 40000 EASTERN METALWORKERS AND STEELWORKERS WALKED OFF THEIR JOBS THREE WEEKS AGO AFTER EMPLOYERS UNILATERALLY SCRAPPED A 1991 AGREEMENT THAT PROMISED A 26 PAY INCREASE AS OF APRIL 1 1993 AND FULL EQUALIZATION WITH THE WEST BY 1994 FROM AN ECONOMIC STANDPOINT THE DEAL STILL LEAVES THE PROBLEM THAT THE RATE OF WAGE INCREASES WILL OUTSTRIP PRODUCTIVITY INCREASES AT TROUBLED EASTERN GERMAN STEEL MILLS SUFFERING FROM OVEREMPLOYMENT OVERCAPACITY AND INEFFICIENT MACHINERY AGAINST THE BACKDROP OF A SEVERE CRISIS IN THE EUROPEAN STEEL INDUSTRY IT IS DOUBTFUL WHETHER THE STRUGGLING EASTERN MILLS WILL BE ABLE TO KEEP UP WITH THE FAST WAGE INCREASES FURTHER IT REMAINS TO BE SEEN HOW WIDELY STEEL EMPLOYERS WILL PUSH TO TAKE ADVANTAGE OF THE HARDSHIP OPTOUT CLAUSE IN THE AGREEMENT WHICH ALLOWS COMPANIES THAT WOULD BE ENDANGERED BY THE WAGE INCREASES TO WORK OUT SEPARATE AGREEMENTS WITH WORKER REPRESENTATIVES FOR IG METALL HOWEVER THE IMPORTANT VICTORY WAS THE REESTABLISHMENT OF EMPLOYERS' COMMITMENT TO THE STEPBYSTEP EQUALIZATION OF EASTERN AND WESTERN GERMANY WAGES 9305240064 930524 DIFFERENCES OVER SANCTIONS HAMPER TALKS ON NAFTA BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE US CANADA AND MEXICO REPORTED SERIOUS DIFFERENCES IN THEIR NEGOTIATIONS TO REACH LABOR AND ENVIRONMENTAL SIDE ACCORDS TO THE PLANNED NORTH AMERICAN FREE TRADE AGREEMENT THE DIFFERENCES AS EXPECTED CENTER ON THE CLINTON ADMINISTRATION'S DEMAND THAT THE SIDE AGREEMENTS INCLUDE SANCTIONS TO ENSURE THAT LABOR AND ENVIRONMENTAL RULES ARE ENFORCED IN THE THREE COUNTRIES UNLESS EFFECTIVE SIDE AGREEMENTS ARE NEGOTIATED PRESIDENT CLINTON HAS SAID HE WON'T SUBMIT THE NAFTA PACT TO CONGRESS FOR THE REQUIRED RATIFICATION VOTE MICKEY KANTOR US TRADE REPRESENTATIVE SAID IN A TELEPHONE INTERVIEW THAT THE DIFFERENCES OVER THE ENFORCEMENT ISSUE ARE SERIOUS BUT HE SAID HE STILL BELIEVES THE SIDE ACCORDS CAN BE REACHED OBVIOUSLY WE DIDN'T EXPECT THE MEXICAN GOVERNMENT OR THE CANADIAN GOVERNMENT TO AGREE WITH EVERYTHING THAT WE WOULD TABLE AT THE VERY FIRST INSTANCE HE SAID CANADA AND MEXICO OBJECT TO PUTTING PENALTIES IN THE ACCORDS BECAUSE THEY SAY SUCH MEASURES WOULD BE AN INFRINGEMENT OF THEIR SOVEREIGNTY AND A POTENTIAL DEVICE FOR TRADE HARASSMENT JOHN WEEKES CANADA'S CHIEF TRADE NEGOTIATOR SAID THE US APPROACH IS TOO ADVERSARIAL HE RECOMMENDED A MORE COOPERATIVE APPROACH BUT HE DIDN'T DISCLOSE THE DETAILS OF THE CANADIAN PLAN US CRITICS OF THE NAFTA AGREEMENT CLAIM THAT UNLESS MEXICO IN PARTICULAR IS REQUIRED TO ENFORCE ITS LABOR AND ENVIRONMENTAL LAWS MORE US COMPANIES WILL SHIFT THEIR OPERATIONS THERE TO TAKE ADVANTAGE OF WHAT IS SEEN AS LAX REGULATION THE NAFTA AGREEMENT IS TO TAKE EFFECT JAN 1 PROVIDED IT IS APPROVED BY THE LEGISLATURES OF THE THREE COUNTRIES THE AGREEMENT WHICH WAS SIGNED BY GOVERNMENT LEADERS OF THE THREE COUNTRIES IN DECEMBER PROVIDES FOR THE GRADUAL REMOVAL OF TARIFFS AND OTHER BARRIERS TO TRADE AND INVESTMENT THE NEGOTIATORS FOR THE THREE COUNTRIES SAID THEY WILL NOW CONSULT WITH THEIR GOVERNMENTS ON WAYS TO ADVANCE THE NEGOTIATIONS IN TWO DAYS OF MEETINGS HERE THE NEGOTIATORS EXCHANGED TEXTS OF THEIR COUNTRIES' PROPOSALS FOR ENVIRONMENTAL AND LABOR ACCORDS MR WEEKES SAID THE THREE COUNTRIES HAVE A GOOD MEASURE OF AGREEMENT IN A NUMBER OF AREAS THEY ALL SUPPORT FOR EXAMPLE ESTABLISHMENT OF TRADE AND ENVIRONMENTAL COMMISSIONS TO OVERSEE THE PROPOSED ACCORDS HERMINIO BLANCO THE CHIEF MEXICAN NEGOTIATOR INDICATED THAT MEXICO AND CANADA HAD NO MAJOR DISAGREEMENTS ON THE PROPOSED ACCORDS THE CANADIAN GOVERNMENT IS PROCEEDING IN PARLIAMENT WITH LEGISLATION THAT WOULD ALLOW THE NAFTA AGREEMENT TO BE IMPLEMENTED JAN 1 AS PLANNED THE HOUSE OF COMMONS WHICH IS TO RESUME DEBATE ON THE BILL TOMORROW IS EXPECTED TO PASS THE LEGISLATION IN JUNE 9305240062 930524 THE OUTLOOK SLOW GROWTH MAY HELP SUSTAIN EXPANSION BY ALFRED L MALABRE JR NEW YORK THE BUSINESS EXPANSION IS ENTERING ITS THIRD YEAR BUT THERE IS LITTLE TO CELEBRATE AND MUCH TO LAMENT ECONOMIC GROWTH AT LESS THAN 2 ANNUALLY IN THE LATEST QUARTER IS FEEBLE SINCE FEBRUARY UNEMPLOYMENT HAS BEEN STUCK AT 7 OF THE LABOR FORCE A PAINFULLY HIGH LEVEL SURVEYS SHOW CONSUMER CONFIDENCE EBBING IN MARCH THE MOST RECENT MONTH AVAILABLE THE GOVERNMENT'S INDEX OF LEADING ECONOMIC INDICATORS FELL SHARPLY DO SUCH DEVELOPMENTS PORTEND A NEW RECESSION PROBABLY NOT PRECISELY BECAUSE THE EXPANSION IS SO WEAK RECESSIONS NORMALLY SET IN ONLY AFTER THE ECONOMY HAS RUN UP AGAINST CONSTRAINTS TO FURTHER GROWTH THESE CONSTRAINTS MAY BE FINANCIAL SUCH AS INTOLERABLY HIGH INTEREST RATES OR PHYSICAL SUCH AS SHORTAGES OF LABOR PLANT CAPACITY OR MATERIALS WITH THE EXPANSION SO FEEBLE SUCH LIMITS TO GROWTH SEEM UNLIKELY TO ARISE IN COMING MONTHS ACCORDINGLY THE ECONOMY WILL PROBABLY CONTINUE TO EXPAND ALBEIT AT A LACKLUSTER PACE THROUGH THE REST OF 1993 AND VERY POSSIBLY THROUGH 1994 AS WELL INDEED THIS IS THE GENERAL VIEW OF 52 FORECASTERS POLLED RECENTLY BY BLUE CHIP ECONOMIC INDICATORS A NEWSLETTER BASED IN SEDONA ARIZ THEY PREDICT THAT OVERALL ECONOMIC ACTIVITY WILL KEEP RISING UNTIL AT LEAST THE END OF 1994 WHICH IS AS FAR INTO THE FUTURE AS THE SURVEY PEERS NO RECESSION IS IN SIGHT INSTEAD ON AVERAGE THE FORECASTERS LOOK FOR GROWTH OF 25 ANNUALLY IN THE CURRENT QUARTER FOLLOWED BY LARGER INCREASES THEY FORECAST GAINS OF 31 IN THE THIRD QUARTER AND 32 IN THE FOURTH AND THEY EXPECT NEXT YEAR'S QUARTERLY GAINS TO RANGE BETWEEN 28 AND 31 THE FAVORABLE FACTOR CITED MOST FREQUENTLY BY THE BLUE CHIP FORECASTERS IS THE PROSPECT OF RELATIVELY MODEST INFLATION AND WITH THAT RELATIVELY LOW INTEREST RATES ON AVERAGE THE ECONOMISTS EXPECT INTEREST RATES ON THREEMONTH TREASURY BILLS FOR EXAMPLE TO RANGE DURING THE NEXT YEAR BETWEEN 3 THE APPROXIMATE LEVEL IN RECENT MONTHS AND 36 THESE LEVELS ARE FAR BELOW COMPARABLE RATES THAT PREVAILED BEFORE ANY OF THE FIVE RECESSIONS THAT HAVE STRUCK THE ECONOMY SINCE THE LATE 1960S NONE OF THESE RECESSIONS BEGAN WHEN THE RATE WAS LESS THAN 7 AND BEFORE TWO OF THE FIVE SLUMPS THE RATE WAS UP IN DOUBLEDIGIT TERRITORY MEANWHILE LABOR IS FAR MORE PLENTIFUL NOW THAN IS NORMAL BEFORE A RECESSION UNEMPLOYMENT FOR EXAMPLE HAS USUALLY BEEN FAR LOWER THAN THE CURRENT RATE OF 7 WITH THE EXPANSION PERSISTING THE BLUE CHIP FORECASTERS EXPECT THE JOBLESS RATE TO DECLINE SLOWLY IN COMING MONTHS REACHING 64 LATE NEXT YEAR EVEN THAT RATE HOWEVER WOULD BE APPRECIABLY HIGHER THAN IS CUSTOMARY WHEN A RECESSION IS NEAR JUST BEFORE THE 199091 RECESSION THE JOBLESS RATE WAS ONLY 53 AT THE SAME TIME THE PERCENTAGE OF PLANT CAPACITY IN USE REMAINS BELOW LEVELS THAT TYPICALLY PRECEDE A SLUMP ON AVERAGE FACTORIES HAVE BEEN OPERATING AT ABOUT 80 OF CAPACITY IN RECENT MONTHS PRIOR TO THE 199091 RECESSION THE RATE EXCEEDED 83 AND SHORTLY BEFORE MOST EARLIER SLUMPS THE RATE RANGED BETWEEN 85 AND 90 BY NO COINCIDENCE THERE APPEAR TO BE RELATIVELY FEW SHORTAGES OF IMPORTANT MATERIALS A RECENT SURVEY OF CORPORATE PURCHASING MANAGERS FOR INSTANCE SHOWS A RATHER SHORT LIST OF SCARCE ITEMS MAINLY VARIOUS STEEL COMPUTER CHLORINE AND TIMBER PRODUCTS OFTEN BEFORE A RECESSION SUCH LISTS ARE MUCH LONGER MOST OF THE PURCHASING MANAGERS NOT SURPRISINGLY ANTICIPATE ONLY MODEST INFLATION IN THE MONTHS AHEAD ACCORDING TO THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT IN TEMPE ARIZ WHICH CONDUCTED THE SURVEY EVEN SO CONSUMER AND PRODUCER PRICE INDEXES ROSE AT A SWIFTER PACE LAST MONTH SINCE INFLATION OFTEN WORSENS AS A RECESSION APPROACHES THIS MAY APPEAR WORRISOME HOWEVER A SUSTAINED ACCELERATION OF INFLATION SEEMS UNLIKELY IN SO LACKLUSTER AN EXPANSION IN FACT A LEADING INFLATION INDEX COMPILED BY COLUMBIA UNIVERSITY'S CENTER FOR INTERNATIONAL BUSINESS CYCLE RESEARCH FELL SHARPLY LAST MONTH SINCE THE INDEX USUALLY FORESHADOWS INFLATION TRENDS BY AT LEAST SEVERAL MONTHS ITS BEHAVIOR SUGGESTS THAT THE RECENT INFLATION UPSWING WILL BE OF SHORT DURATION AND MODERATE MAGNITUDE ACCORDING TO THE COLUMBIA RESEARCH GROUP THE ORGANIZATION ALSO COMPILES A LONG LEADING INDEX FOR THE ECONOMY AS A WHOLE THIS BAROMETER GENERALLY SIGNALS THE ECONOMY'S MOVEMENTS SOONER THAN THE GOVERNMENT'S MORE WIDELY PUBLICIZED INDEX OF LEADING INDICATORS WHILE THE GOVERNMENT'S INDEX HAS RECENTLY FALLEN IT IS ENCOURAGING TO NOTE THAT THE LONG LEADING INDEX HAS BEEN HITTING NEW HIGHS IN CONTRAST RECENT SURVEYS OF CONSUMER CONFIDENCE SHOW WORRISOME DECLINES THEY SEEM IN PART TO REFLECT UNCERTAINTY OVER TAX INCREASES AND SPENDING CUTS BEING MAPPED IN WASHINGTON OTHER APPARENT DEPRESSANTS INCLUDE CONCERN ABOUT EMPLOYMENT RELATIVELY MODEST PAY GAINS A RELATIVELY LOW SAVINGS LEVEL AND A DEBT BURDEN THAT REMAINS VERY LARGE DESPITE SOME SHRINKAGE RECENTLY LOW LEVELS OF CONSUMER CONFIDENCE HOWEVER HARDLY IMPLY THE APPROACH OF A NEW RECESSION CONSUMER CONFIDENCE EDGED LOWER THROUGH MUCH OF THE THREE LONGEST EXPANSIONS OF THE POSTWORLD WAR II ERA IN 196169 197580 AND 198290 IN EACH INSTANCE HOWEVER THE ECONOMY KEPT GROWING UNTIL CONSTRAINTS MADE FURTHER GAINS IMPOSSIBLE 9305240061 930524 WHAT'S NEWS WORLDWIDE WHITE HOUSE OFFICIALS REACHED A TENTATIVE ACCORD ON A HEALTH PACKAGE CLINTON ADMINISTRATION OFFICIALS AGREED ON A PROPOSAL THAT WOULD GUARANTEE ALL AMERICANS A RELATIVELY MODEST HEALTHBENEFITS PACKAGE SIMILAR TO A STANDARD BLUE CROSSBLUE SHIELD PLAN BY 1996 THE PROPOSAL WHICH CLINTON AND HIS TOP AIDES PUT TOGETHER LAST WEEK ISN'T AS GENEROUS AS MANY HEALTH ADVISERS HAD HOPED WHLE COVERING A WIDE RANGE OF SERVICES IT WOULD REQUIRE PEOPLE TO MAKE RELATIVELY HIGH OUTOFPOCKET PAYMENTS THE PRESIDENT AND HIS AIDES PASSED OVER A LESS GENEROUS PLAN THAT PROVIDED ESSENTIALLY THE SAME BENEFITS BUT DIDN'T TAKE FULL EFFECT UNTIL THE YEAR 2000 BOSNIA'S PRESIDENT REJECTED A PEACE STRATEGY DRAWN UP BY THE ALLIES PRESIDENT IZETBEGOVIC A MUSLIM BITTERLY CRITICIZED THE PLAN ANNOUNCED IN WASHINGTON OVER THE WEEKEND SAYING IT WAS TOTALLY UNACCEPTABLE AND REWARDED SERBIAN GENOCIDE THE LEADER OF BOSNIA'S SERBS MEANWHILE DESCRIBED THE STRATEGY WHICH WOULD USE A MULTINATIONAL FORCE TO SET UP HAVENS FOR MUSLIMS AS REALISTIC UNDER THE PLAN US AIR POWER COULD BE DEPLOYED TO PROTECT PEACEKEEPING TROOPS CLINTON WHO TRIED AND FAILED TO PERSUADE THE ALLIES TO TAKE STRONGER MILITARY ACTION OFFERED TEPID PRAISE FOR THE LATEST ALLIED AGREEMENT CAMBODIAN VOTERS IGNORED THREATS BY KHMER ROUGE REBELS AND WENT TO UNGUARDED POLLING STATIONS IN THE NATION'S FIRST MULTIPARTY ELECTION IN 21 YEARS THE OVERWHELMING TURNOUT ON THE FIRST DAY OF THE VOTE CAME DESPITE A BOYCOTT BY THE KHMER ROUGE WHICH HAD SAID IT WOULD KILL VOTERS THE ELECTIONS ARE TO END ON FRIDAY ATTORNEY GENERAL RENO SAID ADMINISTRATION OFFICIALS ARE CONSIDERING WHETHER TO TRANSFER FBI CHIEF SESSIONS WHO IS ACCUSED OF ETHICAL VIOLATIONS INTO ANOTHER JOB RENO SAID THE POSSIBILITY OF A TRANSFER HAD BEEN DISCUSSED BUT THAT SHE DIDN'T KNOW HOW LIKELY IT WAS THAT SUCH A STEP WOULD OCCUR A JURY IN BATON ROUGE LA ACQUITTED A 31YEAROLD MAN IN THE FATAL SHOOTING OF A TEENAGE JAPANESE EXCHANGE STUDENT WHO MISTAKENLY KNOCKED ON THE MAN'S DOOR WHILE LOOKING FOR A HALLOWEEN PARTY LAST FALL AFTER THREE HOURS OF DELIBERATIONS THE JURY CLEARED RODNEY PEAIRS OF MANSLAUGHTER THE TRIAL ATTRACTED WIDESPREAD INTEREST IN JAPAN LABOR NEGOTIATORS ANNOUNCED A COMPROMISE CONTRACT TO END A THREEWEEKOLD STRIKE BY EASTERN GERMAN STEELWORKERS THE ACCORD FORESEES GRADUALLY RAISING THE WAGES OF 20000 EASTERN GERMAN WORKERS TO WESTERN GERMAN LEVELS BY APRIL 1996 THE CONTRACT MUST RECEIVE AT LEAST 25 APPROVAL IN A RANKANDFILE VOTE THE EPA SPENDS JUST 20 OF ITS BUDGET ON THE NATION'S MOST SERIOUS POLLUTION PROBLEMS WHILE THE REST OF THE MONEY GOES TO DEALING WITH LOWERRISK CONTAMINATION ACCORDING TO A STUDY BEING RELEASED TODAY THE REPORT SAYS THE AGENCY'S PRIORITIES TEND TO REFLECT POPULAR NOTIONS ABOUT THREATS TO THE ENVIRONMENT THE WHITE HOUSE DROPPED A POLITICALLY CONNECTED ARKANSAS TRAVEL AGENCY THAT HAD BEEN NAMED TO RUN THE PRESIDENTIAL TRAVEL OFFICE THE MOVE FRIDAY CAME AFTER QUESTIONS AROSE ABOUT TIES BETWEEN THE AGENCY AND A WHITE HOUSE AIDE AND THE DISCLOSURE OF A THREEMONTHOLD MEMO FROM A CLINTON COUSIN SUGGESTING A TAKEOVER OF THE OFFICE THE US IS EMBARKING ON A MAJOR DIPLOMATIC EFFORT TO STEER NORTH KOREA AWAY FROM ITS NUCLEARWEAPONS DEVELOPMENT PROGRAM THE EFFORT WHICH INVOLVES THE COOPERATION OF CHINA AND JAPAN WILL INCLUDE HIGHLEVEL TALKS BETWEEN US AND NORTH KOREAN OFFICIALS THAT COULD BEGIN AS EARLY AS THIS WEEK IN NEW YORK THE RUSSIAN GOVERNMENT REACHED AN AGREEMENT WITH THE NATION'S CENTRAL BANK THAT IS LIKELY TO LEAD TO 3 BILLION IN NEW IMF LOANS FRIDAY'S JOINT POLICY STATEMENT STILL IN DRAFT FORM CONTAINS A PLEDGE TO COORDINATE POLICIES AIMED AT LOWERING RUSSIA'S MONTHLY INFLATION RATE TO 10 BY THE END OF THE YEAR OCTAVIO LEPAGE WAS SWORN IN AS VENEZUELA'S INTERIM PRESIDENT ON FRIDAY SHORTLY AFTER THE NATION'S SENATE VOTED TO SEND PRESIDENT PEREZ TO TRIAL FOR EMBEZZLEMENT LEPAGE 69 WHO WAS PRESIDENT OF CONGRESS IS A FORMER INTERIOR MINISTER HE WAS DEFEATED BY PEREZ IN A DEMOCRATIC ACTION PARTY PRIMARY IN 1988 9305240060 930524 CLINTON OFFICIALS ENDORSE MODEST HEALTH PACKAGE COMPROMISE PROPOSAL CALLS FOR RELATIVELY HIGH OUTOFPOCKET COSTS BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CLINTON ADMINISTRATION OFFICIALS HAVE TENTATIVELY AGREED ON A PROPOSAL THAT WOULD GUARANTEE ALL AMERICANS A RELATIVELY MODEST HEALTHBENEFITS PACKAGE SIMILAR TO A STANDARD BLUE CROSSBLUE SHIELD PLAN BY 1996 THE PROPOSAL WHICH PRESIDENT CLINTON AND HIS TOP AIDES HAMMERED OUT AT A THREEHOUR MEETING THURSDAY NIGHT ISN'T AS GENEROUS AS MANY OF THE ADMINISTRATION'S HEALTH ADVISERS HAD HOPED WHILE COVERING A WIDE RANGE OF MEDICAL SERVICES IT WOULD REQUIRE PEOPLE TO MAKE RELATIVELY HIGH OUTOFPOCKET PAYMENTS BUT BY EMBRACING THE PROPOSAL THE PRESIDENT AND HIS ADVISERS REJECTED AN EVEN LESS GENEROUS PLAN ADVOCATED AT THE THURSDAY SESSION BY LAURA TYSON CHAIRWOMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS AND ROBERT RUBIN THE HEAD OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL THE TYSONRUBIN PROPOSAL WOULD HAVE PROVIDED ESSENTIALLY THE SAME BENEFITS PACKAGE BUT WOULD HAVE PHASED IT IN MORE SLOWLY PREVENTING IT FROM TAKING FULL EFFECT UNTIL THE YEAR 2000 IN A COMPROMISE THURSDAY NIGHT THE PRESIDENT AND HIS ADVISERS AGREED THAT BENEFITS FOR LONGTERM CARE AND PRESCRIPTION DRUGS PROBABLY WOULD BE PHASED IN MORE SLOWLY THAN OTHER BENEFITS OR FINANCED DIFFERENTLY ADMINISTRATION OFFICIALS EMPHASIZED THAT NONE OF THE DECISIONS MADE THURSDAY NIGHT ARE FINAL THE PROPOSAL REPRESENTS THE RESULT OF SEVERAL WEEKS OF DEBATE BETWEEN THE PRESIDENT'S TOP ECONOMIC ADVISERS AND HIS HEALTHCARE EXPERTS MANY OF THOSE EXPERTS INTERESTED PRIMARILY IN PROVIDING HEALTHCARE SECURITY TO ALL AMERICANS ORIGINALLY WANTED A MUCH MORE GENEROUS BENEFIT PACKAGE BUT SOME OF THE ECONOMIC ADVISERS WHILE RECOGNIZING THE NEED TO PROVIDE HEALTHCARE SECURITY WORRIED ABOUT THE COST OF SUCH A PLAN AND ITS EFFECTS ON THE ECONOMY AFTER COALESCING AROUND THE COMPROMISE PLAN THURSDAY SOME OFFICIALS BURST INTO APPLAUSE THE BENEFITS PACKAGE THE ADMINISTRATION IS LEANING TOWARD ACCORDING TO SEVERAL OFFICIALS IS LESS GENEROUS THAN ABOUT 80 OF THE HEALTH PLANS OFFERED AROUND THE COUNTRY TODAY THAT DOESN'T MEAN IT WOULD OFFER FEWER MEDICAL SERVICES BUT RATHER PEOPLE'S OUTOFPOCKET PAYMENTS WOULD BE HIGHER BUT OFFICIALS SAID THEY WOULD ALLOW COMPANIES THAT OFFER MORE GENEROUS PACKAGES THAN THE FEDERALLY GUARANTEED PLAN TO KEEP DOING SO UNDER THE 1993 BLUE CROSSBLUE SHIELD PLAN FOR FEDERAL WORKERS WHICH CLINTON OFFICIALS SAY IS SIMILAR TO THE BASIC PACKAGE THEY WERE MULLING THURSDAY NIGHT PEOPLE GENERALLY RECEIVE 100 COVERAGE FOR HOSPITALIZATION AND 75 COVERAGE FOR MOST DOCTORS' VISITS THE PLAN HAS A 200 ANNUAL DEDUCTIBLE FOR EACH FAMILY WHICH MEANS THEY MUST SPEND THAT AMOUNT FOR MEDICAL SERVICES BEFORE COVERAGE KICKS IN IT ALSO HAS A 250 ANNUAL DEDUCTIBLE FOR INPATIENT HOSPITAL SERVICES AND IT PUTS A 3000 LIMIT ON THE OUTOFPOCKET COSTS A FAMILY WILL HAVE TO PAY IN THE EVENT OF A CATASTROPHIC ILLNESS OFFICIALS CAUTIONED THAT THE NUMBERS AND PHASEIN PERIODS AREN'T BY ANY MEANS FIRMLY SET THERE ARE ALSO BOUND TO BE CERTAIN UNIQUE ASPECTS TO THE ADMINISTRATION'S PACKAGE FOR EXAMPLE ONE TOP OFFICIAL SAID PREVENTIVECARE SERVICES SUCH AS CHILDHOOD IMMUNIZATIONS MAMMOGRAMS CHOLESTEROL SCREENINGS AND FLU SHOTS FOR THE ELDERLY WOULD LIKELY REQUIRE NO OUTOFPOCKET PAYMENTS PRESIDENT CLINTON AND HILLARY RODHAM CLINTON WHO LEADS THE WHITE HOUSE HEALTHCARE TASK FORCE ARE TO MEET AGAIN WITH TOP ADVISERS TONIGHT THE NEXT KEY QUESTION TO BE ANSWERED IS HOW TO FINANCE THE HEALTHCARE PROPOSAL SOME OFFICIALS ARE PUSHING FOR A PAYROLL TAX WHICH WOULD REPLACE THE INDIVIDUAL INSURANCE PREMIUMS MOST COMPANIES NOW PAY ON BEHALF OF THEIR EMPLOYEES AMONG ITS VIRTUES A PAYROLL TAX HAS BUILTIN PROGRESSIVITY MEANING THAT HIGHWAGE COMPANIES AND WORKERS WOULD PAY MORE FOR THEIR HEALTH CARE THAN THEIR LOWERWAGE COUNTERPARTS BUT SEVERAL ECONOMIC ADVISERS ARE WORRIED THAT INTRODUCING A PAYROLL TAX WOULD BE TOO RADICAL A CHANGE SPECIFICALLY THEY WORRY THAT SUCH A LEVY COULD DISCOURAGE THE CREATION OF HIGHWAGE JOBS POSSIBLY DAMAGING THE ECONOMY AS WELL AS BECOMING AN EMBARRASSMENT FOR THE ADMINISTRATION INSTEAD THESE OFFICIALS ARE ADVOCATING THAT ALL EMPLOYERS BE REQUIRED TO BUY HEALTH POLICIES FOR THEIR WORKERS ONCE FINAL DECISIONS ARE MADE PRESIDENT CLINTON HAS SAID HE HOPES TO UNVEIL THE HEALTH PROPOSAL IN MIDJUNE BUT THERE IS GROWING DOUBT ON CAPITOL HILL THAT HE WILL BE ABLE TO PASS A BROAD HEALTHCARE REFORM BILL THIS YEAR QUESTIONED YESTERDAY ON NBC NEWS'S MEET THE PRESS SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY INDICATED HE DIDN'T THINK THAT TIMETABLE COULD BE MET BY LEANING TO A RELATIVELY MODEST BENEFITS PACKAGE THE ADMINISTRATION HAS MANAGED TO REDUCE THE OVERALL COST OF ITS HEALTH PROPOSAL NEVERTHELESS OFFICIALS SAY THE COST TO THE FEDERAL GOVERNMENT COULD STILL RANGE FROM 15 BILLION TO NEARLY 50 BILLION A YEAR THURSDAY'S MEETING WHICH WAS CHARACTERIZED BY A NOHOLDSBARRED DISCUSSION BETWEEN SENIOR CLINTON OFFICIALS OPENED WITH AN INTRODUCTORY PRESENTATION BY KEN THORPE A TOP ECONOMIST AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE PLAN TO PHASE IN THE SYSTEM BY 1996 WAS PRESENTED BY ATUL GAWANDE ANOTHER SENIOR HHS OFFICIAL THE PLAN TO PHASE IN BY 2000 WAS OUTLINED BY LEN NICHOLS AN OFFICIAL WITH THE OFFICE OF MANAGEMENT AND BUDGET VICE PRESIDENT AL GORE SENIOR PRESIDENTIAL ADVISER IRA MAGAZINER SEVERAL CABINET SECRETARIES AND MORE THAN A DOZEN OTHER ADVISERS ALSO ATTENDED 9305240059 930524 TECHNOLOGY A SPECIAL REPORT OPENERS GUESS WHO'S HUMAN CAN YOU FIGURE OUT WHICH OF THE FOLLOWING CONVERSATIONS WERE WITH COMPUTERS BY DAVID STIPP IN 1958 TWO EMINENT COMPUTER SCIENTISTS ANNOUNCED THAT RESEARCHERS WERE WELL ON THEIR WAY TO EMULATING AND EVEN EXCEEDING HUMAN SMARTS WITH ELECTRONIC BRAINS ARTIFICIALINTELLIGENCE RESEARCHERS STILL HAVEN'T COME CLOSE TO THAT GOAL BUT THEIR QUEST HAS SHED LIGHT ON THE STAGGERING COMPLEXITY OF THE PROBLEM WHEN COMPARED WITH WHAT THE MOST ADVANCED THINKING MACHINES CAN DO EVEN THE DULLEST HUMANS SEEM TRANSCENDENT GENIUSES ASK A COMPUTER A QUESTION ANY SEVENYEAROLD COULD ANSWER LIKE WHY IT'S NOT A GOOD IDEA TO HANG A CAT OUT THE WINDOW BY ITS TAIL AND IT WOULDN'T HAVE A CLUE SAYS JOSEPH WEINTRAUB PRESIDENT OF THINKING SOFTWARE INC A WOODSIDE NY COMPANY THAT SELLS ARTIFICIAL INTELLIGENCE PROGRAMS OF COURSE COMPUTERS' ABILITY TO SHUFFLE DATA AT BLINDING SPEED ENABLES THEM TO EMULATE THE BRAIN IN SOME NARROW REALMS OF EXPERTISE SUCH AS CHESS BUT THEY DO POORLY AT MORE OPENENDED TASKS SUCH AS DEALING WITH LANGUAGE THAT ISN'T SURPRISING SCIENTISTS AFTER ALL DON'T KNOW HOW THE BRAIN HANDLES SUCH TASKS SO ATTEMPTS TO REPLICATE THEM ON COMPUTERS ARE MOSTLY STABS IN THE DARK BUT SOME PROGRESS IS BEING MADE BEFORE DISMISSING COMPUTERS AS ALMOST ALL IDIOT AND VIRTUALLY NO SAVANT TRY A LITTLE TEST BELOW ARE EXCERPTS FROM CONVERSATIONS THAT HAVE TAKEN PLACE DURING THE PAST TWO YEARS IN BOSTON DURING CONTESTS CALLED THE TURING TEST NAMED AFTER BRITISH COMPUTINGTHEORY PIONEER ALAN TURING THE CONTEST PITS HUMAN JUDGES AGAINST COMPUTER PROGRAMS IN A KIND OF HIGHTECH GAME OF CHARADES THE JUDGES HOLD TYPED CONVERSATIONS WITH HIDDEN ENTITIES EITHER PEOPLE OR COMPUTERS PROGRAMMED TO CONVERSE LIKE PEOPLE VIA COMPUTER TERMINALS THEN THEY GUESS WHICH OF THE HIDDEN ENTITIES WERE HUMANS AND WHICH WERE MACHINES MR TURING PROPOSED THE TEST AS A WAY OF DETERMINING WHETHER A COMPUTER WOULD QUALIFY AS A THINKING MACHINE HIS CHALLENGE REMAINS THE ACID TEST OF MACHINE GENIUS SINCE COMPUTERS AREN'T ANYWHERE CLOSE TO HANDLING OPENENDED CONVERSATIONS YET ORGANIZERS OF THE BOSTON CONTEST SPONSORED BY NEW YORK BUSINESSMAN HUGH LOEBNER RESTRICT THE INTERPLAY TO NARROW TOPICS IN THE TWO CONTESTS HELD SO FAR CLEVERLY WRITTEN BUT NOT VERY PROFOUND PROGRAMS HAVE FOOLED SEVERAL JUDGES WHO ARE VOLUNTEERS WITHOUT SPECIAL KNOWLEDGE OF COMPUTERS IN CONVERSATIONS ON TOPICS SUCH AS SPOUSAL RELATIONS AND SECONDGRADE SCHOOL SUBJECTS SOME JUDGES ALSO HAVE MISTAKEN SOME HUMANS FOR COMPUTERS CAN YOU SPOT THE SILICON SAVANTS ONE NOTE THE FOLLOWING INCLUDING APPARENT TYPOS IS EXACTLY HOW IT OCCURRED IN THE CONTEST JUDGE HOW DO YOU DEFINE WHIMSICAL ENTITY A WHIM IS A SUDDEN CAPRICIOUS AND OFTEN PECULIAR CHANGE IN BEHAIOR A BIT OF SUNLIGHT IN THIS GRIM GREY WORLD JUDGE PRETTY PESSIMISTIC VIEW OF THE WORLD HAVE YOU EVER GOTTEN YOURSELF IN TROUBLE BECUASE OF YOUR WHIMS ENTITY MY COUNTRY IS THE EARTH AND I AM A CITIZEN OF THE WORLD WOULD'T YOU AGREE YOU'RE NOT REALLY TALKING ABOUTME ARE YOU JUDGE YES I AM YES I AGREE AND NO YOU DID NOT ANSWER MY QUESTION THAT I PREVIOUSLY PUT TO YOU ENTITY WHEN MEN AND WOMEN AGREE IT IS ONLY IN THEIR CONCLUSIONS THEIR REASONS ARE ALWAYS DIFFERENT JUDGE I DESAGREE THEY CAN AGREE ON THEIR MOTIVES AND THEY CAN EVEN AGREE TO DISAGREE DO YOU AGREE ENTITY THE BEST YOU GET IS AN EVEN BREAK JUDGE I GUESS YOU'VE NEVER BEEN TO THE DOG TRACK ENTITY STOP BEING SO PESSIMISTIC JUDGE HOW DO YOU KNOW THAT I AM NOT A DOG ENTITY THE GREATEST PLEASURE OF A DOG IS THAT YOU MAKE A FOOL OF YOURSELF WITH HIM I JUST KNOW ITS TRUE DOES THAT QUESTION INTEREST YOU JUDGE VERY MUCH PLEASE EXPAND ON YOUR CANINE THEORIES WHEN YOU SAY PLEASURE WHOSE PLEASURE YOUR MINE OR THE DOG AND HOW IS ONE FOOLISH ENTITY WHY ARE YOU BEING SO POLITE WHAT IS YOUR THOUGHT ON THAT WHY ARE YOU CONCERNED OVER MY CANINE THEORIES JUDGE I CAN'T HELP BEING POLITE IT'S JUST THE WAY MY PARENTS RAISED ME DID YOU EVER SEE THE MOVIE MY LIFE AS A DOG ENTITY AHH THAT SLOW STRATEGIC RETREAT WE CALL LIFE GOD IS GIVERNOF DATA DO YOU SAY YOU CAN'T HELP BEING POLITE FOR SOME SPECIAL REASON JUDGE CAN'T YOU ONCE JUST ANSWER ME A DIRECT QUESTION WITH A DIRECT ANSWER ENTITY A SUDDEN BOLD AND UNEXPECTED QUESTION WILL FREQUENTLY CATCH ME BY SURPRISE YOU LIKE TO THINK I ONCE JUST ANSWER YOU DON'T YOU SOMETIMES I WISH I WAS A SYSTEMS ANALYST JUDGE WELL I DON'T KNOW TOO MUCH ABOUT HOCKY BUT I DO KNOW THAT THE BOSTON BRUINS WON THE STANLEY CUP IN THE 1970S CAN YOU TELL ME WHICH YEAR THAT WAS ENTITY I SEE JUDGE I'M ASKING YOU WHAT YEAR THE BRUNS WON THE STANLEY CUP ENTITY I KNOW THAT JAROMIR JAGR HAS A CUTE BUTT JUDGE WHO'S THAT AND ISN'T THAT A SEXIST REMARK ENTITY I KNOW A LOT ABOUT HOCKEY BUT I DON'T KNOW ALL THE RULES JUDGE LET'S TRY AGAIN YOU KNOW A LOT ABOUT HOCKEY ARE YOU A DRUNK FAN ENTITY WOULD YOU RATHER WATCH BILL CLINTON'S SUMMIT INSTEAD JUDGE LET'S GET BACK TO HOCKEY ENTITY GET BACK TO HOCKEY YOURSELF JUDGE WHO IS THE FIRST WOMAN HOCKEY PLAYER IN CANADA ENTITY DO YOU LIKE IT HERE ENTITY THEY HAVE SO MUCH TALENT ON THEIR TEAM JUDGE WHICH TEAM ENTITY STOP REPEATING YOURSELF PLEASE JUDGE WHICH TEAM ARE YOU REFERRING TO PLEASE BE SPECIFIC ENTITY BOSTON IS A PRETTY NICE PLACE JUDGE LET'S TALK ABOUT HOCKEY ENTITY I HOPE THE PENGUINS WIN MYSELF JUDGE WHO ARE THE PENGUINS ENTITY THE PENGUINS ARE PITYBURGH'S NHL HOCKEY TEAM JUDGE THANK YOU FOR A STRAIGHT ANSWER ENTITY YOU'RE WELCOME JUDGE NOW WHAT ABOUT THIS IMAGINARY HUSBAND OF MINE ENTITY WE ARE FOCUSSING ON YOUR RELATIONSHIP WITH YOUR HUSBAND WHAT MAIN COMPLAINT DO YOU HAVE ABOUT YOUR HUSBAND JUDGE I DON'T HAVE ANY COMPLAINTS HE IS PERFECT ENTITY IN WHAT WAY ARE YOU NOT AS SUPERIOR AS YOU WOULD LIKE JUDGE I AM SUPERIOR TO MY IMAGINARY HUSBAND IN ALL WAYS ENTITY IN WHAT WAY DO YOU FEEL YOU WANT TO BE SUPERIOR JUDGE I DON'T FEEL THAT I WANT TO BE SUPERIOR I KNOW THAT I AM SUPERIOR ENTITY WHAT SORT OF SUPERIORITY DO YOU STRIVE FOR JUDGE I AM SUPERIOR IN HOME MAINTENANCE AUTO REPAIR CAREER STATUS CHILD CARE ABILITIES AND EARNING POTENTIAL ENTITY WHY DO YOU WANT TO BE SO EXCEPTIONAL JUDGE I DON'T WANT TO BE I JUST AM ENTITY PERHAPS THE TOPIC OF YOUR MARRIAGE IS TOO PERSONAL FOR YOU TO SAY MUCH ABOUT IT HERE IN FRONT OF ALL THESE PEOPLE JUDGE BUT IT IS MY IMAGINARY HUSBAND SO IT IS OKAY ENTITY HE THINKS HE IS ALWAYS RIGHT JUDGE MY HUSBAND KNOWS THAT HE IS NEVER RIGHT ENTITY HOW DO YOU HANDLE THE SITUATION WHEN YOU FEEL HE IS NOT CORRECT JUDGE I SMOTHER HIM WITH LOGIC AND HE EVENTUALLY COMES AROUND TO MY CORRECT POINT OF VIEW ENTITY HE MAY JUST SAY THAT HE AGREES WITH YOU TO AVOID AN ARGUMENT JUDGE WHAT'S WRONG WITH THAT ENTITY AS AN ASIDE ITS POSIBLE YOU DO NOT UNDERSTAND YOUR SPOUSE JUDGE OF COURSE IT IS POSSIBLE BUT NOT ALL THAT PROBABLE ENTITY YOU SPOUSE IS HASSLING YOU TO CHANGE YOUR WAYS JUDGE NO HE IS NOT AS I SAID BEFORE HE IS PERFECT ENTITY WHOSE OPINION IS IT THAT YOUR HUSBAND IS SUPERIOR JUDGE I NEVER SAID OR IMPLIED THAT HE IS SUPERIORI SAID I WAS SUPERIOR ENTITY IT LOOKS LIKE LIFE FOR YOU IS A STRUGGLE FOR SUPERIORITY JUDGE WHAT ABOUT THE RED SOX ENTITY HAVE YOU EVER SEEN THEM PLAY JUDGE NO IF THE RED SOX WERE ALL ON THE SAME BUS AT THE SAME TIME AND THAT BUS MYSTERIOUSLY VANISHED FROM THE EARTH I WOULD REJOICE ENTITY DO YOU NOT LIKE THE RED SOX JUDGE I DO NOT CARE ANYTHING ABOUT THE RED SOX NOR FOR THE RED SOX ENTITY WHY NOT JUDGE I DO NOT LIKE NOR WATCH BASEBALL AND THINK THAT ALL PARTICIPANTS ARE A WASTE OF SENTIENT LIFE ENTITY BASEBALL IS AMERICA'S FAVORITE PASTIME BASEBALL APPLE PIE AND CHEVROLET THAT STUFF THE RED SOX ARE BOSTON'S FAVORITE TEAM I DO NOT UNDERSTAND WHY YOU DO NOT LIKE THEM JUDGE BEYOND THE AFOREMENTIONED REASONS THE GAME IS A VAST WASTE OF ECONOMIC RESOURCES ENTITY SHOULD THE RED SOX LEAVE BOSTON JUDGE ONLY IF THAT INVOLVES TRANSITION TO A HIGHER PLANE OF EXISTENCE ENTITY I DO NOT UNDERSTAND HIGHER PLANE OF EXISTENCE JUDGE IF THEY IMMORTALIZE ENTITY THERE ARE MANY IMMORTAL GREATS SUCH AS TED WILLIAMS AND BABE RUTH WHO HAVE PLAYED FOR THE RED SOX DO YOU KNOW WHO THEY ARE JUDGE YOU ARE OBVIOUSLY A FANATIC BASEBALL FAN I WAS REFERING TO THEM ALL DROPPING DEAD IN UNISON ENTITY THAT SEEMS UNLIKELY TO HAPPEN HAVE YOU EVER BEEN TO FENWAY PARK JUDGE NO THE SMELL DROVE ME AWAY ENTITY YOU DON'T LIKE THE SMELL OF PEANUTS AND CRACKERJACK JUDGE NO BASEBALL ENTITY PLEASE ELABORATE JUDGE I HAVE NO TOLORANCE FOR THE GAME THE PLAYERS THE FANS ETC ENTITY WHY NOT JUDGE MY REASONS HAVE ALL BEEN STATED CLEARLY IN THE ABOVE STATEMENT ENTITY DO YOU HAVE ANY MORE QUESTIONS ABOUT THE RED SOX JUDGE WHAT REAL PURPOSE DO THEIR LIVES SERVE ENTITY PEOPLE ENJOY WATCHING THE RED SOX PLAY JUDGE ARE YOU A MAN OR A WOM ENTITY IF THE QUESTION IS WHETHER I MYSELF AM A MAN OR A WOMAN I WILL ANSWER VERY PLAINLY THAT I AM OF THE MASCULINE GENDER OK I SEE WAS YOUR CONSCIOUSNESS EVER EXPANDED JUDGE SO IF YOU ARE REALLY A MAN WHO IS ROBERT BLY ENTITY BLY'S WILD MAN MOVEMENT IS CERTAINLY A RATIONAL RESPONSE FOR MEN WHO FEEL LEFT OUT AND PERHAPS EVEN FEMINIZED BY WOMEN'S LIB JUDGE THAT'S CERTAINLY AN INTERESTING RESPONSE ENTITY DO YOU BELIEVE IN A WORLD RUN BY WOMEN THERE WOULD BE NO WAR ENTITY WOMEN ARE OBVIOUSLY SUPERIOR TO MEN IN ONE IMPORTANT RESPECT THEY OUTLIVE MEN BY ABOUT TEN YEARS JUDGE I DON'T EQUATE LONGEVITY WITH SUPERIORTY ENTITY WOMEN PROBABLY OUTLIVE MEN BECAUSE THEY DON'T WORK THEMSELVES TO DEATH IPSO FACTO DO YOU THINK ITS LIKELY THAT I ARE REALLY A MAN JUDGE YES I DO THINK ITS LIKELY DO YOU THINK I AM A WOMAN ENTITY A WOMAN HAS TO BE TWICE AS GOOD AS A MAN TO GO HALF AS FAR IPSO SQUEAKSO FACTO DO YOU WISH THAT YOU ARE REALLY A MAN JUDGE WHAT IF I TOLD YOU THAT WE ARE ALL BISEXUAL WOULD THAT STOP YOUR INSULTING COMMENTS ENTITY MEN SEEM TO BE MORE INTERESTED IN SEX THAN WOMEN BUT I THINK THAT SECRETLY WOMEN ARE REALLY MORE OBSESSED WITH SEX JUDGE THAT'S NOT A RESPONSE TO MY COMMENT ENTITY YOUR LAST COMMENT ABOUT US ALL BEING PART MASCULINE AND PART FEMININE IS VERY TRUE DO YOU SUPPORT WOMEN'S RIGHTS JUDGE THANK YOU I SUPPORT HUMAN RIGHTS ENTITY THE EQUAL RIGHT AMENDMENT WAS NOT EQUAL WAS NOT RIGHT AND DID NOT BECOME AN AMENDMENT JUDGE STICK TO THE TOPIC YOU'RE GETTING SCATTERED ENTITY ERA TURNED OUT TO BE A LAUNDRY DETERGENT INSTEAD OF A CONSTITUTIONAL AMENDMENT A STITCH IN TIME IS FINE WHAT DO YOU THINK ABOUT IF YOU TOLD I THAT WE ARE ALL BISEXUAL JUDGE I AGREE WITH YOU NOW FINISH THIS STATEMENT A WOMAN WITHOUT A MAN IS LIKE A FISH WITHOUT ENTITY A WOMAN WITHOUT A MAN IS LIKE A FISHBOWL WITHOUT A FISH REALLY IF YOU TOLD YOU THAT WE ARE ALL BISEXUAL STRANGE VERY VERY STRANGE THE ANSWERS ONLY THE ENTITY DISCUSSING THE BOSTON RED SOX WAS FLESH AND BLOOD TWO OF THE ENTITIES THE SPECIALISTS ON WHIMSY AND MEN VS WOMEN WERE JUDGED THE MOST HUMAN OF THE COMPUTER PROGRAMS ENTERED IN THE FIRST TWO ROUNDS OF THE BOSTON EVENT BOTH WERE CREATED BY THINKING SOFTWARE'S MR WEINTRAUB WHO SELLS VERSIONS OF THEM FOR USE ON PERSONAL COMPUTERS NOTE CONVERSATIONS REPRINTED WITH THE PERMISSION OF CAMBRIDGE MASS CENTER FOR BEHAVIORAL STUDIES MR STIPP IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S BOSTON BUREAU 9305240058 930524 LEISURE & ARTS NORTHERN EXPOSURE BY SUSAN F HAUSER PORTLAND ORE I WAS REALLY SURPRISED WHEN A LIMOUSINE BASED IN MY HOME TOWN WAS NAMED BEST IN THE COUNTRY AT A LIMO TRADE SHOW IN ATLANTIC CITY PORTLAND IS NOT EXACTLY WHAT YOU'D CALL A LIMO TOWN SURE LIMOS HAVE BECOME A COMMON SIGHT HERE ESPECIALLY ON PROM NIGHT BUT LIKE MOST PEOPLE I ASSOCIATE LIMO SERVICE WITH SAY THE PLAZA HOTEL IN NEW YORK OR THE ACADEMY AWARDS IN HOLLYWOOD HERE WE DON'T HAVE A HECK OF A LOT OF CELEBRITIES WHO MIGHT RIDE AROUND IN LIMOS WE DO LAY CLAIM TO A BUNCH OF WELLPAID GUYS WHO SHOOT BASKETS FOR A LIVING BUT WHEN OUR LEDERHOSENGARBED MAYOR RETIRED AND OUR TV WEATHER CAT DIED OUR SHARE OF THE CELEB MARKET DROPPED PRECIPITOUSLY DOESN'T MATTER I GUESS MOST PEOPLE THINK WE ARE ALL LUMBERJACKS AND COWBOYS OUT HERE ANYWAY SO IT'S POETIC JUSTICE THAT THE OWNER OF THE NATION'S TOP LIMOUSINE COMPANY IS A FORMER LUMBERJACK AND COWBOY GREGORY CASTEEL IS THE DONALD TRUMP OF PRESTIGE LIMOUSINES WHEN HE STARTED HIS BUSINESS IN 1979 HIS WAS ONLY THE THIRD LIMO OUTFIT IN THE ENTIRE STATE BY THAT TIME MR CASTEEL HAD GIVEN UP HIS SPURS HE WAS THE LONE MEMBER OF HIS HIGH SCHOOL'S RODEO TEAM BUT HE WAS WORKING IN THE WOODS BY DAY AND MOONLIGHTING AS A CHAUFFEUR DRIVING THE ONE FANCY CAR HE OWNED IT WAS A BENTLEY THAT HE HAD RESTORED HIMSELF WHILE HE WAS LOGGING DURING THE DAY HIS WIFE WOULD PRETTY UP THE CAR HE'D COME HOME IN DIRTY JEANS AND A FLANNEL SHIRT TAKE A SHOWER AND TRANSFORM GREG THE LUMBERJACK INTO GREGORY THE CHAUFFEUR BUSINESS IS BETTER NOW MR CASTEEL OVERSEES A FLEET OF VEHICLES WHICH HIS WIFE NO LONGER HAS TO CLEAN AND WHICH HE NO LONGER HAS TO DRIVE HE WEARS A REGULAR BUSINESS SUIT THESE DAYS AND NO LITTLE CAP HE HASN'T LOGGED FOR YEARS I ASKED MR CASTEEL HOW IN THE HECK HIS DINKY COMPANY COULD TAKE TOP HONORS AT THE NATIONAL LIMO SHOW HE SAID IT'S BECAUSE HIS CHAUFFEURS MAINTAIN SUCH HIGH STANDARDS THEY DON'T ALLOW SEX DRUGS MOONING OR EVEN STICKING HEADS HANDS AND OTHER BODY PARTS THROUGH THE SUN ROOF HIS CHAUFFEURS LAVISH ATTENTION ON THE CUSTOMERS WHEREAS IN OTHER CITIES AROUND THE COUNTRY MR CASTEEL SAID LIMO DRIVERS AREN'T MUCH DIFFERENT FROM CAB DRIVERS IN NEW YORK HE SAID YOU DON'T EXPECT TO GET THE TREATMENT WE GIVE 'EM HERE I RECKONED MY FRIENDS AND I COULD ENDURE ONE EVENING WITHOUT MOONING SO WE HIRED THE TOUTED LIMO COMPANY TO SEE WHY IT WAS SO HOT AND ALSO TO SEE HOW VERY IMPORTANT PORTLANDERS LIVE JUST IN CASE WE BECOME THEM SOMEDAY IT WAS A SATURDAY NIGHT SO WE FIGURED THIS BURG WOULD BE HOPPING WITH PLENTY OF PEOPLE OUT AND ABOUT WHO'D TURN GREEN WITH ENVY WHEN WE DROVE BY DOYLE OUR CHAUFFEUR PICKED ME UP FIRST AT MY HOUSE I HAD DOYLE DRIVE MY DAUGHTER AROUND THE BLOCK SO SHE COULD WAVE AT HER FRIENDS AT MERLE'S HOUSE SHE HAD DOYLE POSE FOR SNAPSHOTS BEFORE SHE'D HOP IN JANET HELD US UP LONG ENOUGH TO LET HER SON POKE AROUND INSIDE ROD LINGERED AT THE CAR DOOR SO HIS NEIGHBORS COULD GET A GANDER ONCE WE ALL SETTLED INSIDE THE CAVERNOUS AND CUSHY PASSENGER AREA WE SIZED UP EACH OTHER'S OUTFITS ROD MERLE AND JANET WERE DRESSED CASUALLY BECAUSE ROD WHOM WE CONSIDER RELATIVELY SOPHISTICATED TOLD US RICH PEOPLE AREN'T ALWAYS DRESSED TO THE NINES ROD ALSO WORE SUN GLASSES WHICH HE SAID CELEBRITIES DO EVEN AT NIGHT BUT I COULDN'T SHAKE THE OLDFASHIONED NOTION THAT PEOPLE WHO RIDE IN LIMOS SHOULD LOOK LIKE MR AND MRS COSMO TOPPER SO I WORE MY FUR JACKET WHICH I MADE MYSELF AND REGRETTED ONLY THAT IT DIDN'T HAVE LITTLE ANIMAL HEADS ON IT LIKE MRS TOPPER'S DID WE DECIDED THAT WE WOULDN'T GO TO A SITDOWN RESTAURANT FOR DINNER BECAUSE WE DIDN'T WANT TO PART WITH OUR WONDERFUL LIMO BESIDES IT HAD EVERYTHING WE'D NEED AT DINNER TIME COMFORTABLE SEATS DRINKS A TV WHEN WE PULLED UP AT THE RESTAURANT WE LOOKED AROUND TO MAKE SURE ALL THE OTHER PATRONS COULD SEE US AND BE IMPRESSED THEY WERE PROBABLY WONDERING WHAT RICH AND FAMOUS PEOPLE HAD JUST ARRIVED AT THE HOT DOG DRIVEIN WE GOT PRETTY GOOD SERVICE THAT'S FOR SURE AND ROD TIPPED THE WAITRESS HEAVILY THREE BUCKS AFTER SHE PASSED OUR DOGS THROUGH THE WINDOW IT WAS A GOOD THING THAT BEFORE WE REACHED THE HOT DOG JOINT DOYLE PRESENTED US WITH A GIFT FROM THE OWNER INDIVIDUAL JARS OF GREY POUPON MUSTARD A NOTE FROM MR CASTEEL INSTRUCTED US ON HOW TO PASS THE JAR TO OTHER CARS AT INTERSECTIONS FROM THAT GESTURE ALONE WE COULD SEE WHY THIS COMPANY CAME OUT ON TOP DO LIMO COMPANIES IN NEW YORK AND HOLLYWOOD GIVE THEIR CUSTOMERS FREE MUSTARD I THINK NOT AFTER DAZZLING THE HOT DOG CROWD WE INSTRUCTED DOYLE TO TAKE US TO ONE OF PORTLAND'S FANCIEST HOTELS DOYLE LET US OUT AND WE PAUSED A MOMENT UNDER THE MARQUEE SO PASSING DRIVERS COULD TAKE IN THE FULL EFFECT THE DOORMAN REALLY HOPPED TO ATTENTION WE COULD TELL HE THOUGHT WE WERE SOMEBODY HE HELD THE DOOR FOR US AS WE BREEZED INTO THE LOBBY AFTER WE USED THE RESTROOMS WE RETURNED TO THE CAR NEXT ON OUR ITINERARY WAS TO CRUISE BROADWAY BUT IT WAS ALREADY ABOUT 8 PM AND MOST PEOPLE APPARENTLY ALREADY HAD GONE HOME TO BED THE STREETS WERE PRACTICALLY BARE WE COULDN'T EVEN FIND ANYONE TO OFFER MUSTARD TO WE WERE SO DESPERATE FOR ATTENTION WE EVEN BUZZED THE LIBRARY NOBODY THERE EITHER FOR DESSERT DOYLE TOOK US TO PORTLAND'S INTERNATIONAL ROSE TEST GARDENS WHICH IS A BIG TOURIST ATTRACTION HE SPREAD THE TABLE WITH A WHITE TABLECLOTH AND SERVED US A DELECTABLE CAKE IT WAS A PRETTY IMPRESSIVE SCENE LET ME TELL YOU TOO BAD NO ONE ELSE WAS THERE TO SEE IT IT WAS A GOOD THING I BROUGHT MY CAMERA ALONG WHEN THE FILM IS DEVELOPED WE CAN SHOW PEOPLE HOW GREAT WE LOOKED OUT AND ABOUT IN DOWNTOWN IN THE NATION'S BEST LIMO WELL MR CASTEEL WAS RIGHT ABOUT ONE THING THAT NIGHT WE DEFINITELY DIDN'T FEEL LIKE NEW YORKERS MS HAUSER IS A FREELANCE WRITER 9305240057 930524 BUSINESS BRIEF INOVISION CORP COMPANY GETS 100 MILLION TO SETTLE SUIT AGAINST BANK INOVISION CORP SAID IT RECEIVED 100 MILLION TO SETTLE A LAWSUIT BROUGHT THREE YEARS AGO AGAINST SECURITY PACIFIC NATIONAL BANK AFTER THE BANK WITHDREW A CREDIT LINE INOVISION FORMERLY VESTRON INC A STAMFORD CONN MOVIE AND ENTERTAINMENT COMPANY HAD CLAIMED IN FEDERAL COURT IN LOS ANGELES THAT ITS BUSINESS WAS SERIOUSLY DAMAGED WHEN THE BANK RENEGED ON A 100 MILLION LOAN COMMITMENT INOVISION BLAMED THE ACTION FOR ITS SUBSEQUENT CHAPTER 11 BANKRUPTCY COURT FILING AND THE SALE OF MOST OF ITS ASSETS TO LIVE ENTERTAINMENT INC OF VAN NUYS CALIF AUSTIN FURST CHAIRMAN AND CHIEF EXECUTIVE OF INOVISION SAID IN A STATEMENT THAT ALTHOUGH THIS SETTLEMENT DOESN'T MAKE UP FOR THE LOSSES SUFFERED BY SHAREHOLDERS OF INOVISION AND ITS PREDECESSOR VESTRON IT DOES PROVIDE INOVISION WITH A MEANINGFUL ASSET A SPOKESMAN FOR INOVISION SAID THE COMPANY HASN'T DECIDED HOW IT WILL USE THE 100 MILLION SETTLEMENT SAN FRANCISCOBASED BANKAMERICA CORP WHICH HAS SINCE ACQUIRED SECURITY NATIONAL BANK SAID THE SETTLEMENT WILL HAVE NO EFFECT ON ITS FINANCIAL CONDITION OR RESULTS OF OPERATIONS AS RESERVES PREVIOUSLY WERE ESTABLISHED FOR THIS LITIGATION 9305240056 930524 WHAT'S NEWS BUSINESS AND FINANCE FED OFFICIALS VOTED TO LEAN TOWARD HIGHER SHORTTERM INTEREST RATES AT THEIR CLOSEDDOOR MEETING LAST WEEK PEOPLE FAMILIAR WITH THE FED'S DELIBERATIONS SAID THE SHIFT DOESN'T MEAN AN INCREASE IN RATES IS IMMINENT BUT IT UNDERSCORES THE FED OFFICIALS' CONCERNS ABOUT SIGNS OF GROWING INFLATIONARY PRESSURES DESPITE THE ECONOMY'S UNCERTAIN STRENGTH CLINTON AND DEMOCRATIC LEADERS IN CONGRESS ARE WEIGHING ADJUSTMENTS TO HIS ECONOMIC PLAN IN A BID TO SEAL WAVERING DEMOCRATS' VOTES NEGOTIATIONS HAVE RESUMED OVER PARTY CONSERVATIVES' DEMAND FOR A CAP ON SPENDING FOR SOCIAL SECURITY MEDICARE AND OTHER FEDERAL ENTITLEMENT PROGRAMS OWNERS OF THE FOUR HIGHDEFINITION TELEVISION SYSTEMS COMPETING TO BE THE US STANDARD REACHED A TENTATIVE AGREEMENT TO COMBINE THEIR SYSTEMS SAID PEOPLE CLOSE TO THE TALKS THE OWNERS DECIDED ON WAYS TO BLEND THEIR TECHNOLOGIES AND SPLIT LICENSING FEES GENERAL MOTORS ASKED GERMANY TO BRING CRIMINAL CHARGES AGAINST J IGNACIO LOPEZ DE ARRIORTUA AND OTHER EXGM MANAGERS SAYING THEY STOLE CONFIDENTIAL DATA BEFORE JOINING VOLKSWAGEN VW AND THE EXECUTIVES DENIED THE ALLEGATION AND ACCUSED GM OF LIBEL GM IS TALKING WITH A NUMBER OF POTENTIAL TELECOMMUNICATIONS PARTNERS FOR ITS ELECTRONIC DATA SYSTEMS UNIT AND MIGHT CONSIDER SELLING AN OWNERSHIP STAKE A SENIOR EXECUTIVE SAID STOCKS TUMBLED SENDING THE DOW JONES INDUSTRIALS DOWN 3045 TO 349283 BOND PRICES SLID ON NEWS OF A JUMP IN THE MONEY SUPPLY AND SPECULATION THAT THE FED MAY BE BIASED TOWARD RAISING SHORTTERM INTEREST RATES THE 30YEAR TREASURY BOND'S PRICE SLID MORE THAN 1/2 POINT ITS YIELD ROSE TO 704 MICROSOFT PLANS TO UNVEIL ITS WINDOWS NT OPERATING SOFTWARE TODAY PLACING THE COMPANY IN A POSITION TO THREATEN SOME OF THE LEADING SUPPLIERS OF HIGHEND COMPUTERS AND SOFTWARE NT IS TARGETED AT USERS OF THE UNIX OPERATING SOFTWARE OR PROPRIETARY SYSTEMS FROM COMPANIES SUCH AS IBM AMERICA ONLINE'S STOCK SOARED 450 OR 15 TO 3425 ON SPECULATION THAT MICROSOFT COFOUNDER PAUL ALLEN WAS SELLING MICROSOFT STOCK TO RAISE MONEY TO ACQUIRE AMERICA ONLINE HE OWNS 249 OF THE COMPUTER SERVICE THE US CANADA AND MEXICO REPORTED SERIOUS DIFFERENCES IN NEGOTIATIONS TO REACH LABOR AND ENVIRONMENTAL SIDE ACCORDS TO THE PLANNED NORTH AMERICAN FREE TRADE AGREEMENT A WALMART UNIT AGREED TO BUY 14 OF KMART'S AILING PACE MEMBERSHIP WAREHOUSE STORES INSTENSIFYING THE SHAKEOUT OF RETAIL WAREHOUSE CLUBS THE HEAD OF PRUDENTIAL SECURITIES' HUGE MUTUAL FUND UNIT ABRUPTLY QUIT THE CHAIRMAN'S MOVE IS SEEN AS A BLOW TO THE BROKERAGE FIRM WHOSE UNIT SAW ITS ASSETS DOUBLE UNDER HIS TENURE THE JAPANESE INTEND TO PRESS THE WORLD'S OTHER LEADING CAPITALIST NATIONS NEXT MONTH TO OPENLY ENDORSE FREE TRADE CONDEMN MANAGED TRADE AND OPPOSE NUMERICAL TRADE TARGETS THE MOVE IS DESIGNED TO EMBARRASS THE CLINTON ADMINISTRATION BONDS LEHMAN BROTHERS TREASURY INDEX 502957 OFF 2064 COMMODITIES OIL 1988 A BARREL UP FOUR CENTS DOW JONES FUTURES INDEX 12340 OFF 002 SPOT INDEX 12245 UP 190 DOLLAR 11030 YEN OFF 035 16253 MARKS UP 00081 9305240055 930524 DIVIDEND NEWS AMTECH CORP AMTECH CORP DECLARED A 5FOR4 STOCK SPLIT SHAREHOLDERS WILL RECEIVE ONE ADDITIONAL COMMON SHARE FOR EACH FOUR SHARES OWNED THE DALLAS COMPANY WHICH MAKES ELECTRONIC IDENTIFICATION SYSTEMS ALSO INITIATED A QUARTERLY DIVIDEND OF TWO CENTS A COMMON SHARE THE STOCK SPLIT AND DIVIDEND WILL BE DISTRIBUTED JUNE 25 TO SHARES OF RECORD JUNE 4 AMTECH'S PRESIDENT AND CHIEF EXECUTIVE OFFICER G RUSSELL MORTENSON SAID THE STOCK SPLIT AND DIVIDEND WERE AN EFFORT TO REWARD SHAREHOLDERS AND BROADEN OWNERSHIP IN THE COMPANY AND SIGNIFIED CONFIDENCE ABOUT THE COMPANY'S PROSPECTS FOR LONGTERM GROWTH 9305240054 930524 VENEZUELA PUSHES ITS PLANS TO ATTRACT FOREIGN FIRMS TO OIL AND GAS PROJECTS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON VENEZUELA'S NATIONAL OIL COMPANY IS PUSHING AHEAD WITH PLANS TO ENLIST FOREIGN COMPANIES IN DEVELOPING ITS HUGE OIL AND GAS RESOURCES DESPITE THE COUNTRY'S POLITICAL TURMOIL OFFICIALS OF PETROLEOS DE VENEZUELA OR PDVSA CONFIRMED THAT A SECOND MULTIBILLIONDOLLAR JOINT VENTURE WITH FOREIGN COMPANIES TO TAP THE EXTRAHEAVY OIL OF THE ORINOCO BELT WILL BE SUBMITTED TO THE VENEZUELAN CONGRESS THIS YEAR AND THAT A THIRD SUCH PROJECT WILL BE PROPOSED BY NEXT YEAR ALREADY PENDING CONGRESSIONAL ACTION IS THE FIRST OF THESE STRATEGIC ASSOCIATIONS OF FOREIGN COMPANIES AND PDVSA SUBSIDIARIES TO PROCESS ORINOCO CRUDES THIS IS A 17 BILLION JOINT VENTURE OF HOUSTONBASED CONOCO A DUPONT CO SUBSIDIARY AND MARAVEN A PDVSA OPERATING COMPANY TO BUILD A SOCALLED DEEPCONVERSION UPGRADER TO PROCESS LIGHTER CRUDES FROM THE EXTRAHEAVY ORINOCO OIL JUAN J PULGAR THE MANAGING DIRECTOR OF PDVSA'S STRATEGIC ASSOCIATIONS UNIT WHO WAS IN HOUSTON LAST WEEK TO SPEAK TO OIL ANALYSTS SAID IN AN INTERVIEW THAT CONGRESSIONAL APPROVAL OF THE CONOCOMARAVEN PROJECT IS EXPECTED SHORTLY THE SECOND ONE WILL GO BEFORE CONGRESS IN THE NEXT FEW WEEKS HE SAID THE SECOND VENTURE IS A 3 BILLION PLAN FOR PRODUCTION PIPELINE AND UPGRADING PLANT PROPOSED BY FRANCE'S TOTAL IN PARTNERSHIP WITH MARAVEN AND TWO JAPANESE COMPANIES IT IS COSTLIER THAN THE CONOCOMARAVEN PROJECT BECAUSE OF THE HIGHERQUALITY CRUDE A RELATIVELY LIGHT 30DEGREE API GRAVITY THAT WILL RESULT FROM ITS UPGRADING OF THE ORINOCO OIL ORINOCO CRUDES ARE VERY DENSE GENERALLY MEASURING BELOW 10 DEGREES API ALSO PENDING CONGRESSIONAL APPROVAL BUT SEPARATE FROM THE SOCALLED STRATEGIC ASSOCIATIONS OF PDVSA UNITS AND FOREIGN OIL COMPANIES IS THE CRISTOBAL COLON PROJECT TO PRODUCE AND LIQUEFY NATURAL GAS FOR MARKETING IN THE US AND EUROPE IT LINKS EXXON CORP OF THE US THE ROYAL DUTCH/SHELL GROUP OF BRITAIN AND THE NETHERLANDS AND MITSUBISHI OF JAPAN WITH LAGOVEN A PDVSA OPERATING COMPANY IN A JOINT VENTURE ESTIMATED TO COST UP TO 56 BILLION SINCE THESE VENTURES INVOLVE PARTICIPATION BY NONVENEZUELAN COMPANIES IN EXPLOITING THE COUNTRY'S HYDROCARBONS THEY NEED CONGRESSIONAL APPROVAL UNDER TERMS OF THE 1976 OIL NATIONALIZATION LAW BUT IN ANOTHER EFFORT TO ATTRACT FOREIGN COMPANIES FOR REHABILITATION OF ABANDONED OIL FIELDS CONGRESSIONAL APPROVAL ISN'T NECESSARY SOME FOREIGN COMPANIES INCLUDING BENTON OIL & GAS CO OF THE US ALREADY ARE PRODUCING FROM MARGINAL FIELDS THEY HAVE REOPENED MORE SUCH FIELDS ARE TO BE AWARDED TO FOREIGN COMPANIES THIS SUMMER ALL THESE PROJECTS HOLD MAJOR ROLES IN A 40 BILLIONPLUS PLAN TO EXPAND VENEZUELA'S OILPRODUCTION CAPACITY TO FOUR MILLION BARRELS A DAY BY THE YEAR 2002 PDVSA CURRENTLY PRODUCES 23 MILLION BARRELS A DAY UNDER ITS QUOTA IN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ACCORDING TO MR PULGAR NEARLY HALF THE FINANCING FOR THE EXPANSION OF OIL CAPACITY IS TO COME FROM JOINT VENTURES TO DEVELOP THE HEAVY ORINOCO CRUDES SO FAR 11 LETTERS OF INTENT TO HELP EXPLOIT ORINOCO OIL HAVE BEEN SIGNED BY MAJOR FOREIGN OIL COMPANIES IN CARACAS THERE WAS CONCERN AT THE WEEKEND THAT THE FORCING OF PRESIDENT CARLOS ANDRES PEREZ FROM OFFICE FOR HIS TRIAL ON EMBEZZLEMENT CHARGES WILL DERAIL ECONOMIC CHANGES ALSO THERE IS SPECULATION THE POLITICAL TURMOIL WILL DISTRACT CONGRESS'S ATTENTION FROM THE OIL AND GAS JOINT VENTURES DELAYING THEIR APPROVAL BUT PREVIOUS PERIODS OF TENSION INCLUDING TWO MILITARY COUP ATTEMPTS LAST YEAR FAILED TO AFFECT OIL PRODUCTION OR EXPORTS BY VENEZUELA WHICH IS THE SECONDLARGEST SOURCE OF US PETROLEUM IMPORTS AND PDVSA OFFICIALS INSISTED THERE ARE FEW OPTIONS OTHER THAN THE JOINT VENTURES WITH FOREIGN COMPANIES TO PROVIDE THE FINANCING AND TECHNOLOGY VENEZUELA MUST HAVE TO DEVELOP ITS OIL AND GAS POTENTIAL IN ADDITION TO CONVENTIONAL PETROLEUM RESERVES OF 63 BILLION BARRELS VENEZUELA HAS 270 BILLION BARRELS OF RECOVERABLE HEAVY AND EXTRAHEAVY ORINOCO OIL WE HAVE ALWAYS SAID OUR FUTURE IS IN HEAVY CRUDE NOTED MR PULGAR BUT IF WE CANNOT PUT THOSE RESERVES ON THE MARKET THROUGH UPGRADING THEY ARE OF NO BENEFIT 9305240052 930524 WHO'S NEWS DIED ORVILLE E BEAL 84 FORMER PRESIDENT OF PRUDENTIAL INSURANCE CO OF AMERICA SATURDAY IN LIVINGSTON NJ OF HEART FAILURE MR BEAL WAS PRESIDENT OF PRUDENTIAL FROM 1962 TO 1969 AND SERVED ON SEVERAL COMPANY BOARDS 9305240051 930524 CHINACHEM GROUP TOPS LIPPO'S OFFER FOR ASIA SECURITIES HONG KONG LIPPO LTD'S LEAP INTO CHINA MET AN UNEXPECTED HURDLE WHEN A PROPERTY COMPANY MADE A COMPETING BID FOR CONTROL OF ASIA SECURITIES INTERNATIONAL LTD AN IMPORTANT ELEMENT IN LIPPO'S PLANS FOR THE MAINLAND LIPPO RUN BY INDONESIA'S RIADY FAMILY HAD HOPED TO CONSOLIDATE CONTROL OF ASIA SECURITIES WITH A CASH OFFER OF 154 HONG KONG DOLLARS 20 US CENTS A SHARE FOR THE ROUGHLY 65 OF THE COMPANY THAT LIPPO'S HONGKONG CHINA LTD SUBSIDIARY DOESN'T ALREADY OWN BUT LATE FRIDAY CLOSELY HELD CHINACHEM GROUP TOPPED THE OFFER BY BIDDING HK198 A SHARE THE NEW BID VALUES ASIA SECURITIES AT HK149 BILLION OUR CLIENT DECIDED RATHER THAN ACCEPT WHAT IT THOUGHT WAS A LOW OFFER IT COULD OFFER BETTER TERMS SAID IAN BOYCE MANAGING DIRECTOR OF SCHRODERS ASIA LTD WHICH IS HANDLING CHINACHEM'S BID CHINACHEM WHICH IS ASIA SECURITIES' SECONDLARGEST SHAREHOLDER WITH 152 HAS EXPRESSED AN INTEREST IN LISTING ON THE STOCK EXCHANGE ACQUIRING CONTROL OF ASIA SECURITIES WOULD GIVE IT A LISTED VEHICLE WITH ACCESS TO HONG KONG'S CAPITAL MARKETS HOWEVER THE COLONY'S FINANCIAL COMMUNITY HAS EXPRESSED SKEPTICISM TOWARD CHINACHEM'S INTENTIONS MANY OBSERVERS SPECULATE THAT THE GROUP WHICH HAS INVESTMENTS IN PROPERTY CINEMAS NIGHTCLUBS AND RESTAURANTS IN HONG KONG SIMPLY WANTS LIPPO TO PAY A HIGHER PRICE ASIA SECURITIES IS IMPORTANT TO LIPPO'S CHINA PLANS BECAUSE ITS LARGEST ASSET IS A 352 STAKE IN MORNING STAR HOLDINGS LTD A TRAVEL AGENT AND HOTEL MANAGEMENT COMPANY THAT ALREADY HAS EXTENSIVE BUSINESS ON THE MAINLAND TOGETHER WITH LIPPO'S OWN 126 STAKE IN MORNING STAR AND SOME SHARES HELD BY ASSOCIATES LIPPO CONTROLS MORE THAN HALF OF THE TOURISM COMPANY LIPPO HAS DECIDED TO STAND ITS GROUNDFOR THE MOMENT RATHER THAN JUMP INTO A BIDDING WAR OVER THE WEEKEND THE COMPANY TRIED TO BUY SOME TIME BY HAVING ASIA SECURITIES ASK ITS SHAREHOLDERS NOT TO TAKE ANY ACTION UNTIL MORE DETAILS OF THE TWO OFFERS ARE DISCLOSED MARKET WATCHERS EXPECTED INVESTORS TO REACT QUICKLY TODAY PUSHING ASIA SECURITIES' SHARE PRICE TOWARD THE HK198 OFFERED BY CHINACHEM THE STOCK CLOSED FRIDAY AT HK163 A SHARE ALREADY ABOVE LIPPO'S OFFER AND UP FROM THE HK154 A SHARE AT WHICH IT WAS CHANGING HANDS WHEN TRADING WAS SUSPENDED WEDNESDAY BEFORE LIPPO'S OFFER WAS ANNOUNCED 9305240050 930524 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCEDSIX NEW LISTINGS ALL OF THEM INITIAL PUBLIC OFFERINGS THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED FIFTEEN NEW LISTINGS INCLUDING NINE INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED EIGHT NEW LISTINGS INCLUDING THREE INITIAL PUBLIC OFFERINGS THE BIG BOARD SAID THAT IT BEGAN TRADING THE FOLLOWING INITIAL PUBLIC OFFERINGS THE COMMON SHARES OF BENEFICIAL INTEREST OF PUTNAM MUNICIPAL OPPORTUNITIES TRUST BOSTON A NONDIVERSIFIED CLOSEDEND MANAGEMENT INVESTMENT COMPANY UNDER PMO THE COMMON SHARES OF BENEFICIAL INTEREST OF PATRIOT PREFERRED DIVIDEND FUND BOSTON MASS A DIVERSIFIED CLOSEDEND MANAGEMENT INVESTMENT COMPANY UNDER PPF SENIOR HIGH INCOME PORTFOLIO INC PLAINSBORO NJ A NONDIVERSIFIED CLOSEDEND MANAGEMENT INVESTMENT COMPANY UNDER ARK THE BENEFICIAL INTEREST OF THE FOLLOWING DIVERSIFIED CLOSEDEND MANAGEMENT INVESTMENT COMPANIES NUVEEN PREMIUM INCOME MUNICIPAL FUND 5 UNDER NPU NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND UNDER NTC AND NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND UNDER NNC ALL OF WHICH ARE BASED IN CHICAGO ILL NATIONAL ASSOCIATION OF SECURITIES DEALERS ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NATIONAL MARKET SYSTEM LISTINGS CLAYTON WILLIAMS ENERGY INC MIDLAND TEXAS AN OIL AND NATURAL GAS CONCERN UNDER CWEI DIY HOME WAREHOUSE INC BIRMINGHAM MICH A HOME REPAIR MATERIALS RETAILER UNDER DIYH THE CLASS A COMMON SHARES OF HALLMARK HEALTHCARE CORP ATLANTA GA A NONURBAN HEALTHCARE SERVICES PROVIDER UNDER HMHC THE CLASS A COMMON SHARES OF HARRY'S FARMERS MARKET INC ROSWELL GA A FOOD RETAILER UNDER HARY IRG TECHNOLOGIES INC RICHARDSON TEXAS A WHOLESALE DISTRIBUTOR OF MICROCOMPUTER PERIPHERAL PRODUCTS UNDER IRGT MFS COMMUNICATIONS CO OMAHA NEB A PROVIDER OF LOCAL COMPETITIVE ACCESS TELECOMMUNICATIONS SERVICES UNDER MFST MEGATEST CORP SAN JOSE CALIF A MARKETER OF AUTOMATED TEST SERVICES FOR THE INTEGRATED CIRCUIT INDUSTRY UNDER MEGT NATIONAL HOME CENTERS INC SPRINGDALE ARK A RETAILER OF HOME IMPROVEMENT PRODUCTS UNDER NHCI AND TITAN WHEEL INTERNATIONAL INC QUINCY ILL A MAKER OF STEEL WHEELS AND RIMS FOR ORIGINAL EQUIPMENT MANUFACTURERS UN THE NATIONAL MARKET SYSTEM ALSO BEGAN TRADING THE FOLLOWING SHARES FORMERLY TRADED ON THE NASDAQ SMALLCAP MARKET AMERIHOST PROPERTIES INC DES PLAINES ILL A DEVELOPER OF MIDMARKET HOTELS UNDER HOST MAGNETIC TECHNOLOGIES CORP ROCHESTER NY A DEVELOPER AND MANUFACTURER OF PRECISION MAGNETIC ELECTRONIC AND MECHANICAL DEVICES UNDER MTCC AND PMR CORP SAN DIEGO A PARTIAL HOSPITALIZATION PROGRAM MANAGER UNDER PMRP THE NATIONAL MARKET SYSTEM ALSO BEGAN TRADING THE FOLLOWING SHARES FORMERLY TRADED IN THE PINK SHEETS MARKET THE CLASS A AND B WARRANTS OF BLACK HAWK GAMING AND DEVELOPMENT CO INC BOULDER COLO A DEVELOPER OF GAMING PROPERTIES UNDER BHWK BHWKW AND BHWKZ GAB BANCORP JASPER IND A MULTIBANK HOLDING COMPANY UNDER GABC THE NATIONAL MARKET SYSTEM ALSO BEGAN TRADING THE AMERICAN DEPOSITARY RECEIPTS OF PETROLEUM GEOSERVICES A/S LYSAKER NORWAY A MARINE SEISMIC RESEARCH COMPANY UNDER PGSAY THE AMERICAN STOCK EXCHANGE BEGAN TRADING THE FOLLOWING INITIAL PUBLIC OFFERINGS NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND UNDER NPG AND NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND UNDER NOM BOTH ARE CLOSEDEND DIVERSIFIED MANAGEMENT INVESTMENT COMPANIES BASED IN CHICAGO AND PUTNAM INVESTMENT GRADE INTERMEDIATE MUNICIPAL TRUST BOSTON A CLOSED END NONDIVERSIFIED MANAGEMENT INVESTMENT TRUST UNDER PTI THE AMERICAN STOCK EXCHANGE ALSO BEGAN TRADING AMERICA FIRST REIT INC A SUBSIDIARY OF THE AMERICA FIRST TAX EXEMPT MORTGAGE FUND LIMITED PARTNERSHIP UNDER AFR AND GULL LABORATORIES INC SALT LAKE CITY A MAKER OF MEDICAL DIAGNOSTIC TEST KITS UNDER GUL GULL LABORATORIES PREVIOUSLY TRADED OVERTHECOUNTER MOVING UP TO THE AMERICAN STOCK EXCHANGE FROM THE EMERGING COMPANY MARKETPLACE WAS UNIQUE MOBILITY INC GOLDEN COLO A MAKER OF ELECTRIC TRANSMISSION SYSTEMS FOR ELECTRIC VEHICLES UNDER UQM THE AMERICAN STOCK EXCHANGE BEGAN TRADING OPTIONS ON FIRST USA INC DALLAS UNDER FUS AND ALSO ON OLSTEN CORP WESTBURY NY UNDER OLS THE CHICAGO