A 32YEAROLD SECRETARY AT A SMALL NEW YORK DEBTTRADING FIRM GREW SUSPICIOUS ABOUT THE OWNER OF THE FIRM SO SHE FAXED SOME INFORMATION TO THE MANHATTAN DISTRICT ATTORNEY'S OFFICE ALMOST TWO YEARS OF INVESTIGATIVE SPADEWORK LATER THAT FAX HELPED LEAD TO THIS WEEK'S INDICTMENTS AGAINST TWO FORMER MANUFACTURERS HANOVER DEBT TRADERS AND A CONTINUING PROBE OF THE MARKET FOR DEVELOPINGCOUNTRY DEBT THE FAX PROVED UNFORTUNATE HOWEVER FOR THE INFORMANT SHE WAS FIRED AFTER THE PROSECUTOR'S OFFICE MISTAKENLY SPOTLIGHTED HER BY SENDING HER A FAX OF ITS OWN ON DISTRICT ATTORNEY LETTERHEAD BUT THANKS TO HER FAX AND TO MANUFACTURERS HANOVER CORP'S HABIT OF ROUTINELY TAPING AT LEAST SOME TELEPHONE CONVERSATIONS OF ITS TRADERS THE PROBE IS OFFERING FEDERAL AND STATE INVESTIGATORS A RARE LOOK INTO THE LIGHTLY REGULATED MARKET FOR THIRD WORLD DEBT WHERE 600 BILLION WILL CHANGE HANDS THIS YEAR THE BANK'S FORMER DEBTTRADING EXECUTIVES DANIEL YOUNG AND GEORGE LIBERATORE WERE INDICTED BY THE NEW YORK STATE GRAND JURY THIS WEEK THEY WERE CHARGED WITH VIOLATING STATE BANKING LAWS WHILE REAPING PROFITS OF MORE THAN 500000 THROUGH COLLUSIVE TRADING IN DEVELOPINGCOUNTRY DEBT THE FEDERAL RESERVE HAS BEGUN FORMAL ENFORCEMENT PROCEEDINGS SEEKING TO HAVE MR YOUNG FINED AND BARRED FROM US BANKING LAWYERS FOR BOTH MEN STOUTLY MAINTAIN THEIR INNOCENCE THE SAGA BEGAN WITH THE ALERT SECRETARY AC MCCORMACK ACCORDING TO PEOPLE CLOSE TO THE CASE BACK IN JUNE 1991 SHE WAS THE OFFICE MANAGER AT DLF FINANCE INC A DEBTTRADING FIRM WHERE MR LIBERATORE WAS A PARTNER MS MCCORMACK READ A STORY IN THIS NEWSPAPER ABOUT SOME MULTIMILLION DOLLAR SHENANIGANS ALLEGEDLY PERPETRATED BY SAUDI ARABIAN TYCOON GHAITH PHARAON THEN A FRONT MAN FOR THE HEAVILY INVESTIGATED ROGUE BANK BCCI HOLDINGS LUXEMBOURG SA AS IT HAPPENED MR PHARAON WAS THEN THE 80OWNER OF DLF FINANCE HORRIFIED BY THIS CONNECTION AND BY HER OWN OBSERVATIONS OF DEALINGS AT DLF MS MCCORMACK DECIDED TO ACT ON IMPULSE SHE SENT A FAX TO A FRIEND IN THE MANHATTAN DISTRICT ATTORNEY'S OFFICE TO OFFER HER SERVICES AS AN INFORMANT ACCORDING TO PEOPLE CLOSE TO THE CASE I WENT TO THE DA'S OFFICE BECAUSE I THOUGHT THAT SOME OF THE INFORMATION I HAD MIGHT HELP MS MCCORMACK SAYS BUT HER FRIEND AT THE DISTRICT ATTORNEY'S OFFICE WAS CONFUSED AND RESPONDED WITH ANOTHER FAX ON MANHATTAN DISTRICT ATTORNEY STATIONERY ASKING FOR MORE DETAILS FRODE FOSSSKITSEVIK ONE OF DLF'S THREE PARTNERS ALL OF WHOM WERE FORMER MANUFACTURERS HANOVER OFFICERS SAW THE FAX AND FIRED MS MCCORMACK THE DISTRICT ATTORNEY'S OFFICE SAYS IT HAS TAKEN STEPS TO ENSURE THAT SUCH BUNGLING DOESN'T HAPPEN AGAIN BUT MS MCCORMACK HAD ALREADY TAKEN COMPUTER DISKS LISTING TRADES MADE BY DLF AS WELL AS OTHER BUSINESS RECORDS USING THESE RECORDS AS EVIDENCE INVESTIGATORS FROM THE MANHATTAN DISTRICT ATTORNEY'S OFFICE WERE ABLE TO START A PROBE AND OBTAIN SUBPOENAS FOR TAPES OF CONVERSATIONS BETWEEN TRADERS AT MANUFACTURERS HANOVER DURING THE PERIOD OF MR YOUNG'S EMPLOYMENT THERE A LAWYER FOR DLF MAINTAINS MS MCCORMACK ACTED IRRESPONSIBLY SHE NEVER AT ANY TIME RAISED ANY OF HER SUPPOSED CONCERNS WITH ANY OF HER EMPLOYERS SAID RAYMOND LEVITES COUNSEL FOR THE FIRM AND ITS PRINCIPALS SHE JUST STOLE THE COMPANY'S RECORDS AND SENT A FAX TO THE DA'S OFFICE HE SAID ADDING THAT MS MCCORMACK HADN'T PERFORMED WELL IN HER WORK AND WAS ON NOTICE THAT SHE MIGHT BE FIRED MS MCCORMACK STRONGLY DISPUTED THIS ACCOUNT SAYING THAT SHE HAD SEVERAL TIMES URGED HER BOSSES TO DISASSOCIATE THEMSELVES FROM MR PHARAON AS RUMORS AND REPORTS CIRCULATED OF HIS LINKS TO BCCI NEW YORK STATE INVESTIGATORS STARTED TO RECONSTRUCT DLF'S TRADING THEY FOCUSED ON A SERIES OF 199091 TRADES INVOLVING THE BANK'S MR YOUNG AND DLF'S MR LIBERATORE THEY NOTICED THAT MR YOUNG HAD JOINED DLF FOR SOME MONTHS IN 1991 AFTER LEAVING MANUFACTURERS HANOVER IN DECEMBER 1990 THEY SUBPOENAED BANK VOICETAPES RELATING TO DLF TRADES ALTHOUGH THE BANK HAD DESTROYED SOME NEW YORK TAPES IT DID HAVE TAPES FROM LONDON OF MR YOUNG'S TRADING CONVERSATIONS THE FEDERAL RESERVE'S ENFORCEMENT NOTICE PROVIDES AN ILLUMINATING ACCOUNT OF HOW MR YOUNG ALLEGEDLY USED HIS MANUFACTURERS HANOVER JOB TO ORCHESTRATE TRADES THAT BENEFITED HIMSELF AND HIS ASSOCIATES OUTSIDE THE FIRM WHILE COSTING THE BANK AS MUCH AS 1 MILLION IN POTENTIAL EXTRA PROFIT AFTER A RAPID TWOYEAR RISE THROUGH THE RANKS OF THE BANK'S TRADERS SPECIALIZING IN DEBT SECURITIES OF LESSDEVELOPED COUNTRIES OR LDCS MR YOUNG WAS TOLD TO ESTABLISH AN LDC DEBTTRADING UNIT IN LONDON HE TRANSFERRED THERE IN THE SPRING OF 1990 WITHIN MONTHS MR YOUNG AGREED TO PURCHASE 62 MILLION GERMAN MARKS OF COLOMBIAN JUMBO DEBT FROM DEUTSCHE SUDAMERIKANISCHE BANK AG AT 6175 OF THE FACE VALUE THE DOCUMENT ALLEGES THAT THE BANK PLANNED TO HOLD THE PAPER FOR A SUBSTANTIAL PERIOD HOPING FOR PRICE GAINS AS COLOMBIA RENEGOTIATED BANK LOANS BUT LESS THAN THREE MONTHS LATER MR YOUNG WAS ATTEMPTING TO FORM AN INVESTMENT GROUP INCLUDING HIMSELF TO INVEST IN LDC DEBT ALTHOUGH MANUFACTURERS HANOVER HAD A WRITTEN POLICY BARRING EMPLOYEES FROM INVESTING IN LDC DEBT MR YOUNG ASKED PERMISSION TO INVEST IN A VENTURE ASSOCIATED WITH DLF HE WAS TOLD THAT HIGHERUPS AT THE BANK WOULD HAVE TO BE CONSULTED HOWEVER HE NEVER DID GAIN THAT PERMISSION AROUND THE SAME TIME MR YOUNG TOLD MR LIBERATORE THAT THE BANK'S COLOMBIA DEBT PAPER WOULD BE AN ATTRACTIVE INVESTMENT FOR THE PROPOSED VENTURE THE FED NOTICE ALLEGES SOON AFTERWARD IN NOVEMBER 1990 MR YOUNG TOLD TRADER ERIC BEAL AT MANUFACTURERS HANOVER THAT THE BANK'S INTEREST IN THE COLOMBIAN DEBT PAPER SHOULD BE SOLD MR YOUNG SAID THE TRADER SHOULD AUCTION OFF THE HOLDING BY SOLICITING BIDS AND GIVING MR LIBERATORE THE RIGHT TO MATCH THE HIGHEST BID RECEIVED MR BEAL WASN'T NAMED IN THE DOCUMENT AND HASN'T BEEN ACCUSED OF ANY WRONGDOING THAT SAME DAY THE HEAD TRADER IN MR BEAL'S SECTION SAID HE DIDN'T BELIEVE ALL OF THE COLOMBIAN DEBT PAPER SHOULD BE SOLD BECAUSE THE BANK HAD BOUGHT IT WITH A VIEW TOWARD LONGERTERM APPRECIATION BUT MR YOUNG LATER CONVINCED MR BEAL TO SELL THE BANK'S HOLDING ANYWAY IT WAS SOLD TO A COMPANY THROUGH MR LIBERATORE AT 675 OF THE FACE VALUE AND EMBEDDED IN THE AGREEMENT WAS AN OPTION TO NAME AN ADDITIONAL PUCHASER WHICH IN TURN SOLD A PORTION OF THE PAPER TO AN ENTERPRISE FORMED BY MR YOUNG AFTER HE LEFT THE BANK ACCORDING TO THE FED IN AUGUST THROUGH NOVEMBER 1991 THE DEBT POSITIONS WERE SOLD AT 90 TO 93 OF FACE VALUE REAPING 500000 IN PROFITS FOR MR YOUNG AND HIS ASSOCIATES AND 1 MILLION IN PROFITS FOR ALL BUYERS COMBINED 9305210123 930521 WELCOME TO ADULTHOOD BY DAVID V CHARTRAND AUTHOR'S NOTE FOLLOWING IS THE TEXT OF THE COMMENCEMENT SPEECH I PLAN TO DELIVER SOMETIME SOON JUST AS SOON AS SOME HIGH SCHOOL INVITES ME TO BE ITS COMMENCEMENT SPEAKER MOST OF YOU GRADUATES ARE NO DOUBT SALIVATING ABOUT THE NEW EXPERIENCES THAT AWAIT YOU AS COLLEGE FRESHMEN LIKE BEING ABLE TO EAT PIZZA EVERY DAY FOR BREAKFAST I AM NOT HERE TO TITILLATE YOU WITH SUCH NOTIONS WHAT I WISH TO ALERT YOU TO ARE THE SIGHTS AND SOUNDS THAT WON'T BE THERE WHEN YOU ARE LEFT ON CAMPUS TO FEND FOR YOURSELVES YOU'LL KNOW RIGHT OFF THAT THIS ISN'T HIGH SCHOOL ANYMORE WHEN YOU WAKE UP AND REALIZE THERE IS NO ONE TELLING YOU TO GET OUT OF BED TO GET BACK IN BED TO TURN OFF THE TELEVISION TO AVOID STRANGERS TO GO TO BED AND I SWEAR I AM NOT KIDDING THIS TIME TO QUIT PICKING YOUR NOSE TO WIPE YOUR NOSE BUT NOT ON YOUR SLEEVE TO HELP WITH THE DISHES TO COMB YOUR HAIR CUT IT OR GET IT OUT OF YOUR EYES TO MAKE YOUR BED TO STAND UP STRAIGHT TO SPEAK UP TO CLEAN THE PIG STY IN YOUR ROOM TO COME HERE RIGHT NOW BEFORE I COUNT TO THREE TO LOOK AT YOUR MOTHER WHEN SHE TALKS TO YOU TO NOT LOOK AT YOUR MOTHER THAT WAY TO EAT YOUR DINNER TO TAKE OUT THE TRASH TO SETTLE DOWN TO GROW UP TO STOP GROWING UP SO FAST TO GET IN THE BATHTUB TO GET OUT OF THE BATHTUB TO HURRY UP TO CHECK YOUR SHOES FOR MUD TO GO ASK YOUR FATHER TO DRESS WARM TO SAY THANK YOU TO SAY YOU'RE SORRY TO LOOK BOTH WAYS TO WIPE YOUR HANDS BUT NOT ON YOUR CLEAN SHIRT TO KISS YOUR MOTHER GOODBYE BECAUSE I SAID SO SEE WHAT YOU'RE GOING TO MISS YOU'RE GOING TO MISS HAVING TEACHERS WHO KNOW EVERYONE IN YOUR FAMILY WHO SHOP AND WORSHIP IN YOUR NEIGHBORHOOD BELIEVE ME TO THE UNIVERSITY PROFESSORS YOU'LL BE JUST ANOTHER FACE YOU'LL HAVE TO SIPHON FROM THE WELL OF THEIR KNOWLEDGE AS THEY WILL NOT FORCE YOU TO DRINK FROM IT NEVER AGAIN WILL ANYONE REMIND YOU TO DO YOUR HOMEWORK ON A SUNDAY NIGHT YOU CAN PARTY ALL WEEKEND IT'S YOUR LIFE WASTE IT ONLY IF YOU DARE YOU ARE ABOUT TO JUMP INTO THE DEEP END OF THE POOL OF LIFE TO SINK OR SWIM ON YOUR OWN LET NO ONE THROW YOU IN TOO SOON THERE IS NO SHAME IN WAITING IF YOU AREN'T READY FOR THIS MUCH RESPONSIBILITY AND INDEPENDENCE THEN TAKE SOME TIME OFF FIRST READ TRAVEL COLLEGE WILL STILL BE THERE WHEN YOU GET BACK WHEN YOU'LL BE MORE EQUIPPED TO TAKE WHAT IT HAS TO DISH OUT CAMPUS LIFE WILL NOT SO MUCH BUILD YOUR CHARACTER AS REVEAL IT BRACE YOURSELF NOW FOR THE RELATIVISM YOU WILL FIND ON CAMPUS PROFESSORS AND DORM BUDDIES WILL SUGGEST TO YOU THAT THE RIGHTS AND WRONGS YOU LEARNED AT HOME ARE JUST CIRCUMSTANTIAL GRAYS THAT TO REACH A MORAL CONCLUSION IS TO IMPOSE IT ON THEM STICK TO YOUR GUNS THESE PEOPLE ARE NOT YOUR FRIENDS WATCH OUT FOR RELIGIOUS CULTS THAT PREY ON FRIGHTENED AND LONELY COLLEGE FRESHMEN THERE'S NO HARM SHARING YOUR PRAYERS AND DREAMS WITH THEM BUT WHEN THEY DEMAND YOUR MIND AND YOUR POSSESSIONS IT'S TIME TO WISE UP AND WALK AWAY IF YOU MUST CHOOSE BETWEEN WHAT MOM AND DAD TOLD YOU IS RIGHT AND WRONG AND WHAT YOUR COLLEGE PHILOSOPHY PROFESSOR TELLS YOU MY MONEY IS WITH MOM AND DAD THEY HAVE A BIGGER INVESTMENT IN YOU ONE LAST THING BE NOT SURPRISED BY THE TEARS STREAKING YOUR PARENTS' FACES IN SEPTEMBER AS THEY DROP YOU OFF AT THE DORMITORY THEY ARE NOT SAD THEY WEEP BECAUSE THEY ARE HAVING AN HALLUCINOGENIC EXPERIENCE ALL THEY KNOW IS YESTERDAY YOU WERE LITTLE FROGS AND SNAILS AND PUPPY DOGS' TAILS THEY HAVE NO EARTHLY IDEA WHEN YOU TURNED INTO THIS COCKY YOUNG ADULT IT IS A SURREAL MINDALTERING EXPERIENCE THAT WILL BE MUCH CLEARER TO YOU WHEN YOUR OWN KIDS LEAVE FOR COLLEGE YOU TOO WILL CRY NOW AND THEN AS YOU REALIZE HOW MUCH YOUR FAMILY MEANS TO YOU AND HOW WELL THEY PREPARED YOU FOR THIS MOMENT REMEMBER ALWAYS WHO YOU ARE STAND UP FOR WHAT YOU HAVE BECOME BUT FOR CRYING OUT LOUD STAND UP STRAIGHT BEFORE I COUNT TO THREE MR CHARTRAND IS A COLUMNIST FOR THE OLATHE KAN DAILY NEWS WHERE THIS ARTICLE FIRST APPEARED 9305210122 930521 OTC FOCUS NASDAQ MARKET MOVES STRONGLY HIGHER DESPITE SKID FOR SPECTRUM INFORMATION BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PROPELLED BY COMPUTERDRIVEN BUYING OF LARGE TECHNOLOGY AND COMMUNICATIONS STOCKS THE OVERTHECOUNTER MARKET SURGED BUT SPECTRUM INFORMATION TECHNOLOGIES INC DIVED 49 THE NASDAQ COMPOSITE INDEX JUMPED 700 OR 101 TO 69743 JUST 16 AWAY FROM ITS ALLTIME HIGH OF 70885 ADVANCING ISSUES OUTNUMBERED DECLINERS 1469 TO 1199 ON HEAVY VOLUME OF 3432 MILLION SHARES UP FROM WEDNESAY'S 3183 MILLION THERE ARE SOME BIG BUYERS OUT THERE USING COMPUTER PROGRAMS SAYS GREG RILEY A SENIOR OTC TRADER AT FIRST BOSTON CORP INSTITUTIONAL INVESTORS LOOKING FOR NASDAQ TO REACH NEW HIGHS HAVE BEEN AGGRESSIVELY PUTTING MONEY TO WORK IN THE LARGECAP NAMES TRADERS SAID BEARISH SHORTSELLERS HAD TO COVER THEIR POSITIONS BY BUYING SHARES WHICH BOOSTED SOME STOCKS EVEN HIGHER MICROSOFT ROSE 1 5/8 TO 94 1/8 SUN MICROSYSTEMS LEAPED 2 1/8 TO 30 3/4 AND APPLE COMPUTER CLIMBED 1 1/2 TO 58 3/4 SPECTRUM SHARES PLUNGED 5 3/4 OR 49 TO 6 THE STOCK PLUMMETED WHEN THE VALUE OF A ROYALTY AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH CO APPEARED TO BE MUCH LESS THAN SPECTRUM HAD INDICATED DESPITE YESTERDAY'S ENORMOUS VOLUME IN SPECTRUM 344 MILLION SHARES OR NEARLY 23 TIMES ITS NORMAL VOLUME TRADERS SAID MOST OF THE ACTIVITY CAME FROM INDIVIDUAL INVESTORS ON MAY 11 SPECTRUM SAID AT&T HAD AGREED TO LICENSE SPECTRUM'S TECHNOLOGY FOR SENDING DATA OVER CELLULAR NETWORKS AND POSSIBLY TO INVEST MORE THAN 10 MILLION IN THE MANHASSET NY COMPANY SINCE THAT ANNOUNCEMENT MAY 11 THE STOCK HAD NEARLY TRIPLED TO AN INTRADAY HIGH YESTERDAY OF 13 1/8 THE STOCK'S MIDAFTERNOON TUMBLE YESTERDAY WAS TRIGGERED BY CNBC COMMENTATOR DAN DORFMAN'S QUESTIONING WHETHER SPECTRUM SHOULD EXPECT ANY SUCH WINDFALL ELSEWHERE MCCAW CELLULAR COMMUNICATIONS JUMPED 1 3/4 TO 43 1/2 AND MCI COMMUNICATIONS ROSE 1/2 TO 51 1/8 SEVERAL RIVERBOAT GAMBLING SHARES WERE ACTIVE CASINO MAGIC JUMPED 2 3/8 TO 79 5/8 WHILE PRESIDENT RIVERBOAT CLIMBED 2 TO 43 1/4 BUT GRAND CASINOS SLUMPED 1 1/2 TO 42 1/4 AFTER EARLIER GAINS JUNO LIGHTING CLIMBED 1 1/2 TO 18 1/4 AFTER KIDDER PEABODY ANALYST ELLIOTT SCHLAND CITED THE STOCK'S PRICE AND SOMEWHAT ENCOURAGING APRIL HOUSING STARTS AS REASONS FOR UPGRADING HIS INVESTMENT RATING TO AGGRESSIVE BUY FROM ACCUMULATE THE FIRM MAKES LIGHTING FIXTURES WESTERN PUBLISHING GROUP SLUMPED 1/4 TO 15 3/4 THE PUBLISHER OF CHILDREN'S BOOKS AND VIDEOS REPORTED A FIRSTQUARTER OPERATING LOSS OF 145 A SHARE REFLECTING A CHARGE OF 104 A SHARE THAT COMPARED WITH A 1992 FIRSTQUARTER PROFIT OF NINE CENTS A SHARE MATRIX PHARMACEUTICAL GAINED 1 TO 9 1/2 AS IT REPORTED PROGRESS IN CLINICAL TRIALS OF ITS DRUG FOR GENITAL WARTS OF 187 PATIENTS THE COMPANY SAID 65 COMPLETELY RECOVERED FOLLOWING TREATMENT WITH THE DRUG ALTRON SURGED 2 1/2 TO 14 3/4 SAMUEL ALTSCHULER CHAIRMAN AND PRESIDENT OF THE ELECTRONICS MAKER SAID THE COMPANY EXPECTS TO CONTINUE TO ACHIEVE STRONG GROWTH IN SALES AND EARNINGS THIS YEAR AND IN 1994 NOVELLUS SYSTEMS JUMPED 2 1/2 TO 26 1/2 HAMBRECHT & QUIST ADDED NOVELLUS TO ITS SELECTED STOCK LIST SAYING THE COMPANY COULD BE CLOSE TO WINNING SOME BUSINESS FROM INTEL HARRY'S FARMERS MARKET AN INITIAL OFFERING OF 18 MILLION CLASS A SHARES WAS PRICED AT 17 A SHARE THROUGH UNDERWRITERS LED BY ROBINSONHUMPHREY CO IT ENDED THE DAY AT 19 1/2 THE COMPANY OWNS PERISHABLE GOODS MEGASTORES AND PLANS TO USE PROCEEDS TO EXPAND AND TO REPAY DEBT 9305210121 930521 IMC FERTILIZER STOCK DROPS ON BLASTRELATED LAWSUIT NORTHBROOK ILL IMC FERTILIZER GROUP INC'S SHARES TUMBLED 11 AFTER THE COMPANY DISCLOSED THAT IT FACES ADDITIONAL FINANCIAL AND LEGAL DIFFICULTIES RELATED TO A 1991 PLANT EXPLOSION IMC SAID THAT ALBERTA NATURAL GAS CO'S ANGUS CHEMICAL UNIT LAST MONTH FILED A LAWSUIT IN LOUISIANA SEEKING ADDITIONAL DAMAGES FROM IMC AND ITS INSURERS IT ALSO SAID THAT AS A RESULT OF A BIG RECENT LEGAL SETTLEMENT INVOLVING THE SAME PLANT BLAST IMC IS NO LONGER IN COMPLIANCE WITH CERTAIN LOAN COVENANTS IMC'S FINANCIAL STRAITS COULD MEAN DIFFICULTY IN OBTAINING ADDITIONAL FINANCING IT IS SEEKING THE COMPANY SAID IT ADDED THAT CONTINUED WEAK INDUSTRY CONDITIONS ARE LIKELY TO MEAN IT WILL REPORT AN OPERATING LOSS FOR THE FOURTH QUARTER ENDING JUNE 30 IN LATE NEW YORK STOCK EXCHANGE TRADING IMC SHARES SLID 375 TO HIT A NEW 52WEEK LOW OF 29875 IMC HAS 100 MILLION OF NOTES THAT WERE DUE TO MATURE ALSO ON APRIL 22 BUT PRUDENTIAL INSURANCE CO OF AMERICA THE HOLDER OF THE NOTE HAD AGREED TO EXTEND THE DUE DATE UNTIL JUNE 30 PRUDENTIAL HAS ALSO TENTATIVELY GRANTED IMC A WAIVER UNTIL JUNE 30 FOR ITS FAILURE TO COMPLY WITH THE COVENANTS OF ANOTHER 220 MILLION OF NOTES IMC ALSO SAID THAT IT HAS RECEIVED A COMMITMENT FROM A BANK GROUP FOR A NEW 100 MILLION WORKINGCAPITAL CREDIT FACILITY IMC SAID IT IS SEEKING AN ADDITIONAL 225 MILLION TO RESTRUCTURE SOME OF ITS DEBT AND TO PROVIDE ANGUS WITH A 606 MILLION PAYMENT IT IS OBLIGED TO PROVIDE UNDER THE SETTLEMENT ARRANGEMENT 9305210120 930521 PC SALES SOARED 194 IN EUROPE IN FIRST QUARTER BIG BRAND NAMES WERE WINNERS BUT SLOWDOWN LOOMS ANALYSTS SAY BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE EUROPEAN PERSONAL COMPUTER MARKET CONTINUED TO BUSTLE IN THE FIRST QUARTER MAINLY BENEFITING BIG BRAND NAMES SUCH AS COMPAQ AND IBM BUT MARKET ANALYSTS WARN THAT THE HOT STREAK WON'T LAST IN THE FIRST QUARTER SALES OF PERSONAL COMPUTERS IN EUROPE JUMPED 194 TO 25 MILLION MACHINES NEARLY MATCHING THE 208 RISE OF THE FOURTH QUARTER ACCORDING TO A QUARTERLY WALL STREET JOURNAL EUROPE/DATAQUEST EUROPE LTD REPORT ON THE EUROPEAN PC MARKET BECAUSE OF A YEAROLD PRICE WAR HOWEVER AVERAGE PC PRICES FELL AND TOTAL INDUSTRY REVENUE SLIPPED 33 TO 51 BILLION MANY BIG BRANDNAME PC MAKERS TOOK MOST OF THE BUSINESS BOOSTING REVENUES AT THE EXPENSE OF WEAKER PLAYERS EVERYBODY WAS POSITIVELY SURPRISED BY THE STRONG GROWTH IN THE FIRST QUARTER SAYS ANDREAS BARTH HEAD OF COMPAQ'S EUROPEAN OPERATIONS AS IN THE FOURTH QUARTER LOWER PC PRICES SPURRED DEMAND DESPITE WEAK EUROPEAN ECONOMIES IN THE PAST 12 MONTHS AVERAGE PC PRICES IN EUROPE HAVE PLUMMETED BY NEARLY 70 ON SOME MODELS BUT THE PACE OF PRICECUTTING IS ALREADY SLOWING WHILE THAT MAY HELP THE INDUSTRY INCREASE ITS PROFITS IT COULD ALSO SPELL THE END OF THE SIXMONTHOLD BUYING SPREE INDUSTRY EXECUTIVES SAY SAYS COMPAQ'S MR BARTH SO WE HAVE TWO QUARTERS IN A ROW OF VERY GOOD GROWTH THE QUESTION IS IS THIS GOING TO CONTINUE THAT WAY MANY ANALYSTS THINK NOT WE'RE PROBABLY AT THE PEAK OF DEMAND RIGHT NOW AND WE'LL SEE IT SLOWING DOWN AS WE MOVE INTO THE SECOND HALF OF THE YEAR SAYS CHRISTOPHER FELL HEAD EUROPEAN PCWATCHER FOR DATAQUEST A MARKETRESEARCH UNIT OF DUN & BRADSTREET CORP DATAQUEST EXPECTS SHIPMENT GROWTH RATES TO SLOW TO AN AVERAGE 13 TO 14 FOR THE FULL YEAR WHILE TOTAL REVENUE INCREASES VERY SLIGHTLY COMPAQ'S MR BARTH GENERALLY CONCURS WE'LL SEE SOME SLOWER PC INDUSTRY GROWTH FOR THE REST OF THE YEAR UNFORTUNATELY THE EUROPEAN ECONOMIES ARE ALL VERY WEAK ON THE OTHER HAND THE INDUSTRY ALSO HAS OPTIMISTS ERIC CADOR MARKETING CENTER DIRECTOR FOR HEWLETTPACKARD CO'S PC DIVISION IN GRENOBLE FRANCE EXPECTS HIS OWN COMPANY TO SHIP 24 TO 25 TIMES AS MANY PCS IN EUROPE IN THE CURRENT QUARTER AS IT DID A YEAR EARLIER AND HE PREDICTS REVENUE WILL DOUBLE FROM THE YEARAGO LEVEL I DON'T THINK IT'S A BUBBLE DESTINED TO BURST HE SAYS IF MOST OF YOUR GROWTH IS COMING FROM ONE OR TWO COUNTRIES IT'S RISKY BUT HERE IT'S IN EVERY SINGLE COUNTRY IT LOOKS EXCELLENT ALL THE SIGNS ARE GREEN AMONG THE MOST DRAMATIC INDUSTRY NUMBERS FROM THE FIRST QUARTER WERE PRICES IN THE FIRST QUARTER THE MOST COMMONLY SOLD PC MODELS WERE BASED ON 486SX MICROPROCESSOR CHIPS THEY ACCOUNTED FOR 26 OF ALL PC SHIPMENTS OVER THE PAST 12 MONTHS THEIR STREET PRICE AVERAGED OVER ALL BRANDS AND CONFIGURATION OF MONITOR KEYBOARD HARD DISK AND BASIC PACKAGED SOFTWARE FELL IN FRANCE BY 603 TO 13405 FRENCH FRANCS 2446 IN GERMANY BY 678 TO 4173 DEUTSCHE MARKS 2567 AND IN BRITAIN BY 492 TO 1570 2421 THOSE FIGURES ARE DATAQUEST ESTIMATES OF WHAT A BUYER ACTUALLY PAYS AFTER STANDARD RETAIL DISCOUNTS AS OPPOSED TO THE HIGHER LIST PRICES PUBLISHED BY MANUFACTURERS PRICES ARE LOWER IN THE BUSTLING US MARKET BUT THE LONGSTANDING GAP BETWEEN US AND EUROPEAN PC PRICES HAS SHRUNK BECAUSE OF THE INTENSE EUROPEAN PRICECUTTING AND A RISE IN THE DOLLAR'S VALUE MR BARTH FOR INSTANCE ESTIMATES COMPAQ'S AVERAGE PC PRICES AS MEASURED IN DOLLARS ARE CURRENTLY ABOUT 10 HIGHER IN EUROPE THAN IN THE US DOWN FROM A 25 MARKUP A YEAR AGO GENERALLY INDUSTRY ANALYSTS SAY HIGHER LABOR AND DISTRIBUTION EXPENSES IN EUROPE CAN ADD AS MUCH AS 15 TO THE COST OF A PC HIGHER MARKUPS WERE COMMON IN THE PAST SIMPLY BECAUSE COMPETITION WAS LESS INTENSE 9305210119 930521 STOCK PROMOTER SUES TWO STATE REGULATORS OVER ALLEGED LEAKS NEWARK NJ STOCK PROMOTER ROBERT E BRENNAN SUED TWO TOP NEW JERSEY SECURITIES REGULATORS CHARGING THEM WITH LEAKING INFORMATION FROM AN INVESTIGATION OF HIM TO JOURNALISTS AND THE SECURITIES AND EXCHANGE COMMISSION AMONG OTHERS MR BRENNAN SAID HE IS SEEKING 50 MILLION IN DAMAGES FROM RICHARD W BARRY HEAD OF ENFORCEMENT FOR THE NEW JERSEY BUREAU OF SECURITIES AND A JARED SILVERMAN CHIEF OF THE SECURITIES OFFICE IN A LAWSUIT FILED IN A NEW JERSEY STATE COURT MR BRENNAN CLAIMED MR BARRY HAD A SERIES OF MEETINGS LAST YEAR WITH REPORTER RICHARD STERN OF FORBES MAGAZINE AT WHICH HE LEAKED PRIVATE INFORMATION TO MR STERN LAST OCTOBER MR STERN WROTE A COVER STORY FOR THE MAGAZINE HEADLINED WHY CAN'T THEY STOP HIM ASSERTING THAT MR BRENNAN HAS PROFITED HANDSOMELY FROM MANIPULATION OF LOWPRICED STOCKS MR BRENNAN HAD CALLED THE STORY LIES IN A HIGHLY PUBLICIZED NEWSPAPER ADVERTISEMENT MR BRENNAN ALSO CLAIMED THAT MR SILVERMAN LEAKED NONPUBLIC INFORMATION TO A REPORTER FOR THE OTTAWA CITIZEN IN CANADA AND THAT THE NEW JERSEY REGULATORS PASSED ON INFORMATION TO THE CHICAGO OFFICE OF THE SEC LAST MAY THE SEC BEGAN A PARALLEL INVESTIGATION OF MR BRENNAN CALLS TO MESSRS BARRY AND SILVERMAN WERE REFERRED TO A SPOKESMAN FOR THE NEW JERSEY ATTORNEY GENERAL'S OFFICE WHO DECLINED COMMENT UNTIL THE OFFICE HAS COMPLETED A REVIEW OF THE 30PAGE COMPLAINT 9305210118 930521 INTERNATIONAL KUCHMA QUITS AS UKRAINIAN PRIME MINISTER SUDDEN MOVE COMES AFTER SPECIAL POWERS DEBATE PRESIDENT'S ROLE IS CITED BY NATALIA A FEDUSCHAK SPECIAL TO THE WALL STREET JOURNAL KIEV UKRAINE LEONID KUCHMA UKRAINE'S DYNAMIC AND MARKETORIENTED PRIME MINISTER UNEXPECTEDLY RESIGNED MR KUCHMA'S ANNOUNCEMENT CAME AFTER THREE DAYS OF HEATED DEBATE ABOUT WHETHER TO EXTEND HIS GOVERNMENT'S SPECIAL POWERS FOR ANOTHER YEAR AND GIVE HIM CONTROL OVER KEY FINANCIAL INSTITUTIONS AND THE COUNTRY'S PRESIDENTIAL REPRESENTATIVES MR KUCHMA WHO WAS ELECTED PRIME MINISTER IN OCTOBER WAS GRANTED SPECIAL POWERS IN DECEMBER TO BOLSTER THE AILING UKRAINIAN ECONOMY THOSE POWERS EXPIRED THIS WEEK MR KUCHMA'S POSITION WAS DEALT A FATAL BLOW WHEN UKRAINE'S PRESIDENT LEONID KRAVCHUK AND THE PARLIAMENT CHAIRMAN IVAN PLIUSCH CAME OUT AGAINST EXTENDING THE SPECIAL POWERS INSTEAD MR KRAVCHUK PROPOSED CHANGES IN THE COUNTRY'S CONSTITUTION TO ALLOW THE PRESIDENT TO HEAD THE GOVERNMENT MR KRAVCHUK ALSO SAID A NEW POSITION OF VICE PRESIDENT SHOULD BE CREATED AND THAT PARLIAMENT SHOULD BE ABLE TO VETO ANY GOVERNMENT DECREES UNDER THE CURRENT CONSTITUTION THE PRIME MINISTER HEADS THE GOVERNMENT AND THE PRESIDENT IS HEAD OF THE EXECUTIVE BRANCH BUT THE EMBATTLED MR KUCHMA WHO HAD HEADED THE WORLD'S LARGEST ROCKET FACTORY WHEN UKRAINE WAS PART OF THE SOVIET UNION STUNNED MEMBERS OF PARLIAMENT WHEN BEFORE THE NOON BREAK HE CAME TO THE PODIUM AND SAID I DIDN'T HEAR ONE GOOD WORD IN FAVOR OF THE GOVERNMENT IT IS CLEAR WE WON'T GET THE SPECIAL POWERS EVERY GOVERNMENT NEEDS GOOD CADRES FINANCES AND UNITY THIS GOVERNMENT HAS NEITHER THE FIRST NOR THE SECOND NOR THE THIRD I HAVE ALWAYS THOUGHT THAT THE POPULARLY ELECTED PRESIDENT SHOULD TAKE ALL THE RESPONSIBILITY ON HIMSELF I ASK YOU TO ACCEPT MY RESIGNATION HE THEN WALKED OUT OF THE PARLIAMENTARY CHAMBERS UNDER THE CONSTITUTION PARLIAMENT MUST ACCEPT MR KUCHMA'S RESIGNATION LAWMAKERS VOTED TO POSTPONE ANY DECISION ON THE PRIME MINISTER'S ANNOUNCEMENT IT WASN'T CLEAR WHO MIGHT SUCCEED MR KUCHMA WHILE IT IS ALMOST CERTAIN THAT MR KRAVCHUK'S PROPOSAL WILL BE ACCEPTED BY LAWMAKERS AS EARLY AS TODAY MANY HERE BELIEVE THAT THE PRESIDENT'S ANNOUNCEMENT WAS A CALCULATED MOVE TO PUT HIM BACK IN THE SPOTLIGHT MR KRAVCHUK HAS BEEN CRITICIZED FOR DISTANCING HIMSELF FROM ECONOMIC REFORM SINCE HIS ELECTION IN DECEMBER 1991 BUT INSTEAD OF TAKING ACTION MR KRAVCHUK HAS REPEATEDLY SAID IT WAS HIS JOB TO LEAD UKRAINE TOWARD DEMOCRACY AND THE PRIME MINISTER'S JOB TO CARRY OUT ECONOMIC REFORM YET THAT POSITION HAS MADE HIM AN INCREASINGLY INSIGNIFICANT FORCE IN UKRAINIAN POLITICS LAWMAKERS SAID 9305210117 930521 SATELLITE TECHNOLOGY'S IRAN SHIPMENT DRAWS FEDERAL INVESTIGATION COSTA MESA CALIF FEDERAL OFFICIALS ARE INVESTIGATING A SHIPMENT TO IRAN BY SATELLITE TECHNOLOGY MANAGEMENT INC IN AFFIDAVITS FILED IN FEDERAL COURT IN LOS ANGELES FEDERAL OFFICIALS HAVE ALLEGED THAT THE MAKER AND MARKETER OF SATELLITE COMMUNICATIONS SYSTEMS ATTEMPTED TO SHIP A 14 MILLION SYSTEM AND RELATED COMPUTER TO IRAN BY FALSELY DECLARING THAT THE SHIPMENT WAS LEGAL THEY SAY THE SHIPMENT OF THE COMPUTER WAS ILLEGAL UNDER RULES RESTRICTING NUCLEAR PROLIFERATION COMPANY ATTORNEY DONALD WEADON JR OF THE WASHINGTON LAW FIRM OF DICKSTEIN SHAPIRO & MORIN SAID THE SHIPMENT IS ALLOWED UNDER REGULATIONS WHEN THE COMPUTER IS PART OF A SYSTEM SUCH AS THE ONE ORDERED IN DECEMBER 1992 BY IRAN ELECTRONIC INDUSTRIES HE SAID THE SYSTEM AND COMPUTER WERE SEIZED BEFORE EXPORT ON MAY 8 A DEPARTMENT OF COMMERCE SPECIAL AGENT WON A SEARCH WARRANT AND RAIDED COMPANY RECORDS IN COSTA MESA ON MAY 11 THE COURT DOCUMENTS SAY AFTER THE SHIPMENT WAS INTERRUPTED THE COMPANY RESTATED ITS FIRSTQUARTER NET INCOME AND SALES EARLIER THIS WEEK SUBTRACTING THE AMOUNTS FROM THE SALE TO IRAN THE COMPANY SAID ITS REVENUE IS BEING REDUCED FROM ABOUT 44 MILLION TO ABOUT 3 MILLION WHILE EARNINGS WERE REDUCED FROM 949000 OR 20 CENTS A SHARE TO ABOUT 455000 OR NINE CENTS A SHARE A YEAR EARLIER THE COMPANY REPORTED ABOUT 45 MILLION IN REVENUE WITH NET EARNINGS OF 783000 OR 24 CENTS A SHARE THE COMPANY'S STOCK WAS QUOTED AT 6875 IN OVERTHECOUNTER TRADING THURSDAY DOWN 375 CENTS FROM A DAY EARLIER THE SATELLITE SYSTEM IS A VSAT OR VERY SMALL APERTURE TERMINAL SYSTEM SPECIALIZED FOR COMMUNICATIONS BETWEEN OFFICES OR BUREAUS IN A COMMON GROUP MR WEADON SAID OTHER COMPANIES HAVE SOLD THEM TO IRAN COMMERCE DEPARTMENT OFFICIALS DECLINED COMMENT A JUSTICE DEPARTMENT OFFICIAL SAID TO BE FAMILIAR WITH THE CASE COULD NOT BE REACHED FOR COMMENT 9305210116 930521 THE AMERICAS HOW TO AVOID THE RETURN OF LATIN POPULISM BY ELLIOTT ABRAMS THE KEY QUESTION FACING THOSE WHO INVEST IN LATIN AMERICA IS NOT WHETHER OPPORTUNITIES EXIST TODAY BUT WHETHER THEY WILL SURVIVE TOMORROW WILL GOVERNMENTS AND POLITICIANS EMERGE ONCE AGAIN WHO RAIL AGAINST FOREIGN INVESTORS INFLATE THE CURRENCY AND ENLARGE THE GRASP OF THE STATE THIS WEEK'S NEWS IS A REMINDER THAT IT CAN GO EITHER WAY IN MEXICO PRESIDENT CARLOS SALINAS DE GORTARI ANNOUNCED HIS INTENTION TO FREE THE CENTRAL BANK OF GOVERNMENT CONTROL MEXICO WOULD JOIN CHILE AS THE TWO LATIN COUNTRIES WITH INDEPENDENT CENTRAL BANKS TAKING ANOTHER LARGE STEP TOWARD WHAT PRESIDENT SALINAS HAS CALLED FIRST WORLD STATUS MEANWHILE VENEZUELA'S ENTIRE CABINET RESIGNED YESTERDAY JUST AS THE SUPREME COURT RULED THAT PRESIDENT CARLOS ANDRES PEREZ MUST STAND TRIAL ON EMBEZZLEMENT CHARGES THE CHARGES AND PRESIDENT PEREZ'S FORCED SUSPENSION FROM OFFICE MUST MAKE INVESTORS WONDER WHETHER VENEZUELA WILL HEAD TOWARD A MORE OPEN POLITICAL AND ECONOMIC SYSTEM OR TOWARD POLITICAL INSTABILITY AND ECONOMIC DRIFT WHATEVER THE SHORTTERM SUCCESS OF ECONOMIC REFORM PROGRAMS LARGE PORTIONS OF LATIN POPULATIONS CONTINUE TO LIVE IN SUCH POVERTY AS TO JEOPARDIZE POLITICAL STABILITY AND A POSITIVE GROWTH PATTERN DATA SHOWING POSITIVE BUDGETARY FIGURES AND INCREASED INVESTMENT DO NOT MATTER TO THEM NEARLY AS MUCH AS THEIR OWN LEVEL OF SUBSISTENCE FROM THE PEASANT WHO CANNOT GET TITLE TO HIS LAND TO THE SHOPKEEPER OR JITNEY DRIVER FORCED INTO THE UNDERGROUND ECONOMY BECAUSE HE OR VERY OFTEN SHE CANNOT GET A LICENSE TO CONDUCT BUSINESS THE PULL OF POPULIST RHETORIC IS FAR FROM DEAD THE SYSTEM STILL SEEMS DESIGNED TO STIFLE INITIATIVE AND COMPETITION AND TO ENSURE THAT CHILDREN GROW UP TO BE AS POOR OR AS RICH AS THEIR PARENTS ECONOMIC REFORM PROGRAMS IN THE 1980S DESIGNED TO PAY OFF FOREIGN LOANS AND MAINTAIN THE STATUS QUO RATHER THAN IMPROVE LOCAL STANDARDS OF LIVING WERE OPPOSED BY MOST LATIN VOTERS LIKEWISE IF TODAY'S INVESTMENTS APPEAR DESIGNED MERELY TO ENRICH FOREIGN INVESTORS AND LOCAL ELITES OPPOSITION IS GUARANTEED A CRONY CAPITALISM THAT ENRICHES LATIN AMERICA'S ELITES AND THEIR FOREIGN PARTNERS IS POLITICALLY DOOMED A GENUINELY COMPETITIVE MARKET IS NEEDED TO BREAK THE HOLD OF THE OLD ELITES ON THE STATE AND THE ECONOMY AND TO PROVIDE NEW OPPORTUNITIES FOR THE POOR TO GROW INTO THE MIDDLE CLASS WHENEVER SUCH CONDITIONS HAVE BEEN MET PUBLIC SUPPORT FOR STABLE MARKETORIENTED POLITICAL PARTIES AND FOREIGN INVESTMENT HAS BEEN FORTHCOMING FREE MARKETS MUST BE SEEN AS THE ECONOMIC COROLLARY TO FREE ELECTIONS ENDING THE DOMINATION OF SMALL AND PRIVILEGED GROUPS FINANCED EXCLUSIVELY BY OUTSIDERS THE KEY TO THIS TRANSITION IS MAKING SURE THAT REFORMS AND ANY TEMPORARY HARDSHIP ARE ACCOMPANIED BY EXPANDING OPPORTUNITIES AND BETTER CONDITIONS IN THE LONG RUN SOME NUMBERS MAY MAKE THE POINT IN 1991 VENEZUELA'S GROSS DOMESTIC PRODUCT PER CAPITA WAS 351915 HIGHER THAN CHILE'S IS TODAY HOW IS IT THEN THAT AFTER VENEZUELA'S DECADESLONG OIL BOOM THE INFANT MORTALITY RATE IS TWICE AS HIGH IN VENEZUELA THAN IN CHILE BECAUSE THE NATION'S WEALTH WAS CAPTURED BY A SMALL ELITE WORKING HANDINGLOVE WITH POLITICAL POWER BROKERS AND THE VENEZUELAN MASSES HAD LITTLE CHANCE TO SHARE IN IT CHILE'S GDP GROWTH REFLECTS A BROADER INCREASE IN THE WEALTH OF THE CHILEAN PEOPLE INCLUDING A DROP IN UNEMPLOYMENT AN INCREASE IN AVERAGE WAGES AND GROWTH IN THE SIZE OF THE MIDDLE CLASS VENEZUELA'S ECONOMIC GROWTH SURPASSED 9 LAST YEAR BUT THERE IS MASSIVE PUBLIC RESENTMENT OF THE PEREZ GOVERNMENT THE COUNTRY'S ECONOMIC POLICIES MAY SEEM FINE TO THE INTERNATIONAL MONETARY FUND BUT TO MOST VENEZUELANS THEY SEEM A MIX OF INDIFFERENCE AND CORRUPTION PRESIDENT PEREZ'S REMOVAL FROM OFFICE WAS NOT INEVITABLE BUT MILLIONS OF VENEZUELANS HAVE BEEN CLAMORING FOR IT AND WILL WELCOME IT WITH RELIEF AND EVEN JOY CHILE BY CONTRAST SHOWS THE ROAD LATIN AMERICA MUST TAKE ITS INTERNATIONAL COMPETITIVENESS IS INCREASING WHILE EQUITY AND OPPORTUNITY GROW AT HOME IT'S NO ACCIDENT THE GOVERNMENT BELIEVES THAT INVESTMENT IN HUMAN CAPITAL ABOVE ALL EDUCATION IS CRITICAL TO SUSTAINING ECONOMIC GROWTH AN INDEPENDENT CENTRAL BANK HELPS GUARANTEE THAT WAGES MAINTAIN THEIR BUYING POWER AND IN THE LAST FEW YEARS CONSUMPTION BY THE POOREST 40 OF CHILEANS HAS GROWN FASTER THAN THE NATIONAL ECONOMY THE RICH ARE GETTING RICHER BUT SO ARE THE POOR CHILE'S DUAL EMPHASIS ON INCREASING INCENTIVES FOR PRODUCTION WHILE INCREASING OPPORTUNITIES FOR CONSUMERS HAS BEEN A PARTICULAR HALLMARK OF ITS SUCCESS BY PRIVATIZING THE SOCIAL SECURITY SYSTEM CHILE AT ONCE INCREASED OPPORTUNITIES FOR SAVERS WHILE REVITALIZING THE CAPITAL MARKETS BY ENDING THE STRANGLEHOLD OF SEVERAL UNIONS ON WHOLE SECTORS OF THE ECONOMY FLEXIBILITY FOR BOTH WORKERS AND EMPLOYERS WAS INCREASED REGULATIONS THAT DISCOURAGED NEW BUSINESSES AND PREVENTED ACCESS TO INNOVATIVE PRODUCTS HAVE BEEN ELIMINATED AND THE CORPORATE INCOME TAX HAS BEEN LOWERED TO 10 ANOTHER FACTOR IN CHILE'S SUCCESS STORY IS THAT CHILEANS CHANNEL 22 OF ALL INCOME DIRECTLY INTO SAVINGS OR INVESTMENTS WHEREAS VENEZUELANS TEND TO CONSUME IMMEDIATELY CHILEANS DON'T HAVE A STRONGER CULTURAL PREDISPOSITION TOWARD SAVINGS OR FISCAL RESPONSIBILITY THAN DO VENEZUELANS THE DIFFERENCE LIES IN CHILEAN POLICIES WHICH REWARD SAVINGS AND INVESTMENT THROUGH POSITIVE INTEREST RATES AND LOW INVESTMENT AND CORPORATE TAXES OF COURSE CHILE IS NOT ALONE MEXICO'S PRESIDENT SALINAS ALSO BELIEVES THAT BROADENING ECONOMIC OPPORTUNITIES IS A PRECONDITION FOR GROWTH IN ORDER TO DO THIS HE HAS BROKEN TABOO AFTER TABOO FROM AN ASSAULT ON THE COLLECTIVIST EJIDO FARMING SYSTEM TO PRIVATIZATION OF THE BANKS TO THE ULTIMATE TABOO FORMING A CLOSE FRIENDSHIP WITH THE US WATCHING PRESIDENT SALINAS CHANNEL MEXICAN NATIONALISM AWAY FROM USBASHING AND INTO NATIONBUILDING IT IS CLEAR THAT ECONOMIC REFORMS IN LATIN AMERICA CAN WIN A CONSTITUENCY POPULISM IN THE FORM OF CORPORATIVISM AND STATIST INTERVENTIONISM HAS RETURNED TO LATIN AMERICA AGAIN AND AGAIN BECAUSE THE BENEFITS OF DEVELOPMENT HAVE BEEN SIPHONED OFF BY A SMALL ELITE THAT USES THE GOVERNMENT TO PROTECT ITS PRIVILEGES WHEN EQUALITY OF OPPORTUNITY REPLACES GOVERNMENT OF BY AND FOR THE RICH WHEN NATIONALISM COMES TO MEAN INVESTING IN THE NATION'S HUMAN CAPITAL RATHER THAN BLAMING FOREIGNERS FOR THE NATION'S ILLSTHEN POPULISM WILL RECEDE INTO LATIN HISTORY 9305210115 930506 COUNTERPOINT AN ASBESTOS SETTLEMENT WITH A HIDDEN AGENDA BY FREDERICK M BARON I AM A PLAINTIFF'S TRIAL LAWYER OF THE TYPE THAT IS REGULARLY SKEWERED ON THE EDITORIAL PAGE OF THIS NEWSPAPER FOR DOING SUCH TERRIBLE THINGS AS REPRESENTING CLIENTS ON A CONTINGENCY FEE BASIS MANY OF MY CLIENTS OF COURSE ARE ORDINARY CITIZENS WHO COULD NEVER AFFORD A LAWYER MUCH LESS A GOOD LAWYER ON THE HOURLY RATE FORMULA USED BY CORPORATE LAWYERS BUT NEVER MIND THAT I HAVE SOMETHING TO SAY ABOUT A CLASS ACTION SETTLEMENT THAT WILL BE REVIEWED OVER THE NEXT SEVERAL WEEKS FINANCIAL DISCLOSURES AND BANKRUPTCY AND WHAT BETTER PLACE THAN HERE I HAVE A NEIGHBOR WHOM I'LL CALL MR JONES MR JONES WORKED FOR YEARS PUTTING ASBESTOS INSULATION INTO BUILDINGS AND FACTORIES MUCH OF THE ASBESTOS INSULATION HE USED WAS MADE BY ARMSTRONG WORLD INDUSTRIES THE CERTAINTEED SUBSIDIARY OF THE FRENCH CONGLOMERATE SAINTGOBAIN GAF CORP AND OTHER LARGE INDUSTRIAL ENTERPRISES WITH LARGE FINANCIAL RESOURCES NONE OF THESE COMPANIES EVER WARNED MR JONES THAT ASBESTOS IS HIGHLY DANGEROUS EVEN THOUGH THERE IS CONSIDERABLE EVIDENCE THAT THEY WERE QUITE AWARE OF THAT FACT BECAUSE MR JONES IS MY NEIGHBOR AND I'M A PLAINTIFF'S TRIAL LAWYER YOU MIGHT THINK THAT ON BEHALF OF MR JONES I'VE TAKEN ARMSTRONG AND THE OTHERS TO COURT BUT MR JONES HASN'T SUED ANYONE AND FOR A VERY SIMPLE REASON HE'S NOT SICK IN FACT HE MAY NEVER GET SICK FROM ASBESTOS EXPOSURE I HOPE HE NEVER DOES OF COURSE IF MR JONES DOES GET SICK FROM ASBESTOS SAY IN 1996 THEN HE CAN SUE ARMSTRONG AND THE OTHERS RIGHT AFTER ALL THESE COMPANIES HAVE PLENTY OF MONEY TO PAY ASBESTOS CLAIMS THAT'S WHAT ARMSTRONG AND THE OTHER SEC REPORTING COMPANIES TELL THEIR INVESTORS ARMSTRONG FOR EXAMPLE STATES IN ITS 1992 ANNUAL REPORT THAT IT RECEIVED ABOUT 29000 NEW ASBESTOS CASES IN 1992 AND THAT AS OF THE END OF 1992 ABOUT 86000 INDIVIDUALS HAD ASBESTOS CLAIMS PENDING AGAINST ARMSTRONG NONETHELESS THE COMPANY BELIEVES THAT THIS LITIGATION WILL NOT HAVE A MATERIAL ADVERSE EFFECT ON ITS EARNINGS LIQUIDITY OR FINANCIAL POSITION TRANSLATED INTO ENGLISH FROM THE ORIGINAL ACCOUNTANTESE THIS MEANS ARMSTRONG THINKS EITHER IT WILL WIN THESE ASBESTOS CASES OR IF IT LOSES IT HAS MORE THAN ENOUGH MONEY TO COMPENSATE THE PLAINTIFFS I'M FAMILIAR WITH ARMSTRONG'S TRACK RECORD IN COURT AND I DOUBT THE COMPANY IS SAYING IT WILL WIN THE CASES BECAUSE IT USUALLY LOSES THIS IS CERTAINLY A RELIEF TO MY NEIGHBOR MR JONES GOD FORBID IT SHOULD HAPPEN BUT IF FIVE YEARS FROM NOW HIS DOCTOR DIAGNOSES HIM WITH ASBESTOSIS OR WORSE YET MESOTHELIOMA A TERMINAL CANCER CAUSED ONLY BY ASBESTOS AT LEAST ARMSTRONG AND THE OTHERS WILL HAVE PLENTY OF MONEY TO PAY HIM OR HIS WIDOW IF PUSH COMES TO SHOVE I CAN FILE A LAWSUIT FOR MR JONES AND A JURY WILL HEAR HIS CASE JUST AS IT SAYS IN THE US CONSTITUTION AND MOST STATE CONSTITUTIONS MAYBE NOT ARMSTRONG GAF CERTAINTEED AND ABOUT 17 OTHER ASBESTOS COMPANIES HAVE GOTTEN TOGETHER AND ASKED A FEDERAL COURT IN PHILADELPHIA TO APPROVE A CLASS ACTION WHICH INCIDENTALLY THEY HAVE ALREADY SETTLED IN FACT THE SAME DAY THIS JANUARY THAT SEVERAL PLAINTIFFS FILED A CLASS ACTION COMPLAINT THOSE PLAINTIFFS AND ARMSTRONG ET AL FILED A SETTLEMENT AGREEMENT AND YET THE EDITORS OF THIS NEWSPAPER COMPLAIN ABOUT THE SLOW PACE OF JUSTICE THE SETTLEMENT AGREEMENT IS LONGER THAN 100 TYPED PAGES BUT I'VE STUDIED IT CAREFULLY TO DETERMINE ITS POSSIBLE EFFECT ON MR JONES AND MY OTHER CLIENTS IT IS AN AMAZING DOCUMENT THE ARMSTRONG SETTLEMENT AGREEMENT CLAIMS TO SETTLE ANY ASBESTOS CLAIM MR JONES MIGHT EVER ASSERT AGAINST ARMSTRONG AND THE OTHERS IN FACT ACCORDING TO THE AGREEMENT MR JONES WILL BE DEEMED TO HAVE GIVEN ARMSTRONG AND THE OTHERS A RELEASE OF ANY CLAIM HE MIGHT HAVE IN THE FUTURE SO FAR THIS SOUNDS PRETTY GOOD BECAUSE AT LEAST IN MY EXPERIENCE RELEASES AND MONEY USUALLY CHANGE HANDS SIMULTANEOUSLY NOT HERE THOUGH MR JONES WILL GET NOTHING FROM ARMSTRONG AND THE OTHERS IN EXCHANGE FOR HIS RELEASE IF MR JONES IN THE FUTURE GETS SICK ENOUGH TO SATISFY THE ELABORATE MEDICAL RULES STATED IN THE PACT HE MAY GET SOMETHING ALTHOUGH HOW MUCH IS STATED ONLY IN BROAD GENERAL RANGES OF DOLLARS SO MR JONES HAS NO WAY TO KNOW HOW MUCH HE MIGHT BE PAID IF ANYTHING AT ALL BOTH BECAUSE THE AGREEMENT DOESN'T SAY EXACTLY AND BECAUSE HE OBVIOUSLY CAN'T KNOW WHAT KIND OF ILLNESS HE MIGHT LATER CONTRACT THE KICKER HOWEVER IS IN THE ELABORATE MEDICAL RULES WHICH ARE STATED IN THE AGREEMENT IN LOVING DETAIL THESE RULES MEAN THAT ARMSTRONG AND THE OTHERS WILL NO LONGER COMPENSATE PLAINTIFFS WHO HAVE CERTAIN TYPES OF ASBESTOS DISEASES WHAT THE AGREEMENT DOESN'T SAY IS THAT ARMSTRONG AND THE OTHERS HAVE ALWAYS BEFORE PAID PLAINTIFFS WITH EXACTLY THOSE DISEASES THAT NOW WILL BE EXCLUDED IN FACT ARMSTRONG AND THE OTHERS IN THE PAST HAVE PAID TENS OF MILLIONS OF DOLLARS TO TENS OF THOUSANDS OF PLAINTIFFS WHO IF THIS AGREEMENT HAD BEEN IN FORCE WOULD HAVE GOTTEN NOTHING FROM THESE COMPANIES WORSE YET EVEN THOSE CITIZENS WHO WILL BE COMPENSATED UNDER THE AGREEMENT ARE SCHEDULED TO RECEIVE LESS MONEY A LOT LESS MONEY THAN THEY WOULD FROM A JURY BUT THIS IS MERELY A PRIVATE SETTLEMENT AGREEMENT AMONG A HANDFUL OF PLAINTIFFS AND SOME ASBESTOS COMPANIES RIGHT WRONG ARMSTRONG AND THE OTHERS ARE ASKING A FEDERAL COURT TO APPROVE THE SETTLEMENT WHICH WOULD MAKE IT BINDING ON EVERYONE IN THE US WHO HAS BEEN EXPOSED TO ASBESTOS AT THE WORKPLACEWHICH IS PROBABLY MORE THAN 30 MILLION CITIZENS INCLUDING MANY READERS OF THIS NEWSPAPER MANY OF THESE CITIZENS WILL NOT EVEN KNOW THEY WERE EXPOSED TO ASBESTOS UNTIL THEIR DOCTORS DIAGNOSE THEM WITH AN ASBESTOSRELATED DISEASE NOR WILL THEY KNOW THAT THEY HAVE RELINQUISHED THEIR RIGHT TO SUE UNTIL IT IS TOO LATE NOW THERE IS A KIND OF COURT THAT CAN APPROVE THIS TYPE OF SETTLEMENT AND THAT IS A BANKRUPTCY COURT ABOUT 12 ASBESTOS COMPANIES HAVE FILED FOR PROTECTION UNDER THE BANKRUPTCY LAWS AND THE BANKRUPTCY COURTS HAVE LIMITED THE LIABILITY OF THOSE COMPANIES TO FUTURE ASBESTOS CLAIMANTS SO THAT EVERYONE GETS A FAIR SHARE OF THE AVAILABLE ASSETS IN BANKRUPTCY ALL A COMPANY'S FINANCIAL RESOURCES ARE ON THE TABLE ARMSTRONG AND THE OTHERS CAN'T FILE FOR BANKRUPTCY BECAUSE AS THEY TELL THEIR INVESTORS THEY HAVE PLENTY OF MONEY TO COMPENSATE ASBESTOS PLAINTIFFS IN THE CLASS ACTION SETTLEMENT HOWEVER THEY ARE SEEKING A BANKRUPTCY RESULT WITHOUT FILING FOR BANKRUPTCY IF THEY WANT TO LIMIT THEIR LIABILITY TO THEIR VICTIMS THEN ALL THEIR FINANCIAL RESOURCES SHOULD BE ON THE TABLE IN A BANKRUPTCY COURT IF THEY'RE NOT BANKRUPT THEN THEY SHOULD PAY WHAT THEY MAY OWE TO MR JONES AND OTHER AMERICANS EXPOSED TO ASBESTOS AFTER ALL THEY'VE TOLD THE SEC THAT THEY CAN EASILY AFFORD TO DO SO MR BARON IS A DALLAS ATTORNEY SEE RELATED LETTER LETTERS TO THE EDITOR OUR ASBESTOS AGENDA FAIRNESS TO ALL MAY 21 1993 9305060047 YY93 MM05 9305210114 930521 BUSINESS BRIEF SOUTHDOWN INC HOLDERS ASK BOARD FOR ROLE IN ANY 'GOLDEN PARACHUTES' SOUTHDOWN INC'S SHAREHOLDERS VOTED TO RECOMMEND THAT THE COMPANY'S BOARD NOT AWARD EMPLOYMENT CONTRACTS WITH GOLDEN PARACHUTE PROVISIONS TO ITS EXECUTIVES WITHOUT OBTAINING SHAREHOLDER APPROVAL HOLDERS WITH A TOTAL OF ABOUT FIVE MILLION SHARES APPROVED THE PROPOSAL BY ABOUT A 41 MARGIN AT THE HOUSTON COMPANY'S ANNUAL MEETING A SPOKESMAN SAID GOLDEN PARACHUTE PROVISIONS OFFER SENIOR EXECUTIVES LUCRATIVE SEVERANCE CONTRACTS WITH PAYMENTS EQUAL TO SEVERAL TIMES THEIR ANNUAL COMPENSATION IN THE EVENT THEIR JOBS ARE TERMINATED AFTER A CHANGE OF CONTROL AT THE COMPANY OFTEN THROUGH A MERGER OR ACQUISITION SOUTHDOWN HAS GRANTED THE SEVERANCE AGREEMENTS TO SEVEN EXECUTIVES THE PROPOSAL'S APPROVAL DOESN'T COMPEL SOUTHDOWN'S BOARD TO SEEK SHAREHOLDERS' APPROVAL BEFORE ENTERING EMPLOYMENT CONTRACTS THAT HAVE GOLDEN PARACHUTE PROVISIONS IT ONLY RECOMMENDS THE BOARD CONSULT HOLDERS THE BOARD SAID IN ITS PROXY STATEMENT THAT THE BOARD WOULD TAKE THE RECOMMENDATION UNDER ADVISEMENT IF THE RESOLUTION PASSED 9305210113 930521 HONDA LOSES APPEAL OF 57 MILLION AWARD FOR ATV ACCIDENT SALEM ORE AP THE OREGON SUPREME COURT UPHELD A 57 MILLION AWARD TO A MAN WHO WAS SERIOUSLY INJURED WHEN HIS THREEWHEELED ALLTERRAIN VEHICLE FLIPPED BACKWARD AS HE RODE UP A HILL BY A 61 RULING THE COURT FOUND HONDA MOTOR CO LIABLE REJECTING THE JAPANESE AUTO MAKER'S CONTENTION THAT US CONSUMER PRODUCT SAFETY COMMISSION DOCUMENTS ON SAFETY CONCERNS ABOUT ATVS SHOULD NOT HAVE BEEN ALLOWED AS EVIDENCE EXCERPTS FROM THE DOCUMENTS TOLD OF OCCURRENCES THAT INDICATED A PATTERN OF LOSS OF CONTROL ASSOCIATED WITH HONDA ATVS THE COMMISSION SAID THE VEHICLES HAD BEEN BLAMED FOR NEARLY 1000 DEATHS AND 300000 INJURIES OVER A FIVEYEAR PERIOD A FEDERAL JUDGE IN 1988 BANNED THE SALE OF THREEWHEELED ATVS UNTIL THEY MET SAFETY STANDARDS KARL OBERG OF SALEM SUFFERED EXTENSIVE FACIAL INJURIES IN A 1985 ACCIDENT AND REQUIRED PLASTIC SURGERY A JURY IN MULTNOMAH COUNTY CIRCUIT COURT WAS ENTITLED TO FIND THAT THE PRIOR OCCURRENCES THAT WERE DESCRIBED IN THOSE EXCERPTS WERE SUFFICIENTLY SIMILAR TO THE ACCIDENT AT ISSUE THE COURT WROTE THE JURY'S AWARD INCLUDED 5 MILLION IN PUNITIVE DAMAGES WHICH ARE MEANT TO PUNISH WRONGDOING AND DETER FUTURE MISCONDUCT THE REMAINDER WAS COMPENSATORY DAMAGES FOR MR OBERG'S INJURIES A SPOKESMAN FOR HONDA'S US UNIT SAID THE COMPANY HAD NO IMMEDIATE COMMENT 9305210112 930521 OUTLOOK FOR NEW YORK REGION IS MIXED OPTIMISM SLIPS IN PHILADELPHIA AREA BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MIDSIZE COMPANIES IN THE GREATER NEW YORK METROPOLITAN REGION HAVE A MIXED ECONOMIC OUTLOOK WHILE MANUFACTURERS IN THE PHILADELPHIA REGION HAVE STARTED TO LOSE MUCH OF THEIR EARLIER OPTIMISM FOR GREATER NEW YORK INCLUDING NEW JERSEY AND CONNECTICUT READINGS WERE MIXED BASED ON A SURVEY OF EXECUTIVES OF MIDSIZE COMPANIES BY NATIONAL WESTMINSTER BANCORP CHIEF EXECUTIVES IN NEW YORK CITY AND CONNECTICUT WERE SLIGHTLY LESS OPTIMISTIC THAN THEY WERE A YEAR AGO WHILE THEIR COUNTERPARTS IN NEW JERSEY SHOWED THE HIGHEST CONFIDENCE LEVEL SINCE THE SURVEY STARTED FIVE YEARS AGO NATWEST SAID OVERALL NATWEST SURVEYED 552 EXECUTIVES IN THE REGION NEW YORK CITY EXECUTIVES REGISTERED A BUSINESS CONFIDENCE INDEX OF 91 A POINT BELOW THE 1992 LEVEL BUT SUBSTANTIALLY HIGHER THAN 51 IN 1991 CONNECTICUT EXECUTIVES HAD AN INDEX LEVEL OF 94 DOWN FROM 96 IN 1992 AND NEW JERSEY EXECUTIVES HAD AN INDEX OF 106 A BIG JUMP FROM THE READING OF 90 IN 1992 THE INDEX USES 1988 AS A BASE YEAR OF 100 THE SURVEY COVERED COMPANIES WITH SALES UNDER 250 MILLION NATWEST SAID IT WAS THE FOURTH CONSECUTIVE YEAR THAT THE INDEX HAS RISEN FOR NEW JERSEY IT STOOD AT 76 IN 1989 82 IN 1990 AND 89 IN 1991 ALL AREAS CHECKED IN RATHER EVENLY ABOUT HOW THEIR BUSINESSES PERFORMED OVER THE PAST YEAR SAID PETER TADFORD NATIONAL WESTMINSTER BANCORP'S CHIEF ECONOMIST WHERE NEW JERSEY CEOS DIFFERED WAS IN THE LEVEL OF OPTIMISM GOING FORWARD CONCERNING THE ECONOMY AND THEIR OWN BUSINESSES MR TADFORD SAID OF THE NEW JERSEY EXECUTIVES SURVEYED 43 SAID THEY HAD A BETTER YEAR IN 1992 THAN THEY DID IN 1991 THE RESPONSE WAS IN LINE WITH REGIONAL AVERAGES NATWEST SAID BUT IN LOOKING AHEAD 74 OF EXECUTIVES THOUGHT BUSINESS WILL IMPROVE THE HIGHEST RESPONSE IN THE TRISTATE AREA NATWEST ALSO NOTED THAT NONE OF THE 118 NEW JERSEY EXECUTIVES INTERVIEWED EXPECT THEIR COMPANIES TO DO WORSE THIS YEAR THAN THEY DID IN 1992 IN ADDITION TO THEIR RELATIVE OPTIMISM ABOUT THEIR OWN BUSINESSES NEW JERSEY EXECUTIVES ALSO WERE MORE UPBEAT ABOUT THEIR LOCAL ECONOMIES SOME 48 EXPECT BETTER ECONOMIC CONDITIONS COMPARED WITH 36 FOR NEW YORK EXECUTIVES AND 32 FOR CONNECTICUT EXECUTIVES AND AN EVEN GREATER DISPARITY SHOWED WHEN EXECUTIVES COMPARED THEIR LOCAL ECONOMIES TO THE NATION'S ECONOMY NEW YORK AND CONNECTICUT EXECUTIVES SAW LOCAL CONDITIONS AS WORSE THAN THE NATION BY 68 AND 61 RESPECTIVELY BUT ONLY 46 IN NEW JERSEY SAW THINGS AS WORSE DESPITE THEIR RELATIVE CONFIDENCE FEWER NEW JERSEY CEOS ARE PLANNING BUSINESS EXPANSIONS 51 COMPARED WITH 57 A YEAR EARLIER AND ONLY 37 ARE RAISING CAPITAL DOWN FROM 42 A YEAR AGO NATWEST SAID FOR NEW YORK THE NUMBER OF EXECUTIVES RATING THE CITY AS A GOOD OR EXCELLENT LOCATION ROSE TO 51 FROM 45 A YEAR EARLIER ALTHOUGH THE LEVEL IS CONSIDERABLY LOWER THAN 77 TWO YEARS AGO ALSO EXECUTIVES REPORTING SUCCESS IN PROSPECTING NEW BUSINESS FELL TO 18 THE REGION'S LOWEST READING FURTHER 62 OF THE EXECUTIVES FEEL THE BUYING BEHAVIOR OF THEIR CUSTOMERS IS MORE CAUTIOUS THIS YEAR CONNECTICUT EXECUTIVES OF MIDSIZE COMPANIES DESPITE THE SLUMPING ECONOMY IN THE STATE INDICATED THE MOST IMPROVEMENT IN BUSINESS OVER THE PAST YEAR 53 SAID THINGS WERE BETTER THAN A YEAR AGO COMPARED WITH 43 IN NEW JERSEY AND 42 IN NEW YORK CITY ALSO 66 SEE BETTER BUSINESS THIS YEAR WHILE ONLY 6 SEE BUSINESS DETERIORATING SEPARATELY THE PHILADELPHIA FEDERAL RESERVE BANK SAID MANUFACTURERS IN ITS REGION WERE STILL INDICATING GROWTH BUT AT A SLOWER PACE ITS SURVEY OF COMPANIES IN EASTERN PENNSYLVANIA SOUTHERN NEW JERSEY AND DELAWARE SHOWED THAT WHILE MOST OF THE ECONOMIC INDICATORS CONTINUE TO HAVE POSITIVE READINGS THE INDICATORS OF CURRENT MANUFACTURING ACTIVITY HAVE BEEN MOVING LOWER IN RECENT MONTHS THE SURVEY'S MAY INDEX OF GENERAL ACTIVITY FELL TO 113 FROM 246 A MONTH EARLIER THE MAY NUMBER ALTHOUGH STILL POSITIVE IS CONSIDERABLY LOWER THAN LEVELS IN JANUARY AND FEBRUARY AND IS THE LOWEST READING SINCE LAST OCTOBER THE REGIONAL FED SAID THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDENTS REPORTING OR PREDICTING INCREASES IN INDICATORS MINUS THE PERCENTAGE CITING DECREASES THE INDEX FOR NEW ORDERS AND SHIPMENTS CONTINUES TO HAVE POSITIVE READINGS ALTHOUGH THE SPREAD BETWEEN COMPANIES REPORTING INCREASES AND THOSE REPORTING DECREASES HAS NARROWED THE FED SAID THE OUTLOOK FOR THE COMING SIX MONTHS ALSO IS GETTING WEAKER FOR THE THIRD CONSECUTIVE MONTH THE INDEX OF EXPECTATIONS DECLINED FOR MAY IT STANDS AT 199 COMPARED WITH 368 IN APRIL MORE THAN HALF OF THE COMPANIES SURVEYED EXPECT NO CHANGE IN EMPLOYMENT IN THE NEAR FUTURE WHILE 16 EXPECT TO ADD JOBS AND 27 EXPECT TO MAKE JOB CUTS 9305210111 930521 ECONOMY SAVINGS FROM TREASURY BORROWINGS WON'T MEET PROJECTIONS OFFICIAL SAYS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FRANK NEWMAN THE TREASURY UNDERSECRETARY WHO OVERSEES FEDERAL BORROWING ACKNOWLEDGED THAT THE TREASURY'S PLAN TO ALTER THE GOVERNMENT'S BORROWING MIX WON'T SAVE AS MUCH MONEY AS PRESIDENT CLINTON'S BUDGET PROJECTED THE PRESIDENT'S BUDGET AND THE SUBSEQUENT BUDGET OUTLINE APPROVED BY CONGRESS ASSUME THAT RELYING MORE ON SHORTERTERM BORROWINGS WILL SAVE TAXPAYERS 161 BILLION OVER THE NEXT FIVE YEARS BASED ON THE INTERESTRATE ASSUMPTIONS THAT UNDERLIE THE BUDGET IT WON'T MR NEWMAN SAID IN AN INTERVIEW IT'S PRETTY EVIDENT THAT THE AMOUNT OF SAVINGS UNDER THAT PARTICULAR INTERESTRATE ASSUMPTION IS GOING TO BE LESS ANALYSTS OUTSIDE THE TREASURY HAD COME TO THAT CONCLUSION BUT THE TREASURY HADN'T COMMENTED ECHOING COMMENTS BY TREASURY SECRETARY LLOYD BENTSEN MR NEWMAN EMPHASIZED THAT THE TREASURY'S PRIMARY OBJECTIVE ISN'T FINDING A WAY TO SAVE 161 BILLION UNDER THE ADMINISTRATION'S INTERESTRATE FORECAST RATHER HE SAID THE OBJECTIVE IS FINDING A MIX OF SHORTTERM AND LONGTERM DEBT THAT PROMISES THE LOWEST COST UNDER A VARIETY OF INTERESTRATE AND ECONOMIC SCENARIOS THE TREASURY'S MOVE SHOULD SAVE MONEY PROVIDED SHORTTERM RATES REMAIN LOWER THAN LONGTERM RATES AS THEY HAVE FOR DECADES EARLIER THIS MONTH THE TREASURY SAID IT WOULD STOP ISSUING SEVENYEAR BONDS AND REDUCE BY ABOUT 45 ITS ANNUAL OFFERINGS OF 30YEAR BONDS IT PLANS TO BORROW MORE AT MATURITIES OF THREE YEARS OR LESS TO SAVE 161 BILLION THE SENATE BUDGET COMMITTEE STAFF HAS ESTIMATED THAT THE TREASURY WOULD HAVE HAD TO REDUCE ITS OFFERINGS OF 30YEAR BONDS BY 50 ELIMINATE THE SEVENYEAR NOTE AND TRIM ITS OFFERING OF FIVEYEAR NOTES BY 20 MR NEWMAN WOULDN'T SAY HOW MUCH THE ADMINISTRATION EXPECTS TO SAVE FROM THE CHANGE IT ANNOUNCED THIS MONTH THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT THE TREASURY MOVE WILL SAVE ABOUT 64 BILLION IN INTEREST COSTS OVER THE NEXT FIVE YEARS USING A DIFFERENT STARTING POINT THE WHITE HOUSE BUDGET OFFICE SAYS THE SAVINGS WILL EXCEED 10 BILLION THE TREASURY'S DECISION TO REDUCE ITS LONGTERM BORROWING HAS BEEN CONTROVERSIAL MR NEWMAN'S PREDECESSOR JEROME POWELL CRITICIZED IT ON THE EDIT PAGE OF THE WALL STREET JOURNAL YESTERDAY SAYING IT WAS TOO RISKY AND WARNING THAT THE TREASURY MIGHT BE TEMPTED TO ALTER THE BORROWING MIX REPEATEDLY TO TRY TO SAVE MONEY MR NEWMAN DENIED THAT INSISTING THIS IS A ONETIME SHIFT IN TREASURY BORROWING POLICY IT'S CLEARLY NOT AT ALL THE INTENT OF THIS TREASURY SECRETARY BENTSEN AND THE ADMINISTRATION TO BE MANIPULATING THE TREASURY BORROWING PATTERN EACH YEAR FOR BUDGETARY PURPOSES HE SAID THE TREASURY'S MOVE TO RELY LESS ON LONGTERM DEBT COMES AS MANY COMPANIES ARE MOVING IN JUST THE OPPOSITE DIRECTION LOCKING IN ATTRACTIVE LONGTERM RATES THAT MAKES SENSE FOR COMPANIES WHICH CAN'T BE ABSOLUTELY CERTAIN THAT THEY WILL HAVE ACCESS TO CREDIT MARKETS AT ALL TIMES A LOT OF THESE THINGS DON'T APPLY TO THE US GOVERNMENT HE SAID CREDIT RATING IS NOT AN ISSUE LIQUIDITY IS NOT AN ISSUE MR NEWMAN SAID THAT BY BORROWING LESS AT LONGER MATURITIES THE TREASURY WASN'T TRYING TO REDUCE MARKET LONGTERM INTEREST RATES FROM WHERE THEY WOULD OTHERWISE BE BUT IF THAT HAPPENS HE SAID IT WOULDN'T BREAK MY HEART 9305210110 930521 WHO'S NEWS GAMMON FORMER LEADER IN MUNICIPALS TO QUIT LOEWS/CNA JOIN FUND GROUP BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JAMES L GAMMON ONCE ONE OF THE MOST POWERFUL INVESTORS IN THE 12 TRILLION MUNICIPAL BOND BUSINESS WILL LEAVE HIS POST AS SENIOR VICE PRESIDENT AND SENIOR PORTFOLIO MANAGER AT LOEWS/CNA HOLDINGS INC A UNIT OF LOEWS CORP MR GAMMON 51 YEARS OLD SAID IN AN INTERVIEW HE WILL BE JOINING A MUTUAL FUND GROUP BUT DECLINED TO ELABORATE HE SAID HE WILL REMAIN AT LOEWS UNTIL JUNE 25 ASKED WHY HE IS LEAVING LOEWS WHERE HE HAS WORKED SINCE MARCH 1984 MR GAMMON REPLIED I JUST LITERALLY CANNOT COMMENT MR GAMMON'S SUCCESSOR WILL BE LISA W HESS A SENIOR VICE PRESIDENT OF LOEWS/CNA HOLDINGS MS HESS WILL ALSO CONTINUE TO MANAGE MORTGAGEBACKED AND ASSETBACKED SECURITIES FOR CNA FRIENDS SPECULATE MR GAMMON MAY BE LEAVING FOR A NEW POST WHERE HE COULD BE AS INFLUENTIAL A TRADER AS HE ONCE WAS MR GAMMON ONCE MANAGED AS MUCH AS 12 BILLION IN MUNICIPAL BONDS FOR CNA FINANCIAL CORP WHICH IS ABOUT 81OWNED BY LOEWS NOW THAT PORTFOLIO IS ONLY ABOUT HALF THAT SIZE TOTALING ABOUT 65 BILLION AS CNA AND NUMEROUS OTHER PROPERTY AND CASUALTY INSURANCE COMPANIES HAVE PLACED FAR MORE EMPHASIS ON TAXABLE BONDS AND ON SHORTERTERM SECURITIES AS OF THE END OF LAST YEAR PROPERTY AND CASUALTY INSURERS HELD ONLY ABOUT 12 OF ALL MUNICIPAL SECURITIES HELD BY THE PUBLIC DOWN FROM 22 IN 1980 ACCORDING TO THE PUBLIC SECURITIES ASSOCIATION A TRADE ASSOCIATION MR GAMMON HAS BEEN A HUGE SELLER OF MUNICIPAL BONDS THIS YEAR HE SAID YESTERDAY THAT HE HAS SOLD ABOUT 5 BILLION OF TAXFREE BONDS SINCE THE END OF LAST YEAR THE FEW THINGS WE HAVE BOUGHT MATURE IN THREE TO FIVE YEARS AND WE'RE NOT BUYING IN ANY SIZE ANYMORE HE SAID THIS REDUCTION STEMS FROM CHANGES IN LOEWS'S TAX AND ACCOUNTING SITUATIONS AS WELL AS THE CORPORATION'S CURRENT VERY CONSERVATIVE INVESTMENT POSTURE MR GAMMON SAID THAT CONSERVATIVE POSTURE HE EXPLAINED MEANS LOEWS' SENIOR MANAGEMENT IS CONCERNED ABOUT INTEREST RATES AND THUS IS SHUNNING LONGTERM BONDS IN ADDITION AS PREVIOUSLY REPORTED LOEWS NEEDED TO RAISE LARGE AMOUNTS OF CASH TO COVER ASBESTOS LIABILITY CLAIMS AGAINST A CNA SUBSIDIARY IN HIS HEYDAY DURING THE 1980S MR GAMMON WAS ONE OF WALL STREET'S MOST SOUGHTAFTER CUSTOMERS BECAUSE HE DID SO MUCH TRADING UNLIKE MANY MUNICIPALBOND INVESTORS WHO BUY BONDS AND THEN HOLD THEM UNTIL MATURITY MR GAMMON WAS FOND OF TRADING POSITIONS ACTIVELY AND IN ENORMOUS BLOCKS EVEN TODAY SEVERAL SALESMAN ON WALL STREET SAY THEY FEEL A CLOSER BOND TO MR GAMMON THAN TO THEIR OWN EMPLOYERS BECAUSE MR GAMMON COULD NOT ONLY MAKE THEM RICH BUT ALSO COULD PROVIDE THEM WITH A MEASURE OF JOB SECURITY HE IS MY BIGGEST AND BEST ACCOUNT SAID A SALESMAN AT ONE OF WALL STREET'S BIGGEST FIRMS TRADERS SAY MR GAMMON IS VERY OUTSPOKEN HIGHLY DEMANDING BUT ALSO VERY GENEROUS AND A MASTER AT STROKING MUNICIPALBOND ANALYSTS FOR EXAMPLE HE WOULD FREQUENTLY PRESENT THE ORDER OF THE EAGLE STEUBEN GLASS EAGLES AS REWARDS TO INDIVIDUALS WHO GAVE HIM THE BEST IDEAS AND TIPS ABOUT MUNICIPAL BONDS ADMIRERS SAY MR GAMMON LONG HAS PRODUCED SPARKLING INVESTMENT RETURNS SINCE HE JOINED LOEWS IN MARCH 1984 ASKED ABOUT THIS MR GAMMON REPLIED THAT OVER THE FIVE YEARS ENDED DEC 31 1992 OUR TOTAL RETURN WAS 675 THAT COMPARES TO A RETURN OF 5729 FOR GENERALPURPOSE MUNICIPAL BOND FUNDS DURING THAT SAME PERIOD ACCORDING TO LIPPER ANALYTICAL SERVICES INC FOR THE 10 YEARS ENDED DEC 31 1992 MR GAMMON SAID HIS TOTAL RETURN WAS ABOUT 280 COMPARED WITH ABOUT 173 FOR THE 38 FUNDS IN EXISTENCE FOR THAT SAME PERIOD HE IS ONE OF THE MOST RESPECTED PORTFOLIO MANAGERS IN THE INDUSTRY SAID RICHARD CICCARONE SENIOR VICE PRESIDENT AND DIRECTOR OF TAXEXEMPT FIXEDINCOME RESEARCH AT KEMPER SECURITIES INC IN CHICAGO MR GAMMON'S EXPECTED DEPARTURE WHICH HAD BEEN RUMORED IN THE MUNICIPALBOND BUSINESS WAS REPORTED YESTERDAY IN THE BOND BUYER A TRADE PUBLICATION 9305210109 930521 CREDIT RATINGS FMC CORP CHICAGO MOODY'S INVESTORS SERVICE INC RAISED THE RATINGS ON ABOUT 635 MILLION IN LONGTERM DEBT ISSUED BY THIS MAKER OF MACHINERY AND CHEMICALS CITING THE DIVERSITY OF FMC'S OPERATIONS AND ITS CAPACITY TO GENERATE EXCESS CASH THE MOVE ALSO REFLECT FMC'S RECORD IN REDUCING DEBT AND STRENGTHENING ITS CAPITAL STRUCTURE MOODY'S SAID THE AGENCY RAISED FMC'S SENIOR DEBT RATING TO BAA3 FROM BA1 AND THE SUBORDINATED DEBT RATING TO BA2 FROM BA3 IT ALSO WITHDREW THE NOT PRIME' RATING ASSIGNED TO THE COMPANY'S SHORTTERM DEBT SINCE 1986 FMC HAS SIGNIFICANTLY REDUCED DEBT MOODY'S SAID IT EXPECTS DEBTPROTECTION MEASUREMENTS MAY STABILIZE AS MANAGEMENT FOCUSES ON EXPANDING THE COMPANY THROUGH INCREASED RESEARCH AND DEVELOPMENT CAPITAL EXPENDITURES AND MODERATESIZE ACQUISITIONS IN ADDITION FMC'S DIVERSE PORTFOLIO OF COMPANIES HAS PRODUCED STABLE EARNINGS AND CASH FLOW IN RECENT YEARS 9305210108 930521 VESTAR DRUG GETS ORPHAN STATUS SAN DIMAS CALIF VESTAR INC SAID THE FOOD AND DRUG ADMINISTRATION GRANTED ORPHAN DRUG STATUS TO VESTAR'S DAUNOXOME DRUG FOR TREATMENT OF KAPOSI'S SARCOMA A FORM OF CANCER THAT AFFLICTS AIDS PATIENTS VESTAR A PHARMACEUTICAL CONCERN CALLED THE FDA ACTION AN IMPORTANT MILESTONE FOR THIS COMPANY THE COMPANY'S APPLICATION TO MARKET THE DRUG WAS FILED WITH THE FDA IN FEBRUARY ORPHAN DRUG STATUS GIVES A NEW DRUG SEVEN YEARS OF MARKETING EXCLUSIVITY FOLLOWING FDA APPROVAL THE ORPHAN DRUG ACT WAS PASSED IN 1983 TO ENCOURAGE DEVELOPMENT OF DRUGS FOR CONDITIONS THAT AFFECT FEWER THAN 200000 PEOPLE IN THE US 9305210107 930521 STEINHARDT STUMBLES ON SHORT STOCK SALES BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MICHAEL STEINHARDT THE FAMED TRADER WHO RUNS 325 BILLION IN HEDGE FUNDS HAS SCORED HUGE RETURNS WITH BULLISH BOND MARKET BETS BUT HIS STOCK PLAYS ARE ANOTHER MATTER IN THE PAST SIX WEEKS TRADERS SAY MR STEINHARDT HAS BOUGHT BACK ROUGHLY 250 MILLION WORTH OF STOCKS HE HAD SOLD SHORT BETTING INCORRECTLY AS IT TURNED OUT THAT THEIR PRICES WOULD DECLINE BEFORE THE STOCK MARKET BEGAN TO RALLY IN OCTOBER FORMER EMPLOYEES ESTIMATE THAT MR STEINHARDT HAD SHORT POSITIONS TOPPING 1 BILLION TRADERS SAY THE STEINHARDT FUNDS' RECENT BUYING HELPED PUSH UP PRICES OF OVERTHECOUNTER TECHNOLOGY STOCKS INCLUDING ADOBE SYSTEMS INC BRODERBUND SOFTWARE INC AND CISCO SYSTEMS INC ALL THREE REACHED RECENT LOWS IN APRIL SINCE THEN THE PRICE OF ADOBE STOCK HAS RISEN 72 AND BRODERBUND AND CISCO ARE BOTH UP 32 SUCH SHORTCOVERING TRADERS SAY HAS BEEN ONE FACTOR IN THIS WEEK'S SURPRISINGLY STRONG STOCK MARKET RALLY WHICH SENT THE DOW JONES INDUSTRIAL AVERAGE SOARING TO RECORDS TWO DAYS IN A ROW IN A SHORT SALE A TRADER SELLS BORROWED SHARES BETTING THEY WILL DECLINE IN PRICE AND THAT SHARES CAN BE BOUGHT LATER COVERING THE SHORT SALE AT A CHEAPER PRICE FOR RETURN TO THE LENDER MR STEINHARDT'S VOCAL DISSATISFACTION WITH HIS STOCK RESULTS HAS CONTRIBUTED TO AN EXODUS OF A HALF DOZEN OF HIS FIRM'S STOCK ANALYSTS A JUNIOR TRADER SEVERAL ASSISTANTS AND A WEEK AGO HERBERT CHEN THE SECOND HEAD OF STOCK RESEARCH TO LEAVE MR STEINHARDT IN THE PAST SIX MONTHS MR STEINHARDT HAS ABOUT 60 EMPLOYEES MR STEINHARDT THOUGH USUALLY EXTREMELY SOFTSPOKEN IS PRONE TO OCCASIONAL SUDDEN OUTBURSTS OF EXTREME ANGER MARKED BY SHOUTING AND SCATHING COMMENTS TOWARD EMPLOYEES WHOSE TRADING IDEAS AREN'T SHOWING A PROFIT FREQUENT DEPARTURES BY EMPLOYEES ARE ROUTINE JOSEPH S DIMARTINO PRESIDENT OF DREYFUS CORP SAYS PEOPLE WHO HAVE WORKED FOR MR STEINHARDT KNOW THE DEGREE OF DIFFICULTY IN WORKING IN THE OPERATION HIS SON JOSEPH JR CURRENTLY WORKS FOR MR STEINHARDT THE ELDER MR DIMARTINO EXPLAINS MICHAEL IS AN UNUSUAL TALENT HE IS SO DEMANDING OF HIMSELF SO CRITICAL OF WHAT HE DOES AND HIS STANDARDS ARE SO HIGH IN TERMS OF INVESTMENTS THAT SOMETIMES WHEN HE IMPOSES THOSE SAME STANDARDS ON OTHER PEOPLE THEY CAN'T CARRY IT IT BREAKS THEM MR STEINHARDT DECLINED TO COMMENT HIS PERSONAL STYLE ASIDE HIS LONGTERM INVESTMENT RESULTS ARE LEGENDARY ON WALL STREET WITH RETURNS TO INVESTORS AFTER FEES AVERAGING MORE THAN 26 ANNUALLY MOST OF THE PROFITS IN HIS 25YEAR RECORD HAVE BEEN MADE IN THE STOCK MARKET FOR THE YEAR ENDED JAN 31 1993 MR STEINHARDT'S ACCOUNTS RETURNED 536 TO INVESTORS ACCORDING TO THE US OFFSHORE FUNDS DIRECTORY THAT WAS MAINLY DUE TO MR STEINHARDT'S BOND MARKET BETS TRADERS SAY AS WELL AS THE ACQUISITION OF SUNBEAMOSTER CO IN JANUARY MR STEINHARDT ACCEPTED AN ADDITIONAL 500 MILLION TO MANAGE ONE STEINHARDT ALUMNUS SAYS THAT SINCE MID1990 MR STEINHARDT HAS BELIEVED THE US ECONOMY WAS WEAKER THAN GENERALLY UNDERSTOOD HE THEREFORE BOUGHT A HUGE BOND POSITION PREDICTING CORRECTLY THAT INTEREST RATES WOULD COME DOWN AND SOLD STOCKS SHORT BELIEVING THEY WOULD DECLINE IN PRICE THE SAME ALUMNUS SAID MR STEINHARDT RECENTLY SOLD MUCH OF HIS BOND HOLDINGS ON THE BELIEF THAT THE THREEYEAR BOND RALLY MAY HAVE LARGELY RUN ITS COURSE BUT THAT REDUCED HIS CONFIDENCE IN SELLING STOCKS SHORT LEADING HIM TO PARE BACK HIS SHORT POSITIONS AS WELL MR CHEN 32 YEARS OLD WAS A PARTNER IN MR STEINHARDT'S FIRM WHERE HE HAD WORKED SINCE 1987 A RELATIVELY LONG TIME COMPARED WITH MANY OTHER EMPLOYEES HE RESIGNED WITHIN THE PAST WEEK AND IS UNDERSTOOD TO BE PLANNING TO MANAGE A HEDGE FUND OF HIS OWN OTHERS LEAVING IN THE PAST WEEK INCLUDE CYNTHIA HOUX A HEALTHCARE ANALYST AND ROY HOWARD A JUNIOR TRADER OTHERS WHO HAVE LEFT THE STEINHARDT OPERATION DURING THE PAST SEVERAL MONTHS INCLUDE JOHN KELLENYI WHO LEFT AS HEAD OF RESEARCH IN NOVEMBER AND ANALYSTS KATHLEEN LALLY JAY MCCABE AND MICHAEL ROSEN MR STEINHARDT'S EMPLOYEES HAVE A FATALISTIC BLACKHUMOR APPRECIATION FOR THE HIGH TURNOVER IN THEIR RANKS ONE ALUMNUS SAID EMPLOYEES THERE MAKE A GAME OF TRADING MAKEBELIEVE OPTIONS ON INDIVIDUAL EMPLOYEES IF AN ANALYST'S STOCK POSITIONS AREN'T DOING WELL HIS PUTS WILL GO UP IN PRICE A PUT OPTION IS A BET THAT A GIVEN STOCK PRICE WILL FALL NO ONE DISPUTES THAT THIS IS A HIGHPRESSURE PLACE WHERE EXCELLENCE IS DEMANDED SAID ONE STEINHARDT EMPLOYEE PEOPLE WHO COME HERE CAN MAKE A GREAT DEAL OF MONEY AND FOR THAT THERE IS A PERFORMANCE LEVEL EXPECTED IT'S NOT LIKE WORKING AT THE POST OFFICE 9305210106 930521 FINANCING BUSINESS COUNTRYWIDE MORTGAGE INVESTMENTS INC COUNTRYWIDE MORTGAGE INVESTMENTS INC PASADENA CALIF SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER NINE MILLION COMMON SHARES ASSUMING ALL THE NEW SHARES ARE SOLD COUNTRYWIDE MORTGAGE'S SHARES OUTSTANDING WOULD JUMP 64 TO ABOUT 23 MILLION FROM 14 MILLION A COMPANY SPOKESWOMAN SAID SOME INVESTORS PROBABLY ANTICIPATED THE OFFERING AFTER THE REAL ESTATE INVESTMENT TRUST RECENTLY ANNOUNCED PLANS TO FORM A NEW SUBSIDIARY ROUGHLY 95 OF THE TRUST'S SHARES ARE HELD BY INDIVIDUALS WHO DON'T TRADE AS READILY AS INSTITUTIONAL INVESTORS SHE SAID THE NEW SUBSIDIARY WAS FORMED TO ACT AS AN INTERMEDIARY BETWEEN ORIGINATORS OF JUMBO LOANS AND PERMANENT INVESTORS IN SUCH SECURITIES THE TRUST IS MANAGED BY COUNTRYWIDE ASSET MANAGEMENT CO A UNIT OF COUNTRYWIDE CREDIT INDUSTRIES INC A RESIDENTIAL MORTGAGE LENDER 9305210105 930521 ECONOMY CLINTON FOLLOWS PREDECESSORS' PATH IN WRESTLING WITH THE DEMON DEFICIT BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HECKLER AT A LOS ANGELES COMMUNITY COLLEGE TUESDAY SHOUTED THIS CHALLENGE TO PRESIDENT CLINTON NO NEW TAXES IN RESPONSE MR CLINTON GAVE WHAT HAS BECOME HIS STANDARD DEFENSE WE TRIED IT YOUR WAY FOR 12 YEARS HE SAID AND LOOK WHAT IT GOT US EVERY CHANCE HE HAS GOTTEN RECENTLY THE PRESIDENT HAS BOOSTED HIS OWN DEFICITREDUCTION PACKAGE BY DISPARAGING THE FISCAL RECORD OF HIS PREDECESSORS IMPLYING THAT PRESIDENTS BUSH AND REAGAN MERELY CUT TAXES AND DIDN'T DO MUCH TO LOWER SPENDING IN FACT THE ADMINISTRATIONS OF BOTH PREVIOUS PRESIDENTS WERE PUNCTUATED BY OFTEN MASSIVE EFFORTS TO REDUCE THE DEFICIT THROUGH TAX INCREASES AND SPENDING CUTS INDEED MR CLINTON NEVER TIRED OF USING THE 1990 TAX INCREASE AS A CAMPAIGN WEAPON CONSTANTLY CHIDING MR BUSH FOR BREAKING HIS NONEWTAXES PLEDGE TO BE SURE THE GOVERNMENT'S DEFICIT MESS WAS CAUSED LARGELY BY A SLASH IN FEDERAL INCOMETAX RATES IN 1981 AND A JUMP IN MILITARY SPENDING THAT BEGAN THAT YEAR AT THE URGING OF PRESIDENT REAGAN AND MR REAGAN AND MR BUSH WERE RELUCTANT TO EMBRACE DEFICITCUTTING MEASURES ESPECIALLY WHEN THEY INVOLVED TAX INCREASES WHAT'S MORE THE ANNUAL DEFICIT REMAINED HIGH THROUGHOUT THE DECADE DESPITE EFFORTS TO TRIM IT LARGELY BECAUSE OF SOME YEARS OF RECESSION AND CONTINUING INCREASES IN AUTOMATIC SPENDING PROGRAMS AFTER REACHING 2212 BILLION IN FISCAL 1986 THE DEFICIT DECLINED TO 1498 BILLION THE NEXT YEAR ONLY TO RISE AGAIN TO A HIGH OF 2902 BILLION IN FISCAL 1992 WHICH ENDED SEPT 30 BUT DEFICITREDUCTION LEGISLATION ISN'T NEW WITH THE CURRENT ADMINISTRATION TO THE CONTRARY THE PASSAGE OF MAJOR AND POLITICALLY WRENCHING TAXINCREASE AND SPENDINGREDUCTION BILLS BECAME SOMETHING OF AN AUTUMN RITUAL ON CAPITOL HILL THROUGHOUT MUCH OF THE 1980S EXPERTS AGREE THAT THE DEFICIT WOULD BE MANY BILLIONS OF DOLLARS HIGHER NOW WERE IT NOT FOR SUCH BILLS MOREOVER CONGRESS HASN'T PASSED TAXCUT LEGISLATION SINCE 1981 NONETHELESS THIS YEAR MR CLINTON HAS BEEN WORKING HARD TO CHARACTERIZE THE REAGANBUSH YEARS AS A PERIOD OF INACTION ON THE DEFICIT IN EFFECT HE HAS TRIED TO DEFINE THE ENTIRE PERIOD BY THE DEFICITWIDENING BILLS OF 1981 WITNESS ON MONDAY IN SAN DIEGO THE PRESIDENT SAID THE COUNTRY WENT IN ONE DIRECTION FOR 12 YEARS AND IT WAS A POPULAR DIRECTION THE MOST POPULAR THING IN THE WORLD TO DO IF YOU'RE IN PUBLIC LIFE IS TO CUT PEOPLE'S TAXES AND SPEND MORE MONEY AND IN NEW YORK EARLIER THIS MONTH HE SAID THE MOST POPULAR THING IN THE WORLD IS FOR ME TO CUT YOUR TAX AND WRITE YOU A CHECK AND THAT WAS WHAT WAS DONE BY GOVERNMENT FOR THE AMERICAN PEOPLE FOR 12 LONG YEARS VICE PRESIDENT GORE HAS GOTTEN INTO THE ACT SPEAKING OF THE PRESIDENT'S ECONOMIC PACKAGE TUESDAY HE SAID AFTER 12 YEARS OF INACTION AFTER 12 YEARS OF DELAY AFTER 12 YEARS OF CLARION CALLS TO DO THE EASY THINGS NOW IT IS TIME FOR OUR NATION TO PULL TOGETHER AND DO SOME DIFFICULT THINGS AS A NATION SO THAT WE CAN RECLAIM OUR FUTURE FEW DOUBT THAT 1981 LEGISLATION PRODUCED A TORRENT OF RED INK ACCORDING TO THE CONGRESSIONAL BUDGET OFFICE BILLS ENACTED THAT YEAR INCREASED THE DEFICIT BY 560 BILLION OVER FIVE YEARS BUT THERE HAS BEEN SIZABLE DEFICITCUTTING IN SEVERAL YEARS SINCE THEN OFTEN AFTER EXTREMELY DIFFICULT AND LENGTHY NEGOTIATIONS ACCORDING TO THE CBO'S FIVEYEAR ESTIMATES MEASURES ENACTED IN 1982 CUT THE DEFICIT BY 184 BILLION THOSE ENACTED IN 1984 CUT IT BY 155 BILLION AND THOSE ENACTED IN 1987 REDUCED IT BY 226 BILLION THE BIGGEST DEFICITREDUCTION PACKAGE OF ALL UNTIL POTENTIALLY THIS YEAR WAS THE 1990 BILL SIGNED BY MR BUSH 482 BILLION OVER FIVE YEARS ACCORDING TO THE CBO THAT IS LARGER THAN THE 473 BILLION THAT THE WHITE HOUSE ITSELF ESTIMATED ITS ORIGINAL PROPOSAL THIS YEAR WOULD REDUCE THE AMOUNT OF DEFICIT REDUCTION OVER FIVE YEARS WHITE HOUSE AIDES ARE QUICK TO NOTE THAT MR BUSH WAS FORCED TO ACCEPT THE 1990 MEASURE AND EVEN REPUDIATED IT DURING THE 1992 CAMPAIGN IN ADDITION MR CLINTON NOW SUPPORTS THE CONGRESSIONAL BUDGET RESOLUTION THAT RIVALS AND PERHAPS EXCEEDS THE 1990 BILL IN TERMS OF DEFICITCUTTING THE LARGER POINT IS HE MR CLINTON HAS TAKEN ON A LOT OF SACRED COWS MEDICARE SOCIAL SECURITY PROPOSED REAL ENTITLEMENT CUTS IN WAYS THAT HAVEN'T BEEN DONE OVER THE LAST DECADE SAID GEORGE STEPHANOPOULOS THE WHITE HOUSE COMMUNICATIONS DIRECTOR THIS IS A DEPARTURE FROM THE 1980S HE'S GETTING IT DONE HE'S TAKING IT ON DON'T UNDERESTIMATE THE IMPORTANCE OF THAT STILL GIVEN THE MANY DEFICITCUTTING BILLS THAT GOP PRESIDENTS SIGNED OVER THE PAST DECADE MR CLINTON'S COMMENTS ARE MISLEADING AT LEAST A LITTLE BIT CONCLUDED STANLEY COLLANDER A BUDGET EXPERT AT THE ACCOUNTING FIRM PRICE WATERHOUSE CO ADDED CAROL COX WAIT OF THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET A PRIVATE WATCHDOG GROUP DID WE DO ENOUGH HELL NO BUT IT'S ALMOST SPECIOUS TO SUGGEST WE HAVEN'T DONE ANYTHING AT ALL WE HAVE DONE A DEFICITREDUCTION BILL ALMOST EVERY YEAR SINCE 1982 9305210104 930521 LETTERS TO THE EDITOR I HOPE I'LL NEVER SEE LAST OF THE VIRGIN TREES DURING THE MAKING OF THE LAST OF THE MOHICANS I SPENT MANY MONTHS IN OLDGROWTH FOREST IT WAS FOR ME RAISED IN CHICAGO AND OTHER URBAN PLACES AN AWAKENING TO THE SCANDALOUS TIMBERING POLICIES THAT HAVE REDUCED OLDGROWTH FOREST IN STATES LIKE NORTH CAROLINA TO A FEW DOZEN SQUARE MILES AND THREATEN THOSE SMALL REMAINS THERE AND ELSEWHERE JOHN HOOD'S MARCH 30 EDITORIAL PAGE ARTICLE ABOUT MOHICANS STATES THAT WE SITED FORT WILLIAM HENRY WHERE WE DID BECAUSE IT WAS AN ACCURATE DEPICTION OF VIRGIN FORESTS THE CONTRARY IS THE CASE WE SITED IT WHERE WE DID BECAUSE NO ONE INCLUDING MYSELF HAD OBJECTIONS TO PURCHASING AND CUTTING DOWN THE 40 ACRES OF 17YEAROLD FIFTHGENERATION JUNK GROWTH ON THE CRESCENT RESOURCES' LAKE JAMES PROPERTY THE VISTAS AROUND LAKE JAMES ARE STARTLING AND FRONTIERLIKE ONLY BECAUSE THE TREES ARE FAR AWAY AND PHOTOGRAPHY AND GREAT SKIES MAKE IT LOOK LIKE FRONTIER IT IS NOT LIKE FRONTIER OR OLD GROWTH IT IS A TREE PLANTATION THE FEW PATCHES OF OLD GROWTH REMAINING IN NORTH CAROLINA SUCH AS THE 500YEAROLD HARDWOOD GROVES IN LINVILLE FALLS AND BIG IVY/COLEMAN BOUNDARY WERE USED AND IMPRINTED UPON AUDIENCE IMAGINATION EARLY IN THE PICTURE SO THAT THEY WOULD IMPUTE THAT DETAILED FEELING OF FOREST TO THE PANORAMIC SHOTS AROUND THE FORT THE EXPERIENCE UNDER A TOWERING CANOPY OF 300 TO 500YEAROLD HARDWOODS THE SENSE ONE IS IN A CATHEDRALLIKE BIOSYSTEM IS SO SPECTACULAR COMPLEX AND CATEGORICALLY DIFFERENT FROM THE SCRUB UNDERGROWTH AND SOFT PINE OF A REPLANTED SITE THAT I AM AMAZED ANYBODY WOULD EQUATE THE TWO WHAT FOLLOWS CLEARCUTTING IS TREEFARMING THE FOREST SYSTEM IS LOST FOREVER FURTHER THE NOTION THAT ONE TRUST THE REMAINING TREASURE OF OLD GROWTH TO THOSE ENVIRONMENTALLY CONSCIOUS PLAYERS THE PRIVATE PAPER AND LUMBER COMPANIES IS ABSURD THAT NOTION IS EITHER THE DECEPTIVE PITCH OF PAID LOBBYISTS OR IF THE NOTION IS SINCERE IT IS THE FANTASY OF DANGEROUS POLLYANNAS IN SOME ULTRACONSERVATIVE THINK TANK THE CLEARCUTTING OF OLDGROWTH FOREST MUST STOP REMAINING OLD FORESTS ESTIMATED AT 001 OF THE TOTAL SHOULD BE LEFT INTACT BECAUSE ONCE CUT THEY ARE RUINED FOREVER AND WE DON'T NEED SPOTTED OWL EXCUSES TO PROTECT OLD FOREST SYSTEMS IT IS A LEGACY FOR OUR CHILDREN AND THEIR CHILDREN'S CHILDREN AND ONLY SELFISH AND MENDACIOUS PEOPLE WOULD STEAL THAT FROM OUR PROGENY TO MAKE A QUICK BUCK TODAY IF RESTRICTING LUMBERING TO PREVIOUSLY CLEARCUT TRACTS CUTS INTO PROFITS THAT'S TOO BAD AS AN INDUSTRY IT HAS ALREADY DERIVED ENOUGH PROFITS FROM LAND DEEDED TO THE PUBLIC TRUST TO CUSHION THE HIT TO ITS PROFIT AND LOSS COLUMNS THE JOBS LOSS ISSUE RAISED BY FOREST PRODUCT COMPANIES IS REAL FOR THE WORKERS AND A SHAM WHEN USED BY THE COMPANIES THE LABOR HISTORY OF FOREST PRODUCT COMPANIES BEARS AMPLE WITNESS THAT THEY COULDN'T CARE LESS ABOUT THEIR WORKERS WHILE I AM GRATEFUL FOR THE APPRECIATION MR HOOD HAS OF MOHICANS I TAKE EXTREME UMBRAGE AT THE MISUSE OF MY MOTION PICTURE AS EVIDENCE IN A PROCLEARCUTTING ARGUMENT I COULD NOT BE MORE TOTALLY OPPOSED TO EVERYTHING MR HOOD AND HIS GROUP STAND FOR 9305210103 930521 TEXAS SENATE CAMPAIGN OFFERS PREVIEW OF UNFOLDING HEALTHREFORM DEBATES BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN TEXAS JUST WEEKS BEFORE PRESIDENT CLINTON UNVEILS HIS HEALTH REFORM PLAN DEMOCRATS ARE TRYING TO STAGE AN EARLY DEBATE ON THE ISSUE HERE IN TEXAS THE SETTING IS THE CAMPAIGN TO FILL THE US SENATE SEAT VACATED BY LLOYD BENTSEN WHEN HE BECAME PRESIDENT CLINTON'S TREASURY SECRETARY IN RECENT DAYS DEMOCRAT BOB KRUEGER WHO WAS APPOINTED TO THE SEAT TEMPORARILY BUT IS TRAILING REPUBLICAN KAY BAILEY HUTCHISON HAS SET OUT TO RESCUE HIS CAMPAIGN BY HONING IN ON VOTERS' WORRIES ABOUT THE HEALTHCARE SYSTEM IN THE PROCESS MR KRUEGER HAS SET OFF A PARTISAN ARGUMENT IN TEXAS SIMILAR TO THE ONE THAT SOON WILL UNFOLD IN WASHINGTON AT THE SAME TIME HE IS TESTING THE CLINTON ADMINISTRATION'S HIGHSTAKES CALCULATION THAT SHAKING UP THE HEALTH SYSTEM IS A GOOD POLITICAL GAMBLE IF WE CAN TURN THIS INTO A REFERENDUM ON HEALTH CARE WE CAN WIN THIS ELECTION MAINTAINS RAFE GREENLEE A SPOKESMAN FOR THE KRUEGER CAMPAIGN WHICH HAS BEEN CONSULTING WITH CLINTON POLITICAL ADVISERS IN RECENT DAYS MR KRUEGER HAS CALLED FOR ONEYEAR MANDATORY PRICE CONTROLS ON PRESCRIPTION DRUGS AND HEALTHINSURANCE PREMIUMS AND VOLUNTARY CONTROLS ON HOSPITAL AND DOCTOR FEES TO DRAMATIZE HIS COMPLAINTS ABOUT RISING PRICES CHARGED BY US DRUGMAKERS HE TRAVELED THIS WEEK ACROSS THE BORDER TO MEXICO TO BUY DRUGS PRICED WELL BELOW THOSE SOLD IN AMERICA AND HE HAS LAUDED THE EFFORT BY HILLARY RODHAM CLINTON'S HEALTHCARE TASK FORCE TO DEVISE A SWEEPING OVERHAUL THAT AMONG OTHER THINGS WOULD EXTEND COVERAGE TO SOME 37 MILLION UNINSURED AMERICANS MR KRUEGER ARGUES THAT PRICE CONTROLS WOULD BE ONLY A TEMPORARY TOURNIQUET UNTIL MAJOR HEALTHCARE REFORM TAMES PRICES PERMANENTLY I PERSONALLY BELIEVE HILLARY AND BILL CLINTON HAVE BEEN BRAVE AND BOLD TO TRY TO OVERHAUL THE SYSTEM HE SAID IN A DEBATE THIS WEEK KRUEGER AIDES THINK AMERICANS' INSECURITY ABOUT THE FUTURE OF THEIR HEALTH COVERAGE MAKES THE ISSUE POLITICALLY POTENT AND MR KRUEGER HAS CHALLENGED MS HUTCHISON TO A DEBATE SOLELY ON HEALTH CARE IN RESPONSE MS HUTCHISON THE TEXAS STATE TREASURER IS MUSTERING MANY OF THE SAME ARGUMENTS AND COUNTERPROPOSALS THAT REPUBLICANS IN WASHINGTON ARE LIKELY TO OFFER SHE RIDICULES MR KRUEGER'S PROPOSAL FOR PRICE CONTROLS MAINTAINING THAT THEY WOULD CRIPPLE DRUG COMPANIES' RESEARCH PROGRAMS AND FORCE CONSUMERS TO WAIT IN LINE FOR SERVICES MS HUTCHISON MAINTAINS THAT THE WAY TO CONTROL HEALTHCARE COSTS IS TO INJECT MORE COMPETITION INTO THE SYSTEM PRINCIPALLY SHE PROPOSES PHASING OUT TAX BENEFITS EMPLOYERS GET FOR ACQUIRING HEALTH INSURANCE FOR THEIR EMPLOYEES AND TRANSFERRING THE BENEFITS TO INDIVIDUALS IN THE FORM OF TAX CREDITS FOR PURCHASING INDIVIDUAL HEALTH INSURANCE FUNDS FROM THE TAX CREDITS ALSO COULD BE SAVED IN SPECIAL SAVINGS ACCOUNTS TO BE USED FOR HEALTH COSTS THAT INSURANCE DOESN'T COVER IN THAT WAY MS HUTCHISON ARGUES CONSUMERS WOULD HAVE MORE FREEDOM AND MORE INCENTIVE TO SHOP FOR THE MOST ECONOMICAL HEALTHCARE PLANS IN ADDITION SHE PROPOSES TO CLAMP DOWN ON MEDICAL MALPRACTICE LAWSUITS WHICH SHE ARGUES ARE DRIVING UP PRICES AND POSING A MAJOR PROBLEM FOR CONSUMERS FOR THE KRUEGER CAMPAIGN LIKE THE CLINTON ADMINISTRATION THE HEAVY FOCUS ON HEALTH CARE REPRESENTS A GAMBLE BY ZEROING IN ON THE ISSUE MR KRUEGER IS TRYING TO REPEAT THE SUCCESS OF ANOTHER DEMOCRAT SEN HARRIS WOFFORD OF PENNSYLVANIA WHEN HE PURSUED A SIMILAR STRATEGY IN WINNING A SPECIAL SENATE ELECTION IN 1991 IT'S NO COINCIDENCE THAT THE POLITICAL ADVISERS WHO SERVED BOTH SEN WOFFORD AND PRESIDENT CLINTON ARE JAMES CARVILLE AND PAUL BEGALA AND THAT MR BEGALA HAS BEEN PROVIDING ADVICE IN RECENT DAYS TO THE KRUEGER CAMPAIGN 9305210102 930521 HARTEHANKS CALLS DEBENTURES SAN ANTONIO HARTEHANKS COMMUNICATIONS INC SAID IT WILL REDEEM HALF OF ITS 200 MILLION IN 11 7/8 SUBORDINATED DEBENTURES AT 103446 OF FACE VALUE THE DEBENTURES FORMERLY DUE IN 2000 WILL BE REDEEMED ON OR ABOUT AUG 1 THE COMPANY SAID HARTEHANKS WHICH IS PRIVATELY TRADED BUT HAS LISTED ITS DEBENTURES ON THE AMERICAN STOCK EXCHANGE SAID IT IS REFINANCING THE DEBT WITH 220 MILLION IN REVOLVING CREDIT AND A 100 MILLION TERM LOAN FROM NINE BANKS AT A FLOATING INTEREST RATE THAT IS NOW AT ABOUT 5 HARTEHANKS OWNS NEWSPAPERS SHIPPERS AND A NETWORK TELEVISION AFFILIATE BASED IN SAN ANTONIO 9305210101 930521 TECHNOLOGY & HEALTH SYNERGEN FINDS PROTEIN THAT MAY OFFER PATH TO NEW TREATMENT FOR PARKINSON'S BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL A NEW TREATMENT FOR PARKINSON'S DISEASE MAY ARISE SOMEDAY FROM A DISCOVERY BY RESEARCHERS AT SYNERGEN INC A SMALL BIOTECHNOLOGY COMPANY IN BOULDER COLO THE SYNERGEN SCIENTISTS REPORT ISOLATING A NATURAL NERVE GROWTH FACTOR OR PROTEIN THAT IN LABORATORY STUDIES APPEARS TO PROMOTE THE GROWTH OF NERVE CELLS THAT SPECIFICALLY DIE OFF IN PARKINSON'S DISEASE IN PRELIMINARY EXPERIMENTS WITH LABORATORY RODENTS THE PROTEIN WAS ABLE TO MUTE DEBILITATING SYMPTOMS SIMILAR TO THOSE THAT AFFECT HUMAN VICTIMS OF THE DISEASE PARKINSON'S IS A DEGENERATIVE NERVE DISORDER IN WHICH VICTIMS DEVELOP TREMORS AND MUSCLE RIGIDITY THE ILLNESS EVENTUALLY CAUSES DEATH ABOUT ONE MILLION AMERICANS SUFFER FROM THE DISORDER AT PRESENT THERE ARE SEVERAL MEDICINES THAT CAN SLOW THE INTENSITY OF SYMPTOMS BUT THEIR EFFECTIVENESS IS LIMITED OFTEN WEARING OFF AFTER A FEW YEARS OF USE IF PROVEN EFFECTIVE THE DRUG WOULD BE A BOON TO FLEDGLING SYNERGEN WHOSE FINANCIAL PROSPECTS RECENTLY DIMMED WHEN STUDIES OF ITS LEAD EXPERIMENTAL MEDICINE TURNED SOUR THAT DRUG CALLED ANTRIL IS BEING DEVELOPED FOR SEPSIS A DEADLY KIND OF INFECTION THAT CAN ATTACK SEVERELY ILL HOSPITAL PATIENTS THE COMPANY PLANS NEW TESTS OF THE DRUG AS FOR THE NEW PRODUCT WE'RE AT A VERY EARLY STAGE OF DEVELOPMENT SAID FRANK COLLINS VICE PRESIDENT FOR NEUROSCIENCE RESEARCH AT SYNERGEN WHO LED THE DISCOVERY PROJECT BUT WE ALSO ARE VERY HOPEFUL THAT THE PROTEIN WILL BE EFFECTIVE DR COLLINS SAID SYNERGEN AND ITS COLLABORATORS ARE PLANNING TO TEST THE NEW DRUG SOON IN PRIMATES THAT HAVE A FORM OF THE DISEASE SIMILAR TO PARKINSON'S IF THE TESTS GO WELL HUMAN TRIALS WOULDN'T START FOR A YEAR OR MORE IN A SCIENTIFIC REPORT RELEASED IN TODAY'S ISSUE OF THE JOURNAL SCIENCE DR COLLINS AND HIS COLLEAGUES SAID THAT BRAIN CELLS TREATED WITH GDNF IN A TEST TUBE LIVED LONGER AND SPROUTED THICKER CONNECTIONS THAN CELLS LEFT UNTREATED IN PARTICULAR THE RESEARCHERS REPORTED THAT GDNF GENERATED THE GROWTH OF NEURONS THAT MANUFACTURE DOPAMINE A NERVETRANSMITTING CHEMICAL THAT IS IN SHORT SUPPLY IN PARKINSON'S PATIENTS CURRENT DRUG TREATMENTS ARE LARGELY FOCUSED ON PROVIDING ADDITIONAL DOPAMINE TO THE BRAIN OR ON TRIGGERING DOPAMINEMAKING NEURONS TO RELEASE MORE OF THE CHEMICAL FOR REASONS STILL UNKNOWN THESE DOPAMINEMAKING CELLS DIE OFF IN PEOPLE WITH THE DISEASE GDNF APPEARS TO WORK DIFFERENTLY THAN EXISTING MEDICINES BY PROMOTING THE GROWTH OF THESE BRAIN CELLS PERHAPS EVEN PROTECTING THEM FROM DYING OFF THE RESEARCHERS SAY THE SCIENTISTS ASSUME THAT PROTECTED AND VIBRANT CELLS WILL INCREASE THE LEVELS OF DOPAMINE IN THE BRAIN THEREBY SLOWING OR REVERSING THE DISEASE'S PROGRESS THE RESEARCHERS SAID THEY FOUND GDNF WHILE SEEKING A MORE EFFECTIVE PARKINSON'S TREATMENT IN ONE SERIES OF EXPERIMENTS THE SCIENTISTS FOUND THAT A SUBSTANCE PRODUCED BY BRAIN CELLS CALLED GLIAL CELLS SEEMED TO SPUR NEURONAL GROWTH THE SCIENTISTS SAID THE PROTEIN IS ESPECIALLY INTERESTING BECAUSE IT DOESN'T SEEM TO PROMOTE GROWTH OF OTHER BRAIN CELLS WHICH MAY HELP TO LIMIT SIDE EFFECTS IN AN EVENTUAL MEDICINE BASED ON THE PROTEIN AT PRESENT DOCTORS TREAT PATIENTS WITH LDOPAMINE A VERSION OF DOPAMINE SOLD BY SEVERAL COMPANIES INCLUDING A UNIT OF DUPONT CO AND ELDEPRYL SOLD BY A US UNIT OF SANDOZ AG SCIENTISTS IN THE US ALSO ARE ATTEMPTING TO AMELIORATE THE DISEASE BY IMPLANTING FETAL BRAIN CELLS INTO THE BRAINS OF PATIENTS BUT RESULTS OF SIMILAR EXPERIMENTS CONDUCTED ELSEWHERE HAVEN'T BEEN CONCLUSIVE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY SYNERGEN CLOSED AT 11 DOWN 25 CENTS 9305210100 930521 REVIEW & OUTLOOK EDITORIAL ASIDES WILD RIDE THE STOCK MARKET GAINING 23 POINTS YESTERDAY AFTER 55 POINTS THE DAY BEFORE IS BEGINNING TO REMIND US OF THAT NEW ROLLERCOASTER RIDE THE BATMAN NO SEATS YOU'RE STRAPPED INTO A STIFF VEST AND WITH LEGS HANGING OUT YOU GO FLYING UP DOWN OVER AND OUT YOU'RE HAVING FUN BUT YOU DON'T KNOW QUITE WHY OR WHERE IT WILL END 9305210098 930521 FOREIGN EXCHANGE DOLLAR DRIFTS AND ENDS MOSTLY LOWER AS POUND SURGES ON SMALL JOBLESS DROP BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED MOSTLY LOWER THURSDAY AFTER HAVING DRIFTED AMID TRADING THAT WAS THIN IN THE ABSENCE OF SIGNIFICANT FRESH NEWS AND A HOLIDAY THROUGHOUT MUCH OF EUROPE STERLING HOWEVER SURGED IN THE WAKE OF A SMALL BUT UNEXPECTED DROP IN BRITISH UNEMPLOYMENT THAT WAS INTERPRETED AS AN INDICATION OF UK ECONOMIC RECOVERY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16172 MARKS DOWN FROM 16230 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11065 YEN UNCHANGED FROM THE DAY BEFORE STERLING WAS TRADING AT 15550 UP FROM 15440 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 11058 YEN AND AT 16170 MARKS TRADERS SAID THE ASCENSION DAY HOLIDAY REMOVED LARGE AMOUNTS OF VOLUME FROM MARKETS IN EUROPE TRADING RANGES MIGHT HAVE BEEN EVEN TIGHTER BUT DEALERS SAID SMALL ORDERS HAD AN EXAGGERATED IMPACT IN THE THIN MARKET FOLLOWING WEDNESDAY'S VOLATILITY IN YEN TRADING MANY TRADERS OF THE JAPANESE CURRENCY MOVED TO THE SIDELINES TO SEE WHETHER A NEW TREND EMERGED SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN RUMORS THAT THE BANK OF JAPAN CHECKED RATES OR PERHAPS EVEN BOUGHT DOLLARS AT AROUND 11050 YEN IN ASIAN TRADING HELPED SUPPORT THE DOLLAR DURING THE DAY MR PETTIT SAID ON THE OTHER HAND BEARISHNESS ABOUT THE DOLLAR THAT SURFACED WEDNESDAY WHEN AN UNEXPECTEDLY WIDE US TRADE DEFICIT FOR MARCH WAS REPORTED CONTINUED TO WEIGH ON THE CURRENCY THURSDAY PARTICIPANTS SAID THE 1021 BILLION MARCH TRADE GAP WAS THE LARGEST IN ONE MONTH SINCE MAY 1989 IT RAISED CONCERNS ABOUT BOTH THE STRENGTH OF THE US ECONOMIC RECOVERY AND WHETHER THE US MIGHT SEEK A FIRMER YEN AS ONE WAY TO RESTRAIN THE DEFICIT MORE THAN HALF OF WHICH WAS WITH JAPAN IN MARCH DEALERS SAID THE DOLLAR HELD TO A NARROW RANGE AGAINST THE YEN AS A RESULT OF THESE COMPETING FACTORS MR PETTIT SAID AGAINST THE MARK THE DOLLAR SLIPPED SLOWLY THROUGHOUT THE DAY IN TECHNICALLY MOTIVATED TRADING BUT IT REMAINS RANGEBOUND MR PETTIT ADDED THE US CURRENCY BROKE BELOW AN IMPORTANT TECHNICALSUPPORT LEVEL AT 16170 MARKS EARLY IN NORTH AMERICAN TRADING AND THIS EXTENDED ITS DECLINE HE SAID IT DIDN'T BREAK HIGHER SO IT PUSHED TO THE DOWNSIDE AND THAT PROVED A BIT MORE VULNERABLE MR PETTIT SAID TRADERS SAID THE MARKET SHRUGGED OFF US WEEKLY UNEMPLOYMENT DATA THAT LARGELY MET MARKET EXPECTATIONS INITIAL STATE JOBLESS CLAIMS ROSE 7000 ON A SEASONALLY ADJUSTED BASIS IN THE WEEK ENDED MAY 15 A SURVEY OF ECONOMISTS BY DOW JONES CAPITAL MARKETS REPORT HAD FORECAST AN INCREASE OF 3000 IN CONTRAST TO THE DOLLAR'S SLIPPAGE THURSDAY STERLING VAULTED AFTER APRIL UNEMPLOYMENT DATA SHOWED A SLIGHT DECREASE IN JOBLESSNESS TRADERS SAID THE NUMBER OF JOBLESS ON A SEASONALLY ADJUSTED BASIS DROPPED 1400 IN APRIL ACCORDING TO THE DEPARTMENT OF EMPLOYMENT THE MARKET HAD EXPECTED AN INCREASE OF 12000 IT WAS THE THIRD DECLINE IN JOBLESSNESS IN AS MANY MONTHS THE UK APRIL UNEMPLOYMENT RATE STOOD AT 105 ON A SEASONALLY ADJUSTED BASIS FLAT FROM MARCH IT WASN'T A BIG DROP BUT IT WAS BETTER THAN EXPECTED SO THE POUND RALLIED MR PETTIT SAID SPECIFICALLY THE DATA REKINDLED RECENTLY WAVERING SENTIMENT ABOUT THE EMERGENCE OF AN ECONOMIC TURNAROUND IN THE UK HE SAID LATE IN NEW YORK THURSDAY STERLING TRADED AT 25157 MARKS UP FROM 25064 MARKS LATE WEDNESDAY INTEREST IN STERLING THERE HAVE BEEN A LOT OF PEOPLE WANTING TO BUY STERLING AND THIS SENDS A SIGNAL THERE ARE BUYERS IN THE PIPELINE SAID RAJA RAMACHANDRAN A FOREIGNEXCHANGE ANALYST AT TECHNICAL DATA BOSTON BUT HE ADDED THAT INTERVENTION BY THE BANK OF ENGLAND TO SLOW OR HALT STERLING'S RISE IS POSSIBLE IF THE CURRENCY TAKES OFF QUICKLY A SHARP RISE IN THE POUND WOULD REDUCE THE IMPROVED COMPETITIVENESS OF BRITISH GOODS IN EUROPEAN MARKETS THAT FOLLOWED THE UK CURRENCY'S WITHDRAWL FROM EUROPE'S EXCHANGE RATE MECHANISM IN SEPTEMBER TRADERS SAID IMPROVING EXPORTS ALONG WITH LOWER INTEREST RATES HAVE BEEN AN INTEGRAL PART OF BRITAIN'S NASCENT RECOVERY THEY ADDED INDEED RUMORS CIRCULATED THURSDAY THAT THE BRITISH CENTRAL BANK HAD BEEN SELLING STERLING DEALERS SAID 9305210097 930521 INTERNATIONAL SONY MATSUSHITA POST SHARP DECLINES IN GROUP PROFIT FOR LATEST FISCAL YEAR BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO JAPAN'S LARGEST MAKERS OF CONSUMER ELECTRONICS POSTED SHARP DECLINES IN GROUP NET INCOME AND PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 SIGNALING THAT THE INDUSTRY'S FOURYEAR SLUMP HASN'T ENDED SONY FOR THE SECOND YEAR IN A ROW ALSO POSTED A GROUP NET LOSS IN THE FOURTH QUARTER WHILE ITS LARGER RIVAL MATSUSHITA REPORTED THAT ITS FOURTHQUARTER NET INCOME ROSE SHARPLY ANALYSTS HOWEVER SAID BOTH RESULTS WERE MORE LIKELY REFLECTIONS OF ACCOUNTING MANEUVERS THAN ACTUAL BUSINESS PERFORMANCE SONY'S GROUP NET INCOME FOR THE FISCAL YEAR FELL 70 TO 3626 BILLION YEN 3284 MILLION FROM 12012 BILLION YEN A YEAR EARLIER AND ITS GROUP PRETAX PROFIT FELL 57 TO 9256 BILLION YEN FROM 21614 BILLION YEN THOSE AMOUNTS REFLECT AN EXTRAORDINARY GAIN IN THE PREVIOUS YEAR DUE TO SONY'S SALE OF STOCK IN A MUSIC SUBSIDIARY ABSENT THAT GAIN SONY'S GROUP NET INCOME FELL 38 IN THE FISCAL YEAR JUST ENDED WHILE ITS GROUP PRETAX PROFIT DECLINED 40 SONY'S CONSOLIDATED SALES ROSE 16 TO 3993 TRILLION YEN FROM 3929 TRILLION YEN MATSUSHITA WHICH SELLS AUDIOVISUAL EQUIPMENT AND HOUSEHOLD APPLIANCES UNDER THE PANASONIC TECHNICS QUASAR AND NATIONAL BRAND NAMES REPORTED GROUP NET INCOME FOR THE YEAR FELL TO 3841 BILLION YEN 3478 MILLION FROM 13287 BILLION YEN A YEAR AGO A 71 DECLINE GROUP SALES FELL 53 TO 7056 TRILLION YEN FROM 745 TRILLION YEN MATSUSHITA'S GROUP PRETAX PROFIT FELL TO 16835 BILLION YEN FROM 36342 BILLION YEN A 54 DECLINE SONY AND MATSUSHITA BLAMED THEIR POOR PERFORMANCE ON THE RAPID STRENGTHENING OF THE YEN AGAINST THE DOLLAR SATURATED MARKETS AND THE SLUGGISH JAPANESE ECONOMY JAPANESE CONSUMERELECTRONICS MAKERS RELY HEAVILY ON DOMESTIC SALES ANALYSTS SAY SINCE THE COMPANIES EXPECT HIGHER RETURNS FROM SALES IN THE RELATIVELY HIGHPRICED JAPANESE MARKET A STRONG YEN MEANWHILE REDUCES THE YENBASED VALUE OF OVERSEAS SALES AND OVER TIME MAKES JAPANESE EXPORTS MORE EXPENSIVE IN FOREIGN MARKETS THE JAPANESE CONSUMER ELECTRONICS GIANTS CAN USUALLY COUNT ON THEIR USBASED ENTERTAINMENT SUBSIDIARIES MCA INC FOR MATSUSHITA AND SONY PICTURES AND SONY MUSIC ENTERTAINMENT FOR SONY TO OFFSET SOME OF THEIR LOSSES IN CONSUMER ELECTRONICS THIS YEAR HOWEVER BOTH COMPANIES SAID THAT WHILE ENTERTAINMENT REVENUE ROSE IN DOLLAR TERMS THE YEN'S RECENT APPRECIATION LARGELY ELIMINATED THOSE GAINS IN THE COMPANIES' BOTTOM LINES SONY REPORTED A FOURTHQUARTER GROUP NET LOSS OF 879 BILLION YEN COMPARED WITH A 2209 BILLION YEN LOSS IN THE YEAREARLIER QUARTER ON A 15 RISE IN SALES TO 89722 BILLION YEN SONY'S FOURTHQUARTER GROUP PRETAX LOSS WAS 252 BILLION YEN COMPARED WITH A 222 BILLION YEN LOSS IN THE YEAREARLIER QUARTER IN NEW YORK SONY USA VICE CHAIRMAN MICHAEL P SCHULHOF SAID ENTERTAINMENT GROUP EARNINGS ACCOUNTED FOR 499 OF SONY'S TOTAL OPERATING PROFIT WORLDWIDE EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION FOR THE ENTERTAINMENT GROUP REPORTED IN US DOLLARS ROSE 7 TO 904 MILLION FROM 845 MILLION REVENUE AT SONY PICTURES CLIMBED 25 TO 33 BILLION WHILE MUSIC COMPANY REVENUE ROSE 12 TO 33 BILLION PETER GUBER CHAIRMAN OF SONY PICTURES ENTERTAINMENT SAID THE MOVIE COMPANY REPORTED ITS THIRD STRAIGHT YEAR OF HIGHER REVENUE PROFITS AND MARKET SHARE IN THE FISCAL YEAR SONY'S TWO STUDIOS HAD 2001 OF THE US BOX OFFICE AND 23 OF THE INTERNATIONAL MARKET HE ADDED MATSUSHITA MEANWHILE SAID FOURTHQUARTER GROUP NET INCOME SURGED TO 948 BILLION YEN FROM 276 BILLION YEN A YEAR EARLIER SALES FELL 65 TO 1662 TRILLION YEN FROM 1777 TRILLION YEN THE COMPANIES DIVERGED IN THEIR FORECASTS FOR THE COMING YEAR WITH SONY SUGGESTING THAT THE HIGH YEN WILL DEPRESS SALES AND MATSUSHITA PREDICTING INCREASES IN NET INCOME AND PRETAX PROFIT SONY FORECAST THAT CONSOLIDATED SALES IN THE CURRENT YEAR WILL FALL TO 391 TRILLION YEN A 2 DECLINE ACCOMPANIED BY A 17 DECLINE IN NET INCOME TO 30 BILLION YEN AND A 6 DECLINE IN PRETAX PROFIT TO 87 BILLION YEN MATSUSHITA ON THE OTHER HAND SAID IT EXPECTS FLAT ANNUAL CONSOLIDATED SALES OF 706 TRILLION YEN A 46 INCREASE IN NET INCOME TO 56 BILLION YEN AND A 25 RISE IN PRETAX PROFIT TO 210 BILLION YEN SEPARATELY MATSUSHITA SAID IT WOULD ISSUE 200 BILLION YEN IN UNSECURED BONDS BY AUGUST LARGELY TO FINANCE ITS ACQUISITION OF MATSUSHITA ELECTRONICS CORP A JOINT VENTURE BETWEEN MATSUSHITA AND PHILIPS ELECTRONICS NV OF THE NETHERLANDS 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 9305210096 930521 ROLLWAGEN WITHDRAWS AS THE NOMINEE FOR NO 2 JOB AT COMMERCE DEPARTMENT BY ASRA Q NOMANI AND CHRISTI HARLAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON JOHN ROLLWAGEN THE FORMER CRAY RESEARCH INC CHIEF EXECUTIVE WITHDREW AS THE NOMINEE FOR THE COMMERCE DEPARTMENT'S NO 2 JOB DEALING A STUNNING BLOW TO PRESIDENT CLINTON'S LOFTY GOAL OF TURNING THE SLEEPY AGENCY INTO A TECHNOLOGICAL POWERHOUSE THE RESIGNATION COMES IN THE MIDST OF A SECURITIES AND EXCHANGE COMMISSION PROBE INTO INSIDER TRADING IN THE STOCK OF CRAY COMPUTER CORP A COLORADO SPRINGS COLO SPINOFF OF CRAY RESEARCH A SUPERCOMPUTER MAKER EARLIER THIS MONTH PEOPLE FAMILIAR WITH THE INVESTIGATION SAID MR ROLLWAGEN IS AMONG THE TARGETS OF THE SEC INVESTIGATION THE PROBE RAISED SERIOUS CONCERN ABOUT THE CLINTON ADMINISTRATION'S ABILITY TO WIN REQUIRED CONGRESSIONAL APPROVAL FOR MR ROLLWAGEN'S NOMINATION CONGRESSIONAL AIDES HAVE SAID SENATORS PLANNED TO HOLD UP MR ROLLWAGEN'S CONFIRMATION HEARINGS UNTIL THE CLOUD OF THE INVESTIGATION HAD BEEN LIFTED MR ROLLWAGEN'S SUCCESSOR AT CRAY RESEARCH JOHN F CARLSON SAID EARLIER THIS WEEK THAT THE SEC INTENDS TO QUESTION SOME EMPLOYEES UNDER OATH ABOUT TRADING IN CRAY COMPUTER IN LATE 1991 MR ROLLWAGEN HAS ALREADY BEEN QUESTIONED BY THE SEC MR ROLLWAGEN'S LAWYER CHARLES DAVIDOW OF WASHINGTON SAID HE AND HIS CLIENT CONTINUE TO BELIEVE THAT THE SEC PROCESS WILL WORK ITSELF OUT HE HAS DONE NOTHING WRONG MR DAVIDOW SAID MR ROLLWAGEN'S WITHDRAWAL LEAVES THE DEPARTMENT A SHADOW OF THE IMAGE THAT SECRETARY RONALD BROWN HAS TRIED TO CREATE IN REPEATED PUBLIC APPEARANCES MR BROWN HASN'T FILLED HIS TOP TRADE AND TECHNOLOGY POSTS HIGHPOWERED PEOPLE IN CORPORATE AMERICA WALL STREET AND ACADEMIA HAVE TURNED DOWN INVITATIONS BY MR BROWN TO JOIN HIM AT THE DEPARTMENT RECENTLY DEREK SHEARER A FRIEND OF MR CLINTON'S LEFT THE AGENCY FOR WHAT HE DESCRIBED AS PERSONAL REASONS AND MR BROWN HAS APPEARED TO HAVE ONLY A SLIGHT ROLE IN MAJOR POLICY DECISIONS MR BROWN WAS CERTAINLY PROUD THAT HE WAS ABLE TO WOO MR ROLLWAGEN AS HIS DEPUTY SECRETARY NOMINEE IN HIS FIRST ADDRESS TO COMMERCE DEPARTMENT EMPLOYEES EARLY IN THE NEW TERM HE INTRODUCED MR ROLLWAGEN WHO WAS THERE WITH HIS WIFE WE HAVE RECRUITED A SUPERSTAR A GIANT IN THE FIELD OF TRADE TECHNOLOGY AND INNOVATION HE SAID AT A SEMICONDUCTOR INDUSTRY ASSOCIATION DINNER HE AGAIN PARADED MR ROLLWAGEN WITH RELISH AND MR ROLLWAGEN RESPONDED BY STANDING UP AND WAVING TO THE IMPORTANT HITECH LOBBYISTS GATHERED THERE MR ROLLWAGEN NOTIFIED MR BROWN YESTERDAY MORNING THAT HE WOULD BE RETURNING TO MINNESOTA WITH HIS FAMILY MR ROLLWAGEN'S IMMEDIATE WORK PLANS AREN'T KNOWN EXCEPT THAT HE WON'T BE RETURNING TO CRAY RESEARCH BASED IN EAGAN MINN A SPOKESMAN FOR THE SUPERCOMPUTER MAKER SAID WE DON'T ANTICIPATE JOHN WILL REJOIN THE COMPANY IN ANY POSITION MR BROWN TOLD SENIOR COMMERCE OFFICIALS ABOUT THE DEPARTURE DURING AN AFTERNOON POLICY MEETING PUBLIC RELATIONS STAFFERS SCRAMBLED THROUGH THE AFTERNOON TO PREPARE STATEMENTS TO BLUNT THE BLOW OF THE DEPARTURE IN A BRIEF STATEMENT MR BROWN SAID WE ARE EXPLORING WAYS IN WHICH JOHN CAN CONTINUE TO HAVE A KEY AND VALUED ADVISORY ROLE TO THE DEPARTMENT AND TO ME PERSONALLY AS THE CLINTON ADMINISTRATION PURSUES ITS AGENDA OF A NEW AND PRODUCTIVE PARTNERSHIP BETWEEN THE PUBLIC AND PRIVATE SECTORS AN ASSOCIATE SAID HOWEVER THAT MR BROWN TOOK THE DECISION VERY HARD BECAUSE HE CONSIDERED MR ROLLWAGEN SUCH A FIND BEFORE THIS MR ROLLWAGEN PRIVATELY EXPRESSED SOME REGRET TO FRIENDS ABOUT TAKING THE JOB BECAUSE OF DIFFICULTY MOVING THROUGH THE DEPARTMENT'S SPRAWLING BUREAUCRACY ADMINISTRATION OFFICIALS HAVE SAID THAT MR ROLLWAGEN HAS PLAYED AN IMPORTANT ROLE ON POLICY DECISIONS RELATED TO THE AUTO INDUSTRY AND TRADE WITH JAPAN BUT FRIENDS ACKNOWLEDGE HE WAS TIRING OF THE SLOW PACE OF GOVERNMENT WORK IN HIS WITHDRAWAL LETTER MR ROLLWAGEN SAID HIS DECISION WASN'T PROMPTED BY THE SEC INVESTIGATION BUT SAID THE DELAY CAUSED BY THE INVESTIGATION GAVE HIM TIME TO DECIDE THAT HE WOULD BE MORE EFFECTIVE OUTSIDE THE BUREAUCRACY OF THE COMMERCE DEPARTMENT HE WROTE I NOW BELIEVE THAT IT IS FROM WITHIN THE PRIVATE SECTOR THAT I PERSONALLY CAN BE MOST EFFECTIVE IN ADDRESSING THE CRITICAL ECONOMIC ISSUES FACING OUR NATION THE SEC'S CHIEF OF ENFORCEMENT WILLIAM MCLUCAS SAID HE COULDN'T COMMENT ON THE INVESTIGATION IN REGARD TO MR ROLLWAGEN MR MCLUCAS SAID SEC INVESTIGATORS ROUTINELY ADVISE PERSONS CONTACTED IN AN INVESTIGATION THAT THEY SHOULD NOT CONSTRUE THE FACT OF AN INQUIRY AS AN INDICATION BY THE COMMISSION OR ITS STAFF THAT ANY VIOLATION OF LAW HAS OCCURRED 9305210095 930521 NAGS DON'T CHEW TOBACCO EITHER BUT THEY CAN'T BUNT WORTH A LICK BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL WHY ARE RACE HORSES BETTER THAN BASEBALL PLAYERS WELL JOKES FORMER RED SOX MANAGER JOE MORGAN IN A RADIO COMMERCIAL FOR A BOSTON RACE TRACK HORSES DON'T EXPECT TO BE PAID UNLESS THEY WIN THEY DON'T COMPLAIN ABOUT PLAYING TIME THEY DON'T FEUD WITH THE PRESS AND THEY DON'T EVEN THINK ABOUT MESSING AROUND WITH WOMEN UNTIL THEY RETIRE THE RED SOX AREN'T LAUGHING THOUGH IN FACT THE TEAM HAS ORDERED THE AD BANNED FROM RED SOX BROADCASTS EXERCISING A VETO IT HAS UNDER THE CONTRACT THEY PORTRAY BASEBALL PLAYERS AND BASEBALL IN A VERY NEGATIVE LIGHT IT UNFAIRLY STEREOTYPES OUR PLAYERS SAYS JAMES HEALEY VICE PRESIDENT BROADCASTING FOR THE RED SOX THE RED SOX SAY THEY ASKED SUFFOLK DOWNS TO CHANGE THE AD BUT THE TRACK REFUSED THE ACTION STRIKES SOME AS PETTY MR MORGAN IS A COLORFUL AREA NATIVE WHO USED TO DRIVE A SNOWPLOW FOR THE STATE IN THE OFFSEASON AS MANAGER HE WON TWO DIVISION TITLES IN FOUR YEARS BEFORE BEING FIRED AFTER THE 1991 SEASON SUFFOLK DOWNS A SMALL BOSTON TRACK THAT IS STRUGGLING TO REVIVE ITSELF ASKED MR MORGAN TO DO THE SPOT BECAUSE JOE MORGAN IS VERY WELL LIKED AND WE WANT TO BE CONSIDERED PART OF THE SPORTS SCENE IN BOSTON SAYS LOU RAFFETTO THE TRACK'S GENERAL MANAGER MR MORGAN A WELLKNOWN HORSE PLAYER DIDN'T HELP WRITE THE SPOT HE DECLINED COMMENT ON THE CONTROVERSY MR RAFFETTO SAYS MR MORGAN DONATED HIS 500 FEE TO A FUND FOR DISABLED JOCKEYS MR RAFFETTO WHOSE ADS WERE SCHEDULED TO STOP AT THE END OF THE MONTH WHEN THE SUFFOLK DOWNS SEASON IS OVER SAYS HE RECEIVED A 3000 REFUND ON HIS 14000 CONTRACT BUT HE PLANS TO KEEP RUNNING THE SPOTS ON OTHER RADIO STATIONS MR HEALEY SAYS THE RED SOX WERE PARTICULARLY UPSET ABOUT THE REFERENCE TO MESSING AROUND WITH WOMEN THAT'S BLATANTLY NOT TRUE WE HAVE A VERY GOOD GROUP OF PLAYERS WHO ARE GOOD FAMILY MEN HE SAYS A FEW YEARS AGO THOUGH STAR THIRD BASEMAN WADE BOGGS MADE NATIONAL HEADLINES BY CLAIMING TO BE ADDICTED TO SEX AFTER HIS ONTHEROAD MISTRESS SUED HIM LAST WINTER THE SOX LET HIM GO TO THE NEW YORK YANKEES MR HEALEY DIDN'T COMPLAIN ABOUT ANOTHER OF THE AD'S CLAIMS ABOUT THE ADVANTAGES OF HORSES HORSES DON'T EVEN SPIT AS MUCH 9305210094 930521 TIME WARNER INC INCREASES DIVIDEND UNVEILS NEW LOGO NEW YORK TIME WARNER INC WILL RAISE ITS QUARTERLY DIVIDEND 14 TO EIGHT CENTS A SHARE FROM SEVEN CENTS THE COMPANY SAID AT ITS ANNUAL SHAREHOLDERS' MEETING IT ALSO UNVEILED A NEW CORPORATE LOGO A RENDERING OF THE COMPANY NAME FRAMED BY LINES IT REPLACES A STYLIZED RENDERING OF AN EAR SURROUNDED BY AN EYE WE FELT THAT SIMPLIFYING THE CORPORATE LOGO WOULD MAKE FOR A MORE HARMONIOUS OVERALL IDENTITY SYSTEM SAID GERALD M LEVIN CHAIRMAN AND CHIEF EXECUTIVE THE ENTERTAINMENT AND PUBLISHING COMPANY'S DIVIDEND IS PAYABLE JUNE 14 TO HOLDERS OF RECORD JUNE 2 AS EXPECTED SHAREHOLDERS ELECTED FOUR NEW DIRECTORS CARLA A HILLS A FORMER US TRADE REPRESENTATIVE DAVID T KEARNS RETIRED XEROX CORP CHAIRMAN AND CHIEF EXECUTIVE REUBEN MARK COLGATEPALMOLIVE CO CHAIRMAN AND CHIEF EXECUTIVE AND FRANCIS T FAY VINCENT JR FORMER COMMISSIONER OF MAJORLEAGUE BASEBALL THE MEETING HELD IN THE HISTORIC APOLLO THEATER IN HARLEM STOOD IN SHARP CONTRAST TO LAST YEAR'S RAUCOUS EVENT WHICH WAS DOMINATED BY PROTESTS OVER THE COMPANY'S DISTRIBUTION OF THE SONG COP KILLER BY RAPMUSIC PERFORMER ICET THIS YEAR THE ONLY CONTROVERSY TO SURFACE CONCERNED A DECISION BY THE COMPANY TO REFRAIN FROM LAVISHING ATTENDEES WITH GIVEAWAYS OF TIME WARNER PRODUCTS ITEMS RANGING FROM RECORDINGS TO MAGAZINES TO MOVIES SEVERAL SHAREHOLDERS ROSE TO EXPRESS DISMAY WHILE OTHERS APPLAUDED THE DECISION RATHER THAN SPEND MONEY FOR THE GIVEAWAYS MR LEVIN SAID THE COMPANY DONATED 50000 TO TWO COMMUNITY EDUCATION PROJECTS ONE BASED IN HARLEM 9305210093 930521 ABREAST OF THE MARKET DOW INDUSTRIALS CLIMB TO 352328 FOR SECOND STRAIGHT RECORD CLOSE BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PROGRAM TRADING NEAR THE CLOSE PUSHED THE DOW JONES INDUSTRIAL AVERAGE TO A RECORD HIGH FOR THE SECOND STRAIGHT DAY MIMICKING WEDNESDAY'S LATE SURPRISE RALLY THE INDUSTRIALS SWUNG BACK AND FORTH THROUGHOUT THE SESSION AFTER SHOOTING UP ABOUT 15 POINTS IN MORNING TRADING THE BAROMETER BOUNCED UP 2325 POINTS OR 066 TO FINISH AT 352328 BREAKING ITS RECORD OF 350003 BROADER INDEXES REMAINED HIGHER THE ENTIRE DAY THE STANDARD & POOR'S 500STOCK INDEX GAINED 302 POINTS OR 067 TO END AT 45059 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 156 OR 063 TO 24842 I THINK THE MARKET GAVE A VERY VERY BULLISH SIGN SAID ROBERT L KAHAN PARTNER AND MANAGER OF EQUITY TRADING AT MONTGOMERY SECURITIES STOCKS DIDN'T GIVE UP GAINS AND THE MOMENTUM BUILT UP THROUGH THE DAY THERE WAS NO RETRENCHMENT IN PRICES OR IN THE BOND MARKET THOUGH THE 30YEAR BOND SLIPPED ITS YIELD REMAINED BELOW THE 7 MARK WHICH GAVE INVESTORS CONFIDENCE TO BUY STOCKS SOME TRADERS ALSO ATTRIBUTED PART OF THE SESSION'S IMPRESSIVE SHOWING TO REPOSITIONING AHEAD OF DOUBLE WITCHING TODAY WHEN OPTIONS ON INDIVIDUAL STOCKS AND SOME STOCK INDEXES ARE DUE TO EXPIRE MARKET WATCHERS SAID INVESTORS TOOK LITTLE NOTICE OF JOBLESS DATA YESTERDAY MORNING THE GOVERNMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS ROSE BY 7000 TO A TOTAL OF 344000 IN THE WEEK ENDED MAY 15 ECONOMISTS HAD EXPECTED CLAIMS TO HAVE RISEN BY ABOUT 3000 BIG BOARD VOLUME TOTALED 279550000 SHARES THINNER THAN WEDNESDAY'S TOTAL OF 340160000 ON THE BIG BOARD THERE WERE 1130 ISSUES ADVANCING AND 775 DECLINING THE AMERICAN STOCK EXCHANGE INDEX ALSO SET A SECOND CONSECUTIVE HIGH GAINING 237 POINTS OR 055 TO 43229 LOOKING AHEAD MARY FARRELL A MARKET STRATEGIST AT PAINEWEBBER INC SAID THE MARKET'S STRENGTH SHOULD CONTINUE BUT MORE MODERATELY ALTHOUGH PROFITTAKING WILL UNDOUBTEDLY KICK IN OVER THE NEXT FEW SESSIONS MS FARRELL SAID I THINK IT'S CHARACTERISTIC OF WHAT WE'VE SEEN IN THE PAST YEAR THAT WE GET THIS RALLY RIGHT AFTER A NONPERFORMANCE PERIOD SHE ADDED THAT GROWTH ISSUES AS OPPOSED TO CYCLICAL STOCKS PROBABLY WILL CONTINUE TO LEAD THE MARKET THE MOST ACTIVE ISSUE CITICORP MOVED 1/2 HIGHER TO 28 3/4 THE COMPANY CONFIRMED IT WILL ADD EASTMAN KODAK'S FORMER FINANCIAL OFFICER CHRISTOPHER J STEFFEN TO ITS MANAGEMENT TEAM NEXT MONTH CITIBANK ALSO SAID IT PLANS TO OFFER ABOUT 10 MILLION DEPOSITARY SHARES OF NONCUMULATIVE PERPETUAL PREFERRED STOCK AT 25 A SHARE CASINO ISSUES WERE ALSO STRONG AND MIRAGE RESORTS INC ROCKETED 3 3/8 TO 44 3/4 COMPUTER ASSOCIATES JUMPED 1 1/4 TO 30 AFTER REPORTING FISCAL FOURTHQUARTER EARNINGS OF 57 CENTS A SHARE COMPARED WITH 33 CENTS A YEAR EARLIER ANALYSTS HAD LOOKED FOR EARNINGS OF 49 CENTS A SHARE FOR THE QUARTER THE COMPANY ALSO RAISED ITS SEMIANNUAL DIVIDEND TO SEVEN CENTS A SHARE FROM FIVE CENTS AND APPROVED THE REPURCHASE OF AN ADDED 10 MILLION SHARES IN THE OPEN MARKET FROM TIME TO TIME HILTON HOTELS SOARED 2 1/8 TO 48 1/2 FOLLOWING AN ANNOUNCEMENT THAT IT WILL CREATE TWO PRINCIPAL DIVISIONS IN A MANAGEMENT REARRANGEMENT THAT IT EXPECTS WILL SAVE 6 MILLION TO 8 MILLION ANNUALLY A HILTON OFFICER SAID THE COMPANY WILL LIKELY CUT SOME JOBS IN CONNECTION TO THE CONSOLIDATION TRW INC INCREASED 2 1/8 TO 67 1/8 AFTER ITS CHAIRMAN SAID THE COMPANY HAS ESSENTIALLY COMPLETED ITS RESTRUCTURING WHICH WILL CUT 125 MILLION IN ANNUAL PRETAX COSTS BY THE END OF THE YEAR PRUDENTIAL SECURITIES RAISED ITS INVESTMENT RATING ON THE AUTOMOBILE PARTS FIRM TO BUY FROM HOLD IMC FERTILIZER HIT THE SKIDS ON A COUPLE OF BOUTS OF BAD NEWS ITS STOCK FELL 3 3/4 TO 29 7/8 THE COMPANY SAID IT EXPECTS TO REPORT A FISCAL FOURTHQUARTER LOSS COMPARED WITH NET INCOME OF 35 CENTS A SHARE A YEAR EARLIER IMC ALSO SAID ANGUS CHEMICAL CO FILED A LAWSUIT AGAINST IT IN LOUISIANA SEEKING DAMAGES IN ADDITION TO A PREVIOUS SETTLEMENT WITH ANGUS BAD NEWS CANCELED OUT GOOD NEWS ON TRITON ENERGY WHICH SANK 2 3/4 TO 40 1/4 THE COMPANY RELEASED INITIAL TEST RESULTS THAT CONFIRM THREE HYDROCARBONBEARING ZONES IN ITS CUPIAGUA NO 1 WELL THE FIRST WELL DRILLED IN THE NORTHERNMOST OF TWO FIELDS TRITON AND ITS PARTNERS ARE DEVELOPING IN COLOMBIA BUT LATE WEDNESDAY TRITON CONFIRMED THAT THE JUSTICE DEPARTMENT IS INVESTIGATING WHETHER THE COMPANY VIOLATED FEDERAL LAW IN CONNECTION WITH ITS INDONESIAN OPERATIONS 9305210092 930521 LETTERS TO THE EDITOR OUR ASBESTOS AGENDA FAIRNESS TO ALL THE CLASSACTION SUIT ON BEHALF OF FUTURE ASBESTOS CLAIMANTS REFERRED TO BY FREDERICK M BARON IN HIS MAY 6 COUNTERPOINT COLUMN AN ASBESTOS SETTLEMENT WITH A HIDDEN AGENDA REPRESENTS A VERY IMPORTANT AND POSITIVE STEP IN RESOLVING LITIGATION OTHERWISE PLAGUED BY LONG DELAYS AND GROSS INEQUITIES MR BARON UNFAIRLY CRITICIZES THIS SETTLEMENT CLASSACTION SUIT FAR FROM BEING DEFENSIVE ARMSTRONG WORLD INDUSTRIES IS PROUD TO BE A MEMBER OF THE CENTER FOR CLAIMS RESOLUTION CCR WHICH TOOK THE INITIATIVE TO NEGOTIATE WITH TWO OF THE LEADING NATIONAL COUNSELS WHO REPRESENT A SIGNIFICANT NUMBER OF CURRENT PLAINTIFFS IN ORDER TO FIND AN EQUITABLE RESPONSE TO THE PROBLEMS CREATED BY THE MASSIVE NUMBERS OF ASBESTOSRELATED SUITS THE TRADITIONAL TORT SYSTEM IS NOT WORKING VIRTUALLY ANYONE FAMILIAR WITH THE BACKLOG OF ASBESTOSRELATED CASES IN THE COURTS WILL ACKNOWLEDGE THAT THE INTERESTS OF ASBESTOS CLAIMANTS HAVE NOT BEEN WELLSERVED THE COURTS HAVE BEEN AGGRESSIVELY SEEKING ANOTHER ALTERNATIVE THE PROPOSED SETTLEMENT CLASSACTION PLAN PROVIDES A MEANS FOR COMPENSATING DESERVING ASBESTOS CLAIMANTS PROMPTLY AND FAIRLY WITH CONFIDENCE THAT THE 20 COMPANIES THAT ARE MEMBERS OF THE CCR WILL HAVE THE ASSETS AVAILABLE TO PAY THEIR FAIR SHARE DESPITE WHAT MR BARON IMPLIES THIS SETTLEMENT IS NOT BEING IMPOSED ON ANYONE THE SETTLEMENT WILL BECOME FINAL ONLY WHEN APPROVED BY THE COURTS AND AS MR BARON KNOWS HE AND OTHER INTERESTED PERSONS INCLUDING PLAINTIFFS' ATTORNEYS WILL HAVE THE OPPORTUNITY TO PRESENT THEIR VIEWS TO THE COURT DURING A FULL AND EXTENSIVE FAIRNESS HEARING PROCESS FURTHERMORE ANY POTENTIAL CLASS MEMBER WILL HAVE THE OPPORTUNITY TO OPT OUT OF THE BENEFITS OF CLASS MEMBERSHIP AS A RESULT OF THE NOTICE PROCEDURE DESIGNED TO INFORM MEMBERS OF THEIR RIGHTS IF CLASS MEMBERS ELECT TO WITHDRAW FROM THE CLASS THEY WILL RETURN TO THE TRADITIONAL TORT SYSTEM TO PURSUE THEIR CLAIMS BUT IN DOING SO THE OPTOUTS WILL FACE THE DELAYS AND UNCERTAINTIES THAT HAVE MADE THE CURRENT SYSTEM SO UNFAIR OUR COMPANY'S EXPERIENCE IS ONE OF ATTEMPTING TO FIND AN EQUITABLE SOLUTION TO ASBESTOS LITIGATION ISSUES WE ARE PLEASED TO BE PART OF A REALISTIC PLAN FOR MANAGING AND COMPENSATING FUTURE CLAIMS IN A PROMPT FAIR MANNER 9305210091 930521 BUSINESS BRIEF NAVISTAR INTERNATIONAL INC PROFIT OF 8 MILLION POSTED FOR FISCAL SECOND QUARTER NAVISTAR INTERNATIONAL INC SAID IT EARNED 8 MILLION OR ONE CENT A SHARE IN ITS SECOND QUARTER ENDED APRIL 30 COMPARED WITH A YEAREARLIER LOSS OF 35 MILLION OR 17 CENTS A SHARE REFLECTING STRONGER DEMAND SALES ROSE 36 TO 124 BILLION FROM 913 MILLION THE CHICAGO TRUCK MAKER SAID IT HAD RETAIL DELIVERIES OF 20700 MEDIUM AND HEAVY TRUCKS AND SCHOOL BUS CHASSIS IN THE QUARTER UP 40 FROM A YEAR EARLIER SHIPMENTS OF MIDRANGE DIESEL ENGINES TO ORIGINAL EQUIPMENT MANUFACTURERS ROSE 19 AND SALES OF REPLACEMENT PARTS IMPROVED 12 FROM LAST YEAR'S LEVELS NAVISTAR SAID ORDERS FOR HEAVY TRUCKS REMAIN STRONG WHILE THE MARKET FOR MEDIUM TRUCKS IS IMPROVING AS WELL NAVISTAR COMMON STOCK WAS QUOTED AT 2875 UP 25 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9305210090 930521 MEDEVA'S PACT WITH US FIRM SIGNALS TREND MEDIUMSIZE DRUG MAKERS SHOW INCREASED INTEREST IN TRANSATLANTIC TIES BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL EARLIER THIS WEEK BRITISH DRUG MAKER MEDEVA PLC UNVEILED A DEVELOPMENT AND MARKETING LINK WITH FLEDGLING US HEALTHCARE COMPANY MATRIX PHARMACEUTICAL INC WHILE THE ACCORD IS SMALL JUST 22 MILLION IT UNDERSCORES GROWING INTEREST IN TRANSATLANTIC COOPERATION AMONG MEDIUMSIZE PHARMACEUTICAL COMPANIES MATRIX GETS A CHANCE TO EXPLOIT THE POTENTIAL OF NEW DRUGS OVERSEAS AT AN EARLY STAGE OF DEVELOPMENT WHEN THE COMPANY WOULDN'T TAKE THE FINANCIAL RISK OF DOING SO ON ITS OWN MOREOVER SMALL US COMPANIES SUCH AS MATRIX BASED IN MENLO PARK CALIF LIKELY WIELD MORE BARGAINING CLOUT WITH A MEDIUMSIZE EUROPEAN COMPANY LIKE MEDEVA THAN BETTERKNOWN DRUG COMPANIES INDUSTRY ANALYSTS SAID THE DEAL WILL GIVE MEDEVA THE EUROPEAN RIGHTS TO AN IMPLANT TECHNIQUE UNDER DEVELOPMENT TO TREAT CERTAIN FORMS OF SKIN CANCER UNDER THE PACT THE COMPANIES ARE TO PROMOTE IN THE US MATRIX'S IMPLANT PRODUCT STILL KNOWN ONLY BY THE NUMBER MPI 5003 IN EUROPE MEDEVA RECEIVES EXCLUSIVE MARKETING RIGHTS AND WILL CONDUCT CLINICAL TRIALS AND OTHER DEVELOPMENT AS WELL AS REGULATORY SUBMISSIONS OF THE MATRIX MEDICINE MEDEVA AGREED TO PAY AS MUCH AS 12 MILLION IN CONNECTION WITH DEVELOPMENT OF MPI 5003 AND IN A SEPARATE TWOSTEP TRANSACTION THE BRITISH CONCERN WILL PURCHASE 10 MILLION IN NEW MATRIX COMMON STOCK REPRESENTING A STAKE OF ROUGHLY 6 MEDEVA ALSO PLEDGED NOT TO RAISE ITS STAKE FURTHER ACCORDING TO ITS CHAIRMAN BERNARD TAYLOR MATRIX MR TAYLOR EXPLAINED HAS THINGS THEY WISH TO PURSUE WITH OTHER PARTIES AND UNLESS OUR INTEREST IS CLEAR FOR EVERYBODY TO SEE SUCH NEGOTIATIONS WOULD BECOME MUCH MORE DIFFICULT THE MPI 5003 IMPLANT IS DESIGNED TO MINIMIZE TOXIC SIDE EFFECTS OF A POTENT CANCER MEDICINE CALLED FLUOROURACIL THE INNOVATIVE TWIST COMES FROM AN ADDITIONAL SUBSTANCE INJECTED INTO CANCEROUS SKIN TISSUE ALONG WITH FLUOROURACIL SHUTTING OFF THE BLOOD SUPPLY TO SURROUNDING CELLS IN WHAT WHAT MR TAYLOR DESCRIBED AS A SORT OF CHEMICAL TOURNIQUET THE INPLANT SYSTEM COULD ALSO BE USED WITH OTHER CANCERFIGHTING AGENTS AND THE COMPANIES SAID THEY MAY CODEVELOP ADDITIONAL PRODUCTS BUT DECLINED TO ELABORATE ON FUTURE PLANS CLINICAL TRIALS ARE MOST ADVANCED TESTING MPI 5003 AGAINST GENITAL WARTS WHICH IF LEFT UNTREATED CAN LEAD TO CERVICAL CANCER AND BASAL SKIN CARCINOMA A CANCER CAUSED BY PROLONGED EXPOSURE TO THE SUN MATRIX EXPECTS TO BEGIN PHASE THREE CLINICAL TRIALS IN GENITAL WARTS TREATMENT LATER THIS MONTH A PHASE THREE TRIAL IS DESIGNED TO SEE IF A DRUG IS BETTER THAN EXISTING THERAPIES OR BETTER THAN A PLACEBO MR TAYLOR SAID MEDEVA EXPECTS TO COMMENCE CLINICAL TRIALS OF MPI 5003 IN EUROPE EARLY NEXT YEAR THE MEDEVA CHAIRMAN SUGGESTED THE FIRST NEW DRUG APPLICATION FOR MPI 5003 COULD BE FILED WITH EUROPEAN REGULATORS BY MID1995 MEDEVA HAS GROWN RAPIDLY THROUGH A STRATEGY OF SNAPPING UP SMALLER RIVALS AND FINDING NEW WAYS OF MARKETING DOZENS OF AGING USUALLY OFFPATENT MEDICINES DUMPED BY MAJOR DRUG MAKERS THE COMPANY HAS MANAGED TO REVIVE SALES OF SUCH MEDICINES BY DEVISING NEW DELIVERY METHODS OR MORE CONVENIENT DOSES THE MATRIX LINK EXEMPLIFIES THE NEXT STAGE OF MR TAYLOR'S STRATEGIC BLUEPRINT BUYING DRUGS THAT HAVE REACHED AN ADVANCED STAGE OF DEVELOPMENT WHERE RISKS OF FAILURE ARE VASTLY LOWER THAN STARTING FROM SCRATCH LIKE MAJOR DRUG MAKERS WITH BASIC RESEARCH AS RECENTLY AS LAST MONTH MEDEVA SECURED THE NUCLEUS OF A CANCERFIGHTING DIVISION BY ACQUIRING RIBOSEPHARM A SMALL GERMAN DRUG COMPANY MR TAYLOR EXPECTS THE SKYROCKETING COST OF DEVELOPING NEW DRUGS TO PROMPT MANY MORE DRUG COMPANIES TO SCRAP THE PURE DISCOVERY END OF RESEARCH THE MEDIUMSIZE COMPANIES OF THIS WORLD SIMPLY AREN'T BIG ENOUGH TO BE IN THE RESEARCH AND DEVELOPMENT GAME ALONG WITH GIANTS LIKE GLAXO HOLDINGS PLC OR MERCK & CO HE SAYS THEY'LL HAVE TO CONTEMPLATE BUYING PROJECTS THAT ARE PARTWAY DOWN THE DEVELOPMENT TRACK RATHER THAN TRYING TO DO IT ALL THEMSELVES LIKE MANY OF THEM TRY STILL STRUGGLING TO DO TODAY 9305210089 930521 BUSINESS BRIEF PRATT & WHITNEY UNITED TECHNOLOGIES UNIT GETS CONTRACT FROM AIRLINE PRATT & WHITNEY THE AIRCRAFT ENGINE UNIT OF HARTFORD CONNBASED UNITED TECHNOLOGIES CORP SAID CHINA NORTHERN AIRLINES SELECTED ITS ENGINES TO POWER UP TO 15 AIRBUS A300600R AIRCRAFT THE PURCHASE COULD HAVE A VALUE OF NEARLY 400 MILLION INCLUDING 12 ENGINES AND FIVE SPARES WORTH 153 MILLION AND OPTIONS FOR UP TO 18 MORE ENGINES AND FIVE SPARES DELIVERIES WILL BEGIN IN MID1994 AND CONTINUE THROUGH THE YEAR 2000 CHINA NORTHERN BASED IN SHENYANG SERVES DOMESTIC ROUTES THROUGHOUT CHINA AND OFFERS REGIONAL SERVICE IN ASIA THIS IS ITS FIRST PURCHASE OF WIDEBODY AIRCRAFT 9305210088 930521 JAPAN PORTRAYS TRADE SURPLUS AS SMALL ISSUE MITI PAPER SAYS IMBALANCE ISN'T REALLY VERY BIG AND WILL CORRECT ITSELF BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AS CLINTON ADMINISTRATION OFFICIALS HUDDLE THIS WEEK TO SHAPE THEIR NEW TRADE POLICY THE JAPANESE ARE BUSY SENDING OUT THIS PLEA GO EASY ON US WE'RE NOT NEARLY AS TOUGH AS YOU THINK THE LATEST SPIN DOCTORING FROM JAPAN COMES IN THE FORM OF THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY'S ANNUAL WHITE PAPER PUBLISHED TODAY IT IS AN ATTEMPT TO TURN UPSIDE DOWN THE CONVENTIONAL WISDOM ABOUT JAPAN'S TRADE SUR PLUS THE SURPLUS REALLY ISN'T SO BIG AND IT'S BOUND TO DISAPPEAR FROM NATURAL CAUSES SOON SAYS THE REPORT LONG ONE OF THE CHIEF ORCHESTRATORS OF JAPAN'S MANAGED ECONOMY MITI NOW DECLARES ITSELF A CHAMPION OF FREE TRADE A WEEK AGO MITI ISSUED A SIMILARLY EYECATCHING DOCUMENT JAPAN IS ACCUSED BY VIRTUALLY EVERY MAJOR INDUSTRIALIZED NATION OF USING UNFAIR TRADE PRACTICES OF ONE SORT OR ANOTHER MITI TURNED THE TABLES ON ITS ATTACKERS SCRUTINIZING WHAT IT CALLED THE MANY UNFAIR TRADE PRACTICES OF THE US AND OTHER NATIONS MANY INDEPENDENT ECONOMISTS SAY MITI MAKES A NUMBER OF COMPELLING POINTS IN ITS ARGUMENTS BUT THE JAPANESE FACE AN UPHILL BATTLE CONVINCING AMERICANS THAT THE SURPLUS ISN'T A PROBLEM OR THAT JAPAN CAN'T DO ANYTHING ABOUT IT THIS WEEK THE US GOVERNMENT REPORTED THAT THE TRADE DEFICIT IN MARCH SURPASSED 10 BILLION AND MORE THAN HALF OF THAT WAS WITH JAPAN THE SURPRISINGLY BIG GAP THE WIDEST IN NEARLY FOUR YEARS FORCED ECONOMISTS TO CUT ESTIMATES FOR US ECONOMIC GROWTH THE CLINTON ADMINISTRATION'S NEW POLICY WHICH IS EXPECTED TO BE PRESENTED DURING TALKS IN TOKYO NEXT WEEK WILL INCLUDE DEMANDS THAT MITI HELP BRING DOWN THE TRADE IMBALANCE MITI'S PROFESSIONS OF HORROR AT TINKERING WITH THE FREE MARKET WILL ALSO LIKELY FALL ON DEAF EARS FOR MITI CONTINUES TO HAVE A STRONG HAND IN SHAPING JAPAN'S INDUSTRIAL POLICY THIS MONTH THE MINISTRY STARTED COLLECTING PRICE DATA FROM JAPAN'S MACHINETOOL MAKERS A MOVE WIDELY INTERPRETED AS AN ATTEMPT TO DISCOURAGE THE STRUGGLING INDUSTRY FROM INFLAMING TRADE TENSIONS BY CUTTING EXPORT PRICES EVEN IF ORDERLY EXPORTS CAN BE MAINTAINED THROUGH SUCH EXCESSIVE INTERVEN TION THE NIHON KEIZAI SHIMBUN COM PLAINED IN AN EDITORIAL EARLIER THIS WEEK THAT WOULD CONSTITUTE THE VERY MANAGED TRADE THAT JAPAN OPPOSES THE MITI WHITE PAPER SETS OUT JAPAN'S THINKING ON MANY OF THESE STICKY MATTERS FIRST IT ARGUES THAT INTERNATIONALLY ACCEPTED TRADE STATISTICS OVERSTATE JAPAN'S SURPLUS BECAUSE THE NUMBERS INCLUDE GOODS BUT NOT SERVICES