LONDON PEARSON PLC CHAIRMAN TOLD SHAREHOLDERS THAT THE YEAR HAS STARTED WELL AND THAT THE COMPANY IS CONFIDENT ABOUT PROSPECTS FOR THE REST OF THE YEAR I REPORTED IN MY RECENT CHAIRMAN'S STATEMENT THAT I WAS MORE CONFIDENT NOW ABOUT OUR TRADING PROSPECTS FOR THE YEAR AS WHOLE THAN AT ANY TIME SINCE THE START OF THE UK RECESSION LORD BLAKENHAM PEARSON CHAIRMAN SAID AT THE PUBLISHING CONGLOMERATE'S ANNUAL MEETING I AM GLAD TO SAY THAT I HAVE NO REASON AT THIS STAGE TO CHANGE THAT VIEW BLAKENHAM SAID THAT PEARSON'S BUSINESS TRADITIONALLY GROWS AS THE YEAR PROGRESSES MAKING INTERIM RESULTS AN UNRELIABLE GUIDE TO THE YEAR AS A WHOLE HE ADDED HOWEVER THAT WE ARE OFF TO A GOOD START BLAKENHAM SAID THE OVERALL PERFORMANCE OF ITS BUSINESSES ARE IMPROVING COST CUTTING HELPED OPERATIONS THAT HAVE HAD NO INCREASE IN SALES WHILE THE DECLINE IN THE STERLING SINCE SEPTEMBER COMBINED WITH LOWER DOMESTIC INTEREST RATES HELPED EXPORTS AND BENEFITED THE CONVERSION OF REVENUE EARNED OVERSEAS IN 1992 PEARSON SAW PRETAX PROFIT FALL 16 TO 1508 MILLION 2296 MILLION FROM 1796 MILLION A YEAR EARLIER 9305170140 930517 ECONOMY INDUSTRY OUTPUT STAYED STAGNANT DURING MONTH APRIL RISE OF 01 FOLLOWED A FLAT PACE FOR MARCH CONFIDENCE INDEX DROPS BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY IS STILL TAKING ONLY SMALL STEPS TOWARD COMPLETE RECOVERY PRODUCTION AT THE NATION'S FACTORIES MINES AND UTILITIES GREW 01 LAST MONTH ACCORDING TO THE FEDERAL RESERVE AFTER STAYING FLAT IN MARCH THE VIRTUAL STAGNATION COMES AFTER ENCOURAGING GROWTH OF 03 IN JANUARY AND 05 IN FEBRUARY AND IN ANOTHER SIGN THAT THE ECONOMY IS LIKELY TO REMAIN SLUGGISH THE UNIVERSITY OF MICHIGAN'S CONSUMER CONFIDENCE INDEX SLIPPED 37 POINTS TO 819 IN EARLY MAY ACCORDING TO MARKET SOURCES WHO HAVE SEEN THE REPORT CONSUMER EXPECTATIONS FELL TO 719 IN MAY FROM TO 764 IN APRIL THE CONTINUING DROP IN CONSUMER CONFIDENCE SUGGESTS THAT AMERICANS WILL PROBABLY REMAIN HESITANT IN THEIR BUYING PLANS THE MAIN REASON INDUSTRIAL PRODUCTION CLIMBED SO SLOWLY IN APRIL WAS A 36 TUMBLE IN OUTPUT OF UTILITIES PRODUCTION AT MANUFACTURING PLANTS AND MINES BOTH INCREASED ANALYSTS SAID PLEASANT WEATHER IN APRIL MEANT THAT MANY AMERICANS DIDN'T USE THEIR HEATERS OR AIR CONDITIONERS WHAT WE SAW WAS THIS WEIRD BLIP IN UTILITIES BECAUSE OF WEATHER AND THAT TENDS TO MAKE THE NUMBERS LOOK VERY WEAK WHEN IN REALITY MANUFACTURING JUMPED BACK UP SAID PRISCILLA LUCE TRUMBULL SENIOR INDUSTRIAL ECONOMIST FOR THE WEFA GROUP MANUFACTURING ACTIVITY BOUNCED BACK IN APRIL RISING 04 AFTER A GAIN OF JUST 01 IN MARCH THE APRIL INCREASE HOWEVER IS STILL NOT AS ROBUST AS THE 07 AND 05 ADVANCES MADE IN THE FIRST TWO MONTHS OF THE YEAR SAMUEL KAHAN CHIEF ECONOMIST FOR FUJI SECURITIES INC WAS ENCOURAGED BY THE INCREASE THE REBOUND SHOWS THAT THE MARCH EASING IN MANUFACTURING PROBABLY WAS WEATHERRELATED AND AS THE WEATHER CONTINUES TO IMPROVE SO SHOULD THE OUTPUT HE SAID INDUSTRY OPERATED AT 814 OF CAPACITY IN APRIL THE SAME AS THE UPWARDREVISED MARCH FIGURE THE FED ALSO REVISED ITS INDUSTRIALPRODUCTION AND CAPACITYUTILIZATION FIGURES BACK TO 1986 THE REVISIONS SHOW THAT INDUSTRY HAS BEEN OPERATING A LOT CLOSER TO FULL CAPACITY THAN PREVIOUSLY THOUGHT SOME ECONOMISTS EXPRESSED CONCERN THAT MARCH AND APRIL'S HIGH LEVELS OF CAPACITY UTILIZATION COULD CAUSE PRODUCTION BOTTLENECKS AND PRICE INCREASES DUE TO GREATER DEMAND SEPARATELY THE COMMERCE DEPARTMENT SAID INVENTORIES ROSE 08 IN MARCH THAT WAS THE STRONGEST ADVANCE IN NEARLY FOUR YEARS SALES ROSE ONLY 02 AS A RESULT THE RATIO OF INVENTORY TO SALES WHICH REPRESENTS THE NUMBER OF MONTHS IT WOULD TAKE TO DEPLETE STOCKPILES AT THE CURRENT SALES PACE ROSE TO 147 FROM 146 THE MONTH BEFORE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN MARCH THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN APRIL THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR APRIL STOOD AT 1100 OF THE 1987 AVERAGE 9305170139 930517 WAXMAN UNIT'S PLAN IS DROPPED BEDFORD HEIGHTS OHIO WAXMAN INDUSTRIES INC CITING MARKET CONDITIONS SAID IT DECIDED AGAINST AN INITIAL PUBLIC OFFERING OF COMMON STOCK BY ITS BARNETT INC SUBSIDIARY BARNETT IS WAXMAN'S MAIL ORDER AND TELEMARKETING GROUP WAXMAN IS A SUPPLIER AND DISTRIBUTOR OF PLUMBING ELECTRICAL AND HARDWARE PRODUCTS TO THE HOMEREPAIR AND REMODELING MARKETS WAXMAN HAD PLANNED TO SELL 21 MILLION SHARES IN BARNETT AT 9 TO 10 EACH AFTER THE SALE WAXMAN STILL WOULD HAVE OWNED 83 OF BARNETT 9305170138 930517 DECORA SETS RUBBERMAID PACT FORT EDWARD NY DECORA INDUSTRIES INC SAID ITS MANUFACTURING UNIT AGREED IN PRINCIPLE FOR A NEW FIVEYEAR MANUFACTURING AND DISTRIBUTION AGREEMENT WITH RUBBERMAID INC DECORA SAID IT IS MAKING CONTACT BRAND SELFADHESIVE COVERING AND RELATED PRODUCTS ON AN EXCLUSIVE BASIS FOR RUBBERMAID UNDER A CONTRACT SCHEDULED TO EXPIRE IN APRIL 1995 THE NEW PACT WHICH IS EXPECTED TO BE SIGNED BY THE END OF JULY WILL BEGIN THEN THE COMPANIES DECLINED TO DISCLOSE THE VALUE OF THE AGREEMENT RUBBERMAID WOOSTER OHIO IS A MAKER AND MARKETER OF RUBBER AND PLASTIC HOUSEWARES 9305170137 930517 NEW ZEALAND JOBLESS RATE FALLS WELLINGTON NEW ZEALAND'S UNEMPLOYMENT RATE FELL TO A SEASONALLY ADJUSTED 98 IN THE QUARTER ENDED MARCH 31 FROM 101 IN THE QUARTER ENDED DEC 31 1992 THE DEPARTMENT OF STATISTICS SAID 9305170136 930517 FDIC SELECTS FIRMS TO PROVIDE ASSISTANCE IN SALE OF CROSSLAND WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP SELECTED TWO INVESTMENT FIRMS TO HELP IT SELL CROSSLAND FEDERAL SAVINGS BANK OF NEW YORK WHICH THE AGENCY TOOK OVER LAST YEAR KEEFE BRUYETTE & WOODS IN NEW YORK AND FRIEDMAN BILLINGS RAMSEY & CO WASHINGTON DC WILL ADVISE THE AGENCY ON A SALE THROUGH A PRIVATE PLACEMENT OR TO A GROUP OF INSTITUTIONAL INVESTORS EARLY THIS YEAR THE FDIC PAID GOLDMAN SACHS & CO 750000 TO ADVISE IT ON HOW TO DISPOSE OF CROSSLAND THE FIRM SUGGESTED THAT THE FDIC TAKE UP TO 2 BILLION OF CROSSLAND'S BAD ASSETS AND THEN SELL THE REST CROSSLAND CURRENTLY HAS 57 BILLION IN ASSETS 48 BILLION IN DEPOSITS COLLECTED THROUGH 35 BRANCHES IN THE NEW YORK CITY AREA AND 5482 MILLION IN CAPITAL HOWEVER RECENT MARKET INTEREST IN INVESTING IN FORMERLY TROUBLED FINANCIAL INSTITUTIONS THAT ARE RETURNING TO HEALTH PERSUADED THE FDIC TO ATTEMPT TO SELL CROSSLAND IN ONE PIECE A SUCCESSFUL SALE WOULD HELP JUSTIFY THE FDIC'S CONTROVERSIAL DECISION TO TAKE OVER CROSSLAND IN JANUARY 1992 IN THE FACE OF DISAPPOINTING OFFERS FOR PARTS OF THE FAILED BANK THE FDIC DECIDED TO RUN CROSSLAND ITSELF OFFICIALS ARGUED THAT THEY WOULD SAVE MONEY IN THE LONG RUN BY IMPROVING THE BANK'S CONDITION BEFORE SELLING IT 9305170135 930517 ASHLAND OIL PLANS REDEMPTION THE REDEMPTION DATE FOR BOTH ISSUES IS JUNE 24 1993 ASHLAND SAID THE REDEMPTION AGENT IS CITIBANK NEW YORK ASHLAND OIL IS AN ENERGY CONCERN ENGAGED IN PETROLEUM REFINING AND MARKETING RETAIL GASOLINE MARKETING AND OIL AND GAS EXPLORATION AND PRODUCTION AMONG OTHER BUSINESSES 9305170134 930517 JUST THINKING ABOUT ALL OF THEM HAS FOLKS SCRATCHING THEIR HEADS BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH JUMPING LIKE BALLISTIC MISSILES TAKING OFF 10 TIMES FASTER THAN A SPACE SHUTTLE KILLING THEMSELVES IN A FRENZY OF REPRODUCTION FLEAS THERE IS A VAST FLEA EPIDEMIC IN MANY WESTERN COUNTRIES SAYS JOHN W MAUNDER FLEA EXPERT AT THE UNIVERSITY OF CAMBRIDGE MEDICAL ENTOMOLOGY CENTER BRITAIN OTHER WEST EUROPEAN COUNTRIES AND MUCH OF THE US ALL REPORT INCREASED INFESTATIONS DR MAUNDER SAYS FLEA POPULATIONS IN GERMANY AND FRANCE COULD BE REACHING NEW HEIGHTS HE ADDS AND ITALY HAS ALWAYS HAD A LOT OF FLEAS EVEN IN TIDY SWITZERLAND THE FLEA POPULATION IS MOUNTAINOUS WE HAD AN EXPLOSIVE MULTIPLICATION LAST SUMMER SAYS THEODOR RAMP WHO HEADS ANIMAL HEALTH FOR SWITZERLAND AT CIBAGEIGY AG THERE HASN'T EXACTLY BEEN A CENSUS THE LITTLE CRITTERS COME IN 2000 VARIETIES AND AVERAGE ABOUT TWO MILLIMETERS IN LENGTH BUT IF YOU PUT ALL THE FLEAS IN THE WORLD TOGETHER DR MAUNDER WARNS THEY WOULD PROBABLY WEIGH MORE THAN THE TOTAL HUMAN POPULATION ALONG WITH OTHER ENTOMOLOGISTS HE PUTS MUCH OF THE BLAME ON ADVANCED MAN'S IGNORANCE CONCERNING THE WAYS OF FLEAS ANTIFLEA POWDERS AND COLLARS ARE JUST NOT GOING TO DO THE JOB DR MAUNDER CONTENDS PEOPLE DOSE THEIR PETS WITH POWERFUL INSECTICIDES SPENDING ENORMOUS SUMS ON THEM AND FAIL TO REDUCE THEIR FLEA PROBLEM YOU HAVE TO TREAT THE HOUSE HE SAYS WHICH CAN MEAN FUMIGATION OR SPRAYING WITH INSECTGROWTH REGULATORS MODERN HOUSING IS PARTLY TO BLAME FOR THE FLEA EPIDEMIC FLEAS LOVE WALLTOWALL CARPETING AND UPHOLSTERY AND IN WINTER THEY RELISH THE SAME HUMIDIFIERS AND DOUBLEGLASS INSULATION THAT KEEP THEIR HOSTS COMFORTABLE AND WARM WITHOUT TREATMENT EGGS LARVAE PUPAE AND FLEAS CAN BE SCATTERED THOUGHOUT A HOUSE GIVEN THE RIGHT CONDITIONS FLEAS CAN WAIT NINE MONTHS WITHOUT MOVING OR EATING THEY ARE THEN VERY HUNGRY PEOPLE DON'T LIKE TO TALK ABOUT IT BUT THERE CAN BE WELLMANAGED HOUSEHOLDS WHERE FLEAS BITE YOU AROUND THE ANKLES SAYS ROBERT GRIEVE OF PARAVAX INC A RESEARCH COMPANY WORKING ON ANTIFLEA PRODUCTS MORE PEOPLE WANT PETS THESE DAYS SAYS DENNIS C TURNER A UNIVERSITY OF ZURICH EXPERT ON HUMANANIMAL RELATIONS GROWING URBANIZATION HE ADDS MEANS THAT CATS BRING NATURE INTO THE LIVING ROOM 9305170133 930517 ITALY'S CONSOB AND SEC SIGN PACT TO COOPERATE IN SURVEILLANCE EFFORTS SPECIAL TO THE WALL STREET JOURNAL MILAN THE ITALIAN SECURITIES INDUSTRY REGULATORY AGENCY CONSOB SAID FRIDAY THAT IT AND ITS US COUNTERPART THE SECURITIES AND EXCHANGE COMMISSION HAVE SIGNED A MEMORANDUM OF UNDERSTANDING TO COOPERATE IN THEIR RESPECTIVE SURVEILLANCE ACTIVITIES THE FORMAL MEMORANDUM WHICH FOLLOWED THE SIGNING OF A LETTER OF INTENT LAST NOVEMBER CALLS FOR FACILITATING THE EXCHANGE OF INFORMATION BETWEEN THE TWO REGULATORY AGENCIES AND PROVIDING MUTUAL ASSISTANCE IN ORDER TO ASSURE THE FULL RESPECT OF SECURITIES LAWS AND REGULATIONS IN THE US AND ITALY CONSOB SAID IN A STATEMENT 9305170132 930517 WHO'S NEWS NORFOLK SOUTHERN CORP NORFOLK SOUTHERN CORP NORFOLK VA JOHN R TURBYFILL WAS ELECTED VICE CHAIRMAN OF THIS TRANSPORTATION COMPANY MR TURBYFILL 61 YEARS OLD SUCCEEDS JOSEPH R NEIKIRK 65 WHO IS RETIRING HENRY C WOLF 50 SUCCEEDS MR TURBYFILL AS EXECUTIVE VICE PRESIDENT FINANCE JAMES A HIXON 39 CURRENTLY ASSISTANT VICE PRESIDENT TAX COUNSEL SUCCEEDS MR WOLF AS VICE PRESIDENT TAXATION 9305170131 930517 NABORS INDUSTRIES SHARES HOUSTON GENE ISENBERG CHAIRMAN OF NABORS INDUSTRIES INC SOLD ONE MILLION OF HIS NABORS SHARES REDUCING HIS HOLDINGS TO 69 FROM 85 OF THE SHARES OUTSTANDING WARREN BERMAN VICE CHAIRMAN SOLD 500000 OF HIS NABORS SHARES CUTTING HIS STAKE TO 29 FROM 37 THE COMPANY SAID THE SALE OF THE SHARES WAS EXPECTED AND THE RESULT OF THE TWO OFFICERS SELLING STOCK THEY RECEIVED AFTER EXERCISING OPTIONS FOR TAX REASONS IN 1992 NABORS IS AN OILRIG DRILLING COMPANY 9305170130 930517 FINANCING BUSINESS ASHLAND OIL INC ASHLAND OIL INC ASHLAND KY SAID IT SOLD 55 MILLION SHARES OF CUMULATIVE CONVERTIBLE PREFERRED STOCK AT 50 A SHARE TO YIELD 625 THE ENERGY COMPANY SAID IT MAY SELL AN ADDITIONAL 500000 SHARES TO COVER OVERALLOTMENTS EACH SHARE IS CONVERTIBLE INTO 1546 SHARES OF ASHLAND COMMON STOCK THE PREFERRED SHARES AREN'T REDEEMABLE BEFORE MARCH 25 1997 ASHLAND SAID IT PLANS TO USE PROCEEDS FROM THE SALE TO REDUCE DEBT 9305170129 930517 WHO'S NEWS MILLICOM INC MILLICOM INC NEW YORK THE TELECOMMUNICATIONS COMPANY NAMED WILLIAM MUSTARD 40 YEARS OLD CHIEF FINANCIAL OFFICER AND JOSEPH J GONZALEZ 49 VICE PRESIDENT FINANCE AND TREASURER IN THOSE DUTIES THEY SUCCEED DAVID J FREAR 36 WHO WAS CHIEF FINANCIAL OFFICER BEFORE HE LEFT THE COMPANY MR MUSTARD HAD BEEN MILLICOM'S GROUP FINANCIAL CONTROLLER MR GONZALEZ WAS MOST RECENTLY CHIEF FINANCIAL OFFICER AND VICE PRESIDENT FINANCE AT METAGRAM AMERICA INC A MILLICOM UNIT 9305170128 930517 GOTTSCHALKS APRIL SALES FELL FRESNO CALIF GOTTSCHALKS INC SAID APRIL SALES FELL 3 TO 221 MILLION FROM 228 MILLION A YEAR EARLIER CITING CUSTOMER UNCERTAINTIES OVER TAX INCREASES AND THE CALIFORNIA ECONOMY SALES AT STORES OPEN AT LEAST A YEAR SLIPPED 75 THE DEPARTMENT STORE RETAILER SAID 9305170127 930517 FINANCING BUSINESS BATTLE MOUNTAIN GOLD CO BATTLE MOUNTAIN GOLD CO HOUSTON SAID IT SOLD TWO MILLION SHARES OF CONVERTIBLE PREFERRED STOCK WITH A LIQUIDATION PREFERENCE OF 50 A SHARE IN A PUBLIC OFFERING THE STOCK WILL PAY AN ANNUAL CUMULATIVE DIVIDEND OF 325 A SHARE AND WILL BE CONVERTIBLE AT ANY TIME AT THE HOLDER'S OPTION INTO SHARES OF BATTLE MOUNTAIN COMMON STOCK THE CONVERSION RATE IS 4762 COMMON SHARES FOR EACH PREFERRED SHARE OR A CONVERSION PRICE OF 1050 A SHARE THE PREFERRED STOCK IS REDEEMABLE AT THE COMPANY'S OPTION SOLELY FOR SHARES OF THE COMPANY'S COMMON STOCK BEGINNING MAY 15 1996 BATTLE MOUNTAIN SAID 9305170126 930517 FINANCING BUSINESS HAVERFIELD CORP HAVERFIELD CORP CLEVELAND SAID IT SOLD 125000 OF ITS COMMON SHARES AND 46 MILLION PRINCIPAL AMOUNT OF ITS 65 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 THE SAVINGS BANK HOLDING COMPANY SAID THE SALE INCLUDED 600000 PRINCIPAL AMOUNT OF DEBENTURES AND 15000 COMMON SHARES TO COVER OVERALLOTMENTS HAVERFIELD SAID RONEY & CO CLEVELAND IS THE LEAD UNDERWRITER THE COMPANY SAID NET PROCEEDS WHICH ARE EXPECTED TO BE ABOUT 58 MILLION WILL BE USED FOR GENERAL CORPORATE PURPOSES AND TO ADD TO ITS CAPITAL BASE 9305170125 930517 INTERNATIONAL COLIN ENERGY CALGARY ALBERTA INTERNATIONAL COLIN ENERGY CORP SAID IT AGREED TO ACQUIRE INTERESTS IN GASPRODUCING PROPERTIES IN NORTHEASTERN BRITISH COLUMBIA FOR 19 MILLION CANADIAN DOLLARS US149 MILLION THE COMPANY SAID THE ACQUISITION INCLUDES 40000 NET ACRES OF LAND AND NINE MILLION CUBIC FEET OF GAS PRODUCTION DAILY AN ADDITIONAL FOUR GAS WELLS ON THE PROPERTY CURRENTLY SHUT IN WILL BE BROUGHT ONSTREAM IN EARLY 1994 ADDING SIX MILLION CUBIC FEET OF DAILY GAS PRODUCTION INTERNATIONAL COLIN A CALGARY OIL AND GAS PRODUCER DIDN'T IDENTIFY THE SELLER OR THE SIZE OF THE STAKE IT ACQUIRED IN THE ADSETT AND BOUGIE CREEK AREAS 9305170124 930517 FINANCING BUSINESS IPSCO INC IPSCO INC REGINA SASKATCHEWAN SAID IT PLANS TO RAISE UP TO 128 MILLION CANADIAN DOLLARS US1005 MILLION THROUGH AN EQUITY ISSUE THE STEELMAKER SAID IT AGREED TO SELL FIVE MILLION SHARES AT C2650 EACH TO AN UNDERWRITING GROUP HEADED BY NESBITT THOMSON INC THE SHARES WILL BE RESOLD TO THE PUBLIC THE TRANSACTION SUBJECT TO REGULATORY APPROVAL SHOULD BE COMPLETED BY MIDJUNE THE COMPANY SAID IPSCO SAID IT WILL RECEIVE NET PROCEEDS OF C1226 MILLION FROM THE OFFERING WHICH WILL BE USED TO FUND ITS CAPITAL SPENDING AND FACILITIES ACQUISITION PROGRAMS AND BE ADDED TO ITS WORKING CAPITAL AT LAST REPORT THE COMPANY HAD ABOUT 169 MILLION OUTSTANDING SHARES IN TRADING ON THE TORONTO STOCK EXCHANGE FRIDAY IPSCO CLOSED AT C25875 A SHARE UP 875 CANADIAN CENTS 9305170123 930517 AMBULATORY MEDICAL CARE CINCINNATI AMBULATORY MEDICAL CARE INC SAID A SPECIAL COMMITTEE OF ITS BOARD DEEMED A MANAGEMENTLED BUYOUT OFFER FAIR TO OUTSIDE SHAREHOLDERS THE COMMITTEE'S FINDING CLEARS THE WAY FOR A DEFINITIVE MERGER AGREEMENT EXECUTIVES OF THE OPERATOR OF URGENTCARE OFFICES OFFERED 550 A SHARE OR ABOUT 24 MILLION IN DECEMBER FOR THE 40 OF THE 11 MILLION SHARES OUTSTANDING THEY DON'T CONTROL 9305170122 930517 AUSTRALIAN VEHICLE REGISTRATIONS SYDNEY AUSTRALIAN NEW MOTOR VEHICLE REGISTRATIONS TOTALED 42424 IN APRIL DOWN 15 FROM 49981 IN MARCH BUT UP 3 FROM 41172 IN APRIL 1992 ACCORDING TO DATA SUPPLIED BY CONSULTING FIRM PAXUS CORP THE PAXUS DATA AREN'T SEASONALLY ADJUSTED THE OFFICIAL SEASONALLY ADJUSTED APRIL FIGURES ON MOTOR VEHICLE REGISTRATIONS ARE SCHEDULED TO BE ANNOUNCED MAY 26 BY THE BUREAU OF STATISTICS 9305170121 930517 PIONEER MUTUAL OF OMAHA PACT BOSTON PIONEER GROUP INC SAID IT SIGNED A LETTER OF INTENT WITH MUTUAL OF OMAHA INSURANCE CO TO BUY MUTUAL OF OMAHA'S MUTUAL FUND MANAGEMENT BUSINESS FOR 235 MILLION PIONEER SAID TERMS CALL FOR IT TO PAY MUTUAL OF OMAHA ADDITIONAL CONTINGENT PAYMENTS OF UP TO 3 MILLION IN THREE YEARS FOR THE UNIT WHICH MANAGES ASSETS OF MORE THAN 12 BILLION THE PROPOSED PURCHASE IS SUBJECT TO A DEFINITIVE AGREEMENT AND TO APPROVALS BY PIONEER'S BOARD AND SHAREHOLDERS AND BY MUTUAL OF OMAHA'S BOARD PIONEER IS AN INVESTMENT MANAGEMENT CONCERN 9305170120 930517 LETTERS TO THE EDITOR MARRIAGE' TAXES THE MARCH 31 YOUR MONEY MATTERS COLUMN HOW TO SPLIT THE TAX BILL WITH YOUR SPOUSE DID A GOOD JOB OF DESCRIBING HOW TO ALLOCATE THE EXTRA MARRIAGE INCOME TAX BETWEEN TWO WAGEEARNING SPOUSES ALL WORKING COUPLES MAY WISH TO CONSIDER ONE OTHER WAY ALLOCATE THE ENTIRE MARRIAGE TAX TO THE LOWER WAGE EARNER THIS MAY BE AN UNFAIR WAY OF SETTLING THE TAX BILL BUT IT'S THE ONLY WAY TO KNOW WHETHER IT PAYS FOR THE LOWER WAGE EARNER TO WORK WITH MARGINAL TAX RATES BEING AS HIGH AS THEY ARE AND STILL GOING HIGHER COUPLES MAY REALIZE ONLY 50 CENTS ON THE DOLLAR AS A RESULT OF THE LOWER WAGE EARNER WORKING 9305170119 930517 INTERNATIONAL HUNGARY CONSUMER PRICES RISE FRANKFURT CONSUMER PRICES IN HUNGARY ROSE 08 IN APRIL FROM MARCH AND 228 FROM APRIL 1992 THE STATE NEWS AGENCY MTI REPORTED FRIDAY CITING THE CENTRAL STATISTICAL OFFICE MTIECONEWS REPORTED THAT FOOD PRICES ROSE ONLY 03 IN APRIL FROM MARCH AS A RESULT OF A 72 DROP IN PORK PRICES BUT WERE UP 297 FROM APRIL 1992 PRICES FOR CONSUMER DURABLES ROSE BY 12 IN APRIL MAINLY CAUSED BY AN INCREASE OF 2 TO 3 IN CAR PRICES FUEL PRICES INCREASED 2 TO 25 ON THURSDAY A FINANCE MINISTRY OFFICIAL SAID INFLATION FROM DECEMBER 1992 TO DECEMBER 1993 WILL LIKELY RUN AT 17 AT THE HIGHER END OF THE MINISTRY'S PROJECTION ANNUALIZED INFLATION IS EXPECTED TO BE AROUND 20 THE MINISTRY SAID THE CSO REPORTED THAT THE SUBSISTENCE INCOME OF AN AVERAGE FAMILY OF TWO ADULTS AND TWO CHILDREN UNDER THE AGE OF 15 YEARS STOOD AT 43600 FORINTS 505 AT THE END OF APRIL THE SUBSISTENCE INCOME FOR A SINGLE CITY DWELLER STOOD AT 15300 FORINTS 9305170117 930517 TECHNOLOGY & HEALTH CHATTEM PLANS SPECIAL PAYOUT OF 108 MILLION BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHATTEM INC A MAKER OF PAMPRIN AND OTHER HEALTHCARE PRODUCTS IS EXPECTED TO ANNOUNCE TODAY THAT IT IS PAYING OUT 108 MILLION IN A SPECIAL DIVIDEND TO SHAREHOLDERS TO RAISE CONFIDENCE IN THE COMPANY'S GROWTH THE COMPANY BASED IN CHATTANOOGA TENN WILL FINANCE THE 20ASHARE DIVIDEND WITH FUNDS FROM FIRST UNION CORP OF CHARLOTTE NC THE BANK IS LENDING CHATTEM 90 MILLION AND EXTENDING A 10 MILLION REVOLVING CREDIT LINE FIRST UNION'S INVESTMENT BANKING GROUP WILL INVEST 14 MILLION IN CHATTEM ACQUIRING 1867000 SHARES OR A 256 STAKE IN THE COMPANY CHATTEM SAID IT WILL USE THE BANK LOAN ABOUT 5 MILLION OF THE BANK'S EQUITY INVESTMENT AND ABOUT 13 MILLION IN OPERATING FUNDS TO PAY FOR THE DIVIDEND THE COMPANY EXPECTS TO PAY THE DIVIDEND JUNE 11 TO STOCK OF RECORD JUNE 4 TED GARDNER SENIOR VICE PRESIDENT OF FIRST UNION SAID THE BANK MADE THE INVESTMENT BECAUSE CHATTEM HAS A CONSISTENT TRACK RECORD IN A BUSINESS WITH HIGH MARGINS AND IS INCREASING SALES NOTABLY FASTER THAN OPERATING COSTS THE BANK WILL ENCOURAGE CHATTEM TO MAKE FUTURE ACQUISITIONS HE SAID THE NEW DEBT LOAD COMES AT A TIME WHEN CHATTEM IS INCREASING SALES IN ITS BRANDNAME PRODUCTS SUCH AS FLEXALL AN EXTERNAL PAIN RELIEF GEL BUT HAS FAILED TO ACQUIRE ANY NEW BRANDS IN THE PAST TWO YEARS THE COMPANY HAS GROWN IN LARGE PART BY BUYING UNDERMARKETED BRANDS WITH SALES POTENTIAL AND HEAVILY ADVERTISING THEM ANALYSTS AND SHAREHOLDERS SAY THEY'RE CONFIDENT THAT THE COMPANY WILL CONTINUE TO BOOST EARNINGS 20 IN THE FISCAL YEAR ENDING IN NOVEMBER BASED ON ITS PRODUCT LINE AND PLANNED LINE EXTENSIONS BUT THEY ADDED THEY'RE EAGER TO SEE CHATTEM MAKE AN ACQUISITION IN THE NEXT YEAR WE'RE DISAPPOINTED IN NOT MAKING ANY ACQUISITIONS RECENTLY SAID ZAN GUERRY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER THE COMPANY CONTINUES TO SEARCH FOR BRANDS AT 15 MILLION OR LESS TO BUY SUCH AS TOPICAL PAIN KILLERS OR ATHLETE'SFOOT MEDICINES HE SAID BUT CHATTEM ISN'T UNDERGOING ANY DEFINITIVE DISCUSSIONS MANAGEMENT WANTS AN ACQUISITION BUT THEY'RE NOT WILLING TO GIVE AWAY THE WHOLE HOUSE TO GET IT SAID E BRECK WHEELER AN ANALYST AT JC BRADFORD & CO IN NASHVILLE TENN A MAJOR SHAREHOLDER WHO ASKED NOT TO BE IDENTIFIED SAID THE COMPANY WOULD BE WISE TO TAKE ON DEBT TO ENABLE FURTHER ACQUISITIONS AND REMOVE CASH FROM ITS BALANCE SHEET THIS YEAR CHATTEM INTENDS TO BOOST SALES BY MAKING THREE LINE EXTENSIONS COMPARED WITH JUST ONE LAST YEAR THE COMPANY EXPECTS TO PUT BIG MARKETING PUSHES BEHIND TWO OF THOSE NEW PRODUCTS A MAXIMUMSTRENGTH FLEXALL AND A NIGHTTIME PAMPRIN A MENSTRUAL PAIN RELIEVER MR GUERRY SAID THE COMPANY SAID IT HOPES THE SPECIAL DIVIDEND WILL BOOST INTEREST IN ITS STOCK WHICH HAS LANGUISHED SINCE THE COMPANY MADE A SECOND PUBLIC OFFERING IN THE SPRING OF 1992 ON FRIDAY THE STOCK CLOSED AT 2525 OFF 75 CENTS IN OVERTHECOUNTER TRADING EARNINGS WILL BE DAMPED BY THE DEAL MR GUERRY SAID THE COMPANY EXPECTS TO POST EARNINGS OF ABOUT 77 MILLION OR 1 A SHARE IN FISCAL 1994 AFTER PAYING 6 MILLION IN INTEREST ON ITS DEBT ANALYSTS HAD PROJECTED EARNINGS OF MORE THAN 12 MILLION OR 225 TO 235 A SHARE FOR THAT YEAR CURRENTLY THE COMPANY HAS NO LONGTERM DEBT THE DEASO EXPECTED TO PUT A DENT IN EARNINGS IN THE LATTER HALF OF THE CURRENT FISCAL YEAR THE COMPANY IS ON TARGET TO MEET ANALYSTS' EXPECTATIONS OF NET INCOME OF 10 MILLION OR 195 A SHARE FOR THE YEAR EXCLUDING THE NEW DEBT MR GUERRY SAID BUT HE EXPECTS INTEREST PAYMENTS ON THE DEBT TO CUT PROFIT BY ABOUT 4 MILLION THIS YEAR 9305170116 930517 MARKETING & MEDIA LONHRO SELLING THE OBSERVER LONDON LONRHO PLC A DIVERSIFIED UK TRADING COMPANY IS TO RECEIVE 27 MILLION 415 MILLION FROM GUARDIAN & MANCHESTER EVENING NEWS PLC FOR THE SALE OF OBSERVER LTD A PAYMENT OF 135 MILLION WILL BE MADE ON COMPLETION OF THE TRANSACTION AND THE REST A YEAR LATER LONRHO SAID FRIDAY IN A NEWS RELEASE AS PART OF THE SALE AGREEMENT OBSERVER LTD WHICH PUBLISHES A SUNDAY NEWSPAPER THE OBSERVER WILL INDEMNIFY THE GUARDIAN FOR UP TO 5 MILLION FOR THE COST OF LAYOFFS INCURRED AS A RESULT OF THE SALE 9305170115 930517 WHO'S NEWS SAFETYKLEEN CHOOSES JOHNSON AS PRESIDENT CHIEF OPERATING OFFICER ELGIN ILL SAFETYKLEEN CORP SAID IT NAMED 52YEAROLD JOHN G JOHNSON JR ASSISTANT TO THE CHAIRMAN AS PRESIDENT AND CHIEF OPERATING OFFICER MR JOHNSON SUCCEEDS DONALD W BRINCKMAN 62 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR BRINCKMAN TOOK OVER THE DUTIES OF PRESIDENT AND CHIEF OPERATING OFFICER FOLLOWING THE DEATH OF JOSEPH F KNOTT IN DECEMBER 1991 MR JOHNSON WAS ALSO NAMED A DIRECTOR OF SAFETYKLEEN A RECYCLER OF AUTOMOTIVE AND INDUSTRIAL WASTE FLUIDS INCREASING BOARD MEMBERSHIP TO NINE ALSO F HENRY HABICHT II 40 FORMERLY SENIOR VICE PRESIDENT WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT STRATEGIC ENVIRONMENTAL PLANNING HYMAN BIELSKY 39 ASSISTANT GENERAL COUNSEL COMMERCIAL WAS NAMED SENIOR VICE PRESIDENT GENERAL COUNSEL SUCCEEDING BURTON E ERICSON WHO IS RETIRING LATER THIS YEAR 9305170114 930517 NEWFOUNDLAND AND SASKATCHEWAN BONDS DOWNGRADED BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA ONE OF CANADA'S TWO MAJOR BOND RATING AGENCIES LOWERED ITS CREDIT RATINGS FOR SASKATCHEWAN AND NEWFOUNDLAND THE COUNTRY'S MOST FINANCIALLY HARDPRESSED PROVINCES THE ACTION BY DOMINION BOND RATING SERVICE LTD PROMPTED SELLING OF CANADIAN BONDS AND THE CANADIAN DOLLAR FRIDAY IT ALSO HEIGHTENED FINANCIAL MARKET JITTERS IN ADVANCE OF ONTARIO'S SCHEDULED ANNOUNCEMENT WEDNESDAY OF ITS BUDGET FOR THE 199394 FISCAL YEAR ENDING MARCH 31 1994 THE CANADIAN DOLLAR CLOSED AT 7848 US CENTS FRIDAY DOWN FROM 7859 US CENTS THURSDAY THE GOVERNMENT'S 975 BELLWETHER ISSUE OF 2021 BONDS DECLINED TO 11365 FROM 11420 WHILE ITS YIELD ROSE TO 846 FROM 841 DOMINION LOWERED ITS RATING ON NEWFOUNDLAND'S LONGTERM BONDS TO ITS LOWEST INVESTMENT GRADE LEVEL BBB LOW FROM BBB BONDS RATED BELOW BBB LOW DON'T QUALIFY FOR THE ACCOUNTS OF INSTITUTIONAL INVESTORS SUCH AS PENSION FUNDS THE AGENCY ALSO DOWNGRADED SASKATCHEWAN'S LONGTERM BONDS TO BBB FROM BBB HIGH CANADIAN BOND RATING SERVICE LTD REAFFIRMED ITS RATINGS OF A FOR SASKATCHEWAN AND BBB FOR NEWFOUNDLAND DOMINION ACKNOWLEDGED THAT BOTH PROVINCES HAVE IMPOSED TOUGH SPENDING CURBS TO NARROW GOVERNMENT DEFICITS BUT IT SAID THEIR PROSPECTS OF CLOSING THE GAPS REMAIN CLOUDED BY HEAVY DEBTSERVICING COSTS AND WEAK CHANCES OF ECONOMIC GROWTH BOTH PROVINCES DISPUTED DOMINION'S ASSESSMENT NEWFOUNDLAND FINANCE MINISTER WINSTON BAKER SAID THE NEWFOUNDLAND ECONOMY IS EXPECTED TO SHOW REAL GROWTH THIS YEAR OF 12 PARTLY THROUGH A MAJOR BOOST FROM THE HIBERNIA OIL PROJECT OFF THE PROVINCE'S COAST HE SAID NEWFOUNDLAND'S RATIO OF DEBT TO GROSS DOMESTIC PRODUCT HAS REMAINED RELATIVELY STABLE AT 66 OVER THE LAST FIVE YEARS DESPITE DIFFICULT ECONOMIC CONDITIONS GDP IS THE TOTAL VALUE OF THE PROVINCE'S OUTPUT OF GOODS AND SERVICES A SASKATCHEWAN FINANCE DEPARTMENT OFFICIAL SAID THE PROVINCE'S FOURYEAR FISCAL PLAN FOR DEALING WITH ITS DEFICIT AND DEBT ARE BASED ON VERY CONSERVATIVE ASSUMPTIONS IN 10 YEARS SASKATCHEWAN'S FINANCIAL POSITION HAS GONE FROM ONE OF THE STRONGEST IN THE COUNTRY TO ONE OF THE WEAKEST ITS DEBT PER CAPITA IS C15000 THE HIGHEST OF ANY PROVINCE CANADIAN PROVINCES HAVE BORROWED HEAVILY ON INTERNATIONAL MARKETS IN RECENT YEARS TO FINANCE THEIR DEFICITS BUT SOME ARE CUTTING SPENDING AND PLANNING TO BORROW LESS BECAUSE OF CONCERN OVER THEIR MOUNTING DEBTS NEW BRUNSWICK ENACTED A LAW MAY 6 REQUIRING THE PROVINCIAL GOVERNMENT TO KEEP ITS TOTAL SPENDING IN THE NEXT THREE YEARS AT OR BELOW ITS REVENUE IT IS THE ONLY PROVINCE TO REQUIRE A BALANCED BUDGET MOST US STATES HAVE SUCH A LAW THE ALBERTA GOVERNMENT INTRODUCED LEGISLATION MAY 7 REQUIRING THAT THE PROVINCE'S BUDGET BE BALANCED WITHIN FOUR YEARS 9305170113 930517 LEISURE & ARTS BOOKSHELF A SERIAL KILLER AT LARGE IN LONDON OF 2013 BY TOM NOLAN IN HIS TRIO OF WELLWRITTEN PRIVATEEYE NOVELS SET IN NAZI GERMANY BRITISH CRIME NOVELIST PHILIP KERR PUT THE HISTORICAL PAST TO INTERESTING FICTIONAL USE HIS NEW BOOK LOOKS FORWARD TO ENGLAND IN 2013 THE RESULT A PHILOSOPHICAL INVESTIGATION FARRAR STRAUS & GIROUX 330 PAGES 20 IS ONE OF THE MORE IMAGINATIVE THRILLERS IN QUITE A WHILE THE LONDON MR KERR CONJURES UP IS A GRIM SORT OF PLACE WHERE WATER IS RATIONED AMUSEMENT ARCADES OFFER REALITY APPROXIMATION MACHINES FOR SIMULATED SEX AND SOCIETY BATTLES A RISING TIDE OF VIOLENCE THROUGH RETRIBUTION AND TECHNOLOGY CITIZENS CARRY GENETIC ID CARDS PC NOW STANDS FOR PUNITIVE COMA A DRUGINDUCED DEATHINLIFE SENTENCE METED OUT BY COSTCONSCIOUS COURTS ANOTHER SCIENTIFIC EFFORT TO CONTROL VIOLENCE IS THE LOMBROSO PROGRAM WHICH ISOLATES AND MONITORS INDIVIDUALS WHOSE BRAIN CHEMISTRY INDICATES THEY MAY BECOME SERIAL MURDERERS MR KERR'S STORY TAKES OFF WHEN ONE OF THESE LOMBROSO PEOPLE STARTS KILLING THE OTHERS WHOSE IDENTITIES HE DISCOVERS BY GAINING ACCESS TO THE PROGRAM'S COMPUTERIZED RECORDS SET TO CATCH THIS MISSIONARY OF DEATH IS POLICE DETECTIVE CHIEF INSPECTOR ISADORA JAKE JAKOWICZ A MISANTHROPE WHO COMBINES INTUITION WITH TECHNOLOGY TO CRACK THE LOGIC OF THE KILLER CODE NAMED LUDWIG WITTGENSTEIN HIS DANGEROUS MIND BLOWN BY DRUGS AND ARTIFICIALREALITY TRIPPING THE MURDERER APPARENTLY BELIEVES HE IS THE LOGICIAN REINCARNATE ACTUAL AND MOCK ACADEMIC LECTURES SOFTWARE AND HARDWARE GIMMICKS AND COLORFUL SECONDARY CHARACTERS ARE SOME OF THE COMPONENTS THAT KEEP MR KERR'S INVENTIVE PROCEDURAL MOVING SWIFTLY AS HE COMBINES TELEOLOGICAL SPECULATIONS WITH NITTYGRITTY FUTURISTIC POLICE WORK THE INTELLECTUAL CHALLENGE OF A COLIN DEXTER MYSTERY IS LESS THAT OF A PHILOSOPHICAL THEOREM AND MORE THAT OF THE CROSSWORD PUZZLES FAVORED BY MR DEXTER'S POPULAR SERIES HERO INSPECTOR MORSE THE WAY THROUGH THE WOODS CROWN 296 PAGES 20 FINDS THE ENGLISH POLICE DETECTIVE ON VACATION AND A GOOD DEAL LESS CRANKY THAN USUAL CHECKING OUT OLD COLERIDGE HAUNTS AROUND LYME REGIS HE COMES UPON A CRYPTIC POEM PRINTED IN THE TIMES AND IS SOON DRAWN INTO THE REOPENED INVESTIGATION OF THE YEAROLD DISAPPEARANCE OF A FEMALE SWEDISH STUDENT THOUGHT KILLED BUT NEVER FOUND BASED ON APPARENT CLUES IN THE POEM WHICH INSPIRES AN ONGOING DISCUSSION IN THE TIMES'S LETTERS COLUMN THE POLICE CENTER THEIR SEARCH IN A FORESTED AREA CALLED WYTHAM WOODS A BODY IS DISCOVERED BUT IT MAY NOT BE THE EXPECTED CORPSE AND AS USUAL IN A MYSTERY INSPECTED BY MORSE THE FIRST SOLUTION THAT PRESENTS ITSELF IS FAR FROM THE FINAL ONE LUCK COINCIDENCES HUNCHES AND SECOND GUESSES ARE ALL UTILIZED BY THE INSPECTOR AS HE LABORS TO FILL IN THE FINAL TRICKY BLANKS IN A PUZZLE BASED ON THE DEADLY SIN OF LUST HOPEFUL DEVELOPMENTS IN BACHELOR MORSE'S SOCIAL LIFE SUPPLEMENT THE DETECTION IN THIS LITERATE AND GRACEFULLY WRITTEN STORY DAVE ROBICHEAUX THE LOUISIANA SHERIFF'S DETECTIVE FEATURED IN THE BOOKS OF JAMES LEE BURKE WORKS A TURF THAT SEEMS A WORLD REMOVED AND A SCALE ENLARGED FROM MORSE'S OXFORD IN ROBICHEAUX'S NEW IBERIA THE FOLIAGE IS THICKER THE ODORS MORE EXOTIC THE METEOROLOGY MORE DRAMATIC THE GANGSTERS MORE FLAMBOYANT THE CRIMES UGLIER AND THE HERO'S RIGHTEOUS RAGE MORE AWESOME ALL THE ABOVE IS ABUNDANTLY IN EVIDENCE IN THE SIXTH ROBICHEAUX NOVEL IN THE ELECTRIC MIST WITH CONFEDERATE DEAD HYPERION 344 PAGES 1995 WHAT RAISES ROBICHEAUX'S IRE IN THIS OUTING IS THE GRISLY MURDER OF A COUPLE OF YOUNG WOMEN WHOSE MUTILATED AND DECOMPOSING BODIES ARE FOUND IN HIS SWAMPY TERRITORY THEIR DEATHS HE FEELS MAY HAVE SOMETHING TO DO WITH THE SUDDEN PRESENCE IN TOWN OF JULIE BABY FEET BALBONI A MOBSTER WHO PLAYED HIGHSCHOOL BASEBALL WITH ROBICHEAUX THERE ARE OTHER MATTERS BOTHERING THE POLICEMAN AS WELL THE REMAINS OF A BLACK MAN KILLED IN 1957 HAVE ALSO TURNED UP AND A MOVIE STAR ON LOCATION AN ALCOHOLIC AND TROUBLEPRONE LEADING MAN IS CAUSING ALCOHOLICS ANONYMOUS MEMBER ROBICHEAUX ALL MANNER OF GRIEF LUSH PROSE AND MOODY ATMOSPHERICS ARE MR BURKE'S STRONG SUITS THERE'S ENOUGH HEAVY WEATHER HERE INCLUDING THE EMOTIONAL SORT FOR HALF A DOZEN BOOKS PLENTY OF CHARACTERS TOO A LARGE ENSEMBLE OF NATIVES WHITE AND BLACK LOCAL AND FEDERAL LAW ENFORCEMENT FEMALE AND MALE STRAIGHT AND BENT HOLLYWOOD AND NEW ORLEANS TYPES UPTOWN AND DOWNTOWN ALL POPULATE THE COMPLICATED GOINGSON EVEN THE SUPERNATURAL SEEMS TO INTRUDE IN THE FORM OF A CONFEDERATE GENERAL AND TROOPS WHO VISIT VIETNAM VETERAN ROBICHEAUX IN VISIONS THAT MAY OR MAY NOT BE INDUCED BY HIS HAVING BEEN SLIPPED A DR PEPPER SPIKED WITH LSD THREE MORE DEATHS VARIOUS BEATINGS AND KIDNAPPINGS ENSUE BEFORE LONEWOLF ROBICHEAUX PUSHES INTO DAYLIGHT SOME MAY HAVE DOUBTS ABOUT THE WAY THESE DISPARATE EVENTS AND PERSONS ARE MADE TO FIT TOGETHER AND ABOUT THOSE SPECTRAL CIVIL WAR SOLDIERS STUMBLING IN THE MIST BUT IT IS HARD TO DENY THE POWERFUL IMPACT OF MR BURKE'S HARDBOILED POETICS 9305170112 930517 LETTERS TO THE EDITOR VOUCHERS OFFER A CHOICE OF PROBLEMS YOUR TWO EDITORIALS ON LINDA CROSS'S CAMPAIGN FOR WISCONSIN SUPERINTENDENT OF PUBLIC INSTRUCTION REFLECT THE IDEOLOGICAL POLARIZATION OF THE SCHOOL CHOICE ISSUE OVERWHELMING CHOICE APRIL 9 AND CROSSING THE ESTABLISHMENT MARCH 26 THE DEBATE IS DOMINATED BY TWO GROUPS BOTH OF WHOM LUMP ALL CHOICE PROPOSALS TOGETHER ONE OPPOSING THEM ALL THE OTHER SUPPORTING THEM ALL WHAT IS MISSING IS A MEANINGFUL DISCUSSION OF THE DETAILS OF HOW A CHOICE PLAN SHOULD WORK CONTRARY TO THE FIRST EDITORIAL'S CLAIM THAT EVERY POLITICAL FIGURE SUPPORTED THE RECENT MILWAUKEE SCHOOLS BOND ISSUE MILWAUKEE'S MAYOR PROPOSED AN ALTERNATIVE AND MUCH SMALLER PROGRAM THE CAMPAIGN AGAINST THE BOND ISSUE WAS ORGANIZED BY MEMBERS OF THE CITY COUNCIL AND COUNTY BOARD WITH HELP FROM A FEW MEMBERS OF THE BUSINESS COMMUNITY IF THERE WAS ANY ESTABLISHMENT SUPPORTING THE REFERENDUM IT WAS THE BUSINESS ESTABLISHMENT STARTING WITH THE TWO DAILY PAPERS AND ASSOCIATION OF COMMERCE MS CROSS HERSELF WAS NOT THE BEST VEHICLE FOR THE CHOICE ISSUE SHE ADVOCATED A SIMPLISTIC VERSION OF TOTAL QUALITY MANAGEMENT ONE THAT SAID IF A MAJORITY OF PARENTS AS CUSTOMERS WANTED RELIGIOUS SERVICES OR TO BAN CERTAIN BOOKS IN THE PUBLIC SCHOOLS FOR EXAMPLE THEY SHOULD HAVE IT THUS SHE SUCCEEDED IN DRIVING OFF PEOPLE WHO MIGHT HAVE SUPPORTED HER IF SHE HAD APPEARED MORE THOUGHTFUL HOWEVER THE MILWAUKEE SCHOOL BOARD AND TEACHER'S UNION SEEMED INTENT ON PROVING THE PROPOSITION THAT THE PUBLIC SCHOOLS ARE BEYOND SAVING NO SOONER HAD THE VOTERS REJECTED THE BOND ISSUE IN PART BECAUSE OF FEARS THAT DEVOTING MORE RESOURCES TO BUILDINGS WOULD MAKE IT HARDER TO SUPPORT EDUCATIONAL PROGRAMS THAN THE SUPERINTENDENT ANNOUNCED THAT PROGRAMS TEACHERS AND MAINTENANCE WOULD HAVE TO BE CUT TO BALANCE THE BUDGET AND RECENTLY THE UNION INSISTED THERE WERE TOO MANY BLACK TEACHERS IN A BLACK IMMERSION SCHOOL AND THAT 11 TEACHERS ON A COMMITTEE TO IMPROVE A HIGH SCHOOL BE REMOVED FROM THE UNION IRONICALLY BOTH THE CONSERVATIVE SUPPORTERS OF SCHOOL CHOICE ON THE RIGHT AND ITS ADAMANT OPPONENTS IN THE TEACHERS' UNIONS USE PRETTY MUCH THE SAME PROTOTYPE OF A CHOICE SYSTEM ONE IN WHICH ALL STUDENTS WOULD RECEIVE VOUCHERS THAT COULD BE USED AT ANY SCHOOLPUBLIC PRIVATE OR RELIGIOUS IT IS CLEAR WHY OPPONENTS LIKE THIS MODEL SINCE A VARIETY OF UNPLEASANT SCENARIOS CAN BE CONSTRUCTED AROUND IT INCREASED TAXES OR REDUCED FUNDING FOR PUBLIC SCHOOLS AS PARENTS OF STUDENTS WHO NOW PAY TUITION RECEIVE VOUCHERS INSTEAD VOUCHERS BEING USED TO SUBSIDIZE BRANCH DAVIDIANLIKE CULTS THE FORMATION OF FLYBYNIGHT ACADEMIES AND SO FORTH IF AS SUGGESTED BY THE SECOND EDITORIAL VOUCHERS DID NOT PAY THE FULL TUITION THEY WOULD LIKELY GO MOSTLY TO MIDDLECLASS FAMILIES WHO HAD THE RESOURCES FOR THE REMAINING TUITION IT IS LESS CLEAR WHY SUPPORTERS OF CHOICE SUCH AS THE EDITORS OF THE WALL STREET JOURNAL ARE SO ENTHUSIASTIC ABOUT THIS MODEL THE VOUCHER SYSTEM SEEMS MOST ANALOGOUS TO THE SINGLEPAYER MULTIPLEPROVIDER CANADIAN HEALTH CARE SYSTEM FOR WHICH THE EDITORS HAVE MANAGED TO HOLD THEIR ENTHUSIASM IN CHECK CONSERVATIVES IN PARTICULAR ARE FOND OF POINTING OUT THAT MASSIVE GOVERNMENT TRANSFER PROGRAMS OFTEN HAVE UNEXPECTED SIDE EFFECTS I SEE AN IMMENSE DIFFERENCE BETWEEN SOME OF THE VOUCHER PROPOSALS AND OUR PROGRAM THE POINT IS NOT THAT THESE PROPOSALS ARE NECESSARILY BAD BUT THAT WE NEED TO SPEND LESS ENERGY DEBATING CHOICE IN THE ABSTRACT AND MORE ON DESIGNING THE PROPOSALS ON ANTICIPATING AND ACTING TO SOLVE THE PROBLEMS THEY MAY BRING MR THOMPSON IS PRESIDENT OF DOWNTOWN MONTESSORI SCHOOL WHICH PARTICIPATES IN THE MILWAUKEE SCHOOL CHOICE PROGRAM YOU FOLKS CRACK ME UP MOST OF THE TIME YOU SUPPORT CANDIDATES AND REFERENDUM POSITIONS THAT ARE BACKED BY MORE MONEY THAN THEIR OPPONENTS SOMETIMES BY RATIOS AS HIGH AS 10 OR 20TOONE IN THE REFERENDA WHEN THE ELECTION TURNS OUT THE WAY YOU WANTED YOU TRUMPET THE VOTERS' GOOD SENSE IN REJECTING YOUR OPPONENTS' DANGEROUS IDEAS AND YOU STERNLY WARN ALL POLITICIANS TO HEED WHATEVER POPULAR WINDS YOU DISCERN IN THE RESULTS NOT A WORD IS HEARD ABOUT THE IMPACT OF MONEY BUT NOW LINDA CROSS YOUR CANDIDATE FOR SUPERINTENDENT OF PUBLIC INSTRUCTION IN MY STATE HAS BEEN DEFEATED DOES YOUR POSTELECTION EDITORIAL ADMIT THAT THIS WAS A REJECTION OF HER POLITICAL POSITION OR CONCEDE THAT SCHOOL CHOICE AND HER OTHER IDEAS ARE DEAD NO YOU BLAME IT ON THE FINANCING PROVIDED TO HER OPPONENT BY TEACHERS' UNIONS YOU CAN'T HAVE IT BOTH WAYS YOU CAN'T ATTRIBUTE THE OUTCOME TO VOTER GOOD SENSE WHEN YOU WIN BUT MONEY WHEN YOU LOSE I THINK MONEY CAN BE DECISIVE ESPECIALLY WHEN THE RATIOS ARE AS LOPSIDED AS IN SOME OF THE REFERENDA OBVIOUSLY A GREAT NUMBER OF OTHER PEOPLE AND ORGANIZATIONS ALSO THINK MONEY MATTERS SINCE NOBODY WOULD ASK FOR IT AND NOBODY WOULD GIVE IT OTHERWISE IN THIS CASE HOWEVER I THINK MONEY HAD LITTLE TO DO WITH THE RESULT MS CROSS'S PROBLEM WAS NOT LACK OF EXPOSURE BUT TOO MUCH EXPOSURE OF STATEMENTS THAT MANY PEOPLE PROBABLY THOUGHT MADE HER A FLAKY EXTREMIST IN ADDITION TO HER ADVOCACY OF PUBLIC SUPPORT FOR RELIGIOUS EDUCATION HER COMMENTS INCLUDED ASSERTIONS THAT A MAJORITY OF THE PARENTS OF A CLASS SHOULD GOVERN WHAT READING MATERIALS ARE ASSIGNED IN THAT CLASS AND THE ASSERTION THAT THE TEACHERS' UNION WAS PROTECTING CHILD MOLESTERS SHE WAS PERCEIVED AS SO FAR OUT THAT OUR CONSERVATIVE REPUBLICAN GOV THOMPSON WHOSE JUDGMENT YOU USUALLY ACCLAIM DECLINED TO SUPPORT HER SO IN THE FUTURE THEN I LOOK FORWARD TO GREATER CONSISTENCY IN YOUR COMMENTS ON THE REASONS FOR ELECTION RESULTS AND THE LESSONS TO BE LEARNED FROM THEM IF YOU ARE UNABLE OR UNWILLING TO MAINTAIN SUCH CONSISTENCY THEN I GUESS I CAN AT LEAST THANK YOU FOR CONTINUED COMIC RELIEF 9305170111 930517 DATA PROVIDE PROFITS PICTURE FOR MERGER OF SMITH BARNEY SHEARSON OPERATIONS BY RICHARD SILVERMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE MEGAMERGER OF SMITH BARNEY HARRIS UPHAM & CO AND SHEARSON LEHMAN BROTHERS INC'S BROKERAGE OPERATIONS ISN'T YET COMPLETED BUT A PICTURE OF THE COMBINED FIRM'S PROFITS HAS EMERGED IN DOCUMENTS FILED FRIDAY WITH THE SECURITIES AND EXCHANGE COMMISSION SMITH BARNEY PARENT PRIMERICA CORP REVEALED THE COMBINED FINANCIAL RESULTS OF THE SHEARSON UNITS IT AGREED TO ACQUIRE IN MARCH FOR 115 BILLION FROM AMERICAN EXPRESS CO THE MERGER IS EXPECTED TO BE COMPLETED BY JULY WITH THE ADDITION OF THE SHEARSON UNITS PRIMERICA WOULD HAVE POSTED CONSOLIDATED PRO FORMA EARNINGS OF 2593 MILLION OR 139 A SHARE FOR THE FIRST QUARTER THAT'S 523 MILLION OR 20 CENTS A SHARE MORE THAN PRIMERICA REPORTED ON ITS OWN SHEARSON HAD A QUARTERLY LOSS OF 5951 MILLION ACCORDING TO THE DOCUMENTS HOWEVER THAT FIGURE INCLUDES A PRETAX 535 MILLION LOSS ON THE SALE OF THE UNITS SMITH BARNEY'S NET INCOME WAS 575 MILLION ADDING SMITH BARNEY'S FIRSTQUARTER REVENUE OF 4111 MILLION TO THE SHEARSON UNITS' 7955 MILLION TOTALS 121 BILLION BUT THE PRO FORMA STATEMENT WHICH ASSUMES THE MERGER OCCURRED BY JAN 1 SHOWS THAT EVEN WITH NEARLY THE SAME NUMBER OF BROKERS THE SOONTOBE SMITH BARNEY SHEARSON INC ISN'T YET GENERATING RESULTS COMPARABLE TO MERRILL LYNCH & CO THE NATION'S LARGEST BROKERAGE FIRM SMITH BARNEY SHEARSON WILL BE THE NATION'S SECONDLARGEST BROKERAGE HOUSE WITH ABOUT 10500 BROKERS COMPARED WITH 11500 FOR MERRILL MERRILL REPORTED RECORD FIRSTQUARTER NET INCOME OF 342 MILLION OR 302 A SHARE AND MERRILL'S PROFIT WOULD HAVE BEEN EVEN HIGHER IF IT HADN'T TAKEN A ONETIME PRETAX CHARGE OF 103 MILLION OR 53 CENTS A SHARE STEMMING FROM THE COMPANY'S DECISION TO SUBLET OFFICE SPACE IT WASN'T USING AT ITS WORLD FINANCIAL CENTER HEADQUARTERS IN NEW YORK THE PRIMERICA PROFITS EXCLUDE A CHARGE OF 10 CENTS A SHARE FOR THE CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING FOR INCOME TAXES THE DOCUMENTS ALSO SHOW THAT THE SHEARSON BROKERAGE UNIT HAD FIRSTQUARTER COMMISSION REVENUE OF 4277 MILLION WELL ABOVE SMITH BARNEY'S 148 MILLION BUT LESS THAN MERRILL'S 7144 MILLION SHEARSON ALSO HAD PRINCIPAL TRADING REVENUE OF 1527 MILLION COMPARED WITH MERRILL'S 7548 MILLION AND OTHER INCOME OF 1532 MILLION COMPARED WITH MERRILL'S 2099 MILLION OTHER THAN COMMISSIONS PRIMERICA DOESN'T BREAK OUT SMITH BARNEY'S REVENUE THE SHEARSON NUMBERS DON'T TELL US A LOT THAT WE DIDN'T ALREADY SUSPECT BUT IT CONFIRMS WHAT WE THOUGHT SAID JOHN KEEFE AN INDEPENDENT ANALYST BASED IN NEW YORK MR KEEFE SAID A QUICK ANALYSIS OF THE NUMBERS INDICATES THAT SHEARSON'S FIRSTQUARTER COMPENSATION EXPENSE OF 5049 MILLION OR 69 OF NET REVENUE IS HIGH WHEN COMPARED WITH THE INDUSTRY'S BENCHMARK OF ABOUT 50 MERRILL'S FIRSTQUARTER COMPENSATION OF 126 BILLION WAS 48 OF NET REVENUE NET REVENUE IS TOTAL REVENUE MINUS INTEREST EXPENSES INCLUDED IN SHEARSON'S 6718 MILLION IN FIRSTQUARTER NONINTEREST EXPENSES WAS 1669 MILLION IN OTHER OPERATING EXPENSES OF MERRILL'S 203 BILLION IN NONINTEREST EXPENSES 1616 MILLION WAS IN OTHER EXPENSES MERRILL'S INTEREST EXPENSES OF 135 BILLION TOWERED OVER THOSE OF SHEARSON WHICH WERE 611 MILLION ACCORDING TO THE DOCUMENTS 9305170110 930517 LEISURE & ARTS TELEVISION ABUSE ABUSE EVERYWHERE BY DOROTHY RABINOWITZ SOME OF US OUT HERE HAVE BEEN WONDERING IF IT'S POSSIBLE FOR A TV MAGAZINE PROGRAM OF THE NEW BREED THAT IS TO GO THREE CONSECUTIVE WEEKS WITHOUT A SEGMENT ON RAPE OR SEXUAL HARASSMENT IMPOSSIBLE YOU SAY NOT FOR THOSE WHO BELIEVE IN A PLACE CALLED HOPE THEN THERE ARE THE REST OF US LESS BELIEVING WHO'VE BEEN WATCHING ABC'S DAY ONE NOW IT SHOULD BE SAID AT ONCE THAT DAY ONE STARTED OUT AS ONE OF THE SHARPER AND LIVELIER OF THE NEW MAGAZINE SHOWS IT HELPED FOR ONE THING TO HAVE FORREST SAWYER AS ANCHOR MR SAWYER HAS AMONG OTHER VIRTUES A MAGISTERIAL PRESENCE FOR A MERE 43YEAROLD THE FIRST SHOW HELD OUT THE PROMISE OF PACE IF NOT POLISH EVEN SOME HUMOR WITH PIECES BY JEFF GREENFIELD AND VARIETY BUT THEREAFTER IT BECAME CLEAR THAT VARIETY WAS TO SAY THE LEAST NOT GOING TO BE DAY ONE'S STRONG SUIT AT THE END OF THE FIRST PROGRAM ABOUT A MAN WHO REMORSELESSLY INFECTED WOMEN WITH THE AIDS VIRUS A PROMO BROUGHT NEWS OF COMING ATTRACTIONS RAPE AND MOLESTATION IT WAS OBVIOUS WERE GOING TO BE THE MAIN MENU FOR DAY ONE SURE ENOUGH THE NEXT WEEK'S SHOW TOOK US TO A WOMEN'S PRISON IN GEORGIA WHERE PRISONERS WERE COERCED ONE WAY AND ANOTHER INTO HAVING SEXUAL RELATIONS WITH THE MALE GUARDS ANOTHER SHOW SHORTLY AFTER TOOK US ALONG WITH REPORTER SHEILA MACVICAR TO KUWAIT WHY KUWAIT BECAUSE THERE IS TO OUR TV PRODUCERS MATTER MORE PRICELESS THAN OIL THERE BECAUSE IN SHORT THERE IS SEXUAL HARASSMENT AND INJUSTICE TO WOMEN GOING ON THERE WHY YOU MIGHT ASK GO ALL THE WAY TO KUWAIT DID WE RUN OUT OF HOMEGROWN HARASSMENT STORIES THE ANSWER IT'S CLEAR IS THAT KUWAIT PROVIDED NEW AND MORE TERRIBLE VARIATIONS ON THE ABUSEDWOMEN STORIES WHAT THIS SEGMENT DESCRIBED WAS THE MALTREATMENT AND RAPE OF WOMEN FROM THE PHILIPPINES AND OTHER LANDS WHO CAME TO WORK FOR KUWAITI FAMILES CRIMES TO WHICH THE KUWAITI AUTHORITIES APPARENTLY HAVE TURNED A BLIND EYE IT WAS A TALE OF PITIABLE SUFFERING AND INJUSTICE NO DOUBT ABOUT IT BUT SO TOO IS THE FAR MORE TERRIBLE PLIGHT OF THE CHILDREN TAKEN FROM THEIR HOMES AND SENT INTO SLAVERY AS PART OF THE MUSLIM WAR ON CHRISTIANS IN THE SUDAN IN DECEMBER 1992 CBS'S BOB ARNOT GAVE DETAILS OF THIS ATROCITY IN A REPORT TITLED THE LOST BOYS OF THE SUDAN SUCH ARDUOUS REPORTING IS CLEARLY NOT BEYOND THE CAPACITIES OF JOURNALISTS WILLING TO DO IT STORIES OF THIS KIND DON'T OF COURSE ATTRACT THE ATTENTION OF DAY ONE'S JOURNALISTS WHO HAVE AFTER ALL THEIR HANDS FULL COVERING RAPE AND HARASSMENT STORIES HERE AND AROUND THE GLOBE THAT'S NOT TO SAY THAT DAY ONE HASN'T PRODUCED SOME INTERESTING VARIATIONS ON THE SUBJECTS TAKE THE SHOW ON SERIAL KILLER JEFFREY DAHMER DAHMER RECALL HAD AT THE TIME OF HIS ARREST AMASSED A HOUSEFUL OF HUMAN REMAINS INCLUDING LIMBS MARINATING IN THE BATHTUB AND SUCH THE BETTER TO ASSUAGE AS ONE OF THE PROGRAM'S COMMENTATORS EXPLAINED HIS FEELINGS OF LONELINESS TO ACHIEVE GREATER HUMAN INTIMACY HE SOMETIMES ATE PARTS OF HIS VICTIMS MAINLY THE PROGRAM REVEALS THEIR BICEPS A DISARMING HABIT DAHMER'S STORY FIT IN NICELY WITH THE SHOW'S PREOCCUPATIONS STALKING AND KILLING THE OBJECTS OF ONE'S LUST IN ORDER TO FIND COMPANIONSHIP AND SUSTENANCE WITH THEIR CORPSES IS AFTER ALL SEXUAL MOLESTATION THOUGH IT WAS MUCH CRITICIZED FOR REWARDING SO VICIOUS A CRIMINAL WITH A CELEBRITY PROFILE DAY ONE'S PORTRAIT OF DAHMER WAS IN FACT WELLREPORTED WHAT UNDID THE SEGMENT WERE THE ACCOMPANYING PSYCHOLOGICAL COMMENTARIES AND THE VAMPIRE MOOD MUSIC THE SHOW'S PRODUCER FOR INSTANCE MANAGED TO DIG UP DAHMER'S HIGHSCHOOL PROM DATE WHO TOLD A FASCINATING IF WOEFUL TALE OF A CLUMSY YOUTH SO SHY HE COULDN'T ATTACH HIS DATE'S CORSAGE FOR FEAR OF PRICKING HER WITH THE PIN IN DUE TIME DAHMER MANAGED TO GET OVER THIS SHYNESS AND BECAME QUITE A DAB HAND AT STABBING PEOPLE DAY ONE'S STORY ON MICHAEL LA TOYA AND ALL THE REST OF THE JACKSONS WAS NATURALLY CHEERIER AS WHAT WOULD NOT BE NEEDLESS TO SAY A FAIR AMOUNT OF THIS FAMILY PORTRAIT FOCUSED ON MS JACKSON'S CHARGES THAT HER FATHER ASSAULTED HER AND HER SISTER SEXUALLY CHARGES EVERYONE ELSE IN QUESTION INCLUDING THE SISTER VIGOROUSLY DENIES ELSEWHERE ON THE RAPE WATCH WE HAD A WEEK AGO THE STORY OF A FLORIDA WOMAN ASSAULTED BY A MAN WHO HAD FOLLOWED HER AS SHE LEFT A HEALTH CLUB WHILE THE PROSECUTOR HAD MADE MANY ERRORS THE VICTIM REPORTED CORRESPONDENT MICHEL MCQUEEN HAD DONE EVERYTHING RIGHT EVERYTHING SHE WAS SUPPOSED TO DO TO ASSURE THE RAPIST'S CONVICTION IN FACT SHE HAD GOT ONE THING FATALLY WRONG IN ONE OF THE SHOW'S MOST MEMORABLE EXCHANGES REPORTER MCQUEEN CONFRONTED THE PROSECUTOR AFTER THE CASE AGAINST THE OBVIOUSLY INNOCENT MAN HAD FALLEN APART THE PROSECUTOR POINTED OUT THAT UNFORTUNATELY THE VICTIM MADE A 100POSITIVE IDENTIFICATION OF THE WRONG MAN PARDON ME MS MCQUEEN SNAPPED BUT IT SOUNDS LIKE YOU'RE BLAMING HER FOR PICKING THE WRONG PHOTOGRAPH THIS UNSUBTLE REFLEXIVE CHARGE SUGGESTING THAT THE PROSECUTOR WAS BLAMING THE VICTIM TOLD WORLDS ABOUT THE MINDSET AT WORK HERE THE ENTIRE POINT OF THIS REPORTORIAL VENTURE AFTER ALL WAS TO ACCUSE THE PROSECUTOR NOT TO PRESENT SALIENT FACTS SUCH AS THE RAPE VICTIM'S ERROR DAY ONE WHICH RETURNS IN THE FALL IN A NEW MONDAYNIGHT SLOT ISN'T ALONE IN ITS ADDICTION TO RAPE AND MOLESTATION STORIES IF IT COULD GET THIS PARTICULAR MONKEY OFF ITS BACK IT COULD CONCEIVABLY HAVE A SUBSTANTIAL FUTURE IT WON'T BE EASY PERHAPS THE NETWORK WILL CONSIDER FUNDING A 12STEP RECOVERY PROGRAM FOR THE PRODUCTION STAFF 9305170109 930517 INTERNATIONAL ITALY'S INDUSTRIAL OUTPUT FALLS ROME ITALY'S INDUSTRIAL OUTPUT FELL AN UNADJUSTED 21 IN MARCH FROM A YEAR EARLIER THE STATE STATISTICAL INSTITUTE ISTAT SAID FRIDAY ISTAT ALSO SAID INDUSTRIAL OUTPUT FELL 57 IN THE FIRST THREE MONTHS OF 1993 FROM THE YEAREARLIER PERIOD PART OF THIS DECLINE WAS DUE TO THE FACT THAT THE FIRST TWO MONTHS OF THE YEAR HAD ONE WORKING DAY LESS THAN THE JANUARYMARCH PERIOD OF 1992 ISTAT SAID THE OUTPUT DECLINE IN THE FIRST THREE MONTHS OF THE YEAR WAS PARTICULARLY STRONG IN THE TRANSPORTATION SECTOR WHERE PRODUCTION SLUMPED 20 9305170108 930517 LETTERS TO THE EDITOR A HEALTH CARE REFORM THAT'S RIPE FOR ABUSE YOUR APRIL 5 ARTICLE FLORIDA ACTS TO REVAMP MEDICAL SYSTEM THE RESULT COULD BE MODEL FOR US VERSION QUOTES DOUGLAS COOK DIRECTOR OF FLORIDA'S AGENCY FOR HEALTH CARE ADMINISTRATION AND GOV LAWTON CHILES'S SENIOR MEDICAL ADVISER IT SHOULD BE NOTED THAT MR COOK HAS NO MEDICAL TRAINING OR BACKGROUND FLORIDA IS ABOUT TO EMBARK ON A GREAT EXPERIMENT DESIGNED AND PROMULGATED BY BUREAUCRATS AND GOVERNMENT MANAGERS USING UNTESTED PHILOSOPHIES MODELS AND NUMBERS THE CONCEPT OF MANAGED COMPETITION HAS NOT BEEN TESTED EVEN IN SMALL TRIALS LET ALONE BY A LARGE GOVERNMENT BUREAUCRACY IN ATTEMPTING TO REFORM A SYSTEM THAT BADLY NEEDS RESTRUCTURING FLORIDA WILL UNDOUBTEDLY CREATE ANOTHER UNWIELDY WASTEFUL AND INEFFICIENT BUREAUCRACY THE FORMATION OF COMMUNITY HEALTH PURCHASING ALLIANCES UNDER THE DIRECT CONTROL AND WHIM OF THE GOVERNOR WILL PUT AN INCREDIBLE AMOUNT OF POWER IN A SMALL NUMBER OF HANDS CONTROLLED BY ONE OFFICIAL AND RIPE FOR ABUSE BY THE APPOINTED INDIVIDUALS SPECIAL INTERESTS AND POLITICS GOV CHILES LIKE PRESIDENT CLINTON PREFERS TO LOOK AT MEDICAL CARE PROVIDERS OR HEALTH CARE PROFESSIONALS INCLUDING PHYSICIANS NURSES AND OTHER TRAINED PERSONNEL IN AN ADVERSARIAL LIGHT IT IS HARD TO UNDERSTAND HOW PROFESSIONALS WHO TAKE CARE OF PATIENTS ACTUALLY TOUCHING OTHER HUMAN BEINGS AS PART OF THEIR DAILY LIVES CAN BE CONSIDERED A SPECIAL INTEREST IN THE HEALTH CARE DEBATE AND REFORM AGENDA 9305170107 930517 WHO'S NEWS GENCORP INC GENCORP INC FAIRLAWN OHIO WILLIAM E BACHMAN 53 YEARS OLD FORMERLY VICE PRESIDENT OPERATIONS OF THIS COMPANY'S GENCORP POLYMER PRODUCTS UNIT WAS NAMED VICE PRESIDENT OF THE CORPORATION AND PRESIDENT OF GENCORP POLYMER PRODUCTS HE SUCCEEDS JAMES S MARLEN WHO RECENTLY BECAME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AMERON INC PASADENA CALIF A SUCCESSOR TO MR BACHMAN HASN'T YET BEEN NAMED 9305170106 930517 INTERNATIONAL MAJOR PROGRESS IS SEEN IN TALKS ON TRADE TARIFFS BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO TRADE MINISTERS OF THE US AND ITS BIGGEST TRADING PARTNERS SAID THEY MADE SIGNIFICANT PROGRESS TOWARD REACHING AN AGREEMENT BY JULY TO LOWER TARIFFS AND OPEN THEIR MARKETS TO IMPORTS PRIVATELY HOWEVER US TRADE NEGOTIATORS SAID THAT REPRESENTATIVES OF THE US CANADA AND THE EUROPEAN COMMUNITY TURNED UP THE HEAT ON JAPAN IN AN EFFORT TO GET THE ASIAN NATION TO TRIM ITS 136 BILLION GLOBALTRADE SURPLUS THERE WAS A PRETTY STRONG MESSAGE TO THE JAPANESE FROM ALL THREE COUNTRIES THAT LIBERALIZATION BY JAPAN WAS ESSENTIAL A NEGOTIATOR PRESENT AT THE TORONTO MEETING SAID SUCH ASSERTIVE TONES WEREN'T REFLECTED IN PUBLIC STATEMENTS MADE BY THE TRADE MINISTERS AFTER THEIR PRIVATE MEETINGS HOWEVER YOSHIRO MORI JAPAN'S MINISTER OF INTERNATIONAL TRADE AND INDUSTRY SAID HIS COUNTRY PROPOSED NEW CONCESSIONS ON A HOST OF INDUSTRIAL PRODUCTS RELATED TO THE ELECTRONICS CONSTRUCTION RUBBER AND MEDICAL INDUSTRIES SIGNIFICANTLY HOWEVER MR MORI'S LIST OF INDUSTRIES WHERE TARIFF CONCESSIONS MIGHT BE MADE DIDN'T INCLUDE FINANCIAL SERVICES AND WOOD PRODUCTS WHICH HAVE BEEN BONES OF CONTENTION BETWEEN JAPAN ON THE ONE SIDE AND THE US AND CANADA ON THE OTHER MR MORI ALSO SAID HIS LATEST OFFER WHICH HE SAID WOULD AFFECT 770 INDUSTRIAL PRODUCTS WAS CONDITIONAL ON GREATER CONCESSIONS BEING MADE BY THE OTHER COUNTRIES AS WELL THE MINISTERS WOULDN'T DISCLOSE THE SPECIFICS OF THEIR NEGOTIATIONS MICKEY KANTOR THE US TRADE REPRESENTATIVE SAID AT A NEWS CONFERENCE FOLLOWING THE NEGOTIATING SESSIONS THAT WE'VE ALL AGREED TO STRIVE FOR AN AMBITIOUS PACKAGE OF TARIFF REDUCTIONS WE'RE WORKING AGGRESSIVELY TO OVERCOME ANY DIFFERENCES WE MIGHT HAVE IN RECENT MONTHS US TRADE NEGOTIATORS MET REGULARLY WITH THEIR EUROPEAN COUNTERPARTS TO IRON OUT DIFFERENCES WITH SOME OF THE STICKIEST OF THOSE ISSUES RESOLVED THE US CANADA AND THE EUROPEAN COMMUNITY APPEAR READY TO COMBINE FORCES TO PUSH JAPAN INTO AN AGREEMENT IN TIME FOR THE TOKYO SUMMIT MEETING OF THE GROUP OF SEVEN MAJOR INDUSTRIALIZED COUNTRIES SCHEDULED FOR JULY THE MINISTERS PLAN TWO MORE MEETINGS NEXT MONTH FOLLOWING THE JULY SUMMIT THE OFFICIALS SAID THEY INTEND TO WIDEN THE TRADE NEGOTIATIONS TO INCLUDE ALL MEMBERS OF THE INTERNATIONAL TRADE BODY KNOWN AS THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE TARGET IS TO CONCLUDE THE SOCALLED URUGUAY ROUND OF TRADE NEGOTIATIONS WHICH HAS BEEN GOING ON FOR SEVEN YEARS BY THE END OF 1993 9305170105 930517 AT&T TO CUT JOBS AT PLANT THAT WAS CITED IN AWARD NEW YORK WINNING A BALDRIGE AWARD MAY HAVE LET AMERICAN TELEPHONE & TELEGRAPH CO CROW ABOUT ITS QUALITY BUT IT DIDN'T GUARANTEE JOBS TO 1000 WORKERS WHO HELPED AT&T WIN THE PRIZE AT&T SAID IT WOULD CUT 1000 OUT OF 6000 JOBS AT ITS MERRIMACK VALLEY WORKS NORTH ANDOVER MASS DUE TO A SLOWDOWN IN ORDERS FOR COMMUNICATIONS TRANSMISSION GEAR MADE BY THE PLANT THE MERRIMACK VALLEY WORKS IS AT&T'S LARGEST PLANT AND THE KEY FACILITY CITED LAST YEAR BY US COMMERCE DEPARTMENT JUDGES WHEN THEY BESTOWED A MALCOLM BALDRIGE NATIONAL QUALITY AWARD ON AT&T TRANSMISSION SYSTEMS AT&T'S UNIVERSAL CREDIT CARD UNIT ALSO WON THE PRIZE WHICH RECOGNIZES MANAGEMENT EFFORTS TO IMPROVE PRODUCT AND SERVICE QUALITY AT&T SAID ORDERS SLOWED AS THE COMPANY COMPLETED THE MODERNIZATION OF ITS LONGDISTANCE PHONE NETWORK A BIG CUSTOMER FOR THE COMPUTERIZED SYSTEMS USED TO DIRECT DATA TRAFFIC FLOW JACK MCKINNON MANUFACTURING CHIEF AT THE FACILITY SAID ORDERS FOR THE GEAR FROM PHONE COMPANIES IN THE US AND OVERSEAS ARE RUNNING 8 AHEAD OF LAST YEAR BUT HE ADDED THESE ORDERS WEREN'T ENOUGH TO OFFSET THE DROP IN INTERNAL SALES 9305170104 930517 ACQUISITION RESTRICTIONS ON KKR ASSOCIATES EASED WASHINGTON THE FEDERAL TRADE COMMISSION RELAXED AN ORDER THAT PROHIBITED KKR ASSOCIATES FROM ACQUIRING COMPANIES INVOLVED IN THE PRODUCTION OF CERTAIN FOOD PRODUCTS THE COMMISSION MODIFIED THE 1989 CONSENT ORDER SO THAT KKR ONLY MUST NOTIFY THE FTC IF THE NEW YORK CITYBASED COMPANY INTENDS TO SECURE THE ASSETS OF ANOTHER FIRM THAT PRODUCES OR SELLS KETCHUP SHELFSTABLE ORIENTAL FOODS AND PACKAGED NUTS THE ORDER HAD REQUIRED KKR TO OBTAIN FTC APPROVAL OF SUCH DEALS FOR 10 YEARS THE CONSENT ORDER SETTLED CHARGES THAT KKR'S ACQUISITION OF RJR NABISCO INC WOULD SERIOUSLY LESSEN COMPETITION AMONG THOSE PRODUCTS AT THE TIME KKR CONTROLLED BEATRICE/HUNTWESSON WHICH ALSO PRODUCED THOSE PRODUCTS THE ORDER REQUIRED KKR TO DIVEST THE ASSETS OF EITHER BEATRICE/HUNTWESSON OR RJR NABISCO THAT ARE USED IN THE PRODUCTION OF THE FOODS KKR ASSOCIATES IS A UNIT OF PRIVATE INVESTOR KOHLBERG KRAVIS ROBERTS & CO 9305170103 930517 INFORMATION AGE IN VIRTUAL OFFICE' HIGHSPEED LINES RULE BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL JONATHAN RECHT IS AMBLING DOWN MANHATTAN'S WEST 21ST ST THROUGH THE SULFUROUS FUMES OF A DOUBLEPARKED CAB WHEN HE GETS A PHONE CALL AT THE OFFICE THIS IS MY OFFICE HE SAYS AS HIS VIBRATING PAGER TELLS HIM ABOUT THE CALL AND HE LOOKS AT HIS GRINNING PARTNER S CARTER BURDEN III WE CAN BE ANYWHERE AND STILL RUN OUR COMPANY MESSRS RECHT 32 YEARS OLD AND BURDEN 25 BELONG TO A GROUP OF ENTREPRENEURS AND MANHATTAN TECH JUNKIES WHO HAVE FIGURED OUT HOW TO MAKE A BUCK OFF THE MERGER OF TELEPHONE AND COMPUTER TECHNOLOGIES THEY RUN DIGITAL TELEMEDIA INC A MANHATTAN CONSULTING CONCERN THAT HELPS COMPANIES SET UP HIGHSPEED COMMUNICATIONS LINES TO THEIR CLIENTS' COMPUTER CENTERS YOU MAY HAVE HEARD OF COMPUTERENGINEERED VIRTUAL REALITY THIS THEN IS TELEMEDIA'S VIRTUAL OFFICE RUN WITH POCKET PAGERS LAPTOP COMPUTERS AND FANCY PHONE SERVICES AND TELEMEDIA IS SHOWING OTHER COMPANIES HOW TO USE DIGITAL COMMUNICATIONS TECHNOLOGY TO CUT THE CORD ON OLD PAPERBASED WAYS OF DOING BUSINESS SOME CLIENTS NOW PROCESS IN HOURS WHAT TAKES SOME OTHER COMPANIES DAYS TO FINISH ONE OF THESE IMAGE AXIS INC IS ELECTRONICALLY RETOUCHING PHOTOS AND OTHER MATERIAL FROM ITS ADAGENCY CLIENTS AND SENDING VARIOUS STAGES OF THE WORK BACK THROUGH HIGHSPEED PHONE LINES ALMOST INSTANTANEOUSLY WE'RE SPEEDING UP COMMUNICATIONS TRANSACTIONS WITH OUR CUSTOMERS WITHOUT USING COURIERS OR HAVING TO DO EXPENSIVE THERMAL AND LASER PROOFING SAYS KEVIN O'NEILL IMAGE AXIS'S PRESIDENT PAPER AND CHEMISTRY IS ELIMINATED I PUT IT ON YOUR MACINTOSH COMPUTER THROUGH THE PHONE LINE AND MESSAGE YOU TO LOOK AT IT MR O'NEILL LIKE HIS DIGITALAGE COMPADRES GABS ON ABOUT THINGS LIKE PROXY FILES AND SCUZZY NETS THE LATTER TERM ISN'T A PUTDOWN IT STANDS FOR A SCSI SMALLCOMPUTER SYSTEMS INTERFACE NETWORK THAT LETS GROUPS OF COMPUTER USERS ELIMINATE TIMECONSUMING FILESHARING BY USING A SINGLE FILE WHICH THEY EACH HAVE ACCESS TO VIA A COMMON HIGHSPEED LINE IMAGE AXIS USES HIGHPERFORMANCE SYSTEMS FROM SUPPLIERS SUCH AS EASTMAN KODAK CO SILICON GRAPHICS INC AND EVERY ARTTECHIE'S INDISPENSABLE APPLIANCE MAKER APPLE COMPUTER INC THESE DIGITAL MACHINES ELECTRONICALLY SCAN AND CONVERT PHOTOS AND EVEN VIDEO IMAGES TO THE ONES AND ZEROS OF COMPUTER CODE AFTER THAT THE INFORMATION CAN BE STORED OR FIRED TO A CLIENT VIA PHONE LINES AND RECONSTITUTED THE INFORMATION IS ARCHIVAL NOTES MR O'NEILL UNLIKE PRINTED PHOTOGRAPHS THE PICTURE LASTS FOREVER IT NEVER FADES IMAGE AXIS GETS A FURTHER BOOST USING NEW HIGHCAPACITY DIGITAL SERVICE FROM NEW YORK TELEPHONE CO THESE TRANSMISSION LINES CALLED ISDN FOR THE INTEGRATED SERVICES DIGITAL NETWORK WHICH USE EXISTING PHONE WIRES CARRY TRAFFIC 10 TIMES FASTER THAN THE SPEED OF MOST MODEMS SO PROOFS CAN BE HANDLED THE SAME DAY AND BE TURNED AROUND FOR FURTHER REFINEMENTS ISDN SERVICE ISN'T AVAILABLE EVERYWHERE IN THE US BUT PRIMARILY IS IN MAJOR METROPOLITAN CENTERS WE'RE KEEPING THINGS DIGITAL AS MUCH AS POSSIBLE SAYS ALISTAIR GILLETTE THE ART PRODUCTION DIRECTOR AT AD AGENCY MEZZINA/BROWN INC EDITABILITY OF PROOFS CAN BE DONE UP TO THE LAST MINUTE THE HIGHTECHMINDED MEZZINA/BROWN IS A CUSTOMER OF IMAGE AXIS AND CREATOR OF RJR NABISCO HOLDINGS CORP'S UBIQUITOUS JOE CAMEL CAMPAIGN DOWN THE HALL FROM MR O'NEILL'S OFFICE ANOTHER TELEMEDIA CLIENT J RANDALL BROCKETT MOVES THE TRACKBALL ON HIS APPLE POWERBOOK DUO IN SEARCH OF A BEAUTIFUL WOMAN MR BROCKETT OWNS MODALINK CORP A TINY PHOTO AND INFORMATION EXCHANGE FOR THE FASHION DESIGN AND ADVERTISING INDUSTRIES AGENCIES AND DIRECTORS OF TV COMMERCIALS CAN GET ACCESS TO HIS DATABASE AND QUICKLY REVIEW MODELS' PHOTOS AND VITAL STATISTICS TO DEMONSTRATE MR BROCKETT USES HIS COMPUTER AND A PHONE LINE TO GAIN ACCESS TO A GENERAL ELECTRIC MAINFRAME COMPUTER HOLDING ONE OF MODALINK'S DATABASES OF MODELS' PICTURES MR BROCKETT TYPES IN BLONDE AND THE COMPUTER SPITS OUT 22 DOCUMENTS INCLUDING ESTELLE 01 A TAP ON A LEVER NEXT TO THE TRACKBALL ORDERS THE COMPUTER TO FETCH AS RECEIVING ESTELLE FLASHES ONTO THE SCREEN A POUTING BLONDE APPEARS STARING VACANTLY INTO THE SKY A FEW MORE COMPUTER COMMANDS AND ESTELLE'S MEASUREMENTS SHOW UP ON THE SCREEN MODALINK'S SERVICE WILL BEGIN IN JUNE AT A FEE OF 10 PER PHOTO FOR COMPANIES THAT WANT TO STORE PICTURES AND A SUBSCRIBER FEE OF 38 A MONTH PLUS STANDARD TRANSMISSION CHARGES MR BROCKETT HAS BEEN TESTING THE SERVICE WITH SEVERAL LARGE ADVERTISING AGENCIES INCLUDING NEW YORK'S FORD MODELS AND PROMODELS OF HAMBURG GERMANY AND HE HOPES TO EXPAND HIS SERVICE TO INCLUDE VIDEO CLIPS WHY IS SUCH A SYSTEM NECESSARY RIGHT NOW SHORT HAIR IS IN SO MODELS ARE CUTTING THEIR HAIR AND THEIR PORTFOLIOS BECOME OBSOLETE SAYS TODD CARTER A PRODUCT DEVELOPMENT MANAGER FOR PRESS LINK A KNIGHTRIDDER INC COMPANY THAT HELPS MODALINK TRANSMIT AND STORE ITS IMAGES VIA THE GE INFORMATION NETWORK MODALINK'S SYSTEM HE SAYS IS A FASTER EASIER WAY OF KEEPING THE PORTFOLIOS CURRENT AND A CLIENT SUCH AS A TV DIRECTOR DOESN'T HAVE TO HOLD UP A PRODUCTION BY SENDING A COURIER TO GET A MODEL'S PORTFOLIO COMPUTER INTEGRATED TELEPHONY IS THE FIRST STEP TOWARD MULTIMEDIA A WORLD OF INTERCONNECTED COMPUTER VIDEO AND REGULAR PHONE TRAFFIC SAYS TODD DAGRES AN ANALYST AT YANKEE GROUP A BOSTON RESEARCH FIRM PC SOFTWARE GIANT MICROSOFT CORP AND CHIP MAKER INTEL CORP RECENTLY ANNOUNCED A STANDARD FOR SEAMLESSLY KNITTING PHONE SYSTEMS AND DESKTOP COMPUTERS NOVELL INC IS DEVELOPING SOFTWARE WITH AMERICAN TELEPHONE & TELEGRAPH CO TO LET OFFICE PHONE SWITCHES HANDLE DATA FROM PC NETWORKS THUS BLENDING THE TECHNOLOGIES SOMETHING HAD TO GIVE TELEMEDIA'S MR BURDEN NOTES THAT STANDARD MODEMS ARE SO SLOW THAT A COMPANY SENDING A HUGE DATA FILE THOUGH A PHONE LINE ACROSS TOWN COULD LITERALLY BEAT THE TRANSMISSION WITH A MESSENGER ISDN LINES FOR WHICH NEW YORK TELEPHONE CHARGES 12 A MONTH MORE THAN A REGULAR PHONE HOOKUP ALREADY ALLOW IMAGE AXIS AND ITS CUSTOMERS TO WORK INTERACTIVELY BY LETTING PEOPLE IN DIFFERENT LOCATIONS WORK ON THE SAME FILE EXPERTS EXPECT THAT BY THE END OF THE DECADE ISDN WILL BE OVERTAKEN BY AN EVEN FASTER TECHNOLOGY CALLED ATM ASYNCHRONOUS TRANSFER MODE IT WILL LINK CONSUMERS AND THEIR COMPUTERS INTO HIGHSPEED INTERACTIVE NETWORKS CAPABLE OF HANDLING PHONE DATA AND HIGHDEFINITION TV TRAFFIC SIMULTANEOUSLY THROUGH A SINGLE PHONE OR CABLE TV LINE ELECTRONIC COMMERCE IS ABOUT TURNING THINGS INTO COMMODITIES AND GETTING ACCESS TO THEM WITH A LAPTOP SAYS PRESS LINK'S ENTHUSIASTIC MR CARTER OTHERS IN THE ROOM ARE BARELY LISTENING HOWEVER AS THEY WAIT ANXIOUSLY FOR MORE PHOTOS FROM MR BROCKETT'S POWERBOOK 9305170102 930517 LAW LEGAL BEAT JUDGES APPOINTED BY BUSH TAKE CONSERVATIVE PATH STUDY SUGGESTS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY APPARENTLY THE FIRST TO OFFER HARD DATA ON THE ISSUE SUPPORTS WHAT SOME LEGAL SCHOLARS HAVE LONG SUSPECTED FEDERAL JUDGES MIX THEIR POLITICS WITH THEIR LAW IN A REVIEW OF 46000 COURT DECISIONS IN THREE CATEGORIES OF CASES EACH WITH LIBERALCONSERVATIVE DIMENSIONS THE STUDY FOUND BY A SLIM MARGIN THAT GEORGE BUSH'S FEDERAL TRIAL JUDGE APPOINTEES ARE MORE CONSERVATIVE THAN THOSE OF ANY OTHER PRESIDENT IN THE PAST 60 YEARS TRIAL JUDGES PICKED BY JIMMY CARTER ON THE OTHER HAND WERE 56 MORE LIKELY TO ISSUE LIBERAL DECISIONS THAN JUDGES APPOINTED BY MR BUSH THE STUDY BY UNIVERSITY OF HOUSTON POLITICAL SCIENCE PROF ROBERT A CARP WAS PUBLISHED IN THE APRILMAY ISSUE OF JUDICATURE THE JOURNAL OF THE AMERICAN JUDICATURE SOCIETY A LEGAL RESEARCH GROUP IN CHICAGO THE FINDINGS RAISE QUESTIONS ABOUT THE THEORY THAT JUDGES MOST OFTEN DECIDE CASES BY PRINCIPLED DECISIONMAKING THAT IS BY RELYING ON FACTS PRECEDENT STATUTE OR CONSTITUTIONAL NORMS RATHER THAN IDEOLOGICAL PRECEPTS FOR THE STUDY PROF CARP EXAMINED FEDERAL TRIALCOURT AND APPELLATE DECISIONS GOING BACK TO 1933 BREAKING THEM DOWN INTO THREE BROAD CATEGORIES CRIMINAL JUSTICE CIVIL LIBERTIES AND ECONOMIC REGULATION WHILE POLITICAL DEFINITIONS CAN BE SLIPPERY PROF CARP CHARACTERIZED AS LIBERAL THE DECISIONS THAT PROTECTED RIGHTS OF THE ACCUSED IN CRIMINAL CASES BROADENED AND EXTENDED MINORITY RIGHTS IN CIVILLIBERTIES CASES AND TILTED AWAY FROM BIG BUSINESS IN CASES INVOLVING LABOR AND ECONOMIC REGULATION FOR INSTANCE IN LABOR AND ECONOMIC CASES BUSHAPPOINTED JUDGES RULED AGAINST BUSINESS 48 OF THE TIME COMPARED WITH 47 FOR JUDGES APPOINTED BY RONALD REAGAN AND 61 FOR CARTER APPOINTEES IN THE BUSINESS CASES AS WELL AS CRIMINAL CASES FEDERAL TRIAL JUDGES APPOINTED BY PRESIDENT BUSH WEREN'T DRAMATICALLY MORE CONSERVATIVE THAN THOSE OF OTHER REPUBLICAN PRESIDENTS BUT IN CIVILLIBERTIES RULINGS MR BUSH'S APPOINTEES VEERED MUCH FURTHER TO THE RIGHT BUSHAPPOINTED JUDGES RULED IN FAVOR OF THE PLAINTIFF IN CIVILRIGHTS CASES 23 OF THE TIME PROF CARP FOUND COMPARED WITH 40 FOR JUDGES APPOINTED BY RICHARD NIXON AND GERALD FORD AND 31 FOR REAGAN APPOINTEES FEDERAL TRIAL JUDGES APPOINTED BY PRESIDENT CARTER WERE MORE THAN TWICE AS LIKELY TO RULE IN FAVOR OF CIVILRIGHTS PLAINTIFFS AS BUSHAPPOINTED JUDGES AFTER 12 YEARS IN THE WHITE HOUSE THE REAGAN AND BUSH ADMINISTRATIONS LEFT A SIGNIFICANT MARK ON THE COURTS PRESIDENT BUSH ALONE APPOINTED 148 FEDERAL JUDGES 37 APPELLATE JUDGES AND TWO SUPREME COURT JUSTICES WHEN BILL CLINTON CAPTURED THE WHITE HOUSE REPUBLICAN JUDICIAL APPOINTEES OUTNUMBERED DEMOCRATIC PICKS 3TO1 BUT A CONSERVATIVE SHIFT IN THE COURTS ISN'T ASSURED FOREVER MR BUSH LEFT 101 VACANCIES FOR FEDERAL JUDGESHIPS AND 18 SEATS OPEN ON FEDERAL APPEALS COURTS PROF CARP'S STUDY FOUND THAT AT THE APPELLATE LEVEL THE IDEOLOGICAL SPLIT BETWEEN DEMOCRATIC AND REPUBLICAN APPOINTEES IS NOT AS DRAMATIC AS AT THE TRIAL LEVEL THAT IS PARTLY BECAUSE APPELLATE JUDGES SIT ON THREEMEMBER PANELS AND TRY TO REACH DECISIONS BY CONSENSUS IN FEDERAL APPEALS COURT RULINGS MR CARP SAID MY FEELING IS THAT ROUGHLY ABOUT 90 OF THE TIME IN ANY GIVEN CASE IT MAKES NO DIFFERENCE WHO THE JUDGE IS THAT CONCLUSION IS SIMILAR TO THE FINDINGS OF DC CIRCUIT COURT OF APPEALS JUDGE HARRY T EDWARDS ONE OF THE PROPONENTS OF THE IDEA THAT PRINCIPLED DECISIONMAKING OUTWEIGHS JUDICIAL IDEOLOGY IN A 1991 WISCONSIN LAW REVIEW ARTICLE THE JUDGE REVIEWED THE DC FEDERAL APPEALS COURT'S OPINIONS OVER THE YEARS AND FOUND THAT IN MORE THAN 90 OF THE CASES THE JUDGES REACHED BROAD AGREEMENT REGARDLESS OF IDEOLOGY ONLY IN A SMALL PERCENTAGE OF CASES WHERE THE LAW IS UNSETTLED OR STILL EMERGING ARE AN APPELLATE JUDGE'S MORAL OR SOCIAL BELIEFS LIKELY TO COME INTO PLAY JUDGE EDWARDS SAID IN AN INTERVIEW IN THE VERY HARD CASES JUDGE EDWARDS SAID JUDGES ARE ALWAYS INFLUENCED BY WHO THEY ARE WHERE THEY COME FROM WHAT THEY THINK AND WHERE THEY'VE BEEN EVELETH TACONITE CO'S MINES ARE A HOSTILE ENVIRONMENT FOR ALL HOURLY WOMEN WORKERS A FEDERAL JUDGE RULED IN THE FIRST CLASSACTION SEXUALHARASSMENT SUIT IN HIS DECISION JUDGE RICHARD H KYLE IN MINNEAPOLIS SAID THE DULUTH MINN COMPANY'S MINES ARE A SEXUALIZED MALEORIENTED AND ANTIFEMALE ATMOSPHERE NOW THAT THE COMPANY HAS BEEN FOUND LIABLE THE NEXT STEP WILL BE FOR THE COURT TO DECIDE DAMAGES FOR THE 100 TO 200 WOMEN WHO ARE PART OF THE CLASS JUDGE KYLE RULED THE CLASSACTION PLAINTIFFS HAVE THE BURDEN OF SHOWING THAT THEY WERE AT LEAST AS AFFECTED AS A REASONABLE WOMAN BY THE HARASSMENT THIS IS UNLIKE OTHER TYPES OF CLASS ACTIONS SUCH AS SEXDISCRIMINATION CASES IN WHICH THE BURDEN IS ON THE COMPANY TO SHOW THAT IT DIDN'T DISCRIMINATE SEXUALHARASSMENT CASES USUALLY ARE PURSUED ONLY ON BEHALF OF INDIVIDUALS THE EVELETH CASE WAS CONSIDERED AN IMPORTANT BREAKTHROUGH IN 1991 WHEN THE COURT APPROVED THE CLASS ACTION WHICH GENERALLY REQUIRES THAT THE GROUP OF PLAINTIFFS BE SIMILARLY SITUATED THAT IS CONSIDERED DIFFICULT IN SEXUAL HARASSMENT CASES BECAUSE IT MUST BE SHOWN THAT ALL THE WOMEN IN THE WORKPLACE WERE SIMILARLY HARMED BY THE MISCONDUCT IN THE EVELETH CASE THE EVIDENCE OF HARASSMENT INCLUDED NUDE PHOTOS AMATEUR CARTOONS AND GRAFFITI AT THE MINES AND IN SUPERVISORS' OFFICES IN 1990 NO MORE THAN 5 OF HOURLY EMPLOYEES WERE WOMEN EVELETH MAINTAINS THAT NO SEXUAL HARASSMENT OCCURRED AT THE COMPANY AND SAID IT EXPECTS TO ULTIMATELY PREVAIL IN THE CASE THE COMPANY WHICH IS MANAGED AND PARTLY OWNED BY OGLEBAY NORTON CO CLEVELAND SAID IT IMMEDIATELY INVESTIGATES AND CORRECTS ALLEGATIONS OF SEXUAL HARASSMENT A SPECIAL MASTER APPOINTED BY THE COURT WILL RECOMMEND WHICH OF THE CLASS MEMBERS SHOULD BE ENTITLED TO DAMAGES AND HOW MUCH THEY SHOULD RECEIVE IT COULD BE MULTIMILLIONS SAID PAUL C SPRENGER OF THE WASHINGTON AND MINNEAPOLIS LAW FIRM SPRENGER & LANG WHICH REPRESENTS THE WOMEN ALSO TWO LEAD PLAINTIFFS IN THE CASE SAY THEY EXPERIENCED POSTTRAUMATIC STRESS BECAUSE OF THE HARASSMENT WHICH PREVENTED THEM FROM WORKING AND FOR WHICH THEY ARE SEEKING ADDITIONAL DAMAGES INHOUSE ATTORNEYS EXPECT CLINTON ADMINISTRATION POLICIES TO INCREASE COMPANIES' LEGAL EXPENSES DESPITE CORPORATE PRESSURE TO HOLD THE LINE ON SPENDING A SURVEY OF CORPORATE LEGAL DEPARTMENTS FOUND THAT 92 EXPECT LEGAL EXPENSES TO RISE AS A RESULT OF THE ADMINISTRATION'S POLICIES IN AREAS SUCH AS HEALTH CARE AND THE ENVIRONMENT BUT 57 SAID THEY WILL BE UNDER MORE PRESSURE THIS YEAR THAN THE YEAR BEFORE TO CONTAIN LEGAL COSTS THE SURVEY WAS CONDUCTED BY ECONOMIC ANALYSIS GROUP LTD WASHINGTON AND CRAIG CONSULTING CO NEW YORK TWO LEGALDEPARTMENT CONSULTING COMPANIES THE LEGAL DEPARTMENTS OF 90 COMPANIES RESPONDED TO THE SURVEY ON AVERAGE THE INHOUSE LAWYERS SAID THEIR 1993 LEGAL BUDGETS WERE FLAT FROM THE YEAR BEFORE BUT AMONG LARGE LEGAL DEPARTMENTS WITH 50 OR MORE ATTORNEYS LEGAL BUDGETS ON AVERAGE DECLINED 38 FROM 1992 AMONG MIDSIZE LAW DEPARTMENTS OF 10 TO 49 ATTORNEYS THE BUDGETS ROSE AN AVERAGE OF 47 ONE BRIGHT SPOT FEWER LEGAL DEPARTMENTS EXPECT TO LAY OFF LAWYERS OR STAFF EMPLOYEES COMPARED WITH 1992 SAID DOUGLAS YOUNG OF ECONOMIC ANALYSIS GROUP INSTEAD LEGAL DEPARTMENTS ARE TAKING STEPS TO CONTROL COSTS HE SAID SUCH AS USING COMPUTERS MORE TO IMPROVE PRODUCTIVITY ACCORDING TO THE SURVEY 24 OF THE LEGAL DEPARTMENTS THIS YEAR PLAN TO LINK THEIR COMPUTER SYSTEMS WITH THOSE OF OUTSIDE LAW FIRMS COMPARED WITH 17 IN 1992 ALSO 50 OF THE DEPARTMENTS EXPECT TO REDUCE COSTS THIS YEAR BY USING ALTERNATIVE DISPUTE RESOLUTION UP FROM 32 LAST YEAR MEANWHILE THE LEGAL DEPARTMENTS SAID THE PERCENTAGE OF THEIR BUDGETS SPENT ON OUTSIDE LAW FIRMS WILL DECREASE ON AVERAGE TO 55 FROM 58 IN 1992 THE LARGE LEGAL DEPARTMENTS SAID THEY PLAN TO USE AN AVERAGE OF 212 OUTSIDE LAW FIRMS IN 1993 23 FEWER THAN IN 1992 JUNDA WOO AND WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9305170101 930517 ERICSSON SEES ORDERS FOR CELLULAR PRODUCTS RISING OVER 30 IN '93 SPECIAL TO THE WALL STREET JOURNAL NEW YORK LM ERICSSON TELEPHONE CO CHAIRMAN LARS RAMQVIST SAID ORDERS DRIVEN MAINLY BY THE COMPANY'S CELLULAR EQUIPMENT BUSINESS ARE EXPECTED TO GROW MORE THAN 30 IN 1993 TO 9 BILLION TO 10 BILLION THE CHAIRMAN SAID THE US IS NOW THE COMPANY'S LARGEST MARKET ACCOUNTING FOR 13 OF ITS OVERALL REVENUE MR RAMQVIST SAID RADIO EQUIPMENT ORDERS IN THE OVERALL MARKET ARE UP MORE THAN 50 THIS YEAR AND FOR ERICSSON ALONE ARE UP 20 TO 25 IN THE CELLULAR BUSINESS HE SAID WE'RE UP EVEN MORE 70 IN 1992 AND 88 IN JUST THE FIRST QUARTER OF 1993 VOLUMES IN OUR FACTORIES ARE UP ENORMOUSLY THE CHAIRMAN SAID MUCH OF THE INCREASE WAS IN THE US MARKET WHERE THE COMPANY PLANS TO EXPAND THE PLANT THAT IT RUNS WITH GENERAL ELECTRIC CO IN LYNCHBURG VA THE ERICSSONGE VENTURE PRODUCES RADIO COMMUNICATIONS GEAR INCLUDING POCKETSIZED TELEPHONES USED IN THE US AND EUROPE MR RAMQVIST SAID MUCH OF THE PLANT EXPANSION IN LYNCHBURG IS TO SUPPLY DIGITAL PHONES FOR THE RAPIDLY EXPANDING EUROPEAN GSM CELLULAR NETWORK ERICSSON RECENTLY GOT ITS LARGEST NETWORK EQUIPMENT ORDER IN GERMANY TO EXPAND THE GERMAN GSM SYSTEM AND LYNCHBURG WILL HAVE TO SUPPLY PHONES TO CUSTOMERS USING THAT NETWORK A DRIVING FORCE FOR US NOW IS THE GSM NETWORK IN EUROPE MR RAMQVIST SAID BUT HE TEMPERED SOME OF THE OPTIMISM BY NOTING THE RECENT AGREEMENT FOR AMERICAN TELEPHONE & TELEGRAPH CO TO PURCHASE 33 OF MCCAW CELLULAR COMMUNICATIONS CO ONE OF ERICSSON'S BIGGEST CUSTOMERS MR RAMQVIST SAID THAT IN THE SHORTTERM HE EXPECTS MCCAW TO CONTINUE BUYING ITS NETWORK EQUIPMENT FROM ERICSSON HOWEVER HE SAID AS AT&T INCREASES OWNERSHIP IT WOULD BE FOOLISH TO SAY THIS WOULD NOT CHANGE THE EQUATION FOR NOW THOUGH MR RAMQVIST SAID THE COMPANY IS TRIPLING PRODUCTION IN SOME OF ITS PRODUCTS AND HE CLAIMED ERICSSON IS THE NUMBER ONE SUPPLIER OF DIGITAL POCKET TELEPHONES IN THE WORLD 9305170100 930517 YOUR MONEY MATTERS BUT JUST HOW RISKY ARE BONDS FOR YOU BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL AT A TIME WHEN NAGGING INFLATION FEARS ARE PUSHING INTEREST RATES UP AND BOND PRICES DOWN JUST HOW RISKY IS IT FOR INDIVIDUAL INVESTORS TO BUY BONDS AND BOND FUNDS THE ANSWER DEPENDS NOT ONLY ON WHAT KIND OF BOND OR FUND YOU BUY BUT ALSO ITS YIELD ITS MATURITY AND ITS RATING SOME BONDS DROP SHARPLY IN VALUE WITH EVEN A SMALL UPTICK IN INTEREST RATES OTHERS BARELY MOVE DIFFERENT SECURITIES ACT DIFFERENTLY AND IN THIS MARKET YOU HAVE TO KNOW WHAT THEY EACH DO SAYS HUGH LAMLE EXECUTIVE VICE PRESIDENT OF MD SASS INVESTORS SERVICES IN NEW YORK AND YOU CAN'T GENERALIZE FROM WHAT YOU LEARNED FIVE OR 10 YEARS AGO WHEN INTEREST RATES WERE AT A DIFFERENT LEVEL LONGTERM BONDS WHICH TYPICALLY MATURE IN 20 YEARS TO 30 YEARS TAKE THE BIGGEST