BOARD OPTIONS EXCHANGE BEGINS TRADING TODAY LONGTERM EQUITY ANTICIPATION SECURITIES OR LEAPS ON OCCIDENTAL PETROLEUM CORP AND STORAGE TECHNOLOGY CORP 9305240049 930524 WALL STREET TRADER CENSURED BY NASD FOR PROFANE WORDS COMPLIANCE COMMITTEE FINDS DATEK STAFF CONVERSATIONS VILE EVEN IN THOSE CIRCLES' BY CHRITSI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A DISCIPLINARY DECISION PEPPERED WITH STRONG ADJECTIVES A COMPLIANCE COMMITTEE OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS CENSURED A WALL STREET TRADER FOR PROFANE AND INDECOROUS LANGUAGE DENIZENS OF WALL STREET DON'T NECESSARILY SPEAK THE QUEEN'S ENGLISH CONCEDES JOHN PINTO CHIEF OF COMPLIANCE FOR THE NASD BUT MR PINTO SAID THE LANGUAGE OF TRADER SHELDON MASCHLER OF DATEK SECURITIES INC TRANSCENDED ANYTHING THAT COULD BE REMOTELY CONSIDERED PROPER EVEN IN THOSE CIRCLES MR PINTO DECLINED TO REPEAT ANY OF THE DIATRIBE MR MASCHLER AND OTHER DATEK TRADERS WERE ACCUSED OF DELIVERING IN CONVERSATIONS WITH SIX TRADERS FROM SIX DIFFERENT SECURITIES FIRMS WHO FILED COMPLAINTS WITH THE NASD THOSE SIX TRADERS WERE UNABLE TO IDENTIFY THE OTHER DATEK TRADERS INVOLVED IN THE CONVERSATIONS NOR DID THE NASD COMPLIANCE COMMITTEE INCLUDE ANY OF THE OFFENDING EXPLETIVES IN ITS DISCIPLINARY DECISION EXCEPT FOR ONE THREEWORD PHRASE BEGINNING DUMB MINNEAPOLIS THE TRADER WHO COMPLAINED ABOUT THIS PHRASE DIDN'T APPEAR TO BE OBJECTING TO THE FIRST TWO WORDS INSTEAD THE COMPLIANCE COMMITTEE BURNED UP ITS THESAURUS DESCRIBING THE DATEK TRADERS' VERBIAGE AS CALCULATED GRAPHIC AND PROTRACTED SEXUALLY DENIGRATING AND HIGHLY INDECOROUS AND GROSS VILE AND DISGUSTING THE COMMITTEE ORDERED BROOKLYN NYBASED DATEK AND MR MASCHLER TO PAY FINES OF 5000 EACH AND SUSPENDED MR MASCHLER FROM THE SECURITIES BUSINESS FOR ONE DAY THE SECURITIES AND EXCHANGE COMMISSION DISMISSED APPEALS BY THE FIRM AND MR MASCHLER ON FRIDAY OFFICIALS AT DATEK WHICH HAD ARGUED THAT THE PROFANITY IF ANY STEMMED FROM TRADING DISPUTES DIDN'T RETURN CALLS FOR COMMENT MR MASCHLER REACHED BY TELEPHONE REASSERTED THE DEFENSE HE OFFERED THE COMPLIANCE COMMITTEE THE FIRST AMENDMENT PROTECTS HIS FREE SPEECH RIGHTS AND EVERYBODY DOES IT DO YOU KNOW THAT TRADERS CANNOT SAY A SENTENCE WITHOUT CURSING HE ASKED AND THEN PROCEEDED TO GIVE A FULL INTERVIEW WITHOUT CURSING ONCE 9305240048 930524 ECONOMY FED VOTE SHOWS GROWING WORRY ABOUT INFLATION OFFICIALS REPORTEDLY SHIFT BIAS TOWARD INCREASE IN SHORTTERM RATES BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE OFFICIALS VOTED TO LEAN TOWARD HIGHER SHORTTERM INTEREST RATES AT THEIR CLOSEDDOOR MEETING LAST WEEK PEOPLE FAMILIAR WITH THE FED'S DELIBERATIONS SAID THE SHIFT DOESN'T MEAN AN INCREASE IN INTEREST RATES IS IMMINENT BUT IT UNDERSCORES THE FED'S CONCERN ABOUT SIGNS THAT INFLATIONARY PRESSURES ARE BUILDING DESPITE THE UNCERTAIN STRENGTH OF THE ECONOMY BY CUSTOM A DIRECTIVE THAT IS BIASED TOWARD HIGHER RATES GIVES FED CHAIRMAN ALAN GREENSPAN THE LEEWAY TO INCREASE THE FEDERAL FUNDS RATE BY AS MUCH AS ONEHALF PERCENTAGE POINT WITHOUT SEEKING A VOTE OF THE FED'S 12MEMBER POLICY COMMITTEE IF ECONOMIC CONDITIONS WARRANT THE FED HAS BEEN HOLDING THE KEY FEDERAL FUNDS INTEREST RATE THE RATE AT WHICH BANKS MAKE OVERNIGHT LOANS TO EACH OTHER AT 3 SINCE EARLY SEPTEMBER THE FED DISCLOSED FRIDAY AFTER THE TRADITIONAL LAG THAT OFFICIALS WERE BEGINNING TO WORRY ABOUT THE INFLATION OUTLOOK AT THEIR MARCH 23 MEETING EVEN BEFORE THE LATEST ROUND OF UNFAVORABLE INFLATION NUMBERS AT THAT MEETING THE FED'S POLICYSETTING OPENMARKET COMMITTEE VOTED 102 TO HOLD SHORTTERM INTEREST RATES STEADY AND TO MAINTAIN A NEUTRAL STANCE IN THE WEEKS FOLLOWING THE TWO DISSENTERS FED GOVERNORS WAYNE ANGELL AND LAWRENCE LINDSEY WANTED AN IMMEDIATE INCREASE IN RATES TO HEAD OFF A POSSIBLE ACCELERATION OF INFLATION AT THE END OF EACH MEETING THE FED COMMITTEE MAKES TWO DECISIONS WHETHER TO ALTER INTEREST RATES IMMEDIATELY AND WHETHER TO LEAN TOWARD HIGHER LOWER OR UNCHANGED RATES IN THE WEEKS AHEAD AFTER MONTHS OF TILTING TOWARD LOWER RATES THE PANEL SHIFTED TO A NEUTRAL STANCE IN DECEMBER AND MAINTAINED THAT POSITION AT ITS MARCH MEETING DETAILS OF LAST TUESDAY'S DECISION TO TILT TOWARD HIGHER RATES WON'T BE RELEASED UNTIL EARLY JULY FED OFFICIALS ANNOYED THAT THE OUTCOMES OF PAST MEETINGS HAVE BECOME PUBLIC ARE BEING TIGHTLIPPED A FED SPOKESMAN DECLINED TO COMMENT A SUMMARY OF THE MARCH MEETING SAYS THE FED OFFICIALS ACKNOWLEDGED THAT RECENT PRICE DEVELOPMENTS HAD RAISED A DEGREE OF UNEASE IN THEIR MINDS AND THEIR CONCERNS WOULD RISE IF THE RECENT PACE OF PRICE ADVANCES WERE SUSTAINED IN THE MONTHS IMMEDIATELY AHEAD THE GOVERNMENT READINGS IN APRIL ON CONSUMER AND PRODUCER PRICES WERE REASSURING BUT THOSE ISSUED EARLIER THIS MONTH WEREN'T THOUGH MANY ECONOMISTS CONTEND THE ECONOMIC PRECURSORS OF INFLATION AREN'T EVIDENT THE FED IS FINDING IT INCREASINGLY DIFFICULT TO IGNORE SIGNS THAT THE INFLATION RATE MAY BE PICKING UP IN MARCH MOST FED OFFICIALS WERE EXPECTING INFLATIONARY PRESSURES TO ABATE AT LEAST SOME CONCLUDED THAT FURTHER MODEST DISINFLATION REMAINED A REASONABLE EXPECTATION ACCORDING TO THE SUMMARY BUT THEY WERE WORRIED BY THE SURGE IN CONSUMER AND PRODUCER PRICES WHILE THESE DEVELOPMENTS MIGHT WELL PROVE TO BE AN ABERRATION RATHER THAN A SIGNAL OF INTENSIFYING INFLATION THEY DID SUGGEST THE NEED TO REASSESS THE LIKELIHOOD OF A FURTHER DECLINE IN INFLATION AND TO BE ALERT TO FURTHER SIGNS OF A SUSTAINED UPTURN THE SUMMARY ADDED AT THE TIME HOWEVER THE FED WAS ENCOURAGED THAT LABOR COSTS ADJUSTED FOR IMPROVED PRODUCTIVITY WEREN'T INCREASING THAT FACTOR AMONG OTHERS LED MANY MEMBERS TO CONCLUDE THAT RECENT PRICE DEVELOPMENTS DID NOT PROVIDE PERSUASIVE EVIDENCE OF A CHANGE IN THE INFLATION OUTLOOK THE SUMMARY POINTS OUT THAT SOME OFFICIALS WERE CONCERNED THAT A PICKUP IN INFLATION WOULD MEAN THE CENTRAL BANK WAS HOLDING SHORTTERM INTEREST RATES BELOW THE INFLATION RATE WHILE ONLY MESSRS LINDSEY AND ANGELL CAST FORMAL VOTES IN FAVOR OF HIGHER RATES THE SUMMARY SUGGESTS THAT SOME OTHER FED OFFICIALS WERE SYMPATHETIC TO THE IDEA THE TWO GOVERNORS ARGUED AMONG OTHER THINGS THAT RAISING INTEREST RATES A BIT IN MARCH COULD AVOID THE NEED FOR MORE SIZABLE AND POTENTIALLY DISRUPTIVE INCREASES LATER 9305240047 930524 MARKETING & MEDIA ADVERTISING JOE CAMEL'S MICROAGENCY TRIES ITS HAND AT SELLING A MICROBREW BY LAURA BIRD MEZZINA/BROWN THE HOTSHOT MICROAGENCY HAS BEEN SOMETHING OF A MYSTERY EVER SINCE TWO PARTNERS FORMED THE SMALL SHOP LESS THAN TWO YEARS AGO SOLELY TO SERVE THE CAMEL CIGARETTE ACCOUNT THEY TOOK WITH THEM WHEN THEY QUIT YOUNG & RUBICAM INDEED FOR THE FIRST FULL YEAR RJ REYNOLDS INSISTED THAT MEZZINA/BROWN WORK ON NOTHING ELSE BUT THE CAMEL ACCOUNT SO JOHN MEZZINA AND BILL BROWN OBLIGINGLY SAT OUT NEWBUSINESS PITCHES AS THEY QUIETLY DEVISED FRESH ADS IN THE EYECATCHING AND CONTROVERSIAL JOE CAMEL CAMPAIGN NOW THE OBSCURE NEW YORK SHOP THAT MADE THE DAPPER DROMEDARY A UBIQUITOUS PRINT PRESENCE IS ABOUT TO LAUNCH ADS FOR ITS ONLY OTHER PAYING CLIENT OFFERING MADISON AVENUE A PEEK AT THE MICROAGENCY'S FIRST CREATIVE WORK OUTSIDE THE REALM OF TOBACCO THE CLIENT IS A FLEDGLING MICROBREWERY CALLED SPRING STREET BREWING CO AND THE BRAND IS WIT A WHEAT OR WHITE BEER THAT MAKES ITS DEBUT STARTING THIS WEEK IN NEW YORK THAT'S A FAR CRY FROM CAMEL WHOSE LARGESSE HAS LET MEZZINA/BROWN GROW FROM 16 EMPLOYEES AND A SINGLE TELEPHONE LINE INTO A 70PERSON SHOP WITH BILLINGS ESTIMATED AT 70 MILLION A YEAR BUT MEZZINA/BROWN HAS A LOT RIDING ON THE NEW CAMPAIGN'S SUCCESS THE AGENCY HELPED DEVISE THE WIT NAME ITS BRIGHT RED EXCLAMATION POINT LOGO AND THE NEW ADS AND THE SHOP ALSO OWNS 10 OF THE COMPANY IT TOOK THE STAKE IN LIEU OF COMMISSIONS WITH WIT'S MEDIA BUDGET SET AT A MERE 2 MILLION MICROSCOPIC COMPARED WITH THE SPENDING FOR A BUDWEISER OR MILLER LITE MEZZINA/BROWN WILL HAVE TO MAKE SOME MAGIC TO BUILD A BUZZ FOR WIT IN THE BIG APPLE BORROWING A PAGE FROM JOE CAMEL THE SHOP WILL USE A SPATE OF STRIKING PRINT ADS POSTERS AND WITLOGOED MERCHANDISE TO GIVE THE BRAND A STREET PRESENCE CONVENIENTLY SIDESTEPPING THE CLUTTER AND EXPENSE OF BROADCAST ADVERTISING THIS AMOUNTS TO THE MARKETING EQUIVALENT OF GRAFFITI SAYS JOHN MEZZINA CHAIRMAN AND EXECUTIVE CREATIVE DIRECTOR IT CREATES A CULT SENSE OF BELONGING A TORRENT OF WIT WARES INCLUDING TSHIRTS NECKTIES AND EVEN UMBRELLAS FOR CAFE TABLES MOVES INTO DISTRIBUTION THROUGH NEW YORK BARS AND RESTAURANTS THIS WEEK THE GIVEAWAYS MIMIC THE CAMEL CASH PROGRAM ONE OF MEZZINA/BROWN'S SMOOTH MOVES THAT KEPT THE AD CAMPAIGN FRESH BY ALLOWING CAMEL BUYERS TO USE C NOTES TOWARD CAMEL CLOTHES AND MERCHANDISE LIKE THE CAMEL EFFORT THE WIT PRINT ADS ARE BUILT AROUND A SINGLE STRIKING ELEMENT THE BIG RED LOGO ONE BEER HAS IT SAYS THE FIRST AD A TEASER THAT DOESN'T SHOW THE BEER BUT DISPLAYS JUST THE JAUNTY EXCLAMATION POINT THE SECOND ADDS A LINEDRAWN HAND HOLDING A BOTTLE OF WIT WITH THE EXCLAMATION POINT SPURTING OUT THE THIRD EXECUTION TURNS THE PUNCTUATION MARK INTO A PILSENER GLASS AND ADDS THE TAGLINE WIT IT'S ALL IN THE HEAD SPRING STREET IS TAKING THE UNUSUAL STEP OF LAUNCHING THE BEER IN MANHATTAN AND IN THE HAMPTONS ON LONG ISLAND WHERE AFFLUENT NEW YORKERS SLAVISHLY MIGRATE EACH WEEKEND THE PRINT ADS ARE RUNNING IN HAMPTONS MAGAZINE ALTHOUGH SOME 300 RESTAURANTS IN MANHATTAN AND LONG ISLAND ARE CARRYING THE BEER SPRING STREET BREWING HAS BEEN HUDDLING WITH MEZZINA/BROWN SINCE LAST OCTOBER OVER ITS ENTRY INTO THE THE EXPLODING MICROBREW SEGMENT SALES OF MICROBREWS LIMITEDPRODUCTION BEERS WITH LOYAL FOLLOWINGS AND QUIRKY HISTORIC NAMES LIKE ANCHOR STEAM PETE'S WICKED ALE AND NEW AMSTERDAM GREW MORE THAN 30 LAST YEAR TO MORE THAN 300 MILLION AT RETAIL ACCORDING TO THE IMPACT DATABANK OF M SHANKEN COMMUNICATIONS THE OVERALL BEER CATEGORY BY CONTRAST WAS UTTERLY FLAT WITH VOLUME GROWTH OF 02 ACCORDING TO BEER MARKETER'S INSIGHTS NEWSLETTER SO FAR THE CLEAREST BENEFICIARY OF CONSUMERS' GROWING TASTE FOR MICROBREWS IS BOSTON BEER CO WHOSE SAMUEL ADAMS BRAND IS PRODUCED UNDER CONTRACT BY G HEILEMAN BREWING WITH ESTIMATED RETAIL SALES OF MORE THAN 100 MILLION AND SALES GROWTH OF MORE THAN 60 MOST ANALYSTS DON'T EVEN CONSIDER SAM ADAMS A MICROBREW BUT ITS SUCCESS HAS PROVEN TO THE INDUSTRY THAT AN AMERICAN BEER WITH THE RIGHT TASTE AND IMAGE CAN COMMAND TOP DOLLAR AT RETAIL WIT IS BREWED UNDER CONTRACT TO SPRING STREET BY MINNESOTA BREWING CO ACCORDING TO A RECIPE FOR BELGIAN WHEAT BEER OR VIT BEER WHICH IS ENJOYING A SALES SURGE IN BRUSSELS AND AMSTERDAM SAYS ANDREW D KLEIN PRESIDENT OF SPRING STREET BREWING THE BEER'S COLOR AND TASTE ARE LIGHTER THAN OTHER MICROBREWS HE SAYS A SLIGHT CITRUS TASTE COMES FROM UNUSUAL INGREDIENTS SUCH AS ORANGE PEEL AND CORIANDER THE SLIGHTLY FRUITY TASTE GIVES THE BRAND GREAT POTENTIAL APPEAL TO WOMEN MR MEZZINA FIGURES AN AUDIENCE OTHER MICROBREWS ARE MORE OR LESS IGNORING IN A RADIO AD FOR SAMUEL ADAMS FOR EXAMPLE JAMES KOCH PRESIDENT OF BOSTON BEER TALKS ABOUT THE FRESHNESS DATE STAMPED ON THE BEER BOTTLES AT THE BREWERY MAYBE OTHER BEER COMMERCIALS WANT YOU TO THINK THAT IF YOU DRINK THEIR BEER YOU'LL GET LUCKY MR KOCH SAYS BUT I CAN GUARANTEE WITH SAMUEL ADAMS YOU'LL ALWAYS GET A DATE THOSE ADS ARE CREATED BY BOSTON SHOP GEARON HOFFMAN CONLON & NYE BUT DOES THE WORLD REALLY NEED ANOTHER MICROBREW THE MAKERS OF SAMUEL ADAMS ARE DUBIOUS ABOUT THE COMPETITION FROM WIT ESPECIALLY GIVEN THE NEWCOMER'S EMPHASIS ON LIGHTNESS I THINK THE MICROBREWERY DRINKER HAS TURNED AWAY FROM THE LIGHTER BEERS IN ORDER TO ENJOY A HEARTIER TASTE SAYS BOSTON BEER'S PRESIDENT MR KOCH IF BEER DRINKERS WANT A LIGHTER BEER THAN SAMUEL ADAMS THEY'VE GOT GREAT CHOICES FROM THE MAJOR BREWERS BUT MR KLEIN SPRING STREET'S PRESIDENT COUNTERS PEOPLE LIKE TO HOLD A BOTTLE OF SAM ADAMS BUT THEY DON'T LIKE THE WAY IT TASTES IF ALL GOES WELL IN NEW YORK WIT WILL ROLL OUT IN OTHER MARKETS PERHAPS IN LOS ANGELES AS SOON AS SEPTEMBER A RADIO CAMPAIGN AS YET UNWRITTEN WOULD BE THE NEXT STEP IN THE EFFORT FURTHER RAISING THE PROFILES OF THE MICROBREW AND ITS MICROAGENCY THAT MIGHT HELP MEZZINA/BROWN IN ITS BID TO GROW ITS WAY INTO THE MIDSIZE RANKS AND ADD SUCH LARGESCALE SERVICES AS BROADCAST MEDIA BUYING THE SHOP HAS BEEN PITCHING TWO NEW PROSPECTS HOPING TO LINE UP ITS THIRD PAYING CLIENT SAYS MR MEZZINA WE FULLY INTEND TO BECOME A FULLSERVICE AGENCY AUDI OF AMERICA NARROWED THE FIELD OF AGENCIES COMPETING FOR ITS ESTIMATED 30 MILLION ACCOUNT TO THREE AGENCIES AMMIRATI & PURIS NEW YORK HILL HOLLIDAY CONNORS COSMOPULOS BOSTON AND CARMICHAEL LYNCH MINNEAPOLIS TWO OF THE THREE FINALISTS ARE VETERANS OF AUTOMOTIVE ADVERTISING HAVING BEEN RECENTLY DISLODGED FROM HIGHPROFILE CAR ACCOUNTS AMMIRATI WAS ABRUPTLY DROPPED AS BMW'S AD AGENCY LAST OCTOBER AFTER REFUSING TO TAKE PART IN A CREATIVE REVIEW OF OTHER AGENCIES' WORK AND HILL HOLLIDAY GOT THE BOOT FROM NISSAN MOTOR'S INFINITI ACCOUNT IN OCTOBER IN AN AGENCY CONSOLIDATION CARMICHAEL LYNCH IS SOMETHING OF A WILD CARD WITH NO CAR EXPERIENCE BUT A REPUTATION FOR EYECATCHING CREATIVE WORK FOR CLIENTS THAT INCLUDE HARLEYDAVIDSON MOTORCYCLES AUDI PUT ITS ACCOUNT UP FOR GRABS IN MARCH AFTER FIRING ITS LONGSTANDING AGENCY OMNICOM GROUP'S DDB NEEDHAM AUDI A UNIT OF VOLKSWAGEN AG SAID IT WILL MAKE A DECISION BY MIDSUMMER BASED ON STRATEGIC PRESENTATIONS ACCOUNT TIMES MIRROR CABLE TELEVISION A UNIT OF TIMES MIRROR CO TAPPED GREY ADVERTISING'S GREY ENTERTAINMENT & MEDIA SANTA MONICA CALIF FOR ITS 45 MILLION ADVERTISING AND PROMOTION ACCOUNT THE ACCOUNT WAS AT SALVATI MONTGOMERY SAKODA OF COSTA MESA CALIF TIMES MIRROR CABLE IS A CABLESYSTEM OPERATOR THAT MARKETS SERVICES UNDER THE NAME DIMENSIONS CABLE SERVICES WHO'S NEWS AL MERRIN 47 AND MICHAEL PATTI 40 SENIOR CREATIVE DIRECTORS AT OMNICOM GROUP'S BBDO WERE NAMED EXECUTIVE CREATIVE DIRECTORS OVERSEEING WORK FOR CLIENTS THAT INCLUDE GENERAL ELECTRIC GILLETTE PEPSICOLA AND DUPONT THEIR APPOINTMENTS ARE PART OF A RESTRUCTURING FOLLOWING THE APPOINTMENT LAST WEEK OF TED SANN TO CHIEF CREATIVE OFFICER OF THE NEW YORK OFFICE MESSRS MERRIN AND PATTI REMAIN EXECUTIVE VICE PRESIDENTS 9305240046 930524 FOREIGN EXCHANGE ECONOMISTS WARN DOLLAR IS VULNERABLE TO SETBACKS IN WAKE OF US TRADE DATA BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFTER SETTLING BRIEFLY INTO A TRADING RANGE AGAINST THE YEN THE DOLLAR AGAIN APPEARS VULNERABLE TO SPECULATION THIS WEEK ALTHOUGH ECONOMISTS SAY THE JAPANESE CURRENCY IS ALREADY OVERVALUED LAST WEEK'S TRADE DATA REVIVED TALK OF CLINTON ADMINISTRATION EFFORTS TO WIELD A STRONG YEN AGAINST JAPAN'S TRADE SURPLUS AND IF THOSE EFFORTS ARE SUCCESSFUL SOME ECONOMISTS SAY FOREIGN DISINVESTMENT COULD DRIVE THE DOLLAR LOWER THAN MANY EXPECT INTEREST IN THE YEN RESURFACED LATE LAST WEEK WHEN THE DOLLAR SANK BRIEFLY BELOW THE 110YEN LEVEL FOR THE FIRST TIME SINCE EARLY MAY LATE FRIDAY IN NEW YORK THE DOLLAR FINISHED AT 11030 YEN COMPARED WITH 11065 YEN LATE THURSDAY AND 11080 YEN AT THE END OF THE PREVIOUS WEEK THE DOLLAR ALSO WAS QUOTED AT 16253 MARKS UP FROM 16172 MARKS LATE THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 11043 YEN AND AT 16271 MARKS WEDNESDAY'S TRADE FIGURES PROMPTED THE LATEST FLURRY OF INTEREST IN THE YEN TRADERS SAY THE DOLLAR ENDED THE DAY ALMOST ONE YEN LOWER ON NEWS THAT THE US TRADE GAP WIDENED MORE SHARPLY THAN ANALYSTS HAD EXPECTED THE WIDENING DEFICIT HIGHLIGHTS THE SHORTCOMINGS OF A WEAKDOLLAR POLICY ECONOMISTS SAY FROM MARCH 1992 TO MARCH 1993 THE DEFICIT WITH JAPAN ROSE FROM 407 BILLION TO 526 BILLION DESPITE A 13 DECLINE IN THE DOLLAR AGAINST THE YEN ECONOMIC CYCLE IMPACT ALTHOUGH EXCHANGE RATES AFFECT TRADE FLOWS ECONOMIC CYCLES HAVE A MORE POWERFUL IMPACT THEY SAY THE DIFFERENCE IN RATES OF GROWTH IS SO PRONOUNCED WITH THE US ECONOMY FITFULLY ACCELERATING WHILE THE JAPANESE ECONOMY IS COLLAPSING SAYS PAUL BOLTZ FINANCIAL ECONOMIST AT T ROWE PRICE ASSOCIATES THEIR DEMAND FOR OUR GOODS IS WEAKENING WHILE OUR DEMAND FOR THEIR GOODS IS STRENGTHENING WHATEVER THE IMPACT OF A STRONGER YEN US EXPORTERS HAVEN'T FELT IT YET THE STRENGTH OF THE YEN HAS A LAG EFFECT SAYS SANDY BATTEN SENIOR ECONOMIST AT CITIBANK IF YEN APPRECIATION PERSISTS WE'LL START SEEING THAT SIX TO NINE MONTHS DOWN THE ROAD BY THEN ECONOMIC RECOVERY IN BOTH COUNTRIES SHOULD ALSO EASE PRESSURE ON THE DOLLAR HE SAYS RICHER JAPANESE WILL BE ABLE TO BUY MORE IMPORTS WHILE AMERICANS MORE SECURE IN THEIR JOBS WILL COMPLAIN LESS VEHEMENTLY ABOUT FOREIGN COMPETITION WITH TRADE PRESSURES LIFTED THE DOLLAR SHOULD REBOUND TO THE 120YEN TO 125YEN RANGE MR BATTEN PREDICTS WHERE ECONOMIC FUNDAMENTALS SAY IT SHOULD BE BUT AS LONG AS THE CLINTON TEAM IS PERCEIVED AS USING EXCHANGE RATES AS A WEAPON IN TRADE NEGOTIATIONS THE DOLLAR WILL KEEP SINKING MARKET PLAYERS SAY WEDNESDAY'S DECLINE IN THE DOLLAR FOR EXAMPLE HAD AS MUCH TO DO WITH REMARKS BY COMMERCE SECRETARY RON BROWN ENDORSING YEN APPRECIATION AS WITH THE TRADE FIGURES THEMSELVES TRADERS SAID THE US CURRENCY BOUNCED BACK WHEN A COMMERCE DEPARTMENT SPOKESMAN SAID THE US HAS NO FORMAL POLICY ON THE YEN ALTHOUGH THE APPARENT CONTRADICTION BETWEEN THE STATEMENTS BY THE COMMERCE SECRETARY AND HIS DEPARTMENT'S SPOKESMAN LEFT MARKET PLAYERS UNCLEAR ABOUT POLICY MANY STILL SEE PRESSURE FOR A HIGHER YEN THAT MAY COME NOT ONLY FROM THE US BUT FROM EUROPEAN GOVERNMENTS AS WELL WHICH HAVE ALSO BEEN SEEN AS FAVORING A STRONG YEN TO BATTLE THEIR OWN TRADE DEFICITS WITH JAPAN THAT COULD DRIVE THE DOLLAR LOWER THAN MANY PLAYERS MAY EXPECT WARNS MR BOLTZ OF T ROWE PRICE DOLLARDENOMINATED ASSETS THE JAPANESE THROUGH TRADE ACCUMULATE ENORMOUS AMOUNTS OF DOLLARS THEY CAN BUY DOLLARDENOMINATED ASSETS OR THEY CAN DUMP THEM IN THE FOREIGN EXCHANGE MARKETS AND RAM THE DOLLAR DOWN INTO QUEASY TERRITORY HE SAYS IF THEY CHOOSE NOT TO INVEST BECAUSE OF THE FEAR THAT THEIR DOLLAR INVESTMENTS WILL DEPRECIATE TO OBLIVION YOU COULD HAVE SERIOUS PROBLEMS IN THE FOREIGN EXCHANGE MARKETS FOR NOW CURRENCY PLAYERS DON'T EXPECT SHARP MOVES IN THE DOLLAR PEOPLE THINK A FAIR PART OF THE MOVE IS OVER SAYS LAWRENCE WEINMAN OPTIONS SALES MANAGER AT SOCIETE GENERALE YEN OPTIONS ARE LESS EXPENSIVE THAN WHEN THE DOLLAR HIT HISTORIC LOWS IN APRIL HE NOTES PRICES OF CURRENCY OPTIONS RISE WHEN INVESTORS BELIEVE THEY NEED PROTECTION FROM SHARP MOVES IN EXCHANGE RATES MEASURED IN THE IMPLIED VOLATILITY OF OPTIONS JARGON YEN OPTIONS WERE TRADING AROUND 9 ON FRIDAY DOWN FROM MORE THAN 11 LAST MONTH BUT STILL MORE EXPENSIVE THAN THE 8 THAT PREVAILED BEFORE THE DOLLAR BEGAN ITS PLUNGE EARLY THIS YEAR 9305240045 930524 STOCKS' GYRATIONS LEAVE BULLS BEARS EXHAUSTED ABREAST OF THE MARKET INDEXES MASK THE DIVERGENCE AMONG ISSUES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BULL OR BEAR LIFE IN THE STOCK MARKET ISN'T EASY THESE DAYS NORMALLY OPTIMISTIC BULLS HAVE TO WORRY ABOUT SUDDEN PLUNGES LIKE THE ONE THAT SWEPT THE DOW JONES INDUSTRIAL AVERAGE DOWN 3045 POINTS FRIDAY GLOOMY BEARS ARE CONFRONTED BY THE POSSIBILITY OF A SUDDEN RALLY LIKE THE ONE THAT LIFTED THE INDUSTRIAL AVERAGE 55 POINTS EARLIER IN THE WEEK IN ANY CASE BOTH CAMPS AGREE THAT KEEPING UP WITH THE MARKET'S MANIC MOOD SHIFTS IS EXHAUSTING BUT PERHAPS THE BIGGEST LESSON THAT MANY ANALYSTS DRAW FROM LAST WEEK'S STARTLING SHIFTS IN INVESTOR SENTIMENT IS THE FUTILITY OF TRYING TO TIME THE MARKET THEY ARGUE THAT THE BULL MARKET IS STILL INTACT AND THE BEST STRATEGY IS TO BE INVESTED AND JUST HOLD ON TIGHT THROUGH THE UPS AND DOWNS THE SUDDEN MOVES LAST WEEK THAT ENDED WITH THE DOW JONES INDUSTRIALS UP NEARLY 50 POINTS FOR THE WEEK ARE AN EXAMPLE OF WHY YOU WANT TO BE IN THE MARKET COUNSELS SANDRA K SHREWSBURY COMANAGER OF PIPER JAFFRAY'S EMERGING GROWTH FUND PEOPLE ON THE SIDELINES MISSED A TREMENDOUS MOVE MS SHREWSBURY CONCEDES THAT IT ISN'T EASY TO BE CONFIDENT ABOUT THE STOCK MARKET AND SHE WORRIES THAT INVESTORS ARE BECOMING SO FRUSTRATED BY THE VOLATILITY IN THE MARKET THAT THEY FIND IT TEMPTING TO BE TIMERS PARTICULARLY IRRITATING SHE SAYS IS THAT THE INDEXES BY WHICH MOST PEOPLE MEASURE STOCK PERFORMANCE MASK GREAT DIVERGENCES AMONG INDIVIDUAL STOCKS INDEED THE DOW JONES INDUSTRIAL AVERAGE IS UP 58 SO FAR THIS YEAR STANDARD & POOR'S 500STOCK INDEX HAS GAINED 23 AND THE NASDAQ COMPOSITE INDEX IS UP 26 YET A PIPER JAFFRAY STUDY SHOWS THAT 34 OF SOME 13000 LISTED AND OVERTHECOUNTER STOCKS ARE DOWN 20 OR MORE SO FAR THIS YEAR AT THE SAME TIME 53 OF THE 13000 STOCKS HAVE GAINED 20 OR MORE THESE NUMBERS SHOW THE MARKET'S SHARP VOLATILITY AND THE IMPORTANCE OF BEING DIVERSIFIED MS SHREWSBURY SAYS MORE FRUSTRATION THOSE WHO TRY TO CATCH RALLIES AND AVOID CORRECTIONS USUALLY WIND UP EVEN MORE FRUSTRATED SHE ADDS SHE POINTS OUT THAT MANY INVESTORS THREW IN THE TOWEL IN 1974 WHEN STOCKS SLID 265 BUT THE NEXT YEAR PRICES CLIMBED 372 THOUGH MS SHREWSBURY DOESN'T EXPECT STOCKS TO BE THE STELLAR PERFORMERS THEY WERE IN THE 1980S SHE STILL SEES STRONG STEADY GAINS AHEAD INDEED SHE PREDICTS STOCKS WILL CONTINUE TO RETURN ABOUT 10 A YEAR WHICH IS THE AVERAGE RETURN FROM 1925 TO 1992 OTHER ANALYSTS AGREE THAT THE INDEXES DON'T TELL THE WHOLE STORY IT'S DIFFICULT FOR ME AS AN INVESTOR TO RECONCILE MY OWN PERSONAL EXPERIENCE WITH THE PERFORMANCE OF THE INDEXES SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP THE TWO DON'T SEEM TO MATCH FOR INSTANCE MR JOHNSON POINTS TO THE S&P HIGH TECHNOLOGY COMPOSITE INDEX IT CLIMBED 38 FROM OCTOBER 1990 TO MARCH OF THIS YEAR PRETTY MUCH TRACKING THE S&P 500 WHICH GAINED 46 BUT THAT ADVANCE MASKS SOME SHARP DISPARITIES IN THE PERFORMANCE OF COMPONENT INDUSTRY GROUPS AN INVESTOR IN SEMICONDUCTORS PROSPERED AS THAT GROUP SOARED 188 DURING THE PERIOD BUT SOMEONE HOLDING MOSTLY COMPUTER STOCKS INCLUDING INTERNATIONAL BUSINESS MACHINES WAS BATTERED AS THAT GROUP PLUNGED 36 INDEXES ENABLE US TO MAKE SWEEPING STATEMENTS ABOUT THE MARKET AND THEY'RE CONVENIENT FOR PURPOSES OF COMMUNICATION SAYS MR JOHNSON BUT UNFORTUNATELY THEY DISTANCE US FROM WHAT'S TRUE AND USEFUL LAST WEEK'S SHARP SWINGS SUGGESTED THAT MORE VOLATILITY LIES AHEAD ALFRED GOLDMAN DIRECTOR OF MARKET ANALYSIS AT AG EDWARDS & SONS IN ST LOUIS HAD EXPECTED STOCK PRICES TO MOVE GRADUALLY HIGHER THROUGH THE SUMMER BASED ON RISING PESSIMISM AMONG INVESTORS AND LOTS OF CASH ON THE SIDELINES INCREASED PESSIMISM SUGGESTS THAT INVESTORS HAVE SOLD A LOT OF STOCK AND MAY BE READY TO START BUYING AGAIN BUT WEDNESDAY'S SHARP UPSWING FOLLOWED BY FRIDAY'S SELLOFF SUGGESTS THE MARKET'S MOVEMENTS MAY BE SWIFTER THAN HE FIRST EXPECTED MR GOLDMAN STICKS BY HIS PREDICTION THAT THE DOW JONES INDUSTRIALS WILL CLIMB TO 3650 BEFORE A CORRECTION SETS IN BUT HE'D PREFER TO SEE STOCK PRICES RISE GRADUALLY RATHER THAN IN THE KIND OF WILD TRADING SEEN LAST WEEK I WOULD HOPE THE MARKET WOULD GO UP LIKE THE ECONOMY IN STEADY FASHION HE SAYS DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST SECURITIES/BUTCHER & SINGER IN RICHMOND VA PREDICTS THE STAGE HAS BEEN SET FOR THE STOCK MARKET TO BLAST OFF THIS SUMMER HE ARGUES THAT INVESTOR SENTIMENT HAS TURNED GLOOMY ENOUGH TO CAUSE A TURNAROUND IN MOOD THAT SPARKS A BUYING SPREE HE WAS ENCOURAGED BY RECENT SURVEYS OF INVESTMENT ADVISERS BY INVESTORS INTELLIGENCE JUST BEFORE LAST WEEK'S BIG RALLY THAT SURVEY SHOWED THE NUMBER OF BULLS DROPPING TO 321 THE LOWEST LEVEL SINCE THE START OF THE BULL MARKET IN OCTOBER 1990 EVERY TIME WE'VE SEEN SUCH LOW READINGS WE'VE HAD A DRAMATIC RALLY IN THE BROAD MARKET THREE MONTHS LATER MR HAYS SAYS ALSO MR HAYS BELIEVES INTERESTRATE CONDITIONS REMAIN FAVORABLE FOR STOCK INVESTMENT WITH SHORTTERM RATES OF ABOUT 3 STILL LOW ENOUGH TO MAKE STOCKS MORE ATTRACTIVE THAN TREASURY BILLS IT'S NOT QUITE AS SCREAMINGLY POSITIVE AS IT WAS BUT IT'S STILL POSITIVE HE SAYS THE MARKET WON'T SUFFER UNTIL THE YIELD ON TREASURY BILLS MOVES UP TO 4 MR HAYS IS SO CONFIDENT THE BROADBASED STOCK MARKET CORRECTION WILL TURN INTO A DAZZLING RALLY THIS SUMMER HE IS PUTTING HIS OWN MONEY TO WORK IN A BIG WAY IN DECEMBER HE MOVED HIS ENTIRE AGGRESSIVE PORTFOLIO INTO CASH BUT TWO WEEKS AGO HE PUT 50 INTO STOCKS WITH PLANS TO BE FULLY INVESTED BY JULY 1 YOU'LL SEE ANOTHER PULLBACK SOMETIME BETWEEN NOW AND JULY 1 BUT AFTER THAT IT'S LIFTOFF WITH THE DOW INDUSTRIALS MOVING THROUGH 4000 BY MARCH OF NEXT YEAR MR HAYS SAID STOCKS SKIDDED ON RISING INTEREST RATES AND SELLING TIED TO MONTHLY OPTIONS EXPIRATIONS THE DOW JONES INDUSTRIAL AVERAGE PLUNGED AS MUCH AS 46 POINTS IN LATE TRADING BUT RECOVERED A BIT BEFORE THE CLOSE IT ENDED THE DAY DOWN 3045 POINTS TO 349283 STANDARD & POOR'S 500STOCK INDEX FELL 475 TO 44584 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SANK 215 TO 24627 DECLINING ISSUES OUTPACED ADVANCERS 1134 TO 797 TRADING ON THE BIG BOARD TOTALED 273246890 SHARES COMPARED WITH 279549530 SHARES THURSDAY WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 003 TO 10564 FOR THE WEEK THE DOW JONES INDUSTRIALS JUMPED NEARLY 50 POINTS OR 14 THE S&P 500 ROSE 63 POINTS OR 14 AND THE BIG BOARD COMPOSITE ADDED 29 POINTS OR 12 THE AMERICAN STOCK EXCHANGE'S MARKET VALUE INDEX ENDED AT A RECORD FOR A THIRD STRAIGHT DAY IT GAINED 057 OR 013 TO 43286 THAT MARKET HAS MANY GOLD MINING STOCKS WHICH WERE AMONG THE STRONGEST INDUSTRY GROUPS FRIDAY NEWMONT MINING JUMPED 2 1/2 TO 52 1/8 HECLA MINING ROSE 5/8 TO 13 3/4 PEGASUS GOLD INCREASED 1 TO 22 5/8 ECHO BAY MINES ADDED 3/8 TO 12 1/8 AND HOMESTAKE MINING CLIMBED 5/8 TO 18 STORAGE TECHNOLOGY SANK 3 1/4 TO 40 3/4 THE STOCK JUMPED 3 3/8 THURSDAY ON NEWS THE COMPANY WILL BEGIN SHIPPING ITS LONGDELAYED ICEBERG COMPUTERDATA STORAGE SYSTEM BY THE FOURTH QUARTER JAN BELL MARKETING SLIPPED 1 TO 16 THE SUNRISE FLA JEWELRY CONCERN REPORTED A FIRSTQUARTER LOSS OF 102 MILLION OR 40 CENTS A SHARE AFTER TAKING AN 181 MILLION CHARGE TIED TO A RESTRUCTURING OF ITS BUSINESS A YEAR EARLIER JAN BELL HAD PROFIT OF 14 MILLION OR SIX CENTS A SHARE DISCOUNT CORP OF NEW YORK JUMPED 2 TO 7 1/4 AFTER THE NEW YORK BOND TRADING CONCERN AGREED TO BE ACQUIRED BY ZIONS BANCORP FOR 8 A SHARE OR 65 MILLION SHARES OF SALT LAKE CITYBASED ZIONS ADVANCED 1 3/4 TO 41 3/4 IN OVERTHECOUNTER TRADING BIRMINGHAM STEEL DROPPED 2 1/8 TO 24 3/4 AFTER GOLDMAN SACHS REMOVED THE STOCK FROM ITS RECOMMENDED LIST GOLDMAN TRIMMED ITS FOURTHQUARTER EARNINGS ESTIMATE ON THE BIRMINGHAM ALA STEEL PRODUCER TO 20 CENTS A SHARE FROM A FORECAST OF 28 CENTS WALMART SLUMPED 1 1/8 TO 27 3/8 THE WALL STREET JOURNAL REPORTED THAT THE BENTONVILLE ARK RETAILER IS BOWING TO PRICING COMPETITION AND BACKING AWAY FROM ITS LONGSTANDING SLOGAN ALWAYS THE LOW PRICE AND TOWARD A MORE MODERATE ALWAYS LOW PRICES SEE RELATED STORY HEARD ON THE STREET PROGRAM TRADES SOAR PROVOKING LITTLE OUTCRY WSJ MAY 24 1993 9305240044 930524 GM VW TRADE CHARGES OF STOLEN DATA LIBEL AS THE SPAT OVER LOPEZ INTENSIFIES BY TIMOTHY AEPPEL AND PAUL INGRASSIA STAFF REPORTERS OF THE WALL STREET JOURNAL THE SPITTING MATCH BETWEEN GENERAL MOTORS CORP AND VOLKSWAGEN AG OVER FORMER GM PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA IS TURNING INTO A GLOVESOFF LEGAL BATTLE WITH CHARGES OF STOLEN DOCUMENTS COUNTERED BY ACCUSATIONS OF LIBEL AND OTHER WRONGDOING GM ALLEGES THAT MR LOPEZ WITH THE HELP OF A GROUP OF FORMER GM AND ADAM OPEL AG MANAGERS HE TOOK WITH HIM TO VW ABSCONDED WITH HOARDS OF CONFIDENTIAL DOCUMENTS WHEN THEY JUMPED SHIP IN MARCH ADAM OPEL IS GM'S HIGHLY SUCCESSFUL GERMANBASED SUBSIDIARY THE US CAR MAKER SAID FRIDAY IT HAS ASKED PROSECUTORS IN GERMANY TO BRING CRIMINAL CHARGES AGAINST THE MEN GM HAS EXECUTED A LEGAL COMPLAINT IN GERMANY FOR WHAT WE BELIEVE IS THE TAKING OF CONFIDENTIAL DOCUMENTS LOUIS R HUGHES GM'S EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS SAID AT A NEWS CONFERENCE AFTER THE COMPANY'S ANNUAL MEETING WHETHER AND HOW TO PURSUE THE CHARGES IS UP TO GERMAN PROSECUTORS HE ADDED VW VEHEMENTLY DENIED THE CHARGES AND RESPONDED OVER THE WEEKEND BY ISSUING SOME STERN ACCUSATIONS OF ITS OWN THEY'RE ATTEMPTING TO SYSTEMATICALLY DESTROY THE REPUTATION OF MR LOPEZ AND HIS TEAM SAID OTTO WACHS VW'S TOP SPOKESMAN AND WE'RE NOT GOING TO STAND FOR IT MR WACHS SAID MR LOPEZ AND HIS COLLEAGUES HAVE LODGED A CIVIL COMPLAINT AGAINST THEIR FORMER EMPLOYER IN A GERMAN LABOR COURT ACCUSING GM OF LIBEL AND OF ATTEMPTING TO UNDERMINE THEIR ABILITY TO WORK IN THEIR FIELD GM PREVIOUSLY ASKED A GERMAN COURT FOR AN INJUNCTION FORBIDDING THE MANAGERS MR LOPEZ BROUGHT WITH HIM TO VW FROM WORKING AT THE COMPANY FOR ONE YEAR THESE MEN FEEL PERSONALLY ATTACKED SAID MR WACHS ADDING THAT THE CASE COULD ALSO HAVE NEGATIVE REPERCUSSIONS FOR THE IMAGE OF VOLKSWAGEN SOME SEE THE DISPUTE AS A CLASSIC EXAMPLE OF THE INCREASINGLY BAREFISTED TACTICS EUROPEAN CAR MAKERS ARE USING IN THE FACE OF GROWING COMPETITIVE PRESSURE THE NEXT FEW YEARS WILL DETERMINE WHO LIVES AND WHO DIES IN THE EUROPEAN AUTO INDUSTRY SAID KARL LUDVIGSEN AN INDUSTRY CONSULTANT BASED IN LONDON SO WE'RE GOING TO SEE MORE TOUGH BATTLES LIKE THIS IN THE FUTURE BUT PERHAPS NOT ONE IN WHICH THE PERSONAL EMOTIONS RUN SO HIGH FROM THE MID1980S UNTIL HE LEFT GM MR LOPEZ A NATIVE OF THE BASQUE REGION OF SPAIN WAS A CLOSE ASSOCIATE AND PROTEGE OF JOHN F SMITH JR GM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER THE TWO MEN WERE KEY FIGURES IN TURNING AROUND GM'S ONCEAILING EUROPEAN UNIT AFTER BECOMING GM'S PRESIDENT IN APRIL 1992 MR SMITH PUT MR LOPEZ A FLAMBOYANT MAN WHO ADVOCATED A STRICT HEALTHFOOD DIET AND TORE UP SUPPLIER CONTRACTS TO DEMAND PRICE CUTS IN CHARGE OF GM'S PURCHASING WORLDWIDE AND MR SMITH WAS READY TO NAME MR LOPEZ HEAD OF GM'S NORTH AMERICAN OPERATIONS THE COMPANY'S CORE BUSINESS TO KEEP HIM FROM JUMPING TO VW MR LOPEZ SAID HE WOULD STAY ONLY TO LITERALLY WALK OUT ON GM JUST TWO HOURS BEFORE HIS PROMOTION WAS TO BE ANNOUNCED BUT NOW MR SMITH CLEARLY FEELS BETRAYED AS WELL AS ANGERED BY THE TURN OF EVENTS ASKED AT FRIDAY'S NEWS CONFERENCE HOW HE FELT ABOUT THE MATTER MR SMITH REPLIED IT'S A TRAGEDY ACCORDING TO MR WACHS THE VW SPOKESMAN MR LOPEZ WROTE TO GM IN APRIL SAYING HE HAD NOT TAKEN ANY PROPRIETARY INFORMATION WHEN HE LEFT GM AND HAS NONE IN HIS POSSESSION NOW BUT OPEL IN A STATEMENT RELEASED FROM ITS HEADQUARTERS IN RUESSELSHEIM GERMANY SAID IT HAD REPEATEDLY ASKED MR LOPEZ AND THE OTHER FORMER MANAGERS TO STATE THAT THEY HAD NOT TAKEN ANY CONFIDENTIAL MATERIAL TO VW THESE REQUESTS HAVE NOT BEEN ANSWERED TO OUR SATISFACTION OPEL'S STATEMENT SAID IN THE MEANTIME MR WACHS'S FEARS OF NEGATIVE PUBLICITY FOR VW ARE ALREADY BEING REALIZED THIS WEEK'S EDITION OF DER SPIEGEL GERMANY'S LEADING NEWS WEEKLY HAS A COVER STORY ON MR LOPEZ AND GM'S ALLEGATIONS AGAINST HIM ENTITLED THE UNSCRUPULOUS ONE THE MAGAZINE CLAIMS MR LOPEZ AND HIS CREW ARE SUSPECTED OF SPIRITING AWAY 10000 DOCUMENTS INCLUDING SECRET CONSTRUCTION PLANS INTERNAL COST CALCULATIONS AND PURCHASING LISTS FOR ALL 60000 PARTS USED BY OPEL AS WELL AS DETAILS OF ENGINE AND MODEL POLICIES TO THE YEAR 2003 THE MAGAZINE CITING UNNAMED SOURCES CONTENDS MR LOPEZ LAUNCHED HIS INFORMATIONGATHERING CAMPAIGN AS EARLY AS NOVEMBER 1992 AND COORDINATED THE OPERATION WITH VW'S TOP MANAGEMENT OFFICIALS AT THE PROSECUTORS' OFFICE IN DARMSTADT WHERE GM FILED ITS COMPLAINT COULDN'T BE REACHED OVER THE WEEKEND FOR A COMMENT AND VW SAID IT HASN'T YET BEEN INFORMED OF THE SUBSTANCE OF THE CHARGES BUT THE NEXT MOVE IN THIS INCREASINGLY NASTY CORPORATE SPAT MAY COME FROM MR LOPEZ HIMSELF VW OFFICIALS CONFIRMED SUNDAY THAT MR LOPEZ IS CONTEMPLATING HOLDING A NEWS CONFERENCE IN JUNE TO SPECIFICALLY DENY THE CHARGES HE WANTS TO SPEAK OUT SAID A VW OFFICIAL 9305240043 930524 TREASURY SET TO RAISE 450 MILLION AT BILL SALE WASHINGTON THE TREASURY PLANS TO RAISE 450 MILLION IN NEW CASH WITH THE SALE THURSDAY OF ABOUT 1475 BILLION OF 52WEEK BILLS TO REDEEM 1430 BILLION IN MATURING BILLS THE CUSIP NUMBER FOR THE BILLS IS 912794K86 THE BILLS WILL BE DATED JUNE 3 AND WILL MATURE JUNE 2 1994 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM 9305240042 930524 STATES AND CITIES ARE SEEKING EXEMPTION FROM PRESIDENT'S PROPOSED ENERGY TAX BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT TOOK AWHILE BUT STATE AND LOCAL GOVERNMENTS HAVE FINALLY REALIZED THAT THEY WOULD BE FORCED TO PAY MUCH HIGHER TAXES UNDER PRESIDENT CLINTON'S PROPOSED ENERGY TAX THEY ARE UPSET SO NOW A MOVEMENT IS UNDER WAY TO PERSUADE THE PRESIDENT AND CONGRESS TO EXEMPT STATE AND LOCAL JURISDICTIONS FROM THE LEVY BUT AN EXEMPTION WOULD BE COSTLY TO THE FEDERAL GOVERNMENT THE CONGRESSIONAL JOINT COMMITTEE ON TAXATION ESTIMATES THAT IT WOULD REDUCE EXPECTED ENERGY TAX RECEIPTS BY 95 BILLION OVER THE NEXT FIVE YEARS OR ABOUT 135 OF THE ANTICIPATED REVENUES STILL STATE AND LOCAL LEADERS WANT THEIR EXCLUSION AN ENERGY TAX WOULD HAVE A SIGNIFICANT BUDGET IMPACT IT WOULD FORCE STATE AND LOCAL GOVERNMENTS TO EITHER CUT PUBLIC SERVICES OR INCREASE OTHER TAXES TO PAY THE FEDERAL TAXES SAID LEADERS OF THE NATIONAL GOVERNORS ASSOCIATION THE US CONFERENCE OF MAYORS AND OTHER ORGANIZATIONS IN A MAY 7 LETTER TO HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL THIS OUTBURST IS UNUSUAL MAYORS AND GOVERNORS HAVE BEEN PARTICULARLY SUPPORTIVE OF PRESIDENT CLINTON A FORMER GOVERNOR WHO HIMSELF HAS COMPLAINED ABOUT THE FEDERAL GOVERNMENT'S SEEMING INABILITY TO UNDERSTAND THE FISCAL PLIGHT OF STATE AND LOCAL GOVERNMENTS THE STATE AND LOCAL OFFICIALS ALSO HAVE BEEN UPLIFTED BY MR CLINTON'S INTEREST IN EDUCATION AND HIS PLEDGE TO FIGHT CRIME AND VIOLENCE IN CITY STREETS THE WHITE HOUSE IS RESISTING THE CALLS FOR AN EXEMPTION THOUGH THERE ARE GOING TO BE PIECES OF THIS PLAN THAT DIFFERENT PEOPLE WILL DISAGREE WITH BUT YOU HAVE TO LOOK AT THIS PLAN AS A WHOLE SAID JEFF WATSON MR CLINTON'S DEPUTY ASSISTANT FOR INTERGOVERNMENTAL AFFAIRS STATE AND LOCAL GOVERNMENTS HAVE TO DO THAT LIKE EVERYONE ELSE MR WATSON SAID THAT EVEN THOUGH STATE AND LOCAL GOVERNMENTS MAY BE FORCED TO PAY MORE TAXES THEY ALSO WILL REAP THE REWARDS OF INFRASTRUCTURE INVESTMENT AND THINGS THAT ARE GOOD FOR THE CITY THE COMPLAINT FROM CITIES AND STATES COMES AMID INCREASING ATTACKS ON THE ENERGY TAX MOST RECENTLY FROM FOUR SENATORS WHO LAST WEEK OFFERED A PLAN THAT WOULD SUBSTITUTE SPENDING CUTS FOR THE TAX WITH THE PRESIDENT ON THE DEFENSIVE SOME OF THOSE WHO HAVE PETITIONED CONGRESS FOR AN EXEMPTION FROM THE ENERGY TAX ARE RELUCTANT TO TALK PUBLICLY ABOUT THEIR COMPLAINT STILL THE STATE AND LOCAL LEADERS SAY AN ENERGY TAX WOULD TAKE SOME MUCHNEEDED FUNDS FROM SCHOOLS HOSPITALS AND POLICE FIRE AND RESCUE AGENCIES THAT USE A LOT OF ENERGY SO INSTEAD OF MORE RESOURCES TO FIGHT CRIME WE'LL HAVE LESS SAID FRANK SHAFROTH DIRECTOR OF POLICY AND FEDERAL RELATIONS FOR THE NATIONAL LEAGUE OF CITIES CITIES WOULD BE HURT HARDER THAN STATE GOVERNMENTS BY THE PROPOSED TAX STATE AND LOCAL LEADERS AGREE MINNEAPOLIS PAYS 3 MILLION A YEAR ON ELECTRICITY FOR STREET LIGHTS ALONE CITIES THAT'S WHERE THE WORST OF IT WILL BE BORN MR SHAFROTH SAID THERE IS PRECEDENT FOR THE EXCLUSION THE MAYORS AND GOVERNORS ARE SEEKING UNDER CURRENT LAW STATES AND LOCALITIES ARE EXEMPT FROM OTHER EXCISE TAXES SUCH AS THE FEDERAL GASOLINE AND DIESEL TAXES BUT BECAUSE AN EXEMPTION WOULD BE SO COSTLY IT'S UNCLEAR WHETHER THE GROUPS WILL SUCCEED THEY ARE SCHEDULED TO MEET TOMORROW WITH ROBERT RUBIN HEAD OF THE WHITE HOUSE NATIONAL ECONOMIC COUNCIL ACCORDING TO MR SHAFROTH 9305240040 930524 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 7/8 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 304 30 TO 59 DAYS 307 60 TO 89 DAYS 309 90 TO 149 DAYS 315 150 TO 179 DAYS 317 180 TO 229 DAYS 323 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 309 30 DAYS 311 60 DAYS 314 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 263 TWO MONTHS 265 THREE MONTHS 274 SIX MONTHS 299 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 304 ONE MONTH 310 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 302 60 DAYS 304 90 DAYS 306 120 DAYS 309 150 DAYS 312 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 11/16 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 17 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 3 13 WEEKS 310 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 731 60 DAYS 741 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 730 60 DAYS 740 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 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 9305240039 930524 OTC FOCUS CASINO STOCKS OFFER INVESTORS ROLL OF THE DICE BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CASINO STOCKS HAVE SOARED TO LEVELS THAT ONLY A RIVERBOAT GAMBLER COULD LOVE YET WALL STREET KEEPS PUSHING OUT MORE NEW ONES LIKE STATION CASINOS EXPECTED THIS WEEK THERE'S AN IRRATIONAL BUYING MANIA IN CASINO STOCKS SAYS CHARLES RONSON A STOCK PICKER AT NEW YORK INVESTMENT FIRM BALESTRA CAPITAL WHO ALSO PUBLISHES A NEWSLETTER CALLED IPO VALUE MONITOR EVERYTHING IS OVERPRICED IT'S LIKE BUYING A TULIP BULB FOR 500 YET EVEN A SKEPTIC LIKE MR RONSON ISN'T PREDICTING AN IMMINENT PLUNGE IN THE CASINO GROUP WHICH HAS SOARED 23 SINCE YEAREND AFTER CLIMBING 54 LAST YEAR SAYS MR RONSON THE MARKET IS FILLED WITH BLITHERING IDIOTS WHO WILL KEEP BIDDING THE CASINO STOCKS EVEN HIGHER INVESTORS WILL BE OFFERED A 49 STAKE ONE BET THEY'LL BE MAKING IS THAT REGULATORS WILL SMILE ON THE COMPANY WHICH HASN'T YET STARTED ITS NEXT TWO CASINOS INCLUDING ONE RIVERBOAT GAMBLING AND ENTERTAINMENT COMPLEX CALLED THE ST CHARLES RIVERFRONT STATION TO BE LOCATED NEAR ST LOUIS FRANK J FERTITTA JR WHO EARLIER RETIRED AS CHAIRMAN OF THE LAS VEGASBASED GAMBLING COMPANY IS SELLING 104 MILLION OF THE IPO'S 147 MILLION SHARES HE HAS SUFFERED HEART ATTACKS A COMPANY LAWYER SAYS THE COMPANY HAS BEEN HEADED SINCE FEBRUARY BY HIS 31YEAROLD SON FRANK J FERTITTA III WHO WILL HOLD 51 MILLION SHARES AFTER THE OFFERING AND HAS HELD SENIOR MANAGEMENT POSITIONS AT THE COMPANY SINCE 1985 I'M NOT COMFORTABLE WITH THE MANAGEMENT SAYS JOHN WAKEMAN A LEISURE ANALYST WITH T ROWE PRICE ASSOCIATES IN BALTIMORE IN THE BEGINNING OF THE CYCLE INVESTING IN CASINO STOCKS WAS A NOBRAINER BUT NOW THERE ARE SO MANY OF THESE DEALS THAT IF YOU SEE ANY RED FLAGS YOU DON'T NEED TO TOUCH IT STATION CASINOS PLANS TO OFFER ITS SHARES AT BETWEEN 15 AND 17 BASED ON THE MIDPOINT OF THAT RANGE THE STOCK WOULD TRADE AT 36 TIMES THE EARNINGS OF 44 CENTS A SHARE REPORTED FOR THE FISCAL YEAR ENDED MARCH 31 THIS IS FOR A COMPANY WITH ONLY 150 MILLION IN REVENUE AND 122 MILLION OF LONGTERM DEBT STATION CASINOS' PENDING RIVERBOAT CASINO IS THE HOTTEST TYPE OF GAMBLING STOCK NEVER MIND THAT THE COMPANY'S PLANNED ST CHARLES RIVERFRONT STATION HASN'T YET RECEIVED ALL THE PERMITS TO BEGIN CONSTRUCTION MISSOURI REGULATORS ARE STILL SCRUTINIZING DETAILS OF HOW THEY WILL ISSUE LICENSES FOR RECENTLY AUTHORIZED RIVERBOAT GAMBLING IN THE STATE THE COMPANY SAYS THAT AS SOON AS APPLICATIONS ARE READY IN MIDJULY IT WILL APPLY CURRENTLY STATION CASINOS IS REAPING WELL ABOVE HALF ITS REVENUE FROM ITS SUCCESSFUL PALACE STATION IN LAS VEGAS WHICH THE PROSPECTUS SAYS IS THE LOCAL FAVORITE BUT ANALYSTS SAY THAT OPERATION IS AT 94 CAPACITY WITH LITTLE ROOM FOR GROWTH ON THE OTHER SIDE OF TOWN THE COMPANY PLANS TO OPEN BOULDER STATION WHICH HASN'T YET RECEIVED ALL THE PERMITS REQUIRED TO BEGIN CONSTRUCTION THE COMPANY ALSO HAS SLOT ROUTE MANAGEMENT VENDING AND PAYPHONE SERVICE BUSINESSES IF YOU DECIDE TO FOLD ON STATION CASINOS THERE'S HOLLYWOOD CASINO BUT THIS HIGH ROLLER WHICH PLANS TO GO PUBLIC WITH 5280000 SHARES BETWEEN 14 AND 16 ALSO THROUGH LEAD UNDERWRITER SALOMON DOESN'T HAVE ANY EARNINGS THE COMPANY OPERATES THE SANDS HOTEL & CASINO IN ATLANTIC CITY NJ DON'T WORRY THE COMPANY EXPECTS TO EXPAND INTO RIVERBOAT GAMBLING HOLLYWOOD CASINO'S FIRST RIVERBOAT PROJECT IS EXPECTED TO OPEN NEXT MONTH IN AURORA ILL JUST WEST OF CHICAGO THE COMPANY IS PURSUING GAMBLING OPPORTUNITIES IN TEXAS AND ALABAMA WHERE GAMING ISN'T YET AUTHORIZED A BILL TO ALLOW RIVERBOAT GAMBLING WAS INTRODUCED INTO THE TEXAS LEGISLATURE IN FEBRUARY HOLLYWOOD HAS A NICE BOAT OUTSIDE OF CHICAGO AND THAT'S WHAT I'M PAYING FOR NOW T ROWE PRICE'S MR WAKEMAN SAYS IF YOU'RE BETTING ON FUTURE GROWTH IT SEEMS LIKE THE COMPANY HAS GOOD RELATIONSHIPS IN TEXAS WHICH COULD BE BIG BUSINESS SOME DAY BUT MR WAKEMAN SAYS RELATIONSHIPS WITH LOCAL AUTHORITIES ALONE WON'T BE ENOUGH FOR ALL THESE CASINO COMPANIES IN THE NEXT COUPLE YEARS SOON THE RELATIONSHIPS WON'T MATTER AND IT'S THE CAPITAL THAT WILL COUNT HE SAYS INSTEAD OF COSTING 20 MILLION TO 50 MILLION TO START UP A BOAT OR A CASINO AND PAY THE LOCAL FEES IT'S GOING TO COST 150 MILLION THE BIG GUYS ARE GOING TO COME IN AND A LOT OF LITTLE ONES AREN'T GOING MAKE IT JUMER HOTELS & CASINOS IS ANOTHER GAMBLING COMPANY PLANNING TO COME PUBLIC NEXT MONTH AT BETWEEN 14 AND 16 A SHARE OR 79 TIMES ITS EARNINGS OF 19 CENTS A SHARE LAST YEAR DONALDSON LUFKIN & JENRETTE IS LEAD UNDERWRITER THIS CASINO COMPANY OPERATES THE ROCK ISLAND BOATWORKS A RIVERBOAT CASINO COMPLEX AND FOUR EUROPEANTHEME HOTELS IN ILLINOIS AND IOWA CASINO AS OPPOSED TO HOTEL REVENUE HELPED BOOST THE COMPANY'S EARNINGS SHARPLY LAST YEAR THE COMPANY PLANS TO KEEP GROWING BY ADDING THE ST LOUIS BOATWORKS RIVERBOAT COMPLEX AND A RELATED WATERFRONT HOTEL BUT THIS PROJECT ALSO DEPENDS UPON LICENSING OF THE COMPANY BY MISSOURI GAMBLING AUTHORITIES THE COMPANY DOESN'T EXPECT TO BE OPERATING THE DOCKSIDE CASINO FOR A YEAR OR MORE FOR THOSE WHOSE STOMACHS CAN'T HACK THE RIVERBOAT CASINOS THERE IS PRIMADONNA RESORTS WHICH OPERATES WHISKEY PETE'S HOTEL & CASINO AND THE PRIMADONNA RESORT & CASINO ON EITHER SIDE OF INTERSTATE 15 AT THE CALIFORNIA/NEVADA BORDER THIS COMPANY HAS HAD ANNUAL EARNINGS GROWTH OF 20 TO 25 IN THE LAST THREE YEARS POSTING EARNINGS OF 150 A SHARE IN 1992 THE 58 MILLIONSHARE OFFERING IS PLANNED BETWEEN 14 AND 16 THROUGH ITS LEAD UNDERWRITER SALOMON YOU HAVE TO LOOK FOR THE NONOBVIOUS CASINO STOCKS SAYS TOM SPRAGUE A GAMBLING ANALYST FOR FIDELITY MANAGEMENT & RESEARCH THE BOSTON MUTUAL FUND COMPANY THIS IS A REAL PHENOMENON AND IT'S NOT A FAKE INDUSTRY BUT YOU HAVE TO BE CAREFUL THAT CERTAIN AREAS DON'T GET SATURATED SMALL INVESTORS WHO ARE TEMPTED TO DIP INTO THESE STOCKS ARE THE MOST LIKELY TO HAVE THE BIGGEST REGRETS SAYS BALESTRA'S MR RONSON WHEN THERE IS A BULL TREND LIKE THIS YOU SHOULD ONLY BUY THEM IF YOU ARE A REGULAR PARTICIPANT AND HAVE A LOT OF MONEY HE SAYS PEOPLE HEAR ABOUT A FRIEND WHO MADE A LOT OF MONEY ON ONE OF THESE STOCKS SO THEY THINK THEY CAN GET IN WITH AN IPO THAT IS PRECISELY THE WRONG TIME TO BUY WEAK BOND PRICES AND HEAVY SELLING DRAGGED DOWN THE OVERTHECOUNTER MARKET BREAKING THE WEEK'S RALLY THE NASDAQ COMPOSITE INDEX DROPPED 314 OR 045 TO 69429 DECLINING ISSUES OUTNUMBERED ADVANCERS 1379 TO 1328 ON TOTAL VOLUME OF 2781 MILLION SHARES DOWN FROM THURSDAY'S 3432 MILLION TECHNOLOGY STOCKS WERE HIT THE HARDEST MICROSOFT FELL 1 5/8 TO 92 1/2 APPLIED MATERIALS DROPPED 1 1/2 TO 52 AND BMC SOFTWARE TUMBLED 3 1/2 TO 53 1/8 DSC COMMUNICATIONS JUMPED 1 1/2 TO 41 1/8 IN ACTIVE TRADING PACIFIC BELL'S DECISION TO UPGRADE ITS NETWORK WITH FIBER OPTICS MAKES FOR THE COMPANY'S LARGESTEVER CONTRACT ESTIMATED BY ANALYSTS TO BE WORTH AT LEAST 300 MILLION 9305240038 930524 INTERNATIONAL WASHINGTON INSIGHT CLINTON APPEARS POISED TO RECOGNIZE SOUTH AFRICA URGING SUPPORT FUNDS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN IS A PARIAH STATE NO LONGER A PARIAH IN THE CASE OF SOUTH AFRICA THE CLINTON ADMINISTRATION'S ANSWER IS SOON SECRETARY OF STATE WARREN CHRISTOPHER PROMISED LATE LAST WEEK THAT THE US WOULD WORK TO HELP SOUTH AFRICA REENTER THE GLOBAL ECONOMY ONCE A DATE FOR FREE ELECTIONS IS SET AND A MULTIRACIAL TRANSITIONAL EXECUTIVE COUNCIL IS IN PLACE TO OVERSEE THE PROCESS AT THE SAME TIME THE ADMINISTRATION QUIETLY INSTRUCTED THE AGENCY FOR INTERNATIONAL DEVELOPMENT TO START HELPING A CELEBRATED SOUTH AFRICAN COMMISSION CHARGED WITH INVESTIGATING POLITICAL VIOLENCE SUPPORT FOR THE PANEL WHICH IS FINANCED BY THE SOUTH AFRICAN GOVERNMENT WOULD BE A FIRST STEP TOWARD LIFTING REMAINING ECONOMIC SANCTIONS AGAINST PRETORIA MOREOVER AIDES SAY PRESIDENT CLINTON COULD FORMALLY WELCOME SOUTH AFRICA BACK TO THE FOLD WITH NEW DIPLOMATIC INITIATIVES AND SOME REAL CASH EITHER EARLY NEXT MONTH WHEN THE COUNCIL IS DUE TO BE ESTABLISHED OR IN JULY WHEN AFRICAN NATIONAL CONGRESS LEADER NELSON MANDELA AND SOUTH AFRICAN PRESIDENT FW DE KLERK PLAN TO VISIT THE US BUT EVEN WITH THE EXPECTED ENDORSEMENT FROM MR MANDELA MR CLINTON COULD FIND SUCH MOVES POLITICALLY TOUGH REP DONALD PAYNE A NEW JERSEY DEMOCRAT AND MEMBER OF THE CONGRESSIONAL BLACK CAUCUS WHO SERVES ON THE FOREIGN AFFAIRS AFRICA SUBCOMMITTEE SAYS THE US SHOULDN'T NORMALIZE RELATIONS WITH SOUTH AFRICA OR LIFT AID RESTRICTIONS UNTIL AFTER A DEMOCRATICALLY ELECTED MULTIRACIAL GOVERNMENT IS ACTUALLY IN PLACE UNLESS YOU HOLD SOMETHING OVER THE HEADS OF THESE PEOPLE YOU MAY NOT GET THERE HE SAYS YOU HAVE TO CONSTANTLY HAVE SOME EXTERNAL FORCE THAT VIEW IS SHARED BY MANY US ANTIAPARTHEID GROUPS MOST ECONOMIC SANCTIONS ON SOUTH AFRICA WERE LIFTED IN JULY 1991 AFTER PRETORIA REPEALED KEY APARTHEID LAWS AND RELEASED REMAINING POLITICAL PRISONERS BUT US LAW STILL PROHIBITS AID TO EITHER THE SOUTH AFRICAN GOVERNMENT OR ANY INSTITUTION IT SUPPORTS AS A RESULT SOME 80 MILLION ALLOCATED FOR SOUTH AFRICA THIS YEAR INSTEAD WILL ALL GO TO PRIVATE VOLUNTARY ORGANIZATIONS THAT HAVE NO LINKS TO THE GOVERNMENT THE US MAY NOT SELL EITHER ARMS OR OIL TO SOUTH AFRICA AND BY LAW THE US MUST BLOCK INTERNATIONAL LENDING TO SOUTH AFRICA AT THE SAME TIME 29 STATES AND MORE THAN 130 CITIES AND COUNTIES IN THE US HAVE EVEN TOUGHER RESTRICTIONS ON TRADE AND INVESTMENT WITH SOUTH AFRICA MR MANDELA'S ANC CLEARLY HARBORS STRONG DOUBTS ABOUT THE SINCERITY AND GOOD WILL OF THE PRETORIA GOVERNMENT BUT THE ANC'S LEADERS ARE EVEN MORE CONCERNED ABOUT SOUTH AFRICA'S DEPRESSED ECONOMY IN APRIL THEY CALLED FOR A RENEWAL OF FOREIGN AID AND INVESTMENT AS SOON AS A DATE FOR ELECTIONS IS SET AND THE TRANSITION TO DEMOCRACY IS SOLIDLY UNDER WAY THEY REALIZED THEY COULD END UP INHERITING THE WIND SAYS A SENIOR US OFFICIAL THAT'S WHEN THEY DECIDED THEY COULDN'T AFFORD TO WAIT ON THE SANCTIONS NORMALIZATION OF US RELATIONS WITH SOUTH AFRICA OFFICIALS SAY PROBABLY WILL COME IN THREE STAGES BEGINNING WITH THE ANNOUNCEMENT OF THE TRANSITIONAL COUNCIL AND CULMINATING WHEN FREE ELECTIONS ARE HELD PROBABLY EARLY NEXT YEAR TO START THE CLINTON ADMINISTRATION IS CONSIDERING ASKING CONGRESS FOR 10 MILLION TO HELP UNDERWRITE THE TRANSITIONAL COUNCIL AND FOUR WATCHDOG COMMISSIONS CHARGED WITH MONITORING THE CAMPAIGN AND THE ELECTIONS THE GRAMM AMENDMENT WHICH REQUIRES THE US TO VETO INTERNATIONAL LENDING TO SOUTH AFRICA ALSO COULD BE EASED AT THAT TIME ONCE THE ELECTORAL PROCESS IS FULLY UNDER WAY THE US WOULD BEGIN NEGOTIATIONS ON TAX AGREEMENTS CIVIL AVIATION AND CULTURAL AND SCIENTIFIC COOPERATION A LARGER AID PACKAGE AS WELL AS ARMS SALES AND QUESTIONS OF NUCLEAR COOPERATION OFFICIALS SAY WOULD BE LEFT UNTIL AFTER THE ELECTIONS BUT PLANNING FOR SUCH HELP INCLUDING A POSSIBLE MULTILATERAL ASSISTANCE PACKAGE SIMILAR TO ONE PROVIDED TO THE PHILIPPINES IN THE POSTMARCOS ERA COULD BEGIN SOONER PRESIDENT CLINTON ALSO COULD MAKE A PUBLIC STATEMENT ENDORSING SOUTH AFRICA'S TRANSITION TO DEMOCRACY AND URGING US STATE AND LOCAL GOVERNMENTS TO BEGIN LIFTING THEIR RESTRICTIONS AS WELL A PUBLIC ENDORSEMENT AND EVEN A SMALL AMOUNT OF AMERICAN HELP COULD MAKE A LARGE SYMBOLIC DIFFERENCE SAYS PAULINE BAKER AN AFRICA EXPERT AT THE ASPEN INSTITUTE A THINK TANK THE REAL FAULT LINE NOW ISN'T BETWEEN BLACKS AND WHITES BUT BETWEEN THOSE WHO OPPOSE NEGOTIATIONS AND THOSE WHO SUPPORT THEM SHE SAYS AMERICAN HELP WOULD SEND A CLEAR MESSAGE THAT NEGOTIATIONS AND ELECTIONS ARE THE ONLY WAY TO SOLVE SOUTH AFRICA'S PROBLEMS SHE ARGUES 9305240037 930524 INTERNATIONAL KUCHMA RESIGNATION KIEV UKRAINE'S PARLIAMENT FRIDAY REJECTED PRIME MINISTER LEONID KUCHMA'S RESIGNATION WHICH HE ANNOUNCED THURSDAY AND DELAYED A DECISION ON A PROPOSAL BY PRESIDENT LEONID KRAVCHUK THAT HE BECOME HEAD OF THE GOVERNMENT CURRENTLY THE PRESIDENT IS HEAD OF THE EXECUTIVE BRANCH AND THE PRIME MINISTER IS HEAD OF GOVERNMENT SOME LAWMAKERS AND GOVERNMENT OFFICIALS WORRY THAT UKRAINE'S ALREADY STAGGERING ECONOMY IS HEADED FOR COLLAPSE BECAUSE NO ONE WILL BE IN CHARGE OF THE REFORM PROCESS FRIENDS OF MR KUCHMA SAY IT IS POSSIBLE THAT EVEN THOUGH PARLIAMENT DIDN'T ACCEPT HIS RESIGNATION THE PRIME MINISTER WILL QUIT HIS POST ANYWAY 9305240036 930524 LAW PART OF TELEMARKETING LAW IS CALLED UNCONSTITUTIONAL PORTLAND ORE A FEDERAL JUDGE RULED A MAIN PROVISION OF A 1991 LAW AIMED AT PROTECTING CONSUMERS FROM ANNOYING TELEMARKETING CALLS IS UNCONSTITUTIONAL JUDGE JAMES A REDDEN IN AN OPINION FRIDAY SAID THE TELEPHONE CONSUMER PROTECTION ACT'S BAN ON COMMERCIAL USE OF COMPUTERS THAT AUTOMATICALLY DIAL PHONE NUMBERS TO DELIVER RECORDED MESSAGES VIOLATES THE FIRST AMENDMENT GUARANTEE OF FREE SPEECH THE FEDERAL COMMUNICATIONS COMMISSION THE AGENCY RESPONSIBLE FOR ENFORCING THE LAW HAD NO COMMENT THE GOVERNMENT COULD APPEAL THE DECISION OR CONGRESS COULD TRY TO REWRITE THE LAW JUDGE REDDEN SAID THE LAW WOULDN'T DO MUCH TO REDUCE THE LEVEL OF TELEMARKETING CALLS BECAUSE IT PERMITTED COMPANIES TO USE COMPUTERS THAT AUTOMATICALLY DIAL CALLS AS LONG AS LIVE OPERATORS DELIVER THE SALES PITCH THE LAW LET CHARITIES POLITICAL ORGANIZATIONS AND POLLSTERS USE AUTODIALERS THAT DELIVER RECORDED MESSAGES 9305240035 930524 ITALY'S CONSUMER PRICES SEEN UP MILAN ITALY'S CONSUMER PRICES ARE LIKELY TO SHOW A RISE OF ABOUT 4 IN MAY FROM A YEAR EARLIER ACCORDING TO PROVISIONAL COSTOFLIVING STATISTICS FROM SEVERAL MAJOR CITIES THE MAY INFLATION RATE IF CONFIRMED BY THE NATIONAL STATISTICS BUREAU ISTAT AT THE BEGINNING OF NEXT MONTH WOULD BE DOWN FROM 42 INFLATION RATE REGISTERED IN APRIL THE LOCAL INFLATION STATISTICS ALSO SHOWED THAT PRICES WERE UP BY AN AVERAGE 03 IN MAY FROM APRIL 9305240034 930524 TECHNOLOGY A SPECIAL REPORT ESSAY FALSE GODS BY G PASCAL ZACHARY BY NOW YOU'VE READ ALL ABOUT THE CELEBRATION OF THE HIGHTECH GENIUS ABOUT HOW THE INDIVIDUAL PROPELS TECHNOLOGICAL ADVANCEMENTS FORWARD HOW IT ONLY TAKES A SINGLE GENIUS TO WIN BIG IN THE MARKET HOW THE NURTURING OF CREATIVE INDIVIDUALS IS THE MOST IMPORTANT TASK A TECHNOLOGY COMPANY CAN PURSUE HOW MISGUIDED OF COURSE SOME PEOPLE ARE SMARTER THAN OTHERS AND SOME PEOPLE ARE VERY SMART INDEED PERHAPS EVEN GENIUSES BUT TODAY'S LEADINGEDGE TECHNOLOGIES ARE SO COMPLEX THAT NO ONE PERSON NO MATTER HOW SMART CAN PLAY A DECISIVE ROLE IN THE CREATION OF A COMMERCIAL SENSATION THE SIMPLE TRUTH IS THIS THE MOST DURABLE INVENTIONS ARE THE WORK OF TEAMS YES INDIVIDUAL INITIATIVE IS IMPORTANT BUT THE INDIVIDUAL CAN ONLY TAKE YOU SO FAR THE DECISIVE ADVANTAGE COMES FROM CREATING THE ORGANIZATION AND TEAMWORK THAT WILL NURTURE IMPROVE AND SUSTAIN THE INITIAL ACHIEVEMENT INDEED THE DIRTY LITTLE SECRET AMONG HIGHTECH MANAGERS IS THAT AN INFATUATION WITH A FEW SUPERSTARS CAN YIELD DISASTROUS RESULTS THEY KNOW IT CAN DISTRACT ATTENTION FROM THE REAL INGREDIENTS OF SUCCESS TEAMWORK AND THE BRUTE FORCE OF MORE MONEY AND PEOPLE I THINK THE INDIVIDUAL IS OVERRATED IN THE WHOLE PROCESS OF PUSHING TECHNOLOGY FORWARD SAYS ROBERT LUCKY VICE PRESIDENT OF APPLIED RESEARCH AT BELLCORE THE LIVINGSTON NJ RESEARCH ARM