SUCH AS PATENTS TRAVEL AND CONSULTING THE REPORT SAYS THAT TRADE NUMBERS THAT INCLUDE SERVICES MAY PROVIDE A BETTER REFLECTION OF ECONOMIC REALITY MOST NOTABLY THAT JAPAN'S SURPLUS IS REALLY ONLY TWOTHIRDS WHAT IS REGULARLY REPORTED WHILE THE US'S TOTAL TRADE DEFICIT WITH THE WORLD IS LESS THAN HALF WHAT'S NORMALLY REPORTED MITI ALSO SAYS THAT HALF THE SURGE IN JAPAN'S TRADE SURPLUS BETWEEN 1990 AND 1992 HAD NOTHING TO DO WITH JAPANESE ECONOMIC STRENGTH BUT CAME FROM TWO FACTORS A DECLINE IN THE PRICE OF OIL IMPORTS AND THE RISING VALUE OF THE YEN AGAINST THE DOLLAR WHICH BOOSTS THE PRICE OF JAPANESE EXPORTS IN DOLLAR TERMS OTHER FUNDAMENTAL ECONOMIC CAUSES OF JAPAN'S TRADE SURPLUS MITI CONTINUES WILL DISAPPEAR OVER TIME IT PRESENTS STATISTICS THAT SHOW JAPAN'S ECONOMY IS BECOMING MORE IMPORTFRIENDLY BETWEEN 1982 AND 1992 IMPORTS GREW 13 FOR EVERY 1 INCREASE IN OVERALL ECONOMIC GROWTH BETWEEN 1974 AND 1984 IMPORTS GREW ONLY 06 FOR EVERY 1 INCREASE IN GROWTH MANY ECONOMISTS SAY THAT UNDERLYING MACROECONOMIC FACTORS MAINLY JAPAN'S HIGH SAVINGS RATE AND AMERICA'S LOW SAVINGS RATE CREATE THE TRADE IMBALANCE MITI SAYS THAT WITH JAPAN'S SOCIETY AGING AND AMERICAN BABYBOOMERS SETTLING DOWN AND HAVING FAMILIES THOSE TRENDS WILL REVERSE THE REPORT ALSO SAYS THAT MITI SEES JAPANESE COMPETITIVENESS WANING IN LABOR PRODUCTIVITY AND THAT JAPANESE FIRMS WILL BE UNDER INCREASING PRESSURE TO RAISE DIVIDEND PAYMENTS IN ORDER TO ATTRACT SUFFICIENT CAPITAL IT ADDS THAT MITI BELIEVES THE MARKETS FOR MANY JAPANESE GOODS WILL SOON REACH SATURATION AND THE STRATEGY OF PURSUING MARKET SHARE ABOVE ALL ELSE A TRADITIONAL JAPANESE CORPORATE STRATEGY WILL BECOME OBSOLETE IN FACT ONE OF THE AUTHORS OF THE REPORT DECLARES IN AN INTERVIEW THAT EVENTUALLY IT'S MOST LIKELY THAT WE WILL HAVE A TRADE DEFICIT RATHER THAN A SURPLUS BUT HE ACKNOWLEDGES THAT OVER THE NEXT TWO OR THREE YEARS AT LEAST JAPAN'S SURPLUS WILL CONTINUE TO SWELL I'D SAY IN FIVE TO 10 YEARS WE'LL LIKELY SEE A REDUCTION HE ADDS 9305210087 930521 LEISURE & ARTS ON SPORTS WINNING WOMEN FROM ACROSS THE POND' BY FREDERICK C KLEIN A FUNNY THING HAPPENED TO THE LADIES PROFESSIONAL GOLF ASSOCIATION TOUR IN ITS QUEST FOR A LARGER PLACE IN THE SUN ITS BEST AMERICAN PLAYERS JOURNEYED TO SCOTLAND LAST FALL FOR AN INTERNATIONAL TEAM COMPETITION AND WERE BEATEN TROUNCED ACTUALLY AND EVER SINCE EVERYBODY'S BEEN SAYING WHAT A WONDERFUL THING THAT WAS THE COMPETITION WAS THE SOLHEIM CUP WHICH EMULATED THE MEN'S MUCH OLDER RYDER CUP BY PITTING THE BEST WOMEN GOLF PROS FROM THE US AGAINST THOSE OF EUROPE LIKE THE RYDER CUP NOBODY PAID MUCH ATTENTION TO THE SOLHEIM CUP WHEN THE YANKS WON AS THEY DID IN 1990 WHEN IT FIRST WAS CONTESTED BUT WHEN THE EUROPEANS SURPRISED ALL AND SUNDRY BY WINNING THE SECOND EDITION LAST OCTOBER AT THE DALMAHOY COURSE NEAR EDINBURGH SCOTLAND WITH A TEAM THAT INCLUDED SIX REGULAR LPGA TOURISTS THE WOMEN'S GOLF WORLD WAS TURNED UPSIDE DOWN FIRST CAME A GUSH OF PUBLICITY SAYING THAT HEY THE GALS' GAME MIGHT HAVE AN HONESTTOGOODNESS INTERNATIONAL DIMENSION AFTER ALL ONE THAT COULD PAY OFF IN THE SORT OF USVSTHEM PIZAZZ THAT HAS BOOSTED OTHER SPORTS THEN CAME THE CURRENT YEAR'S TOUR IN WHICH FOREIGN PLAYERS HAVE CAPTURED FIVE OF THE 10 EVENTS COMPLETED SO FAR IT'S THE BEST AGAINST THE BEST EVERY WEEK OUT HERE GUSHES HELEN ALFREDSSON THE 28YEAROLD SWEDE WHO WON ONE OF THOSE FIVE THE NABISCO DINAH SHORE IN MARCH WE'RE ABOUT AS CLOSE TO AN ONGOING OLYMPICS AS YOU CAN GET TO BE SURE WOMEN'S PROFESSIONAL GOLF IN THIS LAND LONG HAS HAD A STRONG INTERNATIONAL TINGE JAN STEPHENSON OF AUSTRALIA AND AYAKO OKAMOTO OF JAPAN ARE WELLESTABLISHED LPGA STARS ENGLAND'S LAURA DAVIES WON THE 1987 US WOMEN'S OPEN AND LISELOTTE NEUMANN OF SWEDEN WON THE 1988 EVENT THE TOUR MAKES TWO STOPS IN JAPAN AND ONE OF ITS MAJORS THE DU MAURIER CLASSIC IS HELD ANNUALLY IN CANADA BUT FOR THE DEGREE OF FOREIGN SUCCESS NOTHING MATCHES WHAT'S BEEN HAPPENING OF LATE AND THE LIKES ALFREDSSON TRISH JOHNSON OF ENGLAND AND FLORENCE DESCAMPE OF BELGIUM HAVE BEEN IN THE FOREFRONT ALONG WITH THE ABOVEMENTIONED VETERANS ALFREDSSON IS THE TOUR'S LEADING MONEY WINNER THIS TERM WITH EARNINGS OF 209030 JOHNSON HAS WON TWO TOURNAMENTS IN LAS VEGAS AND ATLANTA AND IS THIRD ON THE MONEY LIST DESCAMPE IS WINLESS IN 1993 BUT WON ONCE LAST YEAR ON HER WAY TO BEING VOTED LPGA ROOKIE OF THE YEAR BY GOLF DIGEST MAGAZINE AT AGE 24 SHE MAY SURPASS THEM ALL SOME DAY THE THREE INTERVIEWED AT LAST WEEK'S MCDONALD'S CLASSIC AT DUPONT COUNTRY CLUB HERE WERE ON THE EUROPEAN TEAM THAT AMBUSHED THE AMERICANS AT DALMAHOY BY A ONESIDED SCORE OF 11 1/2 TO 6 1/2 AND ALL AGREE THAT THE EXPERIENCE WAS PIVOTAL IT WAS GOOD FOR THE CONFIDENCE OF ALL OF US ESPECIALLY ME I THINK SAYS THE 27YEAROLD JOHNSON WHO'D BEEN WINLESS IN FIVE US SEASONS PRIOR TO THE EVENT EVEN IF SOME OF US HAD WON IN THE US BEFORE WE HAD THIS IMAGE OF THE BEST AMERICANS BEING ABOVE US CONFESSES DESCAMPE WE DON'T FEEL THAT WAY NOW THIS IS NOT TO SAY THAT THE THREE WEREN'T PRETTY GOOD BALL STRIKERS TO BEGIN WITH EACH STANDS 5FOOT10 AND CAN GET OFF THE TEE SMARTLY A CROWDPLEASING ASSET FOR GOLFERS OF EITHER SEX DESCAMPE AND ALFREDSSON RANK AMONG THE LPGA'S LONGEST HITTERS AND EACH IS A PRODUCT OF NATIONAL SYSTEMS THAT IDENTIFY AND NURTURE YOUNG PLAYERS YOUTHDEVELOPMENT PROGRAMS WERE ESPECIALLY IMPORTANT TO ALFREDSSON AND DESCAMPE WHO DON'T HAIL FROM LANDS LIKE JOHNSON'S ENGLAND WHERE GOLFING OPPORTUNITIES ARE PLENTIFUL NEITHER TOOK UP THE GAME UNTIL THE RELATIVELY LATE AGE OF 13 DESCAMPE MAINLY PLAYED TENNIS BEFORE THAT ALFREDSSON SAYS SHE FOOLED AROUND WITH LOTS OF SPORTS AND MIGHT NEVER HAVE TAKEN GOLF SERIOUSLY IF IT WEREN'T FOR THE ATTENTIONS OF OFFICIALS AND FELLOW PLAYERS IN SWEDEN WE HAVE SO FEW GOOD PLAYERS AT HOME THAT THEY ALL SHOW UP FOR EVERY TOURNAMENT SHE SAYS EVERYONE PITCHES IN TO HELP ANYBODY WHO SHOWS PROMISE ALFREDSSON'S ROAD TO SPORTS RICHES WAS CIRCUITOUS AFTER A BRIEF TURN AS A FASHION MODEL THAT WAS SEVERAL YEARS AND 20 POUNDS AGO SHE SAYS SHE PUT IN FOUR YEARS AT US INTERNATIONAL UNIVERSITY IN SAN DIEGO WHERE SHE PLAYED ON THE GOLF TEAM AND EARNED A BUSINESS DEGREE SHE DIDN'T TURN PRO IN EUROPE UNTIL AGE 24 SHE CREDITS HER EMERGENCE AS A TOP PLAYER CROWNED BY HER VICTORY IN THE DINAH SHORE AN LPGA MAJOR TO A DECISION TO EXPRESS HER TRUE NATURE ON THE LINKS SHE EXPLAINS I HAVE A TEMPER AND PEOPLE SAID I HAD TO CONTROL IT TO PLAY WELL SO I'D TAKE A BOGEY AND SAY OK' AND ANOTHER BOGEY AND SAY OK' AGAIN PRETTY SOON I'D BE 10 OVER PAR NOW I TAKE A BOGEY AND SAY NOT OK' I DO BETTER THIS WAY DESCAMPE PLAYED TENNIS UNTIL CONFRONTED WITH THE NECESSITY OF DROPPING OUT OF HIGH SCHOOL TO CONTINUE IMPROVING SHE OPTED TO STAY IN SCHOOL AND PLAY GOLF A CHOICE MADE EASIER BY THE FACT THAT HER PARENTS HAD TURNED SOME PASTURE LAND NEXT TO THEIR HOME OUTSIDE OF BRUSSELS INTO A THREEHOLE PUBLIC GOLF COURSE IT'S 18 HOLES NOW AND SHE'S THE CLUB PRO ALTHOUGH SHE NOTES THAT SHE TAKES MANY MORE LESSONS FROM DAVID LEADBETTER THE ORLANDO FLABASED GURU THAN SHE GIVES THE EASYSMILING JOHNSON WAS A TEENAGE CHAMPION IN ENGLAND UNLIKE ALFREDSSON AND DESCAMPE SHE STILL SPENDS HALF OF HER TIME PLAYING ON THE LESS LUCRATIVE EUROPEAN WOMEN'S TOUR SHE ADMITS THAT THE BACK AND FORTH TRAVEL THAT SPLIT ENTAILS PROBABLY HAS HURT HER CHANCES ON BOTH CONTINENTS BUT SAYS THAT AFTER FIVE OR SIX WEEKS IN THE US SHE GETS HOMESICK FOR UH HOME WHICH IS LONDON AND FOR REAL SPORTS LIKE CRICKET AND FOOTBALL THAT IS SOCCER BUT WHILE SHE'S BEEN A WINNER IN EUROPE FOR SEVERAL YEARS TOPPING THE WOMEN'S MONEY LIST THERE IN 1990 SHE ACKNOWLEDGES THAT HER BREAKTHROUGH VICTORIES IN THIS COUNTRY HAVE BEEN ESPECIALLY SWEET TO BE RECOGNIZED TOPCLASS IN GOLF YOU HAVE TO WIN IN THE US SAYS SHE SHE SMILES AND ADDS MORE OF US FROM ACROSS THE POND SEEM TO BE DOING THAT LATELY HAVEN'T WE 9305210086 930521 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 304 30 TO 59 DAYS 306 60 TO 89 DAYS 307 90 TO 149 DAYS 313 150 TO 179 DAYS 315 180 TO 229 DAYS 320 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 309 30 DAYS 311 60 DAYS 313 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 263 TWO MONTHS 265 THREE MONTHS 274 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 303 ONE MONTH 310 THREE MONTHS 318 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 301 60 DAYS 302 90 DAYS 304 120 DAYS 307 150 DAYS 307 180 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 5/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY MAY 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 730 60 DAYS 739 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 727 60 DAYS 737 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 267 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9305210085 930521 INTERNATIONAL VENEZUELA COURT SAYS PRESIDENT MUST STAND TRIAL RULING EFFECTIVELY OUSTS PEREZ TO FACE CHARGES THAT HE MISUSED FUNDS BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL VENEZUELAN PRESIDENT CARLOS ANDRES PEREZ WHO SURVIVED TWO COUP ATTEMPTS LAST YEAR WAS EFFECTIVELY FORCED OUT OF OFFICE YESTERDAY BY THE COUNTRY'S SUPREME COURT WHICH RULED HE MUST STAND TRIAL FOR ALLEGED MISUSE OF 172 MILLION IN SECRET GOVERNMENT FUNDS THE SENATE IS EXPECTED TO RATIFY THE COURT'S DECISION TODAY UNDER THE COUNTRY'S CONSTITUTION SENATE PRESIDENT OCTAVIO LEPAGE A MEMBER OF THE RULING ACCION DEMOCRATICA PARTY WOULD TAKE OVER THE PRESIDENT'S DUTIES UNTIL AN ACTING PRESIDENT IS CHOSEN TO SERVE OUT MR PEREZ'S TERM WHICH ENDS IN FEBRUARY JUST BEFORE THE DECISION WAS HANDED DOWN THE CABINET RESIGNED EN MASSE IN A RADIO ADDRESS YESTERDAY MORNING BEFORE THE COURT ACTED THE 70YEAROLD PRESIDENT SAID THE CHARGES WERE A POLITICALLY MOTIVATED ATTEMPT TO DESTROY HIM THE PRESIDENT VIEWS THE COURT'S FINDING AS ONE MORE ACCIDENT IN A LONG POLITICAL LIFE SAID ANGEL ZAMBRANO THE MINISTER OF COMMUNICATIONS HE IS CONVINCED HE ISN'T GUILTY OF ANYTHING AND THE CHARGES ARE TOTALLY UNFOUNDED MR ZAMBRANO ALSO SAID MR PEREZ WOULDN'T RESIGN IN CARACAS WHICH PENDING THE COURT DECISION HAD BECOME AN ARMED CAMP WATCHED BY THOUSANDS OF POLICE AND NATIONAL GUARDSMEN TENSION GAVE WAY IN SOME PLACES TO MASS JOY AS THRONGS OF PEOPLE POURED INTO THE STREETS WAVING TRICOLOR VENEZUELAN FLAGS SETTING OFF FIRECRACKERS BANGING POTS AND BLOWING WHISTLES IT'S A CARNIVAL OUTSIDE MY OFFICE SAID BUSINESSMAN ANDRES DUARTE IT'S A GREAT ADVANCE FOR VENEZUELAN DEMOCRACY SAID RAMON ESCOBAR SALOM THE INDEPENDENT PROSECUTOR WHO SPEARHEADED THE INVESTIGATION IT SHOWS THERE ARE LIMITS TO PRESIDENTIAL AUTHORITY BUT VENEZUELAN BUSINESS EXECUTIVES AND ANALYSTS EXPRESSED WORRY THAT IF THE SENATE PRESIDENT MR LEPAGE REMAINS AS PRESIDENT MR PEREZ'S PROGRAM OF ECONOMIC REFORMS COULD BE DERAILED WHAT WE NEED IS A CARETAKER PRESIDENT WHO WILL TAKE US TO THE ELECTIONS IN GOOD SHAPE SAID ROBERT BOTTOME A FINANCIAL ANALYST IN CARACAS RAMON J VELASQUEZ A RESPECTED HISTORIAN AND SENATOR IS CONSIDERED THE FRONTRUNNER FOR CARETAKER PRESIDENT SOME ANALYSTS SAID THE CASE AGAINST MR PEREZ IS WEAK AND THAT IF MR PEREZ IS CLEARED IN THE EXPECTED TRIAL HE WILL EMERGE A HERO THERE IS NO SMOKING GUN THERE ISN'T EVEN A BODY SAID MR BOTTOME EVERYBODY IS CONVINCED THAT CARLOS ANDRES PEREZ IS A CROOK BUT THERE IS NO EVIDENCE PRESENTED THAT HE STOLE MONEY FIRST ELECTED IN 1974 AS A LEFTOFCENTER POPULIST MR PEREZ NATIONALIZED THE COUNTRY'S OIL INDUSTRY AND THEN USED THE OIL REVENUE TO SUBSIDIZE EVERYTHING FROM FOOD TO INTEREST RATES RETURNED TO OFFICE IN 1988 IN A LANDSLIDE ON THE MEMORY OF THE FAT YEARS THAT MARKED HIS FIRST PRESIDENCY MR PEREZ WAS FORCED BY VENEZUELA'S OIL AND DEBT CRISIS TO IMPOSE A HARSH AUSTERITY PROGRAM REVERSE HIS FORMER POLICIES AND OPEN VENEZUELA'S CLOISTERED ECONOMY WHILE THE COUNTRY'S ECONOMY BOOMED POSTING 73 GROWTH LAST YEAR LIVING CONDITIONS PLUMMETED FOR THE GREAT MAJORITY OF VENEZUELANS WHO SUDDENLY HAD TO PAY SHARPLY HIGHER PRICES FOR FORMERLY SUBSIDIZED PRODUCTS MR PEREZ'S POPULARITY ALSO PLUMMETED 9305210083 930521 A MYSTERY WORTHY OF POE WHY ARE GOLD BUGS FEVERISH EXCITEMENT IS BACK RENEWING THE METAL'S PRECIOUSNESS MR PHIZACKERLEY CALL MOM BY WARREN GETLER AND ANITA RAGHAVAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE GOLD BUGS ARE SWARMING JUST ASK JOHN PHIZACKERLEY LIKE OTHERS WHO HAVE BEEN TOILING IN A MORIBUND METALS MARKET FOR MORE THAN A DECADE THE GOLD ANALYST AT SHEARSON LEHMAN BROTHERS IN NEW YORK NOW COMPLAINS THAT HE HAS BEEN SO BUSY ANSWERING QUESTIONS ABOUT GOLD THAT HE HASN'T HAD TIME TO PHONE HIS MOTHER I LEFT MY DESK FOR ABOUT 45 MINUTES AND MY VOICE MAIL HAD 60 CALLS ABOUT GOLD HE SAYS GOLD FEVER IS IN THE AIR AND MR PHIZACKERLEY SAYS HIS MOM IS NO 50 ON HIS LIST OF CALLS TO MAKE TO DISCUSS BULLION BUYING LONG SCORNED BY MORE SOPHISTICATED INVESTORS AS A REMNANT OF THE FINANCIAL STONE AGE GOLD BUGS ARE GAINING NEW RESPECT ABLE TO ENDURE PROLONGED DROUGHTS WITH NEITHER INTEREST PAYMENTS NOR CAPITAL GAINS THESE OBSESSED INVESTORS ARE RIDING THE CREST OF A POWERFUL ALTHOUGH STARTLING RALLY IN GOLD PRICES SINCE FALLING TO 327 AN OUNCE LAST MARCH THE PRICE OF GOLD HAS ROCKETED 15 TO A RECENT HIGH OF 376 AN OUNCE YESTERDAY GOLD FOR JUNE DELIVERY ROSE 50 CENTS TO 37470 TAKING THEIR CUE FROM SOME PROMINENT FINANCIERS GOLD BUYERS ARE MULTIPLYING LIKE MAD AND THE BUGS WILL LATCH ONTO ANYONE WITH KNOWLEDGE OF GOLD RHONA O'CONNELL A GOLD ANALYST AT WILLIAMS DE BROE IN LONDON IS BESIEGED NIGHTLY AT HER LOCAL PUB IT'S THE FIRST TIME SINCE I HAVE WORKED AT WILLIAMS DE BROE THAT PEOPLE OUTSIDE HAVE TALKED TO ME ABOUT WHAT I DO FOR A LIVING SHE SAYS AND THE BUGS ARE GOBBLING UP GOLD WHEREVER THEY CAN FIND IT INVESTMENTS IN GOLD MUTUAL FUNDS HAVE SOARED SO FAR THIS MONTH THE US MINT HAS SOLD 36500 AMERICAN EAGLE ONEOUNCE GOLD COINS THREE TIMES THE NUMBER SOLD A YEAR AGO BUDDING BUGS CAN USE THE MINT'S TOLLFREE HOTLINE TO GET THE NAMES OF DEALERS HANDLING THE COINS TYPICAL OF THE RECENT CALLERS WAS AN ELDERLY WOMAN FROM NEBRASKA WHO WANTED TO INVEST 10000 IN GOLD COINS THAT IS 27 ONEOUNCE COINS AT 370 AN OUNCE SHE HAD NEVER INVESTED IN GOLD BEFORE BUT SHE KEPT READING ABOUT IT IN THE NEWSPAPERS AND SEEING IT ON THE BUSINESS CHANNELS SAYS JACK ZERBIN THE MINT'S DIRECTOR OF THE GOLDCOIN PROGRAM GOLD BUGS MAY NOT BE THE MOST SOPHISTICATED INVESTORS BUT THEY ARE A TOUGH LOT ABLE TO WITHSTAND TERRIBLE BEATINGS ONLY TO SPRING BACK WITH RENEWED VIGOR HARRY SHULTZ A SEMIRETIRED DEVELOPER IN WESTLAKE CALIF LOST ABOUT 70000 IN GOLD INVESTMENTS MORE THAN A DECADE AGO AFTER GOLD PLUNGED FROM ITS ALLTIME HIGH OF 850 AN OUNCE IN 1980 AFTER SPENDING A DECADE DABBLING IN CONVENTIONAL INVESTMENTS LIKE STOCKS AND BONDS HE WAS ANTEING UP FOR MORE GOLD EARLIER THIS WEEK IN AN EFFORT TO RECOUP THOSE LONGAGO LOSSES BETTING THAT GOLD WILL HIT 500 AN OUNCE MR SHULTZ CLAIMS HE IS IN FOR THE LONG HAUL I'M WILLING TO HOLD ON FOR SIX MONTHS TO A YEAR HE SAYS DR DAVID LIFSCHUTZ A MANHATTAN PSYCHIATRIST WITH A NUMBER OF COMMODITY TRADERS AS PATIENTS THINKS GOLD BUGS SUFFER FROM AN UNREASONABLE OPTIMISM IT'S THE SECRET WISH OF SOMEBODY WHO THINKS HE CAN RISE ABOVE ALL THE DAILY DISAPPOINTMENTS AND FRUSTRATIONS AND EMERGE TRIUMPHANT HE SAYS CURIOUSLY ABSENT IS A SOLID EXPLANATION FOR THE EXPLOSIVE GROWTH OF GOLD BUGS AND THE SHARP RISE IN GOLD PRICES THEORIES ABOUND HOWEVER ONE OF THE FAVORITES IS THAT THE RISE IS A HARBINGER OF INFLATION SURE ENOUGH US INFLATION IS RUNNING AT AN ANNUAL RATE OF 43 SO FAR THIS YEAR COMPARED WITH JUST 29 LAST YEAR BUT THAT IS HARDLY IN A LEAGUE WITH THE DOUBLEDIGIT INFLATION THAT BOOSTED GOLD PRICES TO THE 1980 RECORD AND WITH MOST OF THE REST OF THE WORLD MIRED IN RECESSION A LOT OF EXPERTS DON'T BUY THE INFLATION THEORY AN ALTERNATIVE IS THE SUPPLYANDDEMAND THEORY PROPONENTS BELIEVE CHINESE JEWELRY MAKERS ARE PURCHASING VAST QUANTITIES OF THE GLITTERING METAL AND IT IS TRUE THAT THE BARGAINCONSCIOUS CHINESE WERE APPARENTLY BUYING GOLD WHEN IT WAS PRICED AT ABOUT 330 AN OUNCE BUT TRADERS IN ASIA NOW REPORT THAT SINCE THE PRICE HAS CLIMBED TO 370 DEMAND HAS FADED RAPIDLY WHAT'S MORE THE CHINESE DATA ARE RIFE WITH DUBIOUS ESTIMATES FOR SMUGGLED AMOUNTS INFLATION DOESN'T SEEM TO BE MUCH OF A PROBLEM IN THE US AND EUROPE RIGHT NOW SAYS EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE IN NEW YORK AND IT'S HARD TO SEE HOW GOLD KEEPS GOING UP WHEN THERE IS WEAK DEMAND FOR WIDELY USED INDUSTRIAL METALS LIKE COPPER GOLD BUGS TEND TO SHUN MAINSTREAM ECONOMICS THOUGH THEY PREFER MORE APOCALYPTIC EXPLANATIONS FOR GOLD'S RISING VALUE GOVERNMENT SPENDING IS OUT OF CONTROL THERE'S HYPERINFLATION IN RUSSIA AND IRAN AND THE WHOLE WORLD IS FLOATING IN A SEA OF PAPER ASSETS AND DEBT SAYS JAMES DINES A NEWSLETTER WRITER IN BELVEDERE CALIF AND LONGTIME GOLD BUG GOVERNMENTS WILL PRINT AS MUCH MONEY AS THEY WANT UNTIL THERE'S AN ECONOMIC CALAMITY HE SAYS THERE'S NOTHING MYSTICAL ABOUT IT IT'S JUST PLAIN MATH MR DINES WHO INSISTS GOLD WILL BE BACK TO 850 SAYS HIS PORTFOLIO OF PRECIOUSMETALS INVESTMENTS IS UP 50 THIS YEAR THE CHAOS THEORY OF GOLD INVESTING HAS OTHERWORLDLY DIMENSIONS TOO HENRY WEINGARTEN MANAGER OF THE 87 MILLION ASTROLOGERS' FUND IN NEW YORK STARTED BUYING GOLD HEAVILY IN FEBRUARY JUST BEFORE URANUS AND NEPTUNE APPEARED TO TOUCH ONE ANOTHER FOR THE FIRST TIME IN MORE THAN A CENTURY GOLD TENDS TO FARE WELL IN TIMES OF GREAT INSTABILITY AND ASTROLOGICALLY SPEAKING URANUS IN CONJUNCTION WITH NEPTUNE IS ASSOCIATED WITH TREMENDOUS CHAOS IT'S WHEN THE UNTHINKABLE BECOMES THINKABLE SAYS MR WEINGARTEN INTEREST RATES IN SWEDEN CLIMB TO 500 AND BILL CLINTON BECOMES PRESIDENT MR WEINGARTEN'S GOLD INVESTMENTS HAVE APPRECIATED 33 FOR HIS CLIENTS SO FAR THIS YEAR LARRY HEIM PUBLISHER OF THE HEIM INVESTMENT LETTER IN PORTLAND ORE AND SOMETHING OF A GOLD MEGABUG ISN'T IMPRESSED WITH THE LATEST GOLD RALLY HE CONTENDS IT SHOULD BE TRADING AT AROUND 800 TO 1000 AN OUNCE BUT THAT PRICES HAVE BEEN DEPRESSED BY HEAVY SALES OF GOLD LAST YEAR BY CENTRAL BANKS HE ALSO BLAMES THE MEDIA FOR IGNORING HIS OPINIONS NO ONE PRINTS WHAT I AM SAYING HE COMPLAINS IF YOU PRINTED MY VIEWS ON THE MONEY SUPPLY AND PEOPLE UNDERSTOOD HOW MUCH WAS OUTSTANDING YOU'D HAVE GOLD EXPLODE OVERNIGHT THE REAL REASON GOLD BUGS ARE COMING OUT OF THE WOODWORK THOUGH MAY BE TERMED THE LEMMING THEORY THE CURRENT RALLY TOOK OFF ON WORD THAT INVESTORS LIKE GEORGE SOROS AND SIR JAMES GOLDSMITH WERE PLACING BIG BETS ON GOLD BUGS LIKE COMPANY AND MANY FIGURE THERE ISN'T ANY BETTER COMPANY TO KEEP THAN MR SOROS AND SIR JAMES A LOT OF PEOPLE SAID IF IT'S GOOD FOR SOROS IT'S GOT TO BE GOOD FOR THE REST OF US' SAYS JOHN NADLER WHO MANAGES PRECIOUSMETALS PORTFOLIOS FOR BANKAMERICA CORP IN SAN FRANCISCO 9305210082 930521 DIVIDEND NEWS CATO CORP CATO CORP CHARLOTTE NC SET A 3FOR2 STOCK SPLIT AND AN INCREASE IN THE CASH DIVIDEND TO 375 CENTS A SHARE FROM TWO CENTS ADJUSTED FOR THE SPLIT THE DIVIDEND IS RISING TO 25 CENTS A SHARE FROM 134 CENTS THE SPECIALTY RETAILER SAID BOTH THE SPLIT AND THE DIVIDEND ARE PAYABLE JUNE 28 TO SHARES OF RECORD JUNE 7 9305210081 930521 MARKETING & MEDIA WEIRD 'WILD PALMS' SERIES LAYS A COCONUT FOR ABC NEW YORK ABC'S FIRST EVENT SERIES TURNED OUT TO BE A NONEVENT THE BIZARRE FOURPART SERIES WILD PALMS CONCLUDED WEDNESDAY FINISHING IN LAST PLACE AMONG THE THREE MAJOR BROADCAST NETWORKS ACCORDING TO NATIONAL HOUSEHOLD RATINGS COMPILED BY AC NIELSEN CO THE FINAL HOUR INSTALLMENT OF THE SHOW INSPIRED BY THE WEIRD COMIC STRIP IN DETAILS MAGAZINE WAS WATCHED BY 99 OF US HOMES WITH TELEVISION SETS LANDING BEHIND LAW AND ORDER ON GENERAL ELECTRIC CO'S NBC NETWORK AND A MOVIE ON CBS INC'S NETWORK THE MINISERIES SET IN THE YEAR 2007 AND INVOLVING CORRUPT POLITICIANS AND TELEVISION TECHNOLOGY GOT OFF TO A WEAK START ON SUNDAY ATTRACTING ONLY 123 ON MONDAY THAT DROPPED TO 97 WITH A TWOHOUR INSTALLMENT ON TUESDAY IT BUMPED UP TO 11 BUT NEVER REACHED THE HUGE NUMBERS CAPITAL CITIES/ABC INC WAS HOPING FOR 9305210080 930521 SENATOR PRODS GAO TO LIST NAFTA LOBBY'S SUPPORTERS WASHINGTON SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE CALLED ON THE GENERAL ACCOUNTING OFFICE TO TALLY THE MONEY SPENT BY MEXICO AND OTHERS TO PROMOTE THE NORTH AMERICAN FREE TRADE AGREEMENT A LEADING OPPONENT OF NAFTA MR RIEGLE CITED AN ARTICLE IN YESTERDAY'S WALL STREET JOURNAL THAT SAID MEXICO MIGHT SPEND AS MUCH AS 45 MILLION TO NEGOTIATE AND LOBBY FOR THE TRADE PACT I WANT TO KNOW WHICH US MEXICAN AND CANADIAN COMPANIES BUSINESS ASSOCIATIONS OR GOVERNMENT ENTITIES ARE LOBBYING TO PASS NAFTA THE MICHIGAN DEMOCRAT SAID AN AIDE TO MR RIEGLE DESCRIBED NAFTARELATED LOBBYING AS LOPSIDED IN FAVOR OF SUPPORTERS OF THE TRADE AGREEMENT THE SENATOR DIDN'T CALL FOR THE GAO TO CALCULATE SPENDING BY HIS ALLIES AT LABOR UNIONS ENVIRONMENTAL GROUPS AND OTHER ORGANIZATIONS THAT OPPOSE THE AGREEMENT HOWEVER THE AIDE ADDED THAT MR RIEGLE WOULDN'T OBJECT IF ANOTHER LAWMAKER ASKED FOR AN ACCOUNT OF LOBBYING BY ANTINAFTA FORCES 9305210079 930521 SQUEEZED BY WINE SLUMP GROUPE MOET SETS LAYOFFS REIMS FRANCE GROUPE MOET ET CHANDON THE WORLD'S LARGEST MAKER OF CHAMPAGNE SAID IT WILL LAY OFF AS MANY AS 230 WORKERS AMID AN INDUSTRYWIDE COLLAPSE IN SALES OF FRANCE'S BESTKNOWN WINES COMPANY PRESIDENT YVES BERNARD BLAMED THE LAYOFFS THE FIRST BY THE GROUP IN 50 YEARS ON A 20 DROP IN SALES FROM 1989 TO 1992 FROM 32 MILLION TO 26 MILLION THE CUTS WILL BE MADE OVER THE NEXT 18 MONTHS HE SAID THE TUMBLING SALES COME ON THE HEELS OF THREE BOOMING DECADES AND HAVE SENT PRICES PLUMMETING OUR MARGINS HAVE COLLAPSED WHILE OUR OPERATING COSTS HAVE TRIPLED IN THREE YEARS SAID MR BERNARD BLAMING THE SITUATION ON THE MOROSE INTERNATIONAL ECONOMY ANTIALCOHOL CAMPAIGNS AND THE COST OF THE PRODUCT GROUPE MOET IS A UNIT OF THE LUXURYGOODS CONGLOMERATE LVMH MOET HENNESSY LOUIS VUITTON SA AND PRODUCES CHAMPAGNE UNDER THE MOET ET CHANDON MERCIER AND RUINART LABELS THE LAYOFFS WILL AFFECT EMPLOYEES AT ALL LEVELS OF THE COMPANY FROM CELLAR WORKERS TO HEADQUARTERS STAFF AND WILL LEAVE GROUPE MOET WITH ABOUT 1400 EMPLOYEES MR BERNARD SAID 9305210078 930521 BRITAIN CLEARS A BIG HURDLE ON EUROPE PACT BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BRITAIN MOVED A STEP CLOSER TO SIGNING ON TO THE EUROPEAN COMMUNITY'S CONTROVERSIAL MAASTRICHT UNITY TREATY AS THE HOUSE OF COMMONS ENDED MORE THAN A YEAR OF STORMY ARGUMENT BY VOTING TO RATIFY THE PACT A VOTE ON THE THIRD READING OF A GOVERNMENT BILL ON THE TREATY PRODUCED A SOLID MAJORITY OF 180 VOTES FOR PRIME MINISTER JOHN MAJOR A TOTAL OF 292 MOSTLY CONSERVATIVE MEMBERS OF PARLIAMENT VOTED IN FAVOR OF THE BILL PROPOSING RATIFICATION WHILE 112 INCLUDING SEVERAL DOZEN EUROREBELS FROM THE CONSERVATIVE PARTY AND A NUMBER OF LABOR MEMBERS OF PARLIAMENT VOTED AGAINST BEFORE THE VOTE MR MAJOR TOLD PARLIAMENT THAT NOTHING IN THE TREATY OBLIGED BRITAIN TO REJOIN THE EUROPEAN EXCHANGE RATE MECHANISM FROM WHICH THE POUND STERLING WAS PULLED LAST YEAR THANKS TO AN OPTOUT CLAUSE AGREED TO BY EC PARTNERS HE SAID BRITAIN WAS FREE TO STAY OUT OF THE ERM UNLESS AND UNTIL WE DECIDE TO SEEK TO ENTER A SINGLE EUROPEAN CURRENCY HIS GOVERNMENT'S VICTORY THOUGH BY NO MEANS THE END OF BRITAIN'S TORTUOUS RATIFICATION PROCESS BROUGHT A RESPITE AFTER MONTHS OF SNIPING FROM THE LABOR AND LIBERAL DEMOCRAT PARTIES AND FROM MR MAJOR'S OWN TORY BACKBENCHES THOUGH THE MAIN CAUSE OF MR MAJOR'S DIFFICULTIES HAS BEEN THE WEAKNESS OF BRITAIN'S ECONOMY THE DIVISIONS WITHIN HIS TORY PARTY OVER MAASTRICHT HAVE ALSO UNDERMINED HIS GOVERNMENT'S STANDING TUESDAY'S DANISH VOTE IN FAVOR OF MAASTRICHT LEAVES RATIFICATION PENDING ONLY IN BRITAIN AND GERMANY AND THOUGH CHANCELLOR HELMUT KOHL FACES OPPOSITION TO THE TREATY THERE IS LITTLE DOUBT ABOUT GERMAN RATIFICATION THE NEXT STEP IN BRITAIN'S RATIFICATION PROCESS COMES IN JUNE WHEN DISCUSSION OF THE GOVERNMENT'S BILL BEGINS IN THE HOUSE OF LORDS IF APPROVED THERE AS IS EXPECTED DESPITE OPPOSITION FROM SUCH CRITICS OF MAASTRICHT AS BARONESS THATCHER AND LORD TEBBIT IT WILL GO BEFORE QUEEN ELIZABETH FOR ROYAL ASSENT POSSIBLY IN JULY BEFORE FINALLY RATIFYING THE TREATY MR MAJOR WILL HAVE TO FULFILL A PROMISE TO REOPEN DEBATE IN THE HOUSE OF COMMONS ON BRITAIN'S OPTOUT FROM THE TREATY'S SOCIAL CHAPTER 9305210077 930521 BUSINESS BRIEFS CORNING INC'S CORNING LAB SERVICES UNIT ACQUIRED CLOSELY HELD DEYOR LABORATORIES TERMS WEREN'T DISCLOSED ALCO STANDARD CORP COMPLETED THE ACQUISITION OF MACKPAK INC TERMS WEREN'T DISCLOSED AMERICAN TELEPHONE & TELEGRAPH CO SIGNED A THREEYEAR 15 MILLION CONTRACT TO PROVIDE LONGDISTANCE AND DATA COMMUNICATIONS SERVICE TO CBS INC A CONTRACT PREVIOUSLY HELD BY MCI COMMUNICATIONS CORP MCDERMOTT INTERNATIONAL INC AGREED TO ACQUIRE DELTA CATALYTIC CORP OF CALGARY ALBERTA TERMS WEREN'T DISCLOSED TRACOR INC'S TRACOR APPLIED SCIENCES INC UNIT RECEIVED A FIVEYEAR 367 MILLION CONTRACT TO PROVIDE ENGINEERING AND TECHNICAL SERVICES TO THE US NAVY BONTON STORES INC SAID A FEDERAL COURT DISMISSED A LAWSUIT THAT HAD ALLEGED SECURITIES LAW VIOLATIONS IN CONNECTION WITH THE COMPANY'S INITIAL PUBLIC OFFERING IN 1991 ICF INTERNATIONAL INC SAID A UNIT SIGNED A 206 MILLION CONTRACT TO MANAGE THE DESIGN AND CONSTRUCTION OF AN 11MILE LIGHT RAIL TRANSIT LINE IN MANILA THE PHILIPPINES 9305210076 930521 US HITS JAPANESE TOOLS WITH DUMPING PENALTIES SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE US COMMERCE DEPARTMENT ISSUED FINAL ANTIDUMPING PENALTIES THURSDAY AGAINST CUTTING AND SANDING TOOLS FROM JAPAN RAISING LEVIES SUBSTANTIALLY FROM PRELIMINARY LEVELS THE DEPARTMENT LEVIED 5443 DUMPING PENALTIES AGAINST JAPANESE ELECTRIC CUTTING TOOLS PARTICULARLY HITTING JAPAN'S MAKITA CORP AND ITS TWO US SUBSIDIARIES MAKITA USA INC AND MAKITA CORP OF AMERICA PRELIMINARY DUMPING PENALTIES WERE INITIALLY 4117 FOR JAPANESE ELECTRIC GRINDING AND SANDING TOOLS THE COMMERCE DEPARTMENT HAS LEVIED A 4675 ANTIDUMPING PENALTY UP FROM 3898 INITIALLY THE US INTERNATIONAL TRADE COMMISSION WILL HAVE 45 DAYS IN WHICH TO DETERMINE WHETHER THE DUMPING HAS OR COULD FINANCIALLY INJURE US INDUSTRY AN AFFIRMATIVE RULING WOULD UPHOLD THE COMMERCE DEPARTMENT'S PENALTIES IMPORTS OF JAPANESE ELECTRIC CUTTING TOOLS TOTALED 1256 MILLION IN 1992 ACCORDING TO COMMERCE GRINDING AND SANDING TOOL IMPORTS TOTALED 407 MILLION 9305210075 930521 TECHNOLOGY & HEALTH STORAGETEK STOCK JUMPS ON FIRM'S PLANS TO BUY AMPERIF AND SHIP ICEBERG SYSTEM BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL STORAGE TECHNOLOGY CORP SAID IT AGREED TO ACQUIRE AMPERIF CORP A PRIVATELY HELD CHATSWORTH CALIF STORAGE SYSTEM MANUFACTURER FOR STOCK VALUED AT ABOUT 836 MILLION THE COMPANY BASED IN LOUISVILLE COLO ALSO SAID IT EXPECTS TO BEGIN SHIPPING ITS LONGDELAYED ICEBERG STORAGE SYSTEM BY THE 1993 FOURTH QUARTER THE COMPANY'S CHAIRMAN SAID ICEBERG SHOULD ENTER THE INTERNAL BETA TEST PORTION OF THE PROGRAM IN JULY ICEBERG CAN STORE MASSIVE AMOUNTS OF COMPUTER DATA ON INEXPENSIVE DISK DRIVES GERARD HALLAREN AN ANALYST AT HANIFEN IMHOFF IN DENVER SAID THE STOCK RISE WAS DUE TO A COMBINATION OF THE TWO EVENTS BUT PROBABLY THE AMPERIF ACQUISITION AFFECTED IT MORE IN THE ACQUISITION STORAGETEK SAID IT WILL ISSUE ABOUT 13 MILLION COMMON SHARES TO AMPERIF SHAREHOLDERS AN ADDITIONAL 600000 COMMON SHARES WILL BE SET ASIDE FOR WARRANTS AND EMPLOYEE STOCK OPTIONS THE TRANSACTION SUBJECT TO REGULATORY AND BOARD APPROVALS IS EXPECTED TO BE ACCOUNTED FOR AS A POOLING OF INTERESTS JOE PAYNE AN ANALYST AT KEMPER SECURITIES IN CHICAGO SAID IT'S AN AGGRESSIVE ACQUISITION OF TECHNOLOGY HE AND OTHER ANALYSTS SAID THE ACQUISITION COULD BLOCK STORAGETEK'S POTENTIAL COMPETITORS IN THE DISK ARRAY MARKET FROM OBTAINING AMPERIF'S TECHNOLOGY DAVID VELLANTE A CONSULTANT AT INTERNATIONAL DATA CORP SAID THE ACQUISITION IS STRATEGICALLY IMPORTANT TO STORAGETEK BECAUSE THEY'RE GAINING ACCESS TO VIKING AMPERIF'S DISK ARRAY STORAGE SUBSYSTEM THE ACQUISITION WAS QUICKLY NOTICED BY STORAGETEK'S RIVALS DICK EGAN CHAIRMAN OF EMC CORP IN HOPKINTON MASS A COMPETITOR AND THE LARGEST DISK ARRAY STORAGE SYSTEM SUPPLIER SAID HE DIDN'T THINK THE ACQUISITION WOULD HAVE A SIGNIFICANT IMPACT ON THE 15 BILLION MARKET FOR IBM COMPATIBLE DISK SYSTEMS WHICH INCLUDES A 600 MILLIONTO700 MILLION MARKET FOR ARRAY DISKS BUT MR VELLANTE SAID IN MY OPINION THE COMPETITORS BLEW IT THEY MISSED THE OPPORTUNITY STORAGETEK SAID THE AMPERIF ACQUISITION IS PART OF A THREETIERED STRATEGY TO ENHANCE MARKET COVERAGE THE ICEBERG PRODUCT IS THE PRIMARY ELEMENT AMPERIF'S VIKING ARCHITECTURE IS THE SECOND AND STORAGETEK'S NORDIQUE PRODUCT IS THIRD MR HALLAREN SAID AMPERIF'S VIKING PRODUCT IS AS SIGNIFICANT AS STORAGETEK'S ICEBERG THE COMPANY SAID THAT BASED ON CURRENT PLANS IT EXPECTS ICEBERG TO BE AVAILABLE LATER THIS YEAR I AM PLEASED TO REPORT THAT WE CONTINUE TO MAKE STEADY PROGRESS ON ICEBERG SAID RYAL R POPPA THE COMPANY'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER THE RESULTS THAT WE HAVE SEEN GIVE US ADDED CONFIDENCE IN THE PERFORMANCE CHARACTERISTICS AND THE CURRENT TESTING AND MARKETINTRODUCTION SCHEDULES FOR THE SYSTEM HE ADDED THAT THE SCHEDULE CANNOT BE GUARANTEED THE COMPANY HAS BEEN BESET BY A SERIES OF DELAYS IN THE HIGHLY TOUTED ICEBERG THE TECHNOLOGY WAS EXPECTED TO GENERATE AS MUCH AS 50 MILLION IN REVENUE FOR STORAGETEK IN 1992 ANALYSTS PREVIOUSLY SAID THEY DIDN'T EXPECT THE PRODUCT TO CONTRIBUTE ANY REVENUE TO THE COMPANY UNTIL LATE 1993 AT THE EARLIEST MR PAYNE SAID IF STORAGE TEK BEGINS SHIPPING THE PRODUCT IN THE 1993 FOURTH QUARTER IT WON'T REALIZE REVENUE FROM THE PRODUCT UNTIL EARLY 1994 BECAUSE THE COMPANY IS CONSERVATIVE ABOUT RECOGNIZING REVENUE 9305210074 930521 BUSINESS BRIEF ACTION AUTO RENTAL INC SUIT RELATED TO BANKRUPTCY TARGETS GM'S FINANCE UNIT ACTION AUTO RENTAL INC OF SOLON OHIO SAID IT SUED GENERAL MOTORS CORP'S GMAC FINANCE UNIT TO RECOVER AT LEAST 123 MILLION TRANSFERRED TO GMAC DURING THE 90 DAYS PRECEDING ACTION AUTO'S CHAPTER 11 BANKRUPTCYLAW FILING IN JANUARY 1993 ACTION AUTO'S LAWSUIT ALLEGES THAT GMAC VIOLATED US BANKRUPTCY LAWS BY GETTING PREFERENCE OVER OTHER CREDITORS WHEN IT RECEIVED THE PAYMENTS GMAC SAID IT HASN'T BEEN SERVED WITH THE LAWSUIT YET BUT IN THE EVENT WE ARE WE ARE CONFIDENT THE COMPLAINT HAS NO MERIT SPOKESMAN TERRY SULLIVAN SAID ACTION AUTO FILED FOR PROTECTION AFTER GMAC SUED ACTION AUTO TO COLLECT DEBT OF ABOUT 62 MILLION IN ITS LAWSUIT GMAC SOUGHT CONTROL OF ACTION AUTO'S FLEET OF CARS WHICH ACTION SAID WOULD EFFECTIVELY PUT IT OUT OF BUSINESS SEPARATELY ACTION SAID IT EXPECTS A ONETIME GAIN OF 600000 FROM THE SALE OF ITS HEADQUARTERS BUILDING TO SHERWINWILLIAM CO FOR 42 MILLION ACTION WILL MAINTAIN ITS HEADQUARTERS IN SOLON BY MOVING TO A FACILITY OWNED BY SHERWINWILLIAMS LEASE TERMS WILL RESULT IN SAVINGS OF ABOUT 50000 A MONTH OVER THE NEXT YEAR 9305210073 930521 PACIFIC GAS SEES 2NDPERIOD CHARGE OF 103 MILLION BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL PACIFIC GAS & ELECTRIC CO SAID IT WILL TAKE A PRETAX CHARGE OF 103 MILLION OR 14 CENTS A SHARE AGAINST SECONDQUARTER EARNINGS FOR COSTS RELATED TO A VOLUNTARY RETIREMENT PROGRAM THE CHARGE IS ABOUT 60 MILLION AFTER TAXES SAID THE UTILITY WHICH IS BASED IN SAN FRANCISCO THE WORKFORCE REDUCTIONS ARE PART OF A RESTRUCTURING TO SLASH OPERATING COSTS AND ENERGY PRICES BY ABOUT 180 MILLION A YEAR WHEN THE CUTBACKS WERE OUTLINED IN FEBRUARY PG&E SAID IT DIDN'T EXPECT ANY RELATED CHARGES WE HAD ANTICIPATED THAT SAVINGS FROM THE REORGANIZATION WOULD PAY FOR COSTS OVER THE COURSE OF THE PROGRAM WHICH RUNS THROUGH 1995 BUT WHEN WE FROZE ELECTRIC UTILITY RATES IN APRIL THAT CHANGED HOW THE COMPANY HAD TO ACCOUNT FOR THE RESTRUCTURING COSTS A SPOKESMAN SAID IN THE YEAREARLIER QUARTER PG&E REPORTED NET INCOME OF 3364 MILLION OR 75 CENTS A SHARE ON REVENUE OF 252 BILLION IN APRIL THE FIRST MONTH OF THE CURRENT QUARTER PG&E HAD EARNINGS OF 47 MILLION PG&E SHARES CLOSED AT 33125 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE CHARGE WAS DISCLOSED AFTER THE MARKETS CLOSED THE CHARGE REFLECTS SEVERANCE COSTS FOR ABOUT 1000 MANAGERS WHO OPTED FOR THE BUYOUT PACKAGE A PG&E SPOKESMAN SAID MORE PEOPLE TOOK THE OFFER THAN EXPECTED SO PG&E HAS SHORTENED ITS TIMETABLE FOR REDUCING ITS CENSUS THE COMPANY PREVIOUSLY HAD AIMED TO CUT ITS WORK FORCE OF 26600 BY ABOUT 3000 JOBS OVER THREE YEARS WITH HALF THE DEPARTURES BY THE END OF THIS YEAR NOW THE COMPANY EXPECTS TO SHAVE ABOUT 2600 JOBS BY DEC 31 MANY OF THESE ARE EXPECTED TO COME THROUGH VOLUNTARY SEVERANCE BY UNION MEMBERS SOME SALARIED EMPLOYEES AND MANAGERS WILL BE DISMISSED THE SPOKESMAN SAID DETAILS WEREN'T AVAILABLE PG&E ALSO SAID IT REACHED A TENTATIVE AGREEMENT ON A NEW LABOR CONTRACT WITH THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS WHICH REPRESENTS 60 OF COMPANY EMPLOYEES THE PACT INCLUDES A VOLUNTARY RETIREMENT AND SEVERANCE PROGRAM THAT COULD COST AS MUCH AS 155 MILLION THE JOB CUTS WOULD BE IMPLEMENTED LATER THIS YEAR IF THE PACT IS RATIFIED BY THE UNION MEMBERSHIP WHICH IS SCHEDULED TO VOTE IN ABOUT FIVE WEEKS A RELATED CHARGE AGAINST EARNINGS IS POSSIBLE IN THE THIRD QUARTER THE COMPANY SAID UNION OFFICIALS COULDN'T BE REACHED SEPARATELY PG&E SAID IT PLANS TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION A SHELF REGISTRATION FOR 2 BILLION OF MORTGAGE BONDS AND UNSECURED DEBENTURES OR NOTES PG&E ALSO PLANS TO REDEEM AS MUCH AS 18 BILLION OF MORTGAGE BONDS THE PLANNED REFINANCINGS COULD PROVIDE ANNUAL SAVINGS OF ABOUT 30 MILLION THE UTILITY SAID 9305210072 930521 NOTABLE & QUOTABLE RUPERT MURDOCH THE CHAIRMAN OF TWENTIETH CENTURY FOX ANSWERING THE QUESTION WHAT WON'T YOU DO IN A MAY 17 NEW YORKER ARTICLE ON MORALITY AND THE MOVIES YOU WOULDN'T DO ANYTHING THAT YOU COULDN'T LIVE WITH THAT WOULD BE AGAINST YOUR PRINCIPLES IT'S A VERY DIFFICULT QUESTION IF YOU'RE A MAN OF CONSCIENCE IF YOU THOUGHT THAT YOU WERE DOING SOMETHING THAT WAS HAVING A MALEVOLENT EFFECT AS YOU SAW IT ON SOCIETY YOU WOULD NOT DO IT WE WOULD NEVER DO VIOLENCE SUCH AS YOU SEE IN A NINTENDO GAME WHEN I SEE KIDS PLAYING NINTENDO AND THEY'RE ABLE TO ACTUALLY GET THEIR CHARACTER ON THE SCREEN TO BITE HIS OPPONENT IN THE FACE THAT'S PRETTY SICK VIOLENCE AND YOU WATCH THE KIDS DOING THIS TO EACH OTHER AND THEY'RE YELLING AND LAUGHING FOR HOURS ON END IS IT ALL FANTASY AND IS IT ALL HARMLESS FANTASY I DON'T KNOW 9305210071 930521 EII HOLDINGS TURNS DOWN OFFER FROM CARL ICAHN NEW YORK CARL ICAHN WAS REBUFFED IN HIS BID TO BUY EII HOLDINGS INC THE CREDITORS COMMITTEE OF EII A HOLDING COMPANY UNDER BANKRUPTCYLAW PROTECTION ADVISED DIRECTORS TO TURN DOWN THE FINANCIER'S 118 BILLION CASH OFFER FOR THE COMPANY EII HAS ITS OWN REORGANIZATION PLAN THAT WILL BE PUT BEFORE A BANKRUPTCY COURT MONDAY THE BOARD CONCURRED WITH THE REFUSAL AND INFORMED MR ICAHN OF ITS DECISION IN A LETTER FROM ITS ATTORNEY MYRON TREPPER OF WILLKIE FARR & GALLAGHER IF YOU WISH TO PURSUE A PROPOSAL TO ACQUIRE ASSETS OF EII MR TREPPER WROTE TO MR ICAHN WE ENCOURAGE YOU TO CONTACT EII'S NEW BOARD OF DIRECTORS WHO WILL TAKE OFFICE FOLLOWING THE CONSUMMATION OF THE COMPANY'S REORGANIZATION PLAN THE DIRECTORS WILL INCLUDE STEVEN GREEN WHO IS CURRENTLY CHAIRMAN OF THE THREEPERSON EII BOARD MR ICAHN COULDN'T BE REACHED FOR COMMENT EII IS THE PARENT OF SAMSONITE LUGGAGE CULLIGAN WATER SOFTENER AND MCGREGOR APPAREL 9305210070 930521 BUSINESS BRIEF PACIFIC TELESIS GROUP UNIT TO SPEND 650 MILLION TO UPGRADE CALIFORNIA LINES PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT SAID IT WILL SPEND 650 MILLION OVER FIVE YEARS TO UPGRADE ITS CALIFORNIA TELEPHONE NETWORK WITH FIBER OPTIC LINES AND ASSOCIATED ELECTRONICS BOTH PACIFIC BELL AND ITS PARENT ARE BASED IN SAN FRANCISCO PACIFIC BELL SAID THE MODERNIZATION PROGRAM WILL IMPROVE THE QUALITY OF SERVICES SUCH AS VIDEO CONFERENCING AND TELECOMMUTING IT TAPPED NORTHERN TELECOM INC THE US UNIT OF TORONTOBASED NORTHERN TELECOM LTD AS A PRIMARY SUPPLIER OF SYNCHRONOUS OPTICAL NETWORK EQUIPMENT IT ALSO CHOSE DSC COMMUNICATIONS CORP OF DALLAS TO SUPPLY EQUIPMENT THAT PROVIDES A WIDE ARRAY OF ADVANCED VOICE DATA AND BROADBAND SERVICES AMOUNTS OF THE CONTRACTS WEREN'T DISCLOSED IN ADDITION PACIFIC BELL SIGNED CONTRACTS WITH TWO OTHER PRIMARY SUPPLIERS ADC TELECOMMUNICATIONS OF MINNEAPOLIS AND PIRELLI CABLE CORP OF LEXINGTON SC AND THREE SUPPLIERS RELIANCE COMM/TEC BEDFORD TEXAS SEICOR HICKORY NC AND TELCO SYSTEMS NORWOOD MASS 9305210069 930521 WHO'S NEWS SALEM CORP AGREES TO SETTLE A LAWSUIT BY NAMING 3 DIRECTORS PITTSBURGH SALEM CORP THE ENGINEERING COMPANY WHOSE BOARD INCLUDES SEVERAL RELATIVES OF ITS CHAIRMAN VICTOR POSNER AGREED TO SETTLE A SHAREHOLDER LAWSUIT BY NOMINATING THREE NEW OUTSIDE DIRECTORS TO ITS BOARD THE SETTLEMENT IS SUBJECT TO COURT APPROVAL A HEARING IS SCHEDULED FOR JULY 6 THE 1989 LAWSUIT FILED IN FEDERAL COURT IN PENNSYLVANIA ALLEGED THAT SALEM OVERPAID MR POSNER A MIAMI BEACH FLA FINANCIER AND PAID EXCESSIVE INSURANCE PREMIUMS TO A COMPANY IN WHICH MR POSNER HELD A 30 STAKE THE SUIT ALSO COMPLAINED THAT MR POSNER HAD FAILED TO HOLD ANNUAL MEETINGS FROM 1986 THROUGH 1988 THE NEW BOARD NOMINEES WERE AGREED ON BY SALEM AND THE PLAINTIFFS LED BY BEVERLY HILLS CALIF FINANCIER EDWARD MARSHALL IN 1989 MR MARSHALL UNSUCCESSFULLY TRIED TO OUST MR POSNER BY BUYING THE CHAIRMAN'S STAKE OF SLIGHTLY UNDER 50 THE NOMINEES ARE LEO WALLBERG ALEX STUART AND PHILIP SMITH A SALEM SPOKESMAN SAID HE COULDN'T PROVIDE BIOGRAPHICAL INFORMATION ON THEM MR MARSHALL DECLINED COMMENT SALEM'S CONTROLLER GEORGE DOUGLAS SAID THREE OF THE COMPANY'S BOARD MEMBERS WHICH ONES ARE YET TO BE DECIDED WILL RESIGN TO MAKE ROOM FOR THE NEW NOMINEES THE BOARD HAS 13 MEMBERS INCLUDING FIVE WITH THE LAST NAME OF POSNER SALEM DESIGNS AND BUILDS FURNACES FOR METAL INDUSTRIES AND OTHER EQUIPMENT FOR METAL AND COAL INDUSTRIES SALEM SAID ITS ANNUAL MEETING HAS BEEN POSTPONED UNTIL JULY 16 SO IT HAS TIME TO PRINT AND MAIL PROXIES WITH INFORMATION ABOUT THE NEW BOARD NOMINEES 9305210068 930521 INDICTMENT IN DALLAS ALLEGES THAT SIX FAKED GINNIE MAE OWNERSHIP DALLAS SIX MEN WERE INDICTED ON FEDERAL FRAUD AND CONSPIRACY CHARGES IN AN ALLEGED SCAM THAT PROSECUTORS SAY INVOLVED FAKING OWNERSHIP OF MORTGAGEBACKED SECURITIES FROM THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION OR GINNIE MAE IN THE SCHEME ALLEGEDLY CARRIED OUT FROM 1989 TO 1991 THE SIX MEN CREATED A SERIES OF PHONY DOCUMENTS PURPORTING TO SHOW OWNERSHIP OF ACTUAL GOVERNMENT SECURITIES ACCORDING TO AN INDICTMENT FILED IN US DISTRICT COURT HERE THE SIX MEN DENNIS ARNO JAMIESON DOY BYRON BALLARD RONALD DEAN CREASMAN RONNIE MARK BREWEN DAVID ARTHUR LLOYD AND CARLOS HILL THEN DUPED INVESTORS INTO BELIEVING THEY OWNED THE SECURITIES WHICH THEY CLAIMED WERE HELD IN A TRUST UNDER A FICTICIOUS NAME THE INDICTMENT CHARGES WILLIAM F ALEXANDER AN ATTORNEY FOR MR JAMIESON AND MR CREASMAN SAID HIS CLIENTS COOPERATED WITH THE GOVERNMENT ALL THE WAY AND ARE LIKELY TO REACH A PRETRIAL AGREEMENT WITH PROSECUTORS THE OTHER FOUR DEFENDANTS COULDN'T BE REACHED IMMEDIATELY FOR COMMENT VICTIMS INCLUDE INSURANCE COMPANIES AND OTHER BUSINESSES THAT CLAIMED TO OWN THE SECURITIES THEN USED THEM AS COLLATERAL FOR LOANS PROSECUTORS ALLEGE FOR INSURANCE COMPANIES RENTING ASSETS IS LEGAL IN MANY STATES BUT IN THIS CASE THE ASSETS NEVER BELONGED TO THE RENTERS AND WHEN THE INSURANCE COMPANIES FAILED POLICY HOLDERS AND THIRDPARTY CLAIMANTS LOST MILLIONS PROSECUTORS SAID 9305210067 930521 BUSINESS BRIEF MARUBENI CORP STRONG YEN AFFECTED DECLINE IN FISCAL 1993 PRETAX PROFIT MARUBENI CORP SAID UNCONSOLIDATED PRETAX PROFIT FELL 26 TO 3741 BILLION YEN 338 MILLION IN THE FISCAL YEAR ENDED MARCH 31 FROM THE PRIOR YEAR OWING TO SLUGGISHNESS IN GLOBAL TRADE AND THE STRONG YEN REVENUE ROSE 75 TO 16864 TRILLION YEN THE OSAKA JAPAN COMPANY HAS BUSINESS IN TRADING MACHINERY CONSTRUCTION METALS ENERGY AND CHEMICALS MARUBENI PREDICTED THAT REVENUE WOULD DECLINE IN THE CURRENT FISCAL YEAR ENDING MARCH 31 1994 LARGELY OWING TO THE YEN'S STRENGTH BECAUSE INCOME FROM OVERSEAS OPERATIONS SHRINKS WHEN CONVERTED PRETAX PROFIT IS SEEN MOSTLY FLAT BUT THE RECENT YEAR'S COSTS FOR DEALING WITH SOURED FINANCIAL INVESTMENTS SHOULD RAISE NET INCOME IN THE CURRENT YEAR BY COMPARISON COMPANY OFFICIALS SAID MARUBENI PREDICTED THAT FOR THE FIRST HALF OF THE FISCAL YEAR ENDING SEPT 30 IT WOULD SEE PRETAX PROFIT OF 16 BILLION YEN NET INCOME OF EIGHT BILLION YEN AND REVENUE OF SEVEN TRILLION YEN 9305210066 930521 CHEVRON AGREES TO PAY TO SETTLE COMPLAINTS RELATED TO OIL SPILL SACRAMENTO CALIF THE CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY SAID CHEVRON CORP HAS AGREED TO PAY 500000 TO SETTLE COMPLAINTS ARISING FROM A 20000GALLON OIL SPILL BY THE COMPANY NEAR EL SEGUNDO IN SOUTHERN CALIFORNIA IN 1991 THE STATE EPA SAID CHEVRON'S SHIPPING UNIT AGREED TO PLEAD NO CONTEST TO ONE MISDEMEANOR VIOLATION OF STATE LAW FOR THE MARCH 16 1991 DISCHARGE INTO SANTA MONICA BAY THE GOVERNMENT SAID CHEVRON ALSO AGREED TO PAY 200000 IN CRIMINAL PENALTIES WITH ANOTHER 150000 IN RESTITUTION AND TO COVER COSTS IN THE COURSE OF NEGOTIATIONS TO SETTLE POSSIBLE CIVIL CHARGES STEMMING FROM THE INCIDENT THE GOVERNMENT SAID CHEVRON ALSO AGREED TO PLACE 150000 IN AN ESCROW ACCOUNT TO FUND ANTIPOLLUTION PROJECTS IN THE GREATER SANTA MONICA BAY AREA A CHEVRON SPOKESMAN SAID THE COMPANY BELIEVES ONLY 8000 GALLONS OF OIL WERE SPILLED DURING THE INCIDENT HE ALSO SAID CHEVRON'S AGREEMENT TO PAY THE LAST 150000 INTO THE ESCROW ACCOUNT SHOULD NOT BE VIEWED DIRECTLY AS PART OF A SETTLEMENT WITH THE GOVERNMENT ALTHOUGH IT WOULD MOOT ANY QUESTION REGARDING CIVIL CLAIMS 9305210065 930521 BUSINESS BRIEF ZALE CORP JEWELRY RETAILER SAYS JUDGE CLEARS REORGANIZATION PLAN ZALE CORP SAID A FEDERAL BANKRUPTCY JUDGE CONFIRMED ITS REORGANIZATION PLAN WHICH IT SAID SHOULD ENABLE IT TO EMERGE FROM BANKRUPTCYCOURT PROTECTION BY MIDSUMMER ZALE HAS BEEN IN CHAPTER 11 PROCEEDINGS SINCE JANUARY 1992 UNDER THE REORGANIZATION CREDITORS WILL RECOVER ABOUT 26 OF THE DALLAS JEWELRY RETAILER'S TOTAL 16 BILLION DEBT AMONG MAJOR GROUPS HOLDERS OF 329 MILLION OF ZALE'S SENIOR UNSECURED CLAIMS WILL RECEIVE 243 OF THEIR CLAIMS AND HOLDERS OF 2391 MILLION OF UNSECURED BANK DEBT WILL RECEIVE 216 OF THEIR CLAIMS HOLDERS OF 2153 MILLION OF ZALE'S JUNIOR BOND CLAIMS WILL RECEIVE 81 OF THEIR CLAIMS HOLDERS OF 231 MILLION OF ZALE CREDIT CORP'S SENIOR UNSECURED CLAIMS WILL RECEIVE 487 OF THEIR CLAIMS AND HOLDERS OF 1645 MILLION OF GORDON BOND CLAIMS WILL RECEIVE 227 OF THEIR CLAIMS ANDREAS LUDWIG CHIEF FINANCIAL OFFICER SAID THE PLAN IS BASED ON ZALE'S 310 MILLION EQUITY VALUE 60 MILLION IN NEW DEBT THAT WILL GO TO THE FORMER GORDON BANK GROUP AND ABOUT 50 MILLION IN CASH TO BE DISTRIBUTED TO ZALE CREDIT CORP CREDITORS 9305210064 930521 DEFUNCT WELLINGTON GROUP'S OWNER GETS INDICTED FOR SWINDLE LOS ANGELES A FEDERAL GRAND JURY INDICTED THE OWNER OF A DEFUNCT REAL ESTATE INVESTMENT CONCERN ON CHARGES OF SWINDLING CLIENTS OUT OF MORE THAN 30 MILLION OVER NEARLY THREE YEARS MORRIS D ENGLISH JR OF REDONDO BEACH CALIF WHO PROMOTED HIS COMPANY ON A RADIO BUSINESS SHOW WAS ARRESTED AFTER THE GRAND JURY HANDED UP A 50COUNT INDICTMENT THAT INCLUDED CHARGES OF SECURITIES FRAUD MONEY LAUNDERING AND CRIMINAL CONTEMPT MR ENGLISH 46 YEARS OLD HEADED WELLINGTON GROUP INC AN INVESTMENT CONCERN THAT OPERATED UNTIL FEBRUARY 1991 OUT OF OFFICES IN THREE SOUTHERN CALIFORNIA CITIES MR ENGLISH OPERATED THE COMPANY AS A MASSIVE FRAUDULENT SCHEME ACCORDING TO THE INDICTMENT INVESTORS WERE PROMISED INTEREST OF BETWEEN 15 AND 16 ON THEIR MONEY WHICH THEY WERE LED TO BELIEVE WOULD BE USED TO MAKE LOANS TO APPROVED BORROWERS BUT IN SOME INSTANCES THE LOANS WERE NEVER MADE AND MR ENGLISH KEPT THE FUNDS INSTEAD OF RETURNING THEM TO INVESTORS THE INDICTMENT SAID IF CONVICTED MR ENGLISH FACES A MAXIMUM SENTENCE OF 470 YEARS IN PRISON AND A FINE OF 60 MILLION OR MORE PROSECUTORS SAID MR ENGLISH WAS IN FEDERAL CUSTODY AND COULDN'T BE REACHED HIS ATTORNEY DIDN'T RETURN A PHONE CALL FOR COMMENT 9305210063 930521 POLITICS & POLICY SENATOR GRIDLOCK OR THE CONSUMMATE LEGISLATOR GOP LEADER DOLE TRIES TO HAVE IT BOTH WAYS BY JOHN HARWOOD AND JACKIE CALMES STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHEN SEVERAL MODERATE REPUBLICANS RECENTLY BEGAN WORKING WITH CENTRIST DEMOCRATS ON A BIPARTISAN ALTERNATIVE TO PRESIDENT CLINTON'S TAX PACKAGE SENATE GOP LEADER BOB DOLE SENT A STERN MESSAGE TO THE TROOPS STOP NO FREELANCE DEALS THE TALKS SOON COLLAPSED BUT AFTER GOP FINANCE COMMITTEE MEMBER JOHN DANFORTH WENT AHEAD ON HIS OWN TO DRAFT A COMPROMISE WITH DEMOCRAT DAVID BOREN MR DOLE WENT ON TELEVISION AND THE SENATE FLOOR YESTERDAY TO PRAISE THEIR EFFORT AS MOVING IN THE RIGHT DIRECTION MR DOLE'S REVERSAL UNDERSCORES HIS OFTEN CONTRADICTORY ROLES NOW THAT HE'S NO LONGER FORCED TO CARRY WATER FOR REPUBLICAN PRESIDENTS AS THE NATIONAL GOP LEADER AND A POTENTIAL 1996 PRESIDENTIAL CANDIDATE HE FACES STRONG PRESSURES FROM HIS RIGHT FLANK TO BATTLE MR CLINTON AT EVERY TURN YET AS A CONSUMMATE LEGISLATOR HE'S STILL EAGER TO HELP SHAPE POLICY EVEN WITH A DEMOCRAT IN THE WHITE HOUSE HE'S RIDING TWO STRONG HORSES ABOUT THE SAME SIZE AND THE SAME SPEED SAYS STEPHEN BELL A FORMER TOP SENATE AIDE SOMEWHERE THEY'RE GOING TO SPLIT AND HE'S GOT TO PICK ONE OR THE OTHER FOR THE 69YEAROLD KANSAN DECISIONTIME MAY BE NEARING HAVING ALREADY ENGINEERED THE DEMISE OF MR CLINTON'S ECONOMIC STIMULUS PROPOSAL HE NONETHELESS STILL HOLDS OUT HOPE THAT HE CAN BRING A MAJORITY OF REPUBLICANS ALONG BEHIND SOME SORT OF COMPROMISE WITH THE ADMINISTRATION ON HEALTH CARE BUT ALREADY SENATE GOP CONSERVATIVES HAVE SPLINTERED OFF FROM THE TASK FORCE MR DOLE APPOINTED TO CRAFT A REPUBLICAN ALTERNATIVE THE CONSERVATIVES SEEK TO SHARPEN THE CONTRAST WITH MR CLINTON BY RELYING ON A FREEMARKET APPROACH MEANWHILE SENSITIVE TO THE REFORMIST CRIES OF ROSS PEROT THE REPUBLICAN LEADER ALSO INSISTS HE WANTS A BIPARTISAN COMPROMISE ON CAMPAIGN FINANCE REFORM INSTEAD OF THE FILIBUSTER SOME COLLEAGUES CLAMOR FOR I DIDN'T COME HERE JUST TO BE AGAINST EVERYTHING SAYS MR DOLE SQUINTING INTO THE SUNLIGHT STREAMING ONTO HIS SENATE OFFICE BALCONY I'M A LEGISLATOR FIRST YOU KNOW IT DIDN'T LOOK THAT WAY FOLLOWING THE GOP'S TRIUMPH IN DEFEATING MR CLINTON'S STIMULUS PACKAGE LAST MONTH A CHAGRINED WHITE HOUSE QUICKLY ACCUSED MR DOLE OF DIGGING IN TO BOOST HIS OWN PRESIDENTIAL PROSPECTS IN FACT THE FIGHT SERVED DIFFERENT PURPOSES FOR DIFFERENT REPUBLICAN FACTIONS AND ONLY TEMPORARILY CONCEALED THE DEEP FISSURES AMONG THEM MOREOVER THE ABSENCE OF A REPUBLICAN PRESIDENT HAS REMOVED THE UNIFYING FORCE THAT PREVENTED THE GOP CAUCUS FROM FRAGMENTING DURING THE PAST DOZEN YEARS IT'S THE MIRROR IMAGE OF DEMOCRATS' ADJUSTMENT AS THEY STRUGGLE TO UNITE BEHIND THEIR PRESIDENT IT'S A WHOLE NEW ROLE FOR REPUBLICAN SENATORS SAYS VETERAN SEN PETE DOMENICI OF NEW MEXICO A CLOSE DOLE ALLY ON BUDGET ISSUES WE HAVEN'T HAD TO COALESCE AROUND OUR OWN IDEAS AND PROGRAMS THE BIPARTISAN COMPROMISE ANNOUNCED BY MESSRS DANFORTH AND BOREN ISN'T LIKELY TO MAKE THE PROCESS MUCH EASIER HARDLINE CONSERVATIVES WILL OPPOSE THE PLAN'S 150 BILLION IN TAX INCREASES AND SOME MODERATE REPUBLICANS WILL HAVE TROUBLE BACKING ITS CUTS IN SOCIAL SECURITY AND MEDICARE AND NOTWITHSTANDING MR DOLE'S SUGGESTION THAT THE PLAN REPRESENTS THE BEGINNING OF A BIPARTISAN ALTERNATIVE THERE'S NO INDICATION THAT THE REPUBLICAN LEADER HIMSELF IS READY TO SERIOUSLY BARGAIN IF IT WAS PAINFUL TO HELP GOP PRESIDENTS REAGAN AND BUSH PASS DEFICITCUTTING TAX INCREASES IT COULD BE POLITICALLY FATAL TO DO SO FOR MR CLINTON THE POLITICAL EQUATION ON HEALTH CARE IS MORE COMPLEX MR DOLE WHO ENDURED A LENGTHY REHABILITATION FROM WORLD WAR II WOUNDS THAT CRIPPLED HIS RIGHT ARM HAS A LONGSTANDING INTEREST IN THE ISSUE HE NAMED SEN JOHN CHAFEE OF RHODE ISLAND A MODERATE WHO HAS SPOKEN SYMPATHETICALLY OF SOME OF MR CLINTON'S REFORM IDEAS TO HEAD THE GOP'S HEALTH TASK FORCE BUT AMID CONSERVATIVE DEFECTIONS ON THE ISSUE MR DOLE DEMURS ON HIS OWN INTENTIONS WE'VE GOT DIFFERENT IDEAS I DON'T THINK ANYBODY KNOWS WHO'LL BE THE PLAYERS IN THE FINAL ROUNDUP COLLEAGUES ADMIRE HIS ADAPTABILITY EVEN IF IT SOMETIMES FRUSTRATES THEM DOLE'S LIKE A SHARK SAYS ONE REPUBLICAN SENATOR HE KEEPS MOVING OR HE DIES SEN DOLE IS ENJOYING THE WAVE OF ATTENTION HE IS GETTING AS FINALLY THE REPUBLICANS' UNDISPUTED SPOKESMANLAUGHING AT CARTOONISTS' DARKMIENED CARICATURES AND REPLAYING LAST WEEKEND'S SATURDAY NIGHT LIVE SKIT IN WHICH HE ACTUALLY DUKES IT OUT WITH THE FIRST LADY HE MAINTAINS A BREAKNECK TRAVEL SCHEDULE ON BEHALF OF REPUBLICANS OF ALL STRIPES RELISHING SPECULATION THAT HE'S LAYING THE GROUNDWORK FOR 1996 YET EVEN NOW WITH THE PRESIDENT'S POPULARITY SLIPPING SEN DOLE RECOGNIZES THAT HE PAYS A PRICE FOR OPPOSITION CRITICS DERIDE HIM AS THE PERSONIFICATION OF GRIDLOCK OR DOLELOCK AS HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI PUTS IT HIS POLITICAL REPUTATION REMAINS SCARRED BY THE IMAGES OF PAST CAMPAIGNS THE HATCHET MAN WHO WAS GERALD FORD'S 1976 RUNNING MATE AND THE 1988 LOSER WHO SCOWLED AT MR BUSH TO QUIT LYING ABOUT MY RECORD AND IT'S HIS MISFORTUNE TO HAVE BECOME REPUBLICAN PARTISANINCHIEF AT A TIME WHEN A THIRD POLITICAL FORCE ROSS PEROT IS STEALING A LARGE CHUNK OF NATIONAL ATTENTION AS THE PRINCIPAL OPPOSITION FIGURE TO MR CLINTON MR DOLE FACES CONTINUAL HEADACHES AND PRESSURES AS WELL FROM WITHIN HIS OWN GOP CAUCUS WHERE HE HAS HAD ONLY MIXED SUCCESS IN RESTRAINING DIVERGENT EGOS AND AGENDAS IN GOP LEADERSHIP CONTESTS LAST FALL HE MANEUVERED TO FEND OFF A CONSERVATIVE CHALLENGE TO HIS DEPUTY WYOMING'S ALAN SIMPSON BUT HIS CHOICES LOST BIDS FOR TWO LESSER POSTS SOME CONSERVATIVES HAVE EVEN TALKED OF TAKING ON THE LEADER HIMSELF ALTHOUGH HIS EIGHTYEAR HOLD ON THE JOB REMAINS FIRM A HARDLINE FACTION LED BY WYOMING SEN MALCOLM WALLOP SUSPICIOUS OF MR DOLE'S SMOOTH RELATIONS WITH DEMOCRATIC LEADER GEORGE MITCHELL NOW INSISTS ON SIGNING OFF ON ITEMS THAT THE TWO MEN CLEAR FOR THE SENATE AGENDA AND AFTER REPUBLICAN LEADERS APPEALED FOR A UNIFIED RESPONSE TO MR CLINTON'S ECONOMIC PACKAGE TEXAS SEN PHIL GRAMM ANOTHER POTENTIAL 1996 PRESIDENTIAL CANDIDATE ANGERED THE GOP LEADER BY RACING OUT TO HOLD A NEWS CONFERENCE OF HIS OWN IT WAS SEN GRAMM TOO WHO WAS THE BEHINDTHESCENES PROD LAST WEEK AS MR DOLE PRESSED A FILIBUSTER AGAINST A BILL LIBERALIZING VOTER REGISTRATION PUBLICLY SEN DOLE TESTILY DEFENDED GOP DELAYING TACTICS PRIVATELY HE SUGGESTED TO SENIOR REPUBLICANS THAT THEY ABANDON A FIGHT THEY WERE TOO DIVIDED TO WIN MR DOLE INSISTS HE DECIDED HIMSELF TO PRESS THE FILIBUSTER BUT HE NOTES YOU CAN'T OBSTRUCT UNLESS YOU'VE GOT 'EM ALL THAT'S THE DIFFERENCE BETWEEN BEING A LEADER AND BEING A FREE SPIRIT RECENTLY FORMER PRESIDENT RICHARD NIXON HIMSELF A FORMER SENATOR CAME TO THE CAPITOL FOR LUNCH WITH MR DOLE AND HIS COLLEAGUES MR NIXON WAS ASTONISHED BY THE HECTORING THE REPUBLICAN LEADER ENDURED MY GOSH HE SAID LATER DOES THAT GO ON EVERY WEEK SEN DOLE LAUGHED WOULD YOU BELIEVE TWICE A DAY 9305210062 930521 SHORT INTEREST ON BIG BOARD INCREASES 28 CHRYSLER HAS HIGHEST TOTAL FOLLOWED BY DISNEY HOME DEPOT UP MOST BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ON THE NEW YORK STOCK EXCHANGE ROSE 28 AT MIDMAY CONTINUING A SEESAW OF MODEST INCREASES AND DECLINES DURING THE PAST SEVERAL MONTHS SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE ROSE 6 THE BIG BOARD TOTAL OF MORE THAN 994 MILLION SHARES WAS THE SECOND HIGHEST SHORT INTEREST LEVEL EVER THE MONTHLY TOTAL TOPPED ONE BILLION IN DECEMBER BUT DESPITE THE HISTORIC LEVELS SHORT INTEREST HAS BECOME DIFFICULT TO USE AS A TRUE SIGN OF INVESTOR SENTIMENT THAT'S BECAUSE MUCH OF IT IS ATTRIBUTABLE TO PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS CHRYSLER CORP LED COMPANIES WITH THE HIGHEST SHORT INTEREST 168 MILLION SHARES THAT WAS AN INCREASE OF NEARLY THREE MILLION SHARES FROM THE MIDAPRIL TRADING MONTH IN SECOND PLACE WALT DISNEY CO CONTINUED TO SHOW HIGH SHORT INTEREST 142 MILLION SHARES ALTHOUGH THAT WAS SLIGHTLY LOWER THAN IN THE MONTH BEFORE MARRIOTT CORP ALSO WAS AT THE TOP OF THE LIST WITH 131 MILLION OF ITS SHARES SHORTED A MODEST INCREASE FROM MIDAPRIL HOME DEPOT INC EXPERIENCED THE LARGEST INCREASE IN SHORT INTEREST 34 MILLION SHARES TO A MIDMAY TOTAL OF 119 MILLION SHARES AS PREVIOUSLY REPORTED WALL STREET ANALYSTS DURING IN THE PAST FEW MONTHS HAVE SOURED ON RETAIL STOCKS AS PART OF A GENERAL CONCERN ABOUT GROWTH STOCKS THE CHAIRMAN OF THE HOMEIMPROVEMENT RETAILER SOLD SOME OF HIS STAKE IN MIDMARCH HOME DEPOT SHARES SUBSEQUENTLY FELL FROM THE HIGH40 LEVEL TO THE LOW 40S BUT LATELY ARE BACK UP IN THE HIGH40 RANGE BORDEN INC ALSO HAD A LARGE INCREASE NEARLY TWO MILLION SHARES TO A TOTAL OF 32 MILLION THE FOOD AND CONSUMER PRODUCTS COMPANY WHICH HAS DISAPPOINTED ANALYSTS WITH ITS FINANCIAL RESULTS HAS STRUGGLED TO PERSUADE THEM IT CAN TURN AROUND CITICORP ON THE REBOUND CONTINUES TO SHAKE OFF THE SHORT SELLERS THE NATION'S LARGEST BANKING COMPANY UNTIL RECENTLY HAD BEEN ONE OF THE MOSTSHORTED STOCKS ON THE BIG BOARD BUT THE MONTHLY FIGURE HAS BEEN FALLING IT FELL MORE THAN TWO MILLION SHARES TO STAND AT 44 MILLION AT MIDMAY CITICORP'S MONTHLY SHORT INTEREST ONCE HAD BEEN ABOUT TRIPLE THAT TOTAL ANOTHER BANK OHIO'S BANC ONE CORP ALSO HAD A BIG DROP IN SHORT INTEREST TO THREE MILLION SHARES FROM FIVE MILLION AT MIDAPRIL NEW YORK EXCHANGE SHORT INTEREST ROSE AT THE MAY 15 SETTLEMENT DATE TO 994122756 SHARES FROM 966717904 AT MIDAPRIL ON THE AMEX SHORT INTEREST ROSE TO 79977006 SHARES FROM AN ADJUSTED 77895517 THE MONTH INCLUDED THE 21 TRADING DAYS THROUGH MAY 7 AT MIDMAY 1992 SHORT INTEREST VOLUME WAS 754586553 SHARES ON THE BIG BOARD AND 61920582 SHARES ON THE AMEX TRADERS WHO SELL SHORT BORROW STOCK AND SELL IT BETTING THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS ALTHOUGH A SUBSTANTIAL SHORT POSITION REFLECTS HEAVY SPECULATION THAT A STOCK'S PRICE WILL DECLINE SOME INVESTORS CONSIDER AN INCREASE IN SHORT INTEREST BULLISH BECAUSE THE BORROWED SHARES EVENTUALLY MUST BE BOUGHT BACK FLUCTUATION IN SHORT INTEREST OF CERTAIN STOCKS ALSO MAY BE CAUSED PARTLY BY ARBITRAGING FIGURES OCCASIONALLY INCLUDE INCOMPLETE TRANSACTIONS IN RESTRICTED STOCK THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO ALSO CONTINUED TO SEESAW FALLING TO 372 FROM 386 AT MIDAPRIL BUT LITTLE CHANGED FROM 37 AT MIDMARCH THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY NEW YORK EXCHANGE VOLUME FOR THE 21 TRADING DAYS WAS 266672047 SHARES SOME ANALYSTS SUGGEST HOWEVER THAT THE RATIO HAS WEAKENED IN VALUE AS AN INDICATOR BECAUSE OPTIONS AND OTHER PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS 9305210061 930521 BUSINESS BRIEF GENZYME CORP APPLICATION FILED FOR FORM OF DRUG FOR GAUCHER DISEASE GENZYME CORP CAMBRIDGE MASS SAID IT FILED A NEW DRUG APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR A GENETICALLY ENGINEERED FORM OF THE DRUG FOR TREATING GAUCHER DISEASE GENZYME'S CEREDASE A TREATMENT DERIVED FROM PLACENTAL TISSUE IS THE ONLY APPROVED TREATMENT FOR GAUCHER DISEASE A DEBILITATING ILLNESS THAT AFFECTS 4000 TO 6000 PEOPLE WORLDWIDE CEREDASE CURRENTLY COSTS ABOUT 140000 A YEAR FOR THE AVERAGE PATIENT DOWN FROM 280000 A YEAR WHEN IT WAS INTRODUCED IN 1991 A GENZYME SPOKESWOMAN SAID GENZYME DEVELOPED RECOMBINANT GLUCOCEREBROSIDASE THE GENETICALLY ENGINEERED TREATMENT BECAUSE OF THE SCARCITY OF THE TISSUE DERIVED PRODUCT SHE SAID THAT BY 1995 WHEN GENZYME EXPECTS THE RECOMBINANT PRODUCT TO BE WIDELY AVAILABLE A YEAR'S TREATMENT IS LIKELY TO COST 60000 BECAUSE DOCTORS ARE GETTING BETTER AT TREATING THE DISEASE WITH SMALLER DOSES OF CEREDASE SHE DECLINED TO COMMENT ON PRICING FOR THE RECOMBINANT PRODUCT 9305210060 930521 TRAVEL STAFF'S FIRING BY CLINTON RAISES QUESTIONS THOMASON ROLE PLACEMENT OF PRESIDENT'S COUSIN LEAVE SOME CONCERNED BY MICHAEL K FRISBY AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S FIRING OF THE WHITE HOUSE TRAVEL STAFF HAS PROMPTED QUESTIONS OVER WHETHER IT WAS A POLITICAL MANEUVER WHILE REVIEWS OF THE OFFICE'S ACTIVITIES CONTINUED WHITE HOUSE AIDES ACKNOWLEDGED THAT TELEVISION PRODUCER HARRY THOMASON HAD COMPLAINED TO DAVID WATKINS THE HEAD OF THE WHITE HOUSE OFFICE OF ADMINISTRATION THAT SOME COLLEAGUES IN THE AIRPLANE CHARTER INDUSTRY WERE UPSET THAT THEY WEREN'T ALLOWED TO BID ON THE WHITE HOUSE TRIPS MR THOMASON A FRIEND OF MR CLINTON'S IS IN THE CHARTERING BUSINESS HIMSELF THE ROLE OF MR THOMASON THE PLACEMENT OF A 25YEAROLD DISTANT COUSIN OF MR CLINTON TO WORK IN THE WHITE HOUSE TRAVEL OFFICE AND MR WATKINS'S RELATIONSHIP WITH THE LITTLE ROCK ARK TRAVEL AGENCY THAT WILL TEMPORARILY ASSIST THE WHITE HOUSE HAS CLOUDED THE FIRINGS WITH QUESTIONS OF CRONYISM MR WATKINS WORKED WITH THE TRAVEL AGENCY'S OWNER AT A BANK HOLDING COMPANY IN THE 1970S AND THE AGENCY WAS A CLIENT OF HIS WHEN HE WORKED IN ADVERTISING MISSOURI SEN CHRISTOPHER BOND THE RANKING REPUBLICAN ON A GOVERNMENT APPROPRIATIONS SUBCOMMITTEE ASKED IN A LETTER TO THE PRESIDENT THAT THE AUDIT ON THE OFFICE BE MADE AVAILABLE TO HIS COMMITTEE I AM CONCERNED ABOUT A DEVELOPING PATTERN OF EXPERIENCED PUBLIC SERVANTS BEING FIRED TO MAKE ROOM FOR YOUNG POLITICAL APPOINTEES MR BOND WROTE THE WHITE HOUSE HAS PUBLICLY ACCUSED THE OFFICE OF SHODDY ACCOUNTING PRACTICES AND OFFICIALS FAMILIAR WITH THE FEDERAL BUREAU OF INVESTIGATION'S INQUIRY INTO THE MATTER HAVE CITED POTENTIAL PROBLEMS WITH OVERCHARGING OF THE MEDIA FOR FLIGHTS POOR RECORDS OF PETTYCASH EXCHANGES AND QUESTIONS OF WHETHER ANY KICKBACKS FROM VENDORS WERE INVOLVED SEVERAL OF THE WORKERS REACHED BY REPORTERS HAVE DENIED ANY WRONGDOING BILLY DALE WHO RAN THE OFFICE TOLD THE ASSOCIATED PRESS THAT THE OFFICE TRIED TO KEEP DOWN COSTS BUT BLAKE FLEETWOOD WHO OPERATES PLANETARIUM/AMERICAN EXPRESS A NEW YORK TRAVEL AGENCY SAID AN EXPERIENCE THAT HE HAD IN OCTOBER TELLS A DIFFERENT STORY A CLIENT WHO WORKED IN THE BUSH WHITE HOUSE CALLED HIM AFTER GETTING A 1800 ROUND TRIP PLANE TICKET FROM WASHINGTON TO LOS ANGELES FROM THE TRAVEL OFFICE MR FLEETWOOD SAID THE CLIENT ASKED IF HE COULD GET ONE CHEAPER AND THE AGENCY OFFERED THE TRAVEL OFFICE A TICKET FOR 600 EVEN THOUGH THE CUSTOMER WANTED IT THEY SAY NO WE ALWAYS BOOK FULL FARE' SAID MR FLEETWOOD HE SAID THE TRAVEL OFFICE HAD OBTAINED A TOTALLY UNRESTRICTED SEAT THE TYPE OF TICKET THAT ROUGHLY 2 OF AIRLINE TRAVELERS PURCHASE AS THE NEW TRAVEL OFFICE TOOK CHARGE THE WHITE HOUSE SOUGHT BIDS TO PROVIDE THE CHARTER TO CARRY THE PRESS ON A TRIP TO NEW HAMPSHIRE TOMORROW WITH PRESIDENT CLINTON HOUSTONBASED ULTRAIR INC WHICH HAD BEEN PROVIDING THE SERVICE FOR THE TRAVEL OFFICE BID 41540 BUT MIDWEST EXPRESS WAS CHOSEN AFTER SUBMITTING A BID OF 33547 MIDWEST EXPRESS WILL SUPPLY A PLANE THAT HAS ROUGHLY 84 FIRSTCLASS SEATS WHILE THE ULTRAIR PLANE HAD TYPICAL FIRSTCLASS AND COACH SECTIONS ACCORDING TO THOSE FAMILIAR WITH THE CASE WHITE HOUSE OFFICIALS ARE PARTICULARLY INTERESTED IN LEARNING MORE ABOUT THE BUSINESS DEALINGS OF A CHARLES CAUDLE A FORMER PAN AMERICAN AIRWAYS PILOT AND TENNESSEEBASED ENTREPRENEUR AFTER PAN AM WENT OUT OF BUSINESS IN 1991 MR CAUDLE AND OTHER INVESTORS ORGANIZED A CHARTER AIRLINE KNOWN AS AIRLINE OF THE AMERICAS INC WHICH LAST YEAR BEGAN CARRYING THE PRESS ON PRESIDENTIAL TRIPS THE STARTUP CARRIER SUBSEQUENTLY RENAMED ULTRAIR IS NOW PROVIDING SCHEDULED FIRSTCLASS SERVICE BETWEEN HOUSTON AND NEWARK NJ THE INVESTIGATION ACCORDING TO OFFICIALS FAMILIAR WITH IT IS LOOKING INTO WHETHER AN ULTRAIR EXECUTIVE APPROACHED ANOTHER CHARTER COMPANY INDICATING THAT HE COULD GET THE WHITE HOUSE BUSINESS FOR THAT COMPANY IF IT GAVE HIM A JOB MR CAUDLE WHO LEFT ULTRAIR IN FEBRUARY AND FORMED AN AIRCHARTER OPERATION SAID HE APPROACHED FOUR AIRLINES ABOUT LEASING AIRCRAFT AND FLIGHT CREWS FOR CHARTER FLIGHTS THE DISCUSSIONS ALSO INCLUDED WHETHER THEY HAD PLANES WITH PROPER SEATING FOR WHITE HOUSE CHARTERS BUT NONE DID MR CAUDLE SAID HE DENIED SEEKING A JOB FROM ANY OF THE CARRIERS 9305210059 930521 BUSINESS BRIEF PULSE ENGINEERING INC FIRM SEES 4THQUARTER SALES FALLING FROM PRIOR PERIOD PULSE ENGINEERING INC SAID IT EXPECTS SALES FOR THE FISCAL FOURTH QUARTER TO BE BELOW THE PREVIOUS QUARTER'S BECAUSE OF PROBLEMS IN MOVING PRODUCTION TO CHINA AND SLOWERTHANEXPECTED SALES FOR THE THIRD QUARTER ENDED MARCH 28 PULSE HAD SALES OF 165 MILLION WHILE NET INCOME WAS 14 MILLION OR 21 CENTS A SHARE THE SAN DIEGO MAKER OF ELECTRONIC PARTS FOR TELECOMMUNICATIONS AND DATAPROCESSING EQUIPMENT SAID THAT WHILE THE ORDERS OUTLOOK IS IMPROVING COMPLICATIONS IN MOVING MANUFACTURING OPERATIONS FROM MEXICO TO CHINA HAVE RESULTED IN SCHEDULING DIFFICULTIES THOSE PROBLEMS ARE EXPECTED TO BE RESOLVED IN THE NEXT QUARTER THE COMPANY SAID ANOTHER PROBLEM HAS BEEN RESCHEDULING OF ORDERS BY SOME CUSTOMERS BECAUSE OF SLOWERTHANEXPECTED ACCEPTANCE OF KEY TECHNOLOGIES 9305210058 930521 BUSINESS BRIEF TRITON ENERGY CORP TEST RESULTS OF THREE WELLS IN COLOMBIA ARE REPORTED TRITON ENERGY CORP DALLAS REPORTED THE TEST RESULTS OF THREE COLOMBIAN WELLS THE CUPIAGUA1 WELL CONFIRMED THE PRESENCE OF THREE HYDROCARBONBEARING ZONES THE THREE FORMATIONS FOUND IN THE CUPIAGUA FIELD AND TESTED ON A 5/8INCH OPENING FLOWED 7215 BARRELS OF OIL A DAY AND 267 MILLION CUBIC FEET OF GAS THE CUSIANA3 WELL FOUND IN THE CUSIANA FIELD AND TESTED ON A 1/2INCH OPENING FLOWED 2620 BARRELS OF OIL AND THREE MILLION CUBIC FEET OF GAS THE BUENOS AIRES2 WELL ALSO FOUND IN THE CUSIANA FIELD TESTED ON A 5/8INCH OPENING FLOWED 3590 BARRELS A DAY AND 44 MILLION CUBIC FEET OF GAS TRITON SAID IT FILED WITH THE COLOMBIAN GOVERNMENT FOR COMMERCIALIZATION OF THE CUSIANA/CUPIAGUA FIELDS AND IT EXPECTS A RESPONSE WITHIN TWO MONTHS THE WELLS ARE OPERATED BY BRITISH PETROLEUM PLC IN LONDON WHICH HAS A 38 STAKE IN THE ENTERPRISE TOTAL SA A FRENCH OIL AND GAS CONCERN HAS ANOTHER 38 INTEREST IN THE WELLS TRITON OWNS THE REMAINING 24 UNDER COLOMBIAN LICENSING TERMS THE STATE OIL COMPANY ECOPETROL HAS THE RIGHT TO BUY A 50 INTEREST IN THE WELLS AFTER COMMERCIALIZATION 9305210057 930521 BUSINESS BRIEF TORAY INDUSTRIES INC JAPAN FIRM'S PRETAX PROFIT DECLINED 15 FOR FISCAL YEAR TORAY INDUSTRIES INC A JAPANESE MAKER OF SYNTHETIC FIBERS REPORTED THAT CONSOLIDATED PRETAX PROFIT FELL 15 IN THE FISCAL YEAR ENDED MARCH 31 FROM THE SAME PERIOD A YEAR EARLIER LARGELY BECAUSE OF LOSSES IN ITS SUBSIDIARIES AND THE YEN'S APPRECIATION IN FOREIGN CURRENCY MARKETS PRETAX PROFIT TOTALED 5496 BILLION YEN 4967 MILLION DOWN FROM 6451 BILLION YEN AS SALES SLIPPED 06 TO 97047 BILLION YEN FROM 97674 BILLION YEN NET INCOME EDGED DOWN 31 TO 2686 BILLION YEN FROM 2772 BILLION YEN FOR THE CURRENT FISCAL YEAR TORAY SAID IT EXPECTS ITS OVERSEAS INVESTMENTS TO PAY OFF BOOSTING THE GROUP'S SALES AND HELPING TO OFFSET DECLINES SEEN IN THE CONTINUING SEVERE DOMESTIC ECONOMY THE COMPANY PREDICTED THAT ITS CONSOLIDATED PRETAX PROFIT IN FISCAL 1993 WOULD REACH ABOUT 56 BILLION YEN WITH ITS NET PROFIT AT 28 BILLION YEN AND SALES OF 980 BILLION YEN 9305210056 930521 BUSINESS BRIEF TURNER BROADCASTING SYSTEM INC CNN AND TELEMUNDO GROUP END BROADCAST PARTNERSHIP CABLE NEWS NETWORK AND TELEMUNDO GROUP INC ARE ENDING THEIR PARTNERSHIP TO GENERATE SPANISHLANGUAGE NEWS BROADCASTS AS CNN BACKS AWAY FROM TELEMUNDO'S EFFORTS TO CREATE A MORE EXTENSIVE SERVICE CNN IS A UNIT OF ATLANTABASED TURNER BROADCASTING SYSTEM INC TELEMUNDO A SPANISHLANGUAGE NETWORK BASED IN NEW YORK SAID IT WILL PRODUCE ITS OWN TWICEDAILY NEWSCAST TO REPLACE THE SPECIAL SPANISHLANGUAGE CNN NEWSCASTS IT HAS RECEIVED SINCE 1988 TELEMUNDO SAID IT WILL USE A REUTERS TELEVISION FEED INSTEAD TO SUPPLY INTERNATIONAL NEWS ALONG WITH ITS OWN CORRESPONDENTS AND ITS OWN ANCHOR RAUL PEIMBERT A TELEMUNDO SPOKESMAN SAID THE COMPANY HAS BEEN TRYING TO ASSERT MORE EDITORIAL CONTROL OVER THE NEWS BROADCASTS BUT FOUND THAT DIFFICULT TO DO TELEMUNDO PLANS TO PRODUCE ITS NEWSCASTS FROM MIAMI WHEN ITS CONTRACT WITH CNN EXPIRES MAY 31 9305210055 930521 REVIEW & OUTLOOK EDITORIAL CLINTON LOOKS BUSHED BILL CLINTON IS BEGINNING TO REMIND US OF GEORGE BUSH WE MEAN THE POST NONEWTAXES BUSH THE ONE WHO DECIDED THERE WAS NOTHING MORE IMPORTANT IN THE WORLD THAN THAT THE BUDGET DEFICIT SHOULD SOMEHOW FALL THAT RAISING PEOPLE'S TAXES WAS THE TOUGH BUT NECESSARY WAY TO GO THAT THE TURMOIL AND DIVISION THIS CREATED IN HIS OWN PARTY WAS IRRELEVANT THAT THE FACT THAT HIS OWN PARTY REVOLTED TO VOTE AGAINST HIS TAX INCREASES DIDN'T MATTER THAT HIS PLUMMETING DOMESTIC POPULARITY WAS ALSO UNIMPORTANT AND THAT AS HE SAID FROM THE BRIDGE OF HIS SINKING SHIP DAYS BEFORE THE ELECTION I THINK WE'RE GOING TO WIN THIS THING OF HIS TAX PACKAGE THAT IS DYING BY THE HOUR BILL CLINTON SAID WEDNESDAY I THINK WE CAN PASS IT THE PRESIDENT NO DOUBT FOUND COMFORT YESTERDAY MORNING IN RATHER HOPEFUL HEADLINES THAT HE HAD PUT DOWN A DEMOCRATIC REVOLT IN THE HOUSE WITHIN HOURS THOUGH THE REVOLT HAD SPREAD TO DEMOCRATS IN THE SENATE LOUISIANA'S BENNETT JOHNSTON SAID OF THE BTU TAX IT WILL NOT SUCCEED BECAUSE IT WILL NOT GET THE VOTES THEN OKLAHOMA'S DAVID BOREN AND OTHER SENATORS ANNOUNCED AN ALTERNATIVE PLAN THAT WOULD SCRAP THE ENERGY TAX AND DELAY THE TAX INCREASES ON INDIVIDUALS AND CORPORATIONS LOOKS TO US LIKE IT'S TIME FOR THE WHITE HOUSE TO WAKE UP AND SMELL THE COFFEE THE WHITE HOUSE MAY THINK IT CAN MUSCLE THESE TAXES THROUGH A GAGGED HOUSE SEE THE EDITORIAL BELOW BUT CLEARLY FORCES MORE POWERFUL THAN TOM FOLEY HAVE BEEN BROUGHT TO THE SURFACE BY MR CLINTON'S TAX PROPOSALS THE AMERICAN PEOPLE ARE FORGIVING OF THEIR PRESIDENTS BUT WE'VE LEARNED IN RECENT YEARS THAT THERE ARE SOME THINGS THEY WON'T FORGIVE ONE THING THEY WON'T FORGIVE IS MINDLESS TAX INCREASES IN OUR TIME A MINDLESS TAX INCREASE IS ONE THAT SAYS IT IS BEING DONE TO REDUCE THE DEFICIT THERE CAN'T BE 10 PEOPLE BEYOND WALL STREET WHO BELIEVE THAT HOKUM ANYMORE NEW TAXES NEVER REDUCE DEFICITS THEY INITIATE MORE SPENDING MR CLINTON HIMSELF CLEARLY SENSED THE PUBLIC'S SUSPICIONS BECAUSE LAST WEEK HE PROPOSED HIS TRUSTME TRUST FUND PURPORTING TO ENSURE THAT HIS BILLIONS IN NEW TAXES WOULD BE DEDICATED TO DEFICIT REDUCTION THAT OBVIOUSLY DESPERATE EFFORT TO SAVE HIS TAX INCREASES BRINGS US TO THE SECOND THING VOTERS WILL NO LONGER FORGIVE A PRESIDENCY THAT SEEMS INCAPABLE OF A REALITY CHECK WHEN THE BUSH PRESIDENCY SPENT ITS LAST 18 MONTHS HEADED FOR THE CLIFF DESPITE SCREAMS TO STOP FROM INSIDE AND OUTSIDE THE WHITE HOUSE THE VOTERS SOUGHT SAFETY IN MR CLINTON OR IN ROSS PEROT IN AN EERIE REPRISE OF THIS SCENARIO AN IMMINENT US SENATE ELECTION IN TEXAS HAS INCUMBENT DEMOCRAT BOB KRUEGER IN THE DOOMED ROLE OF GEORGE BUSH AND GOP CHALLENGER KAY BAILEY HUTCHISON PLAYING BILL CLINTON SHE'S AHEAD THE REALITIES NOW ENVELOPING THE CLINTON PRESIDENCY INCLUDE CENTRIST AND CONSERVATIVE DEMOCRATS IN A STATE OF REVOLT OVER HIS TAX INCREASES ROSS PEROT FLATLY CALLING IT TAX AND SPEND PUBLIC OPINION POLLS SHOWING HUGE RESISTANCE TO THE TAX PACKAGE AND REGULAR LEAKS FROM HILLARY'S OPERATION FLOATING ONE NEW TAX SCHEME AFTER ANOTHER TO SUPPORT WHAT IS APPARENTLY GOING TO BE A COSTLY HEALTH REFORM WE HAVE A MODEST PROPOSAL FOR THE PRESIDENT PULL THE TAX PACKAGE OFF THE TABLE PULL THE TAX PACKAGE AND ANNOUNCE THAT HE'S GOTTEN THE MESSAGE THE STRONGEST POLITICAL CONSENSUS IN THE SYSTEM RIGHT NOW IS FOR A BUDGET THAT CONSISTS SOLELY OF DEEP AND SIGNIFICANT CUTS IN FEDERAL SPENDING THE PRESIDENT SHOULD DELIVER EXACTLY THAT TO CAPITOL HILL AND THEN CHALLENGE THE DEMOCRATS AND REPUBLICANS TO PUT UP OR SHUT UP WHATEVER THE SINCERITY OF MR CLINTON'S DESIRE FOR INVESTMENT SPENDING AND THE LIKE THERE ARE GOOD REASONS FOR PASSING A CUTS ONLY BUDGET BEYOND THE LIBERATING EFFECT IT WOULD HAVE ON ECONOMIC ACTIVITY IT WOULD ESTABLISH POLITICAL CREDIBILITY THAT SIMPLY DOESN'T EXIST NOW THE PUBLIC HAS BECOME COMPLETELY CYNICAL ABOUT WASHINGTON'S INTENTIONS AND FOR MR CLINTON WITH HIS 43 MANDATE TO THINK THAT PEOPLE WOULD SOMEHOW BELIEVE IN HIS TAX INCREASES REFLECTS A WISHFUL ALMOST PETER PANLIKE MISREADING OF OUR CURRENT POLITICS CUTTING DEALS AND CAVING IN FROM ONE END OF CONGRESS TO THE OTHER TO GET A WIN WILL ONLY WORSEN THE CYNICISM IT WOULD BE SO MUCH BETTER IF JUST ONCE A PRESIDENT WOULD PROVE TO THE AMERICAN PEOPLE THAT HE CAN DO THE SPENDING CUTS IN A WAY THAT ALLOWS PEOPLE TO RECOGNIZE THEM AS GENUINE FEDERAL FRUGALITY THEN MAYBE THE PUBLIC WILL ENTERTAIN HIS SPENDING GOALS OR HIS HEALTH CARE REFORM NO DOUBT MR CLINTON'S ADVISERS WILL SAY THAT HE CAN'T DO ONLY SPENDING CUTS BECAUSE THAT WILL INFLAME THE BLACK CAUCUS AND THE REST OF HIS LIBERAL CONSTITUENCY BASE POSSIBLY THAT'S TRUE BUT IF THESE INTERESTS RATHER THAN THE BROADER PUBLIC ARE INDEED THE BEDROCK OF THIS PRESIDENCY'S STRENGTH THERE IS LITTLE HOPE FOR ITS FUTURE 9305210054 930521 BUSINESS BRIEF CIPSCO INC UNIT CHARGING SLOWDOWN LOCKS OUT UNION WORKERS CIPSCO INC SPRINGFIELD ILL SAID ITS CENTRAL ILLINOIS PUBLIC SERVICE CO UNIT LOCKED OUT 1500 UNIONIZED WORKERS AFTER THE EMPLOYEES LAUNCHED A WORK SLOWDOWN DURING A CONTRACT DISPUTE THE UTILITYHOLDING COMPANY'S CONTRACTS WITH THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS EXPIRED IN MID1992 THE UNIONS HAVE BEEN WORKING UNDER THE TERMS OF THE OLD CONTRACTS THE LATEST EXTENSION EXPIRED APRIL 24 SINCE THEN THE COMPANY SAID IT HAS BECOME APPARENT THAT EMPLOYEES REPRESENTED BY THE BARGAINING UNITS HAVE ENGAGED IN A WORK SLOWDOWN THE COMPANY SAID IT RELUCTANTLY DECIDED TO BAR THE WORKERS AND TO OPERATE ITS GAS AND ELECTRIC SERVICE USING MANAGEMENT AND NONUNION WORKERS IN WEST FRANKFORT ILL LOCAL 702 OF THE IBEW SAID THE COMPANY HADN'T EVER NOTIFIED THE UNION OF ANY PROBLEMS REGARDING A SLOWDOWN OR REFUSAL OF OVERTIME THERE WAS NO SLOWDOWN SAID A UNION OFFICIAL IN AN INTERVIEW 9305210052 930521 BUSINESS BRIEF BANC ONE CORP OHIO CONCERN WILL ACQUIRE OKLAHOMA BANKING GROUP BANC ONE CORP EXPANDING ITS FOOTHOLD IN THE WEST SAID IT AGREED TO ACQUIRE OKLAHOMA'S SEVENTHLARGEST BANK CLOSELY HELD CENTRAL BANKING GROUP OF OKLAHOMA CITY THE STOCKSWAP ACQUISITION VALUED AT 104 MILLION MARKS BANC ONE'S FIRST ENTRY INTO THAT STATE AND COMES JUST ONE MONTH AFTER BANC ONE BOUGHT THE NO 2 BANK IN NEBRASKA FIRSTIER FINANCIAL INC CENTRAL BANK HOLDING WHICH OPERATES SEVEN BANKING OFFICES AND CENTRAL FINANCIAL INSURANCE CO OF OKLAHOMA HAD 541 MILLION OF ASSETS AS OF MARCH 31 BANC ONE THE NATION'S NO 7 BANK HAD ASSETS OF 70 BILLION AS OF MARCH 31 THE ACQUISITION OF CENTRAL BANKING WOULD BRING COLUMBUS OHIOBASED BANC ONE'S TOTAL HOLDINGS TO 78 BANKS WITH 1340 OFFICES NATIONWIDE 9305210051 930521 ECONOMY NEW JOBS BILL GAINS BACKING IN HOUSE PANEL MEASURE OF ABOUT 1 BILLION SATISFIES CLINTON'S AIMS BIDS FOR OFFSETTING CUTS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ENDING WEEKS OF STALEMATE THE HOUSE APPROPRIATIONS COMMITTEE LEADERSHIP ENDORSED AN ESTIMATED 1 BILLION JOBS BILL TAILORED TO FUND INITIATIVES SOUGHT BY PRESIDENT CLINTON AND SATISFY CONSERVATIVES DEMANDING OFFSETTING CUTS THE CORE ELEMENTS ARE 920 MILLION FOR SUMMER JOBS AND PUBLICWORKS PROGRAMS BACKED BY THE ADMINISTRATION AS WELL AS INCREASED AID TO STATES AND CITIES FOR COMMUNITY POLICE SERVICES ADDITIONAL MONEY MAY BE ADDED FOR THE SMALL BUSINESS ADMINISTRATION AND AMTRAK BEFORE THE LEGISLATION IS BROUGHT TO THE HOUSE FLOOR NEXT WEEK IN TANDEM WITH A SEPARATE 18 BILLION SPENDING BILL ALREADY REPORTED FROM THE APPROPRIATIONS PANEL INSTEAD OF THE ACROSSTHEBOARD SPENDING CUT PROPOSED BY THE WHITE HOUSE TO PAY FOR THE NEW SPENDING THE BILL WOULD RELY ON A SERIES OF SPECIFIC REDUCTIONS FROM EXISTING APPROPRIATIONS HOUSING AND SPACE FUNDS WOULD BE PARED TO HELP OFFSET THE COST OF ABOUT 400 MILLION FOR WASTEWATER PROJECTS OVERSEEN BY THE ENVIRONMENTAL PROTECTION AGENCY FOR EXAMPLE AND MORE THAN A DOZEN ACCOUNTS INCLUDING SEVERAL IN EDUCATION WOULD BE TARGETED TO PAY FOR 320 MILLION SOUGHT BY THE PRESIDENT FOR SUMMER JOBS THOUGH FINAL DETAILS REMAIN UNRESOLVED THE COMMITTEE LEADERSHIP SIGNALED A FIRM COMMITMENT BOTH TO THE OUTLINES OF THE BILL AND THE NEED TO FIND SAVINGS TO OFFSET THE COSTS THE CLOSEDDOOR SESSION FOLLOWED A PRIVATE DINNER EARLIER THIS WEEK BETWEEN MANY OF THE SAME DEMOCRATS AND BUDGET DIRECTOR LEON PANETTA WHO HAD BEEN FRUSTRATED IN EFFORTS TO REACH SOME AGREEMENT WITH THE PROUD PANEL ON FINANCING THE PACKAGE THE DETAILED EXERCISE UNDERTAKEN BY THE COMMITTEE IS A SMALL MINIATURE OF THE CHOICES AHEAD AS BOTH SIDES WRESTLE WITH MR CLINTON'S BUDGET FOR THE FISCAL YEAR BEGINNING OCT 1 THE ADMINISTRATION HAS ASKED FOR AT LEAST 68 BILLION MORE IN DIRECT SPENDING THAN PERMITTED UNDER APPROPRIATIONS CEILINGS SET IN THE SPRING BUDGET RESOLUTION AND DEMOCRATS FACE IMMENSE DIFFICULTIES IN SATISFYING BOTH THE NEW PRESIDENT'S AMBITIOUS DOMESTIC AGENDA AND HIS PROMISE OF MORE THAN 18 BILLION IN NEW RUSSIAN AID MR CLINTON'S INVESTMENT INITIATIVES EQUAL ALMOST THE ENTIRE OVERRUN AND THOUGH THE RUSSIAN ASSISTANCE PACKAGE WOULD BEGIN IN THE CURRENT FISCAL YEAR ENDING SEPT 30 THE BUDGET IMPACT IS SURE TO SPILL OVER INTO THE FOLLOWING FISCAL YEAR IN A CLOSEDDOOR MEETING THIS WEEK THE HOUSE APPROPRIATIONS LEADERSHIP AGREED TO SPENDING ALLOCATIONS THAT WILL PROVIDE THE FRAMEWORK FOR THE COMING DEBATE THE NUMBERS ENSURE THAT ALMOST ALL SUBCOMMITTEES WILL HAVE LESS IN DISCRETIONARY SPENDING THAN MR CLINTON REQUESTED DIRECT PENTAGON OUTLAYS WOULD BE HELD TO 2556 BILLION OR 23 BILLION BELOW THE ADMINISTRATION'S REQUEST AND FOREIGN AID DISCRETIONARY SPENDING THOUGH HIGHER THAN THE CURRENT YEAR WOULD BE HELD TO 139 BILLION OR ALMOST 350 MILLION BELOW THE ADMINISTRATION'S REQUEST DISCUSSIONS HAVE BEGUN ON POSSIBLY TAPPING SOME DEFENSE FUNDS THIS YEAR TO HELP FINANCE THE RUSSIANAID REQUEST BUT ABSENT SOME AGREEMENT WITH CONGRESS TO DO SO THERE ARE INSUFFICIENT FUNDS TO FINANCE THE PROPOSED ASSISTANCE THE SITUATION IS AN IMMENSE FRUSTRATION TO REP DAVID OBEY D WIS A SUBCOMMITTEE CHAIRMAN WHO RARELY HAS PROTESTED CUTS IN FOREIGN AID YET THE SAME SQUEEZE IS BEING FELT IN AN ARRAY OF DOMESTIC ACCOUNTS INCLUDING THE HEALTH AND HUMAN SERVICES PROGRAMS THAT HAVE BEEN MR OBEY'S FIRST PRIORITY IN THE PAST FOR EXAMPLE THE PROPOSED HOUSE ALLOCATIONS WOULD PERMIT LESS THAN 683 BILLION IN DIRECT OUTLAYS FOR DISCRETIONARY SPENDING BY THE LABOR EDUCATION AND HEALTH AND HUMAN SERVICES DEPARTMENTS 13 BILLION BELOW THE PRESIDENT'S REQUEST AND THE LEADERSHIP HAS SET A GOAL OF CUTTING MORE THAN 890 MILLION FROM THE ADMINISTRATION'S BUDGET FOR HOUSING VETERANS SPACE AND ENVIRONMENTAL PROGRAMS TRANSPORTATION PROGRAMS AND NATURAL RESOURCES ACCOUNTS WHICH RECEIVE ALLOCATIONS OF 347 BILLION AND 137 BILLION RESPECTIVELY ALSO WOULD BE CUT BELOW THE PRESIDENT'S REQUEST ALTHOUGH TO A LESSER DEGREE AND MAJOR INCREASES SOUGHT BY THE ADMINISTRATION IN COMMERCE DEPARTMENT SPENDING MUST BE TEMPERED TO STAY WITHIN THE 232 BILLION ALLOTTED FOR IT AND THE DEPARTMENTS OF STATE AND JUSTICE THE FIGURES REFLECT AN UNDERLYING TENSION AMONG DEMOCRATS AND MR CLINTON OVER WHAT PRIORITY TO GIVE TO CUTTING THE DEFICIT AS OPPOSED TO MAKING PUBLIC INVESTMENTS IN THE ECONOMY THERE IS A DICHOTOMOY BETWEEN THOSE WHO WANT DEFICIT REDUCTION AT ANY COST AND THOSE WHO CAN LIVE WITH DEFICIT REDUCTION BUT NEED JOBS SAID REP BOBBY RUSH D ILL A CHICAGO FRESHMAN AND FORMER BLACK PANTHER IN A DISTRICT LIKE MINE I HAVE TO HAVE JOBS 9305210050 930521 BUSINESS BRIEF JAN BELL MARKETING INC COMPANY REPORTS NET LOSS IN 1ST PERIOD OF 102 MILLION JAN BELL MARKETING INC POSTED A 102 MILLION FIRSTQUARTER NET LOSS AFTER AN 181 MILLION ONETIME CHARGE RELATED TO THE COMPANY'S ATTEMPT TO CONVERT FROM A DISTRIBUTOR TO A RETAILER OF GOODS AT WHOLESALECLUB STORES THE SUNRISE FLA COMPANY WHICH SAID IT PREVIOUSLY SOLD JEWELRY AND OTHER ITEMS TO SAM'S WHOLESALE CLUB STORES AND SIMILAR OUTLETS SAID THE CHARGE COVERS THE COST OF REPURCHASING GOODS FROM SAM'S A UNIT OF WALMART STORES INC JAN BELL SAID IT WILL INCUR FUTURE EXPENSES OF AS MUCH AS 5 MILLION AS IT SETS UP LEASED DEPARTMENTS WITHIN SAM'S STORES THE FIRSTQUARTER LOSS TRANSLATED TO 40 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY REPORTED NET INCOME OF 14 MILLION OR SIX CENTS A SHARE EXCLUDING THE 181 MILLION PRETAX CHARGE THE COMPANY HAD NET OF 12 MILLION OR FIVE CENTS A SHARE SALES ROSE 14 TO 456 MILLION FROM 40 MILLION IN THE FIRST QUARTER OF 1992 9305210049 930521 INTERNATIONAL COMPANIES IN JAPAN FIND REASONS NOT TO CUT PRICES DESPITE YEN'S STRENGTH BY YUMIKO ONO AND JOHN BUSSEY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO IF PRESIDENT CLINTON IS COUNTING ON A STRONGER YEN TO GIVE US BUSINESS A LEG UP IN JAPAN HE MAY WANT TO RECALL WHAT HAPPENED IN THE US AUTO INDUSTRY IN THE MID1980S IN 1985 THE WORLD'S INDUSTRIALIZED COUNTRIES AGREED IN THE SOCALLED PLAZA ACCORD TO DELIBERATELY FORCE UP THE VALUE OF THE YEN A PROCESS THAT CONTINUES TODAY THIS IMMEDIATELY MADE JAPANESE PRODUCTS MORE EXPENSIVE IN DOLLAR TERMS IN THE US AND GAVE AMERICA'S BIG THREE AUTO MAKERS AN OPPORTUNITY TO RECAPTURE US MARKET SHARE LOST TO TOYOTA MOTOR CORP NISSAN MOTOR CO AND HONDA MOTOR CO ALL THE AMERICAN COMPANIES HAD TO DO WAS HOLD THEIR OWN PRICES STEADY BUT THE BIG THREE INSTEAD OPTED FOR QUICK PROFITS AND RAISED THEIR PRICES RIGHT ALONG WITH THE JAPANESE NOT SURPRISINGLY THEIR MARKET SHARE ERODED FURTHER NOW A SIMILAR SCENARIO COULD BE PLAYING OUT IN JAPAN THOUGH IT'S STILL EARLY AN INFORMAL SURVEY OF US COMPANIES IN JAPAN FINDS MOST NOT LOWERING THEIR PRICES EVEN THOUGH THE YEN HAS JUMPED 11 AGAINST THE DOLLAR THIS YEAR WHICH SHOULD MAKE US PRODUCTS SOLD IN JAPAN CHEAPER IN YEN TERMS THE YEN'S LATEST APPRECIATION HAS BEEN FUELED IN PART BY CLINTON ADMINISTRATION COMMENTS SUPPORTING A STRONGER JAPANESE CURRENCY BECAUSE SO MANY CONSUMERS AND BUREAUCRATS HAVE COMPLAINED JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY HAS STARTED TRACKING 18 US PRODUCTS FROM PERFUME TO PASSENGER CARS TO SEE IF THEIR PRICES IN YEN COME DOWN IF THE CURRENT TREND HOLDS THOUGH MR CLINTON MAY FIND HIS HOPES FOR GREATER US SALES IN JAPAN FRUSTRATED AT LEAST IN THE NEAR TERM WHY THE HESITATION TO SLASH PRICES SOME COMPANIES SUCH AS APPLE JAPAN INC A UNIT OF APPLE COMPUTER INC AND SUN MICROSYSTEMS INC SAY THEY SIMPLY AREN'T BENEFITING FROM THE STRONG YEN APPLE AND SUN SAY THEY PURCHASE MANY OF THEIR COMPUTER PARTS IN JAPAN NOT THE US THOSE PARTS HAVE BECOME MORE EXPENSIVE IN DOLLAR TERMS AS THE YEN HAS STRENGTHENED THE JAPANESE OPERATION OF POLO/RALPH LAUREN CORP SAYS THAT AS FAR AS IT IS CONCERNED THE YEN'S STRENGTH IS A MOOT POINT BECAUSE THE CLOTHES IT SELLS IN JAPAN ARE MADE IN JAPAN NOT IMPORTED US COMPANIES' JAPANESE DISTRIBUTION NETWORKS ALSO COMPLICATE PRICING GENERAL MOTORS CORP'S JAPANESE UNIT SAYS THAT EVEN IF IT WANTED TO CUT DEALS ON ITS USMADE CARS IT'S IN NO POSITION TO DO SO PRICES ARE ESTABLISHED BY YANASE & CO GM'S JAPANESE DISTRIBUTOR A YANASE SPOKESMAN SAYS THE IMPORTER WON'T REDUCE PRICES OF THE 1993 MODELS IT'S SELLING BECAUSE IT ORDERED MOST OF THEM LAST FALL WHEN THE YEN WAS WEAKER WHETHER THE YEN IS HIGH OR LOW NOW WE'VE DECIDED ON ONE PRICE WE'RE NOT GOING TO CHANGE THAT HE SAYS THE SPOKESMAN ADDS THOUGH THAT YANASE MAY CONSIDER LOWERING THE PRICE OF GM'S 1994 MODELS THE SAME GOES FOR LL BEAN INC'S RETAIL OUTLET IN TOKYO THE FREEPORT MAINE MAILORDER COMPANY SAYS IT DOESN'T PLAN TO REDUCE PRICES OF THE CLOTHES NOW IN ITS STORE BECAUSE THE GOODS WERE ORDERED IN JANUARY WHEN THE DOLLAR WAS STRONGER FUTURE ORDERS MAY CARRY PRICES THAT REFLECT THE STRONGER YEN OF COURSE SOME US COMPANIES ARE TAKING ADVANTAGE OF THE YEN'S RISE TO CUT PRICES AND DRUM UP ADDITIONAL SALES TIFFANY & CO LAST WEEK SLASHED THE PRICES OF 350 JEWELRY AND SILVER ITEMS IT SELLS IN JAPAN BY AN AVERAGE OF 19 IN FEBRUARY AT CROSS MARKED DOWN ITS PEN PRICES 20 ITS FIRST JAPANESE PRICE CUT SINCE 1970 WHEN IT STARTED SHIPPING TO JAPAN A 10KARAT GOLD BALLPOINT PEN NOW COSTS 8000 YEN 72 DOWN FROM 10000 YEN THE YEN WAS A VERY GOOD REASON TO REDUCE PRICES SAYS ERIC WEBER EXECUTIVE VICE PRESIDENT OF CROSS CO OF JAPAN A UNIT OF THE LINCOLN RI PEN MAKER CUTTING PRICES MAY HURT PROFITABILITY IN THE SHORT TERM HE SAYS BUT THE CUTS ALSO ATTRACT NEW CUSTOMERS IN THE LONG RUN IT MAKES SENSE HE SAYS SOME JAPANESE IMPORTERS ARE MARKING DOWN THE US GOODS THEY SELL ESPECIALLY SUPERMARKETS AND DEPARTMENT STORES WHICH NEED WAYS TO GET RECESSIONSPOOKED CONSUMERS BACK INTO STORES STILL SAYS ONE MITI OFFICIAL THE GENERAL TREND HAS BEEN TO HOLD PRICES FIRM OR CUT THEM ONLY A BIT SOME IMPORTERS ARE REDUCING THEIR PRICES BUT NOT BY THE TOTAL AMOUNT OF THE YEN'S APPRECIATION HE SAYS THAT BOTHERS MITI BECAUSE US OFFICIALS OFTEN COMPLAIN THAT HIGHER PRICES IN JAPAN FOR THE SAME PRODUCTS SOLD IN BOTH COUNTRIES ARE EVIDENCE THAT JAPAN'S MARKET ISN'T TRULY FREE IF THAT'S SO SAY THE MITI OFFICIALS WHY WON'T THE AMERICANS CUT THEIR PRICES IN JAPAN WHEN GIVEN THE OPPORTUNITY EXPLAINS A SPOKESMAN FOR THE AMERICAN CHAMBER OF COMMERCE IN JAPAN A COMPANY'S REASON FOR TAKING PROFITS MAY BE VERY IMPORTANT TO THEIR CASH FLOW AT THE MOMENT THEY MAY TAKE PROFITS NOW AND GO FOR MARKET SHARE LATER BUT SOME COMPANIES CAUTION THAT EVEN IF THEY DO CUT PRICES SALES VOLUME DOESN'T NECESSARILY INCREASE THE JAPANESE UNIT OF MCDONALD'S CORP RECENTLY OFFERED A 30 DISCOUNT ON CERTAIN SET MENUS BECAUSE SOME OF THE MAIN IMPORTED INGREDIENTS BEEF CHEESE POTATOES AND WHEAT FOR BURGER BUNS HAVE BECOME CHEAPER IN YEN TERMS A CHEESEBURGER SODA AND SMALL ORDER OF FRENCH FRIES FOR INSTANCE WERE MARKED DOWN TO 410 YEN FROM 530 YEN BUT WHILE MANY CUSTOMERS CHOSE THE BARGAIN MEALS THE CAMPAIGN DIDN'T PULL IN MANY ADDITIONAL CUSTOMERS A COMPANY SPOKESMAN SAYS 9305210048 930521 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON AIDES BATTLE OVER HEALTHCARE PAYROLL TAXES WHILE THE FIRST LADY AND HEALTH GURU MAGAZINER TALK UP THE TAX BECAUSE OF ITS PROGRESSIVENESS SOME OF CLINTON'S POLITICAL AND ECONOMIC ADVISERS FEAR IT WOULD BE A POLITICAL DISASTER EVEN IF IT IS CALLED A PREMIUM INSTEAD OF A TAX THEY ARGUE IT WOULD REINFORCE CLINTON'S TAXANDSPEND IMAGE AND ANGER WELLCOMPENSATED WORKERS WHO ARE LIKELY TO LOSE UNDER THE SCHEME ECONOMIC HEAVYWEIGHTS BENTSEN AND RUBIN HAVE YET TO WEIGH IN ON THE ISSUE DECISIONS ON THE PLAN ARE INCREASINGLY MADE BY A RELATIVELY SMALL GROUP OF HEALTH AND ECONOMIC ADVISERS AND THE PAPERS GENERATED BY THE 500PLUS MEMBERS OF THE TASK FORCE WORKING GROUPS ARE SELDOM USED SOME MEMBERS HAVING SPENT THREE MONTHS DEVISING OPTIONS ARE RESENTFUL OFFICIALS JOKE ABOUT MAGAZINER'S HUGE 100PERSON MEETINGS KNOWN AS TOLLGATES SAYING THE WORD HAS BECOME A SYNONYM IN THE WHITE HOUSE FOR CHAOS NEW TESTS OF THE ADMINISTRATION'S FOREIGNPOLICY ACUMEN LOOM OFFICIALS FEAR NEXT WEEK'S ELECTIONS IN CAMBODIA WILL REIGNITE VIOLENCE FORCING THE PRESIDENT TO CONFRONT ANOTHER BOSNIALIKE TEST OF WHETHER HE CAN LEAD AN INTERNATIONAL EFFORT TO RESTORE ORDER AND IF NEGOTIATIONS TO RESTORE HAITI'S DEPOSED PRESIDENT COLLAPSE CLINTON MAY BE FORCED TO HONOR A CAMPAIGN PLEDGE TO PERMIT THOUSANDS OF REFUGEES TO ENTER THE US OR COME UP WITH TOUGHER MEANS TO IMPOSE A SETTLEMENT THERE THE ADMINISTRATION'S POSSIBLE DISPATCH OF 800 US TROOPS TO THE PEACEFUL FORMER YUGOSLAV REPUBLIC OF MACEDONIA WOULD BE UNLIKELY TO EARN THE US ANY MARKS FOR WORLD LEADERSHIP THE TROOPS WOULD SIMPLY REPLACE THE 800 NORDIC TROOPS PRESENTLY PATROLLING MACEDONIA WHO WOULD BE SENT TO MAKE PEACE IN BOSNIA A FAR MORE DANGEROUS JOB CLINTON CATCHES FLAK FROM DEMOCRATS TO HIS LEFT AND RIGHT PARTY MODERATES ANGUISH OVER HIS REJECTION OF REPS MCCURDY AND PENNY IN THE BUDGET FIGHT FROM THE LEFT BLACK CAUCUS CHAIRMAN REP MFUME WAS MIFFED AT THE DELAY IN GETTING A MEETING OF HIS MEMBERS WITH THE PRESIDENT THE PRESIDENT'S MEETING WITH CUBAN AMERICANS AN EVENT PUSHED BY THE FIRST LADY ANGERS OTHER HISPANIC GROUPS THEY COMPLAIN THAT HE CHOSE TO MEET THE CUBAN AMERICANS FIRST BECAUSE OF THEIR SIZABLE CAMPAIGN CONTRIBUTIONS IF THE SUPREME COURT NOMINEE IS A MAN POLITICAL ADVISERS RELISH THE PROSPECT THAT WOMEN'S GROUPS WILL GROUSE GIVING CLINTON THE OPPORTUNITY TO STAND UP TO THEM HELMS'S ATTACKS ON CLINTON HUD NOMINEE ROBERTA ACHTENBERG FOR BEING A LESBIAN EMBARRASS SOME REPUBLICANS BY REINFORCING THE PARTY'S IMAGE PROBLEM POLLS SHOW AN INCREASED SENSE THAT THE REPUBLICAN PARTY IS INTOLERANT SAYS GOP POLLSTER BILL MCINTURFF UNLESS A NOMINEE'S SEXUALITY BEARS DIRECTLY ON JOB PERFORMANCE HE ADDS PEOPLE WANT FOLKS LEFT ALONE BOOMERANG CLINTON'S ENDORSEMENT OF MICHAEL WOO IN THE JUNE 8 LOS ANGELES MAYORAL RACE HASN'T WORKED WOO'S OPPONENT BUSINESSMAN RICHARD RIORDAN SCORES POINTS WITH THE NOTION OF SOMEONE WHO LIVES IN WASHINGTON IN A BIG WHITE HOUSE TELLING ANGELENOS HOW TO VOTE AND AT LEAST ONE PRIVATE TRACKING POLL SHOWS HIM WIDENING HIS LEAD OVER WOO SINCE THE ENDORSEMENT TENSION GROWS BETWEEN ASPIN'S OFFICE AND THE ARMY WHICH IS SEEN AS LAGGING THE OTHER SERVICES IN ADJUSTING TO THE POSTCOLD WAR ERA ASPIN'S APPOINTMENT THIS WEEK OF A GROUP OF RETIRED GENERALS LED BY FORMER ARMY CHIEF OF STAFF EDWARD SHY MEYER IS REGARDED AS A LACK OF CONFIDENCE IN THE ARMY'S CURRENT LEADERS SOME SUGGEST MEYER HAS MORE CLOUT THAN CURRENT ARMY CHIEF GORDON SULLIVAN STINGING THE BLUES SEN NUNN'S PERMANENT SUBCOMMITTEE ON INVESTIGATIONS IS BATTING 1000 SO FAR AFTER THE PANEL UNCOVERED HUGE SALARIES LAVISH SPENDING AND FALTERING RESERVES IN BLUE CROSS AND BLUE SHIELD ORGANIZATIONS IN NEW YORK MARYLAND AND DC THE HEADS OF ALL THREE NONPROFIT GROUPS RESIGNED NUNN'S NEXT TARGET MAY BE OHIO A CAMPAIGNREFORM COMPROMISE COULD RAISE PRESSURE ON HOUSE DEMOCRATS MANY HOUSE DEMOCRATS PRAY FOR A GOP SENATE FILIBUSTER OF THE BILL TO GET THEM OFF THE HOOK BUT A GROUP OF FIVE GOP SENATORS UNEASY ABOUT APPEARING OBSTRUCTIONIST AND ANTIREFORM PUSH A PLAN FOR IDENTICAL RULES FOR HOUSE AND SENATE CAMPAIGNS CLINTON'S PROPOSAL TO PERMIT 5000 PAC DONATIONS TO HOUSE CAMPAIGNS DOUBLE THE SENATE LIMIT WAS KEY TO WINNING BACKING FROM HOUSE DEMOCRATIC LEADERS TO PREEMPT THE GOP MAJORITY LEADER MITCHELL SAYS SENATE DEMOCRATS WILL AMEND CLINTON'S BILL TO BAN PAC MONEY ALTOGETHER THE BAN WOULDN'T SURVIVE A HOUSESENATE CONFERENCE BUT SENATE PASSAGE WOULD INCREASE PRESSURE TO REDUCE THE HOUSEBACKED 5000PERPAC LIMIT MITCHELL ACKNOWLEDGES THERE'S NO LOGICAL BASIS FOR DIFFERENT LIMITS IN THE TWO CHAMBERS MINOR MEMOS THE WHITE HOUSE SOFTBALL TEAM DUBS ITSELF PUTTING PEOPLE ON FIRST THE WHITE HOUSE DISCLOSES THAT CLINTON AND HIS FAMILY HAVE A PERSONAL SERVICES CONTRACT WITH CRISTOPHE OF BEVERLY HILLS FOR HAIRCUTS AND MAKEUP IT ISN'T SURPRISING THE ARKANSAN CLINTON APPOINTED TO CLEAN UP THE WHITE HOUSE TRAVEL OFFICE IS HIS COUSIN COMEDIAN MARK RUSSELL CLAIMS THAT IN ARKANSAS EVERYBODY IS A COUSIN 9305210047 930521 MARKETING BRIEF LIBERTY MEDIA CORP FIRM TO PURSUE TENDER OFFER FOR HOME SHOPPING SHARES LIBERTY MEDIA CORP SAID IT WOULD PURSUE ITS TENDER OFFER FOR 15 MILLION COMMON SHARES OF HOME SHOPPING NETWORK INC AFTER A DELAWARE CHANCERY COURT DENIED REQUESTS BY SHAREHOLDERS FOR A PRELIMINARY INJUNCTION TO BLOCK THE DEAL LIBERTY WHICH CURRENTLY HOLDS A 65 VOTING STAKE AND 23 EQUITY INTEREST IN HOME SHOPPING HAD OFFERED TO PAY 105 MILLION FOR AN ADDITIONAL 15 MILLION SHARES AND SAID IT COULD BUY AS MANY AS 162 MILLION THE PURCHASE WOULD INCREASE LIBERTY'S VOTING STAKE IN HOME SHOPPING TO 70 AND ITS EQUITY INTEREST TO 40 THE OFFER WHICH WAS MADE LAST MONTH EXPIRED AT MIDNIGHT PACIFIC TIME LAST NIGHT AS OF YESTERDAY ABOUT 15 MILLION SHARES HAD BEEN TENDERED 9305210046 930521 BUSINESS BRIEF TALISMAN ENERGY INC ENCOR INC HOLDERS ACCEPT SWEETENED BID BY TALISMAN ENCOR INC SAID HOLDERS APPROVED A SWEETENED OFFER BY TALISMAN ENERGY INC TO ACQUIRE ALL THE SHARES OF ENCOR IN EXCHANGE FOR TALISMAN SHARES WITH AN INDICATED VALUE OF 3648 MILLION CANADIAN DOLLARS 2882 MILLION THE ACQUISITION IS SUBJECT TO COURT APPROVAL BOTH COMPANIES ARE CALGARYBASED OILANDGAS PRODUCERS TALISMAN HAS TWICE IMPROVED ITS ORIGINAL OFFER TO WIN THE SUPPORT OF DISSIDENT HOLDERS THE LATEST PROPOSAL MADE EARLIER THIS WEEK OFFERED ONE SHARE OF TALISMAN FOR 30 SHARES OF ENCOR IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY TALISMAN SHARES CLOSED FOLLOWING THE VOTE AT 24 CANADIAN DOLLARS 1896 UP C1125 ENCOR CLOSED AT 78 CANADIAN CENTS UP SIX CANADIAN CENTS 9305210045 930521 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BRITISH UNEMPLOYMENT FELL FOR THE THIRD MONTH IN A ROW AND PAY INCREASES HIT A 25YEAR LOW BUT THE DATA PROVIDED LITTLE CLARITY ABOUT THE PACE OF RECOVERY FROM ALMOST THREE YEARS OF RECESSION THE NUMBER OF PEOPLE WITHOUT JOBS IS SEEN DRIFTING UP THIS YEAR BEFORE A SUSTAINABLE DROP TAKES HOLD BUT THAT COULD KEEP WAGES IN CHECK THE INCREASE IN AVERAGE ANNUAL EARNINGS SKIDDED TO 4 IN MARCH FROM 45 IN FEBRUARY MOREOVER THE APRIL DECLINE IN JOBLESSNESS WAS ONLY 1400 BRAKING FROM DROPS OF 25800 IN MARCH AND 25500 IN FEBRUARY UNEMPLOYMENT REMAINED AT A SEASONALLY ADJUSTED 29 MILLION OR A 105 RATE THE FOURTH HIGHEST IN THE 12 COUNTRIES OF THE EUROPEAN COMMUNITY THE LATEST FIGURES INDICATE EMPLOYERS ARE MOVING FASTER TO HIRE AND FIRE IN ADAPTING TO RECESSIONARY CONDITIONS RESHAPING UNEMPLOYMENT FROM A LAGGING TO A CURRENT ECONOMIC INDICATOR POLICE IN THAILAND ARRESTED A DOLL FACTORY EMPLOYEE SUSPECTED OF ACCIDENTALLY STARTING A FIRE LAST WEEK THAT KILLED AT LEAST 188 PEOPLE AND AFTER WARRANTS HAD BEEN ISSUED FOR FOUR EXECUTIVES OF KADER INDUSTRIAL THAILAND CO WHICH OWNS THE FACTORY TWO TURNED THEMSELVES IN FOR ARREST ON CHARGES OF ILLEGAL MODIFICATIONS OF THE FOURSTORY BUILDING AND NEGLIGENCE PUNISHABLE BY PRISON TERMS AS LONG AS 10 YEARS POLICE WERE TRYING TO DETERMINE WHETHER A LIT CIGARETTE CAUSED THE BLAZE IN NAKHON PATHOM PROVINCE ONE OF THE WORLD'S WORST FACTORY FIRES WHICH ALSO INJURED HUNDREDS OF WORKERS MOST OF THEM WOMEN BRAZILIAN PRESIDENT ITAMAR FRANCO SHUFFLED HIS CABINET MOVING THE FOREIGN MINISTER TO THE HOT SEAT HEADING THE FINANCE MINISTRY ELISEU RESENDE THE ECONOMY CHIEF FOR ONLY TWO MONTHS RESIGNED AFTER BEING ACCUSED OF CORRUPTION AND WAS SUCCEEDED BY FERNANDO HENRIQUE CARDOSO THE FOURTH PERSON TO HOLD THE POST SINCE MR FRANCO BECAME PRESIDENT SEVEN MONTHS AGO PROMISING STABILITY IN POLICIES TO OVERCOME A DEEP RECESSION THE 61YEAROLD MR CARDOSO SAID HE INTENDED TO PAY OFF FOREIGN DEBT CONTROL SPENDING ADVANCE PRIVATIZATIONS AND FIGHT INFLATION WHICH NOW IS RUNNING AT 30 A MONTH A BRIBERY STING IN ST PETERSBURG RUSSIA RESULTED IN THE ARRESTS OF TWO STAFF LAWYERS IN THE CITY'S PRIVATIZATION AGENCY THE STATE SECURITY MINISTRY SAID THE LAWYERS AND TWO OTHER PEOPLE WERE CHARGED WITH TAKING A 5000 BRIBE FROM A CONSTRUCTION COMPANY OFFICIAL THE COMPANY COOPERATED IN THE STING WITH THE MINISTRY FORMERLY THE KGB AND WITH RUSSIAN FEDERAL POLICE AUTHORITIES BELIEVE THE SUSPECTS WERE PART OF A RING DEMANDING BRIBES FROM GOVERNMENTOWNED BUSINESSES IN RETURN FOR HELPING THEM PRIVATIZE QUICKLY EARNINGS LAST YEAR AT SOUTH KOREAN MANUFACTURERS STRUGGLING IN A STAGNANT ECONOMY WERE THE WEAKEST IN A DECADE AT 3066 COMPANIES SURVEYED BY THE CENTRAL BANK PROFITABILITY IN RELATION TO SALES WAS 15 THE LOWEST SINCE 09 IN 1982 AND THE RATIO OF THEIR INTEREST PAYMENTS TO SALES WAS 63 THE HIGHEST SINCE 66 ALSO IN 1982 AS SLUGGISH SALES BOOSTED INVENTORIES THIS MEANS THAT FOR EVERY 1000 WON IN SALES A MANUFACTURER MADE INTEREST PAYMENTS OF 63 WON AND EARNED 15 WON SALES HAVE LAGGED AS THE ECONOMY BRAKED TO ITS SLOWEST PACE SINCE 1980 GROWING 47 LAST YEAR WAGE INCREASES SLOWED TO 12 FROM 19 IN 1991 AND 1990 AND 25 IN 1989 KERRY PACKER REMAINS THE RICHEST AUSTRALIAN ACCORDING TO BUSINESS REVIEW WEEKLY'S ANNUAL SURVEY WHICH TOTED UP THE 55YEAROLD MEDIA MAGNATE'S PERSONAL WEALTH AT 3 BILLION AUSTRALIAN DOLLARS US207 BILLION UP 10 FROM LAST YEAR MR PACKER OWNS A TELEVISION NETWORK AND MAGAZINES THOUGH NOT THE ONE THAT CONDUCTED THE SURVEY AMONG ENTERTAINERS THE ACTOR MEL GIBSON'S PERSONAL FORTUNE WAS ESTIMATED AT A70 MILLION ARAB INVESTORS AND BUSINESSMEN AT A CONFERENCE IN SYRIA URGED THEIR GOVERNMENTS TO INTENSIFY REFORM PROGRAMS TO KEEP PACE WITH RAPID CHANGES UNDER WAY IN THE WORLD ECONOMY THE 650 CONFEREES SOME OF WHOM HOLD TOP ECONOMIC AND TRADE POSTS IN THEIR COUNTRIES APPEALED FOR ACTIONS TO REMOVE OBSTACLES THAT BLOCK THE FLOW OF INVESTMENTS IN THE ARAB WORLD AND TO ENCOURAGE THE ROLE OF THE PRIVATE SECTOR PARTICIPANTS IN THE CONFERENCE THE FIFTH OF ITS KIND AGREED TO PROMOTE JOINT VENTURES WHICH NOW EXCEED 4185 IN THE REGION WITH CAPITAL OF 26 BILLION TO IMPROVE THE INVESTMENT CLIMATE FOR JOINT VENTURES CONFEREES ALSO CITED THE IMPORTANCE OF COOPERATION WITH FOREIGN COUNTRIES THE GROUP ALSO AGREED TO TRY TO DEVELOP ARAB MONETARY MARKETS AND DEVELOPMENT FUNDS TO IMPROVE INVESTMENT AND TRADE BETWEEN COUNTRIES IN THE REGION A 5199OUNCE GOLD NUGGET FOUND IN WESTERN AUSTRALIA SEEMS TO BE GENUINE THE PERTH MINT SAID THE NUGGET WITH A MARKET VALUE FAR EXCEEDING ITS 200000 GOLD VALUE WAS DISCOVERED NEAR THE KALGOORLIE GOLD MINING DISTRICT QUEEN ELIZABETH II'S DECISION TO OPEN BUCKINGHAM PALACE TO TOURISTS IN AUGUST TO HELP FINANCE REPAIRS FOR FIREDAMAGED WINDSOR CASTLE WILL BOOST LONDON'S ECONOMY THE ROYAL FAMILY IS ADVERTISING 60 JOB OPENINGS FOR LAVATORY ATTENDANTS WARDENS AND CASHIERS WITH PAY STARTING AT 750 AN HOUR 9305210044 930521 PHONE LINES PAY DIVIDENDS TO CURIOUS BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL IT'S HARD TO KEEP ANYTHING PRIVATE THESE DAYS IT TOOK JUST ONE PHONE CALL TO LEARN THAT ROBERT E ALLEN CHAIRMAN AND CHIEF EXECUTIVE OF AMERICAN TELEPHONE & TELEGRAPH CO OWNS 102377 AT&T SHARES THAT HIS LAST DIVIDEND CHECKS TOTALED MORE THAN 33000 AND WERE CASHED ON MAY 6 YOU CAN GET SIMILAR INFORMATION ABOUT YOUR NEIGHBORS YOUR FRIENDS COWORKERS OR ANYONE ELSE WHOSE SOCIAL SECURITY NUMBER YOU KNOW BY CALLING AT&T SHAREOWNER SERVICES' AUTOMATED INFORMATION SERVICE AT 18003488288 YOU CAN FIND OUT ABOUT THEIR OTHER HOLDINGS TOO MANY LARGE CORPORATIONS OFFER SIMILAR AUTOMATED SERVICES INCLUDING DOW JONES & CO PUBLISHER OF THIS NEWSPAPER TYPICALLY THESE COMPANIES HAVE TOLLFREE TELEPHONE NUMBERS THAT OFFER RECORDED MESSAGES AND ACCESS TO INFORMATION BY PUNCHING THE KEYS ON A TOUCHTONE TELEPHONE ALL IT TAKES IS A SOCIAL SECURITY NUMBER TO GET INTO THE AUTOMATED SYSTEM WE LOOK AT IT AS A CONVENIENCE FOR SHAREHOLDERS SAYS CAROL KOEPPEN A MANAGER IN AT&T'S INVESTOR RELATIONS DE PARTMENT WE'RE TRYING TO MAKE IT AS EASY AS POSSIBLE TO GET INFORMATION MR ALLEN'S SOCIAL SECURITY NUMBER LIKE THAT OF MANY OTHER TOP EXECUTIVES OF PUBLICLY HELD COMPANIES IS READILY AVAILABLE ON SECURITIES AND EXCHANGE COMMISSION FILINGS IT'S NOT THAT DIFFICULT TO GET OTHER SOCIAL SECURITY NUMBERS SOME STATES USE THEM ON DRIVERS' LICENSES THEY'RE SOMETIMES PRINTED ON PERSONAL CHECKS AND THEY ROUTINELY APPEAR ON TAX FORMS MADE PUBLIC BY POLITICIANS AT&T WHICH WITH 24 MILLION SHAREHOLDERS IS THE NATION'S MOST WIDELY HELD COMPANY FOR YEARS HAS HAD A TOLLFREE NUMBER TO CALL FOR INFORMATION DURING BUSINESS HOURS LAST NOVEMBER IT BEGAN OFFERING THE AUTOMATIC SERVICE AFTER BUSINESS HOURS THIS MONTH IT IS AVAILABLE DURING THE DAY TOO ALTHOUGH REPRESENTATIVES ARE ALSO AVAILABLE MS KOEPPEN SAYS ONLY A FEW SHAREHOLDERS HAVE EXPRESSED CONCERN THOSE WHO COMPLAIN CAN BLOCK ACCESS TO THEIR ACCOUNTS FOR THE AUTOMATED SYSTEM ALONE OR FOR BOTH THE AUTOMATED SYSTEM AND PERSONAL REPRESENTATIVES AS FOR THE EASY ACCESS TO INFORMATION ABOUT MR ALLEN'S ACCOUNT SHE NOTES THAT HIS HOLDINGS ARE READILY AVAILABLE IN SEC FILINGS AND DIVIDEND PAYOUTS ARE ROUTINELY ANNOUNCED ONE SHAREHOLDER DID CALL THE WALL STREET JOURNAL TO COMPLAIN ALTHOUGH HE DIDN'T WANT HIS NAME USED I DON'T WANT PEOPLE TO KNOW HOW MANY SHARES OF AT&T I OWN IT'S PRIVATE HE SAYS THE LEAST THEY COULD HAVE DONE IS TO REQUIRE AN ACCOUNT NUMBER IN ADDITION TO THE SOCIAL SECURITY NUMBER MUTUAL FUND GIANT FIDELITY INVESTMENTS ADDED A PERSONAL IDENTIFICATION NUMBER TO ITS AUTOMATED SYSTEM IN 1991 AFTER SHAREHOLDERS VOICED OBJECTIONS AT&T'S SYSTEM IS ONE OF ABOUT 400 OPERATED BY FIRST CHICAGO TRUST CO A FIRST CHICAGO CORP UNIT THAT ACTS AS TRANSFER AGENT FOR MANY LARGE COPORATIONS FIRST CHICAGO OFFICIALS SAID THERE HAVE BEEN FEW COMPLAINTS SINCE THE FIRST AUTOMATED SYSTEMS WERE INTRODUCED ABOUT FOUR YEARS AGO CONCERNS WITH THESE SHAREHOLDER INFORMATION SYSTEMS INCLUDE EXXON CORP JOHNSON & JOHNSON AND PHILIP MORRIS COS SOME OFFER THE SYSTEMS ONLY AFTER BUSINESS HOURS UNTIL 10 PM WEEKDAYS AND ALL DAY SATURDAY SOME OFFER AUTOMATION AS AN ALTERNATIVE DURING THE DAY 9305210043 930521 BUSINESS BRIEF DIGICON INC FIRM ENDS PROPOSAL TO BUY GRANT TENSOR AFTER SUITS DIGICON INC HAS TERMINATED ITS PROPOSED ACQUISITION OF GRANT TENSOR GEOPHYSICAL CORP BECAUSE OF THREE LAWSUITS FILED BY GRANT TENSOR'S PREFERRED HOLDERS OBJECTING TO THE TRANSACTION THE PROVIDER OF SEISMIC DATA TO THE PETROLEUM INDUSTRY HAD AGREED TO BUY GRANT TENSOR IN A STOCK TRANSACTION VALUED BETWEEN 95 MILLION AND 100 MILLION UNDER THE AGREEMENT EACH COMMON SHARE OF GRANT TENSOR WAS TO BE EXCHANGED FOR 063 COMMON SHARE OF DIGICON AND EACH SHARE OF GRANT TENSOR CONVERTIBLE EXCHANGEABLE PREFERRED STOCK WAS TO BE EXCHANGED FOR 38 COMMON SHARES OF DIGICON IN THEIR LAWSUITS GRANT TENSOR'S PREFERRED HOLDERS SAID THEY WERE NOT RECEIVING FAIR VALUE FOR THEIR SHARES DIGICON SAID IT CUT OFF DISCUSSIONS WITH GRANT TENSOR BECAUSE THE SUITS CAST DOUBT ON WHETHER THE TRANSACTION WOULD BE APPROVED BY THE REQUIRED CLASSES OF GRANT TENSOR HOLDERS DELAYS CAUSED BY THE LAWSUITS ALSO RAISED CONCERNS ABOUT THE CONDITION GRANT TENSOR WOULD BE IN ONCE THE TRANSACTION DID GO THROUGH DIGICON SAID GRANT TENSOR A HOUSTONBASED GEOPHYSICAL SERVICES COMPANY SAID IT WILL SEEK OTHER WAYS TO IMPROVE SHAREHOLDER VALUE DIGICON SHARES ROSE 37 1/2 CENTS YESTERDAY TO 3625 ON THE AMERICAN STOCK EXCHANGE AND IN OVERTHECOUNTER TRADING SHARES OF GRANT TENSOR ROSE 25 CENTS TO 1625 9305210042 930521 FORD MOTOR STOCK SLIPS AGAIN AMID BEARISH FORECAST BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO STOCK STUMBLED FOR THE THIRD CONSECUTIVE DAY AFTER THE COMPANY DISAPPOINTED SOME ANALYSTS WITH AN INCREASINGLY BEARISH FORECAST FOR RETURNING TO PROFITABILITY IN EUROPE AND A CAUTIOUS OUTLOOK FOR ITS NORTH AMERICAN OPERATIONS THE DOWNBEAT FORECAST MADE AT A MEETING WITH AUTO ANALYSTS TUESDAY IGNITED A SELLOFF OF FORD STOCK THE STOCK TUMBLED 3 1/8 OVER THE PAST THREE DAYS SLIPPING 375 CENTS YESTERDAY TO CLOSE AT 5175 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AT THE MEETING FORD TOLD ANALYSTS THAT IT IS INCREASINGLY UNLIKELY TO BREAK EVEN IN ITS EUROPEAN OPERATIONS DAVID N MCCAMMON FORD'S VICE PRESIDENT OF FINANCE SAID THE COMPANY EXPECTS INDUSTRYWIDE VEHICLE SALES IN EUROPE TO REACH 127 MILLION THIS YEAR DOWN FROM PROJECTIONS LAST MONTH OF 131 MILLION FORD HAD SAID IN LATE APRIL THAT IT WOULD BE DIFFICULT TO GET TO THE BREAKEVEN POINT IN EUROPE EVEN AT THE HIGHER LEVEL IN A TELEPHONE INTERVIEW YESTERDAY MR MCCAMMON SAID THAT EUROPE'S ECONOMY ISN'T EXPECTED TO IMPROVE GREATLY NEXT YEAR THE ECONOMY IN EUROPE HAS GOTTEN SOFTER AND SOFTER MR MCCAMMON SAID PROSPECTS FOR FORD'S CORE NORTH AMERICAN OPERATIONS APPEAR BRIGHTER BUT MR MCCAMMON SAID FORD IS CAUTIOUS IN ITS OPTIMISM FORD NOW SEES THE US CAR AND LIGHTTRUCK MARKET MOVING TOWARD A 137 MILLIONUNIT ANNUAL RATE UP SLIGHTLY FROM EARLIER PROJECTIONS OF A 135 MILLION ANNUAL RATE WE FEEL BETTER ABOUT NORTH AMERICA THAN WE DID LAST YEAR AND WE FEEL BETTER THAN WE DID IN THE FIRST QUARTER MR MCCAMMON SAID SALES ARE IMPROVING BUT MR MCCAMMON SAID HE WAS SURPRISED OVER ANALYSTS REACTION TO FORD'S PRESENTATION EARLIER IN THE WEEK ANALYSTS SHOULD KNOW EUROPE IS HAVING A VERY DIFFICULT YEAR MR MCCAMMON SAID THAT'S NOT BIG NEWS AUTO ANALYSTS HOWEVER SAID FORD'S DOWNBEAT TONE WAS IN STARK CONTRAST TO AN UPBEAT MEETING WITH CHRYSLER CORP EXECUTIVES EARLIER TUESDAY MERRILL LYNCH & CO LOWERED ITS INTERMEDIATETERM INVESTMENT RATING ON FORD TO NEUTRAL FROM ABOVE AVERAGE ON WEDNESDAY THE INDUSTRY ANALYSTS SAID FORD NOW APPEARS TO HAVE NO PROSPECT OF POSTING BREAKEVEN RESULTS IN EUROPE THAT OUTLOOK IS A MARKED SHIFT FROM THE COMPANY'S PROJECTIONS EARLIER THIS YEAR OF POSTING BREAKEVEN RESULTS FORD IS BEARISH ON EUROPE AND THERE IS CONFUSION OVER WHY THEY AREN'T MAKING MORE MONEY IN NORTH AMERICA SAID STEPHEN GIRSKY PAINEWWEBBER INC'S AUTO ANALYST SOME AUTO ANALYSTS SAID THEY LEFT THE MEETING CONCERNED OVER FORD'S SEEMINGLY HIGH PRODUCTION AND MARKETING COSTS THAT DAMPENED FIRSTQUARTER US AUTOMOTIVE PROFITS HOWEVER FORD'S TOTAL VEHICLE SALES HAVE OUTPACED THE INDUSTRY IT FORD WASN'T AN UPBEAT MEETING SAID WENDY BEALE NEEDHAM SMITH BARNEY HARRIS UPHAM & CO'S AUTO ANALYST THEY WEREN'T ABLE TO CONVINCE PEOPLE THAT THINGS WOULD GET DRAMATICALLY BETTER IN NORTH AMERICA QUICKLY 9305210041 930521 BUSINESS BRIEF HILTON HOTELS CORP CONCERN PLANS TO CONSOLIDATE INTERNATIONAL DOMESTIC UNITS HILTON HOTELS CORP SAID IT WILL CONSOLIDATE THE OPERATIONS OF ITS CONRAD INTERNATIONAL HOTELS UNIT WITH HILTON'S DOMESTIC HOTELS BUSINESS SAVING AN ESTIMATED 6 MILLION TO 8 MILLION IN ANNUAL EXPENSES BARRON HILTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER TOLD THE COMPANY'S ANNUAL MEETING THAT THE CONCERN WILL CONTINUE TO BOOST ITS HOLDINGS OF INTERNATIONAL CASINO AND HOTEL OPERATIONS IN ADDITION TO THE GAMING INVESTMENTS THAT ACCOUNT FOR ABOUT 70 OF ITS REVENUE MR HILTON AND RAYMOND C AVANSINO JR PRESIDENT AND CHIEF OPERATING OFFICER DECLINED TO SAY HOW MANY EMPLOYEES MIGHT BE TERMINATED THE ANNOUNCEMENT DIDN'T EXCITE ANALYSTS I DON'T THINK THIS CHANGES ANYTHING IN THE FUNDAMENTALS OF THE COMPANY SAID HAROLD VOGEL AN ANALYST AT MERRILL LYNCH GLOBAL SECURITIES RESEARCH HILTON HOTELS STOCK CLIMBED 2125 A SHARE TO CLOSE AT 4850 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING HILTON HOTELS WHICH IS BASED IN BEVERLY HILLS CALIF HAD NET INCOME LAST YEAR OF 1039 MILLION OR 217 A SHARE ON REVENUE OF 123 BILLION ALSO ERIC M HILTON THE CHAIRMAN'S BROTHER WAS NAMED VICE CHAIRMAN IN CHARGE OF CORPORATE PLANNING AND PROPERTY DEVELOPMENT DOMESTICALLY AND ABROAD 9305210040 930521 ASIAN AIRLINES SET A JOINT PROGRAM FOR FREQUENT FLIERS BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG TIRED OF SEEING PATRONS DEFECT TO US AND EUROPEAN AIRLINES THREE MAJOR ASIAN CARRIERS CATHAY PACIFIC AIRWAYS SINGAPORE AIRLINES AND MALAYSIA AIRLINES HAVE LAUNCHED A JOINT FREQUENTFLIER PROGRAM OF THEIR OWN IF YOU CAN'T BEAT 'EM JOIN 'EM THEY COULD NO LONGER AFFORD TO STAY OUT OF THE GAME SAID TOM HARTJE A HONG KONGBASED MARKETING CONSULTANT WHO SPECIALIZES IN THE TRAVEL INDUSTRY THE IMPACT OF FREQUENTFLIER PROGRAMS AS A MARKETING TOOL COULDN'T BE IGNORED ANYMORE IN SINGAPORE ON THURSDAY THE THREE AIRLINES UNVEILED PASSAGES A THREEWAY FREQUENTFLIER PROGRAM THAT WILL TAKE OFF ON JULY 1 IT WILL BE OPERATED BY A JOINTVENTURE COMPANY THE THREE HAVE SET UP CALLED ASIAN FREQUENT FLYER PROGRAM PTE BASED IN SINGAPORE BRITISH AIRWAYS AND SWISSAIR ARE TO JOIN AS PARTNERS IN SEPTEMBER AND OTHERS ARE EXPECTED TO JOIN LATER IT ISN'T THE FIRST SUCH PROGRAM TO BE OFFERED BY ASIAN AIRLINES BUT IT IS THE MOST EXTENSIVE TO DATE THE THREE AIRLINES WHICH HAVE RELIED LARGELY ON PROVIDING TOPNOTCH SERVICE TO DRAW BUSINESS DRAGGED THEIR FEET FOR YEARS WHILE US AND LATER EUROPEAN CARRIERS DEVISED INCREASINGLY ATTRACTIVE FREQUENTFLIER PLANS TO FILL SEATS BUT THE PERSIAN GULF WAR AND THEN RECESSION IN THE WEST CUT TRAVEL BUDGETS BRINGING FIERCER COMPETITION TO ASIAN SKIES FEELING THE PINCH THE LONGPROFITABLE ASIAN CARRIERS SAW NO ALTERNATIVE TO INVESTING IN THEIR OWN FREQUENTFLIER PROGRAMS WE FELT WE REACHED A POINT WHEN WE HAD TO RESPOND ROWLAND COBBOLD MARKETING DIRECTOR OF CATHAY SAID IN AN INTERVIEW UNLIKE MANY US AND EUROPEAN PROGRAMS PASSAGES IS FOR FIRSTCLASS AND BUSINESSCLASS PASSENGERS ONLY ECONOMYCLASS FLIERS CAN'T RACK UP POINTS THOUGH PASSAGES MEMBERS CAN REDEEM THEIR ACCUMULATED POINTS TO FLY ECONOMY THE ORIENTATION OF THE ASIAN FREQUENT FLYER PROGRAM IS PRIMARILY TOWARD HIGHYIELD SERVICECONSCIOUS PASSENGERS THE THREE CARRIERS SAID IN A JOINT ANNOUNCEMENT SOME ANALYSTS AND INDUSTRY EXECUTIVES HAVE THEIR DOUBTS ABOUT A PROGRAM THAT EXCLUDES ECONOMYCLASS PASSENGERS IF THEY'RE PUTTING IN A PROGRAM TO BE COMPETITIVE WITH OTHER CARRIERS THEY SHOULD STRUCTURE IT TO BENEFIT ALL PASSENGERS SAID JIM ECKES DIRECTOR OF INDOSWISS AVIATION A HONG KONGBASED AVIATION CONSULTING FIRM AND AN EXECUTIVE WITH A US CARRIER THAT COMPETES WITH ASIAN AIRLINES ON SOME ROUTES NOTED HOW MANY COMPANIES HAVE RESTRICTIONS ON MIDDLEMANAGERS FLYING BUSINESS MOST MAKE THEM FLY ECONOMY OTHERS HOWEVER VIEW PASSAGES AS A SMART MOVE LARGELY BECAUSE MORE THAN HALF OF MANY AIRLINES' REVENUE COMES FROM FIRST AND BUSINESSCLASS BUSINESS AND THAT'S WHERE THE ASIAN CARRIERS HAVE BEEN LOSING THE MOST GROUND TO THEIR COMPETITORS 9305210039 930521 MARKETING BRIEF WESTERN PUBLISHING GROUP LOSS OF 45 MILLION IS POSTED FOR FIRM'S FISCAL FIRST PERIOD A COMBINATION OF LOWER SALES WRITEDOWNS AND AN ACCOUNTING CHANGE PUT WESTERN PUBLISHING GROUP INC IN THE RED FOR THE FISCAL FIRST QUARTER ENDED MAY 1 THE CHILDREN'S BOOK COMPANY REPORTED A WHOPPING NET LOSS OF 451 MILLION OR 216 A SHARE FOR THE LATEST QUARTER COMPARED WITH YEAREARLIER NET PROFIT OF 21 MILLION OR NINE CENTS A SHARE REVENUE FELL 86 TO 111 MILLION FROM 1215 MILLION A YEAR EARLIER CHAIRMAN RICHARD A BERNSTEIN BLAMED THE SALES DECLINE ON ADVERSE WEATHER AND RETAILER PESSIMISM WE ARE PLEASED HOWEVER WITH THE CONSUMER'S ACCEPTANCE OF OUR PRODUCTS AS EVIDENCED BY CONSUMER TAKEAWAY AT RETAIL HE ADDED ORDERS THIS MONTH ARE SUBSTANTIALLY AHEAD OF THE YEARAGO LEVEL AS IS THE COMPANY'S TOTAL BACKLOG HE SAID WITHOUT RELEASING SPECIFIC FIGURES THE COMPANY SAID THE FISCAL FIRST QUARTER IS NORMALLY ITS LEASTIMPORTANT SELLING SEASON THE NET LOSS FOR THE LATEST PERIOD INCLUDED LOSSES OF 148 MILLION FROM A CHANGE IN ACCOUNTING FOR RETIREMENT BENEFITS 218 MILLION TO PROVIDE FOR WRITING DOWN THE ASSETS OF THE COMPANY'S ADVERTISING SPECIALTY DIVISION AND 12 MILLION FOR COSTS ASSOCIATED WITH A BOOK MARKETING PROGRAM THE ADVERTISING SPECIALTY UNIT SELLS WRITING INSTRUMENTS MOLDEDPLASTIC ITEMS AND OTHER PRODUCTS USED IN ADVERTISING AND PROMOTIONS 9305210038 930521 INITIAL OFFER OF MFS COMMUNICATIONS CALLS UP GOOD RESPONSE FROM INVESTORS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MFS COMMUNICATIONS CO AN UPSTART DEVELOPER OF PRIVATE PHONE NETWORKS RANG UP GOOD RESPONSE IN ITS FIRST DAY OF TRADING SHARES OF THE OMAHA NEB COMPANY INITIALLY PRICED AT 20 EACH QUICKLY ROSE TO 24625 ON VOLUME OF 74 MILLION SHARES IN OVERTHECOUNTER TRADING MFS FORMERLY KNOWN AS METROPOLITAN FIBER SYSTEMS INC IS ABOUT 85OWNED BY CLOSELY HELD CONSTRUCTION AND MINING COMPANY PETER KIEWIT SONS INC IT PROVIDES PRIVATE HIGHSPEED VOICE AND DATA SERVICES OVER A SOPHISTICATED FIBEROPTIC NETWORK SERVING MORE THAN 680 GOVERNMENT AGENCIES AND BIG CORPORATIONS FIBEROPTIC LOOPS ARE BECOMING MORE POPULAR PARTICULARLY IN AND AROUND METROPOLITAN AREAS BECAUSE THEY HAVE GREATER CAPACITY AND SPEED THAN TRADITIONAL COPPERWIRE NETWORKS OF LOCAL BELL TELEPHONE COMPANIES MERRILL LYNCH & CO'S TELEPORT COMMUNICATIONS UNIT ALSO IS EXPANDING FIBEROPTIC SERVICES MFS BOOSTED ITS OFFERING TO 11 MILLION FROM THE PREVIOUSLY PLANNED EIGHT MILLION SHARES THROUGH UNDERWRITERS SALOMON BROTHERS INC AND BEAR STEARNS & CO THE OFFERING HAD BEEN EXPECTED AT 17 TO 19 A SHARE WITH 517 MILLION SHARES OUTSTANDING THE COMPANY ON PAPER IS WORTH MORE THAN 12 BILLION IN ITS PROSPECTUS MFS SAID IT NARROWED ITS OPERATING LOSS TO 118 MILLION IN 1992 FROM 269 MILLION IN 1991 RESULTS THAT LARGELY REFLECTED EARLY OPERATING EXPENSES REVENUE HOWEVER JUMPED TO 1087 MILLION IN 1992 FROM 372 MILLION IN 1991 PARTLY DUE TO AN ACQUISITION IN 1991 MFS AND TELEPORT WHICH OFFER FULLFLEDGED ALTERNATIVES TO CORPORATIONS AND AGENCIES THAT WANT HIGHSPEED HIGHQUALITY TELECOMMUNICATIONS NETWORKS ARE POISED TO TAKE ADVANTAGE OF OPPORTUNITIES TO PROVIDE PRIVATE NETWORKS LINKED TO THE PUBLIC TELEPHONE SYSTEM SOME LOCAL TELEPHONE MONOPOLIES FOR INSTANCE HAVE AGREED TO ALLOW LOCAL OPTICALFIBER LOOP COMPANIES TO CONNECT DIRECTLY TO THE PHONE COMPANY NETWORKS IN SOME STATES LOCAL REGULATORS HAVE SUPPORTED PLANS BY FIBEROPTIC CONCERNS TO EXPAND THEIR PRIVATELINE SERVICES INTO PUBLIC SWITCHED SERVICES DOWN THE ROAD THAT WILL ALLOW US TO SERVICE CUSTOMERS NOT DIRECTLY CONNECTED TO OUR LOCAL NETWORK AN MFS SPOKESMAN SAID THE FILING NOTED HOWEVER THAT IT COULD BE ADVERSELY AFFECTED IF LOCAL PHONE COMPANIES ARE PERMITTED MORE REGULATORY FLEXIBILITY RESULTING IN LOWER RATES PUTTING DOWNWARD PRESSURE ON RATES MFS AND ITS COMPETITORS COULD CHARGE IN 1992 EACH OF MFS'S 12 METROPOLITAN AREA NETWORKS POSTED PROFITS BEFORE INTEREST INCOME TAXES DEPRECIATION AND CERTAIN AMORTIZATION EXPENSES MFS SAID THE FILING SAID KIEWIT HAD INVESTED 434 MILLION IN THE COMPANY AND INTENDED TO PURCHASE TWO MILLION COMMON SHARES AT THE INITIAL PUBLIC OFFERING PRICE THE FILING SAID THE COMPANY HAS APPROVED PLANS TO SPEND MORE THAN 100 MILLION THIS YEAR FOR NETWORK