HIT WHEN INTEREST RATES MOVE UP OR DOWN TAKE A 30YEAR TREASURY BOND WHICH NOW YIELDS ABOUT 695 IF INTEREST RATES REMAINED AT CURRENT LEVELS AN INVESTOR WHO BOUGHT THE BOND TODAY REINVESTED THE INTEREST PAYMENTS OVER THE NEXT YEAR AND THEN SOLD THE BOND WOULD HAVE A TOTAL RETURN OF 707 BUT IF INTEREST RATES WERE TO RISE BY JUST ONE PERCENTAGE POINT OVER THE YEAR THE VALUE OF THAT 30YEAR BOND WOULD FALL ENOUGH TO WIPE OUT THE INTEREST PAYMENTS AND PART OF THE INVESTOR'S PRINCIPAL ON A TOTALRETURN BASIS MR LAMLE CALCULATES THE INVESTOR WOULD HAVE A LOSS OF 391 OF COURSE AN INVESTOR WHO HELD THE BOND TO MATURITY WOULD SUFFER ONLY THE RISK OF EARNING LESS THAN MARKET INTEREST RATES OVER AT LEAST PART OF THE NEXT 30 YEARS BUT THAT BY ITSELF CAN BE A SIGNIFICANT RISK JUST ASK FOLKS WHO BOUGHT LONGTERM BONDS IN THE 1970S ONLY TO SEE THEM DROP IN VALUE TO 40 CENTS ON THE DOLLAR WHEN INTEREST RATES SOARED THOSE WHO HELD THEIR BONDS WERE LOCKED INTO 6 OR 7 A YEAR INTEREST WHILE OTHER PEOPLE WERE MAKING TWICE THAT UNFORTUNATELY PEOPLE DON'T REALLY LOOK AT THE TRADEOFFS SAYS BRUCE A WHITEFORD MANAGER OF THE FIXEDINCOME DEPARTMENT AT CHASE MANHATTAN BANK'S US PRIVATE BANKING DIVISION THEY JUST LOOK AT YIELD THEY DON'T REALIZE HOW CHANGES IN INTEREST RATES HAVE A VERY REAL EFFECT EVEN WORSE THAN A LONGTERM BOND HOWEVER IS A LONGTERM ZEROCOUPON BOND WHICH IS A BOND THAT HAS BEEN STRIPPED OF ITS INTEREST AND SOLD AT A DEEP DISCOUNT TO ITS REDEMPTION PRICE AT MATURITY WITH NO INTEREST PAYMENTS THAT CAN BE INVESTED AT NEW HIGHER RATES THE PRICE OF ZEROCOUPON BONDS IS EVEN MORE SENSITIVE TO CHANGES IN MARKET INTEREST RATES THE SAME ONE PERCENTAGE POINT RISE IN RATES THAT CREATES THE 391 LOSS IN THE TOTAL RETURN ON A 30YEAR TREASURY CREATES A WHOPPING 1870 LOSS IN A 30YEAR ZERO INVESTORS SHOULD BE AWARE THAT TODAY'S LOW INTEREST RATES MAGNIFY THE IMPACT OF ANY RATE INCREASE THAT'S BECAUSE BOTH THE INTEREST PAID BY THE BOND AND THE INTEREST PAID ON THAT INTEREST ARE LOWER REDUCING WHAT AN INVESTOR WOULD MAKE OVER TIME WITH A ONE PERCENTAGE POINT RISE IN RATES OVER THE NEXT YEAR FOR EXAMPLE THE PRICE ON A 30YEAR TREASURY WOULD FALL ABOUT 109 PER 1000 FACE AMOUNT BUT IF THE SAME INCREASE HAD TAKEN PLACE A FEW YEARS AGO WHEN BOND RATES WERE FIVE PERCENTAGE POINTS HIGHER THE PRICE WOULD HAVE FALLEN ONLY ABOUT 75 PER 1000 THE IMPACT ON LOWER QUALITY BONDS IS ALSO LIKELY TO BE GREATER THAN THAT EXPERIENCED BY TOPRATED SECURITIES THAT'S BECAUSE THE CURRENT SPREAD BETWEEN TOPQUALITY AND LOWERGRADE BONDS IS VERY NARROWONLY ABOUT A QUARTER OF A PERCENTAGE POINT BETWEEN A TRIPLEARATED 10YEAR MUNICIPAL AND A SINGLEARATED BOND BUT WHEN INTEREST RATES HEAD UP THE YIELD BETWEEN QUALITY WIDENS LOWERING THE COMPARATIVE VALUE OF THE LOWERRATED BOND SAYS RICHARD LEHMANN OF THE BOND INVESTORS ASSOCIATION MIAMI LAKES FLA ALL OF THIS DOESN'T MEAN INVESTORS SHOULD SIMPLY HIDE IN THE SAFETY OF A MONEYMARKET FUND TRUE MONEY FUNDS SEEK TO MAINTAIN A FIXED VALUE OF 1 A SHARE BUT ADVISERS NOTE THAT THERE IS A SIGNIFICANT COST TO THE COMFORT THAT A FIXED SHARE PRICE CAN BRING WHILE MONEY FUNDS CURRENTLY YIELD LESS THAN 3 FIVEYEAR TREASURYS OFFER A BIT MORE THAN 5 LOOKED AT THIS WAY THE PRICE OF THE INSURANCE AFFORDED BY STAYING IN A MONEY FUND IS AROUND TWO PERCENTAGE POINTS A YEAR THAT KIND OF PRICE MAY BE FINE FOR SOME INVESTORS WHO WANT ABSOLUTE STABILITY SAYS MR LAMLE OF MD SASS BUT FOR MOST IT'S NOT TWO PERCENTAGE POINTS A YEAR ADDS UP TO AN EXTRA 10 PERCENTAGE POINTS OVER THE COURSE OF FIVE YEARS HE NOTES THE ANSWER MANY ADVISERS SAY IS TO GO FOR SHORTERTERM SECURITIES WHICH OFFER A HIGHER YIELD THAN MONEY FUNDS BUT ARE FAR LESS VOLATILE THAN LONGTERM BONDS INVESTORS BUYING FIVEYEAR TREASURYS FOR EXAMPLE WOULDN'T ACTUALLY START LOSING MONEY ON THEIR INVESTMENTS UNLESS RATES JUMPED MORE THAN 1 1/2 PERCENTAGE POINTS IN THE NEXT YEAR AND A THREEYEAR TREASURY WOULD HAVE A POSITIVE YIELD EVEN IF RATES ROSE A FULL TWO PERCENTAGE POINTS MOREOVER INVESTORS WITH SHORTER MATURITIES GET THE PROTECTION OF ROLLING DOWN THE YIELD CURVE TAKING ADVANTAGE OF THE FACT THAT YIELDS FALL SHARPLY AS MATURITIES SHORTEN SAYS THERESA A HAVELL DIRECTOR OF FIXED INCOME AT NEUBERGER & BERMAN NEW YORK FOR EXAMPLE A FIVEYEAR TREASURY WHICH YIELDS ABOUT 52 COULD BE SOLD AT A PROFIT NEXT YEAR IF RATES HOLD STEADY THAT'S BECAUSE IT THEN WOULD BE IN EFFECT A FOURYEAR SECURITY AND WITH FOURYEAR NOTES YIELDING ONLY ABOUT 485 IT WOULD COMMAND A PREMIUM PRICE IF RATES ROSE AN INVESTOR STILL WOULDN'T COME UP SHORT UNLESS THEY JUMPED MORE THAN 1 3/4 PERCENTAGE POINTS IN THE NEXT YEAR THAT'S ONE REASON WHY ADVISERS LIKE MS HAVELL SEE NO REAL RISK IN BEING FIRMLY PLANTED IN THE MIDDLE OF THE MARKET A POSITION SHE SAYS MAKES SENSE NO MATTER WHERE YOU ARE IN AN INTERESTRATE CYCLE SEE RELATED ARTICLE CREDIT MARKETS BOND JITTERS GROW AS SIGNS OF INFLATION MOUNT WSJ MAY 17 1993 9305170099 930517 SILICON GRAPHICS DEVELOPS CHIP MOUNTAIN VIEW CALIF MIPS TECHNOLOGIES INC A UNIT OF SILICON GRAPHICS INC SAID IT AND JAPAN'S NEC CORP PLAN TO ANNOUNCE TODAY THAT THEY ARE DEVELOPING A NEW LAPTOP COMPUTER CHIP WITH COMPUTING POWER COMPARABLE TO INTEL CORP'S NEW PENTIUM CHIP PROTOTYPES OF THE CHIP CALLED THE R4200 WILL BE AVAILABLE IN LATE 1993 AND WILL BE MANUFACTURED BY NEC THE CHIP IS DESIGNED TO RUN COMPLEX SOFTWARE SUCH AS MICROSOFT CORP'S PLANNED WINDOWS NT SOFTWARE SILICON GRAPHICS SAID THE COMPANY DIDN'T RELEASE PRICING INFORMATION 9305170097 930517 SENATE BANKING LAWYER SLATED FOR TREASURY POST WASHINGTON PRESIDENT CLINTON SAID HE PLANS TO NOMINATE RICHARD CARNELL A LAWYER ON THE STAFF OF THE SENATE BANKING COMMITTEE TO BECOME ASSISTANT TREASURY SECRETARY FOR FINANCIAL INSTITUTIONS IN HIS NEW POST MR CARNELL 39 YEARS OLD WILL HELP SHAPE ADMINISTRATION POLICY DEALING WITH BANKS OTHER FINANCIAL SERVICE FIRMS AND GOVERNMENTSPONSORED ENTERPRISES SUCH AS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION MR CARNELL WAS ONE OF THE KEY DRAFTERS OF A SWEEPING 1991 BANKING LAW MANY BANKERS COMPLAIN THAT THE NEW LAW IMPOSES EXCESSIVE REGULATORY BURDENS ON THEM BUT THE LAW BY ENCOURAGING BANKS TO INCREASE THEIR CAPITAL HAS CONTRIBUTED IMPORTANTLY TO THE RECENT REDUCTION OF BANK FAILURES MR CARNELL A GRADUATE OF HARVARD LAW SCHOOL WAS A LAWYER AT THE FEDERAL RESERVE BOARD BEFORE BECOMING A SENIOR COUNSEL TO THE SENATE BANKING PANEL HE IS EXPECTED TO WIN SENATE CONFIRMATION EASILY 9305170096 930517 RADIATION SYSTEMS' BUYBACK STERLING VA RADIATION SYSTEMS INC SAID ITS BOARD APPROVED THE BUYBACK OF UP TO 250000 OF ITS SHARES BECAUSE IT CONSIDERS THEM UNDERVALUED IN THE MARKET THE SHARES TO BE REPURCHASED PERIODICALLY IN OPENMARKET OR PRIVATE TRANSACTIONS WILL EITHER BE RETIRED USED FOR ACQUISITIONS OR FOR THE COMPANY'S EMPLOYEE STOCK OWNERSHIP PLAN THE COMPANY SAID IT SAID AN INITIAL 80000 SHARES ALREADY HAVE BEEN BOUGHT BACK AT 10875 EACH RADIATION SYSTEMS IS A DESIGNER AND MAKER OF ANTENNA SYSTEMS AND COMPONENTS FOR RADAR AIR TRAFFIC CONTROL AND OTHER APPLICATIONS ITS SHARES CLOSED FRIDAY AT 11625 UP 625 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9305170095 930517 ICAHN'S 118 BILLION CASH BID FOR EII IS HIS LATEST EFFORT TO BLOCK RIVAL BLACK BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RIVAL DEALMAKERS CARL ICAHN AND LEON BLACK ARE ONETIME TENNIS PARTNERS BUT THEY'RE PLAYING MORE MATCHES IN BANKRUPTCY COURT THESE DAYS THAN ON THE TENNIS COURT THE LATEST VOLLEY CAME FRIDAY WHEN MR ICAHN MADE ANOTHER ATTEMPT TO BLOCK MR BLACK FROM TAKING CONTROL OF EII HOLDINGS INC OFFERING 118 BILLION IN CASH FOR THE HOLDING COMPANY THAT IS OPERATING UNDER BANKRUPTCY COURT PROTECTION IN A LETTER TO EII'S BOARD MR ICAHN PROPOSED THAT SENIOR DEBTHOLDERS BE REPAID IN FULL PLUS ACCRUED INTEREST AND OFFERED THE JUNIOR DEBENTURE HOLDERS 740 FOR EACH 1000 FACE AMOUNT OF DEBT FOR A TOTAL CASH OUTLAY OF 805 MILLION THE OFFER INCLUDES 375 MILLION OF CASH ALREADY IN EII THIS IS MR ICAHN'S FOURTH ATTEMPT TO BUY THE PARENT OF SAMSONITE LUGGAGE CULLIGAN WATER SOFTENER AND MCGREGOR APPAREL BUT IT'S HIS FIRST CASH OFFER STILL ANALYSTS ARE SKEPTICAL AT THE MOMENT THE OFFER IS MEANINGLESS SAID MAX HOLMES DIRECTOR OF BANKRUPTCY RESEARCH AT SALOMON BROTHERS INC THAT IS BECAUSE EII CURRENTLY HAS THE EXCLUSIVE RIGHT UNDER BANKRUPTCY LAW TO PUT FORTH A PLAN OF REORGANIZATION THAT PLAN PROPOSED BY THE COMPANY IN FEBRUARY WAS DEFEATED LAST MONDAY BY MR ICAHN WHO OWNS 314 OF EII'S JUNIOR DEBENTURES BUT THE COURT COULD FORCE THE ADOPTION OF THE COMPANY'S PLAN ANYWAY IN A CRAMDOWN PROCEDURE AT THE NEXT HEARING BEFORE JUDGE CORNELIUS BLACKSHEAR IN NEW YORK ON MAY 24 MR ICAHN OBJECTED TO THE COMPANY'S PLAN BECAUSE IT WOULD GIVE CONTROL OF EII TO APOLLO ADVISERS WHICH MR BLACK MANAGES APOLLO OWNS 24 OF THE COMPANY'S SENIOR DEBT AND 27 OF THE JUNIOR DEBT WHICH WOULD GIVE IT JUST OVER 50 OF THE NEW EQUITY UNDER A CONVERSION PRIVILEGE IN THE COMPANY'S PROPOSED RESTRUCTURING ACCORDING TO THE COMPANY'S PLAN SENIOR BONDHOLDERS WOULD RECEIVE A COMBINATION OF CASH NEW NOTES AND STOCK VALUED AT 1140 FOR EACH 1000 FACE AMOUNT OF DEBT IN THE PLAN BUT MAY ELECT TO RECEIVE THEIR DISTRIBUTION ENTIRELY IN NEW STOCK JUNIOR DEBENTURE HOLDERS WOULD RECEIVE A DEBTANDSTOCK PACKAGE VALUED AT 590 FOR EACH 1000 FACE AMOUNT OF DEBT MR ICAHN CONTENDS THE COMPANY'S PLAN SHOULDN'T BE APPROVED BY THE COURT BECAUSE IT REPAYS SENIOR BONDHOLDERS IN EXCESS OF THE 648 MILLION VALUE OF THEIR CLAIM BECAUSE EII ASSIGNS A VALUE OF 1455 A SHARE TO THE STOCK WHILE OTHER ANALYSTS VALUE THE STOCK BETWEEN 18 AND 2250 IN HIS LETTER TO THE BOARD MR ICAHN SAID THAT THE FUNDS FOR HIS OFFER ARE ALREADY AVAILABLE SINCE HE RECENTLY REFINANCED THE RAIL CAR BUSINESS OF ACF INDUSTRIES INC HIS HOLDING COMPANY HE ADDED HE WOULD PUT DOWN A 50 MILLION NONREFUNDABLE DEPOSIT ONCE THE THREEPERSON BOARD OF EII ACCEPTS HIS OFFER MR ICAHN IS ALSO UNHAPPY ABOUT ASPECTS OF A PROPOSAL TO CREATE A LITIGATION TRUST FOR THE BENEFIT OF THE JUNIOR DEBTHOLDERS CHARGED WITH GETTING RECOVERIES FROM FORMER EII OWNER MESHULAM RIKLIS THE CREDITORS COMMITTEE AGREED TO APPOINT HILLEL WEINBERGER OF CNA FINANCIAL A SUBSIDIARY OF LOEWS CORP THAT HOLDS ABOUT 3 OF THE SENIOR DEBT AND 6 OF THE JUNIOR DEBT AS SOLE TRUSTEE MR WEINBERGER WILL PERSONALLY BE PAID 100000 PLUS 1 OF ANY RECOVERIES TO MANAGE THE TRUST THIS WILL BE DONE ON MY OWN TIME SAID MR WEINBERGER SETTLEMENT TALKS LAST WEEK PRODUCED ANOTHER 65 MILLION FROM A RIKLIS AFFILIATE TO BE SPLIT BETWEEN THE JUNIOR DEBENTURE HOLDERS AND ANOTHER RIKLIS AFFILIATE ACCORDING TO AN EARLIER AGREEMENT IN A STATEMENT STEVEN GREEN CHAIRMAN OF EII'S BOARD SAID THAT MR ICAHN'S PROPOSAL HAD BEEN FORWARDED TO THE EII CREDITORS COMMITTEE WHICH IS SCHEDULED TO MEET TONIGHT I WOULD BE SURPRISED IF THE COMMITTEE WERE TO PUT ITS PLAN ON HOLD IN ORDER TO EXPLORE THIS PROPOSAL SAID ROBERT FALK A PRINCIPAL AT APOLLO BUT TO THE MARKET THE ICAHN OFFER LOOKS TANTALIZING THIS IS AN OLDFASHIONED TENDER OFFER FOR CASH SAID DARRYL L SCHALL AN ANALYST WITH DABNEY RESNICK IN LOS ANGELES THERE'S BEEN A FEELING IN THE MARKET THAT SOMEONE WOULD COME IN WITH CASH INDEED THE JUNIOR BONDS HAVE BEEN HOVERING AT A PRICE OF 70 CENTS ON THE DOLLAR WELL ABOVE THE 59 CENTS THEY ARE VALUED AT IN THE COMPANY'S PLAN FOLLOWING MR ICAHN'S ANNOUNCEMENT THEY SHOT UP TO 74 GAINING 40 FOR EACH 1000 FACE AMOUNT ON FAIRLY HEAVY TRADING VOLUME THERE'S NOT A LOT OF DOWNSIDE TO THESE BONDS SAID SALOMON'S MR HOLMES BUT NEWCOMERS CERTAINLY WON'T FARE AS WELL AS MR ICAHN AND MR BLACK MR ICAHN WHO BOUGHT HIS BONDS FOR ABOUT 35 CENTS ON THE DOLLAR STANDS TO ROUGHLY DOUBLE HIS MONEY EVEN UNDER THE COMPANY'S PLAN AT THE TIME MR BLACK ACQUIRED HIS POSITION THROUGH APOLLO ADVISERS' PURCHASE OF THE EXECUTIVE LIFE INSURANCE CO OF CALIFORNIA'S JUNKBOND PORTFOLIO THE SENIOR BONDS WERE VALUED AT ABOUT 29 CENTS ON THE DOLLAR AND THE JUNIOR BONDS AT LESS THAN HALF THAT MR BLACK IS SURE TO NEARLY TRIPLE HIS INVESTMENT 9305170094 930517 TECHNOLOGY & HEALTH MOTOROLA SEEKS TOP ROLE AS SUPPLIER OF CHIPS FOR 3 NEW TYPES OF COMPUTERS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL MOTOROLA INC IS GUNNING FOR A PLACE AS A MAJOR SUPPLIER OF CHIPS FOR PERSONAL COMMUNICATORS AND OTHER NEW TYPES OF COMPUTERS TODAY THE SCHAUMBURG ILL ELECTRONICS CONCERN PLANS TO DISCLOSE TECHNICAL DETAILS ABOUT THREE NEW COMPUTER CHIPS ONE OF WHICH IS CALLED DRAGON TARGETED AT THE NASCENT MARKET FOR HANDHELD COMPUTERS OR PERSONAL COMMUNICATORS MOTOROLA ALSO PLANS TO ANNOUNCE DETAILS OF A CHIP PLANNED FOR HIGHEND LAPTOP COMPUTERS AND FOR COMPACT DISK SYSTEMS FOR HOME TELEVISIONS ALTHOUGH THE MARKET FOR HANDHELD COMPUTERS IS YET UNFORMED SEVERAL COMPANIES INCLUDING APPLE COMPUTER INC INTEL CORP AND AMERICAN TELEPHONE & TELEGRAPH CO HAVE ALREADY ANNOUNCED PLANS TO USE CHIPS OF THEIR OWN CHOOSING IN DEVELOPING THE PORTABLE DEVICES HOWEVER THE COMMERCIAL SUCCESS OF SUCH DEVICES IS STILL UNPROVEN AND DEPENDS ON A VARIETY OF FACTORS INCLUDING CUSTOMER ACCEPTANCE ATTRACTIVE PRICES SOPHISTICATED SOFTWARE AND IMPROVED WIRELESS COMMUNICATIONS TECHNOLOGY JACK BROWNE A MOTOROLA VICE PRESIDENT SAID MOTOROLA EXPECTS TO SUPPLY ITS CHIPS TO AT LEAST A THIRD OF THE ENTIRE PERSONAL COMMUNICATOR MARKET ESTIMATED BY INDUSTRY ANALYSTS TO REACH 500 MILLION BY 1995 HE SAID THE DRAGON CHIP OFFERS 25 MORE COMPUTING POWER THAN COMPARABLE CHIPS MADE BY COMPETITORS THE CHIP IS DESIGNED TO WORK WITH SOFTWARE BEING DEVELOPED BY GENERAL MAGIC INC A MOUNTAIN VIEW CALIF COMPANY WHOSE BACKERS INCLUDE MOTOROLA APPLE AT&T SONY CORP AND OTHER BIG PLAYERS MR BROWNE ESTIMATED MOTOROLA WOULD SHIP ABOUT 50000 DRAGON CHIPS IN 1993 AND ABOUT 250000 OF THE CHIPS IN 1994 THE CHIPS WILL BE USED IN A MOTOROLA VERSION OF A PERSONAL COMMUNICATOR WHICH IS EXPECTED TO BEGIN SELLING AT THE END OF 1993 COMPUTER MANUFACTURERS IN JAPAN TAIWAN AND EUROPE ARE ALSO CONSIDERING THE CHIP FOR THEIR OWN PRODUCTS HE SAID A 16MEGAHERTZ VERSION OF THE CHIP WILL SELL FOR 2820 EACH IN QUANTITIES OF 10000 UNITS HE SAID MOTOROLA'S SUCCESS AS WELL AS THE SUCCESS OF ITS COMPETITORS IN THE HANDHELD COMPUTER MARKET DEPENDS MORE ON THE TECHNICAL ELEGANCE OF THEIR SOFTWARE THAN ON HARDWARE SPECIFICATIONS SAID MICHAEL SLATER PUBLISHER OF MICROPROCESSOR REPORT AN INDUSTRY NEWSLETTER MOTOROLA'S SUCCESS IS COMPLETELY DEPENDENT ON A PIECE OF SOFTWARE THAT NOBODY'S SEEN MR SLATER SAID MOTOROLA PLANS TO ALSO DISCLOSE DETAILS ABOUT A NEW HIGHEND CHIP FOR LAPTOP COMPUTERS THE CHIP CALLED THE 68040 V IS DESIGNED TO USE LESS POWER THAN OLDER MODELS OF THE CHIP WHICH WILL EFFECTIVELY DOUBLE BATTERY LIFE WHEN USED IN LAPTOP COMPUTERS MR BROWNE SAID MOTOROLA EXPECTS TO BEGIN VOLUME SHIPMENTS OF THE CHIP IN THE SECOND QUARTER OF 1994 WITH TOTAL 1994 SHIPMENTS ESTIMATED TO REACH ONE MILLION UNITS MR BROWNE SAID A PRICE HASN'T BEEN SET HE SAID EXISTING VERSIONS OF 68040 CHIPS USED IN DESKTOP COMPUTERS SELL FOR 200 TO 300 EACH HE SAID MOTOROLA ALSO PLANS TO UNVEIL A NEW CHIP DESIGNED FOR COMPACT DISK SYSTEMS MADE BY PHILIPS CONSUMER ELECTRONICS NV A UNIT OF PHILIPS ELECTRONICS NV AND SONY WHICH ARE USED WITH HOME TELEVISIONS TO PLAY EDUCATIONAL AND ENTERTAINMENT COMPUTER PROGRAMS THAT CHIP CALLED THE 68341 IS EXPECTED TO BEGIN VOLUME SHIPMENTS IN THE FOURTH QUARTER OF 1993 WITH SHIPMENTS EXPECTED TO REACH ABOUT 600000 UNITS IN ALL OF 1994 MR BROWNE SAID THE CHIP WILL BE PRICED AT 2165 EACH IN QUANTITIES OF 10000 UNITS 9305170093 930517 ABREAST OF THE MARKET CLINTON'S CLOUT WEARS OFF IN STOCK MARKET BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOME BIG STOCKS ARE SNAPPING BACK FROM A BAD CASE OF CLINTONITIS AFTER GETTING CLOBBERED BY BILL CLINTON'S ANTIBUSINESS RHETORIC A NUMBER OF DRUG HEALTHCARE MINING AND SIN STOCKS SUCH AS ANHEUSERBUSCH AND ADOLPH COORS ARE SHOWING SIGNS OF RENEWED VITALITY TO STOCK ANALYSTS THE RALLY IN THESE BEATENDOWN GROUPS IS THE CLEAREST SIGN YET THAT INVESTORS ARE STARTING TO DOUBT MR CLINTON'S ABILITY TO STEER HIS REFORMS THROUGH CONGRESS A LOT OF INVESTORS ARE BETTING SOMEWHAT PREMATURELY THAT GRIDLOCK IS BACK AND ARE REVERSING SOME OF THEIR CLINTON INVESTMENT THEMES SAYS THOMAS GALLAGHER POLITICAL ANALYST AT SHEARSON LEHMAN BROTHERS IN WASHINGTON MANY OF THEM ARE DECLINTONIZING THEIR PORTFOLIOS BY BUYING HEALTHCARE AND DRUG STOCKS AND SELLING BONDS ON THE FEAR THAT THE PRESIDENT'S DEFICIT REDUCTION PACKAGE WILL UNRAVEL INDEED SINCE APRIL 21 WHEN THE PRESIDENT'S ECONOMIC STIMULUS BILL WENT DOWN IN DEFEAT THREE STOCKS WARNERLAMBERT RHONEPOULENC RORER AND SCHERINGPLOUGH HAVE HIT NEW HIGHS FOR THE YEAR AND A NUMBER OF OTHER DRUG STOCKS SUCH AS MERCK PFIZER BRISTOLMYERS SQUIBB AND ELI LILLY HAVE BOUNCED OFF THEIR LOWS OF THE YEAR SIMILARLY STOCKS OF MEDICALDEVICE MAKERS AND HEALTHCARE PROVIDERS HAVE RALLIED MEDTRONIC A PACEMAKER MANUFACTURER HIT A YEARLY LOW OF 53 1/4 LAST MONTH SINCE THEN IT HAS JUMPED 29 AND LAST WEEK IT BRIEFLY CLIMBED ABOVE 70 BEFORE RETREATING TO CLOSE 1 1/8 POINTS HIGHER AT 68 3/4 FRIDAY EVEN SIN STOCKS ARE SUDDENLY FINDING SALVATION ANHEUSERBUSCH WAS HIT BY HEAVY SELLING IN FEBRUARY AFTER MR CLINTON MENTIONED THE POSSIBILITY OF LIQUOR TAXES TO FINANCE HEALTHCARE REFORM LAST WEEK IT GOT A REPRIEVE MR CLINTON SAID BEER WOULD BE EXEMPT FROM TAXES BECAUSE IT IS A WORKING MAN'S DRINK THE STOCK OF ANHEUSERBUSCH WHICH MAKES BUDWEISER BEER BROKE ABOVE 50 LAST WEEK FOR THE FIRST TIME SINCE APRIL 21 THOUGH ADOLPH COORS SLIPPED 1/4 TO 17 1/8 FRIDAY ITS STOCK TOO IS UP MORE THAN 95 SINCE ITS FEBRUARY LOWS A FEW MONTHS AGO MR CLINTON WAS TALKING TOUGH HE HAD A NUMBER OF PROPOSALS IN HAND AND IT LOOKED LIKE THEY MIGHT SAIL THROUGH THE DEMOCRATIC CONGRESS SAYS GAIL DUDACK STOCKMARKET STRATEGIST AT SG WARBURG BUT NOW MR CLINTON'S HOLD IN CONGRESS IS DIMINISHING HIS RHETORIC IS SOFTENING AND SO THE MARKET'S FEARS ABOUT THE SCOPE OF HEALTHCARE REFORM ARE STARTING TO DISAPPEAR ANALYSTS SAY ONE OF THE REASONS INVESTORS ARE LOSING FAITH IN MR CLINTON IS THAT HE HAS BACKPEDALED ON A NUMBER OF IMPORTANT ISSUES ENERGY TAXES WERE BELIEVED TO BE THE CORNERSTONE OF MR CLINTON'S DEFICIT REDUCTION PLAN BUT NOW IT LOOKS LIKE THE BTU TAX WHICH WOULD BE BASED ON BRITISH THERMAL UNITS OR THE ENERGY CONTENT OF A FUEL WON'T BE AS ONEROUS AS EXPECTED IT'S CLEAR IT WILL BE RIDDLED WITH EXCEPTIONS SAYS MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER SIMILARLY IN FEBRUARY THE CLINTON ADMINISTRATION FLOATED WITH MUCH FANFARE THE IDEA OF IMPOSING A GOVERNMENT ROYALTY ON GOLD AND MINERALS TAKEN FROM FEDERAL LANDS PRECIOUS METALS AND MINING STOCKS PLUNGED ON THE REPORT BUT TWO MONTHS LATER MR CLINTON SCRAPPED THAT PLAN AND MINING STOCKS HAVE BEEN RALLYING EVER SINCE LAST WEEK THE GROUP GAINED ABOUT 35 THANKS IN PART TO TWO ECONOMIC REPORTS SHOWING A SURPRISING SURGE IN INFLATION LAST MONTH THE MARKET SENSES THAT THE PRESIDENT'S BARK IS BIGGER THAN HIS BITE SAYS DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS WITH EACH PASSING DAY INVESTORS ARE WONDERING WHETHER MR CLINTON'S VAUNTED PLAN TO CUT THE DEFICIT WILL ALSO BE SACRIFICED THOUGH THE DEFEAT OF THE ECONOMIC STIMULUS BILL SHOULD HAVE BEEN ENCOURAGING TO DEFICIT HAWKS BECAUSE IT MEANS LESS GOVERNMENT SPENDING INTEREST RATE SENSITIVE STOCKS SUCH AS BANKS AND UTILITIES WHICH SOARED EARLIER THIS YEAR ON THE PROSPECT OF A LOWER DEFICIT SLID ON THE NEWS JP MORGAN TUMBLED 2 TO 69 7/8 BANKERS TRUST LOST 1 1/8 TO 74 5/8 AND COMMONWEALTH EDISON LOST 7/8 TO 28 1/8 AFTER REPORTS OF THE DEFEAT FILTERED OUT FROM WASHINGTON INVESTORS STARTED DUMPING THESE STOCKS BECAUSE THEY WERE WORRIED THAT IF THE PRESIDENT LOSES HIS STRENGTH IN CONGRESS THERE WILL BE LESS DEFICIT REDUCTION AND HIGHER INTEREST RATES SAYS MR SHULMAN AFTER HITTING A RECORD HIGH OF 24768 ON APRIL 16 THE DOW JONES UTILITY AVERAGE HAS SLUMPED 57 SIMILARLY THE DOW JONES BANK GROUP HAS FALLEN FROM A PEAK OF 43894 ON APRIL 13 TO 37507 FRIDAY SOME OF THE MORE RECENT LOSSES IN THE TWO GROUPS ARE DUE TO CONCERNS ABOUT STEPPEDUP INFLATION OF COURSE BUT MR SHULMAN FRETS THAT IF THE PRESIDENT CONTINUES TO WAIVER ON HIS ECONOMIC PROGRAM THEN THE BROADER MARKET INDEXES WILL SUFFER TOO HE NOTES THAT HISTORICALLY INVESTORS HAVE NEVER LIKED WEAK PRESIDENTS WHEN PRESIDENT NIXON GOT INTO TROUBLE WITH WATERGATE STOCK INVESTORS FROWNED WHILE THE MARKET SOARED AFTER PRESIDENT BUSH SUCCEEDED IN PUSHING THE IRAQIS BACK FROM KUWAIT DURING THE GULF WAR PRESIDENT CLINTON'S WISHYWASHINESS IS ENCOURAGING FOR INDIVIDUAL GROUPS BUT I DON'T THINK IT'S A PLUS FOR THE MARKET SAYS MR SHULMAN ADDS MR METZ WALL STREET CAN LIVE WITH A DECISIVE UNAMBIGUOUS PRESIDENT EVEN THOUGH THEY DON'T LIKE HIS POLICIES BUT IT CAN'T LIVE WITH A WAFFLING UNPREDICTABLE PRESIDENT THE PRESIDENT'S CONSTANTLY SHIFTING POSITIONS UNDERMINE ONE'S ABILITY TO PURSUE A LONGERTERM INVESTMENT STRATEGY HE GROUSES WHILE MS DUDACK OF SG WARBURG AGREES THAT THE CLOUD OF POLITICAL UNCERTAINTY HAS PUT A CAP ON BROADER MARKET INDEXES SHE BELIEVES THAT ONCE THE ADMINISTRATION'S HEALTHCARE PACKAGE IS UNVEILED THE MARKET MAY BE FREE TO RALLY THE HEALTHCARE PACKAGE HAS BEEN THE GHOST THE MARKET HAS BEEN STRUGGLING WITH AND I THINK THAT ONCE THE LIGHT IS TURNED ON AND THE MARKET SEES THE GHOST THEN IT MAY REALIZE IT HASN'T AS MUCH TO FEAR SAYS MS DUDACK MEANWHILE ONE STOCK THAT HASN'T BEEN HELPED BY THE DECLINTONIZING IS STUDENT LOAN MARKETING ASSOCIATION ON FEB 18 SHARES OF SALLIE MAE TUMBLED 9 3/8 TO 47 1/4 AFTER PRESIDENT CLINTON PROPOSED DIRECT GOVERNMENT LOANS TO COLLEGE STUDENTS THAT COULD DRASTICALLY SHRINK THE AGENCY'S LENDING ACTIVITIES WHILE DRUG AND HEALTHCARE STOCKS ARE CONVINCINGLY OFF THEIR LOWS OF THE YEAR SALLIE MAE IS STILL PERILOUSLY CLOSE TO THE BOTTOM ON FRIDAY ITS STOCK ENDED AT 46 5/8 UP 5/8 MR SHULMAN SAYS WHILE LOBBYING INTERESTS HAVE CARVED EXEMPTIONS INTO MANY OF MR CLINTON'S PROGRAMS THE SALLIE MAE PROPOSAL LOOKS LIKE IT MAY STAY INTACT INDEED LAST WEEK A HOUSE PANEL APPROVED LEGISLATION THAT WOULD REPLACE THE CURRENT GUARANTEED STUDENT LOAN PROGRAM WITH A SYSTEM OF DIRECT FEDERAL LOANS BY 1997 SPOOKED BY THE PROSPECT OF HIGHER INTEREST RATES INVESTORS BATTERED BANK STOCKS FOR THE SECOND STRAIGHT DAY VOLUME ON THE BIG BOARD WAS HEAVY WITH 252141280 SHARES CHANGING HANDS DOWN FROM 289855730 SHARES THURSDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1016 TO 889 FOR THE WEEK THE DOW INDUSTRIALS EDGED UP 017 THE S&P 500 FELL 06 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX INCHED 05 LOWER BANK STOCKS WERE HIT AFTER DONALDSON LUFKIN & JENRETTE TURNED BEARISH ON THE SHARES OF MANY REGIONAL BANKS NATIONSBANK TUMBLED 2 1/8 TO 46 BANC ONE LOST 7/8 TO 51 5/8 FIRST UNION SLUMPED 1 1/2 TO 43 1/2 AND FIRST BANK SYSTEM EASED 7/8 TO 28 7/8 STOCKS OF MONEYCENTER BANKS WERE ALSO SCARRED CHASE MANHATTAN BANK CLOSED DOWN 7/8 TO 29 BANKAMERICA SLIPPED 1/8 TO 45 5/8 CITICORP FELL 3/4 TO 26 3/4 CHEMICAL BANKING DROPPED 5/8 TO 36 5/8 AND JP MORGAN SLID 1 TO 65 3/8 ROYAL DUTCH PETROLEUM INCHED UP 1/4 TO 90 3/4 ON COMPOSITE VOLUME OF 452 MILLION SHARES ANALYSTS ATTRIBUTED THE HEAVY ACTIVITY TO DIVIDEND CAPTURE TRADING STRATEGIES THE COMPANY IS SET TO PAY A DIVIDEND JUNE 4 TO HOLDERS OF RECORD MAY 20 EMPLOYEE BENEFIT PLANS ADDED 1 TO 9 1/8 THE MINNEAPOLIS CONCERN SAID FIRSTQUARTER PROFIT ROSE TO SEVEN CENTS A SHARE FROM FOUR CENTS A YEAR AGO CENTEX SANK 1 5/8 TO 29 1/4 KIDDER PEABODY CUT ITS INVESTMENT RATING ON THE DALLAS HOUSINGCONSTRUCTION CONCERN TO UNDERPERFORM FROM HOLD TANDEM COMPUTERS GAINED 1 3/4 TO 13 FURMAN SELZ INITIATED COVERAGE OF THE STOCK WITH A BUY RATING AND ADDED IT TO ITS RECOMMENDED LIST ON THE AMERICAN STOCK EXCHANGE ANDREA ELECTRONICS SURGED 7 1/2 TO 66 AFTER DECLARING A 5FOR1 STOCK SPLIT A DAY EARLIER DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9305170092 930517 SPORTS ALAMODOME OPENS LOOKING LIKE A WINNER BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL SAN ANTONIO WHEN CITY LEADERS SET OUT TO BUILD A 180 MILLION DOMED STADIUM WITHOUT A CONTRACT WITH A PROFESSIONAL SPORTS TEAM CRITICS CHARGED THAT THE VENTURE HAD ABOUT AS MUCH CHANCE OF SUCCEEDING AS THE DEFENSE OF THE ALAMO BUT BACKERS LED BY THENMAYOR HENRY CISNEROS PUSHED THE PLAN THROUGH ARGUING THAT THE NEW FACILITY WOULD BE FLEXIBLE ENOUGH TO ATTRACT BIG CONVENTIONS AND OTHER EVENTS AND THAT IT WOULD INFUSE THE AREA'S ECONOMY WITH NEW MONEY AND GUESS WHAT AGAINST ALL ODDS IT LOOKS AS IF THE BACKERS WERE RIGHT THE GLEAMING NEW ALAMODOME WHICH OPENED SATURDAY PROMISES TO BE MORE THAN AN ARCHITECTURAL ANOMALY WITH ITS RECTANGULAR SHAPE AND SLOPING STEEL ROOF HELD UP BY YELLOW CABLES BECAUSE LOCAL RESIDENTS AGREED TO PAY FOR IT UP FRONT THROUGH A TEMPORARY SALES TAX THE ALAMODOME WILL BE THE FIRST PUBLICLY FUNDED DOME IN THE NATION TO OPEN PRACTICALLY DEBTFREE EXPERTS SAY AND ALTHOUGH OFFICIALS DID EVENTUALLY ROPE THE SAN ANTONIO SPURS BASKETBALL TEAM INTO A 10YEAR CONTRACT THAT WAS A BONUS BECAUSE THEY HAVE BEEN SO SUCCESSFUL IN PREBOOKING THE FACILITY WITH NONSPORTING EVENTS CITY OFFICIALS PREDICT THE STADIUM WILL BREAK EVEN BY ITS THIRD YEAR IT HAS THE POTENTIAL TO BE A VERY SPECIAL FACILITY SAYS RICK HORROW A MIAMI SPORTS ATTORNEY AND CONSULTANT ON STADIUMS WHO ADDS THAT THE ALAMODOME WAS DEVELOPED AT A FORTUITOUS TIME WHEN IMPROVING STADIUM TECHNOLOGY ALLOWS FOR MAXIMUM FLEXIBILITY THE ALAMODOME'S BRIGHT OUTLOOK CONTRASTS SHARPLY WITH THOSE OF A NUMBER OF OTHER PUBLICLY FUNDED STADIUMS AROUND THE COUNTRY SOME SUCH AS THE 133 MILLION SUNCOAST DOME IN ST PETERSBURG FLA STUMBLED BY RELYING SOLELY ON THE FIELD OF DREAMS THEORY BUILD IT AND THEY WILL COME CONSTRUCTED IN THE FALSE HOPE OF ATTRACTING A MAJOR LEAGUE BASEBALL TEAM THE SUNCOAST DOME HAS BEEN MOSTLY EMPTY SINCE IT OPENED IN 1990 AND IT LOSES OVER 5 MILLION A YEAR OTHERS HAVE PROVED MUCH MORE EXPENSIVE THAN PLANNED TORONTO'S SKYDOME WHICH WAS ORIGINALLY SLATED TO COST 1925 MILLION ENDED UP WITH A 4715 MILLION PRICE TAG EVEN THE HEAVILY BOOKED NEW ORLEANS SUPERDOME COST TAXPAYERS 169 MILLION THREE TIMES THE INITIAL BUDGET AND HAS BEEN RUNNING CONSISTENT DEFICITS SINCE IT OPENED IN 1975 I DON'T THINK THERE'S A STADIUM IN THE WORLD THAT RUNS A PROFIT SAYS DAVID WIEDLER VICE PRESIDENT FINANCE AT THE SUPERDOME ALL THAT'S ABOUT TO CHANGE CLAIMS ALEX BRISENO SAN ANTONIO'S CITY MANAGER THE WAY HE FIGURES IT THE ALAMODOME WILL GENERATE REVENUE OF ABOUT 8 MILLION IN ITS FIRST FULL YEAR OF OPERATION WITH A THIRD COMING FROM CONCESSIONS AND THE BALANCE FROM LUXURY SEATS PARKING CATERING STADIUM RENT AND OTHER SOURCES ABOUT A QUARTER OF THE REVENUE WILL RESULT FROM STADIUM TRAFFIC GENERATED BY A 10YEAR CONTRACT WITH THE POPULAR SAN ANTONIO SPURS WHO ARE MOVING FROM A SMALLER ADJACENT ARENA AND WILL PLAY ABOUT 45 GAMES EACH SEASON IN 1990 FORMER SPURS OWNER BJ MCCOMBS SIGNED THE CONTRACT MOVING THE TEAM TO THE ALAMODOME SINCE THEN LOCAL INVESTORS HAVE BOUGHT THE SPURS TO ENSURE THAT THE TEAM WILL STAY IN TOWN ALREADY ALL 32 CORPORATE SUITES A MAJOR MONEYMAKER FOR THE STADIUM HAVE BEEN SOLD FOR THE NEXT FEW SEASONS MCCARTNEY CONCERT BUT THE ALAMODOME'S REAL ACE IN THE HOLE IS THE NONBASKETBALL USE ALREADY THE STADIUM HAS 81 DAYS OF CONVENTIONS CONCERTS TRADE SHOWS AND MISCELLANEOUS SPORTS EVENTS BOOKED IN ITS FIRST YEAR INCLUDING A PAUL MCCARTNEY CONCERT NFL PRESEASON GAMES AN OLYMPIC FESTIVAL AND A BOXING MATCH BETWEEN JULIO CESAR CHAVEZ AND PERNELL WHITAKER ONE CURIOSITY WILL BE AN AMERICAN BUS ASSOCIATION CONVENTION WHICH PLANS TO PULL 600 BUSES INTO THE FACILITY IN 1997 THE ALAMODOME WILL HOST A CONVENTION OF 50000 MEMBERS OF THE CHURCH OF THE NAZARENE THE STADIUM A SHORT DISTANCE FROM THE HISTORIC ALAMO IS BETTER SUITED THAN MANY STADIUMS TO ATTRACT LARGE OUTOFTOWN GROUPS BECAUSE OF ITS CONVENTIONFRIENDLY STRUCTURE FIRST IT ISN'T A DOME AT ALL BUT RATHER A SLOPED ROOF SUSPENDED LIKE A BRIDGE FROM FOUR ENORMOUS MASTS THE ONEOFAKIND ROOF WAS CONCEIVED AT FIRST FOR COST REASONS OLDER STEELANDCONCRETE DOMES ARE EXPENSIVE AND MORE MODERATE AIRPRESSURIZED DOMES HAVE A NASTY REPUTATION WITH INSURERS FOR DEFLATING BUT THE NEW DESIGN ALSO PROVIDES A MORE INTIMATE ENVIRONMENT FOR GROUPS THE DESIGN WAS PANNED WHEN IT WAS UNVEILED BY THE ARCHITECTURAL TEAM INCLUDING LOCAL FIRM MARMON MOCK AND THE LARGE FIRM OF HELLMUTH OBATA & KASSABAUM AT FIRST I THOUGHT IT WAS STRANGE SAYS NELSON WOLFF THE CURRENT MAYOR BUT IT GROWS ON YOU INSIDE THE STADIUM HAS 160000 SQUARE FEET AND 65000 SEATS ALL WITH COLUMNFREE VIEWS IT ALSO HAS THE NATION'S ONLY CONTINUOUS GRID OF ELECTRIC WIRING FOR TRADE SHOWS AND THE LARGEST SET OF MOVABLE RETRACTABLE SEATS AND THE ALAMODOME HAS ACHIEVED POTTY PARITY WITH TWICE AS MANY RESTROOMS FOR WOMEN AS MEN DOWNSTAIRS IS A SUITE OF CONVENTION ROOMS IN THE SPORTS AREA HEAVY CURTAINS ARE AVAILABLE TO MAKE THE STADIUM SEEM SMALLER FOR BASKETBALL OR CONVENTION EVENTS THE ALAMODOME HAS TWO ICE RINKS ONE FOR PRACTICE AND ONE FOR EXHIBITION OR PLAY AND THE ONLY MAJOR STADIUM SPORT IT DOESN'T ACCOMMODATE IS BASEBALL WHICH WOULD REQUIRE A HIGHER MORE EXPENSIVE ROOF ON THE COST SIDE THE STADIUM WILL BE HELPED ENORMOUSLY BY ITS NEARTOTAL LACK OF DEBT DUBBED BY LOCALS THE PAY AS YOU GO STADIUM THE ALAMODOME WAS FUNDED BY A FIVEYEAR HALFPERCENT SALES TAX THAT WAS APPROVED BY BEXAR COUNTY VOTERS IN 1989 THE TAX WAS ACTUALLY LEVIED BY THE LOCAL TRANSIT AUTHORITY WHICH OWNS THE STRUCTURE WHEN THE TAX EXPIRES IN MARCH THE STADIUM WILL HAVE BEEN PAID FOR WITH A GENEROUS FUND FOR FUTURE IMPROVEMENTS THEY DID TWO THINGS THAT WERE ABSOLUTELY BRILLIANT SAYS MARC GANIS PRESIDENT OF SPORTSCORP LTD A CHICAGOBASED SPORTS FACILITY DEVELOPMENT CONCERN THEY PAID FOR IT IN FIVE YEARS SO IT WILL BE DEBTFREE FOR FUTURE GENERATIONS AND THEY DIDN'T IMPOSE THE TAXES THEMSELVES AS ST PETERSBURG DID THEY TOOK IT TO A VOTE IN ADDITION TO BANKROLLING A PROFITABLE FACILITY VOTERS HOPE THE STADIUM WILL BOOST THE GENERAL ECONOMY BY SWELLING THE CITY'S ALREADYPROSPEROUS 21 BILLION TOURIST TRADE A STUDY FOR THE LOCAL CHAMBER OF COMMERCE BY M RAY PERRYMAN CONSULTANTS INC PREDICTED DIRECT TOURIST REVENUES WOULD BALLOON BY 63 MILLION IN 1993 ALONE BUT SOME WORRY THE STADIUM WILL BE TOO SUCCESSFUL WITH A SEA WORLD AQUARIUM A NEW THEME PARK RIVERWALK'S SHOPS AND RESTAURANTS AS WELL AS THE ALAMO LOCAL HOTELS ARE ALREADY CROWDED DURING HIGH SEASON OTHER CRITICS CONTEND THAT PUBLICLY FUNDED STADIUMS ARE AN INEFFICIENT WAY TO BOOST LOCAL ECONOMIES OR AMOUNT TO A SUBSIDY FOR SPECIAL INTERESTS PUBLIC MONEY SHOULD BE USED FOR PUBLIC GOOD PROTESTS FATHER ROSENDO URRABAZO WHO OPERATES A SOCIAL SERVICE GROUP WITH AN ANNUAL BUDGET THAT IS ONLY A FRACTION OF WHAT THE STADIUM COST TO BUILD 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 9305170091 930517 BUSINESS BRIEF PPG INDUSTRIES INC WORKERS STRIKE TWO PLANTS AFTER ENDING PACT EXTENSION PPG INDUSTRIES INC BASED IN PITTSBURGH SAID WORKERS AT ITS CREIGHTON PA AND FORD CITY PA PLANTS TERMINATED CONTRACT EXTENSIONS THURSDAY NIGHT AND WENT ON STRIKE THE MOVES FOLLOW A SIMILAR ACTION BY OTHER WORKERS REPRESENTED BY THE ALUMINUM BRICK AND GLASS WORKERS INTERNATIONAL UNION ON MAY 8 AT THE COMPANY'S GREENSBURG PA PLANT PPG SAID THE STRIKE INVOLVES 270 WORKERS AT THE CREIGHTON PLANT WHICH MAKES ORIGINAL EQUIPMENT AUTOMOTIVE GLASS AND 300 WORKERS AT THE FORD CITY PLANT WHICH MAKES COMMERCIAL GLASS PRODUCTS IT ALSO INCLUDES 260 WORKERS IN GREENSBURG THE COMPANY SAID PPG WOULD ONLY SAY THAT ISSUES INVOLVED INCLUDE HEALTH CARE BENEFITS WAGES AND PENSIONS UNION OFFICIALS HAVE BEEN UNAVAILABLE FOR COMMENT 9305170090 930517 BUSINESS BRIEF OMRON CORP UNCONSOLIDATED PRETAX PROFIT PLUNGED 48 IN FISCAL YEAR OMRON CORP REPORTED A 48 PLUNGE IN UNCONSOLIDATED PRETAX PROFIT IN THE YEAR ENDED MARCH 31 AS SALES FELL REFLECTING WEAK GLOBAL ECONOMIC CONDITIONS THE MAJOR JAPANESE MAKER OF SUCH CONTROL PARTS AS SWITCHES AND RELAYS SAID PROFIT FELL TO 706 BILLION YEN 631 MILLION FROM 135 BILLION YEN A YEAR EARLIER SALES FELL 63 TO 36421 BILLION YEN FROM 38884 BILLION YEN OMRON SAID DESPITE SHARP GROWTH IN GOVERNMENT OUTLAYS THE YEN'S SHARP APPRECIATION AND CONTINUING STRUCTURAL ECONOMIC PROBLEMS MAKE THE OUTLOOK FOR A STRONG ECONOMIC RECOVERY DURING THE CURRENT FISCAL YEAR BLEAK THE COMPANY EXPECTS ONLY MARGINAL GAINS FOR SALES AND PRETAX PROFIT DURING THE YEAR 9305170089 930517 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR FLAGGING ECONOMIES OVERSEAS CONTINUE TO HAMPER US EXPORT GROWTH AND FEED THE NATION'S WIDENING TRADE DEFICIT US MANUFACTURERS ARE FINDING IT INCREASINGLY DIFFICULT TO SELL THEIR MERCHANDISE ABROAD WHEN MAJOR TRADING PARTNERS SUCH AS JAPAN AND EUROPE IN RECESSION SLUGGISH EXPORTS CONTRIBUTED TO THE NATION'S TRADE DEFICIT IN JANUARY AND FEBRUARY AND PROBABLY DID SO AGAIN IN MARCH SAID SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS WE'RE FEELING THE EFFECTS OF THE WORSENING ECONOMIOC RECESSION IN GERMANY AND THE REST OF EUROPE SAID MR SOHN ALSO JAPAN IS TRYING TO GET OUT OF ITS WORST ECONOMIC RECESSION IN THE POSTWAR PERIOD HE SAID MR SOHN PREDICTED A COMMERCIAL DEPARTMENT REPORT TO BE RELEASED THIS WEEK WILL SHOW THE US TRADE GAP GREW TO 76 BILLION IN MARCH FROM 72 BILLION IN FEBRUARY AND THE DEFICIT IS EXPECTED TO WORSEN AS THE YEAR PROGRESSES MAKING IT LIKELY THAT 1992'S 843 BILLION TRADE DEFICIT WILL BE SURPASSED MR SOHN SAID THE STRENGTHENING OF THE YEN IN TIME SHOULD HELP US EXPORTS TO JAPAN BY MAKING THEM MORE AFFORDABLE RELATIVE TO JAPANESE PRODUCTS BUT THAT MAY TAKE A WHILE BECAUSE OF THE LONG LAG BETWEEN CHANGES IN VALUE OF CURRENCY AND THE IMPACT ON IMPORTS AND EXPORTS HE SAID 9305170088 930517 WHO'S NEWS FMR CORP FMR CORP BOSTON ROGER SERVISON FORMERLY PRESIDENT OF RETAIL MARKETING WAS NAMED HEAD OF THE FIDELITY INVESTMENTS UNIT'S BROKERAGE SERVICES BUSINESS MR SERVISON 48 YEARS OLD WHO HELPED TO DEVELOP FIDELITY'S BROKERAGE BUSINESS IN THE EARLY 1980S SUCCEEDS THOMAS E MEADE 52 WHO RESIGNED AS PART OF A RESTRUCTURING THE REORGANIZATION CONSOLIDATED FIDELITY'S MUTUAL FUNDS AND BROKERAGE SERVICES IN ORDER TO BRING TOGETHER PIECES OF THE COMPANY TO MAKE US MORE RESPONSIVE TO CUSTOMERS AND STREAMLINE OUR BUSINESS SAID AN FMR SPOKESWOMAN MR MEADE COULDN'T BE REACHED FOR COMMENT FMR SAID MARK A PETERSON 52 EXECUTIVE VICE PRESIDENT OF FMR WILL OVERSEE ALL OF FIDELITY'S RETAIL OPERATIONS INCLUDING THOSE HEADED BY MR SERVISON 9305170087 930517 WHO'S NEWS CHYRON CORP CHYRON CORP MELVILLE NY PAUL M YARMOLICH WAS NAMED VICE PRESIDENT OF ENGINEERING FOR THE MAKER OF VIDEOPRODUCTION EQUIPMENT MR YARMOLICH 34 YEARS OLD HAD BEEN DIRECTOR OF ENGINEERING AT GERBER SYSTEMS CORP HE SUCCEEDS ROY AGNETA WHO'S RESIGNING 9305170086 930517 BUSINESS BRIEF DRESDNER BANK AG OPERATING PROFIT ROSE 15 IN FIRST FOUR MONTHS OF '93 DRESDNER BANK AG GERMANY'S SECONDLARGEST BANKING GROUP SAID FULL OPERATING PROFIT IN THE FIRST FOUR MONTHS OF THE YEAR ROSE 15 FROM A YEAR EARLIER DEPARTING DRESDNER BANK CHAIRMAN WOLFGANG ROELLER DIDN'T PROVIDE A PRECISE FIGURE IN A SPEECH TO SHAREHOLDERS GERMAN BANKS TRADITIONALLY HAVE USED ARITHMETIC COMPARISON FOR INTERIM RESULTS SAYING IT MORE ACCURATELY REFLECTS BUSINESS TRENDS BASED ON THESE FIGURES THE BANK WILL POST GOOD FULLYEAR RESULTS MR ROELLER SAID THE STRONG GROWTH IN THE FIRST FOUR MONTHS STEMMED FROM COMMISSION INCOME AND CONSIDERABLE GROWTH IN THE BANK'S OWNACCOUNT TRADING HE SAID COMMISSION INCOME ROSE MORE THAN 20 WHILE NET INTEREST INCOME WAS FAIRLY STEADY 9305170085 930517 TECHNOLOGY & HEALTH ADVANCED PROCEDURE FOR GENE THERAPY PERFORMED ON INFANTS SAN FRANCISCO GENETHERAPY EFFORTS TO TREAT IMMUNESYSTEM DISEASES ADVANCED OVER THE WEEKEND WITH A NEW PROCEDURE TO HELP NEWBORNS BY ALTERING BLOOD CELLS FROM THEIR UMBILICAL CORDS THE NEW PROCEDURE REPRESENTS A GAIN FROM PREVIOUS ATTEMPTS AT GENE THERAPY OF A GENETIC DISEASE IN WHICH DEFICIENT WHITE BLOOD CELLS WERE EXTRACTED FROM CHILDREN WITH THE DISEASE GENETICALLY MADE CORRECT AND THEN RETURNED TO THE BODY IN REPEATED INFUSIONS USING THE UMBILICAL CORD SCIENTISTS HOPE TO GET CLOSER TO THE SOURCE OF GENETIC DISEASES BY ALTERING STEM CELLS WHICH ARE IN THE BONE MARROW AND GIVE RISE TO ALL THE OTHER CELLS OF THE BLOOD SYSTEM IN THE LATEST PROCEDURE THE CELLS OF TWO NEWBORNS ONE IN LOS ANGELES AND THE OTHER IN SAN FRANCISCO WERE EXTRACTED FROM THE UMBILICAL CORDS FOR INSERTION OF A MISSING GENE THAT WILL BOOST THEIR IMMUNE SYSTEMS SAID THE UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO THE UNIVERSITY SAID THE PROCEDURE IS THE FIRST EVER USING THE UMBILICAL CORD AND IS BEING CARRIED OUT IN COLLABORATION WITH THE NATIONAL INSTITUTES OF HEALTH THE UNIVERSITY IS DOING THE PROCEDURE WITH THE CHILDREN'S HOSPITAL OF LOS ANGELES WHICH HAS THE SOPHISTICATED CELLSEPARATION EQUIPMENT NECESSARY FOR THE PROCEDURE THE LOS ANGELES BABY BORN LAST TUESDAY HAS RECEIVED ITS ENGINEERED CELLS AND THE SAN FRANCISCO BABY IS EXPECTED TO RECEIVE ITS CELLS IN THE NEXT TWO DAYS BOTH SUFFER FROM SEVERE COMBINED IMMUNODEFICIENCY A RARE GENETIC DISORDER WHICH RENDERS THE BODY TOTALLY HELPLESS AGAINST INFECTIOUS DISEASES 9305170084 930517 WORLD MARKETS TAIPEI STOCKS START PAYING OFF AS CHINA PLAYS' AS THE TWO COUNTRIES' ECONOMIC LINKS EXPAND BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN AS THE ECONOMIES OF TAIWAN AND CHINA BECOME EVER MORE CLOSELY INTERTWINED STOCKS IN TAIWAN HAVE FINALLY BEGUN TO CATCH UP WITH THEIR HYPED POTENTIAL AS CHINA PLAYS FOR THE PAST YEAR AS TAIWAN'S TRADE AND INVESTMENT TIES WITH CHINA HAVE EXPANDED AND GAINED NEW LEGITIMACY FROM BOTH GOVERNMENTS MANY LOCAL STOCKBROKERS HAVE USED EVERY OPPORTUNITY TO PUMP UP THE SHARES THAT SUPPOSEDLY WILL BENEFIT FOR EXAMPLE ANY HINT OF A THAW IN RELATIONS BETWEEN TAIPEI AND BEIJING HAS BEEN USED TO PUSH SHIPPING STOCKS EVEN THOUGH DIRECT TRANSPORTATION LINKS WITH THE CHINESE MAINLAND COULD BE YEARS AWAY BUT AN INCREASING NUMBER OF THE 240 COMPANIES LISTED ON THE TAIWAN STOCK EXCHANGE DO OFFER SERIOUS POTENTIAL FOR LONGTERM INVESTORS ATTRACTED BY CHINA'S ECONOMIC BOOM MANY COMPANIES LISTED IN TAIWAN HAVE MADE INVESTMENTS IN CHINA ALBEIT SMALL AND MORE PROJECTS ARE ON THE DRAWING BOARD A FEW INVESTMENTS ALREADY ARE HAVING A POSITIVE EFFECT ON THE LISTED COMPANIES' BALANCE SHEETS MORE SIGNIFICANTLY COMPANIES IN INDUSTRIES RANGING WIDELY FROM PETROCHEMICALS TO ELECTRONICS ARE CASHING IN ON EXPORT ORDERS FROM CHINESE CUSTOMERS FOR THEM THE MAINLAND MARKET HAS EMERGED AS THE TICKET TO CONTINUED PROSPERITY EVERYBODY JUMPS ON THESE CHINA PLAYS WITHOUT REALLY LOOKING AT WHAT A CHINA PLAY IS RICHARD WERTHEIMER A BROKER WITH BARING SECURITIES TAIWAN LTD SAID WE LOOK AT MORE REALISTIC SITUATIONS COMPANIES THAT HAVE MORE SIGNIFICANT EARNINGS AND OPERATING INCOME FROM CHINA TAIWAN SHARES STILL DON'T OFFER THE EXPOSURE TO THE CHINESE ECONOMY THAT CAN BE FOUND IN MANY HONG KONG STOCKS OR CLASS B SHARES AVAILABLE TO FOREIGN INVESTORS IN THE SHENZHEN AND SHANGHAI MARKETS SOME LISTED COMPANIES IN HONG KONG DRAW 50 OR MORE OF THEIR EARNINGS FROM CHINESE OPERATIONS BY CONTRAST ONLY A FEW LISTED TAIWAN COMPANIES ARE BRINGING HOME APPRECIABLE PROFITS FROM INVESTMENTS IN CHINA THUS FOR SOME INVESTORS THE CHINA PLAYS IN TAIWAN REMAIN A BET THAT WON'T BEAR FRUIT UNTIL THE GOVERNMENT LOOSENS ITS BAN ON DIRECT INVESTMENTS IN CHINA AND REMOVES THE BARRIER TO DIRECT SHIPPING LINKS WHEN LINKS ARE IN PLACE AND INVESTMENT IS GUARANTEED TAIWAN WOULD BE IN MY BOOK AS GOOD IF NOT BETTER A PLACE TO BE LOOKING FOR CHINA PLAYS THAN EVEN HONG KONG HUGH PEYMAN A STRATEGIST WITH KLEINWORT BENSON SECURITIES ASIA LTD SAID THE REASON IS THAT TAIWAN UNLIKE HONG KONG HAS LARGE COMPANIES THAT HAVE DEPTH AND BREADTH AND THEY HAVE THE PERSONNEL WHO WILL FIND IT MUCH EASIER TO TAKE BIG MANUFACTURING AND CONSUMERGOODS COMPANIES THROUGH THE WHOLE OF CHINA BUT THIS FUTURE MAY BE APPROACHING MORE RAPIDLY THAN MANY ANALYSTS EXPECT WHETHER GOVERNMENT RESTRICTIONS ARE RELAXED OR NOT IN RECENT YEARS THE ECONOMIES OF TAIWAN AND CHINA HAVE BEEN DRAWN TOGETHER FASTER THAN ANYONE COULD HAVE PREDICTED INDIRECT TRADE THROUGH HONG KONG LAST YEAR GREW 28 TO 741 BILLION FROM 579 BILLION IN 1990 AND IN THE FIRST THREE MONTHS OF THIS YEAR TRADE GREW 30 TO 117 BILLION INDIRECT TAIWANESE INVESTMENTS IN CHINA NOW MAY EXCEED 10 BILLION IN THE WAKE OF TALKS BETWEEN BEIJING AND TAIPEI LAST MONTH IN SINGAPORE WHICH SET AN AGENDA FOR DISCUSSIONS OF BILATERAL ISSUES TAIWAN BUSINESS PEOPLE ARE OPERATING UNDER THE ASSUMPTION THAT CROSSSTRAIT ECONOMIC TIES CAN ONLY GROW THE NUMBER OF LISTED COMPANIES INVESTING IN CHINA OR PLANNING PROJECTS HAS SOARED IN THE PAST YEAR TO AT LEAST 40 FROM 12 THOUGH MOST PROJECTS INVOLVE INVESTMENTS SMALLER THAN 20 MILLION AND AS LABORINTENSIVE INDUSTRIES IN TAIWAN HAVE MOVED EN MASSE TO CHINA THEY HAVE RETAINED TIES TO SUPPLIERS BACK HOME MOREOVER THE MANUFACTURERS' ORDER BOOKS HAVE GROWN BECAUSE OF ORDERS FROM OTHER FOREIGNINVESTED COMPANIES AND CHINESE FACTORIES PETROCHEMICAL AND SYNTHETICFIBER COMPANIES WHICH HAVE BUILT ONE OF THE WORLD'S LARGEST PRODUCTION BASES IN TAIWAN HAVE WEATHERED THE RECENT GLOBAL ECONOMIC DOWNTURN LARGELY BECAUSE OF THE CHINA MARKET MAKERS OF AUTO PARTS ELECTRONICS PRODUCTS AND MACHINERY ALL HAVE RECEIVED A SIMILAR BOOST MANY EXPORTERS AREN'T VIEWED AS CHINA PLAYS BUT MAY OFFER THE BEST ACCESS TO CHINA ANALYSTS SAID AND WITH SALES TO CHINA ONLY LIKELY TO GROW TAIWAN WILL OFFER UNPARALLELED ACCESS BECAUSE OF ITS WELLDEVELOPED INDUSTRIAL INFRASTRUCTURE TOKYO STOCKS RETREATED FRIDAY FOR THE FOURTH CONSECUTIVE SESSION AS INVESTORS TOOK PROFITS AHEAD OF THE WEEKEND AND A FLOOD OF CORPORATE EARNINGS REPORTS AND FORECASTS THIS WEEK LONDON SHARES RANGED FROM MIXED TO WEAKER IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 8242 POINTS THURSDAY FELL 5863 TO 2047415 ON MONDAY THE NIKKEI ROSE 12197 POINTS TO CLOSE THE MORNING SESSION AT 2059612 IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EASED 23 POINTS TO 28470 THE FT 30STOCK INDEX ROSE 29 POINTS TO 22184 VOLUME WAS 6197 MILLION SHARES COMPARED WITH 7976 MILLION SHARES A DAY EARLIER TRADING WAS LACKLUSTER AHEAD OF MORE CORPORATE EARNINGS REPORTS THIS WEEK IN FRANKFURT SHARE PRICES CLOSED MOSTLY LOWER IN A CORRECTION TRIGGERED BY THE GERMAN CENTRAL BANK CHIEF'S BEARISH COMMENTS THURSDAY ABOUT INTERESTRATE REDUCTIONS THE DAX 30STOCK INDEX FELL 528 POINTS TO 163451 BUT STILL REGISTERED A GAIN FOR THE WEEK OF 2224 POINTS PARIS STOCKS FELL SHARPLY ON POOR FIRSTQUARTER CORPORATE SALES REPORTS AND MORE BEARISH NEWS ON FRANCE'S ECONOMY MADRID SHARES RALLIED FOR THE SECOND DAY IN A ROW FOLLOWING THE SPANISH PESETA'S DEVALUATION AND A CUT IN SPAIN'S BENCHMARK INTEREST RATE STOCKHOLM SHARES RALLIED ON HOPES FOR LOWER RATES HONG KONG STOCKS SLUMPED ON PROFITTAKING MANILA SHARES ROSE IN A TECHNICAL REBOUND AS SENTIMENT WAS BOOSTED BY A WORLD BANK REPORT CONFIRMING THE PHILIPPINES HAS POTENTIAL FOR MEDIUMTERM ACCELERATED GROWTH 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 9305170083 930517 BIGGER PAYMENT THAN EXPECTED LOOMS FOR GPA IN 2 MONTHS IT MUST PAY CREDITORS 100 MILLION MORE THAN BELIEVED BY WALL STREET JOURNAL REPORTERS STEVEN LIPIN AND AMAL KUMAR NAJ IN NEW YORK AND JEFF COLE IN LOS ANGELES GPA GROUP PLC HAS TO MAKE 100 MILLION MORE IN PAYMENTS TO CREDITORS IN THE NEXT TWO MONTHS THAN ORIGINALLY BELIEVED UNDERSCORING WHY MEMBERS OF THE AIRCRAFT INDUSTRY WITH A VESTED INTEREST IN THE COMPANY'S SURVIVAL ARE COMING TO ITS RESCUE THE TENTATIVE AGREEMENT LAST WEEK BY GE CAPITAL CORP TO PAY 135 BILLION FOR 45 GPA AIRCRAFT HELPED TO EASE THE INDUSTRY'S NERVOUSNESS OVER THE TEETERING FINANCES OF THE IRISH AIRCRAFTLEASING GIANT BUT THE DRAMA WILL CONTINUE THIS WEEK BECAUSE GPA STILL NEEDS BANK CREDITORS AND INVESTORS TO AGREE TO A RESCUE PACKAGE BY TOMORROW THE DEADLINE FOR 50 MILLION IN MATURING DEBT TO BE PAID OFF GPA'S BOARD IS MEETING TODAY TO DETERMINE IF THERE IS ENOUGH SUPPORT TO MAKE THE PAYMENTS THE COMING PAYMENT IS PART OF WHAT HAD BEEN BELIEVED BY ANALYSTS TO BE A TOTAL OF 200 MILLION IN INTEREST AND PRINCIPAL OBLIGATIONS COMING DUE BY THE END OF JUNE BUT NEW SECURITIES AND EXCHANGE COMMISSION FILINGS BY GPA ON FRIDAY SHOW THAT 300 MILLION COMES DUE BY THEN AND OVER 1 BILLION COMES DUE IN TWO YEARS BECAUSE GPA ISN'T PUBLICLY TRADED IT ISN'T OBLIGATED TO MAKE FULL FINANCIAL DISCLOSURES IN THE US FRIDAY'S FILING WAS MADE UP OF INFORMATION GIVEN TO UNSECURED CREDITORS THE PREVIOUS DAY AT A MEETING IN THE US THE FILINGS ALSO SHOW THAT BOEING CO HAS ALREADY DONE ITS SHARE TO KEEP GPA ALOFT IN ADDITION TO CANCELING BILLIONS IN ORDERS BOEING HAS ALSO COMMITTED NEARLY 570 MILLION IN PREVIOUSLY UNDISCLOSED BRIDGE LOANS TO GPA NEARLY HALF OF GPA'S 457 AIRCRAFT COMES FROM THE SEATTLEBASED MANUFACTURER BUT THE STAKES ARE HIGH AS WELL FOR GE CAPITAL AND ITS PARENT GENERAL ELECTRIC CO WHILE THE DEAL TO PURCHASE 45 PLANES IS A SHREWD MOVE BECAUSE IT GIVES GE CAPITAL AN OPTION TO BUY GPA IF THE COMPANY'S FORTUNES IMPROVE SOME AVIATION INDUSTRY EXPERTS BELIEVE THE MOVE IS PRIMARILY A DEFENSIVE ONE GE CAPITAL'S POLARIS AIRCRAFT LEASING DIVISION HAS A 500PLANE FLEET THAT COULD LOSE VALUE IF GPA IS LIQUIDATED IN A BANKRUPTCY FILING TO PAY CREDITORS THE DRIVING FORCE I DON'T BELIEVE IS THE FINANCIAL BENEFIT TO GE SAID JORDAN GREENE PRESIDENT OF AVMARK SERVICES LTD A MIAMI FIRM SPECIALIZING IN AVIATION APPRAISALS GE HAS A LOT AT RISK THEY'RE TRYING TO PROTECT THEMSELVES BY THEIR INVESTMENT IN GPA GE CAPITAL OFFICIALS DECLINED TO COMMENT WITH THE AIRLINE INDUSTRY IN A NOSE DIVE IN RECENT YEARS LEASE RATES HAVE FALLEN 20 TO 30 SINCE 1990 A LIQUIDATION OF GPA ASSETS WHICH INCLUDE ITS ONGOING LEASES AND INVENTORY OF AIRCRAFT COULD DEPRESS LEASE RATES FURTHER DECLINING VALUES BOTH IN THE COST OF USED AIRCRAFT AND IN LEASE RATES WOULD ALSO HURT BANKS AND OTHER INSTITUTIONS THAT MADE LOANS TO LESSORS AND OTHERS IN THE AIRLINE INDUSTRY GPA'S DOCUMENTS SHOW THAT IT HAS A LOT OF UNUSED AIRCRAFT BECAUSE IT LOST 128 MILLION IN REVENUE IN THE YEAR ENDING MARCH 31 DUE TO AIRCRAFT ON THE GROUND NOT EARNING MONEY THIS YEAR THE COMPANY HAS TO FIND HOMES FOR 38 LEASES THAT EXPIRE OPERATING PROFIT SLID 30 TO 294 MILLION FOR FISCAL 1993 WHICH ENDED MARCH 31 GE'S ACQUISITION OF 45 AIRCRAFT IS ALSO A WAY TO MODERNIZE ITS FLEET GE'S POLARIS UNIT OWNS MOSTLY OLDER AIRCRAFT THAT ARE PLACED ALMOST EXCLUSIVELY WITHIN THE US GPA MEANWHILE HAS A MUCH MORE MODERN FLEET AND ITS CUSTOMERS ARE SPREAD THROUGHOUT THE WORLD BUT WHILE GE CAPITAL LIKES TO POINT OUT HOW INDEPENDENT IT IS FROM ITS PARENT GE'S INTEREST IN GPA REFLECTS THE FAIRFIELD CONN COMPANY'S STRATEGIC MOVE TO BOLSTER ITS AIRCRAFT ENGINE DIVISION AS WELL AS TO EXPAND ITS AIRCRAFT LEASING BUSINESS VERTICAL INTEGRATION THE COMPANY IS BECOMING MORE AND MORE VERTICALLY INTEGRATED SAYS NICHOLAS HEYMANN OF NATWEST SECURITIES THE COMMERCIAL AEROSPACE INDUSTRY IS CONSOLIDATING AROUND THE ABILITY TO FINANCE PEOPLE FAMILIAR WITH THE TALKS BETWEEN GE AND GPA SAY THAT GE IS BANKING ON THE POSSIBILITY THAT THE FINANCIALLY TROUBLED AIRLINES INCREASINGLY ARE MORE LIKELY TO LEASE PLANES THAN BUY THEM WHILE THAT WOULD HELP BOTH GPA AND GE'S POLARIS AIRCRAFT LEASING SUBSIDIARY IT WILL ALSO ENSURE THAT NEW PLANES ORDERED BY GPA ARE POWERED BY GE ENGINES CALL IT DEFENSIVE OR OFFENSIVE OR WHATEVER GE IS JUST TRYING TO LOOK AHEAD IN A MARKET WHERE EVEN THE THREE PLAYERS ARE JUST TOO MANY SAID AN INDUSTRY EXECUTIVE THOSE FAMILIAR WITH THE TALKS SAID MOST OF THE PLANES GE WOULD BUY FROM GPA HAVE GE ENGINES INDUSTRY EXECUTIVES SAID GE'S PROPOSED OWNERSHIP OF GPA WILL BRING GE IN CLOSE CONTACTS WITH CERTAIN AIRLINES AND INCREASES ITS ABILITY TO MAKE DEALS BUT GE ALSO MUST BE CAREFUL JUST WHERE IT TREADS AS IT RESHAPES THE MARKETPLACE INTERNATIONAL LEASE FINANCE CORP A UNIT OF INSURANCE GIANT AMERICAN INTERNATIONAL GROUP IS ONE OF ITS BIGGEST CUSTOMERS FOR JET ENGINES ITS PORTFOLIO OF ABOUT 230 NEWER AIRCRAFT HAS A VALUE MORE THAN 75 BILLION SAID STEVEN UDVARHAZY PRESIDENT OF INTERNATIONAL LEASE AND THIS YEAR ALONE INTERNATIONAL LEASE WILL BUY ABOUT 500 MILLION WORTH OF ENGINES FROM GENERAL ELECTRIC FOR MORE THAN 40 JETS THE LESSOR HAS ORDERED FROM BOEING AND EUROPE'S AIRBUS INDUSTRIE CONSORTIUM THEY'RE WALKING A FINE LINE HERE SAID MR HAZY BUT HE NOTED THAT TOP GE MANAGERS HAVE WALKED HIM CAREFULLY THROUGH THEIR PLANS AND HE SEES NO COMPETITIVE THREAT MR HAZY SAYS THE GE MOVE IS GOOD ALL AROUND FOR THE LEASING BUSINESS FOR SEVERAL REASONS GE HAS NO PLANS TO BEGIN BUYING LARGE NUMBERS OF NEW AIRLINERS ON SPECULATION AND THEN LOOK TO PLACE THEM AS INTERNATIONAL LEASE AND GPA HISTORICALLY HAVE DONE FOR AIRCRAFT MAKERS THE GE MOVE ALSO LOOKS GOOD WHILE MCDONNELL DOUGLAS CORP HAS NOT SHOWN THE SAME FLEXIBILITY TO GPA'S PLIGHT AS OTHER MANUFACTURERS ALL OF THE JET MAKERS ARE EAGER TO SEE GPA STAY ALOFT TO KEEP ITS ASSETS FROM BEING DISBURSED INTO A WORLD MARKET ALREADY AWASH IN AIRCRAFT BOEING OF COURSE HAS THE ADDED INCENTIVE OF WANTING TO BE REPAID FOR ITS 570 MILLION IN SECURED LOANS A PERSON FAMILIAR WITH BOEING'S LENDING TO GPA SAID THE JET MAKER PROVIDED SEPARATE LOANS OF 345 MILLION AND 224 MILLION IN FEBRUARY AND MARCH HE SAID THE LOANS PROVIDED FINANCING TO AIRLINES THAT WERE SET TO TAKE DELIVERY OF BOEING AIRCRAFT THROUGH GPA HE SAID GPA HAD BEEN UNABLE TO PROVIDE THE FINANCING AS IT HAD INITIALLY INTENDED BRIAN COLEMAN CONTRIBUTED TO THIS ARTICLE 9305170082 930517 MICHELIN REVENUE FALLS PARIS FRENCH TIRE GROUP MICHELIN SA REPORTED FIRSTQUARTER GROUP CONSOLIDATED REVENUE FELL 14 TO 1472 BILLION FRANCS 270 BILLION FROM 1706 BILLION FRANCS A YEAR EARLIER THE COMPANY MADE THE ANNOUNCEMENT IN A REQUIRED STANDARD LEGAL FILING ON ITS FINANCES 9305170081 930517 BOSNIAN SERBS VOTE FOR OR AGAINST PEACE IN GRIM REFERENDUM UNDER PAINTING OF LAST SUPPER PEOPLE OF KOZLUK SAY NO' LET THE WARPLANES COME BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL KOZLUK BOSNIAHERZEGOVINA FOR SUCH AN EPIC DECISION CIRCLE YES FOR PEACE NO FOR WAR A SMALL CUP OF MUDDY SERBIAN COFFEE THICK AS SYRUP ISN'T STRONG ENOUGH SO MITAR STOJANOVIC POURS A GLASS OF HOMEBREWED PLUM BRANDY BLESSED BY A WOODEN ORTHODOX CRUCIFIX HE DROPPED IN THE BOTTLE LAST YEAR HE CROSSES HIMSELF AND TAKES A GULP TO VOTE YES HE MUSES WILL MAKE US CAPTIVE TO THE MUSLIMS LIKE PIGS IN A STY TO VOTE NO MEANS WE MIGHT BE BOMBED BY AMERICA ANOTHER GULP PIGS IN A STY OR BOMBS FROM THE SKY HE WILL TAKE THE BOMBS OF COURSE I WILL VOTE NO HE DECLARES BETTER THE GRAVE THAN A SLAVE WITH SUCH POETIC IF NOT SUICIDAL RESOLVE RESIDENTS IN SERBIANCONTROLLED AREAS OF BOSNIAHERZEGOVINA THIS PAST WEEKEND STEPPED OVER BOMB CRATERS AND THROUGH BULLETPOCKED DOORS TO CAST WHAT WILL LIKELY BE A RESOUNDING NO TO A UNITED NATIONSSPONSORED PEACE PLAN SUCH A RESULT NOW BEING TABULATED IN THE VALLEYS AND MOUNTAINS OF BOSNIA WOULD INCREASE PRESSURE ON AMERICAN AND EUROPEAN LEADERS TO LAUNCH SOME KIND OF MILITARY INTERVENTION TO STOP THE WAR VOTERS THE WORLD OVER OFTEN GRUMBLE OF HAVING TO CHOOSE BETWEEN THE LESSER OF TWO EVILS BUT HAS ANYONE EVER BEFORE HAD THE CHANCE TO VOTE FOR BEING BOMBED TO THE BOSNIAN SERBS GRIPPED BY A BELIEF THAT THE WORLD IS OUT TO GET THEM ONE WAY OR ANOTHER A PARANOIA THAT HAS HELPED GIVE THE WAR ITS DEADLY MOMENTUM THE REFERENDUM IS A GRIM AFFAIR TO CHOOSE THEIR FORM OF DESTRUCTION EITHER WAY WE LOSE SAYS AN ART TEACHER IN THE NORTHERN BOSNIAN TOWN OF BRCKO RAILTHIN AND DRAGGING MIGHTILY ON A RARE CIGARETTE SHE IS AN ELECTION JUDGE OVERSEEING THE VOTING IN A SHRAPNELSCARRED BUTCHER SHOP STEPPING OUTSIDE THE SHUTTERED SHOP DARK LIKE A CAVE FOR LACK OF ELECTRICITY SHE SHOWS A MAP OF THE UN PLAN THAT WOULD DIVIDE BOSNIA INTO PROVINCES GENERALLY ALONG ETHNIC LINES BRCKO LIKE KOZLUK AND MANY OTHER TOWNS AND VILLAGES CURRENTLY CONTROLLED BY THE SERBS WOULD FALL UNDER MUSLIM DOMINATION OTHER SERBCONTROLLED AREAS WOULD BE ISOLATED CUT OFF FROM THE REPUBLIC OF SERBIA AND THE SERBS FEAR THEY WILL HAVE DONE TO THEM WHAT THE WORLD SAYS THEY HAVE BEEN DOING TO OTHERS IF WE VOTE YES WE WON'T EXIST HERE ANYMORE WE WILL EITHER HAVE TO MOVE OR BE KILLED BY THE MUSLIMS THE ART TEACHER GROANS WE KNOW IF WE VOTE NO THERE IS A POSSIBILITY OF MILITARY INTERVENTION WE'RE NOT NAIVE BUT FOR US IT CAN'T GET ANY WORSE SHE VOTES NO IN THE BACKGROUND TWO MORTAR SHELLS EXPLODE FOLLOWED BY A BURST OF SMALLARMS FIRE THE UN SAYS THE SERBS ARE MOUNTING AN OFFENSIVE MUSLIM SHELLING THE TEACHER SAYS THE REFERENDUM CALLED BY THE BOSNIAN SERB PARLIAMENT AND THE LIKELY RESULT WHICH IS EXPECTED TO BE OFFICIALLY ANNOUNCED IN A COUPLE OF DAYS ECHO ALL THE CONTRADICTIONS AND UNFATHOMABLE BRUTALITY OF THE MEDIEVALLIKE WAR WHICH HAS CONFOUNDED THE REST OF THE WORLD THIS TIME SEEING THEIR FUTURE ON A WHITE BALLOT EVEN SOME BOSNIAN SERBS THEMSELVES ARE BEFUDDLED NEVER IN MY LIFE HAVE I BEEN SO CONFUSED SAYS VELJKO PETROVIC AN AMIABLE VETERINARIAN IN THE EASTERN BOSNIAN TOWN OF JANJA INDEED MR PETROVIC WALKS OUT OF HIS LIVING ROOM A VERITABLE LIBRARY OF NATIONAL GEOGRAPHIC MAGAZINES SAYING HE WISHES THE WAR WOULD END AND RETURNS WITH A NEWSPAPER CLIPPING ILLUSTRATING WHY IT WON'T IT SHOWS THE FACES OF DOZENS OF YOUNG SERBS FROM THE AREA WHO HAVE BEEN KILLED IN THE WAR SUDDENLY HIS THOUGHTS DRIFT BACK TO HIS CHILDHOOD AND TO A SIGN HE SAYS HUNG OUTSIDE LOCAL SHOPS DURING WORLD WAR II BY WHAT HE CALLS THE CROATIANMUSLIM FASCIST OCCUPIERS SERBS DOGS AND JEWS FORBIDDEN I FELT HONORED I LIKE DOGS AND JEWS HE SAYS BUT NOW THE IDEA OF HIS SERBCONTROLLED NORTHERN BOSNIAN REGION BEING FLANKED BY MUSLIM AND CROATIAN PROVINCES FILLS HIM WITH DREAD THUS HE HITCHES UP HIS COWBOY BELT PURCHASED ON A TRIP TO CALIFORNIA TO VISIT HIS BROTHER AND WALKS TO THE POLLING BOOTH CROSSING GAVRILO PRINCIP STREET NAMED AFTER THE SERB WHO SHOT ARCHDUKE FERDINAND IN SARAJEVO IN 1914 AND IGNITED WORLD WAR I HE ARRIVES AT THE PRIMARY SCHOOL AND DRAWS HIS REQUISITE CIRCLES HOW DID HE VOTE HE WON'T SAY BETTER TO KEEP QUIET AND LET PEOPLE THINK YOU ARE A FOOL SAYS THE VET THAN TO OPEN YOUR MOUTH AND PROVE IT FOR BOSNIA'S SERBS THEIR ACTIONS HAVE BEEN SPEAKING LOUDER THAN WORDS MANY OF THEM FOR INSTANCE INSIST THAT NO SERB GUNS HAVE BEEN SHELLING THE CAPITAL OF SARAJEVO THEY REJECT AS ABSURD CLAIMS THAT SERB SOLDIERS HAVE RAPED 20000 MUSLIM WOMEN AND THEY SAY IT IS THE CROATS AND MUSLIMS WHO ARE RUNNING THE DETENTION CAMPS NOT THEY THEY ARE GENUINELY BAFFLED WHY THE WORLD HAS CAST THE SERBS AS THE AGGRESSORS NOT AS THE DEFENDERS NOT AS THE VICTIMS WE'RE ASKING OURSELVES WHY DO THEY TREAT US THIS WAY' WE WERE ALWAYS PEACEFUL PEOPLE SAYS MIHAILO MALETIC OFFERING COFFEE AND JUICE ON THE PORCH OF HIS FAMILY'S IMMACULATE HOME IN EASTERN BOSNIA WE DON'T WANT TO KILL ANYONE ANYONE WHO COMES INTO BOSNIA IN PEACE THEY ARE WELCOME WE WILL DRINK COFFEE WITH THEM IF THEY COME FOR WAR THEY WILL SUFFER HE VOTES NO LET THE WESTERN WARPLANES COME HE SAYS THEY DON'T KNOW WHAT BOSNIA IS HE WINKS IT IS ROCK STONES WE WILL BE HIDING BEHIND EVERY ROCK FARTHER UP THE ROAD MILOS KACAREVIC SLOWS HIS BICYCLE TO A STOP A SERBIAN SOLDIER BACK FROM THE FRONT HE IS TIRED OF HIDING I'M SICK OF EVERYTHING HE SAYS I'M LUCKY I'M STILL ALIVE HE VOTES YES HE VOTES TO GO FISHING IT'S EASY TO FISH HE SAYS WE JUST NEED PEACE MUJO MUSIC A MUSLIM IN SERBOCCUPIED JANJA VOTES AT THE PRIMARY SCHOOL A FEW BLOCKS FROM WHERE SERBS DESTROYED A MOSQUE LAST MONTH ALTHOUGH MUSLIMS AND CROATS COULD VOTE FEW OF THEM DID FIRST MOST OF THE AREAS HAVE BEEN ETHNICALLY CLEANSED AND AMONG THE NONSERBS REMAINING THERE WERE FEARS THAT REGISTERING TO VOTE WOULD EXPOSE THEM TO FUTURE CLEANSING MR MUSIC VOTES BECAUSE HE IS PLAGUED BY NIGHTMARES NOT OVER THE MOSQUE BUT OVER HIS PENSION FROM THREE YEARS OF WORKING IN GERMANY FOR THE PAST YEAR SINCE THE START OF THE WAR HE HASN'T SEEN ONE PFENNIG OF THE 119 DEUTSCHE MARKS A MONTH HE SHOULD BE GETTING THAT WOULD MAKE HIM A RICH MAN IN JANJA A FEW NIGHTS AGO I DREAMT THAT I WENT TO GERMANY TO GET MY PENSION HE SAYS RELAXING UNDER A PEAR TREE IN HIS YARD INSTEAD OF MONEY THEY OFFERED ME FOOD AND CLOTHING LIKE A REFUGEE AND EIGHT MARKS TO GO BACK TO BOSNIA HE VOTES YES NOT SO MUCH FOR THE UN PEACE PLAN WHICH CONDEMNS HIM TO LIVE IN A SERBCONTROLLED AREA BUT FOR THE CHANCE TO GET HIS MONEY HE SERVES A ROUND OF SLIVOVITZ THE PLUM SCHNAPPS BELOVED BY SERBS AND MUSLIMS ALIKE IF YOU WRITE THAT WE SERVED SLIVOVITZ SOMEONE IN SAUDI ARABIA WILL BE VERY MAD HE SAYS HE LAUGHS AT THE SERBIAN CLAIMS THAT BOSNIA'S MUSLIMS ARE FUNDAMENTALISTS INSISTING THEY CAN HANG ME BEFORE I'LL GIVE UP DRINKING IN KOZLUK HAVING VOTED NO MR STOJANOVIC HEADS BACK TO THE FRONT LINE FOUR MILES TO THE WEST TO WATCH HE SAYS FOR THE WESTERN WARPLANES HIS TREK TAKES HIM PAST THE POLLING STATION WHERE LOUD SERBIAN FOLK MUSIC MINGLES WITH THE WARM DRIZZLE OF RAIN ABOVE THE VOTING TABLE HANGS A PAINTING OF THE LAST SUPPER MORE THAN 500 PEOPLE WERE EXPECTED TO VOTE HERE THAT IS MORE THAN 500 NO VOTES WE ALL AGREE SAYS MR STOJANOVIC BETTER TO TAKE OUR CHANCES WITH BOMBS THAN TO LIVE UNDER THE MUSLIMS WHO WILL SHOOT US 9305170080 930517 ECONOMY MORE FIRMS LEERY ABOUT THE RECOVERY TOOK LONGER TO PAY BILLS IN 1ST QUARTER BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NUMBER OF COMPANIES TAKING LONGER TO PAY THEIR BILLS INCREASED DURING THE FIRST QUARTER FOR THE FIRST TIME IN SIX QUARTERS A SIGN THAT BUSINESSES ARE WARY ABOUT THE PACE OF THE RECOVERY THIS TIGHTERFISTED APPROACH IN THE FIRST QUARTER WAS SPREAD ACROSS ALL REGIONS AMONG COMPANIES OF ALL SIZES ACCORDING TO A DUN & BRADSTREET CORP SURVEY TO BE RELEASED TODAY PAYMENT RECORDS OF ONE MILLION COMPANIES SHOWED THAT 57 MORE FIRMS TOOK LONGER TO PAY THEIR BILLS IN THE FIRST QUARTER COMPARED WITH 5 IN THE PRECEDING FOURTH QUARTER NONETHELESS THERE WERE NEARLY TWICE AS MANY SLOWERPAYING COMPANIES IN THE THIRD QUARTER OF 1991 JUST AFTER THE RECESSION ENDED AND ECONOMISTS INTERPRETED THE RECENT CASHHOARDING AS A TEMPORARY SETBACK WHILE THE ECONOMIC RECOVERY REMAINS ON TRACK I DON'T THINK THIS BODES ILL FOR THE RECOVERY BUT OBVIOUSLY IT WILL MAKE OTHER BUSINESSES CAUTIOUS ABOUT EXTENDING CREDIT SAID IRWIN KELLNER CHIEF ECONOMIST FOR CHEMICAL BANKING CORP MR KELLNER CITED THESE REASONS FOR THE REVERSAL RECENT ADVERSE ECONOMIC REPORTS AND NERVOUSNESS ABOUT POSSIBLY HIGHER TAXES THIS IS AN ENVIRONMENT WHERE BUSINESS IS LOOKING EVERY WHICH WAY POSSIBLE TO CUT COSTS AND ONE WAY IS TO HOLD OFF PAYMENTS HE SAID A SPOT SURVEY OF SPECIFIC COMPANIES SHOWED THAT FEW ACKNOWLEDGED MAKING PAYMENTS MORE SLOWLY BUT MOST CONFIRMED THAT SLOWER PAYMENTS TO THEM HAVE THEREFORE MADE IT TOUGHER TO PAY PROMPTLY LARGER COMPANIES THOSE WITH MORE THAN 500 EMPLOYEES CHANGED THEIR HABITS MOST MARKEDLY WITH THE NUMBER PAYING THEIR BILLS FASTER THAN BEFORE DECLINING TO 11 DOWN FROM 57 IN THE FOURTH QUARTER THE D&B RESULTS COMPILED BY THE DUN & BRADSTREET INFORMATION SERVICES UNIT ARE BASED ON A PAYMENT PERFORMANCE INDEX THE INDEX REPRESENTS THE PERCENTAGE OF SURVEYED COMPANIES THAT PAY THEIR BILLS FASTER MINUS THOSE PAYING MORE SLOWLY THE INDEX IS BASED ON A COMPUTER ANALYSIS OF BILLS PAID BY ONE MILLION COMPANIES MORE TOOK LONGER TO PAY FOR THE FIRST QUARTER 77 MORE SMALL COMPANIES THOSE WITH FEWER THAN 20 EMPLOYEES TOOK LONGER TO PAY COMPARED WITH 74 IN THE FOURTH QUARTER OF 1992 THE SURVEY SHOWED THAT 28 MORE MEDIUMSIZED COMPANIES THOSE WITH 20 TO 499 EMPLOYEES TOOK LONGER TO PAY COMPARED WITH 17 IN THE PRECEDING PERIOD ECONOMISTS ALSO CITED INCLEMENT WEATHER IN MARCH AS ONE REASON FOR THE CHANGE THIS IS MOSTLY A SIGN THAT THE FIRST QUARTER WAS A LOUSY QUARTER PARTICULARLY FOR RETAILING WHICH IS WHERE A LOT OF THE BUSINESSES ARE DAVID WYSS AN ECONOMIST FOR DRI/MCGRAWHILL BOSTON SAID RETAILERS GOT KILLED BY THE WEATHER IF PEOPLE CAN'T GET TO THE RESTAURANT THEY'RE NOT GOING TO ORDER A MEAL AND IF THEY DON'T ORDER A MEAL IT'S HARD FOR THE RESTAURANT OWNER TO PAY HIS BILLS WILLIAM DUNKELBERG HEAD OF THE TEMPLE UNIVERSITY SCHOOL OF BUSINESS AND MANAGEMENT AND CHIEF ECONOMIST FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS SAID THAT MANY FIRMS WERE SHORT ON CASH DURING THE FIRST QUARTER BECAUSE THEY WENT ON BUYING SPREES DURING THAT REDHOT SECOND HALF OF 1992 SO THERE WAS A SQUEEZE ONE OF THE COMPANIES EXPERIENCING DELAYED PAYMENTS IS ASHER'S CHOCOLATES PHILADELPHIA A FAMILYOWNED BUSINESS WITH ABOUT 150 EMPLOYEES CHIEF EXECUTIVE OFFICER JOHN L ASHER HAS SEEN A VERY MARKED PROBLEM WITH BILLPAYING FOR 18 MONTHS CUSTOMERS PAY ON AVERAGE IN 30 TO 45 DAYS HE SAID THE RATE WOULD BE WORSE HE SAID IF NOT FOR HIS THREATS TO CUT OFF FUTURE CHOCOLATE AND FUDGE DELIVERIES UNLESS CUSTOMERS PAY ON TIME IN CLEVELAND BRAD ROLLER PRESIDENT OF SWIGER COIL SYSTEMS INC SAID HIS 95PERSON FIRM IS PAID ON AVERAGE IN 45 DAYS HE SAID SOME LARGE STEEL CUSTOMERS HAVE THE CLOUT TO COMMAND 60DAY PAYMENT TERMS TO ENSURE SWIFTER PAYMENT FROM SMALLER FIRMS MR ROLLER SAID HE TIGHTENED CREDIT TERMS HIS OWN FIRM PAYS IN 30 DAYS HE SAID AT THE 700EMPLOYEE TAYLOR MACHINE WORKS INC LOUISVILLE MISS PRESIDENT WILLIAM LEX TAYLOR SAID HE'S MORE WORRIED BY A DROP IN EUROPEAN EXPORTS BECAUSE OF THAT CONTINENT'S RECESSION AND WEAKENING CURRENCY THAN HE IS WITH BILL COLLECTIONS WE HAVEN'T SEEN ANY SLOWING HE SAID BUT IN CALIFORNIA CHRISTOPHER STERN OWNER AND PRESIDENT OF CALIFORNIA BINDERY A 60EMPLOYEE FIRM SAID HE HAS SEEN STEADY DETERIORATION OVER THE LAST TWO YEARS THE PACIFIC REGION SHOWED THE HIGHEST PERCENTAGE OF SLOWERPAYING FIRMS IN THE FIRST QUARTER ACCORDING TO D&B THE SMALLER COMPANIES ARE TRYING TO HANG ON MR STERN SAID SMALL CUSTOMERS WHO PAID WITHIN 45 DAYS TWO YEARS AGO NOW TAKE 60 TO 90 THESE COMPANIES ARE WAITING FOR THEIR CUSTOMERS TO PAY THEM BEFORE THEY PAY US THEY SAY THEY VALUE THE BUSINESS RELATIONSHIP BUT AS ONE GUY SAID YOU CAN'T GET BLOOD OUT OF A STONE' MR STERN SAID ONE SMALL CUSTOMER THREATENED IF YOU WANT TO BE PAID NOW SUE ME 9305170079 930517 BUSINESS BRIEF GENERAL NUTRITION COS COMPANY SEES SIZABLE RISE IN FIRSTQUARTER EARNINGS GENERAL NUTRITION COS SAID IT EXPECTS TO REPORT FISCAL FIRSTQUARTER EARNINGS ABOVE ANALYSTS' ESTIMATES OF 25 CENTS A SHARE COMPARED WITH NET INCOME OF 955000 OR 10 CENTS A SHARE A YEAR AGO THE PITTSBURGH SPECIALTY RETAILER OF VITAMINS AND MINERAL SUPPLEMENTS PERSONAL CARE AND FITNESS PRODUCTS ALSO SAID IT EXPECTS TO REPORT REVENUE OF 124 MILLION UP 16 FROM 107 MILLION IN THE QUARTER ENDED APRIL 25 1992 THE COMPANY SAID ITS STOREOPENING PROGRAM IS UNDER WAY WITH 53 NEW STORES HAVING OPENED IN THE FIRST QUARTER THERE ARE 1269 GENERAL NUTRITION STORES 9305170078 930517 NISSAN RULING MAY HURT EFFORT BY BIG THREE PATHFINDER CASE IS SETBACK FOR US FIRMS SEEKING TO EXTEND 25 TARIFF BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FEDERAL JUDGE'S RULING THAT THE US WRONGLY IMPOSED A 25 TARIFF ON AN IMPORTED TWODOOR SPORTUTILITY VEHICLE MAY HINDER THE EFFORT BY US AUTO MAKERS TO HAVE THE GOVERNMENT EXTEND THE 25 LEVY TO FOURDOOR MULTIPURPOSE VEHICLES JUDGE JANE A RESTANI OF THE COURT OF INTERNATIONAL TRADE RULED FRIDAY THAT THE TREASURY DEPARTMENT WRONGLY IMPOSED THE 25 TARIFF MEANT FOR CARGO VEHICLES ON IMPORTS OF NISSAN MOTOR CO'S TWODOOR PATHFINDER SPORTUTILITY VEHICLE RESOLVING A LAWSUIT BROUGHT BY NISSAN JUDGE RESTANI AGREED WITH THE JAPANESE VEHICLE MAKER THAT WHILE THE TWODOOR UTILITY VEHICLE SHARED SOME ENGINEERING CHARACTERISTICS WITH TRUCKS IT WAS PRIMARILY DESIGNED FOR PASSENGERS NOT CARGO AND THEREFORE FALLS UNDER THE 25 DUTY IMPOSED ON IMPORTED CARS JUDGE RESTANI ORDERED THE PATHFINDER CLASSIFIED UNDER THE 25 DUTY SHE ALSO ORDERED THE US CUSTOMS DEPARTMENT TO REIMBURSE NISSAN FOR ANY EXCESS DUTIES THE COMPANY PAID AT THE HIGHER RATE THAT AMOUNT HASN'T YET BEEN DETERMINED AND A NISSAN SPOKESMAN SAID HE DIDN'T HAVE AN ESTIMATE OF THE AMOUNT THE RULING APPLIES ONLY TO NISSAN AND AFFECTS ONLY ABOUT 20000 VEHICLES FOREIGN AUTO MAKERS ALL BUT STOPPED IMPORTING THE TWODOOR UTILITY VEHICLES AFTER THE 1990 DECISION AND NISSAN SAID IT HADN'T ANY IMMEDIATE PLANS TO BEGIN IMPORTING THE VEHICLES AGAIN WE'RE CONSIDERING ALL OPTIONS SAID TONY WELLS MANAGER OF INDUSTRY AND CORPORATE RELATIONS FOR NISSAN MOTOR CORP USA NISSAN'S US SUBSIDIARY NEVERTHELESS THE NISSAN LAWSUIT WAS WIDELY VIEWED AS A TEST CASE OF THE GOVERNMENT'S DECISION IN 1990 TO LEAVE ALL TWODOOR UTILITY VEHICLES AT THE 25 CARGOVEHICLE RATE WHILE PUTTING MINIVANS AND FOURDOOR UTILITY VEHICLES IN THE 25 CATEGORY JUDGE RESTANI'S REASONING IS SURE TO SHAKE UP US AUTO MAKERS WHICH HAVE BEEN PRESSURING PRESIDENT CLINTON TO REIMPOSE THE 25 RATE ON IMPORTED MINIVANS AND FOURDOOR UTILITY VEHICLES THOMAS H HANNA PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE AMERICAN AUTOMOBILE MANUFACTURER'S ASSOCIATION A WASHINGTON TRADE GROUP SAID WE'RE OBVIOUSLY DISAPPOINTED AND DISAGREE WITH JUDGE RESTANI'S DECISION A SPOKESMAN FOR FORD MOTOR CO CONTENDED THAT THE DECISION MAKES BAD POLICY THE RESULT IS THAT THE NISSAN PATHFINDER IS CLASSIFIED AS A CAR WHILE IT'S IMPORTED BUT AS A TRUCK FOR US FUEL ECONOMY EMISSIONS AND GAS GUZZLER RULES AS WELL AS WHEN SALES ARE REPORTED IN THE MEDIA HE SAID THE INCONSISTENCY IN OUR LAWS AND REGULATIONS OFTEN SEEM TO BENEFIT THE IMPORTERS IN THEIR COMPETITION WITH US MANUFACTURERS REPRESENTATIVES OF FOREIGN AUTO MAKERS HAILED THE DECISION MY SENSE IS THAT JUDGE RESTANI IS LOOKING AT THE VEHICLE AS A LAYMAN WOULD AND SHE SEES IT OUTFITTED FOR PEOPLE SAID JOHN REHM A WASHINGTON ATTORNEY WHO REPRESENTS THE ASSOCIATION OF INTERNATIONAL AUTOMOTIVE MANUFACTURERS AN IMPORTERS TRADE ASSOCIATION THE DECISION IS GOING TO MAKE IT HARDER FOR DETROIT AND THOSE IN AND AROUND THE WHITE HOUSE WHO WOULD LIKE TO RECLASSIFY THE FOURDOORS THE BIG THREE ALREADY DOMINATE THE SPORTUTILITY AND MINIVAN MARKET BUT A HIGHER TARIFF ON IMPORTS WOULD REDUCE WHAT LITTLE COMPETITION THERE IS AND ALLOW THE DOMESTIC AUTO MAKERS TO RAISE PRICES WHILE THE CASE WAS PRESENTED BY THE US GOVERNMENT IN SOME WAYS JUDGE RESTANI'S DECISION IS A SHARP REJECTION OF ARGUMENTS MADE BY THE BIG THREE AUTO MAKERS FOR IMPOSING THE HIGHER TARIFF ON ALL MINIVANS AND SPORTUTILITY VEHICLES THE GOVERNMENT RELIED ALMOST ENTIRELY ON EXPERT WITNESSES FROM FORD AND CHRYSLER CORP WHO TESTIFIED THAT THE PATHFINDER'S BODYTYPE AND DESIGN DERIVE FROM THOSE OF TRUCKS JUDGE RESTANI WHO DURING THE TRIAL TOOK A TEST DRIVE OF THE NISSAN PATHFINDER AND OTHER VEHICLES FOCUSED INSTEAD ON NISSAN'S INTENDED MARKET FOR THE VEHICLE AND HOW IT IS USED BY CONSUMERS FROM A BASIC STRUCTURAL ENGINEERING VIEWPOINT ONE MIGHT WITHOUT DISSEMBLING CALL THE PATHFINDER A TRUCK' JUDGE RESTANI WROTE THIS DOES NOT MAKE THE PATHFINDER A TRUCK' THERE WERE SOME BASIC STRUCTURAL CHANGES AND NUMEROUS OTHER DESIGN POINTS WHICH WERE ALL FOR THE PURPOSE OF ACCOMMODATING PASSENGERS WHILE THE LATTER CHANGES MAY SEEM MINOR TO ENGINEERS THEY ARE PART OF THE TOTAL DESIGN OF THE VEHICLE IN A FOOTNOTE IN THE RULING JUDGE RESTANI SET FORTH SOME GENERAL GUIDELINES FOR DETERMINING WHICH MULTIPURPOSE VEHICLES AS TWODOOR AND FOURDOOR MINIVANS AND UTILITY VEHICLES ARE COLLECTIVELY KNOWN QUALIFY FOR THE 25 RATE SHE WROTE THAT VEHICLES DESIGNED 50 FOR PASSENGER USE AND 50 FOR CARGO OR SPECIAL PURPOSES COULD BE TAXED AT 25 JOSEPH LIEBMAN THE ATTORNEYINCHARGE OF THE JUSTICE DEPARTMENT'S INTERNATIONAL TRADE FIELD OFFICE IN NEW YORK DECLINED TO COMMENT ON THE RULING OR ON WHETHER THE GOVERNMENT WILL APPEAL 9305170077 930517 MARKETING FOCUS ON FILM BY THOMAS R KING HOLLYWOOD IS STARTING TO WORRY THAT THE SUMMER MOVIE SEASON WON'T GET OFF TO THE ROARING START THAT LAST YEAR'S HAD LED BY SEQUELS TO LETHAL WEAPON AND ALIEN MOVIES HAD RECORD TICKET SALES LAST MEMORIAL DAY WEEKEND BUT THE BIGGEST SEQUEL THIS YEAR IS HOT SHOTS PART DEUX A REPRISE OF A HIT COMEDY AND THE BUZZ ON THIS YEAR'S EARLYSUMMER PICTURES ISN'T NEAR THE SAME FEVERISH LEVEL A TROUBLING SIGN IS THAT STUDIOS AREN'T OFFERING ADVANCE SCREENINGS OF MANY MOVIES INDICATING TO SOME ANALYSTS A LACK OF SIZZLERS TYPICALLY STUDIOS REPEATEDLY SCREEN THE FILMS THEY ARE MOST CONFIDENT ABOUT TO GET MOVIEGOERS AND MEDIA PEOPLE EXCITED LAST YEAR WALT DISNEY SCREENED SISTER ACT NEARLY TWO MONTHS BEFORE IT OPENED AT THE END OF MAY STUDIOS SAY THEY HAVEN'T SCREENED SOME PICTURES EARLIER INCLUDING PARAMOUNT PICTURES' SHARON STONE THRILLER SLIVER WHICH OPENS FRIDAY BECAUSE THE FILMS WEREN'T FINISHED PARAMOUNT WILL SCREEN SLIVER FOR THE MEDIA THE DAY BEFORE IT OPENS THE GIANT BUSINESS OF MARKETING MOVIES HAS SPAWNED NOT ONLY BIG PROMOTIONS LIKE THIS SUMMER'S TIEINS BETWEEN BURGER KING AND LAST ACTION HERO OR MCDONALD'S AND JURASSIC PARK BUT ALSO A RAFT OF LITTLE ONES NOT EVERYONE IN HOLLYWOOD HOWEVER SAYS THE SMALLER PROMOTIONS DO MUCH FOR STUDIOS BIG MARKETERS SPEND MILLIONS ON TV ADS FOR THEIR PROMOTIONS INCREASING THE STUDIOS' TV EXPOSURE BUT SMALLER MARKETERS OFTEN RUN ONLY A COUPON IN NEWSPAPERS OR PUT SIGNS IN THEIR STORES AMONG THIS SUMMER'S SMALLER TIEINS TRISTAR'S SLEEPLESS IN SEATTLE WILL BE PROMOTED WITH POSTERS IN STARBUCKS COFFEE SHOPS IN 10 CITIES TOM CRUISE'S FILM THE FIRM FROM PARAMOUNT WILL GET A PLUG FROM A FILOFAX PROMOTION IN DEPARTMENT STORES AND POETIC JUSTICE A COLUMBIA PICTURES FILM DIRECTED BY JOHN SINGLETON WILL BE PITCHED IN HAIRCARE SALONS THAT SELL SEBASTIAN INTERNATIONAL PRODUCTS THE NAME OF THE GAME IS FOR A MOVIE TO HAVE AS STRONG AN OPENING WEEKEND AS POSSIBLE AND THE WAY TO THAT IS WITH TV ADVERTISING SAYS CASEY WOJCIECHOWSKI EXECUTIVE VICE PRESIDENT AT GREY ENTERTAINMENT & MEDIA AN AD AGENCY IN BURBANK CALIF SMALLER PROMOTIONS HE ADDS HAVE QUESTIONABLE VALUE SOME INDUSTRY OFFICIALS SAY LARGE PROMOTIONS STAFFS SOMETIMES LINE UP LONG LISTS OF PROJECTS TO JUSTIFY THEIR EXISTENCE OR APPEASE PRODUCERS STUDIO EXECUTIVES HOWEVER ARGUE THAT EVEN SMALL PROMOTIONS CONTRIBUTE TO A FILM'S TOTAL MARKETING EFFORT TRISTAR SAYS ITS LINK WITH STARBUCKS FOR SLEEPLESS IN SEATTLE OFFERS IT EXPOSURE IN AN ENVIRONMENT THAT ISN'T CLUTTERED WITH OTHER MOVIE ADS AND THERE'S LITTLE DOWNSIDE THEY SAY SINCE STUDIOS PAY LITTLE OR NOTHING FOR MOST SUCH PROMOTIONS