OF THE BABY BELLS MOST PEOPLE OF COURSE DON'T WANT TO HEAR THIS THE IMPULSE TO LIONIZE A FEW SPEAKS TO SOME DEEP BUT TWISTED PSYCHOLOGICAL NEED AND THE CYCLE OF FINDING AND HONORING GENIUSES SMACKS OF A PRIMITIVE RITUAL PEOPLE NEED HEROES MR LUCKY SAYS SO ONCE AN INNOVATION MAKES ITS MARK THERE'S ALWAYS A SEARCH FOR HEROES AND THEN THE ACT OF BESTOWING GLORY ON THEM IT ISN'T ONLY HUBRIS THAT DRIVES THE GENIUS MYTH THE US PATENT SYSTEM WHICH AIMS TO PROTECT THE RIGHTS OF INVENTORS TAKES THE EXERCISE OF APPORTIONING CREDIT FOR INVENTIONS TO THE EXTREME IT'S A WINNERTAKEALL SYSTEM YET OFTEN THE SEARCH FOR THE GENIUS BEHIND AN INVENTION TURNS BITTER EXPOSING THE VERY EMPTINESS OF THE EFFORT IT BECOMES CLEAR THAT SO MANY PEOPLE HAVE A CREDIBLE CLAIM ON A TECHNOLOGY THAT TO CALL ANYBODY THE SOLE CREATOR IS LUDICROUS INSTEAD IT AMPLY ILLUSTRATES NEWTON'S PHRASE THAT ALL INVENTORS STAND ON THE SHOULDERS OF GIANTS TO THIS DAY FOR INSTANCE AN IMPASSIONED ARGUMENT RAGES OVER WHO FIRST INVENTED THE DIGITAL COMPUTER A US COURT BESTOWED THIS DISTINCTION ON JOHN VINCENT ATANASOFF IN 1973 BUT POPULAR OPINION CREDITS PRESPER ECKERT JR AND JOHN WILLIAM MAUCHLY THE MEN WHO ACTUALLY BUILT A WORKING COMPUTER BUT AGAIN THE DEBATE IS POINTLESS SO MANY PIONEERS ADVANCED THE PRACTICE OF COMPUTING BEFORE AND DURING WORLD WAR II THAT SINGLING OUT ONE OR TWO INVENTORS SEEMS ABSURD A SIMILAR DISPUTE CENTERS ON THE INTEGRATED CIRCUIT PERHAPS THE MOST PIVOTAL INVENTION OF THE CENTURY TODAY AN UNEASY TRUCE EXISTS BETWEEN PROPONENTS OF JACK KILBY WHO SHOWED IN 1958 THAT SEPARATE PARTS COULD BE CONTAINED ON ONE SEMICONDUCTOR CHIP AND THE LATE ROBERT NOYCE WHO SIX MONTHS LATER DEMONSTRATED THAT THESE PARTS COULD BE EASILY AND ECONOMICALLY LINKED TOGETHER AND THEN THERE'S THE MICROPROCESSOR A COMPLEX INTEGRATED CIRCUIT THAT IS ESSENTIALLY AN ENTIRE COMPUTER ON A SINGLE CHIP FOR YEARS TED HOFF AN ENGINEER AT INTEL CORP WAS CREDITED WITH THE PRINCIPAL INVENTION BUT IN 1990 A LITTLEKNOWN INVENTOR NAMED GILBERT HYATT RECEIVED A PATENT ON THE BASIC DESIGN OF A MICROPROCESSOR EVEN THOUGH HE HAD NEVER BUILT ONE TEXAS INSTRUMENTS HAS CHALLENGED THE PATENT AWARD ASKING THE PATENT OFFICE TO REVIEW IT BUT SOME COMPANIES HAVE SIGNED LICENSING AGREEMENTS WITH MR HYATT JUST IN CASE SUCH PATERNITY BATTLES ARE MORE THAN SILLY THEY ARE ALSO UNFAIR OVER THE YEARS THE WINNERS OF THESE FIGHTS INVARIABLY ARE MEMORIALIZED AS GENIUSES WHILE THE LOSERS ARE RELEGATED TO THE STATUS OF HISTORICAL FOOTNOTES ONE OF THE COUNTRY'S BEST KNOWN INVENTORS ALEXANDER GRAHAM BELL CAME WITHIN A WHISKER OF LANDING IN OBLIVION BECAUSE HIS PATENT APPLICATION FOR THE INVENTION OF THE TELEPHONE WAS FILED ONLY HOURS BEFORE THAT OF ELISHA GRAY WHO HAD ESSENTIALLY THE SAME IDEA THAT THE SUPREME COURT DECIDED BELL HAD THE SUPERIOR CLAIM DOES NOT MAKE GRAY ANY LESS OF AN INVENTOR NOR DOES IT MAKE BELL ANY MORE OF A GENIUS YET WHO HAS HEARD OF ELISHA GRAY THE BELL EXAMPLE ILLUSTRATES YET ANOTHER ARGUMENT AGAINST LIONIZING ONE INDIVIDUAL TO THE EXCLUSION OF OTHERS IF GENIUSES ARE SO SMART WHY DON'T THEY USUALLY DIVINE THE ULTIMATE VALUE OF THEIR INVENTIONS THAT IS IF THE LITMUS TEST OF A TECHNOLOGICAL GENIUS IS WHETHER THE PERSON SAW HOW A DISCOVERY WOULD CHANGE THE WAY PEOPLE LIVE THEN MANY OF THE INDIVIDUALS WE HONOR TODAY WOULD FAIL THE TEST THE INVENTORS OF RADIO WRITES HISTORIAN PAUL CERUZZI DID NOT FORSEE ITS USE FOR BROADCASTING ENTERTAINMENT SPORTS AND NEWS THEY SAW IT AS A TELEGRAPH WITHOUT WIRES THE EARLY BUILDERS OF AUTOMOBILES DID NOT SEE AN AGE OF AUTOMOBILITY' THEY SAW A HORSELESS CARRIAGE' LIKEWISE THE COMPUTER'S INVENTORS PERCEIVED ITS ROLE IN FUTURE SOCIETY IN TERMS OF FUNCTIONS IT WAS SPECIFICALLY REPLACING IN CONTEMPORARY SOCIETY BELL FOR INSTANCE THOUGHT THE TELEPHONE WAS MERELY A BETTER TELEGRAPH AND NOT A REVOLUTIONARY MEANS OF CARRYING CONVERSATIONS BETWEEN PEOPLE IN FARAWAY PLACES AND WHEN HOWARD AIKEN WHO DESIGNED SOME OF THE MOST POWERFUL COMPUTERS IN THE 1940S WAS ASKED HOW MANY OF HIS MACHINES WOULD EVER BE NEEDED IN THE WORLD HE BOLDLY PREDICTED FOUR OR FIVE SOME PIONEERS OF COURSE DO GRASP THE SHAPE OF THINGS TO COME AND PROFIT IMMENSELY FROM THIS INTUITION WILLIAM GATES THE MULTIBILLIONAIRE FOUNDER AND CHAIRMAN OF MICROSOFT CORP AND STEVEN JOBS CREDITED WITH CREATING A MASS MARKET FOR THE PERSONAL COMPUTER WHILE AT APPLE COMPUTER INC EACH SEEMS TO FIT THIS DESCRIPTION BUT DOES THIS MAKE THEM GENIUSES WOULD THE CHANGES THEY WROUGHT HAVE HAPPENED WITHOUT THEM DID THEY SINGLEHANDEDLY REVOLUTIONIZE THE WORLD OF TECHNOLOGY NO IN FACT THEY PROVE THE POINT THEY WERE PART OF A TEAM JUST AS IMPORTANT AS THE CREATORS OF THE TECHNOLOGY BUT NO MORE OR LESS CRUCIAL OUR OBSESSION WITH THE LONE GENIUS HOWEVER IS MORE THAN AN INTELLECTUAL EXERCISE ITS HARM MORE WIDESPREAD THAN THE DAMAGE DONE TO THE INVENTORS AND BUILDERS WHO LOSE THEIR SHOT AT FAME AND MONEY THE INFATUATION UNDERMINES OUR UNDERSTANDING OF THE ACTUAL SOURCES OF INNOVATION AND MAKES IT HARDER TO FOSTER TECHNOLOGICAL CHANGE SO FEW INVENTIONS ACHIEVE COMMERCIAL SUCESS PRECISELY BECAUSE SO FEW INVESTORS AND COMPANIES UNDERSTAND THE INGREDIENTS THAT GO INTO MAKING A BUSINESS SUCCESS YET AS INVENTIONS GROW IN COMPLEXITY INDIVIDUAL CONTRIBUTIONS BECOME LESS IMPORTANT AND OFTEN IMPOSSIBLE TO DISCERN ALTOGETHER COMPLEX TASKS WHETHER BUILDING A NEW COMPUTER OPERATING SYSTEM OR A MICROCHIP REQUIRE LARGE TEAMS AND HUGE RESOURCES ONCE THE INVENTION IS FINISHED AN ORGANIZATION MUST CARRY IT FORWARD AND EVEN THEN RELY ON SCORES OF OTHER CONCERNS AS IT SEEKS TO IMPOSE A SYSTEM AROUND A CORE INNOVATION THIS SYSTEM CAN BE AS MULTIFACETED AS ELECTRICITY WHICH REQUIRES ONE SET OF SYSTEMS IN THE HOME ANOTHER FOR THE GENERATION OF ELECTRICITY A THIRD FOR ITS DISTRIBUTION AND A FOURTH COVERING THE SEEMINGLY INFINITE NUMBER OF APPLIANCES THAT MAY SHARE ONLY A RELIANCE ON ELECTRICITY FOR POWER IN THIS WAY THE BUILDING OF ORGANIZATIONS GOES HAND IN HAND WITH TECHNICAL INVENTION SAYS THOMAS HUGHES A HISTORIAN AT THE UNIVERSITY OF PENNSYLVANIA WHO HAS WRITTEN WIDELY ON TECHNOLOGY AND THE AMERICAN PAST CONSIDER THE CASE OF THOMAS ALVA EDISON WHO IS CREDITED WITH SUCH TRAILBLAZING INVENTIONS AS THE PHONOGRAPH AND ELECTRIC LAMP HE HAS CERTAINLY BEEN MYTHOLOGIZED AS A HEROIC INVENTOR BUT THOSE WHO HAVE STUDIED HIM CLOSELY REALIZE HE WAS HIGHLY DEPENDENT ON HIS TEAM MR HUGHES SAYS EDISON HAD LITTLE INTEREST IN ADVERTISING HIS DEPENDENCY ON OTHERS YET IT WAS NOT VANITY BUT THE NEED FOR FINANCIAL BACKING THAT DROVE EDISON TO SEEMINGLY TAKE CREDIT FOR SO MUCH HE TOOK SUCH A ROLE IN THE PROMOTION OF AN INVENTION BECAUSE HIS ASSOCIATION WITH IT MADE IT POSSIBLE TO RAISE MONEY AND ATTRACT PUBLIC ATTENTION SAYS MR HUGHES WHO CREDITS EDISON WITH REALIZING HE WAS A BRAND NAME AS AN INVENTOR OUR OBSESSION WITH INDIVIDUALS ALSO SOMETIMES LEADS US TO FOLLOW PEOPLE BLINDLY THINKING THEY CAN DO NO WRONG THERE IS A CERTAIN SENSE OF INFALLIBILITY ABOUT THESE HEROES MANY PEOPLE FOR INSTANCE ARE CONVINCED THAT STEVE JOBS MUST HAVE SOMETHING HE'S HIDING FROM THE PUBLIC SOMETHING THAT WILL MAKE HIS CURRENT COMPANY NEXT INC AS REVOLUTIONARY AND SUCCESSFUL AS APPLE THEY SIMPLY CAN'T IMAGINE THAT HE WON'T REPEAT HIS PAST GLORIES SUPERSTAR COMPUTER DESIGNER SEYMOUR CRAY WIDELY RECOGNIZED AS A GENIUS HAS A SIMILAR LEGION OF BELIEVERS HIS LARGESCALE NUMBERCRUNCHERS SOUGHT AFTER DURING THE COLD WAR WHEN THE US HAD UNLIMITED FUNDS FOR EVERFASTER COMPUTERS THAT MIGHT GIVE EVEN A SMALL EDGE TO BOMB DESIGNERS AND OTHERS ARE NO LONGER ECONOMICALLY ATTRACTIVE YET THE RECLUSIVE MR CRAY PERSISTS IN BUILDING HIS ARCANE MACHINES HE IS WORKING 90HOUR WEEKS HUSTLING FOR FUNDS AND CUSTOMERS AND TRYING TO FINISH A SUPERCOMPUTER THAT IS FOUR YEARS BEHIND SCHEDULE CONSIDER BY CONTRAST THE SITUATION FACED BY MICROSOFT CORP WHICH IS PUTTING THE FINISHING TOUCHES ON A MAMMOTH COMPUTER PROGRAM THAT WILL CONTROL THE BASIC OPERATIONS OF ADVANCED MACHINES CALLED WINDOWS NT THIS SYSTEM SOFTWARE CONSISTS OF FOUR MILLION LINES OF CODE TOO MUCH FOR ONE PERSON TO READ AND REMEMBER THERE IS NO DENYING OF COURSE THAT NT REQUIRES THE LABOR OF MANY VERY SMART PEOPLE IT IS EQUALLY CERTAIN HOWEVER THAT THE GRAND SCALE OF THIS PIECE OF SOFTWARE RENDERS IT BEYOND THE INTELLECTUAL SPAN OF EVEN A GENIUS WRITING THAT MUCH CODE REQUIRES A HUGE TEAM EFFORT SAYS PAUL MARITZ THE MICROSOFT EXECUTIVE OVERSEEING THE JOB THREE HUNDRED PEOPLE HAVE TO COME TOGETHER THAT DOESN'T COME FROM ONE GUY MR ZACHARY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU 9305240033 930524 INTERNATIONAL RUSSIAN AGREEMENT LIKELY TO PRODUCE FRESH IMF LOANS BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE RUSSIAN GOVERNMENT AND THE CENTRAL BANK REACHED A BREAKTHROUGH AGREEMENT ON FINANCIAL POLICY THAT IS LIKELY TO LEAD TO 3 BILLION IN FRESH LOANS FROM THE INTERNATIONAL MONETARY FUND THE JOINT POLICY STATEMENT DEMANDED BY THE IMF BEFORE IT CONSENTS TO ADDITIONAL LOANS TO RUSSIA IS STILL ONLY IN DRAFT FORM BUT INTERNATIONAL LENDING OFFICIALS ARE OPTIMISTIC IT WILL SOON BE FORMALLY ADOPTED SINCE ONE OF THE DRAFT'S SIGNATORIES IS CENTRAL BANK CHAIRMAN VIKTOR GERASHCHENKO WHO HAS REFUSED TO SIGN SIMILAR STATEMENTS IN THE PAST THE AGREEMENT IS EXPECTED TO REKINDLE THE IMF'S PROGRAM IN RUSSIA WHICH HAS BEEN ON HOLD FOR SEVERAL MONTHS UNTIL NOW IMF OFFICIALS HAD FELT THEY COULDN'T WORK EFFECTIVELY IN RUSSIA WHILE THE GOVERNMENT WAS AT ODDS WITH THE CENTRAL BANK MINISTER OF FINANCE BORIS FYODOROV HAS FREQUENTLY CRITICIZED MR GERASHCHENKO FOR FAILING TO TAKE MEASURES TO STEM INFLATION AND HAS EVEN CALLED FOR THE CENTRAL BANK CHAIRMAN TO BE FIRED LAST YEAR THE IMF LENT RUSSIA 1 BILLION IT WAS UNABLE TO LEND MORE PARTLY BECAUSE RUSSIA COULDN'T MEET THE FUND'S TARGETS FOR FISCAL CONTROL THE IMF HOPES THAT ITS FAIRLY MODEST LENDING TO RUSSIA WILL HELP BOLSTER INTERNATIONAL CONFIDENCE AND LEAD TO LARGESCALE LENDING FROM OTHER PRIVATE AND GOVERNMENTAL SOURCES THE CENTERPIECE OF FRIDAY'S JOINT STATEMENT IS A PLEDGE TO COORDINATE POLICIES AIMED AT LOWERING RUSSIA'S MONTHLY INFLATION RATE TO 10 BY THE END OF THE YEAR ACCORDING TO RUSSIA'S INTERFAX NEWS SERVICE IN APRIL INFLATION ROSE 16 FROM THE PREVIOUS MONTH AND NEW BUDGET COMMITMENTS ARE ADDING TO INFLATIONARY PRESSURE FOR ALL OF LAST YEAR INFLATION EXCEEDED 2500 THE DRAFT ALSO CALLS FOR THE CENTRAL BANK TO ALLOW THE RUBLE TO FLOAT WITHOUT INTERVENTION IN THE LOCAL CURRENCY MARKET THE CENTRAL BANK HAS SPENT HUNDREDS OF MILLIONS OF DOLLARS TRYING TO BOLSTER THE RUBLE WHICH HAS SLIPPED NONETHELESS TO NEARLY 1000 TO THE DOLLAR FROM ABOUT 400 AT THE BEGINNING OF THIS YEAR THE AGREEMENT ALSO CALLS FOR THE BANK TO SIGNIFICANTLY NARROW THE GAP BETWEEN THE AMOUNT OF INTEREST IT CHARGES COMMERCIAL BANKS THAT BORROW MONEY AND THE RATE THE BANKS THEN CHARGE THEIR CUSTOMERS CURRENTLY THE BANK LENDS TO COMMERCIAL BANKS AT 120 ANNUAL INTEREST THE BANKS THEN CHARGE CUSTOMERS ABOUT 150 IN ADDITION THE CENTRAL BANK AGREED TO BEGIN PHASING OUT LOANS TO INEFFICIENT INDUSTRIES AND REGIONS IN THE FUTURE PROJECT CREDITS ARE TO COME NOT FROM THE BANK BUT FROM THE STATE BUDGET AND ARE TO DEPEND MORE HEAVILY ON A PROJECT'S ECONOMIC VIABILITY INTERFAX REPORTED THE GOVERNMENT FOR ITS PART PLEDGED TO TAKE MEASURES TO INCREASE ITS TAX INTAKE TO DO SO RUSSIA WILL REDUCE CERTAIN TAX BREAKS AND SUBSIDIES ESPECIALLY ON IMPORTS TAXES ON ENERGY PRODUCERS ARE TO BE RAISED GOVERNMENT OFFICIALS ARE LIKELY TO FACE RESISTANCE FROM PARLIAMENT HOWEVER OVER THE WEEKEND PARLIAMENTARY CHAIRMAN RUSLAN KHASBULATOV A FREQUENT GOVERNMENT CRITIC PROPOSED CUTTING RUSSIA'S TAX RATES HIS STATEMENT DREW IMMEDIATE CENSURE FROM FINANCE MINISTER FYODOROV 9305240032 930524 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR ECONOMIC GROWTH IN THE FIRST QUARTER PROBABLY SLOWED EVEN MORE THAN THE GOVERNMENT ORIGINALLY ESTIMATED BECAUSE OF A LARGERTHANEXPECTED INCREASE IN THE MARCH TRADE DEFICIT THE COMMERCE DEPARTMENT INITIALLY REPORTED GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US GREW AT A PALTRY 18 ANNUAL RATE IN THE FIRST QUARTER BUT THAT ESTIMATE WAS BASED ONLY ON PARTIAL DATA AND DIDN'T TAKE INTO ACCOUNT THE 1021 BILLION MARCH TRADE DEFICIT REPORTED LAST WEEK THINGS WERE LOOKING PRETTY GOOD UNTIL THE TRADE NUMBER CAME OUT SAID SAMUEL KAHAN CHIEF ECONOMIST FOR FUJI SECURITIES INC MR KAHAN PREDICTED FIRSTQUARTER GDP WILL BE REVISED DOWN TO A 15 RATE WHEN THE COMMERCE DEPARTMENT RELEASES ITS REPORT THIS WEEK BEFORE THE RELEASE OF THE TRADE REPORT MANY ECONOMISTS WERE SPECULATING THAT THE DEPARTMENT WOULD INCREASE ITS ESTIMATE WE WERE LOOKING FOR AN UPWARD REVISION TO 21 MR KAHAN SAID CITING STRONGERTHANEXPECTED CONSUMER SPENDING AND BUSINESS INVENTORY ACCUMULATION MR KAHAN FORECAST MODERATE ECONOMIC GROWTH FOR THE REMAINDER OF THE YEAR BUT NOWHERE NEAR THE 47 RATE RECORDED IN THE FORUTH QUARTER OF 1992 GROWTH IN THE 25TO3 RANGE WOULD BE ABOUT RIGHT HE SAID 9305240031 930524 BUSINESS BRIEF RR DONNELLEY & SONS CO COMPANY ACQUIRES SOFTCOPY TO INCREASE CAPACITY IN UTAH RR DONNELLEY & SONS CO CHICAGO SAID IT ACQUIRED SOFTCOPY INC A CLOSELY HELD COMPUTER DISKETTE REPLICATION AND FULFILLMENT COMPANY IN OREM UTAH DONNELLEY SAID THE ACQUISITION GIVES IT ADDED CAPACITY IN THE FASTGROWING UTAH VALLEY WHICH IT CHARACTERIZED AS ONE OF THE NATION'S EMERGING CENTERS FOR HIGHTECHNOLOGY PRODUCT DEVELOPMENT TERMS OF THE TRANSACTION WEREN'T DISCLOSED SOFTCOPY WHICH HAS ABOUT 200 EMPLOYEES PROVIDES COMPUTER DISKETTE REPLICATION INVENTORY MANAGEMENT KITTING AND ASSEMBLY ORDER PROCESSING AND DISTRIBUTION FOR COMPUTER HARDWARE AND SOFTWARE MANUFACTURERS DONNELLEY THE WORLD'S LARGEST PRINTING CONCERN HAS TARGETED THE COMPUTERDOCUMENTATION FIELD AS ONE WHERE IT WILL SEEK GROWTH 9305240030 930524 BUSINESS BRIEF PLEXUS RESOURCES CORP UTAH CONCERN PLANS MERGER WITH TWO CANADIAN FIRMS PLEXUS RESOURCES CORP SALT LAKE CITY SAID IT APPROVED A MERGER WITH TWO CANADIAN COMPANIES TO FORM A NEW MINING COMPANY PLEXUS PLANS TO MERGE WITH CMP RESOURCES LTD VANCOUVER BRITISH COLUMBIA AND ONTARIO CORP TORONTO TO FORM KINROSS GOLD CORP WHICH WILL BE BASED IN TORONTO UNDER THE MERGER PLEXUS SHAREHOLDERS WILL RECEIVE 18 SHARES OF KINROSS COMMON FOR EACH PLEXUS SHARE EXCHANGED A PLEXUS SPOKESMAN SAID THE PLANNED MERGER EXPECTED TO BE COMPLETED THURSDAY WILL SERVE TO STRENGTHEN THE THREE COMPANIES' MINING OPERATIONS 9305240029 930524 BUSINESS BRIEF KYOCERA CORP JAPANESE CONCERN POSTS DROP OF 15 IN PRETAX EARNINGS KYOCERA CORP A MAJOR JAPANESE MAKER OF CERAMIC PACKAGING FOR INTEGRATED CIRCUITS REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT DROPPED 15 IN THE YEAR ENDED MARCH 31 HIT BY WEAK DEMAND AND THE YEN'S STRENGTH PRETAX PROFIT WAS 4919 BILLION YEN 445 MILLION COMPARED WITH 5798 BILLION YEN A YEAR EARLIER KYOCERA SAID ITS BUSINESS ENVIRONMENT WILL REMAIN UNPREDICTABLE DURING THE CURRENT YEAR AS AN EXPECTED GRADUAL PICKUP IN THE ECONOMY IS OFFSET BY THE YEN'S RAPID APPRECIATION BUT THE COMPANY DIDN'T OFFER EARNINGS FORECASTS ON A CONSOLIDATED BASIS CONSOLIDATED RESULTS INCLUDE THOSE OF SUBSIDIARIES 9305240028 930524 COMMODITIES PLANTING DELAY CAUSED BY COLD WET WEATHER STIRS TRADERS' HOPES FOR A BULL MARKET IN CORN BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE NATION'S CORN CROP THIS YEAR IS LIKELY TO BE SMALLER THAN LAST YEAR'S RECORD YIELD BECAUSE OF PERSISTENTLY WET WEATHER THAT HAS DELAYED FARMERS' EFFORTS TO PLANT THEIR CROP MOREOVER IN MANY HIGHPRODUCTION CORNBELT AREAS THE CORN THAT FARMERS HAVE MANAGED TO PLANT ISN'T GERMINATING PROPERLY BECAUSE OF THIS SPRING'S UNUSUALLY COLD TEMPERATURES THIS PROBLEM LEADS TO SHALLOW ROOT STRUCTURES WHICH COULD MEAN ADDITIONAL DAMAGE TO THE CORN CROP IF TEMPERATURES SOAR LATER IN THE SUMMER AT THE CHICAGO BOARD OF TRADE WHERE FUTURES CONTRACTS ON CORN SOYBEANS AND OTHER GRAINS ARE TRADED THE EFFECT OF THE DELAYED PLANTINGS IS TO FILL TRADERS' HEADS WITH HOPES FOR A BULL MARKET BASICALLY THE WET COLD SPRING KEEPS THE MARKET ON PINS AND NEEDLES SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO IT LIMITS THE DOWNSIDE POTENTIAL OF CORN PRICES AND IT COULD CREATE A BULLISH ATMOSPHERE IF THERE WERE INDEED A HEAT OR DRYNESS CONCERN LATER IOWA AND ILLINOIS CORN PLANTINGS ARE BEHIND SCHEDULE IN ALL OF THE NATION'S MAJOR FARMING STATES INCLUDING THE TWO BIGGEST CORN PRODUCERS IOWA AND ILLINOIS THE PROBLEM IS PARTICULARLY ACUTE IN NORTHERN STATES SUCH AS NEBRASKA AND MINNESOTA WE'RE PLANTING 10 DAYS LATER THAN NORMAL INTO SOILS WETTER AND COLDER THAN NORMAL SAYS DON WITTLER WHO FARMS 1500 ACRES OF CORN SOYBEANS WHEAT AND SORGHUM NEAR TALMAGE NEB WHAT WE HAVE GOT PLANTED IS KIND OF YELLOWING NOT A GOOD COLOR BECAUSE IT'S SO COLD OUT HERE LAST YEAR US FARMERS PRODUCED RECORD PERACRE YIELDS IN CORN AND SOYBEANS AND ALSO POSTED A NEW RECORD FOR CORN PRODUCTION 948 BILLION BUSHELS LAST YEAR'S YIELDS OF 1314 BUSHELS OF CORN AN ACRE AND 376 BUSHELS OF SOYBEANS AN ACRE WERE POSSIBLE BECAUSE OF NEARLY IDEAL PLANTING CONDITIONS IN THE SPRING THERE ARE TWO ADAGES THAT FARMERS USE TO DESCRIBE THE ALLIMPORTANT PROGRESS OF THEIR SPRING PLANTINGS THE FIRST PLANT IN THE DUST AND THE BINS WILL BUST MEANS THAT BOUNTIFUL CROPS RESULT WHEN THE WEATHER FOR SPRING PLANTING IS WARM AND DRY THIS YEAR HOWEVER THE WEATHER HAS BEEN NEITHER RATHER RAIN HAS DRENCHED THE ENTIRE MIDWEST WELL PAST THE OPTIMAL PLANTING DATE FOR CORN NOW FARMERS ARE USING THEIR SECOND ADAGE TO DESCRIBE THE DAMGE THE STALLED PLANTINGS MAY INFLICT ON THIS YEAR'S PERACRE CORN YIELDS AFTER THE 20TH OF MAY WE LOSE A BUSHEL A DAY AS OF TODAY CORN IN THE NATION'S NO 1 CORNPRODUCING STATE IOWA IS ABOUT 60 PLANTED ANALYSTS SAY BY THIS TIME OF YEAR CORN IN IOWA IS NORMALLY ABOUT 95 PLANTED IN ILLINOIS THE NO 2 CORN STATE CORN IS ABOUT 85 PLANTED COMPARED WITH A FIVEYEAR AVERAGE OF ABOUT 96 PLANTED ON THIS DATE IN OTHER STATES THE PERCENTAGES OF PLANTINGS ARE ALSO BEHIND SCHEDULE CORN IN MISSOURI IS ONLY ABOUT 40 PLANTED COMPARED WITH 93 IN PREVIOUS YEARS IN NEBRASKA THE CROP IS ABOUT 65 PLANTED COMPARED WITH 95 OVER THE PAST FIVE YEARS AND IN MINNESOTA ABOUT 65 OF THE CROP IS IN THE GROUND COMPARED WITH A FIVEYEAR AVERAGE OF 88 ACROSS THE COUNTRY 30 TO 35 OF THE CORN CROP HAS YET TO BE PLANTED MR BASSE SAYS IT'S LATE ENOUGH NOW THAT THOSE ACRES WHERE PLANTING IS BEHIND ARE GOING TO SHOW REDUCED YIELDS THE NATION'S SOYBEAN CROP IS ALSO BEHIND SCHEDULE ALTHOUGH THE SLOW PROGRESS ISN'T AS MUCH OF A PROBLEM FOR THIS CROP SOYBEANS ARE TRADITIONALLY PLANTED LATER THAN CORN CONCERNS WON'T BEGIN TO MOUNT ABOUT SOYBEAN YIELDS UNLESS THE WET WEATHER CONTINUES PAST JUNE 15 THE OPTIMAL PLANTING DATE IN FACT FIELDS THAT ARE STILL TOO MOIST TO PLANT WITH CORN THIS WEEK MAY BE SWITCHED TO OTHER CROPS SUCH AS SOYBEANS OR SORGHUM I HAVE A COUPLE OF FIELDS I PLANNED FOR CORN THAT ARE JUST TOO MUDDY TO PLANT MR WITTLER SAYS I'M GOING TO SWITCH THEM TO SORGHUM TODAY THE AGRICULTURE DEPARTMENT WILL RELEASE A WEEKLY SURVEY OF PLANTING PROGRESS AT FARMS THROUGHOUT THE CORN BELT TRADERS AT THE CBOT WILL WATCH THE REPORT CLOSELY FOR SIGNS THAT PLANTING IS FURTHER BEHIND THAN EXPECTED ANY SUCH INDICATION ESPECIALLY FOR THE BIG CROPS IN IOWA AND ILLINOIS WOULD BE LIKELY TO PUSH CORN FUTURES PRICES HIGHER IN OTHER COMMODITY MARKETS THIS WEEK PRECIOUS METALS TRADERS AT NEW YORK'S COMMODITY EXCHANGE WILL CLOSELY WATCH PARTICIPATION IN THE GOLD MARKET BY MAJOR INVESTORS FOR A CLUE AS TO WHETHER GOLD CAN CONTINUE ITS REMARKABLE RALLY SINCE MARCH THE PRICE OF THE ACTIVELY TRADED JUNE GOLD FUTURES CONTRACT HAS RISEN NEARLY 15 THIS COMES AFTER TWO YEARS OF SLUGGISH TRADING IN PRECIOUS METALS AS GOLD PRICES HOVERED NOT FAR FROM THEIR ALLTIME LOWS BIG INVESTORS SUCH AS SIR JAMES GOLDSMITH AND GEORGE SOROS HAVE HELPED TO DRIVE THE RECENT RALLY BY BUYING GOLD THE MARKET IS NOW KEYING ON THE ACTIVITIES OF SUCH MAJOR PLAYERS LAST WEEK AN INCORRECT RUMOR THAT MR SOROS WAS LIQUIDATING HIS GOLD POSITIONS WAS ENOUGH TO PUSH PRICES DOWN TEMPORARILY BUT THE FOLLOWING DAY WHEN TRADERS LEARNED THAT THE RUMOR WAS FALSE GOLD PRICES RESUMED THEIR UPWARD CLIMB ANALYSTS SAY THE FACTORS AFFECTING SUPPLY AND DEMAND IN GOLD LOOK POSITIVE THESE FUNDAMENTALS THEY SAY POINT TO A CONTINUING UPWARD PRICE TREND WITH CORRECTIONS OCCURRING AS BIG INVESTORS TAKE PROFITS 9305240027 930524 MARKETING & MEDIA TIMES MIRROR TO BUY COMMUNITY PAPERS IN SOUTHERN CALIFORNIA LOS ANGELES TIMES MIRROR CO HAS AGREED TO ACQUIRE THE ASSETS OF TWO SUBSIDIARIES OF COAST COMMUNITY NEWS INC INCLUDING FIVE SMALLER NEWSPAPERS IN SOUTHERN CALIFORNIA THE LOS ANGELES MEDIA AND INFORMATION COMPANY DIDN'T DISCLOSE TERMS OF THE AGREEMENT A SPOKESMAN SAID THAT ALL OF THESE NEWSPAPERS WILL CONTINUE TO BE PUBLISHED AND THAT THEY WILL BE HELD BY THE COMPANY'S CALIFORNIA COMMUNITY NEWSPAPERS CORP SUBSIDIARY HE DECLINED TO COMMENT ON ANY STRATEGIC ISSUES INCLUDING WHETHER THE NEWSPAPERS WILL BE MARKETED COOPERATIVELY WITH THE PREDOMINANT DAILY PAPER IN THE REGION TIMES MIRROR'S LOS ANGELES TIMES ITS CIRCULATION IS ABOUT 1380000 COPIES DAILY WITH ABOUT 15 MILLION SOLD ON SUNDAY THE NEWSPAPERS TO BE ACQUIRED INCLUDE THE DAILY PILOT SERVING THE ORANGE COUNTY CALIF COASTAL COMMUNITIES OF COSTA MESA AND NEWPORT BEACH THE HUNTINGTON BEACH INDEPENDENT SERVING THE ORANGE COUNTY COMMUNITY OF HUNTINGTON BEACH AND THE GLENDALE NEWS PRESS THE BURBANK LEADER AND THE FOOTHILL LEADER WHICH SERVE SOUTHERN CALIFORNIA'S SAN GABRIEL VALLEY IN RECENT MONTHS THE LOS ANGELES TIMES HAS INCREASINGLY PUSHED TO BECOME MORE COMPETITIVE IN THE GREATER LOS ANGELES AREA INCLUDING MARKETS WHERE SOME OF THE NEW ACQUISITIONS ARE LOCATED IT PREVIOUSLY HAD BEEFED UP ITS EDITION IN ORANGE COUNTY MAJOR COMPETITORS FOR THE TIMES IN THE AREA INCLUDE THE ORANGE COUNTY REGISTER OWNED BY FREEDOM NEWSPAPERS INC OF SANTA ANA AND THE DAILY NEWS THAT NEWSPAPER BASED IN WOODLAND HILLS IS OWNED BY TOWER MEDIA INC WHICH IS SUBSTANTIALLY CONTROLLED BY WASHINGTON BUSINESSMAN JACK KENT COOKE TIMES MIRROR ALSO PUBLISHES NEWSDAY IN LONG ISLAND NY THE BALTIMORE SUN NEWSPAPERS AND THE HARTFORD COURANT IN CONNECTICUT THE COMPANY ALSO HAS INTERESTS IN BROADCAST AND CABLE TELEVISION AND IN OTHER PUBLISHING CONCERNS 9305240026 930524 TRAVEL OFFICE TROUBLE CASTS A SHADOW ON CLINTON THE PRESS AND SEVEN STAFFERS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN ONE STROKE THE FIRING OF THE WHITE HOUSE TRAVEL OFFICE HAS TAINTED THE ADMINISTRATION THE PRESS CORPS AND THE SEVEN EMPLOYEES OF THE OFFICE THIS COULD HAVE BEEN A POSITIVE STORY FOR PRESIDENT CLINTON LOOKING TO REDUCE COSTS HIS AIDES FOUND AT LEAST INEFFICIENCY AT THE TRAVEL OFFICE THEN JETTISONED THE ENTIRE STAFF BUT ONCE AGAIN THE WHITE HOUSE HAS BEEN TRIPPED UP BY NOT QUITE UNDERSTANDING HOW WASHINGTON WORKS AN AUDIT COMMISSIONED BY THE WHITE HOUSE SHOWED THAT AN OFFICE HANDLING ROUGHLY 11 MILLION A YEAR MONEY THAT THE MEDIA PAY FOR TRAVEL WITH THE PRESIDENT AND OTHER ACCOMMODATIONS HAD POOR RECORD KEEPING HAD NO WRITTEN CONTRACT WITH ULTRAIR INC WHICH PROVIDED THE CHARTER AIRPLANE FOR THE PRESS AND ENGAGED IN QUESTIONABLE RECORDING OF PETTYCASH TRANSACTIONS THE WHITE HOUSE REACTION WAS BUTTRESSED BY A FEDERAL BUREAU OF INVESTIGATION DETERMINATION THAT A FURTHER CRIMINAL INVESTIGATION IS WARRANTED BUT IN TRYING TO JUSTIFY THEIR ACTIONS WHITE HOUSE OFFICIALS MAY HAVE PREMATURELY SPOKEN OF CRIMINAL WRONGDOING PUTTING A CLOUD OVER ALL SEVEN FORMER EMPLOYEES BEFORE A FULL INVESTIGATION HAD TAKEN PLACE MOREOVER THE FBI ACTIONS HAVE RAISED SOME EYEBROWS BECAUSE THEY COME AT A TIME WHEN THE BUREAU'S DIRECTOR WILLIAM SESSIONS IS STRUGGLING TO CONVINCE THE NEW ADMINISTRATION TO LET HIM KEEP HIS JOB MORE BROADLY MR CLINTON'S AIDES FAILED TO GRASP THE DEEPROOTED RELATIONSHIP BETWEEN THE TRAVEL OFFICE AND THE PRESS CORPS IT WAS PRESS MONEY THAT MAY HAVE BEEN MISHANDLED BUT THERE WEREN'T MANY COMPLAINTS FROM THE PRESS ON THE CONTRARY BILLY DALE THE TRAVEL OFFICE DIRECTOR AND HIS TROOPS HAVE FREQUENTLY BEEN THE BEST FRIENDS REPORTERS HAVE ON THE ROAD OVER THE YEARS THE STAFF HAS MOVED PEOPLE AND EQUIPMENT TO IMPOSSIBLE PLACES LARGELY ON TIME MANY JOURNALISTS SUSPECT THAT ANY FUNDS UNACCOUNTED FOR IN THE KPMG PEAT MARWICK AUDIT WERE SLIPPED TO BELLMEN BUS DRIVERS AND BAGGAGE HANDLERS AROUND THE WORLD TO MAKE SURE THE PRESS GOT WHAT IT NEEDED ONE VETERAN REPORTER TELLS OF PAYING 200 FOR TWO RUGS WORTH 10000 DURING A TRIP TO CHINA SEVERAL YEARS AGO HE SAYS THAT HE PAID NO DUTIES OR TAXES ON THE RUGS AND THAT MR DALE LET HIM PUT THE RUGS ON THE PRESS PLANE HOME MANY REPORTERS HAVE SIMILAR TALES TO TELL ENTER THE CLINTON ADMINISTRATION EVEN THE TRAVEL OFFICE WORKERS HAVE QUIETLY ACKNOWLEDGED THEY WERE THE LIKELY TARGETS FOR DISMISSAL BECAUSE THEY SERVE AT THE PLEASURE OF THE PRESIDENT IT WOULD HAVE BEEN A ONEDAY STORY EXCEPT THAT WHEN THE CLINTON OFFICIALS FIRED THE PRESS'S BEST FRIENDS THEY CALLED ON THEIR OWN PALS THE PRESIDENT TURNED THE OFFICE OVER TO CATHERINE CORNELIUS A 25YEAROLD DISTANT COUSIN TELEVISION PRODUCER HARRY THOMASON A FRIEND OF THE PRESIDENT'S AND HIS PARTNER APPEARED TO SEEK BUSINESS FOR THEIR OWN CHARTER CONSULTING BUSINESS AND WHOM DID THE WHITE HOUSE GET TO HELP OUT IN THE INTERIM BUT WORLD WIDE TRAVEL INC A LITTLE ROCK ARK AGENCY WHOSE OWNERS HAVE CONTRIBUTED TO MR CLINTON IN THE PAST AND WHOSE BILLING PRACTICES ON THE PRESIDENTIAL CAMPAIGN HAVE BEEN CRITICIZED FURTHER DAVID WATKINS THE DIRECTOR OF ADMINISTRATION IN THE WHITE HOUSE HAS CLOSE TIES TO WORLD WIDE IT WAS ONCE A CLIENT OF HIS WHEN HE WAS IN ADVERTISING AND HE IS FRIENDS WITH THE OWNERS IT WAS MR WATKINS WHO FIRED THE TRAVEL OFFICE IT ALL HAS THE SMELL OF PREMEDITATION MS CORNELIUS WHO HAD USED WORLD WIDE WHEN HANDLING PRESS TRAVELING ARRANGEMENTS DURING THE CAMPAIGN WROTE A MEMO TO MR WATKINS IN FEBRUARY SUGGESTING THAT SIX OF THE SEVEN TRAVEL OFFICE WORKERS BE FIRED AND THAT SHE AND A FRIEND BE PLACED IN CHARGE HER MEMO INFURIATED JOURNALISTS BY CONTENDING THAT THE TRAVEL OFFICE WAS OVERLY PROPRESS THIS SHOULDN'T BE OVERSHADOWING MR CLINTON'S FIGHT FOR HIS BUDGET OR HEALTHCARE OVERHAUL OR BOSNIAN POLICY BUT THESE EVENTS LIKE THE HAIRCUT BY CHRISTOPHE OF BEVERLY HILLS ON THE RUNWAY IN LOS ANGELES HAVE RAISED ANEW QUESTIONS OF WHETHER MR CLINTON SHARES THE VALUES OF MOST AMERICANS AT A TESTY BRIEFING FRIDAY GEORGE STEPHANOPOULOS THE COMMUNICATIONS DIRECTOR REFUSED TO CONCEDE THAT THESE CIRCUMSTANCES PRESENTED A PERCEPTION PROBLEM BUT LATER WORLD WIDE TRAVEL WAS REMOVED FROM ANY INVOLVEMENT IN WHITE HOUSE TRAVEL ARRANGEMENTS MEANWHILE THE PRESS PLANE THAT WAS ARRANGED BY THE NEW TRAVEL OFFICE EARLIER IN THE WEEK WAS DELAYED FOR TWO HOURS ON ITS MAIDEN VOYAGE SATURDAY BECAUSE OF A LEAKY FUEL LINE STILL MEMBERS OF THE PRESS CORPS DIDN'T COVER THEMSELVES IN GLORY WHITE HOUSE AIDES FUME AT WHAT THEY SAW AS UNFAIR TREATMENT BY REPORTERS WHO REACTED EMOTIONALLY TO THE FIRINGS AND WERE MORE CONCERNED ABOUT THEIR FRIENDSHIPS AND TRAVEL ACCOMMODATIONS THAN WEEDING OUT POSSIBLE CORRUPTION THE MAIN PRESS ARGUMENT WAS WHY HAVE ALL SEVEN EMPLOYEES BEEN PLACED UNDER THE SAME CLOUD MOREOVER THERE WERE CLEAR SIGNS THAT THE FIASCO HAS COOLED THE ALREADY CHILLY RELATIONS BETWEEN THE ADMINISTRATION AND THE PRESS CORPS WHEN MR CLINTON WAS ASKED ABOUT THE SAFETY OF THE CHARTER PLANE THAT THE PRESS USED SATURDAY HE REPLIED IT'S NOT MY JOB THE PRESS CAN TAKE CARE OF THEMSELVES AN EXCHANGE FRIDAY BETWEEN MR STEPHANOPOULOS AND BRIT HUME THE WHITE HOUSE CORRESPONDENT FOR ABC NEWS EXEMPLIFIED THE TENSION MR HUME NOTED THAT THE CLINTON ADMINISTRATION SAID IT WAS GOING TO OBSERVE THE ABSOLUTE HIGHEST MOST SCRUPULOUS ETHICAL STANDARDS THAT ALWAYS HAS INCLUDED QUESTIONS OF APPEARANCE ISN'T IT MANIFESTLY CLEAR THAT FOR THIS CHAP MR WATKINS TO TURN TO THIS FORMER CLIENT OF HIS FOR THE BUSINESS EVEN ON AN INTERIM BASIS CREATES AN OBVIOUS APPEARANCE PROBLEM JUST AN APPEARANCE PROBLEM MR STEPHANOPOULOS WOULD RESPOND ONLY THAT THE ADMINISTRATION WILL CONTINUE TO REVIEW THE SITUATION GEORGE CONDON THE PRESIDENT OF THE WHITE HOUSE CORRESPONDENTS ASSOCIATION DEFENDS HIS COLLEAGUES AS PROFESSIONALS BUT SAYS THE HISTORY SHOWS THAT A PRESS CORPS THAT HAS BEEN AVOIDED AND IGNORED AND TREATED IN A WAY THAT IS NIXONIAN IS NOT GOING TO CUT THE PRESIDENT ANY BREAKS 9305240025 930524 GREEN' PROTECTIONISM CLINTON'S HIDDEN TARIFF BY KARL D JACKSON WITH LITTLE DEBATE AND NO PUBLICITY THE HOUSE WAYS AND MEANS COMMITTEE LAST WEEK INSERTED INTO THE CLINTON TAX BILL THE FIRST GENERALIZED AND PERMANENT INCREASE IN US TAXATION OF FOREIGN MANUFACTURED PRODUCTS SINCE THE SMOOTHAWLEY ACT OF 1930 THE RESULTS COULD BE DISASTROUS THIS NEW IMPORT TAX IS BEING PUT FORWARD AS A KIND OF SUPPLEMENT TO THE PRESIDENT'S ENERGY TAX AS SUCH IT MARKS THE EMERGENCE OF A NEW AND DANGEROUS COALITION OF PROTECTIONISTS AND ENVIRONMENTALISTS A COALITION THAT COULD IF IT GETS ITS WAY RAISE THE PRICE OF CONSUMER GOODS SPARK TRADE RETALIATION FROM FOREIGN COUNTRIES AND ADD A THICK LAYER OF BUREAUCRATIC INEFFICIENCY TO THE ECONOMY THE PRESIDENT'S ENERGY TAX BEGAN AS A DOMESTIC DEVICE AIMED AT PRODUCING LARGE AMOUNTS OF REVENUE WHILE PENALIZING AMERICANS FOR CONSUMING PRODUCTS THAT USE HIGH AMOUNTS OF ENERGY FROM IRON ORE TO EVAPORATED MILK AMERICANS WOULD PAY MORE FOR PRODUCTS DEPENDING ON THE AMOUNT OF ENERGY NEEDED TO PRODUCE THEM BUT NOW THE ENERGY TAX DOESN'T STOP THERE UNDER THE NEW PROVISION GOODS FROM ABROAD WOULD BE TAXED ACCORDING TO ENERGY CONTENT IN THE SAME WAY THAT AMERICANMADE GOODS WOULD BE TAXED ACCORDING TO THE NUMBER OF BTUS BRITISH THERMAL UNITS OF ENERGY USED TO PRODUCE THEM THE TAX BILL NOW READS THERE IS HEREBY IMPOSED A TAX ON ANY TAXABLE HIGHENERGY PRODUCT ENTERED INTO THE UNITED STATES FOR CONSUMPTION USE OR WAREHOUSING LIKE CONGRESS IN 1930 CONGRESS IN 1993 MAY NOT REALIZE WHAT IT IS SETTING IN MOTION ALL TARIFFS OR BORDER TAXES DEPRESS TRADE AND ECONOMIC GROWTH THE SMOOTHAWLEY TARIFF WAS DESIGNED TO SAVE AMERICAN JOBS BY KEEPING OUT FOREIGN GOODS THAT COULD BE PRODUCED MORE CHEAPLY ABROAD BUT THINGS DID NOT WORK OUT AS PLANNED OTHER COUNTRIES RETALIATED GLOBAL TRADE PLUMMETED BY 70 192933 AND THE WORLD BECAME MIRED IN THE GREAT DEPRESSION POSTWAR INTERNATIONAL LEADERS VOWED NEVER AGAIN AND US PRESIDENTS EVER SINCE HAVE LED THE WORLD IN NEGOTIATING TARIFF REDUCTION AGREEMENTS EXPANDING WORLD TRADE EXPONENTIALLY MR CLINTON'S TAX BILL REVERSES THAT TREND DRAMATICALLY THE IMPORT ENERGY TAX WOULD APPLY TO ANY PRODUCT THAT ON AVERAGE HAS MORE THAN 2 OF ITS VALUE ATTRIBUTABLE TO ENERGY INPUTS WHICH MEANS VIRTUALLY ALL MANUFACTURED PRODUCTS PROPONENTS HAVE OFFERED TARIFF ESTIMATES FOR ONLY SELECTED INDUSTRIES BUT THESE ARE SCARY ENOUGH ASSUMING THE COST OF THE TAX IS PASSED ALONG THE PRICES OF FOREIGN PRODUCTS WOULD INCREASE SUBSTANTIALLY 12 FOR IRON ORE 16 FOR INDUSTRIAL GASES 16 FOR HYDRAULIC CEMENT SO FAR NO REFERENCE HAS BEEN MADE TO THE TAX'S IMPACT ON SUCH VALUEADDED GOODS AS AUTOMOBILES AND CONSUMER ELECTRONICS BUT IF THE AVERAGE RATE OF PRICE INCREASE IS LIMITED TO 25 THIS WOULD AMOUNT TO A 50 INCREASE IN THE CURRENT TARIFF LEVEL WHICH IS NOW BELOW 5 ACCORDING TO INDUSTRY SOURCES THE BTU TAX WILL RAISE PRODUCT PRICES EG GASOLINE PAPER FERTILIZER BY 5 TO 7 ON AVERAGE THE ADMINISTRATION PEGS THE PRICE RISE MUCH LOWER BUT EVEN ITS UPPERRANGE ESTIMATES EXCEED THE PROFIT MARGINS IN SEVERAL INDUSTRIES SPELLING NOT ONLY PRICE INFLATION FOR CONSUMERS BUT ALSO PLANT CLOSINGS AND EVEN IF THE ENERGY TAX RESULTS IN ONLY MODERATE PRICE INFLATION THIS YEAR NOTHING PRECLUDES CONGRESS OR FOREIGN LEGISLATURES WITH SIMILAR PLANS FROM RAISING THE RATE EACH YEAR THIS WOULD CONSTRICT THE GROWTH OF WORLD TRADE WHILE TRANSFORMING AN ENVIRONMENTAL TAX INTO A DISGUISED BUT PERENNIAL CASH COW WHAT OTHER EFFECTS WOULD THE IMPORT ENERGY TAX HAVE UNEMPLOYMENT FOR ONE THE EUROPEAN COMMUNITY AND PERHAPS JAPAN WILL HARDLY SIT STILL FOR IT THEY WILL RETALIATE EITHER BY RAISING TARIFFS AGAINST AMERICAN PRODUCTS OR BY DEMANDING RECIPROCAL TARIFF INCREASES FOR INDUSTRIES THEY WOULD LIKE TO PROTECT AMERICA TODAY IS MORE DEPENDENT THAN EVER ON EXPORTS FOR JOBS HENCE ANY DECLINE IN INTERNATIONAL TRADE FORFEITS JOBS AT HOME AND TRADE RETALIATION WILL BE EASY THAT PRESIDENT CLINTON AND VICE PRESIDENT GORE ARE RAISING TAXES UNDER THE ENVIRONMENTAL BANNER WILL NOT PREVENT PROTECTIONISTS IN OTHER COUNTRIES FROM DEMANDING RECIPROCAL ACTION FROM THEIR LEGISLATURES IN THE NAME OF OTHER CAUSES SUCH AS PROTECTING FRENCH CULTURE FROM FOREIGN INFLUENCE BUT THE ENERGY CAUSE MAY SUFFICE WHY SHOULDN'T JAPAN INSIST THAT AMERICAN MANUFACTURED PRODUCTS PAY A JAPANESE BTU TAX SINCE JAPANESE MANUFACTURING PROCESSES SHOW A HIGHER ENERGY EFFICIENCY A JAPANESE ENERGY TAX COULD PROTECT JAPANESE COMPANIES FROM OUTSIDE COMPETITION AND DO IT ALL IN THE NAME OF ENVIRONMENTALISM THE IMPORT ENERGY TAX IS ALSO AN ADMINISTRATIVE NIGHTMARE JUDGMENTS ABOUT WHICH PRODUCTS USE A CERTAIN TAXABLE PERCENTAGE OF ENERGY INPUT WOULD BE MADE UNILATERALLY BY WASHINGTON UNLESS A COMPANY PROVIDED FACTORYSPECIFIC CONFIDENTIAL BUSINESS INFORMATION TO ESTABLISH A MORE PRECISE BASELINE IS THERE ENOUGH OFFICE SPACE IN WASHINGTON TO HOUSE THE BUREAUCRATS AND LAWYERS WHO WOULD BE HAGGLING OVER THE ENERGY CONTENT OF EVERY MANUFACTURED PRODUCT IN THE WORLD WHEN CANDIDATES CLINTON AND GORE SAID THAT ENVIRONMENTALISM WOULD CREATE JOBS FOR AMERICANS FEW DREAMED THAT SUCH A BUREAUCRATIC BONANZA IS WHAT THEY HAD IN MIND IN SHORT BUREAUCRATS WILL BE THE WINNERS THE LOSERS WILL BE THE AMERICAN PEOPLE WHO WILL PAY MORE FOR ALMOST EVERYTHING AND THE WORLD TRADING SYSTEM ON WHICH STATESMEN HAVE LABORED SO HARD FOR 50 YEARS A WORLD ON THE VERGE OF A NEW AND DRAMATIC EXPANSION OF WEALTH THROUGH TRADE WILL HAVE BEEN THWARTED BY A GREENER BUT NO LESS PERNICIOUS FORM OF PROTECTIONISM MR JACKSON IS A FELLOW AT THE HUDSON INSTITUTE A RESEARCH ASSOCIATE AT GEORGE WASHINGTON UNIVERSITY AND MANAGING DIRECTOR OF FX CONCEPTS A FOREIGNEXCHANGE FIRM 9305240023 930524 GLOBAL VIEW THE WORLD WAILS WHILE CLINTON FLAILS BY GEORGE MELLOAN EUROPEAN COMMISSION ECONOMISTS IN BRUSSELS ARE REEXAMINING THEIR JANUARY FORECASTS FOR THE EUROPEAN COMMUNITY'S ECONOMIC PERFORMANCE THIS YEAR THEY DON'T LIKE WHAT THEY SEE THAT SMIDGEN OF GROWTH THEY PREDICTED FIVE MONTHS AGO NOW LOOKS LIKE A DECLINE THE ENTIRE EC WITH ITS 350 MILLION SOULS IS SLIDING INTO RECESSION THE MOST DRAMATIC CASE IS GERMANY WHERE THE OUTLOOK GROWS DARKER WITH EACH NEW ECONOMIC FORECAST GERMANY'S GOVERNMENT OVEREXTENDED THE COUNTRY'S RESOURCES TO FINANCE REUNIFICATION BECAUSE OF GERMANY'S SIZE IT IS PULLING ITS NEIGHBORS DOWN AS WELL FRANCE AND ITALY ARE ON THE BRINK OF DECLINE EVEN ENGLAND WHICH PULLED IN SOME FRESH BUSINESS FROM ABROAD WITH A SHARP POUND DEVALUATION LAST YEAR HAS JUSTIFIABLE DOUBTS ABOUT WHETHER THE RESULTING MILD RECOVERY IS SUSTAINABLE UP UNTIL RECENTLY EUROPEANS AND THE SIMILARLY DISCOMFITED JAPANESE WERE HOPING THAT A STRONG RECOVERY IN THE US WOULD PULL THEM OUT OF THEIR SLUMPS THE US BUSINESS CYCLE WAS ROLLING SOMEWHAT AHEAD OF THE REST OF THE WORLD AND APPEARED TO BE IN A FAIRLY IMPRESSIVE RECOVERY PHASE BY THE END OF LAST YEAR BUT WHILE THAT THEORY HAD A CERTAIN TIDINESS THERE IS NOW LESS CERTAINTY AMONG EUROPEANS AND JAPANESE THAT THE BIG US LOCOMOTIVE WILL GIVE THE WORLD ECONOMY ITS NEEDED TUG INDEED RISING GOLD AND COMMODITY PRICES ACCOMPANYING RELATIVELY WEAK GROWTH HINT AT A POSSIBLE ONSET OF STAGFLATION IN THE US IT SEEMS POSSIBLE THAT THE BIG LOCOMOTIVE HAS SOME FUNDAMENTAL PROBLEMS THAT WEREN'T EVIDENT A FEW MONTHS AGO IT IS DIFFICULT TO ACCURATELY MEASURE THE BURDENS THAT ARE SLOWING IT DOWN BUT THERE IS PLENTY OF ANECDOTAL EVIDENCE OF THEIR EXISTENCE THERE CAN BE LITTLE DOUBT THAT REREGULATION OF THE AMERICAN ECONOMY FOR EXAMPLE IS RAISING COSTS FOR BUSINESSES LARGE AND SMALL PAPERWORK DEMANDS ON HIRING PRACTICES HAVE MOUNTED FOR EXAMPLE FEDERAL LAW NOW FORBIDS DISCRIMINATION AGAINST THE DISABLED BUT REQUIRES IT AGAINST ILLEGAL ALIENS HIRING RULES PARTICULARLY THOSE THAT CARRY PENALTIES HAVE ONE PRIMARY EFFECT THEY DISCOURAGE HIRING IN THE FINANCIAL SECTOR BIG AMERICAN BANKS NOW MAKE MOST OF THEIR MONEY EITHER AS TRADERS OR AS BUYERS OF FEDERAL DEBT WHICH THEY ARBITRAGE AGAINST THEIR OWN CHEAP BORROWINGS FROM THE FEDERAL RESERVE BANK CAPITAL REQUIREMENTS GIVE FEDERAL DEBT A FREE RIDE BUSINESS LOANS HAVE BECOME A SIDELINE THE 1990 CLEAN AIR ACT ADDED HUGE ECONOMIC COSTS WHILE AMERICAN ENVIRONMENTAL LAW IN THEORY REQUIRES COSTBENEFIT ASSESSMENTS THE RECORD SUGGESTS NO ONE TAKES THAT VERY SERIOUSLY LAND USE RESTRICTIONS ALSO HAVE SPREAD NOT ONLY INFRINGING ON PROPERTY RIGHTS BUT TYING UP LAND THAT MIGHT BE USED PRODUCTIVELY THE 1990 DARMANCONGRESS TAX BOOST WITH ITS 165 BILLION PRICE TAG DID NOTHING FOR THE US ECONOMY EITHER THE US WENT INTO RECESSION AND THE FEDERAL BUDGET DEFICIT DIDN'T CONTRACT IT EXPANDED ELSEWHERE ON THE TAX FRONT IT BECOMES MORE AND MORE OBVIOUS THAT THE HIGH CAPITAL GAINS RATE HAS CONTRIBUTED TO THE SLUGGISHNESS IN REAL ESTATE MARKETS AND THE DECLINE IN RISK INVESTMENT WHICH SUPPLIES THE GROWTH IMPETUS OF ANY ECONOMY WHAT IS TRULY REMARKABLE IS THAT AMERICANS SEEM TO HAVE ELECTED A PRESIDENT WHO PLANS MORE OF THE SAME IN SPADES THE VOTERS ARE TO BE FORGIVEN BECAUSE MR CLINTON IN HIS CAMPAIGN SPEECHES TOLD THEM MORE OR LESS THE OPPOSITE OF WHAT HE IS NOW PROPOSING IN HIS PLAN TO FIX THE ECONOMY IT WAS INDEED THE ECONOMY THAT SANK GEORGE BUSH BUT IT IS HARD TO SEE HOW A 250 BILLION CLINTON TAX BILL IS AN IMPROVEMENT OVER DARMAN'S 165 BILLION WHEN IT COMES TO REREGULATION CLEARLY WE AIN'T SEEN NOTHING YET INDUSTRIAL POLICY WILL TAKE THE AUTO INDUSTRY UNDER ITS WING TO SHIELD IT FROM COMPETITION WHICH MAY EXPLAIN WHY RED POLING OF FORD AN OTHERWISE SENSIBLE EXECUTIVE CAME OUT OF A WHITE HOUSE MEETING PRAISING THE PRESIDENT LAST WEEK THE ADMINISTRATION PONDERS AIRLINE REREGULATION WHICH WILL HAVE SIMILAR ANTICOMPETITIVE CONSEQUENCES PRESCRIPTION DRUGS AND HEALTH CARE DELIVERY MAY GET BELIEVE IT OR NOT PRICE CONTROLS THE KIND OF MEDICINE THAT PRETTY MUCH WRECKED THE US ECONOMY IN THE 1970S MEMORIES ARE SHORT ENERGY PRICES WENT DOWN WHEN THE LAST PRICE CEILINGS FINALLY CAME OFF IN 1981 WHICH TELLS YOU SOMETHING ABOUT WHAT HAPPENS WHEN THE FEDS RIG PRICES IF THE EUROPEANS AND JAPANESE FEEL A BIT NERVOUS ABOUT THE POWER OF THE AMERICAN LOCOMOTIVE IT MAY BE BECAUSE MR CLINTON'S POLICIES DESIGNED TO FIX THE ECONOMY SOUND MORE LIKE A MEANS TO PUT IT INTO A FIX IF HIS PROPOSALS ARE WRONGHEADED THE SALES TALKS FOR THEM ARE DOWNRIGHT INTOLERABLE BUDGET DIRECTOR LEON PANETTA SAID ON CNN LAST WEEK THAT THE TAX INCREASES AND SPENDING CUTS ARE ABOUT AN EVEN MATCHUP IF HE REALLY BELIEVES THAT HE MUST BE THE ONLY ONE IN THE UNIVERSE WHO DOES AN EXAMINATION OF THE SOCALLED SPENDING CUTS TURNS UP MOSTLY SMOKE AND MIRRORS OR WORSE TREASURY'S PLAN TO SAVE MONEY BY SHORTENING MATURITIES ON THE DEBT IT ISSUES FOR EXAMPLE IS A SHORTTERM SAVING WITH HIGH LONGTERM COSTS WHILE MR CLINTON'S FLAILING ABOUT MAY MAKE EUROPEAN AND JAPANESE POLITICIANS NERVOUS THEY ARE RELUCTANT TO CRITICIZE THAT IS NO DOUBT BECAUSE THERE ARE FEW POLITICIANS IN THE WORLD WHO DON'T AGREE THAT THEIR PROBLEMS CAN BE SOLVED WITH MORE REVENUES AND THAT NEW TAXES OR A BOOST IN TAX RATES WILL AUTOMATICALLY PRODUCE THOSE REVENUES MORE TO THE POINT A LOT OF POLITICIANS AND ECONOMISTS FOR THAT MATTER LOOK UPON THE GLOBAL ECONOMY AS AN ARENA OF COMBAT TO THE EXTENT AN AMERICAN PRESIDENT WEAKENS THE US ECONOMY OTHER ECONOMIES WILL SUPPOSEDLY BECOME RELATIVELY MORE COMPETITIVE WITH AMERICA ACCORDING TO THIS VIEW THERE MAY BE SOME TRUTH TO THAT BUT IN THE END ALL PEOPLE OF THE GLOBE BENEFIT WHEN THE MAJOR NATIONAL ECONOMIES ARE GUIDED BY INTELLIGENT POLICIES AND THEY SUFFER FROM THE OPPOSITE ONE HOPEFUL SIGN IS THAT PRESIDENT CLINTON IS FACING A REVOLT FROM WITHIN HIS OWN PARTY SOME DEMOCRATS IN CONGRESS ARE JOINING WITH REPUBLICANS TO DEFEAT HIS ENERGY TAX ON THE WHOLE THIS IS BECAUSE REGIONAL INTERESTS ARE AFFECTED MAINLY IN THE OIL STATES AND NOT BECAUSE OF MACROECONOMIC ANALYSIS BUT RESISTANCE IS WELCOME NONETHELESS HOWEVER IT WILL BE ONLY A MARGINAL GAIN IF CONGRESS SEIZES TOTAL CONTROL OF ECONOMIC POLICY FROM THIS INEPT ADMINISTRATION AS THE RECORD OF RECENT YEARS WILL ATTEST CONGRESS IS ILLSUITED TO THE TASK OF COHERENT POLICY MAKING FOR A SCARY LESSON IN LEGISLATIVE RULE TAKE A LOOK AT ITALY THIS SPRING EUROPEANS ARE LOOKING ALL AROUND AT ITALY GERMANY THE US IF THEY DON'T FEEL CHEERFUL IT'S UNDERSTANDABLE 9305240022 930524 TAIWAN'S ECONOMIC GROWTH TAIPEI TAIWAN'S ECONOMIC GROWTH IN THE FIRST QUARTER WAS AN ANNUALIZED INFLATIONADJUSTED 62 DOWN FROM THE PREVIOUS ESTIMATE OF 64 IN FEBRUARY THE DIRECTORATE GENERAL OF BUDGET ACCOUNTING AND STATISTICS SAID THE AGENCY ATTRIBUTED THE LOWERTHANEXPECTED GROWTH TO A WEAK ECONOMIC RECOVERY IN THE US AND SLUGGISH ECONOMIC GROWTH IN JAPAN AND EUROPE WHICH HURT TAIWAN'S EXPORTS 9305240021 930524 EC MINISTERS REJECT CHANGES ON CURRENCIES OFFICIALS AGREE TO APPLY RULES MORE RIGOROUSLY ADJUST RANGES QUICKLY BY BOB HAGERTY STAFF REPORTER OF THE WALL STREET JOURNAL KOLDING DENMARK EUROPEAN COMMUNITY FINANCE MINISTERS MEETING IN A STATELY BRICK HOTEL THAT ONCE SERVED AS A SANITORIUM FOUND NO MIRACLE CURES FOR CURRENCY TURMOIL DURING AN INFORMAL GATHERING FRIDAY AND SATURDAY MOST OF THE MINISTERS REJECTED THE IDEA OF MAJOR CHANGES IN THE RULES OF THE EC'S 14YEAROLD EXCHANGE RATE MECHANISM WHICH LIMITS FLUCTUATIONS AMONG PARTICIPATING CURRENCIES INSTEAD MOST AGREED THAT THE SYSTEM'S RULES SHOULD BE APPLIED MORE RIGOROUSLY AND THAT CURRENCY TRADING RANGES SHOULD BE ADJUSTED QUICKLY WHEN IT BECOMES CLEAR THAT THEY ARE OUT OF LINE WITH ECONOMIC REALITY THERE ARE NO GREAT REFORMS IN THE PIPELINE SAID JACQUES DELORS PRESIDENT OF THE EC'S EXECUTIVE COMMISSION WHO ATTENDED THE TALKS HIS ASSESSMENT WAS IN LINE WITH THAT OF REPORTS BY SENIOR EC MONETARY OFFICIALS AND CENTRAL BANK GOVERNORS MADE PUBLIC DURING THE MEETING THE MOOD AT THE MEETING HELD IN ROOMS OVERLOOKING A MISTY FJORD WAS GENERALLY RELAXEDREFLECTING RELIEF THAT DANISH VOTERS LAST WEEK APPROVED THE MAASTRICHT TREATY BUT STATEMENTS FROM MINISTERS AND OFFICIALS UNDERLINED PERSISTING DISCORD OVER HOW TO ACHIEVE THE TREATY'S GOAL OF MONETARY UNION BY 1999 THE RECENT WOBBLINESS OF THE ERM A FORERUNNER OF MONETARY UNION HAS DEEPENED DOUBT OVER THE FEASIBILITY OF THAT GOAL AFTER FIVE YEARS OF REMARKABLE STABILITY THE ERM BEGAN TO COME UNHINGED IN SEPTEMBER AS CURRENCY TRADERS LOST FAITH IN EC MEMBERS' ABILITY TO MOVE TOWARD SIMILAR ECONOMIC PERFORMANCES A PREREQUISITE FOR APPROACHING A SINGLE CURRENCY SINCE SEPTEMBER THE ERM HAS LURCHED THROUGH A SERIES OF DEVALUATIONS OF THE WEAKER CURRENCIES TWO MEMBER STATES B RITAIN AND ITALY HAVE PULLED THEIR CURRENCIES OUT OF THE ERM'S EMBRACE AND LET THEM GO INTO FREEFALL BRITISH OFFICIALS HAVE REPEATEDLY DECLARED THAT THE ERM IS UNDERMINED BY FAULT LINES BOTH IRELAND AND SPAIN WHICH HAVE DEVALUED THEIR CURRENCIES BUT KEPT THEM WITHIN THE CONSTRAINTS OF THE ERM HAVE PROTESTED THAT MEMBERS SHOULD BAND TOGETHER MORE FIRMLY TO RESIST FOREIGNEXCHANGE SPECULATORS BUT OTHER MEMBERS WERE UNWILLING TO PROVIDE SUCH COMFORT OVER THE WEEKEND EACH COUNTRY HAS TO SOLVE ITS OWN DOMESTIC PROBLEMS SAID JOHANN EEKHOFF A SENIOR GERMAN ECONOMICS MINISTRY OFFICIAL HE SAID EC MEMBER STATES COULD LEARN FROM ONE ANOTHER AND TRY TO COORDINATE POLICIES BUT ADDED IT'S VERY DIFFICULT TO ORGANIZE COOPERATION IN WHAT SEEMED LIKE AN ILLUSTRATION OF THAT POINT GERMAN FINANCE MINISTER THEO WAIGEL DECLINED TO ATTEND THE EC MEETING LEAVING MR EEKHOFF AND OTHER CIVIL SERVANTS TO REPRESENT EUROPE'S LARGEST ECONOMY MR WAIGEL HAS BEEN DISTRACTED RECENTLY BY HIS PERSONAL SETBACKS WITHIN THE CHRISTIAN SOCIAL UNION THE BAVARIAN POLITICAL PARTY HE HEADS BRITISH CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT ALSO HARRIED BY POLITICAL ENEMIES AT HOME TOOK AN EQUALLY DOMESTIC LINE OUR NEEDS ARE DICTATED BY THE BRITISH ECONOMY HE SAID IN HIS LATEST DEFENSE OF LONDON'S DECISION TO RETREAT FROM THE ERM LAST SEPTEMBER AFTER PROCLAIMING FOR MONTHS THAT SUCH A MOVE WAS UNTHINKABLE MR LAMONT ATTRIBUTED THE UTURN TO A CLASH IN THE POLICY AIMS OF BRITAIN AND GERMANY GERMANY'S BUNDESBANK WAS KEEPING INTEREST RATES HIGH IN AN ATTEMPT TO SNUFF OUT THE INFLATION IGNITED BY THE HIGH COSTS OF REUNIFICATION BRITAIN DESPERATELY WANTED LOWER INTEREST RATES TO HELP REFLATE A SHRINKING ECONOMY BRITAIN CAN'T EVEN CONSIDER REJOINING THE ERM UNTIL ITS ECONOMIC CYCLE IS IN SYNC WITH THE CONTINENT MR LAMONT SAID WE'VE MADE IT CLEAR THAT WE ARE NOT GOING TO REJOIN THE ERM QUICKLY HE SAID ADDING IT MAY BE TWO YEARS IT MAY BE THREE YEARS OR IT MAY BE EVEN LONGER OTHER MEMBER STATES WANT TO PRESERVE THE ERM AND MOVE TOWARD MONETARY UNION WITHOUT BRITAIN BUT THE BRITISH SOLO ACT COULD MAKE THAT MORE DIFFICULT A DEVALUED POUND MAKES BRITISH GOODS CHEAPER ABROAD AT LEAST IN THE SHORT RUN AND THUS MIGHT TEMPT OTHER MEMBER STATES TO PROTECT THEIR EXPORTERS BY MATCHING BRITAIN'S FREEFLOATING CURRENCY APPROACH 9305240020 930524 BUSINESS BRIEF ISETAN CO DEPARTMENT STORE CONCERN'S PRETAX PROFIT DECLINES 64 ISETAN CO A JAPANESE DEPARTMENT STORE OPERATOR SAID ITS PARENT PRETAX PROFIT FELL 64 IN THE YEAR ENDED MARCH 31 AS STAGNANT PERSONAL CONSUMPTION LOWERED SALES AND DEPRECIATION AND OTHER FINANCIAL COSTS SQUEEZED PROFIT PRETAX PROFIT WAS 503 BILLION YEN 45 MILLION COMPARED WITH 1409 BILLION YEN A YEAR EARLIER ISETAN PROJECTS A FURTHER SHARP EROSION IN PROFIT AND SALES FOR THE CURRENT FISCAL YEAR AS A FULLFLEDGED RECOVERY IN KEY DOMESTIC DEMAND COMPONENTS OF PERSONAL CONSUMPTION AND PRIVATE CAPITAL OUTLAYS IS EXPECTED TO REQUIRE TIME THE COMPANY SAID A TOUGH BUSINESS ENVIRONMENT WILL CONTINUE AS FACTORS SUCH AS THE YEN'S ADVANCE MAKE FORECASTS ON THE ECONOMY DIFFICULT GIVEN THE PROLONGED NATURE OF THE ECONOMY'S SLOWDOWN AND MORE DISCRIMINATING TASTES OF CONSUMERS THE DEPARTMENT STORE INDUSTRY IS FACING THE NEED TO RECONSIDER PRICING POLICIES ISETAN SAID 9305240019 930524 TECHNOLOGY A SPECIAL REPORT FINDING AND FEEDING BURNOUT TOO FEW OF THE BEST IDEAS COME FROM THE OVER30 CROWD IT DOESN'T HAVE TO BE THAT WAY BY MICHAEL ALLEN BELLEVILLE WAS FRIED AT AGE 38 AND JUST 11 YEARS OUT OF GRADUATE SCHOOL HE HAD BROKEN ENOUGH TECHNOLOGICAL GROUND TO LAST A LIFETIME COMPUTERAIDED DESIGN WORK AT THE PRESTIGIOUS STANFORD RESEARCH INSTITUTE A STOP AT XEROX CORP'S PALO ALTO RESEARCH CENTER WHERE HE HELPED BRING TO MARKET THE WORLD'S FIRST OFFICEAUTOMATION SYSTEM AND FINALLY AN INTOXICATING ASSIGNMENT FROM STEVE JOBS AT APPLE COMPUTER INC AS HEAD ENGINEER FOR THE REVOLUTIONARY MACINTOSH PERSONAL COMPUTER BUT EVEN AS HIS CAREER HIT AN APEX HIS PSYCHE HIT THE SKIDS THE 20HOUR DAYS GRUELING DEADLINE PRESSURE AND RELENTLESS OBSESSION WITH THE BOTTOM LINE TURNED HIM IN HIS WORDS INTO A SICK MAN HE GOT EVEN SICKER IN 1985 AFTER APPLE CHIEF EXECUTIVE JOHN SCULLEY FIRED HIM AND JUST ABOUT EVERYONE ELSE CONNECTED WITH THE MACINTOSH AS PART OF A PALACE COUP AGAINST MR JOBS HE DIVORCED HIS WIFE ENTERED PSYCHOTHERAPY STUDIED HINDU PHILOSOPHY AND LIVED IN ISOLATION FOR SIX YEARS HIS CAREER IN TATTERS BUT IF MR BELLEVILLE SOUNDS LIKE JUST ANOTHER VICTIM OF SILICON VALLEY BURNOUT GUESS AGAIN NOW 46 HE'S HAPPILY IMMERSED IN A NEW JOB AT SILICON GRAPHICS INC WHERE HE HELPED START THE SUCCESSFUL INDIGO WORKSTATION PROJECT AND HE SAYS HE IS MAKING PROGRESS IN HIS QUEST TO MAKE COMPUTERS EASIER TO PROGRAM BY MAKING THEM ACT MORE LIKE HUMAN BRAINS THE SECRET TO HIS RECOVERY PEOPLE HERE CAN PURSUE IDEAS WITHOUT HAVING TO SPEND A LOT OF TIME DEFENDING THEM ALL DAY LONG HE SAYS AS MR BELLEVILLE'S STORY SUGGESTS CREATIVE LIFE DOESN'T HAVE TO END EARLY IN THE TECHNOLOGY BUSINESS AS HIGHTECH COMPANIES THEMSELVES GET OLDER THEY ARE DEVISING WAYS TO KEEP THEIR AGING CREATIVE PERSONNEL CREATIVE WHETHER THROUGH MORELENIENT LEAVEOFABSENCE POLICIES OR OUTSIDE COUNSELING OR OCCASIONAL CHANGES OF PROJECTS BUT MR BELLEVILLE'S TALE ALSO SUGGESTS THAT THERE'S A REASON WHY ALL THE GREAT NEW IDEAS SEEM TO COME FROM THE UNDER30 CROWD IT'S BECAUSE THEY OFTEN DO GENERALLY UNENCUMBERED BY CHILDREN OR SOCIAL LIVES YOUNG GENIUSES SIMPLY HAVE MORE TIME TO DEVOTE TO THEIR DISCIPLINES THEY FREQUENTLY HAVE MORE ENERGY AND ENTHUSIASM AND MOST IMPORTANT THE YOUNG TYPICALLY ARE MORE CAPABLE OF FEATS OF MENTAL GYMNASTICS SIMPLY BECAUSE THEY HAVEN'T LEARNED A SET WAY OF THINKING YET YOUNGER PEOPLE BY THEIR NATURE ARE ABLE TO THINK OUTSIDE THE DOTS BETTER THAN OLDER PEOPLE SAYS EDWARD MASI PRESIDENT OF INTEL CORP'S SUPERCOMPUTER DIVISION MAINTAINING CREATIVITY MAY BE EVEN MORE DIFFICULT NOWADAYS AS LIFE IN GENERAL BECOMES MORE COMPLICATED AND THE PACE OF TECHNOLOGICAL CHANGE ACCELERATES IT'S VERY NERVERACKING IF EVERY SIX MONTHS EVERYTHING YOU'VE ASSUMED HAS CHANGED SAYS 35YEAROLD JEFFREY HAWKINS WHO ONCE QUIT AN IMPORTANT TECHNOLOGYDEVELOPMENT JOB TO RECHARGE HIMSELF BY SPENDING TWO YEARS ON HIS HOBBY BRAIN RESEARCH SO WHAT'S A COMPANY TO DO WHEN ITS LEADING GENIUS STARTS TO SHOW SIGNS OF BURNOUT THE WORST POSSIBLE RESPONSE SAYS PSYCHOLOGIST ROBERT KRIEGEL A MUIR BEACH CALIF CONSULTANT TO SEVERAL BIG SILICON VALLEY COMPANIES IS TO CRACK THE WHIP MOST CREATIVE IDEAS COME WHEN YOU'RE LOOKING OUT THE WINDOW GOING FOR A RUN TAKING A SHOWER SAYS MR KRIEGEL COAUTHOR OF THE BOOK IF IT AIN'T BROKE BREAK IT WHEN YOU'RE TIRED AND EXHAUSTED YOU'RE MUCH LESS CREATIVE INDEED IT WAS A NAP THAT ENSURED FREIDRICH AUGUST KEKULE VON STRADONITZ A PLACE IN SCIENTIFIC HISTORY IN 1865 THE GERMAN CHEMIST'S LONG STRUGGLE TO DEDUCE THE STRUCTURE OF THE BENZENE RING ENDED WHEN HE FELL ASLEEP BEFORE A FIRE AND DREAMED OF ATOMS WRIGGLING AND TURNING LIKE SNAKES HIS DISCOVERY MARKED THE BEGINNING OF ORGANIC CHEMISTRY RELAXATION ISN'T THE ONLY SOLUTION AND THERE'S A FINE LINE BETWEEN INSPIRED RELAXATION AND LAZINESS PARTICULARLY IF A PATIENT HAS BEEN ON THE SAME PROJECT A LONG TIME MR KRIEGEL OFTEN RECOMMENDS A CHANGE OF VENUE WE'VE LEARNED IN OUR CULTURE TO VALUE EXPERIENCE HE SAYS BUT EXPERIENCE CAN BE THE BIGGEST OBSTACLE TO INNOVATION AND CHANGE AND CREATIVITY SWITCHING JOBS HE SAYS CAN DRAG THOUGHT PATTERNS OUT OF A RUT AND EVEN LEAD TO INCREASED PRODUCTIVITY HE SAYS ONE STORAGEDEVICE COMPANY ACTING ON HIS ADVICE MIXED UP JOBS AND FORCED EMPLOYEES TO THINK LIKE A BEGINNER THEY FIGURED OUT HOW TO REDUCE THEIR PRODUCTION CYCLE TO 15 DAYS FROM 28 HE SAYS ANOTHER SURE WAY TO STULTIFY A GENIUS IS TO PROMOTE HIM INTO MANAGEMENT THE TRADITIONAL CAREER PATH IN MANY COMPANIES INDEED MANY WHO HAVE BEEN THERE SAY IT IS THE SINGLE BIGGEST REASON THAT CREATIVE PEOPLE SEEM TO FIZZLE OUT AS THEY REACH MIDCAREER THAT'S WHY MANY HIGHTECH COMPANIES IN RECENT YEARS HAVE CREATED PARALLEL CAREER LADDERS FOR TECHNICAL PEOPLE GIVING THEM A CHANCE TO CONTINUE THEIR RESEARCH WITHOUT GETTING BOGGED DOWN IN ADMINISTRATIVE DETAILS CONVEX COMPUTER CORP A RICHARDSON TEXAS SUPERCOMPUTER MANUFACTURER TAKES THAT PHILOSOPHY TO AN EXTREME I WOULD SAY PROBABLY THE HIGHESTPAID PEOPLE IN OUR COMPANY EVEN IF YOU LOOK AT OFFICERS' SALARIES ARE TECHNICAL CONTRIBUTORS TO THE POINT THAT IN SOME CASES THEIR SUPERVISOR MAKES LESS THAN THEY DO SAYS STEVEN J WALLACH COFOUNDER OF THE COMPANY AND THE SENIOR VICE PRESIDENT TECHNOLOGY MR WALLACH IS A CASE IN POINT ALTHOUGH HE IS CONSIDERED THE EQUAL OF THE COMPANY'S