EXPANSIONS AND OTHER CAPITAL SPENDING AND EXPECTS TO APPROVE ADDITIONAL PROJECTS AS WELL THE MFS AND TELEPORTS OF THE WORLD ARE IN A VERY PRIVILEGED POSITION SAID PAINEWEBBER ANALYST JACK GRUBMAN HE SAID BIG CORPORATIONS LOOKING TO CUT COSTS OBTAIN DIVERSE ROUTES AND GET BACKUP NETWORK SYSTEMS WOULD INCREASINGLY SIGN UP FOR PRIVATE FIBEROPTIC NETWORKS 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 9305210037 930521 WHO'S NEWS VAN HEUSEN NAMES KLATSKY ITS CHIEF BREAKING PATTERN BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BREAKING WITH MORE THAN A CENTURY OF TRADITION APPAREL AND FOOTWEAR MAKER PHILLIPSVAN HEUSEN CORP NAMED BRUCE J KLATSKY CHIEF EXECUTIVE THE FIRST FROM OUTSIDE THE PHILLIPS FAMILY BUT THE DEPARTURE IN TRADITION IS IN NAME ONLY AND NOT IN MANAGEMENT STYLE COMPANY OFFICIALS AND ANALYSTS SAY MR KLATSKY PRESIDENT OF PHILLIPSVAN HEUSEN SINCE 1987 IS EXPECTED TO CONTINUE THE POLICIES HE AND CURRENT CHIEF EXECUTIVE LAWRENCE S PHILLIPS INSTITUTED WHICH DOUBLED THE COMPANY'S REVENUE AND ESTABLISHED A LEADING POSITION IN THE MEN'S DRESS SHIRT MARKET IN NEW YORK STOCK EXCHANGE TRADING PHILLIPSVAN HEUSEN SHARES ROSE 1125 TO 30125 THE COMPANY HAS MAJOR POSITIONS THROUGHOUT THE DRESS SHIRT MARKET IT MAKES EXPENSIVE GEOFFREY BEENE DESIGNER SHIRTS MIDPRICED VAN HEUSEN SHIRTS AND IS THE NATION'S LARGEST MAKER OF PRIVATE LABEL SHIRTS FOR DEPARTMENT STORES AND CATALOG MARKETERS SUCH AS LAND'S END WE GAINED DOMINANCE IN EVERY SECTOR BECAUSE OF A CLEAR FOCUS ON DELIVERING QUALITY TO THE CONSUMER SAID MR KLATSKY 44 YEARS OLD IF WE STICK TO THAT TENET WE WILL CONTINUE OUR TRACK RECORD THE RECORD INCLUDES ANNUAL SALES OVER 1 BILLION DOUBLE THE COMPANY'S SALES FIVE YEARS AGO IN 1992 PHILLIPSVAN HEUSEN EDGED AHEAD OF BIDERMANN INDUSTRIES MAKERS OF ARROW SHIRTS IN THE 24 BILLION MEN'S DRESS SHIRT MARKET PHILLIPSVAN HEUSEN TOOK OVER GH BASS SHOE CO IN 1987 AND TRANSFORMED THE UNPROFITABLE CASUAL SHOE MAKER INTO ONE OF THE BIGGEST SELLERS IN THE MEN'S MARKET MANY INCLUDING MR PHILLIPS CREDIT MR KLATSKY A 22YEAR VETERAN OF THE COMPANY FOR THE RESULTS HE'S INTUITIVE ACTIONORIENTED SAID JOHN HOLMES AN ANALYST WITH MRCA A MARKET RESEARCH FIRM IN STAMFORD CONN HE BROUGHT TRUE TEAM EFFORT TO THE COMPANY MR KLATSKY WILL TAKE OVER AS CHIEF EXECUTIVE JUNE 1 AND WILL BECOME CHAIRMAN IN A YEAR MR PHILLIPS 66 WILL CONTINUE AS A BOARD MEMBER AND CONSULTANT UNDER MR KLATSKY'S STEWARDSHIP THE COMPANY GOT RID OF ITS TROUBLED RETAIL SPECIALTY STORES AND SUIT LINE IT BROADENED ITS DISTRIBUTION NETWORK BY OPENING OVER 200 OUTLET STORES AND SELLING ITS MIDPRICED SHIRTS THROUGH JC PENNEY IN LATE 1991 THE COMPANY EMBARKED ON A SEXY AND SUCCESSFUL ADVERTISING CAMPAIGN AIMED AT WOMEN THE PRINCIPAL BUYERS OF MEN'S SHIRTS MR KLATSKY SAYS THE CHANGING OF THE GUARD AT PHILLIPSVAN HEUSEN DOESN'T SIGNAL A CHANGE IN STRATEGY THE COMPANY PLANS TO BUTTRESS MARKET SHARES BY SEEKING MORE WAYS TO IMPROVE PRODUCTION EFFICIENCY IT HAS A QUICK RESPONSE COMPUTER TIE TO RETAILERS THAT GIVES SPEEDY UPDATES ON SALES AND ENABLES THE COMPANY TO RESTOCK INVENTORY WITHIN 72 HOURS MR KLATSKY SAID THAT THE COMPANY IS CAREFULLY AND PRUDENTLY CONSIDERING SEVERAL ACQUISITION POSSIBILITIES THAT WOULD NOT DILUTE EARNINGS BUT DECLINED TO ELABORATE FURTHER MR KLATSKY DEFINITELY PUSHED THE VALUEQUALITYPRICE BUTTON RIGHT ON MR HOLMES SAID HE'LL KEEP THE COMPANY GROWING IT'S IN GOOD HANDS WITH HIM 9305210036 930521 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED MAY 14 ACCOUNTED FOR 117 OR AN AVERAGE 293 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 47 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 373 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 416 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 451 OF PROGRAM TRADING WAS EXECUTED BY FIRMS' FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 42 WAS FOR CUSTOMERS AN ADDITIONAL 129 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES DID MOST OF ITS PROGRAM TRADING FOR ITS OWN ACCOUNT WHILE MORGAN STANLEY FIRST BOSTON SALOMON BROTHERS AND MERRILL LYNCH DID ALL OR MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9305210035 930520 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9305210034 930521 REAL ESTATE BY JIM CARLTON DESPITE RESTORED VITALITY AT COMMERCIAL BANKS AND PRIVATELY OWNED SAVINGS AND LOANS THE GOVERNMENT'S STOCK OF SICK THRIFTS IS DETERIORATING PRIVATE THRIFT EARNINGS ROSE 16 IN THE FOURTH QUARTER FROM A YEAR EARLIER AND BANK PROFITS MORE THAN DOUBLED ACCORDING TO VERIBANC A WAKEFIELD MASS BANK RATING FIRM BUT LOSSES OF THE THRIFTS HELD BY THE RESOLUTION TRUST CORP THE FEDERAL THRIFT BAILOUT AGENCY SWELLED TO 15 BILLION FROM 1 BILLION THAT LEAVES THE RTC'S TOTAL THRIFT LOSSES AT MORE THAN 22 BILLION IN THE THREE YEARS SINCE THE BAILOUT BEGAN THE AGENCY HAS SPENT 845 BILLION LIQUIDATING 654 THRIFTS AND HAS 85 LEFT THE POOR PERFORMANCE ISN'T THE FAULT OF THE RTC WHICH SEIZED INSOLVENT THRIFTS HEMORRHAGING MONEY EVEN IF IT QUICKLY SELLS SUCH THRIFTS IT MUST COVER THE VALUE OF THEIR SAVINGS DEPOSITS MINUS THE VALUE OF ANY ASSETS MOST OF THE LOANS HELD BY THE THRIFTS ARE BACKED BY REAL ESTATE THE AGENCY'S PROBLEMS WERE AGGRAVATED BY CONGRESS WHICH IN LATE 1991 ALLOCATED 25 BILLION FOR THE RTC TO USE ON JETTISONING THE WORST THRIFTS BUT ADDED THE PROVISION THAT THE FUNDS HAD TO BE SPENT BY APRIL 1 1992 THE AGENCY SPENT JUST 7 BILLION BY THAT DATE LEAVING IT UNABLE TO FINANCE MORE THRIFT LIQUIDATIONS THESE INSTITUTIONS NEEDED TO BE PUT OUT OF THEIR MISERY A YEAR AGO SAYS WARREN HELLER VERIBANC'S RESEARCH DIRECTOR THE COST OF CONTINUING TO RUN THOSE SAVINGS AND LOANS HAS ADDED MORE THAN 1 BILLION TO THE THRIFT BAILOUT TAB HE SAYS WHICH COULD TOTAL 180 BILLION EXCLUDING INTEREST CONGRESS IS EXPECTED TO PROVIDE MORE BAILOUT MONEY SOON SOME CRITICS SAY THE RTC FAILED TO TAKE ADVANTAGE OF OPPORTUNITIES TO MAKE MORE MONEY ON STRONGER THRIFTS DENNIS JACOBE A WASHINGTON DC INDUSTRY CONSULTANT SAYS THE RTC COULD HAVE SOLD INSTITUTIONS FOR LESS AND RETAINED AN EQUITY INTEREST ENTITLING IT TO A SHARE OF FUTURE PROFITS BUT AN RTC SPOKESMAN SAYS THAT WOULD HAVE BEEN A GAMBLE CONGRESS IS TRYING TO REIN IN THE FEDERAL BUREAUCRACY'S APPARENT DISREGARD FOR THE LAWS OF SUPPLY AND DEMAND THE GENERAL SERVICES ADMINISTRATION WHICH ACTS AS LANDLORD FOR FEDERAL CIVILIAN AGENCIES IS UNDER FIRE FOR SPONSORING 95 BILLION IN CONSTRUCTION PROJECTS RATHER THAN SEEKING CHEAPER QUARTERS ON THE GLUTTED PRIVATE MARKET IN ATLANTA THE GSA PLANS TO LEASE 14 MILLION SQUARE FEET OF A NEW CITYDEVELOPED OFFICE TOWER VACATING 12 MILLION SQUARE FEET IN A MARKET WHERE VACANCIES APPROACH 30 A CONGRESSIONAL STUDY SAYS THE CHANGE WILL RAISE THE GSA'S ANNUAL RENT THERE MORE THAN 70 TO 26 MILLION GSA OFFICIALS SAY THE LARGE SPACE THEY REQUIRE ISN'T AVAILABLE LOCALLY IN PHILADELPHIA WITH A DOWNTOWN VACANCY RATE OF 18 THE GSA PLANS TO SIGN A 60YEAR COMMITMENT ON A MILLIONSQUAREFOOT BUILDING PROPOSED BY THE POSTAL SERVICE THOUGH FREEZING RENTAL COSTS FOR SO LONG MIGHT SEEM SENSIBLE CRITICS SAY IT WOULD MAKE MORE SENSE TO BUY AN EXISTING BUILDING AND AVOID THE NEARLY 200 MILLION IN CONSTRUCTION COSTS COMPARABLY SIZED DISTRESSED SPACE CAN BE BOUGHT FOR AS LITTLE AS 50 MILLION BUYING A BUILDING IS GENERALLY OUT OF THE QUESTION HOWEVER BECAUSE A FEDERAL RULE REQUIRES AN AGENCY TO ACCOUNT FOR THE ENTIRE COST OF A BUILDING PURCHASE IN ONE BUDGET YEAR RATHER THAN SPREADING IT OUT OVER THE LIFE OF A LOAN THAT ANGERS REALESTATE EXECUTIVES I THINK IT'S A TOTAL DISGRACE SAYS DAVID G MARSHALL CHAIRMAN AND CHIEF EXECUTIVE OF AMERIMAR REALTY PHILADELPHIA THERE IS JUST NO NEED FOR ANY OF THE BUILDINGS THE SENATE JOINED IN THE CRITICISM LAST WEEK ADOPTING A MEASURE REQUESTING ALL FEDERAL AGENCIES TO BE MORE FLEXIBLE AND CONSIDER NEW CONSTRUCTION ONLY AS A LAST RESORT THE LEGISLATION MOVES TO THE HOUSE NEXT BUT GSA OFFICIALS SAY THEIR CONSTRUCTION IS MAINLY FOR SUCH SPECIALTY BUILDINGS AS BORDER STATIONS AND FEDERAL COURTHOUSES THIS DOESN'T MEAN MISTAKES HAVEN'T BEEN MADE SAYS DAVID L BIBB A GSA ASSISTANT PLANNING COMMISSIONER BUT WE'RE NOT IN GROSS DISARRAY SALES ARE SLUMPING AT THE NATION'S BIGGEST SHOPPING MALLS BUT GROWING AT OTHER TYPES OF SHOPPING CENTERS RETAIL SALES AT SUPERREGIONAL MALLS THOSE WITH AT LEAST THREE ANCHOR DEPARTMENT STORES HAVE FALLEN 73 SINCE 1990 AFTER RISING 18 IN THE PREVIOUS THREE YEARS ACCORDING TO A SURVEY OF MORE THAN 900 SHOPPING CENTERS BY THE URBAN LAND INSTITUTE A REALESTATE THINK TANK IN CONTRAST SALES AT SMALLER COMMUNITY SHOPPING CENTERS WHICH TYPICALLY HAVE A MAIN DISCOUNT STORE AND NEIGHBORHOOD STRIP CENTERS PROVIDING FOOD AND DRUG ESSENTIALS ROSE 151 AND 68 RESPECTIVELY IN THE LATEST THREE YEARS THE SURVEY FOUND THE NEIGHBORHOOD CENTERS HAVE HELD UP BETTER BECAUSE ESSENTIAL PURCHASES LIKE FOOD AND CLOTHING ARE MADE THERE SAYS DAVID ROBERT NELSON A DEVELOPER IN FARMINGTON HILLS MICH MALLS GET MORE DISCRETIONARY SPENDING HE ADDS AND SO WERE HIT HARDER BY THE RECESSION DESPITE THE SALES SLUMP THE BIG MALLS HAVE MAINTAINED STRONG BALANCE SHEETS JOHN BUCKSBAUM AN ENCINO CALIF ASSET MANAGER FOR A REALESTATE INVESTMENT TRUST SAYS EARNINGS AT THE BIGGEST MALLS ROSE 33 IN THE LATEST THREE YEARS BECAUSE TENANTS AGREED TO HIGHER RENTS IN RETURN FOR CONSTRUCTION EXTRAS GIVEN THE SLUMP IN SALES HOWEVER MICHAEL BEYARD SENIOR RESEARCH DIRECTOR FOR THE INSTITUTE SAYS IT IS UNCERTAIN HOW MUCH LONGER BALANCE SHEETS CAN STRENGTHEN DOWNTOWN LOS ANGELES HAD THE LOWEST OFFICE RENT OF 13 MAJOR MARKETS ONCE LANDLORD CONCESSIONS ARE INCLUDED ACCORDING TO A SURVEY LAST YEAR BY JULIEN J STUDLEY INC A COMMERCIAL REALESTATE BROKER IN NEW YORK SALES OF MILLIONDOLLAR HOMES IN CALIFORNIA FELL 16 LAST YEAR VS AN OVERALL DROP OF 7 IN THE STATE'S HOME SALES REPORTS DATAQUICK INFORMATION SYSTEMS SAN DIEGO 9305210033 930521 MARKETING BRIEF NEWS CORP MEDIA CONCERN COMPLETES 3 BILLION CREDIT FACILITY AUSTRALIA'S NEWS CORP SAID IT COMPLETED A NEW 3 BILLION REVOLVING CREDIT FACILITY A MAJOR STEP IN ITS FINANCIAL PLAN THE NEW FACILITY IS PROVIDED BY A GROUP OF 27 BANKS IN AUSTRALIA EUROPE AND THE US HAS A FINAL MATURITY DATE OF JUNE 30 1999 AND REDUCES THE MEDIA COMPANY'S BANK BORROWING RATES BY 75 BASIS POINTS PROCEEDS AND CASH ON HAND WILL BE USED TO REPAY THE COMPANY'S TWO PRINCIPAL BANK FACILITIES A 2 BILLION ARRANGEMENT WITH 146 FINANCIAL INSTITUTIONS AND A 901 MILLION STANDALONE FACILITY AT THE HARPERCOLLINS PUBLISHERS INC UNIT SINCE 1991 NEWS CORP HEADED BY RUPERT MURDOCH HAS SOLD 14 BILLION IN ASSETS AND RAISED 56 BILLION IN DEBT AND EQUITY TRANSACTIONS TOTAL DEBT HAS BEEN REDUCED BY MORE THAN 2 BILLION BANK DEBT HAS BEEN CUT TO LESS THAN 22 BILLION FROM 9 BILLION AND IS LESS THAN 35 OF TOTAL DEBT IN ADDITION DEBT MATURITY HAS BEEN EXTENDED FROM LESS THAN THREE YEARS TO MORE THAN EIGHT YEARS 9305210032 930521 BUSINESS BRIEF FLEET FINANCIAL GROUP INC PARTIAL REPURCHASING IS SET FOR TWO SERIES OF PREFERRED FLEET FINANCIAL GROUP INC OFFERED TO BUY BACK PORTIONS OF TWO SERIES OF PREFERRED STOCK THE PROVIDENCE RI BANK HOLDING COMPANY OFFERED 3050 APIECE FOR UP TO TWO MILLION OF ITS SERIES III DEPOSITARY SHARES EACH REPRESENTING A 25 INTEREST IN A SHARE OF SERIES III 1012 PERPETUAL PREFERRED IT OFFERED 2925 APIECE FOR UP TO TWO MILLION OF ITS SERIES IV DEPOSITARY SHARES EACH REPRESENTING A 25 INTEREST IN A SHARE OF SERIES IV 9375 PERPETUAL PREFERRED THE OFFER EXPIRES JUNE 18 1993 UNLESS EXTENDED BASED ON THAT DATE FLEET EXPECTS TO PAY ACCRUED DIVIDENDS OF 01265 PER SERIES III DEPOSITARY SHARE AND 01172 PER SERIES IV DEPOSITARY SHARE MERRILL LYNCH & CO IS DEALERMANAGER IN THE TENDER OFFER FLEET ALSO SAID IT HAS REPURCHASED ALL OF THE 150 MILLION OF PREFERRED STOCK ISSUED TO THE FEDERAL DEPOSIT INSURANCE CORP IN JULY 1991 IN CONNECTION WITH THE ACQUISITION OF THE BANK OF NEW ENGLAND 9305210031 930521 REVIEW & OUTLOOK EDITORIAL KANGAROO CONGRESS A MAJORITY OF HOUSE MEMBERS APPARENTLY OPPOSE THE 72 BILLION ENERGY TAX AND WOULD VOTE TO SUBSTITUTE A CAP ON ENTITLEMENT SPENDING BUT IT'S LIKELY A VOTE ON THAT IDEA WON'T EVEN BE ALLOWED WHEN THE CLINTON BUDGET GOES TO THE HOUSE FLOOR NEXT WEDNESDAY WHEN DEMOCRACY MEANS THEY MIGHT LOSE THE HOUSE LEADERSHIP PREFERS TO WIN VOTES THE OLDFASHIONED WAY THEY SHUT OFF REAL DEBATE AND CHOICES ANY BILL THAT GOES TO THE FULL HOUSE FIRST PASSES THROUGH THE 13MEMBER RULES COMMITTEE WHICH DECIDES HOW LONG THE DEBATE ON IT WILL LAST AND WHETHER IT WILL BE HANDLED UNDER AN OPEN OR CLOSED RULE AN OPEN RULE MEANS THE BILL IS OPEN TO ALL RELEVANT AMENDMENTS A CLOSED RULE SHARPLY LIMITS THE NUMBER OF AMENDMENTS OR DENIES THEM COMPLETELY AFTER PRESIDENT CLINTON'S MEETING WITH HOUSE DEMOCRATS ON WEDNESDAY THERE WAS GENERAL AGREEMENT HIS BUDGET WILL BE VOTED ON UNDER A CLOSED RULE THAT MEANS MODERATE HOUSE DEMOCRATS WON'T BE GIVEN A CHANCE FOR AN UP OR DOWN VOTE ON REPLACING THE ENERGY TAX WITH ENTITLEMENT CAPS THEY ARE STEAMING REP TIM PENNY OF MINNESOTA SAID THAT BY FORECLOSING ALTERNATIVES HOUSE LEADERS ARE IGNORING THE LEGITIMATE CONCERNS OF MODERATE DEMOCRATS IT'S AN INSULT TO SAY WE CAN'T BE PART OF THE PROCESS HE TOLD US FORMER REP DENNIS ECKART A LIBERAL OHIO DEMOCRAT WHO RETIRED LAST YEAR DECRIES THE INCREASING USE OF CLOSED RULES HE SAYS THEY ARE THE MOST DISTURBING PART OF HOW THE HOUSE OPERATES TODAY THE ACCOMPANYING CHART SHOWS HOW THE NUMBER OF OPEN RULES HAS SHRUNK TO VIRTUALLY NONE SEE ACCOMPANYING ILLUSTRATION WSJ MAY 21 1993 THIS YEAR 10 OF THE 11 BILLS DEBATED HAVE OPERATED UNDER THE EQUIVALENT OF A GAG ORDER THE FIRST KEY VOTE ON THE CLINTON TAX INCREASES WILL COME THIS WEDNESDAY WHEN THE HOUSE WILL VOTE ON WHETHER OR NOT TO APPROVE A CLOSED RULE GOVERNING DEBATE ON THE BILL MANY DEMOCRATIC MEMBERS ARE TELLING THE FOLKS BACK HOME THAT WHILE THEY DON'T LIKE THE ENERGY TAX OR HIGHER TAXES ON SENIOR CITIZENS THEIR HANDS ARE TIED A VOTE ON THOSE ISSUES WON'T BE ALLOWED THAT IS A DODGE IF ENOUGH MEMBERS VOTE TO DEFEAT THE CLOSED RULE AMENDMENTS TO THE CLINTON PACKAGE WILL BE IN ORDER VOTERS SHOULD KNOW THAT ANY MEMBER WHO VOTES FOR THE CLOSED RULE IS IN EFFECT SIGNING ON TO THE ENTIRE 260 BILLION CLINTON TAX INCREASE SOME HOUSE MEMBERS LED BY SCOTT KLUG OF WISCONSIN ARE ALERTING THE PUBLIC ON HOW DEBATE IS BEING MUZZLED THIS WEEK ROSS PEROT OFFERED TO HELP THIS EFFORT WITH ITS PLANNED NATIONWIDE DISTRIBUTION OF A VIDEOTAPE LAYING OUT THE CASE AGAINST THE CURRENT HOUSE RULES IT IS STARTLING HOW DEBASED THE OPERATION OF CONGRESS HAS BECOME THE HOUSE OF REPRESENTATIVES THE CHAMBER INTENDED BY THE FOUNDING FATHERS TO BE CLOSEST TO THE PEOPLE IS ABOUT TO STAGE A DEBATE ON THE LARGEST TAX INCREASE IN AMERICAN HISTORY AND PROBABLY WON'T EVEN ALLOW FULL PUBLIC DELIBERATION ON IT THIS IS NOT CHANGE 9305210030 930521 FINANCING BUSINESS LA QUINTA MOTOR INNS INC LA QUINTA MOTOR INNS INC SAN ANTONIO SAID IT SOLD 120 MILLION OF 925 SENIOR SUBORDINATED NOTES DUE 2003 IN A PUBLIC OFFERING TO A GROUP OF INSTITUTIONAL INVESTORS IT DIDN'T IDENTIFY THE HOTEL CHAIN INCREASED THE AMOUNT OF THE OFFERING FROM THE 100 MILLION IT PREVIOUSLY ANNOUNCED BECAUSE A SPOKESWOMAN SAID THE OFFERING WAS OVERSUBSCRIBED LA QUINTA SAID IT WILL USE THE PROCEEDS TO REFINANCE 742 MILLION OF EXISTING DEBT FOR ACQUISITIONS AND FOR GENERAL CORPORATE PURPOSES THE OFFERING WAS UNDERWRITTEN BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND BT SECURITIES CORP 9305210029 930521 AUTOS HONDA AIMS TO REVERSE FORTUNES WITH RETOOLED INTEGRA ACCORD BY MICHAEL WILLIAMS AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO IF HONDA MOTOR CO IS TO RECAPTURE ITS OLD MAGIC IT'S GOING TO NEED A LOT OF HELP FROM REVAMPED CARS LIKE THE INTEGRA WHICH ROLLS INTO JAPANESE SHOWROOMS TODAY AND HONDA'S ACURA DEALERSHIPS IN THE US THIS SUMMER HONDA BROADENED ITSELF FROM A MOTORCYCLE MAKER INTO A WORLDCLASS CAR COMPANY BY FINDING AND FILLING LUCRATIVE NICHES WITH DISTINCTIVE CARS THAT WERE FUN TO DRIVE BUT AS HONDA'S SALES HAVE GROWN ITS OWN DEALERS SAY IT HAS STOPPED TAKING THE DESIGN RISKS IT ONCE DID IT HAS ALSO FAILED TO BUILD TOPNOTCH MARKETING NETWORKS IN THE US AND JAPAN SAY SOME ANALYSTS AND INDUSTRY EXECUTIVES AND THE STRONG YEN HAS FORCED IT TO RAISE PRICES IN AMERICA AS A RESULT HONDA'S MARKET SHARE HAS SLIPPED IN THE US AND JAPAN THIS WEEK HONDA SAID ITS EARNINGS FELL 41 IN THE YEAR ENDED MARCH 31 AND THE SLUMP WILL CONTINUE THIS YEAR HONDA EXPECTS A 40 DROP IN PROFIT FOR THE YEAR ENDING NEXT MARCH 31 HONDA TOOK THE WRAPS OFF THE THREEDOOR COUPE VERSION OF THE INTEGRA YESTERDAY A FEW MONTHS AHEAD OF THE EVEN MORE IMPORTANT INTRODUCTION OF ITS NEW MIDSIZE ACCORD MODEL HONDA SAYS THAT THE NEW INTEGRA IS PROOF THAT THE CAR MAKER HASN'T LOST TOUCH WITH ITS INNOVATIVE ROOTS THE CAR HAS HONDANESS BOASTS HIROYUKI ITOH A TOP ENGINEER IN THE INTEGRA REDESIGN BUT EVEN IF THE STYLISTS AND ENGINEERS REV UP ENTHUSIASM FOR THE INTEGRA AND MORE CRUCIALLY THE ACCORD THE COMPANY FACES SOME ROUGH GOING AS IT TRIES TO REVERSE THE DECLINE IN ITS PROFITABILITY IN THE LONG TERM THE BIGGEST CHALLENGE IS DEALING WITH A HEAVY RELIANCE ON THE US MARKET AND A RELATIVELY NARROW RANGE OF CARS THAT'S BECAUSE SOME OF THE NICHES HONDA CARVED OUT IN THE US ESPECIALLY WITH THE ACCORD ARE NOW SWARMING WITH TOUGH RIVALS THE NEW TOPOFTHELINE THREEDOOR INTEGRA PACKING A PUNCHY 180HORSEPOWER 18 LITER ENGINE AND STANDARD AIR CONDITIONING LISTS IN JAPAN FOR A BIT MORE THAN TWO MILLION YEN 18072 ABOUT 1000 MORE THAN THE OLD VERSION WHICH HAD A SMALLER ENGINE THE NEW BASE MODEL WITH A SMALLER ENGINE LISTS FOR ABOUT 13 MILLION YEN 11747 A FOURDOOR VERSION OF THE INTEGRA COMES OUT IN A FEW MONTHS PRICES FOR THE US HAVEN'T YET BEEN RELEASED CAR ENTHUSIASTS IN JAPAN SAY THE NEW CAR IS JUST THE TICKET FOR THE BUYER IT APPEALS TO YOUNG DRIVERS IN THEIR 20S AND 30S WHO WANT A CAR WITH ZIP WITH ITS STRONGER ENGINE AND FOUR SMALL ROUND HEADLAMPS THE CAR SHOWS THE COMPANY'S TRADITIONAL FLAIR THEY SAY HONDA SEEMS TO HAVE AWAKENED TO ITS ORIGINAL INNOVATIVE POTENTIAL AND TO HAVE DECIDED TO FIGHT AGAIN WITH THAT POTENTIAL SAYS AKIHIKO YOSHIDA EDITOR OF CAR SENSOR A POPULAR JAPANESE BIWEEKLY FOR AUTO BUFFS HONDA ITSELF SAYS THE INTEGRA IS A NICHE CAR IT EXPECTS TO SELL 2500 A MONTH OF THE THREEDOOR VERSION IN JAPAN THAT TRANSLATES TO ABOUT 30000 A YEAR UP FROM 20000 OF THE AGING MODEL LAST YEAR HONDA SOLD A TOTAL OF ABOUT 53000 INTEGRAS IN JAPAN AND 55000 IN THE US IN 1992 BY CONTRAST IT SOLD NEARLY 39000 ACCORDS IN JAPAN AND MORE THAN 393000 ACCORDS IN THE US IN 1992 THE COMPANY WOULDN'T SAY HOW MANY NEW INTEGRAS IT HOPES TO SELL OUTSIDE JAPAN A FAR TOUGHER TEST COMES IN SEPTEMBER WHEN HONDA IS EXPECTED TO UNVEIL ITS REMODELED ACCORD ITS BESTSELLING CAR IN THE US WHICH IS ITS BIGGEST MARKET AS THE ACCORD HAS AGED HONDA HAS BEEN STRUGGLING IN AMERICA THE ACCORD WAS AMERICA'S TOPSELLING PASSENGER CAR FOR THREE YEARS IN A ROW BEFORE FORD MOTOR CO'S TAURUS BUMPED ASIDE THE AGING HONDA MODEL LAST YEAR NOW THE COMPANY'S SHARE OF THE RECOVERING US PASSENGERCAR MARKET HAS SLIPPED FROM A PEAK OF 98 IN 1991 TO 75 IN THE FIRST FOUR MONTHS OF 1993 OBSERVERS SAY THE NEW ACCORD WILL ALMOST CERTAINLY GIVE A STURDY BOOST TO HONDA'S SALES AND THAT THE WORST OF HONDA'S TROUBLES MAY BE BEHIND IT STILL THE ACCORD FACES A LOT MORE COMPETITION THAN IT ONCE DID INCLUDING NEW ENTRIES LIKE CHRYSLER CORP'S LH SEDANS AND NISSAN MOTOR CO'S ALTIMA FROM THAT POINT OF VIEW THE NEW ACCORD ALONE WON'T BE ENOUGH TO PULL HONDA OUT OF ITS MESS SAYS AN OFFICIAL AT A RIVAL JAPANESE CAR MAKER HONDA'S PROBLEM ISN'T JUST AGING MODELS AND CROWDED SEGMENTS IN THE US SAYS THE JAPANESE CAR EXECUTIVE HONDA BLUNDERED BY FAILING TO HONE THE SKILLS OF ITS DEALERS HONDA'S DEALERS WERE SPOILED HE SAYS WHEN THE ACCORD WAS HOT THEY DID LITTLE BUT DELIVER CARS TO CUSTOMERS BUT ONCE RIVAL CAR MAKERS STARTED PUTTING OUT CARS COMPETITIVE WITH THE ACCORD HE SAYS HONDA'S ONCECOMFORTABLE DEALERS SEEMED UNABLE TO STEM THE CAR'S LOSS OF MARKET SHARE A HUNGRIER MORE SKILLED SALES FORCE WOULD HAVE ALLOWED HONDA TO HOLD UP BETTER AGAINST THE TAURUS HE SAYS ANALYSTS SAY HONDA'S JAPANESE MARKETING NEEDS WORK TOO THE JAPANESE MARKET ACCOUNTS FOR JUST A THIRD OF HONDA'S AUTO SALES A MUCH LOWER PERCENTAGE THAN AT MOST OTHER BIG JAPANESE CAR COMPANIES THE COMPANY IS ALSO TAKING LARGE LOSSES ON CURRENCY FLUCTUATIONS WHICH IT CITES AS THE MAIN REASON FOR ITS GLOOMY FORECAST FOR THIS YEAR THEN THERE IS HONDA'S RELATIVELY SLIM PRODUCT LINE WHICH LACKS VEHICLES LIKE MINIVANS AND PICKUP TRUCKS HONDA SAYS ITS US DEALERS ARE SOLID AND CITES THE COMPANY'S STRONG SHOWINGS IN AMERICAN CUSTOMERSATISFACTION SURVEYS AS EVIDENCE OF LOYALTY TO ITS DEALERSHIPS AS WELL AS TO ITS CARS AS FOR ITS JAPANESE MARKETING NETWORK IT'S ONLY NATURAL THAT ITS BIG RIVALS HAVE AN EDGE SAYS A HONDA SPOKESMAN TOYOTA MOTOR CORP AND NISSAN HAVE BEEN AROUND A LOT LONGER THE COMPANY IS DEVELOPING A MINIVAN AND WILL MARKET SPORTSUTILITY VEHICLES MADE BY ISUZU MOTORS LTD WHICH HONDA SAYS WILL HELP FILL HOLES IN ITS LINEUP SOME DEALERS IN JAPAN MEANWHILE COMPLAIN THAT HONDA SIMPLY ISN'T DELIVERING INTRIGUING CARS THE WAY IT ONCE DID AS THEY SEE IT HONDA HAS CHOSEN TO PROTECT ITS EXISTING MARKET SHARE WITH CONSERVATIVE CARS RATHER THAN CHASING CUSTOMERS WITH CARS THAT STAND OUT THE WAY IT USED TO THE TREND STARTED ABOUT FOUR YEARS AGO SAYS SATORU IKEDA WHO RUNS A HONDA DEALERSHIP IN TOKYO THE AUTO MAKER HAS GROWN TOO DEPENDENT ON MARKET SURVEYS THAT'S WHAT TOYOTA AND NISSAN DO TO COME UP WITH A CAR ACCEPTABLE FOR EVERYONE BUT THAT'S A DANGEROUS GAME MR IKEDA THINKS IF HONDA CONTINUES TO FOCUS ON MARKET SHARE IT WILL GO IN THE SAME DIRECTION AS TOYOTA WHICH MEANS HONDA WOULD BE SELLING SIMILAR CARS AGAINST A MUCH BIGGER MARKETING MACHINE STILL THE EXISTING ACCORD CONSERVATIVE OR NOT SOLD LIKE HOT CAKES IN THE US FOR YEARS HONDA ISN'T SAYING WHETHER IT WILL PLAY WITH THE FORMULA THE COMPANY'S PRESIDENT NOBUHIKO KAWAMOTO ONLY SMILES WHEN ASKED IF THE ACCORD WILL GET A SPRUCING UP SIMILAR TO THE INTEGRA'S IT WILL BE GOOD HE SAYS 9305210028 930521 OUR PENSIONS PRIVATIZE SOCIAL SECURITY BY ROBERT GENETSKI REPUBLICANS ARE GROPING AROUND FOR ALTERNATIVE PROPOSALS TO THE DEMOCRATS' NEW TAX LAWS THEY'RE TALKING ABOUT PUSHING FOR FUNDAMENTAL CHANGE IN THE WAY OUR GOVERNMENT TAXES AND SPENDS AND FUNDAMENTAL CHANGE THAT CAN TURN AMERICANS FROM SPENDERS TO SAVERS IF THEY'RE SERIOUS A GOOD PLACE TO START WOULD BE SOCIAL SECURITY IN ITS PRESENT FORM SOCIAL SECURITY IS A TICKING BOMB BY TAXING A LARGE PART OF A WORKER'S INCOME AND PROMISING SECURITY THE SYSTEM REDUCES THE WORKER'S ABILITY AND INCENTIVE TO SAVE AND HINDERS LONGTERM GROWTH ALTHOUGH THE PROGRAM WAS INITIALLY DESIGNED TO INVEST FUNDS FOR RETIREMENT IT WAS CHANGED TO A PAYASYOUGO SYSTEM IN 1939 THIS MEANS THAT MONEY COLLECTED FROM CURRENT WORKERS AND EMPLOYERS IS IMMEDIATELY PAID OUT IN BENEFITS TO RETIREES IT RESEMBLES WHAT IS COMMONLY KNOWN AS A PONZI OR PYRAMID SCHEME A SYSTEM THAT PAYS OFF EARLY INVESTORS WITH THE MONEY OF LATER INVESTORS BUT GENERATES NO REAL GROWTH LIKE ALL PONZI SCHEMES THE SOCIAL SECURITY SYSTEM IS COMING UNDER INCREASING STRAIN TO ALLAY WORRIES THE SOCIAL SECURITY TRUSTEES ISSUE A SYSTEM STATUS REPORT ANNUALLY THESE REPORTS HAVE BEEN IRRESPONSIBLE TO A TROUBLING DEGREE THIS YEAR THE TRUSTEES INDICATE THAT THE TRUST FUNDS ARE IN EXCELLENT SHAPE FOR ABOUT THE NEXT 45 YEARS THE TRUSTEES ARE ALWAYS CONFIDENT ABOUT THE FINANCIAL HEALTH OF SOCIAL SECURITY BECAUSE THEY VIEW THE SYSTEM AS A SEPARATE ENTITYISOLATED FROM THE ECONOMY AND FROM THE REST OF GOVERNMENT FROM THEIR PERSPECTIVE THE SYSTEM HAS 331 BILLION IN ASSETS AND IS EXPECTED TO GENERATE SURPLUSES ESTIMATED AT 50 BILLION TO 100 BILLION FOR THE NEXT 10 YEARS THEREBY ENSURING ITS VIABILITY IN THE REAL WORLD SOCIAL SECURITY CANNOT BE VIEWED IN ISOLATION IT IS INEXTRICABLY TIED TO THE REST OF THE GOVERNMENT AND TO THE ECONOMY THE CURRENT SURPLUSES WITH WHICH THE TRUSTEES ARE ENAMORED ARE BEING SPENT BY THE TREASURY ON OTHER GOVERNMENT PROGRAMS IN RETURN THE TREASURY SENDS THE TRUST FUND IOUS THAT THE TRUSTEES VIEW AS THE SYSTEM'S ASSETS AT THE END OF LAST YEAR THE SOCIAL SECURITY FUND DID INDEED HAVE ASSETS OF 331 BILLION OR JUST OVER ONE YEAR'S OBLIGATIONS HOWEVER FOR THE SYSTEM TO USE THESE ASSETS THE TREASURY HAS TO REPAY ITS IOUS BY SELLING MORE DEBT CUTTING OTHER GOVERNMENT PROGRAMS OR MORE LIKELY RAISING TAXES THE TRUSTEES ADMIT THAT SOME PROBLEMS WILL BEGIN TO APPEAR AS THE BABY BOOMERS REACH RETIREMENT AGE AND THERE ARE ONLY TWO WORKERS TO SUPPORT EACH RETIREE COMPARED WITH 32 WORKERS CURRENTLY UNDER THEIR MOST LIKELY SCENARIO BENEFITS ARE EXPECTED TO EXCEED CONTRIBUTIONS WITHIN 25 YEARS UNDER THEIR PESSIMISTIC SCENARIO THIS OCCURS IN FIVE YEARS AMONG THE PESSIMISTIC ASSUMPTIONS ARE A SLIGHT INCREASE IN THE AVERAGE LIFE SPAN A MAJOR BREAKTHROUGH IN LIFE EXPECTANCY WOULD BE A CATASTROPHE FOR THE SYSTEM THE TRUSTEES' PALLIATIVE FOR COVERING ANY SHORTFALL IS RAISING TAXES THE PROBLEM IS THAT THEIR PRESUMPTIONS ABOUT ECONOMICS ARE FAULTY THEY FAIL TO TAKE INTO ACCOUNT THAT AS TAXES GO UP THE ECONOMY WEAKENS IF WORKERS IN THE YEAR 2030 HAVE TO PAY CLOSE TO 40 OF THEIR INCOMES FOR SOCIAL SECURITY TAXES ALONE THE TOTAL TAX BURDEN WILL KILL MOST BUSINESS ACTIVITY WHAT WILL ACTUALLY HAPPEN AND IS ALREADY HAPPENING IS THAT THE GOVERNMENT WILL WELSH ON ITS PROMISES FOR EXAMPLE AT THE TIME OF THE LAST MAJOR REFORM RETIREMENT WAS POSTPONED UNTIL AGE 67 FOR SOME WORKERS MANY AMERICANS EVEN THOSE WHO DON'T LIVE OFF THEM WOULD LIKE TO THINK OF THEIR SOCIAL SECURITY CHECKS AS A SURE THING YET EVEN THOUGH WORKERS PAY AS MUCH AS 15 OF THEIR INCOMES INTO THE SYSTEM COUNTING THE EMPLOYER'S MATCHING CONTRIBUTION THEY HAVE NO LEGAL CLAIM TO THEIR SOCIAL SECURITY IN 1960 THE SUPREME COURT IN FLEMMING V NESTOR RULED THAT WORKERS DO NOT HAVE ANY ACCRUED PROPERTY RIGHTS ASSOCIATED WITH SOCIAL SECURITY THIS MEANS THAT BENEFITS IF ANY ARE ENTIRELY GOVERNED BY THE WHIM OF CONGRESS WHICH WAS CLEVER ENOUGH TO MAKE SURE ITS OWN PENSION SYSTEM WAS NOT PART OF SOCIAL SECURITY WHEN MOST WORKERS AND RETIREES LEARN THAT THE GOVERNMENT HAS NOT INVESTED THEIR RETIREMENT MONEY AND THAT THEY HAVE NO LEGAL CLAIM TO THEIR PREVIOUS CONTRIBUTIONS THEY REACT WITH SHOCK AND DISBELIEF ONE USEFUL PRIVATIZATION MODEL FOR US SOCIAL SECURITY IS THE PLAN ADOPTED BY CHILE IN 1981 THE CHILEAN SYSTEM OFFERED WORKERS THE OPTION OF STAYING IN THEIR SOCIAL SECURITY SYSTEM OR OPTING OUT AND PLACING AT LEAST 10 OF THEIR RETIREMENT INCOME INTO THEIR OWN PRIVATE INVESTMENT ACCOUNTS AFTER MORE THAN A DECADE UNDER A PRIVATE SOCIAL SECURITY SYSTEM CHILE'S ECONOMY IS FLOURISHING CHILE'S GROWTH HAS AVERAGED CLOSE TO 7 ANNUALLY OVER THE PAST DECADE THE BUILDUP OF FUNDS IN THE WORKERS' RETIREMENT ACCOUNTS HAS PRODUCED A 29 SAVINGS RATE WHICH IS ENABLING CHILE TO FUND A HUGE PRIVATESECTOR INVESTMENT BOOM OUT OF DOMESTIC SAVINGS INSTEAD OF RESENTING THE RICH CHILE'S WORKERS THEMSELVES ARE BECOMING RICH THE US COULD FOLLOW CHILE'S LEAD AND GIVE ALL WORKERS THE OPPORTUNITY TO OPT OUT OF THE PRESENT SYSTEM THOSE WHO ARE NOW RETIRED OR NEARING RETIREMENT WOULD NO DOUBT WANT TO REMAIN IN THE SYSTEM THOSE WHO REMAIN IN THE SYSTEM INCLUDING ALL CURRENT RETIREES SHOULD BE GIVEN PROPERTY RIGHTS TO THEIR RETIREMENT BENEFITSRIGHTS THAT COULD NOT BE RESCINDED WHENEVER A NEW ADMINISTRATION HAD SOME BRIGHT IDEA ABOUT CHANGING SOCIAL SECURITY TAX RATES OR RETIREMENT AGES OLDER WORKERS WHO OPT OUT WOULD GET GOVERNMENT BONDS EQUAL TO A PORTION OF THEIR LIFETIME CONTRIBUTIONS THESE BONDS WOULD ENSURE THAT NO ONE OPTING OUT OF THE SYSTEM IS WORSE OFF FINANCIALLY THAN HE WOULD HAVE BEEN HAD HE REMAINED MOST WORKERS WOULD BE BETTER OFF SINCE THE RETURNS TO SOCIAL SECURITY PAYMENTS ARE ROUGHLY ZERO THOSE WHO ARE YOUNGER WOULD NEED ONLY A SMALL ADJUSTMENT SINCE THEY WOULD BENEFIT MOST FROM A LIFETIME OF PRIVATE SAVINGS REVERSING A PYRAMID SCHEME IS NEVER EASY DURING THE TRANSITION PERIOD THE GOVERNMENT WOULD HAVE TO BORROW AS MUCH AS 350 BILLION A YEAR TO MAKE UP FOR THE LOSS OF SOCIAL SECURITY CONTRIBUTIONS THIS ADDITIONAL DEBT WOULD BE ENTIRELY OFFSET BY THE NEW SAVINGS THAT GOES INTO EACH WORKER'S RETIREMENT ACCOUNT IN THE FIRST FEW YEARS THE MAIN DIFFERENCE BETWEEN A PRIVATE RETIREMENT SYSTEM AND THE PRESENT SOCIAL SECURITY SYSTEM WOULD BE A DIFFERENCE IN ACCOUNTING WAGE EARNERS WOULD BE KEEPING THEIR RETIREMENT MONEY IN THEIR OWN ACCOUNTS INSTEAD OF HANDING IT OVER TO THE GOVERNMENT OVER TIME AS THE RETURNS TO PRIVATE INVESTMENT EXCEED THOSE FROM THE GOVERNMENT PROGRAM SAVINGS WOULD INCREASE THE INCREASES WOULD BECOME PROGRESSIVELY GREATER WHEN INDIVIDUALS BEGIN TO RETIRE WITH THEIR OWN FUNDS AND GOVERNMENT LIABILITIES START TO DECLINE ALSO SINCE POLITICIANS WOULD NO LONGER HAVE ACCESS TO RETIREMENT CONTRIBUTIONS THERE IS A GREATER CHANCE THAT SURPLUSES WOULD BE USED FOR THEIR INTENDED PURPOSES ALL OF THESE FACTORS WOULD LEAD TO A SIGNIFICANT BOOST IN SAVINGS AND GROWTH IN FUTURE YEARS TO SHOW HOW POWERFUL THE RESULTS CAN BE ASSUME THAT A 20YEAROLD WORKER EARNING 20000 A YEAR WERE TO PUT 112 OF THAT INCOME INTO A RETIREMENT ACCOUNT EACH YEAR 112 IS THE COMBINED EMPLOYEREMPLOYEE CONTRIBUTION TO THE OASI THE OLDAGE AND SURVIVORS INSURANCE PORTION OF THE SOCIAL SECURITY PROGRAM IF THESE FUNDS EARNED 6 A YEAR AND THE WORKER NEVER GOT A RAISE THAT WORKER WOULD RETIRE WITH 575000 IN INVESTABLE FUNDS AT AGE 67 MANY BELIEVE THAT THE MAIN BARRIER TO ADOPTING A PRIVATE SOCIAL SECURITY SYSTEM IS THE INCREASE IN PUBLIC DEBT THAT WOULD ACCOMPANY THE TRANSITION PERIOD HOWEVER UNLIKE CURRENT DEBT EACH DOLLAR OF THE NEW DEBT WOULD BE MORE THAN OFFSET BY NEW SAVINGS THE REAL OBJECTION TO PRIVATIZING SOCIAL SECURITY IS THAT IT WOULD SHIFT TREMENDOUS POWER AND INFLUENCE FROM POLITICIANS TO INDIVIDUAL WORKERS THE WORD SACRIFICE HAS BEEN PROMINENT IN MANY RECENT DISCUSSIONS OF ECONOMIC POLICY CHANGES TO BRING ABOUT PRIVATIZATION POLITICIANS WOULD HAVE TO MAKE TRUE SACRIFICESNOT JUST THE GIMMICKRY WE'VE SEEN LATELY BUT IT WOULD BE WORTH IT MR GENETSKI HEADS ROBERT GENETSKI & ASSOCIATES CHICAGOBASED ECONOMIC AND FINANCIAL ADVISERS 9305210026 930521 WHO'S NEWS OCTUS INC OCTUS INC SAN DIEGO THEODORE H SWINDELLS AND LOUIS KLEIN JR WERE ELECTED DIRECTORS OF THIS DEVELOPER OF COMPUTERTELEPHONE INTEGRATION PRODUCTS INCREASING THE BOARD TO SEVEN MR SWINDELLS 34 YEARS OLD IS DIRECTOR OF FORT POINT FINANCIAL GROUP'S SAN FRANCISCO OFFICE MR KLEIN 57 IS A FINANCIAL CONSULTANT THE COMPANY ALSO SAID TERRY E VANDEWARKER 41 WAS NAMED VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER OF THE CONCERN MR VANDEWARKER PREVIOUSLY WITH BRIERLEY INVESTMENTS LTD SUCCEEDS GENE CANDELORE 61 WHO WAS ACTING CHIEF FINANCIAL OFFICER IN ADDITION TO HIS CONTINUING POSITION AS VICE PRESIDENT OPERATIONS 9305210025 930521 POTOMAC WATCH MAYBE WE ELECTED THE WRONG NEW DEMOCRAT BY PAUL A GIGOT SOMETIMES WISDOM GROWS MORE FROM DEFEAT THAN VICTORY MAYBE THAT EXPLAINS WHY SEN BOB KERREY IS NOW MAKING MORE SENSE THAN PRESIDENT CLINTON AND WHY THE PRESIDENT'S TAX PLAN MAY YET BE HEADED FOR A LOBOTOMY SO TO SPEAK ONLY 15 MONTHS AGO BOTH MEN WERE BABYBOOM PRESIDENTIAL CONTENDERS MR KERREY THE FORMER NEBRASKA ENTREPRENEUR AND VIETNAM WAR HERO WAS ACTUALLY RUNNING TO THE SOUTHERN GOVERNOR'S LEFT WITH PROTECTIONIST ADS AND A NATIONAL HEALTHCARE PLAN NOW MR CLINTON IS THE ONE PANDERING TO LIBERALS BOTH GRAYER AND WISER AT THE TEMPLES MR KERREY NOW OFFERS A CRITIQUE OF THE CLINTON TAX PROGRAM THAT SUGGESTS THE COUNTRY ELECTED THE WRONG NEW DEMOCRAT THE ENERGY TAX IT'S AN ACADEMIC TAX THE SORT OF THING PEOPLE DREAM UP IN COLLEGE HE SAYS WILL HE VOTE FOR THE CLINTON PLAN NOT IF THAT TAX IS IN THE BILL HE ALSO WANTS A CUT AND CAP ON ENTITLEMENT SPENDING FOR ME IT'S THE PRICE OF VOTING FOR THE ENTIRE PLAN AND WHY'D HE VOTE AGAINST THE FILIBUSTERED STIMULUS BILL THEY WERE LUCKY THEY GOT THE VOTES 52 THEY DID HE SAYS THERE WEREN'T 45 PEOPLE IN HERE WHO LIKED THAT THING WITH SUCH CANDOR MR KERREY SOUNDS LIKE ANOTHER DEFEATED CONTENDER JACK KEMP WHO BECAME A FRIENDLY CRITIC OF ANOTHER PUZZLING PRESIDENT GEORGE BUSH I HAVE TO MAKE THE CASE FOR ENTREPRENEURIAL CAPITALISM UNTIL EVEN JACK KEMP IS EMBARRASSED BY IT MR KERREY SAYS NO IRONY INTENDED IN FACT MR KERREY NOW HAS MORE LEVERAGE IN THE SENATE THAN MR KEMP EVER DID IN THE BUSH CABINET HE'S ONE OF SEVEN TO 10 CENTRIST DEMOCRATS WHO IF THEY REFUSE TO VOTE FOR THE CLINTON PLAN COULD FORCE THE PRESIDENT TO PROPOSE A LESS TAXING MORE PROGROWTH PROGRAM I THINK WE CAN GET EIGHT DEMOCRATS AGAINST THE ENERGY TAX MR KERREY SAYS HE'D THEN REPLACE THE 70 BILLION BUDGET HOLE WITH SPENDING CUTS WITH EVEN MORE CUTS TO FOLLOW HIS PREDICTION MAY HAVE BEGUN TO UNFOLD YESTERDAY WITH THE TAX REBELLION OF DEMOCRATIC SENS BENNETT JOHNSTON LOUISIANA AND DAVID BOREN OKLAHOMA THEIR UPRISING INDUCED FRANTIC CALLS AND SPIN CONTROL FROM THE WHITE HOUSE AND WORD AROUND THE SENATE FINANCE COMMITTEE IS THAT CHAIRMAN DANIEL PATRICK MOYNIHAN WAS FUMING SOME DEMOCRATS CAN'T ADMIT THAT THE ONLY THING WORSE THAN NOT PASSING THE LARGEST TAX INCREASE IN HISTORY IS PASSING IT MR CLINTON SHOWED HIS OWN TUNNEL VISION WHEN HE LAPSED IMMEDIATELY INTO CARVILLESQUE CLASSWAR RHETORIC TO DENOUNCE THE SENATORS' TAX ALTERNATIVES SOMEONE SHOULD TELL HIM GEORGE BUSH HAS LEFT TOWN BESIDES THE REBEL PROPOSAL IS ITSELF MUCH LESS IMPORTANT THAN THE SIGNAL IT SENDS ABOUT THE CLINTON PLAN'S VULNERABILITY THE PRESIDENT SHOULD SIT DOWN WITH MR KERREY WHO SAYS BUDGET POLITICS HAVE CHANGED IN WAYS MR CLINTON COULD USE TO HIS ADVANTAGE WHAT THE PRESIDENT DID IN HIS STATE OF THE UNION ADDRESS WAS OPEN A WINDOW THAT MADE IT POSSIBLE FOR DEMOCRATS TO VOTE FOR SPENDING REDUCTIONS THE SENATOR SAYS THERE ARE VOTES FOR SPENDING CUTS BECAUSE THAT'S WHAT THE COUNTRY WANTS SO INSTEAD OF RESISTING CUTS AND LOOKING LIKE A HOSTAGE TO LIBERALS MR CLINTON SHOULD EMBRACE THEM IF WE END THIS CONGRESSIONAL YEAR WITH A BIG VERIFIABLE SPENDING REDUCTION HE WALKS TO REELECTION MR KERREY SAYS IT'S THE DEMOCRATIC EQUIVALENT OF DESERT STORM HE'S EVEN WILLING TO HACK AWAY AT THE AGRICULTURE DEPARTMENT THE PATRON SAINT OF NEBRASKA FARMERS INTRIGUINGLY MR KERREY IS ALSO PART OF A BIPARTISAN SENATE CABAL QUIETLY WORKING TOWARD EVEN MORE RADICAL TAX CHANGES ALONG WITH DEMOCRAT SAM NUNN AND REPUBLICAN PETE DOMENICI AMONG OTHERS HE FAVORS A CONSUMED INCOME TAX ALSO KNOWN AS A SUPER IRA INDIVIDUAL RETIREMENT ACCOUNT TO REPLACE THE CURRENT INCOME TAX THE IDEA IS THAT ALL INDIVIDUAL SAVINGS WOULD BE EXEMPT FROM TAX THE INCOME TAX I'M FED UP WITH IT SAYS MR KERREY WHO STARTED A RESTAURANT CHAIN WE NEED TO FIND A WAY TO HELP ENTREPRENEURS CREATE JOBS WHY DIDN'T MR CLINTON PROPOSE SOMETHING SO BOLD BECAUSE HE WAS TOLD INCORRECTLY THAT CONGRESS WOULDN'T GO FOR IT HE SAYS A CYNICAL VIEW IS THAT MR KERREY IS ONLY POSITIONING HIMSELF FOR HIS OWN REELECTION IN 1994 OR PERHAPS FOR ANOTHER PRESIDENTIAL TRY IN 1996 BUT HE IS POPULAR ENOUGH IN NEBRASKA TO BE FAIRLY SAFE NEXT YEAR AN UNCYNICAL VIEW IS THAT HE LEARNED SOMETHING FROM THE ROUGH AND TUMBLE OF A PRESIDENTIAL RUN HE'S NOW LIBERATED TO BE BOLDER LESS ORTHODOX IT IS MR CLINTON ON THE OTHER HAND WHO HAS SO FAR SEEMED HOSTAGE TO BELTWAY CONVENTION HE LET HIS ECONOMIC PLAN BE DICTATED BY LIBERALS RATHER THAN REACH OUT TO A BIPARTISAN COALITION OF REPUBLICANS AND PEROT VOTERS HE ALSO SEEMS TO BELIEVE THAT THE LESSON OF JIMMY CARTER'S FAILURE IS THAT HIS MAIN THREAT IN 1996 WOULD BE A TED KENNEDYLIKE CHALLENGE FROM THE LEFT THEREFORE HE MUSN'T OFFEND ANY LIBERALS MR KERREY UNDERSTANDS THAT THE NEW CENTER OF GRAVITY IN AMERICAN POLITICS IS WITH THE PEROT VOTERS AND OTHERS WHO WANT MORE FOR THE MONEY THEY ALREADY PAY GOVERNMENT BEFORE THEY WANT MORE GOVERNMENT IT'S WORTH RECALLING THAT IF GEORGE BUSH HAD LISTENED TO JACK KEMP HE MIGHT STILL BE PRESIDENT 9305210024 930521 TECHNOLOGY & HEALTH EPA WILL EXPAND REQUIRED REPORTING FOR TOXIC CHEMICALS WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY WILL EXPAND ITS REPORTING REQUIREMENTS FOR EMISSIONS OF TOXIC CHEMICALS AN AGENCY OFFICIAL SAID THE AGENCY ON TUESDAY WILL ISSUE ITS ANNUAL INVENTORY OF TOXIC CHEMICALS THAT CHARTS 320 CHEMICAL EMISSIONS FROM INDUSTRIAL PLANTS AT THE SAME TIME CAROL BROWNER THE AGENCY'S ADMINISTRATOR PLANS TO ANNOUNCE THAT INDUSTRY WILL BE REQUIRED IN FUTURE REPORTS TO SUBMIT DATA ON AT LEAST 200 ADDITIONAL TOXIC CHEMICALS EMITTED AS WASTE AN EPA OFFICIAL SAID THE EPA OFFICIAL WAS UNABLE TO IDENTIFY WHICH CHEMICALS WOULD BE ADDED TO THE LIST BUT THE AGENCY HAS LONG BEEN PLANNING TO EXPAND THE INVENTORY TO INCLUDE CHEMICALS PRODUCED OR USED AT A HIGH VOLUME BY PLANTS AROUND THE COUNTRY CURRENTLY 24000 INDUSTRIAL PLANTS ARE REQUIRED TO REPORT ON TOXIC EMISSIONS UNDER THE 1986 EMERGENCY PLANNING AND COMMUNITY RIGHT TO KNOW ACT 9305210023 930521 CORRECTIONS & AMPLIFICATIONS FINGERHUT COS SAID A FEDERAL GRAND JURY IS INVESTIGATING ALLEGATIONS OF COMMERCIAL BRIBERY AND KICKBACKS ON THE PART OF A FIRED CHIEF JEWELRY BUYER BUT THE COMPANY SAID IT ISN'T A TARGET OR SUBJECT OF THE PROBE A SUMMARY ITEM IN THE WHAT'S NEWS COLUMN YESTERDAY INCORRECTLY SAID FINGERHUT ITSELF WAS BEING INVESTIGATED BY THE GRAND JURY BWIP HOLDING INC IS A MAKER OF INDUSTRIAL PUMPS AND FLUIDCONTROL SYSTEMS AN ITEM YESTERDAY INCORRECTLY IDENTIFIED THE COMPANY AS AN INVESTMENT BANKING CONCERN CONTROLLING SUCH OPERATIONS ALSO PRINCIPALS OF AN INVESTMENT BANKING CONCERN RECENTLY LEFT BWIP'S BOARD AFTER SELLING THEIR STOCK IN THE COMPANY RATHER THAN AFTER A SHAKEUP AS THE ITEM STATED AMERICAN BRANDS INC'S US TOBACCO BUSINESS AMERICAN TOBACCO CO RELIES ON DISCOUNT BRANDS FOR JUST UNDER HALF OF ALL SHIPMENTS BUT THE CHEAPER BRANDS MAKE UP LESS THAN ONETHIRD OF AMERICAN BRANDS' TOBACCO SHIPMENTS WORLDWIDE AN ARTICLE WEDNESDAY DIDN'T MAKE A DISTINCTION BETWEEN US AND WORLDWIDE SHIPMENTS HANSON PLC OF BRITAIN POSTED PRETAX PROFIT OF 507 MILLION EQUIVALENT TO 7818 MILLION FOR THE SIX MONTHS ENDED MARCH 31 IN AN ARTICLE WEDNESDAY THE FIGURE WAS INCORRECTLY CONVERTED AS 330 MILLION UNITED BUS OWNERS OF AMERICA WILL TAKE ABOUT 60 BUSES TO THE ALAMODOME IN SAN ANTONIO FOR A JANUARY TRADE SHOW BECAUSE OF INFORMATION PROVIDED BY STADIUM OFFICIALS AN ARTICLE MONDAY INCORRECTLY SAID THE AMERICAN BUS ASSOCIATION PLANNED TO TAKE 600 BUSES TO THE FACILITY DIY HOME WAREHOUSE INC CLEVELAND SAID ITS INITIAL PUBLIC OFFERING WAS PRICED AT 10 A SHARE IN AN ITEM WEDNESDAY THE COMPANY WAS INCORRECTLY IDENTIFIED AS DMI HOME WAREHOUSE INC CARTER BEESE JR A MEMBER OF THE SECURITIES AND EXCHANGE COMMISSION TESTIFIED WEDNESDAY THAT HE BELIEVES A REVIEW OF INCENTIVES OFFERED TO BROKERAGE FIRMS BY MARKETMAKERS SHOULD BE PART OF THE SEC'S BROADER MARKET 2000 STUDY DUE TO BE RELEASED THIS FALL INSTEAD OF AN EARLIER REVIEW FAVORED BY TWO OTHER SEC COMMISSIONERS IN AN ARTICLE YESTERDAY MR BEESE'S POSITION WASN'T CLEARLY STATED 9305210022 930521 AMEX TO PROHIBIT BUYING ON MARGIN IN ANDREA SHARES NEW YORK THE AMERICAN STOCK EXCHANGE SAID IT WON'T ALLOW INVESTORS TO BUY ANDREA ELECTRONICS CORP'S STOCK ON MARGIN IN AN EFFORT TO TEMPER THE SPECULATIVE FEVER THAT HAS DRIVEN THE COMPANY'S STOCK UP 59 IN FIVE DAYS MANY TRADERS HAD BEEN SNAPPING UP THE SHARES RECENTLY ON THE EXPECTATION THAT THE COMPANY WILL UNVEIL NEW NOISEREDUCTION TECHNOLOGY LAST YEAR THE COMPANY HAD A LOSS OF 690000 OR 136 A SHARE ON SALES OF 33 MILLION IT'S THE FIRST TIME IN SEVEN YEARS THAT THE EXCHANGE HAS PROHIBITED INVESTORS FROM BUYING A STOCK WITH MONEY BORROWED FROM A BROKERAGE FIRM THE LAST TIME THE AMEX TOOK SUCH AN ACTION WAS ON MAY 21 1986 WHEN IT BARRED MARGIN TRADING IN HOME SHOPPING NETWORK STOCK RUMORS FLEW YESTERDAY THAT THE EXCHANGE WAS LAUNCHING AN INVESTIGATION INTO TRADING IN ANDREA ELECTRONICS STOCK A SPOKESWOMAN AT THE AMEX DECLINED TO COMMENT AND JEFF GOSMAN CHIEF FINANCIAL OFFICER AT ANDREA ELECTRONICS IN LONG ISLAND CITY NY SAID HE WAS UNAWARE OF THE MARGIN BAN OR A PROBE INTO TRADING DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS SAID THE EXCHANGE'S ACTION WAS CLEARLY DIRECTED AT COOLING SPECULATION BUT THE MOVE DID STRIKE HIM AS UNUSUAL I'D BE SURPRISED IF YOU FOUND ANOTHER STOCK ON ANY EXCHANGE SUBJECT TO THE 100 MARGIN RULE RIGHT NOW HE SAID SINCE LAST THURSDAY WHEN THE COMPANY DECLARED A 400 STOCK DIVIDEND ITS STOCK HAS RISEN TO 93 FROM 5850 ITS 52WEEK LOW IS 6625 IT'S ONE OF THE HOTTEST STOCKS ON THE AMERICAN STOCK EXCHANGE THIS YEAR SAID MR SHULMAN ON WEDNESDAY AFTERNOON THE AMEX HALTED TRADING IN THE STOCK BECAUSE OF AN ORDER IMBALANCE THE HALT CONTINUED YESTERDAY PENDING NEWS ON THE COMPANY AFTER THE CLOSE OF TRADING YESTERDAY ANDREA ANNOUNCED THAT ITS CURRENT COMPANY OFFICERS WILL RETAIN THEIR POSITIONS THE COMPANY HELD ITS ANNUAL MEETING YESTERDAY SOME TRADERS SUGGESTED THAT THE COMPANY'S STOCK WAS THE TARGET OF A SHORT SQUEEZE BECAUSE THERE ARE SO FEW SHARES OUSTANDING THE COMPANY HAS 508272 SHARES OVER HALF OF WHICH ARE OWNED BY THE ANDREA FAMILY A SHORT SQUEEZE OCCURS WHEN INVESTORS WHO HAVE BORROWED SHARES IN A BET THAT THE PRICE OF A STOCK WILL FALL INSTEAD SEE THE PRICE RISING AND RUSH TO BUY SHARES TO COVER THEIR BET 9305210021 930521 BUSINESS BRIEF FOODMAKER INC ASSOCIATES UNVEIL AN OFFER TO BUY AILING RESTAURANT ENTERPRISES RESTAURANT OPERATOR FOODMAKER INC AND ASSOCIATES UNVEILED A COMPLICATED AND APPARENTLY UNSOLICITED OFFER TO ACQUIRE FINANCIALLY TROUBLED RESTAURANT ENTERPRISES GROUP INC THAT INCLUDES MORE THAN 235 MILLION IN CASH AND SECURITIES PART OF THE PLAN CALLS FOR SAN DIEGOBASED FOODMAKER TO TRANSFER ITS CHICHI'S CHAIN OF EATERIES TO THE NEW COMPANY THAT WOULD BE ACQUIRING RESTAURANT ENTERPRISES FOODMAKER'S ASSOCIATES IN THE OFFER ARE INVESTOR LEON BLACK'S APOLLO ADVISORS LP AND A PARTNERSHIP HEADED BY INVESTOR LEONARD GREEN THE PROPOSAL HASN'T BEEN APPROVED BY EITHER RESTAURANT ENTERPRISES OR WR GRACE & CO FORMER OWNER OF MUCH OF THE TARGET COMPANY'S OPERATIONS AND NOW A MAJOR CREDITOR RESTAURANT ENTERPRISES YESTERDAY DIDN'T RETURN TELEPHONE CALLS A SPOKESMAN FOR WR GRACE DECLINED TO COMMENT ON THE OFFER FOODMAKER AND ITS PARTNERS SAID THE PROPOSAL HAS BEEN TENTATIVELY ACCEPTED BY AN UNOFFICIAL COMMITTEE OF RESTAURANT ENTERPRISES' BONDHOLDERS LITTLEKNOWN AND CLOSELY HELD RESTAURANT ENTERPRISES OPERATES MORE THAN 550 RESTAURANTS IN 24 STATES INCLUDING THE CARROWS COCO'S ALLIE'S AND EL TORITO CHAINS LAST YEAR THE COMPANY HAD A NET LOSS OF 2149 MILLION OR 78638 A SHARE ON REVENUE OF 9301 MILLION THE PROPOSED PLAN CALLS FOR FOODMAKER TO TRANSFER ITS CHICHI'S CHAIN OF MORE THAN 230 RESTAURANTS TO THE NEW COMPANY THAT ALSO WOULD BE ACQUIRING RESTAURANT ENTERPRISES FOODMAKER WOULD GET A 33 STAKE IN THE NEW COMPANY AND 270 MILLION IN CASH IN TURN THAT CASH WOULD BE RAISED THROUGH A NOTES OFFERING BY THE NEW COMPANY APOLLO ADVISORS LP AND LEONARD GREEN & PARTNERS LP WOULD INVEST 108 MILLION AND WOULD HOLD A 67 STAKE IN THE NEW COMPANY THE PLAN WOULD INVOLVE A SOCALLED PREPACKAGED CHAPTER 11 BANKRUPTCY FILING BONDHOLDERS WOULD RECEIVE ABOUT 235 MILLION IN CASH AND SECURITIES STILL TO BE DEALT WITH APPARENTLY ARE DEBT AND PREFERRED STOCK HELD BY MARRIOTT CORP AND LETTERS OF CREDIT OWED TO WR GRACE APOLLO ADVISORS HEADED BY INVESTOR LEON BLACK IS A NEW YORKBASED INVESTMENT FUND MR GREEN IS A DIRECTOR OF FOODMAKER AND INDIRECTLY HAS A SUBSTANTIAL STAKE IN THE GENERAL PARTNER OF TWO PARTNERSHIPS THAT COMBINED HOLD AN ABOUT 46 STAKE IN FOODMAKER FOODMAKER'S JACK IN THE BOX RESTAURANTS EARLIER THIS YEAR SERVED TAINTED MEAT ALLEGEDLY RESPONSIBLE FOR AN OUTBREAK OF AT LEAST 450 CASES OF SEVERE FOOD POISONING AND AT LEAST TWO DEATHS 9305210020 930521 WHAT'S NEWS WORLDWIDE THE US MAY SUPPORT A EUROPEAN PLAN TO CONTAIN THE WAR IN BOSNIA DESPITE SOME MISGIVINGS THE ADMINISTRATION APPEARS TO BE MOVING TOWARD CONDITIONAL ENDORSEMENT OF A PROPOSAL TO USE MULTINATIONAL BUT NOT US PEACEKEEPERS TO PROTECT MUSLIM SAFE HAVENS WHILE TIGHTENING ECONOMIC AND DIPLOMATIC PRESSURES ON BOSNIAN SERBS TO AGREE TO A PEACE ACCORD THE APPROACH COULD END UP FREEZING SERBIAN GAINS IN PLACE IN A MEETING WITH RUSSIAN FOREIGN MINISTER KOZYREV SECRETARY OF STATE CHRISTOPHER OFFERED A LIST OF COMPREHENSIVE ACTIONS THAT THE US WOULD BE PREPARED TO TAKE MUSLIMS ACCUSED SERBS OF LAUNCHING ATTACKS IN SARAJEVO AND OTHER PARTS OF BOSNIA A DAY AFTER THE BOSNIAN SERBS SAID THEY HAD HALTED MILITARY OPERATIONS A JOBS BILL WAS ENDORSED BY THE HOUSE APPROPRIATIONS COMMITTEE LEADERSHIP THE ESTIMATED 1 BILLION PACKAGE INCLUDES 920 MILLION FOR SUMMER JOB AND PUBLICWORKS PROGRAMS BACKED BY THE ADMINISTRATION AND AID FOR COMMUNITY POLICE SERVICES FUNDING WOULD RELY ON A SERIES OF CUTS FROM EXISTING APPROPRIATIONS UKRAINE'S PRIME MINISTER RESIGNED AFTER A DEBATE ON WHETHER TO EXTEND HIS GOVERNMENT'S SPECIAL POWERS KUCHMA WAS DEALT A BLOW WHEN PRESIDENT KRAVCHUK AND THE PARLIAMENT CHAIRMAN CAME OUT AGAINST THE EXTENSION KRAVCHUK PROPOSED CHANGING THE CONSTITUTION TO ALLOW THE PRESIDENT TO HEAD THE GOVERNMENT BRITAIN'S HOUSE OF COMMONS APPROVED THE EUROPEAN UNITY TREATY GIVING PRIME MINISTER MAJOR A SOLID MAJORITY DESPITE OPPOSITION FROM REBELS IN HIS PARTY MAJOR ASSURED PARLIAMENT BEFORE THE VOTE THAT THE TREATY DOESN'T FORCE BRITAIN TO REJOIN THE EUROPEAN EXCHANGE RATE MECHANISM VENEZUELAN PRESIDENT PEREZ MUST STAND TRIAL ON CHARGES OF MISUSING SECRET GOVERNMENT FUNDS THE COUNTRY'S SUPREME COURT RULED PEREZ REAFFIRMED THAT HE WOULD STEP ASIDE IF THE SENATE RATIFIES THE RULING VENEZUELANS BRACED FOR VIOLENCE AND POLICE AND TROOPS MOVED TO DISPERSE ANGRY MOBS IN CARACAS CLINTON SIGNED LEGISLATION THAT MAKES VOTER REGISTRATION EASIER THE MOTOR VOTER LAW REQUIRES STATES TO ALLOW PEOPLE TO REGISTER BY MAIL WHEN APPLYING FOR DRIVER'S LICENSES OR GOVERNMENT BENEFITS OR WHEN ENLISTING IN THE ARMED SERVICES THE SENATE RULES COMMITTEE DISMISSED A COMPLAINT SEEKING TO OUST SEN PACKWOOD ON GROUNDS THAT HE COVERED UP SEXUAL HARASSMENT CHARGES THE PANEL VOTED 160 TO REJECT A PETITION BY OREGON VOTERS WHO ALLEGED THAT PACKWOOD COMMITTED FRAUD BY LYING DURING HIS CAMPAIGN AN ETHICS PANEL IS INVESTIGATING THE HARASSMENT CHARGES THE WHITE HOUSE FACED QUESTIONS OVER WHETHER THE THE FIRING OF ITS TRAVEL STAFF WAS A POLITICAL MOVE WHILE REVIEWS OF THE OFFICE'S ACTIVITIES CONTINUED THE WHITE HOUSE ACKNOWLEDGED THAT A FRIEND OF CLINTON'S HAD COMPLAINED THAT SOME CHARTER AIRLINE BUSINESSES WEREN'T ALLOWED TO BID ON WHITE HOUSE TRIPS UN PEACEKEEPERS AUTHORIZED ARMED CAMBODIAN FACTIONS TO LAUNCH ATTACKS TO PROTECT POLLING STATIONS IN THE FACE OF KHMER ROUGE THREATS TO DISRUPT NATIONAL ELECTIONS THAT BEGIN THIS WEEKEND THE AUTHORIZATION FROM THE UN MILITARY CHIEF CAME AFTER KHMER ROUGE REBELS ATTACKED A STRATEGIC TOWN IN CENTRAL CAMBODIA LATE WEDNESDAY CALIFORNIA'S SUPREME COURT UPHELD A CONTRACT BETWEEN A WOMAN AND THE COUPLE WHO PAID HER TO CARRY THEIR TESTTUBE BABY THE RULING CAME IN A CASE WHERE THERE WAS NO GENETIC LINK BETWEEN THE SURROGATE AND THE INFANT SHE BORE AND WANTED TO KEEP AT LEAST 18 STATES PROHIBIT OR RESTRICT COMMERCIAL SURROGATE BIRTHS A JUDGE IN MICHIGAN STRUCK DOWN A STATE LAW PROHIBITING DOCTORS FROM HELPING TERMINALLY ILL PATIENTS COMMIT SUICIDE THE LAW WAS AIMED AT RETIRED PHYSICIAN JACK KEVORKIAN WHO HAS AIDED IN 16 SUICIDES SINCE 1990 THE JUDGE RULED THE LAW UNCONSTITUTIONAL BECAUSE IT WAS PASSED WITHOUT A PUBLIC HEARING AND HAD MORE THAN ONE OBJECTIVE NO SURVIVORS WERE FOUND IN THE WRECKAGE OF A COLOMBIAN JETLINER THAT CRASHED INTO A REMOTE ANDES MOUNTAINSIDE ABOUT 50 MILES FROM MEDELLIN ON WEDNESDAY THE BOEING 727100 OPERATED BY A CHARTER UNIT OF AVIANCA WAS CARRYING 132 PEOPLE INCLUDING SEVEN AMERICANS ON A FLIGHT FROM PANAMA TO BOGOTA WITH A STOP IN MEDELLIN 9305210019 930521 FINANCING BUSINESS TEJAS GAS CORP TEJAS GAS CORP HOUSTON SAID PENN CENTRAL CORP CINCINNATI INTENDS TO SELL ITS HOLDINGS OF ABOUT 19 MILLION TEJAS COMMON SHARES IN A SECONDARY OFFERING THE SHARES WHICH CONSTITUTE 193 OF TOTAL TEJAS SHARES OUTSTANDING WERE ACQUIRED BY PENN PRIMARILY AN INSURANCE COMPANY IN CONJUNCTION WITH ITS SALE OF GULF ENERGY DEVELOPMENT CORP A NATURALGAS PIPELINE COMPANY TO TEJAS IN 1988 THE SALE OF THE TEJAS STOCK IS PART OF SEVERAL STRATEGIC DIVESTITURES OF NONINSURANCE BUSINESSES THAT PENN CENTRAL HAS BEEN PURSUING TEJAS ALSO SAID IT IS CONSIDERING COMBINING AN OFFERING OF COMMON SHARES OR CONVERTIBLE PREFERRED STOCK WITH PENN'S SECONDARY OFFERING TO FINANCE ITS RECENTLY ANNOUNCED PURCHASE OF EXXON CORP'S TEXAS AND LOUISIANA INTRASTATE NATURALGAS PIPELINES THE NATURALGAS PIPELINE COMPANY SAID IT IS CONSIDERING OTHER ALTERNATIVES TO REDUCE DEBT INCLUDING SALE OF NONSTRATEGIC ASSETS 9305210018 930521 POLITICS & POLICY INVESTMENT FUND FOR HILLARY CLINTON SOLD SHORT SEVERAL HEALTHCARE STOCKS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL THE INVESTMENT FUND THAT MANAGES A PORTION OF HILLARY RODHAM CLINTON'S PORTFOLIO SOLD SHORT SEVERAL HEALTHCARE STOCKS SINCE SHE BECAME FIRST LADY ACCORDING TO THE MANAGER OF THE FUND THE INVESTMENTS WEREN'T BASED ON ANY INFORMATION RECEIVED FROM MRS CLINTON SAID BILL SMITH PRESIDENT OF SMITH CAPITAL MANAGEMENT THE FUND'S MANAGER INDEED HE ADDED VALUE PARTNERS THE INVESTMENT PARTNERSHIP THAT TOOK THE SHORT POSITIONS SUFFERED MORE THIS YEAR FROM THE HEALTHCARE STOCKS IT HELD FOR GAIN THAN IT PROFITED FROM THE SHORT SALES MRS CLINTON HEADS THE PRESIDENTIAL TASK FORCE ON HEALTHCARE REFORM MANY HEALTHCARE STOCKS HAVE FALLEN IN VALUE THIS YEAR BECAUSE OF THE UNCERTAINTY ABOUT WHAT THE TASKFORCE FINALLY WILL RECOMMEND ONE OF THE STOCKS SHORTED THIS YEAR WAS SYNERGEN INC A BIOTECHNOLOGY COMPANY WHOSE SHARES PLUNGED 68 IN VALUE AFTER THE COMPANY ANNOUNCED POOR RESULTS FOR A MAJOR TRIAL OF ITS KEY DRUG ACCORDING TO A PERSON AT A BROKERAGE FIRM THAT DEALS WITH VALUE PARTNERS MR SMITH CONFIRMED HIS FUND SHORTED SYNERGEN EARLIER THIS YEAR AND SAID HE BOUGHT BACK THE SHORTED SYNERGEN SHARES AT THE LOWER PRICE FOR A GAIN HE WOULDN'T DISCLOSE HE SAID HE HASN'T HAD ANY CONTACT WITH MRS CLINTON OR ANY MEMBER OF THE CLINTON ADMINISTRATION THIS YEAR OUR RESEARCH MADE US BELIEVE THE STOCK PRICE OF SYNERGEN REFLECTED A MORE OPTIMISTIC OUTLOOK THAN WARRANTED HE SAID VALUE PARTNERS IS A HEDGE FUND AND MRS CLINTON HAS BEEN ONE OF ITS LIMITED PARTNERS SINCE 1986 HE SAID HEDGE FUNDS ARE AMONG THE MOST AGGRESSIVE INVESTMENT POOLS BECAUSE THEY CAN BUY STOCKS WITH BORROWED MONEY AND CAN SELL STOCKS SHORT THAT IS BORROW SHARES AND SELL THEM AT CURRENT PRICES IN ANTICIPATION OF REPLACING THEM AT LOWER PRICES INFORMATION ABOUT THE INVESTMENTS OF PRESIDENT AND MRS CLINTON WAS DISCLOSED IN FEDERAL FORMS THIS WEEK AND THE WHITE HOUSE SAID A BLIND TRUST CURRENTLY IS BEING ESTABLISHED AS OF DEC 31 1992 THE INVESTMENT FUND MANAGING BETWEEN 50000100000 OF MRS CLINTON'S MONEY HAD ABOUT 12 MILLION INVESTED IN 10 HEALTHCARE STOCKS OR ABOUT 13 OF THE PORTFOLIO THE DISCLOSURE SAID A SPOKESMAN FOR THE FEDERAL OFFICE OF GOVERNMENT ETHICS TOLD THE ASSOCIATED PRESS WEDNESDAY THAT GIVEN THE KEY ROLE MRS CLINTON HAS AS HEAD OF THE HEALTHCARE REFORM TASK FORCE SHE SHOULD CONSIDER DIVESTING HERSELF OF THE HEALTHCARE INVESTMENTS MR SMITH SAID HE WASN'T SURE HOW THE ESTABLISHMENT OF A BLIND TRUST WOULD AFFECT THE STATUS OF MRS CLINTON'S INVESTMENT IN HIS FUND OR HOW THE REPORTING OF INVESTMENTS AND INVESTMENT RESULTS WOULD BE HANDLED A WHITE HOUSE REPRESENTATIVE SAID MRS CLINTON IS IN THE PROCESS OF PLACING HER INVESTMENTS INTO A BLIND TRUST TO INSURE THAT THERE NOT BE THE SLIGHTEST ISSUE RAISED ON THEIR FINANCIAL DEALINGS SUCH AN ARRANGEMENT COMMON FOR HIGH GOVERNMENT OFFICIALS HAS BEEN UNDER CONSIDERATION FOR SOME TIME THE REPRESENTATIVE SAID WITH REGARD TO MR SMITH'S FUND THE REPRESENTATIVE ADDED THAT MRS CLINTON HAS NO INPUT COMMUNICATION REVIEW OVERSIGHT OR CONTROL OVER THE INVESTMENTS THAT THE FUND MAKES HOWEVER THE REPRESENTATIVE COULDN'T SAY FOR CERTAIN THAT MRS CLINTON WAS UNAWARE THAT HER MONEY WAS INVESTED IN MEDICALCOMPANY STOCKS TWO OF THE STOCKS LISTED IN THE FILING BIOPLASTY INC A MAKER OF PLASTICSURGERY DEVICES AND CRYOMEDICAL SCIENCE INC WHICH FREEZES HUMAN TISSUE FOR LATER USE WERE SHORT POSITIONS MR SMITH SAID BOTH ARE STILL HELD HE SAID THE BIOPLASTY SHORT POSITION WHICH WAS ESTABLISHED AT 325 A SHARE 18 MONTHS AGO AND NOW TRADES AT LESS THAN 1 REMAINS OPEN BESIDES THOSE TWO STOCKS AND SYNERGEN VALUE PARTNERS HAD SHORT POSITIONS IN FOUR OTHER HEALTHCARE STOCKS THIS YEAR ACCORDING TO THE PERSON AT THE BROKERAGE FIRM THEY ARE COLLAGEN A BIOTECHNOLOY COMPANY HOSPITAL PROFESSIONALS WHICH HELPS HOSPITALS FIND STAFF UNITED HEALTHCARE CORP AND US HEALTHCARE HEALTH MAINTENANCE ORGANIZATIONS MR SMITH CONFIRMED THAT COLLAGEN WAS A NEW SHORT POSITION THIS YEAR AND SAID HOSPITAL PROFESSIONALS WAS A CARRYOVER FROM LAST YEAR THE TWO HMOS HAD BEEN LONG POSITIONS HELD FOR GAIN AND BECAME SHORT POSITIONS ONLY BRIEFLY THIS YEAR HE ADDED OTHER HEALTHCARE COMPANIES HELD FOR POSSIBLE GAIN AT THE END OF LAST YEAR INCLUDED COLUMBIA HOSPITAL CORP AND PYXIS INC WHICH DISPENSES PHARMACEUTICALS TO NURSES THROUGH A MACHINE THAT HELPS HOSPITALS MAINTAIN BETTER CONTROL WHILE THE FUND MADE MONEY ON ITS SHORT POSITIONS THIS YEAR OVERALL THE HEALTHCARE PORTFOLIO IN THE FUND HAS DECLINED IN VALUE HE SAID WE'RE JUST AS CONFUSED AS ANYBODY ELSE AT WHAT MIGHT COME OUT OF HEALTHCARE REFORM MR SMITH ADDED HIS LITTLE ROCK ARK FIRM MANAGES ABOUT 80 MILLION IN STOCK AND FIXEDINCOME INVESTMENTS FOR ABOUT 150 CLIENTS I'VE HELPED HILLARY AND BILL WITH THEIR INVESTMENTS FOR 14 YEARS SAID MR SMITH WHO WAS SPEAKING ON A MOBILE TELEPHONE FROM A RICE FARM HE OWNS MRS CLINTON HAS NEVER DISCUSSED WITH MR SMITH ANY INFORMATION SHE LEARNED AS A DIRECTOR OF SEVERAL ARKANSAS COMPANIES INCLUDING WALMART STORES INC HE SAID THE LAST TIME MRS CLINTON WAS SENT A LIST OF THE STOCKS IN THE VALUE PARTNERS' PORTFOLIO WAS A YEAR AGO MR SMITH ADDED THE VALUE PARTNERS FUND WHICH INVESTS IN SMALL TO MIDSIZE COMPANIES ISN'T AS AGGRESSIVE AS MANY HEDGE FUNDS MR SMITH ASSERTS VALUE PARTNERS IS SHORT IN ABOUT 15 OF ITS 70 STOCKS HE SAID THE SHORT POSITIONS IN HEALTH CARE AT THE END OF 1992 WERE VALUED AT AN AVERAGE OF LESS THAN 100000 EACH HE SAID DESPITE THIS YEAR'S PERFORMANCE WHICH MR SMITH DECLINED TO SPECIFY MRS CLINTON HAS DONE WELL THROUGH VALUE PARTNERS IT HAS HAD AN AVERAGE ANNUAL RETURN OF ABOUT 14 SINCE INCEPTION IN 1984 A BETTER PERFORMANCE THAN THE NASDAQ COMPOSITE INDEX MR SMITH SAYS JEFFREY H BIRNBAUM IN WASHINGTON DC ALSO CONTRIBUTED TO THIS ARTICLE 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 9305210017 930521 WHAT'S NEWS BUSINESS AND FINANCE CLINTON'S ECONOMIC PLAN FACES A NEW THREAT AFTER FOUR MODERATE SENATORS PROPOSED A BIPARTISAN ALTERNATIVE THAT SCRAPS CLINTON'S ENERGY TAX THE ALTERNATIVE WAS SPEARHEADED BY DEMOCRAT BOREN WHO ALONE COULD DOOM THE PACKAGE BECAUSE OF HIS SEAT ON THE FINANCE COMMITTEE BOREN SAID HE WILL OPPOSE THE PRESIDENT'S ENERGY TAX IN COMMITTEE OR ON THE FLOOR A TREASURY OFFICIAL ACKNOWLEDGED THAT THE GOVERNMENT'S PLAN TO RELY MORE ON SHORTTERM BORROWING WON'T SAVE THE 161 BILLION OVER FIVE YEARS THAT THE PRESIDENT'S BUDGET PROJECTED STATES ARE LIKELY TO PICK UP PART OF THE HEALTHCARE TAB IF THEY EXCEED A FEDERALLY SET BUDGET UNDER THE ADMINISTRATION'S PLAN CLINTON OFFICIALS ARE MOVING TOWARD MAKING STATES RESPONSIBLE FOR ENFORCING SUCH A BUDGET STOCKS JUMPED AGAIN LIFTING THE DOW JONES INDUSTRIAL AVERAGE 2325 POINTS TO A RECORD 352328 BOND PRICES FELL THE PRICE OF THE TREASURY'S 30YEAR ISSUE DROPPED MORE THAN 1/4 OF A POINT PUSHING ITS YIELD UP TO 699 ROLLWAGEN WITHDREW AS THE NOMINEE FOR THE COMMERCE DEPARTMENT'S NO 2 POST THE FORMER CRAY RESEARCH CHIEF'S MOVE IS A BLOW TO CLINTON'S GOAL OF ADDING TECHNOLOGICAL STRENGTH TO THE AGENCY AND COMES AMID AN SEC PROBE OF INSIDER TRADING AT A CRAY SPINOFF NORTHWEST AIRLINES' PARENT ASKED ITS LENDERS TO DEFER MUCH OF ITS 214 BILLION BANK DEBT IN AN APPARENT CHANGE OF COURSE WINGS HOLDINGS TIED THE REQUEST TO A CONCESSION PACT IT IS SEEKING WITH THE AIRLINE'S UNIONS CHRYSLER PROBABLY WON'T BOOST ITS DIVIDEND UNTIL IT GETS AN INVESTMENTGRADE CREDIT RATING BUT THAT COULD OCCUR WITHIN THE NEXT NINE MONTHS THE AUTO MAKER'S CHAIRMAN SAID LOTUS DEVELOPMENT IS NEGOTIATING TO BUY APPROACH SOFTWARE A SMALL FASTGROWING DATABASE COMPANY SAY PEOPLE FAMILIAR WITH THE TALKS FORMER DREXEL CHIEF FREDERICK JOSEPH REACHED A SETTLEMENT WITH THE SEC THAT APPEARED TO SIGNAL A NEW POLICY TOWARD TOP EXECUTIVES AND HOW THEY OVERSEE EMPLOYEES' ACTIVITIES WALMART APPEARS TO BE PHASING OUT ITS ALWAYS THE LOW PRICE' SLOGAN TO ALWAYS LOW PRICES' REFLECTING MORE COMPETITION FROM OTHER DISCOUNTERS SHORT INTEREST ON THE BIG BOARD ROSE 28 IN THE MONTH TO MIDMAY WHILE THE TOTAL ON THE AMERICAN STOCK EXCHANGE CLIMBED 6 CHRYSLER HAD THE HIGHEST SHORT INTEREST THE INVESTMENT FUND THAT MANAGES PART OF HILLARY RODHAM CLINTON'S PORTFOLIO SAID IT SOLD SHORT HEALTHCARE STOCKS SINCE SHE BECAME FIRST LADY SONY AND MATSUSHITA ELECTRIC HAD SHARP EARNINGS DROPS FOR THE YEAR REFLECTING THE INDUSTRY'S SLUMP COMPUTER ASSOCIATES INTERNATIONAL'S STOCK ROSE 125 OR 43 TO 30 AFTER THE SOFTWARE COMPANY ANNOUNCED A 40 DIVIDEND INCREASE THE COMPANY'S EARNINGS SOARED 51 TO 2455 MILLION FOR ITS LATEST YEAR BONDS LEHMAN BROTHERS TREASURY INDEX 505021 OFF 722 COMMODITIES OIL 1954 A BARREL UP 39 CENTS DOW JONES FUTURES INDEX 12342 UP 044 SPOT INDEX 12055 OFF 012 DOLLAR 11065 YEN UNCHANGED 16172 MARKS OFF 00058 9305210016 930521 BNP NEW CHAIRMAN PEBEREAU TO LEAD BIG FRENCH BANK TOWARD PRIVATIZATION BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL PARIS MICHEL PEBEREAU WHO TAKES OVER MONDAY AS CHAIRMAN OF BANQUE NATIONALE DE PARIS IS A PIANOPLAYING SCIENCEFICTION FAN WHO IS EXPECTED TO BRING NEW IDEAS TO ONE OF THE GIANTS OF FRENCH FINANCE AS IT GEARS UP FOR PRIVATIZATION FORMERLY CHAIRMAN OF CREDIT COMMERCIAL DE FRANCE HE WAS APPOINTED TO HEAD BNP AT THE WEEKLY MEETING OF THE FRENCH CABINET UNDER THE CHAIRMANSHIP OF PRESIDENT FRANCOIS MITTERRAND WEDNESDAY A 51YEAROLD FORMER CIVIL SERVANT KNOWN FOR HIS INNOVATIVE THINKING AND PRAGMATIC APPROACH TO BUSINESS MR PEBEREAU SUCCEEDS RENE THOMAS MR THOMAS WHO HAD HEART SURGERY THREE YEARS AGO IS RETIRING AT CREDIT COMMERCIAL MR PEBEREAU HAS BEEN SUCCEEDED BY CHARLES DE CROISSET WHO IS 49 AND WHO WAS UNTIL NOW ONE OF TWO GENERAL MANAGERS AT THE BANK IN CHARGE OF COMMERCIAL BANKING HIS APPOINTMENT WAS APPROVED BY CREDIT COMMERCIAL'S BOARD TUESDAY MR THOMAS WOULD NORMALLY HAVE RETIRED AS BNP CHAIRMAN ON HIS 65TH BIRTHDAY IN JANUARY HOWEVER HE ASKED TO STEP DOWN AHEAD OF SCHEDULE TO LEAVE HIS SUCCESSOR FREE TO LEAD THE BANK THROUGH PRIVATIZATION AND PROPOSED MR PEBEREAU AS THE MOST APPROPRIATE PERSON TO TAKE HIS PLACE NO TIMETABLE HAS BEEN SET FOR THE PRIVATIZATION OF BNP FRANCE'S SECONDLARGEST COMMERCIAL BANK OR FOR ANY OTHER OF A SLEW OF STATEOWNED BANKS AND COMPANIES THAT FRANCE'S NEW CONSERVATIVE GOVERNMENT AIMS TO TRANSFER TO THE PRIVATE SECTOR HOWEVER BNP IS ONE OF THE NAMES AT THE TOP OF THE GOVERNMENT'S LIST AND THE FIRST PRIVATIZATION SALES ARE EXPECTED LATER THIS YEAR PREPARING BNP FOR THE PROSPECT IS A TASK THAT MR PEBEREAU SHOULD FIND FAMILIAR APPOINTED ONE OF TWO GENERAL MANAGERS OF CREDIT COMMERCIAL BY PRESIDENT MITTERRAND'S FIRST SOCIALIST GOVERNMENT FOLLOWING ITS NATIONALIZATION IN 1982 HE LED THE BANK THROUGH PRIVATIZATION UNDER A CONSERVATIVE GOVERNMENT IN 1987 AS ITS CHAIRMAN DURING THE FOLLOWING SIX YEARS HE ACQUIRED A REPUTATION AS A CAREFUL AND INNOVATIVE MANAGER EARLIER THIS YEAR CREDIT COMMERCIAL REPORTED GROUP NET PROFIT OF 9781 MILLION FRENCH FRANCS 1785 MILLION FOR 1992 UP 67 FROM 1991 AND ITS SIXTHSUCCESSIVE ANNUAL INCREASE AT A TIME WHEN OTHER BANKS WERE REPORTING PLUNGING EARNINGS OR RED INK CREDIT COMMERCIAL UNDER MR PEBEREAU'S LEADERSHIP ONE OF THE FIRST FRENCH BANKS TO SECURITIZE ITS DEVELOPING COUNTRY DEBT PORTFOLIO AND ONE OF THE FIRST TO USE ACCOUNTING PROVISIONS TO BOOST ITS RESERVES BY REVALUING ITS PROPERTY PORTFOLIO IN LINE WITH MARKET RATES IN 1989 AT A TIME WHEN CREDIT COMMERCIAL WAS WIDELY REGARDED AS A LIKELY CANDIDATE FOR TAKEOVER BY A BIGGER RIVAL MR PEBEREAU TOOK ADVANTAGE OF STOCK MARKET APPETITE FOR ITS SHARES TO OFFER NEW ORDINARY SHARES IN EXCHANGE FOR PREFERENCE SHARES THAT WERE MORE COSTLY TO THE BANK IN TERMS OF DIVIDENDS FROM HIS PANELLED OFFICE IN WHAT WAS ONCE A HOTEL ON THE FASHIONABLE CHAMPS ELYSEES MATA HARI THE FAMOUS WORLD WAR I DUTCH WOMAN WHO SPIED FOR THE GERMANS WAS ARRESTED THERE IN 1917 HE CHANGED CREDIT COMMERCIAL TO FOCUS ON FOUR MAIN STRATEGIC AREAS RETAIL BANKING INVESTMENT BANKING PRIVATE BANKING AND ASSET MANAGEMENT IN A BID TO STRENGTHEN CREDIT COMMERCIAL'S INTERNATIONAL INVESTMENT BANKING CAPABILITIES ONE OF MR PEBEREAU'S MOST RECENT MOVES WAS THE DECISION JOINTLY WITH BERLINER HANDELS & FRANKFURTER BANK TO BUY ROYAL BANK OF SCOTLAND'S CHARTERHOUSE INVESTMENT BANKING SUBSIDIARY AT BNP'S ART DECO HEADQUARTERS NEAR THE PARIS OPERA MEANWHILE MR PEBEREAU WILL BE ABLE TO COUNT ON TWO ABLE LIEUTENANTS GENERAL MANAGERS JACQUES HENRI WAHL WHO DEALS WITH INTERNATIONAL OPERATIONS AND DANIEL LEBEGUE A FORMER DIRECTOR OF THE FRENCH TREASURY WHO FOCUSES ON BNP'S HOME MARKET AND WHO WAS AT ONE POINT SPOKEN OF AS A POSSIBLE SUCCESSOR TO MR THOMAS ONE OF THE FIRST DOSSIERS MR PEBEREAU WILL HAVE TO DEAL WITH CONCERNS BNP'S COOPERATION AGREEMENT WITH GERMANY'S DRESDNER BANK AG SUBJECT TO APPROVAL BY EUROPEAN COMMUNITY COMPETITION AUTHORITIES THE TWO BANKS PLAN TO POOL THEIR OPERATIONS OUTSIDE GERMANY AND FRANCE THEY ALSO PLAN TO TAKE CROSS SHAREHOLDINGS OF 10 IN EACH OTHER'S CAPITAL BUT MR PEBEREAU WILL ALSO HAVE TO TACKLE THE CHALLENGES OF AN INCREASINGLY DIFFICULT HOME BANKING ENVIRONMENT BAD DEBTS ARE RISING AS FRANCE'S ECONOMY SLOWS AND BANKS' MARGINS ARE BEING SQUEEZED AS GROWING NUMBERS OF CUSTOMERS SEEK TO EARN INTEREST ON THEIR DEPOSITS IN 1992 BNP SAID NET EARNINGS FELL 26 TO 217 BILLION FRANCS REFLECTING BOTH THESE FACTORS BANKERS SAY THE OUTLOOK IS FOR LITTLE OR NO IMPROVEMENT IN THE FRENCH BUSINESS ENVIRONMENT IN 1993 9305210015 930521 WORLD MARKETS STOCKS WEAKEN IN TOKYO AND SLIP IN LONDON AS WORRIES ABOUT NATIONS' ECONOMIES PERSIST A WALL STREET JOURNAL NEWS ROUNDUP WORRIES ABOUT THE JAPANESE ECONOMY'S PROLONGED SLOWDOWN CONTINUED TO WEIGH ON TOKYO MARKET SENTIMENT CAUSING STOCK PRICES TO SOFTEN THURSDAY IN THIN TRADING DESPITE A LATE BURST OF BUYING LONDON SHARES SLIPPED ON CONCERNS ABOUT CORPORATE EARNINGS PROSPECTS INTEREST RATES AND AN INDICATION OF A POSSIBLE UK ECONOMIC RECOVERY HOLIDAY OBSERVANCES YESTERDAY CLOSED ABOUT A DOZEN MAJOR EXCHANGES PRIMARILY IN EUROPE INCLUDING THOSE IN FRANKFURT AND PARIS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10567 UP 038 REFLECTING INCREASES IN THE AMERICAS AND IN EUROPE AND A DROP IN THE ASIA/PACIFIC REGION CASINO STOCKS WERE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15643 UP 436 OR 29 WITH MIRAGE RESORTS OF THE US POSTING AN 82 GAIN IN ITS LOCAL CURRENCY COMMUNICATIONS WITH AT&T STOCKS TRAILED AT 14192 DOWN 163 OR 11 WITH NIPPON TELEGRAPH & TELEPHONE OF JAPAN SLIDING 23 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAINED 15140 POINTS WEDNESDAY FELL 5039 TO 2033039 ON FRIDAY THE NIKKEI ROSE 8031 POINTS TO CLOSE THE MORNING SESSION AT 2041070 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES DOWN FROM 3977 MILLION SHARES A DAY EARLIER DECLINING ISSUES OUTNUMBERED ADVANCING ISSUES 611396 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH ROSE 868 POINTS WEDNESDAY SLIPPED 363 TO 159433 FOLLOWING WALL STREET'S SURGE INTO RECORD TERRITORY WEDNESDAY TOKYO STOCKS STARTED TO FOLLOW SUIT AT THE OPENING BUT TRADING SOON TURNED CHOPPY AND BEARISH AMID A LACK OF BUYING INCENTIVES AND FUTURESLINKED INDEX SELLING AMID THE THIN TURNOVER BUFFETED THE MARKET AND HELPED PUSH THE NIKKEI AS LOW AS 2012278 IN THE AFTERNOON SESSION INVESTORS WERE DISCOURAGED PARTLY BECAUSE JAPAN'S LONGTERM CREDIT BANKS THIS MONTH MAY RAISE THE LONGTERM PRIME LENDING RATE NOW 51 AN INCREASE COULD FORCE A RATE BOOST ON LOANS FOR HOUSING A SECTOR THAT HAS HAD A WOBBLY RECOVERY BUT NONETHELESS BEEN A BRIGHT SPOT IN THE WEAK ECONOMY INVESTORS WORRIED THAT HIGHER HOUSINGLOAN RATES COULD CHOKE OFF INVESTMENT AND RETARD ECONOMIC RECOVERY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED DOWN 29 POINTS TO 28168 THE FT 30STOCK INDEX FELL 73 POINTS TO 21869 VOLUME WAS 7009 MILLION SHARES COMPARED WITH 6475 MILLION SHARES A DAY EARLIER THE RETREAT WAS PARTLY ATTRIBUTED TO WORRIES ABOUT NEARTERM GROWTH PROSPECTS FOR BREWERS AND RETAILERS MANY INVESTORS PAUSED WHILE CASTING ABOUT FOR MORE GUIDANCE FROM ECONOMIC INDICATORS ABOUT THE BRITISH ECONOMY'S REBOUND DATA YESTERDAY SHOWED THAT UNEMPLOYMENT IN APRIL FELL FOR THE THIRD CONSECUTIVE MONTH AND THAT EARNINGS GROWTH SLOWED IN MARCH BODING WELL FOR INFLATION THOUGH NOT FOR CONSUMER SPENDING YET THE REPORTS ONLY SLOWED STOCKS' DECLINE RATHER THAN ATTRACT FRESH BUYERS LONDON MARKET SENTIMENT ALSO WAS WEIGHED DOWN BY MOUNTING CONCERN ABOUT THE POTENTIAL FOR HIGHER US INTEREST RATES IN RESPONSE TO INFLATIONARY PRESSURE AND A SUBSEQUENT DELAY IN FURTHER BRITISH LENDINGRATE CUTS MILAN SHARES ROSE TO A HIGH FOR THIS YEAR AS EXPECTATIONS FOR A CUT SOON IN ITALY'S DISCOUNT RATE HELPED KEEP SENTIMENT POSITIVE BUT THE HOLIDAY FOR MOST EUROPEAN BOURSES DAMPED TRADING IN MADRID WHERE STOCKS ENDED LITTLE CHANGED SYDNEY STOCKS FIRMED LED BY STRONG INTEREST IN SOME BANKING SHARES HONG KONG SHARES STAGED A LATE REBOUND AND ENDED HIGHER AS PROFITTAKING WAS OVERCOME BY BULLISH POLITICAL RUMORS THAT BRITAIN HAD A NEW PROPOSAL FOR CHINA IN NEGOTIATIONS FOR THE COLONY'S NEW AIRPORT PROJECT TAIPEI PRICES FELL AS INVESTORS WERE WORRIED ABOUT FACTIONAL FIGHTING IN TAIWAN'S RULING NATIONALIST PARTY IN SEOUL WHERE INVESTORS WERE OPTIMISTIC ABOUT EXPANDED SOUTH KOREAN ECONOMIC RELATIONS WITH NORTH KOREA AND CHINA STOCKS ROSE FOR THE FOURTH CONSECUTIVE DAY DESPITE SELLING PRESSURE ON LARGECAPITALIZATION ISSUES WELLINGTON SHARES GAINED SHARPLY ON CONTINUED STRENGTH IN THE TELECOMMUNICATIONS SECTOR AMONG CORPORATE DEVELOPMENTS IN LONDON STOREHOUSE FELL 2 PENCE TO 199 PENCE 307 THE RETAILER'S PRETAX PROFIT FOR THE YEAR ENDED MARCH 27 SLIPPED 38 TO 152 MILLION 234 MILLION FROM A YEAR EARLIER AFTER A SPECIAL CHARGE OF 314 MILLION RELATING TO THE SALE OF THE HABITAT AND RICHARDS CHAINS EXCLUDING EXCEPTIONAL CHARGES PRETAX PROFIT MORE THAN DOUBLED TO 466 MILLION FROM 158 MILLION IN LINE WITH MARKET EXPECTATIONS THE DECISION TO MAINTAIN THE DIVIDEND AT 5 PENCE A SHARE ALSO HAD BEEN FORECAST IN SYDNEY WESTPAC BANKING FINISHED UNCHANGED AT 361 AUSTRALIAN DOLLARS US250 AFTER TRADING BETWEEN A354 AND A364 THE BANK'S LOSS AFTER TAXES AND SPECIAL ITEMS FOR ITS FIRST HALF ENDED MARCH 31 NARROWED TO A2046 MILLION US1414 MILLION FROM A YEAREARLIER DEFICIT OF A167 BILLION BEFORE SPECIAL ITEMS WESTPAC HAD PROFIT OF A513 MILLION COMPARED WITH A YEAREARLIER LOSS OF A135 BILLION THE FISCAL FIRSTHALF DIVIDEND WAS HALVED TO 6 CENTS A SHARE 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 9305210014 930521 MARKETING BIG COMPANIES ADD PRIVATELABEL LINES THAT VIE WITH THEIR PREMIUM BRANDS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU CAN'T BEAT THEM JOIN THEM INCREASINGLY THAT IS THE TACTIC OF BIG FOOD AND CONSUMERPRODUCT MANUFACTURERS IN THEIR BATTLE AGAINST PRIVATELABEL MAKERS GIANTS LIKE HJ HEINZ CO BORDEN INC CONAGRA INC AND RALSTON PURINA CO HAVE BEGUN CHURNING OUT THEIR OWN PRIVATELABEL VERSIONS OF PET FOOD DAIRY PRODUCTS PLASTIC BAGS AND CEREALS HOPING TO CORNER BOTH ENDS OF THE CONSUMER SPECTRUM SHOPPERS WHO WANT LOWPRICED STORE BRANDS AND THOSE WHO REMAIN LOYAL TO WELLKNOWN MORE EXPENSIVE BRANDS THE NEW WAVE IS BRANDED MANUFACTURERS APPLYING THEIR SKILLS TO PRIVATE LABEL SAYS BILL BISHOP PRESIDENT OF WILLARD BISHOP CONSULTING A RETAIL CONSULTANT THEY CAN LEVERAGE SOME OF THEIR TRADITIONAL CORE SKILLS IN MARKETING AS WELL AS THEIR PRODUCTION AND DISTRIBUTION BASE AND FIND SYNERGIES BETWEEN THE TWO FOR INSTANCE JAMES RIVER CORP USES THE OPERATIONS THAT MAKE ITS BRAWNY PAPER TOWELS AND NORTHERN BATHROOM TISSUE TO MAKE PRIVATELABEL PAPER TOWELS AND TISSUES FOR PRICE CLUB STORES AND DISPOSABLE PLATES FOR GIANT SUPERMARKETS AMONG OTHER CHAINS WHILE STRESSING ITS CONTINUED FOCUS ON BRANDED PRODUCTS WE CAN'T IGNORE THE FACT THAT PRIVATE LABELS ARE THERE AND WILL BE PURCHASED AND THAT REPRESENTS AN OPPORTUNITY FOR US TO MANUFACTURE PRODUCTS PEOPLE WANT TO BUY AT A GOOD RETURN TO US SAYS JIM GOODWIN EXECUTIVE VICE PRESIDENT OF JAMES RIVER'S CONSUMER BUSINESS THE STRATEGY CARRIES CERTAIN RISKS FOR A COMPANY FOREMOST THAT OF LURING CONSUMERS AWAY FROM ITS ESTABLISHED BRANDS WITH THEIR HIGHER PROFIT MARGINS TO PRIVATE LABELS WHEN YOU DO THAT YOU ABANDON THE MOST PRECIOUS PROPRIETARY ASSET THE BRAND WHICH YOU OWN SAYS CLIVE CHAJET CHAIRMAN OF LIPPINCOTT & MARGULIES A CORPORATEIDENTITY AND IMAGE CONSULTANT MOREOVER COST SAVINGS USUALLY ASSOCIATED WITH PRIVATE LABELS CAN BE QUESTIONABLE FOR BIGBRAND MANUFACTURERS WHO FIND THEMSELVES ADDING STAFF AND POURING RESEARCHANDDEVELOPMENT MONEY INTO PRIVATELABEL PRODUCTS TO MATCH COMPETITION CAMPBELL SOUP CO FOR ONE IS DEEMPHASIZING ITS PRIVATELABEL PICKLES TO FOCUS ON ITS MORE PROFITABLE PREMIUM VLASIC BRAND THE COMPANY SAYS THE ONLY WAY TO GET SUFFICIENT MARGINS FROM PRIVATELABEL PICKLES IS TO CUT PRODUCTION COSTS AND PRODUCE A LOWGRADE PICKLE WHICH COULD ULTIMATELY HURT ITS REPUTATION THE STRENGTH IN BRANDED PRODUCTS IS THAT YOU CAN CHARGE A PREMIUM PRICE AND ENHANCE MARGINS SAYS A SPOKESMAN FOR CAMPBELL WHICH ALSO MAKES CAMPBELL SOUP PEPPERIDGE FARM COOKIES SWANSON FROZEN DINNERS AND PREGO SPAGHETTI SAUCE WE VIEW BRANDS AS THE DRIVING FORCE OF OUR ENTIRE COMPANY THOSE BRANDNAME COMPANIES THAT ARE BOOSTING PRIVATELABEL PRODUCTION SAY THEY ARE CAREFUL NOT TO SLIGHT THEIR PRESTIGIOUS BRANDS OR TO PRICE THEIR PRIVATELABEL PRODUCTS TOO LOW THUS REDUCING PROFIT MARGINS THEY ALSO OFTEN CHOOSE TO BUY AN EXISTING PRIVATELABEL MAKER THAT HAS AN ESTABLISHED MARKET AS A RESULT ANALYSTS FORESEE CONSOLIDATION IN COMING YEARS WITH BIGBRAND MAKERS LIKE CONAGRA AND KEEBLER CO ACQUIRING PRIVATELABEL COMPANIES AND BIG PRIVATELABEL CONCERNS ACQUIRING SMALLER ONES AFTER WATCHING THE GROWTH OF PRIVATELABEL COOKIES OUTPACE PREMIUM BRANDS OVER THE LAST TWO YEARS KEEBLER'S ENGLISH PARENT UNITED BISCUITS HOLDINGS PLC ACQUIRED ILLINOISBASED BAKELINE FOR 70 MILLION IN JANUARY KEEBLER WHICH MAKES CHIPS DELUXE SAYS THE ADDITION OF BAKELINE'S PRIVATELABEL ALLBUTTER CHOCOLATECHIP COOKIES AMONG OTHERS WILL ENHANCE SALES AND SERVICE TO RETAILERS WE HAVE A VERY SOPHISTICATED DISTRIBUTION SYSTEM FROM OUR WAREHOUSE TO RETAILERS AND WE ARE WORKING ON TRYING TO PUT KEEBLER AND BAKELINE TOGETHER IN A WAY THAT SAVES COSTS AND DOES AWAY WITH DUPLICATION A SPOKESMAN SAYS CONAGRA TOO IS DIVING INTO PRIVATELABEL WORK BY MAKING ACQUISITIONS ITS ARROW INDUSTRIES UNIT RECENTLY AGREED TO ACQUIRE UNITED PLASTIC FILMS INC A SMALL PRIVATELABEL TRASHBAG COMPANY CONAGRA ALSO JOINED THE PRIVATE LABEL MANUFACTURERS ASSOCIATION SAYING IT IS PRODUCING STOREBRAND FROZEN ENTREES LIKE POT PIES AND DINNERS ONE REASON COMPANIES VENTURE INTO PRIVATELABEL PRODUCTS IS BECAUSE THEIR OWN BRANDS AREN'T TOP SELLERS AMERICAN SAFETY RAZOR INC'S PERSONNA DISPOSABLERAZOR BRAND RANKS NO 4 BUT THE COMPANY IS THE NATION'S LARGEST MAKER OF PRIVATELABEL BLADES AND DISPOSABLE RAZORS MANUFACTURERS WITH THE NO 3 4 OR 5 BRANDS ARE VERY VULNERABLE SAYS BRIAN SHAROFF PRESIDENT OF THE PRIVATE LABEL MANUFACTURERS ASSOCIATION THERE'S NO ROOM ON THE SHELF FOR FIVE BRANDS AND IN MOST CATEGORIES THE RETAILERS WON'T ALLOW THAT MANY BRANDS THESE MANUFACTURERS HAVE TWO CHOICES TURN TO PRIVATE LABEL OR SOONER OR LATER GO OUT OF THE BUSINESS OF PRODUCING THAT PARTICULAR BRAND PRODUCING PRIVATELABEL GOODS HOWEVER DEMANDS ALTERING PRIORITIES MANAGEMENT MUST FIRMLY ESTABLISH TO OPERATIONS AND PRODUCTION WORKERS WHETHER BRAND OR PRIVATE LABEL HAVE FIRST CLAIMS ON WHAT COMES OFF THE ASSEMBLY LINE OR THERE MIGHT BE DELAYS IN SHIPPING TO KEY CUSTOMERS MOREOVER COMPANIES OFTEN MUST KEEP SEPARATE SALES FORCES SO THAT EACH CAN MAKE ITS DISTINCTIVE PITCH TO RETAILERS THE KEY FOR A BRANDED COMPANY TO GET INTO PRIVATE LABEL IS FOR SENIOR MANAGEMENT TO BUY INTO IT SAYS GABRIEL LOWY AN ANALYST WITH OPPENHEIMER & CO HE POINTS TO RALSTON WHERE MANAGEMENT HAS DECIDED THAT THE BEST WAY TO BROADEN CEREAL SALES IS TO START MAKING PRIVATE LABELS RALSTON'S RICE CHEX WHEAT CHEX AND CORN CHEX BRANDS AREN'T CONSIDERED THE HOTTEST SELLERS AMONG BIGBRAND CEREALS YET RALSTON DOMINATES THE PRIVATELABEL CEREAL MARKET RALSTON DECLINES TO COMMENT ON ITS PRIVATELABEL STRATEGY ONCE SENIOR MANAGEMENT IS ON BOARD COMPANIES MUST CONVINCE SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS TO SWITCH FROM CURRENT PRIVATELABEL PRODUCERS SUCH AS PERRIGO CO AND ANHEUSERBUSCH COS' MERICO INC UNIT HEINZ SAYS IT TRIES TO CONVINCE RETAILERS THAT ITS PRIVATELABEL PRODUCTS ARE BETTER THAN THOSE OF COMPETITORS AND ARE A CRITICAL NOT TEMPORARY PART OF THE COMPANY'S BUSINESS HEINZ MAKES PRIVATELABEL AND PREMIUMBRAND PET FOOD SUCH AS 9LIVES CANNED CAT FOOD AND IS ALSO THE NATION'S BIGGEST PRIVATELABEL CANNEDSOUP PRODUCER THOUGH IT DOES NOT MAKE A PREMIUM SOUP BRAND IN THIS COUNTRY AND DOESN'T PRODUCE PRIVATELABEL KNOCKOFFS OF ITS BESTSELLING KETCHUP WE'RE THE CATEGORY LEADER IN KETCHUP AND WE WANT TO KEEP OUR RESOURCES DEPLOYED AS THEY ARE BEHIND A GREAT BRAND A SPOKESWOMAN SAYS HEINZ CREATED A SEPARATE SALES ORGANIZATION FOR ITS PRIVATELABEL PET FOOD THAT FUNCTIONS INDEPENDENTLY OF THE BRANDED PET FOOD'S SALES TEAM WE WALK INTO A STORE AND SAY HERE'S THE PRIVATE LABEL YOU'RE CARRYING NOW' AND DUMP IT ON A PLATE THEN WE DUMP OURS ON A PLATE AND HAVE THE RETAILER COMPARE THE TWO VISUALLY SAYS WILLIAM R JOHNSON PRESIDENT AND CHIEF EXECUTIVE OF THE UNIT THAT MAKES AMONG OTHER THINGS HEINZ'S 9LIVES AND PRIVATELABEL PET FOOD THE PRIVATELABEL SALES TEAM THEN DISCUSSES NUTRITIONAL REQUIREMENTS PALATABILITY TESTS AND PRICING AS WELL AS THE BENEFIT OF HEINZ SHIPPING PRIVATE AND BRANDED PRODUCTS TOGETHER MEANWHILE HEINZ TRIES TO MAINTAIN THE CACHET OF ITS PREMIUM 9LIVES BRAND MR JOHNSON NOTES THAT THERE IS NO NUTRITIONAL OR QUALITY DIFFERENCE BETWEEN ITS PRIVATE AND PREMIUM PET FOOD BUT THAT 9LIVES IS PREPARED DIFFERENTLY AND LOOKS BETTER THE 9LIVES PRODUCTS COME SLICED HEINZ'S PRIVATELABEL CAT FOOD IS CHOPPED THE COST OF SLICED IS PROHIBITIVE FOR PRIVATE LABEL TO CARRY BUT WE CARRY IT UNDER THE BRANDED UMBRELLA HE SAYS THERE'S NO QUALITY DIFFERENCE OPPENHEIMER'S MR LOWY SAYS PRIVATELABEL PRODUCTS ARE CONSISTENTLY MATCHING THE BRANDED IN QUALITY HE ADDS THE ISSUE FOR BRANDED COMPANIES BECOMES WHETHER THEY'RE GOING TO ENTER PRIVATELABEL PRODUCTION WHERE THE MARGINS ARE GOING TO BE SOMEWHAT LOWER VS CONTINUING TO LOSE VOLUME TO A PRIVATELABEL COMPETITOR OVER THE LONG TERM IT BECOMES MORE ECONOMICAL FOR THEM TO BE IN SOME FORM OF PRIVATELABEL SUPPLY 9305210013 930521 STOREHOUSE PLC POSTS SLIDE IN PRETAX PROFIT OF 38 FOR FISCAL YEAR LONDON STOREHOUSE PLC A BRITISH RETAILER SAID ITS PRETAX PROFIT SLIPPED 38 IN THE YEAR ENDED MARCH 27 TO 152 MILLION 234 MILLION STOREHOUSE SAID THE RESULT WAS DEPRESSED BY AN EXCEPTIONAL CHARGE OF 314 MILLION RELATING TO THE SALE OF RETAIL CHAINS CONRAN'S HABITAT AND RICHARDS SHOPS LTD EXCLUDING EXCEPTIONAL CHARGES STOREHOUSE SAID ITS PRETAX PROFIT ROSE TO 466 MILLION FROM 158 MILLION A YEAR EARLIER THE RESULT WAS IN LINE WITH MARKET EXPECTATIONS ITS DECISION TO MAINTAIN THE DIVIDEND PAYOUT AT FIVE PENCE A SHARE HAD BEEN FORECAST STOREHOUSE SAID THAT PROFIT FROM RETAIL OPERATIONS INCLUDING LOSSES FROM DISCONTINUED BUSINESSES QUADRUPLED TO 43 MILLION FROM 10 MILLION A YEAR EARLIER PROFIT FROM ASSOCIATED INTERESTS AND OTHER INCOME ROSE TO 51 MILLION FROM 49 MILLION OF THE EXCEPTIONAL CHARGE 254 MILLION RELATES TO THE SALE OF CONRAN'S HABITAT 47 MILLION RELATES TO THE SALE OF RICHARD SHOPS AND 13 MILLION IS FOR THE DISPOSAL OF HABITAT EUROPE STOREHOUSE SOLD CONRAN'S HABITAT TO MTLG ACQUISITION CORP A VEHICLE OWNED BY THE FORMER CHAIRMAN AND CHIEF EXECUTIVE OF BLOOMINGDALE'S DEPARTMENT STORES MARVIN TRAUB LAST DECEMBER ITS HABITAT HOUSEWARE STORES IN THE UK AND FRANCE WERE SOLD TO STICHTING INGKA FOUNDATION A NETHERLANDSBASED CHARITABLE FOUNDATION FOR 78 MILLION IN NOVEMBER RICHARD SHOPS WAS SOLD AT THE SAME TO TIME TO SEARS PLC OF THE UK FOR 30 MILLION 9305210012 930521 RETAILING WALMART BOWS TO PRICING REALITY BY CHANGING 4 LETTERS BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL IN A MOVE THAT SHOWS HOW HARD IT IS TO BE THE DISCOUNT LEADER IN TODAY'S BARGAINBASEMENT RETAILING ENVIRONMENT WALMART STORES INC HAS BEGUN PHASING OUT ITS SLOGAN ALWAYS THE LOW PRICE ALWAYS THE NEW LINE ALREADY CROPPING UP IN TV CAMPAIGNS ALWAYS LOW PRICES ALWAYS A COMPANY SPOKESWOMAN PLAYED DOWN THE IMPORTANCE OF THE FOURLETTER CHANGE SAYING WALMART IS JUST ADDING THE ALTERED SLOGAN TO THE MIX BUT A PERSON CLOSE TO THE COMPANY SAYS THE OLD SLOGAN IS OUT FOR GOOD AND WHILE IT WILL REMAIN ON EXISTING SIGNS IN STORES FOR A SHORT TIME ALL NEW ADS AND INSTORE SIGNS WILL CARRY THE MODIFIED VERSION THE CHANGE SUGGESTS THAT THE NATION'S LEADING RETAILER IS BOWING TO A NEW REALITY FOUNDER SAM WALTON BUILT HIS EMPIRE BY BEATING EVERYBODY ELSE'S PRICES RELENTLESSLY PUSHING SUPPLIERS MIDDLEMEN AND HIS OWN WORKERS TO WHACK AWAY AT COSTS AND BECOME EVER MORE EFFICIENT BUT THE DAYS WHEN WALMART HAD TO UNDERCUT ONLY SMALLTOWN MERCHANTS ARE LONG GONE MORE AND MORE THE COMPANY'S NEW STORES RUB ELBOWS WITH OTHER BIG DISCOUNTERS SUCH AS KMART CORP TARGET AND VENTURE STORES INC STORES NOT TO MENTION SOCALLED CATEGORY KILLERS SUCH AS TOYS R US INC WHICH FLEX BIG MARKETING MUSCLE IN NARROWER PRODUCT LINES THE FACT IS NO ONE ALWAYS HAS THE LOWEST PRICE THAT'S JUST THE NATURE OF THIS INDUSTRY SAYS A SPOKESWOMAN FOR DAYTON HUDSON CORP'S TARGET STORES INDEED TARGET RECENTLY COMPLAINED TO SEVERAL BETTER BUSINESS BUREAUS AND RAN A CAMPAIGN ACCUSING WALMART OF USING MISLEADING PRICE COMPARISONS IN ADS CONTRASTING PRICES AT THE TWO CHAINS TARGET'S ADS WHICH RAN UNDER HEADLINES STATING THIS NEVER WOULD HAVE HAPPENED IF SAM WALTON WAS ALIVE PROVOKED A FURIOUS PUBLIC RESPONSE FROM WALMART BUT THEY ALSO HELPED ADVOCATES OF CHANGING THE COMPANY'S SLOGAN WIN A CONTINUING INTERNAL DEBATE ACCORDING TO ONE OF THOSE INVOLVED IN ANY CASE THE DECISION APPEARS TO HAVE BEEN MADE QUITE RECENTLY BY THE BENTONVILLE ARK COMPANY WALMART'S 1993 ANNUAL REPORT SENT OUT JUST A FEW WEEKS AGO STILL FEATURED THE OLD SLOGAN ON ITS FRONTISPIECE OF COURSE NONE OF THIS IS TO SAY WALMART IS DROPPING ITS PRICECUTTING STRATEGY AS IT HAS FOR YEARS THE COMPANY CONSISTENTLY BEATS THE COMPETITION IN MOST CATEGORIES ACCORDING TO A SERIES OF INDEPENDENT STUDIES BUT THE CLAIM OF THE LOW PRICE ALL THE TIME HAS BECOME RISKIER CONSUMERS TAKE THESE THINGS VERY VERY LITERALLY SAYS RETAIL CONSULTANT RUSSELL FERSTANDIG PRESIDENT OF COMPETITIVE ADVANTAGE CONSULTING AS SOON AS THEY FIND ANY EVIDENCE NO MATTER HOW MINOR THAT THE MESSAGE ISN'T TRUE THERE'S A STRONG NEGATIVE REFLEX REACTION HE ADDS THIS NEW STATEMENT IS A MUCH EASIER MESSAGE FOR THE CONSUMER TO BELIEVE AND IT'S MUCH HARDER TO BLOW A HOLE IN THE NIGGLING OVER A FEW LETTERS ISN'T NEW AT WALMART ACCORDING TO THE WALMART SOURCE MR WALTON ORIGINALLY PROPOSED AN EVEN MORE AGGRESSIVE SLOGAN ABOUT FIVE YEARS AGO ALWAYS THE LOWEST PRICE ALWAYS BUT HE AGREED TO DROP THE EST AFTER OTHERS AT THE COMPANY ARGUED THAT THE SLOGAN WOULD BE INTERPRETED AS A PROMISE AND ONE THE COMPANY COULDN'T MEET ON EVERY ITEM AT EVERY STORE ALL THE TIME EVEN THE COMPROMISE LINE ALWAYS THE LOW PRICE ALONG WITH A VARIATION ALWAYS THE LOW PRICE ON THE BRANDS YOU TRUST LEFT OPPONENTS UNHAPPY FOR THE SAME REASON BUT IT WAS MR WALTON'S COMPANY AND HIS CALL AFTER MR WALTON DIED LAST YEAR THE ISSUE RESURFACED DAVID GLASS HIS SUCCESSOR AS PRESIDENT AND CHIEF EXECUTIVE OFFICER APPARENTLY WAS MORE RECEPTIVE TO THE ARGUMENT THAT PLEDGING LOW PRICES WAS MORE REALISTIC THAN IMPLICITLY GUARANTEEING THE LOW PRICE 9305210011 930521 AMERICREDIT HOLDERS SET BACK AS LAWSUIT IS DISMISSED BY JUDGE FORT WORTH TEXAS A FEDERAL JUDGE DISMISSED A CLASSACTION SUIT BY SHAREHOLDERS ACCUSING URCARCO INC NOW KNOWN AS AMERICREDIT CORP OF VIOLATING FEDERAL SECURITIES LAWS AND DEFRAUDING INVESTORS IN A BITING 15PAGE ORDER US DISTRICT JUDGE JOSEPH KENDALL RULED THAT THE PLAINTIFFS DIDN'T GIVE ENOUGH DETAILS TO SUPPORT THEIR ALLEGATIONS AGAINST THE COMPANY ITS ACCOUNTANTS ITS UNDERWRITERS AND SOME OF ITS MANAGEMENT ALTHOUGH THE PLAINTIFFS MIGHT POSIT THAT EVERYONE AT URCARCO AND ALL IN THE LEGION OF DEFENDANTS ENGAGED IN A COURSE OF WRONGFUL CONDUCT THEY OFFER NO FACTS TO BUTTRESS THEIR CONCLUSIONS THE JUDGE WROTE THE SUIT DISMISSED WAS A CONSOLIDATION OF FOUR SEPARATE LAWSUITS WHICH WERE FILED IN JULY AND AUGUST OF 1990 FOLLOWING NEGATIVE NEWS REPORTS ABOUT THE COMPANY AND AN ACCOMPANYING DROP IN ITS STOCK PRICE ACCORDING TO THE JUDGE'S RULING AMONG OTHER CLAIMS THE PLAINTIFFS ALLEGE THAT THE COMPANY MISREPRESENTED ITS FINANCIAL HEALTH WHEN IT MADE AN INITIAL PUBLIC OFFERING IN NOVEMBER 1989 AND ITS SECOND SECURITIES OFFERING IN MAY 1990 SPECIFICALLY THE PLAINTIFFS CLAIMED THE COMPANY CONCEALED A LIQUIDITY CRISIS THE COMPANY WHICH RECENTLY QUIT THE USEDCAR SELLING BUSINESS BUT WHICH CONTINUES ITS OTHER BUSINESS OF FINANCING AUTOMOBILE SALES SAID THE RULING CONFIRMS THE COMPANY'S EARLIEST FEELINGS ABOUT THE LAWSUITS AT THE TIME THE COMPANY CALLED THE SUITS GROUNDLESS FRIVOLOUS AND IN BAD FAITH ATTORNEYS FOR THE PLAINTIFFS SAID THEY ARE WEIGHING AN APPEAL TO A HIGHER COURT WE THINK WE HAVE A DARN GOOD CASE SAID DANIEL BERGER AN ATTORNEY AT THE MANHATTAN FIRM OF BERNSTEIN LITOWITZ BERGER & GROSSMAN AND ONE OF TWO LEAD COUNSELS IN THE CASE 9305210010 930521 COMMODITY TRADERS ARE ORDERED BY PANEL TO PAY 86 MILLION CHICAGO AN ARBITRATION PANEL ORDERED TWO FORMER COMMODITY TRADERS TO PAY LEE B STERN & CO 86 MILLION FOR DAMAGES RESULTING FROM UNAUTHORIZED TRADES LAST YEAR IN THE CHICAGO BOARD OF TRADE'S TREASURYBOND FUTURES PIT THE TWO TRADERS DARRELL ZIMERMAN AND ANTHONY CATALFO UNLEASHED A HUGE WAVE OF FUTURES TRADES THAT MOMENTARILY MOVED PRICES IN THE BIGGEST CBOT TRADING PIT THE STERN FIRM WHICH GUARANTEED MR ZIMMERMAN'S TRADES WAS FORCED TO PAY MORE THAN 5 MILLION IN LOSSES ON THE TRANSACTIONS ANOTHER CHICAGO FIRM GOLDENBERG HEYMEYER & CO WHICH GUARANTEED MR CATALFO'S TRADES HAS BEEN HOLDING 11 MILLION IN ALLEGED PROFITS FROM THE TRADES SINCE OCTOBER UNDER THE CBOT PANEL'S RULING THAT MONEY WILL GO TO STERN & CO THE PANEL ALSO FOUND THAT MR ZIMMERMAN AND MR CATALFO WERE GUILTY OF FRAUD UNDER EXCHANGE RULES NEITHER TRADER COULD BE REACHED FOR COMMENT YESTERDAY ON OCT 22 MR ZIMMERMAN SOLD A HUGE QUANTITY OF BOND FUTURES CONTRACTS IN A COLOSSAL WAGER THAT FUTURES PRICES WOULD DECLINE SIMULTANEOUSLY MR CATALFO MADE A SIMILAR WAGER IN THE CBOT'S BOND OPTIONS PIT THE PRICE SWINGS CREATED BY MR ZIMMERMAN'S BIG ORDER MADE MR CATALFO'S TRADES PROFITABLE EXCHANGE OFFICIALS SAY BROKERS IN THE BOND FUTURES PIT HOWEVER ALERTED SECURITY PERSONNEL THAT MR ZIMMERMAN WAS ORDERING TRADES THAT STERN & CO HAD NOT AUTHORIZED HIM TO MAKE BOTH MR ZIMMERMAN AND MR CATALFO WERE LATER SUSPENDED BY THE CBOT STERN & CO HAD ASKED THAT THE BROKERS IN THE TREASURYBOND PIT WHO ACCEPTED MR ZIMMERMAN'S TRADES ALSO BE MADE LIABLE FOR THE DAMAGES BUT THE ARBITRATION PANEL RULED THAT THE BROKERS WEREN'T RESPONSIBLE FOR THE LOSSES 9305210009 930521 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ALLNET COMMUNICATION SERVICES INC 85 MILLION OF SENIOR SUBORDINATED DEBENTURES DUE MAY 15 2003 PRICED AS 9S AT 99187 TO YIELD 9125 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR FIVE YEARS THE ISSUE WAS PRICED THROUGH DEALERS LED BY PAINEWEBBER INC THE ISSUE IS RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP ALLNET IS A UNIT OF ALC COMMUNICATIONS CORP CHEMICAL BANKING CORP 200 MILLION OF SUBORDINATED NOTES DUE JUNE 1 2005 PRICED AT PAR TO YIELD 7 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 093 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED BAA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FLORIDA POWER & LIGHT CO 175 MILLION OF FIRST MORTGAGE BONDS DUE JUNE 1 2024 WON IN COMPETITIVE BIDDING BY A GROUP LED BY KIDDER PEABODY & CO AND REOFFERED AT 9825 TO YIELD 7775 THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 08 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND KIDDER PEABODY WON THE BONDS WITH A BID THAT RESULTED IN A NET INTEREST COST TO THE COMPANY OF 7819 THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P FLORIDA POWER & LIGHT IS A UNIT OF FPL GROUP INC HELLER FINANCIAL INC 200 MILLION OF NOTES DUE MAY 15 2000 PRICED AS 6 1/2S AT 997 TO YIELD 6555 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 0875 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO LA QUINTA MOTOR INNS INC 120 MILLION OF SENIOR SUBORDINATED NOTES DUE MAY 15 2003 PRICED AT PAR TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS AND WAS INCREASED IN SIZE FROM AN INITIAL 100 MILLION RATED SINGLEB2 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP LONG ISLAND LIGHTING CO 200 MILLION OF DEBENTURES DUE JUNE 1 2005 PRICED AS 7 1/8S AT 998 TO YIELD 715 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 11 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS NEWS AMERICA HOLDINGS INC 100 MILLION OF SENIOR NOTES DUE MAY 15 2000 PRICED AS 7 1/2S AT 99826 TO YIELD 7531 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 186 PERCENTAGE POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED BA2 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH CITICORP SECURITIES MARKETS INC NEWS AMERICA HOLDINGS IS A UNIT OF NEWS CORP CNL REALTY INVESTORS TWO MILLION COMMON SHARES PRICED AT 1350 APIECE THROUGH UNDERWRITERS LED BY LEGG MASON WOOD WALKER INC INDIANA ENERGY INC ONE MILLION COMMON SHARES PRICED AT 30875 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO MFS COMMUNICATIONS CO INITIAL OFFERING OF 11 MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH MANAGERS SALOMON BROTHERS INC AND BEAR STEARNS & CO IN THE US AND THROUGH SALOMON BROTHERS INTERNATIONAL LTD AND BEAR STEARNS INTERNATIONAL LTD ABROAD NORTHERN STATES POWER 23 MILLION COMMON SHARES PRICED AT 43625 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NUKOTE HOLDING INC 25 MILLION CLASS A COMMON SHARES PRICED IN A SECONDARY OFFERING AT 1850 APIECE THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP STOLT COMEX SEAWAY SA INITIAL OFFERING OF 3 MILLION COMMON SHARES PRICED AT 1550 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO TITAN WHEEL INTERNATIONAL INC INITIAL OFFERING OF 27 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO NUVEEN PREMIUM INCOME MUNI FUND 5 INITIAL OFFERING OF EIGHT MILLION COMMON SHARES OF PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO HOUSTON INDEPENDENT SCHOOL DISTRICT 1126 MILLION SERIES 1993 REFUNDING BONDS APPARENTLY WON BY A MERRILL LYNCH & CO DALLAS GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 553 YIELDS RANGE FROM 35 IN 1995 TO 565 IN 2011 THE BONDS ARE INSURED BY THE TEXAS PERMANENT SCHOOL FUND AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTIES TENN 3197 MILLION GENERAL OBLIGATION REFUNDING BONDS OF 1993 PRICED BY A GROUP LED BY NASHVILLEBASED JC BRADFORD & CO YIELDS RANGE FROM 275 IN 1994 TO 55 IN 2008 BOTH MOODY'S AND S&P HAVE RATED THE ISSUE DOUBLEA PALM BEACH COUNTY FLA 1227 MILLION SERIES 1993 CRIMINALJUSTICEFACILITIES REVENUE REFUNDING BONDS PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP YIELDS RANGE FROM 275 IN 1994 TO 56 IN 2010 AND 2011 THE ISSUE IS INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRIES TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P SAN DIEGO COUNTY CALIF 205 MILLION 1993 MASTER REFUNDING CERTIFICATES OF PARTICIPATION PRICED BY A MORGAN STANLEY & CO GROUP YIELDS FOR REOFFERED SECURITIES RANGE FROM 235 IN 1993 TO 545 IN 2005 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1543 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 775 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS FEDERAL HOME LOAN MORTGAGE CORP 350 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1540 IS BACKED BY FREDDIE MAC GOLD 20YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 775 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 197 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES THE OFFERING SERIES 1993100 IS BACKED BY FANNIE MAE 9 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 9675 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 239 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY JP MORGAN SECURITIES THE OFFERING SERIES 1993105 IS BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8141 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 294 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF STRIPPED MORTGAGE SECURITIES STRIPPED MORTGAGEBACKED SECURITIES TRUST 226 OFFERED BY NOMURA SECURITIES THE OFFERING IS BACKED BY INTERESTONLY STRIPS FROM FANNIE MAE'S 1993100 REAL ESTATE MORTGAGE INESTMENT CONDUIT OFFERING WHICH IN TURN IS BACKED BY FANNIE MAE 9 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 9675 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 239 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 40 MILLION OF STRIPPED MORTGAGE SECURITIES STRIPPED MORTGAGEBACKED SECURITIES TRUST 230 OFFERED BY JP MORGAN SECURITIES THE OFFERING IS BACKED BY INTERESTONLY STRIPS FROM FANNIE MAE'S 1993105 REAL ESTATE MORTGAGE INVESTMENT CONDUIT OFFERING WHICH IN TURN IS BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8141 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 294 YEARS WORLD OMNI FINANCIAL 2651 MILLION OF AUTOMOBILE LEASE SECURED NOTES PRICED IN TWO PARTS THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP ACCORDING TO MCM CORPORATEWATCH THE 2538 MILLION CLASS A NOTES OF THE ISSUE WORLD OMNI LEASING ASSET BACKED TWO WAS PRICED AS 46S AT 99 27/32 TO YIELD 4734 A 70BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED TWOYEAR NOTE THE NOTES ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE 1128 MILLION CLASS B NOTES WERE PRICED AS 5S AT 99 27/32 TO YIELD 5134 A 110BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED TWOYEAR NOTE THE NOTES WERE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE AVERAGE LIFE FOR BOTH CLASSES OF NOTES IS 187 YEARS WITH AN EXPECTED MATURITY OF DEC 15 1996 MONTHLY PAYMENTS BEGIN JUNE 15 1993 WORLD OMNI IS THE FINANCING ARM OF SOUTHEAST TOYOTA DISTRIBUTORS EUROPEAN BANK INVESTMENTS TRUST SPECIALPURPOSE TRUST 116 MILLION OF FLOATING RATE EURONOTES DUE MARCH 29 2001 REOFFERED AT 9965 VIA GOLDMAN SACHS INTERNATIONAL GUARANTOR FINANCIAL GUARANTEE INSURANCE CORP INTEREST FLOATS AT 20 BASIS POINTS ABOVE THREEMONTH LIBOR FOR STERLING INTEREST PAID BY CREDIT SUISSE FINANCIAL PRODUCTS LTD VIA SWAP AGREEMENT NOTES SECURED ON PORTFOLIO OF STERLINGDENOMINATED SENIORRANKED SECURITIES ISSUED BY BANKS FROM SWITZERLAND GERMANY FRANCE AND UNITED KINGDOM WITH MINIMUM DEBT RATING OF DOUBLEAMINUS BY S&P AND DOUBLEA3 BY MOODY'S FEES 03 POINT GRACE 1 INTERNATIONAL LTD SPECIALPURPOSE VEHICLE BASED IN CAYMAN ISLANDS 100 MILLION OF 818 EXTENDABLE EUROBONDS DUE MARCH 24 2000 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD NOTES SECURED ON PORTFOLIO OF US MULTIFAMILY AND COMMERCIAL LOANS ORIGINATED BY DIFFERENT US LENDERS BONDHOLDERS HAVE OPTION TO EXTEND LIFE OF BONDS TO MARCH 24 2002 PAYABLE SEMIANNUALLY FEES UNDISCLOSED PETROLEO BRASILEIRO SA BRAZIL 300 MILLION OF FLOATING RATE EURONOTES DUE JUNE 8 1998 AT ISSUE AND FIXED REOFFER PRICE 995 VIA CHASE INVESTMENT BANK LTD INTEREST FLOATS AT 440 BASIS POINTS ABOVE SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS PAYABLE SEMIANNUALLY FEES 1125 POINTS 9305210008 930521 PRETAX PROFIT ROSE 10 AT JAPAN'S ITOCHU IN LATEST FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S ITOCHU CORP ONE OF JAPAN'S LEADING GENERAL TRADING HOUSES ANNOUNCED THAT ITS UNCONSOLIDATED PRETAX PROFIT ROSE 10 TO 4983 BILLION YEN 4503 MILLION IN THE LATEST FISCAL YEAR FROM 4528 BILLION YEN A YEAR EARLIER WEAKER REVENUE WAS BALANCED BY INCREASED NET FINANCIAL INCOME NET PROFIT FELL 71 TO 1013 BILLION YEN FROM 1091 BILLION YEN REVENUE FELL 74 TO 18529 TRILLION YEN 16746 BILLION FROM 20012 TRILLION YEN FOR THE YEAR ENDING MARCH 31 HOWEVER ITOCHU EXPECTS ITS PRETAX PROFIT TO DECLINE AND REVENUE TO DETERIORATE FURTHER AN ITOCHU SPOKESMAN SAID THE YEN'S RISE IN THE LATEST FISCAL YEAR TRIMMED ABOUT 350 BILLION YEN FROM THE COMPANY'S REVENUE ITOCHU'S PROJECTION THAT REVENUE WILL TOTAL ROUGHLY 175 TRILLION YEN THIS FISCAL YEAR IS BASED ON AN ESTIMATE FOR THE DOLLAR TO AVERAGE 115 YEN IN THE TERM HE SAID IN THE LATEST YEAR ITOCHU SAID REVENUE SUFFERED AS DOMESTIC TRANSACTIONS AND IMPORT ACTIVITY SLACKENED IN LINE WITH JAPAN'S ECONOMIC SLOWDOWN ALTHOUGH EXPORT ACTIVITY INCREASED WITH HELP FROM PLANT EXPORTS TO ASIAN NATIONS OVERSEAS TRANSACTIONS SUFFERED AMID A DROPOFF IN PRECIOUS METAL DEALINGS IT SAID ITOCHU SAID IT HAS BEEN TRYING TO WITHDRAW FROM OVERSEAS REALESTATE OPERATIONS AND PROCEED WITH RESTRUCTURING AS PROFIT MARGINS IN THE SECTOR WORSEN THE COMPANY PULLED OUT OF THREE PROPERTY OPERATIONS IN AUSTRALIA AND ONE IN NEW YORK LAST FISCAL YEAR AND THERE IS A POSSIBILITY THAT ITOCHU MAY PULL OUT OF ONE BUSINESS IN THE UK THIS FISCAL YEAR THE SPOKESMAN SAID THE DEVALUATION OF MARKETABLE SECURITIES HOLDINGS RESULTED IN 96 BILLION YEN OF EXTRAORDINARY LOSSES MOST OF WHICH STEMMED FROM THE PLUNGE OF SHARES OF KLOCKNER WERKE AG OF GERMANY WHICH FILED FOR BANKRUPTCY IN DECEMBER 9305210007 930521 HART HOLDING SETTLES SUIT FILED BY HOLDERS OVER ITS REVERSE SPLIT DARIEN CONN HART HOLDING CO WHICH INTENDS TO GO PRIVATE WITH A REVERSE STOCK SPLIT SAID IT REACHED A TENTATIVE SETTLEMENT WITH SUING SHAREHOLDERS WHO PROTESTED THE PLAN IN SETTLING THE SUIT THE COMPANY INCREASED THE PAYMENT BEING MADE TO INDIVIDUAL SHAREHOLDERS BUT HART HOLDING ALSO INCREASED THE NUMBER OF ORIGINAL SHARES REQUIRED TO RECEIVE A SHARE IN THE NEWLY FORMED PRIVATE COMPANY UNDER TERMS OF THE AGREEMENT HART HOLDING WILL INCREASE ITS PAYMENT TO HOLDERS OF FRACTIONAL SHARES FOLLOWING THE SPLIT TO 225 PER ORIGINAL SHARE COMPARED WITH THE INITIALLY PROPOSED 50 CENTS PER ORIGINAL SHARE IN ADDITION THE COMPANY CHANGED THE EFFECTIVE REVERSE SPLIT TO ONEFOR600 FROM ONEFOR300 SHAREHOLDERS SUED AFTER THE ORIGINAL REVERSE SPLIT OFFER CITING A TRADING RANGE FOR HART HOLDING THAT HAD BEEN CLOSER TO 3 PER SHARE ON THE SOCALLED PINK SHEETS HART HOLDING SAID THAT FOLLOWING THE REVERSE SPLIT HOLDERS OF FRACTIONAL SHARES WILL BE REQUIRED TO ACCEPT THE 225 PER ORIGINAL SHARE THE REVERSE SPLIT WOULD REDUCE THE NUMBER OF HART HOLDING SHAREHOLDERS TO SUCH A LEVEL THAT THE COMPANY WOULD ESSENTIALLY BE PRIVATE AND NO LONGER BE REQUIRED TO FILE CERTAIN INFORMATION WITH REGULATORS HART HOLDING WHOSE MAIN BUSINESS IS A 94 STAKE IN REEVES INDUSTRIES INC A MAKER OF APPAREL TEXTILES AND INDUSTRIAL COATED FABRICS SAYS IT WILL SAVE ABOUT 85000 A YEAR IN PUBLIC REPORTING COSTS OF ITS APPROXIMATELY 2000 SHAREHOLDERS 13 OWN ONLY ONE SHARE EACH AND 745 HOLD 10 SHARES OR FEWER ACCORDING TO THE COMPANY OF THE APPROXIMATELY 13 MILLION SHARES OUTSTANDING ONLY ABOUT 586000 ARE HELD BY ANYONE OTHER THAN OFFICERS OR DIRECTORS 9305210006 930521 ONTARIO INTRODUCES NEW CORPORATE TAX TO HELP CUT DEFICIT TORONTO THE ONTARIO GOVERNMENT INTRODUCED TOUGH NEW TAX MEASURES IN ITS BUDGET INCLUDING A CORPORATE MINIMUM TAX IN AN EFFORT TO CUT THE PROVINCE'S SOARING DEFICIT ONTARIO FINANCE MINISTER FLOYD LAUGHREN SAID HE IS PROJECTING A BUDGET DEFICIT OF 92 BILLION CANADIAN DOLLARS US73 BILLION FOR THE YEAR ENDING MARCH 31 1994 WITHOUT THE NEW TAX MEASURES AND PLANNED SPENDING CUTS MR LAUGHREN SAID THE DEFICIT COULD REACH ALMOST C17 BILLION UNDER THE NEW BUDGET ONTARIANS WILL BE HIT WITH HIGHER PERSONAL INCOME TAXES AND WILL HAVE TO PAY THE PROVINCE'S 8 SALES TAX ON A BROADER RANGE OF PRODUCTS AND SERVICES FOR EXAMPLE THE SALES TAX WILL BE APPLICABLE TO MOST INSURANCE PREMIUMS ONTARIO IS EXPECTING ABOUT C44 BILLION IN REVENUE THIS FISCAL YEAR TOTAL SPENDING IS FORECAST AT C531 BILLION DOWN FROM C538 BILLION LAST YEAR THE BUDGET INCLUDES C2 BILLION IN CONCESSIONS FROM GOVERNMENT WORKERS BUT THE WORKERS' UNIONS HAVE YET TO AGREE ON ANY CONCESSIONS THE GOVERNMENT UNVEILED A CORPORATE MINIMUM TAX WHICH IS NEEDED TO STOP LARGE PROFITABLE CORPORATIONS FROM USING THE TAX LAWS TO AVOID PAYING THEIR FAIR SHARE MR LAUGHREN SAID THE TAX WILL APPLY TO COMPANIES WITH EITHER GROSS REVENUE ABOVE C10 MILLION OR TOTAL ASSETS ABOVE C5 MILLION THAT REPRESENTS ABOUT 10 OF THE PROVINCES' COMPANIES THE MINISTER SAID THE CORPORATE MINIMUM TAX WILL BE PHASED IN OVER THE NEXT FEW YEARS COMPANIES WILL BE TAXED AT 4 OF A BASE DETERMINED BY A FORMULA TO THE EXTENT THAT THE MINIMUM TAX LIABILITY EXCEEDS THE REGULAR TAX LIABILITY THE CORPORATE MINIMUM TAX IS EXPECTED TO RAISE ABOUT C100 MILLION ANNUALLY WHEN FULLY IMPLEMENTED 9305210005 930521 LAW SEC SETTLEMENT BANS EXCEO OF DREXEL FROM EVER RUNNING A SECURITIES FIRM BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL FREDERICK H JOSEPH FORMER CHIEF EXECUTIVE OFFICER OF DREXEL BURNHAM LAMBERT INC REACHED A SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION THAT APPEARED TO SIGNAL A NEW POLICY TOWARD TOP EXECUTIVES AND HOW THEY OVERSEE THEIR EMPLOYEES' ACTIVITIES UNDER THE SETTLEMENT MR JOSEPH WAS BANNED FROM EVER RUNNING A SECURITIES FIRM AGAIN IN WHAT THE SEC SAID WAS HIS FAILURE TO RESPOND TO RED FLAGS THAT SHOULD HAVE ALERTED HIM TO THE ILLEGAL ACTIVITIES OF MICHAEL MILKEN THE SETTLEMENT ALSO PROHIBITS MR JOSEPH FROM ANY OTHER SUPERVISORY ROLE IN THE INDUSTRY FOR THREE YEARS THE SEC REACHED A SIMILAR SETTLEMENT WITH EDWIN KANTOR A FORMER DREXEL SENIOR VICE PRESIDENT IN CHARGE OF TRADING ACTIVITIES WHO WAS BANNED FOR LIFE FROM HEADING A DEPARTMENT IN A SECURITIES FIRM AND FROM ANY OTHER SUPERVISORY POSITION FOR THREE YEARS BUT THE SETTLEMENTS DON'T BAR THE TWO MEN FROM WORKING IN THE INDUSTRY IN THE SETTLEMENTS THE SEC APPEARED TO BE SPELLING OUT A NEW POLICY THAT TOP EXECUTIVES HAVE A DUTY NOT ONLY TO STOP ILLEGAL ACTIVITIES ONCE THEY DISCOVER THEM BUT TO THOROUGHLY INVESTIGATE HINTS OF WRONGDOING BY SUBORDINATES THE SEC RAPPED BOTH MESSRS JOSEPH AND KANTOR FOR FAILING TO REASONABLY SUPERVISE MR MILKEN WHO PLEADED GUILTY TO SIX SECURITIESRELATED FELONIES RED FLAGS AND SUGGESTIONS OF IRREGULARITIES DEMAND INQUIRY AS WELL AS ADEQUATE FOLLOWUP AND REVIEW THE AGENCY SAID IN THE JOSEPH SETTLEMENT INDIVIDUALS FAMILIAR WITH THE NEGOTIATIONS SAID APPROVAL OF THE SETTLEMENT WAS HELD UP FOR SEVERAL MONTHS BECAUSE THE COMMISSION WAS CONCERNED THAT THE ORIGINAL WORDING OF THE AGREEMENT DIDN'T ADDRESS STRONGLY ENOUGH THE DUTY TO INQUIRE THE SETTLEMENTS WITH MESSRS JOSEPH AND KANTOR HOLD TOP MANAGEMENT TO A HIGHER DUTY THAN WAS DESCRIBED IN AN SEC ADMINISTRATIVE ORDER LAST YEAR CONCERNING THE TREASURY AUCTION SCANDAL AT SALOMON BROTHERS INC IN THAT ORDER THREE FORMER SENIOR OFFICIALS OF SALOMON INC INCLUDING CHAIRMAN JOHN GUTFREUND WERE PUNISHED FOR NOT IMMEDIATELY TAKING STEPS AFTER LEARNING OF WRONGDOING HERE MR JOSEPH IS BEING PUNISHED FOR NOT RESPONDING TO INDICATIONS IN HIS CONVERSATIONS WITH MR MILKEN THAT THE FORMER HEAD OF DREXEL'S JUNKBOND DEPARTMENT WAS UP TO NO GOOD IT ADDS AN ADDITIONAL ELEMENT OF THE DUTY TO INQUIRE SAID THOMAS NEWKIRK ASSOCIATED DIRECTOR OF THE SEC'S DIVISION OF ENFORCEMENT BERT REIN MR JOSEPH'S ATTORNEY SAID I'M NOT SURE ANYBODY REALIZED SUCH A STANDARD EXISTED BEFORE MR REIN SAID CHIEF EXECUTIVES FEARING POSSIBLE LIABILITY MIGHT RESPOND TO SUCH A POLICY BY TRYING TO LIMIT THEIR KNOWLEDGE OF SUBORDINATES' ACTIVITIES SOME SECURITIES LAWYERS SAID THE JOSEPH AND KANTOR CIVIL SETTLEMENTS WERE LENIENT GIVEN THE POSITION DREXEL HOLDS AS ONE OF THE MOST CORRUPT INSTITUTIONS ON WALL STREET IT ISN'T UNDULY HARSH SAID AARON MARCU WHO REPRESENTED JOHN GUTFREUND IN THE SALOMON CASE MR MARCU SAID HE WAS SURPRISED THAT NEITHER MR JOSEPH NOR MR KANTOR WERE FINED FOR FAILING TO SUPERVISE MR MILKEN HE SAID THE SEC FOUGHT HARD IN THE SALOMON CASE WHICH INCLUDED A 100000 FINE AGAINST MR GUTFREUND TO ESTABLISH A PRECEDENT FOR FINES IN FAILURETOSUPERVISE PROCEEDINGS MR JOSEPH CURRENTLY OVERSEES THE 11 BILLION DBL LIQUIDATING TRUST INC WHICH WAS CREATED THROUGH DREXEL'S BANKRUPTCYCOURT PROCEEDINGS TO LIQUIDATE SOME THE DEFUNCT COMPANY'S ASSETS HE SAID HE WANTS TO WORK AS A INVESTMENT BANKER DOING DEALS ONCE HIS DREXELRELATED DUTIES ARE FINISHED MR KANTOR'S LAWYER DAVID ZORNOW SAID HIS CLIENT WANTED TO PUT THE DREXEL MATTERS BEHIND HIM HE HAS A LIMITED NUMBER OF YEARS LEFT IN THE INDUSTRY AND HE WANTS TO LOOK FORWARD MR ZORNOW SAID ADDING THAT MR KANTOR IS NOW WORKING FOR BARINGTON CAPITAL GROUP LTD A NEW YORK BROKERDEALER 9305210004 930521 BUSINESS BRIEF BTR PLC CHAIRMAN SAYS BUSINESS IN '93 SEEMS TO BE MORE PROMISING THE CHAIRMAN OF UK INDUSTRIAL CONGLOMERATE BTR PLC SAID THE COMPANY'S BUSINESS FOR THE FIRST FEW MONTHS OF THIS YEAR HAS BEEN A LITTLE MORE PROMISING THAN FOR SOME TIME SIR OWEN GREEN SPEAKING AT THE COMPANY'S ANNUAL MEETING SAID BRITAIN'S WITHDRAWAL FROM THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM IN SEPTEMBER CONTRIBUTED TO AN ENCOURAGING IMPROVEMENT OVER THE SIMILAR PERIOD LAST YEAR HE WARNED HOWEVER THERE IS A PERSISTENT FEELING THAT THE APPEARANCES OF THE RECOVERING ECONOMICS MAY MASK AN UNDERLYING FRAGILITY IN MARCH BTR SAID ITS PRETAX PROFIT ROSE 18 IN 1992 DUE TO BOTH ITS 1991 ACQUISITION OF AEROSPACE COMPANY HAWKER SIDDELEY GROUP PLC AND COSTREDUCING MEASURES INCLUDING SOME 8600 JOB CUTS SIR OWEN SAID THE COMPANY HAS SEEN SALES GROWTH TO SOME DEGREE IN THE US AUSTRALIA AND THE UK BUT MAINLAND EUROPE IS FALTERING 9305210002 930521 LAW LEGAL BEAT CALIFORNIA COURT BACKS SURROGATE MOTHER PACTS BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL THE CALIFORNIA SUPREME COURT BECAME THE FIRST STATE HIGH COURT TO ENDORSE SURROGACY ARRANGEMENTS BY UPHOLDING A CONTRACT BETWEEN A WOMAN AND THE COUPLE WHO PAID HER TO CARRY THEIR TESTTUBE BABY THE LONGAWAITED RULING CAME IN A CASE WHERE THERE WAS NO GENETIC CONNECTION BETWEEN THE SURROGATE AND THE INFANT SHE BORE AND WANTED TO KEEP THE CASE CONFRONTED CALIFORNIA'S JUSTICES WITH A CLASH BETWEEN A SENSE OF THE IMPORTANCE OF THE BIOLOGICAL LINK AND A LEGISLATIVE TRADITION AGAINST PAYING FOR CHILDREN THE RULING IS EXPECTED TO HAVE FARREACHING IMPACT IN THE MURKY FIELD OF REPRODUCTIVE TECHNOLOGY LEGISLATURES IN AT LEAST 18 STATES INCLUDING NEW YORK HAVE BARRED OR RESTRICTED COMMERCIAL SURROGATE BIRTHS YESTERDAY'S RULING BY THE INFLUENTIAL CALIFORNIA COURT IS LIKELY TO BE CLOSELY STUDIED BY THE MAJORITY OF STATES THAT HAVEN'T YET DEALT WITH THE ISSUE MOST OF THE STATE LAWS ADDRESSING SURROGACY WERE DRAFTED IN THE WAKE OF THE FAMOUS BABY M CASE IN NEW JERSEY WHICH INVOLVED A SURROGATE MOTHER HIRED BY A COUPLE TO CONCEIVE A CHILD WITH HER OWN EGG AND THE HUSBAND'S SPERM THE NEW JERSEY SUPREME COURT IN 1988 DECLARED SURROGACY CONTRACTS INVALID AND AGAINST PUBLIC POLICY LIKENING THEM TO BABY SELLING THE SURROGATE MOTHER IN THAT CASE NOW HAS VISITATION RIGHTS NO OTHER STATE HIGH COURTS HAVE DIRECTLY RULED ON THE ISSUE ACCORDING TO LAWYERS IN REACHING THEIR 61 DECISION CALIFORNIA'S JUSTICES ADOPTED A NOVEL LEGAL THEORY THAT PEOPLE'S INTENTIONS SHOULD PLAY A KEY ROLE IN DECIDING WHOM THE LAW RECOGNIZES AS PARENTS ALTHOUGH LAW TRADITIONALLY RECOGNIZES BOTH GENETIC CONSANGUINITY AND GIVING BIRTH AS A MEANS OF ESTABLISHING A MOTHER AND CHILD RELATIONSHIP WHEN THE TWO MEANS DO NOT COINCIDE IN ONE WOMAN SHE WHO INTENDED TO PROCREATE THE CHILD THAT IS SHE WHO INTENDED TO BRING ABOUT THE BIRTH OF A CHILD THAT SHE INTENDED TO RAISE AS HER OWN IS THE NATURAL MOTHER WROTE JUSTICE EDWARD PANELLI IN A 28PAGE MAJORITY OPINION LEGAL COMMENTATORS SAID THE THEORY WOULD PROVIDE A GUIDELINE FOR COURTS AND LEGISLATURES IN CIRCUMSTANCES WHEN REPRODUCTIVE TECHNOLOGY MAKES MOTHERHOOD AMBIGUOUS BASICALLY THE IDEA IS THAT NATURE DOESN'T GIVE US THE ANSWER ANYMORE SAID PROFESSOR MARJORIE SHULTZ OF THE LAW SCHOOL AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY WHO WROTE A 1990 LAW REVIEW ARTICLE ADVOCATING THE INTENT STANDARD ROBERT WALMSLEY ATTORNEY FOR THE TUSTIN CALIF COUPLE MARK AND CRISPINA CALVERT SAID THE CONTRACT HIS CLIENTS SIGNED DEMONSTRATES THEIR INTENT TO KEEP THE CHILD THEY NAMED CHRISTOPHER MICHAEL NOW TWO YEARS OLD RICHARD GILBERT A LAWYER FOR SURROGATE ANNA JOHNSON SAID HE PLANNED TO APPEAL THE CASE TO THE US SUPREME COURT HIS CLIENT THE BIRTH MOTHER HAD THE BETTER CASE AND THE EGG DONOR HAD THE WEAKER CASE BECAUSE SHE'S NEVER BEEN PREGNANT AND NEVER GIVEN BIRTH MR GILBERT SAID HE DERIDED SURROGACY CONTRACTS AS A BABY SELLING SCHEME AND CRITICIZED THE COURT'S REASONING IF YOU SAY THE ISSUE IS INTENT THEN WHAT HAPPENS WHEN THERE'S AN UNINTENDED PREGNANCY DOES THE CHILD HAVE NO PARENTS THERE HAVE BEEN THOUSANDS OF SURROGATE BIRTHS SINCE THE EARLY 1980S WHEN THE TECHNOLOGY BECAME GENERALLY AVAILABLE A VERITABLE COTTAGE INDUSTRY OF PROFESSIONAL BABY BROKERS WHO CONNECT CHILDLESS COUPLES WITH WILLING SURROGATES FOR A FEE HAS SPRUNG UP THE CALIFORNIA RULING IS LIKELY TO ENCOURAGE THE PRACTICE RALPH FAGEN CODIRECTOR OF THE CENTER FOR SURROGATE PARENTING A PRIVATE FIRM IN BEVERLY HILLS CALIF SAID THE COURT'S DECISION WILL GIVE TREMENDOUS PEACE OF MIND TO PEOPLE WHO ARE CONTEMPLATING A SURROGATE RELATIONSHIP OR ALREADY HAVE CHILDREN AS A RESULT OF SURROGACY THE CENTER HAS ARRANGED SOME 300 SURROGATE BIRTHS SINCE IT OPENED IN 1980 HE SAID IN REACHING ITS DECISION THE CALIFORNIA HIGH COURT BRUSHED ASIDE CONCERNS THAT ALLOWING COMMERCIAL SURROGACY WOULD INVITE EXPLOITATION OF POOR WOMEN AS SOME LEGAL SCHOLARS HAVE ARGUED JUSTICE PANELLI WROTE THAT THERE'S NO PROOF THAT THE CONTRACTS TAKE ADVANTAGE OF POOR WOMEN TO ANY GREATER DEGREE THAN ECONOMIC NECESSITY IN GENERAL EXPLOITS THEM BY INDUCING THEM TO ACCEPT LOWERPAID OR OTHERWISE UNDESIRABLE EMPLOYMENT THE COURT'S ONLY WOMAN JUSTICE JOYCE KENNARD WAS THE LONE DISSENTER A PREGNANT WOMAN IS MORE THAN A MERE CONTAINER OR BREEDING ANIMAL SHE IS A CONSCIOUS AGENT OF CREATION NO LESS THAN THE GENETIC MOTHER JUSTICE KENNARD WROTE SHE SAID SHE WOULD HAVE RECOGNIZED BOTH WOMEN'S LEGAL CLAIMS THEN AWARDED CUSTODY BASED ON THE BEST INTERESTS OF THE CHILD RATHER THAN THE INTENT OF THE PARENTS UNLESS THE STATE LEGISLATURE APPROVES OTHER RULES A BILL THAT WOULD HAVE ALLOWED REGULATED SURROGACY IN CALIFORNIA WAS VETOED BY GOV PETE WILSON LAST YEAR THE CASE AROSE AFTER THE CALVERTS HIRED MS JOHNSON A SINGLE MOTHER TO GIVE BIRTH TO THEIR BABY BECAUSE MS CALVERT HAD UNDERGONE A HYSTERECTOMY MS JOHNSON AGREED TO BE PAID 10000 AND GIVE UP THE CHILD BUT SEVERAL MONTHS INTO HER PREGNANCY MS JOHNSON SAID SHE HAD BONDED WITH THE FETUS AND SUED TO BE LEGALLY RECOGNIZED AS A PARENT A TRIAL COURT IN SANTA ANA CALIF RULED IN 1990 THAT THE COUPLE COULD KEEP THE BABY SUPERIOR COURT JUDGE RICHARD PARSLOW COMPARED THE CONTRACT BETWEEN THE CALVERTS AND MS JOHNSON TO A COMMON FOSTERCARE ARRANGEMENT AT THE END OF WHICH A FOSTER MOTHER MUST GIVE UP THE CHILD DESPITE ANY EMOTIONAL ATTACHMENTS SHE HAS DEVELOPED AN APPEALS COURT LATER AGREED DURING THE TRIAL THE CALVERTS ARGUED THAT GENES ARE ESSENTIAL TO IDENTITY THEY ALSO CALLED MS JOHNSON'S MOTIVES INTO QUESTION CLAIMING THAT SHE WAS DRIVEN MORE BY HUNGER FOR PUBLICITY THAN BY LOVE OF THE CHILD A JURY AWARDED 23 MILLION IN DAMAGES IN APPARENTLY THE FIRST VERDICT UNDER A FLORIDA LAW ALLOWING PARENTS TO SUE OVER THE WRONGFUL DEATH OF AN ADULT CHILD MOST STATES BAR PARENTS FROM BRINGING WRONGFULDEATH SUITS IN CASES INVOLVING ADULT CHILDREN FLORIDA CHANGED ITS LAW IN OCTOBER 1990 TO ALLOW PARENTS TO SUE NO MATTER WHAT THE AGE OF THE DECEASED CHILD THE JURY VERDICT IN BROWARD COUNTY CIRCUIT COURT CAME IN THE CASE OF A 33YEAROLD MAN SCOTT BORENSTEIN WHO DIED IN APRIL 1991 IN A MOTORCYCLE ACCIDENT THE PARENTS SUED THE DRIVER OF THE MOTORCYCLE AS WELL AS THE PALMETTO KAWASAKISUZUKI DEALERSHIP WHERE THE MOTORCYCLE'S TIRES ALLEGEDLY HAD BEEN CHECKED THE SON WAS A PASSENGER ON THE MOTORCYCLE WHICH CRASHED AFTER A TIRE BLEW OUT THE JURY FOUND THE DEALERSHIP 70 AT FAULT AND THE DRIVER 30 AT FAULT BOTH DEFENDANTS ARE COVERED BY INSURANCE SAID JOHN MCCLURE AN ATTORNEY AT MIAMI LAW FIRM ANGONES HUNTER MCCLURE LYNCH & WILLIAMS WHO REPRESENTED THE DEALERSHIP MR MCCLURE SAID THE DEALERSHIP WILL ASK THE TRIAL JUDGE FOR A NEW TRIAL HE SAID HIS CLIENT MAINTAINS THAT WHEN THE MOTORCYCLE'S TIRE WAS EXAMINED BEFORE THE ACCIDENT IT SHOWED NO SIGNS OF WEAR AS ALLEGED IN THE PARENTS' LAWSUIT THE ATTORNEY FOR THE DRIVER COULDN'T BE REACHED BOTH MR MCCLURE AND ROBERT W KELLEY ATTORNEY FOR THE PARENTS SAID THEY WERE UNAWARE