CAN YOU LIVE WITHOUT IT PROBABLY SAYS KATHY JONES TRISTAR'S EXECUTIVE VICE PRESIDENT OF MARKETING BUT DOES IT GIVE ADDED VALUE AND VISIBILITY WE THINK SO HOW DO YOU MARKET A MOVIE YET KEEP THE FILM'S STARS OUT OF PREVIEWS AND TV ADS THAT WAS THE SELFIMPOSED PROBLEM FACING UNIVERSAL PICTURES WHICH HAS PROMOTED ITS COSTLY DINOSAUR THRILLER JURASSIC PARK WITHOUT SHOWING THE CREATURES THE FILM DIRECTED BY STEVEN SPIELBERG WILL OPEN JUNE 11 FRETTING THAT MOVIEGOERS MIGHT NOT WANT TO SEE IT IF COMMERCIALS GAVE AWAY TOO MUCH THE STUDIO HAS RUN ADS THAT SHOW ONLY QUICK CUTS OF DINOSAUR CLAWS AND TAILS THIS DISCRETION MIRRORS CAMPAIGNS FOR OTHER MOVIES BY MR SPIELBERG ADS FOR ET THE EXTRATERRESTRIAL FOR EXAMPLE NEVER SHOWED THE TITLE CHARACTER BUT THINGS ARE ABOUT TO CHANGE THIS WEEKEND UNIVERSAL WILL ROLL OUT IN THEATERS A JURASSIC PARK TRAILER THAT SHOWS FULL SHOTS OF THE DINOSAURS AUDIENCES WILL SEE A HERD OF GALLIMIMUSES ROUGHLY THE SIZE OF ANTELOPES RUNNING THROUGH A FIELD AND A TYRANNOSAURUS DASHING IN FRONT OF A JEEP UNIVERSAL A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL'S MCA REVERSED COURSE RECENTLY INSIDERS SAY AFTER IT BEGAN WORK ON POSSIBLE TV COMMERCIALS FEATURING MORE SHOTS OF DINOSAURS THE MARKETING DEPARTMENT WAS SO EXCITED ABOUT ONE 60SECOND AD THAT IT DECIDED TO LENGTHEN IT BY A FEW SECONDS AND SHIP IT AS A TRAILER PERRY KATZ UNIVERSAL'S SENIOR VICE PRESIDENT OF MARKETING SAYS LETTING PEOPLE KNOW THAT WHAT YOU'RE GOING TO SEE IS REMARKABLE UNBELIEVABLE AND SOMETHING YOU'VE NEVER SEEN BEFORE IS A GOOD THING STILL HE CALLS THE NEW IMAGES VERY VERY BRIEF GLIMPSES MOVIEGOERS WHO BUY ADVANCE TICKETS TO JURASSIC PARK STARTING FRIDAY THROUGH THE MOVIEFONE TICKETING SERVICE CAN ENTER A SWEEPSTAKES OFFERING WINNERS A VACATION INCLUDING TRAVEL ON A PRIVATE JET TO A PRIVATE ISLAND IN THE CARIBBEAN THE MOVIE BEGINS WITH A GROUP OF VISITORS MAKING SUCH A VOYAGE AMC ENTERTAINMENT IS STARTING TO OFFER MINGLES NIGHTS FOR SINGLES ON SUNDAYS AT SOME OF ITS THEATERS FOR THE REGULAR TICKET PRICE A PATRON GETS FREE POPCORN AND SODA AND ADMITTANCE TO AN HOURLONG RECEPTION BEFORE THE MOVIE 9305170076 930517 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 7/8 LOW 3 1/8 NEAR CLOSING BID 3 3/16 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 310 150 TO 179 DAYS 312 180 TO 239 DAYS 317 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 311 30 DAYS 312 60 DAYS 313 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 263 TWO MONTHS 265 THREE MONTHS 270 SIX MONTHS 297 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 307 THREE MONTHS 315 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 303 60 DAYS 304 90 DAYS 305 120 DAYS 308 150 DAYS 309 180 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 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 5/16 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 10 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 289 13 WEEKS 299 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 725 60 DAYS 735 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 724 60 DAYS 734 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 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 9305170075 930517 BUSINESS BRIEF BANGKOK BANK LTD FIRSTQUARTER NET ROSE 53 INTERESTRATE MARGINS CITED BANGKOK BANK LTD ATTRIBUTED ITS 53 GAIN IN NET INCOME IN THE FIRST QUARTER TO WIDER INTERESTRATE MARGINS THE SALVAGING OF DOUBTFUL DEBTS AND STRONG CREDIT GROWTH FUNDED IN PART BY OFFSHORE BORROWINGS NET INCOME OF 371 BILLION BAHT 1473 MILLION OR 371 BAHT A SHARE ANNOUNCED IN BANGKOK THAILAND OUTSTRIPPED A 45 PROFIT INCREASE BBL POSTED IN 1992 AND MADE ITS 1993 EARNINGS TARGET OF 125 BILLION BAHT 1 EASILY ACHIEVABLE SAID ANDREW HOUSTON BANKING ANALYST AT JARDINE FLEMING THANAKOM SECURITIES LTD SOME ANALYSTS HAD PREDICTED THAI BANKS WOULD FACE DIFFICULT CONDITIONS THIS YEAR WITH INTEREST RATES FALLING AND DEPOSIT RATES INCHING UP AS BANKS FOUGHT TO INCREASE CAPITAL AND LENDING BUT IT APPEARS THOSE DIFFICULTIES FAILED TO MATERIALIZE AT LEAST IN THE FIRST QUARTER BBL SAID IT MAINTAINED ITS INTERESTRATE MARGIN BY BORROWING OFFSHORE AND DIDN'T COMPETE FOR DOMESTIC DEPOSITS 9305170074 930517 AIR FORCE TO SET LIMITS ON USE OF C141 PLANES TOP OFFICIAL URGES BUYING C17S FROM MCDONNELL AND SOME BOEING JETS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL A SENIOR AIR FORCE COMMANDER IS ORDERING IMMEDIATE LIMITS ON USE OF ABOUT 260 AGING C141 MILITARY TRANSPORTS IN A MOVE HE SAID SIGNALS THE URGENCY OF ACQUIRING MCDONNELL DOUGLAS CORP'S CONTROVERSIAL C17 PLANE AND OTHER AIRCRAFT GEN RONALD FOGLEMAN CHIEF OF THE AIR MOBILITY COMMAND SAID THE AIR FORCE C141 FLEET IS BEING RESTRICTED TO CARRYING 74 OF ITS LOAD LIMIT BECAUSE OF NEW CONCERNS THAT INVESTIGATORS RAISED LATE LAST WEEK ABOUT CRACKS IN WING STRUCTURES IN AN INTERVIEW THE GENERAL ALSO CONFIRMED HE IS SERIOUSLY CONTEMPLATING A NEED FOR AS MUCH AS 5 BILLION WORTH OF BOEING CO COMMERCIAL JETS TO REPLACE PART OF THE FLEET OF LOCKHEED CORP C141 TRANSPORTS GEN FOGLEMAN SAID BUYING THE BOEING JETS WON'T DIMINISH DEMAND FOR THE C17 BECAUSE EACH REPLACES A DIFFERENT C141 MISSION THE SERVICE WANTS TO BUY 120 C17S FOR ABOUT 40 BILLION SOME INDUSTRY OFFICIALS BELIEVE BUYING BOEING JETS WOULD REDUCE THE NEED FOR C17S THE GENERAL'S ACTION AND REMARKS CAP A FRENZIED TWO WEEKS OF DEVELOPMENTS SWIRLING AROUND THE POLITICALLY CHARGED PLANS TO REBUILD AIRLIFT READINESS IN THE AIR FORCE THE C141 TRANSPORTS WHICH WERE BUILT PRIMARILY IN THE 1960S NOW OFFER ONE OF THE SERVICE'S PRIMARY MEANS FOR PROVIDING AIR DROPS AND ARE CENTRAL TO ITS DELIVERY OF TROOPS AND SUPPLIES AROUND THE GLOBE LOCKHEED HAS PROPOSED REBUILDING 178 OF THEM WITH A 44 BILLION SERVICELIFE EXTENSION PROGRAM LAST WEEK BOEING CONFIRMED IT PROPOSED SELLING 33 MODIFIED 747 JUMBO JETS OR 58 WIDEBODY 767S INSTEAD THE RELATIVELY INEXPENSIVE READILY AVAILABLE BOEING JETS WOULD SUFFICE ONLY FOR MOVING TROOPS AND PALLETS OF CARGO THROUGH DEVELOPED AIRPORTS AT SOME DESTINATIONS THE LEAST EXOTIC FUNCTION OF THE C141 THE ADVANCED C17 IS DESIGNED NOT ONLY FOR AIR DROPS BUT TO FLY FARTHER THAN THE C141 CARRY TANKS AND OTHER HEAVY EQUIPMENT AND LAND ON UNIMPROVED RUNWAYS BUT THE C17 IS MIRED IN CRITICISM FROM PROBLEMS THAT HAVE SLOWED ITS DEVELOPMENT AND COST MCDONNELL DOUGLAS MORE THAN 1 BILLION IN LOSSES WHILE THAT COMPANY MAINTAINS THE PROBLEMS HAVE BEEN CORRECTED A TOP PENTAGON ACQUISITION OFFICIAL HAS ORDERED A COMPLETE REVIEW OF THE PLANE AND PLANS TO USE IT BECAUSE HE STILL SEES THE PROGRAM AS TROUBLED THE LATEST RESTRICTIONS ON THE C141 WERE ADVISED IN A PRELIMINARY REPORT TO GEN FOGLEMAN FROM A CONGRESSIONALLY MANDATED SCIENTIFIC ADVISORY BOARD STUDY THE BOARD ASSEMBLED EARLIER THIS YEAR TO STUDY THE STRUCTURAL STATE OF THE AIRPLANES THE AIR FORCE HAD LOOKED INTO THE PROBLEM EARLIER THOUGH OFFICIALS AT THAT TIME DECIDED FURTHER ACTION WASN'T NECESSARY BUT THE RECENT INVESTIGATION FOUND THAT CRACKS FORMING IN WEEP HOLES IN STRUCTURES SEPARATING FUEL TANKS IN THE PLANE'S WINGS CAN SPREAD AND CAUSE FURTHER DAMAGE TO THE WING SKIN THAT THREATENS THE SAFETY OF THE AIRCRAFT INSPECTIONS AND IF NECESSARY REPAIRS HAVE BEEN ORDERED BEFORE THE PLANES CAN FLY AT FULL CAPACITY AGAIN IT IS INDICATIVE OF THE FACT THAT IT IS AN OLD AIRPLANE SAID GEN FOGLEMAN CRACKING PROBLEMS IN OTHER C141 AREAS PROMPTED RESTRICTIONS TO BE INVOKED JUST PRIOR TO THE PERSIAN GULF WAR THE AIR FORCE SPOKESMAN SAID THE REPLACEMENT C17 IS NOT OUT OF THE WOODS POLITICALLY SAID THE GENERAL ADDING THAT IT'S GOT SO MANY CRITICS BUT HE SAID HE BELIEVES ITS MANAGERIAL STRUCTURAL AND TECHNICAL PROBLEMS ARE CORRECTED AND CALLED IT THE CORE AIRLIFTER FOR RESPONDING TO GLOBAL HUMANITARIAN AND MILITARY NEEDS HE SAID HE BELIEVES THE DEFENSE ACQUISITION BOARD REVIEW CALLED FOR BY MR DEUTCH WILL CONFIRM THAT VIEW WHILE THE REVIEWS WILL LOOK AT CUTTING THE TOTAL C17 BUY GEN FOGLEMAN DISCLOSED THAT ONE CENTRAL WAR PLAN CALLS FOR USE OF A READY BRIGADE OF A TOTAL 102 OF THE JETS AND THAT ASSUMES NO JETS ARE NEEDED FOR OTHER TASKS DEPENDING ON THE RESULTS OF THE DEFENSE BOARD REVIEW AND OF A SEPARATE PENTAGONORDERED BOTTOMUP REVIEW OF ALL MILITARY NEEDS GEN FOGLEMAN SAID THE LOCKHEED PROPOSAL TO EXTEND THE LIFE OF SOME C141 TRANSPORTS MAY BECOME VERY ATTRACTIVE HE SAID A SEPARATE LOCKHEED PROPOSAL TO RESTART PRODUCTION OF ITS LARGER C5 TRANSPORTS DOES NOT STRIKE HIM AS ONE THAT MAKES A LOT OF SENSE IF YOU'RE THINKING LONG TERM AL HANSEN LOCKHEED'S VICE PRESIDENT OF AIRLIFT PROGRAMS SAID THE COMPANY IN A LETTER TO THE AIR FORCE FOUR MONTHS AGO ADVISED THAT THE NEW CRACKING PROBLEMS WERE SEVERE AND THE COMPANY RECOMMENDED IMMEDIATE INSPECTIONS DISAGREEING WITH THE AIR FORCE'S DECISION MR HANSEN ALSO SAID THAT THE COMPANY HAS PROPOSED THE SERVICELIFE EXTENSION PROGRAM PARTLY BECAUSE OF ITS CONCERN ABOUT THE CRACKING HE SAID LOCKHEED MANAGERS BELIEVE THE PROGRAM PROVIDES A REASONABLE SOLUTION TO THE C141 PROBLEM AND APPEARS TO BE A LESS EXPENSIVE ALTERNATIVE THAN BUYING BOEING JETS LOCKHEED HAS PROPOSED A RESTART OF THE C5 LINE ONLY AS AN ALTERNATIVE FOR THE AIR FORCE IN THE EVENT C17 PURCHASES ARE CUT BACK OR KILLED BY CONGRESS HE SAID MR HANSEN SAID THAT IN RESPONSE TO QUERIES FROM CONGRESS AND THE DEFENSE DEPARTMENT LOCKHEED HAS ESTIMATED IT COULD PRODUCE ITS C5 FOR 185 MILLION TO 200 MILLION PER TRANSPORT GEN FOGLEMAN SAID BOEING'S PROPOSAL TO THE AIR FORCE HAS APPEAL AS AUGMENTATION TO THE C17 BECAUSE THE BOEING PLANES REQUIRE SMALLER CREWS USE NEW TECHNOLOGIES AND MEET NOISE AND POLLUTION REQUIREMENTS DURING THE PERSIAN GULF WAR HE SAID THE AIR FORCE GOT NEW EXPERIENCE WITH COMMERCIAL JETS AND LOADING EQUIPMENT WHEN IT USED THE JETLINERS PROVIDED TO THE SERVICE BY AIRLINES UNDER THE CIVIL RESERVE AIR FLEET PROGRAM 9305170073 930517 HEARD ON THE STREET ABEX FACES BETTER DAYS AHEAD AFTER '92 LOSS SOME ANALYSTS SAY BUT OTHERS ARE SKEPTICAL BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL AS A HIGHRISK BUT INTERESTING SPECULATION CONSIDER ABEX NEVER HEARD OF IT THINK BACK TO THE LAST TIME YOU AMBLED THROUGH ONE OF THOSE MECHANIZED JETWAYS LEADING FROM THE AIRPORT INTO YOUR PLANE ABEX IS A LEADING MAKER OF JETWAYS BUT IT GETS MOST OF ITS REVENUE BY PRODUCING LANDING GEAR FOR A WIDE VARIETY OF PLANES IT ALSO MAKES BRAKE PADS FOR CARS AND TRUCKS THE HAMPTON NH COMPANY WENT INDEPENDENT IN JULY 1992 AFTER A SERIES OF OWNERSHIP SHIFTS INCLUDING A STINT AS PART OF HENLEY GROUP EVEN THOUGH IT HAS 700 MILLION IN ANNUAL SALES ALMOST NO WALL STREET ANALYSTS FOLLOW IT ABEX SHARES FETCHED AS MUCH AS 9 7/8 IN THEIR FIRST FEW DAYS OF TRADING ON THE NEW YORK STOCK EXCHANGE BUT AS THE AEROSPACE INDUSTRY HAS GONE THROUGH A SPASM OF CANCELED ORDERS THE STOCK HAS PLUMMETED TO 4 AT THAT PRICE IT'S A FLAMING BARGAIN FOR LONGTERM HOLDERS SOME KNOWLEDGEABLE MONEY MANAGERS SAY THEY HASTEN TO ADD THOUGH THAT ABEX SHARES ARE RISKY AND SPECULATIVE SIEGLER COLLERY IN NEW YORK HAS SNAPPED UP CLOSE TO A MILLION SHARES OF ABEX OR JUST UNDER 5 THE STOCK IS VERY DEPRESSED SAYS PETER COLLERY A PRINCIPAL OF THE FIRM I DON'T THINK IT'S LIKELY TO BE A WIPEOUT BUT IT SELLS AT NEARBANKRUPTCY PRICES ABEX HAD A LOSS OF 203 MILLION LAST YEAR BUT JAMES R MCCANN OF MERRILL LYNCH THE ONLY WALL STREET ANALYST WITH AN EARNINGS ESTIMATE EXPECTS ABEX TO REPORT EARNINGS OF 40 CENTS A SHARE THIS YEAR THE COMPANY SAYS IT'S TOO EARLY IN THE YEAR TO COMMENT ON THAT ESTIMATE FIRSTQUARTER EARNINGS ARE SCHEDULED TO BE ANNOUNCED TODAY IN ANY EVENT ABEX'S CASH FLOW IS CONSIDERABLY HIGHER THAN ITS REPORTED EARNINGS MR COLLERY AND HIS PARTNER GARY SIEGLER SAY ABEX WOULD HAVE EARNED 114 A SHARE LAST YEAR IF A FEW KEY ACCOUNTING ADJUSTMENTS WERE MADE ONE IS TO ADJUST THE INTEREST EXPENSE SO IT REFLECTS THE CURRENT DEBT LOAD WHICH AT 336 MILLION IS BAD ENOUGH RATHER THAN THE PRIOR DEBT LEVEL WHICH WAS WORSE FROM A CASH FLOW PERSPECTIVE THIS THING IS EXTREMELY CHEAP SAYS SIEGLER COLLERY ANALYST CURTIS MACNGUYEN HE HOPES FOR CASH FLOW OF ABOUT 150 A SHARE THIS YEAR SEVERAL OTHER INSTITUTIONS KNOWN FOR SKILL IN BUYING THE STOCK MARKET'S DISTRESSED MERCHANDISE ARE IN THE STOCK AMONG THE HOLDERS ACCORDING TO RECENT GOVERNMENT FILINGS ARE MICHAEL PRICE'S MUTUAL SERIES FUNDS JACK NASH'S ODYSSEY PARTNERS AND LEON COOPERMAN'S OMEGA ADVISORS ONE THING SCARING INVESTORS AWAY FROM ABEX IS THE OTHER LIABILITIES OF 348 MILLION IT CARRIES BESIDES ITS REGULAR DEBT SOME 142 MILLION OF THAT AMOUNT IS SET ASIDE IN A RESERVE FOR A TAX DISPUTE INVOLVING A PREDECESSOR COMPANY BUT BACKERS OF THE STOCK EXPECT THE DISPUTE TO BE SETTLED FOR FAR LESS ABEX IS ALSO ON THE HOOK TO BUY CERTAIN REAL ESTATE PROPERTIES FROM BOLSA CHICA THE OTHER SUCCESSOR COMPANY TO HENLEY GROUP IF BOLSA CHICA DEMANDS THAT IT DO SO BUT ONE MONEY MANAGER WHO OWNS THE STOCK SAYS THE CONTRACTUALLY SPECIFIED PRICE IS 85 CENTS PER DOLLAR ON A FIRESALE VALUATION THERE'S ALMOST NO REASON BOLSA CHICA WOULD TAKE SUCH A LOW PRICE HE SAYS SO THE 95 MILLION IN CASH THAT ABEX IS HOLDING FOR THAT CONTINGENCY WILL SOMEDAY BE FREED UP FOR BETTER THINGS SOME MANAGERS AND ANALYSTS EXPRESS WORRY ABOUT ABEX CHAIRMAN MICHAEL DINGMAN WHO IS FAMOUS FOR PUTTING COMPANIES TOGETHER AND TAKING THEM APART LIKE TINKER TOYS MR DINGMAN'S VENTURES MADE CONSIDERABLE MONEY FOR INVESTORS YEARS AGO BUT INVESTORS IN HIS HENLEY GROUP HAVEN'T FARED WELL MR DINGMAN FREQUENTLY EMPHASIZES A COMPANY'S ASSETS RATHER THAN EARNINGS LATELY INVESTORS ARE LESS ENTHUSIASTIC ABOUT ASSET PLAYS A SHRINKING DEFENSE BUDGET IS ALSO HURTING ABEX IN 1992 IT GOT ABOUT 27 OF ITS REVENUE FROM THE GOVERNMENT MAINLY THE MILITARY THAT WAS DOWN FROM 34 TWO YEARS BEFORE WITH ALL THESE WOES ABEX ISN'T MY KIND OF STOCK SAYS FRED GORDON OF PLAIN TALK INVESTOR NEWSLETTER HE SAYS THAT BETWEEN THE DEFENSE AND AEROSPACE BUSINESSES IT'S HARD TO TELL WHICH IS THE FRYING PAN AND WHICH IS THE FIRE IF YOU'RE A BUYER AND YOU'RE ON HEART MEDICATION I WOULD TAKE A DOUBLE DOSE HE SAYS PALPITATIONS ASIDE THE STOCK AT LEAST HAS STOPPED FALLING IT HAS HELD AT ROUGHLY 4 SINCE JANUARY AND FOR THE PAST TWO MONTHS A RUMOR HAS BEEN CIRCULATING THAT COULD MAKE ABEX A MORE INTRIGUING SPECULATION BF GOODRICH'S AEROSPACE UNIT WHICH ALREADY MAKES BRAKES AND WHEELS FOR PLANES HAS HINTED IT WANTS TO GET INTO LANDING GEAR AS WELL RATHER THAN START FROM SCRATCH IT COULD PRESUMABLY BUY ALL OR PART OF ABEX BOTH COMPANIES DECLINE TO COMMENT ON THE RUMOR 9305170072 930517 BUSINESS BRIEF LADBROKE GROUP PLC HILTON INTERNATIONAL IS SEEN RETURNING TO STRONG PROFITS LADBROKE GROUP PLC LONDON SAID ITS HILTON INTERNATIONAL HOTELS BUSINESS WOULD RETURN TO A PEAK LEVEL OF PROFITS AS WORLD ECONOMIC CONDITIONS IMPROVE CHAIRMAN CYRIL STEIN WRITING IN THE LEISURE GROUP'S ANNUAL REPORT AND ACCOUNTS SAID WE HAVE CONFIDENCE IN THE POTENTIAL OF OUR BUSINESSES AND IN PARTICULAR THAT HILTON WILL ACHIEVE ITS PREVIOUS PEAK LEVEL OF PROFITS WITH A RETURN TO MORE NORMAL ECONOMIC CONDITIONS WORLDWIDE MR STEIN SAID HOWEVER THAT ALTHOUGH THE BUSINESS WAS PERFORMING SATISFACTORILY IT CONTINUES TO BE AFFECTED BY THE RECESSION IN SOME COUNTRIES WHILE IMPROVED OPERATING RESULTS WERE BEING OFFSET BY INCREASED INTEREST COSTS ADDRESSING OTHER LADBROKE OPERATIONS MR STEIN SAID THAT RESULTS FROM RACING AND PROPERTY WERE SHOWING SIGNIFICANT IMPROVEMENTS FROM A YEAR EARLIER 9305170071 930514 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 9305170070 930517 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN LEADERS OF NINE FORMER SOVIET REPUBLICS DECIDED AT A MOSCOW SUMMIT TO FORM AN ECONOMIC UNION TURKMENISTAN ABSTAINED SAYING IT WANTED MORE TIME TO STUDY ANY IDEAS ON COORDINATING TRADE AND FINANCES THE DECLARATION OF INTENT MARKED A HOPEFUL SIGN FOR THE 10NATION COMMONWEALTH OF INDEPENDENT STATES PLAGUED BY DISPUTES AND INACTION SINCE ITS FOUNDING IN DECEMBER 1991 MEMBERS STRUGGLING WITH FREEMARKET REFORMS AND SHRUNKEN TRADE ALSO INCLUDE RUSSIA UKRAINE BELARUS KAZAKHSTAN ARMENIA UZBEKISTAN KYRGYZSTAN TAJIKISTAN AND MOLDOVA STILL THE ACCORD COULD BE IGNORED OR GUTTED BY THE JULY DEADLINE FOR UNIFICATION PROPOSALS RANGING FROM CUSTOMS TO BANKING AND LAW AS MEMBERS FEAR ANY ENCROACHMENT ON THEIR SOVEREIGNTY ESPECIALLY BY MOSCOW AND THE RESULT COULD BE UNEVEN AS MEMBERS MAY VARY THE DEGREE OF PARTICIPATION IN THE UNION IN RUSSIA PRESIDENT BORIS YELTSIN ORDERED SPEEDIER SELLOFFS OF STATE COMPANIES THE STATE AND EMPLOYEES OFTEN HAVE KEPT SHARES OF REORGANIZED ENTERPRISES OF WHICH AT LEAST 29 NOW MUST BE SOLD TO THE PUBLIC WITHIN THREE MONTHS OF GOING PRIVATE BIG EUROPEAN CARRIERS' TOTAL LOSSES LAST YEAR DEEPENED TO 135 BILLION FROM 11 BILLION IN 1991 THE 23MEMBER ASSOCIATION OF EUROPEAN AIRLINES SAID AN 11 INCREASE IN PASSENGERS FAILED TO OFFSET EFFECTS OF LOWER FARES AND HIGH INTEREST CHARGES AIRPLANES FLEW WITH 658 OF SEATS FULL UP SLIGHTLY FROM 647 IN 1991 BUT CONSUMER DEMAND ON EUROPEAN ROUTES WAS STAGNANT WHILE A FARE WAR UNDERCUT THE IMPACT OF STRONGER TRANSATLANTIC DEMAND BRITAIN HAD FAR FEWER CORPORATE FAILURES IN THE FIRST QUARTER THAN EXPECTED INSOLVENCIES FELL 54 TO A SEASONALLY ADJUSTED 5705 FROM 6029 IN THE FOURTH QUARTER AND DECLINED 16 FROM 5796 A YEAR EARLIER FAILURES PEAKED AT 6699 IN THE 1992 THIRD QUARTER THE BRITISH CHAMBER OF COMMERCE SAID ITS LATEST QUARTERLY SURVEY BASED ON DEPARTMENT OF TRADE AND INDUSTRY DATA MAY PROVIDE EVIDENCE THAT THE ECONOMIC TIDE IS TURNING PERHAPS EVEN QUICKER THAN MANY MAY HAVE EXPECTED FOR BRITAIN TO EMERGE FROM RECESSION CHINA'S CENTRAL BANK RAISED INTEREST RATES THOUGH MODESTLY IN A BID TO COOL INFLATION WITHOUT BRAKING THE ECONOMY WHICH COULD GROW 8 THIS YEAR INFLATION HIT AN ANNUAL RATE OF ALMOST 16 IN 35 CITIES IN THE FIRST QUARTER SAVINGS HAVE DECLINED AS INTEREST RATES RANGED FROM 27 TO 69 AND LENDING FAR EXCEEDED GOVERNMENT TARGETS RATES ON BANK DEPOSITS WERE INCREASED BY AN AVERAGE OF 119 PERCENTAGE POINTS AND ON BANK SAVINGS BY 218 POINTS WHILE BANK LENDING RATES ROSE AN AVERAGE OF 082 POINT RATES ON THREEYEAR TREASURY BONDS WERE RAISED TO 1252 FROM 10 AND ON FIVEYEAR BONDS TO 1406 FROM 11 A RECORD 118 MILLION JAPANESE TRAVELED ABROAD LAST YEAR UP 11 FROM A YEAR EARLIER WHEN GULF WAR FEARS DEPRESSED GLOBAL TOURISM AND THEY SPENT 354 BILLION ALSO A NEW HIGH THE REBOUND OCCURRED EVEN AFTER A TOURISM SLUMP THAT BEGAN LAST SEPTEMBER BECAUSE OF JAPAN'S ECONOMIC SLOWDOWN FAVORITE DESTINATIONS WERE THE US WITH 38 MILLION VISITORS SOUTH KOREA 14 MILLION AND HONG KONG 13 MILLION OF THE TOTAL TRAVELERS 2 MILLION OR 17 WERE WOMEN IN THEIR 20S MEANWHILE FOREIGN TOURISTS SPENT 305 BILLION IN JAPAN LAST YEAR MOST WERE FROM SOUTH KOREA TAIWAN AND THE US ALMOST HALF OF DANISH VOTERS NOW FAVOR THE EUROPEAN COMMUNITY UNITY TREATY THEY REJECTED BEFORE IT WAS REVISED TO ALLOW EXEMPTIONS FOR THE COUNTRY DENMARK WILL HOLD A SECOND REFERENDUM TOMORROW ON EC MONETARY ECONOMIC AND POLITICAL INTEGRATION IN WEEKEND GALLUP SURVEYS SUPPORT STOOD AT 49 OPPOSITION WAVERED BETWEEN 32 AND 33 WITH 14 UNDECIDED OF THE 12 EC MEMBERS ONLY DENMARK AND BRITAIN HAVEN'T APPROVED THE TREATY THE JAPANESE CABINET APPROVED AND SENT TO LEGISLATORS A SUPPLEMENTARY BUDGET OF 2189 TRILLION YEN 1957 BILLION TO HELP FUND THE RECORD 132 TRILLIONYEN ECONOMIC STIMULUS PACKAGE UNVEILED LAST MONTH THE SUPPLEMENTARY BUDGET FOR THE YEAR THAT BEGAN APRIL 1 BRINGS TOTAL GOVERNMENT SPENDING TO 75544 TRILLION YEN IT CALLS FOR OUTLAYS OF 2221 TRILLION YEN ON PUBLIC WORKS AND RELATED PROJECTS SUCH AS PURCHASES OF EQUIPMENT AND BUILDINGS ON THE REVENUE SIDE THE PLAN CALLS FOR THE GOVERNMENT TO FLOAT 2246 TRILLION YEN OF CONSTRUCTION BONDS IT ESTIMATES REVENUE OF 8871 BILLION YEN FROM OTHER SOURCES SUCH AS THE SALE OF COINS TO COMMEMORATE NEXT MONTH'S ROYAL WEDDING TOTAL CONSTRUCTION BONDS OF 10376 TRILLION YEN WOULD REPRESENT 14 OF OVERALL REVENUE FAR EXCEEDING LAST YEAR'S GOAL OF LOWERING DEPENDENCE ON BONDS TO A MAXIMUM OF 5 OF REVENUE THE STIMULUS PACKAGE ALSO INCREASES FUNDS FOR STATE LENDING AGENCIES TO AID HOUSING CONSTRUCTION AND SMALL BUSINESS INDONESIA WILL SELL AS MUCH AS 60 OF THE SHARES OF SOME OF ITS 240 STATEOWNED COMPANIES ON INTERNATIONAL STOCK MARKETS THE PRIVATIZATION IS INTENDED TO RAISE HARD CURRENCY TO REPAY DEBT AND IMPROVE THE ECONOMY MALAYSIA WILL INTRODUCE LEGISLATION ORDERING WHIPPINGS FOR WHITECOLLAR CRIMES SUCH AS FRAUD TO CAUSE LOSS OF FACE AND SERVE AS A DETERRENT 9305170069 930517 INTERNATIONAL FOREIGN INVESTORS JUMPING AT MEXICO'S INVITATION TO HELP BOOST POWER CAPACITY BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL NAVA MEXICO ELECTRICITYHUNGRY MEXICO HAS BEGUN TO OPEN THE DOOR TO FOREIGN INVESTMENT IN POWER GENERATION AND COMPANIES ARE RUSHING TO GET IN THE FIRST MAJOR OPENING WAS THE 16 BILLION PRIVATIZATION OF A PLANT CALLED CARBON II HERE NOT FAR FROM THE TEXAS BORDER IN THE MEXICAN STATE OF COAHUILA CARBON II IS A LANDMARK DEAL SAYS JOHN VELLA AN EXECUTIVE WITH MISSION ENERGY CO A UNIT OF LOS ANGELESBASED SCECORP ONE OF THE NEW COOWNERS OF THE COALFIRED PLANT WE SEE THIS AS A BREAKTHROUGH IN OPENING UP THE MARKETPLACE THE 1400MEGAWATT PROJECT NOW HALF COMPLETE WILL BE OWNED AND OPERATED BY MISSION ENERGY WHICH HAS A 49 STAKE AND GRUPO ACERERO DEL NORTE SA A MINING CONCERN THAT WILL USE ABOUT 120 MEGAWATTS TO POWER A STEEL MILL THE REST OF THE POWER WILL BE SOLD TO THE GOVERNMENT UTILITY UNDER A 30YEAR CONTRACT THE MEXICAN CONSTITUTION RESERVES FOR THE STATE THE EXPLOITATION OF HYDROCARBONS AND ELECTRICITY GENERATION TRANSPORTATION AND DISTRIBUTION BUT IN AN EFFORT TO FUND THE EXPANSION OF MEXICO'S ELECTRICITY GRID PRESIDENT CARLOS SALINAS DE GORTARI WON APPROVAL OF A LAW LAST DECEMBER THAT ALLOWS PRIVATE INVESTMENT IN ELECTRICAL PLANTS ON THE CONDITION THAT THE ELECTRICITY BE SUPPLIED AS A PRIVATE SERVICE TO THE PRIVATE SECTOR THE CONSTITUTION RESERVES THE PUBLIC SERVICE OF ELECTRICITY PRODUCTION TO THE STATE UNDER THE NEW LAW THREE NEW AREAS OF INDEPENDENT POWER PRODUCTION INCLUDING THE CARBON II OPERATION ARE CONSIDERED PRIVATE SERVICE GENERATION THE LAW TOUCHED OFF A BURST OF ACTIVITY MEXICO HAS 35 BILLION IN PRIVATELY FUNDED POWER PLANTS IN THE WORKS FACED BACK HOME WITH NEARLY FLAT ELECTRICITY GROWTH THROUGH THE YEAR 2000 US COMPANIES ARE EAGER TO ENTER THE MEXICAN MARKET JOE TONDU WHO HEADS TONDU ENERGY SYSTEMS INC A HOUSTON FIRM HAS BEEN HUNTING FOR WORK IN MEXICO FOR MORE THAN A YEAR MEXICO IS WAY WAY UNDERELECTRIFIED EVERYBODY LOOKS ACROSS THE FENCE AND SAYS WHOA HUGE POSSIBILITIES' HE SAYS MEXICO HAS ABOUT 27500 MEGAWATTS ON ITS GRID ROUGHLY THE SAME AS OHIO IT WANTS TO ADD 17000 MEGAWATTS BY 2000 ACCORDING TO A RECENT PROSPECTUS BY THE GOVERNMENTRUN UTILITY IN ADDITION TO THE CARBON II PLANT A CONSORTIUM IS PLANNING A 600 MILLION 700MEGAWATT PLANT IN SAMALAYUCA ACROSS THE BORDER FROM EL PASO TEXAS GENERAL ELECTRIC CO EL PASO NATURAL GAS CO HOUSTONBASED COASTAL CORP ICA SA WHICH IS MEXICO'S LARGEST CONSTRUCTION FIRM AND SAN FRANCISCOBASED BECHTEL GROUP ARE MEMBERS OF THE CONSORTIUM DOZENS OF OTHERS INCLUDING ENRON CORP OF HOUSTON SAN DIEGO GAS & ELECTRIC CO SOUTHERN COS OF ATLANTA PUBLIC SERVICE ENTERPRISE GROUP INC OF NEWARK NJ AND CENTRAL & SOUTH WEST CORP OF DALLAS ARE ALSO BIDDING OR WAITING TO BID ON FUTURE PROJECTS MORE THAN 40 FIRMS FOR EXAMPLE HAVE EXPRESSED INTEREST IN THE NEXT BIG PROJECT ON THE YUCATAN PENINSULA 9305170068 930517 REVIEW & OUTLOOK EDITORIAL EUROPE GETS THE MESSAGE OVER A CENTURY AGO THE CHIEF ENGINEER AT THE BRITISH POST OFFICE WAS BROUGHT TO TESTIFY BEFORE A PARLIAMENTARY COMMISSION ON WHETHER AN AMERICAN INVENTION CALLED THE TELEPHONE DESERVED ANY NOTICE AS TOLD BY SCIENTIST AND AUTHOR ARTHUR C CLARKE THE ENGINEER WAS ASKED WHETHER ALEXANDER BELL'S INVENTION WILL BE OF ANY USE IN GREAT BRITAIN HE REPLIED NO SIR THE AMERICANS HAVE NEED OF THE TELEPHONE BUT WE DO NOT WE HAVE PLENTY OF MESSENGER BOYS GOVERNMENTS HAVE ALWAYS HAD A WEIRD RELATIONSHIP WITH TECHNOLOGY THEY ARE TYPICALLY SLOW TO RECOGNIZE THE IMPLICATIONS OF TECHNOLOGICAL ADVANCES AND QUICK TO ASSERT CONTROL OVER THEM ONCE THEY DO BUT THE FACT THAT BRITAIN HAS SCRAPPED ITS SLEEPY STATE TELECOMMUNICATIONS SYSTEM FOR ONE OF THE MOST OPEN AND PROGRESSIVE PRIVATE SYSTEMS IN EUROPE IS CAUSE FOR OPTIMISM IF THE TREND CONTINUES THE WORLD'S CHANCES GREATLY IMPROVE OF EFFICIENTLY INTEGRATING ITS COMMERCE AND FINANCES BRITAIN'S FELLOW EC MEMBERS SEEM TO BE SLOWLY GETTING THE MESSAGE EC TELECOMMUNICATIONS MINISTERS EMERGED FROM THEIR MEETING IN BRUSSELS LAST WEEK AFFIRMING THEIR COMMITMENT TO ENDING STATE MONOPOLIES AND OPENING EUROPE'S 134 BILLION TELECOMMUNICATIONS SERVICES INDUSTRY TO COMPETITION EVEN FRANCE BELGIUM AND SPAIN WHICH SO VOCIFEROUSLY OPPOSED LIBERALIZATIONS A COUPLE OF YEARS BACK ARE CAUTIOUSLY ON BOARD THIS IS CONSENSUS BORN OF SHEER NECESSITY THE INDUSTRY IS PERVADED BY MONOPOLIES AND PRICE DISTORTIONS A CALL FROM GERMANY TO BRITAIN CAN COST UP TO 30 MORE THAN A CALL FROM BRITAIN TO GERMANY NATIONAL RATES VARY WIDELY FROM COUNTRY TO COUNTRY AND RATES IN EUROPE AS A WHOLE DWARF US TELEPHONE CHARGES FOR THE SAME DISTANCES THE INDUSTRY BADLY NEEDS THE KIND OF INVESTMENT AND MANAGEMENT ONLY THE PRIVATE SECTOR CAN BRING IT A REPORT ORDERED BY THE EUROPEAN COMMISSION LAST YEAR CONCLUDED THAT ENDING CROSSBORDER MONOPOLIES AND INTRODUCING OTHER LIBERALIZATIONS WOULD LEAD TO A TRIPLING OF EUROPE'S TELECOM SERVICES MARKET IN TWO DECADES CURRENTLY BRITAIN IS THE ONLY EC COUNTRY WITH A TRULY LIBERALIZED TELECOM INDUSTRY DENMARK IS TO OPEN ITS MARKET NEXT YEAR AND ITALY IS INCHING TOWARD CUTTING ITS OWN SKYHIGH PHONE RATES IF GERMANY GOES THROUGH WITH ITS PLAN TO SELL A 49 STAKE IN THE STATE PHONE MONOPOLY DEUTSCHE BUNDESPOST TELEKOM IT SHOULD PROVIDE A PUSH FOR OTHER EUROPEAN GOVERNMENTS TO DO THE SAME GIVEN THE BENEFITS 1998 SEEMS LIKE A PARTICULARLY UNAMBITIOUS DEADLINE AT BASE MOST EUROPEAN GOVERNMENTS STILL RETAIN AN INSTINCT FOR NURTURING INDUSTRY AND A DISLIKE FOR FOREIGN THAT IS AMERICAN AND JAPANESE COMPETITION TO THIS END THEY POINTLESSLY RETAIN DIFFERING TECHNICAL STANDARDS EUROPE HAS CLEARLY MADE STRIDES TOWARD OVERCOMING THE SORT OF BLINKERED PROTECTIONISM THAT SACRIFICES TECHNOLOGICAL ADVANCES BUSINESS GROWTH AND CONSUMER INTEREST BUT IT NEEDS TO GO MUCH FURTHER IF EUROPE REALLY WANTS TO BE COMPETITIVE IN TELEVISION AND OTHER SERVICES IT CAN START BY LETTING THE COMPETITION IN ARTHUR C CLARKE WROTE AS THE CENTURY THAT SAW THE BIRTH OF BOTH ELECTRONICS AND OPTONICS DRAWS TO A CLOSE IT WOULD SEEM THAT VIRTUALLY EVERYTHING WE WOULD WISH TO DO IN THE FIELD OF TELECOMMUNICATIONS IS NOW TECHNICALLY POSSIBLE THE ONLY LIMITATIONS ARE FINANCIAL LEGAL AND POLITICAL 9305170067 930517 BUSINESS BRIEF NAVISTAR INTERNATIONAL CORP UNIT JOINS DETROIT DIESEL TO BUILD NATURALGAS ENGINE NAVISTAR INTERNATIONAL TRANSPORTATION CORP AND DETROIT DIESEL CORP SIGNED A DEVELOPMENT AND MANUFACTURING CONTRACT FOR A SPARKIGNITED NATURALGAS ENGINE FOR COMMERCIAL USE TERMS WERE NOT DISCLOSED DETROIT DIESEL WILL DEVELOP THE ENGINE FOR PRODUCTION AND WILL BE RESPONSIBLE FOR EMISSIONS CERTIFICATION AND PRODUCT RELEASE NAVISTAR WILL PRODUCE LONGBLOCK SUBASSEMBLIES AND DETROIT DIESEL WILL SUPPLY THE PARTS AND EQUIPMENT TO PRODUCE THE ENGINES PRODUCTION IS SCHEDULED TO BEGIN JAN 1 1995 NAVISTAR INTERNATIONAL TRANSPORTATION A UNIT OF NAVISTAR INTERNATIONAL CORP MAKES MEDIUMDUTY AND HEAVYDUTY TRUCKS DETROIT DIESEL IS A JOINT VENTURE OF PENSKE TRANSPORTATION HOLDINGS CORP AND GENERAL MOTORS CORP THAT MANUFACTURES DIESEL ENGINES 9305170066 930517 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED 11 NEW LISTINGS INCLUDING 10 INITIAL PUBLIC OFFERINGS AND THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED 12 NEW LISTINGS INCLUDING EIGHT INITIAL PUBLIC OFFERINGS THE BIG BOARD SAID IT BEGAN TRADING THE FOLLOWING INITIAL PUBLIC OFFERINGS THE AMERICAN DEPOSITARY SHARES OF CORPORACION BANCARIA DE ESPANA MADRID SPAIN A BANKING COMPANY UNDER AGR CROSS TIMBERS OIL CO FORT WORTH TEXAS AN OIL AND NATURAL GAS CONCERN UNDER XTO THE AMERICAN DEPOSITARY SHARES OF INDUSTRIE NATUZZI SPA BARI ITALY A FURNITURE UPHOLSTERY CONCERN UNDER NTZ ZURICH REINSURANCE CENTER HOLDINGS INC NEW YORK A REINSURANCE CONCERN UNDER ZRC THE AMERICAN DEPOSITARY SHARES OF ZENECA GROUP PLC LONDON A DEVELOPER AND MANUFACTURER OF ETHICAL PHARMACEUTICALS AGRICULTURAL CHEMICALSM SEEDS AND BIOLOGICAL PRODUCTS UNDER ZEN WI THE BIG BOARD ALSO BEGAN TRADING THE FOLLOWING FIVE CLOSEDEND MANAGEMENT INVESTMENT COMPANIES MUNIVEST CALIFORNIA INSURED FUND INC UNDER MVC MUNIVEST MICHIGAN INSURED FUND INC UNDER MVM MUNIVEST NEW JERSEY FUND INC UNDER MVJ MUNIVEST NEW YORK INSURED FUND INC UNDER MVY AND MUNIVEST FLORIDA FUND UNDER MVS ALL ARE BASED IN PLAINSBORO NJ THE FLORIDA FUND TRADES AS SHARES OF BENEFICIAL INTEREST THE BIG BOARD ALSO BEGAN TRADING THE SHARES OF RUST INTERNATIONAL INC BIRMINGHAM ALA A PROVIDER OF ENGINEERING AND CONSTRUCTION CONSULTING UNDER RST THE COMPANY FORMERLY TRADED OVERTHECOUNTER NATIONAL ASSOCIATION OF SECURITIES DEALERS ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NATIONAL MARKET SYSTEM LISTINGS AMTRAN INC INDIANAPOLIS AN AIRLINE CHARTER COMPANY UNDER AMTR CATALYST SEMICONDUCTOR INC SANTA CLARA CALIF A DESIGNER DEVELOPER AND MARKETER OF NONVOLATILE SEMICONDUCTORS UNDER CATS EVERGREEN MEDIA CORP IRVING TEXAS AN OWNER AND OPERATOR OF RADIO STATIONS UNDER EVGM TELO OPHTHALMIC PHARMACEUTICALS INC WOBURN MASS A DEVELOPER OF EYERELATED PHARMACEUTICALS UNDER TELR AUSPEX SYSTEMS INC SANTA CLARA CALIF A MAKER UNIX/NFSBASED FILE SERVER COMPUTERS UNDER ASPX QUAD SYSTEMS CORP HORSHAM PA A MAKER OF SURFACEMOUNT ASSEMBLY EQUIPMENT FOR CIRCUIT BOARDS UNDER QSYS LCI INTERNATIONAL INC WASHINGTON A LONGDISTANCE TELECOMMUNICATIONS CARRIER UNDER LCH OPTI INC SANTA CLARA CALIF A SUPPLIER OF CORE LOGIC CHIPSETS UNDER OPTI THE NATIONAL MARKET SYSTEM ALSO BEGAN TRADING THE FOLLOWING SHARES FORMERLY TRADED ON THE NASDAQ SMALLCAP MARKET CAMNET COMMUNICATIONS NETWORK INC VANCOUVER BC A TELECOMMUNICATIONS CONCERN UNDER CWKTF CASINO AMERICA INC BOCA RATON FLA A RIVERBOAT AND DOCKSIDE GAMBLING CONCERN UNDER CSNO JACKSON COUNTY FEDERAL BANK MEDFORD ORE A FEDERAL SAVINGS BANK UNDER JCFS FOR COMMON AND JCFSP FOR PREFERRED PIKEVILLE NATIONAL CORP PIKEVILLE KY A BANK HOLDING COMPANY UNDER PKVL THE AMERICAN STOCK EXCHANGE BEGAN TRADING OPTIONS ON NTN COMMUNICATIONS INC CARLSBAD CALIF AND THE CLASS B SHARES OF ADVANTA CORP CLAYMONT DEL THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING LONGTERM EQUITY ANTICIPATION SECURITIES OR LEAPS ON THE ITS GOLD/SILVER INDEX THE CHICAGO BOARD OPTIONS EXCHANGE SAID IT BEGAN TRADING OPTIONS ON MEDIA VISION TECHNOLOGY INC FREMONT CALIF COEUR D'ALENE MINES CORP COEUR D'ALENE IDAHO GERRITY OIL & GAS CORP DENVER KELLEY OIL CORP HOUSTON AND THE CLASS B SHARES OF ADVANTA CORP 9305170065 930517 BUSINESS BRIEF MINEBEA CO LOSS IS REPORTED FOR HALF SALE OF SUBSIDIARY IS CITED MINEBEA CO A MAJOR JAPANESE MAKER OF BALL BEARINGS REPORTED A NET LOSS OF 6482 BILLION YEN 5794 MILLION FOR THE SIX MONTHS ENDED MARCH 31 DUE TO EXTRAORDINARY LOSSES INCURRED BY THE SALE OF A SUBSIDIARY AND A CHANGE IN BOOKKEEPING HOWEVER THE COMPANY REPORTED A 4 INCREASE IN PRETAX PROFIT TO 418 BILLION YEN TO 401 BILLION YEN IN THE YEAREARLIER PERIOD MINEBEA HAD NET PROFIT OF 210 BILLION YEN THE EXTRAORDINARY LOSSES ARE DUE PRIMARILY TO THE COMPANY'S SALE OF ITS SEMICONDUCTOR UNIT NMB SEMICONDUCTOR CO TO NIPPON STEEL CORP UNDER THE AGREEMENT MINEBEA TOOK RESPONSIBILITY FOR 60 OF NMB'S DEBT OF 7360 BILLION YEN THE COMPANY ALSO ABSORBED 1478 BILLION YEN IN UNREALIZED LOSSES FROM ITS SECURITIES HOLDINGS THE LOSSES RESULTED FROM THE COMPANY'S DECISION TO CONVERT THE BOOK VALUE OF ITS SECURITIES HOLDINGS TO MARKET PRICES FROM PURCHASE PRICES 9305170064 930517 REVIEW & OUTLOOK EDITORIAL FORM A GOVERNMENT IT COULD BE THAT ONE REASON FOR BILL CLINTON'S FALLING APPROVAL RATING IN THE POLLS IS THAT ALMOST LITERALLY THERE'S NO ONE ELSE TO BLAME THE CLINTON ADMINISTRATION IS FAR FROM BEING A FULL HOUSE YET WITH MANY KEY POSITIONS UNFILLED MAYBE AFTER 100 DAYS IT'S TIME FOR THE HYPERACTIVE WHITE HOUSE TO TAKE A TIMEOUT AND GET A FULL TEAM ONTO THE FIELD OF THE 625 FEDERAL MANAGEMENT POSITIONS THAT REQUIRE SENATE CONFIRMATION ONLY 180 HAVE HAD PEOPLE NOMINATED FOR THEM ONLY 67 HAVE BEEN CONFIRMED HALF OF THE 14 FEDERAL DEPARTMENTS ARE BEING RUN BY A CABINET OFFICER WHO HAS HAD NONE OF HIS OR HER DEPUTIES CONFIRMED THE NEARBY TABLE COMPILED BY CONGRESSIONAL QUARTERLY TELLS THE TALE WHAT'S THE PROBLEM LARGELY THE LAG IS A FUNCTION OF THE ADMINISTRATION'S OBSESSION WITH DIVERSITY THE CLINTONITES SEEM DETERMINED TO PROVE THEMSELVES THE MOST POLITICALLY CORRECT HIRING HALL IN HISTORY IN FILLING POSITIONS AT THE NATIONAL SECURITY COUNCIL FOR EXAMPLE AN UNOFFICIAL NOAH'S ARK POLICY WAS THAT FOR EVERY WHITE MALE APPOINTED A WOMAN OR MINORITY SHOULD ALSO BE CHOSEN A NUMBER OF CRITICAL SLOTS AT THE EPA REMAIN VACANT BECAUSE DIRECTOR CAROL BROWNER'S CHOICES DON'T MESH WITH THE ETHNICITY GENDER AND GEOGRAPHY STANDARDS OF THE WHITE HOUSE THE EGG FILTER ALL THIS HAS GENERATED A KIND OF DIVERSITY GRIDLOCK AS THE WHITE HOUSE SCRAMBLES TO FIND PEOPLE WITH THE APPROPRIATE GENDER SKIN TONE OR SEXUAL PREFERENCE AND THEN WOO THEM TO WASHINGTON BECAUSE OF THE DELAYS THE ADMINISTRATION THIS MONTH HAD TO ASK CONGRESS FOR 32 MILLION TO HIRE TEMPORARY WORKERS TO HELP CLEAR THE PERSONNEL BACKLOG DESPITE THE INSTINCT TO CONCLUDE THE FEWER THE BETTER THE ABSENCES DO HAVE NEGATIVE EFFECTS HERE AND ABROAD GOVERNMENT CONTRACTS WORTH HUNDREDS OF MILLIONS AREN'T BEING LET OUT BECAUSE OF THE LACK OF CONFIRMED OFFICIALS VACANT AMBASSADORSHIPS ARE PILING UP WE ARE SYSTEMATICALLY TELLING OUR FRIENDS EVERYWHERE WE COULD CARE LESS ABOUT OUR RELATIONSHIPS WITH THEM SAYS RICHARD CAPEN JR WHO WAS US AMBASSADOR TO SPAIN UNTIL THIS YEAR OUR EMBASSIES ARE RUDDERLESS FOR THE MOST PART IT'S A DISGRACE ON CAPITOL HILL EVEN DEMOCRATS ARE MUTTERING ABOUT THE HOME ALONE STATUS OF MANY CABINET OFFICERS SENATOR PAT MOYNIHAN IS SO FRUSTRATED BY MR CLINTON'S FAILURE TO NAME A SOCIAL SECURITY COMMISSIONER THAT HE IS THREATENING TO HOLD UP OTHER APPOINTMENTS AT HEALTH AND HUMAN SERVICES REP BOB CARR CHAIRMAN OF A KEY TRANSPORTATION SUBCOMMITTEE SAYS SECRETARY FEDERICO PENA IS THE ONLY PERSON WHO CAN HELP HIM CUT THE 36 BILLION IN FUNDING REQUIRED BY THE BUDGET RESOLUTION THE VACANCIES HAVE BEEN ABSOLUTELY DISASTROUS HE TOLD CONGRESSIONAL QUARTERLY WE'VE GOT A SERIOUS PROBLEM HERE REP ROMANO MAZZOLI A KENTUCKY DEMOCRAT SAYS IT IS IMPOSSIBLE TO MAKE POLICY DECISIONS WHEN ONLY ACTING OFFICIALS ARE IN PLACE AFTER THE WORLD TRADE CENTER BOMBING MR MAZZOLI WANTED TO EXPEDITE SOME BILLS ON FOREIGNERS GAINING ASYLUM IN THE US WHEN CHRIS SALE THE ACTING COMMISSIONER OF THE INS ARRIVED ON CAPITOL HILL FOR A HEARING AN EXASPERATED MR MAZZOLI TOLD HER TO URGE ATTORNEY GENERAL RENO TO GET A PERMANENT COMMISSIONER WE SIMPLY CAN'T FUNCTION LIKE THIS HE SAID SIMILAR SENTIMENTS ARE HEARD FROM LEADERS IN THE FINANCIAL SERVICES SECTOR WHO ARE FRUSTRATED THAT SO FEW OF THE TOP BANKING OR S&L REGULATORS HAVE BEEN NAMED THIS HAS MADE IT DIFFICULT TO PASS THE FINAL INSTALLMENT OF THE S&L BAILOUT THE DIVERSITYDRIVEN SELECTION PROCESS SO FAR HAS BEEN MESSY AND MORE THAN A LITTLE MYSTERIOUS WHAT CONNECTION IS THERE BETWEEN ANY OF THESE PEOPLE AND THE POLITICS BILL CLINTON PRESENTED TO THE COUNTRY DURING THE CAMPAIGN ARE PEOPLE GETTING WHAT THEY THOUGHT THEY VOTED FOR OR SOMETHING QUITE DIFFERENT WE'VE LONG ARGUED THAT A PRESIDENT IS ENTITLED TO THE PEOPLE HE WANTS BUT WE HOPE THE SENATE'S QUESTIONERS HELP THE COUNTRY DISCOVER WHO THESE NEW DEMOCRATS ARE AND WHAT THEY REPRESENT BEYOND THE ATTRIBUTES OF THEIR BIRTH 9305170063 930517 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FORD MOTOR CREDIT CO 500 MILLION OF 675 NOTES DUE MAY 15 2005 PRICED AT 98625 TO YIELD 692 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 09 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO ASHLAND OIL INC 55 MILLION CUMULATIVE CONVERTIBLE PREFERRED SHARES PRICED AT 50 A SHARE TO YIELD 625 BATTLE MOUNTAIN GOLD CO TWO MILLION SHARES OF CONVERTIBLE PREFERRED STOCK WITH A LIQUIDATION PREFERENCE OF 50 A SHARE FOR A TOTAL OFFERING OF 100 MILLION THROUGH SALOMON BROTHERS INC AS LEAD MANAGER AND LEHMAN BROTHERS AS COMANAGER FEDERAL HOME LOAN MORTGAGE CORP 5001 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES GOLD 1539 IS BACKED BY FREDDIE MAC GOLD 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 148 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 195 BILLION OF STRIPPED MORTGAGE BACKED SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING TRUST 222 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES COMANAGERS OF STRIPS TRUST 222 INCLUDE KIDDER PEABODY & CO SALOMON BROTHERS INC GOLDMAN SACHS & CO LEHMAN BROTHERS AND BEAR STEARNS & CO THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 297 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 124 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 199397 IS BACKED BY THE AGENCY'S STRIPPED 30YEAR 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 805 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS FIRST INTERNATIONAL FUNDING CO SPECIALPURPOSE VEHICLE 500 MILLION OF GUARANTEED FLOATING RATE EURONOTES VIA SALOMON BROTHERS INTERNATIONAL LTD NOTES ISSUED BY DELAWAREREGISTERED CORPORATION GUARANTEED BY FINANCIAL SECURITY ASSURANCE THREEPART OFFERING COMPRISING 100 MILLION OF NOTES DUE JUNE 1996 WITH INTEREST FLOATING 45 BASIS POINTS ABOVE QUARTERLY LONDON INTERBANK OFFERED RATE FOR US DOLLARS 300 MILLION OF NOTES DUE JUNE 1998 WITH INTEREST FLOATING 55 BASIS POINTS ABOVE LIBOR AND 100 MILLION OF NOTES DUE JUNE 2000 WITH INTEREST FLOATING 65 BASIS POINTS ABOVE LIBOR ALL THREE ISSUES REOFFERED AT PAR NOTES MAY BE BACKED BY A VARIETY OF ASSETS FEES 05 POINT FOR FIVEYEAR AND SEVENYEAR NOTES 035 POINT FOR THREEYEAR NOTES STATE BANK OF NEW SOUTH WALES LTD AUSTRALIA 250 MILLION AUSTRALIAN DOLLARS OF 7 EUROBONDS DUE JUNE 30 1999 AT ISSUE PRICE 100625 VIA DEUTSCHE BANK AG LONDON YIELD 729 ANNUAL SPREAD 18 BASIS POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT NOTE GUARANTOR STATE OF NEW SOUTH WALES FEES 2 POINTS RABOBANK NEDERLAND NETHERLANDS 300 MILLION GUILDERS OF 6 3/4 EUROBONDS DUE JUNE 25 2003 AT ISSUE PRICE 1004 VIA RABOBANK NEDERLAND REOFFERED AT 996 TO YIELD 681 A MARGIN 20 BASIS POINTS ABOVE 6 1/2 STATE LOAN DUE APRIL 2003 FEES 1 POINT BAYERISCHE VEREINSBANK AG GERMANY 200 BILLION LIRE OF 108 EUROBONDS DUE JUNE 16 2003 AT ISSUE PRICE 102 VIA IMI BANK LUXEMBOURG SA YIELD 108 AT PAR BREAKEVEN PRICE FOR COMANAGING BANKS FEES 2 POINTS COUNCIL OF EUROPE RESSETTLEMENT FUND SUPRANATIONAL 100 MILLION CANADIAN DOLLARS OF 7 3/4 EUROBONDS DUE FEB 1 2001 AT ISSUE PRICE 100775 VIA DAIWA EUROPE LTD REOFFERED AT 992 TO YIELD 788 MARGIN 38 BASIS POINTS ABOVE INTEREPOLATED YIELD OF COMPARABLE CANADIAN GOVERNMENT BONDS FEES 1 7/8 TELECOM CORP OF NEW ZEALAND FINANCE LTD NEW ZEALAND 100 MILLION NEW ZEALAND DOLLARS OF 7 1/2 EUROBONDS DUE JULY 14 2003 AT ISSUE PRICE 10075 VIA HAMBROS BANK LTD YIELD 77 ANNUAL AT BREAKEVEN PRICE FOR COMANAGING BANKS FEES 2 1/8 SUMITOMO REALTY & DEVELOPMENT CO JAPAN 20 BILLION YEN OF 495 EUROBONDS DUE MAY 12 1998 AT ISSUE PRICE 10175 VIA DAIWA EUROPE LTD REOFFERED AT 1002 TO YIELD 49 BONDS STRUCTRUED TO SELL TO INVESTORS IN JAPAN AFTER REGULATORY HIATUS INITIAL INTEREST COUPON PERIOD RUNS FROM JUNE 10 1993 TO SEPT 10 1993 SECOND RUNS FROM SEPT 10 1993 TO MAY 12 1994 THEREAFTER INTEREST PAID ANNUALLY FEES 1875 POINTS SUMITOMO REALTY & DEVELOPMENT CO JAPAN 20 BILLION YEN OF 47 EUROBONDS DUE JULY 11 1997 AT ISSUE PRICE 101 3/8 VIA NOMURA INTERNATIONAL PLC REOFFERED AT PAR TO YIELD 47 BONDS STRUCTRUED TO SELL TO INVESTORS IN JAPAN AFTER REGULATORY HIATUS INITIAL INTEREST COUPON PERIOD RUNS TO SEPT 10 1993 AND SECOND RUNS FROM SEPT 10 1993 TO JULY 11 1994 THEREAFTER INTEREST PAID ANNUALLY FEES 1625 POINTS 9305170062 930517 COMMODITIES SURGING PRICE FOR GOLD IS BRINGING NEW LIFE TO THE COMEX AS SMALL INVESTORS BUY THE METAL BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SOARING PRICE OF GOLD IS BRINGING NEW PASSION TO THE ONCE MORIBUND COMMODITY EXCHANGE AT THE OPENING BELL FRIDAY THE DIN WAS DEAFENING AS TRADERS SHOUTED OUT VOLLEY AFTER VOLLEY OF BUY AND SELL ORDERS FOR GOLD FUTURES CONTRACTS THE MINIBULL MARKET TRIGGERED BY BIG INTERNATIONAL INVESTORS PLACING HUGE BETS ON A GOLD RALLY IS NOW BEING FUELED BY A RUSH OF SMALLER INVESTORS EAGER TO OWN THE PRECIOUS METAL AFTER 13 YEARS OF DECLINING OR STERILE PRICES AND THE RENEWED VOLATILITY IN GOLD PRICES DAILY SWINGS OF 5 TO 10 AN OUNCE HAVE REPLACED THE LETHARGIC 1 TO 2 MOVES OF PREVIOUS MONTHS IS LURING BACK TRADERS WHO LONG AGO LEFT THE GOLD PITS FOR THE HEADIER ACTION OF OTHER COMMODITIES THERE'S NEW LIFE IN THIS MARKET SAYS DAVID GREENBERG A 28YEAROLD TRADER WHO UNTIL RECENTLY DEVOTED ALL HIS ENERGY TO TRADING OIL FUTURES THESE ARE RADICAL INTRADAY MOVES I HAVEN'T BEEN HERE FOR A COUPLE OF YEARS BUT NOW GOLD HAS MOVED ENOUGH FOR ME TO COME IN EARLY DO SOME TRADING AND THEN GO BACK TO THE CRUDE PIT ALONG WITH THE VOLATILITY HAS COME INCREASED VOLUME TOO DAILY TRADING VOLUME IN GOLD FUTURES CONTRACTS HAS SOARED TO ABOUT 81000 A HUGE LEAP FROM THE NEARLY 24000 DAILY AVERAGE LAST YEAR AND THE ACTION ISN'T CONFINED TO GOLD THE SILVER PITS HAVE BEEN EQUALLY FRENETIC TRADERS SAY IT WAS ONLY A FEW MONTHS AGO THAT THE WORLD'S BIGGEST PRECIOUSMETALS FUTURES EXCHANGE WAS WORRIED ABOUT ITS VIABILITY GOLD HAD NOT SHOWN ANY SIGN OF SHAKING OFF ITS 13YEAR PRICE SLUMP AND PRICE VOLATILITY WAS ALMOST NONEXISTENT COMEX'S 772 MEMBERS FRETTED ABOUT THEIR EXCHANGE'S ABILITY TO SURVIVE SOME HOPED THAT ONE OF THE BIGGER COMMODITIES EXCHANGES WOULD AGREE TO MERGE THUS DEFRAYING COSTS AND PERHAPS OFFERING ACCESS TO NEW AND MORE LUCRATIVE CONTRACTS YET WHEN A SUITOR DID EMERGE THE POWERFUL CHICAGO BOARD OF TRADE PROPOSED A MERGER LAST JANUARY THE TERMS OFFERED WERE SO PALTRY THAT ANGRY FLOOR TRADERS ROUNDLY REJECTED IT THE PROPOSAL OFFERED NO MONEY AND DIDN'T AFFORD COMEX TRADERS ANY ACCESS TO CBOT'S HIGHLY SUCCESSFUL INTEREST RATE AND AGRICULTURAL FUTURES CONTRACTS NOW WITH THE SUDDEN SURGE IN GOLD COMEX MEMBERS HAVE BECOME DOWNRIGHT COCKY ABOUT POSSIBLE MERGERS A RECENT 10 MILLION TAKEOVER PROPOSAL BY THE NEW YORK MERCANTILE EXCHANGE FAILED TO DRAW MUCH INTEREST EVEN AFTER THE MERC DOUBLED ITS OFFER TO 20 MILLION SOME TRADERS AT THE COMEX WERE SAYING THAT THEY WOULDN'T CONSIDER ANYTHING LESS THAN 60 MILLION MERRIT LEVENBERG ONE OF FIVE COMEX NEGOTIATORS ENGAGED IN TALKS WITH THE NEW YORK MERC SAID AN OFFER OF MORE THAN 20 MILLION WILL ABSOLUTELY BE NECESSARY FOR THE TWO SIDES TO HAMMER OUT A TENTATIVE AGREEMENT THAT CAN BE PRESENTED TO BOTH MEMBERSHIPS FOR A VOTE BEFORE THE END OF JUNE THE TALKS ARE NOT STALLED WE'RE HOPING TO GET SOMETHING ON PAPER BEFORE THE SUMMER BEGINS TO BRING TO A VOTE MR LEVENBERG SAID MONEY IS WHAT DOES A DEAL HE ADDED BUT HE EMPHASIZED THAT AN AGREEMENT ON TRADING OPPORTUNITIES HAS ALSO YET TO BE CONCLUDED WHILE THE PRICE OF A SEAT ON THE COMEX HAS JUMPED RECENTLY TO 70000 FROM ABOUT 45000 A YEAR AGO THAT'S STILL FAR BELOW THE 342000 PRICE FETCHED THIS MONTH FOR A SEAT ON THE MERC A MUCH LARGER AND MORE PROFITABLE EXCHANGE THUS FAR THE TWO SIDES HOPE TO OFFER MUTUAL TRADING IN NEW PRODUCTS BUT THEY WILL NOT ALLOW ACCESS TO THEIR RESPECTIVE EXISTING CONTRACTS THE NEW YORK MERC THE WORLD'S BIGGEST ENERGY FUTURES MARKET IS SCRAMBLING TO FIND A NEW MODERN TRADING FACILITY AND WOULD LIKE TO KNOW WHETHER IT WILL MOVE INTO A NEW FACILITY ON ITS OWN OR WITH COMEX AS A JUNIOR PARTNER MERC OFFICIALS SAY STEVE KARVELLAS A MEMBER OF THE COMEX AND THE NEW YORK MERC BELIEVES BOTH SIDES ARE VERY MUCH IN FAVOR OF CONSOLIDATING BACKOFFICE CLEARING AND DATAPROCESSING OPERATIONS BUT WHETHER A FULL MERGER COULD EVER BE FINALIZED REMAINS UNCERTAIN THEN THERE ARE THOSE WHO ALL ALONG HAVE CLAMORED FOR CONTINUED INDEPENDENCE FOR THE COMEX WHICH STILL HAS A SUBSTANTIAL 14 MILLION CASH RESERVE I FEEL WE WOULD BE GIVING THE STORE AWAY TO SELL AT PRICES CURRENTLY BEING DISCUSSED SAYS VETERAN COPPER TRADER VINCE ZUCCARELLI IT'S CERTAINLY REASONABLE THAT COMEX WILL MAKE UP TO 10 MILLION PER YEAR IN ACTIVE MARKETS HE SAID LAST YEAR THE EXCHANGE POSTED A PROFIT OF JUST 650000 ON SHARPLY DWINDLING VOLUME THE RECENT OPTIMISM ABOUT THE COMEX'S FUTURE MAY BE GETTING OUT OF HAND THOUGH ONE COMEX EXECUTIVE SAID HE WAS RECENTLY STARTLED BY AN ENTHUSIASTIC TRADER WHO ASKED HIM WHEN THE COMEX WOULD MAKE A COUNTERBID FOR THE BIGGER NEW YORK MERC FOR NOW THE FORTUNES OF THE COMEX WILL TURN ON THE SUSTAINABILITY OF THE CURRENT GOLD RALLY AND THE PRICE VOLATILITY ACCOMPANYING IT PRICE CHANGES PROVIDE THE FUEL FOR TRADERS TO MAKE THEIR LIVING AND MOST MARKET WATCHERS BELIEVE THERE'S VOLATILITY AHEAD ON FRIDAY THE ACTIVE JUNE CONTRACT CLOSED 1 LOWER AT 36830 AN OUNCE FOR THE WEEK GOLD GAINED 1090 LOOKING AHEAD TO OTHER COMMODITY MARKETS TRADERS AND ANALYSTS SAID THAT COPPER FUTURES PRICES MAY HIT NEW CONTRACT LOWS THIS WEEK AMID SIGNS OF SLUGGISH DEMAND FROM CHINA AND WEAK INDUSTRIAL GROWTH IN EUROPE AND JAPAN COPPER FOR JULY DELIVERY CLOSED 355 CENTS LOWER AT 7965 CENTS A POUND FRIDAY COPPER FUTURES RALLIED LAST WEEK ON SIGNS OF A PICKUP IN THE US ECONOMY COPPER IS A WIDELY USED INDUSTRIAL METAL AND RESPONDS POSITIVELY TO SIGNS OF ACCELERATED ECONOMIC GROWTH 9305170061 930517 BUSINESS BRIEF PAGES INC IRS MAY ASSESS MORE TAXES ON SCHOOL BOOK FAIRS UNIT PAGES INC SAID THE INTERNAL REVENUE SERVICE HAS ADVISED IT THAT IT MAY ASSESS ADDITIONAL TAXES ON THE COMPANY'S SCHOOL BOOK FAIRS INC SUBSIDIARY DUBLIN OHIOBASED PAGES SAID IT CAN'T QUANTIFY THE DOLLAR AMOUNT OF THE POTENTIAL ASSESSMENT BUT DOESN'T BELIEVE IT WILL HAVE A MATERIAL EFFECT ON PREVIOUSLY REPORTED OR FUTURE EARNINGS BUT IT COULD RESULT IN AN ADJUSTMENT IN A PRIOR PERIOD TO THE COMPANY'S ALLOCATION OF THE PURCHASE PRICE PAID FOR SCHOOL BOOK FAIRS WHICH WAS ACQUIRED LAST YEAR IT ALSO COULD RESULT IN A REVISION OF PAGES' BALANCE SHEET PAGES A SUPPLIER OF MOTIVATION AND INCENTIVE AWARDS PROGRAMS TO INDUSTRIES PAID ABOUT 10 MILLION FOR TAMPA FLABASED SCHOOL BOOK FAIRS THE POSSIBLE ASSESSMENT INVOLVES TRANSACTIONS TAKING PLACE BEFORE PAGES PURCHASED SCHOOL BOOK FAIRS PAGES SAID IT INTENDS TO CONTEST ANY ASSESSMENT AND IT WILL TRY TO COLLECT FOR ANY ASSESSMENT FROM THE UNIT'S PREVIOUS OWNERS A GROUP OF PRIVATE SHAREHOLDERS 9305170060 930517 TECHNOLOGY BRIEF COMPAQ COMPUTER CORP COMPANY TO ADD 3 MODELS IN REVAMP OF LTE LITE LINE COMPAQ COMPUTER CORP IS EXPECTED TO ANNOUNCE TODAY A REVAMP OF ITS FLAGSHIP LTE LITE FAMILY OF NOTEBOOK COMPUTERS THE HOUSTONBASED PERSONAL COMPUTER MAKER IS EXPECTED TO UNVEIL THREE NEW LITE MODELS INCLUDING A 33MEGAHERTZ COLOR MACHINE THAT IS THE FASTEST NOTEBOOK OFFERED BY COMPAQ THE NEW MACHINES ARE BASED ON INTEL CORP'S 486 MICROPROCESSOR A CHIP THAT NOW ACCOUNTS FOR ABOUT 70 OF COMPAQ'S NOTEBOOK SALES THE ANNOUNCEMENT OF THE MACHINES MARKS AN ACCELERATION OF THE PHASEOUT AT COMPAQ OF NOTEBOOKS BASED ON INTEL'S OLDER 386 CHIP SHARON FRANCIA A NOTEBOOK PRODUCT MANAGER AT THE COMPANY SAID 386 NOTEBOOK SALES AT COMPAQ ARE EXPECTED TO DWINDLE BY YEAR END THE COMPANY'S NEW MACHINES START AT ABOUT 2699 COMPAQ LIKE NEARLY A DOZEN OTHER PC MAKERS ALSO ANNOUNCED A SLEW OF PRODUCTS BASED ON INTEL'S TOPOFTHELINE PENTIUM MICROPROCESSOR THE PENTIUM OFFERINGS INCLUDE A DESKTOP MACHINE PRICED FROM 5000 AS WELL AS A HIGHEND 66MEGAHERTZ SERVER THAT IS EXPECTED TO COST ABOUT 18000 9305170059 930517 PEPPERAND SALT WAITERS ET AL I'VE HAD A NICE DAY ALWAYS TROUBLES ME SO 9305170058 930517 BUSINESS BRIEF ILLINOIS POWER CO FIRM FILES FOR 41 BOOST IN ITS NATURAL GAS BILLING ILLINOIS POWER CO SAID IT FILED A REQUEST WITH THE ILLINOIS COMMERCE COMMISSION FOR A 133 MILLION OR 41 INCREASE IN NATURAL GAS BILLING THE UTILITY SAID THE FILING REFLECTS THE 61 MILLION INVESTMENT IN EXPANDING ITS HILLSBORO NATURAL GAS STORAGE FIELD AND THE INCREASED COST OF PROVIDING GAS SERVICE OVER THE PAST DECADE THE DECATUR ILL COMPANY SAID IT HAS PROPOSED A BASE GAS RATE INCREASE OF 307 MILLION WITH AT LEAST 174 MILLION IN SAVINGS FROM LOWER GAS COSTS FOR CUSTOMERS AS A RESULT OF THE HILLSBORO EXPANSION LEAVING AN OVERALL INCREASE OF 133 MILLION ILLINOIS POWER SAID THAT IF ITS REQUEST IS APPROVED THE AVERAGE RESIDENTIAL NATURAL GAS BILL WOULD INCREASE BY 49 OR ABOUT 250 A MONTH TO ABOUT 5361 THE COMPANY ISN'T PROPOSING A CHANGE IN ELECTRICITY RATES 9305170057 930517 WHAT'S NEWS BUSINESS AND FINANCE U S WEST WILL PAY 25 BILLION FOR A 25 STAKE IN TIME WARNER'S CABLE AND ENTERTAINMENT OPERATIONS IN A STRATEGIC ALLIANCE THAT COULD PUT BOTH COMPANIES AT THE FOREFRONT OF THE REVOLUTION IN INTERACTIVE TELEVISION AND TELECOMMUNICATIONS THE DEAL WHICH WILL MARK THE FIRST TIME ONE OF THE BABY BELLS HAS MADE A MAJOR INVESTMENT IN A PRODUCER OF MOVIES AND TV SHOWS IS EXPECTED TO BE ANNOUNCED TODAY BUSINESSES ARE RAISING PRICES SIGNIFICANTLY DESPITE THE SLOW ECONOMY OFTEN FOR REASONS THAT DON'T SHOW UP IN ECONOMIC TEXTBOOKS THEY INCLUDE GOVERNMENT TRADE REGULATORY AND ENVIRONMENTAL POLICIES AS WELL AS COMPANIES' RESPONSES TO JAPANESE PRICE INCREASES DUE TO THE STRONG YEN PRODUCTION GREW 01 LAST MONTH AT FACTORIES MINES AND UTILITIES AFTER STAYING FLAT IN MARCH THE MAIN REASON FOR THE VIRTUAL STAGNATION WHICH COMES AFTER ENCOURAGING GROWTH OF 03 IN JANUARY AND 05 IN FEBRUARY IS A 36 DROP IN UTILITIES' OUTPUT GPA GROUP HAS TO MAKE 100 MILLION MORE IN PAYMENTS TO CREDITORS IN THE NEXT TWO MONTHS THAN ORIGINALLY BELIEVED UNDERSCORING WHY MEMBERS OF THE AIRCRAFT INDUSTRY WITH A VESTED INTEREST IN THE IRISH LEASING GIANT'S SURVIVAL ARE COMING TO ITS RESCUE MAJOR CORPORATIONS HAVE BEEN ENLISTED BY REP ROSTENKOWSKI TO HELP LOBBY FOR HOUSE AND SENATE PASSAGE OF CLINTON'S TAX PLAN AMONG THE CHEERLEADERS AS THE HEAD OF THE HOUSE WAYS AND MEANS COMMITTEE CALLS THEM ARE GE P&G IBM AND GM AN AIR FORCE OFFICIAL ORDERED IMMEDIATE LIMITS ON USE OF ABOUT 260 AGING LOCKHEED C141 MILITARY TRANSPORTS IN A MOVE HE SAID SIGNALS THE URGENCY OF ACQUIRING MCDONNELL DOUGLAS'S C17 AND OTHER AIRCRAFT THE GENERAL ALSO SAID HE IS CONTEMPLATING A NEED FOR 5 BILLION IN BOEING JETS NISSAN'S IMPORTED TWODOOR PATHFINDERS WERE WRONGLY SUBJECTED TO A 25 TARIFF MEANT FOR CARGO VEHICLES A FEDERAL JUDGE SAID THE RULING MAY HINDER US CAR MAKERS' EFFORTS TO HAVE THE GOVERNMENT EXTEND THE 25 LEVY TO FOURDOOR MULTIPURPOSE VEHICLES PRUDENTIAL SECURITIES FACED WITH THOUSANDS OF DISGRUNTLED INVESTORS DISCLOSED FOR THE FIRST TIME WHY IT HAD ACCEPTED ONE OFFER FOR ITS 35 OIL AND GAS PARTNERSHIPS EVEN THOUGH ANOTHER BIDDER APPARENTLY HAD OFFERED MORE CASH FOR THEM JUST THREE DAYS EARLIER CITIBANK ASKED A US BANKRUPTCY COURT TO APPOINT A CAPTAIN TO STEER O&Y'S INSOLVENT US REAL ESTATE UNIT CARL ICAHN OFFERED 118 BILLION IN CASH FOR EII HOLDINGS IN AN EFFORT TO BLOCK LEON BLACK FROM TAKING CONTROL THE NUMBER OF COMPANIES TAKING LONGER TO PAY BILLS ROSE DURING THE FIRST QUARTER FOR THE FIRST TIME IN SIX QUARTERS ACCORDING TO A SURVEY THE FIGURES ARE A SIGN THAT BUSINESSES ARE WARY ABOUT THE PACE OF THE RECOVERY A CLINTON ADMINISTRATION DECISION TO SCUTTLE MARITIME OPERATING SUBSIDIES PROBABLY WILL LEAD THE LARGEST USFLAG OCEAN CARRIERS TO REGISTER THEIR FLEETS UNDER FOREIGN FLAGS MOTOROLA PLANS TO DISCLOSE TECHNICAL DETAILS ABOUT THREE COMPUTER CHIPS INCLUDING ONE TARGETED AT THE NASCENT HANDHELD COMPUTER MARKET IN WHICH THE COMPANY HOPES TO BE A MAJOR SUPPLIER THE OTHER TWO CHIPS ARE PLANNED FOR HIGHEND LAPTOP COMPUTERS AND FOR COMPACT DISK SYSTEMS FOR HOME TVS BONDS LEHMAN BROTHERS TREASURY INDEX 506623 UP 516 COMMODITIES OIL 1948 A BARREL OFF 30 CENTS DOW JONES FUTURES INDEX 12152 OFF 057 SPOT INDEX 11992 OFF 107 DOLLAR 11080 YEN OFF 108 16020 MARKS OFF 00140 9305170056 930517 BUSINESS BRIEF SOUTHERN PERU COPPER CO FINANCING AGREEMENT IS SET FOR CONSTRUCTION OF PLANTS SOUTHERN PERU COPPER CO SAID IT HAS SIGNED AN AGREEMENT FOR 60 MILLION IN FINANCING FOR THE CONSTRUCTION OF TWO COPPER EXTRACTION PLANTS WITH CORP ANDINA DE FOMENTO CARACAS VENEZUELA THE TWO PLANTS WHICH WILL INCREASE COPPER PRODUCTION AT SOUTHERN PERU'S COPPER MINES IN THE SOUTHERN PART OF PERU WILL COST 120 MILLION THE COMPANY BASED IN NEW YORK IS SEEKING ADDITIONAL FINANCING FOR THE PROJECT WHICH IS PART OF A 350 MILLION FIVEYEAR CAPITAL IMPROVEMENT PROGRAM SOUTHERN PERU IS 523OWNED BY ASARCO INC 207 BY A UNIT OF THE MARMON GROUP 163 BY PHELPS DODGE CORP'S OVERSEAS CAPITAL CORP AND 107 BY NEWMONT MINING CORP 9305170055 930517 BUSINESS BRIEF ATLANTIC GULF COMMUNITIES CORP NEW YORK STATE SETS ACCORD OVER PROPERTY SALES CLAIMS NEW YORK STATE SAID IT REACHED A SETTLEMENT WITH FLORIDABASED PROPERTY DEVELOPER GENERAL DEVELOPMENT CORP OVER FRAUDULENT CLAIMS IN PROPERTY SALES UNDER THE SETTLEMENT THE COMPANY NOW KNOWN AS ATLANTIC GULF COMMUNITIES CORP IS BARRED FROM MISLEADING CONSUMERS ABOUT THE VALUE OF ITS PROPERTIES THE NATURE OF THE COMMUNITIES IN WHICH THEY ARE LOCATED THE TERMS OF FINANCING AND THE COMPANY'S PLANS FOR DEVELOPMENT AS MANY AS 230000 BUYERS INCLUDING 30000 NEW YORKERS PURCHASED LAND FROM GENERAL DEVELOPMENT MOSTLY OUTOFSTATE CUSTOMERS THEY OFTEN HAD LITTLE KNOWLEDGE OF THE FLORIDA LAND AND REALESTATE MARKET AFTER THE PURCHASE THEY LEARNED THAT THEIR PROPERTY WAS WORTH ONLY 30 TO 50 OF THE PRICE THEY PAID THE STATE ASSERTED IN 1990 GENERAL DEVELOPMENT FILED FOR PROTECTION UNDER BANKRUPTCY LAW IN MARCH 1992 ATLANTIC GULF COMMUNITIES BASED IN MIAMI WAS APPROVED AS THE REORGANIZED CORPORATE ENTITY IN A SEPARATE CASE FILED BY FEDERAL AUTHORITIES THE COMPANY HAS ALREADY AGREED TO PROVIDE AS MUCH AS 160 MILLION IN REFUNDS TO CONSUMERS 9305170054 930517 BUSINESS BRIEF PAINEWEBBER GROUP INC FIRM SELLS INTEREST IN UNIT TO MERRILL LYNCHLED FUND PAINEWEBBER GROUP INC SAID IT SOLD ITS INTEREST IN PAINEWEBBER MORTGAGE FINANCE INC TO AN INSTITUTIONAL INVESTMENT FUND LED BY MERRILL LYNCH CAPITAL PARTNERS AN AFFILIATE OF MERRILL LYNCH & CO TERMS WEREN'T DISCLOSED AND PAINEWEBBER OFFICIALS COULDN'T BE REACHED FOR FURTHER DETAILS ABOUT THE MORTGAGE SUBSIDIARY PAINEWEBBER IN NEW YORK SAID THAT IT SOLD THE SUBSIDIARY BECAUSE IT NO LONGER FIT WITH THE SECURITIES CONCERN'S BUSINESS STRATEGY WHICH CONCENTRATES ON RETAIL SALES AND MARKETING OF SECURITIES INSTITUTIONAL SALES AND TRADING ASSET MANAGEMENT AND INVESTMENT BANKING PAINEWEBBER MORTGAGE FINANCE IN COLUMBIA MD ORIGINATES RESIDENTIAL LOANS THROUGHOUT THE EAST COAST AND PARTS OF THE MIDWEST 9305170053 930517 INTERNATIONAL BRIEF UNILEVER PLC COMPANY POSTS 69 GROWTH IN FIRSTPERIOD PRETAX PROFIT UNILEVER PLC THE ANGLODUTCH FOOD AND HOUSEHOLDPRODUCTS GROUP SAID PRETAX PROFIT ROSE 69 IN THE FIRST QUARTER OF 1993 FROM A YEAR EARLIER DRIVEN BY PROFIT GAINS OUTSIDE OF EUROPE AND NORTH AMERICA UNILEVER'S PRETAX PROFIT OF 420 MILLION 6392 MILLION UP FROM 393 MILLION A YEAR EARLIER WAS AT THE BOTTOM END OF THE RANGE OF MARKET ESTIMATES BETWEEN 420 MILLION AND 440 MILLION SALES TOTALED 603 BILLION 918 BILLION UP 71 FROM 564 BILLION EUROPEAN PROFIT EDGED DOWN AS SALES ROSE 34 TO 348 BILLION FROM 337 BILLION NORTH AMERICAN PROFIT ROSE MARGINALLY ON A 1 SALES RISE TO 104 BILLION FROM 103 BILLION BUT PROFIT IN THE REST OF THE WORLD ROSE 18 TO 156 MILLION FROM 132 MILLION AS RESTOFTHEWORLD SALES INCREASED 22 TO 151 BILLION FROM 123 BILLION UNILEVER CHAIRMAN MICHAEL PERRY SAID THE COMPANY WAS ASSISTED OUTSIDE ITS MAIN EUROPEAN AND NORTH AMERICAN MARKETS BY RECENT ACQUISITIONS 9305170052 930517 MARKETING BRIEF NOTED WHO'S NEWS FORBES INC NAMED CASPAR W WEINBERGER 75 YEARS OLD CHAIRMAN A POST VACANT SINCE THE DEATH OF MALCOLM S FORBES IN 1990 MR WEINBERGER US DEFENSE SECRETARY FROM 1980 TO 1987 HAD BEEN PUBLISHER OF FORBES MAGAZINE SINCE 1989 ASSOCIATE PUBLISHER JEFFREY M CUNNINGHAM 40 WAS PROMOTED TO PUBLISHER MALCOLM S FORBES JR CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OF FORBES INC AND EDITORINCHIEF OF THE COMPANY'S MAGAZINE 9305170051 930517 ENTERPRISE JUDGE OVERTURNS MUCH OF IOWA LAW THAT INCREASED POWER OF FRANCHISEES BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL DES MOINES IOWA MUCH OF IOWA'S NEW FRANCHISING LAW WHICH GIVES FRANCHISEES MORE CLOUT THAN IN MANY OTHER STATES WAS RULED INVALID BY A FEDERAL JUDGE BUT TWO FRANCHISERS THAT CHALLENGED THE ACT IN COURT MCDONALD'S CORP AND HOLIDAY INNS INC A UNIT OF LONDON HOLDING COMPANY BASS PLC INDICATED THEY WON'T EXPAND OPERATIONS IN IOWA UNTIL THE LAW IS FURTHER MODIFIED US DISTRICT JUDGE HAROLD D VIETOR RULED FRIDAY THAT THE LAW UNCONSTITUTIONALLY UNDERMINES CONTRACTS BETWEEN FRANCHISERS AND THEIR FRANCHISEES IT MATERIALLY CHANGES THE RIGHTS TO WHICH THE PARTIES AGREED AND FOR WHICH THEY GAVE CONSIDERATION HE WROTE THE JUDGE DIDN'T DECIDE WHETHER THE LAW APPLIED TO AGREEMENTS MADE AFTER ITS PASSAGE IN JULY AND LAWYERS FROM BOTH SIDES SAY THEY EXPECT THAT ISSUE TO BE ADDRESSED IN THE COURTS SOON THE RULING WAS WIDELY ANTICIPATED SINCE IOWA'S LAW WAS SEEN AS A MODEL FOR OTHER STATES INTERESTED IN GIVING FRANCHISEES MORE SAY ADVOCATES CONTEND THAT MANY STATE LAWS FAVOR CORPORATE FRANCHISERS MORTON ARONSON VICE PRESIDENT AND GENERAL COUNSEL OF HOLIDAY INNS FRANCHISING CALLED THE RULING A CLEAR VICTORY FOR THE FRANCHISING INDUSTRY AND SAID IT TAKES A LOT OF THE WIND OUT OF THE SAILS OF RADICAL FRANCHISEE GROUPS THAT WERE TRYING TO NEGATIVELY IMPACT A HEALTHY INDUSTRY IN A STATEMENT MCDONALD'S CALLED IT A POSITIVE DEVELOPMENT BUT SAID THE RULING STILL DOES NOT OPEN THE DOOR TO FURTHER FRANCHISING IN IOWA WE WOULD HOPE THAT THE IOWA LEGISLATURE WOULD ADDRESS THIS PROBLEM WHEN IT RECONVENES NEXT JANUARY MCDONALD'S HAD VOWED NOT TO FRANCHISE MORE RESTAURANTS IN IOWA IF THE ACT REMAINED ON THE BOOKS MCDONALD'S CHALLENGED THE LAW IN A SUIT OVER PLANS TO BUILD A RESTAURANT IN DES MOINES UNDER THE ACT DES MOINES FRANCHISEE STEVEN L NELSON WOULD HAVE HAD RIGHT OF FIRST REFUSAL FOR THE NEW STORE OR COULD RECEIVE COMPENSATION FOR DIVERTED MARKET SHARE BUT MCDONALD'S ARGUED THAT THE ABSENCE OF TERRITORIAL OR EXCLUSIVE RIGHTS FOR A FRANCHISEE SERVES AS AN INCENTIVE TO RUN THE BUSINESS WELL BRENT B CHRIS GREEN AN ATTORNEY REPRESENTING MR NELSON SAID HIS CLIENT WAS SERIOUSLY CONSIDERING AN IMMEDIATE APPEAL OF THE JUDGE'S RULING A SECTION OF IOWA'S LAW GIVES FRANCHISEES GREATER SAY IN TRANSFERRING A BUSINESS MOST FRANCHISERS INSIST ON HAVING VETO POWER OVER TRANSFERS HOLIDAY INNS SAID THE LAW RESTRICTS ITS RIGHT TO SELECT FRANCHISEES IOWA ALSO GRANTS MORE POWER TO OPERATORS IN FRANCHISETERMINATION PROCEEDINGS LEWIS RUDNICK A CHICAGO ATTORNEY SPECIALIZING IN FRANCHISE LAW SAID THAT IN VIEW OF JUDGE VIETOR'S RULING HE WOULD EXPECT A GROUNDSWELL OF FRANCHISEES PUSHING TO GET THE LAW CHANGED NOW IT IS OF VERY LITTLE HELP TO EXISTING FRANCHISEES AND THEY HAVE TO BE CONCERNED ABOUT HOW THEY'RE GOING TO GET ADDITIONAL FRANCHISES HE SAID IF THE LAW ISN'T AMENDED HE SAID FRANCHISERS MIGHT GO IN ONLY WITH COMPANY STORES 9305170050 930517 ROSTENKOWSKI LOOKS TO FIRMS ON TAX PLAN BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REP DAN ROSTENKOWSKI HAVING MADE PROBUSINESS CHANGES IN PRESIDENT CLINTON'S TAX PLAN NOW IS ENLISTING MAJOR CORPORATIONS TO HELP LOBBY FOR HOUSE AND SENATE PASSAGE OF THE BILL WITHIN A DAY OF THE PACKAGE'S APPROVAL ON THURSDAY BY THE HOUSE WAYS AND MEANS COMMITTEE WHICH REP ROSTENKOWSKI CHAIRS THE LIST OF CORPORATE CONVERTS CONSISTED OF GENERAL ELECTRIC CO PROCTER & GAMBLE CO INTERNATIONAL BUSINESS MACHINES CORP KELLOGG CO GENERAL MILLS INC GENERAL MOTORS CORP EMERSON ELECTRIC CO SARA LEE CORP MINNESOTA MINING & MANUFACTURING CO HONEYWELL INC AND WALT DISNEY CO THE BILL AS ORIGINALLY PUT TOGETHER BY THE ADMINISTRATION WOULD HAVE HAD THESE VERY PEOPLE VISIBLY WORKING AGAINST IT THE CHICAGO DEMOCRAT SAID IN AN INTERVIEW FRIDAY REP ROSTENKOWSKI WANTS TO CORRAL ABOUT 50 CORPORATE CHEERLEADERS AS HE CALLS THEM THEIR SUPPORT HINGES ON THREE CHANGES THE CHAIRMAN SHEPHERDED THROUGH HIS PANEL RAISING THE CORPORATE TAX RATE ONE PERCENTAGE POINT TO 35 INSTEAD OF TWO POINTS AS MR CLINTON WANTED AND KILLING ADMINISTRATION PROVISIONS FOR INVESTMENT TAX CREDITS AND FOR HIGHER TAXES ON MULTINATIONALS' OVERSEAS ROYALTY INCOME BECAUSE THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE DANIEL MOYNIHAN D NY IS SAID TO BE CONSIDERING THE SAME CHANGES THE LOBBYING PHALANX COULD HOLD AS THE BILL MOVES TO THE SENATE NEXT MONTH STILL AT 50 COMPANIES THE COALITION WOULD FALL FAR SHORT OF THE APPROXIMATELY 300 THAT REP ROSTENKOWSKI MARSHALED IN 1986 TO HELP PASS A LANDMARK TAX CODE OVERHAUL FIRMLY OPPOSED MOREOVER IS THE SMALLBUSINESS LOBBY WHICH IS INFLUENTIAL ESPECIALLY WITH SOUTHERN DEMOCRATS FURTHERMORE THE CORPORATE CHEERLEADING COULD BACKFIRE IF VOTERS AND SOME LAWMAKERS SEE THE TAX BILL AS FAVORING SPECIAL INTERESTS MR CLINTON HAS RAILED AGAINST AS THE DEFICITREDUCTION BILL MOVES TO THE HOUSE FLOOR NEXT WEEK REP ROSTENKOWSKI IS COORDINATING THE COALITIONBUILDING WITH THE WHITE HOUSE THE CHAIRMAN SAID THAT IN HIS MEETINGS WITH THE PRESIDENT HE RECALLED THE WORK OF THE 1986 COALITION ADDING I DON'T THINK WE SHOULD BE VIEWING CORPORATE AMERICA AS OUR ENEMY TREASURY SECRETARY LLOYD BENTSEN AND HIS DEPUTY ROGER ALTMAN ALSO HAVE BEEN ATTEMPTING TO RALLY BUSINESS SUPPORT FOR THE CLINTON PLAN EVEN BEFORE THE HOUSE COMMITTEE MODIFIED THE BILL THE NATIONAL ASSOCIATION OF REALTORS WAS MOBILIZING ITS 750000 MEMBERS TO SUPPORT IT THE COMMITTEE SWEETENED THE PRODUCT FOR THE REAL ESTATE INDUSTRY NOTABLY BY WRITING A MORE GENEROUS PROVISION FOR PROFESSIONALS TO DEDUCT PASSIVE LOSSES ON RENTAL INCOME THE REAL ESTATE PROVISIONS IN THE BILL ARE EXCELLENT SAID STEPHEN DRIESLER LOBBYIST FOR THE ASSOCIATION HE SAID A CALL TO ACTION HAS GONE OUT TO 1900 LOCAL BOARDS AND ALL STATE GROUPS SO THAT THEY'LL CONTACT THEIR CONGRESSIONAL REPRESENTATIVES WHERE REP ROSTENKOWSKI COULDN'T WIN BUSINESS SUPPORT HE SOUGHT NEUTRALITY SOME CORPORATE SUPPORTERS INCLUDING PROCTER & GAMBLE GM AND IBM WERE PART OF THE 1986 COALITION KNOWN AS THE TAX REFORM ACTION COALITION OR TRAC THAT GROUP WHICH IS STILL LARGELY TOGETHER HAD BEEN LOBBYING CONGRESS AGAINST MR CLINTON'S PROPOSED CORPORATE RATE INCREASE BUT BECAUSE THE HOUSE PANEL HALVED IT AND DROPPED THE TEMPORARY TAX CREDITS FOR INVESTMENTS TRAC WILL NOT OPPOSE THIS PACKAGE SAID LOBBYIST DIRK VAN DONGEN MANY BUSINESSES CONSIDERED THE INVESTMENT TAX CREDIT PROPOSAL TOO NARROWLY DRAWN AND AN INEFFICIENT WAY TO STIMULATE THE ECONOMY BUT SOME OTHER BUSINESS GROUPS EVEN THOSE FOR WHOM THE WAYS AND MEANS PANEL SOFTENED THE BLOW REMAIN ADAMANTLY OPPOSED THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE LARGEST ALLIANCE OF SMALL BUSINESSES IS OPPOSED EVEN THOUGH MR CLINTON HIMSELF IN A DIRECT BID FOR NFIB SUPPORT INSISTED THAT THE TAX COMMITTEE RAISE TO 25000 FROM 10000 THE AMOUNT THAT SMALL BUSINESSES CAN WRITE OFF FOR EQUIPMENT PURCHASES DURING THE YEAR THE GROUP CAN'T SWALLOW THE BILL'S BROAD ENERGY TAX AND INCOME TAX INCREASES FOR WEALTHY INDIVIDUALS WHICH ALSO AFFECT A FEW SMALL BUSINESSES THE TAX BILL IS A DEGREE LESS BAD AND WE'RE WILLING TO SAY THAT SAID MIKE ROUSH AN NFIB LOBBYIST BUT UNFORTUNATELY IT'S KIND OF LIKE GIVING SOMEONE AN UMBRELLA AND THEN DUMPING ON THEM LIKEWISE THE BARGE INDUSTRY'S LOBBY THE AMERICAN WATERWAYS OPERATORS IS FIGHTING THE BILL EVEN THOUGH THE COMMITTEE HALVED MR CLINTON'S PROPOSED INCREASE IN THE EXCISE TAX ON FUEL FOR BARGES ENGAGED IN INLAND TRANSPORT THE INDUSTRY ARGUES THAT THE LEVY HURTS FARMERS AND BUSINESSES THAT RELY ON INLAND BARGES FARMSTATE SENATORS ARE EXPECTED TO REVIVE THE BATTLE 9305170049 930517 POLITICS & POLICY LACK OF SEA CHANGE ON MARITIME AID IS LIKELY TO SEND FLEETS TO OTHER SHORES BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A CLINTON ADMINISTRATION DECISION TO SCUTTLE ALL MARITIME OPERATING SUBSIDIES WILL LIKELY FORCE THE LARGEST USFLAG OCEAN CARRIERS TO REGISTER THEIR FLEETS UNDER FOREIGN FLAGS SUCH A REFLAGGING INDUSTRY OFFICIALS SAID WOULD DECIMATE THE NATION'S ALREADY SHRUNKEN MERCHANT MARINE AND END LINGERING US PRETENSIONS OF BEING A MARITIME POWER FOR THE PAST YEAR THE LARGEST US CARRIERS HAVE BEEN THREATENING TO GO OFFSHORE UNLESS THEY GOT A MULTIBILLION DOLLAR PACKAGE OF SUBSIDIES TAX AND REGULATORY RELIEF NEVERTHELESS THIS DIDN'T DETER THE NATIONAL ECONOMIC COUNCIL AN INTERAGENCY GROUP FROM REJECTING A TRANSPORTATION DEPARTMENT PLAN TO ASSIST THE BELEAGUERED INDUSTRY AS A RESULT THE LAST OF THE SUBSIDY CONTRACTS UNDER THE CURRENT PROGRAM WILL EXPIRE BY THE END OF 1997 ADMINISTRATION OFFICIALS SAID THE MARITIME INDUSTRY WAS TAKEN ABACK BY THE ADMINISTRATION'S DECISION WHICH WAS FIRST REPORTED BY THE JOURNAL OF COMMERCE FRIDAY INDUSTRY OFFICIALS SAID THEY EXPECT CSX CORP'S SEALAND SERVICES INC AND OTHER SHIPPING LINES TO BEGIN MAKING GOOD ON THEIR REFLAGGING THREATS IN THE NEAR FUTURE SEALAND THE NATION'S LARGEST OCEAN CARRIER IS ALSO CONSIDERING MOVING ITS CORPORATE HEADQUARTERS FROM RICHMOND VA TO ANOTHER COUNTRY WHERE CREW COSTS AND TAXES ARE LOWER AND MARITIME REGULATIONS ARE LESS STRINGENT THAN US COAST GUARD RULES WE SAID WE NEED A YES' OR A NO' ON MARITIME REFORM SAID THOMAS HOPPIN A SENIOR CSX SPOKESMAN IN RICHMOND APPARENTLY THE ANSWER IS TO THE NEGATIVE SO NOW WE'RE CONSIDERING ALL OUR OPTIONS AMERICAN PRESIDENT LINES THE SECONDLARGEST OCEAN CARRIER ISN'T IN A POSITION TO REFLAG ITS FLEET OF CONTAINER SHIPS IMMEDIATELY BECAUSE OF SUBSIDY CONTRACTS THAT WON'T EXPIRE UNTIL DEC 31 1997 IN MID1995 THE COMPANY WILL TAKE DELIVERY OF SIX NEW SHIPS IF THE PRESENT SITUATION CONTINUES SAID GIL ROEDER SPOKESMAN FOR AMERICAN PRESIDENT COS THE OAKLAND CALIF PARENT WE WOULD SEEK TO OPERATE THOSE SHIPS UNDER FOREIGN FLAGS CURRENTLY MUCH OF THE WORLD'S SHIPPING IS REGISTERED IN SUCH NATIONS AS PANAMA LIBERIA AND GREECE LESS THAN 4 OF ALL US TRADE IS CARRIED BY USFLAG VESSELS AND ONLY 19 OF ALL LINER CARGO SUCH AS TELEVISIONS CLOTHING AND OTHER HIGHVALUE ITEMS MOVES IN SOCALLED US BOTTOMS THE MARITIME DECISION REFLECTED A NUMBER OF POLICY AND BUDGET CONSIDERATIONS THE WHITE HOUSE BUDGET OFFICE OBJECTED TO FURTHER SUBSIDIES AMID A BUDGET CRUNCH WHILE THE PENTAGON WASN'T PREPARED TO DECLARE THAT A USFLAG FLEET IS STILL CRUCIAL TO NATIONAL DEFENSE THE MILITARY IS REASSESSING ITS SOCALLED SEALIFT NEEDS BUT THE STUDY WON'T BE COMPLETED UNTIL AUGUST TOO LATE TO BE OF ANY HELP INDUSTRY ALLIES IN CONGRESS LED BY SEN JOHN BREAUX D LA AND REP WILLIAM LIPINSKI D ILL ARE EXPECTED TO INTRODUCE A MARITIME PACKAGE AND HOLD HEARINGS WITHIN THE NEXT FEW WEEKS BUT THE PACKAGE ISN'T LIKELY TO PASS IN PART BECAUSE TIME IS RUNNING OUT ON THE CONGRESSIONAL SESSION THE INDUSTRY HAS BEEN PUSHING A 15YEAR 4 BILLION PROGRAM THAT WOULD PROVIDE 25 MILLIONAYEAR SUBSIDY PAYMENTS FOR 110 SHIPS LAST YEAR FORMER TRANSPORTATION SECRETARY ANDREW CARD PROPOSED A 11 BILLION MULTIYEAR PROGRAM HIS SUCCESSOR FEDERICO PENA HASN'T SPELLED OUT HOW MUCH HE WOULD SPEND BUT IT WOULD BE MORE THAN MR CARD'S RECOMMENDATION AND CONSIDERABLY LESS THAN WHAT THE INDUSTRY WANTS 9305170046 930517 BUSINESS BRIEF ALEXANDER'S FILES REORGANIZATION PLAN THAT WOULD PAY ABOUT HALF OF CLAIMS NEW YORK ALEXANDER'S INC FILED A CHAPTER 11 REORGANIZATION PLAN THAT WOULD PAY ON AVERAGE ABOUT HALF THE TOTAL CLAIMS AGAINST IT AND ENABLE IT TO EMERGE AS A REAL ESTATE COMPANY THE FORMER OPERATOR OF THE ALEXANDER'S CHAIN OF DEPARTMENT STORES IN THE NEW YORK AREA SAID THE PLAN FILED IN US BANKRUPTCY COURT IN MANHATTAN IS SUPPORTED BY THE COMMITTEE REPRESENTING THE COMPANY'S UNSECURED CREDITORS NEVERTHELESS IT SAID THAT IF ANY MAJOR CLASS OF CLAIMANTS INCLUDING ITS BANKS AND LIMITED PARTNERS IN REAL ESTATE PARTNERSHIPS DIDN'T ACCEPT THE PLAN IT WOULD ASK THE COURT TO FORCE THEM TO ACCEPT IT UNDER A CRAMDOWN PROVISION CURRENT SHAREHOLDERS WOULDN'T BE AFFECTED AND WOULD RETAIN THEIR INTERESTS HOWEVER ALEXANDER'S SAID IT WILL NEED TO RAISE ABOUT 60 MILLION TO FUND THE PLAN AND ESTIMATED CREDITOR PAYMENTS AND IS CONSIDERING ALTERNATIVES INCLUDING NEW BANK LOANS OR A PUBLIC OFFERING OF DEBT STOCK OR STOCK RIGHTS IT EXPECTS TO HAVE FINANCING IN PLACE BY NOVEMBER OR DECEMBER AND TO PAY UNSECURED CREDITORS BY DEC 30 ALEXANDER'S SAID THE REORGANIZATION PLAN PROVIDES FOR AN INITIAL DISTRIBUTION TO GENERAL UNSECURED CREDITORS OF 25 OF ALL ALLOWED CLAIMS ALONG WITH INTEREST ON THE FULL AMOUNT OF SUCH CLAIMS FOR THE PERIOD FROM MAY 15 1992 WHEN IT WENT INTO BANKRUPTCY COURT THROUGH THE PLAN'S CONFIRMATION DATE IT ESTIMATED A CONFIRMATION DATE OF AUG 31 THE BALANCE OF THE ALLOWED CLAIMS WOULD BE PAID WITH INTEREST BY DEC 30 ALEXANDER'S ESTIMATED THE MAXIMUM AMOUNT OF ALLOWED CLAIMS BY GENERAL UNSECURED CREDITORS WOULD BE ABOUT 35 MILLION THE PLAN ALSO WOULD DEFER REPAYMENT OF CERTAIN SECURED DEBT TOTALING ABOUT 243 MILLION WOULD MODIFY SOME COVENANTS CONTAINED IN CERTAIN CREDIT LINES SECURITY DOCUMENTS AND MORTGAGES IT SAID IT NEEDS TO DEFER THESE REPAYMENTS BECAUSE IT WILL NEED AS MUCH AS TWO YEARS AFTER ITS REORGANIZATION BECOMES EFFECTIVE TO GENERATE SUFFICIENT CASH FLOW FROM THE LEASE OF ITS PROPERTIES PRINCIPALLY ITS FORMER RETAIL SITES ALEXANDER'S ADDED THAT IT EXPECTS TO REALIZE SIGNIFICANT VALUE FROM ITS PROPERTIES OVER TIME TOTAL CLAIMS AGAINST IT ARE MORE THAN 269 MILLION PLUS SOME UNSPECIFIED UNLIQUIDATED AMOUNTS ALEXANDER'S SAID OF THAT IT ESTIMATED THAT 127 MILLION OR 47 WOULD BE ALLOWED FOR PAYMENT BY THE BANKRUPTCY COURT THE REORGANIZATION PLAN CALLS FOR PAYMENT OF 100 OF THE ALLOWED AMOUNT OF CLAIMS OF ITS SECURED UNSECURED AND BANK CREDITORS ALEXANDER'S DIDN'T SPECIFY THE TOTAL OF CLAIMS ASSERTED BY UNSECURED CREDITORS IT SAID THAT IN THE CASE OF DISPUTED CLAIMS IT WOULD PAY 35 OF THE CLAIM PLUS INTEREST ACCUMULATED SINCE THE CHAPTER 11 FILING A YEAR AGO THE COMPANY SAID DISPUTING CLAIMANTS COULD DECLINE THE CASH OFFER AND