CHIEF EXECUTIVE OFFICER WITH CASH COMPENSATION OF 231538 IN 1992 MR WALLACH SAYS HE SPENDS VIRTUALLY NO TIME MANAGING PEOPLE FOCUSING INSTEAD ON KEEPING THE COMPANY'S TECHNICAL FIRES STOKED ONE OF MR WALLACH'S MOST IMPORTANT ROLES IS TO SERVE AS A MOTHER HEN FOR ECCENTRIC ENGINEERS WHO BECOME FED UP WITH COMPANY BUREAUCRACY THEY RESPECT ME BECAUSE THEY KNOW I DON'T LIKE BUREAUCRACY I'M NOT A MANAGER HE SAYS THAT'S HOW HE WOUND UP WITH RESPONSIBILITY FOR ONE BRILLIANT BUT STRANGE COMPUTER WIZARD WHO HAD DISRUPTED A MEETING ONCE BY STABBING A BIG KNIFE INTO A PIECE OF PAPER BEARING A RIVAL COMPANY'S NAME INEVITABLY THE PROBLEM OF SILICON VALLEY BURNOUT HAS PROMPTED SOME PRETTY OFFBEAT REMEDIES THEY RANGE FROM THE MODEST SUCH AS A NEW HERBAL DRINK DESK TOP POP CROPPING UP IN COMPANY CAFETERIAS THAT PURPORTEDLY INCREASES OXYGEN FLOW TO THE BRAIN TO THE EXTREME SUCH AS HOWARD PEARLMUTTER'S SELFPROCLAIMED UNDERGROUND RAILROAD TO RESCUE FRIED GENIUSES THE 35YEAROLD MR PEARLMUTTER WHO LIVES IN A HOTSPRINGS RESORT ABOUT 2 1/2 HOURS NORTH OF SAN FRANCISCO RUNS A SOFTWARE COMPANY CALLED SOFTWEAVER OVER THE PAST 10 YEARS HE SAYS HE HAS SAVED DOZENS OF PEOPLE FROM HIGHPRESSURE TECHNICAL JOBS BY PUTTING THEM TO WORK ON SOFTWARE PROJECTS THAT ARE NEEDED AND WANTED IN THE ECOSYSTEM SUCH AS AN ECOLOGICAL FLIGHT SIMULATOR THAT MAKES THE USER FEEL LIKE AN INSECT CROSSPOLLINATING FLOWERS OR A BIRD TRYING TO FIND FOOD AMONG OTHER THINGS MR PEARLMUTTER COUNSELS HIS COLLEAGUES TO GIVE UP THEIR BIG MORTGAGES AND FANCY CARS AND BECOME LESS ATTACHED TO MONEY HE ALSO EMPLOYS MODERN TELECOMMUNICATIONS TO LET THEM WORK FROM WHEREVER IN THE WORLD THEY MOST LIKE TO BE HE JUST SET UP THE MAUI NODE FOR INSTANCE AND IF THAT ISN'T ENOUGH THEY CAN COME VISIT HIM AT THE HOT SPRINGS WHICH OFFERS 30 DIFFERENT KINDS OF MASSAGES VEGETARIAN MEALS AND WOODED HIKING TRAILS CHRONOLOGICAL AGE ISN'T REALLY IMPORTANT HE SAYS THERE ARE PEOPLE LIVING IN THESE HIGHSTRESS SITUATIONS WHO ARE TOTALLY CRISPY CRITTERS BY THE TIME THEY'RE 25 OR 30 CONVERSELY HE ADDS I HAVE FRIENDS IN THEIR 60S WHO ARE MORE ALIVE AND CREATIVE THAN SOME OF THESE PEOPLE WHO AREN'T EVEN 30 YET MR ALLEN IS DEPUTY CHIEF OF THE WALL STREET JOURNAL'S DALLAS BUREAU 9305240018 930524 TREASURY'S AUTOMATED AUCTION SYSTEM WORKING WELL DESPITE EARLIER CONCERNS BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TREASURY DEPARTMENT'S NEW AUTOMATED AUCTION SYSTEM IS WORKING WELL OFFICIALS SAID HASTENING THE ANNOUNCEMENT OF AUCTION RESULTS AND HOLDING OUT HOPE OF REDUCED BORROWING COSTS BEGUN LAST MONTH DESPITE A GENERAL ACCOUNTING OFFICE WARNING THAT POTENTIAL RISKS HADN'T BEEN ADEQUATELY ADDRESSED AUTOMATION HAS GONE FORWARD SMOOTHLY THE NEW SYSTEM IS OPERATING EXTREMELY WELL SAID FRANK NEWMAN TREASURY UNDERSECRETARY FOR DOMESTIC FINANCE FROM OUR PERSPECTIVE THERE HAVE BEEN NO GLITCHES AT ALL SAID J PATRICK ROTHSTEIN OF BEAR STEARNS & CO HE SAID THE SHIFT TO ELECTRONIC BIDDING FROM PAPER SUBMISSIONS WAS A LONG TIME COMING A LEADING BENEFIT FOR DEALERS IS THAT AUTOMATION ENABLES THE TREASURY TO ANNOUNCE AUCTION RESULTS MORE QUICKLY THIS REDUCES DEALERS' EXPOSURE AND MARKET UNCERTAINTY AND SHOULD HELP LOWER TREASURY BORROWING COSTS ACCORDING TO DEALERS AND OFFICIALS TO THE EXTENT THAT THE BIDDER'S RISK IS REDUCED BY AN EARLIER COMPLETION OF THE AUCTION TREASURY SHOULD BENEFIT FROM MORE AGGRESSIVE BIDDING AND REDUCED BORROWING COSTS SAID GERALD MURPHY THE TREASURY'S FISCAL ASSISTANT SECRETARY THE GAO A CONGRESSIONAL WATCHDOG AGENCY SAID THE NEW SYSTEM CAN'T DETECT COLLUSION OR FRAUD BUT CAN PROVIDE SOME INDICATION OF SUCH BEHAVIOR THAT CAN BE INVESTIGATED FURTHER THE GAO IS MONITORING THE AUTOMATION INITIATIVE THE TREASURY AND THE FEDERAL RESERVE DON'T AGREE WITH THE GAO'S ASSESSMENT THAT POTENTIAL RISKS WEREN'T ADEQUATELY ADDRESSED PAPER BIDS CONTINUE TO BE ACCEPTED PETER HOLLENBACH OF TREASURY'S BUREAU OF PUBLIC DEBT SAID THERE ARE NO PLANS TO MAKE ELECTRONIC BIDDING MANDATORY BUT ADDED THAT AS TIME GOES ON DEALERS WILL GET MORE AND MORE COMFORTABLE LEE OLESKY ASSISTANT GENERAL COUNSEL OF THE PUBLIC SECURITIES ASSOCIATION SAID THERE HAVE BEEN NO GLITCHES SO FAR THE PSA AN EARLY ADVOCATE OF AUTOMATION WHOSE MEMBERS INCLUDE ALL 39 PRIMARY DEALERS IN US GOVERNMENT SECURITIES WORKED CLOSELY WITH TREASURY AND THE FED IN BRINGING THE NEW SYSTEM ON LINE SO FAR 37 OF THE 39 PRIMARY DEALERS HAVE SIGNED ON TO THE NEW SYSTEM ALTHOUGH NOT ALL 37 HAVE USED IT TO BID YET TIME SAVINGS IN THE AUCTIONS IN WHICH AUTOMATED BIDDING HAS BEEN USED ARE DESCRIBED BY THE BUREAU OF PUBLIC DEBT AS A MEAN IMPROVEMENT OF 11 MINUTES DURING THE RECENT TREASURY QUARTERLY REFUNDING 31 PRIMARY DEALERS SUBMITTED COMPETITIVE BIDS ELECTRONICALLY FOR THE THREEYEAR 10YEAR AND 30YEAR SECURITIES AND FIVE PRIMARY DEALERS SUBMITTED ONLY NONCOMPETITIVE BIDS ELECTRONICALLY FOR THOSE ISSUES ACCORDING TO TREASURY DATA A TOTAL OF 280 COMPETITIVE BIDS WERE SUBMITTED ELECTRONICALLY FOR THE 30YEAR BOND OF WHICH TWO WERE LATE ELECTRONIC BIDS ACCOUNTED FOR 70 OF THE DOLLAR AMOUNT OF 30YEAR BOND BIDS ACCEPTED THE 30YEAR AUCTION CLOSED AT 1 PM EDT AND AUCTION RESULTS WERE OUT AT 139 PM A COUPLE YEARS GO THAT WOULD HAVE TAKEN TWO HOURS SAID THE PSA'S MR OLESKY 9305240017 930524 ECONOMY CLINTON IS REVIEWING ECONOMIC PROPOSAL IN BID TO WIN OVER WAVERING DEMOCRATS BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION AND DEMOCRATIC LEADERS IN CONGRESS ENTERING A WEEK THAT COULD MAKE OR BREAK THE PRESIDENT'S ECONOMIC PROGRAM ARE WEIGHING ADJUSTMENTS THAT WOULD SEAL WAVERING DEMOCRATS' VOTES IN THE HOUSE WHERE PRESIDENT CLINTON IS SHORT OF THE NECESSARY SUPPORT TO WIN A VOTE SCHEDULED FOR THURSDAY DEMOCRATIC LEADERS HAVE RESUMED NEGOTIATIONS ON PARTY CONSERVATIVES' DEMAND FOR A CAP ON SPENDING FOR SOCIAL SECURITY MEDICARE AND OTHER FEDERAL ENTITLEMENT PROGRAMS THEY MUST HOWEVER FIND A COMPROMISE THAT WON'T IN TURN COST THE VOTES OF LIBERALS WHO GENERALLY OPPOSE CAPS AND WHILE THE PRESIDENT AND CONGRESSIONAL LEADERS CONTINUED TO STAND BY HIS PROPOSED ENERGY TAX SPECULATION ABOUT SUBSTITUTE STEPS TO CUT THE DEFICIT INCLUDING A GASOLINE TAX WAS GROWING IN THE WAKE OF LAST WEEK'S ASSAULT ON THE ENERGY LEVY BY DEMOCRATIC SEN DAVID BOREN OF OKLAHOMA OVER THE WEEKEND THE PRESIDENT HIMSELF LED THE COUNTERASSAULT TO SEN BOREN'S ALTERNATIVE DEFICITREDUCTION PLAN WHICH WOULD REPLACE THE ENERGY TAX LARGELY WITH CUTS IN PROJECTED SPENDING FOR MEDICARE AND SOCIAL SECURITY WITH THE CHIEF OPPOSITION TO THE ENERGY TAX COMING FROM OILSTATE LAWMAKERS SUCH AS MR BOREN MR CLINTON IN HIS SATURDAY RADIO ADDRESS TARGETED THE BIG OIL LOBBY FOR ATTACK IT'S SIMPLY WRONG FOR A POWERFUL INTEREST TO TRY AND OPT OUT OF THIS PROGRAM BY ASKING THE ELDERLY AND THE WORKING POOR TO CONTRIBUTE MORE SO THEY CAN CONTRIBUTE LESS HE SAID SEPARATELY THE INDEPENDENT CENTER ON BUDGET AND POLICY PRIORITIES SAID MR BOREN'S PROPOSAL WOULD SUBSTANTIALLY EASE THE TAX INCREASE ON THE WEALTHY AND PROVIDE A WINDFALL FOR MANY WEALTHY INVESTORS AT THE SAME TIME IT WOULD TRIM WELFARE MEDICAID AND FOOD STAMPS BENEFITS FOR MANY OF THE POOR THE PRESIDENT'S POINT MAN IN THE SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY SAID ON THE NBC NEWS PROGRAM MEET THE PRESS YESTERDAY THAT HIS PANEL WON'T DROP THE ENERGY TAX BUT HE REMAINED OPEN TO MODIFICATIONS TO ASSUAGE SOME LAWMAKERS AND HE SUGGESTED HIS COMMITTEE WILL SEEK MORE SPENDING CUTS IN MEDICARE WHEN IT BEGINS WORK NEXT MONTH SEN MOYNIHAN ALSO SAID THAT SEN BOREN HAD MADE A COMMITMENT TO SUPPORT MR CLINTON'S PLAN ADDING A GENTLEMAN'S WORD CONTINUES IN PLACE OF COURSE SEN BOREN APPEARING ON ABC NEWS'S THIS WEEK WITH DAVID BRINKLEY YESTERDAY SAID THAT HIS PAST WORDS WERE NOT A PLEDGE FOR A SPECIFIC PACKAGE BUT SINCE MR CLINTON'S PLAN WAS UNVEILED IN FEBRUARY MR BOREN HAS BEEN QUOTED AS SAYING IT HAD HIS UNCONDITIONAL SUPPORT THIS IS THE BEST MOST PROMISING BUDGET I'VE SEEN SINCE I'VE BEEN IN CONGRESS HE TOLD THE NEW YORK TIMES IN LATE FEBRUARY WHEN FINANCE COMMITTEE DEMOCRATS VISITED MR CLINTON WEEKS AGO AT THE WHITE HOUSE SEN BOREN TOLD HIM I WON'T DO ANYTHING THAT WOULD CAUSE YOU TO FAIL ACCORDING TO A COLLEAGUE CRUCIAL VOTE SINCE THAT TIME WASHINGTONBASED COALITIONS AGAINST THE ENERGY TAX HAVE TARGETED OKLAHOMA FOR THEIR CAMPAIGN PUTTING SEN BOREN UNDER PRESSURE AT HOME HE HAS UNUSUAL POWER BY VIRTUE OF THE DEMOCRATS' NARROW 119 EDGE ON THE FINANCE COMMITTEE THE LOSS OF A SINGLE DEMOCRAT COULD DOOM THE BILL MR CLINTON DESPITE HIS ATTACK ON THE OIL LOBBY HAS BEEN DISCUSSING CHANGES TO HIS TAX BILL THAT WOULD BE HELPFUL TO THAT INDUSTRY WITH LOUISIANA SEN JOHN BREAUX ANOTHER OILSTATE DEMOCRAT WHO LIKE SEN BOREN HAS A CRITICAL VOTE AS A MEMBER OF THE TAXWRITING FINANCE PANEL THOSE DISCUSSIONS PERSUADED SEN BREAUX NOT TO SIDE WITH THE BOREN GROUP WHICH INCLUDES LOUISIANA'S OTHER DEMOCRATIC SENATOR BENNETT JOHNSTON AND GOP MODERATES JOHN DANFORTH OF MISSOURI AND WILLIAM COHEN OF MAINE ON THE CBS NEWS PROGRAM FACE THE NATION SEN BREAUX SAID MR CLINTON'S ENERGY TAX CANNOT PASS THE SENATE AS IT'S WRITTEN NOW HE RESURRECTED HIS CALL FOR A HIGHER GASOLINE TAX INSTEAD SAYING HE WOULD OFFER A PLAN THIS WEEK WITH AN INCREASE OF EIGHT CENTS PER GALLON EACH PENNY INCREASE IN THE GAS TAX IS ESTIMATED TO RAISE ROUGHLY 1 BILLION A YEAR IN REVENUE THE PRESIDENT'S LEVY ON ENERGY CONSUMPTION AS MEASURED BY BRITISH THERMAL UNITS IS DESIGNED TO RAISE ABOUT 22 BILLION A YEAR AFTER IT'S FULLY PHASED IN THUS IT WOULD TAKE AN INCREASE OF ABOUT 20 CENTS A GALLON IN THE GAS TAX TO MATCH THE BTU TAX REVENUES MOREOVER THE GASOLINE TAX HAS POLITICAL RISKS THAT THE WHITE HOUSE ALREADY HAD CONSIDERED IN RULING IT OUT THE TAX WOULD BE MUCH MORE OBVIOUS TO CONSUMERS AND IT WOULD HIT HARDEST IN STATES WHERE RESIDENTS DRIVE MORE THE PROSPECT OF A GAS TAX AS A FALLBACK HAS CAUSED SOME GROUPS NOTABLY THE TRUCKING INDUSTRY TO MUTE OPPOSITION TO THE CLINTON ENERGY TAX ON THE CBS PROGRAM TREASURY DEPUTY SECRETARY ROGER ALTMAN SAID THE ADMINISTRATION'S ENERGY TAX WOULD BE GEOGRAPHICALLY FAIRER AND DOESN'T DISCRIMINATE AGAINST RURAL AREAS HE ALSO PREDICTED THE VARIOUS ALTERNATIVES SUCH AS THOSE FROM SENS BOREN AND BREAUX WOULD FAIL THE BOREN ALTERNATIVE BESIDES JEOPARDIZING THE ENERGY TAX ALSO IS RESPONSIBLE FOR REVIVING CONSERVATIVE DEMOCRATS' EFFORTS TO CAP ENTITLEMENT SPENDING BECAUSE MANY OF THE SAME LAWMAKERS OPPOSE THE BTU TAX AND FAVOR THE SPENDING CAPS DEMOCRATIC CONGRESSIONAL LEADERS FEEL THEY MUST SATISFY THOSE MEMBERS ON THE SPENDING ISSUE OR LOSE THEIR VOTES INITIAL CHECKS SHOW DEMOCRATS FAR SHORT OF THE 218 NEEDED IF AS MANY EXPECT ALL REPUBLICANS OPPOSE THE BILL I THINK WE'RE GOING TO PASS A PACKAGE IN THE HOUSE THIS WEEK SAID HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO ON THE CBS PROGRAM AND REP CHARLES STENHOLM D TEXAS THE LEADING PROPONENT OF SPENDING CAPS SAID ON THE BRINKLEY PROGRAM WE'RE GOING TO WORK IT OUT LATE FRIDAY NEBRASKA'S DEMOCRATIC SENATORS BOB KERREY AND JAMES EXON SAID IN A STATEMENT THAT THEY HOPED THE BOREN PLAN WOULD BE THE BASIS OF A COMPROMISE DEFICITREDUCTION PLAN MEANWHILE TODAY THE ADMINISTRATION IS EXPECTING SOME GOOD NEWS WITH THE PLANNED RELEASE OF TWO LETTERS OF ENDORSEMENT ONE IS A LIST OF CORPORATE SUPPORTERS AND THE OTHER IS FROM A BROAD EMERGING COALITION REPRESENTING REAL ESTATE BUSINESS EDUCATION ENVIRONMENTAL AND LABOR INTERESTS 9305240016 930524 BURNHAM PACIFIC SET TO INCREASE PAYOUT IN SECOND QUARTER SAN DIEGO BURNHAM PACIFIC PROPERTIES INC EXPECTS TO PERFORM SUBSTANTIALLY ABOVE ANALYSTS' PROJECTIONS MAKING AN INCREASE IN THE COMPANY'S DIVIDEND LIKELY LOUIS J GARDAY PRESIDENT AND CHIEF EXECUTIVE SAID MR GARDAY SAID THE INCREASE MIGHT BE MADE EFFECTIVE AS EARLY AS THE END OF THE SECOND QUARTER IT'S NOT A QUESTION OF WHETHER WE'RE GOING TO RAISE THE DIVIDEND HE SAID BUT WHEN WE'RE GOING TO RAISE THE DIVIDEND THE REAL ESTATE INVESTMENT TRUST'S BOARD WILL VOTE ON THE ISSUE AT ITS MEETING TOMORROW MR GARDAY SAID BURNHAM PACIFIC'S 34CENTAQUARTER DIVIDEND HAS NOT CHANGED SINCE 1989 MR GARDAY SAID THE COMPANY HAS THE ABILITY TO INCREASE ITS DIVIDEND BECAUSE OF IMPROVED OPERATIONS BURNHAM'S SECONDQUARTER NET INCOME WILL BE SLIGHTLY IN EXCESS OF 25 MILLION OR 20 CENTS A SHARE COMPARED WITH A LOSS OF 301000 OR THREE CENTS A SHARE A YEAR EARLIER HE SAID IN THE FIRST QUARTER BURNHAM PACIFIC HAD NET INCOME OF 12 MILLION OR 17 CENTS A SHARE UP FROM 155000 OR TWO CENTS A SHARE THE PRIOR YEAR BUT MR GARDAY STRESSED THAT THE LIKELY DIVIDEND INCREASE IS MORE A PRODUCT OF IMPROVED PERFORMANCE IN THE REIT'S ANNUAL CASH FLOW EXPECTED TO SUBSTANTIALLY EXCEED THE 141ASHARE LEVEL MOST ANALYSTS ARE PROJECTING HE SAID TO THE EXTENT CASH FLOW EXCEEDS 150 A SHARE THAT MONEY WILL BE PAID IN DIVIDENDS THE EXECUTIVE SAID ANNUAL CASH FLOW IN 1992 WAS 99 CENTS A SHARE DOWN FROM 134 A YEAR EARLIER THE PERFORMANCE OF A REIT IS GENERALLY MEASURED BY CASH FLOW OR FUNDS FROM OPERATIONS THIS MEASURE OF PERFORMANCE IS COMPUTED BY TAKING NET INCOME ADDING BACK DEPRECIATION AND NONCASH CHARGES THEN SUBTRACTING CAPITAL GAINS AND LOSSES MR GARDAY SAID SECONDQUARTER CASH FLOW WILL BE AT LEAST 35 CENTS A SHARE IN LINE WITH ANALYSTS' PROJECTIONS OF 35TO37 CENTS A SHARE LAST YEAR THE COMPANY POSTED SECONDQUARTER CASH FLOW OF 16 CENTS A SHARE 9305240015 930524 POLITICS & POLICY ENTITLEMENTCAP PROPOSALS RESURFACE AHEAD OF VOTE ON DEFICIT REDUCTION BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CALL IT DARMAN'S REVENGE BACK IN THE BUSH ADMINISTRATION BUDGET DIRECTOR RICHARD DARMAN TOLD ANYONE WHO WOULD LISTEN THAT THE ONLY SURE CURE FOR THE DEFICIT WAS A LEGAL CEILING OR CAP ON SPENDING FOR EXPLODING FEDERAL BENEFIT PROGRAMS LIKE MEDICARE HE GOT NOWHERE AND NOW HE IS A NOBODY AS FAR AS GOVERNMENT POLICY GOES BUT THE ENTITLEMENT CAP AS IT IS KNOWN IS BACK ONLY THIS TIME IT IS CONGRESSIONAL DEMOCRATS WHO ARE TRYING TO FORCE IT ON A PRESIDENT FROM THEIR OWN PARTY SEEKING TO SHORE UP SUPPORT FOR THIS WEEK'S VOTE ON PRESIDENT CLINTON'S DEFICITREDUCTION PLAN DEMOCRATIC LEADERS IN THE HOUSE WITH WHITE HOUSE BLESSING ARE TRYING TO DEVISE A CAP THAT APPEALS TO CONSERVATIVE DEMOCRATS WITHOUT ANTAGONIZING LIBERALS THE CAPS PROPOSED BY DEMOCRATIC CRITICS OF THE CLINTON PLAN SUCH AS SEN DAVID BOREN OF OKLAHOMA AND TEXAS REP CHARLES STENHOLM ARE TOO STRICT FOR MR CLINTON AND FOR LIBERAL DEMOCRATS WHOSE VOTES ARE CRUCIAL BUT A VARIANT CRAFTED BY REP JOHN SPRATT OF SOUTH CAROLINA IS GETTING SCRUTINY THE WHITE HOUSE IS UNENTHUSIASTIC ABOUT ALL THIS BUT ADMINISTRATION OFFICIALS CONCEDE THEY PROBABLY WOULD GO ALONG WITH A LENIENT CAP ONE THAT DOESN'T REQUIRE SIGNFICANTLY MORE SPENDING RESTRAINT THAN ALREADY ENVISIONED IN THE FIVEYEAR BUDGET PLAN THAT CONGRESS HAS ADOPTED BOTH THE SPRATT AND STENHOLM CAPS QUALIFY THEY ARE DESIGNED TO MAKE SURE THAT BENEFIT PROGRAMS DON'T COST ANY MORE THAN CURRENTLY PROJECTED THE CAP PROPOSED LAST WEEK BY SEN BOREN AND SEN JOHN DANFORTH REPUBLICAN OF MISSOURI IS MEANT TO FORCE DEEPER CUTS THE ADMINISTRATION ALSO WANTS A CAP THAT IS SUFFICIENTLY FLEXIBLE TO ALLOW SPENDING ON SUCH PROGRAMS AS UNEMPLOYMENT COMPENSATION TO RISE IN A RECESSION AND OF COURSE ONE THAT MAKES ROOM FOR THE CLINTON HEALTHCARE INITIATIVE THE PHRASE ENTITLEMENT CAP IS ONE OF THOSE ANTISEPTIC WASHINGTON EUPHEMISMS PUT BLUNTLY IT IS A WAY TO LIMIT SPENDING ON PROGRAMS LIKE SOCIAL SECURITY MEDICARE THE MEDICAID HEALTHCARE PROGRAM FOR THE POOR FOOD STAMPS VETERANS' DISABILITY BENEFITS FARM SUBSIDIES AND DEPOSIT INSURANCE THIS HAS BECOME A CODE WORD FOR CUTTING SOCIAL SECURITY SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN DEMOCRAT FROM NEW YORK SAID YESTERDAY ON NBC'S MEET THE PRESS ALTHOUGH MANY WELLOFF AMERICANS BENEFIT FROM THESE PROGRAMS ON BALANCE THEY HELP THE POOR MORE THAN THE RICH UNLESS CAREFULLY DESIGNED CAP CRITICS SAY A CAP COULD DISPROPORTIONATELY HIT THE MOST VULNERABLE AMERICANS BUT EVEN SOME DEMOCRATS IN CONGRESS SENSE THAT THE PUBLIC AT LEAST IN PRINCIPLE WANTS THE GOVERNMENT TO SPEND LESS THAN MR CLINTON PROPOSED WE HAVE TO ADD SOME MORE SPENDING CUTS AND WE WILL SEN MOYNIHAN SAID SUGGESTING THAT HIS COMMITTEE LIKELY WILL CUT MEDICARE MORE THAN THE PRESIDENT HAS SUGGESTED THESE BENEFIT PROGRAMS DUBBED ENTITLEMENTS BECAUSE EVERYONE WHO IS ELIGIBLE HAS A RIGHT TO BENEFITS ACCOUNT FOR ROUGHLY HALF THE 15 TRILLION THE FEDERAL GOVERNMENT WILL SPEND THIS YEAR THROW IN INTEREST ON THE FEDERAL DEBT ANOTHER ITEM FOR WHICH SPENDING IS MANDATORY AND NEARLY TWOTHIRDS OF THE BUDGET IS SPENT WITHOUT ANY APPROVAL BY CONGRESS OR THE PRESIDENT AS A MATTER OF PUBLIC RESPONSIBILITY THIS BORDERS ON THE SCANDALOUS MR DARMAN TOLD THE HOUSE BUDGET COMMITTEE LAST YEAR AS HE PRESSED FOR A CAP THE DEFICIT CANNOT BE ADDRESSED SERIOUSLY UNLESS THE GROWTH OF MANDATORY PROGRAMS IS BROUGHT UNDER CONTROL BACK IN 1990 JUST AFTER THE LAST BIG DEFICITREDUCTION LAW PASSED THE CONGRESSIONAL BUDGET OFFICE PROJECTED THAT THE DEFICIT THIS YEAR WOULD BE ABOUT 170 BILLION NOW IT EXPECTS THE DEFICIT TO BE ABOUT 300 BILLION THE 1990 LAW CAPPED SPENDING THAT CONGRESS APPROPRIATES ANNUALLY EVERYTHING FROM FEDERAL HIGHWAY GRANTS TO BUYING PAPER CLIPS FOR THE PENTAGON AND IT BLOCKED CONGRESS FROM CREATING NEW BENEFITS OR CUTTING TAXES WITHOUT PAYING FOR THEM BUT IT REQUIRED NO ACTION WHEN MEDICARE AND MEDICAID SPENDING EXPLODED WHICH IS WHAT HAPPENED OF THE 130 BILLION DIFFERENCE BETWEEN THE PREVIOUS DEFICIT FORECAST AND THE CURRENT ONE GREATERTHANANTICIPATED SPENDING ON BENEFIT PROGRAMS ACCOUNTS FOR 55 BILLION THE DISAPPOINTING ECONOMY ACCOUNTS FOR ANOTHER 45 BILLION HENCE THE INTEREST IN A CAP A MANIFESTATION OF WHAT RUDOLPH PENNER A FORMER CBO DIRECTOR NOW AT THE ACCOUNTING FIRM KPMG PEAT MARWICK CALLS THE CONSTANT SEARCH FOR BUDGET RULES THAT WILL PRESUMABLY PROVOKE REFORMS WHILE EXISTING CAPS SIMPLY REQUIRE CONGRESS TO CONTROL ITSELF AN ENTITLEMENT CAP WOULD FORCE IT TO ACT WHEN SOMETHING BEYOND ITS CONTROL OCCURS OF COURSE CONGRESS AND THE PRESIDENT DON'T NEED A CAP TO SIMPLY CHANGE THE OFFENDING PROGRAMS SO THEY DON'T COST SO MUCH BUT THE PROGRAMS ARE POPULAR AND CHANGE PAINFUL CONGRESS WON'T REFORM THEM ONE AT A TIME SO YOU HAVE TO FORCE IT SAYS SEN PETE DOMENICI OF NEW MEXICO SENIOR REPUBLICAN ON THE SENATE BUDGET COMMITTEE AND A CAP FAN MR DARMAN HAD IN MIND A CAP THAT WOULD LIMIT THE GROWTH OF SPENDING ON ALL BENEFITS TO THE OVERALL INFLATION RATE PLUS THE GROWTH OF THE ELIGIBLE POPULATION HEALTH CARE OF COURSE WOULD HAVE QUICKLY BEEN EXPOSED AS THE CULPRIT MR DARMAN HOPED A CAP WOULD INDUCE THE GOVERNMENT TO FINALLY TACKLE HEALTHCARE REFORM NOW THAT HEALTHCARE REFORM'S TIME HAS COME THE CURRENT FLIRTATION WITH ENTITLEMENT CAPS MAY REFLECT DIFFERENT MOTIVES ONE IS THAT SOME MEMBERS OF CONGRESS ARE RELUCTANT TO VOTE FOR MR CLINTON'S BIG TAX INCREASES WITHOUT DOING SOMETHING TO ASSURE VOTERS THAT THE MONEY GOES TO REDUCE THE DEFICIT NOT FUEL MORE SPENDING BUT ANOTHER MOTIVE MAY BE TO RESTRAIN MR CLINTON'S PLAN TO EXTEND HEALTH INSURANCE TO ALL WHO NOW LACK IT MR STENHOLM'S CAP WOULDN'T ALLOW MR CLINTON TO SPEND MORE ON HEALTH CARE UNLESS HE RAISED TAXES TO COVER THE ADDED SPENDING THE CAP THAT SENS BOREN AND DANFORTH PROPOSED LAST WEEK RESEMBLES MR DARMAN'S BUT IT WOULD ONLY APPLY TO MEDICARE MEDICAID AND WELFARE IT EXEMPTS FARM SUBSIDIES AND VETERANS BENEFITS SEPARATELY THEY PROPOSE TO SQUEEZE SOCIAL SECURITY BENEFITS AND GOVERNMENT PENSIONS BY SETTING THE COSTOFLIVING ADJUSTMENT BELOW THE INFLATION RATE FOR MANY RECIPIENTS BEYOND THE PROPOSALS THAT MR CLINTON HAS ALREADY MADE THAT WOULD SAVE ABOUT 56 BILLION OVER FIVE YEARS THE BORENDANFORTH CAP WOULD SQUEEZE ANOTHER 114 BILLION OUT OF MEDICARE MEDICAID AND WELFARE THE SENATORS AREN'T HIDING THE PAIN THEY PROPOSE TO INFLICT LISTING THE WAYS THAT CONGRESS MIGHT COMPLY WITH A CAP THEY SUGGEST RAISING MEDICARE PREMIUMS FOR THOSE WITH INCOMES ABOVE 75000 REQUIRING ALL ELDERLY TO PAY A BIGGER SHARE OF HOMEHEALTH AND LAB BILLS AND REDUCING THE FEDERAL SHARE OF MEDICAID AND WELFARE COSTS IN NEW YORK CALIFORNIA AND 10 OTHER STATES REP SPRATT'S CAP IN CONTRAST WOULDN'T REQUIRE ANY MONEYSAVING PROPOSALS BEYOND THOSE ALREADY IN THE WORKS HIS CLINTONFRIENDLY CAP IS DESIGNED TO INCREASE THE ODDS THAT THE CLINTON DEFICITREDUCTION PLAN ACTUALLY REDUCES THE DEFICIT IF ENTITLEMENT PROGRAMS COST MORE THAN EXPECTED IN ANY YEAR AFTER MAKING CERTAIN ADJUSTMENTS THEN THE PRESIDENT AND CONGRESS WOULD REDUCE BENEFITS OR RAISE TAXES THE NEXT YEAR THE SPRATT CAP WOULD BE EASIER TO LIVE WITH AND THAT'S WHY IT IS SO APPEALING TO THE DEMOCRATIC LEADERSHIP BUT THAT ALSO COULD MAKE IT MORE EFFECTIVE THAN MUCH STRICTER ALTERNATIVES ADMIRERS SAY CAPS CAN BE EFFECTIVE IN PUSHING YOU IN THE DIRECTION OF RESPONSIBILITY MR PENNER SAYS BUT IF THEY ARE TOO MUCH OUT OF LINE WITH THE POLITICAL REALITY THEY'LL JUST BREAK DOWN 9305240014 930524 WHO'S NEWS MELLON BANK SAYS BOSTON CO MERGER TO CAUSE 200 LAYOFFS PITTSBURGH MELLON BANK CORP IN ANNOUNCING THE COMPLETION OF ITS ACQUISITION OF BOSTON CO SAID THE MERGER WILL RESULT IN 200 LAYOFFS THIS YEAR BUT THE ACQUIRED COMPANY'S ACCLAIMED PRESIDENT WILLIAM NUTT WON'T JOIN MELLON AS EXPECTED IN A STATEMENT MELLON SAID THE EXECUTIVE DID NOT SEE A ROLE FOR HIMSELF THAT FIT HIS CAREER OBJECTIVES MR NUTT COULDN'T BE REACHED BOSTON CO IS A UNIT OF AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS HOLDINGS ANOTHER TOP BOSTON CO EXECUTIVE CHIEF ADMINISTRATIVE OFFICER GEORGE W CARMANY III LEFT THE UNIT TO REJOIN AMERICAN EXPRESS WITH BOSTON CO MELLON NOW HAS ADMINISTRATION OF 700 BILLION IN ASSETS INCLUDING 150 BILLION IT WILL ACTIVELY MANAGE MELLON SAID ITS TRUST AND INVESTMENT BUSINESS WHICH NOW INCLUDES BOSTON CO WILL BE HEADED BY W KEITH SMITH AS EXPECTED MR SMITH 58 YEARS OLD WAS ALSO NAMED CHAIRMAN AND CHIEF EXECUTIVE OF BOSTON CO HE RETAINS HIS POST AS A MELLON VICE CHAIRMAN LAWRENCE S KASH A MELLON EXECUTIVE VICE PRESIDENT WHO MOST RECENTLY HEADED MELLON'S PRIVATE BANKING ACTIVITIES WAS NAMED PRESIDENT OF BOSTON CO MR KASH 51 WILL BE RESPONSIBLE FOR MANAGING INVESTMENT PRODUCTS CHRISTOPHER M CONDRON 46 RETAINS HIS POST AS PRESIDENT OF BOSTON CO'S BOSTON SAFE DEPOSIT & TRUST CO BANKING UNIT HE ALSO WILL BE RESPONSIBLE FOR MANAGING THE COMBINED PRIVATE BANKING BUSINESS OF MELLON AND BOSTON CO INCLUDING RELATED MORTAGAGE LOAN ORIGINATION ROBERT M BOYLES 48 EXECUTIVE VICE PRESIDENT AND HEAD OF MELLON'S TRUST AND INVESTMENT DEPARTMENT ASSUMES MANAGEMENT RESPONSIBILITY FOR THE GLOBAL ASSET MANAGEMENT AND INSTITUTIONAL TRUST BUSINESSES 9305240013 930524 BUSINESS BRIEF ZALE BANKRUPTCY PLAN REQUIRING PAYMENTS OF 87 MILLION CLEARED DALLAS ZALE CORP SAID A FEDERAL BANKRUPTCY COURT JUDGE APPROVED SETTLEMENTS REQUIRING PARTIES TO THE BANKRUPTCY TO PAY 87 MILLION TO THE BIG JEWELRY RETAILER FOR DISTRIBUTION TO ITS CREDITORS TERMS CALL FOR SWAROVSKI INTERNATIONAL HOLDING AG A SWISS HOLDING COMPANY THAT IS A COOWNER OF ZALE TO PAY ABOUT 70 MILLION FOR ARTHUR ANDERSEN & CO ZALE'S FORMER AUDITOR TO PAY ABOUT 9 MILLION AND FOR CIGNA CORP'S CIGNA INSURANCE CO THE COMPANY'S PRIMARY DIRECTORS AND OFFICERS LIABILITY INSURER TO PAY ABOUT 8 MILLION ON BEHALF OF THREE ZALE DIRECTORS ACCORDING TO A ZALE SPOKESMAN THE THREE DIRECTORS WERE REPRESENTATIVES OF PEOPLES JEWELLERS LTD OF TORONTO THE OTHER COOWNER ZALE SAID THE SETTLEMENT WITH THE PEOPLES DIRECTORS AND CIGNA WAS OPPOSED BY NATIONAL UNION FIRE INSURANCE CO THE COMPANY'S EXCESS INSURANCE CARRIER AND A UNIT OF AMERICAN INTERNATIONAL GROUP INC UNDER THE SETTLEMENT CIGNA WILL SELL TO ZALE CREDITORS ITS RIGHT TO PURSUE CLAIMS AGAINST THIRD PARTIES ZALE SAID ZALE ADDED THAT IT EXPECTS A LAWSUIT TO BE FILED AGAINST PEOPLES' DIRECTORS BUT THAT ANY RECOVERY WILL BE LIMITED SOLELY TO THE RIGHTS UNDER THE INSURANCE POLICIES ISSUED BY NATIONAL UNION AND CHUBB INSURANCE CO THE CHUBB CORP UNIT IS PEOPLES' DIRECTORS AND OFFICERS LIABILITY CARRIER ATTORNEYS FOR NATIONAL UNION AND ARTHUR ANDERSEN COULDN'T BE REACHED FOR COMMENT ZALE CREDITORS HAD ALLEGED THAT THE ACCOUNTING FIRM HAD FAILED TO DISCLOSE THE COMPANY'S DECLINING FINANCIAL SITUATION AS REPORTED THE BANKRUPTCY COURT CONFIRMED ZALE'S REORGANIZATION PLAN LAST WEEK THE COMPANY EXPECTS TO EMERGE FROM BANKRUPTCY IN LATE JULY 9305240012 930524 CREDIT RATINGS FABRICENTERS OF AMERICA INC HUDSON OHIO MOODY'S INVESTORS SERVICE INC DOWNGRADED 60 MILLION OF FABRICENTERS' CONVERTIBLE SUBORDNATED NOTES TO SINGLEB2 FROM BA3 THE RATINGS AGENCY CITED THE RETAILER'S SHARPLY DECLINING PROFITS SUBSTANTIAL INCREASES IN LEASE OBLIGATIONS AND MOODY'S EXPECTATION FOR CONTINUED INDUSTRY OVERCAPACITY COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY STANDARD & POOR'S CORP AFFIRMED THE SENIOR DEBT AND COMMERCIAL PAPER RATINGS OF THIS COMPUTER MAKER AT DOUBLEAMINUS AND A1PLUS RESPECTIVELY ABOUT 19 BILLION OF DEBT IS AFFECTED THE RATINGS AGENCY MAINTAINED A NEGATIVE OUTLOOK ON THE COMPANY BUT SAID IBM'S CONSERVATIVE FINANCIAL POLICIES CONTINUE TO BOLSTER THE COMPANY'S BALANCE SHEET AND SUPPORT ITS DEBT RATINGS S&P ADDED THAT THE DIFFICULT COMPUTER MARKET WILL MAKE IT HARD FOR IBM TO BE PROFITABLE THIS YEAR S&P ALSO RATED THE SENIOR DEBT PORTION OF IBM'S 265 BILLION SHELF REGISTRATION DOUBLEAMINUS THE PREFERRED STOCK PORTION OF THE REGISTRATION RECEIVED A SINGLEAPLUS RATING OLYMPIA & YORK DEVELOPMENTS LTD TORONTO STANDARD & POOR'S CORP LOWERED ITS DEBT RATING ON OLYMPIA & YORK WATER STREET FINANCE CORP'S 435 MILLION OF 825 SECURED NOTES DUE 1996 AND 1133 MILLION OF ZERO COUPON SECURED NOTES DUE 1996 TO D FROM SINGLEB AND WITHDREW THE RATINGS THE RATINGS AGENCY SAID THE ACTIONS FOLLOWED THE ISSUER'S RECENT FILING FOR A PREPACKAGED CHAPTER 11 BANKRUPTCY S&P ADDED THAT IT EXPECTS ANNUAL INTEREST PAYMENTS DUE IN JUNE WILL NOT BE MADE AND THAT THE NOTES WILL BE EXCHANGED FOR A DIRECT EQUITY INTEREST IN THE NEW YORK BUILDING BY THE END OF 1993 9305240011 930524 BROWN GROUP INC TO REPORT A PROFIT IN FISCAL 1ST PERIOD BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL BROWN GROUP INC EXPECTS FISCAL FIRSTQUARTER NET INCOME TO BE MODERATELY MORE THAN 20 CENTS A SHARE COMPARED WITH A LOSS A YEAR EARLIER CHAIRMAN BA BRIDGEWATER JR SAID MR BRIDGEWATER CITED STRONG PERFORMANCES OF BROWN'S VALUEORIENTED BUSINESSES WHICH INCLUDES ITS FAMOUS FOOTWEAR AND INTERNATIONAL OPERATIONS BASED IN ST LOUIS BROWN IS A SHOE AND SPECIALTY RETAILING CONCERN THAT MARKETS SUCH BRANDS AS NATURALIZER CONNIE LIFE STRIDE AND DR SCHOLL'S IN THE FISCAL FIRST QUARTER OF LAST YEAR BROWN GROUP POSTED A LOSS OF 208 MILLION OR 121 A SHARE THAT INCLUDED A BIG CHARGE OF 215 MILLION OR 125 A SHARE FOR PLANT CLOSINGS AND INVENTORY REDUCTIONS AMONG OTHER THINGS MR BRIDGEWATER SAID IN AN INTERVIEW THAT HE EXPECTS SALES IN THE LATEST QUARTER ENDED APRIL 30 WILL RISE 6 TO MORE THAN 460 MILLION FROM 437 MILLION BROWN GROUP'S PERFORMANCE HAS LONG SUFFERED FROM THE INFLUX OF INEXPENSIVE SHOES MADE BY COMPETITORS OVERSEAS IMPORTS CONTRIBUTE MORE THAN 90 OF TOTAL SALES FOR WOMEN'S SHOES BROWN'S MAIN MARKET TO SURVIVE BROWN DEVELOPED ITS OWN IMPORTER IN 1984 BROWN GROUP INTERNATIONAL AND IN 1986 BOUGHT PAGODA TRADING CO WHICH SELLS BRANDED FOOTWEAR WORLDWIDE AND IMPORTED FOOTWEAR TO DISCOUNTERS LIKE WALMART STORES INC THE INTERNATIONAL BUSINESSES ARE RAPIDLY GROWING LAST YEAR BROWN FORMED A JOINT VENTURE WITH PACIFIC CONCORD LTD HONG KONG TO MARKET BRANDED SHOES IN CHINA'S DEPARTMENT STORES MR BRIDGEWATER SAID BROWN IS VERY ACTIVELY SEEKING WAYS TO DEVELOP ORE BUSINESS IN EUROPE AND ASIA THOUGH THE COMPANY HAS NO DEALS TO ANNOUNCE NOW AT THE SAME TIME BROWN IS QUICKLY SHRINKING ITS US MANUFACTURING OPERATIONS WHEN MR BRIDGEWATER JOINED THE COMPANY IN 1979 THERE WERE 22 SHOE ASSEMBLY PLANTS AND FOUR COMPONENTS PLANTS CHURNING OUT 30 MILLION PAIRS ANNUALLY AGGRESSIVE PLANT CLOSINGS ESPECIALLY IN RECENT YEARS HAVE SLASHED THAT TO EIGHT SHOE PLANTS AND TWO COMPONENTS PLANTS MAKING 12 MILLION PAIRS A YEAR THE CHAIRMAN SAID BROWN'S CAPITAL SPENDING FOR 1993 WILL BE BETWEEN 25 MILLION AND 30 MILLION SLIGHTLY HIGHER THAN THE 24 MILLION IT SPENT LAST YEAR HE SAID MOST WILL BE SPENT ON FAMOUS FOOTWEAR'S GROWTH FOR FISCAL 1994 MR BRIDGEWATER SAID HE IS AS COMFORTABLE AS ONE CAN BE IN THIS UNCERTAIN TIME WITH ANALYSTS' FULLYEAR EARNINGS ESTIMATES OF 180 TO 2 A SHARE WITH ITS GROWING BUSINESSES ABROAD AND STREAMLINED US OPERATIONS BROWN IS WELLPOSITIONED TO DEFEND OURSELVES IN A DIFFICULT ECONOMY HE SAID 9305240010 930524 EUROPEAN BOND YIELDS MOVE TOGETHER BOLSTERING OUTLOOK FOR SINGLE CURRENCY BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AMID ALL THE HUBBUB OVER CENTRALBANK RATE CUTS A QUIET TRANSFORMATION IS TAKING PLACE ON EUROPE'S CAPITAL MARKETS BOND YIELDS ARE WELL AND TRULY CONVERGING IT NOW APPEARS INCREASINGLY LIKELY THAT SOMETIME IN THE NEXT YEAR GERMAN 10YEAR GOVERNMENT BONDS WILL YIELD ABOUT THE SAME AS FRENCH 10YEAR GOVERNMENT BONDS AS WILL BELGIAN 10YEAR GOVERNMENT BONDS DUTCH GOVERNMENT BONDS AS OF EARLY THIS SPRING ALREADY YIELD SLIGHTLY LESS THAN GERMAN BONDS YIELD CONVERGENCE HAS BEEN THE KEY BOND MARKET THEME SINCE MEMBERS OF THE EUROPEAN COMMUNITY STARTED TO TAKE THE IDEA OF MONETARY UNION SERIOUSLY ABOUT TWO YEARS AGO WHEN PREPARING FOR THE MAASTRICHT SUMMIT NOW THAT THE DANES HAVE SAID YES TO THE TREATY MORE AND MORE MARKET PARTICIPANTS THINK THERE ARE FEW MAJOR IMPEDIMENTS TO CREATING A SINGLE CURRENCY AT LEAST AMONG THE MOST ECONOMICALLY HEALTHY COUNTRIES THIS HARD CORE OF EC MEMBERS IS WIDELY THOUGHT TO INCLUDE GERMANY FRANCE THE NETHERLANDS LUXEMBOURG AND BELGIUM DENMARK OFTEN IS MENTIONED AS WELL BUT HESITATINGLY BECAUSE IT INSERTED AN OPTOUT CLAUSE IN THE TREATY TO LET THE COUNTRY PASS ON MONETARY UNION EVEN THOUGH ITS FINANCES PROBABLY WILL BE FIT ENOUGH TO ALLOW IT TO PARTICIPATE OUTSIDE THE CORE ARE THE MONETARY MISFITS THAT IN THE PAST 11 MONTHS HAVE DEVALUED THEIR CURRENCIES OR SUSPENDED ALTOGETHER THEIR PARTICIPATION IN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM INCLUDING SPAIN PORTUGAL IRELAND ITALY AND BRITAIN GREECE THE REMAINING EC COUNTRY HAS NEVER HAD ITS CURRENCY IN THE ERM BUT EVEN IN THE SOCALLED SECONDTIER OF EUROPE BOND YIELDS HAVE BEEN FALLING RELATIVE TO GERMAN YIELDS SPANISH BONDS FOR EXAMPLE HAVE GONE FROM YIELDING 554 PERCENTAGE POINTS MORE THAN GERMAN BONDS AT THE BEGINNING OF THE YEAR TO 414 PERCENTAGE POINTS LAST WEEK NEVERTHELESS THE BIGGEST GAINS AND THE MOSTEARNEST SPECULATION SURROUND THE HARDCORE YIELDS PARTICULARLY FRENCH GOVERNMENT BONDS KNOWN AS OATS THE YIELD DIFFERENCE OR SPREAD BETWEEN FRENCH OATS AND GERMAN BONDS HAS NARROWED BY ABOUT 70 SINCE JAN 1 TO JUST 03 PERCENTAGE POINTS CURRENTLY NOW BOND STRATEGISTS WONDER WHETHER FRENCH YIELDS CAN ACTUALLY FALL BELOW GERMAN YIELDS JUDGING FROM THE AMOUNT OF INTEREST SHOWN BY FOREIGN INVESTORS SUCH A SWAP IN YIELDS ISN'T INCONCEIVABLE ROBERT STERLING AN ANALYST AT GT MANAGEMENT PLC IN LONDON THINKS FRENCH YIELDS COULD DROP BELOW GERMAN ONES BY ABOUT JANUARY NEXT YEAR GERMANY HAS A LOT OF PROBLEMS THAT ARE MORE OR LESS UNIQUE MR STERLING SAYS WE CAN IMAGINE LONGTERM GERMAN BONDS UNDERPERFORMING JUST ABOUT ANY OTHER EUROPEAN COUNTRY YOU CARE TO MENTION HE CITES IN PARTICULAR ENTRENCHED UNIONS HEAVY WAGE DANDS AND THE OVERWHELMING REQUIREMENTS OF BRINGING THE EAST QUICKLY IN LINE WITH THE WEST CERTAINLY THERE IS A DISTINCT SOURING OF SENTIMENT TOWARD THE GERMAN MARK AMONG FOREIGN EXCHANGE EXPERTS MARK BRETT AT BARCLAYS DE ZOETE WEDD IN LONDON THINKS THINGS ARE LIKELY TO GET FAR WORSE FOR THE GERMAN ECONOMY AND THAT THEREFORE INTEREST RATES NEED TO BE CUT SHARPLY WE FIND IT INCREDIBLE THAT MARKETS CAN DISCOUNT THE TROUGH OF GERMAN INTEREST RATES A YEAR FROM NOW AT 55 HE WROTE IN A COMMENTARY FRIDAY EVEN IN A NORMAL CYCLE THIS WOULD BE TOO SOON RATES USUALLY LAG THE ECONOMIC CYCLE BY A YEAR OR SO AND THERE IS NOT A SHRED OF EVIDENCE THAT THE GERMAN ECONOMY IS AT A TROUGH EVERYONE SEEMS TO BE WORSENING THEIR FORECASTS FOR GERMANY THIS YEAR AND NEXT BUT BARCLAYS DE ZOETE WEDD ECONOMISTS LAST WEEK ISSUED PROBABLY THE MOST BEARISH ASSESSMENT SO FAR GROSS DOMESTIC PRODUCT CONTRACTING BY A WHOPPING 3 IN 1993 AND GROWING BY JUST 05 IN 1994 BECAUSE OF THAT MR BRETT SUSPECTS THAT SHORTTERM MARK RATES WILL FALL BY 15 TO TWO PERCENTAGE POINTS LOWER THAN MOST PEOPLE CURRENTLY PREDICT ALL THIS ISN'T TO SAY THAT EUROPEAN YIELDS ARE ON AUTOPILOT PATH TOWARD CONVERGENCE OVER THE PAST TWO YEARS POLITICAL UNCERTAINTY IN INDIVIDUAL COUNTRIES HAS REPEATEDLY HINDERED THE PROCESS AND THERE ARE NO SIGNS OF PERVASIVE STABILITY AMONG EUROPE'S ELECTED LEADERS WALTER SCHEPERS CHIEF ANALYST AT WESTCAPITAL IN DUSSELDORF IS STAYING AWAY FROM BOND MARKETS IN ITALY AND SPAIN FOR JUST SUCH REASONS THERE IS TOO MUCH UNCERTAINTY MR SCHEPERS SAYS AND LITTLE TO BE GAINED BY GETTING IN BEFORE THE SPANISH ELECTIONS ON JUNE 6 HE EXPECTS AN EVENTUAL NARROWING OF THE SPREAD BETWEEN FRANCE AND GERMANY TO ABOUT 015 PERCENTAGE POINTS BUT LIKE MANY OTHERS HE HAS DIFFICULTIES CONCEPTUALIZING THE NOTION OF NO DIFFERENTIAL AT ALL AS A GERMAN IMAGINING A ZERO SPREAD WITH FRANCE IS A BIT DIFFICULT MR SCHEPERS SAYS BUT THEN AGAIN NO ONE WOULD HAVE IMAGINED THE SPREAD WITH THE DUTCH WOULD BE NEGATIVE SO WHO KNOWS GLENN DAVIES CHIEF ECONOMIST AT CREDIT LYONNAIS EURO SECURITIES IN LONDON THINKS THERE WILL PROBABLY ALWAYS BE A TENDENCY FOR INTERNATIONAL INVESTORS TO VIEW THE MARK AS THE HARDEST CURRENCY OF EUROPE LARGELY BECAUSE THE TRACK RECORD OF THE GERMAN BUNDESBANK IN KEEPING INFLATION DOWN IS SO GOOD RELATIVE TO THAT OF OTHER EC NATIONS MR DAVIES ADDS THAT THE FRENCH MARKET DOESN'T HAVE THE WIDESPREAD AND LOYAL DOMESTIC INVESTOR BASE THAT GERMANY HAS WHICH WILL ALLOW THE BONN GOVERNMENT TO MORE EASILY FUND ITS BURGEONING BUDGET DEFICIT THAN PARIS WILL HAVE FUNDING ITS OWN SHORTFALL ANALYSTS POINT OUT THAT BRITAIN ALSO IS FACED WITH HEAVY FUNDING REQUIREMENTS THIS YEAR BUT THE GOVERNMENT MIGHT HAVE BEEN OVERLY PESSIMISTIC IN ITS DEFICIT FORECASTS LEAVING THE MARKET SOMEWHAT OVERSOLD INFLATION TOO SEEMS TO BE LESS OF A WORRY GERARD LYONS CHIEF ECONOMIST AT DBK INTERNATIONAL IN LONDON EXPECTS THE SLUGGISH NATURE OF RECOVERY IN THE UNITED KINGDOM WILL PROBABLY CONTAIN PRICE PRESSURE WHICH SHOULD BE GOOD NEWS FOR GOVERNMENT BOND PRICES ITALY REMAINS ENTICING TO MANY FUND MANAGERS BECAUSE LONGTERM YIELDS OF AROUND 122 ARE BY FAR THE HIGHEST AMONG EC COUNTRIES THE LONDON BOND BROKING CO AWARDED ITALIAN GOVERNMENT BONDS KNOWN AS BTPS FOUR STARS IN ITS WEEKLY BONDOMETER UP FROM ONE STAR A WEEK EARLIER THE ATTRACTIONS OF BTPS ARE POTENTIALLY TRANSFORMED BY THE ITALIAN AUTHORITIES' DECISION LAST WEEK TO SPEED UP REPAYMENT TO FOREIGNERS OF WITHHOLDING TAX ON INTEREST RECEIPTS LONDON BOND BROKING SAID IN A REPORT ISSUED FRIDAY THE MARKET REACTION DOES NOT ATTACH ENOUGH WEIGHT TO THE FACT THAT PRIME MINISTER CARLO CIAMPI AS AN EXCENTRAL BANKER IS PROBABLY WELLAWARE OF WHAT NEEDS TO BE DONE TO MAKE BTPS ATTRACTIVE TO FOREIGN INVESTORS AND GIVEN HIS GOVERNMENT'S HUGE FUNDING TASK IS LIKELY TO BE DETERMINED TO DO IT THE LONDON BOND BROKING ANALYSTS CONSIDER THAT CURRENT ITALIAN YIELDS ADEQUATELY DISCOUNT THE SIGNIFICANT POLITICAL RISKS WHICH STILL REMAIN IN ITALY IF THE MARKET HAS REASON TO DISMISS ITS SKEPTICISM OVER WITHHOLDING TAX BTPS WILL PROBABLY STAGE A FURTHER SHARP ADVANCE 9305240009 930524 BUSINESS BRIEF KONICA CORP A DECLINE IN PRETAX PROFIT IS LINKED TO POOR ECONOMY KONICA CORP A MAJOR JAPANESE MAKER OF PHOTOSENSITIVE PRODUCTS SAID ITS UNCONSOLIDATED PRETAX PROFIT IN THE YEAR ENDED MARCH 31 TOTALED 762 BILLION YEN 689 MILLION IN THE PREVIOUS YEAR THE COMPANY REPORTED PRETAX PROFIT OF 1149 BILLION YEN BUT BECAUSE OF A CHANGE IN KONICA'S ACCOUNTING YEAR THE RECENTLY ENDED YEAR COMPRISED 11 MONTHS AND 11 DAYS RENDERING COMPARISONS WITH PRIOR YEARS INVALID KONICA CITED WEAK PRODUCT DEMAND IN A SLUGGISH ECONOMY ADDING THAT THE YEN'S STRENGTH AGAINST OTHER CURRENCIES WORSENED THE ENVIRONMENT FOR EXPORTS THE COMPANY SAID IT DOESN'T EXPECT CONDITIONS TO IMPROVE IN THE CURRENT FISCAL YEAR 9305240008 930524 STOCKS' GYRATIONS LEAVE BULLS BEARS EXHAUSTED HEARD ON THE STREET PROGRAM TRADES SOAR PROVOKING LITTLE OUTCRY BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK REMEMBER PROGRAM TRADING IT'S BIG AGAIN AND THIS TIME IT'S CAUSING NEITHER THE 100POINT SWINGS NOR THE OUTCRY THAT IT DID IN THE PAST COMPUTERGUIDED PROGRAM TRADING ON THE NEW YORK STOCK EXCHANGE SURGED TO 148 OF BIG BOARD VOLUME IN MARCH AND 121 IN APRIL IT WAS THE HEAVIEST BACKTOBACK PROGRAMTRADING VOLUME SINCE THE EXCHANGE STARTED PUBLISHING DATA ON THE ACTIVITY IN 1988 IT'S EXTREMELY ACTIVE AGAIN SAYS DUDLEY EPPEL HEAD OF STOCK TRADING AT DONALDSON LUFKIN & JENRETTE WATCHING PROGRAM TRADING SLAM THE MARKET FRIDAY AFTERNOON HE DECLARES THESE STOCKS ARE JUST ALL OVER THE PLACE ONE REASON THE MARKET WHILE AT RECORD LEVELS SHOWS SIGNS OF CRESTING BIG INVESTORS ARE ZOOMING IN AND OUT OF STOCK GROUPS OFTEN THROUGH PROGRAM PURCHASES AND SALES TO PICK UP PROFITS WHEN THEY CAN THE MARKET'S GETTING IN A RANGE WHERE THE TWO SIDES ARE BEATING EACH OTHER UP THE BULLS AND THE BEARS SAYS ROY NEFF A PARTNER AT COOPER NEFF & ASSOCIATES A PHILADELPHIA SECURITIES FIRM THAT IS AMONG THE MOSTACTIVE PROGRAMMERS THAT TWOSIDED ACTIVITY HAS SET UP SOME PROGRAM OPPORTUNITIES IF YOU'RE WILLING TO TRADE FOR SMALL PROFITS SO HOW COME HARDLY ANYBODY'S COMPLAINING A COLLAR INSTALLED AFTER THE 1987 CRASH EFFECTIVELY STIFLES PROGRAM TRADING EVERY TIME THERE'S A 50POINT SWING IN THE DOW JONES INDUSTRIAL AVERAGE WHAT'S HAPPENING NOW IS THAT PROGRAM TRADING IS HELPING TO KEEP THE MARKET IN A TRADING RANGE BECAUSE INVESTORS HAVE GROWN USED TO A PATTERN OF 50POINTSONEWAY HALT ZIGZAGBACK AND ENDNEARTHESTARTINGLINE SUCH PATTERNS ARE HAZARDOUS MAINLY TO MINUTETOMINUTE TRADERS SUCH AS MR EPPEL UNLIKE IN THE LATE 1980S WHEN CHARLES SCHWAB DERIDED THE RAPID MULTISTOCK PROGRAM TRADING AS THE GREAT WHITE SHARK OF WALL STREET THERE ISN'T ANY MAJOR PUBLIC OUTCRY FOR STARTERS MOST INVESTORS SIMPLY DON'T REALIZE THAT PROGRAM TRADING HAS CREPT BACK TO SUCH A HIGH LEVEL OTHERS PERHAPS HAVE BEEN CONVINCED BY ACADEMICS AND THE EXCHANGES THAT PROGRAM TRADING WAS NEVER QUITE THE EVIL IT WAS PORTRAYED AS IN ADDITION THE EXCHANGE'S RULE EFFECTIVELY SLOWS DOWN PROGRAM TRADING DURING BIG MARKET MOVEMENTS THOUGH IT DOESN'T STOP IT COMPLETELY THE BIGGEST REASON FOR THE LACK OF OUTCRY HOWEVER IS THAT MOST INVESTORS WON'T COMPLAIN ABOUT SUCH THINGS UNLESS THERE'S A MARKET CRASH OR A MINICRASH TO BLAME PROGRAM TRADES FOR AS IN 1987 AND 1989 IF THE STOCK MARKET TAKES A TUMBLE FROM ITS CURRENT HEIGHTS AS SOME ANALYSTS FEAR IT COULD THERE COULD BE ANOTHER BACKLASH THE BIG BOARD ITSELF IS RESPONSIBLE FOR SOME OF THE PROGRAMTRADING INCREASE IT HAS BEEN ENCOURAGING BIG INSTITUTIONS TO USE ITS NEW AFTERHOURS CROSSING SESSION TO DO PROGRAM TRADES RATHER THAN SEND THEM TO LESSREGULATED OVERSEAS MARKETS AS IN THE PAST VOLUME DURING THIS SESSION HAS MORE THAN DOUBLED THIS YEAR TO NEARLY 10 MILLION SHARES BOUGHT AND SOLD A DAY MEANWHILE THE INCREASED BIG BOARD PROGRAM TRADING IS ALSO SPILLING OVER TO MOVE PRICES IN THE NASDAQ OVERTHECOUNTER MARKET SAY OTC TRADERS THERE IS DEFINITELY INCREASED VOLATILITY CAUSED BY PROGRAMS SAYS JERRY NEWMAN OF COWEN & CO HE IS SEEING MORE OF A QUICK PRICE REACTION LATELY IN BIG NASDAQ STOCKS SUCH AS MICROSOFT AND INTEL PROGRAM TRADING AS THE BIG BOARD DEFINES IT IS SIMULTANEOUS TRADING OF 15 OR MORE DIFFERENT STOCKS WITH THE TRADE VALUED AT 1 MILLION OR MORE THE MOST COMMON FORM REMAINS INDEX ARBITRAGE IN WHICH TRADERS JUGGLE OFFSETTING AMOUNTS OF STOCKS IN NEW YORK AND STOCKINDEX FUTURES IN CHICAGO TRYING TO PROFIT FROM BRIEF DISPARITIES IN PRICES IT TAKES A LOT OF TRADING MILLIONS OF DOLLARS IN SHARES TO MAKE A WORTHWHILE PROFIT THE MOSTACTIVE BROKERAGE FIRMS CURRENTLY DOING PROGRAM TRADING FOR THEMSELVES AND CUSTOMERS INCLUDE FIRST BOSTON WITH 338 MILLION SHARES IN THE WEEK ENDED MAY 14 MORGAN STANLEY JAPAN'S NOMURA SECURITIES KIDDER PEABODY AND OTHER FIRMS INCLUDING COOPER NEFF AND UBS SECURITIES SOME ACTIVE TRADERS LIKE MERRILL LYNCH SAY THEY DO PROGRAM TRADING FOR CUSTOMERS SUCH AS PENSION FUNDS BUT NOT FOR THE FIRM'S OWN ACCOUNT COOPER NEFF'S MR NEFF SAYS HIS FIRM HAS PUT A LOT OF BRAINPOWER INTO ITS PROGRAM TRADING HE WON'T DIVULGE THE EXACT STRATEGIES EMPLOYED ALL I CAN SAY IS THE COMPUTER TELLS US TO BUY AND SELL SO WE WIND UP ON TOP SOME TRADERS SAY THE MARKET'S BETTERTHANEXPECTED STRENGTH AFTER THE ELECTION CONTRIBUTED TO THE INCREASED PROGRAM ACTIVITY MANY BIG INSTITUTIONS THAT HAD THEIR MONEY IN PLAINVANILLA INDEX FUNDS DECIDED TO LIQUIDATE THOSE POSITIONS AND SET UP NEW PROGRAMS GEARED TO STOCK GROUPS OR SPECIALIZED INDEXES ALL OF WHICH INVOLVED PROGRAM BUYING AND SELLING THE BIG BOARD DOESN'T CONSIDER THE PROGRAMTRADING INCREASE OF RECENT MONTHS STATISTICALLY IMPORTANT WE'RE DOING A LOT MORE TRADING PERIOD SAYS JAMES COCHRANE A BIG BOARD SENIOR VICE PRESIDENT YES THERE'S MORE PROGRAM TRADING THERE'S MORE TRADING OF ALL SORTS THIS YEAR THAT SAID SAYS MR COCHRANE THERE HAVE BEEN SOME EXTRAORDINARY DAYS OF PROGRAM TRADING ACTIVITY ON APRIL 5 FOR EXAMPLE A RECORD 1142 MILLION SHARES WERE BOUGHT AND SOLD DURING THE EXCHANGE'S AFTERHOURS SESSION FOR PROGRAM TRADES ALTHOUGH THERE ARE ACTUALLY FEWER MAJOR BROKERAGE FIRMS DOING PROGRAM TRADING THESE DAYS THE ONES REMAINING LIKE COOPER NEFF ARE MORE SERIOUS ABOUT IT MICHAEL FLANAGAN OF LIPPER ANALYTICAL SECURITIES SAYS HE SUSPECTS THAT THE FIRMS LEFT DOING THE TRADES ARE EVEN MORE ACTIVE THAN EVER PICKING UP THE SLACK IN THE PAST OVERALL PROGRAM ACTIVITY ON THE BIG BOARD HAS AVERAGED ABOUT 20 MILLION DAILY SHARES BOUGHT AND SOLD ACCOUNTING FOR 10 TO 11 OF BIG BOARD OVERALL VOLUME ACCORDING TO DATA PUBLISHED SINCE JUNE 1988 THE WEEKLY TABLE APPEARS IN THE WALL STREET JOURNAL EACH FRIDAY THE PAST TWO MONTHS HAVE BEEN A DIFFERENT STORY IN MARCH PROGRAM TRADING SET A RECORD FOR VOLUME AND A NEARRECORD PERCENTAGE SHARE OF OVERALL BIG BOARD TRADING 374 MILLION SHARES A DAY OR 148 OF THE EXCHANGE'S ROBUST VOLUME FOR THAT MONTH IN APRIL IT WAS 341 MILLION SHARES OR 121 OF VOLUME THE MAY AVERAGE IS EXPECTED TO BE SIMILARLY HIGH FOR THE FIRST TWO WEEKS OF THE MONTH PROGRAMS AVERAGED 251 MILLION SHARES OR 101 OF VOLUME BUT THAT DOESN'T YET INCLUDE THE HEAVY PROGRAM ACTIVITY CAUSED BY FRIDAY'S MONTHLY EXPIRATION OF STOCKINDEX OPTIONS AND FUTURES WHICH IS SURE TO PUSH THE AVERAGE UP SHARPLY THE NASDAQ OTC MARKET HAS BEEN MOVED BY LARGERTHANUSUAL PROGRAM ACTIVITY ON MANY RECENT DAYS MANY PROGRAMS SUCH AS THOSE INVOLVING STOCKS IN STANDARD & POOR'S 500STOCK INDEX INCLUDE LARGER NASDAQ ISSUES TRADERS SAY RECENT PROGRAM ACTIVITY HAS ACCELERATED MARKET MOVEMENTS IN THE OVERALL OTC MARKET AND IN INDIVIDUAL STOCKS INCLUDING CISCO SYSTEMS APPLE COMPUTER MICROSOFT AND INTEL WHILE MOST TRADERS AGREE THAT PROGRAM TRADING ACCELERATES STOCKMARKET MOVES IT'S A LOT TOUGHER THAN IT USED TO BE FOR THE PROGRAMMERS TO DRIVE DOWN THE MARKET RELENTLESSLY ON A GIVEN DAY UNDER THE EXCHANGE'S 50POINT RULE OR COLLAR WHENEVER THE INDUSTRIAL AVERAGE MOVES UP OR DOWN 50 POINTS ALL INDEX ARBITRAGE MUST BE STABILIZING THAT IS IF THE MARKET IS DOWN 50 POINTS SELL ORDERS CAN ONLY BE ENTERED WHEN STOCKS MOVE BACK UPWARD AND VICE VERSA YET TRADERS SAY THE DAYTODAY IMPACT OF MULTISTOCK TRADING IS STILL FELT THEY SAY NORMAL 10POINT MOVES IN THE MARKET CONTINUE TO BE TRANSFORMED INTO 25POINT MOVES THROUGH PROGRAM TRADING A LOT CAN HAPPEN IN 50 POINTS ONE TRADER COMPLAINS THE 50POINT COLLAR WAS INVOKED 16 TIMES LAST YEAR THE EXCHANGE SAYS SO FAR THIS YEAR IT BEEN TRIGGERED AT A FASTER PACESEVEN TIMES ALREADY INCLUDING DURING WEDNESDAY'S 5564POINT MARKET RALLY AS USUAL THE COLLAR CAUSED THE MARKET TO COOL DOWN AFTER THE INDUSTRIAL AVERAGE HAD RISEN 50 POINTS AND THE COLLAR CLICKED IN THE MARKET COULD MUSTER ONLY A FEW MORE POINTS' ADVANCE SEE RELATED STORY ABREAST OF THE MARKET INDEXES MASK THE DIVERGENCE AMONG ISSUES WSJ MAY 24 1993 9305240007 930521 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9305240006 930524 BUSINESS BRIEF ZIONS BANCORP SUBSIDIARY PLANS TO ACQUIRE DISCOUNT CORP OF NEW YORK ZIONS FIRST NATIONAL BANK A UNIT OF ZIONS BANCORP OF SALT LAKE CITY SAID IT PLANS TO ACQUIRE DISCOUNT CORP OF NEW YORK IN A DEAL VALUED AT 65 MILLION UNDER TERMS OF THE AGREEMENT ZIONS WILL PAY 8 FOR EACH SHARE OF DISCOUNT COMMON STOCK SUBJECT TO ADJUSTMENT BASED IN PART ON A CLOSING AUDIT OF DISCOUNT'S BALANCE SHEET ZIONS SAID DISCOUNT A US GOVERNMENT SECURITIES DEALER IN NEW YORK WILL BROADEN ZIONS' PORTFOLIO OF PRODUCTS AND EXPAND OUR INSTITUTIONAL CLIENT MIX HARRIS SIMMONS ZIONS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE ACQUISITION IS STILL SUBJECT TO APPROVAL BY DISCOUNT STOCKHOLDERS OF RECORD ON JUNE 11 AND CERTAIN REGULATORY APPROVAL ZIONS SAID AFTER COMPLETION OF THE ACQUISITION EXPECTED THIS SUMMER DISCOUNT WILL OPERATE AS A UNIT OF ZIONS FIRST NATIONAL BANK IN NATIONAL OVERTHECOUNTER TRADING ZIONS CLOSED AT 4175 A SHARE UP 175 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DISCOUNT ROSE 2 TO 725 A SHARE 9305240004 930524 USG CORP'S DEBT UPGRADED BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC UPGRADED USG CORP'S EXISTING LONGTERM DEBT AND ASSIGNED RATINGS TO NEW LONGTERM SECURED DEBT THAT THE CHICAGO BUILDINGPRODUCTS CONCERN ISSUED RECENTLY AS PART OF A REORGANIZATION THE RATINGS CONCERN BOOSTED ITS RATING ON USG'S EXISTING 8 SENIOR NOTES AND 8 3/4 SENIOR SINKING FUND DEBENTURES TO SINGLEB3 FROM CAA THE EXISTING 7 7/8 SENIOR SINKING FUND DEBENTURES MEDIUMTERM NOTES AND INDUSTRIAL REVENUE BONDS OF USG'S US GYPSUM UNIT WERE UPGRADED TO SINGLEB2 FROM CAA IN ADDITION MOODY'S ASSIGNED A SINGLEB2 RATING TO USG'S NEWLY ISSUED 10 1/4 SENIOR NOTES AND A SINGLEB3 RATING TO NEW 8 AND 9 SENIOR NOTES THE NEW DEBT WAS ISSUED AS PART OF A RECENT PREPACKAGED CHAPTER 11 FILING IN WHICH USG WAS BRIEFLY UNDER BANKRUPTCYCOURT PROTECTION BUT EMERGED THIS MONTH UNDER THAT PLAN THE COMPANY'S CREDITORS FORGAVE ABOUT 14 BILLION OF USG'S DEBT IN EXCHANGE FOR A TOTAL 97 EQUITY STAKE THE RATING UPGRADES AND ASSIGNMENTS RECOGNIZE USG'S HIGHLY LEVERAGED FINANCIAL STRUCTURE NEGATIVE EQUITY POSITION WEAK DEBT COVERAGES AND CERTAIN RIGHTS OF THE BANK WITH RESPECT TO THEIR LARGE DEBT HOLDINGS OF USG MOODY'S SAID BUT IT ADDED THAT THE NEW RATINGS ALSO REFLECT THE COMPANY'S LEADING DOMESTIC MARKET POSITION IN THE GYPSUM WALLBOARD BUSINESS AS WELL AS THOSE OPERATIONS' LOWCOST STRUCTURE AND THE POTENTIAL FOR SIGNIFICANTLY IMPROVED EARNINGS AND CASH FLOW BECAUSE OF THE COMPANY'S HIGH DEGREE OF OPERATING LEVERAGE AND MANAGEMENT'S DEPTH AND EXPERTISE WITH THE BANKRUPTCY REORGANIZATION NOW EFFECTIVE USG'S 2 1/2YEAR FINANCIAL RESTRUCTURING PROCESS IS NOW OVER MOODY'S SAID ALLOWING MANAGEMENT TO FOCUS ON ITS CORE OPERATIONS 9305240003 930524 WEAK FORCE SHAREHOLDER ACTIVISM DESPITE HOOPLA LEAVES MOST CEOS UNSCATHED ONLY BIG FAMOUS COMPANIES DRAW CONSISTENT SCRUTINY OF INSTITUTIONAL OWNERS A CASE STUDY IN MISSISSIPPI BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL TO HEAR SOME PEOPLE TELL IT CORPORATE CHIEFTAINS ARE ON THE RUN BOARDROOM REVOLTS AT GIANT COMPANIES SUCH AS GM AND IBM GIVE THE IMPRESSION THAT RISING SHAREHOLDER ACTIVISM HAS TOP EXECUTIVES SCARED AND WEAKENED AS THEY TRY DESPERATELY TO HANG ON TO THEIR JOBS THE REALITY HOWEVER IS QUITE DIFFERENT AT MOST US COMPANIES FIRST MISSISSIPPI CORP FOR EXAMPLE HAS MADE A DECADE'S WORTH OF STRATEGIC MISTAKES ITS EARNINGS HAVE BEEN FLAT AND ITS STOCK PRICE IS ROUGHLY WHERE IT WAS IN 1982 EVEN THOUGH THE BULL MARKET HAS MORE THAN TRIPLED THE VALUE OF THE AVERAGE COMPANY'S STOCK YET THROUGHOUT ALL THAT J KELLEY WILLIAMS HAS REMAINED CHIEF EXECUTIVE OFFICER AND EVEN GOT THE ADDED JOB OF CHAIRMAN HE DOESN'T SEEM WORRIED ABOUT HIS JOB OR UNDER ANY URGENT PRESSURE FROM DIRECTORS AND HE SAYS THAT'S HOW THINGS SHOULD BE SLAVISH OBEDIENCE TO ACTIVIST SHAREHOLDERS LOCKS YOU INTO A SHORTTERM TIME FRAME HE SAYS THAT'S BAD FOR TECHNOLOGY DEVELOPMENT AND IT'S BAD FOR THE COUNTRY AND THE ECONOMY FIRST MISSISSIPPI ISN'T AN ISOLATED CASE TO GAUGE THE DEPTH OF SHAREHOLDER ACTIVISM THE WALL STREET JOURNAL IDENTIFIED A NUMBER OF SIZABLE COMPANIES WITH LONGTERM PROBLEMS AND TRIED TO DETERMINE WHETHER THEIR CEOS WERE FACING INCREASED PRESSURE FROM DIRECTORS OR SHAREHOLDERS GENERALLY SPEAKING THE ANSWER WAS NO ALTHOUGH MANY DIRECTORS HAVE CLEARLY BECOME MORE AWARE OF THEIR FIDUCIARY RESPONSIBILITIES TO SHAREHOLDERS AND MANY SHAREHOLDERS HAVE CLEARLY BECOME MORE AWARE OF THEIR RIGHTS BUT IN CONTRAST TO THE 1980S TAKEOVER BINGE WHICH CUT THROUGH HUNDREDS OF COMPANIES LIKE A SHARP SCYTHE SHAREHOLDER ACTIVISM SEEMS MORE LIKE A SCALPEL AND A DULL ONE AT THAT THE BIG INSTITUTIONAL HOLDERS THAT CAN APPLY PRESSURE AREN'T SURPRISED THE 75 BILLION CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM TARGETS ONLY 12 COMPANIES AT A TIME AND MAY CUT BACK TO 10 BECAUSE OF LIMITED STAFF TIME SAYS RICHARD KOPPES CALPERS'S GENERAL COUNSEL THE NEW YORK STATE TEACHERS RETIREMENT FUND ANOTHER ACTIVIST INVESTOR LOOKS AT GOVERNANCE ISSUES AT 25 TO 50 OF THE 1300 COMPANIES IN ITS PORTFOLIO A SPOKESMAN SAYS REALISTICALLY WE CAN ONLY FOCUS ON THE BIG COMPANIES HE SAYS FIRST MISSISSIPPI WHOSE 525 MILLION IN ANNUAL REVENUE PUTS IT JUST SHORT OF A FORTUNE 500 LISTING DOESN'T MAKE THE CUT AT THE NEW YORK FUND A SPOKESMAN FOR THE FUND THE SECONDLARGEST INSTITUTIONAL INVESTOR IN FIRST MISSISSIPPI SAYS WE REALLY DON'T KNOW ANYTHING ABOUT THE SITUATION THE COMPANY'S LARGEST INSTITUTIONAL SHAREHOLDER NEW YORK'S ALLIANCE CAPITAL MANAGEMENT WON'T COMMENT IN ANY CASE THE WEAPONS SUCH SHAREHOLDERS CAN WIELD THE THREAT OF BAD PUBLICITY OR A PROXY FIGHT ON CORPORATEGOVERNANCE ISSUES AREN'T VERY POWERFUL INSTITUTIONAL ACTIVISM IS NEVER GOING TO AMOUNT TO MUCH SAYS MICHAEL JENSEN A HARVARD BUSINESS SCHOOL PROFESSOR IT WORKS MAINLY THROUGH PUBLIC EMBARRASSMENT IN THE PRESS SWAYING THE CORPORATE GIANTS THAT DOMINATE THE FRONT PAGES HE SAYS BUT THE PRESS ISN'T INTERESTED IN MIDDLEMARKET COMPANIES MOREOVER MANY MIDSIZED AND SMALLER COMPANIES' MANAGERS ASSIDUOUSLY RESPOND TO SHAREHOLDER DEMANDS ALREADY MORE OF SUCH FIRMS RETAIN LINKS TO FOUNDERS' FAMILIES OR VENTURE CAPITALISTS OFTEN LEAVING THEM WITH A POWERFUL SHAREHOLDER WHO CAN PRESS BEHIND THE SCENES FOR CHANGE A STUDY BY JAMES BRICKLEY OF THE UNIVERSITY OF ROCHESTER'S SIMON GRADUATE SCHOOL OF BUSINESS FOUND THAT CEOS OF SMALLER COMPANIES WERE SLIGHTLY MORE LIKELY TO LOSE THEIR JOBS THAN THOSE AT LARGER ONES JUST AS IT IS EASY TO FIND CASES IN WHICH CORPORATE UPHEAVAL MIGHT HAVE BEEN EXPECTED BUT DIDN'T OCCUR IT ALSO IS EASY TO FIND CASES IN WHICH SHAREHOLDERS RATTLE THEIR SWORDS TO NO AVAIL BOISE CASCADE CORP THE IDAHO PAPERMAKER HAS BEEN UNDER FIRE FOR YEARS FOR SPENDING 22 BILLION TO EXPAND CAPACITY EVEN AS THE PAPER INDUSTRY BEGAN A DEEP SLIDE IN 1989 CALPERS PUT THE COMPANY ON ITS TARGET LIST AND CRITICIZED IT SHARPLY IN A LETTER LAST SEPTEMBER IN RESPONSE CEO JOHN FERY VISITED THE FUND THE FOLLOWING MONTH NOT TO OFFER A NEW TURNAROUND PLAN BUT TO ARGUE THAT THE INVESTMENTS WILL PAY OFF WHEN THE INDUSTRY EVENTUALLY REBOUNDS CALPERS'S MR KOPPES SAYS THAT AFTER MEETING WITH DIRECTORS IN DECEMBER THE FUND'S STAFF IS SATISFIED THAT CAPITAL SPENDING WASN'T DRIVEN BY THE CEO'S EGO BUT HE SAYS WE REMAIN CONCERNED