OF ANY OTHER VERDICTS UNDER THE NEW FLORIDA LAW MR KELLEY OF THE LAW OFFICE OF SHELDON J SCHLESINGER FORT LAUDERDALE SAID THAT WHILE SUCH VERDICTS MAY BE RARE IT SEEMS TO ME THAT PARENTS LOVE THEIR CHILDREN NO MATTER HOW OLD THEY ARE WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9305210001 930521 COMMODITIES OIL FUTURES RALLY AFTER PROLONGED WEAKNESS AS JUNE CONTRACT EXPIRES WITH RISE TO 1954 BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL WORLD OIL PRICES REBOUNDED IN A TECHNICALLY DRIVEN MARKET IN LONDON NORTH SEA BRENT BLEND CRUDE FUTURES ENDED THE DAY 19 CENTS TO 26 CENTS A BARREL HIGHER IN NEW YORK WHERE THE SPOTMONTH CRUDE CONTRACT FELL AS LOW AS 1895 A BARREL AT ONE POINT A LATE RALLY DROVE IT ABOVE 20 BRIEFLY BEFORE THE CLOSE OF TRADING BY THE END OF TRADING ON THE NEW YORK MERCANTILE EXCHANGE LIGHT LOWSULFUR CRUDE FOR JUNE DELIVERY HAD SETTLED AT 1954 A BARREL UP 39 CENTS FOR THE DAY PRICES ALSO ADVANCED MEANWHILE IN US OIL FIELDS WHERE SOME REFINERS RAISED THEIR POSTINGS FOR WEST TEXAS INTERMEDIATE THE BENCHMARK CRUDE BY AS MUCH AS 50 CENTS A BARREL THERE WAS LITTLE NEWS OF A FUNDAMENTAL NATURE TO AFFECT OIL PRICES TRADERS SAID THE MARKET ALREADY HAS DISCOUNTED MUCH OF THE NEWS EXPECTED FROM NEXT MONTH'S MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES BUT POLITICAL TURMOIL IN VENEZUELA WHERE THE PRESIDENT FACES TRIAL ON CORRUPTION CHARGES MAY HAVE SPURRED SOME CRUDE OIL BUYING POSSIBLY THE HEATING UP OF TENSIONS IN VENEZUELA GAVE THE MARKET SOME UNDERLYING SUPPORT BUT MOST RATIONAL TRADERS REALIZE THAT THE POSSIBLE IMPEACHMENT OF CARLOS ANDRES PEREZ IS NOT GOING TO AFFECT VENEZUELAN OIL PRODUCTION SAID THOMAS BLAKESLEE AN ENERGY ANALYST WITH BRODY WHITE & CO A NEW YORK COMMODITY BROKERAGE FIRM A BIGGER FACTOR IN YESTERDAY'S RALLY AFTER A RECENT PROLONGED WEAKNESS IN THE OIL MARKET APPEARED TO BE THE EXPIRATION OF THE JUNE CRUDE CONTRACT THAT TRIGGERED VOLATILITY AS WELL AS HEAVY TRADING THE JULY CRUDE CONTRACT ON THE NEW YORK MERCANTILE EXCHANGE ALSO WAS UP RISING 23 CENTS TO 1984 A BARREL CRUDE SIMPLY COULDN'T REMAIN UNDER 19 FOR VERY LONG SAID MR BLAKESLEE BUT HE SAID HE WOULDN'T BE SURPRISED TO SEE PRICES MOVE LOWER AGAIN AS EARLY AS TODAY IN OTHER COMMODITY MARKETS PRECIOUS METALS PRECIOUS METALS PRICES ROSE IN A RELATIVELY QUIET TRADING SESSION RECENT RALLIES IN THE PRICES OF GOLD AND OTHER PRECIOUS METALS HAVE ENERGIZED TRADING AT NEW YORK'S COMMODITY EXCHANGE AT THE COMEX TRADERS GOT A BREAK YESTERDAY AFTER WEDNESDAY'S WILD SESSION WHICH FEATURED VOLUME OF NEARLY 100000 GOLD FUTURES CONTRACTS PLATINUM WAS THE BIGGEST PRICE GAINER YESTERDAY WITH THE JULY CONTRACT RISING 470 TO 39050 AN OUNCE ANALYSTS SAID MOST OF THE STRENGTH IN THE PLATINUM MARKET WAS THE RESULT OF BUYING BY JAPANESE INVESTORS GOLD FOR JUNE DELIVERY ADVANCED 50 CENTS TO 37470 AN OUNCE LIVESTOCK AND MEATS HOG AND PORKBELLY FUTURES PRICES SOARED ON THE DECLINING SLAUGHTER OF HOGS THE US AGRICULTURE DEPARTMENT IS PREDICTING THAT HOG SLAUGHTER ACROSS THE COUNTRY WILL RISE SUBSTANTIALLY THIS YEAR AS A RESULT PRICES IN THE CHICAGO MERCANTILE EXCHANGE'S LIVESTOCK PITS HAVE BEEN HYPERSENSITIVE TO ANY SUGGESTION THAT SLAUGHTER IS RISING OR FALLING LAST WEEK'S SLAUGHTER FIGURES WERE ONLY ABOUT 1 HIGHER THAN THE SAME WEEK A YEAR EARLIER ON THAT NEWS PRICES ROSE ON THE CASH MARKET FOR HOGS SO FAR THIS WEEK ONLY ABOUT 1290000 HEAD OF HOGS HAVE BEEN SLAUGHTERED ACTUALLY DOWN FROM 13 MILLION HEAD A YEAR AGO PROMPTING A CONTINUED RALLY ON THE CASH MARKET THIS WEEK THE FUTURES MARKET HAS HAD LITTLE CHOICE BUT TO RALLY ALONG WITH IT SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS CONTINUED STRENGTH IN THE CASH MARKET IS DRIVING FUTURES PRICES HIGHER IN BOTH THE HOGS AND THE BELLIES YESTERDAY HOGS FOR JUNE DELIVERY ROSE 122 CENTS TO 5327 CENTS A POUND WHILE JULY PORK BELLIES WERE UP 177 CENTS TO 4475 CENTS A POUND 9305210099 930420 LEISURE & ARTS NEW GERSHWIN BIOGRAPHY HITS A SOUR NOTE BY LAURIE WINER JOAN PEYSER'S NEW BIOGRAPHY OF GEORGE GERSHWIN IS RAISING EYEBROWS AND HACKLES IN THE TIGHT LITTLE WORLD OF SCHOLARS GERSHWIN HEIRS AND FAMILY RETAINERS WHO GUARD THE CONSIDERABLE CAPITAL REAL AND INTANGIBLE OF THE COMPOSER'S MUSICAL AND PERSONAL REPUTATION THE MEMORY OF ALL THAT WILL BE PUBLISHED EARLY NEXT MONTH BY SIMON & SCHUSTER BUT PREVIOUS GERSHWIN BIOGRAPHERS SUCH AS ROBERT KIMBALL DEENA ROSENBERG AND EDWARD JABLONSKI ALONG WITH REPRESENTATIVES OF THE GERSHWIN ESTATE ARE ALREADY QUESTIONING THE VALIDITY OF FACTS OR INTERPRETATION ON VIRTUALLY EVERY PAGE THE AUTHOR CALLS THIS REACTION PART OF A HUGE COVERUP YOU DON'T HAVE TO BE A GERSHWINOLOGIST TO SEE THAT MS PEYSER IS SLOPPY WITH FACTS EVEN THE CASUAL READER WILL NOTICE THE LASTKNOWN PHOTOGRAPH OF GERSHWIN TAKEN JUST BEFORE HIS DEATH ON JULY 11 1937 APPEARS ON THE SAME PAGE WITH A DRAWING SAID TO REPRESENT THE HELMET HE BEGAN WEARING IN APRIL 1939 TO SOOTHE HEADACHES CAUSED BY HIS FATAL BRAIN TUMOR ON PAGE 113 THE COMPOSER'S BROTHER AND LYRICIST IRA IS COURTING HIS WIFETOBE LEONORE IN 1925 PAGE 116 FINDS THE COUPLE MEETING IN 1926 ERNST KRENEK'S JAZZ OPERA JONNY SPIELT AUF HAS ITS DEBUT IN 1927 PAGE 126 GEORGE ATTENDS THAT DEBUT IN 1928 PAGE 160 GERSHWIN'S ROSALIE IS A HIT ON PAGE 142 LATER IT IS ONE OF THE LAST FOUR SHOWS THAT EITHER ABORTED OR FAILED IT WAS A HIT AND WAS NOT AMONG THE LAST FOUR GERSHWIN SHOWS GERSHWIN'S OPERA BLUE MONDAY IS CALLED BLUE MONDAY BLUES A SONG WITHIN THE OPERA AND THE SONG THEY ALL LAUGHED BECOMES THE LAST LAUGH MS PEYSER CONTENDS THAT IRA GERSHWIN'S LYRICS FOR THEY CAN'T TAKE THAT AWAY FROM ME CAPTURED WHAT BROTHER GEORGE FELT FOR PAULETTE GODDARD BUT THE SONG WAS COPYRIGHTED IN 1936 AND GEORGE MET GODDARD IN 1937 COLE PORTER IS DESCRIBED AS THE EXPATRIATE WHO HAD WRITTEN NIGHT AND DAY' IN 1928 IN FACT HE WROTE IT FOR THE GAY DIVORCEE IN 1932 MS PEYSER ASSERTS THAT THERE IS NO EVIDENCE AARON COPLAND EVER DISCUSSED GERSHWIN WHILE GERSHWIN WAS ALIVE IN FACT HIS 1927 NEW SCHOOL LECTURE ON GERSHWIN IS IN THE ISAAC GOLDBERG COLLECTION AT HARVARD UNIVERSITY FINANCIAL FIGURES GET ESPECIALLY MISTREATED THE AUTHOR STATES THAT WARNER MUSIC PAID 200 MILLION FOR RIGHTS TO THE GERSHWIN SONG CATALOG IN 1990 ACCORDING TO LESLIE E BIDER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WARNER/CHAPPELL MUSIC INC THAT FIGURE IS INCORRECT BY MORE THAN 190 MILLION HE EXPLAINS THAT THE COMPANY PAID 250 MILLION IN 1987 FOR A HUGE CACHE OF AMERICAN SONGS ABOUT 400000 COPYRIGHTS IN ALL OF WHICH GERSHWIN MATERIAL CONSTITUTED ONLY ABOUT 1000 COPYRIGHTS IT GETS WORSE RELYING ON THIRDHAND INFORMATION SHE QUOTES A TELEPHONE CONVERSATION IN WHICH PRODUCER BEN BAGLEY REVEALED THAT THE NOVELIST FANNIE HURST ONCE TOLD HIM THAT GERSHWIN'S FRIEND KAY SWIFT SUBLET AN APARTMENT IN WHICH SHE WOULD TIE HIM UP THEN HANG HIM FROM THE CEILING AND WHIP HIM EVERYONE IN THE BUILDING COMPLAINED AT THE TERRIBLE SOUNDS COMING FROM THEIR PLACE A TENANT'S COMMITTEE GOT TOGETHER AND SAW THAT THEY WERE PUT OUT MS PEYSER CONCEDES THAT FANNIE HURST WAS QUITE CAPABLE OF IMAGINING SUCH INTRIGUING SCENARIOS STILL THERE WAS ENOUGH OF THE MASOCHIST IN GEORGE WITH HIS ATTRACTION TO POWERFUL DENYING MEN AND WOMEN TO SUGGEST THERE MAY BE SOME ELEMENT OF TRUTH IN WHAT FANNIE HURST IS REPORTED TO HAVE SAID THE MOST SENSATIONAL CHARGE IN THIS COMPLETELY UNFOOTNOTED WORK IS THAT GERSHWIN FATHERED AN ILLEGITIMATE SON ALBERT SCHNEIDER WHO CALLS HIMSELF ALAN GERSHWIN FIRST CLAIMED TO BE GEORGE'S SON IN THE LATE 1950S IN CONFIDENTIAL MAGAZINE THE TABLOID PRINTED A PHOTOGRAPH WHICH MS PEYSER REPRINTS SHOWING THE REMARKABLE LIKENESS OF GEORGE AND ALAN'S PROFILES AT AGE 33 TILL NOW THAT HAS BEEN ALAN'S STRONGEST CASE FOR HIS INHERITANCE MS PEYSER DID FIND A NOW DECEASED GERSHWIN VALET WHO SAID HE SAW THE BOY BEING BROUGHT TO VISIT HIS FATHER MOSTLY THOUGH SHE LOOKS OBSESSIVELY AND IRRATIONALLY FOR OTHER PROOF SQUEEZING THE MOST TRIVIAL DETAILS FOR MEANING THAT ISN'T THERE FOR INSTANCE IN 1936 GERSHWIN WRITES IN A LETTER IF THE SONG DOESN'T SELL I WOULD LIKE MY GRANDCHILDREN IF I EVER HAVE ANY TO SEE THE TROUBLE THAT THEIR GRANDDADDY TOOK WITH VERSES MS PEYSER CONCLUDES IF HE DID NOT HAVE A CHILD IN 1936 WHEN HE WAS THIRTYSEVEN HE PROBABLY WOULD NOT HAVE WRITTEN ABOUT GRANDCHILDREN ACCORDING TO MR KIMBALL ARTISTIC ADVISER TO THE GERSHWIN ESTATE ALAN HAS NEVER PRODUCED A SINGLE PAPER OR DOCUMENT LETTER OR MANUSCRIPT FROM THE COMPOSER AMONG THE MANY THAT HE HAS CLAIMED TO HAVE AND THE ESTATE HAS DISBELIEVED HIM ALL ALONG MS PEYSER DOES NOT OFFER ANY DOCUMENTARY PROOF EITHER SHE SEES ALAN NOT AS A GOLD DIGGER OR A PATHETIC MAN SADLY SEEKING AN IDENTITY BUT AS A VICTIM OF GREED THE GERSHWINS WERE BOURGEOIS AND THEY WERE OBSESSED WITH MONEY SHE TOLD ME YOU HAVE TO UNDERSTAND THE POWER OF THE GERSHWIN ESTATE WHICH IS VARIOUSLY ESTIMATED AT OVER A BILLION DOLLARS MICHAEL SUKIN THE ATTORNEY FOR THE GEORGE GERSHWIN FAMILY TRUST PUTS THE FIGURE AT UNDER 50 MILLION ALAN WAS QUOTED THIS YEAR BY THE NEW YORK POST GOSSIP COLUMNIST CINDY ADAMS SAYING THAT EVER SINCE HE WAS YOUNG ATTORNEYS AND PEOPLE IN DARK SUITS HAVE BEEN WARNING HIM TO KEEP OUT OF THE SPOTLIGHT IF I KNOW WHAT'S GOOD FOR ME YES THEY WERE RACKETEERS AND YES I WAS FRIGHTENED OF THEM WHEN ASKED ABOUT THE LIKELIHOOD OF GERSHWINPAID GANGSTERS SENT TO INTIMIDATE A CHILD MS PEYSER REPLIES WHY NOT THERE'S A LOT OF MONEY AT STAKE ALAN TOLD ME THAT DOROTHY KILGALLEN THE COLUMNIST WAS DOING SOME INVESTIGATIVE REPORTING ON THIS WHEN SHE DIED IN A MYSTERIOUS WAY SHE WAS LOOKING INTO THESE CHARGES AND FINDING SOME CREDIBILITY THERE MS PEYSER MAINTAINS THAT A SHOWGIRL WHOSE STAGE NAME WAS MARGARET MANNERS GAVE BIRTH TO GEORGE'S SON ON MAY 18 1926 AND DEPOSITING THE BABY IN HER SISTER'S HOUSEHOLD GOT INTO AN EXTREMELY REVEALING COSTUME AND JOINED THE CAST OF THE GEORGE WHITE SCANDALS A MONTH LATER MS PEYSER SAYS THAT MANNERS WAS NOT WITH THE COMPANY FOR ITS ATLANTIC CITY TRYOUT BUT A JUNE 8 NEW YORK AMERICAN ARTICLE LISTS MANNERS IN THE CAST THAT OPENED THE NIGHT BEFORE IN ATLANTIC CITY THAT WOULD HAVE HER PERFORMING IN FIVE MUSICAL NUMBERS 20 DAYS AFTER GIVING BIRTH TO GERSHWIN'S SON TO DISBELIEVE THAT ACCORDING TO MS PEYSER IS TO BE A DUPE OF THE OFFICIAL GERSHWIN HEIRS WHO HAVE AN OBVIOUS INTEREST IN DISCREDITING ALAN'S STORY THEY HAVE HUNDREDS OF MILLIONS OF DOLLARS AND A BATTERY OF LAWYERS AND THEY PULL THEM OUT EVERY TIME ALAN SAYS I'M GERSHWIN'S SON' AND THEY CRUSH HIM AND I GUESS I'M AGAINST BULLIES THEY HAVE THE MONEY AND THE POWER AND THIS POOR GUY DOESN'T HAVE A TOKEN BUT HIS WALK IS GEORGE'S HIS VOICE HIS HANDS HIS FACE THIS IS ALAN'S ULTIMATE REVENGE ON THAT GODDAMNED FAMILY THIS AND THE MEMORY OF ALL THAT MS WINER IS A FREELANCE WRITER AND CRITIC IN BROOKLYN NY SEE RELATED LETTER LETTERS TO THE EDITOR FAILING MEMORY WSJ MAY 21 1993 9304200109 YY93 MM05 9305210027 930325 HEALTH STUDY USES MRI TO SPOT DISEASE IN VITAL ARTERIES BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL MEDICAL RESEARCHERS SAID THEY HAVE DEVELOPED A NEW WAY TO SPOT BLOCKAGES IN THE HEART'S VITAL CORONARY ARTERIES WITHOUT HAVING TO INSERT A CATHETER INTO THESE TINY BLOOD VESSELS THE METHOD INVOLVES A NOVEL USE OF MAGNETIC RESONANCE IMAGING TECHNOLOGY POPULARLY KNOWN AS AN MRI SCAN TO DETECT THE CORONARY BLOCKAGES THAT CAN LEAD TO HEART ATTACKS THE ACCOMPLISHMENT IS BASED ON A STUDY INVOLVING ONLY 39 PATIENTS BUT IT IS AMONG THE FIRST SUCCESSFUL EFFORTS TO USE NONINVASIVE TECHNIQUES TO INSPECT THE BLOOD VESSELS THAT FEED THE HEART'S MUSCLE RESEARCHERS SAID IT COULD ONE DAY RIVAL CONVENTIONAL CORONARY ANGIOGRAPHY THAT IS PERFORMED MORE THAN ONE MILLION TIMES A YEAR IN THE US TO DIAGNOSE HEART DISEASE IN CONVENTIONAL ANGIOGRAPHY A THIN CATHETER IS THREADED INTO THE CORONARY ARTERIES AND A DYE THAT IS VISIBLE ON XRAYS IS INJECTED TO OUTLINE THE ARTERY AND REVEAL ANY CLOGGING BY DISEASE THIS IS POTENTIALLY AN ENTIRE NEW FIELD OF CARDIAC IMAGING SAID WARREN J MANNING A CARDIOLOGIST AND RADIOLOGIST AT BETH ISRAEL HOSPITAL IN BOSTON HE CALLED IT A MAJOR STEP IN THE DEVELOPMENT OF MRI AS AN IMPORTANT AND POTENTIALLY COSTSAVING TECHNOLOGY IN DIAGNOSING HEART DISEASE DR MANNING IS THE PRINCIPAL AUTHOR OF A STUDY ON THE TECHNIQUE IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE TECHNOLOGICAL HURDLES REMAIN TO BE WORKED OUT ASSUMING THE PROCEDURE'S EFFECTIVENESS IS BORNE OUT IN FURTHER RESEARCH IT IS LIKELY TO BE A FEW YEARS BEFORE THE TECHNIQUE IS ESTABLISHED AND ACCEPTED BY PHYSICIANS AND USED ROUTINELY ON PATIENTS RESEARCHERS SAID BUT IT COULD SOON BE USED FOR INSTANCE TO SCREEN PEOPLE WITHOUT SYMPTOMS WHO BECAUSE OF FAMILY HISTORY OR OTHER FACTORS ARE CONSIDERED AT HIGH RISK FOR DISEASE SUCH PATIENTS WOULDN'T BE CONSIDERED CANDIDATES FOR A CORONARY ANGIOGRAM YET ABOUT 500000 AMERICANS A YEAR SUFFER A HEART ATTACK WITHOUT HAVING ANY SYMPTOMS OF HEART DISEASE YOU'D LIKE TO BE ABLE TO MAKE AN EARLY DIAGNOSIS OF CORONARY HEART DISEASE IN SUCH PATIENTS SAID JOHN DOUGLAS A CARDIOLOGIST AT EMORY UNIVERSITY ATLANTA CURRENTLY THERE ISN'T A NONINVASIVE TOOL AVAILABLE BY TARGETING HIGHRISK PATIENTS IT MIGHT BE POSSIBLE TO DEVISE TREATMENT PROGRAMS THAT WOULD HELP AVOID HEART ATTACKS IN ANY EVENT RESEARCHERS CAUTIONED THAT LIKE OTHER ADVANCES IN MEDICAL TECHNOLOGY USE OF MRI IN HEART DISEASE COULD PROVE EXPENSIVE IF IT'S USED ON TOP OF OTHER COMMONLY USED DIAGNOSTIC PROCEDURES A STRONG DEMAND FOR MRI CORONARY ANGIOGRAPHY WITHOUT AN OFFSETTING REDUCTION IN THE USE OF OTHER TESTS COULD SUBSTANTIALLY INCREASE HEALTHCARE COSTS WARNED EARL P STEINBERG DIRECTOR OF MEDICAL TECHNOLOGY AND PRACTICE ASSESSMENT AT JOHNS HOPKINS MEDICAL INSTITUTIONS BALTIMORE IN AN EDITORIAL ACCOMPANYING THE STUDY CONVENTIONAL ANGIOGRAPHY ALSO CALLED CARDIAC CATHETERIZATION USUALLY COSTS BETWEEN 3500 AND 5000 A PROCEDURE AN MRI CORONARY ANGIOGRAM MIGHT COST BETWEEN 1000 AND 1200 DR MANNING SUGGESTED MRI MIGHT ALSO REPLACE CARDIAC ULTRASOUND AND SOME OTHER TESTS DOCTORS USE TO DETERMINE THE PRESENCE AND EXTENT OF HEART DISEASE INDEED DR MANNING SUGGESTED THAT MRI COULD SAVE MONEY JUST BY REPLACING A COUPLE OF TESTS OTHER THAN ANGIOGRAPHY THE COSTEFFECTIVENESS COMES WHEN YOU SAY I'M GOING TO GET AN MRI INSTEAD OF CARDIAC ULTRASOUND' AND OTHER TESTS DR MANNING SAID RESEARCHERS HAVE LONG THOUGHT MRI COULD PROVIDE AN ALTERNATIVE NONINVASIVE APPROACH TO HEART DISEASE DIAGNOSES BUT MAKING EACH MRI SCAN GENERALLY TAKES SEVERAL MINUTES THE HEART'S RAPID MOTION AS WELL AS A PATIENT'S BREATHING PRODUCES A BLURRED IMAGE THAT REVEALS ONLY LARGESCALE DEFECTS ROBERT EDELMAN DIRECTOR OF MRI AT BETH ISRAEL HOSPITAL DEVELOPED A SOFTWARE PROGRAM TO QUICKEN AN MRI'S IMAGING SPEED TO 15SECOND INTERVALS MOST PATIENTS CAN HOLD THEIR BREATH FOR THAT LONG AND FOR A PORTION OF THAT TIME THE HEART IS RELATIVELY QUIET THE ACTUAL DATA USED TO COMPILE AN IMAGE ARE GATHERED IN A FRACTION OF A SECOND RESEARCHERS TESTED THE NEW TECHNIQUE ON 39 PATIENTS GETTING IMAGES OF NEARLY 150 DIFFERENT CORONARY ARTERIES ALL THE PATIENTS ALSO UNDERWENT CONVENTIONAL ANGIOGRAPHY JUST THREE OF THE MRI IMAGES COULDN'T BE READ BY EXAMINERS RESEARCHERS SAID THE MRI PROCEDURE ACCURATELY DETECTED 90 OF THE SIGNIFICANT BLOCKAGES FOUND BY CONVENTIONAL ANGIOGRAPHY THE IMAGE SHOWS A SOLID WHITE LINE WHERE BLOOD NORMALLY FLOWS DR MANNING SAID AND A DOTTED LINE ALMOST LIKE THE LINES IN THE ROAD WHEN YOU DRIVE WHERE AN ABSENCE OF BLOOD FLOW OR TURBULENCE INDICATES THE PRESENCE OF DISEASE ONE MAJOR LIMITATION IS THAT THE MRI IMAGE DOESN'T REVEAL THE EXTENT OF THE BLOCKAGE IN THE ARTERIES WHETHER A PARTICULAR ARTERY IS SAY 50 NARROWED OR 80 NARROWED IS IMPORTANT TO DOCTORS IN DECIDING WHETHER TO RECOMMEND CORONARY BYPASS SURGERY ANGIOPLASTY OR DRUGS TO TREAT HEART DISEASE DR MANNING SAID IT WILL TAKE SIGNIFICANT ADVANCES IN MRI TECHNOLOGY BEFORE THE RESOLUTION OF MRI IMAGES COMPARES FAVORABLY WITH THOSE OBTAINED BY CATHETERIZATION THE MRI TECHNIQUE WON'T EVER FULLY REPLACE DIAGNOSTIC ANGIOGRAPHY DR MANNING ACKNOWLEDGED BUT HE BELIEVES IT WILL OFFER AN ALTERNATIVE IN MANY CASES I WOULDN'T WANT TO IMPLY FROM THIS ONE STUDY THAT CLINICAL MRI ANGIOGRAPHY IS HERE TODAY HE ADDED BUT IT WILL BE HERE TOMORROW AND TOMORROW HAS COME A GIANT STEP CLOSER TO BEING REALITY JOHNS HOPKINS'S DR STEINBERG SAID IN THE EDITORIAL THAT DRAWING FIRM CONCLUSIONS FROM THE STUDY IS HAZARDOUS BECAUSE THE STUDY WAS SMALL AND IT ISN'T CLEAR THAT THE TECHNIQUE IS EFFECTIVE IN EVALUATING PATIENTS ACROSS A RANGE OF LEVELS OF DISEASE IN ADDITION ITS VALUE IN DIAGNOSING WOMEN WHO HAVE SMALLER ARTERIES IS UNCERTAIN BECAUSE JUST FOUR WOMEN WERE ENROLLED IN THE STUDY SEE RELATED LETTER LETTERS TO THE EDITOR PET SCANS PROVIDE BEST DIAGNOSTIC RESULTS WSJ MAY 21 1993 9303250082 YY93 MM05 9305210003 930309 POLITICS & POLICY AS PRESSURE MOUNTS ON SALLIE MAE IN WASHINGTON THE RICH LOAN AGENCY'S FUTURE IS FAR FROM CLEAR BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CAN SALLIE MAE A CLEVER ENORMOUSLY RICH 21YEAROLD WHO'S BECOME ACCUSTOMED TO A LIFE OF LUXURY AND POWER SURVIVE IN THIS TOWN IF HER FORMER PATRONS COME OUT AGAINST HER NO THIS ISN'T THE PLOT FOR A NEW TELEVISION MINISERIES IT'S THE PLIGHT OF THE STUDENT LOAN MARKETING ASSOCIATION A QUASIGOVERNMENTAL AGENCY WITH 47 BILLION IN ASSETS THAT'S SCRAMBLING TO HEAD OFF A MASSIVE POLITICAL AND ECONOMIC CRISIS BROUGHT ABOUT BY ONE OF PRESIDENT CLINTON'S BUDGET PROPOSALS MR CLINTON IS PROPOSING TO REPLACE THE GOVERNMENT'S GUARANTEEDSTUDENT LOAN PROGRAM WHICH IS AT THE VERY CORE OF SALLIE MAE'S BUSINESS WITH A NEW DIRECTLOAN PROGRAM THAT HE CLAIMS COULD SAVE THE GOVERNMENT 1 BILLION A YEAR SALLIE MAE'S BUSINESS MAY BE BLOOMING IN MANY OTHER FINANCIAL FIELDS INCLUDING SOME THAT HAVE LITTLE TO DO WITH STUDENT LOANS BUT WALL STREET HAS RESPONDED BY TORPEDOING ITS STOCK INVESTORS SPOOKED BY PRESIDENT CLINTON'S SPEECH ON STUDENT LOANS TWO WEEKS AGO HAVE DRIVEN THE STOCK DOWN FROM THE MID70S TO THE HIGH 40S AMID RUMORS THAT THE GOVERNMENT WAS ABOUT TO DO AWAY WITH SALLIE MAE YESTERDAY SALLIE MAE'S STOCK ROSE 2625 TO 53375 IN LATE NEW YORK STOCK EXCHANGE TRADING OTHERS ALSO HAVE PERKS FOR EXAMPLE SALLIE MAE LURED TIMOTHY G GREENE ITS GENERAL COUNSEL FROM HIS FORMER DALLAS LAW FIRM IN 1991 WITH A 500000 LOAN TO BUY A HOUSE HERE THAT HE MUST REPAY AT 63 INTEREST OVER FOUR AND A HALF YEARS THE COMPANY WAS SET UP BY THE GOVERNMENT WITH 25 MILLION IN 1972 TO PROVIDE LIQUIDITY TO THE STUDENT LOAN MARKET AT A TIME WHEN FEW BANKS WOULD TOUCH STUDENT LOANS WITH SALLIE MAE ON THE SCENE LOCAL BANKS COULD MAKE GUARANTEED STUDENT LOANS AND THEN SELL THEM TO SALLIE MAE WHILE THE STUDENTS WERE STILL IN COLLEGE BEFORE THE RISKY REPAYMENT CYCLE BEGINS TODAY SALLIE MAE SELLS SECURITIES TO PRIVATE INVESTORS TO RAISE THE MONEY IT NEEDS AND HOLDS ROUGHLY A THIRD OF ALL GUARANTEED STUDENT LOANS WHILE SALLIE MAE ACTS AS A PRIVATE COMPANY ITS BONDS ARE CONSIDERED TO BE AS GOOD AS BACKED BY THE FEDERAL GOVERNMENT LIKE THOSE OF ITS SIBLINGS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION OR FANNIE MAE AND THE FEDERAL HOME LOAN MORTGAGE ASSOCIATION OR FREDDIE MAC BUT UNLIKE THE FEDERAL GOVERNMENT SALLIE MAE MAKES MONEY LAST YEAR'S NET INCOME WAS 3939 MILLION UP 14 FROM 1991 PAY PACKAGES AT SALLIE MAE ARE HEAVILY LOADED WITH INCENTIVES FOR SUCH PERFORMANCE MR HOUGH NOTES THERE IS FOCUS ON COMPETITIVE SALARIES THAT RETAIN THE CURRENT MANAGEMENT TEAM SEN PAUL SIMON D ILL THE LEAD SPONSOR OF THE DIRECTFUNDING SCHEME BELIEVES WASHINGTON NO LONGER NEEDS SALLIE MAE OR MR HOUGH AND HIS WELLPAID ASSOCIATES HE ARGUES THAT THE CURRENT SYSTEM ALLOWS SALLIE MAE AND COMMERCIAL BANKS WHICH ORIGINATE THE LOANS TO MAKE BIG MONEY WHILE THE US GOVERNMENT HOLDS MOST OF THE RISKS IF THE LOANS GO BELLYUP SPEAKING ON THE SENATE FLOOR MR SIMON POINTED TO SOME OF THE TEENAGERS THAT SERVE THE SENATE AS PAGES I CAN TAKE ALMOST ANY ONE OF THESE PAGES HERE AND MAKE THEM CEO AND THEY CAN MAKE MONEY WHEN YOU HAVE GOVERNMENT GUARANTEED BONDS YOU HAVE A NOLOSE SITUATION MR HOUGH WHO HOLDS DIPLOMAS AND DEGREES FROM PHILLIPS EXETER ACADEMY STANFORD UNIVERSITY AND THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY IS CERTAIN SALLIE MAE WILL LAND ON ITS FEET DESPITE MR CLINTON'S PROPOSAL INTERVIEWED AT SALLIE MAE'S POSH HEADQUARTERS AN OASIS OF FINE WOODWORK THICK CARPETS AND ANTIQUE REPRODUCTIONS IN GEORGETOWN HE DISMISSES ATTACKS ON HIS PERKS A CONGRESSIONAL BUDGET OFFICE REPORT BACKS UP SOME OF MR HOUGH'S CLAIMS NOTING THAT THERE ARE SUBSTANTIAL RISKS IN THE BUSINESS AND THAT SALLIE MAE HAS BEEN MANAGED TO THE HIGHEST STANDARDS OF COMMERCIAL CREDIT THEREBY REDUCING THE FEDERAL GOVERNMENT'S EXPOSURE ON STUDENT LOANS TO AN INSIGNIFICANT LEVEL BASED ON ASSETS SALLIE RANKS AMONG THE NATION'S TOP 100 CORPORATIONS BUT ITS PRIVILEGED STATUS ALLOWS IT TO DO SOME THINGS THEY CAN'T DO IN 1986 FOR EXAMPLE SALLIE MAE SUCCESSFULLY LOBBIED CONGRESS TO ALLOW IT TO GIVE BIRTH TO CONNIE LEE ANOTHER QUASIGOVERNMENT INSTITUTION WHICH INSURES LOANS TO COLLEGE CONSTRUCTION PROJECTS FOR THE LAST SIX YEARS SALLIE MAE HAS ALSO BEEN LENDING MONEY TO OTHER BANKS THAT PROVIDE HOME EQUITY LOANS ON THE RATIONALE THAT THE LOANS ARE OFTEN USED TO PAY COLLEGE TUITION AND IT BUYS AND LEASES RAILROAD CARS AND POWERGENERATION EQUIPMENT AS A WAY TO SHELTER ITS INCOME FROM FEDERAL TAXES WITH ITS SHEER SIZE AND NIMBLE AND WELLPAID MANAGERS SALLIE MAE ISN'T ABOUT TO DISAPPEAR THE CBO HAS ESTIMATED THAT EVEN IF THE GOVERNMENT TERMINATES THE CURRENT STUDENT LOAN PROGRAM SALLIE MAE CAN LIVE OFF THE FAT OF ITS GOVERNMENTBACKED LOAN PORTFOLIO FOR THE NEXT SEVEN TO 10 YEARS MEANWHILE THE CBO REPORT NOTES SALLIE MAE PROBABLY WILL FIND LUCRATIVE MARKET NICHES RELATED TO THE PRIVATE SIDE OF THE STUDENT LOAN BUSINESS SEE RELATED LETTER LETTERS TO THE EDITOR SALLIE MAE HAD MOXIE WSJ MAY 21 1993 9303090107 YY93 MM05 9305200176 930520 INTERNATIONAL FINNISH JOBLESS RATE CLIMBS HELSINKI FINLAND FINLAND'S UNEMPLOYMENT RATE IN APRIL ROSE TO 19 OF THE WORK FORCE FROM 133 A YEAR EARLIER THE LABOR MINISTRY SAID APRIL'S JOBLESS RATE WHICH WAS UNCHANGED FROM MARCH IS A POSTWORLD WAR II HIGH BANKRUPTCIES NUMBERED 7300 LAST YEAR AN INCREASE OF 17 FROM 1991 ACCORDING TO THE CENTRAL STATISTICAL OFFICE 9305200175 930520 BETHLEHEM STEEL UNIT PRICING STEELTON PA BETHLEHEM STEEL CORP'S PENNSYLVANIA STEEL TECHNOLOGIES UNIT SAID IT WILL PRICE RAILROAD RAILS MONTHLY STARTING IN 1994 BECAUSE OF FLUCTUATIONS IN SCRAP STEEL PRICES PREVIOUSLY PRICES WERE DRIVEN BY DEMAND FOR THE FINAL PRODUCT NOT BY PRICES FOR SUPPLIES 9305200174 930520 CANADIAN BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT REPORTED AN AVERAGE YIELD OF 7155 AT AN AUCTION OF 180 BILLION CANADIAN DOLLARS US142 BILLION OF 65 BONDS DUE SEPT 1 1998 THE EQUIVALENT PRICE OF THE AVERAGE YIELD WAS 97160 PROCEEDS WILL BE USED TO REDEEM C895 MILLION OF MATURING GOVERNMENT BONDS AND FOR GENERAL GOVERNMENT PURPOSES 9305200173 930520 WHO'S NEWS KAISER ALUMINUM CORP KAISER ALUMINUM CORP HOUSTON GEORGE T HAYMAKER JR 55YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF ALUMINUM PRODUCTS WAS NAMED A DIRECTOR INCREASING BOARD MEMBERSHIP TO SEVEN 9305200172 930520 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CIT GROUP HOLDINGS INC 150 MILLION OF MEDIUMTERM NOTES DUE MAY 26 1994 PRICED INITIALLY AT PAR TO FLOAT DAILY AT A SPREAD OF 28 PERCENTAGE POINTS BELOW THE PRIME RATE ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WHICH PAYS INTEREST QUARTERLY WILL BE REOFFERED AT VARIOUS PRICES THROUGH LEHMAN BROTHERS THE ISSUE IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP CIT GROUP HOLDINGS IS JOINTLY OWNED BY DAIICHI KANGYO BANK LTD AND CHEMICAL BANKING CORP CONSOLIDATED EDISON CO OF NEW YORK 200 MILLION TWOPART ISSUE OF DEBENTURES WON IN COMPETITIVE BIDDING BY DEALERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 100 MILLION OF FOURYEAR DEBENTURES DUE JULY 31 1997 WAS REOFFERED AT 99914 TO YIELD 5325 THE FIRST PAYMENT IS AUG 1 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 033 PERCENTAGE POINT ABOVE THE FIVEYEAR TREASURY NOTE THE SECOND PART CONSISTING OF 100 MILLION OF FIVEYEAR DEBENTURES DUE OCT 15 1998 WAS REOFFERED AT 99923 TO YIELD 5718 OCT 10 IS THE FIRST PAYMENT DATE THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 033 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P CONSOLIDATED RAIL CORP 250 MILLION OF DEBENTURES DUE MAY 15 2043 PRICED AS 7 7/8S AT 998 TO YIELD 7891 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 087 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FINLAY FINE JEWELRY CORP 135 MILLION OF SENIOR NOTES DUE MAY 1 2003 PRICED AT PAR TO YIELD 10625 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP FINLAY FINE JEWELRY IS A UNIT OF FINLAY ENTERPRISES INC MATTEL INC 100 MILLION OF NOTES DUE MAY 15 2000 PRICED AT PAR TO YIELD 675 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 098 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO MELLON BANK NA 150 MILLION OF SUBORDINATED NOTES DUE JUNE 1 2003 PRICED AS 6 3/4S AT 99133 TO YIELD 6871 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 075 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO MELLON BANK NA IS A UNIT OF MELLON BANK CORP PLACER DOME INC 200 MILLION OF NOTES DUE MAY 15 2003 PRICED AS 7 1/8S AT 99813 TO YIELD 7152 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 105 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC SOUTHTRUST CORP 100 MILLION OF SUBORDINATED NOTES DUE MAY 15 2003 PRICED AS 7S AT 99741 TO YIELD 7036 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 093 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP PETROLEUM GEOSERVICES AS 28 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 2275 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC CALIFORNIA DEPARTMENT OF WATER RESOURCES 535 MILLION WATER SYSTEM REVENUE BONDS APPARENTLY WON BY A MORGAN STANLEY & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 57653 YIELDS RANGE FROM 27 IN 1994 TO 5875 IN 2025 CLEVELAND OHIO 228 MILLION SERIES G OF 1993 WATERWORKSIMPROVEMENT FIRSTMORTGAGE REVENUE REFUNDING BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 35 IN 1995 TO 58 IN 2021 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P KANSAS DEPARTMENT OF TRANSPORTATION 1499 MILLION SERIES 1993A HIGHWAY REVENUE REFUNDING BONDS PRICED BY A LEHMAN BROTHERS GROUP YIELDS RANGE FROM 265 IN 1994 TO 58 IN 2012 THE BONDS ARE EXPECTED TO BE RATED DOUBLEA BY MOODY'S S&P AND FITCH INVESTORS SERVICE INC MARYLAND 278 MILLION 1993 SECOND SERIES GENERAL OBLIGATION BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 51 PROCEEDS FROM THE BOND SALE WILL BE USED FOR BOTH CAPITAL IMPROVEMENTS AND THE REFUNDING OF PREVIOUSLY ISSUED BONDS YIELDS FOR REOFFERED BONDS RANGE FROM 28 IN 1994 TO 52 IN 2005 BOTH MOODY'S AND S&P HAVE RATED THE BONDS TRIPLEA NEW YORK STATE HOUSING FINANCE AGENCY 2335 MILLION 1993 SERIES C SERVICECONTRACTOBLIGATION REFUNDING REVENUE BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 42 IN 1996 TO 618 IN 2020 AND 2021 MOODY'S HAS RATED THE ISSUE BAA1 AND S&P HAS ASSIGNED A TRIPLEB RATING FEDERAL HOME LOAN MORTGAGE CORP 600 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES GOLD 1542 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION STRIPS TRUST 225 OFFERED BY SALOMON BROTHERS THE OFFERING IS BACKED BY FANNIE MAE 9 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 96 FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF STRIPS TRUST 224 MORTGAGE SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING IS BACKED BY SIXMONTH CD ADJUSTABLERATEMORTAGE SECURITIES CLASS 1 REPRESENTS 13 OF THE PRINCIPAL PAYMENTS ON THE CERTIFICATES AND CLASS 2 REPRESENTS 100 OF THE INTEREST PAYMENTS AND 87 OF THE PRINCIPAL PAYMENTS ON THE CERTIFICATES ALLIEDLYONS FINANCIAL SERVICES PLC UK PARENT 200 MILLION OF 6 3/4 SUBORDINATED CONVERTIBLE EUROBONDS DUE JULY 7 2008 AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD BONDS CONVERTIBLE FROM JULY 12 1993 TO JUNE 30 1998 INTO ALLIEDLYONS PLC ORDINARY SHARES AT 622 PENCE A PREMIUM OF 178 ABOVE YESTERDAY MORNING'S MIDMARKET SHARE PRICE OF 528 PENCE CALLABLE FROM JULY 21 1998 AT PAR GUARANTOR ALLIED LYONS PLC FEES 25 POINTS CARDIFF AUTOMOBILE RECEIVABLES NO 2 PLC SPECIALPURPOSE VEHICLE 100 MILLION OF FLOATINGRATE EURONOTES DUE DECEMBER 1997 AT ISSUE PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL NOTES SECURED ON PORTFOLIO OF UK CAR LOANS ORIGINATED BY CHARTERED TRUST SUBSIDIARY OF BANKING GROUP STANDARD CHARTERED PLC INTEREST FLOATS AT 45 BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE FOR STERLING BONDS WILL TRADE INTERCHANGEABLY WITH 185 MILLION OF IDENTICAL OUTSTANDING NOTES LAUNCHED NOVEMBER 1992 AVERAGE LIFE OF NOTES EXPECTED TO BE 342 YEARS CREDIT ENHANCEMENT PROVIDED BY SIMULTANEOUS ISSUE OF 811 MILLION OF JUNIOR MEZZANINE PRIVATELY PLACED NOTES FEES 025 POINT CREDIT COMMERCIAL DE FRANCE FRANCE 500 MILLION FRENCH FRANCS OF REVERSECOUPON FLOATINGRATE EURONOTES DUE JUNE 3 1998 AT ISSUE PRICE 101425 VIA CREDIT COMMERCIAL DE FRANCE REOFFERED AT 999 INTEREST 8 1/4 ANNUAL IN FIRST YEAR THEREAFTER PAID SEMIANNUALLY AT 1875 MINUS THE SIXMONTH PARIS INTERBANK OFFERED RATE FOR FRANCS MULTIPLIED BY TWO SUBJECT TO MINIMUM OF ZERO FEES 1875 POINTS EUROPEAN INVESTMENT BANK SUPRANATIONAL 10 BILLION PORTUGUESE ESCUDOS OF 12 CARAVELA BONDS DUE JUNE 8 1998 AT ISSUE PRICE 1017 VIA BANCO PORTUGUES DE INVESTIMENTO SA YIELD 1198 AT 10008 BREAKEVEN PRICE FOR UNDERWRITERS AFTER DEDUCTING FULL FEES FEES 1625 POINTS KINGDOM OF DENMARK SOVEREIGN 250 MILLION ECU OF 6 3/4 EUROBONDS DUE JUNE 17 1996 AT ISSUE PRICE 1012435 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 100056 TO YIELD 673 ANNUAL FEES 1375 POINTS LANDESBANK HESSENTHURINGEN GIROZENTRALE GERMANY 500 BILLION LIRE OF ZEROCOUPON EUROBONDS DUE JUNE 18 2003 AT ISSUE PRICE 3764 VIA IMI BANK LUXEMBOURG SA YIELD 1064 AT 3639 BREAKEVEN PRICE FOR COMANAGING BANKS AFTER DEDUCTING FULL FEES GUARANTOR STATE OF HESSE AND SPARKASSENUND GIROVERBAND HESSENTHURIGAN FEES 125 POINTS REPUBLIC OF VENEZUELA SOVEREIGN 100 MILLION MARKS OF 10 1/4 EUROBONDS DUE MAY 5 1998 AT ISSUE PRICE 102 VIA COMMERZBANK AG YIELD 1038 ANNUAL AT UNDERWRITER'S BREAKEVEN PRICE AFTER DEDUCTING FEES SPREAD 400 BASIS POINTS ABOVE COMPARABLE GERMAN BUND BONDS WILL TRADE INTERCHANGEABLY FROM JUNE 10 WITH 150 MILLION MARKS OF IDENTICAL NOTES OUTSTANDING LAUNCHED IN APRIL FEES 25 POINTS 9305200171 930520 MATRIX MEDEVA FORM ALLIANCE MENLO PARK CALIF MATRIX PHARMACEUTICAL INC SAID IT AND UK'S MEDEVA PLC FORMED AN ALLIANCE TO COMMERCIALIZE MATRIX'S DERMATOLOGY PRODUCTS UNDER TERMS OF THE ALLIANCE MEDEVA A VACCINE DEVELOPER WILL PAY 10 MILLION OR 15 A SHARE FOR NEWLYISSUED MATRIX COMMON STOCK AND PROVIDE 12 MILLION FOR DEVELOPMENT COSTS MEDEVA WILL DEVELOP AND MARKET IN EUROPE MATRIX'S THERAPEUTIC IMPLANT PRODUCTS USED TO TREAT GENITAL WARTS AND SKIN CANCERS MATRIX A PHARMACEUTICAL COMPANY RETAINS THE PRODUCT'S MANUFACTURING RIGHTS IN THE US AND EUROPE 9305200170 930520 WHO'S NEWS HANNAFORD BROS CO HANNAFORD BROS CO SCARBOROUGH MAINE LAUREL CUTLER VICE CHAIRMAN OF FCB/LEBER KATZ PARTNERS A UNIT OF FOOTE CONE & BELDING COMMUNICATIONS INC WAS ELECTED A DIRECTOR OF THIS GROCERY STORE CHAIN SUCCEEDING FLORENCE PETRLIK WHO RETIRED AT AGE 70 9305200169 930520 WHO'S NEWS CREATIVE BIOMOLECULES INC CREATIVE BIOMOLECULES INC HOPKINTON MASS MARTYN GREENACRE 51 YEARS OLD WAS NAMED A DIRECTOR OF THIS BIOPHARMACEUTICAL CONCERN EXPANDING THE BOARD TO EIGHT MEMBERS HE IS CHAIRMAN AND PRESIDENT OF ZYNAXIS INC A DRUG DELIVERY COMPANY IN MALVERN PA 9305200168 930520 WHO'S NEWS MAXXAM INC MAXXAM INC HOUSTON ROBERT J CRUIKSHANK A 62YEAROLD RETIRED CERTIFIED PUBLIC ACCOUNTANT WAS NAMED TO THE BOARD OF THIS ALUMINUM FOREST PRODUCTS AND REAL ESTATE MANAGEMENT COMPANY INCREASING THE BOARD'S SIZE TO FIVE MEMBERS 9305200167 930520 WHO'S NEWS CS FIRST BOSTON GROUP CS FIRST BOSTON GROUP NEW YORK THOMAS J MONAHAN WAS NAMED HEAD OF THE EQUITY RESEARCH DEPARTMENT OF THE FIRST BOSTON CORP SUBSIDIARY SUCCEEDING ALFRED JACKSON WHO HAD SERVED TEMPORARILY IN THE POSITION MR JACKSON CONTINUES AS HEAD OF NATIONAL SALES MR MONAHAN 51 YEARS OLD JOINED FIRST BOSTON IN 1979 AND CURRENTLY IS A VICE PRESIDENT AND DIRECTOR 9305200166 930520 WHO'S NEWS IDEXX LABORATORIES INC IDEXX LABORATORIES INC WESTBROOK MAINE ERWIN F WORKMAN JR 46YEAROLD EXECUTIVE VICE PRESIDENT OF THIS BIOTECHNOLOGY TESTING CONCERN WAS NAMED TO THE ADDITIONAL POST OF CHIEF OPERATING OFFICER A NEW POSITION JOHN P DECKRO 48 CHIEF FINANCIAL OFFICER WAS NAMED TO THE ADDITIONAL POST OF SENIOR VICE PRESIDENT ALSO A NEW POSITION 9305200165 930520 WHO'S NEWS SHUFFLE MASTER INC SHUFFLE MASTER INC EDEN PRAIRIE MINN THIS MAKER OF AUTOMATIC CARDSHUFFLING SYSTEMS ELECTED THREE NEW DIRECTORS TO ITS BOARD INCREASING ITS SIZE TO SEVEN MEMBERS JOSEPH JOHN LAHTI OWNER OF JL HOLDINGS INC J STEPHEN SCHMIDT FORMER CHAIRMAN OF NORTHERN CITIES BANCORP AND JAMES R TITZE PART OWNER AND SALES MANAGER AT ROGERS FREELS & ASSOCIATES 9305200164 930520 WHO'S NEWS UNION BANK UNION BANK SAN FRANCISCO BLENDA WILSON PRESIDENT OF CALIFORNIA STATE UNIVERSITY NORTHRIDGE 51 YEARS OLD WAS NAMED TO THE BOARD OF THIS BANK BRINGING THE NUMBER OF DIRECTORS TO 18 9305200163 930520 CANADA TRADE SURPLUS NARROWS AS IMPORTS FROM US INCREASE OTTAWA CANADA'S TRADE SURPLUS NARROWED TO 726 MILLION CANADIAN DOLLARS US5725 MILLION IN MARCH PARTLY AS A RESULT OF A STRONG RISE IN IMPORTS FROM THE US STATISTICS CANADA A GOVERNMENT AGENCY SAID THE MARCH SURPLUS WAS THE SMALLEST SINCE THE SURPLUS OF LAST SEPTEMBER WHICH TOTALED C407 MILLION IN FEBRUARY THE SURPLUS TOTALED C112 BILLION EXPORTS ROSE 07 IN MARCH TO C1451 BILLION FROM C1441 BILLION IN FEBRUARY IMPORTS ROSE 37 TO C1378 BILLION FROM C1329 BILLION IN FEBRUARY THE US TOOK 808 OF CANADA'S EXPORTS IN MARCH AND SUPPLIED 73 OF CANADA'S IMPORTS CANADA'S IMPORTS FROM THE US ROSE 51 IN MARCH FROM THE PREVIOUS MONTH IN FEBRUARY THEY ROSE 37 9305200162 930520 WHO'S NEWS MERCANTILE STORES CO MERCANTILE STORES CO FAIRFIELD OHIO JAMES M MCVICKER 46 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS RETAILING COMPANY A VACANT POSITION HE CONTINUES AS CORPORATE TREASURER 9305200161 930520 SOUTHWEST AIRLINES BOOSTS PAYOUT 71 AND SLATES 3FOR2 SPLIT DALLAS SOUTHWEST AIRLINES BOOSTED ITS DIVIDEND 71 AND DECLARED A 3FOR2 STOCK SPLIT THE AIRLINE PROFITABLE FOR 19 CONSECUTIVE YEARS SAID THE INCREASED DIVIDEND REFLECTS EVEN BETTER TIMES FOR SOUTHWEST THE SPLIT AND THE INCREASED DIVIDEND WILL BE DISTRIBUTED JULY 15 TO SHARES OF RECORD JULY 1 THE NUMBER OF COMMON SHARES OUTSTANDING WILL INCREASE 50 AS A RESULT OF THE SPLIT CASH WILL BE PAID IN LIEU OF FRACTIONAL SHARES SOUTHWEST CURRENTLY HAS 926 MILLION COMMON SHARES OUTSTANDING THE QUARTERLY DIVIDEND IS 14 CENTS A SHARE WHICH WILL INCREASE TO 15 CENTS ON A PRESPLIT BASIS POSTSPLIT THE INCREASED DIVIDEND WILL BE ONE CENT A SHARE 9305200160 930520 LCI COMPLETES OFFERING DUBLIN OHIO LCI INTERNATIONAL INC SAID IT RAISED NET PROCEEDS OF 1031 MILLION IN ITS INITIAL PUBLIC OFFERING WHICH IT COMPLETED YESTERDAY THE TELECOMMUNICATIONS CONCERN SAID IT SOLD ABOUT 61 MILLION COMMON SHARES AT A PRICE OF 1825 A SHARE UNDERWRITERS LED BY BEAR STEARNS & CO EXERCISED THEIR OPTION TO PURCHASE 795000 SHARES TO COVER OVERALLOTMENTS THE COMPANY SAID LCI SAID IT WILL USE A SIGNIFICANT AMOUNT OF THE NET PROCEEDS TO RETIRE SENIOR SUBORDINATED DEBT A COMPANY SPOKESMAN SAID THE USE FOR THE REST OF THE PROCEEDS HASN'T BEEN DETERMINED LCI IS A PROVIDER OF VOICE DATA AND VIDEO TRANSMISSION SERVICES TO BUSINESS AND RESIDENTIAL CUSTOMERS 9305200159 930520 INTERNATIONAL MARUBENI'S UZBEKISTAN ACCORD TOKYO MARUBENI CORP SAID IT SIGNED A COMPREHENSIVE COOPERATION AGREEMENT WITH THE STATE OIL AND GAS COMPANY OF UZBEKISTAN IT CALLS FOR CONSTRUCTION OF AN OIL REFINERY AND FOR THE EXPORT OF CRUDE OIL AND PETROLEUM PRODUCTS FROM THE FORMER SOVIET REPUBLIC THE PROJECT FIRST WILL UNDERGO A FEASIBILITY STUDY TO BE COMPLETED IN AUGUST IF FOUND FEASIBLE IT IS EXPECTED TO COST 1 BILLION UNDER THE AGREEMENT WITH UZBEKNEFTEGAS MARUBENI AND CHIYODA CORP OF JAPAN WILL BUILD A REFINERY AT BUKHARA WITH AN ANNUAL CAPACITY OF FIVE MILLION METRIC TONS A METRIC TON IS EQUAL TO 22046 POUNDS THE PACT WILL ALSO CONFER THE RIGHT TO EXPORT 50000 TONS OF OIL PRODUCTS CONDENSATE AND CRUDE TO WESTERN EUROPE 9305200158 930520 NATIONAL GAS & OIL UNIT PACT NEWARK OHIO NATIONAL GAS & OIL CO'S NGO DEVELOPMENT UNIT SAID IT SIGNED A FIVEYEAR CONTRACT TO SUPPLY GAS TO COLUMBIA GAS OF OHIO NATIONAL GAS WHICH HAD 383 MILLION IN REVENUE FOR THE YEAR ENDED DEC 31 1992 SAID IT EXPECTS THE NGO CONTRACT WILL BRING IN CLOSE TO 20 MILLION IN REVENUE OVER THE NEXT FIVE YEARS FOR THE FIRST YEAR OF THE CONTRACT NGO WILL DELIVER ABOUT TWO MILLION CUBIC FEET OF GAS A DAY IN THE SUMMER AND DOUBLE THAT IN THE WINTER IN THE SECOND YEAR DELIVERIES WILL INCREASE TO THREE MILLION CUBIC FEET A DAY IN THE SUMMER AND DOUBLE THAT AMOUNT IN THE WINTER THE GAS WILL COME FROM THE ROSE RUN FORMATION IN OHIO COLUMBIA GAS OF OHIO IS THE LARGEST NATURAL GAS COMPANY IN THE STATE WITH 12 MILLION CUSTOMERS 9305200157 930520 CIBAGEIGY UNIT'S HEADQUARTERS ARDSLEY NY CIBAGEIGY CORP THE US SUBSIDIARY OF SWISS CHEMICAL AND PHARMACEUTICAL CONCERN CIBAGEIGY LTD SAID IT IS LOOKING TO SELL ITS CORPORATE HEADQUARTERS AND MOVE INTO LEASED FACILITIES THE COMPANY HAS HAD ITS US CORPORATE HEADQUARTERS AND RESEARCH FACILITIES ON THE 60ACRE 12BUILDING SITE WHERE IT CURRENTLY EMPLOYS 860 PEOPLE SINCE 1956 A CIBAGEIGY SPOKESMAN SAID THAT SELLING THE SITE AND MOVING INTO LEASED OFFICES WOULD GIVE THE COMPANY MORE FLEXIBILITY IN ITS SPACING NEEDS NO TIMETABLE WAS SET FOR THE SALE 9305200156 930520 EQUITABLE COS MULLS A PUBLIC OFFERING OF DONALDSON LUFKIN INVESTMENT BANK BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EQUITABLE COS IS EXPLORING A PUBLIC OFFERING OF ITS INVESTMENT BANKING UNIT DONALDSON LUFKIN & JENRETTE IN A MOVE THAT COULD RAISE A FURTHER 500 MILLION IN CAPITAL FOR THE ONCETROUBLED INSURER EQUITABLE ONE OF THE COUNTRY'S LARGEST INSURANCE COMPANIES HAS RAISED MORE THAN 2 BILLION OF CAPITAL IN THE PAST YEAR TO OVERCOME CONCERNS ABOUT SOLVENCY THIS LATEST POSSIBLE OFFERING WHICH SURPRISED INDUSTRY ANALYSTS IS SEEN AS AN ATTEMPT BY THE COMPANY TO BECOME A MORE AGGRESSIVE PLAYER IN THE HOTLY COMPETITIVE INSURANCE MARKET BECAUSE OF THE RECENT FAILURES OF SOME LARGE INSURANCE COMPANIES CONSUMERS ARE LOOKING MORE CLOSELY AT THE HEALTH OF INSURERS AND PREFER TO BUY ONLY FROM THE STRONGEST DONALDSON LUFKIN IS WORTH ABOUT 1 BILLION OR TWICE THE VALUE HELD ON EQUITABLE'S BOOKS EQUITABLE CHAIRMAN RICHARD JENRETTE SAID SELLING A PORTION OF THE INVESTMENT BANK TO THE PUBLIC WOULD ALLOW EQUITABLE TO REPORT THE FULL VALUE OF THE UNIT ON ITS FINANCIAL STATEMENTS WITHOUT FORFEITING THE UNIT'S PROFITS A PUBLIC OFFERING WOULD ALSO ALLOW CURRENT MANAGEMENT TO STAY IN PLACE WE THINK DLJ IS WORTH SIGNIFICANTLY MORE THAN ITS VALUE ON EQUITABLE'S BOOKS MR JENRETTE SAID AT EQUITABLE'S ANNUAL MEETING WE ARE LOOKING AT WAYS TO RECOGNIZE THIS VALUE AT SOME POINT A PUBLIC OFFERING MIGHT MAKE SENSE IT'S UNLIKELY THAT EQUITABLE WOULD SELL THE ENTIRE COMPANY ONE REASON IT PROVIDES A LARGE PART OF EQUITABLE'S PROFITS FOR THE FIRST QUARTER EQUITABLE REPORTED ITS FIRST PROFIT AS A PUBLIC COMPANY EARNING 318 MILLION OR 16 CENTS A SHARE EQUITABLE'S INVESTMENTBANKING AND INVESTMENTMANAGEMENT OPERATIONS WHICH INCLUDE DONALDSON LUFKIN EARNED 464 MILLION AFTER TAXES EQUITABLE DOESN'T BREAK OUT PROFIT JUST FOR DONALDSON LUFKIN BUT ACCORDING TO INFORMATION BASED ON PUBLICLY AVAILABLE DOCUMENTS THE UNIT POSTED PRETAX PROFIT LAST YEAR OF 250 MILLION THE SALE IS JUST ONE OF SEVERAL OPTIONS THAT EQUITABLE IS CONSIDERING TO UNLOCK THE VALUE IN DONALDSON LUFKIN ANOTHER OPTION MR JENRETTE SAID WOULD BE TO SELL PART OF THE INVESTMENT BANK TO AN OUTSIDE INVESTOR IN A PRIVATE PLACEMENT EQUITABLE'S LARGEST SHAREHOLDER PARISBASED GROUPE AXA SA SUPPORTS A SALE IT COULD HAPPEN THIS YEAR OR NEXT YEAR OR THE NEXT YEAR SAID CLAUDE BEBEAR CHAIRMAN OF AXA NOBODY KNOWS EQUITABLE WOULDN'T BE THE ONLY COMPANY TAKING AN INVESTMENT BANK PUBLIC AMERICAN EXPRESS CO IS EXPECTED TO TAKE PUBLIC ITS INVESTMENT BANK LEHMAN BROTHERS AFTER IT SELLS ITS SHEARSON BROKERAGE FIRM TO PRIMERICA CORP SEARS ROEBUCK & CO RECENTLY TOOK PUBLIC A COMPANY CALLED DEAN WITTER DISCOVER & CO WHICH INCLUDES THE DEAN WITTER BROKERAGE FIRM EQUITABLE A COMPANY ONCE CONSIDERED A CANDIDATE FOR FAILURE IS IN THE MIDST OF A STUNNING COMEBACK AT THE ANNUAL MEETING MR JENRETTE REITERATED THAT HE WANTS EQUITABLE TO POST A 15 RETURN ON EQUITY BY THE END OF 1995 NOTING THAT EQUITABLE IS SECOND ONLY TO PRUDENTIAL INSURANCE CO OF AMERICA IN ASSETS UNDER MANAGEMENT HE SAID EQUITABLE IS POISED TO BECOME A FINANCIAL SUPERPOWER AFTER EQUITABLE WENT PUBLIC LAST JULY ANALYSTS CONSIDERED DONALDSON LUFKIN A CANDIDATE FOR SALE BUT SPECULATION DIED DOWN AFTER EQUITABLE'S RECENT SALE OF 800 MILLION OF PREFERRED STOCK I ALWAYS THOUGHT OF THE DLJ OPTION AS PRETTY DRASTIC SAID NORTHINGTON PARTNERS ANALYST JAMES RAMENDA THE PREFERRED OFFERING FULFILLED ALL THEIR CAPITAL NEEDS MR JENRETTE SAID EQUITABLE COULD ALSO RAISE CAPITAL BY TAKING PUBLIC ITS EQUITABLE REAL ESTATE INVESTMENT MANAGEMENT INC UNIT WHICH MANAGES 386 MILLION IN PROPERTIES EQUITABLE BOUGHT DONALDSON LUFKIN ALONG WITH ITS ALLIANCE CAPITAL MANAGEMENT SUBSIDIARY FOR ABOUT 460 MILLION IN 1985 IN 1970 DONALDSON LUFKIN BECAME THE FIRST NEW YORK STOCK EXCHANGE MEMBER FIRM TO BE PUBLICLY OWNED 9305200155 930520 FINANCING BUSINESS FIRST COLONY CORP FIRST COLONY CORP LYNCHBURG VA FILED A SHELF REGISTRATION STATEMENT FOR 255 MILLION OF DEBT SECURITIES AND NONCONVERTIBLE PREFERRED STOCK WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY SAID IT INTENDS TO USE THE PROCEEDS FROM ANY SALE OF SECURITIES TO MAKE REPAYMENTS ON ITS 250 MILLION BANK DEBT FIRST COLONY AN INSURANCE CONCERN WENT PUBLIC LAST YEAR IN AN OFFERING BY ITS PARENT ETHYL CORP ETHYL BASED IN RICHMOND VA SOLD 20 AND PLANS TO SPIN OFF TO ITS SHAREHOLDERS THE REMAINING 80 OF FIRST COLONY SOMETIME IN JULY 9305200154 930520 BELL ATLANTIC STENTOR TO DEVELOP NETWORK FOR ADVANCED SERVICES PHILADELPHIA BELL ATLANTIC CORP AND STENTOR AN ALLIANCE OF CANADA'S NINE MAJOR TELEPHONE COMPANIES AGREED IN PRINCIPLE TO RESEARCH PLAN AND DEVELOP ADVANCED INTELLIGENT NETWORK SERVICES THE ADVANCED INTELLIGENT NETWORK ENABLES PHONE COMPANIES AND THEIR CUSTOMERS TO CREATE TEST AND USE NEW REVENUEPRODUCING OR COSTSAVINGS SERVICES QUICKLY STENTOR AND BELL ATLANTIC WILL POOL RESOURCES AND PERSONNEL OVER THE NEXT FIVE YEARS SEPARATELY BELL COMMUNICATIONS RESEARCH CORP THE RESEARCH ARM OF THE SEVEN REGIONAL BELL TELEPHONE COMPANIES LICENSED TO STENTOR THE RIGHT TO USE A SPECIAL SOFTWARE PLATFORM KNOWN AS THE INTEGRATED SERVICES CONTROL POINT ISCP PLATFORM THROUGHOUT THE CANADIAN NETWORK THE COMPANIES SAID THIS IS THE FIRST TIME BELLCORE HAS LICENSED THIS SOFTWARE WHICH IT HOPES WILL BECOME A STANDARD LAWRENCE BABBIO HEAD OF BELL ATLANTIC ENTERPRISES INTERNATIONAL INC SAID SOME OF THE SERVICES ALREADY DEVELOPED INCLUDE ONE THAT AUTOMATICALLY REROUTES CALLS HELPING CUSTOMERS AVOID TELEPHONE OUTAGES IN EMERGENCIES ANOTHER PROVIDES CENTREX SERVICES OVER A WIDE AREA CENTREX SERVICE USES TELEPHONE COMPANY SWITCHING EQUIPMENT TO HANDLE CALLS FOR A BUSINESS INCLUDING ROUTING CALLS FROM ONE EXTENSION TO ANOTHER ONE OF STENTOR'S PARTNERS AGT LTD WHICH OPERATES IN ALBERTA HAS BEEN TESTING A SERVICE THAT PICKS THE DESTINATION OF A CALL BASED ON WHERE IT ORIGINATES DEPENDING ON WHERE A CALL ORIGINATES THE PHONE NETWORK COULD ROUTE IT TO A SPECIFIC STORE MR BABBIO SAID HE OFFERED THE EXAMPLE OF A PIZZA DELIVERY CHAIN OPERATING IN A METROPOLITAN AREA THE PIZZA COMPANY COULD ADVERTISE A SINGLE TELEPHONE NUMBER FOR THE ENTIRE REGION BUT INSTANTLY LINK EACH CALLER TO THE NEIGHBORHOOD STORE 9305200153 930520 LEISURE & ARTS BOOKSHELF BLACK AMERICAN VOICES BY LINDA CHAVEZ RACE HAS BECOME SO POLARIZED AN ISSUE IN RECENT YEARS THAT IT IS NEARLY IMPOSSIBLE TO DISCUSS THE SUBJECT CANDIDLY WITHOUT INVITING VILIFICATION THE TASK IS NO EASIER IF ONE HAPPENS TO BE BLACK AS SHELBY STEELE GLENN LOURY STEPHEN CARTER AND RANDALL KENNEDY CAN ATTEST THERE IS MUCH TALK OF THE IMPORTANCE OF DIVERSITY TODAY BUT THOSE WHO MOST OFTEN INVOKE ITS VIRTUES RARELY MEAN ANYTHING BEYOND ENSURING THE PROPER COLOR SCHEME AT THE TABLE SO LONG AS EACH GROUP IS REPRESENTED IT MATTERS LITTLE THAT THERE BE ANY DIVERSITY OF VIEWS PRESENTED IN THIS ENVIRONMENT GERALD EARLY'S COLLECTION LURE AND LOATHING ESSAYS ON RACE IDENTITY AND THE AMBIVALENCE OF ASSIMILATION ALLEN LANE/PENGUIN 351 PAGES 2350 BY 20 BLACK INTELLECTUALS IS AN ESPECIALLY IMPRESSIVE FEAT MR EARLY KNOWS THE TERRITORY IS TREACHEROUS ALREADY LABELED A MISFIT AS THE NONAFROCENTRIC HEAD OF THE AFRICANAMERICAN STUDIES DEPARTMENT AT WASHINGTON UNIVERSITY IN ST LOUIS MR EARLY PROVOKED OUTRAGE IN SOME BLACK INTELLECTUAL CIRCLES WITH A PIECE HE WROTE FOR HARPER'S MAGAZINE IN DECEMBER THEIR MALCOLM MY PROBLEM IN IT HE VENTURED THE POLITICALLY INCORRECT VIEW THAT BLACKS CANNOT RECAPTURE THEIR LOST AFRICAN PAST AS HE PUT IT OUR STORY IS ONE OF REMAKING OURSELVES AS AMERICANS THE TENSION BETWEEN BEING BLACK AND AMERICAN WHAT WEB DU BOIS CALLED THE DOUBLE CONSCIOUSNESS OF AFRICANAMERICANS IS THE THEME MR EARLY ASKED HIS CONTRIBUTORS TO ADDRESS IN LURE AND LOATHING DESPITE HIS OWN SKEPTICISM ABOUT BLACK NATIONALISM AND AFROCENTRISM MR EARLY MAKES SURE THAT THOSE REPRESENTING THIS VIEWPOINT HAVE A PLACE AT HIS TABLE INDEED THEIR VOICES NEARLY DOMINATE THIS VOLUME IN SHRILLNESS IF NOT IN NUMBER JUST AS THEY DO THE LARGER ARENA OF PUBLICPOLICY DEBATES VIRTUALLY ALL THE WOMEN WHO CONTRIBUTED TO THIS PROJECT THOUGH FEWER THAN HALF THE MEN DEPICT THE WORLD THROUGH A RACIAL PRISM IN WHICH GOOD AND EVIL RELEVANCE AND IRRELEVANCE JUSTICE AND INJUSTICE ARE LITERALLY SEPARATED INTO IMAGES BLACK AND WHITE KRISTIN HUNTER LATTANY AN AUTHOR OF CHILDREN'S BOOKS CHILLINGLY EPITOMIZES THIS RACIALIST VISION IN HER ESSAY OFFTIMING STEPPING TO A DIFFERENT DRUMMER DESCRIBING HER INLAWS' REACTION TO THE DEATH OF A BLACK ASTRONAUT IN THE EXPLOSION OF THE SPACE SHUTTLE CHALLENGER MS LATTANY WRITES THIS MAN ALONE DESERVED OUR MOURNING IF HE HAD NOT BEEN ABOARD PERHAPS A JUBILANT CHORD WOULD HAVE BEEN STRUCK THAT DAY FOR THEN THE ACCIDENT WOULD NOT HAVE CONCERNED US IT WOULD HAVE JUST BEEN WHITE FOLKS REAPING THE CONSEQUENCES OF THEIR FOOLISHNESS THERE IS LITTLE HINT IN MS LATTANY'S ESSAY OF WHERE SUCH CONTEMPTUOUS RAGE COMES FROM THOUGH JUDGING FROM SELECTIONS BY NIKKI GIOVANNI TONI CADE BAMBARA MOLEFI KETE ASANTE AND OTHERS IT IS BROADLY SHARED SURELY MUCH OF IT COMES FROM THE SLIGHTS AND OUTRIGHT VICIOUSNESS THAT HAUNT THE MEMORIES OF MOST BLACKS ESPECIALLY THOSE OLD ENOUGH TO REMEMBER PRIOR TO 1964 STILL THIS SHARED MEMORY OF RACIAL PREJUDICE HAD DIFFERENT EFFECTS ON INDIVIDUAL ESSAYISTS STUNTING SOME WHILE LEAVING OTHERS UNSCATHED EITHER BY SELFPITY OR HATRED THE MOST POWERFUL ESSAYS REFLECT THE AMBIVALENCE OF LIVING IN A WORLD IN WHICH SKIN COLOR STILL MATTERS WHILE OPPORTUNITY IS MORE AMPLY AVAILABLE THAN IT HAS EVER BEEN AS POET ANTHONY WALTON WRITES HERE IN SOME WAYS A BLACK AMERICAN IS A PRISONER WHO CARRIES HIS CELL HIS SKIN AROUND WITH HIM IT IS JUST AS TRUE THAT HE IS THE FREEST BLACK MAN ON THE PLANET MOST ESSAYS DEFY EASY CATEGORIZATION CRITIC STANLEY CROUCH WRITES A BITING CRITIQUE OF THE SCHOOL OF SOCIAL CRITICISM THAT DEFINES ALL BLACKS AS INNOCENT VICTIMS OF WHITE PERFIDY AVARICE AND MALICE MR LOURY'S CONTRIBUTION IS MORE PERSONAL CENTERED ON HIS HOPES FOR HIS SONS AND HIS OWN REALIZATION THAT HE NO LONGER BELIEVES THAT THE CAMARADERIES ENGENDERED AMONG BLACKS BY OUR COLLECTIVE EXPERIENCE OF RACISM CONSTITUTES AN ADEQUATE BASIS FOR ANY PERSON'S SELFDEFINITION HISTORIAN WILSON MOSES ADMITS THAT HIS OWN SENSE OF CULTURAL IDENTIFICATION OWES MORE TO HIS CATHOLIC UPBRINGING THAN ANY AFRICAN ROOTS FICTION WRITER REGINALD MCKNIGHT WRITES POIGNANTLY OF HIS CHILDHOOD IN CONFESSIONS OF A WANNABE NEGRO KENNETH MANNING TELLS OF BLACK SCIENTISTS FRUSTRATED BECAUSE THEY HAVE TO EXPLAIN THE OBVIOUS CHEMISTRY AND PHYSICS ARE ABOUT ATOMS PROTONS AND MOLECULES BIOLOGY IS ABOUT PROTOPLASM AND PROTEINS THESE PHENOMENA KNOW NO COLOR OR RELIGION NO NATIONAL ORIGIN MR EARLY PRESENTS NO ONE PERSPECTIVE AS THE AUTHENTIC BLACK VIEWPOINT AND HIS COLLECTION EFFECTIVELY DEMONSTRATES THAT DIVERSITY WITHIN GROUPS CAN BE AS WIDE AS IT SOMETIMES IS BETWEEN THEM NONETHELESS ONE CAN'T HELP BUT WONDER WHETHER THE CONFLICTING VISIONS OF WHAT IT MEANS TO BE BOTH BLACK AND AMERICAN THAT ARE REPRESENTED WITHIN THIS VOLUME CAN EVER BE RECONCILED HOW CAN THE BELIEF THAT AMERICA IS A SOCIETY BUILT ON THEFT AND BONDAGE A GRISLY SKELETON HER ONLY PRODUCT DEATH BE CONGRUENT WITH THE FAITH THAT RACIAL HARMONY IS ACHIEVABLE AND IF IT CANNOT BE WHAT POINT IS THERE IN CONTINUING TO FIGHT FOR JUSTICE AND EQUALITY BUT PERHAPS THE NIHILISTS WHO SPOUT SUCH RHETORIC DON'T FULLY BELIEVE IT THEMSELVES AT THE VERY LEAST LURE AND LOATHING OFFERS PROOF OF COMPETING VISIONS OF AMERICA AND OF BLACKS' INTEGRAL PLACE IN IT MS CHAVEZ IS DIRECTOR OF THE CENTER FOR THE NEW AMERICAN COMMUNITY AT THE MANHATTAN INSTITUTE 9305200152 930520 TWO REGULATORS DISAGREE ON SENATE BILL TO COMBAT HOMEEQUITY LOAN SCAMS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO TOP GOVERNMENT FINANCIAL REGULATORS ARE SPLIT ON WHETHER SENATE LEGISLATION AIMED AT CRACKING DOWN ON HOMEEQUITY LOAN SCAMS WOULD IMPINGE ON LEGITIMATE MORTGAGE CREDIT TESTIFYING BEFORE THE SENATE BANKING COMMITTEE COMPTROLLER OF THE CURRENCY EUGENE LUDWIG ENDORSED A BILL WRITTEN BY COMMITTEE CHAIRMAN DONALD RIEGLE D MICH AND SEN ALFONSE D'AMATO OF NEW YORK THE PANEL'S RANKING REPUBLICAN I DO NOT BELIEVE THE DISCLOSURE REQUIREMENTS AND RESTRICTIONS ON LOAN TERMS WOULD PREVENT ANY INSTITUTION FROM MAKING MORTGAGES THAT SERVE LEGITIMATE CREDIT NEEDS MR LUDWIG SAID INSTEAD HE SAID IT WOULD DETER LOANS WITH EXCESSIVE INTEREST RATES OR FEES OR REPAYMENT TERMS THAT BORROWERS CAN'T MEET BUT LAWRENCE LINDSEY A MEMBER OF THE FEDERAL RESERVE BOARD URGED THAT THE BILL BE CHANGED TO MAKE ITS REQUIREMENTS LESS RESTRICTIVE WITHOUT A TIGHT FOCUS HE SAID THE FED BELIEVES THE LEGISLATION ENTAILS SUBSTANTIAL RISK TO MANY LEGITIMATE FORMS OF CONSUMER CREDIT THE HOMEEQUITY SCAMS ARE AN OUTGROWTH OF SOCALLED REDLINING THE PRACTICE OF REFUSING TO LEND TO MINORITY OR LOWINCOME PERSONS SOME OTHER LENDERS SEEK OUT SUCH PERSONS AND OFFER THEM HIGHINTEREST LOANS FOR EXAMPLE THAT MAY LEAD TO FORECLOSURES WHEN THE BORROWERS CAN'T MAKE PAYMENTS MR LUDWIG WHO RECENTLY WAS NAMED TO THE COMPTROLLER JOB BY PRESIDENT CLINTON HAS BEGUN TO MOVE VIGOROUSLY TO CURB LENDING DISCRIMINATION HE SAID HIS OFFICE IS TRYING TO DETERMINE TO WHAT EXTENT NATIONAL BANKS MAY BE INDIRECTLY INVOLVED EITHER THROUGH NONBANK SUBSIDIARIES OR BY PURCHASING SUCH LOANS IN FINANCING HOMEEQUITY CREDIT THAT WOULD VIOLATE SOUND CREDIT STANDARDS IF THEY WERE ORIGINATED BY THE BANK THE SENATE LEGISLATION WOULD REQUIRE SPECIAL DISCLOSURES TO PEOPLE WHO RECEIVE HIGHCOST LOANS SUCH AS THOSE WITH HIGH INTEREST RATES OR THOSE THAT CAUSE BORROWERS TO INCUR HEAVY DEBT IN RELATION TO THEIR LOW INCOMES OR THOSE THAT INVOLVE SIZABLE UPFRONT INTEREST POINTS OR FEES SUCH DISCLOSURES WOULD INCLUDE INFORMING BORROWERS THAT THEY COULD LOSE THEIR HOMES IF THEY CAN'T MAKE PAYMENTS THE BILL ALSO WOULD PROHIBIT CERTAIN LOAN TERMS SUCH AS BALLOON PAYMENTS WHICH REQUIRE A LARGE FINAL SUM FROM THE BORROWER WHEN THE REPAYMENT PERIOD ENDS THE MEASURE WOULD COVER ONLY CLOSEDEND HOMEEQUITY LOANS THOSE THAT PROVIDE A LUMPSUM LOAN COMMON TO THE TYPICAL HOMEIMPROVEMENT LOANS PROVIDED IN THE LENDING SCAMS IT WOULDN'T APPLY TO THE OPENEND LINES OF HOMEEQUITY CREDIT USUALLY OFFERED BY LARGE BANKS OR THRIFT INSTITUTIONS REP JOSEPH KENNEDY D MASS CHAIRMAN OF A HOUSE CONSUMER SUBCOMMITTEE IS WORKING ON SIMILAR LEGISLATION WHILE THE FED'S MR LINDSEY CONSIDERED THE RIEGLED'AMATO BILL TO BE TOO RESTRICTIVE SOME CONSUMER GROUPS SAID IT SHOULD BE TOUGHENED MICHELLE MEIER A CONSUMERS UNION LOBBYIST TESTIFIED THAT THE INTERESTRATE TRIGGER FOR CONSUMER DISCLOSURES UNDER THE BILL WHICH CURRENTLY WOULD BE ABOUT 15 OR NEARLY DOUBLE ORDINARY MORTGAGE RATES IS TOO HIGH SHE ARGUED AGAINST AN INTERESTRATE TRIGGER BECAUSE MANY SCAMS CAN BE PULLED OFF AT RATES SET JUST BELOW ANY SPECIFIED TRIGGER LEVEL MS MEIER SAID THE LEGISLATION'S REQUIREMENTS SHOULD APPL TYPES OF HOMEEQUITY LOANS TO PREVENT SCAM ARTISTS FROM SIMPLY SWITCHING FROM LUMPSUM LENDING TO OPENEND CREDIT LINES 9305200151 930520 TECHNOLOGY VITAMIN E LINK IS SEEN IN LOWERING HEARTDISEASE RISK BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON IN TWO LARGE STUDIES HERE RESEARCHERS FOUND THAT TAKING VITAMIN E SUPPLEMENTS FOR AT LEAST TWO YEARS WAS ASSOCIATED WITH ABOUT A 40 REDUCED RISK OF HEART DISEASE IN BOTH MEN AND WOMEN THE STUDIES PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE REPRESENT PERHAPS THE STRONGEST EVIDENCE TO DATE THAT VITAMIN E CAN HELP PREVENT HEART ATTACKS A NUMBER OF PREVIOUS SMALLER STUDIES HAVE INDICATED THAT VITAMIN E AN ANTIOXIDANT BLOCKS EFFECTS OF OXYGENCONTAINING FREE RADICAL MOLECULES IN THE BODY THAT LEAD TO CLOGGED ARTERIES AND HEART ATTACKS THE BOSTON RESEARCHERS STRESSED HOWEVER THAT THEIR FINDINGS SHOW A STATISTICAL CORRELATION RATHER THAN PROVING THAT TAKING VITAMIN E PILLS CAUSES LESS RISK OF HEART DISEASE DIETARY OR OTHER FACTORS THEY DIDN'T MEASURE MIGHT HAVE BIASED THE RESULTS THEY ALSO SAID THAT STUDIES AIMED AT NAILING DOWN A CAUSAL RELATIONSHIP SHOULD BE COMPLETED BEFORE PUBLIC RECOMMENDATIONS ARE MADE ABOUT TAKING VITAMIN E SUPPLEMENTS TO PREVENT HEART DISEASE IN THE LATEST STUDIES RESEARCHERS AT BOSTON'S BRIGHAM AND WOMEN'S HOSPITAL AND HARVARD UNIVERSITY TRACKED DIET VITAMIN INTAKE AND OTHER HEALTH FACTORS AMONG 87245 FEMALE NURSES FOR EIGHT YEARS AND 39910 MALE HEALTH PROFESSIONALS FOR FOUR YEARS AFTER DISCOUNTING FOR THE EFFECTS OF SMOKING AND OTHER HEARTDISEASE RISK FACTORS THEY FOUND THAT WOMEN WHO TOOK VITAMIN E SUPPLEMENTS FOR TWO YEARS OR MORE HAD 46 LESS RISK OF HEART DISEASE THAN DID WOMEN WHO DIDN'T TAKE SUCH SUPPLEMENTS MEN WITH SIMILAR VITAMIN E SUPPLEMENT PATTERNS HAD 37 LESS RISK OF HEART DISEASE UNLIKE MOST VITAMINS VITAMIN E IS DIFFICULT TO GET IN SIZABLE QUANTITIES FROM FOOD ITS MAIN DIETARY SOURCES ARE NUTS VEGETABLE OILS AND OTHER FATTY FOODS SUBJECTS IN THE BOSTON STUDIES WHO TOOK VITAMIN E SUPPLEMENTS CONSUMED 100 OR MORE INTERNATIONAL UNITS OR IUS OF THE VITAMIN DAILY TAKING MUCH HIGHER MEGADOSES WASN'T ASSOCIATED WITH FURTHER REDUCTIONS IN HEARTDISEASE RISK THE US RECOMMENDED DAILY ALLOWANCE OF VITAMIN E IS 30 IUS VITAMIN E PILLS TYPICALLY CONTAIN 100 TO 400 IUS MULTIVITAMINS GENERALLY CONTAIN SMALLER DOSES OF VITAMIN E TYPICALLY ABOUT 30 IUS THE BOSTON RESEARCHERS ALSO FOUND THAT A HIGH INTAKE OF TWO OTHER ANTIOXIDANTS VITAMIN C AND BETA CAROTENE WASN'T GENERALLY ASSOCIATED WITH LOWER RISK OF HEART DISEASE HOWEVER MEN WHO CURRENTLY OR FORMERLY SMOKED AND HAD A HIGH DIETARY INTAKE OF BETA CAROTENE HAD SUBSTANTIALLY LOWER RISK OF HEART DISEASE THAN DID SMOKERS WITH LOW INTAKE OF THE NUTRIENT BETA CAROTENE IS A VITAMIN A PRECURSOR FOUND IN CARROTS BROCCOLI AND OTHER VEGETABLES 9305200150 930520 HEARD ON THE STREET WHICH STOCK PICKING STRATEGIES WORK BEST IN A TURBULENT MARKET BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL IN A MARKET THAT HAS PUNISHED MANY STOCK PICKERS THIS YEAR WHICH STOCKPICKING METHODS ARE WORKING LET'S ASK RICHARD BERNSTEIN ACE NUMBERCRUNCHER AT MERRILL LYNCH OF THE TWO DOZEN METHODS HE TRACKS A FEW ARE WORKING ESPECIALLY WELL THIS YEAR INCLUDING TWO OLD FAVORITES AND A COUPLE OF ODDBALLS ONE VENERABLE TECHNIQUE ENJOYING RENEWED SUCCESS IS PICKING STOCKS WITH LOW P/E RATIOS THAT IS LOW STOCK PRICES COMPARED TO PERSHARE EARNINGS THE TACTIC GOES ALL THE WAY BACK TO BENJAMIN GRAHAM IN THE 1930S AND HAS WORKED WELL EVER SINCE WITH OCCASIONAL LAPSES MR GRAHAM WITH DAVID DODD WAS COAUTHOR OF THE INVESTMENT CLASSIC SECURITY ANALYSIS AN UNUSUALLY LONG AND SEVERE LAPSE HAPPENED IN 1989 AND 1990 BUT LOWP/E INVESTORS HAVE BEEN DOING DANDY SINCE THEN ANOTHER POPULAR METHOD IN USE FOR ABOUT A DECADE IS BUYING STOCKS ON WHICH ANALYSTS ARE RAISING THEIR EARNINGS ESTIMATES THIS TACTIC PRODUCED ROTTEN RESULTS IN THE FIRST HALF OF 1992 BUT IS GENERATING NICE GAINS SO FAR THIS YEAR BESIDES THESE TWO WELLKNOWN TECHNIQUES A COUPLE OF OBSCURE STRATEGIES ARE ALSO DOING WELL THIS YEAR ONE IS WIDE ESTIMATE DISPERSION MEANING THAT ANALYSTS VIOLENTLY DISAGREE ABOUT WHAT A COMPANY'S EARNINGS WILL BE ANOTHER IS BIG VARIATION IN PAST EARNINGS BOTH ARE HALLMARKS OF TURNAROUND CANDIDATES AND OF CYCLICAL STOCKS WHICH HEAVE UP AND DOWN WITH THE ECONOMIC TIDES THAT SUCH STOCKS ARE IN FAVOR SHOWS THAT STOCKMARKET INVESTORS UNLIKE MANY ECONOMISTS ARE FEELING MORE CONFIDENT ABOUT THE ECONOMY AND ARE MORE WILLING TO TAKE RISKS THAN THEY WERE A FEW MONTHS AGO A HANDFUL OF STOCKS EMBODY BOTH OF THESE CHARACTERISTICS THEY HAVE HAD AN ERRATIC EARNINGS HISTORY AND CURRENTLY HAVE WILDLY VARYING ANALYSTS' ESTIMATES THESE INCLUDE ALUMINUM CO OF AMERICA AMAX AMDAHL DEERE INCO NEWMONT MINING AND WELLS FARGO SOME STOCKS WITH ESPECIALLY LOW P/E RATIOS INCLUDE MCDONNELL DOUGLAS MELLON BANK BANKERS TRUST AMERICAN BRANDS AND PHILIP MORRIS SOME THAT SHOW STRONG UPWARD ESTIMATE REVISIONS ARE DATA GENERAL INTEL DSC COMMUNICATIONS NAVISTAR INTERNATIONAL AND COMPAQ COMPUTER THESE COMPANIES ASIDE MR BERNSTEIN SEES A GENERAL TREND WHAT'S HAPPENING NOW IS THAT 'BAD' COMPANIES MAKE GOOD STOCKS HE SAYS THE LAST TIME THAT OCCURRED WAS IN THE MID1980S WHEN STRUGGLING COMPANIES BECAME TAKEOVER BAIT THIS TIME HE SAYS AN ECONOMIC UPTURN WILL HELP COMPANIES THAT HAVE BEEN STRUGGLING TO BREAK EVEN OR TO MAKE A SMALL PROFIT SUCH COMPANIES' EARNINGS WILL RISE FASTER IN PERCENTAGE TERMS THAN COMPANIES WITH STRONGER STEADIER EARNINGS SO MR BERNSTEIN WHO IS MERRILL'S CHIEF QUANTITATIVE ANALYST THINKS CYCLICALS ARE STILL THE BEST BET EVEN THOUGH THEY HAVE MOVED UP A LOT ALREADY IN PARTICULAR HE FAVORS FINANCIAL STOCKS ENERGY STOCKS UGLY TECHNOLOGY STOCKS SUCH AS ESTABLISHED COMPUTER MAKERS THAT DEPEND ON A BUSINESS RECOVERY RATHER THAN NEW INVENTIONS AND CONGLOMERATES THE LOWP/E APPROACH IS THE ONLY ONE THAT HAS DONE WELL BOTH YEARTODATE AND DURING THE PREVIOUS SIX YEARS IT'S THE LONGEST LASTING STOCK SELECTION METHOD AROUND SAYS GRACE MESSNER HEAD OF THE INVESTMENT STRATEGY COMMITTEE AT WILMINGTON TRUST AND IT DESERVES TO BE SHE SAYS BECAUSE ITS UNDERLYING RATIONALE MAKES SENSE LOWP/E INVESTORS BY DEFINITION ARE BUYING UNPOPULAR STOCKS ABOUT WHICH OTHER INVESTORS ARE WORRIED THAT MEANS THEY ARE TAKING ON EXTRA RISK AND ACCORDING TO INVESTMENT THEORY SHOULD BE COMPENSATED FOR THAT RISK MS MESSNER ALSO PREDICTS CONTINUED SUCCESS FOR THE FACTOR THAT RANKS FIFTH ON MR BERNSTEIN'S LIST THIS YEAR HIGH DIVIDEND YIELD WITH INTEREST RATES LOW YIELD IS A SCARCE COMMODITY SHE SAYS AND HIGHYIELD STOCKS HOLD UP BETTER THAN MOST IN MARKET DECLINES A DECLINE SOMETIME THIS YEAR SEEMS LIKELY TO HER IN LIGHT OF TODAY'S HIGH STOCKMARKET VALUATIONS WE'RE HEAVY IN UTILITIES NOW COLLECTING ABOUT 55 IN DIVIDENDS SHE SAYS JOHN BOGLE JR HEAD OF NUMERIC INVESTORS IN BOSTON CONSIDERS HIS FIRM AMONG THE MOST AGGRESSIVE USERS OF ESTIMATE REVISIONS GIVING THAT FACTOR A 50 TO 60 WEIGHT IN STOCKPICKING AMONG HIS FAVORITE STOCKS ARE ADVANCED MICRO DEVICES WHICH WAS BATTERED DOWN BADLY FOR A WHILE BY ITS LEGAL BATTLE WITH INTEL STORAGE TECHNOLOGY WHICH WAS DEPRESSED BY LONG DELAYS IN INTRODUCING A MASSIVE DATA STORAGE PRODUCT CALLED ICEBERG DSC COMMUNICATIONS WHICH MAKES SWITCHING SYSTEMS FOR TELEPHONE COMPANIES AND CHRYSLER WHOSE NEW MODELS HAVE SPARKED A STRING OF UPWARD ESTIMATE REVISIONS BY WALL STREET MELISSA BROWN QUANTITATIVE ANALYST AT PRUDENTIAL SECURITIES SAYS MOST OF THE FACTORS WORKING WELL THIS YEAR ARE ATTRIBUTES OF CYCLICAL STOCKS THE CYCLICALS HAVE ALREADY RISEN SO MUCH SHE SAYS THAT THEIR P/E RATIOS BASED ON ESTIMATED 1994 EARNINGS ARE NEARLY EQUAL TO THOSE OF SOCALLED GROWTH STOCKS OR THOSE WITH A RECORD OF FASTGROWING EARNINGS EVEN SO SHE'D STICK WITH CYCLICALS FOR NOW ONE REASON SHE THINKS INDUSTRIAL PRODUCTION GROWTH WILL BE VERY STRONG IN THE NEXT YEAR OR TWO LOUIS NAVELLIER A MONEY MANAGER IN INCLINE VILLAGE NEV IS BEST KNOWN AS A GROWTHSTOCK MANAGER BUT HE SAYS INVESTORS TODAY SHOULD HOLD A MIXTURE OF GROWTH AND VALUE STOCKS HE GENERALLY INSISTS ON A STOCK HE BUYS HAVING RISING EARNINGS ESTIMATES AND EXPANDING PROFIT MARGINS LIKE MR BOGLE HE IS SWEET ON DSC COMMUNICATIONS HE ALSO LIKES CHEYENNE SOFTWARE VINTAGE PETROLEUM HORNBECK OFFSHORE SERVICES AND WESTERN GAS RESOURCES YESTERDAY'S SURGE IN STOCK PRICES MAY NOT PORTEND A LARGE AND LASTING RALLY ACCORDING TO A RECENT POLL OF MONEY MANAGERS THE NEXT MOVE OF 10 OR MORE IN STOCK PRICES IS MORE LIKELY TO BE DOWN THAN UP ACCORDING TO A POLL OF 100 MONEY MANAGERS BY SHEARSON LEHMAN BROTHERS CONSULTING GROUP IN THE POLL TAKEN APRIL 715 70 OF THE MANAGERS SAID THE NEXT BIG MOVE WILL PROBABLY BE DOWN ONLY 25 THOUGHT IT WOULD BE UP AND 5 GAVE NO OPINION LOOKING OUT TO NEXT SPRING 41 OF THE MANAGERS EXPECT STOCKS TO RISE 33 EXPECT THEM TO DECLINE AND 24 EXPECT THEM TO STAY ABOUT WHERE THEY ARE NOW BUT ONE THING THEY DEFINITELY EXPECT TO RISE IS THE FEDERAL BUDGET DEFICIT DESPITE DEFICITCUTTING TALK IN WASHINGTON MANAGERS BY A MARGIN OF 75 TO 8 EXPECT THE DEFICIT TO GET WORSE FULLY 49 OF THE MANAGERS EXPECT HIGHER INTEREST RATES WITH ONLY 19 PREDICTING THAT RATES WILL FALL BUT THE TYPICAL MANAGER FELT THAT AN UPWARD CREEP IN RATES WON'T REALLY HURT THE STOCK MARKET UNTIL 30YEAR TREASURY BONDS YIELD 75 OR MORE THE TYPICAL MANAGER DOESN'T THINK THINGS WILL GET THAT BAD PREDICTING JUST 70 OR SO IN JUNE AND 72 IN DECEMBER THE 100 MANAGERS ARE IN 27 STATES AND DON'T NECESSARILY DO BUSINESS WITH SHEARSON LEHMAN BROTHERS CONSULTING GROUP OF COURSE THEIR MARKET VIEWS MAY OR MAY NOT BE RIGHT SOME INVESTORS USE PREVAILING MARKET SENTIMENT AS A CONTRARY INDICATOR 9305200149 930520 INTERNATIONAL DE BENEDETTI SAYS POLITICAL BRIBES WERE COMMONPLACE IN THE 1980S OLIVETTI CHAIRMAN SAYS HE CLEARED PAYOFFS IN ITALY TO GET WORK FOR FIRM BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN IF HE HAD TO DO IT ALL OVER AGAIN ITALIAN INDUSTRIALIST CARLO DE BENEDETTI SAYS HE WOULD DO THE SAME THING HE WOULD PAY BRIBES TO POLITICIANS TO GET PUBLICWORKS CONTRACTS BECAUSE THOSE WERE THE RULES OF THE GAME IN ITALY IN THE 1980S AND I'D DO IT WITH THE SAME DISGUST I DID THEN SAID THE 58YEAROLD CHAIRMAN AND CONTROLLING SHAREHOLDER OF ING C OLIVETTI & CO IN AN INTERVIEW A RELATIVELY TRANQUIL MR DE BENEDETTI REFLECTED ON HIS MANY BATTLES FINANCIAL AND POLITICAL WITH THE ITALIAN POLITICAL ESTABLISHMENT OVER THE YEARS AND DISCUSSED WHY HE IS OPTIMISTIC ABOUT THE OUTCOME OF THE LATEST ONE MR DE BENEDETTI'S DESCRIPTION OF THE POLITICAL PRESSURES BROUGHT TO BEAR IN ITALY IN THE 1980S SHEDS LIGHT ON THE GENERAL ITALIAN BUSINESS CLIMATE FOR BOTH ITALIAN AND FOREIGN COMPANIES OPERATING IN ITALY IN THE PAST DECADE EMPHASIZING THAT PEOPLE AND ACTS MUST BE JUDGED IN THEIR HISTORICAL CONTEXT MR DE BENEDETTI DOESN'T APOLOGIZE FOR MAKING KICKBACKS TO ITALIAN POLITICAL PARTIES TO OBTAIN CONTRACTS WHEN OLIVETTI ARRIVED AT A STATE OF DESPERATION WITH A STATE AGENCY WHEN OUR SALES REPRESENTATIVES WEREN'T EVEN RECEIVED BY THE MINISTRY WHEN THENPOSTAL MINISTER GIUSEPPE PARRELLA SAID EVERYBODY ELSE PAID SO WE HAD TO PAY THEN I AUTHORIZED THE AGREEMENT HE SAID AND WHEN WE STOPPED PAYING IN 1991 WE DIDN'T GET ONE ORDER AS REPORTED MR DE BENEDETTI VOLUNTARILY TOLD MILAN MAGISTRATES ON SUNDAY THAT OLIVETTI PAID 10 BILLION LIRE 68 MILLION IN KICKBACKS TO THE MINISTRY OF POST AND TELECOMMUNICATIONS TO OBTAIN CONTRACTS IN THE 1980S HE ALSO TOLD MAGISTRATES OF FOUR OR FIVE OTHER INSTANCES BUT DECLINED TO ELABORATE ON DETAILS OF THOSE CASES ON TUESDAY MR DE BENEDETTI SAID HE HASN'T RECEIVED FORMAL NOTICE THAT HE IS UNDER INVESTIGATION IN THE CORRUPTION SCANDAL BUT ITALIAN NEWS REPORTS INDICATE THAT HIS NAME APPEARS ON AN UNDISCLOSED LIST OF THOSE UNDER INVESTIGATION LONG CONSIDERED A MAVERICK INDUSTRIALIST WHO OPERATED OUTSIDE THE TRADITIONAL ITALIAN POLITICAL SYSTEM MR DE BENEDETTI REFLECTED ON BEING CAUGHT UP IN THE SAME SYSTEM HE HAD DENOUNCED REPEATEDLY OVER THE YEARS I WAS PREPARED TO PAY NOT A SMALL PRICE TO MAINTAIN MY INDEPENDENCE HE SAID HE RECALLED WHEN IN 1985 THEN SOCIALIST PRIME MINISTER BETTINO CRAXI BLOCKED THE SALE OF STATE FOOD GROUP SME TO MR DE BENEDETTI AFTER THE DEAL HAD BEEN SIGNED MR DE BENEDETTI IMPLIED THAT MR CRAXI BLOCKED THE SALE BECAUSE OLIVETTI DIDN'T OFFER BRIBE MONEY IN ANOTHER INCIDENT MR DE BENEDETTI SAID HE FAILED TO GAIN CONTROL OF THEN FINANCIALLY TROUBLED PUBLISHING GROUP RIZZOLI IN 1981 BECAUSE OF POLITICAL PRESSURE THEN SOCIALIST FINANCE MINISTER SALVATORE FORMICA SAID THAT HE WOULD SEND THE POLICE TO OLIVETTI IF WE GOT NEAR RIZZOLI MR DE BENEDETTI RECALLED IT WAS A VENDETTA MAFIOSA HE SAID THE DEAL WAS ULTIMATELY BLOCKED BY THE GOVERNMENT THERE WERE BUSINESSMEN FRIENDS AND BUSINESSMEN ENEMIES HE SAID I WAS PART OF THE ENEMIES HE SAID IT WOULD HAVE BEEN IMPOSSIBLE FOR HIM TO REPORT THE KICKBACK SYSTEM AT THE TIME WHY DIDN'T I DENOUNCE SYSTEMATIC EXTORTION IN 1988 BECAUSE TODAY ITALY IS A VERY DIFFERENT PLACE THAN BACK THEN EVEN SIX MONTHS AGO NOBODY THOUGHT ITALY WOULD CHANGE AS MUCH AS IT HAS HE SAID HE DIDN'T STEP FORWARD TO CONFESS THE BRIBES OVER THE PAST YEAR BECAUSE HE WAS ACTING FIRST AS THE CHAIRMAN OF OLIVETTI WITH RESPONSIBILITIES TO THE COMPANY AND ITS SHAREHOLDERS YOU CAN'T GO DAMAGE YOUR COMPANY ON PURPOSE HE SAID I CAN'T GO DENOUNCE MY COMPANY IF IT WASN'T YET INVOLVED HOWEVER MR DE BENEDETTI SAID OTHER BUSINESSMEN SHOULDN'T WAIT UNTIL THEIR COMPANIES ARE INVESTIGATED BEFORE REPORTING EXTORTION TO MAGISTRATES WE'RE AT THE POINT WHERE IT'S NO LONGER DANGEROUS FOR COMPANIES TO COME FORWARD AND CONFESS HE SAID ULTIMATELY THE EFFECTS OF ITALY'S TANGENTOPOLI OR KICKBACK CITY SCANDALS WILL HAVE A POSITIVE EFFECT ON BUSINESS IN GENERAL AND OLIVETTI IN PARTICULAR MR DE BENEDETTI SAID BUT ONLY IF THE PROCESS IS COMPLETED RAPIDLY AND IF THE INVESTIGATORS GET TO THE VERY BOTTOM OF THEIR PROBE TANGENTOPOLI CAUSED A DISTORTION OF THE MARKET COMPANIES WEREN'T EVEN ASKED TO MAKE BIDS IF THEY WERE ON THE BLACK LIST OF THOSE WHO DIDN'T PAY KICKBACKS HE SAID AND IF THERE WAS THIS PRESSURE ON PRIVATE COMPANIES IMAGINE WHAT IT WAS LIKE FOR PUBLIC COMPANIES FOR THE MOMENT THE SCANDAL IS DAMAGING THE REPUTATION OF ITALY IN GENERAL AND ITALIAN COMPANIES IN PARTICULAR HE SAID NOTING THAT OLIVETTI HAS SUFFERED CONSEQUENCES FROM THE COUNTRY'S NEGATIVE IMAGE IT'S DIFFICULT TO UNDERSTAND FROM OUTSIDE BUT FROM AN ITALIAN POINT OF VIEW OLIVETTI CAN'T HAVE ANYTHING BUT POSITIVE EFFECTS IN THE LONG TERM IF THE INVESTIGATIONS ARE COMPLETED HE SAID MR DE BENEDETTI WHO STRESSED THAT HE NEVER PERSONALLY NEGOTIATED OR PAID A KICKBACK SAID HE HAS NO FURTHER SCHEDULED MEETINGS WITH THE MILAN MAGISTRATES HE PRESENTED INVESTIGATORS WITH THE NAMES OF THOSE OLIVETTI MANAGERS INVOLVED IN THE KICKBACK SCHEME AND EACH WILL TESTIFY OVER THE NEXT FEW WEEKS TWO OLIVETTI MANAGERS VINCENZO MANCUSO AND ARMANDO SCOTTI WERE QUESTIONED BY MAGISTRATES TUESDAY OTHER MANAGERS MUST PRESENT THEMSELVES IN THE NEXT FEW DAYS PERSONALLY I FEEL LIBERATED MR DE BENEDETTI SAID THINGS ARE FINALLY GOING IN THE DIRECTION I ALWAYS WANTED 9305200148 930520 KAUFMAN & BROAD SETTLEMENT LOS ANGELES KAUFMAN & BROAD HOME CORP SAID IT EXPECTS TO RECEIVE A SUBSTANTIAL AMOUNT OF CASH FROM CLOSELY HELD HOUSING GROUPNORTHERN CALIFORNIA INC IN AN OUTOFCOURT SETTLEMENT OF ALLEGATIONS OF COPYRIGHT INFRINGEMENT KAUFMAN & BROAD ALLEGED IN A NOVEMBER LAWSUIT THAT THREE RESIDENTIAL DESIGNS BY HOUSING GROUP VIOLATED COPYRIGHTED DESIGNS BY KAUFMAN & BROAD HOUSING GROUPNORTHERN CALIFORNIA IS A UNIT OF HOUSING GROUP INC A DEVELOPER BASED IN IRVINE CALIF KAUFMAN & BROAD SAID THE SETTLEMENT CALLS FOR HOUSING GROUP TO CEASE CONSTRUCTION OF ONE OF THE THREE MODELS HOUSING GROUP WILL BE ALLOWED TO COMPLETE CONSTRUCTION OF TWO OTHER MODELS AT A RESIDENTIAL DEVELOPMENT IN DIXON CALIF HOUSING GROUP COULDN'T BE REACHED TO COMMENT 9305200147 930520 CALIFORNIA BOND CASE MAY FORESHADOW IRS STANCE ON TAXING MUNICIPAL ISSUES BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A LITTLENOTICED DISPUTE OVER CALIFORNIA HOUSING BONDS MAY FORESHADOW A SLEW OF TAX COURT CASES STEMMING FROM THE INTERNAL REVENUE SERVICE'S INITIATIVE TO EXAMINE OR CHALLENGE THE TAXEXEMPT STATUS OF MORE THAN 12 BILLION OF MUNICIPAL BONDS UNDERWRITTEN BY MATTHEWS & WRIGHT GROUP INC THE CALIFORNIA DISPUTE ALREADY HAS LED TO THREE CASES IN THE TAX COURT AND GOVERNMENT OFFICIALS EXPECT THE IRS'S INITIATIVE TO TAX BONDHOLDERS WILL RESULT IN SIMILAR CASES IN THE MONTHS AHEAD IN THE PAST THE AGENCY GENERALLY HAS SETTLED SUCH DISPUTES WITH THE BOND ISSUERS RATHER THAN TAX THE HOLDERS THE THREE PENDING CASES STEM FROM IRS ATTEMPTS TO TAX BONDS THAT WERE UNDERWRITTEN BY MATTHEWS & WRIGHT AND SOLD AS TAXEXEMPT SECURITIES BEFORE TAX LAW DEADLINES IN THE MID1980S MATTHEWS & WRIGHT CHANGED ITS NAME TO HELMSTAR GROUP INC AFTER ITS MUNIUNDERWRITING PRACTICES LED TO SECURITIES AND EXCHANGE COMMISSION ENFORCEMENT ACTION IN 1989 AND THE CRIMINAL CONVICTION OF A SENIOR MATTHEWS & WRIGHT OFFICER THE SEC ACCUSED THE FIRM OF NOT DISCLOSING THAT THE BONDS POSED THE RISK OF BEING DECLARED TAXABLE BECAUSE OF VARIOUS PERCEIVED TAX PROBLEMS LITTLE WAS HEARD FROM THE IRS WHICH SUPPOSEDLY IS THE LEAD AGENCY ON ENFORCEMENT MATTERS REGARDING TAXEXEMPT BONDS BUT IN THE LAST YEAR OR SO IT TURNS OUT THAT THE IRS NOT ONLY NOTIFIED SEVERAL GOVERNMENTAL UNITS THAT ISSUED MATTHEWS & WRIGHTUNDERWRITTEN BONDS THAT THE SECURITIES FAILED TO PASS THE TESTS FOR TAX EXEMPTION BUT ALSO MOVED QUIETLY TO TAX THE HOLDERS OF SOME OF THOSE BONDS THE CASES PENDING BEFORE THE TAX COURT WERE FILED BY TWO COUPLES AND A CALIFORNIA BANK ALL OF WHOM PURCHASED BONDS ISSUED BY THE RIVERSIDE COUNTY CALIF HOUSING AUTHORITY THE BANK HARBOR BANCORP OF LONG BEACH WAS THE FIRST TO FILE IT WAS HIT BY THE IRS LAST YEAR WITH A DEFICIENCY NOTICE FOR NEARLY 20000 IN TAXES DUE ON INTEREST ON THE BONDS IT PETITIONED THE TAX COURT LATE LAST YEAR TO OVERTURN THE IRS'S POSITION THAT THE BONDS WERE TAXABLE ARGUING THAT IT PURCHASED THE BONDS AS TAXEXEMPT SECURITIES BASED ON THE REPRESENTATION OF ITS BROKERAGE FIRM RICHARD WILSON THE BANK'S GENERAL COUNSEL SAID NOTHING HAS HAPPENED YET IN THE CASE THE TAX COURT WHICH HAS A LENGTHY BACKLOG ISN'T EXPECTED TO HEAR THE CASES FOR MONTHS ONE THING THAT DID HAPPEN IN THE HARBOR BANCORP CASE WAS THAT THE IRS SUCCESSFULLY PETITONED THE TAX COURT TO REMOVE THE MATTER FROM ITS SMALL CASE DOCKET AND PUT IT ON THE REGULAR DOCKET SAYING THE CASE POSES IMPORTANT TAX POLICY AND TAXPAYER COMPLIANCE ISSUES IN THE FIELD OF TAXEXEMPT STATE AND LOCAL BONDS THE IRS SAID THE WAY THE TAX COURT HANDLES THE DISPUTE WILL CONSTITUTE PRECEDENT FOR THE RESOLUTION OF THE TAXEXEMPT STATUS OF NOT JUST THIS BOND ISSUE BUT THE MORE THAN 30 BOND ISSUES NATIONWIDE THAT THE IRS IS EXAMINING OR CHALLENGING 9305200146 930520 INTERNATIONAL JAPAN SATELLITE PLAGUED BY LOSSES GETS BANKING HELP BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO WHILE AMERICAN COMPANIES SUCH AS U S WEST INC AND TIME WARNER INC ARE BUSY LAYING THE GROUNDWORK FOR THE FUTURE OF INTERACTIVE ENTERTAINMENT THEIR JAPANESE COUNTERPARTS ARE BUSY JUST TRYING TO SURVIVE JAPAN SATELLITE BROADCASTING THE NATION'S FIRST AND LARGEST PRIVATE SATELLITEBROADCASTING SERVICE AND ONE OF JAPAN'S LARGEST BUYERS OF AMERICAN MOVIES SAID EIGHT BANKS HAD AGREED TO LEND IT 10 BILLION YEN 897 MILLION TO COVER ITS MOUNTING OPERATING LOSSES AT THE SAME TIME THE COMPANY THREW OUT ITS PRESIDENT A FORMER GOVERNMENT BUREAUCRAT IN FAVOR OF AN OFFICIAL FROM MATSUSHITA ELECTRIC INDUSTRIAL CO ONE OF JAPAN SATELLITE'S MAJOR INVESTORS THE SHAKEUP AT JAPAN SATELLITE IS MORE THAN JUST ANOTHER STORY OF A MISMANAGED COMPANY IT'S A STRIKING EXAMPLE OF THE WAY JAPAN'S BUREAUCRACY BUNGLED THE COUNTRY'S FUTURE TELEVISIONBROADCAST MARKET ONE OF TODAY'S HOTTEST TECHNOLOGICAL FIELDS ONE MAJOR UNANTICIPATED RESULT US COMPANIES HAVE SEIZED THE LEAD IN THE POTENTIALLY HUGE FIELD OF HOME ENTERTAINMENT AND INFORMATION TECHNOLOGY FROM THE BEGINNING JAPAN SATELLITE'S PATRON HAS BEEN THE POWERFUL MINISTRY OF POSTS AND TELECOMMUNICATIONS WHICH MADE THE COMPANY POSSIBLE BY OPENING THE SATELLITE BROADCAST MARKET IN 1984 CABLE TELEVISION HAS BEEN SLOW TO TAKE OFF IN JAPAN LEAVING SATELLITE BROADCASTING AS THE ONLY WAY TO REACH A NATIONWIDE AUDIENCE DIRECTLY INSTEAD OF ALLOWING SEVERAL COMPANIES TO COMPETE IN BROADCAST SERVICES THE POSTAL MINISTRY INVITED 190 COMPANIES INCLUDING MATSUSHITA SONY CORP INDUSTRIAL BANK OF JAPAN AND OTHER BLUECHIP COMPANIES TO JOIN AS SHAREHOLDERS IN A SINGLE NEW COMPANY JAPAN SATELLITE EARLY ON THE OSTENSIBLY INDEPENDENT COMPANY SELECTED AS PRESIDENT SHUZO TOKUDA A FORMER POSTAL MINISTRY BUREAUCRAT UNDER MR TOKUDA JAPAN SATELLITE WENT ON A BUYING BINGE OF US MOVIES AND SIGNED EXPENSIVE EQUIPMENT DEALS THAT FAVORED SOME MEMBER COMPANIES LEADING OTHER PARTNERS TO GRUMBLE ABOUT THE COSTS THE COMPANY WAS RACKING UP THESE DAYS JAPAN SATELLITE IS ANYTHING BUT AN INDUSTRY LEADER ITS FLAGSHIP MOVIE CHANNEL WOWOW HAS ATTRACTED JUST 128 MILLION SUBSCRIBERS LESS THAN HALF OF THE THREE MILLION THE COMPANY SAYS IT NEEDS TO BREAK EVEN JAPAN SATELLITE'S ACCUMULATED LOSSES AT THE END OF MARCH AMOUNTED TO MORE THAN 50 BILLION YEN THE COMPANY PROJECTS A PRETAX LOSS OF 201 BILLION YEN ON TOTAL REVENUE OF 346 BILLION YEN IN THE YEAR ENDED MARCH 31 IN THE US BY CONTRAST THE SUCCESS OF CABLE TELEVISION HAS DRIVEN COMPANIES HEADLONG INTO A SEARCH FOR NEW MARKETS 9305200145 930520 INTERNATIONAL REPORTER'S NOTEBOOK AMERICAN VISITORS TO SERBIA DISCOVER MIX OF EMOTIONS RANGING FROM HOSPITALITY TO HOSTILITY BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BELGRADE YUGOSLAVIA YOU AMERICANS WILL NEVER UNDERSTAND US SAYS SERB RESTAURATEUR DUSAN MRDJENOVIC AS AMERICANS ARE REASONABLE WE ARE EMOTIONAL HE GRACIOUSLY OFFERS AN AMERICAN GUEST THE HOUSE SPECIALITY GRILLED PORK STEAK AND RAISES A GLASS OF BEER IN A WELCOMING TOAST A FEW MINUTES LATER HE WARNS THE GUEST TO STAY AWAY SHOULD THE US LEAD A BOMBING CAMPAIGN AGAINST THE SERBS IN BOSNIAHERZEGOVINA OR AGAINST SERBIA ITSELF IF THAT HAPPENS HE SAYS I WILL BE SO ANGRY I MAY SHOOT YOU AN AMERICAN VISITOR TO SERBIA NEEDN'T SCRATCH TOO HARD TO FIND THE FULL RANGE OF EMOTIONS FROM HOSPITALITY TO HOSTILITY GRACIOUSNESS TO PARANOIA THAT HAVE MADE THE SERBS SO UNFATHOMABLE TO THE OUTSIDE WORLD DURING THE PAST TWO YEARS OF WAR A MAN WHO DAMNS THE US FOR BRANDING HIM A WAR CRIMINAL FONDLY TALKS ABOUT HIS HONEYMOON IN FLORIDA AND ABOUT AN AUNT IN OHIO WHO REGULARLY SENT PACKAGES OF AMERICAN SWEETS A CITY OFFICIAL BUSY COORDINATING CIVIL DEFENSE IN THE EVENT OF WESTERN AIR STRIKES ASKS ABOUT THE NATIONAL BASKETBALL ASSOCIATION PLAYOFFS A FAMILY THAT HAS JUST UNANIMOUSLY VOTED AGAINST A UNITED NATIONSSPONSORED PEACE PROPOSAL OFFERS TO ROAST A PIG FOR AMERICAN JOURNALISTS ALREADY ISOLATED BY INTERNATIONAL SANCTIONS SERBS AWAIT THE NEXT MOVE FROM THE WEST WHICH MIGHT EVEN INCLUDE MILITARY INTERVENTION AND AS THEY DO THESE EMOTIONS BECOME MORE ACUTE AND CONFOUNDING AMERICA A CHERISHED ALLY IN WORLD WAR II IS SIMULTANEOUSLY IDOLIZED AND DEMONIZED THE TOWN SQUARE IN LOZNICA NEAR SERBIA'S BORDER WITH BOSNIA IS BRIMMING WITH BRAVADO SUPPORTERS OF THE ULTRANATIONALIST SERBIAN RADICAL PARTY ARE GATHERING TO CONDEMN WESTERN PEACE MOVES AND SUPPORT THEIR BROTHERS IN PRESSING ON WITH THE WAR IN BOSNIA BANNERS AND PLACARDS TAUNT THE WESTERN POWERS USA GENOCIDE UNNATO OCCUPATION DECLARES ONE CLINTON DO YOU WANT ANOTHER VIETNAM SAYS ANOTHER TWO MILES AWAY ON THE BANKS OF THE DRINA RIVER WHICH FORMS THE BORDER WITH BOSNIA ANTIAIRCRAFT GUNS POINT TOWARD THE SKY READY TO FIRE AT WESTERN WARPLANES WE SERBS ARE NOT AFRAID SAYS A SOLDIER IN A CAMOUFLAGE UNIFORM WAVING A SERBIAN FLAG AT THE RADICAL PARTY RALLY WE ARE PREPARED FOR WAR WITH AMERICA AS THE RALLY WINDS DOWN A BASKETBALL GAME BEGINS IN BELGRADE IT IS THE YUGOSLAV CHAMPIONSHIP BETWEEN RED STAR AND PARTISAN TWO BELGRADE TEAMS BASKETBALL A GAME IMPORTED FROM THE US RIVALS SOCCER AS THE SERBS' FAVORITE SPORT AMERICAN BASKETBALL IT IS BEAUTIFUL SAYS A 15YEAROLD BOY ROOTING FOR PARTISAN FROM THE TOP ROW OF THE STADIUM HE ENTHUSIASTICALLY JOINS IN ALL THE CHEERS INCLUDING ONE BORROWED FROM AN AMERICAN SONG OH SUSANNAH I LOVE PARTISANAH AS RED STAR ROLLS TO VICTORY THE BOY SLUMPS IN HIS SEAT AND SAYS WE COULD USE MICHAEL JORDAN REFERRING TO THE CHICAGO BULLS SUPERSTAR A PARTISAN FAN WEARING A MAGIC JOHNSON TSHIRT LEAVES THE STADIUM DISAPPOINTED YET HOPEFUL THAT ANOTHER FAVORITE TEAM WILL WIN A CHAMPIONSHIP THE PHOENIX SUNS THEY'RE MY TEAM HE SAYS THEY'RE THE BEST OF COURSE NEARLY EVERY CONVERSATION WITH A SERB IS ACCOMPANIED BY COFFEE JUICE OR PLUM BRANDY DOBROSAV VEJZOVIC SERBIA'S DEPUTY FOREIGN MINISTER OFFERS ALL THREE AND SETTLES ON CHERRY JUICE OUR FOREIGN MINISTER GOES TO WASHINGTON AND NOBODY WILL MEET WITH HIM MR VEJZOVIC COMPLAINS BUT THE MUSLIMS EVERYBODY MEETS WITH THEM ASTOUNDED THAT THE WORLD COULD TURN ITS BACK ON THE SERBS HE RAMBLES ON FOR 90 MINUTES ABOUT THE HISTORY OF THE SERBIAN NATION AND ITS RELATIONS WITH THE WESTERN WORLD HE SPINS ONE CONSPIRACY THEORY AFTER ANOTHER BLAMING THE CENTRAL INTELLIGENCE AGENCY THE GERMANS AND THE VATICAN FOR SERBIA'S PROBLEMS AMERICA HE WARNS WILL BE SORRY FOR SCORNING THE SERBS TWO HOURS EAST OF BELGRADE IN THE DANUBE RIVER VILLAGE OF KISELJAK CHERRY JUICE IS AGAIN OFFERED BRANISLAV RADOJCIC POURS FROM HIS HOMEMADE STOCK HIS WIFE OFFERS TO COOK LUNCH THERE ARE NO HISTORY LECTURES NO CONSPIRACIES NO THREATS FOR THE US VISITORS JUST AN OFFER TO GO FISHING MR RADOJCIC PROUDLY SHOWS OFF THE BARNYARD BEHIND HIS HOUSE WHICH HAS SEVERAL KINDS OF FRUIT TREES AND A MENAGERIE OF FARM ANIMALS YES HE SAYS HE HAS FRIENDS WHO HAVE SOME SPARE GASOLINE A PRECIOUS COMMODITY IN THESE DAYS OF SANCTIONS A FEW HOUSES DOWN THE ROAD TWO MEN A FATHER AND SON ARE HAPPY TO SELL SOME GAS I WOULD LIKE TO GET RID OF THE GAS SO MY SON WILL STAY AT HOME AND STOP DRIVING TO RESTAURANTS ALL THE TIME SAYS THE FATHER THE SON LAUGHS AND PARTS WITH 20 LITERS THEY ACCEPT THE AGREEDUPON PRICE BUT REFUSE A TIP INSTEAD THE FATHER SCURRIES AWAY AND HURRIES BACK WITH A BIG BOTTLE OF WINE FOR THE AMERICAN CUSTOMERS DRIVE CAREFULLY HE SAYS WAVING FROM HIS YARD AND COME AGAIN 9305200144 930520 CITICORP HIRES EXKODAK AIDE FOR SENIOR POST STEFFEN WHO LEFT PRIOR JOB AFTER CLASH TO OVERSEE BANK'S INTERNAL CONTROLS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITICORP CHAIRMAN JOHN S REED HIRED CHRISTOPHER J STEFFEN THE AGGRESSIVE FORMER CHIEF FINANCIAL OFFICER OF EASTMAN KODAK CO TO OVERSEE THE BANK'S FINANCIAL CONTROLS AND OPERATIONS MR REED'S UNPRECEDENTED MOVE TO TAP AN OUTSIDER AS A TOP EXECUTIVE REFLECTS HIS DESIRE FOR SOMEONE WITH EXPERIENCE AT INDUSTRIAL COMPANIES TO HELP ADMINISTER THE NATION'S LARGEST BANK ACCORDING TO PEOPLE CLOSE TO THE COMPANY CITICORP HAS BEEN PLAGUED BY POOR INTERNAL CONTROLS AND SLOPPY AUDITING PRACTICES A CITICORP SPOKESMAN CONFIRMED THE APPOINTMENT WHICH IS A NEW POSITION EXPECTED TO BE ANNOUNCED TODAY MR STEFFEN IS SCHEDULED TO JOIN IN JUNE BUT IS EXPECTED TO ATTEND A MEETING TODAY WITH THE BANK'S TOP 20 EXECUTIVES MR STEFFEN COULDN'T BE REACHED FOR A COMMENT MR REED HAD DISCUSSIONS WITH MR STEFFEN BEFORE HE JOINED EASTMAN KODAK AND CALLED HIM AFTER HE RESIGNED PEOPLE CLOSE TO THE BANK SAY MR STEFFEN 51 YEARS OLD RESIGNED FROM EASTMAN KODAK IN LATE APRIL AFTER CLASHING WITH KAY WHITMORE KODAK'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ON HOW QUICKLY AND WHO SHOULD HAVE AUTHORITY TO SELL ASSETS AND CUT COSTS HIS ABRUPT RESIGNATION CAME LESS THAN THREE MONTHS AFTER HE WAS HIRED WITH MUCH FANFARE TO SHAKE UP THE STODGY ROCHESTER NY PHOTOGRAPHY COMPANY MR STEFFEN'S RESIGNATION CAME AFTER MR WHITMORE MADE CLEAR THAT MR STEFFEN WASN'T RUNNING THE SHOW A NATIVE OF DETROIT MR STEFFEN IS A HARDNOSED MANAGER WHO HELPED TURN AROUND HONEYWELL INC IN THE LATE 1980S AND CHRYSLER CORP BEFORE THAT A CLASH SUCH AS THE ONE AT KODAK ISN'T LIKELY AT CITICORP FOR THE IMMEDIATE FUTURE AT LEAST FOR ONE THING MR STEFFEN'S PRIMARY TASK ISN'T TO CUT COSTS IN THE PAST TWO YEARS CITICORP HAS REDUCED STAFF BY 14000 PEOPLE AND REACHED ITS GOAL OF SLASHING ANNUAL EXPENSES BY 13 BILLION BUT MR STEFFEN HAS A REPUTATION FOR TAKING A BROAD VIEW OF HOW FAR HE CAN BECOME INVOLVED IN A COMPANY'S AFFAIRS PARTICULARLY WHEN HE WAS A CHIEF FINANCIAL OFFICER AND HE HAS SAID THAT EVENTUALLY HE WOULD WANT TO BE THE CHIEF EXECUTIVE OFFICER OF A MAJOR CORPORATION MR STEFFEN CLEARLY ISN'T COMING IN AS A NO 2 AT CITICORP BUT RATHER AS A MEMBER OF THE SIXPERSON MANAGEMENT COMMITTEE THAT RUNS THE BANK CITICORP CURRENTLY DOESN'T HAVE A PRESIDENT THE LAST ONE BEING RICHARD BRADDOCK WHO RESIGNED LAST OCTOBER AFTER WHAT THE BANK SAID WAS A DISAGREEMENT WITH MR REED OVER HIS RESPONSIBILITIES MR STEFFEN WILL HAVE THE TITLE OF SENIOR EXECUTIVE VICE PRESIDENT AND WILL BE NOMINATED TO THE COMPANY'S BOARD REPORTING TO MR REED WHO IS ALSO CHIEF EXECUTIVE OFFICER MR STEFFEN WILL BE RESPONSIBLE FOR INTERNAL OPERATIONS AUDIT FINANCIAL CONTROLS AND PRODUCTIVITY PROGRAMS THOMAS JONES THE COMPANY'S EXECUTIVE VICE PRESIDENT FINANCE WILL REPORT TO MR STEFFEN MR STEFFEN WAS HIRED BY MR REED BECAUSE OF THE FEELING WITHIN THE SENIOR RANKS OF THE COMPANY THAT ITS FINANCIAL CONTROLS AND AUDITING HAVE BEEN INADEQUATE EXECUTIVES SAY AT A CONFERENCE OF TOP CITICORP EXECUTIVES IN MARCH MR REED SAID ONE GOAL FOR 1993 WOULD BE TO REDUCE OUR RISK PROFILE WHICH WE CAN ACCOMPLISH THROUGH EXECUTIONAL DISCIPLINE AND CONTROL FEDERAL BANK REGULATORS LAST SUMMER ISSUED A DEVASTATING EXAM OF CITIBANK'S MORTGAGE DIVISION CITING LAX INTERNAL CONTROLS AND WARNING THAT THE BOARD AND MANAGEMENT NEGLECTED THEIR RESPONSIBILITIES WHILE THE COMPANY KNEW OF THE PROBLEM IT DID NOTHING ABOUT IT UNTIL TOO LATE EARLIER IN 1992 THE BANK WAS CENSURED BY THE COMPTROLLER OF THE CURRENCY AFTER IT WAS FOUND THAT LAX PROCEDURES IN THE BANK'S SECURITIESTRANSFER OPERATION ALLOWED HUNDREDS OF MILLIONS OF DOLLARS WORTH OF CANCELED SECURITIES TO REMAIN IN CIRCULATION JUST A FEW WEEKS AGO CITICORP DISCLOSED THAT IT WAS INCORRECTLY TABULATING THE RETURNS ON RETIREMENT FUNDS FOR 32000 EMPLOYEES WHICH MR REED SAID WAS INEXCUSABLE AND SHOULD HAVE BEEN CAUGHT SOONER AND THE BANK HAS BEEN CENSURED BY AUTHORITIES IN INDIA FOR ITS INVOLVEMENT IN A SECURITIES SCANDAL CITICORP HAS DENIED ANY WRONGDOING BUT REMOVED THE HEAD OF ITS INDIA OPERATIONS AND WITHDREW FROM CERTAIN ACTIVITIES THERE AT CITICORP MR REED 54 CLEARLY HAS BEEN A HANDSON CHIEF EXECUTIVE IN RECENT YEARS AS HE STEERED THE BANK AWAY FROM A CAPITAL CRISIS AND IMPLEMENTED A FIVEPOINT RESCUE PLAN BUT LONGTIME CITICORP WATCHERS SAY CIRCUMSTANCES FORCED THAT ROLE UPON HIM AND THAT HIS PENCHANT IS TO STEP BACK AND PLAN MORE LONGTERM CREATIVE STRATEGIES AS THE FINANCIAL WORLD RAPIDLY CHANGES IF MR REED WITH THE BOARD'S BLESSING TAKES THIS ROLE IT COULD SET OFF A HORSE RACE FOR A SECONDINCOMMAND WHO WOULD RUN THE BANK'S DAYTODAY OPERATIONS IN THAT CASE MR STEFFEN WOULD BE A LIKELY CONTENDER ONE CHALLENGE FOR MR STEFFEN WILL BE TO FIT INTO CITICORP'S SENIOR MANAGEMENT WHICH HAS A REPUTATION FOR BEING HIGHLY TURFCONSCIOUS SOME EXECUTIVES COULD BE THREATENED BY MR STEFFEN'S HARDCHARGING WAYS ONE FORMER CHRYSLER COLLEAGUE SAID MR STEFFEN ROUTINELY ARRIVED AT CHRYSLER MEETINGS WITH THE EQUIVALENT OF A GRENADE IN HIS BRIEFCASE TO BE TOSSED AT AN EXECUTIVE WHOSE NUMBERS DIDN'T MEASURE UP THIS COLLEAGUE CALLED HIM VERY ADVERSARIAL THE DECISION TO BRING IN AN OUTSIDER AMONG SENIOR EXECUTIVES IS UNPRECEDENTED IN THE BANK'S RECENT HISTORY H ONNO RUDING THE OTHER OUTSIDER IN THE GROUP OF SIX WAS A BOARD MEMBER BEFORE BEING NAMED VICE CHAIRMAN LAST YEAR TO OVERSEE GLOBAL CORPORATE BANKING WHILE HIS MAIN TASK WILL BE TO IMPROVE INTERNAL CONTROLS MR STEFFEN WILL ALSO ENSURE THAT THE COMPANY REMAINS VIGILANT ON KEEPING EXPENSES IN CHECK CITICORP EXECUTIVES SAY WHILE MUCH OF THE COSTCUTTING IS IN PLACE CITICORP EXECUTIVES BELIEVE THEY COULD CUT AN ADDITIONAL 1 BILLION OUT OF COSTS TO REINVEST IN GROWING BUSINESSES HE'LL MAKE SURE WE DON'T REVERT BACK TO THE OLD CITICORP SAYS ONE EXECUTIVE REFERRING TO A BANK THAT TRADITIONALLY SPENT WITH EXTRAVAGANCE MR REED HAS OFTEN GONE OUTSIDE THE BANKING INDUSTRY FOR MIDLEVEL EXECUTIVE TALENT WHEN HE WAS BUILDING CITICORP'S CONSUMER BANK IN THE 1970S HE TAPPED CONSUMER EXPERTS FROM GENERAL FOODS SUCH AS MR BRADDOCK AND PEIYUAN CHIA NOW HEAD OF GLOBAL CONSUMER BANKING HOWEVER MR REED NOT ONLY WANTED AN OUTSIDER FOR THE JOB BUT SOMEONE FROM AN INDUSTRIAL BACKGROUND WITH MANUFACTURING EXPERIENCE HE BELIEVES THAT THE PEOPLE FROM MANUFACTURING HAVE A DISCIPLINE AND APPROACH TO BUSINESS THAT IS DIFFERENT FROM SERVICE AND FINANCIAL COMPANIES JOHN DOES NOT THINK BANKING IS A NATURAL BREEDING GROUND FOR GOOD MANAGERS ONE CITICORP EXECUTIVE SAID LESLIE SCISM CONTRIBUTED TO THIS ARTICLE 9305200143 930520 INTERNATIONAL DENG'S SON JOINS HONG KONG'S LATEST BACKDOOR' PURCHASE HONG KONG THE ALLIANCE BETWEEN ONE OF HONG KONG'S RICHEST MEN AND CHINA'S BIGGEST STEEL COMPANY HAS PICKED UP A POWERFUL NEW PARTNER DENG ZHIFANG SON OF CHINA'S PARAMOUNT LEADER DENG XIAOPING LI KASHING'S CHEUNG KONG HOLDINGS LTD A PROPERTYSALES CONCERN AND CHINA'S SHOUGANG CORP PARTNERS SINCE LAST YEAR'S ACQUISITION OF TUNG WING STEEL HOLDINGS LTD TEAMED UP WITH THE YOUNGER MR DENG AND A HANDFUL OF OTHER HIGHPROFILE NAMES TO PAY 582 MILLION HONG KONG DOLLARS US753 MILLION FOR A 74 STAKE IN KADER INVESTMENT CO THE PUBLICLY TRADED PROPERTYINVESTMENT ARM OF KADER HOLDINGS CO KADER HOLDINGS OWNS A STAKE IN THE TOY FACTORY IN THAILAND WHERE A FIRE THIS MONTH KILLED MORE THAN 200 WORKERS MR DENG HAS JOINED A GROWING TIDE OF HIGHRANKING CHINESE MARCHING DOWN THE CAPITALIST ROAD AFTER A STINT AT CHINA INTERNATIONAL TRUST & INVESTMENT CORP HE NOW IS CONCENTRATING ON PROPERTY DEVELOPMENT AND INVESTMENT IN CHINA MR DENG WILL SIT ON KADER INVESTMENT'S BOARD A FACT THAT RAISED EYEBROWS IN HONG KONG IT IS GOOD NEWS THAT CHINA'S LEADERSHIP IS INTERESTED IN THE MARKET BUT IT MAY NOT BE VERY GOOD FOR THE INTEGRITY OF THE MARKET SAID ARCHIE HART DIRECTOR OF RESEARCH AT CROSBY SECURITIES HK LTD HE SAID CONFLICTS OF INTEREST MAY ARISE IF YOU SEE AN INCREASE IN CHINA'S LEADERSHIP INVOLVED IN THE MARKET PEOPLE MAY BEGIN TO QUESTION WHETHER THEY'RE PLAYING ON A LEVEL PLAYING FIELD WHICH IS IMPORTANT FOR CONFIDENCE IN HONG KONG IN ANNOUNCING THE KADER DEAL THE PURCHASERS SAID THEY INTENDED TO USE THE COMPANY FOR PROPERTY INVESTMENT IN HONG KONG AND CHINA RATHER THAN INJECTING MATERIAL ASSETS OR BUSINESSES INTO THE LISTED SHELL AS SHOUGANG DID EARLIER THIS MONTH WITH TUNG WING STEEL KADER INVESTMENT'S NEW OWNERS WILL HAVE A SMALL PORTFOLIO OF PROPERTIES TO WORK WITH TOGETHER WITH ABOUT HK337 MILLION IN CASH FROM THE SALE OF A FEW KEY ASSETS TO KADER HOLDINGS THE DEAL IS THE LATEST OF SHOUGANG'S BACKDOOR LISTINGS IN WHICH CHINESE ENTERPRISES GAIN ENTRY TO THE HONG KONG STOCK MARKET BY BUYING UP LISTED COMPANIES RATHER THAN BY APPLYING FOR A CONVENTIONAL NEW LISTING BESIDES TUNG WING STEEL AND KADER INVESTMENT SHOUGANG HAS INTERESTS IN EASTERN CENTURY HOLDINGS LTD AND SANTAI MANUFACTURING LTD 9305200142 930520 CAMPBELL SOUP SAYS EARNINGS GREW 19 FOR ITS THIRD QUARTER CAMDEN NJ THANKS LARGELY TO A COSTCUTTING PROGRAM CAMPBELL SOUP CO'S EARNINGS INCREASED 19 FOR ITS THIRD QUARTER ENDED MAY 2 DESPITE FLAT SALES IN THE KEY NORTH AND SOUTH AMERICAN SOUP BUSINESS AND DISAPPOINTING COOKIE RESULTS FOR THE QUARTER CAMPBELL'S EARNINGS INCREASED TO 1085 MILLION OR 43 CENTS A SHARE FROM 915 MILLION OR 36 CENTS A SHARE FOR THE YEARAGO QUARTER SALES ROSE 6 TO 163 BILLION MOSTLY BECAUSE OF THE INCORPORATION OF THE RESULTS OF ARNOTTS LTD THE AUSTRALIAN BISCUIT MAKER THAT CAMPBELL ACQUIRED A CONTROLLING INTEREST IN EARLIER THIS YEAR CAMPBELL INCLUDES 100 OF ARNOTT'S SALES IN ITS RESULTS BUT ONLY 58 OF ITS EARNINGS THE EARNINGS WERE SLIGHTLY ABOVE WALL STREET EXPECTATIONS AND CAMPBELL'S STOCK CLOSED AT 42375 UP 875 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE JOHN MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INC SAID THE COMPANY HAS BENEFITED FROM A COSTCUTTING BINGE ALTHOUGH HE NOTED CAMPBELL LAGGED BEHIND OTHER BIG FOOD COMPANIES BY FIVE YEARS IN PARING COSTS THE FLAT SOUP VOLUME FOLLOWED TWO YEARS OF SOLID INCREASES HE NOTED SAYING THE SOUP BUSINESS IS MORE VIBRANT THAN I HAVE SEEN IT IN A DECADE SALES IN THE 3 BILLION SOUP BUSINESS HAVE BEEN GROWING AT 10 RATE IN THE PAST YEAR HE SAID CAMPBELL'S 90 SHARE OF THE CONDENSED SOUP MARKET GIVES IT THE ABILITY TO RAISE PRICES WITHOUT LOSING BUSINESS HE ADDED THE COOKIE BUSINESS WHICH INCLUDES PEPPERIDGE FARM CONTINUES TO BE A DISAPPOINTMENT LAST YEAR THE COMPANY BLAMED THE WEAK ECONOMY FOR SLUGGISH SALES OF THE EXPENSIVE BRAND THIS QUARTER NEW PRODUCT EXPENSES FOR THE DELACRE LINE IN EUROPE WERE BLAMED EXCLUDING AN ACQUISITION PROFITS WERE DOWN 6 IN THE COOKIE BUSINESS YOU ARE NOT GOING TO BE FIRING ON ALL YOUR CYLINDERS CONCURRENTLY SAID MICHAEL BRANCA A FOOD ANALYST AT NATWEST SECURITIES CORP OVERALL IT WAS A VERY SOLID PERFORMANCE BY CAMPBELL CAMPBELL'S HEALTHY REQUEST SOUPS SWANSON FROZEN MEALS AND VLASIC PICKLES ALL POSTED STRONG VOLUME GAINS IN THE QUARTER THE MORE EXPENSIVE LE MENU FROZEN DINNER SALES WERE DOWN SUBSTANTIALLY ANALYSTS SAID THE COMPANY WILL DISCONTINUE LE MENU OR INCORPORATE IT INTO THE SWANSON LINE 9305200141 930520 WHO'S NEWS POWER CORP OF CANADA POWER CORP OF CANADA MONTREAL JOHN AIRD AND AF KNOWLES RETIRED AS DIRECTORS REDUCING THE NUMBER OF BOARD MEMBERS TO 21 BOTH MEN ARE 70 YEARS OLD THE HOLDING COMPANY'S MANDATORY RETIREMENT AGE MR KNOWLES WILL CONTINUE TO SERVE AS A CONSULTANT TO POWER CORP WHICH HAS INTERESTS IN FINANCIAL SERVICES AND THE MEDIA 9305200140 930520 WHO'S NEWS DATAMETRICS CORP DATAMETRICS CORP CHATSWORTH CALIF DANN V ANGELOFF 57 YEARS OLD PRESIDENT OF ANGELOFF CO WAS ELECTED A DIRECTOR SUCCEEDING JOHN BLACKBURN 34 WHO RESIGNED MR BLACKBURN IS MANAGING PARTNER OF TBM ASSOCIATES INC A VENTURE CAPITAL CONCERN THAT PREVIOUSLY HAD SIGNIFICANT HOLDINGS IN DATAMETRICS DATAMETRICS PRODUCES COMPUTER PERIPHERALS AND COMMUNICATIONS PRODUCTS FOR THE INDUSTRIAL COMMERCIAL AND GOVERNMENTAL MARKETS 9305200139 930520 WHO'S NEWS AL LABORATORIES INC AL LABORATORIES INC FORT LEE NJ THOMAS G GIBIAN 71 YEARS OLD WAS ELECTED TO THE BOARD OF THIS MAKER OF PHARMACEUTICALS AND ANIMALHEALTH PRODUCTS MR GIBIAN A CONSULTANT FILLS A VACANCY CREATED BY THE DEATH OF CHARLES A SPECHT EARLIER THIS YEAR 9305200138 930520 WHO'S NEWS PRUDENTIAL INSURANCE CO OF AMERICA PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ J M TAYLOR 45 YEARS OLD A SENIOR VICE PRESIDENT AND DIRECTOR OF INSTITUTIONAL EQUITY SALES WAS NAMED AN EXECUTIVE VICE PRESIDENT AND DIRECTOR OF THE EQUITY GROUP OF PRUDENTIAL SECURITIES INC A UNIT OF THE INSURER MR TAYLOR WILL OVERSEE EQUITY AND ECONOMIC RESEARCH TRADING OF EQUITIES AND EQUITY DERIVATIVES INSTITUTIONAL EQUITY RESEARCH AND TRADING SALES EQUITY AND OPTIONS EXCHANGE ACTIVITIES AND PRIVATE CLIENT EQUITY SERVICES HE SUCCEEDS EDWARD BRANIFF WHO RETIRED EARLIER THIS YEAR 9305200137 930520 INTERNATIONAL PRICES AT RUSSIA'S FIRST DEBT AUCTION SEEM UNLIKELY TO EARN BUYERS A PROFIT BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE PRICES OF TREASURY BILLS AT RUSSIA'S FIRST GOVERNMENT DEBT AUCTION SEEM UNLIKELY TO EARN THE BUYERS A PROFIT THE MINIMUM SUCCESSFUL PRICE BID FOR THE BILLS WAS 832 OF FACE VALUE THE AVERAGE PRICE WAS 847 OF FACE VALUE IN RUSSIA'S CURRENT CLIMATE OF 20 MONTHLY INFLATION THE HIGHEST PRICE AT WHICH THE BUYERS OF THESE TREASURY BILLS COULD EXPECT TO BREAK EVEN WOULD BE 58 OF FACE VALUE TO PUT IT ANOTHER WAY INFLATION WOULD HAVE TO DROP BELOW 6 A MONTH BEFORE INVESTORS COULD EARN ANY PROFIT IT ONLY MAKES SENSE IN THE CONTEXT OF WHAT THE ALTERNATIVE INVESTMENTS ARE SAYS TIMOTHY FROST PROGRAM DIRECTOR OF THE RUSSIAN AMERICANBANKERS FORUM WHICH ALONG WITH THE INTERNATIONAL MONETARY FUND ADVISED THE RUSSIAN GOVERNMENT ON HOW TO DEVELOP ITS NEW TREASURY BILLS WITH INFLATION RAMPANT AND FINANCIAL INSTRUMENTS FEW MR FROST SPECULATES THAT RUSSIAN INVESTORS MAY FOR NOW BE CONTENT SIMPLY TO LOSE LESS BY BUYING TREASURY BILLS THAN IF THEY KEPT THEIR HOLDINGS IN CASH HE ALSO SUGGESTS THAT BANKS MAY VALUE THE PRESTIGE OF TAKING PART IN THIS FIRST STATE DEBT AUCTION DMITRY TULIN DEPUTY CHAIRMAN OF RUSSIA'S CENTRAL BANK TOLD A NEWS CONFERENCE YESTERDAY THE BANK IS PLEASED WITH THE RESULTS OF THE AUCTION THE HOPE IS THAT RUSSIA'S NEWEST FINANCIAL INSTRUMENT THREEMONTH TREASURY BILLS TO BE SOLD AT MONTHLY AUCTIONS WILL HELP DAMP INFLATION THE BILLS PROVIDE THE GOVERNMENT FOR THE FIRST TIME WITH A MEANS TO BORROW RUBLES FROM THE PRIVATE SECTOR RATHER THAN ISSUE INFLATIONARY RUBLE CREDIT TO COVER ITS BUDGET DEFICIT REGULAR TREASURY BILL SALES COULD ALSO PROVIDE BENCHMARK INTEREST RATES FOR A BANKING SYSTEM STILL LARGELY AT SEA BUT THE SIGNIFICANCE OF TUESDAY'S AUCTION LIES MAINLY IN THE FACT THAT IT TOOK PLACE AT ALL THE VALUE OF THE TREASURY BILLS SOLD WAS TRIVIAL THE GOVERNMENT AUCTIONED OFF BILLS VALUED AT A TOTAL OF 750 MILLION RUBLES OR ABOUT 800000 TO BE REDEEMED AT FACE VALUE ON AUG 17 COMPARED WITH OUR DEFICIT THIS IS VERY SMALL SAID THE HEAD OF THE CENTRAL BANK'S SECURITIES DEPARTMENT ANDREI KOZLOV MR KOZLOV ESTIMATED RUSSIA'S BUDGET DEFICIT AT SEVERAL TRILLIONS OF RUBLES THE CENTRAL BANK AND 24 OTHER BANKS WERE AUTHORIZED TO BID AT THE AUCTION AND TO RESELL VIA THE MOSCOW CURRENCY EXCHANGE OF THESE 21 TOOK PART TUESDAY MEANWHILE THE CENTRAL BANK SAID IT WILL ISSUE ITS LARGEST BILL YET FOR 50000 RUBLES TODAY IN THE LATEST YEAR THE BANK HAS COME OUT WITH 10000RUBLE 5000RUBLE AND 1000RUBLE NOTES TRYING TO KEEP UP WITH INFLATION 9305200136 930520 ITT'S HOTEL UNIT CASINO NEW YORK ITT CORP SAID ITS HOTEL UNIT PLANS TO SPEND 55 MILLION TO DEVELOP A 25000SQUARE FOOT DOCKSIDE CASINO IN NORTHERN MISSISSIPPI ABOUT 20 MILES SOUTH OF MEMPHIS TENN THE NEW CASINO IS ITT SHERATON CORP'S SECOND VENTURE INTO THE GAMING BUSINESS THREE WEEKS AGO THE COMPANY ANNOUNCED PLANS TO BUILD A 42 MILLION 1450 PASSENGER RIVERBOAT CASINO THE LADY SHERATON TO BE DOCKED IN NEW ORLEANS BOTH CASINOS ARE EXPECTED TO BE COMPLETED ABOUT ONE YEAR AFTER LICENSING IS APPROVED BY STATE REGULATORY AGENCIES 9305200135 930520 TREASURY TO RAISE CASH WITH THE SALE OF NOTES WASHINGTON THE TREASURY PLANS TO RAISE A COMBINED 141 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF 1575 BILLION OF TWOYEAR NOTES ON TUESDAY AND 11 BILLION OF FIVEYEAR NOTES WEDNESDAY THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 1266 BILLION IN MATURING TWO AND FIVEYEAR NOTES THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827K92 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827L26 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EDT NEXT TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EDT NEXT WEDNESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT 9305200134 930520 PSE&G'S ENERGYSAVING PLAN NEWARK NJ PUBLIC SERVICE ELECTRIC & GAS CO AN ELECTRIC UTILITY SAID IT WILL PAY PARTICIPATING COMPANIES TO SAVE ELECTRICITY THE CONSERVATION PLAN A FORM OF DEMANDSIDE MANAGEMENT WILL HELP PARTICIPATING COMPANIES PAY FOR NEW ENERGYEFFICIENT EQUIPMENT UNDER THE PROGRAM CALLED THE STANDARD OFFER THE PUBLIC SERVICE ENTERPRISE GROUP UNIT WILL PROVIDE MONTHLY CASH PAYMENTS FOR AS LONG AS 15 YEARS IN RETURN FOR ACTUAL MEASURED ENERGY SAVINGS 9305200133 930520 MAYBE SHE WAS TRYING TO WING IT AS A PIGEON BUT DIDN'T KNOW HOW BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL BEVERLY HILLS CALIF FOR NEARLY TWO DAYS BUSINESS ALL BUT GROUND TO A HALT WHILE WORKERS AND PASSERSBY WATCHED THE SEVENTHFLOOR WINDOW LEDGE OF AN OFFICE BUILDING WHERE DELPHINE COWERED THAT'S DELPHINE THE PEAHEN WHO HAD MYSTERIOUSLY FLOWN HER NEARBY COOP BUT IN THE END IT SEEMED A BIRD IN THE HAND WAS WORTH TWO FIRE TRUCKS NOT TO MENTION FIVE POLICE CARS A PAIR OF WAITING AMBULANCES AT LEAST THREE TV HELICOPTERS THRONGS OF REPORTERS AND TELEVISION CAMERAS ON THE GROUND AND THE TEMPORARY CLOSING OF A MAJOR INTERSECTION ONLOOKERS CHEERED YESTERDAY AS DELPHINE WAS LOWERED TO THE GROUND IN A FISH NET BY A FIREMAN WHO RAPPELLED DOWN THE FACE OF THE BUILDING AFTER SEVERAL PREVIOUS RESCUE ATTEMPTS HAD FAILED THE BIRD'S OWNER MARIO MATHIAS RUSHED FORWARD AND SCOOPED THE PEAHEN INTO HIS ARMS FOR A WHILE HE HAD FEARED IT WAS GOING TO BE BYE BYE BIRDIE POOR DELPHINE HE SAID BEING A LITTLE OVERWEIGHT AND NOT BASICALLY A FLYING BIRD I WAS WORRIED SHE WOULD JUST FALL OVER AND LAND LIKE AN OMELET SAID MR MATHIAS WHO NAMED THE 35POUND GRAYANDWHITE FOWL AFTER HIS GRANDMOTHER THE BIRD'S PEACOCK MATE THE FAR MORE LUXURIOUSLY PLUMED ENRIQUE HAD BEEN MAKING LONELY NOISES EVER SINCE SHE DISAPPEARED MONDAY EVENING FROM THE PAIR'S BACKYARD AVIARY A BLOCK AWAY THE PEN HAD BEEN DAMAGED AND MR MATHIAS SUSPECTS FOWL PLAY ESPECIALLY SINCE DELPHINE LEFT TWO UNHATCHED EGGS BEHIND THE NEXT MORNING A CALLER TO A LOCAL ANIMAL SHELTER REPORTED THAT A BIRD MATCHING DELPHINE'S DESCRIPTION WAS PERCHED AGAINST THE SEVENTHFLOOR WINDOW OF A LAW FIRM A TREE TRIMMER TRIED TO HELP OUT BUT SHE WOULDN'T BUDGE A WINDOWCLEANING SERVICE WANTED 1000 LADDERS ON FIRE TRUCKS WERE TOO SHORT AFTER THE RESCUE AN OBSERVER QUIPPED THE PEAHEN HAS LANDED ANOTHER SAID GLUMLY NOW WE CAN GET BACK TO WORK OTHERS GRUMBLED ABOUT THE FLAP OVER THE BIRD WHAT ARE THEY GOING TO DO THE NEXT TIME A CAT GETS STUCK UP A TREE WONDERED MORTGAGE BANKER BILL TEEM BY YESTERDAY MORNING DELPHINE HAD WADDLED ALONG THE LEDGE TO PERCH OUTSIDE HIS OFFICE WINDOW MR TEEM ISN'T NECESSARILY THE KIND OF PERSON TO CALL ON TO TALK SOMEBODY OFF A LEDGE HE SAYS HE SPENT THE MORNING TAPPING ON THE THE INSIDE OF THE WINDOW AND PLEADING PLEASE JUMP BECAUSE NO ONE'S GETTING ANY WORK DONE IN HERE 9305200132 930520 INTERNATIONAL FIAT BUYS REMAINDER OF MASERATI MILAN ITALIAN CAR MAKER FIAT SPA BOUGHT THE 51 STAKE OF LUXURY SPORTS CAR PRODUCER MASERATI SPA IT DIDN'T ALREADY OWN FOR 75 BILLION LIRE 51 MILLION FIAT ITALY'S LARGEST PUBLICLY OWNED INDUSTRIAL GROUP SAID IT BOUGHT THE STAKE FROM DE TOMASO INDUSTRIES INC THE US HOLDING COMPANY OF ALEJANDRO DE TOMASO FIAT HAD PREVIOUSLY OUGHT A 49 STAKE IN MASERATI FROM DE TOMASO IN 1989 FIAT SAID MASERATI PRODUCED 1000 CARS IN 1992 SELLING HALF OF THEM IN ITALY AND THE OTHER HALF ABROAD MASERATI SHOWED A LOSS OF 114 MILLION FOR THE FIRST THREE MONTHS OF 1993 ON SALES OF 143 MILLION 9305200131 930520 ECONOMY US SEES RISE IN OIL IMPORTS AS OUTPUT FALLS DROP IN CRUDE PRODUCTION FOR 4 MONTHS EXCEEDS ANALYSTS' EXPECTATIONS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRODUCTION IN THE US IS FALLING FASTER THAN EXPECTED AND PETROLEUM IMPORTS ARE RISING AS A RESULT OIL INDUSTRY FIGURES SHOW THAT 1993 US CRUDE OUTPUT AVERAGED BELOW SEVEN MILLION BARRELS A DAY THROUGH APRIL DOWN 5 FROM A YEAR EARLIER AND THE LOWEST PRODUCTION LEVEL FOR A FOURMONTH PERIOD SINCE 1960 IN APRIL ACCORDING TO THE AMERICAN PETROLEUM INSTITUTE IMPORTS OF CRUDE OIL AND PETROLEUM PRODUCTS CLIMBED TO 86 MILLION BARRELS A DAY THAT WAS UP 62 FROM A YEAR EARLIER AND WAS THE HIGHEST MONTHLY LEVEL SINCE AUGUST 1991 THE API REPORTED FOR THE FIRST FOUR MONTHS OF 1993 IMPORTS WERE 11 HIGHER AT 82 MILLION BARRELS A DAY THE OIL INDUSTRY ASSOCIATION SAID IN ITS MONTHLY STATISTICAL REPORT THE API SAID HIGHER PETROLEUM DEMAND CONTRIBUTED TO THE IMPORT RISE BUT THE API SAID THE INCREASE IN PETROLEUM DEMAND UP ONLY 11 FROM A YEAR EARLIER TO ABOUT 17 MILLION BARRELS A DAY IN APRIL WAS LESS THAN ANTICIPATED NOTING THAT MANY ANALYSTS HAD EARLIER EXPECTED 2 TO 3 GAINS IN PETROLEUM DEMAND THE API SAID SLUGGISH GROWTH SO FAR THIS YEAR HAS BEEN DISAPPOINTING AS A RESULT THE API SAID THE BULK OF THIS YEAR'S IMPORTS INCREASE HAS BEEN THE RESULT OF DETERIORATING DOMESTIC SUPPLIES RATHER THAN ANY STRONG GROWTH IN DOMESTIC CONSUMPTION US OIL PRODUCTION HAS BEEN DECLINING SINCE THE MID1980S BECAUSE OF LOWER PRICES AND A DROP IN DRILLING AS MANY US COMPANIES SPENT MORE ABROAD AND LESS AT HOME SO FAR THIS YEAR DOMESTIC CRUDE OIL PRODUCTION HAS DECLINED MORE RAPIDLY THAN EXPECTED THE API NOTED IN THE FIRST FOUR MONTHS OF 1992 CRUDE OUTPUT HAD FALLEN 290000 BARRELS OR 39 TO 73 MILLION BARRELS A DAY IN LINE WITH THE PATTERN OF DECLINES OF PRIOR YEARS BUT THIS YEAR IN APRIL AS WELL AS THE FIRST FOUR MONTHS PRODUCTION FELL FASTER AVERAGING ONLY 69 MILLION BARRELS A DAY WE HAD BEEN EXPECTING A DECLINE OF 300000 BARRELS A DAY BUT NOW IT'S 400000 BARRELS A DAY SAID EDWARD MURPHY DIRECTOR OF FINANCE ACCOUNTING AND STATISTICS FOR THE AMERICAN PETROLEUM INSTITUTE THE DISTURBING POINT HE ADDED IS THAT THESE ARE NATURAL DECLINES WITH NOTHING EXTRAORDINARY TO ACCOUNT FOR THEM CRUDE OIL PRODUCTION FELL BELOW SEVEN MILLION BARRELS A DAY FOR TWO MONTHS AUGUST AND SEPTEMBER LAST YEAR BUT THAT WAS DUE TO HURRICANE DISRUPTIONS IN THE GULF OF MEXICO AND TO A SLOWING OF ALASKAN OUTPUT BECAUSE OF MAINTENANCE WORK ON THE PIPELINE IN BOTH ALASKA AND THE OTHER STATES THE RATE OF DECLINE IN CRUDE OIL PRODUCTION SO FAR THIS YEAR HAS ACCELERATED THE API SAID IN APRIL ALONE PRODUCTION FELL 5 OR 360000 BARRELS A DAY IN ALASKA ACCORDING TO THE API CRUDE OUTPUT SLIPPED BELOW 16 MILLION BARRELS A DAY IN APRIL FOR THE FIRST TIME SINCE 1984 IT WAS WELL BELOW THE 1988 PEAK OF 21 MILLION BARRELS A DAY THE API NOTED THAT AT THE PRUDHOE BAY FIELD WHICH ACCOUNTS FOR SOME 70 OF ALASKA'S OUTPUT CONSIDERABLE INVESTMENTS DURING THE PAST TWO DECADES HAVE RAISED THE ESTIMATED ULTIMATE OIL RECOVERY BY SOME 25 TO MORE THAN 12 BILLION BARRELS HOWEVER THESE INVESTMENTS HAVEN'T STOPPED ALASKAN OIL PRODUCTION FROM DECLINING 9305200129 930520 PEPPERAND SALT IF YOU HAD JUST INVITED ONE COMPUTER HACKER'S SIGNATURE MODEMOPERANDI 9305200128 930520 TECHNOLOGY MANY DOCTORS WHO TREAT TB FAIL TO FOLLOW GUIDELINES STUDY FINDS BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA MANY DOCTORS ARE IGNORANT OF RECOMMENDED GUIDELINES FOR TREATING TUBERCULOSIS A NEW FEDERAL STUDY FOUND A FAILING OF CRITICAL CONCERN AS THE NUMBER OF TB CASES CONTINUES TO RISE A SURVEY OF MORE THAN 2000 DOCTORS WORKING IN AREAS WITH A HIGH INCIDENCE OF TB FOUND THAT ONLY 58 FOLLOWED A FEDERAL REGIMEN FOR TB TREATMENT ACCORDING TO THE US CENTERS FOR DISEASE CONTROL AND PREVENTION HERE THE AGENCY SAID 75 OF THE DOCTORS INCORRECTLY INTERPRETED THE RESULTS OF A SKIN TEST FOR TB AND 27 USED INCORRECT LABORATORY TESTS WHAT'S MORE 11 OF THE DOCTORS SURVEYED DON'T EVEN REALIZE THAT TB IS SUPPOSED TO BE REPORTED TO LOCAL HEALTH DEPARTMENTS SAID ESTHER SUMARTOJO A BEHAVIORAL SCIENTIST WITH THE CDC'S DIVISION FOR TB ELIMINATION THE PHYSICIAN SURVEY COMES AT A TIME WHEN CONCERN IS GROWING THAT TB ONCE BELIEVED TO HAVE BEEN ALL BUT ERADICATED IS INCREASING AT AN ALARMING RATE IN 1992 26673 ACTIVE CASES OF TB WERE REPORTED IN THE US UP 15 FROM 1991 THE CDC REPORTED YESTERDAY FROM 1985 TO 1992 THE TOTAL NUMBER OF CASES OF TB INCREASED MORE THAN 20 AN ESTIMATED 10 MILLION TO 15 MILLION PEOPLE IN THE US ARE INFECTED WITH TB BACTERIA AND ABOUT 10 WILL DEVELOP THE DISEASE URBAN AREAS ARE THE HARDEST HIT WITH ATLANTA NEWARK NJ AND NEW YORK REPORTING THE HIGHEST INCIDENCE OF TB NATIONWIDE THE INCREASE IN TB CASES REFLECTS THE INCREASE IN HOMELESSNESS AIDS AND URBAN BLIGHT SAID MARK R CHASSIN COMMISSIONER OF HEALTH FOR NEW YORK STATE ONE OF THE HARDERHIT AREAS WE'VE RECREATED THE SOCIAL CONDITIONS THAT ALLOWED IT TO PROPAGATE BEFORE DR CHASSIN SAID WE'VE GOT OVERCROWDED HOUSING DRUG USE AND INADEQUATE HEALTH CARE ONE OF THE MOST PRESSING PROBLEMS IS THE PRESENCE OF HUNDREDS OF DRUGRESISTANT TB STRAINS AT LEAST THREE OF WHICH ARE RESISTANT TO ALL TB DRUG THERAPIES DR SUMARTOJO SAID SUCH STRAINS EMERGE WHEN PATIENTS FAIL TO FINISH TREATMENT THAT ALLOWS THOSE BACTERIA THAT SURVIVED THE INITIAL DOSES OF DRUGS TO PROLIFERATE AND PASS ON THE GENES THAT ENABLED THEM TO SURVIVE TO THEIR OFFSPRING PHYSICIANS NEED TO GET PATIENTS TO COMPLETE THEIR THERAPY DR CHASSIN SAID IF YOU INTERRUPT THE TREATMENT THAT'S A PERFECT RECIPE FOR MORE DRUG RESISTANCE BUT GETTING PATIENTS TO COMPLETE THEIR TREATMENT ISN'T AS EASY AS IT SOUNDS CONSIDER FOR SOME FORMS OF MULTIPLE DRUGRESISTANT TB PATIENTS MUST TAKE AS MANY AS SIX OR SEVEN DIFFERENT DRUG TREATMENTS ALL OF WHICH CARRY DIFFERENT REGIMENS FOR INSTANCE A PATIENT MIGHT HAVE TO REMEMBER TO TAKE ONE TREATMENT THREE TIMES A DAY FOUR DAYS A WEEK ANOTHER TREATMENT TWO TIMES A DAY THREE DAYS A WEEK A SHOT THREE TIMES A WEEK ETC SOME DOCTORS DR CHASSIN SAID DON'T REALIZE THEY NEED TO WORK OUT A THERAPY PROGRAM WITH THEIR PATIENTS THAT WILL BETTER HELP THE PATIENTS ADHERE TO TREATMENT ALSO NEEDED HE SAID ARE HOME THERAPY PROGRAMS AND VISITING NURSES WHO CAN BETTER HELP PATIENTS OUTSIDE THE CONFINES OF A DOCTOR'S OFFICE 9305200127 930520 IMCERA TO TAKE BIG CHARGE CUT STAFF BY 10 BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL IMCERA GROUP INC SAID IT WILL TAKE A CHARGE IN THE FISCAL FOURTH QUARTER THAT IS SUBSTANTIALLY GREATER THAN 100 MILLION AND CUT MORE THAN 1000 EMPLOYEES OR 10 OF ITS STAFF TO RESTRUCTURE ITS PITMANMOORE ANIMALHEALTH PRODUCTS DIVISION THE NORTHBROOK ILL SPECIALTY CHEMICAL COMPANY SAID IT ALSO WAS CLOSING 11 OF PITMANMOORE'S 27 PRODUCTION FACILITIES IN THE US AND ABROAD AND HALTING DEVELOPMENT OF A GENETICALLY ENGINEERED HOG GROWTH HORMONE AS PART OF THE RESTRUCTURING IMCERA ANNOUNCED IN MARCH THAT IT WOULD TAKE A SIGNIFICANT CHARGE IN THE CURRENT QUARTER TO REVAMP PITMANMOORE THE UNIT'S EARNINGS GROWTH SLOWED IN RECENT QUARTERS MAINLY BECAUSE OF SLUGGISH ECONOMIC GROWTH IN MAJOR GLOBAL MARKETS DECLINING FEED INGREDIENT PRICES AND DELAYS IN FOOD AND DRUG ADMINISTRATION APPROVAL FOR CERTAIN PRODUCTS ESPECIALLY THE HOG HORMONE FOLLOWING YESTERDAY'S ANNOUNCEMENT IMCERA SHARES GAINED 50 CENTS TO 2950 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING C RAY HOLMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF IMCERA SAID THAT BY JUNE 30 THE END OF THE COMPANY'S FISCAL YEAR IMCERA EXPECTS TO REPORT A FINAL FIGURE FOR THE RESTRUCTURING CHARGE ON AN OPERATING BASIS THE COMPANY EXPECTS TO REPORT A SLIGHT IMPROVEMENT OF A FEW CENTS A SHARE FOR FISCAL 1993 FROM THE 165 A SHARE OPERATING PROFIT IT REPORTED IN FISCAL 1992 MR HOLMAN SAID MR HOLMAN SAID THE JOB CUTS AND PLANT CLOSINGS ELIMINATE COSTLY MANUFACTURING AND ADMINISTRATIVE DUPLICATION PRIMARILY FROM ACQUISITIONS MADE IN RECENT YEARS TO CREATE THE ANIMAL HEALTH COMPANY ABOUT 500 EMPLOYEES RECEIVED TERMINATION NOTICES YESTERDAY AND THE REMAINING 500 OR SO WILL BE LET GO OVER THE NEXT TWO YEARS AS THE PLANTS ARE SHUT DOWN HE SAID IN ADDITION TO DELAYS IN GAINING FDA APPROVAL THE PROSPECTS FOR THE HOG GROWTH HORMONE WERE DIMMED BY RECENT ADVANCES IN TRADITIONAL BREEDING TECHNIQUES THAT CAN PRODUCE LEANER PIGS THAN IN THE PAST HE SAID THE GENETICALLY ENGINEERED PRODUCT ALSO DIDN'T APPEAR TO ADD ENOUGH VALUE TO JUSTIFY ITS COST FOR MANY PORK PRODUCERS MOUNTING CONSUMER RESISTANCE TO BIOTECHNOLOGY PRODUCTS NOTABLY A GROWTH HORMONE THAT STIMULATES MILK PRODUCTION IN DAIRY CATTLE ALSO PLAYED A FACTOR IN IMCERA'S DECISION HE SAID PITMANMOORE IS ONE OF THREE OPERATING COMPANIES AT IMCERA AND ACCOUNTS FOR MORE THAN HALF OF IMCERA'S EARNINGS THE OTHER TWO OPERATING COMPANIES ARE MALLINCKRODT MEDICAL PRODUCTS AND MALLINCKRODT SPECIALTY CHEMICALS LAST DECEMBER IMCERA SHOCKED INVESTORS WHEN THENCEO M BLAKEMAN INGLE AND BOYD D WAINSCOTT HEAD OF PITMANMOORE WERE FORCED TO RESIGN BY CHAIRMAN GEORGE D KENNEDY AND THE REST OF THE IMCERA BOARD AS A RESULT OF THE FAILURE OF PITMANMOORE TO MEET IMCERA'S OPERATING PROFIT TARGETS FOR THE DIVISION 9305200126 930520 INTERNATIONAL INITIAL PUBLIC OFFERING BY WOOLWORTHS LTD IS AUSTRALIA'S LARGEST SPECIAL TO THE WALL STREET JOURNAL SYDNEY WOOLWORTHS LTD UNVEILED THE LARGEST INITIAL PUBLIC OFFERING IN AUSTRALIAN CORPORATE HISTORY BUT ANALYSTS EXPECT DEMAND WILL OUTSTRIP THE ONE BILLION SHARES ON OFFER WOOLWORTHS IS AUSTRALIA'S SECOND BIGGEST RETAILER BEHIND COLES MYER LTD WITH 941 STORES ACROSS AUSTRALIA AND NEW ZEALAND SELLING A RANGE OF GOODS FROM GROCERIES TO ELECTRONICS THE COMPANY AIMS TO RAISE BETWEEN 215 BILLION US149 BILLION AND 245 BILLION AUSTRALIAN DOLLARS TO HELP SALVAGE THE FORTUNES OF ITS DEBTBURDENED OWNERS THE SHARES ARE OFFERED AT AN