ALLOW THEIR CLAIMS TO ACCRUE INTEREST WHILE THEIR DISPUTES ARE STILL UNRESOLVED ALEXANDER'S ALSO EXPECTS TO PAY ABOUT 4 MILLION FOR TAXES AND 2 MILLION IN ADMINISTRATIVE EXPENSES IN ADDITION IT SAID IT HAS ACCUMULATED ABOUT 57 MILLION OF TAXLOSS CARRYFORWARDS BUT WARNED THAT FULL USE OF THEM MAY BE LIMITED UNDER TAX LAW IF IT RAISES FUNDS THROUGH A STOCK RIGHTS OR CONVERTIBLE DEBT OFFERING THAT CHANGES OWNERSHIP OF THE COMPANY ALEXANDER'S INC EXPECTS TO PAY 100 OF ALL ALLOWED CLAIMS OF ITS CREDITORS INCLUDING DISPUTED CLAIMS THAT ARE ULTIMATELY RESOLVED PLUS ACCRUED INTEREST ITS CHAPTER 11 REORGANIZATION PLAN NOTED THAT MORE THAN 269 MILLION OF CLAIMS ARE ASSERTED AGAINST IT BUT A SPOKESWOMAN SAID THE ELIMINATION OF DUPLICATIVE CLAIMS AND THE NORMAL BANKRUPTCY RECONCILIATION PROCESS WOULD LOWER THAT NUMBER CONSIDERABLY AND ALEXANDER'S EXPECTS 127 MILLION OF CLAIMS TO BE ALLOWED ALSO THE TOTAL OF SECURED DEBT IT WOULD DEFER REPAYING IS ABOUT 473 MILLION INCLUDING 19 MILLION OF BANK DEBT AN ARTICLE YESTERDAY SAID ALEXANDER'S WOULD PAY ABOUT HALF THE CLAIMS AGAINST IT BASED ON THE 269 MILLION FIGURE THE ARTICLE ALSO INCORRECTLY SAID ALEXANDER'S WOULD DEFER REPAYMENT OF 243 MILLION IN SECURED DEBT 9305170045 930517 BUSINESS BRIEF OSHMAN'S SPORTING GOODS INC SPORTING GOODS MAKER SAYS IT EXPECTS FIRSTPERIOD LOSS OSHMAN'S SPORTING GOODS INC SAID IT EXPECTS TO REPORT A LOSS OF ABOUT 27 MILLION FOR THE FIRST QUARTER ENDED MAY 1 THE HOUSTON OPERATOR OF SPORTING GOODS STORES SAID HEAVY RAINS AND GENERALLY UNSEASONAL WEATHER HURT SALES IN THE QUARTER A SPOKESMAN ALSO CITED POOR ECONOMIC CONDITIONS FOR THE ANTICIPATED LOSS AND SALES DECLINE OSHMAN'S WOULDN'T PROVIDE A SALES ESTIMATE FOR THE QUARTER BUT SAID SAMESTORE SALES IN ITS TRADITIONAL STORES FELL 2 WHILE SAMESTORE SALES IN ITS MEGASTORES ROSE 25 SAMESTORE SALES ARE FOR STORES OPEN AT LEAST A YEAR IN THE FIRST QUARTER OF FISCAL 1992 OSHMAN'S HAD A LOSS OF 986000 OR 17 CENTS A SHARE ON SALES OF 622 MILLION OSHMAN'S SAID IN MARCH IT WAS CONFIDENT IT WOULD HAVE A FISCAL 1993 PROFIT THE SPOKESMAN SAID THAT FORECAST HASN'T CHANGED AS A RESULT OF THE ANTICIPATED FIRSTQUARTER LOSS FOR FISCAL 1992 OSHMAN'S HAD A LOSS OF 200000 OR THREE CENTS A SHARE ON SALES OF 3133 MILLION 9305170044 930517 BEYOND HANDOUTS NEW SOCIAL PROGRAMS EMPHASIZE FLEXIBILITY AND SELFSUFFICIENCY A SHELTER GIVES JOB TRAINING THERAPY MENDS FAMILIES WELFARE GETS A NEW TWIST IDEAS RISE FROM LOCAL LEVEL BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL LITTLE ROCK ARK THREE YEARS AGO PATRICIA BAGWELL DESTITUTE AND HAVING TROUBLE BREATHING LIVED OUT OF HER CAR AT HIGHWAY REST STOPS TODAY SHE HAS A COMPUTER JOB AT A HOSPITAL AND RENTS HER OWN APARTMENT MS BAGWELL OWES HER NEWFOUND GOOD FORTUNE TO OUR HOUSE AN INNOVATIVE SHELTER HERE THAT GIVES THE HOMELESS COMPUTER TRAINING INSTEAD OF JUST HANDOUTS USING DONATED EQUIPMENT OUR HOUSE'S 22MONTHOLD PROGRAM HAS HELPED DOZENS LAND JOBS PREVIOUSLY BEYOND THEIR REACH THEY REALLY SAVED MY LIFE MS BAGWELL SAYS THE TRAINING CHANGED EVERYTHING FOR ME THE SHELTER IS ONE OF SEVERAL NEW PROGRAMS QUIETLY EMERGING AT STATE AND LOCAL LEVELS THAT HAVE MADE SOME IMPRESSIVE PROGRESS IN HANDLING INTRACTABLE PROBLEMS HOMELESSNESS FAMILY BREAKUPS AND LONGTERM WELFARE DEPENDENCY AT A TIME WHEN MANY TRADITIONAL PROGRAMS SEEM STALE THESE NEW EFFORTS OFFER INNOVATIVE MODELS FOR CHANGING THE WAY GOVERNMENT DELIVERS SOCIAL SERVICES THANKS TO A FOURYEAROLD STATE COUNSELING PROGRAM IN TENNESSEE 13YEAROLD TONYA POOL REMAINS AT HOME RATHER THAN IN FOSTER CARE OR IN AN INSTITUTION AFTER STRIKING FAMILY MEMBERS AND IN FORESTVILLE NY MICHELLE SZWEJBKA A MOTHER OF THREE HAS WORKED HER WAY OFF WELFARE UNDER AN EXPERIMENTAL STATE PROGRAM OVERHAULING GOVERNMENT ASSISTANCE TO SINGLEPARENT FAMILIES UNLIKE SOME SOCIAL PROGRAMS OF THE PAST THESE RECENT SUCCESSES RELY ON GRASSROOTS SUPPORT INSTEAD OF TOPDOWN FUNDING OR DIRECTIVES FROM WASHINGTON INSTEAD OF UNENDING HANDOUTS AND STATE PATERNALISM THEY STRESS SELFSUFFICIENCY AND PERSONAL RESPONSIBILITY AND LOOK TO THE PRIVATE SECTOR TO PROVIDE JOBS THEY ALSO OFFER BROADER AND MORE FLEXIBLE SUPPORT OFTEN WHATEVER IT TAKES TO GET THE JOB DONE SUCH PROGRAMS EMPOWER PEOPLE RATHR THAN JUST SERVING THEM AND THEY PUSH THE SOLUTIONS OUT OF THE BUREAUCRACY AND INTO THE COMMUNITY SAYS DAVID OSBORNE COAUTHOR OF REINVENTING GOVERNMENT AND NOW A SENIOR ADVISER TO THE CLINTON ADMINISTRATION'S EFFORT TO STREAMLINE THE FEDERAL BUREAUCRACY NONE OF THESE PROGRAMS OFFER MIRACLE CURES AND SOME WILL PROBABLY LOSE THEIR ALLURE OVER TIME THINGS GET HOT ON A LITTLE BIT OF EVIDENCE THEY GET PUSHED AND THEN LATER WE FIND OUT THEY DON'T REALLY WORK SAYS MICHAEL BAILIN PRESIDENT OF PUBLIC/PRIVATE VENTURES A NONPROFIT GROUP BASED IN PHILADELPHIA BUT THESE NEW ISLANDS OF SUCCESS HAVE WON SOME IMPORTANT FOLLOWERS PRESIDENT CLINTON HAS PRAISED OUR HOUSE AS A MODEL PROGRAM AND URGED GOVERNORS AND LOCAL OFFICIALS TO CONTINUE THEIR BOLD PERSISTENT EXPERIMENTATION IN SEARCH OF SOLUTIONS OUR HOUSE WAS FOUNDED BY CHURCHES AND SYNAGOGUES IN 1987 IN DOWNTOWN LITTLE ROCK ITS DORMITORYSTYLE FACILITY WAS MUCH LIKE OTHER SHELTERS EXCEPT THAT IT GAVE THE HOMELESS A PLACE TO STAY FOR A LONGER TIME AND TRIED TO FIND SOME OF THEM JOBS AFTER A WHILE JOSEPH FLAHERTY A DETERMINED BOSTON TRANSPLANT WHO IS THE SHELTER'S DIRECTOR REALIZED THAT FOR THE PLACE REALLY TO CHANGE LIVES IT WOULD NEED TO PROVIDE JOB TRAINING AFTER MORE THAN A YEAR OF NAGGING AND LEGAL WRANGLING HE GOT THE FEDERAL GOVERNMENT IN 1990 TO FORK OVER SEVEN VACANT BUILDINGS CORPORATIONS FOUNDATIONS AND THE FEDERAL GOVERNMENT PROVIDED FUNDS AND INTERNATIONAL BUSINESS MACHINES CORP DONATED THE FIRST OF 28 COMPUTERS AMONG THE FIRST STUDENTS WAS MS BAGWELL NOW 38 YEARS OLD HER MARRIAGE OF 16 YEARS HAD ENDED AND SHE HAD LOST HER LONGTIME JOB AS A BOOKSTORE MANAGER SHE ALSO HAD A THYROID CONDITION THAT CAUSED HER HEART TO RACE AND GAVE HER SHORTNESS OF BREATH WITH MR FLAHERTY'S HELP SHE GOT MEDICAL TREATMENT AND A SEMIPRIVATE ROOM AT A SECOND OUR HOUSE SHELTER AND ENROLLED IN THE COMPUTER COURSE PARTICIPANTS MUST HAVE A HIGHSCHOOL EDUCATION AND BE ABLE TO TYPE 30 WORDS A MINUTE IN THE 14WEEK COURSE MS BAGWELL LEARNED EIGHT COMPUTER LANGUAGES AND PROGRAMS LIKE LOTUS 123 AND MICROSOFT WORKS THREE WEEKS AFTER GRADUATING IN 1991 SHE LANDED A JOB WITH THE UNIVERSITY OF ARKANSAS FOR MEDICAL SCIENCES HOSPITAL WHERE SHE NOW EARNS 16000 A YEAR AND HANDLES THE PAYROLL FOR 100 NUTRITIONDEPARTMENT EMPLOYEES I GOT MY CONFIDENCE BACK SHE SAYS OUR HOUSE'S IMPACT HAS BEEN LIMITED ONLY 81 HOMELESS AND LONGTERM UNEMPLOYED PEOPLE HAVE GRADUATED FROM THE COMPUTER PROGRAM SINCE IT BEGAN IN 1991 AT A COST OF 3252 PER STUDENT BUT OF THAT GROUP MORE THAN 80 HAVE FOUND JOBS MOSTLY COMPUTERRELATED AFTER GRADUATING FROM THE COURSE LAST FALL 21YEAROLD CHANTEL KING AND 20YEAROLD JOHN BURNETT A FORMERLY HOMELESS COUPLE GOT COMPUTER JOBS WITH THE CLINTON CAMPAIGN ACCOUNTING OFFICE THE TWO HAVE SINCE FOUND PERMANENT COMPUTER JOBS HE WORKS AT AN ART CENTER AND SHE WORKS FOR A FINANCIAL COMPANY THEY CAN NOW AFFORD TO SHARE AN APARTMENT RAY NORRIS STUMBLED AROUND WITH A BROKEN ANKLE AND LIVED UNDER BRIDGES IN THE DAYS BEFORE HE CAME TO THE SHELTER IN 1990 AFTER TAKING THE COURSE HE WORKED IN AN ADVERTISING AGENCY AND AT A MEDICAL CENTER BEFORE BEING LURED BACK TO OUR HOUSE TO HELP PLACE RESIDENTS IN JOBS USING A COMPUTER OF COURSE THE SHELTER ALSO OPENED AN APPLIANCE REPAIR SHOP THOSE WHO DON'T LIKE COMPUTERS CAN LEARN TO FIX LAMPS AND VACUUM CLEANERS PARTICIPANTS CAN STAY AS LONG AS NECESSARY TO GET BACK ON THEIR FEET BUT MR FLAHERTY A RETIRED AIR FORCE MASTER SERGEANT REQUIRES RESIDENTS WHO AREN'T IN TRAINING TO PRODUCE PROOF THEY HAVE MADE AT LEAST TWO JOB CONTACTS EACH DAY THOSE WHO DO WORK MUST SAVE THE LION'S SHARE OF THEIR PAYCHECKS THEY WRITE MONEY ORDERS TO THEMSELVES THAT THEY GET WHEN THEY LEAVE THIS HAS WORKED HERE AND IT CAN WORK ELSEWHERE SAYS MR FLAHERTY THE PROGRAM IS STILL ONEOFAKIND BUT IBM OFFICIALS WERE SO PLEASED THEY RECENTLY DONATED EIGHT COMPUTERS PLUS SOFTWARE AND PRINTERS TO A LOS ANGELES GROUP AS ARKANSAS FINDS NEW WAYS TO DEAL WITH ITS HOMELESS TENNESSEE GRAPPLES WITH ALTERNATIVES TO FOSTER HOMES AND STATE CUSTODY FOR TROUBLED CHILDREN BY STABILIZING FAMILIES IN CRISIS AND GIVING THEM A CHANCE TO RECOVER THE STATERUN FAMILYPRESERVATION PROGRAM CALLED HOME TIES PROMISES TO BE MORE EFFECTIVE AND LESS COSTLY LAST JULY CHRISTINE ARMSTRONG A 30YEAROLD SINGLE MOTHER IN NASHVILLE BECAME ALARMED ABOUT THE BEHAVIOR OF HER EIGHTYEAROLD DAUGHTER CHUTNEY WHO WAS STAYING OUT LATE AND GETTING INVOLVED SEXUALLY WITH TWO OLDER BOYS IN THE NEIGHBORHOOD MS ARMSTRONG FELT CHUTNEY SHOULD BE COMMITTED TO A PSYCHIATRIC HOSPITAL AT STATE EXPENSE WHERE SHE HAD BEEN TREATED TWO YEARS EARLIER AFTER SETTING FIRES IN THE HOUSE INSTEAD THE COURT REFERRED THE MOTHER AND DAUGHTER TO HOME TIES THERE THERAPIST LINDA EDWARDS CREATED AN INCENTIVE SYSTEM TO IMPROVE CHUTNEY'S CONDUCT AWARDING POINTS FOR GOOD BEHAVIOR AND TIME OUTS FOR BAD ACCRUED POINTS BROUGHT TRIPS TO A SCIENCE MUSEUM AND ICECREAM SHOP CHUTNEY SAYS SHE ESPECIALLY LIKED GOING ROLLER SKATING AND PLAYING FRISBEE WITH MS EDWARDS SOON CHUTNEY'S BEHAVIOR IMPROVED SHE CAME HOME ON TIME SPOKE THE TRUTH AND STOPPED HER SEXUAL EXPERIMENTS MS EDWARDS ALSO ARRANGED TREATMENT FOR CHRISTINE ARMSTRONG'S PERIODIC BOUTS OF DEPRESSION AND LONGERTERM COUNSELING FOR CHUTNEY TODAY THE ARMSTRONGS ARE DOING WELLTOGETHER TENNESSEE CREATED THE HOME TIES PROGRAM WHICH COURTS REFER PEOPLE TO ON A VOLUNTARY BASIS AFTER DISCOVERING THE STATE HAD THE SECOND HIGHEST RATE IN THE COUNTRY FOR PLACING CHILDREN UNDER 18 IN STATE HOSPITALS 97 PER 100000 COMPARED WITH 37 PER 100000 NATIONWIDE WE WERE GREAT ON BUILDING BUILDINGS AND THEN SAYING TO PARENTS 'YOU GIVE US YOUR KIDS AND WE'LL TAKE CARE OF THEM' SAYS TENNESSEE HOUSE MAJORITY LEADER BILL PURCELL WHO HAS CHAMPIONED THE PROGRAM SOME 3000 FAMILIES HAVE PARTICIPATED IN HOME TIES SINCE IT BEGAN IN 1989 AND 2400 MORE ARE EXPECTED THIS YEAR MORE THAN 30 STATES NOW HAVE SOME FORM OF SUCH FAMILYPRESERVATION SERVICES INCLUDING WASHINGTON MISSOURI KENTUCKY AND IOWA MICHIGAN CREDITS ITS PROGRAM FOR REDUCING THE NUMBER OF CHILDREN ENTERING FOSTER CARE MOST OF THE PROGRAMS SUPPLY INTENSE SOMETIMES DAILY TREATMENT AND INHOME MEETINGS FOR FOUR TO SIX WEEKS THERAPISTS TYPICALLY HANDLE ONLY TWO FAMILIES AT A TIME INSTEAD OF THE 50 OR MORE NORMALLY HANDLED BY A SOCIALSERVICES WORKER HOME TIES WORKERS WILL TAKE THEIR CLIENTS TO THE GROCERY STORE HELP THEM FIND JOBS GET THE ELECTRICITY RESTORED OR DO WHATEVER ELSE IT TAKES TO REDUCE FAMILY STRESS A UNIVERSITY OF TENNESSEE STUDY OF 619 CHILDREN WHO HAD BEEN INVOLVED IN HOME TIES FOUND THAT ABOUT 70 WERE STILL AT HOME AFTER A YEAR SAVING THE STATE AN ESTIMATED 45 MILLION PLACEMENTS IN FOSTER CARE AND INSTITUTIONS IN TENNESSEE DECLINED 19 IN 1991 AND 34 IN 1992 AFTER CONSECUTIVE 9 INCREASES IN 1989 AND 1990 ONE MONTH OF INTERVENTION COSTS HOME TIES 2255 PER FAMILY PAID BY STATES AND PRIVATE FOUNDATIONS BUT IT CAN SAVE THE 3000 OR MORE A YEAR THAT FOSTER CARE WOULD COST AND THE 10000 TO 100000 YEARLY COST OF INSTITUTIONAL CARE SOME CRITICS PLAY DOWN THE PROGRAM'S SUCCESS JOHN SCHUERMAN PROFESSOR OF SOCIAL WORK AT THE UNIVERSITY OF CHICAGO BELIEVES THAT MANY OF THE FAMILIES GETTING THE SERVICES WOULDN'T HAVE SPLIT UP IN ANY CASE SO IT ISN'T SURPRISING THEY ARE STILL TOGETHER A YEAR LATER BUT THE TENNESSEE PROGRAM HAS MADE BELIEVERS OF MANY PARTICIPANTS INCLUDING THE POOL FAMILY OF MCMINNVILLE LAST YEAR SQUABBLES BETWEEN 13YEAROLD TONYA AND HER MOTHER PATSY WERE TEARING THE FAMILY APART IN A PROTRACTED FIT OF RAGE ONE DAY TONYA ATTACKED HER MOTHER HER ADOPTIVE FATHER AND HER LITTLE BROTHER PATSY WANTED HER DAUGHTER TAKEN FROM THE HOME SHE AND HER HUSBAND WERE TALKING DIVORCE IT WAS EVERYBODY AGAINST EVERYBODY SHE SAYS LATE LAST YEAR A HOME TIES THERAPIST BEGAN MEETING ALMOST DAILY WITH THE POOLS THE THERAPIST DISCOVERED THAT TONYA WAS ANGUISHED OVER HER BIOLOGICAL FATHER'S REFUSAL TO SEE HER AND THAT MS POOL WHO HAD A STORMY RELATIONSHIP WITH HER FORMER HUSBAND FELT HOSTILE TOWARD TONYA FOR LOOKING SO MUCH LIKE HIM AFTER MORE THAN A MONTH OF EMOTIONAL CONVERSATIONS TEMPERS COOLED TODAY THE FAMILY IS LIVING TOGETHER IN RELATIVE PEACE THINGS ARE BETTER TONYA SAYS IN ANOTHER SOCIALPOLICY ARENA WHERE FAILURE IS THE NORM GENERAL WELFARE NEW YORK'S EMBRYONIC CHILD ASSISTANCE PROGRAM HAS FOUND A WAY TO HELP SINGLE MOTHERS AND THEIR FAMILIES OUT OF POVERTY WHILE ENCOURAGING WORK BEGUN IN 1988 THE CAP PROGRAM PROVIDES LOWINCOME MOTHERS GUARANTEED BENEFITS THAT COMBINED WITH WORK WILL RAISE THE FAMILY ABOVE THE FEDERAL POVERTY LINE 11890 A YEAR FOR A FAMILY OF THREE UNLIKE AID TO FAMILIES WITH DEPENDENT CHILDREN THE BASIC WELFARE PROGRAM CAP ENCOURAGES PEOPLE TO SAVE AND TO WORK CAP RECIPIENTS START OUT WITH ONLY ABOUT TWOTHIRDS THE BENEFIT LEVEL OF AFDC BUT WHILE AFDC BENEFITS ARE REDUCED ONE DOLLAR FOR EACH DOLLAR A RECIPIENT EARNS CAP BENEFITS DROP JUST 10 CENTS FOR EVERY DOLLAR UNTIL INCOME EXCEEDS THE POVERTY LEVEL AFTER THAT BENEFITS ARE REDUCED 66 CENTS ON EVERY DOLLAR EARNED UNTIL THE RECIPIENT'S INCOME IS 150 OF THE POVERTY LEVEL MAKING HER INELIGIBLE AND WHILE AFDC RECIPIENTS ARE PENALIZED IF THEY SAVE MORE THAN 1000 OR ACCUMULATE ASSETS THIS ISN'T THE CASE WITH CAP THE PROGRAM ALSO IS DIFFERENT FROM WORKFARE PROGRAMS WHICH OFTEN PROVIDE MAKEWORK JOBS AND HAVE NO TRANSITION TO SELFSUFFICIENCY THE CAP FORMULA WORKED FOR MS SZWEJBKA A FORESTVILLE NY MOTHER OF THREE WHO HAD BEEN ON AND OFF AFDC FOR YEARS AFTER A SERIOUS CAR ACCIDENT IN 1991 CAP OFFICIALS ENROLLED HER IN THE PROGRAM AND HELPED HER GET A JOB AS A SECRETARY THE JOB AND CAP MONEY RAISED HER MONTHLY INCOME TO MORE THAN 1100 FROM THE 580 SHE WAS MAKING FROM ODD JOBS AND AFDC MONEY BY THE END OF MARCH MS SZWEJBKA NOW 31 HAD GRADUATED FROM CAP I DIDN'T NEED HELP ANYMORE SHE SAYS THESE DAYS SHE WORKS PART TIME FOR THE POSTAL SERVICE AND SELLS LADY REMINGTON JEWELRY DOING SO WELL SHE WON A TRIP TO THE BAHAMAS AND A 500 CASH PRIZE SOMEDAY SHE PLANS TO OWN HER OWN GIFT STORE THOUGH CAP DOESN'T HAVE THE SORT OF TWOYEAR CUTOFF FOR BENEFITS THAT PRESIDENT CLINTON ENDORSES SUPPORTERS THINK IT MIGHT WORK AS AN INTERMEDIATE STEP TWO CAP BACKERS HAVE BEEN NAMED TO TOP POSTS AT THE HEALTH AND HUMAN SERVICES DEPARTMENT WHICH OVERSEES THE NATION'S WELFARE SYSTEM THE PROGRAM HAS SOME INFLUENTIAL CRITICS THE LAST THING IN THE WORLD THE US NEEDS IS ANOTHER ENTITLEMENT PROGRAM FOR CHILDREN BORN OUT OF WEDLOCK SAYS ROBERT RECTOR A SENIOR ANALYST FOR THE HERITAGE FOUNDATION A CONSERVATIVE THINK TANK IN WASHINGTON SAYS PAUL OFFNER CHIEF WELFARE ADVISER TO SEN DANIEL P MOYNIHAN OF NEW YORK THE JURY IS STILL OUT BUT AS WITH THE OUR HOUSE AND HOME TIES PROGRAMS CAP'S EARLY RETURNS ARE PROMISING ABT ASSOCIATES INC A CAMBRIDGE MASS POLICY RESEARCH FIRM HIRED BY THE STATE TO STUDY THE PROGRAM FOUND THAT PARTICIPANTS WORKED 25 MORE HOURS AND EARNED 25 MORE THAN MEMBERS OF A CONTROL GROUP AFTER TRIALS IN SEVEN UPSTATE NEW YORK COUNTIES STATE OFFICIALS HOPE TO TAKE CAP TO BROOKLYN THIS FALL AND AS THE CLINTON ADMINISTRATION SEARCHES FOR WAYS TO FIX THE NATION'S REVILED WELFARE SYSTEM THERE IS LITTLE DOUBT THAT CAP WILL GET A CLOSER LOOK SAYS ABT VICE PRESIDENT WILLIAM HAMILTON THESE RESULTS ARE REALLY PRETTY GOOD 9305170043 930517 U S WEST AND TIME WARNER TO FORM STRATEGIC ALLIANCE BABY BELL TO PAY 25 BILLION FOR STAKE AND A PARTNER IN TECHNOLOGY FOOTRACE BY WALL STREET JOURNAL STAFF REPORTERS JOHNNIE L ROBERTS AND LAURA LANDRO IN NEW YORK AND MARY LU CARNEVALE IN WASHINGTON U S WEST INC WILL INVEST 25 BILLION IN TIME WARNER INC'S CABLE AND ENTERTAINMENT OPERATIONS IN A STRATEGIC ALLIANCE THAT COULD PUT BOTH COMPANIES AT THE FOREFRONT OF THE REVOLUTION IN INTERACTIVE TELEVISION AND TELECOMMUNICATIONS THE TRANSACTION WILL MARK THE FIRST TIME ONE OF THE SEVEN BABY BELLS HAS MADE A MAJOR INVESTMENT IN A PRODUCER OF MOVIES AND TELEVISION SHOWS THAT ARE LIKELY TO BE CARRIED OVER THE PHONE NETWORK BY THE END OF THE DECADE DIRECTORS OF TIME WARNER AND U S WEST BASED IN ENGLEWOOD COLO MET SEPARATELY LAST NIGHT TO APPROVE THE TRANSACTION ACCORDING TO PEOPLE CLOSE TO THE TALKS 1 BILLION OF THE U S WEST INVESTMENT WOULD BE EARMARKED FOR SPENDING ON TIME WARNER'S VERSION OF THE ELECTRONIC SUPERHIGHWAY AND THE REST WOULD BE USED BY TIME WARNER FOR DEBT REPAYMENT BOTH COMPANIES DECLINED TO COMMENT PEOPLE CLOSE TO THE TALKS SAID THE TELEPHONE COMPANY WILL SHARE THE MANAGEMENT OF TIME WARNER'S CABLE OPERATIONS EQUALLY U S WEST WOULD THUS BE IN A UNIQUE POSITION TO HELP TIME WARNER UPGRADE ITS CABLE FACILITIES TO CARRY TRADITIONAL TELEPHONE CONVERSATIONS AND BYPASS LOCAL PHONE COMPANIES THIS WOULD PUT IT IN DIRECT COMPETITION WITH OTHER LOCAL PHONE COMPANIES FOR THE FIRST TIME TIME WARNER'S ROUGHLY YEARLONG TALKS WITH U S WEST WHICH BECAME KNOWN TWO MONTHS AGO WERE PART OF WIDERANGING CONTACTS IT HAS PURSUED WITH POTENTIAL TECHNOLOGY PARTNERS AMONG OTHERS TIME WARNER IS KNOWN TO HAVE HELD DISCUSSIONS WITH INTERNATIONAL BUSINESS MACHINES CO AMERICAN TELEPHONE & TELEGRAPH CO AND NYNEX CORP PEOPLE CLOSE TO THE TALKS SAID THE TRANSACTION HAS BEEN STRUCTURED TO CONFORM TO THE RESTRICTIONS OF THE CONSENT DECREE THAT BROKE UP THE BELL TELEPHONE EMPIRE IN THE 1980S BUT THE TRANSACTION COULD STILL FACE LEGAL AND REGULATORY CHALLENGES MOREOVER THE DEAL REFOCUSES ATTENTION ON AN OLD DEBATE INSIDE TIME WARNER ABOUT HOW BEST TO RAISE NEEDED CASH TO FINANCE EXPANSION AND REDUCE THE NEARLY 15 BILLION IN DEBT TAKEN ON FROM THE 1989 MERGER OF TIME INC AND WARNER COMMUNICATIONS INC CRITICS OF THE U S WEST AND TOSHIBA DEALS SAY THAT WHILE THEY PROVIDED MUCHNEEDED CASH TIME WARNER IS ESSENTIALLY GIVING AWAY A VALUABLE CHUNK OF THE CASH FLOW OF SOME OF ITS MOST ATTRACTIVE AND HEALTHY ASSETS CASH DISTRIBUTIONS TO THE PARTNERS IN THE BUSINESS ARE SAID TO START IN 1995 RATHER THAN SELL EQUITY TO U S WEST ONE INVESTMENT BANKER FAMILIAR WITH THE DEAL ARGUES TIME WARNER SHOULD NOW SELL EQUITY IN THE COMPANY AND RETAIN CONTROL OF ITS ASSETS WHAT DOES THE TIME WARNER SHAREHOLDER REALLY OWN WHEN THIS GETS THROUGH THIS INVESTMENT BANKER ASKS BUT ANOTHER WALL STREET EXECUTIVE INVOLVED IN TALKS BETWEEN OTHER PHONE COMPANIES AND CABLE COMPANIES SAYS THE MOVE IS A GOOD ONE FOR TIME WARNER SELLING EQUITY IN THE PUBLIC MARKETS AT TIME WARNER'S CURRENT STOCK PRICE WOULD NOT ALLOW IT TO GET SOCALLED PRIVATE MARKET VALUE FOR ITS ASSETS WHILE THE U S WEST INVESTMENT APPEARS TO VALUE THE CABLE AND FILM ASSETS AT MORE THAN 10 BILLION NOT INCLUDING DEBT CABLE ASSETS MIGHT NOT FETCH SUCH A HIGH PRICE IN PUBLIC EQUITY MARKETS CURRENTLY BECAUSE OF NEW REGULATIONS THAT CAST DOUBT ON FUTURE REVENUES AND PROFITS THIS LINE OF REASONING GOES WHAT IS LESS THAN CLEAR THIS EXECUTIVE SAYS IS WHY U S WEST WOULD INVEST SUCH A LARGE SUM TO BE A MINORITY INVESTOR EVEN IF U S WEST SHARES MANAGEMENT OF THE CABLE COMPANY TIME WARNER RETAINS MANAGEMENT CONTROL OF THE ENTERTAINMENT ASSETS IN THE PARTNERSHIP AND U S WEST LIKE THE JAPANESE INVESTORS GETS NO STAKE IN TIME WARNER'S HUGE RECORDED MUSIC AND PUBLISHING OPERATIONS GERALD R LEVIN TIME WARNER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS SAID THE COMPANY NEEDS A TECHNOLOGY PARTNER TO HELP IT EXPAND ITS PROPOSED ELECTRONIC SUPERHIGHWAY TO CITIES ALL ACROSS THE US AND ABROAD IN JANUARY THE COMPANY SAID IT WOULD LAUNCH A PROTOTYPE OF SUCH AN ELECTRONIC INTERACTIVE NETWORK WHICH WOULD DELIVER MOVIES ON DEMAND GAMES HOME SHOPPING SERVICES AND PHONE LINKS IN ORLANDO FLA BY THE END OF THE YEAR THE TIME WARNERU S WEST TALKS ALSO REFLECT AN ACCELERATING TREND BY THE TWO RIVAL INDUSTRIES TO JOIN INSTEAD OF FIGHT IN RECENT MONTHS FOR EXAMPLE PHONE COMPANIES HAVE BEEN AGGRESSIVELY SEEKING INVESTMENTS IN CABLE TV WITH THE ADVENT OF FIBER OPTICS AND COMPUTERIZED NETWORKS BOTH INDUSTRIES HAVE THE CAPACITY TO DELIVER VOICE AND DATA SERVICES TO HOMES AND BUSINESSES AND BOTH HAVE BEEN MAKING FORAYS INTO EACH OTHER'S MARKETS GENERALLY CABLE SYSTEMS ARE DEEMED TO HAVE THE ADVANTAGE NOW COAXIAL CABLE PIPELINES CAN CARRY SUNDRY VIDEO SIGNALS AND PHONE CALLS ALREADY AND CABLE COMPANIES ARE INVESTING HEAVILY IN FIBER OPTIC LINES AND COMPRESSION TECHNOLOGY TO SOUP UP THEIR NETWORKS TO CARRY LARGE VOLUMES OF DIGITIZED VIDEO SIGNALS AND PHONE SERVICE YET TIME WARNER AND OTHER CABLE TELEVISION COMPANIES MUST INVEST EVEN MORE AND THEY REQUIRE THE EXPERTISE SOPHISTICATED SWITCHING EQUIPMENT AND COMPUTERS OF PHONE COMPANIES FOR DELIVERING MANAGING AND STORING THE VAST LIBRARIES OF MOVIES DATA GAMES AND OTHER SERVICES THEY EXPECT TO OFFER PHONE COMPANIES ON THE OTHER HAND HAVE BEEN HAMSTRUNG FOR YEARS BY REGULATION THE CONSENT DECREE THAT BROKE UP THE BELL SYSTEM BARS THE REGIONAL PHONE COMPANIES FROM PROVIDING LONGDISTANCE SERVICES INCLUDING THE SATELLITE LINKS CABLE SYSTEMS USE TO OBTAIN CABLE PROGRAMMING SUCH AS HBO CNN ESPN AND DISCOVERY CHANNEL IN ADDITION THE 1984 CABLE ACT BARS ANY PHONE COMPANIES FROM OWNING A STAKE OF MORE THAN 5 IN ANY CABLE COMPANY THAT OPERATES IN ITS SERVICE TERRITORY THIS ISN'T EXPECTED TO PRESENT A PROBLEM FOR TIME WARNER AND U S WEST FOR U S WEST ACCESS TO TIME WARNER'S VIDEO LIBRARY AND EXTENSIVE CURRENT PROGRAMMING COULD GIVE IT A BIG EDGE AS THE NATION'S TELEPHONE COMPANIES UPGRADE THEIR NETWORKS TO CARRY VOICE DATA STILL IMAGES AND VIDEO PROGRAMMING EARLIER THIS YEAR U S WEST ANNOUNCED PLANS TO SPEND MORE THAN 2 BILLION A YEAR TO REBUILD ITS 14STATE TELEPHONE NETWORK TO CARRY INTERACTIVE FULLMOTION VIDEO SERVICES THE TRANSACTION ALSO MARKS THE FIRST TIME A BABY BELL HAS SIGNALED INTENTIONS TO INVADE OTHER PHONE COMPANIES' REGIONAL TERRITORIES TIME WARNER'S CABLE SYSTEMS COULD CARRY TELEPHONE CALLS TO AND FROM BUSINESSES DIRECTLY TO A LONGDISTANCE CARRIER CUTTING THE HEFTY ACCESS CHARGES THE LONGDISTANCE INDUSTRY PAYS LOCAL PHONE COMPANIES AND TIME WARNER HAS BEEN TESTING POCKET PHONES AND OTHER WIRELESS PERSONAL COMMUNICATIONS DEVICES THAT COULD TIE IN WITH ITS LOCAL CABLE NETWORKS 9305170042 930517 BUSINESS BRIEF ALUMINUM CO OF AMERICA CHAIRMAN EXPECTS COMPANY WILL STAY PROFITABLE IN '93 ALUMINUM CO OF AMERICA CHAIRMAN PAUL H O'NEILL SAID THAT HE HAS NO DOUBT ALCOA WILL REMAIN PROFITABLE THIS YEAR BUT THAT IT WON'T MEET ITS 10 RETURNONEQUITY TARGET FOR 1992 THE PITTSBURGH COMPANY POSTED A 114 BILLION LOSS HOWEVER EXCLUDING AN EXTRAORDINARY LOSS AND ACCOUNTING CHANGES OF 116 BILLION ALCOA'S INCOME FOR THE YEAR WAS TO 224 MILLION DOWN FROM 627 MILLION IN 1991 SPEAKING AT THE COMPANY'S ANNUAL MEETING MR O'NEILL SAID HE EXPECTS ALCOA COMPETITORS ALCAN ALUMINIUM LTD REYNOLDS METALS CO AND AMAX INC TO REMAIN IN THE RED FOR THE REST OF THE YEAR HE ALSO SAID COMPETITORS MAY REDUCE CAPACITY MR O'NEILL SAID HE DIDN'T EXPECT AN END TO RUSSIAN ALUMINUM SHIPMENTS WHICH HAVE BEEN DEPRESSING WORLD PRICES MR O'NEILL SAID HE IS OPTIMISTIC THE COMPANY WILL REACH A NEW LABOR ACCORD WITHIN TWO WEEKS TO REPLACE THE EXISTING AGREEMENT EXPIRING AT THE END OF THE MONTH TALKS BEGIN TODAY HE SAID ALCOA HOPES TO REPLACE THE COMPANY'S CURRENT HEALTH COVERAGE WITH A VARIETY OF OPTIONS UNDER WHICH HOURLY EMPLOYEES LIKE SALARIED WORKERS WOULD BE REWARDED FOR ASSUMING HIGHER DEDUCTIBLES HE OBJECTED TO UNION CALLS FOR GUARANTEED EMPLOYMENT 9305170041 930517 BUSINESS BRIEF NORTHGATE EXPLORATION LTD FIRM AGREES TO SELL STAKE IN CAMPBELL RESOURCES INC NORTHGATE EXPLORATION LTD SAID IT AGREED WITH UNDERWRITERS TO SELL ITS 345 STAKE IN CAMPBELL RESOURCES INC FOR 294 MILLION CANADIAN DOLLARS US231 MILLION OR 85 CANADIAN CENTS 65 US CENTS A SHARE CAMPBELL WAS QUOTED FRIDAY AT 75 US CENTS A SHARE DOWN 125 US CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TORONTOBASED NORTHGATE'S CHIEF FINANCIAL OFFICER PATRICK DOWNEY SAID THE SALE REPRESENTS NORTHGATE'S LAST BIG CORE INVESTMENT NORTHGATE WILL BE LEFT WITH ABOUT C60 MILLION IN CASH AND A 52 STAKE IN NORTHWEST GOLD CORP A GOLD PRODUCER THE UNDERWRITERS LED BY WOOD GUNDY INC OF TORONTO PLAN TO RESELL THE SHARES OF CAMPBELL RESOURCES A TORONTO MINING CONCERN TO INSTITUTIONAL INVESTORS MR DOWNEY SAID THE SALE TO UNDERWRITERS IS EXPECTED TO CLOSE JUNE 3 9305170040 930517 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CARTER HAWLEY HALE STORES INC AN OFFERING OF 10 MILLION NEWLY ISSUED COMMON SHARES VIA SALOMON BROTHERS INC COMMERCE BANCORP INC AN OFFERING OF 20 MILLION OF 10YEAR SUBORDINATED NOTES VIA WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS AND FOLEY MUFSON HOWE & CO GOLD RESERVE CORP THE REGISTRATION OF 38 MILLION ISSUED SHARES OF COMMON STOCK 500000 ISSUED COMMON STOCK PURCHASE WARRANTS AND 500000 SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THE WARRANTS QUALCOMM INC AN OFFERING OF 25 MILLION COMMON SHARES VIA LEHMAN BROTHERS BEAR STEARNS & CO INC ALEX BROWN & SONS INC AND GOLDMAN SACHS & CO SIGNAL TECHNOLOGY CORP AN OFFERING OF 17 MILLION COMMON SHARES 9305170038 930517 STOCK SALE SET BY SOUTHERN PACIFIC RAIL INITIAL PUBLIC OFFERING IS SET TO RAISE 550 MILLION DEBT ISSUE ALSO PLANNED BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOUTHERN PACIFIC RAIL CORP THE NATION'S SIXTH LARGEST FREIGHT RAILROAD COMPANY IS APPROACHING THE CAPITAL MARKETS TO HELP EASE ITS DEBT COSTS AND PROVIDE FUNDS TO IMPROVE ITS OPERATIONS THE SAN FRANCISCO COMPANY HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO RAISE ABOUT 550 MILLION THROUGH AN INITIAL PUBLIC OFFERING OF COMMON STOCK AND PLANS A SEPARATE 250 MILLION DEBT OFFERING CONTINGENT ON THE STOCK SALE MAJOR OWNERS OF THE 29 BILLIONREVENUE COMPANY INVESTOR PHILIP F ANSCHUTZ OF DENVER AND A MORGAN STANLEY & CO ENTITY SAY THEY HAVE MADE SOME PROGRESS IN CUTTING COSTS AND RESTORING PROFITABILITY BUT THE OFFERING DOCUMENT MAKES CLEAR THAT SOUTHERN PACIFIC IS STILL A LONG WAY FROM GENERATING ENOUGH FUNDS TO COVER THE SPENDING NEEDS OF ITS 15000MILE WESTERN US RAILROAD SYSTEM THE COMPANY CONTINUES TO RELY ON THE SALE OF TRANSIT CORRIDORS REAL ESTATE AND OTHER ASSETS WHICH TOTALED 14 BILLION FROM 1989 THROUGH 1992 TO COVER OPERATING COSTS AND IT WARNS THAT CASH FLOWS FROM RAIL OPERATIONS WILL CONTINUE TO BE INSUFFICIENT FOR THE NEXT SEVERAL YEARS LAST YEAR THE COMPANY WOULD HAVE NEEDED 2363 MILLION OF ADDITONAL OPERATING EARNINGS TO COVER INTEREST COSTS AND CAPITAL SPENDING WITHOUT RELYING ON ASSET SALES AND IT HAS HAD TO OBTAIN WAIVERS FROM LENDERS TO PREVENT A DEFAULT OR PROVIDE A GREATER MARGIN FOR COMPLIANCE WITH LENDING AGREEMENTS THE STOCK AND DEBT OFFERINGS WILL PROVIDE SOME BALANCE SHEET HELP FUNDS WILL BE USED TO RETIRE 1214 DEBT PAY OFF BANK CREDIT FACILITIES PURCHASE PREVIOUSLY LEASED EQUIPMENT AND REDEEM 75 MILLION OF 12 PREFERRED STOCK UNDERWRITERS INCLUDE MORGAN STANLEY KIDDER PEABODY & CO AND SALOMON BROTHERS INC MR ANSCHUTZ CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER WILL OWN ABOUT 56 OF THE COMPANY AFTER THE OFFERING WHILE A MORGAN STANLEY FUND WILL OWN ABOUT 15 SP PLANS TO SELL 22 MILLION SHARES IN THE US AND CANADA AND 55 MILLION SHARES ELSEWHERE AT AN ESTIMATED OFFERING PRICE OF 20 A SHARE THE COMPANY OPERATES IN 15 WESTERN STATES CONNECTING WITH EASTERN RAILROADS AT CHICAGO ST LOUIS KANSAS CITY KAN MEMPHIS TENN AND NEW ORLEANS IT IS THE SECOND LARGEST US RAIL CARRIER OF SHIPMENTS DESTINED FOR MEXICO SOME 23 OF ITS FREIGHT REVENUE COMES FROM MARINE CONTAINERS AND HIGHWAY TRAILERS ON FLAT CARS MAKING SP THE LARGEST US RAIL HANDLER OF CONTAINER TRAFFIC CHEMICALS AND PETROLEUM PRODUCTS GENERATE 20 OF REVENUE FOOD AND AGRICULTURAL PRODUCTS 14 AND PAPER AND FOREST PRODUCTS 14 SP'S RAILROAD TRACES ITS HISTORY FROM THE 1860S AS THE WESTERN HALF OF THE NATION'S FIRST TRANSCONTINENTAL RAIL LINE THE COMPANY FELL INTO SOMETHING OF A STRATEGIC BLACK HOLE IN THE 1980S WHEN SANTA FE PACIFIC CORP TRIED TO MERGE WITH SOUTHERN PACIFIC THE COMPANY WAS HELD IN TRUST FOR FIVE YEARS BEFORE THE MERGER WAS BLOCKED BY THE INTERSTATE COMMERCE COMMISSION IN 1986 THE ANSCHUTZ INTERESTS AND MORGAN STANLEY BOUGHT SOUTHERN PACIFIC IN 1988 FOR 102 BILLION PLUS ASSUMPTION OF 780 MILLION IN DEBT MR ANSCHUTZ PREVIOUSLY HAD PURCHASED THE DENVER & RIO GRANDE WESTERN RAILROAD THE BUYERS TOOK OVER A COMPANY BURDENED WITH EXCESS UNPROFITABLE AND LOWDENSITY TRACK THE FILING SAID THE RAILROAD PLANS TO SELL OR ABANDON 3000 MILES OF BRANCH LINES IN THE NEXT YEAR WHICH WILL REDUCE MAINTENANCE AND CAPITAL AND OTHER COSTS DURING THE PAST THREE YEARS THROUGH 1992 THE NEW OWNERS CUT THE NUMBER OF EMPLOYEES 8 AND EXPECT TO CUT ANOTHER 1600 EMPLOYEES THIS YEAR TOTAL EMPLOYMENT AT THE END OF MARCH WAS 22085 IT SAID REVENUE TONMILES PER EMPLOYEE HAVE RISEN 25 AND CARLOADS PER EMPLOYEE HAVE RISEN 28 IN 1992 SP HAD OPERATING REVENUE OF 288 BILLION INTEREST EXPENSE OF 143 MILLION AND NET INCOME OF 331 A YEAR EARLIER REVENUE WAS 279 BILLION INTEREST EXPENSE 152 MILLION AND THE COMPANY HAD A NET LOSS OF 1757 MILLION INCLUDING A SPECIAL CHARGE OF 2599 MILLION FOR EMPLOYEE SEPARATION AND RELOCATION COSTS RELATED TO LABOR AGREEMENTS AND OTHER STEPS THE COMPANY HAD A NET LOSS OF 1107 MILLION IN THE LATEST FIRST QUARTER INCLUDING A 1042 MILLION AFTERTAX CHARGE FOR CHANGES IN ACCOUNTING TREATMENT OPERATING EARNINGS ABOUT DOUBLED TO 209 MILLION FROM 107 MILLION DESPITE THE ADVERSE IMPACT OF SEVERE WEATHER AND FLOODING IN THE WEST A DROP IN AUTO SHIPMENTS AND OTHER FACTORS RAILROAD FREIGHT REVENUE FELL 47 IN THE FIRST QUARTER TO 6763 MILLION THE COMPANY DOES HAVE ABOUT 13 MILLION OF NET OPERATING LOSS CARRYOVERS THAT COULD BE USED TO OFFEST FUTURE INCOME TAXES THE FILING SAYS IT HAS NO PLANS TO PAY CASH DIVIDENDS SOUTHERN PACIFIC RAIL CORP HAS ABOUT 13 BILLION OF NET OPERATING LOSS CARRYOVERS THAT COULD BE USED TO OFFSET FUTURE INCOME TAXES IN AN ARTICLE MONDAY ABOUT THE COMPANY'S PLANS FOR AN INITIAL PUBLIC OFFERING THE FIGURE WAS MISSTATED AS 13 MILLION 9305170037 930517 BUSINESS BRIEF AMPEX INC COMPANY IS PLANNING TO SELL MEDIA UNIT TO REDUCE DEBT AMPEX INC SAID IT PLANS TO SELL ITS MEDIA UNIT WHICH WOULD SERVE TO ELIMINATE 160 MILLION OF ITS DEBT AMPEX BASED IN REDWOOD CITY CALIF MAKES RECORDING SYSTEMS MEDIA PRODUCES MAGNETIC RECORDING TAPE FOR PROFESSIONAL AUDIO AND VIDEO USES THE SALE IS NOT EXPECTED TO MATERIALLY AFFECT AMPEX'S CASH FLOW THE COMPANY SAID CASH PROCEEDS FROM THE SALE WILL BE RETAINED BY MEDIA TO REPAY DEBT AMPEX SAID AS OF DEC 31 1992 MEDIA HAD 160 MILLION IN DEBT THE COMPANY HASN'T ANNOUNCED A PRICE FOR THE UNIT ALTHOUGH POTENTIAL BUYERS HAVE NOT YET BEEN CONTACTED THE COMPANY SAID IT ANTICIPATES A SALE OR SPINOFF TRANSACTION WILL BE COMPLETED SOMETIME IN 1993 AMPEX SAID THE PLANNED SALE WILL ALLOW IT TO FOCUS ON DEVELOPING SPECIALIZED RECORDING TAPE FOR ITS PROPRIETARY LINE OF DIGITAL RECORDERS IN NATIONAL OVERTHECOUNTER TRADING FRIDAY AMPEX CLOSED AT 45625 UP 10625 9305170036 930517 WHO'S NEWS AMERICAN INTERNATIONAL GROUP INC AMERICAN INTERNATIONAL GROUP INC NEW YORK EVAN GREENBERG 38 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THE INTERNATIONAL INSURER'S SUBSIDIARIES IN JAPAN AND SOUTH KOREA MR GREENBERG CURRENTLY CHIEF OPERATING OFFICER IS A SON OF MAURICE GREENBERG CHAIRMAN AND CHIEF EXECUTIVE OF AIG HE SUCCEEDS HOUGHTON FREEMAN WHO'S RETIRING FROM THE SUBSIDIARIES AND RETURNING TO THE US MR FREEMAN 71 WILL CONTINUE AS A DIRECTOR OF THE PARENT AND UNDERTAKE A NUMBER OF SPECIAL ASSIGNMENTS 9305170035 930517 INTERNATIONAL FRENCH BANKRUPTCIES PARIS THE NUMBER OF CORPORATE BANKRUPTCIES LIQUIDATIONS AND LEGAL SETTLEMENTS IN FRANCE FELL 37 IN FEBRUARY TO A SEASONALLY ADJUSTED 4426 FROM 7007 IN JANUARY THE NATIONAL STATISTICS INSTITUTE SAID FEBRUARY'S LEVEL WAS BELOW THE 5055 REGISTERED IN DECEMBER AND NOVEMBER'S 4597 9305170034 930517 MANAGER'S JOURNAL LIFE IN A JAPANESE RESEARCH LAB BY NICK ULMAN ATSUGI JAPAN THE DIM LABORATORY OF NIPPON TELEGRAPH & TELEPHONE CORP IS LIGHTED BY THE GLOW OF TOPOFTHELINE OSCILLOSCOPES AND BLINKING DIGITAL DISPLAYS THE VERY BEST THAT A SEEMINGLY UNLIMITED RESEARCH BUDGET CAN BUY BUT AS AN NTT RESEARCH ENGINEER BENDS OVER HIS LAB TABLE TO ALIGN A LASER EXPERIMENT HE ENCOUNTERS A SNAFU HOLES IN A MIRROR MOUNT ARE DRILLED IN AN INCONVENIENT PLACE SUCH A PROBLEM WOULD QUICKLY SEND A RESEARCHER IN A TOP U S ACADEMIC OR CORPORATE LAB TO THE MACHINE SHOP BUT NTT LACKS A MACHINE SHOP ITS SCIENTISTS BUY THE BEST BUT THEY HAVE NO PLACE TO TINKER MODIFY AND INNOVATE THE LASER EXPERIMENT GRINDS TO A HALT AS THE RESEARCHER ORDERS ANOTHER PART A MONTH IN NTT'S NONLINEAR OPTICAL DEVICE RESEARCH GROUP OFFERED THIS AMERICAN SCIENTIST FIRSTHAND EXPERIENCE OF THE CORPORATE CULTURE THAT DISTINGUISHES JAPANESE FROM AMERICAN RESEARCH THE JAPANESE ARE NEITHER MASOCHISTICALLY INTENSE LABORERS NOR A RACE OF SCIENTIFIC GENIUSES NOR EVEN TERRIBLY EFFICIENT IT IS TRUE HOWEVER THAT THE DAILY ROUTINE OF JAPANESE RESEARCHERS EMPHASIZES GETTING ALONG IN GROUPS STRIVING FOR COMPANY NOT PERSONAL SUCCESS AND TRYING TO PRODUCE USEFUL PRODUCTS US SCIENCE BY CONTRAST IS HERODRIVEN YOUNG SCIENTISTS DREAM OF PROPOSING OUTLANDISH IDEAS WHOSE SUCCESS WILL STUN THE OLD GUARD AMERICANS CONTINUE TO REALIZE BRILLIANT NEW RESULTS EVERY YEAR BUT WHILE US SCIENTISTS ARE NOT ABOUT TO BE OVERTAKEN IN THE RACE FOR NOBEL PRIZES THE JAPANESE ARE FAR AHEAD IN THEIR ABILITY TO EMPLOY NEW RESEARCH RESULTS IN SALABLE GOODS THE QUICK TRANSFER FROM LAB TO FACTORY IS ONE BENEFIT OF THEIR RESEARCH CULTURE ABOUT 1000 RESEARCHERS WORK AT NTT ATSUGI A LARGE MODERN BUILDING IN THE SHADOW OF THE OYAMA MOUNTAINS THEIR MISSION IS TO DEVELOP NEW OPTICAL AND ELECTRONIC TECHNOLOGY TO FULFILL NTT'S VISION OF VISUAL INTELLIGENT AND PERSONAL SERVICE FOR THE 21ST CENTURY SHIGEO ISHIBASHI 27 IS ONE OF THOSE RESEARCHERS A BACHELOR HE LIVES IN A SMALL ROOM IN A COMPANY DORMITORY AND ARRIVES EARLY TO WORK EACH DAY STOPPING BY A LOCKER ROOM TO CHANGE INTO LIGHT BLUE UNIFORM PANTS A MATCHING JACKET AND WORK SHOES HIS OFFICE IS ONE LARGE ROOM WITH DESK CUBICLES FOR 40 RESEARCH ENGINEERS AND FOUR GROUP LEADERS AFTER THE RITUAL MORNING GREETINGS AND A CUP OF TEA MR ISHIBASHI DISCUSSES A PROGRESS REPORT ON HIS FIRST 18 MONTHS AT THE COMPANY WITH HIS MENTOR A SENIOR RESEARCH ENGINEER THREE CUBICLES AWAY BEFORE STARTING IN THE LAB HE HAD THREE MONTHS OF PRACTICAL TRAINING IN OUTDOOR TELEPHONE LINE WORK RETAIL PHONE SALES AND ANSWERING CUSTOMER COMPLAINTS MR ISHIBASHI HAS UNDERGRADUATE AND MASTER'S DEGREES IN ELECTRICAL ENGINEERING FROM KYOTO UNIVERSITY NEW RECRUITS HARDLY EVER HAVE DOCTORAL DEGREES BECAUSE OF THE SORRY STATE OF FUNDING IN JAPANESE UNIVERSITIES RESEARCH IS MUCH MORE EFFECTIVELY CARRIED OUT IN CORPORATE LABS EVEN THE PRESTIGIOUS TOKYO UNIVERSITY IS DARK RUNDOWN AND IMPOVERISHED IN OPTOELECTRONICS NTT NEC SONY AND FUJITSU ARE AMONG THE CORPORATIONS WITH BIG RESEARCH EFFORTS AND EACH TRAINS ITS RESEARCH STAFF INHOUSE SOME OF THE NTT RESEARCHERS WILL EARN PHDS BASED ON THEIR WORK AT THE COMPANY BUT A DOCTORATE IS NOT A PREREQUISITE FOR PROFESSIONAL ADVANCEMENT IN FACT ONTHEJOB TRAINING IS SIMILAR TO THE RESEARCH PART OF AN AMERICAN PHD PROGRAM MANY OF MR ISHIBASHI'S REPORTS MUST BE WRITTEN IN ENGLISH LIKE OTHER NTT RESEARCHERS HE HAS HAD EIGHT YEARS OF ENGLISH IN SCHOOL ALTHOUGH IT'S A STRUGGLE HE CAN WRITE A DETAILED TECHNICAL REPORT THAT AN AMERICAN CAN UNDERSTAND SPEAKING ENGLISH HOWEVER IS MUCH MORE DIFFICULT FOR MR ISHIBASHI NINETY MINUTES OF WEEKLY ENGLISH CONVERSATION CLASS NTT PAYS HALF THE COST DON'T SEEM TO HELP MUCH OF COURSE HARDLY ANY US SCIENTISTS CAN UNDERSTAND MUCH LESS READ JAPANESE A FACT THAT MAY COME BACK TO HAUNT US RESEARCHERS IN THE FUTURE NTT'S RESPECTIVE RESEARCH GROUPS USUALLY EAT LUNCH TOGETHER IN THE COMPANY CAFETERIA AFTER 15 OR 20 MINUTES EVERYONE IS FINISHED AND AMBLES BACK TO THE LAB TO PLAY COMPUTER GAMES AND DRINK TEA BEFORE RESUMING WORK BECAUSE NTT IS TWOTHIRDS OWNED BY THE GOVERNMENT AND FOCUSES ON SERVICE AS OPPOSED TO SELLING PRODUCTS THERE IS ONLY MODERATE PRESSURE TO DO APPLIED WORK STILL THE RESEARCHERS SAY THAT THE DECIDING FACTOR IN GETTING THEIR PROJECTS APPROVED IS THE POSSIBILITY OF PUTTING THEIR RESULTS TO PRACTICAL USE MR ISHIBASHI IS CONCENTRATING ON MAKING A MINIATURE LASER BECAUSE ITS POTENTIAL TO NTT'S SERVICES IS SO GREAT ON AVERAGE EACH RESEARCHER AT NTT CAN CLAIM ONE 4FOOTBY10FOOT OR BIGGER HEAVY STEEL OPTICS TABLE AS HIS OWN BUT IT IS COMMON TO SEE TWO OR THREE MEN THERE AREN'T ANY WOMEN RESEARCHERS INTENTLY HUNCHED OVER THE SAME EXPERIMENT WHEN EXPERIMENTS ARE BEING SET UP ALIGNED AND RUN THERE IS CONSTANT CHATTER IN THE US RESEARCHERS MORE OFTEN WORK ALONE THAN IN SUCH GROUPS AT LEAST ONCE A MONTH THE RESEARCH GROUP HEADS TO A LOCAL RESTAURANT OR BAR MR ISHIBASHI LEAVES HIS CAR IN THE NTT LOT AND TAKES THE BUS BECAUSE HE KNOWS HE'LL BE TOO DRUNK TO DRIVE BY EVENING'S END THE BOSS GIVES A SHORT TOAST TO COMMENCE DRINKING GLASSES OF JAPANESE BEER ARE KEPT FILLED ALL NIGHT AFTER A WHILE A BIG SPREAD OF SUSHI APPEARS ALONG WITH BOTTLES OF SAKE THE BOSS CONSIDERS HIMSELF A SAKE EXPERT AND HE PROVES IT SOMETIMES A YOUNGER MAN FALLS ASLEEP AT THE TABLE BUT HE'S AWAKE AGAIN IN 20 MINUTES READY FOR MORE AT AROUND 9 PM EVERYONE CLAPS HIS HANDS ONCE ON CUE LIKE THE REST MR ISHIBASHI STUMBLES ONTO A TRAIN TO RETURN TO HIS COMPANY DORMITORY NTT LIFE DEMANDS CONSTANT AND COMPLETE DEDICATION TO THE COMPANY IN RETURN ALL THE NEEDS OF AN EMPLOYEEFOOD HOUSING AND ENTERTAINMENTARE PROVIDED FOR A JAPANESE COMPANY DOESN'T HIRE WORKERS IT ADOPTS THEM AN AMERICAN MIGHT FIND THE CONSTANT COMPANY OF HIS COLLEAGUES STIFLING BUT AFTER A LONG DAY AT THE LAB AND A BEERY NIGHT MR ISHIBASHI IS COMPLETELY AT EASE RELAXING IN A BOILING HOT TUB WITH A COUPLE OF OTHER RESEARCHERS MR ULMAN IS A GRADUATE STUDENT IN PHYSICS AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY 9305170033 930517 BUSINESS BRIEF FOREST CITY ENTERPRISES INC GRUPO PROTEXA OF MEXICO FORMS VENTURE WITH UNIT FOREST CITY ENTERPRISES INC SAID ITS FOREST CITY DEVELOPMENT UNIT ENTERED INTO A JOINTVENTURE PARTNERSHIP WITH GRUPO PROTEXA TO DEVELOP AND OWN SHOPPING MALLS IN MEXICO THE JOINT VENTURE MARKS THE ENTRY INTO THE MEXICAN MARKET FOR FOREST CITY ENTERPRISES FOREST CITY IS A CLEVELANDBASED DEVELOPER BUILDER AND OPERATOR OF REAL ESTATE THE JOINT VENTURE WILL FOCUS ON DEVELOPING MALLS IN MEXICO'S MAJOR CITIES FOREST CITY WILL USE ITS CONNECTIONS TO TRY TO ATTRACT MAJOR US DEPARTMENT STORES AND RETAILERS TO THE MEXICAN MARKET THERE IS PENTUP DEMAND AMONG MEXICAN CONSUMERS FOR AMERICAN RETAIL GOODS ESPECIALLY WOMEN'S FASHIONS JAMES RATNER FOREST CITY DEVELOPMENT'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID MEXICO'S GRUPO PROTEXA HAS INTERESTS IN REAL ESTATE TRANSPORTATION CONSTRUCTION MANUFACTURING AND OFFSHORE DRILLING 9305170032 930517 INTERNATIONAL OLIVETTI PRESIDENT CONCEDES THAT FIRM PAID BRIBES ROME REUTER CARLO DE BENEDETTI PRESIDENT OF COMPUTER GIANT ING C OLIVETTI & CO CONCEDED YESTERDAY THAT HIS COMPANY HAD PAID BRIBES TO HELP SECURE PUBLIC CONTRACTS I ONLY GAVE IN TO PRESSURE FROM POLITICAL PARTIES WHEN I FOUND IT NECESSARY TO DEFEND THE SURVIVAL OF THE COMPANY AND THE INTERESTS OF TENS OF THOUSANDS OF WORKERS AND OF SHAREHOLDERS HE SAID IN A STATEMENT OLIVETTI RELEASED THE STATEMENT AFTER MR DE BENEDETTI WENT WITHOUT BEING SUMMONED TO SEE MAGISTRATE ANTONIO DI PIETRO A LEADER OF THE MILAN CORRUPTION PROBE THAT HAS CUT A SWATHE THROUGH ITALY'S POLITICAL AND BUSINESS ESTABLISHMENT OVER THE LAST 15 MONTHS LAST MONTH IN A DEPOSITION TO MILAN JUDGES ITALIAN AUTO GIANT FIAT SPA ADMITTED PAYING KICKBACKS TO POLITICIANS TO SECURE PUBLICWORKS CONTRACTS MR DE BENEDETTI HAD MAINTAINED THAT OLIVETTI WASN'T INVOLVED IN ILLEGALLY FUNDING POLITICAL PARTIES BUT RECENT REPORTS SAID AN ARRESTED BUSINESSMAN HAD POINTED THE FINGER AT THE COMPANY IN HIS STATEMENT MR DE BENEDETTI SAID OLIVETTI HAD PAID ABOUT 68 MILLION TO OBTAIN CONTRACTS WITH THE STATE POSTAL SERVICES OVER FOUR YEARS 9305170031 930517 BUSINESS BRIEF AERO SYSTEMS INC COURT FINES FIRM 410000 IN IRANIAN ARMS EXPORT CASE AERO SYSTEMS INC MIAMI SAID IT WAS SENTENCED IN FEDERAL COURT IN WASHINGTON TO PAY FINES TOTALING 410000 IN CONNECTION WITH ITS NOV 16 1992 CONVICTION OF ARMS EXPORT VIOLATIONS EVEN THOUGH WE CONTINUE TO MAINTAIN OUR INNOCENCE WE ARE VERY PLEASED THAT WE CAN NOW PUT THIS MATTER BEHIND US AND CONCENTRATE OUR EFFORTS AND RESOURCES ON BUSINESS SAID ROBERT G HOLMES AERO'S PRESIDENT AERO THREE OF ITS SUBSIDIARIES AND A FORMER VICE PRESIDENT WERE CONVICTED OF CONSPIRACY AND 11 COUNTS OF TRANSFERRING MILITARY AIRCRAFT COMPONENTS TOTALING 73 MILLION TO IRAN 9305170030 930517 BUSINESS BRIEF AUSTRALIA & NEW ZEALAND BANKING AFTERTAX PROFIT FELL 58 IN HALF TAX CHANGE CITED ANZ SAID PROFIT AFTER TAX BUT BEFORE UNUSUAL ITEMS ROSE 257 TO A1703 MILLION FROM A1355 MILLION THE MELBOURNE AUSTRALIA BANK SAID THE UNUSUAL LOSS WHICH TOTALED A982 MILLION FOR THE HALF WAS CAUSED BY THE GOVERNMENT'S RECENT CUT IN AUSTRALIA'S CORPORATE TAX RATE WHICH REDUCED THE VALUE OF THE BANK'S NET DEFERRED TAX ASSETS THE COMPANY'S DIVIDEND 10 AUSTRALIAN CENTS REMAINS UNCHANGED 9305170029 930517 BUSINESS BRIEFS ROCHESTER TELEPHONE CORP COMPLETED THE SALE OF ITS 167 SHARE OF STATESBORO CELLULAR INC TO ALLTEL CORP TERMS WEREN'T DISCLOSED WHIRLPOOL CORP PLANS TO FORM A JOINT VENTURE WITH TECO ELECTRIC & MACHINERY CO OF TAIWAN TO MARKET AND DISTRIBUTE HOME APPLIANCES IN TAIWAN DEERE & CO SIGNED A LETTER OF INTENT TO SELL ITS JOHN DEERE FOUNDRY TO AN AFFILIATE OF AMERICAN BAILEY CORP TERMS WEREN'T DISCLOSED HEWLETTPACKARD CO AGREED IN PRINCIPLE TO ACQUIRE BT&D TECHNOLOGIES LTD OF ENGLAND A JOINT VENTURE OF DUPONT CO AND BRITISH TELECOMMUNICATIONS PLC TERMS WEREN'T DISCLOSED MONSANTO CO ACQUIRED FOR 400 MILLION CHEVRON CORP'S ORTHO CONSUMER PRODUCTS DIVISION WHICH PRODUCES GARDENINGRELATED PRODUCTS EQUIPMENT AND BOOKS ADVANCED FINANCIAL INC SAID ITS CONTINENTAL MORTGAGE INC UNIT ACQUIRED 185 MILLION OF RESIDENTIAL SERVICING RIGHTS FROM THE RESOLUTION TRUST CO GTE CORP SIGNED A DEFINITIVE AGREEMENT TO SELL ITS TELEPHONE SERVICE PROPERTIES IN KANSAS TO LYNCH CORP GREENWICH CONN 9305170028 930517 GLOBAL VIEW A DANISH NO' TO MAASTRICHT MIGHT BE A FAVOR TO EUROPE BY GEORGE MELLOAN ONE HEARS THAT THE DANES WILL VOTE AGAIN TOMORROW ON THE MAASTRICHT TREATY THEY REJECTED LAST JUNE BUT IN FACT THEY ARE NOT VOTING ON THAT TREATY AT ALL THEY ARE VOTING ON A NEW VERSION THAT GRANTS THEM OPTOUTS UNTIL 1996 FROM THREE OF THE TREATY'S MOST IMPORTANT GOALS A COMMON DEFENSE COMMON CURRENCY AND COMMON CITIZENSHIP THE OPTOUTS WERE CONTRIVED AT THE EUROPEAN COMMUNITY'S DECEMBER SUMMIT TO BRIBE THE DANES INTO VOTING YES IN EFFECT THEY PUT BEFORE THE DANES A TREATY THAT IS MORE ANTIMAASTRICHT THAN MAASTRICHT EC LAWYERS SWEATING IN THE EDINBURGH SUMMIT GLARE TIMIDLY ASKED FOR A FEW WORDING CHANGES AND THEN ASSURED ANXIOUS HEADS OF STATE AND GOVERNMENT THAT THE DANISH EXCEPTIONS WOULD NOT REQUIRE A RISKY NEW ROUND OF RATIFICATION VOTES BOLDER LEGAL EAGLES HOWEVER ARE ASKING HOW GOVERNMENT HEADS CAN APPROVE FUNDAMENTAL CHANGES IN A TREATY ENTIRELY ON THEIR OWN THESE CHALLENGES MEAN THAT THE DANES NOT ONLY HAVE TO DECIDE WHETHER TO VOTE YES OR NO BUT WHETHER WHAT THEY ARE VOTING ON IS AS SOME CRITICS SUGGEST A LEGAL SHAM SO THE ONCE GREAT HOPES OF A UNITED STATES OF EUROPE HAVE COME TO THIS THE TREATY THAT WAS TO FINALLY BRING EUROPE POLITICAL AND MONETARY UNITY NOW HAS SUCH WEAK PUBLIC SUPPORT THAT IF IT COMES INTO BEING AT ALL IT WILL BE THROUGH LEGALISTIC LEGERDEMAIN DENMARK ISN'T THE ONLY PROBLEM BRITAIN'S JOHN MAJOR FACED WITH A TORY REBELLION IS THREATENING TO EMPLOY AN UNDEMOCRATICSOUNDING ANCIENT DOCTRINE CALLED ROYAL PREROGATIVE TO PUSH MAASTRICHT THROUGH PARLIAMENT IN GERMANY A LEGAL ACTION ATTEMPTS TO FORCE A REFERENDUM ON MAASTRICHT ON CONSTITUTIONAL GROUNDS IF THE TREATY SHOULD GO TO THE GERMAN VOTERS OPINION POLLS SUGGEST IT WOULD BE DEFEATED EVEN THOUGH MAASTRICHT WOULD OVERRIDE NATIONAL LAWS IT HAS BEEN PUT TO A POPULAR VOTE IN ONLY THREE EC COUNTRIES WITH THE OTHER NINE DECIDING THAT PARLIAMENTARY APPROVAL WAS SUFFICIENT IT WON HANDILY WITH IRISH VOTERS WHO ARE ON THE RECEIVING END OF EC SUBSIDIES IT BARELY PASSED IN FRANCE WHERE VOTERS WERE WORRIED ABOUT LOSS OF NATIONAL SOVEREIGNTY AND IT FAILED IN DENMARK OVER SIMILAR CONCERNS BRITISH EUROSKEPTICS INCLUDING MARGARET THATCHER ARE DEMANDING THAT JOHN MAJOR HOLD A REFERENDUM THERE ASSUMING WITH SOME CERTITUDE THAT MAASTRICHT WOULD FAIL MR MAJOR ARGUES THAT BRITAIN IS A LAND OF REPRESENTATIVE GOVERNMENT NOT DIRECT DEMOCRACY BUT HIS CRITICS SUSPECT A CERTAIN ELITISM A BELIEF THAT BRITS ARE TOO MIRED IN BENIGHTED NATIONALISM TO KNOW WHAT'S GOOD FOR THEM INDEED THEY ARGUE THAT ELITISM PARTICULARLY AMONG THE EC MANDARINS IN BRUSSELS HAS PERVADED THE ENTIRE MAASTRICHT PROCESS AND IS TO BLAME FOR MUCH OF THE PUBLIC RESENTMENT BUT ASIDE FROM THE QUESTION OF WHETHER THE LEADERS OF REPUBLICS SHOULD SHRINK FROM DIRECT DEMOCRACY A VERY INTERESTING QUESTION IN ITSELF THERE IS THE ISSUE OF WHETHER MAASTRICHT IS A GOOD OR BAD TREATY THE ANSWER IS THAT IT IS BOTH GOOD AND BAD AND THAT THE HEADS OF STATE SHOULD HAVE BEEN WISE ENOUGH TO SEPARATE THE ONE FROM THE OTHER MOST OF ALL THEY SHOULD HAVE KEPT IT MUCH SIMPLER THE FUNDAMENTAL CONCEPT OF A UNITED EUROPE IS ESSENTIALLY GOOD IT GREW OUT OF THE NEVER AGAIN ATTITUDE THAT PERVADED EUROPE AFTER WORLD WAR II ONE OF THE MOST ARDENT PROMOTERS OF A UNITED STATES OF EUROPE WAS DWIGHT D EISENHOWER ALONG WITH EUROPE'S LEADERS THE ALLIED WARTIME COMMANDER WORKED HARD FIRST AS A GENERAL AND THEN AS THE US PRESIDENT TO BUILD THE FOUNDATIONS OF THE WESTERN ALLIANCES THAT SERVED EUROPE SO WELL DURING THE COLD WAR EVEN IN THE EARLY DAYS EVENTUAL POLITICAL UNITY WAS PART OF THE VISION MAASTRICHT WAS INTENDED TO CULMINATE NEARLY A HALF CENTURY OF POLITICAL EVOLUTION IN EUROPE AND IT IS THUS NO WONDER THAT ITS ARCHITECTS ARE TRYING SO DESPERATELY TO WIN ITS APPROVAL EVEN IF BY DOUBTFUL MEANS ONE OF MAASTRICHT'S GOALS A SINGLE CURRENCY CERTAINLY IS VERY MUCH TO BE DESIRED IF ONE ASSUMES THAT THE FUNDAMENTAL GOAL OF A EUROPEAN SYSTEM OF CENTRAL BANKS WOULD BE AS THE TREATY CLEARLY STATES TO MAINTAIN PRICE STABILITY THE BEAUTIES OF A SINGLE CURRENCY ARE OBVIOUS TO ANYONE WHO TRAVELS AROUND EUROPE AND IS FORCED AT SOME COST TO CHANGE MONEY AT EVERY BORDER CROSSING THE PROBLEMS ARE LESS OBVIOUS BUT VERY REAL IN THAT THE LESS EFFICIENT COUNTRIES OF THE COMMUNITY WOULD FACE SEVERE COMPETITIVE PRESSURES UNDER A SINGLE CURRENCY WHEN ENGLAND OPTED OUT OF THE EXCHANGE RATE MECHANISM LAST YEAR IT FELT THAT IT WAS ESCAPING FROM A STRAITJACKET THE ESSENTIAL QUESTION BRITAIN FACES IS WHETHER IT WANTS TO SUFFER THE PRESSURES OF A SINGLE CURRENCY IN RETURN FOR THE BENEFITS OR ESCAPE THEM THE PROBLEMS OF A COMMON FOREIGN POLICY WERE OF COURSE EXPOSED BY THE EC'S DISARRAY OVER YUGOSLAVIA IT IS NOT ENTIRELY CLEAR WHETHER EVEN A MORE UNITED EUROPE WOULD HAVE HAD THE DESIRE OR MEANS TO HEAD OFF THE BOSNIAN TRAGEDY BUT CERTAINLY BOSNIA HAS DONE NOTHING TO CREATE CONFIDENCE IN MAASTRICHT COMMON CITIZENSHIP AS A GOAL IS DESIRABLE AS WELL BUT THE DRAFTERS OF MAASTRICHT MADE THE MISTAKE OF WRITING IN TOO MUCH AS THEY DID THROUGHOUT THE TREATY IT WAS A MISTAKE TO DICTATE IN SUCH A BASIC DOCUMENT THAT CITIZENS FROM ANYWHERE IN THE COMMUNITY HAD THE RIGHT TO VOTE IN LOCAL ELECTIONS AND HOLD LOCAL OFFICES THIS OVERRODE THE PRINCIPLE OF LOCAL RULE OR AS THE EC CALLS IT SUBSIDIARITY EUROPE'S CURRENT INTENSE SENSITIVITY TO IMMIGRATION ISSUES AGGRAVATED PUBLIC CONCERNS TOO MUCH LAW ALSO WAS THE PROBLEM OF THE SOCIAL CHAPTER WHICH HAS CREATED SO MUCH TROUBLE IN THE UNITED KINGDOM IT GRANTS A LAUNDRY LIST OF WORKER RIGHTS SO MANY THAT JOHN MAJOR DEMANDED AND RECEIVED AN OPTOUT FOR THE UNITED KINGDOM NO BASIC LAW AS THE TREATY IS SHOULD EVER BE SO DETAILED THE TREATY EVEN HAS A PROTOCOL ON BEHALF OF ANIMAL RIGHTS SOMETHING THAT WOULD LOOK PREPOSTEROUS IN SAY THE US CONSTITUTION GIVEN THE DAMAGE TO MAASTRICHT'S CREDIBILITY FROM THE OPTOUTS AND OBVIOUS LACK OF BROAD PUBLIC SUPPORT THERE ARE SERIOUS QUESTIONS ABOUT WHETHER EUROPE WOULD BE BETTER OFF WITH MAASTRICHT ALIVE OR DEAD IF IT LIVES IT MAY SUFFER FURTHER CREDIBILITY DAMAGE AS NATIONAL PARLIAMENTS SIMPLY IGNORE ITS REQUIREMENTS IT CERTAINLY WILL NOT PRODUCE A SINGLE CURRENCY OR A COMMON FOREIGN POLICY ANYTIME SOON REJECTION WOULD NOT DESTROY THE IMPORTANT PROGRESS THE EUROPEAN COMMUNITY HAS MADE TOWARD A SINGLE MARKET IF THE DANES VOTE NO AGAIN IT MIGHT SAVE EUROPE FROM A LOT OF FURTHER HASSLE THEN MAYBE SOMEONE WILL SIT DOWN AND WRITE A MORE SIMPLE AND SENSIBLE DOCUMENT WITH SIMILAR GOALS 9305170027 930517 WALL STREET CAN'T SAVE NEW YORK BY CHARLES R MORRIS AS THE BUDGET FOLLIES OF THE PAST SEVERAL WEEKS HAVE MADE CLEAR NEW YORK CITY IS FACING A LONGTERM BUILTIN DEFICIT WELL IN EXCESS OF 2 BILLION MAYOR DAVID DINKINS HAS STRUGGLED MANFULLY TO WISH IT AWAY WITH OPTIMISTIC FORECASTS ABOUT SPENDING DISCIPLINE STATE AND FEDERAL AID AND LOCAL ECONOMIC RECOVERY HIS HOPES ARE DOOMED TO DISAPPOINTMENT THE LAST MAJOR FISCAL CRISIS OF COURSE WAS ENDED BY THE ECONOMIC BOOM OF THE 1980S WITH THE US ECONOMY NOW APPARENTLY ON THE ROAD TO RECOVERY CAN NEW YORK HOPE SIMPLY TO GROW OUT OF ITS TROUBLES REGRETTABLY NO AT LEAST NOT AS IT HAS IN THE PAST RELYING ON THE FINANCIALSERVICES INDUSTRY TO DRIVE THE PRIVATESECTOR ECONOMY PROP UP THE REALESTATE TAX BASE AND SAVE THE CITY'S FISCAL HEALTH WHEN THE MARKETS BOOMED IN THE 1980S BOTH THE STATE AND THE CITY SUDDENLY LOOKED FINANCIALLY HEALTHY PREDICTABLY GOVERNMENT SPENDING INCREASED CULMINATING IN THE PAINFUL SQUEEZE OF THE PAST FEW YEARS AS THE MARKETS AGAIN TURNED DOWN BUT IT IS VERY HARD TO BE OPTIMISTIC ABOUT THE PROSPECTS FOR ANOTHER FINANCIALSERVICES BOOM IN NEW YORK CITY SUPERFICIALLY WALL STREET'S FORTUNES TURNED DECISIVELY UPWARD IN 1992 WITH ALLTIME HIGH REVENUES AND PROFITS SECURITIES INDUSTRY EMPLOYMENT WHICH HAD FALLEN ABOUT 20 SINCE THE 1987 CRASH HAS BEGUN CREEPING UP ONCE AGAIN BUT MUCH OF WALL STREET'S RECENT UPTURN IN REVENUES IS LIKELY TO BE SHORTLIVED CURRENT REVENUES DEPEND ON ANOMALOUS INTEREST RATES THAT WILL INEVITABLY LEVEL OFF MORE IMPORTANT THE FINANCIALSERVICES INDUSTRY IS UNDERGOING A MASSIVE RESTRUCTURING THAT WILL CHANGE FOREVER ITS ROLE IN NEW YORK'S ECONOMY AND THAT OF ANY CITY WITH A STRONG FINANCIAL SECTOR ALMOST HALF OF THE SECURITIES INDUSTRY'S REVENUES IN 1992 CAME FROM BOND TRADING AND INTEREST PROFITS DURING 1992 THE FEDERAL RESERVE DROVE SHORTTERM INTEREST RATES TO THEIR LOWEST LEVELS IN YEARS WHILE MEDIUM AND LONGERTERM RATES REMAINED RELATIVELY HIGH WALL STREET CARRIES HUGE BOND INVENTORIES THAT IT FINANCES WITH SHORTTERM PAPER THAT IS IT HAS BEEN ABLE TO BORROW AT 3 OR EVEN LESS AND INVEST THE MONEY IN MEDIUMTERM BONDS THAT PAY 6 OR MORE AS SPREADS BETWEEN SHORT AND LONGTERM INTEREST RATES HAVE WIDENED TO HISTORIC LEVELS THE PROFITS HAVE ROLLED IN BUT NO ONE EXPECTS THIS SITUATION TO LAST THE SECOND MAJOR REVENUE SOURCE IN 1992 WAS RECORDBREAKING UNDERWRITING FEES AGAIN THIS SEEMS MOSTLY A ONETIME EVENT IN THE 1980S WALL STREET COLLECTED HUGE FEES BY SELLING JUNK BONDS AND OTHER INSTRUMENTS THAT WERE USED TO BUY UP STOCK NOW IT IS COLLECTING HUGE FEES FOR SELLING STOCK TO PAY OFF THE JUNK BONDS THAT MAY CONTINUE FOR ANOTHER YEAR OR SO BUT THEN UNDERWRITING ACTIVITY WILL DIP BACK DOWN TO MORE NORMAL LEVELS MEANWHILE THE SECURITIES INDUSTRY IS FACING A RESTRUCTURING OF THE SORT THAT AFFECTED ALMOST ALL OTHER AMERICAN INDUSTRIES DURING THE 1980S THE RESTRUCTURING WHICH INVOLVES A MOVE TOWARD DISCOUNT BROKERAGES AND COMPUTERIZED TRADING IS PROCEEDING AT A RAPID PACE IT IS FAR EASIER TO AUTOMATE THE PROCESSING OF INFORMATION AFTER ALL THAN THE MANUFACTURING OF CARS THE NATURE OF THE BUSINESS HAS CHANGED DRAMATICALLY OVER THE PAST DECADE IN 1980 MOST STOCK TRADING WAS DONE BY INDIVIDUALS WHO PAID VERY HIGH BROKERAGE FEES FOR THE PRIVILEGE TODAY INDIVIDUALS ACCOUNT FOR AT MOST 30 OF TRADING INDIVIDUALS' HOLDINGS OF STOCKS AND BONDS ARE GROWING STRONGLY BUT THEY ARE INVESTING THROUGH MUTUAL FUNDS AND PENSION FUNDS WHICH PAY MUCH LOWER FEES FOR THEIR TRADING STOCKBROKERS HELD ONTO THEIR CUSTOMERS BY SWITCHING FROM SELLING STOCKS TO SELLING MUTUAL FUNDS WHEN INTEREST RATES ON BONDS WERE HIGH THIS WAS WILDLY PROFITABLE IN THE EARLY 1980S CUSTOMERS SWITCHING OUT OF A PASSBOOK SAVINGS ACCOUNT WERE DELIGHTED TO GET 12 ON THEIR SAVINGS AND HARDLY CARED THAT THE FUND MANAGERS WERE KEEPING ANOTHER 2 OR SO EACH YEAR FOR THEMSELVES BUT WITH SHORTTERM RATES DOWN TO THE 3 LEVEL MANY BROKERAGES AND FUND COMPANIES ARE NOW PROVIDING THEIR MONEYMARKET FUNDS FOR FREE THE RESTRUCTURING OF THE MUTUALFUND INDUSTRY IS BEING LED BY DIRECT MARKETERS LIKE FIDELITY AND VANGUARD WHICH OFFER THE MOST MODERN TECHNOLOGY MUCH LOWER LOADS AND COSTS AND EXCELLENT ROUNDTHECLOCK SERVICE BY CAPABLE REPRESENTATIVES WHO ARE PAID MUCH LESS THAN THE WALL STREET STANDARD A FAIRLY TYPICAL STATE MUNICIPAL BOND FUND CURRENTLY SOLD THROUGH BROKERS CARRIES A FRONTEND LOAD OF 475 AND ANNUAL SERVICE AND SALES CHARGES OF 125 A VIRTUALLY IDENTICAL PORTFOLIO OFFERED BY VANGUARD THE LOWCOST LEADER HAS NO UPFRONT CHARGE AND ANNUAL FEES OF ONLY ABOUT 025 RETAIL CUSTOMERS CONFUSED BY COMPLICATED MUTUALFUND FEE SCHEDULES ARE STILL PAYING HIGH LOADS FOR BROKERMEDIATED FUNDS BUT THE TRENDS ARE UNMISTAKABLE FIDELITY AND VANGUARD BY THEMSELVES HAVE ACCOUNTED FOR ABOUT ONETHIRD OF ALL FUNDS GROWTH OVER THE PAST FIVE YEARS AS CUSTOMERS SLOWLY CATCH ON THERE IS EXTREME PRESSURE ON FEES THROUGHOUT THE INDUSTRY TO STAY COMPETITIVE BROKERS WILL HAVE TO CUT THEIR COSTS AND THEREFORE THEIR PROFITS AND EMPLOYMENT THE RESTRUCTURING REVERBERATES THROUGHOUT THE INDUSTRY WHEN MOST STOCKS WERE TRADED BY INDIVIDUALS IT WAS EASY FOR PROFESSIONAL MONEY MANAGERS TO BEAT THE MARKET NOW THAT PROFESSIONALS DO MOST OF THE TRADING THEY ARE THE MARKET SO IT IS HARDLY SURPRISING THAT OVER THE PAST DECADE MOST PROFESSIONALS FAILED TO BEAT THE STANDARD MARKET INDEXES MOST OF THE TIME BIG INVESTORS HAVE INCREASINGLY RESORTED TO INDEXED FUNDS COMPUTERMANAGED POOLS DESIGNED MERELY TO MATCH THE LEADING MARKET INDEXES AT A FRACTION OF TYPICAL FUNDSMANAGEMENT COSTS CALPERS THE NATION'S BIGGEST PENSION FUND HAS ABOUT 75 OF ITS EQUITY HOLDINGS INDEXED INDEXED FUNDS ARE ALSO BECOMING INCREASINGLY POPULAR IN THE RETAIL MARKET AS MIGHT BE EXPECTED FUNDSMANAGEMENT FEES FOR INSTITUTIONAL INVESTORS HAVE BEEN DROPPING STEADILY SOME RESTRUCTURING TRENDS WILL HAVE A PARTICULAR EFFECT ON NEW YORK CITY THE SYSTEM OF TRADING SHARES ON THE NEW YORK STOCK EXCHANGE IS ORGANIZED AROUND SPECIALIST FIRMS PHYSICALLY LOCATED ON THE FLOOR OF THE EXCHANGE THE NASDAQ OVERTHECOUNTER MARKET ON THE OTHER HAND HAS NO EXCHANGE FLOOR BID AND ASK PRICES APPEAR ON TRADERS' COMPUTER SCREENS AND TRANSACTIONS ARE CONDUCTED ELECTRONICALLY NASDAQ WAS CREATED FOR SMALL THINLY TRADED STOCKS THAT DID NOT QUALIFY FOR MAJOR MARKET LISTINGS BUT A LOT OF ONCESMALL COMPANIES ARE NOW VERY LARGE AND STILL TRADE THROUGH NASDAQ MICROSOFT AND INTEL FOR INSTANCE EVEN BIG BOARDLISTED STOCKS ARE INCREASINGLY BOUGHT AND SOLD OFFEXCHANGE AS BIG INSTITUTIONAL PLAYERS ESSENTIALLY TRADE DIRECTLY WITH EACH OTHER A SIMILAR TREND IS THE INCREASING POPULARITY OF BOOKENTRY TRADING THE TREASURY MARKET HAS LONG SINCE DISPENSED WITH PHYSICAL CERTIFICATES FOR NOTES AND BONDS RELYING SIMPLY ON COMPUTER REGISTER ENTRIES TO ACCOMMODATE INSTITUTIONAL INVESTORS MORE CORPORATIONS ARE GIVING THEIR CUSTOMERS THE CHOICE OF WHETHER OR NOT TO HOLD STOCKS IN THE FORM OF PHYSICAL INSTRUMENTS THE MOVEMENT RECORDING AND CUSTODY OF PHYSICAL CERTIFICATES IS A BIG EMPLOYMENTINTENSIVE BUSINESS IN NEW YORK THAT WILL INEVITABLY GO THE WAY OF THE HORSEDRAWN MILK CART NEW YORK CITY HAS HELD UP WELL AS A WORLD FINANCIAL MARKET THE SHARE OF GLOBAL CAPITAL THAT FLOWS THROUGH NEW YORK IS STEADY EVEN RISING BUT BECAUSE OF THE INCREASED AUTOMATION OF THE INDUSTRY THIS DOES NOT PORTEND CONTINUED HIGH LEVELS OF EMPLOYMENT AND OFFICESPACE CONSUMPTION BY THE CITY'S FINANCIALSERVICES SECTOR THE DAYS WHEN FINANCIAL SERVICES ACTED AS A WELLPAID AFFIRMATIVE ACTION PROGRAM FOR PRESENTABLE MODERATELY LITERATE IVY LEAGUE GRADUATES ARE ENDING AS SADLY ARE THE DAYS WHEN THE STOCK MARKET PROVIDED READY EMPLOYMENT FOR LEGIONS OF SEMISKILLED CLERKS AND RUNNERS THE INDUSTRY THAT IS EMERGING WILL BE COMPLETELY COMPUTERIZED ALMOST ENTIRELY WITHOUT PAPER TRANSACTION RECORDS MUCH LESS LABOR AND SPACEINTENSIVE AND WITH MUCH TIGHTER COST AND PROFIT CONSTRAINTS A LONGTERM RECOVERY IN FINANCIAL SERVICES IN SHORT NO MORE IMPLIES A HEALTHY NEW YORK CITY THAN THE RECOVERY OF THE AMERICAN AUTOMOBILE INDUSTRY MEANS A HEALTHY DETROIT THE FINANCIALSERVICES INDUSTRY WHICH HAS SUSTAINED THE CITY THROUGH MULTIPLE CYCLES OF CONTRACTION AND RECOVERY IS UNLIKELY TO DO SO AGAIN MR MORRIS IS THE COAUTHOR OF COMPUTER WARS HOW THE WEST CAN WIN IN A POSTIBM WORLD TIMES BOOKS 1993 THIS ARTICLE IS ADAPTED FROM THE SPRING ISSUE OF THE MANHATTAN INSTITUTE'S CITY JOURNAL 9305170026 930517 EURO DISNEY REVENUE FALLS 42 PARIS EURO DISNEY SCA SAID FIRSTHALF GROUP CONSOLIDATED REVENUE FELL 42 TO 179 BILLION FRANCS 3284 MILLION FROM 307 BILLION FRANCS A YEAR EARLIER EURO DISNEY'S YEAR ENDS SEPT 30 THE COMPANY MADE THE ANNOUNCEMENT FRIDAY IN A REQUIRED LEGAL FILING IN THE BULLETIN DES ANNONCES LEGALES OBLIGATOIRES 9305170025 930517 BENETTON TO EXPAND IN MEXICO MEXICO CITY ITALIAN CLOTHING MANUFACTURER AND RETAILER BENETTON SA PLANS TO INCREASE ITS RETAIL FRANCHISES IN MEXICO TO 150 BY 1994 ACCORDING TO A COMPANY SPOKESMAN THAT WOULD ADD ABOUT 50 NEW BENETTON OUTLETS THIS YEAR THE SPOKESMAN SAID HE COULDN'T PROVIDE THE EXACT NUMBER OF BENETTON OUTLETS CURRENTLY OPERATING IN THE COUNTRY BENETTON HAS RECENTLY OPENED OUTLETS IN MEXICO CUBA ASIA AND SOUTH AFRICA 9305170023 930517 POLITICS & POLICY PROPOSED CAPITALGAINS TAX BREAK FOR INVESTORS IN SMALL FIRMS HAS CRITICS CALCULATING COSTS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE NEXT FEW WEEKS SEN DALE BUMPERS WILL TRY TO SWEETEN PRESIDENT CLINTON'S PROPOSAL TO GIVE A CAPITALGAINS TAX BREAK TO INVESTORS IN SMALL COMPANIES WITH BIPARTISAN BACKING THE ARKANSAS DEMOCRAT HAS A GOOD CHANCE OF SUCCESS THE PROSPECT MAKES TAX EXPERTS SHUDDER EVEN SOME IN THE CLINTON ADMINISTRATION AT ISSUE IS A PROPOSAL TO CUT THE CAPITALGAINS TAX RATE IN HALF FOR INVESTORS WHO BUY SHARES DIRECTLY FROM ELIGIBLE SMALL COMPANIES AND HOLD THE STOCK FOR FIVE YEARS TAX BREAKS FOR SMALL BUSINESSES ARE ALWAYS POPULAR BECAUSE OF THE WAY THE GOVERNMENT KEEPS ITS BOOKS THIS TAX BREAK HAS AN ADDED ATTRACTION IT LOOKS LIKE A FREEBIE BUT IT'S NOT AND THAT IS WHY THE TREASURY AMONG OTHER CORNERS OF THE ADMINISTRATION IS UNEASY ABOUT THE LIKELIHOOD THAT SEN BUMPERS WILL GET HIS WAY DURING HIS CAMPAIGN MR CLINTON EMBRACED SEN BUMPERS'S INITIATIVE IN ITS ENTIRETY THESE ARE THE PEOPLE THAT ARE CREATING THE NEW JOBS IN AMERICA AND WE OUGHT TO GIVE THEM THE INCENTIVES TO DO IT MR CLINTON TOLD A SMALLBUSINESS GROUP IN SEPTEMBER ONCE IN OFFICE THE PRESIDENT BOWED TO WARNINGS FROM THE TREASURY THAT THE BUMPERS PLAN IN ITS UNDILUTED FORM COULD CREATE A WHOLE NEW BREED OF TAX SHELTERS AND WIDEN FUTURE DEFICITS SO THE PRESIDENT PROPOSED AMONG OTHER THINGS TO LIMIT THE TAX BREAK TO INVESTMENTS IN COMPANIES WITH 25 MILLION IN STOCKHOLDERS' EQUITY AND LONGTERM DEBT SEN BUMPERS WANTS A 100 MILLION CUTOFF AT HIS PRODDING THE TREASURY HAS BUMPED THE THRESHOLD TO 50 MILLION BUT SEN BUMPERS ISN'T SATISFIED THE PRESIDENT WENT UP ONE SIDE OF THE COUNTRY AND DOWN THE OTHER TALKING ABOUT THE BUMPERS BILL THE SENATOR SAYS I WAS UP AT THE WHITE HOUSE A MONTH AGO AND HE TOLD ME HE HAD TOLD HIS PEOPLE TO MAKE SURE I WAS SATISFIED SEN BUMPERS'S ALLY ON THE HOUSE WAYS AND MEANS COMMITTEE REP BOB MATSUI OF CALIFORNIA ISN'T HAPPY EITHER BUT HE FAILED TO WIDEN THE TAX BREAK IN THE COMMITTEE BACKED BY VENTURE CAPITALISTS AND THE BIOTECHNOLOGY INDUSTRY WHICH SAYS THE THRESHOLD IS TOO LOW TO AID THAT RESEARCHINTENSIVE INDUSTRY THE TWO LAWMAKERS ARE PRESSING THE FIGHT TO MAKE BIGGER COMPANIES ELIGIBLE TREASURY AND CONGRESSIONAL ESTIMATORS SAY THE CLINTON PROPOSAL WOULD COST TAXPAYERS ONLY 200 MILLION A YEAR WHICH HARDLY COUNTS IN WASHINGTON THESE DAYS GOING ALL THE WAY TO MR BUMPERS'S VERSION WOULDN'T COST MUCH MORE BUT THE PRICE TAG IS DECEPTIVE THE REVENUE ESTIMATE DOESN'T ACCURATELY REFLECT ITS EFFECT SAYS RONALD PEARLMAN A FORMER CONGRESSIONAL AND TREASURY TAX OFFICIAL WHEN PRICING TAX BILLS NEITHER CONGRESS NOR THE TREASURY LOOKS BEYOND THE NEXT FIVE YEARS AND BECAUSE THIS PROPOSAL REQUIRES INVESTORS TO HOLD SHARES FOR FIVE YEARS THE COSTS TO THE TREASURY WON'T SHOW UP UNTIL LATER WHEN THE SHARES ARE SOLD IT'S OKAY AS LONG AS CLINTON DOESN'T WANT A SECOND TERM GROUSES ROBERT MCINTYRE OF CITIZENS FOR TAX JUSTICE CONSIDER WHAT MIGHT HAVE HAPPENED HAD THE BUMPERS TAX BREAK BEEN ENACTED A HALF DOZEN YEARS AGO BACK IN 1985 A LITTLE COMPANY CALLED NOVELL INC WHICH MAKES HARDWARE AND SOFTWARE USED TO LINK PERSONAL COMPUTERS RAISED 58 MILLION IN AN INITIAL PUBLIC OFFERING OF ITS SHARES A YEAR LATER IT RAISED AN ADDITIONAL 183 MILLION SINCE 1985 NOVELL SHARES HAVE SHOT UP BY MORE THAN 10000 IF THE ORIGINAL INVESTORS HAD HELD ON TO ALL THEIR SHARES THAT 24 MILLION INVESTMENT WOULD BE WORTH 15 BILLION THE POTENTIAL VALUE OF THE TAX BREAK TO THOSE INVESTORS THE DIFFERENCE BETWEEN A 28 AND 14 TAX BITE ON CAPITAL GAINS WOULD EXCEED 200 MILLION FOR JUST ONE COMPANY AND THAT DOESN'T EVEN CONSIDER THE POTENTIAL BENEFIT TO THE COMPANY'S FOUNDERS NOVELL IS EXCEPTIONAL BUT NOT UNIQUE BLOCKBUSTER ENTERTAINMENT CORP THE FORT LAUDERDALE FLA VIDEO RENTAL CHAIN RAISED 32 MILLION IN 1986 AND 1987 BY SELLING STOCK IN THE COMPANY WITH BLOCKBUSTER SHARES NOW TRADING AT 23 TIMES WHAT THEY DID WHEN FIRST OFFERED THAT ORIGINAL INVESTMENT WOULD BE WORTH 641 MILLION THE POTENTIAL VALUE OF THE TAX BREAK TO THOSE EARLY INVESTORS WHOSE CONTRIBUTION TO THE COMPETITIVENESS OF THE AMERICAN ECONOMY WAS THE FORESIGHT THAT NEARLY EVERYONE WOULD BUY AN IMPORTED VCR IS 85 MILLION TO AVOID SUCH WINDFALLS MR CLINTON HAS ALTERED THE BUMPERS PROPOSAL TO LIMIT GAINS IN ANY ONE COMPANY THAT ARE ELIGIBLE FOR THE TAX BREAK TO 10 TIMES THE ORIGINAL INVESTMENT OR 10 MILLION WHICHEVER IS GREATER SEN BUMPERS ISN'T PUSHING SEVERAL ELEMENTS OF HIS ORIGINAL PROPOSAL INCLUDING ONE TO WAIVE THE CAPITALGAINS TAX ALTOGETHER FOR INVESTORS IN VERY SMALL COMPANIES WHO HOLD THEIR SHARES FOR 10 YEARS BUT HE SAYS HE IS DETERMINED TO OFFER THE TAX BREAK BOTH TO CORPORATE AND INDIVIDUAL INVESTORS MR CLINTON WOULD LIMIT IT TO INDIVIDUALS BECAUSE OF WORRIES THAT CORPORATIONS MIGHT FORM NEW SUBSIDIARIES JUST TO TAKE ADVANTAGE OF THE TAX BREAK SEN BUMPERS SAYS ANTIABUSE RULES WOULD PREVENT THAT THEY HAVE DELUSIONS OF WHO ALL IS GOING TO RAPE MY SYSTEM SAYS SEN BUMPERS IF WE SEE THAT IT HAS CREATED SOME KIND OF LOOPHOLE OR BIG BONANZA WE CAN ALWAYS TIGHTEN IT UP LOST IN THE TUGOFWAR OVER THE DIMENSIONS OF THE SMALLBUSINESS TAX BREAK IS A MORE FUNDAMENTAL ISSUE IS IT A GOOD IDEA SOME DEMOCRATS AND ECONOMISTS ARE DRAWN TO IT AS AN ALTERNATIVE TO A MORE COSTLY AND CONTROVERSIAL ACROSSTHEBOARD CUT IN THE CAPITALGAINS TAX RATE WHICH WOULD REWARD INVESTORS PAST AND FUTURE IN ALL SORT OF ASSETS THE PROGRESSIVE POLICY INSTITUTE'S ROBERT SHAPIRO AN ECONOMIC ADVISER TO THE CLINTON CAMPAIGN IS A STRONG PROPONENT ARGUING THAT FINANCIAL MARKETS DON'T WORK RIGHT WHEN IT COMES TO FUNNELING CAPITAL TO RISKY SMALL VENTURES BUT MR CLINTON'S PROPOSAL TO RAISE THE TOP TAX RATE ON ORDINARY INCOME TO 40 AND OFFER A 14 RATE FOR FAVORED INVESTMENTS IN SMALL BUSINESSES WILL UNDOUBTEDLY SPAWN A NEW BREED OF TAX SHELTERS WARNS SEN BILL BRADLEY D NJ IF THIS MINIATURE CAPITALGAINS TAX CUT PASSES HE ADDS PRESSURE TO WIDEN IT IN THE FUTURE IS CERTAIN TO BUILD MOREOVER MANY TAX LAWYERS AND ECONOMISTS ARE SKEPTICAL THAT SLASHING CAPITALGAINS TAX RATES WILL PRODUCE A FLOOD OF MONEY TO COMPANIES THAT COULD TURN INTO THE NEXT APPLE COMPUTER INC AFTER ALL MORE THAN 60 OF ALL THE VENTURE CAPITAL INVESTED IN THE PAST TWO YEARS CAME FROM PENSION FUNDS ENDOWMENTS AND OTHER INSTITUTIONAL INVESTORS WHO DON'T PAY CAPITALGAINS TAXES OTHERS DOUBT THE WISDOM OF USING THE TAX CODE TO STEER PRIVATE INVESTMENT WHEN YOU START TARGETING LIKE THIS YOU DON'T KNOW WHETHER IT IS GOING TO INCREASE INVESTMENT OVERALL SAYS MICHAEL GRAETZ A YALE LAW PROFESSOR AND A TAX OFFICIAL IN THE BUSH TREASURY YOU OUGHT TO HAVE REASON TO BELIEVE THAT THE ECONOMY IS BETTER OFF AND THERE'S NO REASON TO BELIEVE THAT INVESTMENTS IN COMPANIES WITH LESS THAN 100 MILLION OR 50 MILLION IN CAPITALIZATION WILL DO THAT INVESTMENTS IN GE OR FORD OR CHRYSLER MIGHT BE BETTER FOR THAT DIFFERENCES BETWEEN PROPOSALS TO CUT THE CAPITALGAINS TAX BITE IN HALF ON SHARES PURCHASED DIRECTLY FROM ELIGIBLE COMPANIES IF HELD FOR FIVE YEARS 9305170022 930517 CREDIT MARKETS BOND JITTERS GROW AS SIGNS OF INFLATION MOUNT BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE LAST TIME BOND MARKET ANALYSTS CAME FACE TO FACE WITH THE INFLATION BOGEYMAN MANY SHUDDERED BUT FEW BLINKED THIS TIME AROUND MANY MORE ARE ON THE VERGE OF SELLING MONEY MANAGERS ARE NOT YET BEARISH BUT THEY'RE MORE CAUTIOUS SAYS DAVID ADER A TREASURY MARKET ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES WHAT SCARES THESE PEOPLE MOST IS THAT WE'VE HAD FOUR MONTHS OF INFLATION DATA FOR 1993 AND THREE OF THEM HAVE BEEN SURPRISINGLY STRONG THE PRICE NEWS CAME AT A DELICATE TIME IT CAME IN A WEEK WHEN THE TREASURY WAS DELUGING INVESTORS WITH 35 BILLION OF SECURITIES IN ITS QUARTERLY REFINANCING AUCTIONS OF THREEYEAR NOTES 10YEAR NOTES AND 30YEAR BONDS NOT TO MENTION 2329 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION AND 1504 BILLION OF 129DAY CASH MANAGEMENT BILLS SUCH A TIDAL WAVE OF SUPPLY OFTEN ERODES PRICES OF EXISTING TREASURY NOTES AND BONDS MR ADER BELIEVES THE YIELD ON THE 30YEAR TREASURY BOND COULD RISE A BIT MORE PERHAPS TO AS HIGH AS 7125 OVER THE NEXT COUPLE OF MONTHS BUT HE STILL HOLDS OUT HOPE FOR LOWER YIELDS BY THE END OF THE YEAR I THINK WE WILL HAVE SEEN 65 AND EDGED BACK FROM THERE THIS ISN'T THE FIRST WAVE OF INFLATION WORRIES TO DEPRESS BOND PRICES LATELY WHEN REPORTS RELEASED IN MARCH SHOWED BIGGERTHANEXPECTED PRICE INCREASES FOR THE PREVIOUS MONTH THE BOND MARKET TOOK A DIVE THOUGH IT LATER RECOVERED ON MARCH 12 FOR EXAMPLE THE 30YEAR TREASURY BOND PLUNGED MORE THAN A POINT IN REACTION TO A SHARPERTHANEXPECTED JUMP IN FEBRUARY'S PRODUCER PRICE INDEX BUT THIS TIME TRADERS AND ANALYSTS ARE WARY OF SHRUGGING OFF INFLATIONARY PRESSURES AS A PRODUCT OF NONRECURRING FACTORS SUCH AS THE WEATHER SENTIMENT IN THE BOND MARKET IS MORE NEGATIVE NOW THAN AT ANY POINT SO FAR THIS YEAR PEOPLE ARE GETTING TIRED OF ONETIME SPECIAL FACTORS' SAYS MEAD BRIGGS HEAD OF GOVERNMENT TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC THE ECONOMY STILL LOOKS LIKE IT IS EXPERIENCING VERY VERY MODEST GROWTH BUT THE INFLATION STUFF IS BECOMING A SERIOUS PROBLEM IN MARCH SOME ANALYSTS POINTED TO SLUGGISH GOLD PRICES AS EVIDENCE THAT THE FEBRUARY INFLATION SURGE WAS AN ABERRATION BUT SINCE REACHING A SEVENYEARLOW IN MIDMARCH GOLD PRICES HAVE RISEN MORE THAN 12 TO 36830 AN OUNCE ON FRIDAY THERE ARE ALSO WORRIES AMONG TRADERS AND INVESTORS THAT PRESIDENT CLINTON'S PROPOSED TAX PACKAGES AND THE ANXIOUSLY AWAITED HEALTHREFORM PROGRAM COULD HURT THE BOND MARKET PART OF THE DRAG IN THE ECONOMY COULD BE THE WAITING TO SEE WHAT THE TAX PICTURE WILL BE LIKE AND WHAT CORPORATIONS WILL BE PAYING FOR HEALTH CARE SAYS MR ADER ONCE THESE ARE OUT OF THE WAY HE SAYS PERHAPS CORPORATIONS COULD MAKE SOME DECISIONS ABOUT HIRING WHICH COULD BOOST THE ECONOMY FUEL INFLATION AND DEPRESS BOND PRICES ONE OF THE BOND TRADERS HERE TOLD ME THAT IF YOU GET SPECIAL FACTORS EVERY MONTH TO EXPLAIN AWAY HIGHER PRICES YOU'VE GOT RISING INFLATION SAYS STEVEN WOOD DIRECTOR OF FINANCIAL MARKET RESEARCH AT BANK OF AMERICA IN SAN FRANCISCO I THINK MANY PEOPLE REALIZE THAT IT'S AN INFLATION SCARE AND NOT AN INFLATION PROBLEM SAYS MR WOOD BUT WAITING ON CLINTON IS CLEARLY PART OF WHAT IS MAKING INVESTORS SKITTISH PEOPLE WANT TO KNOW WHAT THE HEALTH CARE PACKAGE AND THE TAX PACKAGE ARE GOING TO BE LIKE HE SAYS AND THEY'RE WONDERING WHAT THE FEDERAL RESERVE WILL DO NEXT WE HAVE AN ENVIRONMENT WHERE THE INFLATION NUMBERS SUGGEST THAT MAYBE THE FED OUGHT TO RAISE INTEREST RATES HE SAYS BUT WE ALSO HAVE HAD WEAK ECONOMIC AND MONEYSUPPLY NUMBERS SO THE FED IS BETWEEN A ROCK AND A HARD PLACE THE POLICYMAKING ARM OF THE FED THE FEDERAL OPEN MARKET COMMITTEE IS SCHEDULED TO MEET BEGINNING TOMORROW WHILE MOST IN THE BOND MARKET THINK IT'S HIGHLY UNLIKELY THAT THE GROUP WILL PUSH FOR HIGHER INTEREST RATES THERE IS MUCH SPECULATION ABOUT WHETHER IT WILL VIEW THE LATEST INFLATION DATA AS A BLIP ON THE SCREEN OR A SEA CHANGE IN THE ECONOMY IF THE LATTER VIEW PREVAILS BOND PRICES COULD DROP AS MONEY MANAGERS GIVE UP HOPE FOR ANY FURTHER EASING OF INTEREST RATES ACCORDING TO JOHN LONSKI SENIOR ECONOMIST AT MOODY'S INVESTORS SERVICE INC WHILE INFLATION THIS YEAR IS UNLIKELY TO BE AS LOW AS LAST YEAR'S IT IS ALSO UNLIKELY TO LEAP SHARPLY HIGHER BY YEAR END THERE IS A CONSENSUS IN THE BOND MARKET NOW THAT INFLATION WILL REACH 35 THIS YEAR HE SAYS UP FROM 3 LAST YEAR AS MEASURED BY THE CONSUMER PRICE INDEX AND THAT WILL PROBABLY LEAVE US WITH A 30YEAR BOND YIELD OF 725 BY YEAR END HE SAYS HIGHER INFLATION THAN A 35 RATE HE SAYS WOULD HAVE TO COME FROM SUBSTANTIALLY FASTER WAGE AND SALARY GROWTH AND THAT DOES NOT APPEAR TO BE FORTHCOMING MR LONSKI SAYS THAT BOND YIELDS COULD DIP ONCE AGAIN BUT HE ISN'T HOPEFUL THAT THEY WILL PIERCE 671 THE RECENTLY ATTAINED LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 I THINK YOU CAN SAY WITH CONFIDENCE THAT WE'VE SEEN THE LOW FOR THE 30YEAR BOND