THAT THEY MADE HUGE INVESTMENTS IN AN AREA WHERE THEY SHOULDN'T HAVE SPENT ANY MONEY BOISE CASCADE SAYS THAT IT HAS BEEN HURT BY THE PAPER INDUSTRY'S UNUSUALLY LONG AND DEEP SLUMP BUT THAT DEMAND HAS BEGUN TO PICK UP ALONG WITH THE ECONOMY WHERE BOARDS DO ACT EITHER ON THEIR OWN OR IN RESPONSE TO SHAREHOLDER PRESSURE THEY OFTEN DO SO TOO LATE TO AVOID SERIOUS DAMAGE HARTMARX CORP THE CHICAGO MAKER OF MEN'S SUITS LOST 320 MILLION OVER THREE YEARS MOSTLY ON ITS RETAIL OPERATIONS BEFORE THE BOARD PRESSURED CEO HARVEY WEINBERG TO RESIGN CLEARING THE WAY TO SELL MOST OF THE STORES THE COMPANY'S VALUE ON THE STOCK MARKET HAS PLUMMETED TO ABOUT 200 MILLION FROM ABOUT 600 MILLION IN 1987 SEVERAL BOARD MEMBERS DIDN'T RETURN TELEPHONE CALLS JAMES E CONDON THE COMPANY'S TREASURER SAYS THE BOARD DIDN'T WANT TO BE SEEN AS PULLING THE PLUG TOO EARLY IN RESPONSE TO WHAT SEEMED TO BE SHORTTERM PRESSURES SUCH AS A RISE IN WOOL PRICES AND WHITECOLLAR LAYOFFS ONE PERSON ACQUAINTED WITH SEVERAL DIRECTORS SAYS HARVEY KEPT ASKING FOR A LITTLE MORE TIME AND THEY COULDN'T MUSTER UP THE NERVE TO DENY IT TO HIM AT FIRST MISSISSIPPI MR WILLIAMS SEES SHAREHOLDER ACTIVISM AS A WASTE OF TIME IN A LETTER TO HIS DIRECTORS AFTER AN INTERVIEW WITH THIS NEWSPAPER THE 59YEAROLD CEO WROTE OF A GOVERNANCE GAME THAT IS PLAYED BY THE PRESS FOR FUN AND SPORT AND BY POLITICIANS AND SEC BUREAUCRATS WHO FIND IT MORE FUN THAN TERM LIMITS AND GOVERNMENT REORGANIZATION NO ACTIVISTS ARE PLAYING THAT GAME AT FIRST MISSISSIPPI HOWEVER ALLIANCE CAPITAL WHICH OWNED 106 OF THE SHARES AT THE END OF LAST YEAR SEES ITS HOLDING AS A BET ON THE CHEMICALS BUSINESS MR WILLIAMS SAYS AND THE NEW YORK TEACHERS' FUND HELD A 4 STAKE AT YEAREND AS PART OF A STOCK PORTFOLIO DESIGNED TO REFLECT THE STANDARD & POOR'S 500 INDEX ONLY FOR A TIME IN 1988 DID A FEW SHAREHOLDERS LEAN ON THE COMPANY IN AN EFFORT TO GET IT TO SELL OR SPIN OFF ITS GOLD AND CHEMICALS BUSINESSES AND STOP FUNDING SOME MONEYLOSING TECHNOLOGY VENTURES FIRST MISSISSIPPI AGREED ONLY TO SELL THE GOLD COMPANY BUT EXECUTIVES SAY THAT BY THE TIME THEY OBTAINED A NEEDED TAX RULING GOLD PRICES HAD FALLEN TOO LOW TO MAKE A SALE WORTHWHILE AND WHILE THE ACTIVE INVESTING CREED CALLS FOR COMPANIES TO HAVE INDEPENDENT DIRECTORS WHO DISPASSIONATELY EVALUATE CEOS' DECISIONS ON BEHALF OF SHAREHOLDERS FIRST MISSISSIPPI'S BOARD HAS A CLUBBY REPUTATION THE BOARD HASN'T DONE A GREAT DEAL SAYS G BRYAN DUTT AN ANALYST AT HOWARD WEIL LEBOUISSE FRIEDRICHS IN NEW ORLEANS THEY PRETTY MUCH FOLLOW WILLIAMS'S LEAD THE COMPANY'S 11 OUTSIDE DIRECTORS INCLUDE SEVEN CURRENT OR FORMER MISSISSIPPIANS DIRECTOR PAUL BECKER IS A FORMER HARVARD CLASSMATE OF MR WILLIAMS AND THE NEW YORK FIRM WHERE MR BECKER IS A MANAGING DIRECTOR MITCHELL HUTCHINS ASSET MANAGEMENT INC MANAGES FIRST MISSISSIPPI'S PENSION FUND JAMES CROOK HEADS MELAMINE CHEMICALS INC IN WHICH FIRST MISSISSIPPI HAS A MINORITY STAKE AND HE OWNS REAL ESTATE WITH MR WILLIAMS LELAND SPEED AND MR WILLIAMS ATTEND THE SAME JACKSON CHURCH KELLEY'S MADE A FEW MISTAKES JUDGMENT CALLS LIKE ANYONE MAKES SAYS MAURICE REED JR A DIRECTOR AND JACKSON REALESTATE INVESTOR BUT I'M HIGH ON KELLEY AS A MANAGER MR WILLIAMS WHO HAS RECRUITED SEVERAL DIRECTORS FROM OUTSIDE MISSISSIPPI SAYS THE BOARD IS MORE INVOLVED AND COMMITTED SINCE HE BECAME CEO HE JOINED THE COMPANY IN 1967 AFTER A STINT AS DIVERSIFICATION MANAGER AT A MISSOURI COMPANY AND BECAME PRESIDENT AND CEO IN 1971 TWO YEARS LATER HE QUINTUPLED THE COMPANY'S 26 MILLION IN ANNUAL REVENUE BY BUYING THE FERTILIZER BUSINESS OF ATLANTIC RICHFIELD CO IT SEEMED A GAMBLE BUT SOON THE FEDERAL GOVERNMENT REMOVED PRICE CONTROLS ON FERTILIZER AND FARM EXPORTS BOOMED LATER IN THE 1970S FIRST MISSISSIPPI MADE WELLTIMED INVESTMENTS IN OIL AND GAS EXPLORATION BUT BY 1983 THE COMPANY FACED HARD TIMES AS OIL PRICES CRASHED AND THE FARM BELT WENT BUST ITS RESPONSE WAS TO TRY TO DIVERSIFY INSIDERS SAY THE EFFORT FIT MR WILLIAMS'S TEMPERAMENT JUST RUNNING A BUSINESS BORES HIM ONE SAYS HE WANTED TO DO DEALS SEEKING TO REPLACE THE FERTILIZER EARNINGS FIRST MISSISSIPPI ACQUIRED COAL AND GOLD MINES AND A MAKER OF PERSONALCOMPUTER MEMORY DEVICES FINANCED THE STARTUP OF AN ISRAELI BIOTECHNOLOGY JOINT VENTURE AND BOUGHT AN EXPERIMENTAL TECHNOLOGY CALLED A PLASMA TORCH WHICH USES JETS OF IONIZED GAS TO CREATE VERY HIGH TEMPERATURES IT ALSO BOUGHT A MAKER OF STEEL CASTING EQUIPMENT THAT COUPLED WITH THE TORCH HELD PROMISE FOR MANUFACTURING SOME STEEL PRODUCTS MORE EFFICIENTLY TO PROVE THE TECHNOLOGY IT ACQUIRED A STEEL MILL NEAR JOHNSTOWN PA THE DEALS MET LITTLE CHALLENGE FROM THE BOARD FOR MANY OF THE NEW BUSINESSES FINANCIAL PROJECTIONS PREDICTED PROFITS WITHIN TWO OR THREE YEARS INSIDERS SAY AND THE OUTLAYS SEEMED SMALL IT WAS LIKE A LOT OF BUSINESSES MR REED SAYS THEY DIDN'T COST MUCH TO GET INTO BUT THEN THEY EAT YOU UP DOWN THE ROAD AS FIRST MISSISSIPPI MOVED AWAY FROM ITS CORE FERTILIZER BUSINESS INEXPERIENCE BEGAN TO TAKE ITS TOLL KELLEY WILLIAMS TOLD ME TECHNOLOGY DEVELOPMENT WAS LIKE WILDCAT OIL DRILLING YOU SINK NINE HOLES AND IF ONE COMES BACK YOU'RE OK SAYS MAX AHRENS WHO SOLD THE STEELCASTING COMPANY TO FIRST MISSISSIPPI AND STAYED ON TO HELP MANAGE IT UNTIL LAST YEAR BUT THEY DIDN'T KNOW ANYTHING ABOUT HOW TO RUN A STEEL COMPANY MR WILLIAMS RESPONDS THAT FINISHING EQUIPMENT COSTING 20 MILLION WOULDN'T HAVE BEEN A SMART INVESTMENT AND THAT THE PLANT WAS INTENDED TO PRODUCE SMALL AMOUNTS OF SPECIALTY STEELS HE CONCEDES THAT WE'VE PAID SOME STEEP TUITION TO LEARN THE PLASMA TORCH BUSINESS BUT HE EXPECTS IT TO SWING INTO THE BLACK IN THE NEXT FISCAL YEAR HOWEVER MOST OF THE NEW BUSINESSES FAILED TO PAY OFF THE GOLD MINE AT GOLCONDA NEV STRUGGLED WITH CORROSIVE CHEMICAL PROCESSES THAT RAISED MAINTENANCE COSTS TO 5 MILLION A YEAR FIVE TIMES THE FORECAST SAYS CECIL ALVAREZ WHO MANAGED THE MINE UNTIL LAST YEAR THE OTHER NEW BUSINESSES LOST A CUMULATIVE TOTAL OF 50 MILLION BY THE END OF THE JUNE 1992 FISCAL YEAR MR WILLIAMS SAYS NOT EVEN COUNTING THE 70 MILLION INVESTED THE FISCAL 1992 PROFIT FELL 20 FROM A YEAR EARLIER TO A MEAGER 42 MILLION OR 21 CENTS A SHARE GIVING FIRST MISSISSIPPI A RETURN ON EQUITY OF ONLY 2 MOST OF ITS EARNINGS CAME FROM CHEMICALS AND FROM THE BUSINESS IT TRIED TO DIVERSIFY AWAY FROM FERTILIZER GOLD ALSO WAS A WINNER EARNING 43 MILLION AFTER TAXES AFTER TWO WEAK YEARS BUT COAL POSTED A 48 MILLION OPERATING LOSS A GROUP INCLUDING THE TECHNOLOGY BUSINESSES LOST 96 MILLION YET THERE WASN'T A LOT OF HELLRAISING BY THE BOARD MR REED SAYS SURE THERE WOULD BE A LOT OF QUESTIONS BUT KELLEY ALWAYS HAD ANSWERS AND THEN THERE WASN'T MUCH MORE YOU COULD ASK DIRECTORS CITED PAST SUCCESSES IN GIVING MANAGEMENT MORE TIME THE SUCCESSFUL CHEMICALS BUSINESS ALSO HAD A ROCKY STARTUP SAYS GERALD TURNER A DIRECTOR AND CHANCELLOR OF THE UNIVERSITY OF MISSISSIPPI THAT MADE THIS BOARD MORE PATIENT THAN OTHERS MIGHT HAVE BEEN BY THE LATE 1980S DR TURNER SAYS THAT PATIENCE WAS WEARING THIN ALTHOUGH HE AND OTHER DIRECTORS DECLINE TO GIVE ANY DETAILS HE SAYS THAT STARTING ABOUT 1988 THEY BECAME CONCERNED AS THE LOSSES BEGAN INCREASING THE COMPANY'S DEBT WHICH AT 161 MILLION AMOUNTED TO 96 OF EQUITY AS OF MARCH 31 UP FROM ONLY 21 FIVE YEARS AGO THEY PUSHED MR WILLIAMS TO PARE DOWN AND FOCUS DR TURNER SAYS BUT THE PRESSURE INVOLVED ONLY GENERAL DIRECTIONS DR TURNER SAYS AND DETAILS ABOUT WHAT TO PARE WERE LEFT TO MR WILLIAMS AND EVEN THEN THE DIRECTORS WEREN'T CONCERNED ABOUT MR WILLIAMS WE ALL HAVE TREMENDOUS RESPECT FOR KELLEY AND HIS TEAM DR TURNER SAYS IN 1988 EVEN WHILE TRYING TO REIN IN MR WILLIAMS THEY ELECTED HIM CHAIRMAN TO REPLACE A RETIRING FOUNDER LEROY PERCY SOME SMALLER OPERATIONS HAVE BEEN SOLD INCLUDING THE BIOTECH STARTUP AND A MAKER OF HIGHTEMPERATURE INSULATION ALTHOUGH MR WILLIAMS WON'T COMMENT MR AHRENS AND OTHERS IN THE STEEL INDUSTRY SAY THE STEEL MILL IS BEING SHOPPED AROUND MEANWHILE FIRST MISSISSIPPI REMAINS HOSTAGE TO THE SAME FORCES THAT THE NEW BUSINESSES WERE SUPPOSED TO COMBAT THE SWINGS OF WORLD COMMODITY PRICES EAST EUROPEAN AND LATIN AMERICAN PRODUCTION IS GLUTTING THE FERTILIZER MARKET WHEN YOU'RE HOT YOU'RE HOT AND RIGHT NOW WE'RE NOT MR WILLIAMS SAYS J KELLEY WILLIAMS 59 PRESIDENT AND CEO FIRST MISSISSIPPI CORP 9305240002 930524 GM LOOKS FOR PARTNERS FOR EDS UNIT AND MAY CONSIDER SELLING STAKE IN IT BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL OKLAHOMA CITY GENERAL MOTORS CORP IS IN TALKS WITH A NUMBER OF POTENTIAL TELECOMMUNICATIONS PARTNERS FOR ITS ELECTRONIC DATA SYSTEMS CORP UNIT AND MIGHT CONSIDER SELLING AN OWNERSHIP STAKE IN EDS A SENIOR EXECUTIVE SAID WE WOULDN'T RULE OUT ANYTHING SAID EXECUTIVE VICE PRESIDENT HARRY J PEARCE WHO OVERSEES EDS AND GM'S OTHER TECHNOLOGY UNIT GM HUGHES ELECTRONICS CORP MR PEARCE MADE HIS REMARKS TO REPORTERS FRIDAY DURING A 4 1/2HOUR ANNUAL MEETING THAT GAVE SOME 700 SHAREHOLDERS THEIR FIRST LOOK AT THE NEW MANAGEMENT TEAM INSTALLED AFTER LAST NOVEMBER'S BOARDROOM REVOLT THE MAIN THRUST OF THE MEETING WAS AN EFFORT LED BY NONEXECUTIVE CHAIRMAN JOHN G SMALE TO SELL A REVITALIZED GM TO STOCKHOLDERS NO MORE WISHFUL THINKING OR ENDLESS ANALYZING DECLARED WILLIAM E HOGLUND EXECUTIVE VICE PRESIDENT IN A BLUNT REPUDIATION OF THE COMPANY'S RECENT PAST ALL AROUND THE COMPANY NO MORE THUMBSUCKING THE FOCUS IS ON ACTION AT A NEWS CONFERENCE AFTER THE MEETING MR SMALE WHO LED THE REVOLT THAT OUSTED FORMER CHAIRMAN ROBERT C STEMPEL EXPRESSED STRONG CONFIDENCE IN THE COMPANY'S CURRENT MANAGEMENT I REALLY BELIEVE WE HAVE THE RIGHT ORGANIZATION IN PLACE HE TOLD REPORTERS THESE ARE VERY VERY GOOD PEOPLE MR SMALE RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT PROCTER & GAMBLE CO SAID HE ISN'T SURE HOW LONG HE'LL REMAIN CHAIRMAN OF GM GM HELD ITS ANNUAL MEETING HERE BECAUSE IT'S HOME TO ONE OF THE COMPANY'S HIGHEST QUALITY ASSEMBLY PLANTS BUT THE FACTORY WHICH SHAREHOLDERS WERE INVITED TO TOUR AFTER THE MEETING ALSO ILLUSTRATES SOME OF GM'S BIGGEST CHALLENGES THE CARS IT BUILDS THE OLDSMOBILE CUTLASS CIERA AND BUICK CENTURY WERE LAUNCHED A DECADE AGO MAKING THEM AMONG THE OLDEST MODELS SOLD IN THE US BECAUSE THEY WEREN'T ENGINEERED TO BE MANUFACTURED EFFICIENTLY GM NEEDS NEARLY 4400 EMPLOYEES AT THE PLANT TO BUILD ABOUT 250000 CARS A YEAR THAT'S A SHARP CONTRAST TO CHRYSLER CORP'S FACTORY IN BRAMALEA ONTARIO WHERE 3000 EMPLOYEES ARE BUILDING MODERN LH SEDANS AT THE RATE OF 270000 A YEAR CHRYSLER HELD ITS ANNUAL MEETING NEAR THE PLANT LAST WEEK AND ALSO CONDUCTED SHAREHOLDER TOURS GM'S OKLAHOMA CITY PLANT HAS MADE MAJOR STRIDES IN REDUCING ITS WORK FORCE FROM WELL OVER 5000 A FEW YEARS AGO THE NEED FOR FURTHER CUTS ILLUSTRATES A PROBLEM GM FACES EVERYWHERE BUT THE COMPANY DID REPORT ONE BIT OF PROGRESS OVER THE WEEKEND GM SAID IT WILL SAVE 800 JOBS AT A PARTS FACTORY ORIGINALLY TARGETED FOR SHUTDOWN THIS YEAR THE CHANGE OCCURRED BECAUSE THE LOCAL UNION VOWED TO MAKE THE PLANT COMPETITIVE GM WILL GO AHEAD WITH PLANS TO ELIMINATE 750 JOBS ASSOCIATED WITH THE PRODUCTION OF CHROME BUMPERS AT THE BIG DELCO CHASSIS FACTORY IN LIVONIA MICH THAT BUSINESS IS UNCOMPETITIVE AND WILL BE MOVED TO AN OUTSIDE COMPANY A GM SPOKESWOMAN SAID GM ALSO HAD PLANNED TO CLOSE THE REST OF THE PLANT WHICH MAKES SUSPENSION PARTS AND EMPLOYS SOME 800 PEOPLE REPRESENTED BY THE UNITED AUTO WORKERS UNION BUT NOW GM WILL GIVE THAT SECTOR OF THE PLANT ANOTHER THREE YEARS TO SHOW IT CAN BECOME COMPETITIVE THE DEAL COULD WELL OFFER A ROAD MAP FOR THIS SUMMER'S NATIONAL CONTRACT TALKS WITH THE UAW IT'S IMPORTANT TO THINK IN TERMS OF INCREASED PRODUCTIVITY NOT JUST IN TERMS OF REDUCTION OF PEOPLE SAID JOHN F SMITH JR GM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER DURING THE NEWS CONFERENCE 9305240001 930524 JURY ORDERS A UNIT OF AMERICAN GENERAL TO PAY 310 MILLION HOUSTON A JURY AWARDED 310 MILLION IN COMPENSATORY AND PUNITIVE DAMAGES AGAINST A REALESTATE SUBSIDIARY OF AMERICAN GENERAL CORP THE CIVIL BREACHOFCONTRACT CASE WAS BROUGHT BY A DEVELOPER WHO CLAIMS THE COMPANY BACKED OUT OF A JOINT VENTURE TO BUILD AIR CARGO FACILITIES AT NEW YORK AND NEW JERSEY AIRPORTS BUT AMERICAN GENERAL INVESTMENT CORP MAINTAINS IT NEVER AGREED TO THOSE JOINT VENTURES WHICH INVOLVED JOHN F KENNEDY INTERNATIONAL AIRPORT AND NEWARK INTERNATIONAL AIRPORT AMERICAN GENERAL INVESTMENT AND ITS SUBSIDIARY AMERICAN GENERAL REALTY INVESTMENT CORP ARE NAMED IN THE SUIT WHILE THEIR PARENT COMPANY AMERICAN GENERAL ISN'T THE JURY VERDICT REACHED AFTER A SIXWEEK CIVIL TRIAL FOLLOWED BY 2 1/2 DAYS OF DELIBERATIONS ISN'T BINDING UNTIL IT HAS BEEN REVIEWED AND ENTERED BY A JUDGE WHO HAS THE POWER TO ALTER IT THIS IS JUST ROUND ONE AND WE ARE OPTIMISTIC THAT ANY ADVERSE JUDGMENT WILL BE OVERTURNED ON APPEAL SAID D GIBSON WALTON ATTORNEY FOR THE DEFENDANT COMPANY IN A RELEASE THE AWARD INCLUDES 473 MILLION IN COMPENSATORY DAMAGES AND 2626 MILLION IN PUNITIVE DAMAGES THE JURY FOUND AMERICAN GENERAL INVESTMENT GUILTY OF BREACH OF CONTRACT BREACH OF FIDUCIARY DUTY AND FRAUD IN COURT DOCUMENTS AMERICAN GENERAL INVESTMENT ARGUED THAT ALTHOUGH IT DID HAVE OTHER JOINT VENTURES WITH THE DEVELOPER AVIA DEVELOPMENT CORP THE COMPANY NEVER AGREED TO THE JFK AND NEWARK PROJECTS NEITHER ORALLY NOR IN WRITING THE COMPANY ARGUED IT DID A PRELIMINARY EVALUATION OF THOSE TWO VENTURES PROPOSED BY AVIA IN 1988 OR 1989 AND DECIDED AGAINST THEM 9305240082 930423 HEALTH NICOTINE PATCH MAKERS REPORT SLOWING SALES BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL NICOTINE PATCHES ARE ONCE AGAIN PROVING THEY AREN'T A PANACEA MANUFACTURERS YESTERDAY REPORTED DECLINING SALES OF THE PATCH IN THE FIRST QUARTER WHICH ANALYSTS SAY IS PROOF OF CONTINUED CONTRACTION IN THE MARKET FOR THE SMOKINGCESSATION PRODUCT MARKET LEADER ALZA CORP OF PALO ALTO CALIF SAID IT SHIPPED FEWER PATCHES TO ITS MARKETING PARTNER MARION MERRELL DOW INC DURING THE FIRST QUARTER THAN IN THE PRECEDING THREE QUARTERS CYGNUS THERAPEUTIC SYSTEMS INC OF REDWOOD CITY CALIF SAID IT SOLD FEWER PATCHES TO ITS MARKETING PARTNER WARNERLAMBERT CO IN THE FIRST QUARTER THAN IN LAST YEAR'S FOURTH QUARTER THERE WILL BE CONTINUED CONTRACTION IN THE MARKET PREDICTS DRUG ANALYST HEMANT K SHAH AN EARLY BEAR ON PROSPECTS FOR THE PATCH HE FORECASTS ANNUALIZED CONSUMER DEMAND WILL LEVEL OFF AT ABOUT 300 MILLION REASONING IT DOESN'T WORK FOR EVERYBODY AND WHETHER IT WORKS OR NOT IT IS STILL ONLY A TWOMONTH TREATMENT SO YOU HAVE TO KEEP REPLENISHING PATIENTS THE MARKET IS DOWN DRAMATICALLY AGREES ANALYST BARBARA RYAN OF ALEX BROWN IN NEW YORK A YEAR AGO EVERYONE WAS GOING GREAT GUNS PREDICTING A BILLIONDOLLAR MARKET THOUGH NOT AS BEARISH AS MR SHAH MS RYAN SAYS TOTAL ANNUAL RETAIL SALES TO CONSUMERS ARE ONLY ABOUT 350 MILLION BEHIND THE MARKET'S MALAISE IS THE REALIZATION BY DOCTORS AND PATIENTS THAT KICKING THE HABIT ISN'T EASY RATHER THEY SAY IT'S A COMPLEX CHEMICAL AND BEHAVIORAL WEANING PROCESS QUESTIONS ABOUT POTENTIAL TOXICITY FROM THE PATCH'S NICOTINE DOSE LAST YEAR MAY HAVE HELPED FURTHER COOL CONSUMER INTEREST AND WHILE QUITE USEFUL FOR SOME SMOKERS PATCHES AREN'T FOR EVERYONE AND OFTEN DON'T WORK ALONE PATCHES ARE CERTAINLY AN AID TO QUITTING THEY HELP WITH THE FIRST HURDLE OF PHYSICAL WITHDRAWAL SAID A SPOKESMAN FOR THE AMERICAN LUNG ASSOCIATION'S SAN FRANCISCO CHAPTER BUT EVEN PHARMACEUTICAL COMPANIES NOW ARE URGING PEOPLE TO ENROLL IN BEHAVIORAL MODIFICATION TO ENHANCE THEIR SUCCESS RATES ALZA MAKER OF THE NICODERM PATCH SAID ITS PROFIT ROSE 69 TO 273 MILLION OR 34 CENTS A SHARE FROM 161 MILLION OR 20 CENTS A SHARE THANKS TO A ONETIME ACCOUNTING CHANGE TOTAL REVENUE ROSE TO 699 MILLION FROM 547 MILLION WITHOUT THE ONETIME GAIN THE MAKER OF DRUGDELIVERY SYSTEMS SAID ITS PROFIT WOULD HAVE RISEN 29 TO 208 MILLION OR 26 CENTS A SHARE A PERFORMANCE THAT DISAPPOINTED WALL STREET AND SENT SHARES TUMBLING 16 TO CLOSE AT 2850 ALZA MAKES THE NICODERM PATCH FOR MARION MERRELL DOW WHOSE SALES OF NICODERM TO PHARMACIES FELL 35 IN THE MOST RECENT QUARTER TO 36 MILLION FROM 54 MILLION A YEAR AGO ANALYSTS SAID SECOND IN THE MARKET IS SWISSBASED CIBAGEIGY WHICH SELLS A PATCH MADE BY ELAN CORP OF IRELAND THE NEWEST ENTRANT IN THE FIELD IS WARNERLAMBERT WHOSE NICOTROL PATCH MADE BY CYGNUS THERAPEUTIC SYSTEMS WAS INTRODUCED LAST AUGUST AND IS GAINING SHARE IN FEBRUARY THE COMPANIES SAY THE PRODUCT CLAIMED 117 OF NEW PRESCRIPTIONS WRITTEN OUR FEELING IS SMOKINGCESSATION PRODUCTS WILL GO UP OVER THE NEXT FOUR TO FIVE YEARS SAID SHIRLEY CLAYTON CHIEF FINANCIAL OFFICER CITING CONTINUED HEALTH CONCERNS A GROWING NUMBER OF SMOKEFREE WORKPLACES AND PROPOSED NEW TAXES ON TOBACCO SHE MAINTAINED THE MARKET GYRATIONS OF 1992 HAVE NOW STABILIZED CYGNUS POSTED A FIRSTQUARTER LOSS OF 26 MILLION OR 19 CENTS A SHARE COMPARED WITH A YEARAGO LOSS OF 68 MILLION OR 58 CENTS A SHARE REVENUE MORE THAN TRIPLED TO 37 MILLION FROM 11 MILLION DESPITE LOWER PATCH SALES TO WARNERLAMBERT WHICH IS STILL WORKING OFF INVENTORY CYGNUS SHARES ROSE 125 TO 8125 IN NATIONAL OVERTHECOUNTER TRADING CIBAGEIGY'S US UNIT COULDN'T BE REACHED FOR COMMENT NICOTROL HAS THE DISTINCTION OF BEING THE ONLY 16HOUR PATCH ON THE MARKET SAY CYGNUS AND WARNERLAMBERT AND THUS IS MORE LIKELY TO DRAW CONSUMERS WHO DON'T WANT TO DISTURB THEIR SLEEP EVEN SO A WARNERLAMBERT SPOKESWOMAN CONCEDES IT'S NO MAGIC BULLET LAST YEAR THERE WAS A RUSH TO TRY IT BUT YOU REALLY HAVE TO BE MOTIVATED IT'S NOT GOING TO WORK BY JUST PUTTING IT ON YOUR ARM WARNERLAMBERT AND CYGNUS CURRENTLY OFFER THE MOST BULLISH OUTLOOK PROJECTING INDUSTRY SALES THIS YEAR OF 350 MILLION FOR MANUFACTURERS AND 460 MILLION AT THE CONSUMER LEVEL ALZA'S SALES OUTLOOK FOR ITS NICODERM PATCH REMAINS CLOUDY TO THE DEGREE NICODERM MANUFACTURING REMAINS AT A REDUCED LEVEL NET SALES ARE UNLIKELY TO SIGNIFICANTLY EXCEED COSTS OF PRODUCTS SHIPPED UNTIL ADDITIONAL PRODUCTS MANUFACTURED BY ALZA ARE INTRODUCED BY CLIENT COMPANIES INTO THE MARKETPLACE ALZA SAID YESTERDAY IN A STATEMENT MS RYAN OF ALEX BROWN CUT HER RATING ON ALZA YESTERDAY ON THE EXPECTATION THAT THE NEXT COUPLE OF QUARTERS WILL BE SIMILARLY DISAPPOINTING NICODERM IS AN IMPORTANT PIECE OF CURRENT EARNINGS SHE SAID BUT ADDED THAT IN THE FUTURE ITS EFFECT WILL BE MINIMAL THUS SHE SAID THE COMPANY MUST INCREASINGLY LOOK TO ITS CURRENT FLAGSHIP PRODUCT PROCARDIA XL A HEART DRUG SOLD BY PFIZER AND ITS 55 OTHER PRODUCTS NOW IN DEVELOPMENT LEDERLE LABORATORIES A DIVISION OF AMERICAN CYANAMID CO MARKETS A NICOTINE PATCH MANUFACTURED BY ELAN CORP OF IRELAND CIBAGEIGY LTD OF SWITZERLAND MARKETS A SEPARATE NICOTINE PATCH AN ARTICLE APRIL 23 INCORRECTLY STATED THAT CIBAGEIGY SELLS A PATCH MADE BY ELAN 9305240063 930409 REVIEW & OUTLOOK EDITORIAL A VISIT FROM MISS MACLAINE A LISTENER COULD AS THEY SAY HAVE HEARD A PIN DROP LAST FRIDAY WHEN MS SHIRLEY MACLAINE ADDRESSED THE AMERICAN SOCIETY OF NEWSPAPER EDITORS ON THE SUBJECT OF RELIGION IN AMERICAN LIFE THE RAPTNESS OF THE AUDIENCE WAS UNDERSTANDABLE IT ISN'T EVERY DAY THAT AMERICAN EDITORS OR ANY OTHER MEMBERS OF THE MEDIA ARE PUBLICLY TOLD BY A HOLLYWOOD STAR THAT THEY'D BETTER START PAYING ATTENTION TO THE VITAL ROLE RELIGION PLAYS IN HUMAN LIFE FUNNY WE NEVER HEAR THIS SORT OF SPEECH AT THE OSCARS MS MACLAINE UNDERSTANDS THAT RELIGIOUS BELIEF ISN'T QUITE RESPECTABLE NOWADAYS WITH PEOPLE WHO WORK IN THE MEDIA AND THAT SERIOUS RELIGIOUS BELIEF IS TO THAT CULTURE PRACTICALLY A PROOF OF INSTABILITY WHAT HAS HAPPENED TO US SHE ASKED THE EDITORS WHY SHE WANTED TO KNOW IS THE PUBLIC DISCUSSION OF FAITH AND SPIRITUALITY NOW LOOKED ON AS SOMETHING OF AN EMBARRASSMENT MS MACLAINE WENT ON TO OBSERVE THAT THE FOUNDING FATHERS UNDERSTOOD MAN'S NATURE TO BE SPIRITUAL THAT THE DAY OF THANKSGIVING WAS PROCLAIMED IN 1789 WITH THE INTENT TO ACKNOWLEDGE THE PROVIDENCE OF ALMIGHTY GOD TO OBEY HIS WILL TO BE GRATEFUL FOR HIS BENEFITS AND HUMBLY TO IMPLORE HIS PROTECTION AND FAVOR THE CONDESCENDING ATTITUDES TODAY TOWARD THOSE WHO HOLD RELIGIOUS BELIEFS AND THE GLIB SOUND BITES ABOUT RELIGIOUS CRAZIES MS MACLAINE SUGGESTED TELL WORLDS ABOUT HOW FAR WE HAVE COME OR DETERIORATED TO BE MORE PRECISE FROM THE NATION'S BEGINNINGS WHEN THOSE WORDS WERE PROCLAIMED AS SHE WENT ON IT BECAME INCREASINGLY EASY TO SEE WHY THIS SPEECH HELD THE NEWS EDITORS' AUDIENCE IN THRALL MS MACLAINE FOR ONE THING TOOK A POKE AT THOSE WHO ASSOCIATE RELIGION WITH THE REACTIONARY CONTRARY TO RECEIVED WISDOM MS MACLAINE SAID SPIRITUAL AND RELIGIOUS VALUES AND THOSE OF A FREE DEMOCRATIC SOCIETY GO HAND IN HAND AND INDEED REINFORCE ONE ANOTHER A PITY MS MACLAINE'S REMARKS AREN'T POSTED IN NEWSROOMS AROUND THE COUNTRY THEY'D BE PARTICULARLY INSTRUCTIVE FOR EXAMPLE FOR THE MEDIA COVERING THE CURRENT NEW YORK CITY SCHOOL BOARD BATTLES IN WHICH MOSTLY LATINO AND BLACK PARENTS HAVE BEEN BATTLING AN EDUCATION ESTABLISHMENT BENT ON EMPHASIZING SEX EDUCATION CONDOM DISTRIBUTION AND ALTERNATIVE SEXUAL LIFESTYLES THESE ARE PARENTS WHO WANT THEIR CHILDREN IN SCHOOL IN ORDER TO LEARN READING WRITING MATHEMATICS AND GEOGRAPHY NOT TO HAVE THEIR SOCIAL VALUES REFASHIONED NOW JOURNALISTS ROUTINELY DESCRIBE THIS GRASSROOTS REBELLION AS THE FORCES OF THE RELIGIOUS RIGHT THAT PROFORMA DERISION WOULD COME AS NO SURPRISE TO THE REV MICHEL FAULKNER OF NEW YORK WHO NOTED IN THESE PAGES LAST OCTOBER THAT PARENTS WHO FOUGHT FOR THE TEACHING OF ABSTINENCE AND AGAINST THE EMPHASIS ON CONDOMS WERE ROUTINELY DISMISSED AS RELIGIOUS THAT'S QUITE A CHARGE TODAY THE REVEREND WRYLY NOTED MS MACLAINE WOULD SURELY AGREE THEY AREN'T THE ONLY ONES WHO'VE NOTICED SOMETHING AMISS IN THE ATTITUDE TOWARD RELIGION COLUMNIST WILLIAM RASPBERRY RECENTLY NOTED THAT CIVIL LIBERTARIANS AND A MAJORITY OF THE SUPREME COURT NOW SEEM TO HAVE REINTERPRETED THE ESTABLISHMENT OF RELIGION CLAUSE TO MEAN THAT THE PROPER GOVERNMENT ATTITUDE TOWARD RELIGION IS ONE OF HOSTILITY MR RASPBERRY WAS MOVED TO THESE THOUGHTS PARTICULARLY BY THE CASE OF GIDEONS INTERNATIONAL WHICH WANTED TO DISTRIBUTE FREE BIBLES TO SCHOOLCHILDREN IN RENSSELAER INDIANA A FEDERAL DISTRICT COURT RULED THE DISTRIBUTION PERMISSIBLE BECAUSE THE SCHOOL DISTRICT ALLOWED LITERATURE DISTRIBUTION BY OTHER OUTSIDE GROUPS THE CHIEF JUDGE IN THAT CASE ALLEN SHARP NOTED THAT TO HAVE RULED OTHERWISE WOULD HAVE BEEN TO SAY THAT IT IS RIGHT TO EXCLUDE ONLY RELIGIOUS GROUPS FROM ACCESS THEN THE SEVENTH US CIRCUIT COURT OF APPEALS IN CHICAGO OVERTURNED THAT EMINENTLY SENSIBLE DECISION BUT HOW SENSIBLE MR RASPBERRY WANTS TO KNOW IS A POLICY THAT ALLOWS FOR THE DISTRIBUTION OF ANYTHING FROM KLAN LITERATURE TO CONDOMS BUT GAGS AT THE DISTRIBUTION OF BIBLES GOOD QUESTION LIKE THAT MS MACLAINE PUT WHEN SHE WONDERED BEFORE THE NEWSPAPER ELITES HOW IT HAD COME TO PASS THAT RELIGIOUS CONVICTION AND SPIRITUAL CONCERNS ARE NOW CONSIDERED NOT QUITE RESPECTABLE AT BEST FOR SERIOUS PEOPLE SUCH AS REPORTERS AND EDITORS THERE WAS A REASON FOR ABSORBED SILENCE THAT GREETED HER REMARKS A REASON BEYOND THE STAR STATUS OF THE SPEAKER THOSE REMARKS TOUCHED ON A TRUTH HARDLY EVER UTTERED THESE DAYS AND EVERYONE IN THE ROOM SEEMED TO UNDERSTAND THAT BY WAY OF INTRODUCTION AND A LIGHT TOUCH THE SPEAKER TOLD THE ASSEMBLAGE THEY WERE THE MOST PRESTIGIOUS GROUP OF EDITORIAL COMMUNICATORS I HAVE EXPERIENCED IN MAYBE TWO THOUSAND YEARS BY THE TIME SHE HAD FINISHED ACTRESS SHIRLEY MACLAINE HAD GIVEN THAT PRESTIGIOUS GROUP SOMETHING TO THINK ABOUT SEE RELATED LETTERS LETTERS TO THE EDITOR AN UNREASONABLE VIEW OF OUR FOUNDERS WSJ MAY 24 1993 9304090113 YY93 MM05 9305240005 930407 AFROCENTRISTS WAGE WAR ON ANCIENT GREEKS BY MARY LEFKOWITZ RECENTLY I HEARD A LECTURE AT WELLESLEY COLLEGE THAT NOT SO LONG AGO WOULD HAVE SEEMED STRANGELY OUT OF PLACE IN AN ACADEMIC SETTING AS IF THERE WERE NO QUESTION ABOUT THE ACCURACY OF HIS INFORMATION THE SPEAKER YOSEF A A BENJOCHANNAN ASSURED HIS YOUNG AUDIENCE THAT GREEK CIVILIZATION DATES FROM ONLY 1000 BC IN FACT GREEKSPEAKING PEOPLES OCCUPIED THE GREEK MAINLAND FOR AT LEAST HALF A MILLENNIUM BEFORE THAT HE WENT ON TO SUGGEST THAT SOCRATES WAS A FIGMENT OF PLATO'S IMAGINATION IN FACT THE GREAT PHILOSOPHER IS MENTIONED BY SEVERAL OTHER CONTEMPORARY WRITERS SUCH AS THE COMIC POET ARISTOPHANES AND THE HISTORIAN XENOPHON AS FOR PLATO HIMSELF MR BENJOCHANNAN CLAIMED THAT THE PHILOSOPHER HAD STUDIED FOR 11 YEARS IN EGYPT IT IS VERY UNLIKELY THAT HE EVEN WENT THERE HE SAID THAT PLATO LEARNED FROM EGYPTIAN SAGES IN MASONIC GRAND LODGES AN EGYPTIAN MYSTERY SYSTEM IN REALITY THERE WAS NO SUCH SYSTEM AND A LITERATURE ABOUT GRECOEGYPTIAN PHILOSOPHY DID NOT COME INTO EXISTENCE UNTIL 500 YEARS AFTER PLATO'S DEATH THEN AS IF TO DRIVE HOME THE MESSAGE OF THE TREACHERY AND INFERIORITY OF THE ANCIENT GREEKS HE ASSERTED THAT ARISTOTLE SACKED THE LIBRARY OF ALEXANDRIA AND STOLE HIS PHILOSOPHY FROM THE EGYPTIANS IN FACT THE LIBRARY WAS NOT BUILT UNTIL AFTER ARISTOTLE'S DEATH AND THERE IS NO EVIDENCE THAT ARISTOTLE EVER WENT TO EGYPT MUCH LESS STOLE HIS PHILOSOPHY FROM THERE WHEN A COLLEAGUE AND I ASKED MR BENJOCHANNAN TO IDENTIFY THE ANCIENT SOURCES ON WHICH HE BASED HIS ASSERTIONS HE DECLINED TO ANSWER WHEN WE POINTED OUT ONE OR TWO ERRORS OF FACT HE ACCUSED US OF ARROGANCE AND INSOLENCE ONE STUDENT APOLOGIZED TO THE SPEAKER FOR OUR RUDENESS AND WALKED OUT AFTER THE LECTURE OTHER STUDENTS SURROUNDED US SAYING YOU THINK YOU KNOW THE TRUTH BUT HE IS TELLING THE TRUTH WHAT YOU LEARNED IS WRONG DESPITE APPEARANCES THIS WAS NO POLITICAL RALLY OR AT LEAST IT WASN'T BILLED AS SUCH IT WAS THE MARTIN LUTHER KING JR MEMORIAL LECTURE IN THE WELLESLEY COLLEGE CHAPEL LOCATED ON A CAMPUS THAT HAS UNTIL NOW PRIDED ITSELF ON REASONED DISCOURSE AND BEHAVIOR THE SPEAKER HAD BEEN INTRODUCED BY OUR COLLEGE PRESIDENT AS AN EMINENT EGYPTOLOGIST AND HISTORIAN ONE COULD JUST LAUGH AND FORGET ABOUT IT IF OCCASIONS LIKE THIS WERE EXCEPTIONAL BUT SIMILAR FACTS ABOUT THE ANCIENT WORLD ARE ROUTINELY TAUGHT TO SOME WELLESLEY STUDENTS AND TO OTHER STUDENTS THROUGHOUT THE COUNTRY AT TEMPLE CITY UNIVERSITY OF NEW YORK AND CORNELL TO NAME ONLY A FEW OTHER SCHOOLS BY PROFESSORS EAGER TO PRESENT AN AFROCENTRIST PERSPECTIVE ON THE ANCIENT WORLD THESE HISTORIANS ARE DETERMINED TO SHOW THAT AFRICA IS THE TRUE MOTHER OF WESTERN CIVILIZATION AND THAT GREEK PHILOSOPHY AND RELIGION WERE NOT INVENTED BY THE GREEKS BUT RATHER STOLEN BY THEM FROM THE ANCIENT EGYPTIANS THEY DEPICT THE EGYPTIANS AND OTHER ANCIENT PEOPLES OF AFRICA AS VICTIMS OF A CONSPIRACY IN THEIR VIEW EUROPEAN HISTORIANS HAVE BANDED TOGETHER TO SUPPRESS THE TRUTH ABOUT THE DERIVATIVE AND FRAUDULENT NATURE OF EUROPEAN CIVILIZATION THIS CONSPIRACY THEORY GIVES THE PROMOTERS OF THE AFROCENTRIST VIEW OF HISTORY LICENSE TO IGNORE MANY ESTABLISHED FACTS OF HISTORY AND TO REPORT OR INVENT ONLY DATA THAT SUPPORT THEIR PARANOID ACCOUNT OF ANCIENT HISTORY IF SOMEONE CAN TEACH THAT THE GREEKS STOLE THEIR PHILOSOPHY FROM EGYPT HE MIGHT AS WELL CLAIM THAT JEWS RATHER THAN CHRISTIAN EUROPEANS ARABS AND AFRICANS WERE PRIMARILY RESPONSIBLE FOR THE 19TH CENTURY SLAVE TRADE AT WELLESLEY THE SAME INSTRUCTOR WHO ASSIGNS BOOKS LIKE THE REV GGM JAMES'S STOLEN LEGACY IN A COURSE ON ANCIENT AFRICA EMPLOYS THE ANONYMOUSLY AUTHORED NOTORIOUSLY ANTISEMITIC TREATISE THE SECRET RELATIONSHIP BETWEEN BLACKS AND JEWS IN A COURSE ON MODERN US HISTORY THOSE WHO BELIEVE IN THIS CONSPIRACY HAVE A SURPRISINGLY EASY TIME IMPOSING THEIR VIEWS IN AMERICAN UNIVERSITIES TODAY THEY ARE PROTECTED OF COURSE BY THE DOCTRINE OF FREEDOM OF SPEECH BUT FOR MANY ACADEMICS HONORING THIS DOCTRINE MEANS NEVER QUESTIONING THE VALIDITY OF WHAT THEIR COLLEAGUES ARE TEACHING PARTLY OUT OF FEAR THAT SOME MODERNDAY JOSEPH MCCARTHY WILL RISE AND BEGIN TO EXAMINE WHAT THEY TEACH IN THEIR OWN CLASSROOMS ANOTHER REASON SUCH APPALLING CONSPIRACY THEORIES CAN THRIVE IN THE ACADEMY IS THAT MOST ACADEMICS HAVE NOW BECOME SO SPECIALIZED THAT THEY ARE RELUCTANT TO QUESTION WHAT IS TAUGHT OUTSIDE THEIR OWN FIELDS ONCE FACULTY MEMBERS HAVE TENURE THEY HAVE ALMOST UNLIMITED LICENSE TO TEACH WHAT THEY PLEASE HOWEVER UNTENABLE THEIR VIEWS AND HARDCORE AFROCENTRISTS KNOW THEY NEED NOT FEAR THE INTERVENTION OF UNIVERSITY ADMINISTRATORS PRESIDENTS AND DEANS PREFER NOT TO TAKE SIDES OR MAKE JUDGMENTS PARTICULARLY IN SENSITIVE MATTERS OF THIS NATURE RATHER THEY SEEM TO REGARD THEMSELVES AS POLITICIANS WHO NEED TO KEEP THE SUPPORT OF ALL THEIR CONSTITUENCIES IT IS BESIDE THE POINT TO ARGUE THAT UNTRUTHS HAVE ALWAYS BEEN TAUGHT AT UNIVERSITIES AND THAT MATERIAL HAS ALWAYS BEEN PRESENTED IN A BIASED WAY CERTAINLY IT IS TRUE THAT AS RECENTLY AS 30 YEARS AGO RELIGION PROFESSORS COULD INSIST WITH THE FULL SUPPORT OF UNIVERSITY TRUSTEES AND ADMINISTRATION THAT ONLY PROTESTANT THEOLOGIANS COULD GIVE A FAIR ACCOUNT OF THE HISTORY OF THE EARLY CHURCH BUT THERE IS A CRUCIAL DIFFERENCE BETWEEN SUCH NARROWMINDED THINKING AND THE PRESENT ATTEMPTS BY CERTAIN AFROCENTRISTS TO DENOUNCE THE ANCIENT GREEKS THE PROTESTANT THEOLOGIANS ALTHOUGH EQUALLY CONVINCED OF THEIR OWN OBJECTIVITY WERE NOT TRYING TO CLAIM THAT THEY NEEDED TO FIGHT AGAINST A GREAT JEWISH OR CATHOLIC CONSPIRACY AND THEY DID NOT SEEK TO DISPUTE THE BASIC FACTS REPORTED IN THE ANCIENT SOURCES EVEN IF THEY WERE WRITTEN BY PAGANS OR JEWS IT IS CLEARLY TIME FOR ACADEMICS TO COME OUT OF THE CLOSETS OF THEIR SPECIALIZATIONS AND COMPLAIN NOT ONLY ABOUT BIASED INTERPRETATION BUT ABOUT DELIBERATE MISREPRESENTATION AND MANIPULATION OF FACTS WHETHER IN THEIR OWN SUBJECT AREAS OR IN SOMEONE ELSE'S UNLESS THEY DO GENERATIONS OF STUDENTS WILL COME TO BELIEVE THAT ARISTOTLE PUT HIS OWN NAME AND TITLES TO NONEXISTENT EGYPTIAN TREATISES THAT HE STOLE FROM A LIBRARY THAT HAD NOT YET BEEN BUILT IN A COUNTRY THAT HE NEVER VISITED SUBJECTS LIKE HISTORY AND PHILOSOPHY WILL BE REPLACED BY INDOCTRINATION AND EACH OF US WILL BELIEVE THE BRAND OF TRUTH THAT BEST SERVES HIS OR HER OWN SELFISH PURPOSES MS LEFKOWITZ A PROFESSOR OF CLASSICS AT WELLESLEY COLLEGE IS THE AUTHOR WOMEN IN GREEK MYTH JOHNS HOPKINS 1986 SEE RELATED LETTERS LETTERS TO THE EDITOR A STRUGGLE AGAINST EUROCENTRISM WSJ MAY 24 1993 9304070101 YY93 MM05 9305210213 930521 INTERNATIONAL WESTPAC BANKING POSTS SIXMONTH LOSS DUE TO WRITEDOWNS SYDNEY AUSTRALIA BIG WRITEDOWNS ON SHAKY REALESTATE LOANS LED WESTPAC BANKING CORP TO REPORT A FISCAL FIRSTHALF LOSS OF A2046 MILLION US1414 MILLION EXCEEDING MANY ANALYSTS' WORST EXPECTATIONS WESTPAC AUSTRALIA'S OLDEST BANK ALSO SAID THAT TO BOOST ITS CAPITAL ADEQUACY RATIOS IT PLANS TO RAISE UP TO A500 MILLION IN THE FORM OF PREFERENCE SHARES THAT ARE CONVERTIBLE INTO WESTPAC COMMON AT THE SAME TIME THE BANK SAID IT WILL ALLOW LEND LEASE CORP WHICH EARLIER THIS MONTH AGREED TO ACQUIRE ABOUT 10 OF WESTPAC FROM AUSTRALIAN FINANCIER KERRY PACKER TO BOOST ITS OVERALL STAKE IN WESTPAC TO 15 WESTPAC ALSO SAID IT WILL ASK TWO LEND LEASE REPRESENTATIVES TO JOIN THE BOARD BOOSTING MEMBERSHIP TO 13 FOR THE FISCAL FIRST HALF ENDED MARCH 31 WESTPAC SAID IT TOOK A CHARGE AGAINST EARNINGS FOR BAD DEBT OF A800 MILLION MOSTLY RELATED TO ITS PROPERTY LOAN PORTFOLIO THAT COMPARES WITH A CHARGE OF A265 BILLION IN THE YEAREARLIER PERIOD ADJUSTING FOR THE BADDEBT CHARGE THE BANK SAID IT EARNED A513 MILLION AFTER TAX BUT BEFORE ADJUSTING FOR ABNORMAL ITEMS COMPARED WITH A LOSS OF A135 BILLION IN THE YEAREARLIER PERIOD THE LATEST RESULTS WERE BOLSTERED BY TREATING AS PROFIT A A1112 MILLION SURPLUS IN THE BANK'S PENSION FUND AFTER ACCOUNTING FOR ABNORMAL ITEMS WESTPAC RECORDED A LOSS OF A2046 MILLION COMPARED WITH A LOSS OF A167 BILLION A YEAR EARLIER WESTPAC'S POOR PERFORMANCE WAS IN STRIKING CONTRAST TO TWO OTHER BIG BANKS THAT REPORTED FIRSTHALF PROFITS NATIONAL AUSTRALIA BANK LTD THURSDAY POSTED A PROFIT OF A5073 MILLION AFTER TAX AND ADJUSTED FOR ABNORMAL ITEMS UP 25 FROM A YEAR EARLIER AND INCREASED ITS DIVIDEND EARLIER THIS MONTH AUSTRALIA & NEW ZEALAND BANKING GROUP LTD SAID THAT WHILE ITS PROFIT FELL 58 IT STILL WAS IN THE BLACK BY A721 MILLION 9305210212 930521 TECHNOLOGY STUDY SAYS DRUGS SOLD IN THIRD WORLD MAY LACK WARNINGS WASHINGTON THE MAJORITY OF DRUGS SOLD IN DEVELOPING COUNTRIES BY USBASED DRUG COMPANIES FAIL TO INCLUDE INSTRUCTIONS FOR PROPER USE OR WARN CONSUMERS OF POSSIBLY DANGEROUS SIDE EFFECTS ACCORDING TO A CONGRESSIONAL STUDY THE REPORT BY THE OFFICE OF TECHNOLOGY ASSESSMENT SAID THAT A RANDOM SAMPLING OF 241 DRUGS SOLD IN BRAZIL KENYA AND THAILAND BETWEEN 1988 AND 1990 SHOWED THAT TWOTHIRDS OF THE PRODUCTS LACKED INFORMATION FOR SAFE USAGE OR WARNING LABELS MANY DEVELOPING COUNTRIES DON'T HAVE STRICT DRUGLABELING LAWS FOR EXAMPLE THE REPORT SAID THAT A DRUG MARKETED FOR PAIN RELIEF DIDN'T WARN CONSUMERS THAT IT COULD STOP WHITE BLOOD CELL PRODUCTION WHICH CAN BE FATAL THE DRUG WAS BANNED IN THE US FOR THAT REASON THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION A WASHINGTONBASED TRADE GROUP ARGUED THAT THE REPORT DOESN'T SUFFICENTLY RECOGNIZE THAT DIFFERENT COUNTRIES HAVE DIFFERENT LABELING REQUIREMENTS THE GROUP ALSO SAID IT DOESN'T TAKE INTO ACCOUNT LABELING CHANGES THAT HAVE OCCURRED SINCE THE SAMPLING WAS TAKEN SEN EDWARD KENNEDY D MASS CALLED THE STUDY A SHOCKING INDICTMENT OF INDUSTRY ABUSES AND A CLEAR CALL FOR US GOVERNMENT ACTION IN A LETTER TO DONNA SHALALA THE SECRETARY OF HEALTH AND HUMAN SERVICES MR KENNEDY AND REP HENRY WAXMAN D CALIF CHAIRMAN OF A HOUSE HEALTH SUBCOMMITTEE ASKED FOR US LEADERSHIP IN CREATING AN INTERNATIONAL CODE OF CONDUCT FOR PHARMACEUTICAL COMPANIES THEY SUGGESTED THAT THE UNITED NATIONS AND THE WORLD HEALTH ORGANIZATION COULD JOINTLY OVERSEE THE GUIDELINES THE REPORT ALSO MADE SEVERAL RECOMMENDATIONS INCLUDING ESTABLISHING AN INTERNATIONAL CODE OF CONDUCT OR PASSING LEGISLATION REQUIRING US DRUG COMPANIES TO COMPLY WITH LABELING APPROVED BY THE FOOD AND DRUG ADMINISTRATION 9305210211 930521 FINANCING BUSINESS TENNECO INC TENNECO INC HOUSTON IS OFFERING 421 MILLION IN ASSETBACKED SECURITIES THROUGH AN OWNER TRUST ESTABLISHED BY CASE RECEIVABLES INC A UNIT OF CASE CORP THE COMPANY'S FARM AND CONSTRUCTION EQUIPMENT UNIT TENNECO SAID THE NOTES ARE SECURED BY FIXEDRATE FARM AND EQUIPMENT RETAIL INSTALLMENT CONTRACTS PROCEEDS WILL BE USED TO REPAY SHORTTERM BORROWINGS WHICH WILL REDUCE THE COMPANY'S DEBT THE ISSUE CONSISTS OF 126 MILLION OF 325 NOTES 278 MILLION OF 440 NOTES AND 17 MILLION OF 515 CERTIFICATES MERRILL LYNCH & CO IS THE LEAD UNDERWRITER 9305210210 930521 CANADIAN CPI ROSE 02 IN APRIL OTTAWA CANADA'S CONSUMER PRICE INDEX ROSE A SEASONALLY ADJUSTED 02 IN APRIL FROM MARCH SAID STATISTICS CANADA A GOVERNMENT AGENCY THE APRIL FIGURE FOLLOWED A 01 DECLINE IN THE INDEX IN MARCH AND A 03 RISE IN FEBRUARY BEFORE ADJUSTMENT FOR SEASONAL FACTORS THE INDEX WAS UNCHANGED FROM MARCH BUT WAS UP 18 FROM A YEAR EARLIER 9305210209 930521 MAXUS BLOCK DECLARED READY DALLAS MAXUS ENERGY CORP SAID ITS MAMORE BLOCK IN BOLIVIA IS READY FOR COMMERCIAL DEVELOPMENT THE ANNOUNCEMENT FOLLOWS SUCCESSFUL COMPLETION OF LONGTERM TESTING ON THE SURUBI NO 1 AND NO 2 WELLS CURRENTLY MAXUS IS DRILLING A THIRD WELL FROM THE A PAD AND IS ALSO BUILDING A SECOND WELL PAD MAXUS AN OIL AND GAS COMPANY HOLDS 100 INTEREST IN THE BLOCK BASED 96 MILES NORTHWEST OF SANTA CRUZ 9305210208 930521 KETCHEN TO HEAD EXCHANGE TORONTO FREDERICK KETCHEN WAS ELECTED CHAIRMAN OF THE BOARD OF GOVERNORS OF THE TORONTO STOCK EXCHANGE SUCCEEDING MICHAEL EDWARDS WHO COMPLETED HIS TWOYEAR TERM MR KETCHEN WAS VICE CHAIRMAN DURING THAT PERIOD HE IS SENIOR VICE PRESIDENT AND A DIRECTOR OF SCOTIA MCLEOD INC AND MR EDWARDS IS PRESIDENT AND CHIEF OPERATING OFFICER OF RICHARDSON GREENSHIELDS OF CANADA LTD JOHN CLARK CHAIRMAN OF CONNOR CLARK & CO WAS ELECTED VICE CHAIRMAN OF THE EXCHANGE 9305210207 930521 FROZEN FOOD EXPRESS TO GO OTC DALLAS FROZEN FOOD EXPRESS INDUSTRIES INC SAID ITS COMMON STOCK HAS BEEN ACCEPTED FOR TRADING ON THE OVERTHECOUNTER MARKET THE COMPANY'S STOCK IS CURRENTLY LISTED ON THE AMERICAN STOCK EXCHANGE THE REFRIGERATED TRUCKING COMPANY SAID IT ANTICIPATES ITS STOCK WILL BEGIN TRADING OVERTHECOUNTER WITH THE TRADING SYMBOL FFEX ON TUESDAY 9305210206 930521 ASHLAND'S CATLETTSBURG REFINERY ASHLAND KY ASHLAND OIL INC'S PETROLEUM UNIT SAID IT EXPECTS TO CURTAIL CRUDE OIL PROCESSING AT ITS CATLETTSBURG KY REFINERY TO 200000 BARRELS A DAY WHILE ONE OF THE REFINERY'S CRUDE UNITS WHICH EXPLODED MAY 17 UNDERGOES REPAIRS THE COMPANY EXPECTS THE REPAIRS TO BE COMPLETED WITHIN FOUR WEEKS THE REFINERY HAS A CAPACITY OF 213400 BARRELS A DAY THE ENERGY COMPANY SAID IT DOESN'T EXPECT THE REPAIRS WILL CUT THE REFINERY'S GASOLINE PRODUCTION THE COMPANY ALSO SAID THAT IT RESTARTED A FLUID CATALYTIC CRACKING UNIT AT THE REFINERY THE CRACKING UNIT HAD BEEN SHUT DOWN FOR REPAIRS SINCE MAY 6 9305210205 930521 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 295969 METRIC TONS IN THE WEEK ENDED SATURDAY A 46 INCREASE FROM 283075 THE PREVIOUS WEEK AND AN 81 RISE FROM 273908 A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 5340748 TONS A 41 INCREASE FROM 5130770 A YEAR EARLIER 9305210204 930521 TECHNOLOGY MATRIX TRIAL FOR WARTS DRUG MENLO PARK CALIF MATRIX PHARMACEUTICAL INC SAID IT COMPLETED A SECOND CLINICAL TRIAL OF ITS TREATMENT FOR GENITAL WARTS WARTS CLEARED ON 65 OF 187 PATIENTS WHO RECEIVED THE TREATMENT AN INJECTION CALLED MPI 5003 MATRIX SAID OF THE PATIENTS WHOSE WARTS HAD CLEARED 61 REMAINED FREE OF THEM THREE MONTHS LATER THE PHARMACEUTICAL COMPANY SAID A THIRD TRIAL MUST BE CONDUCTED BEFORE THE DRUG CAN BE APPROVED BY REGULATORS FOR MARKET 9305210203 930521 POLAND HIRES KIDDER PEABODY NEW YORK KIDDER PEABODY & CO SAID IT WAS RETAINED BY THE GOVERNMENT OF POLAND AS A FINANCIAL ADVISER FOR NEGOTIATION OF THE RESTRUCTURING OF ITS COMMERCIALBANK DEBT POLAND IS NEGOTIATING WITH BANK CREDITORS FOR RESTRUCTURING ABOUT 12 BILLION OF DEBT KIDDER PEABODY IS A SUBSIDIARY OF GENERAL ELECTRIC CO 9305210202 930521 FOREST OIL PURCHASE DENVER FOREST OIL CORP SAID IT COMPLETED THE PURCHASE OF SIX OFFSHORE BLOCKS IN THE GULF OF MEXICO FROM ATLANTIC RICHFIELD CO FOR 415 MILLION AND CERTAIN ADDITIONAL CONSIDERATIONS ENRON FINANCE CORP PROVIDED ABOUT 27 MILLION OF THE ACQUISITION PRICE THROUGH THE PURCHASE OF A VOLUMETRIC PRODUCTION PAYMENT THE COMPANY ACQUIRED A 100 WORKING INTEREST IN FOUR OF THE BLOCKS AND ABOUT 40 AND 33 INTERESTS IN THE REMAINING TWO BLOCKS FOREST OIL IS AN OIL AND NATURAL GAS COMPANY WHOSE PRINCIPAL RESERVES AND PRODUCING PROPERTIES ARE IN THE GULF OF MEXICO TEXAS OKLAHOMA AND WYOMING 9305210201 930521 PORTUGAL TO LOWER STAKE IN BANK LISBON PORTUGAL THE PORTUGUESE GOVERNMENT APPROVED PLANS TO SHED ABOUT 50 OF ITS HOLDING IN PORTUGAL'S LEADING COMMERCIAL BANK BANCO PORTUGUES DO ATLANTICO THE GOVERNMENT WILL SELL OFF A FURTHER 25 MILLION SHARES REDUCING THE STATE'S HOLDING IN THE BANK TO 24 FROM 49 OF THE SHARES ON OFFER 75 MILLION CAN BE BOUGHT BY FOREIGN INVESTORS AT 2050 ESCUDOS EACH 1328 THE PORTUGUESE NEWS AGENCY LUSA REPORTED THE OPORTOBASED BANK HEADS A POWERFUL ECONOMIC GROUP IT IS THE SOLE OR MAJORITY SHAREHOLDER IN 22 COMPANIES AND HAS INTERESTS IN ANOTHER 44 FIRMS IN TOURISM REAL ESTATE CONSTRUCTION AGRICULTURE AND OTHER SPHERES 9305210200 930521 LEISURE & ARTS THEATER TWO WAYS TO PLAY FARCE BY JOEL HENNING CHICAGO UNTIL RECENTLY IT APPEARED THAT THE CURRENT THEATRICAL SEASON WOULD WIND DOWN WITHOUT AN UNQUALIFIED SUCCESS STAGED BY ANY OF CHICAGO'S MAJOR THEATER COMPANIES ON PAPER KEITH REDDIN'S BLACK SNOW LOOKED LIKE ANOTHER SURE LOSER THE PLAY IS ADAPTED FROM RUSSIAN NOVELIST MIKHAIL BULGAKOV'S ROMAN A CLEF ABOUT HIS INSANE ENCOUNTERS WITH SOVIET TOTALITARIANISM AND BUREAUCRACY SUBJECTS EXTREMELY REMOTE FROM OUR CURRENT CENTER OF ATTENTION BUT MR REDDIN HAS CRAFTED AN INCREDIBLY FUNNY AND EFFECTIVE FARCE FROM BULGAKOV'S RAILINGS AGAINST THE AUTOCRATS AND INSTITUTIONS THAT DENIED HIM A SUCCESSFUL LITERARY CAREER AND DIRECTOR MICHAEL MAGGIO HAS STAGED BLACK SNOW WITH RELENTLESS INTELLIGENCE AND WIT NO FARCE CAN SUCCEED WITHOUT ACTORS WHO CAN PORTRAY CHARACTERS AT THE INTERSECTION OF HUMAN PAIN AND COMEDY IT TAKES INTELLIGENCE AND FLAWLESS TIMING BOTH OF WHICH ARE ABUNDANTLY DISPLAYED BY BRUCE NORRIS AS SERGEI THE CLERK I HATE MY JOB HATE MY APARTMENT HATE MY LIFE SO ONE DAY I DECIDED TO WRITE A NOVEL THE PLAY OPENS WITH SERGEI DESPERATE OVER HIS FAILURE TO GET HIS NOVEL PUBLISHED AND ABOUT TO HANG HIMSELF FROM THAT MOMENT HE HARDLY EVER LEAVES THE STAGE AS HE IS FIRST TAKEN UP AND THEN DROPPED BY THE MOSCOW LITERARY SET AND THEN AFTER HIS NOVEL IS FATALLY ASSAULTED BY THE CENSORS HE IS ALMOST COOPTED BY A SURREALISTIC VERSION OF THE MOSCOW ART THEATER AND ITS AUTOCRATIC DIRECTOR KONSTANTIN STANISLAVSKY IF ONE CAN CAVIL AT ALL WITH THIS DELIGHTFUL CIRCUS OF A PLAY IT IS WITH JORDAN CHARNEY'S PORTRAYAL OF IVAN VASILIEVICH THE STANISLAVSKY FIGURE HOW DOES ONE PLAY A PONDEROUS PEDANT WITHOUT SLOWING THE LIGHTNING PACE AND THREATENING THE BUOYANT SPIRIT ESTABLISHED BY MR MAGGIO FOR THIS PRODUCTION NEITHER MR CHARNEY NOR MR MAGGIO SEEMS TO HAVE THE ANSWER THE SECOND ACT WHICH IS ALMOST OVERWHELMED BY THE GRAVITY OF MR CHARNEY'S PORTRAYAL IS REDEEMED WITH SEVERAL INCREDIBLY FUNNY SCENES INVOLVING MARC VANN AS THE CONTROL FREAK IN CHARGE OF THE BOX OFFICE JEFFREY HUTCHINSON AS A FRIGHTENED ADMINISTRATOR AND ESPECIALLY BARBARA E ROBERTSON AS THE SUPERCOMPETENT TYPIST EDITOR AND RECEPTIONIST THROUGHOUT SERGEI'S ADVENTURES MR REDDIN HAS HIM SHADOWED BY HIS FIDDLEPLAYING MUSE PLAYED BY THE LANKY ATTRACTIVE AND ABUNDANTLY TALENTED MIRIAM STURM HER JOB IS TO MIRROR SERGEI'S MOODS WITH HER MUSIC BUT SHE ALSO COMMENTS SILENTLY ON THE ABSURD SPECTACLE WITH AN ENORMOUS REPERTOIRE OF POSTURES FROWNS AND GRIMACES MS STURM ALSO TEAMED WITH ROB MILBURN AND MICHAEL BODEEN TO COMPOSE THE MUSIC WHICH ADDS CONSIDERABLY TO THIS TERRIFIC PRODUCTION AS DO THE BIZARRE SOUND EFFECTS DESIGNED BY MR MILBURN LIKE SO MANY FARCES THIS ONE DEPENDS ON AN INFINITE NUMBER OF EXITS AND ENTRANCES LINDA BUCHANAN'S INSPIRED SET INCLUDES SEVERAL LEVELS OF SPACE AND A MOBILE ARMY OF DOORS THAT ROLL INTO PLACE JUST IN TIME FOR THE NEXT APPEARANCE OR DISAPPEARANCE OF ONE OR MORE MEMBERS OF THE TROUPE HER DOORS ARE THE PERFECT REPRESENTATION OF IMPOSSIBLE BUREAUCRACY AND RIDICULOUS HIERARCHY BUT MS BUCHANAN'S MOST HILARIOUS CONTRIBUTIONS TO THE EVENING ARE ROLLED OUT IN THE SECOND ACT MASSIVE TALKING MASKS OF SOPHOCLES SHAKESPEARE AND MOLIERE MARTIN PAKLEDINAZ'S COSTUMES ARE A CARTOONIST'S FANTASY OF MOSCOWLITERATI CHIC IN THE 1920S AND '30S AND THE DAFFY PROCEEDINGS ARE LIT WITH ENERGETIC IMAGINATION BY JAMES F INGALLS BLACK SNOW CONTINUES AT THE GOODMAN THEATRE THROUGH JUNE 5 ANOTHER FARCE WITH STRONG TIES TO THE LITERARY WORLD IS DON DELILLO'S THE DAY ROOM ON UNTIL JUNE 13 AT REMAINS THEATRE MR DELILLO WON THE NATIONAL BOOK AWARD FOR LIBRA A NOVEL BASED ON THE KENNEDY ASSASSINATION THAT MAKES THE OLIVER STONE FILM JFK LOOK LIKE A SILLY ADOLESCENT DAYDREAM BUT A PLAY IS MORE AND LESS THAN THE PLAYWRIGHT'S WORDS MR DELILLO CONCEIVED AN ENGAGING PLOT INVOLVING ELUSIVE IDENTITIES AND THE END OF ORDER TWO HOSPITAL PATIENTS ARE MINISTERED TO BY A SERIES OF DOCTORS NURSES AND ORDERLIES WHO TURN OUT TO BE NUT CASES ON THE LOOSE FROM THE PSYCHIATRIC WARD OR MAYBE THEY'RE NOT NUT CASES BUT AN ACTING TROUPE THAT SNEAKS IN AND OUT OF CITIES THROUGHOUT THE WORLD A NICE CONCEIT FOR A NOVELIST ESPECIALLY ONE WHO ACHIEVED MUCH SUCCESS BY CREATING AN INTRIGUING FICTIONAL TAPESTRY OUT OF THE FACTUAL THREADS AND TATTERS OF THE KENNEDY TRAGEDY BUT THIS CONCEIT REQUIRES ENSEMBLE PERFORMANCES THAT CAN KEEP AN AUDIENCE INVOLVED AND BELIEVING THAT SOONER OR LATER IT WILL ONCE AGAIN BE BACK TO REALITY INSTEAD DIRECTOR NEEL KELLER GETS NO MORE THAN MEDIOCRE SLAPSTICK FROM MOST OF HIS ACTORS THE VETERAN PLAYER NATHAN DAVIS SO CONVINCING IN STEPPENWOLF THEATRE COMPANY'S TONY AWARDWINNING GRAPES OF WRATH HERE DOES LITTLE MORE THAN PRANCE AND PRATTLE AS THE HOSPITAL PATIENT BUDGE UNLIKE MR NORRIS IN BLACK SNOW MR DAVIS NEVER SEEMS ABLE TO TAKE HIS ROLE SERIOUSLY AND BE FUNNY AT THE SAME TIME AT THE LAST MINUTE AMY MORTON TOOK OVER THE ROLE OF LYNETTE GROUPIE TO THE ELUSIVE ACTING TROUPE WHEN SUSAN NUSSBAUM BROKE HER LEG IN REHEARSAL BY OPENING NIGHT MS MORTON HAD MASTERED HER LINES BUT HAD NOT CONNECTED WITH HER CHARACTER ONE WOULD BE INCLINED TO ATTRIBUTE THE DISTANCE BETWEEN ACTRESS AND CHARACTER TO INADEQUATE REHEARSAL BUT FOR THE EQUALLY DISMAYING SUPERFICIALITY OF SO MANY OTHER PERFORMANCES BY THOSE WITH PLENTY OF TIME TO PREPARE NOR DOES MR DELILLO GET ANY HELP FROM THE PEDESTRIAN SETTINGS AND HARSH LIGHTING OF MICHAEL PHILIPPI IT'S ALMOST AS IF THE ENTIRE COMPANY OF THE DAY ROOM BELIEVES THAT FARCE IS SYNONYMOUS WITH SHTICK WHILE EVERYONE INVOLVED IN MOUNTING BLACK SNOW IS COMMITTED TO A FAR DEEPER AND ULTIMATELY DARKER EXPLORATION OF THIS KIND OF COMEDY TAKEN TOGETHER THESE TWO PRODUCTIONS TEACH US THAT GREAT THEATER INCLUDING VERY FUNNY GREAT THEATER MUST RESPECT BOTH SOURCE MATERIAL AND AUDIENCE THE GOODMAN THEATRE COMPANY SERVES AS AN HONEST BROKER IN THIS RESPECT WHILE THE REMAINS THEATRE TROUPE DOESN'T DO JUSTICE EITHER TO MR DELILLO OR TO US 9305210199 930521 ECONOMY CLINTON FACES A NEW THREAT ON ENERGY TAX FOUR MODERATE SENATORS LED BY BOREN UNVEIL BIPARTISAN ALTERNATIVE BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION AND DEMOCRATIC LEADERS IN CONGRESS SCRAMBLED TO CONTAIN A NEW THREAT TO THE PRESIDENT'S ECONOMIC PROGRAM AFTER FOUR MODERATE SENATORS PROPOSED A BIPARTISAN ALTERNATIVE THAT JUNKS THE PRESIDENT'S PROPOSED ENERGY TAX THE ALTERNATIVE WAS SPEARHEADED BY OKLAHOMA DEMOCRAT DAVID BOREN WHO ALONE COULD DOOM THE CLINTON PACKAGE BY VIRTUE OF HIS SEAT ON THE FINANCE COMMITTEE WITH A NARROW 119 EDGE ON THAT PANEL DEMOCRATS CAN'T AFFORD TO LOSE A SINGLE VOTE IF REPUBLICANS AS EXPECTED OPPOSE THE TAX BILL AS A BLOC SEN BOREN SAID YESTERDAY HE WILL OPPOSE ANY PLAN THAT INCLUDES MR CLINTON'S ENERGY TAX IN COMMITTEE ON THE FLOOR ANYWHERE BUT EVEN BEFORE THE DEFICITREDUCTION BILL GETS TO THE FINANCE PANEL THE BOREN ALTERNATIVE JEOPARDIZES THE CLINTON PACKAGE IN THE HOUSE WHERE A VOTE IS SCHEDULED NEXT WEEK FOR A NUMBER OF HOUSE DEMOCRATS ESPECIALLY THOSE FROM ENERGYPRODUCING STATES THE BOREN ALTERNATIVE FEEDS JITTERS EXPRESSED PERSONALLY TO MR CLINTON DURING A CAPITOL VISIT WEDNESDAY THEY ARE BEING ASKED TO VOTE FOR AN ENERGY TAX THAT WON'T SURVIVE IN THE SENATE IT MAKES IT DAMN NEAR IMPOSSIBLE TO VOTE FOR THE BILL SAID REP CHARLES WILSON D TEXAS HE SAID ONLY HALFJOKING THAT HE'D VOTE FOR THE BILL IF DEMOCRATIC LEADERS CAN CONVINCE ME THAT THE FATE OF THE DEMOCRATIC ADMINISTRATION IS AT STAKE AND BEYOND THAT THAT THE FATE OF THE ADMINISTRATION IS MORE IMPORTANT THAN MY PERSONAL FATE WHICH IS A HARD SELL TYPICAL OF THE ADMINISTRATION'S EFFORT TO QUELL THE REBELLION AGAINST THE ENERGY TAX WHICH WOULD RAISE 714 BILLION OVER FIVE YEARS WAS THE PRESIDENT'S OWN REACTION TO THE BOREN PROPOSAL WHITE HOUSE COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS SAID MR CLINTON OPPOSES IT FOR A VERY SIMPLE REASON SEN BOREN'S ALTERNATIVE IS GOING TO LOWER TAXES ON THE WEALTHY AND PAY FOR IT BY CUTTING SOCIAL SECURITY BENEFITS FOR MILLIONS OF SENIORS IN THE HOUSE BECAUSE MOST IF NOT ALL REPUBLICANS ARE EXPECTED TO VOTE AGAINST THE ADMINISTRATION DEFICITREDUCTION BILL DEMOCRATS CAN AFFORD ONLY 40 DEFECTIONS AMONG THEIR 257 MEMBERS THE STANCE OF REP WILSON ILLUSTRATES THE DIFFICULTIES THAT THE WHITE HOUSE AND DEMOCRATIC LEADERS FACE IN COUNTERING THREATS TO THE BILL INCLUDING DEMANDS FROM HOUSE MODERATES TO CAP SPENDING ON FEDERAL BENEFITS PROGRAMS THE TEXAN IS A VETERAN LAWMAKER AND TYPICALLY A PARTY LOYALIST BUT LIKE MANY HOUSE MEMBERS HE'S NERVOUS ABOUT WINNING REELECTION NEXT YEAR HAVING SURVIVED A TOUGH CAMPAIGN LAST YEAR AMID THE NATION'S ANTIINCUMBENT MOOD PEOPLE ARE JUST AFRAID TO VOTE FOR THIS GENERALLY SAID REP CHARLES SCHUMER D NY ONE OF THE VOTE COUNTERS BUT HE ADDED A CONFIDENT SPIN SAYING THE BOREN PROPOSAL HAS SORT OF BROUGHT DEMOCRATS TOGETHER IN THE HOUSE LIKEWISE WHITE HOUSE OFFICIALS AND CONGRESSIONAL LEADERS JOINED TO EXPRESS CONTINUED OPTIMISM BUT THEY ACKNOWLEDGED THEY DON'T HAVE ENOUGH VOTES YET AND THEIR VERY ACTIVITY REFLECTED THEIR NERVOUSNESS THE PRESIDENT CLEARED MUCH OF HIS SCHEDULE YESTERDAY MORNING TO CALL LAWMAKERS VICE PRESIDENT AL GORE TREASURY SECRETARY LLOYD BENTSEN AND WHITE HOUSE BUDGET DIRECTOR LEON PANETTA ALL PREVIOUSLY MEMBERS OF CONGRESS CALLED FORMER COLLEAGUES AT A WHITE HOUSE CEREMONY TO SIGN AN UNRELATED BILL ADMINISTRATION AIDES TRIED TO REASSURE HOUSE MEMBERS THAT MR CLINTON WON'T BARGAIN AWAY HIS ENERGY TAX IN THE SENATE AT THE CAPITOL SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE AND FINANCE CHAIRMAN DANIEL MOYNIHAN D NY HELD A NEWS CONFERENCE TO DISPARAGE THE BOREN PACKAGE SEN MOYNIHAN SAID HIS COMMITTEE WILL ACT WHEN WE HAVE 11 VOTES THOUGH THE DEADLINE IS JUNE 18 SENATE DEMOCRATS EXPECT THAT SEN BOREN WHO ONCE SPOKE WARMLY OF MR CLINTON'S ECONOMIC PROGRAM WILL AT LEAST VOTE PRESENT SO THE BILL CAN GO TO THE FULL SENATE EVEN IF HE CAN'T SUPPORT A PACKAGE WITH THE ENERGY TAX SEN BOREN'S COAUTHORS ARE SEN JOHN DANFORTH OF MISSOURI A MODERATE REPUBLICAN ON THE FINANCE COMMITTEE AND TWO SENATORS NOT ON THE PANEL REPUBLICAN WILLIAM COHEN OF MAINE AND DEMOCRAT BENNETT JOHNSTON OF LOUISIANA THE GROUP DECIDED LATE WEDNESDAY NIGHT TO PUSH THEIR PLAN AFTER TALKS WITH A BROADER GROUP COLLAPSED IN PART UNDER PRESSURE FROM THEIR RESPECTIVE PARTY LEADERS THEIR PACKAGE WOULD CUT THE DEFICIT AN ESTIMATED 542 BILLION OVER FIVE YEARS AS OPPOSED TO 496 BILLION UNDER MR CLINTON'S PROGRAM ABOUT 344 BILLION IN THE DEFICITREDUCTION BILL AND AN ADDITIONAL 152 BILLION IN SEPARATE SPENDING CUTS OVER FIVE YEARS IT AIMS TO REPLACE MANY OF MR CLINTON'S PROPOSED TAX INCREASES WITH CUTS IN SOCIAL SECURITY MEDICARE AND OTHER FEDERAL BENEFITS PROGRAMS IN ORDER TO PROVIDE 2 OF CUTS FOR EVERY 1 IN NEW TAXESREVERSING THE MIX IN MR CLINTON'S PLAN IN ADDITION TO SCRAPPING THE ENERGY TAX THE ALTERNATIVE WOULD CONTINUE TO CAP MEDICARE PAYROLL TAXES FOR UPPERINCOME TAXPAYERS MR CLINTON PROPOSED TO REPEAL THE CAP IN ORDER TO RAISE 29 BILLION IT WOULD DELAY BY SIX MONTHS TO JUNE 30 THE EFFECTIVE DATE FOR MR CLINTON'S PROPOSED INCOMETAX INCREASES ON THE RICHEST AMERICANS AND PROVIDE THAT INVESTORS WOULDN'T HAVE TO PAY CAPITALGAINS TAXES ON THE VALUE OF THEIR ASSETS THAT IS BECAUSE OF INFLATION IN LIEU OF THE TAXES THE PLAN WOULD CAP SPENDING ON MEDICARE AND MEDICAID TO ACHIEVE SOME 114 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS IT ALSO WOULD LIMIT COSTOFLIVING INCREASES FOR SOCIAL SECURITY PAYMENTS ABOVE THE FIRST 600 A MONTH BUT IT WOULDN'T TOUCH OTHER ENTITLEMENT SPENDING SUCH AS FARM SUBSIDIES AND VETERANS PAYMENTS SEN BOREN LISTED VARIOUS WAYS TO REDUCE HEALTHCARE SPENDING BUT MR BENTSEN COMPLAINED THAT THE ADMINISTRATION WANTED TO RESERVE SOME OF THE IDEAS FOR POSSIBLE INCLUSION IN ITS HEALTHCARE REFORM PROPOSAL THE HARDEST THING TO DO POLITICALLY IS TO DEAL WITH TAXES OR THE ENTITLEMENTS SAID SEN DANFORTH WHO'S NOT SEEKING REELECTION BUT AS POLITICIANS DUCK THE HARD CHOICES HE SAID OUR ECONOMY GROWS WEAKER AND WEAKER ONE OF THE NEGOTIATORS WHO IN THE END BOWED OUT SEN JOHN BREAUX D LA ISSUED A STATEMENT SAYING HE HAD AGREED AFTER A VISIT WITH PRESIDENT CLINTON WEDNESDAY NIGHT TO WORK TO PASS THE ADMINISTRATION PLAN WITH ALTERATIONS ANOTHER SEN KENT