APPLICATION PRICE OF A245 EACH ALTHOUGH THE FINAL PRICE COULD BE SLIGHTLY LESS DEPENDING ON THE LEVEL OF DEMAND FROM INSTITUTIONS ANALYSTS SAID A SOUND EARNINGS RECORD THE PROMISE OF EARLY DIVIDENDS AND A LACK OF LISTED AUSTRALIAN RETAILERS SHOULD SEE THE COMPANY'S SHARE ISSUE WELLSUPPORTED ADELAIDE STEAMSHIP CO AND ITS AFFILIATE COMPANIES THAT OWN WOOLWORTHS ABORTED A FIRST ATTEMPT TO FLOAT THE RETAILER IN OCTOBER WHEN A SHARP DROP IN THE AUSTRALIAN STOCK MARKET SPOILED A RESURGENCE IN INVESTOR CONFIDENCE ADSTEAM NEEDS THE FUNDS TO REPAY A BANKING SYNDICATE SUPPORTING THE GROUP OF COMPANIES THROUGH A DEBT MORATORIUM ADSTEAM IS RESERVING A RIGHT TO CALL OFF THE OFFERING IF INVESTORS DON'T SUBSCRIBE FOR ALL ONE BILLION SHARES BUT ANALYSTS DON'T EXPECT THAT GIVEN A DRAFT PROSPECTUS' FORECASTS FOR PROFIT AND DIVIDENDS THE OFFER ISN'T UNDERWRITTEN WOOLWORTHS EXPECTS TO PAY A DIVIDEND OF SIX CENTS A SHARE IN NOVEMBER FOR THE SECOND HALF OF THE FISCAL YEAR ENDING JUNE 27 THE PROSPECTUS ALSO FORECASTS A DIVIDEND OF 12 CENTS A SHARE FOR THE FISCAL YEAR ENDING IN JUNE 1994 FOR A YIELD OF 49 ON THE APPLICATION PRICE 9305200124 930520 WHO'S NEWS BOWATER INC BOWATER INC DARIEN CONN THIS PAPER AND PULP PRODUCER SAID KENNETH M CURTIS 62 YEARS OLD WAS NAMED TO THE BOARD SUCCEEDING SIR DEREK MITCHELL 71 WHO REACHED THE MANDATORY RETIREMENT AGE MR CURTIS IS A FORMER GOVERNOR OF MAINE AND CURRENTLY IS PRESIDENT OF THE MAINE MARITIME ACADEMY SIR DEREK RETIRED SEVERAL YEARS AGO AS A SENIOR ADVISER TO SHEARSON LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO 9305200123 930520 CLINTON NOMINEE HUBBELL QUITS MOSTLY WHITE CLUB WASHINGTON ASSOCIATE ATTORNEY GENERALDESIGNATE WEBSTER HUBBELL ANNOUNCED HIS RESIGNATION FROM A VIRTUALLY ALLWHITE COUNTRY CLUB AT THE BEGINNING OF HIS CONFIRMATION HEARING IN A LETTER TO SENATE JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN D DEL MR HUBBELL OUTLINED HIS EFFORTS TO INTEGRATE THE COUNTRY CLUB OF LITTLE ROCK AND SAID HIS RESIGNATION IS APPROPRIATE GIVEN THE POSITION FOR WHICH I HAVE BEEN NOMINATED MR HUBBELL SAID HE WORKED TO INTEGRATE THE CLUB BY SPEAKING WITH CLUB MEMBERS AND OFFICIALS ABOUT THE NEED FOR A DIVERSE MEMBERSHIP AND BY RECRUITING POTENTIAL BLACK MEMBERS IN DECEMBER THE FIRST BLACK MEMBER HOWARD REED JOINED THE COUNTRY CLUB MR REED IS NOW AN ECONOMIST IN THE WASHINGTON OFFICE OF THE US TRADE REPRESENTATIVE YESTERDAY SEN BIDEN SAID HE EXPECTS THE SENATE TO EASILY CONFIRM MR HUBBELL AS ASSOCIATE ATTORNEY GENERAL MR HUBBELL WOULD OVERSEE THE JUSTICE DEPARTMENT'S CIVIL RIGHTS DIVISION AMONG OTHER AGENCIES THE NOMINEE IS A FRIEND OF PRESIDENT CLINTON AND HIS WIFE HILLARY RODHAM CLINTON AND A FORMER LAW PARTNER OF MRS CLINTON DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON WAS CRITICIZED FOR PLAYING GOLF AT THE SAME CLUB HE LATER APOLOGIZED PUBLICLY 9305200122 930520 TECHNOLOGY CHRISTIE'S DIDN'T CALCULATE 118 MILLION SURPRISE SALE LONDON SOONER OR LATER IT ALL ADDS UP A 19THCENTURY WINDUP CALCULATOR THE FIRST OF ITS KIND TO BE SOLD IN 70 YEARS WAS EXPECTED TO BRING ABOUT 30000 AT A CHRISTIE'S INTERNATIONAL PLC AUCTION YESTERDAY INSTEAD IT SOLD FOR A RECORDSMASHING 118 MILLION THE PRICE FLOORED EXPERTS IN THE ART WORLD SAID SAM PENNINGTON EDITOR OF THE MAINE ANTIQUE DIGEST 11 MILLION WAS BILL GATES IN IT WHILE THE CHAIRMAN OF MICROSOFT WASN'T INCLUDED THE CALCULATOR WAS STILL WORTH ENOUGH TO PROMPT THE WINNER SWISS COLLECTOR EDGAR MANNHEIMER TO WAGE A THREEMINUTE BIDDING WAR WITH AN UNIDENTIFIED BIDDER IN CHRISTIE'S LONDON SALESROOM CHRISTIE'S WAS A BIT EMBARRASSED AT ITS LOW EXPECTATIONS FOR THE PIECE IN FACT ITS OWN EXPERT ON SCIENTIFIC INSTRUMENTS DIDN'T EVEN ATTEND THE AUCTION EVEN SO THE FIRM IS BLUSHING ALL THE WAY TO THE BANK ITS COMMISSION ON THE SALE AMOUNTS TO ABOUT 12 MILLION WE'RE ASTOUNDED SAID A SPOKESWOMAN THE CALCULATOR BUILT IN 1820 BY JOHANN CHRISTOPH SCHUSTER IS 85INCHES ROUND IT WAS OWNED BY THE PRIVATE ASTRONOMER TO AN INDIAN PRINCE 9305200121 930520 DIVIDEND NEWS BWIP HOLDING INC BWIP HOLDING INC RAISED ITS QUARTERLY DIVIDEND 33 TO EIGHT CENTS A SHARE FROM SIX CENTS PAYABLE JULY 7 TO SHARES OF RECORD JUNE 15 THE INVESTMENT BANKING CONCERN PARENT COMPANY OF A MAKER OF INDUSTRIAL PUMPS AND FLUIDCONTROL SYSTEMS LAST RAISED ITS DIVIDEND IN MAY 1992 THE LONG BEACH CALIF COMPANY WHICH BEGAN PUBLIC TRADING IN MAY 1991 IS UNDER THE DIRECTION OF A MAJORITY OF NEW DIRECTORS AFTER A SHAKEUP IN MARCH BWIP HOLDING INC IS A MAKER OF INDUSTRIAL PUMPS AND FLUIDCONTROL SYSTEMS AN ITEM YESTERDAY INCORRECTLY IDENTIFIED THE COMPANY AS AN INVESTMENT BANKING CONCERN CONTROLLING SUCH OPERATIONS ALSO PRINCIPALS OF AN INVESTMENT BANKING CONCERN RECENTLY LEFT BWIP'S BOARD AFTER SELLING THEIR STOCK IN THE COMPANY RATHER THAN AFTER A SHAKEUP AS THE ITEM STATED 9305200120 930520 INTERNATIONAL RUSSIAN PARLIAMENT HALTED IN EFFORT TO CONTROL IZVESTIA MOSCOW REUTER RUSSIA'S CONSTITUTIONAL COURT BLOCKED AN ATTEMPT BY THE CONSERVATIVE PARLIAMENT TO TAKE CONTROL OF IZVESTIA AN INFLUENTIAL NEWSPAPER THAT BACKS PRESIDENT BORIS YELTSIN THE ITARTASS NEWS AGENCY SAID THE COURT RULED THAT A RESOLUTION BY PARLIAMENT LAST JULY FORMALLY ANNULLING IZVESTIA'S INDEPENDENT STATUS VIOLATED THE RUSSIAN CONSTITUTION THROUGH DECADES OF SOVIET RULE IZVESTIA WAS THE OFFICIAL ORGAN OF PARLIAMENT PRESENTING DRY ACCOUNTS OF KREMLIN DOCTRINE LACED WITH OCCASIONAL CODED' HINTS ABOUT FUTURE POLICY ITS FULL NAME WAS IZVESTIA NEWS OF THE SOVIETS OF PEOPLE'S DEPUTIES DURING MIKHAIL GORBACHEV'S PERESTROIKA IT GRADUALLY SHOOK OFF THE RESTRAINTS IMPOSED BY PARLIAMENT AND ULTIMATELY THE COMMUNIST PARTY AFTER THE FAILED 1991 COUP AND THE BANNING OF THE COMMUNIST PARTY IT REGISTERED AS AN INDEPENDENT NEWSPAPER LAST JULY'S RESOLUTION ORDERING IT TO BE RETURNED TO THE CONTROL OF PARLIAMENT HIGHLIGHTED A STRUGGLE BETWEEN YELTSIN AND THE LEGISLATURE MR YELTSIN HIT BACK SWIFTLY WITH A DECREE DECLARING IZVESTIA'S INDEPENDENCE INVIOLABLE 9305200119 930520 LLOYD'S EXPECTS US INVESTORS TO TAKE THE LEAD IN RESCUING BRITISH INSURER BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK US INVESTORS ARE EXPECTED TO TAKE A DOMINANT ROLE IN THE RESCUE OF LLOYD'S OF LONDON CONTRIBUTING MORE THAN HALF THE NEW MONEY IN THE RECAPITALIZATION OF THE TROUBLED INSURANCE MARKET A LLOYD'S OFFICIAL SAID WITHIN THREE YEARS US INVESTORS COULD ACCOUNT FOR 15 TO 20 OF THE CAPITAL AT LLOYD'S UP FROM 3 TO 4 NOW PETER MIDDLETON CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW LLOYD'S HAD PREVIOUSLY SAID US INVOLVEMENT WOULD BE SIGNIFICANT BUT DIDN'T SPECIFY THE EXTENT MR MIDDLETON DECLINED TO SAY EXACTLY HOW MUCH CAPITAL LLOYD'S EXPECTS TO RAISE ALTHOUGH PREVIOUSLY HE SAID LLOYD'S COULD USE AS MUCH AS 15 BILLION HE PREDICTED US INVESTORS WILL PUT UP MORE THAN HALF OF THE NEW MONEY LLOYD'S CAPITAL LEVEL STANDS AT 134 BILLION MR MIDDLETON SAID THE CAPITAL WOULD MOST LIKELY COME FROM US COMPANIES SET UP SPECIFICALLY TO INVEST IN LLOYD'S RATHER THAN ESTABLISHED INSURERS HE SAID HE HAS RECEIVED UNEXPECTEDLY STRONG INTEREST FROM US INVESTORS A PROSPECTUS ON HOW CORPORATIONS CAN INVEST IN LLOYDS WILL BE AVAILABLE AT THE END OF JULY MR MIDDLETON SAID THE NEW CAPITAL WOULD GIVE AN INCREASINGLY AMERICAN FLAVOR TO LLOYD'S WHICH HAS BEEN A PLAYGROUND FOR WEALTHY ENGLISHMEN SINCE ITS FOUNDING MORE THAN THREE CENTURIES AGO LLOYD'S FELL ON HARD TIMES IN THE LATE 1980S AFTER A SPATE OF LOSSES ON NATURAL DISASTER AND POLLUTION CLAIMS LLOYD'S HAD 76 BILLION IN LOSSES FROM 1988 TO 1990 IN THE PAST ONLY WEALTHY INDIVIDUALS COULD BE MEMBERS OF LLOYD'S IN RETURN FOR THE RIGHT TO INVEST IN LLOYD'S INSURANCE SYNDICATES THE MEMBERS KNOWN AS NAMES PLEDGED THEIR ENTIRE FORTUNES AGAINST POSSIBLE INSURANCE CLAIMS BUT IN A RADICAL DEPARTURE FROM PAST PRACTICES LLOYD'S RECENTLY ANNOUNCED IT WOULD ALLOW CORPORATIONS TO INVEST UNLIKE THE NAMES THE CORPORATE INVESTORS COULDN'T LOSE MORE THAN THEY INVEST ALTHOUGH LLOYD'S HAS PROJECTED THAT CORPORATE INVESTORS WILL EARN A SUITABLE RETURN SOME SAY THE PROBLEMS AT LLOYD'S RUN TOO DEEP FOR INVESTORS TO MAKE MONEY ANYTIME SOON IN AN INTERVIEW CLAUDE BEBEAR THE CHAIRMAN OF GROUPE AXA SA THE SECONDBIGGEST INSURANCE COMPANY IN FRANCE SAID HE HAS NO INTEREST IN INVESTING IN LLOYD'S WE WOULD ONLY INVEST MONEY IF WE WANTED TO LOSE IT AND WE DON'T WANT TO LOSE IT HE SAID MR MIDDLETON SAID MR BEBEAR'S CONCERNS WERE UNFOUNDED ALONG WITH ALLOWING THE ENTRY OF CORPORATIONS THE LLOYD'S RECOVERY PLAN INCLUDES COST CUTTING AND STRICTER CONTROLS ON UNDERWRITING 9305200118 930520 DIVIDEND NEWS BARNETT BANKS INC BARNETT BANKS INC JACKSONVILLE FLA CITING RECENT EARNINGS GAINS INCREASED ITS QUARTERLY DIVIDEND TO 36 CENTS A SHARE FROM 33 CENTS THE DIVIDEND IS PAYABLE JULY 1 TO SHAREHOLDERS OF RECORD JUNE 7 THE BANK HOLDING COMPANY WHICH LAST INCREASED ITS DIVIDEND THREE YEARS AGO HAD REPORTED A 37 EARNINGS GAIN IN THE FIRST QUARTER TO 923 MILLION OR 90 CENTS A SHARE FROM 676 MILLION OR 66 CENTS A SHARE IN THE YEAREARLIER PERIOD 9305200117 930520 INTERNATIONAL BASS PLC'S SHARES PLUNGE ON POOR RESULTS OUTLOOK SPECIAL TO THE WALL STREET JOURNAL LONDON SHARES IN BASS PLC BRITAIN'S BIGGEST BREWER PLUMMETED FOLLOWING THE ANNOUNCEMENT OF WORSETHANEXPECTED RESULTS AND A DOWNBEAT STATEMENT FROM IAN PROSSER CHAIRMAN AND CHIEF EXECUTIVE OFFICER BASS SHARES PLUNGED 50 PENCE 77 CENTS OR 94 TO 483 PENCE AND DRAGGED DOWN THE FINANCIAL TIMES STOCK EXCHANGE 100SHARE INDEX AS WELL THE DIVERSIFIED BREWING COMPANY REPORTED A 14 SLIDE IN PRETAX PROFIT TO 228 MILLION 350 MILLION FROM 266 MILLION FOR THE FIRST HALF ENDED APRIL 10 BASS BLAMED A SEVERE DOWNTURN IN ITS EUROPEAN HOTEL OPERATIONS AND AN INCREASED PROVISION AGAINST TRADE DEBTS AND FREE TRADE LOANS IN ITS BREWING BUSINESS MR PROSSER SAID BASS DOESN'T FORESEE ANY FAST RECOVERY IN THE BRITISH ECONOMY AND SO EXPECTS LIMITED BENEFIT FROM IT IN THE SECOND HALF OF ITS TRADING YEAR ANALYSTS SAID THE ABSENCE OF A BULLISH FORECAST HAD HURT BASS'S STOCK MORE THAN THE FIRSTHALF FIGURES FOR THE HALF BASS SAID SALES EDGED UP 18 TO 227 BILLION FROM 223 BILLION 9305200116 930520 TECHNOLOGY APPLE'S SUIT AGAINST HP MICROSOFT IS CLOSE TO TRIAL SAN FRANCISCO APPLE COMPUTER INC'S COPYRIGHT SUIT AGAINST MICROSOFT CORP AND HEWLETTPACKARD CO IS MOVING CLOSER TO A TRIAL THAT WILL DECIDE THE FEW REMAINING ISSUES IN THE CASE US DISTRICT COURT JUDGE VAUGHN WALKER HERE RULED ON SEVERAL MOTIONS FILED BY THE THREE COMPANIES AND PREPARED QUESTIONS FOR THE TRIAL SCHEDULED TO BEGIN JUNE 28 APPLE HAS CHARGED THAT MICROSOFT AND HP VIOLATED COPYRIGHTS THAT PROTECT THE LOOK AND FEEL OF ITS MACINTOSH COMPUTER MOST OF APPLE'S CLAIMS WERE GUTTED FROM THE CASE IN RULINGS LAST YEAR RELATED TO THE REMAINING CLAIMS JUDGE WALKER REMOVED FROM THE CASE FIVE DISPUTED FEATURES OF HP'S SOFTWARE AND THREE REMAINING DISPUTED FEATURES OF MICROSOFT'S WINDOWS SOFTWARE ACCORDING TO HP AMONG THE ISSUES STILL TO BE DECIDED IS WHETHER MIOSOFT'S AND HP'S SOFTWARE EACH AS A WHOLE ARE VIRTUALLY IDENTICAL TO APPLE'S SOFTWARE HP SAID 9305200115 930520 UNDERWRITERS GROUP MULLS DISCLOSURE RULE FOR POLITICAL FUNDING WASHINGTON RESPONDING TO GROWING CONCERNS ABOUT THE RELATIONSHIP BETWEEN POLITICAL FUND RAISING AND THE MUNICIPAL BOND BUSINESS THE MUNICIPAL SECURITIES RULEMAKING BOARD SAID IT'S CONSIDERING REQUIRING SECURITIES DEALERS TO DISCLOSE CAMPAIGN CONTRIBUTIONS THE MSRB SAID IT MAY REQUIRE THAT SUCH DISCLOSURES BE MADE BEFORE ANY UNDERWRITING ACTIVITY IN ADDITION THE MSRB SAID IT WILL MEET WITH GROUPS REPRESENTING MUNICIPAL BOND ISSUERS PRIMARILY FINANCE OFFICERS FROM CITY AND STATE GOVERNMENTS TO DISCUSS WHETHER MEASURES COULD BE ADOPTED BY ISSUERS OR STATE LEGISLATURES TO HELP ENSURE THAT POLITICAL CONTRIBUTIONS DO NOT INFLUENCE THE UNDERWRITER SELECTION PROCESS SECURITIES FIRMS HAVE BECOME AMONG THE BIGGEST CONTRIBUTORS TO THE CAMPAIGNS OF MANY STATE AND LOCAL POLITICIANS CRITICS CONTEND THAT CONTRIBUTIONS INFLUENCE THE AWARDING OF BUSINESS AND UNDERMINE THE PUBLIC'S CONFIDENCE IN THE SELECTION PROCESS OF MUNICIPAL BOND UNDERWRITERS INDEED THE MSRB ANNOUNCEMENT COMES AS FEDERAL AND STATE OFFICALS ACROSS THE COUNTRY ARE INVESTIGATING A NUMBER OF CASES INVOLVING POSSIBLE POLITICAL INFLUENCE PEDDLING IN THE AWARDING OF MUNICIPAL BOND BUSINESS IN NEW JERSEY THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING WHETHER CERTAIN BOND DEALERS VIOLATED SECURITIES LAWS IN CONNECTION WITH THE SALE OF 29 BILLION OF NEW JERSEY TURNPIKE AUTHORITY BONDS IN 1991 AND 1992 THE MSRB IS A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT ITS MEMBERSHIP IS COMPOSED LARGELY OF BOND DEALERS SEC COMMISSIONER RICHARD ROBERTS SAID HE WAS PLEASED BY THE MSRB ANNOUNCEMENT HOWEVER DURING HEARINGS BEFORE THE HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE COMMISIONER ROBERTS SUGGESTED THAT THE SEC WOULD PRESS CONGRESS FOR NEW REGULATIONS IN THE MUNICIPAL MARKET IF THE MSRB DIDN'T MOVE QUICKLY ENOUGH 9305200114 930520 SEC MAY SPEED UP STUDY OF INCENTIVES BY MARKETMAKERS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION MAY SPEED UP ITS REVIEW OF INCENTIVES THAT MARKETMAKERS GIVE RETAIL BROKERAGE FIRMS FOR PASSING ALONG ORDERS TO BUY AND SELL SECURITIES THE INCENTIVES KNOWN ON WALL STREET AS PAYMENTS FOR ORDER FLOW HAVE BECOME A BONE OF CONTENTION BETWEEN THE LARGE NEW YORK STOCK EXCHANGES AND THE MARKETMAKERS WHOSE WILLINGNESS TO PAY FOR ORDERS IS PULLING BUSINESS AWAY FROM THE EXCHANGES SOME MARKET PARTICIPANTS AND OBSERVERS INCLUDING REP EDWARD MARKEY D MASS HAVE QUESTIONED WHETHER THE VALUE OF THE INCENTIVES SHOULD BE PASSED ON TO BROKERAGE FIRM CUSTOMERS SOME INCENTIVES ARE PAID IN CASH AT A PENNY OR TWO A SHARE WHILE OTHERS ARE OFFERED AS DISCOUNTS AND OTHER NONCASH REMUNERATION THE SEC STAFF IS ALREADY COLLECTING PUBLIC COMMENT ON INCENTIVES AS PART OF ITS LARGER MARKET 2000 STUDY OF MARKETPLACE ISSUES SCHEDULED FOR RELEASE THIS FALL BUT AT A HEARING YESTERDAY BEFORE THE HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE TWO OF THE THREE SEC COMMISSIONERS SAID THEY WANT AN EARLIER AND MORE SPECIFIC EXAMINATION OF THE INCENTIVES ISSUE COMMISSIONERS MARY SCHAPIRO ACTING CHAIRMAN OF THE SEC AND RICHARD ROBERTS SAID THEY WANT TO SEEK SEPARATE COMMENT FROM THE PUBLIC AS EARLY AS THIS SUMMER SO THE AGENCY COULD IF NEEDED PROPOSE REGULATIONS THIS FALL SUCH RULES COULD INCLUDE REQUIRING RETAIL BROKERS TO DISCLOSE THE INCENTIVES TO CUSTOMERS OR EVEN GO SO FAR AS TO REQUIRE THAT CUSTOMERS RECEIVE CREDIT FOR THE INCENTIVES MS SCHAPIRO SAID COMMISSIONER CARTER BEESE JR DISAGREED ON THE TIMING OF THE REVIEW PAYMENT FOR ORDER FLOW IS ONE OF THE SIGNIFICANT COMPETITIVENESS ISSUES IN THE MARKETPLACE TODAY HE SAID IT DOES NOT MAKE SENSE TO BREAK APART THE MARKET 2000 STUDY TO TAKE UP THE ISSUE EARLY BUT THE AGENCY COULD BE UNDER PRESSURE FROM CONGRESS TO STEP UP THE REVIEW REP RON WYDEN D ORE DESCRIBED THE DEBATE AS THE LONGESTRUNNING BATTLE SINCE THE TROJAN WAR AND URGED THE COMMISSIONERS TO GET ON WITH IT AT A SUBCOMMITTEE HEARING THIS PAST WEEK RICHARD GRASSO EXECUTIVE VICE CHAIRMAN AND PRESIDENT OF THE NEW YORK STOCK EXCHANGE SAID THE SEC SHOULD ADOPT A RULE BANNING DEALERS FROM PAYING BROKERS FOR ORDER FLOW HE ADDED IF THE SEC DOESN'T ACT CONGRESS SHOULD BAN THE PRACTICE THROUGH LEGISLATION BERNARD MADOFF WHOSE OFFEXCHANGE MARKETMAKING FIRM COMPETES WITH THE EXCHANGES COUNTERED BY NOTING THAT THE BIG BOARD RECENTLY BEGAN OFFERING CASH REBATES TO BROKERAGE FIRMS WHO MAKE SMALL TRADES FOR INVESTORS OBVIOUSLY MADOFF INVESTMENT SECURITIES HAS NO MONOPOLY ON PAYING FOR ORDER FLOW HE SAID SANDRA BLOCK CONTRIBUTED TO THIS ARTICLE 9305200113 930520 YOUR MONEY MATTERS BALANCED FUNDS TIP SCALES DIFFERENTLY BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL THEY'RE THE RIGHT INVESTMENT PRODUCTS FOR A NERVOUS TIME THAT'S WHAT A LOT OF CONSERVATIVE INVESTORS THINK OF BALANCED FUNDS THE MUTUAL FUNDS THAT HOLD A MIX OF STOCKS AND BONDS IN THE SAME PORTFOLIO BUT INVESTMENT PROFESSIONALS ARE CONCERNED THAT INVESTORS ARE MOVING MONEY INTO THESE FUNDS WITHOUT STUDYING THE INDIVIDUAL RISK AND REWARD CHARACTERISTICS OF THEIR FUND TOO MANY PEOPLE SEE BALANCED FUNDS AS A GENERIC TYPE OF FUND SAYS MICHAEL STALKER A CHARTERED FINANCIAL ANALYST FROM EUGENE ORE WHO ADVISES INDIVIDUALS AND RETIREMENT PLANS ACTUALLY THE FUNDS HAVE VAST DIFFERENCES WITH PORTFOLIO MANAGERS MAKING DIFFERENT ECONOMIC BETS AND FOLLOWING DIVERSE STRATEGIES HE SAYS ONCE IN THE SLEEPY BACKWATERS OF THE MUTUAL FUND BUSINESS THESE HYBRID FUNDS WHICH TYPICALLY HOLD 60 OF THEIR ASSETS IN STOCKS AND 40 IN BONDS ARE SUDDENLY HOT THERE ARE NOW 97 BALANCED FUNDS UP FROM 77 ONLY A YEAR AGO INVESTORS HAVE PLOWED 348 BILLION INTO THESE FUNDS COMPARED WITH 22 BILLION A YEAR AGO ACCORDING TO LIPPER ANALYTICAL SERVICES INC WHY IS THIS HAPPENING ANXIOUS ABOUT THE STOCK MARKET BUT UNWILLING TO SETTLE FOR 26 RETURNS ON CERTIFICATES OF DEPOSIT MANY INVESTORS ARE USING THE BALANCED FUND AS A WAY TO STICK THEIR TOES INTO THE MARKET WITHOUT GETTING IN TOO DEEP BONDS PROVIDE SOME DOWNSIDE PROTECTION OTHER NEW BALANCED FUND INVESTORS ARE PARTICIPANTS IN CORPORATE 401K SAVINGS PLANS THAT HAVE BALANCED FUNDS AS ONE OF THEIR OPTIONS ALONG WITH STOCK AND BOND FUNDS THEY'VE DECIDED THAT BALANCED FUNDS ARE A CONVENIENT FORM OF ONESTOP SHOPPING THE BALANCED FUND IS UNDERGOING A RENAISSANCE SAYS BRIAN MATTES VICE PRESIDENT OF VANGUARD MUTUAL FUND GROUP VALLEY FORGE PA THE OLDEST AND LARGEST BALANCED FUND VANGUARD WELLINGTON FUND ESTABLISHED IN 1928 NOW HAS 67 BILLION OF ASSETS WITH 1 BILLION COMING IN FROM PARTICIPANTS IN CORPORATE SAVINGS PLANS ALONE IN THE PAST 12 MONTHS OVER THE PAST 15 YEARS BALANCED FUNDS HAVE DELIVERED SOLID IF NOT STELLAR RESULTS ACCORDING TO MORNINGSTAR MUTUAL FUNDS A CHICAGO CONCERN THAT TRACKS MUTUAL FUND PERFORMANCE BALANCED FUNDS TURNED IN AN AVERAGE TOTAL RETURN OF 14 A YEAR OVER THAT STRETCH THAT'S ABOUT TWO PERCENTAGE POINTS LESS THAN THE STANDARD & POOR'S 500STOCK INDEX BUT WITH A SMOOTHER RIDE IN SELECTING A BALANCED FUND PEOPLE NEED TO STUDY THE INVESTMENT STYLES FOLLOWED BY BOTH THE STOCK AND BOND PARTS OF THE FUNDS THEY ARE CONSIDERING SAYS MR STALKER FOR EXAMPLE VANGUARD'S WELLINGTON FUND WHICH HAS A 6040 STOCKBOND ALLOCATION EMPHASIZES VALUE STOCKS WITH A HEAVY CONCENTRATION OF US CYCLICAL STOCKS SUCH AS AUTOS ENERGY AND BANKS THAT DO WELL IN A RECOVERING ECONOMY WELLINGTON IS UP 58 THIS YEAR THROUGH MAY 17 A PERIOD WHEN CYCLICAL STOCKS HAVE DONE WELL ON THE OTHER HAND TWENTIETH CENTURY BALANCED FUND WITH THE SAME 6040 ALLOCATION SPECIALIZES IN HIGHERPRICED GROWTH STOCKS SUCH AS HOME DEPOT WALMART STORES WALT DISNEY AND DRUG STOCKS A GROUP THAT HAS BEEN HARD HIT FOR MOST OF THIS YEAR THE VALUE STYLE OF INVESTING HAS OUTPERFORMED GROWTH STOCKS FOR THE PAST 12 MONTHS TWENTIETH CENTURY BALANCED HAS JUST ABOUT BROKEN EVEN TO DATE IN ADDITION INVESTORS SHOULD CAREFULLY READ THE FUNDS' REPORTS AND PROSPECTUSES TO DETERMINE HOW MUCH IS INVESTED IN STOCKS AND BONDS OUTSIDE THE US CURRENCY FLUCTUATIONS CAN AFFECT INVESTORS' RETURNS IN INTERNATIONAL STOCKS AND BONDS INTERNATIONAL HOLDINGS HAVE BEEN A BIG PLUS THIS YEAR TAKE FIDELITY BALANCED FUND A FOLLOWER OF THE VALUE SCHOOL OF INVESTING FIDELITY BALANCED HAS A TOTAL RETURN OF 121 FOR THE YEAR TO DATE COMPARED WITH A GAIN OF 107 FOR THE STANDARD & POOR'S 500STOCK INDEX AND 48 FOR THE VANGUARD BOND INDEX FUND BUT FIDELITY BALANCED HAS ONLY 43 IN STOCKS 55 IN BONDS AND 2 IN CASH SO HOW DID THE FUND RACK UP A BIG RETURN FIDELITY PORTFOLIO MANAGER ROBERT HABER SAYS HE FEELS THE US STOCK MARKET IS EXTREMELY OVERPRICED AND EXTREMELY RISKY SO LATE LAST YEAR HE BOUGHT STOCKS IN EUROPE AND JAPAN THAT HE FELT WERE UNDERVALUED HE ALSO LOADED UP ON US ENERGY STOCKS AND BOUGHT GOLDMINING SHARES ALL THREE MAJOR AREAS INTERNATIONAL STOCKS ENERGY STOCKS AND GOLDMINING STOCKS HAVE BEEN STRONG THIS YEAR AND SINCE HE IS A VALUE PLAYER WHO FOCUSES ON CHEAP STOCKS HIS FUND HELD NONE OF THE DRUG STOCKS AND OTHER CONSUMERBRAND STOCKS WHICH WERE HAMMERED DURING MUCH OF THIS YEAR BUT MR HABER CAUTIONS THAT HIS FUND WILL BEHAVE DIFFERENTLY THAN VANGUARD WELLINGTON AND MOST OTHER BALANCED FUNDS HE HAS 45 OF HIS STOCKS OVERSEAS AND ABOUT 40 OF HIS BONDS OVERSEAS IF US STOCKS DRAMATICALLY OUTPERFORM STOCKS IN JAPAN FRANCE AND THE NETHERLANDS AND THE DOLLAR STARTS HEADING BACK UP MY FUND COULD BE HURT HE SAYS IN CONTRAST WELLINGTON HAS ONLY 8 OF ITS STOCKS IN FOREIGN COMPANIES OUR SHAREHOLDERS DON'T LIKE SURPRISES SAYS WELLINGTON MANAGER VINCE BAJAKIAN BOND STRATEGIES ALSO DIFFER SHARPLY AMONG SOME BALANCED FUNDS MOST FUNDS STICK TO US TREASURY AND HIGHQUALITY CORPORATE BONDS BUT KEMPER INVESTMENT PORTFOLIO TOTAL RETURN FUND INVESTS IN SIZABLE AMOUNTS OF JUNK BONDS AND INTERNATIONAL BONDS SOME BALANCED FUND MANAGERS ARE ACTIVE TRADERS OF STOCKS AND BONDS AND OTHERS BUY AND HOLD KENNETH HEEBNER MANAGER OF CGM MUTUAL FUND HAS A TRACK RECORD OF A 162 AVERAGE ANNUAL TOTAL RETURN DURING THE PAST 10 YEARS BUT HE HAS A HIGH TURNOVER RATE OF MORE THAN 100 ALMOST EVERY YEAR DODGE & COX BALANCED FUND RUN BY A COMMITTEE SELDOM TRADES BUT STILL HAS RACKED UP AN AVERAGE ANNUAL TOTAL RETURN OF 144 DURING THE SAME PERIOD EXPENSES OF BALANCED FUNDS AVERAGE 114 OF TOTAL ASSETS ABOUT AVERAGE COMPARED TO OTHER MUTUAL FUNDS SAYS MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL BUT THOSE WHO WANT THE LOWEST EXPENSE 022 CAN BUY THE NEW VANGUARD BALANCED INDEX FUND WHICH CAME OUT LAST NOVEMBER IN THE FUND 60 IS INVESTED IN STOCKS THAT DUPLICATE THE WILSHIRE 5000 STOCK INDEX OR THE ENTIRE US STOCK MARKET AND THE OTHER 40 IS INVESTED IN BONDS THAT REPLICATE THE LEHMAN BROTHERS AGGREGATE BOND INDEX WHICH IS THE ENTIRE US BOND MARKET EXCLUDING JUNK BONDS FOR THOSE WHO DON'T WANT TO RELY ON A MANAGER TO SHIFT THE ALLOCATION BETWEEN STOCKS AND BONDS THEY CAN DO IT THEMSELVES BY BUYING A TOPRATED STOCK FUND AND A TOPRATED BOND FUND THEN THEY CAN CONTROL THE INVESTMENT ALLOCATION AS THEY SEE FIT BY BUYING SEPARATE STOCK AND BOND FUNDS THEY ALSO MAY BE ABLE TO SELECT FUNDS WHOSE COMBINED EXPENSES ARE LOWER THAN THOSE OF MANY BALANCED FUNDS 9305200112 930520 GM SECURES 206 BILLION IN CREDIT LINES WITH BANKS DETROIT GENERAL MOTORS CORP SAID IT SECURED 206 BILLION IN LONGTERM BANK CREDIT LINES COMPLETING THE LARGEST BANK CREDIT PACKAGE EVER AND LOCKING IN A FINANCIAL INSURANCE POLICY AS IT STRUGGLES TO TURN AROUND ITS DOMESTIC OPERATIONS GM SECURED THE BULK OF THE CREDIT LINES FOR UP TO FIVE YEARS A REVERSAL OF ITS PAST STRATEGY OF NEGOTIATING ONEYEAR DEALS GM WHICH SAW ITS BALANCE SHEET AND ITS CREDIT RATINGS BATTERED IN RECENT YEARS WANTED THE MULTIYEAR COMMITMENTS AS A CUSHION AGAINST FURTHER EROSION OF ITS ACCESS TO OTHER SOURCES OF CAPITAL THIS IS A VERY VERY IMPORTANT PIECE OF THE FINANCIAL FOUNDATION IT'S IN PLACE AND NO ONE CAN TAKE IT AWAY FROM US SAID A GM SPOKESMAN THE SPOKESMAN DECLINED TO COMMENT ON THE PRICE GM PAID TO SECURE THE LONGER TERM DEALS EXCEPT TO SAY IT COST SLIGHTLY MORE ON A PERYEAR BASIS THAN THE ONEYEAR DEALS WITH THE HELP OF CHEMICAL BANKING CORP GM ASSEMBLED SIX PACTS INVOLVING 118 BANKS INCLUDING VIRTUALLY ALL MAJOR US CANADIAN EUROPEAN AND JAPANESE FINANCIAL INSTITUTIONS IN ANOTHER DEPARTURE PRESIDENT JOHN F SMITH JR AND OTHER TOP GM EXECUTIVES HELPED WOO THE BANKERS GM SAID IT'S STILL RENEGOTIATING TERMS OF 4 BILLION IN BANK CREDIT LINES FOR SUBSIDIARIES IN EUROPE CANADA AND AUSTRALIA 9305200111 930520 POLITICS & POLICY CLINTON SHORES UP SUPPORT IN HOUSE AS VOTE NEARS ON TAX DEFICIT PACKAGE BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WENT TO THE CAPITOL TO BUTTRESS NERVOUS HOUSE DEMOCRATS IN ADVANCE OF NEXT WEEK'S VOTE ON HIS TAX AND DEFICITREDUCTION PACKAGE WHITE HOUSE AND CONGRESSIONAL LEADERS PREDICTED THAT MR CLINTON WILL HAVE THE VOTES TO GET HIS PLAN ENACTED BUT THE HOUSE VOTE IS LIKELY TO BE A CLOSE ONE AND THE ATTACKS ON THE PACKAGE IN RECENT DAYS BY MODERATE DEMOCRATS FORESHADOW AN EVEN TOUGHER FIGHT IN THE SENATE IN A CLOSEDDOOR CAUCUS AT THE CAPITOL THE PRESIDENT DEFENDED HIS ENERGY TAX AND BLUNTED CONSERVATIVE DEMOCRATS' DEMANDS TO CAP SPENDING ON FEDERAL BENEFITS PROGRAMS SUCH AS MEDICARE STUNG BY RECENT MUCHPUBLICIZED CRITICISM FROM HIS FRACTIOUS PARTY HE URGED THE LAWMAKERS TO UNITE BEHIND HIS PLAN JUST AS REPUBLICANS DID FOR RONALD REAGAN'S ECONOMIC PLAN IN 1981 AND IN FACT THE BIGGEST FACTOR WORKING IN MR CLINTON'S FAVOR IS THE DEMOCRATS' SENSE THAT A DEFEAT WOULD BE DEVASTATING FOR HIS PRESIDENCY AND BY EXTENSION FOR THEIR PARTY WE'VE HAD 12 YEARS TO CRITICIZE REPUBLICAN PRESIDENTS SAID REP BARBARA KENNELLY D CONN NOW WE'VE GOT TO COME TOGETHER THIS IS IMPORTANT FOR THIS PRESIDENT FOR THE PARTY AND FOR THE COUNTRY UNLIKE THE REAGAN PLAN WHICH WAS BUILT ON MASSIVE TAX CUTS THE BILL BEFORE THE HOUSE WOULD RAISE TAXES ABOUT 247 BILLION OVER FIVE YEARS AND CUT SPENDING BY ABOUT 97 BILLION DEMOCRATS ARE WARY OF VOTING FOR THE TAX INCREASES ESPECIALLY BECAUSE MOST IF NOT ALL REPUBLICANS ARE EXPECTED TO VOTE AGAINST THE PACKAGE IF THERE'S NO REPUBLICAN SUPPORT THE DEFECTIONS OF JUST 40 OF THE 257 DEMOCRATS WOULD KILL THE CLINTON PROGRAM THE PRESIDENT ARGUED THAT HIS PLAN WILL PRODUCE AN ECONOMIC RECOVERY IT WILL PRODUCE NEW JOBS AND I BELIEVE WE CAN PASS IT MR CLINTON'S VISIT DID SEEM TO REASSURE A NUMBER OF DEMOCRATS ALTHOUGH NOT ALL WERE READY TO PLEDGE THEIR SUPPORT BOTH IN THE CAUCUS AND IN A SUBSEQUENT MEETING WITH HOUSE AND SENATE LEADERS SOME HOUSE DEMOCRATS SOUGHT ASSURANCES THAT MR CLINTON WOULD DEFEND HIS PLAN VIGOROUSLY NOT ONLY AGAINST REPUBLICANS BUT ALSO AGAINST SOME SENATE DEMOCRATS SEEKING TO MAKE MAJOR CHANGES SUCH AS KILLING THE TAX ON ENERGY CONSUMPTION I TOLD THE PRESIDENT THE ENERGY TAX IS EXTREMELY UNPOPULAR IN MY DISTRICT BUT I WANTED TO HELP HIM RECALLED TEXAS REP CHARLES WILSON IT WOULD PUT ME IN A TERRIBLE POSITION IF WHEN THIS BILL GETS OVER TO THE SENATE THEY DROP THAT TAX THEN MY REPUBLICAN SENATOR WOULD COME TO MY DISTRICT IN THE NEXT ELECTION AND SAY HE'D SAVED THEM FROM IT WHEN I'D VOTED FOR IT MR CLINTON VOWED TO FIGHT FOR THE LEVY IT'S A GOOD PART OF THE PROGRAM AND I THINK WE CAN PASS IT HE TOLD REPORTERS LATER REP WILSON SAID HIS SUPPORT REMAINS SHAKY BUT HOUSE LEADERS WHO JUST THIS WEEK WERE EXPRESSING CONCERN ABOUT THE BILL'S PROSPECTS WERE UNIFORMLY CONFIDENT AFTER MR CLINTON'S APPEARANCE HOUSE SPEAKER THOMAS FOLEY D WASH SAID THE BILL'S CHANCES OF PASSAGE WERE VERY GOOD INDEED HOUSE MEMBERS' RESENTMENT TOWARD THE SENATE AND TOWARD MR CLINTON'S PAST CONCESSIONS TO DEMOCRATS THERE WERE RECURRING THEMES OF YESTERDAY'S SESSION LAWMAKERS GROUSE THAT THEY LOYALLY SUPPORTED MR CLINTON'S EARLIER ECONOMICSTIMULUS PACKAGE ONLY TO SEE HIM COMPROMISE WITH CONSERVATIVE SENATE DEMOCRATS AND ULTIMATELY LOSE NEARLY THE ENTIRE PACKAGE TO A GOP FILIBUSTER MEMBERS ARE VERY CONCERNED THAT LIKE THE STIMULUS BILL THEY'LL GO OUT ON A LIMB AND THEN IT'LL BE CUT OUT FROM UNDER THEM SAID REP KENNELLY THE NERVOUSNESS WAS UNDERSCORED BY THE PRESENCE IN THE CAPITOL YESTERDAY OF 1992 PRESIDENTIAL CANDIDATE ROSS PEROT WHO WAS MEETING WITH HOUSE REPUBLICAN FRESHMEN THEY TOLD ME AND I AGREE WITH THEM IT'S TAX AND SPEND AND THAT'S NOT WHAT THE AMERICAN PEOPLE WANT SAID MR PEROT REFERRING TO THE PRESIDENT'S BUDGET PLAN MR PEROT HIMSELF PROPOSED SIGNIFICANT TAX INCREASES TO REDUCE THE DEFICIT DEMOCRATS TOLD MR CLINTON THEY ARE CONCERNED THAT HE ISN'T DOING A GOOD JOB OF COUNTERING SUCH MESSAGES AND SELLING HIS PLAN TO THE AMERICAN PEOPLE THEIR STRATEGY CALLS FOR EMPHASIZING THAT THE BULK OF THE TAX INCREASES WOULD HIT THE RICHEST AMERICANS AND STRESSING THAT THE BILL CONTAINS LANGUAGE ASSURING THAT THE SPENDING CUTS REALLY WILL BE MADE IN LINE WITH THAT THE DEMOCRATIC STUDY GROUP THE RESEARCH ARM FOR HOUSE DEMOCRATS YESTERDAY RELEASED A STUDY CONCLUDING THAT 63 OF THE BILL'S TAX INCREASES WOULD BE PAID BY FAMILIES WITH INCOMES EXCEEDING 200000 ANNUALLY CONSERVATIVE DEMOCRATS PRESSED THEIR CALL FOR SPENDING CAPS ON FEDERAL ENTITLEMENT PROGRAMS BUT MR CLINTON URGED THEM TO AWAIT HIS HEALTHCARE OVERHAUL PROPOSAL TO TARGET SUCH SPENDING MOST OF THE GROWTH IN ENTITLEMENT SPENDING IS IN THE MEDICARE AND MEDICAID PROGRAMS OTHER DEMOCRATS ARGUE CAPS WOULD HIT SUCH PROGRAMS AS FARM SUBSIDIES TOO HARD REP CHARLES STENHOLM D TEXAS A LEADER IN THE EFFORT TO IMPOSE CAPS TOLD MR CLINTON HE WOULD CONTINUE TO FIGHT FOR THEM BUT HE SAID HE ULTIMATELY WOULD SUPPORT THE PRESIDENT MEANWHILE REP STENHOLM YESTERDAY ALSO JOINED TALKS IN THE SENATE AMONG A SMALL BIPARTISAN GROUP TRYING TO REACH AN ALTERNATIVE DEFICITREDUCTION PACKAGE WITH FEWER TAX INCREASES PERHAPS WITHOUT THE ENERGY TAX ALTOGETHER AND MORE SPENDING CUTS HOWEVER A COUPLE OF PARTICIPANTS SAID THOSE TALKS WERE CLOSE TO COLLAPSE THE LAWMAKERS MOSTLY MEMBERS OF THE SENATE FINANCE COMMITTEE HAVE COME UNDER PRESSURE FROM THEIR PARTIES TO DESIST THE DEMOCRATS INCLUDE SENS DAVID BOREN OF OKLAHOMA JOHN BREAUX OF LOUISIANA AND KENT CONRAD OF NORTH DAKOTA THE REPUBLICANS INCLUDE MODERATES JOHN DANFORTH OF MISSOURI DAVID DURENBERGER OF MINNESOTA AND JOHN CHAFEE OF RHODE ISLAND LAWMAKERS AND STAFFERS SAY MR CLINTON HAS CALLED SOME OF THE DEMOCRATS AND TREASURY SECRETARY LLOYD BENTSEN HAS VISITED THEM TO URGE THAT THEY WORK WITH THE ADMINISTRATION THE GOP SENATORS MEANWHILE HAVE BEEN ALL BUT ORDERED BY GOP LEADERS AND POLITICAL STRATEGISTS NOT TO BREAK THE RANKS OF SOLID OPPOSITION THE PRESSURE HAS BECOME SO GREAT ONE PARTICIPANT SAID YESTERDAY THAT EACH SIDE SEEMS TO BE TRYING TO FIND WAYS TO BACK OUT WITHOUT BEING THE FIRST TO DO SO MICHAEL K FRISBY CONTRIBUTED TO THIS ARTICLE 9305200110 930520 DIVIDEND NEWS UNITED FINANCIAL CORP OF SOUTH CAROLINA UNITED FINANCIAL CORP OF SOUTH CAROLINA SAID ITS BOARD APPROVED A 3FOR2 STOCK SPLIT THE THRIFT HOLDING COMPANY'S FIRST SPLIT SINCE GOING PUBLIC IN 1987 THE GREENWOOD SC COMPANY SAID THE SHARES WILL BE DISTRIBUTED JULY 2 TO SHARES OF RECORD JUNE 11 UNITED FINANCIAL CORP WHICH CONTROLS UNITED SAVINGS BANK OF GREENWOOD AND HOME FEDERAL SAVINGS BANK OF SOUTH CAROLINA INC HAS ABOUT TWO MILLION SHARES OUTSTANDING 9305200109 930520 MORE VULNERABLE TO INFLATION BY JAY POWELL TROUBLING SIGNS ARE EMERGING THAT INFLATION MAY BE RETURNING DESPITE THE ABSENCE OF VIGOROUS ECONOMIC GROWTH THE BOND MARKET IS REACTING WITH PREDICTABLE HORROR AND LONGTERM GOVERNMENT YIELDS ARE RETRACING MUCH OF THEIR RECENT PATH TO REACH OVER 7 GOLD PRICES A TRADITIONAL INDICATOR OF INFLATION EXPECTATIONS HAVE JUMPED BY MORE THAN 15 SINCE MARCH THESE MARKET REACTIONS AMPLIFY QUESTIONS ABOUT THE US TREASURY DEPARTMENT'S DECISION EARLIER THIS MONTH TO SHORTEN THE AVERAGE MATURITY OF THE FEDERAL DEBT TREASURY HAS DECIDED TO SHORTEN THE AVERAGE MATURITY TO ABOUT 4 1/2 YEARS FROM TODAY'S LEVEL OF ABOUT SIX YEARS THE GOAL IS TO ACCOMPLISH THIS BY SELLING 30YEAR BONDS TWICE A YEAR INSTEAD OF FOUR TIMES ANNUALLY AND BY CEASING TO SELL SEVENYEAR NOTES ALTOGETHER THE SHORTFALL WILL BE MADE UP BY SELLING SHORTERTERM SECURITIES THE STATED PURPOSE OF THIS MOVE IS TO SAVE MONEY THE TREASURY NOTES THAT SHORTTERM RATES HAVE BEEN LOWER THAN LONGTERM RATES IN RECENT DECADES SO THE ARGUMENT GOES YOU CAN SAVE THE TAXPAYER MONEY BY BORROWING SHORT RATHER THAN LONG IN FACT MOST MONEY MARKET PARTICIPANTS THINK THE DECISION WILL COST THE TAXPAYER MONEY IN THE END THIS WEEK'S INFLATION NEWS HIGHLIGHTS THE DIFFICULTY IN RELYING ON SHORTTERM RATES TO REMAIN LOW EVEN MORE SIGNIFICANTLY IT LOOKS LIKE WASHINGTON HAS IDENTIFIED DEBT MANAGEMENT AS A PAINLESS SOURCE OF BUDGETARY REVENUES WHICH SUGGESTS THAT THIS MAY NOT BE THE GOVERNMENT'S LAST TRIP TO THE WELL THE GOVERNMENT'S SITUATION IS LIKE THAT OF A PRIVATE MORTGAGE BORROWER IN TODAY'S ENVIRONMENT YOU CAN TAKE OUT AN ADJUSTABLE RATE MORTGAGE AT 5 BUT YOU TAKE THE RISK THAT YOUR RATE MAY GO UP TO 11 OR MORE IF SHORTTERM RATES RISE OR YOU CAN LOCK IN A FIXED RATE OF LESS THAN 75 FOR 30 YEARS THE LOWEST RATE SINCE THE 1960S AND BE DONE WITH IT TREASURY WENT FOR THE ARM HISTORY TELLS OF SOME COSTLY DECISIONS ABOUT CHANGING FEDERAL DEBT'S MATURITY PROFILE BETWEEN 1965 AND 1975 DUE TO CONGRESSIONAL FAILURE TO RAISE THE 425 CEILING ON BOND INTEREST RATES NO LONGTERM BONDS WERE ISSUED AS A RESULT THE DEBT'S AVERAGE MATURITY SHORTENED TO ABOUT 25 YEARS FROM NEARLY SIX YEARS THAT EXPOSED THE TAXPAYER TO THE NEED TO ROLL OVER LARGE AMOUNTS OF SHORTTERM DEBT WHEN SHORTTERM RATES ROSE TO UNPRECEDENTED HEIGHTS IN THE LATE 1970S AND EARLY 1980S WE ALL PAID THE PRICE ABOUT 100 BILLION MORE THAN WE WOULD HAVE PAID HAD THE MATURITY REMAINED AT SIX YEARS IN THE EARLY 1980S LONGTERM BONDS PEAKED AT MORE THAN 15 AND THE REAGAN ADMINISTRATION ACTIVELY CONSIDERED SHORTENING OPERATING WITHOUT THE BENEFIT OF A CRYSTAL BALL DEBT MANAGERS DECIDED NOT TO CURTAIL LONGTERM ISSUANCE LONGTERM RATES HAVE SINCE DECLINED BY MORE THAN HALF SO WE NOW KNOW THAT MOVING TO A SHORTERTERM MATURITY STRUCTURE IN 1981 WOULD HAVE SAVED TAXPAYERS MANY BILLIONS TODAY LONGTERM RATES ARE AT 25YEAR LOWS THE FEDERAL GOVERNMENT HAS ENORMOUS ANNUAL FINANCING NEEDS AND TOTAL FEDERAL DEBT IS HIGH AND RISING AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT BUSINESSES AND HOUSEHOLDS ALL OVER AMERICA ARE RUSHING TO LOCK IN LOW LONG RATES UNTIL NOW THE MANTRA OF TREASURY DEBT MANAGERS HAS BEEN TO MINIMIZE FINANCING COSTS OVER THE LONG TERM THAT HAS MEANT KEEPING DEBT MANAGEMENT PREDICTABLE AND IT HAS MEANT SPREADING THE TREASURY'S MASSIVE BORROWING NEEDS WIDELY ACROSS THE MATURITY SPECTRUM UNFORTUNATELY IT APPEARS THAT THIS MONTH'S DECISION WAS NOT BASED ON THESE TRADITIONAL DEBT MANAGEMENT CONSIDERATIONS INSTEAD MANY MARKET PARTICIPANTS ATTRIBUTE THE DECISION TO A DESIRE TO GENERATE APPARENT REVENUES FOR THE CLINTON BUDGET THE MARKET EXPRESSES ITS VIEWS OF FUTURE INTEREST RATES THROUGH THE YIELD CURVE AND THE MARKET SAYS THAT THESE PROJECTED SAVINGS ARE ILLUSORY BUT THE FEDERAL BUDGET LOOKS ONLY AT THE NEXT FIVE YEARS IN THE FANTASY WORLD OF FEDERAL BUDGET ACCOUNTING THAT MEANS THAT THE SUPPOSED SAVINGS ARE QUITE REAL IN THE SENSE THAT THEY CAN BE SPENT OR COUNTED AS DEFICIT REDUCTION THE NOTION OF SHORTENING THE MATURITY TO GENERATE REVENUES FIRST APPEARED IN CLINTON CAMPAIGN DOCUMENTS LAST SUMMER AND HAS SINCE BEEN USED CONSISTENTLY BY CONGRESS AND THE WHITE HOUSE TO SHOW SAVINGS OF MORE THAN 16 BILLION OVER FIVE YEARS IT LOOKS LIKE TREASURY WAS CONSTRAINED AFTER THE FACT TO COME UP WITH A DEBT MANAGEMENT PLAN TO REALIZE THESE SAVINGS IT SEEMS AS THOUGH SHORTTERM POLITICAL AND BUDGETARY CONCERNS WERE GIVEN GREATER WEIGHT THAN THE LONGRUN RISKS TO OUR FINANCES OBVIOUSLY THIS SINGLE EVENT WILL NOT BRING THE REPUBLIC TO ITS KNEES THE REAL QUESTION IS WHERE DOES THIS MANIPULATION OF DEBT MANAGEMENT POLICY END TREASURY SAYS THAT THIS IS A ONETIME CHANGE BUT WILL THAT POSITION HOLD UP THE NEXT TIME THE BUDGET PEOPLE NEED A FEW MORE BILLION DOLLARS IN SAVINGS IT IS LESS PAINFUL IN THE SHORTTERM TO ACHIEVE DEBT MANAGEMENT SAVINGS THAN IT IS TO CUT SPENDING WHICH SOUNDS EASIER FIGHTING WITH CONGRESS TO ELIMINATE A POPULAR SPENDING PROGRAM OR UNILATERALLY SHORTENING THE MATURITY OF THE DEBT WHAT IS TO STOP THE GOVERNMENT FROM CREATING A PROGRESSIVELY LARGER AND SHORTER NATIONAL DEBT AND AN EVER GREATER RISK FOR TAXPAYERS THE TRUTH IS THAT THESE APPARENT SAVINGS ARE NOT FREE THEY CARRY WITH THEM RISKS THAT COULD GROW TO BE VERY SIGNIFICANT OVER TIME FOR EXAMPLE A LARGE CONCENTRATION OF SHORTTERM DEBT COULD UNDERMINE THE FEDERAL RESERVE'S ABILITY OR WILLINGNESS TO RESPOND TO INFLATION DUE TO THE BUDGETARY IMPACT OF HIGHER RATES THIS WOULD RAISE THE CHANCES THAT INFLATION COULD ULTIMATELY GET OUT OF HAND AND ULTIMATELY REQUIRE VERY HIGH SHORTTERM RATES AT GREAT COST TO THE TAXPAYER MR POWELL A MANAGING DIRECTOR AT BANKERS TRUST WAS AN UNDERSECRETARY OF THE TREASURY IN THE BUSH ADMINISTRATION 9305200108 930520 GTE WILL SELL SOME SYSTEMS FOR 11 BILLION CITIZENS UTILITIES IS BUYING OPERATIONS IN 9 STATES BID TO CUT DEBT IS SEEN BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL GTE CORP CONTINUED TO SHED UNWANTED TELEPHONE PROPERTIES AGREEING TO SELL OPERATIONS IN NINE STATES TO CITIZENS UTILITIES CO FOR 11 BILLION GTE STAMFORD CONN HAS BEEN TRYING TO CONSOLIDATE ITS LOCAL PHONE OPERATIONS INTO SEVERAL GEOGRAPHIC AREAS OF THE US AS IT PRUNES ITS NETWORK TO BECOME MORE PROFITABLE THE PROPERTIES ARE LARGELY PHONE SYSTEMS OF THE FORMER CONTEL CORP WHICH GTE SWALLOWED IN A 62 BILLION STOCK SWAP IN 1991 THE DEAL MADE GTE THE LARGEST LOCAL EXCHANGE PHONE COMPANY IN THE US WITH CUSTOMERS IN 40 STATES GTE ALSO HAS BEEN TRYING TO CUT ITS 156 BILLION IN LONG AND SHORTTERM DEBT AND RAISE ITS CREDIT RATINGS WHICH HAVE BEEN HURT BY THE CONTEL MERGER AND ITS INVESTMENTS IN THE VENEZUELAN NATIONAL PHONE COMPANY A GTE SPOKESMAN SAID THE PROCEEDS FROM THE CITIZENS TRANSACTION WILL BE USED TO TRIM DEBT CITIZENS WHICH HAS BEEN LOOKING TO ACQUIRE PHONE PROPERTIES IN SMALL TO MEDIUMSIZED MARKETS APPARENTLY HASN'T ANY SUCH PROBLEMS A DIVERSIFIED UTILITY WITH ELECTRIC GAS AND PHONE HOLDINGS STAMFORDBASED CITIZENS ENJOYS TRIPLEA CREDIT RATINGS CITIZENS CHAIRMAN LEONARD TOW NOTED THAT THE GTE PROPERTIES WILL INCREASE OUR ANNUAL REVENUE TO MORE THAN 1 BILLION FROM 600 MILLION CURRENTLY IN 1991 DR TOW PLEDGED TO DOUBLE CITIZENS' SIZE BY 1996 A CITIZENS SPOKESMAN SAID THE COMPANY WILL PAY GTE IN INSTALLMENTS OVER THE NEXT 15 MONTHS YESTERDAY GTE SHARES ROSE 50 CENTS TO 35125 WHILE CITIZENS A SHARES ROSE 675 CENTS TO 3650 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE THE PROPOSED SALE TO CITIZENS COVERS CUSTOMERS USING 500000 TELEPHONE LINES IN EASTERN ARIZONA MONTANA NEW YORK TENNESSEE UTAH AND WEST VIRGINIA CITIZENS ALSO WILL GET SMALLER PROPERTIES IN CALIFORNIA IDAHO AND OREGON SINCE DECEMBER WHEN GTE SAID IT WOULD STRIP ITSELF OF UNWANTED PHONE OPERATIONS THE COMPANY HAS ANNOUNCED PLANS TO SELL SYSTEMS SERVING ABOUT 800000 LINES IT RECENTLY ANNOUNCED A DEAL TO SWAP SOME PHONE PROPERTIES WITH ALLTEL CORP WHICH IS EXPECTED TO BRING GTE 440 MILLION IN CASH IN THE FOURTH QUARTER GTE ALSO PLANS TO SELL SOME GEORGIA PROPERTIES TO ALLTEL WHICH IS BASED IN LITTLE ROCK ARK WE'VE ADDED ABOUT SEVEN MILLION LINES IN THE LAST FIVE YEARS THROUGH NORMAL ACCESSLINE GROWTH THE MERGER WITH CONTEL AND OUR ACQUISITION OF THE TELEPHONE COMPANY IN VENEZUELA A GTE SPOKESMAN SAID THE CITIZENS TRANSACTION MUST BE APPROVED BY THE FEDERAL COMMUNICATIONS COMMISSION THE US DEPARTMENT OF JUSTICE AND REGULATORY AGENCIES IN EACH PROPERTY'S STATE GTE SAID FOLLOWING THE TRANSACTION'S ANNOUNCEMENT MOODY'S INVESTORS SERVICE CORP PLACED CITIZENS' LONGTERM DEBT UNDER REVIEW FOR A POSSIBLE DOWNGRADE ABOUT 1615 MILLION IN DEBT IS AFFECTED THE RATINGS AGENCY SAID IT WOULD FOCUS ON HOW CITIZENS PLANS TO FINANCE THE ACQUISITION AND HOW IT WILL INTEGRATE THE GTE PROPERTIES INTO ITS SYSTEM 9305200107 930520 FOREIGN EXCHANGE DOLLAR ENDS LOWER ON TRADEGAP DATA AND BROWN'S COMMENTS ABOUT THEM BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED LOWER WEDNESDAY RECOVERING SOMEWHAT LATE IN THE SESSION FROM A PLUNGE TRIGGERED BY A WIDERTHANEXPECTED US TRADE DEFICIT AND COMMENTS SUGGESTING THE CLINTON ADMINISTRATION FAVORS A STRONG YEN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16230 MARKS DOWN FROM 16245 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11065 YEN DOWN FROM 11145 YEN STERLING WAS TRADING AT 15440 UP FROM 15350 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 11057 YEN AND AT 16215 MARKS IF YOU LOOK AT IT NOT MUCH HAPPENED OVERALL BUT WE TRAVELED A LOT OF MILES TO GET HERE SAID SHELDON MATLOW A VICE PRESIDENT AT STANDARD CHARTERED BANK PLC TRADERS SAID US MARCH TRADEBALANCE DATA TOUCHED OFF THE DOLLAR'S EARLY DECLINES PARTICULARLY AGAINST THE YEN BY RENEWING CONCERNS ABOUT THE PACE OF THE US ECONOMIC RECOVERY SUSTAINED INDICATIONS OF US ECONOMIC RECOVERY HAVE BEEN REPEATEDLY IDENTIFIED BY MARKET PARTICIPANTS AS A PREREQUISITE FOR A STRONGER DOLLAR SOON AFTER THE TRADE DATA WERE RELEASED REMARKS BY COMMERCE SECRETARY RON BROWN SENT THE DOLLAR REELING DEALERS SAID COMMENTING ON THE TRADE REPORT MR BROWN SAID MARKETDRIVEN EXCHANGERATE CORRECTIONS WERE ONE TOOL THE US MIGHT USE TO NARROW THE TRADE IMBALANCE WITH JAPAN THE REMARKS REIGNITED CONCERNS IN THE MARKET THAT THE CLINTON ADMINISTRATION FAVORS A STRONG YEN SAID RICK PORTER MANAGER OF CORPORATE TREASURY AT BANK BRUSSELS LAMBERT AS REPORTED THE US TRADE DEFICIT EXPANDED TO 1021 BILLION IN MARCH FROM A REVISED 791 BILLION IN FEBRUARY THE COMMERCE DEPARTMENT REPORTED THE FEBRUARY DEFICIT INITIALLY HAD BEEN REPORTED AT 720 BILLION A SURVEY OF ECONOMISTS BY DOW JONES CAPITAL MARKETS REPORT HAD PROJECTED A 780 BILLION DEFICIT IN MARCH THE MARCH DEFICIT WAS THE LARGEST FOR ONE MONTH SINCE MAY 1989 ADDITIONALLY THE WIDE TRADE DEFICIT WITH JAPAN REMINDED MARKET PARTICIPANTS THAT JAPANESE EXPORTERS PROBABLY WILL BE NET SELLERS OF THE US CURRENCY SAID STANDARD CHARTERED'S MR MATLOW YOU HAVE MORE SELLERS THAN BUYERS BECAUSE JAPANESE EXPORTERS WANT TO CONVERT THEIR DOLLARS BACK INTO YEN HE SAID THE US MARCH TRADE DEFICIT WITH JAPAN WAS 526 BILLION WIDER THAN THE 413 BILLION IN FEBRUARY THE MARCH DEFICIT WAS THE LARGEST SINCE OCTOBER 1987 BUT THE BIGGEST IMPETUS TO SELL THE DOLLAR CAME FROM MR BROWN'S REMARKS TRADERS SAID THE MARKET JUMPED ON THAT AND BOUGHT THE YEN AGAINST ALL MAJOR CURRENCIES SAID ALBERT SORIA FIRST VICE PRESIDENT AT KANSALLIS OSAKE PANKKI A FINNISH BANK PAST COMMENTS BY CLINTON OFFICIALS ENDORSING YEN APPRECIATION WERE INTEGRAL TO THE YEN'S 11 STRENGTHENING AGAINST THE DOLLAR BETWEEN FEBRUARY AND APRIL TRADERS NOTED THE DOLLAR FELL MORE THAN ONE YEN WITHIN AN HOUR OF MR BROWN'S COMMENTS BUT UNCONFIRMED RUMORS OF CENTRAL BANK INTERVENTION TO SUPPORT THE DOLLAR AND FRESH COMMENTS BY US OFFICIALS SEEKING TO CLARIFY WHAT THE COMMERCE SECRETARY HAD SAID THEN SENT THE DOLLAR BOUNDING BACK DEALERS SAID THE FEDERAL RESERVE BANK OF NEW YORK WAS RUMORED TO HAVE CHECKED RATES A PRECURSOR TO INTERVENTION OR ACTUALLY TO HAVE INTERVENED AT AROUND 110 YEN THEY SAID MOREOVER MR BROWN'S SPOKESMAN SAID THE COMMERCE SECRETARY'S REMARKS HADN'T BEEN INTENDED TO SUGGEST THE ADMINISTRATION HAS A FORMAL POLICY OF YEN APPRECIATION IN THE TWO HOURS FOLLOWING THE SPOKESMAN'S REMARKS THE DOLLAR TOOK BACK ALMOST ALL OF ITS GROUND AGAINST THE YEN 9305200106 930520 EUROPEAN ALLIANCE EYED BY AMERICAN AIRLINES DALLAS AMR CORP CHIEF EXECUTIVE ROBERT CRANDALL SAID THAT AMERICAN AIRLINES HAS TALKED WITH A HANDFUL OF EUROPEAN CARRIERS ABOUT FORMING AN ALLIANCE TO BOOST ITS INTERNATIONAL TRAFFIC BUT WHAT FORM SUCH A PARTNERSHIP MIGHT TAKE AND WITH WHOM REMAINS UNCLEAR AMERICAN'S DISCUSSIONS HAVE RANGED FROM EQUITY INVESTMENTS TO COORDINATING MARKETING PLANS AND SCHEDULES AT ONE POINT OR ANOTHER IN THOSE DISCUSSIONS EVERY FEATURE OF EVERY DEAL YOU'VE EVER READ ABOUT HAS BEEN DISCUSSED MR CRANDALL SAID AMERICAN IS BELATEDLY TRYING TO MATCH ITS FINANCIALLY WEAKER RIVALS WHICH HAVE ALLIED THEMSELVES WITH FOREIGN PARTNERS TO INCREASE THEIR MARKETS ABROAD IN THE PAST YEAR BRITISH AIRWAYS HAS ACQUIRED A STAKE IN USAIR GROUP INC AIR CANADA BOUGHT 28 OF CONTINENTAL AIRLINES AND KLM ROYAL DUTCH AIRLINES TIGHTENED ITS TIES TO NORTHWEST AIRLINES AS FOR POTENTIAL PARTNERS AMERICAN HAS TALKED WITH AIR FRANCE LUFTHANSA AG BRITISH MIDLAND AIRWAYS LTD SCANDINAVIAN AIRLINES SYSTEM AND KLM YOU NAME IT WE'VE TALKED TO THEM SAID MR CRANDALL AT A NEWS CONFERENCE AFTER AMR'S ANNUAL SHAREHOLDERS MEETING SO FAR WE HAVEN'T BEEN ABLE TO STRUCTURE A DEAL THAT MAKES SENSE FOR US AND MAKES SENSE FOR A EUROPEAN PARTNER 9305200105 930520 WHO'S NEWS LIGGETT GROUP SELECTS HORRIGAN AS CHIEF EXECUTIVE BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LIGGETT GROUP INC HIRED THE FORMER HEAD OF RJ REYNOLDS TOBACCO CO TO FILL ITS TOP JOB LEFT VACANT WHEN THE AILING TOBACCO COMPANY FIRED ITS CHIEF EXECUTIVE IN MARCH EDWARD A HORRIGAN JR WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF LIGGETT THE TROUBLED TOBACCO SUBSIDIARY OF BROOKE GROUP LTD THE 63YEAROLD MR HORRIGAN IS REENTERING THE TOBACCO INDUSTRY AMID A BLISTERING PRICE WAR THAT MANY TOBACCO EXPERTS FEEL LEAVES LITTLE ROOM FOR LIGGETT IT IS AN UNDERSTATEMENT TO SAY HE HAS HIS WORK CUT OUT FOR HIM SAYS EMANUEL GOLDMAN AN ANALYST WITH PAINEWEBBER INC IN SAN FRANCISCO HE HAS A LOT OF EXPERIENCE BUT THE QUESTION IS WHETHER IT MATTERS IF HORRIGAN IS THERE LIGGETT HAS ONLY 3 OF THE US TOBACCO MARKET ITS PROFIT FELL 43 LAST YEAR TO 526 MILLION ON SALES OF 605 MILLION IN MARCH LIGGETT REMOVED ITS TOP TWO EXECUTIVES AND CLOSED ITS NEW YORK OFFICE LIGGETT ALSO RECENTLY CUT ITS DURHAM NC WORK FORCE BY 27 TO 660 WORKERS BROOKE GROUP LIGGETT'S PARENT HAD A LOSS OF 76 MILLION LAST YEAR IN AN INTERVIEW YESTERDAY MR HORRIGAN SAID IT WOULD BE NAIVE TO SAY THAT BROOKE ISN'T BESET WITH MANY PROBLEMS BUT LIGGETT IS FUNDAMENTALLY A SOUND COMPANY WHILE AT THE RJ REYNOLDS UNIT OF RJR NABISCO HOLDINGS CORP MR HORRIGAN WAS PERHAPS BEST KNOWN AS THE CHAMPION OF PREMIER RJR'S FAILED SMOKELESS CIGARETTE HE ALSO WAS INVOLVED IN THE SUCCESSFUL TURNAROUND OF THE CAMEL BRAND BUT HE ISN'T LIKELY TO TRY A SIMILAR COMEBACK AT LIGGETT WHICH LAST YEAR SPENT MILLIONS IN AN ILLFATED EFFORT TO RELAUNCH CHESTERFIELD ONE OF ITS FADING FULLPRICED BRANDS MR HORRIGAN CALLED THE ATTEMPT TO REVIVE CHESTERFIELD FOLLY AND SAID HE WOULD CONCENTRATE ON BOLSTERING LIGGETT'S DISCOUNT BRANDS HE SAID LIGGETT WILL CARVE OUT A VIABLE AND PROFITABLE NICHE IN THE SAVINGS SEGMENT LIGGETT WHICH PIONEERED THE DISCOUNT SEGMENT IS IN THE PROCESS OF INTRODUCING EAGLE A NEW DISCOUNT BRAND MR HORRIGAN SAID HE IS TAKING THE JOB FOR THE CHALLENGE IT CLEARLY ISN'T FOR THE MONEY MR HORRIGAN A FORMER VICE CHAIRMAN OF RJR NABISCO WAS A TOP LIEUTENANT OF FORMER RJR CHIEF EXECUTIVE F ROSS JOHNSON AND A MEMBER OF THE MANAGEMENTLED TEAM THAT PURSUED AN UNSUCCESSFUL BUYOUT ATTEMPT FOR RJR MR HORRIGAN RESIGNED IN 1989 AFTER IT BECAME CLEAR HE WOULDN'T GET THE TOP JOB WHEN KOHLBERG KRAVIS ROBERTS & CO ACQUIRED RJR MR HORRIGAN'S RESIGNATION TRIGGERED A MULTIMILLIONDOLLAR GOLDEN PARACHUTE 9305200104 930520 TECHNOLOGY IBM UNVEILS SOFTWARE PRICING SCHEME TO REVIVE COLLAPSING MAINFRAME SALES BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP ANNOUNCED A SWEEPING NEW SOFTWARE PRICING SCHEME IN A BID TO TURN AROUND COLLAPSING SALES AND LEASING OF ITS MAINFRAME COMPUTERS THE MOST NOVEL OF IBM'S PLANS IS A MEASURED USAGE APPROACH THAT WILL BILL CUSTOMERS FOR THEIR ACTUAL USE OF A MAINFRAME COMPUTER AND THE NUMBER OF TIMES THE SOFTWARE IS CALLED ON WHEN IMPLEMENTED NEXT YEAR IBM WILL RECEIVE MEASUREMENTS OF COMPUTER USAGE THROUGH A SOFTWARE METER THAT'S NOW IN THE DESIGN STAGES WITH THE HELP OF 800 CUSTOMERS IBM WILL THEN BILL THE USER ACCORDINGLY MUCH AS PHONE COMPANIES BILL FOR THE NUMBER OF CALLS A CUSTOMER MAKES IBM'S CURRENT PRACTICE SET IN THE 1980S IS TO BILL CUSTOMERS BASED ON THE POWER OF THE MACHINES THEY OPERATE REGARDLESS OF USAGE AS IBM AND OTHERS PRODUCED MORE POWERFUL COMPUTERS AND SOFTWARE PROGRAMS WERE MULTIPLYING CUSTOMERS WERE GETTING SOCKED WITH HUGE PRICE INCREASES EVEN IF THEY WEREN'T ABLE TO TAKE FULL ADVANTAGE OF EVERY NEW CAPACITY AND WEREN'T EXPLOITING THE SOFTWARE AS A RESULT CUSTOMERS WERE RELUCTANT TO BUY THE NEXT GENERATION OF HARDWARE SAYS MARTIN CLAGUE GENERAL MANAGER OF CONSULTING SOFTWARE SERVICES FOR IBM THE STRATEGY IS PRIMARILY AIMED AT MAKING MAINFRAME USERS HAPPIER ACCORDING TO IBM CUSTOMERS HAVE TOLD US THEY WANT VALUE RELATED TO PRICE MR CLAGUE SAYS WE WERE LOSING SOME CUSTOMERS AND OTHERS WERE GETTING PRETTY MAD AT US MR CLAGUE SAYS HE CAN'T FORECAST THE EFFECT OF THE PRICING CHANGES ON REVENUE OR PROFIT OVERALL BUT HE EXPECTS A WASH INITIALLY HEAVY USERS WILL BE PAYING MORE AND SMALLER USERS WILL PAY LESS HE SAYS I'LL BE HAPPY IF IT COMES OUT EVEN HE ADDS THE MAINFRAME COMPUTER BUSINESS IS IBM'S LARGEST AND MOST PROFITABLE GENERATING ALMOST 20 BILLION OF THE COMPANY'S 64 BILLION IN REVENUE LAST YEAR OVERALL IBM IS PLANNING FIVE CHANGES IT HOPES WILL ENCOURAGE CUSTOMERS AND OTHERS TO BUY THE NEW HARDWARE EVEN IF THEY AREN'T GOING TO USE ALL ITS CAPACITY RIGHT AWAY IN ADDITION TO MEASURED USAGE IT WILL EXPAND A RELATIVELY NEW SYSTEM THAT CHARGES BASED ON THE NUMBER OF USERS OR WORKSTATIONS ON A PROCESSOR IBM ALSO IS STABILIZING OR LOWERING PRICES IN OTHER AREAS AS AN INCENTIVE FOR BUYING NEW SOFTWARE AND HARDWARE IT'S CANCELING PRICE INCREASES SCHEDULED FOR JULY FOR THE USE OF SOFTWARE ON ITS NEWLY INTRODUCED MAINFRAMES WHICH ARE NOW THE MOST POWERFUL IN IBM'S MAINFRAME LINE THERE WON'T BE ANY OVERALL SOFTWARE PRICE INCREASES IN AUGUST WHEN SUCH CHANGES ARE USUALLY ANNOUNCED AND IBM WILL ESTABLISH PRICING CONTRACTS WITH CUSTOMERS WHO WANT TO EXPAND THEIR HARDWARE AND SOFTWARE THAT ALSO WILL HELP THEM CUSTOMIZE THEIR COSTS ACCORDING TO THEIR REQUIREMENTS THESE CONTRACTS LIKELY WILL INCLUDE SOME PRICE INCENTIVES IBM ANNOUNCED ITS PLANS YESTERDAY TO 200 CUSTOMERS GATHERED IN TOWNMEETING STYLE IN CHANTILLY VA WITH ITS NEW CHAIRMAN LOUIS V GERSTNER AND OTHER TOP IBM BRASS WHILE MR CLAGUE SAYS THE PRICING PLAN HAS BEEN IN THE WORKS FOR SEVERAL MONTHS AND WASN'T INITIATED BY MR GERSTNER THE TONE AND TIMING OF THE MEETING WERE INTENDED TO CONVINCE IBM'S CUSTOMERS THAT IT'S INTERESTED IN THEIR BUSINESS AND WANTS TO SERVE THEM BETTER LARRY BACON SENIOR VICE PRESIDENT AT TRAVELERS CORP HARTFORD CONN SAYS HE THINKS THE NEW STRATEGY IS A STEP IN THE RIGHT DIRECTION PEOPLE ARE LOOKING FOR FAIRNESS IN PRICING HE SAYS 9305200103 930520 WHO'S NEWS TWO GEICO EXECUTIVES ARE NAMED TO OFFICE OF THE PRESIDENT CEO WASHINGTON ANTICIPATING THE RETIREMENT NEXT YEAR OF ITS TWO TOP OFFICERS GEICO CORP SAID IT WAS IMPLEMENTING A SUCCESSION PLAN IN PART BY NAMING TWO YOUNGER EXECUTIVES TO IMPORTANT NEW ROLES WITH PRESIDENT TITLES WILLIAM M SNYDER REMAINS CHAIRMAN EDWARD H UTLEY WHO BEFORE THE REORGANIZATION WAS THE SOLE PRESIDENT WAS NAMED VICE CHAIRMAN BOTH ARE 63 YEARS OLD MR SNYDER EXPECTS TO RETIRE IN JULY 1994 AND MR UTLEY FOUR MONTHS LATER GEICO SAID THE AUTOMOTIVE AND HOMEOWNERS INSURANCE COMPANY NAMED TWO YOUNGER EXECUTIVES TO A NEW OFFICE OF THE PRESIDENT AND CHIEF EXECUTIVE OFFICER THEY ARE OLZA M TONY NICELY 49 WHO WAS NAMED PRESIDENT FOR INSURANCE OPERATIONS AND LOUIS A SIMPSON 56 WHO WAS NAMED PRESIDENT FOR CAPITAL OPERATIONS MR NICELY WAS ALSO NAMED CHAIRMAN OF BOTH GOVERNMENT EMPLOYEES INSURANCE CO THE MAIN UNIT AND ANOTHER SUBSIDIARY GEICO GENERAL AND REMAINS PRESIDENT AND CHIEF EXECUTIVE OF THOSE UNITS BEFORE THE CHANGES MR SIMPSON WAS VICE CHAIRMAN OF THE PARENT COMPANY A GEICO SPOKESMAN SAID THE COMPANY VIEWS THE CHANGES AS PROMOTIONS FOR ALL CONCERNED HOWEVER 9305200102 930520 BUNKER HUNT'S RANCH SOLD TO THE SON OF ROSS PEROT WESTLAKE TEXAS THE LAST BIG CHUNK OF THE NELSON BUNKER HUNT EMPIRE IS GONE THE FALLEN OIL BILLIONAIRE'S ONETIME WEEKEND RETREAT THE CIRCLE T RANCH WAS BOUGHT THIS WEEK BY ANOTHER MONIED TEXAN H ROSS PEROT JR THE SON OF THE ONETIME PRESIDENTIAL CANDIDATE THE SALES PRICE WASN'T DISCLOSED FOR THE 2000ACRE SPREAD IN THIS SEMIRURAL COMMUNITY 30 MILES WEST OF DALLAS ALTHOUGH LOCAL REALESTATE EXPERTS PEG THE VALUE AT ABOUT 20 MILLION THE CIRCLE T RANCH ONE OF THE MOST DESIRABLE PLOTS OF UNDEVELOPED LAND IN NORTH TEXAS OCCUPIES A STRATEGIC POSITION NEAR ALLIANCE AIRPORT A GIANT INDUSTRIALONLY AIRPORT DEVELOPED BY MR PEROT JR THE CIRCLE T GIVES US A NEW DIMENSION AN AREA FOR AN URBAN CENTER OF WORLDCLASS CORPORATE CAMPUSTYPE DEVELOPMENTS SAID MICHAEL BERRY SENIOR VICE PRESIDENT OF HILLWOOD DEVELOPMENT CORP OWNED BY THE YOUNGER MR PEROT 9305200101 930520 US RESERVE ASSETS POSTED RISE IN APRIL WASHINGTON US OFFICIAL RESERVE ASSETS ROSE 127 BILLION IN APRIL TO 7564 BILLION THE TREASURY SAID LAST MONTH'S INCREASE COMPARED WITH A 153 BILLION RISE IN RESERVE ASSETS IN MARCH TO 7438 BILLION THE DEPARTMENT SAID THE NATION'S HOLDINGS OF FOREIGN CURRENCIES INCREASED 973 MILLION IN APRIL TO 4333 BILLION WHILE ITS GOLD RESERVES WERE UNCHANGED AT 1105 BILLION US HOLDINGS OF IMF SPECIAL DRAWING RIGHTS LAST MONTH ROSE 160 MILLION TO 895 BILLION AND ITS RESERVE POSITION AT THE IMF INCREASED 133 MILLION TO 1232 BILLION 9305200100 930520 WHO'S NEWS US SHOE CORP US SHOE CORP CINCINNATI NOEL HORD 46 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE FOOTWEAR OPERATIONS OF THIS SPECIALTY RETAILER OF WOMEN'S APPAREL OPTICAL PRODUCTS AND FOOTWEAR EFFECTIVE IMMEDIATELY HE FILLS A POSITION THAT HAS BEEN VACANT SINCE 1990 BANNUS B HUDSON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE CORPORATION HAS BEEN SERVING AS ACTING PRESIDENT OF THE FOOTWEAR DIVISION MR HORD HAD MOST RECENTLY BEEN GROUP PRESIDENT OF THE NINE WEST AND ENZO ANGIOLINI UNITS OF NINE WEST GROUP INC STAMFORD CONN HIS RESPONSIBILITIES THERE WILL BE ASSUMED BY SUSAN ITZKOWITZ 37 PRESIDENT OF THE NINE WEST DIVISION AND HILLARY FRITZ 37 PRESIDENT OF THE ENZO ANGIOLINI DIVISION 9305200099 930510 COMMODITIES NEW YORK MERC GEARS UP FOR JUNE'S LAUNCH OF ITS AFTERHOURS ELECTRONIC TRADING SYSTEM BY WARREN GETLER AND JEFFREY TAYLOR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK MERCANTILE EXCHANGE THE WORLD'S LARGEST ENERGY FUTURES MARKET IS GEARING UP FOR NEXT MONTH'S LAUNCH OF ITS ACCESS AFTERHOURS ELECTRONIC TRADING SYSTEM ACCESS IS THE SECOND ELECTRONIC SYSTEM TO BE DEVELOPED BY A US FUTURES EXCHANGE EAGER TO STANCH THE LOSS OF BUSINESS TO OVERSEAS MARKETS IF THE EXPERIENCE OF GLOBEX WHICH THE TWO BIG CHICAGO EXCHANGES INTRODUCED LAST YEAR IS ANY GAUGE THE ADJUSTMENT TO AFTERHOURS TRADING MAY BE SLOW NEW YORK MERC OFFICIALS SAY THE NEW SYSTEM WILL PROVIDE BIG OIL COMPANIES REFINERS AND TRADING FIRMS A FLEXIBLE HIGHSPEED SYSTEM TO TRADE OVERNIGHT IN FUTURES AND OPTIONS CONTRACTS FOR CRUDE OIL HEATING OIL AND UNLEADED GASOLINE A PLATINUM FUTURES CONTRACT WILL ALSO BE TRADED WITH ITS LAUNCH SET FOR JUNE 24 THE NEW SYSTEM HAS ALREADY ATTRACTED ABOUT 100 SUBSCRIBERS IN 15 CITIES THERE'S ALSO BEEN REQUESTS FOR TERMINALS IN LONDON WHICH WILL BE INSTALLED AS SOON AS WE RECEIVE APPROVAL FROM THE BRITISH TREASURY AN EXCHANGE SPOKESWOMAN SAID NEW YORK MERC OFFICIALS EXPECT THEIR SHARE OF TECHNOLOGICAL GLITCHES AND OTHER GROWING PAINS BUT THEY SAY THE MOVE IS NECESSARY WE WANT TO FORESTALL THE CONTINUED EROSION OF AMERICAN MARKET SHARE AND TO CAPTURE PRICE MOVEMENT OCCURRING OVERNIGHT IN ENERGY FUTURES SAYS STEPHEN DAFFRON SENIOR VICE PRESIDENT FOR STRATEGIC PLANNING AT THE NEW YORK MERC MR DAFFRON A FORMER WEST POINT ECONOMICS PROFESSOR ASSERTS THE NEW SYSTEM WHICH WAS DEVELOPED IN CONJUNCTION WITH AMERICAN TELEPHONE & TELEGRAPH CO WILL OPERATE SIGNIFICANTLY FASTER THAN GLOBEX IN PROCESSING TRADES GLOBEX IS A JOINT VENTURE OF THE CHICAGO BOARD OF TRADE THE CHICAGO MERCANTILE EXCHANGE AND REUTERS HOLDINGS PLC THEY'RE USING 1987 TECHNOLOGY WE'RE USING STATEOFTHEART 1993 SYSTEMS THAT ARE NOT RELIANT ON A MAINFRAME COMPUTER ENVIRONMENT MR DAFFRON SAID A MAINFRAME'S DISADVANTAGE HE EXPLAINED IS THAT IT CANNOT PERFORM MULTIPLE TASKS SIMULTANEOUSLY WHILE A SYSTEM INVOLVING SEVERAL SMALLER COMPUTERS SUCH AS THE 22 MILLION NETWORK BEING IMPLEMENTED AT THE NEW YORK MERC CAN BE INTEGRATED INTO A COMPLEX TRADING SYSTEM SUCH AS ACCESS ONE TRADER WHO PARTICIPATED IN A TRIAL RUN OF THE SYSTEM LAST WEEK SAID HE THOUGHT THAT ACCESS WOULD GAIN A LARGE FOLLOWING BUT HE PREDICTED IT WOULD TAKE TIME FOR MEMBERS USED TO THE FLOORTRADING TRADITION TO ADAPT TO SCREEN TRADING PERSONALLY I FOUND WORKING WITH THE KEYBOARD A PROBLEM THE TRADER SAID ASKING NOT TO BE IDENTIFIED I THINK A MOUSEBASED SYSTEM WOULD BE QUICKER WITH A MOUSE YOU COULD JUST POINT TO CRUDE OIL OR WHATEVER YOUR CHOICE MAY BE ON THE SCREEN AND BOOM THE TRADE'S MADE WITH THE CURRENT SETUP YOU HAVE TO TYPE FOUR KEYSTROKES FOR JUNE CRUDE AND EVEN MORE FOR AN OPTION THAT CAN DELAY EXECUTION IF YOU WANT TO MOVE QUICKLY MR DAFFRON SAID HIS STAFF IS EXPLORING THE USE OF A MOUSE ANOTHER TRADER SAID HE THOUGHT THAT ACCESS WOULD NOT TAKE OFF IN ANY MAJOR WAY UNTIL GREATER PRICE VOLATILITY RETURNED TO THE CRUDE OIL MARKET WHICH FOR MONTHS HAS BEEN TRADING IN A NARROW RANGE AROUND 20 A BARREL THE ACCESS SYSTEM IS CUSTOM DESIGNED FOR NEW YORK MERC ENERGY TRADERS MR DAFFRON SAID IN THAT THE SCREENS ARE SET UP FOR ARBITRAGE TRADING BETWEEN CRUDE OIL AND PETROLEUM PRODUCTS SUCH AS GASOLINE THE MERC'S COMPETITORS DON'T HAVE OR NEED THAT CAPABILITY BECAUSE THEIR FUTURES PRODUCTS AREN'T INTERTWINED SO CLOSELY HE SAID ACCESS AND GLOBEX WON'T COMPETE DIRECTLY BECAUSE THE SYSTEMS OFFER DIFFERENT SETS OF FUTURES CONTRACTS GLOBEX HAS A MENU OF STRICTLY FINANCIAL FUTURES AND OPTIONS MANY OF THE FUTURES FIRMS THAT NOW TRADE AND ACT AS BROKERS ON GLOBEX ALSO PLAN TO PARTICIPATE IN ACCESS FOR INSTANCE LINDWALDOCK FUTURES INC A CHICAGO DISCOUNT FUTURES BROKERAGE FIRM THAT HAS AN OVERNIGHT STAFF OF ABOUT 16 PEOPLE TO HANDLE TRADE ORDERS WILL BE READY TO TAKE ORDERS ON ACCESS FROM DAY ONE SAYS RON GOLDING SENIOR VICE PRESIDENT ACCESS SEEMS TO BE AIMING AT THE BIG COMMERCIAL TRADER MR GOLDING ADDS BUT WHAT WE'VE FOUND WITH GLOBEX IS THAT THE SMALL INVESTOR LIKES TO TRADE IT AS WELL AS THE BIG GUY SOMETIMES AT NIGHT PEOPLE TRADE THE GLOBEX CONTRACTS FOR FUN THE SAME MAY BE TRUE OF ACCESS AFTER STARTING SLOWLY TRADING ON GLOBEX GOT A MAJOR BOOST WHEN THE FRENCH FUTURES EXCHANGE MATIF JOINED THE SYSTEM IN MARCH AVERAGE DAILY VOLUME ON GLOBEX SURGED TO 6911 CONTRACTS IN MARCH AND 6664 IN APRIL FROM 2935 IN FEBRUARY THE TWO CHICAGO EXCHANGES OFFER THEIR MOST POPULAR FUTURES CONTRACTS ON GLOBEX INCLUDING THOSE BASED ON US TREASURY BONDS AND EURODOLLARS OR SHORTTERM INTEREST RATES MATIF TRADES FUTURES AND OPTIONS CONTRACTS BASED ON FRENCH INTEREST RATES AND STOCKS THE BIGGEST MATIF CONTRACT NOW OFFERED ON GLOBEX IS ITS PIBOR SHORTTERM FRENCH INTERESTRATE CONTRACT BUT MATIF WILL SOON ADD ITS BIG FRENCH BOND FUTURES CONTRACT ALTHOUGH THE GLOBEX SYSTEM NOW HAS 280 FUNCTIONING TRADING TERMINALS WORLDWIDE ONLY THE 83 GLOBEX TERMINALS IN PARIS CAN NOW BE USED TO TRADE MATIF CONTRACTS ONE REASON THAT GLOBEX VOLUME IN MATIF PRODUCTS SURGED SO QUICKLY IS THAT THE FRENCH EXCHANGE HAS A MONOPOLY ON ITS OWN CONTRACTS WHILE THE CHICAGO MERC AND BOARD OF TRADE COMPETE FOR BUSINESS IN TREASURY BOND AND EURODOLLAR CONTRACTS THEY HAVE NO COMPETITION FOR THEIR PRODUCTS AND WE DO SAYS MERC PRESIDENT WILLIAM BRODSKY WE HAVE COMPETITION DURING GLOBEX TRADING HOURS FOR OUR EURODOLLAR CONTRACT FROM SINGAPORE LONDON AND TOKYO AND THE CBOT BOND CONTRACTS HAVE COMPETITION FROM LONDON AS WELL AN AGREEMENT IS BEING NEGOTIATED THAT WILL ALLOW MEMBERS OF THE CHICAGO MERC AND CBOT TO USE GLOBEX TO TRADE MATIF CONTRACTS AND VICE VERSA EXECUTIVES OF THE THREE EXCHANGES HOPE THE AGREEMENT WILL CONTINUE TO BOOST GLOBEX VOLUME TASK MANAGEMENT INC RIVERSIDE ILL DEVELOPED AND OWNS THE SOFTWARE THAT WILL BE USED IN THE ACCESS AFTERHOURS ELECTRONIC TRADING SYSTEM BEING STARTED BY THE NEW YORK MERCANTILE EXCHANGE NEXT MONTH THE MAY 10 COMMODITIES COLUMN FAILED TO MENTION THE COMPANY AS THE SOFTWARE DEVELOPER FOR THE NEW SYSTEM 9305200098 930520 LETTERS TO THE EDITOR OLD FORESTS LOVE 'EM AND LEAVE 'EM ALONE IN YOUR APRIL 1 PAGE ONE ARTICLE EVEN A LOGGER PRAISED AS SENSITIVE TO ECOLOGY FACES BITTER OPPOSITION YOU STATE THAT BIG CREEK LUMBER ONLY PLANS TO LOG FOUR OLD TREES PER ACRE ON THEIR BUTANO SITE YOU FAILED TO POINT OUT THAT THERE ARE ONLY 4 TO 6 OLDGROWTH TREES PER ACRE THAT ARE NOW ON THAT 1200 ACRE SITE BIG CREEK WILL BE LOGGING ALMOST ALL THE OLDGROWTH TREES WHICH ARE 4 TO 10 FEET IN DIAMETER ACCORDING TO DALE HOLDERMAN A REGISTERED PROFESSIONAL FORESTER IN BIG CREEK LUMBER YOU HAVE CONFUSED THE DEBATE OVER SUSTAINABLE FORESTRY PRACTICES WITH THE DEBATE OVER PROTECTION OF THE LAST OF THE REMAINING OLDGROWTH TREES IN THIS STATE I BELIEVE YOU HAVE DONE A DISSERVICE BY ATTEMPTING TO PRESENT A SMALL SNAPSHOT OF OUR FORESTRY DEBATE IN A MANNER THAT CAN ONLY BE CALLED CONFUSING AT BEST WHAT IS NEEDED IN THE MONTHS OF CONTROVERSY TO COME IS A SOLUTION THAT IS BASED ON VALID BIOLOGICAL SCIENCE HONEST ECONOMIC ASSESSMENT AND A STRICT APPLICATION OF OUR NATION'S ENVIRONMENTAL LAWS A TRUE LASTING SOLUTION MUST COVER THE FULL GEOGRAPHICAL RANGE OF THE ANCIENT FOREST ECOSYSTEM YOUR HEADLINE REFLECTS THE ATTITUDES OF BOTH SIDES IN MORE THOUGHTFUL MOMENTS BOTH SIDES OF THE BUTANO CREEK WATERSHED CONTROVERSY WOULD AGREE BUD MCCRARY IS NOT IN THE BUSINESS OF DESTROYING GOOD LAND HE IS PROUD OF HIS GOOD STANDING IN THE COMMUNITY AND IT IS OBVIOUS THAT HE HAS AN ATTITUDE OF STEWARDSHIP THAT IS RARE AMONG TIMBER EXECUTIVES THE VAST MAJORITY OF ENVIRONMENTALLY CONSCIOUS CITIZENS ARE NOT ASKING FOR WAR BUT SIMPLY FOR SOUND AND HEALTHY ENVIRONMENTAL POLICY IT IS REGRETTABLE THAT SUCH AN ALLORNOTHING ATTITUDE EXISTS ON BOTH SIDES BECAUSE OF THE WAY FORESTRY IS CURRENTLY REGULATED CONTINUED CUTTING AND DISAPPEARANCE OF OLDGROWTH IS ALMOST ALWAYS THE OUTCOME MANY OF THE REBUTTALS TO MR MCCRARY'S ARGUMENTS ARE BASED UPON DIFFERING SCHOOLS OF THOUGHT IN FOREST MANAGEMENT BUT THERE IS NO NEED TO OFFER JARGON JUST SIMPLE MATH IF MR MCCRARY IS ALLOWED TO CUT FOUR OLD TREES PER ACRE HE WILL TAKE 16000 TREES LOOKING OUT OVER THE BEAUTIFUL FORESTED SLOPES OF BUTANO EVEN AN AMATEUR NATURALIST WOULD CONCLUDE THAT THIS NUMBER FAR EXCEEDS THE AMOUNT OF OLD GROWTH LEFT ON THE BUTANO TRACT THE MARKET VALUE OF THIS INCREASINGLY RARE COMMODITY SHOULD HELP MR MCCRARY MAKE HIS BIG PAYMENTS YOUR ARTICLE EXPOSES THE NUTTINESS PREVAILING AT THE EXTREME EDGE OF THE ENVIRONMENTAL MOVEMENT WHEN A SIERRA CLUBBER ARGUES THAT IT'S IMMORAL TO CUT A TREE I BELIEVE WHAT HE'S REALLY CONTENDING IS THAT HUMANKIND IS AN INTERLOPER ON THE PLANET AND THAT THERE IS NO CRIME GREATER THAN TURNING A NATURAL RESOURCE TO PEOPLE'S USE AND MAKING A YIKES PROFIT IN THE PROCESS I'M CONFIDENT THE FANATIC OPPONENTS OF LUMBERING DO NOT LIVE IN HOMES BUILT WITH ANY LUMBER OWN NO WOODEN FURNITURE AND MAKE NO USE OF PAPER PRODUCTS 9305200097 930520 TAXABLE FUND YIELDS CHANGED LITTLE ASSETS OF MONEY FUNDS FELL NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS CHANGED LITTLE WHILE ASSETS FELL IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD INCHED UP TO 264 FROM 262 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 598 TAXABLE FUNDS TRACKED BY THE ASHLAND MASS NEWSLETTER DECLINED BY 258 BILLION TO 48875 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS TOOK 473 BILLION OUT WHILE RETAIL INVESTORS ADDED 216 BILLION IN ASSETS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 64 DAYS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS CREPT TO 260 FROM 259 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD SLIPPED TO 261 FROM 262 WHILE THE AVERAGE 30DAY COMPOUND YIELD EASED TO 264 FROM 265 YIELDS ON TAXFREE FUNDS ROSE IN THE LATEST WEEK THE AVERAGE SEVENDAY COMPOUND YIELD FOR INSTANCE INCREASED TO 203 FROM 196 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 282 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 294 FOR SOMEONE PAYING 31 IN TAXES MEANWHILE ASSETS OF 322 TAXEXEMPT FUNDS SLIPPED TO 9943 BILLION A DECLINE OF 1723 MILLION ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY REMAINED AT 48 DAYS 9305200096 930520 WHO'S NEWS SEAFIELD CAPITAL CORP SEAFIELD CAPITAL CORP KANSAS CITY MO P ANTHONY JACOBS 51 YEARS OLD FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE INSURANCE AND HEALTHCARE SERVICES HOLDING CONCERN HE SUCCEEDS W THOMAS GRANT II 42 THE COMPANY'S CHIEF EXECUTIVE OFFICER WHO WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN AS CHAIRMAN MR GRANT SUCCEEDS HIS FATHER WD GRANT 76 WHO RETIRED JAMES R SEWARD 40 FORMERLY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED EXECUTIVE VICE PRESIDENT HE CONTINUES AS THE COMPANY'S CHIEF FINANCIAL OFFICER 9305200095 930520 INTERNATIONAL LONDON EXCHANGE TO PROBE LEAKS OF COMPANIES' PLANS LONDON THE LONDON STOCK EXCHANGE IS INVESTIGATING LEAKS OF INSIDE INFORMATION INVOLVING PENDING STOCK AND BOND ISSUES BY ALLIEDLYONS PLC AND BRITISH AIRWAYS PLC A SPOKESMAN FOR ALLIEDLYONS A LONDON BEVERAGE FOOD AND RETAILING COMPANY SAID THE EXCHANGE HAS ASKED THE COMPANY'S OUTSIDE FINANCIAL ADVISERS TO EXPLAIN WHY INFORMATION ABOUT ITS 200 MILLION 1303 MILLION CONVERTIBLE BOND ISSUE ANNOUNCED YESTERDAY APPEARED IN LONDON NEWSPAPERS ON SUNDAY THE ALLIEDLYONS SPOKESMAN SAID THE COMPANY WILL COOPERATE FULLY WITH ANY INVESTIGATION BUT IS WAITING TO SEE WHAT COMES OUT OF THE CONVERSATION BETWEEN THE STOCK EXCHANGE AND OUR FINANCIAL ADVISERS SIMILARLY A BRITISH AIRWAYS SPOKESMAN SAID THE AIRLINE IS COOPERATING WITH STOCK EXCHANGE INQUIRIES CONCERNING INFORMATION THAT APPEARED IN LONDON NEWSPAPERS ON SATURDAY ABOUT BRITISH AIRWAYS' 442 MILLION STOCKRIGHTS OFFERING WHICH IT FORMALLY ANNOUNCED TUESDAY THE PRESS LEAKS MAY HAVE CONTRIBUTED TO A 21 DROP MONDAY IN THE AIRLINE'S SHARE PRICE SIR COLIN MARSHALL THE AIRLINE'S CHAIRMAN SAID TUESDAY THE EXCHANGE HAS ASKED BRITISH AIRWAYS' OUTSIDE FINANCIAL ADVISERS ABOUT THE MATTER HE ALSO SAID THE COMPANY HAS ASKED ITS OUTSIDE LAWYERS TO LOOK INTO IT 9305200094 930520 WEDNESDAY'S MARKETS STOCKS SOAR BONDS CLIMB IN TOPSYTURVY DAY BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A LATE STOCKMARKET RALLY THAT DROVE THE DOW JONES INDUSTRIAL AVERAGE THROUGH THE 3500 BARRIER CAPPED A WILD TRADING DAY IN THE FINANCIAL MARKETS BONDS REVERSED THEIR RECENT SLIDE TO END SUBSTANTIALLY HIGHER THE GOLD RALLY FADED AND THE DOLLAR ENDED LOWER WHEN THE FRENZY ENDED THE INDUSTRIAL AVERAGE HAD GAINED 5564 POINTS OR 162 TO A RECORD 350003 IN THE NINTHHEAVIEST TRADING DAY EVER ON THE NEW YORK STOCK EXCHANGE BUT MORE IMPORTANTLY TO MANY TRADERS THE INDUSTRIALS HAD RECOVERED FROM A 29POINT DEFICIT IN EARLY TRADING TREASURY BONDS MANAGED AN IMPRESSIVE REVERSAL TOO AFTER DROPPING SHARPLY IN MORNING TRADING THE TREASURY'S BENCHMARK 30YEAR BOND RALLIED TO END WITH A GAIN OF NEARLY 5/8 POINT OR NEARLY 625 FOR EACH 1000 FACE AMOUNT THE RALLY BOUGHT THE YIELD ON THE LONG BOND BACK BELOW THE PSYCHOLOGICALLY IMPORTANT 7 LEVEL BROADER STOCKMARKET MEASURES STILL REMAIN BELOW THEIR ALLTIME HIGHS DESPITE STRONG RALLIES YESTERDAY STANDARD & POOR'S 500STOCK INDEX CLIMBED 725 OR 16 TO 44757 AND THE NASDAQ COMPOSITE INDEX ROARED UP 965 OR 14 TO 69043 TRADERS SAID THE STUNNING MOOD SWINGS IN STOCK AND BOND MARKETS STEMMED FROM RAPIDLY SHIFTING PERCEPTIONS OF INFLATION THE DAY OPENED WITH GLOOMY INVESTORS WORRIED THAT INFLATION WAS MAKING A COMEBACK AND THAT THE FEDERAL RESERVE WAS ON THE VERGE OF RAISING SHORTTERM INTEREST RATES TO COMBAT THAT THREAT INFLATION ANXIETY WAS FUELED BY GOVERNMENT REPORTS SHOWING RISING WHOLESALE AND CONSUMER PRICES AND BY AN UNEXPECTEDLY STRONG SURGE IN GOLD PRICES DURING THE PAST FEW WEEKS THE DAY ENDED WITH INVESTORS BASKING IN THE BELIEF THAT INFLATION IS UNDER CONTROL AND THAT THE FED HAS NO IMMINENT PLANS TO RAISE INTEREST RATES A 10ANOUNCE DROP IN GOLD PRICES FROM THEIR INTRADAY HIGH HELPED ALLAY THOSE INFLATION WORRIES THE STOCK MARKET'S PESSIMISM HAD GOTTEN SO THICK THAT YOU COULD CUT IT WITH A KNIFE SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP PROFESSIONAL TRADERS KNOW THAT WHEN IT GETS THAT BAD A RALLY IS IMMINENT ALL IT TAKES IS SOMETHING TO TOUCH IT OFF RUMORS FLEW ALL DAY BUT THE ONE CONCRETE REPORT THAT TRADERS POINTED TO AS A POSSIBLE TRIGGER WAS TREASURY UNDERSECRETARY LAWRENCE SUMMERS'S REMARKS THAT HE BELIEVES INFLATION ISN'T A SERIOUS WORRY AMONG THE APPARENTLY FALSE RUMORS THAT HELPED FIRE THE RALLY WAS SPECULATION THAT WELLKNOWN FINANCIER GEORGE SOROS WHO RECENTLY MADE A BIG BET THAT GOLD PRICES WOULD RISE HAD STARTED SELLING GOLD TO BUY BONDS WRONG SAID A SOROS OFFICIAL WHO SAID HIS FIRM IS NEITHER SELLING GOLD NOR BUYING BONDS AT ANOTHER POINT WORD SPREAD THAT JEFF VINIK THE MANAGER OF FIDELITY INVESTMENT'S GIANT MAGELLAN FUND HAD SUDDENLY TURNED BULLISH AND WAS PUTTING MILLIONS OF DOLLARS TO WORK IN THE STOCK MARKET NOT SO SAID A FIDELITY SPOKESWOMAN REGARDLESS OF WHAT HAPPENS ON ANY GIVEN DAY WE LIKE TO BE INVESTED IN THE BEST STOCKS AT ALL TIMES AND DON'T TRY TO TIME THE MARKET SHE SAID SOME ANALYSTS SAID THE POWERFUL RALLIES IN STOCKS AND BONDS WERE A PRECURSOR TO A SUBSTANTIAL BULL RUN WHEN YOU HAVE A TUG OF WAR BETWEEN THE BULLS AND BEARS YOU GET THESE CROSSCURRENTS SAID DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST SECURITIES/BUTCHER & SINGER IN RICHMOND VA WE'RE GETTING CLOSE TO THE BULLS TAKING OVER MR HAYS SAID ONE FACTOR BEHIND THE BIG RALLY IN STOCKS WAS THAT BULLISH INVESTOR SENTIMENT RECENTLY HIT THE LOWEST LEVEL SINCE OCTOBER 1990 IN THE SEEMINGLY PARADOXICAL WORLD OF STOCKMARKET ANALYSIS THAT MEANS EVERYONE WHO WANTED TO SELL STOCKS HAD DONE SO AND PLENTY OF EXCESS CASH WAS AVAILABLE TO DRIVE A RALLY WILLIAM C MATTISON JR HEAD TRADER AT GERARD KLAUER MATTISON WAS ONE OF THE EARLY BUYERS YESTERDAY WHEN THE DOW WAS DOWN 28 POINTS THIS MORNING I STARTED LOOKING AROUND FOR STOCKS TO INVEST IN HE SAID ADDING THAT EVERYONE VIEWS EVERY DIP AS AN OPPORTUNITY TO BUY YET HE CONCEDES THAT HE'S UNEASY ABOUT STOCKS INTELLECTUALLY PEOPLE BELIEVE THE MARKET SHOULDN'T BE WHERE IT IS IT SHOULD BE GOING DOWN HE SAID THE FACT THAT IT ISN'T IS DISTURBING PEOPLE IT'S CERTAINLY DISTURBING NED COLLINS HEAD OF TRADING AT DAIWA SECURITIES AMERICA ALTHOUGH HE NOTED THAT THE STOCK MARKET'S GAINS WERE FAIRLY BROADBASED HE SAID THE SHARP FLIPFLOP WAS DISCONCERTING THIS IS THE MOST CONFUSING MARKET FOR EVERYBODY HE SAID BOND TRADERS SAID THEY WERE RELIEVED THAT THE BOND MARKET'S SICKENING PLUNGE OF THE PAST FEW WEEKS FINALLY REVERSED ITSELF CONVINCINGLY THE DAY AFTER THE BENCHMARK TREASURY YIELD CLIMBED ABOVE 7 FOR THE FIRST TIME IN MORE THAN A MONTH AS WE GOT TO THE 7 LEVEL EVERYONE HELD THEIR BREATH BUT IT DIDN'T TRIGGER A REAL PELLMELL SELLOFF SAID DAVID C MUNRO CHIEF US ECONOMIST AT HIGH FREQUENCY ECONOMICS A NEW YORK ECONOMIC CONSULTING FIRM IT DIDN'T CONVINCE MONEY MANAGERS WE'RE IN A NEW WORLD OF RISING INFLATION AND RISING INTEREST RATES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 105 TO 10529 IN MAJOR MARKET ACTION STOCK PRICES SOARED VOLUME TOTALED 3402 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1196 ISSUES ROSE AND 761 FELL BOND PRICES RALLIED THE TREASURY'S 10YEAR ISSUE GAINED NEARLY 1/2 POINT OR ALMOST 5 FOR EACH 1000 FACE AMOUNT TO YIELD 606 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16230 MARKS AND 11065 YEN COMPARED WITH 16245 MARKS AND 11145 YEN TUESDAY 9305200093 930520 FOSTER WHEELER UNITS AMONG FIRMS PICKED FOR US ENERGY JOB CLINTON NJ FOSTER WHEELER CORP SAID THE DEPARTMENT OF ENERGY CHOSE A TEAM OF THREE OF THE COMPANY'S UNITS AS WELL AS AIR PRODUCTS & CHEMICALS INC WESTINGHOUSE ELECTRIC CORP AND GERMANY'S DEUTSCHE BABCOCK ENERGIE UND UMWELTTECHNIK AG TO BUILD A 375 MILLION COGENERATION PLANT THE 95MEGAWATT SECONDGENERATION PLANT WILL BE BUILT AT AN AIR PRODUCTS CHEMICALS MANUFACTURING FACILITY IN CALVERT CITY KY STEAM FROM THE PLANT WILL BE SUPPLIED TO THE AIR PRODUCTS FACILITY AND ELECTRICITY GENERATED FROM THE PLANT WILL BE SOLD TO THE TENNESSEE VALLEY AUTHORITY FOSTER WHEELER SAID THE SECONDGENERATION TECHNOLOGY OF THE PLANT OFFERS SIGNIFICANT POTENTIAL TO REDUCE ENERGY GENERATION COSTS AND LOWER EMISSIONS OF ACIDRAIN GASES 9305200092 930520 BUSINESS BRIEFS GENERAL ELECTRIC CO'S AIRCRAFT ENGINE UNIT RECEIVED AN ORDER FROM JAPAN AIRLINES FOR FIVE JET ENGINES FOR 75 MILLION NATIONAL PIZZA CO AGREED TO ACQUIRE PRIVATELY HELD NRH CORP FOR ABOUT 20 MILLION WELLMAN INC REACHED AN AGREEMENT TO BUY THE BOTTLERECYCLING OPERATION OF DAY PRODUCTS INC A UNIT OF PRIVATELY HELD DAY & ZIMMERMANN INC TERMS WEREN'T DISCLOSED MORRISON KNUDSEN CORP MERGED ITS GOVERNMENT FACILITIES OPERATIONS WITH ITS ENVIRONMENTAL SERVICES OPERATIONS TO FORM AN ENVIRONMENTAL CLEANUP DIVISION HADRON INC REACHED AN AGREEMENT WITH A CHEVRON CORP UNIT TO DESIGN A COMPUTERBASED SIMULATION SYSTEM FOR TESTING AND HIRING OIL REFINERY CONTROL ROOM PERSONNEL ARROW ELECTRONICS INC COMPLETED ITS ACQUISITION OF THE HIGH RELIABILITY ELECTRONIC COMPONENT DISTRIBUTION AND SERVICE BUSINESSES OF ZEUS COMPONENTS INC GROW GROUP INC SIGNED A LETTER OF INTENT TO BUY ZYNOLYTE PRODUCTS CO A UNIT OF STANDARD BRANDS PAINT CO 9305200090 930520 LEISURE & ARTS FILM SHAKESPEARE AS A SUMMER ROMP BY JULIE SALAMON KENNETH BRANAGH HAS MADE MUCH ADO ABOUT NOTHING INTO A GREAT SUMMER PICTURE A GIDDY LIGHTHEARTED POSTBEACH ENTERTAINMENT WHO WOULD HAVE THOUGHT IT LET'S GO FOR A COUPLE OF BEERS AND A LITTLE SHAKESPEARE DON'T WORRY MR BRANAGH HASN'T DONE A SURFER VERSION OF MUCH ADO HE'S JUST RECOGNIZED THAT THIS PARTICULAR SHAKESPEAREAN COMEDYPART OPERATIC MELODRAMA PART FARCE SHOULD BE A KICK NOT SOME LABORIOUS AFTERSCHOOL ASSIGNMENT YOU CAN TELL WHAT KIND OF KICK MR BRANAGH GETS OUT OF SHAKESPEARE RIGHT FROM THE OPENING BEFORE HE SHOWS US A THING HE POPS WORDS UP ON THE SCREEN IT'S AN AMUSING VERSE FROM MUCH ADO THAT MIGHT HAVE BEEN WRITTEN BY SOME 1990S FEMINIST FOLK SINGER INDEED MR BRANAGH PUTS THESE WORDS IN THE SAUCY MOUTH OF HIS WIFE EMMA THOMPSON INSTEAD OF A TRAVELING MINSTREL THE WAY SHAKESPEARE DID TO ONE THING CONSTANT NEVER INTO HEY NONNY NONNY THE SPIRIT OF THAT SONG WITH ITS CLEVER WISDOM AND SLY NONSENSE SETS THE STAGE FOR MR BRANAGH'S VISION OF MUCH ADO ABOUT NOTHING HE WANTS HIS AUDIENCES TO GIGGLE WITH DELIGHT NOT JUST AT WHAT THEY HEAR BUT AT WHAT THEY SEE SO HE OPENS WITH A LANGUID SCENE OF MEN AND WOMEN LOUNGING ON A LUSCIOUS HILLSIDE EATING GRAPES THE PICTURE WAS SHOT ON THE GROUNDS OF A 14THCENTURY ITALIAN VILLA IN THE SUMMER IN A DAZZLING HOT LIGHT THAT ACCENTUATES THE FAIRYTALE FEELING OF THE PIECE THE COSTUMES AND PRODUCTION DESIGN ARE MORE OR LESS TIMELESS THE WOMEN DRESS IN FLOWING WHITE SUMMER DRESSES THE MEN IN BLOUSY SHIRTS AND TIGHT PANTS THE PICNICKERS BAKE IN THE SUN DREAMILY UNTIL THEY RECEIVE THE NEWS THAT FRIENDLY SOLDIERS ARE STOPPING BY FOR A VISIT THE SUNBATHERS START RUNNING TOWARD THE VILLA IN THE DISTANCE THE SOLDIERS APPROACH ON HORSEBACK IN THIS WAY BY INTERCUTTING GALLOPING WOMEN AND GALLOPING HORSES MR BRANAGH SETS THE FILM IN MOTION AND IT NEVER STOPS INDEED MUCH ADO MOVES SO LIGHTLY AND FLUIDLY IT BRINGS TO MIND THE GREAT DISNEY ANIMATED CLASSICS LIKE SNOW WHITE ONLY INSTEAD OF INVENTING A MAGICAL KINGDOM MR BRANAGH AND HIS TECHNICAL CREW USED THE NATURAL BEAUTY OF THE CHIANTI REGION TO CREATE THE ATMOSPHERE OF A PLACE WHERE ANYTHING CAN HAPPEN YET MR BRANAGH HASN'T USED CINEMATOGRAPHER ROGER LANCER'S ACTIVE CAMERA AS A SUBSTITUTE FOR SHAKESPEARE'S WORDS MR BRANAGH HIMSELF ADAPTED THE PLAY FOR SCREEN WITH LOVING ATTENTION TO THE LANGUAGE HE ALSO CHOSE ACTORS WHO COULD SPEAK IT WELL STARTING WITH MS THOMPSON SHE'S PROBABLY BEST KNOWN NOW FOR HER BRIGHT ENDEARING ACADEMY AWARDS SPEECH ACCEPTING HER OSCAR FOR HER LEADING PART IN HOWARDS END BUT HER BEATRICE SHOULD BE REQUIRED SEEING FOR HIGHSCHOOL STUDENTS AND THEIR PARENTS BEATRICE YOU MAY RECALL IS THE BRILLIANT DIFFICULT WOMAN WHO BATTLES IT OUT WITH BENEDICK THEY ARE THE INDEPENDENT SOULS WHO SEE THEMSELVES IN ONE ANOTHER AND DISGUISE THEIR ATTRACTION WITH PRONOUNCEMENTS OF REPULSION THESE DAYS WE WOULD CALL THEM DEEPLY AMBIVALENT DEPENDING ON HOW SHE IS PLAYED THE TART BEATRICE CAN SEEM SCARY OR WONDERFUL MS THOMPSON LETS YOU SEE BOTH ASPECTS THOUGH HER BEATRICE DEFINITELY COMES OUT ON THE SIDE OF WONDERFUL MR BRANAGH IS HER BENEDICK AND HE IS HER EQUAL SLY LIKABLE MOVING FROM NASTY TO NICE IN A FLASH WITHOUT MAKING THE AUDIENCE BLINK THE OTHER CAST MEMBERS HOLD THEIR OWN AND THEN SOME ROBERT SEAN LEONARD THE YOUNG AMERICAN ACTOR WHO PLAYS CLAUDIO IS MAKING A CAREER OUT OF REDEEMING EMBARRASSINGLY NAIVE CHARACTERS HE PLAYED THE TEENAGER FORCED TO BECOME A NAZI IN SWING KIDS HERE HE MANAGES TO MAKE CLAUDIO TOLERABLE HE'S THE CALLOW FELLOW EASILY DUPED INTO BELIEVING HIS FIANCEE CHEATS ON HIM THE NIGHT BEFORE THEIR WEDDING DENZEL WASHINGTON IS NOBLE AND IRONIC AS DON PEDRO CLAUDIO'S MENTOR KATE BECKINSALE IS SUITABLY PRETTY AND TORMENTED AS HERO THE VIRGINAL FIANCEE WHOSE INNOCENCE HAS BEEN UNFAIRLY MALIGNED IN KEEPING WITH THE PRODUCTION'S MERRY SPIRIT MR BRANAGH HAS INJECTED A BIT OF VAUDEVILLE IN THE PERSON OF DOGBERRY THE DIMWITTED CONSTABLE WHO SAVES THE DAY MICHAEL KEATON SEEMS EXHILARATED TO BE FREED FROM THE STRICTURES OF BATMAN HE TURNS DOGBERRY'S MALAPROPISMS INTO COCKEYED POETRY VIDEO TIP KENNETH BRANAGH IS NOW TWO FOR TWO WITH MOVIE ADAPTATIONS OF SHAKESPEARE HIS FIRST WAS HIS 1989 VERSION OF HENRY V A SHREWD SORROWFUL INTERPRETATION THAT EMPHASIZES THE BLOODSHED OF WAR THE EGOISM IT'S QUITE DIFFERENT FROM LAURENCE OLIVIER'S 1944 VERSION WHICH CELEBRATES THE PAGEANTRY THE GLORY BOTH ARE FASCINATING POWERFUL PIECES OF WORK 9305200089 930520 REVIEW & OUTLOOK EDITORIAL ASIDES SOAK THE POOR THE ADMINISTRATION WANTS TO RAISE THE CORPORATE INCOME TAX ON THE THEORY THAT RICH PEOPLE WILL OTHERWISE TRY TO HIDE THEIR PERSONAL INCOME AS CORPORATE INCOME BUT GUESS WHO'LL PAY FOR CLOSING THIS SUPPOSED LOOPHOLE THE POOR OF COURSE ACCORDING TO A NEW STUDY BY DON FULLERTON AND DIANE LIM ROGERS FOR BROOKINGS THE CORPORATE TAX DOESN'T FALL ON RICH SHAREHOLDERS BUT ON POOR CONSUMERS WHO SPEND A LARGE CHUNK OF THEIR INCOMES ON THE PRODUCTS CORPORATE AMERICA MAKES HMMM WASN'T IT RONALD REAGAN WHO USED TO SAY CORPORATIONS DON'T PAY TAXES ONLY PEOPLE PAY TAXES THE STUDY WHICH IS CALLED WHO BEARS THE LIFETIME TAX BURDEN ALSO DISCOVERS THAT TAXES ON CAPITAL FALL NOT JUST ON THE RICH OR HIGH INCOME GROUPS THAT OWN A LOT OF CAPITAL THEY LAND HARD ON ANYBODY WHOSE EARNINGS TEND TO PEAK EARLY IN LIFE AND WHO HAS TO START SAVING SOONER FOR RETIREMENT BY AND LARGE THAT MEANS HOURLY WORKERS THIS STUDY WILL LIKELY STRIKE CLINTON POLICY MAKERS AS PROVOCATIVE WE SUSPECT THAT MOST WORKERS FIGURED IT OUT A LONG TIME AGO 9305200088 930520 COMMODITIES GOLD PRICES FALL BY 180 IN VOLATILE TRADING ERASING EARLIER GAINS IN BUSIEST DAY SINCE '91 BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GOLD FUTURES PRICES RETREATED IN HEAVY VOLATILE TRADING ERASING GAINS OF AS MUCH AS 8 EARLY IN YESTERDAY'S TRADING SESSION AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR JUNE DELIVERY SETTLED AT 37420 DOWN 180 ON THE DAY VOLUME OF GOLD FUTURES TRADING WAS MORE THAN 100000 CONTRACTS THE BUSIEST DAY SINCE JAN 17 1991 JULY PLATINUM WAS DOWN 520 TO 38580 WHILE JULY SILVER FELL 85 CENTS TO 454 AN OUNCE IT WAS LIKE A FREIGHT TRAIN AN EXTREMELY VOLATILE DAY SAID FRED DEMLER METALS ECONOMIST FOR PAINEWEBBER IN NEW YORK THERE WAS SOME PRETTY MASSIVE PROFITTAKING RUMORS FLEW IN COMEX'S GOLD PIT THAT THE FINANCIER GEORGE SOROS WAS UNWINDING GOLDVERSUSBOND TRADES LIQUIDATING HIS WAGERS THAT GOLD PRICES WOULD RISE AND BOND PRICES WOULD FALL MR SOROS ANALYSTS SAY WAS AMONG THE MAJOR INVESTORS WHO HELPED TO SPAWN GOLD'S RECENT RALLY BY BUYING GOLD CONTRACTS LAST MONTH YESTERDAY A SOROS OFFICIAL DENIED THE RUMORS SAYING MR SOROS WAS NEITHER SELLING GOLD NOR BUYING BONDS SINCE MARCH THE PRICE OF COMEX'S ACTIVELY TRADED JUNE GOLD CONTRACT HAS CLIMBED NEARLY 15 FROM A LOW OF 327 AN OUNCE INVESTORS OF ALL SIZES WHO HAVE SPURNED GOLD DURING THE PAST TWO YEARS HAVE RETURNED TO THE MARKET IN FORCE THE COMEX GOLD MARKET OPENED HIGHER YESTERDAY AFTER PRICES ROSE OVERNIGHT ON OVERSEAS CASH MARKETS WAVES OF SELLING BY GOLD PRODUCERS AND OTHERS SOON ERODED THE GAINS HOWEVER ANALYSTS SAID PRODUCERS WERE SELLING TO LOCK IN CURRENT PRICES WHICH ARE HIGHER THAN ANY THEY HAVE SEEN SINCE 1991 FEW ANALYSTS BELIEVE THAT YESTERDAY'S CORRECTION SIGNALS A CHANGE IN THE UPWARD MOMENTUM OF GOLD PRICES HOWEVER A MARKET THAT GOES UP THIS QUICKLY NEEDS SOME TIME TO BREATHE SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH I DON'T THINK THIS DECLINE CHANGES THE PICTURE IT FITS WITHIN A CONTINUING UPWARD TREND AMONG OTHER THINGS SUPPLYANDDEMAND FUNDAMENTALS SUGGEST THAT GOLD SUPPLIES WILL REMAIN TIGHT WHILE A VARIETY OF BIG AND SMALL INVESTORS CONTINUE TO BUY GOLD MR O'NEILL SAID IN OTHER COMMODITY MARKETS YESTERDAY SUGAR SUGAR POSTED A SECOND CONSECUTIVE DAY OF SHARP PRICE DECLINES AS TECHNICAL SELLING CONTINUED TO TUG PRICES LOWER AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE SUGAR FOR JULY DELIVERY WAS DOWN 039 CENT TO 1196 CENTS A POUND AFTER A STRONG RALLY LAST WEEK SUGAR HAS NOW CORRECTED DOWNWARD MORE THAN 125 CENTS IN THE PAST TWO DAYS SELLING BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF MONEY THAT TRADE ON THE BASIS OF THEIR MATHEMATICAL COMPUTATIONS HAS PUSHED SUGAR BELOW EXTREMELY IMPORTANT PSYCHOLOGICAL LEVELS ANALYSTS SAID COMMODITY CHARTS NOW PROJECT CONTINUED DECLINES IN SUGAR PRICES OVER THE NEXT FEW WEEKS ON THE SUPPLYANDDEMAND SIDE CROP PROBLEMS IN CUBA THAILAND AND AUSTRALIA MAY PROMPT HIGHER SUGAR PRICES WHICH USERS WON'T PAY THIS TENTATIVENESS OF DEMAND COULD ALSO BODE ILL FOR PRICES OVER THE NEAR TERM ANALYSTS SAID GRAINS AND SOYBEANS GRAIN FUTURES PRICES FELL ON CONTINUING PROSPECTS THAT THE SPRING'S PERSISTENT RAIN MAY ABATE LONG ENOUGH TO ALLOW FARMERS TO PLANT THEIR CROPS PLANTING IN MANY CORN BELT REGIONS IS BEHIND SCHEDULE BECAUSE OF THE WET WEATHER BUT PRIVATE FORECASTING COMPANIES ARE PREDICTING A GRADUAL DRYING TREND FARMERS TRADITIONALLY MUST COMPLETE CORN PLANTING BY EARLY JUNE OR FACE REDUCED YIELDS CORN FOR JULY DELIVERY WAS DOWN THREE CENTS TO 22625 A BUSHEL WHILE JULY SOYBEANS FELL 4 1/2 CENTS TO 60050 ENERGY CRUDE PRICES FELL ON TECHNICAL FACTORS SURROUNDING TODAY'S EXPIRATION OF THE JUNE CRUDE CONTRACT AND ON BEARISH INVENTORY NEWS MEANWHILE PETROLEUM PRODUCTS FUTURES PRICES WERE GENERALLY HIGHER IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE THE MOVE IN PRODUCTS WAS FUELED SOMEWHAT BY THE BULLISHNESS OF THE INVENTORY REPORT OUT THIS WEEK FROM THE AMERICAN PETROLEUM INSTITUTE HEATING OIL FOR JUNE ROSE 024 CENT A GALLON TO SETTLE AT 5404 CENTS JUNE GASOLINE SHOWED A BIT MORE STRENGTH REFLECTING THE API REPORT AND THE APPROACH OF THE MEMORIAL DAY WEEKEND THE TRADITIONAL DEBUT OF THE SUMMER DRIVING SEASON IN THE US THE CONTRACT GAINED NEARLY HALF A CENT 046 CENT TO CLOSE AT 5912 CENTS A GALLON CRUDE OIL FOUND NO SUPPORT IN THE API STATISTICS WHICH SHOWED AN UNEXPECTED JUMP IN US CRUDE STOCKS JUNE CRUDE LOST 19 CENTS A BARREL TO FINISH AT 1915 A BARREL NATURAL GAS FOR JUNE LOST 34 CENTS TO FINISH AT 2315 PER MILLION BRITISH THERMAL UNITS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET 9305200087 930520 CFTC SAYS EXCHANGE MAY TRADE CONTRACTS FOR CHEDDAR CHEESE WASHINGTON THE COMMODITY FUTURES TRADING COMMISSION VOTED TO PERMIT THE COFFEE SUGAR AND COCOA EXCHANGE TO TRADE A CHEDDAR CHEESE FUTURES CONTRACT THE UNIT OF TRADING FOR THE FUTURES CONTRACT WILL BE 40000 POUNDS OF CHEDDAR CHEESE IN 40POUND BLOCKS THE CONTRACT SPECIFIES THAT THE CHEESE MUST RECEIVE A GRADE A RATING FROM THE AGRICULTURE DEPARTMENT AND BE BETWEEN FOUR AND 30 DAYS OLD CFTC OFFICIALS SAID GRADE A CHEDDAR CHEESE IN 40POUND BLOCKS IS THE BENCHMARK FOR PRICING CHEDDAR CHEESE IN THE US CASH MARKET IN RECOMMENDING APPROVAL OF THE CONTRACT THE CFTC STAFF SAID IT COULD BE USED BY PARTICIPANTS IN THE CHEESE MARKET TO HEDGE THE PRICE OF CHEDDAR CHEESE OR FOR PRICE DISCOVERY IN OTHER ACTION THE CFTC VOTED TO PERMIT THE MINNEAPOLIS GRAIN EXCHANGE TO TRADE A FROZEN SHRIMP FUTURES CONTRACT THE CONTRACT WILL BE BASED ON 5000 POUNDS OF RAW WHITE HEADLESS SHRIMP FROZEN IN BLOCKS AND STORED IN COLD STORAGE WAREHOUSES THE SHRIMP MUST HAVE A USDA GRADE A RATING WITH A SIZE COUNT OF BETWEEN 31 AND 70 SHRIMP PER POUND THE CFTC SAID THE PROPOSED FUTURES CONTRACT IS DESIGNED TO REFLECT THE CASH MARKET FOR IMPORTED SHRIMP WHICH ACCOUNTS FOR ABOUT 70 OF US SHRIMP CONSUMPTION AS WITH THE CHEESE FUTURES THE CFTC SAID THE CONTRACT COULD BE USED TO HEDGE AGAINST PRICE FLUCTUATIONS IN THE SHRIMP MARKET AND AS A MEANS OF PRICE DISCOVERY 9305200086 930520 MARKETSCAN MARKET GROWS FERTILE FOR PREGNANCY TESTS BY KATHLEEN DEVENY CALL THEM CREATIVE OR MERELY CRASS BUT A SERIES OF COMMERCIALS FOR HOME PREGNANCY TEST KITS THAT SHOW THE ACTUAL MOMENT WHEN THREE COUPLES FIND OUT WHETHER THEY ARE HAVING A BABY HAVE GENERATED CONSUMER RESPONSE THE LURE IS A SLICE OF LIFE AND NOT ALWAYS A HAPPY ONE FOR EXAMPLE A COMMERCIAL FOR WARNERLAMBERT CO'S EPT BRAND SHOWS A TEARY SCENE IN WHICH HELEN AND NICK PADOVAN A REAL COUPLE IN THEIR 30S FIND OUT HELEN ISN'T PREGNANT AFTER ALL THIS YOUARETHERE MARKETING APPROACH ALONG WITH IMPROVED TECHNOLOGY AND HEALTHY FERTILITY RATES HAVE HELPED MAKE PREGNANCY TEST KITS ONE OF THE NATION'S FASTESTGROWING HEALTH AND BEAUTYCARE CATEGORIES AND THE MARKET SEEMS POISED TO EXPAND FURTHER CHANGING SOCIAL MORES MORE OLDER WOMEN SEEKING TO HAVE CHILDREN AND INCREASING NUMBERS OF SINGLE MOTHERS ARE MAKING THE NOTION OF TAKING A PREGNANCY TEST IN THE PRIVACY OF ONE'S OWN BATHROOM MORE DESIRABLE THAN EVER WE'VE GONE FROM A TIME IN ONE OR TWO GENERATIONS WHEN CHILDBEARING WAS CIRCUMSCRIBED BY SPECIFIC SOCIAL RULES TO A WORLD IN WHICH THERE ARE MANY MORE OPTIONS SAYS PETER MORRISON A DEMOGRAPHER AT RAND CORP I WOULD SAY THAT THIS IS A MARKET IN FLUX BECAUSE OF RAPID SOCIAL CHANGE SALES OF PREGNANCY TEST KITS IN SUPERMARKETS AND DRUGSTORES JUMPED 23 TO 462 MILLION DURING THE FIRST QUARTER OF THIS YEAR ACCORDING TO TOWNEOLLER & ASSOCIATES A SUBSIDIARY OF INFORMATION RESOURCES INC WARNERLAMBERT'S EPT LED THE FIELD WITH SALES UP 40 TO 135 MILLION I THINK EPT OUTPACED THE CATEGORY'S SALES BECAUSE OF OUR ADVERTISING SAYS CHRISTINE RICKER EPT'S PRODUCT MANAGER EVEN MEN WHO AREN'T IN OUR TARGET GROUP ARE FAMILIAR WITH THE BRAND SALES OF FIRST RESPONSE PREGNANCY TEST KITS MARKETED BY CARTERWALLACE INC SURGED 33 TO 65 MILLION AND SALES OF JOHNSON & JOHNSON'S ADVANCE TEST NEARLY TRIPLED TO 44 MILLION LOSING GROUND IN THE SWELLING CATEGORY JOHNSON & JOHNSON'S FACT PLUS BRAND WHICH REQUIRES CONSUMERS TO FOLLOW A SLIGHTLY MORE COMPLICATED PROCEDURE THAN COMPETITORS AND AMERICAN HOME PRODUCTS CORP'S CLEARBLUE EASY COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL THE LISTS OF FASTESTGROWING AND FASTESTDECLINING HEALTH AND BEAUTYCARE PRODUCTS ARE BASED ON PRODUCT SHIPMENTS RECEIVED BY 30400 SUPERMARKETS AND 12900 DRUGSTORES TOWNEOLLER RANKS 350 PRODUCT CATEGORIES WITH QUARTERLY SALES OF AT LEAST 6 MILLION BY PERCENTAGE CHANGE IN SALES COMPARED WITH A YEAR EARLIER SHOPPERS CONTINUED TO FILL THEIR BASKETS WITH WOMEN'S PERMANENTRAZOR SYSTEMS MAKING THEM THE FASTESTGROWING HEALTH AND BEAUTY PRODUCT FOR THE THIRD CONSECUTIVE QUARTER OTHER STRONG SELLERS INCLUDED ALLERGY REMEDIES WITH SALES UP 57 THE GROWTH WAS DRIVEN LARGELY BY THE OVERTHECOUNTER LAUNCH OF THE ANTIHISTAMINE TAVIST BY SANDOZ PHARMACEUTICALS CORP A UNIT OF SWISS SANDOZ AG AMERICANS ALSO CONTINUED A TREND SOME MARKETING CONSULTANTS HAVE DUBBED PHASE THREE OF THE YUPPIE SYNDROME TIRED OF WORKING OUT AND EATING HEALTHFULLY MANY CONSUMERS ARE NOW CONTENT TO MERELY POP VITAMINS SALES OF VITAMIN E WERE PARTICULARLY STRONG UP 24 IN THE WAKE OF NUMEROUS STUDIES SUGGESTING THE ANTIOXIDANT CAN LOWER THE RISK OF DISEASE TWO STUDIES PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE FOUND THAT TAKING VITAMIN E FOR TWO YEARS WAS ASSOCIATED WITH A 40 REDUCED RISK OF HEART DISEASE BUT SHOPPERS TURNED UP THEIR NOSES AT SUCH PRODUCTS AS LIQUIDDIET DRINKS AND DIET PILLS ALSO COLLECTING DUST ON RETAILERS SHELVES BLOODGLUCOSE MONITORS USED BY PEOPLE WITH DIABETES TO MANAGE THEIR DISEASE WITH MANY OF THE DEVICES ALREADY IN CONSUMERS' HANDS MARKETERS ARE NOW FOCUSING ON SELLING THE DISPOSABLE TEST STRIPS USED WITH MONITORS MARKETING GURUS SAY MANY OF THE BROAD TRENDS THAT HAVE FUELED GROWTH OF OTHER HOME HEALTHCARE PRODUCTS ARE ALSO GIVING SALES OF PREGNANCY TESTS A LIFT AMERICANS NOWADAYS ARE GENERALLY SEEKING GREATER CONTROL OVER THEIR OWN HEALTH CARE EVEN IF IT MEANS FOOTING MORE OF THE BILL THEMSELVES IN ADDITION TECHNOLOGICAL ADVANCES HAVE MADE MANY OF THE HOME DIAGNOSTIC TESTS EASIER TO USE MOST OF THE CURRENT HOME PREGNANCY TEST KITS DETECT A HORMONE THAT IS PRESENT DURING PREGNANCY TYPICALLY THE TESTS NOW GIVE RESULTS WITHIN FIVE MINUTES AND CAN BE USED THE FIRST DAY OF A MISSED MENSTRUAL PERIOD IF USED PROPERLY MARKETERS CLAIM THE KITS ARE MORE THAN 99 ACCURATE MANY OF THE TESTS NOW BOAST ONESTEP TECHNOLOGY AND REQUIRE ONLY THAT WOMEN URINATE ON THE TIP OF A PENSHAPED IMPLEMENT IF THE PARTICULAR HORMONE IS PRESENT A CHEMICAL REACTION TAKES PLACE INSIDE A PLASTIC CASE A POSITIVE RESULT IS USUALLY INDICATED BY A COLORED CIRCLE BAR OR PLUS SIGN THAT APPEARS IN A TEST WINDOW DEMOGRAPHERS SAY BOOMING PREGNANCYTEST SALES DON'T NECESSARILY FORESHADOW A FUTURE BABY BOOM ONLY ABOUT 50 OF WOMEN WHO BUY THE HOME TESTS ARE HOPING FOR A POSITIVE RESULT ACCORDING TO MARKETERS AND AS THE POPULATION AGES THE NUMBER OF WOMEN OF CHILDBEARING YEARS IS DECREASING THE HOME PREGNANCY TESTS MAY BE BENEFITING FROM PARTICULAR TYPES OF WOMEN WHO ARE NOW BECOMING PREGNANT IN RECENT YEARS THERE HAVE BEEN GROWING NUMBERS OF BIRTHS AMONG OLDER WOMEN WHO ARE OFTEN BETTEREDUCATED AND MAY BE MAKING MORE OF A CONCERTED EFFORT TO GET PREGNANT MANY OF THOSE WOMEN BEGIN A HEALTHFUL REGIMEN EVEN BEFORE THEY CONCEIVE AND MAY BUY PREGNANCY TESTS EVERY MONTH UNDERSCORING THE THEORY TOWNEOLLER DATA SHOW SALES OF HOME OVULATION KITS ALSO INCREASED DURING THE QUARTER UP 16 COMPARED WITH THE YEAREARLIER PERIOD AT THE SAME TIME THE NUMBER OF SINGLE MOTHERS IN THE US HAS INCREASED DRAMATICALLY IN RECENT DECADES AMONG THE TOTAL US POPULATION MORE THAN ONEFOURTH OF ALL CHILDREN ARE BORN TO WOMEN WHO ARE NOT MARRIED ALTHOUGH SOCIETY HAS GROWN MORE ACCEPTING OF THAT RAND'S MR MORRISON HYPOTHESIZES THAT THE PRIVACY OF HOME PREGNANCY TESTS MAY BE EVEN MORE IMPORTANT TO UNWED MOTHERS DESPITE THOSE DRAMATIC CHANGES ANALYSTS SAY GOOD OLDFASHIONED MARKETING IS PROBABLY RESPONSIBLE FOR MUCH OF THE CATEGORY'S GROWTH THE TOP FOUR MARKETERS IN THE CATEGORY POURED 194 MILLION INTO CONSUMER ADVERTISING LAST YEAR ACCORDING TO LEADING NATIONAL ADVERTISERS INC WHICH TRACKS AD SPENDING WARNERLAMBERT ALONE SPENT 72 MILLION AN 18 INCREASE FROM THE PREVIOUS YEAR WARNERLAMBERT CALLS IT MONEY WELLSPENT ITS CINEMA VERITE AD CAMPAIGN WAS CREATED BY J WALTER THOMPSON IN NEW YORK AND WAS DIRECTED BY MICHAEL APTED WHO HAS WON CRITICAL ACCLAIM FOR A DOCUMENTARY SERIES THAT FOLLOWED THE LIVES OF A GROUP OF BRITISH YOUTHS FROM THE AGE OF SEVEN TO THE AGE OF 35 THE ADS DRAW ON THAT EXPERIENCE IN ELICITING RESPONSES FROM REAL PEOPLE THE THREE COUPLES THAT APPEARED IN THE 30SECOND SPOTS RESPONDED TO ADS PLACED IN LOCAL NEWSPAPERS THE FINALISTS WERE TESTED USING EPT KITS AND THEIR SPONTANEOUS REACTIONS TO THE RESULTS WERE FILMED THE CAMPAIGN GOT AN ADDITIONAL BOOST TWO MONTHS AFTER CRYING OVER THE NEGATIVE TEST RESULT IN THE TV COMMERCIAL HELEN PADOVAN SUCCESSFULLY CONCEIVED IN FEBRUARY SHE DELIVERED A HEALTHY BABY GIRL SPURRING A ROUND OF NEWS STORIES THE COMPANY FIGURES THE EXTRA EXPOSURE GENERATED BY THE CONTROVERSIAL CAMPAIGN IN EFFECT DOUBLED ITS MEDIA BUDGET LAST YEAR MRS PADOVAN HAS SINCE APPEARED ON NUMEROUS TELEVISION SHOWS PLUGGING EPT AND PROMOTING PRECONCEPTION CARE NOT SURPRISINGLY THIS PROGRAM OF HEALTHFUL EATING AND EXCERCISE ALSO INCLUDES MONTHLY HOME PREGNANCY TESTS 9305200085 930520 LEISURE & ARTS THE GALLERY PUTTING SRI LANKA ON THE MAP WITH SCULPTURE BY LEE ADAIR LAWRENCE WASHINGTON A NEW ART ORDER IS EMERGING IN OUR POSTCOLD WAR WORLD CULTURAL SATELLITES ARE DEMANDING THAT THEIR ARTISTIC TRADITIONS BE RECOGNIZED AS INDEPENDENT FORMS EVEN THOUGH THEY MAY HAVE BORROWED HEAVILY FROM THE SUPERPOWERS ONE DEBATE OVER THE NEW ORDER IS HIGHLIGHTED BY AN EXHIBITION OF 52 EXQUISITE SRI LANKAN BRONZES AT THE SMITHSONIAN INSTITUTION'S ARTHUR M SACKLER GALLERY UP UNTIL SEPT 26 INCLUDED ARE 26 PIECES UNEARTHED OVER THE PAST 30 YEARS AT THE SITES OF ANCIENT MONASTERIES AND PALACES THEIR FIRST TRIP OUTSIDE SRI LANKA HAS TAKEN THEM TO THE MUSEE NATIONAL DES ARTS ASIATIQUES GUIMET IN PARIS THE RIETBURG MUSEUM IN ZURICH AND FINALLY HERE BUDDHAS AND BODHISATTVAS DOMINATE THE SHOW YET IT ALSO INCLUDES 13 HINDU BRONZES BELIEVED TO DATE FROM THE 11TH CENTURY WHEN THE ISLAND WAS RULED BY CHOLA EMPERORS FROM SOUTH INDIA THESE PIECES WHICH INCLUDE SEVERAL WORLDCLASS MASTERPIECES ARE CLEARLY THE BEST OF SRI LANKAN ART THE ISSUE HERE IS ONE OF DEFINITION THE OLD ORDER UNHESITATINGLY DEFINES ALL SRI LANKAN BUDDHIST BRONZES AS SECONDRATE IMITATIONS OF THOSE IMAGES CAST IN INDIA IN HIS 1923 BOOK INDIAN SCULPTURE AT THE BRITISH MUSEUM WILLIAM ROTHENSTEIN PREACHED THE GOSPEL NO SCULPTURE HAS BEEN PRODUCED IN THE COUNTRIES INSPIRED BY THE BUDDHA'S TEACHING SUPERIOR IN POWER AND GRANDEUR TO THE ORIGINAL CONCEPTIONS OF THE INDIAN GENIUS IDEOLOGY HOWEVER IS ONLY PARTLY TO BLAME FOR MANY SCHOLARS' DISMISSAL OF SRI LANKAN ART MOST OF THE BRONZES ASSOCIATED WITH SRI LANKA IN THE FIRST HALF OF THE CENTURY ARE SMALL BUDDHA IMAGES THAT GENERATIONS OF MONKS RITUALISTICALLY RUBBED WITH BRICK DUST UNTIL THEY WERE FEATURELESS LUMPS OF METAL THE OLD ORDER ALSO STUDIES THE ISLAND'S HINDU ART PURELY IN RELATION TO INDIA CONCLUDING THAT MOST SRI LANKAN PIECES ARE DERIVATIVE OR PROVINCIAL IN THIS CONTEXT THE HIGHEST COMPLIMENT BESTOWED ON A SRI LANKAN HINDU WORK IS ATTRIBUTION TO A SOUTH INDIAN ARTIST NOT SURPRISINGLY THE FIRST TO ATTACK THIS VIEW WERE SCHOLARS IN SRI LANKA SIR PONNAMBALAM ANURACHALAM WROTE IN 1909 OF THE CONSCIOUS OR MORE UNCONSCIOUS ASSUMPTION THAT SRI LANKA IS A PARADISE OF MEDIOCRITIES SOME SRI LANKANS GO SO FAR AS TO CLAIM THAT THEIR ANCESTORS DEVELOPED THE VERY IMAGE OF BUDDHA TRADITIONALLY BELIEVED TO HAVE ORIGINATED AROUND THE THIRD CENTURY BC IN NORTHERN INDIA AT TIMES SRI LANKAN SCHOLARS BORDER ON THE STRIDENT PERHAPS DRIVEN AS MUCH BY RESENTMENT TOWARD THEIR GIANT NEIGHBOR AND REAL POLITICAL FEARS AS BY AESTHETIC PRIDE SRI LANKA'S AMBASSADOR TO THE US ANANDA WP GURUGE NOTES THAT NO ONE OBJECTED TO INDIA'S TAKEOVER OF SIKKIM OR BHUTAN REFERRING TO INDIA'S ASSUMPTION OF THESE COUNTRIES' DEFENSE AND FOREIGN RELATIONS IN 1950 AND 1949 AND INDIA COULD HAVE TAKEN SRI LANKA TOO HE ADDS THAT IF INDIA OR ANYONE ELSE ATTEMPTS TO DESTABILIZE OR OVERRUN HIS COUNTRY THE RESPECT GENERATED BY THE EXHIBIT WOULD TRANSLATE INTO INTERNATIONAL OUTRAGE SRI LANKA GETS POLITICAL MILEAGE OUT OF THE EXHIBIT IN OTHER WAYS WE COULD HAVE MADE IT AN ENTIRELY BUDDHIST SHOW AMBASSADOR GURUGE SAYS INSTEAD THE PLURALIST SHOW DELIBERATELY ACTS AS A COUNTERPOISE TO THE GOVERNMENT'S REPUTATION OF SUBJUGATING THE HINDU TAMIL MINORITY MR GURUGE MENTIONS ANOTHER POLITICAL PAYOFF DURING THE PRESIDENTIAL CAMPAIGN CLINTON MADE A COMMENT ABOUT THE US ECONOMY BEING SOMEWHERE BETWEEN THAT OF GERMANY AND THAT OF SRI LANKA COUNTERING SUCH PEJORATIVE RHETORIC HE SAYS IS WELL WORTH THE 18000 THE SRI LANKAN GOVERNMENT PAID TO BRING THE EXHIBIT TO AMERICA 9305200084 930520 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE FIRST OF THE PERSONAL DIGITAL ASSISTANTS HAS ARRIVED AND ITS NAME IS EO EO INC A STARTUP IN MOUNTAIN VIEW CALIF HAS BEATEN SUCH BIG COMPANIES AS APPLE COMPUTER AND MOTOROLA TO MARKET WITH THE FIRST OF THESE MUCHHERALDED NEW PDA DEVICES SMALL SMART COMPUTERS THAT LET USERS ON THE GO ENTER NAMES DATES AND NOTES BY WRITING ON THE SCREEN WITH A SPECIAL PEN AND SEND AND RECEIVE BRIEF MESSAGES IN THE FORM OF FAXES AND ELECTRONIC MAIL EITHER THROUGH REGULAR PHONE LINES OR BY WIRELESS MEANS THE COMPANY'S FIRST MODEL THE EO PERSONAL COMMUNICATOR 440 HAS BEEN AVAILABLE TO SELECTED BIG CUSTOMERS FOR A FEW MONTHS AND IS EXPECTED TO REACH STORES INCLUDING AMERICAN TELEPHONE & TELEGRAPH'S PHONE CENTERS NEXT MONTH AT&T IS AN IMPORTANT FINANCIAL BACKER AND TECHNOLOGY PARTNER FOR EO A SECOND MORE CAPABLE AND COSTLY MODEL THE LARGER AND HEAVIER EO 880 WITH A BIGGER BACKLIGHTED SCREEN WILL BE AVAILABLE LATER THIS YEAR I HAVE BEEN USING A PROTOTYPE EO 440 ON AND OFF FOR A COUPLE OF MONTHS AND A PRODUCTION MODEL OVER THE PAST FEW DAYS AND IT PERFORMS LARGELY AS ADVERTISED I CONSIDER IT A LANDMARK PERSONAL COMPUTER THE FIRST PC I'VE SEEN THAT SMOOTHLY INTEGRATES PEN INPUT ORGANIZER SOFTWARE AND THE FEATURES OF A TELEPHONE AND MODEM IN A TRIM PORTABLE PACKAGE ITS DESIGNERS HAVE PACKED TREMENDOUS COMPUTING POWER INTO A ONEPIECE 22POUND BLACK ELECTRONIC TABLET A LITTLE SHORTER AND WIDER THAN A SHEET OF BUSINESS PAPER THE EO HAS A 4 1/2INCHBY7INCH SCREEN FLANKED BY TWO SEMICIRCULAR EARLIKE PROTRUSIONS WHICH CONTAIN THE MODEM AND OTHER CONNECTOR PORTS A SPEAKER AND A MICROPHONE LETTING YOU RECORD AND PLAY BACK VERBAL MESSAGES FOR WIRELESS COMMUNICATIONS AN OPTIONAL CELLULAR PHONE MODULE ADDS A HANDSET CRADLE AND ANTENNA TO THE TOP OF THE UNIT THAT'S THE GOOD NEWS THE BAD NEWS ABOUT EO IS THAT IT IS AN EVOLUTIONARY NOT REVOLUTIONARY PRODUCT IT IS STILL A PERSONAL COMPUTER WITH A TELEPHONE GRAFTED ON AND IT HAS MANY OF THE SHORTCOMINGS OF PORTABLE PCS IT ISN'T THE KIND OF POSTPC DEVICE THAT PROMOTERS OF THE PDA CONCEPT HAVE PROMISED SOMETHING WITH THE PRICE SIZE AND BATTERY LIFE OF A SHARP WIZARD BUT THE SMARTS AND COMMUNICATIONS ABILITY OF A GOOD PC AND AN ADVANCED PHONE THE EO IS TOO LARGE TOO POWERHUNGRY AND AT NEARLY 4000 FOR A FULLY EQUIPPED WIRELESS BASE UNIT TOO PRICEY TO BECOME TRULY UBIQUITOUS IN BUSINESS AND SET THE WORLD ON ITS EAR IN MY VIEW EO IS WORKING ON A SMALLER LOWERPRICED MODEL THAT WILL PROBABLY HAVE THE PHONE FUNCTIONS BUILT IN STILL THE 440 IS A PRETTY SLICK PC WHEN YOU TURN IT ON IT DISPLAYS A TABLE OF CONTENTS THAT'S A FEATURE OF THE MACHINE'S PENPOINT OPERATING SYSTEM BY GO CORP WHICH IS DESIGNED FOR PCS THAT USE PENS INSTEAD OF KEYBOARDS BY TAPPING THE SPECIAL PEN ON ANY OF THE ENTRIES YOU CAN CALL UP A SOPHISTICATED ADDRESS BOOK CALENDAR TODO LIST NOTETAKING PROGRAM AND CALCULATOR YOU CAN CREATE MEMOS AND MESSAGES EITHER IN INK WHICH IS YOUR OWN SCRAWL OR TEXT WHICH IS THAT SAME SCRAWL TRANSLATED INTO PRINTED CHARACTERS BY THE GO SOFTWARE DOCUMENTS CAN BE TRANSMITTED USING A SEND COMMAND AS EITHER FAXES OR EMAIL MESSAGES ON AT&T'S EMAIL SYSTEM WHICH CAN FORWARD MESSAGES TO OTHER SYSTEMS IF YOU AREN'T CONNECTED TO A LAND OR WIRELESS PHONE SYSTEM THE EO STORES YOUR MESSAGE IN AN ELECTRONIC OUT BOX FOR TRANSMISSION LATER IT CAN ALSO DIAL IN FOR EMAIL AND RECEIVE FAXES AND IT STORES BOTH KINDS OF MESSAGES IN AN ELECTRONIC IN BOX WITH THE CELLULAR MODULE OR A CONNECTED STANDARD PHONE YOU CAN ALSO PLACE AND RECEIVE REGULAR VOICE CALLS IN MY TESTING I SENT AND RECEIVED FAXES AND EMAIL MESSAGES FROM STREET CORNERS MY LIVING ROOM AND THE BACK SEATS OF TAXIS IT ALL WORKED SMOOTHLY THE BIGGEST PROBLEM HOWEVER IS HANDWRITING RECOGNITION YOU CAN ALWAYS FAX A HANDWRITTEN NOTE BUT FOR SOME FUNCTIONS SUCH AS SENDING BASIC EMAIL AND MAKING ENTRIES IN THE ADDRESS BOOK GOOD TRANSLATION IS ESSENTIAL AND YOU CAN'T SEARCH SORT OR EDIT INK AND EO'S HANDWRITING RECOGNITION FALLS SHORT IN NEARLY EVERY CASE I HAD TO MAKE AT LEAST A COUPLE OF CORRECTIONS USING SPECIAL PROOFREADING GESTURES THAT REQUIRED PRACTICE THAT GOT OLD FAST SOME FUTURE ADDON PRODUCTS MAY EASE THE PROBLEM BETTER HANDWRITINGRECOGNITION SOFTWARE IS ON THE WAY THAT WILL PLUG INTO EO'S OPERATING SYSTEM AND A LITTLE COMPANY CALLED AHA SOFTWARE ALSO IN MOUNTAIN VIEW HAS DEVELOPED A REVOLUTIONARY SYSTEM FOR EDITING AND SEARCHING THROUGH ELECTRONIC HANDWRITING THE SOFTWARE DUE OUT THIS SUMMER WILL RUN ON THE EO THE EO 440 IS TOO LARGE TO FIT IN A POCKET OR SMALL PURSE AND THE OPTIONAL CELLULAR PHONE PACKAGE MAKES IT EVEN BIGGER LIKE A NOTEBOOK COMPUTER THE EO REQUIRES SPECIAL BATTERIES THAT PROVIDE LIMITED LIFE THE COMPANY SAYS THE STANDARD BATTERY WILL LAST AS LONG AS FOUR HOURS BETWEEN RECHARGES AS LONG AS YOU AREN'T USING THE CELLULAR PHONE OR HARD DISK DRIVE MUCH I'D EXPECT TWO TO THREE HOURS MORE WITH THE OPTIONAL EXTENDEDLIFE BATTERY THE EO IS ALSO PRICED LIKE A COSTLY PORTABLE PC THE BASE 440 MODEL WITH NO COMMUNICATIONS ABILITY OR DISK DRIVE LISTS FOR 2000 THE LIST PRICE LEAPS TO 3000 WHEN YOU ADD A REGULAR MODEM AND A SMALL 20MEGABYTE HARD DISK DRIVE THE CELLULAR PHONEMODEM MODULE COSTS 800 THE EO MACHINE PUSHES THE PENBASED PORTABLE PC TO ITS CURRENT LIMITS BUT NOT BEYOND FOR THAT STAY TUNED FOR FURTHER PDA INTRODUCTIONS AS THE YEAR ROLLS ON 9305200083 930520 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION JORDAN INDUSTRIES INC AN OFFERING OF 275 MILLION OF SENIOR NOTES DUE 2003 AND AN ESTIMATED 16136 MILLION OF SENIOR SUBORDINATED DISCOUNT DEBENTURES DUE 2005 VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND JEFFRIES & CO MEDIA LOGIC INC A 1225000 SHARE OFFERING VIA TUCKER ANTHONY INC AND PENNSYLVANIA MERCHANT GROUP LTD MUSICLAND STORES CORP AND ITS MUSICLAND GROUP INC UNIT AN OFFERING OF 110 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND JP MORGAN SECURITIES INC PACIFIC GAS & ELECTRIC CO A SHELF OFFERING FOR UP TO 1 BILLION IN FIRST AND REFUNDING MORTGAGE BONDS VIA FIRST BOSTON CORP GOLDMAN SACHS & CO AND MORGAN STANLEY & CO 9305200082 930520 MARKETING & MEDIA WHITTLE EXCEEDED TIME FOR ADS TWICE IN SCHOOL PROGRAMS BY GARY PUTKA AND SUZANNE ALEXANDER STAFF REPORTERS OF THE WALL STREET JOURNAL WHITTLE COMMUNICATIONS LP HAS TWICE GONE OVER THE CONTRACTUAL LIMIT FOR COMMERCIALS IN ITS CHANNEL ONE TELEVISION PROGRAM FOR SCHOOLS AND MAY SEEK TO RAISE THE MAXIMUM SOON ADDING MORE ADVERTISING TO CHANNEL ONE ALREADY A FOCUS OF CONTROVERSY BECAUSE OF ITS COMMERCIAL CONTENT IS SURE TO RAISE CRITICISM OF WHITTLE AMONG EDUCATORS IT ALSO MAY FEED SPECULATION THAT WHITTLE WHICH RECENTLY SCALED BACK SOME CAPITALRAISING PLANS HAS A PRESSING NEED FOR ADDED CASH WHITTLE IS 375OWNED BY TIME WARNER INC PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND ASSOCIATED NEWSPAPERS HOLDINGS LTD OF BRITAIN ARE ALSO HOLDERS OF MAJOR STAKES JIM RITTS WHITTLE'S PRESIDENT OF NETWORK AFFAIRS SAYS THAT ON TWO RECENT DAYS THE COMPANY AIRED 25 MINUTES OF COMMERCIALS ON THE 12MINUTE NEWS PROGRAM EXCEEDING THE TWO MINUTES ALLOWED IN ITS SCHOOL CONTRACTS MR RITTS SAYS THAT WHITTLE HASN'T ALWAYS SOLD OUT THE TWO MINUTES OF AD SLOTS IN THE PROGRAM AND THOUGHT IT REASONABLE TO MAKE UP FOR THE LOST TIME MR RITTS ACKNOWLEDGES THAT SHOWING 25 MINUTES OF COMMERCIALS VIOLATES THE LETTER OF THE CONTRACTS BUT HE INSISTS NOT THE SPIRIT HE SAYS THAT CHANNEL ONE HAS AVERAGED 185 MINUTES OF COMMERCIALS ABOUT ONE MINUTE 51 SECONDS THIS SCHOOL YEAR AND WAS UNDER THE LIMIT IN AGGREGATE CHANNEL ONE IS BROADCAST BY SATELLITE TO ABOUT 12000 SCHOOLS THE EDUCATION ESTABLISHMENT IN THIS COUNTRY SHOULD TAKE THEM TO COURT SAYS PEGGY CHARREN A VISITING SCHOLAR AT HARVARD UNIVERSITY AND FOUNDER OF ACTION FOR CHILDREN'S TELEVISION THIS PROVES THAT ALL THESE PROTESTATIONS BY WHITTLE THAT THEY WILL BE VERY CAREFUL AND ONLY SHOW TWO MINUTES OF COMMERCIALS ARE NONSENSE WHEN THE BOTTOM LINE IS HURTING THE CHILDREN WILL SUFFER WHITTLE DIDN'T ANNOUNCE THE ADDED COMMERCIALS OR BROADLY INFORM THE SCHOOLS ABOUT THEM MR RITTS CONFIRMED THE ADDED ADVERTISING IN RESPONSE TO REPORTERS' QUESTIONS IN AN INTERVIEW THE TWO MINUTES WERE MORE THAN ANYBODY WANTED IN THE FIRST PLACE SAYS TERI WOTIPKA A MEMBER OF THE HUMBLE TEXAS CHAPTER OF CITIZENS FOR EXCELLENCE IN EDUCATION A CHRISTIANORIENTED EDUCATION ADVOCACY GROUP THIS IS A POOR LESSON FOR KIDS THAT A CONTRACT DOESN'T MEAN ANYTHING OTHER CRITICS SAY WHITTLE IS FACING A CASH SQUEEZE POINTING TO LAYOFFS AT THE COMPANY LAST YEAR AND SCALEDBACK PLANS TO RAISE MONEY FOR A CHAIN OF FORPROFIT SCHOOLS BUT WHITTLE OF KNOXVILLE TENN HAS DENIED IT FACES CASH PROBLEMS MR RITTS SAYS WHITTLE PLANS TO ASK ITS SCHOOL SUBSCRIBERS SOON FOR PERMISSION TO AMEND CURRENT CONTRACTS SO THAT 25 MINUTES OF COMMERCIALS CAN BE SHOWN ON ANY DAY SO LONG AS THE ANNUAL AVERAGE IS STILL BELOW TWO MINUTES 9305200081 930520 BUNGLED BUYOUT ARGENTINE AIRLINE SALE SHOWS PRIVATIZATION IS HARDLY A CUREALL GOVERNMENT SOLD AEROLINEAS QUICKLY BUT SOON FOUND HOST OF STICKY PROBLEMS IBERIA'S SOUTH AMERICA FORAY BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL BUENOS AIRES WHEN A GROUP LED BY SPAIN'S IBERIA AIRLINES TOOK CONTROL OF AEROLINEAS ARGENTINAS A SPOKESMAN FOR THE BUYERS CONFIDENTLY PREDICTED THAT THIS PRIVATIZATION WILL BE NOTED OVER TIME HE WAS RIGHT TWO AND A HALF YEARS LATER THE DEAL CONTINUES TO MAKE HEADLINES BUT NOT FOR THE REASONS IMAGINED THE ARGENTINE GOVERNMENT'S PLAN WAS TO PROVIDE THE COMPANY WITH CAPITAL AND MANAGEMENT AND THE CONSUMER WITH A WELLRUN AIRLINE INSTEAD A BOTCHED LEVERAGED BUYOUT HAS LANDED AEROLINEAS IN A MORASS OF MORE THAN 1 BILLION IN DEBT WITH LOSSES THAT TOTALED 188 MILLION LAST YEAR PROBLEMS RANGING FROM AN OUTBREAK OF CHOLERA AMONG PASSENGERS TO A FIRE ABOARD A PLANE NOW LEAD SOME ARGENTINES TO TRY TO AVOID AEROLINEAS BUT THIS ISN'T EASY BECAUSE AEROLINEAS HAS ABSORBED ARGENTINA'S DOMESTIC AIRLINE AUSTRAL IN ANY CASE PRIVATIZATION HAS BECOME SOMETHING OF A MISNOMER IN THE CASE OF AEROLINEAS THE AIRLINE IS NOW MANAGED BY A SPANISH STATEOWNED COMPANY AND ITS BIGGEST SHAREHOLDER IS THE ARGENTINE STATE WHICH STEPPED BACK IN RELUCTANTLY LAST YEAR TO REPLACE IBERIA'S INSOLVENT ARGENTINE PARTNERS SAYS ROBERTO RUIZ A BANKER AND PRIVATIZATION EXPERT IT'S A TRAGICOMIC SERIES OF ERRORS OF WHICH WE HAVEN'T SEEN THE END AT A TIME WHEN PRIVATIZATION IS A BUZZWORD FROM ALBANIA TO ZAMBIA THE AEROLINEAS ARGENTINAS SAGA IS A CAUTIONARY TALE SHOWING THAT PRIVATIZATION ALONE ISN'T MAGIC HOW A STATE COMPANY IS SOLD WHOM IT IS SOLD TO AND WHAT REGULATORY FRAMEWORK IS ENFORCED ARE CRUCIAL TO A SALE'S SUCCESS RATHER THAN PRIVATIZE AEROLINEAS CAREFULLY THE GOVERNMENT CHOSE TO DO IT FAST THIS DEAL IS IN SHARP CONTRAST TO THE REST OF ARGENTINA'S SOFAR SUCCESSFUL PRIVATIZATION EFFORT WHICH HAS RAISED 53 BILLION AND HAS CUT THE COUNTRY'S DEBT BY 67 BILLION THROUGH DEBTFOREQUITY SWAPS AEROLINEAS OFFICIALS SAY THEY HAVE OVERCOME THE ROCKY START AND THEY PREDICT A TURNAROUND CLAIMING THEY HAD TO MANAGE A COMPANY IN A PERMANENT IMPASSE THAT WAS NOT BROKEN UNTIL LATE LAST YEAR THEY ASK TO BE JUDGED NOT ON THEIR FIRST TWO YEARS BUT ON WHAT THEY ARE DOING NOW THINGS ARE FALLING INTO PLACE NOW SAYS ALEJANDRO LOTITTO AN AEROLINEAS SPOKESMAN EVEN IF HE IS RIGHT HOWEVER THIS HAS BEEN A COSTLY LESSON THAT WILL TEST THE SURVIVAL SKILLS NOT ONLY OF AEROLINEAS WHICH WAS PROFITABLE WHEN SOLD THOUGH IT HAD AN AGING FLEET AND AN UNCLEAR STRATEGY BUT ALSO OF THE SPANISH AIRLINE THAT NOW MANAGES IT FOR THAT AIRLINE IBERIA THE INVESTMENT WAS PART OF A STRATEGY TO SURVIVE EUROPE'S CUTTHROAT COMPETITION BY EXPANDING IN LATIN AMERICA IBERIA ALSO ACQUIRED MANAGEMENT CONTROL OF VENEZUELA'S VIASA AND A 35 STAKE IN CHILE'S LADECO IF IBERIA DOESN'T SUCCEED IN THIS IT GOES UNDER SAYS MIGUEL ANGEL DERQUI AEROLINEAS EXECUTIVE VICE PRESIDENT WHO IS A SPANIARD SENT BY IBERIA BUT SO FAR IBERIA HAS LITTLE TO SHOW FOR ITS EFFORTS SAYS ROBERT C BOOTH PRESIDENT OF AVIATION MANAGEMENT SERVICES A MIAMIBASED CONSULTANT THE STRATEGY IBERIA LAID OUT WAS PRETTY SMART BUT THE EXECUTION HAS BEEN HORRENDOUS MR DERQUI ADMITS THIS BUT SAYS WHEN DID YOU SEE A COMPANY ATTACKED LIKE THIS BY ITS OWN UNIONS WHEN DID YOU SEE A COMPANY WHERE THE STRATEGIC PLAN IS MADE PUBLIC THIS IS CRAZY WHILE THE AEROLINEAS PROBLEMS WERE LARGELY SELFINFLICTED BY BUYER AND SELLER ALIKE SOME RELATE TO TROUBLES IN THE AIRLINE INDUSTRY WORLDWIDE AND TO HEIGHTENED REGIONAL COMPETITION FROM MEGACARRIERS LIKE AMERICAN AIRLINES AND UNITED AIRLINES MOREOVER IBERIA HAS HAD TO CONTEND WITH A NATIONALISTIC BACKLASH TO A NEW SPANISH COLONIZATION AND IDEOLOGICAL HOSTILITY TO PRIVATIZATION THE SALE OF AEROLINEAS RAN INTO HEAVY CRITICISM EVEN BEFORE IT WAS COMPLETED TO SAVE TIME AND SHOW ITS DETERMINATION TO SELL THE AIRLINE THE ARGENTINE GOVERNMENT DIDN'T BOTHER TO HIRE AN INDEPENDENT FINANCIAL ADVISER INSTEAD PUTTING PUBLIC WORKS MINISTER ROBERTO DROMI IN CHARGE HE MADE REPEATED CHANGES IN THE SALE'S CONDITIONS STEPS HE DEFENDS BECAUSE OF ARGENTINA'S STATE OF DEPENDENCE AT THE TIME A NUMBER OF MAJOR CARRIERS AT FIRST SHOWED INTEREST BUT SCARED AWAY BY A HIGH ASKING PRICE THE GOVERNMENT'S UNPROFESSIONALISM AND DELAYS AMERICAN KLM ROYAL DUTCH AIRLINES ITALY'S ALITALIA AND BRAZIL'S VARIG ALL BOWED OUT IF MAJORS LIKE AMERICAN AIRLINES SAID THE BASIC UNDERLYING SALES TERMS WERE INADEQUATE THE GOVERNMENT SHOULD HAVE LISTENED TO THE WARNING BELLS SAYS STEVEN DARCH MANAGING DIRECTOR OF BANCO MARIVA A BUENOS AIRES BANK BUT THE GOVERNMENT FORGED AHEAD ITS JULY 1990 DEADLINE SAW ONLY ONE BID FROM IBERIA AND ITS ARGENTINE PARTNERS LED BY ENRIQUE PESCARMONA THEN OWNER OF AUSTRAL THE HOPEDFOR BIDDING TURNED INSTEAD INTO BAZAARSTYLE HAGGLING DESPITE CALLS TO CANCEL THE SALE ARGENTINA AWARDED AEROLINEAS TO THE CONSORTIUM FOR 130 MILLION IN CASH 130 MILLION IN DEFERRED CASH PAYMENTS AND DEBT PAPER WITH A FACE VALUE OF 2 BILLION AND A MARKET VALUE AT THE TIME OF ABOUT 300 MILLION THE BUYERS ALSO PLEDGED TO INVEST 648 MILLION OVER FIVE YEARS THEY PREDICTED A FIRSTYEAR PROFIT OF 100 MILLION BUT IT TURNED OUT THAT ONLY