YIELD AT 671 HE SAYS SOME OTHER ECONOMISTS ARE EVEN MORE PESSIMISTIC THE BOND MARKET RALLY IS OVER SAYS DAVID JONES CHIEF ECONOMIST AT AUBREY G LANSTON & CO THE FIRST ROUND OF REPORTS SHOWING HIGHER INFLATION WAS MERELY A SCARE HE SAYS BUT THIS LAST ONE IS NOT MR JONES POINTS TO SOME PRICE INCREASES IN THE STEEL AND AUTO INDUSTRIES AS SIGNS THAT SOMETHING SIGNIFICANT IS HAPPENING HE SAYS THAT THE COSTS OF MR CLINTON'S PLANS TO REFORM THE HEALTH SYSTEM FUND JOB TRAINING PROGRAMS RAISE INCOME TAXES AND INSTITUTE ENERGY TAXES ARE GOING TO BOOST BOND YIELDS AS INFLATIONARY PRESSURES GROW BUT HE DOESN'T BELIEVE INFLATION AND BOND YIELDS ARE GOING TO BE RACING SHARPLY HIGHER WE'LL SEE AN UPWARD DRIFT IN LONGTERM BOND RATES HE SAYS BUT IT'S NOT GOING TO BE SHARP HE SAYS THE 30YEAR BOND YIELD COULD HIT 725 BY THE END OF JUNE AND 750 BY YEAR END TREASURY DEBT PRICES FINISHED NARROWLY MIXED PRICES FOR TREASURYS MATURING IN 10 YEARS OR MORE ROSE SLIGHTLY WHILE OTHER PRICES EASED THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 1/4 POINT TO 102 10/32 TO YIELD 693 DOWN FROM 695 ON THURSDAY THE 10YEAR NOTE ROSE JUST 1/32 TO 101 23/32 TO YIELD 60 DOWN FROM 601 BUT THE THREEYEAR NOTE DROPPED 1/8 POINT TO 99 16/32 TO YIELD 441 UP FROM 436 WHILE TRADING IS TYPICALLY LIGHT ON FRIDAYS IT WAS COMPOUNDED THIS TIME BY A HESITANCY TO TAKE ACTION THE MARKET WAS HIT BY TWO BEARISH REPORTS EARLIER IN THE WEEK THAT SHOWED INFLATIONARY PRESSURES WERE SURGING ON BOTH THE WHOLESALE AND CONSUMER LEVELS TRADERS AND ANALYSTS SAID AFTER GETTING THE LAST LEG OF THE 35 BILLION MAY REFUNDING BEHIND THEM THURSDAY PLAYERS WHO HAD BET ON THE POSSIBILITY OF ANOTHER EASING OF SHORTTERM INTEREST RATES BY THE FEDERAL RESERVE REVERSED THEIR POSITIONS FRIDAY MORNING BY SELLING SHORTTERM NOTES AND FLATTENING THE YIELD CURVE A GRAPH OF YIELDS FOR VARIOUS MATURITIES OF DEBT A FLATTER YIELD CURVE MEANS THAT THE GAP BETWEEN SHORT AND LONGTERM RATES HAS NARROWED FRIDAY MORNING THE SPREAD BETWEEN THE TWOYEAR NOTE AND THE 30YEAR BOND NARROWED TO 297 PERCENTAGE POINTS FROM 304 PERCENTAGE POINTS LATE THURSDAY BUT MR CLINTON SPEAKING AT A WHITE HOUSE NEWS CONFERENCE FRIDAY SAID A CHANGE IN INTERESTRATE POLICY SHOULDN'T BE BASED ON ONE MONTH'S DATA THERE ARE SOME CLEAR UNDERLYING REASONS FOR THIS LAST INFLATIONARY BULGE WHICH DON'T NECESSARILY PORTEND LONGTERM INFLATION THE PRESIDENT SAID IN A RESPONSE TO REPORTERS' QUESTIONS PRICES CAME OFF LOWS IN THE AFTERNOON LESS IN RESPONSE TO MR CLINTON'S WORDS THAN A NEED BY SOME DEALERS TO COVER SHORT POSITIONS WHERE THEY HAD SOLD BORROWED SECURITIES IN THE HOPE OF BUYING THEM BACK LATER AT A LOWER PRICE SEE RELATED STORY YOUR MONEY MATTERS BUT JUST HOW RISKY ARE BONDS FOR YOU WSJ MAY 17 1993 9305170021 930517 BUSINESS BRIEF INTERTAN INC COMPANY TO DISCONTINUE EUROPEAN RETAIL OPERATION INTERTAN INC SAID IT PLANS TO DISCONTINUE ITS ENTIRE RETAIL OPERATION IN CONTINENTAL EUROPE INTERTAN A BARRIE ONTARIO RETAILER OF CONSUMER ELECTRONIC PRODUCTS SAID IT WILL CLOSE 210 STORES IN FRANCE 92 STORES IN BELGIUM AND ITS EUROPEAN HEADQUARTERS NEAR BRUSSELS THE COMPANY SAID IT EXPECTS A PRETAX CHARGE OF BETWEEN 70 MILLION AND 80 MILLION CANADIAN DOLLARS US55 MILLION63 MILLION TO COVER LEASE COSTS INVENTORY LIQUIDATION PAYROLL AND SEVERANCE PAYMENTS TO ITS 1000 EMPLOYEES IN CONTINENTAL EUROPE KEITH WETTLAUFER SENIOR VICE PRESIDENT OF FINANCE AND ADMINISTRATION SAID THE EUROPEAN STORES WHICH OPERATE UNDER THE TANDY BANNER SUFFERED FROM LOW SALES VOLUMES AND PERSISTENT LOSSES INTERTAN WAS SET UP IN 1986 TO OWN AND OPERATE THE NONUS RETAIL STORE OPERATIONS OF TANDY CORP FORTH WORTH TEXAS INTERTAN STOCK CLOSED AT 825 A SHARE UP 1375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE INTERTAN INC EXPECTS TO TAKE A PRETAX CHARGE OF 70 MILLION TO 80 MILLION FOR THE CLOSURE OF ITS EUROPEAN OPERATIONS AN ARTICLE IN YESTERDAY'S BUSINESS BRIEFS SECTION INCORRECTLY REPORTED THE FIGURES IN CANADIAN DOLLARS 9305170020 930517 BUSINESS BRIEF JAMES RIVER CORP OCCIDENTAL FOREST WILL SELL STAKE IN DIAMOND OCCIDENTAL PAPER PRODUCTS MAKER JAMES RIVER CORP SAID IT RECEIVED NOTICE FROM OCCIDENTAL FOREST INC THAT IT WILL SELL ITS 77 STAKE IN DIAMOND OCCIDENTAL FOREST INC TO JAMES RIVER JAMES RIVER OF RICHMOND VA SAID IT PLANS TO PAY ABOUT 198 MILLION FOR THE OCCIDENTAL STAKE JAMES RIVER CURRENTLY OWNS THE OTHER 23 STAKE IN DIAMOND OCCIDENTAL THE TRANSACTION IS EXPECTED TO CLOSE BY NOVEMBER JAMES RIVER SAID DIAMOND OCCIDENTAL'S HOLDINGS INCLUDE 820000 ACRES OF FOREST LOCATED NEAR THREE MAJOR JAMES RIVER PULP AND PAPER MANUFACTURING FACILITIES IN THE SOUTHEAST AND NEW ENGLAND 9305170019 930517 BUSINESS BRIEF UNIGATE PLC FIRM POSTPONES OFFERING OF RESTAURANT UNIT'S SHARES UNIGATE PLC SAID IT POSTPONED THE PREVIOUSLY ANNOUNCED INITIAL PUBLIC OFFERING OF 154 MILLION COMMON SHARES OF ITS BLACKEYED PEA RESTAURANTS INC UNIT BECAUSE OF A DOWNTURN IN BUSINESS UNIGATE SAID THE OFFERING WAS POSTPONED BECAUSE THE UNIT'S RESTAURANT SALES WERE AFFECTED BY POOR WEATHER IN MARCH AND HAVE NOT YET FULLY RECOVERED TO MORE NORMAL LEVELS UNIGATE SAID IT INTENDS TO COMPLETE THE OFFERING AT AN APPROPRIATE TIME WHICH IT DIDN'T SPECIFY THE UNIT FILED A REGISTRATION STATEMENT FOR THE OFFERING WITH THE SECURITIES AND EXCHANGE COMMISSION LAST MONTH AT AN ESTIMATED PRICE OF 15 TO 17 A SHARE UNIGATE PLC IS A LONDONBASED HOLDING COMPANY WITH INTERESTS IN THE FOOD INDUSTRY BLACKEYED PEA IS A DALLASBASED RESTAURANT CHAIN 9305170018 930517 WHO'S NEWS TRANSCO ENERGY CO TRANSCO ENERGY CO HOUSTON JOHN U CLARKE SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER AND TREASURER OF THIS NATURAL GAS COMPANY RESIGNED EFFECTIVE MAY 31 MR CLARKE 40 YEARS OLD SAID HE WANTED TO SEEK NEW CHALLENGES BUT WOULDN'T BE MORE SPECIFIC THE COMPANY SAID IT EXPECTS TO NAME A NEW CHIEF FINANCIAL OFFICER AS SOON AS POSSIBLE IN THE MEANTIME LARRY J DAGLEY SENIOR VICE PRESIDENT AND CONTROLLER WILL ASSUME THOSE DUTIES 9305170017 930517 INTERNATIONAL BELIEF IN AN IMMINENT ASIAN CENTURY IS GAINING SWAY INDICATORS POINT TO LIKELY GLOBAL ECONOMIC DOMINANCE IN 25 YEARS OR SO BY URBAN C LEHNER STAFF REPORTER OF THE WALL STREET JOURNAL SOMETIME EARLY IN THE NEXT CENTURY ASIA WILL ECLIPSE NORTH AMERICA AS THE WORLD'S MOST POWERFUL REGION THAT DRAMATIC IDEA IS GAINING CONSIDER ABLE POPULARITY IN ASIA THESE DAYS HOW EVER MUCH SOME MAY DISPUTE IT ONE OF ITS MOST ENTHUSIASTIC ADVOCATES IS GEORGE YEO SINGAPORE'S MINISTER OF INFORMATION THE 38YEAROLD MR YEO NOT ONLY BELIEVES THAT ASIA IS LIKELY SOON TO BE THE WORLD'S DOMINANT REGION ECONOMICALLY BUT THAT THIS ECONOMIC DOMINANCE WILL INEVITABLY TRANSLATE INTO POLITICAL AND CULTURAL POWER AS WELL MAKING ASIA TRULY THE WORLD'S LEADER IN 25 YEARS THE COMBINED GNP OF EAST ASIA WILL BE LARGER THAN ALL OF EUROPE'S AND TWICE THAT OF THE US MR YEO DECLARED IN A SPEECH IN DAVOS SWITZERLAND IN FEBRUARY GNP OR GROSS NATIONAL PRODUCT IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A COUNTRY THE UNFOLDING EAST ASIAN RENAISSANCE WILL CHALLENGE AND TRANSFORM ALL CULTURES IN THE WORLD AND CHANGE THE WAY MAN LOOKS AT HIMSELF IT'S A THESIS OF OBVIOUS RELEVANCE TO ANYONE INTERESTED IN ASIA'S WORLD ROLE FOR IF ASIA'S ROLE REALLY IS TO BE NO 1 THE IMPLICATIONS WOULD BE PROFOUND MR YEO CITES THE MASS MEDIA AS AN EXAMPLE OF THE EPOCHAL POWER SHIFT HE THINKS LIES AHEAD THE WESTERN DOMINATION OF THE GLOBAL MEDIA WILL BE CONTESTED HE PREDICTED IN HIS DAVOS SPEECH BUT CLEARLY THE IMPLICATIONS OF A POWER SHIFT WOULDN'T STOP THERE ASIAN SPOKESMEN WOULD HAVE A BIGGER SAY IN WORLD COUNCILS ASIAN VIEWPOINTS ON HUMAN RIGHTS ECONOMIC GROWTH AND THE ENVIRONMENT WOULD COMMAND MORE OF A HEARING IN THE WORLD MARKETPLACE OF IDEAS WESTERN NATIONS AND THE US IN PARTICULAR WOULD NO LONGER BE FREE TO PUSH ASIA AROUND IMPOSING SANCTIONS AND ERECTING PROTECTIONIST BARRIERS WILLYNILLY INSTEAD ASIA MIGHT DO A LITTLE PUSHING AROUND OF ITS OWN WISHFUL THINKING PERHAPS BUT IT'S EASY TO UNDERSTAND WHY SOME ASIANS HAVE SUCH AN OPTIMISTIC VIEW OF ASIA'S PROSPECTS THE IMMEDIATE REASONS INCLUDE CHINA'S ECONOMIC BOOM AND THE RESILIENCE OF ECONOMIC GROWTH THROUGHOUT THE REGION EVEN DURING A PERIOD OF US AND EUROPEAN RECESSIONS NO LONGER DOES ASIA CATCH A COLD WHEN AMERICA SNEEZES IN FACT MANY ASIANS SUBSCRIBE TO THE VIEW THAT THE US IS IRREVERSIBLY IN DECLINE THE DEEPER UNDERLYING REASONS ARE ASIA'S THREE BILLION PEOPLE AND THE GROWING CONFIDENCE IN THE REGION THAT ASIA KNOWS HOW TO PUT THESE MULTITUDES TO WORK PRODUCTIVELY IN THE PAST HAVING MORE THAN HALF OF THE EARTH'S POPULATION ON LESS THAN A THIRD OF THE EARTH'S AVAILABLE LAND SEEMED LIKE AN OBSTACLE TO ASIA'S MODERNIZATION BUT IN THE PAST GENERATION ONE DENSELY POPULATED ASIAN COUNTRY AFTER ANOTHER HAS FOLLOWED JAPAN DOWN THE ROAD OF RAPID ECONOMIC DEVELOPMENT AND RAPID LABORPRODUCTIVITY GROWTH AND NOW CHINA SEEMS HEADED DOWN THAT ROAD AS WELL WITH A POPULATION 10 TIMES THAT OF NORTH AMERICA AND SIX TIMES THAT OF EUROPE AND WITH FASTER GROWTH RATES THAN EITHER NORTH AMERICA OR EUROPE ASIA AT SOME POINT WOULD INEVITABLY OVERTAKE THE OTHER TWO REGIONS ECONOMICALLY IN TOTAL OUTPUT IF NOT IN PERCAPITA TERMS AND THAT POINT MAY BE COMING SOONER THAN PERHAPS MOST AMERICANS AND EUROPEANS REALIZE INCLUDING JAPAN ASIA'S ECONOMIC OUTPUT COULD OVERTAKE NORTH AMERICA'S AS EARLY AS 1996 PREDICTS DAVID O'REAR SE NIOR CONSULTANT AND REGIONAL ECONOMIST AT THE ECONOMIST INTELLIGENCE UNIT IN HONG KONG EXCLUDING JAPAN MR O'REAR SEES ASIA OVERTAKING NORTH AMERICA IN 2018 AND THE EUROPEAN COMMUNITY IN 2022 ENZIO VON PFEIL CHIEF REGIONAL ECONOMIST AT SG WARBURG SECURITIES FAR EAST LTD IN HONG KONG SEES ASIA MINUS JAPAN OVERTAKING THE US IN 2015 AND THE EC IN 2020 LOOKING OUT OVER A LONGER PERIOD SOME PEOPLE IN THE REGION SEE AN EVEN BIGGER ECONOMIC ROLE FOR ASIA GUS HOOKE AN AUSTRALIAN ECONOMIST PREDICTS THAT BY 2050 ASIA EXCLUDING JAPAN WILL ACCOUNT FOR 57 OF THE WORLD'S ECONOMY THE 24 INDUSTRIALIZED COUNTRIES THAT MAKE UP THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT INCLUDING THE US JAPAN AND MOST OF EUROPE WILL ACCOUNT FOR ONLY 12 MR HOOKE PREDICTS IN 1990 BY CONTRAST THE OECD COUNTRIES ACCOUNTED FOR 74 OF THE WORLD'S ECONOMY WHILE ASIA HAD ONLY 9 THE LOGICAL LEAP FROM THAT KIND OF ECONOMIC DOMINANCE TO POLITICAL AND CULTURAL POWER IS PRACTICALLY EFFORTLESS THE US TODAY IS ABLE TO EXTRACT TRADE CONCESSIONS AND PROMISES OF HUMAN RIGHTS IMPROVEMENTS FROM ASIAN NATIONS AT LEAST IN PART BECAUSE ALL OF THEM COVET ACCESS TO THE HUGE RICH US MARKET IN THE FUTURE THE HUGE RICH MARKETS WILL BE IN ASIA OR SO GOES THE ASIAASNO 1 THESIS BUT DOES THE THESIS HOLD WATER HERE ARE SOME OF THE PLACES CRITICS SEE LEAKS STRAIGHTLINE PROJECTIONS INTO THE DISTANT FUTURE ARE INHERENTLY RISKY CONSIDER THE NOTIMPLAUSIBLE SCENARIO THAT THE US ECONOMY EXPERIENCES A SPURT OF REAL RECOVERY NEXT YEAR WHILE CHINA'S JUGGERNAUT STUMBLES ON INFRASTRUCTURE BOTTLENECKS AND INFLATION REDOING THE FORECAST WITH NEW GROWTH RATES TO TAKE THAT REVERSAL OF FORTUNES INTO ACCOUNT ASIA MIGHT NOT OVERTAKE THE OTHER TWO REGIONS UNTIL 2025 OR 2030 THE FARTHER OUT THE DATE THE GREATER THE LIKELIHOOD THAT UNEXPECTED INTERVENING EVENTS RENDER THE WHOLE EXERCISE IRRELEVANT LET CHINA SUFFER A RECESSION LASTING TWO OR THREE YEARS AND PEOPLE MIGHT BE RETHINKING THE WHOLE IDEA DON'T FORGET THE COMPETITION NORTH AMERICA AND EUROPE MAY HAVE SMALLER POPULATIONS BUT THEY START FROM A MUCH HIGHER BASE OF WEALTH AND TECHNOLOGY AND THEIR GROWTH RATES MIGHT NOT STAGNATE FOREVER THE US HAS ITS PROBLEMS BUT MANY ASIANS SEEM TO HAVE AN OVERLY PESSIMISTIC VIEW OF ITS PROSPECTS ASIA ISN'T ONE PLACE MANY OF THOSE CELEBRATING ASIA'S RISE COME FROM SMALLER COUNTRIES IN THE REGION IN CHINA THEY DON'T TALK ABOUT ASIA AS NO 1 THEY TALK ABOUT CHINA AS THE NEXT SUPERPOWER BEFORE BASKING IN THE GLOW OF CHINA'S MODERNIZATION OTHER ASIANS MUST PONDER WHETHER THEY CAN FORM A UNITED FRONT WITH THIS SUPERPOWER OR WHETHER CHINA'S RISE TO SUPERPOWER STATUS WON'T INEVITABLY TRIGGER INTRAASIAN CONFLICTS THAT WILL PREVENT ASIA FROM MAKING THE MOST OF ITS ADVANTAGES EVEN ASSUMING NO CONFLICTS WILL ASIA BE ONE BIG MARKET OR MANY THE LESS UNIFIED IT IS THE LESS ABILITY IT HAS TO EXERT INFLUENCE IN THE WORLD ECONOMICS ISN'T EVERYTHING THAT'S WORTH STRESSING BECAUSE SO MANY ASIANS SEE JAPAN AS THE PARADIGM FOR THEIR FUTURE BIG ON FINANCIAL AND TECHNOLOGICAL MUSCLE LIGHT ON MILITARY MIGHT BUT THE JAPAN FORMULA ONLY WORKS BECAUSE OF JAPAN'S RELATIONSHIP WITH THE US A RELATIONSHIP THAT BENEFITS JAPAN ENORMOUSLY AT THE SAME TIME IT DETRACTS FROM JAPAN'S ABILITY TO BE NO 1 THE RELATIONSHIP BETWEEN ECONOMIC POWER ON THE ONE HAND AND POLITICAL AND CULTURAL POWER ON THE OTHER IS AT BEST INDIRECT BRITAIN'S ECONOMY HAS BEEN IN RELATIVE DECLINE FOR A CENTURY WHILE JAPAN'S HAS SOARED TO THE NO 2 POSITION IN THE WORLD BUT THAT DOESN'T MEAN JAPAN PROJECTS MORE POLITICAL OR CULTURAL POWER THAN BRITAIN NATIONAL POWER CAN HELP PROMOTE THE SPREAD OF A NATION'S POPULAR CULTURE TO BE SURE BUT A POWERFUL IDEA CAN HAVE A LIFE OF ITS OWN REGARDLESS OF THE NATIONALITY OF ITS ORIGINATOR AND VICE VERSA GANDHI'S NONVIOLENT RESISTANCE GAINED ADHERENTS AROUND THE WORLD EVEN THOUGH INDIA WAS HARDLY A BASTION OF ECONOMIC STRENGTH SINGAPORE IS A TINY ISLAND REPUBLIC BUT ITS INTELLECTUALS' TRENCHANT ARTICLES APPEAR ON OPED PAGES AROUND THE WORLD BEWARE THE MAGIC OF STATISTICS THE TIME FRAME FOR ASIA OVERTAKING THE OTHER TWO REGIONS DEPENDS IN PART ON HOW BIG ASIA'S ECONOMY AND IN PARTICULAR CHINA'S ECONOMY IS NOW IF CHINA'S PERCAPITA GROSS DOMESTIC PRODUCT IS 370 A YEAR AS OFFICIAL STATISTICS INDICATE THEN CHINA'S OVERALL OUTPUT IS LESS THAN A TENTH OF THAT OF THE US IF THE FIGURE IS 1950 A YEAR AS A WORLD BANK REPORT CONCLUDED BY USING REGRESSION ANALYSIS INSTEAD OF THE REPORTED DATA CHINA'S OUTPUT NOW IS ALMOST HALF THAT OF THE US AT SOME POINT ASIA LOGICALLY OUGHT TO HAVE A BIGGER ECONOMY THAN EUROPE AND AMERICA BUT WHILE HAVING THE HIGHEST TOTAL ECONOMIC OUTPUT WILL BOOST ASIA'S PRIDE CATCHING UP WITH THE REST OF THE WORLD IN PERCAPITA TERMS WILL TAKE MUCH LONGER FOR THE HAPPINESS OF ASIA'S CITIZENS IF NOT THE REGION'S ABILITY TO PROJECT POWER IT'S THE LATTER THAT MATTERS MOST 9305170016 930517 TECHNOLOGY & HEALTH DIGITAL UNVEILS CABLE TECHNOLOGY FOR NETWORK ACCESS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL DIGITAL EQUIPMENT CORP AND A SMALL STARTUP COMPANY ANNOUNCED TECHNOLOGY THAT ALLOWS HIGHSPEED MULTIMEDIA DATA NETWORKING OVER ORDINARY CABLE TELEVISION LINES IN DIRECT COMPETITION WITH LOCAL TELEPHONE COMPANIES DIGITAL OF MAYNARD MASS WILL OFFER ITS SERVICES IN PARTNERSHIP WITH CABLE COMPANIES TARGETING BUSINESSES UNIVERSITIES LOCAL GOVERNMENTS OR HOSPITALS THAT NEED TO SEND DATA BETWEEN COMPUTERS AT DIFFERENT SITES WITHIN A CITY OR TOWN THE TECHNOLOGY USES EXISTING STANDARD CABLE CHANNELS AND CAN CONNECT SITES UP TO 70 MILES APART ANALYSTS AND CABLE OPERATORS FAMILIAR WITH THE TECHNOLOGY WERE ENTHUSIASTIC THIS IS THE FIRST INEXPENSIVE HIGHSPEED PUBLIC DATA NETWORKING TECHNOLOGY THAT RUNS OVER CABLE SAID ROBERT J RICH A COMMUNICATIONS ANALYST WITH DATAQUEST INC OF SAN JOSE CALIF WE HAVE CUSTOMERS WAITING IN LINE TO USE THIS TECHNOLOGY SAID NEAL FONDREN GENERAL MANAGER OF SCRIPPSHOWARD OF NORTHWEST GEORGIA ONE OF SEVERAL SMALL CABLE COMPANIES THAT'S BEEN TESTING THE TECHNOLOGY HE SAID ONE OF ITS FIRST USES INCLUDED PHYSICIANS IN THREE SITES WHO WERE ABLE TO VIEW A COMPUTERIZED MAGNETICRESONANCE IMAGE WHILE DISCUSSING THE PATIENT'S CASE OVER A LIVE FULLMOTION VIDEO LINK RICHARD GREEN PRESIDENT OF CABLE TELEVISION LABORATORIES INC AN INDUSTRYBACKED RESEARCH CONSORTIUM IN BOULDER COLO CALLED THE TECHNOLOGY REALLY SIGNIFICANT A FIRST STEP TOWARD BRINGING A LARGE NUMBER OF HIGHSPEED DATA SERVICES TO BUSINESSES AND EVENTUALLY TO THE HOME OVER EXISTING CABLE TELEVISION LINES DIGITAL SAID IT IS WORKING WITH LANCITY CORP ANDOVER MASS WHICH MAKES THE KEY TECHNOLOGY NEEDED TO CREATE NETWORKS ON CABLE PHONE SYSTEMS THE SYSTEMS UTILIZE THE ETHERNET STANDARD THE MOST COMMON COMPUTER LOCALNETWORK TECHNOLOGY NOW IN USE AND RUN OVER STANDARD CABLE CHANNELS TO DELIVER 10 MEGABITS ASECOND OF DATA TRANSMISSION CAPACITY THAT'S ABOUT SEVEN TIMES THE CAPACITY OF THE COMMON T1 DATA LINES PROVIDED BY MOST TELEPHONE COMPANIES PETER KASTNER A CONSULTANT WITH ABERDEEN GROUP INC OF BOSTON SAID THAT WHILE THE SERVICE DOESN'T OFFER AS MUCH CAPACITY AS FIBEROPTIC LINES SUCH LINES AREN'T YET AS UBIQUITOUS AS CABLE THIS IS HERE NOW AT COMPETITIVE COSTS HE SAID THERE'S THE POTENTIAL HERE FOR IMMEDIATE NEW REVENUE FOR CABLE TV COMPANIES CABLE OPERATORS ARE EXPECTED TO CHARGE LESS THAN 500 A MONTH FOR THE LINES AFTER INSTALLATION CHARGES WHICH COMPARES FAVORABLY TO THE 500 TO 700 COST OF TYPICAL T1 LINES THAT PROVIDE FAR LESS CAPACITY SAID MR RICH THE DATAQUEST ANALYST HE SAID CABLE OPERATORS ARE EAGER TO PROVIDE NEW SERVICES NOW THAT CONGRESS HAS ROLLED BACK THE RATES THEY CHARGE FOR DELIVERING STANDARD CABLE TV MR RICH CALLED IT THE FIRST REALLY PRACTICAL OPPORTUNITY FOR CABLE COMPANIES TO GET INTO THE PHONE COMPANIES' BACKYARD AT THE SAME TIME THE PHONE COMPANIES ARE TRYING TO INVADE CABLEINDUSTRY TERRITORY BY SEEKING TO OFFER VIDEO ENTERTAINMENT OVER PHONE LINES 9305170015 930517 SURPRISE RISE INFLATION IS PICKING UP DESPITE AN ECONOMY THAT CONTINUES SLOW STEEL AND AUTO PRICES CLIMB ON FOREIGN RIVALS' WOES EVEN FUNERALS COST MORE BUT NO ONE PREDICTS A SURGE BY DAVID WESSEL AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL THE ECONOMY CAN'T GET OFF ITS KNEES UNEMPLOYMENT REMAINS AT 7 WAGES ARE MOVING AT A CRAWL CONSUMERS ARE CAUTIOUS MOST FACTORIES ARE OPERATING BELOW CAPACITY OIL PRICES ARE CALM CREDIT IS IN SHORT SUPPLY THERE IS NO WAY INFLATION COULD PICK UP IN SUCH A BECALMED ECONOMY BUT IT IS DOING JUST THAT REFUSING TO COOPERATE WITH ECONOMIC LOGIC THE GOVERNMENT'S CONSUMER PRICE INDEX WHICH ROSE ONLY 29 LAST YEAR HAS CLIMBED AT A 43 ANNUAL RATE SO FAR THIS YEAR EARLIER BAD INFLATION FIGURES WERE DISMISSED AS FLUKES OR DUE TO BAD WEATHER BUT AFTER FOUR MONTHS IT IS INCREASINGLY DIFFICULT TO DO SO THROW OUT ALL THE FORECASTS THAT INFLATION WAS GOING TO BE DOWN THE QUESTION IS HOW MUCH IS IT GOING TO BE UP SAYS DONALD RATAJCZAK A WELLREGARDED INFLATION ANALYST AT GEORGIA STATE UNIVERSITY NO REPUTABLE FORECASTER EXPECTS INFLATION TO BE ANYWHERE NEAR 4 THIS YEAR MR RATAJCZAK EXPECTS A MODERATE 34 UP SLIGHTLY FROM EARLIER FORECASTS AND EXECUTIVES IN MANY INDUSTRIES INSIST THAT IT REMAINS NEARLY IMPOSSIBLE TO MAKE PRICE INCREASES STICK THERE IS NO SIGN OF INFLATION ANYWHERE JOHN F WELCH JR CHIEF EXECUTIVE OF GENERAL ELECTRIC CO SAID EARLIER THIS MONTH BUT BUSINESSES RANGING FROM STEEL MILLS TO FUNERAL PARLORS ARE RAISING PRICES SIGNIFICANTLY OFTEN FOR REASONS THAT DON'T SHOW UP IN ECONOMIC TEXTBOOKS GOVERNMENT TRADE REGULATORY AND ENVIRONMENTAL POLICIES THOSE THAT GEORGE BUSH LEFT BEHIND AND THOSE THAT BILL CLINTON IS PUSHING MAY BE PARTLY TO BLAME MR RATAJCZAK SAYS GOVERNMENT POLICIES MAY BE ADDING PERHAPS 03 PERCENTAGE POINT OR MORE TO THE INFLATION RATE AND THAT IS BEFORE FACTORING IN THE POSSIBILITY THAT MR CLINTON'S HEALTHCARE PLAN WILL PUSH UP EMPLOYER COSTS IN THE NEAR TERM EVEN THOUGH ITS AIM IS TO PULL DOWN COSTS IN THE LONG TERM TAKE THE STEEL INDUSTRY WHICH COULDN'T RAISE PRICES LAST YEAR EVEN THOUGH MILLS WERE RUNNING CLOSE TO CAPACITY WITH STEEL IMPORTS BLOCKED BY A PRELIMINARY FEDERAL RULING THAT THEY WERE PRICED UNFAIRLY BIG US STEELMAKERS ARE INCREASING PRICES AGGRESSIVELY SHEETSTEEL PRICES ARE UP 15 THIS YEAR INCLUDING AN INCREASE SLATED TO TAKE EFFECT THIS SUMMER US AUTO MAKERS ARE RAISING PRICES TOO TAKING ADVANTAGE OF JAPANESE PRICE INCREASES IN THE US IN RESPONSE TO PROTECTIONIST TALK AND THE STRONG YEN CHRYSLER CORP HAS INCREASED PRICES THREE TIMES IN THE PAST YEAR THE BASIC PLYMOUTH MINIVAN COST 13501 LAST FALL TODAY IT LISTS FOR 14248 UP 55 A SPURT IN LUMBER PRICES EARLIER THIS YEAR WAS PARTLY TRIGGERED BY FEARS ABOUT FEDERAL ENVIRONMENTAL POLICY THE SHORTAGE OF TIMBER FROM FEDERAL LANDS IN THE PACIFIC NORTHWEST THROUGH EFFORTS TO PROTECT THE SPOTTED OWL HAS BEEN A CONTRIBUTING FACTOR SAYS ROBERT HAYES A SPOKESMAN FOR BOISE CASCADE CORP THE BOISE IDAHO WOODPRODUCTS COMPANY THE SCARE SEEMS TO HAVE BEEN EXAGGERATED LUMBER PRICES ON COMMODITY AND FUTURES EXCHANGES ARE NOW BACK TO WHERE THEY WERE AT THE BEGINNING OF THE YEAR BUT NOT JUST MANUFACTURERS ARE PUSHING UP THE COST OF LIVING OR DYING THE NATIONAL CATTLEMEN'S ASSOCIATION SAYS TBONE STEAKS ARE GOING FOR 565 A POUND UP 68 FROM LAST YEAR CARMIKE CINEMAS INC OF COLUMBUS GA THE NATION'S FOURTHLARGEST MOVIETHEATER CHAIN IS BOOSTING TICKET PRICES 25 CENTS ON MEMORIAL DAY WEEKEND AFTER HOLDING THE LINE FOR TWO YEARS AND SERVICE CORPORATION INTERNATIONAL INC OF HOUSTON SAYS THE AVERAGE COST OF A FUNERAL AT ITS 682 FUNERAL HOMES WAS 3605 LAST MONTH UP 45 FROM A YEAR EARLIER IN LIGHT OF ALL THIS WALL STREET ANALYSTS AND TRADERS ARE RETHINKING THE RATIONALE FOR THE RALLY IN BOND PRICES THAT HAS REDUCED LONGTERM INTEREST RATES THE YIELD ON 30YEAR GOVERNMENT BONDS HIT 695 LAST WEEK THE HIGHEST IN A MONTH BEFORE DIPPING TO 693 FRIDAY IF INFLATION FEARS SEND THIS YEAR'S DROP IN LONGTERM RATES INTO REVERSE THEY WOULD UNDERCUT ONE GOAL OF PRESIDENT CLINTON'S ECONOMIC STRATEGY HIS ADVISERS HAVE BEEN COUNTING ON LOW INTEREST RATES TO CUSHION THE ECONOMY AS HE RAISES TAXES AND CURBS SPENDING NOW THEY ARE BEGINNING TO WORRY THAT MORE BAD INFLATION NEWS COULD DASH THOSE HOPES AND LEAD THE FEDERAL RESERVE AND THE BOND MARKET TO PUSH RATES UP WE OUGHT TO WAIT TILL WE HAVE SOME MORE EVIDENCE BEFORE WE RAISE INTEREST RATES IN AN ECONOMY WHERE INDUSTRIAL CAPACITY IS ONLY AT 80 MR CLINTON SAID FRIDAY IF YOU LOOK AT ALL THE UNDERLYING LONGTERM THINGS LONGTERM TRENDS IN ENERGY PRICES INDUSTRIAL CAPACITY THE KIND OF THINGS THAT REALLY SHAPE AN ECONOMY THERE IS NO REASON AT THIS TIME TO BELIEVE THAT THERE COULD BE ANY CAUSE FOR RESURGENT INFLATION FED OFFICIALS WILL PONDER THE INFLATION PUZZLE WHEN THEY MEET TOMORROW TO SET POLICY FOR THE NEXT SEVERAL WEEKS AN IMMEDIATE INCREASE IN RATES IS UNLIKELY BUT SOME FED OFFICIALS ARE UNEASY ABOUT KEEPING SHORTTERM RATES AT 3 IF IT BECOMES CLEAR THAT INFLATION IS SIGNIFICANTLY HIGHER THAN THAT ALREADY FED ECONOMISTS HAVE BEEN ASKED TO EXPLORE WHETHER PERHAPS A NEW SORT OF INFLATION IS EMERGING THE OLD ECONOMIC AND FINANCIAL VERITIES HAVEN'T SERVED US PARTICULARLY WELL IN UNDERSTANDING THE AMERICAN ECONOMY IN RECENT YEARS FED CHAIRMAN ALAN GREENSPAN SAID IN A MIDAPRIL SPEECH IN WHICH HE TICKED OFF MANY REASONS TO BELIEVE THAT INFLATION WOULD REMAIN QUIESCENT AT THE TIME AN INFLATION FRIGHT HAD BEEN CALMED BY SOME FAVORABLE STATISTICS BUT MR GREENSPAN WARNED WE NEED TO BE ESPECIALLY VIGILANT NOT TO BE MESMERIZED BY THE CURRENT TRANQUILLITY OF THE INFLATIONARY ENVIRONMENT WITH THE LATEST DATA IN HAND IT IS UNLIKELY THAT ANYONE AT TOMORROW'S FED MEETING WILL BE TALKING ABOUT INFLATIONARY TRANQUILLITY BEYOND THE INFLATION FIGURES THERE IS CONCERN AT THE FED OVER A REVISION TO ITS OWN STATISTICS RELEASED FRIDAY SHOWING THE INDUSTRIAL ECONOMY OPERATING A COUPLE OF PERCENTAGE POINTS CLOSER TO CAPACITY THAN HAD PREVIOUSLY BEEN BELIEVEDTHOUGH STILL SHY OF THE DANGER ZONE WHERE BOTTLENECKS LEAD TO INFLATION THE MEASURE IS SIGNIFICANT BECAUSE THE OVERALL INFLATION RATE HAS BEEN HELD DOWN IN THE PAST FEW YEARS BY THE INABILITY OF SO MANY INDUSTRIES SADDLED WITH OVERCAPACITY AND WEAK DEMAND TO RAISE PRICES ONE REASON TO SUSPECT THAT THE INFLATION RATE IS GOING TO CREEP UP FURTHER IS THAT SOME OF THESE INDUSTRIES ARE NOW TRYING TO MAKE UP FOR MONTHS OF HOLDING BACK FOR THE PAST SEVERAL YEARS THE PAPER AND PACKAGING INDUSTRY HAS BEEN FORCED TO CUT PRICES THAT IS BEGINNING TO CHANGE PRICES FOR COATED GROUND WOOD USED FOR MAGAZINE COVERS AND MAILORDER CATALOGS AND UNCOATED WHITE PAPER USED IN PHOTO COPIES AND BUSINESS FORMS ARE RISING WE WERE OPERATING AT A LOSS SAYS ROBERT BUTLER CHIEF FINANCIAL OFFICER OF INTERNATIONAL PAPER CO WE'RE JUST TRYING TO GET BACK TO THE PRICE LEVELS WHERE WE WERE BEFORE BUT THAT DOESN'T MEAN THE PRICE INCREASES AREN'T CONTRIBUTING TO INFLATIONARY PRESSURES CHAMPION INTERNATIONAL CORP OF STAMFORD CONN HAS RAISED PRICES ON UNCOATED PAPER TWICE THIS YEAR BETWEEN 5 AND 10 EACH TIME THE FIRST INCREASE STUCK AND THE SECOND LOOKS AS IF IT WILL TOO A SPOKESWOMAN SAYS DEMAND IS COMING BACK AND THERE'S LITTLETONO NEW SUPPLY ON THE HORIZON SHE SAYS IT ISN'T ALWAYS EASY FOR INDUSTRIES THAT MAKE PAPER PRODUCTS TO PASS THE PRICE INCREASES ALONG THOUGH FONDA PAPER CO IN ST ALBANS VT RECENTLY RAISED PRICES OF THE PAPER PLATES THAT IT SELLS TO SUPERMARKETS BY 11 THE FIRST INCREASE IN THREE YEARS WE'RE NOT SURE WHETHER IT'S GOING TO STICK OR NOT ADMITS JUDY MILLER FONDA'S SALES MANAGER UNTIL LAST WEEK AT GRAND UNION CO A SUPERMARKET CHAIN BASED IN WAYNE NJ NED E MEARA CORPORATE MERCHANDISING MANAGER COMMENTS THE PACKAGING INDUSTRY SEEMS TO BE ON A RELENTLESS COURSE OF ATTEMPTING TO GET INCREASES WE ARE FIGHTING EVERY INCREASE WE GET STILL THERE ARE ENOUGH REPORTS OF SUCCESSFUL PRICE INCREASES TO CAUSE CONCERN ETHAN ALLEN INTERIORS OF DANBURY CONN WHICH MAKES MOST OF THE FURNITURE IT SELLS THROUGH ITS 275 STORES RAISED PRICES RECENTLY BY 45 AFTER HOLDING STEADY FOR FOUR YEARS M FAROOQ KATHWARI ETHAN ALLEN'S CHAIRMAN CITES HEALTHCARE COSTS AND LUMBER PRICES PRICES FOR SOME TYPES OF MAPLE AND CHERRY THAT ARE USED IN ETHAN ALLEN'S FURNITURE ARE UP AS MUCH AS 60 HE SAYS HE SAYS HIS COMPANY'S FURNITURE PRICE INCREASES SHOULD STICK NOTING THAT STRONG DEMAND LIFTED SALES 10 IN THE FIRST QUARTER THERE ALSO ARE SIGNS THAT THE US AUTO INDUSTRY IS PUSHING UP PRICES EVEN THOUGH THE COST OF MAKING CARS IN THE US HAS HELD FLAT OR EVEN DECLINED SLIGHTLY THE GOVERNMENT'S INDEX OF NEWCAR PRICES WAS UP 05 IN APRIL THE LARGEST INCREASE SINCE FEBRUARY 1991 DOMESTIC AUTO MAKERS HAVE NUDGED UP PRICES AT A TIME WHEN WE TRADITIONALLY EXPECT TO SEE THEM LOWER BECAUSE OF SPRING SALES SAYS MR RATAJCZAK AT GEORGIA STATE WHY BECAUSE THE JAPANESE COMPETITION IS TRYING TO RECAPTURE THE YEN LOSSES AND BECAUSE THEIR GOVERNMENT IS KIND OF HINTING AT THEM THAT MAYBE IT WOULD BE A GOOD IDEA TO DECREASE THEIR SHARE OF THE US MARKET AFTER PUBLIC DISCUSSION IN LATE JANUARY OF THE BIG THREE'S PLAN TO FILE A COMPLAINT AGAINST THEIR JAPANESE COMPETITORS ACCUSING THEM OF SELLING CARS BELOW COST IN THE US HONDA MOTOR CO TOYOTA MOTOR CORP AND NISSAN MOTOR CORP ALL RAISED PRICES IN FEBRUARY THOUGH THE COMPLAINT NEVER MATERIALIZED A HONDA ACCORD LX WHICH COST 16100 LAST FALL IS SELLING FOR 16700 A 37 INCREASE GENERAL MOTORS CORP RAISED PRICES IN MARCH BY 1 TO 2 ON A LIMITED ARRAY OF MODELS IN APRIL CHRYSLER RAISED PRICES FOR THE SECOND TIME IN FOUR MONTHS THERE IS NO QUESTION THAT DETROIT IS TAKING ADVANTAGE OF THE JAPANESE PRICE UMBRELLA TO INCREASE PROFITS SAYS RONALD GLANTZ AN ANALYST AT DEAN WITTER REYNOLDS THE INCREASES IN JAPANESE CAR PRICES AREN'T DUE SOLELY TO THE YEN THE GEO PRIZM AND THE TOYOTA COROLLA ARE ALMOSTIDENTICAL CARS ASSEMBLED AT THE SAME CALIFORNIA PLANT IN A GMTOYOTA JOINT VENTURE BUT THE COROLLA SELLS FOR THOUSANDS OF DOLLARS MORE THAN THE PRIZM AND THE GAP BETWEEN THE TWO HAS STEADILY EXPANDED YOU CAN ARGUE THE JAPANESE CAN GET A PREMIUM PRICE FOR REPUTATION SAYS MR GLANTZ WHO WAS AN OFFICER ON THE JAPAN DESK AT THE TREASURY DEPARTMENT BEFORE HE JOINED DEAN WITTER BUT WHY DO THEY HAVE A PREMIUM PRICE NOW AND NOT TWO YEARS AGO I THINK THE ANSWER IS THAT TWO YEARS AGO YOU DIDN'T HAVE A PRESIDENT WHOSE CAMPAIGN WAS BASED ON JOBS FOR AMERICAN WORKERS IN OTHER INDUSTRIES THE DOLLAR'S DROP AGAINST THE JAPANESE YEN ENCOURAGED BY THE CLINTON ADMINISTRATION BECAUSE IT MAKES JAPANESE GOODS MORE COSTLY IN THE US AND US GOODS CHEAPER IN JAPAN HAS CONTRIBUTED TO THE RECENT SURGE IN INFLATION SINCE THE BEGINNING OF THE YEAR THE DOLLAR HAS FALLEN 11 AGAINST THE YEN WHEN THEIR ECONOMY WAS MUCH STRONGER THE JAPANESE WERE WILLING TO SQUEEZE THEIR PROFIT MARGINS TO MAINTAIN SHARE OF THE MARKET SAYS M KATHRYN EICKOFF A NEW YORK ECONOMIC CONSULTANT BUT WITH JAPANESE COMPANIES REELING FROM THE RECESSION THERE THAT IS LESS LIKELY THIS TIME JAPAN'S LARGEST MAKER OF HIGHQUALITY CERAMIC TABLEWARE NORITAKE CO SAYS IT MARKED UP ITS EXPORTS TO THE US BY 4 IN JANUARY AND ANOTHER 2 IN APRIL BECAUSE OF THE YEN AND A SPOKESMAN FOR HITACHI LTD THE ELECTRONICS GIANT SAYS IT HAS INCREASED PRICES OF CERTAIN COMPUTER CHIPS BY 5 TO 10 AND WITH PARTIAL SUCCESS IT IS TRYING TO RAISE PRICES ON COLORTELEVISION SETS VIDEOCASSETTE RECORDERS AND COMPUTERS IT IS IMPOSSIBLE TO COPE WITH SUCH A RAPID APPRECIATION OF THE YEN BY ANY OTHER MEANS A SPOKESMAN SAYS IF CONSUMER DEMAND PICKS UP IN THE US OTHER JAPANESE COMPANIES ARE EAGER TO FOLLOW THE LABOR DEPARTMENT'S INDEX OF IMPORT PRICES THOUGH STILL ISN'T MOVING UP MUCH BECAUSE THE DOLLAR HASN'T BEEN WEAK AGAINST OTHER CURRENCIES THE PRICE OF IMPORTS FROM JAPAN WAS UP 28 IN THE 12 MONTHS ENDED IN MARCH BUT THE PRICE OF IMPORTS FROM WESTERN EUROPE WAS DOWN 21 THE OVERALL INDEX ROSE ONLY 02 ONE DEVELOPMENT THAT DISTINGUISHES THE CURRENT INFLATION SCARE FROM PREVIOUS ONES IS THAT SOME TRADITIONAL VILLAINS ARE SITTING THIS ONE OUT DRUG COMPANIES FOR INSTANCE ARE TERRIFIED BY THE PROSPECT OF PRICE CONTROLS AFTER CLIMBING AT A DOUBLEDIGIT PACE FOR YEARS PHARMACEUTICAL PRICES EDGED UP AT A 11 ANNUAL RATE IN THE PAST THREE MONTHS AND ACTUALLY FELL IN APRIL THE GOVERNMENT SAYS SIXTEEN DRUG COMPANIES HAVE PLEDGED NOT TO INCREASE PRICES ANY FASTER THAN THE CLIMB IN THE OVERALL CONSUMER PRICE INDEX THERE IS ENORMOUS PUBLIC AND POLITICAL SENSITIVITY TO THE PERCEPTION OF THE HIGH COST OF PHARMACEUTICALS SAYS FRED TELLING VICE PRESIDENT FOR PLANNING AND POLICY AT PFIZER INC'S US PHARMACEUTICALS GROUP COLLEGE AND PRIVATESCHOOL TUITION INCREASES CONTINUE TO EXCEED THE OVERALL INFLATION RATE BUT RECENTLY ANNOUNCED INCREASES ARE SMALLER THAN THEY HAVE BEEN IN YEARS TUITION ROOM AND BOARD AT HARVARD UNIVERSITY NEXT YEAR WILL BE 24880 THAT IS STILL A 58 INCREASE BUT IT IS THE SMALLEST RISE IN MORE THAN TWO DECADES IN EACH OF THE THREE PRECEDING YEARS CHARGES ROSE 65 OR MORE AT LEAST ONE INDUSTRY THAT HAS DRIVEN UP THE CONSUMER PRICE INDEX SO FAR THIS YEAR TOBACCO SEEMS CERTAIN TO HELP RESTRAIN IT IN THE FUTURE PRICES OF TOBACCO PRODUCTS HAVE RISEN AT AN 11 ANNUAL RATE IN THE PAST THREE MONTHS THE GOVERNMENT SAYS THE WIDELY NOTED PRICE WAR KICKED OFF BY PHILIP MORRIS COS WON'T ACTUALLY CUT CIGARETTE PRICES UNTIL LATER THIS MONTH THE LABOR DEPARTMENT SAYS THE PRICE OF TOBACCO PRODUCTS ROSE AT AN 81 ANNUAL RATE IN THE PAST THREE MONTHS AND AT AN 11 RATE IN THE PRECEDING THREE MONTHS IN YESTERDAY'S PAGEONE ARTICLE ABOUT INFLATION IT WAS INCORRECTLY STATED THAT THE PRICE ROSE AT AN 11 RATE IN THE PAST THREE MONTHS 9305170013 930517 BUSINESS BRIEF PIRELLI SPA LOSS FOR 1992 IS REPORTED SALES GREW INDEBTEDNESS FELL ITALY'S PIRELLI SPA REPORTED A CONSOLIDATED NET LOSS ATTRIBUTABLE TO SHAREHOLDERS OF 105 BILLION LIRE 701 MILLION FOR 1992 PIRELLI BASED IN MILAN SAID SHAREHOLDER EQUITY ROSE 30 TO 3005 TRILLION LIRE AT THE END OF 1992 FROM 2314 TRILLION LIRE A YEAR EARLIER SALES GREW 13 TO 8252 TRILLION LIRE FROM 8145 TRILLION LIRE IN 1991 AND NET FINANCIAL INDEBTEDNESS FELL 18 TO 2632 TRILLION LIRE FROM 3204 TRILLION LIRE THAT BROUGHT THE NETDEBT TO NETEQUITY RATIO DOWN TO 088 FROM 138 AT THE BEGINNING OF 1992 PIRELLI SAID THE COMPANY EXPECTS TO SEE A FURTHER REDUCTION IN DEBT DURING 1993 OF AROUND 500 BILLION LIRE AND CAPITAL GAINS OF SOME 150 BILLION LIRE FOLLOWING THE SALE OF SOME SUBSIDIARIES AND INVESTMENTS PIRELLI ALSO SAID IT HAS RECLASSIFIED ITS 1991 RESULTS USING THE SAME CONSOLIDATION BASIS AS 1992 FOLLOWING VARIOUS ASSET SALES DURING 1992 THE COMPANY DID NOT PROPOSE A DIVIDEND 9305170012 930517 WORKPLACE EXPATRIATES FIND LONG STINTS ABROAD CAN CLOSE DOORS TO CREDIT AT HOME BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL IMAGINE THE SURPRISE OF VILMA STOSS AN AMERICAN TELEPHONE & TELEGRAPH CO PRODUCT MANAGER IN MADRID WHEN HER APPLICATION FOR AT&T'S NEW UNIVERSAL CARD WAS REJECTED LAST YEAR AFTER SEVEN YEARS IN EUROPE SHE HAD ACQUIRED A GOOD SALARY SAVINGS AND VISA CARDS IN SPAIN AND THE UNITED KINGDOM SHE SAYS BUT HER INTERNATIONAL CREDIT HISTORY DIDN'T CUT ANY ICE WITH THE US BANK THAT ISSUES THE CREDIT CARD FOR AT&T OR WITH THE DOMESTIC CREDITREPORTING FIRMS THAT SUPPLY CONSUMERBORROWING HISTORIES TO LENDERS AND HER US CREDIT HISTORY HAD PRACTICALLY VANISHED LIKE MS STOSS A GROWING NUMBER OF THE ESTIMATED 500000 US PROFESSIONALS ABROAD ARE GETTING A PERSONAL HISTORY LESSON THEY ARE DISCOVERING THEY HAVE LITTLE OR NO CREDIT HISTORY WITH WHICH TO SEEK A LOAN OR EVEN A CREDIT CARD WHEN THEY RETURN JUST BECAUSE YOU DON'T HAVE THIS CREDIT HISTORY THEY MAKE YOUR LIFE HELL ASSERTS MS STOSS MANY US WORKERS ABROAD MANAGE TO ESCAPE SUCH PROBLEMS BECAUSE THEIR FOREIGN STINTS ARE RELATIVELY SHORT TWO TO FOUR YEARS AND THEIR PAPER TRAILS CONTINUE WHILE THEY ARE AWAY AS THEY KEEP PAYING A HOME MORTGAGE OR USING US CREDIT CARDS BUT EXPATRIATES WHO STAY ABROAD FOR LONGER PERIODS OFTEN FACE TROUBLES BECAUSE US CREDITREPORTING AGENCIES NORMALLY PURGE INFORMATION FROM THEIR COMPUTERS AFTER SEVEN OR 10 YEARS THE CREDIT TRAVAILS ARE LIKELY TO SPREAD BECAUSE MORE COMPANIES ARE SENDING YOUNGER EMPLOYEES OVERSEAS ON DEVELOPMENT PROGRAMS SINCE MANY OF THESE EMPLOYEES DIDN'T HAVE MUCH CREDIT TO START WITH LACK OF CREDIT UPON THEIR RETURN IS GOING TO BE MORE AND MORE OF AN ISSUE SAYS CAROLYN GOULD AN EXPATRIATECOMPENSATION CONSULTANT FOR PRICE WATERHOUSE WITHOUT THAT US CREDIT HISTORY RETURNING EXPATRIATES FIND THEY CAN'T GET SIMPLE THINGS LIKE CHECKINGACCOUNT OVERDRAFT PROTECTION DEPARTMENTSTORE CHARGE CARDS OR CREDIT CARDS IN WORSE CASES THEY DON'T QUALIFY FOR AUTO LOANS OR HOME MORTGAGES EVEN THOUGH THEY HAVE HEALTHY INCOMES AND SUBSTANTIAL FINANCIAL ASSETS JEANNE SEGAL WHO SPENT FIVE YEARS IN LONDON WITH AMERICAN EXPRESS CO RETURNED TO THE US EARLIER THIS YEAR AND WAS DENIED A VISA CARD MARKETED BY HER LONGTIME BANK BANK OF NEW YORK ME A HIGHDEPOSIT PERSON TURNED DOWN SHE COMPLAINS IN EFFECT I HAD NO CREDIT HISTORY MS SEGAL WHO NOW WORKS FOR THE WORLD BANK'S INTERNATIONAL FINANCE CORP IN WASHINGTON DC MAKES DO BY USING HER BRITISH VISA CARD AND PAYING IT OFF IN STERLING FROM A UK BANK ACCOUNT SHE HAS TO KEEP OPEN FOR THE PURPOSE AS THE RESULT OF MS STOSS'S DIFFICULTIES AT&T HAS CHANGED THE INFORMATION IT DISPENSES IN TRAINING SESSIONS FOR EMPLOYEES PREPARING FOR OVERSEAS ASSIGNMENTS KEEP A US CREDIT CARD IF YOU'RE NOT A HOMEOWNER ADVISES ERIC THOM OF AT&T'S HUMAN RESOURCES DEPARTMENT SIMILARLY MERRILL LYNCH & CO HAS BEGUN ENCOURAGING ITS EXPATRIATES TO KEEP THEIR US CREDIT CARDS ACTIVE THAT ISN'T ALWAYS POSSIBLE OF COURSE SOMETIMES CARD ISSUERS WILL CLOSE ACCOUNTS BECAUSE PAYMENTS ARE LATEFALLOUT FROM WHAT IS OFTEN SLOW INTERNATIONAL MAIL SERVICE A FEW US BANKS NOTABLY CITIBANK HAVE BEGUN EXPATRIATE BANKING SERVICES THAT SOLVE THIS PROBLEM BY PAYING US BILLS FOR CLIENTS STATIONED OVERSEAS EVEN AN ACTIVE CREDIT CARD ISN'T A GUARANTEE OF SUCCESS WITH SUSPICIOUS LENDERS TO BUY A HOME I WAS STARTING FROM NOWHERE RECALLS SANFORD J KORNBERG WHO RETURNED TO THE US IN 1990 AFTER NEARLY TWO DECADES IN ASIA WHAT MARGINAL CREDIT I DID HAVE DIDN'T GO A LONG WAY MR KORNBERG A SENIOR VICE PRESIDENT FOR ADVERTISING AGENCY MCCANNERICKSON INC SAYS THAT IRRESPECTIVE OF WHO YOU ARE WHAT POSITION YOU HELD OVERSEAS AND HOW MUCH MONEY YOU HAVE TO POTENTIAL LENDERS YOU'RE APPEARING OUT OF THE WOODWORK PRECISELY MOST CREDIT GRANTED IN THE US IS BASED ON REPORTS GENERATED BY THREE BIG CREDIT BUREAUS THAT KEEP HISTORIES OF CONSUMERS' APPLICATIONS FOR LOANS AND CREDIT CARDS AND THEIR PAYMENT PATTERNS THE BUREAUS RECEIVE THAT INFORMATION FROM THEIR SUBSCRIBERS BANKS RETAIL CHAINS MORTGAGE LENDERS AND CREDITCARD ISSUERS AND ISSUE CONSUMERCREDIT REPORTS IN RESPONSE TO AUTHORIZED INQUIRIES FROM LENDERS EMPLOYERS LANDLORDS AND OTHERS CREDIT REPORTS DON'T INCLUDE INCOME ASSETS OR OVERSEAS CREDIT ACTIVITIES FOREIGN CREDIT REPORTING OFTEN IS SIMPLY NOT PREDICTIVE OF FUTURE REPAYMENT PATTERNS EXPLAINS MARTY ABRAMS DIRECTOR OF CONSUMER POLICY FOR TRW INFORMATION SYSTEMS & SERVICES ONE OF THE US AGENCIES SO THE FOREIGN DATA AREN'T USED BUT INSUFFICIENT US CREDIT CAN BE SEEN AS A NEGATIVE BECAUSE IT DOESN'T REVEAL A PERSON'S WILLINGNESS OR CAPACITY TO PAY DEBT HE SAYS IT'S A CATCH22 BECAUSE US LENDERS RELY HEAVILY ON THESE CREDIT REPORTS IF WE CAN'T LEARN ENOUGH GOOD STUFF ABOUT YOU FROM THE CREDITBUREAU REPORT AND THE APPLICATION WE DECLINE TO ISSUE A CREDIT CARD SAYS SCOTT MARKS HEAD OF FIRST CHICAGO CORP'S BANKCARD GROUP WITH NINE MILLION VISA AND MASTERCARD ACCOUNTS TO TRACK FIRST CHICAGO ISN'T ABLE TO HANDLE EXCEPTIONS SUCH AS EXPATRIATES ON A CASEBYCASE BASIS HE SAYS DITTO FOR DAYTON HUDSON CORP THE MINNEAPOLISBASED RETAILER WHICH USES CREDIT REPORTS AS THE DOMINANT CRITERIA FOR ISSUING ITS DAYTON'S HUDSON'S AND MARSHALL FIELD'S CHARGE CARDS SO WHAT IS A WELLTODO BUT CREDITPOOR RETURNEE TO DO ONE APPROACH IS TO BUILD A NEW CREDIT HISTORY FROM SCRATCH JUST AS COLLEGE GRADUATES DO TRW'S MR ABRAMS SUGGESTS THAT THE RETURNEE APPLY FOR A GASCOMPANY OR A DEPARTMENTSTORE CHARGE CARD FIRST OR TRY TO GET A SOCALLED SECURED CREDIT CARD HE SAYS THAT IS A VISA OR MASTERCARD BACKED BY THE CARD HOLDER'S SAVINGS ACCOUNT AN AMERICAN EXPRESS CARD CAN HELP IN THE SHORT TERM AN EXPATRIATE WHO HAS ONE CAN EASILY TRANSFER HIS OR HER LOCALCURRENCY CARD INTO A US DOLLAR CARD WITHOUT HAVING TO GO THROUGH A CREDIT CHECK AND ONCE THE CARD IS IN USE IN THE US ITS ACTIVITY SHOULD SHOW UP ON THE HOLDER'S CREDIT REPORT OTHER SPECIALISTS THOUGH SUGGEST CUTTING THROUGH THE BUREAUCRACY AND BUILDING A PERSONAL RELATIONSHIP WITH A LENDER WHEN YOU REPATRIATE WRITE DIRECTLY TO THE BANK PRESIDENT COUNSELS LOUISE GUIDO HEAD OF LIVING ABROAD PUBLISHING INC OF PRINCETON NJ DON'T DEAL WITH CUSTOMERSERVICE CLERKS PEOPLE WHO HAVE NEVER GONE OUT OF STATE WHICHEVER APPROACH IS USED RETURNEES SHOULD BE PREPARED TO SUPPLY DOCUMENTS AMONG THOSE DEEMED USEFUL EXPERTS SAY ARE LETTERS FROM EMPLOYERS LETTERS OF INTRODUCTION FROM OVERSEAS BANKERS PERSONAL FINANCIAL STATEMENTS TAX RETURNS BROKERAGE STATEMENTS AND FOREIGN CREDITCARD BILLING DOCUMENTS MCCANNERICKSON'S MR KORNBERG HAD HEARD OF THE CREDIT PROBLEMS ENCOUNTERED BY EXPATRIATE FRIENDS WHEN THEY RETURNED TO THE STATES SO HE HAD SECURITY PACIFIC BANK HIS HONG KONG DOLLAR VISA CARD ISSUER SEND HIS CREDIT INFORMATION TO SECURITY PACIFIC IN THE US HIS HONG KONG DOLLAR AMERICAN EXPRESS CARD WAS SWAPPED FOR A US DOLLAR CARD MR KORNBERG SAID HE HAD HIS EMPLOYER VOUCH FOR HIM IN WRITING HE PRODUCED DOCUMENTATION ON A MORTGAGE HE HELD ON SOME LAND IN NORTH CAROLINA AND ON SECURITIES HE HELD WITH THIS SHEAF OF EVIDENCE HE PERSUADED A GREENWICH CONN SAVINGS AND LOAN ASSOCIATION TO EXTEND A HOME LOAN AT&T'S MS STOSS HADN'T ANTICIPATED THE PROBLEMS WHEN I LEFT THE US I WAS STILL A KID SAYS THE 32YEAROLD I DIDN'T SET THINGS UP MAKE A PAPER TRAIL WHAT SHE DID DO ON RETURNING TO THE US WAS REAPPLY FOR HER COMPANY'S CREDIT CARD AND GET REJECTED AGAIN SHE WROTE TO AT&T AND GOT BASICALLY NOWHERE SHE SAYS SO WHEN SHE APPLIED A THIRD TIME SHE INCLUDED A LETTER I DON'T WANT A GOLD CARD SHE WROTE JUST GIVE ME A CARD WITH A 100 LIMIT OR A 10 LIMIT BY THEN IT WAS A RUNNING JOKE IN MY FAMILY THAT THE NEIGHBOR'S KID JUST OUT OF COLLEGE COULD GET AN AT&T CARD AND I COULDN'T SHE SAYS EVENTUALLY AT&T GAVE HER A GOLD CARD WITH AN 8000 CREDIT LIMIT I REALLY DON'T KNOW TO THIS DAY WHY THEY APPROVED IT SAYS MS STOSS GETTING A MORTGAGE WAS SIMPLER SHE SAYS BECAUSE SHE HAD SUFFICIENT SAVINGS 9305170011 930517 INTERNATIONAL IRAN ENACTS FAMILY SIZE RULE NICOSIA CYPRUS THE IRANIAN PARLIAMENT RATIFIED A BILL SUNDAY AIMED AT ENCOURAGING COUPLES TO HAVE NO MORE THAN THREE CHILDREN THE IRANIAN NEWS AGENCY SAID THE LEGISLATION GRANTS SPECIAL GOVERNMENT BENEFITS ONLY TO THE FIRST THREE CHILDREN THE RULE TAKES EFFECT IN A YEAR IRAN RULED BY CLERGY SINCE THE 1979 ISLAMIC REVOLUTION HAS A POPULATION OF ABOUT 52 MILLION IT IS OFTEN PRAISED INTERNATIONALLY FOR ACHIEVEMENTS IN FAMILY PLANNING AND BIRTH CONTROL 9305170010 930517 JIRI LOBKOWICZ FINDS LIFE AS CZECH PRINCE ISN'T A FAIRY TALE SOME SAY PLAN TO RESTORE LAND TO PRECOMMUNISM OWNERS IS HOLDING BACK PROGRESS BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL MELNIK CZECH REPUBLIC THREE AND A HALF YEARS AGO JIRI LOBKOWICZ WAS HAPPILY LIVING AN ORDINARY LIFE AS A CHASE MANHATTAN BANKER IN MONTE CARLO IN ALL HIS 33 YEARS HE HAD NEVER SET FOOT IN HIS NATIVE LAND TODAY HE IS A PRINCE SO IS HIS DISTANT COUSIN WILLIAM A FORMER REALESTATE MAN FROM BOSTON SO ARE THE HEIRS TO CASTLES OWNED BY TWO OTHER BRANCHES OF THE FAMILY THEY'VE REGAINED THEIR PLACE IN EUROPEAN ARISTOCRACY THANKS TO THE FALL OF COMMUNISM AND TO THE CZECH PARLIAMENT IN A FAR REACHING THOUGH LITTLENOTICED ACCOMPANIMENT TO MASS PRIVATIZATION THE CZECHS ARE GIVING LAND AND PROPERTY BACK TO THEIR OWNERS OF 1948 BY RECLAIMING ITS 16 CASTLES ITS ANTIQUES AND UNTOLD ACRES OF LAND THE ANCIENT BOHEMIAN FAMILY OF LOBKOWICZ WILL ONCE AGAIN BE ONE OF THE LARGEST PROPERTY OWNERS IN THE LAND JIRI WHICH IS THE CZECH EQUIALENT OF GEORGE HIS CHILDHOOD NAME IN SWITZERLAND HAS ALREADY GOTTEN BACK MOST OF HIS FATHER'S PROPERTY FOUR CASTLES A PRAGUE CITY HOUSE AND RESTAURANT VINEYARDS CATTLE PIGS TWO PUBS FARMLAND AND THOUSANDS OF BAROQUE PAINTINGS AND ARTIFACTS FOR THE FIRST FIVE MINUTES IT WAS A FAIRY TALE SAYS MR LOBKOWICZ WHO AT 36 HAS ACQUIRED A REGAL IF SOMEWHAT PORTLY BEARING GIVING MEDIEVAL PRINCES BACK THEIR LAND MAY NOT SEEM LIKE PROGRESS BUT ALONGSIDE ESTABLISHING STOCK MARKETS FOR NEWLY PRIVATE STATE ENTERPRISES COUNTRIES THROUGHOUT THE FORMER COMMUNIST WORLD ARE ENGAGED IN A HUGE EFFORT TO CREATE A PRIVATE PROPERTY MARKET MILLIONS OF STATEOWNED HOUSES FLATS BUILDINGS AND PARCELS OF LAND ARE BEING REDISTRIBUTED THE MORE PEOPLE WHO OWN PROPERTY THE MORE PEOPLE WHO HAVE A STAKE IN A FREE MARKET ECONOMY SAYS THE BRITISH MANAGER OF AN INVESTMENT FUND IN PRAGUE SAYS RON FREEMAN FIRST VICE PRESIDENT OF THE LONDONBASED EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT MARXISM IS KISSED GOODBYE AT LEAST THAT IS THE THEORY BUT LIKE SO MANY OTHER THINGS IN THE FORMER COMMUNIST LANDS PRIVATEPROPERTY PROGRAMS HAVE THEIR SNAGS SOME PEOPLE THINK THAT THEY ARE HOLDING BACK ECONOMIC PROSPERITY NOT ADVANCING IT THE MOSTCOMPLICATING FACTOR IS THE WIDESPREAD USE OF RESTITUTION UNDER THIS NOTION WHICH HAS BENEFITED THE LOBKOWICZ CLAN ANYONE WHO LOST HIS PROPERTY TO A COMMUNIST REGIME CAN CLAIM IT BACK PROPERTY RIGHTS ARE BEING ESTABLISHED NOT BY LOOKING AHEAD TO THE BRAVE NEW WORLD OF CAPITALISM BUT BY GAZING BACKWARD IT IS VERY POLITICALLY CHARGED SAYS MICHAEL HELLER A CONSULTANT TO THE WORLD BANK IN WASHINGTON IT GETS YOU INTO THE FINE DETAILS OF DECIDING EQUITY IN A SYSTEM WHERE EVERYONE WAS TREATED UNFAIRLY RESTITUTION HAS BEEN EMBRACED MOST EAGERLY BY THE CZECHS WHO ARE SO ENAMORED OF GETTING SOMETHING FOR FREE THAT CLAIM DISPUTES MAKE UP A QUARTER OF PRAGUE'S CIVIL COURT CASES FOR THE LAWYERS IT'S BEEN VERY PROFITABLE SAYS LUDEK SEKYRA A LOCAL ATTORNEY PROCTER & GAMBLE CO FOR INSTANCE IS CURRENTLY IN COURT OVER ITS 20 MILLION PURCHASE OF THE RAKONA DETERGENT FACTORY FROM THE GOVERNMENT IN 1991 HEIRS OF THE OTTA FAMILY CLAIM RAKONA IS THEIRS AND IT WAS SOLD ILLEGALLY AS ECONOMISTS WE HAD DOUBTS ABOUT RESTITUTION SAYS VLADIMIR DLOUHY THE CZECH MINISTER OF INDUSTRY AND TRADE THE PARLIAMENT OVERRODE US ONE OF THE BIG BENEFICIARIES IS VACLAV HAVEL THE CZECH PRESIDENT AND MORAL CONSCIENCE BEHIND THE 1989 REVOLUTION TOGETHER WITH HIS BROTHER HE GOT BACK A MAJOR OFFICE BUILDING OFF WENCESLAS SQUARE WHICH REALESTATE EXPERTS SAY IS WORTH MILLIONS HIS SPOKESMAN SAYS THERE WAS NO POLICY REASON FOR RESTITUTION IT IS JUST A TYPE OF PRIVATIZATION OFFICIALLY THE CZECH PROGRAM IS FINISHED AS ALL CLAIMS HAD TO BE FILED BY THE END OF LAST YEAR BUT AFTER DECIDING INITIALLY THAT IT WOULD APPLY ONLY TO PROPERTY TAKEN AFTER FEB 25 1948 THE PARLIAMENT IS HAVING SECOND THOUGHTS THE CATHOLIC CHURCH FOR ONE IS PRESSURING LAWMAKERS TO GIVE IT BACK SOME 294000 HECTARES WORTH BY SOME ACCOUNTS 23 BILLION SURVIVING JEWS WHO LOST LAND AND PROPERTY AFTER GERMANY TOOK CZECH LANDS IN 1938 BELIEVE THEY TOO SHOULD BE COMPENSATED IF THE JEWS GET SOMETHING WHY NOT ALSO THE SUDETEN GERMANS WHO WERE EXPELLED AND ROBBED OF THEIR BELONGINGS IN 1945 MANY WERE NAZI COLLABORATORS BUT WHAT ABOUT THOSE WHO WEREN'T CHANGING THE RULES NOW WILL BE THE BEGINNING OF ECONOMIC PROBLEMS FOR OUR COUNTRY FEARS PETR PESEK HEAD OF THE LEGAL DEPARTMENT AT THE CZECH NATIONAL PROPERTY FUND IT WOULD RAISE NEW OWNERSHIP QUESTIONS THAT COULD HOGTIE SALE OF OTHER STATE ASSETS MR PESEK SUGGESTS THAT IF THE GOVERNMENT IS SO KEEN ON LIVING IN THE PAST WHY NOT RESTORE LANDS TO OWNERS IN 1620 THE LAST TIME BOHEMIA WAS AN INDEPENDENT KINGDOM IT WAS BEFORE THEN IN 1525 THAT THE LOBKOWICZ FAMILY FIRST OWNED MELNIK CASTLE A BIT NORTH OF PRAGUE WE ARE A REAL CZECH FAMILY SAYS JIRI LOBKOWICZ DRIVING PAST SNOWCOVERED FIELDS A LOT OF ARISTOCRATIC FAMILIES LIVING HERE WERE OF AUSTRIAN OR GERMAN ORIGIN WE ARE 100 CZECH MR LOBKOWICZ HIMSELF WAS BORN IN SWITZERLAND IN 1956 HIS FATHER LEFT MELNIK POPULATION 15000 WITH LITTLE MORE THAN THE PROVERBIAL SHIRT ON HIS BACK AND REBUILT HIS LIFE IN ZURICH MY FATHER WAS ALWAYS TALKING BOHEMIA BOHEMIA' SAYS MR LOBKOWICZ IN 1989 INSPIRED BY EAST GERMAN PLEAS FOR ASYLUM AT THE WEST GERMAN EMBASSY IN PRAGUE STILL CALLED THE LOBKOWICZ PALACE HE AND HIS WIFE BETTINA DECIDED TO MOVE EAST THEY STUDIED CZECH FOR FOUR MONTHS LIKE A LOT OF WESTERNERS DRAWN TO PRAGUE MR LOBKOWICZ WENT TO WORK FOR THE GOVERNMENT SELLING ADVICE ON HOW TO CREATE A MARKET ECONOMY RESTITUTION IN 1991 OPENED UP NEW AVENUES WE ARE THE BIGGEST RESTITUTION CASE IN THE CZECH REPUBLIC MR LOBKOWICZ SAYS BUT WHAT SEEMED STRAIGHTFORWARD WAS FRAUGHT WITH TECHNICALITIES UNDER THE LAW A CLAIMANT WHO CAN BE AN HEIR WHO HAS ESTABLISHED RESIDENCY MUST SIMPLY PRESENT HIS CLAIM TO THE CURRENT OWNER USUALLY A STATE ENTITY WHICH IS SUPPOSED TO GIVE THE PROPERTY BACK BUT FINDING OUT WHAT YOU OWN AND WHAT STATE GROUP OWNS IT NOW IS NO EASY TRICK MANY ORGANIZATIONS RESISTED MR LOBKOWICZ'S EFFORTS FOR 50 YEARS HE SAYS YOU HAD ORGANIZATIONS DESTROYING THINGS SHIFTING THEM BETWEEN ONE ANOTHER OUR CASTLES WERE ALL EMPTY THINGS WERE STORED IN PIGSTYS STANDING ON THE RIDGE AT THE FOOT OF MELNIK CASTLE MR LOBKOWICZ POINTS TO A RED TILE ROOF IN THE DISTANCE THAT'S MY OTHER CASTLE HORIN HE SAYS THOSE OVER THERE ARE MY VINEYARDS THOSE ARE MY FORESTS THAT'S THE WINE FACTORY AT THE BANK OF THE ELBE WHAT APPEARS TO BE A WINDFALL THOUGH IS MORE LIKE A MONEY PIT AT THE FACTORY MRS LOBKOWICZ WHO USED TO WORK AT CREDIT SUISSE IS TRYING TO FIGURE OUT HOW TO MAKE A PROFIT GRAPEVINES SIT LIFELESS AFTER 40 YEARS OF CARE UNDER CENTRAL PLANNING THE WINERY ONCE THE LARGEST IN CZECHOSLOVAKIA WITH A PINK SPARKLING WINE CALLED CHATEAU MELNIK WAS REBUILT BY THE COMMUNISTS 12 YEARS AGO AND MADE TO HANDLE THREE TIMES THE GRAPES PRODUCED ENERGY COSTS ARE ENORMOUS A COUPLE OF MIDDLEAGED WOMEN WASH BOTTLES BY HAND MR LOBKOWICZ HOPES TO TURN MELNIK INTO A TOURIST ATTRACTION WITH RESTAURANTS BOUTIQUES MUSIC A CONFERENCE CENTER TO SELL MORE WINE THE CELLAR MAY BE REINSTATED IN THE 11THCENTURY VAULTS BENEATH THE CASTLE MR LOBKOWICZ SAYS HE HAS PUT UP WITH RECALCITRANT BUREAUCRATS BADMOUTHING BY JEALOUS CZECHS AND A BANKING SYSTEM THAT ONLY EXTENDS SHORTTERM CREDIT YOU HAVE TO BE CRAZY TO COME TO THIS COUNTRY HE SAYS BUT OUR FAMILY HAS BEEN HERE 700 YEARS WE'VE BUILT PALACES CHURCHES NOW WE ARE BACK TRYING TO CREATE SOMETHING FOR ME IT'S A DISCOVERY OF EVERYTHING I'M HERE FOR THE REST OF MY LIFE I HAVE TO CATCH UP WITH MY FAMILY HISTORY 9305170009 930517 BUSINESS BRIEF PETROFINA SA HOLDERS ARE TOLD 1993 PROFIT SHOULD RISE FROM LAST YEAR BELGIAN OIL AND GAS COMPANY PETROFINA SA SAID IN BRUSSELS THAT A REBOUND IN REFINING PROFIT MARGINS STABLE CRUDEOIL PRICES AND HIGHER NATURALGAS PRICES IN THE US SHOULD HELP BOOST PROFIT IN 1993 FROM 1992'S DEPRESSED LEVELS IN AN ADDRESS TO SHAREHOLDERS PETROFINA CHIEF EXECUTIVE OFFICER FRANCIS CORNELIS SAID THOSE FACTORS SHOULD HELP US TO PRODUCE BETTER RESULTS IN 1993 THAN IN 1992 AND BEGIN OUR RECOVERY DESPITE THE SLUGGISHNESS OF THE ECONOMY MR CORNELIS SAID HOWEVER THAT PROFIT DURING THE FIRST HALF OF 1993 WILL BE ROUGHLY IN LINE WITH 1992'S FIRST HALF HIT BY THE LOW DOLLAR WEAK CRUDEOIL PRICES AND THE NARROWEST REFINING MARGINS IN 10 YEARS PETROFINA'S PROFIT SANK 72 TO 46 BILLION BELGIAN FRANCS 1385 MILLION IN 1992 THE COMPANY HALVED ITS DIVIDEND TO 211 FRANCS A SHARE 9305170008 930517 BUSINESS BRIEF PECHINEY SA FIRSTPERIOD GROUP REVENUE FELL 10 FROM A YEAR EARLIER FRENCH ALUMINUM AND PACKAGING GROUP PECHINEY SA REPORTED FIRSTQUARTER GROUP CONSOLIDATED REVENUE FELL 10 TO 1475 BILLION FRANCS 271 BILLION FROM 1643 BILLION FRANCS A YEAR EARLIER THE GROUP'S PACKAGING AND TURBINECOMPONENTS SUBSIDIARY PECHINEY INTERNATIONAL SA SAID SEPARATELY THAT ITS REVENUE FELL 9 TO 78 BILLION FRANCS FROM 857 BILLION FRANCS DOLLAR SALES WERE CONVERTED INTO FRANCS AT THE RATE OF 555 FRANCS TO A DOLLAR COMPARED WITH 551 FRANCS A YEAR EARLIER THE COMPARATIVE FIGURES FOR LAST YEAR WERE RECALCULATED TO TAKE INTO ACCOUNT CHANGES IN CONSOLIDATION PECHINEY SAID IN PARIS THAT THE TREND IN FIRSTQUARTER FIGURES WAS CONFIRMED BY THE INDICATIONS FROM APRIL SALES THE DECLINES IN VOLUME AND PRICE WERE FURTHER AGGRAVATED BY UNFAVORABLE EXCHANGE RATES 9305170007 930517 MUTUAL FUNDS HOT STOCK FUND COOLS DOWN TRIES OVERHAUL BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL ROBERTSON STEPHENS EMERGING GROWTH FUND HAS STUMBLED BEFORE IN ITS SEARCH FOR SMALL FASTGROWING STOCKS AND THE FUND IS TAKING ANOTHER DIVE THIS YEAR BUT WHAT'S REALLY WORRYING INVESTORS IS THE FEAR THAT THIS ONCEHOT MUTUAL FUND MAY NOT BOUNCE BACK THE WAY IT HAS IN THE PAST WITH THE FUND DOWN A STEEP 148 THIS YEAR PORTFOLIO MANAGER ROBERT CZEPIEL IS SENDING A LETTER TO SHAREHOLDERS ANNOUNCING IMPORTANT CHANGES IN HIS INVESTMENT STRATEGY THE 200 MILLION FUND IS SELLING SOME OF THE TINY STOCKS THAT USED TO BE ITS STRONG SUIT AND IS INVESTING MORE IN MEDIUMSIZE STOCKS TO REDUCE SHAREPRICE SWINGS AND INSTEAD OF FOCUSING NARROWLY ON TECHNOLOGY AND HEALTH WHERE MR CZEPIEL HAS EXCELLED THE FUND WILL START DABBLING IN ENERGY GOLD AND FINANCIAL SERVICES SECTORS THAT HAVE DONE WELL OF LATE FAR FROM BEING PLEASED SOME OF MR CZEPIEL'S FORMER FANS ARE HORRIFIED WHEN SOMEONE MAKES A RADICAL CHANGE IN INVESTMENT STYLE IN RESPONSE TO POOR PERFORMANCE IT'S ALMOST ALWAYS THE WRONG THING AT THE WRONG TIME SAYS KURT BROUWER PRESIDENT OF BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENT ADVISORY FIRM SPECIALIZING IN MUTUAL FUNDS UPON LEARNING OF THE CHANGES THIS MONTH FROM MR CZEPIEL MR BROUWER SAYS HE REDEEMED ALL 75 MILLION OF HIS CLIENTS' MONEY HELD IN THE FUND THEY DON'T HAVE ANY PARTICULAR EXPERTISE IN ENERGY OR GOLD OR FINANCIAL SERVICES THERE'S NO DOUBT THAT OUR RECENT PERFORMANCE IS NOT AS GOOD AS THE OTHER EMERGING GROWTH FUNDS SAYS G RANDALL HECHT PRESIDENT OF THE ROBERTSON STEPHENS FAMILY OF FUNDS BUT MR HECHT EXPECTS THE FUND TO BOUNCE BACK AND POINTS TO MR CZEPIEL'S STRONG LONGTERM RECORD SINCE 1981 VARIOUS INVESTMENTS THAT MR CZEPIEL HAS MANAGED HAVE EARNED RETURNS OF 168 A YEAR ROBERTSON STEPHENS CALCULATES WELL AHEAD OF THE 123 RETURN OF THE S&P 500 IN THAT PERIOD MR CZEPIEL DECLINED TO BE INTERVIEWED FOR THIS ARTICLE THE CHANGES AT THE FUND ARE MERELY EVOLUTIONARY MR HECHT SAYS FOR INSTANCE THE FUND HAS VENTURED INTO LARGER STOCKS BEFORE SUCH AS CELLULAR MOBILEPHONE COMPANIES MOREOVER THE FUND BOUGHT AN INITIAL PUBLIC OFFERING THIS WEEK PROOF THAT IT STILL INVESTS IN SMALL STOCKS MR HECHT SAYS BUT MR HECHT ACKNOWLEDGES WE'RE SELLING THE LEAST LIQUID STOCKS OVER TIME AND EVOLVING INTO THE MORE LIQUID MEDIUMSIZE STOCKS AND MOST OF THE FUND'S RECENT PURCHASES HAVE BEEN IN NEW AREAS SUCH AS ENERGY AND FINANCIAL SERVICES ROBERTSON STEPHENS EMERGING GROWTH STREAKED INTO THE INVESTMENT STRATOSPHERE AFTER IT OPENED IN NOVEMBER 1987 SHOWING A 3683 ANNUAL RETURN THROUGH THE END OF 1991 INCLUDING REINVESTED DIVIDENDS ACCORDING TO LIPPER ANALYTICAL SERVICES THAT RETURN LAID WASTE TO THE ABOVEAVERAGE 1973 ANNUAL RETURN OF THE STANDARD & POOR'S 500 STOCK INDEX IN THE PERIOD SHAREHOLDERS POURED IN BUT LAST YEAR MR CZEPIEL'S FUND SUSTAINED A 255 LOSS AND THIS YEAR SEVERAL OF ITS BIG HOLDINGS HAVE BEEN SLAMMED BY EARNINGS DISAPPOINTMENTS SYNERGEN WAS MR CZEPIEL'S BIGGEST HOLDING IN FEBRUARY WHEN THE BIOTECHNOLOGY STOCK PLUNGED IN PRICE ON TEST RESULTS FOR ITS DRUG ANTRIL FOUR OTHER BIG HOLDINGS ALSO WENT INTO THE TANK IN THE FIRST QUARTER WHAT WENT WRONG FOR ONE THING AS MR HECHT QUICKLY POINTS OUT THIS HAS BEEN A TOUGH PERIOD FOR SMALL COMPANIES WITH RAPIDLY GROWING EARNINGS A CATEGORY WHERE STOCK PRICES FREQUENTLY SWING SHARPLY MR CZEPIEL HAS RECOVERED FROM SIMILARLY STEEP DECLINES IN THE PAST INCLUDING A ROUGH 1992 FIRST HALF BUT THIS TIME THE REASONS FOR THE POOR PERFORMANCE APPEAR TO GO DEEPER MR CZEPIEL RECENTLY TOLD MR BROUWER THAT THE FUND'S RAPID GROWTH WAS MAKING IT HARD TO TRADE QUICKLY IN AND OUT OF SMALL RELATIVELY ILLIQUID STOCKS MR BROUWER SAYS THE FUND GREW TO 278 MILLION IN ASSETS AT THE END OF 1992 UP FROM 142 MILLION AT THE END OF 1991 AND ONLY 23 MILLION AT THE END OF 1990 ACCORDING TO THE LATEST ISSUE OF NOLOAD FUND ANALYST A FUND INDUSTRY NEWSLETTER MR CZEPIEL BELIEVES HE HAS RELIED TOO HEAVILY ON OTHER ANALYSTS' RESEARCH HE RECENTLY HIRED A NEW ANALYST FOR THE FUND BRINGING THE NUMBER OF INVESTMENT PROFESSIONALS TO THREE BUT SOME INVESTORS WORRY THAT MR CZEPIEL'S CHANGES WILL TAKE HIM INTO STOCKS THAT ARE BEYOND HIS EXPERTISE ACCORDING TO MR BROUWER MR CZEPIEL IS PLANNING TO SELL HOLDINGS OF TINY COMPANIES WITH STOCKMARKET VALUES TOTALING LESS THAN 200 MILLION APIECE FROM HERE ON THE FUND WILL MOSTLY BUY STOCKS OF COMPANIES BETWEEN 500 MILLION AND 2 BILLION IN THE PAST IT BOUGHT STOCKS SMALLER THAN 500 MILLION NOLOAD FUND ANALYST IS ADVISING SUBSCRIBERS TO SELL THE FUND MANY OTHER FUND SHAREHOLDERS HAD ALREADY ACTED THE FUND'S ASSETS HAVE SHRUNK TO 200 MILLION FROM 278 MILLION AT THE END OF 1992 PARTLY DUE TO A SHRINKING PORTFOLIO BUT ALSO DUE TO INVESTORS ASKING FOR THEIR MONEY BACK THESE TRIBULATIONS COME TO A FUND MANAGER WHOM ACQUAINTANCES INVARIABLY DESCRIBED AS INTELLIGENT AND GENTLEMANLY MR CZEPIEL IS A THIN 55YEAROLD WHO MANAGED MONEY AT INSURER CIGNA BEFORE 1984 WHEN HE JOINED ROBERTSON STEPHENS & CO A SAN FRANCISCO BROKER AND UNDERWRITER SPECIALIZING IN SMALL GROWING COMPANIES MR CZEPIEL WORKS IN AVON CONN AND IS AN AVID BOATER HIS BUSINESS CARD INCLUDES THE TELEPHONE NUMBER FOR HIS BOAT MR HECHT EXPRESSES CONFIDENCE IN MR CZEPIEL AND NOTES THAT EMPLOYEES OF THE PARENT COMPANY HAVE 11 MILLION INVESTED IN THE FUND MR CZEPIEL AND HIS FAMILY HAVE 14 MILLION IN THE FUND AND MR HECHT HAS 290000 ACCORDING TO MR HECHT THE FUND'S THREE TOP HOLDINGS AS OF APRIL 30 WERE COR THERAPEUTICS INC A BIOTECH FIRM GENERAL NUTRITION INC A CHAIN OF VITAMIN STORES AND PERRIGO CO A SUPPLIER OF PRIVATELABEL GOODS INCLUDING OVERTHECOUNTER PHARMACEUTICALS OTHER LARGE HOLDINGS INCLUDE POLICY MANAGEMENT SYSTEMS CORP INSURANCE SOFTWARE AND SERVICES CENTURY TELEPHONE ENTERPRISES EZCORP PAWN SHOPS BAROID CORP OIL AND GAS SERVICES PERSEPTIVE BIOSYSTEMS CIRRUS LOGIC INC AND BROADWAY & SEYMOUR FINANCIAL SERVICES INFORMATION TECHNOLOGY SOME FUND ANALYSTS WONDER IF MR CZEPIEL RELIED TOO MUCH ON RESEARCH FROM ROBERTSON STEPHENS WHICH UNDERWRITES SMALL FASTGROWING STOCKS LIKE THOSE THE FUND BUYS FUNDS CANNOT LEGALLY BUY INITIAL PUBLIC OFFERINGS DIRECTLY FROM AFFILIATED BROKERAGE FIRMS BUT THEY CAN BUY A LIMITED AMOUNT OF THE SAME DEALS FROM OTHER UNAFFILIATED UNDERWRITERS BUT HAD MR CZEPIEL RESTRICTED HIS BUYING TO ROBERTSON STEPHENS DEALS HE MIGHT HAVE IMPROVED HIS PERFORMANCE IN THE 15 MONTHS FROM DEC 31 1991 THROUGH MARCH 31 1993 THE INITIAL PUBLIC OFFERINGS IN WHICH ROBERTSON STEPHENS WAS LEAD OR COMANAGER TURNED IN AN AVERAGE GAIN OF 1961 ACCORDING TO SECURITIES DATA CO WHICH TRACKS SUCH DEALS IN ANY CASE MR CZEPIEL USES SOURCES ON WALL STREET THAT GO FAR BEYOND ROBERTSON STEPHENS MR HECHT SAYS EVEN SOME OF MR CZEPIEL'S ADMIRERS SAY THEY AREN'T SURE THE FUND'S NEW STRATEGY IS A GOOD IDEA IN MR BROUWER'S VIEW THE PROBLEM BEGAN WITH A VERY DIFFICULT MARKET AND FOR WHATEVER REASON THEY BLINKED 9305170006 930517 LYNTON TO REPORT NET EXCEEDED 100000 IN FISCAL 2ND PERIOD MORRISTOWN NJ LYNTON GROUP INC SAID IT EXPECTS TO POST NET INCOME OF MORE THAN 100000 FOR THE SECOND QUARTER ENDED MARCH 31 REVERSING 10 CONSECUTIVE QUARTERS OF LOSSES LYNTON CHIEF FINANCIAL OFFICER BOB HAGAN SAID THE QUARTER'S RESULTS REFLECT ECONOMIC RECOVERY IN THE US AND UK THE COMPANY'S MAJOR MARKETS AND THE BENEFITS OF A COSTCUTTING PROGRAM IMPLEMENTED LAST YEAR LYNTON CHARTERS MANAGES AND BROKERS SALES OF CORPORATE JETS AND HELICOPTERS WITH THE NUMBERS WE'RE PROJECTING WE EXPECT TO BREAK EVEN FOR THE SIX MONTHS AND FOR THE YEAR WE'RE ON TARGET TO AT LEAST BREAK EVEN AND ARE HOPEFUL OF A PROFIT OF 300000 TO 500000 MR HAGAN SAID LYNTON'S TURNAROUND BEGAN AT THE END OF THE FIRST QUARTER WHEN THE COMPANY REPORTED LOSSES SHRANK SHARPLY FOR THE SECOND QUARTER MR HAGAN SAID THE COMPANY WILL REPORT NET OF 100000 TO 120000 COMPARED WITH A YEAREARLIER LOSS OF 637000 REVENUE FOR WAS 63 MILLION A 34 INCREASE FROM 47 MILLION THE COMPANY THE OFFSPRING OF A 1989 MERGER BETWEEN THE US CONCERN DECAIR CORP AND LONDONBASED LYNTON GROUP LTD IN 1990 MADE TWO MAJOR US AND EUROPEAN ACQUISITIONS IMMEDIATELY AFTER ITS FORTUNES BEGAN TO FALL THE COMPANY BECAME HIGHLY LEVERAGED WITH 163 MILLION OF DEBT AND THE RECESSION ERODED BUSINESS PARTICULARLY IN THE UK BY MID1992 THE COMPANY BEGAN TO NOTICE AN ECONOMIC UPSWING PARTICULARLY IN THE UK TO CAPITALIZE ON THE RECOVERY LYNTON STREAMLINED ITS CORPORATE STAFF IT ALSO FOUND A SINGLE INSURER FOR ALL ITS WORLDWIDE AIRCRAFT TRIMMING 150000 FROM ANNUAL EXPENSES IN ALL THE MEASURES WILL SAVE LYNTON 1 MILLION ANNUALLY THE RECESSION DAMPED SALES OF USED AND NEW AIRCRAFT BUT THIS QUARTER THE COMPANY HAS SEEN A SHARP INCREASE IN SALES SELLING SEVEN AIRCRAFT COMPARED WITH ONE IN THE YEAREARLIER QUARTER THE ECONOMIC RECOVERY ALSO HAS MEANT THAT AIRCRAFT OWNERS ARE USING THEIR PLANES MORE OFTEN CONSEQUENTLY BOOSTING DEMAND FOR LYNTON'S MAINTENANCE BUSINESS THE COMPANY IS SEEING DRAMATICALLY GREATER DEMAND FOR ITS CHARTER SERVICES ESPECIALLY IN THE UK WE'RE CAUTIOUSLY OPTIMISTIC THAT THE TRENDS WILL CONTINUE MR HAGAN SAID 9305170005 930517 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ASTRO TANKERS LTD INITIAL FIVE MILLION COMMON SHARES VIA LEHMAN BROTHERS AUDIO/VIDEO AFFILIATES INC TWO MILLION SHARES 13 MILLION OFFERED BY THE COMPANY VIA PRUDENTIAL SECURITIES INC BLACKROCK CAL BLACKROCK FL BLACKROCK NJ BLACKROCK NY BLACKROCK PA INVESTMENT QUALITY MUNI TRUST FIVE OFFERINGS EACH FOUR MILLION SHARES VIA PRUDENTIAL SECURITIES BLACKEYED PEA RESTAURANTS INC INITIAL 154 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO CLAYTON WILLIAMS ENERGY INC INITIAL 28 MILLION COMMON SHARES VIA PAINEWEBBER INC CNL REALTY INVESTORS INC TWO MILLION COMMON SHARES VIA LEGG MASON WOOD WALKER INC DI Y HOME WAREHOUSE INC INITIAL 22 MILLION COMMON SHARES VIA WILLIAM BLAIR & CO EAGLE HARDWARE & GARDEN INC 45 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES EDMARK CORP 575000 COMMON SHARES VIA PIPER JAFFRAY INC FINLAY FINE JEWELRY CORP 135 MILLION OF SEVENYEAR SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP FREMONT GENERAL CORP 24 MILLION COMMON SHARES VIA MERILL LYNCH & CO HARRY'S FARMERS MARKET INITIAL 18 MILLION CLASS A SHARES 1250000 OFFERED BY THE COMPANY VIA ROBINSONHUMPHREY CO HEILIGMEYERS CO TWO MILLION COMMON SHARES 16 MILLION IN THE US VIA GOLDMAN SACHS INDIANA ENERGY INC ONE MILLION COMMON SHARES VIA GOLDMAN SACHS IRG TECHNOLOGIES INC INITIAL 28 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES MFS COMMUNICATIONS CO INC INITIAL 85 MILLION COMMON SHARES VIA SALOMON BROTHERS INC PUBLIC SERVICE ELECTRIC & GAS 600 MILLION OF TWOPART FIXED AND REFUNDING MORTGAGES 300 MILLION OF SEVENYEAR VIA FIRST BOSTON AND 300 MILLION 11YEAR VIA MERRILL LYNCH STATION CASINOS INC 100 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA SALOMON BROTHERS CALIFORNIA DEPARTMENT OF WATER RESOURCES 535 MILLION OF WATER SYSTEM REVENUE BONDS VIA COMPETITIVE BID MARYLAND 278 MILLION OF GENERAL OBLIGATION BONDS VIA COMPETITIVE BID CHESAPEAKE VA 104 MILLION OF PUBLIC IMPROVEMENT BONDS VIA A DAVENPORT & CO OF VIRGINIA INC GROUP CLEVELAND OHIO 224 MILLION OF WATERWORKS IMPROVEMENT REFUNDING REVENUE BONDS VIA A BEAR STEARNS & CO GROUP FULTONDEKALB HOSPITAL AUTHORITY GA 334 MILLION OF SERIES 1993 REFUNDING REVENUE CERTIFICATES VIA A MERRILL LYNCH GROUP MARYLAND HEALTH & HIGHER EDUCATION FACILITIES AUTHORITY 108 MILLION OF REFUNDING REVENUE BONDS VIA A GOLDMAN SACHS GROUP NASHVILLE COUNTY & DAVIDSON COUNTY TENN 390 MILLION OF SERIES 1993 GENERAL OBLIGATION REFUNDING BONDS VIA A JC BRADFORD & CO GROUP NEW YORK CITY 917 MILLION OF GENERAL OBLIGATION BONDS VIA A BEAR STEARNS GROUP NEW YORK STATE HOUSING FINANCE AUTHORITY 240 MILLION OF REVENUE BONDS VIA A BEAR STEARNS GROUP NORTH CAROLINA MEDICAL CARE COMMISSION 190 MILLION OF HOSPITAL REVENUE BONDS VIA A MERRILL LYNCH GROUP TEXAS MUNICIPAL POWER AGENCY 579 MILLION OF SERIES 1993 REFUNDING REVENUE BONDS VIA A MERRILL LYNCH GROUP WASHINGTON PUBLIC POWER SUPPLY SYSTEM 700 MILLION OF REFUNDING REVENUE BONDS INCLUDING 450 MILLION NUCLEAR PROJECT NO 1 BONDS AND 250 MILLION NUCLEAR PROJECT NO 2 BONDS VIA A GOLDMAN SACHS GROUP 9305170004 930517 REVIEW & OUTLOOK EDITORIAL ASIDES JUST WHAT THEY NEED ONE MAJOR REASON THE DISTRICT OF COLUMBIA HAS THE NATION'S WORST MUNICIPAL GOVERNMENT IS THAT IT ALSO HAS THE MOST BLOATED PAYROLL NOW ELEANOR HOLMES NORTON THE NEW DC DELEGATE TO CONGRESS WANTS TO ADD TO THE FAT SHE HAS SPONSORED A BILL TO CREATE A SUPREME COURT FOR THE DISTRICT A THIRD TIER FOR ITS JUDICIAL SYSTEM FEDERAL TAXPAYERS WOULD PICK UP THE BILL IN THE NEAR TERM WHAT A WONDERFUL GIFT TO THE BESIEGED CAPITAL CITY ANOTHER LEVEL OF JURISTS TO WHICH ITS EVERACTIVE LITIGANTS AND FELONS COULD APPEAL 9305170003 930517 THAI AIRWAYS NET FALLS 14 BANGKOK THAILAND THAI AIRWAYS INTERNATIONAL THAILAND'S FLAG CARRIER REPORTED NET INCOME FELL 14 IN THE SECOND QUARTER ENDED MARCH 31 TO 4496 MILLION BAHT 178 MILLION FROM 5212 MILLION BAHT A YEAR EARLIER ACCORDING TO A STATEMENT RELEASED TO THE STOCK EXCHANGE OF THAILAND THE RESULT WAS BELOW ANALYSTS' FORECASTS THAI AIRWAYS SAID LAST MONTH THAT PROFIT WOULD FALL SHORT OF ITS OWN FORECASTS 9305170002 930517 ENTERPRISE MANDATED HEALTH COVERAGE FINDS SURPRISING OPPONENTS EVEN SMALL BUSINESSES WITH INSURANCE PLANS VIEW PROSPECT WITH ALARM BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL HARDWICK PRINTING SERVICES INC IN GREENVILLE SC OFFERS HEALTH INSURANCE TO ITS EIGHT EMPLOYEES BUT ITS PRESIDENT HAS REMARKABLY MIXED FEELINGS ABOUT MAKING OTHER COMPANIES DO THE SAME THING THOUGH IT COSTS 11000 A YEAR HARDWICK'S COVERAGE HAS HELPED LURE SEVERAL GOOD WORKERS FROM COMPETITORS SAYS JAMES HARDWICK THE SMALL FIRM'S PRESIDENT IF EMPLOYERS DON'T SEE FIT TO TAKE CARE OF THEIR EMPLOYEES THAT LEAVES THOSE EMPLOYEES WIDE OPEN TO GO TO SOMEONE ELSE MR HARDWICK ADDS THIS WIDELY HELD POINT OF VIEW COULD ADD TO RESISTANCE FOR PRESIDENT CLINTON'S IMMINENT HEALTHCARE PROPOSAL THE PLAN IS EXPECTED TO REQUIRE THAT ALL BUSINESSES GIVE EMPLOYEES THE SAME BASIC HEALTHINSURANCE BENEFITS IT'S NO SURPRISE THAT MOST SMALLBUSINESS OWNERS WHO DON'T OFFER HEALTHCARE COVERAGE OPPOSE MANDATED COVERAGE BUT INTERVIEWS WITH OWNERS SHOW THAT A REMARKABLE NUMBER WHO DO OFFER COVERAGE ALSO VIEW MANDATED CARE WITH ALARM MANY OPPOSE IT ON PRINCIPLE AND MANY THINK POORER OWNERS JUST CAN'T AFFORD THE COST BUT OTHERS ALSO THINK THEY WILL LOSE A COMPETITIVE EDGE IN WOOING SKILLED WORKERS IF MANDATES FORCE EVERYONE ELSE TO OFFER HEALTH CARE TOO ADMINISTRATION OFFICIALS HAVE BEEN HOPING THAT THESE OWNERS WOULD BACK MANDATED COVERAGE FOR EVERYONE TO GET THE HEALTHCOST BURDEN SHARED EQUITABLY OBVIOUSLY IT'S A BURDEN ON SOME BUSINESSES THAT PROVIDE HEALTH INSURANCE FOR THEIR EMPLOYEES TO COMPETE WITH OTHERS WHO DO NOT VICE PRESIDENT AL GORE SAID AT A RECENT PUBLIC MEETING OF THE ADMINISTRATION'S HEALTHCARE TASK FORCE BUT THESE COMPANIES THINK HEALTH PLANS ALSO HELP THEM COMPETE WHICH IS A MAJOR REASON THEY STARTED THEM IN THE FIRST PLACE IN A RECENT SURVEY BY THE KESSLER EXCHANGE A RESEARCH FIRM IN NORTHRIDGE CALIF 60 OF THE APPROXIMATELY 500 SMALLCOMPANY OWNERS QUESTIONED SAID THEY OFFER HEALTH INSURANCE TO ATTRACT GOOD WORKERS WE'RE VERY FOCUSED ON OUR BENEFITS BECAUSE WE WANT TO HIRE THE BEST AND THE BRIGHTEST HEALTH INSURANCE IS WHAT EMPLOYEES ASK THE MOST QUESTIONS ABOUT SAYS LAURA HENDERSON PRESIDENT OF PROSPECT ASSOCIATES A ROCKVILLE MD FIRM THAT PRODUCES HEALTHPROMOTION MATERIALS FOR FEDERAL AGENCIES INSURANCE RATES FOR THE COMPANY'S 130 EMPLOYEES HAVE INCREASED ABOUT 16 A YEAR SINCE 1988 LIKE MANY FIRMS BIG AND SMALL PROSPECT HAS TRIMMED SOME BENEFITS TO KEEP ITS RATES DOWN BUT HAS KEPT THE COVERAGE A NUMBER OF SMALL BUSINESSES SAY MARKETPLACE PRESSURES FORCE THEM TO PROVIDE HEALTHCARE BENEFITS DESPITE THE SPIRALING COSTS I JUST CAN'T HIRE PEOPLE WITHOUT A MINIMALLY ACCEPTABLE PACKAGE SAYS MARK JOHNSTON PRESIDENT AND OWNER OF REHABILITATION CONSULTANTS FOR INDUSTRY INC THE OAK BROOK ILL CONCERN EMPLOYS 120 EMPLOYEES AND HELPS LARGE COMPANIES MANAGE WORKER INJURIES IT COMPETES FOR TALENT WITH EMPLOYERS WITH GENEROUS PLANS SUCH AS BIG HOSPITALS COVERING 75 OF THE HEALTHINSURANCE PREMIUM FOR AN INDIVIDUAL AND TWOTHIRDS FOR A FAMILY ALSO ENABLES REHABILITATION CONSULTANTS TO ATTRACT WORKERS FROM BUSINESSES THAT DON'T OFFER ANY SUCH COVERAGE MR JOHNSTON SAYS BUT OPPOSITION TO MANDATED COVERAGE GOES BEYOND PRACTICAL CONSIDERATIONS I'M A KNEEJERK LIBERAL FROM WAY BACK AND I REALLY BELIEVE IN DOING THESE THINGS SAYS KATHARINE PAINE PRESIDENT OF DELAHAYE GROUP INC A PORTSMOUTH NH FIRM THAT EVALUATES MARKETING PLANS BUT I'M STILL VERY MUCH AGAINST THE MANDATE SHE ADDS I DON'T BELIEVE YOU CAN MANDATE IT ON TO SMALL BUSINESSES BESIDES MEDICAL AND DENTAL INSURANCE DELAHAYE GROUP OFFERS ITS 21 FULLTIME WORKERS FLEXIBLE WORKING HOURS AND GENEROUS VACATION TIME NONETHELESS MS PAINE MOVED DELAHAYE GROUP TO PORTSMOUTH NH FROM BOSTON IN MARCH 1989 WHEN MASSACHUSETTS MOVED TO REQUIRE NEARLY ALL EMPLOYERS TO OFFER HEALTH INSURANCE OR PAY INTO A STATE FUND THAT REQUIREMENT HOWEVER HAS NEVER BEEN IMPLEMENTED ELLIOTT HOFFMAN FOUNDER AND PRESIDENT OF JUST DESSERTS A SAN FRANCISCO BAKERY CHAIN SAYS HIS COMPANY PROVIDES ITS 300 WORKERS WITH HEALTH INSURANCE AS WELL AS PAID FAMILY LEAVE YET HE ALSO OPPOSES MANDATED COVERAGE MANY SMALL BUSINESSES JUST CAN'T AFFORD IT HE ADDS NOTING THAT THE FIRM'S HEALTHINSURANCE RATES HAVE INCREASED 50 OVER THE LAST FIVE YEARS DONALD SUMMERS SR PRESIDENT OF AUSTIN WELDER & GENERATOR SERVICE INC IN AUSTIN TEXAS IS REPRESENTATIVE OF THE SMALLCOMPANY OWNERS WHO WANT TO BUT CAN'T AFFORD TO PROVIDE EMPLOYEES WITH HEALTH INSURANCE HE SAYS HE CANCELED HIS EIGHT WORKERS' COVERAGE A FEW YEARS AGO WHEN RATE INCREASES MEANT PREMIUMS WOULD HAVE EXCEEDED HIS NET MONTHLY PROFIT OF ABOUT 2500 I DON'T EVEN TALK TO INSURANCE COMPANIES ANYMORE I'M JUST WORN OUT MR SUMMERS CONTINUES I MUST HAVE LOOKED AT BETWEEN 50 AND 100 PLANS AND THEY ALL COST FROM 3000 TO 3500 A MONTH AT PRESENT SMALL COMPANIES TYPICALLY PAY 30 MORE FOR HEALTHINSURANCE COVERAGE THAN LARGE CONCERNS AND OFTEN FACE ANNUAL INCREASES OF BETWEEN 20 AND 50 SAID ERSKINE BOWLES THE NEW HEAD OF THE SMALL BUSINESS ADMINISTRATION DURING HIS SENATE CONFIRMATION HEARING THIS MONTH NONETHELESS MANY CRITICS SAY MORE SMALL CONCERNS COULD AFFORD MANDATED HEALTHCARE BENEFITS AND SHOULD SUPPORT THEM OUT OF FAIRNESS A NUMBER OF SMALL BUSINESSES OFFER COVERAGE EVEN THOUGH THEY CAN'T SPREAD THE COST ACROSS A BROAD SPECTRUM SAYS KAREN IGNAGNI DIRECTOR OF EMPLOYEE BENEFITS FOR THE AFLCIO IN WASHINGTON AND A CADRE OF BUSINESSES REFUSE TO OFFER HEALTH INSURANCE AND THEN WIN CONTRACT BIDS BECAUSE OF THEIR LOWER COSTS SHE ADDS THE CLINTON PLAN IS EXPECTED TO MAKE HEALTHCOVERAGE COSTS FOR SMALL EMPLOYERS MORE COMPETITIVE BY HAVING THEM JOIN LARGE PURCHASING NETWORKS WHICH WOULD HAVE THE MUSCLE TO BARGAIN FOR CHEAPER RATES AND MEDICAL CARE TO WOO SMALLBUSINESS SUPPORT THE ADMINISTRATION ALSO IS CONSIDERING VARIOUS OPTIONS INCLUDING A PAYROLL TAX TO COVER HEALTHCARE COSTS FOLDING WORKERS' COMPENSATION COVERAGE INTO ITS HEALTHCARE PLAN AND PHASING IN MANDATED COVERAGE 9305170001 930517 THE OUTLOOK CURRENCY WOES BRING HARD CHOICES IN THE EC BY TERENCE ROTH LONDON PRIME MINISTER JOHN MAJOR ISN'T IN ANY HURRY TO RETURN THE BRITISH POUND TO THE RIGID EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM AND HE HAS HIS REASONS BRITAIN WHICH HAS BROKEN MOST EUROPEAN RULES FOR MANAGING ITS ECONOMY HAS SO FAR ENJOYED A STURDY ECONOMIC RECOVERY WHILE THE REST OF WESTERN EUROPE IS STAGNATING OR FOLLOWING GERMANY INTO RECESSION OTHER LOWINFLATION COUNTRIES HAVEN'T EASED MONETARY POLICY AS MUCH AS THEY WOULD LIKE BECAUSE THEY BELIEVE THEY MUST DEFEND THEIR CURRENCIES AGAINST GERMANY'S HIGH INTEREST RATES AND STRONG MARK BUT NOW BRITAIN'S RECOVERY COULD TEMPT OTHERS IN THE SYSTEM TO COPY ITS RECOVERY FORMULA BY BAILING OUT OF THE ERM IT WAS BRITAIN'S EXIT FROM THE ERM AFTER ALL THAT HELPED REVIVE THE BRITISH ECONOMY AFTER TWO YEARS OF RECESSION TRUE BRITAIN LAID THE FOUNDATION BY HOLDING DOWN WAGES AND LOWERING INTEREST RATES BUT ITS EARLY EASING OF MONETARY