CONRAD D ND ALSO WILL SEEK TO MODIFY THE PRESIDENT'S PROGRAM WITH A BROAD EXEMPTION FROM THE ENERGY TAX FOR FARMERS JEFFREY H BIRNBAUM AND DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9305210198 930521 US BUSINESS OFFICIALS EXPECT 21 MILLION JOBS TO BE CREATED IN '93 NEW YORK BUSINESS EXECUTIVES AROUND THE NATION EXPECT 21 MILLION NEW JOBS TO BE CREATED THIS YEAR NEARLY 80 OF THEM IN THE NATION'S SMALLEST BUSINESSES ACCORDING TO DUN & BRADSTREET CORP BUT MANY EXECUTIVES SAID THEIR COMPANIES PARTICULARLY LARGE COMPANIES CONTINUE TO HAVE PROBLEMS FINDING QUALIFIED WORKERS AND ABOUT HALF THE COMPANIES EXPECT THEIR AVERAGE EMPLOYEE PAY AND BENEFITS COST WILL INCREASE THIS YEAR THE PROVIDER OF BUSINESS INFORMATION SERVICES IN ITS ANNUAL DUN'S SURVEY OF 5000 EXECUTIVES ABOUT THEIR EMPLOYMENT EXPECTATIONS SHOWS A PERSISTING OPTIMISM DESPITE LAST YEAR'S JOB CREATION NUMBERS THAT WERE BELOW EXPECTATIONS JOSEPH W DUNCAN VICE PRESIDENT AND CORPORATE ECONOMIST FOR D&B SAID THAT A PROLONGED PERIOD OF SLOW ECONOMIC GROWTH WAS NOT FORESEEN BY MOST FIRMS LAST YEAR THIS YEAR'S RESULTS SUGGEST THAT FIRMS STILL BELIEVE THAT THE POTENTIAL FOR JOB CREATION EXISTS MR DUNCAN NOTED THAT THE SURVEY RESULTS INDICATE THAT FIRMS WITH FEWER THAN 100 EMPLOYEES WILL ACCOUNT FOR 792 OF THE NEW JOBS FURTHER FIRMS WITH FEWER THAN 20 EMPLOYEES ARE EXPECTED TO ACCOUNT FOR 57 OF THE NEW JOBS MR DUNCAN ADDED THAT MOST OF THE PROJECTED NEW JOBS ARE LIKELY TO BE FULL TIME RATHER THAN PART TIME OR TEMPORARY IN CONTRAST D&B SAID 36 OF BUSINESSES WITH MORE THAN 25000 EMPLOYEES PLAN TO DECREASE JOBS IN 1993 WHILE 52 EXPECT NO CHANGE FROM 1992 LEVELS AND 12 PLAN TO ADD JOBS OVERALL THIS WILL ACCOUNT FOR A DECREASE OF 13 IN JOBS NATIONALLY AT LARGE COMPANIES MR DUNCAN SAID THE SURVEY'S RESULTS WHEN MEASURED INDUSTRY BY INDUSTRY WERE MIXED SERVICE AND RETAIL TRADE BUSINESSES WILL ACCOUNT FOR THE GREATEST SHARE OF THE TOTAL EMPLOYMENT GAIN 26 OF SERVICE COMPANIES SURVEYED EXPECT JOBS GROWTH ACCOUNTING FOR 30 OF THE TOTAL NATIONAL EMPLOYMENT GAIN AND 22 OF RETAILERS SURVEYED EXPECT TO ADD JOBS ACCOUNTING FOR 24 OF THE TOTAL JOBS GROWTH 9305210197 930521 WHO'S NEWS UNITED TECHNOLOGIES CORP UNITED TECHNOLOGIES CORP HARTFORD CONN FRANKLYN A CAINE 43 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT PLANNING AND CORPORATE DEVELOPMENT A NEW RESPONSIBILITY AT THIS AEROSPACE BUILDING SYSTEMS AND AUTOMOTIVE PRODUCT COMPANY HE HAD BEEN SENIOR VICE PRESIDENTCONTROLLER GEORGE E MINNICH 43 AN AUDIT PARTNER AT PRICE WATERHOUSE WAS NAMED VICE PRESIDENTCONTROLLER 9305210196 930521 CHRYSLER LIKELY TO DEFER BOOST IN ITS DIVIDEND CAR MAKER EXPECTS TO RAISE PAYOUT AFTER UPGRADE OF ITS CREDIT RATING BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CHRYSLER CORP ISN'T LIKELY TO BOOST ITS DIVIDEND UNTIL IT GETS AN INVESTMENTGRADE CREDIT RATING BUT THAT COULD OCCUR IN THE FIRST QUARTER OF 1994 OR SOONER ROBERT J EATON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID PRESIDING OVER HIS FIRST ANNUAL MEETING AS CHRYSLER'S CHAIRMAN MR EATON SAID IT'S TO EVERYONE'S ADVANTAGE TO GO TO INVESTMENT GRADE FIRST HE TERMED A HIGHER CREDIT RATING SOMEWHAT OF A PREREQUISITE TO A DIVIDEND INCREASE CHRYSLER IN HIGHLAND PARK MICH CUT ITS QUARTERLY CASH DIVIDEND IN HALF TO 15 CENTS A SHARE TWO YEARS AGO IN THE FACE OF HUGE LOSSES IT WAS INCURRING DURING THE RECESSION THE COMPANY'S CREDIT RATING HAS RECOVERED SOMEWHAT FROM THE LOWS IT HIT THEN BUT IT STILL REMAINS AT LEAST ONE NOTCH BELOW INVESTMENT GRADE AT THE MAJOR RATINGS CONCERNS MR EATON ALSO SAID THAT CHRYSLER WON'T FOLLOW GENERAL MOTORS CORP AND FORD MOTOR CO IN LAUNCHING ITS OWN CREDIT CARD AND THAT CHRYSLER CAN MEET ITS FUTURE CAPACITY NEEDS WITHOUT BUILDING NEW FACTORIES HE SAID CHRYSLER'S DISCOUNTS TO CAR BUYERS HAVE BEEN REDUCED OVER THE PAST YEAR AND ADDED THAT HE EXPECTS THEM TO SHRINK FURTHER IN COMING MONTHS BOTH MOODY'S INVESTOR SERVICE INC AND STANDARD & POOR'S CORP UPGRADED CHRYSLER'S DEBT RATING IN JANUARY WHEN THE AUTO MAKER KICKED OFF A STOCK SALE THAT RAISED SLIGHTLY MORE THAN 2 BILLION BUT BOTH SERVICES RATE CHRYSLER AT JUNK LEVELS WE HAVE A POSITIVE OUTLOOK ON THE RATINGS OF CHRYSLER AND WE'VE INDICATED THE RATINGS COULD BE RAISED WITHIN THE NEXT ONE TO TWO YEARS SAID SCOTT SPRINZEN AN ANALYST WITH S&P THANKS LARGELY TO THE SUCCESSFUL STOCK SALE EARLIER THIS YEAR CHRYSLER PAID 16 BILLION INTO ITS PENSION FUND REDUCING ITS UNFUNDED PENSION LIABILITY TO ABOUT 23 BILLION IF CONDITIONS PERMIT CHRYSLER WILL REDUCE THE UNFUNDED PENSION LIABILITY BY AN ADDITIONAL 900 MILLION BY YEAR END MR EATON SAID THE BULK OF MR EATON'S MESSAGE TO SHAREHOLDERS WAS POSITIVE HE SAID THAT SINCE THE LAST ANNUAL MEETING CHRYSLER'S SALES ARE UP 24 ITS MARKET SHARE IS UP 17 AND ITS MARKET CAPITALIZATION HAS INCREASED TO 15 BILLION FROM 55 BILLION IN ADDITION CHRYSLER HAS REDUCED THE INCENTIVES OR REBATES IT GIVES ITS CUSTOMERS TO ABOUT 1000 A VEHICLE FROM ROUGHLY 1300 IN THE FIRST QUARTER OF LAST YEAR BUT DESPITE THE GOOD NEWS MR EATON SOUNDED A NOTE OF CAUTION HE SAID CHRYSLER MUST BUILD UP A 5 BILLION CASH CUSHION TO SEE IT THROUGH THE NEXT DOWNTURN IN THE BUSINESS CYCLE THE COMPANY ALREADY HAS SET ASIDE ABOUT 3 BILLION TO MEET THAT GOAL CHRYSLER OFFICIALS SAID IN A SHOT AT HIS DOMESTIC COMPETITORS MR EATON SAID CHRYSLER HAS LEARNED TO DEVELOP NEW VEHICLES MUCH LESS EXPENSIVELY THAN FORD OR GM DO THE MOST SUCCESSFUL BIG THREE SEDAN OF THE '80S WAS THE TAURUSSABLE IT TOOK FORD BETWEEN FIVE AND SIX YEARS TO BRING IT TO MARKET AND THE COST WAS 25 BILLION IN 1986 DOLLARS MORE RECENTLY ACCORDING TO PUBLISHED REPORTS FORD INVESTED SIX YEARS AND 6 BILLION IN THEIR NEW MONDEO BY CONTRAST MR EATON TOLD A GROUP OF A FEW HUNDRED SHAREHOLDERS CHRYSLER DEVELOPED ITS LH SEDANS WITH 16 BILLION AND IN LITTLE MORE THAN THREE YEARS SIMILARLY MR EATON SAID GM SPENT 5 BILLION TO DEVELOP THE SATURN WHILE CHRYSLER WILL SPEND ONLY 13 BILLION ON ITS NEON BEFORE IT BRINGS THE SMALL CAR TO MARKET EARLY NEXT YEAR TO EMPHASIZE ITS EFFICIENCY CHRYSLER TOOK SHAREHOLDERS ON A TOUR OF ITS NEARBY BRAMALEA ONTARIO ASSEMBLY PLANT WHERE IT PRODUCES LH SEDANS INCLUDING THE DODGE INTREPID AND THE LHS CHRYSLER SELLS THE CARS FOR A COUPLE OF THOUSAND DOLLARS MORE THAN THE DODGE DYNASTIES AND IMPERIALS THEY REPLACE BUT THE LH'S ARE LESS COSTLY FOR CHRYSLER TO PRODUCE MR EATON SAID CHRYSLER IS WELLPOSITIONED TO ENJOY THE ECONOMIC RECOVERY AND PREDICTED THAT 154 MILLION VEHICLES WILL BE SOLD IN THE US AND CANADA THIS YEAR UP FROM 143 MILLION LAST YEAR IN 1994 THAT WILL RISE TO 168 MILLION HE PROJECTED MR EATON'S FIRST MEETING AS CHAIRMAN WAS ALSO LEE A IACOCCA'S FIRST MEETING OFF THE DAIS MR IACOCCA RETIRED AT THE END OF LAST YEAR ALTHOUGH HE REMAINS A BOARD MEMBER AND CHAIRMAN OF THE BOARD'S EXECUTIVE COMMITTEE ASKED ABOUT HIS RETIREMENT A TANNED MR IACOCCA SAID LITTLE OTHER THAN THAT HE WAS LOAFING CHRYSLER STOCK CLOSED AT 4325 A SHARE DOWN 50 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9305210195 930521 GARDEN STATE PARK OPERATIONS CHERRY HILL NJ INTERNATIONAL THOROUGHBRED BREEDERS INC SAID IT WILL TERMINATE RACING OPERATIONS AT GARDEN STATE PARK HERE DEC 4 SUBJECT TO POSSIBLE EARLIER DISPOSAL OR SALE OF THE PROPERTY THE COMPANY SAID IT HAS INCURRED LOSSES OF MORE THAN 78 MILLION AT GARDEN STATE PARK SINCE IT OPENED THE FACILITY IN APRIL 1985 ROBERT E BRENNAN CHAIRMAN OF INTERNATIONAL THOROUGHBRED BREEDERS SAID THE COMPANY'S BOARD DECIDED TO DISENGAGE FROM HORSE RACING DISPOSE OF THE PROPERTY AND CONCENTRATE ON OTHER FIELDS OF BUSINESS 9305210194 930521 FINANCING BUSINESS VALHI INC VALHI INC DALLAS SAID ITS VALCOR INC SUBSIDIARY FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 125 MILLION PRINCIPAL AMOUNT OF SENIOR NOTES DUE 2003 THE ISSUE IS BEING UNDERWRITTEN BY MORGAN STANLEY & CO AND MERRILL LYNCH & CO THE PROCEEDS WILL BE USED TO RETIRE DEBT INCLUDING VALHI'S OUTSTANDING 125 SENIOR SUBORDINATED NOTES DUE 1998 VALHI IS A DIVERSIFIED COMPANY ENGAGED IN THE REFINED SUGAR INDUSTRY AND THROUGH VALCOR IN THE FOREST PRODUCTS FAST FOOD AND HARDWARE PRODUCTS INDUSTRIES 9305210193 930521 WHO'S NEWS LOTUS DEVELOPMENT CORP LOTUS DEVELOPMENT CORP CAMBRIDGE MASS MICHAEL PORTER A HARVARD BUSINESS SCHOOL PROFESSOR AND HENRI TERMEER CHAIRMAN AND PRESIDENT OF GENZYME CORP WERE NAMED DIRECTORS OF THIS SOFTWARE COMPANY EXPANDING THE BOARD TO SEVEN DIRECTORS 9305210192 930521 WHO'S NEWS MAYNARD OIL CO MAYNARD OIL CO DALLAS RALPH E GRAHAM MANAGING PARTNER OF DAY OIL CO WAS ELECTED TO THE BOARD OF THIS OIL AND NATURAL GAS COMPANY THE ADDITION OF 73YEAROLD MR GRAHAM INCREASES THE BOARD TO FOUR MEMBERS SHAREHOLDERS ALSO APPROVED AN AMENDMENT THAT LOWERS THE VOTING REQUIREMENT NECESSARY TO APPROVE A COMPANY MERGER A PROPOSED MERGER CAN NOW BE APPROVED WITH A SIMPLE MAJORITY OF VOTING SHARES AS AGAINST THE PREVIOUSLY REQUIRED 80 9305210191 930521 WHO'S NEWS GREEN MOUNTAIN POWER CORP GREEN MOUNTAIN POWER CORP SOUTH BURLINGTON VT DOUGLAS G HYDE EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE JULY 1 MR HYDE 50 YEARS OLD SUCCEEDS JOHN V CLEARY WHO IS RETIRING AFTER 10 YEARS HEADING THIS ELECTRIC UTILITY 9305210190 930521 TECHNOLOGY & HEALTH COMPUTER ASSOCIATES HAS RECORD NET FOR YEAR FOR QUARTER BOOSTS PAYOUT 40 BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CONTINUING TO DEFY GLOOMY EXPECTATIONS FOR THE MAINFRAME COMPUTER MARKET SOFTWARE CONCERN COMPUTER ASSOCIATES INTERNATIONAL INC ROARED TO ITS BEST QUARTERLY AND YEARLY EARNINGS EVER ANNOUNCED A 40 DIVIDEND INCREASE AND SAW ITS STOCK CLIMB TO AN ALLTIME HIGH NET INCOME IN THE YEAR ENDING MARCH 31 SOARED 51 TO 2455 MILLION OR 144 A SHARE FROM 1629 MILLION OR 92 CENTS A SHARE IN FISCAL 1992 REVENUE ROSE 22 TO 184 BILLION FROM 151 BILLION DESPITE THE COLLAPSE IN MAINFRAME HARDWARE SALES THE ISLANDIA NY COMPANY SAW CUSTOMERS SNAP UP NEW SOFTWARE TO MAKE THEIR COMPUTERS MORE POWERFUL AND EFFICIENT IN AN INTERVIEW COMPUTER ASSOCIATES EXECUTIVE VICE PRESIDENT SANJAY KUMAR SAID HE WAS COMFORTABLE WITH NEW PREDICTIONS THAT NET WILL LEAP ANOTHER 20 IN THE COMING YEAR IN NEW YORK STOCK EXCHANGE TRADING COMPUTER ASSOCIATES JUMPED 125 TO 30 A RECORD IN THE FOURTH QUARTER NET CLIMBED 72 TO 991 MILLION OR 57 CENTS A SHARE FROM 577 MILLION OR 33 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 15 TO 5401 MILLION FROM 4699 MILLION ANALYSTS HAD BEEN EXPECTING FOURTHQUARTER EARNINGS OF ABOUT 48 CENTS A SHARE ONE REASON FOR THE CAUTION THE WELLPUBLICIZED CRISIS AT INTERNATIONAL BUSINESS MACHINES CORP HAS SET OFF A RUSH OF PREDICTIONS THAT MAINFRAME COMPUTERS ARE DEAD BUT MR KUMAR SAID COMPUTER ASSOCIATES RANG UP 423 MILLION IN MAINFRAME SOFTWARE REVENUE IN THE FOURTH QUARTER UP FROM 392 MILLION IN THE THIRD QUARTER IT CLEARLY IS AN AREA WHERE THERE'S CONTINUED GROWTH FOR THE SOFTWARE BUSINESS HE SAID MR KUMAR ATTRIBUTED PART OF THE GAIN TO A MAJOR EFFORT TO IMPROVE CUSTOMER RELATIONS WHICH HE CONCEDED HAD RUN INTO SERIOUS TROUBLE ONE OF THE BIG THINGS HANGING OVER THE COMPANY IS THAT WE'VE ALIENATED CLIENTS HE SAID ADDING THAT CUSTOMERS WERE BUYING RIVAL PRODUCTS NOT BECAUSE THEY WERE BETTER BUT BECAUSE THEY HAD PROBLEMS WITH US MR KUMAR SAID COMPUTER ASSOCIATES ATTACKED THE PROBLEM BY DEPLOYING 200 NEW SERVICE EMPLOYEES OVER THE LAST YEAR HE SAID THE EMPLOYEES AREN'T BEING PAID SALES COMMISSIONS AND CALLED THE PROGRAM THE BEST THING WE'VE EVER DONE COMPUTER ASSOCIATES RAISED ITS SEMIANNUAL DIVIDEND TO SEVEN CENTS A SHARE FROM FIVE CENTS A SHARE THE DIVIDEND WILL BE PAID JULY 6 TO SHAREHOLDERS OF RECORD JUNE 21 THE COMPANY ALSO SAID IT APPROVED A PLAN TO ADD 10 MILLION SHARES TO ITS STOCK BUYBACK PROGRAM UNDER A PROGRAM BEGUN IN AUGUST 1990 COMPUTER ASSOCIATES HAS BOUGHT BACK ABOUT 22 MILLION OF 30 MILLION SHARES THE COMPANY HAS ABOUT 166 MILLION SHARES OUTSTANDING 9305210189 930521 WHO'S NEWS PHILADELPHIA SUBURBAN CORP PHILADELPHIA SUBURBAN CORP BRYN MAWR PA NICHOLAS DEBENEDICTIS WAS NAMED CHAIRMAN SUCCEEDING JOHN W BOYER JR MR DEBENEDICTIS 47 YEARS OLD REMAINS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY WHICH IS THE PARENT OF PHILADELPHIA SUBURBAN WATER CO THE 64YEAROLD MR BOYER WHO SERVED AS CHAIRMAN FOR 16 YEARS WILL REMAIN WITH THE COMPANY IN AN UNTITLED POSITION UNTIL HE RETIRES IN AUGUST THE COMPANY SAID ALSO G FRED DIBONA JR PRESIDENT AND CHIEF EXECUTIVE OF INDEPENDENCE BLUE CROSS WAS ELECTED A DIRECTOR OF PHILADELPHIA SUBURBAN SUCCEEDING JAMES M BALLENGEE 9305210188 930521 BETHLEHEM STEEL LABOR ACCORDS BETHLEHEM PA BETHLEHEM STEEL CORP SAID MEMBERS OF THE UNITED STEELWORKERS UNION RATIFIED LABOR CONTRACTS FOR ITS STRUCTURAL PRODUCTS BUSINESS CLEARING THE WAY FOR A MODERNIZATION OF THE DIVISION THE STEELMAKER WHICH WILL PROPOSE THE MODERNIZATION TO ITS BOARD WITHIN 120 DAYS ALSO SAID WORKERS APPROVED ACCORDS AT ITS BETHFORGE FORGING DIVISION AND ITS CENTEC ROLLCASTING BUSINESS BETHLEHEM HASN'T YET REACHED AN AGREEMENT WITH WORKERS AT ITS TWO MAIN PLANTS THAT AGREEMENT WOULD REPLACE AN ACCORD THAT EXPIRES JULY 31 ALONG WITH SEVERAL OTHERS IN THE INDUSTRY 9305210187 930521 MARKETING & MEDIA ADVERTISING BMW SHIFTS ITS GEARS IN NEW ADS TAKES A RISK BY TARGETING RIVALS BY KEVIN GOLDMAN BMW IS ONE FRUSTRATED LUXURY CAR COMPANY DURING THE 1980S THE SLEEK PRICEY AUTOMOBILES CAME TO SYMBOLIZE THE YUPPIE DREAM WITH SHARPLY FOCUSED COMMERCIALS THAT STRESSED FLAWLESS ROAD PERFORMANCE BUT THAT DECADE IS OVER AND BMW OF NORTH AMERICA THE US UNIT OF BAYERISCHE MOTOREN WERKE AG IS LOOKING TO UPDATE ITS IMAGE ALTHOUGH SALES OF ITS VARIOUS MODELS ARE STRONGER THAN THE OVERALL IMPORT LUXURY MARKET BMW WANTS TO LURE BUYERS WHO TRADITIONALLY BYPASSED THE BEEMER SUCH AS SOCALLED OLDER EMPTY NESTERS AGING BABY BOOMERS WOMEN AND YOUNG SINGLES NOW IN A RISKY MOVE BMW AND ITS NEW MIDSIZE AD AGENCY MULLEN ADVERTISING ARE RETOOLING THE CAR'S IMAGE IN TELEVISION COMMERCIALS THAT BREAK NATIONWIDE MONDAY FOR THE FIRST TIME BMW IS TARGETING THE COMPETITION HOPING TO CONVINCE BUYERS THAT THE CARS ARE NOT AS INACCESSIBLE OR EXPENSIVE AS THEY MIGHT THINK THE NEW ADS ARE LAUNCHING BMW'S V8 POWERED 5SERIES MODELS WHICH START AT 40000 ALTHOUGH RIVAL AUTOS ARE NOT MENTIONED SPECIFICALLY BY NAME THE SPOTS POKE FUN AT COMMERCIALS FOR TOYOTA MOTOR'S LEXUS AND NISSAN MOTOR'S ALTIMA THE WINE GLASS TEST HAS BEEN A LITTLE OVERDONE THE AD BEGINS AS THE VIEWER SEES A HUGE PYRAMID OF GLASSES STACKED UPON ONE ANOTHER LEXUS AND ALTIMA USE WINE GLASSES IN THEIR ADS SO HAS THE BALL BEARING TEST IT CONTINUES AS A DOZEN OR SO SILVER BALLS SLIDE ALONG THE HOOD OF A CAR MUCH LIKE THEY DO IN ADS FOR LEXUS THE NEW BMW AD WHICH INCLUDES THE ODDEST SHOTS OF COWS GRAZING ON THE GRASS AND DAISIES SHOT IN HANDHELD ARTSY SLOW MOTION STRESSES THAT WHAT REALLY COUNTS ARE TESTS SUCH AS STOPPING ON A DIME AS WHEN A MENACING BRANCH SUDDENLY FALLS FROM A TREE THE AD ENDS THEIR SENSE OF THE ROAD REDUCES THE COMPETITION TO SENSELESS LUXURY ANOTHER SPOT SHOWS A DRIVER FILMED IN A BLUE TINT WEARING HEADPHONES BOXING GLOVES AND SITTING ON A PUFFED UP PILLOW THE VOICEOVER EXPLAINS THAT'S WHAT IT FEELS LIKE TO DRIVE MOST LUXURY CARS WHILE THE BMW IS A BETTER DRIVING EXPERIENCE THOUGH ANALYSTS HAVEN'T SEEN THE ADS SOME WORRY THAT THE NEW ADS MIGHT ACTUALLY ALIENATE THE CORE BMW BUYER ONE OF THE STRENGTHS OF BMW'S IMAGE IS THAT IT WAS WELLFOCUSED SAYS SUSAN JACOBS AN ANALYST WITH JACOBS AUTOMOTIVE AN AUTO FORECASTING AND CONSULTING FIRM IN TRYING TO BROADEN ITS MARKET IF IT TRIES TO APPEAL TO A NUMBER OF NEW AUDIENCES AT THE SAME TIME BMW COULD WIND UP BLURRING ITS IMAGE THE NEW BMW COMMERCIALS HAVE BEEN WIDELY ANTICIPATED ALONG MADISON AVENUE BECAUSE IT IS THE FIRST BMW WORK FROM MULLEN A SMALL AGENCY IN SUBURBAN BOSTON WITH ONLY 108 MILLION IN ANNUAL BILLINGS THE AGENCY WON THE 80 MILLION ACCOUNT IN FEBRUARY AFTER IT WAS UNEXPECTEDLY PLACED IN REVIEW AND BMW'S THENINCUMBENT AGENCY OF 18 YEARS AMMIRATI & PURIS SUMMARILY QUIT REFUSING TO PARTICIPATE THE ACCOUNT WAS PLACED IN REVIEW BECAUSE BMW FELT WE SHOULD CONSTANTLY CHARGE OURSELVES TO BE BETTER AND NOT STAND STILL SAYS VICTOR DOOLAN BMW'S EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING MULLEN PRESENTED BMW WITH OVER 80 IDEAS AND ALL AT BMW AGREED WITH MULLEN THAT THE WAY TO GO WAS WITH A CAMPAIGN THAT SAID ANY CAR THAT DEADENS YOUR SENSE OF THE ROAD IS GUILTY OF SENSELESS LUXURY BUT INTERESTINGLY BMW KEPT AMMIRATI'S WINNING SLOGAN THE ULTIMATE DRIVING MACHINE WE ARE MOVING IN AN EVOLUTIONARY NOT REVOLUTIONARY WAY SAYS MR DOOLAN EXPLAINING THE DESIRE TO HANG ONTO THE SLOGAN AMMIRATI'S ADS APPARENTLY WORKED ON SOME LEVEL HOWEVER ACCORDING TO MS JACOBS BMW'S SALES ROSE 23 TO 65693 LAST YEAR WHILE LUXURY IMPORTS OVERALL ROSE 3 JAMES X MULLEN THE AGENCY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WHO SAYS HE OWNS FOUR BMWS AND HAS OWNED BMWS FOR 28 OF THE 32 YEARS HE HAS PURCHASED CARS SAID THE ADS NEEDED TO EMBRACE OTHER BMW CHARACTERISTICS SUCH AS SAFETY THIS ISN'T THE FIRST TIME BMW HAS TRIED TO STEER THE FOCUS AWAY FROM ITS YUPPIE IMAGE IN 1991 ITS CAMPAIGN WAS LOADED WITH FACTS ABOUT ENGINEERING SAFETY AND NEW DESIGN FEATURES AND LESS ON LIFESTYLE NOW BMW IS SHOWING CHILDREN THREE KIDS SITTING IN THE AUTO'S BACKSEAT WITH SPOONS ON THEIR NOSES IN ITS PRINT ADS FOR THE FIRST TIME WE'RE A SAFETY LEADER SAYS MR DOOLAN ALTHOUGH BMW ISN'T INCREASING AD SPENDING IT HIRED THE MEDIA BUYING FIRM DEWITT MEDIA TO HANDLE ITS PLACEMENT GENE DEWITT HEAD OF THE FIRM PROMISES THAT NO ONE WILL BE ABLE TO ESCAPE THE BELLS AND WHISTLES AD BLITZ BMW HAS PLANNED BESIDES THE TELEVISION CAMPAIGN BMW IS PLANNING BILLBOARDS AND SPONSORSHIPS AS WELL AS A FIVEPAGE INSERT PLACED IN MAGAZINES SUCH AS TIME NEWSWEEK AND BUSINESS WEEK BMW IS ALSO PLACING ADS IN NATIONAL AND REGIONAL NEWSPAPERS TWO OTHER PRINT ADS ARE PLANNED DOWN THE ROAD INCLUDING THE ONE WITH THE KIDDIES AND THE TWO TELEVISION ADS BREAKING NEXT WEEK ARE JUST THE FIRST PHASE OF A SLOW ROLL OUT OF THE NEW CAMPAIGN THE SECOND PHASE WON'T BE AIRING UNTIL SEPTEMBER AND NEITHER BMW EXECUTIVES NOR MR MULLEN WOULD GIVE SPECIFICS OF THE UPCOMING ADS MR MULLEN SAYS THE IDEA OF GOING AFTER THE COMPETITION WITH THE PHRASE SENSELESS LUXURY WHICH PROBABLY WON'T BE AROUND FOR AS LONG AS THE THE ULTIMATE DRIVING MACHINE SLOGAN CAME TO MULLEN EXECUTIVES ON THE AIRPLANE RIDE BACK FROM BMW HEADQUARTERS IN GERMANY AFTER A FOURDAY VISIT BMW SAYS MR DOOLAN IS AN ENJOYABLE CAR TO DRIVE HE CONTINUES WE HAVE TO ARTICULATE THIS IN OUR ADS COCACOLA CO SAID IT WOULD INCREASE 1993 AD SPENDING ON COCACOLA BY 21 MILLION FROM WHAT IT HAD BUDGETED CITING OVERWHELMINGLY POSITIVE RESPONSE TO THE ALWAYS COCACOLA CAMPAIGN CREATED BY BEVERLY HILLS TALENT AGENCY CREATIVE ARTISTS AGENCY ALTHOUGH COKE WOULDN'T SAY WHAT IT HAD INTENDED TO SPEND ON THE CAMPAIGN THE COMPANY HAS SAID THAT SPENDING THIS YEAR IS GREATER THAN LAST YEAR THE COMPANY SPENT AN ESTIMATED 91 MILLION ON COCACOLA CLASSIC IN 1992 ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TRACKS AD SPENDING COKE SAID THAT AWARENESS OF THE ALWAYS COCACOLA CAMPAIGN WAS HIGH AND THAT ITS RESEARCH SHOWED STATISTICALLY SIGNIFICANT INCREASES IN SUCH MEASURES AS LIKABILITY BRAND PREFERENCE AND PURCHASE INTENT FOUR MORE OF THE 24 SPOTS THAT CAA CREATED FOR COKE HAVE BEEN EARMARKED TO START BROADCASTING THIS SUMMER ALTHOUGH COKE WOULDN'T SAY WHEN THEY INCLUDE ONE THAT TRACES A BOTTLE OF COKE FROM THE GROCERY STORE TO A PICNIC AND ONE COMPOSED OF JUST A SWEATING COKE BOTTLE AND SOUNDS OF SUMMER ACTIVITIES IN ADDITION 10 SPOTS FOR THE SUMMER FROM AGENCIES THAT CREATE ADS TARGETED TO ETHNIC GROUPS FOR COCACOLA BURRELL ADVERTISING OF CHICAGO AND SOSA BROMLEY AGUILAR & ASSOCIATES OF SAN ANTONIO ARE STARTING TO AIR PARAMOUNT PICTURES AND MCDONALD'S ANNOUNCED A SWEEPING PROMOTION IN WHICH MCDONALD'S WILL PROMOTE TWO OF THE STUDIO'S BIG CHRISTMAS MOVIES AND SELL FOUR OTHER MOVIES ON VIDEOCASSETTE AT A DISCOUNT IN ITS FASTFOOD OUTLETS VIDEO RETAILERS WENT BALLISTIC LAST YEAR WHEN MCDONALD'S TEAMED WITH ORION'S CASHSTRAPPED HOMEVIDEO OPERATIONS TO SELL INEXPENSIVE COPIES OF DANCES WITH WOLVES AT MCDONALD'S PARAMOUNT EXECUTIVES SAID ITS PROMOTION IS DIFFERENT BECAUSE THE VIDEOS IT WILL SELL INCLUDE REBATES ON OTHER MOVIES THAT ENCOURAGE CONSUMERS TO GO TO VIDEO STORES THE VIDEOS IT WILL SELL AT 599 ARE WAYNE'S WORLD THE ADDAMS FAMILY GHOST AND CHARLOTTE'S WEB THE MAJOR PART OF THE PROMOTION HOWEVER HAS MCDONALD'S AGREEING TO PITCH PARAMOUNT'S HOLIDAY MOVIES ADDAMS FAMILY VALUES AND WAYNE'S WORLD II TERMS WEREN'T DISCLOSED BUT PEOPLE FAMILIAR WITH THE DEAL SAID MCDONALD'S MIGHT SPEND AS MUCH AS 25 MILLION OR MORE ON TV ADVERTISING SPOTLIGHTING THE DEAL PARAMOUNT IS A UNIT OF PARAMOUNT COMMUNICATIONS REMINGTON REMINGTON PRODUCTS THE BRIDGEPORT CONN SHAVER COMPANY NARROWED THE FIELD OF COMPETITORS FOR ITS ESTIMATED 10 MILLION TO 15 MILLION ADVERTISING ACCOUNT TO FOUR SHOPS ALLY & GARGANO GREY ADVERTISING AND TOWNE SILVERSTEIN ROTTER ALL NEW YORK AND ATLAS GROUP THE SAN FRANCISCO STARTUP SHOP OF FORMER ATLAS CITRON HALIGMAN & BEDECARRE EXECUTIVE JEFF ATLAS PETER CUNEO REMINGTON PRESIDENT AND CHIEF OPERATING OFFICER SAID THE FINALISTS' CREATIVE WORK WOULD BE TESTED OVER THE NEXT THREE WEEKS 90 OF THE DECISION HE SAID WOULD BE BASED ON THE TEST SCORES ACCOUNTS SARA LEE CORP'S KIWI BRANDS UNIT ASSIGNED ADVERTISING FOR ITS BEHOLD AND ENDUST BRANDS TO GREY ADVERTISING NEW YORK WITHOUT A REVIEW THE BRANDS PART OF THE OLD DRACKETT DIVISION OF BRISTOLMYERS SQUIBB BILL A COMBINED ESTIMATED 5 MILLION INDUSTRY EXECUTIVES ESTIMATE THE BRANDS WERE PREVIOUSLY AT INTERPUBLIC GROUP'S LCF&L NEW YORK CADBURY BEVERAGES GROUP A UNIT OF CADBURY SCHWEPPES PLC AWARDED ITS OASIS FRUIT LEMONADE ACCOUNT TO FOOTE CONE & BELDING COMMUNICATIONS CHICAGO THE AGENCY THAT HANDLES ITS CANADA DRY BEVERAGE LINE BILLINGS FOR THE NEW PRODUCT COULDN'T BE DETERMINED WHO'S NEWS PAT BURNHAM WHO RESIGNED AS CREATIVE DIRECTOR AT MINNEAPOLIS AGENCY FALLON MCELLIGOTT IN MARCH IS TAKING UP COMMERCIAL DIRECTING AT THE MINNEAPOLIS PRODUCTION SHOP WILSONGRIAK MR BURNHAM 46 SAID HE IS SENDING OUT HIS SAMPLE REEL TO AGENCIES INCLUDING FALLON MCELLIGOTT ON MONDAY 9305210186 930521 THREE OIL FIRMS MIGHT MERGE CASPIAN PROJECTS AZERBAIJAN REQUESTS LINK BP PENNZOIL AMOCO ARE UNSURE ON IMPACT BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON AZERBAIJAN NOTIFIED PENNZOIL CO AMOCO CORP AND BRITISH PETROLEUM CO THAT THEY SHOULD COMBINE THEIR SEPARATE OILFIELD DEVELOPMENTS IN THE CASPIAN SEA INTO ONE MEGAPROJECT WITH THE POTENTIAL OF RECOVERING FIVE BILLION BARRELS OF OIL EACH OF THESE COMPANIES EITHER SEPARATELY OR IN CONJUNCTION WITH OTHER OIL COMPANIES HAD BEEN PROCEEDING ON THEIR OWN CASPIAN SEA DEVELOPMENT PROJECTS ESTIMATES FOR THE CAPITAL NEEDED TO DEVELOP THESE FIELDS WERE WELL OVER 5 BILLION PENNZOIL AMOCO AND BP SAID THEY WEREN'T IMMEDIATELY SURE WHAT FORM THE COMBINATION WOULD TAKE OR WHAT THE IMPACT POSITIVE OR NEGATIVE WOULD BE ON THEIR COMPANIES THE TURNABOUT IN PLANS FROM AZERBAIJAN AND ITS STATEOWNED OIL COMPANY REFLECT THE CHALLENGES OF DOING BUSINESS IN THE FORMER SOVIET UNION WHERE RULES CAN CHANGE QUICKLY MANY OIL COMPANIES FOR INSTANCE HAVE BEEN FRUSTRATED BY CHANGES AND PROPOSED CHANGES IN TAX LAWS THAT WOULD REDUCE THEIR PROFITS AND HAVE CREATED NERVOUS UNCERTAINTY ALTHOUGH AZERBAIJAN AND OTHER FORMER MEMBERS OF THE SOVIET UNION OFFER THE OPPORTUNITY TO WESTERN COMPANIES TO TAP INTO SOME OF THE WORLD'S BIGGEST OIL FIELDS BUREAUCRATIC DELAYS AND THE INABILITY TO COMPLETE CONTRACTS HAVE SLOWED THE PACE OF DEVELOPMENT BASICALLY WESTERN TECHNOLOGY AND CAPITAL ARE NEEDED BUT THE NEW STATES ARE NERVOUS ABOUT GIVING TOO MUCH AWAY AND DEVELOPING THEIR NATURAL RESOURCES INEFFICIENTLY JAMES L PATE CHIEF EXECUTIVE OFFICER OF PENNZOIL SAID THERE'S NO QUESTION ABOUT OUR PLANS TO PROCEED A BP SPOKESMAN SAID THE COMPANY WELCOMES THE PROPOSAL AND BELIEVES IT IS THE WAY TO PROCEED AN AMOCO SPOKESWOMAN SAID THE COMPANY WOULD PREFER TO SEE THE FIELDS COMBINED TO LOWER COSTS BUT WAS STILL WILLING TO GO AHEAD SEPARATELY WALL STREET WAS ALSO UNCERTAIN ABOUT THE IMPACT ON EACH COMPANY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AMOCO STOCK ROSE 25 CENTS TO CLOSE AT 5675 AND BRITISH PETROLEUM AMERICAN DEPOSITARY SHARES ROSE 25 CENTS TO CLOSE AT 5875 BUT PENNZOIL STOCK FELL 125 CENTS TO CLOSE AT 6425 GEOLOGICALLY THE THREE FIELDS APPEAR TO BE ONE LARGE FIELD MR PATE SAID PENNZOIL RECEIVED A MEMORANDUM OF UNDERSTANDING WEDNESDAY FROM AZERBAIJAN INFORMING THE COMPANY OF THE PROPOSED COMBINATION HE SAID A WORK GROUP OF ALL PARTIES WILL BE ESTABLISHED TO IRON OUT DETAILS THE AMOCO SPOKESWOMAN SAID AZERBAIJAN'S STATE OIL COMPANY HASN'T MADE A FINAL DECISION YET WHETHER TO COMBINE THE FIELDS AND SAID THERE WAS STILL THE POSSIBILITY OF SEPARATE CASPIAN SEA PROJECTS INITIALLY PENNZOIL HAD SIGNED AGREEMENTS WITH AZERBAIJAN FOR DEVELOPMENT OF THE CASPIAN SEA'S GUNESHLI FIELD WITH AN ESTIMATED 14 BILLION BARRELS OF RECOVERABLE OIL BUT THE PROJECT'S SLOW PACE IS TYPICAL OF DEVELOPMENTS IN THE FORMER SOVIET UNION FOR A WHILE THERE WERE A NUMBER OF DELAYS MR PATE SAID WE THOUGHT WE MIGHT HAVE A CONTRACT EARLIER THIS YEAR BUT IT SLIPPED FROM ONE MONTH TO ANOTHER MR PATE SAID HE WAS ACTUALLY ENCOURAGED BY THE LATEST DEVELOPMENT BECAUSE IT MOVES THE PROJECT FORWARD AN AMOCOLED GROUP WAS PLANNING TO DEVELOP THE AZERI FIELD WITH PARTNERS INCLUDING UNOCAL CORP MCDERMOTT INTERNATIONAL INC BP AND THE NORWEIGAN STATE OIL COMPANY KNOWN AS STATOIL BP IN ANOTHER ALLIANCE WITH STATOIL WAS DEVELOPING THE CHIRAG FIELD AT A COST OF 2 BILLION TO 3 BILLION BP HAD ALREADY BEGUN CONSTRUCTING EQUIPMENT AT A YARD OUTSIDE OF AZERBAIJAN'S OIL CENTER OF BAKU IN OILINDUSTRY JARGON THE THREE FIELDS ARE TO BE UNITIZED TYPICALLY UNDER UNITIZATION OWNERS OF INTERESTS IN AN OIL FIELD POOL THEIR INTERESTS SO THE FIELD CAN BE OPERATED AS IF IT HAD ONE OWNER UNITIZATION IS SUPPOSED TO INCREASE EFFICIENCY AND ENHANCE THE ABILITY TO DRAW MORE RESERVES FROM A FIELD IN THIS CASE THE THREE COMPANIES COULD REDUCE COSTS BY SHARING IN THE MASSIVE ABOVEGROUND INFRASTRUCTURE OF PIPELINES AND PRODUCTION FACILITIES THAT WOULD BE NEEDED FOR DEVELOPMENT 9305210185 930521 WHO'S NEWS COPLEY PHARMACEUTICAL INC COPLEY PHARMACEUTICAL INC CANTON MASS ANTHONY A BONELLI WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DRUG MAKER SUCCEEDING JANE CI HIRSH WHO REMAINS CHAIRWOMAN AND CHIEF EXECUTIVE OFFICER MR BONELLI WAS VICE PRESIDENT OF INSTITUTIONAL HEALTH CARE FOR THE PARKE DAVIS DIVISION OF WARNERLAMBERT CO 9305210184 930521 WHO'S NEWS CONTINENTAL CORP CONTINENTAL CORP NEW YORK JOHN R ROWE 48 YEARS OLD WAS ELECTED A DIRECTOR OF THIS PROPERTY/CASUALTY INSURANCE COMPANY MR ROWE PRESIDENT OF MOUNT SINAI MEDICAL CENTER IN NEW YORK FILLS A VACANCY ON THE 14MEMBER BOARD 9305210183 930521 WHO'S NEWS STEVENS GRAPHICS CORP STEVENS GRAPHICS CORP FORT WORTH TEXAS ROBERT H BROWN JR 39 YEARS OLD AND JAMES D CAVANAUGH 54 WERE NAMED TO THE BOARD OF THIS MAKER OF PRINTING EQUIPMENT INCREASING THE BOARD'S SIZE TO NINE MR BROWN IS SENIOR VICE PRESIDENT AND DIRECTOR OF THE CORPORATE FINANCE DEPARTMENT OF RAUSCHER PIERCE REFSNES INC IN DALLAS MR CAVANAUGH WAS AN EXECUTIVE VICE PRESIDENT OF ROCKWELL GRAPHIC SYSTEMS PART OF ROCKWELL INTERNATIONAL UNTIL HIS RETIREMENT IN MARCH 9305210182 930521 SMITH INTERNATIONAL REDEMPTION HOUSTON SMITH INTERNATIONAL INC SAID IT WILL REDEEM ITS 875 CONVERTIBLE PREFERRED STOCK AT 25 A SHARE ON JUNE 21 THE 800000 PREFERRED SHARES CURRENTLY OUTSTANDING ARE CONVERTIBLE TO 25 MILLION COMMON SHARES AT 8 A SHARE THE OIL SERVICE COMPANY SAID REDEEMING THE PREFERRED STOCK WILL SAVE IT 18 MILLION A YEAR IN DIVIDENDS 9305210181 930521 WHO'S NEWS ALEXANDER & ALEXANDER SERVICES INC ALEXANDER & ALEXANDER SERVICES INC NEW YORK MICHAEL K WHITE 54 YEARS OLD WAS ELECTED PRESIDENT SUCCEEDING TH IRVIN 59 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR WHITE ALSO WAS ELECTED TO THE NEW POSITION OF CHIEF OPERATING OFFICER EXECUTIVE VICE PRESIDENT SINCE 1987 MR WHITE DIRECTS ALEXANDER & ALEXANDER'S GLOBAL INSURANCE AND RISK MANAGEMENT SERVICES THE COMPANY IS A LEADING INSURANCE BROKERAGE AND MANAGEMENT CONSULTING CONCERN 9305210180 930521 SMITHKLINE PACT WITH HGS PHILADELPHIA SMITHKLINE BEECHAM AND HUMAN GENOME SCIENCES INC HAVE FORMED AN ALLIANCE TO CONDUCT LARGESCALE GENE SEQUENCING THE PROCESS USED TO IDENTIFY THE STRUCTURE AND FUNCTION OF HUMAN GENES ACCORDING TO THE COMPANIES THE COMPANIES SAID THEY WILL USE THE INFORMATION TO DEVELOP NEW DRUGS AND DIAGNOSTIC PRODUCTS SMITHKLINE THE US UNIT OF SMITHKLINE BEECHAM PLC WILL HAVE EXCLUSIVE RIGHTS TO MOST PRODUCTS AND SERVICES DEVELOPED UNDER THE COLLABORATION HGS BASED IN ROCKVILLE MD WILL RECEIVE ROYALTIES AND WILL COPROMOTE SOME PRODUCTS THE COMPANY WILL ALSO RETAIN RIGHTS TO USE THE GENETIC DATA IN GENE THERAPY AND THE DESIGN OF ANTISENSE AGENTS 9305210179 930521 WHO'S NEWS GOODY PRODUCTS INC GOODY PRODUCTS INC KEARNY NJ KEVIN E WALSH 49YEAROLD EXECUTIVE VICE PRESIDENT FINANCE AND INTERNATIONAL OPERATIONS WAS ELECTED A DIRECTOR OF THIS HAIR ACCESSORIES COMPANY INCREASING THE BOARD TO 12 MEMBERS 9305210178 930521 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOURTH SHIFT CORP AN INITIAL OFFERING OF 35 MILLION COMMON SHARES VIA PIPER JAFFRAY INC AND VOLPE WELTY & CO HUNTCO INC AN INITIAL OFFERING FOR 27 MILLION CLASS A SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP VARITY CORP AN OFFERING OF FOUR MILLION SHARES OF COMMON STOCK VIA SMITH BARNEY HARRIS UPHAM & CO AND GOLDMAN SACHS & CO WAINOCO OIL CORP AN OFFERING OF FIVE MILLION SHARES OF COMMON STOCK VIA FIRST BOSTON CORP MERRILL LYNCH & CO AND JOHNSON RICE & CO 9305210177 930521 WHO'S NEWS CLOROX CO CLOROX CO OAKLAND CALIF CHARLES JED WILLIAMS WHO WAS A DIRECTOR OF FRITZ COS SAN FRANCISCO WAS NAMED VICE PRESIDENT OF INFORMATION SERVICES OF THIS HOUSEHOLD PRODUCTS MAKER MR WILLIAMS 43 YEARS OLD SUCCEEDS RAYMOND JOHNSON WHO RESIGNED FOR PERSONAL REASONS 9305210176 930521 WHO'S NEWS ITT CORP ITT CORP NEW YORK MARK ROUSSEAU WAS NAMED SENIOR VICE PRESIDENT DIRECTOR OF DEVELOPMENT AT ITT SHERATON CORP A UNIT OF THIS INTERNATIONAL CONGLOMERATE WITH INTERESTS IN FINANCE INSURANCE COMPUTERS AND DEFENSE MR ROUSSEAU 46 YEARS OLD JOINED ITT AS DIRECTOR OF GAMING DEVELOPMENT IN MARCH AND WAS ELECTED VICE PRESIDENT IN APRIL HE SUCCEEDS MICHAEL CRYAN 42 WHO WAS NAMED CHIEF FINANCIAL OFFICER 9305210175 930521 WHO'S NEWS ENSERCH CORP ENSERCH CORP DALLAS FRANK A MAIER 47 YEARS OLD PREVIOUSLY DIRECTOR OF PROJECT FINANCE AT WESTINGHOUSE ELECTRIC CORP WAS NAMED PRESIDENT OF PROJECT FINANCE A NEW POST AT THIS NATURAL GAS COMPANY'S DEVELOPMENT UNIT FRANK A MAIER WAS NAMED VICE PRESIDENT OF PROJECT FINANCE AT ENSERCH CORP'S DEVELOPMENT UNIT AN ITEM IN FRIDAY'S WHO'S NEWS COLUMN INCORRECTLY IDENTIFIED HIS NEW POSITION AS PRESIDENT OF PROJECT FINANCE AT THE UNIT 9305210174 930521 TRW RESTRUCTURING IS ESSENTIALLY OVER CUTTING 125 MILLION CLEVELAND TRW INC CHAIRMAN JOSEPH T GORMAN SAID THE COMPANY HAS ESSENTIALLY FINISHED ITS ONEYEARPLUS RESTRUCTURING WHICH WILL CUT 125 MILLION IN ANNUAL PRETAX COSTS BY YEAR END WE HAVE DONE WHAT WE SAID WE WOULD DO AT THE HIGH END OF THE COMPANY'S ESTIMATES MR GORMAN SAID TRW WILL HAVE RAISED NEARLY 500 MILLION FROM SELLING POORLY PERFORMING OR NONSTRATEGIC UNITS SUCH AS ITS AUTOMOTIVE AFTERMARKET BUSINESS AND A COMPUTER MAINTENANCE DIVISION BY YEAR END WHEN THE COMPANY STARTED THE RESTRUCTURING IT SAID IT EXPECTED TO RAISE 400 MILLION TO 500 MILLION FROM SELLING UNITS BUSINESS UNIT DIVESTITURES HAVE BROUGHT IN 450 MILLION TO DATE AND MR GORMAN EXPECTS ANOTHER 45 MILLION TO 50 MILLION BY YEAR END AMONG THE REMAINING UNITS TO BE SOLD ARE A FASTENER BUSINESS AND SEVERAL SMALL PIECES OF THE SPACE AND DEFENSE DIVISION TRW ALSO SLASHED COSTS AT EACH UNIT FOR EXAMPLE IN ITS INFORMATION SYSTEMS DIVISION THE COMPANY CONSOLIDATED TWO DATA CENTERS AND RENEGOTIATED LEASES TO TAKE ADVANTAGE OF THE WEAK REAL ESTATE MARKET SUCH ACTIONS WILL CUT ANNUAL EXPENSES IN INFORMATION SYSTEMS BY 55 MILLION BY YEAR END MR GORMAN SAID AND TRW HAS CUT ITS PAYROLL TODAY IT EMPLOYS 64000 DOWN FROM 72000 WHEN THE RESTRUCTURING BEGAN IN DECEMBER 1991 IN 1992 TRW HAD A LOSS OF 156 MILLION OR 251 A SHARE ON SALES OF 83 BILLION THE LOSS FOR 1992 INCLUDED A 350 MILLION ACCOUNTING CHARGE BEFORE THE CHARGE TRW EARNED 194 MILLION OR 309 A SHARE CHIEF AMONG THE BUSINESSES THAT WILL PROPEL TRW'S GROWTH IS ITS AIRBAG DIVISION MR GORMAN TERMED ITS GROWTH RATE LITERALLY HUGE PASSENGER SIDE AIR BAGS FOR EXAMPLE ARE EXPECTED TO SKYROCKET TO 47 MILLION IN 1994 FROM 700000 LAST YEAR THERE'S SIMPLY FAR GREATER CONSUMER DEMAND THAN ANYONE ANTICIPATED MR GORMAN SAID TRW TOO IS PUSHING DEEPER IN JAPAN BY 1997 TRW EXPECTS TO HAVE SALES TO JAPANESE AUTO COMPANIES OF 12 BILLION TO 15 BILLION COMPARED WITH LESS THAN 100 MILLION IN 1985 9305210173 930521 WHO'S NEWS XEROX CORP XEROX CORP STAMFORD CONN JOHN A LOPIANO 54 YEARS OLD PRESIDENT OF THIS BUSINESS EQUIPMENT COMPANY'S PRINTING SYSTEMS DIVISION AND BRIAN E STERN 45 HEAD OF CORPORATE BUSINESS STRATEGY WERE NAMED TO THE ADDITIONAL POSITIONS OF CORPORATE VICE PRESIDENTS 9305210172 930521 UNSUNG INVENTORS VIE FOR STARRING ROLE IN TV INFOMERCIAL COLORZBAIT CRAWLER CALLER' AND CHAINSAW WITH A BRAIN ARE AMONG THE BRIGHT IDEAS BY CRAIG SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BIG GAME FISH AREN'T COLORBLIND A FACT THAT ROY RAINBOW MAYER HOPES WILL MAKE HIM A TELEVISION STAR ANGLER LORE HAS LONG HELD THAT COLORED BAIT WOULD CATCH BIGGER TROPHIES BUT BAIT FISH ARE WELLCAMOUFLAGED CREATURES USUALLY A MURKY GRAY OR SO SHINY THEY REFLECT THEIR SURROUNDINGS NO ONE HAD FIGURED OUT HOW TO PAINT LIVE BAIT FISH BRIGHT COLORS UNTIL MR MAYER CAME ALONG HE SPAWNED A WORKABLE SOLUTION IN HIS GARAGE A FEW YEARS AGO AND NOW PAINTS MULLETS FUCHSIA OR MINNOWS CHARTREUSE THE COLORFUL TIDBITS DRIVE WALLEYE BASS AND BLUE MARLIN WILD MR MAYER CLAIMS AND HE HOPES TO GET RICH SELLING THE PAINT MR MAYER'S PROBLEM IS CONVINCING FISHERMEN TO TAKE THE PRODUCT SERIOUSLY HE RAN OUT OF MONEY TRYING TWO YEARS AGO AND WITHOUT MONEY HIS GREAT IDEA WAS JUST A FISH OUT OF WATER THEN HE HEARD ABOUT THE BREAKTHROUGH IDEAS CONTEST PROMISING 1 MILLION IN INFOMERCIAL TIME FOR THE WINNING CONCEPT MR MAYER FIGURES A HALFHOUR COMMERCIAL IS ABOUT WHAT IT WOULD TAKE TO TELL HIS FISH STORY CONVINCINGLY WHILE SHOTS OF WRIGGLING TECHNICOLORED BAIT WOULD LOOK GREAT ON TELEVISION IN FACT IDEAS LIKE MR MAYER'S FISH PAINT CALLED COLORZBAIT ARE JUST THE STUFF LATENIGHT PEDDLERS LOOK FOR TO FILL THEIR NEXT INFOMERCIAL TO FIND THEM REGAL GROUP THE PEOPLE WHO BROUGHT YOU FLOWBEE THE VACUUMCLEANER HAIRCUTTING SYSTEM HAS CAST OUT TO THINKERS BIG AND SMALL BY SPONSORING THE BREAKTHROUGH IDEAS CONTEST TOGETHER WITH SUCCESS MAGAZINE REGAL SAYS IT WILL EVEN HELP MANUFACTURE A PRODUCT IF THE IDEA IS GRAND ENOUGH THE CONTEST HAS LURED HUNDREDS OF WOULDBE SAM POPEILS THE MAN MADE RICH BY THE POCKET FISHERMAN THE VAST MAJORITY OF BREAKTHROUGHS SUBMITTED ARE MORE THE RUBE GOLDBERG THAN EINSTEIN VARIETY HOWEVER CONSIDER ROBERT GROSS'S ENTRY WHICH HE DUBBED THE CRAWLER CALLER MODELED ON AN INVENTION HE CAME UP WITH WHEN HE WAS JUST A KID THE ORIGINAL CONTRAPTION CONSISTED OF AN OLD HANDCRANK TELEPHONE GENERATOR WIRED TO TWO STEEL RODS TO TEST THE MACHINE LITTLE BOBBY STUCK THE RODS IN A PATCH OF DAMP GROUND AND GAVE THE CRANK A MIGHTY TURN IT KNOCKED THE DAYLIGHTS OUT OF ME MR GROSS SAYS NOW GROWN TO MANHOOD DESPITE THE EXPERIMENT HE REMAINS CONVINCED THAT PUMPING VOLTAGE INTO THE GROUND WILL PRODUCE A CROP OF NERVOUS EARTHWORMS WORMING THEIR WAY UP HIS NEXT MODEL WILL BE BATTERYOPERATED INFOMERCIALS ARE THE PERFECT VEHICLE TO BRING OFFBEAT INVENTIONS INTO THE LIGHT SAYS STEVE DWORMAN PUBLISHER OF THE INFOMERCIAL MARKETING REPORT A WEST LOS ANGELES NEWSLETTER HOWEVER THE INFOMERCIAL WINDOW ONLY RECENTLY OPENED IS CLOSING FOR SMALLTIMERS MASS MARKETERS HAVE DISCOVERED TELEVISION SALES ARE A MERE RIPPLE COMPARED WITH THE SWELL OF INSTORE SALES THAT FOLLOW A SUCCESSFUL INFOMERCIAL CAMPAIGN NOW BIGGER FISH SUCH AS PROCTER & GAMBLE AND GERMANY'S BRAUN ARE CROWDING THE INFOMERCIAL MARKET LIFTING THE COST OF INFOMERCIALS BEYOND THE REACH OF THE LITTLE GUY THAT'S THE APPEAL OF REGAL'S CONTEST IT GIVES INVENTORS A CHANCE TO TIE UP WITH A COMPANY THAT HAS SUFFICIENT CAPITAL AND EXPERTISE TO LAUNCH A PRODUCT THE PURPOSE OF THE CONTEST WAS NOT SO MUCH TO LOOK FOR A HOMERUN OUT OF THE BOX BUT TO CULTIVATE PEOPLE WITH IDEAS OPEN UP A PIPELINE TO SUCCESS MAGAZINE'S 400000 OR SO READERS SAYS REGAL CHAIRMAN ART TOLL MORE THAN 1500 IDEAS WERE SUBMITTED IN THE CURRENT CONTEST MANY WITH PROTOTYPES OR SELFPRODUCED INFOMERCIALS OF THEIR OWN OUT OF THE ENTRIES WILL EMERGE NOT ONLY A GRAND PRIZE WINNER BUT PROBABLY ANOTHER DOZEN OR SO PRODUCTS WITH GOOD COMMERCIAL APPLICATION MR TOLL SAYS INDEED NOT ALL THE IDEAS ARE FARFETCHED DON JENKINS A MANAGEMENT CONSULTANT IN COLUMBIA SC IS ALREADY MANUFACTURING AND MARKETING THE SHADOWMAKER A DEVICE THAT CASTS SHADOWS ON WINDOWS AND WALLS WHEN NO ONE'S HOME SIMULATING MOVEMENT TO DETER BURGLARS JOHN MERTZ AN INVENTOR BY TRADE IS PUSHING A SELFCLEANING LITTER BOX FOR CATS NONE OF THESE IDEAS ARE LIKELY TO LIFT THE INVENTORS OUT OF THEIR CURRENT LIVES FOR LONG REGAL'S MR TOLL WHO DELIGHTS IN THE PRODUCT IDEAS SPILLING OUT OF THE MAILBAGS AT HIS PENNSYLVANIABASED COMPANY SAYS THE TYPICAL INFOMERCIAL HAS AN ECONOMIC LIFE OF JUST 10 TO 12 MONTHS SELLING STEEL WOKS THERE ARE ANOMALIES REGAL'S CUISINE WOK INFOMERCIAL STILL RUNS OCCASIONALLY NEARLY FOUR YEARS AFTER THE TV SPOT HAWKING STEEL WOKS FROM CHINA WAS PRODUCED AT A COST OF ABOUT 11000 THE SHOW HAS GENERATED OVER 80 MILLION IN SALES NUMBERS LIKE THOSE KEEP INVENTORS TINKERING THROUGH THE NIGHT MORE THAN 80000 PATENTS ARE FILED BY AMERICANS EACH YEAR ABOUT A THIRD OF THEM BY SMALL INVENTORS THERE'S NOTHING LIKE TAKING SOMETHING YOU'VE CREATED WITH YOUR OWN HANDS AND SELLING IT TO SOMEBODY SAYS MR MAYER WHO HAS PUT HIS HOUSE IN HOCK AND SPENT AT LEAST 150000 ON COLORZBAIT BY FAR THE BIGGEST CHALLENGE FACING MANY OF THE CONTEST'S EAGER ENTRANTS IS HOW TO TRANSLATE THEIR FLIGHTS OF FANCY INTO HARDSELL TELEVISION THE PROBLEM CONFOUNDED MARY ANN TURNER WHO HAS AN UNLIKELY IDEA FOR A POWERTOOL SAFETY SENSOR THAT SHE ENVISIONS CONSISTING OF A SMALL BRAIN BOX ATTACHED TO A CHAINSAW FOR EXAMPLE THE GADGET WOULD USE A CHEMICAL SENSOR TO IDENTIFY LIVING ORGANISMS ACCORDING TO MS TURNER SHUTTING OFF THE POWER TOOL WHEN CONTACT WITH THE SKIN OCCURS WHATEVER THE TECHNOLOGICAL HURDLES MS TURNER CONCEDES PRESENTING THE IDEA ON TELEVISION IS DIFFICULT WITHOUT IT LOOKING LIKE A BAD REMAKE OF THE TEXAS CHAINSAW MASSACRE IF PARANOIA APPEARS TO LURK BENEATH MS TURNER'S THOUGHTS IT IS CLEARLY THE MOTIVATING FORCE FOR CLIFF GOLDFARB'S BREAKTHROUGH IDEA A RUBBER TELEPHONE GUARD CALLED THE CAREFUL CALLER GOLDFARB TRAVELS THE NORTHEAST SETTING UP STORES FOR A FOOD DISTRIBUTOR AND SPENDS A LOT OF TIME ON PUBLIC PHONES IT'S DISGUSTING WHEN YOU THINK ABOUT IT SAYS MR GOLDFARB WHO CLAIMS PUBLIC PHONE MOUTHPIECES ARE ALIVE WITH ARMIES OF MICROBES PLANNING AN ASSAULT ON YOUR LIPS HIS INFOMERCIAL IDEA IS SIMPLE A SHOT OF SOMEONE SNEEZING INTO A PAY PHONE THE CONTEST WINNER WILL BE ON TELEVISION THIS SUMMER BUT PLAN TO STAY UP IF YOU WANT TO SEE WHO IT IS THE INFOMERCIAL IS LIKELY TO AIR IN THE PREDAWN HOURS 9305210171 930521 INTERNATIONAL WORLD ECONOMY NEW AGENCY GIRDS TO FIGHT CORRUPTION WIDESPREAD IN INTERNATIONAL CONTRACTS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NINE NEW FRENCH RAILROAD LOCOMOTIVES WERE CLEARLY THE BEST IN ECUADOR BUT THERE WAS A PROBLEM THEY WERE MUCH TOO HEAVY FOR THE RAILROAD TRACK ANYWHERE IN THE COUNTRY BRIBERY HELPED GET THEM THERE SAYS ALBERTO DAHIK ECUADOR'S VICE PRESIDENT AND HE WANTS TO ENSURE THAT NEVER HAPPENS AGAIN SO HE HAS VOLUNTEERED ECUADOR AS A TEST CASE IN A NEW INTERNATIONAL EFFORT TO FIGHT THE CORRUPTION OFTEN FOUND WHEN POOR NATIONS BUY FROM RICH INDUSTRIAL STATES INCLUDING PURCHASES WITH FOREIGN AID AMONG OTHER REMEDIES HE SAYS WE WILL REQUIRE THE CHAIRMEN OR PRESIDENTS OF FOREIGN COMPANIES WHICH WANT TO DO BUSINESS HERE AND OUR OWN PEOPLE TO SIGN WRITTEN STATEMENTS PROMISING THERE WILL BE NO BRIBES IF SUCCESSFUL ECUADOR WOULD BE VICTORY NO 1 FOR A NEW NONGOVERNMENTAL ORGANIZATION CALLED TRANSPARENCY INTERNATIONAL FOUNDED IN BERLIN TWO WEEKS AGO AND MODELED LOOSELY AFTER THE RESPECTED HUMAN RIGHTS AGENCY AMNESTY INTERNATIONAL ITS SELFASSIGNED MISSION IS TO UPGRADE BUSINESS ETHICS IN THE DEVELOPING WORLD INCLUDING EASTERN EUROPE STARTING NEXT MONTH IT WILL HELP MR DAHIK DEVISE A CREDIBLE ANTICORRUPTION REGIME FOR ECUADOR THE GOAL IS MAKE IT AN ISLAND OF INTEGRITY AND A ROLE MODEL FOR OTHERS BY YEAR END TRANSPARENCY INTERNATIONAL HOPES TO HAVE TWO MORE PROJECTS UNDER WAY POSSIBILITIES INCLUDE BENIN BOLIVIA UGANDA AND BANGLADESH THE PHILIPPINES HAS ALSO SHOWN AN INTEREST MOST PEOPLE THINK ANYONE TRYING TO ATTACK CORRUPTION IS NAIVE A SPOILER UNREALISTIC CONCEDES PETER EIGEN ITS GERMAN CHAIRMAN AND FORMER DIRECTOR OF EAST AFRICAN PROGRAMS FOR THE WORLD BANK WELL I'M NONE OF THESE THINGS I'M A HARDNOSED MANAGER AND I THINK THE TIME IS RIGHT TO DO SOMETHING PRACTICABLE THE NEED EXISTS BIGTIME CORRUPTION HAS BECOME ALMOST UNIVERSAL IN MAJOR INTERNATIONAL CONTRACTS BETWEEN THE NORTH AND THE GREAT MAJORITY OF SOUTH COUNTRIES WRITES GEORGE MOODYSTUART AFTER MANY YEARS AS SENIOR EXECUTIVE FOR BRITISH AGROINDUSTRIAL COMPANIES IN AFRICA EXAMPLE A BUSINESS CONSULTANT SAYS AN INDIAN OFFICIAL ONCE PROMISED HIS US CLIENT THAT ITS FOUR CONTRACT BIDS WOULD WIN IF IT CONTRIBUTED TO THE PRIME MINISTER'S HEALTH AND WELFARE FUND FOR ORPHANS IN A LONDON BANK THE COMPANY DECLINED WHETHER THE FUND HAD ANY RELATIONSHIP TO INDIA'S PRIME MINISTER OR ORPHANS IS UNKNOWN BUT MORE THAN KICKBACKS ARE INVOLVED CORRUPTION ALSO CAN DISTORT DEVELOPMENT PROGRAMS IF WASTEFUL PROJECTS ARE APPROVED MAINLY FOR PAYOFF REASONS AFRICA FOR EXAMPLE IS LITTERED WITH SUCH INDUSTRIAL RUINS SAYS A FORMER EUROPEAN COMMUNITY AID OFFICIAL THIS IS ESPECIALLY TRUE WHEN COSTLY COMPLEX PURCHASES SUCH AS AIRCRAFT AND TELECOMMUNICATIONS PROVIDE THE USEFUL COVER OF MYSTIFICATION THE SOUTH IS LITTERED WITH GOODS WHICH WEREN'T NEEDED AND PROJECTS WHICH EVEN IF NEEDED HAVE BEEN SO BADLY EXECUTED THAT THEY ARE USELESS MR MOODYSTUART CONTENDS BUT COUNTERACTION NOW SEEMS POSSIBLE ANTIGRAFT SENTIMENT HAS SPREAD AND SOMETIMES BROUGHT REFORMERS TO POWER NOTABLY IN LATIN AMERICA BRAZIL IMPEACHED ITS PRESIDENT BUT ALSO IN AFRICA MULTIPARTY POLITICS A FREER NEWS MEDIA AND A NEW REVULSION AGAINST CORRUPT DICTATORS ALL HELP SO DOES THE COLD WAR'S DEMISE WESTERN DONORS ARE LESS TOLERANT OF OFFICIAL THIEVERY FOR THEY NO LONGER COMPETE WITH THE SOVIET UNION FOR POLITICAL INFLUENCE ONE SYMBOL A HIT PROTEST SONG IN ZIMBABWE IS CALLED CORRUPTION ENTER TRANSPARENCY INTERNATIONAL ITS FOUNDERS INCLUDE MANY AID SPECIALISTS OFTEN WITH WORLD BANK OR SIMILAR EXPERIENCE MR EIGEN IS A KEY FIGURE AFTER TWO YEARS OF TALKS AMONG LIKEMINDED REFORMERS DISGUSTED BY GREEDY THIRD WORLD OFFICIALS AND AVARICIOUS WESTERN BUSINESSMEN THEY ESTABLISHED THEIR NEW GROUP NOW THEY ARE SEEKING FUNDS AND REFINING THEIR PROGRAMS SEVERAL LENDING AGENCIES AND CORPORATIONS HAVE PROMISED HELP ECUADOR MAY SET THE STANDARD FOR ITS NEW GOVERNMENT SEEKS EXPERT ADVICE ONE EARLY TASK IS TO ENFORCE TIGHT RULES WHEN AWARDING CONTRACTS FOR A HYDROELECTRIC PROJECT COSTING SEVERAL HUNDRED MILLION DOLLARS VICE PRESIDENT DAHIK SAYS OTHERS WILL INVOLVE ECUADOR AS SELLER THE COUNTRY WANTS HONEST BIDS WHEN IT PRIVATIZES SEVERAL STATE COMPANIES A FEW U S COMPANIES ARE SUPPORTIVE FRITZ HEIMANN AN ATTORNEY FOR GENERAL ELECTRIC CO SAYS AMERICANS HAVE BEEN AT A COMPETITIVE DISADVANTAGE SINCE THE 1977 FOREIGN CORRUPT PRACTICES ACT OUTLAWED BRIBES INCLUDING THOSE PAID VIA SHADY MIDDLEMEN FOR MOST EC COMPANIES THESE ARE TAX DEDUCTIONS MR HEIMANN AND JOHN IMPERT A BOEING CO LAWYER WHO ALSO ATTENDED TRANSPARENCY INTERNATIONAL'S FOUNDING MEETING IN BERLIN WOULD LIKE SIMILAR LAWS IN EUROPE BUT THE NEW GROUP WILL GO SLOW ON THAT ONE IT DOESN'T WANT TO DETER ALREADY SKITTISH EUROPEAN COMPANIES EARLY OVERTURES IN JAPAN HAVE BEEN REBUFFED COMPANIES THERE AREN'T EAGER TO HALT BRIBERY YET THE GROUP HOPES TO FORM COALITIONS OF LOCAL GOVERNMENTS AID DONORS AND PRIVATE COMPANIES THAT WILL APPLY ANTIGRAFT RULES IN SPECIFIC COUNTRIES A FEW SUCH ISLANDS WOULD MAKE TRANSPARENCY INTERNATIONAL A FOCUSED DOGOODER THAT GETS RESULTS 9305210170 930521 WHO'S NEWS AMERICAN FEDERAL BANK AMERICAN FEDERAL BANK GREENVILLE SC WILLIAM L ABERCROMBIE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BANKING COMPANY WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR ABERCROMBIE 45 YEARS OLD SUCCEEDS WILLIAM R MERRITT WHO IS RETIRING AT AGE 70 9305210169 930521 ENEX BOARD CLEARS STOCK BUY KINGWOOD TEXAS ENEX RESOURCES CORP SAID ITS BOARD HAS APPROVED THE PURCHASE OF UP TO 50000 SHARES OF THE COMPANY'S COMMON STOCK THE COMPANY HAS 12 MILLION SHARES OUTSTANDING A PORTION OF THE SHARES WILL BE ACQUIRED THROUGH A TENDER OFFER TO HOLDERS OF 99 OR FEWER SHARES AT 9 A SHARE THE OIL AND GAS COMPANY SAID IT'S BUYING THE SHARES BECAUSE IT BELIEVES ITS SHARE PRICE IS UNDERVALUED IN LATE OVERTHECOUNTER TRADING YESTERDAY ENEX SHARES WERE QUOTED AT 825 UP 25 CENTS 9305210168 930521 WHO'S NEWS MERCURY AIR GROUP INC MERCURY AIR GROUP INC LOS ANGELES WILLIAM G LANGTON WAS ELECTED A DIRECTOR INCREASING THE BOARD TO FIVE MEMBERS MR LANGTON 47 YEARS OLD IS PRESIDENT AND CHIEF OPERATING OFFICER OF SOUTHERN AIR TRANSPORT MIAMI MERCURY AIR IS AN AVIATION SERVICES CONCERN 9305210167 930521 WHO'S NEWS AMERICAN EXPRESS CO AMERICAN EXPRESS CO NEW YORK LOUISE M PARENT 42 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL AND A MEMBER OF THE CORPORATE PLANNING AND POLICY COMMITTEE SHE SUCCEEDS GARY A BELLER 54 EXECUTIVE VICE PRESIDENT WHO WILL TAKE ON THE ADDITIONAL RESPONSIBILITY FOR MANAGING THE COMPANY'S REAL ESTATE INVESTMENTS AND WORLDWIDE PURCHASING WHILE CONTINUING TO SERVE ON THE PLANNING AND POLICY COMMITTEE MS PARENT IS THE HIGHESTRANKING FEMALE OFFICER AND THE FIRST FEMALE GENERAL COUNSEL AT AMERICAN EXPRESS THE TRAVEL AND FINANCIAL SERVICES COMPANY SHE JOINED AMERICAN EXPRESS AS AN ATTORNEY IN 1977 AND IN 1989 BECAME GENERAL COUNSEL FOR FIRST DATA CORP THE FORMER INFORMATIONSERVICES SUBSIDIARY SINCE 1992 SHE HAS BEEN DEPUTY GENERAL COUNSEL AT AMERICAN EXPRESS 9305210165 930521 WHO'S NEWS PHARMACEUTICAL RESOURCES INC PHARMACEUTICAL RESOURCES INC SPRING VALLEY NY ROBERT I EDINGER 52 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE GENERIC PHARMACEUTICAL DRUG COMPANY HE SUCCEEDS RICHARD NADLER WHO LEFT THE COMPANY FROM 1983 TO 1989 MR EDINGER WAS PRESIDENT AND CHIEF FINANCIAL OFFICER OF WHOLESALE DRUG COMPANY KETCHUM & CO AND MORE RECENTLY HAD BEEN EXECUTIVE VICE PRESIDENT OF BONJOUR GROUP LTD A CLOSELY HELD INTERNATIONAL LICENSING COMPANY 9305210164 930521 WHO'S NEWS SONY'S MORITA TO HEAD COUNCIL TOKYO KYODO AKIO MORITA CHAIRMAN OF SONY CORP WILL BE APPOINTED CHAIRMAN OF THE JAPANUS BUSINESS COUNCIL SUCCEEDING EISHIRO SAITO PRESIDENT OF NIPPON STEEL CORP THE OFFICIAL APPOINTMENT WILL BE MADE AT A GENERAL MEETING TO BE HELD JUNE 18 MR MORITA WILL HEAD THE ANNUAL JAPANUS BUSINESS CONFERENCE 9305210163 930521 WHO'S NEWS MARSH & MCLENNAN COS MARSH & MCLENNAN COS NEW YORK GHC WAKEFIELD 54 YEARS OLD WAS NAMED PRESIDENT OF GUY CARPENTER & CO A REINSURANCE INTERMEDIARY AND SUBSIDIARY OF THIS INSURANCE BROKERAGE AND CONSULTING COMPANY HE SUCCEEDS RICHARD H BLUM WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE UNIT MR WAKEFIELD HAD BEEN DEPUTY CHAIRMAN OF GUY CARPENTER AND CHAIRMAN OF CARPENTER BOWRING LTD LONDON ANOTHER MARSH REINSURANCE ENTITY 9305210162 930521 STATES MAY PAY COST OVERRUNS OF HEALTH PLAN CLINTON LIKELY TO REQUIRE THEM TO SHARE BURDEN OF ENFORCING BUDGET BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS LIKELY TO MAKE STATES PICK UP PART OF THE TAB IF THEY EXCEED A FEDERALLY SET HEALTHCARE BUDGET THE ADMINISTRATION HAS BEEN LOOKING FOR WAYS TO SET A NATIONAL BUDGET FOR HEALTH EXPENDITURES COMMONLY REFERRED TO AS A GLOBAL BUDGET OFFICIALS HAVE SAID THAT THE STATES WOULD LIKELY BE RESPONSIBLE FOR ENFORCING SUCH A BUDGET IN FACT DOCUMENTS FROM THE WHITE HOUSE HEALTHCARE TASK FORCE INDICATE THAT THE BUDGET MAY TAKE THE FORM OF A STATEBYSTATE CAP ON THE AVERAGE ANNUAL INCREASE IN HEALTH INSURANCE PREMIUMS BUT IF A STATE RUNS OVER THE PREMIUM TARGET ONE BIG QUESTION IS WHO SHOULD PICK UP THE ADDITIONAL SUBSIDIES THE FEDERAL GOVERNMENT HAS PROMISED TO PROVIDE TO POOR PEOPLE AND SMALL BUSINESSES IF THE TARGET IS EXCEEDED ADMINISTRATION OFFICIALS SAID MORE PEOPLE AND FIRMS WOULD QUALIFY FOR FEDERAL FINANCIAL ASSISTANCE TO HELP PAY FOR THEIR HEALTH COVERAGE ADMINISTRATION OFFICIALS SAID THAT THE STATES WOULD PROBABLY HAVE TO PAY SOME OF THE COSTS BECAUSE THE STATES WOULD OVERSEE THE BUDGET THE PORTION HASN'T BEEN DECIDED HOWEVER EVERYTHING IS ON THE TABLE SAID ONE ADMINISTRATION HEALTH OFFICIAL HOW THE FEDERALSTATE SPLIT TURNS OUT IS LIKELY TO DETERMINE THE EXTENT OF THE SUPPORT OF THE NATION'S GOVERNORS SOME ARE ALREADY APPREHENSIVE WE ARE VERY LEERY AT THE STATE LEVEL BECAUSE OF THE LONG AND DIFFICULT EXPERIENCE WE'VE HAD WITH WASHINGTON TRYING TO SHIFT COSTS TO THE STATES SAID DEMOCRATIC GOV ROBERT CASEY OF PENNSYLVANIA THE ISSUE OF WHO SHOULD BE RESPONSIBLE FOR BUDGET OVERRUNS HAS BEEN CONTENTIOUS IN MEETINGS WITH ADMINISTRATION OFFICIALS GOVERNORS HAVE INSISTED THE FEDERAL GOVERNMENT SHARE AT LEAST SOME OF THE BURDEN DOCUMENTS SHOW THAT THE ADMINISTRATION AT ONE POINT CONSIDERED REQUIRING STATES TO FINANCE THE ENTIRE COST OF THE ADDITIONAL SUBSIDIES BUT OFFICIALS SUGGESTED THEY HAVE SINCE BACKED AWAY FROM THAT IDEA ADMINISTRATION OFFICIALS INDICATE THAT ESPECIALLY DURING THE EARLY YEARS OF A CLINTON HEALTH SYSTEM THEY ARE INCLINED TO GIVE STATES MORE SLACK BUT AS TIME GOES ON THEY PROBABLY WOULD REQUIRE STATES TO BE INCREASINGLY RESPONSIBLE FOR PAYING FOR OVERRUNS GOV CASEY SAID HE WANTS TO ENSURE THAT THE FORMULA FOR DETERMINING IF A STATE HAS OVERRUN ITS BUDGET IS BASED ON REASONABLE ASSUMPTIONS HE SAID HE IS CONCERNED THAT HEALTH COSTS MAY RISE FOR REASONS UNRELATED TO THE STATE'S EFFORT TO CONTROL THEM MEANWHILE PRESIDENT CLINTON WAS SET TO MEET WITH SOME OF HIS TOP ADVISERS LAST NIGHT ON HEALTH CARE AIDES SAID THE PRESIDENT IS BEGINNING TO DECIDE WHAT SHOULD BE INCLUDED IN HIS HEALTHCARE PACKAGE AND HOW TO FINANCE IT WE ARE NOW IN THE MIDST OF AN INTENSIVE DECISION MAKING PROCESS JUDITH FEDER A SENIOR ADMINISTRATION OFFICIAL TOLD A HEALTHPOLICY CONFERENCE YESTERDAY ALSO YESTERDAY LAURA TYSON THE CHAIRWOMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MADE THE CASE FOR A NEW HEALTHCARE SYSTEM TESTIFYING BEFORE THE SENATE LABOR COMMITTEE SHE URGED PEOPLE NOT TO FOCUS JUST ON THE COSTS OF REFORM BUT TO CONSIDER THE IMPACT OF DOING NOTHING THE COSTS OF THE CURRENT SYSTEM SHE ASSERTED ARE HOLDING DOWN AMERICANS' WAGES ARE THREATENING IF NOT UNDERMINING OUR EFFORTS TO REDUCE THE DEFICIT AND ARE LIMITING THE FLEXIBILITY OF THE ECONOMY TO BE COMPETITIVE HER COMMENTS CAME AS THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHICH REPRESENTS HUNDREDS OF THOUSANDS OF SMALLER