IBERIA HAD THE MONEY TO BUY AEROLINEAS AND IBERIA WAS ONLY A RELUCTANT PARTICIPANT HOWEVER MR PESCARMONA CONVINCED IBERIA THAT IT COULD ACQUIRE AEROLINEAS WITHOUT PUTTING IN A PENNY BY SELLING AND LEASING BACK SIX AEROLINEAS JETS ACCORDING TO A PERSON CLOSE TO HIM IN ADDITION ARGENTINE PRESIDENT CARLOS MENEM CALLED SPANISH PRIME MINISTER FELIPE GONZALEZ TO ASK HIM TO INTEREST IBERIA SAYS ECONOMY MINISTER DOMINGO CAVALLO IT WAS PRACTICALLY A DEAL BETWEEN TWO STATES HOWEVER WHEN MR MENEM HEARD OF THE BUYERS' SALE AND LEASEBACK PLANS HE PROCLAIMED THE GOVERNMENT WILL NOT ACCEPT SUCH A MANEUVER AND THE BID PROSPECTUS DIDN'T ALLOW SELLING AEROLINEAS ASSETS SO THE BUYERS DECIDED TO FINANCE THE PURCHASE BY BORROWING AGAINST AEROLINEAS ASSETS INSTEAD OF BLOCKING THE SALE THE GOVERNMENT WROTE AN AMBIGUOUS CLAUSE INTO THE TRANSFER CONTRACT WHICH WASN'T MADE PUBLIC ALLOWING THE LBO THEN CAME THE PROBLEM OF WHO WAS TO CONTROL THE AIRLINE AT 6 PM ON NOV 20 1990 AS GUESTS STARTED ARRIVING AT THE CASA ROSADA ARGENTINA'S PRESIDENTIAL PALACE FOR THE FORMAL SIGNING OF THE SALE CONTRACT THE BUYERS WERE STILL FRANTICALLY SEARCHING FOR THE NECESSARY BANK GUARANTEES FOR THE DEFERRED PAYMENT AND THE INVESTMENT PLAN HOURS LATER THE GUESTS HAD LEFT THE TV CREWS HAD PACKED UP AND NO CONTRACT HAD BEEN SIGNED BUT AS THE NIGHT GREW LONG A STRANGE BREAKTHROUGH OCCURRED THE ORIGINAL BIDDING GROUP COLLAPSED AND A NEW ONE APPEARED JUST AS SUDDENLY THOUGH IT WOULD BE THE OPERATOR OF AEROLINEAS IBERIA ORIGINALLY WAS TO OWN JUST 20 WITH 65 IN THE HANDS OF ITS ARGENTINE PARTNERS AND THE BALANCE HELD BY THE ARGENTINE STATE 5 AND AEROLINEAS STAFF 10 BUT WITH THE SALE IMPERILED IBERIA BECAME THE DOMINANT PARTNER ITS STAKE ROSE TO 30 IT ALSO ACTED AS TRUSTEE FOR 19 MORE THAT IT SAID IT WAS HOLDING FOR AN ANONYMOUS COMPANY IN ADDITION 2 WAS HELD BY AN ARGENTINE DOCTOR LIVING IN SPAIN WHO SOME CHARGE ACTED AS A FRONT FOR IBERIA ALLOWING IT TO EFFECTIVELY CONTROL AEROLINEAS WHILE 51 REMAINED IN ARGENTINE HANDS THAT WAS NECESSARY FOR AEROLINEAS TO RETAIN FLAGCARRIER STATUS MR LOTITTO AEROLINEAS'S SPOKESMAN SAYS THE DOCTOR HAD NO RELATION WHATSOEVER WITH IBERIA BUT ONCE IN CONTROL IBERIA SPENT FAR MORE TIME NEGOTIATING WITH THE ARGENTINE GOVERNMENT THAN RUNNING THE COMPANY INSTEAD OF COMING UP WITH THE DEBT PAPER IBERIA MADE CLAIM AFTER CLAIM INSISTING THAT THE ARGENTINE GOVERNMENT OWED IT MONEY FOR INVENTORY AND PREPAID TICKETS AND RATHER THAN MAKE THE FIRST OF ITS DEFERRED PAYMENTS IN MARCH 1991 IBERIA PROPOSED TO SETTLE THE WHOLE BILL AT ONCE BUT IN DEEPLY DISCOUNTED ARGENTINE DEBT PAPER NOT CASH THEN AFTER THE GOVERNMENT AGREED TO MOST OF IBERIA'S DEMANDS IBERIA FAILED TO MEET THE DEADLINE FOR PROVIDING THE DEBT PAPER AND CLAIMED BUENOS AIRES OWED IT EVEN MORE MONEY THE NEWSPAPER CLARIN SAID THE SPANIARDS' CLAIM WOULD CAUSE A PARADOX THE ARGENTINE STATE WOULD HAVE TO PAY THE SPANISH COMPANY SO IT COULD ACQUIRE AEROLINEAS ARGENTINAS FINALLY LAST JULY THE ARGENTINE GOVERNMENT RECOGNIZED THE BUYERS WERE MOSTLY INSOLVENT EXCEPT FOR IBERIA AND STEPPED BACK IN BY TRANSFORMING SOME OF THE DEBT OWED IT INTO AEROLINEAS SHARES BUENOS AIRES BOUGHT OUT MOST ARGENTINE SHAREHOLDERS AND BECAME AEROLINEAS'S SINGLE BIGGEST OWNER WITH A 43 STAKE NOW AEROLINEAS IS LEFT WITH TWO BIG HOLDERS WITH CONFLICTING INTERESTS IBERIA WANTS ALL THE HOLDERS TO INJECT NEW FUNDS INTO AEROLINEAS WHILE PROTECTING THE AEROLINEAS/AUSTRAL VIRTUAL DOMESTIC MONOPOLY CREATED IN 1991 BUT ECONOMY MINISTER CAVALLO RETORTS IF A NEW CAPITALIZATION IS NECESSARY WE'LL PROPOSE THAT AEROLINEAS SELL AUSTRAL IT COULD BE WORTH OVER 100 MILLION AND WOULD INTRODUCE COMPETITION TO MANY THIS PARTIAL RENATIONALIZATION CROWNS THE GOVERNMENT'S SERIES OF ERRORS THIS WAS A CAPITULATION SAYS ALBERTO NATALE VICE PRESIDENT OF THE ARGENTINE CONGRESS'S PRIVATIZATION COMMISSION THEY HAD A GREAT OPPORTUNITY TO PRESSURE IBERIA INTO DOING THINGS RIGHT OR GET OUT AND INSTEAD THEY ENDED UP LEGITIMIZING THE WHOLE OPERATION BUT MR CAVALLO DEFENDS THE MOVE ON LEGAL ECONOMIC AND POLITICAL GROUNDS WHILE CRITICAL OF IBERIA'S REPEATED FAILURES TO HONOR COMMITMENTS MR CAVALLO SAYS THE GOVERNMENT WAS ALSO LATE IN TRANSFERRING AEROLINEAS ASSETS TO THE NEW BUYERS AND COULD HAVE FACED A LENGTHY LEGAL BATTLE MOREOVER HE SAYS CANCELING THE SALE WOULD PROBABLY HAVE HAD GREATER POLITICAL IMPACT THAN TRYING TO CORRECT ITS COURSE AND HE SAYS EVEN IF THE BUYERS WERE LATE WITH THE PAYMENTS THE STATE RECEIVED ABOUT 860 MILLION THUS WIPING OUT THE AEROLINEAS DEBT IT ASSUMED BEFORE IT SOLD THE AIRLINE HE ALSO POINTS OUT THAT THE STATE HAS NO RESPONSIBILITY FOR THE CURRENT DEBT WHICH IS GUARANTEED BY IBERIA THUS MR CAVALLO SAYS IF IBERIA TURNS AEROLINEAS AROUND THE STATE WILL HAVE A NEW CHANCE TO SELL ITS SHARES AND IF AEROLINEAS GOES BANKRUPT HE SAYS THE ONLY THING THE STATE LOSES IS A PACKAGE OF SHARES THAT HOWEVER IS LITTLE CONSOLATION TO AEROLINEAS WHOSE PROBLEMS WORSENED EVEN AFTER IBERIA SETTLED WITH THE GOVERNMENT A FIRE ON A PLANE SITTING ON THE TARMAC IN THE CITY OF SAN JUAN EVERYONE GOT OUT SAFELY CAUSED THE AIRLINE TO GROUND SIX PLANES IN NOVEMBER 1992 JUST AS THE HIGH SEASON STARTED AT THE SAME TIME THE AIRLINE'S PLANS TO CUT 775 JOBS LED TO A SERIES OF WORK STOPPAGES THAT WREAKED SUCH HAVOC THAT MR CAVALLO SAYS HE CONSIDERED STRIPPING IBERIA'S CONCESSION TO RUN THE FLAG CARRIER THE RESULT OCCUPANCY CAME DOWN DRAMATICALLY AT THE END OF DECEMBER ADMITS AMADEO RIVA UNTIL RECENTLY THE PRESIDENT OF AEROLINEAS AEROLINEAS SAYS OCCUPANCY HAS SINCE PICKED UP AND CONTENDS THE AIRLINE'S PROBLEMS ARE OVERBLOWN BUT CONFIDENCE IN IT REMAINS LOW SAYS TRAVEL AGENT ROBERTO MERLASSINO I PUT PEOPLE ON AEROLINEAS ONLY IF THEY HAVE NO CONNECTIONS TO MAKE IMAGINE A GUY GOING TO MIAMI TO GO ON A CRUISE IF HIS PLANE IS LATE AND HE MISSES THE BOAT HE LOSES THE MONEY HE PAID FOR THE CRUISE MR DERQUI THE EXECUTIVE SENT BY IBERIA TO AEROLINEAS ADMITS THAT THERE HAVE BEEN INTENSE CONTROVERSIES THAT TOOK UP TOO MUCH OF OUR TIME I DON'T KNOW HOW WE SURVIVED WITH ALL THIS OPPOSITION BUT HE SAYS THAT MANAGEMENT HAS NOW FIRMLY TAKEN THE HELM AND SINCE OCTOBER WE'VE DONE A LOT IN THE PAST FEW MONTHS IBERIA HAS ADDED FOUR PLANES TO AEROLINEAS'S FLEET AND BEGUN ATTACKING DUPLICATION BETWEEN AEROLINEAS AND AUSTRAL IN FEBRUARY IBERIA UNVEILED A MCKINSEY & CO PLAN THAT CALLS FOR AEROLINEAS TO CONCENTRATE ON EUROPE AND AMERICA WHILE PROTECTING ITS DOMESTIC MARKET SHARE UPGRADING ITS FLEET WHILE IMPROVING PRODUCTIVITY AND MAINTENANCE AND RATIONALIZING ITS COSTS BY FULLY EXPLOITING SYNERGIES WITH AUSTRAL VIASA AND IBERIA MR DERQUI ADMITS THAT ONLY TWO OF THREE SCENARIOS IN THE MCKINSEY PLAN SHOW THE COMPANY PROFITABLE WITHIN FIVE YEARS ANALYSTS SAY THAT JUST AS IBERIA'S STRATEGIC DESIGN TO GROW IN LATIN AMERICA MADE SENSE ON PAPER BUT WAS BADLY CARRIED OUT THIS PLAN'S SUCCESS WILL DEPEND LARGELY ON EXECUTION THERE IS STILL TIME TO SET THINGS STRAIGHT IF ONLY BECAUSE BOTH IBERIA AND THE ARGENTINE GOVERNMENT HAVE A COMMON INTEREST IN THIS SAYS BANKER FELIPE DE LA BALZE THE TWO SIDES ARE CAUGHT THE GOVERNMENT BECAUSE IT CAN'T AFFORD THE BANKRUPTCY OF ONE OF ITS PRIVATIZATIONS BEFORE THE ELECTIONS IN SEPTEMBER AND IBERIA BECAUSE ITS SURVIVAL DEPENDS IN PART ON ITS LATIN AMERICAN STRATEGY HE ADDS BOTH SIDES HAVE ENOUGH MUSCLE TO KEEP IT GOING FOR A WHILE THE QUESTION IS ARE THEY DOING THE RIGHT THINGS TO FIX IT AND CAN THEY HANDLE THE DEBT 9305200080 930520 ENTERPRISE TALKING STRATEGY ADAPTABILITY OFTEN TURNS A BRIGHT IDEA INTO A BEACON BUT HARD PART FOR ENTREPRENEURS IS TO MAKE THEIR INNOVATIONS MARKETABLE BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL SOME OF THE BRIGHTEST BUSINESS INNOVATIONS COME FROM ENTREPRENEURS WHO KNOW HOW TO MINE THEIR EXPERIENCE FOR IDEAS BUT THE HARD PART OFTEN IS TURNING THE BRAINSTORM INTO A MARKETABLE PRODUCT A LOT OF PEOPLE HAVE THIS WONDERFUL IDEA FOR A PRODUCT OR SERVICE BECOME MARRIED TO IT AND CAN'T MODIFY IT SAYS ALAN CARSRUD A VISITING ASSOCIATE PROFESSOR OF ENTREPRENEURSHIP AT THE UNIVERSITY OF CALIFORNIA IN LOS ANGELES FOR THOSE ABLE TO ADAPT THEIR INNOVATIONS TO CUSTOMER NEEDS THOUGH THE REWARDS CAN BE BOUNTIFUL EIGHT YEARS AGO FLORI ROBERTS DEVELOPED SKIN CANCER ON HER NOSE AND HAD THE TUMOR SURGICALLY REMOVED SHE SAYS SHE SHOPPED FOR MAKEUP TO COVER THE HEALING SCAR BUT FOUND NOTHING BUT GREASY THEATRICAL MAKEUP UNSUITABLE FOR DAILY WEAR SO SHE DEVELOPED A PRODUCT CALLED DERMABLEND THAT SHE SAYS IS WATERPROOF LONGLASTING AND EASY TO USE AT FIRST SHE SOLD MAINLY THROUGH PHYSICIAN REFERRALS TO PEOPLE WITH SERIOUS SKIN FLAWS BUT THEY CONSTITUTED A LIMITED CUSTOMER POOL SO MS ROBERTS BEGAN TARGETING THE FAR LARGER MARKET OF PEOPLE WITH COSMETIC PROBLEMS SUCH AS DARK UNDEREYE CIRCLES AS A RESULT DERMABLEND SALES SHOT UP TO 54 MILLION IN 1987 FROM 700000 IN 1985 MS ROBERTS SAYS LAST YEAR SHE AND HER HUSBAND SOLD THEIR FLORI ROBERTS INC TO IVAX CORP FOR 20 MILLION SUCH FLEXIBILITY IS CRITICAL SAYS MORTON KAMIEN A PROFESSOR OF ENTREPRENEURSHIP AT NORTHWESTERN UNIVERSITY'S KELLOGG SCHOOL FLEXIBILITY IS THE DIFFERENCE BETWEEN BEING A SMALL BOUTIQUE AND A MAJOR FORCE IN THE MARKET HE SAYS SOMETIMES PERSONAL EXPERIENCES LEAD TO UNUSUAL WHIMSICAL PRODUCTS BUT WHIMSIES CAN BE SHORTLIVED AND ENTREPRENEURS WHO KNOW HOW TO ADAPT BUILD ON THE INITIAL SUCCESS WITH ANCILLARY ITEMS DAN HOARD'S BUSINESS VENTURE GREW OUT OF A VACATION CAPER FOUR YEARS AGO FOR EXAMPLE ON A TRIP THROUGH THE SOUTH PACIFIC HE CUT OFF THE BOTTOM OF HIS SURFING PANTS TO MAKE CUTOFF SHORTS THEN PULLED ONE OF THE DISCARDS ONTO HIS HEAD AS A JOKE WE FLOPPED THEM AROUND AND THOUGHT THEY WERE THE FUNNIEST THINGS EVER RECALLS THE 28YEAROLD MR HOARD THE MAMBOSOK AN INVENTED WORD FOR THIS FESTIVE HEAD SOCK WAS BORN MR HOARD AND HIS BUDDY TOM BUNNELL STARTED SELLING THE HEADGEAR THROUGH A SEATTLE TAVERN WHERE MR BUNNELL TENDED BAR THOUGH SALES TOOK OFF THE MEN SENSED A NEED TO DIVERSIFY THEIR PRODUCTS BEFORE THE GLOW WORE OFF THEY DEVELOPED COATS PANTS SHIRTS AND SHORTS PLUS DESIGN VARIATIONS ON THE HAT ALL MARKETED UNDER THE MAMBOSOK BRAND NAME THE PARTNERS CREDIT THE ADDITIONAL ITEMS FOR HELPING TO SUSTAIN THEIR COMPANY'S GROWTH THIS YEAR THEY EXPECT SALES TO REACH 3 MILLION TRIPLE LAST YEAR'S LEVEL EVEN IN BRAINSTORMING SESSIONS A KEY SOURCE OF INNOVATION FOR ESTABLISHED COMPANIES IDEAS THAT EMERGE FROM PARTICIPANTS' COLLECTIVE EXPERIENCE ARE OFTEN EXCEPTIONALLY FRUITFUL BUT THESE ALSO NEED ADAPTATION CONSIDER SERVICE ENHANCEMENT SYSTEMS INC A SAN RAFAEL CALIF FIRM THAT SELLS MAILING LISTS AT A MEETING TWO YEARS AGO MANAGERS NOTED THAT THE COMPANY'S RECESSION WARY ADVERTISING CLIENTS WERE LAYING OFF THEIR DESIGNERS OF DIRECTMAIL PIECES AND SURELY WOULD NEED OCCASIONAL DESIGN HELP THE GROUP SAW THE CHANCE FOR THE COMPANY TO OFFER A NEW SERVICE BY HIRING ITS OWN DESIGNERS BUT RESEARCH REVEALED THAT A DEPARTMENT COULD COST AS MUCH AS 400000 TO START LOOKING FOR CHEAPER ALTERNATIVES OWNER TED SHUEL TEAMED UP WITH A SMALL DESIGN FIRM AND OFFERED ITS SERVICES ON A SUBCONTRACT BASIS THE ARRANGEMENT PROVED SO SUCCESSFUL MR SHUEL SAYS THAT THE COMPANY LATER LINED UP PRINTING AND MAILING SUBCONTRACTORS TO ADD SERVICES THE DIVERSIFICATION HAS CONTRIBUTED TO A 60 GROWTH IN COMPANY SALES TO 4 MILLION IN TWO YEARS WHILE PROFIT MARGINS HAVE HELD STEADY HE SAYS SOMETIMES AN IDEA MUST BE ADAPTED SO EXTENSIVELY THAT THE ORIGINAL THOUGHT IS LARGELY LOST FOUR YEARS AGO CONNIE BOUCHER TOOK A TREK INTO MOUNTAINOUS RWANDA TO SEE ENDANGERED WILD GORILLAS SHE WAS CLIMBING OUT OF AN INACTIVE VOLCANO WHEN A GUIDE CALLED ATTENTION TO AN ADULT MALE GORILLA ALL OF A SUDDEN THE THING THAT WAS REALLY THRILLING THE FOUR MOTHERS WE'D HEARD DOWN AT THE BOTTOM OF THE VOLCANO CAME UP CARRYING THEIR BABIES TO JOIN THE MALE MS BOUCHER RECALLS THE EXPERIENCE INSPIRED MS BOUCHER AN OWNER OF DETERMINED PRODUCTIONS INC A SAN FRANCISCO DESIGN AND LICENSING FIRM TO INVOLVE HER COMPANY IN EFFORTS TO SAVE THE ANIMALS FROM EXTINCTION THE FIRM DEVELOPED REALISTIC RATHER THAN CUTESY STUFFED TOY GORILLAS SHE SAYS THE GORILLAS EXPENSIVELY CRAFTED FROM MANY PIECES OF PLUSH FABRIC RANGED IN PRICE FROM 18 FOR THE 12INCH MODEL TO 400 FOR THE THREEFOOTER SOME PROFITS WERE SET ASIDE FOR CONSERVATION EFFORTS HOWEVER CONSUMERS DIDN'T GO FOR THE TOYS' REALISTIC LOOK OR COST WE WERE AHEAD OF THE TIMES REFLECTS MS BOUCHER INSTEAD HER FIRM IS GEARING UP TO MASSPRODUCE MORE POPULARLY STYLED 12INCH GORILLAS MADE OF CHEAP NYLON AND FEWER PIECES AND PRICED AT 10 BUT UNFORTUNATELY NO AMOUNT OF TINKERING CAN SAVE PRODUCTS WITH FATAL FLAWS WHICH ARE OFTEN TOUGH TO SEE IN ADVANCE BRUCE KIRCHHOFF A PROFESSOR OF ENTREPRENEURSHIP AT NEW JERSEY INSTITUTE OF TECHNOLOGY IN NEWARK RECALLS A SERVICE HE HELPED TO LAUNCH IN 1983 HE AND HIS PARTNERS DREAMED UP A COMPUTERIZED SOUND SYSTEM FOR RETAILERS THAT CREATED SUBLIMINAL MESSAGES AIMED AT CONVINCING SHOPPERS NOT TO SHOPLIFT HE SAYS BUT THE CONCEPT FOUNDERED ON A BIG WORRY OF RETAILERS THEIR LEGAL LIABILITY HE SAYS RETAILERS FIGURED SHOPPERS MIGHT FILE LAWSUITS BLAMING THE MESSAGES FOR TRIGGERING SUICIDAL DEPRESSION IT WAS A REAL HIGHTECH PRODUCT BUT NOBODY WANTED IT MR KIRCHHOFF LAMENTS THE COMPANY SOLD ONLY TWO CONTRACTS SEEING NO WAY TO REMOVE THE RETAILERS' CONCERN THE ENTREPRENEURS FOLDED THE COMPANY 9305200079 930520 CUTTING EDGE STATE FUND GETS NICKED BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL IN 1987 WASHINGTON STATE'S PUBLIC EMPLOYEE PENSION FUND SCORED A BRILLIANT COUP BY SELLING ROUGHLY ONETHIRD OF ITS 6 BILLION STOCK PORTFOLIO JUST MONTHS BEFORE THE OCTOBER MARKET CRASH THE TIMELY MOVE HELPED CEMENT THE REPUTATION OF THE WASHINGTON STATE INVESTMENT BOARD AS A CUTTINGEDGE INVESTOR THAT STOOD OUT AMONG OTHER HUGE AND STODGY STATE AND LOCAL PENSION FUNDS THE FUND INVESTS THE PENSION MONEY OF 308000 PRESENT AND FORMER STATE EMPLOYEES BUT THEN THE WASHINGTON FUND MADE ANOTHER BIG MOVE THIS TIME INTO THE SORT OF TRENDY ALTERNATIVE INVESTMENTS THAT HAD RACKED UP SIZZLING PERFORMANCE EARLIER IN THE 1980S AND THAT WERE THE TALK OF THE PENSION WORLD THE FUND TOOK MORE THAN HALF OF THE STOCKSALE PROCEEDS AND PLOWED THEM INTO A SERIES OF JUMBO INVESTMENTS IN LEVERAGED BUYOUTS VENTURE CAPITAL AND MOST SIGNIFICANTLY A HUGE LEVERAGED BET ON COMMERCIAL REAL ESTATE BY MID1990 22 OF THE 134 BILLION FUND HAD BEEN SUNK INTO THOSE CATEGORIES MORE THAN ANY OTHER STATE FUND ACCORDING TO WASHINGTON STATE TREASURER DANIEL K GRIMM UNFORTUNATELY WASHINGTON'S BOLD MOVE BACKFIRED ITS RETURN ON ITS LBO INVESTMENT HAS ONLY ROUGHLY EQUALED THE STOCK MARKET ITS VENTURECAPITAL RETURNS HAVE BEEN A PALTRY 16 A YEAR LESS THAN A PASSBOOK SAVINGS ACCOUNT AND WORST OF ALL ITS BIG BET ON REAL ESTATE MADE AGGRESSIVELY AT THE TOP OF THE PROPERTY MARKET HAS PRODUCED LOSSES OF NEARLY 500 MILLION ALTOGETHER WASHINGTON'S ALTERNATIVE INVESTMENTS RETURNED ONLY 34 ANNUALLY DURING THE PAST FIVE YEARS DRAGGING DOWN THE PERFORMANCE OF THE ENTIRE RETIREMENT FUND WHICH NOW TOTALS 187 BILLION THE STATE WAS TRYING TO PUT A LARGE AMOUNT OF MONEY TO WORK IN A SHORT PERIOD OF TIME AND IT WAS DONE PRETTY MUCH BY THE SEAT OF THE PANTS SAID MR GRIMM WHO IS ALSO THE CURRENT CHAIRMAN OF THE STATE INVESTMENT BOARD WASHINGTON'S EXPERIENCE SHOWS THE DANGER FOR ANY INVESTOR BIG OR SMALL OF TRYING TO WIN BIG BY BETTING HEAVILY ON THE LATEST HOT INVESTMENT CATEGORY OVER THE YEARS INVESTORS HAVE LOST THEIR SHIRTS BETTING AT THE WRONG TIME ON GOLD A SHINING INVESTMENT IN THE 1970S AND ON TAKEOVER STOCKS AND FINE ART TWO HIGHLY TOUTED BUBBLES OF THE 1980S JOSEPH DEAR FORMER CHAIRMAN OF THE WASHINGTON INVESTMENT BOARD SAYS THE EPISODE ALSO SHOWS THE DIFFICULTY OF MARKET TIMING SELLING STOCKS WHEN THEY APPEAR OVERVALUED AND BUYING SOMETHING THAT APPEARS CHEAP INVESTORS HAVE TO BE RIGHT TWICE ON THE SALE AND THE FOLLOWUP PURCHASE TO GAIN A PERFORMANCE ADVANTAGE CREATED IN 1981 WITH THE MISSION OF DIVERSIFYING THE STATE'S INVESTMENTS AND MAXIMIZING RETURNS THE WASHINGTON INVESTMENT BOARD HAD A SUPERB REPUTATION THROUGH MUCH OF THE 1980S ITS EXECUTIVE DIRECTOR JOHN HITCHMAN LED THE STATE FUND TO INVEST AGGRESSIVELY IN STOCKS 50 OR MORE OF ASSETS AND IN LEVERAGED BUYOUTS THROUGH KOHLBERG KRAVIS ROBERTS & CO BOTH BETS PAID OFF HANDSOMELY THE FUND SHOWED STELLAR ANNUAL RETURNS OF MORE THAN 21 BETWEEN 1982 AND 1987 AS A RESULT WASHINGTON'S FUND FAR OUTPERFORMED OTHER PUBLIC FUNDS BETWEEN 1982 AND 1987 BUT MORE RECENTLY THE FUND HAS BEEN DRAGGED DOWN BY ITS REALESTATE AND VENTURE CAPITAL BETS IT HAD AN ANNUAL TOTAL RETURN OF 87 FOR THE PAST FIVE YEARS LAGGING BEHIND THE 10 RETURN OF COMPARABLE FUNDS IN THE SAME PERIOD THE BIGGEST DRAG ON THE STATE FUND HAS BEEN ITS HUGE 129 BILLION REALESTATE PORTFOLIO THE WORST DEAL THE STATE FUND PUT 450 MILLION INTO A SINGLE 2 BILLION ACQUISITION OF 52 OFFICE AND INDUSTRIAL PROPERTIES AROUND THE COUNTRY FROM CANADIAN DEVELOPER CADILLAC FAIRVIEW CORP THAT PURCHASE WAS PUT TOGETHER IN 1987 BY COPLEY REAL ESTATE ADVISERS INC THE REALESTATE UNIT OF NEW ENGLAND LIFE INSURANCE CO ALTHOUGH COPLEY ADVISED THAT THE STATE INVEST ONLY 250 MILLION THE WASHINGTON BOARD INSISTED ON PUTTING UP 82 OF THE 550 MILLION EQUITY FOR THE COPLEY PURCHASE THE RATIONALE WAS THAT THE STATE FELT IT WOULD HAVE MORE CONTROL OVER HOW THE PORTFOLIO WOULD BE MANAGED JAMES HOFFMAN A WASHINGTON STATE REALESTATE STAFFER BROUGHT IN TO HELP MOP UP THE DAMAGE SAYS THE REAL KILLER WAS THAT THE COPLEY PURCHASE WAS LEVERAGED 3TO1 FINANCED BY 15 BILLION OF DEBT WHEN COMMERCIAL PROPERTY VALUES STARTED FALLING ALMOST IMMEDIATELY THE LEVERAGED STRUCTURE MEANT THAT THE ENTIRE EQUITY IN THE DEAL COULD BE QUICKLY ERASED BY A 25 DROP IN MARKET VALUES BUT MR HITCHMAN THE BOARD'S EXECUTIVE DIRECTOR WAS ALREADY GONE BY THE TIME THE REALESTATE MARKET HEADED SOUTH HE LEFT TO JOIN A LOS ANGELES MONEY MANAGEMENT FIRM IN EARLY 1988 AFTER BEING LIONIZED FOR SHIFTING OUT OF STOCKS JUST BEFORE THE CRASH IT WAS HE WHO ENGINEERED WASHINGTON'S BIGGER INVESTMENTS IN REAL ESTATE VENTURE CAPITAL AND LBOS MR HITCHMAN DECLINED TO COMMENT MICHAEL PRENTISS FORMER PRESIDENT OF CADILLAC FAIRVIEW'S US UNIT WHO MANAGED THE PROPERTIES FOR COPLEY SAYS THE PORTFOLIO SUFFERED FROM OWNING THE HEADQUARTERS BUILDINGS OF THREE TEXAS BANKS THAT FAILED IT'S EASY TO LOOK BACK IN HINDSIGHT NOW AND SAY 1987 WAS THE TOP HE SAID BUT WHEN WE MADE THE ACQUISITION WE THOUGHT WE'D MADE A GOOD BUY COPLEY PRESIDENT JOSEPH O'CONNOR SAID THE WASHINGTON FUND WAS LOOKING FOR AN INVESTMENT THAT DIDN'T PERFORM IN LOCK STEP WITH THE STOCK AND BOND MARKETS AND THEY GOT THAT HE SAID BUT MR HOFFMAN THE WASHINGTON FUND STAFFER SAYS THE REALESTATE MANAGERS SHOULD HAVE ACTED SOONER TO PROTECT THE PORTFOLIO AGAINST THE PROPERTY DOWNTURN INSTEAD HE SAYS THEY USED PROCEEDS OF REALESTATE SALES TO BUY UNDEVELOPED LAND AS LATE AS DECEMBER 1988 MR PRENTISS SAYS STATE OFFICIALS APPROVED THOSE MOVES AT THE TIME MR GRIMM THE CURRENT BOARD CHAIRMAN WHO LED AN OVERHAUL OF THE FUND'S MANAGEMENT AFTER BEING ELECTED STATE TREASURER IN 1988 SAID HE BELIEVES THE FUND BECAME TOO HEAVILY WEIGHTED IN VENTURE CAPITAL LEVERAGED BUYOUTS AND REAL ESTATE WITHOUT ANY OVERALL ASSET ALLOCATION STRATEGY WHILE THE STATE FUND EARLIER RECEIVED ABOUT 45 MILLION FROM REALESTATE SALES A RECENT APPRAISAL BY SHEARSON CPR GROUP INC SAYS THAT THE REST OF WASHINGTON'S 450 MILLION EQUITY INVESTMENT IN THE FORMER CADILLAC FAIRVIEW PROPERTIES COULD BE WORTHLESS MEANWHILE THE REALESTATE MANAGERS HAVE CONSUMED FEES OF MORE THAN 100 MILLION FROM THE PORTFOLIO 82 OWNED BY THE WASHINGTON FUND COPLEY RECENTLY APPRAISED WASHINGTON'S INVESTMENT IN FIVE COPLEYMANAGED REALESTATE FUNDS THE DISMAL FINDINGS WASHINGTON'S 7409 MILLION INVESTMENT HAD PLUNGED BY 4894 MILLION IN MARKET VALUE OR 66 THROUGH THE END OF 1992 ANGERED BY THE WASHINGTON FUND'S PROBLEMS WITH REAL ESTATE AND VENTURE CAPITAL STATE OFFICIALS FORCED A SHAKEUP IN THE FUND'S MANAGEMENT DECISIONMAKING HAS BEEN SHIFTED FROM A RELATIVELY CLOSED BUT NIMBLE PROCESS DOMINATED BY A SMALL STAFF TO A MORE OPEN BUT MORE BUREAUCRATIC SYSTEM REPLETE WITH OUTSIDE CONSULTANTS THE STATE RECENTLY FORCED THE RESIGNATION OF COPLEY AS MANAGER OF THE FORMER CADILLAC FAIRVIEW REALESTATE PORTFOLIO IT HAS ALSO MOVED TO CONTEST A 25 MILLION TERMINATION FEE IN THE MANAGEMENT CONTRACT OF THE PROPERTY MANAGEMENT FIRM LED BY MR PRENTISS IT WAS FORMER EXECUTIVE DIRECTOR MR HITCHMAN'S SUCCESSOR DAVID WEIG WHO SUFFERED THE FALLOUT FROM THE REAL ESTATE AND VENTURECAPITAL INVESTMENTS THE INVESTMENT BOARD DECIDED IN 1990 NOT TO RENEW MR WEIG'S CONTRACT AFTER HE ACKNOWLEDGED THAT HE HADN'T READ A CONTRACT COVERING A TROUBLED VENTURECAPITAL INVESTMENT BEFORE SIGNING IT AS A RESULT THE BOARD FOUND IT HAD LITTLE LEGAL RECOURSE AGAINST A VENTURE FUND OPERATOR WHO PUT AN ENTIRE 35 MILLION FUND INTO A 100YEAROLD COMPANY IN BRITAIN RATHER THAN SOME FLEDGING COMPANY MR WEIG SAYS HIS DEPARTURE REFLECTED A CHANGE IN THE BOARD'S COMPOSITION WITH NEW DIRECTORS WHO WANTED TO BECOME MORE INVOLVED IN THE INVESTMENT PROCESS HE SAID COULD MORE LEGAL DUE DILIGENCE HAVE BEEN DONE ON THE VENTURE CONTRACT YES BUT THERE WAS AN ONGOING RELATIONSHIP BETWEEN THE STATE FUND AND THE VENTURE FUND'S GENERAL PARTNER MR WEIG NOTES THAT THE BOARD IS STILL PUTTING NEW MONEY INTO VENTURE CAPITAL MR HITCHMAN HIMSELF CAME UNDER FIRE AFTER HIS DEPARTURE WHEN THE SEATTLE POSTINTELLIGENCER REPORTED THAT HE HAD ACQUIRED STOCK IN SEVERAL COMPANIES THAT HAD RECEIVED INVESTMENTS FROM WASHINGTON'S VENTURECAPITAL FUNDS HE DECLINED TO COMMENT ON THE MATTER THE WASHINGTON FUND RECRUITED BASIL SCHWAN IN LATE 1991 FROM THE GIANT CALIFORNIA STATE PUBLIC EMPLOYEES RETIREMENT SYSTEM TO BE THE WASHINGTON BOARD'S EXECUTIVE DIRECTOR HE HAS BEEFED UP THE STAFF FROM 14 TO 35 PEOPLE AND BROUGHT IN OUTSIDE CONSULTANTS TO MONITOR THE PERFORMANCE OF INVESTMENT MANAGERS THE FUND HAS ALSO SET UP AN ASSET ALLOCATION POLICY LIMITING SOCALLED APPRAISED ASSETS REAL ESTATE VENTURE CAPITAL AND LEVERAGED BUYOUTS TO A MAXIMUM OF 15 OF THE ENTIRE PORTFOLIO 9305200078 930519 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9305200076 930520 WHO'S NEWS PARDUN NAMED HEAD OF NEW U S WEST MULTIMEDIA DIVISION ENGLEWOOD COLO U S WEST INC PICKED TOM PARDUN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS NEW U S WEST MULTIMEDIA COMMUNICATIONS GROUP FORMATION OF THE UNIT COINCIDES WITH U S WEST'S PLANNED ALLIANCE WITH TIME WARNER INC'S ENTERTAINMENT UNIT THE COMPANIES PLAN TO JOINTLY MANAGE A 5 BILLION UPGRADE OF TIME WARNER'S CABLE SYSTEMS OVER THE NEXT FIVE YEARS THAT WILL ENABLE THE SYSTEMS TO DELIVER TWOWAY MULTIMEDIA SERVICES INCLUDING VIDEO DATA AND VOICE SERVICES U S WEST MULTIMEDIA WILL MANAGE THE DEVELOPMENT OF FULLSERVICE NETWORKS IN THE US BUT OUTSIDE ITS OWN 14STATE TELEPHONE TERRITORY U S WEST IS ONE OF THE SEVEN REGIONAL BELL TELECOMMUNICATIONS COMPANIES CREATED IN THE BREAKUP OF THE BELL SYSTEM U S WEST CHAIRMAN RICHARD MCCORMICK SAID THE NEW UNIT WILL INVOLVE U S WEST IN NUMEROUS PARTNERSHIPS AND ALLIANCES IN CABLE/TELEPHONE ENTERTAINMENT AND INFORMATION SERVICES MR PARDUN 49 YEARS OLD HAS BEEN IN CHARGE OF LARGE BUSINESS AND GOVERNMENT SERVICES FOR U S WEST COMMUNICATIONS THE COMPANY'S TELEPHONE UNIT HE PREVIOUSLY WAS VICE PRESIDENT FOR MARKETING AND PLANNING FOR THE PHONE COMPANY BEFORE THAT HE WORKED FOR SPRINT CORP AND INTERNATIONAL BUSINESS MACHINES CORP 9305200075 930520 CREDIT RATINGS MBNA CORP NEWARK DEL MOODY'S INVESTORS SERVICE INC RAISED ITS LONGTERM DEBT RATING ON THE COMPANY AND ITS CHIEF BANKING UNIT ABOUT 500 MILLION IN SECURITIES WAS AFFECTED THE RATINGS CONCERN SAID THE UPGRADES REFLECT MBNA'S PROGRESS IN DIVERSIFYING ITS FUNDING BASE MOODY'S ADDED THAT MBNA CONTINUES TO HAVE STRONG PROFITABILITY GOOD REGULATORY CAPITAL AND POSITIVE ASSET QUALITY TRENDS THE CONSUMER BANKING COMPANY IS ONE OF THE LARGEST ISSUERS OF BANK CREDIT CARDS MOODY'S RAISED ITS SENIOR RATING ON MBNA TO SINGLEA3 FROM BAA2 AND THE RATING ON MBNA AMERICA BANK TO SINGLEA2 FROM BAA2 MELLON BANK CORP PITTSBURGH MOODY'S INVESTORS SERVICE INC SAID IT RAISED ITS RATINGS ON 35 BILLION OF DEBT HELD BY THIS BANKING CONCERN AND ITS MELLON BANK NA AND MELLON FINANCIAL CO UNITS THE RATINGS SERVICE SAID THE UPGRADE REFLECTS SEVERAL POSITIVE DEVELOPMENTS INCLUDING IMPROVED PROFITS CAPITALIZATION ASSET LEVELS LOAN LOSS RESERVE COVERAGE AND NET INTEREST MARGIN HOWEVER MOODY'S ADDED THAT ALTHOUGH CAPITALIZATION HAS IMPROVED MELLON'S TIER 1 AND LEVERAGE RATIOS ARE BELOW AVERAGE FOR A LARGE REGIONAL US BANK HOLDING COMPANY 9305200074 930520 TELECOMMUNICATIONS MCI DIALS UP NEW CONNECTION FOR COLLECT CALLS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL MCI COMMUNICATIONS CORP STARTED A LONGDISTANCE SERVICE AIMED AT WINNING A BIGGER SHARE OF THE HUGE COLLECTCALL MARKET BACKED WITH THE COMPANY'S BIGGEST MARKETING CAMPAIGN SINCE THE LAUNCH OF ITS SUCCESSFUL FRIENDS & FAMILY CONSUMER DISCOUNT PLAN TWO YEARS AGO MCI YESTERDAY BEGAN A RADIO TELEVISION AND NEWSPAPER AD BLITZ PROMOTING ITS 1800COLLECT SERVICE THE COMPANY HOPES TO BURN THE NUMBER INTO THE AMERICAN CONSCIOUSNESS MUCH AS THE 911 EMERGENCY NUMBER IS TODAY IN MANY AREAS BUT IN A DEPARTURE FROM ITS FRIENDS & FAMILY BLITZ THE NEW ADS WON'T MENTION MCI IT'S OUR FIRST UNBRANDED AD CAMPAIGN AN MCI SPOKESWOMAN SAYS WE'RE DOING IT THIS WAY BECAUSE EVERYBODY CAN USE THE SERVICE FROM ANY PHONE THE COLLECTCALL MARKET GENERATES REVENUE OF 3 BILLION A YEAR ABOUT 75 OF THE ONE BILLION COLLECT CALLS MADE ANNUALLY ARE CARRIED BY AMERICAN TELEPHONE & TELEGRAPH CO COMPARED WITH ONLY 11 FOR MCI AND 5 FOR SPRINT CORP DIALING A COLLECT CALL THROUGH MCI'S SERVICE IS A BIT MORE CUMBERSOME THAN THE STANDARD SYSTEM SINCE THE CALLER MUST FIRST DIAL 1800COLLECT INSTEAD OF A 0 BEFORE ASKING THE OPERATOR TO HANDLE THE CALL BUT MCI'S ADS PROMISE CALLERS SUBSTANTIAL SAVINGS FOR THEIR TROUBLE COMPARED WITH OTHER LONGDISTANCE COMPANIES GERALD H TAYLOR MCI'S CONSUMER MARKETS PRESIDENT SAID HE EXPECTS THE SERVICE TO NEARLY TRIPLE MCI'S SHARE OF THE COLLECTCALL MARKET TO 30 WITHIN A YEAR MCI SAID A NIGHTTIME THREEMINUTE OPERATORASSISTED COLLECT CALL TO MIAMI FROM SEATTLE COSTS 339 ON AT&T BUT ONLY 188 ON MCI A 45 SAVING SIMILARLY A THREEMINUTE CALL TO SAN JUAN PUERTO RICO FROM NEW YORK DURING THE BUSINESS DAY COSTS 350 ON AT&T AND 221 ON MCI A 37 DIFFERENCE BUT AN AT&T SPOKESMAN CALLED MCI'S SERVICE A MORE CUMBERSOME WAY OF REACHING AN OPERATOR HE SAID AT&T'S CUSTOMERS ARE WILLING TO PAY HIGHER CHARGES FOR AT&T COLLECT SERVICES THAT ARE VIRTUALLY IDENTICAL TO THOSE OFFERED BY MCI OUR OPERATORS HAVE AN AVERAGE OF 13 YEARS' EXPERIENCE HE SAID AND PEOPLE ARE WILLING TO PAY FOR THAT HIGHER LEVEL OF SERVICE A SPRINT SPOKESWOMAN SAID HER COMPANY'S FON CHARGE CARD IS JUST AS EASY FOR CUSTOMERS TO USE AS MCI'S SERVICE SPRINT'S CHARGES ARE COMPARABLE TO AT&T'S SHE SAID OUR SERVICE IS AVAILABLE FROM ALL PHONES SINCE THE FEDERAL COMMUNICATIONS COMMISSION RULED THAT ALL PHONES MUST BE ABLE TO HANDLE TOLLFREE 800 NUMBERS MR TAYLOR SAID AND YOU WILL BE CONNECTED DIRECTLY TO THE MCI NETWORK IT'S A SHREWD MOVE SAID JACK B GRUBMAN TELECOMMUNICATIONS ANALYST AT PAINEWEBBER INC ONCE AGAIN THIS IS AN EXAMPLE THAT MCI UNDERSTANDS THAT SELLING LONGDISTANCE SERVICE TO CONSUMERS IS A MARKETING GAME THEY ARE THE BEST IN THE INDUSTRY AT THIS SINCE ITS FRIENDS & FAMILY RESIDENTIAL DISCOUNT PLAN STARTED TWO YEARS AGO MORE THAN 10 MILLION SUBSCRIBERS HAVE SIGNED ON MOST OF THEM FORMER AT&T CUSTOMERS 9305200073 930520 TECHNOLOGY EMBATTLED DRUG INDUSTRY MAKES OFFER TO CLINTON 5000 SUMMER YOUTH JOBS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL THE PHARMACEUTICAL INDUSTRY IS HANDING THE CLINTON ADMINISTRATION A PEACE OFFERING 5000 SUMMER JOBS FOR DISADVANTAGED YOUTH THE JOBS ARE INTENDED FOR THE ADMINISTRATION'S SUMMER CHALLENGE PROGRAM A PET PROJECT OF THE PRESIDENT THE ADMINISTRATION ASKED PRIVATE INDUSTRY TO PROVIDE AN ADDITIONAL 300000 JOBS ABOVE THE MILLION IT USUALLY CREATES FOR SUMMER EMPLOYMENT IT ALSO SOUGHT TO DOUBLE PUBLICSECTOR JOBS TO 13 MILLION BUT THE FUNDING REQUEST HAS RUN INTO TROUBLE IN CONGRESS FORCING THE ADMINISTRATION TO RELY EVEN MORE HEAVILY ON PRIVATE INDUSTRY TO SALVAGE THE PROGRAM THE DRUG COMPANIES' CONTRIBUTION COMES AS THE WHITE HOUSE IS CONSIDERING REGULATING THE INDUSTRY AND AT THE NADIR OF THE INDUSTRY'S PUBLIC IMAGE BUT AMERICAN HOME PRODUCTS CORP WHICH SPEARHEADED THE INDUSTRY DRIVE SAID THE EFFORT WAS MADE OUT OF CIVIC DUTY AND WASN'T INTENDED TO INFLUENCE THE PRESIDENT'S HEALTHCARE POLICIES STILL IT'S SMART GOODWILLBUILDING FROM AN INDUSTRY THAT NORMALLY SHOOTS ITSELF IN THE FOOT WHEN IT COMES TO ITS PUBLIC IMAGE SAID AN ADMINISTRATION OFFICIAL CLOSE TO THE HEALTHCARE TASK FORCE THE DRUG COMPANIES' CONTRIBUTION OF 5000 JOBS IS THE LARGEST FROM ANY INDUSTRY SO FAR SAID KEITH POSTON SPOKESMAN FOR NATIONAL ALLIANCE OF BUSINESS WHICH IS COORDINATING THE PRIVATE INDUSTRY PORTION OF THE PROGRAM CALLED MEETING THE CHALLENGE THE 1300 JOBS PLEDGED BY AMERICAN HOME PRODUCTS IS ONE OF THE LARGEST FROM AN INDIVIDUAL COMPANY HE SAID THE DRUG INDUSTRY WAS THE ONLY ONE TO WORK TOGETHER TO CREATE JOBS HE ADDED THE PROGRAM IS ABOUT HALFWAY TOWARD ITS GOAL OF CREATING 300000 ADDITIONAL JOBS MR POSTON SAID ADDING THAT THE PEAK HIRING WILL HAPPEN IN NEXT FIVE TO SIX WEEKS AT A BREAKFAST MEETING WITH PRESIDENT CLINTON AND OTHER BUSINESS LEADERS IN APRIL AMERICAN HOME PRODUCTS CHAIRMAN JOHN R STAFFORD OFFERED HIS COMPANY'S PARTICIPATION AND VOLUNTEERED TO URGE HIS INDUSTRY COLLEAGUES TO JOIN IN HE SENT LETTERS TO THE HEADS OF 33 PHARMACEUTICAL COMPANIES ASKING THEM TO COMMIT TO THE PROGRAM THE FINAL TALLY IS STILL IN THE WORKS AN AMERICAN HOME PRODUCTS SPOKESMAN SAID BUT THE TOTAL NUMBER OF JOBS WILL TOP 5000 AMONG THE 20 COMPANIES THAT COMMITTED WERE PFIZER INC WITH 500 JOBS BRISTOLMYERS SQUIBB CO WITH 250 AND MERCK & CO ALSO WITH 250 PROCTER & GAMBLE CO WILL PARTICIPATE BUT HASN'T COMMITTED A SPECIFIC NUMBER OF JOBS YET A P&G SPOKESWOMAN SAID SOME HEALTHCARE TASK FORCE MEMBERS VIEWED AMERICAN HOME PRODUCTS' OFFER AS A DEFT PUBLIC RELATIONS MOVE ESPECIALLY BECAUSE THE COMPANY HAD HIRED 1000 SUMMER EMPLOYEES LAST YEAR AN AMERICAN HOME PRODUCTS SPOKESMAN SAID THE NEW OFFER WAS DIFFERENT FROM PREVIOUS YEARS BECAUSE IT SPECIFICALLY EMPHASIZES HIRING DISADVANTAGED YOUTH A NUMBER OF PHARMACEUTICAL COMPANIES HAVEN'T PLEDGED TO THE SUMMER CHALLENGE PROGRAM GLAXO INC A SUBSIDIARY OF GLAXO HOLDINGS PLC SAID IT HAS ITS OWN SUMMER JOBS PROGRAM TARGETED PRIMARILY TO EMPLOYEES' DEPENDENTS HOFFMANNLA ROCHE INC A UNIT OF ROCHE HOLDING LTD PHILOSOPHICALLY SUPPORTS THE SUMMER CHALLENGE REQUEST A SPOKESWOMAN SAID BUT THE COMPANY ISN'T PARTICIPATING BECAUSE IT'S ALREADY INVOLVED IN A NUMBER OF SIMILAR SUMMER JOBS PROGRAMS 9305200072 930520 MARKETING & MEDIA ADVERTISING CHEERS' FINALE MAY MARK END OF AN ERA FOR NETWORK TELEVISION BY KEVIN GOLDMAN PICTURE THIS IT IS THE YEAR 2004 AND THE LONGRUNNING HIT NBC SITCOM MAD ABOUT YOU IS AIRING ITS FINAL EPISODE AFTER 11 YEARS SO MANY LOOSE ENDS TO TIE UP JAMIE IS HAVING AN AFFAIR PAUL STILL HASN'T MADE A COMMERCIALLY SUCCESSFUL DOCUMENTARY AND MURRAY THE DOG DIED LONG AGO AND STILL HASN'T BEEN REPLACED IT IS HARD TO IMAGINE ANY NEW SERIES IN THESE FRAGMENTED CABLEBLITZED TIMES LASTING A DOZEN YEARS AND RETIRING AS A SHOW STILL BELOVED BY VIEWERS AND ADVERTISERS ALIKE BUT THAT HAPPENS TONIGHT WITH THE FINAL EPISODE OF NBC'S CHEERS IT MAY WELL MARK THE END OF AN ERA IT SEEMS HIGHLY IMPROBABLE THAT NETWORK TELEVISION WILL SEE THE LIKES OF A CHEERS FAREWELL MUCH LESS A SERIES AS HIGHLY POPULAR FOR SO MANY SEASONS EVER AGAIN THE ODDS OF THE NATION GATHERING AROUND THE ELECTRONIC HEARTH IN MASS NUMBERS FOR A SERIES SENDOFF ARE GETTING SLIMMER BECAUSE OF MAJOR CHANGES IN THE TELEVISION BUSINESS THE EVENTUAL ARRIVAL OF HUNDREDS OF CHANNELS THE RISE OF NASTY AND LESSTHANLIKABLE HUMOR AND SHIFTS IN ADVERTISER NEEDS WHEN CHEERS FIRST CAME UPON THE SCENE IN THE 198283 SEASON CABLE WAS HARDLY AN ANNOYANCE TO BROADCASTERS REACHING INTO ONLY 35 OF HOMES AND OFFERING STALE RERUNS OF ANDY GRIFFITH AND THE BEAVE THE THREE NETWORKS HAD A COMBINED 81 SHARE OF THE NIGHTLY AUDIENCE AS CHEERS CALLS LAST ROUND CABLE CAN NOW REACH ABOUT 90 OF ALL HOMES 60 OF HOMES ACTUALLY SUBSCRIBE AND ORIGINAL MOVIES AND TOPNOTCH RERUNS ARE THE NORM THE THREE MAJOR BROADCAST NETWORKS' COMBINED SHARE OF THE PRIMETIME AUDIENCE IS DOWN TO 60 BUT NETWORKS ARE DESPERATE TO SHOW MADISON AVENUE THAT WITH THE RIGHT PROGRAMMING THEY CAN STILL PACK 'EM IN AND THIS MONTH THEY SEEM TO BE HYPING SEASON FINALES MORE THAN EVER THE LONGAWAITED WEDDING ON COACH A ONEHOUR SPECIAL FOR SEINFELD THE SERIESENDING EPISODE FOR THE RESPECTED LIFE GOES ON JOHNNY CARSON AND ELIZABETH TAYLOR AS VOICEOVER GUESTS ON THE FINAL SEGMENT OF THE SIMPSONS THE PERFECTHAIRDAY CAST GRADUATING ON BEVERLY HILLS 90210 IT'S THE NETWORKS' FINAL BURST OF GRABBING BEFORE SHUTTING DOWN FOR THE SUMMER SAYS BOB SILBERBERG AN EXECUTIVE VICE PRESIDENT AT SAATCHI & SAATCHI'S BACKER BATES SPIELVOGEL CHEERS HOWEVER SETS A NEW RECORD FOR LASTEPISODE HOOPLA THE WISECRACKING COMEDY HAS ALWAYS BEEN A RARE WANNABUY FOR ADVERTISERS BECAUSE ITS AUDIENCE BROADENED THROUGH THE YEARS SAYS MR SILBERBERG IT'S UNIQUE THAT'S WHY ANHEUSERBUSCH APPLE COMPUTER COCACOLA DR PEPPER GENERAL MOTORS FORD'S LINCOLNMERCURY MCDONALD'S AND JC PENNEY AMONG OTHERS ARE BELLYING UP TO THE BAR TO RUN UP A TAB OF 650000 FOR A HALFMINUTE SPOT IN THE FINALE A RECORD FOR A NONSPORTS PROGRAM ADVERTISERS LOOK FOR EVENT PROGRAMMING TO REACH THE WIDEST AUDIENCE SAYS MR SILBERBERG WHO HAS A CLIENT IN THE FINALE MILLER BEER PERFECT SYNERGY BUT SUCH SHOWS ARE RARE AND THEIR CHANCES AT SUCCESS ARE UNPREDICTABLE WILD PALMS WHICH ABC BALLYHOOED AS AN EVENT SERIES IS A BUST FOR EXAMPLE MONDAY'S INSTALLMENT DREW ONLY 15 OF THE AUDIENCE AND FINISHED WAY BEHIND REGULAR SHOWS ON CBS AND NBC SO INSTEAD OF PINNING HOPES FOR HUGE AUDIENCES ON NETWORK FARE ADVERTISERS HAVE HAD TO BECOME MORE CREATIVE IN THE WAY THEY REACH AN AUDIENCE SOMETIMES BYPASSING THE BIG THREE IN FAVOR OF SMALLER OUTLETS WE HAVE TO CAST A LARGER NET TO CAPTURE THE AUDIENCE SHARE SAYS MR SILBERBERG THE PROGRAMS ON NOW THAT HAVE A CHANCE TO LAST MANY SEASONS ARE FAR DIFFERENT FROM CHEERS AND THAT MAY FURTHER DIM THEIR PROSPECTS OF OFFERING ADVERTISERS A HUGE FINAL FAREWELL AUDIENCE POPULAR SHOWS SUCH AS MURPHY BROWN ON CBS AND ROSEANNE ON ABC RELY ON CATTY AND NASTY HUMOR PLAYING DOWN WARMTH IN FAVOR OF PUTDOWNS AND ZINGERS THE STARS OF TODAY'S EDGIER SERIES ARE CONTROVERSIAL ON SCREEN AND IN THE CASE OF ROSEANNE AND TOM ARNOLD OFF THE AIR AS WELL IT THEREFORE SEEMS UNLIKELY THAT VIEWERS ARE GOING TO WAIT IN ANXIOUS ANTICIPATION FOR FINAL EPISODES ABOUT THE CONNERS FAMILY ROSEANNE OR EVEN GATHER IN EXTRAORDINARILY LARGE NUMBERS TO SAY TATA TO HOMER BART AND THE REST OF THE SIMPSONS ONCE THEY ARE READY TO SIGN OFF FOR GOOD AND DESPITE THE NEW HIGH IN HYPE FOR TONIGHT'S CHEERS THE BEST OF RETROSPECTIVE THE ACTUAL 98MINUTE FINAL SHOW THE POSTSHOW FESTIVITIES WITH JAY LENO HOSTING LIVE FROM THE ACTUAL BAR THE SHOW IS BASED ON IT IS UNLIKELY THAT THE RATINGS WILL BREAK ANY RECORDS THE SWAN SONG FOR MASH IN FEBRUARY 1983 DREW 1216 MILLION PEOPLE OR 77 OF THOSE WATCHING TELEVISION AN EXECUTIVE AT A RIVAL NETWORK DOUBTS CHEERS WILL COME EVEN CLOSE THERE'S TOO MUCH ELSE OUT THERE HE SAYS SORRY SAM REBECCA CARLA NORM CLIFF AND WOODY THE WORLD HAS CHANGED SINCE THEY OPENED THE BAR WHERE EVERYBODY KNOWS YOUR NAME SAATCHI & SAATCHI CO THE LONDON AGENCY HOLDING COMPANY SAID IT PLANS TO RAISE 73 MILLION 112 MILLION WITH A RIGHTS ISSUE TO ITS ORDINARYSHARE HOLDERS SAATCHI SAID IT WILL USE HALF OF THE PROCEEDS OR 56 MILLION TO PAY OFF ITS BANK DEBT THE COMPANY SAID IT WILL USE 29 MILLION TO BUY OUT SIGNIFICANT MINORITY SHARE HOLDINGS HELD BY MANAGEMENT OF SAATCHI UNITS IN EUROPE INCLUDING SAATCHI & SAATCHI ADVERTISING SPA IN ITALY AND UNITS IN GERMANY AND SPAIN ANOTHER 16 MILLION IS GOING TOWARD EXPANDING ZENITH MEDIA WORLDWIDE IN EUROPEAN MARKETS AS WELL AS TO INCREASING OPERATIONS OF SAATCHI & SAATCHI ADVERTISING AND BACKER SPIELVOGEL BATES IN EASTERN AND CENTRAL EUROPE CHINA AND LATIN AMERICA SAATCHI SAID IT WILL SPEND 11 MILLION ON UPGRADING TECHNOLOGY THE COMPANY IS OFFERING 10 NEW SHARES AT THE PRICE OF 130 PENCE 2 PER SHARE FOR EVERY 27 SHARES HELD ON MAY 12 1993 THE OFFER ALSO APPLIES TO US SHAREHOLDERS WHO ARE BEING OFFERED 10 NEW AMERICAN DEPOSITORY SHARES AT THE PRICE OF 390 PENCE PER SHARE FOR EVERY 27 SHARES HELD ON MAY 27 1993 THE OFFER INCLUDES 594 MILLION SHARES A SAATCHI SPOKESMAN SAID ABOUT 1597 SHARES ARE OUTSTANDING NOT INCLUDING THE NEW ISSUE QUEST CAMPAIGN SEAGRAM CO'S BEVERAGE UNIT IS LAUNCHING A NEW NATIONAL AD CAMPAIGN TODAY FOR QUEST ITS TWOCALORIE FRUITFLAVORED FIZZY WATER THE 15 MILLION CAMPAIGN FROM AGENCY WELLS RICH GREENE BDDP STARS JUDGE REINHOLD THE ACTOR BEST KNOWN FOR COMIC PERFORMANCES IN BEVERLY HILLS COP I AND II TV ADS WILL FIRST APPEAR MONDAY SHOWING REINHOLD ON A REFRESHMENT QUEST SIMILAR RADIO SPOTS BREAK TODAY 9305200071 930520 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY'S HIGHEST COURT HANDED DOWN A SPLIT DECISION ON OPENING POSTAL SYSTEMS IN THE EC TO COMPETITION FROM PRIVATE COURIER SERVICES THE COURT OF JUSTICE SAID NATIONAL POSTAL AUTHORITIES GENERALLY CAN'T FORBID COMPETITORS FROM OFFERING PREMIUM SERVICES SUCH AS HOME PICKUP OF LETTERS THAT AREN'T PROVIDED BY THE STATE BUT IT RULED THAT A COUNTRY COULD CHALLENGE IN ITS OWN COURTS THE COURIER SERVICES IF THEY UPSET THE POSTAL SYSTEM'S ECONOMIC EQUILIBRIUM THE CASE AROSE IN LIEGE BELGIUM WHERE IT WAS RETURNED FOR A FINAL DECISION THE EC COURT RULING IS IN LINE WITH AN EC PROPOSAL TO LIBERALIZE POSTAL SERVICES BY MAINTAINING NATIONAL SYSTEMS' EXCLUSIVE RIGHTS TO BASIC SERVICES BUT OPENING SOME SERVICES SUCH AS EXPRESS MAIL TO RIVALS BUT THE RULING'S EMPHASIS ON ECONOMIC EQUILIBRIUM GAVE THE EDGE TO EC MEMBERS' POSTAL AUTHORITIES AS IT BARS PRIVATE FIRMS FROM SKIMMING OFF DESIRABLE INTERCITY SERVICE AND LEAVING EXPENSIVE RURAL DELIVERY TO THE POST OFFICES DANISH VOTERS' APPROVAL OF THE EUROPEAN COMMUNITY UNIFICATION TREATY WILL MAKE IT EASIER TO ATTRACT FOREIGN INVESTMENT WHICH FELL SHARPLY WHEN DENMARK INITIALLY REJECTED THE ACCORD LAST YEAR THE COUNTRY'S CONSUL GENERAL IN NEW YORK SAID LEIF DONDE SAID DENMARK PLANS TO IMPROVE ITS BUSINESS CLIMATE THROUGH TAX REFORMS AND OTHER STIMULATIVE MEASURES AND TO STEP UP ITS CAMPAIGN FOR INVESTMENT BY US HIGHTECHNOLOGY COMPANIES FOREIGN INVESTMENT LAST YEAR TOTALED 66 BILLION KRONER 106 BILLION DOWN 41 FROM 1990 THE INTERNATIONAL TROPICAL TIMBER ORGANIZATION ADJOURNED ITS SEMIANNUAL COUNCIL MEETING IN MALAYSIA DIVIDED ON SETTING CONSERVATION STANDARDS FOR TIMBEREXPORTING COUNTRIES AN ACCORD THAT EXPIRES NEXT MARCH ESTABLISHED THE 49NATION GROUP AS A FORUM FOR COOPERATION BETWEEN PRODUCERS MAINLY DEVELOPING COUNTRIES AND CONSUMERS MAINLY DEVELOPED NATIONS MANY TIMBEREXPORTING COUNTRIES ARE FIGHTING ALLEGATIONS THAT THEY ARE DEPLETING A VITAL WORLD RESOURCE NEGOTIATIONS ON THE NEW PACT ARE BOGGED DOWN BY A DISPUTE ABOUT WHETHER TO COVER ALL TIMBER PRODUCERS NOT JUST THOSE IN THE TROPICS THE OUTLOOK IN THE WORKPLACE FOR JAPANESE COLLEGE STUDENTS WORSENED ALONG WITH THE ECONOMY COMPANIES PLAN TO REDUCE HIRINGS OF COLLEGE GRADUATES NEXT SPRING BY 17 FROM THIS YEAR'S LEVELS A NIHON KEIZAI SHIMBUN NEWSPAPER SURVEY OF 683 FIRMS FOUND THE BIGGEST REDUCTION SINCE 1988 MANUFACTURERS INTEND TO SCALE BACK GRADUATE HIRINGS 15 AND OTHER FIRMS 11 SOUTH KOREA'S POLITICAL PARTIES AGREED ON ETHICS LEGISLATION TO REQUIRE ABOUT 7000 GOVERNMENT OFFICIALS TO DISCLOSE THEIR PERSONAL ASSETS AND MAKE A CRIME OF USING OFFICIAL INFORMATION FOR FINANCIAL GAIN THE NATIONAL ASSEMBLY IS EXPECTED THIS WEEK TO PASS THE MEASURE PART OF A NEW CAMPAIGN AGAINST CORRUPTION IN ITS FIVE MONTHS IN OFFICE THE CIVILIAN GOVERNMENT HAS ARRESTED FIRED OR REPRIMANDED ABOUT 1000 OFFICIALS MILITARY OFFICERS EDUCATORS AND BUSINESSMEN IN CORRUPTION CASES THE BRITISH SOCIETY OF BUSINESS ECONOMISTS SAID A MODERATE ECONOMIC UPTURN HAS BEGUN AND WILL GATHER MOMENTUM SLOWLY THE GROUP'S FORECASTERS EXPECT GROSS DOMESTIC PRODUCT TO RISE 15 THIS YEAR 25 NEXT YEAR AND 23 IN 1995IF BRITAIN CAN SUSTAIN INCREASED INVESTMENT AND EXPORTS IT PREDICTED CONSUMER SPENDING WILL EXPAND JUST 19 THIS YEAR 21 NEXT YEAR AND 16 IN 1995 PARTLY REFLECTING SLUGGISH INCREASES IN PERSONAL INCOMES IT FORECAST INFLATION OF 38 THIS YEAR AND 45 IN 1994 AND 1995 FIXED INVESTMENT LED BY MANUFACTURING AND HOUSING IS SEEN RISING 12 THIS YEAR JACQUES ATTALI ALREADY UNDER FIRE FOR LAVISH SPENDING AT THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT VOWED TO SUE A FRENCH MAGAZINE FOR LIBEL FOR ACCUSING HIM OF PLAGIARISM MR ATTALI'S BOOK VERBATIM RECOUNTS HIS ROLE AS PRESIDENT FRANCOIS MITTERRAND'S AIDE IN THE EARLY 1980S LE NOUVEL OBSERVATEUR QUOTED A PUBLISHER AS SAYING MR ATTALI LIFTED 43 QUOTATIONS FROM MR MITTERRAND'S 1988 INTERVIEWS WITH THE AUTHOR ELIE WIESEL AND CREDITED ONLY THREE THE PUBLISHER HAS BEEN PREPARING TO ISSUE THE WIESELMITTERRAND DIALOGUE MR ATTALI PRESIDENT OF THE EBRD WHICH AIDS EAST EUROPEAN ECONOMIES SAID HE INITIATED MR WIESEL'S INTERVIEWS AND ATTENDED MOST OF THEM TAKING MINUTES HE SAID HE ALTERED TIME REFERENCES TO FLESH OUT HIS MITTERRAND PORTRAIT MR ATTALI SAID THE CONVERSATIONS WEREN'T COVERED BY ANY CONTRACT OR PUBLISHED AND HE HAD CLEARED USE OF THE QUOTES WITH MR MITTERRAND AND MR WIESEL SOUTH KOREAN LABORMANAGEMENT DISPUTES WHICH HAVE DISCOURAGED INVESTMENT SHRANK TO 22 IN THIS YEAR'S FIRST FOUR MONTHS FROM 55 A YEAR EARLIER THE IMPROVEMENT SLASHED COSTS OF LOST PRODUCTION 92 TO 1322 MILLION AND EXPORT LOSSES TO 253 MILLION FROM 1518 MILLION IN AN ECONOMIC SURVIVAL MOVE AFTER ALMOST FIVE MONTHS OF INDEPENDENCE SLOVAKIA IS RELUCTANTLY AND TEMPORARILY REVIVING LIMITED ARMS PRODUCTION ONCE THE WEAPONS LEADER IN CENTRAL EUROPE SLOVAK MUNITIONS FACTORIES WANT TO GENERATE MONEY TO CONVERT TO CIVILIAN INDUSTRIAL OUTPUT 9305200070 930520 BUSINESS BRIEF MAXXAM INC FIRM KAISER UNIT WILL POST NET LOSSES FOR THE 1993 YEAR MAXXAM INC AND ITS KAISER ALUMINUM CORP UNIT BOTH BESET BY RECENT LOSSES WILL REPORT NET LOSSES FOR 1993 DUE TO CHARGES TAKEN IN THE FIRST QUARTER AND CONTINUED SAGGING ALUMINUM PRICES EXECUTIVES OF THE COMPANIES SAID AT THEIR ANNUAL MEETINGS BOTH COMPANIES ARE BASED IN HOUSTON CHARLES E HURWITZ MAXXAM'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE ALUMINUM FOREST PRODUCTS AND REAL ESTATE CONCERN WILL REPORT A LOSS FOR THE YEAR DESPITE THE EXPECTED COMPETITIVE OPERATING PERFORMANCE OF THE COMPANY AND THE UNIT THE COMPANY WOULDN'T SPECIFY THE AMOUNT OF EITHER LOSS MR HURWITZ SAID THE IMPACT OF DECLINING ALUMINUM PRICES ON KAISER HAS ALSO AFFECTED MAXXAM BECAUSE THE 872OWNED UNIT ACCOUNTS FOR THE MAJORITY OF MAXXAM'S REVENUES MAXXAM TOOK A CHARGE OF 4177 MILLION OR 4414 A SHARE FOR THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES FOR POSTRETIREMENT BENEFITS AND INCOME TAXES AND AN EXTRAORDINARY LOSS OF 441 MILLION OR 466 A SHARE FOR THE EARLY RETIREMENT OF DEBT IN THE FIRST QUARTER BOTH ITEMS WERE AFTER TAXES KAISER TOOK A 218 MILLION CHARGE FOR THE EARLY EXTINGUISHMENT OF DEBT AND A 5073 MILLION CHARGE FOR THE EFFECT OF AN ACCOUNTING CHANGE IN THE FIRST QUARTER BOTH ITEMS WERE AFTER TAXES 9305200069 930520 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 2 15/16 HIGH 2 7/8 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 305 30 TO 59 DAYS 307 60 TO 89 DAYS 310 90 TO 119 DAYS 312 120 TO 149 DAYS 318 150 TO 229 DAYS 325 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 310 30 DAYS 312 60 DAYS 315 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 303 ONE MONTH 310 THREE MONTHS 318 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 301 60 DAYS 303 90 DAYS 305 120 DAYS 308 150 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 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 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 737 60 DAYS 746 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 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 9305200068 930520 CORRECTIONS & AMPLIFICATIONS EASTMAN KODAK CO ANALYST EUGENE GLAZER OF DEAN WITTER REYNOLDS INC DOWNGRADED HIS OPINION ON KODAK'S STOCK FROM BUY TO NEUTRAL ON FEB 10 1993 TUESDAY'S HEARD ON THE STREET COLUMN INCORRECTLY SAID THAT MR GLAZER DOWNGRADED THE STOCK ON APRIL 28 WHEN KODAK ANNOUNCED THAT FINANCE CHIEF CHRISTOPHER J STEFFEN HAD QUIT TASK MANAGEMENT INC RIVERSIDE ILL DEVELOPED AND OWNS THE SOFTWARE THAT WILL BE USED IN THE ACCESS AFTERHOURS ELECTRONIC TRADING SYSTEM BEING STARTED BY THE NEW YORK MERCANTILE EXCHANGE NEXT MONTH THE MAY 10 COMMODITIES COLUMN FAILED TO MENTION THE COMPANY AS THE SOFTWARE DEVELOPER FOR THE NEW SYSTEM 9305200067 930520 BUSINESS BRIEF DRESS BARN INC QUARTERLY PROFIT FELL 27 BAD WEATHER SLUMP CITED DRESS BARN INC POSTED A 27 DECREASE IN THIRDQUARTER NET INCOME THE OFFPRICE WOMEN'S APPAREL CHAIN SAID NET FOR THE QUARTER ENDED APRIL 24 WAS 35 MILLION OR 16 CENTS A SHARE COMPARED WITH THE YEAREARLIER PERIOD'S 48 MILLION OR 22 CENTS A SHARE REVENUE ROSE 5 TO 952 MILLION FROM 91 MILLION THE STAMFORD CONN COMPANY CITED BAD WEATHER IN MUCH OF THE COUNTRY AND A CONTINUING SOFTNESS IN CONSUMER CONFIDENCE FOR THE DIMINISHED NET BUT IT SAID IT IS CAUTIOUSLY OPTIMISTIC THAT FOURTHQUARTER RESULTS WILL IMPROVE NET FOR THE NINE MONTHS ROSE 19 TO 124 MILLION OR 56 CENTS A A SHARE FROM 104 MILLION OR 48 CENTS A SHARE THE COMPANY SAID IT IS CONTINUING AN EXPANSION CAMPAIGN BY LAUNCHING 33 STORES DURING THE PAST QUARTER WITH AN ADDITIONAL 22 OPENINGS SET FOR THIS QUARTER 9305200066 930520 ECONOMY TRADE GAP GREW TO 1021 BILLION DURING MARCH DEFICIT HIT 4YEAR HIGH TOTAL IS LIKELY TO LOWER FIGURE FOR US GROWTH BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US TRADE DEFICIT DETERIORATED TO 1021 BILLION IN MARCH THE COMMERCE DEPARTMENT SAID THE WIDEST GAP IN NEARLY FOUR YEARS FEBRUARY'S DEFICIT WAS 791 BILLION ALTHOUGH ANALYSTS SAID SUCH A LARGE TRADE IMBALANCE ISN'T LIKELY TO REPEAT ITSELF THE MARCH NUMBERS ARE LIKELY TO LOWER THE DEPARTMENT'S ESTIMATE FOR TOTAL ECONOMIC GROWTH IN THE FIRST QUARTER THE INITIAL ESTIMATE WAS ALREADY A PALTRY 18 ANNUAL RATE BUT ANALYSTS SAID THAT WHEN THE GOVERNMENT RELEASES ITS FIRST REVISION OF THE NUMBERS NEXT WEEK THE GROWTH RATE WILL PROBABLY BE MUCH CLOSER TO 1 THE POOR TRADE SHOWING WAS THE RESULT OF A SURGE IN IMPORTS WHICH ANALYSTS SAY CAN'T BE SUSTAINED IMPORTS GREW BY 437 BILLION TO 4920 BILLION AFTER FALLING IN FEBRUARY THERE IS NO EVIDENCE THAT THERE IS SUCH A STRONG LEVEL OF CONSUMER DEMAND OUT THERE SAID BRUCE STEINBERG SENIOR ECONOMIST FOR MERRILL LYNCH & CO IN NEW YORK A LOT OF THOSE IMPORTS ARE PROBABLY SITTING ON RETAIL AND WHOLESALE SHELVES NOW ANALYSTS SUPPOSED THAT LAST FALL WHEN ORDERS WERE BEING PLACED FOR SPRING BUSINESS LEADERS WERE MORE OPTIMISTIC ABOUT THE PENDING HEALTH OF THE ECONOMY THE BIG JUMP IN IMPORTS DURING MARCH WAS CONCENTRATED IN CONSUMER GOODS EXCLUDING AUTOMOBILES AND INDUSTRIAL MATERIALS EXPORTS ALSO GREW IN MARCH AT A PACE ANALYSTS SAID WAS A BLIP AND WOULDN'T BE CONTINUED BECAUSE OF THE FUNDAMENTAL ECONOMIC WEAKNESS OF MANY US TRADING PARTNERS THE US SOLD 39 BILLION OF GOODS ABROAD IN MARCH 204 BILLION MORE THAN IT DID THE MONTH BEFORE CONCENTRATED MAINLY IN CAPITAL GOODS INDUSTRIAL SUPPLIES AND CONSUMER GOODS FROM THESE NUMBERS WE SHOULDN'T THINK THAT ALL OF A SUDDEN THERE'S BEEN A GREAT DETERIORATION IN US COMPETITIVENESS IN THE COMING MONTHS THE TRADE GAP WILL MOVE BACK TO 75 BILLION MR STEINBERG SAID THE DEFICIT WITH JAPAN AND THE US SURPLUS WITH WESTERN EUROPE BOTH WORSENED SIGNIFICANTLY IN MARCH THE DEFICIT IN JAPAN WIDENED TO 526 BILLION FROM 413 BILLION AND THE SURPLUS WITH WESTERN EUROPE NARROWED TO 437 MILLION FROM 142 BILLION THE MONTH BEFORE AFTER JAPAN THE SECOND LARGEST TRADE DEFICIT THE US HELD WAS WITH CHINA THE CLINTON ADMINISTRATION MUST SOON DECIDE WHETHER TO CONTINUE PROVIDING THAT COUNTRY WITH LOW TARIFFS OR REVOKE THEM BECAUSE OF HUMAN RIGHTS VIOLATIONS WHEN THE TRADE FIGURES WERE FIRST RELEASED YESTERDAY COMMERCE SECRETARY RONALD BROWN ISSUED A STATEMENT SAYING THAT ONE OF THE WAYS THE BIG TRADE IMBALANCE WITH JAPAN SHOULD BE CORRECTED IS BY MARKETDRIVEN EXCHANGE RATE CORRECTIONS NEWS OF THAT IN THE MARKETS CAUSED THE DOLLAR TO PLUNGE AGAINST THE YEN IN FOREIGN EXCHANGE MARKETS LATER A COMMERCE DEPARTMENT SPOKESMAN SAID THAT MR BROWN'S STATEMENT WASN'T A SUGGESTION THAT THE US IS DEVELOPING A POLICY OF FOREIGN EXCHANGE MANIPULATION AFTER THAT STATEMENT THE DOLLAR WENT BACK UP 9305200065 930520 HEALTH REFORM MAY COST MORE FOR UNINSURED CLINTON CONSIDERS EASING INITIAL COST TO FIRMS WITH WORKER PAYMENTS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LOOKING FOR WAYS TO EASE THE BURDEN ON SMALL EMPLOYERS THE CLINTON ADMINISTRATION IS CONSIDERING REQUIRING THOSE WHO ARE CURRENTLY UNINSURED TO PAY MORE OUTOFPOCKET EXPENSES FOR HEALTH BENEFITS THAN EVERYONE ELSE FOR A FEW YEARS UNDER THIS SCENARIO WHICH OFFICIALS SAID HAS BEEN SERIOUSLY DISCUSSED FOR ABOUT A WEEK THE NATION'S UNINSURED WOULDN'T REALIZE THE FULL GENEROSITY OF THE CLINTON HEALTH SYSTEM AS QUICKLY AS PREVIOUSLY CONSIDERED THESE INDIVIDUALS WOULD BE GUARANTEED THE SAME MEDICAL SERVICES OR ONLY A SLIGHTLY LESS COMPREHENSIVE PACKAGE THAN THOSE CURRENTLY INSURED BUT THEY WOULD HAVE TO PAY MORE OUTOFPOCKET EXPENSES IN THE FORM OF COPAYMENTS FOR DOCTOR'S VISITS OR ANNUAL INSURANCE DEDUCTIBLES MORE THAN HALF OF THE COUNTRY'S 37 MILLION UNINSURED ARE WORKING ADULTS ACCORDING TO THE EMPLOYEE BENEFIT RESEARCH INSTITUTE FOR THE UNINSURED PEOPLE WHO ARE POOR AND UNEMPLOYED THE ADMINISTRATION HAS SAID IT WOULD LIKELY PROVIDE SUBSIDIES TO HELP THEM AFFORD THE BENEFITS PACKAGE THAT ALL AMERICANS WOULD BE GUARANTEED THE POSSIBLE STRATEGY HAS EMERGED AS PRESIDENT CLINTON IS SET TO BEGIN DECIDING EXACTLY WHAT SHOULD BE INCLUDED IN THE HEALTHREFORM PLAN AND HOW TO PAY FOR IT OFFICIALS POINT OUT THAT EVEN IF THE UNINSURED ARE REQUIRED TO PAY MORE AT THE START FOR THEIR BENEFITS THEY WOULD STILL BE BETTER OFF THAN THEY ARE NOW THEY ALSO STRESS THAT THE MOVE WOULD BE TEMPORARY AND THAT EVENTUALLY EVERYONE WOULD HAVE THE SAME LEVEL OF EXPENSES FOR THE FEDERALLY GUARANTEED BENEFITS PACKAGE STILL THE IDEA COULD BE TRICKY TO SELL IF THE PUBLIC PERCEIVES THAT THE ADMINISTRATION IS ENDORSING A TWOTIER HEALTH SYSTEM THERE WOULD BE TWO ADVANTAGES TO THE INTERIM ARRANGEMENT OFFICIALS SAID FIRST IF THOSE PRESENTLY UNINSURED HAVE TO PAY RELATIVELY MORE FOR THEIR BENEFITS FOR A FEW YEARS IT WOULD HELP HOLD DOWN THE SYSTEM'S OVERALL COST UNTIL IT IS UP AND RUNNING FOR A WHILE INDEED CLINTON OFFICIALS INDICATED THAT THE STRATEGY REFLECTS A GROWING SENSE OF CAUTION AMONG SOME OF THE PRESIDENT'S ADVISERS THE SECOND ADVANTAGE OF PHASING IN COVERAGE FOR THE UNINSURED IS THAT IT COULD EASE THE BURDEN OF THE NEW HEALTH SYSTEM ON THE MANY SMALL BUSINESSES AND OTHER FIRMS THAT CURRENTLY DON'T PROVIDE COVERAGE FOR THEIR WORKERS THE ADMINISTRATION HAS MADE CLEAR THAT ITS PROPOSAL WOULD MANDATE THAT ALL EMPLOYERS CONTRIBUTE TO THE HEALTH COVERAGE OF THEIR WORKERS THROUGH EITHER A PAYROLL TAX OR THE DIRECT PURCHASE OF INSURANCE THUS IF THOSE CURRENTLY UNINSURED PAY MORE OUT OF THEIR OWN POCKETS THEIR EMPLOYERS WOULD HAVE TO CONTRIBUTE LESS HOWEVER SOME ARE SKEPTICAL JOHN MOTLEY A LOBBYIST FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS SAID THAT WHILE A PHASEIN APPROACH COULD MITIGATE THE LOSS OF JOBS THE SYSTEM ULTIMATELY WOULD HAVE THE BUSINESS COMMUNITY BE RESPONSIBLE FOR FINANCING HEALTH CARE FOR ALL AMERICANS AND THAT HE SAID WAS INTOLERABLE HILARY STOUT CONTRIBUTED TO THIS ARTICLE 9305200064 930520 BUSINESS BRIEF BAUSCH & LOMB INC SKINCARE LINES ARE BOUGHT FROM SC JOHNSON & SON BAUSCH & LOMB INC IN A MOVE TO ENTER THE SKINCARE BUSINESS SAID IT SIGNED A DEFINITIVE AGREEMENT TO BUY TWO PRODUCT LINES FROM CLOSELY HELD SC JOHNSON & SON INC RACINE WIS TERMS WEREN'T DISCLOSED THE TWO MOISTURIZER PRODUCTS CUREL AND SOFT SENSE HAVE COMBINED ANNUAL SALES OF 45 MILLION BAUSCH & LOMB ROCHESTER NY SAID THE ACQUISITIONS WON'T HAVE A MATERIAL EFFECT ON THIS YEAR'S EARNINGS BAUSCH & LOMB HAD PLANNED TO ENTER THE MARKET EARLIER BY BUYING PRODUCT LINES FROM EASTMAN KODAK CO'S STERLING WINTHROP PHARMACEUTICAL UNIT THE PROPOSED DEAL VALUED AT MORE THAN 15 MILLION ACCORDING TO FEDERAL TRADE COMMISSION FILINGS FELL THROUGH LAST DECEMBER A WEEK AFTER IT WAS ANNOUNCED ALTHOUGH NEITHER COMPANY SPECIFIED THE NAME OF THE LINES TO BE SOLD IN THAT DEAL BAUSCH & LOMB WAS THOUGHT AT THE TIME TO BE NEGOTIATING TO BUY STERLING'S PRESCRIPTION DISINFECTANT AND SKIN CLEANSER PHISOHEX AND NONPRESCRIPTION PHISODERM 9305200063 930520 BUSINESS BRIEF JLG INDUSTRIES INC FIRM POSTS 3RDQUARTER NET LETTER DETAILS GROVE'S OUSTER JLG INDUSTRIES INC REPORTED A THIRDQUARTER PROFIT AND IN AN UNUSUAL LETTER TO SHAREHOLDERS DETAILED SOME OF THE INFIGHTING THAT LED TO THIS MONTH'S OUSTER OF THE COFOUNDER AND CHAIRMAN OF THE MCCONNELSBURG PA HYDRAULIC MACHINERY MAKER JOHN L GROVE THE THREEPAGE LETTER SIGNED BY PRESIDENT AND CHIEF EXECUTIVE OFFICER L DAVID BLACK ALLEGED THAT IN 1992 AFTER MR GROVE STEPPED ASIDE AS CHIEF EXECUTIVE HE OFTEN COUNTERMANDED MANAGEMENT DECISIONS THUS CREATING UNCERTAINTY ABOUT MANAGEMENT'S AUTHORITY AND THE COMPANY'S DIRECTION AT A CRITICAL TIME TO FIX THAT PROBLEM JLG'S BOARD INSTRUCTED MR GROVE TO LIMIT HIS ROLE TO THAT OF AN OUTSIDE DIRECTOR BY NOT INTERFERING WITH DAYTODAY OPERATIONS MR BLACK WROTE A SPOKESMAN FOR MR GROVE SAID THE OUSTED CHAIRMAN IS REVIEWING THE LETTER AND CONSIDERING WHETHER TO MAKE A STATEMENT HE DECLINED FURTHER COMMENT FOR THE QUARTER ENDED APRIL 30 JLG EARNED 11 MILLION OR 30 CENTS A SHARE ON SALES OF 33 MILLION IN THE YEAREARLIER QUARTER JLG HAD A LOSS OF 385000 OR 11 CENTS A SHARE ON SALES OF 31 MILLION 9305200062 930520 WORLD MARKETS EQUITY PRICES FIRM IN TOKYO DROP IN LONDON DASHED RATE HOPES PUSH FRANKFURT STOCKS DOWN A WALL STREET JOURNAL NEWS ROUNDUP EQUITIES FIRMED WEDNESDAY IN TOKYO THOUGH DEALINGS WERE LISTLESS LONDON SHARES SLUMPED AS INVESTORS GOT A CASE OF THE NERVES IN FRANKFURT DASHED HOPES THAT GERMANY WOULD SOON CUT INTEREST RATES PUSHED STOCK PRICES LOWER WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10529 UP 105 REFLECTING INCREASES IN MARKETS IN THE AMERICAS AND IN THE ASIA/PACIFIC REGION AND A DROP IN EUROPEAN MARKETS FOREST PRODUCTS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14198 UP 508 OR 37 WITH WEYERHAEUSER OF THE US POSTING A 56 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 12900 DOWN 387 OR 29 WITH HOMESTAKE MINING OF THE US SLIDING 12 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SANK 33612 POINTS TUESDAY CLIMBED 15140 TO 2038079 WHICH ALSO MARKED THE INTRADAY HIGH ON THURSDAY THE NIKKEI INDEX FELL 17890 POINTS TO CLOSE THE MORNING SESSION AT 2020189 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 380 MILLION SHARES LITTLE CHANGED FROM 3801 MILLION SHARES A DAY EARLIER GAINERS OUTNUMBERED LOSERS 595423 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 2197 POINTS TUESDAY ROSE 868 TO 159796 TOKYO TRADING REMAINED BECALMED AS INVESTORS SORTED OUT A STREAM OF CORPORATE EARNINGS REPORTS FOR THE LATEST FISCAL YEAR PRICES FELL AT THE OPENING AS FUTURES PRICES DECLINED PROMPTING INDEXLINKED ARBITRAGE SELLING BUT THIS EVAPORATED IN THE FACE OF A SMALL AMOUNT OF BUYING BY PUBLIC PENSION FUNDS AND DEALERS IN AFTERNOON SESSION A JUMP IN GOLD PRICES LIFTED METALS ISSUES SMALLCAPITALIZATION STOCKS FELL IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 276 POINTS TO 28197 THE FT 30STOCK INDEX SANK 223 POINTS OR 1 TO 21942 VOLUME WAS 6459 MILLION SHARES COMPARED WITH 6334 MILLION SHARES A DAY EARLIER AMID THE GENERAL ANXIETY EVEN SLIGHT DISAPPOINTMENTS INFLUENCED THE LONDON MARKET WHEN GERMANY DIDN'T TINKER WITH INTEREST RATES THE LONDON FUTURES MARKET FELL REFLECTING FRUSTRATION THAT BRITISH RATES MAY BE STUCK FOR A WHILE IN FRANKFURT THE DAX 30STOCK INDEX FELL 1107 POINTS TO 161741 IN QUIET TRADING AHEAD OF A HOLIDAY TODAY THAT WILL CLOSE ABOUT 10 EUROPEAN MARKETS SHARE PRICES YESTERDAY OPENED SLIGHTLY WEAKER AND WERE PUSHED DOWN SHARPLY WHEN THE GERMAN BUNDESBANK THE CENTRAL BANK REPORTED THAT THE M3 MONEY SUPPLY EXPANDED IN MARCH WELL ABOVE THE TARGET RANGE THIS MAY AROUSE NEW INFLATION CONCERNS AT THE CENTRAL BANK AND IT HELPED SQUELCH FRANKFURT INVESTORS' HOPES FOR A LENDINGRATE REDUCTION THIS WEEK SLOWER REDUCTIONS IN GERMAN RATES COULD HINDER EASINGS ELSEWHERE IN EUROPE AS COUNTRIES TRY TO KEEP THEIR CURRENCIES IN ALIGNMENT THE SIGNIFICANCE OF STABILITY FROM DENMARK'S APPROVAL TUESDAY OF A EUROPEAN COMMUNITY UNITY TREATY FADED FOR FRANKFURT INVESTORS THOUGH GERMANY SET BACK HOPES FOR RAPID MONETARY EASING TO HELP TURN EUROPE'S RECESSION AROUND DENMARK PORTUGAL AND SWEDEN CUT OFFICIAL INTEREST RATES AFTER DANISH VOTERS REVIVED PLANS FOR EUROPEAN COMMUNITY MONETARY UNION BY APPROVING THE EC UNIFICATION PLAN THE REFERENDUM OUTCOME WITHDREW ENOUGH PRESSURE FROM THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM TO ALLOW THE RATE REDUCTIONS AND BELGIUM AND THE NETHERLANDS REDUCED FURTHER THEIR CENTRAL BANK OPENMARKET RATES IN PARIS STOCKS SLUMPED ON GERMANY'S RATE RETICENCE SOME LIQUIDATIONS AND PREHOLIDAY POSITIONSQUARING AND WALL STREET'S EARLY WEAKNESS THOUGH LATE BARGAINHUNTING LIFTED PRICES FROM LOWS AMSTERDAM SHARES SLID ON WORRIES ABOUT A POSSIBLE GLOBAL PRICE IN CONSUMER PRODUCTS AND FOODS AND ON NEWS OF A LARGERTHANEXPECTED US TRADE DEFICIT MILAN PRICES SURGED ON STRONG OPTIMISM ABOUT AN ITALIAN RATE CUT AND THE NEW GOVERNMENT'S PROSPECTS IN MADRID AND IN STOCKHOLM SHARES FELL ON PROFITTAKING IN SYDNEY STOCKS WERE MIXED TO HIGHER BUT GOLD STOCKS SURGED AFTER THE PRICE OF BULLION CLIMBED HONG KONG SHARES FELL ON PROFITTAKING AFTER RECENT RALLIES SEOUL PRICES SCORED THEIR THIRD CONSECUTIVE ADVANCE ON BUYING BY INSTITUTIONAL INVESTORS AMONG CORPORATE DEVELOPMENTS IN TOKYO SEGA ENTERPRISES JUMPED 200 YEN OR 2 TO 9970 YEN 8946 THE VIDEO GAME MAKER'S CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 SOARED 60 TO 5739 BILLION YEN 515 MILLION FROM A YEAR EARLIER IN LINE WITH UNCONSOLIDATED RESULTS RELEASED LAST WEEK SEGA FORECAST A 14 RISE TO 655 BILLION YEN IN PRETAX PROFIT FOR THE CURRENT FISCAL YEAR YAMAHA CORP ROSE 10 TO 1130 THE MAKER OF MUSICAL INSTRUMENTS REPORTED THAT UNCONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 PLUNGED 59 TO 279 BILLION YEN HIT BY WEAK DEMAND THE YEN'S STRENGTH AND RESTRUCTURING COSTS THE DIVIDEND WAS CUT 40 TO 6 YEN A SHARE YAMAHA PREDICTED THE PARENT'S PRETAX PROFIT FOR THE CURRENT YEAR WILL FALL 10 TO 25 BILLION YEN IN LONDON ALLIEDLYONS PLUMMETED 12 PENCE OR 22 TO 531 PENCE 815 THE FOOD AND BEVERAGE COMPANY ISSUED 200 MILLION 307 MILLION OF 6 3/4 GUARANTEED CONVERTIBLE SUBORDINATED BONDS DUE 2008 WITH PROCEEDS TO BE USED FOR GENERAL CORPORATE PURPOSES ALLIED ALSO CONFIRMED THAT THE LONDON EXCHANGE WILL INVESTIGATE A LEAK TO FINANCIAL MARKETS OF THE BOND ISSUE WHICH HAD BEEN RUMORED LAST WEEKEND BASS PLUNGED 50 OR 94 TO 483 THE BREWER'S PRETAX PROFIT FOR THE 28 WEEKS ENDED APRIL 10 FELL 14 TO 228 MILLION HURT BY SLUMP IN BASS'S EUROPEAN HOTEL BUSINESS THE RESULTS WERE LOWER THAN THE MARKET HAD EXPECTED THE INTERIM DIVIDEND OF 545 PENCE A SHARE UP 38 WAS IN LINE WITH PREVIOUS ESTIMATES IN FRANKFURT DEUTSCHE BANK DROPPED 550 MARKS TO 691 MARKS 42559 THE BANK GERMANY'S LARGEST TOLD SHAREHOLDERS IT EXPECTS SATISFACTORY 1993 RESULTS FOR THIS YEAR DESPITE THE COUNTRY'S RECESSION THOUGH IT DIDN'T SPECIFY FIGURES DEUTSCHE BANK ALSO SAID IT WOULD CONSIDER INCREASING ITS 1993 DIVIDEND IF WARRANTED BY EARNINGS THE 1992 PAYOUT WAS 15 MARKS A SHARE IN SYDNEY THE RETAILER WOOLWORTHS ANNOUNCED WHAT WOULD BE AUSTRALIA'S BIGGESTEVER INITIAL PUBLIC OFFERING ONE BILLION SHARES AT 245 AUSTRALIAN DOLLARS US169 EACH WOOLWORTHS WHICH IS TO BE LISTED JULY 12 IS OWNED BY ADELAIDE STEAMSHIP AND ITS ASSOCIATES DAVID JONES AND TOOTH ADSTEAM SHARES ROSE 1 CENT TO 18 CENTS 12 US CENTS AND DAVID JONES JUMPED 6 CENTS OR 16 TO 43 CENTS 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 9305200061 930520 BUSINESS BRIEF TRITON ENERGY CORP JUSTICE DEPARTMENT PROBING FOR POSSIBLE LAW VIOLATIONS THE JUSTICE DEPARTMENT IS CONDUCTING AN INQUIRY INTO WHETHER TRITON ENERGY CORP VIOLATED FEDERAL LAW AND IS PROBABLY FOCUSING ON THE FOREIGN CORRUPT PRACTICES ACT RELATED TO TRITON'S INDONESIAN OPERATIONS THE DALLAS COMPANY SAID TRITON SAID IT HAS BEEN ADVISED THAT THE INQUIRY IS SIMILAR TO ONE BY THE SECURITIES AND EXCHANGE COMMISSION AND WAS PROMPTED BY COMPLAINTS FROM ITS FORMER INDONESIAN PARTNER TRITON SAID IT IS COOPERATING WITH BOTH AGENCIES AND HAS VOLUNTARILY TURNED OVER THE SAME DOCUMENTS REQUESTED BY THE SEC TO THE JUSTICE DEPARTMENT A TRITON SPOKESMAN WOULDN'T DISCLOSE THE NATURE OF THE DOCUMENTS AND SAID HE DIDN'T KNOW THE SPECIFICS OF THE INQUIRY THE SPOKESMAN FOR TRITON AN OIL AND GAS EXPLORATION AND PRODUCTION COMPANY WOULDN'T COMMENT ON WHETHER THE COMPANY VIOLATED ANY LAWS WE AWAIT THE RESULTS OF THE INQUIRY HE SAID HE ALSO SAID TRITON BELIEVES BOTH INQUIRIES WILL BE RESOLVED IN A MANNER THAT WILL NOT HAVE A MATERIAL ADVERSE IMPACT ON ITS OPERATIONS OR FINANCIAL CONDITION 9305200060 930520 TECHNOLOGY BRIEF BARR LABORATORIES INC ANTIBIOTIC IS REINTRODUCED AFTER FDA IS GIVEN STUDIES BARR LABORATORIES INC SAID IT REINTRODUCED ITS ANTIBIOTIC ESP ONE OF 24 PRODUCTS SUSPENDED AS A RESULT OF A COURT ORDER LAST FEBRUARY BARR POMONA NY SAID IT HAD SUBMITTED ADDITIONAL VALIDATION STUDIES REQUESTED BY THE FOOD AND DRUG ADMINISTRATION TO ENSURE THAT IT IS FOLLOWING CONSISTENT DRUGMANUFACTURING PRACTICES ESP A GENERIC ANTIBIOTIC USED PRIMARILY TO TREAT MIDDLE EAR INFECTIONS IN CHILDREN REPRESENTS ABOUT 30 OF BARR'S ANNUAL SALES A FEDERAL JUDGE IN NEWARK NJ HAD SUSPENDED THE 24 PRODUCTS WHICH REPRESENT ABOUT 40 OF BARR'S ANNUAL SALES AND GAVE THE COMPANY ONE YEAR TO COMPLETE VALIDATION STUDIES OF ALL THE PRODUCTS THE COMPANY SAID IT IS PREPARING ADDITIONAL VALIDATION STUDIES ON THE REMAINING SUSPENDED PRODUCTS WHICH IT EXPECTS TO REINTRODUCE IN THE NEXT SEVERAL WEEKS 9305200059 930520 BUSINESS BRIEF HUTCHINSON TECHNOLOGY INC SPRING MAKER HAD A LOSS FOR FIRST PART OF QUARTER HUTCHINSON TECHNOLOGY INC HUTCHINSON MINN SAID IT HAD A LOSS IN THE FIRST SEVEN WEEKS OF THE FISCAL THIRD QUARTER ENDING JUNE 27 THOUGH IT DECLINED TO SPECIFY THE AMOUNT THE COMPANY WHICH MAKES PRECISE SPRINGS USED IN COMPUTER DISK DRIVES BLAMED THE LOSS ON A RAPID SHIFT IN CUSTOMER DEMAND TOWARD NEWER TYPES OF SPRINGS ITS CHIEF EXECUTIVE OFFICER JEFFREY W GREEN SAID THE COMPANY EXPECTS TO BECOME PROFITABLE AGAIN AS IT GAINS EXPERIENCE MAKING THE NEWER SUSPENSIONS HE ADDED THAT OVERALL DEMAND FOR THE PRODUCT HAS INCREASED SIGNIFICANTLY IN RECENT WEEKS IN THE 1992 THIRD QUARTER THE COMPANY REPORTED NET INCOME OF 12 MILLION OR 22 CENTS A SHARE ON SALES OF 381 MILLION IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY'S SHARES FELL 250 TO 22 9305200058 930520 BUSINESS BRIEF FUQUA INDUSTRIES INC COMPANY INTERMARK REACH LOANRESTRUCTURING ACCORD FUQUA INDUSTRIES INC SAID IT REACHED A LOANSTRUCTURING PACT WITH INTERMARK INC THAT WOULD ALLOW INTERMARK'S TRITON GROUP UNIT TO DESIGNATE TWO DIRECTORS TO AN EXPANDED NINEMEMBER FUQUA BOARD THE AGREEMENT IN PRINCIPLE WHICH CONCERNS A 317 MILLION LOAN TO TRITON FROM FUQUA IN 1991 WILL BE PART OF A PROPOSED CHAPTER 11 BANKRUPTCYLAW REORGANIZATION PLAN BY TRITON AND INTERMARK FUQUA SAID TRITON WHICH OWNS 262 OF FUQUA COULD DESIGNATE TWO DIRECTORS AS LONG AS ITS OWNERSHIP OF FUQUA STAYED ABOVE 20 UNDER THE PACT TRITON WOULD ALSO GET A REDUCED INTEREST RATE ON THE LOAN AND AN EXTENSION OF THE MATURITY DATE TO APRIL 1997 FROM NOVEMBER 1994 BUT FUQUA SAID IT WOULD KEEP ITS RIGHT OF FIRST REFUSAL ON TRITON'S FUQUA SHARES EARLIER THIS YEAR INTERMARK HAD UNSUCCESSFULLY ASKED A BANKRUPTCY COURT FOR PERMISSION TO MOUNT A PROXY FIGHT TO REPLACE FUQUA'S BOARD INTERMARK IS A HOLDING COMPANY BASED IN SAN DIEGO WHILE FUQUA BASED IN ATLANTA HAS INTERESTS IN SPORTING GOODS AND PHOTOFINISHING 9305200057 930520 BUSINESS BRIEF QVC NETWORK INC HOME SHOPPING FIRM'S NET NEARLY DOUBLED IN QUARTER QVC NETWORK INC REPORTED A NEARDOUBLING IN FISCAL FIRSTQUARTER EARNINGS PARTLY DUE TO AN ACCOUNTING CHANGE BUT MOSTLY BECAUSE OF WHAT IT TERMED THE REAL AND CONSISTENT GROWTH OF ELECTRONIC RETAILING CHAIRMAN BARRY DILLER CALLED THE RESULTS SATISFACTORY AND IN LINE WITH EXPECTATIONS QVC SHARES ROSE 250 TO 6250 IN NATIONAL OVERTHECOUNTER TRADING THE WEST CHESTER PA CONCERN WHICH OPERATES A SHOPPING CHANNEL ON CABLE TELEVISION REPORTED NET INCOME OF 216 MILLION OR 44 CENTS A SHARE FOR THE QUARTER ENDED APRIL 30 THAT INCLUDED 4 MILLION OR EIGHT CENTS A SHARE RESULTING FROM THE ADOPTION OF AN ACCOUNTING STANDARD DEALING WITH INCOME TAXES A YEAR EARLIER QVC'S NET INCOME WAS 111 MILLION OR 28 CENTS A SHARE REVENUE IN THE QUARTER ROSE TO 2732 MILLION FROM 2332 MILLION 9305200056 930520 FINANCING BUSINESS PENN CENTRAL CORP PENN CENTRAL CORP CINCINNATI ANNOUNCED A SECONDARY PUBLIC OFFERING OF 2308900 LIMITED PARTNERSHIP UNITS OF BUCKEYE PARTNERS LP OWNED BY PENN CENTRAL THE OFFERING PRICE IS 32625 PER UNIT THE OFFERING IS BEING UNDERWRITTEN BY LEHMAN BROTHERS NET PROCEEDS AFTER THE UNDERWRITING DISCOUNT WILL BE 30995 PER UNIT OR 716 MILLION IN AGGREGATE PENN CENTRAL'S PRETAX GAIN WILL BE ABOUT 185 MILLION THE SALE IS EXPECTED TO BE COMPLETED NEXT WEEK PENN CENTRAL IS A SPECIALTY PROPERTY AND CASUALTY INSURANCE CONCERN 9305200055 930520 INTERNATIONAL BRIEF SEGA ENTERPRISES LTD CONSOLIDATED PRETAX PROFIT JUMPED 60 IN FISCAL YEAR SEGA ENTERPRISES LTD THE JAPANESE VIDEOGAME MAKER REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT JUMPED 60 TO 5739 BILLION YEN 515 MILLION FROM 3599 BILLION YEN IN THE FISCAL YEAR ENDED MARCH 31 AS SALES CLIMBED 68 TO 41624 BILLION YEN FROM 24767 BILLION YEN SEGA NOTED STRONG SALES OF ARCADESTYLE VIDEO GAMES AND REVENUE FROM AMUSEMENTCENTER OPERATIONS IT SAID SALES OF HOMEVIDEO GAMES POSTED HEALTHY GAINS OVERSEAS WITH BUYERS IN THE US AND EUROPE FLOCKING TO THE 16BIT GENESIS MACHINE WHILE FIRSTGENERATION EIGHTBIT GAME SYSTEMS HELD ON TO A WARM MARKET IN EUROPE FOR THE CURRENT FISCAL YEAR THE COMPANY IS FORECASTING A 14 RISE IN CONSOLIDATED PRETAX PROFIT TO 655 BILLION YEN ON A 15 INCREASE IN SALES 9305200054 930520 TECHNOLOGY BRIEF ELI LILLY & CO UNIT IS GIVEN FDA APPROVAL TO SHIP EMS DEFIBRILLATORS ELI LILLY & CO SAID THE FOOD AND DRUG ADMINISTRATION HAS CLEARED ITS PHYSIOCONTROL CORP UNIT TO RESUME SHIPPING SOME HEARTDEFIBRILLATOR PRODUCTS THE MOVE COMES ALMOST A YEAR AFTER PHYSIOCONTROL THE NATION'S LARGEST MANUFACTURER OF DEFIBRILLATORS USED BY EMERGENCY MEDICAL PERSONNEL STOPPED PRODUCTION WHEN FDA INSPECTORS UNCOVERED SHORTCOMINGS IN THE REDMOND WASH UNIT'S MANUFACTURING PRACTICES AND IN ITS REPORTING TO THE GOVERNMENT THE COMPANY SAID YESTERDAY THAT IT WILL RESUME SHIPPING ITS LIFEPAK 10 DEFIBRILLATOR/MONITOR SHORTLY ALTHOUGH FULLVOLUME PRODUCTION ISN'T EXPECTED TO RESUME UNTIL THE THIRD QUARTER THE COMPANY ALSO SAID IT EXPECTS TO BEGIN SHIPPING ITS OTHER TWO LINES LIFEPAK 9 AND LIFEPAK 300 LATER THIS YEAR PHYSIOCONTROL'S REVENUE HAD BEEN 150 MILLION BEFORE THE SHUTDOWN THE COMPANY'S LIFEPAK PRODUCTS AREN'T RELATED TO THE IMPLANTABLE DEFIBRILLATORS MANUFACTURED BY ANOTHER LILLY UNIT 9305200053 930520 BUSINESS BRIEF PACIFIC TELESIS GROUP REGULATORS FINE PHONE UNIT ORDER 35 MILLION IN REFUNDS CALIFORNIA REGULATORS FINED PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT 15 MILLION AND ORDERED IT TO REFUND 35 MILLION TO TELEPHONE CUSTOMERS FOR IMPROPERLY IMPOSING LATE PAYMENT FEES AND DISCONNECTING CUSTOMERS THE CALIFORNIA PUBLIC UTILITIES COMMISSION TOLD PACIFIC BELL IT MUST TRY TO REACH CUSTOMERS WHO ARE OWED A REFUND FOR ERRONEOUS LATE PAYMENTS OR RECONNECTION CHARGES IF REFUNDS DON'T TOTAL 35 MILLION THE STATE WILL COLLECT THE DIFFERENCE AS FOR THE 15 MILLION FINE HALF WILL BE USED TO CUT RATES FOR ALL CUSTOMERS AND THE REMAINING 75 MILLION WILL BE USED TO DEFRAY CONNECTION CHARGES AND DEPOSITS FOR LOWINCOME CUSTOMERS PRESIDENT PHILIP QUIGLEY SAYS PACIFIC BELL PLANS TO ASK THE COMMISSION TO RECONSIDER ITS ORDER PACIFIC BELL HE SAID BELIEVES THE RECORD DOES NOT SUPPORT THE LEVEL OF PUNITIVE ACTION ORDERED HE SAID THAT PACIFIC BELL PROMPTLY CORRECTED THE PROBLEM AFTER IT REALIZED ITS SIGNIFICANCE EARLY IN 1991 AND HAS ALREADY CARRIED OUT A COMPREHENSIVE CUSTOMER NOTIFICATION PLAN AND REFUNDED MILLIONS OF DOLLARS 9305200052 930520 BUSINESS BRIEF CARGILL INC CONCERN WILL EXPAND MOVE INTO BIODEGRADABLE PLASTIC CARGILL INC SAID IT WILL SPEND 8 MILLION TO BUILD A FACILITY TO MAKE A BIODEGRADABLE PLASTIC MADE FROM AGRICULTURAL PRODUCTS WHEN IT BECOMES OPERATIVE IN FEBRUARY THE CLOSELY HELD FARM COMMODITIES PROCESSOR SAID THE PLANT NEAR MINNEAPOLIS WILL BE ABLE TO TURN OUT 10 MILLION POUNDS ANNUALLY OF LACTIC ACID POLYMER BUT MINNEAPOLISBASED CARGILL WHICH HAS BEEN OPERATING A SMALL PILOT PLANT EXPECTS INCREASED DEMAND FOR THE CLEAR PRODUCT FABRICATED BY FERMENTING SUGARS FROM PRODUCTS SUCH AS CORN GRAIN POTATOES AND SUGAR BEETS A SECOND PHASE OF THE PROJECT CALLS FOR CONSTRUCTION OF A MUCH LARGER PLANT WITH AN ANNUAL CAPACITY OF 250 MILLION POUNDS AS EARLY AS 1996 THE COMPANY SAID CARGILL SAID ITS PRODUCT OFFERS THE PERFORMANCE BENEFITS OF PETROCHEMICALBASED PLASTICS BUT DEGRADES LIKE PAPER IF COMPOSTED LIKE OTHER BIODEGRADABLE PLASTIC PRODUCTS UNDER DEVELOPMENT OR IN THE MARKETPLACE HOWEVER THE PLASTIC DOESN'T EASILY DEGRADE IF BURIED IN LANDFILLS 9305200051 930520 BUSINESS BRIEF JAMESWAY CORP WIDENED LOSS OF 8 MILLION POSTED FOR FISCAL 1ST PERIOD JAMESWAY CORP REPORTED A WIDER LOSS FOR ITS FISCAL FIRST QUARTER AS A RESULT OF LOWER SALES CAUSED BY UNUSUALLY POOR WEATHER AND AN INTERRUPTION OF MERCHANDISE SHIPMENTS THE DISCOUNT RETAILER BASED IN SECAUCUS NJ REPORTED A LOSS OF 8 MILLION OR 58 CENTS A SHARE FOR THE QUARTER ENDED MAY 1 COMPARED WITH A YEAREARLIER LOSS OF 34 MILLION OR 24 CENTS A SHARE THE YEARAGO PERIOD INCLUDED AN INCOMETAX BENEFIT OF 23 MILLION SALES WERE DOWN ALMOST 14 TO 1577 MILLION FROM 1825 MILLION WHILE SAMESTORE SALES OR SALES OF STORES OPEN AT LEAST A YEAR WERE OFF 6 JAMESWAY HAD 108 STORES IN OPERATION IN THE QUARTER COMPARED WITH 122 STORES A YEAR AGO JAMESWAY SAID MERCHANDISE FLOW WAS TEMPORARILY INTERRUPTED WHILE EXTENSIONS OF ITS CREDIT LINES WERE NEGOTIATED ALSO FEBRUARY AND MARCH WEATHER WAS UNUSUALLY BAD HOWEVER WITH BETTER SPRING WEATHER JAMESWAY NOTED MAY SAMESTORE SALES ARE RUNNING AHEAD OF LAST YEAR 9305200050 930520 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO IMAGE REPAIR TIES UP TOURISM EFFORTS IN FLORIDA AND CALIFORNIA NOT SO COLORADO FLORIDA POOLS PRIVATE AND PUBLIC MONEY TO FUND TELEVISION ADS FOR GERMAN AND BRITISH TV IN THE WAKE OF CRIMES REPORTED AGAINST FOREIGNERS IT HOPES TO FEND OFF A FEARED BOOKINGS DROP WHEN SUSPECTS IN A GERMAN TOURIST'S MURDER GO TO TRIAL BRINGING UNWANTED COVERAGE OF MIAMI THE ADS MIGHT NOT DO ANY GOOD BUT IT'S NOT GOING TO HURT EITHER A SPOKESMAN SAYS MEANWHILE LOS ANGELES OFFICIALS FLY TO OFFICES OF MEETING PLANNERS AND EUROPEAN OPERATORS TO EASE FEARS CAUSED BY LAST SUMMER'S RIOTS CALIFORNIA'S AD BUDGET SOARS TO AN ESTIMATED 29 MILLION IN 199293 FROM 215000 SAYS THE US TRAVEL DATA CENTER A RESEARCH FIRM COLORADO ON THE OTHER HAND SEES A BANNER YEAR IN 1993 DESPITE A CALL FOR A BOYCOTT OF THE STATE IN THE WAKE OF A CONSTITUTIONAL AMENDMENT THAT BARS LOCAL LAWS FROM OFFERING CIVIL PROTECTIONS TO GAYS SNOWS BROUGHT A RECORD SKI SEASON THIS SUMMER A NEW BASEBALL TEAM AND THE POPE'S AUGUST VISIT SHOULD DRAW MORE VISITORS THE NEW LURES ARE TIMELY THE STATE'S SUMMER AD BUDGET FALLS 21 AS A SALES TAX THAT FUNDS TOURISM EFFORTS ENDS BOWL BY CANDLELIGHT URGES ONE ALLEY OWNER AS THE SPORT SEEKS NEW PLAYERS JOHN LASPINA WHO OPERATES THREE NEW YORK AREA BOWLING CENTERS TRIES CANDLES AS WELL AS A ROCKANDROLL BOWL SMOKEFREE BOWLING AND OTHER INNOVATIONS TO ROLL OUT NEW ENTHUSIASTS RUNNING A BOWLING CENTER IS A PROMOTER'S GAME WE'VE TRIED EVERYTHING SHORT OF AN ILLEGAL ROADBLOCK SAYS MR LASPINA AND THE AMERICAN BOWLING CONGRESS GREENDALE WIS GOES AFTER ETHNIC GROUPS INCLUDING CUBAN MEXICAN FILIPINO AND JAPANESE BOWLERS BUT THE BOWLING CONGRESS FACES A TOUGH FRAME ITS MEMBERSHIP DROPPED 44 TO 27 MILLION IN 1992 FROM A PEAK OF 48 MILLION IN 1980 LAST YEAR THERE WERE ABOUT 7400 CERTIFIED BOWLING CENTERS DOWN FROM MORE THAN 10000 IN 1965 BOWLING OFFICIALS ADMIT THEIR SPORT SUFFERS FROM A BEER BELLY IMAGE A RAP THEY HOPE TO UNDO SOME DAY BY MAKING BOWLING AN OLYMPIC EVENT IN THE '50S BOWLING COST 70 CENTS A GAME THE PRICE IS NOW AS HIGH AS 3 OLIVE OIL ALERT A SUIT OVER FALSE HEALTH CLAIMS FOR THE EDIBLE OIL WINDS UP AN ALAMEDA CALIF WOMAN AND OLIVE OIL IMPORTER BERTOLLI USA INC REACHED A PROPOSED SETTLEMENT TO A CONSUMER CLASSACTION SUIT BERTOLLI THE NATION'S LARGEST OLIVE OIL IMPORTER PROMISES TO RUN ADS OFFERING A MONEYBACK GUARANTEE FOR ANY DISSATISFIED CUSTOMER AND A 50CENT CERTIFICATE THE COST OF THE CERTIFICATES ALONE MAY RUN TO 28 MILLION THE NEW JERSEY FIRM WITH 40 OF THE OLIVE OIL MARKET HAS SALES OF ABOUT 85 MILLION ACCORDING TO THE SUIT BROUGHT BY BEVERLY F BLATT THE SUIT FOLLOWED CHARGES MADE BY THE FEDERAL TRADE COMMISSION IN 1991 AGAINST BERTOLLI AND POMPEIAN INC ANOTHER IMPORTER OF MAKING FALSE AD CLAIMS ABOUT THE HEALTH BENEFITS SUCH AS LOWER CHOLESTEROL OR BLOOD SUGAR OF THEIR BRANDS OF OLIVE OIL BOTH FIRMS REACHED CONSENT AGREEMENTS WITH THE FTC THAT BAR THEM FROM MAKING THESE CLAIMS THE SUIT SEEKS PAYMENT FOR ANYONE WHO BOUGHT BERTOLLI'S PRODUCTS BECAUSE OF THE ADS A SETTLEMENT HEARING WILL BE HELD IN ALAMEDA ON JULY 26 THE BRIDAL REGISTRY GETS SOMETHING NEW HANDHELD SCANNERS DAYTON HUDSON CORP'S STORES USE BARCODE SCANNERS TO LIST A COUPLE'S CHOICES AND THE ITEMS' PRICES TOUCHSCREEN COMPUTERS LET GUESTS CALL UP THE LIST AND POINTOFSALE TERMINALS LOG BRIDAL PURCHASES FOR INSTANT UPDATES REFRIGERATOR MAGNETS ATTRACT ATTENTION IN FRANCE AS THE LAPELPIN FAD FADES DANONE A UNIT OF BSN SA BEGAN GIVING THEM AWAY WITH YOGURT A YEAR AGO AND THE PRACTICE HAS CAUGHT ON AMONG FOOD FIRMS PIZZA FOR INSTANCE IS DELIVERED WITH MAGNETS TOUTING THE SHOPS' PHONE NUMBERS FOOD INDUSTRY MERGERS JUMPED 28 TO 468 LAST YEAR THE FIRST RISE SINCE '88 WHEN THE MERGERS TOTALED 652 SAYS THE FOOD INSTITUTE RESTAURANTS AND PROCESSORS WERE AMONG THE MORE ACTIVE LAST YEAR BUT MERGERS FELL SHARPLY AMONG FOOD SERVICE VENDORS AND CONVENIENCE STORES UTILITIES UNITE TO PUSH CUSTOMER USE OF PREAUTHORIZED MONTHLY BILL PAYMENTS THIS PAYMENT OPTION GAINS MORE ADHERENTS AMONG CUSTOMERS WHEN PROMOTED JOINTLY BY COMPANIES UTILITIES SAY IN NORTHERN OHIO 13 GAS ELECTRIC PHONE AND WATER UTILITIES WORK WITH BANKS AND EACH OTHER TO TOUT THE SERVICE BANKS LIST THE PARTICIPANTS IN MAILINGS AND THE UTILITIES' BROCHURES NAME EACH OTHER A COOPERATIVE EFFORT INCREASES THE CREDIBILITY OF THE SERVICE FOR CUSTOMERS SAYS CONSULTANT GEORGE WHITE PREAUTHORIZED PAYMENTS CUT UTILITIES' PROCESSING COSTS COLUMBIA GAS OHIO A MEMBER OF THE OHIO NETWORK SAYS IT COSTS FIVE CENTS TO PROCESS A PREAUTHORIZED PAYMENT VS 20 CENTS FOR A MAILED CHECK ABOUT 95 OF ITS TOLEDO CUSTOMERS USE THE SERVICE MR WHITE SAYS THE AVERAGE RATE FOR UTILITIES IS 4 IN HAWAII WHERE JOINT PROMOTIONS BEGAN IN 1985 THE RATE NEARS 20 SAYS THE HAWAII EFT ASSOCIATION CUSTOMERS ARE SLOW TO SIGN ON BECAUSE MOST LIKE THE SECURITY OF WRITING A CHECK SAYS DANIEL HALL OF BROOKLYN UNION GAS BRIEFS PCMCIA OR PERSONAL COMPUTER MEMORY CARD INTERNATIONAL ASSOCIATION SETS STANDARDS FOR DEVICES TO PLUG INTO PORTABLE COMPUTERS BUT WAGS SAY THE MOUTHFUL REALLY MEANS PEOPLE CAN'T MEMORIZE COMPUTER INDUSTRY ABBREVIATIONS A MELLON BANK BROCHURE SHOWS A BABY ON THE FLOOR AND THE CAPTION THE LAST TIME HOME EQUITY RATES WERE THIS LOW YOU WERE TOO 9305200049 930520 REVIEW & OUTLOOK EDITORIAL THE POW DRAMA POWS AND RECOGNITION THESE LAST FEW DAYS WE'VE PUBLISHED FASCINATING ARTICLES ON THE ISSUE OF WHETHER THE VIETNAMESE HELD BACK AMERICANS AFTER THE RETURN OF 591 PRISONERS IN 1973 OUR CAIT MURPHY IN HONG KONG CAREFULLY SIFTED THE PUBLIC EVIDENCE TUESDAY AND GEORGE A CARVER JR AT THE TIME PROBABLY THE LEADING INTELLIGENCE EXPERT ON VIETNAM ELABORATES ALONGSIDE ON THE SUSPICIONS HE DEVELOPED AS THE WAR ENDED SEE RELATED ARTICLE VIETNAM THE UNFINISHED BUSINESS WSJ MAY 20 1993 WHAT CONCLUSIONS ARE TO BE DRAWN ABOUT THE FACTS AND ABOUT OUR FUTURE RELATIONS WITH VIETNAM WE AND WE SUSPECT MOST OTHER OBSERVERS HAD RECENTLY BEEN IN THE PROCESS OF LAYING ASIDE THE PRISONER ISSUE AS IF NOT EXACTLY SETTLED AT LEAST SUBSIDING MUCH OF THE EVIDENCE OFFERED THAT PRISONERS REMAINED HAD PROVED MISLEADING AND FRAUDULENT AND THE MISSINGINACTION ISSUE HAD STARTED TO RESEMBLE A CON JOB ON SADDENED RELATIVES THE SENATE COMMITTEE UNDER JOHN KERRY HELD EXTENSIVE HEARINGS AND ARRIVED AT WHAT SEEMED BALANCED CONCLUSIONS SUGGESTING THAT IT'S UNLIKELY THAT PRISONERS REMAIN ALIVE TODAY BUT NOT SO UNLIKELY THAT SOME WERE HELD BACK IN 1973 AND THAT AMERICAN OFFICIALS AT THE TIME DIDN'T KNOW OF REMAINING PRISONERS BUT GIVEN THE TEMPER OF THE TIMES DIDN'T ESPECIALLY WANT TO KNOW AND ON THESE ASSUMPTIONS AND WITH THE END OF THE COLD WAR IT SEEMED REASONABLE TO THINK SERIOUSLY ABOUT NORMALIZING DIPLOMATIC RELATIONS WITH VIETNAM AND LIFTING THE LONGSTANDING TRADE EMBARGO THE UNDERLYING ASSUMPTION ABOUT PRISONERS THOUGH WAS OVERTURNED WHEN HARVARD RESEARCHER STEPHEN MORRIS DISCOVERED A DOCUMENT IN THE SOVIET ARCHIVES REPORTING THAT IN 1972 THE VIETNAMESE SAID THEY HELD 1205 AMERICAN PRISONERS AFTER A RUSH OF DISBELIEF NEARLY EVERYONE SEEMS TO AGREE THIS WAS AN AUTHENTIC SOVIET DOCUMENT THE REPORTED VIETNAMESE AUTHOR HAS DENIED HE WROTE ANY SUCH VIETNAMESE DOCUMENT AND WHILE THERE MAY BE NO REASON TO DISBELIEVE HIM GIVEN THE RECORD THERE IS ALSO NO REASON TO BELIEVE HIM THE VIETNAMESE DENIAL INCLUDED AN ACCOUNT OF HIS CAREER THAT STRIKES MR CARVER AS FISHY MR CARVER'S ACCOUNT ALSO TENDS TO UNDERMINE THE MOST POWERFUL PIECE OF EVIDENCE THAT ALL PRISONERS RETURNED THE FACT THAT NONE WHO RETURNED KNEW OF ANYONE WHO DIDN'T EVEN AT THE TIME HE REPORTS HE SUSPECTED THAT PRISONERS WERE HELD IN THREE DIFFERENT GROUPS CAREFULLY SEPARATED FROM EACH OTHER HE BELIEVES THE MORRIS DOCUMENT PROVIDES FURTHER EVIDENCE OF THIS SUSPICION AND THERE IS ALSO AN EXTANT DEFECTOR'S ACCOUNT THAT THE VIETNAMESE HAD DISCUSSED HOLDING BACK SOME 700 PRISONERS AS BARGAINING CHIPS THE FOCUS OF THE KERRY COMMITTEE AND MOST OTHER INVESTIGATIONS HAD BEEN ON WHETHER AMERICANS REMAIN ALIVE TO BE RECOVERED NOT ON HOW MANY WERE HELD IN 1972 OR 1973 WHAT IS NOW AT ISSUE IN THE MORRISDOCUMENT ROUND OF SUSPICION IS NOT LIVING PRISONERS BUT THE KATYN MASSACRE SCENARIO AS STALIN SLAUGHTERED POLISH PRISONERS IN THE KATYN FOREST IT RUNS THE VIETNAMESE EXECUTED THEIR REMAINING PRISONERS AFTER THE FALL OF SAIGON IN 1975 MR MORRIS MR CARVER AND FORMER NATIONAL SECURITY ADVISER ZBIGNIEW BRZEZINSKI TAKE THIS POSSIBILITY AS TOO SERIOUS TO DISMISS THESE ARE NEITHER CON ARTISTS NOR BEREAVED RELATIVES THE SOVIET DOCUMENT THAT MR MORRIS UNEARTHED CONTAINS OBVIOUS FACTUAL INACCURACIES THOUGH HE HAS SUGGESTED PLAUSIBLE EXPLANATIONS THE NUMBER OF 700 REMAINING PRISONERS SEEMS HARD IF NOT TOTALLY IMPOSSIBLE TO BELIEVE IN THE LIGHT OF THE DEFENSE DEPARTMENT'S ACCOUNTING OF UNEXPLAINED CASES AND THE NUMBER OF UNEXPLAINED MISSING IS ITSELF LOW COMPARED WITH THE KOREAN WAR OR WORLD WAR II BUT IN ALL THE NEW SUSPICIONS HAVE ENOUGH BASIS TO JUSTIFY WHAT MR CARVER SUGGESTS A SERIOUS NEW INVESTIGATION STRESSING RUSSIAN COOPERATION AS RICHARD NIXON THE ANTICOMMUNIST WENT TO CHINA BILL CLINTON THE WAR PROTESTER SHOULD CHARTER THIS STUDY WHAT THE POW ISSUE SHOULD MEAN ON POLICY TOWARD VIETNAM SHOULD PERHAPS BE DISCUSSED IN ANOTHER VENUE GIVEN PRESIDENT CLINTON'S PROTEST RECORD AND ALL HIS OTHER POLITICAL DIFFICULTIES WITH THE RADICAL LEFT AGENDA ABOUT THE LAST THING HE NEEDS IS TO RUSH INTO NORMALIZATION WHEN EVIDENCE OF THE KATYN SCENARIO COULD POP UP THERE ARE PARTICULAR DIFFICULTIES IN TERMS OF DOMESTIC POLITICS AND INTERNATIONAL PRECEDENTS TO A NORMALIZATION IN WHICH THE VIETNAMESE ARE LYING TO THE US GOVERNMENT AND THE US GOVERNMENT IS LYING TO THE AMERICAN PEOPLE WITH THAT SAID THERE IS A PRESSING NEED TO OPEN THE ISSUE OF WHAT KIND OF RECOGNITION AND TRADE POLICIES AND WHAT KIND OF SANCTIONS ARE APPROPRIATE IN A POSTCOLD WAR ORDER THE BIG LESSON OF THE FALL OF THE SOVIET UNION IS THAT IN A WORLD OF INSTANT COMMUNICATIONS CONTACT IS LIKELY TO ERODE TOTALITARIAN REGIMES THERE IS MUCH TO BE SAID FOR RECOGNIZING AND TRADING WITH EVERYONE WHETHER VIETNAM TAIWAN CUBA OR THE TURKISH REPUBLIC OF NORTHERN CYPRUS WITH REGARD TO MOSTFAVOREDNATION STATUS FOR CHINA THIS CASE SEEMS TO US OVERWHELMING WHAT WE OUGHT TO BE WORKING AT IS A BETTER POLICY OF SANCTIONS WHICH WILL INVOLVE OVERTURNING MUCH DIPLOMATIC PROTOCOL FROM THE COLD WAR AND BEFORE RECOGNITION NEED NOT MEAN THAT WE ROLL OUT POMP AND CIRCUMSTANCE FOR DIGNITARIES FROM VIETNAM OR SERBIA IT DOES NOT MEAN SENDING HIGH OFFICIALS TO EXCHANGE TOASTS IN THE WAKE OF TIANANMEN SQUARE AND MOSTFAVOREDNATION ON TRADE DOES NOT MEAN THAT WE CANNOT OPPOSE GOVERNMENTTOGOVERNMENT AID THROUGH THE IMF WORLD BANK OR ASIAN DEVELOPMENT BANK AS MUCH CONSTERNATION AS SUCH A POLICY WOULD RAISE IN THESE AUGUST BODIES IT IS SOMETHING A SUPERPOWER OUGHT TO BE ABLE TO DO IN TRADE DISPUTES WITH FRANCE OR JAPAN SIMILARLY WE NEED TO DEVISE SOME SANCTIONS THAT DO NOT FORCE AMERICAN CONSUMERS TO PAY MORE FOR WINE OR COMPUTER CHIPS EVEN IF THIS INVOLVES VIOLATING THE ANCIENT AND OUTMODED TABOO ABOUT INTERFERING IN DOMESTIC POLITICS ABROAD VIETNAM HOWEVER SEEMS AN INAUSPICIOUS PLACE TO START SUCH A NEW POLICY IT IS STILL A HEAVY BURDEN ON THE AMERICAN PSYCHE ESPECIALLY GIVEN THE DOMESTIC DIVISIONS WHAT PRECLUDED A MORE FORCEFUL POLICY ON ACCOUNTING FOR PRISONERS AFTER ALL WAS NOT THE MISTAKES OF RICHARD NIXON OR HENRY KISSINGER BUT THE PASSIONS OF THE ANTIWAR LEGIONS IN WHICH BILL CLINTON MARCHED THE VIETNAM WAR'S CEASEFIRE TERMS INCLUDED RELEASE OF AND ACCOUNTING FOR PRISONERS BUT IN HIS SENATE TESTIMONY MR KISSINGER WAS ABLE TO POINT TO ANTIWAR EDITORIALS AND EVENTUALLY TO CONGRESSIONAL LEGISLATION AGAINST USING AMERICAN POWER TO ENFORCE THE AGREEMENT MANY OF OUR FRIENDS ESPECIALLY IN ASIA HAVE TROUBLE UNDERSTANDING THIS DOMESTIC BURDEN THE WENCH IS DEAD AND THIS IS ANOTHER COUNTRY THEY TELL US THESE SAME PEOPLE SEEM TO HAVE LESS TROUBLE UNDERSTANDING THE ISSUE OF COMFORT WOMEN IN KOREA OR BASING THE WHOLE RELATIONSHIP BETWEEN JAPAN AND RUSSIA ON FOUR ISLAND RELICS OF WORLD WAR II THE AMERICAN NATION IS NOT BASED ON RACIAL SOLIDARITY REMEMBER BUT ON IDEALS ABOUT TRUST BETWEEN A PEOPLE AND ITS GOVERNMENT AT THIS HISTORICAL MOMENT THIS TRUST ALREADY SHAKY DOES NOT NEED SURPRISES ABOUT THE FATE OF AMERICAN SERVICEMEN FINALLY THE POW ISSUE CONCERNS NOT ONLY VIETNAMESE BEHAVIOR IN 1973 BUT VIETNAMESE BEHAVIOR TODAY WHAT MR CARVER'S COMMISSION NEEDS TO STUDY IS NOT ONLY WHAT THEY DID THEN BUT WHETHER THEY ARE LYING TO US NOW TWO DECADES LATER THE ARGUMENTS FOR MORE OPEN RECOGNITION AND MORE OPEN TRADE ARE QUITE POWERFUL IN THE POSTCOLDWAR ERA OF INSTANT COMMUNICATION BUT THEY ARE NOT LIKELY TO BE SUSTAINED IF THEY ARE LAUNCHED IN A CLOUD OF DECEIT 9305200048 930520 STOCK MANIPULATOR IN JAPAN FREED REGULATORS ASSAILED TOKYO AP A JUDGE ALLOWED A CONVICTED STOCK MANIPULATOR TO GO FREE WITH A SUSPENDED SENTENCE WEDNESDAY BUT CRITICIZED MARKET REGULATORS FOR NOT STOPPING HIS MOVES TO ARTIFICIALLY BOOST PRICES THE CASE OF MITSUHIRO KOTANI WHOSE SCHEMES HAVE BEEN LINKED WITH POLITICIANS SENIOR BUSINESSMEN AND ORGANIZED CRIME WAS AMONG SEVERAL RECENT SCANDALS THAT HAVE PUT A DAMPER ON THE TOKYO STOCK MARKET THE BENCHMARK 225ISSUE NIKKEI STOCK AVERAGE HAS PLUNGED MORE THAN 47 FROM ITS PEAK OF 3891587 POINTS AT THE END OF 1989 TO ABOUT 20000 THE JUDGE SENTENCED MR KOTANI 56 YEARS OLD TO 18 MONTHS IN PRISON BUT SUSPENDED THE SENTENCE FOR THREE YEARS MR KOTANI WON'T BE JAILED IF HE MAINTAINS A CLEAN RECORD DURING THAT TIME HE IS BEING TRIED SEPARATELY HOWEVER IN THE ALLEGED SWINDLING OF 270 MILLION FROM JANOME SEWING MACHINE CO MR KOTANI ENGAGED IN THE SCHEME IN AN EFFORT TO REPAY DEBTS TOTALING 261 MILLION TO TWO CORPORATIONS 9305200047 930520 BUSINESS BRIEF ZURN INDUSTRIES INC STOCK PRICE DECLINES 81 ON EARNINGS DISAPPOINTMENT ZURN INDUSTRIES INC'S STOCK FELL 81 OR 3125 TO 3525 YESTERDAY ON THE NEW YORK STOCK EXCHANGE FOLLOWING THE ERIE PA COMPANY'S REPORT OF LOWERTHANEXPECTED EARNINGS LATE TUESDAY FOR THE FISCAL FOURTH QUARTER ENDED MARCH 31 THE CONCERN WHICH MAKES AND DESIGNS POWER GENERATION AIR POLLUTION EQUIPMENT AND CONSTRUCTION PRODUCTS EARNED 88 MILLION OR 70 CENTS A SHARE ON SALES OF 158 MILLION BUT THOSE RESULTS INCLUDED A PRETAX GAIN OF 46 MILLION FROM THE SALE OF BUSINESSES WITHOUT THE GAIN ZURN EARNED 59 MILLION AFTER TAXES OR 47 CENTS A SHARE WELL BELOW ANALYSTS' ESTIMATES OF 68 CENTS A SHARE IN THE YEAREARLIER QUARTER ZURN HAD A LOSS OF 74 MILLION OR 58 CENTS A SHARE AFTER A RESTRUCTURING CHARGE AND PROVISIONS FOR RECEIVABLES ZURN HAS NOT BEEN ABLE TO COLLECT FROM CASHSTRAPPED CUSTOMERS ZURN SAID IT HAD PLANNED FOR HIGHER EARNINGS BUT SALES AT ITS LYNX GOLF BUSINESS WERE SUBSTANTIALLY BELOW EXPECTATIONS PARTLY BECAUSE OF DELAYS INTRODUCING A NEW LINE OF METAL WOODS THE HIGHTECHNOLOGY GOLF CLUBS ARE AN OFFSHOOT OF ZURN'S PRECISION MANUFACTURING METHOD 9305200046 930520 BUSINESS BRIEF DOLE FOOD CO FIRM HAS SEVERAL OFFERS OUT TO BUY OTHER COMPANIES DOLE FOOD CO HAS SEVERAL OFFERS OUT FOR ACQUISITIONS OF OTHER COMPANIES AND PLANS TO USE SUCH EXPANSION TO REDUCE THE PERCENTAGE OF ITS BUSINESS NOW IN THE AILING WORLDWIDE BANANA INDUSTRY CHAIRMAN DAVID H MURDOCK SAID THE BILLIONAIRE INVESTOR WHO HAS A CONTROLLING 23 STAKE IN DOLE WOULDN'T DETAIL THE SIZE OF THE TARGETED COMPANIES IN HIS REMARKS AT THE COMPANY'S ANNUAL MEETING IN LOS ANGELES NOR WOULD HE SAY WHAT SPECIFIC MARKETS THEY REPRESENT EXCEPT TO NOTE THAT ANY ACQUISITIONS WOULD ALL BE IN CURRENT AREAS OF STRENGTH FOR DOLE DOLE BASED IN WESTLAKE VILLAGE CALIF IS AMONG THE NATION'S LARGEST PRODUCERS OF FRESH FRUITS AND VEGETABLES AND ALSO PACKAGES FOODS AND HAS OTHER INTERESTS IN REAL ESTATE AND RESORTS BUT IT HAS BEEN PLAGUED RECENTLY FROM ITS DEPENDENCE ON BANANAS EVEN AS IT HAS REDUCED THE PERCENTAGE OF REVENUES FROM THAT FRUIT TO 30 FROM AROUND 50 SEVERAL YEARS AGO MR MURDOCK ALSO SAID THE COMPANY HAS SLASHED 133 MILLION FROM 1993 COSTS UNDER A BELTTIGHTENING PLAN THAT HAD ORIGINALLY AIMED FOR 100 MILLION IN REDUCTIONS THE COMPANY HAS DOUBLED ITS GOAL TO 200 MILLION MR MURDOCK SAID 9305200045 930520 REVIEW & OUTLOOK EDITORIAL ASIDES PRICE OF LIBERTY AND WATER SAN FRANCISCO LIBERALS ARE USUALLY THE FIRST TO SQUAWK ABOUT RURAL WESTERN INTERESTS GETTING RESOURCE SUBSIDIES FROM THE TAXPAYER BUT THE TABLES WERE TURNED LAST WEEK THE SAN FRANCISCO CHRONICLE REPORTED WHEN HOUSE REPUBLICANS TRIED TO STOP A 20 TO 1 RETURN THAT THE CITY GETS ON THE PALTRY FEES IT PAYS FOR WATER FROM THE FEDERAL HETCH HETCHY RESERVOIR REP NANCY PELOSI GOT ON THE HORN TO NATURALRESOURCES PANEL CHAIRMAN GEORGE MILLER ALSO A DEMOCRAT FROM THE BAY AREA TO BURY THE MEASURE WE WILL HAVE TO BE EVER VIGILANT SHE SAID 9305200044 930520 BUSINESS BRIEF AUTOTOTE CORP STOCK JUMPS 13 ON PACT TO BUY A LOTTERY BUSINESS AUTOTOTE CORP'S STOCK JUMPED 13 AFTER THE COMPANY SAID IT AGREED TO BUY THE LOTTERY OPERATIONS OF CHICAGOBASED GENERAL INSTRUMENT CORP AUTOTOTE A NEWARK DEL MAKER OF BETTING EQUIPMENT DIDN'T DISCLOSE FINANCIAL TERMS OF THE ACQUISITION WHICH IS SUBJECT TO REGULATORY APPROVAL AUTOTOTE'S SHARES LEAPED AFTER THE ACQUISITION WAS ANNOUNCED CLIMBING 525 TO CLOSE AT 4575 IN LATE OVERTHECOUNTER TRADING AUTOTOTE ALSO REPORTED NET INCOME FOR THE FISCAL SECOND QUARTER OF 13 MILLION OR 16 CENTS A SHARE COMPARED WITH YEARAGO PROFIT OF 29 MILLION OR 56 CENTS A SHARE ON FEWER SHARES OUTSTANDING LAST YEAR'S RESULTS HOWEVER INCLUDED A PRETAX GAIN OF 3 MILLION OR 50 CENTS A SHARE FROM AN INSURANCE CLAIM REVENUE FOR THE QUARTER WHICH ENDED APRIL 30 ROSE 51 TO 154 MILLION FROM 102 MILLION FOR THE FIRST SIX MONTHS AUTOTOTE POSTED NET OF 19 MILLION OR 25 CENTS A SHARE YEARAGO PROFIT WAS 27 MILLION OR 54 CENTS A SHARE ON FEWER SHARES OUTSTANDING AND A GAIN OF 54 CENTS A SHARE FROM AN INSURANCE CLAIM REVENUE ROSE 41 TO 274 MILLION FROM 194 MILLION 9305200043 930520 INDUSTRY FOCUS US REALESTATE INDUSTRY SEEKS GREENER FOREIGN FIELDS OVERSEAS BOOM HELPS OFFSET LOST REVENUES IN OVERBUILT HOMEFRONT BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS THE US REALESTATE INDUSTRY STARVED FOR NEW BUSINESS IS GOING GLOBAL AT A REALESTATE GATHERING HERE LAST WEEKEND FOR INSTANCE THE MODERATOR OF A PANEL ENTITLED EXPORT YOUR SKILLS ASKED EXECUTIVES FOR A SHOW OF HANDS ON WHO HAD EXPANDED INTERNATIONALLY WHEN ONLY A FEW HANDS WENT UP HE THEN ASKED HOW MANY WERE CONTEMPLATING A MOVE INTO ANOTHER COUNTRY NEARLY ALL THE 40 BUSINESSPEOPLE PRESENT RAISED THEIR HANDS THE RESPONSE AT THIS CONFERENCE OF THE URBAN LAND INSTITUTE A REALESTATE THINK TANK MIRRORS THE INDUSTRYWIDE INTEREST IN OPERATING ABROAD PREVIOUSLY CONTENT TO FOCUS ON THE ONCEBUSTLING HOMEFRONT THE INDUSTRY IS BEING FORCED TO BROADEN ITS HORIZON TO OFFSET LOST REVENUES FROM THE DISASTROUSLY OVERBUILT US COMMERCIAL MARKET AND TO SERVE THE PROPERTY NEEDS OF MULTINATIONAL AMERICAN COMPANIES WHO EXPANDED YEARS AGO WORLDWIDE OUR MARKET IS JUST GONE SAYS JACK A SHAFFER MANAGING DIRECTOR OF SONNENBLICKGOLDMAN CO REALESTATE INVESTMENT BANKERS IN NEW YORK THEY US REALESTATE FIRMS ARE TRYING TO FIND A WAY TO BRING THEIR EXPERTISE TO SOMEONE WHO WILL NEED IT SEEING THE OPPORTUNITY DEVELOPERS BROKERAGE FIRMS ARCHITECTS AND CONSULTANTS ARE ALL RUSHING INTO PLACES LIKE MEXICO CITY AND LONDON THE WAY THEY ONCE DASHED TO OLD BOOMTOWNS LIKE HOUSTON AND LOS ANGELES MEXICO WITH ITS CLOSE PROXIMITY TO THE US AND ITS RESURGING ECONOMY IS SO POPULAR AMONG AMERICANS THAT A RECENT MEETING IN MEXICO CITY ON DEVELOPMENT OPPORTUNITIES THERE BALLOONED TO SOME 300 ATTENDEES FROM 80 ANTICIPATED SOME COMPANIES ARE ENJOYING SUCCESS GENSLER & ASSOCIATES/ARCHITECTS SAN FRANCISCO SAYS 10 OF ITS 78 MILLION IN ANNUAL REVENUE NOW COMES FROM EUROPEAN AND ASIAN BUSINESS AND THAT ITS GOAL IS TO DERIVE 25 OF TOTAL REVENUES FROM INTERNATIONAL WORK BY THE END OF THIS DECADE BY REDUCING OUR EXPOSURE TO LOCAL ECONOMIC DOWNTURNS GEOGRAPHICAL DIVERSIFICATION WILL KEEP OUR ORGANIZATION STRONG AND BUSY DURING THESE TURBULENT ECONOMIC TIMES M ARTHUR GENSLER JR PRESIDENT SAID IN AN ANNUAL REPORT EDAW INC A BIG PROPERTY CONSULTING FIRM IN SAN FRANCISCO SAYS 30 OF ITS WORK NOW COMES FROM ITS RECENTLY OPENED OFFICES IN LONDON AND AUSTRALIA VS LESS THAN 10 IN INTERNATIONAL BUSINESS A DECADE AGO CHRISTOPHER DEGENHARDT CHAIRMAN SAYS ALL OF HIS COMPANY'S REVENUE GROWTH IS FROM INTERNATIONAL JOBS AND SHOPPING CENTER DEVELOPER MELVIN SIMON IS ABLE TO KEEP ABOUT AS BUSY AS HE WAS IN THE 1980S HEYDAY OF MALL DEVELOPMENT AFTER BRANCHING INTO MEXICO MR SIMON'S INDIANAPOLISBASED SIMON DEVELOPMENT CO IS BUILDING THREE REGIONAL MALLS IN MEXICO CITY AND ANOTHER IN GUADALAJARA IT HAS FOUR UNDER DEVELOPMENT IN THE US IF WE WERE AS BUSY IN THE US AS WE WERE IN 1985 WHEN WE WERE BUILDING FIVE TO SIX REGIONAL CENTERS A YEAR WE WOULD NOT HAVE HAD TIME TO GO INTO MEXICO SAYS MICHAEL P MCCARTY SENIOR VICE PRESIDENT FOR THE DEVELOPER WITH BUILDING OPPORTUNITIES BOOMING THROUGHOUT THE DEVELOPING WORLD REALESTATE ANALYSTS SAY THERE WILL BE NO TURNING BACK FROM THE GLOBALIZATION TREND IT'S THE EXPORTATION OF THE AMERICAN WAY OF DOING BUSINESS SAYS MICHAEL L EVANS NATIONAL DIRECTOR OF REAL ESTATE ADVISORY SERVICES FOR ERNST & YOUNG ACCOUNTANTS AND CONSULTANTS ADDS SANFORD R GOODKIN AN INDUSTRY CONSULTANT IN SAN DIEGO I THINK TRUE GLOBALIZATION OF THE INDUSTRY IS A FACT AND WHAT YOU'RE LOOKING AT IS THE LEADING EDGE AMERICANS ARE PRIZED FOR WHAT MANY FOREIGNERS CONSIDER THEIR SUPERIOR DESIGN AND ARCHITECTURAL ABILITY AND AS SUCH THEY ARE WINNING CONTRACTS OVER LOCAL COMPETITION TISHMAN SPEYER PROPERTIES NEW YORK FOR EXAMPLE BEAT OUT GERMAN COMPETITORS TO CONSTRUCT A 70STORY SKYSCRAPER IN FRANKFURT THAT NOW STANDS AS EUROPE'S TALLEST BUILDING AND SOME THINK AMONG ITS BEST DESIGNED TRAMMELL CROW CO DALLAS HAS ALSO WON BUILDING CONTRACTS IN EUROPE AND MEXICO IT'S NOT OUR MONEY THEY WANT IT'S THE KNOWHOW SAYS JAMES D KLINGBEIL A SAN FRANCISCO BUILDER AND PRESIDENT OF THE URBAN LAND INSTITUTE IN MANY OTHER CASES US REALESTATE COMPANIES ARE GOING ABROAD TO SERVICE THE NEEDS OF THEIR GLOBAL CUSTOMERS OVER THE PAST THREE YEARS BROKERAGE AND SERVICES FIRMS LIKE CB COMMERCIAL REAL ESTATE GROUP INC LOS ANGELES CUSHMAN & WAKEFIELD INC NEW YORK LA SALLE PARTNERS CHICAGO AND BINSWANGER PHILADELPHIA HAVE EXPANDED INTO MEXICO AND EUROPE TO MEET THE NEEDS OF CLIENTS OPENING NEW FACTORIES OR OFFICE BUILDINGS THERE CUSHMAN & WAKEFIELD HAS ALSO EXPANDED TO CANADA AND MAY SOON FOLLOW CLIENTS INTO BRAZIL CHILE HONG KONG AND SINGAPORE IT'S LIKE WHERE HAVE WE BEEN SAYS WILLIAM A BUGG JR EXECUTIVE MANAGING DIRECTOR OF CUSHMAN & WAKEFIELD'S INTERNATIONAL OPERATIONS WE WERE NOT LISTENING TO OUR CLIENTS WHEN THEY EXPANDED ABROAD YEARS AGO WE WERE SORT OF SMUG IN OUR OWN BACKYARD AMONG THE PROBLEMS MULTINATIONAL CORPORATIONS HAVE BEEN FACING ARE OVERLY STRINGENT LEASES IN BRITAIN FOR INSTANCE TENANTS HAVE HAD TO COMMIT TO A 25YEAR CONTRACT WITH RENT INCREASES EVERY FIVE YEARS AMERICAN COMPANIES SEEKING SHORT LEASES AND FLEXIBILITY WERE ABLE TO GAIN RENT CONCESSIONS AS THE LONDON PROPERTY MARKET TANKED AND US BROKERS RAN NEGOTIATING INTERFERENCE IN MEXICO CITY AMERICAN BROKERS ARE ALSO TRYING TO GAIN USSTYLE LEASES IN OFFICES THAT TENANTS HAVE HAD TO BUY OUTRIGHT THERE'S A VACUUM OF PEOPLE IN OTHER COUNTRIES WHO REALLY UNDERSTAND THE AMERICAN APPROACH TO REAL ESTATE SAYS STUART L SCOTT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LA SALLE SO FAR THE OVERALL NUMBER OF AMERICAN COMPANIES DOING BUSINESS INTERNATIONALLY IS STILL QUITE SMALL ONE OF THE BIG HINDRANCES IS THAT IT IS VERY EXPENSIVE TO OPEN SHOP IN ANOTHER COUNTRY WITH LOSSES PROBABLE FOR AT LEAST THE FIRST YEAR OR TWO OF OPERATION LA SALLE FOR ONE FIGURES IT HAS LOST AS MUCH AS 6 MILLION IN GETTING ITS LONDON BRANCH SET UP OVER THE PAST TWO YEARS SINCE A GOOD MANY US DEVELOPERS HAVE BEEN HAMMERED IN THE AMERICAN REALESTATE CRASH MR SCOTT SAYS A LOT OF GUYS DO NOT HAVE THE STOMACH TO LOSE MONEY THE WAY WE DID WORKING IN OTHER COUNTRIES ALSO CARRIES THE RISK OF POLITICAL INSTABILITY THAT CAN TORPEDO A PROJECT TISHMAN SPEYER FOR EXAMPLE HAD THE BAD LUCK TO PLAN A 150 MILLION HOUSING DEVELOPMENT IN BEIJING JUST BEFORE THE COMMUNIST REGIME CRACKED DOWN ON DISSIDENTS IN 1989 CONSTRUCTION WAS TO BEGIN TWO WEEKS AFTER THE KILLINGS AT TIANANMEN SQUARE THE PROJECT WAS SCRUBBED AND THE COMPANY SAYS IT LOST IN EXCESS OF 5 MILLION YOU HAVE TO BE WILLING TO TAKE THOSE KIND OF RISKS SAYS GARY ROTH TISHMAN SPEYER'S CHIEF FINANCIAL OFFICER ANOTHER OBSTACLE FINALLY IS THE CULTURAL FRUSTRATION IN WORKING ABROAD AMERICAN BUILDERS ACCUSTOMED TO GETTING DOWN TO BUSINESS AFTER A QUICK TELEPHONE CALL FIND THEMSELVES IN LONDON FOR INSTANCE HAVING TO SET UP AN APPOINTMENT THREE WEEKS HENCE BY LETTER OR IN MEXICO AND ASIA DINING FOR HOURS WITHOUT DISCUSSING SERIOUS BUSINESS AS PERSONAL BONDS ARE FORMED WITH ALL THIS AND THE INEVITABLE BUREAUCRATIC RED TAPE DEALS CAN TAKE THREE TIMES AS LONG TO CONSUMMATE AS THEY DO AT HOME YOU HAVE TO HAVE PATIENCE JUST AS YOU WOULD IN THE UNITED STATES SAYS J JOSEPH CLARKE A BALTIMORE HOME BUILDER WHO IS CONSTRUCTING SINGLEFAMILY HOMES IN POLAND SINCE THE CULTURAL GULF IS SO WIDE MOST US REALESTATE COMPANIES FORM PARTNERSHIPS WITH A LOCAL COUNTERPART EVEN THIS HOWEVER DOESN'T SPARE EMBARRASSING MOMENTS SUCH AS THOSE SOME CUSHMAN & WAKEFIELD EXECUTIVES SUFFERED WHEN THEY MET IN HONG KONG A FEW YEARS BACK TO CELEBRATE A NEW PARTNERSHIP WITH A LOCAL BUSINESSMAN WE PRESENTED HIM WITH A NICE TIFFANY CLOCK MR BUGG SAYS NOT REALIZING THAT THAT WAS A SYMBOL OF BAD LUCK THE PARTNERSHIP DID NOT LAST 9305200042 930520 ABREAST OF THE MARKET DOW INDUSTRIALS BREAK 3500 MARK FOR FIRST TIME ON BOND REVERSAL BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE SMASHED THROUGH THE 3500 MARK FOR THE FIRST TIME AS FALLING INTEREST RATES TURNED A MORNING ROUT INTO A SPECTACULAR AFTERNOON RALLY AFTER TUMBLING ALMOST 30 POINTS THE DOW INDUSTRIALS SOARED 5564 POINTS OR 162 TO 350003 SURPASSING ITS OLD RECORD OF 348231 IN A DAY OF HECTIC TRADING THE INDEX WAS HELPED BY HEFTY GAINS IN SEVERAL STOCKS AMERICAN TELEPHONE & TELEGRAPH SOARED 2 3/4 TO 60 1/4 MCDONALD'S CLIMBED 2 1/4 TO 50 1/8 AND WALT DISNEY WAS UP 1 1/2 TO 41 1/2 STANDARD & POOR'S 500STOCK INDEX SURGED 725 POINTS TO 44757 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX BARRELLED 333 POINTS HIGHER TO 24686 BOTH INDEXES ARE SHY OF THEIR RECORD HIGHS SEVERAL TRADERS SUGGESTED THAT THE LATE AFTERNOON RALLY WAS PROMPTED BY SPECULATION THAT FEDERAL RESERVE OFFICIALS HAVE DECIDED TO REFRAIN FROM RAISING SHORTTERM INTEREST RATES AT LEAST FOR NOW THAT RUMOR SPARKED A SWIFT TURNAROUND IN THE BOND MARKET DRIVING THE YIELD ON THE TREASURY'S 30YEAR BOND BACK BELOW THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 7 THE YIELD FELL TO 697 FROM 707 EARLIER IN THE DAY THE FALLING RATES SENT EQUITY INVESTORS SCRAMBLING TO LOAD UP ON STOCKS MONEY MANAGERS AND TRADERS WHO HAD BEEN BETTING THAT STOCK PRICES WOULD CONTINUE TO FALL WERE FORCED TO BUY HEAVILY TO COVER THOSE BETS YOU HAD AN ENORMOUS SHORTCOVERING RALLY SAID THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER THE RISING SHORT INTEREST IN RECENT WEEKS HAD ACCOMPANIED GROWING BEARISHNESS AMONG MONEY MANAGERS AND TRADERS INDEED WHEN TRADING OPENED YESTERDAY ONLY 321 OF 130 INVESTMENT ADVISERS MONITORED BY INVESTORS INTELLIGENCE WERE BULLISH THE LOWEST LEVEL SINCE OCTOBER 1990 THAT SIGNALED TO SOME TRADERS THAT SELLING WAS ABOUT EXHAUSTED AND THE MARKET WAS PRIMED FOR A BIG REVERSAL INVARIABLY WHEN YOU GET THIS SITUATION IT MEANS THAT YOU ARE GOING TO GET A RALLY IN STOCKS SHORTTERM SAID MICHAEL BURKE EDITOR OF INVESTORS INTELLIGENCE VOLUME ON THE BIG BOARD TOTALED 340160000 SHARES MAKING IT THE NINTH BUSIEST TRADING DAY EVER AND THE HEAVIEST SINCE FEB 4 ON TUESDAY TRADING VOLUME WAS 262300000 SHARES ON THE NEW YORK STOCK EXCHANGE THERE WERE 1196 ISSUES ADVANCING 761 DECLINING AND 590 UNCHANGED THE AMERICAN STOCK EXCHANGE'S VALUE INDEX ALSO HIT A HIGH YESTERDAY RISING 170 POINTS TO 42992 AT&T'S BIG GAIN CAME AFTER PAINEWEBBER ANALYST JACK GRUBMAN SAID THE COMPANY WILL BENEFIT FROM THE TIME WARNER AND U S WEST ALLIANCE MUCH OF THE COMMUNICATIONS TRAFFIC FROM THEIR FUTURE NETWORK SHOULD EVENTUALLY FLOW OVER AT&T'S LONGDISTANCE SYSTEM WHAT'S MORE AT&T COULD BECOME A BIG SOURCE OF NETWORK EQUIPMENT FOR THE PROJECT TRANSPORTATION STOCKS WERE AMONG THE STRONGEST GROUPS YESTERDAY THE DOW JONES TRANSPORTATION AVERAGE JUMPED 2962 OR 190 TO 158962 LED BY BIG GAINS IN AIRLINES AND RAILROADS CSX JUMPED 3 1/8 TO 72 3/8 AND CONSOLIDATED RAIL INCREASED 2 1/4 TO 53 3/8 WHILE AMR THE PARENT OF AMERICAN AIRLINES ROSE 1 7/8 TO 71 3/4 AND SOUTHWEST AIRLINES ADDED 1 3/4 TO 38 3/4 FOREST PRODUCTS STOCKS ANOTHER ECONOMICALLY SENSITIVE GROUP WERE ALSO LEADERS YESTERDAY ANALYSTS CITED TUESDAY'S POSITIVE GOVERNMENT REPORT ON APRIL HOUSING STARTS AND A REBOUND IN LUMBER PRICES LOUISIANAPACIFIC ADVANCED 2 5/8 TO 66 WEYERHAEUSER ROSE 2 3/8 TO 44 1/2 AND GEORGIAPACIFIC SURGED 2 3/4 TO 65 1/4 GOLD STOCKS THE MARKET'S RECENT WINNERS GAVE BACK SOME OF THEIR GAINS BATTLE MOUNTAIN GOLD TOPPED THE BIG BOARD MOST ACTIVE LIST EASING 5/8 TO 8 3/4 ON VOLUME OF 55 MILLION ALSO ACTIVE WERE AMERICAN BARRICK WHICH LOST 1 3/8 TO 22 3/8 AND HOMESTAKE MINING WHICH FELL 2 1/4 TO 16 3/4 BANKS AND OTHER FINANCIALRELATED ISSUES RALLIED ALONG WITH THE BOND MARKET LOW INTEREST RATES HAVE LOWERED COSTS FOR BANKING COMPANIES AND HELPED BOOST INDUSTRY PROFITS GAINERS INCLUDED CITICORP WHICH ROSE 3/4 TO 28 1/4 FIRST INTERSTATE BANCORP WHICH JUMPED 2 1/8 TO 57 3/8 BARNETT BANKS WHICH INCREASED 2 1/4 TO 45 1/8 MELLON BANK WHICH ADDED 1 7/8 TO 55 1/4 AND WELLS FARGO WHICH ADVANCED 2 3/4 TO 105 3/8 9305200041 930520 BUSINESS BRIEF MEN'S WEARHOUSE INC FIRM SEES 1STPERIOD NET IN LINE WITH PREDICTIONS MEN'S WEARHOUSE INC FREMONT CALIF FEELS COMFORTABLE WITH ANALYSTS' EXPECTATIONS IT WILL POST EARNINGS OF ABOUT 900000 OR 12 CENTS A SHARE FOR ITS FIRST QUARTER ENDED MAY 1 IN THE YEARAGO PERIOD THE CLOTHING CONCERN POSTED NET INCOME OF 650000 OR 10 CENTS A SHARE THE COMPANY'S CHIEF OPERATING OFFICER DAVID EDWAB SAID SALES IN THE FISCAL FIRST QUARTER ROSE ABOUT 34 TO 44 MILLION FROM 329 MILLION A YEAR AGO COMPARABLE STORE SALES ROSE 10 MR EDWAB ALSO SAID HE IS COMFORTABLE WITH ANALYSTS' EXPECTATIONS FOR YEAREND EARNINGS OF ABOUT 97 CENTS A SHARE BASED ON AN ESTIMATED 81 MILLION SHARES OUTSTANDING LAST YEAR THE COMPANY POSTED EARNINGS OF 80 CENTS A SHARE BASED ON 73 MILLION SHARES OUTSTANDING THE EXECUTIVE SAID HE AGREES WITH EXPECTATIONS THAT MEN'S WEARHOUSE WILL POST SALES OF ABOUT 223 MILLION FOR THE CURRENT FISCAL YEAR ENDING JAN 29 COMPARED WITH SALES OF 170 MILLION LAST YEAR 9305200040 930520 WHAT'S NEWS BUSINESS AND FINANCE STOCKS SOARED SENDING THE DOW JONES INDUSTRIALS UP 5564 POINTS OR 162 TO A RECORD 350003 ON THE BIG BOARD'S NINTHHEAVIEST TRADING DAY EVER THE GOLD RALLY FADED AND BONDS ENDED SUBSTANTIALLY HIGHER WITH THE TREASURY'S 30YEAR BOND PRICE RISING NEARLY 5/8 POINT AND ITS YIELD FALLING BACK BELOW 7 THE STOCK AND BOND MARKETS TUMBLED EARLY IN THE DAY BUT REVERSED COURSE ON GROWING PERCEPTIONS OF MILDER INFLATION CITICORP HIRED KODAK'S EXCHIEF FINANCIAL OFFICER CHRISTOPHER STEFFEN TO OVERSEE THE BANK'S FINANCIAL CONTROLS AND OPERATIONS THE BANKING COMPANY'S MOVE REFLECTS A DESIRE FOR SOMEONE WITH EXPERIENCE AT INDUSTRIAL COMPANIES TO HELP ADMINISTER THE BANK SAY PEOPLE CLOSE TO THE COMPANY FINGERHUT IS BEING INVESTIGATED BY A FEDERAL GRAND JURY OVER INVENTORY PRACTICES AND ALLEGATIONS OF COMMERCIAL BRIBERY AT THE COMPANY THE FBI AND IRS ARE ALSO SAID TO BE CONDUCTING A PROBE OF THE CATALOG MARKETER THE US TRADE DEFICIT DETERIORATED TO 1021 BILLION IN MARCH THE WIDEST GAP IN NEARLY FOUR YEARS THE FIGURE STEMS FROM AN IMPORT SURGE WHICH ANALYSTS SAY CAN'T BE SUSTAINED FEBRUARY'S DEFICIT WAS 791 BILLION CLINTON OFFICIALS PLAN TO PRESS JAPAN TO CUT ITS TRADE SURPLUS OF GOODS AND SERVICES BY MORE THAN HALF THE US WOULD EMPLOY TARGETS FOR TRADE BALANCES WHILE NEGOTIATING OVER VARIOUS INDUSTRIES AND TRADE PRACTICES CLINTON DEFENDED HIS ENERGY TAX IN A CLOSEDDOOR CAUCUS WITH HOUSE DEMOCRATS HE ALSO BLUNTED CONSERVATIVE DEMOCRATS' DEMANDS TO CAP SPENDING ON FEDERAL BENEFITS PROGRAMS US OIL PRODUCTION IS FALLING FASTER THAN EXPECTED AND PETROLEUM IMPORTS ARE RISING AS A RESULT A REPORT SAYS EQUITABLE COS IS EXPLORING SELLING STOCK IN ITS INVESTMENT BANKING UNIT DONALDSON LUFKIN & JENRETTE IN A MOVE THAT COULD RAISE 500 MILLION IN CAPITAL FOR THE ONCETROUBLED INSURER THE UNEMPLOYMENT RATE MAY GO UP AT THE START OF NEXT YEAR IRRESPECTIVE OF THE ECONOMY BECAUSE OF CHANGES IN THE GOVERNMENT'S TALLYING METHODS THE MOVE IS EXPECTED TO PAINT A MORE ACCURATE PICTURE OF EMPLOYMENT DATA GTE PLANS TO SELL SOME OF ITS OPERATIONS IN NINE STATES TO CITIZENS UTILITIES FOR 11 BILLION CONTINUING THE TELEPHONE COMPANY'S EFFORTS TO PRUNE ITS NETWORK TO BECOME MORE PROFITABLE MCI STARTED AN 800 SERVICE AIMED AT WINNING A BIGGER SHARE OF THE HUGE LONGDISTANCE COLLECTCALL MARKET DELL COMPUTER'S STOCK DROPPED 325 OR 96 TO 3075 REFLECTING INVESTORS' WORRIES THAT CUTTHROAT PRICING OF PERSONAL COMPUTERS COULD DENT THE COMPANY'S FIRSTQUARTER EARNINGS IBM ANNOUNCED A SWEEPING SOFTWARE PRICING SCHEME INCLUDING BILLING CUSTOMERS FOR THEIR ACTUAL USAGE IN AN EFFORT TO TURN AROUND COLLAPSING SALES OF ITS MAINFRAME COMPUTERS TWO TOP GOVERNMENT FINANCIAL REGULATORS ARE SPLIT ON WHETHER SENATE LEGISLATION AIMED AT CRACKING DOWN ON HOMEEQUITY LOAN SCAMS WOULD IMPINGE ON LEGITIMATE MORTGAGE CREDIT BONDS LEHMAN BROTHERS TREASURY INDEX 505743 UP 2585 COMMODITIES OIL 1915 A BARREL OFF 19 CENTS DOW JONES FUTURES INDEX 12298 OFF 076 SPOT INDEX 12067 UP 013 DOLLAR 11065 YEN OFF 080 16230 MARKS OFF 00015 FINGERHUT COS SAID A FEDERAL GRAND JURY IS INVESTIGATING ALLEGATIONS OF COMMERCIAL BRIBERY AND KICKBACKS ON THE PART OF A FIRED CHIEF JEWELRY BUYER BUT THE COMPANY SAID IT ISN'T A TARGET OR SUBJECT OF THE PROBE A SUMMARY ITEM IN THE WHAT'S NEWS COLUMN YESTERDAY INCORRECTLY SAID FINGERHUT ITSELF WAS BEING INVESTIGATED BY THE GRAND JURY 9305200039 930520 BUSINESS BRIEF TALISMAN ENERGY INC OFFER IS SWEETENED FURTHER AFTER ENCOR HOLDERS GRIPE TALISMAN ENERGY INC SAID IT SWEETENED FURTHER ITS OFFER FOR ALL SHARES OF ENCOR INC AFTER A DISSIDENT GROUP OF ENCOR HOLDERS COMPLAINED ABOUT THE PREVIOUS BID ENCOR AND TALISMAN ARE BOTH OIL AND GAS COMPANIES BASED IN CALGARY ALBERTA UNDER THE REVISED BID TALISMAN WOULD ISSUE A TOTAL OF 152 MILLION NEW COMMON SHARES GIVING THE OFFER AN INDICATED VALUE OF 3477 MILLION CANADIAN DOLLARS US2742 MILLION THE PREVIOUS OFFER HAD BEEN VALUED AT C290 MILLION TALISMAN SAID IT WILL REDUCE THE NUMBER OF SHARES IT WILL OFFER FOR ENCOR CONVERTIBLE PREFERRED SHARES ALL OF WHICH ARE HELD BY BCE INC A MONTREAL HOLDING COMPANY BCE SAID IT SUPPORTS THE NEW OFFER ENCOR'S BOARD ENDORSED THE REVISED OFFER WHICH IS TO BE VOTED ON BY THE COMPANY'S SHAREHOLDERS TODAY WILLIAM RIEDL PRESIDENT OF ALLENVEST GROUP LTD A TORONTO CONCERN THAT REPRESENTS THE DISSIDENT HOLDERS SAID THAT GROUP ALSO PLANS TO VOTE IN FAVOR OF THE REVISED OFFER 9305200038 930520 INTERNATIONAL BRIEF FOSTER'S BREWING GROUP LTD AUSTRALIAN FIRM ANNOUNCES SECOND CHINESE BEER VENTURE FOSTER'S BREWING GROUP LTD OF AUSTRALIA FORMED A SECOND JOINT VENTURE TO BREW BEER IN CHINA ONE DAY AFTER ANNOUNCING ITS FIRST FOSTER'S SAID ITS CARLTON & UNITED BREWERIES UNIT SIGNED A CONTRACT TO FORM THE VENTURE WITH PRINCESS BREWERY IN DOUMEN NEAR MACAU THE VENTURE IS NAMED GUANGDONG FOSTER'S BREWERY LTD ON TUESDAY FOSTER'S FORMED A SIMILAR JOINT VENTURE WITH THE HUAGUANG BREWERY IN SHANGHAI FOSTER'S IS SEEKING TO CREATE A NATIONAL BEER BRAND FOR THE CHINESE MARKET AND PLANS TO MAKE NEARLY AS MUCH BEER IN CHINA WITHIN FIVE YEARS AS IT CURRENTLY DOES IN AUSTRALIA INITIALLY FOSTER'S WILL INVEST 10 MILLION AUSTRALIAN DOLLARS US69 MILLION IN DOUMEN AND INTENDS TO CONTRIBUTE 90 MILLION AUSTRALIAN DOLLARS MORE OVER THE NEXT FOUR OR FIVE YEARS FOSTER'S WILL PROVIDE 60 OF THE FUNDING AS IT IS DOING IN SHANGHAI WHILE SEVERAL INTERNATIONAL BREWERS HAVE VENTURES IN CHINA FOSTER'S SAID IT IS THE FIRST TO HAVE TWO AND PLANS MORE 9305200037 930520 BUSINESS BRIEF FLEMING COMPANIES INC UNIT IS CREATED TO OVERSEE GROWTH IN MARKETS ABROAD FLEMING COMPANIES INC SAID IT FORMED A NEW COMPANY FLEMING INTERNATIONAL LTD TO COORDINATE ITS EXPANSION INTO INTERNATIONAL MARKETS INCLUDING MEXICO CENTRAL AMERICA SOUTH AMERICA AND RUSSIA THE OKLAHOMA CITYBASED SUPPLIER OF GROCERY PRODUCTS SAID IT EXPECTS ANNUAL GROWTH OF 20 TO 25 IN FOREIGN MARKETS COMPARED WITH 4 TO 6 GROWTH IN DOMESTIC MARKETS WHERE COMPETITION IS STIFFER IN RECENT YEARS INTERNATIONAL MARKETS HAVE ACCOUNTED FOR ABOUT 200 MILLION OF THE COMPANY'S ANNUAL REVENUE OF NEARLY 13 BILLION PRESENTLY FLEMING OPERATES A STORE IN A MOSCOW SHOPPING CENTER AND THE COMPANY SAID IT IS CONSIDERING NEW JOINT VENTURES SIMILAR TO A PLAN ANNOUNCED LAST YEAR TO BUILD LOWPRICE SUPERMARKETS IN MEXICO WITH GRUPO GIGANTE SA DE CV THAT PARTNERSHIP HAS OPENED TWO STORES AND FOUR MORE ARE PLANNED BY THE END OF THE YEAR FLEMING SAID 9305200036 930520 BUSINESS BRIEF ADVANCE PUBLICATIONS INC RANDOM HOUSE INC ACQUIRES BANTAM DOUBLEDAY DIVISION RANDOM HOUSE INC SAID IT ACQUIRED THE ELECTRONICPUBLISHING DIVISION OF BANTAM DOUBLEDAY DELL PUBLISHING GROUP INC TERMS WEREN'T DISCLOSED BUT THE MOVE WILL ESSENTIALLY DOUBLE THE NUMBER OF COMPUTER BOOK TITLES PUBLISHED BY NEW YORKBASED RANDOM HOUSE ANNUALLY BANTAM ELECTRONIC PUBLISHING WAS PUBLISHING ABOUT 45 TITLES A YEAR WHILE RANDOM HOUSE PUBLISHED ABOUT 35 ALBERTO VITALE CHAIRMAN OF RANDOM HOUSE SAID THE NEWLY EXPANDED DIVISION WILL PUBLISH 50 TO 60 TITLES PER YEAR RANDOM HOUSE WHICH IS A DIVISION OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC HAS BECOME INCREASINGLY ACTIVE IN ELECTRONIC PUBLISHING WITH TITLES LIKE ITS MODERN LIBRARY CLASSICS LICENSED IN MULTIMEDIA VERSIONS BANTAM DOUBLEDAY IS A UNIT OF GERMANY'S BERTELSMANN AG 9305200035 930520 WHAT'S NEWS WORLDWIDE BOSNIAN SERBS DEMANDED PEACE BUT SET THEIR OWN TERMS A DECLARATION APPROVED BY THE SELFSTYLED BOSNIAN