POLICY PROVOKED SPECULATIVE ATTACKS ON THE POUND WHICH THE MARKETS DEEMED OVERVALUED AND LONDON REACTED LAST SEPTEMBER BY ABANDONING ITS EFFORT TO MAINTAIN THE POUND'S FIXED TRADING BANDS WHICH ALLOWED ONLY A 6 FLUCTUATION AGAINST OTHER ERM CURRENCIES THAT SPLIT FROM THE ERM OPENED THE WAY FOR EVENDEEPER INTERESTRATE CUTS AND A COMPETITIVE 20 DEPRECIATION OF THE POUND THE COMBINATION SPARKED A JUMP IN BRITISH EXPORTS AND SIGNS OF REBOUNDING CONSUMER DEMAND MOREOVER ITALY'S ECONOMY ALSO IS EXCEEDING THE EUROPEAN COMMUNITY AVERAGE SINCE ROME DESPITE ITS PARALYZING POLITICAL CRISIS WITHDREW FROM THE ERM YET FRANCE WITH AN UNEMPLOYMENT RATE AT 11 AND RISING AND SPAIN AT 20 AND ALSO RISING ARE RESISTING THE TEMPTATION HOWEVER THEY COULD CHANGE THEIR POLICIES UNLESS A EUROPEAN RECOVERY ARRIVES SOON SPAIN LAST WEEK TOOK A LESSER STEP BY PUSHING THROUGH AN 8 DEVALUATION IN THE PESETA AGAINST OTHER ERM CURRENCIES ITS THIRD MARKDOWN IN EIGHT MONTHS THE PORTUGUESE ESCUDO WAS FORCED TO FOLLOW SUIT WITH A 65 MARKDOWN THEN SPAIN CUT ITS CHIEF CENTRALBANK LENDING RATE TO COMMERCIAL BANKS TO 115 FROM 13 BUT REMAINING IN THE ERM MEANS LIMITING THE SCOPE OF RATE CUTS OR RISKING NEW CURRENCY PRESSURES THE EC NATIONS' CHOICE BOILS DOWN TO THIS REMAIN IN THE ERM AND HOPE FOR CUTS IN GERMAN RATES OR LEAVE IT AND RISK MISSING THE BOAT LATER IN THE DECADE WHEN A SINGLE EUROPEAN CURRENCY IS SUPPOSED TO HELP EUROPE'S ATEAM ECONOMIES PROSPER CLEARLY PEOPLE WHO HAVE UTILIZED MONETARY FLEXIBILITY LIKE BRITAIN AND ITALY ARE DOING RATHER BETTER THAN OTHERS WHO HAVE REMAINED IN THE ERM SAYS IAN HARWOOD CHIEF ECONOMIST OF SG WARBURG SECURITIES LTD IN LONDON AT SOME POINT PEOPLE IN FRANCE ARE GOING TO START SCREAMING FRANCE WHILE CHOOSING TO STAY IN THE ERM AND RESIST RECURRENT PRESSURE TO DEVALUE THE FRANC HAS NEVERTHELESS MANAGED A SERIES OF SMALL CUTS IN SHORTTERM INTEREST RATES BUT BECAUSE OF THREATS TO THE FRANC'S FIXED PARITY WITH THE MARK BOLDER MOVES MUST WAIT FOR THE CAUTIOUS BUNDESBANK TO CUT GERMAN RATES AGAIN EC BUREAUCRATS FRET THAT ERM DEVALUATIONS AND SUSPENSIONS ARE A CATALYST FOR COMPETITIVE DEVALUATIONS THE OUTSIDETHESYSTEM MOVES THAT WOULD DISCREDIT THE WHOLE NOTION OF EUROPEAN COHESION AND CURRENCY STABILITY ON WHICH THE MAASTRICHT TREATY RESTS BUT UNLESS THE CAUTIOUS BUNDESBANK CUTS RATES FASTER THE PRESSURE ON OTHER GOVERNMENTS TO FOLLOW BRITAIN'S EXAMPLE COULD BECOME OVERWHELMING IF MORE ERM COUNTRIES CHOOSE GROWTH AND JOBS OVER CONFORMITY THE MAASTRICHT AGREEMENT WOULD LOSE ITS LAST BIT OF CREDIBILITY SAYS DAVID ROCHE CHIEF STRATEGIST FOR MORGAN STANLEY INTERNATIONAL IT WOULD MEAN HE SAYS THAT MAASTRICHT IS FINISHED NOT BECAUSE OF CURRENCY TRADERS BUT BECAUSE OTHER COUNTRIES BECAME JEALOUS WHEN LOOKING AT GROWTH IN BRITAIN AND RISING UNEMPLOYMENT AT HOME THERE'S MUCH TO ENVY UK BUSINESS CONFIDENCE IS RISING AT ITS FASTEST RATE IN A DECADE BRITAIN'S ECONOMY WAS GATHERING MOMENTUM EARLY THIS YEAR AND SHOULD EXPAND 14 IN 1993 AND 31 IN 1994 ACCORDING TO INTERNATIONAL MONETARY FUND FORECASTS IN CONTRAST WESTERN GERMANY'S ECONOMY IS EXPECTED TO CONTRACT 2 BRINGING THE UNITED GERMAN ECONOMY TO A 13 DECLINE AND DRAGGING DOWN MOST OF EUROPE THE IMF SEES THE EC ECONOMY AS A WHOLE GROWING AN ANEMIC 01 THIS YEAR OTHER FORECASTERS PREDICT WORSE BRITAIN'S PROBLEM MEANWHILE IS THAT WHILE THE US ACCOUNTS FOR JUST OVER 10 OF ITS FOREIGN TRADE THE CONTINENT PROVIDES MORE THAN 50 MOREOVER THE SOURCES OF ITS RECOVERY DEEP RATE CUTS AND CURRENCY DEPRECIATION ARE RAISING NEW INFLATION FEARS IT IS HARD TO SAY WHETHER BRITAIN CAN RESIST RECESSIONARY TRENDS ACROSS THE CHANNEL BUT IT'S NEARLY CERTAIN THAT BRITAIN ALONE CAN'T PULL EUROPE OUT OF ITS RUT 9305170150 930415 KELLY MICHAELS'S ORWELLIAN ORDEAL BY DOROTHY RABINOWITZ ON APRIL 15 1988 I SAT AT MY DESK AT WWORTV NEW JERSEY'S LARGEST TELEVISION STATION WATCHING TV REPORTERS DELIVER NEWS OF THE CONVICTION OF MARGARET KELLY MICHAELS SHE WOULD BE SENTENCED A FEW MONTHS LATER TO 15 TO 47 YEARS THE 26YEAROLD MS MICHAELS A NATIVE OF PITTSBURGH HAD TAKEN A JOB WORKING WITH PRESCHOOLERS IN ORDER TO EARN MONEY TO ATTEND DRAMA SCHOOL SHE STOOD CONVICTED OF HAVING PERPETRATED TERRIFYING AND BIZARRE SEXUAL CRIMES 115 OF THEM AGAINST FOUR AND FIVEYEAROLD CHILDREN AT THE WEE CARE DAY NURSERY THE PROSECUTORS HAD ACCUSED MS MICHAELS OF UNSPEAKABLE CRIMES THEY CHARGED THAT IN THE SCHOOL WHICH OCCUPIED SEVERAL FLOORS OF AN EPISCOPAL CHURCH IN MAPLEWOOD NJ SHE HAD REGULARLY RAPED THESE VERY SMALL CHILDREN WITH KNIVES FORKS AND LEGO BLOCKS AND A LARGE WOODEN COOKING SPOON MAGICALLY NONE OF THESE ASSAULTS HAD LEFT A TRACE OF INJURY IN THE TRANQUIL DAYTIME SETTING OF THE CHURCH SCHOOL CLAIMED THE PROSECUTORS SHE ALSO UNDRESSED AND REDRESSED PACKS OF SMALL CHILDREN SHE THEN FORCED THEM UNDER THREAT OF DEATH TO PLAY GAMES IN THE NUDE SHE WAS CHARGED WITH MAKING THOSE CHILDREN DRINK HER URINE AND EAT HER FECES SHE WAS ALSO CHARGED WITH PLAYING JINGLE BELLS IN THE NUDE AND OF SMEARING THE CHILDREN'S GENITAL AREAS WITH PEANUT BUTTER WHICH SHE THEN ALLEGEDLY LICKED OFF SHE WAS SUPPOSED TO HAVE ACCOMPLISHED THIS MASS ABUSE DAILY DURING REGULAR SCHOOL HOURS IN A MUCHTRAFFICKED CHURCH AN APPALLED OFFICIAL OF THAT CHURCH ASKED ME AFTER THE CONVICTION HOW THIS YOUNG WOMAN COULD HAVE PLAYED GAMES IN THE NUDE WITH HORDES OF CHILDREN IN THE CHOIR ROOM AS WAS CHARGED WHEN CHURCH PERSONNEL WALKED IN AND OUT OF THAT ROOM ALL DAY LONG FOR THE ENTIRE SEVEN MONTHS THAT KELLY MICHAELS WORKED AT WEE CARE NO ONE AT THE SCHOOL EVER SAW OR HEARD ANYTHING OF THESE MONSTROUS CRIMES ALLEGEDLY COMMITTED AGAINST 20 CHILDREN NOT A SINGLE CHILD WENT HOME AND REPORTED A WORD AT THE TIME OR CRIED OUT IN PAIN AT THE TERRIBLE SHARP INSTRUMENTS WITH WHICH THE CHILDREN WERE ALLEGEDLY ASSAULTED WHEN THE TEACHER LEFT WEE CARE TO WORK AT ANOTHER SCHOOL THE PRESCHOOLERS SHOWED EVERY SIGN OF MISSING HER AND EAGERLY ASKED WHEN THEY COULD SEE KELLY A FEW YEARS LATER AT TRIAL AND AFTER LONG AND STEADY SCHOOLING BY THE CHILD ABUSE INVESTIGATORS THE CHILDREN SPOKE OF THEIR FORMER TEACHER AS A MONSTER BY THIS TIME ONE CHILD COULD TESTIFY AND DID THAT KELLY HAD TURNED HIM INTO A MOUSE PROSECUTOR GLENN GOLDBERG TOOK THE PRECAUTION OF TELLING JURORS THEY DIDN'T HAVE TO BELIEVE EVERYTHING THE CHILDREN SAID IN THE BRAVE NEW WORLD OF THE CHILDABUSE TRIAL OF WHICH THIS CASE WAS SO PURE AN EXEMPLAR THE JURORS CAN EVIDENTLY BE TOLD TO BELIEVE ONLY THAT PART OF THE TESTIMONY THE PROSECUTORS SAY IS TRUE TO PROTECT THE ANONYMITY OF THE PLAINTIFF FAMILIES AN EFFORT TO WHICH THE JUDGE WILLIAM HARTH DEVOTED HIMSELF FULL TIME THE TRIAL TRANSCRIPT WAS SEALED AND PRESS ACCESS BLOCKED I FOUND MY WAY TO THAT TRANSCRIPT NEVERTHELESS WHAT I DISCOVERED THERE AND IN SUBSEQUENT SEARCHING WAS ENOUGH I THOUGHT TO CONVINCE ANY RATIONAL PERSON THAT A YOUNG WOMAN HAD BEEN CONVICTED AND IMPRISONED FOR LONG YEARS ON THE BASIS OF SOME OF THE MOST ABSURD TESTIMONY EVER CREDITED IN AN AMERICAN COURTROOM HOW COULD SUCH A THING COME ABOUT THE ANSWER IN PART IS THAT WE LIVE IN AN ERA THAT HAS ELEVATED CERTAIN ACCUSATIONS AND ACCUSERS TO THE STATUS OF THE SACROSANT THERE ARE THAT IS CERTAIN CHARGES PRIME AMONG THEM SEX ABUSE AND RACIAL BIAS THAT ARE NOW CONSIDERED SUFFICIENT UNTO THEMSELVES AND BEYOND QUESTION SIMPLY BECAUSE THEY HAVE BEEN BROUGHT MORTON STAVIS ATTORNEY FOR KELLY MICHAELS COULD NOT GET THE NEW YORKBASED CENTER FOR CONSTITUTIONAL RIGHTS TO PROVIDE RESOURCES FOR THE CASE ALTHOUGH HE WAS ONE OF THE CENTER'S FOUNDERS IT APPARENTLY VIOLATED THE CENTER'S CANONS OF POLITICALLY PROGRESSIVE ORTHODOXY TO SUGGEST THAT A PERSON CHARGED WITH SEX ABUSE MIGHT BE INNOCENT TO GRASP THE MINDSET AT THE HEART OF THIS VIEW WE NEED ONLY RECALL THE WORDS OF CATHERINE COMINS ASSISTANT DEAN OF STUDENT LIFE AT VASSAR WHO TOLD TIME MAGAZINE IN 1991 THAT WOMEN SHOULDN'T HAVE TO CONCERN THEMSELVES WITH BEING RIGHT WHEN THEY CHARGE SOMEONE WITH RAPE INDEED DEAN COMINS EXPLAINED MEN UNJUSTLY ACCUSED MIGHT HAVE A LOT OF PAIN BUT IT IS NOT A PAIN THAT I WOULD NECESSARILY HAVE SPARED THEM IN THE CASE OF KELLY MICHAELS THE PROSECUTORS WELL UNDERSTOOD THE USES OF ANOTHER CLASS OF SACROSCANT ACCUSERS NAMELY CHILDREN THE JURORS WERE TOLD ABOVE ALL THAT THEY MUST BELIEVE THE CHILDREN WHO HAD WORKED SO HARD AND ENDURED SO MUCH IN ORDER TO TESTIFY THE JURORS OF COURSE WERE NO LESS HEAVILY INFLUENCED BY THE TESTIMONY OF PROSECUTION EXPERTS ON CHILD ABUSE SUCH AS BRONX PSYCHOLOGIST EILEEN TREACY ACCORDING TO MS TREACY WHEN A CHILD CONTINUED TO SAY NO NO NO HE HAD NOT BEEN ABUSED THIS WAS PROOF THAT THE CHILD HAD BEEN ABUSED IN THE ORWELLIAN WORLD OF THIS COURTROOM PROSECUTORS HAD PLAINTIFF PARENTS LOOK AT A CHART ON THE STAND AND CHECK OFF SUSPICIOUS CLUES THAT THEY ALL NOW RECALLED SEEING IN THEIR CHILDREN DURING THE MONTHS MS MICHAELS WAS THEIR TEACHER A CHILD'S LACK OF APPETITE FOR PEANUT BUTTER WAS A BIG ITEM RANKING HIGH IN THE LIST OF SYMPTOMS THIS WAS JURORS WERE GIVEN TO UNDERSTAND PROOF OF THE TRAUMA MS MICHAELS HAD INFLICTED ON THE CHILDREN WHEN SHE ATE PEANUT BUTTER OFF THEIR BODIES THAT CHILDREN CAN TIRE OF PEANUT BUTTER WAS NEEDLESS TO SAY NOT ONE OF THE POSSIBILITIES OFFERED FOR THE JURY'S CONSIDERATION NIGHTMARES BEDWETTING FIGHTING ANXIETY ALL NORMAL CHILDHOOD OCCURRENCES WERE SIMILY REPRESENTED AS GRAVE SYMPTOMS OF SEXUAL ABUSE TAPE RECORDINGS OF INVESTIGATORS' INTERVIEWS WITH THE CHILDREN FORMED THE BASIS OF THE PROSECUTORS' CASE THESE ARE ELOQUENT IN THEIR REVELATIONS THE TAPES REVEAL CHILDREN CAJOLED BRIBED AND BROWBEATEN TO THE POINT OF EXHAUSTION IN THE EFFORT TO GET THEM TO ACCUSE THEIR TEACHER WHEN A CHILD RESISTED THE PRESSURES AND PERSISTED IN SAYING NOTHING HAD HAPPENED THE INTERVIEWER WAS NOT HAPPY DIVISION OF YOUTH AND FAMILY SERVICES INVESTIGATOR LOUIS FONOLLERAS WARNED ONE SUCH SMALL RESISTER IF YOU DON'T HELP ME I'M GOING TO TELL YOUR FRIENDS THAT YOU NOT ONLY DON'T WANT TO HELP ME BUT YOU WON'T HELP THEM THE CHILD WHO HELPED BY COMING UP WITH CHARGES COULD EXPECT TO BE REWARDED WITH LAVISH PRAISE BOY YOU'RE DOING GOOD INVESTIGATOR FONOLLERAS REPEATEDLY TOLD SUCH INTERVIEWEES HOW HAD IT ALL STARTED A WEE CARE PUPIL HAVING HIS TEMPERATURE TAKEN RECTALLY DURING A PEDIATRIC CHECKUP SAID HIS TEACHER KELLY MICHAELS ALSO TOOK HIS TEMPERATURE IT WAS ENOUGH TO SET THE INVESTIGATIVE MACHINERY ROLLING THE CHILD DID NOT EXPLAIN THAT THE TEMPERATURE TAKING HIS TEACHERS DID WAS DONE WITH PLASTIC STRIPS ON THE FOREHEAD MS MICHAELS WOULD BE ACQUITTED OF THIS FIRST CHARGE BUT AS IS COMMON IN THESE CASES THE FIRST CHARGE WAS FATAL ANYWAY IT TAKES JUST ONE ACCUSATION TO BRING FORTH CADRES OF ABUSE SPECIALISTS AND THERAPISTS WHO UNCOVER MORE AND MORE CHARGES A FEW WEEKS AGO A NEW JERSEY APPELLATE COURT REVERSED MS MICHAELS'S CONVICTION IT SEEMED THE END OF A STRUGGLE IN WHICH I HAD TAKEN SOME PART IT HAD BECOME CLEAR TO ME ONCE I UNDERSTOOD THE NATURE OF THIS CASE AND ITS PROSECUTION THAT MARGARET KELLY MICHAELS WAS GOING TO BE BURIED IN JAIL FOR A VERY LONG TIME UNLESS SOMEONE DID SOMETHING AFTER LONG SEARCHING AND MANY REFUSALS I FOUND THE LAWYER WHO WOULD TAKE ON HER APPEAL MORTON STAVIS A DISTINGUISHED CONSTITUTIONAL LAWYER SPENT THE LAST YEARS OF A MODEL LIFE WORKING TIRELESSLY WITHOUT FEE ABETTED BY YOUNG LAWYERS DAN WILLIAMS ROBERT ROSENTHAL AND OTHERS TO WIN THAT REVERSAL HE DIED JUST A FEW WEEKS AFTER SUBMITTING THE APPELLATE BRIEF NO ONE SITTING AT THE FEBRUARY APPELLATE HEARING COULD MISS THE CONTROLLED SCORN EVIDENCED BY THE THREE JUDGES AS THEY DISCUSSED THE PROSECUTORS' CASE AND THEIR EXPERT WITNESSES MARGARET KELLY MICHAELS WAS GRANTED BAIL AND RELEASED FROM A PRISON WHERE SHE HAD SPENT THE PAST FIVE YEARS OF HER LIFE BUT THE CASE ISN'T OVER YET THE JUDGES REMANDED IT TO A LOWER COURT FOR FURTHER PROCEEDINGS EITHER DISMISSAL OR A NEW TRIAL THE PROSECUTORS ARE THEY SAY DETERMINED TO GO TO TRIAL AGAINAS ARE APPARENTLY SOME OF THE PLAINTIFF FAMILIES THE ACCUSING PARENTS I MET WERE INTELLIGENT PEOPLE AND IMPASSIONED ABOUT THEIR CASE THEIR CHILDREN WERE TOLD AND RETOLD AND BROUGHT TO A WITNESS STAND TO ATTEST THAT THEY WERE THE VICTIMS OF MONSTROUS SEXUAL ABUSE THE PARENTS NOW MUST CONFRONT THE FACT THAT THOSE CHILDREN MAY GO THROUGH THE REST OF THEIR LIVES BURDENED BY THAT BELIEF SOME SACROSANCT ACCUSATIONS ARE NEVER UNDONE AND IN THE WORLD AT LARGE EVEN NOW IN THE FACE OF THE UNBELIEVABLE CHARGES AND DISCREDITED TESTIMONY THE SHEMUSTHAVEDONESOMETHING SCHOOL OF THOUGHT PERSISTS THAT SO HUGELY ELABORATE A PROSECUTION BROUGHT AT SUCH COST NOT LEAST TO A 26YEAROLD WOMAN FULL OF AMBITION AND LIFE HAD BEEN BUILT ON AIR IS INDEED HARD TO TAKE IN EVEN THE MOSCOW TRIALS OF THE 1930S WHERE MEN CONFESSED TO WHAT THEY HAD NEVER DONE SEEM MORE COMPREHENSIBLE THAN WHAT HAPPENED IN THIS CASE MS RABINOWITZ CURRENTLY A JOURNAL EDITORIAL PAGE WRITER FIRST WROTE ABOUT THIS STORY IN HARPER'S IN MAY 1990 SEE RELATED LETTERS LETTERS TO THE EDITOR HYSTERIA INGNORANCE AND THE LAW WSJ APRIL 29 1993 9304150138 CORRECTION AN ARTICLE ON CHILD ABUSE KELLY MICHAELS'S OWELLIAN ORDEAL EDITORIAL PAGE APRIL 15 REFERRED TO A QUOTE BY CATHERINE COMINS FORMER ASSISTANT DEAN OF STUDENT LIFE AT VASSAR COLLEGE ON FALSE ACCUSATIONS OF RAPE IT WAS PUBLISHED IN TIME MAGAZINE IN 1991 THOUGH DEAN COMINS LATER SAID HER REMARKS WERE MISINTERPRETED WSJ MAY 17 1993 9304290171 YY93 MM05 9305170047 930408 REVIEW & OUTLOOK EDITORIAL OVERWHELMING CHOICE LINDA CROSS THE PUBLIC SCHOOL SHAKESPEARE TEACHER WHO RAN FOR WISCONSIN SCHOOL SUPERINTENDENT ON A SCHOOLCHOICE PLATFORM WILL HAVE NO TROUBLE FINDING A LITERARY ALLUSION TO DESCRIBE THE ARMY THAT ROSE UP AGAINST HER LIKE THE FOREST OF TREES THAT TURNED INTO SOLDIERS AND BEGAN MARCHING ON MACBETH'S CASTLE THE LEGIONS OF THE EDUCATIONAL BUREAUCRACY PREVAILED THIS WEEK JOHN T BENSON A SCHOOL SUPERINTENDENT BACKED BY TEACHERS' UNIONS DEFEATED MS CROSS 53 TO 47 AFTER A BITTER CAMPAIGN THE WISCONSIN EDUCATION ASSOCIATION COUNCIL THE STATE'S MOST POWERFUL TEACHERS' UNION MADE CERTAIN MS CROSS WOULDN'T GET A CHANCE TO ALTER THE STATE'S EDUCATIONAL STATUS QUO THE UNION POURED AN ESTIMATED 200000 INTO AN INDEPENDENT EXPENDITURE CAMPAIGN AGAINST HER ADD TO THAT INESTIMABLE SOFT CONTRIBUTIONS IN THE FORM OF VOLUNTEERS MS CROSS HAD SAID SHE HAD NO PLANS TO CALL IMMEDIATELY FOR CHOICE FOR PRIVATE SCHOOLS THAT SHE ONLY WANTED MORE PILOT PROGRAMS FOR LOWINCOME STUDENTS SUCH AS THE ONE THAT HAS OPERATED SUCCESSFULLY IN MILWAUKEE SINCE 1990 THE UNION'S IDEA OF POLITICS WAS TO RUN AN ATTACK AD IN WHICH A GRANDMOTHERLY FIGURE TOLD VIEWERS LINDA CROSS WANTS TO USE YOUR TAX DOLLARS TO HELP RICH PARENTS PAY TUITION AT PRIVATE SCHOOLS MR BENSON FOLLOWED THAT POUNDING WITH HIS OWN ADS HAVING CALCULATED THAT WISCONSIN PARENTS SPEND 450 MILLION A YEAR ON PRIVATE SCHOOL TUITION HE CHARGED THAT IF MS CROSS WAS ELECTED SHE WOULD HAVE TO RAISE PROPERTY TAXES BY THAT AMOUNT TO PAY FOR CHOICE THIS IGNORED THE FACT THAT ALL VOUCHER PROGRAMS COVER ONLY A PORTION OF MOST PRIVATE SCHOOL TUITION AND THAT TAXPAYERS WOULD SAVE MONEY BECAUSE PRIVATE SCHOOLS OFFER THEIR PRODUCT FOR AN AVERAGE OF ABOUT HALF THE COST OF A TYPICAL URBAN PUBLIC SCHOOL DESPITE BEING OUTSPENT BY AT LEAST THREE TO ONE MS CROSS MADE A HIGHLY CREDIBLE SHOWING AND DID BETTER THAN THE LAST POLLS INDICATED SHE WOULD SIGNIFICANTLY SHE WON 47 OF THE VOTE IN HEAVILY DEMOCRATIC MILWAUKEE COUNTY SHE RAN WELL IN BLACK DISTRICTS INCLUDING THE ONE REPRESENTED BY CHOICE PIONEER POLLY WILLIAMS TYPICALLY CHOICE IS MOST ARDENTLY SUPPORTED BY INNERCITY PARENTS BUT FOR NOW THE WISCONSIN TEACHERS' UNION HAS RETAINED ITS MONOPOLY HOLD ON THE KIND OF EDUCATION THE LEAST WELLOFF CHILDREN THERE TAKE INTO THE WORLD TEACHERS' UNIONS ACROSS THE COUNTRY HAVE BECOME THE 800POUND GORILLAS OF AMERICAN POLITICS FUELED BY THE HIGHER DUES THEY'VE BEEN ABLE TO EXACT FOLLOWING THE LARGE SALARY INCREASES THEY WON DURING THE 1980S THEY HAVE A MEMBERSHIP THAT IS HIGHLY MOTIVATED TO VOTE AND WILLING TO WORK LONG HOURS ON POLITICAL ACTIVITIES TEACHERS WHO DON'T GO ALONG WITH THE UNION PROGRAM ARE OSTRACIZED AND OFTEN THESE ARE THE BEST TEACHERS THE ONES WHO WANT TO BREAK FREE OF THE BUREAUCRACY'S CURRICULUM OR PEDAGOGY MANY TEACHERS CALLED THE CROSS CAMPAIGN AND SAID THEY WANTED TO HELP BUT WERE AFRAID TO HAVE THEIR NAMES SHOW UP ON A CONTRIBUTION OR VOLUNTEER LIST SO YES THE UNIONS THE CENTRAL BUREAUCRACY AND THE EDUCATIONAL ESTABLISHMENT MAY HAVE DEFEATED LINDA CROSS BY SIX POINTS IN WISCONSIN THESE VICTORIES HOWEVER ARE LOOKING INCREASINGLY PYRRHIC WINNING ELECTIONS SO THAT YOU CAN PROVIDE VOTERS WITH BUSINESS AS USUAL ESPECIALLY IN THE SCHOOLS LOOKS MORE THAN EVER LIKE AN INEVITABLE LOSER SEE RELATED LETTERS LETTERS TO THE EDITOR VOUCHERS OFFER A CHOICE OF PROBLEMS WSJ MAY 17 1993 9304080099 YY93 MM05 9305170039 930405 TECHNOLOGY FLORIDA ACTS TO REVAMP MEDICAL SYSTEM RESULT COULD BE MODEL FOR US VERSION BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL THE FUTURE OF HEALTH CARE IN THE US MAY SOON BE ON VIEW IN FLORIDA AFTER ALMOST TWO YEARS OF STUDY AND DEBATE THE STATE'S LAWMAKERS IN A SESSION THAT ENDED AT 1 AM SATURDAY ADOPTED GOV LAWTON CHILES'S PLAN TO REVAMP FLORIDA'S TOTTERING MEDICAL SYSTEM THE PLAN REPRESENTS THE MOST AMBITIOUS EFFORT YET TO APPLY THE THEORY OF MANAGED COMPETITION TO HEALTH CARE AN IDEA THAT MARRIES GOVERNMENT AND BUSINESS AND WHICH HAS BEEN STRONGLY ENDORSED BY PRESIDENT CLINTON WE'LL BE A GOOD TEST CASE SAID DOUGLAS COOK DIRECTOR OF FLORIDA'S AGENCY FOR HEALTH CARE ADMINISTRATION AND GOV CHILES'S SENIOR MEDICAL ADVISER WHILE LEGISLATURES IN HAWAII AND MINNESOTA HE SAID HAVE MOVED TO CURB COSTS AND EXTEND BENEFITS TO MORE RESIDENTS NO OTHER STATE WITH AS BIG AND DIVERSE A POPULATION HAS TAKEN THIS STEP AND CERTAINLY NONE WITH AS CRITICAL A PROBLEM INDEED FLORIDA SPENT MORE THAN 35 BILLION ON HEALTH CARE IN 1992 MORE THAN TRIPLE THE AMOUNT OF JUST A DECADE AGO MR COOK SAID AS MUCH AS 80 CENTS OF EACH NEW DOLLAR OF REVENUE HE ADDED IS NOW ALLOCATED TO MEDICAL BILLS LEAVING PRACTICALLY NO ADDITIONAL FUNDS FOR EDUCATION FOR CRIME PREVENTION OR FOR ENVIRONMENTAL PROTECTION HEALTHCARE COSTS ARE LITERALLY BANKRUPTING OUR STATE MR COOK SAID EITHER WE TOOK THIS OPTION OR WE WENT BELLY UP SIMILAR PRESSURES ARE BEING FELT BY MR CLINTON THE PRESIDENT WANTS TO FOSTER COMPETITION IN THE HEALTHCARE MARKET BY ESTABLISHING LARGE PURCHASING AGENTS TO SHOP FOR THE BEST HEALTH COVERAGE ON BEHALF OF BUSINESSES AND INDIVIDUALS AT THE SAME TIME HE WANTS TO SET AN OVERALL LIMIT ON NATIONAL HEALTH SPENDING AND IS CONSIDERING IMPOSING TEMPORARY GOVERNMENT CONTROLS ON MEDICAL PRICES WHILE A NEW HEALTH SYSTEM IS GETTING ON ITS FEET FLORIDA'S PROGRAM WHILE NEITHER IMPOSING PRICE CONTROLS NOR MANDATING THAT EMPLOYERS PARTICIPATE DOES TAKE THE LARGE STEP OF SETTING UP 11 REGIONAL BOARDS CALLED COMMUNITY HEALTH PURCHASING ALLIANCES TO NEGOTIATE WITH INSURERS AND MEDICAL PROVIDERS EACH BOARD WILL HAVE 17 GOVERNMENTAPPOINTED MEMBERS 11 BUSINESSES AND SIX CONSUMERS BASED IN AREAS CORRESPONDING ROUGHLY TO THE STATE'S 11 LARGEST CITIES THE BOARDS ARE SCHEDULED TO BE UP AND RUNNING BY JULY BY YEAR END SOME OF THE BOARDS WILL HAVE COMPLETED TALKS WITH INSURERS HOSPITALS AND DOCTORS AND WILL BE ABLE TO OFFER SEVERAL TYPES OF MEDICAL PLANS INCLUDING HEALTH MAINTENANCE ORGANIZATIONS AND MORETRADITIONAL INDEMNITY PLANS TO ANY INTERESTED BUSINESS IDEALLY MANY SMALL BUSINESSES WHICH HAVE HAD LITTLE LEVERAGE IN BUYING MEDICAL COVERAGE BUT WHICH ACCOUNT FOR MORE THAN 90 OF ALL JOBS IN FLORIDA WILL AVAIL THEMSELVES OF THE ALLIANCES' BARGAINING POWER INSURANCE PREMIUMS MR COOK ESTIMATED COULD TOTAL BETWEEN 50 AND 60 A MONTH FOR A SINGLE PERSON AND HOPEFULLY UNDER 100 FOR A FAMILY OF FOUR EMPLOYERS HE ADDED WILL IDEALLY CONTRIBUTE AT LEAST 50 OF THE COST WHILE BUSINESS INTERESTS WERE THE PRIMARY SUPPORTERS OF THE LEGISLATION AND MEDICAL INTERESTS THE MAJOR OPPONENTS FLORIDA REJECTED THE IDEA OF REQUIRING EMPLOYERS TO PARTICIPATE WE FIRST HAVE TO ENSURE THAT COVERAGE IS AFFORDABLE AND ACCESSIBLE MR COOK EXPLAINED OTHERWISE YOU CAN END UP BREAKING A BUSINESS FLORIDA HOPES THAT ITS EXPERIMENT WILL GET A BOOST FROM THE FEDERAL GOVERNMENT MR COOK SAID PERHAPS IN THE FORM OF INCREASED STATE CONTROL OVER PROGRAMS SUCH AS MEDICAID MORE IMPORTANT HE ADDED MAY BE FLORIDA'S ABILITY TO SET AN EXAMPLE FOR OTHER STATES CONSIDERING SIMILAR MEASURES ULTIMATELY YOU WON'T REFORM HEALTH CARE FROM THE TOP DOWN YOU'LL REFORM IT FROM THE BOTTOM UP MR COOK SAID STATES HAVE TO GET INVOLVED AND GET THEIR NOSES BLOODIED OTHERWISE YOU'RE STILL ON A RUNAWAY TRAIN SEE RELATED LETTER LETTERS TO THE EDITOR A HEALTH CARE REFORM THAT'S RIPE FOR ABUSE WSJ MAY 17 1993 9304050180 YY93 MM05 9305170048 930326 REVIEW & OUTLOOK EDITORIAL CROSSING THE ESTABLISHMENT LINDA CROSS IS PLAYING DAVID IN A CONTEST WITH THE GOLIATHS OF THE EDUCATIONAL BUREAUCRACY MS CROSS A PUBLIC HIGH SCHOOL ENGLISH TEACHER STUNNED POLITICIANS IN WISCONSIN LAST MONTH WHEN SHE WON A SPOT IN THE RUNOFF FOR STATE SUPERINTENDENT OF PUBLIC INSTRUCTION SHE VOWS TO PUSH FOR PRIVATE SCHOOL CHOICE IF SHE IS ELECTED ON APRIL 6 POLLS SHOW HER RUNNING EVEN NATURALLY THE TEACHERS UNIONS HAVE DECLARED HER PUBLIC ENEMY NO 1 MS CROSS WHO TEACHES IN THE SMALL TOWN OF HORTONVILLE IS ONE OF A GROWING NUMBER OF PUBLIC SCHOOL TEACHERS WHO BELIEVE AMERICA'S EDUCATIONAL CRISIS REQUIRES MORE THAN BANDAID SOLUTIONS SHE WANTS PARENTS AND TEACHERS TO HAVE MORE OF A SAY IN THE RUNNING OF SCHOOLS AND WANTS BUREAUCRATS MOVED TO THE BACK OF THE BUS GIVEN AN UNYIELDING ESTABLISHMENT SCHOOL CHOICE IS THE FASTEST AND BEST WAY TO ACHIEVE THAT AND INCREASE PARENTS' INVOLVEMENT IN THE EDUCATION OF THEIR CHILDREN THAT SIMPLE MESSAGE AND A CAMPAIGN TREASURY OF ONLY 12000 CATAPULTED LINDA CROSS INTO A STRONG SECONDPLACE SHOWING IN THE RACE TO REPLACE THE INCUMBENT SUPERINTENDENT HERBERT GROVER HE HAS BEEN A VOCIFEROUS OPPONENT OF POLLY WILLIAMS THE BLACK STATE LEGISLATOR WHO SET UP THE NATION'S FIRST PRIVATE SCHOOL CHOICE PROGRAM IN MILWAUKEE MS CROSS'S OPPONENT IS JOHN T BENSON A SCHOOL SUPERINTENDENT WHO EARLIER SPENT EIGHT YEARS WORKING IN THE STATE EDUCATIONAL BUREAUCRACY HE IS BACKED BY THE WISCONSIN EDUCATION ASSOCIATION COUNSEL WEAC THE STATE'S MOST POWERFUL TEACHERS UNION WHICH HELPED HIM RAISE MORE THAN 70000 IN THE PRIMARY MR BENSON HAS ACCUSED MS CROSS OF HAVING A DIVISIVE APPROACH TO EDUCATION LINDA WHY ARE YOU SO OPPOSED TO TEACHERS HE ASKED HER IN A RECENT DEBATE I'M NOT SHE RESPONDED MANY TEACHERS SUPPORT ME BECAUSE I DON'T THINK WEAC REPRESENTS THEIR INTERESTS THE UNION HAS A RIGHT TO BE HEARD BUT NOT TO PERPETUATE A MONOPOLY IN EDUCATION A SHIFT IN PUBLIC ATTITUDES IS CLEARLY TAKING PLACE IN WISCONSIN THE SAME DAY THAT MS CROSS CAME WITHIN A FEW THOUSAND VOTES OF MR BENSON MILWAUKEE VOTERS TURNED DOWN A 500 MILLION BOND ISSUE TO PAY FOR SCHOOL IMPROVEMENTS EVERY BUSINESS AND POLITICAL FIGURE IN THE CITY EXCEPT FOR POLLY WILLIAMS SUPPORTED THE BONDS YET 76 OF MILWAUKEE VOTERS REJECTED THEM JOINING MANY SUBURBAN TOWNS IN VOTING AGAINST THROWING MORE DOLLARS INTO THE EDUCATIONAL MONEY PIT PARENTS WANT TO SEE REAL REFORM FIRST SAYS POLLY WILLIAMS WE HAVE BEEN FOOLED TOO OFTEN IN THE PAST THE SCHOOL BOARD HOPES TO FLOAT A SMALLER BOND ISSUE SOON BUT IT IS ALSO TALKING WITH EDUCATIONAL ALTERNATIVES INC A FLORIDABASED COMPANY THAT HAS TAKEN OVER THE MANAGEMENT OF SCHOOLS IN MARYLAND AND MINNESOTA POLLY'S CHOICE PROGRAM THE LOCAL TAX REVOLT AND CROSS'S SHOWING MAY BE FORCING THE BUREAUCRACY TO CONSIDER SOME ALTERNATIVES SAYS DALE BUSS A FORMER BUSINESS EDITOR OF THE MILWAUKEE JOURNAL MICHAEL JOYCE THE PRESIDENT OF MILWAUKEE'S BRADLEY FOUNDATION SAYS THAT IF MS CROSS SHOULD WIN IT WOULD SEND A CLEAR MESSAGE THROUGHOUT WISCONSIN AND THE NATION THAT THE PUBLIC IS NOW DEMANDING REAL CHANGE IF SHE CAN WIN IN WISCONSIN DESPITE EVERYTHING THEY THROW AT HER THEN A REFORM CANDIDATE CAN WIN ANYWHERE IN THE COUNTRY HE SAYS SEE RELATED LETTERS LETTERS TO THE EDITOR VOUCHERS OFFER A CHOICE OF PROBLEMS WSJ MAY 17 1993 9303260103 YY93 MM05 9305170024 930331 YOUR MONEY MATTERS HOW TO SPLIT THE TAX BILL WITH YOUR SPOUSE BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL NOT ALL MARRIED COUPLES BLEND THEIR NAMES OR THEIR TAX BILLS INCREASINGLY MANY WORKING COUPLES WANT TO KEEP THEIR FINANCES SEPARATE AND WITH THE APRIL 15 FILING DEADLINE FAST APPROACHING THAT MEANS FINDING A WAY TO DIVVY UP THEIR INCOME TAX BILLS FAIRLY MORE TWOEARNER COUPLES WANT TO KNOW WHAT PERCENTAGE OF THE TAX BILL BELONGS TO EACH OF THEM SAYS ROBERT M SPECTOR A TAX ATTORNEY WITH IDS TAX & BUSINESS SERVICES IN MINNEAPOLIS THESE TAXPAYERS ARE PROBABLY STILL IN THE MINORITY TYPICALLY MARRIED COUPLES SIMPLY SPLIT THE TAX OWED BY WRITING A CHECK ON THEIR JOINT ACCOUNT IF THERE'S A REFUND IT GOES INTO THE JOINT ACCOUNT MANY TAX PROFESSIONALS AT THE MAJOR ACCOUNTING FIRMS FEEL THAT COUPLES WHO EVEN RAISE THE QUESTION OF HOW TO SPLIT THE TAX LIABILITY ARE BETRAYING SIGNS OF A SHAKY MARRIAGE YUPPY GREED OR WORSE BUT THEIR CLIENTS TEND TO BE WEALTHY TAXPAYERS FROM TRADITIONAL FAMILIES WITH ONE WAGE EARNER TYPICALLY MALE TAX SPECIALISTS WITH CLIENTS FROM NONTRADITIONAL FAMILIES WHICH NOW INCLUDE THE MAJORITY OF TAXPAYERS SAY THEY ARE HEARING THE QUESTION MORE AND MORE A LOT OF THESE COUPLES FEEL THAT MAINTAINING SEPARATE SAVINGS AND DISCRETION OVER THEIR EARNINGS AND SPENDING PLAYS AN IMPORTANT PART IN KEEPING THEIR MARRIAGES HAPPY FOR THEM ALLOCATING TAX LIABILITY SEEMS THE FAIREST WAY TO GO WHY IN COUPLES WITH BIG DISPARITIES IN INCOME USING THE JOINTACCOUNT APPROACH OFTEN CAUSES THE LOWERPAID INDIVIDUAL TO PAY SOME OF THE HIGHERPAID PERSON'S TAX LIABILITY GENERALLY THAT MEANS THE WIFE MARRIED WOMEN MAY ALSO PAY MORE THAN THEIR SHARE OF THE FAMILY INCOME TAX BECAUSE MEN TEND TO BE UNDERWITHHELD AND WOMEN OVERWITHHELD TAX EXPERTS SAY STUART KESSLER CHAIRMAN OF THE PERSONAL FINANCIAL PLANNING DIVISION OF THE AMERICAN SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS SAYS THAT AT HIS FIRM QUESTIONS ABOUT SPLITTING THE TAX LIABILITY COME MOST OFTEN FROM COUPLES IN SECOND MARRIAGES AT IDS IT'S YOUNG PROFESSIONALS SAYS MR SPECTOR THIS IS THEIR ISSUE HE SAYS IT'S GOING TO BECOME A HOTTER ISSUE UNFORTUNATELY COUPLES WHO WANT TO DIVIDE THE TAX LIABILITY EQUITABLY DON'T GET MUCH HELP TAX PREPARATION BOOKS AND SOFTWARE ARE SILENT ON THE ISSUE AND TAX PARTNERS AT MAJOR ACCOUNTING FIRMS SAY CLIENTS NEVER ASK THERE ARE PROBABLY SEVERAL FAIR APPROACHES THAT COUPLES COULD USE BUT MR SPECTOR SUGGESTS COUPLES FIRST CALCULATE WHAT EACH WOULD OWE IF THEY COULD FILE AS SINGLE TAXPAYERS THEN THEY NEED TO CALCULATE WHAT THEY ACTUALLY OWE AS A MARRIED COUPLE USUALLY TWOEARNER MARRIED COUPLES WILL OWE MORE THAN THE TOTAL EACH WOULD OWE IF THEY COULD FILE AS SINGLES FOR EXAMPLE NICK WHO EARNS 110000 WOULD OWE 24929 IN INCOME TAX AS A SINGLE FILER NORA EARNING 70000 WOULD OWE 13077 FILING JOINTLY THEIR TAX BILL IS 40327 THIS IS 2321 MORE THAN WHAT THEY WOULD PAY TOTALLY IF EACH FILED SINGLE THE NEXT STEP IS TO FIGURE OUT WHAT PERCENTAGE OF THE TOTAL TAX INCLUDING THIS EXTRA MARRIAGE TAX EACH OWES TO DO SO THEY SIMPLY DIVIDE EACH INDIVIDUAL'S SALARY BY THE COUPLE'S SALARY AND MULTIPLY THE RESULT BY THE EXTRA TAX THEY PAY BECAUSE THEY ARE MARRIED FOR EXAMPLE NICK'S SALARY 110000 DIVIDED BY THEIR COMBINED INCOME 180000 MULTIPLIED BY THE MARRIAGE PENALTY 2321 EQUALS HIS SHARE OF THE EXTRA MARRIAGE TAX 1418 NORA'S SHARE IS 903 THEN EACH ADDS HIS OR HER MARRIAGE TAX SHARE TO THE AMOUNT THEY WOULD OWE AS SINGLE FILERS IN NICK'S CASE THIS COMES TO 26347 NORA'S TAX COMES TO 13980 THESE AMOUNTS REPRESENT WHAT EACH OWES OF THE TOTAL TAX DUE WHICH IS 40327 NOW THEY CHECK THEIR W2 TO SEE WHAT THEY ACTUALLY HAD WITHHELD NICK WHO WAS SLIGHTLY UNDERWITHHELD PAID 23345 NORA SLIGHTLY OVERWITHHELD PAID 15177 THIS MEANS THAT THE COUPLE OWES THE INTERNAL REVENUE SERVICE AN ADDITIONAL 1805 IF THEY MERELY SPLIT THE BILL EACH WILL PAY 903 BUT SINCE THIS EXERCISE SHOWS THAT NICK OWES A GREATER SHARE THAN HE PAID AND THAT NORA OVERPAID HE PAYS THE IRS 1805 HE ALSO GIVES NORA A CHECK FOR 1197 SINCE THIS REPRESENTS THE SHARE OF HIS TAXES THAT SHE PAID OF COURSE LARGE DEDUCTIONS AND CONTRIBUTIONS TO KEOGHS AND RETIREMENT PLANS CAN SKEW THIS FORMULA BUT MR KESSLER SAYS HE TELLS CLIENTS THAT IN MOST CASES IT USUALLY ISN'T WORTH TRYING TO BE PRECISE TO DO THIS ACCURATELY IT CAN COST YOU MORE IN ACCOUNTING FEES THAN IT'S WORTH WHAT WOULD HAPPEN IF A MARRIED COUPLE SIMPLY FILED SEPARATE RETURNS INSTEAD OF A JOINT RETURN THIS COULD BE A GOOD IDEA FOR COUPLES WHO CAN'T AGREE ON HOW TO ALLOCATE THEIR TAX LIABILITY AND CONTRARY TO POPULAR PERCEPTION FILING SEPARATE INSTEAD OF JOINT RETURNS DOESN'T NECESSARILY MEAN A BIGGER TOTAL TAX BILL MR SPECTOR CALCULATES THAT FILING MARRIEDSEPARATE NICK WOULD OWE 26468 AND NORA WOULD OWE 13959 THE COUPLE'S TOTAL TAX LIABILITY IS ONLY 100 MORE THAN IT IS FILING A JOINT RETURN SURPRISINGLY NICK OWES 121 MORE THAN IF THEY FILED JOINTLY AND ALLOCATED AND NORA OWES 21 LESS DOING ALL THIS FIGURING MAY SEEM ONEROUS BUT IT'S NOT REALLY THAT DIFFICULT IF YOU OR YOUR ACCOUNTANT USES TAX SOFTWARE EVEN IF COUPLES HAVE ALREADY FILED THIS YEAR THEY COULD DO THIS EXERCISE TO SEE WHO OVERPAID SEE RELATED LETTER LETTERS TO THE EDITOR MARRIAGE' TAXES WSJ MAY 17 1993 9303310064 YY93 MM05 9305140183 930514 ANTITRUST LAWS ROIL WORLD OF HEALING MEDICINE REGULATORS AIM AT FEES DOCTORS CHARGE HMOS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL SOME LONGSIMMERING TENSIONS BETWEEN DOCTORS AND HEALTHMAINTENANCE ORGANIZATIONS ARE THREATENING TO TURN INTO AN ANTITRUST BATTLEGROUND DOCTORS AND HEALTHPLAN EXECUTIVES SAY HMOS ARE WIELDING GREATER POWER AS THEY RECRUIT PHYSICIANS TO TREAT PATIENTS AT SIZABLE DISCOUNTS FROM STANDARD FEES SUCH CUTPRICE DOCTOR NETWORKS ARE AN ESSENTIAL PART OF HMOS WHICH PROVIDE COMPREHENSIVE HEALTH CARE TO GROUPS OF WORKERS FOR A FIXED MONTHLY RATE BUT THE HMOS' INCREASED CLOUT IS TROUBLING SOME DOCTORS IN SUCH FIELDS AS OBSTETRICS DENTISTRY AND GENERAL SURGERY HMOS OFTEN HAVE BEEN ABLE TO SET THEIR REIMBURSEMENT RATES FOR DOCTORS AT LEAST 25 BELOW STANDARD FEE SCHEDULES AS A RESULT SOME DOCTORS HAVE TRIED TO BAND TOGETHER AND FORM A UNITED NEGOTIATING FRONT SO THEY CAN PROTECT THEIR RATES AGAINST PRICE CUTTING BY HMOS SUCH ACTION BY DOCTORS DOESN'T SIT WELL WITH FEDERAL ANTITRUST REGULATORS IN A SERIES OF RECENT CASES THE JUSTICE DEPARTMENT AND THE FEDERAL TRADE COMMISSION HAVE TAKEN AIM AT GROUPS OF DOCTORS THAT ALLEGEDLY ENGAGED IN ANTICOMPETITIVE BEHAVIOR SUCH AS PRICE FIXING OR A MASS REFUSAL TO PROVIDE SERVICES TO CERTAIN HMOS ANTITRUST REGULATORS ARE SIGNALING THAT THEY ARE PREPARED FOR LOTS MORE HMO/DOCTOR CASES ESPECIALLY IF THE CLINTON ADMINISTRATION PUSHES AHEAD WITH HEALTHCARE REFORMS THAT EMPHASIZE THE ROLE OF HMOS AND OTHER MANAGEDCARE SYSTEMS IN SENATE TESTIMONY LAST WEEK JAMES EGAN HEAD OF LITIGATION FOR THE FTC'S BUREAU OF COMPETITION SAID ANTITRUST ENFORCEMENT HAS BEEN INSTRUMENTAL IN CLEARING THE WAY FOR MANAGEDCARE PLANS TO OPERATE IN THE FACE OF DOCTORS' OPPOSITION HE ADDED CONTINUED SOUND ANTITRUST ENFORCEMENT SEEMS LIKELY TO BE IMPORTANT TO THE SUCCESS OF ANY COMPETITIONBASED MODEL FOR HEALTH CARE REFORM HMOS PORTRAY THEMSELVES AS THE VULNERABLE ONES NEEDING FEDERAL ANTITRUST SUPPORT WHAT'S DISTURBING TO ME IS A PUSH BY PROVIDERS TO BAND TOGETHER AND EXCLUDE MANAGED CARE SAYS DAVID SIMON GENERAL COUNSEL OF US HEALTHCARE CORP AN HMO BASED IN BLUE BELL PA I BELIEVE THE JUSTICE DEPARTMENT IS GETTING MORE AGGRESSIVE IN TRYING TO FIND OUT ABOUT THESE ISSUES AND PURSUE THEM MR SIMON SAYS BUT HE CONTENDS THAT IT'S DIFFICULT TO CATCH DOCTORS IN THE MIDST OF ANTICOMPETITIVE PLOTTING NOTHING IS DONE OVERTLY MR SIMON ASSERTS IT'S DONE QUIETLY IN HOSPITAL CAFETERIAS DOCTORS AND THEIR LAWYERS CONTEND THAT THE BALANCE OF PRICENEGOTIATING POWER HAS SHIFTED TOO FAR TOWARD HMOS WE WANT AN ABILITY FOR PHYSICIANS TO HAVE VIABLE COLLECTIVE NEGOTIATIONS WITH HMOS SO WE CAN HAVE A LEVEL PLAYING FIELD SAYS KIRK JOHNSON CHIEF LEGAL COUNSEL FOR THE AMERICAN MEDICAL ASSOCIATION WE AREN'T TALKING ABOUT AN ABILITY FOR DOCTORS TO BOYCOTT OR ENGAGE IN PRICE FIXING WE'RE JUST TALKING ABOUT FAIRNESS HEALTH PLANS NOW ARE ABLE TO SPEAK FOR HUNDREDS OF THOUSANDS OF PEOPLE MR JOHNSON SAYS MAYBE PROFESSIONALS OUGHT TO BE ABLE TO RESPOND TO THAT IN A COLLECTIVE WAY THE CURRENT DISPARITY IN WHICH HEALTH PLANS CAN USE THEIR MARKET CLOUT BUT DOCTORS CAN'T IS VERY DISTURBING HE SAYS ANTITRUST CASES SO FAR PROVIDE SOME SUPPORT FOR BOTH SIDES IN AT LEAST FIVE INSTANCES SINCE 1990 THE JUSTICE DEPARTMENT OR THE FTC HAS WON EITHER COURT VERDICTS OR SETTLEMENTS THAT HAVE BARRED DOCTOR GROUPS FROM ANTICOMPETITIVE PRACTICES THE CASES RANGE FROM ALLEGED PRICE FIXING BY MASSACHUSETTS ALLERGISTS TO AN ALLEGED BOYCOTT OF AN UNPOPULAR HMO BY FLORIDA OBSTETRICIANS BUT SEVERAL CASES ALSO PROTECT DOCTORS' RIGHTS TO SPEAK OUT ABOUT HMO PRICING PROVIDED THE DOCTORS DON'T PUSH THEIR POINTS TOO HARD WE WANTED TO ESTABLISH SOME SAFE HARBORS FOR PHYSICIANS WHERE THEY CAN MAKE SUGGESTIONS ON PRICING AS LONG AS THEY DON'T THREATEN A BOYCOTT SAYS DANIEL GOLDBERG AN ATTORNEY FOR THE 57MEMBER MASSACHUSETTS ALLERGISTS' SOCIETY IN A SETTLEMENT LAST SEPTEMBER OF THE MASSACHUSETTS CASE THE ALLERGISTS LARGELY HELD THEIR GROUND FEDERAL ANTITRUST REGULATORS AGREED THAT THE STATE ALLERGISTS' SOCIETY COULD PROPOSE NEW FEE SCHEDULES TO HMOS AS LONG AS THE SOCIETY EXPRESSLY STATES THAT THE PAYER ISN'T REQUIRED TO ACCEPT OR ADOPT THE INFORMATION IN MANY CASES MEDICAL PRACTITIONERS SAY THEY NEED A WAY TO RESPOND TO PROPOSED HMO PAY SCALES THAT ARE AT LEAST 20 AND SOMETIMES AS MUCH AS 75 BELOW DOCTORS' REGULAR FEES A FEW YEARS AGO FOR EXAMPLE DENTISTS IN TUCSON ARIZ PRESSED THE LOCAL PREPAID DENTAL PLANS TO RAISE THE AMOUNTS THAT PATIENTS WOULD NEED TO PAY FOR CROWNS AND ROOT CANALS IN 198687 RECALLS DENTIST LANOY ALSTON SEVERAL DENTAL PLANS PROVIDED FOR ONLY A 109 PAYMENT PER CROWN THAT WAS LESS THAN ONETHIRD THE GOING RATE OF 350 A CROWN IN TRADITIONAL PRIVATE PRACTICE AND DENTAL PLANS WEREN'T OFFERING ANY INCREASES EVEN THOUGH DENTISTS' COSTS FOR STERILIZATION AND OTHER SERVICES WERE MOUNTING DR ALSTON LED A CAMPAIGN SEEKING A 140PERCROWN REIMBURSEMENT RATE FROM THE DENTAL PLANS AS PART OF THAT CAMPAIGN THE GOVERNMENT ALLEGED DR ALSTON AND SEVERAL OTHER DENTISTS MAILED IDENTICAL LETTERS TO DENTAL PLANS DEMANDING THAT THE PLANS AGREE TO PAY THE HIGHER RATES THOSE LETTERS BECAME IMPORTANT EVIDENCE IN A JUSTICE DEPARTMENT CASE AGAINST THE TUCSON DENTISTS DR ALSTON ULTIMATELY PLEADED NO CONTEST EARLIER THIS YEAR TO CHARGES OF CONSPIRING TO FIX PRICES HE AGREED TO PERFORM 250 HOURS OF COMMUNITY SERVICE BUT DR ALSTON'S FRUSTRATION WITH THE DENTAL PLANS' LOW REIMBURSEMENT RATES APPARENTLY IMPRESSED A FEDERAL APPEALS COURT THAT REVIEWED THE CASE IN A SECTION OF ITS OPINION GOING BEYOND THE FACTS AT HAND THE COURT SET FORTH SOME WAYS THAT GROUPS OF DOCTORS COULD ADDRESS HMO PRICING WITHOUT NECESSARILY BEING IN VIOLATION OF ANTITRUST LAWS AMONG THE STEPS THAT MIGHT BE PERMISSIBLE THE APPEALS COURT SAID ARE COSTDATA SHARING BY DOCTORS COMMISERATING WITH ONE ANOTHER OVER LOW FEES AND SABER RATTLING ABOUT ECONOMIC RETRIBUTION AT SOME INDEFINITE TIME IN THE FUTURE IF THEIR GRIEVANCES REMAIN UNADDRESSED WHILE LAWYERS ON BOTH SIDES OF THE HMO/DOCTOR BATTLE ARE INTRIGUED BY THE STANDARDS SET FORTH IN THE ALSTON OPINION MOST LAWYERS CAUTION THAT THE FIELD REMAINS IN FLUX ANYONE WHO THINKS DOCTORS NOW HAVE A FREE HAND TO DEAL WITH PAYERS AS THEY WISH WILL LIKELY FIND THIS IDEA A PRESCRIPTION FOR TROUBLE SAYS ROBERT BLOCH A LAWYER IN THE WASHINGTON OFFICE OF MAYER BROWN & PLATT MR BLOCH UNTIL A FEW MONTHS AGO WAS IN CHARGE OF HEALTHCARE ANTITRUST INVESTIGATIONS FOR THE JUSTICE DEPARTMENT WITH MANY ANTITRUST ISSUES YET TO BE THRASHED OUT MOST DOCTOR/HMO DISPUTES ARE BEING SETTLED IN CASEBYCASE COMPROMISES IN DECEMBER 1991 FOR EXAMPLE 23 OBSTETRICIANS IN JACKSONVILLE FLA SETTLED ANTITRUST CHARGES WITH THE FTC AND AGREED TO DISBAND THEIR JOINT MARKETING ASSOCIATION THE OBSTETRICIANS HAD PRESSED FOR HIGHER RATES FROM A LOCAL HMO WHICH WAS PAYING ABOUT 1400 PER DELIVERY COMPARED WITH TYPICAL RATES OF ABOUT 1800 IN THE REGION MEANWHILE A GROUP OF 670 DOCTORS IN THE BRIDGEPORT CONN AREA IN SEPTEMBER SETTLED AN ANTITRUST CASE WITH THE JUSTICE DEPARTMENT WITHOUT AGREEING TO DISBAND IN AN EFFORT TO BOOST PRICES THE CONNECTICUT GROUP HAD DISCOURAGED INDIVIDUAL MEMBERS FROM NEGOTIATING WITH A MAJOR HMO MOST OF THE SETTLEMENT THOUGH SIMPLY REQUIRED THE CONNECTICUT GROUP TO PROMISE IT WOULDN'T USE SUCH TACTICS AGAIN IN ONE SIGN OF HOW ANXIOUS DOCTORS ARE ABOUT ANTITRUST LAW DR ALSTON THE TUCSON DENTIST FINDS HE IS GETTING A LOT OF PHONE CALLS ASKING FOR LEGAL ADVICE THE AMERICAN MEDICAL ASSOCIATION CALLED HE SAYS THE AMERICAN DENTAL ASSOCIATION CALLED IN THE MEDICAL FIELD PEOPLE ARE JUST STARTING TO REALIZE WHAT ALL THESE ANTITRUST ISSUES MEAN US VS AARON LANOY ALSTON ET AL ARIZONA DENTISTS WERE ACCUSED OF CONSPIRING TO FIX PRICES LEAD DEFENDANT PLEADED NO CONTEST IN JANUARY 1993 US VS MASSACHUSETTS ALLERGY SOCIETY SOCIETY WAS ACCUSED OF CONSPIRING TO FIX PRICES PAID BY HMO IT SETTLED CASE IN 1992 BY ACCEPTING LIMITS ON ITS NEGOTIATION TACTICS IN RE SOUTHBANK IPA JACKSONVILLE FLA OBSTETRICIANS WERE INVESTIGATED BY FTC ON CHARGES OF ANTICOMPETITIVE BEHAVIOR THEY SETTLED CASE IN 1991 AND AGREED TO DISBAND JOINT MARKETING GROUP SEE RELATED STORY LAW LEGAL BEAT NEW RULES LET HOSPITALS START JOINT VENTURES WSJ MAY 14 1993 9305140182 930514 INTERNATIONAL BULGARIA'S ONCEFEARED STRONGMAN LOOKS BACK ON REIGN WITH BITTERNESS BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL SOFIA BULGARIA THE ELDERLY MAN WHO OPENS THE WOODEN DOOR OF THE HILLSIDE VILLA IS STOOPED AND SHRIVELED FOLLOWED BY A COCKER SPANIEL HE SHUFFLES ONTO THE BALCONY IN HIS SLIPPERS TO ADMIRE THE VIEW IT'S A BUCOLIC SCENE IN THE GATHERING DUSK EXCEPT FOR TWO GRIM POLICE GUARDS IN BLACK LEATHER JACKETS HOVERING NEARBY WHO DISTURB THE MUSINGS OF THE FORMER COMMUNIST DICTATOR YOU MIGHT HAVE HEARD OF A MAN NAMED TODOR ZHIVKOV WHO WAS ONCE AN IMPORTANT HEAD OF STATE THE MAN SAYS SPEAKING OF HIMSELF IN THE THIRD PERSON NOW ZHIVKOV IS ACCUSED BY HIS ENEMIES AND POLITICAL OPPONENTS OF ALL SORTS OF EARTHLY SINS HE CONTINUES WHAT MORE DO YOU WANT TO KNOW I CAN'T TELL YOU MUCH BECAUSE MY MOUTH AND HANDS ARE TIED IT IS HARD TO IMAGINE THAT THIS FRAIL FIGURE WAS ONCE EASTERN EUROPE'S LONGESTSERVING AND SOME SAY MOST FEARED COMMUNIST LEADER FOR 35 YEARS UNTIL HE WAS TOPPLED IN 1989 BY REFORMERS WHO ENGINEERED A COMMUNIST PARTY PALACE COUP MR ZHIVKOV AND HIS LACKEYS BACKED BY THE SECRET POLICE AND MOSCOW RULED BULGARIA THEY PRESIDED OVER ITS ECONOMIC DECLINE INTO A SQUALID BALKAN BACKWATER TODAY MR ZHIVKOV 81 YEARS OLD IS UNDER HOUSE ARREST AFTER BEING FOUND GUILTY OF EMBEZZLEMENT MISAPPROPRIATING STATE FUNDS AND HANDING OUT APARTMENTS HOLIDAY HOMES AND CARS TO CRONIES FOR FREE OR ROCKBOTTOM PRICES HE LIVES AT HIS GRANDDAUGHTER'S SWANKY BY BULGARIAN STANDARDS SUBURBAN RETREAT PENDING APPEAL WHILE LEGAL AUTHORITIES HAGGLE OVER HIS SENTENCE OF SEVEN YEARS IN PRISON AND A 1 MILLION FINE MR ZHIVKOV ALONG WITH MANY ORDINARY BULGARIANS IS DOING SOME SOULSEARCHING ABOUT SOCIALISM'S LEGACY IT ISN'T EASY TO UNRAVEL COMMUNISM'S HISTORY IS STILL CLOAKED IN SECRECY DISINFORMATION IS RIFE HOW CAN ANYONE FOR EXAMPLE PROVE THAT MR ZHIVKOV SUCKED THE STATE COFFERS DRY WHEN OFFICIAL DOCUMENTS SHOW HE EARNED ONLY 80 A MONTH AS BULGARIA'S HEAD OF STATE AND PARTY GENERAL SECRETARY NOT ONLY IS HE INNOCENT OF CHARGES OF HAVING LIVED LAVISHLY AT THE PEOPLE'S EXPENSE HE GRUMBLES BUT HE IS ALSO A VIRTUAL PAUPER LOOK AT ME I DON'T HAVE ANYTHING HE COMPLAINS HIS VOICE BEGGING FOR SYMPATHY I WEAR OLD CLOTHES AND LIVE ON A PENSION OF 44 A MONTH THAT'S NOT EVEN ENOUGH TO PAY FOR MY MEDICINE PEOPLE SAY I'VE STASHED AWAY ASSETS IN SWITZERLAND AND IN CANADA BUT I DON'T HAVE ONE DOLLAR NOT ONE LEV THE BULGARIAN CURRENCY I DON'T EVEN HAVE A BICYCLE BY ALL ACCOUNTS MR ZHIVKOV AND HIS FRIENDS LIVED VERY WELL WHILE MOST BULGARIANS BARELY SCRAPED BY SEVEN OF HIS ESTIMATED 30 STATE RESIDENCES COMPLETE WITH GARDENS AND HELICOPTER LANDING PADS AND OUTFITTED WITH SAUNAS AND HEATED INDOOR SWIMMING POOLS WERE EASILY CONVERTED INTO TOURIST HOTELS DON'T EVEN TRY TO COMPARE HOW THE ZHIVKOV CLAN AND WE LIVED SAYS NEDYALKA SANDALSKA VICE PRESIDENT OF THE STATE TOURIST BOARD THAT CLAIMED THE PROPERTIES WHEN MR ZHIVKOV FELL BULGARIANS FACED EMPTY SHOPS AND AN ECONOMIC CRISIS BUT NEWSPAPERS REPORTED THE EXISTENCE OF 1500 ZHIVKOVITE DOLLAR MILLIONAIRES FOR DECADES HE GOVERNED WITH AN IRON FIST RUTHLESSLY STAMPING OUT ALL OPPOSITION WHETHER AT HOME OR ABROAD THE EXILED DISSIDENT WRITER GEORGI MARKOV WAS MURDERED BY BULGARIAN SECRET SERVICE AGENTS WHO JABBED HIM IN THE LEG WITH A POISONED UMBRELLA ON A BUSY LONDON STREET MR ZHIVKOV DENIES ALL THIS EVER HAPPENED WE DID HAVE A POLICE FORCE WITHIN THE INTERIOR MINISTRY BUT COMPARED TO THE CIA OR KGB THIS WAS JUST A DROP IN THE BUCKET HE EXPLAINS POURING COFFEE WITH TREMBLING HANDS AND PASSING AROUND A PLATE OF COOKIES LOOKING BACK ON HIS YEARS IN POWER MR ZHIVKOV NOW TAKES CREDIT FOR BEING THE FIRST OF THE EAST BLOC RULERS TO SEE THE FUTILITY OF THE SYSTEM THEY CREATED AFTER EXTENSIVE TRAVELS TO THE WEST HE ARGUES HE REALIZED THAT THE APPARATUS OF SOVIETSTYLE STATE COMMUNISM WAS DOOMED I WAS IMPRESSED WITH THE JAPANESE MIRACLE HE SAYS YOU WOULD HAVE TO BE A BORN IDIOT NOT TO HAVE REALIZED THAT WE THE SOCIALIST COUNTRIES WERE BEING LEFT FAR BEHIND HISTORIANS DEBATE THE MERITS OF HIS CLAIM RUMOR HAS IT THAT HE DID APPROACH LEONID BREZHNEV WITH SUCH IDEAS BUT THAT THE SOVIET LEADER NOW DEAD SIMPLY TOLD HIM TO SHUT UP MR ZHIVKOV SAYS THAT AT FIRST MIKHAIL GORBACHEV WOULDN'T LISTEN EITHER I KNEW THAT IF I CONTINUED IT WOULD MEAN MY POLITICAL DEATH HE ALLEGES IT WAS ONLY IN 1987 HOWEVER WHEN WINDS OF CHANGE WERE ALREADY BLOWING THAT MR ZHIVKOV WON BULGARIAN POLITBURO APPROVAL FOR A PLAN TO LOOSEN COMMUNIST PARTY CONTROL AND INTRODUCE MARKET REFORMS I'VE ALWAYS WORKED FOR THE GOOD OF THE COUNTRY AND TO BUILD UP SOCIETY HE INSISTS HIS VOICE RISING AS HE LEANS FORWARD IN HIS CHAIR AND SLICES THE AIR WITH HIS HAND THE BULGARIAN PEOPLE STILL RESPECT ME FOR THIS THEY WRITE ME LETTERS SAYING HOW GOOD LIFE WAS UNDER ZHIVKOV AND THE ZHIVKOVISTS MY POPULARITY RATING IS GOING UP AND THE CURRENT GOVERNMENT'S IS FALLING NOT WITH EVERYONE MR ZHIVKOV FACES POSSIBLE CHARGES OF SETTING UP CONCENTRATION CAMPS FROM 1959 TO 1962 DIVERTING MONEY TO A SECRET SOVIET SLUSH FUND AIDING TERRORIST GROUPS AND INSTIGATING AN INFAMOUS CAMPAIGN TO FORCEFULLY ASSIMILATE BULGARIA'S LARGE ETHNIC TURKISH MINORITY THEN THERE WAS THE ATTEMPTED ASSASSINATION OF POPE JOHN PAUL II AND SUSPECTED BULGARIAN GOVERNMENT COMPLICITY IN THE MURKY CONSPIRACY HE WON'T COMMENT ON THESE ACCUSATIONS AT HIS TRIAL HE REFUSED RESPONSIBILITY FOR ANYTHING SAYING THAT ALL STATE DECISIONS WERE TAKEN COLLECTIVELY AND THAT IT IS ILLEGAL TO PUT A CHIEF EXECUTIVE ON TRIAL DESPITE HARD TIMES UNDER HIS REIGN BULGARIANS HARBOR MIXED FEELINGS ABOUT MR ZHIVKOV'S TRIAL AND HOUSE ARREST THEY DANCED IN THE STREETS WHEN HE WAS OVERTHROWN TODAY THE MOOD HAS TURNED INDIFFERENT AT FIRST PEOPLE WANTED HIS HEAD SAYS A LOCAL JOURNALIST NOW EVERYONE HAS PROBLEMS JUST TO SURVIVE THEY DON'T CARE ABOUT THE PAST BUSINESSMAN LUDMIL LALOV HAS A MORE CYNICAL VIEW THE PEOPLE IN POWER TODAY ARE WORSE THAN ZHIVKOVTHEY'RE ALL ZHIVKOVS HE ASSERTS REFERRING TO A WAVE OF RECENT CORRUPTION SCANDALS MR ZHIVKOV PEERS OUT THE WINDOW THROUGH HIS THICK GLASSES IT'S QUITE AN ISOLATED LIFE HERE HE SAYS WISTFULLY FOLDING HIS HANDS AROUND HIS BELLY I DON'T SEE MANY PEOPLE ANYMORE JUST MY GRANDDAUGHTER AND THE MAID I DON'T REALLY UNDERSTAND IT BUT NOBODY COMES AROUND TO ASK MY ADVICE ABOUT ANYTHING 9305140181 930514 BRITISH LIBEL STATUTES ARE FACING REFORM HEAD OF JUDICIARY ASSERTS PLAINTIFFFRIENDLY LAWS YIELD AWARD IMBALANCES BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL LONDON TIME MAGAZINE BASED IN NEW YORK CIRCULATES FOUR MILLION OF ITS 5510000 WEEKLY COPIES IN THE US THE BRITISH CIRCULATION IS JUST 102061 YET A LIBEL SUIT FILED AGAINST THE MAGAZINE BY DUSKO DODER THE WASHINGTON POST'S FORMER MOSCOW BUREAU CHIEF NOW A FREELANCE JOURNALIST IN BELGRADE RECENTLY LANDED IN LONDON'S HIGH COURT RATHER THAN A STATESIDE COURTHOUSE HAPPENSTANCE TIME THINKS NOT WE FIND IT ODD THAT AN AMERICAN CITIZEN LIVING IN YUGOSLAVIA HAS CHOSEN TO SUE IN BRITAIN OVER A STORY WHOSE ROOTS ARE IN WASHINGTON AND THE SOVIET UNION THE MAGAZINE SAID WE BELIEVE BRITAIN WAS CHOSEN AS A FORUM BY MR DODER IN AN ATTEMPT TO IMPOSE BRITISH PRESS RESTRICTIONS ON TIME MR DODER'S LAWYERS DECLINE TO COMMENT ON THEIR CHOICE OF VENUE BUT BRITAIN'S PLAINTIFFFRIENDLY LAWS HAVE MADE LONDON THE LIBEL CAPITAL OF THE WORLD LAWSUITS HAVE BEEN FILED IN RECENT YEARS BY A WHO'S WHO IN THE FIELDS OF ENTERTAINMENT AND POLITICS INCLUDING ACTOR SYLVESTER STALLONE AUTHOR ERICA JONG THE SHEIKH OF DUBAI AND FORMER GREEK PRIME MINISTER ANDREAS PAPANDREOU IN BRITAIN A PLAINTIFF CAN COLLECT SOMETIMES ASTRONOMICAL DAMAGES UNLESS THE PUBLICATION PROVES THE TRUTH OF ITS INFORMATION IN THE US AND MOST COUNTRIES OF CONTINENTAL EUROPE BY CONTRAST THE PLAINTIFF HAS THE BURDEN OF SHOWING THE ARTICLE'S FALSITY MOST EUROPEAN COUNTRIES BUT NOT BRITAIN ALSO HAVE STRICT PERSONAL PRIVACY LAWS AND RIGHTOFREPLY STATUTES REQUIRING NEWSPAPERS TO PRINT LETTERS THE LIBEL LAW HERE IS AN ABSOLUTE MESS AND EVERYONE KNOWS IT SAID KEVIN CONWAY A LIBEL SPECIALIST AT THE LAW FIRM WRIGHT WEBB SYRETT WHOSE CLIENTS HAVE INCLUDED SEVERAL OF BRITAIN'S TABLOID NEWSPAPERS STEPS TOWARD REFORMING THAT MESS HOWEVER FINALLY ARE BEGINNING TO STIR IN BOTH PARLIAMENT AND THE JUDICIARY PROMPTED BY A GROWING PUBLIC PERCEPTION THAT THE LAW FAILS TO SERVE THE LITTLE GUY LEGAL AID IS NOT AVAILABLE FOR LIBEL SUITS WHILE IT IS ABUSED BY THE RICH AND POWERFUL TO MUZZLE DISCUSSION OF THEIR PUBLIC AND PRIVATE LIVES THE LAW SHOULD BE REASONABLY PREDICTABLE SAYS THE HEAD OF BRITAIN'S JUDICIARY LORD MACKAY THE LORD CHANCELLOR BUT LIBEL TRIALS INSTEAD ARE OFTEN CASINOLIKE AFFAIRS YIELDING GROSSLY DISPROPORTIONATE DAMAGE AWARDS RECENT VERDICTS INCLUDE 450000 704000 AGAINST A GREEK NEWSPAPER WHOSE CIRCULATION IN BRITAIN IS 50 COPIES EVEN 10 DOWNING STREET IS NOT IMMUNE TO LIBEL FEVER PRIME MINISTER JOHN MAJOR SUED TWO MAGAZINES OVER ARTICLES THAT CONTAINED DISCUSSION OF RUMORS THAT HE HAD HAD AN AFFAIR WITH A CATERER CLARE LATIMER WHO ALSO SUED AND LIBEL LAWYERS FRET THAT POLITICIANS' AFFECTION FOR THE EXISTING LIBEL LAW WILL MAKE IT VERY DIFFICULT TO REFORM THE LAW'S CORE PROBLEMS ANYTIME SOON SOME SCHOLARS SAY JURORS PUNISH NEWSPAPERS IN LIBEL SUITS TO COMPENSATE FOR BRITAIN'S LACK OF PROTECTION AGAINST INTRUSIONS ON PERSONAL PRIVACY A PARLIAMENTARY COMMITTEE IN MARCH PROPOSED CREATION OF BOTH CIVIL AND CRIMINAL PENALTIES FOR INVASION OF PRIVACY INCLUDING THE TAKING OF PHOTOGRAPHS OR MAKING RECORDINGS ON PRIVATE PROPERTY WITHOUT PERMISSION ALSO IN PARLIAMENT LIBELLAW REFORMS RECENTLY PROPOSED BY THE LORD CHANCELLOR WOULD ALLOW MANY CASES TO BE HEARD BY A JUDGE INSTEAD OF A JURY THE JUDGE WOULD PRESUMABLY TAKE INTO ACCOUNT MITIGATING FACTORS JURIES NOW AWARD DAMAGES IN A VACUUM WITH NO SHOWING OF SPECIFIC DAMAGE SUCH AS A LOSS OF BUSINESS CLIENTS REQUIRED AND THE JUDGE ISN'T ABLE TO PROVIDE JURORS WITH DETAILED GUIDANCE FOR REACHING A DAMAGE FIGURE IN THE COURTS MEANWHILE A SIGNIFICANT DECISION WAS ISSUED IN FEBRUARY WHEN THE HIGH COURT RULED THAT LOCAL GOVERNMENTS AND NATIONAL GOVERNMENT DEPARTMENTS CAN'T SUE FOR LIBEL ELECTED LOCAL AUTHORITIES MUST BE OPEN TO UNINHIBITED PUBLIC CRITICISM THE COURT SAID AND ALLOWING THEM TO SUE FOR LIBEL WOULD PLACE AN UNDESIRABLE FETTER ON FREEDOM OF THE PRESS THE STATUTORY REFORM PROPOSALS AND THE HIGH COURT RULING WHILE UNRELATED MARK PARALLEL STEPS IN THE DIRECTION OF TWO PRINCIPLES LONG ENSHRINED IN US LIBEL LAW BUT SHUNNED IN BRITAIN GREATER PRESS PROTECTION FOR THE REPORTING OF PUBLIC ISSUES AND RECOGNITION OF THE DIFFERENCE IN CERTAIN CIRCUMSTANCES BETWEEN AN HONEST MISTAKE AND DELIBERATE OR RECKLESS FALSEHOOD THE LORD CHANCELLOR'S PROPOSALS WOULD ALLOW A PUBLISHER TO MAKE AN OFFER OF AMENDS ADMITTING A DAMAGING STATEMENT WAS PUBLISHED BUT THAT IT WAS DONE SO MISTAKENLY THE PUBLISHER MUST AGREE TO PAY DAMAGES AS SET BY A JUDGE THE PROCEDURE WOULDN'T BE FOLLOWED HOWEVER IF THE DEFAMED PERSON COULD PROVE THAT FALSE INFORMATION WAS KNOWINGLY OR RECKLESSLY PUBLISHED THE RECENT EVENTS HOWEVER STILL FAIL TO ADDRESS THE BURDENOFPROOF ISSUE THAT LURES LIBEL LAWSUITS TO THE ROYAL COURTS OF JUSTICE ON THE EDGE OF FLEET STREET BRITAIN'S ONCE LEGENDARY NEWSPAPER ROW PERHAPS 90 OF CASES ARE SETTLED OUT OF COURT BECAUSE IT IS DIFFICULT AND COSTLY FOR PUBLISHERS TO PROVE THE TRUTH OF THEIR ARTICLES THE CURRENT BURDENOFPROOF RULE TO BE SURE HAS ITS SUPPORTERS IF YOU FIRE AN ARROW YOU SHOULD BE RESPONSIBLE FOR THE CONSEQUENCES SAYS PETER CARTERRUCK THE 79YEAROLD DOYEN OF LONDON LIBEL LAWYERS WHOSE CLIENTS HAVE INCLUDED CABINET MINISTERS AFRICAN ROYALTY AND MANY NEWSPAPERS THE LORD CHANCELLOR'S PROPOSALS ATTACK THE DAMAGES ISSUE BUT NOT THE BASIC UNFAIRNESS IN THE LAW ON THE BURDENOFPROOF ISSUE SAID LAWYER GEOFFREY ROBERTSON WHOSE MEDIA CLIENTS INCLUDE DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL EUROPE THE TWO MAGAZINES SUED BY MR MAJOR THE SATIRICAL SCALLYWAG AND THE 80YEAROLD POLITICAL JOURNAL THE NEW STATESMAN AND SOCIETY COULD FACE FINANCIAL RUIN FROM THE PRIME MINISTER'S LIBEL ACTION SEPARATE LAWSUITS FILED AGAINST COMPANIES THAT PRINT DISTRIBUTE AND SELL NEW STATESMAN AND SOCIETY WERE QUICKLY SETTLED WITH MR MAJOR AND THE WOMAN CATERER ACCEPTING SUBSTANTIAL UNDISCLOSED DAMAGES AND A PUBLIC APOLOGY THE EDITOR OF THE NEW STATESMAN AND SOCIETY SAYS THOSE SETTLEMENTS HAVE ALREADY COST THE MAGAZINE 120000 BECAUSE IT IS OBLIGED TO INDEMNIFY THE THIRD PARTIES FOR THEIR LIBEL COSTS MAKING THIRD PARTIES LIABLE FOR THE CONTENTS OF THE PUBLICATION THEY HANDLE IS LIKE SAYING THAT TELEVISIONSET MANUFACTURERS SHOULD BE LIABLE FOR THE PROGRAMS SHOWN ON THEM THE MAGAZINE'S EDITOR STEVE PLATT WROTE IN THE SUNDAY TIMES DUSKO DODER'S LAWSUIT AGAINST TIME INVOLVES A DEC 28 ARTICLE IN WHICH TIME REPORTED THAT A KGB COLONEL WHO BECAME A DOUBLE DEFECTOR TOLD US OFFICIALS THAT HE HAD HEARD FROM COLLEAGUES THAT MR DODER ACCEPTED 1000 FROM A KGB AGENT WHILE REPORTING FROM MOSCOW IN THE EARLY 1980S MR DODER CATEGORICALLY DENIED THE ALLEGATIONS WHICH THE TIME ARTICLE ITSELF CONCEDED CANNOT BE PROVED SENIOR POST EDITORS SUPPORTED MR DODER CONTESTING THE TIME ARTICLE'S SUGGESTION THAT HE LEFT THE NEWSPAPER UNDER A CLOUD OTHER JOURNALISTS WHO WORKED THE MOSCOW BEAT IN THE 1980S ALSO RUSHED TO MR DODER'S DEFENSE PRAISING HIS HARD WORK SUPERIOR CONTACTS AND LANGUAGE SKILLS FOR HIS NUMEROUS SCOOPS IN A STATEMENT ISSUED WHEN MR DODER'S LAWSUIT WAS FILED THE MAGAZINE SAID TIME FELT THAT ITS STORY ABOUT MR DODER RAISED IMPORTANT ISSUES OTHERS HAVE DISAGREED WITH TIME'S CONCLUSION AND HAVE SO EXPRESSED THEMSELVES IN LETTERS TO THE EDITOR WHICH TIME HAS PUBLISHED AND IN ARTICLES IN OTHER PUBLICATIONS TIME'S REPORTING IN THIS STORY WAS THOROUGH AND RESPONSIBLE AND WE WOULD WELCOME THE OPPORTUNITY TO DEFEND THIS LIBEL SUIT IN THE US A LAWYER FOR TIME SAYS THE MAGAZINE HAS FILED MOTIONS ARGUING FOR DISMISSAL OF THE CASE IN BRITISH COURT SAYING IT SHOULD BE HEARD EITHER IN THE US WHERE MOST WITNESSES ARE LOCATED OR IN THE NETHERLANDS WHERE THE ATLANTIC EDITION OF TIME INTERNATIONAL IS PUBLISHED A COURT HEARING IS SCHEDULED FOR JUNE 11 THE LAWSUIT SEEKS UNSPECIFIED MONETARY DAMAGES INCLUDING AGGRAVATED DAMAGES FROM TIME AND AN INJUNCTION PREVENTING THE MAGAZINE FROM RESTATING THE ALLEGATIONS CONTAINED IN THE ARTICLE MR DODER REFERRED QUESTIONS TO HIS LONDONBASED LAWYERS WHO DECLINED TO DISCUSS THE LAWSUIT 9305140180 930514 GRANDMET POSTS DECLINE OF 24 IN PRETAX PROFIT SPECIAL TO THE WALL STREET JOURNAL LONDON GRAND METROPOLITAN PLC A BRITISH FOOD AND DRINKS CONCERN THAT OWNS BURGER KING AMONG OTHER PROPERTIES SAID ITS PRETAX PROFIT FOR THE SIX MONTHS ENDED MARCH 31 FELL 24 TO 417 MILLION 6388 MILLION AS THE COMPANY RESTATED ITS 1992 FINANCIAL ACCOUNTS THE RESULT WAS JUST SLIGHTLY BETTER THAN ANALYSTS EXPECTED SALES WERE DOWN SLIGHTLY AT 409 BILLION FROM 413 BILLION THE COMPANY SAID IT EXPECTS US AND UK MARKETS TO CONTINUE IMPROVING GRADUALLY BUT WARNED THAT CONTINENTAL EUROPEAN MARKETS WILL INCREASINGLY BE AFFECTED BY THE RECESSION DURING 1993 SIR ALLEN SHEPPARD CHAIRMAN AND GROUP CHIEF EXECUTIVE SAID THAT SINCE FEBRUARY THE WORLD ECONOMY HAS PERFORMED MUCH AS WE ANTICIPATED WITH GRADUAL RECOVERY EMERGING IN THE US SOME EARLY SIGNS OF IMPROVEMENT IN THE UK BUT A WORSENING ECONOMIC CLIMATE IN MANY CONTINENTAL EUROPEAN MARKETS PROFIT ATTRIBUTABLE TO SHAREHOLDERS FELL TO 278 MILLION FROM 411 MILLION IN THE SAME PERIOD IN 1992 THE COMPANY RESTATED ITS 1992 PRETAX PROFIT TO TAKE ACCOUNT OF A 155 MILLION PROFIT FROM THE SALE OR TERMINATION OF BUSINESSES DURING THE FIRST SIX MONTHS OF 1992 A BREAKDOWN OF THE BALANCE SHEET SHOWS THAT REVENUE AND OPERATING PROFIT IN ALL THREE MAJOR BUSINESS AREAS FOODS DRINKS AND RETAILING WERE HIGHER IN THE LATEST SIX MONTHS THAN A YEAR EARLIER BY GEOGRAPHIC BREAKDOWN REVENUE AND OPERATING PROFIT IN THE US ACHIEVED THE LARGEST INCREASE RISING BY 53 AND 54 RESPECTIVELY COMMENTING ON THE VARIOUS BUSINESS CATEGORIES GRAND MET SAID THAT ITS NORTH AMERICAN FOOD OPERATIONS INCREASED OPERATING PROFIT BY 5 TO 126 MILLION ABOUT 80 OF THE COMPANY'S PROFIT FROM FOOD OPERATIONS COMES FROM THE US THE GREEN GIANT VEGETABLE GROCERY BUSINESS IN THE US HAD ANOTHER WEAK SIX MONTHS AS PROFIT HALVED VEGETABLE PRICES CONTINUED TO REMAIN LOW FOLLOWING A RECORD HARVEST GLUT IN THE US HOWEVER THE COMPANY SAID CONDITIONS IN THE VEGETABLE MARKET WERE ALREADY IMPROVING STRIPPING OUT THE POSITIVE IMPACT OF CONVERTING DOLLAR EARNINGS INTO STERLING FOLLOWING THE BRITISH CURRENCY'S DEVALUATION NORTH AMERICAN DOLLAR PROFIT FROM FOOD DECLINED 10 IN AN INTERVIEW IAN MARTIN GRAND MET'S CHIEF OPERATING OFFICER SAID THAT US OPERATIONS WERE ROARING BACK TO SUCCESS IN 1993 HE REITERATED THE COMPANY'S BELIEF THAT THE BULK OF THE BENEFITS OF IMPROVEMENTS IN THE US WILL ONLY BE REFLECTED IN THE SECOND HALF OF THE YEAR 9305140179 930514 WHAT DOES BARBRA BELIEVE IN ANYWAY REPAIR THE WORLD' WASHINGTON'S NEW RISING STAR STREISAND SAYS SHE'S DRIVEN BY A KEY CHILDHOOD LESSON BY TIMOTHY K SMITH STAFF REPORTER OF THE WALL STREET JOURNAL THIRTYTWO YEARS LATER MS STREISAND IS STRUGGLING WITH THE SAME KIND OF PROBLEM ON A NATIONAL STAGE SHE HAS BEEN THE MOST POWERFUL WOMAN IN HOLLYWOOD FOR SOME TIME NOW AND LATELY SHE HAS BEEN STEPPING OUT TO PLAY THAT ROLE IN PUBLIC BUT SHE HAS DONE SO AT A PECULIAR MOMENT IN THE HISTORY OF CELEBRITY CLOUT FRESH FROM A WASHINGTON TOUR THAT WAS WIDELY PERCEIVED AS A VICTORY LAP FOR SHOWBUSINESS LIBERALS SHE FINDS HERSELF CAST AS THE PRESUMPTIVE LEADER OF A SORT OF FLYING WEDGE OF GLAMOROUS NITWITS JETTING IN FROM THE COAST TO HAVE THEIR POLITICAL CREDENTIALS VALIDATED HOLED UP IN HER MANHATTAN APARTMENT WITH A STACK OF BOOKS ABOUT THOMAS JEFFERSON MS STREISAND SAYS IT'S PAINFUL TO GET A BAD RAP I THINK THE PRESIDENT IS GRATEFUL FOR THE HELP HE'S GOTTEN FROM PEOPLE IN SHOW BUSINESS MS STREISAND ONCE A FAMOUS RECLUSE SEEMS TO BE EVERYWHERE ALL AT ONCE BESIDES SINGING AT THE PRESIDENT'S INAUGURAL SHE HAS ACCOMPANIED HIM TO THE ANNUAL GRIDIRON DINNER AND HAS STAYED OVERNIGHT AT THE WHITE HOUSE SHE HAS DINED WITH THE ATTORNEY GENERAL SOCIALIZED WITH THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF AND TOURED THE NATIONAL ARCHIVES SHE HAS BEEN HONORED BY THE AMERICAN CIVIL LIBERTIES UNION SHE IS SCHEDULED TO REAPPEAR IN VOGUE MAGAZINE AFTER A 25YEAR INTERVAL MS STREISAND IS ACTUALLY AN INTERESTING SYMBOL A PROMINENT REPUDIATION OF THE REAGANBUSH LEGACY SHE IS A LIBERAL DEMOCRATIC JEWISH MEMBER OF THE CULTURAL ELITE SHE IS ALSO A SELFMADE WOMAN WHO HAS EARNED A LARGE FORTUNE PARTLY BY WEAVING HER ACTIVIST ENTHUSIASMS INTO HER ART HER POLITICS AND HER CINEMA ARE IN FACT BECOMING INDISTINGUISHABLE RIGHT NOW SHE IS WORKING ON A FILM VERSION OF THE NORMAL HEART LARRY KRAMER'S PLAY ABOUT THE EARLY DAYS OF THE AIDS EPIDEMIC SHE RECENTLY PICKED UP AN OPTION TO MAKE A MOVIE ABOUT LT COL MARGARETHE CAMMEMEYER WHO WAS FORCED TO RESIGN FROM THE WASHINGTON NATIONAL GUARD WHEN SHE ACKNOWLEDGED THAT SHE IS A LESBIAN SHE SANG FOR PRESIDENT KENNEDY WHEN SHE WAS 19 AND FOR PRESIDENT JOHNSON FIVE YEARS LATER THEN DURING A CONCERT IN NEW YORK'S CENTRAL PARK IN 1967 SHE RECEIVED A DEATH THREAT PUTATIVELY FROM THE PALESTINE LIBERATION ORGANIZATION SHE SELDOM SANG IN PUBLIC FOR THE NEXT 19 YEARS MS STREISAND SPENT THOSE DECADES MAKING RECORDS AND MOVIES BUILDING HER DYNASTY WITH A NATURAL TALENT THAT IS BY GENERAL HOLLYWOOD CONSENSUS SCARY SHE HAS NEVER PRACTICED SCALES EVEN TODAY THE ONLY MAINTENANCE SHE DEVOTES TO HER VOICE IS TO TAKE STEAMY SHOWERS IT'S FUNNY BECAUSE I ALWAYS THOUGHT MY TOP NOTE WAS A D AND NOW I'M HITTING AN E FLAT SHE SAYS SHE BECAME RICH ACQUIRED A 24ACRE ESTATE IN MALIBU AND BUILT FIVE HOUSES ON IT I USED TO NEVER STOP WORKING SHE SAYS MY SECRETARY USED TO LIVE IN MY GUEST HOUSE ALL THE MEN IN MY LIFE HAVE SAID CAN'T YOU STOP WORKING AT SEVEN O'CLOCK' I NEVER USED TO UNDERSTAND WHAT THEY MEANT SHE NEVER DID HAVE TIME TO GO TO COLLEGE AND SHE TAKES HER EDUCATION ABOUT PUBLIC AFFAIRS WHERE SHE FINDS IT SHE READS A LOT BUT HARDLY ANY FICTION I WENT TO A DINNER PARTY A FEW YEARS AGO AND SOME FRIENDS WANTED TO INTRODUCE ME TO SOME ELIGIBLE BACHELORS AND INSTEAD I SAT NEXT TO ARTHUR SCHLESINGER JR AND HE TURNED ME ON TO THE ECONOMIST SO NOW I'M READING THAT SHE SAYS OBLIQUE AS THAT CONNECTION MIGHT SEEM HOLLYWOOD DEMOCRATS HAD BEEN SEETHING FOR A FULL SIX YEARS OVER THE POPULARITY OF PRESIDENT REAGAN FORMERLY PRESIDENT OF THE SCREEN ACTORS GUILD THE FLEDGLING HOLLYWOOD WOMEN'S POLITICAL COMMITTEE OF WHICH MS BERGMAN WAS A FOUNDING MEMBER WAS PLANNING TO RAISE FUNDS FOR SIX DEMOCRATIC SENATORIAL CANDIDATES IN CLOSE RACES THE CHERNOBYL CONVERSATION BECAME A DISCUSSION OF WHAT IS MORE FRIGHTENING PERFORMING IN FRONT OF AN AUDIENCE OR NUCLEAR ANNIHILATION MS BERGMAN SAYS THAT SEPTEMBER MS STREISAND HAD AN AMPHITHEATER CARVED INTO HER LAWN INVITED HOLLYWOOD'S ARISTOCRACY FOR AN EVENING PERFORMANCE AT 5000 A COUPLE SANG 17 SONGS AND RAISED 15 MILLION A SUM THAT MADE DEMOCRATIC PARTY PROFESSIONALS GASP FIVE OF THE SIX SENATORS WON THEIR RACES IN NOVEMBER THE SENATE REVERTED TO A DEMOCRATIC MAJORITY AND THE HWPC WENT ON TO TAKE ITS PLACE AS ONE OF THE PREEMINENT WOMEN'S POLITICAL FINANCE ORGANIZATIONS ON A PAR WITH EMILY'S LIST AND THE WOMEN'S CAMPAIGN FUND EMBOLDENED MS STREISAND ENDOWED A FOUNDATION FORMED A BOARD AND HIRED A DIRECTOR TO RUN IT THE FOUNDATION DISTRIBUTED A TOTAL OF 714800 LAST YEAR TO 64 ORGANIZATIONS PRIMARILY GROUPS FOCUSING ON CIVIL RIGHTS AIDS AND THE ENVIRONMENT MS STREISAND LEAVES MOST DETAILS OF HER POLITICAL PHILANTHROPY TO THE PROFESSIONALS BUT OCCASIONALLY SHE JUST HAULS OFF AND MAKES A GRANT HERSELF WHEN THE EXXON VALDEZ RAN AGROUND AND BEGAN SPILLING OIL INTO PRINCE WILLIAM SOUND FOR INSTANCE THE TINY PUBLIC RADIO STATION IN VALDEZ COVERING THE BIGGEST STORY OF ITS LIFE AND FEEDING ONTHESCENE REPORTS TO OTHER RADIO STATIONS AROUND THE COUNTRY QUICKLY OVEREXTENDED ITSELF AND RAN OUT OF MONEY MS STREISAND GOT WIND OF THE PROBLEM AND IMMEDIATELY GAVE THE STATION 5000 KEEPING IT ON THE AIR UNTIL IT COULD ORGANIZE AN EMERGENCY FUND DRIVE IN THE 1980S WHEN MS STREISAND BEGAN DIRECTING AND PRODUCING MOVIES OF HER OWN SHE ACQUIRED THE CLOUT OF A HOLLYWOOD EXECUTIVE AND THE LEEWAY TO CONTEMPLATE SOCIAL ISSUES ON SCREEN SHE MADE YENTL A MOVIE ABOUT A GIRL WHO HAS TO DRESS AS A BOY TO GET AN EDUCATION THEN SHE MADE NUTS A MOVIE ABOUT A WOMAN WHO MAY OR MAY NOT BE MAD BECAUSE I WANTED TO WORK ON CHILD ABUSE AND INCEST A QUESTION SHE OFTEN ASKS ARTISTICALLY AND POLITICALLY IS WHAT HAPPENS TO US IN CHILDHOOD MS STREISAND SAYS WE DIDN'T HAVE MUCH I SLEPT IN THE BED WITH MY MOTHER AND MY BROTHER SLEPT ON A COT WE DIDN'T HAVE A LIVING ROOM AND I USED TO HIDE UNDER THE DINING ROOM TABLE A LOT HER SYMPATHETIC BOND WITH PRESIDENT CLINTON IS ROOTED IN CHILDHOOD EXPERIENCE BOTH WERE YOUNG OVERACHIEVERS RAISED IN HUMBLE CIRCUMSTANCES PEOPLE TALK A LOT ABOUT CLINTON LOSING HIS FATHER SHE SAYS I TOTALLY IDENTIFY WITH THAT BECAUSE I LOST MY FATHER WHEN I WAS AN INFANT MS STREISAND DEFENDS THE PRESIDENT'S FIRST 100 DAYS I MEAN LOOK AT ALL THE THINGS HE'S DONE IN TERMS OF THE FAMILY LEAVE ACT AND THE BIODIVERSITY TREATY SHE SAYS AND IT'S REALLY IMPORTANT TO ME AS A WOMAN TO HAVE THAT GAG RULE LIFTED ON ABORTION COUNSELING SHE FIRST MET MR CLINTON AT A POLITICAL EVENT AT PRODUCER TED FIELD'S HOUSE IN BEVERLY HILLS BY THE TIME OF THE GENERAL ELECTION SHE HAD HELPED TO RAISE ABOUT 1 MILLION FOR THE DEMOCRATIC TICKET SO IT WAS NO SURPRISE THAT SHE WAS INVITED TO PERFORM AT THE INAUGURAL FESTIVITIES BEARING THE IMPRIMATUR OF HOLLYWOOD'S DEMOCRATIC ESTABLISHMENT BUT THEN A FUNNY THING HAPPENED CHEVY CHASE SALLY FIELD RICHARD DREYFUSS GOLDIE HAWN AND 40 OF 1992'S GRAMMY AWARD NOMINEES WERE INVITED TOO TWELVE YEARS OF PENTUP LIBERAL SHOWBUSINESS ENERGY SPILLED INTO THE POTOMAC AS HOLLYWOOD SWARMED THE INAUGURAL WASHINGTON ONCE DESCRIBED BY A WISE FRENCH DIPLOMAT AS AN ANTIEROTIC PLACE WAS FOR THE FIRST TIME IN MEMORY STAMPEDED BY GORGEOUS RICH DEMOCRATIC SHOWBUSINESS PEOPLE AND THEY KEPT COMING BACK BRUCE BABBITT BRIEFED A SQUAD OF CELEBRITIES ON THE ENVIRONMENT DIRECTOR HENRY JAGLOM WROTE A LETTER TO THE PRESIDENT URGING HIM TO END THE SUFFERING IN BOSNIA IT WAS SIGNED BY ROBERT ALTMAN JEFF BRIDGES SHERRY LANSING AND 12 OTHER SHOWBUSINESS PEOPLE TEMPERS FRAYED CRUEL APHORISMS WERE DUSTED OFF WASHINGTON HOLLYWOOD IS THE ATM OF DEMOCRATIC POLITICS HOLLYWOOD POLITICS IS SHOW BUSINESS FOR UGLY PEOPLE I'M FEELING A KIND OF SADNESS ABOUT THIS MS STREISAND SAYS ALLUDING TO PRESS REPORTS OF FRICTION BETWEEN MOVIE STARS AND RHODES SCHOLARS I MEAN I DON'T UNDERSTAND BOSNIA I WOULDN'T BE SO PRESUMPTUOUS OF HER TOUR LAST WEEK SHE SAYS I ONLY MET WITH CLINTON FOR LIKE FIVE MINUTES AND IT WAS ONLY TO ASK HIM NOT TO CUT FUNDING FOR AIDS RESEARCH SURE SHE HAD DINNER WITH ATTORNEY GENERAL JANET RENO BUT ASKED WHAT THEY TALKED ABOUT MS STREISAND SAYS LOTS OF THINGS WOMEN'S ISSUES COOKING MS STREISAND HAS A NEW ALBUM OF BROADWAY TUNES COMING OUT SHORTLY SHE WILL ALSO CONTINUE USING HER VOICE AS A POLITICAL INSTRUMENT AT THE YESHIVA THEY TAUGHT US TIKKUN OLAM IT MEANS TO REPAIR THE BROKEN PIECES OF THE WORLD SHE SAYS I DON'T KNOW IF IT'S A JEWISH THING OR A RELIGIOUS THING BUT I FEEL IT 9305140178 930514 WHO'S NEWS PHH CORP PHH CORP HUNT VALLEY MD H ROBERT NAGEL 49 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT HE REMAINS RESPONSIBLE FOR THE MORTGAGE CASUALTY AND PROPERTYRELATED INSURANCE SERVICES OF THIS FLEETMANAGEMENT LEASING AND PERSONNELRELOCATIONSERVICES COMPANY 9305140177 930514 WHO'S NEWS NWNL COS NWNL COS MINNEAPOLIS JAMES J HOWARD 57 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NORTHERN STATES POWER CO WAS ELECTED A DIRECTOR SUCCEEDING JOHN E PEARSON A FORMER CHAIRMAN OF THIS INSURER WHO RETIRED 9305140176 930514 FINANCING BUSINESS FLIR SYSTEMS INC FLIR SYSTEMS INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A REGISTRATION STATEMENT FOR AN INITIAL PUBLIC OFFERING OF 23 MILLION COMMON SHARES FLIR WHICH DEVELOPS THERMAL IMAGING SYSTEMS USED FOR SUCH PRODUCTS AS NIGHTVISION DEVICES SAID IT PLANS TO SELL 900000 SHARES AND THAT EXISTING SHAREHOLDERS PLAN TO SELL 14 MILLION SHARES THE OFFERING PRICE IS EXPECTED TO BE BETWEEN 10 AND 12 A SHARE THE PORTLAND ORE COMPANY'S PROCEEDS WILL BE USED TO FINANCE WORKING CAPITAL REQUIREMENTS AND FOR GENERAL CORPORATE PURPOSES 9305140175 930514 INTERNATIONAL JAPAN RAIDS CONSTRUCTION ASSOCIATION TRYING TO LOOK TOUGHER ON CORRUPTION BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO TRYING TO DEFLECT CRITICISM AT HOME AND ABROAD THE JAPANESE GOVERNMENT IS MAKING A WELLPUBLICIZED EFFORT AT CRACKING DOWN ON COLLUSION AND CORRUPTION IN THE NATION'S CONSTRUCTION INDUSTRY JAPANESE AUTHORITIES YESTERDAY RAIDED THE OFFICES OF A REGIONAL CONSTRUCTION ASSOCIATION WITH TIES TO DISGRACED POLITICAL POWER BROKER SHIN KANEMARU EARLIER IN THE WEEK THE CONSTRUCTION MINISTRY UNVEILED GUIDELINES DESIGNED TO MAKE PUBLICWORKS BIDDING MORE ACCESSIBLE TO COMPANIES WITHOUT STRONG POLITICAL CONNECTIONS THE MOVES COME AT A TIME WHEN JAPAN'S HUGE CONSTRUCTION INDUSTRY IS UNDER FIRE ON SEVERAL FRONTS ON APRIL 30 US TRADE REPRESENTATIVE MICKEY KANTOR CHARGED THAT JAPAN'S CONSTRUCTION MARKET IS EFFECTIVELY CLOSED TO FOREIGNERS HE GAVE JAPAN 60 DAYS TO BEGIN ADDRESSING THE PROBLEM OR FACE RETALIATION THE JAPANESE PUBLIC IS ALSO QUITE ANGRY WITH THE NATION'S CONTRACTORS WHO APPEAR TO HAVE BEEN THE MAJOR SOURCE OF ILLEGAL FUNDS FOR MR KANEMARU FORMERLY THE MOST POWERFUL POLITICIAN IN JAPAN SINCE MR KANEMARU'S MARCH 6 ARREST ON CHARGES OF EVADING TAXES ON THOSE FUNDS TOKYO PROSECUTORS HAVE RAIDED THE OFFICES OF JAPAN'S MAJOR CONSTRUCTION COMPANIES LOOKING FOR EVIDENCE THAT THE FIRMS PAID OFF GOVERNMENT FIGURES TO WIN BIDS THE GOVERNMENT HOWEVER WILL HAVE A DIFFICULT TIME CONVINCING SKEPTICS THAT THIS NEW TOUGH LINE IS ANYTHING MORE THAN A SHOW US GOVERNMENT OFFICIALS REFUSED TO COMMENT YESTERDAY BUT THERE WAS PLENTY OF DOMESTIC CRITICISM A SANKEI SHIMBUN NEWSPAPER EDITORIAL CALLED THE NEW CONSTRUCTION MINISTRY BIDDING PRACTICES EXTREMELY INADEQUATE THE NIHON KEIZAI SHIMBUN RAN AN EDITORIAL TITLED DON'T LEAVE PUBLIC WORKS REFORM TO THE CONSTRUCTION MINISTRY THE EDITORIAL SAID WE ARE SURPRISED AT HOW LITTLE THE MINISTRY RECOGNIZES CRITICISM FROM INSIDE AND OUTSIDE THE COUNTRY OFFICIALS OF JAPAN'S FAIR TRADE COMMISSION SEARCHED MORE THAN 30 OFFICES OF THE YAMANASHI CONSTRUCTION INDUSTRY ASSOCIATION AND MEMBER COMPANIES IN RURAL YAMANASHI PREFECTURE MR KANEMARU'S HOME THE COMPANIES ARE SUSPECTED OF PARTICIPATING IN DANGO OR MEETING AHEAD OF A PUBLIC BID TO RIG THEIR OFFERS THE NHK TELEVISION NETWORK REPORTED DANGO IS A VIOLATION OF JAPANESE ANTITRUST LAW AND DANGO PRACTICES ARE STILL CONSIDERED COMMON JAPAN'S FTC HAS ATTACKED THE CONSTRUCTION INDUSTRY BEFORE WITH LIMITED RESULTS THE COMMISSION SAYS IT HAS FOUND 23 CASES OF ILLEGAL BIDRIGGING ON PUBLICSECTOR PROJECTS SINCE 1977 IN ONE CASE THE US GOVERNMENT SEEMED SO DISSATISFIED WITH THE FTC'S LAX HANDLING OF THE CONSTRUCTION INDUSTRY THAT AMERICAN LAWENFORCEMENT AUTHORITIES TOOK THE UNUSUAL STEP OF PURSUING THE MATTER THEMSELVES IN 1988 THE FTC ORDERED JAPANESE COMPANIES TO PAY ABOUT 2 MILLION IN FINES FOR RIGGING BIDS FOR ORDERS AT A US NAVAL BASE IN YOKOSUKA JAPAN AFTER THE US JUSTICE DEPARTMENT THREATENED TO SUE IN JAPANESE COURT THE COMPANIES AGREED TO SETTLE FOR MORE THAN 30 MILLION 9305140174 930514 WHO'S NEWS STERLING BANCORP STERLING BANCORP NEW YORK JOSEPH A DEHLER 61 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF STANDARD FACTORS CORP STERLING'S FACTORING UNIT AND SENIOR VICE PRESIDENT OF ITS STERLING NATIONAL BANK & TRUST CO UNIT BOTH NEWLY CREATED POSTS MR DEHLER HAD BEEN VICE CHAIRMAN OF NEW YORKBASED CIT GROUPFACTORING 9305140173 930514 WHO'S NEWS FIRST LIBERTY FINANCIAL CORP FIRST LIBERTY FINANCIAL CORP MACON GA CHARLES G ANDY WATHEN RESIGNED AS PRESIDENT OF LIBERTY MORTGAGE CORP THE MORTGAGE COMPANY UNIT OF THIS BANK HOLDING COMPANY TO PURSUE OTHER BUSINESS INTERESTS THE COMPANY SAID IT HAS BEGUN SEARCHING FOR A SUCCESSOR 9305140172 930514 WHO'S NEWS KEMPER CORP KEMPER CORP CHICAGO SANDY LINCOLN 47 YEARS OLD WAS NAMED CHIEF INVESTMENT OFFICER OF THE KEMPER FINANCIAL SERVICES UNIT AND A CORPORATE SENIOR VICE PRESIDENT FORMERLY CHAIRMAN OF THE UNIT'S INSTITUTIONAL HOLDINGS GROUP HE SUCCEEDS STEPHEN B TIMBERS PREVIOUSLY NAMED PRESIDENT OF THE PARENT COMPANY 9305140171 930514 EUROPEAN INVESTORS ARE POURING MONEY INTO MUTUAL FUNDS BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL GIANT EUROPEAN FUND MANAGER ROBECO GROUP SAYS IT HAS WITNESSED A FLOOD OF NEW MONEY INTO ITS FUNDS SO FAR THIS YEAR IN JUST FOUR MONTHS IT HAS ALREADY RECEIVED MORE THAN THREE BILLION GUILDERS 166 BILLION IN NEW SUBSCRIPTIONS REPRESENTING ABOUT 7 OF TOTAL FUNDS UNDER MANAGEMENT AT THE END OF 1992 AND ALREADY OUTPACING LAST YEAR'S PERFORMANCE WHEN IT RECEIVED ONLY 24 BILLION GUILDERS IN NEW MONEY ROBECO'S NEWS IS THE TIP OF THE ICEBERG FIRSTQUARTER DATA FROM AROUND EUROPE SHOW THERE IS A NEW FUND RUSH ON PROVOKED BY EUROPEAN INVESTORS SEEKING TO REPOSITION THEMSELVES AS CENTRAL BANKS CLICK THEIR INTEREST RATES LOWER FOR MOST INVESTORS LOWER RATES GIVE THE SIGNAL TO PILE INTO BOND AND EQUITY FUNDS BUT CURIOUSLY DATA FROM VARIOUS COUNTRIES SHOW THAT EVEN MONEY MARKET FUNDS WHICH THRIVE ON HIGH RATES ARE SEEING CONTINUED GROWTH ALTHOUGH THERE IS NO CLEAR EXPLANATION THAT COULD BE PARTLY BECAUSE OF SOME RETAIL CLIENTS' SLOW REACTIONS TO A CHANGING INVESTMENT CLIMATE AND PERHAPS ALSO TO EUROPEAN INVESTORS' ACQUIRED TASTE FOR LOWRISK HIGHLY LIQUID INSTRUMENTS IN FRANCE ACCORDING TO FUND DATA FIRM EUROPERFORMANCE INVESTORS CHANNELED A NET 22 BILLION FRENCH FRANCS 405 BILLION OF NEW MONEY INTO BOND SICAVS AS FRENCH MUTUAL FUNDS ARE KNOWN IN THE FIRST QUARTER REPRESENTING ALMOST 7 OF THE TOTAL UNDER MANAGEMENT AT THE BEGINNING OF THE YEAR MONEY MARKET FUNDS ALSO CONTINUED TO RISE ALBEIT MORE MODESTLY WITH SOME 305 BILLION FRANCS IN NEW MONEY BRINGING THE TOTAL TO 13 TRILLION FRANCS IN GERMANY THE INVESTMENT FUND ASSOCIATION BVI SAYS NEW SUBSCRIPTIONS TO BOND AND SHARE FUNDS OVER THE SAME PERIOD ALSO WERE UP SHARPLY REPRESENTING A NET