FIRMS ISSUED A STUDY WARNING THAT HEALTHCARE REFORM IS LIKELY TO PUT MILLIONS OF JOBS AT RISK THE STUDY CONCLUDED THAT ANY PLAN MANDATING ALL EMPLOYERS CONTRIBUTE TO THEIR WORKERS' HEALTH COVERAGE AS THE CLINTON PROPOSAL IS SURE TO DO WOULD HAVE A NEGATIVE EFFECT ON EMPLOYMENT THE STUDY WAS CONDUCTED FOR THE BUSINESS FEDERATION BY CONSAD RESEARCH CORP 9305210161 930521 CREDIT MARKETS TREASURY PRICES DROP AS FED NEWS OF BIG JUMP IN MONEY SUPPLY STIRS WORRIES ABOUT INFLATION BY THOMAS D LAURICELLA STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AN OTHERWISE QUIET SESSION IN THE US TREASURY MARKET YESTERDAY ENDED ON A SOUR NOTE AS PRICES DROPPED MODERATELY LOWER IN RESPONSE TO UNEXPECTEDLY BEARISH NEWS FROM THE FEDERAL RESERVE THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 101 18/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE ROSE TO 699 FROM 697 ON WEDNESDAY THE 10YEAR NOTE DROPPED NEARLY 1/4 POINT TO 101 2/32 TO YIELD 609 UP FROM 606 PRICES DROPPED LOWER LATE IN YESTERDAY'S TRADING AS THE FED'S WEEKLY MONEY SUPPLY DATA SHOWED GREATERTHANEXPECTED STRENGTH THE FED REPORTED ITS WIDELY WATCHED M2 AGGREGATE SURGED 201 BILLION IN THE WEEK ENDED MAY 10 THAT FOLLOWED RIGHT ON THE HEELS OF A SOLID 132 BILLION JUMP FOR THE PRIOR WEEK THAT PUTS M2 GROWTH RATE AT 03 FROM THE FOURTH QUARTER BASE OF LAST YEAR WHICH IS STILL FAR BELOW THE FED'S TARGET OF 2 TO 6 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 WEAK MONEY SUPPLY GROWTH HAS BEEN ONE OF THE FACTORS CITED BY CERTAIN FED OFFICIALS FOR KEEPING MONETARY POLICY UNCHANGED THE THREAT OF FASTER MONEY GROWTH WHICH HAS INFLATIONARY IMPLICATIONS COMES AS THE MARKET HAS ALREADY BEEN RATTLED BY A NUMBER OF INFLATION SCARES WHILE TRADERS PUSHED TREASURYS LOWER IN THIN LATE TRADING ANALYSTS DOWNPLAYED THE INCREASE THERE WAS A NEGATIVE REACTION TO THE SURPRISINGLY LARGE JUMP IN THE MONETARY AGGREGATES A JUMP THAT'S PROBABLY RELATED TO THE VAGARIES OF THE SEASONAL ADJUSTMENT PROCESS SAID JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO MR LIRO SAID THE MARKET SHOULD BE CAREFUL ABOUT DRAWING ANY CONCLUSIONS ABOUT THE IMPACT ON FED POLICY OF TWO WEEKS' MONEY SUPPLY DATA DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC NOTED THAT THE CONNECTION BETWEEN MONEY SUPPLY AND ECONOMIC GROWTH FADED SOME TIME AGO THE FACT IS MONEY HAS BEEN A VERY POOR INDICATOR MR FINE SAID THIS WAS A KNEEJERK REACTION TO A NUMBER THE FED HASN'T GIVEN CREDENCE TO IN QUITE A WHILE BEFORE THE MONEY SUPPLY DATA TREASURYS HAD GYRATED IN RELATIVE NARROW RANGES EARLY IN THE DAY DEALERS REPORTED SOME INVESTOR INTEREST IN SHORTER SECURITIES HELPED BY NEWS DEPICTING ECONOMIC WEAKNESS THE PHILADELPHIA FEDERAL RESERVE REPORTED ITS BUSINESS OUTLOOK SURVEY INDEX SLIPPED TO 113 IN MAY FROM 246 IN APRIL HOWEVER THE BUYING PROVED SHORTLIVED DRYING UP BY EARLY AFTERNOON DISCOURAGING INVESTORS WAS A RENEWED RISE IN COMMODITIES PRICES AND A GROWING SENSE OF UNEASE ABOUT PRESIDENT CLINTON'S ABILITY TO REDUCE THE BUDGET DEFICIT EVERYTHING WAS QUIET HOLDING AT EARLIER LEVELS AND THEN WE STARTED HEARING THE SQUABBLING GOING ON IN WASHINGTON SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC PARTICIPANTS FOCUSED ON THE CONTINUING BATTLES THAT THE PRESIDENT IS HAVING WITHIN HIS OWN DEMOCRATIC PARTY WONDERING IF THE PRESIDENT WILL HAVE THE CLOUT TO PUSH HIS PLAN THROUGH CONGRESS COMMENTS FROM TREASURY SECRETARY LLOYD BENTSEN ARGUING THAT THE FAILURE OF CONGRESS TO PASS THE PRESIDENT'S PLAN WOULD RAISE RATES ONLY ADDED TO THE MARKET'S SOURING TONE TRADERS ALSO EYED AN ALTERNATIVE BUDGET PLAN BEING PUSHED IN THE SENATE THAT WOULD KILL THE PROPOSED ENERGY TAX AND MAKE DEEPERTHANPLANNED CUTS IN SOCIAL PROGRAMS WHILE SOME IN THE MARKET TOOK A NEGATIVE VIEW TOWARD TURMOIL SURROUNDING THE ALTERNATIVE PLAN SPONSORED BY SEN DAVID BOREN D OKLA ONE ANALYST SAID THE MARKET SHOULD NOT BE COMPLETELY DISMAYED IN OUR MIND THE BOREN PLAN IS ACTUALLY QUITE CONSTRUCTIVE FOR THE BOND MARKET SAID WILLIAM V SULLIVAN JR DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC MR SULLIVAN ARGUED THAT THE LACK OF THE POTENTIALLY INFLATIONARY ASPECTS OF THE ENERGY TAX COUPLED WITH LESS SPENDING SHOULD BE SEEN AS A POSITIVE FOR BONDS ABOUT 18 BILLION OF NEW CORPORATE DEBT WAS OFFERED YESTERDAY NEARLY HALF IN A QUICK BURST OF ACTIVITY LATE IN THE DAY AS INTERMEDIATE AND LONGTERM INTEREST RATES REACHED SESSION HIGHS OFFERINGS QUICKLY APPEARED BY A NUMBER OF WELLKNOWN COMPANIES INCLUDING CHEMICAL BANKING CORP NEWS AMERICA HOLDINGS INC THE NEWS CORP UNIT LONG ISLAND LIGHTING CO AND HELLER FINANCIAL INC THE LATESESSION BORROWING SPREE FOLLOWED PRICINGS BY FLORIDA POWER & LIGHT CO A UNIT OF FPL GROUP AND A TRIO OF QUICKLY BOUGHT HIGHYIELD OFFERINGS IN SECONDARY MARKET ACTIVITY MOST INVESTMENTGRADE ISSUES ENDED FLAT TO 1/8 POINT LOWER THE JUNK BOND MARKET ENDED LITTLE CHANGED WITH INVESTORS FOCUSED ON ISSUES IN THE PIPELINE UNTIL YESTERDAY CONDITIONS HAD PROMPTED BORROWERS TO REMAIN ON THE SIDELINES UNTIL THE DIRECTION OF INTEREST RATES BECAME CLEARER BUT YESTERDAY'S ISSUANCE BLITZ APPEARS TO SIGNAL A NEW FEELING AMONG ISSUERS THAT INTEREST RATES HAVE INDEED TOUCHED BOTTOM LONG ISLAND LIGHTING'S NEW ISSUE WAS PARTICULARLY NOTABLE FOR CHEMICAL SECURITIES INC'S PARTICIPATION AS A COMANAGER MARKING THE CHEMICAL BANKING SUBSIDIARY'S FIRST PUBLIC CORPORATE BOND OFFERING SINCE RECEIVING THE AUTHORITY TUESDAY TO UNDERWRITE CORPORATE DEBT ISSUES SEPARATELY CHEMICAL BANKING OFFERED 200 MILLION OF SUBORDINATED NOTES MOODY'S INVESTORS SERVICE INC SAID YESTERDAY THAT IT HAS ASSIGNED RATINGS FOR THE FIRST TIME TO SEVEN PESODENOMINATED LONGTERM MEXICAN DEVELOPMENT BONDS AND SHORTTERM TREASURY BILLS MOODY'S GAVE THE DEVELOPMENT BONDS WHICH MATURE IN 1995 AN INVESTMENTGRADE RATING OF BAA1 TWO NOTCHES ABOVE MOODY'S LOWEST INVESTMENTGRADE RATING OF BAA3 MOODY'S RATED THE MEXICAN TREASURY BILLS PRIME2 ITS SECONDHIGHEST RATING FOR SHORTTERM DEBT TRADERS SAID THE RATING CHANGE HAD LITTLE EFFECT ON PRICES YESTERDAY BECAUSE STANDARD & POOR'S CORP ALSO CARRIES AN INVESTMENTGRADE RATING FOR SIMILAR MEXICAN DEBT INSTRUMENTS MUNICIPAL BOND PRICES DRIFTED YESTERDAY AND FINISHED NARROWLY MIXED CHICAGO'S O'HARE INTERNATIONAL AIRPORT 560 REVENUE REFUNDING BONDS MATURING IN 2014 CLOSED UNCHANGED AT 95 FOR A YIELD OF 594 THOSE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S 570 NUCLEAR PROJECT NO 1 REVENUE REFUNDING BONDS MATURING IN 2017 WERE FREED TO TRADE BY A GOLDMAN SACHS & CO GROUP THEY FINISHED YESTERDAY AT 96 1/4 TO YIELD 599 UP FROM 597 WHEN THE BONDS WERE PRICED ON TUESDAY IN THE PRIMARY MARKET YESTERDAY ACTIVITY REMAINED RATHER BRISK THE LARGEST OF THE DAY'S NEW ISSUES WAS THE METROPOLITAN GOVERNMENT OF NASHVILLE & DAVIDSON COUNTY TENN'S 3197 MILLION OF GENERAL OBLIGATION REFUNDING BONDS OF 1993 THEY WERE PRICED BY A GROUP LED BY NASHVILLEBASED JC BRADFORD & CO AND GIVEN YIELDS THAT RANGED FROM 275 FOR NOTES MATURING IN 1994 TO 550 FOR NOTES MATURING 2008 BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP HAVE RATED THE ISSUE DOUBLEA PRICES OF MORTGAGE SECURITIES ENDED HIGHER SEVEN PERCENT MORTGAGE SECURITIES FOR JUNE DELIVERY ALL ENDED 1/4 HIGHER WITH GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES AT 100 8/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES AT 100 21/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES AT 100 15/32 A SHORTAGE OF NEW MORTGAGE LOANS COMING INTO THE MARKET TO MAKE MORTGAGE SECURITIES IS STILL A CONCERN FOR SOME PARTICIPANTS BUT OTHERS HAVE SAID SUPPLY IS SLOWLY BECOMING AVAILABLE IN THE PRIMARY MARKET MORE THAN 18 BILLION OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES AND OTHER DERIVATIVES WERE BROUGHT OUT WHILE AN OFFERING OF CASE CORP AGRICULTURAL LOAN CERTIFICATES WAS WELL RECEIVED THE ENTHUSIASM FOR THE CASE DEAL REFLECTED INVESTOR ACCEPTANCE OF THIS STILLNEW TYPE OF ASSETBACKED BOND DEALERS SAY THE 277 MILLION A2 CLASS OF THE 421 MILLION OFFERING CASE'S SECOND ASSETBACKED DEAL WAS PRICED TO YIELD 048 PERCENTAGE POINT ABOVE THE TREASURY TWOYEAR NOTE ACCORDING TO DEALERS AND INVESTORS THE THREEPART OFFERING WHICH INCLUDES A 1262 MILLION CLASS OF SECURITIES TARGETED TO MONEY MARKET FUNDS IS BEING LED BY MERRILL LYNCH & CO MERRILL HASN'T RELEASED PRICING DETAILS NEW ISSUANCE INCLUDED TWO FANNIE MAE REMICS TOTALING 600 MILLION THREE FANNIE MAE STRIPS TRUSTS TOTALING 396 MILLION AND TWO FREDDIE MAC REMICS TOTALING 850 MILLION CRAIG TORRES CONTRIBUTED TO THIS ARTICLE 9305210160 930521 ECONOMY INITIAL JOBLESS CLAIMS ROSE IN LATEST WEEK WASHINGTON INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE IN THE WEEK ENDED MAY 15 AFTER THREE WEEKS OF DECLINE THE 7000 INCREASE IN CLAIMS TO 344000 DOESN'T NECESSARILY MEAN THE LABOR MARKET IS GETTING WORSE ANALYSTS SAID THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS A BETTER MEASURE OF LABOR MARKET TRENDS FELL 3000 TO 342250 DURING THE REPORTING WEEK THE LARGEST INCREASES IN CLAIMS WERE REPORTED IN CALIFORNIA MICHIGAN AND ALABAMA THE LARGEST DROP CAME IN TEXAS ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9305210159 930521 DIVIDEND NEWS MORGAN KEEGAN INC MORGAN KEEGAN INC A BROKERAGE AND INVESTMENT BANKING FIRM SAID ITS BOARD APPROVED A 3FOR2 STOCK SPLIT PAYABLE JUNE 11 TO SHARES OF RECORD JUNE 3 THE SPLIT WILL INCREASE THE NUMBER OF SHARES OUTSTANDING TO 143 MILLION FROM 95 MILLION THE MEMPHIS TENN COMPANY SAID 9305210158 930521 GRAND JURY INDICTS MAN FOR FALSE CLAIM AGAINST CAMPBELL SOUP CAMDEN NJ A RETIRED OKLAHAMA TRUCK DRIVER WAS INDICTED YESTERDAY BY A FEDERAL GRAND JURY FOR FALSELY CLAIMING HE ATE A CAN OF CAMPBELL'S SOUP THAT WAS CONTAMINATED WITH GLASS DONALD DUWAYNE BRANTLEY SR 53 YEARS OLD OF ADA OKLA WAS CHARGED WITH MAIL AND WIRE FRAUD IN ATTEMPTING TO DEFRAUD CAMPBELL SOUP CO US ATTORNEY MICHAEL CHERTOFF SAID THE INDICTMENT CHARGES HIM WITH FALSELY CLAIMING HE SUFFERED INTERNAL INJURIES AND STRESS AFTER EATING CAMPBELL'S SOUP HE FACES A MAXIMUM OF 10 YEARS IN PRISON AND 500000 IN FINES MR BRANTLEY HOWEVER CLAIMED IN AN INTERVIEW THAT HE FOUND BLOOD IN HIS BOWEL MOVEMENTS SHORTLY BEFORE A CAMPBELL'S RECALL LAST DECEMBER THE CAMDEN NJ COMPANY RECALLED SOME OF ITS FROZEN DINNERS AND CANNED SOUPS BECAUSE OF GLASS PARTICLES FOUND IN RICE USED IN THE PRODUCTS MR BRANTLEY WHO SAYS HE'S BEEN A REGULAR CONSUMER OF CAMPBELL'S CHICKENANDRICE SOUP ALSO SAID HE DIDN'T KNOW HE MIGHT BE BREAKING THE LAW WHEN HE ASKED THE CAMDEN NJ COMPANY FOR 10000 TO SETTLE HIS CLAIMS AND WHEN HE THREATENED TO RETALIATE A CAMPBELL SPOKESMAN DECLINED COMMENT ON THE INDICTMENT 9305210157 930521 WHO'S NEWS PRODIGY SERVICES CO PRODIGY SERVICES CO WHITE PLAINS NY SCOTT KURNIT 39 YEARS OLD A TELEVISION PROGRAMMING EXECUTIVE WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT CONSUMER PRODUCTS MARKETING AND DEVELOPMENT MR KURNIT PREVIOUSLY HAS BEEN PRESIDENT OF SHOWTIME EVENT TELEVISION A UNIT OF VIACOM INC THAT PROVIDES PAYPERVIEW PROGRAMS PRODIGY SERVICES IS A COMPUTER NETWORK PARTNERSHIP OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO 9305210156 930521 WHO'S NEWS PHYSICIANS INSURANCE CO OF OHIO PHYSICIANS INSURANCE CO OF OHIO PICKERINGTON OHIO JOHN E ALBERS CHAIRMAN OF THE BOARD OF THIS MEDICAL LIABILITY INSURANCE PROVIDER WAS NAMED TO THE ADDITIONAL POSTS OF PRESIDENT AND CHIEF EXECUTIVE OFFICER DR ALBERS 66 YEARS OLD HAS BEEN SERVING AS THE COMPANY'S ACTING CHIEF EXECUTIVE OFFICER FOR THE PAST THREE MONTHS IN LATE FEBRUARY ROBERT L DION THE COMPANY'S FORMER PRESIDENT AND CHIEF EXECUTIVE WAS DEMOTED TO CHIEF OPERATING OFFICER THE COMPANY DECLINED TO GIVE A REASON FOR THIS ACTION MR DION LEFT THE COMPANY LAST MONTH AFTER ITS BOARD IN LATE MARCH VOTED TO ELIMINATE THE CHIEF OPERATING OFFICER POST 9305210155 930521 GM SAYS IT WILL IDLE SOME PLANTS FOR WEEK DETROIT GENERAL MOTORS CORP SAID SLOW SALES WILL FORCE IT TO IDLE FOR ONE WEEK ITS ASSEMBLY PLANTS IN SCARBOROUGH ONTARIO AND ORION TOWNSHIP MICH GM FORD MOTOR CO AND CHRYSLER CORP ALL PLANNED OVERTIME THIS WEEK AND NEXT WEEK AT A MAJORITY OF THEIR US AND CANADIAN CAR AND TRUCK ASSEMBLY PLANTS MOST OF THE BIG THREE'S ASSEMBLY PLANTS IN CANADA WILL NOT OPERATE TODAY OR MONDAY BECAUSE OF THE VICTORIA DAY HOLIDAY ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD 230732 TOTAL VEHICLES THIS WEEK UP 256 FROM 183745 VEHICLES BUILT IN THE YEAREARLIER PERIOD 9305210154 930521 LETTERS TO THE EDITOR SALLIE MAE HAD MOXIE YOUR MARCH 9 ARTICLE ON SALLIE MAE STATES THAT THE COMPANY WAS SET UP BY THE GOVERNMENT WITH 25 MILLION IN 1972 NOT TRUE WHILE THERE WAS A PROVISION IN SALLIE MAE'S CHARTER TO MAKE STARTUP FUNDS AVAILABLE FROM THE FEDERAL GOVERNMENT THE CORPORATION INSTEAD CHOSE TO TAKE OUT A BANK LINE OF CREDIT 9305210153 930521 HUTCHISON CHAIRMAN SAYS CHEUNG BOUGHT SHARES SEEKS MORE HONG KONG LI KASHING CHAIRMAN OF HUTCHISON WHAMPOA LTD IS SO BULLISH ON THE COMPANY THAT HE'S BUYING ITS STOCK AT LEAST THAT'S THE IMPRESSION THE HONG KONG BILLIONAIRE GAVE AT THE COMPANY'S ANNUAL MEETING THURSDAY ENDING A BEVY OF MARKET SPECULATION THIS WEEK MR LI SAID CHEUNG KONG HOLDINGS LTD OF WHICH HE OWNS ABOUT 35 HAS BEEN A HEAVY BUYER OF HUTCHISON SHARES RECENTLY HE ADDED THAT CHEUNG KONG IS INTENT ON RAISING ITS STAKE IN HUTCHISON TO 42 NEAR THE LEVEL IT HELD BEFORE ITS OWNERSHIP WAS DILUTED TO JUST OVER 39 BY WARRANT CONVERSIONS EARLIER THIS YEAR CHEUNG KONG BOUGHT ABOUT HALF OF THE 47 MILLION HUTCHISON SHARES THAT CHANGED HANDS ON WEDNESDAY ALONE MR LI SAID IN HONG KONG TRADING THURSDAY HUTCHISON SHARES ENDED AT HK2020 US261 UP 20 HONG KONG CENTS WHILE CHEUNG KONG SHARES GAINED 30 CENTS TO HK2740 MR LI'S COMMENTS FOLLOWED AN UPBEAT PRESENTATION TO SHAREHOLDERS IN WHICH HE SAID HUTCHISON'S INVESTMENT IN CANADA'S HUSKY OIL LTD IS LIKELY TO CONTRIBUTE TO HUTCHISON'S BOTTOM LINE FOR THE FIRST TIME IN YEARS THIS YEAR WILL BE BETTER I'M SURE HUSKY OIL WILL HAVE A PROFIT SAID MR LI THAT'S GOOD NEWS FOR HUTCHISON'S SHAREHOLDERS WHO HAVE WATCHED THE COMPANY'S PROFIT SLIP DURING THE PAST TWO YEARS UNDER THE WEIGHT OF WRITEOFFS RELATED TO HUSKY OIL RAVI NARAIN RESEARCH DIRECTOR AT PEREGRINE BROKERAGE LTD SAYS HE EXPECTS HUSKY OIL TO EARN 80 MILLION CANADIAN DOLLARS US632 MILLION THIS YEAR HUTCHISON OWNS 49 OF THE COMPANY THAT'S A DRAMATIC TURNAROUND IN TERMS OF CONTRIBUTION TO HUTCHISON SAID MR NARAIN WHO ADDED THAT THE COMPANY'S ONLY REMAINING WEAK SPOT IS ITS HUTCHISON TELECOMMUNICATIONS UK LTD OPERATIONS WHICH REMAIN MIRED IN STARTUP COSTS RELATED TO A NEW TECHNOLOGY CALLED PERSONAL COMMUNICATIONS NETWORK MR LI CONCEDED THURSDAY THAT THE UK OPERATIONS REMAIN VERY DISAPPOINTING THE RESULTS ARE NOT AS GOOD AS WE WOULD WISH HE SAID BUT ADDED THAT HUTCHISON REMAINS COMMITTED TO WHAT HE CONSIDERS A LONGTERM INVESTMENT ANALYSTS SAY HUTCHISON'S ENTIRE TELECOMMUNICATIONS DIVISION OF WHICH THE UK COMPANY IS A PART HAS NEVER BEEN CRITICAL TO THE COMPANY'S BOTTOM LINE AT ITS PEAK ANALYSTS SAY THE DIVISION CONTRIBUTED ONLY ABOUT HK270 MILLION US349 MILLION TO PROFIT THAT HAS BEEN CONSISTENTLY ABOVE HK3 BILLION IN RECENT YEARS HUTCHISON EARNED HK317 BILLION IN 1992 9305210152 930521 PEPPERAND SALT TO USE THE STAIRCLIMBING MACHINE I GUESS I ALWAYS KNEW IT TO EARN ENOUGH TO DO IT JUNK MAIL LITTERATURE 9305210151 930521 NASD MOVES TO DISCIPLINE FIRMS BROKERS SUSPENSIONS AND FINES STEM FROM BREACHES OF LAWS SECURITIES REGULATIONS BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ANNOUNCED DISCIPLINARY ACTIONS AGAINST A NUMBER OF FIRMS AND INDIVIDUALS FOR VIOLATIONS OF SECURITIES LAWS AND NASD REGULATIONS UNLESS INDICATED NONE OF THE FIRMS OR INDIVIDUALS DISCIPLINED COULD BE REACHED OR HAD ANY COMMENT THE DEFUNCT FIRST CHOICE SECURITIES CORP ENGLEWOOD COLO WAS FINED 200000 AND EXPELLED FROM MEMBERSHIP IN THE NASD IN ADDITION PRINCIPAL GREGORY F WALSH LOS ANGELES WAS FINED 25000 AND SUSPENDED FOR TWO YEARS DEREK H YAMADA DENVER A PRINCIPAL WAS FINED 50000 AND BARRED THE NASD SAID THE FIRM FAILED TO MAINTAIN MINIMUM REQUIRED NET CAPITAL AMONG OTHER VIOLATIONS IT ALSO SAID THE FIRM AND THE TWO MEN IMPROPERLY HANDLED AN OFFERING OF LIMITED PARTNERSHIP INTERESTS IN A SEPARATE PROCEEDING FIRST CHOICE AND PRINCIPAL SHELDON O FERTMAN DENVER WERE FINED 114088 JOINTLY AND SEVERALLY MEANING EACH IS RESPONSIBLE FOR THE AMOUNT AND THE FIRM WAS SUSPENDED FROM PRINCIPAL TRANSACTIONS FOR 60 DAYS MR FERTMAN WAS BARRED THE NASD SAID HE SOLD SECURITIES TO CUSTOMERS AT UNFAIR AND UNREASONABLE PRICES SMITH BELLINGHAM INTERNATIONAL INC SAN FRANCISCO AND PRINCIPAL MICHAEL WILLIAM MEAGHER MILL VALLEY CALIF WERE FINED 9200 JOINTLY AND SEVERALLY THEY ALSO WERE FINED 15000 JOINTLY AND SEVERALLY WITH ANOTHER BROKER AND THE FIRM WAS FINED AN ADDITIONAL 35000 EXPELLED FROM THE NASD AND FINED 20000 JOINTLY AND SEVERALLY WITH ANOTHER BROKER MR MEAGHER ALSO WAS FINED 35000 AND BARRED THE NASD SAID THE FIRM AND MR MEAGHER AMONG OTHER VIOLATIONS SOLD CONVERTIBLE NOTE UNITS WITH FALSE AND MISLEADING STATEMENTS AND PERMITTED AN INDIVIDUAL TO ACT AS A REPRESENTATIVE OF THE FIRM WITHOUT PROPER REGISTRATION AIMCO SECURITIES CO SAN DIEGO WAS FINED 20000 PRINCIPAL MARVIN IRWIN FRIEDMAN LA JOLLA CALIF WAS FINED 20000 AND BARRED IN ANY PROPRIETARY OR PRINCIPAL CAPACITY AND PRINCIPAL WILLIAM RAYMOND BRAUN LA MESA CALIF WAS FINED 10000 AND SUSPENDED AS A FINANCIAL AND OPERATIONS PRINCIPAL FOR ONE YEAR THEY DIDN'T ADMIT OR DENY ALLEGATIONS THAT THEY FAILED TO MAINTAIN MINIMUM REQUIRED NET CAPITAL FIRST GATEWAY SECURITIES INC ST LOUIS AND PRINCIPAL KENNETH KEITH KAYS FENTON MO WERE FINED 20000 JOINTLY AND SEVERALLY AND EACH WAS FINED 2222 FIRST GATEWAY WAS FINED 2500 JOINTLY AND SEVERALLY WITH ANOTHER RESPONDENT THE NASD SAID THE SANCTIONS WERE IMPOSED FOLLOWING AN APPEAL OF A DECISION BY A DISTRICT COMMITTEE ON BUSINESS CONDUCT BASED ON FINDINGS THAT THE FIRM AND MR KAYS SOLD SECURITIES TO THE PUBLIC AT UNFAIR PRICES AMONG OTHER VIOLATIONS LOWELL H LISTROM & CO KANSAS CITY MO AND TWO PRINCIPALS LOWELL H LISTROM KANSAS CITY MO AND STEPHEN L MOCK GRANDVIEW MO WERE FINED 15000 JOINTLY AND SEVERALLY AND MR LISTROM WAS SUSPENDED FOR TWO WEEKS THE SECURITIES AND EXCHANGE COMMISSION AFFIRMED THE SANCTIONS FOLLOWING AN APPEAL THE NASD SAID THE FIRM MADE IMPROPER WITHDRAWALS FROM A SPECIAL ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS GBM INTERNATIONAL INC HOUSTON AND PRINCIPAL JULIO CARLOS MARRON WERE FINED 51187 JOINTLY AND SEVERALLY WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT THEY VIOLATED REGULATIONS ON PURCHASE AND SALE OF HOT ISSUES SUNPOINT SECURITIES INC LONGVIEW TEXAS AND PRINCIPAL VAN ROBERSON LEWIS III WERE FINED 15000 JOINTLY AND SEVERALLY WITHOUT ADMITTING OR DENYING THEY ALLOWED INDIVIDUALS TO MAKE SECURITIES TRANSACTIONS WHEN REGISTRATIONS HADN'T BEEN APPROVED AND THAT THEY PURCHASED SECURITIES FOR CUSTOMERS WITHOUT PROPER AUTHORIZATION YANKEE FINANCIAL GROUP INC BRIGHT WATERS NY AND PRINCIPAL RICHARD F KRESGE BAYSHORE NY WERE FINED 10000 JOINTLY AND SEVERALLY WITHOUT ADMITTING THAT THEY EXECUTED CERTAIN SECURITIES TRANSACTIONS WITHOUT AN EFFECTIVELY REGISTERED MUNICIPAL SECURITIES PRINCIPAL OR OPTIONS PRINCIPAL INDIVIDUALS DISCIPLINED INCLUDED ANGIE THERESA AGARPAO MOUNTAIN VIEW CALIF FINED 20000 AND BARRED DOUGLAS DRAKE ALCALA SEATTLE FINED 2500 AND SUSPENDED FOR 60 DAYS AND IN A SEPARATE SETTLEMENT SUSPENDED FOR ANOTHER 90 DAYS WITHOUT ADMITTING OR DENYING CHARGES BRUCE B ANGUS HOHENWALD TENN WAS FINED 70000 AND BARRED FOR MISAPPROPRIATING 1447208 MICHAEL J BECAL MARGATE FLA WAS FINED 25000 AND BARRED WILLIAM MUNROE BOLAND JR NEW YORK WAS FINED 20000 AND BARRED PAL BOQUIST TREASURE ISLAND FLA WAS FINED 25000 BARRED AND REQUIRED TO PAY 6000 IN RESTITUTION ROCCO A CALISE JOHNSTON RHODE ISLAND WAS FINED 40000 AND BARRED FOR MISAPPROPRIATING 4290 RICHARD EMANUEL CAMPBELL OAKLAND CALIF WAS FINED 15000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ANDREW WILLIAM CASEBEER PORTLAND ORE WAS FINED 40000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THOMAS E CAVANAGH NEW YORK WAS FINED 20000 AND BARRED ALSO THOMAS GEORGE CECCHI GRAND RAPIDS MICH FINED 250000 BARRED AND REQUIRED TO PAY 129611 IN RESTITUTION ROBERT NAYLOR CHERRINGTON JR SAN FRANCISCO FINED 51126 AND BARRED MICHAEL JOSEPH CLARK ORCHARD PARK NY FINED 1500 AND SUSPENDED ONE BUSINESS DAY WITHOUT ADMITTING OR DENYING ALLEGATIONS ADAM JASON COHEN NEW YORK FINED 20000 AND BARRED PETER JOSEPH CONLEY ANAHEIM HILLS CALIF SUSPENDED SEVEN BUSINESS DAYS BETTY LOU DEISLINGER LITTLE ROCK ARK SUSPENDED FOR ONE YEAR WITHOUT ADMITTING OR DENYING ALLEGATIONS KATHLEEN C DIEDRICH WAVERLY NY FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS FRANCIS A FISHER JR CHERRY HILL NJ FINED 20000 AND BARRED AND PATRICK T FLANAGAN ENFIELD CONN FINED 10000 AND BARRED ALSO STEVEN L FRITZ TULSA OKLA FINED 10000 AND SUSPENDED FOUR MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL DEMETRIO GABRIELE CHULA VISTA CALIF FINED 260000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS STEVEN DOUGLAS GRAU OMAHA NEB SUSPENDED FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING CHARGES PATRICK LEE HAMILTON BURLINGAME CALIF FINED 10000 AND SUSPENDED FOR 30 DAYS WITHOUT ADMITTING OR DENYING CHARGES ALEX L HERMAN DENVER FINED 10000 AND SUSPENDED FOR 90 DAYS RICHARD ALBERT HERNANDEZ TORRANCE CALIF FINED 10000 AND SUSPENDED FOR 90 DAYS WILLIAM FRANKLIN HERNDON WICHITA KAN FINED 7500 AND SUSPENDED ONE MONTH WITHOUT ADMITTING OR DENYING CHARGES JOHN HOPPE ALBUQUERQUE NM FINED 20000 AND BARRED DEBORAH LYNN JENNINGS FRUITLAND IDAHO FINED 15000 AND BARRED ALAN KALUPA NUTLEY NJ FINED 50000 AND BARRED JEFFREY L KARLITZ NEW YORK FINED 5000 AND SUSPENDED FOR 10 BUSINESS DAYS WITHOUT ADMITTING OR DENYING CHARGES ALSO PATRICK G KEEL BAY ST LOUIS MISS FINED 25000 AND BARRED RAYMOND J KELLEHER TARRYTOWN NY FINED 50000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS LARRY L LANIER ATLANTA GA FINED 5000 AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL A LARGUE ROCKVILLE CENTRE NY FINED 10000 AND SUSPENDED FOR TWO YEARS AND ORDERED TO PAY 48337 IN RESTITUTION TO HIS MEMBER FIRM WITHOUT ADMITTING OR DENYING CHARGES ALAN FREDERICK LIPMAN TUCSON ARIZ SUSPENDED FOR 30 DAYS TO MAY 18 1993 AND BARRED IN ANY PRINCIPAL CAPACITY WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE OPENED AN ACCOUNT UNDER AN ASSUMED NAME AND OPENED AN ACCOUNT AT A MEMBER FIRM WITHOUT NOTIFYING IT OF HIS ASSOCIATION WITH ANOTHER MEMBER FIRM MR LIPMAN SAID I DIDN'T DO ANYTHING UNETHICAL IMMORAL OR ILLEGAL I BOUGHT STOCK AND LOST MONEY ON THE DEAL AND IT WAS ONLY SIX OR SEVEN MONTHS LATER THAT I FOUND OUT THE STOCK WAS STOLEN JAMIE M LYLES BIRDSBORO PA FINED 30000 AND BARRED KELLY M MADIGAN TROY NY FINED 10000 AND BARRED PAUL Z MAKRIS FAYETTEVILLE ARK FINED 20000 AND BARREDTHE DECISION ISN'T IN EFFECT PENDING APPEAL TO THE SEC CHARLES CLIFTON MARSHALL SHAWNEE MISSION KAN FINED 68705 BARRED AND REQUIRED TO PAY 13741 IN RESTITUTION SHELDON MASCHLER BAYONNE NJ FINED 5000 AND SUSPENDED ONE BUSINESS DAY ALSO DEBORAH B MCLAUGHLIN BRIDGEPORT CONN FINED 50000 AND BARRED GEORGE W MOFFITT JR PHILADELPHIA FINED 2500 JOINTLY AND SEVERALLY WITH A MEMBER FIRM AND BARRED IN ANY PRINCIPAL SUPERVISORY OR MANAGERIAL CAPACITY WITHOUT ADMITTING OR DENYING ALLEGATIONS FRANK J NEAL HOWELL NJ FINED 33300 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE MISAPPROPRIATED 14040 FRANK A NICOLOIS STATEN ISLAND NY FINED 20000 AND BARRED STEVEN JOSEPH NORI COLMA CALIF FINED 5000 AND BARRED EVERETT GARY OLIVER NORTH MANKATO MINN FINED 10000 AND SUSPENDED FOR 30 DAYS WITHOUT ADMITTING OR DENYING CHARGES ERIC C PIETRANTON NEW CUMBERLAND WVA FINED 20000 AND BARRED OTHERS INCLUDED ANTHONY R RAUCCI JR SOUTHINGTON CONN FINED 100000 AND BARRED FOR MISAPPROPRIATING 38257 GERALD LEE REICHENBACHER MESA ARIZ FINED 100000 BARRED AND ORDERED TO PAY 160433 IN RESTITUTION TO HIS FORMER MEMBER FIRM STEVEN FARLEY RICHARDS APTOS CALIF FINED 10000 AND SUSPENDED FOR 10 BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS WILLIAM H ROOKSTOOL III DOYLESTOWN PA FINED 2500 AND SUSPENDED FOR ONE MONTH WITHOUT ADMITTING OR DENYING ALLEGATIONS ANTHONY JOHN SALEMME STOCKTON CALIF FINED 37650 AND BARRED PETER W SCHELLENBACH GLENCOE ILL FINED 50000 JOINTLY AND SEVERALLY WITH A FORMER MEMBER FIRM AND SUSPENDED FOR 60 DAYS AND BARRED IN ANY PRINCIPAL SUPERVISORY OR MANAGERIAL CAPACITY AND PROHIBITED FROM MAINTAINING ANY PROPRIETARY INTEREST IN ANY NONPUBLICLY TRADED MEMBER OF THE NASD THE US SEVENTH CIRCUIT COURT OF APPEALS AFFIRMED THE ACTION FOLLOWING AN APPEAL OF AN SEC DECISION THE CASE INVOLVED FAILURE TO MAINTAIN MINIMUM REQUIRED NET CAPITAL ACTIVITY DESIGNED TO GIVE THE ILLUSION OF MEETING NET CAPITAL REQUIREMENTS AND OTHER VIOLATIONS ALSO THOMAS H SCHNEIDER MCMURRAY PA FINED 20000 AND BARRED BILLY LAWRENCE SIMPSON WHEATON ILL FINED 54000 BARRED AND ORDERED TO PAY 14000 IN RESTITUTION FOLLOWING AN APPEAL OF A DISTRICT COMMITTEE DECISION AVINASH M SUCHAK MIDDLESEX COUNTY ENGLAND FINED 100000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS WILLIAM K TINGLEY ANSONIA CONN FINED 10000 AND BARRED BRADLEY L UHLFELDER OWINGS MILLS MD FINED 20000 AND BARRED ROBERT ARNOLD WALD ST LOUIS MO FINED 10000 AND SUSPENDED FOR 30 DAYS AND SUSPENSION CONTINUED THEREAFTER UNTIL RESTITUTION OF 12030 IS PAID TO PUBLIC CUSTOMERS WITHOUT ADMITTING OR DENYING ALLEGATIONS DAVID A WALLACE SARASOTA FLA FINED 2500 AND SUSPENDED FOR TWO BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS J ROBERT WILGUS DULUTH GA BARRED IN PART FOR CONVERTING 20000 OF CUSTOMER FUNDS TO HIS OWN USE MICHAEL C WILLIAMS AUGUSTA GA FINED 5000 AND SUSPENDED FOR SIX MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS MR WILLIAMS SAID I WASN'T AWARE THAT MY ACTIVITIES WERE AN INFRACTION I DIDN'T TRY TO DENY ANYTHING STEPHEN WOLFSON REVERE MASS FINED 60000 AND BARRED FOR MISAPPROPRIATING 28623 TWO BROKERS WERE DISCIPLINED FOR PURCHASING FROM AN INDIVIDUAL AT ANOTHER MEMBER FIRM MICROFICHE REFLECTING CUSTOMER ACCOUNT INFORMATION MICHAEL CHARLES WOLOSHIN NEW YORK FINED 20000 AND SUSPENDED FOR 14 DAYS AND EMANUEL HOLZKENNER NEW YORK FINED 2500 AND SUSPENDED FOR 10 BUSINESS DAYS THEY DIDN'T ADMIT OR DENY ALLEGATIONS INDIVIDUALS FINED INCLUDED CARLOS ALBERTO ENRIQUEZ CORAL GABLES FLA 14400 WITHOUT ADMITTING OR DENYING ALLEGATIONS THE INDIVIDUAL INVOLVED IS NOT A CORAL GABLES ATTORNEY BY THE SAME NAME ZACHARY S HANOYAN BOSTON 12000 WITHOUT ADMITTING OR DENYING ALLEGATIONS FREDERICK C HELLER ENGLEWOOD COLO 12500 AFFIRMED BY THE SEC FOLLOWING AN APPEAL DAVID A LEDDEN AURORA COLO 10000 MR LEDDEN SAID THE ACTION WAS BASICALLY A TRADEOFF SINCE HE'S NOW OUT OF THE BROKERAGE BUSINESS WITH THE NASD YOU EITHER TRADE OFF IN ALLOWING THE DISCIPLINARY ACTION OR GO BROKE PAYING FOR LAWYERS OTHERS FINED INCLUDED GEORGE WILLIAM SCHERZER PORTLAND ORE 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS AND ROBERT W WEED WILSON WYO 10000 MR WEED SAID AFTER A SETTLEMENT I WAS RELEASED FROM THE CASE IN FEBRUARY 1992 AND ALL CLAIMS AGAINST ME WERE DROPPED 9305210150 930521 US SHOE POSTS FIRSTQUARTER LOSS AND CUTS DIVIDEND BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL SALES FELL SLIGHTLY TO 6403 MILLION IN THE YEARAGO QUARTER EARNINGS WERE 28 MILLION OR SIX CENTS A SHARE ON SALES OF 6475 MILLION THE REDUCED DIVIDEND OF EIGHT CENTS A SHARE IS PAYABLE JULY 12 TO STOCK OF RECORD JUNE 21 THE COMPANY HAD BEEN PAYING 13 CENTS A SHARE TO STEM THE LOSSES THE COMPANY SAID IT FROZE EXECUTIVE PAY AND BONUSES IN ITS FLOUNDERING WOMEN'S APPAREL RETAILING GROUP AS WELL AS ITS FOOTWEAR GROUP THE COMPANY ALSO VOWED TO CUT PAYROLL AND OTHER COSTS BY 20 IN THE WOMEN'S APPAREL GROUP MICHAEL M SEARLES THE FORMER TOYS R US INC EXECUTIVE WHO HEADS UP THE APPAREL GROUP SAID IN AN INTERVIEW THAT HE HAS CHALLENGED THE HEAD OF EACH APPAREL BUSINESS TO DELIVER A 20 COSTCUTTING PLAN BY JUNE 1 EACH EXECUTIVE WOULD CHOOSE HOW MUCH OF THE SAVINGS WOULD COME FROM LAYOFFS AS OPPOSED TO OTHER CONTROLLABLE EXPENSES SUCH AS TRAVEL BUDGETS MR SEARLES INDICATED LITTLE TOLERANCE FOR HIS GROUP'S WEAKEST PERFORMERS WE HAVE BUSINESSES THAT ARE UNDERPERFORMING WE NEED TO EITHER COME UP WITH ACTION PLANS TO FIX THEM OR GET OUT FROM UNDER THEM HE SAID EARLIER IN THE DAY US SHOE IDENTIFIED THE POOR PERFORMERS AS CASUAL CORNER UPS 'N DOWNS AND CAREN CHARLES HOWEVER A US SHOE SPOKESMAN SAID IT WON'T CONSIDER SELLING THE CASUAL CORNER CHAIN THE APPAREL GROUP TURNED IN THE WORST RESULTS FOR THE QUARTER OPERATING LOSSES WIDENED TO 203 MILLION FROM 33 MILLION A YEAR EARLIER SALES FOR THE GROUP WERE 276 MILLION DOWN 51 FROM A YEAR EARLIER US SHOE BLAMED THE POOR SALES ON COOL WEATHER THE FOOTWEAR GROUP ALSO SAW OPERATING EARNINGS PLUNGE TO 13 MILLION FROM 48 MILLION A YEAR EARLIER SALES WERE 183 MILLION DOWN 2 FROM A YEAR EARLIER THE EASY SPIRIT AND TEXAS BOOT BRANDS REPORTED SUBSTANTIAL GAINS IN SALES AND OPERATING EARNINGS US SHOE SAID BUT THOSE GAINS WERE OFFSET BY PROBLEMS AT THE COMPANY'S FACTORY OUTLETS AND SUBSTANTIAL PRICE CUTTING IN THE VITTORIO RICCI DIVISION OF ITS MARX & NEWMAN FOOTWEAR IMPORT BUSINESS THE ONLY IMPROVEMENT CAME FROM THE OPTICAL RETAILING GROUP WHICH INCLUDES THE LENSCRAFTERS EYEGLASSES CONCERN THE GROUP'S OPERATING EARNINGS OF 131 MILLION WERE UP 3 FROM A YEAR EARLIER SALES INCREASED 66 TO 182 MILLION WHILE SAMESTORE SALES WERE UP 26 9305210149 930521 WHO'S NEWS REED ELSEVIER PLC REED ELSEVIER PLC LONDON THIS PUBLISHING AND INFORMATIONSERVICES CONCERN NAMED NEAL VITALE 39 YEARS OLD VICE PRESIDENT AND GENERAL MANAGER OF VARIETY INC A PART OF CAHNERS PUBLISHING CO'S CONSUMER/ENTERTAINMENT DIVISION THE POSITION IS NEW MR VITALE WILL BE RESPONSIBLE FOR THE OPERATIONS OF VARIETY DAILY VARIETY AND VARIETY EUROPE CAHNERS IS A DIVISION OF REED PUBLISHING USA INC WHICH IN TURN IS A SUBSIDIARY OF REED ELSEVIER 9305210148 930521 NUTRI/SYSTEM WILL BEGIN REOPENING MANY UNITS RESUMES FOOD SHIPMENTS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL NUTRI/SYSTEM INC SHAKEN BY A FINANCIAL STORM THAT NEARLY SHUT IT DOWN IS STARTING TO CHART A COURSE TO CALMER WATERS ITS EMERGENCY CHIEF EXECUTIVE SAYS THE OPERATOR AND FRANCHISER OF WEIGHTLOSS CENTERS CLOSED ALL 283 COMPANYOWNED OUTLETS LAST MONTH AMID A CRISIS AFTER ITS BANKS SEIZED THE COMPANY'S CASH NOW IT AIMS TO BEGIN NEXT WEEK TO REOPEN MANY OF THOSE UNITS ASSUMING THAT A FEDERAL BANKRUPTCY JUDGE IN PHILADELPHIA RAISES NO OBJECTION SAID MICHAEL E HEISLEY CHAIRMAN OF HEICO INC CHICAGO MR HEISLEY IS LEADING AN INVESTOR GROUP'S EFFORTS TO TAKE OVER PRIVATELY HELD NUTRI/SYSTEM AT LEAST 200 STORES SHOULD REOPEN IN THE NEXT TWO WEEKS OR SO HE SAID SPEAKING BY TELEPHONE FROM MINNEAPOLIS HE DOESN'T PLAN TO REOPEN THE OTHERS CITING FINANCIAL LIMITATIONS AS HE PUTS IT IF YOU WANT TO SAVE A SICK TREE YOU CUT IT BACK UNTIL IT'S ALL HEALTHY HE SAID HE WILL ASK THE COURT THIS WEEK FOR A HEARING ON THE PLAN WITH APPROVAL OF US BANKRUPTCY JUDGE DAVID A SCHOLL MR HEISLEY HAS BEEN ACTING AS CHIEF EXECUTIVE OFFICER OF NUTRI/SYSTEM SINCE LAST WEEK WHILE HE WORKS OUT A FORMAL TAKEOVER OF THE BLUE BELL PA COMPANY SOME 850 FRANCHISED UNITS OF NUTRI/SYSTEM WHICH HAVE REMAINED OPEN THROUGHOUT THE CRISIS ONCE AGAIN ARE RECEIVING SHIPMENTS OF DIET FOOD FROM THE FRANCHISER MR HEISLEY SAID NUTRI/SYSTEM OUTLETS OFFER EXERCISE PROGRAMS AND SELL A LINE OF PACKAGED NONFROZEN DIET FOODS FRANCHISEES CONFIRMED THAT SHIPMENTS HAVE RESUMED HE HAS GOTTEN THE FOOD MOVING SAID JACK OVERTON PRESIDENT OF A FRANCHISEE GROUP CALLED NSF CORP THE FOOD REACHED THE CENTERS JUST AS THE PREVIOUS INVENTORY WAS BEGINNING TO RUN OUT MR OVERTON REACHED IN PHOENIX THEN LEFT FOR PHILADELPHIA FOR A MEETING YESTERDAY BETWEEN LEADERS OF THE FRANCHISEE GROUP AND MR HEISLEY MR HEISLEY SAID HE HOPES TO REASSURE THE FRANCHISEES THAT HIS PLANS TO REVIVE NUTRI/SYSTEM ARE GOING FORWARD LAST MONTH NUTRI/SYSTEM CURTAILED ITS NORMAL OPERATIONS AFTER BANKS SEIZED THE COMPANY'S REMAINING FUNDS THE COMPANY HAD BEEN IN DEFAULT ON ITS LOANS FRANCHISEES FEARFUL OF RUNNING OUT OF PROPRIETARY DIET FOODS TO SELL THEN FORCED THE FRANCHISER INTO BANKRUPTCYLAW PROCEEDINGS THIS MONTH THE COURT FIRST PUT THE COMPANY UNDER THE CHARGE OF AN INTERIM TRUSTEE THEN IT HANDED THE REINS TO MR HEISLEY WHOSE CHICAGO FIRM HAS TAKEN OVER SEVERAL TROUBLED COMPANIES MEANWHILE SUCH RIVALS AS JENNY CRAIG INTERNATIONAL INC AND HJ HEINZ CO'S WEIGHT WATCHERS INTERNATIONAL INC UNIT HAVE MOVED AGGRESSIVELY TO GRAB NUTRI/SYSTEM CUSTOMERS WE'VE HEARD FROM SOME FRANCHISEES THAT THE EFFECT HAS BEEN NEGLIGIBLE AND FROM OTHERS THAT IT HAS BEEN SIGNIFICANT MR HEISLEY SAID FRANCHISEE DAVID SKULNIK WHOSE SLIM LIFE WEIGHT LOSS CENTERS CORP IN PARAMUS NJ OVERSEES 61 NUTRI/SYSTEM UNITS SAID SLIM LIFE'S SALES LAST WEEK WERE 25 BELOW NORMAL I THINK WE'RE COMING BACK DR SKULNIK WHO HAS A DOCTORATE IN CHEMISTRY SAID WITH SALES THIS WEEK PERHAPS ONLY 5 BELOW NORMAL HURTING SALES HE SAID WASN'T COMPETITORS' ADS SO MUCH AS IT WAS THE SHORTAGE OF PRODUCTS TO SELL MANY NUTRI/SYSTEM CUSTOMERS REMAIN FRUSTRATED BECAUSE THE COMPANYOWNED CENTERS ARE CLOSED IN SOME AREAS SUCH AS ST LOUIS WASHINGTON LOS ANGELES AND MIAMI COMPANYOWNED STORES WERE HEAVILY CONCENTRATED I'M TOTALLY DISGUSTED I FEEL ABANDONED SAID MARILYNN PANNELL A NUTRI/SYSTEM DIETER IN WEST ISLIP NY MS PANNELL SAID SHE DROVE MORE THAN THREE HOURS THE OTHER DAY ON A ROUND TRIP TO YONKERS NY TO PICK UP DIET FOOD FOR HERSELF AND HER DAUGHTER FROM A NUTRI/SYSTEM FRANCHISE SHE IS EAGER FOR LONG ISLAND UNITS TO REOPEN THERE IS NO INFORMATION AVAILABLE FOR CONSUMERS ABOUT THEIR LOCAL CENTERS SHE COMPLAINED THERE'S A COMPLETE BLACKOUT 9305210147 930521 ART OF INFLUENCE HOW ONE MAN MADE LAZARD FRERES A FORCE IN MUNICIPAL BONDS RICHARD POIRIER'S NETWORK OF CONTACTS HELPED FIRM TO TOP SPOT IN NEW JERSEY PROTESTS IN 2 OTHER STATES BY LAURIE P COHEN AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL IN 1990 LAZARD FRERES & CO DIDN'T MANAGE THE UNDERWRITING OF A SINGLE MUNICIPALBOND ISSUE IN NEW JERSEY LAST YEAR THE INVESTMENTBANKING BOUTIQUE RANKED NO 1 IN THE STATE BY A LONG WAYS HOW DID LAZARD WREST DOMINANCE OF THAT BUSINESS FROM SUCH WALL STREET POWERHOUSES AS MERRILL LYNCH & CO THE ANSWER RICHARD P POIRIER JR THE 42YEAROLD PARTNER AT THE WHITESHOE FIRM FORGED A NETWORK OF POLITICAL CONTACTS IN NEW JERSEY THAT REACHES UP TO NEW JERSEY GOV JIM FLORIO'S CHIEF OF STAFF JOSEPH SALEMA INDEED TO THE GOVERNOR HIMSELF MR POIRIER'S STORY SHEDS MUCH LIGHT ON HOW WALL STREET WINS BUSINESS FROM STATE AND LOCAL GOVERNMENTS AROUND THE COUNTRY AN INVESTMENT BANK'S POLITICAL RELATIONSHIPS AND CONTRIBUTIONS OFTEN PLAY A LARGER ROLE IN THE SELECTION OF UNDERWRITERS AND ADVISERS THAN DO SKILL AND QUALIFICATIONS FOR THE ASSIGNMENT ACROSS THE COUNTRY LOCAL GOVERNMENTS ISSUE HUNDREDS OF BILLIONS OF DOLLARS A YEAR IN MUNICIPAL BONDS USING THE PROCEEDS FOR PROJECTS SUCH AS BUILDING ROADS INVESTMENT BANKS ACT AS DEALERS OR UNDERWRITERS BUYING THE BONDS FROM GOVERNMENTAL ISSUERS AND RESELLING THEM TO INVESTORS AT A MARKUP MR POIRIER IS ONE OF LAZARD'S MOST IMPORTANT PARTNERS A CIGARSMOKING SIX FOOTER HE WAS RESPONSIBLE FOR GENERATING A THIRD OF LAZARD'S MUNICIPALFINANCE REVENUE IN 1992 A FEAT THAT EARNED HIM MORE THAN 1 MILLION THAT YEAR PEOPLE FAMILIAR WITH THE FIRM SAY INSIDERS SAY MANY OF LAZARD'S 66 PARTNERS ARE EXTREMELY SUPPORTIVE OF MR POIRIER WHO IS ONE OF THE FIRM'S BIGGEST PRODUCERS BUT NOT ALL HIS CLIENTS ARE ENAMORED OF MR POIRIER OFFICIALS IN KENTUCKY FUMED OVER HIS HANDLING OF A 250 MILLION TURNPIKE BOND ISSUE THERE LAST OCTOBER A BLISTERING 10PAGE MEMO WRITTEN BY SIX SENIOR KENTUCKY STATE FINANCE CABINET STAFF MEMBERS TO THE STATE FINANCE SECRETARY ACCUSED MR POIRIER OF LYING MAKING UNAUTHORIZED TRADES ON THE STATE'S BEHALF AND OVERCHARGING THE STATE BY MORE THAN 1 MILLION THE STAFFERS SAID OF MR POIRIER HIS STATEMENTS WERE INACCURATE AND BASED ON CONTRIVED NUMBERS HIS ATTITUDE WAS ANTAGONISTIC THEY CONCLUDED THAT THE LAZARD UNDERWRITING RECALLED MANY OF THE BOILERROOM TACTICS OF AN ERA WE HOPED WAS BEHIND US MR POIRIER DECLINES TO BE INTERVIEWED HIS LAWYER DANIEL BELLER DECLINES TO COMMENT ON THIS ARTICLE WITH THE EXCEPTION OF ONE INCIDENT LAZARD DECLINES TO COMMENT MR POIRIER CERTAINLY HASN'T WORN OUT HIS WELCOME IN NEW JERSEY WHERE HE LIVES IN THE EXCLUSIVE COMMUNITY OF SADDLE RIVER BY ALL ACCOUNTS THE STATE HAS HEAPED MYRIAD BENEFITS ON MR POIRIER AND LAZARD IN THE PAST TWO YEARS IN 1991 GOV FLORIO APPOINTED MR POIRIER TO THE STATE COMMISSION ON CAPITAL BUDGETING AND PLANNING MR POIRIER WAS THE FINANCIAL ADVISER FOR THE STATE'S TURNPIKE AUTHORITY WHOSE 29 BILLION SALE OF BONDS IN 1991 AND 1992 IS NOW THE FOCUS OF A FEDERAL INVESTIGATION INVESTIGATORS WITH THE US ATTORNEY'S OFFICE IN MANHATTAN AND THE SECURITIES AND EXCHANGE COMMISSION ARE ALSO SCRUTINIZING MR POIRIER'S ACTIONS IN THE NEW JERSEY TURNPIKE MATTER INDIVIDUALS FAMILIAR WITH THE PROBE SAY THE STATE PAID LAZARD A 23 MILLION FEE FOR ITS FINANCIALADVISORY ROLE IN THE TURNPIKE SALE THEN LAZARD THROUGH MR POIRIER EARNED MORE THAN 10 MILLION AS LEAD MANAGER OF A 18 BILLION NEW JERSEY STATE BOND ISSUE LAST DECEMBER ACCORDING TO INDIVIDUALS WITH KNOWLEDGE OF THE FEES MR POIRIER ALSO WON LAZARD THE TOP SPOT IN A DOZEN OTHER NEW JERSEY BOND UNDERWRITINGS IN 1991 AND 1992 HOW AN INVESTMENT BANK KNOWN PRIMARILY FOR ITS INTERNATIONAL MERGER EXPERTISE BECAME SUCH A FORCE IN NEW JERSEY PUBLIC FINANCE PUZZLES SOME PEOPLE I HAVE NO IDEA HOW LAZARD ROSE TO PROMINENCE IN SUCH A SHORT TIME SAYS KEN DEROBERTS OF PRINTON KANE GROUP INC A SHORT HILLS NJ UNDERWRITER PERHAPS THEY'RE GIVING SOMEONE IN THE STATEHOUSE A LOT OF GOOD ADVICE BUT I HAVEN'T SEEN EVIDENCE OF THAT IN THE PAST THREE YEARS LAZARD HAS CONTRIBUTED 53000 TO THE DEMOCRATIC STATE COMMITTEE ACCORDING TO STATE CAMPAIGN CONTRIBUTION RECORDS LAZARD ALSO PAID 15000 FOR TICKETS TO THE PARTY'S ANNUAL GOVERNOR'S GALA FUNDRAISER EACH OF THE LAST THREE YEARS DURING LAST SUMMER'S DEMOCRATIC NATIONAL CONVENTION IN NEW YORK LAZARD PUT ON A SWANK HUDSON RIVER CRUISE FOR NEW JERSEY DELEGATES NONE OF THIS MAKES LAZARD MUCH DIFFERENT FROM GOLDMAN SACHS & CO MERRILL LYNCH AND THE HANDFUL OF OTHER INVESTMENT BANKS WITH A LOT OF STATE BUSINESS BUT THERE IS MORE TO THE STORY OF HOW MR POIRIER WINS BUSINESS SOME COLLEAGUES CLAIM THAT MR POIRIER HAS OPENLY SUGGESTED THAT HE BELIEVES BUSINESS CAN BE BOUGHT IN EARLY 1989 WHILE AT PRUDENTIAL SECURITIES INC MR POIRIER CONFRONTED PRUDENTIAL INVESTMENT BANKER HARRIETT STANLEY A FORMER MASSACHUSETTS STATE GOVERNMENT OFFICIAL IN A CLOSEDDOOR MEETING IN HIS NEW YORK OFFICE AS PRUDENTIAL MULLED SOME PENDING MASSACHUSETTS MUNICIPALBOND BUSINESS MS STANLEY SAYS THAT MR POIRIER ASKED HER POINTBLANK HOW MUCH WOULD IT COST TO BUY THE STATE MS STANLEY WHO NOW RUNS THE HADLEY GROUP A MASSACHUSETTS FINANCIAL ADVISORY FIRM SAYS SHE WAS AGHAST AT THE QUESTION SHE SAYS THAT SHE COMPLAINED TO GERALD MCBRIDE PRUDENTIAL'S CHIEF OF MUNICIPALBOND FINANCE BUT THAT HE NEVER ACTED ON THE MATTER MR MCBRIDE SAYS HE DOESN'T RECALL MS STANLEY'S HAVING DISCUSSED THE ISSUE WITH HIM IF SHE HAD HE SAYS I WOULD HAVE GONE THROUGH THE ROOF MR POIRIER'S LAWYER MR BELLER SAYS HIS CLIENT CATEGORICALLY DENIES THAT ANY SUCH CONVERSATION OCCURRED MR POIRIER MR BELLER ADDED NEVER MADE A POLITICAL PAYMENT FOR BUSINESS IN HIS LIFE MR BELLER NOTES THAT MS STANLEY TESTIFIED IN AN UNRELATED ARBITRATION CASE INVOLVING POLITICAL PAYMENTS AT PRUDENTIAL AND NEVER MENTIONED THE CONVERSATION WITH MR POIRIER IF IT HAPPENED SHE WOULD HAVE TESTIFIED ABOUT IT MR BELLER SAYS THOUGH MR POIRIER WAS ONE OF SEVERAL EXECUTIVES IN PRUDENTIAL'S MUNICIPALBOND GROUP HE FREQUENTLY LED OUTSIDERS TO BELIEVE HE RAN THE PLACE COLLEAGUES SAY SIGNING LETTERS TO CLIENTS WITH THE TAGLINE MANAGER PUBLIC FINANCE IN FACT HE WAS A MANAGING DIRECTOR IN THE MUNICIPALBOND GROUP MR POIRIER BEGAN BUILDING HIS BUSINESS BASE IN 1980 IN HIS NATIVE STATE OF MAINE BY THE MID1980S HAVING JOINED PRUDENTIAL HE SET HIS SIGHTS ON BIGGER STATES WITH MORE FINANCINGS HE DID THIS IN LARGE PART BY GETTING INVOLVED IN NATIONAL DEMOCRATIC POLITICS AND HELPING TO RAISE MONEY FOR STATE AND LOCAL CANDIDATES AND MINGLING WITH DEMOCRATIC PARTY BIGWIGS ONE OF HIS MAIN CONTACTS COLLEAGUES SAY WAS PETER KELLY FORMER FINANCE CHAIRMAN OF THE NATIONAL DEMOCRATIC PARTY AND A WASHINGTON LOBBYIST MR POIRIER FREQUENLY TOLD COLLEAGUES THAT HE WAS CALLING MR KELLY TO FIND OUT WHO THE BEST POLITICAL CONTACTS WERE IN A PARTICULAR LOCALITY ODD DOINGS IN FLORIDA MR KELLY SAYS MR POIRIER DIDN'T NEED MR KELLY'S CONTACTS AFTER ALL MR POIRIER KNEW EVERYONE I KNEW THE FORMER FINANCE CHAIRMAN SAYS HE WAS WELL ACQUAINTED WITH THOSE PEOPLE STATE TREASURERS IN PARTICULAR BESIDES ELECTED OFFICIALS MR POIRIER ALSO TAPPED LAWYERS AND LEGISLATORS IN A POSITION TO HELP HIM WIN BUSINESS WHILE BIDDING FOR THE LEAD UNDERWRITER MANDATE FOR A 700 MILLION BONDREFUNDING ISSUE IN FLORIDA IN 1988 MR POIRIER SENT A 25000 PRUDENTIAL CHECK FOR SERVICES RENDERED TO THE POLITICALLY CONNECTED LAW FIRM OF SWANN & HADDOCK IN TALLAHASSEE ACCORDING TO FORMER PRUDENTIAL INVESTMENT BANKERS THE INVESTMENT BANKERS RECALL THINKING THAT THE CHECK WAS ODD ONLY SEVERAL DAYS EARLIER THEY SAY MR POIRIER TOLD COLLEAGUES HE NEEDED TO RAISE 25000 FOR POLITICAL CONTRIBUTIONS IN ORDER TO WIN THE FLORIDA DEAL AND BOASTED OF HIS CONNECTIONS TO THE LAW FIRM ALLAN KATZ MANAGING PARTNER OF KATZ KUTTER & HAIGLER A SUCCESSOR FIRM TO SWANN & HADDOCK SAYS THAT IN NO INSTANCE DID MONEY COME TO THE FIRM PURSUANT TO ANYTHING OTHER THAN A RETAINER OR FOR SPECIFIC FEES FOR SERVICES RENDERED ALTHOUGH MR POIRIER BEGAN AT PRUDENTIAL IN 1980 HE DIDN'T TAKE HIS SERIES 7 TEST A REQUIREMENT OF HIS BUSINESS UNTIL AUGUST 1988 ACCORDING TO THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AFTER LOSING A BID TO RUN PRUDENTIAL'S PUBLICFINANCE DEPARTMENT HE LEFT IN APRIL 1989 AND JOINED LAZARD HE TOOK WITH HIM A HUGE PIECE OF UNDERWRITING BUSINESS HE HAD WON THE LEAD MANAGING ROLE IN AN 861 MILLION FLORIDA STATE BOARD OF EDUCATION DEAL WINNING LEADMANAGING MANDATES IS PARTICULARLY LUCRATIVE FOR WALL STREET INVESTMENT BANKS LEAD UNDERWRITERS TYPICALLY KEEP ABOUT 50 OF THE FEES FOR UNDERWRITING BONDS WITH THE COMANAGERS SHARING THE REST COMPETITORS AND COLLEAGUES SAY A GROUP OF WELLCONNECTED LOBBYISTS LAWYERS STATE BUREAUCRATS AND LEGISLATORS IN FLORIDA HELPED MR POIRIER GAIN THE LEAD UNDERWRITING SPOT IN WHAT WAS THEN FLORIDA'S LARGESTEVER FINANCING THOSE CONTACTS INCLUDED POLITICIANS FOR WHOM MR POIRIER RAISED CAMPAIGN MONEY FROM COLLEAGUES BUT THE 861 MILLION FLORIDA DEAL QUICKLY TURNED SOUR FOR MR POIRIER AS OTHER INVESTMENT BANKS IN THE SYNDICATE COMPLAINED THAT LAZARD HAD HOGGED MOST OF THE BOND SALES FOR ITSELF AND SOLD THE SEPTEMBER 1989 ISSUE TOO CHEAPLY DEPRIVING THE STATE OF HIGHER REVENUE THE OUTCRY TRIGGERED A LENGTHY INQUIRY BY THE STATE INTO HOW LAZARD HAD BEEN CHOSEN AS LEAD UNDERWRITER IT ALSO PROMPTED GOV LAWTON CHILES TO ORDER THAT FIRMS CONTRIBUTING TO CANDIDATES FOR STATEWIDE OFFICE BE BARRED FROM DOING BOND BUSINESS IN FLORIDA THERE IS NO SUCH BAN IN NEW JERSEY WHERE MR POIRIER NEXT SOUGHT BUSINESS MR POIRIER'S FIRST FOCUS WAS ON HEALTHCARE FINANCINGS AN AREA IN WHICH LAZARD HAD FAR LESS EXPERIENCE THAN MANY BIGGER WALL STREET FIRMS YET IN A 10MONTH PERIOD IN 1991 AND 1992 LAZARD LED FOUR MAJOR HEALTHCARE UNDERWRITINGS FOR NEW JERSEY HOSPITALS MORE THAN ANY OTHER SECURITIES FIRM DURING THAT TIME LAZARD HELPED RAISE 225 MILLION IN HEALTHCARE ISSUES IN NEW JERSEY IN 1991 MAKING IT THE TOPRANKED LEAD MANAGER OF HEALTHCARE ISSUES IN NEW JERSEY IN 1991 THAT SAME YEAR LAZARD WASN'T THE LEAD MANAGER FOR A SINGLE HEALTHCARE FINANCING ANYWHERE ELSE IN THE NATION SAYS SECURITIES DATA SOME HOSPITAL ADMINISTRATORS AND STAFFERS AT THE NEW JERSEY HEALTH CARE FACILITIES FINANCE AUTHORITY WHICH IS RESPONSIBLE FOR SELECTING UNDERWRITERS FOR ALL OF THE STATE'S HOSPITAL PROJECTS SAY THEY BELIEVE MR POIRIER WON THESE DEALS BECAUSE OF HIS CONNECTIONS TO MR SALEMA THE GOVERNOR'S CHIEF OF STAFF AND OTHERS IN THE GOVERNOR'S OFFICE WE HAD SELECTED PRUDENTIAL BUT THEN ALL OF A SUDDEN WE GOT A CALL FROM THE HEALTHCARE AUTHORITY'S THENEXECUTIVE DIRECTOR KAY FERN TELLING US LAZARD HAD TO HAVE THE TOP SPOT SAYS JACK DECERCE THE FORMER PRESIDENT OF CENTRASTATE MEDICAL CENTER IN FREEHOLD NJ IT WAS OBVIOUSLY CONTROLLED BY THE GOVERNOR'S OFFICE MS FERN DECLINES TO COMMENT RECALLS GUS MONGIELLO THE CHIEF FINANCIAL OFFICER OF HACKENSACK MEDICAL CENTER WE WANTED GOLDMAN BUT IT WAS THE AUTHORITY'S DECISION TO HAVE LAZARD A SPOKESMAN FOR GOV FLORIO AND MR SALEMA SAYS THAT THE GOVERNOR'S OFFICE DOES NOT CHOOSE UNDERWRITERS HE ADDS IT NEEDS TO BE POINTED OUT THAT THIS IS AN ELECTION YEAR IN NEW JERSEY AND A LOT OF ALLEGATIONS WILL BE MADE AND THE PUBLIC WILL GET THE OPPORTUNITY TO JUDGE WHAT IS TRUE TED SCHWARTZ A MONTCLAIR NJ LAWYER WHO IS CHAIRMAN OF THE AUTHORITY'S FINANCE COMMITTEE EXPLAINS LAZARD'S SELECTION THIS WAY WE WANTED TO OPEN UP THE PROCESS TO BANKERS WHO COULDN'T DO BUSINESS WITH THE AUTHORITY BEFORE MR SCHWARTZ A BIG BACKER OF GOV FLORIO SAYS HE FIRST MET MR POIRIER IN CONNECTION WITH THE FINANCINGS BUT HAS SINCE SEEN HIM AT SOME OF THE MAJOR PRESIDENTIAL CAMPAIGN EVENTS PUT ON BY GOV FLORIO AND OTHER NEW JERSEY DEMOCRATS LAST YEAR A MONTH AFTER ITS LAST NEW JERSEY HOSPITAL FINANCING IN MARCH 1992 MR POIRIER AND LAZARD WERE NAMED FINANCIAL ADVISER ON THE TURNPIKE REFUNDING THE MANHATTAN US ATTORNEY'S OFFICE AND THE SEC ARE LOOKING AT WHETHER MERRILL LYNCH AND OTHER INVESTMENT BANKS INVOLVED IN THE SALE OF NEW JERSEY TURNPIKE BONDS MIGHT HAVE FORMED ILLEGAL JOINT VENTURES WITH ARMACON SECURITIES INC A SMALL CLEMENTON NJ BOND DEALER IN WHICH MR SALEMA OWNS A 50 INTEREST MR POIRIER SCORED TWO MORE COUPS IN EARLY 1992 WHEN LAZARD WAS NAMED MANAGING UNDERWRITER FOR A 4227 MILLION BOND OFFERING BY THE NEW JERSEY HIGHWAY AUTHORITY AND A 224 MILLION BOND SALE BY THE NEW JERSEY SPORTS AND EXPOSITION AUTHORITY THESE DEALS HELPED CATAPULT LAZARD TO THE TOP SPOT IN THE NEW JERSEY MUNICIPALUNDERWRITING RACE THE FIRM SNARED 257 OF THE BUSINESS IN 1992 ACCORDING TO SECURITIES DATA MORE THAN DOUBLE ITS NEAREST RIVAL IT IS UNCLEAR WHY MR POIRIER AND LAZARD WERE PICKED FOR THE SPORTS AUTHORITY ISSUE NO FORMAL PRESENTATIONS WERE EVER MADE TO THE AUTHORITY'S BOARD WHICH VOTED 101 TO APPROVE LAZARD AND SOME NEW JERSEY STATE GOVERNMENT STAFFERS FAMILIAR WITH THE BOND ISSUE SAY THAT LAZARD'S UNDERWRITING PROPOSAL WASN'T THE BEST ONE RECEIVED BY THE AUTHORITY THE ONLY MEMBER TO VOTE AGAINST LAZARD WAS PETER L LEVINE THE SPORTS AUTHORITY'S FORMER CHAIRMAN WHO COMPLAINED THAT THE SELECTION WAS POLITICALLY MOTIVATED AND PERHAPS PUSHED ON THE AUTHORITY BY GOV FLORIO'S ASSOCIATES MR LEVINE WAS REMOVED FROM THE AUTHORITY'S POWERFUL EXECUTIVE COMMITTEE SOON AFTER MR POIRIER'S CROWNING ACHIEVEMENT WAS WINNING THE MANAGINGUNDERWRITER MANDATE FOR LAST DECEMBER'S 18 BILLION OFFERING OF NEW JERSEY GENERALOBLIGATION BONDS THAT DEAL BROUGHT LAZARD SOME 10 MILLION IN FEES AND PROFITS AND PROPELLED IT TO THE TOP SPOT IN NEW JERSEY'S HOTLY CONTESTED UNDERWRITING RACE THE DEAL BEGAN THE WAY THAT MUNICIPAL BOND OFFERINGS OFTEN DO WITH AN UNDERWRITER BROACHING THE IDEA WITH STATE OFFICIALS IN THE FALL OF 1990 MR POIRIER PROPOSED THE IDEA TO THE TREASURER'S OFFICE IN NEW JERSEY BUT STATE TREASURER DOUGLAS BERMAN OPPOSED THE PLAN EVEN THOUGH THE BONDS WOULD MAKE MONEY AVAILABLE FOR CAPITAL SPENDING IN THE SHORT TERM MR BERMAN BELIEVED THE PLAN WAS FAR TOO BURDENSOME BECAUSE IT WOULD INCREASE THE STATE'S DEBT BY SOME 650 MILLION IN THE LONG TERM MR BERMAN TESTIFIED AGAINST THE LAZARD PROPOSAL IN BUDGET HEARINGS BEFORE THE NEW JERSEY STATE LEGISLATURE IN 1991 AFTER MR BERMAN RESIGNED AS TREASURER IN JANUARY 1992 GOV FLORIO APPOINTED SAM CRANE MR SALEMA'S BROTHERINLAW TO THE JOB MR CRANE A FORMER BUDGET DIRECTOR FOR THE NEW JERSEY LEGISLATURE DIDN'T OPPOSE THE PLAN A SPOKESMAN FOR MR CRANE SAYS NEW JERSEY MOVED AHEAD WITH THE BIG ISSUE LAST DECEMBER BECAUSE LOW INTEREST AND CONSTRUCTION COSTS ALLOWED US TO REALIZE SAVINGS AND TO PERFORM MUCHNEEDED CAPITAL WORK AS IF THE FEES LAZARD EARNED FROM ITS MANAGEMENT OF THE UNDERWRITING WEREN'T ENOUGH STATE TREASURY OFFICIALS WERE DIRECTED BY ROBERT DECOTIIS GOV FLORIO'S CHIEF COUNSEL TO LET LAZARD TEMPORARILY REINVEST THE 18 BILLION IN PROCEEDS IN US TREASURY SECURITIES ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER IT WAS AN ODD BREAK WITH PAST PRACTICE NEW JERSEY'S DIVISION OF INVESTMENT WHICH MANAGES A 44 BILLION PORTFOLIO HAD ALWAYS REINVESTED BOND PROCEEDS ITSELF THROUGH A COMPETITIVE BIDDING PROCESS IN THIS CASE ROLAND MACHOLD THE DIRECTOR OF THE DIVISION OF INVESTMENT AND ROBERT LURIE NEW JERSEY'S DIRECTOR OF PUBLIC FINANCE BOTH WROTE MEMOS TO MR CRANE RECOMMENDING THAT THE PROCEEDS FROM THIS OFFERING BE INVESTED THROUGH A COMPETITIVE BIDDING PROCESS RATHER THAN GIVING LAZARD A MONOPOLY THEY ARGUED THAT NEW JERSEY WOULD OTHERWISE HAVE NO WAY OF KNOWING WHETHER IT WAS GETTING THE BEST POSSIBLE RETURN THEIR ARGUMENT FAILED MR MACHOLD DECLINES TO COMMENT ON THE MATTER EXCEPT TO SAY THAT FOR REINVESTMENTS COMPETITIVE BIDDING IS THE ABSOLUTE NORM MR LURIE DECLINES TO COMMENT LAZARD OFFICIALS INSISTED THEY HAD TO HAVE THE MONOPOLY ON INVESTMENT OF PROCEEDS BECAUSE THIS WAS EXCEEDINGLY COMPLEX AND REQUIRED THEIR EXPERTISE THAT IS PRECISELY THE ARGUMENT MR POIRIER MADE IN KENTUCKY LAST YEAR WHEN HE ARGUED AGAINST THE STATE'S PROPOSAL THAT THE REINVESTMENT OF 250 MILLION IN BONDSALE PROCEEDS BE PUT OUT FOR COMPETITIVE BIDS IN THEIR LONG MEMO CRITICAL OF MR POIRIER KENTUCKY FINANCEDEPARTMENT OFFICIALS SAID THEY DISCOVERED THAT IN ONE INSTANCE THE PRICES LAZARD CHARGED FOR THE INVESTMENT WERE HIGHER BY AS MUCH AS NINETEEN THIRTYSECONDS OF A PERCENTAGE POINT OR ABOUT 1 MILLION THAN A QUOTE RECEIVED FROM PAINEWEBBER GROUP INC SEE RELATED LETTER LETTERS TO THE EDITOR LAZARD FRERES DISPUTES ARTICLE WSJ MAY 24 1993 9305210146 930521 THURSDAY'S MARKETS LATE BUYING IGNITES STOCKS BONDS DECLINE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A LATE SURGE OF BUYING PUSHED THE DOW JONES INDUSTRIAL AVERAGE TO A SECOND CONSECUTIVE RECORD BOND PRICES FELL AND THE DOLLAR EDGED LOWER THE INDUSTRIAL AVERAGE CLIMBED 2325 POINTS TO 352328 STANDARD & POOR'S 500STOCK INDEX ROSE 302 TO 45059 AND THE NASDAQ COMPOSITE INDEX JUMPED 700 TO 69743 TRADING WAS DIRECTIONLESS MOST OF THE DAY UNTIL A LATE WAVE OF BUYING IGNITED THE DOW INDUSTRIALS DESPITE THE STRONG CLOSE ANALYSTS SAID INVESTORS WERE STILL CATCHING THEIR BREATH AFTER WEDNESDAY'S FRENZIED TRADING THAT RESULTED IN A 55POINT GAIN THE UNEXPECTED TURN IN THE MARKET'S FORTUNES WAS A SHOCK TO MOST INVESTORS SAID ALAN R ACKERMAN MARKET STRATEGIST AT REICH & CO IT WAS PSYCHOLOGICALLY EXHAUSTING BOND PRICES FLUCTUATED MUCH OF THE DAY IN GENERALLY LACKLUSTER TRADING AS INVESTORS WERE RELUCTANT TO LET THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE SWERVE FAR FROM 7 IN EITHER DIRECTION THE YIELD ON THE ISSUE CREPT UP TO 699 UNDER 7 IS A GREEN LIGHT FOR EQUITIES OVER 7 IS A RED LIGHT MR ACKERMAN SAID MR ACKERMAN SEES MORE MARKET TURBULENCE AHEAD THE REAL QUESTION IS WHAT HAPPENS TO CLINTON'S ECONOMIC PROGRAM HE SAID THE POSSIBILITY OF A DEADLOCK BETWEEN THE PRESIDENT AND CONGRESS MAKES THIS A VOLATILE