SERB PARLIAMENT AFTER THE REJECTION OF A PEACE TREATY SAID THE ARMY WOULD CEASE MILITARY OPERATIONS AND ABIDE BY SEPARATE CEASEFIRE ACCORDS SIGNED WITH MUSLIM AND CROAT FORCES IN THE PAST 12 DAYS THE DECREE ALSO INVITED DIPLOMATS TO OFFER NEW PEACE PROPOSALS AND SOLUTIONS THE ASSEMBLY ADOPTED THE DECREE AFTER PUBLISHING OFFICIAL RESULTS OF THE WEEKEND REFERENDUM IN WHICH 96 VOTED AGAINST THE UNBACKED PEACE PLAN AND IN FAVOR OF AN INDEPENDENT SERB STATE SERB LEADER KARADZIC SAID THE WORLD COULD NOT IGNORE SERBS' DESIRE FOR THEIR OWN STATE THE US SAID IT HAD NO PLANS TO TAKE PART IN A PROPOSED FORCE OF BORDER MONITORS TO VERIFY THAT SERBIA HAS CUT OFF ARMS SUPPLIES TO ITS ALLIES IN BOSNIA POLICE IN COPENHAGEN FIRED AT LEFTIST DEMONSTRATORS IN RIOTING THAT BROKE OUT SHORTLY AFTER DANISH VOTERS APPROVED A TREATY ON CLOSER EUROPEAN COOPERATION AT LEAST 10 PROTESTERS AND 24 POLICEMEN WERE INJURED IN THE MOST SERIOUS CONFRONTATIONS WITH ANTIGOVERNMENT PROTESTERS IN DECADES BRITAIN'S MAJOR ASSURED REBELS IN HIS CONSERVATIVE PARTY THAT THE MAASTRICHT TREATY ON EUROPEAN UNITY WOULDN'T UNDERMINE BRITISH SOVEREIGNTY THE PRIME MINISTER EXPECTS TO WIN A RATIFICATION VOTE IN THE HOUSE OF COMMONS TODAY BUT THE TREATY FACES OPPOSITION IN THE HOUSE OF LORDS CLINTON RECOGNIZED THE FORMERLY MARXIST GOVERNMENT OF ANGOLA CITING ITS SIGNIFICANT STRIDES TOWARD DEMOCRACY THE ELECTED GOVERNMENT OF JOSE EDUARDO DOS SANTOS HAS BEEN FIGHTING A CIVIL WAR WITH THE UNITA REBEL MOVEMENT A US ALLY IN THE 1980S CLINTON SAID HE MADE HIS DECISION AFTER THE REBELS REFUSED TO ACCEPT A PEACE PLAN UNINSURED AMERICANS WOULD PAY MORE OUTOFPOCKET EXPENSES FOR HEALTH BENEFITS THAN EVERYONE ELSE FOR A FEW YEARS UNDER A PLAN THE CLINTON ADMINISTRATION IS CONSIDERING AS A WAY TO EASE THE BURDEN ON SMALL EMPLOYERS VENEZUELAN TROOPS GUARDED THE SUPREME COURT IN CARACAS AMID FEARS OF UNREST AS THE COURT NEARED A DECISION ON WHETHER TO INDICT PRESIDENT PEREZ ON CHARGES OF EMBEZZLEMENT AND MISUSE OF PUBLIC FUNDS IN A TELEVISED SPEECH THE 70YEAROLD PRESIDENT VOWED NOT TO RESIGN AND SAID HE WOULD BE ACQUITTED IF THE COURT ORDERED A TRIAL THE WHITE HOUSE FIRED THE SEVEN VETERAN EMPLOYEES OF ITS TRAVEL OFFICE CITING MISMANAGEMENT AND SHODDY ACCOUNTING AND ASKED THE FBI TO INVESTIGATE WHETHER THE EMPLOYEES RECEIVED KICKBACKS FROM VENDORS THE OFFICE COORDINATES THE TRAVEL ARRANGEMENTS FOR THE WHITE HOUSE STAFF AND PRESS CORPS A HOUSE COMMITTEE APPROVED LEGISLATION TO CODIFY A WOMAN'S RIGHT TO HAVE AN ABORTION BEATING BACK RESTRICTIVE AMENDMENTS THE FREEDOM OF CHOICE ACT WHICH CLEARED THE JUDICIARY COMMITTEE ON A 2015 VOTE WAS DESIGNED TO COUNTER SUPREME COURT RULINGS THAT HAVE WEAKENED THE 1973 DECISION RECOGNIZING A CONSTITUTIONAL RIGHT TO AN ABORTION RUSSIA'S HIGH COURT BLOCKED AN ATTEMPT BY PARLIAMENT TO TAKE OVER IZVESTIA A NEWSPAPER THAT BACKS PRESIDENT YELTSIN THE COURT RULED THAT A RESOLUTION BY PARLIAMENT LAST JULY ANNULLING THE PAPER'S INDEPENDENT STATUS WAS UNCONSTITUTIONAL IZVESTIA REGISTERED AS AN INDEPENDENT PAPER IN 1991 AFTER THE BANNING OF THE COMMUNIST PARTY VITAMIN E SUPPLEMENTS ARE LINKED TO A 40 LOWER RISK OF HEART DISEASE TWO STUDIES FOUND THE FINDINGS ARE PERHAPS THE STRONGEST EVIDENCE YET THAT VITAMIN E CAN HELP PREVENT HEART ATTACKS BUT RESEARCHERS SAID THE FINDINGS SHOW ONLY A STATISTICAL CORRELATION NOT PROOF THAT VITAMIN E PILLS REDUCE THE RISK OF HEART DISEASE A SIXTH SUSPECT WAS INDICTED IN THE BOMBING AT NEW YORK'S WORLD TRADE CENTER MOHAMMAD AHMAD AJAJ A 27YEAROLD PALESTINIAN WAS CHARGED WITH CONSPIRING TO PLANT THE BOMB WHICH KILLED SIX PEOPLE HE ALLEGEDLY TRAVELED FROM PAKISTAN TO NEW YORK WITH ANOTHER SUSPECT BRINGING MANUALS ON EXPLOSIVE DEVICES ASPIN APPOINTED A PANEL OF EIGHT RETIRED GENERALS AND ADMIRALS TO STUDY THE IMPACT ON THE ARMED FORCES OF BUDGET CUTS AND NEW ROLES FOR WOMEN AND HOMOSEXUALS THE DEFENSE SECRETARY SAID THE STUDY WAS NEEDED TO WAVE FLAGS AT CONGRESS AND THE PENTAGON BEFORE PROBLEMS OF MILITARY READINESS AND MORALE WEAKENED THE ARMED FORCES 9305200034 930520 MARKETING BRIEF TELECOMMUNICATIONS INC LATIN AMERICAN TV VENTURES PLANNED FOR GRUPO TELEVISA TELECOMMUNICATIONS INC AND GRUPO TELEVISA SA SAID THEY AGREED TO FORM A JOINT VENTURE TO DEVELOP CABLE AND PAY TELEVISION THROUGHOUT LATIN AMERICA AS PART OF THE ASSOCIATION TELECOMMUNICATIONS SAID IT AGREED TO ACQUIRE A 49 STAKE IN CABLEVISION TELEVISA'S CABLE SUBSIDIARY TELECOMMUNICATIONS AND TELEVISA ALSO SAID THEY WOULD CREATE A NEW JOINTLY OWNED MEXICAN COMPANY TO EXPAND CABLE PAY AND HIGHDEFINITION TELEVISION IN OTHER LATIN AMERICAN COUNTRIES THE VALUE OF THE TRANSACTION WASN'T DISCLOSED AND A SPOKESWOMAN FOR DENVERBASED TELECOMMUNICATIONS DECLINED TO PROVIDE DETAILS IN 1992 CABLEVISION HAD SALES OF 79 MILLION OR ABOUT 6 OF TELEVISA'S TOTAL REVENUE TELEVISA IS A SPANISHLANGUAGE COMMUNICATIONS FIRM THE COMPANIES SAID THE VENTURE IS SUBJECT TO APPROVAL BY REGULATORS AND THE BOARDS OF BOTH COMPANIES 9305200033 930520 MARKETING BRIEF NOTED WHO'S NEWS TIME WARNER INC NEW YORK NAMED STANLEY B THOMAS JR 51 PRESIDENT AND CHIEF OPERATING OFFICER OF A JOINT VENTURE WITH SEGA OF AMERICA INC A UNIT OF SEGA ENTERPRISES LTD AND TELECOMMUNICATIONS INC THE VENTURE WILL LAUNCH THE SEGA CHANNEL A CABLE TV CHANNEL OFFERING VIDEO GAMES MR THOMAS ALSO WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE SEGA CHANNEL WHEN IT IS LAUNCHED HE HAD BEEN SENIOR VICE PRESIDENT OF THE TIME WARNER ENTERPRISES UNIT SINCE 1990 ELECTRONIC WINE GUIDE FRANKLIN ELECTRONIC PUBLISHERS INC MOUNT HOLLY NJ SAID IT REACHED AGREEMENT WITH NOTED WINE CRITIC ROBERT M PARKER JR TO PUBLISH AN ELECTRONIC VERSION OF PARKER'S WINE BUYER'S GUIDE 199394 MR PARKER'S GUIDE EVALUATES MORE THAN 6000 WINES OF RECENT VINTAGE STOCK CAR RACING NEWS NEWS AMERICA FSI INC A DIVISION OF NEWS CORP SIGNED AN AGREEMENT WITH THE NATIONAL ASSOCIATION FOR STOCK CAR AUTO RACING TO PUBLISH THE FIRST ASSOCIATIONTHEMED NEWSPAPER INSERT IN APRIL 1994 9305200032 930520 BUSINESS BRIEF GENESEE CORP CHARGES AGAINST EARNINGS ARE DETAILED FOR FISCAL YEAR GENESEE CORP SAID IT WILL TAKE A 14 MILLION PRETAX CHARGE AGAINST EARNINGS FOR THE COST OF SHUTTING ITS MALTMAKING OPERATION INSTEAD OF MANUFACTURING ITS OWN MALT THE BREWERY NOW PURCHASES ITS SUPPLY FROM CLOSELY HELD RAHR MALTING CO OF SHAKOPEE MINN GENESEE'S FISCAL YEAR ENDED APRIL 30 AND EARNINGS ARE EXPECTED TO BE RELEASED IN JULY THE ROCHESTER NY BREWERY SAID IT WILL ALSO TAKE AN AFTERTAX CHARGE OF 82 MILLION OR 517 A SHARE AGAINST EARNINGS IN CONJUNCTION WITH ITS ADOPTION OF FINANCIAL ACCOUNTING STANDARD NO 106 THE RULE REQUIRES COMPANIES TO ACCOUNT FOR RETIREMENT BENEFITS WHILE EMPLOYEES ARE STILL WORKING THE BREWERY ALSO EXPECTS A ONETIME AFTERTAX GAIN OF 14 MILLION OR 88 CENTS A SHARE FROM ITS ADOPTION OF FINANCIAL ACCOUNTING STANDARD NO 109 THE RULE CHANGES THE WAY A COMPANY ACCOUNTS FOR INCOME TAX 9305200031 930520 SHOT DOWN WITH COLD WAR OVER THE MILITARYINDUSTRIAL COMPLEX IS DISSOLVING ARMED SERVICES ARE TAKING WORK FROM CONTRACTORS CONGRESS SHUNS OLD PALS A RISK TO FUTURE US POWER BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL FORT MCNAIR DISTRICT OF COLUMBIA HERE AT THE INDUSTRIAL COLLEGE OF THE ARMED FORCES YOU CAN EAVESDROP ON THE BREAKUP OF THE MILITARYINDUSTRIAL COMPLEX LEAVING A SEMINAR THOMAS WHITTAKER A VICE PRESIDENT AT ALLIANT TECHSYSTEMS INC CONFRONTS LT GEN LEO PIGATY DEPUTY CHIEF OF THE ARMY MATERIEL COMMAND MR WHITTAKER COMPLAINS ABOUT HOW THINGS HAVE CHANGED SINCE THE OLD DAYS WHEN THE ARMY WAS A STEADY CUSTOMER FOR THE TANK ROUNDS AND OTHER MUNITIONS THAT HIS COMPANY MAKES NOW GEN PIGATY IS SELLING SURPLUS MUNITIONS OVERSEAS CUTTING INTO ALLIANT'S MARKET OUR CUSTOMERS ARE BECOMING OUR COMPETITORS MR WHITTAKER GRUMBLES THE GENERAL SHRUGS NOTING THAT HIS OPERATION IS DOWNSIZING TOO FOR THE FIRST TIME IN DECADES THE RULES OF THE DEFENSE GAME NOT JUST THE BUDGETS ARE SHIFTING FROM THE BEGINNING OF THE COLD WAR IN THE EARLY 1950S DEFENSE SPENDING WAS DOMINATED BY THE MUTUALLY REINFORCING INTERESTS OF THE MILITARY WHICH WANTED WEAPONS THE DEFENSE INDUSTRY WHICH WANTED THE CONTRACTS TO BUILD THEM AND MEMBERS OF CONGRESS WHO WANTED THE RESULTING JOBS IN THEIR DISTRICTS THIS FORMIDABLE MILITARYINDUSTRIAL COMPLEX PRESIDENT EISENHOWER WARNED IN 1961 COULD WIELD UNWARRANTED INFLUENCE IN 1981 GORDON ADAMS A WASHINGTON ECONOMIST CALLED THE ALLIANCE THE IRON TRIANGLE IN AN INFLUENTIAL ANALYSIS BUT NOW WORKING AS A BUDGET ANALYST IN THE CLINTON WHITE HOUSE HE THINKS THE IRON TRIANGLE HAS CRUMBLED INDEED EXPERTS ON ALL SIDES SAY IT HAS BEEN BEATEN DOWN BY THE END OF THE COLD WAR THE BUDGET SQUEEZE AND THE DEFENSE SECTOR'S DIMINISHING ROLE IN THE ECONOMY IF SO THE IMPLICATIONS ARE VAST FOR THE US MILITARY AND FOR THE DEFENSE INDUSTRY THE CHANGE SUGGESTS THAT THE DEFENSE BUDGET WITH THE CONGRESSIONAL FLOOR REMOVED COULD PLUMMET TO ABOUT 2 OF GROSS DOMESTIC PRODUCT A LEVEL NOT SEEN SINCE 1940 MORE IMPORTANT IT RAISES QUESTIONS ABOUT WHETHER THE US CAN CONTINUE TO MOUNT A GLOBAL MILITARY PRESENCE WHAT IS CLEAR ALREADY IS THAT THE ALLIANCES THAT ONCE KEPT FUNDS FLOWING TO THE MILITARY ARE DISINTEGRATING WITH ERSTWHILE CRONIES BECOMING ADVERSARIES IN A FIGHT FOR SLICES OF A SHRINKING PIE SOME EVIDENCE THE AEROSPACE INDUSTRIES ASSOCIATION WHICH ONCE TALKED OF A GOVERNMENTINDUSTRY PARTNERSHIP IS BITTERLY ACCUSING THE PENTAGON OF TRYING TO NATIONALIZE THE DEFENSE INDUSTRY THE MILITARY TO SAVE MONEY AND PRESERVE ITS OWN OPERATIONS IS SHUTTING OUT CONTRACTORS AND TAKING MORE WORK INHOUSE WORK RANGING FROM REPAINTING AIRCRAFT TO MAKING SPARE PARTS TO BUILDING GUN MOUNTS FOR TANKS THE MILITARY IS ALSO TREATING CONGRESS DIFFERENTLY GLEEFULLY USING BASE CLOSINGS TO MAKE THE POLITICIANS FEEL THE PAIN OF DEFENSE CUTBACKS MANY MEMBERS OF CONGRESS ARE STEERING CLEAR OF DEFENSE MATTERS THIS YEAR MORE THAN TWICE AS MANY MEMBERS OF THE FRESHMAN CLASS IN THE HOUSE BID FOR SEATS ON THE SCIENCE AND TECHNOLOGY COMMITTEE AS FOR THE ARMED SERVICES PANEL IN THE SHORT RUN THE DEFENSE INDUSTRY FACES UNCERTAINTY DISRUPTION AND INDECISION IN THE LONG RUN IT FACES TWO OPTIONS NEITHER VERY APPETIZING ITS ENDANGERED SECTORS SUCH AS MAKERS OF NUCLEAR SUBMARINES TANKS AND COMBAT AIRCRAFT COULD BECOME REGULATED MONOPOLIES OR PARTS OF THE INDUSTRY MIGHT BE TAKEN OVER BY THE MILITARY IN A RETURN TO THE PREWORLD WAR II ARSENAL SYSTEM WHEN MUCH MORE EQUIPMENT WAS PRODUCED AND MAINTAINED IN GOVERNMENT PLANTS IN ADDITION DEFENSE WORK MAY BECOME LESS INNOVATIVE AS PRIVATESECTOR COMPETITION DWINDLES THE POSITIVE SIDE HOWEVER IS THAT MILITARY SPENDING MAY EVENTUALLY BECOME MORE RATIONAL DRIVEN BY MILITARY NEEDS MORE THAN POLITICAL PRESSURES THERE'S GOING TO BE A VERY DIFFERENT STRUCTURE WHEN IT'S ALL OVER SAYS GARY DENMAN DIRECTOR OF THE ADVANCED RESEARCH PROJECTS AGENCY THE PENTAGON'S OFFICE FOR SUPPORTING CUTTINGEDGE TECHNOLOGY I DON'T THINK WE KNOW WHAT IT'S GOING TO BE THAT'S ONE OF THE THINGS THE NEW TEAM AT THE PENTAGON IS FACING AT AN INDUSTRY MEETING IN FREDERICKSBURG VA LAST FALL GEN RONALD YATES WHO HEADS THE AIR FORCE MATERIEL COMMAND DECLARED WAR WE ARE RADICALLY CHANGING WAYS WE DO BUSINESS IN THE UNITED STATES AIR FORCE I DON'T INTEND TO CLOSE ANY DEPOTS I INTEND TO TAKE WORK AWAY FROM YOU TO KEEP MY DEPOTS OPEN SO I AM A TYRANNOSAURUS IF YOU'RE SITTING THERE EATING MY CABBAGE I INTEND TO TAKE YOUR CABBAGE AWAY FROM YOU THE REACTION RECALLS ONE DEFENSE LOBBYIST IN THE AUDIENCE WAS STUNNED SILENCE AFTER ALL THE SOLID BASE OF THE IRON TRIANGLE WAS THE ENDURING RELATIONSHIP BETWEEN THE PENTAGON AND THE INDUSTRY OVER THE YEARS MORE THAN A FEW OFFICERS AND DEFENSE OFFICIALS GOT IN HOT WATER FOR HELPING OLD BUDDIES WHO HAD RETIRED AND GONE TO WORK FOR THE CONTRACTORS OTHERS CALL THE ARRANGEMENT A DE FACTO INDUSTRIAL POLICY THAT YIELDED CRITICAL BREAKTHROUGHS IN COMPUTERS AND AVIATION NOW THE WEAPONSPROCUREMENT BUDGET IS LESS THAN HALF ITS 1985 PEAK OF 968 BILLION WHEN THE REAGAN BUILDUP WAS POURING MONEY INTO NEW WEAPONS PLATFORMS SUCH AS SHIPS AIRCRAFT AND ARMORED VEHICLES AND IT STILL IS DECLINING LACKING CONTRACTS TO BUILD NEW WEAPONS THE INDUSTRY IS TRYING TO STAY ALIVE BY MAINTAINING EXISTING WEAPONS THE PROBLEM IS THE SERVICES WHICH OPERATE THREE DOZEN FACILITIES EMPLOYING MORE THAN 100000 PEOPLE HUNGER FOR THE SAME JOBS IN DECEMBER THE AIR FORCE'S WARNER ROBINS AIR LOGISTICS CENTER IN GEORGIA COMPETED AGAINST PRIVATE CONTRACTORS FOR REPAIR WORK ON THE WINGS OF 113 C141S BUILT BY LOCKHEED CORP ITS 62 MILLION BID WAS ESTIMATED TO BE 50 LOWER THAN THE NEXTBEST OFFER SUPPOSEDLY MADE BY THE AIR FORCE'S OLD FRIENDS AT LOCKHEED AT ABOUT THE SAME TIME WARNER ROBINS LET IT BE KNOWN THAT IT WAS CONTEMPLATING DOING SOME ASSEMBLY WORK ON THE F22 FIGHTER NOW BEING DEVELOPED BY LOCKHEED AND BOEING CO THE NAVY HAS ALSO BEGAN EATING ITS CONTRACTORS' LUNCHES SINCE BUILDING THE HELLCAT FIGHTER DURING WORLD WAR II GRUMMAN CORP HAS SUPPLIED MOST OF THE NAVY'S AIRCRAFT INCLUDING THE F14 TOMCAT FIGHTER AND THE A6 INTRUDER BOMBER BUT IN RECENT YEARS THE NAVAL AVIATION DEPOT AT NORFOLK HAS BEEN NIBBLING AT GRUMMAN'S WORK FIRST IT TOOK AWAY A GRUMMAN CONTRACT TO STRIP AND REPAINT TOMCATS A SURPRISINGLY COMPLEX JOB REQUIRING LOWRADARREFLECTIVE PAINTS GRUMMAN HAD BEEN CHARGING THE NAVY 120000 PER PLANE A NAVY OFFICIAL SAYS NORFOLK'S BID WAS 28000 APIECE THEN NORFOLK BID FOR AND WON A CONTRACT TO UPGRADE THE F14 WE ACTUALLY TEAR THE THINGS CLEAN APART GRUMMAN DIDN'T THINK WE COULD DO IT SAYS GERALD HENSLEY DIRECTOR OF NORFOLK'S F14 MAINTENANCE AND UPGRADES SHOP IN A NAVY HANGAR OVERLOOKING THE BAY WHERE THE MONITOR BATTLED THE MERRIMACK HE STRIDES PAST THE STRIPPEDDOWN SHELLS OF 30 OF THE AGING FIGHTERS BARELY RECOGNIZABLE WITH ENGINES WINGS AND NOSES REMOVED NORFOLK SPRUCES THEM UP FOR 5 MILLION EACH COMPARED WITH GRUMMAN'S 14 MILLION EVEN THE ARMY LONG CONSIDERED THE LEAST INNOVATIVE SERVICE IS GETTING INTO THE ACT ITS ROCK ISLAND ARSENAL IS MAKING HALF THE MOUNTS FOR THE 120MM GUN ON THE M1A2 TANK ORIGINALLY GENERAL DYNAMICS CORP MADE THEM THE ARMY MAY DECIDE NEXT MONTH TO SHIFT EVEN MORE OF THAT WORK INHOUSE ON A PENDING SALE OF 524 TANKS TO EGYPT THE GOVERNMENT IS MAKING ALL THE GUN MOUNTS INDUSTRY OFFICIALS COMPLAIN THAT THERE IS NO FAIR COMPETITION WITH THE SERVICES WHICH AFTER ALL DON'T HAVE TO ANSWER TO SHAREHOLDERS OR SHOW PROFITS RONALD SMITH DIRECTOR OF GRUMMAN'S CORPORATE CONTRACTS AND BUSINESS POLICY ALSO NOTES THAT THEY'RE THE JUDGE AND THE JURY IN DECIDING WHO GETS THE JOBS TO GENERAL DYNAMICS CHAIRMAN WILLIAM ANDERS IT'S ALMOST A FARCE THE PLAYING FIELD IS DEFINITELY NOT LEVEL LEVEL FIELD OR NOT THE GAME GETS INTENSE CHERYL PLEASANT A FORMER AIRCRAFTINSTRUMENTS MECHANIC AND NOW BUSINESS MANAGER OF THE NAVY'S NORFOLK DEPOT SAYS THAT THAT FACILITY HAS BEEFED UP ITS SECURITY PROCEDURES SINCE THE COLD WAR ENDED TO GUARD NOT AGAINST SPIES BUT AGAINST NOSY CONTRACTORS NOW WE GUARD OUR PERFORMANCE AND RATE INFORMATION BECAUSE IT'S BUSINESSSENSITIVE SHE SAYS KENT KRESA CHIEF EXECUTIVE OF NORTHROP CORP WARNS THAT BECAUSE THE GOVERNMENTINDUSTRY ALLIANCE IS CRUMBLING CONTRACTORS MAY NOT BE AROUND TO PROVIDE THE NEXT GENERATION OF WEAPONS SYSTEMS BACK AT THE NORFOLK NAVAL AVIATION DEPOT SUCH PLEAS DRAW DERISION BASICALLY THEIR ARGUMENT IS LET US SPEND YOUR MONEY INEFFICIENTLY AND RIDICULOUSLY SO 10 YEARS FROM NOW THEY'LL BE OPEN HOOTS MR HENSLEY SECRETARY OF DEFENSE LES ASPIN'S OFFICE HAS HINTED LATELY THAT HE RECOGNIZES THE JEOPARDY THE INDUSTRY IS IN AS PART OF A PENDING REVIEW OF HOW TO RESHAPE THE US MILITARY HE WILL CONSIDER PROPOSALS IN THE NEXT FEW MONTHS TO CURTAIL THE DEPOT SYSTEM TO THROW MORE REPAIR AND MAINTENANCE WORK TO THE PRIVATE SECTOR SUCH A MOVE WOULD PLEASE THE INDUSTRY BUT NOT CONGRESS WHICH JEALOUSLY GUARDS THE TENS OF THOUSANDS OF CIVILIAN JOBS AT DEPOTS THE PENTAGON USED TO KNOW HOW TO HANDLE CONGRESS RECOGNIZE DEFENSE ACQUISITION IS A TWOWAY STREET TEACHES A TEXTBOOK ON PENTAGONCONGRESSIONAL RELATIONS PUBLISHED BY THE DEFENSE SYSTEMS MANAGEMENT COLLEGE WHERE PENTAGON OFFICIALS LEARN HOW TO BUY WEAPONS AND INFLUENCE CONGRESS DEPENDENCE ON EACH OTHER PRODUCES A WINWIN' SITUATION WORK TOWARD IT THAT AT LEAST WAS THE WAY THE SYSTEM USED TO WORK CONGRESS GAVE THE MILITARY MONEY AND THE PENTAGON RETURNED THE FAVOR BY STUFFING KEY CONGRESSIONAL DISTRICTS WITH JOBS NO PROJECT HIGHLIGHTED THIS APPROACH MORE THAN ROCKWELL INTERNATIONAL CORP'S B1 BOMBER IN WHICH THE AIR FORCE DROPPED THE SUBCONTRACT MANNA ON 400 OF THE 435 CONGRESSIONAL DISTRICTS FOR THE NAVY THE STRATEGY INVOLVED HOME PORTS SPRINKLED AROUND THE COUNTRY TO TURN DOZENS OF LAWMAKERS INTO NAVY BOOSTERS DUBBED HOME PORKING BY CRITICS THE APPROACH COST MORE THAN 1 BILLION TO DISPERSE SHIPS' BERTHS TO A DOZEN CITIES NOW THE NAVY FACED WITH DECLINING BUDGETS IS CONSOLIDATING PORTS AND CLOSING EXCESS FACILITIES IN A STUNNING MOVE THE PENTAGON BASECLOSERS HIT HARDEST IN OAKLAND CALIF REPRESENTED BY REP RON DELLUMS CHAIRMAN OF THE HOUSE ARMED SERVICES COMMITTEE AND IN CHARLESTON SC REPRESENTED BY SEN STROM THURMOND THE RANKING REPUBLICAN ON THE SENATE ARMED SERVICES COMMITTEE SOME IN THE PENTAGON HAVE USED THE BASE CLOSINGS AS A FORM OF POLITICAL REVENGE MAKING LAWMAKERS SHARE THE PAIN OF THE BUDGET CUTS IN THE LONG RUN THAT MAY ERODE THE MILITARY'S INFLUENCE IN CONGRESS THEY MAY WAKE UP 10 YEARS FROM NOW TO FIND THEY DON'T HAVE THE SUPPORT THEY'VE HAD WARNS REP JOHN SPRATT JR A SOUTH CAROLINA DEMOCRAT BUT SOME MILITARY PROFESSIONALS SEE THE LOSS OF SUPPORT AS AN INEVITABLE SIDE EFFECT OF THE GENERALLY HEALTHY TREND OF MAKING THE MILITARY BUDGET LESS POLITICAL SAYS ONE POLITICALLY SAVVY NAVY OFFICER YOU'VE GOT FEWER MEMBERS OF CONGRESS WITH A VESTED INTEREST FEWER CHAMPIONS SO WHEN YOU WANT TO GET SOMETHING THROUGH IT'S GOING TO HAVE TO MAKE IT ON ITS MERITS WITH THE MILITARY ON THE BUDGET WARPATH THERE IS A GROWING SENSE IN CONGRESS THAT DEFENSE IS A SPECIALTY BEST AVOIDED THIS YEAR FOR EXAMPLE 19 MEMBERS OF THE FRESHMAN CLASS IN THE HOUSE ASKED FOR SEATS ON THE SCIENCE AND TECHNOLOGY COMMITTEE HISTORICALLY A BACKWATER WHILE ONLY SEVEN ASKED FOR ARMED SERVICES WHICH IN THE PAST OFFERED SOME PRESTIGE AND MUCH PORK WITH THE DEFENSE BUDGET BEING CUT BACK IT'S NOT VERY PLEASANT NOTES ONE HOUSE AIDE THE MAIN QUESTIONS INVOLVE WHICH COMPANIES GO OUT OF BUSINESS WHICH COMMUNITIES BECOME GHOST TOWNS WHICH SERVICE TAKES THE BIGGEST PERSONNEL CUTS FINALLY CONGRESS IS CHANGING AS A NEW GENERATION TAKES OFFICE OUR SIDE OF THE TRIANGLE INCREASINGLY WILL BE PEOPLE WHO DON'T HAVE A MILITARY BACKGROUND AND THE PENTAGON WILL HAVE TO ADJUST TO THAT REALITY SAYS REP GLENN BROWDER AN ALABAMA DEMOCRAT WITH BOTH A DOCTORATE IN POLITICAL SCIENCE AND A SEAT ON THE ARMED SERVICES COMMITTEE FOR MILITARY OFFICERS THE ARMED SERVICES REMAIN A WAY OF LIFE BUT TO MANY IN CONGRESS THE PENTAGON LOOKS LIKE JUST ANOTHER AGENCY WITH ITS HAND OUT NOT MUCH DIFFERENT THAN HOUSING AND URBAN DEVELOPMENT WHEN THE IRON TRIANGLE WAS STILL INTACT CONTRACTORS COULD APPEAL DIRECTLY TO CONGRESS TO FUND PROJECTS THAT HAD LOST APPEAL TO THE MILITARY AS RECENTLY AS LAST FALL FOR EXAMPLE GENERAL DYNAMICS PERSUADED LAWMAKERS TO SHOEHORN THE PURCHASE OF 24 F16 FIGHTERS INTO THE DEFENSE BILL EVEN THOUGH THE AIR FORCE DIDN'T WANT THEM OF COURSE GENERAL DYNAMICS WAS QUITTING THE AIRCRAFT BUSINESS SO IT COULD AFFORD TO CROSS OLD CUSTOMERS IN THE AIR FORCE THIS YEAR THE V22 OSPREY TILTROTOR TROOP TRANSPORT LOOMS AS A MAJOR BATTLE THE MARINE CORPS AND ITS POWERFUL CONGRESSIONAL LOBBY LED BY REP JOHN MURTHA A PENNSYLVANIA DEMOCRAT WANTS IT TO SOME IT IS THE TEST CASE OF THE IRON TRIANGLE'S REMAINING STRENGTH THE PLANE IS VERY EXPENSIVE SAYS ONE CONGRESSIONAL SOURCE IT'S CRASHED THREE TIMES IT'S JUST A TRANSPORT HELICOPTER THAT DOESN'T FIRE MISSILES OR DROP BOMBS BUT IT'S GOING TO COST 22 BILLION BUT OTHERS ARGUE THAT IF THE V22 WHICH IS BEING BUILT BY BOEING AND TEXTRON INC SURVIVES IT MAY BE THE INDUSTRY'S LAST HURRAH IN CONGRESS IT'S VERY DIFFICULT WHEN A LARGE NUMBER OF PEOPLE IN CONGRESS OUR FRIENDS THEY ARE OUR FRIENDS ARE WORKING AGAINST US LAMENTS STAN SIEGEL A VICE PRESIDENT OF THE AEROSPACE INDUSTRIES ASSOCIATION AS THE INDUSTRY'S POLITICAL CLOUT HAS FADED SO HAS ITS ECONOMIC SIGNIFICANCE THE ECONOMY'S CHANGED OBSERVES BARRY BLECHMAN PRESIDENT OF DEFENSE FORECASTS INC A WASHINGTON CONSULTING FIRM DEFENSE ISN'T AS ECONOMICALLY IMPORTANT IN MOST REGIONS AS IT USED TO BE PARTICULARLY IN THE INDUSTRIES THAT ARE ON THE CUTTING EDGE LIKE ELECTRONICS CONGRESSIONAL RELATIONS WITH THE DEFENSE INDUSTRY ARE LIKELY TO DETERIORATE FURTHER STEPHEN PETER ROSEN A HARVARD EXPERT ON MILITARY TECHNOLOGY EXPECTS THE INDUSTRY TO EDGE TOWARD BECOMING A GROUP OF REGULATED QUASIMONOPOLIES WITH ONE PRODUCER OF SUBMARINES ONE OF TANKS PERHAPS ONE OR TWO FOR FIGHTER PLANES THAT MAY MAKE INDUSTRIAL AND MILITARY SENSE BUT IT COULD ALSO SPARK NEW POLITICAL TROUBLES THESE COMPANIES WOULD PRODUCE HIGHTECH WEAPONS AT A VERY LOW RATE AND CONSEQUENTLY AT EXTRAORDINARILY HIGH COST LIKE UTILITIES THEY WOULD ENJOY GUARANTEED PROFITS BUT UNLIKE SAY ELECTRIC COMPANIES THEY WOULD FACE MUCH DEBATE OVER THE NEED FOR THEIR PRODUCTS PROF ROSEN WARNS IF THEY GO DOWN THAT ROAD DEFENSE COMPANIES ARE GOING TO BECOME MORE AND MORE THE TARGETS OF THE POLITICAL CLASSES AND COULD WIND UP VERY UNPOPULAR WITH THE AMERICAN PEOPLE 9305200030 930520 CLINTON'S EDUCATION PLAN CLEARS A HURDLE IN SENATE WASHINGTON PRESIDENT CLINTON'S EDUCATION PACKAGE OVERCAME A LEGISLATIVE HURDLE WHEN THE SENATE COMMITTEE ON LABOR AND HUMAN RESOURCES APPROVED IT IN A 143 VOTE THE 420 MILLION BILL ENTITLED GOALS 2000 WOULD WRITE SIX NATIONAL EDUCATION GOALS INTO LAW AND CREATE MODEL ACADEMIC AND TESTING STANDARDS FOR SCHOOLS IT ALSO WOULD SET UP MODEL OPPORTUNITYTOLEARN STANDARDS AIMED AT IMPROVING SCHOOL QUALITY THREE REPUBLICANS VOTED AGAINST THE LEGISLATION BECAUSE THEY FEARED IT WOULD GIVE THE FEDERAL GOVERNMENT TOO MUCH CONTROL OVER LOCAL SCHOOL DISTRICTS SEVERAL OF THE REPUBLICANS SUPPORTING THE BILL ALSO SAID THEY WORRIED THE BILL COULD LEAD TO FEDERAL MANDATES OR A NATIONAL CURRICULUM FOR SCHOOLS SOME DEMOCRATS VOICED THEIR CONCERN ABOUT INEQUITIES IN SCHOOL FINANCING IN THE US BUT SAID THEY WOULD ADDRESS THE ISSUE IN SEPARATE LEGISLATION THE PANEL ALSO REMOVED FROM THE PACKAGE A POTENTIALLY CONTROVERSIAL PROPOSAL TO CREATE MODEL OCCUPATIONAL SKILLS STANDARDS FOR JOBTRAINING PROGRAMS WHICH WILL BE DEALT WITH IN A SEPARATE BILL 9305200029 930520 WHO'S NEWS THIOKOL CORP THIOKOL CORP OGDEN UTAH JOHN R MYERS 56 YEARS OLD WAS NAMED CHIEF EXECUTIVE OF THIS JET PROPULSION COMPANY EFFECTIVE JULY 1 MR MYERS PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDS U EDWIN GARRISON WHO WILL RETIRE AS CEO BUT WILL REMAIN CHAIRMAN 9305200028 930520 POLITICS & POLICY MEXICO MOUNTS A MASSIVE LOBBYING CAMPAIGN TO SELL NORTH AMERICAN TRADE ACCORD IN US BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CRITICS OF THE NORTH AMERICAN FREE TRADE AGREEMENT CHARGE THAT UNDER THE TRADE ACCORD MEXICO WILL SNATCH US JOBS BUT MEXICO HAS ALREADY SET OFF A BOOM IN AT LEAST ONE US INDUSTRY LOBBYING MEXICO IS BANKROLLING A NATIONWIDE CAMPAIGN TO SELL THE TRADE ACCORD AND MEXICO TO AMERICANS CRAFTING AND CARRYING OUT THE CAMPAIGN IS AN IMPRESSVE LINEUP OF POLITICAL HEAVYWEIGHTS INCLUDING FORMER US TRADE REPRESENTATIVE WILLIAM BROCK TONEY ANAYA AND JERRY APODACA PAST GOVERNORS OF NEW MEXICO FORMER COMMERCE DEPARTMENT TRADE CHIEF ROBERT HERZSTEIN AND RETIRED NAVY SECRETARY EDWARD HIDALGO ACCORDING TO JUSTICE DEPARTMENT RECORDS MEXICO'S GOVERNMENT AND BUSINESS INTERESTS HAVE HIRED NO FEWER THAN 24 LOBBYING PUBLIC RELATIONS AND LAW FIRMS TO NEGOTIATE AND PROMOTE THE TRADE PACT AT AN ANNUAL COST OF ABOUT 15 MILLION THE CAMPAIGN HAS BEEN IN HIGH GEAR SINCE 1991 AND MAY RUN UP A TOTAL TAB OF 45 MILLION BY THE END OF THIS YEAR CHARLES LEWIS EXECUTIVE DIRECTOR OF THE CENTER FOR PUBLIC INTEGRITY WHICH TRACKS LOBBYING SAYS THE EFFORT MAY BE THE SINGLE BIGGEST FOREIGN LOBBYING CAMPAIGN EVER WITH MEXICO HIRING A LARGE NUMBER OF FORMER OFFICIALS HE SAYS IT CAN LOOK LIKE THEY'RE TRYING TO BUY THE TREATY AND THAT'S THE PROBLEM TRADE PACT SUPPORTERS ARE BEGINNING TO WORRY THAT THE BLITZ COULD BACKFIRE BY CREATING THE IMPRESSION THAT THE TRADE ACCORD IS MORE IN MEXICO'S INTEREST THAN IN THE US'S FOR HIS PART ROSS PEROT A TIRELESS ADVERSARY OF THE ACCORD RECENTLY LECTURED A SENATE COMMITTEE NEVER FORGET THE HUGE LOBBYING EFFORT THAT MEXICO IS MAKING IF THE FOREIGN LOBBYING RATHER THAN THE MERITS OF THE TRADE ACCORD CAPTURE THE LIMELIGHT IT COULD BE A DISASTER WARNS HARRY FREEMAN WHO LOBBIES ON TRADE ISSUES FOR BIG US COMPANIES MEANWHILE US SUPPORTERS OF THE ACCORD INCLUDING THE CLINTON ADMINISTRATION HAVE BEEN LESS WELLORGANIZED AND US OPPONENTS LED BY LABOR UNIONS AND ENVIRONMENTAL GROUPS ARE MAKING AN IMPACT BY ARGUING THAT THE PACT WOULD COST US JOBS AND UNDERMINE ENVIRONMENTAL STANDARDS THE ACCORD WOULD PHASE OUT TARIFFS AMONG THE US CANADA AND MEXICO OVER 15 YEARS MANY ECONOMISTS PROJECT ALL THREE COUNTRIES WOULD GAIN FROM THE ACCORD BUT MEXICO SHOULD GAIN THE MOST BECAUSE THE PACT GUARANTEES CONTINUED ACCESS TO THE HUGE US MARKET AND ENCOURAGES INVESTMENT SOUTH OF THE BORDER HERMAN VON BERTRAB AN URBANE MEXICAN BUSINESSMAN WHO RUNS THE MEXICAN EMBASSY'S OPERATIONS IN SUPPORT OF THE ACCORD ARRANGES TO WORK THE POWER CORRIDORS IN WASHINGTON WHILE AT THE SAME TIME BUILDING A PROACCORD HISPANIC BLOC AROUND THE COUNTRY US PUBLIC RELATIONS FIRMS HELP TO LINE UP SPEAKING ENGAGEMENTS FOR MEXICAN OFFICIALS THROUGHOUT THE US THE LAW FIRMS ANALYZE SPECIFICS IN THE TRADE DEAL AND ITS VARIOUS SIDE AGREEMENTS AND THE FORMER GOVERNMENT OFFICIALS MAP THE LARGER STRATEGY CONGRESSIONAL LOBBYISTS WORK CAPITOL HILL IS MEXICO OVERDOING IT MR VON BERTRAB DOESN'T THINK SO WE GAINED AN UNDERSTANDING OF HOW THIS SYSTEM WORKED HE SAYS LOBBYISTS ARE A NECESSARY EVIL IN THE US EVERY MONDAY MEXICO'S FIVE MAIN CONGRESSIONAL LOBBYING FIRMS MEET AT MR VON BERTRAB'S OFFICE TO DIVVY UP WORK JOSEPH O'NEILL A FORMER SENATE AIDE TO TREASURY SECRETARY LLOYD BENTSEN AND GABRIEL GUERRAMONDRAGON WHO WAS A CLINTON TRANSITION OFFICIAL FOCUS ON THE DEMOCRATS THE FIRMS LED BY FORMER NIXON TREASURY DEPARTMENT AIDE CHARLS WALKER AND FORMER GOP SENATE AIDE HOWARD LIEBENGOOD CONCENTRATE ON REPUBLICANS TO BOLSTER LINKS TO DEMOCRATS AFTER THE ELECTION THE MEXICANS JUST HIRED CHRISTOPHER KIP O'NEILL THE SON OF FORMER HOUSE SPEAKER THOMAS P TIP O'NEILL ANOTHER CURRENT GOAL IS TO BUILD CONTACTS WITH THE 110 NEW HOUSE MEMBERS MANY OF WHOM CAMPAIGNED AGAINST THE TRADE ACCORD THE LOBBYISTS ARE NOTHING IF NOT PERSISTENT IN THE FIRST HALF OF LAST YEAR FOR EXAMPLE ONE MEXICAN LOBBYIST FORMER REP WILLIAM RATCHFORD CONFERRED 15 TIMES WITH JOHN SCHEIBEL AN AIDE TO REP SAM GEJDENSON A CONNECTICUT DEMOCRAT WHO HEADS A TRADE SUBCOMMITTEE JUSTICE DEPARTMENT RECORDS SHOW BUT MR RATCHFORD IS NO LONGER LOBBYING ON THE ISSUE INSTEAD HE'S TAKEN A JOB IN THE CLINTON ADMINISTRATION AS LOBBYIST FOR THE GENERAL SERVICES ADMINISTRATION INDEED MEXICO HAS BECOME SO TAKEN WITH USSTYLE LOBBYING THAT A MEXICAN BUSINESS ALLIANCE CALLED COECE PAID A FORMER US TRADE OFFICIAL TIM BENNETT TO LOBBY MEXICO'S NEGOTIATORS DURING NEGOTIATIONS WITH THE US ON THE ACCORD THREE YEARS BEFORE SIGNING UP WITH COECE MR BENNETT WAS THE US TRADE REPRESENTATIVE'S CHIEF MEXICO NEGOTIATOR MEXICO HAS APPOINTED FOUR FORMER US OFFICIALS AS SENIOR ADVISERS TO WORK OUT STRATEGY MR BROCK THE FORMER US TRADE REPRESENTATIVE WHO ALSO HAS BEEN A US SENATOR AND CHAIRMAN OF THE REPUBLICAN NATIONAL COMMITTEE MR HERZSTEIN THE COMMERCE TRADE OFFICIAL WHO IS NOW A PARTNER IN THE MEXICANS' MAIN LAW FIRM SHEARMAN & STERLING MR WALKER THE FORMER TREASURY AIDE AND THOMAS BELL A SENATE AIDE TO MR BROCK WHO NOW IS A SENIOR OFFICIAL AT MEXICO'S MAIN PUBLIC RELATIONS FIRM BURSONMARSTELLER MEXICAN OFFICIALS EXPECT THESE WISE MEN TO TELL THEM WHAT TO DO ABOUT MR PEROT'S ATTACKS ON THE ACCORD AND LOBBYISTS SHOULD WE COUNTERATTACK OR JUST LET IT GO FRETS ONE MEXICAN TRADE OFFICIAL KEEP COOL MR BROCK COUNSELS YOU CAN'T RESPOND TO SINGLE INDIVIDUALS OR SINGLE GROUPS INSTEAD HE SAYS MEXICO MUST SHOW SKEPTICAL AMERICANS IT HAS PUT ITS HOUSE IN ORDER AND IS RUN BY A MARKETORIENTED OPENMINDED TEAM OF PEOPLE TO THAT END COECE ESTIMATES IT HAS TREATED 76 CONGRESSIONAL AIDES TO MEXICAN JUNKETS TO MEET WITH GOVERNMENT AND BUSINESS LEADERS OTHER MEXICAN LOBBYISTS HAVE ARRANGED TOURS FOR LAWMAKERS AND US BUSINESS OFFICIALS THAT'S HELPED TO ERASE MEXICO'S IMAGE AS A SOMNOLENT SLOWMOVING BURRITOVILLE SAYS MR BENNETT THE COECE LOBBYIST COMPARED WITH MEXICO'S LOBBYING DRIVE US BUSINESS EFFORTS SEEM LACKLUSTER MEMBERS OF THE BUSINESS ROUNDTABLE HAVE RAISED ABOUT 2 MILLION AND SET UP A GROUP CALLED USANAFTA WHICH CLAIMS 1300 MEMBERS MANY OF THEM SMALL AND MEDIUMSIZE BUSINESSES BUT THAT NUMBER OVERSTATES THE GROUP'S STRENGTH TO JOIN USANAFTA COMPANIES SIMPLY FILL OUT A FORM NO MONEY OR EFFORT IS REQUIRED YOU CAN'T EXPECT A GUNBLAZING 50STATE EFFORT AT THIS POINT SAYS SANDRA MASUR A TRADE OFFICIAL AT EASTMAN KODAK CO WHO HEADS USANAFTA DEMOCRATIC SEN BILL BRADLEY OF NEW JERSEY A STAUNCH SUPPORTER OF THE ACCORD RECENTLY SENT OUT A LETTER ON USANAFTA STATIONERY ASKING COMPANIES TO LET ME KNOW THAT YOU ARE WILLING TO MAKE THE ACCORD A HIGH PRIORITY IF A VOTE ON THE PACT WERE HELD TODAY HE WARNED WE WOULD LOSE MEANWHILE THE MEXICAN LOBBY SEEMS PERVASIVE MR ANAYA A FORMER NEW MEXICO GOVERNOR WHO'S A FRIEND OF JESSE JACKSON TRIES TO WOO UNIONISTS AND ENVIRONMENTALISTS MR APODACA ANOTHER FORMER NEW MEXICO GOVERNOR SETS UP SEMINARS WITH HISPANIC GROUPS FORMER NAVY SECRETARY HIDALGO MEETS WITH MAINSTREAM HISPANIC GROUPS HISPANIC PUBLIC RELATIONS FIRMS IN FLORIDA TEXAS AND CALIFORNIA ARE HIRED TO BURNISH MEXICO'S IMAGE THERE LESLIE PANTIN WHO RUNS THE MIAMI OPERATIONS SAYS HE IS ORGANIZING A TRIP TO MEXICO NEXT MONTH FOR 60 FLORIDA GOVERNMENT AND BUSINESS LEADERS INCLUDING GOV LAWTON CHILES RODNEY ELLIS A BLACK TEXAS LAWMAKER AND FORMER HOUSE AIDE IS HIRED TO MAKE OVERTURES TO BLACKS INCLUDING TRIPS TO MEXICO FOR BLACK LEADERS SUCH AS AGRICULTURE SECRETARY MIKE ESPY INDEED NO OPPORTUNITY FOR INFLUENCE SEEMS TOO REMOTE FOR MEXICO'S LEGION OF LOBBYISTS KATHLEEN ANN GRIFFITH A TRADE ACCORD LOBBYIST PAID TO WOO ENVIRONMENTALISTS EVEN PUBLISHED A PROACCORD PIECE IN THE UNIVERSITY OF CALIFORNIA'S JOURNAL OF ENVIRONMENT AND DEVELOPMENT WITH A CIRCULATION OF 1500 GREGORY N RACZ CONTRIBUTED TO THIS ARTICLE 9305200027 930520 BUSINESS BRIEF WR GRACE & CO COMPANY EXTENDS ITS OFFER FOR HOME INTENSIVE STOCK WR GRACE & CO SAID IT EXTENDED ITS OFFER TO PURCHASE THE SHARES OUTSTANDING OF HOME INTENSIVE CARE INC UNTIL JUNE 1 THE 660ASHARE OFFER HAD BEEN SET TO EXPIRE LAST NIGHT WR GRACE A SPECIALTY CHEMICALS COMPANY BASED IN BOCA RATON FLA SAID 106 MILLION SHARES OF HOME INTENSIVE CARE HAD BEEN TENDERED AS OF THE CLOSE OF BUSINESS YESTERDAY OR ABOUT 62 OF THE TOTAL SHARES OUTSTANDING THE COMPANY SAID EXTENDING THE TENDER OFFER WOULD ALLOW IT TO GAIN ADDITIONAL SHARES AND TO MEET THE 15DAY ANTITRUST WAITING PERIOD WHICH ENDS TUESDAY HOME INTENSIVE CARE BASED IN MIAMI IS A PROVIDER OF INFUSION THERAPY AND DIALYSIS SERVICES IT REACHED A DEFINITIVE AGREEMENT LAST MONTH TO BE ACQUIRED BY WR GRACE 9305200026 930520 GLUT OF GRADUATES LETS RECRUITERS PICK ONLY THE BEST BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL WANTED BILINGUAL COLLEGE GRADUATES WITH TOP GRADES MULTIPLE INTERNSHIPS ONE OR MORE YEARS OF FULLTIME WORK DEMONSTRATED LEADERSHIP TEAMWORK AND CUSTOMER SERVICE SKILLS EXPERIENCE LIVING ABROAD MUST BE COMPUTER LITERATE FLUENCY IN SPANISH OR MANDARIN A PLUS SOUND LIKE THE RESUME OF A SUPERSTAR FORTUNE 500 HIRING EXECUTIVES SAY THESE SPECS ARE FAST BECOMING THE PRICE OF ENTRY INTO A GLOBAL JOB MARKET A COLLEGE DIPLOMA ALONE ONCE THE CORE OF A NEW JOB CANDIDATE'S PROFILE IS NOW REGARDED ONLY AS A NECESSARY FOOTNOTE WITHOUT WORK EXPERIENCE AND OTHER EXTRAS TO BE HONEST IT REALLY IS LIKE A HIGH SCHOOL DEGREE SAYS KEITH COPELAND MANAGER OF EMPLOYMENT FOR APPLE COMPUTER INC COMPANIES CAN AFFORD TO BE CHOOSY FROM 1988 TO 1992 THE NUMBER OF GRADUATING COLLEGE SENIORS GREW 11 TIMES FASTER THAN THE NUMBER OF FULLTIME NONFARM JOBS ACCORDING TO THE NATIONAL CENTER FOR EMPLOYMENT STATISTICS AND THE BUREAU OF LABOR STATISTICS A FEW COMPANIES ARE HIRING MORE COLLEGE GRADUATES FORD MOTOR CO FOR INSTANCE WILL HIRE 2200 GRADUATING SENIORS THIS YEAR UP FROM 1960 LAST YEAR GENERAL ELECTRIC CO WILL HIRE 500 UP 5 FOR EVERY OPENING THERE'S A STACK OF APPLICATIONS APPLE RECEIVED 11000 RESUMES FOR 100 ENTRY LEVEL JOBS AND 300 SUMMER INTERNSHIPS LAST YEAR FORD GETS SIX APPLICANTS FOR EACH MANAGEMENT TRAINEE SLOT THAT MEANS COMPANIES CAN NOW DEMAND SKILLS THEY DIDN'T EVEN HOPE FOR IN THE PAST SOME ARE LOOKING FOR BETTER GRADES WHILE OTHERS EXPANDING OVERSEAS AND SELLING TO MORE DIVERSE CUSTOMERS AT HOME ARE FOCUSING ON CANDIDATES WHO ARE FLUENT IN AT LEAST ONE FOREIGN LANGUAGE GENERAL ELECTRIC WHICH EXPOSES NEW HIRES TO OVERSEAS SUPPLIERS FROM THE DAY THEY START WORK SAYS 30 OF ITS COLLEGE RECRUITS SPEAK FOREIGN LANGUAGES THAT FIGURE MAY INCREASE TO 70 IN FIVE YEARS THAT'S A LOUD MESSAGE TO ACADEMIA AND TO STUDENTS ABOUT WHAT ARE ELECTIVES AND NOT ELECTIVES SAYS GENE SKOGG THE COMPANY'S MANAGER OF UNIVERSITY RECRUITING AND TECHNICAL ENTRY PROGRAMS BUT LANGUAGE SKILLS ALONE AREN'T ENOUGH MR SKOGG SAYS HE NOW LOOKS FOR STUDENTS WHO HAVE LIVED ABROAD BECAUSE GLOBAL ORIENTATION IS A CLEAR PLUS THE PROSPECT OF THE NORTH AMERICAN FREE TRADE AGREEMENT IS UPPING THE ANTE FORD MOTOR RECENTLY SET UP AN ENGINEERING EXCHANGE PROGRAM BETWEEN THE UNIVERSITY OF DETROIT AND A UNIVERSITY IN MONTERREY MEXICO ENGINEERS ATTEND THEIR COUNTRY'S UNIVERSITY FOR TWO YEARS SWITCH IN THE THIRD YEAR THEN RETURN TO THEIR ORIGINAL SCHOOLS TO GRADUATE DURING THEIR STUDIES THEY WORK AT FORD PLANTS IN THE US AND MEXICO THE FIRST CLASS SEVEN US STUDENTS AND 10 MEXICAN STUDENTS GRADUATES IN 1997 FORD HOPES TO HIRE EVERY ONE BESIDES GLOBAL EXPERIENCE COMPANIES ARE ASKING COLLEGE RECRUITS TO BRING REAL WORK EXPERIENCE TO THE TABLE WE PRETTY MUCH DON'T HIRE ANYONE THAT HAS ONLY SUMMER WORK SAYS MR COPELAND OF APPLE INSTEAD THE COMPUTER COMPANY LOOKS FOR THOSE WHO WORKED PART TIME THROUGH SCHOOL TOOK TIME OFF TO GAIN WORK EXPERIENCE OR AT LEAST DID AN EXTENDED INTERNSHIP AT GENERAL ELECTRIC MORE THAN 80 OF LAST YEAR'S 500 MANAGEMENT TRAINEE HIRES HAD WORK EXPERIENCE DIRECTLY RELATED TO THEIR CAREERS SAYS MR SKOGG COMPANIES SAY THEY'RE ALSO TRYING TO IDENTIFY TOP CANDIDATES EARLY IN THEIR COLLEGE CAREERS COMING IN FOR A HALFHOUR INTERVIEW IN THE SENIOR YEAR IS LUDICROUS SAYS MR SKOGG WE'RE WORKING WITH STUDENT ORGANIZATIONS SO WE KNOW WHO THE TOP STUDENTS ON CAMPUS ARE 9305200025 930520 HOLNAM BUYS TEXAS PLANT DUNDEE MICH HOLNAM INC A CEMENT SUPPLIER SAID IT COMPLETED THE 91 MILLION ACQUISITION OF A CEMENT MANUFACTURING PLANT IN MIDLOTHIAN TEXAS FROM BOXCROW CEMENT CO 9305200024 930520 ECONOMY CLINTON TEAM TO SUGGEST IMPORT GOALS FOR JAPAN AS TRADE TALKS APPROACH BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US PLANS TO UNVEIL A NEW STRATEGY IN TRADE TALKS WITH JAPAN WITH THE GOALS OF INCREASING JAPANESE PURCHASES OF FOREIGN GOODS AND SERVICES AS WELL AS DENTING JAPAN'S LARGE TRADE SURPLUS IN PREPARATION FOR THE TALKS THAT START NEXT THURSDAY IN TOKYO CLINTON ADMINISTRATION OFFICIALS SAID AN INTERAGENCY WORKING GROUP HAS PREPARED A REPORT FOR PRESIDENT CLINTON ON JAPAN TRADE POLICY THAT REPORT SUGGESTS POSSIBLE QUANTITATIVE GOALS THE US COULD USE TO MEASURE WHETHER JAPAN IS LIVING UP TO ANY AGREEMENTS STRUCK UNDER THE TRADE TALKS OFFICIALS STRESSED THAT MR CLINTON MUST SIGN OFF ON THE RECOMMENDATIONS BEFORE THE TRIP IS FINALIZED THEY ADDED THAT THE DATE OF THE TALKS COULD SLIP INTO THE FOLLOWING WEEK US OFFICIALS SAID THEY HAVE TWIN GOALS GETTING JAPAN TO CUT ITS CURRENTACCOUNT SURPLUS BY MORE THAN HALF AND INCREASE ITS IMPORTS OF MANUFACTURED GOODS BY ONETHIRD IN 1994 JAPAN'S CURRENT ACCOUNT SURPLUS IS EXPECTED TO REACH 160 BILLION OR 4 OF ITS GROSS DOMESTIC PRODUCT THE US ARGUES THAT THIS LEVEL SHOULD FALL TO ABOUT 15 OF GDP THE CURRENT ACCOUNT IS A BROAD MEASURE OF A COUNTRY'S TRADE IN BOTH GOODS AND SERVICES JAPAN'S IMPORTS OF MANUFACTURED GOODS CURRENTLY EQUAL ABOUT 3 OF ITS GDP THE US WANTS THAT LEVEL TO REACH 4 JAPANESE OFFICIALS REPEATEDLY HAVE TOLD US OFFICIALS THAT THEY DON'T WANT TO SET QUANTITATIVE TARGETS SO THE US MAY AGREE TO PHRASE ITS GOALS IN MORE GENERAL TERMS IT WOULD BE THE FIRST TIME THE US MAKES A CONCERTED EFFORT TO USE ALL ITS TRADE LEVERS AGAINST JAPAN EMPLOYING TARGETS FOR TRADE BALANCES WITH NEGOTIATIONS ON VARIOUS INDUSTRIES AND TRADE PRACTICES IN THE INITIAL MEETING HOWEVER THE US PLANS TO SIMPLY PRESENT JAPAN WITH A NEGOTIATING AGENDA OF THE INDUSTRIES FROM WHICH IT WANTS JAPAN TO INCREASE IMPORTS AS WELL AS THE ECONOMIC PRACTICES IT WANTS JAPAN TO LIBERALIZE ONCE THE TWO SIDES AGREE ON AN AGENDA THE US WOULD PROPOSE QUANTITATIVE GOALS DURING SUBSEQUENT NEGOTIATIONS WHICH ARE EXPECTED TO LAST BETWEEN SIX MONTHS AND ONE YEAR ACCORDING TO A PLAN APPROVED LAST MONTH BY PRESIDENT CLINTON AND JAPANESE PRIME MINISTER KIICHI MIYAZAWA THE TWO NATIONS WOULD AGREE ON A NEGOTIATING AGENDA BY JULY 7 WHEN THE MAJOR INDUSTRIALIZED COUNTRIES CONVENE IN TOKYO FOR AN ECONOMIC SUMMIT AMONG THE US OFFICIALS WHO MAY TRAVEL TO JAPAN ARE DEPUTY TREASURY SECRETARY ROGER ALTMAN DEPUTY US TRADE REPRESENTATIVE CHARLENE BARSHEFSKY UNDERSECRETARY OF STATE JOAN SPERO AND BOWMAN CUTTER DEPUTY CHIEF OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL WHITE HOUSE CHIEF ECONOMIST LAURA TYSON MAY ALSO MAKE THE TRIP ADMINISTRATION OFFICIALS SAID THOSE FIVE PLUS DEPUTY COMMERCE SECRETARYDESIGNATE JOHN ROLLWAGEN HAVE LED THE SESSIONS ON JAPAN TRADE STRATEGY MR ROLLWAGEN WHOSE CONFIRMATION IS BEING HELD UP UNTIL A GOVERNMENT PROBE OVER INSIDER TRADING IS COMPLETED ISN'T EXPECTED TO MAKE THE TRIP UNDER THE EVOLVING PLAN FOR JAPAN THE US DIVIDES INDUSTRIES AND TRADE PRACTICES INTO FIVE BASIC CATEGORIES WHICH ADMINISTRATION OFFICIALS REFER TO AS BASKETS GOVERNMENT PROCUREMENT COMPLIANCE WITH PAST AGREEMENTS REGULATORY MATTERS AUTO PARTS AND FOREIGN INVESTMENT IN JAPAN EACH OF THOSE BASKETS MAY COVER A BROAD RANGE OF TOPICS FOR INSTANCE UNDER THE COMPLIANCE CATEGORY THE US ESTIMATES IT HAS 27 EXISTING AGREEMENTS WITH JAPAN REGULATORY MATTERS CAN INCLUDE SALES OF FOREIGN MEDICAL EQUIPMENT INTO JAPAN AS WELL AS ANTITRUST PRACTICES THERE IN PRIOR NEGOTIATIONS THE US HAS SET OUT SPECIFIC INDUSTRIES FOR NEGOTIATIONS SUCH AS SEMICONDUCTORS OR TELECOMMUNICATIONS BUT TRADE OFFICIALS THINK THEY MAY BE ABLE TO MAKE MORE PROGRESS BY GROUPING INDUSTRIES WITH COMMON PROBLEMS THE ADMINISTRATION ALSO IS TRYING TO FIGURE OUT HOW TO MEASURE SUCCESS IN VARIOUS INDUSTRIES ESPECIALLY GIVEN THAT JAPAN SAYS IT WON'T AGREE TO MARKETSHARE TARGETS SUCH AS THOSE THAT GOVERN A SEMICONDUCTOR AGREEMENT IN THE FINANCIALSERVICES AREA THE US IS CONSIDERING MEASURING SUCH FACTORS AS THE NUMBERS OF LICENSES GRANTED TO FOREIGN MUTUALFUND MANAGEMENT COMPANIES DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9305200023 930520 FLORIDA MORATORIUM COULD DELAY ALLSTATE PLAN TO DROP POLICIES FLORIDA IMPOSED A 90DAY MORATORIUM ON THE CANCELLATION OF HOMEOWNERS INSURANCE POLICIES RAISING QUESTIONS ABOUT WHETHER ALLSTATE INSURANCE CO WILL FACE DELAYS WITH ITS PLAN TO ALLOW 300000 POLICIES TO LAPSE STARTING IN SEPTEMBER ALLSTATE A UNIT OF CHICAGOBASED SEARS ROEBUCK CO WANTS TO REDUCE ITS EXPOSURE TO A FLORIDA DISASTER TO NO MORE THAN 1 BILLION THE COMPANY HAD A PRETAX LOSS OF 25 BILLION ON LAST AUGUST'S HURRICANE ANDREW IN ADDITION TO LETTING POLICIES LAPSE ALLSTATE PLANS TO RAISE PRICES OTHER INSURERS HAVE ALSO ANNOUNCED PLANS TO LIMIT NEW BUSINESS IN THE STATE FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER SAID THE THREEMONTH MORATORIUM IS DESIGNED TO GIVE FLORIDA LAWMAKERS TIME TO CONSIDER CREATION OF A FUND TO SPREAD THE LOSSES INSURERS COULD SUFFER IN ANY FUTURE HURRICANES THE EFFORT MR GALLAGHER SAID WOULD MAKE IT EASIER FOR ALLSTATE AND OTHER INSURERS TO MAINTAIN THEIR PRESENCE IN THE STATE BUT AM BEST ANALYST JOHN SNYDER SAID FLORIDA MIGHT NOT HAVE THE LEGAL STANDING TO ENFORCE THE MORATORIUM ALLSTATE'S DECISION TO LET POLICIES LAPSE HAS HURT ITS PUBLIC IMAGE IN FLORIDA AND COMES AT A TIME WHEN THE COMPANY IS GEARING UP TO SELL A 20 STAKE TO THE PUBLIC IN A 21 BILLION OFFERING BECAUSE OF THE EARLY JUNE OFFERING ALLSTATE IS RESTRICTED IN ITS PUBLIC COMMENTS BUT A SPOKESMAN SAID THE COMPANY IS EVALUATING THE SITUATION IN FLORIDA THIS IS A SERIOUS PUBLIC ISSUE SAID BALESTRA CAPITAL ANALYST CHARLES RONSON THEY'RE GOING TO HAVE TO REACH AN AGREEMENT WITH THE STATE BUT HE BELIEVES THE STOCK OFFERING IS STILL ATTRACTIVE AND WILL SUCCEED 9305200022 930520 RETAILING BRIBERY CLAIMS AT FINGERHUT ARE INVESTIGATED BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FEDERAL GRAND JURY IS INVESTIGATING INVENTORY PRACTICES AND ALLEGED COMMERCIAL BRIBERY AT CATALOG MARKETER FINGERHUT COS IN A CASE RAISING SOME OF THE SAME ISSUES AS THE SCANDAL ENGULFING ANOTHER DIRECT MARKETER HOME SHOPPING NETWORK INC THE GRAND JURY IN MINNEAPOLIS IS FOCUSING ON THE PURCHASING PRACTICES OF FINGERHUT IT IS LOOKING INTO ALLEGATIONS THAT THE COMPANY'S FORMER CHIEF JEWELRY BUYER PLACED ORDERS WITH VENDORS THAT MADE CASH PAYMENTS TO HIMSELF AND HIS WIFE THE INTERNAL REVENUE SERVICE AND THE FEDERAL BUREAU OF INVESTIGATION ARE ALSO INVESTIGATING THE CASE INVOLVING FINGERHUT ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER FINGERHUT'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THEODORE DEIKEL CONFIRMED THE GRAND JURY INVESTIGATION YESTERDAY JOHN ELLINGBOE GENERAL COUNSEL SAID THE COMPANY HAS HANDED OVER TRAVEL AND EMPLOYMENT RECORDS OF ITS FORMER CHIEF JEWELRY BUYER IN RESPONSE TO A GRAND JURY SUBPOENA THE FEDERAL INVESTIGATION WAS SPARKED IN PART BY AN INTERNAL PROBE THAT FINGERHUT ITSELF CONDUCTED LAST YEAR THE MINNETONKA MINN COMPANY BEGAN LOOKING INTO THE MATTER AFTER EACH OF ITS DIRECTORS WERE MAILED AN ANONYMOUS LETTER ALLEGING PURCHASING IMPROPRIETIES THE INTERNAL INQUIRY CULMINATED LAST WEEK WITH FINGERHUT FILING A FEDERALCOURT LAWSUIT AGAINST THE FORMER JEWELRY BUYER JOHN ZAROGOZA AND AGAINST A JEWELRY VENDOR AND OTHERS MR ZAROGOZA WHOM THE COMPANY FIRED LAST YEAR COULDN'T BE REACHED FOR COMMENT YESTERDAY BUT MICHAEL UNGER A LAWYER FOR MR ZAROGOZA DENIED THE ALLEGATIONS HE ADDED THAT HIS CLIENT HASN'T BEEN CALLED BEFORE THE GRAND JURY FBI AND IRS AGENTS INVOLVED IN THE CASE COULDN'T BE REACHED FOR COMMENT BUT WHILE THE COMPANY APPEARS TO BE NARROWING THE FOCUS OF ITS PROBE TO THE DEALINGS OF MR ZAROGOZA INVESTIGATORS INDICATED PRIVATELY THAT THEY ARE LOOKING INTO A BROADER SCOPE OF ACTIVITIES INCLUDING ALLEGED INVENTORY MANIPULATION AT THE COMPANY AS WELL AS ACTIONS OF OTHER FINGERHUT EXECUTIVES IN PARTICULAR AUTHORITIES ARE INTERESTED IN WHAT ROLE IF ANY MR ZAROGOZA'S BOSS GREGORY D LERMAN EXECUTIVE VICE PRESIDENT OF MERCHANDISING PLAYED IN THE MATTERS MR LERMAN IS THE TOP EXECUTIVE OVERSEEING ALL COMPANY PURCHASING AND COULDN'T BE REACHED FOR COMMENT YESTERDAY FINGERHUT'S GENERAL COUNSEL MR ELLINGBOE SAID THE COMPANY HASN'T BEEN INFORMED THAT MR LERMAN IS A SUBJECT OR TARGET OF ANY FEDERAL INQUIRY BUT THAT AUTHORITIES COULD BE INTERESTED IN INTERVIEWING MR LERMAN BECAUSE PURCHASING IS HIS AREA FINGERHUT'S OWN INQUIRY DISCOVERED PROBLEMS IN THE INVENTORY AREA REGARDING THE DISPOSAL OF MERCHANDISE THAT DIDN'T SELL WELL ACCORDING TO THE PEOPLE FAMILIAR WITH THE MATTER THE COMPANY IN SOME CASES WOULD SELL SUCH GOODS BACK TO THE SUPPLIERS AT THE ORIGINAL COST BUT LATER WOULD REPURCHASE THE SAME ITEMS AT A HIGHER PRICE ACCORDING TO THESE PEOPLE THE PRACTICE WHICH IS SAID TO BE UNDER SCRUTINY BY INVESTIGATORS APPARENTLY ALLOWED FOR LOWER INVENTORY STATEMENTS FOR DIRECT MARKETERS SUCH AS FINGERHUT CONTROLLING INVENTORY IS A MAJOR PROBLEM MR ELLINGBOE THE GENERAL COUNSEL WOULDN'T COMMENT ON THE SCOPE OF THE INTERNAL INVESTIGATION AND SAID HE DOESN'T KNOW THE SCOPE OF THE GRAND JURY PROBE FOR MOST OF THIS YEAR HOME SHOPPING NETWORK HAS BEEN THE SUBJECT OF SIMILAR ALLEGATIONS OF COMMERCIAL BRIBES AND KICKBACKS AS WELL AS OTHER IMPROPRIETIES THAT HAVEN'T BEEN CLAIMED IN THE FINGERHUT AFFAIR A FEDERAL GRAND JURY IN TAMPA FLA IS INVESTIGATING THE VARIOUS CHARGES ALTHOUGH INVESTIGATORS WON'T PROVIDE NAMES SOME OF THE VENDORS JEWELRY SUPPLIERS IN PARTICULAR IN THE HOME SHOPPING CONTROVERSY ALSO SELL GOODS TO FINGERHUT IN THE LAWSUIT THAT FINGERHUT FILED AGAINST MR ZAROGOZA IN US DISTRICT COURT IN MINNEAPOLIS LAST WEEK THE COMPANY ACCUSES HIM OF ARRANGING TO BUY JEWELRY AND UNFINISHED GOLD FROM VENDOR AH JEWELRY IMPORTS INC AND ITS PRINCIPAL OWNER ANNA HITTER AT INFLATED PRICES IN EXCHANGE THE SUIT ALLEGES MS HITTER AND HER COMPANY PAID 10000 AND OTHER CONSIDERATIONS TO MR ZAROGOZA AND HIS WIFE LORIS LENA KLUEMPKE THIS ARRANGEMENT DID DEFRAUD FINGERHUT THE SUIT CHARGES MR ZAROGOZA AND MS KLUEMPKE HAVE AN UNLISTED PHONE HOME NUMBER IN MAPLE GROVE MINN AND COULDN'T BE REACHED FOR COMMENT MS HITTER OF AH JEWELRY CONTACTED AT HER BEVERLY HILLS CALIF OFFICE SAID I DON'T KNOW ANYTHING ABOUT IT THE LAWSUIT OR THE CHARGES FINGERHUT ALSO ALLEGED IN ITS SUIT THAT MS KLUEMPKE RECEIVED IMPROPER COMMISSION PAYMENTS AS A SALES REPRESENTATIVE FOR OTHER FINGERHUT JEWELRY VENDORS THAT SUPPLIED MERCHANDISE ON UNFAVORABLE TERMS THOSE VENDORS WEREN'T NAMED IN THE SUIT WITH ANNUAL SALES OF MORE THAN 16 BILLION FINGERHUT IS ONE OF THE NATION'S LARGEST DIRECT MARKETERS PRIMERICA CORP A FINANCIAL SERVICES CONCERN TOOK FINGERHUT PUBLIC IN 1990 AND HAS BEEN SELLING OFF ITS STAKE PIECEMEAL SINCE THEN SHEDDING ITS REMAINING SHARES LAST YEAR FINGERHUT HAS LINKS TO THE TELEVISION HOME SHOPPING INDUSTRY THROUGH ITS CHAIRMAN MR DEIKEL IN THE MID1980S HE AND MINNEAPOLIS INVESTOR IRWIN JACOBS WERE MAJORITY OWNERS OF COMB A MERCHANDISE CLOSEOUT CONCERN IT JOINED CABLE GIANT TELECOMMUNICATIONS INC IN A TV HOME SHOPPING VENTURE POSING THE FIRST MAJOR RIVAL TO HOME SHOPPING NETWORK INDEED CVN AS IT WAS KNOWN WAS LATER ACQUIRED BY QVC NETWORK INC BOTH QVC AND HOME SHOPPING ARE CONTROLLED BY TCI SPINOFF LIBERTY MEDIA CORP MR ZAROGOZA NOW A CENTRAL FIGURE IN THE FINGERHUT CONTROVERSY HAD WORKED AT CVN AS ITS CHIEF JEWELRY BUYER AND AH JEWELRY WAS A MAJOR VENDOR TO CVN FINGERHUT SAID IN ITS LAWSUIT FINGERHUT STOCK ROSE 125 OR 3 TO CLOSE AT 43125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9305200021 930520 BUSINESS BRIEF DELL'S SHARES FALL AS PC PRICE WAR DELAY IN RELEASING RESULTS FAN FEARS SHARES OF DELL COMPUTER CORP DROPPED NEARLY 10 AS WALL STREET FRETTED THAT CONTINUING CUTTHROAT PRICING IN THE PERSONAL COMPUTER BUSINESS COULD DENT THE COMPANY'S FISCAL FIRSTQUARTER EARNINGS SHARES OF THE MAILORDER PC COMPANY'S STOCK FELL 325 TO 3075 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY INVESTORS' FEARS WERE FED BY A DELAY IN THE RELEASE OF DELL'S FINANCIAL RESULTS WHICH MANY ANALYSTS HAD EXPECTED TO COME TODAY A DELL SPOKESWOMAN WHO DESCRIBED THE DELAY AS ROUTINE SAID THE COMPANY'S RESULTS WILL INSTEAD BE OUT ON TUESDAY THE DROP IN DELL'S STOCK FOLLOWED NEWS THAT GOLDMAN SACHS & CO IN AN ADVISORY TO ITS CLIENTS LOWERED ITS ESTIMATE OF DELL'S EARNINGS FOR THE QUARTER ENDED MAY 2 THE BROKERAGE FIRM CITING CURRENCY FLUCTUATIONS AND MARGIN PRESSURES STEMMING FROM A PC PRICE WAR CUT ITS FISCAL FIRSTQUARTER ESTIMATE TO 66 CENTS A SHARE FROM 76 CENTS ACCORDING TO THE DELL SPOKESWOMAN DANIEL BENTON GOLDMAN'S COMPUTER ANALYST WOULDN'T RETURN TELEPHONE CALLS DURING LAST YEAR'S FIRST QUARTER THE AUSTIN TEXAS COMPANY REPORTED NET INCOME OF 198 MILLION OR 52 CENTS A SHARE ON 3661 MILLION IN SALES MOST ANALYSTS NOW EXPECT DELL TO EARN BETWEEN 65 CENTS AND 75 CENTS A SHARE ON EXPECTED SALES OF MORE THAN 700 MILLION FOR MONTHS DELL HAS BEEN WARNING WALL STREET THAT ITS PROFIT MARGINS COULD SLIP AS PC PRICES CONTINUE TO FALL THE COMPANY WHICH ONCE HELD AS NEARLY SACRED ITS 5 NET MARGIN IS EXPECTED TO REPORT A NET PROFIT MARGIN OF ABOUT 39 IN THE MOST RECENT QUARTER ANALYSTS SAID EVERYBODY ALWAYS GETS CONCERNED WHEN THERE'S A TOUGH QUARTER SAID JOHN C MAXWELL A TECHNOLOGY ANALYST AT SOUNDVIEW FINANCIAL GROUP IN STAMFORD CONN PEOPLE ARE NOW CONCERNED ABOUT THE COMPANY'S OVERALL PROFITABILITY IN ADDITION TO THE PRICING AND CURRENCY PRESSURE THE COMPANY ALSO FACED IN THE FIRST QUARTER A DROPOFF IN REVENUE OVERSEAS ANALYSTS SAID INTERNATIONAL REVENUE GROWTH AT DELL IS EXPECTED TO BE FLAT IN THE FIRST PERIOD WHEN COMPARED WITH THE PREVIOUS QUARTER ANALYST WALTER J WINNITZKI AT DILLON READ IN NEW YORK CALLED THE DELAY IN THE RELEASE OF THE COMPANY'S NUMBERS A MINOR ISSUE BUT HE SAID IT DOES FEED FEARS IN A MARKET ALREADY JITTERY ABOUT PC STOCKS IT'S THE TRADITIONAL THINKING THAT GOOD NEWS COMES EARLY AND BAD NEWS COMES LATE MR WINNITZKI SAID 9305200020 930520 CLINTON FIRES WHITE HOUSE TRAVEL OFFICE FBI IS PROBING ALLEGATIONS OF KICKBACKS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON FIRED THE SEVENMEMBER WHITE HOUSE TRAVEL OFFICE AND THE FEDERAL BUREAU OF INVESTIGATION IS INVESTIGATING WHETHER THE EMPLOYEES RECEIVED KICKBACKS FROM VENDORS PROVIDING SERVICES DEE DEE MYERS THE WHITE HOUSE PRESS SECRETARY SAID THE ACTION WAS TAKEN AFTER A REVIEW FOUND MISMANAGEMENT OVERBILLING AND SHODDY ACCOUNTING METHODS THE OFFICE COORDINATES THE TRAVEL ARRANGEMENTS FOR THE STAFF AND PRESS CORPS ON PRESIDENTIAL TRIPS INCLUDING HIRING THE AIRPLANE CHARTER COMPANY WHITE HOUSE AND FBI OFFICIALS CONFIRMED THAT INVESTIGATORS ARE ALSO LOOKING INTO THE POSSIBILITY THAT KICKBACKS WERE RECEIVED WHILE THE OFFICE CONTRACTED FOR SERVICES AND OVERSAW THE 11 MILLIONAYEAR PRESS ACCOUNT ALTHOUGH THE WHITE HOUSE PUBLICLY SAID THE FBI WAS CALLED IN JUST YESTERDAY OFFICIALS PRIVATELY SAID THE AGENCY HAD BEGUN A PRELIMINARY PROBE EARLIER THE INVESTIGATION ACCORDING TO THOSE FAMILIAR WITH IT STARTED AFTER A CHARTER AIRLINE COMPANY RECENTLY TOLD THE WHITE HOUSE THAT IT WAS APPROACHED BY AN EXECUTIVE OF ULTRAIR A TWOPLANE AIRLINE THAT CURRENTLY PROVIDES THE AIRCRAFT THAT CARRIES THE PRESS ON PRESIDENTIAL TRIPS AND WAS TOLD THAT IT COULD GET THE WHITE HOUSE BUSINESS IF IT GAVE THE ULTRAIR EXECUTIVE A TOP JOB IN THE COMPANY DURING ITS INQUIRY THE WHITE HOUSE IS SAID TO HAVE FOUND THAT THE ULTRAIR EXECUTIVE HAD WORKED AT PAN AMERICAN WHILE THAT COMPANY PROVIDED THE CHARTER SERVICE SEVERAL YEARS AGO THE EXECUTIVE LATER TOOK JOBS AT TWO OTHER CHARTER COMPANIES THE LAST ONE BEING ULTRAIR AND BROUGHT THE WHITE HOUSE ACCOUNT WITH HIM TO BOTH COMPANIES AUDITORS FROM KPMG PEAT MARWICK WHO WERE CALLED IN TO ASSIST THE WHITE HOUSE FOUND THAT THERE WAS NO WRITTEN CONTRACT WITH ULTRAIR FOR THE SERVICE IT WAS ALL DONE WITH A WINK AND A NOD SAID ONE OFFICIAL MS MYERS SAID THAT OTHER COMPANIES HAD COMPLAINED THAT THERE HAD BEEN NO COMPETITIVE BIDDING FOR THE JOB ONCE THE FBI QUIETLY ASSISTED THE WHITE HOUSE THE FOCUS TURNED TO THE TRAVEL OFFICE'S FOURDAY WORKWEEK AND WHAT THE EMPLOYEES DID ON THEIR OFF DAYS AMONG THE AREAS UNDER INVESTIGATION ARE SAID TO BE EXCESSIVELY LAVISH LIFESTYLES FOR PEOPLE EARNING BETWEEN 45000 AND 79000 A YEAR INVESTIGATORS ARE SAID TO BE CHECKING ON EXPENSIVE HOMES AS WELL AS REPORTS OF INVESTMENTS IN A RACE HORSE AND A BOAT IN ADDITION OFFICIALS SAID THERE WERE ABUSES OF PETTY CASH THE WORKERS WERE SAID TO HAVE CASHED CHECKS SUPPOSEDLY TO TIP BELLMEN AND OTHERS ON THE ROAD BUT KEPT SLOPPY RECORDS IN ONE INSTANCE THE RECORDS SAID A CHECK WAS CASHED FOR 2000 BUT THE RETURNED CHECK FROM RIGGS BANK WAS FOR 5000 WHILE AUDITORS WERE REVIEWING THE RECORDS THE MISSING 3000 MYSTERIOUSLY SHOWED UP IN A DESK DRAWER IN INSTALLMENTS OF 2800 AND 200 DURING THE 17MONTH AUDIT THAT BEGAN WITH JANUARY 1992 AUDITORS IDENTIFIED EIGHT PROBLEM CHECKS TOTALING BETWEEN 18000 AND 19000 MR CLINTON APPOINTED A DISTANT COUSIN CATHERINE CORNELIUS 25 YEARS OLD TO HEAD THE OFFICE THAT WILL BE REDUCED IN SIZE MS CORNELIUS HAD WORKED FOR WORLD WIDE TRAVEL OF LITTLE ROCK ARK WHICH HANDLED TRAVEL ARRANGEMENTS FOR THE CLINTON PRESIDENTIAL CAMPAIGN MS MYERS NOTED THAT SMALLER NEWS AGENCIES HAD COMPLAINED ABOUT TRAVEL COSTS AND SHE SAID BILLS WERE SENT OUT ON WHITE HOUSE STATIONERY BUT THE FIRINGS WERE MET WITH CONTEMPT FROM SOME SENIOR MEMBERS OF THE WHITE HOUSE PRESS CORPS A REACTION THAT STUNNED ADMINISTRATION OFFICIALS REPORTERS ASKED 105 QUESTIONS ON THIS SINGLE TOPIC AT THE DAILY PRESS BRIEFING THE TRAVEL OFFICIALS WERE GENERALLY LIKED BY THE PRESS AND CREDITED WITH PROVIDING EXCELLENT SERVICES THOSE FIRED WERE THE OFFICE DIRECTOR BILLY DALE HIS TOP DEPUTY GARY WRIGHT AS WELL AS BARNEY BRASSEAUX JOHN MCSWEENEY JOHN DREYLINGER ROBERT VAN EIMEREN AND RALPH MAUGHAN 9305200019 930520 LETTERS TO THE EDITOR SLANTED COVERAGE OF JAPANESE ECONOMY AS OBSERVERS WHO HAVE STUDIED JAPAN THE INTERNATIONAL ECONOMY AND INDUSTRIAL POLICIES FOR A NUMBER OF YEARS WE WISH TO PROTEST THE PERSISTENTLY SLANTED AND MISINFORMED COVERAGE OF THE JAPANESE ECONOMY ON YOUR EDITORIAL PAGES THE OCCASION FOR OUR COMMENTS IS THE EDITORIAL PAGE ARTICLE THE GREAT INDUSTRIAL POLICY HOAX MARCH 10 IN WHICH KARL ZINSMEISTER CHARACTERIZES JAPANESE INDUSTRIAL POLICY AS AN UNRELIEVED FAILURE THIS ARTICLE IS SIGNIFICANT BECAUSE ITS MISINFORMATION CONTENT IS UNUSUALLY HIGH AND BECAUSE MANY OF ITS BOGUS CLAIMS HAVE APPEARED REPEATEDLY IN WALL STREET JOURNAL EDITORIALS OR OPED FEATURES THOSE OF US WHO HAVE SIGNED THIS LETTER REPRESENT A BROAD SPECTRUM OF VIEWS ABOUT JAPAN'S POLICIES BUT WE SHARE A CONCERN THAT MANY OF THE ITEMS YOU PRESENT AS FACTS ABOUT JAPAN ARE NOTHING OF THE SORT ALICE H AMSDEN NY ROBERT ANGEL COLUMBIA SC MICHAEL BORRUS BERKELEY CALIF PAT CHOATE WASHINGTON STEVEN S COHEN BERKELEY CALIF KENNETH COURTIS TOKYO RONALD DORE CAMBRIDGE MASS JAMES FALLOWS WASHINGTON EAMONN FINGLETON TOKYO GLEN S FUKUSHIMA TOKYO IVAN HALL TOKYO LEON HOLLERMAN CLAREMONT CALIF CHALMERS JOHNSON SAN DIEGO JOHN JUDIS WASHINGTON JESPER KOLL TOKYO ELLIS S KRAUSS PITTSBURGH ROBERT KUTTNER BROOKLINE MASS MICHAEL LEWIS WASHINGTON EDWARD J LINCOLN WASHINGTON MARK MASON NEW HAVEN CONN MIKE M MOCHIZUKI LOS ANGELES R TAGGART MURPHY TOKYO TJ PEMPEL COLORADO SPRINGS COLO SUSAN PHARR CAMBRIDGE MASS CLYDE V PRESTOWITZ JR WASHINGTON C TAIT RATCLIFFE TOKYO RICHARD SAMUELS CAMBRIDGE MASS DEREK SHEARER WASHINGTON FRANK UPHAM BOSTON EZRA VOGEL CAMBRIDGE MASS KAREL VAN WOLFEREN TOKYO ROBERT WADE PRINCETON NJ JOHN ZYSMAN BERKELEY CALIF 9305200018 930520 OTC FOCUS NASDAQ STOCKS SURGE IN LATE TRADING COMPOSITE INDEX CLIMBS BY 965 POINTS BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RALLYING BOND PRICES JOINED FORCES WITH HIGHFLYING TECHNOLOGY AND COMMUNICATIONS ISSUES TO PUSH OVERTHECOUNTER STOCKS SHARPLY HIGHER THE NASDAQ COMPOSITE INDEX LEAPED UP 965 POINTS OR 142 TO 69043 ADVANCING ISSUES OUTNUMBERED DECLINERS 1437 TO 1268 REVERSING AN EARLIER TREND OVERTHECOUNTER ISSUES WERE MIXED FOR MOST OF THE SESSION BUT CLIMBED STEADILY LATE IN THE DAY AS BONDS STRENGTHENED THERE'S TOO MUCH CASH LYING ON THE SIDELINES FOR PEOPLE NOT TO BE LOOKING FOR SOME KIND OF DEFINITIVE FEELING FROM BONDS SAID TONY CECIN DIRECTOR OF EQUITY TRADING AT PIPER JAFFRAY A MAJOR TURNAROUND IN BONDS KEYED THE EQUITY MARKETPLACE UP AND IT LOOKS LIKE THE FEDERAL RESERVE WILL NOT RAISE RATES OTC MARKET TRADING WAS FRENZIED WITH NASDAQ NATIONAL MARKET SYSTEM VOLUME JUMPING TO 2687 MILION SHARES FROM 2294 MILLION ON TUESDAY SCOTT BLEIER A MARKET TECHNICIAN AT JOSEPHTHAL LYON & ROSS SAID THE NASDAQ 100 INDEX A BAROMETER OF THE LARGEST NONFINANCIAL ISSUES CONTINUES TO LEAD THE EQUITY MARKET THE INDEX ROSE 1735 POINTS OR 243 TO FINISH AT 72935 MR BLEIER PROJECTS THAT THE NASDAQ 100 WILL HIT 750 IN THE NEXT COUPLE OF WEEKS AND THEN TEST ITS HIGH OF 76268 AT THAT POINT WE HAVE TO LOOK AGAIN AND SEE IF WE'RE GOING TO MAKE NEW HIGHS OR IF THIS IS THE LAST GASP OF THE MARKET HE SAID ECONOMIC DATA RELEASED YESTERDAY MORNING HAD LITTLE IMPACT ON TRADING OBSERVERS SAID THE GOVERNMENT SAID THE US MERCHANDISE TRADE DEFICIT IN MARCH WIDENED BY 29 TO 1021 BILLION THE LARGEST GAP SINCE MAY 1989 TECHNOLOGY AND COMMUNICATION ISSUES WERE STANDOUTS ON THE NASDAQ MOSTACTIVE LIST TOPPING THE LIST WAS SPECTRUM INFORMATION TECHNOLOGIES WHICH GAINED 2 TO 11 ON 196 MILLION SHARES COMPARED WITH AVERAGE DAILY VOLUME OF 12 MILLION AMERICAN TELEPHONE & TELEGRAPH CO PREVIOUSLY AGREED TO LICENSE TECHNOLOGY MADE BY SPECTRUM A MANUFACTURER OF DATA TRANSMISSION TECHNOLOGY AND POSSIBLY INVEST MORE THAN 10 MILLION IN THE COMPANY THE NASDAQ UTILITY INDEX HIT A RECORD RISING 1449 POINTS OR 174 TO 84463 THE PREVIOUS HIGH WAS 83065 A DONALDSON LUFKIN & JENRETTE UPGRADE SENT LIN BROADCASTING TO A 3 1/2POINT GAIN AT 91 ANALYST DENNIS H LEIBOWITZ LIFTED HIS RATING TO BUY FROM MODERATELY ATTRACTIVE SAYING CHANCES OF A BUYOUT OF THE KIRKLAND WASH COMPANY BY MCCAW CELLULAR HAD IMPROVED WITH AMERICAN TELEPHONE & TELEGRAPH'S PURCHASE OF A STAKE IN MCCAW MCCAW CLIMBED 1 TO 41 INTEL ROSE 3 1/4 TO 104 1/2 THE WALL STREET JOURNAL REPORTED THAT THE SEMICONDUCTOR INDUSTRY EXPECTS ROBUST GROWTH THIS YEAR ESPECIALLY IN THE US MARKET MICROSOFT JUMPED 4 TO 92 1/2 AFTER LEHMAN BROTHERS ANALYST DAVID READERMAN RAISED HIS RATING TO BUY FROM OUTPERFORM HE SAID A FEDERAL JUDGE OVERSEEING THE COPYRIGHT LAWSUIT BROUGHT BY APPLE COMPUTER AGAINST MICROSOFT RULED IN FAVOR OF MICROSOFT ON OVERLAPPING WINDOWS ANIMATION OF WINDOWS AND ICON MOVEMENT ISSUES APPLE ADDED 1 3/4 TO 57 1/4 DEAN WITTER REYNOLDS ANALYST TIMOTHY MCCOLLUM SAID MICROSOFT TOLD HIM THAT THE JUDGE APPARENTLY FURTHER REDUCED THE SCOPE OF THE CASE AGAINST MICROSOFT LOTUS DEVELOPMENT CLIMBED 2 3/4 TO 35 AFTER AT LEAST THREE ANALYSTS RAISED THEIR 1994 OUTLOOKS FOR THE SOFTWARE MAKER CITING REASONS RANGING FROM IMPROVED PROFIT MARGINS TO BETTERTHANEXPECTED PRODUCT SALES LOTUS'S PRESIDENT TOLD THE ANNUAL MEETING TUESDAY THAT COMPANY OFFICIALS BELIEVE THEY CAN DELIVER 15 TO 18 OPERATING MARGINS NEXT YEAR COMPARED WITH 9 IN THE LATEST QUARTER NOVELL ADVANCED 1 3/4 TO 31 1/2 AFTER SAYING IT HAD REACHED AN OUTOFCOURT SETTLEMENT WITH PACER/CATS OVER THE COPYRIGHT AND TRADEMARK INFRINGEMENT SUIT FILED BY NOVELL LAST SEPTEMBER ON THE DOWN SIDE TRIDENT MICROSYSTEMS PLUMMETED 4 TO 7 1/2 ALEX BROWN CUT ITS INVESTMENT RATING TO NEUTRAL FROM STRONG BUY MANY INTEREST RATESENSITIVE ISSUES FOLLOWED BOND PRICES HIGHER INCLUDING BAYBANKS WHICH ROSE 1 1/2 TO 41 3/4 MABON INITIATED COVERAGE WITH A BUY RATING 9305200017 930520 BURYING TRADITION MORE PEOPLE OPT FOR FUN' FUNERALS FOR SOME NEW RITES OF PASSAGE INCLUDE PARTIES BOAT RIDES AND PSYCHEDELIC CASKETS BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL SACRAMENTO CALIF IN A HOTEL BALLROOM HERE ABOUT 3000 REVELERS FLOAT AMONG BOUQUETS OF BALLOONS AND MINGLE AROUND A TRIO OF BARS AN ICE SCULPTURE DRIPS OVER THE BUFFET A SEVENPIECE BAND LED BY A VOCALIST IN A BLACK LACE DRESS BLARES OUT JAMES BROWN'S I FEEL GOOD IN THE MIDST OF THE ACTION IS THE PARTY'S HOST LYING IN A FLAGDRAPED COFFIN HE WAS BT COLLINS A POPULAR CALIFORNIA STATE LEGISLATOR WHO DIED OF A HEART ATTACK IN MARCH AT AGE 52 A FORMER GREEN BERET WHO LOST AN ARM AND A LEG IN THE VIETNAM WAR HE WAS FOND OF UNCONVENTIONAL TRIBUTES HE MARKED HIS 50TH BIRTHDAY WITH A PARACHUTE JUMP AND ONCE DONATED A URINAL TO SANTA CLARA UNIVERSITY'S SCHOOL OF LAW HIS ALMA MATER KNOWN FOR HIS DISDAIN FOR PROTOCOL AND HIS LOVE OF A GOOD TIME HE HAD SET ASIDE FUNDS TO CELEBRATE HIS PASSING AS FOR HIS ATTENDANCE AT THE FESTIVITIES NORA ROMERO HIS LONGTIME ADMINISTRATIVE ASSISTANT ASKS YOU DON'T THINK BT WOULD MISS HIS OWN PARTY DO YOU THESE DAYS A SMALL BUT GROWING NUMBER OF PEOPLE ARE CHOOSING TO BE REMEMBERED IN AN UPBEAT AND SOMETIMES BIZARRE FASHION BY PLANNING THEIR OWN SENDOFFS THESE FORWARDLOOKING FOLKS ENSURE A MEMORABLE GOODBYE TO LOVED ONES IT'S A WAY OF SAYING HEY WORLD I MAY BE DEAD BUT I'M NOT GONE' SAYS STEVE SKILES WHO HAS BEEN A FUNERAL DIRECTOR IN BELMONT CALIF FOR THREE YEARS A FUN FUNERAL IS A VERY HEALTHY IDEA SAYS RICHARD STEFFEN A FRIEND WHO HELPED PLAN THE FINAL PARTY FOR MR COLLINS WHO HAD A HISTORY OF CORONARY TROUBLE I WAS RAISED POLISH CATHOLIC AND SERVICES WOULD ALWAYS END WITH A BLOWOUT PARTY WITH A POLKA BAND KIELBASA AND VODKA EVERYONE WOULD CRY IN THE MORNING BUT BY MIDNIGHT THERE WAS NO PAIN THERE'S DEFINITELY A TREND TOWARD PEOPLE PLANNING CREATIVE FUNERALS SAYS BILL VLCEK OF THE CALIFORNIA FUNERAL DIRECTORS ASSOCIATION WHICH REPRESENTS ABOUT 560 MEMBERS MANY FUNERALS STILL HAVE A SOMEWHAT TRADITIONAL FORMAT BUT WITH A PERSONALIZED SPIN ON IT HE SAYS ABOUT 40000 PEOPLE HAVE PREARRANGED AND PREPAID FOR THEIR SERVICES SINCE CALIFORNIA'S FUNERAL HOMES BEGAN A SPECIAL PROGRAM IN 1985 MR VLCEK ESTIMATES THAT IN THE SAN FRANCISCO BAY AND LOS ANGELES AREAS AS MANY AS 20 OF FUNERALS ARE NONTRADITIONAL LESS THAN A HALF PERCENT OF SERVICES ARE UNCONVENTIONAL ELSEWHERE IN THE STATE HE SAYS WHATEVER HAS MEANING TO THE FAMILY AND FRIENDS IS APPROPRIATE EVEN IF IT MAY SEEM OUTRAGEOUS TO OTHERS SAYS A SPOKESMAN FOR THE FRANK E CAMPBELL FUNERAL CHAPEL IN NEW YORK WHICH HAS A VERY RELIGIOUS CLIENTELE NATIONALLY TOO THERE HAS BEEN AN INCREASE IN PRENEED FUNERAL PLANNING AND IN EFFORTS TO PUT MORE OF THE PERSONALITY OF THE DECEASED INTO THE FUNERAL SAYS A SPOKESWOMAN FOR THE NATIONAL FUNERAL DIRECTORS ASSOCIATION IN MILWAUKEE SOME TAKE A SERIOUS INTEREST IN THEIR FUTURE FUNERALS TO LEAVE LESS WORK AND A MESSAGE FOR THEIR SURVIVORS PHILLIP QUATTROCIOCCHI WHO IS DYING OF AIDS HAS PLANNED TWO SERVICES ONE TO BE HELD IN SACRAMENTO CALIF WHERE HE GREW UP WILL BE A TRADITIONAL RELIGIOUS SERVICE THE OTHER IN SAN FRANCISCO WHERE HE NOW LIVES WILL FEATURE A VIDEO OF HIMSELF URGING OTHERS TO DO SOME VOLUNTEER WORK HE SAYS HE HAS PICKED SOME EXCELLENT SPEAKERS FOR THE OBSEQUIES HANDLED THE CATERING ARRANGEMENTS AND HIRED A GRAPHIC ARTIST TO DESIGN THE INVITATIONS I WANTED TO GET ON WITH LIVING AND NOT KEEP WORRYING ABOUT DYING HE SAYS THE CRUISE FEATURED A JAZZ BAND AND A BLUES GROUP PLENTY OF REFRESHMENTS AND A SCATTERING OF THE DECEASED'S ASHES TO THE PLAYING OF I'LL BE SEEING YOU FRIENDS HAVE BEEN TALKING ABOUT IT EVER SINCE WHEN CONNIE SCRAMLIN 58 A FAN OF BASEBALL'S DETROIT TIGERS LEARNED SHE HAD CANCER SHE ARRANGED TO BE BURIED IN A CLUB UNIFORM IN A COFFIN WITH THE TEAM'S COLORS OF ORANGE NAVY BLUE AND WHITE TAKE ME OUT TO THE BALLGAME WAS PLAYED AT HER SERVICE LAST JUNE I KNEW THAT SOME PEOPLE MIGHT THINK IT WAS ALMOST SACRILEGIOUS SAYS MRS SCRAMLIN'S DAUGHTER DEBBIE PILLSBURY BUT MOST GUESTS WERE REALLY MOVED NOT EVERYONE APPROVES OF EXCESSIVE MERRYMAKING DEACON BILL MITCHELL OF THE CATHOLIC ARCHDIOCESE OF SAN FRANCISCO SAYS THE EMPHASIS SHOULD BE ON PRAYER FOR THE DEAD AND ON CONSOLATION FOR THOSE GOING THROUGH THE MOURNING PROCESS I'M NOT SURE IF A GREAT BIG PARTY DOES A LOT TO REALLY HELP RON ROY OF WOODS GLENDALE MORTUARY IN GLENDALE CALIF WITH MORE THAN 30 YEARS IN THE FUNERAL BUSINESS HAS MET MANY CREATIVE REQUESTS INCLUDING ONE FROM A WOMAN WHO ASKED TO BE INTERRED WITH A PORTABLE TV TUNED TO HER FAVORITE SOAP OPERAS FRIENDS OF A HELL'S ANGEL PLACED SWITCHBLADE KNIVES BRASS KNUCKLES AND MARIJUANA CIGARETTES BESIDE THE BIKER'S BODY WHICH WAS TO BE CREMATED ONE COUPLE BROUGHT IN A PARAKEET FOR MR ROY TO EMBALM STIPULATING THAT THE BIRD BE ENTOMBED WITH THE SPOUSE WHO DIED FIRST THAT WAS ABOUT 12 YEARS AGO AND WE'RE STILL DILIGENTLY HOLDING ON TO TWEETY BIRD HE SAYS SOME REQUESTS REQUIRE SPECIAL EFFORT LAST SUMMER MR SKILES THE BELMONT MORTICIAN FULFILLED A WOMAN'S WISH TO BE BURIED AT SEA IN A HANDCARVED CANOE FULLBODY BURIAL ISN'T LEGAL OFF CALIFORNIA'S COAST SO HE AND A COLLEAGUE PUT HER IN THE BACK OF A UHAUL TRUCK AND DROVE TO OREGON HE SAYS THEY RENTED A FISHING BOAT WENT 15 MILES OFFSHORE AND PUSHED THE CANOE OVERBOARD THE PRICE ABOUT 4000 THAT CAN BE CONSIDERABLY LESS THAN THE COST OF A TRADITIONAL FUNERALPARLOR SERVICE AND BURIAL IN CERTAIN AREAS OF THE COUNTRY THOSE WITH MORE CONVENTIONAL TASTES FOR FUNERALS CAN STILL REQUEST A BIT OF FLAIR SAN FRANCISCO'S GHIA GALLERY FOR INSTANCE HAS DECORATED CASKETS WITH GRAFFITI AND PSYCHEDELIC ART AND IT IS DEVELOPING A LINE OF COFFINS EACH CARVED FROM AN INDIVIDUAL TREE LORETTO CASKET CO IN TENNESSEE SELLS COFFINS EMBLAZONED WITH THE LOGOS OF MAJOR UNIVERSITIES AT A COLUMBARIUM IN SAN FRANCISCO PEOPLE HAVE FOUND THEIR FINAL RESTING PLACES IN TOBACCO HUMIDORS CAMERAS AND COOKIE JARS WHILE PATRONS OF OTHER VAULTS HAVE ASKED TO BE STORED IN A FAVORITE HUNTING DECOY OR BOWLING PIN HUNTERS CAN ARRANGE TO HAVE IOWABASED CANUCK'S SPORTSMAN'S MEMORIALS INC PLACE THEIR ASHES INTO SHOTGUN SHELLS AND FIRE THEM INTO THE WOODS A VENTURE ONCE PROPOSED BY A FLORIDA GROUP TO LAUNCH CREMATED REMAINS INTO SPACE NEVER GOT OFF THE GROUND HOWEVER AND SOME WISHES JUST CAN'T BE HONORED KEVIN MINKE A COUNSELOR AT THE TELOPHASE SOCIETY A SAN DIEGO CREMATION CONCERN SAYS HE HAS HAD CUSTOMERS WHO SAY THEY WANT THEIR ASHES THROWN OUT WITH THE GARBAGE OR FLUSHED DOWN THE TOILET BOTH METHODS ARE ILLEGAL STILL THOSE IN THE INDUSTRY APPRECIATE THE IMPORTANCE OF MAKING A SPECIAL EXIT MR ROY ARRANGED TO BE BURIED OFF CANADA'S COAST IN FISHING GEAR I LOVE TO FISH AND I WANT THEM TO PUT ME OUT THERE WITH THE FISH HE SAYS MR SKILES A SELFDESCRIBED BIGBREAKFAST MAN HAS PLANNED A MORNING CRUISE FOR HIS FRIENDS WITH A MENU OF PORK CHOPS AND EGGS TO ACCOMPANY A SCATTERING OF HIS ASHES HIS WIFE WANTS HER ASHES TOSSED FROM A HOTAIR BALLOON SHE'S ALWAYS WANTED TO TAKE ONE OF THOSE BALLOON TRIPS HE SAYS BUT SHE'S AFRAID OF HEIGHTS 9305200016 930520 THE POW DRAMA VIETNAM THE UNFINISHED BUSINESS BY GEORGE A CARVER JR NO LEGACY OF THE VIETNAM WAR IS MORE CONTENTIOUS OR HAS CAUSED MORE HEARTACHE THAN THE POW ISSUE WHICH INVOLVES SUCH EMOTIONALLY CHARGED QUESTIONS AS WHETHER ANY AMERICAN PRISONERS OF THE VIETNAMESE COMMUNISTS WERE LEFT BEHIND OR WORSE DELIBERATELY HELD BACK BY THEIR CAPTORS WHEN THE US DISENGAGED FROM INDOCHINA IN THE SPRING OF 1973 IT INVOLVES THE VICISSITUDES AND FATES OF THE 2266 AMERICANS STILL OFFICIALLY LISTED AS MISSING IN ACTION AND WHETHER ANY OF THESE AMERICANS MIGHT POSSIBLY STILL BE ALIVE HARVARDBASED RESEARCHER STEPHEN MORRIS HAS RECENTLY BROUGHT THE LONGSIMMERING POW/MIA ISSUE TO A BOIL THIS JANUARY WHILE EXAMINING SOVIET ARCHIVES IN MOSCOW MR MORRIS DISCOVERED WHAT PURPORTS TO BE THE RUSSIAN TRANSLATION OF A DETAILED SEPTEMBER 1972 BRIEFING ON THE POW SITUATION GIVEN TO THE VIETNAMESE COMMUNIST PARTY LAO DONG POLITBURO BY GEN TRAN VAN QUANG IDENTIFIED AS DEPUTY CHIEF OF THE GENERAL STAFF OF THE PEOPLE'S ARMY OF VIETNAM PAVN AND HEAD OF A POLITBURO COMMITTEE RESPONSIBLE FOR POW MATTERS ACCORDING TO THIS DOCUMENT GEN QUANG SAID THAT 1205 AMERICANS WERE THEN LOCATED IN THE PRISONS OF NORTH VIETNAM THIS IS A BIG NUMBER HE ADDS OFFICIALLY UNTIL NOW WE PUBLISHED A LIST OF ONLY 368 PRISONERS OF WAR THE REMAINDER WE HAVE NOT REVEALED THIS 1205 FIGURE OF COURSE SQUARES ILL WITH THE TOTAL OF 591 AMERICANS ACTUALLY RELEASED BY HANOI THE FIT GETS EVEN WORSE WHEN YOU REMEMBER THAT OF THOSE 591 REPATRIATED POWS ONLY 482 WERE FROM PRISONS IN NORTH VIETNAM THE OTHER 109 CAME FROM PRISONS IN THE SOUTH HENCE IF THESE NUMBERS ARE ACCURATE SOME 723 AMERICAN PRISONERS WERE HELD BACK BY THE NORTH VIETNAMESE IN 1973 ACTUALLY THE FIT IS WORSE THAN THAT FOR THE SEPTEMBER 1972 NUMBER DOES NOT INCLUDE ANY AMERICANS LATER CAPTURED PRIOR TO APRIL '73 IN LAOS CAMBODIA OR NORTH VIETNAM INCLUDING ANY OF THE 60ODD AMERICANS IN PLANES SHOT DOWN DURING THE CHRISTMAS BOMBING OF HANOI AT LEAST SOME OF WHOM PRESUMABLY MADE IT TO THE GROUND ALIVE IF THE DOCUMENT MR MORRIS UNEARTHED IS GENUINE IN SHORT HANOI IS RESPONSIBLE FOR THE FATE OF MORE THAN 700 AMERICAN SERVICEMEN WHOM IT HAS NEVER ADMITTED HAVING IN ITS CUSTODY SINCE MR MORRIS FOUND THE DOCUMENT A BRISK COTTAGE INDUSTRY HAS SPRUNG UP TRYING TO DENIGRATE ITS AUTHENTICITY OR ACCURACY THE VIETNAMESE GOVERNMENT CLAIMS IT IS A FORGERY AND A NUMBER OF PEOPLE ON THIS SIDE OF THE PACIFIC HAVE ALSO CHALLENGED THE DOCUMENT'S AUTHENTICITY ON A VARIETY OF GROUNDS TO MY PERHAPS LESS THAN OBJECTIVE EYE MR MORRIS HAS EFFECTIVELY DISPOSED OF MOST OF THESE CHALLENGES AND CAVILS MOREOVER HIS DOCUMENT'S ASSERTION THAT THE VIETNAMESE COMMUNISTS DIVIDED THEIR PRISONERS INTO THREE GROUPS EACH KEPT RIGIDLY APART FROM THE OTHER TWO SEEMS TO CONFIRM A HYPOTHESIS I PUT FORWARD TWO DECADES AGO AT THE TIME WHEN THE DOCUMENT WAS ALLEGEDLY BEING DRAFTED THE FIRST GROUP I HAD BELIEVED WAS PROBABLY MADE UP OF POWS WHO HAD COOPERATED WITH THEIR CAPTORS AND HENCE MERITED A REWARD PLUS PRISONERS WHOSE RELEASE WOULD DO THE VIETNAMESE COMMUNISTS NO HARM THE SECOND WAS PROBABLY MADE UP OF THOSE WHOM THE VIETNAMESE COMMUNISTS WANTED TO PUNISH AND HENCE WERE LIKELY TO BE HELD LONGER THE THIRD GROUP WAS PROBABLY MADE UP OF PRISONERS WHO KNEW THINGS THE COMMUNISTS WOULD NOT WANT THE WORLD TO LEARN THIS GROUP I FEARED WOULD NEVER BE RELEASED DECADES LATER I WAS INTRIGUED BY THE MORRIS DOCUMENT'S ASSERTIONS THAT THE COMMUNISTS HAD INDEED DIVIDED PRISONERS INTO THREE GROUPS ALTHOUGH NOT QUITE AS I HAD SURMISED IN ANY CASE IT IS OBVIOUSLY IMPORTANT TO ESTABLISH WHETHER THIS DOCUMENT IS GENUINE ACTUALLY THERE ARE TWO THINGS TO AUTHENTICATE FIRST WHETHER THE DOCUMENT MR MORRIS FOUND IN MOSCOW IN THE FILES OF THE SOVIET COMMUNIST PARTY'S CENTRAL COMMITTEE IS AN AUTHENTIC SOVIET DOCUMENT SECOND WHETHER IT IS IN FACT AN ACCURATE TRANSLATION OF AN AUTHENTIC VIETNAMESE ORIGINAL THAT IS INDEED THE TEXT OF A 1972 POLITBURO BRIEFING ON POWS THE RUSSIAN QUESTION SEEMS TO HAVE BEEN ANSWERED GEN DIMITRI VOLKOGONOV COCHAIRMAN OF A JOINT USRUSSIAN COMMISSION LOOKING INTO POW/MIA MATTERS HAS SAID THAT IT IS AN AUTHENTIC RUSSIAN DOCUMENT THE VIETNAMESE QUESTION HOWEVER WILL BE MUCH MORE DIFFICULT TO RESOLVE SUGGESTIONS ON HOW TO GO ABOUT THIS TASK APPEAR IN THE BOX NEARBY SEE THE POW DRAMA NEEDED AUTHENTICATION COMMISSION WSJ MAY 20 1993 THE VIETNAMESE HAVE DENOUNCED THE DOCUMENT AS AN OBVIOUS FORGERY BECAUSE AT THE TIME IT WAS SUPPOSEDLY WRITTEN SEPTEMBER 1972 ITS ALLEGED AUTHOR GEN QUANG WAS NOT THEY CLAIM THE DEPUTY CHIEF OF THE PAVN GENERAL STAFF NOR DID HE HAVE ANYTHING TO DO WITH POWS BUT THERE IS EVIDENCE THAT WITH RESPECT TO GEN QUANG'S CAREER THE VIETNAMESE ARE FUDGING AT A MINIMUM MUCH OF THE FRONT PAGE OF THE NOVEMBER 21 1992 EDITION OF NHAN DAN THE LAO DONG PARTY'S OFFICIAL NEWSPAPER WAS DEVOTED TO GEN QUANG THAT PAGE CONTAINED AN ARTICLE ABOUT HIM A PICTURE AND A PRESUMABLY OFFICIAL CAPSULE BIOGRAPHY WHICH MERITS CLOSE EXAMINATION FROM 1959 TO 1960 THE BIOGRAPHY STATES TRAN VAN QUANG WAS DEPUTY CHIEF OF THE JOINT GENERAL STAFF OF THE PEOPLE'S ARMY OF VIETNAM FROM 1961 TO 1964 HE WAS ASSIGNED TO THE MILITARY COMMITTEE OF THE CENTRAL OFFICE FOR SOUTH VIETNAM THE COMMAND ENTITY THAT DIRECTED THE STRUGGLE IN THE SOUTH DURING THE VIETNAM WAR FROM 1965 TO 1974 HE IS LISTED AS BEING THE COMMANDER OF MILITARY REGION 4 AND TRI THIEN HUE THIS DUAL COMMAND ENCOMPASSES WHAT THE VIETNAMESE COMMUNISTS TRADITIONALLY TERMED INTERZONE V FROM 1974 TO 1978 GEN QUANG IS LISTED AS BEING AGAIN DEPUTY CHIEF OF THE PAVN GENERAL STAFF OTHER SOURCES DOCUMENT THAT GEN QUANG WAS A MEMBER OF THE MILITARY COMMITTEE OF THE LAO DONG CENTRAL COMMITTEE FROM 1961 ONWARD IN VIETNAMESE COMMUNIST MILITARY ORGANIZATIONS PARTICULARLY UPPER ECHELON COMMANDS THE DEPUTY IS USUALLY THE CHIEF POLITICAL OFFICER IN ANY COMMAND THE HANDLING OF PRISONERS USUALLY COMES UNDER THE POLITICAL OFFICER'S JURISDICTION HENCE GEN QUANG'S OFFICIAL BIOGRAPHY STRONGLY SUGGESTS THAT HE WAS INVOLVED IN POW MATTERS THROUGHOUT THE WAR ALTHOUGH THE NHAN DAN BIOGRAPHY SCUTTLES THE CLAIM MADE BY A VIETNAMESE FOREIGN MINISTRY OFFICIAL THAT GEN QUANG WAS NEVER DEPUTY CHIEF OF THE PAVN GENERAL STAFF IT ALSO PURPORTS TO PLACE HIM ELSEWHERE AT THE TIME OF THE MORRIS DOCUMENT'S BRIEFING IF THE DETAILS OF THE BIOGRAPHY ARE ACCURATE GEN QUANG WAS ON HIS INTERZONE V POSTING IN SEPTEMBER 1972 THERE IS SOMETHING EYEBROWLIFTING ABOUT THAT INTERZONE V POSTING HOWEVER IT IS NOTICEABLY OUT OF PATTERN ALL THE OTHER POSTINGS LISTED IN GEN QUANG'S BIOGRAPHY ARE OF ONE TO FOUR YEARS' DURATION BUT THE INTERZONE V POSTING ALLEGEDLY LASTED NINE YEARS FROM 1965 TO 1974 TO CONCEAL THE FACT THAT GEN QUANG HAD BEEN THE DEPUTY CHIEF AND SENIOR POLITICAL OFFICER OF THE PAVN GENERAL STAFF WORKING ON POW MATTERS IN 1972 AND 1973 THE LAO DONG IS PERFECTLY CAPABLE OF HAVING DOCTORED HIS OFFICIAL BIOGRAPHY BY PADDING HIS INTERZONE V POSTING TO MAKE IT APPEAR THAT HE HAD NOT RESUMED HIS PAVN GENERAL STAFF BILLET UNTIL 1974 THERE ARE OTHER REASONS FOR SUSPICION THE NHAN DAN BIOGRAPHY WAS PUBLISHED WHILE FORMER JOINT CHIEFS CHAIRMAN JOHN VESSEY THE US EMISSARY TO THE VIETNAMESE ON POW/MIA MATTERS FOR PRESIDENTS REAGAN BUSH AND NOW CLINTON WAS SHUTTLING BACK AND FORTH TO HANOI THE LAO DONG MAY NOT HAVE WANTED GEN VESSEY TO REALIZE THAT GEN QUANG HAD HELD THIS GENERAL STAFF POSITION AND WORKED ON POW MATTERS DURING THE FINAL PHASE OF THE JANUARY 1973 PARIS PEACE NEGOTIATIONS AND DURING OPERATION HOMECOMING UNDER WHICH THE POWS WERE REPATRIATED WHAT IS MORE THE LAO DONG MAY HAVE KNOWN OR FEARED THAT THE 1972 BRIEFING DOCUMENT WAS TICKING LIKE A TIME BOMB IN SOME SOVIET ARCHIVE AND WANTED TO BUILD A COVER STORY AGAINST THE CONTINGENCY OF THAT DOCUMENT'S COMING TO LIGHT TO THOSE NOT FAMILIAR WITH THE LAO DONG THESE SPECULATIONS MAY SOUND FARFETCHED BUT IN FACT THIS IS HOW THE LAO DONG ACTS FURTHERMORE I KNOW THAT THERE IS SOME US DOCUMENTATION FROM THE EARLY 1970S PLACING GEN QUANG IN HIS PAVN GENERAL STAFF POSITION IN 197273 ALSO GEN QUANG HIMSELF SEEMS A BIT TENDERNERVED ON THIS POINT ACCORDING TO THE NEW YORK TIMES DURING GEN VESSEY'S JUST COMPLETED TRIP TO HANOI GEN QUANG ACKNOWLEDGED HAVING TWICE SERVED AS DEPUTY CHIEF OF THE PAVN GENERAL STAFF BUT NOT HE INSISTED IN 1972 I WAS NOT IN HANOI AT THAT TIME GEN QUANG IS QUOTED AS SAYING AND I WAS NEVER IN CHARGE OF AMERICAN PRISONERS OF WAR THIS LATTER CLAIM MAY BE TECHNICALLY ACCURATE BUT GIVEN THE POSITIONS THAT ARE LISTED IN GEN QUANG'S OFFICIAL BIOGRAPHY AND THAT HE ACKNOWLEDGES HAVING HELD HE WAS CERTAINLY HEAVILY INVOLVED IN POW MATTERS DURING THE BULK OF HIS CAREER FURTHERMORE GEN QUANG IS A LITTLE VAGUE ON WHEN HIS INTERZONE V POSTING ENDED THE US OF COURSE MAY NEVER BE ABLE TO DETERMINE THE AUTHENTICITY OF THE MORRIS DOCUMENT CERTAINLY ALL THOUGHTS OF IMPROVED DIPLOMATIC RELATIONS LET ALONE INTERNATIONAL MONETARY FUND GRANTS OR US AID SHOULD BE INDEFINITELY DEFERRED UNTIL VIETNAM HAS SATISFACTORILY ANSWERED ALL OF AMERICA'S POW/MIA QUESTIONS THIS IS SOMETHING THAT PRESIDENT CLINTON AS A FORMER ANTIWAR PROTESTER WHO IS NOW COMMANDER IN CHIEF OWES HIS FELLOW CITIZENS WHO ANSWERED THEIR COUNTRY'S CALL TO ARMS DURING THE VIETNAM WAR IN PARTICULAR THIS IS SOMETHING HE OWES TO THE FAMILIES OF THOSE WHO FELL INTO VIETNAMESE COMMUNIST HANDS DURING THE COURSE OF THAT STRUGGLE AND WHOSE FATES ARE UNKNOWN ABOVE ALL IT IS SOMETHING HE OWES TO THOSE WHO WHILE WEARING THEIR COUNTRY'S UNIFORM AND IMPRISONED FOR FIGHTING IN ITS NAME MAY HAVE DIED IN A KATYNLIKE MASSACRE AT THE HANDS OF VIETNAMESE COMMUNISTS WHOSE CAUSE MANY IN THE ANTIWAR MOVEMENT ENTHUSIASTICALLY AND UNCRITICALLY CHAMPIONED EVEN THOUGH THE LEADERS OF THAT CAUSE WERE ENGAGED IN ARMED HOSTILITIES AGAINST THE US MR CARVER WAS SPECIAL ASSISTANT TO THE DIRECTOR OF CENTRAL INTELLIGENCE FOR VIETNAMESE AFFAIRS IN 197273 HE IS NOW AN OLIN FELLOW AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON 9305200015 930520 BUSINESS BRIEF BOEING CO UNIT GETS DEALS FOR WORK ON NATO AIR FORCE PLANES BOEING CO SAID ITS DEFENSE & SPACE GROUP WON CONTRACTS TOTALING 180 MILLION FOR UPGRADING WORK ON RADAR AIRCRAFT OWNED BY THE AIR FORCE AND NORTH ATLANTIC TREATY ORGANIZATION BOEING BASED IN SEATTLE SAID THE WORK INCLUDES A 1277 MILLION CONTRACT FROM NATO TO BUILD AND INSTALL SPECIAL PASSIVE LISTENING AND DETECTION EQUIPMENT ABOARD 17 AIRCRAFT BOEING RECEIVED A SECOND NATO CONTRACT VALUED AT 355 MILLION TO INSTALL UPGRADED EARLY WARNING AND DETECTION EQUIPMENT ABOARD 16 PLANES THE ORDER FOLLOWS A 2946 MILLION CONTRACT ANNOUNCED IN JANUARY FOR THE MODERNIZATION EQUIPMENT BOEING SAID IT ALSO RECEIVED A 168 MILLION AIR FORCE CONTRACT TO BUILD PASSIVE LISTENING AND DETECTION EQUIPMENT FOR SIX PLANES 9305200014 930520 NIKKO SETTLES LAWSUIT ALLEGING IT CONCEALED LOSS FOR FISCAL 1991 WASHINGTON THE US SUBSIDIARY OF JAPAN'S NIKKO SECURITIES CO AGREED TO PAY 1 MILLION TO SETTLE A CIVIL LAWSUIT THAT ACCUSED THE FIRM OF CONCEALING AN 18 MILLION LOSS FOR ITS 1991 FISCAL YEAR AT THE SAME TIME NIKKO SECURITIES CO INTERNATIONAL AGREED TO BE CENSURED BY THE SECURITIES AND EXCHANGE COMMISSION FOR FAILING TO PROPERLY SUPERVISE THE EMPLOYEE WHO CAUSED THE LOSS AND FOR FILING FALSE FINANCIAL STATEMENTS WITH THE AGENCY THE SEC SUED NIKKO'S US UNIT FEB 25 IN FEDERAL COURT IN NEW YORK ALLEGING THAT A FOREIGNEXCHANGE TRADER FOR THE FIRM LOST 18 MILLION THROUGH UNAUTHORIZED CURRENCY TRADES THEN CONCEALED THE LOSS THE LOSS WAS LATER DISCOVERED BY THE TOP MANAGEMENT OF THE NIKKO UNIT BUT WAS MISREPRESENTED TO THE FIRM'S AUDITORS AND IN FILINGS WITH THE SEC THE AGENCY ALLEGED IN ITS COMPLAINT IN A STATEMENT NIKKO CHAIRMAN RYOSUKE SUZUKI BLAMED THREE FORMER OFFICERS OF THE FIRM'S US UNIT FOR NOT REPORTING THE LOSS AS PART OF THE SETTLEMENT THE FIRM'S FORMER PRESIDENT IS PERMANENTLY BARRED FROM THE US SECURITIES INDUSTRY AND THE UNIT'S FORMER CHIEF FINANCIAL OFFICER IS BARRED FOR FIVE YEARS THE FORMER HEAD OF THE UNIT'S ACCOUNTING SECTION IS SUSPENDED FOR A YEAR NIKKO IS SATISFIED THAT THIS SETTLEMENT PUTS THE COMPANY'S RESPONSIBILITY FOR THE FORMER OFFICERS' ACTIONS AT AN END THE CHAIRMAN SAID IN HIS STATEMENT THE SETTLEMENT IN WHICH NIKKO NEITHER ADMITTED NOR DENIED WRONGDOING ENDS AN SEC PROCEEDING THAT BEGAN IN LATE1991 AFTER THE JAPANESE MINISTRY OF FINANCE DETERMINED THAT JAPANESE SECURITIES FIRMS HAD IMPROPERLY COMPENSATED CERTAIN CUSTOMERS FOR THEIR LOSSES THE SEC INVESTIGATION UNCOVERED ONLY ONE INSTANCE OF ALLEGEDLY IMPROPER COMPENSATION BUT IT DID PROMPT ALLEGATIONS OF SEVERAL OTHER VIOLATIONS OF US SECURITIES LAWS ON THE PART OF NIKKO AND TWO OTHER JAPANESE SECURITIES FIRMS 9305200013 930520 CREDIT MARKETS TREASURY BOND PRICES RISE IN VOLATILE SESSION AS TRADERS CITE SPECULATION ON FED RATE PLANS BY TOM HERMAN AND TERENCE ROTH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK EMERGING FROM A DEEP SLUMP US TREASURY BOND PRICES CAME ROARING BACK YESTERDAY AFTERNOON TO POST STRONG GAINS IN AN UNUSUALLY VOLATILE SESSION LONGTERM GOVERNMENT BONDS FIRST TUMBLED MORE THAN HALF A POINT THEN SWIFTLY SOARED MORE THAN ONE FULL POINT OR 10 FOR EACH 1000 FACE AMOUNT AS OF LATE YESTERDAY THE TREASURY'S BENCHMARK 30YEAR BONDS WERE TRADING AT 101 29/32 UP NEARLY 5/8 POINT FROM LATE TUESDAY THEIR YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE FELL BACK BELOW THE 7 BARRIER FINISHING THE DAY AT 697 DOWN FROM 701 AT ONE STAGE EARLY YESTERDAY THE BONDS TRADED AS LOW AS 100 23/32 YIELDING 707 SOME TRADERS ATTRIBUTED THE BOND MARKET'S SUDDEN TURNAROUND PARTLY TO SPECULATION THAT FEDERAL RESERVE OFFICIALS HAVE DECIDED NOT TO RAISE SHORTTERM INTEREST RATES FED OFFICIALS WHO MET TUESDAY TO REVIEW CREDIT STRATEGY HAVEN'T MADE ANY COMMENTS THUS FAR SEVERAL TRADERS SAID THEY ARE BETTING THAT THE FED WON'T RAISE OR CUT RATES UNTIL CLEARER SIGNS OF THE INFLATION OUTLOOK APPEAR OTHER TRADERS ARGUED THAT THE FED HAD LITTLE OR NOTHING TO DO WITH YESTERDAY'S RALLY INSTEAD THEY POINTED TO FALLING COMMODITY PRICES A DEVELOPMENT THEY SAID HELPED TO REDUCE INFLATION FEARS AND CONTRIBUTED TO A BELIEF THAT THE LATEST INFLATION SCARE COULD BE JUST ANOTHER IN A LONG SERIES OF FALSE ALARMS GOLD WAS THE CATALYST FOR YESTERDAY'S BOND RALLY SAID ROBERT D SBARRA MANAGING DIRECTOR AT CARROLL MCENTEE & MCGINLEY INC AS THE PRICE OF GOLD CAME OFF ITS HIGHS AND HEADED INTO NEGATIVE TERRITORY THE BOND MARKETS RECOVERED BUT NUMEROUS TRADERS AND INVESTMENT ADVISERS REMAIN BEARISH I THINK YESTERDAY'S RALLY IS JUST A BOUNCE IN A CONTINUED BEAR MARKET FOR BONDS SAID JOHN R BURRUS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CRT GOVERNMENT SECURITIES LTD YOU'VE GOT THE ECONOMY PICKING UP AND INFLATION PICKING UP YOU'VE GOT A LACK OF CONFIDENCE IN THE CLINTON ADMINISTRATION AND THAT'S A LOT OF THINGS THAT ARE NEGATIVE FOR BONDS INTERNATIONAL BOND MARKETS ALSO WERE UNUSUALLY LIVELY YESTERDAY GERMAN GOVERNMENT BOND PRICES SANK AFTER GERMANY'S CENTRAL BANK THE BUNDESBANK REPORTED AN UNEXPECTED SURGE IN A CLOSELY WATCHED MEASURE OF ITS MONEY SUPPLY ECONOMISTS SAID THAT NEWS ADDED TO INFLATION JITTERS AND COULD DISCOURAGE BUNDESBANK OFFICIALS FROM CUTTING INTEREST RATES FURTHER EVEN THOUGH GERMANY'S RECESSION APPEARS TO BE DEEPENING BUNDESBANK OFFICIALS THIS WEEK ISSUED A STERN WARNING TO THE GOVERNMENT ABOUT ITS BALLOONING BUDGET DEFICITS URGING CUTS IN SPENDING HOPES FOR EUROPEAN UNITY GREW EARLIER THIS WEEK WHEN DANISH VOTERS FINALLY APPROVED PLANS FOR CLOSER EUROPEAN TIES LAST YEAR DENMARK NEARLY KILLED THE MOVEMENT BY REJECTING THE MAASTRICHT TREATY YESTERDAY DENMARK'S CENTRAL BANK CUT A KEY LENDING RATE BY A FULL PERCENTAGE POINT AND PORTUGAL AND SWEDEN ALSO ANNOUNCED INTERESTRATE REDUCTIONS DENMARK'S CENTRAL BANK CUT ITS DISCOUNT RATE TO 825 EFFECTIVE IMMEDIATELY FROM 925 AND ALSO LOWERED OTHER RATES THE BANK OF PORTUGAL SLASHED ITS RATE ON ABSORBING LIQUIDITY FROM THE BANKING SYSTEM TO 13 FROM 17 AND SWEDEN'S CENTRAL BANK SAID IT WILL CUT A KEY LENDING RATE TO 875 FROM 9 NEVERTHELESS ECONOMISTS REMAIN DEEPLY CONCERNED ABOUT GERMANY'S PLIGHT SOME ANALYSTS FEAR THAT IF GERMANY REFUSES TO CUT ITS RATES ANY FURTHER GERMANY'S ECONOMY WILL SINK EVEN DEEPER INTO RECESSION HURTING OTHER EUROPEAN NATIONS GERMAN RELUCTANCE TO CUT RATES ALSO COULD INHIBIT OTHER EUROPEAN CENTRAL BANKS FROM CUTTING THEIR RATES FURTHER IN THE US INFLATION FEARS HAVE SWEPT THE FINANCIAL MARKETS RECENTLY SENDING BOND PRICES INTO A TAILSPIN THOSE FEARS GREW LAST WEEK AFTER THE GOVERNMENT REPORTED UNEXPECTED SURGES IN PRODUCER AND CONSUMER PRICES IN APRIL PRODUCER PRICES SOARED 06 WHILE CONSUMER PRICES ROSE 04 BOTH REPORTS CAME IN WELL ABOVE MANY ECONOMISTS' FORECASTS TREASURY OFFICIALS SAY INVESTORS APPEAR TO BE OVERREACTING YOU ALWAYS HAVE TO BE CONCERNED ABOUT INFLATION BUT THERE APPEARS TO BE A LOT OF EXCESS CAPACITY IN THE ECONOMY RIGHT NOW SAID LAWRENCE SUMMERS THE TREASURY'S UNDERSECRETARY FOR INTERNATIONAL AFFAIRS MEETING WITH REPORTERS BEFORE SPEAKING AT A CONFERENCE HERE HE SAID SO THERE'S NOT A SITUATION WHERE CONCERN ABOUT INFLATION SHOULD BE PARTICULARLY PRESSING EVEN SO SOME ANALYSTS ARGUE THAT THE FEDERAL RESERVE NEEDS TO NUDGE RATES SLIGHTLY HIGHER TO REMIND INVESTORS OF ITS DETERMINATION TO FIGHT INFLATION THE FED'S CREDIBILITY IS ON THE LINE RIGHT NOW SAID LAWRENCE A KUDLOW SENIOR MANAGING DIRECTOR AT BEAR STEARNS & CO THE LONGER THE FED WAITS TO TIGHTEN THE HARDER IT WILL BE FOR THE FED TO MAINTAIN ANY FORM OF PRICE STABILITY HE SAID THE FED NEEDS TO RAISE SHORTTERM INTEREST RATES BY ABOUT HALF A PERCENTAGE POINT AS BOND PRICES SOARED YESTERDAY AFTERNOON SOME TRADERS SAID THEY HAD HEARD RUMORS OF HUGE PURCHASES BY MAJOR INSTITUTIONAL INVESTORS BUT A SPOKESMAN FOR FINANCIER GEORGE SOROS DENIED SPECULATION THAT MR SOROS WAS BUYING BONDS YESTERDAY AND SELLING GOLD DESPITE YESTERDAY'S RALLY INVESTORS WHO BOUGHT THREEYEAR AND 10YEAR TREASURY NOTES DURING LAST WEEK'S GOVERNMENT QUARTERLY FINANCING OPERATION HAVE BEEN BURNED AT LEAST SO FAR YIELDS ON THOSE TWO ISSUES ARE WELL ABOVE WHERE THEY WERE AT THE AUCTIONS FOR EXAMPLE THREEYEAR TREASURY NOTES NOW YIELD 442 UP FROM AN AVERAGE OF 427 AT THE GOVERNMENT'S AUCTION MAY 11 THE TREASURY'S 10YEAR NOTES NOW YIELD 606 UP FROM AN AVERAGE OF 596 AT THE GOVERNMENT'S MAY 12 AUCTION AN UNEXPECTED SURGE IN GERMANY'S MONEY SUPPLY GROWTH JARRED BOND INVESTORS GERMANY'S 675 ISSUE DUE 2003 FELL 025 POINT TO 9925 TO YIELD 685 SHORTERTERM ISSUES POSTED LARGER DECLINES THE BUNDESBANK'S REPORT OF RAPID M3 MONEY SUPPLY GROWTH DASHED HOPES THAT IT WOULD CUT KEY INTEREST RATES YESTERDAY THE M3 MEASURE GREW AT AN ANNUALIZED 73 CLIP IN APRIL WELL ABOVE ECONOMISTS' FORECASTS OF AROUND 5 AND ABOVE THE CENTRAL BANK'S 4565 TARGET RANGE ALTHOUGH THE BUNDESBANK DID LEAVE RATES UNCHANGED YESTERDAY SOME ANALYSTS STILL THINK THE CENTRAL BANK MAY CUT RATES IN COMING WEEKS TO HELP BOLSTER GERMANY'S WEAK ECONOMY PRICES OF FRENCH TREASURY BONDS ENDED SLIGHTLY LOWER HURT BY THE WEAKNESS IN THE GERMAN MARKET IN ZURICH SWISS BONDS FINISHED LITTLE CHANGED TO SLIGHTLY LOWER BUT BRITISH GOVERNMENT BONDS POSTED MODERATE GAINS MUNICIPAL BOND PRICES GENERALLY POSTED MODERATE GAINS AFTER TUMBLING IN THE MORNING STATE AND LOCAL GOVERNMENT BOND PRICES LATER REVERSED DIRECTION AFTER GOLD PRICES RETREATED THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY'S 550 REVENUE REFUNDING BONDS OF 2021 WERE QUOTED LATE IN THE DAY AT 95 1/4 BID UP HALF A POINT FROM THE PREVIOUS DAY TO YIELD 583 A LARGE VOLUME OF ISSUES HAS HIT THE MARKET THIS WEEK MORE THAN 3 BILLION OF SECURITIES WERE PRICED TUESDAY AND SUPPLY EXCEEDING 1 BILLION WAS BROUGHT TO THE MARKET YESTERDAY ACCORDING TO DOW JONES CAPITAL MARKETS REPORT PEOPLE ARE WORRIED ABOUT YIELDS GOING HIGHER AND THUS THEY'RE HURRYING TO HAVE THEIR NEW OFFERINGS PRICED SAID STANLEY CIEMNIECKI MANAGER OF NATIONAL UNDERWRITING AT LEHMAN BROTHERS BORROWERS PROVIDED A FLURRY OF NEW INVESTMENTGRADE ISSUES YESTERDAY WHICH INCLUDED A RARE 50YEAR DEAL BY RAILROAD SHIPPING CONCERN CONSOLIDATED RAIL CORP SEASONED INVESTMENTGRADE BONDS ENDED SLIGHTLY HIGHER WITH LONGERTERM ISSUES UP 1/4 TO 3/8 POINT LARGELY IN LOCKSTEP WITH TREASURY BONDS IN THE BROADER JUNK MARKET MOST BONDS ENDED UNCHANGED AFTER OPENING LOWER INSTITUTIONAL TRADING WAS QUIET THOUGH THERE WAS SOME ACTIVITY INVOLVING SMALLER INVESTORS CONRAIL'S 50YEAR OFFERING WHICH CANNOT BE CALLED BY THE BORROWER PRIOR TO MATURITY SURPRISED A NUMBER OF INVESTORS AND SYNDICATE OFFICIALS IT CAME LESS THAN A WEEK AFTER A STRING OF ECONOMIC REPORTS SPURRED RENEWED INFLATION FEARS WHEN INFLATION IS THOUGHT TO BE RISING INVESTORS ARE LESS LIKELY TO BUY LONGERDATED ISSUES WHICH ARE MORE SENSITIVE TO INFLATION BUT ONE UNDERWRITER NOT INVOLVED IN THE DEAL SAID CONRAIL'S OFFER SEEMS TO HAVE WORKED THE SIZE OF THE DEAL WAS INCREASED TO 250 MILLION FROM 200 MILLION WE VIEWED THIS AS A UNIQUE OPPORTUNITY IT'S ALMOST EQUITY IN OUR VIEW SAID CONRAIL'S TREASURER JOHN MCKELVEY I'VE NEVER SEEN SUCH A CHEAP SOURCE OF LONGTERM CAPITAL HE SAID NOTING THAT CONRAIL WILL PAY LESS THAN 5 ON AN AFTERTAX BASIS FOR THE 50YEAR MONEY PRICES OF MORTGAGE SECURITIES RALLIED ALONG WITH TREASURY PRICES IN SECONDARY TRADING CURRENT 30YEAR COUPONS FOR JUNE DELIVERY GAINED 11/32 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FINISHED AT 100 FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 ISSUES FINISHED AT 100 13/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ENDED AT 100 8/32 MOST BUYING WAS LIMITED TO DEALERS TRYING TO SECURE COLLATERAL FOR REALESTATE MORTGAGE INVESTMENT CONDUITS TRADERS SAID SUPPLY WAS DIFFICULT TO FIND STRIP MORTGAGESECURITY PRICES GAINED FROM 1 TO 1 1/2 POINTS ESPECIALLY THOSE TRUSTS BACKED BY CURRENT COUPONS STRIP TRADERS REPORTED BRISK VOLUME OVER THE PAST TWO SESSIONS MORE STRIP SUPPLY HIT THE MARKET AS TWO NEW FANNIE STRIP TRUSTS AND AN INCREASE IN FANNIE MAE SMBS 222 WERE ANNOUNCED FREDDIE MAC ANNOUNCED A 600 MILLION REMIC AND TWO FANNIE MAE REMICS WERE INCREASED A TOTAL OF 800 MILLION 9305200012 930520 BUSINESS BRIEF BALTIMORE BANCORP FOR SALE CHIEF SAYS PRICE OF STOCK JUMPS BALTIMORE BALTIMORE BANCORP'S CHAIRMAN EDWIN HALE SR TOLD SHAREHOLDERS AT THE ANNUAL MEETING THAT THE BANK IS FOR SALE IF A LEGITIMATE COMPANY COMES IN TO ACQUIRE US BUT WE ARE NOT GOING TO BE BOTTOMFISHED MR HALE SAID THAT HE WOULD CONSIDER AN OFFER OF 125 TO 165 TIMES BOOK VALUE TO BE A FAIR OFFER SUBJECT TO SHAREHOLDER APPROVAL HE NOTED THAT AT TUESDAY'S CLOSING PRICE OF 725 A SHARE HE CONSIDERS THE COMPANY'S STOCK A BARGAIN I JUST BOUGHT ANOTHER 100000 WORTH LAST WEEK MR HALE MADE HIS COMMENTS IN RESPONSE TO A SHAREHOLDER QUESTION INVESTORS APPARENTLY LIKED THEM BALTIMORE BANCORP SHARES WERE QUOTED YESTERDAY AT 850 UP 125 IN LATE NEW YORK STOCK EXCHANGE TRADING BALTIMORE BANCORP'S BOOK VALUE WAS 961 A SHARE AT MARCH 31 THAT SUGGESTS THE COMPANY WOULD CONSIDER AN OFFER BETWEEN 1201 AND 1586 TO BE FAIR MR HALE SAID THE COMPANY HOPES TO BE ABLE TO REINSTATE A COMMON STOCK DIVIDEND BY EARLY OR MID1994 PRIOR TO REINSTATING THE DIVIDEND HE SAID THE COMPANY MUST HIT ITS CAPITAL TARGETS OF A 10 TOTAL RISKBASED CAPITAL RATIO AND A 65 LEVERAGE CAPITAL RATIO THE COMPANY HOPES TO DO THAT BY THIS SUMMER AHEAD OF ITS REGULATORY REQUIREMENT OF JUNE 30 1994 THE COMPANY ALSO NEEDS TO REDUCE ITS NONPERFORMING ASSETS AND HAVE FEDERAL REGULATORS LIFT A CEASEANDDESIST ORDER FILED AGAINST IT LAST YEAR BEFORE IT CAN REINSTATE A DIVIDEND MR HALE SAID THE COMPANY HASN'T PAID A DIVIDEND SINCE OCTOBER 1991 NONPERFORMING ASSETS STOOD AT 2073 MILLION AT THE END OF THE FIRST QUARTER DOWN SLIGHTLY FROM 2081 MILLION AT THE END OF 1992 THAT FIGURE HAS SINCE BEEN REDUCED TO 195 MILLION AND BALTIMORE BANCORP HOPES TO PARE THAT TO 150 MILLION BY THE END OF THIS YEAR AT THE MEETING BALTIMORE BANCORP SHAREHOLDERS VOTED DOWN FOR THE SECOND CONSECUTIVE YEAR A PROPOSAL TO ELIMINATE SUPERMAJORITY VOTING REQUIREMENTS FOR REMOVAL OF A DIRECTOR 9305200011 930520 FINANCING BUSINESS GLAMIS GOLD LTD GLAMIS GOLD LTD VANCOUVER BRITISH COLUMBIA THIS GOLD MINING COMPANY SAID IT AGREED WITH UNDERWRITER LOEWEN ONDAATJE MCCUTCHEON LTD TO ISSUE 1250000 COMMON SHARES FOR PRIVATE PLACEMENT AT US8625 A SHARE THE TRANSACTION WILL INCREASE THE NUMBER OF SHARES OUTSTANDING TO ABOUT 22 MILLION FROM 207 MILLION ASSUMING THE EXECUTION OF A RECENT ISSUE OF WARRANTS FOR TWO MILLION ADDITIONAL SHARES GLAMIS CLOSED YESTERDAY AT 825 DOWN 625 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID THE GROSS PROCEEDS OF 108 MILLION WILL BE USED TO BUY GOLD PROPERTIES AND FOR WORKING CAPITAL 9305200010 930520 FINANCING BUSINESS GENCARE HEALTH SYSTEMS INC GENCARE HEALTH SYSTEMS INC SHAREHOLDERS AT THE ANNUAL MEETING APPROVED THE DOUBLING OF AUTHORIZED COMMON SHARES TO 30 MILLION THE ST LOUISBASED OPERATOR OF MANAGED HEALTHCARE PLANS WHICH HAS 107 MILLION COMMON SHARES OUTSTANDING SAID THE INCREASE WOULD PROVIDE IT WITH THE FLEXIBILITY TO ISSUE COMMON STOCK IN CONNECTION WITH STOCK SPLITS ACQUISITIONS FINANCINGS EMPLOYEE BENEFITS AND OTHER GENERAL CORPORATE PURPOSES 9305200008 930520 THE POW DRAMA NEEDED AUTHENTICATION COMMISSION BY GEORGE A CARVER JR PRESIDENT CLINTON SHOULD IMMEDIATELY LAUNCH A COMMISSION TO DETERMINE WHETHER THE DOCUMENT UNEARTHED BY HARVARD RESEARCHER STEPHEN MORRIS PURPORTEDLY A RUSSIAN TRANSLATION OF A 1972 BRIEFING IN WHICH A VIETNAMESE GENERAL TOLD NORTH VIETNAM'S POLITBURO THAT 1205 AMERICAN POWS WERE THEN IN NORTH VIETNAMESE PRISONS IS BASED ON AN AUTHENTIC VIETNAMESE ORIGINAL OR ON A FORGERY HERE ARE A FEW ESSENTIALS THE EFFORT SHOULD BE CONDUCTED BY A SMALL TEAM OF PEOPLE AT LEAST TWO OF WHOM ARE LINGUISTS COMPETENT IN VIETNAMESE AND ALL OF WHOM KNOW A GOOD DEAL ABOUT VIETNAM ARE FAMILIAR WITH VIETNAMESE COMMUNIST TERMINOLOGY AND ORGANIZATIONAL STRUCTURE HAVE SOLID EXPERIENCE IN CONDUCTING DETAILED SCHOLARLY RESEARCH AND ARE WILLING TO APPROACH THIS TASK WITH COLDEYED OBJECTIVITY THE COMMISSION SHOULD SEEK RUSSIAN AND VIETNAMESE ASSISTANCE BUT THE FRUITS OF THIS ASSISTANCE SHOULD BE REGARDED AND USED WITH A MEASURE OF CIRCUMSPECTION ON THE HIGHLY CHARGED SUBJECT OF AMERICAN POWS IN INDOCHINA THE RUSSIANS HAVE AXES TO GRIND AND THE VIETNAMESE HAVE EVEN MORE THE VIETNAMESE COMMUNISTS FURTHERMORE REGARD DISSEMBLING IN THE INTERESTS OF THE COMMUNIST PARTY AS NOT EVEN A VENIAL SIN THE AUTHENTICATION COMMISSION SHOULD OF COURSE TRY TO GET HOLD OF THE VIETNAMESE ORIGINAL ON WHICH THE MORRIS DOCUMENT IS PURPORTEDLY BASED A TASK IN WHICH THE RUSSIANS ARE MORE LIKELY TO BE HELPFUL THAN THE VIETNAMESE MR MORRIS SHOULD BE ASKED TO GIVE A DETAILED ACCOUNT OF WHERE HE FOUND THE ALLEGED RUSSIAN TRANSLATION EG IN WHAT ROOM AND WHAT FILE OF WHAT ARCHIVE UNDER WHAT LABEL AND WITH WHAT OTHER DOCUMENTS IF ANY THE ANSWERS TO THESE QUESTIONS WILL NOT BE DEFINITIVE BUT MAY SHED LIGHT ON THE AUTHENTICITY AND ORIGINS OF THE DOCUMENT IN QUESTION THE COMMISSION MUST PURSUE ALL LEADS FOR EXAMPLE IN AN APRIL WASHINGTON POST OPED PIECE THE VIETNAMESE KNOW HOW TO COUNT MR MORRIS SAYS THE FORMER HEAD OF SOVIET MILITARY INTELLIGENCE PYTOR IVASHUTIN SIGNED AN EXECUTIVE SUMMARY OF THE DOCUMENT FOR THE SOVIET COMMUNIST PARTY'S CENTRAL COMMITTEE IN NOVEMBER 1972 A SPECIAL REPORT FOR THE SOVIET POLITBURO BASED ON THIS DOCUMENT WAS ALSO ORDERED BY THEN HEAD OF THE RELEVANT CENTRAL COMMITTEE DEPARTMENT KONSTANTIN KATUSHEV WITH MR MORRIS'S ASSISTANCE THE AUTHENTICATION COMMISSION SHOULD ENDEAVOR TO GET A COPY OF THAT EXECUTIVE SUMMARY FROM THE RUSSIANS IT SHOULD ALSO ENDEAVOR TO SEE GEN IVASHUTIN IF HE IS STILL ALIVE AND ASK HIM WHAT HE RECALLS ABOUT THIS 1972 DOCUMENT EG WHO DID THE TRANSLATION HOW DID THE DOCUMENT COME INTO RUSSIAN HANDS WHAT WAS ITS SOURCE ETC A SIMILAR EFFORT SHOULD BE MADE TO INTERVIEW KONSTANTIN KATUSHEV IF HE IS STILL ALIVE ASK HIM WHAT HE REMEMBERS ABOUT THE SPECIAL REPORT HE PREPARED AND IF POSSIBLE GET A COPY OF THAT REPORT THE COMMISSION SHOULD IMMEDIATELY INITIATE A THOROUGH SEARCH OF THE INDOCHINA ARCHIVES AT BERKELEY PLUS ALL THE FILES AND ARCHIVES OF THE LIBRARY OF CONGRESS STATE DEPARTMENT DEFENSE DEPARTMENT AND THE INTELLIGENCE COMMUNITY FOR ALL INFORMATION AVAILABLE ON GEN QUANG THE MAN WHO IS ALLEGED TO HAVE GIVEN THE BRIEFING AND PARTICULARLY FOR EVERY SCRAP OF INFORMATION BEARING ON WHAT HE WAS OR MIGHT HAVE BEEN DOING IN 1972 AND 1973 OUR GERMAN ALLIES SHOULD BE ASKED TO SEARCH EAST GERMAN ARCHIVES FOR ANY INDICATION OF GEN QUANG'S EVER HAVING BEEN IN EAST GERMANY FOR MEDICAL TREATMENT IN 1973 AS HE CLAIMS OR FOR ANY OTHER REASON THE US SHOULD INSIST THAT THE VIETNAMESE MAKE AVAILABLE FOR DETAILED INDEPENDENT INSPECTION BY AMERICAN LINGUISTS NOT BEHOLDEN IN ANY WAY TO THE VIETNAMESE ALL THE RECORDS OF THE ENEMY PROSELYTIZING DEPARTMENT THE PRINCIPAL VIETNAMESE AGENCY RESPONSIBLE FOR FOREIGN PRISONERS THE VIETNAMESE NOW CLAIM THAT THESE RECORDS VERY CONVENIENTLY WERE RECENTLY DESTROYED IN A FIRE THE VIETNAMESE AND PARTICULARLY THE VIETNAMESE COMMUNISTS HOWEVER ARE AMONG THE WORLD'S GREATEST BUREAUCRATS AND MOST METICULOUS KEEPERS OF RECORDS IT IS UNLIKELY THAT THERE IS NOT AT LEAST ONE DUPLICATE SET OF THESE DESTROYED RECORDS STASHED SOMEWHERE IN THE NORTHERN PART OF VIETNAM SEE RELATED ARTICLE VIETNAM THE UNFINISHED BUSINESS WSJ MAY 20 1993 9305200007 930520 LETTERS TO THE EDITOR NICARAGUA'S VICTORY OVER THE PAST REGARDING YOUR APRIL 26 EDITORIAL ON NICARAGUA TALE OF TWO NATIONS YOU KEEP COMPARING NICARAGUA AND EL SALVADOR AS IF THE SITUATION FACING BOTH COUNTRIES WERE SIMILAR IT IS NOT IN EL SALVADOR THERE WAS A PEACE ACCORD SIGNED BY THE CONFLICTING PARTIES WITH STRONG ASSISTANCE AND SUPPORT FROM THE UNITED NATIONS UN PRESENCE CONTINUES TO BE A STABILIZING INFLUENCE IN NICARAGUA THERE WAS NO PREVIOUS PEACE AGREEMENT AND WE HAVE HAD TO FASHION OUR OWN PEACE PROCESS FOLLOWING THE DEMOCRATIC ELECTION OF PRESIDENT VIOLETA CHAMORRO ON FEB 25 1990 NICARAGUA IS NOW THE ONLY COUNTRY IN THIS HEMISPHERE MAKING A SIMULTANEOUS TRANSITION TO A PEACE FROM THE DEVASTATION OF WAR B A FUNCTIONAL AND IRREVERSIBLE DEMOCRACY FROM A FAILED TOTALITARIAN EXPERIENCE AND C A MARKET ECONOMY FROM A CENTRALLY PLANNED AND REGULATED ECONOMY AND NICARAGUA IS DOING THIS AS THE POOREST COUNTRY IN THE HEMISPHERE CONTRARY TO YOUR IMPLICATIONS AMERICAN AID HAS BEEN HEAVILY AUDITED BY THE US GOVERNMENT ACCORDING TO AN AUGUST 1992 US GENERAL ACCOUNTING OFFICE REPORT THE AID HAS BEEN WELL SPENT THE REPORT SAYS US ASSISTANCE HAS SERVED THE CURRENT INTERESTS OF THE UNITED STATES BY SUPPORTING ECONOMIC STABILIZATION AND REFORM IN NICARAGUA THE HEAD OF THE US AGENCY FOR INTERNATIONAL DEVELOPMENT MISSION IN NICARAGUA JANET BALLANTYNE SAID ON MARCH 24 THAT US AID HAS BEEN PROPERLY USED EVERY TIME SOMEONE IMPLIES THAT US FUNDS HAVE BEEN IMPROPERLY USED OR DIVERTED I INVITE THEM TO COME TO OUR OFFICES IN MANAGUA AND LOOK AT OUR COMPUTER SYSTEM WE KNOW EXACTLY HOW EVERY DOLLAR HAS BEEN SPENT SHE SAID HERE IS EVIDENCE OF OUR PROGRESS MILITARY REFORM THE CHAMORRO ADMINISTRATION HAS REDUCED THE ARMY FROM THE LARGEST TO THE SMALLEST IN CENTRAL AMERICA 98000 TO 15200 MEN THE ARMY'S ANNUAL BUDGET HAS BEEN CUT FROM 177 MILLION TO 365 MILLION IN THE NEXT FEW WEEKS THE PRESIDENT WILL PRESENT TO THE NATIONAL ASSEMBLY A LEGISLATION ON PROFESSIONALIZATION OF THE ARMED FORCES THAT WILL ESTABLISH AMONG OTHER THINGS TERM LIMITS FOR SENIOR OFFICERS INCLUDING GEN HUMBERTO ORTEGA RETURN OF CONFISCATED PROPERTIES OF 350 ENTITIES NATIONALIZED BY THE SANDINISTA REGIME 237 HAVE ALREADY BEEN PRIVATIZED AND THE REST WILL BE BY THE END OF THIS YEAR OF 5400 CLAIMS 2000 ARE EXPECTED TO BE RESOLVED BY THE END OF 1993 THE NICARAGUAN GOVERNMENT IS TARGETING THE REVIEW OF ALL DISPUTED PROPERTIES BY THE END OF 1994 HUMAN RIGHTS AT THE REQUEST OF OUR GOVERNMENT SCOTLAND YARD RECENTLY SENT A TEAM OF EXPERTS TO ASSIST IN SOLVING THE MURDER OF COL ENRIQUE BERMUDEZ A FORMER NICARAGUAN RESISTANCE LEADER WE ARE AWAITING THE RESULTS OF THIS INVESTIGATION ON OCTOBER 1992 AT THE BEHEST OF THE NICARAGUAN GOVERNMENT THE TRIPARTITE COMMISSION WITH REPRESENTATIVES FROM THE GOVERNMENT CARDINAL OBANDO'S COMMISSION AND THE ORGANIZATION OF AMERICAN STATES WAS ESTABLISHED THEIR RECOMMENDATIONS ON THE FIRST 10 CASES OF VIOLENT DEATH SINCE THE CIVIL WAR ENDED HAVE BEEN ACCEPTED BY THE GOVERNMENT WITHOUT RESERVATIONS AND ARE BEING IMPLEMENTED 15 POLICE OFFICERS IDENTIFIED BY THE REPORT HAVE BEEN SUSPENDED PENDING INVESTIGATION OF ALLEGED HUMAN RIGHTS VIOLATIONS ECONOMIC REFORMS NICARAGUA HAS REDUCED THE ANNUAL INFLATION RATE FROM 55000 AT THE END OF THE PAST DECADE TO 5 STABILIZED THE CURRENCY REPAID INTERNATIONAL DEBTS AND IS TRANSFORMING A STATECONTROLLED ECONOMY TO A FREEMARKET SYSTEM SEVEN PRIVATE BANKSNOT ALLOWED TO FUNCTION BEFOREHAVE BEEN ESTABLISHED SINCE APRIL 1990 AND A PROPER PROCEDURE FOR COMPENSATING UNJUSTLY CONFISCATED PROPERTY CLAIMANTS HAS BEEN ESTABLISHED INCLUDING AN ARBITRATION PROCEDURE ESTABLISHED IN MARCH 1993 MANY US CITIZENS AS WELL AS NATIONALS FROM OTHER COUNTRIES HAVE ALREADY SETTLED THEIR CLAIMS YOU STATE THAT NICARAGUA IS CHOKING ON ITS SANDINISTA LEGACY THEN YOU SUGGEST THE REMEDY CHOKE NICARAGUA SOME MORE HOW IS THAT LOGICAL WE ARE TRYING HARD TO OVERCOME THIS LEGACY AND ESTABLISH THE BASIS OF A NEW AND DEMOCRATIC NICARAGUA TO ACCOMPLISH THAT DURING THIS VERY DIFFICULT TRANSITION PERIOD WE NEED BOTH THE UNDERSTANDING AND SUPPORT OF THE AMERICAN PEOPLE AND GOVERNMENT AS WELL AS THAT OF THE INTERNATIONAL COMMUNITY WE NEED TIME AND RESOURCES PATIENCE AND TRUST NO OTHER EDITORIALS EXPLAIN SO ACCURATELY THE TRUTH ABOUT THE SITUATION IN NICARAGUA AND EL SALVADOR AS THOSE IN THE WALL STREET JOURNAL CONGRATULATIONS ON YOUR EXCELLENT REPORTING AND FOR BEING SO WELL INFORMED 9305200006 930520 GM'S NEW TOP MANAGEMENT PREPARES TO ISSUE FIRST FORMAL PROGRESS REPORT BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S DIRECTORS HAD JUST BET THE COMPANY LAST NOVEMBER ON PRESIDENT JOHN F SMITH JR AND FOUR MAVERICK EXECUTIVES WHEN ONE OF THEM LOUIS R HUGHES PUT THE MOMENT IN FOCUS I HOPE YOU ALL KNOW WHAT YOU'RE DOING MR HUGHES BLURTED OUT AS THE NEW TEAM WAS INTRODUCED TO THE BOARD MANY GM SHAREHOLDERS MAY ASK THE SAME QUESTION IN OKLAHOMA CITY TOMORROW AT THE ANNUAL MEETING THE FIRST FORMAL PROGRESS REPORT FROM GM'S NEW LEADERS WHO ALL DISDAIN GM'S TRADITIONAL METHODS MR SMITH AND THE FOUR MEMBERS OF HIS PRESIDENT'S COUNCIL ARE BEING STRETCHED THIN SOME SAY TOO THIN IN THEIR ATTEMPT TO TURN GM AROUND ALL HAVE MULTIPLE RESPONSIBILITIES DESPITE THEIR EFFORTS THOUGH THE TROUBLED AUTO GIANT STILL ISN'T UP TO SPEED THERE'S NO DENYING THE PROGRESS SO FAR MR SMITH'S TEAM LED GM TO PROFITABILITY IN THE FIRST QUARTER FOR THE FIRST TIME IN 2 1/2 YEARS I'M VERY HIGH ON JACK SMITH SAYS DALE HANSON CHIEF EXECUTIVE OFFICER OF THE 75 BILLION CALIFORNIA PUBLIC EMPLOYEE RETIREMENT SYSTEM HE'S DOING THE RIGHT THINGS BUT GM IS JUST GETTING STARTED THE COMPANY LOST MORE THAN 10 BILLION IN ITS HUGE NORTH AMERICAN VEHICLE OPERATIONS IN THE PAST TWO YEARS E MICHAEL MUTCHLER HEAD OF GM'S MONEYLOSING DOMESTIC PASSENGER CAR OPERATIONS SAID IN AN INTERVIEW THIS WEEK THAT IT'S POSSIBLE GM WILL BREAK EVEN THIS YEAR BEFORE INTEREST AND TAXES ON DOMESTIC PASSENGER CAR SALES CLIFFORD J VAUGHAN HEAD OF DOMESTIC TRUCK OPERATIONS SAID HE TOO EXPECTS BREAKEVEN OR BETTER PERFORMANCE BUT GM CAN'T SUCCEED BY JUST BREAKING EVEN ON 80 BILLION IN REVENUE THAT'S WHY GM IS QUIETLY DEVELOPING PLANS TO REDUCE ITS HOURLY WORK FORCE BY 72000 MORE EMPLOYEES TO ABOUT 200000 BY THE LATE 1990S AS PART OF AN EFFORT TO MAKE ITS FACTORIES AS EFFICIENT AS THOSE OF FORD MOTOR CO GM SAYS PUBLICLY ONLY THAT IT PLANS TO CUT ITS HOURLY WORK FORCE TO 250000 PEOPLE BY 1995 GM ALSO WILL CLOSE OR SELL 22 NORTH AMERICAN FACTORIES AND SLASH THE NUMBER OF DIFFERENT CAR CHASSIS IT BUILDS BUT MOST OF THESE CUTS HAVEN'T OCCURRED YET IN FACT GM WILL ADD A NEW LUXURY CAR CHASSIS NEXT SPRING GM STILL IS STRUGGLING WITH A COMPLEX PRODUCT DEVELOPMENT PROCESS IN WHICH SEVEN MARKETING DIVISIONS FIVE ENGINEERING GROUPS A DESIGN STAFF AND A NEW VEHICLE LAUNCH CENTER ALL WANT A HAND IN SHAPING NEW CARS MR MUTCHLER SAYS INTERNAL TURF CONFLICTS ARE OVER AND THAT 600 TO 800 PEOPLE ARE MOVING TO THE LAUNCH CENTER TO SEE TO IT THAT FUTURE GM VEHICLES HAVE SIMPLER DESIGNS MORE SHARED PARTS AND LOWER ASSEMBLY COSTS MEANWHILE THOUGH GM IS RUSHING TO MARKET THINGS CHRYSLER HAS OUT ALREADY SAYS SG WARBURG & CO ANALYST DAVID HEALY IN THE LONG RUN MR SMITH ACKNOWLEDGES HE AND HIS TEAM WILL HAVE TO DO MORE AND GET MORE HELP WHEN YOU GET SET WITH THE TOP LEADERSHIP MR SMITH SAYS THAT'S ONLY THE TIP OF THE ICEBERG BUT MR SMITH WHO HOLDS DOWN TWO HUGE JOBS HIMSELF AS CHIEF EXECUTIVE OFFICER AND HEAD OF THE UNPROFITABLE NORTH AMERICAN OPERATIONS BRUSHES OFF QUESTIONS ABOUT OVERWORK WE'RE ASKING GUYS TO CARRY A BIGGER LOAD MR SMITH SAID DURING A RECENT APPEARANCE AT THE NEW YORK AUTO SHOW WE'RE RUNNING MULTIPLE RESPONSIBILITIES THAT'S HEALTHY IN A WAY BUT CONSIDER THE LOAD ON CHIEF FINANCIAL OFFICER G RICHARD WAGONER 40 YEARS OLD WHO UNTIL LAST FALL WAS HEAD OF GM'S BRAZILIAN OPERATIONS AS FINANCE CHIEF MR WAGONER IS PUSHING TO STANCH THE WASTE IN GM'S NEWPRODUCT SPENDING WE WERE THE CHAMPIONS OF CAPITAL SPENDING IN THE 1980S MR WAGONER SAID AT A RECENT NEWS CONFERENCE THAT DIDN'T EXACTLY YIELD THE RESULTS WE WANTED BUT MR WAGONER NOW HAS ANOTHER BIG JOB THANKS TO THE DEFECTION TO VOLKSWAGEN AG OF WORLDWIDE PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA LAST MONTH MR SMITH NAMED MR WAGONER TO PICK UP MR LOPEZ'S PORTFOLIO AS GM'S COSTCUTTER IN CHIEF MR WAGONER JOKES THAT GM PURCHASING MANAGERS NOW MAY EAT TWINKIES AGAIN SOMETHING MR LOPEZ HAD BANISHED UNDER HIS STRINGENT HEALTHFOOD DIET BUT KIDDING ASIDE MR WAGONER MUST ACHIEVE MR LOPEZ'S GOAL OF CUTTING 38 BILLION FROM GM'S PURCHASING BILL BY THE END OF THIS YEAR AT THE SAME TIME HE MUST EASE THE HOSTILITY CAUSED WHEN MR LOPEZ RIPPED UP SUPPLIER CONTRACTS LAST YEAR MR WAGONER SAYS HE'S COMFORTABLE WITH HIS TWO JOBS BUT OTHERS AREN'T AS SANGUINE A COMPANY IN OUR POSITION NEEDS A STRONG CFO AND A STRONG PURCHASING GUY SAYS ONE GM EXECUTIVE WE DON'T HAVE TWO SUCH PEOPLE MR SMITH ALSO DOESN'T HAVE TWO OF MR HUGHES THE 44YEAROLD EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS WITH WHOM HE HAS A FRIENDSHIP GOING BACK TO THE MID1970S AS HEAD OF GM'S EUROPEAN OPERATIONS MR HUGHES MUST GUARD A KEY SOURCE OF CASH AGAINST THE DEEP EUROPEAN SALES SLUMP HE IS INTENSIFYING HIS CAMPAIGN TO CONVINCE GM'S GERMAN UNIONS TO EMBRACE JAPANESESTYLE LEAN PRODUCTION METHODS LAST YEAR MR HUGHES FACED DOWN 10000 ANGRY WORKERS AT GM'S ADAM OPEL AG SUBSIDIARY WITH A 45MINUTE SERMON ON THE JAPANESE CHALLENGE DELIVERED IN GERMAN HE HAS STAKED HIS PERSONAL CREDIBILITY ON A LEAN PRODUCTION ASSEMBLY PLANT OPEL IS LAUNCHING IN EISENACH IN EASTERN GERMANY THIS REVOLUTION HAS TO BE LED NOT IN BOARDROOMS NOT ON WALL STREET SAYS MR HUGHES WHO SPENT A WEEK ON AN ASSEMBLY LINE LEARNING LEAN PRODUCTION METHODS AND JOINED EISENACH WORKERS IN THEIR TRAINING SESSIONS THE MANAGEMENT HAS TO GET OUT ON THE FACTORY FLOOR BUT MR HUGHES DISAVOWS ANY DESIRE TO LEAD GM'S NORTH AMERICAN OPERATIONS SO TO HELP LEAD CHANGE IN THE US MR SMITH IS RELYING HEAVILY ON EXECUTIVE VICE PRESIDENTS WILLIAM E HOGLUND AND HARRY J PEARCE WHO IS ALSO GENERAL COUNSEL THE UNDERSTATED MR PEARCE A 50YEAROLD FORMER TRIAL LAWYER FROM NORTH DAKOTA VAULTED INTO PROMINENCE WITH HIS AGGRESSIVE DEFENSE OF GM'S 19731987 PICKUP TRUCKS FEDERAL REGULATORS WANT GM TO RECALL SOME 47 MILLION OF THESE TRUCKS ARGUING THAT THE TRUCKS' SIDEMOUNTED FUEL TANKS POSE A FIRE HAZARD BUT THE PICKUP CONTROVERSY IS DIVERTING MR PEARCE FROM HIS MANY OTHER DUTIES AS EXECUTIVE IN CHARGE OF THE BIG GM HUGHES ELECTRONICS CORP AND ELECTRONIC DATA SYSTEMS CORP UNITS HE MUST WRESTLE WITH HOW THESE TECHNOLOGY UNITS FIT WITH GM'S AUTO BUSINESS AND GM'S DIRECTORS WANT MR PEARCE TO HELP CHANGE A BUREAUCRACY STILL HAMSTRUNG BY TRADITIONS OF INTERSTAFF CONFLICT THAT CULTURAL CRUSADE IS ALSO A TASK FOR MR HOGLUND WHO AT 58 IS A DIRECTOR AND THE HIGHEST HOLDOVER FROM GM'S FORMER NORTH AMERICAN MANAGEMENT THE OUTGOING MR HOGLUND'S MAIN JOB HELP CHANGE THE MINDSETS OF MANAGERS IN GM'S DOMESTIC CAR OPERATIONS AS PART OF THAT EFFORT MR SMITH AND TOP NORTH AMERICAN EXECUTIVES ARE MOVING INTO A NEW OPEN OFFICE AT GM'S TECHNICAL CENTER COMPLEX IN WARREN MICH AND FOSTERING VIGOROUS DEBATES IN MEETINGS WHEN TOP EXECUTIVES GOT TOGETHER TO DISCUSS QUALITY RECENTLY THEY DID IT AT GM'S DETROITHAMTRAMCK MICH ASSEMBLY FACTORY AND GOT ADVICE FROM LINE WORKERS BUT MR SMITH AND OTHER SENIOR GM EXECUTIVES MINDFUL OF THE COMPANY'S PAST FAILURES TO MAKE GOOD ON PROMISES TO CHANGE ARE CAREFUL NOT TO BOAST TOO MUCH ON A SCALE OF ONE TO 10 WE ARE AT SEVEN OR EIGHT COMPARED TO 1992 SAYS MR MUTCHLER HEAD OF THE CAR OPERATIONS IF YOU LOOK AT EVERYTHING WE NEED TO GET DONE BY THE YEAR 2000 MAYBE WE'RE A THREE OR A FOUR 9305200005 930520 LEISURE & ARTS TV INSTANT MOVIE' ON WACO BEHIND THE SCENES AT THE ZOO BY DOROTHY RABINOWITZ THIS SEASON FINALE TAKES US TO THE MAKING OF A TV PILOT AND ACCOMPANYING DISASTERS THAT BEFALL THIS DOOMED UNDERTAKING FITTINGLY THIS CODA TO A SUCCESSFUL 39 WEEKS IS A SHOW FAIRLY REFLECTIVE OF THE SERIES' BEST FEATURES FOR ONE THING THE JERRY SEINFELD CHARACTER IS AS USUAL CONSIDERABLY MORE APPEALING THAN MR SEINFELD'S ACTUAL PUBLIC PERSONA WHICH HAS A MARKED TENDENCY TOWARD POMPOSITY AS USUAL TOO THE FEATURE OF THE SEINFELD LANDSCAPE THAT SHINES MOST BRIGHTLY AND THAT'S RESPONSIBLE FOR MOST OF SEINFELD'S COMIC VITALITY IS THE CHARACTER OF FRIEND GEORGE JASON ALEXANDER TONIGHT GEORGE SUFFERS CONVULSIONS OF ANXIETY OVER A SPOT ON HIS LIP AND OTHER HARBINGERS OF TERMINAL ILLNESS FATE HAS IN STORE TO PUNISH HIM FOR HIS SUCCESS BETWEEN BOUTS OF TERROR GEORGE INTREPIDLY TRACKS THE THEFT OF A BOX OF RAISINS THE SHOW'S HIGH POINT THERE'S BEEN A CURIOUS AMOUNT OF CRITICAL CARPING RECENTLY ABOUT THE MAY SWEEPS SEASON'S INDULGENCE IN FILMS ABOUT MURDER AND VIOLENCE LIKE THIS ONE THE FACTBASED SAGA OF FOUR DEVOTED DAUGHTERS CAUGHT UP IN THEIR FATHER'S MURDEROUS SCHEMES WHAT SORT OF MOVIE DO THOSE CRITICS THINK THE NETWORKS AIR THE REST OF THE YEAR REBECCA OF SUNNYBROOK FARM NATIONAL VELVET WHAT IS WORTH NOTING ABOUT THE SWEEPS IS THE PROLIFERATION OF MURDERFORINSURANCE MOVIES A LARGE IMPROVEMENT OVER THE MURDERBYBATTEREDWIVES WAVE OF RECENT YEARS THIS LATEST POLICYBOILER CHRONICLES THE HOMICIDAL DESIGNS OF A FATHER A BROODING ROBERT URICH WHO HITS UPON A WAY BOTH TO GET OUT OF FINANCIAL TROUBLE AND GET RID OF THE SONSINLAW HE DETESTS AS SUCH FILMS GO THIS ONE IS FAIR ENOUGH TILL A BIT PAST THE HALFWAY MARK AT WHICH POINT ITS GRIM INTRIGUE DEGENERATES INTO PLAIN SLOBBERING THIS DRAMATIZATION OF THE ENCOUNTER BETWEEN FEDERAL AGENTS AND THE BRANCH DAVIDIAN CULT WAS IN THE MAKING WELL BEFORE THE FINAL FIERY SIEGE THAT CONSUMED DAVID KORESH AND HIS FOLLOWERS CONCERNED ONLY WITH THE FIRST BLOODY CHAPTER OF THE STORY THE FILM TRACES THE BEGINNINGS OF THE DAVIDIANS' BATTLE WITH THE LAW AND ENDS WITH THE ILLFATED ATTACK FOR WHICH KORESH'S ARMY WAS PREPARED THAT KILLED FOUR AGENTS THERE IS A GOOD DEAL OF CENSURE MOST