INFLOW OF 2357 BILLION MARKS 1462 BILLION AND PUSHING FUNDS UNDER MANAGEMENT NOT INCLUDING REAL ESTATE FUNDS TO 2458 BILLION MARKS BRITISH INVESTORS INDULGING THEIR TRADITIONAL TASTE FOR EQUITIES POURED A NET 186 BILLION 285 BILLION INTO UNIT TRUSTS OF WHICH A RECORD 846 MILLION WENT INTO PERSONAL EQUITY PLAN FUNDS BRINGING UK RETAIL MANAGEMENT TO 707 BILLION ACCORDING TO THE UNIT TRUST ASSOCIATION AND SPAIN'S FUND ASSOCIATION INVERCO SAYS THE AMOUNT OF MONEY INVESTED IN MUTUAL FUNDS THERE ROSE ALMOST 11 TO 696 TRILLION PESETAS 5860 BILLION WITH 374 TRILLION OF THAT IN MONEY MARKET FUNDS AND MOST OF THE REST IN FIXEDINCOME FUNDS EQUITY FUNDS ACCOUNT FOR ONLY ABOUT 06 OF THE TOTAL IN SPAIN UNLIKE THE OTHER NATIONAL DATA THE SPANISH FIGURES DON'T REPRESENT NEW MONEY ALONE BUT INCLUDE INVESTMENT GAINS THIS SORT OF ENTHUSIASM AMONG INVESTORS MEANS LOTS OF GOOD NEWS FOR ASSET MANAGERS AND NO ONE SEEMS TO BE GETTING MORE THAN ROBECO A SPOKESMAN FOR THE DUTCH GROUP EVEN ADMITS TO THE GROUP'S SURPRISE AT THE SHEER VOLUME OF MONEY AND RUSH OF NEW CLIENTS IN ANSWER TO QUERIES HE SAID ROBECO HAS TAKEN ON 45000 NEW CLIENTS IN THE PAST FOUR MONTHS MAKING FOR A 10 INCREASE FROM LAST DECEMBER THESE INVESTORS TOGETHER WITH EXISTING CLIENTS HAVE PUSHED ABOUT 15 BILLION GUILDERS OF NEW MONEY INTO ROBECO'S TWO MEDIUMTERM BOND FUNDS FLORENTE AND DIVIRENTE SINCE THE START OF THE YEAR REPRESENTING A 33 LEAP IN TOTAL FUND SIZE AT THE SAME TIME THE GROUP'S LONGTERM BOND FUND RORENTO HAS SEEN AN ABRUPT REVERSAL OF OUTFLOW AFTER LOSING 50 MILLION GUILDERS LAST YEAR WEIGHING IN AT THE END OF THE YEAR WITH 57 BILLION UNDER MANAGEMENT IT HAS ACQUIRED 906 MILLION GUILDERS IN NEW MONEY SO FAR THIS YEAR ALL THIS NEW MONEY WON'T IN FACT BRING MUCH SOLACE TO THE MANAGERS OF ROBECO'S TWO MAIN EQUITY FUNDS ROBECO AND ROLINCO WHICH SINCE 1989 HAVE BEEN LEAKING ASSETS THROUGH A STEADY NET OUTFLOW OF CLIENTS' MONEY LAST YEAR THE TWO FUNDS WHICH TOGETHER AMOUNTED TO 14 BILLION GUILDERS AT YEAR'S END BETWEEN THEM LOST SLIGHTLY MORE THAN ONE BILLION GUILDERS SO FAR THIS YEAR THEY ARE ALREADY DOWN A FURTHER 460 MILLION GUILDERS ROBECO SAID 9305140170 930514 FAR BIGGER PAYROLL TAX ON LARGE FIRMS IS STRONGLY CONSIDERED FOR HEALTH PLAN BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS STRONGLY CONSIDERING REQUIRING MANY LARGE COMPANIES TO PAY A FAR BIGGER PAYROLL TAX THAN MOST SMALLER COMPANIES IN THE EARLY YEARS OF ITS HEALTH PLAN ONE OFFICIAL ON THE WHITE HOUSE HEALTHCARE TASK FORCE PREDICTED THAT THE ADMINISTRATION MAY PROPOSE TO FINANCE HEALTH COVERAGE WITH A PAYROLL TAX THAT ULTIMATELY WOULD FALL BETWEEN 8 AND 11 COUNTING BOTH EMPLOYER AND EMPLOYEE CONTRIBUTIONS BUT IN THE SHORT TERM COMPANIES WITH HIGH HEALTH EXPENDITURES WOULD BE ASKED TO PAY A HIGHER RATE WHILE COMPANIES THAT NOW PROVIDE LITTLE OR NO HEALTH COVERAGE WOULD PAY A LOWER RATE EVEN THOUGH EMPLOYEES OF BOTH WOULD BE GETTING THE SAME BENEFITS FOR EXAMPLE IF THE PAYROLL TAX ENDED UP BEING 9 A BIG AUTO MAKER MIGHT START BY PAYING 15 AND A CORNER GROCER MIGHT PAY ONLY 3 OVER TIME BOTH WOULD BE MOVED TOWARD THE 9 TARGET BUT ADMINISTRATION OFFICIALS STRESSED THAT COMPANIES SHOULDERING A HIGHER TAX RATE AT THE OUTSET GENERALLY LARGE COMPANIES STILL WOULD BE REQUIRED TO SPEND LESS THAN THEY CURRENTLY DO ON HEALTH CARE AND AS THE YEARS GO BY SUCH COMPANIES PRESUMABLY WOULD SPEND LOWER AND LOWER AMOUNTS THE DIFFERENCE WOULD BE MADE UP BY COMPANIES MOSTLY SMALLER ONES THAT CURRENTLY DON'T PAY FOR HEALTH COVERAGE FOR THEIR WORKERS BUT BECAUSE THE FULL TAX WOULD BE PHASED IN GRADUALLY THESE BUSINESSES CONCEIVABLY WOULD HAVE TIME TO ADJUST IT'S BENEFICIAL TO BOTH SIDES ONE ADMINISTRATION OFFICIAL CONTENDED THE TOP BEGINS TO PAY LESS AND THE BOTTOM BEGINS TO COVER THEIR WORKERS STILL THE PLAN MIGHT NOT BE BENEFICIAL TO EVERYONE FOR INSTANCE THOUGH MANY COMPANIES WITH HIGH HEALTH EXPENDITURES COULD SAVE MONEY FROM THE BEGINNING THEIR WORKERS CONCEIVABLY COULD END UP WITH A LESS GENEROUS BENEFITS PACKAGE THAN THEY HAVE NOW ADMINISTRATION OFFICIALS HAVE SAID REPEATEDLY THAT THE STANDARD BENEFITS PACKAGE IT GUARANTEES TO ALL AMERICANS WILL BE COMPREHENSIVE BUT THEY HAVE MADE NO FINAL DECISIONS ON ITS CONTENT ALTHOUGH MANY LARGE BUSINESSES SEEM OPEN TO THE PAYROLL TAX SCHEME SOME ARE SKEPTICAL I CAN'T IMAGINE THAT BIG EMPLOYERS WOULD BE OVERJOYED AT THE THOUGHT OF TRUSTING A SYSTEM IN WHICH THEY WOULD BE PAYING 80 OR 90 OF THE TOTAL COSTS OF EVERYBODY SAID ROBERT STONE ASSOCIATE GENERAL COUNSEL AT INTERNATIONAL BUSINESS MACHINES CORP MEANWHILE SMALL BUSINESSES ADAMANTLY OPPOSE ANY KIND OF PAYROLL TAX NO MATTER HOW LOW IT IS OR HOW SLOWLY IT IS PHASED IN ADDITIONAL MANDATED PAYROLL TAXES ON SMALL BUSINESS ARE JUST A NONSTARTER SAID JOHN GALLES EXECUTIVE VICE PRESIDENT OF NATIONAL SMALL BUSINESS UNITED WHICH REPRESENTS TENS OF THOUSANDS OF COMPANIES ADMINISTRATION OFFICIALS STRESSED THAT THEY HAVEN'T YET DECIDED WHETHER TO PROCEED WITH ANY KIND OF PAYROLL TAX WHICH THEY PREFER TO CALL A WAGEBASED PREMIUM THE OTHER OPTION IS TO REQUIRE ALL EMPLOYERS TO CONTRIBUTE DIRECTLY TO THEIR WORKERS' HEALTH INSURANCE PREMIUMS AT A MEETING WITH MANUFACTURERS EARLIER THIS WEEK SENIOR WHITE HOUSE ADVISER IRA MAGAZINER NOTED THAT ANY PAYROLL TAX ON SMALL EMPLOYERS WOULD HAVE TO BE PHASED IN SLOWLY WE'RE LOOKING AT A VERY LONGTERM PHASE IN SO THAT IT DOESN'T HAVE AN ADVERSE EMPLOYMENT EFFECT FOR THOSE COMPANIES HE SAID BUT IN EFFECT MR MAGAZINER WAS REVEALING ONLY HALF THE EQUATION HE NEGLECTED TO SAY THAT MANY BIG EMPLOYERS WOULD BE SUBSIDIZING THEIR SMALLER COUNTERPARTS FOR THE TRANSITION PERIOD STILL MANY LARGE BUSINESSES SEEM CONVINCED THEY'D BE BETTER OFF RECOGNIZING THAT THEY ALREADY EFFECTIVELY SUBSIDIZE UNINSURED WORKERS THROUGH THE HIGHER PRICES HOSPITALS AND DOCTORS CHARGE TO MAKE UP THE GAP A PHENOMENON KNOWN AS COSTSHIFTING A BIG PIECE OF OUR COSTS IS COSTSHIFTING SAID WALTER MAHER DIRECTOR OF FEDERAL RELATIONS AT CHRYSLER CORP IT'S IMPORTANT THAT GETS RESOLVED SOME COMPANIES ESTIMATE THAT MORE THAN 25 OF THEIR TOTAL HEALTH EXPENSES REFLECT COSTSHIFTING NEVERTHELESS MANY QUESTIONS ABOUT HOW A PAYROLL TAX WOULD WORK REMAIN UNANSWERED FOR INSTANCE ADMINISTRATION OFFICIALS SAID THEY WEREN'T SURE WHETHER THE EMPLOYEE PORTION OF THE PAYROLL TAX WOULD VARY ALONG WITH THE EMPLOYERS' SHARE MOREOVER ADMINISTRATION OFFICIALS HAVEN'T DECIDED WHETHER THEY WILL ALLOW LARGE COMPANIES TO STAY OUT OF THE REGIONAL HEALTH INSURANCE PURCHASING POOLS THAT THE CLINTON PLAN WOULD SET UP IF BIG COMPANIES CAN OPT OUT THEY MIGHT NOT BE SUBJECT TO THE PAYROLL TAX BUT OFFICIALS HAVE SAID SUCH FIRMS THEN WOULD LIKELY BE REQUIRED TO PULL THEIR WEIGHT IN THE NEW SYSTEM BY PAYING SOME SORT OF SURCHARGE WHILE ADMINISTRATION OFFICIALS WERE DISCUSSING THE FINE POINTS OF FINANCING THEIR HEALTH PROPOSAL YESTERDAY REP PETE STARK D CALIF CALLED A NEWS CONFERENCE TO QUESTION THE ENTIRE PREMISE OF THEIR PLAN HE LIKENED MANAGED COMPETITION THE COMBINATION OF FREEMARKET FORCES AND GOVERNMENT REGULATION THAT IS AT THE HEART OF THE CLINTON PROPOSAL TO A UNICORN IT'S A BEAUTIFUL ANIMAL IN FAIRYLAND BUT UNSEEN ON EARTH SAID MR STARK WHO IS CHAIRMAN OF A HOUSE HEALTH SUBCOMMITTEE THROUGH WHICH THE CLINTON PLAN MUST PASS MR STARK ALSO RELEASED A CONGRESSIONAL BUDGET OFFICE STUDY THAT QUESTIONED THE POTENTIAL OF MANAGED COMPETITION TO REDUCE HEALTH COSTS IT WARNED THAT IN ORDER TO CUT HEALTH SPENDING SUBSTANTIALLY ANY SUCH SYSTEM WOULD HAVE TO BE STRUCTURED SO THAT CONSUMERS WOULD PROBABLY HAVE LESS CHOICE MORE LIMITED ACCESS TO MANY PROVIDERS FEWER SERVICES AND SLOWER ACCESS TO NEW TECHNOLOGIES MR STARK SAID THE CBO BEGAN WORK ON THE STUDY A YEAR AGO BEFORE MR CLINTON WAS ELECTED SEPARATELY THE HEALTH TASK FORCE HAS DECIDED AGAINST INCLUDING UNDOCUMENTED ALIENS IN ITS COVERAGE THE DECISION HAS DISMAYED MEMBERS OF THE HISPANIC CAUCUS IN CONGRESS WHO HAVE COMPLAINED ABOUT IT PUBLICLY 9305140169 930514 WHO'S NEWS PATHE TECHNOLOGIES INC PATHE TECHNOLOGIES INC IRVINGTON NY C STEPHEN CLEGG 43 YEARS OLD WHO CONTROLS 52 OF THIS MAKER OF SPRINGS AND METAL STAMPING PRODUCTS WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS WILLIAM CODOS WHO IS RETIRING BUT REMAINS A DIRECTOR KENNETH E SCIPTA 52 WAS NAMED A DIRECTOR AND PRESIDENT OF MIDWEST SPRING MANUFACTURING CO A UNIT OF PATHE MR SCIPTA SUCCEEDS LEO WYSOCKI WHO WILL BECOME A CONSULTANT TO THE COMPANY 9305140168 930514 NATIONAL WESTMINSTER IS PLANNING TO LEAVE FRENCH RETAIL MARKET LONDON NATIONAL WESTMINSTER BANK PLC SAID IT PLANS TO PULL OUT OF ITS MONEYLOSING RETAIL BANKING OPERATION IN FRANCE AS PART OF A WORLDWIDE DRIVE TO CONCENTRATE ON PROFITABLE BUSINESS AREAS BRITAIN'S SECONDLARGEST COMMERCIAL BANK ALSO SAID IT IS TALKING WITH FRANCE'S SOCIETE GENERALE ON WAYS TO COOPERATE IN CROSSBORDER PAYMENTS TRANSACTIONS AND SERVICES FOR SMALLBUSINESS CLIENTS THE TWO RELATED MOVES ARE PART OF A TREND BY BANKS TO PULL OUT OF UNPROFITABLE MARKETS PARTICULARLY WHERE THERE IS A WAY TO REPLACE A DIRECT PRESENCE BY CROSSBORDER COOPERATION WITH OTHER BANKS EARLIER THIS YEAR BANCO SANTANDER OF SPAIN ANNOUNCED ITS INTENTION TO WIND UP THE OPERATIONS OF ITS BELGIAN RETAIL BANKING UNIT TO CONCENTRATE INSTEAD ON CROSSBORDER COOPERATION WITH OTHER BANKS THROUGH ITS COMPUTERIZED TRANSACTIONS SYSTEM NATWEST HAS SET A TARGET OF EARNING A 175 RETURN ON EQUITY FOR ITS SHAREHOLDERS A LEVEL IT EXCEEDED IN 1988 BUT HASN'T COME CLOSE TO REACHING SINCE ITS EARNINGS HAVE BEEN HURT IN THE LAST FEW YEARS BY HEAVY PROVISIONS FOR TROUBLED DEBTS IN 1992 NATWEST HAD NET INCOME OF 405 MILLION 6215 MILLION EQUIVALENT TO A 35 RETURN ON EQUITY HOWEVER ANALYSTS EXPECT NATWEST TO RETURN TO ITS TARGET PROFITABILITY LEVELS BY 1995 OR 1996 ONCE ITS BAD DEBTS RETURN TO MORE NORMAL LEVELS IN FRANCE NATWEST EMPLOYS 400 PEOPLE IN 10 BRANCHES THE OLDEST OF WHICH WAS OPENED IN PARIS IN 1913 OTHER LOCATIONS INCLUDE BORDEAUX MARSEILLE LYON NICE TOULOUSE AND MONACO THE FRENCH OPERATION SHOWED A 1992 PRETAX LOSS OF 36 MILLION COMPARED WITH A 1991 LOSS OF 21 MILLION NATWEST SAID IT IS EXAMINING HOW BEST TO EFFECT THE WITHDRAWAL INCLUDING THE POSSIBLE SALE OF PART OR ALL OF ITS FRENCH NETWORK POSSIBLE PURCHASERS INCLUDE REPUBLIC NEW YORK CORP WHICH HAS EXPRESSED AN INTEREST IN ACQUIRING NATWEST'S MONACO OPERATION NATWEST ALSO SAID IT WILL MAKE A PROVISION IN ITS 1993 ACCOUNTS FOR THE LIKELY COST OF THE WITHDRAWAL INCLUDING POSSIBLE REDUNDANCY COSTS BUT THE MOVE IS NOT EXPECTED TO HAVE A MATERIAL ADVERSE EFFECT ON THE GROUP'S NET ASSETS 9305140167 930514 ENDOTRONICS CHANGES NAME MINNEAPOLIS ENDOTRONICS INC SAID IT CHANGED ITS NAME TO CELLEX BIOSCIENCES INC EFFECTIVE IMMEDIATELY THE BIOTECHNOLOGY CONCERN SAID THE NEW NAME WAS CHOSEN TO CONVEY A FULLER AND MORE ACCURATE SENSE OF OUR EXPANDED CORPORATE MISSION 9305140166 930514 BUSINESS BRIEF UNITED HEALTHCARE AGREES TO ACQUIRE HMO AMERICA IN AN EXCHANGE OF STOCK MINNEAPOLIS UNITED HEALTHCARE CORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE HMO AMERICA INC CHICAGO IN AN EXCHANGE OF STOCK VALUED AT ABOUT 3705 MILLION THE NEWS WAS MET FAVORABLY BY HMO AMERICA INVESTORS SENDING THE COMPANY'S SHARES SOARING 7875 TO 35 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE UNITED HEALTHCARE'S STOCK PRICE WAS UNCHANGED AT 5675 A SHARE IN LATE BIG BOARD TRADING YESTERDAY HMO AMERICA THE SECONDLARGEST HEALTH MAINTENANCE ORGANIZATION IN CHICAGO OWNS AND OPERATES A 300000MEMBER HEALTH PLAN CHICAGO HMO LTD COMBINED WITH UNITED'S SHARE ILLINOIS UNIT A 97300MEMBER HEALTH PLAN THE RESULTING ORGANIZATION WILL BE THE LARGEST MANAGEDCARE HEALTH SYSTEM IN THE CHICAGO AREA IN 1992 HMO AMERICA EARNED 114 MILLION OR 105 A SHARE ON REVENUE OF 3181 MILLION UNITED HEALTHCARE THE NATION'S LARGEST MULTISTATE PROVIDER OF MANAGED CARE COVERAGE TO MEDICAID PATIENTS SAID HMO OFFERS A SUBSTANTIAL COMMERCIAL BASE AND EXPERIENCE AS ONE OF THE LARGEST MEDICAID PATIENT POPULATIONS IN THE US BERNARD F MCDONAGH AN ANALYST WITH PIPER JAFFRAY INC IN MINNEAPOLIS TERMED THE ACQUISITION A VERY ASTUTE MOVE BY UNITED HEALTHCARE HAVING A MAJOR PRESENCE IN CHICAGO IS GOING BE A VERY IMPORTANT ADVANTAGE UNDER ANY FORM OF HEALTHCARE REFORM THE GOVERNMENT MAY APPROVE HE SAID UNDER THE PACT EACH OF HMO AMERICA'S 102 MILLION SHARES OUTSTANDING INCLUDING 225000 PREFERRED SHARES WILL BE EXCHANGED FOR 064 OF A SHARE OF UNITED HEALTHCARE'S COMMON STOCK AFTER THE DEAL CLOSES HMO HAS AN OPTION TO BUY 832000 SHARES OF UNITED HEALTHCARE STOCK THE TRANSACTION WHICH SHOULD BE COMPLETED BY MIDSEPTEMBER IS SUBJECT TO REGULATORY CLEARANCE AND APPROVAL BY HMO AMERICA'S STOCKHOLDERS 9305140165 930514 REVIEW & OUTLOOK EDITORIAL TRUST THEM BILL CLINTON TOLD NEW YORKERS WEDNESDAY THAT CREDIBILITY IS A DIFFICULT THING TO COME BY IN WASHINGTON TODAY INDEED FOR INSTANCE MR CLINTON FINISHED HIS VISIT UP AT LINCOLN CENTER WITH A 1500APLATE DINNER OF THE SORT HE RAILS AGAINST AND WOULD OUTLAW IN HIS CAMPAIGN REFORM AND EVERYWHERE HE WENT HE TOUTED HIS LATEST NEW IDEA A DEFICIT REDUCTION TRUST FUND THIS MAY BE THE FASTEST DEFLATING TRIAL BALLOON SENT UP YET THE CONCEPT IS EVEN MORE BOGUS THAN THE BOGUS TRUST FUNDS WASHINGTON ALREADY RUNS THERE'S NO MONEY IN ANY OF THEM THEY'RE MERELY HOLDING TANKS FOR IOUS THAT TAXPAYERS WILL SOMEDAY HAVE TO REDEEM FOR THE BENEFIT OF SOCIAL SECURITY RECIPIENTS OR WHOMEVER THIS ONE WOULD SIMPLY TALLY UP WHATEVER SPENDING CUTS AND REVENUE INCREASES MR CLINTON CHOOSES TO CLAIM RESPONSIBILITY FOR THE SUM WE'LL BE TOLD REPRESENTS HOW MUCH BIGGER THE DEFICIT MIGHT HAVE BEEN THEN MR CLINTON WILL CALL THIS DEFICIT REDUCTION THE ACTUAL DIRECTION OF THE CLINTON PROPOSALS IS ALWAYS HARD TO GET A HANDLE ON BUT WE'RE HAPPY TO EXTRACT SOME POLITICAL SUPPORT FROM THE PROPOSED FUND THE WAY WE'D SAY IT SHOULD BE INTERPRETED IS AS AN ADMISSION THAT THE REPUBLICAN FILIBUSTER WAS RIGHT AFTER ALL THAT THE REAL EMPHASIS OF THE CURRENT EXERTIONS SHOULD BE ON MAKING THE GOVERNMENT SMALLER BUT WHAT OF THE DEMOCRATS IT LOOKS TO US AS IF THE TRUST FUND IS MEANT TO PROVIDE A FIG LEAF FOR THE POOR DEMOCRATS WHO HAVE TO VOTE FOR THIS DEADLY TAXANDSPEND SCHEME IT'S NOT A VERY BIG FIG LEAF NOR IS IT LIKELY TO AVAIL MR CLINTON MUCH IN 1996 WE CAN'T IMAGINE VOTERS BEING IMPRESSED BY THE PHANTOM BILLIONS IN A DEFICIT TRUST FUND WHEN THE REAL DEFICIT WILL BE SHOOTING UP THROUGH 300 BILLION OR MORE THE PRESIDENT'S TRUST FUND WILL FURTHER TAX CREDIBILITY IN WASHINGTON TODAY 9305140164 930514 MIDAMERICAN WASTE SYSTEMS CANAL WINCHESTER OHIO MIDAMERICAN WASTE SYSTEMS INC SAID IT COMPLETED THE PLACEMENT OF 244 MILLION IN UNSECURED INDUSTRIAL REVENUE BONDS THE BONDS CARRY AN INTEREST RATE OF 4375 AND ARE DUE IN MAY 2018 THE NONHAZARDOUS SOLIDWASTE MANAGEMENT CONCERN SAID IT WILL USE THE PROCEEDS TO REDUCE OTHER UNSECURED DEBT BEARING INTEREST RATES OF BETWEEN 6 AND 10 9305140163 930514 MAXXIM MEDICAL TO POST RISE IN NET FOR ITS 2ND QUARTER BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL SUGAR LAND TEXAS MAXXIM MEDICAL INC EXPECTS TO REPORT THAT NET INCOME FOR THE FISCAL SECOND QUARTER ROSE 48 KENNETH W DAVIDSON CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SAID MR DAVIDSON CREDITED THE HOSPITAL PRODUCTS CONCERN'S IMPROVED SALES FOR THE QUARTER AND STRONG PROFIT MARGINS OF MAXXIM'S CUSTOM SURGERY TRAYS ESSENTIALLY TOOL KITS DESIGNED FOR SPECIFIC PROCEDURES HE ESTIMATED THAT EARNINGS FOR THE SECOND QUARTER ENDED APRIL 3 ROSE TO ABOUT 14 MILLION OR 23 CENTS A SHARE FROM 947000 OR A RESTATED 16 CENTS A SHARE A YEAR EARLIER THE YEARAGO PERSHARE FIGURE REFLECTS AN INCREASE IN COMMON SHARES TO SIX MILLION FROM FIVE MILLION SALES ROSE ABOUT 47 TO 28 MILLION FROM 19 MILLION HE ADDED FOR THE SIX MONTHS MR DAVIDSON ESTIMATED EARNINGS MORE THAN DOUBLED TO ABOUT 33 MILLION OR 45 CENTS A SHARE FROM 14 MILLION OR A RESTATED 24 CENTS A SHARE A YEAR EARLIER SALES ROSE ABOUT 42 TO 52 MILLION FROM 366 MILLION MR DAVIDSON SAID THAT MAXXIM WHICH CHANGED ITS NAME FROM HENLEY INTERNATIONAL INC EARLIER THIS YEAR INTRODUCED ITS CUSTOM SURGERY TRAYS JUST TWO YEARS AGO AND THAT THEY ALREADY ACCOUNT FOR AT LEAST 35 OF THE COMPANY'S SALES THE TRAYS WHICH CONTAIN ITEMS FOR SURGERY TEAMS SUCH AS GOWNS AND FACE MASKS ARE CONSIDERED TIME SAVERS BY HOSPITALS COPING WITH NURSING SHORTAGES USING THE PREPACKAGED TRAYS FREES NURSES FROM TIMECONSUMING SURGERY PREPARATION AND REDUCES INVENTORIES MR DAVIDSON SAID MAXXIM EXPECTS ITS RESEARCH AND DEVELOPMENT BUDGET TO BE IN THE RANGE OF 16 MILLION TO 2 MILLION ABOUT THE SAME AS LAST YEAR THE COMPANY IS STILL SPENDING RESEARCH DOLLARS TO IMPROVE A PRODUCT IT INTRODUCED LAST YEAR A VIDEO DEVICE THAT HELPS EMPLOYERS ANALYZE THE PHYSICAL DEMANDS OF CERTAIN TASKS AND PREDICT THEIR CAPACITY TO HANDLE THE WORK WITHOUT INJURY MR DAVIDSON SAID MAXXIM CURRENTLY HAS 30 MILLION OF CASH ON HAND UP FROM 18 MILLION A YEAR AGO HE ADDED THAT MAXXIM IS LOOKING INTO ACQUIRING OTHER MEDICAL PRODUCTS CONCERNS WE'RE LOOKING AT SEVERAL THINGS ONE COULD BE ANNOUNCED IN THE NEXT 60 DAYS IN LATE TRADING ON THE AMERICAN STOCK EXCHANGE MAXXIM SHARES WERE QUOTED AT 14125 UP 25 CENTS 9305140162 930514 SHOWSCAN AND OMNI AGREE IN PRINCIPLE TO MERGE OPERATIONS COMBINED ENTITY IS BETTING SIMULATORRIDE THEATERS WILL BE WAVE OF THE FUTURE BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL CULVER CITY CALIF IN THE MALL OF THE FUTURE SHOPPERS LOOKING TO RELIEVE STRESS WILL BE ABLE TO SCREAM THEIR LUNGS OUT ON RUNAWAY MINE TRAINS AND SPACESHIPS PLUNKED DOWN NEXT TO THE FOOD COURT THAT ANYWAY IS THE VISION OF SHOWSCAN CORP AND OMNI FILMS INTERNATIONAL INC TWO MAKERS OF FLIGHTSIMULATORTYPE RIDES WHO HAVE AGREED IN PRINCIPLE TO MERGE THEIR OPERATIONS THE COMPANIES EACH WITH ANNUAL REVENUE OF AROUND 11 MILLION AGREED IN PRINCIPLE TO MERGE IN A NEW ENTITY THAT WILL FOCUS ON SHOWSCAN'S GOAL OF OPENING A CHAIN OF OWNEDANDOPERATED SIMULATORRIDE THEATERS IN SHOPPING MALLS AND OTHER ENTERTAINMENT VENUES SHOWSCAN'S FIRST SUCH VENUE WILL BE AT UNIVERSAL CITYWALK THE SHOPPING AND ENTERTAINMENT COMPLEX OPENING THIS MONTH AT UNIVERSAL STUDIOS HOLLYWOOD IN CALIFORNIA HOLDERS OF SHOWSCAN'S 47 MILLION SHARES AND OMNI'S THREE MILLION SHARES WOULD RECEIVE STOCK IN THE COMBINED ENTITY ON A ONEFORONE BASIS FRED HOLLINGSWORTH III CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF OMNI WILL SERVE AS CHIEF EXECUTIVE AND PRESIDENT OF THE COMBINED COMPANIES IT HASN'T YET BEEN DETERMINED WHAT TITLE ROY H AARON SHOWSCAN'S PRESIDENT AND CEO WILL HOLD THE COMPANIES SAID THE COMPANIES WHICH EACH EMPLOY ABOUT 50 PEOPLE WILL ELIMINATE ABOUT 25 JOBS WHEN THEY MERGE IN LATE NATIONAL OVERTHECOUNTER TRADING YESTERDAY SHARES OF CULVER CITY CALIFBASED SHOWSCAN CLOSED AT 475 DOWN 1125 AND SHARES OF SARASOTA FLABASED OMNI CLOSED AT 425 UP 125 THE COMBINATION GIVES SHOWSCAN ACCESS TO OMNI'S MOTIONBASES THE PLATFORMS THAT PROVIDE THE ROCKANDROLL MOVEMENT IN SIMULATOR RIDES SIMULATOR RIDES WHICH COMBINE A MOVIE WITH MOVING SEATS TO GIVE THE ILLUSION OF SPACE TRAVEL OR OTHER ADVENTURES WERE FIRST POPULARIZED WHEN STAR TOURS OPENED AT DISNEYLAND IN 1987 AND HAVE SINCE MOVED BEYOND AMUSEMENT PARKS TO OTHER VENUES SUCH AS CASINOS AND TRAVELING FAIRS UNTIL NOW SHOWSCAN HAS PURCHASED ITS MOTION BASES FROM OUTSIDE VENDORS BUT OMNI'S EQUIPMENT IS MORE FLEXIBLE AND COMES IN COMPACT TWOSEAT VERSIONS THAT ARE IDEAL FOR LAYING OUT SMALLER VENUES IN SHOPPING MALLS AMONG OMNI'S MOST SUCCESSFUL RIDES IS ONE LOCATED IN A BOSTON FURNITURE STORE FOR OMNI THE MERGER GIVES IT ACCESS TO SHOWSCAN'S SUPERIOR FILM TECHNOLOGY WHICH EMPLOYS HIGHRESOLUTION 70MM FILM PHOTOGRAPHED AND PROJECTED AT 60 FRAMES PER SECOND RATHER THAN THE CONVENTIONAL 35MM FILM PROJECTED AT 24 FRAMES PER SECOND SHOWSCAN ALSO HAS A BIGGER LIBRARY OF SIMULATOR FILMS AMONG THEM THE NEW DEVIL'S MINE RIDE THAT PRODUCE A STRONG ROYALTY STREAM THE TWO COMPANIES ARE CURRENTLY COLLABORATING ON A 40SEAT SIMULATOR THEATER FOR BOOMTOWN CASINO NEAR RENO NEV THE COMBINATION ALSO WILL GIVE THE COMPANIES A BETTER EDGE IN CHALLENGING INDUSTRY LEADER IWERKS ENTERTAINMENT A CLOSELY HELD BURBANK CALIF CONCERN WITH ANNUAL REVENUE IT CLAIMS EXCEEDS SHOWSCAN'S AND OMNI'S COMBINED SHOWSCAN HAS SUFFERED LOSSES OF LATE A 25 MILLION NET LOSS FOR THE NINE MONTHS ENDED DEC 31 AND COMES INTO THE MERGER WITH A NET OPERATINGLOSS CARRYFORWARD OF BETWEEN 17 MILLION AND 18 MILLION CHIEF FINANCIAL OFFICER JAMES SORENSEN SAID TO DATE SHOWSCAN HAS SOLD 41 SIMULATOR THEATERS AND OMNI 25 THEATERS IN THE US EUROPE AND ASIA MARK YOUNG IWERKS' SENIOR VICE PRESIDENT OF MARKETING SAID THE SHOWSCAN/OMNI MERGER REINFORCES THE VIABILITY OF THE SIMULATOR CATEGORY BUT VOWED THAT IWERKS IS GOING TO MAINTAIN OUR COMPETITIVE EDGE IWERKS IN MARCH REACHED AN AGREEMENT WITH JAPANESE TRADER ITOCHU CORP TO DEVELOP A CHAIN OF 30 MILLION CINETROPOLIS ENTERTAINMENT CENTERS IN ASIA COMBINING SIMULATOR RIDES GIANTSCREEN THEATERS AND SOCALLED VIRTUAL REALITY ATTRACTIONS IWERKS IS ALSO LOOKING FOR STRATEGIC PARTNERS TO DEVELOP A CINETROPOLIS CHAIN IN THE US 9305140161 930514 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 283075 METRIC TONS IN THE WEEK ENDED SATURDAY A 08 INCREASE FROM 280771 TONS THE PREVIOUS WEEK AND A 14 RISE FROM 247780 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 5044779 TONS A 39 INCREASE FROM 4856862 TONS A YEAR EARLIER 9305140160 930514 WHO'S NEWS ALL FOR A DOLLAR INC ALL FOR A DOLLAR INC SPRINGFIELD MASS THIS RETAILER SAID IT NAMED LESTER E WOLSER CHIEF FINANCIAL OFFICER MR WOLSER 56 YEARS OLD SUCCEEDS ROGER A SLATE WHO WILL CONTINUE TO SERVE AS PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR THE COMPANY SAID MR WOLSER IS THE FORMER CHIEF FINANCIAL OFFICER FOR DEB SHOPS INC A PHILADELPHIA SPECIALTY RETAILER 9305140159 930514 ECONOMY JOBS BILL REMAINS STALLED IN CONGRESS PROVING AN EMBARRASSMENT TO CLINTON BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A CONTINUED IMPASSE OVER THE WHITE HOUSE JOBS BILL IS PROVING AN EMBARRASSMENT FOR BOTH PRESIDENT CLINTON AND THE DEMOCRATIC LEADERSHIP IN CONGRESS WHICH HAS FAILED SO FAR TO COME UP WITH EVEN MODEST CUTS TO FINANCE THE MEASURE ACTION ON THE ISSUE WAS POSTPONED AGAIN YESTERDAY AS THE HOUSE APPROPRIATIONS COMMITTEE INSTEAD APPROVED A NUTSANDBOLTS 18 BILLION SUPPLEMENTAL SPENDING BILL THAT INCLUDES NONE OF THE 920 MILLION IN JOBS AND PUBLIC WORKS FUNDS SOUGHT BY THE ADMINISTRATION HAVING CAPTURED THE WHITE HOUSE FOR THE FIRST TIME IN 12 YEARS DEMOCRATS FACE THE PROSPECT OF GIVING THEIR NEW PRESIDENT LESS MONEY FOR SUMMER JOBS FOR DISADVANTAGED TEENAGERS THAN WAS PROVIDED LAST YEAR UNDER REPUBLICAN PRESIDENT GEORGE BUSH BUT HOUSE SPEAKER THOMAS FOLEY D WASH SAID IT IS TOO EARLY TO WRITE THE SUMMERJOBS FUNDS OFF AND ADMINISTRATION OFFICIALS SAID THEY EXPECT TO SEND LAWMAKERS A FORMAL REQUEST FOR THE MONEY TODAY MANEUVERING OVER THE ISSUE HAS AN UNCANNY RESEMBLANCE TO DAVE THE NEW MOVIE SATIRE OF WASHINGTON'S WAYS IN THAT HOLLYWOOD SCRIPT AN IMPOSTOR PRESIDENT PLAYED BY KEVIN KLINE CALLS IN AN OLD ACCOUNTANT FRIEND TO COME UP WITH AN ESTIMATED 650 MILLION IN SAVINGS TO HELP PRESERVE SHELTERS FOR THE HOMELESS MR CLINTON IS PROPOSING TO ADD LESS THAN HALF THAT SUM 320 MILLION FOR SUMMER JOBS BUT HAS FAILED SO FAR TO GET AGREEMENT ON HOW TO OFFSET THE COSTS AND STAY WITHIN STATUTORY SPENDING CAPS GOVERNING APPROPRIATIONS THE CHANGING SIZE OF THE JOBS PACKAGEWHICH HAS GONE FROM 36 BILLION TO 920 MILLION IN THE PAST WEEK ALONE FRUSTRATES THE APPROPRIATIONS COMMITTEE LEADERSHIP WHICH FEARS BEING BLINDSIDED BY ACROSSTHEBOARD CUTS THE ADMINISTRATION SEEKS TO PAY FOR THE NEW SPENDING THE STALEMATE ILLUSTRATES THE ENTRENCHED CHARACTER OF THE COMMITTEE MEMBERS WHO TAKE PRIDE IN MANAGING A HALFTRILLION DOLLARS EACH YEAR BUT ARE SO SKITTISH THEY RESIST EVEN THE MODEST SPENDING CUTS NEEDED TO RESOLVE THE CURRENT FIGHT AFTER PROMISING TO REVISIT THE ISSUE AGAIN IN THE FUTURE THE HOUSE PANEL WAS CONTENT TO FOCUS YESTERDAY ON THE 18 BILLION SUPPLEMENTAL BILL TWOTHIRDS OF THE SPENDING INCLUDING 750 MILLION TO PAY FOR THE RECENT US MILITARY MISSION TO SOMALIA WOULD GO TO THE PENTAGON THE COMMITTEE ADDED 10 MILLION FOR AN INITIATIVE TO IMPROVE TEACHING OF FOREIGN LANGUAGES FOR INTELLIGENCE AGENCIES THAT HAS LONG BEEN SOUGHT BY FORMER SENATE INTELLIGENCE COMMITTEE CHAIRMAN DAVID BOREN BUT THE OKLAHOMA DEMOCRAT APPARENTLY NEEDED WHITE HOUSE INTERCESSION TO GET THE MONEY FROM THE PANEL BECAUSE HE HAS BEEN AT ODDS WITH HIS OLD MENTOR SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD D WVA THE COMMITTEE ALSO APPROVED A PROVISION TO HELP ENSURE THAT FEDERAL FEES IMPOSED ON POWERFUL AGRICULTURAL INTERESTS IN THE CENTRAL VALLEY PROJECT IN CALIFORNIA WHICH ARE ESTIMATED AT NEARLY 50 MILLION ARE RETURNED TO THE SAME WATER DISTRICTS FOR RELATED ENVIRONMENTAL EXPENDITURES THE CHIEF SPONSOR OF THE PROVISION WAS CALIFORNIA REP VIC FAZIO A MEMBER OF THE DEMOCRATIC LEADERSHIP THE MEASURE WOULD GIVE THE ENERGY AND WATER APPROPRIATIONS SUBCOMMITTEE ON WHICH HE SITS CONTROL OF THE FUNDS BUT COMING AT A TIME WHEN THE WHITE HOUSE WANTS TO IMPOSE SIMILAR SURCHARGES ON SUBSIDIZED IRRIGATION PROJECTS IN THE WEST THE LANGUAGE APPEARS TO SET A STANDARD OF LOCAL CONTROL THAT WOULD REDUCE INTERIOR DEPARTMENT FLEXIBILITY IN ALLOCATING THE RECEIPTS WITHIN WHITE HOUSE ACCOUNTS THE BILL PROMISES THE ADMINISTRATION UNUSUAL DISCRETION TO TRANSFER APPROPRIATIONS FOR ITS OWN PURPOSES BY A 3321 MARGIN DEMOCRATS EASILY BEAT BACK A REPUBLICAN ATTEMPT TO IMPOSE TIGHTER STATUTORY CONTROL OF HOW THE WHITE HOUSE CAN USE MAIL AND TELEPHONE LISTS GENERATED FROM LETTERS AND CALLS TO THE PRESIDENT THE AMENDMENT OFFERED BY FRESHMAN OKLAHOMA REP ERNEST ISTOOK SOUGHT TO PROHIBIT ANY OF THE DATA BEING FORWARDED TO OUTSIDE ORGANIZATIONS LIKE THE DEMOCRATIC NATIONAL COMMITTEE FOR POLITICAL MAILINGS OR GRASSROOTS CAMPAIGNS THE ADMINISTRATION HAS ALREADY TESTIFIED IT HAS NO INTENTION OF USING THE INFORMATION BUT MR ISTOOK ARGUED THAT THE PROPOSED PROHIBITION WAS NO MORE THAN THE HOUSE IMPOSES ON ITSELF IN ITS OWN ETHICS MANUAL IF WE MEAN WHAT WE SAY HE ASKED WHAT'S WRONG WITH PUTTING IT IN WRITING 9305140158 930514 LUFTHANSA POSTS 2441 MILLION FULLYEAR LOSS DEPUTY CHAIRMAN WARNS RETURN TO PROFITABILITY ISN'T SEEN BEFORE 1994 BY ALEX KETO SPECIAL TO THE WALL STREET JOURNAL FRANKFURT LUFTHANSA AG POSTED A LOSS FOR THE SECOND YEAR IN A ROW IN 1992 AND DEPUTY CHAIRMAN KLAUS G SCHLEDE WARNED THAT HE DOESN'T EXPECT THE GERMAN AIR CARRIER TO RETURN TO PROFITABILITY BEFORE 1994 LOOKING AT THE WHOLE OF 1993 WE DO NOT ANTICIPATE A RETURN TO PROFITABILITY MR SCHLEDE SAID AT A NEWS CONFERENCE TO ANNOUNCE THE 1992 RESULTS BUT IN 1994 HE SAID WE WANT TO HAVE A NET PROFIT FOR 1992 LUFTHANSA POSTED A GROUP NET LOSS OF 393 MILLION MARKS 2441 MILLION DOWN FROM THE YEAREARLIER LEVEL OF 444 MILLION MARKS SALES INCREASED 71 TO 1724 BILLION MARKS 1071 BILLION IN 1992 FROM 161 BILLION MARKS IN THE FIRST QUARTER OF 1993 THE COMPANY'S UNCONSOLIDATED PRETAX LOSS NARROWED FURTHER TO 245 MILLION MARKS FROM THE YEAREARLIER LEVEL OF 386 MILLION MARKS LUFTHANSA DIDN'T GIVE A GROUP NET LOSS FOR THE FIRST QUARTER FOR THE SECOND YEAR RUNNING LUFTHANSA WON'T PAY A DIVIDEND THE LAST TIME LUFTHANSA PAID A DIVIDEND WAS IN 1990 WHEN IT PAID 8 OF THE NOMINAL VALUE OF PREFERRED SHARES IT PAID NO DIVIDEND ON ITS ORDINARY SHARES IN 1990 NOTING THAT THE SIZE OF THE AIR CARRIER'S LOSSES ARE DIMINISHING MR SCHLEDE INSISTED THAT COSTCUTTING MEASURES IMPOSED IN MID1992 ARE TAKING EFFECT WE HAVEN'T COME OUT OF THE FOUL WEATHER COMPLETELY BUT WE ARE IN COMPLETE CONTROL OF THE AIRCRAFT HE NOTED ANALYSTS HOWEVER WEREN'T SO SURE THE FACT THEY PUBLISHED A LOSS IS NO SURPRISE SAID KLAUS PERSCHBACHER A NOMURA RESEARCH INSTITUTE DEUTSCHLAND GMBH ANALYST BUT THE IMPROVEMENT IS NOT THAT MUCH IT'S NOT AN INCENTIVE FOR THE SHARES TO GO UP MUCH HE ADDED THAT IT'S DOUBTFUL GIVEN THE COMPETITION THAT LUFTHANSA WOULD BE ABLE TO TURN ITS OPERATIONS AROUND SIGNIFICANTLY IN THE COMING YEAR NEVERTHELESS LUFTHANSA'S SHARES CLOSED YESTERDAY WITH A GAIN OF TWO MARKS 124 AT 105 MARKS 6522 FOLLOWING THE PUBLICATION OF THE 1992 AND FIRSTQUARTER 1993 FIGURES ALTHOUGH MR SCHLEDE MAINTAINED THAT THE COMPANY WHICH IS MAJORITY OWNED BY THE GERMAN GOVERNMENT IS ON THE RIGHT COURSE HE SAID 1992 RESULTS WERE TOTALLY UNSATISFACTORY WHILE SALES INCREASED PROFIT MARGINS DECLINED THANKS IN PART TO COMPETITION ON THE NORTH ATLANTIC ROUTES AND THE DEVALUATION OF SEVERAL EUROPEAN CURRENCIES AGAINST THE MARK MR SCHLEDE SAID HE NOTED THAT DEVALUATIONS OF THE BRITISH POUND THE SWEDISH KRONA THE SPANISH PESETA AND THE ITALIAN LIRA GAVE OTHER CARRIERS A PRICE EDGE OVER LUFTHANSA OF BETWEEN 16 AND 22 LUFTHANSA CHAIRMAN JUERGEN WEBER SAID THE PROBLEMS FACING THE AIRLINE INDUSTRY WERE LARGELY STRUCTURAL AND STEMMED MOSTLY FROM THE US RATHER THAN CONTINUE TO SQUEEZE STAFF AND OTHER COSTS OUT OF LUFTHANSA HE SAID THE INDUSTRY WHICH HAS GONE HAYWIRE SHOULD BE REFORMED DEREGULATION IN THE US HAS BEEN A FLOP HE SAID WHAT HAS BEEN CALLED A STRENGTHENING OF COMPETITION HAS BEEN THE REVERSE HE ADDED THAT US CARRIERS HAVE BOOSTED TICKET PRICES SHARPLY ON ROUTES WITHOUT COMPETITION TO SUBSIDIZE OTHER ROUTES THIS PLUS US BANKRUPTCY LAWS THAT PROTECT AIRLINES FROM THEIR CREDITORS WHILE THEY CONTINUE OPERATIONS HAS LED TO A DISASTROUS PRICE WAR OVER THE NORTH ATLANTIC AND DUMPING BY US AIR CARRIERS MR WEBER SAID ALTHOUGH LUFTHANSA'S STREAMLINING EFFORTS SAVED THE COMPANY ONE BILLION MARKS IN 1992 SCHLEDE SAID COSTS FROM PERSONNEL FEES FUEL CUSTOMER SERVICE MATERIALS RENT AND OTHER ITEMS INCREASED 37 TO 1287 BILLION MARKS FROM 1241 BILLION MARKS IN 1991 AMONG THE ITEMS THAT BOOSTED OPERATING EXPENSES WERE FEES AND CHARGES FOR AIR TRAFFIC CONTROL WHICH INCREASED TO 247 BILLION MARKS FROM 213 BILLION MARKS CUSTOMER SERVICE COSTS ALSO ROSE SHARPLY TO 107 BILLION MARKS FROM 924 MILLION MARKS AND RENTAL AND MAINTENANCE COSTS SURGED TO 716 MILLION MARKS FROM 585 MILLION MARKS PERSONNEL COSTS SHOWED A MODEST RISE TO 465 BILLION MARKS FROM 447 BILLION MARKS LARGELY BECAUSE OF THE REDUCTION IN LUFTHANSA'S STAFF DURING 1992 LUFTHANSA'S WORK FORCE WAS CUT TO 49292 WORKERS COMPARED WITH THE YEAREARLIER LEVEL OF 50826 EMPLOYEES 9305140157 930514 WHO'S NEWS HUMANA INC HUMANA INC LOUISVILLE KY DAVID A JONES JR WAS NAMED TO THE BOARD OF THIS PROVIDER OF MANAGED HEALTHCARE SERVICES MR JONES 35 IS AN ATTORNEY WITH THE LAW FIRM HIRN REED & HARPER IN LOUISVILLE HE ALSO IS THE SON OF HUMANA'S CHAIRMAN DAVID A JONES HIS ELECTION RAISES THE NUMBER OF DIRECTORS TO SEVEN 9305140156 930514 WHO'S NEWS CONTINENTAL AIRLINES CONTINENTAL AIRLINES HOUSTON JOEL COWAN A REAL ESTATE DEVELOPER AND OWNER OF ATLANTABASED COWAN & ASSOCIATES AN INVESTMENT COMPANY WAS NAMED A BOARD MEMBER OF THE CARRIER HE SUCCEEDS JIM O'BRIEN WHO RESIGNED 9305140155 930514 RANK SAYS ITS PROFIT IS HIGHER DESPITE WEAKNESS IN VENTURES SPECIAL TO THE WALL STREET JOURNAL LONDON RANK ORGANISATION PLC SAID PROFIT HAS BEEN MARGINALLY HIGHER SO FAR THIS FISCAL YEAR WHICH BEGAN NOV 1 DESPITE WEAKER PERFORMANCE IN ITS XEROX JOINTVENTURE DIVISIONS RANK WITH ITS MAIN BUSINESS LINES IN LEISURE AND ENTERTAINMENT TOLD ANALYSTS AT A MEETING YESTERDAY THAT RESULTS FROM UK BUSINESSES WERE MIXED THE NORTH AMERICAN MARKET IS IMPROVING BUT OTHER MARKETS REMAIN DIFFICULT THE COMPANY SAID REVENUE AT RANK XEROX LTD WAS FLAT IN THE FIRST QUARTER ENDING JAN 31 DECLINES IN REVENUE IN WESTERN EUROPEAN MARKETS WERE OFFSET BY A 30 GROWTH IN REVENUE FROM EMERGING AFRICAN AND EASTERN EUROPEAN MARKETS THE COMPANY SAID RANK XEROX IS A JOINT VENTURE WITH XEROX CORP OF STAMFORD CONN FUJI XEROX LTD OPERATIONS WERE HURT BY A WEAK JAPANESE DOMESTIC MARKET BUT THERE HAVE BEEN SIGNS OF IMPROVEMENT THE COMPANY SAID FUJI XEROX IS A JAPANESE JOINT VENTURE BETWEEN FUJI PHOTO FILM CO AND RANK XEROX PROFIT MARGINS ARE DEPRESSED IN RANK'S HOLIDAY AND HOTEL DIVISIONS ALTHOUGH REVENUE HAS RISEN THE COMPANY SAID RESULTS FROM REMAINING HOTELS ARE LOWER THAN LAST YEAR THE COMPANY PREVIOUSLY HAS SAID IT IS NEGOTIATING TO SELL SOME HOTELS RANK'S ODEON CINEMAS ATTRACTED MORE VIEWERS THAN LAST YEAR WITH ADMISSIONS INCREASING 10 LOSSES AT VIDEO DISTRIBUTION DECLINED THE COMPANY SAID NEW COMPUTER SYSTEMS INSTALLED LAST YEAR ARE IMPROVING THE DIVISION'S OPERATING EFFICIENCY THE DIVISION DISTRIBUTES VIDEO AND AUDIO PRODUCTS TO RETAIL OUTLETS IN THE US VOLUMES ARE STEADY AT VIDEO DUPLICATION WHICH DUPLICATES VIDEOS FOR MAJOR MOVIE PRODUCERS AND DISTRIBUTORS SPENDING PER CUSTOMER AT RANK'S BINGO HOUSES IS UP BY MORE THAN 5 ALTHOUGH ADMISSIONS ARE COMPARABLE TO THE PREVIOUS YEAR'S LEVELS THE COMPANY SAID CASINO ATTENDANCE INCREASED SLIGHTLY AND PERCUSTOMER SPENDING INCREASED 3 RANK IS A LEADING CASINO OPERATOR IN THE UK ADMISSIONS AT RANK'S NIGHTCLUBS ARE UP 13 WHILE SPENDING PER CUSTOMER IS SLIGHTLY LOWER ASSOCIATED LEISURE A DIVISION THAT INSTALLS MAINTAINS AND COLLECTS CASH FROM COMPANYOWNED SKILL AND PRIZE MACHINES CONTINUES TO OPERATE AT BREAKEVEN LEVELS THE COMPANY SAID 9305140154 930514 UAW MAY USE TWOFIRM STRATEGY IN AUTO TALKS DETROIT THE UNITED AUTO WORKERS ISN'T RULING OUT USING TWO CONTRACT TARGETS IN THIS SUMMER'S AUTO TALKS UAW PRESIDENT OWEN BIEBER SAID SUCH A PROCESS COULD RESULT IN A SEPARATE DEAL FOR AILING GENERAL MOTORS CORP WHICH IS IN THE MIDST OF SHEDDING THOUSANDS OF JOBS GM BADLY NEEDS MORE FLEXIBILITY IN THE CURRENT CONTRACT'S JOB SECURITY PROVISIONS TO HELP IT DOWNSIZE SMOOTHLY SAID ANALYST WENDY NEEDHAM OF SMITH BARNEY HARRIS UPHAM & CO FORD MOTOR CO AND CHRYSLER CORP ARE IN A BETTER FINANCIAL POSITION TO GUARANTEE JOBS TO ALL THEIR WORKERS MS NEEDHAM ADDED THE UNION'S THREEYEAR CONTRACTS WITH THE BIG THREE AUTO MAKERS EXPIRE SEPT 14 TYPICALLY THE UNION PICKS ONE COMPANY AS ITS TARGET IN LATE AUGUST NEGOTIATES A CONTRACT WITH IT AND THEN GETS THE TWO OTHERS TO SIGN THE SAME DEAL THE TWOTARGET STRATEGY ISN'T NEW MR BIEBER SAID BUT LABOR EXPERTS SAID THAT SUCH A STRATEGY IS STILL UNLIKELY AT THIS POINT I THINK WHAT THE UNION IS SAYING IS LET'S START BARGAINING AT TWO AND SEE WHICH ONE WILL GIVE US THE BETTER DEAL SAID HARRY KATZ A PROFESSOR OF INDUSTRIAL RELATIONS AT CORNELL UNIVERSITY 9305140153 930514 WHO'S NEWS WORLDCORP WORLDCORP HERNDON VA THIS AIR TRANSPORTATION AND AUTOMATED ORDERING SYSTEMS CONCERN SAID IT NAMED WILLIAM F GOROG 67 YEARS OLD CHAIRMAN HE SUCCEEDS W JERROLD SCOUTT JR 71 WHO WILL REMAIN ON THE COMPANY'S BOARD MR GOROG WAS PREVIOUSLY VICE CHAIRMAN OF WORLDCORP AND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS US ORDER AUTOMATED ORDERING SYSTEMS UNIT 9305140152 930514 WHO'S NEWS WHEELABRATOR TECHNOLOGIES INC WHEELABRATOR TECHNOLOGIES INC HAMPTON NH JOHN D SANFORD 39 YEARS OLD CURRENTLY STAFF VICE PRESIDENT FINANCE WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS ENVIRONMENTAL SERVICES CONCERN SUCCEEDING JAMES E KOENIG WHO REMAINS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF WHEELABRATOR'S PARENT WASTE MANAGEMENT INC 9305140151 930514 TEXAS INSTRUMENTS REDEMPTION DALLAS TEXAS INSTRUMENTS INC SAID THAT ON JUNE 25 IT WILL REDEEM 37 MILLION OF ITS 111 MILLION 226 DEPOSITARY SHARES OUTSTANDING OF RECORD MAY 24 THE ELECTRONICS MAKER SAID EACH DEPOSITARY SHARE WILL BE REDEEMED FOR ABOUT 065 OF A COMMON SHARE PLUS 345 CENTS A SHARE THE PAYOUT REPRESENTS A CALL PRICE OF ABOUT 4074 FOR EACH DEPOSITARY SHARE PLUS AN AMOUNT IN CASH EQUAL TO THE ACCRUED AND UNPAID DIVIDEND FROM MAY 1 THROUGH JUNE 25 TEXAS INSTRUMENTS SAID THE COMPANY SAID THE NUMBER OF COMMON SHARES REDEEMED FOR EACH DEPOSITARY SHARE IS BASED ON A STOCK PRICE OF 62475 A SHARE THE AVERAGE CLOSING PRICE OF THE COMPANY'S STOCK OVER A FIVEDAY PERIOD ENDING MAY 11 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY TEXAS INSTRUMENTS CLOSED AT 6175 DOWN 875 CENTS 9305140150 930514 DIVIDEND NEWS MILGRAY ELECTRONICS INC MILGRAY ELECTRONICS INC FARMINGDALE NY DECLARED A 2FOR1 STOCK SPLIT EFFECTIVE JUNE 14 TO STOCK OF RECORD JUNE 1 THE COMPANY CURRENTLY HAS ABOUT 800000 SHARES OUTSTANDING SHARES OF THE ELECTRONICS DISTRIBUTOR ROSE 4 ON THE NEWS YESTERDAY CLOSING AT 43 IN NATIONAL OVERTHECOUNTER TRADING 9305140149 930514 FORD MONDEO TO BE CALLED CONTOUR MYSTIQUE IN US DEARBORN MICH FORD MOTOR CO SAID ITS NEW WORLD CAR NOW ON SALE IN EUROPE AS THE FORD MONDEO WILL BE SOLD IN NORTH AMERICA AS THE FORD CONTOUR AND THE MERCURY MYSTIQUE FORD ANNOUNCED THE NORTH AMERICAN NAMES OF THE NEW COMPACT SEDAN AT ITS ANNUAL SHAREHOLDERS MEETING HERE YESTERDAY THE CONTOUR AND MYSTIQUE WILL BE LAUNCHED IN THE US AND CANADA EARLY NEXT YEAR A FORD SPOKESMAN SAID THE NAMES COUNTOUR AND MYSTIQUE SCORED BETTER THAN MONDEO IN THE COMPANY'S SURVEYS OF US CONSUMERS IN EUROPE ORDERS FOR THE MONDEO HAVE REACHED 150000 VEHICLES SO FAR THE COMPANY SAID BASED ON THE RECEPTION IN EUROPE I'M VERY ENCOURAGED SAID FORD CHAIRMAN HAROLD A POLING YESTERDAY'S ANNUAL MEETING WAS THE LAST THAT MR POLING 67 YEARS OLD WILL PRESIDE OVER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE PREVIOUSLY ANNOUNCED HIS INTENTION TO RETIRE LATER THIS YEAR THE ANNUAL MEETING ALSO WAS FORD'S SHORTEST EVER IT LASTED 71 MINUTESBEATING LAST YEAR'S RECORD TIME OF 98 MINUTES THE LONGEST ANNUAL MEETING LASTED FOUR HOURS AND 14 MINUTES IN 1979 9305140148 930514 A HEADY P/E RATIO IS SET IN SINGAPORE TECHNOLOGIES OFFERING SINGAPORE GOVERNMENTOWNED SINGAPORE TECHNOLOGIES INDUSTRIAL CORP SAID IT WILL OFFER A 25 STAKE AT A PRICEY 23 TIMES EARNINGS IN ITS INITIAL PUBLIC OFFERING THE OFFERING BASED ON ESTIMATED EARNINGS FOR 1993 IS WELL ABOVE THE LOCAL STOCK MARKET'S TYPICAL PRICE/EARNINGS RATIO OF 18 TO 19 MARKET OBSERVERS CONSIDER THE IPO A PRELUDE TO SEPTEMBER'S GIANT PRIVATIZATION OF SINGAPORE TELECOMMUNICATION PTE THAT OFFERING IS EXPECTED TO BE PRICED AGGRESSIVELY A VIEW REINFORCED BY THE TERMS SET FOR SINGAPORE TECHNOLOGIES SINGAPORE TECHNOLOGIES SAID IT WILL OFFER 683 MILLION SHARES AT A FIXED PRICE OF 85 SINGAPORE CENTS 53 US CENTS A SHARE AND 1024 MILLION SHARES TO BE SOLD BY TENDER OR AUCTION AT A MINIMUM PRICE OF 85 SINGAPORE CENTS THE COMPANY EXPECTS NET PROCEEDS OF S141 MILLION US875 MILLION IF ALL SHARES SELL AT 85 CENTS SINGAPORE TELECOM A GOVERNMENTOWNED TELEPHONE MONOPOLY IS EXPECTED IN SEPTEMBER TO SELL ABOUT S4 BILLION US248 BILLION TO S5 BILLION OF STOCK SINGAPORE TECHNOLOGIES IS AN OFFSHOOT OF THE COUNTRY'S DEFENSE MINISTRY WHICH ACCOUNTS FOR UP TO 25 OF ITS REVENUE ITS SIX CORE BUSINESSES ARE ELECTRONICS AND INFORMATION TECHNOLOGY PRECISION ENGINEERING INDUSTRIAL LEASING CONSTRUCTION AND DEVELOPMENT FOOD PROCESSING AND DISTRIBUTION AND TRAVEL AND LEISURE THE COMPANY WHICH HAS 3500 EMPLOYEES IS PITCHING ITSELF AS A WAY FOR INVESTORS TO PROFIT FROM INFRASTRUCTURE DEVELOPMENT IN ASIA IT IS A PARTNER IN THE DEVELOPMENT OF INDUSTRIAL PARKS OR ESTATES ON THE INDONESIAN ISLANDS OF BATAM AND BINTAN NEAR SINGAPORE AND IS LEADING A GROUP THAT IS BUILDING A GOLF AND BEACH RESORT ON BINTAN THE COMPANY FORECASTS A 51 INCREASE IN NET INCOME IN 1993 TO S227 MILLION OR 37 CENTS A SHARE ON REVENUE OF S828 MILLION IN 1992 IT POSTED NET OF S15 MILLION OR 35 CENTS A SHARE ON REVENUE OF S7279 MILLION THE 1993 PERSHARE FIGURE TAKES INTO ACCOUNT THE IPO SINGAPORE'S OVERSEAS UNION BANK LTD IS LEAD MANAGER AND UNDERWRITER OF THE OFFERING 9305140147 930514 US MAY BUY BOEING PLANES FOR 5 BILLION AIR FORCE MOVE COULD HURT MCDONNELL DOUGLAS JET REPAIR BID BY LOCKHEED BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL THE AIR FORCE MAY BUY AS MUCH AS 5 BILLION OF BOEING CO WIDEBODY JETS IN A MOVE THAT ULTIMATELY COULD HAMPER FUNDING FOR THE CONTROVERSIAL MCDONNELL DOUGLAS CORP C17 MILITARY TRANSPORT SEATTLEBASED BOEING IS OFFERING THE AIR FORCE A CHOICE OF EITHER 58 OF ITS 767300 FREIGHTER JETS OR 33 FREIGHTER VERSIONS OF ITS 747400 JUMBO JET AS REPLACEMENTS FOR THE SERVICE'S AGING FLEET OF 254 LOCKHEED CORPBUILT C141 TRANSPORTS ACCORDING TO COMPANY AND GOVERNMENT OFFICIALS UNDER BOEING PROPOSALS DELIVERIES WOULD BE STRETCHED OVER FIVE YEARS BEGINNING IN 1995 AND WOULD HELP FILL OUT DELIVERY SCHEDULES THINNED BY WEAKNESS IN AIRLINE ORDERING SEPARATELY BOEING ALSO IS EXPECTED TO ANNOUNCE TODAY THAT IT HAS SOLD FIVE OF ITS 767300 TWINJETS TO SHANGHAI AIRLINES OF CHINA IN A TRANSACTION VALUED AT ABOUT 450 MILLION BOEING'S DISCUSSIONS WITH SENIOR OFFICIALS IN THE AIR FORCE AND PENTAGON AND WITH KEY STAFFERS AND MEMBERS IN CONGRESS HAVE BEEN EXTENSIVE AND ARE SERIOUS IN TONE SAID MIKE BOYCE DIRECTOR OF BUSINESS DEVELOPMENT FOR BOEING'S MILITARY AIRPLANES UNIT HE SAID THE COMPANY'S PRESENTATIONS HAVE BEEN POSITIVELY RECEIVED IN MANY OF THOSE VENUES NOTABLY WITHIN THE AIR MOBILITY COMMAND THAT OVERSEES SUCH ACQUISITIONS SENIOR OFFICIALS OF THE COMMAND COULDN'T BE REACHED IN RECENT DAYS FOR COMMENT BUT REP NORM DICKS A WASHINGTON STATE DEMOCRAT WITH DEFENSEAPPROPRIATIONS DUTIES SAID IN AN INTERVIEW EARLIER THIS WEEK THAT THE CHIEF OF THE COMMAND GEN RONALD FOGELMAN HAS GREETED THE BOEING PROPOSAL FAVORABLY THE FIRST VICTIM OF A SUCCESSFUL CAMPAIGN BY BOEING WOULD BE LOCKHEED WHICH HAS PROPOSED A MULTIBILLIONDOLLAR SERVICE LIFE EXTENSION PROGRAM TO EXTEND THE USE OF C141 JETS AND HAS MADE PRESENTATIONS IN CONGRESS PITCHING A RESTART OF ITS C5 TRANSPORT PRODUCTION LINE MR BOYCE SAID THAT IN ITS PRESENTATIONS BOEING HAS SUGGESTED USE OF ITS JETS OVER A 30YEAR PERIOD WILL COST THE AIR FORCE ABOUT HALF OF WHAT THE TOTAL COST WOULD BE FOR CONTINUING TO USE C141 AIRCRAFT WITH AN EXTENDED SERVICE LIFE A SALE BY BOEING NOT ONLY WOULD BOOST ITS LAGGING BUSINESS FOR COMMERCIAL JETLINERS BUT WOULD BUMP LOCKHEED'S PROPOSALS FROM THE FEDERAL BUDGET AND IF BOEING'S PROPOSAL GOES THROUGH IT WOULD HIT ST LOUISBASED MCDONNELL DOUGLAS HARD BY SLASHING FUNDING AVAILABLE FOR OTHER TRANSPORT PROGRAMS SUCH AS THE C17 FURTHER THE OPTION OF RELATIVELY INEXPENSIVE OFFTHESHELF AIRCRAFT FROM BOEING COULD BECOME AMMUNITION FOR OPPONENTS OF THE C17 IN CONGRESS THE AIR FORCE PLANS TO BUY 120 C17 JETS AT A COST OF ABOUT 40 BILLION BUT THE PROGRAM HAS SUFFERED FROM DELAYS DESIGN PROBLEMS AND OVERRUNS THAT HAVE COST MCDONNELL DOUGLAS MORE THAN 1 BILLION AND MUCH POLITICAL CAPITAL WHILE THE COMPANY AND THE AIR FORCE NOW SAY THE C17'S PROBLEMS ARE BEHIND IT THE AIR FORCE'S UNDERSECRETARY FOR ACQUISITION JOHN DEUTCH RECENTLY WARNED THE COMPANY THAT HE SEES THE PROGRAM AS STILL PROBLEMPRONE HE HAS ORDERED A MAJOR REVIEW OF AIRLIFT PLANS TO BE COMPLETED BY AUGUST WHICH IS WHEN BOEING EXPECTS TO LEARN THE FATE OF ITS PROPOSAL OFFICIALS AT BOEING AND LOCKHEED SAY THEY BACK THE C17 AS NECESSARY FOR SOME IMPORTANT AIRLIFT MISSIONS INCLUDING THOSE THAT REQUIRE HAULING SUCH WIDE HEAVY EQUIPMENT AS TANKS INTO AREAS WITH SUBSTANDARD RUNWAYS BOTH COMPANIES HAVE SAID THEY HAVEN'T ANY INTEREST IN TAKING OVER MANAGEMENT OF THE MCDONNELL DOUGLAS PROGRAM AS SOME STAFFERS IN CONGRESS HAVE SUGGESTED AS A SOLUTION TO CURRENT C17 PROBLEMS HOWEVER SOME EXECUTIVES OF THE COMPANIES SAY PRIVATELY THAT THE SUCCESS OF BOEING'S PROPOSALS COULD LEAD TO CUTBACKS IN C17 ORDERS MR DICKS SAID HE BELIEVES THAT THE BOEING JETS AND THE C17 SHOULD BE VIEWED AS COMPLEMENTARY ELEMENTS OF THE AIR FORCE FLEET PLAN BOEING'S ANNOUNCEMENT OF THE CHINA SALE PLANNED FOR TODAY FOLLOWS AN 800 MILLION ORDER LAST MONTH FOR SMALLER NARROWBODY AIRCRAFT ACCORDING TO INDUSTRY OFFICIALS FAMILIAR WITH BOTH TRANSACTIONS THEY SAID BOEING STILL ANTICIPATES ANOTHER 800 MILLION IN ORDERS FOR WIDEBODY AIRCRAFT FROM CHINA THIS YEAR COMPANY MANAGERS STILL ARE CONCERNED THAT FORTHCOMING TRADE ACTIONS BY THE CLINTON ADMINISTRATION COULD DAMAGE JETLINER SALES IN CHINA ONE OF A FEW REDHOT GROWTH MARKETS IN A GENERALLY GLOOMY GLOBAL AIRTRAVEL INDUSTRY THE ADMINISTRATION IS NEAR A DECISION ON WHETHER TO RENEW CHINA'S TRADE STATUS AS A MOSTFAVOREDNATION WHICH QUALIFIES IT FOR THE SAME TARIFFS AND PRIVILEGES GRANTED MOST US TRADING PARTNERS THE PRESIDENT IS UNDER PRESSURE TO DEMAND HUMANRIGHTS CONCESSIONS FROM THE CHINESE BEFORE GRANTING THE MFN STATUS 9305140146 930514 BROADCAST NETWORKS US OFFICIALS TO MEET ON SYNDICATION RULES NEW YORK LAWYERS FOR THE BROADCAST NETWORKS HAVE BEEN CALLED TO A MEETING AT THE JUSTICE DEPARTMENT ON TUESDAY TO DISCUSS THE FINANCIAL INTEREST AND SYNDICATION RULES INDICATING THAT THE DEPARTMENT MAY BE PREPARING TO REINVOLVE ITSELF IN THE LONGRUNNING BATTLE BETWEEN HOLLYWOOD AND THE NETWORKS THE MEETING IS EXPECTED TO BE FOLLOWED BY ANOTHER WITH THE NETWORKS' TOP EXECUTIVES ONE NETWORK OFFICIAL SAID IN APRIL THE FEDERAL COMMUNICATIONS COMMISSION VOTED TO RELAX 20YEAROLD REGULATIONS THAT RESTRICTED HOW MUCH OF THEIR OWN SCHEDULES THE NETWORKS COULD PRODUCE AND PROHIBITED THEM FROM THE SYNDICATION BUSINESS OF SELLING RERUN RIGHTS FOR THEIR SHOWS TO STATIONS UNDER THE NEW FCC REGULATIONS THE NETWORKS WILL BE ABLE TO ENTER THE SYNDICATION BUSINESS IN TWO YEARS THE ONLY BARRIER TO ENTERING THE SYNDICATION BUSINESS IS CONSENT DECREES THAT THE NETWORKS SIGNED WITH THE JUSTICE DEPARTMENT MORE THAN A DECADE AGO WHICH ARE CURRENTLY UNDER REVIEW BY A FEDERAL DISTRICT JUDGE BOTH THE NETWORKS AND THE BUSH ADMINISTRATION'S JUSTICE DEPARTMENT AGREED BEFORE THE COURT THAT THE CONSENT DECREES SHOULD BE LIFTED BUT THE COURT HAS YET TO RULE ON THE ISSUE SOON AFTER TAKING THE HELM AT THE JUSTICE DEPARTMENT ATTORNEY GENERAL JANET RENO MET WITH REPRESENTATIVES OF HOLLYWOOD MOVIE STUDIOS NETWORK OFFICIALS SAY THAT PRELIMINARY INDICATIONS INCLUDING NEXT WEEK'S MEETING ARE THAT THE CLINTON ADMINISTRATION WHICH HAS CLOSE TIES TO THE HOLLYWOOD PRODUCTION COMMUNITY MAY REVIEW THE ISSUE BUT A SPOKESWOMAN FOR THE HOLLYWOOD COALITION LOBBYING TO KEEP THE RULES IN PLACE SAID THE STUDIOS HAD NO INDICATION THAT THE CLINTON ADMINISTRATION WAS PLANNING TO GET INVOLVED WE DON'T KNOW ANYTHING ABOUT IT BUT WE HOPE IT'S TRUE THE SPOKESWOMAN SAID 9305140145 930514 FANNIE MAE TO CALL DEBENTURES WASHINGTON FEDERAL NATIONAL MORTGAGE ASSOCIATION SAID THAT ON JUNE 14 IT WILL REDEEM ALL 700 MILLION OF ITS 885 DEBENTURES DUE JUNE 12 1995 THE DEBENTURES WILL BE REDEEMED AT 100 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST FANNIE MAE IS A CONGRESSIONALLY CHARTERED COMPANY THAT BUYS AND SELLS HOME MORTGAGES 9305140144 930514 WHO'S NEWS NATURE'S BOUNTY INC NATURE'S BOUNTY INC BOHEMIA NY SCOTT RUDOLPH PRESIDENT IS TAKING ON THE ADDITIONAL POSITION OF CHIEF EXECUTIVE OFFICER FROM HIS FATHER ARTHUR RUDOLPH 66 YEARS OLD WHO REMAINS CHAIRMAN THE YOUNGER MR RUDOLPH 35 YEARS OLD ALSO HAD BEEN CHIEF OPERATING OFFICER THAT POSITION WILL BE ELIMINATED SAID THE MAKER AND MARKETER OF VITAMINS AND NUTRITIONAL SUPPLEMENTS SCOTT RUDOLPH JOINED THE COMPANY IN 1986 AS VICE PRESIDENT OF OPERATIONS AT THAT TIME NATURE'S BOUNTY ACQUIRED US NUTRITION CORP A COMPANY HE FOUNDED AND OPERATED FOR 10 YEARS 9305140143 930514 FINANCING BUSINESS PAPA JOHN'S INTERNATIONAL INC PAPA JOHN'S INTERNATIONAL INC LOUISVILLE KY SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 13 MILLION COMMON SHARES AT 10 TO 12 EACH IN AN INITIAL PUBLIC OFFERING THE COMPANY SAID IT WILL USE PROCEEDS FROM THE OFFERING TO PAY OFF 12 MILLION IN DEBT PAY UNDISTRIBUTED SCORPORATION EARNINGS AND FOR EXPANSION PAPA JOHN'S OPERATES AND FRANCHISES PIZZA DELIVERY AND CARRYOUT RESTAURANTS IN 18 STATES THERE WERE 258 PAPA JOHN'S AT APRIL 23 MONTGOMERY SECURITIES IS THE LEAD UNDERWRITER 9305140142 930514 ZIFFDAVIS PUBLISHING CO CANCELS MOVE TO COLORADO NEW YORK COMPUTER MAGAZINE PUBLISHER ZIFFDAVIS PUBLISHING CO SAID IT CANCELED A PROPOSED MOVE TO DENVER AFTER COLORADO LAWMAKERS REJECTED ECONOMIC INCENTIVE LEGISLATION LAST WEEK THAT WOULD HAVE HELPED DEFRAY THE COST OF THE COMPANY'S MOVE FROM NEW YORK CITY THE DECISION ENDED FIVE MONTHS OF NEGOTIATIONS BETWEEN ZIFF THE LEGISLATURE AND THE GOVERNOR'S OFFICE ZIFF TOLD EMPLOYEES IN LATE 1992 THAT IT WAS CONSIDERING THE MOVE BECAUSE OF DENVER'S PROXIMITY TO THE WEST COAST COMPUTER INDUSTRY AND ITS LOWER COST OF LIVING THE LEGISLATION REJECTED BY A HOUSE COMMITTEE WOULD HAVE EARMARKED 9 MILLION FOR ECONOMIC DEVELOPMENT INCENTIVES AND WAS THE LATEST EFFORT BY LEGISLATORS TO HELP ZIFF PAY FOR THE ESTIMATED 150 MILLION MOVE THE MEASURE DIDN'T NAME ZIFFDAVIS BUT WAS DUBBED THE ZIFF BILL BY CRITICS WHO MAINTAINED IT WAS AN UNNECESSARY GIVEAWAY TO A COMPANY THAT COULD AFFORD TO PAY FOR ITS OWN MOVE IN A MEMO TO EMPLOYEES ZIFF SAID COLORADO'S ADOPTION OF TAXLIMIT AND ANTIGAY RIGHTS AMENDMENTS CONTRIBUTED TO THE DECISION VOTERS APPROVED THE MEASURES IN NOVEMBER BEFORE THE LEGISLATURE CONSIDERED ZIFF'S REQUEST FOR ECONOMIC INCENTIVES THE COMPANY SAID IT HAD HOPED ECONOMIC INCENTIVE LEGISLATION WOULD PAVE THE WAY FOR OTHER INFORMATIONINDUSTRY COMPANIES TO MOVE TO COLORADO WE ARE NOT A COMPANY THAT CAN AFFORD TO RISK POTENTIALLY PERMANENT ISOLATION FROM THE REST OF THE KNOWLEDGE INDUSTRY CHAIRMAN WILLIAM ZIFF SAID IN THE MEMO 9305140141 930514 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN GRANVILLE H BOWIE 48 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND MANAGER OF HUMAN RESOURCES FOR GE CAPITAL CORP GE CAPITAL IS THE FINANCIALSERVICES SUBSIDIARY OF THIS CONGLOMERATE WITH INDUSTRIAL PRODUCTS AND BROADCASTING BUSINESSES MR BOWIE HAD BEEN THE SENIOR VICE PRESIDENT OF HUMAN RESOURCES OF KIDDER PEABODY GROUP INC GE CAPITAL'S BROKERAGE SUBSIDIARY HE SUCCEEDS CHARLES E OKOSKY 46 WHO BECOMES VICE PRESIDENT FOR GLOBAL LEADERSHIP DEVELOPMENT FOR PARENT GENERAL ELECTRIC 9305140140 930514 FINANCING BUSINESS ALAMCO INC ALAMCO INC SAID IT EXPECTS TO MAKE A PUBLIC OFFERING OF TWO MILLION COMMON SHARES THIS SUMMER THE CLARKSBURG W VA PRODUCER OF OIL AND NATURAL GAS IN THE APPALACHIAN BASIN SAID IT WILL USE PROCEEDS FROM THE OFFERING TO REPAY 86 MILLION IN BANK DEBT AND TO FINANCE ITS CAPITAL PROGRAM ALAMCO ALSO SAID PNC BANK WHICH HOLDS ALL OF ALAMCO'S 1030000 CLASS A COMMON SHARES OUTSTANDING HAS INDICATED IT WILL SELL AN UNDETERMINED NUMBER OF SHARES IN THE OFFERING PNC BANK IS A UNIT OF PITTSBURGHBASED PNC BANK CORP ALAMCO HAS 15 MILLION SHARES OF COMMON STOCK OUTSTANDING 9305140139 930514 READING & BATES ACQUISITIONS HOUSTON READING & BATES CORP SAID IT ACQUIRED AN ADDITIONAL 55 MILLION SHARES IN ARCADE DRILLING AS BASED IN OSLO INCREASING ITS STAKE IN THAT COMPANY TO 67 READING & BATES AN OFFSHORE PETROLEUM DRILLING COMPANY ALSO SAID IT RECENTLY ACQUIRED AN ADDITIONAL 20 MILLION SHARES OF ARCADE SHIPPING AS ALSO BASED IN OSLO INCREASING ITS STAKE TO 64 TERMS OF THE TRANSACTIONS WEREN'T DISCLOSED ARCADE DRILLING IS AN OFFSHORE DRILLING CONTRACTOR ARCADE SHIPPING OWNS TRANSPORT VESSELS 9305140138 930514 WHO'S NEWS PARAMOUNT COMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC NEW YORK MICHELE MARTIN WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT AND ASSOCIATE PUBLISHER FOR THE SIMON & SCHUSTER TRADE DIVISION OF PARAMOUNT PUBLISHING A UNIT OF THIS PUBLISHING AND ENTERTAINMENT CONCERN THE MOVE IS EFFECTIVE JUNE 2 MS MARTIN 39 YEARS OLD CURRENTLY IS VICE PRESIDENT AND AN ASSOCIATE PUBLISHER AT BERTELSMANN AG'S DOUBLEDAY 9305140137 930514 GENPHARM DEVELOPS NEW MOUSE MOUNTAIN VIEW CALIF GENPHARM INTERNATIONAL INC SAID IT AND STRATAGENE CORP HAVE DEVELOPED A NEW TYPE OF MOUSE FOR MEDICAL RESEARCH THE BIG BLUE TRANSGENIC MOUSE WILL ALLOW RESEARCHERS FOR THE FIRST TIME TO STUDY THE RELATIONSHIP BETWEEN THE FREQUENCY OF DNA MUTATIONS AND THE FORMATION OF TUMORS IN THE SAME ANIMAL SAID GENPHARM WHICH SPECIALIZES IN TRANSGENIC ANIMAL RESEARCH STRATAGENE IS A BIOTECHNOLOGY COMPANY IN LA JOLLA CALIF 9305140136 930514 INTERNATIONAL ITALY'S ENI ADOPTS ETHICS CODE MILAN ITALIAN STATE ENERGY HOLDING CONCERN ENTE NAZIONALE IDROCARBURI SAID ITS BOARD APPROVED A CODE OF CONDUCT FOR THE GROUP ENI DIDN'T GIVE DETAILS OF THE PLAN THE MOVE COMES TWO DAYS AFTER ITALIAN AUTO MAKER FIAT SPA AGREED TO A CODE OF ETHICS FOR EMPLOYEES AT BOTH COMPANIES KEY EXECUTIVES HAVE BEEN INVESTIGATED IN CONNECTION WITH ITALY'S BROAD CORRUPTION SCANDAL 9305140135 930514 EC PACT IS CLAIMED BUT THEN DISPUTED FOR KLOECKNERWERKE A WALL STREET JOURNAL NEWS ROUNDUP BRUSSELS GERMAN ECONOMICS MINISTER GUENTHER REXRODT SAID AN UNDERSTANDING WAS REACHED WITH EUROPEAN COMMUNITY OFFICIALS ON A DEBT RESTRUCTURING PLAN FOR INSOLVENT GERMAN STEEL AND ENGINEERING COMPANY KLOECKNERWERKE AG BUT THE COMMISSION INSISTED NEGOTIATIONS WERE CONTINUING MR REXRODT WHO MET WITH EC INDUSTRY COMMISSIONER MARTIN BANGEMANN SAID HE BELIEVED THE ISSUE WAS ALL WRAPPED UP AND THAT HE WAS VERY SATISFIED WITH THE COMMISSION'S DECISION BUT A COMMISSION OFFICIAL SAID SUCH AN ANNOUNCEMENT MAY BE PREMATURE HE MR REXRODT MAY BE TALKING IN BROAD POLITICAL TERMS BUT WE ARE STILL NEGOTIATING WITH KLOECKNER THE OFFICIAL SAID A FORMAL EC ANNOUNCEMENT WAS EXPECTED SHORTLY THE EC COMMISSION SAID LAST WEEK THAT IT FAVORS THE RESTRUCTURING PLAN FOR KLOECKNER WHICH WILL ALLOW THE COMPANY TO WRITE OFF AROUND 14 BILLION MARKS 8683 MILLION IN OUTSTANDING DEBT BUT IT DEMANDED THE COMPANY PRESENT A CONVINCING AND VIABLE PLAN FOR STEEL CAPACITY CUTS BEFORE FINALLY APPROVING THE PROPOSAL THE EC HOLDS 175 MILLION MARKS IN OUTSTANDING LOANS TO KLOECKNER AND THE EC COMMISSION'S AGREEMENT TO FORGIVE PART OF THAT LOAN IN EXCHANGE FOR CAPACITY CUTS IS SEEN AS ESSENTIAL TO SECURING THE REQUIRED 80 SUPPORT FROM CREDITORS FOR THE RESTRUCTURING PLAN'S APPROVAL 9305140134 930514 BUSINESS BRIEFS JOY TECHNOLOGIES INC'S JOY ENVIRONMENTAL TECHNOLOGIES INC UNIT RECEIVED A 28 MILLION CONTRACT FOR A COAL ASH HANDLING SYSTEM FROM TAIWAN POWER CO US STEEL MINING CO A UNIT OF USX CORP SIGNED A LETTER OF INTENT TO SELL ITS CUMBERLAND MINE IN GREENE COUNTY PA TO CYPRUS COAL CO A SUBSIDIARY OF CYPRUS MINERALS CO TERMS WEREN'T DISCLOSED SUN TELEVISION & APPLIANCES INC PLANS TO OPEN EIGHT STORES IN NEW YORK PENNSYLVANIA AND OHIO THIS YEAR VARIAN ASSOCIATES INC SIGNED AN AGREEMENT TO SELL ITS XRAY TUBES TO JAPAN'S TOSHIBA CORP IN A DEAL VALUED AT MORE THAN 50 MILLION ABAXIS INC WAS GRANTED TWO ADDITIONAL PATENTS FOR ITS PORTABLE BLOOD ANALYZER DEVICE BRINGING THE TOTAL NUMBER OF PATENTS THE COMPANY HAS TO FOUR VARITY CORP'S KELSEYHAYES AUTOMOTIVE PRODUCTS UNIT WON A 60 MILLION A YEAR CONTRACT TO SUPPLY ANTILOCK BRAKING SYSTEMS TO AN UNNAMED NORTH AMERICANJAPANESE JOINT VENTURE FOR THREE TO 10 YEARS CRAY RESEARCH INC RECEIVED AN ORDER FOR A 40 MILLION C90 SUPERCOMPUTER FROM THE US ARMY ENGINEER WATERWAYS EXPERIMENT STATION IN VICKSBURG MISS 9305140133 930514 GAP PROFIT FELL 8 IN FISCAL 1ST PERIOD JUST ABOVE FORECAST BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL GAP INC'S FISCAL FIRSTQUARTER EARNINGS FELL 8 BUT WERE SLIGHTLY BETTER THAN EXPECTED AS TIGHTER INVENTORIES PERMITTED FEWER MARKDOWNS SALES HOWEVER CONTINUED TO LIMP ALONG FOR THE QUARTER ENDED MAY 1 THE SAN FRANCISCO SPECIALTY RETAILER REPORTED NET INCOME OF 415 MILLION OR 29 CENTS A SHARE DOWN FROM THE YEAREARLIER PERIOD'S 453 MILLION OR 32 CENTS A SHARE SALES ROSE 9 TO 6436 MILLION FROM 5889 MILLION ALTHOUGH SALES AT STORES OPENED AT LEAST A YEAR A BETTER INDICATOR OF RETAIL PERFORMANCE SLIPPED 1 THE BETTERTHANEXPECTED EARNINGS ANALYSTS HAD BEEN LOOKING FOR 25 CENTS TO 28 CENTS A SHARE SIGNAL THAT GAP MAY HAVE LEARNED SOME LESSONS FROM THE YEAREARLIER QUARTER THAT'S WHEN THE RETAILER BEGAN TO SEE ONCELOYAL SHOPPERS TRIM SPENDING OR SWITCH TO LOWERPRICED RIVALS OFFERING COPYCAT VERSIONS OF GAP'S ALLCOTTON BASIC CLOTHING AS A RESULT GAP HAD TO MARK DOWN CLOTHES IT COULDN'T SELL IN THE LATEST QUARTER LOWER INVENTORY LEVELS ENABLED GAP TO BE LESS PROMOTIONAL SAID DONALD G FISHER CHAIRMAN AND CHIEF EXECUTIVE OFFICER CONSEQUENTLY MERCHANDISING MARGINS THE DIFFERENCE BETWEEN THE COST OF GOODS AND THE GOODS SOLD IMPROVED THE DROP IN SAMESTORE SALES WAS TROUBLING HOWEVER GAP'S FLAGSHIP STORES AND THE BANANA REPUBLIC CHAIN BOTH HAD MODESTLY NEGATIVE SALES A GAP OFFICIAL SAID HE CITED THE EFFECT OF LOWER PRICES IN PLACE SINCE LAST YEAR'S SECOND HALF POOR WEATHER THAT HAMPERED MANY RETAILERS IN THE FIRST QUARTER AND A VERY DIFFICULT CONSUMER ENVIRONMENT WALL STREET WAS CHEERED LAST WEEK WHEN GAP POSTED A HIGHERTHANEXPECTED 2 SAMESTORE SALES INCREASE FOR APRIL ITS FIRST FAVORABLE MONTHLY REPORT IN SEVERAL MONTHS THE STOCK HAS SINCE CLIMBED ABOUT 14 GAP'S STOCK THOUGH MAY BE GETTING A LITTLE AHEAD OF ITSELF SAID ROBERT ROTH AN ANALYST WITH MERRILL LYNCH HE SAID GAP MANAGEMENT CAUTIONED ANALYSTS YESTERDAY THAT IT WOULD BE DICEY TO EXTRAPOLATE FROM THE APRIL SALES RESULTS THAT SALES FOR THE REST OF 1993 WILL BE AS UPBEAT I QUITE HONESTLY DON'T SEE THE ECONOMIC ENVIRONMENT IMPROVING NEARTERM SAID WARREN HASHAGEN GAP'S SENIOR VICE PRESIDENT OF FINANCE GAPKIDS STORES OFFERED A BRIGHT SPOT POSTING DOUBLEDIGIT SAMESTORE SALES GAINS IN THE FIRST QUARTER CONSUMERS ARE CHARMED BY THE MINIATURE ADULTLIKE OUTFITS IN ALLCOTTON QUALITY AND KIDS MUST REPLACE THEIR CLOTHING MUCH MORE OFTEN GAP INDICATED TO ANALYSTS THAT GAPKIDS IS A HIGHGROWTH AREA AND IT PLANS TO INCREASE SPENDING ON INVENTORY AND STORE GROWTH FOR THE 273STORE CHAIN GAP'S FLAGSHIP STORES PRESENT MORE OF A CHALLENGE THE RETAILER IS ATTEMPTING TO CREATE MORE EXCITEMENT BY PLACING INCREASED EMPHASIS ON FRESH FASHIONABLE ITEMS SUCH AS BELTS DRESSES AND VESTS 9305140132 930514 GE UNIT GETS CONTRACT FAIRFIELD CONN GENERAL ELECTRIC CO SUBSIDIARY GE AIRCRAFT ENGINES WAS AWARDED A MAXIMUM 25 MILLION CONTRACT FROM JAKARTA'S GARUDA INDONESIA AIRLINES TO PROVIDE OVERHAUL AND REPAIR SERVICE FOR GEMADE ENGINES IN GARUDA'S FLEET 9305140131 930514 ZURICH INSURANCE SEES LEADING ROLE IN US REINSURANCE MARKET ZURICH ZURICH INSURANCE CO IS LAUNCHING A MAJOR OFFENSIVE IN THE UNDERSUPPLIED US REINSURANCE MARKET THE WORLD'S LARGEST ACCORDING TO CHIEF EXECUTIVE ROLF HUEPPI SPEAKING HERE IN SWITZERLAND YESTERDAY THE DAY AFTER THE LISTING ON THE NEW YORK STOCK EXCHANGE OF A NEW NORTH AMERICAN REINSURANCE SUBSIDIARY ZURICH REINSURANCE CENTER HOLDINGS INC MR HUEPPI SAID THE SWISS COMPANY PLANS A STRONGER CONCENTRATION ON REINSURANCE IN THE NORTH AMERICAN MARKET HE ADDED WE WANT TO BE LEADERS FROM THE BEGINNING INDEED ANALYSTS SAY ZRC WHICH IS STARTING OFF WITH 670 MILLION IN CAPITAL AND RESERVES WILL IMMEDIATELY TAKE A NO 1 POSITION IN THE US REINSURANCEBROKERAGE BUSINESS AND THE SIXTH POSITION IN THE US REINSURANCE MARKET AS A WHOLE THE ZURICH INSURANCE GROUP OWNS 57 OF THE COMPANY PUBLIC SHAREHOLDERS 34 AND FUND AMERICAN ENTERPRISES HOLDINGS INC 9 ZURICH INSURANCE IS ALREADY ACTIVE IN THE US REINSURANCE SECTOR BOTH DIRECTLY AND THROUGH ITS CENTRE RE SUBSIDIARY BUT SUGGESTED MR HUEPPI THE ESTABLISHMENT OF A PUBLICLY LISTED COMPANY IN THE US IS A MAJOR NEW MOVE ZURICH INSURANCE IS ONE OF THE WORLD'S LARGEST INSURERS WITH GROSS PREMIUM REVENUE OF 215 BILLION SWISS FRANCS 147 BILLION AND TOTAL GROUP INVESTMENTS OF 65 BILLION FRANCS MR HUEPPI ESTIMATES THAT THERE IS BETWEEN 3 BILLION AND 4 BILLION IN VOLUME WAITING FOR REINSURANCE COVERAGE IN THE US THE NEED FOR REINSURANCE IN THE US IS SO GREAT HE EXCLAIMED 9305140130 930514 WHO'S NEWS MACY'S CHAIRMANSHIP MOVE NEW YORK RH MACY & CO SAID MYRON E ULLMAN III IS NOW THE COMPANY'S SOLE CHAIRMAN AND CHIEF EXECUTIVE OFFICER EARLIER THAN THE PREVIOUSLY ANNOUNCED AUG 1 EFFECTIVE DATE MARK S HANDLER WHO HAD SHARED THE POSITIONS BECOMES EXECUTIVE DIRECTOR FOCUSING PRIMARILY ON MERCHANDISING STRATEGIES AND REMAINS ON MACY'S BOARD A SPOKESMAN SAID MACY WENT FORWARD WITH THE CHANGE NOW INSTEAD OF WAITING UNTIL AUG 1 BECAUSE IT HAD GAINED THE NECESSARY APPROVALS FROM CREDITORS AND FEDERAL BANKRUPTCY COURT THE RETAILER HAS BEEN OPERATING UNDER BANKRUPTCYCOURT PROTECTION 9305140129 930514 WHO'S NEWS SPAR AEROSPACE LTD SPAR AEROSPACE LTD MISSISSAUGA ONTARIO LARRY CLARKE RETIRED AS CHAIRMAN OF THIS SATELLITE COMMUNICATIONS FIRM THE COMPANY APPOINTED ITS VICE CHAIRMAN EARL H ORSER 64 YEARS OLD AS CHAIRMAN 9305140128 930514 BANISTER WINS CONTRACT TORONTO BANISTER INC SAID IT WAS AWARDED A CONTRACT TO BUILD 48 MILES OF NATURAL GAS PIPELINE IN SOUTHEAST BRITISH COLUMBIA THE VALUE OF THE CONTRACT WASN'T DISCLOSED THE CONTRACT WAS AWARDED BY ALBERTA NATURAL GAS CO WHICH WILL MANAGE THE PROJECT FOR THE PROJECT'S OWNER FOOTHILLS PIPE LINES LTD COMPLETION OF THE PIPELINE IS SCHEDULED FOR OCTOBER BANISTER SAID BANISTER IS A TORONTO CONSTRUCTION CONCERN 9305140127 930514 LEISURE & ARTS ON SPORTS MUSTARD AND MEMORIES BY FREDERICK C KLEIN CLEVELAND THIS IS THE LAST YEAR THE CLEVELAND INDIANS WILL BE PLAYING IN 62YEAROLD CLEVELAND STADIUM AND THAT FACT IS BEING MARKED IN A NUMBER OF WAYS INDIAN PLAYERS ARE WEARING A COMMEMORATIVE LOGO ON THEIR RIGHT UNIFORM SLEEVES AT VARIOUS TIMES DURING THE SEASON THE TEAM WILL GIVE AWAY CUPS PENNANTS SPORTS BAGS BALLS PINS AND PRINTS HONORING THE PLACE AND A LOCAL NEWSPAPER IS RUNNING A DAILY BOX RECALLING NOTABLE BASEBALL FEATS THAT TOOK PLACE THERE REALLY THOUGH FEW WILL MOURN WHEN THE TRIBE MOVES TO THE NEW BALLPARK NOW BEING BUILT ON THE OTHER SIDE OF THEIR CITY'S DOWNTOWN CAVERNOUS OLD CLEVELAND STADIUM WITH ITS SEATING CAPACITY OF 74000 AIN'T WRIGLEY FIELD FENWAY PARK OR EVEN TIGER STADIUM IN THE VIEW OF MOST IT'S TOO BIG TOO GLOOMY TOO CHILLY ON NIGHTS WHEN THE BREEZE IS OFF LAKE ERIE AND HOUSES TOO MANY BAD MEMORIES OF A TEAM THAT'S BEEN BASEBALL'S BAD LUCK BEARS A FEW YEARS BACK WHEN HE WAS AN INDIAN FIRST BASEMAN MIKE HARGROVE SAID THERE WAS NOTHING WRONG WITH CLEVELAND STADIUM THAT A CASE OF DYNAMITE COULDN'T CURE HE'S THE TEAM'S MANAGER NOW AND IF HE'S CHANGED HIS MIND ON THE SUBJECT HE'S KEPT IT TO HIMSELF THE WONDER IS THAT NO ONE TOOK UP HIS SUGGESTION BUT THERE'S AT LEAST ONE CLEVELANDER WHO SAYS HE'LL BE SORRY TO SEE THE INDIANS MOVE AND ONE CAN ONLY BELIEVE HIM HE'S 51YEAROLD DAVID DWOSKIN AND HE'S UNUSUAL AS BOTH A FAN AND A MAN THE PIVOTAL EVENT OF HIS LIFE WAS WHEN AS A 10YEAROLD HIS FATHER TOOK HIM TO HIS FIRST INDIANS' GAME AND HE ATE HIS FIRST BALLPARK HOT DOG IT WASN'T SO MUCH THE DOG THAT GOT HIM BUT THE MUSTARD IT WAS BROWN SPICY AND DELICIOUS AND LIKE NOTHING I'D HAD BEFORE RECALLS THE BALDISH BEARDED BOUNCY DWOSKIN EYES SPARKLING I STILL REMEMBER IT AIDING HIS MEMORY IS THAT BEGINNING SOME YEARS LATER HE MADE THAT MUSTARD HIS LIVELIHOOD IN 1969 HAVING CLOSED THE KOSHER BUTCHER SHOP HIS FATHER HAD RUN BEFORE HIM HE DECIDED TO FOLLOW HIS HEART HE SOUGHT OUT THE FAMILY THAT OWNED THE RECIPE FOR THE CONDIMENT HE LOVED AND VOLUNTEERED TO GO ON THE ROAD SELLING IT A FEW YEARS LATER HE BOUGHT THE RECIPE AND TOOK OVER ITS MANUFACTURE HIMSELF THE MUSTARD HAD NO NAME WHEN HE SIGNED ON IT WAS PRODUCED ONLY FOR INSTITUTIONAL CUSTOMERS SO HE GAVE IT ONE THE AUTHENTIC STADIUM MUSTARD IT'S A BULKY TAG BUT IT PROVIDED THE DESIRED TIE BETWEEN THE TASTE OF THE PRODUCT AND THE CRACK OF THE BAT THE ROAR OF THE CROWD I THOUGHT OTHER PEOPLE WOULD ASSOCIATE MUSTARD WITH BASEBALL LIKE I DO HE EXPLAINS THE STADIUM REFERRED TO OF COURSE IS CLEVELAND STADIUM THE EXCELLENCE OF STADIUM MUSTARD HAS BEEN ATTESTED IN PAST YEARS BY FORTUNE MAGAZINE IN AN ARTICLE ABOUT CLEVELAND AND BY THIS NEWSPAPER THAT IS BY ME IN AN ARTICLE ABOUT THE INDIANS THE ACTOR KARL MALDEN HAS TESTIFIED WITHOUT SOLICITATION THAT HE LOVES THE STUFF SO HAVE MANY OTHER LESS FAMOUS PEOPLE AND WHILE DWOSKIN DID NOT CONCOCT THE PRODUCT'S ORIGINAL RECIPE BASED ON A CANADIANGROWN MUSTARD SEED HE IS ITS STERN PROTECTOR I STARTED IN THE BUSINESS KNOWING NEXT TO NOTHING BUT TODAY I'M AN EXPERT HE AVERS I CAN SMELL ANY MUSTARD BLINDFOLDED AND TELL YOU THE BRAND I CAN LOOK AT ANY BATCH OF MINE AND KNOW IMMEDIATELY WHETHER OR NOT IT'S PERFECT IF IT'S NOT PERFECT IF IT'S NOT THE EXACT SAME MUSTARD I ATE AS A KID IT DOESN'T GET SHIPPED AS FOOD COMPANIES GO THE ONE THAT MAKES STADIUM MUSTARD IS SMALL AND LIKELY TO STAY THAT WAY DWOSKIN'S DAVIS FOOD CO WHICH HE OPERATES OUT OF HIS HOME IN THE SUBURB OF MAYFIELD HEIGHTS DOESN'T ADVERTISE BECAUSE IT WOULDN'T PAY TO TAKE ON THE BIG AD BUDGETS OF SUCH CONGLOMERATEOWNED COMPETING BRANDS AS FRENCH'S GULDEN'S AND GREY POUPON SOME OF HIS DISTRIBUTORS ARE NATIVE CLEVELANDERS WHO MOVED AWAY COULDN'T GET THE PRODUCT IN THEIR NEW HOME AREAS AND OFFERED TO SELL IT THERE NONETHELESS STADIUM MUSTARD IS AVAILABLE IN RETAIL STORES IN 30 STATES AND IN SOME 150 STADIUMS INCLUDING THE METRODOME IN MINNEAPOLIS AND THE SILVERDOME IN PONTIAC MICH WHEN I STARTED OUT I'D PUT 50 CASES IN THE TRUNK OF MY CAR AND NOT COME HOME UNTIL THEY WERE SOLD NOTES DWOSKIN NOW WE SHIP BY THE TRUCKLOAD IT'S A MATTER OF PRIDE TO THE ENTREPRENEUR THAT CLEVELAND STADIUM REMAINS HIS BIGGEST SINGLE OUTLET FOR EXAMPLE 400 GALLONS OF HIS MUSTARD WERE CONSUMED THERE WHEN 73290 PEOPLE HE AMONG THEM CAME OUT FOR THE INDIANS' SEASONOPENER ON APRIL 5 IT'S ALSO SATISFYING TO HIM THAT HIS PRODUCT IS LINKED TO INDIAN BASEBALL HOWEVER TANGENTIALLY I GREW UP LIKE SOME KIDS PLAYING WHATEVER SPORT WAS IN SEASON BUT BASEBALL ALWAYS WAS SPECIAL HE SAID AS WE WATCHED THE TRIBE PLAY THE CALIFORNIA ANGELS BEFORE A MORE TYPICAL CROWD OF 10057 ON A RECENT MONDAY NIGHT THAT WAS ABOUT 15 DEGREES CHILLIER IN THE BALLPARK THAN ELSEWHERE IN TOWN GREEN NEVER SEEMED GREENER THAN IN THE GRASS ON THE FIELD HERE WHITE NEVER WHITER THAN ON THE INDIANS' UNIFORMS SOME PEOPLE SAY IT'S TOUGH TO BE AN INDIANS' FAN BECAUSE THEY'VE LOST FOR SO LONG THE TEAM WON ITS LAST PENNANT IN 1954 AND HAS FINISHED HIGHER THAN FOURTH PLACE JUST FOUR TIMES SINCE BUT I'VE NEVER THOUGHT SO I TOOK WINNING AND LOSING SERIOUSLY WHEN I WAS A KID AND WE HAD GREAT PLAYERS LIKE EARLY WYNN AND AL ROSEN AND LARRY DOBY AND JIM HEGAN BUT I STILL LIKE THE GAME EVEN THOUGH I DON'T CARE SO MUCH ABOUT THAT ANYMORE WHAT'S IMPORTANT IS THAT IT'S MAJOR LEAGUE BASEBALL AND IT'S ALWAYS GOOD AND WE HAVE IT ALL SUMMER IN CLEVELAND WHENEVER WE WANT IT I THINK IT'S GREAT THAT THEY'RE BUILDING A NEW STADIUM BUT I'M GOING TO MISS THIS PLACE HE WENT ON YEAH CLEVELAND STADIUM'S BIG BUT YOU CAN SHOW UP 10 MINUTES BEFORE A GAME AND BUY A GOOD TICKET AND AFTER THIS SEASON YOU PROBABLY WON'T BE ABLE TO DO THAT AND THE MEMORIES THE NOSTALGIA WON'T BE THERE I MEAN MY DAD TOOK ME HERE AND THEN I TOOK MY KIDS WHEN I THINK OF BASEBALL I THINK OF THIS PLACE PROBABLY ALWAYS WILL 9305140126 930514 INTERNATIONAL WORLD ECONOMY US FIRMS ANTICIPATING HUGE MARKET WORRY CHINA MAY LOSE ITS MFN STATUS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MOST SIGNIFICANT ECONOMIC ASPECT OF THE CONTENTIOUS ISSUE OF USCHINA TRADE ISN'T SO MUCH WHAT EXISTS NOW AS WHAT MAY BE AMERICAN BUSINESSES ARE KEEN TO PROTECT THEIR EXPANDING CHINA TRADE AND INVESTMENTS BUT THEY ARE EVEN MORE EAGER TO BE THERE DOWN THE ROAD AS THAT HUGE MARKET GROWS THE PROBLEM IS THAT POSSIBLE US ACTIONS TO RAISE DUTIES ON CHINESE EXPORTS MAY SET AMERICAN BUSINESSES BACK HELPING EUROPEAN AND JAPANESE RIVALS WHOSE GOVERNMENTS WON'T DO ANYTHING SIMILAR TO AFFECT CHINA'S ACCESS TO THEIR MARKETS IT ALL DEPENDS HOW LONG SOMETHING CALLED MOSTFAVOREDNATION TARIFF TREATMENT USUALLY REFERRED TO SIMPLY AS MFN WILL APPLY TO CHINESE EXPORTS ENTERING THE US AND UNDER WHAT CONDITIONS BECAUSE THE US POLICY STRIVES TO BALANCE HUMAN RIGHTS AGAINST TRADING PROFITS MORALITY WITH MAMMON MANY PEOPLE TRY TO BE ON BOTH SIDES AT ONCE PRESIDENT CLINTON WHO MUST DECIDE BY JUNE 4 IS NO EXCEPTION BUT IS MFN REALLY SUCH A BIG FAVOR MFN TARIFFS DESPITE THE NAME ARE THE NORMAL RATES THE US APPLIES TO GOODS FROM ALMOST EVERYWHERE EVEN FROM PLACES WITH NASTY REGIMES SUCH AS BURMA AND LIBYA THE ONLY COUNTRIES LOCKED OUT OF MFN STATUS LONGTERM ARE A HANDFUL OF RENEGADE STATES SUCH AS NORTH KOREA WHICH THEN FACE STIFF DUTIES THOSE WHO WANT SIMILAR DISCRIMINATION IMPOSED AGAINST CHINA CLAIM THIS WOULD FORCE IT TO HALT BASIC HUMANRIGHTS VIOLATIONS CURB OBJECTIONABLE TRADE PRACTICES AND PARE ARMS SHIPMENTS BUT THOSE WHO DISAGREE SAY DENYING MFN WON'T HELP THE PERSECUTED AND WILL DAMAGE ECONOMIES ON BOTH SIDES US LAWS REQUIRE AN ANNUAL REVIEW WHICH HAS PUT THE WHITE HOUSE AND CONGRESS AT ODDS SINCE BEIJING'S BLOODY SUPPRESSION OF STUDENT PROTESTS IN 1989 MR CLINTON FAVORS A QUALIFIED EXTENSION IF CHINA DOESN'T TREAT ITS PEOPLE BETTER HONOR TRADE AGREEMENTS AND CURTAIL ARMS EXPORTS IT WOULD LOSE THE LOWER RATES NEXT YEAR FOR THE RECORD CHINESE OFFICIALS SAY ALL CONDITIONS ARE UNACCEPTABLE AND WILL BRING REPRISAL AGAINST US COMMERCE PRIVATELY THEY SAY MILD TERMS ARE TOLERABLE A LOT IS AT STAKE CHINA LAST YEAR SHIPPED 257 BILLION OF GOODS TO THE US AND AMERICANS SENT 75 BILLION WORTH THERE MOST CHINESE SALES WERE OF LOWPRICE LOWTECH PRODUCTS TOYS TENNIS SHOES HAIRDRYERS WHILE LEADING AMERICAN EXPORTS WERE JET AIRCRAFT FERTILIZER AND SOPHISTICATED INSTRUMENTS HIGH DUTIES WOULD PRICE CHINESEMADE GOODS OUT OF THE MARKET SAYS BARBARA WILLEY A SENIOR EXECUTIVE OF APPLAUSE INC A MAJOR IMPORTER A STUFFED PLUSH BUNNY MIGHT COST 5 MORE ONE STUDY SAYS DENYING MFN WOULD RAISE PRICES FOR CONSUMERS BY AS MUCH AS 16 BILLION A YEAR WHILE CHINESE TRADE RETALIATION COULD JEOPARDIZE 170000 US JOBS FOR EXAMPLE 11000 FLORIDIANS WHO MINE OR SHIP PHOSPHATE FERTILIZERS COULD LOSE WORK IF CHINA BUYS ELSEWHERE BUT MANY AMERICAN BUSINESSPEOPLE FOCUS MORE ON THE FUTURE CHINA HAS THE WORLD'S FASTESTGROWING ECONOMY 128 LAST YEAR AND AN ANNUALIZED RATE OF 141 SO FAR THIS YEAR SOON TO BE THE WORLD'S SECOND LARGEST MANY CHINESE SUDDENLY ARE RICH BY HISTORICAL STANDARDS PERHAPS 100 MILLION CHINESE HAVE DISPOSABLE INCOMES AND THE TOTAL IS EXPANDING FAST THE 2000 US COMPANIES WITH A TOTAL OF 6 BILLION INVESTED IN CHINA FEAR LOSING THIS BEACHHEAD CONSIDER AMERICAN TELEPHONE & TELEGRAPH CO ITS RECENT AGREEMENT TO HELP UPGRADE CHINA'S OVERBURDENED COMMUNICATIONS SYSTEM IS WORTH BILLIONS SAYS VICE CHAIRMAN RANDALL TOBIAS FOR CHINA PLANS TO EXPAND ITS PHONE SYSTEM MORE THAN TENFOLD BY THE YEAR 2000 HALF THE CHINESE MARKET IS BIGGER THAN THE WHOLE AMERICAN MARKET HE EXPLAINS CHINA OFFERS THE LARGEST OPPORTUNITY AT&T HAS EVER HAD OUTSIDE THE US AND IT SIMPLY COULDN'T BE DONE WITHOUT MFN TREATMENT BEING EXTENDED US AEROSPACE COMPANIES AGREE THEY HAVE 76 OF THE SUDDENLY HUGE CHINESE MARKET THIS YEAR BOEING CO WILL SHIP 47 JETLINERS