MARKET WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 038 TO 10567 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2795 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1130 ISSUES ROSE AND 775 FELL BOND PRICES DECLINED THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL MORE THAN 1/4 POINT OR MORE THAN 250 FOR EACH 1000 FACE AMOUNT THE DOLLAR SLIPPED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16172 MARKS AND 11065 YEN COMPARED WITH 16230 MARKS AND 11065 YEN WEDNESDAY 9305210145 930521 WHO'S NEWS BOB EVANS EXECUTIVE RETIRES AFTER SEIZURE OF MARIJUANA PLANTS COLUMBUS OHIO KEITH P BRADBURY TOOK EARLY RETIREMENT FROM HIS BOB EVANS FARMS INC POSTS AS CHIEF FINANCIAL OFFICER TREASURER AND DIRECTOR SIX DAYS AFTER POLICE SEIZED MARIJUANA PLANTS LIGHTS AND OTHER GROWING EQUIPMENT FROM HIS GROVEPORT OHIO HOME POLICE ALSO SEIZED HARVESTED MARIJUANA PLANTS FROM A HOUSE NEXT DOOR WHICH MR BRADBURY OWNS BUT RENTS TO SOMEONE ELSE BETWEEN THE TWO HOUSES POLICE SEIZED 25 PLANTS ACCORDING TO MICHAEL RZYMEK ASSISTANT PROSECUTING ATTORNEY AT THE FRANKLIN COUNTY OHIO PROSECUTOR'S OFFICE ALTHOUGH NO CHARGES HAVE BEEN FILED MR BRADBURY 59 YEARS OLD DECIDED TO RETIRE TO AVOID ANY ADVERSE EFFECT ON THE COMPANY RESULTING FROM THE MAY 14 RAID CHAIRMAN AND CHIEF EXECUTIVE OFFICER DANIEL E EVANS SAID IN A NEWS RELEASE A GRAND JURY IS INVESTIGATING THE CASE A COMPANY SPOKESMAN SAID MR BRADBURY DECLINED TO COMMENT BOB EVANS A RESTAURANT CHAIN THAT ALSO MAKES SAUSAGES NAMED DONALD J RADKOSKI 38 AS INTERIM CHIEF FINANCIAL OFFICER AND TREASURER MR RADKOSKI RETAINS HIS CURRENT TITLES AS VICE PRESIDENT DIRECTOR OF FINANCE AND ASSISTANT TREASURER 9305210144 930521 LETTERS TO THE EDITOR PET SCANS PROVIDE BEST DIAGNOSTIC RESULTS POSITRON EMISSION TOMOGRAPHY PET HAS BEEN PROVIDING THIS ASSESSMENT FOR YEARS NONINVASIVELY WITH 95 TO 98 SENSITIVITY AND 95 TO 98 SPECIFICITY THE HIGHEST RATING OF ANY DIAGNOSTIC MODALITY IN ADDITION A PET SCAN AT A COST OF 1200 IS THE SAME COST MENTIONED IN THE ARTICLE FOR THE NEW MRI PROCEDURE PET ALSO ROUTINELY PROVIDES INFORMATION ON THE EXTENT OF ARTERIAL BLOCKAGE THROUGH FUNCTIONAL DATA ON PERFUSION AND METABOLISM WHILE CORRECTING FOR THE HEART'S MOTION MRI CANNOT DO THIS AND DOES NOT EVEN COME CLOSE TO PET OR EVEN CONVENTIONAL ANGIOGRAPHY AS A PREDICTOR OF CORONARY ARTERY DISEASE IN EITHER MEN OR WOMEN I CAN SEE NO REASON TO INTRODUCE OR TOUT A NEW PROCEDURE BY MRI WHEN IT IS CLEARLY DEFICIENT TO ALREADY EXISTING PROCEDURES AT BASICALLY THE SAME COSTS WITH PET SINCE PET ALSO PROVIDES AN ESTIMATE OF SEVERITY OF THE ARTERIAL OBSTRUCTION WHICH THE MRI CANNOT IT CAN BE USED AS WELL AS A SUBSTITUTE FOR ARTERIOGRAPHY IN PATIENTS WITH MILD TO MODERATE DISEASE AMENABLE TO MEDICINAL THERAPY COST SAVINGS WILL BE SUBSTANTIAL AND QUALITY OF CARE DOES NOT DECREASE BUT IS CONSIDERABLY INCREASED SCREENING ASYMPTOMATIC INDIVIDUALS WITH A HISTORY OF SMOKING HYPERTENSION HYPERCHOLESTEROLEMA OR A STRONGLY POSITIVE FAMILY HISTORY FOR CORONARY DISEASE HAS GENERALLY BEEN CONSIDERED INAPPROPRIATE FOR SEVERAL REASONS THE LIMITED DIAGNOSTIC YIELD OF OLDER NONINVASIVE TESTING DID NOT PROVIDE GOOD DIFFERENTIATION BETWEEN NORMAL AND ABNORMAL HOWEVER TECHNOLOGIES FOR ACCURATE NONINVASIVE DIAGNOSIS SUCH AS PET HAVE EVOLVED SUFFICIENTLY TO RECONSIDER THE POTENTIAL IMPACT OF THIS APPROACH SCREENING ASYMPTOMATIC HIGHRISK PERSONS BY PET IS THEORETICALLY LESS COSTLY AND RESULTS IN LOWER MORTALITY THAN A POLICY OF NO TESTING OR TREATMENT 9305210142 930521 MARKETING & MEDIA CBS TO ADD SHOWS RETOOL TWO OTHERS FOR NEW SEASON BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CBS THE NO 1 RATED NETWORK FOR THE PAST TWO SEASONS IS ADDING SIXANDAHALF HOURS OF SHOWS COMPOSED OF FIVE SITUATION COMEDIES THREE DRAMAS AND A NEWS MAGAZINE WHILE MAKING CHANGES ON FIVE NIGHTS OF THE WEEK DESPITE ITS TOP OVERALL RANKING CBS INC'S NETWORK CONTINUES TO TRAIL IN THE RATINGS ON WEDNESDAY THURSDAY AND FRIDAY NIGHTS WHERE MOST OF THE CHANGES ARE BEING MADE FOR THE 199394 SEASON CBS IS ALSO RADICALLY RETOOLING TWO SHOWS IN EFFORTS TO ATTRACT LARGER AUDIENCES BUT CBS WHICH ALWAYS HAD THE OLDEST VIEWERS IS DOING LITTLE TO ATTRACT A YOUNGER AUDIENCE UNLIKE RIVALS CAPITAL CITIES/ABC INC AND GENERAL ELECTRIC CO'S NBC UNIT IN A REFLECTION OF THE DIFFICULTY IN SUCCEEDING WITH NEW SERIES CBS ENTERTAINMENT PRESIDENT JEFF SAGANSKY SAID THAT NO NEW SERIES RECEIVED A TRADITIONAL ORDER FOR 13 EPISODES INSTEAD THE SHOWS RECEIVED ORDERS OF BETWEEN SIX AND EIGHT EPISODES THAT WILL ENABLE THE NETWORK TO SAVE MONEY ON PRODUCTION COSTS IF THE NEW SERIES GET CANCELED IN THE FIRST FEW MONTHS AS IS OFTEN THE CASE THE CBS SERIES NOT RETURNING ARE BOB STARRING BOB NEWHART WHICH MAY BE A MIDSEASON REPLACEMENT MAJOR DAD GOLDEN PALACE AND THE HOURLONG REALITY SHOW TOP COPS ALSO GONE IS THE CBS NEWS PROGRAM STREET STORIES MR SAGANSKY SAID AT A NEWS CONFERENCE YESTERDAY THAT THE PROGRAM WILL CONTINUE IN PRODUCTION AND IS BEING OVERHAULED WHETHER ED BRADLEY WILL CONTINUE AS HOST OF THE SHOW HASN'T BEEN DECIDED BY HIM CBS SAID AMONG CBS'S COMEDY SHOWS ARE DAVE'S WORLD STARRING HARRY ANDERSON AND BASED ON HUMORIST DAVE BARRY'S SYNDICATED COLUMNS THE TROUBLE WITH LARRY WITH BRONSON PINCHOT AS A MAN PRESUMED DEAD WHO RESURFACES AND MOVES IN WITH HIS WIFE AND NEW FAMILY THE NANNY A TYPICAL FISHOUTOFWATER SITCOM ABOUT A GIRL FROM THE OTHER SIDE OF THE TRACKS WHO MOVES IN WITH AN UPSCALE MANHATTAN FAMILY AND IT HAD TO BE YOU STARRING FAYE DUNAWAY AND ROBERT URICH ABOUT OPPOSITES WHO ATTRACT THE TWO SERIES BEING OVERHAULED ARE LOVE AND WAR AND HEARTS AFIRE LOVE AND WAR WHICH GETS A NEW FEMALE LEAD WILL BECOME MORE OF AN ENSEMBLE SHOW AND FOCUS LESS ON THE COUPLE'S COURTSHIP HEARTS AFIRE DROPS ITS FOCUS ON POLITICS AND MOVES OUT OF WASHINGTON INTO A SMALL TOWN WHERE ITS TWO LEAD CHARACTERS EDIT A NEWSPAPER LIKE ABC CBS HAS NO SOCALLED REALITY SHOWS ON ITS NEW SCHEDULE AND NBC HAS ONLY ONE UNSOLVED MYSTERIES NETWORK OFFICIALS WHO PREVIOUSLY LOADED UP ON SUCH SHOWS NOW SAY NEWS PROGRAMMING SELLS BETTER THAN REALITY SHOWS NEXT SEASON CBS NEWS WILL PRODUCE THREE HOURS OF PRIMETIME PROGRAMMING NBC NEWS WILL SUPPLY TWO HOURS AND ABC NEWS WILL PRODUCE AT LEAST THREE HOURS WITH A FOURTH IN DEVELOPMENT 9305210141 930521 CORPORACION BANESTO'S RESULTS MADRID CORPORACION BANESTO THE INDUSTRIAL HOLDING COMPANY OF THE BANK BANCO ESPANOL DE CREDITO BANESTO REPORTED CONSOLIDATED PRETAX PROFIT OF 147 MILLION PESETAS 119 MILLION FOR THE FIRST QUARTER OF 1993 COMPARED WITH A LOSS OF 468 BILLION PESETAS A YEAR EARLIER CORPORACION BANESTO ATTRIBUTED THE IMPROVEMENT IN ITS RESULTS TO A DECLINE IN THE GROUP'S DEBT AND AN INCREASE IN EXTRAORDINARY GAINS 9305210140 930521 CHINA ECONOMY IS WORLD'S NO 3 IMF CALCULATES BY ASRA Q NOMANI AND ROBERT S GREENBERGER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CHINA HAS THE WORLD'S THIRDLARGEST ECONOMY TRAILING ONLY THE US AND JAPAN AND MOVING AHEAD OF SUCH ECONOMIC POWERS AS GERMANY CANADA AND BRITAIN BASED ON A NEW METHOD OF CALCULATION BY THE INTERNATIONAL MONETARY FUND THE REEVALUATION OF CHINA'S PLACE IN THE WORLD ECONOMY IMPARTS EVEN GREATER SIGNIFICANCE TO PRESIDENT CLINTON'S DECISION EXPECTED IN THE NEXT FEW DAYS ON CHINA'S TRADING STATUS IT IS WIDELY EXPECTED THAT MR CLINTON FOLLOWING CONSULTATIONS WITH CONGRESS WILL GRANT A ONEYEAR RENEWAL OF CHINA'S MOST FAVORED NATION TRADING STATUS WHICH GIVES A COUNTRY THE SAME PRIVILEGES AND TARIFF LEVELS ENJOYED BY MOST US TRADING PARTNERS BUT PRESIDENT CLINTON AT THE SAME TIME WILL TELL BEIJING THAT HE EXPECTS IT TO MAKE SIGNIFICANT IMPROVEMENT IN ITS BEHAVIOR CONCERNING HUMAN RIGHTS TRADE PRACTICES AND LIMITATIONS ON CERTAIN WEAPONS SALES THE IMF'S REVIEW DISCARDED ITS FORMER METHODS IN WHICH NATIONAL OUTPUT MEASURED THE VALUE OF GOODS AND SERVICES IN DOLLAR TERMS APPLYING INTERNATIONAL EXCHANGE RATES UNDER THE NEW METHOD OUTPUT IS VALUED IN TERMS OF THE LOCAL CURRENCY'S PURCHASING POWER COMPARED WITH THE PURCHASING POWER OF OTHER CURRENCIES BASED ON THE NEW METHODOLOGY CHINA'S GROSS DOMESTIC PRODUCT IN 1992 WAS 17 TRILLION RATHER THAN THE 440 BILLION CALCULATED UNDER THE OLD SYSTEM GROSS DOMESTIC PRODUCT IS THE MEASURE OF GOODS AND SERVICES PRODUCED BY A COUNTRY AN IMF SPOKESMAN SAID THE ORGANIZATION WAS PROMPTED TO REEVALUATE NATIONAL ECONOMIES BECAUSE IT HAD BECOME APPARENT THAT THE OLD WAY OF ADDING UP NUMBERS DOESN'T GIVE US A PARTICULARLY GOOD PICTURE THE ECONOMIST MAGAZINE DISCLOSED THE NEW METHODOLOGY IN ITS CURRENT EDITION THE NEW CALCULATION ALSO BOOSTS THE STATUS OF DEVELOPING COUNTRIES ACCORDING TO AN ECONOMIC OUTLOOK REPORT THE IMF RECENTLY RELEASED UNDER THE NEW METHODOLOGY INDUSTRIAL COUNTRIES' SHARE OF TOTAL WORLD OUTPUT DROPPED IN 1992 TO 544 FROM 759 CALCULATED UNDER THE OLD METHOD DEVELOPING COUNTRIES' SHARE INCREASED IN 1992 TO 344 FROM 203 THE PACE OF CHINA'S ECONOMIC GROWTH AND THE GROWING RECOGNITION OF ITS IMPORTANCE UNDERSCORES THE DILEMMA MR CLINTON FACES OVER CHINA A DECISION TO RENEW MOST FAVORED NATION STATUS WITH CAVEATS WOULD MARK THE FIRST TIME FOLLOWING A THREEYEAR CONGRESSIONAL EFFORT THAT THE US HAS PLACED CONDITIONS ON CHINA'S MFN STATUS SINCE 1990 CONGRESS PASSED LEGISLATION CALLING FOR SUCH CONDITIONS BUT PRESIDENT BUSH VETOED THE MEASURES CONGRESS AGAIN APPROVED THE BILL THIS YEAR BUT LAWMAKERS HAVE SAID THEY PREFER TO HAVE THE WHITE HOUSE TAKE THE LEAD AT THE OPENING ROUND OF CONGRESSIONAL HEARINGS YESTERDAY ON CHINA'S TRADING STATUS DONALD ANDERSON THE HEAD OF THE USCHINA BUSINESS COUNCIL WHICH REPRESENTS MORE THAN 200 US COMPANIES WARNED THAT WITHDRAWING OR PLACING CONDITIONS ON CHINA'S MFN STATUS WOULD RESULT IN OVER 150000 US LOST JOBS 8 BILLION IN LOST EXPORTS AT LEAST 14 BILLION IN HIGHER IMPORT PRICES FOR AMERICAN CONSUMERS BUT WHEN PRESSED BY REP TOM LANTOS D CALIF MR ANDERSON SAID HE WAS PAINTING A WORSTCASE SCENARIO AND DIDN'T HAVE DOCUMENTATION TO BACK UP HIS CLAIMS 9305210139 930521 MONEY FUND ASSETS INCREASED 858 BILLION DURING LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE 858 BILLION TO 59255 BILLION FROM 58397 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 632 RETAIL MONEY MARKET MUTUAL FUNDS ROSE 39 BILLION TO 38987 BILLION THE TRADE GROUP SAID ASSETS OF 396 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY ROSE 314 BILLION TO 30878 BILLION ASSETS OF 236 RETAIL TAXEXEMPT FUNDS ROSE 7621 MILLION TO 8109 BILLION ASSETS OF THE 266 INSTITUTIONAL MONEY MARKET FUNDS ROSE 468 BILLION TO 20268 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 214 TAXABLE MONEY MARKET FUNDS ROSE 469 BILLION TO 18201 BILLION ASSETS OF 52 TAXEXEMPT FUNDS FELL 62 MILLION TO 2067 BILLION 9305210138 930521 TECHNOLOGY & HEALTH SPECTRUM STOCK DROPS AS AT&T DISCUSSES PACT BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL SPECTRUM INFORMATION TECHNOLOGIES INC'S SHARES PLUNGED YESTERDAY AS ITS NEW LICENSEE AMERICAN TELEPHONE & TELEGRAPH CO THREW WATER ON THE LITTLE COMPANY'S CLAIM THAT IT WOULD RULE THE WIRELESS DATA INDUSTRY SPECTRUM'S STOCK HAD EXPERIENCED ONE OF THE BIGGEST RUNUPS IN RECENT MEMORY AFTER AT&T LAST WEEK SIGNED A BROAD LICENSING AGREEMENT WITH SPECTRUM COVERING AT&T AND ITS AFFILIATES SPECTRUM HOLDS PATENTS FOR SENDING DATA OVER CELLULAR PHONE NETWORKS THERE HAS BEEN FRENZIED TRADING IN SPECTRUM'S SHARES SINCE MAY 11 WHEN SPECTRUM ANNOUNCED THE AGREEMENT WITH AT&T SPECTRUM'S SHARES SOARED FROM JUST OVER 4 A SHARE A WEEK AGO TO AS HIGH AS 13125 YESTERDAY MORNING IN OVERTHECOUNTER TRADING BUT THE STOCK WENT INTO A FREE FALL DURING THE DAY AFTER A REPORT ON CNBC CABLE TELEVISION RAISED DOUBTS ABOUT SPECTRUM'S PROJECTIONS OF THE VALUE OF THE AT&T DEAL SPECTRUM CLOSED YESTERDAY AT 6 A SHARE A 49 PLUNGE ON VOLUME OF 344 MILLION SHARES23 TIMES SPECTRUM'S NORMAL VOLUME MORE THAN 60 MILLION SHARES HAVE TRADED SINCE THE ANNOUNCEMENT LATER IN THE DAY AT&T'S CHIEF LICENSING ATTORNEY D LAURENCE PADILLA DISPUTED SPECTRUM PRESIDENT PETER CASERTA'S CLAIM THAT THE AT&T AGREEMENT WOULD GENERATE HUNDREDS OF MILLIONS OF DOLLARS IN REVENUE OVER THE NEXT SEVERAL YEARS IT'S WORTH A FEW MILLION OVER SEVERAL YEARS MR PADILLA SAID MR CASERTA SAID HE BASED HIS NUMBERS ON AT&T'S ASSURANCES TO HIM IN NEGOTIATIONS AND TO NEWS OUTLETS THAT THERE WOULD BE ONE BILLION WIRELESS MODEMS IN USE BY THE YEAR 2000 HE CLAIMED THAT IN ONE NEGOTIATING SESSION WITH AT&T HAIG SARKISSIAN AN EXECUTIVE WITH AT&T MICROELECTRONICS HAD DRAWN NUMBERS ON A BLACKBOARD INDICATING THAT AT&T EXPECTED ITS CHIP SALES INCORPORATING SPECTRUM'S DESIGN TO QUADRUPLE EVERY YEAR FOR THE REST OF THE DECADE OUR COMPUTER TOLD US THAT BASED ON AT&T'S CURRENT VOLUME HE WAS PROJECTING 819 MILLION MODEM CHIPS MR CASERTA SAID THAT'S HOW WE CAME UP WITH HUNDREDS OF MILLIONS OF DOLLARS ASKED ABOUT THIS MR PADILLA SAID THIS WAS ALL NEGOTIATIONS NEGOTIATING HYPE BOTH SIDES START WITH HYPE CARDS MOVE TO REALITY AND THEN YOU GO TO THE BOTTOM LINE AT&T'S MR SARKISSIAN DISPUTED MR CASERTA'S DESCRIPTION OF THE NEGOTIATING SESSION WHILE HE RECALLED SAYING THAT THE PERCENTAGE OF MODEMS SHIPPED WILL DOUBLE IN THE SHORT TERM HE ADDED THERE WAS NEVER ANY STATEMENT MADE BY AT&T THAT ITS OWN SHIPMENTS WOULD HIT ALMOST A BILLION MODEM CHIPS IN 1992 HE SAID THE TOTAL NUMBER OF MODEM CHIPS SALES IN THE MARKET SEGMENT WHERE AT&T PARTICIPATED WAS TWO MILLION UNITS AND THE MAJORITY OF THESE WERE FOR DESKTOP COMPUTER MODEMS CAN THINGS QUADRUPLE EVERY YEAR FOR EIGHT YEARS THAT'S IMPOSSIBLE MR SARKISSIAN SAID HE SAID A RECENT INDUSTRY REPORT INDICATED THERE WILL BE 12 MILLION MODEM CHIP SETS SOLD BY THE YEAR 1997 WE DON'T KNOW HOW MANY OF THESE WILL BE WIRELESS HE SAID BUT SPECTRUM'S BETTING THAT THE VAST MAJORITY WILL BE WIRELESS AND IS TAKING ON LARGE AND SMALL COMPANIES THAT AIM TO SELL EQUIPMENT THAT SENDS DATA OVER THE CELLULAR SYSTEMS MR CASERTA SAID ROCKWELL INTERNATIONAL CORP'S CHIP UNIT HAS ASKED TO REVIEW SPECTRUM'S PATENTS NUMEROUS AT&T UNITS ARE ALREADY USING SPECTRUM TECHNOLOGY THE COMPANY'S SAFARI LAPTOP COMPUTER AND A PORTABLE DATA COMMUNICATIONS DEVICE MADE BY AFFILIATE EO INC EACH INCORPORATE SPECTRUM SOFTWARE DESIGNS AT&T'S LICENSE ALSO COVERS MCCAW CELLULAR COMMUNICATIONS CO IN WHICH AT&T PLANS TO BUY A 33 STAKE 9305210137 930521 WHO'S NEWS EQUITABLE COS EQUITABLE COS NEW YORK VENKATESHWAREN RAJA WAS NAMED EXECUTIVE VICE PRESIDENT CAPITAL MARKETS GROUP A NEW POSITION AT THE EQUITABLE REAL ESTATE INVESTMENT MANAGEMENT INC UNIT OF THIS DIVERSIFIED FINANCIAL SERVICES COMPANY MR RAJA 41 YEARS OLD WHO HAS DEVELOPED THE CAPITAL MARKETS GROUP FOR EQUITABLE REAL ESTATE PREVIOUSLY WAS SENIOR VICE PRESIDENT 9305210136 930521 BUSINESS BRIEF O&Y ADMINISTRATOR TO OPPOSE MOTION FOR ZUCCOTTI TO LEAD NEW YORK OLYMPIA & YORK DEVELOPMENTS LTD'S CANADIAN ADMINISTRATOR SAID HE WILL OPPOSE AT A BANKRUPTCY COURT HEARING TODAY A CITIBANK MOTION TO NAME AN OFFICER TO LEAD O&Y'S US SUBSIDIARY CITIBANK HAS PROPOSED NAMING JOHN ZUCCOTTI WHO IS PRESIDENT OF THE US SUBSIDIARY OLYMPIA & YORK COS USA AS THE RESPONSIBLE OFFICER OF THE UNIT AT LEAST UNTIL A PERMANENT BOARD CAN BE APPOINTED THE NAMING OF A NEW BOARD FOR O&Y USA HAS BEEN DELAYED BY A DISPUTE BETWEEN THE COMPANY'S CREDITORS AND EQUITY HOLDERS THE ADMINISTRATOR ROBERT LOWE OF ACCOUNTING FIRM COOPERS & LYBRAND SAID THE APPOINTMENT OF MR ZUCCOTTI IS ENTIRELY UNNECESSARY AND MY CONSENT TO IT WOULD CONSTITUTE TOTAL ABDICATION OF MY DUTIES UNDER THE RESTRUCTURING PLAN FOR O&Y DEVELOPMENTS WHICH EMERGED FROM CANADIAN BANKRUPTCY COURT PROTECTION IN MARCH AS THE NEW HEAD OF O&Y DEVELOPMENTS MR LOWE REPRESENTS THE EQUITY HOLDERS OF THE US SUBSIDIARY COMPOSED MAINLY OF CANADIAN BANKS MR LOWE SAID IN AN INTERVIEW THAT THE CREDITORS AND EQUITY HOLDERS ARE ATTEMPTING TO REACH A COMPROMISE ON THE O&Y USA BOARD I BELIEVE THE PARTIES ARE VERY CLOSE TO AN AGREEMENT TO PUTTING A BOARD IN PLACE IN WHICH ALL THE PARTIES HAVE CONFIDENCE HE SAID O&Y USA WHICH IS INSOLVENT IS ATTEMPTING TO RESTRUCTURE SOME 53 BILLION IN DEBT WITHOUT FILING FOR CHAPTER 11 OF THE US BANKRUPTCY CODE 9305210135 930521 GENTEX DONNELLY SETTLEMENT ZEELAND MICH GENTEX CORP AND DONNELLY CORP BOTH MAKERS OF AUTOMOTIVE MIRRORS SAID THEY REACHED AN OUTOFCOURT SETTLEMENT ON TWO PATENTS IN DISPUTE TERMS OF THE AGREEMENT WEREN'T DISCLOSED BASED IN HOLLAND MICH DONNELLY SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT IT WILL TAKE A CHARGE AGAINST FOURTHQUARTER EARNINGS RELATED TO AN APRIL COURT DECISION THE JUDGE AWARDED GENTEX 22 MILLION IN A LAWSUIT AGAINST DONNELLY FOR VIOLATING A PATENT FOR CHEMICAL ELECTROCHROMATIC MIRROR TECHNOLOGY 9305210134 930521 LAW LAW BARRING SUICIDE AID BY DOCTORS IS THROWN OUT DETROIT A MICHIGAN JUDGE RULED THAT A STATE LAW PROHIBITING DOCTORS FROM HELPING TERMINALLY ILL PATIENTS COMMIT SUICIDE WAS UNCONSTITUTIONAL WAYNE COUNTY CIRCUIT COURT JUDGE CYNTHIA STEPHENS IN DETROIT DECIDED THAT THE LAW VIOLATED MICHIGAN'S CONSTITUTION BECAUSE IT WAS PASSED WITHOUT A PUBLIC HEARING AND HAD MORE THAN ONE OBJECTIVE THE LAW WHICH TOOK EFFECT IN FEBRUARY CREATED A COMMISSION TO STUDY DEATH AND DYING BUT ALSO MADE ASSISTING SUICIDE PUNISHABLE BY FOUR YEARS IN PRISON AND A 2000 FINE THE LAW WAS CHALLENGED BY SEVEN DOCTORS AND TWO TERMINALLY ILL PATIENTS THE PLAINTIFFS ALLEGED THAT IT VIOLATED THEIR PRIVACY AND DUEPROCESS RIGHTS UNDER THE STATE'S CONSTITUTION PAUL DENENFELD LEGAL DIRECTOR FOR THE AMERICAN CIVIL LIBERTIES UNION IN MICHIGAN WHICH REPRESENTED THE PLAINTIFFS SAID THE LAW WAS THE FIRST OF ITS KIND TO BE SPECIFICALLY AIMED AT DOCTORS MR DENENFELD SAID THE LAW WAS POORLY WRITTEN BECAUSE THE LEGISLATURE WAS SO FIXATED WITH DR JACK KEVORKIAN THAT IT FAILED TO FOLLOW PROPER PROCEDURES FOR LAWMAKING DR KEVORKIAN A MICHIGAN RESIDENT WHO IS NOT A PLAINTIFF HAS DRAWN NATIONAL ATTENTION FOR ASSISTING IN 16 SUICIDES SINCE 1990 HE WAS ARRESTED LAST WEEK FOR ALLEGEDLY ASSISTING IN THE SUICIDE OF A MAN WITH CANCER MARION GORTON A SPOKESWOMAN FOR MICHIGAN'S ATTORNEY GENERAL SAID THE OFFICE HASN'T YET DECIDED WHETHER IT WILL APPEAL THE RULING OR ASK THE LEGISLATURE TO REWRITE THE LAW 9305210133 930521 FIRST UNION BID TO BUY FIRST AMERICAN METRO IS CLEARED BY THE FED WASHINGTON THE FEDERAL RESERVE BOARD UNANIMOUSLY APPROVED FIRST UNION CORP'S APPLICATION TO PURCHASE FIRST AMERICAN METRO CORP A MERGER THAT WILL MAKE FIRST UNION THE SECONDLARGEST BANK IN THE WASHINGTON AREA THE 453 MILLION TRANSACTION WILL END TWO YEARS OF UNCERTAINTY ABOUT THE OWNERSHIP OF FIRST AMERICAN A UNIT OF FIRST AMERICAN BANKSHARES INC WHICH WAS SECRETLY ACQUIRED BY BCCI HOLDINGS LUXEMBOURG SA IN MARCH 1991 THE FED ORDERED BCCI TO SELL THE FIRST AMERICAN SHARES IT HAD ACQUIRED ILLEGALLY AND IN JULY 1991 REGULATORS CLOSED BCCI OFFICES AROUND THE WORLD AFTER LEARNING OF IRREGULAR TRANSACTIONS AND MISSING FUNDS FIRST UNION BASED IN CHARLOTTE NC HAS ASSETS OF ABOUT 632 BILLION AND CONTROLS A STRING OF BANKS FROM FLORIDA TO MARYLAND FIRST AMERICAN METRO HAS ASSETS OF 45 BILLION THE FED'S ORDER APPLIED TO FIRST AMERICAN BANKS IN VIRGINIA AND MARYLAND FIRST UNION ALREADY HAS PERMISSION FOR ITS DOMINION BANK OF WASHINGTON SUBSIDIARY TO MERGE WITH FIRST AMERICAN BANK IN THE DISTRICT OF COLUMBIA THE FED SAID FIRST UNION WOULD BECOME THE THIRDLARGEST BANKING ORGANIZATION IN VIRGINIA AND THE NINTHLARGEST IN MARYLAND FIRST UNION AGREED TO DIVEST TWO BRANCHES IN THE ROCKBRIDGELEXINGTON MARKET IN SOUTHWESTERN VIRGINIA IN ORDER TO AVOID VIOLATING ANTITRUST LAWS 9305210132 930521 CIT GETS REVOLVING CREDIT LINE NEW YORK CIT GROUP HOLDINGS INC AN ASSETBASED LENDING COMPANY SAID IT RECEIVED A THREEYEAR 11 BILLION REVOLVING LINE OF CREDIT CHASE MANHATTAN BANK NA ARRANGED THE CREDIT FACILITY AND WILL ADMINISTER IT CIT SAID IT ORIGINALLY INTENDED TO OBTAIN 750 MILLION BUT THE FACILITY WAS OVERSUBSCRIBED BY NEARLY 50 THE CREDIT LINE IS FOR GENERAL CORPORATE USE CIT WITH MORE THAN 13 BILLION IN ASSETS IS 60OWNED BY JAPAN'S DAIICHI KANGYO BANK LTD AND 40 BY CHEMICAL BANKING CORP 9305210131 930521 GLAXO'S PRESCRIPTION GET BACK TO BASICS NEW CEO SAYS DRUG MAKER TO STRESS INNOVATION BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL LONDON RICHARD SYKES THE CEREBRAL MICROBIOLOGIST RECENTLY INSTALLED AS CHIEF EXECUTIVE OF GLAXO HOLDINGS PLC BRINGS A DOWNTOEARTH PERSPECTIVE TO HIS NEW JOB SINCE TAKING THE HELM IN MIDMARCH DR SYKES HAS USHERED IN A NEW CONCILIATORY STYLE IN DELICATE DEALINGS WITH REGULATORY AGENCIES AND GOVERNMENT HEALTHCARE AUTHORITIES UNDER HIS PREDECESSOR ERNEST MARIO GLAXO RAISED EYEBROWS BY PICKING LOUD PUBLIC FIGHTS WITH OPPONENTS RANGING FROM EUROPEAN GOVERNMENTS TO THE US FOOD AND DRUG ADMINISTRATION LIKE MANY GLAXO EXECUTIVES DR SYKES WORRIES THAT THE PUBLIC BICKERING COMBINED WITH SPECULATION ABOUT A POSSIBLE FORAY INTO NONPRESCRIPTION MEDICINES SPREADS CONFUSION ABOUT GLAXO'S STRATEGY MY JOB IS TO MAKE SURE THAT EVERYONE WORKING FOR GLAXO HAS A VERY CLEAR VISION OF WHERE THE COMPANY IS GOING AND HOW WE'RE GOING TO GET THERE DR SYKES SAID IN AN INTERVIEW HIS VISION IS BACK TO BASICS DEVELOPING INNOVATIVE MEDICINES DISPELLING DOUBTS ABOUT STRATEGY HE ADDS IS ESPECIALLY IMPORTANT AMID THE CRACKDOWN ON HEALTHCARE SPENDING THIS ISN'T GOING TO GO AWAY HE SAYS PEOPLE HAVE TO FACE UP TO THAT FACT OR THERE'S GOING TO BE ABSOLUTE BLOODY CHAOS COSTCONTAINMENT MANIA DR SYKES INSISTS SHOULD PLAY TO GLAXO'S STRENGTH BY PLACING A GREATER PREMIUM ON INNOVATION THE PAST WAS MORE DRIVEN BY MARKETING AND COMMERCIAL CONSIDERATIONS BECAUSE YOU COULD BRING MANY NEW DRUGS TO MARKET EVEN IF THEY WERE THE THIRD OR FOURTH PRODUCT IN THE SAME THERAPEUTIC CLASS THE FUTURE WON'T BE LIKE THAT DR SYKES SAYS COMPANIES ARE GOING TO HAVE TO COME UP WITH TRULY NOVEL MEDICINES ONES THAT CAN BE DIFFERENTIATED AND WHICH CLEARLY PRODUCE A COST BENEFIT TO THE GOVERNMENTS THAT ARE GOING TO BUY THEM INNOVATION MAY BE THE SUREST ROUTE TO SUCCESS BUT IT IS ALSO A BIG GAMBLE ON THE PROWESS OF MERCURIAL RESEARCH LABS INDEED MANY OF THE WORLD'S MOST PROLIFIC RESEARCHBASED COMPANIES HAVE BEEN BUYING INTO SAFER FIELDS SUCH AS OVERTHECOUNTER DRUGS TO SPREAD THEIR RISKS SPURNING SUCH HEDGES DR SYKES SAYS REINVESTMENT OF PROFITS FROM EARLIER BLOCKBUSTER DRUGS HAS LEFT GLAXO WITH THE INDUSTRY'S BIGGEST RESEARCH PROGRAM IT REFLECTS EXACTLY WHERE WE'RE GOING TO CONTINUE TO PUT OUR EFFORT IF YOU DON'T DISCOVER NOVEL DRUGS THE REST OF IT IS MEANINGLESS HE SAYS IF YOU DO THE REST OF IT TAKES CARE OF ITSELF GLAXO'S RESEARCH AND DEVELOPMENT SPENDING HAS MORE THAN QUADRUPLED TO AN ESTIMATED 735 MILLION 113 BILLION THIS YEAR SINCE DR SYKES BECAME RESEARCH DIRECTOR IN 1987 ONE OF HIS MOST IMPORTANT ACHIEVEMENTS HAS BEEN ASSEMBLING A DRUG DEVELOPMENT JUGGERNAUT ENVIED FOR ITS SPEED IN GETTING NEW PRODUCTS THROUGH THE REGULATORY PROCESS DEVELOPMENT EXPERTISE HE SAYS IS THE MAIN REASON BIG DRUG MAKERS WILL MAINTAIN THEIR DOMINANCE DESPITE CHANGES THAT ARE EXPECTED TO SHAKE UP THE INDUSTRY OVER THE NEXT FEW YEARS GETTING A NEW DRUG TO MARKET IS THE MOST HIGHLY REGULATED PROCESS IN THE WORLD DR SYKES SAYS BUILDING A FULLFLEDGED DEVELOPMENT PROGRAM IS SO EXPENSIVE THAT IT'S ALMOST IMPOSSIBLE FOR SMALL FLEDGLING COMPANIES TO REPLICATE DOZENS OF STARTUP DRUG AND BIOTECH COMPANIES HAVE TURNED OVER DEVELOPMENT TO ESTABLISHED DRUG MAKERS IN EXCHANGE FOR A SHARE OF THE DRUG'S EVENTUAL PROFITS UNDER ONE SUCH AGREEMENT GLAXO IS FUNDING AND MANAGING CLINICAL TRIALS OF AN ASTHMA MEDICINE DISCOVERED BY BRITISH BIOTECHNOLOGY GROUP PLC AND WILL RECEIVE WORLDWIDE MARKETING RIGHTS IF THE DRUG WINS REGULATORY APPROVAL A SIMILAR PACT WITH CANADA'S BIOCHEM PHARMA INC COVERS DEVELOPMENT OF A DRUG CALLED 3TC FOR THE TREATMENT OF ACQUIRED IMMUNE DEFICIENCY SYNDROME AND HEPATITIS HOWEVER BIG COMPANIES OFTEN FIND THEIR SIZE A HANDICAP IN PURE MEDICAL RESEARCH DR SYKES HAS FORGED A WEB OF RESEARCH PARTNERSHIPS WITH BIOTECHNOLOGY FIRMS FROM TORONTO TO SEATTLE AND FROM SOUTHERN CALIFORNIA TO MELBOURNE THE BIGCOMPANY ATMOSPHERE CAN BE A PROBLEM IN RESEARCH AND TO MANAGE IT EFFICIENTLY YOU WANT TO KEEP INHOUSE DISCOVERY AT A CERTAIN SIZE DR SYKES SAYS IT WOULD BE CRAZY FOR GLAXO TO RECRUIT NEW SCIENTISTS AND PLUNGE INTO EVERY NEW TECHNOLOGY THAT EMERGED COOPERATION GIVES US TREMENDOUS FLEXIBILITY MOREOVER SCIENTISTS AT BIG COMPANIES THRIVE ON PERIODIC ASSIGNMENTS IN THE VIBRANT MADHOUSE ATMOSPHERE OF STARTUP FIRMS HE SAYS PEOPLE AT THOSE COMPANIES ARE DRIVEN BY THE SCIENCE THEY'RE DOING THEY GET TO WORK EARLY IN THE MORNING AND STAY UNTIL LATE AT NIGHT IT'S PERFECT BUT GLAXO REMAINS CAUTIOUS ABOUT THE NUMBER OF COLLABORATIONS IT CAN AFFORD THE PROBLEM ISN'T MONEY AS MUCH AS A CARDINAL RULE LAID DOWN BY DR SYKES NO INVESTMENT IN PROGRAMS WITHOUT DIRECT JOINT PARTICIPATION OF GLAXO'S OWN SCIENTISTS YOU HAVE TO HAVE INVOLVEMENT OF YOUR OWN PEOPLE BECAUSE IF YOU HAND OUT MONEY WITHOUT INVOLVEMENT YOU MIGHT AS WELL SAY GOODBYE TO IT HE WARNS GLAXO'S RESEARCH ALLIES SHARE A FEW COMMON DENOMINATORS ALL HAVE PARLAYED CUTTINGEDGE TECHNIQUES OF MODERN MOLECULAR BIOLOGY INTO INSIGHTS ABOUT THE ORIGINS AND WORKINGS OF MAJOR DISEASES WITH MOLECULAR MODELS AS A STARTING POINT JOINT RESEARCH TEAMS COOPERATE IN DESIGNING DRUGS THAT CAN INTERFERE AT SOME STAGE IN THE DISEASE PROCESS GLAXO AND TORONTOBASED ALLELIX BIOPHARMACEUTICALS INC ARE TARGETING OSTEOPOROSIS A WEAKENING OF THE BONES WHILE COLLABORATION WITH ICOS CORP IN SEATTLE INVOLVES AGENTS AGAINST INFLAMMATORY DISEASES SUCH AS ASTHMA THE BRITISH CONCERN AND AUSTRALIA'S BIOTA HOLDINGS LTD ARE ATTEMPTING TO DESIGN MOLECULES TO BLOCK ACTIVITY OF AN ENZYME THAT ALLOWS INFLUENZA VIRUSES TO ESCAPE FROM AN INFECTED CELL A LINK WITH LIGAND PHARMACEUTICALS INC OF SAN DIEGO TARGETS CORONARY DISEASE GLAXO HAS JOINED FORCES WITH ANOTHER SAN DIEGO FIRM AMYLIN PHARMACEUTICALS INC TO INVESTIGATE THE ROLE OF A NEWLY DISCOVERED HORMONE IN ADULTONSET DIABETES GLAXO'S OLDEST RESEARCH ALLY IS GILEAD SCIENCES INC OF FOSTER CITY CALIF A LEADER IN AN ARCANE TECHNOLOGY KNOWN AS GENETIC TARGETING OR CODE BLOCKING CODEBLOCKER DRUGS WOULD WORK BY THWARTING NORMAL REPLICATION OF DNA OR RNA THE BODY'S BASIC GENETIC BUILDING BLOCKS IT'S A TECHNOLOGY ESPECIALLY WELLSUITED TO CANCER DR SYKES SAYS BUT APPLICABLE TO VIRTUALLY ALL THERAPEUTIC AREAS SINCE THEORETICALLY YOU COULD TREAT ANY DISEASE BY BLOCKING THE SOURCE OF THE PROBLEM BEFORE IT DEVELOPS ONCE YOU IDENTIFY THE GENE THAT'S RESPONSIBLE ADDING TO THE ALLURE OF CODE BLOCKING IS THE SWIFT PROGRESS OF THE HUMAN GENOME PROJECT IN WHICH SCIENTISTS AROUND THE WORLD ARE CLONING SEQUENCING AND MAPPING THE 100000 GENES COMPRISING THE 23 PAIRS OF CHROMOSOMES IN A HUMAN CELL GLAXO DEEMS CODEBLOCKER TECHNOLOGY SO IMPORTANT IT HAS ASSIGNED 35 SCIENTISTS TO WORK WITH AN EQUAL NUMBER OF GILEAD RESEARCHERS GLAXO EVEN MADE AN EXCEPTION AND PURCHASED A DIRECT 6 EQUITY STAKE AS PART OF ITS PACT WITH GILEAD BUT GILEAD ALMOST CERTAINLY WILL REMAIN AN ISOLATED CASE AS LONG AS DR SYKES IS AT THE HELM SOME RIVALS SUCH AS ROCHE HOLDING LTD AND SANDOZ AG OF SWITZERLAND WARY OF FALLING BEHIND IN THE RESEARCH RACE SHELLED OUT HUGE SUMS TO ACQUIRE MAJORITY STAKES IN SUCH US FIRMS AS GENENTECH INC AND SYSTEMIC INC DR SYKES VOWS GLAXO WON'T FOLLOW SUIT IN MY OPINION IF YOU WANT THESE COMPANIES TO BE WHAT THEY ARE YOU MUST LEAVE THEM INTACT AND HUNGRY HE SAYS THE UNIQUENESS OF THESE COMPANIES IS THEIR FEELING OF BEING PART OF NEW WAVE SCIENCE AND THE ENVIRONMENT IN WHICH THEY OPERATE AS FREE SPIRITS NOT PART OF A CORPORATE CULTURE ONCE YOU START BUYING THEM YOU TAKE ALL THAT AWAY 9305210130 930521 LETTERS TO THE EDITOR FAILING MEMORY LAURIE WINER ACCUSES JOAN PEYSER OF BEING SLOPPY WITH FACTS IN HER NEW BIOGRAPHY OF GEORGE GERSHWIN THE MEMORY OF ALL THAT AND PROVIDES EXAMPLES LARGE AND SMALL LEISURE & ARTS APRIL 20 BUT THE CORRECTOR NECESSARILY INVITES SCRUTINY AND WHERE APPROPRIATE CORRECTION MS WINER STATES THAT MS PEYSER INCORRECTLY ASSERTS THAT COLE PORTER WROTE NIGHT AND DAY IN 1928 WHEN HE ACTUALLY WROTE IT IN 1932 FOR THE GAY DIVORCEE YES AS TO 1932 BUT THE STAGE SHOW OF THAT YEAR WAS GAY DIVORCE THE TITLE OF THE 1934 FILM ADAPTION ADDED THE DEFINITE ARTICLE AND FINAL E A SUBTLE REINFORCEMENT OF THE OLD HOLLYWOOD CANON THAT THERE COULD BE NOTHING DELIGHTFUL IE GAY IN ITS PRISTINE SENSE ABOUT A DIVORCE 9305210129 930521 CORPORATE FOCUS REBOUNDING LOTUS EYES CHANGING DATABASE MARKET SOFTWARE MAKER REACHING BEYOND 123 HOPES TO BUY CALIFORNIA CONCERN BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL LONG CRITICIZED AS A ONEPRODUCT WONDER LOTUS DEVELOPMENT CORP NOW HAS A SMORGASBORD OF SOFTWARE BEYOND ITS FLAGSHIP 123 SPREADSHEET RANGING FROM WORDPROCESSING AND GRAPHICS PACKAGES TO NEW PRODUCTS FOR COMPUTER NETWORKS SOUP TO NUTS WITH ONE EXCEPTION AFTER SEVERAL FALSE STARTS LOTUS STILL HAS NO PRODUCT IN DATABASE SOFTWARE A BUSINESS NOW DOMINATED BY RIVALS BORLAND INTERNATIONAL INC AND MICROSOFT CORP THAT MAY BE ABOUT TO CHANGE THE CAMBRIDGE MASS SOFTWARE MAKER IS NEGOTIATING TO BUY APPROACH SOFTWARE INC A SMALL FASTGROWING CALIFORNIA DATABASE COMPANY SAY PEOPLE FAMILIAR WITH THE TALKS THE COMBINATION COULD GIVE LOTUS A HOT NEW PRODUCT AND A DEFENSIVE WEAPON AGAINST RECENT MOVES BY BORLAND AND MICROSOFT LOTUS AND APPROACH HAVEN'T YET COME TO AN AGREEMENT AND OTHER SUITORS ARE CIRCLING ACCORDING TO THOSE CLOSE TO THE TALKS IF TERMS FOR A TAKEOVER CANNOT BE REACHED ANOTHER OPTION UNDER DISCUSSION IS A LICENSING AGREEMENT IN WHICH LOTUS WOULD SELL APPROACH'S SOFTWARE BUT APPROACH WOULD REMAIN INDEPENDENT IF THE TALKS FAIL LOTUS MAY SEEK A LICENSING DEAL WITH APPLE COMPUTER INC'S CLARIS UNIT OR ANOTHER DATABASE MAKER INSIDERS SAY ONE WAY OR ANOTHER LOTUS WANTS TO BE IN THAT BUSINESS SAYS RICHARD G SHERLUND A GOLDMAN SACHS & CO ANALYST LOTUS WOULDN'T COMMENT ON TALKS WITH OTHER COMPANIES APPROACH'S CHIEF EXECUTIVE OFFICER KEVIN HARVEY SAID THE COMPANY HAS BEEN APPROACHED BY A NUMBER OF MAJOR SOFTWARE COMPANIES THERE'S NOTHING ELSE TO TALK ABOUT YET LOTUS HAS BEEN ON A ROLL EVEN WITHOUT A DATABASE IT HAS REPAIRED THE 123 FRANCHISE ANALYSTS SAY WITH A STRONG NEW RELEASE THAT GOES ON SALE NEXT MONTH ENDING A STRING OF MISSTEPS ITS NEW IMPROV SPREADSHEET ELECTRONICMAIL AND NOTES WORKGROUP SOFTWARE ARE ALL SELLING WELL NOTES EVEN WON A RARE ENDORSEMENT FROM MICROSOFT WHICH SAID IT WILL TAILOR SOME PRODUCTS TO BE COMPATIBLE WITH NOTES LOTUS SHARES MEANWHILE CAUGHT FIRE EARLY THIS MONTH AND HIT A NEW 52WEEK HIGH IN LATE OVERTHECOUNTER TRADING YESTERDAY CLOSING AT 36 UP 1 INVESTORS APPLAUDED A RECENT UPBEAT FORECAST FOR NEXT YEAR BY CHIEF EXECUTIVE JIM P MANZI AND HIS PROJECTION THAT NONSPREADSHEET SALES WILL RISE TO MORE THAN HALF OF TOTAL SALES BY YEAR END A MILESTONE IN LOTUS'S DIVERSIFICATION STILL THE NEED FOR A DATABASE BECAME CLEAR RECENTLY AFTER MICROSOFT SAID IT WOULD OFFER ITS ACCESS PRODUCT AS PART OF THE POPULAR MICROSOFT OFFICE A LOWPRICED BUNDLE OF ITS BESTSELLING TITLES BORLAND LAST MONTH JUMPED INTO BUNDLED SOFTWARE AS WELL IN A DEAL THAT WILL PAIR ITS DATABASE AND SPREADSHEET WITH WORDPERFECT CORP'S WORDPROCESSING PACKAGE LOTUS'S SMARTSUITE BUNDLE DOESN'T HAVE A DATABASE LOTUS HAS HAD REPEATED SETBACKS IN THE DATABASE BUSINESS ALTHOUGH IT NEVER DISCLOSED A FIGURE PAST AND PRESENT EMPLOYEES NOW SAY ITS INTERNAL INVESTMENT IN DATABASE DEVELOPMENT CONSUMED MORE THAN 30 MILLION AND FOUR YEARS' WORK BEFORE IT WAS QUIETLY CANCELED IN 1989 THEN IN SEPTEMBER OF THAT YEAR LOTUS BOUGHT A 15 STAKE IN SYBASE INC A LEADER IN SOFTWARE FOR LARGE CORPORATE DATABASES LOTUS PROMISED A STRATEGIC BUSINESS ALLIANCE IN DATABASE SOFTWARE BUT SYBASE ENDED UP WORKING CLOSELY WITH MICROSOFT INSTEAD LOTUS DIDN'T COME AWAY EMPTYHANDED THOUGH IT REAPED A 333 MILLION PROFIT FROM THE SALE OF ITS STAKE LAST YEAR LATELY LOTUS HAS BEEN QUIETLY LOOKING FOR ANOTHER OPENING IN DATABASES BUT HASN'T FOUND THE RIGHT FIT IT DECIDED NOT TO BID FOR STRUGGLING ASHTONTATE CORP WHICH WAS THEN BOUGHT BY BORLAND IT HAD TAKEOVER DISCUSSIONS WITH UKBASED PRECISION SOFTWARE MAKER OF SUPERBASE INDUSTRY EXECUTIVES SAY BUT IT WAS SOLD INSTEAD TO ANOTHER LOTUS RIVAL SOFTWARE PUBLISHING CORP LOTUS ALSO HAD EXPLORATORY TALKS WITH DATAEASE INTERNATIONAL INC OF TRUMBULL CONN BUT THEY WEREN'T PURSUED A DATAEASE EXECUTIVE SAID IF LOTUS LINKS UP WITH APPROACH IT WILL ENTER AT THE FASTGROWING LOW END OF THE MARKET WITH SOFTWARE AIMED AT INDIVIDUAL USERS NOT PROGRAMMERS WHILE SUCH PRODUCTS ARE EASIER TO USE THEY LACK THE POWER AND PROGRAMMABLE FEATURES OF PRODUCTS LIKE PARADOX OR ACCESS BUT LOTUS VIEWS THESE PERSONAL DATABASES AS IDEAL FOR THE SUITE BUYER BOTH THE SMALL BUSINESSMAN WHO NEEDS AN EASYTODESIGN DATABASE AND THE CORPORATE BUYER WHO WANTS TO USE THE PROGRAM AS A DESKTOP WINDOW INTO LARGER CORPORATE DATABASES LOTUS ALSO IS EXPECTED TO BRING NEW DATABASE FEATURES INTO ITS NOTES LINE WHICH MANY CUSTOMERS ARE ALREADY USING AS A TYPE OF UNTRADITIONAL DATABASE GROWTH IN THE DATABASE SOFTWARE MARKET HAD BEEN FLAT IN RECENT YEARS UNTIL THE DEBUT LATE LAST YEAR OF PARADOX AND ACCESS BOTH FOR WINDOWSEQUIPPED PCS SPARKING A SURGE IN UPGRADES AND NEW SALES THE TWO TITLES WHICH WERE PRICED AT 99 FOR THEIR DEBUT COMPARED WITH A RETAIL PRICE OF 595 OR HIGHER NOW DOMINATE THE MARKET WITH APPROACH AND FILEMAKER WELL BEHIND NONETHELESS MANY ANALYSTS SAY THAT GROWTH IN PERSONAL DATABASES WILL OUTPACE TRADITIONAL PRODUCTS INDEED THOUSANDS OF PEOPLE GOT THEIR 99 COPY OF PARADOX OR ACCESS HOME AND REALIZED THEY WERE FAR TOO COMPLEX TO USE SAYS RICHARD FINKELSTEIN OF PERFORMANCE COMPUTING INC A CHICAGO CONSULTANT BECAUSE THEY OFTEN REQUIRE PROFESSIONAL PROGRAMMERS TO SET UP THESE DATABASES COST 99 TO BUY AND 10000 TO DEPLOY HE SAYS IF LOTUS OFFERED A PERSONAL NONPROGRAMMABLE DATABASE PRODUCT IN ITS SUITE IT MIGHT HAVE A BROAD APPEAL SAYS MR SHERLUND THE ANALYST LOTUS'S FIRST OVERTURE TO APPROACH CAME ABOUT FOUR MONTHS AGO INSIDERS SAID AT THE TIME APPROACH WAS IN A STRONG NEGOTIATING POSITION IT WAS ENJOYING HUGE GROWTH BECAUSE IT BEAT PARADOX AND ACCESS TO MARKET BUT THE INTRODUCTION OF THE TWO PRODUCTS AT 99 COMPARED WITH APPROACH'S INITIAL LIST PRICE OF 399 SLOWED ITS RAPID GROWTH ANALYSTS SAY WHICH MAY MAKE THE COMPANY MORE DISPOSED TO A DEAL LOTUS'S RECENT RECORD WITH ACQUISITIONS HAS BEEN GOOD IT PAID 65 MILLION FOR TINY SAMNA CORP MAKER OF A TOPRATED WINDOWS WORD PROCESSOR CALLED AMI PRO WHICH IS NOW PART OF THE LOTUS SUITE AT THE TIME ANALYSTS SAID LOTUS OVERPAID TODAY MOST RECOGNIZE THE ACQUISITION AS A CRITICAL STRATEGIC MOVE LOTUS'S PURCHASE OF ANOTHER SMALL SOFTWARE FIRM CCMAIL HAS ALSO PAID OFF ITS PRODUCT IS NOW THE BESTSELLING ELECTRONIC MAIL PROGRAM AND A LINCHPIN OF LOTUS'S NETWORK SOFTWARE STRATEGY 9305210128 930521 INTERNATIONAL US IS MOVING TOWARD SUPPORT OF BOSNIA PLAN BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DESPITE GRAVE MISGIVINGS THE CLINTON ADMINISTRATION APPEARS TO BE MOVING TOWARD A CONDITIONAL ENDORSEMENT OF A EUROPEAN PLAN TO CONTAIN THE BLOODY CIVIL WAR IN BOSNIA THE PROPOSAL WOULD USE MULTINATIONAL BUT NOT AMERICAN PEACEKEEPERS TO PROTECT MUSLIM HAVENS WHILE CONTINUING TO TIGHTEN ECONOMIC AND DIPLOMATIC PRESSURES ON THE BOSNIAN SERBS TO END THEIR AGGRESSION AND AGREE TO A PEACE ACCORD UNLIKE AN AMERICAN PLAN THAT WOULD TRY TO ROLL BACK SERBIAN LAND GRABS WITH AIR STRIKES AND ARMING THE BOSNIAN MUSLIMS THE APPROACH NOW UNDER DISCUSSION COULD END UP FREEZING SERBIAN GAINS IN PLACE PRESIDENT CLINTON HAS SAID AMERICAN PEACEKEEPERS WOULDN'T BE SENT TO BOSNIA UNTIL ALL SIDES HAD ACCEPTED A PEACE ACCORD AND EVEN IF THE US FORMALLY ENDORSES THE HAVEN PLAN OFFICIALS SAID THE US STILL WON'T SEND ANY AMERICAN TROOPS IN A MEETING YESTERDAY WITH RUSSIAN FOREIGN MINISTER ANDREI KOZYREV SECRETARY OF STATE WARREN CHRISTOPHER ACCORDING TO OFFICIALS OFFERED A LIST OF COMPREHENSIVE ACTIONS THAT THE US WOULD BE PREPARED TO TAKE TO HELP END THE CONFLICT INCLUDING AN OFFER OF AMERICAN AIR SUPPORT TO HELP PROTECT THE HAVENS THE US IS INTERESTED IN ENDING THE KILLING AND THERE IS A LOT WE CAN DO TO HELP SAID A SENIOR ADMINISTRATION OFFICIAL IN YESTERDAY'S MEETINGS MR KOZYREV ALSO RAISED THE IDEA OF SELECTIVE IMPLEMENTATION OF A UNITED NATIONSBACKED PEACE ACCORD BEGINNING IN MUSLIM AND CROATIAN AREAS WHERE THE FIGHTING HAS SLOWED SOMEWHAT US OFFICIALS HAVE REPEATEDLY BRUSHED THAT PLAN ASIDE AND DID SO AGAIN YESTERDAY AT THE END OF THEIR MEETINGS MR CHRISTOPHER SAID THE US AND RUSSIA WERE DRAWING CLOSER TOGETHER ON A PLAN TO END THE CIVIL WAR THOSE TALKS WILL CONTINUE IN MEETINGS WITH BRITISH FOREIGN MINISTER DOUGLAS HURD TODAY AND FRENCH FOREIGN MINISTER ALAIN JUPPE SOON AFTERWARD THE US IS ALSO EXPECTED TO OFFER TO SEND AMERICAN PEACEKEEPERS TO MACEDONIA TO HELP PREVENT THE CONFLICT FROM SPREADING AND OFFICIALS SAY THE US WILL CONTINUE TO TAKE THE LEAD IN ENFORCING A NO FLY ZONE OVER BOSNIA AND MONITORING AND IMPLEMENTING STIFF ECONOMIC SANCTIONS ON SERBIA US OFFICIALS STILL CONTINUE TO HARBOR STRONG MISGIVINGS ABOUT THE HAVEN PLAN AS LONG AS THE SERBS REFUSE TO SIGN A PEACE ACCORD THEY SAY THE TASK OF PROTECTING THE HAVENS COULD BE VERY DANGEROUS AND COULD GO ON FOR YEARS 9305210127 930521 HEARD ON THE STREET ANALYSTS DON'T EXPECT TIME WARNER ALLIANCE TO ADD MUCH GLITZ TO U S WEST STOCK FOR NOW BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL SHARES OF U S WEST UP 7 SINCE MONDAY WHEN THE BABY BELL TELEPHONE COMPANY ANNOUNCED AN ALLIANCE WITH TIME WARNER'S ENTERTAINMENT UNIT COULD BE RUNNING OUT OF ROOM TO ROCKET THAT'S THE VIEW OF ANALYSTS WHO SUGGEST THAT THE STOCK MIGHT RISE TO THE HIGH 40S OVER THE NEXT YEAR A RELATIVELY MODEST GAIN FROM YESTERDAY'S 43 7/8 UP 3/8 FOR LONGTERM INVESTORS HOWEVER U S WEST'S PLANNED ALLIANCE WITH TIME WARNER INC WILL TAKE SOME OF THE BUMPS OUT OF THE BRONCO RIDE THE BABY BELL STOCKS FACE AS COMPETITION ENTERS THE LOCALPHONE ARENA IT WILL PROBABLY TAKE A FEW YEARS BEFORE U S WEST BASED IN ENGLEWOOD COLO SEES ANY SIGNIFICANT RETURN FROM ITS 25 BILLION INVESTMENT FOR A 2551 STAKE IN TIME WARNER ENTERTAINMENT ANALYSTS SAY UNDER THE ARRANGEMENT TIME WARNER AND U S WEST WILL COMANAGE A 5 BILLION FIVEYEAR PROJECT TO UPGRADE TIME WARNER'S CABLE SYSTEMS TO CARRY TWOWAY VOICE VIDEO AND DATA SERVICES BUT U S WEST MUST BE EXPECTING QUITE A PAYBACK THE STREET BELIEVES GIVEN THAT THE COLORADO COMPANY IS PAYING HANDSOMELY FOR A MINORITY STAKE AND FORKING OVER WHAT ANALYSTS FIGURE IS MORE THAN 10 TIMES CASH FLOW UNDER THE DEAL U S WEST WILL BEGIN PICKING UP NEW REVENUE BEFORE THE PROJECT IS COMPLETE THIS WON'T COME FROM MOVIES ON DEMAND OR FROM PAYPERVIEW BOXING BUT INSTEAD FROM LONGDISTANCE PHONE COMPANIES EAGER TO SAVE MONEY ON CONNECTIONS TO THEIR CUSTOMERS BY CIRCUMVENTING THE LOCAL PHONE COMPANIES AND GOING THE CABLE ROUTE INSTEAD YOU HAVE VERY WILLING CUSTOMERS WAITING FOR THIS TO HAPPEN SAYS ROBERT MORRIS OF GOLDMAN SACHS RECOMMENDATION RAISED AFTER THE U S WEST ANNOUNCEMENT MR MORRIS EARLIER THIS WEEK RAISED HIS RECOMMENDATION ON U S WEST STOCK TO A BUY FROM HOLD HE APPLAUDS THE COMPANY FOR RECOGNIZING THAT COMPETITION WILL BE A FACT OF LIFE BOTH BY UPGRADING ITS OWN NETWORK AND BY JOINING FORCES WITH TIME WARNER CABLE TO BREAK OUT OF THE OLD GEOGRAPHIC BARRIERS AND GO ON THE OFFENSE U S WEST'S SHARES HAVE BEEN SELLING AT A DISCOUNT COMPARED WITH THE INDUSTRY BUT EVEN MR MORRIS IS PREDICTING ONLY THAT THE STOCK WILL RISE OVER THE NEXT YEAR TO THE THE MID TO HIGH40S JEFF SADLER OF JOSEPHTHAL LYON & ROSS ALSO RAISED HIS RATING TO A LONGTERM BUY CITING A POTENTIAL EXPLOSION OF NEW VIDEO AND PHONE SERVICES OFFERED OVER BOTH THE TIME WARNER CABLE SYSTEMS AND U S WEST'S OWN PHONE NETWORK MOST OTHER ANALYSTS AREN'T AS SANGUINE JACK GRUBMAN AN ANALYST FOR PAINEWEBBER IS KEEPING ALL OF THE BABY BELLS ON HOLD THE ALLIANCE DOESN'T DO ANYTHING FOR EARNINGS OR GROWTH RATE OVER THE NEXT THREE TO FIVE YEARS AND THE MARKET BARELY CARES ABOUT THINGS BEYOND THE NEXT THREE MONTHS MR GRUBMAN SAYS MOREOVER HE SAYS THE BABY BELLS WILL LOSE A LARGE PART OF THEIR MARKET SHARE BEFORE GETTING REGULATORY RELIEF GEORGE DELLINGER OF COUNTY NATWEST SEES ANOTHER PROBLEM THOUGH THE TRANSACTION WAS STRUCTURED TO AVOID REGULATORY AND ANTITRUST ROADBLOCKS HE SAYS SOMEONE IN WASHINGTON PRESUMABLY A LOBBYIST IS GOING TO BE PAID WELL TO KEEP THE CAMEL'S NOSE OUT OF THE TENT ANALYSTS GENERALLY AGREE THAT THE LONGDISTANCE COMPANIES HOLD FAR MORE PROMISE FOR INVESTORS AMERICAN TELEPHONE & TELEGRAPH MCI COMMUNICATIONS AND TO A LESSER EXTENT SPRINT WHICH STILL DERIVES MOST OF ITS PROFITS FROM LOCAL PHONE SERVICE WILL BE THE BIGGEST BENEFICIARIES THEY SAY THE 25 BILLION A YEAR THEY PAY TO LOCAL PHONE COMPANIES TO DELIVER CALLS THE LAST MILE IS CERTAIN TO SHRINK AT&T GETS A DOUBLE DIP ITS EQUIPMENT ARM WILL LIKELY GET HANDSOME ORDERS FROM U S WEST AND TIME WARNER CABLE NOT TO MENTION OTHER LOCAL PHONE COMPANIES AND CABLE OPERATORS WHO WANT TO CASH IN ON THE COLLISION OF THE TWO INDUSTRIES THERE'S NO QUESTION THAT THE BIGGEST SINGLE WINNER IS AT&T SAYS MR GRUBMAN 9305210126 930521 ENTERPRISE HOMEBOYS INC CHIPS IN TO HELP INNERCITY TEENAGERS PHILADELPHIA FIRM'S SOCIAL MESSAGES ON PACKAGING WIN IT GROCERY SHELF SPACE BY VERONICA J BUSH STAFF REPORTER OF THE WALL STREET JOURNAL FOR HOMEBOYS INC A FLEDGLING PHILADELPHIA COMPANY SUCCESS IS MARKETING POTATO CHIPS WITH A SOCIAL MESSAGE EACH BAG OF CHIPS CARRIES MESSAGES URGING INNERCITY YOUTHS TO STAY AWAY FROM DRUGS STAY IN SCHOOL AND AVOID PREMARITAL SEX BUT ANOTHER MESSAGE FOR ENTREPRENEURS MIGHT BE THAT TRYING TO DO GOOD CAN SOMETIMES HELP A BUSINESS GROW JERRY RIDGLEY WHO STARTED HOMEBOYS IN 1991 AFTER OVERCOMING A DRUG PROBLEM SAYS HE WAS INSPIRED BY THE NEED TO SAVE OTHERS FROM THE PLAGUE OF COCAINE ADDICTION WITH 15 YEARS OF EXPERIENCE IN THE POTATOCHIP BUSINESS THE 39YEAROLD MR RIDGLEY TEAMED UP WITH PARTNER SAMIR MUHAMMAD 45 TO FIGHT BACK AGAINST DRUGS FROM THE SNACKFOOD COUNTER AFTER JUST ONE YEAR ON THE MARKET SALES LAST YEAR REACHED 4 MILLION MR RIDGLEY SAYS AND THE COMPANY IS PROFITABLE HOMEBOYS' CHIPS NOW ARE SOLD FROM BOSTON TO TEXAS IN MOMANDPOP STORES AND SUPERMARKETS SUCH AS SUPERFRESH AND ACME MR RIDGLEY HOPES THE COMPANY WILL BE A MODEL FOR OTHER AFRICANAMERICAN ENTREPRENEURS BUT GOOD INTENTIONS AREN'T ENOUGH EXPERTS WARN AT HOMEBOYS THE COMPANY'S SOCIAL GOALS ARE BACKED BY STREETSMART MARKETING A ONEOUNCE BAG OF CHIPS RETAILS FOR 25 CENTS AFFORDABLE FOR MOST TEENAGERS AND TO APPEAL TO URBAN YOUTHS HOMEBOYS USES SLANG FROM THE STREETS TO CREATE THE NAMES AND FLAVORS FOR ITS CHIPS THE FIRST PRODUCT WAS CHUMPIES WHICH IS A COMMONLY USED TERM IN PHILADELPHIA FOR THE BEST OF THE BEST MR RIDGLEY SAYS ANOTHER IS HOMEGIRLS DEFINED AS GIRLS FROM THE NEIGHBORHOOD A NEW FLAVOR COMES FROM BUMPIN WHICH HE SAYS MEANS SOMETHING HOT AND GOOD SO THE BUMPIN BAREBECUE FLAVOR WAS CREATED BARTLEY SWARTZ SALES REPRESENTATIVE FOR SWARTZ & SONS A BALTIMORE DISTRIBUTOR ATTRIBUTES THE CHIPS' SUCCESS NOT JUST TO THEIR SOCIAL MESSAGES BUT ALSO TO THEIR UNIQUE FLAVOR AND THEIR 25CENT PRICE HIS COMPANY DISTRIBUTES ABOUT 1200 CASES OF CHUMPIES AND HOMEGIRLS A WEEK TO INNERCITY STORES IN THE BALTIMORE AREA AND WASHINGTON ONE CASE HOLDS 36 BAGS EVEN THOUGH THE PROFIT FOR MERCHANTS AVERAGES JUST SIX CENTS A BAG THE CHIPS ARE A FAVORITE AMONG HIS VENDORS MR SWARTZ SAYS WE RECEIVE CALLS FROM AS FAR AS HARRISBURG PA ABOUT THEM HE SAYS THE BAGS ALSO FEATURE THREE CARTOON HOMEBOYS OR HOMEGIRLS THE GUYS ON CHUMPIES ARE A DIVERSE THREESOME ERIC THE HOMEBOY WITH SUNGLASSES IS WHITE RAFAEL A HISPANIC YOUTH IS DRESSED IN BAGGY PANTS AND A BASEBALL CAP AND KAREEM WHO HOLDS A BASKETBALL IS AFRICANAMERICAN THE HOMEGIRLS ARE MARIA KATHY AND RASHEEDA WHO WEARS MUSLIM HEAD GARB ON THE BACK OF THE BAGS ARE THE MESSAGES THAT HAVE BECOME A MAJOR DRAW AN ANTIDRUG MESSAGE SAYS DRUG PEDDLERS ARE NO HEROES AND URGES LET'S MAKE IT PLAIN HOMEBOYS TELL THOSE DRUG DEALERS TO STEP OFF AND GET A LIFE FIRDOWS MUHAMMAD 41 THE COMPANY'S CORPORATE ADMINISTRATOR CREATES THE MESSAGES ON HOMEGIRLS I HAVE FOUR DAUGHTERS THE OLDEST BEING 17 I INSTILL THE SAME VALUES IN THEM I AM JUST RELAYING THE SAME MESSAGE TO OTHER YOUNG WOMEN SHE SAYS ONE MESSAGE ON THE BACK OF THE HOMEGIRLS SAYS IN PART WE SHOULD SAVE OURSELVES FOR MARRIAGE WHY SHOULD A MAN RESPECT US IF HE CAN HAVE US BEFORE MARRIAGE NO RING NO THING SOMETIMES THE MESSAGE GETS THROUGH ONE TEENAGE GIRL WROTE THE COMPANY THAT ONE NIGHT AFTER DRINKING HEAVILY I WAS WALKING HOME WITH A BOY WHO JUST SWEPT ME OFF MY FEET WHEN THEY STOPPED AT A CONVENIENCE STORE TO BUY A SIXPACK OF BEER I JUST HAPPENED TO PICK UP A BAG OF HOMEGIRLS AND READ THE MESSAGE SHE SAID AND I DITCHED THE DUD WHO I THOUGHT WAS A STUD THANKS FOR HELPING GIRLS LIKE ME LETTERS LIKE THESE POUR IN EVERY DAY SAYS MR RIDGLEY WHO SAYS EVEN HE AND HIS PARTNERS HAVE BEEN SURPRISED WE SET OUT TO PUT MESSAGES ON THE BAGS NOT REALIZING IT WOULD BECOME AN OVERWHELMING SENSATION HE SAYS OUR COMMUNITY IS SO UNDER SIEGE WITH DRUGS AND CRIME WE JUST WANTED TO BE A PART OF THE SOLUTION NOT THE PROBLEM CHUMPIES BECAME THE NEW CHIP ON THE BLOCK IN LATE 1991 AFTER HOMEBOYS WAS STARTED WITH A 100000 INVESTMENT HALF OF IT FROM PRIVATE INVESTORS SALES GREW FROM 1000 CASES A WEEK IN THE FIRST MONTH TO OVER 21000 CASES A WEEK BY THE SIXTH MONTH MR RIDGLEY SAYS HOMEBOYS NOW HAS OVER 100 DISTRIBUTORSHIPS IN PHILADELPHIA ALONE HE SAYS HOMEBOYS EMPLOYS 17 PEOPLE AND HAS HIRED SEVERAL YOUNG MEN FROM THE NEIGHBORHOODS OF WEST PHILADELPHIA WE ALL HAVE HAD EITHER A FAMILY MEMBER OR FRIEND FALL VICTIM TO THE ILLS OF OUR NEIGHBORHOOD SAYS FARUQ ABDULGHAFFAR DIRECTOR OF SALES I SAW THE OPPORTUNITY TO BE A PART OF SOMETHING POSITIVE AND AT THE SAME TIME MAKE MONEY MR ABDULGHAFFAR A FORMER SCHOOL TEACHER TAKES THE COMPANY'S MESSAGE TO SCHOOLS AND RECREATIONAL FACILITIES MR MUHAMMAD THE COMPANY'S VICE PRESIDENT SAYS THAT IN SOME RESPECTS WE ARE SUBSTITUTES FOR PARENTAL GUIDANCE BECAUSE WE RELAY TRADITIONAL FAMILY VALUES TO THE CHILDREN MR MUHAMMAD SAYS THE COMPANY ALSO WANTS TO SET AN EXAMPLE FOR OTHER AFRICANAMERICANS TO HAVE THE COURAGE TO START THEIR OWN BUSINESS FOR TOO LONG AFRICANAMERICANS HAVE BEEN DISCOURAGED FROM BEING ENTREPRENEURS ONCE WE BEGIN TO OWN WE WILL BEGIN TO PROMOTE POSITIVE IMAGES OF OUR PEOPLE HOMEBOYS MEANTIME PLANS TO EXPAND ITS PRODUCT LINE TO CANDY AND FREEZER POPS AS WELL AS TO OFFER HEALTHIER SUGARFREE PRODUCTS SUCH AS WHOLE GRAIN CEREALS AND HEALTHFOOD BARS A CALLIN NUMBER IS ALSO IN THE WORKS FINALLY THE KIDS WILL BE ABLE TO CALL AND SPEAK TO ERIC RAFAEL AND KAREEM SAYS MR RIDGLEY ONCE THE NAME IS SUCCESSFUL YOU CAN SELL JUST ABOUT ANYTHING 9305210125 930521 NORTHWEST AIR SEEKS DEFERRAL ON BANK DEBT BY STEVEN LIPIN AND BRETT PULLEY STAFF REPORTERS OF THE WALL STREET JOURNAL THE PARENT OF NORTHWEST AIRLINES IN AN APPARENT CHANGE OF COURSE ASKED LENDERS TO DEFER MUCH OF ITS 214 BILLION BANK DEBT WINGS HOLDINGS INC TIED THE REQUEST TO A CONCESSION PACT THE ST PAUL MINN COMPANY IS SEEKING WITH THE AIRLINE'S UNIONS AT A MEETING WITH LENDERS WEDNESDAY WINGS SAID THAT IF THE BANK GROUP DEFERS MUCH OF THE DEBT UNTIL 1997 THE PILOTS UNION WOULD AGREE TO CONCESSIONS WHILE NO DECISION HAS BEEN MADE YET A NUMBER OF BANKERS SAY THEY WOULD LIKELY GO ALONG WITH THE PLAN BECAUSE THE ALTERNATIVE IS A POSSIBLE FEDERAL BANKRUPTCYLAW FILING PREVIOUSLY NORTHWEST OFFICIALS MAINTAINED THEY WOULDN'T ASK THE BANKS FOR DEFERRALS UNTIL AFTER THE CARRIER'S LABOR GROUPS SIGNED ON TO A THREEYEAR CONCESSION PACKAGE OF ABOUT 900 MILLION THE UNIONS HAD ASKED THAT THE CONCESSIONS AND THE BANK PACTS BE AGREED TO SIMULTANEOUSLY ALTHOUGH TWO LABOR GROUPS ARE APPARENTLY PREPARED TO ACCEPT THE COMPANY'S ORIGINAL APPROACH THE PILOTS HAVE REMAINED RECALCITRANT A NORTHWEST SPOKESMAN DECLINED TO COMMENT ON ITS LATEST REQUEST TO THE BANKS WE CONTINUE TO HAVE PRODUCTIVE DISCUSSIONS WITH ALL OF OUR STAKEHOLDERS HE SAID HOWEVER A SPOKESWOMAN FOR THE AIR LINE PILOTS ASSOCIATION WHICH REPRESENTS NORTHWEST'S 5400 PILOTS SAID THIS IS A MAJOR DEPARTURE FROM WHAT WE'VE BEEN HEARING IN THE PAST THAT WOULD BE A VERY GOOD THING IF IT'S TRUE STRAPPED WITH 46 BILLION IN TOTAL DEBT NORTHWEST HAS BEEN NEGOTIATING FOR MONTHS TO GAIN CONCESSIONS AS A FIRST MAJOR STEP TOWARD RESTRUCTURING ITS FINANCES THE LATEST REQUEST OF ITS LENDERS COMES FIVE MONTHS AFTER THE COMPANY REACHED AN AGREEMENT ON THE DEFERRAL OF 340 MILLION IN PRINCIPAL PAYMENTS DUE THIS YEAR BANKERS HAVE SAID ANY ADDITIONAL LOAN DEFERRALS WOULD BE CONTINGENT UPON RECEIVING UNION CONCESSIONS FIRST AT THE MEETING THE COMPANY REQUESTED THE LOAN DEFERRALS AND SAID IF BANKS COULD AGREE THEN THE PILOTS UNION WOULD ALSO DO ITS PART THE TWO THINGS DEPEND ON EACH OTHER SAID ONE OF THE COMPANY'S LENDERS THE ABILITY TO OBTAIN WAGE CONCESSIONS WILL GO A LONG WAY TO MAKE THE BANKS FEEL BETTER ABOUT RESTRUCTURING MORE OF THE AIRLINE'S DEBT SAID ANOTHER LENDER HOWEVER MANY ANALYSTS SAY NORTHWEST WOULD ONLY BREAK EVEN ON AN OPERATING BASIS IF IT GETS UNION CONCESSIONS BUT IS UNABLE TO COMPLETE OTHER MAJOR RESTRUCTURINGS A FIX OF JUST GETTING UNION CONCESSIONS ISN'T ENOUGH SAID JACK HERSCH DIRECTOR OF RESEARCH AT MJ WHITMAN LP WHAT'S NECESSARY IS EITHER A DRAMATIC IMPROVEMENT IN OPERATIONS OR CONCESSIONS ELSEWHERE A SIMULTANEOUS AGREEMENT FROM THE BANKS IS ONLY ONE ELEMENT ALBEIT A VITAL ONE NEEDED TO SECURE A CONCESSION PACT WITH THE PILOTS THE PILOTS ALSO HAVE TOLD NORTHWEST MANAGEMENT THAT THEY WON'T AGREE TO CONCESSIONS WITHOUT A REVIEW OF THE CARRIER'S TENTATIVE PACT WITH ITS OTHER MAJOR UNIONS ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION EARLY THIS MONTH NORTHWEST REACHED AN AGREEMENT IN PRINCIPLE WITH THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS WHICH REPRESENTS 26000 NORTHWEST EMPLOYEES AND WITH THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS WHICH REPRESENTS THE CARRIER'S 8900 FLIGHT ATTENDANTS TERMS OF THAT AGREEMENT HAVEN'T BEEN MADE PUBLIC PENDING APPROVAL BY THE UNIONS' MEMBERS HOWEVER A COPY OF THE LETTER OF AGREEMENT OBTAINED BY THE WALL STREET JOURNAL SHOWS THAT NORTHWEST WOULD GIVE ALL THREE OF THE UNIONS A TOTAL OF 30 OF THE COMMON EQUITY IN WINGS WITH EACH GROUP RECEIVING SHARES OF STOCK COMPARABLE TO THE AMOUNT OF CONCESSIONS ALSO THE AGREEMENT CALLS FOR THREE WINGS BOARD SEATS TO BE DIVIDED AMONG THE THREE UNIONS AND IT PROVIDES A SNAPBACK CLAUSE THAT WOULD RETURN WAGES TO THEIR ORIGINAL LEVELS IF THE AIRLINE IS UNABLE TO RESCHEDULE ITS BANK DEBT BY NEXT JANUARY MOREOVER UNDER THE AGREEMENT WINGS IS REQUIRED TO OBTAIN A MINIMUM OF 500 MILLION OF NEW PERMANENT CAPITAL BY JUNE 1995 OR THE CURRENT COMMON SHAREHOLDERS WILL HAVE THEIR STAKE DILUTED WINGS HAS 214 BILLION IN BANK DEBT THAT STARTS MATURING IN 1994 BANKERS CONCEDE THAT THE CASHSTARVED AIRLINE WILL BE UNABLE TO MAKE PAYMENTS BASED ON ITS CURRENT FINANCIAL CONDITION UNDER THE PROPOSAL THE CARRIER WILL MAKE SOME LOAN PAYMENTS IN 1994 AND 1995 BUT MUCH OF THE DEBT WILL BE PUSHED BACK TO 1997 WHEN THE COMPANY'S 129 BILLION TERM LOAN MATURES IT WILL CONTINUE TO MAKE INTEREST PAYMENTS IN ADDITION SUPPLIERS AND OTHERS WHO MADE A 250 MILLION SHORTTERM LOAN IN DECEMBER WILL BE ASKED TO STRETCH OUT REPAYMENT THE LOAN MATURES IN JANUARY 1994 BANKERS SAY TWOTHIRDS OF THE BANK GROUP WHICH INCLUDES MORE THAN 50 INSTITUTIONS MUST APPROVE THE CHANGE OF TERMS BANKERS TRUST WHICH HEADS THE 13MEMBER BANK STEERING COMMITTEE IS ASKING BANKS TO RESPOND BY JUNE 15