OF IT DESERVED NOW BEING DIRECTED AT WORKS LIKE THIS WHICH PARLAY REAL EVENTS INTO INSTANT MOVIES THAT DOESN'T ALTER THE FACT THAT THOSE FILMS OCCASIONALLY TURN OUT TO BE SUBSTANTIAL WORKS AS THIS ONE IS THIS MOSTLY SANE PIECE PATCHETT KAUFMAN ENTERTAINMENT IS NOTHING IF NOT TERRIFYINGLY CONVINCING IN ITS DEPICTION OF KORESH AND THE CONDITION OF HIS FOLLOWERS IN A FILM OF THIS SORT EVERYTHING DEPENDS ON AN AURA OF CREDIBILITY PRECISELY WHAT TIMOTHY DALY'S FIERCELY INTELLIGENT KORESH DELIVERS THIS SPLENDID DRAMATIZATION OF PAUL GALLICO'S STORY OF A TRIO OF PERFORMERS DOING THEIR BIT TO ENTERTAIN COMBAT TROOPS IN EUROPE IN WORLD WAR II FIRST AIRED IN 1978 THE TALENTLESS BUT AMBITIOUS VERNA SISSY SPACEK ENLISTS IN A MARGINALLY MORE TALENTED TROUPE CONSISTING OF EDDIE HOWARD DA SILVA AND MAUREEN SALLY KELLERMAN A DAZZLINGLOOKING YOUNGERTHANSPRINGTIME WILLIAM HURT IS ALSO ON HAND AS VERNA'S MILITARY SUITOR THE TELEPLAY BY ALBERT INNAURATO IS PLAIN BEAUTIFUL WHICH IS ALSO A FAIR DESCRIPTION OF THE PERFORMANCES ESPECIALLY IN MR DA SILVA'S AND MS KELLERMAN'S MUSICAL NUMBERS WHAT MR DA SILVA DOES WITH IT'S BEEN A LONG LONG TIME WILL REND YOUR HEART AS WILL VERNA'S FATE FREDERICK WISEMAN TAKES HIS CAMERAS TO THE MIAMI METROZOO WHERE 140 DIFFERENT SPECIES DWELL DEVOTED CARETAKERS ATTEND TO THE ANIMALS' EVERY NEED A CONSIDERABLE JOB THAT CAN RANGE FROM TUSSLING WITH SICK ALLIGATORS TO GIVING A GORILLA HIS YEARLY DENTAL CLEANING TO DEALING WITH WHAT REMAINS OF ZOO ANIMALS ATTACKED BY WILD DOGS SOME LITTLE OF THIS MAY NOT BE FOR EVERYONE THERE MUST BE A FAIR NUMBER OF PEOPLE FOR INSTANCE WHO WOULD RATHER NOT KNOW ABOUT THE BUNNIES BEING KILLED FOR THE BOA CONSTRICTORS' DINNER MR WISEMAN'S LENS MAY NOT DEPICT ZOO LIFE THROUGH ROSECOLORED GLASSES BUT WHAT IT DOES TAKE IN IS NONETHELESS A HEARTENING GLIMPSE OF THE BEST BESTIARY THAT MONEY CAN BUY 9305200004 930520 ECONOMY JOBLESS RATE MAY RISE AS US CHANGES METHODS OF MEASURING THE UNEMPLOYED BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE UNEMPLOYMENT RATE THE MOST VISIBLE OF ALL ECONOMIC STATISTICS MAY GO UP AT THE START OF NEXT YEAR NOT BECAUSE THE ECONOMY IS DETERIORATING BUT BECAUSE OF CHANGES IN THE WAY THE BUREAU OF LABOR STATISTICS TALLIES THE NUMBER OF JOBLESS WORKERS STARTING IN JANUARY THE BUREAU WILL USE A NEW QUESTIONNAIRE WHEN IT SURVEYS HOUSEHOLDS ON THE EMPLOYMENT SITUATION OFFICIALS SAY THE QUESTIONS WILL BE LESS AMBIGUOUS AND CUMBERSOME THAN THE CURRENT SURVEY THE DEPARTMENT ALSO WILL BEGIN USING A NEW COMPUTER PROGRAM TO TALLY THE RESPONSES THE CHANGES ARE EXPECTED TO PAINT A MORE ACCURATE PICTURE OF WHAT'S HAPPENING ON THE JOBS SCENE BUT THAT PICTURE MAY BE BLEAKER THAN THE OLD ONE WE THINK THAT THIS WILL GET US MUCH CLOSER TO THE TRUTH OF WHAT'S HAPPENING IN THE LABOR MARKET SAID THOMAS PLEWES ASSOCIATE COMMISSIONER OF LABOR STATISTICS BUT THERE IS SPECULATION THAT IT COULD INCREASE THE UNEMPLOYMENT RATE IF THE UNEMPLOYMENT RATE DOES GO UP AS A RESULT OF THE AGENCY'S CHANGES IT WOULDN'T MEAN THE ECONOMY HAS SUDDENLY GOTTEN WORSE HOWEVER IT WOULD INDICATE THAT THE DEPARTMENT HAS BEEN CONSISTENTLY UNDERESTIMATING THE NUMBER OF UNEMPLOYED PEOPLE IN APRIL THE LATEST FIGURES AVAILABLE THE UNEMPLOYMENT RATE HELD STEADY AT 7 THE CHANGE COULD SERVE AS ANOTHER EXAMPLE OF HOW THE RECASTING OF GOVERNMENT STATISTICS CAN CONFOUND MARKETS AND POLICYMAKERS JUST LAST WEEK THE FEDERAL RESERVE REVISED UPWARD ITS ESTIMATES OF CAPACITY UTILIZATION THAT GAVE ECONOMISTS A SLIGHTLY DIFFERENT PICTURE OF WHAT IS GOING ON IN THE ECONOMY MAKING IT APPARENT THAT THE ECONOMY HAS BEEN OPERATING CLOSER TO FULL CAPACITY THAN PREVIOUSLY THOUGHT ANALYSTS WORRY WHEN MANUFACTURERS OPERATE CLOSE TO FULL CAPACITY BECAUSE THAT LEADS TO PRODUCTION BOTTLENECKS AND HIGHER PRICES THE REVISIONS PLANNED FOR NEXT YEAR INVOLVE JUST THE BUREAU'S SURVEY OF HOUSEHOLDS AND WON'T CHANGE ITS SEPARATE FIGURES ON PAYROLLS TO COMPUTE THE UNEMPLOYMENT RATE THE BUREAU SURVEYS 60000 HOUSEHOLDS A MONTH TRADITIONALLY ITS INTERVIEWERS RECORD ANSWERS ON A SURVEY FORM UNDER THE NEW SYSTEM WHICH THE BUREAU HAS BEEN USING FOR 5000 SURVEYS SINCE JULY INTERVIEWERS WILL PUNCH RESPONSES INTO A COMPUTER WHICH INDICATES WHAT QUESTION SHOULD BE ASKED NEXT GIVEN THE RESPONSE THE DEPARTMENT HAS FOUND THAT RESPONSES TAKEN BY COMPUTER GENERATE A SLIGHTLY HIGHER UNEMPLOYMENT RATE ROUGHLY 05 PERCENTAGE POINT THAN THOSE THAT WERE TAKEN BY HAND ONE EXPLANATION FOR THE DIFFERENCE IS THAT COMPUTERS ARE VIRTUALLY ALWAYS CORRECT IN DETERMINING WHAT QUESTION TO ASK NEXT GIVEN THE PREVIOUS RESPONSE WHILE HARRIED INTERVIEWERS MAY ASK THE WRONG QUESTIONS ENOUGH TO DISTORT THE JOBS PICTURE THE 5000 SURVEYS CURRENTLY DONE BY COMPUTER AREN'T ENOUGH TO INCREASE THE OVERALL UNEMPLOYMENT RATE BUT THERE'S A CHANCE THAT WHEN ALL 60000 HOUSEHOLDS ARE QUESTIONED USING THE NEW COMPUTER PROGRAM THE RATE COULD BUMP UP IN ADDITION THE BUREAU SINCE LAST SUMMER HAS BEEN SURVEYING A GROUP OF HOUSEHOLDS USING A NEW QUESTION FORM THOSE RESPONSES ARE GATHERED USING COMPUTERS THAT SURVEY CURRENTLY ISN'T USED IN PREPARING THE MONTHLY EMPLOYMENT REPORT BUT BEGINNING IN JANUARY THE NEW QUESTIONNAIRE AND COMPUTERASSISTED REPORTING WILL BE THE SOLE WAY IN WHICH THE DEPARTMENT FIGURES THE UNEMPLOYMENT RATE THE NEW QUESTIONS ARE MEANT TO BE LESS CONFUSING THAN THE OLD ONES FOR EXAMPLE THE OLD SURVEY ASKS DID YOU DO ANY WORK AT ALL LAST WEEK NOT COUNTING WORK AROUND THE HOUSE THAT OFTEN LEAD RESPONDENTS TO DISCOUNT A PAYING JOB THEY DID FROM THEIR HOME OR INCLUDE VOLUNTEER WORK WHICH GENERATES NO INCOME THE NEW SURVEY WILL ASK INSTEAD LAST WEEK DID YOU WORK FOR ANY PAY OFFICIALS SAY IT'S IMPOSSIBLE TO TELL WHETHER USING THE NEW SURVEY ALONG WITH COMPUTERS WILL RESULT IN A HIGHER UNEMPLOYMENT RATE THERE HAVE BEEN WILD GYRATIONS IN A MONTHTOMONTH BASIS SO WE REALLY DON'T KNOW MR PLEWES SAID BUT SINCE OFFICIALS HAVE FOUND A CONSISTENTLY HIGHER UNEMPLOYMENT RATE WHEN COMPUTERS ARE USED WITH THE OLD SURVEY MANY ANALYSTS INSIDE THE LABOR DEPARTMENT PRIVATELY HAVE SAID THEY EXPECT THE RATE TO GO UP OFFICIALS SAID THEY SHOULD HAVE A BETTER HANDLE ON WHAT WILL HAPPEN TO THE UNEMPLOYMENT RATE UNDER THE NEW CIRCUMSTANCES BY FALL 9305200003 930520 FINANCING BUSINESS BALDWIN PIANO & ORGAN CO BALDWIN PIANO & ORGAN CO LOVELAND OHIO THE COMPANY SAID IT WILL OFFER 1250000 SHARES OF ITS COMMON STOCK THROUGH CERTAIN SELLING SHAREHOLDERS AT 1725 A SHARE THE COMPANY WON'T RECEIVE ANY PROCEEDS FROM THE 216 MILLION OFFERING CLEARY GULL REILAND & MCDEVITT INC OF MILWAUKEE IS ACTING AS MANAGING UNDERWRITER BALDWIN MAKES AND DISTRIBUTES KEYBOARD INSTRUMENTS AND PRINTED CIRCUIT BOARDS AND ELECTRONIC ASSEMBLIES 9305200002 930520 LAW LEGAL BEAT FOREIGNLANGUAGE LABELING SUIT WORRIES PHARMACEUTICAL MAKERS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL DRUG MAKERS ARE UP IN ARMS OVER A CALIFORNIA LAWSUIT THEY SAY COULD RESULT IN THEIR HAVING TO PUT FOREIGNLANGUAGE WARNING LABELS ON THEIR PRODUCTS THE CALIFORNIA SUPREME COURT HAS AGREED TO HEAR THE CASE AND INDUSTRY GROUPS SAY IT COULD HAVE IMPORTANT NATIONAL IMPLICATIONS FOR DRUG COMPANIES BECAUSE OF THE COST OF LABELING FILED AGAINST SCHERINGPLOUGH CORP THE CASE INVOLVES AN EIGHTYEAROLD WHO CONTRACTED REYE'S SYNDROME IN 1986 AFTER HE WAS TREATED WITH ASPIRIN THE RARE CHILDREN'S DISEASE HAS BEEN LINKED TO ASPIRIN AND THE PAINRELIEVER HAS CARRIED WARNINGS ABOUT THE ILLNESS SINCE 1985 THE CHILD'S MOTHER HOWEVER SPEAKS AND UNDERSTANDS ONLY SPANISH SO SHE WAS UNABLE TO HEED THE ENGLISH WARNING ON A BOTTLE OF SCHERINGPLOUGH'S ST JOSEPH ASPIRIN FOR CHILDREN ACCORDING TO COURT DOCUMENTS LAST FALL AN INTERMEDIATE APPELLATE COURT RULED THAT THE CASE COULD PROCEED AND SAID IT WAS UP TO A JURY TO DECIDE WHETHER THE NEW YORK COMPANY WAS NEGLIGENT IN NOT PRINTING THE WARNING IN SPANISH THE COURT NOTED CLAIMS BY THE PLAINTIFFS THAT THE COMPANY HAD MARKETED THE PRODUCT TO THE HISPANIC COMMUNITY SCHERINGPLOUGH APPEALED THE ISSUE IN THIS CASE GOES BEYOND WHETHER PHARMACEUTICAL PRODUCTS NEED TO HAVE FOREIGNLANGUAGE WARNINGS SAID KATHERINE D MCMANUS AN ATTORNEY FOR SCHERINGPLOUGH AT WASHINGTON LAW FIRM HOWREY & SIMON UNDER THE DECISION OF THE COURT OF APPEALS ANY MANUFACTURER WHO SELLS A PRODUCT IN THE STATE OF CALIFORNIA WOULD FACE POTENTIAL LIABILITY UNLESS THEY WARN IN ALL 148 LANGUAGES SPOKEN IN THE STATE SCHERINGPLOUGH ALSO MAINTAINS THAT NO SPANISHLANGUAGE MARKETING WAS BEING DONE WHEN THE CHILD WAS GIVEN THE ASPIRIN THE COMPANY DISPUTES WHETHER ITS BRAND OF ASPIRIN WAS GIVEN TO THE CHILD AND WHETHER ASPIRIN CAUSED THE CHILD'S QUADRIPLEGIA BLINDNESS AND MENTAL RETARDATION BOTH THE NONPRESCRIPTION DRUG MANUFACTURERS ASSOCIATION AND THE COSMETIC TOILETRY AND FRAGRANCE ASSOCIATION HAVE WEIGHED IN WITH BRIEFS ASKING THE STATE'S SUPREME COURT TO REVERSE THE LOWER APPELLATE DECISION A MULTILINGUAL LABELING REQUIREMENT WOULD BE PHYSICALLY IMPOSSIBLE TO SATISFY ON THE PACKAGES OF MANY PRODUCTS THE NONPRESCRIPTIONDRUG GROUP SAID IN ITS BRIEF THE ORGANIZATION MAINTAINS THAT MULTIPLE WARNINGS IN DIFFERENT LANGUAGES WOULD ACTUALLY DETRACT FROM THE SAFETY MESSAGE ATTORNEYS FOR THE FAMILY OF THE BOY JORGE RAMIREZ AND GROUPS OPPOSING THE COMPANIES HOWEVER SAY THE INDUSTRY IS EXAGGERATING THE IMPACT OF THE CASE THE INTERMEDIATE APPELLATE DECISION WOULDN'T REQUIRE WARNINGS IN ALL LANGUAGES LAWYERS FOR CIVILLIBERTIES AND HISPANIC GROUPS SAY INSTEAD THEY SAY THE DECISION WOULD ONLY REQUIRE COMPANIES TO PROVE IN PARTICULAR CASES THAT ENGLISHONLY WARNINGS WERE ADEQUATE RULING AGAINST THE RAMIREZ FAMILY HOWEVER WOULD RELEGATE NONENGLISH SPEAKING PEOPLE IN THE US TO SECONDCLASS STATUS THE AMERICAN CIVIL LIBERTIES UNION ARGUED IN A BRIEF SUPPORTING THE FAMILY BECAUSE IT WOULD DEPRIVE NONENGLISH SPEAKING PEOPLE OF THE PROTECTION OF NEGLIGENCE LAWS FOR LAW FIRMS 1993 IS SHAPING UP TO BE ANOTHER TROUBLESOME YEAR ACCORDING TO A NEW SURVEY THE STATISTICS WERE COMPILED BY THE NEWTOWN SQUARE PA LEGAL CONSULTING FIRM ALTMAN WEIL PENSA FOR THE NATIONAL ASSOCIATION OF LEGAL VENDORS IN THE YEARS BEFORE THE RECESSION MANY LAW FIRMS HAD EXPERIENCED UNPRECEDENTED RATES OF GROWTH IN REVENUE AND PROFIT JON KLEMENS AN ALTMAN WEIL PRINCIPAL AND NALV BOARD MEMBER SAID THE SURVEY RESULTS SHOW THAT THIS RECESSION HAS MADE A PERMANENT STRUCTURAL CHANGE IN THE LEGAL PROFESSION THE STUDY ALSO SHOWED HE SAID THAT FIRMS OVERALL ARE GETTING BETTER MANAGED AS A RESULT OF THE RECESSION AND DOWNSIZING FOR EXAMPLE THE SURVEY FOUND THAT LAW FIRMS WERE PUTTING A LID ON EXPANSION AND EXPENSES ALMOST 75 OF THE RESPONDENTS DON'T EXPECT THE NUMBER OF PARTNERS IN THEIR FIRMS TO INCREASE THIS YEAR AND 60 EXPECT THE NUMBER OF ASSOCIATES IN THEIR FIRMS TO REMAIN THE SAME OR GO DOWN MORE THAN 80 OF THE FIRMS SAID THEY HAVE NO PLANS TO HIRE ADDITIONAL NONLAWYER STAFF WORKERS FOR THE REST OF THE YEAR MEANWHILE MORE THAN HALF OF THE RESPONDENTS SAID THEY WOULD INCREASE THEIR EXPENDITURES ON COMPUTER AUTOMATION A SIGN THAT LAW FIRMS ARE MORE FOCUSED ON PRODUCTIVITY ACCORDING TO MR KLEMENS MORE THAN 40 SAID THEY WOULD INCREASE SPENDING ON MARKETING AND BUSINESS DEVELOPMENT MR KLEMENS SAID HE BELIEVES THE LEGAL PROFESSION IS STABILIZING AFTER A FEW ROCKY YEARS AND THAT HE WAS SEEING FEWER MASSIVE CUTS AND LAYOFFS THIS YEAR NEVERTHELESS HE PROJECTED THAT THE PROFESSION WOULD EXPERIENCE STATIC OR FLAT GROWTH IN THE NEXT THREE TO FIVE YEARS SOCIAL HOSTS AREN'T LIABLE FOR THE ACTIONS OF GUESTS WHO BECOME INTOXICATED THE SUPREME COURT OF TEXAS RULED THE STATE'S HIGHEST COURT CONCLUDED THAT THE DRINKER NOT THE HOST REMAINS PRIMARILY RESPONSIBLE FOR HIS OWN BEHAVIOR THE DECISION REVERSED A LOWER COURT'S RULING THAT PRIVATE INDIVIDUALS HAVE A DUTY TO PROTECT THE PUBLIC FROM AN INTOXICATED GUEST THE CASE AROSE AFTER A MINOR BRETT BEARD WAS INJURED AND HOSPITALIZED WHEN THE MOTORCYCLE HE WAS DRIVING WAS STRUCK BY A CAR DRIVEN BY EDWARD MOOS MR MOOS SETTLED NEGLIGENCE CLAIMS BROUGHT BY MR BEARD BUT MR BEARD AND HIS MOTHER ALSO SUED TWO FAMILIES WHO WERE HOSTS OF THE PARTY WHERE MR MOOS BECAME INTOXICATED MR BEARD ALLEGED THAT THE PARTY HOSTS WERE NEGLIGENT IN SERVING ALCOHOL TO MR MOOS WHEN THEY KNEW HE WAS DRUNK AND WOULD BE DRIVING A CAR THE HIGH COURT SAID THAT AS A PRACTICAL MATTER IT WOULD BE DIFFICULT FOR A HOST TO MONITOR GUESTS' DRINKING AND TO PREVENT AN INTOXICATED GUEST FROM DRIVING THE COURT ALSO CITED THE STATE LEGISLATURE'S DECISION TO DELETE A PROVISION GOVERNING SOCIALHOST LIABILITY WHEN A LAW WAS DRAFTED TO IMPOSE LIABILITY ON BUSINESSES THAT SERVE ALCOHOL TO DRUNK PEOPLE THE COURT NOTED THAT THE HIGH COURTS IN ONLY FOUR STATES HAD IMPOSED THE LIABILITY ON HOSTS WHO MAKE ALCOHOL AVAILABLE TO ADULT GUESTS IN TWO OF THOSE STATES CALIFORNIA AND IOWA LAWMAKERS SUBSEQUENTLY ABROGATED THE DUTY CREATED BY THE COURTS THE TEXAS COURT SAID IN ITS DECISION WHO'S NEWS CHARLES H NALLS FORMER ASSISTANT GENERAL COUNSEL OF THE INTERNATIONAL TRADE COMMISSION JOINED WASHINGTON LAW FIRM LEVY ZITO & GRANDINETTI WHICH SPECIALIZES IN INTELLECTUALPROPERTY LITIGATION STEVEN H ADELMAN JOINED CHICAGO LAW FIRM LORD BISSELL & BROOK HE WILL HEAD THE 300ATTORNEY LAW FIRM'S EMPLOYMENTLAW PRACTICE NEW YORK BAR PRESIDENT ARCHIBALD R MURRAY EXECUTIVE DIRECTOR SINCE 1975 OF THE 1000ATTORNEY LEGAL AID SOCIETY OF NEW YORK WILL BECOME PRESIDENT NEXT MONTH OF THE NEW YORK STATE BAR ASSOCIATION MR MURRAY WILL BE THE FIRST AFRICANAMERICAN TO HEAD THE ORGANIZATION HE SAID HE'LL PRESS FOR GREATER FEDERAL FUNDING OF THE LEGAL SERVICES CORP AND BETTER RELATIONS BETWEEN MINORITIES AND THE LEGAL AND CRIMINALJUSTICE WORLDS ELLEN JOAN POLLOCK IN NEW YORK AND ANDREA GERLIN IN DALLAS CONTRIBUTED TO THIS ARTICLE 9305200130 930426 REVIEW & OUTLOOK EDITORIAL TALE OF TWO NATIONS JESSE HELMS CALLED IT AN APRIL FOOLS' JOKE EVEN FORMER SANDINISTA SUPPORTERS SUCH AS BIANCA JAGGER ARE UPSET THE POLITICAL COALITION THAT THREW OUT NICARAGUA'S SANDINISTAS IN 1990 IS UP IN ARMS NICARAGUA ONE OF THE MOST FOUGHTOVER SUBJECTS OF THE PAST 12 YEARS HAS RETURNED TO THE FOREIGN POLICY AGENDA AND IN A WAY THAT SUGGESTS DEEP CONFUSIONS AMONG WASHINGTON POLICY MAKERS DESPITE EVIDENCE THAT MILLIONS OF DOLLARS OF US AID TO NICARAGUA HAVE BEEN ILLSPENT AND THAT THE POLITICAL CLIMATE THERE IS BECOMING MORE REPRESSIVE THE CLINTON ADMINISTRATION IS REOPENING THE FOREIGN AID SPIGOT SIMULTANEOUSLY EL SALVADOR IS HELD UP TO SCORN BY THE FORCES OF POLITICAL CORRECTNESS LITTLE WONDER THAT FOREIGNERS MARVEL AT THE US FOR ITS INCONSTANCY IN SUCH MATTERS CITING SOME KIND OF AMORPHOUS PROGRESS STATE DEPARTMENT SPOKESMAN RICHARD BOUCHER RECENTLY ANNOUNCED THAT 50 MILLION HELD UP BY THE BUSH ADMINISTRATION IN LIGHT OF CORRUPTION AND HUMAN RIGHTS REPORTS ON NICARAGUA WILL BE UNLOCKED AND THIS WILL PRIME MORE AID ROBERT LACEY THE WORLD BANK'S CENTRAL AMERICAN DIVISION CHIEF SAID THAT WASHINGTON PROMISED NICARAGUA 207 MILLION IN AID FOR THE BUDGET YEAR ENDING SEPTEMBER 30 IN ALL ABOUT 750 MILLION WAS PROMISED BY DONORS FOR 1993 THE ADMINISTRATION'S CLAIM OF PROGRESS IN NICARAGUA IS BIZARRE IN EL SALVADOR MILITARY LEADERS ARE STEPPING DOWN WHILE CHARGES AGAINST THEM ARE INVESTIGATED BUT THE HEAD OF NICARAGUA'S ARMY AND POLICE FORCE IS FORMER SANDINISTA GENERAL HUMBERTO ORTEGA THE MAN WHO ENFORCED MYRIAD ABUSES DURING THE SANDINISTA REGIME AND CONTINUES TO PRESIDE OVER AN ARMY WIDELY SUSPECTED OF INVOLVEMENT IN EXTRAJUDICIAL KILLINGS MEANWHILE A VIGILANTE GROUP HAS EMERGED WITH CONNECTIONS TO GENERAL ORTEGA'S ARMY THE LEFTIST PUNITIVE FORCE FPI IS RUN BY FRANK IBARRA A FORMER LIEUTENANT COLONEL IN THE ARMY HE HAS BOASTED PUBLICLY THAT HIS GROUP WOULD PUNISH THE NICARAGUANS TRYING TO ESTABLISH SECURE PROPERTY RIGHTS AND RESPECT FOR POLITICAL PLURALISM LAST NOVEMBER ARGES SEQUEIRA LEADER OF A NICARAGUAN GROUP TRYING TO RECOVER PRIVATE PROPERTY SEIZED BY THE SANDINISTAS WAS MURDERED CAPTAIN DIEGO JAVIER ESPINOZA ANOTHER FPI LEADER TOLD A LE MONDE REPORTER IN FEBRUARY THAT HE EARLIER HAD ORDERED THE KIDNAPPING OF MR SEQUEIRA THE FPI ALSO HAS DISTRIBUTED A PEOPLE'S ENEMIES LIST THAT INCLUDES NOTABLE OPPOSITION FIGURES SUCH AS MANAGUA'S OUTSPOKEN MAYOR ARNOLDO ALEMAN AND OTHER MEMBERS OF THE ANTISANDINISTA COALITION THAT HAVE SPLIT FROM PRESIDENT VIOLETA CHAMORRO THE MURDERED MR SEQUEIRA'S SUCCESSOR ARIEL SOLORZANO REPORTS THAT THE PROGRESS THAT HAD BEEN MADE IN DISCUSSIONS WITH THE GOVERNMENT OVER THE PROPERTY ISSUE WAS CUT SHORT AFTER THE APRIL 1 AID PACKAGE WAS ANNOUNCED OTHER DISSIDENTS IN NICARAGUA FEAR OFFICIAL AND UNOFFICIAL CRACKDOWNS NOW THAT THE GOVERNMENT FEELS IT HAS THE CLINTON ADMINISTRATION'S IMPRIMATUR THE FPI THUGS REMAIN FREE IN NICARAGUA AND HAVE STEPPED UP THEIR THREATS THERE'S BEEN LITTLE SERIOUS ATTEMPT TO MONITOR MORE THAN 700 MILLION OF US FUNDS THAT HAVE FLOWED INTO NICARAGUA SINCE MRS CHAMORRO WON THE PRESIDENCY IN 1990 THE CENTRAL BANK FOR INSTANCE IS ALSO THE FINANCIER OF STATE BANKS THAT ARE STILL CONTROLLED BY SANDINISTA LOAN OFFICERS WE USE THE TERM LOOSELY THESE STATE BANKS HAVE LENT MILLIONS OF DOLLARS IN SWEETHEART LOANS TO SANDINISTA BUSINESSES THAT HAVE GONE BAD IN 1992 ALONE STATE BANKS WROTE DOWN MORE THAN 100 MILLION WORTH OF NONPERFORMING LOANS MONEY THAT WAS REFINANCED BY THE CENTRAL BANK WHICH ITSELF WAS CAPITALIZED LARGELY BY US FUNDS MOST SERIOUS OBSERVERS AT LEAST WOULD AGREE THAT EL SALVADOR IS PROGRESSING NOT BACKSLIDING AS A DEMOCRATIC ECONOMICALLY FUNCTIONING CENTRAL AMERICAN NATION BUT IN NICARAGUA US AID SEEMS TO HAVE HAD THE OPPOSITE EFFECT THE DEMOCRATICCONTROLLED US CONGRESS NEVER APPLIED AS MANY CONDITIONS FOR REFORM THERE AS IT DID TO AID FOR EL SALVADOR LINKING THE FOREIGN AID MONEY TO REFORM COULD HAVE TURNED PROMISES INTO ACTIONS SAYS REP CHRIS SMITH R NJ THE RANKING MINORITY MEMBER ON THE HOUSE FOREIGN AFFAIRS WESTERN HEMISPHERE SUBCOMMITTEE IN OTHER WORDS IT NOW APPEARS THAT US FOREIGN POLICY IS GOING TO MINDLESSLY EXTEND THE DEMOCRATS' OBSESSIONS FROM THE '80S EXCORIATE A REVIVING EL SALVADOR BUT SHOWER AID ON A NICARAGUA STILL CHOKING ON ITS SANDINISTA LEGACY THE CITIZENS OF NICARAGUA CAN BE FORGIVEN THEIR CYNICISM AND DESPONDENCY THEY DESERVED BETTER SEE RELATED LETTERS LETTERS TO THE EDITOR NICARAGUA'S VICTORY OVER THE PAST WSJ MAY 20 1993 9304260017 YY93 MM05 9305200091 930401 CUT DOWN EVEN A LOGGER PRAISED AS SENSITIVE TO ECOLOGY FACES BITTER OPPOSITION BUD MCCRARY TREATS FOREST GENTLY BUT SOME WANT NO OLD TREES TAKEN AT ALL BAD SIGN FOR OREGON SUMMIT BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL PESCADERO CALIF WHEN ENVIRONMENTALISTS LOGGERS AND PRESIDENT CLINTON MEET IN OREGON TOMORROW FOR A TIMBER SUMMIT THEY MIGHT DO WELL TO PONDER THE PREDICAMENT OF HOMER T BUD MCCRARY MR MCCRARY IS A MODEL OF THAT RARE BIRD THE ENVIRONMENTALLY CONSCIOUS LOGGER GROUPS LIKE THE NATURE CONSERVANCY AND THE NATURAL RESOURCES DEFENSE COUNCIL HAVE CITED HIS OPERATION AS AN EXAMPLE OF LOGGING THAT DOESN'T TRASH THE FOREST THE SIERRA CLUB RECOMMENDED HIM IN 1990 FOR AN AWARD RECOGNIZING FOREST CONSERVATION EFFORTS AFTER MR MCCRARY'S BIG CREEK LUMBER CO BOUGHT 4000 ACRES OF REDWOOD AND FIR FOREST ABOVE BUTANO CREEK IN THE SANTA CRUZ MOUNTAINS IN 1991 A LOT OF ENVIRONMENTALISTS WERE RELIEVED THE PARCEL'S PREVIOUS OWNER TEXAS FINANCIER CHARLES HURWITZ HAD A REPUTATION FOR RUTHLESS CLEARCUTTING OF ANCIENT FORESTS MR MCCRARY AVOIDS CLEARCUTTING AND PLANNED TO CUT JUST FOUR OLDGROWTH TREES AN ACRE THE BUTANO HAD BEEN RESCUED RECALLS GAIL LUCAS A FORMER SIERRA CLUB TIMBER EXPERT WE KNEW BUD WOULD LOG THAT LAND WITH CARE BUT MR MCCRARY IS ALSO A SYMBOL OF A SPLIT IN ENVIRONMENTALISTS' ATTITUDES WITH AN INCREASING NUMBER ABANDONING SUPPORT OF CAREFUL SELECTIVE LOGGING AND OPPOSING CUTTING ANY VERY OLD TREES THE SIERRA CLUB HAS TURNED ON MR MCCRARY JOINING COURT ACTIONS TO STOP HIM FROM LOGGING THE BUTANO MORE EXTREME GROUPS HAVE USED SABOTAGE TO SLOW HIS CREWS WE WILL DEFEND THE TREES OF THE BUTANO HOWEVER WE CAN SAYS DANIEL BARRON A LEADER OF A COALITION INCLUDING GREENPEACE EARTH FIRST AND LOCAL ACTIVISTS WHICH HAS PUT PEOPLE ON PLATFORMS IN MR MCCRARY'S TREES TO BLOCK THEIR FELLING WE WANT BIG CREEK OUT OF BUSINESS IN THE BUTANO ASKS MR MCCRARY IS IT IMMORAL TO CUT DOWN AN OLD TREE TO WHICH MR BARRON REPLIES ABSOLUTELY PEACE AT HAND PRESIDENT CLINTON'S CALL FOR THE TIMBER SUMMIT IN PORTLAND ORE PROMPTED A GUSH OF OPTIMISM THAT PEACE IN THE FORESTS MIGHT AT LONG LAST BE ON THE HORIZON INDEED ONE SEEMINGLY PROMISING PROPOSAL SURE TO COME OUT OF THE SUMMIT WILL BE A COMMITMENT FROM THE TIMBER INDUSTRY TO EMPLOY MORE OF THE LOWIMPACT TECHNIQUES FOR WHICH MR MCCRARY IS KNOWN YET NOW EVEN MR MCCRARY IS HAVING TROUBLE CUTTING TREES UNDERSCORING THE GREAT DIFFICULTY OF REACHING COMPROMISE IN THE FOREST WHILE FEDERAL POLICY MAKERS HAVE DEBATED ENDLESSLY HOW TO BALANCE WILDLIFE PROTECTION AND TIMBER HARVEST RATES MANY OF THE TRENCH WARRIORS IN THE FOREST WARS AMONG BOTH ENVIRONMENTALISTS AND TIMBER INTERESTS HAVE BECOME INCREASINGLY RADICAL MEANWHILE LUMBER PRICES ARE SKYROCKETING LARGELY BECAUSE OF LOGGING RESTRICTIONS ON PUBLIC LAND PROVOKING HEAVY CUTTING OFTEN WITH THE BRUTISH METHODS ON MUCH PRIVATE LAND FOR MR MCCRARY A SLIM SOFTSPOKEN 66YEAROLD THE FLAK IS JARRING AFTER SO MANY YEARS OF BEING REGARDED AS A FOREST GOOD GUY THE MCCRARYS HAVE LIVED ALONG BIG CREEK A WATERFALLSTUDDED TORRENT FOR FOUR GENERATIONS BUD AND HIS BROTHER FRANK LUD MCCRARY 64 STARTED CUTTING TIMBER ON FAMILY LAND AFTER RETURNING FROM WORLD WAR II TODAY THEIR BIG CREEK COMPANY OWNS ABOUT 8000 ACRES AND LOGS PERIODICALLY ON THOUSANDS MORE ACRES ALL PRIVATE IT EMPLOYS 170 PEOPLE AND HAS ANNUAL SALES OF ABOUT 30 MILLION IN ITS 47YEAR EXISTENCE MR MCCRARY SAYS THE COMPANY HAS ALWAYS MADE MONEY FOR MOST OF THAT TIME MR MCCRARY ALSO WAS UNSCATHED BY THE FEROCIOUS FIGHTS BETWEEN LOGGERS AND ENVIRONMENTALISTS MR MCCRARY AND HIS GREEN FRIENDS SAY THAT IS BECAUSE THE MCCRARYS' APPROACH BLENDS A WOODSMAN'S RESPECT FOR THE LAND WITH A GENERAL INDIFFERENCE TO MAXIMUM SHORTTERM PROFITS AN UNUSUAL COMBINATION IN THE TIMBER BUSINESS AGNES MCCRARY BUD AND LUD'S 89YEAROLD MOTHER SAYS THIS MAY STEM FROM A LIFETIME SPENT LIVING ON THE LAND THEY LOG THE BOYS LEARNED THAT THE REAL VALUE OUT HERE ISN'T MONEY OR FANCY CLOTHES IT'S THE LAND SHE SAYS DESTROY THE LAND AND YOU'VE GOT NOTHING BUD MCCRARY PUTS IT ANOTHER WAY THERE'S A LOT OF TALK ABOUT BOTTOM LINES IN THIS BUSINESS BUT THE REAL BOTTOM LINE IS WHAT WILL BE HERE IN 50 YEARS IN 100 YEARS IN 200 YEARS SUCH PRONOUNCEMENTS FROM A LOGGER MIGHT INVITE SKEPTICISM BUT TESTIMONIALS FOR BIG CREEK ROLL IN FROM UNLIKELY ANGLES MR MCCRARY WORKS WITH THE FOREST AS OPPOSED TO WORKING OVER THE FOREST SAYS WILLIAM DEMPSEY A NATURE CONSERVANCY FIELD REPRESENTATIVE ADDS MS LUCAS FORMERLY THE SIERRA CLUB'S TOP CALIFORNIA FOREST EXPERT IF ALL LOGGING WAS DONE AS CAREFULLY AS BUD'S WE WOULDN'T HAVE A CRISIS IN OUR FORESTS LAST MONTH SOME WEST COAST ENVIRONMENTALISTS FEARFUL ABOUT THE FUTURE OF SIBERIA'S VIRGIN FORESTS HAD MR MCCRARY MEET WITH RUSSIA'S MINISTER OF NATURAL RESOURCES WE WANTED BUD TO EXPLAIN TO THE MINISTER THAT THERE ARE WAYS TO LOG PRODUCTIVELY WITHOUT DEVASTATING THE FORESTS SAYS MR DEMPSEY OUT IN THE FORESTS ON A RECENT MORNING IT IS CLEAR THAT BIG CREEK ISN'T A RUNOFTHEMILL OPERATION ITS LANDS BEAR NONE OF THE TRACTOR GASHES SMOLDERING CLEARCUTS AND FOOTBALLFIELDSIZE LANDSLIDES THAT MAR MUCH OF THE WEST'S TIMBERLAND ROADS ARE NARROWER THAN THOSE OTHER LOGGERS CUT AND BUILT TO MINIMIZE EROSION BIG CREEK TYPICALLY CUTS ONLY ABOUT HALF OF THE LARGE TREES ON A TRACT OTHER CALIFORNIA LOGGERS OFTEN OBLITERATE EVERYTHING ON AN 80ACRE PARCEL THE MAXIMUM CLEARCUT UNDER STATE LAW OREGON AND WASHINGTON ALLOW 500ACRE CLEARCUTS MR MCCRARY LOPES UP A STEEP SLOPE TO PART OF AN AREA LOGGED THREE YEARS AGO BIG CREEK TOOK ENOUGH TIMBER OUT OF HERE TO BUILD DOZENS OF HOUSES NOW YOUNG REDWOODS AND FIRS SPROUT WHERE THE OLD TREES STOOD THEY JOSTLE FOR LIGHT WITH 40YEAROLD 100FOOT TREES THAT WEREN'T TOUCHED BY THE LOGGING THE AREA DOESN'T LOOK MUCH DIFFERENT FROM THE COUNTYOWNED PARKLAND THAT STARTS A FEW YARDS AWAY AT TIMES MR MCCRARY SEEMS TO HAVE MORE IN COMMON WITH HIS OPPONENTS THAN WITH THE REST OF THE TIMBER BUSINESS HE HAS DONATED LAND AND MONEY FOR A SALMON AND STEELHEAD HATCHERY ON THE FAMILY HOMESTEAD TO TRY TO BRING FISH BACK TO BIG CREEK AND OTHER NEARBY STREAMS PAST LOGGING BY OTHER COMPANIES HELPED RUIN SPAWNING BEDS EVERY YEAR HE LEADS A SIERRA CLUB DAYHIKE TO A SERIES OF WILD TREELINED WATERFALLS ON MCCRARY LAND BERRY FALLS A GORGEOUS CASCADE FLANKED BY 600YEAROLD REDWOODS USED TO BE ON THE MCCRARYS' LAND THEY SOLD THE SPOT TO A STATE PARK IN THE 1960S IT WAS A SPECIAL PLACE AND IT JUST HAD MORE VALUE TO SOCIETY AS PARKLAND MR MCCRARY SAYS SOME IN THE TIMBER INDUSTRY REGARD MR MCCRARY AS SANCTIMONIOUS AND POINT OUT THAT AS A PRIVATE COMPANY BIG CREEK DOESN'T FACE ANY PRESSURE TO MAXIMIZE PROFITS OR PLEASE SHAREHOLDERS SOME THINK HIS GREEN CONNECTIONS AMOUNT TO FRATERNIZING WITH THE ENEMY BUT MOSTLY HE IS RESENTED BY SOME TIMBER INTERESTS FOR DEMONSTRATING THAT LOWIMPACT TECHNIQUES WORK TIMBER COMPANIES HAVE DISMISSED THE GENTLER APPROACH AS HOPELESSLY UNECONOMIC BUD'S SUCCESS STANDS AS A REPROACH TO THEM SAYS ROBERT HRUBES A FORESTRY CONSULTANT IN POINT RICHMOND CALIF MR MCCRARY'S RECENT TROUBLES HAVE MADE HIM A TRAILBLAZER IN THE ART OF WHAT HE CALLS POLITICAL FORESTRY BASICALLY THIS MEANS CONSTANTLY ENGAGING OPPONENTS TRYING TO EASE THEIR FEARS AND CHANGE THEIR MINDS ABOUT BIG CREEK'S WORK IT CARRIES MR MCCRARY INTO PLACES WHERE MOST WOODCUTTERS DARE NOT TREAD ONE SUCH PLACE IS THE UNIVERSITY OF CALIFORNIA CAMPUS AT SANTA CRUZ ON A RECENT FRIDAY NIGHT DAVE FOREMAN COFOUNDER OF EARTH FIRST IS ADDRESSING SEVERAL HUNDRED STUDENTS AND FOREST ACTIVISTS MR MCCRARY SITS AMONG THEM HOWL WITH ME NOW HOWL FOR THE WOLF MR FOREMAN IMPLORES AAAHROOO HE CRIES THE AUDIENCE ALSO WAILS EXCEPT FOR MR MCCRARY HE SCRATCHES HIS THICK WHITE HAIR WATCHING IN SILENCE UP TO THE HOWLING PART MR FOREMAN HAS BEEN TALKING ELOQUENTLY ABOUT THE NEED TO RESTORE THE LOST PARADISE OF PRIMORDIAL AMERICAN NATURE WHICH OF COURSE WOULD REQUIRE SEVERE LOGGING RESTRICTIONS SO WHEN THE HOWLING FADES MR MCCRARY MAKES HIS WAY TOWARD MR FOREMAN I OWN A LOGGING COMPANY AND I ENJOYED YOUR SPEECH SAYS MR MCCRARY MR FOREMAN WHO ISN'T ACCUSTOMED TO COMPLIMENTS FROM LOGGERS SMILES AND SAYS THEN I'LL HAVE TO GET MORE RADICAL THEY TALK ABOUT WHETHER IT IS POSSIBLE TO LOG WITHOUT WRECKING THE FOREST THEY DON'T AGREE BUT MR MCCRARY ENDS UP INVITING MR FOREMAN TO TOUR BIG CREEK'S OPERATIONS SURELY ONE OF THE FEW TIMES A LUMBERJACK HAS ASKED SUCH A RENOWNED ECORADICAL ONTO HIS LANDS THE TROUBLE AROUND BUTANO CREEK STARTED IN 1990 WHEN MR MCCRARY BEGAN TRYING TO LOG TRACTS IN THE AREA HE WASN'T EXPECTING A FUSS BIG CREEK HAD DONE SOME LOGGING ON THE BUTANO WITHOUT INCIDENT FOR SEVERAL YEARS AS A CONTRACTOR FOR PACIFIC LUMBER CO HE HAD VOLUNTEERED TO PUT 378 ACRES OF THE LAND'S OLDGROWTH TREES IN A CONSERVATION AREA OFF LIMITS TO THE SAW HE PLANNED TO CUT ABOUT FOUR OLD TREES AN ACRE OVER THREE OR FOUR YEARS MOREOVER WHILE THE BUTANO WOODS ARE LOVELY THEY AREN'T THE DENSE WEAVE OF ANCIENT TREES AT THE HEART OF THE WEST'S TIMBER BATTLES EXCEPT FOR THE ACRES MR MCCRARY TARGETED FOR CONSERVATION MOST OF THE OLDGROWTH HABITAT THAT ONCE COVERED THE LAND WAS WIPED OUT BY CLEARCUTTING BY OTHER COMPANIES IN THE 1950S WHAT IS LEFT IS MOSTLY SECONDGROWTH REDWOODS ABOUT 40 TO 60 YEARS OLD WITH A FEW POCKETS OF OLDER GIANTS THE AREA HAS NO SPOTTED OWLS WE REALLY DIDN'T EXPECT THIS KIND OF FIGHT MR MCCRARY SAYS IT STARTED NONETHELESS THE AUDUBON SOCIETY A FLYFISHERMEN'S GROUP AND MR MCCRARY'S OLD FRIENDS AT THE SIERRA CLUB BANDED TOGETHER TO CHALLENGE BIG CREEK IN COURT WHERE FOREST DEFENDERS HAVE SCORED BIG VICTORIES IN RECENT YEARS THE SUIT FILED IN EARLY 1991 IN STATE COURT IN REDWOOD CITY CALIF ALLEGED THAT BIG CREEK'S LOGGING WOULD IMPERIL THE MARBLED MURRELET A RECLUSIVE AND ENDANGERED SEABIRD PROTECTED BY STATE AND FEDERAL LAW IN OCTOBER OF THAT YEAR A STATE JUDGE DISMISSED THE SUIT CITING A LACK OF EVIDENCE A FEW MONTHS LATER A SECOND SUIT CONTAINING MOST OF THE SAME ALLEGATIONS WAS FILED IN THE SAME COURT BIOLOGISTS TESTIFIED THAT NO MURRELET NESTS EXISTED ON THE LAND AND PRAISED BIG CREEK'S MURRELET PROTECTIONS STATE JUDGE JUDITH KOZLOSKI RULED AGAINST THE ENVIRONMENTALISTS CALLING THE CASE AN ENDRUN AROUND THE PREVIOUS DEFEAT SHE ORDERED THE PLAINTIFFS TO PAY BIG CREEK'S ATTORNEY FEES THE REAL ACTION THOUGH HAS BEEN IN THE WOODS SINCE LAST SUMMER EARTH FIRST AND OTHER ACTIVISTS HAVE BEDEVILED BIG CREEK WITH A TACTIC KNOWN AS MONKEY WRENCHING THEY HAVE DRAINED TRANSMISSION FLUID FROM BIG CREEK TRACTORS THEY HAVE PLUGGED PADLOCKS WITH EPOXY AND QUICKDRYING CEMENT AN ACTIVIST CALLING HERSELF THREE SISTERS CAMPED IN ONE OF MR MCCRARY'S TALL REDWOODS FOR SIX DAYS IN PROTEST BEFORE SHE WAS HAULED DOWN OTHERS HAVE HANDCUFFED AND CHAINED THEMSELVES TO LOGGING TRUCKS AND TO THE SAWMILL MAIN GATE ONCE AN EXASPERATED MR MCCRARY UNDER THE WATCHFUL EYE OF POLICE CUT SOME OF THEM LOOSE WITH A BLOWTORCH THE COURT MANEUVERING AND SABOTAGE SLOWED BIG CREEK'S CUTTING AND ADDED HUNDREDS OF THOUSANDS OF DOLLARS IN COSTS FROM LEGAL FEES AND ADDITIONAL SECURITY MR MCCRARY SAYS THE RESULT BY LATE FALL FACING A SHORTAGE OF RAW LOGS MR MCCRARY FOR THE FIRST TIME CUT BACK WORKERS' HOURS AND PUT HIS MAIN SAWMILL ON A FOURDAY WORK WEEK IN DECEMBER HE CLOSED THE MILL ALTOGETHER IT HAS BEEN SHUTTERED SINCE NOW AS LOGGING SEASON LOOMS THE BUTANO BATTLE IS FLARING AGAIN BIG CREEK IS SEEKING APPROVAL FROM STATE FOREST REGULATORS TO LOG FOUR OLD TREES AN ACRE ON A DIFFERENT PART OF THE PROPERTY MR MCCRARY SAYS HE NEEDS THE LOGS TO REOPEN HIS MILL HIS OPPONENTS HAVE BOMBARDED TIMBER REGULATORS WITH COMPLAINTS AND THREATENED MORE LAWSUITS SOME ENVIRONMENTALISTS THINK MR MCCRARY'S CRITICS ARE BARKING UP THE WRONG TREE AND MAY END UP HURTING THE LARGER CAUSE OF FOREST PROTECTION SOME PEOPLE WOULD RATHER FIGHT THAN WIN SAYS THE NATURE CONSERVANCY'S MR DEMPSEY I ADMIRE THESE PEOPLE'S COMMITMENT AND ENERGY BUT THERE ARE LOTS OF VILLAINS IN THE FOREST BUD'S NOT AMONG THEM PARTICULARLY PUZZLING TO SOME OF MR MCCRARY'S SUPPORTERS IS THE SIERRA CLUB'S ROLE THE CLUB'S NATIONAL LEADERS' PROPOSALS ON LOGGING REFORM HAVE NEVER CALLED FOR A TOTAL BAN ON THE CUTTING OF OLD TREES IN FACT THEY PROMOTE THE KIND OF SELECTIVE CUTTING MR MCCRARY HAS HELPED PIONEER DARRYL YOUNG THE CLUB'S LEGISLATIVE DIRECTOR FOR CALIFORNIA SAYS THE BUTANO IS A SPECIAL CASE WE THINK BIG CREEK DOES A GOOD JOB GENERALLY BUT WE DON'T THINK ANY OLD GROWTH SHOULD BE CUT IN THE BUTANO HE SAYS IT'S BEEN RAVAGED IN THE PAST I'LL ADMIT THAT OUR POSITION MIGHT SEEM CONTRADICTORY OTHER BUTANO DEFENDERS OFFER MORE IMPASSIONED ARGUMENTS THEY CONTEND THAT THE BUTANO ECOSYSTEM WAS SO BADLY ABUSED BY SLASHANDBURN CUTTING THAT IT MUST BE LEFT UNTOUCHED FOR DECADES IF IT IS TO RECOVER THEY WORRY THAT ANY NEW LOGGING WILL TRIGGER LANDSLIDES THAT COULD CLOG BUTANO CREEK DAMAGING STEELHEAD SPAWNING SITES AND SILT UP PESCADERO MARSH A COASTAL WETLAND THE CREEK SPILLS INTO INDEED FOR YEARS AFTER THE EARLIER LOGGING PARTS OF THE CREEK WERE PLUGGED WITH DIRT TWIGS AND DEBRIS THEY INSIST THAT MARBLED MURRELETS DO NEED THE OLD TREES PROPOSED FOR CUTTING AND THAT OTHER RARE SPECIES TOWNSEND BIGEARED BATS FOOTHILL YELLOWLEGGED FROGS SHARPSHINNED HAWKSCOULD BE JEOPARDIZED TOO THEN THERE ARE THE MORAL ARGUMENTS MANY OF BIG CREEK'S OPPONENTS SIMPLY BELIEVE IT IS WRONG TO CUT DOWN TREES PARTICULARLY OLDER ONES THEY SAY AT LEAST 90 OF THE NATION'S VIRGIN FORESTS ARE GONE MANY CREATURES DEPENDENT ON THEM ARE GONE OR ENDANGERED WE HAVE LAID WASTE TO THE FORESTS EXTERMINATED SPECIES SAYS MR BARRON THESE TREES ARE LIVING BEINGS THAT LOGGERS ARE KILLING AND THAT IS MANIFESTLY WRONG ALL THIS WEIGHS ON MR MCCRARY HE WON'T TALK MUCH ABOUT BIG CREEK'S FINANCIAL CONDITION BUT HE CLEARLY MADE A BIG STRETCH BY BUYING THE BUTANO TRACT FOR ABOUT 8 MILLION WE'VE GOT BIG PAYMENTS TO MAKE HE SAYS IT'S HARD TO MAKE PAYMENTS WHEN YOU CAN'T WORK MUCH LATELY HE SAYS HE HAS BEGUN TO THINK ABOUT MAYBE SELLING THE BUTANO LAND RETIRING TO A LIFE OF HIKING AND BUILDING TRAILS BUT WHO WOULD BUY THE LAND THE MOST LIKELY BIDDERS WOULD BE TIMBER COMPANIES WITH DEEPER POCKETS OR HOUSING DEVELOPERS WOULD THAT BE PROGRESS HE WONDERS ALOUD MR MCCRARY'S MOTHER AGNES WONDERS TOO SHE SITS WITH BUD AT HER KITCHEN TABLE LOOKING THROUGH OLD FAMILY PHOTOS SOME SHOW PARTS OF MCCRARY LAND ALMOST BARE OF TREES NOT FROM LOGGING BUT FROM NATURAL FORCES LIKE LIGHTNING SPARKED FIRES WHICH IN THE DAYS BEFORE MODERN FIREFIGHTING TECHNIQUES REGULARLY LEVELED TRACTS OF FOREST LAND THOSE SAME LANDS TODAY ARE COVERED WITH REDWOODS AND DOUGLAS FIRS SHE PICKS OUT A PHOTO OF A YOUNG AGNES AGE FIVE STANDING NEXT TO A SPINDLY REDWOOD JUST ABOUT AS TALL AS SHE WAS TODAY THAT TREE IS 140 FEET TALL AND 15 FEET AROUND MCCRARYS HAVE TAKEN GOOD CARE OF THIS LAND FOR A LONG TIME SHE SAYS IT'D BE AWFUL SAD TO SEE THAT COME TO AN END SEE RELATED LETTER LETTERS TO THE EDITOR OLD FORESTS LOVE 'EM AND LEAVE 'EM ALONE WSJ MAY 20 1993 9304010067 YY93 MM05 9305200009 930310 THE GREAT INDUSTRIAL POLICY HOAX BY KARL ZINSMEISTER PRESIDENT CLINTON STRESSING THE NEED TO COPY OUR COMPETITORS IS DEVISING AN EXPANSIVE US INDUSTRIAL POLICY HIS MAIN MODEL IS JAPAN UNFORTUNATELY THE PRESIDENT DOESN'T SEEM TO UNDERSTAND THE TRUE STRENGTHS OF THE JAPANESE ECONOMY OR ITS UNDERREPORTED WEAKNESSES THE FACT IS JAPANESE INDUSTRIAL POLICY OFFERS VERY LITTLE TO ENVY OR COPY IN POPULAR FABLE THE GRAND INTELLIGENCE BEHIND JAPAN'S ECONOMIC MIRACLE HAS BEEN THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY IN THE AFTERMATH OF WORLD WAR II MITI BUREAUCRATS USED THEIR BROAD POWERS TO DISTRIBUTE JAPAN'S LIMITED COMMERCIAL RESOURCES AND ASSIGN TASKS FOR REBUILDING THE SHATTERED ECONOMY RIGHT FROM THE BEGINNING THOUGH MITI'S ECONOMIC ENTERPRISING BROUGHT MISDIRECTIONS IN THE 1950S FOR INSTANCE MITI WORKED VIGOROUSLY TO FORCE THE JAPANESE AUTOMOBILE INDUSTRY INTO A SINGLE COMPANY BECAUSE PLANNERS WERE CERTAIN MULTIPLE DOMESTIC COMPETITORS WOULD ONLY WEAKEN EACH OTHER FORTUNATELY MINISTRY OFFICIALS WERE UNABLE TO STRONGARM PRIVATE MANUFACTURERS INTO ACCEPTING THEIR VISION OF ONE TWO OR BY 1961 AT MOST THREE JAPANESE AUTO FIRMS TODAY JAPAN HAS NINE AUTO BUILDERS AND FIERCE COMPETITION AMONG THEM HAS DRIVEN THE INDUSTRY TO ITS CURRENT LEVELS OF EXCELLENCE AT ABOUT THE SAME TIME MITI WAS PUSHING OTHER COMPANIES TO AVOID WHAT IT VIEWED AS A DEADEND IN ELECTRONICS IN 1953 A SMALL COMPANY NAMED SONY ASKED TO BUY TRANSISTORMANUFACTURING RIGHTS FROM WESTERN ELECTRIC MITI WAS NOT IMPRESSED WITH THE TECHNOLOGY OR WITH SONY AND DIDN'T WANT TO SQUANDER SCARCE FOREIGN CURRENCY ON EITHER PERMISSION TO MAKE THE PURCHASE WAS REFUSED AND A GREAT ENTERPRISE WOULD HAVE BEEN LOST HAD IT NOT BEEN FOR SONY FOUNDER AKIO MORITA'S PERSISTENT BADGERING OF OTHER BUREAUCRATS UNTIL HE GOT THE GOAHEAD MEANWHILE MITI WAS LEADING OTHER SECTORS OF THE JAPANESE ECONOMY DOWN PATHS THAT WOULD LEAD TO DISAPPOINTMENT AND WASTED RESOURCES TAKE THE STEEL INDUSTRY IN THE US JAPAN'S STEEL INDUSTRY IS COMMONLY THOUGHT OF AS A MITI TRIUMPH IT HAS ACTUALLY BEEN A NET DRAG ON NATIONAL INCOME AFTER A GIANT FORCEFED BUILDUP DURING THE 1960S AND 1970S MANY OF JAPAN'S BLAST FURNACES HAVE FALLEN IDLE TENS OF THOUSANDS OF STEELWORKERS HAVE BEEN LAID OFF OVER THE PAST DECADE AND COSTLY BUT UNDERUTILIZED PLANTS HAVE BEEN SCRAPPED MITI'S EXPENSIVE CRUSADES TO BUILD UP THE ALUMINUM AND NONFERROUS METAL INDUSTRIES WERE AN EVEN WORSE DEBACLE MITI'S ATTEMPTS TO TARGET INDUSTRIES OF THE FUTURE HAVE MISFIRED FAR MORE THAN THEY HAVE SUCCEEDED EFFORTS TO BUILD UP JAPAN'S AIRCRAFT AND AEROSPACE INDUSTRIES HAVE PRODUCED ONLY INFERIOR PRODUCTS AT ABSURD PRICES DECADESLONG ATTEMPTS TO JUMPSTART THE BIOTECHNOLOGY INDUSTRY HAVE BEEN EQUALLY DISAPPOINTING MITI'S SUNSHINE PROJECT WHICH WAS INTENDED TO ACHIEVE BREAKTHROUGHS IN ALTERNATIVE ENERGY SOURCES WAS FRUITLESS MITI ALSO MADE A MESS OF JAPAN'S OIL INDUSTRY MINISTRY MANDARINS ENFORCED WHAT HAS BEEN CALLED THE WORLD'S WORST NATIONAL OIL POLICY RESULTING IN HUGE COSTS TO GOVERNMENT CONSUMERS AND BUSINESS ALIKE PLUS A VERY WEAK SET OF ENERGY COMPANIES MITI FLOUNDERED IN SIMILAR WAYS IN THE PETROLEUMBASED CHEMICAL MAKING INDUSTRY ANOTHER MITI DISAPPOINTMENT IS THE COMPUTER INDUSTRY THOUGH THE SECTOR WAS FIRST TARGETED NEARLY THREE DECADES AGO MOST JAPANESE PRODUCTS CONTINUE TO BE ALSORANS IN LITTLE DEMAND OUTSIDE THEIR SHELTERED DOMESTIC MARKETS NIMBLER AMERICAN COMPANIES SET ALMOST ALL INDUSTRY STANDARDS AND HAVE USED SUPERIOR TECHNOLOGY AND MANUFACTURING TO TAKE BACK SUBMARKETS LIKE PRINTERS HARD DRIVES AND PALMTOP COMPUTERS THAT WERE ONCE BELIEVED TO BE SLATED FOR JAPANESE DOMINANCE ONE OF MITI'S MOST AMBITIOUS PROGRAMS THE FIFTH GENERATION COMPUTER PROJECT INSPIRED MUCH FEAR IN OTHER COUNTRIES WHEN IT COMMENCED IN 1981 THE 10YEAR EFFORT COORDINATED THE WORK OF EIGHT COMPANIES IN A NEW GOVERNMENT LABORATORY ITS WIDELY TRUMPETED GOAL WAS TO PRODUCE THE WORLD'S FIRST THINKING ARTIFICIALLY INTELLIGENT COMPUTERS THE PROJECT HAS FALLEN FAR SHORT OF ITS AIMS HOWEVER HAVING PRODUCED NO FUNDAMENTAL TECHNICAL ADVANCES OR MARKETABLE PRODUCTS MITI ISN'T THE ONLY AGENCY THAT HAS FAILED AT INDUSTRIAL POLICY TAKE SHIPBUILDING STARTING IN THE 1950S THE TRANSPORT MINISTRY USED TARIFFS AND OTHER MEASURES TO BUILD UP THE WORLD'S LARGEST YARDS AND HIGHESTVOLUME INDUSTRY BY THE LATE 1970S THOUGH WORLDWIDE OVERBUILDING AND CHANGING CARGO PATTERNS HAD TURNED THE FACILITIES INTO WHITE ELEPHANTS BECAUSE THEY WERE FOLLOWING GOVERNMENT INCENTIVES INSTEAD OF MARKET SIGNALS JAPAN'S SHIPBUILDERS MONUMENTALLY MISCALCULATED THE DEMAND FOR AND PROFITABILITY OF THEIR PRODUCT THE LOSSES WERE HUGE ANOTHER FOLLY ENGINEERED BY THE MINISTRY OF TRANSPORT WAS THE NATIONAL RAILWAY THE RAILWAY IS KNOWN TO MOST AMERICANS FOR ITS IMPRESSIVE HIGHSPEED BULLET TRAINS WHAT IS LESS WELL APPRECIATED IS THAT UNTIL IT WAS FINALLY PRIVATIZED IN 1987 THE AGENCY HAD THOUSANDS OF FEATHERBEDDED EMPLOYEES POOR SERVICE STRIKES OVERCROWDING AND LOSSES THAT AVERAGED MORE THAN 20 MILLION A DAY SOME 279 BILLION IN DEBT ENDED UP ON THE PUBLIC BOOKS A BURDEN TO BE CARRIED BY TAXPAYERS FOR DECADES THERE IS A WARNING IN THIS FOR MR CLINTON WHO HAS SPOKEN OFTEN OF HIS PLANS TO HAVE THE GOVERNMENT BUILD HIGHSPEED RAIL LINES IN THIS COUNTRY GOVERNMENT CODDLING HAS ALSO MADE JAPANESE AIRLINES EXTREMELY INEFFICIENT UNTIL 1986 GOVERNMENTRUN JAPAN AIRLINES HELD A MONOPOLY ON OVERSEAS FLIGHTS AND ALL NIPPON AIRWAYS HAD A VIRTUAL MONOPOLY ON DOMESTIC FLIGHTS TICKETS WERE SO COSTLY THAT RELATIVELY FEW JAPANESE COULD AFFORD TO FLY WHEN JAL WAS FINALLY PRIVATIZED IN 1987 ITS MANAGERS FOUND THAT THE COZY REGULATORY COCOON THEY ENJOYED FOR SO MANY YEARS LEFT THEM ILLPREPARED FOR FIERCE GLOBAL COMPETITION TODAY JAL IS ONE OF THE WORLD'S HIGHESTCOST CARRIERS AND ITS SHARE OF TRAVEL TO AND FROM JAPAN HAS FALLEN BY ONESIXTH AMERICAN CARRIERS WHICH HONED OPERATIONS AFTER BEING RELEASED FROM GOVERNMENT REGULATION ABOUT A DECADE EARLIER ARE FAR MORE COMPETITIVE ON THE MAJOR TRANSPACIFIC ROUTES TELECOMMUNICATIONS SIMILARLY HAS BEEN STIFLED BY THE GOVERNMENT'S EMBRACE ALTHOUGH THE NATIONAL TELECOM MONOPOLY NIPPON TELEGRAPH & TELEPHONE IS AT LAST BEING PRIVATIZED IT IS STILL MOSTLY STATEOWNED AND NOT VERY EFFICIENT PHONE CALLS COST 50 MORE IN JAPAN THAN IN THE US AND SERVICE IS MUCH LESS INNOVATIVE CELLULAR PHONES FOR INSTANCE HAVE ONLY JUST RECENTLY CAUGHT ON DUE TO CLUMSY REGULATION BY THE MINISTRY OF POSTS AND TELECOMMUNICATIONS THEN THERE IS THE FINANCIAL SECTOR MINISTRY OF FINANCE DOTING HAS KEPT JAPAN'S BANKS LIFE INSURANCE COMPANIES AND STOCKBROKERING FIRMS IN AN INEFFICIENT BACKWATER STATE AND IN THE PAST SEVERAL YEARS MANY INSTITUTIONS HAVE CAREENED TOWARD INSOLVENCY GOVERNMENT POLICIES ARE ALSO DIRECTLY RESPONSIBLE FOR THE RECENT COLLAPSE OF JAPAN'S STOCK MARKET AND FOR THE DISASTROUS SPECULATION IN LAND AND REAL ESTATE MARKETS THAT HAS MADE HOMES UP TO 10 TIMES MORE EXPENSIVE THAN IN AMERICA THE FARM POLICIES OF THE MINISTRY OF AGRICULTURE CAN ONLY BE CHARACTERIZED AS A FIASCO JAPANESE CONSUMERS MUST PAY TWICE AS MUCH FOR FOOD AS AMERICANS AS A SHARE OF FAMILY INCOME IN A TIME OF DAMAGING LABOR SHORTAGES IN JAPAN 9 OF THE WORKFORCE IS TIED UP IN FARMING VS 3 IN THE US AND LARGE AMOUNTS OF PRIME URBAN LAND ARE LOCKED AWAY IN INEFFICIENT CROPPING INSTEAD OF BEING USED FOR DESPERATELY NEEDED HOUSING OR COMMERCIAL BUILDINGS THE LIST OF INDUSTRIAL POLICY FAILURES GOES ON AND ON IT IS STRIKING TO NOTE THAT MANY OF JAPAN'S FEEBLEST INDUSTRIES ARE THOSE THAT HAVE BEEN SUBSIDIZED BY THE GOVERNMENT MANY OF ITS STRONGEST BUSINESSES SUCH AS HOME ELECTRONICS CAMERAS ROBOTICS PRECISION EQUIPMENT PIANOS BICYCLES WATCHES AND CALCULATORS NUMERICALLY CONTROLLED MACHINE TOOLS AND CERAMICS DEVELOPED WITHOUT HELP FROM MITI OR OTHER AGENCIES JAPAN ACHIEVED ITS ECONOMIC MIRACLE NOT BECAUSE OF GOVERNMENT PLANNING BUT IN SPITE OF IT THE JAPANESE UNDERSTAND THIS AND HAVE STARTED TO DISCARD THEIR INDUSTRIAL POLICIES PRIVATIZING THE NATIONAL RAILWAY THE NATIONAL AIRLINE AND THE TELEPHONE MONOPOLY DEREGULATION OF THE OILREFINING INDUSTRY AND BANKING AND FINANCIAL SERVICES HAS BEGUN THE ONCE TIGHTLY CONTROLLED RETAIL AND DISTRIBUTION SECTOR IS SEEING SOME RELAXATION AND NUMEROUS GOVERNMENT TARIFFS ARE BEING REMOVED OR LOWERED THE IRONY IS THAT JUST AS THE JAPANESE ARE FLEEING NATIONAL BUSINESS MANAGEMENT SOME AMERICANS ARE EDGING TOWARD IT MR ZINSMEISTER IS AN ADJUNCT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE A LONGER VERSION OF THIS ARTICLE WILL BE PUBLISHED IN THE SPRING ISSUE OF POLICY REVIEW SEE RELATED LETTER LETTERS TO THE EDITOR SLANTED COVERAGE OF JAPANESE ECONOMY WSJ MAY 20 1993 9303100105 YY93 MM05 9305190159 930519 AFFILIATES OF NBC SMOOTH PEACOCK'S RUFFLED FEATHERS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL ORLANDO FLA COMING OFF ONE OF THE WORST YEARS IN ITS HISTORY NBC EXPECTED SOME SNIPING AND TESTINESS FROM ITS 209 AFFILIATE STATION MANAGERS WHO GATHERED HERE THIS WEEK FOR THEIR ANNUAL MEETING WITH THE NETWORK INSTEAD ADVERSITY BROUGHT UNITY AMONG THE AFFILIATES WHEN NBC STAR BILL COSBY MADE A SPONTANEOUS TRIP TO THE MEETING JUST TO TELL THEM THAT FROM HIS PERSPECTIVE THE BAD DAYS ARE OVER STATION EXECUTIVES RESPONDED BY GIVING HIM NOT ONE BUT TWO STANDING OVATIONS I THINK THE CONFUSION IS OVER THE CONFUSION OVER WHAT TO PUT ON THE AIR MR COSBY TOLD AFFILIATES AS FOR NBC PRESIDENT ROBERT WRIGHT MR COSBY SAID WHEN HE FIRST CAME ON BOARD HE WAS A BEANCOUNTER BUT HE HAS BEEN TAUGHT YOU'RE LOOKING AT A BEANCOUNTER WHO IS A HUMAN BEING NOW IT WAS HIGH PRAISE FROM A MAN WHO IS SOMETHING AKIN TO A GOD AT NBC WHERE HE GOT HIS START ON I SPY AND GAVE NBC SOME OF ITS BEST YEARS EVER WITH THE COSBY SHOW MR COSBY WILL RETURN TO NBC NEXT YEAR TO DO FOUR MOVIES THAT WILL LATER BE SPUN OFF INTO A WEEKLY SERIES DESPITE HIS OPTIMISM THERE ARE FEW CONCRETE SIGNS THAT NBC HAS TURNED AROUND ALBEIT THE GENERAL ELECTRIC CO UNIT IS PUTTING TOGETHER A STRONG PERFORMANCE IN THE ONGOING MAY SWEEPS RATINGS RACE WHICH AFFILIATES WILL USE TO SET FUTURE AD RATES BUT STATION MANAGERS SAY THEY ARE EMBRACING THE PROMISES THAT NBC IS PUTTING FORTH INCLUDING A PLEDGE FROM JOHN F WELCH CHAIRMAN OF GENERAL ELECTRIC THAT THE COMPANY IS COMMITTED TO SEEING NBC COME BACK FROM ITS THIRDPLACE MORASS IN PRIME TIME WE'RE SEEING PROGRAMS OF A QUALITY WE HAVEN'T SEEN IN A LONG LONG TIME SAID JIM WATERBURY GENERAL MANAGER OF KWWL IN WATERLOO IOWA AND CHAIRMAN OF THE AFFILIATE BOARD 9305190158 930519 INTERNATIONAL STOCKS OF BIG JAPANESE BROKERAGE FIRMS REMAIN LOFTY DESPITE DISMAL EARNINGS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S UPPERTIER AND MIDDLETIER SECURITIES HOUSES AS WIDELY EXPECTED REPORTED LOSSES OR GREATLY REDUCED EARNINGS FOR THE YEAR ENDED MARCH 31 BUT THE DISMAL PICTURE HAS FAILED TO CURB A BIDDING FRENZY FOR BROKERAGE SHARES SPURRED BY THE RECENT EXPLOSION IN TRADING VOLUME ON THE TOKYO EXCHANGE PLUS COSTCUTTING BY THE COMPANIES ARE THESE COMPANIES A GOOD BET FOR INVESTORS NOZOMU KUNISHIGE AN ANALYST AT KLEINWORT BENSON INTERNATIONAL INC BELIEVES THEY ARE HE SAYS IF STOCK PRICES REMAIN FIRM OVERALL AND TRADING VOLUME ON THE TOKYO EXCHANGE STAYS ABOVE 600 MILLION SHARES A DAY AS IT DID IN APRIL THE SECURITIES FIRMS WILL REACH PROFIT LEVELS 70 TO 80 OF THEIR PEAK IN 1989 BUT ALARM BELLS ARE SOUNDING INDEED ANALYSTS THINK JAPAN'S SECURITIES INDUSTRY IS STILL IN NEED OF A MAJOR SHAKEOUT A RECENT REPORT BY MOODY'S INVESTORS SERVICE INC SAYS POOR MARKET CONDITIONS FOR JAPAN'S BIGGEST SECURITIES FIRMS WILL CONTINUE TO HAMPER IMPROVEMENT OF THE CREDIT RATINGS OF THESE INSTITUTIONS FOR THE FORESEEABLE FUTURE MIDSIZE FIRMS STILL HAVE EXTRA STAFF AND EXPENSIVE OFFICES WHILE SMALLER FIRMS NO LONGER HAVE THE BUSINESS THEY NEED TO STAY AFLOAT INDEED INDUSTRY ANALYSTS SAY THE JAPANESE BUREAUCRACY'S AVERSION TO BANKRUPTCIES HAS LED IT TO HELP STRUGGLING MIDSIZE FIRMS STAY IN BUSINESS THAT HAS WEIGHED DOWN THE ENTIRE INDUSTRY THE ANALYSTS SAY AND MEANS THE BROKERAGE BUSINESS MAY BE IN FOR A LONG PERIOD OF STAGNATION MARKET DISCIPLINE IS BEING KICKED IN THE TEETH SAYS DAVID ATKINSON ANALYST AT GOLDMAN SACHS JAPAN CORP THERE ARE TOO MANY BROKERS JAPAN'S BIG FOUR NOMURA SECURITIES CO DAIWA SECURITIES CO NIKKO SECURITIES CO AND YAMAICHI SECURITIES CO HAD LITTLE TO CHEER ABOUT WHEN THEY RELEASED THEIR FISCAL YEAR RESULTS TUESDAY NOMURA JAPAN'S BIGGEST SECURITIES FIRM REPORTED A PRETAX PROFIT OF 24 BILLION YEN 215 MILLION DOWN 95 FROM THE YEAR EARLIER ON REVENUE OF 3447 BILLION YEN NIKKO HAD A PRETAX LOSS OF 25 BILLION YEN ON REVENUE OF 2301 BILLION YEN WHILE DAIWA HAD A PRETAX LOSS OF 73 BILLION YEN ON REVENUE OF 2471 BILLION YEN YAMAICHI REPORTED A PRETAX LOSS OF 374 BILLION YEN ON REVENUE OF 1887 BILLION YEN ALL OF THE MIDDLETIER FIRMS REPORTED LOSSES BUT SOME OF THE WORST EARNINGS PERFORMERS HAVE BEEN THE STARS OF THE RALLY IN BROKERAGE STOCKS YAMAICHI'S STOCK PRICE IS UP 63 SINCE THE MARKET RALLY STARTED IN MARCH WHILE NOMURA'S IS UP 41 WHILE THE INDUSTRY IS ENCOURAGED BY APRIL'S AVERAGE DAILY TRADING VOLUME OF ABOUT 660 MILLION SHARES THAT'S LESS THAN A QUARTER OF THE RECORD TRADING VOLUME SET IN 1989 SO FAR IN MAY THE DAILY AVERAGE HAS DECLINED TO ABOUT 540 MILLION SHARES PEOPLE TALK BULLISHLY BUT IN THEIR OWN MINDS THEY'RE ST WORRIED ABOUT THE HEALTH OF THE MARKET SAYS SHOZO YORITA PRESIDENT OF DAITO SECURITIES CO THE AMOUNT OF MONEY INVESTED IN THE MARKET IN THE PAST FEW MONTHS HAS BEEN BIG BUT THE NUMBER OF INVESTORS IS LIMITED CONFIDENCE IN A MARKET RECOVERY WON'T SPREAD UNTIL MORE INVESTORS JUMP IN HE SAYS ANALYSTS WHO ARE BULLISH ON THE INDUSTRY CITE MAJOR COSTCUTTING IN RECENT MONTHS LARGELY IN PAYROLL THE NUMBER OF JOBS HAS DROPPED TO 142000 FROM 162000 THREE YEARS AGO MR KUNISHIGE BELIEVES COSTCUTTING HAS REDUCED THE INDUSTRY'S OPERATING EXPENSES BY 30 FROM ITS PEAK BUT EVEN HE SAYS MORE PAYROLL CUTS ARE NEEDED THE REDUCTIONS SO FAR HAVE BEEN LARGELY THROUGH ATTRITION PARTICULARLY AT THE LOW END OF THE SCALE CUTTING HIGHERPAID LONGTIME WORKERS WHO ARE NOMINALLY PROTECTED BY JAPAN'S LIFETIME EMPLOYMENT SYSTEM WOULD BE MORE DIFFICULT SO UNLESS TRADING VOLUME IMPROVES THE LONGPREDICTED SHAKEOUT IN JAPAN'S SECURITIES INDUSTRY WILL LIKELY BEGIN CLAIMING ITS FIRST VICTIMS ANALYSTS SAY ALICIA OGAWA FINANCIAL ANALYST AT SALOMON BROTHERS ASIA NOTES THAT THE MARKET SHARE OF THE MIDLEVEL FIRMS HAS FALLEN TO ABOUT 27 DOWN FROM 32 TWO YEARS AGO THERE ARE SEVERAL COMPANIES WITH LESS THAN A 1 SHARE SHE SAYS I DON'T UNDERSTAND WHY THEY'RE NOT DYING DAITO'S MR YORITA THINKS ITS ONLY A MATTER OF TIME FIVE MORE YEARS WILL BE TOO LONG FOR SOME COMPANIES HE SAYS SOME WILL BE ABLE TO SURVIVE FOR ONLY ANOTHER YEAR OR TWO 9305190157 930519 INTERNATIONAL HONDA MOTOR'S PROFIT FELL 61 IN ITS 4TH PERIOD BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO HONDA MOTOR CO BRUISED BY A STEEP FALL IN US AUTO SALES AND THE YEN'S SHARP APPRECIATION SAID ITS CONSOLIDATED NET INCOME FELL 61 IN THE FOURTH QUARTER ENDED MARCH 31 TO 427 BILLION YEN 384 MILLION FROM 1104 BILLION YEN A YEAR EARLIER IN THE YEAR HONDA'S CONSOLIDATED NET DROPPED 41 TO 3831 BILLION YEN 344 MILLION FROM 6488 BILLION YEN IN THE PREVIOUS YEAR PRETAX PROFIT FOR THE YEAR FELL 32 TO 8856 BILLION YEN FROM 13076 BILLION YEN THE BUSINESS YEAR THAT BEGAN APRIL 1 PROMISES TO BE EVEN TOUGHER THOUGH HONDA SAID IT EXPECTS TO SELL MORE CARS IT PREDICTED THAT ITS GROUP NET WILL FALL ANOTHER 40 TO 230 BILLION YEN AND SALES WILL SLIP 3 TO 40 TRILLION YEN MAINLY BECAUSE OF THE YEN'S RISE AGAINST OTHER CURRENCIES HONDA'S BIGGEST PROBLEM OF LATE DECLINING SALES IN THE US COMES AT A TIME WHEN US CAR SALES OVERALL HAVE BEEN IMPROVING THAT'S MAINLY BECAUSE DEMAND HAS WEAKENED FOR HONDA'S AGING BREADANDBUTTER MODEL THE MIDSIZE ACCORD HONDA SAID IT SOLD A TOTAL OF 794000 VEHICLES IN NORTH AMERICA IN THE YEAR THROUGH MARCH 31 DOWN 17 FROM THE YEAR BEFORE HONDA ALSO LACKS VEHICLES OF ITS OWN IN CHIEF SECTORS OF THE AUTO MARKET INCLUDING MINIVANS AND RECREATIONAL VEHICLES THE COMPANY SAYS IT IS DEVELOPING SOME NEW MODELS TO HELP FILL THE GAP IN ITS LINEUP SHIGEKI HAYASHI AN OFFICIAL IN HONDA'S FINANCE DIVISION SAID REVENUE WOULD HAVE BEEN 70 BILLION YEN HIGHER IN THE LATEST YEAR IF THE YEN HADN'T APPRECIATED AGAINST THE DOLLAR A WEAKER DOLLAR MAKES HONDA'S OVERSEAS SALES WORTH LESS IN YEN TERMS AND TWOTHIRDS OF HONDA'S SALES CAME FROM OVERSEAS IN THE LATEST YEAR HONDA'S OVERALL SALES TOTALED 4132 TRILLION YEN IN THE LATEST YEAR DOWN 59 FROM 4392 TRILLION YEN A YEAR EARLIER A HIGHER YEN ALSO FORCES THE COMPANY TO RAISE PRICES OVERSEASSOMETHING IT HAS DONE FOUR TIMES IN THE PAST 15 MONTHS IN THE US HONDA'S ACCORD NOW COSTS ROUGHLY 20 MORE THAN COMPETING VEHICLES SUCH AS FORD MOTOR CO'S TAURUS AND CHRYSLER CORP'S LH SEDANS MR HAYASHI SAID THE COMPANY DIDN'T SAY HOW MANY CARS IT EXPECTS TO SELL WORLDWIDE THIS YEAR HONDA'S BLEAK OUTLOOK FOR THE CURRENT YEAR COULD GET EVEN WORSE IF THE YEN CONTINUES TO STRENGTHEN AGAINST THE DOLLAR HONDA'S FORECAST ASSUMES AN EXCHANGE RATE OF 115 YEN TO THE DOLLAR BUT THE DOLLAR HAS BEEN TRADING AT A LOWER RATE LATELY AROUND 111 YEN 9305190156 930519 ECONOMY HOUSING STARTS JUMPED 67 DURING APRIL SOME ANALYSTS EXPECTED A STRONGER REBOUND AFTER A STORMY MARCH BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSING STARTS REBOUNDED IN APRIL FROM THE STORMBESET MARCH LEVEL APRIL STARTS INCREASED 67 TO A SEASONALLY ADJUSTED ANNUAL RATE OF 1213000 FROM A REVISED 1137000 IN MARCH THE COMMERCE DEPARTMENT SAID THE MARCH FIGURE WHICH WAS THE LOWEST IN EIGHT MONTHS WAS 36 BELOW FEBRUARY'S FIGURE DAVID SEIDERS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS SAID THE APRIL REPORT SHOWED A FAIRLY DECENT INCREASE BUT FRANKLY NOT AS GOOD AS EXPECTED GIVEN THE FIRSTQUARTER COLLAPSE THE APRIL TOTAL WAS STILL NOT A TERRIBLY STRONG NUMBER ADDED DAVID BERSON CHIEF ECONOMIST FOR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION BOTH ANALYSTS STUCK BY THEIR PREDICTIONS THAT HOUSING STARTS FOR THE YEAR WOULD REACH ABOUT 13 MILLION UP FROM 12 MILLION IN 1992 WE STILL THINK THERE'S A LOT OF PENTUP DEMAND OUT THERE SAID MR SEIDERS BUT STRONGER JOB GROWTH WILL HAVE TO OCCUR SAID MR BERSON IN APRIL SINGLEFAMILY HOME CONSTRUCTION ROSE 63 TO A 1063000 ANNUAL RATE MULTIFAMILY BUILDING INCREASED 95 TO A 150000UNIT RATE BUILDING PERMITS AN INDICATION OF FUTURE CONSTRUCTION ROSE 58 TO AN ANNUAL RATE OF 1094000 THE LARGEST REBOUND IN STARTS WAS 226 IN THE NORTHEAST WHICH WAS HIT HARD BY A BLIZZARD IN MARCH THE SOUTH AND WEST ALSO SHOWED INCREASES BUT STARTS DECLINED SLIGHTLY IN THE MIDWEST THE HOMEBUILDING REVIVAL IN APRIL WAS AT LEAST PARTLY A RECOVERY FROM THE SNOWSTORM EFFECTS IN MARCH ECONOMISTS SAID THEY NOTED THAT AUTO SALES WHICH ARE ALSO WEATHER SENSITIVE REBOUNDED IN APRIL TOO EVEN SO THERE WAS A WEATHER HANGOVER IN APRIL WITH SOGGY GROUND AND RAIN MR SEIDERS NOTED HE ALSO SAID THE EXPLOSION IN LUMBER PRICES FROM OCTOBER TO MIDMARCH HAS AFFECTED HOUSING STARTS IN AN APRIL SURVEY THE HOME BUILDERS ASSOCIATION FOUND THAT 41 OF ITS MEMBERS SAID THEY WERE POSTPONING NEW BUILDING UNTIL LUMBER PRICES DECLINED LUMBER PRICES HAVE IN FACT GONE DOWN ABOUT 38 SINCE THEIR MARCH 19 PEAK MR SEIDERS SAID CONSUMERS ARE ALSO CONCERNED ABOUT THE OUTLOOK FOR HIGHER INCOME TAXES AND TAXES RELATED TO HEALTH CARE AND POSSIBLY ABOUT HIGHER INTEREST RATES HE SAID WITH SOME NEW INFLATION FEARS THE AVERAGE RATE FOR A 30YEAR FIXEDRATE MORTGAGE HAS INCREASED TO 775 FROM 75 MR SEIDERS SAID THOUGH HE SAID HE THINKS THE RISE IS ONLY TEMPORARY 9305190155 930519 SURGING HONG KONG MARKET BRINGS WORRIES ABOUT A TUMBLE BY MICHAEL R SESIT AND ROBERT STEINER STAFF REPORTERS TO THE WALL STREET JOURNAL THE HONG KONG STOCK MARKET SIZZLED TO ANOTHER RECORD BUT SOME BIGTIME INVESTORS ARE WORRIED THAT IT IS ON THE VERGE OF OVERHEATING TUESDAY THE HANG SENG INDEX HIT A NEW HIGH OF 714930 IT'S UP NEARLY 30 THIS YEAR AND 66 SINCE THE END OF 1991 BUT ANXIETIES ARE RISING THAT HONG KONG SHARE PRICES WILL FALL VICTIM TO CHINA'S FEVERED ECONOMY POSSIBLE US BARRIERS TO CHINESE IMPORTS AND THE COLONY'S OVERPRICED PROPERTY MARKET THE STOCK MARKET IS VERY VERY SPECULATIVE RIGHT NOW WARNS NICK CARN CHIEF INVESTMENT OFFICER OF DRAYCOTT PARTNERS IN LONDON HE POINTS TO A RECENT HONG KONG STOCK OFFERING BY DENWAY INVESTMENT LTD THAT WAS 657 TIMES OVERSUBSCRIBED JUST AS ASTOUNDING HE SAYS IS THE WAY THE CHINESE AUTO MAKER EARNED ALMOST AS MUCH AS ITS 1991 PROFITS BY INVESTING FOR A WEEK THE MONEY IT EVENTUALLY RETURNED TO THE UNSUCCESSFUL BIDDERS I DON'T THINK THERE'S A WHOLE LOT OF OPPORTUNITY THERE THE HONG KONG STOCK MARKET IS JUST OKAY WITH THE POTENTIAL FOR DISASTER SAYS JOHN HICKLING A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IN BOSTON A LOT OF THE ATTRACTIVE CHINA PLAYS ARE ALREADY PICKED OVER LAST YEAR AND THIS MANY INVESTORS AND STRATEGISTS HAVE BEEN PLACING BIG BETS ON THE HONG KONG STOCK MARKET AMERICANS ALONE STEPPED UP THEIR PURCHASES OF HONG KONG SHARES BY 163 IN 1992 THE COLONY THEY ARGUED WAS A NATURAL BENEFICIARY OF THE US ECONOMIC RECOVERY AND BECAUSE ROUGHLY 60 OF CHINA'S EXPORTS GO THROUGH HONG KONG AND MANY HONG KONG COMPANIES HAVE LARGE INVESTMENTS IN CHINA THE MARKET WAS CONSIDERED AN IDEAL PLAY ON CHINA'S BOOMING ECONOMY ALSO THE HONG KONG DOLLAR IS PEGGED TO THE US DOLLAR THAT MEANT THAT US INVESTORS WERE INSULATED FROM CURRENCY SWINGS AND BECAUSE MANY ANALYSTS WERE FORECASTING THAT THE DOLLAR WOULD RISE THAT EUROPEAN AND JAPANESE INVESTORS COULD ACTUALLY SEE THEIR PORTFOLIOS INCREASE IN VALUE BUT MICHAEL HOWELL CHIEF GLOBAL STRATEGIST AT BARING SECURITIES LTD IN LONDON SAYS THE COMBINATION OF SLOW GROWTH AND SLUGGISH CONSUMER SPENDING IN THE US COULD HURT HONG KONG EXPORTS AND THE PROFITS OF COMPANIES LOCATED THERE IN ADDITION THE DOLLAR HAS BEEN SURPRISINGLY WEAK THIS YEAR AND WHAT SCARES MANY MONEY MANAGERS IS THAT PROPERTYRELATED SHARES WHICH REPRESENT 4050 OF SOME HONG KONG STOCK INDEXES HAVE BEEN A DRIVING FORCE BEHIND THE STOCK MARKET'S CURRENT RALLY MOST IMPORTANTLY THE CHINA PLAY MAY BE WANING AT LEAST TEMPORARILY FIRSTQUARTER URBAN INFLATION IN CHINA STOOD AT 16 ON THE BLACK MARKET CHINA'S CURRENCY THE RENMINBI HAS FALLEN MORE THAN 25 AGAINST THE DOLLAR IN THE PAST YEAR AND IS GETTING WEAKER IMPORTS ARE GROWING FASTER THAN EXPORTS NEW FACTORIES AND OTHER CONSTRUCTION ARE ACCELERATING AT A PACE TOO FRENETIC TO BE SUSTAINED SAYS MICHAEL WATT OF HENDERSON INVESTMENT SERVICES LTD LONDON BECAUSE CHINA HAS BEEN ACCUSED OF VIOLATING HUMAN RIGHTS AND INTERNATIONAL AGREEMENTS ON WEAPONS SALES SOME MONEY MANAGERS WORRY THAT THE CLINTON ADMINISTRATION WILL ATTACH CONDITIONS WHEN IT RENEWS THE COUNTRY'S MOSTFAVOREDNATION TRADE STATUS THOSE CONDITIONS WILL RESULT IN TENSIONS BETWEEN THE US AND CHINA AND THAT WON'T BE GOOD FOR THE HONG KONG STOCK MARKET SAYS WILLIAM L WILBY A VICE PRESIDENT AT OPPENHEIMER MANAGEMENT CORP IN NEW YORK HE ALSO BELIEVES THAT CHINA WILL HAVE TO ACT FORCEFULLY TO SLOW INFLATION A LOT OF HONG KONG COMPANIES ARE DERIVING A SIGNIFICANT PORTION OF THEIR EARNINGS FROM CHINA AND IF CHINA TIGHTENS MONETARY POLICY IT WILL SLOW GROWTH AND HURT THOSE EARNINGS SAYS MR WILBY FURTHERMORE SUCH ACTION COULD SLOW THE DEPRECIATION OF THE RENMINBI WHICH IN TURN WILL SPELL HIGHER FOOD PRICES IN HONG KONG THAT'S BECAUSE THE COLONY IMPORTS MUCH OF ITS FOOD FROM CHINA ON THE OTHER HAND IF THE RENMINBI KEEPS FALLING CHINA'S INFLATION WILL KEEP RISING AND THE VALUE OF CHINESE INVESTMENTS WILL KEEP DEPRECIATING CHINA'S GOVERNMENT CONTENDS IT WON'T OFFICIALLY DEVALUE THE RENMINBI BUT ALL GOVERNMENTS SAY THAT ABOUT THEIR CURRENCIES SAYS A SKEPTICAL MR HICKLING OF FIDELITY WHAT'S MORE MR WILBY ARGUES THAT HONG KONG STOCKS AREN'T AS CHEAP AS THEY MAY SEEM BECAUSE HONG KONG HAS THE HIGHEST INFLATION RATE NEAR 8 OF ALL THE MAJOR ASIAN MARKETS HE SAYS THAT INFLATIONADJUSTED EARNINGS GROWTH IS SOMEWHAT LESS THAN THE 1517 ESTIMATES OF NOMINAL PROFIT EXPANSION FURTHERMORE HE SAYS HONG KONG IS ONE OF THE MOST EXPENSIVE MARKETS IN THE WORLD BASED ON PRICE TO CASH FLOW BECAUSE OF THESE AND OTHER APPREHENSIONS MR WILBY HAS BEEN TAKING PROFITS IN HONG KONG SHARES AND GRADUALLY REDUCING HIS HOLDINGS OF COMPANIES EXPOSED TO THE PROPERTY MARKET AT THE SAME TIME HE HAS BEEN TRYING TO IDENTIFY DEFENSIVE STOCKS THAT HAVE THEIR OWN EARNINGS DYNAMIC THAT IS SOMEWHAT INSULATED FROM THE CYCLE IN CHINA THREE FAVORITES ARE FIRST PACIFIC CO FOR ITS TELECOMMUNICATIONS BUSINESS AND BECAUSE IT'S CHEAP CHAMPION TECHNOLOGY HOLDINGS LTD A MAKER OF PAGING DEVICES THAT USE CHINESE CHARACTERS AND ORIENTAL PRESS GROUP LTD THE PUBLISHER OF A LEADING CHINESE LANGUAGE NEWSPAPER IN HONG KONG NOT EVERYONE OF COURSE IS NEGATIVE THE BULL MARKET ISN'T OVER CONTENDS MARCEL MARENTINI HEAD OF FAR EAST EQUITY RESEARCH FOR BANK JULIUS BAER & CO IN ZURICH WITH HONG KONG SHARES SELLING AT 13 TO 14 TIMES AVERAGE EARNINGS AND WITH DOUBLEDIGIT EARNINGS GROWTH PROJECTED FOR THE NEXT TWO YEARS OR SO THE MARKET ISN'T EXPENSIVE AT ALL HE SAYS MR WATT A PORTFOLIO MANAGER AT HENDERSON INVESTMENT BELIEVES THAT THE HUGE FLOW OF FOREIGN CAPITAL SEEKING TO TAKE ADVANTAGE OF CHINA'S FASTGROWING ECONOMY WILL KEEP THE MARKET FROM SERIOUSLY FALLING IN THE SHORT RUN HE NOTES THAT A LOT OF THAT MONEY IS AMERICAN MONEY STILL MR WATT CONCEDES THERE IS A BUBBLE THAT'S BEING BLOWN UP I WOULDN'T BE SURPRISED TO SEE A BLOWOUT IN SIX MONTHS HE RECOMMENDS THAT INVESTORS BEGIN TO REEVALUATE THEIR HONG KONG HOLDINGS AS THE HANG SENG INDEX APPROACHES 8000 9305190154 930519 WELDOTRON'S UNSOLICITED OFFER PISCATAWAY NJ WELDOTRON CORP SAID IT RECEIVED AN UNSOLICITED OFFER FROM SFM CORP TO BUY 500000 TO 750000 OF ITS SHARES FOR 225 EACH WELDOTRON A MAKER OF FOOD AND INDUSTRIALPACKAGING MACHINES SAID THE OFFER IS SUBJECT TO A VARIETY OF CONDITIONS INCLUDING GAINING CONTROL OF THE BOARD IF THE OFFER IS APPROVED AT WELDOTRON'S NEXT BOARD MEETING SFM A NEW YORKBASED ELECTRICMOTOR MAKER WOULD HAVE MORE THAN 19 OF WELDOTRON'S SHARES OUTSTANDING IF IT BOUGHT 500000 SHARES YESTERDAY IN TRADING ON THE AMERICAN STOCK EXCHANGE WELDOTRON SHARES CLOSED AT 250 OFF 375 CENTS A SHARE 9305190153 930519 MITCHELL ENERGY OFFERING THE WOODLANDS TEXAS MITCHELL ENERGY & DEVELOPMENT CORP SAID IT RECEIVED 1234 MILLION IN NET PROCEEDS FROM ITS RECENTLY COMPLETED PUBLIC OFFERING OF 59 MILLION CLASS B COMMON SHARES THE OIL AND NATURAL GAS EXPLORATION AND PRODUCTION COMPANY SAID IT WILL USE 82 MILLION OF THE PROCEEDS TO BUY THE REST OF MEC DEVELOPMENT LTD A DRILLING PARTNERSHIP AND THE REMAINDER FOR GENERAL CORPORATE PURPOSES INCLUDING DRILLING 9305190152 930519 LEVITZ OFFERS TO BUY DEBENTURES BOCA RATON FLA LEVITZ FURNITURE INC SAID IT WAS MAKING AN OFFER TO PURCHASE ALL OF ITS SENIOR DEFERRED COUPON DEBENTURES DUE 2002 AT A PREMIUM TO THEIR ACCRETED VALUE THE OFFER WILL EXPIRE JUNE 15 UNLESS EXTENDED LEVITZ IS ALSO SOLICITING CONSENTS FROM HOLDERS OF THE DEBENTURES TO MODIFY CERTAIN TERMS OF THE INDENTURE UNDER WHICH THE DEBENTURES WERE ISSUED THE OFFER IS PART OF THE RETAILER'S RECAPITALIZATION PLAN WHICH INCLUDES AN INITIAL PUBLIC OFFERING OF 13 MILLION COMMON SHARES AND A PUBLIC OFFERING OF 85 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 OF LEVITZ FURNITURE CORP A UNIT THE OFFER IS CONDITIONED UPON THE TENDER OF AT LEAST 80 OF THE DEBENTURES AFTER THE EXERCISE OF THE WARRANTS WHICH WOULD BE AN AGGREGATE OF NO LESS THAN 1165 MILLION PRINCIPAL AMOUNT OR 658 MILLION DISCOUNTED FACE VALUE 9305190151 930519 INTERNATIONAL TRADE SURPLUS OF JAPAN GREW 44 LAST MONTH GAP WITH US WIDENED 23 GIVING AMERICANS MORE GRIST FOR BATTLE BY JOHN BUSSEY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE US GOT MORE GRIST FOR ITS TRADE BATTLE WITH TOKYO AS JAPAN ANNOUNCED THAT ITS WORLDWIDE MERCHANDISE TRADE SURPLUS SOARED 44 IN APRIL FROM A YEAR EARLIER TO 1025 BILLION THAT'S THE 28TH CONSECUTIVE MONTHLY WIDENING IN THE NATION'S SURPLUS AND THE BIGGEST JUMP EVER FOR AN APRIL JAPAN'S SURPLUS WITH THE US WIDENED 23 TO 403 BILLION IN APRIL WHILE ITS SURPLUS WITH ASIA ROCKETED 78 TO 471 BILLION ITS SURPLUS WITH THE EUROPEAN COMMUNITY NARROWED 64 TO 262 BILLION THE APRIL NUMBERS ARE ONE OF THE CLINTON ADMINISTRATION'S FIRST READINGS ON HOW THE STRENGTHENING YEN HAS AFFECTED THE TRADE IMBALANCE MR CLINTON HAS MADE A STRONGER YEN A CORNERSTONE OF HIS TRADE POLICY AND COMMENTS BY MR CLINTON AND MEMBERS OF HIS ADMINISTRATION HAVE SENT THE CURRENCY SOARING AGAINST THE DOLLAR IN THE PAST SEVERAL MONTHS THE ADMINISTRATION'S IDEA IS TO MAKE JAPANESE PRODUCTS MORE EXPENSIVE FOR US CONSUMERS IN DOLLAR TERMS AND THUS CUT JAPANESE EXPORTS AT THE SAME TIME US PRODUCTS BECOME CHEAPER FOR JAPANESE CONSUMERS IN YEN TERMS THEORETICALLY GIVING A BOOST TO US EXPORTERS IT'S A CONTROVERSIAL POLICY AT BEST MANY TRADE EXPERTS BELIEVE A STRONGER YEN IS A MIXED BLESSING AND THE APRIL NUMBERS INDICATE THE APPROACH WILL TAKE TIME TO HAVE AN EFFECT INDEED A STRONGER YEN ACTUALLY WIDENS THE TRADE IMBALANCE IN THE SHORT RUN EVEN IF THE AMOUNT OF TWOWAY TRADE REMAINS THE SAME THE REASON TRADE IS DENOMINATED IN DOLLARS SO IT TAKES MORE DOLLARS TO BUY THE SAME AMOUNT OF JAPANESE GOODS THE SOCALLED JCURVE EFFECT THE VALUE OF JAPANESE EXPORTS TO THE US JUMPED 14 IN APRIL WHEN COMPARED WITH THE YEARAGO MONTH BUT ABOUT EIGHT PERCENTAGE POINTS OF THAT INCREASE ARE ATTRIBUTABLE TO THE STRENGTHENED YEN SAID PETER MORGAN AN ECONOMIST WITH MERRILL LYNCH JAPAN INC BUT THE VOLUME OF GOODS FROM JAPAN WHICH IS IN THE MIDST OF AN ECONOMIC SLUMP IS ALSO INCREASING WHICH IS WHAT WORRIES WASHINGTON YOU'RE DEFINITELY SEEING THE TREND TOWARD PUSHING UP THE SURPLUS MR MORGAN SAID SAID SOZABURO OKAMATSU AN OFFICIAL WITH THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY I THINK THE REASON WHY THE IMBALANCE IS INCREASING SO RAPIDLY IS THE SLOWDOWN IN THE JAPANESE ECONOMY IN APRIL JAPAN'S TOTAL EXPORTS WERE 3068 BILLION UP 13 FROM A YEAR AGO TOTAL IMPORTS WERE 2043 BILLION UP 17 THE US HAS BEEN VIGOROUSLY RATTLING THE TRADE SABER AND HAS TOLD JAPAN IT WANTS PROGRESS MADE IN BILATERAL DISPUTES IN SEVERAL SECTORS BEFORE THE GROUP OF SEVEN INDUSTRIALIZED NATIONS MEETS IN TOKYO IN JULY JAPAN INSISTS THAT ITS MARKETS ARE OPEN THAT THE US IS BEING UNREASONABLE THAT DISPUTES SHOULD BE RESOLVED THROUGH THE MULTILATERAL GENERAL AGREEMENT ON TARIFFS AND TRADE AND THAT JAPAN MAY RETALIATE IF THE US HARANGUE PERSISTS ANOTHER NOTABLE TREND IN THE APRIL TRADE STATISTICS IS JAPAN'S BOOMING BUSINESS WITH ASIA A JUMP THAT REFLECTS THE STRENGTH OF ECONOMIES THROUGHOUT THE REGION CHINA IN PARTICULAR HAS BEEN ABSORBING INCREASING AMOUNTS OF JAPANESE INVESTMENT AND GOODS JAPAN'S EXPORTS TO CHINA JUMPED 56 IN APRIL LED BY PRODUCTS SUCH AS TRANSPORTATION EQUIPMENT AND PASSENGER VEHICLES IN VALUE TERMS CHINESE PURCHASES OF JAPANESE PASSENGER VEHICLES ROSE 940 IN THE PERIOD 9305190150 930519 BUSINESS BRIEF BODDIENOELL RESTAURANT PROPERTIES AGREEMENT SET ON ACQUIRING APARTMENTS SHOPPING SITES BODDIENOELL RESTAURANT PROPERTIES INC SAID IT AGREED TO ACQUIRE 11 APARTMENT COMPLEXES AND THREE SHOPPING CENTERS FOR 22 MILLION IN STOCK AND ASSUMPTION OF SOME DEBT FROM PARTNERSHIPS AFFILIATED WITH ITS TOP EXECUTIVES THE ROCKY MOUNT NC REAL ESTATE INVESTMENT TRUST SAID IT WOULD ASSUME 1034 MILLION IN MORTGAGE INDEBTEDNESS FOR THE PURCHASE THE PROPERTIES ARE CONTROLLED BY PARTNERSHIPS OWNED IN PART BY B MAYO BODDIE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BODDIENOELL AND BY NICHOLAS B BODDIE THE COMPANY'S PRESIDENT BODDIENOELL SAID IT ALSO PLANS TO ACQUIRE ANOTHER APARTMENT COMPLEX FOR 143 MILLION FROM AN UNAFFLIATED PARTY THE APARTMENT COMPLEXES IN NORTH CAROLINA AND VIRGINIA REPRESENT 2653 UNITS WHILE THE SHOPPING CENTERS IN BURLINGTON NC RALEIGH NC AND VIRGINIA BEACH VA REPRESENT 237350 SQUARE FEET IN TOTAL THE COMPANY SAID 9305190149 930519 WHO'S NEWS CHEMED CORP CHEMED CORP CINCINNATI THIS DIVERSIFIED CORPORATION WITH INTERESTS IN MEDICAL AND DENTAL SUPPLY MANUFACTURING AND DISTRIBUTION HOSPICE CARE AND PHARMACY MANAGEMENT AMONG OTHER THINGS REDUCED ITS BOARD SIZE BY FOUR MEMBERS TO 18 DIRECTORS WHO WEREN'T REELECTED ARE ROBERT B GARBER 66 YEARS OLD DOUGLAS B HARPER 49 ANTHONY C HUTTON 52 AND JUDI K O'TEEN 45 9305190148 930519 WHO'S NEWS ALTEON INC ALTEON INC NORTHVALE NJ JERE E GOYAN 62 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DEVELOPMENTSTAGE PHARMACEUTICALS COMPANY AS PRESIDENT HE SUCCEEDS CHARLES A FADEN 63 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CHIEF OPERATING OFFICER POST IS NEWLY CREATED MR GOYAN WAS ALTEON'S SENIOR VICE PRESIDENT FOR RESEARCH AND DEVELOPMENT 9305190147 930519 CINCINNATI MILACRON LOWERS DEBT CINCINNATI MACHINE TOOLS MAKER CINCINNATI MILACRON INC SAID IT PAID DOWN 60 MILLION OF THE 70 MILLION OUTSTANDING PRINCIPAL AMOUNT OF 12 SINKING FUND DEBENTURES DUE JULY 15 2010 THE DEBENTURES WERE REDEEMED AT 1078 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST 9305190146 930519 INTERNATIONAL PHILIPPINES' DEFICIT WIDENS MANILA THE PHILIPPINES' TRADE DEFICIT IN MARCH WIDENED 56 TO 570 MILLION FROM 365 MILLION IN FEBRUARY THE NATIONAL STATISTICS OFFICE SAID THE TRADE IMBALANCE WAS BLAMED ON ROBUST IMPORTS WHICH GREW 186 TO 14 BILLION FROM 118 BILLION IN FEBRUARY WHILE EXPORTS INCHED UP BY 16 IN MARCH TO 830 MILLION FROM 817 MILLION THE PREVIOUS MONTH BUT THE AGENCY SAID THE RISE IN IMPORTS DOESN'T SIGNAL A TRUE PICKUP IN THE ECONOMY BECAUSE BANKS CONTINUE TO EXPERIENCE SLUGGISH LOAN DEMAND THE PHILIPPINE ECONOMY IS DEPENDENT ON IMPORTS OF RAW MATERIALS AND CAPITAL EQUIPMENT 9305190145 930519 WHO'S NEWS LONDON FOG CORP LONDON FOG CORP ELDERSBURG MD JAMES F HANESCHLAGER 45 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF HUMAN RESOURCES AND A MEMBER OF THE OPERATING BOARD OF LONDONTOWN CORP A SUBSIDIARY OF LONDON FOG A MANUFACTURER OF OUTERWEAR MR HANESCHLAGER JOINED THE CORPORATION IN 1965 AND HAS SERVED AS VICE PRESIDENT OF HUMAN RESOURCES SINCE 1977 9305190144 930519 WHO'S NEWS FIRST DATA CORP FIRST DATA CORP NEW YORK ROBERT J LEVENSON 51 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT RESPONSIBLE FOR STRATEGIC PLANNING AND OTHER ASPECTS AT THIS PROVIDER OF INFORMATION AND TRANSACTIONPROCESSING SERVICES THE POSITION IS NEWLY CREATED MR LEVENSON IS A DIRECTOR OF FIRST DATA PRIOR TO JOINING THE COMPANY HE WAS CHIEF OPERATING OFFICER OF MEDCO CONTAINMENT SERVICES INC 9305190143 930519 WHO'S NEWS CARPENTER TECH CORP CARPENTER TECH CORP READING PA DEAN T WEEKS PREVIOUSLY SENIOR INSIDE SALES REPRESENTATIVE IN TORONTO WAS PROMOTED TO MANAGER OF UNITED KINGDOM OPERATIONS MR WEEKS 33 YEARS OLD WILL MANAGE CARPENTER'S NEW SPECIALTY METALS SERVICE CENTER IN REDDITCH ENGLAND CARPENTER MAKES SPECIALTY METALS IN BAR ROD WIRE STRIP AND BILLET FORM 9305190142 930519 WHO'S NEWS NATIONAL SANITARY SUPPLY CO NATIONAL SANITARY SUPPLY CO CINCINNATI JON D KRAHULIK 48 YEARS OLD ASSOCIATE JUSTICE OF THE SUPREME COURT OF INDIANA WAS NAMED TO THE NEW POST OF VICE CHAIRMAN OF THIS DISTRIBUTOR OF SANITARY MAINTENANCE SUPPLIES HE WILL STEP DOWN AS ASSOCIATE JUSTICE AT THE END OF OCTOBER THE COMPANY SAID ALSO ANTHONY C HUTTON 52 AND A VICE PRESIDENT OF CHEMED CORP WHICH OWNS A STAKE IN THE COMPANY WAS NAMED TO NATIONAL SANITARY'S BOARD THIS ACTION INCREASES BOARD SIZE TO 22 MEMBERS 9305190141 930519 INTERNATIONAL JAPAN MACHINERY ORDERS TOKYO MACHINERY ORDERS TO JAPANESE MAKERS IN MARCH WERE UP 11 TO 3971 TRILLION YEN 3567 BILLION FROM A YEAR EARLIER BEFORE ADJUSTMENT FOR SEASONAL FACTORS MARKING THE FIRST GAIN IN 12 MONTHS THE ECONOMIC PLANNING AGENCY REPORTED THE AGENCY PREDICTED MACHINERY ORDERS AFTER ADJUSTMENT FOR SEASONAL FACTORS WILL FALL BACK DURING THE APRILJUNE QUARTER FROM THE PRIOR THREE MONTHS FOLLOWING A REBOUND DURING THE JANUARYMARCH PERIOD 9305190140 930519 WHO'S NEWS LCI INTERNATIONAL INC LCI INTERNATIONAL INC DUBLIN OHIO KENNETH R SHOMAKER 33 YEARS OLD WHO HAS BEEN ACTING VICE PRESIDENT OF ENGINEERING AND OPERATIONS WAS NAMED TO THAT POST MR SHOMAKER SUCCEEDS ERV FONDRIEST WHO RETIRED IN OCTOBER IN ADDITION KEVIN R WRIGHT 39 FORMERLY SENIOR VICE PRESIDENT OF OPERATIONS AT LONG DISTANCE SERVICE INC MCLEAN VA WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF NETWORK TECHNOLOGY AND DEVELOPMENT LCI INTERNATIONAL A TELECOMMUNICATIONS CONCERN THAT PROVIDES VOICE DATA AND VIDEO TRANSMISSION SERVICES ACQUIRED LONG DISTANCE SERVICE LAST MONTH 9305190139 930519 WHO'S NEWS CANADIAN OCCIDENTAL PETROLEUM LTD CANADIAN OCCIDENTAL PETROLEUM LTD CALGARY ALBERTA BERNARD ISAUTIER 50 YEARS OLD WAS ELECTED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR HE SUCCEEDS J ANGUS MCKEE WHO RESIGNED THIS YEAR MR ISAUTIER A NATIVE OF FRANCE RESIGNED IN JANUARY AS CHAIRMAN OF A WHOLLY OWNED UNIT OF FRANCE'S STATEOWNED THOMSON SA DURING THE 1980S HE SERVED AS CHIEF EXECUTIVE OF SEVERAL CANADIAN ENERGY COMPANIES CANADIAN OCCIDENTAL IS AN OILANDGAS PRODUCER THAT IS 48OWNED BY OCCIDENTAL PETROLEUM CORP LOS ANGELES 9305190138 930519 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO DONALD A WINKLER 45 YEARS OLD FORMERLY DIVISION EXECUTIVE OF GLOBAL FUNDS TRANSFER AND FINANCIAL INFORMATION BUSINESSES AT CITICORP NEW YORK WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FINANCE ONE CORP A NEWLY FORMED UNIT OF THIS BANK HOLDING COMPANY'S BANC ONE DIVERSIFIED SERVICES CORP UNIT THE COMPANY SAID FINANCE ONE CORP WAS FORMED TO CREATE A NATIONAL CONSUMER FINANCE COMPANY WITH MULTIPLE LINES OF BUSINESS 9305190137 930519 INTERNATIONAL BERJAYA GROUP SELLS MUI STAKE KUALA LUMPUR BERJAYA GROUP OF MALAYSIA SAID IT SOLD A 29 STAKE IN MALAYAN UNITED INDUSTRIES BHD FOR 550 MILLION MALAYSIAN DOLLARS US2141 MILLION DRAWING TO A CLOSE A NEARLY TWOYEAR CONFRONTATION BETWEEN THE TWO GROUPS' CONTROLLING SHAREHOLDERS THE LONGEXPECTED DISPOSAL OF 190 MILLION MUI SHARES THROUGH PRIVATE PLACEMENTS AND THE OPEN MARKET ACCOUNTS FOR ALMOST ALL THE 31 STAKE THE BERJAYA COMPANIES HAD ACCUMULATED IN AN ABORTIVE ATTEMPT TO WRENCH CONTROL OF MUI FROM EXECUTIVE CHAIRMAN TAN SRI KHOO KAY PENG THAT BID HAD TRAPPED TAN SRI VINCENT TAN CHEE YIOUN'S BERJAYA GROUP WITH AN EXPENSIVE STAKE IN MUI FOR WHICH IT WAS INCURRING STIFF INTEREST EXPENSES BUT NO MUI BOARD REPRESENTATION OR CONTROL 9305190136 930519 WHO'S NEWS LOUISIANA LAND & EXPLORATION CO LOUISIANA LAND & EXPLORATION CO NEW ORLEANS VICTOR A RICE WAS NAMED TO THE BOARD OF THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY MR RICE 52 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF VARITY CORP A BUFFALO NY MANUFACTURING CONCERN HE SUCCEEDS JOHN G PHILLIPS 70 WHO RETIRED AS LOUISIANA LAND & EXPLORATION CHAIRMAN AND CHIEF EXECUTIVE KEEPING THE BOARD AT 11 MEMBERS 9305190135 930519 ANOTHER CLINTON JOBDESTRUCTION PLAN BY MICHAEL K EVANS PRESIDENT CLINTON AND INTERIOR SECRETARY BRUCE BABBITT WANT TO PUT THE HARDROCK MINING INDUSTRY OUT OF BUSINESS THEIR SCHEME TO PLACE A PUNITIVE 125 ROYALTY ON THE GROSS RECEIPTS OF ALL HARDROCK MINING ON PUBLIC LANDS WOULD EFFECTIVELY DESTROY MOST OF THE JOBS IN THE GOLD AND SILVER MINING INDUSTRY AND TO A LESSER EXTENT IN COPPER MINING WHILE THE BILL THEY'VE PROPOSED HAS BEEN EXEMPTED FROM THE BUDGET RECONCILIATION PROCESS IT WILL BE RECONSIDERED LATER THIS YEAR OF COURSE THAT'S NOT THE WAY THEY TELL IT AS EXPLAINED BY THE CLINTON ADMINISTRATION THOSE GREEDY MINING COMPANIES ARE RIPPING OFF THE PUBLIC OBTAINING PUBLIC LANDS AT THE BARGAINBASEMENT PRICE OF AS LITTLE AS 250 AN ACRE MINING GOLD AND OTHER HARDROCK MINERALS AND THEN SELLING THEM AT EXORBITANT PROFITS NO ONE ON THE CLINTON TEAM WANTS TO PUT THE HARDWORKING MINERS OUT OF THEIR JOBS OF COURSE NOT THEY JUST WANT TO BE FAIR ABOUT THE WHOLE MATTER AND STOP GIVING AWAY PUBLIC PROPERTY IF THIS REALLY IS A GIVEAWAY THEN THE HARDROCK MINING COMPANIES OPERATING IN THE US MUST BE MAKING FABULOUS PROFITS HOWEVER DON'T TELL IT TO THE STOCKHOLDERS OF THOSE COMPANIES IN 1991 THE RATE OF RETURN ON STOCKHOLDERS' EQUITY FOR THE HARDROCK MINING INDUSTRY AVERAGED 31 IN 1992 THE RATE OF RETURN WAS AN EVEN MORE ANEMIC 08 BY COMPARISON THE RATE OF RETURN FOR THE MANUFACTURING SECTOR WAS 63 IN 1991 AND 79 IN 1992 THE LOW RATE OF RETURN CORRESPONDS TO AN OPERATING RATIO FOR THE HARDROCK MINING INDUSTRY BEFORE CAPITAL COSTS OR TAXES OF ONLY 14 EVEN CLINTON ECONOMISTS CAN FIGURE OUT THAT IF THAT RATIO IS REDUCED BY A 125 ROYALTY THAT LEAVES ONLY A 15 OPERATING MARGIN ON EXISTING MINES THUS PROVIDING A CLEAR DISINCENTIVE TO EXPLORING NEW MINERAL DEPOSITS EVEN SO THE GIVEAWAY IMAGE PERSISTS AS SEN DALE BUMPERS D ARIZ CHIEF PROPONENT OF THE BILL IN THE SENATE ARGUES PRIVATE OWNERS COLLECT ROYALTIES STATE GOVERNMENTS COLLECT ROYALTIES SO WHY NOT THE FEDERAL GOVERNMENT THE KEY DIFFERENCE IS THAT VIRTUALLY ALL OF THE EXISTING ROYALTY AGREEMENTS APPLY EITHER TO KNOWN MINERAL DEPOSITS OR TO NET RECEIPTS OF THE MINING FIRMS AFTER EXPENSES ARE PAID THE PROPOSED CLINTON ROYALTY ON GROSS RECEIPTS WOULD TAX MINING FIRMS WHETHER OR NOT THEY WERE PROFITABLE AND WOULD ASSESS HOLDING FEES ON LAND THAT HAD NOT EVEN BEEN EXPLORED ADMITTEDLY THERE HAVE BEEN A FEW ABUSES OF THE EXISTING LAW FOR EXAMPLE CARVING UP LAND INTO CONDOMINIUM LOTS BUT THEY HARDLY RATIONALIZE TAXES ON BONA FIDE MINING OPERATIONS TO THE POINT WHERE THEY ARE NO LONGER PROFITABLE CURRENTLY THE GOLDMINING INDUSTRY EMPLOYS ABOUT 15000 PEOPLE AS RECENTLY AS 1979 IT EMPLOYED ONLY 3000 THE TEMPORARILY HIGH PRICE OF GOLD IN THE EARLY 1980S ENABLED THE GOLDMINING INDUSTRY TO INVEST HEAVILY IN NEW TECHNOLOGY AND EQUIPMENT EXPANDING PRODUCTION ENOUGH THAT EMPLOYMENT SURGED BUT THOSE GAINS WILL CLEARLY EVAPORATE IF RECENT LEVELS OF INVESTMENT DO NOT CONTINUE THE IMPOSITION OF A 125 ROYALTY ON GROSS RECEIPTS COUPLED WITH THE BTU ENERGY TAX HOLDING FEES AND SURETY BONDS PROBABLY WOULD NOT RESULT IN THE SHUTDOWN OF EXISTING MINES WHERE THE INVESTMENT HAS ALREADY BEEN MADE HOWEVER IN RECENT YEARS THE AVERAGE MINE HAS A PRODUCTIVE LIFE OF ABOUT 10 YEARS THE STEADY INCREASE IN EMPLOYMENT HAS COME FROM EXPANDING EXISTING MINES AND MORE IMPORTANT OPENING NEW ONES HOWEVER UNDER THE CLINTON PLAN VERY FEW IF ANY NEW MINES WOULD BE DEVELOPED OVER THE NEXT 10 YEARS BY 2004 THE HARDROCK MINING INDUSTRY IN THE US PARTICULARLY THE GOLD INDUSTRY WOULD VIRTUALLY CEASE TO EXIST THAT'S WHY OVER THE NEXT 10 YEARS MOST OF THE 15000 JOBS IN THE GOLD MINING INDUSTRY WOULD DISAPPEAR ALSO AT LEAST AS MANY OTHER JOBS DEPENDENT ON THE MINING INDUSTRY TRADE AND SERVICE ORGANIZATIONS IN MINING TOWNS AND SUPPLIERS OF CHEMICALS AND MACHINERY TO THE MINING INDUSTRY WOULD VANISH THUS ALMOST 30000 JOBS WOULD BE LOST IN A VAIN ATTEMPT TO ENSURE THAT THE MINING INDUSTRY IS NOT TAKING ADVANTAGE OF THE PUBLIC THE CLINTON ADMINISTRATION HAS ESTIMATED THAT ITS ROYALTYCHARGING BILL WOULD RAISE 477 MILLION A YEAR ALTHOUGH EVEN THE CONGRESSIONAL BUDGET OFFICE HAS DISPUTED THESE FIGURES AND CUT THE ESTIMATE IN HALF HOWEVER THE DECLINE IN REVENUES FROM REDUCED ECONOMIC ACTIVITY WOULD AMOUNT TO MORE THAN 1 BILLION A YEAR THUS JUST LIKE OTHER ATTEMPTS TO IMPROVE ECONOMIC PERFORMANCE AND EQUITY BY RAISING TAXES THE 125 ROYALTY ON HARDROCK MINING WOULD HAVE PRECISELY THE OPPOSITE EFFECT IT WOULD COST THE ECONOMY 30000 JOBS AND THE FEDERAL GOVERNMENT 750 MILLION A YEAR THERE ARE FEW SURER WAYS TO DESTROY AN ECONOMIC RECOVERY MR EVANS IS PRESIDENT OF EVANS ECONOMICS A CONSULTING FIRM IN WASHINGTON 9305190134 930519 BANISTER GETS CONTRACT TORONTO BANISTER INC SAID IT RECEIVED A CONTRACT VALUED AT 54 MILLION CANADIAN DOLLARS US40 MILLION FOR WORK ON BUILDINGS AT THE NEW UNIVERSITY OF NORTHERN BRITISH COLUMBIA IN PRINCE GEORGE THE CONSTRUCTION COMPANY SAID WORK WILL BEGIN IMMEDIATELY FOR COMPLETION BY SEPTEMBER 1994 9305190133 930519 AUTOS GM AND UTILITY MOUNT CHARGE ON ELECTRIC CARS BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON IN A PACT THAT COULD HELP MAKE ELECTRIC CARS MORE PRACTICAL BOSTON EDISON CO AGREED TO MARKET ELECTRICVEHICLE CHARGERS MADE BY THE GM HUGHES ELECTRONICS UNIT OF GENERAL MOTORS CORP THE UTILITY SAYS IT PLANS WIDESPREAD INSTALLATION OF CHARGERS IN THE NORTHEAST AT SUCH PLACES AS MALLS AND CORPORATE PARKING LOTS ENABLING DRIVERS TO REFUEL ELECTRIC CARS AS READILY AS THEY DO GASOLINEPOWERED VEHICLES THE PARTNERSHIP ILLUSTRATES HOW TWO MAJOR INDUSTRIES ARE JOINING FORCES TO MAKE ELECTRIC CARS MORE THAN OVERGROWN GOLF CARTS AUTO MAKERS PRESSURED BY ANTIPOLLUTION LAWS TO PUT MORE ELECTRIC VEHICLES ON THE ROAD BY 1998 ARE SCRAMBLING TO DEVELOP BETTER BATTERIES CHARGERS AND OTHER TECHNOLOGIES NEEDED FOR WIDESPREAD USE OF SUCH VEHICLES MEANWHILE ELECTRIC UTILITIES EAGER TO DEVELOP A HUGE NEW MARKET FOR POWER ARE FUNDING ELECTRICVEHICLE RESEARCH AND DEVELOPING INFRASTRUCTURECHARGING STATIONS FOR EXAMPLE TO SUPPORT WIDER USE OF THE VEHICLES ELECTRIC CARS ARE STILL ALMOST AS RARE AS COMMUTER HELICOPTERS MOST ARE CONVERTED GASOLINEENGINE CARS PRODUCED BY SMALL COMPANIES IN LIMITED QUANTITIES ONE OF THE CHEAPEST A CONVERTED GEO METRO MADE BY SOLECTRIA CORP ARLINGTON MASS IS PRICED AT 19000 THAT COMPARES WITH ABOUT 7500 FOR A COMPARABLY EQUIPPED GASOLINEPOWERED MODEL BUT ELECTRICVEHICLE SALES ARE EXPECTED TO TAKE OFF BY THE LATE 1990S PROPELLED BY STATE ANTIPOLLUTION LAWS THAT REQUIRE AUTO MAKERS TO PRODUCE INCREASING NUMBERS OF ZEROEMISSION VEHICLES WHICH EFFECTIVELY MEANS ELECTRIC MODELS A BELLWETHER CALIFORNIA LAW REQUIRES THAT 2 OF NEW CARS PRODUCED FOR SALE THERE BE ZEROEMISSION VEHICLES IN 1998 RISING TO 10 IN 2003 MASSACHUSETTS AND NEW YORK HAVE ADOPTED SIMILAR RULES AND SEVERAL OTHER STATES PLAN TO FOLLOW SUIT IF CERTAIN CONTINGENCIES ARE MET ELECTRIC VEHICLES CURRENTLY HAVE LIMITED RANGES TYPICALLY NEEDING TO BE RECHARGED EVERY 100 MILES OR SO BETTER BATTERIES ARE EXPECTED TO INCREASE RANGES WITHIN A FEW YEARS EXPERIMENTAL PROTOTYPES REPORTEDLY CAN GO 300 MILES BETWEEN CHARGES MOREOVER 80 OF MILES DRIVEN IN THE US ARE ON TRIPS OF LESS THAN 60 MILES SAYS THOMAS MORRON AN ELECTRICVEHICLE EXPERT AT THE EDISON ELECTRIC INSTITUTE A UTILITY TRADE GROUP BUT MAKING THE VEHICLES ATTRACTIVE TO MOST CONSUMERS PROBABLY WILL REQUIRE CHEAPER BETTER BATTERIES SAY AUTO MAKERS I'M NOT CONCERNED ABOUT HAVING AN ELECTRIC VEHICLE AVAILABLE BY 1998 SAYS HAROLD A POLING FORD MOTOR CO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER I AM CONCERNED ABOUT THE COST OF IT AND ABOUT MAKING IT DESIRABLE TO CONSUMERS EVEN WITH IMPROVED BATTERIES ELECTRIC VEHICLES PROBABLY WON'T WIN OVER MANY CONSUMERS UNTIL SPEEDY RECHARGING IS WIDELY AVAILABLE THAT HURDLE HOWEVER MAY BE SOLVED RELATIVELY SOON IF THE BOSTON EDISONGM HUGHES AGREEMENT IS ANY INDICATION THE GM HUGHES SYSTEM CAN RECHARGE A SMALL ELECTRIC CAR WITHIN 15 MINUTES SAYS A GM HUGHES SPOKESMAN AND THE COMPANY PLANS TO ROLL OUT A MORE POWERFUL SYSTEM EARLY NEXT YEAR THAT WILL FURTHER SHORTEN RECHARGING TIMES THE GM HUGHES INDUCTIVE RECHARGERS EMPLOY PADDLESHAPED MAGNETIC COILS THAT ARE INSERTED INTO SLOTS ON THE SIDES OF ELECTRIC VEHICLES THE COILS INDUCE ELECTRIC CURRENT WITHOUT RISK OF SHOCK AND CAN BE USED TO SAFELY RECHARGE CARS IN WET WEATHER ACCORDING TO THE COMPANY THE FIRST APPLICATION MIGHT BE FOR COMPANIES WITH FLEETS OF ELECTRIC VEHICLES SAYS RICK ZIMBONE BOSTON EDISON'S DIRECTOR OF NEWBUSINESS DEVELOPMENT LATER CHARGING STATIONS MAY BE INSTALLED NEAR THEATERS RESTAURANTS GROCERY STORES AND OTHER PUBLIC PLACES SUCH STATIONS WOULD BE AUTOMATED ENABLING DRIVERS TO USE CREDIT CARDS TO PAY FOR ELECTRICITY FAST CHARGERS FOR HOME USE MAY ALSO BE SOLD BUT PRICES HAVEN'T BEEN SET WITHIN THE INDUSTRY THE COST PER MILE FOR POWERING AN ELECTRIC CAR IS CURRENTLY ESTIMATED AT ABOUT 15 CENTS A THIRD OF THE COST PER MILE OF THE GASOLINE USED IN A COMPARABLE CONVENTIONAL CAR ELECTRIC UTILITIES ARE ESPECIALLY EAGER TO PROMOTE USE OF ELECTRIC CARS FOR COMMUTING THE VEHICLES OFTEN WOULD BE RECHARGED AT HOME OVERNIGHT ENABLING THE COMPANIES TO PUT THEIR GENERATORS TO PROFITABLE USE WHEN THERE IS USUALLY LITTLE DEMAND FOR POWER ONE CONCERN IN THE UTILITY INDUSTRY IS THAT THE CONSERVATION MESSAGE HAS BEEN INGRAINED SO MUCH THAT IT'S CONSIDERED SOCIALLY UNACCEPTABLE TO USE ADDITIONAL POWER SAYS EDISON ELECTRIC INSTITUTE'S MR MORRON THE USE OF ELECTRIC CARS WOULD PROVE OTHERWISE HE ADDS LARGE GENERATING PLANTS PRODUCE ENERGY MUCH MORE EFFICIENTLY THAN INTERNALCOMBUSTION ENGINES THUS IT'S WIDELY BELIEVED THAT SUBSTITUTING ELECTRIC CARS FOR GASOLINEPOWERED VEHICLES WOULD SIGNIFICANTLY CUT AIR POLLUTION DESPITE ADDED POWERPLANT EMISSIONS BY JOINING WITH BOSTON EDISON GM HUGHES HOPES TO ESTABLISH ITS RECHARGING TECHNOLOGY AS AN INDUSTRY STANDARD BOSTON EDISON SAYS IT WILL BE THE SOLE DISTRIBUTOR FOR GM HUGHES RECHARGERS IN NINE NORTHEASTERN STATES INCLUDING MASSACHUSETTS NEW YORK NEW JERSEY AND PENNSYLVANIA A GM HUGHES SPOKESMAN SAYS THE COMPANY HAS PENDING DEALS WITH OTHER UTILITIES TO DISTRIBUTE ITS CHARGERS THE GM UNIT HOWEVER IS EXPECTED TO FACE HEATED COMPETITION EHV CORP A STARTUP COMPANY BASED IN MANHATTAN KAN RECENTLY HAS BEGUN SELLING A PLUGIN CHARGING SYSTEM THAT RESEMBLES A PARKING METER INCLUDING A COIN SLOT TO PAY FOR ELECTRICITY THE SYSTEM DEVELOPED WITH FUNDING FROM WESTERN RESOURCES INC A UTILITYHOLDING COMPANY IN TOPEKA KAN IS MUCH CHEAPER TO BUY AND POSES NO MORE RISK OF SHOCK THAN INDUCTIVE CHARGERS CLAIMS JIM HAGUE EHV'S PRESIDENT NORVICK TECHNOLOGIES INC MISSISSAUGA ONTARIO BACKED BY CHRYSLER CORP RECENTLY BEGAN SELLING A COMPUTERIZED FASTCHARGING SYSTEM DESIGNED TO PREVENT OVERCHARGING THAT COULD DAMAGE BATTERIES THE ELECTRIC POWER RESEARCH INSTITUTE A PALO ALTO CALIF CENTER FUNDED BY THE ELECTRICUTILITY INDUSTRY ALSO IS DEVELOPING A FASTCHARGING INDUCTIVE SYSTEM WITH UNIVERSITY OF WISCONSIN RESEARCHERS 9305190132 930519 WHO'S NEWS CLUCKER'S WOOD ROASTED CHICKEN INC CLUCKER'S WOOD ROASTED CHICKEN INC MIAMI JAY DARLING WAS NAMED PRESIDENT OF THIS RESTAURANT CHAIN MR DARLING 44 YEARS OLD REMAINS PRESIDENT OF THE COMPANY'S CLUCKER'S INTERNATIONAL FRANCHISE CORP UNIT IN HIS NEW POST HE SUCCEEDS DAVID SCHARPS 33 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE PARENT 9305190131 930519 WHO'S NEWS AMERICAN CYANAMID CO AMERICAN CYANAMID CO WAYNE NJ BARRY W WILSON 49 YEARS OLD WAS NAMED PRESIDENT OF THE LEDERLE DIVISION OF CYANAMID INTERNATIONAL SUCCEEDING ROLF H HENEL 55 WHO RETIRED MR WILSON JOINS AMERICAN CYANAMID A CHEMICAL AND PHARMACEUTICAL COMPANY FROM BRISTOLMYERS SQUIBB CO ANOTHER PHARMACEUTICAL CONCERN WHERE HE SERVED AS PRESIDENT OF THE EUROPEAN PHARMACEUTICAL GROUP 9305190130 930519 FOREIGN EXCHANGE MARK DROPS AGAINST MAJOR CURRENCIES ON DENMARK'S RATIFICATION OF EC PACT BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DENMARK'S RATIFICATION OF THE MAASTRICHT TREATY ON EUROPEAN COMMUNITY UNION TUESDAY CAUSED THE GERMAN MARK TO DROP AGAINST MOST MAJOR CURRENCIES INCLUDING THE DOLLAR TRADERS SAID THE DANISH YES VOTE SIGNALED RENEWED STABILITY IN EUROPE'S EXCHANGE RATE MECHANISM AND LED MARKET PARTICIPANTS TO EXIT FROM POSITIONS IN THE MARK THE LINCHPIN OF THE CURRENCY GRID AND A PERCEIVED HAVEN IN PERIODS OF TURBULENCE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16245 MARKS UP FROM 16125 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11145 YEN UP FROM 11130 YEN STERLING WAS TRADING AT 15350 DOWN MARGINALLY FROM 15360 ABOUT MIDDAY ON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11164 YEN AND AT 16236 MARKS ALTHOUGH IT GAINED VERSUS THE MARK THE DOLLAR'S RISE AGAINST OTHER MAJOR CURRENCIES WAS LESS SHARP AND THE US UNIT ACTUALLY SLIPPED AGAINST THE CANADIAN DOLLAR AND SOME OTHER CURRENCIES THE US CURRENCY HOWEVER DID SURGE AGAINST THE AUSTRALIAN DOLLAR DESPITE CENTRAL BANK INTERVENTION ON A REPORT FROM AN INVESTMENT BANK THAT THE AUSTRALIAN CURRENCY IS OVERVALUED THE FINAL RESULT OF THE DANISH BALLOT SHOWED 568 OF VOTERS FAVORED THE TREATY WITH 432 OPPOSED THE DANES HAD NARROWLY REJECTED THE PACT LAST JUNE AND THIS TIME IT WAS PRESENTED WITH SEVERAL KEY EXEMPTIONS TO MAKE IT MORE APPEALING THE DOLLAR'S GAINS FOLLOWING THE RATIFICATION WERE MORE A CONSEQUENCE OF MARK SELLING THAN DOLLAR BUYING SAID DAVID SOLIN MANAGER OF FOREIGNEXCHANGE SALES AT TORONTO DOMINION BANK A YES' IS POSITIVE FOR THE WEAKER ERM CURRENCIES WHICH TRANSLATES INTO A WEAKER MARK IT INCREASES STABILITY SO PEOPLE CAN COME OUT OF THE MARK TORONTO DOMINION BANK'S MR SOLIN ADDED THAT THE MARKET'S EMPHASIS ON THE MARK AND AWAY FROM THE DOLLAR PROBABLY EXPLAINED WHY THE DOLLAR HAD FAILED TO TAKE OFF AFTER IT BROKE THROUGH STRONG TECHNICAL RESISTANCE AROUND 16200 MARKS THE DOLLAR DID SUSTAIN ITSELF ABOVE THAT LEVEL FOR MOST OF TUESDAY BUT IT DIDN'T SURGE AS PREVIOUSLY HAD BEEN ANTICIPATED BY MANY PLAYERS DANISH APPROVAL OF THE TREATY HAD BEEN GENERALLY EXPECTED AND DIDN'T PROVOKE MARKET VOLATILITY SAID VICTOR M POLCE MANAGER OF CORPORATE FOREIGN EXCHANGE AT ABNAMRO BANK HE SAID HE EXPECTS THE DOLLAR MIGHT COME UNDER SOME DOWNWARD PRESSURE DURING THE NEXT FEW DAYS AS PARTICIPANTS WHO HAD POSITIONED THEMSELVES FOR A YES UNWIND THEIR POSITIONS THE DOLLAR HAD GAINED SOME SUPPORT IN RECENT DAYS FROM PLAYERS WHO SAW THE US CURRENCY AS A REFUGE FROM POSSIBLE ERM TURMOIL IN THE EVENT OF A DANISH NO VOTE TRADERS NOTED THE DANISH KRONE ALSO FIRMED ON THE REFERENDUM'S OUTCOME AS THE VOTE RESTORES THE KRONE TO ITS POSITION AS ONE OF THE ERM'S CORE CURRENCIES SAID STEVEN WALKER A TRADER AT UNIBANK A/S THAT STATUS HAD BEEN LOST AFTER THE INITIAL REJECTION OF THE TREATY LAST YEAR HE ADDED THE APPROVAL REMOVES THE SHADOW OF INSTABILITY FROM THE KRONE AND UNDERLINES THAT INVESTMENT IN DENMARK IS A GOOD BET MR WALKER SAID LATE TUESDAY IN NEW YORK THE KRONE TRADED AT 38335 KRONER TO THE MARK UP FROM 38425 KRONER LATE MONDAY MR WALKER SAID HE EXPECTS DANISH INTEREST RATES TO EASE AS SOON AS WEDNESDAY BUT THAT THE KRONE IS LIKELY TO HOLD MOST OF ITS RECENT GAINS AS YIELDS ON DANISH BONDS WILL CONTINUE TO BE ATTRACTIVE COMPARED WITH OTHERS IN EUROPE STERLING ALSO GAINED FROM MOVEMENT OUT OF THE MARK TRADERS SAID A REPORT FROM THE BANK OF ENGLAND THAT INDICATED UK INFLATION IS NEARING THE TOP OF ITS EXPECTED RANGE CONTRIBUTED TO THE POUND'S STRENGTH AGAINST THE MARK AS WELL SAID SIMON FISCHER A VICE PRESIDENT AT SWISS BANK CORP IN ITS QUARTERLY BULLETIN THE BANK SAID ANY FURTHER INCREASE IN THE EXCHANGE RATE WOULD LOWER THE PROBABILITY OF BREACHING THE INFLATION TARGET THE REPORT DIDN'T MAKE ANY SPECIFIC RECOMMENDATIONS ON INTERESTRATE LEVELS THOUGH TRADERS SAID THE MARKET'S FOCUS ON EVENTS IN DENMARK OVERSHADOWED SEVERAL DEVELOPMENTS THAT MIGHT OTHERWISE HAVE DRAWN MORE ATTENTION GERMANY'S BUNDESBANK FOR EXAMPLE KEPT ITS INTEREST RATE ON SECURITIES REPURCHASE AGREEMENTS OR REPOS STABLE AT 760 IN A WEEKLY AUCTION WEDNESDAY 9305190129 930519 TECHNOLOGY & ENVIRONMENT JOINT PRODUCTION VENTURES GET BOOST FROM HOUSE LEGISLATION BY JOE DAVIDSON STAFF REPORTER TO THE WALL STREET JOURNAL WASHINGTON THE HOUSE APPROVED LEGISLATION DESIGNED TO ENCOURAGE HIGHTECH JOINT PRODUCTION VENTURES BETWEEN RIVAL FIRMS BY LIMITING THEIR EXPOSURE UNDER ANTITRUST LAWS THE LEGISLATION APPROVED ON A VOICE VOTE WOULD REDUCE POTENTIAL CIVIL PENALTIES THAT COMPANIES MIGHT SUFFER FROM ANTITRUST JUDGMENTS PROVIDED THE VENTURES ARE PROPERLY DISCLOSED TO THE JUSTICE DEPARTMENT AND FEDERAL TRADE COMMISSION INSTEAD OF FACING TREBLE DAMAGES COMPANIES WOULD HAVE TO PAY AT MOST ACTUAL DAMAGES JOINT VENTURES FOR RESEARCH AND DEVELOPMENT ALREADY HAVE THIS ANTITRUST PROTECTION A COMPANION MEASURE MUST NOW BE CONSIDERED BY THE SENATE WHERE PASSAGE IS EXPECTED THE SENATE APPROVED A SIMILAR MEASURE DURING THE LAST CONGRESS PRESIDENT CLINTON EARLIER CALLED THE BILL JUST THE KIND OF FORWARDTHINKING INITIATIVE WE NEED TO DRIVE OUR ECONOMY TOWARD A DECADE OF CREATIVE CHANGE ALTHOUGH ANTITRUST LAWS ALREADY ALLOW PRODUCTION JOINT VENTURES THERE IS A WIDELY HELD MISPERCEPTION IN THE BUSINESS COMMUNITY THAT EVEN LEGITIMATE COOPERATIVE ACTIVITY IS LIKELY TO RESULT IN SUBSTANTIAL LEGAL LIABILITY SAID REP JACK BROOKS D TEXAS CHAIRMAN OF THE HOUSE JUDICIARY COMMITTEE IT IS TIME TO DISPEL THE CONFUSION AND RELEASE THE UNPARALLELED CREATIVE FORCES IN OUR ECONOMY THE RESULTING BENEFITS WILL ACCRUE TO AMERICAN BUSINESSES WORKERS AND CONSUMERS ALIKE UNDER THE LEGISLATION A JOINT VENTURE MUST HAVE ITS PRINCIPAL PRODUCTION FACILITY IN THE US TO RECEIVE THE ANTITRUST PROTECTION IN ADDITION PARTICIPANTS IN THE VENTURE WOULD HAVE TO BE FROM THE US OR FROM COUNTRIES THAT DON'T DISCRIMINATE AGAINST US FIRMS SEEKING TO PARTICIPATE IN JOINT VENTURES THE BILL ALSO WOULD GIVE COURTS MORE FLEXIBILITY IN EVALUATING WHETHER COMPANIES IN JOINT PRODUCTION VENTURES VIOLATE ANTITRUST LAWS SPECIFICALLY THE COURTS COULD JUDGE THE LEGALITY OF SUCH VENTURES BY THE RULE OF REASON MEANING THE COURTS COULD CONSIDER WHETHER COMPANIES' ACTIVITIES ARE NOT ANTICOMPETITIVE EVEN IF THE FIRMS APPEAR TO BE COLLUDING IN VIOLATION OF ANTITRUST LAWS THE BILL WOULD NOT PRECLUDE THE JUSTICE DEPARTMENT AND THE FEDERAL TRADE COMMISSION FROM APPLYING ANTITRUST LAWS AGAINST JOINT VENTURES IF FEDERAL OFFICIALS DECIDED THAT IS NECESSARY A COMMITTEE AIDE SAID 9305190128 930519 WORK & FAMILY BY SUE SHELLENBARGER COMPANIES ARE USING NEW STRATEGIES TO ADDRESS EMPLOYEES' CHILDCARE PROBLEMS EMPLOYERS ARE AVOIDING SHOWY BRICKSANDMORTAR SOLUTIONS ONLY 10 OF COMPANIES SURVEYED LAST YEAR HAD THEIR OWN CENTERS UP FROM 9 IN 1990 ACCORDING TO HEWITT ASSOCIATES A LINCOLNSHIRE ILL BENEFITS CONSULTANT THERE AREN'T THAT MANY COMPANIES OUT THERE THAT HAVE 15 MILLION TO 2 MILLION TO PUT UP THOSE BEAUTIFUL BUILDINGS SAYS MICHAEL MCNAMARA DIRECTOR OF PLANNING AND DEVELOPMENT FOR CHILDREN'S WORLD LEARNING CENTERS A DENVERBASED CHILDCARE OPERATOR MANY EMPLOYERS ARE CUSTOMIZING CHILDCARE SOLUTIONS FOR INDIVIDUAL SITES SCHERINGPLOUGH'S HEALTHCARE PRODUCTS UNIT OFFERS A CHILDCARE SUBSIDY AT ONE SITE AND AN ADVISORY COMMITTEE SEMINAR PROGRAM AND RESOURCE LIBRARY AT ANOTHER AS WELL AS A CHILDCARE CENTER AT A THIRD MANY COMPANIES ARE OPTING FOR INFANTTODDLER PROGRAMS OR BACKUP CHILD CARE FOR EMERGENCIES AND MR MCNAMARA OF CHILDREN'S WORLD SAYS GROWTH IN CHILDCARE PARTNERSHIPS IS CONTINUING WITH A DEVELOPER OR ONE EMPLOYER PROVIDING LOWCOST SPACE AND OTHERS PROMISING TO FILL SLOTS OTHERS HELP SOLVE EMPLOYEE PROBLEMS ONEONONE WHEN WORKERS AT US BANCORP'S ASTORIA ORE BRANCH ASKED FOR A CORPORATE CHILDCARE CENTER THE COMPANY SENT A CONSULTANT TO TALK TO THEM AFTER THE EMPLOYEES AGREED THAT A CENTER WASN'T FEASIBLE FOR THEIR SMALL OFFICE THE CONSULTANT CANVASSED THE TOWN FOR PROVIDERS SHE DID ALL THE LEGWORK FOR ME SAYS CHARLOTTE WEST A CUSTOMERSERVICE REPRESENTATIVE AND MOTHER OF A 3 1/2MONTHOLD SHE GAVE ME THREE PEOPLE TO INTERVIEW AND I FOUND ONE THAT'S PERFECT FOR MY SON COMPANIES CONSIDERING CORPORATE CENTERS ARE DOING BETTER FEASIBILITY STUDIES WHEN A UNIT OF KINDERCARE LEARNING CENTERS A MONTGOMERY ALA CHILDCARE CHAIN SURVEYED 4000 EMPLOYEES OF ONE CLIENT IN OHIO IT FOUND ONLY 42 WOULD USE A CORPORATE CENTER EVERYBODY'S AUNT AND GRANDMOTHER LIVE IN THE AREA AND THEY TAKE CARE OF THE KIDS A KINDERCARE MANAGER SAYS WOMEN MANAGERS ARE RESPONSIBLE FOR MUCH OF THE PREGNANCY DISCRIMINATION AT WORK RECENT RESEARCH SUGGESTS IN A STUDY OF OHIO EMPLOYMENTDISCRIMINATION CASES FILED FROM 1985 THROUGH 1990 36 OF THE PEOPLE NAMED AS THE SOURCE OF ALLEGED PREGNANCY DISCRIMINATION WERE WOMEN WE WERE SHOCKED SAYS ANN WENDT AN ASSISTANT MANAGEMENT PROFESSOR AT WRIGHT STATE UNIVERSITY DAYTON OHIO WHO CONDUCTED THE STUDY WITH WILLIAM SLONAKER ALSO AN ASSISTANT PROFESSOR THERE WE THOUGHT IF ANYBODY SHOULD BE SENSITIVE IT SHOULD BE WOMEN IN ONE CASE A WOMAN HUMANRESOURCES MANAGER OF A SMALL COMPANY TOLD AN EMPLOYEE THEY COULD NOT WAIT FOR ME TO RETURN FROM MATERNITY LEAVE SO THEY FILLED MY JOB ACCORDING TO DOCUMENTS FILED BY THE EMPLOYEE A COWORKER HOWEVER GOT HER JOB BACK AFTER MEDICAL LEAVE FOR A BACK INJURY THE COMPLAINT SAID MS WENDT SAYS SOME WOMEN MANAGERS MAY FEEL PRESSURE TO ENFORCE COMPANY POLICY WHILE OTHERS MAY FEEL THAT IF I MADE IT YOU SHOULD BE ABLE TO AS WELL SHE SAYS THE STUDY WHICH UPDATES A PREVIOUS FIVEYEAR STUDY OF CASES FILED FROM 1985 THROUGH 1989 CONFIRMS THE EARLIER STUDY'S MAIN FINDING THAT NEW MOTHERS ARE 10 TIMES MORE LIKELY TO LOSE THEIR JOBS THAN WOMEN WHO TAKE MEDICAL LEAVE FOR OTHER REASONS ANOTHER NEW FINDING HOWEVER IS THAT THE NEW FEDERAL FAMILYLEAVE LAW WHICH TAKES EFFECT AUG 5 WOULD PROTECT FEWER THAN TWOTHIRDS OF THE ALLEGED VICTIMS THOUGH 64 OF THE PREGNANCYDISCRIMINATION CLAIMANTS WORKED FOR EMPLOYERS WITH 50 OR MORE EMPLOYEES AND WOULD HAVE BEEN PROTECTED UNDER THE FAMILY AND MEDICAL LEAVE ACT THE REMAINING 36 OF THE WOMEN WORKED FOR COMPANIES TOO SMALL TO BE COVERED BUSINESS SCHOOLS SPLIT OVER MAKING FASTTRACK EXECUTIVEEDUCATION PROGRAMS MORE FAMILYFRIENDLY THE ONEMONTH TO THREEMONTH RESIDENTIAL PROGRAMS FOR EXPERIENCED MANAGERS BROADEN MIDCAREER SKILLS AND OFTEN SPEED PROMOTIONS THEY ALSO MAY REINFORCE THE GLASS CEILING IF THE PROGRAMS' 20 TO 25 FEMALE ENROLLMENT RATE IS ANY GUIDE NANCY HARTIGAN ASSOCIATE DEAN FOR EXECUTIVE EDUCATION AT NORTHWESTERN UNIVERSITY'S KELLOGG GRADUATE SCHOOL OF MANAGEMENT SAYS BASED ON SOME RESEARCH THAT WOMEN WITH CHILDCARE OR OTHER FAMILY RESPONSIBILITIES MAY BE CUT OFF BECAUSE THEY CAN'T LEAVE HOME FOR THAT LONG SO KELLOGG HOPES TO CRACK THE GLASS CEILING STARTING THIS FALL WITH A NONRESIDENTIAL COURSE THAT WILL MEET TWO FRIDAYS A MONTH THE PROGRAM STRETCHES THE USUAL MONTH OF STUDIES OVER NINE MONTHS AND 40 OF INQUIRIES SO FAR ARE COMING FROM WOMEN THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES HAS A SIMILAR NINEMONTH ONENIGHTAWEEK PROGRAM AND CARNEGIE MELLON UNIVERSITY'S CARNEGIE BOSCH INSTITUTE THIS YEAR IS SPLITTING A THREEWEEK INTERNATIONAL MANAGEMENT PROGRAM INTO THREE ONEWEEK SEGMENTS OTHER BUSINESS SCHOOLS WANT TO ATTRACT MORE WOMEN BUT ARE STICKING TO THE TRADITIONAL SETUP WE BELIEVE IN RESIDENTIAL EDUCATION AND TOTAL IMMERSION TO GET MANAGERS AWAY FROM THE DISTRACTIONS OF HOME FAMILY AND JOB SAYS JAMES HOWELL HEAD OF STANFORD UNIVERSITY'S EXECUTIVE EDUCATION PROGRAM SOME SCHOOLS BLAME EMPLOYERS FOR LOW PARTICIPATION BY WOMEN A UNIVERSITY OF MICHIGAN SPOKESWOMAN SAYS WOMEN AREN'T EVEN IN THE PIPELINE TO ATTEND THE LONGER PROGRAMS THREEFOURTHS OF MEN SURVEYED BY ADVERTISING WOMEN OF NEW YORK A PROFESSIONAL GROUP SAY WOMEN HAVE EQUAL OPPORTUNITY ON THE JOB BUT 65 OF WOMEN SURVEYED SAY THE OLDBOY NETWORK AND SEXISM STILL BLOCK THEIR PROGRESS TRAINING MANAGERS TO BE MORE FAMILYFRIENDLY TOPS THE LIST OF NEW WORKFAMILY PROGRAMS PLANNED BY EMPLOYERS SURVEYED BY ONE SMALL STEP A COALITION OF SAN FRANCISCOAREA EMPLOYERS 9305190127 930519 WHO'S NEWS WLR FOODS INC WLR FOODS INC HINTON VA WILLIAM H GROSECLOSE 62 WAS APPOINTED A DIRECTOR OF THIS CHICKEN AND TURKEY PRODUCTS PROVIDER INCREASING THE BOARD TO 10 MEMBERS HE IS A RETIRED MEMBER OF THE REGIONAL BOARD OF FIRST UNION OF VIRGINIA A SUBBOARD OF THE BANKING CONCERN FORMERLY DOMINION BANK 9305190126 930519 CANADA WAGE BOOSTS SLOWED DURING MARCH OTTAWA MAJOR CANADIAN WAGE SETTLEMENTS REACHED IN MARCH PROVIDED INCREASES AVERAGING 09 ANNUALLY THE FEDERAL LABOR DEPARTMENT SAID THE INCREASE WAS THE LOWEST RECORDED SINCE 1978 WHEN THE LABOR DEPARTMENT BEGAN COLLECTING THE WAGE DATA SETTLEMENTS IN FEBRUARY CALLED FOR AN AVERAGE ANNUAL INCREASE OF 18 AND JANUARY SETTLEMENTS PROVIDED FOR AN AVERAGE 11 INCREASE SOME AGREEMENTS REACHED IN MARCH PROVIDED FOR LITTLE INCREASES AND EVEN SOME WAGE ROLLBACKS THE FIRST YEAR OF A THREEYEAR CONTRACT COVERING 4600 CANADA SAFEWAY LTD EMPLOYEES CALLED FOR AN 118 WAGE CUT CANADA SAFEWAY IS A SUBSIDIARY OF SAFEWAY INC OF OAKLAND CALIF 9305190125 930519 WHO'S NEWS SEARS ROEBUCK & CO SEARS ROEBUCK & CO CHICAGO SALYID NAGVI WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS COMPANY'S SEARS MORTGAGE CORP MR NAGVI 43 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT OF ASSET ALLOCATION FOR THE UNIT THE POSITION WAS NEWLY CREATED TO MANAGE THE CONTINUED GROWTH AND EVOLUTION OF SEARS MORTGAGE WHICH SEARS RECENTLY AGREED TO SELL TO PNC BANK CORP OF PITTSBURGH 9305190124 930519 US PLANS TO RAISE 500 MILLION AT SALE OF SHORTTERM BILLS WASHINGTON THE TREASURY PLANS TO RAISE 500 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 24 BILLION IN SHORTTERM BILLS TO REDEEM 2351 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING AUG 26 1993 AND NOV 26 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794E26 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794G65 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9305190123 930519 YIELDS ON SMALL CDS UNCHANGED IN WEEK INCHED UP ON JUMBOS NEW YORK YIELDS ON SMALLDENOMINATION CERTIFICATES OF DEPOSIT AT MAJOR BANKS WERE UNCHANGED IN THE WEEK ENDED YESTERDAY BUT YIELDS ON CDS SOLD THROUGH BROKERAGE FIRMS AND ON LARGEDENOMINATION JUMBO CDS INCHED HIGHER THE AVERAGE YIELDS ON SIXMONTH SAVINGS CDS REMAINED AT 265 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS STAYED AT 478 THE WILMINGTON DEL INFORMATION SERVICE SAID BUT THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS ROSE TO 310 FROM 308 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 515 FROM 5 THE SURVEY SAID ON JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE ROSE TO 271 FROM 267 ON FIVEYEAR JUMBOS THE AVERAGE ADVANCED TO 492 FROM 485 ACCORDING TO BANXQUOTE 9305190122 930519 LETTERS TO THE EDITOR WAITING AND DYING I READ WITH INTEREST THE APRIL 1 PAGEONE ARTICLE REGARDING LIVER TRANSPLANTATION WHILE I SYMPATHIZE WITH THE DEATH OF DR GORAN KLINTMALM'S PATIENT EVERY DAY IN THE US AT LEAST SEVEN PEOPLE DIE WAITING FOR AN ORGAN TRANSPLANT IN 1991 ALONE 2526 INDIVIDUALS DIED ON THE WAITING LIST FOR ORGAN TRANSPLANTATION ALL TRANSPLANT SURGEONS HAVE BEEN FORCED TO LIBERALIZE THEIR CRITERIA FOR ACCEPTANCE OF POTENTIAL DONOR ORGANS AS THE MORTALITY RATE FOR THE PATIENTS ON THEIR WAITING LIST GROWS DESPITE BEING FED BY THE AGGRESSIVE LIFEGIFT ORGAN DONATION CENTER OVER THE PAST TWO YEARS WE HAVE HAD THREE CHILDREN AND SIX ADULTS DIE AWAITING TRANSPLANTATION THIS SAME AGGRESSIVE PROCUREMENT GROUP FED DR KLINTMALM'S PROGRAM IN DALLAS UNTIL THE HOUSTON PROGRAM WAS ESTABLISHED AND IT CONTINUES TO SEND ALMOST ALL LIVERS THAT CANNOT BE USED IN HOUSTON TO DR KLINTMALM'S PATIENTS IN VIEW OF THE EVERINCREASING LENGTH OF OUR WAITING LIST FOR LIVER TRANSPLANTS WE TOO HAVE ADOPTED AN AGGRESSIVE POLICY OF CLOSELY EVALUATING ALL POTENTIAL DONOR LIVERS THIS HAS RESULTED IN OUR PROCURING A NUMBER OF LIVERS THAT EITHER IN THE OPERATING ROOM OR AFTER WE HAVE RETURNED TO HOUSTON HAVE BEEN FOUND TO BE UNSUITABLE BASED ON A BIOPSY OF THE DONOR LIVER THE VAST MAJORITY OF LIVER TRANSPLANT CENTERS PERFORM FROZEN SECTION BIOPSIES AND THE CRITERIA FOR AN UNSUITABLE LIVER ARE WELL ESTABLISHED IN THE LIVER TRANSPLANT LITERATURE IN ACCORDANCE WITH THE UNITED NETWORK FOR ORGAN SHARING UNOS GUIDELINES ALL OF THE LIVERS THAT WERE FELT TO BE UNSUITABLE FOR TRANSPLANTATION BY OUR CENTER HAVE BEEN OFFERED NATIONWIDE THROUGH THE UNOS NETWORK TO ALL OTHER LIVER TRANSPLANT CENTERS INCLUDING THE DALLAS PROGRAM NONE OF THESE LIVERS HAVE BEEN ACCEPTED BY ANY OTHER LIVER TRANSPLANT CENTER NO MATTER HOW CRITICALLY ILL THEIR RECIPIENTS WERE AS LIVER TRANSPLANT SURGEONS AND PHYSICIANS WE MUST OFTEN TEMPER OUR ENTHUSIASM TO HELP OUR CRITICALLY ILL PATIENTS WITH THE REALIZATION THAT EACH TRANSPLANT CARRIES THE POTENTIAL FOR TWO PATIENTS TO DIE NOT ONLY MIGHT THE RECIPIENT OF THE LIVER DIE BUT ONE OF THE OTHER LESS CRITICALLY ILL PATIENTS ON THE TRANSPLANT WAITING LIST WHO COULD HAVE RECEIVED THE SAME LIVER MAY DIE BEFORE ANOTHER LIVER CAN BE LOCATED THE USE OF MARGINAL LIVERS MAY RESULT IN POOR INITIAL LIVER FUNCTION AND IF A SUBSTANTIAL NUMBER OF PATIENTS REQUIRE RETRANSPLANTATION THIS FURTHER DEPLETES THE ALREADY LIMITED DONOR POOL I WAS DISTRESSED THAT YOUR EXTENSIVE ARTICLE SPENT FAR MORE TIME DISCUSSING THE COMPETITION BETWEEN TRANSPLANT CENTERS RATHER THAN ADDRESS THE REAL ISSUE WHICH IS THAT ONLY 25 OF POTENTIAL ORGAN DONORS ACTUALLY BECOME DONORS AS LONG AS THE NUMBER OF POTENTIAL RECIPIENTS EXCEEDS THE NUMBER OF LIVER DONORS THERE WILL ALWAYS BE A SIGNIFICANT MORTALITY RATE ON THE TRANSPLANT WAITING LIST THE DIFFICULT REALITY FACED BY THOSE IN NEED OF ORGAN TRANSPLANTATION TODAY IS THAT WHILE THE TECHNOLOGY TO SAVE LIVES AND RESTORE HEALTH EXISTS INCREASING NUMBERS OF PATIENTS ARE DYING BECAUSE ORGANS IN SUFFICIENT NUMBERS ARE SIMPLY NOT AVAILABLE WHILE GROWING SUCCESS RATES COUPLED WITH ADDED PUBLIC ACCEPTANCE HAVE DOUBLED THE DEMAND FOR ORGAN TRANSPLANTATION THE NUMBER OF ORGAN DONORS RATHER THAN ENJOYING A CORRESPONDING INCREASE HAS REMAINED SUBSTANTIALLY UNCHANGED FOR FIVE YEARS THE LIFEANDDEATH QUESTION FACED BY 30000 PATIENTS AWAITING ORGAN TRANSPLANTATION BY PHYSICIANS CARING FOR THESE PATIENTS AND BY ORGAN RECOVERY ORGANIZATIONS THROUGHOUT THE NATION IS THIS WHAT CAN BE DONE TO RESOLVE THE ORGAN SHORTAGE NO REORDERING OF THE MANNER IN WHICH AN INADEQUATE SUPPLY OF ORGANS IS ALLOCATED IS GOING TO SOLVE THIS PROBLEM SOME PATIENTS WILL LIVE AND SOME WILL DIE TO THOSE WHO LIVE THE SYSTEM WILL BE SEEN AS WONDERFUL TO THE FAMILIES OF THOSE WHO DIE THE SYSTEM WILL BE SEEN AS WOEFULLY INADEQUATE AS ONE WHO STRUGGLES DAILY WITH THE SHORTAGE OF DONORS AND TRANSPLANTABLE ORGANS I TAKE STRONG ISSUE WITH THE FOLLOWING IMPLICATIONS IN THE ARTICLE THAT HOSPITALS SEEKING TO PROVIDE TRANSPLANTATION SERVICES ARE SOMEHOW DRIVEN BY UNWORTHY MOTIVES SCURRYING AFTER A SHARE OF WHAT HAS BECOME A 500 MILLION MARKET UNDOUBTEDLY MANY FACTORS INFLUENCE A HOSPITAL'S DECISION TO MAKE THE COMMITMENT REQUIRED FOR A SUCCESSFUL ORGAN TRANSPLANT PROGRAM HAVE WE GROWN SO CYNICAL AS TO BELIEVE THAT GREED IS THE ONLY MOTIVATION BEHIND MODERN HEALTH CARE THAT CHANGES TO THE NATIONAL ALLOCATION POLICY FOR LIVERS WERE MADE QUIETLY AND SUBTLY BY 12 TRANSPLANT SURGEONS ON A UNOS COMMITTEE CHANGES IN NATIONAL LIVER ALLOCATION POLICY TO WHICH YOU REFER WERE MADE BY THE UNOS BOARD OF DIRECTORS UPON THE RECOMMENDATION OF BOTH ITS LIVER SUBCOMMITTEE AND ITS ORGAN PROCUREMENT AND DISTRIBUTION COMMITTEE THOSE WHO ARE THE HARSHEST CRITICS OF THE PRESENT POLICY PARTICIPATED IN THE DELIBERATIONS OF THAT LIVER SUBCOMMITTEE AND DID NOT VOTE IN OPPOSITION TO THE CHANGES THE POLICY WAS SENT OUT BY UNOS FOR PUBLIC COMMENT BEFORE FINAL IMPLEMENTATION THE CHANGE WAS HARDLY THE WORK OF DEVIOUS TRANSPLANT SURGEONS IN SOME SECRET ROOM THAT LOCAL ORGAN BANKS ARE PRIVATE ORGANIZATIONS THAT COMPETE FOR ORGANHARVESTING FRANCHISES AMONG HOSPITALS IN A REGION SUCH AN UNFLATTERING CHARACTERIZATION OF THE FIELD OF ORGAN PROCUREMENT SEEMS QUITE UNNECESSARY ORGAN PROCUREMENT ORGANIZATIONS ARE PRIVATE NONPROFIT CORPORATIONS APPROVED BY THE SECRETARY OF HEALTH AND HUMAN SERVICES IN WASHINGTON FOR ORGAN RECOVERY IN CERTAIN DESIGNATED SERVICE AREAS WHILE COMPETITION HAS EXISTED IN RECENT YEARS BETWEEN SEVERAL SUCH AGENCIES SUCH COMPETITION IS THE EXCEPTION NOT THE RULE THAT OKLAHOMA WHICH HAS HISTORICALLY PROVIDED DONOR LIVERS FOR TRANSPLANT PROGRAMS IN TEXAS IS SOMEHOW NOT ENTITLED TO PROVIDE ITS RESIDENTS WITH LIVER TRANSPLANTATION SERVICES LOCALLY WHILE THE OKLAHOMA ORGAN SHARING NETWORK ENJOYS AN OUTSTANDING WORKING RELATIONSHIP WITH THE SEVERAL ORGAN PROCUREMENT ORGANIZATIONS AND TRANSPLANT CENTERS IN TEXAS AND HAS PROVIDED A SUBSTANTIAL NUMBER OF LIVERS TO THESE PROGRAMS IN RECENT YEARS IT IS A DISTINCT PLEASURE TO SEE SUCCESSFUL LIVER TRANSPLANTATION SERVICES PROVIDED LOCALLY MAKING LIVER TRANSPLANTATION ACCESSIBLE FOR MORE OKLAHOMANS 9305190121 930519 OTC FOCUS NASDAQ STOCKS SHOW MIXED PERFORMANCE DESPITE RISE IN TECHNOLOGY HMO ISSUES BY CAITLIN MOLLISON STAFF REPORTER TO THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS WERE MIXED FOR THE THIRD CONSECUTIVE SESSION DESPITE HIGHER INTEREST RATES AND STRENGTH IN SOME KEY EQUITY MARKET SECTORS THE NASDAQ COMPOSITE INDEX GAINED 282 POINTS OR 042 TO END AT 68078 SLIGHTLY OFF ITS SESSION HIGH BUT DECLINING ISSUES OUTNUMBERED GAINERS 1424 TO 1291 NATIONAL MARKET VOLUME ROSE TO 2289 MILLION SHARES FROM 2099 MILLION ON MONDAY TRADERS NOTED A GOOD SHOWING BY SOME TECHNOLOGY AND HEALTH MAINTENANCE ORGANIZATION ISSUES SPECULATION THAT THE FEDERAL RESERVE'S FEDERAL OPEN MARKET COMMITTEE MIGHT LEAN TOWARD TIGHTENING CREDIT TO CONTAIN INFLATION HELPED SEND BOND YIELDS HIGHER JOHN AVIGNONE HEAD OF OTC TRADING AT CONNING & CO SAID THE INSURANCE SECTOR WAS GROPING FOR A BOTTOM AS BOND PRICES FELL IN THE INSURANCE GROUP PROTECTIVE LIFE LOST 1 1/2 TO 32 KANSAS CITY LIFE SLID 2 1/2 TO 51 1/2 AND SAFECO CORP EDGED DOWN 1/4 TO 55 5/8 TRADERS SAID INVESTORS APPARENTLY PAID LITTLE HEED TO COMMERCE DEPARTMENT DATA SHOWING THAT APRIL HOUSING STARTS ROSE 67 TO A SEASONALLY ADJUSTED RATE OF 12 MILLION UNITS THE LARGEST INCREASE SINCE AUGUST THE REPORT ALSO SHOWED THAT BUILDING PERMITS ROSE 58 IN APRIL THE STRONGEST RISE SINCE DECEMBER 1991 CONNING'S MR AVIGNONE SAID THAT BEFORE THERE'S ANY KIND OF A NASDAQ SHARP RALLY WE'VE GOT TO REBUILD HOWEVER HE DIDN'T DISCOUNT CONTINUING UNCERTAINTY OVER PRESIDENT CLINTON'S ECONOMIC INITIATIVES AND HEALTHCARE OVERHAUL KEN BELTER ASSISTANT MANAGER OF OTC TRADING AT RAUSCHER PIERCE REFSNES INC SAID THE OTC MARKET IS HANGING IN THERE PENDING MORE CONCRETE NEWS OR MORE OF A DEFINING OF THE POLICIES OF THE ADMINISTRATION INTEL ROSE 2 1/4 TO 101 1/4 TAIWAN'S TWINHEAD INC SAID IT DIDN'T INFRINGE ON INTEL'S 338 CRAWFORD PATENT BY USING CENTRAL PROCESSING UNITS FROM INTEL COMPETITORS IN ITS SLIMNOTE PORTABLE COMPUTERS INTEL HAS CHARGED THAT TWINHEAD VIOLATED PATENT RIGHTS BY IMPORTING ITS PERSONAL COMPUTER SYSTEMS INTO THE US MICROSOFT GAINED 2 TO 88 1/2 THE SOFTWARE MAKER SAID IT HAS BEGUN PRODUCTION OF ITS FOXPRO MIGRATION KIT VERSION 20 ALSO HEWLETTPACKARD CO SAID IT SIGNED AN AGREEMENT TO PROVIDE WORLDWIDE SUPPORT SERVICES FOR MICROSOFT'S WINDOWS NT ADOBE SYSTEMS CLIMBED 1 1/2 TO 64 3/4 ANALYST BEN ROSE OF HANCOCK INSTITUTIONAL EQUITY SERVICES LIFTED HIS RATING TO BUY FROM HOLD AMONG NEW ISSUES MEGATEST CORP CLOSED AT 12 1/2 IN ACTIVE TRADING LATE MONDAY AN INITIAL OFFERING OF 26 MILLION OF THE COMPANY'S COMMON SHARES WAS PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO THE SAN JOSE CALIF MAKER OF TESTING EQUIPMENT FOR THE INTEGRATED CIRCUIT INDUSTRY EXPECTS TO USE PROCEEDS FOR GENERAL PURPOSES WORKING CAPITAL AND DEBT REPAYMENT HEALTH MAINTENANCE ORGANIZATION STOCKS RALLIED FOLLOWING A WALL STREET JOURNAL ARTICLE INDICATING THAT THE CLINTON ADMINISTRATION'S HEALTH PLAN WILL SPEED THE SWITCH TO HMOS COVENTRY CORP ROSE 1 3/4 TO 30 1/4 AND FHP INTERNATIONAL ADVANCED 1 1/4 TO 25 1/4 LIPOSOME TECHNOLOGY INCREASED 1 1/4 TO 9 THE MENLO PARK CALIF COMPANY SAID PRECLINICAL FINDINGS SHOW THAT DOXIL A NEW LIPOSOMAL FORMULATION OF THE ANTICANCER AGENT DOXORUBICIN HYDROCHLORIDE DELIVERS MORE DRUG TO THE DISEASE SITE THAN STANDARD THERAPY IN TREATING KAPOSI'S SARCOMA IN AIDS PATIENTS DAHLBERG PLUNGED 4 3/8 TO 19 1/4 THE GOLDEN VALLEY MINN HEARING AID MANUFACTURER SAID THE FEDERAL TRADE COMMISSION'S ENFORCEMENT DIVISION MAY RECOMMEND THAT THE AGENCY FILE A SUIT AGAINST DAHLBERG AND ITS OFFICERS THE DIVISION HAS BEEN INVESTIGATING ADVERTISING CLAIMS FOR DAHLBERG'S CLARIFIER AUTOMATIC SIGNAL PROCESSING UNIT BAUSCH & LOMB REITERATED THAT IT PLANS TO COMPLETE ITS PROPOSED ACQUISITION OF DAHLBERG ASSUMING THAT REGULATORY ISSUES CAN BE RESOLVED IN A SATISFACTORY MANNER BAUSCH & LOMB CLOSED AT 51 3/8 DOWN 1/8 IN NEW YORK STOCK EXCHANGE TRADING HURCO CLOSED AT 5 DOWN 1 IT REPORTED A FISCAL SECONDQUARTER LOSS OF 50 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 33 CENTS A SHARE THE INDIANAPOLIS COMPANY MAKES MICROPROCESSOR CONTROLS AND MICROPROCESSORCONTROLLED MACHINE TOOLS AND SYSTEMS