THERE 14 OF ITS PRODUCTION WHILE MCDONNELL DOUGLAS CORP COMPLETES A 35PLANE ORDER FROM ITS SHANGHAI JOINT VENTURE PLANT WHICH ASSEMBLES KITS FROM CALIFORNIA BUT THE FUTURE EXCITES THEM MORE CHINA MAY BUY 800 AIRLINERS WITHIN 15 YEARS AND MCDONNELL DOUGLAS HOPES AT LEAST 175 COME VIA SHANGHAI BUT TOUGH MFN CONDITIONS COULD CAUSE BEIJING TO TURN TO EUROPE AND JAPAN WHERE SIMILAR RESTRICTIONS AND CONDITIONS AREN'T UNDER CONSIDERATION PERHAPS TO MAKE THE POINT CHINA RECENTLY ORDERED 12 AIRBUS INDUSTRIE JETS AT&T'S MR TOBIAS WORRIES THAT SIEMENS AG TELEFON AB LM ERICSSON AND ALCATEL NV COULD GAIN AT AT&T'S EXPENSE HE WONDERS HOW CREATING NEW JOBS FOR THEM WILL HELP THE US ECONOMY GROW 9305140125 930514 CAR MAKERS TO REDUCE OUTPUT OF VEHICLES BY 19 DURING WEEK DETROIT THE 10 MAJOR AUTO MAKERS THAT BUILD VEHICLES IN THE US PLAN TO ASSEMBLE 231267 CARS AND LIGHT TRUCKS THIS WEEK DOWN 19 FROM THE 235881 BUILT A YEAR AGO CHRYSLER CORP SAID ITS WARREN MICH ASSEMBLY PLANT WHICH BUILDS THE DODGE DAKOTA PICKUP WILL BE IDLE UNTIL JULY 19 FOR RETOOLING FOR A NEW MODEL GENERAL MOTORS CORP SAID IT WILL OPERATE ONE SHIFT EACH INSTEAD OF TWO SHIFTS AT ITS ARLINGTON TEXAS AND HAMTRAMCK MICH ASSEMBLY PLANTS BECAUSE OF SLOW SALES FORD MOTOR CO GM AND CHRYSLER HAVE ALL SCHEDULED OVERTIME AT ASSEMBLY PLANTS 9305140124 930514 BUSINESS BRIEF AMERICAN AIR DROPS UNFAIR COMPETITION CHARGE AGAINST IBERIA FORT WORTH TEXAS AMERICAN AIRLINES SAID IT WITHDREW AN UNFAIR COMPETITION COMPLAINT AGAINST IBERIA AIR LINES OF SPAIN SA THE COMPLAINT ONE OF TWO FILED WITH THE DEPARTMENT OF TRANSPORTATION LAST FEBRUARY HAD ALLEGED THAT IBERIA AND AIR FRANCE BOTH INTERNATIONAL CARRIERS ARE KEEPING THE AMR CORP UNIT FROM SELLING ITS SABRE COMPUTER RESERVATION SYSTEM IN SPAIN AND FRANCE AMERICAN SAID IBERIA HAS AGREED TO ALLOW THREE OF ITS AFFILIATE AIRLINES TO PARTICIPATE IN SABRE MEANING THAT THEY WILL ALLOW THEIR FLIGHTS TO BE BOOKED THROUGH THE US CARRIER'S COMPUTER SYSTEM AMERICAN HAD ALLEGED THAT THE EUROPEAN CARRIERS' REFUSAL TO LET LOCAL FRENCH AND SPANISH AIRLINE FLIGHTS BE LISTED IN ITS RESERVATION SYSTEM MADE SABRE ESSENTIALLY USELESS AMERICAN ALSO SAID IT HAS PRIVATELY AGREED TO A TENTATIVE SETTLEMENT WITH AIR FRANCE'S AIR INTER AFFILIATE A SPOKESWOMAN SAID AMERICAN IS LIKELY TO WITHDRAW ITS DOT COMPLAINT AGAINST AIR FRANCE BUT HASN'T DONE SO YET IN ITS COMPLAINTS WITH THE DOT AMERICAN HAD ASKED THE AGENCY TO ORDER EACH COMPUTER RESERVATION SYSTEM OPERATING IN THE US TO DENY AIR FRANCE IBERIA AND THEIR AFFILIATES THE ABILITY TO DISTRIBUTE THEIR PRODUCTS THROUGH USBASED COMPUTER SYSTEMS COMPUTER RESERVATION SYSTEMS ENABLE TRAVEL AGENTS TO PLOT OUT FLIGHT SCHEDULES SEEK LOW FARES AND MAKE HOTEL CAR RENTAL AND AIRPLANE RESERVATIONS THE HOST SYSTEMS CHARGE FEES FOR EACH BOOKING TRANSACTION 9305140123 930514 PRIMERICA SELLS VOYAGER UNIT NEW YORK PRIMERICA CORP SAID IT COMPLETED THE SALE OF ITS VOYAGER INSURANCE COS TO AMERICAN BANKERS INSURANCE GROUP INC FOR 108 MILLION 9305140122 930514 MARKETING & MEDIA MCDONALD'S BEGINS MCRADIO IN 3 CITIES IN EASTERN ILLINOIS PATRONS CAN TUNE IN TO FIND OUT WHAT SPECIALS RESTAURANTS ARE OFFERING ON THEIR MENU BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL SANDWICH ILL LISTEN UP YOU MAY HEAR MCRADIO MCDONALD'S HAS TURNED ITS RESTAURANT HERE AS WELL AS THOSE IN THE NEARBY EASTERN ILLINOIS TOWNS OF DEKALB AND SYCAMORE INTO MINIATURE RADIO STATIONS EACH STORE IS EQUIPPED WITH A TRANSMITTER THAT BROADCASTS THE LATEST ON WHAT'S COOKIN' AT MCDONALD'S IN OTHER WORDS COMMERCIALS PATRONS CAN TUNE THEM IN ON THEIR CAR RADIOS AS THEY PULL INTO THE PARKING LOTS SIGNS IN THE DRIVETHRU LANE GIVE THE FREQUENCY IN SANDWICH IT'S 887 FM BUT THE SIGNAL IS SO WEAK IT CAN ONLY BE HEARD WITHIN ABOUT 100 FEET OF THE RESTAURANT MCDONALD'S CALLS IT MCCHANNEL THE THREETOWN TEST A COMPANY SPOKESMAN PLAYS IT DOWN AS A TECHNOLOGY DABBLE EMPLOYS AN IDEA FIRST POPULARIZED BY REAL ESTATE AGENTS TO SELL HOMES TO ADVERTISE FEATURES OF A HOUSE NOT READILY VISIBLE WHILE DRIVING BY MANY AGENTS TAPERECORD A MESSAGE ON A MINIATURE RADIO TRANSMITTING DEVICE THEY PUT INSIDE THE HOUSE A YARD SIGN LISTS WHERE TO PICK UP THE SIGNAL ON A CAR'S AM OR FM BAND WHEN THEY FIRST APPEARED IN THE LATE 1980S THIS SOCALLED RADIO ON A STICK USED TAPE RECORDINGS BUT AFTER THOUSANDS OF PLAYS TAPES WOULD BREAK NOW TINY COMPUTER VOICE CHIPS HAVE REPLACED TAPES IN SOME MODELS MCDONALD'S IS USING A SYSTEM CALLED DRIVETHRU RADIO FROM JERON TECHNOLOGY INC POMPANO BEACH FLA SOME FRANCHISEES AT ARCHRIVAL BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC ARE INSTALLING MINITRANSMITTERS MANUFACTURED BY REALTY ELECTRONICS INC FOND DU LAC WIS THE MCCHANNEL MESSAGE IN SANDWICH RUNS TWO MINUTES THEN AUTOMATICALLY REPEATS IT BEGINS BY SAYING THE STATION IS INTENDED TO MAKE YOUR VISIT EVEN QUICKER AND EASIER BY TELLING YOU SOME SPECIALS BEFORE YOU ORDER A MAN'S VOICE THEN PITCHES THE EXTRA VALUE MEALS MENU THE BURGER OF THE MONTH AND A THERMALMUG OFFER MCTHEME MUSIC TINKLES IN THE BACKGROUND TO BUILD LISTENERSHIP AT HIS BURGER KING IN BROWNWOOD TEXAS FRANCHISEE STEVE SAMPLE INCLUDES A SECRET PHRASE BROILING IS BETTER IS ONE THAT WINS FREE FRIES FOR MOTORISTS REPEATING IT AT THE DRIVETHRU WINDOW BUT DON MCKITRICK WHO MANAGES SEVERAL BURGER KINGS AROUND ELYRIA OHIO SAYS HE ISN'T SURE HOW HE'LL USE THE TECHNOLOGY FIRST HE HAS TO FIND A DEAD CHANNEL ON THE AM BAND WE'RE ON LAKE ERIE AND WE'RE PICKING UP SIGNALS FROM EVERYWHERE HE SAYS THE TRANSMITTERS DON'T REQUIRE A LICENSE FROM THE FEDERAL COMMUNICATIONS COMMISSION BUT THE AGENCY MUST APPROVE THE MANUFACTURER'S DESIGN OF THE TRANSMITTING EQUIPMENT USERS ARE REQUIRED TO OPERATE ON A VACANT FREQUENCY RICHARD MATTHEW PRESIDENT OF REALTY ELECTRONICS SAYS OTHER USERS INCLUDE AUTO DEALERSHIPS THAT ARE CLOSED ON SUNDAYS TO STEER LOT BROWSERS TO SPECIALS AND CHURCHES THAT BROADCAST BRIEF INSPIRATIONAL MESSAGES FOR THOSE IN THE FAST LANE 9305140121 930514 WHO'S NEWS ARCO CHEMICAL CO ARCO CHEMICAL CO NEWTOWN SQUARE PA JOHN A SHAW FORMERLY VICE PRESIDENT PLANNING AND CONTROL FOR ARCO CHEMICAL EUROPEAN OPERATIONS WAS NAMED VICE PRESIDENT AND TREASURER OF THIS CHEMICAL CONCERN MR SHAW 45 YEARS OLD SUCCEEDS RONALD REMICK 46 WHO WAS NAMED VICE PRESIDENT PLANNING AND CONTROL OF THE PARENT 9305140120 930514 S&LRESCUE FUNDS OF 343 BILLION PASSED BY SENATE BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE APPROVED 343 BILLION TO WIND UP THE GOVERNMENT'S SAVINGSANDLOAN BAILOUT BUT COMPARED WITH A PENDING HOUSE MEASURE THE SENATE LEGISLATION WOULD PLACE CONSIDERABLY LESSRESTRICTIVE CONDITIONS ON THE FEDERAL DEPOSIT INSURANCE CORP'S FUTURE USE OF AS MUCH AS 16 BILLION OF THE TOTAL AMOUNT THE SENATE VOTED 6135 FOR THE THRIFT FINANCING BILL WITH 25 REPUBLICANS JOINING 36 DEMOCRATS IN SUPPORT OF THE LEGISLATION THE 343 BILLION WAS SCALED DOWN FROM THE 45 BILLION PREVIOUSLY APPROVED BY THE SENATE BANKING COMMITTEE REFLECTING THE CLINTON ADMINISTRATION'S ORIGINAL REQUEST THE ADMINISTRATION HAD SOUGHT CONGRESSIONAL FUNDING OF ENOUGH MONEY TO PROVIDE A CUSHION AGAINST HAVING TO SEEK STILL MORE MONEY FOR THE S&L CLEANUP LATER BUT IT ACCEPTED THE REDUCED SENATE AMOUNT WHICH TREASURY SECRETARY LLOYD BENTSEN SAID MAY BE ENOUGH IF REGIONAL ECONOMIC CONDITIONS REMAIN AT CURRENT LEVELS THE SENATE'S ACTION WOULD PROVIDE 183 BILLION FOR THE RESOLUTION TRUST CORP THE FEDERAL AGENCY RESPONSIBLE FOR CLEANING UP MOST OF THE THRIFTINDUSTRY COLLAPSE THE RTC WHOSE AUTHORITY TO TAKE OVER FAILED S&LS EXPIRES AFTER SEPT 30 HAD BEEN WITHOUT FUNDS FOR SUCH TAKEOVERS SINCE APRIL 1 OF LAST YEAR UNTIL THE RTC AND CONGRESS'S GENERAL ACCOUNTING OFFICE RECENTLY FOUND AN ADDITIONAL 5 BILLION IN RESERVES THE SCALEDDOWN FINANCING SPELLED OUT IN AN AMENDMENT OFFERED BY BANKING COMMITTEE CHAIRMAN DONALD RIEGLE D MICH ALSO WOULD PROVIDE 16 BILLION FOR THE FDIC'S SAVINGS ASSOCIATION INSURANCE FUND THE FDIC PICKS UP THE AUTHORITY TO TAKE OVER FAILED THRIFTS ON OCT 1 THE 343 BILLION IN TOTAL NEW FUNDING IF FULLY USED WOULD BRING THE COST OF THE GOVERNMENT'S MASSIVE S&L BAILOUT TO MORE THAN 180 BILLION SINCE IT BEGAN IN 1988 BUT THAT SIZABLE AMOUNT IS LESS THAN PREVIOUS ESTIMATES THAT THE RESCUE'S PRICE TAG COULD SOAR TO 220 BILLION REGIONAL ECONOMIC IMPROVEMENTS AND REDUCED INTEREST RATES HAVE BOLSTERED S&L FINANCES LESSENING THE PROSPECTS FOR MANY MORE FAILURES THE HOUSE BANKING COMMITTEE LAST WEEK APPROVED THE SAME 343 BILLION IN RTC AND FDIC FUNDS BUT WITH TOUGHER RESTRICTIONS ON THE FDIC'S ABILITY TO USE THE 16 BILLION THE SENATE BOTH AUTHORIZED AND APPROPRIATED 85 BILLION OF THE SAIF MONEY BUT THE REMAINING 75 BILLION REQUIRES A CONGRESSIONAL APPROPRIATION BEFORE THE FDIC CAN SPEND IT THE SENATE ALSO SPECIFIED THAT NONE OF THE 16 BILLION CAN BE RELEASED UNLESS BOTH THE TREASURY SECRETARY AND THE FDIC CERTIFY THAT THE INDUSTRY WOULD BE HURT IF S&LS WERE DENIED TAXPAYER FUNDING AND HAD TO PAY HIGHER DEPOSITINSURANCE PREMIUMS TO BUILD UP THE SAIF THE GAO WOULD HAVE TO WEIGH IN AS TO WHETHER SUCH INCREASES WOULD BE HARMFUL THESE HURDLES ARE GENERALLY LOWER THAN THOSE PUT UP BY THE HOUSE BANKING COMMITTEE BILL HOWEVER THE HOUSE MEASURE MERELY ENDORSED 16 BILLION IN SAIF FUNDING THAT HAD BEEN AUTHORIZED PREVIOUSLY BY CONGRESS BUT NEVER APPROPRIATED A SEPARATE APPROPRIATION WOULD STILL BE REQUIRED FURTHERMORE THE HOUSE MEASURE WOULD REQUIRE THAT THE FDIC CERTIFY THAT PREMIUM RISES WOULD CAUSE MORE S&L FAILURES AND THEREFORE MAKE THE INCREASES SELFDEFEATING THE SENATE ACTION YESTERDAY BROUGHT THE GAO INTO THE PICTURE ON AN AMENDMENT OFFERED BY SEN PAUL WELLSTONE D MINN BUT THE BILL WOULD REQUIRE ONLY THAT THE TREASURY SECRETARY AND THE FDIC CERTIFY EITHER THAT PREMIUM INCREASES WOULD CAUSE THRIFT FAILURES OR THREATEN THE S&LS' ABILITY TO MAINTAIN OR RAISE CAPITAL AND TO CONTINUE COMPETING WITH BANKS 9305140119 930514 THE AMERICAS EL SALVADOR STILL DIGGING ITS WAY OUT OF THE AID TRAP BY DAVID ASMAN USULATAN EL SALVADOR ULISES FERNANDO GONZALEZ PRESIDENT OF A CONSORTIUM OF PRIVATE AND COOPERATIVE COTTON FARMS GRABS A HANDFUL OF COTTON SEED FROM A PILE 40 FEET HIGH STRETCHING THE FULL DISTANCE OF A BLOCKLONG WAREHOUSE HE BITES INTO ONE OF THE SEEDS AND IT SPURTS OUT THE RICH OIL THAT HE AND OTHER FARMERS FORMERLY SOLD AS COOKING OIL WE USED TO CALL IT GOLDEN OIL' BECAUSE IT SOLD LIKE GOLD MR GONZALEZ SAYS RUBBING THE OIL INTO HIS WEATHERBEATEN HANDS NOW WE'LL BE LUCKY IF WE CAN SELL IT OFF AS CATTLE FEED THE CAUSE OF THIS WASTE SAYS MR GONZALEZ IS US AID TO EL SALVADOR OR MORE PRECISELY THE EFFECT OF CHEAP US COOKING OIL SENT TO EL SALVADOR AS PART OF A PL480 AID PACKAGE MR GONZALEZ AND HIS FELLOW COTTON FARMERS SAY THAT INFERIORGRADE COOKING OIL FROM THE US UNDERCUT THE SALE OF FINE DOMESTIC OIL WHEN IT WAS PLACED ON THE SALVADORAN MARKET MOREOVER MR GONZALEZ BELIEVES THAT THE ENTIRE US AID PACKAGE HAS BEEN AN ELABORATE CONSPIRACY ON THE PART OF US FARMERS TO DRIVE SALVADORAN FARMERS OUT OF BUSINESS MR GONZALEZ MAY BE FORGIVEN HIS PARANOID VISION OF US RELIEF EFFORTS FOR THERE SEEMS NO OTHER LOGICAL EXPLANATION AS TO WHY THE US WOULD SUBSIDIZE ONE DESTRUCTIVE ECONOMIC POLICY AFTER ANOTHER IN EL SALVADOR DURING THE 1980S OVER 9 BILLION OF US AID HAS BEEN SENT TO CENTRAL AMERICA OVER THE LAST 13 YEARS 4 BILLION OF WHICH WENT TO EL SALVADOR ALONE THIS AID DID HELP PREVENT THE SPREAD OF TOTALITARIANISM AND THAT'S A SUBSTANTIAL ACHIEVEMENT MUCH LESS SUCCESSFUL HOWEVER HAS BEEN THE US RECORD OF SUPPORTING THE ECONOMIC AND LEGISLATIVE FOUNDATIONS OF A COMPETITIVE MARKET ECONOMY IN THE REGION MR GONZALEZ THREE TIMES A VICTIM OF GUERRILLA KIDNAPPERS APPRECIATED US SUPPORT DURING THE WAR BUT HE HAS ALSO SEEN EL SALVADOR'S AGRICULTURAL PRODUCTION PLUMMET SINCE THE US AID SPIGOT OPENED UP IN 1980 PARTICULARLY IN HIS AREA OF SPECIALTY COTTON IN 1978 ANNUAL COTTON PRODUCTION IN EL SALVADOR TOTALED ABOUT 189000 TONS BY 1988 COTTON PRODUCTION HAD DROPPED TO ABOUT 24000 TONS AND OUTPUT CONTINUES TO FALL WHILE HE BLAMES THE WAR FOR ABOUT HALF THAT DROP MR GONZALEZ CONTENDS THAT USSUPPORTED ECONOMIC POLICIES DID MOST OF THE DAMAGE TO ILLUSTRATE THE POINT MR GONZALEZ TAKES US TO LA CARRERA A 13000ACRE FARM LOCATED IN THE RICH EASTERN INTERIOR WHEN LA CARRERA WAS IN PRIVATE HANDS IT WAS AN EXAMPLE OF EFFICIENCY ITS PRIMARY CROP WAS COTTON BUT IT EXPERIMENTED SUCCESSFULLY WITH MANY OTHER CROPS AND LIVESTOCK IN 1979 SAYS MR GONZALEZ COTTON YIELD AT A GOOD FARM WAS 25 QUINTALS PER SQ MANZANA ABOUT 24 ACRES AT LA CARRERA IT WAS 50 QUINTALS BUT SINCE THE SOCALLED REFORMS THE YIELD HAS DROPPED TO 7 QUINTALS PER MANZANA THE AGRICULTURAL REFORMS TO WHICH MR GONZALEZ REFERS BEGAN IN MARCH 1980 SHORTLY AFTER A USSUPPORTED MILITARY COUP AT THAT TIME THE REFORMIST COUP LEADERS ORDERED THE EXPROPRIATION OF LA CARRERA AND DOZENS OF OTHER FARMS TO SET UP COOPERATIVES ORGANIZED BY THE FARMS' FORMER EMPLOYEES OWNERS WERE IMMEDIATELY SENT PACKING OCCASIONALLY BY FORCE OF ARMS AND JUST AS QUICKLY FORMER EMPLOYEES WITH LITTLE MANAGEMENT SKILLS WERE PLACED IN CHARGE OF THE NEW COOPERATIVES AT FIRST THE COOPERATIVE PRESIDENTS WERE POLITICAL APPOINTEES WHICH MEANT THAT CORRUPTION WAS RAMPANT ALL OF LA CARRERA'S 40 TRACTORS WERE QUICKLY SOLD BY COOPERATIVE PRESIDENTS WHO DISAPPEARED AFTER THE ASSETS VANISHED PRIVATE BANKS WERE NATIONALIZED IN ORDER TO PROVIDE CREDIT TO THE NEW COOPERATIVES BUT SINCE RECIPIENTS OF THOSE LOANS WERE EITHER CRONIES OF NEWLY POLITICIZED BANK OFFICERS OR MERELY INEFFICIENT MANAGERS MILLIONS OF DOLLARS WERE LOST IN BAD LOANS EXPORT FACILITIES WERE ALSO EXPROPRIATED INCAFE THE GOVERNMENTCREATED COFFEE EXPORTER WAS 100 MILLION IN DEBT BY THE TIME PRESIDENT ALFREDO CRISTIANI ELECTED IN 1989 BEGAN REOPENING THE MARKET TO PRIVATE EXPORTERS THE COST OF THIS SOCIALIST EXPERIMENT RAN INTO THE HUNDREDS OF MILLIONS OF DOLLARS AS COOPERATIVES AND GOVERNMENT ENTERPRISES WENT BUST AND IT WAS ALL SUBSIDIZED BY THE US TAXPAYER BUT THE SALVADORANS SUFFERED MOST OWNERS OF NATIONALIZED FARMS AND COMPANIES WERE PAID OFF IN BONDS THAT LOST MOST OF THEIR VALUE AS THE LOCAL CURRENCY WHICH HAD STOOD AT 25 TO THE DOLLAR FOR 50 YEARS PRIOR TO THE NATIONALIZATIONS BEGAN A VICIOUS CYCLE OF DEVALUATIONS EVEN THE GOAL OF ADDRESSING WHAT WAS SEEN AS AN UNFAIR CONCENTRATION OF ECONOMIC POWER IN EL SALVADOR WAS NOT MET ACCORDING TO THE RECORDS OF THE COTTON FARMERS' CONSORTIUM THERE WERE 3000 SMALL COTTON FARMERS AT THE TIME OF THE 1980 EXPROPRIATIONS CURRENTLY THERE ARE JUST 90 SMALL COTTON FARMERS REGISTERED BY THE CONSORTIUM PER CAPITA INCOME IN EL SALVADOR WHICH HAD BEEN STEADILY RISING DURING THE 1970S TO A LEVEL ON PAR WITH MINERALRICH COLOMBIA PLUNGED DURING THE 1980S TO 1950 LEVELS OF COURSE THE WAR HAD MUCH TO DO WITH THIS BUT US FUNDS HAD THE EFFECT OF SUBSIDIZING POLICIES THAT LED INEXORABLY TO LEVELS OF CORRUPTION AND INEFFICIENCY THAT WERE UNHEARD OF EVEN AMONG EL SALVADOR'S HISTORICALLY CROOKED MILITARY TODAY EL SALVADOR IS RECOVERING REMARKABLY FROM THE RAVAGES OF WAR AND US AID THANKS TO THE MARKETORIENTED POLICIES OF PRESIDENT CRISTIANI AND US OFFICIALS HAVE BEEN SUPPORTING PRESIDENT CRISTIANI'S PRIVATIZATION AND DEREGULATION POLICIES HOWEVER US AGENCY FOR INTERNATIONAL DEVELOPMENT OFFICIALS ALL OF WHOM SPEAK ONLY ON DEEP BACKGROUND STILL INSIST THAT SUPPORT FOR THE ANTIMARKET ECONOMIC POLICIES OF THE 1980S WAS JUSTIFIED BECAUSE THE POLITICAL SITUATION DEMANDED COMPROMISE WITH LEFTIST ELEMENTS OF THE SOCIETY THIS SAME STRATEGY IS CURRENTLY USED BY AID OFFICIALS IN NICARAGUA TO JUSTIFY HANDING HUNDREDS OF MILLIONS OF DOLLARS OVER TO A GOVERNMENT MADE UP OF A CURIOUS MIXTURE OF CRONY CAPITALISTS AND MARXIST ADMINISTRATORS THERE IN 1992 ALONE THE CENTRAL BANK WHOSE RESOURCES ARE REPLENISHED BY US FUNDS ABSORBED 100 MILLION WORTH OF BAD LOANS MADE BY SANDINISTA LOAN OFFICERS GOVERNMENT MINISTERS ARE REAPING THE BENEFITS OF DISTRIBUTING PL480 FOODSTUFFS THROUGH THEIR OWN MONOPOLY INTERESTS INCLUDING COOKING OIL AND THE GOVERNMENT HAS EVEN PROPOSED SOLVING THE CONTENTIOUS PROPERTY ISSUE BY ISSUING EL SALVADORLIKE BONDS TO FORMER OWNERS FROM THE PERSPECTIVE OF US BUREAUCRATS AN AID STRATEGY EVEN A BAD ONE IS BETTER THAN NO AID AT ALL IT'S DOUBTFUL HOWEVER THAT THIS VIEW IS SHARED BY THE LOCAL FARMERS AND WORKERS WHO MUST TOLERATE ECONOMIC HARDSHIP FOR THE SAKE OF THE MINORITY SPECIAL INTERESTS WHO BENEFIT FROM THIS KIND OF US AID MR ASMAN EDITS THE AMERICAS COLUMN 9305140118 930514 COMPUTERS COMPUTERS WITH NEW INTEL CHIP TO MAKE DEBUT WITHOUT FANFARE BY KYLE POPE AND STEPHEN KREIDER YODER STAFF REPORTERS OF THE WALL STREET JOURNAL TWO DOZEN COMPUTER MAKERS WILL MARK THE START OF A NEW INDUSTRY HORSE RACE MONDAY TROTTING OUT THE FIRST MACHINES EVER TO USE INTEL CORP'S NEWEST AND SWIFTEST MICROPROCESSOR THE PENTIUM THE RACE IS EXPECTED TO START OUT SLOW INTEL EXPECTS TO SHIP ONLY ABOUT 10000 PENTIUM CHIPS TO CUSTOMERS THROUGH JUNE SPARKING EARLY COMPLAINTS AMONG PERSONALCOMPUTER MAKERS THAT THEY WON'T HAVE ENOUGH SUPPLY TO MEET DEMAND WE WISH WE HAD MORE THAN WE'RE GOING TO GET SAYS RON OLFERS PENTIUM PRODUCT MANAGER AT COMPAQ COMPUTER CORP ONE OF INTEL'S BIGGEST PC CUSTOMERS IT'S SOMETHING THAT'S PROBABLY GOING TO BE CONSTRAINED THROUGHOUT MOST OF THE YEAR BECAUSE OF THE SUPPLY SHORTAGES PC MAKERS SAY THEY AREN'T PLANNING BIG ADVERTISING OR MARKETING BLITZES TO KICK OFF THEIR PENTIUM LINES LEST THEY OFFEND CUSTOMERS WHO CAN'T GET THEIR HANDS ON THE NEW MACHINES YOU JUST DON'T WANT TO DIVE HEADFIRST INTO A STREAM OF HYPE SAYS RICHARD ZWETCHKENBAUM A RESEARCH ANALYST AT INTERNATIONAL DATA CORP A RESEARCH AND CONSULTING CONCERN STILL THE MACHINES THAT WILL BE UNVEILED NEXT WEEK REPRESENT INTEL'S BEST HOPES OF OUTRUNNING A NEW BREED OF COMPETITION EXPECTED LATER THIS YEAR THAT COMPETITION WILL COME IN THE FORM OF LOWCOST MACHINES USING NEW CHIPS FROM RIVALS LIKE DIGITAL EQUIPMENT CORP AND MOTOROLA INC COMPANIES LIKE COMPAQ DELL COMPUTER CORP AND AST RESEARCH INC PLAN TO UNVEIL A RANGE OF PENTIUM MACHINES FROM HIGHPOWERED SERVER COMPUTERS DOWN TO BASIC DESKTOP MACHINES INTERNATIONAL BUSINESS MACHINES CORP SAYS IT HAS PRODUCTS FOR THE PENTIUM BUT WILL HOLD OFF UNVEILING THE LINE OFFICIALLY UNTIL THERE'S A BIG ENOUGH SUPPLY OF THE CHIP TO MEET DEMAND OF MOST INTEREST TO INTEL'S RIVALS WILL BE THE PRICES ON THE LOWESTCOST MACHINES INTEL'S CHIEF EXECUTIVE OFFICER ANDREW GROVE HAS SAID INTEL PLANS TO PUSH THE PENTIUM EARLY ON IN ITS LIFE AS A MAINSTREAM MICROPROCESSOR NOT AS AN EXPENSIVE HIGHEND CHIP A PEEK AT PC MAKERS' PLANNED LIST PRICES SUGGESTS THAT STRATEGY IS BEING FOLLOWED MANY MANUFACTURERS INCLUDING COMPAQ WILL ANNOUNCE DESKTOP PENTIUM SYSTEMS STARTING AT ABOUT 5000 AT LEAST ONE ADVANCED LOGIC RESEARCH INC WILL ANNOUNCE A BASIC PENTIUM PC LISTING FOR ABOUT 3000 BY COMPARISON THE FIRST MACHINES USING INTEL'S CURRENT FLAGSHIP CHIP THE 486 LISTED FOR CLOSE TO 10000 IN 1989 INTERNATIONAL DATA ESTIMATES THAT PENTIUM PC PRICES WILL AVERAGE 3500 BY 1996 FALLING TO 2000 BY 1997 COMPANIES ARE GOING TO BE MORE AGGRESSIVE THIS TIME IN PRICING AND MARKETING PENTIUM MACHINES SAYS DAVID KIRKEY VICE PRESIDENT OF SALES AND MARKETING AT ALR IT'S A NEW GAME FOR ONE THING PC MAKERS SEE THE NEW INTEL CHIP AS A SURE BET AMONG INCREASINGLY POWERHUNGRY PC USERS IN CONTRAST IN 1989 THE 486 CHIP WAS SEEN AS EXPENSIVE AND EXCESSIVELY POWERFUL FOR MOST USERS IN ADDITION COMPANIES LIKE COMPAQ DELL AND ALR SEE THE RELATIVELY LOWPRICED PENTIUM SYSTEMS AS THEIR WEAPON TO BREAK INTO NEW MARKETS SUCH AS THE ONE FOR POWERFUL WORKSTATIONS AND SERVER COMPUTERS THAT CAN BE CHAINED TOGETHER IN NETWORKS TO TAKE OVER COMPUTING TASKS FROM EXPENSIVE MAINFRAME AND MINICOMPUTERS COMPAQ FOR EXAMPLE PLANS TO SELL AN 18000 PENTIUM VERSION OF ITS HIGHEND SYSTEMPRO SERVERS A PRODUCT SQUARELY AIMED AT THE WORKSTATION AND MINICOMPUTER MARKET LOWERPOWERED COMPAQ PENTIUM SERVERS WILL FETCH ABOUT 6300 SIMILARLY DELL LATER THIS SUMMER WILL OFFER A 5500 SERVER ALONG WITH 2500 PENTIUM UPGRADE KITS THAT CUSTOMERS CAN POP INTO DELL MACHINES THEY ALREADY OWN ZENITH DATA SYSTEMS MEANTIME IS PRICING ITS PENTIUM SERVERS AT LESS THAN 8000 BUT THE TRUE TEST OF THE PENTIUM'S MUSCLE WILL COME LATER THIS YEAR WHEN THE FIRST MACHINES BEGIN TO TRICKLE INTO THE MARKET THAT USES COMPETING CHIPS MOTOROLA SAID LAST MONTH THAT IT WOULD PRICE ITS NEW POWERPC CHIP DESIGNED IN A JOINT VENTURE WITH IBM AND APPLE COMPUTER INC AT UNDER HALF THE EXPECTED PRICE OF THE PENTIUM EVEN THOUGH IT IS ROUGHLY EQUAL IN COMPUTING POWER THE FIRST POWERPC MACHINES WILL BE OUT AS EARLY AS LATE 1993 AT PRICES AS LOW AS 2500 MOTOROLA SAID NEW OPERATING SYSTEMS SUCH AS MICROSOFT CORP'S WINDOWS NT ONE ARGUMENT GOES WILL MAKE SUCH MACHINES COMPETITIVE WITH INTELBASED PCS BECAUSE THE SYSTEMS WILL ALLOW THE NEW CHIPS TO RUN THE SAME SOFTWARE THAT INTEL CHIPS DO INTEL FOR ITS PART ISN'T TOO WORRIED ABOUT THE THREAT FROM NEW CHIP ARCHITECTURES FOR ONE THING WINDOWS NT AND OTHER NEW OPERATING SYSTEMS AREN'T EXPECTED TO GAIN WIDE ACCEPTANCE SOON AND MAKERS OF NONINTEL PCS CAN'T TAP THE ECONOMIES OF SCALE ENJOYED BY INTEL THEORETICALLY INTEL CAN UNDERPRICE RIVAL CHIP MAKERS ALLOWING MANUFACTURERS WHO USE INTEL CHIPS IN TURN TO UNDERPRICE THEIR RIVALS I'M CONVINCED THAT THE ECONOMIES OF SCALE ASSOCIATED WITH THE INTEL PC WILL KEEP OUR MACHINES PRICE COMPETITIVE WITH ANY OTHER SYSTEM SAYS PAUL OTELLINI GENERAL MANAGER OF INTEL'S MICROPROCESSOR BUSINESS MEANWHILE INTEL MUST PLAY A BALANCING ACT IN ITS FACTORIES INCREASING PRODUCTION OF PENTIUM CHIPS FAST ENOUGH TO KEEP ITS CUSTOMERS HAPPY BUT NOT SO FAST AS TO EAT INTO THE PRODUCTION OF ITS STILL HIGHLY PROFITABLE 486 CHIPS THE 486 MARKET IS REALLY COOKING RIGHT NOW SAYS DEAN KLINE A DELL SPOKESMAN YOU DON'T WANT TO LOSE SIGHT OF THE FACT THAT YOU HAVE A HUGE MARKET GOING FOR 486S STILL INTERNATIONAL DATA ESTIMATES THAT ABOUT 80000 PENTIUM MACHINES WILL BE SHIPPED IN THE US BY YEAR'S END CLIMBING TO 690000 IN 1994 AND TWO MILLION BY 1995 THE RESEARCH FIRM SAYS THE NEW CHIP SHOULD SURPASS THE 486 BY THE END OF 1996 9305140117 930514 WELLCOME PLC PROVIDES A RUNDOWN OF ITS RESEARCH AND DEVELOPMENT WORK BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL BRITISH DRUG MAKER WELLCOME PLC THIS MONTH OFFERED A GLIMPSE OF ITS RESEARCH AND DEVELOPMENT PIPELINE WHICH BLENDS REPLACEMENTS FOR ANTIVIRAL DRUGS WITH MOLECULAR BIOLOGY DISCOVERIES THAT HINT OF DISTANT BUT POTENTIALLY VAST PROMISE IT WAS THE FIRST SUCH PRESENTATION IN SEVERAL YEARS FROM THE COMPANY THE EVENT UNDERSCORED HOW SHARPER COMPETITION ALONG WITH PRESSURE TO ACCELERATE DEVELOPMENT AND DELIVER FATTER PROFITS ON INNOVATIVE NEW DRUGS IS CHANGING THE WAY COMPANIES GO ABOUT DISCOVERING NEW MEDICINES WELLCOME IS BESTKNOWN FOR ITS ANTIVIRAL MEDICINE WHERE IT BOASTS AN 80 SHARE OF ONE OF THE PHARMACEUTICAL INDUSTRY'S FASTESTGROWING THERAPEUTIC SEGMENTS ZOVIRAX A FLAGSHIP ANTIHERPES MEDICINE ACCOUNTS FOR MORE THAN ONETHIRD OF THE COMPANY'S ANNUAL SALES HOWEVER THE ANTIVIRAL SECTOR'S HEADY GROWTH PLUS IMMINENT EXPIRATION OF ZOVIRAX PATENTS IN MOST MAJOR MARKETS HAVE WHETTED AMBITIONS OF RIVALS SUCH AS SMITHKLINE BEECHAM PLC SMITHKLINE EXPECTS TO FILE INITIAL REGULATORY APPLICATIONS FOR ITS ANTIHERPES DRUG FAMCICLOVIR BY THE END OF THIS YEAR TIM MELTON WELLCOME'S PRODUCT DEVELOPMENT DIRECTOR SAID THAT THE FIRST APPLICATIONS FOR WELLCOME'S CANDIDATE CALLED VALACICLOVIR WON'T COME UNTIL NEXT YEAR HOWEVER MANY ANALYSTS EXPECT VALACICLOVIR TO EMERGE FROM THE REGULATORY LABYRINTH AHEAD OF SMITHKLINE'S FAMCICLOVIR THAT'S BECAUSE THE WELLCOME PRODUCT ONCE IN THE BODY BREAKS DOWN TO FORM A MORE POTENT FORM OF ACYCLOVIR THE GENERIC NAME FOR ZOVIRAX WHILE THE NEW WELLCOME PRODUCT IS NOVEL ENOUGH TO RECEIVE A NEW CYCLE OF PATENT PROTECTION VALACICLOVIR IS SO SIMILAR TO ZOVIRAX THAT WELLCOME OFFICIALS EXPECT BOTH DRUGS TO HAVE ALMOST IDENTICAL SAFETY PROFILES BY CONTRAST WITH THE DEFENSE OF ITS ANTIVIRAL FRANCHISE WELLCOME'S LONGERRANGE DRUG DISCOVERY PROGRAMS AIM TO ESTABLISH THE COMPANY AS A LEADER IN OTHER THERAPEUTIC AREAS CARDIOPULMONARY ANTICANCER AND CENTRAL NERVOUS SYSTEM THE QUEST FOR NEW MEDICINES IN THOSE AREAS IS BASED ON THE LATEST ADVANCES IN MOLECULAR BIOLOGY EXPERIMENTS WITH HUMAN PAPILLOMA VIRUS WHICH CAUSES SKIN WARTS HAVE PROVIDED WELLCOME LABS WITH A TRACK TOWARD A POSSIBLE CURE FOR CERVICAL CANCER ACCORDING TO SALVADOR MONCADA WELLCOME'S DIRECTOR OF THERAPEUTIC RESEARCH THERE IS NOW AMPLE EVIDENCE SUGGESTING THAT GENITAL WARTS ARE A PRECURSOR TO CERVICAL CANCER HOWEVER NO DRUG THERAPY FOR THE DISEASE YET EXISTS AND THE PAPILLOMA VIRUS HAS BEEN DIFFICULT TO GROW IN LABS WELLCOME SCIENTISTS EVENTUALLY SOLVED THE PROBLEM THEY ALSO MANAGED TO TRANSPLANT THE PAPILLOMA VIRUS WART TO THE SKIN OF MICE PROVIDING ANIMAL MODELS FOR RAPID SCREENING OF DOZENS OF COMPOUNDS FOR POSSIBLE EFFICACY AGAINST THE WARTS DR MONCADA HIMSELF PERFORMED PIONEERING RESEARCH A FEW YEARS AGO ON NITRIC OXIDE A GAS THAT NOW APPEARS INSTRUMENTAL IN REGULATING A NUMBER OF BODILY PROCESSES INCLUDING BLOOD PRESSURE THE IMMUNE SYSTEM AND NEURODEGENERATIVE DISORDERS SUCH AS ALZHEIMER'S DISEASE BY THE EARLY 1980S MEDICAL RESEARCHERS WERE SUGGESTING THAT NITRIC OXIDE WAS AN IMPORTANT REGULATOR OF KEY BODILY ACTIVITIES NITRIC OXIDE SEEMS TO BE CONSTANTLY PRODUCED TO KEEP BLOOD VESSELS OPEN AND BLOOD FLOWING THROUGH THEM DR MONCADA EXPLAINED THE EXISTENCE OF THIS MECHANISM IS GOING TO SIGNIFICANTLY CHANGE THE WAY WE THINK OF THE CONTROL OF BLOOD PRESSURE IN THE FUTURE REFLECTING POISONOUS QUALITIES NITRIC OXIDE ALSO APPEARS TO BE THE WEAPON WIELDED BY MACROPHAGES WHICH ARE BLOOD CELLS ABLE TO KILL INVADING BACTERIA AND MALIGNANT TUMOR CELLS PERHAPS MORE IMPORTANTLY NITRIC OXIDE IS AN INTEGRAL PART OF THE SIGNALING SYSTEM USED BY NEURONS OR NERVE CELLS IN THE BRAIN YET IN THE EVENT OF STROKE OR A HEAD INJURY THAT SIGNALING SYSTEM APPARENTLY GOES AMOK CAUSING EXCESSIVE RELEASE OF NITRIC OXIDE THAT LEADS TO MASS DESTRUCTION OF BRAIN CELLS A SIMILAR THOUGH SLOWER PROCESS MAY BE A CAUSE OF ALZHEIMER'S AND OTHER NEURODEGENERATIVE DISEASES DR MONCADA SAID WELLCOME HAS DEVELOPED A DRUG KNOWN AS 619C89 AGAINST ACUTE STROKE THAT WORKS BY INHIBITING THE EXCESSIVE RELEASE OF GLUTAMATE ANOTHER SOCALLED NEUROTRANSMITTER AND PRECURSOR OF NITRIC OXIDE THE WELLCOME DRUG IS IN PILOT STUDIES AND DR MONCADA SAID IT COULD ENTER FULL CLINICAL TRIALS AS EARLY AS NEXT YEAR DESIGNING MEDICINES AGAINST OTHER FUNCTIONS OF NITRIC OXIDE THREATENS TO BE TRICKY BECAUSE THE GAS LASTS ONLY SECONDS AFTER BEING MANUFACTURED IN THE BODY IT ALSO REMAINS A MYSTERY EXACTLY HOW NITRIC OXIDE FUNCTIONS IN THE CELL 9305140116 930514 BAUPOST SUES PROVIDENTIAL SAN FRANCISCO A LAWSUIT WAS FILED AGAINST PROVIDENTIAL CORP BY THE BAUPOST GROUP INC ALLEGING THE MORTGAGE LOAN COMPANY IMPROPERLY APPROVED EXECUTIVE COMPENSATION PLANS THE BAUPOST GROUP AN INVESTMENT COMPANY IN CAMBRIDGE MASS SAID PROVIDENTIAL DIRECTORS IMPROPERLY APPROVED EXCESSIVE COMPENSATION PLANS AT A TIME WHEN PROVIDENTIAL'S STOCK HAD LOST 70 OF ITS VAULE SINCE AN INITIAL PUBLIC OFFERING IN EARLY 1992 BAUPOST THE SINGLE LARGEST SHAREHOLDER IN PROVIDENTIAL WITH A 24 STAKE SAID IT WAS ASKING IN THE SUIT THAT THE COMPANY'S ANNUAL MEETING BE DELAYED AND THAT COMPENSATION PLANS BE PROHIBITED A PROVIDENTIAL SPOKESMAN COULD NOT BE REACHED FOR COMMENT 9305140115 930514 THURSDAY'S MARKETS STOCKS AND BONDS TUMBLE FOLLOWING INFLATION REPORT BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL A SECOND DAY OF WORSETHANEXPECTED INFLATION DATA HAMMERED STOCK AND BOND PRICES THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 3432 POINTS TO 344799 FROM A RECORD 348231 STANDARD & POOR'S 500STOCK INDEX LOST 557 TO 43923 AND THE NASDAQ COMPOSITE INDEX SANK 605 TO 67564 THE TREASURY'S BENCHMARK 30YEAR ISSUE SKIDDED 1 1/4 POINTS OR 1250 FOR EACH 1000 FACE AMOUNT THE YIELD ROSE TO 695 STOCK AND BOND PRICES PLUNGED AFTER THE LABOR DEPARTMENT REPORTED ITS CONSUMER PRICE INDEX JUMPED 04 IN APRIL ABOVE THE 03 INCREASE ECONOMISTS HAD PREDICTED THAT REPORT FOLLOWED WEDNESDAY'S ANNOUNCEMENT THAT WHOLESALE PRICES IN APRIL SHOT UP 06 AMID THE CARNAGE INFLATIONSENSITIVE MINING AND PRECIOUSMETALS STOCKS WERE AMONG THE BEST PERFORMING GROUPS ALAN BOND PRESIDENT AND CHIEF INVESTMENT OFFICER OF BOND PROCOPE CAPITAL MANAGEMENT NOTED THAT SOME TECHNOLOGY STOCKS ALSO CLIMBED TEMPERING THE MARKET'S SLIDE MR BOND NOTED THAT TECHNOLOGY STOCKS HAVE PROVIDED SOME LEADERSHIP RECENTLY TO A MARKET THAT HAS SEEN VARIOUS INDUSTRIES MOVE IN AND OUT OF THE SPOTLIGHT IN THE PAST FEW WEEKS IF TECHNOLOGY DEMONSTRATES CONTINUED LEADERSHIP I'D BE MUCH MORE POSITIVE ABOUT THE MARKET HE SAID MR BOND PREDICTED THAT THE RISE IN LONGTERM INTEREST RATES WILL RUN ITS COURSE AS THE TREASURY'S 30YEAR BOND APPROACHES A YIELD OF 7 I DON'T THINK WE'LL SEE BONDS TRADE MUCH WORSE THAN WHERE THEY ARE NOW HE SAID BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY BRUSHED ASIDE CONCERNS ABOUT ANY SERIOUS RISE IN INFLATION AS LONG AS LABOR COSTS ARE UNDER CONTROL THE RECOVERY IS SLUGGISH AND EUROPE'S GROWTH IS SLOW I DON'T SEE INFLATION HEATING UP MR WIEN SAID OVERSEAS SPAIN SURPRISED FINANCIAL MARKETS BY DEVALUING ITS PESETA 8 AGAINST OTHER CURRENCIES IN THE EUROPEAN EXCHANGE RATE MECHANISM A JOINT FLOAT OF NINE CONTINENTAL CURRENCIES THE PORTUGUESE ESCUDO WAS DEVALUED 65 ALTHOUGH YESTERDAY'S DEVALUATIONS PUT SOME PRESSURE ON THE DANISH KRONE AND MIGHT MEAN FUTURE STRAINS FOR THE FRENCH FRANC THE MARKETS WILL SEE THIS ERM REALIGNMENT AS ONE THAT TAKES MISALIGNED CURRENCIES BACK TO MORE JUSTIFIED LEVELS SAID AVINASH PERSAUD A SENIOR CURRENCY ECONOMIST AT UBS LTD IN LONDON THIS THEREFORE STRENGTHENS THER THAN UNDERMINES THE ERM WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 062 TO 10450 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2899 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1412 ISSUES FELL AND 597 ROSE THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 1616 MARKS AND 11188 YEN COMPARED WITH 16100 MARKS AND 11155 YEN WEDNESDAY 9305140114 930514 HONG KONG TRADE DATA HONG KONG HONG KONG'S MARCH TRADE SURPLUS WITH THE US WIDENED 11 TO 987 BILLION HONG KONG DOLLARS US128 BILLION FROM THE YEAREARLIER'S HK893 BILLION BOOSTED BY A 23 INCREASE IN REEXPORTS ACCORDING TO OFFICIAL FIGURES DURING THE MONTH HONG KONG POSTED A TRADE DEFICIT OF HK379 BILLION WITH CHINA WHICH WAS THE COLONY'S LARGEST MARKET FOR DOMESTIC EXPORTS AND REEXPORTS REEXPORTS ARE GOODS IMPORTED AND RESHIPPED ABROAD WITHOUT MATERIAL CHANGE THE MAINLAND IS ALSO THE COLONY'S LARGEST SOURCE OF IMPORTS FOLLOWED BY JAPAN TAIWAN AND THE US 9305140113 930514 MADISON GROUP IS LESS THAN MEETS EYE STOCK BOILS AWAY AFTER ARTICLE QUESTIONING ASSETS BY LAURIE DELATER WEEKS SPECIAL TO THE WALL STREET JOURNAL NEW YORK IF YOU BELIEVE ITS PUBLICITY MADISON GROUP ASSOCIATES INC IS A COMPANY ON THE MOVE THE SMALL DEERFIELD BEACH FLA CONCERN OWNS FILM LIBRARIES AND COUNTRY MUSIC VIDEOS WHICH IT SAYS IT INTENDS TO MARKET TO VARIOUS VENUES IT HAS ISSUED A SERIES OF NEWS RELEASES THIS YEAR BOASTING THAT IT HAS MADE STRONG HEADWAY INTO THE MEDIA AND COMMUNICATIONS MARKETPLACE WITH SIGNIFICANT INDUSTRYWIDE ACQUISITIONS AND TOUTING A RUNNING TALLY OF ITS ASSETS WHICH IT SAYS NOW TOTAL MORE THAN 41 MILLION BUT AN INVESTIGATION BY DOW JONES NEWS SERVICE HAS RAISED QUESTIONS ABOUT THE VALUE OF THOSE ASSETS ABOUT THE COMPANY AND ABOUT ITS CHIEF EXECUTIVE WILLIAM T CRAIG THE PUBLICATION OF AN ARTICLE ON THOSE QUESTIONS BY THE NEWS SERVICE BROUGHT AN ANGRY RESPONSE FROM MADISON WHICH CALLED INFORMATION IN THE ARTICLE INACCURATE FALSE AND MISLEADING AFTER THE ARTICLE RAN SHARES IN MADISON WHICH TRADES OVER THE COUNTER FELL 121875 APIECE OR 57 TO 90625 CENTS YESTERDAY FOR THE DAY THE COMPANY WITH ABOUT SIX MILLION SHARES OUTSTANDING LOST 73 MILLION IN MARKET CAPITALIZATION WHICH NOW STANDS AT 54 MILLION IN THE PAST YEAR THE SHARES TRADED AS HIGH AS 375 WHICH MEANS INVESTORS ONCE HAD PUMPED 225 MILLION INTO MADISON THE CHIEF QUESTION ABOUT THE COMPANY CONCERNS THE VALUE OF ITS ASSETS THE FILM AND AUDIO LIBRARIES APPEAR TO HAVE LIMITED MARKET POTENTIAL AND THE 301 MILLION VALUATION PRESENTED TO INVESTORS WAS BASED AT LEAST PARTLY ON APPRAISALS BY A CONCERN WHOSE CHAIRMAN IS A DEFENDANT IN A RACKETEERING CASE ANOTHER 88 MILLION IN ASSETS CONSISTS OF NOTES DUE FROM TWO COMPANIES THAT APPEAR TO HAVE HAD TIES TO MADISON'S CHIEF EXECUTIVE ONE COMPANY COULDN'T BE LOCATED THE OTHER APPEARS UNLIKELY TO MAKE GOOD ON THE DEBT AND WHILE A RECENT NEWS RELEASE ANNOUNCED A 65 MILLION LOAN COMMITMENT FOR MADISON GROUP MR CRAIG SAID IN RESPONSE TO A QUESTION A WEEK LATER THAT THE COMMITMENT HAD NOT IN FACT BEEN RECEIVED MR CRAIG SAID AN OUTSIDE PUBLIC RELATIONS FIRM WHICH HE WOULDN'T IDENTIFY HAD ISSUED THE RELEASE WITHOUT MADISON GROUP'S KNOWLEDGE BUT BUSINESS WIRE WHICH DISTRIBUTED THE RELEASE ELECTRONICALLY SAID IT CAME FROM A COMPANY HEADED BY RICHARD R DWYER JR WHO WAS HIRED THREE WEEKS LATER AS MADISON'S PRESIDENT THE CORE OF MADISON'S ASSETS ARE GOSPEL MUSIC TELEVISION PROGRAMS FILM AND VIDEO LIBRARIES AND COUNTRY AND GOSPEL MUSIC VIDEOS THEY WERE PURCHASED EITHER BY MADISON OR ITS PREVIOUS INCARNATION CANAVERAL INTERNATIONAL A COMPANY THAT HAD BEEN HEADED FOR MORE THAN 30 YEARS BY TWO BROTHERS HENRY AND DANIEL DUBBIN SECURITIES AND EXCHANGE COMMISSION FILINGS INDICATE THE COMPANY ACQUIRED ITS MEDIA PRODUCTS MOSTLY BY ISSUING TO THE SELLERS EITHER COMMON STOCK OR CONVERTIBLE PREFERRED STOCK BECAUSE THE CONVERTIBLE PREFERRED STOCK DOESN'T TRADE PUBLICLY IT'S DIFFICULT TO DETERMINE JUST HOW MUCH MADISON GROUP PAID FOR THE PRODUCTS AS TO THEIR MARKETABILITY JEFF WALKER PRESIDENT OF ARISTO MEDIA INC IN NASHVILLE TENN AND A PROMOTER OF COUNTRY MUSIC VIDEOS FOR MAJOR RECORD LABELS SAID AFTER REVIEWING A LIST DESCRIBING MADISON GROUP'S COUNTRY MUSIC VIDEOS THAT THE COLLECTION'S BIGGEST POTENTIAL WOULD BE AS MATERIAL FOR A RETROSPECTIVE ON NASHVILLE MANY OF THE VIDEOS DATED BACK SEVERAL YEARS AND SOME OF THESE PEOPLE ARE DEAD NOW OR ARE NO LONGER PURSUING A COUNTRY MUSIC CAREER HE SAID THEY'RE OLD SAYS BILL TURNER A PRODUCER FOR THE NASHVILLE NETWORK A COUNTRY CABLE TELEVISION NETWORK WHO IS FAMILIAR WITH THE VIDEOS WE'RE TALKING OLD OLD MR TURNER SAID THE VIDEOS MIGHT BE MARKETABLE TO LOWPOWER TELEVISION STATIONS BUT THAT WOULD REQUIRE AN EFFORT LIKE SELLING PEANUTS ONE AT A TIME A CORPORATE PROFILE OF MADISON DISTRIBUTED IN JULY 1992 SKETCHED BIG PLANS FOR MAKING MONEY FROM THE MEDIA LIBRARIES NONE OF THE PLANS HAD MATERIALIZED BY THE END OF MARCH 1993 THE MOST RECENT DATE FOR WHICH FINANCIAL RESULTS ARE AVAILABLE THROUGH THEN MADISON GROUP REPORTED ONLY ONE SALE FROM ITS MEDIA PRODUCTS TO CELESTA CORP ACCORDING TO A REGULATORY FILING ALTHOUGH THE FILING DIDN'T PROVIDE ANY INFORMATION ABOUT CELESTA IT APPEARS THAT IT'S THE SAME COMPANY MR CRAIG HEADED BEFORE COMING TO MADISON THE 5 MILLION SALE WAS RECORDED NOT AS REVENUE BUT AS AN ASSET IN THE FORM OF NOTES RECEIVABLE ANOTHER FILING INDICATES DOW JONES NEWS SERVICE REPORTED IN OCTOBER THAT CANAVERAL SAID CELESTA'S NOTE WAS CONVERTIBLE OVER THE NEXT 12 MONTHS INTO CELESTA COMMON STOCK EFFORTS TO LOCATE CELESTA WERE UNSUCCESSFUL ADDRESSES AND PHONE NUMBERS FOR CELESTA OBTAINED THROUGH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS STATE RECORDS AND MARKET MAKERS LED TO DEAD ENDS A MARKET MAKER SAID THE STOCK IS OFFERED FOR SALE AT A FRACTION OF A PENNY SO WHERE DID THE 301 MILLION ASSET VALUATION COME FROM MADISON'S ANNUAL REPORT SAYS IT WAS BASED ON INDEPENDENT APPRAISALS A FIRM CALLED APPRAISAL GROUP INC OF MIAMI APPRAISED THE LIBRARIES THAT REPRESENTED MADISON'S FIRST TWO ACQUISITIONS AND WAS SUPPOSED TO DO THE SAME FOR THE THIRD PURCHASE IN JUNE 1992 ACCORDING TO OTHER MADISON FILINGS APPRAISAL GROUP CHAIRMAN JACK BIRNHOLZ IS A DEFENDANT IN A CIVIL RACKETEERING LAWSUIT BROUGHT BY LOUISIANA IN AUGUST IN CONNECTION WITH THE FAILURE OF A GROUP OF INSURANCE COMPANIES AMONG OTHER THINGS THE SUIT ALLEGES THAT OTHER DEFENDANTS ALTERED THE BOOKS OF AN INSURANCE FIRM BY RECORDING A PIECE OF PROPERTY ON ITS BOOKS AT A FALSE VALUE USING A FALSE REAL ESTATE APPRAISAL SUPPLIED BY MR BIRNHOLZ THROUGH APPRAISAL GROUP DURING THE AUDIT FOR MADISON'S FISCAL YEAR ENDED SEPT 30 1992 THE COMPANY'S LONGTIME AUDITOR VAUGHN M SARKISSIAN RESIGNED IN A DISPUTE OVER THE CHOICE OF AN INDIVIDUAL TO VALUE THE ASSETS INDEPENDENTLY HIS SUCCESSOR MA CABRERA & CO OF FORT LAUDERDALE FLA SIGNED OFF ON THE 301 MILLION VALUATION BUT ISSUED A CAVEAT THERE IS NO ASSURANCE THAT THE COMPANY CAN REALIZE SUFFICIENT REVENUES FROM ITS MEDIA PRODUCTS TO ATTAIN PROFITABLE OPERATIONS THE ULTIMATE REALIZATION OF THE CARRYING VALUES OF THESE PRODUCTS IS DEPENDENT ON THE COMPANY'S ABILITY TO SUCCESSFULLY MARKET THESE PRODUCTS A CORPORATE PROFILE PUBLISHED BY MADISON LAST YEAR WHEN IT WAS STILL KNOWN AS CANAVERAL SAYS MR CRAIG WAS A GRADUATE OF THE UNIVERSITY OF MINNESOTA WITH DEGREES IN BUSINESS AND MATHEMATICS THE UNIVERSITY'S RECORDS SHOW HE ATTENDED BUT NEVER GRADUATED ASKED ABOUT HIS BACKGROUND IN A BRIEF TELEPHONE INTERVIEW MR CRAIG SAID HE WASN'T GOING TO GET INTO THAT HE SAID HE HAD BEEN A BUILDER WITH HIS OWN COMPANY BUT DECLINED TO GIVE DETAILS BEFORE BECOMING THE HEAD OF MADISON IN MARCH 1992 I WAS RETIRED FOR ABOUT EIGHT YEARS SAID MR CRAIG 46 YEARS OLD THE PHONE LINE THEN WENT DEAD AND FURTHER EFFORTS TO INTERVIEW MR CRAIG WERE UNSUCCESSFUL BEFORE THERE WAS MADISON THERE WAS CANAVERAL BUT BY LATE 1991 THE DUBBIN BROTHERS WERE IN THEIR 70S AND HAD WOUND DOWN CANAVERAL'S REAL ESTATE DEVELOPMENT BUSINESS THEY ADVERTISED THAT THEIR CONTROLLING INTEREST WAS FOR SALE HENRY DUBBIN SAID AND MR CRAIG ANSWERED THE AD MR CRAIG HAD HAD DEALINGS WITH AT LEAST THREE OTHER INACTIVE OR TROUBLED PUBLIC COMPANIES IN 1991 SEC FILINGS SHOW ONE OF THEM TELENETICS CORP CAME CLOSE TO DOING BUSINESS WITH HIM TELENETICS CHAIRMAN WILLIAM C KOSOFF RECALLED THAT MR CRAIG WAS LOOKING FOR A SHELL FINANCIAL JARGON FOR SEEKING A COMPANY WITHOUT MANY ASSETS OR MUCH BUSINESS ACTIVITY TELENETICS DIDN'T QUITE FIT THE BILL BUT IT WAS CLOSE THE SMALL MAKER OF DATA COMMUNICATIONS EQUIPMENT WAS STRAPPED FOR CASH AND IN DANGER OF LOSING ITS STOCK LISTING ON NASDAQ IN JUNE 1991 SEC FILINGS SHOW TELENETICS SIGNED AN AGREEMENT TO ACQUIRE THE GAMING NEWS NETWORK A COMPANY ALSO KNOWN AS CELESTA CORP WHOSE CHIEF EXECUTIVE WAS MR CRAIG THE PACT CALLED FOR EFFORTS TO RAISE 500000 FOR TELENETICS BUT AS TELENETICS BEGAN ITS CUSTOMARY CHECKS BEFORE FINALIZING THE DEAL OFFICIALS GREW UNEASY MR KOSOFF SAID IT BASICALLY CAME DOWN TO WE COULDN'T GET ANSWERS ABOUT THINGS WE NEEDED TO KNOW TO DO SOME DUE DILIGENCE HE SAID THEY JUST WERE NOT WILLING TO GIVE US ANY INFORMATION 9305140112 930514 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FRANCE TOOK A NEW STANCE AIMED AT UNBLOCKING NEGOTIATIONS ON LIBERALIZED WORLD TRADE BUT SET TOUGH CONDITIONS FOR AN ACCORD EUROPEAN COMMUNITY OFFICIALS EXPRESSED RELIEF BUT SAID SOME DEMANDS WOULD BE DIFFICULT OR IMPOSSIBLE TO MEET FRANCE'S NEW CENTERRIGHT GOVERNMENT PROPOSED SHIFTING THE FOCUS OF TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE AWAY FROM US AND EUROPEAN DISAGREEMENTS ABOUT AGRICULTURE IT CALLED FOR A TRUCE ON FRENCHUS TRADE DISPUTES AND FOR OPENING MARKETS ABROAD TO EC INDUSTRIAL GOODS AND IT URGED THE EC AND THE US TO AGREE ON ACCESS TO EACH OTHER'S MARKETS TO ALLOW PRESSURE ON OTHER GATT COUNTRIES TO REDUCE TRADE BARRIERS THOUGH FRANCE DROPPED THE PREVIOUS GOVERNMENT'S IDEA OF VETOING LAST YEAR'S TENTATIVE ECUS FARM ACCORD IT CALLED FOR RENEGOTIATING PARTS OF IT SUCH AS EC EXPORT SUBSIDIES BUT IN A CONCILIATORY MOVE IT DIDN'T MENTION THE ECUS OILSEEDS ISSUE WHICH HAS BEEN A SORE POINT FRANCE ALSO WANTS RELIEF FROM FOREIGN EXCHANGE FLUCTUATIONS AN END TO UNILATERAL US TRADE RETALIATION EXCEPTIONS FOR SOME FRENCH SUBSIDIES AND THE ABILITY TO PROTECT FRENCH JOBS WITH HIGH TARIFFS SINGAPORE AIRLINES LAUNCHED WHAT IT SAID IS THE INDUSTRY'S FIRST AIRBORNE FACSIMILE TRANSMISSION SERVICE PASSENGERS MAY SEND MESSAGES WORLDWIDE FOR 15 A PAGE BUT CAN'T RECEIVE FAXES THE CARRIER BEGAN THE SERVICE ON FLIGHTS BETWEEN SINGAPORE AND LONDON AND PLANS TO INSTALL FAX MACHINES ON 19 OTHER LONGDISTANCE ROUTES BY THE END OF NEXT YEAR THE SERVICE USES SATELLITE GROUND STATIONS IN SINGAPORE NORWAY AND BRITAIN IN A SYSTEM OWNED BY THE INTERNATIONAL MARITIME SATELLITE ORGANIZATION A 65NATION COOPERATIVE RUSSIAN SCIENTISTS SAID THE GOVERNMENT GROSSLY UNDERESTIMATED CONTAMINATION FROM THE APRIL 6 RADIOACTIVEWASTE EXPLOSION IN SIBERIA THE ACCIDENT NEAR TOMSK THE WORST IN THE FORMER SOVIET UNION SINCE THE 1986 NUCLEAR CATASTROPHE AT CHERNOBYL CONTAMINATED 46 SQUARE MILES MUCH OF IT UNINHABITED FOREST AND AUTHORITIES SAID IT DIDN'T POSE ANY HEALTH DANGER BUT A COMMISSION OF LOCAL ENVIRONMENTAL OFFICIALS INDEPENDENT SPECIALISTS FROM THE ECOLOGY UNION AND SCIENTISTS FROM KRASNOYARSK FOUND EXTREMELY HIGH RADIATION LEVELS IN SOIL IN THE AREA ABOUT 1700 MILES EAST OF MOSCOW IT SAID BREATHING DUST PARTICLES COULD CAUSE FATAL DISEASES BRAZIL NEXT MONTH WILL SWITCH CURRENCIES FOR THE SIXTH TIME IN 25 YEARS THE CRUZEIRO'S VALUE HAS BEEN ERODED BY RELENTLESS INFLATION WHICH RAN AT 1150 LAST YEAR AND BANKNOTES IN INCREASINGLY LARGER DENOMINATIONS HAVE BEEN INTRODUCED 91 TIMES SINCE 1980 IN A TRANSITION THAT MAY TAKE SIX MONTHS TO COMPLETE THREE ZEROS WILL BE DELETED FROM THE CURRENCY WHICH WILL BE RENAMED THE NEW CRUZEIRO THIS WON'T HALT INFLATION BUT MAY MAKE PRICES EASIER TO FIGURE A NEW CAR LISTS FOR 500 MILLION CRUZEIROS 14650 AND A POLO SHIRT SELLS FOR 1 MILLION CRUZEIROS 2930 THE FRENCH ECONOMY IS OFFICIALLY IN RECESSION THE NATIONAL INSTITUTE OF STATISTICS AND ECONOMIC STUDIES DECLARED THE STATERUN THINK TANK PREDICTED THE ECONOMY WILL CONTRACT THREEFOURTHS OF A PERCENTAGE POINT IN THE FIRST HALF FROM LAST YEAR'S SECOND HALF AND COULD SHRINK A FULL POINT THIS YEAR IF CURRENT TRENDS PERSIST WITH DOMESTIC DEMAND STAGNANT AS JOBLOSS FEARS AND SAVINGS RISE BUSINESS CONTINUES TO CUT BACK ON INVESTMENT THE JOBLESS RATE COULD RISE TO 112 IN JUNE FROM 107 IN MARCH INTERESTRATE DECLINES IN THE PAST MONTH HAVEN'T HAD A SIGNIFICANT EFFECT ON THE ECONOMY THOUGH A NEW GOVERNMENTSTIMULUS PACKAGE COULD HELP A BIT CHINA'S TRADE IN THIS YEAR'S FIRST FOUR MONTHS ROSE 16 TO 4775 BILLION FROM A YEAR EARLIER AND IMPORTS OUTPACED EXPORTS RESULTING IN A 177 BILLION TRADE DEFICIT HUNGARY SAID PRICES ARE RISING FASTER THAN EXPECTED AND PREDICTED A 1993 INFLATION RATE OF 20 FOOD PRICES ARE UP ABOUT 30 FROM A YEAR AGO 9305140111 930514 FOUNDERS BUY UNITED MEDICAL HADDONFIELD NJ UNITED MEDICAL CORP SAID THAT ITS SHAREHOLDERS APPROVED A PLAN BY ITS TWO FOUNDERS TO BUY THE 48 OF THE COMPANY THEY DON'T ALREADY OWN THE PROVIDER OF MEDICAL SERVICES INCLUDING ELECTROCARDIOGRAM AND PACEMAKER MONITORING SAID THAT THE NEARLY 13 MILLION SHARES WOULD BE ACQUIRED FOR 950 EACH THE 119 MILLION TRANSACTION WAS EXPECTED TO BE COMPLETED YESTERDAY UNITED MEDICAL'S PLAN TO GO PRIVATE WAS APPROVED BY THE BOARD IN JANUARY ITS FOUNDERS ARE CHAIRMAN JOHN AGLIALORO AND PRESIDENT JOAN CARTER 9305140110 930514 TECHNOLOGY SMITHKLINE JANSSEN AGREEMENT PHILADELPHIA SMITHKLINE BEECHAM AND JANSSEN PHARMACEUTICA INC A UNIT OF JOHNSON & JOHNSON SAID THEY AGREED TO JOINTLY PROMOTE TWO DRUGS TO PSYCHIATRISTS BOTH COMPANIES WILL BEGIN TO SELL SMITHKLINE'S PAXIL AN ANTIDEPRESSANT WITHIN THE NEXT COUPLE OF MONTHS A SMITHKLINE SPOKESWOMAN SAID JANSSEN'S RISPERDAL A TREATMENT FOR SCHIZOPHRENIA WILL BE SOLD BY BOTH COMPANIES AFTER IT RECEIVES FOOD AND DRUG ADMINISTRATION APPROVAL SMITHKLINE A UNIT OF SMITHKLINE BEECHAM PLC WILL CONTINUE TO SELL PAXIL ON ITS OWN TO PRIMARY CARE PHYSICIANS 9305140109 930514 FINANCING BUSINESS AES CORP AES CORP ARLINGTON VA SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 75 MILLION OF COMMON STOCK AND EXPECTS TO FILE SHORTLY FOR A 75 MILLION NOTE OFFERING AES A SUPPLIER OF ELECTRICITY TO PUBLIC UTILITIES AND STEAM TO INDUSTRIAL CONCERNS SAID SOME OF THE NET PROCEEDS WOULD PAY FOR ITS SHARE IN THE SAN NICOLAS POWER STATION IN ARGENTINA AES SAID THE ARGENTINE GOVERNMENT HAS APPROVED THE SALE OF THE STATION 9305140108 930514 MCDERMOTT'S BABCOCK & WILCOX NEW ORLEANS BABCOCK & WILCOX CO A UNIT OF MCDERMOTT INTERNATIONAL INC SAID IT HAS A CONTRACT VALUED AT 400 MILLION WITH THE STATE UTILITY OF INDONESIA TO EXPAND AN ELECTRIC POWER PLANT IN WEST JAVA MCDERMOTT INTERNATIONAL IS AN ENERGY SERVICE COMPANY BABCOCK & WILCOX WHICH MAKES STEAMGENERATING EQUIPMENT FOR POWER PLANTS EXPECTS WORK ON THE PROJECT TO START LATER THIS YEAR SUCH EXPANSIONS TYPICALLY TAKE THREE OR FOUR YEARS SAID A MCDERMOTT SPOKESMAN 9305140107 930514 INTEGON CLEARS REPURCHASE PLAN WINSTONSALEM NC INTEGON CORP SAID ITS BOARD AUTHORIZED A PLAN TO REPURCHASE AS MUCH AS 50 MILLION OF THE COMPANY'S COMMON STOCK OVER THE NEXT THREE YEARS TO ENHANCE SHAREHOLDER VALUE AT CURRENT PRICES THE REPURCHASE WOULD AMOUNT TO ABOUT 166 MILLION OUT OF A TOTAL OF 172 MILLION SHARES OUTSTANDING THE INSURANCE HOLDING COMPANY ALSO SAID ITS BOARD AUTHORIZED THE PURCHASE OF ITS 8 SENIOR NOTES AS MARKET CONDITIONS WARRANT HOWEVER THE COMPANY SAID DESPITE THAT AUTHORIZATION IT HAS NO PLANS TO BUY BACK THE NOTES OF WHICH THERE ARE 75 MILLION PRINCIPAL AMOUNT OUTSTANDING AS LONG AS THEY ARE SELLING AT A PREMIUM ON THE NEW YORK STOCK EXCHANGE INTEGON SHARES ROSE 1 TO 3025 9305140106 930514 SEARS AGREES TO SELL RESIDENTIAL PORTION OF COLDWELL BANKER TO INVESTMENT GROUP BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL OVERLAND PARK KAN SEARS ROEBUCK & CO SIGNALED THAT ITS MAJOR DIVESTITURE PROGRAM IS ON COURSE BY AGREEING TO SELL THE RESIDENTIAL PORTION OF ITS COLDWELL BANKER UNIT TERMS WEREN'T DISCLOSED MANY SHAREHOLDERS AT THE ANNUAL MEETING HERE LET MANAGEMENT KNOW THEY ARE EAGER TO SEE SEARS'S PERFORMANCE IMPROVE THEY GAVE STRONGER SUPPORT THAN A YEAR AGO TO TWO SHAREHOLDER ACTIVIST PROPOSALS THE PROPOSALS WHICH WERE DEFEATED CALLED FOR THE ANNUAL ELECTION OF DIRECTORS AND THE SEPARATION OF THE POSITIONS OF CHAIRMAN AND CHIEF EXECUTIVE SEARS SAID IT WILL SELL COLDWELL BANKER'S RESIDENTIAL RETAIL DIVISION TO FREMONT GROUP A PRIVATE INVESTMENT CONCERN THAT MANAGES OVER 35 BILLION IN ASSETS IN A VARIETY OF BUSINESSES INCLUDING RETAIL REAL ESTATE ENERGY AND COMMUNICATIONS FREMONT FORMERLY CALLED BECHTEL INVESTMENTS INC IS AN AFFILIATE OF BECHTEL GROUP INC A CONSTRUCTION AND REAL ESTATE FIRM COLDWELL BANKER'S SENIOR EXECUTIVES LED BY CHAIRMAN CHANDLER BARTON ALSO ARE PARTICIPATING IN THE PURCHASE THE TRANSACTION WHICH INCLUDES MORE THAN 2100 COLDWELL BANKER OFFICES AND 50000 EMPLOYEES IS EXPECTED TO BE COMPLETED IN JULY SEARS OFFICIALS WOULDN'T SPECIFY HOW MUCH THE COMPANY WILL RECEIVE FOR THE REAL ESTATE COMPANY BUT A SEARS EXECUTIVE INDICATED THAT THE PRICE COMBINED WITH THE 328 MILLION IT WILL FETCH FROM THE SALE OF COLDWELL'S MORTGAGE BANKING GROUP IS AROUND 500 MILLION THE MOVE COMPLETES THE OUTLINE OF SEARS'S DIVESTITURE PROGRAM DESIGNED TO BRING THE RETAIL AND FINANCIALSERVICES CONCERN 3 BILLION IT PLANS TO USE PROCEEDS TO REDUCE DEBT AND TO FOCUS RESOURCES ON ITS AILING RETAIL OPERATION THE AGREEMENT TO SELL THE RESIDENTIAL UNIT TO FREMONT COMES LESS THAN A MONTH AFTER SEARS BROKE OFF NEGOTIATIONS WITH A GROUP OF POTENTIAL BUYERS THAT INCLUDED TEXAS INVESTOR ROBERT BASS THOSE TALKS BROKE DOWN ACCORDING TO PEOPLE CLOSE TO THE NEGOTIATIONS AFTER COLDWELL BANKER REPORTED A 77 MILLION FIRSTQUARTER LOSS SEARS'S INITIATIVE TO DIVEST ITSELF OF LARGE PORTIONS OF ITS FINANCIALSERVICES HOLDINGS WAS SPARKED IN PART BY PRESSURE FROM SHAREHOLDERS AT LAST YEAR'S ANNUAL MEETING AT YESTERDAY'S SESSION MANY SHAREHOLDERS AGAIN VOTED AGAINST THE RECOMMENDATIONS OF MANAGEMENT SEARS SAID 435 OF THE SHARES SUPPORTED A PROPOSAL TO ELECT ALL DIRECTORS ANNUALLY AS WAS THE CASE BEFORE 1988 LAST YEAR 41 OF THE VOTES SUPPORTED THE MEASURE SHAREHOLDERS ALSO VOTED IN LARGER NUMBERS FOR A PROPOSAL THAT ESSENTIALLY CALLS FOR EDWARD A BRENNAN SEARS'S CHAIRMAN AND CHIEF EXECUTIVE TO GIVE UP ONE OF THOSE POSTS THIS YEAR THE MEASURE GARNERED 34 OF THE VOTES UP FROM 27 LAST YEAR SEARS OFFICIALS GAVE NO INDICATION THAT THEY INTEND TO CONSIDER THE LOSING SHAREHOLDER PROPOSALS INSTEAD THEY SAID THE COMPANY PLANS TO CONTINUE FOCUSING ON IMPROVING ITS FINANCIAL PERFORMANCE BUT ABSENT AFTER YESTERDAY'S VOTING WAS THE TENSION AND ENSUING STRIDENCY THAT FOLLOWED THE 1992 ANNUAL MEETING FOR INSTANCE OFFICIALS OF THE NEW YORK CITY EMPLOYEES RETIREMENT SYSTEM A CHIEF ADVOCATE OF THE SHAREHOLDER PROPOSALS SAID THEY WERE PLEASED THAT SEARS SHAREHOLDERS TOOK THE LONGTERM VIEW IN SUPPORTING THEIR PROPOSALS MR BRENNAN SAID THE COMPANY'S RELATIONSHIP WITH ITS SHAREHOLDER GROUPS HAD IMPROVED FROM LAST YEAR AFTER REPRESENTATIVES OF BOTH SIDES HELD SEVERAL MEETINGS BUT YESTERDAY'S MEETING DID PROVIDE SOME CONTROVERSY IT WAS INTERRUPTED BY A GROUP OF DEMONSTRATORS WHO COMPLAINED ABOUT SEARS'S ALLSTATE INSURANCE UNIT THEY ALLEGED THAT ALLSTATE WAS GUILTY OF REDLINING IN INNERCITY COMMUNITIES THE REFUSAL BY BANKS TO MAKE MORTGAGE LOANS IN AREAS THOUGHT TO BE DECLINING SEARS OFFICIALS DELAYED A NEWS CONFERENCE TO MEET WITH THE PROTESTERS SEARS FELL 375 CENTS TO 5425 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9305140105 930514 UNFUNDED LIABILITY FOR GM'S PENSION MAY RISE 5 BILLION BY PAUL INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP SAID ITS UNFUNDED PENSION LIABILITY MAY INCREASE BY ABOUT 5 BILLION OR 35 AT YEAR END REQUIRING A NONCASH CHARGE AGAINST SHAREHOLDER EQUITY OF 18 BILLION FOR THE YEAR GM'S UNFUNDED PENSION LIABILITY AS DEFINED BY CURRENT ACCOUNTING STANDARDS STOOD AT 14 BILLION AT THE END OF LAST YEAR SO THE LEVEL COULD REACH 19 BILLION BY THE END OF 1993 THE INCREASE IN THE UNFUNDED PENSION LIABILITY THE COMPANY SAID IN A REGULATORY FILING WOULD BE A NONCASH ITEM THAT WOULDN'T AFFECT ITS ONGOING OPERATIONS THE CHARGE AGAINST EQUITY WOULDN'T AFFECT EARNINGS THE COMPANY ADDED NONETHELESS A CHARGE AGAINST EQUITY WOULD FURTHER WEAKEN A BALANCE SHEET THAT WAS BATTERED LAST YEAR BY A 208 BILLION CHARGE TO RECOGNIZE THE FUTURE COST OF RETIREE BENEFITS PRIMARILY HEALTH CARE NEW ACCOUNTING RULES FOR RECOGNIZING THIS COST HAD FAR MORE IMPACT ON THE NO 1 AUTO MAKER THAN ON ANY OTHER COMPANY AND REDUCED GM'S SHAREHOLDER EQUITY TO 62 BILLION FROM 273 BILLION AT THE END OF 1991 A FURTHER CHARGE OF 18 BILLION COULD CUT SHAREHOLDER EQUITY TO 44 BILLION THE PRIMARY CAUSE OF THE POSSIBLE 5 BILLION INCREASE IN UNFUNDED PENSION LIABILITY GM SAID WAS THE DECLINE IN INTEREST RATES EARLY THIS YEAR IN RECENT WEEKS THOUGH INTEREST RATES HAVE REBOUNDED SOMEWHAT THAT MEANS THE INCREASE IN UNFUNDED PENSION LIABILITY WOULD BE LESS THAN 5 BILLION IF CALCULATED ON TODAY'S PREVAILING RATES INTEREST RATES ON OCT 1 WILL DETERMINE THE FINAL CALCULATION FOR THE YEAR A GM SPOKESMAN SAID ACCOUNTING STANDARDS REQUIRE COMPANIES TO INCREASE THE STATED VALUE OF THEIR PENSION LIABILITIES IN ACCORDANCE WITH THE DECLINE IN YIELDS ON LONGTERM HIGHQUALITY CORPORATE BONDS THE GOOD NEWS FOR GM THOUGH IS THAT ITS PENSION ASSETS ARE INVESTED MOSTLY IN STOCKS INSTEAD OF BONDS THUS ON AN ONGOING ECONOMIC BASIS AS DISTINCT FROM ACCOUNTING STANDARDS GM'S UNFUNDED PENSION LIABILITY CURRENTLY STANDS AT AROUND 7 BILLION INSTEAD OF 14 BILLION GM'S BOARD WANTS THE 7 BILLION SHORTFALL ELIMINATED BY THE END OF THE DECADE LAST YEAR TO THAT END GM ADDED SOME 14 BILLION TO ITS PENSION ASSETS ABOUT TWICE AS MUCH AS THE MINIMUM REQUIRED BY FEDERAL REGULATIONS THIS YEAR THE COMPANY WILL CONTRIBUTE AT LEAST 2 BILLION TO THE PENSION ASSETS WELL ABOVE THE MINIMUM REQUIRED THE SPOKESMAN SAID THIS AMOUNT WILL COME OUT OF CURRENT CASH FLOW GM FUNDS ITS PENSION PLAN ON THE ASSUMPTION IT WILL EARN AN ANNUAL 10 RETURN ON ITS ASSETS THE COMPANY'S PENSION FUNDS EARNED 10 DURING THE SIX MONTHS THAT ENDED IN APRIL WHICH TRANSLATES TO A 20 RATE OF RETURN ON AN ANNUAL BASIS ONE WILD CARD IN CALCULATING FUTURE PENSION OBLIGATIONS IS THE NATIONAL CONTRACT NEGOTIATIONS THIS YEAR WITH THE UNITED AUTO WORKERS UNION GM HOPES TO AVOID INCREASING RETIREE BENEFITS BUT THE UNION IS LIKELY TO SEEK SUCH BENEFITS AT LEAST EARLY IN THE TALKS GM'S FILING ALSO STATED THAT THE DECLINE IN INTEREST RATES COULD CAUSE IT TO ADD 5 BILLION TO ITS 384 BILLION ACCUMULATED HEALTHCARE BENEFIT OBLIGATION TO RETIREES BUT THERE WOULD BE NO CASH IMPACT AND NO EFFECT ON SHAREHOLDER EQUITY IN 1993 THE COMPANY SAID THE ULTIMATE IMPACT DEPENDS ON PRESIDENT CLINTON'S HEALTHCARE REFORM PACKAGE WHICH HASN'T BEEN SPELLED OUT BY THE ADMINISTRATION REGARDLESS OF THE ACCOUNTING STANDARDS HEALTHCARE COSTS REPRESENT A HUGE PROBLEM FOR GM LAST YEAR HEALTHCARE BENEFITS TO EMPLOYEES AND RETIREES COST GM 1469 A VEHICLE THE SPOKESMAN SAID THAT IS FAR MORE THAN THE COMPANY'S COMPETITORS LARGELY BECAUSE GM MAKES MORE OF ITS OWN PARTS THAN OTHER AUTO MAKERS WALL STREET'S INITIAL REACTION TO THE GM DISCLOSURES MADE IN THE COMPANY'S 10Q FILING WITH THE SECURITIES AND EXCHANGE COMMISSION WAS MUTED AFTER THE FILING DUFF & PHELPS CREDIT RATING CO REAFFIRMED ITS SINGLEAMINUS RATING ON GM'S LONGTERM DEBT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GM FELL 1 TO 4025 9305140104 930514 MONEY FUND ASSETS DECLINE 414 BILLION TO 58391 BILLION WASHINGTON MONEYMARKET MUTUAL FUND ASSETS FELL 414 BILLION TO 58391 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED TO 58805 BILLION ASSETS OF 632 RETAIL MONEY MARKET MUTUAL FUNDS FELL 102 BILLION TO 38593 BILLION THE TRADE GROUP SAID ASSETS OF 396 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL 9433 MILLION TO 30565 BILLION ASSETS OF 236 RETAIL TAXEXEMPT FUNDS FELL 751 MILLION TO 8028 BILLION ASSETS OF THE 263 INSTITUTIONAL MONEY MARKET FUNDS FELL 312 BILLION TO 19798 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 212 TAXABLE MONEY MARKET FUNDS FELL 284 BILLION TO 17731 BILLION ASSETS OF 51 TAXEXEMPT FUNDS FELL 2725 MILLION TO 2067 BILLION 9305140103 930514 HOUSE PANEL CLEARS CLINTON'S TAX PROGRAM PRESIDENT'S PROPOSALS VOTED LARGELY INTACT CERTAIN KEY CHANGES ARE MADE BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE WAYS AND MEANS COMMITTEE APPROVED MOST OF PRESIDENT CLINTON'S TAX PROGRAM INCLUDING INCREASES FOR THE WEALTHIEST AMERICANS WHILE MAKING SIGNIFICANT CHANGES IN HIS PROPOSED BUSINESS AND ENERGY TAXES THE PACKAGE INCLUDES SEVERAL ADDITIONS TO MR CLINTON'S PLAN INCLUDING A NEW TAX ON IMPORTS THAT REQUIRE A LOT OF ENERGY IN THEIR PRODUCTION IT ALSO WOULD ESTABLISH A UNIFORM 14YEAR WRITEOFF FOR THE INTANGIBLE ASSETS TYPICALLY ACQUIRED IN BUSINESS TAKEOVERS SUCH AS SUBSCRIBER LISTS AND THE GOODWILL REPRESENTED BY A FIRM'S REPUTATION AND IT WOULD REPEAL AN UNPOPULAR TAX ON LUXURY GOODS ALL 24 DEMOCRATS ON THE WAYS AND MEANS PANEL VOTED FOR THE BILL ALL 14 REPUBLICANS WHO HAD BEEN EXCLUDED FROM SEVERAL DAYS OF CAUCUSES ON THE MEASURE OPPOSED IT THE PACKAGE DESIGNED TO REDUCE THE FEDERAL BUDGET DEFICIT BY ALMOST 300 BILLION OVER FIVE YEARS IS SCHEDULED FOR HOUSE FLOOR ACTION MAY 26 AND 27 MOST IF NOT ALL REPUBLICANS ARE EXPECTED TO VOTE AGAINST THE BILL THEN AND CHAIRMAN DAN ROSTENKOWSKI D ILL SAID IT'S GOING TO TAKE A MAJOR EFFORT BY DEMOCRATIC LEADERS TO PASS THE LEGISLATION THIS IS THE FIRST STEP IN GETTING OUR ECONOMY STRAIGHTENED OUT HE ADDED AFTER THE COMMITTEE'S VOTE IT'S A MAJOR VICTORY FOR THE ADMINISTRATION ALSO AMONG THE WINNERS WERE THE ALUMINUM AND CHLORALKALI INDUSTRIES WHICH WON A PARTIAL EXEMPTION FROM MR CLINTON'S BROAD TAX ON ENERGY CONSUMPTION MULTINATIONAL CORPORATIONS WHICH WON DELETION OF A PROPOSED TAX INCREASE ON THEIR OVERSEAS ROYALTY INCOME AND THE BARGE BOATBUILDING AND REALESTATE INDUSTRIES LOSERS INCLUDE CONSUMERS WHO WILL PAY A SLIGHTLY HIGHER ENERGY TAX TO OFFSET THE ALUMINUM EXEMPTION AS WELL AS RESTAURANTS HOTELS PROFESSIONAL SPORTS ORGANIZATIONS DISTILLERS AND BREWERS WHICH FAILED TO KILL MR CLINTON'S PROPOSAL TO REDUCE THE DEDUCTION FOR BUSINESS MEALS AND ENTERTAINMENT EXPENSES ALSO DISAPPOINTED WERE CORPORATIONS THAT SOUGHT TO CHANGE THE PRESIDENT'S PROVISIONS RESTRICTING A TAX CREDIT FOR US COMPANIES DOING BUSINESS IN PUERTO RICO AND THOSE WHO OPPOSED HIS LIMITATION ON THE OFFSHORE INCOME THEY COULD DEFER FROM TAXATION TO RAISE MORE THAN 4 BILLION IN THE COMING FISCAL YEAR THE PANEL VOTED TO INCREASE THE ADVANCE TAX PAYMENTS DUE FROM HIGHINCOME INDIVIDUALS AND CORPORATIONS THAT PAY INCOME TAXES QUARTERLY FOR ALL THE CHANGES TO MR CLINTON'S PACKAGE HIS BASIC ENERGY TAX REMAINS INTACT ALSO THE TAX PANEL LEFT UNTOUCHED THE TAX INCREASES FOR WEALTHY TAXPAYERS WHICH WOULD RAISE THE BULK OF THE NEW REVENUE MORE THAN 135 BILLION OVER FIVE YEARS LIKEWISE THE LAWMAKERS DIDN'T TOUCH A VARIETY OF SMALLER PROVISIONS TO RAISE REVENUE FROM BUSINESSES AND INDIVIDUALS AS PART OF MR CLINTON'S PROGRAM OF SHARED SACRIFICE CHAIRMAN ROSTENKOWSKI WHO CONSULTED REPEATEDLY WITH MR CLINTON DURING PAST WEEKS WAS CAREFUL TO EMPHASIZE HOW MUCH OF THE PRESIDENT'S PLAN WAS PRESERVED EVEN SO THE EXTENT OF THE COMMITTEE'S CHANGES TOOK THE WHITE HOUSE BY SURPRISE THE LAWMAKERS' ACTIVISM REFLECTED THEIR RESENTMENT THAT THE ADMINISTRATION AND PARTICULARLY TREASURY SECRETARY LLOYD BENTSEN SEEMED TO EXPECT HOUSE DEMOCRATS TO TOE THE LINE AND THEN WOULD MAKE DEALS LATER IN THE SENATE WHERE PASSAGE OF THE TAX BILL IS CONSIDERED A BIGGER PROBLEM SO THEY DEMANDED FOR INSTANCE THE ENERGYTAX EXEMPTIONS FOR ALUMINUM AS WELL AS ONE FOR FARMERS' DIESEL FUEL BOTH CONCESSIONS THAT HAD BEEN EXPECTED TO BE GRANTED TO SENATORS OTHER HIGHLIGHTS OF THE TAX PACKAGE INCLUDE A POTENTIALLY CONTROVERSIAL PROVISION UNDER WHICH ALMOST 32 BILLION THAT WOULD BE RAISED OVER FIVE YEARS FROM SOME SOCIAL SECURITY BENEFICIARIES WOULD BE PLACED INTO THE TREASURY'S GENERAL FUND RATHER THAN THE MEDICARE TRUST FUND THE PURPOSE IS TO DEDICATE THE SUM TO DEFICIT REDUCTION LAWMAKERS SAID A BASIC ENERGY TAX ON ALMOST ALL FORMS OF ENERGY CONSUMPTION OF 268 CENTS PER MILLION BRITISH THERMAL UNITS A MEASURE OF THE HEAT CONTENT OF VARIOUS FUELS THE PANEL BOOSTED THE RATE FROM 257 CENTS IN THE CLINTON PROPOSAL TO FINANCE PARTIAL EXEMPTIONS FOR THE ALUMINUM AND CHLORALKALI INDUSTRIES A COST SAID TO EXCEED 1 BILLION OVER FIVE YEARS THOSE INDUSTRIES SUCCESSFULLY ARGUED THAT THEIR MANUFACTURING PROCESSES USE ELECTRICITY NOT AS A HEAT SOURCE BUT AS A CATALYST INDISPENSABLE FOR PRODUCTION THE CHANGE WOULD LOWER ALUMINUM COMPANIES' ENERGY TAX BY ABOUT HALF AND BY AS MUCH AS 70 FOR THE CHLORALKALI INDUSTRY WHICH MAKES CHLORINE AN ENERGY TAX SURCHARGE OF 342 CENTS PER MILLION BTUS ON MOST PETROLEUM PRODUCTS TO WHICH THE COMMITTEE ADDED AN EXEMPTION FOR ALL HOMEHEATING OIL THE ADMINISTRATION HAD AGREED TO EXEMPT RESIDENTIAL OIL BUT REP BARBARA KENNELLY D CONN GOT THE COMMITTEE TO BROADEN THAT TO INCLUDE BUSINESSES THE COMMITTEE ALSO VOTED TO EXEMPT FROM THE TAX GASOLINE AND DIESEL FUEL USED IN FARMING THE NEW IMPORT TAX ON ENERGYINTENSIVE PRODUCTS ACCORDING TO THE COMMITTEE THE LEVY WOULD APPLY TO IMPORTS WHEN MORE THAN 2 OF THEIR VALUE IS DUE TO THE KIND OF ENERGY COSTS THAT WOULD BE SUBJECT TO THE CLINTON ENERGY TAX IF THE PRODUCTS' MAKERS WERE US FIRMS PROVISION FOR GAS AND ELECTRIC UTILITIES TO IMMEDIATELY CHARGE THEIR CUSTOMERS FOR THE ENERGY TAX MR CLINTON ALSO WANTED CONSUMERS TO PAY THE TAB BUT ONLY AFTER UTILITIES GOT REGULATORS' APPROVAL AN INCREASE TO 35 FROM 34 IN THE CORPORATE INCOMETAX RATE MR CLINTON HAD WANTED 36 DELETION OF THE PRESIDENT'S PROPOSED INVESTMENT TAX CREDITS FOR BIG AND SMALL BUSINESSES THE BILL'S ONLY REMAINING ECONOMIC STIMULUS WOULD BE ONE ADDED BY THE COMMITTEE INCREASING TO 25000 FROM 10000 THE AMOUNT THAT SMALL BUSINESSES COULD WRITE OFF FOR EQUIPMENT INVESTMENTS DURING THE YEAR A LESSGENEROUS METHOD FOR MULTINATIONAL COMPANIES TO ALLOCATE THEIR RESEARCH COSTS FOR PURPOSES OF US AND FOREIGN TAXATION REPEAL OF A 10 LUXURY TAX ON YACHTS PRIVATE AIRCRAFT JEWELRY AND FURS A PROVISION OF THE 1990 BUDGET AGREEMENT THAT'S BEEN BLAMED FOR JOB LOSSES IN THE BOAT INDUSTRY ESPECIALLY THE BILL WOULDN'T REPEAL THE LEVY ON LUXURY AUTOS BECAUSE THAT TAX UNLIKE THE OTHERS IS RAISING SIGNIFICANT REVENUES BUT IT WOULD INDEX THE VALUE OF AUTOS SUBJECT TO THE TAX SO THAT IN EFFECT IT HITS FOREIGN MODELS RATHER THAN US CAR MAKERS' LUXURY MODELS HALVING MR CLINTON'S PROPOSED TAX ON BARGEFUEL COSTS FOR TRAVEL ON INLAND WATERWAYS A MORE GENEROUS PROVISION THAN MR CLINTON PROPOSED FOR REALESTATE ENTREPRENEURS' PASSIVE LOSSES ON RENTAL INCOME UNLIKE THE PRESIDENT'S VERSION THE LOSSES COULD BE USED AGAINST INCOME FROM SOURCES OTHER THAN REAL ESTATE TO REDUCE THE TAXPAYER'S TAX LIABILITY TO OFFSET THE REVENUE LOST THE BILL WOULD EXTEND THE DEPRECIATION PERIOD FOR COMMERCIAL REAL ESTATE TO 39 YEARS FROM THE CURRENT 31 1/2 YEARS MR CLINTON HAD PROPOSED 37 YEARS EXPANSION OF MR CLINTON'S PROPOSED EMPOWERMENT ZONES IN DEPRESSED AREAS WHERE TAX INCENTIVES AND SOCIALSERVICE SPENDING WOULD BE USED TO ENTICE BUSINESSES TO INVEST A FREEZE ON MEDICARE INFLATION ADJUSTMENTS FOR HOSPITALS AND DOCTORS WHICH IS INTENDED TO SAVE 50 BILLION OVER FIVE YEARS THIS NONTAX PORTION OF THE COMMITTEE'S DEFICITREDUCTION BILL REPLACES MR CLINTON'S OWN MORE DETAILED IDEAS FOR SAVINGS EVEN SO IT'S CONSIDERED TEMPORARY PENDING MR CLINTON'S COMING INITIATIVE FOR CHANGES IN HEALTH CARE INCLUDING MEDICARE 9305140102 930514 WHO'S NEWS PAINEWEBBER GROUP INC PAINEWEBBER GROUP INC NEW YORK FRANK PL MINARD MANAGING DIRECTOR OF OPPENHEIMER CAPITAL LP WAS NAMED TO BE EXECUTIVE VICE PRESIDENT IN CHARGE OF INSTITUTIONALINVESTMENT MANAGEMENT MR MINARD 47 YEARS OLD WILL BE RESPONSIBLE FOR PAINEWEBBER'S MITCHELL HUTCHINS INSTITUTIONAL INVESTORS AND MITCHELL HUTCHINS INVESTMENT ADVISORY UNITS WHICH TOGETHER HAVE ABOUT 14 BILLION OF ASSETS UNDER MANAGEMENT IN ADDITION HE WILL BE CHAIRMAN OF THE FIRM'S NEWLY CREATED ASSET MANAGEMENT STRATEGY AND MARKETING COMMITTEE AND WILL ALSO BECOME A DIRECTOR OF PAINEWEBBER'S LONDONBASED MONEYMANAGEMENT JOINT VENTURE WITH JAPAN'S YASUDA MUTUAL LIFE INSURANCE CO WHILE AT OPPENHEIMER CAPITAL MR MINARD HELPED BUILD THAT FIRM'S ASSETS UNDER MANAGEMENT TO ABOUT 25 BILLION PAINEWEBBER SAID 9305140101 930514 NORWAY'S TRADE SURPLUS FOR APRIL OSLO NORWAY'S TRADE SURPLUS ROSE 46 TO 599 BILLION KRONER 8775 MILLION IN APRIL FROM A YEAR EARLIER THE NATIONAL STATISTICS AGENCY SAID THE INCREASE WAS LARGELY DUE TO HIGHER EXPORTS OF CRUDE OIL AND LOWER TOTAL IMPORTS THE AGENCY SAID 9305140099 930514 LETTERS TO THE EDITOR PROLONGING THE LIFE OF THE TERMINALLY ILL IN RESPONSE TO YOUR APRIL 22 PAGE ONE STORY DELICATE DECISIONS CLINTON'S HEALTH PLAN MUST FACE HUGE COSTS OF A PERSON'S LAST DAYS THE ARTICLE TALKS ABOUT OTHER PEOPLE'S FEELINGS ABOUT PROLONGING THE LIFE OF A TERMINALLY ILL LOVED ONE MORE IMPORTANTLY THE FEELING OF THE PATIENT SHOULD BE THE PARAMOUNT CONSIDERATION ASSUMING THE PATIENT HAS THE MENTAL CAPACITY TO DEAL WITH THE ISSUE FOR MANY YEARS MY MOTHER BATTLED RECURRENCES OF CANCER UNTIL HER DEATH IN 1991 AT AGE 74 DURING THESE YEARS HER FAITH THE STRENGTH OF HER SPIRIT AND THE SOUNDNESS OF HER DECISIONS KEPT OUR FAMILY TOGETHER WITH THE AID OF A CARING AND QUALITY ONCOLOGY STAFF AND THE SUPPORT OF HER FAMILY SHE WAS ABLE TO EXTEND HER LIFE FOR MANY YEARS AND ENJOY WHAT SHE CONSIDERED TO BE A GOOD QUALITY OF LIFE BUT AFTER ONE LUNG OPERATION A BLADDER REMOVAL AND NUMEROUS CHEMOTHERAPY TREATMENTS SHE SIMPLY HAD HAD ENOUGH IN HER LAST MONTHS THE CANCER HAD APPEARED IN HER LUNGS AGAIN AND IT WAS TIME FOR A DECISION HER DECISION WAS TO LET THE CANCER TAKE ITS COURSE AGAIN IT WASN'T OUR DECISION IT WAS HERS THE DIFFERENCE IS WE COMMUNICATED WITH EACH OTHER ALL ALONG AND THEREFORE WERE ABLE TO FULLY SUPPORT HER DECISION WITH OUR HEARTS AND OUR MINDS AS ONE IF I WERE TO MAKE ANY SUGGESTION TO FAMILIES OUT THERE IT IS THIS DON'T WAIT TO DISCUSS AND UNDERSTAND YOUR LOVED ONES' FEELINGS ABOUT PROLONGING THEIR LIVES IN THE CASE OF A TERMINAL ILLNESS UNTIL IT'S TOO LATE IT'S THEIR DECISION THAT COUNTS 9305140098 930514 BENSON EYECARE COMPLETES PACT NEW YORK BENSON EYECARE CORP SAID IT COMPLETED THE ACQUISITION OF SUPERIOR EYE CARE INC FORMERLY FRITSCH EYE CARE CENTER FOR ABOUT 5 MILLION IN UNREGISTERED STOCK THE SHARES WILL NOT BE REGISTERED AND ISSUED UNTIL THE AMERICAN STOCK EXCHANGE APPROVES THE SHAREFORSHARE EXCHANGE SUPERIOR EYE CARE HAS ANNUAL REVENUE OF ABOUT 10 MILLION AND MORE THAN 100 EMPLOYEES AS PART OF THE PURCHASE CHARLES D FRITSCH FOUNDER OF FRITSCH EYE CARE CENTER WILL BECOME A DIRECTOR ON THE BENSON EYECARE BOARD THE APPOINTMENT OF MR FRITSCH 53 YEARS OLD INCREASES THE BOARD'S SIZE TO SEVEN 9305140097 930514 MARKETING & MEDIA THREE TV STATIONS DEAL SETBACK TO ARSENIO HALL' NEW YORK THREE PARAMOUNT COMMUNICATIONS INCOWNED TELEVISION STATIONS WILL MOVE PARAMOUNT'S SYNDICATED LATENIGHT ARSENIO HALL SHOW TO LATER LESSDESIRABLE TIME PERIODS TO ACCOMMODATE A NEW SHOW FROM THE FOX NETWORK A UNIT OF NEWS CORP PARAMOUNTOWNED FOX AFFILIATES IN PHILADELPHIA SAN ANTONIO AND RALEIGH NC WILL MOVE ARSENIO IN JANUARY PARAMOUNT SAID TO ALLOW FOX'S NEW CHEVY CHASE SHOW TO RUN AT 11 PM EST THE SHOW STARTS SEPT 7 ARSENIO IS CARRIED AT VARYING LATENIGHT TIMES BY TV STATIONS USUALLY AT 11 OR 1130 PM EST THE PARAMOUNT STATIONS WOULD PROBABLY MOVE THE SHOW BACK TO MIDNIGHT SOME STATIONS THAT CARRY ARSENIO AT EARLIER TIMES AND HAVE BEEN LOBBIED HARD BY PARAMOUNT TO KEEP IT THAT WAY BECAUSE MORE VIEWERS ARE AVAILABLE SAID THE MOVE BY PARAMOUNT'S OWN STATIONS SENDS A BAD SIGNAL ARSENIO WHICH HAS BEEN RENEWED THROUGH JANUARY 1995 HAS BEEN SLIPPING IN THE RATINGS THIS SEASON BUT STEVE GOLDMAN PARAMOUNT DOMESTIC TELEVISION PRESIDENT WHO OVERSEES BOTH THE SYNDICATED SHOW AND THE STATION GROUP SAID THE MOVE IS NOT A SIGNAL IT'S A REALITY OF DOING BUSINESS FOX REQUIRES ITS AFFILIATES TO RUN PROGRAMS IN THEIR ASSIGNED TIME PERIOD AND WE ARE ABIDING BY OUR AGREEMENT WITH FOX MR GOLDMAN SAID 9305140096 930514 PEPPERAND SALT EVEN AFTER I'VE TOLD FRIENDS MY SCORE TV TECHNOLOGY OF THE '90S GIVES US MORE CHANNELS ON WHICH WE CAN SEE BETTER PICTURES OF RERUNS FROM THE '70S 9305140094 930514 WORLD MARKETS TOKYO PRICES END MIXED LONDON RALLY SPUTTERS FRANKFURT STOCKS RISE ON OUTLOOK FOR LOWER RATES A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCK PRICES FINISHED MIXED THURSDAY IN TECHNICALLY DRIVEN DEALINGS AHEAD OF THE MONTHLY SETTLEMENT OF INDEX OPTIONS LONDON EQUITIES ENDED AT THEIR LOWS IN A CORRECTION AFTER A RECENT RALLY BUT IN FRANKFURT DESPITE GRIM CORPORATE EARNINGS REPORTS SHARES ROSE ON PROSPECTS FOR MORE EASINGS OF EUROPEAN INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10450 DOWN 062 REFLECTING DECREASES IN MARKETS IN THE AMERICAS THE ASIA/PACIFIC REGION AND EUROPE PRECIOUSMETALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12894 UP 311 OR 247 WITH KIDSTON GOLD OF AUSTRALIA POSTING A 10 GAIN IN ITS LOCAL CURRENCY MEDICALSUPPLY STOCKS TRAILED AT 8157 DOWN 209 OR 250 WITH MDS HEALTH OF CANADA SLIDING 424 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLUMPED 32517 POINTS WEDNESDAY FELL 8242 TO 2053278 ON FRIDAY THE NIKKEI INDEX ROSE 9055 POINTS TO CLOSE THE MORNING SESSION AT 2062333 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 550 MILLION SHARES DOWN FROM 5724 MILLION SHARES ON WEDNESDAY GAINERS TOPPED LOSERS 548494 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 2689 POINTS WEDNESDAY ROSE 212 TO 161106 AS CAUTION REMAINED THE TOKYO MARKET'S WATCHWORD ARBITRAGERS WERE ACTIVE SELLERS FROM THE OPENING PUSHING THE NIKKEI DOWN TO ITS INTRADAY LOW OF 2045738 IN THE FIRST 20 MINUTES THE INDEX SPENT THE REST OF THE MORNING RECOVERING AS PUBLIC PENSION FUNDS AND OTHER INVESTMENT FUNDS BOUGHT ON THE MARKET'S WEAKNESS BUT IN THE AFTERNOON SELLERS RETURNED PRIMARILY ARBITRAGERS AS WELL AS OVERSEAS INVESTORS THAT SELLING TOPPLED THE NIKKEI FROM ITS SESSION HIGH OF 2078014 IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 115 POINTS TO 28493 DOWN SHARPLY FROM THE INTRADAY PEAK OF 28674 THE FT 30STOCK INDEX DROPPED 156 POINTS TO 22155 VOLUME WAS 7976 MILLION SHARES COMPARED WITH 7735 MILLION SHARES A DAY EARLIER INVESTORS PAUSED AFTER THIS WEEK'S RALLY THAT HAD LIFTED THE 100STOCK INDEX ALMOST 70 POINTS WEAKNESS IN THE STOCKINDEX FUTURES MARKET INFLUENCED STOCKEXCHANGE SENTIMENT AS A FURTHER SURGE IN THE PRICE OF GOLD LEFT INVESTORS WORRIED THAT MONEY WAS BEING DIVERTED FROM EQUITIES INTO THE GOLD MARKET AN EARLY SELLOFF ON WALL STREET COMPOUNDED LONDON STOCKS' DROP LATE IN THE SESSION DRIVING THE MAIN INDEX DOWN TO ITS LOWS IN THE FINAL MINUTES NONETHELESS LONDON STRATEGISTS WERE OPTIMISTIC THAT THE MARKET WOULD TURN BACK UP SOON INVESTORS CONTINUED TO PIN THEIR HOPES ON PROSPECTS FOR A REDUCTION IN GERMAN INTEREST RATES AFTER GERMANY'S CENTRAL BANK ON WEDNESDAY CUT A KEY MONEY MARKET RATE A GERMAN CUT IN KEY RATES WOULD MAKE IT EASIER FOR BRITAIN TO LOWER ITS BASE LENDING RATE IN FRANKFURT THE DAX 30STOCK INDEX ADDED 1033 POINTS TO 163979 NEAR THE SESSION'S HIGH OF 164159 PUSHING THE GAIN FOR THE WEEK TO 2787 POINTS SHARES WERE HELPED BY THE DOLLAR'S STRENGTH AND WEDNESDAY'S RALLY ON WALL STREET BUT THE POSITIVE TONE WAS SET MAINLY BY EXPECTATIONS OF LOWER INTEREST RATES IN EUROPE AND HOPES FOR A SUBSEQUENTLY FASTER EMERGENCE FROM RECESSION INDEED LATE IN THE SESSION FRANCE'S CENTRAL BANK CUT ITS TWO KEY RATES BY ONEFOURTH OF A PERCENTAGE POINT FOLLOWING SIMILAR MOVES A DAY EARLIER BY THE DUTCH BELGIAN AND AUSTRIAN CENTRAL BANKS BUT THE GERMAN CENTRAL BANK AFTER EASING ITS SECURITY REPURCHASE RATE INDICATED IT DIDN'T WANT LENDING RATES TO FALL TOO QUICKLY THOUGH FINANCIAL SHARES RESPONDED POSITIVELY TO THE REPO EASING PARIS STOCKS AIDED BY THE FRENCH LENDINGRATE CUTS ROSE FOR A SECOND DAY GIVING HOPE FOR A REBOUND FROM THE BEAR RUN THAT BRIEFLY ERASED ALL THE EXCHANGE'S GAINS FOR THE YEAR EARLIER THIS WEEK MILAN EQUITIES ROSE LED UP BY INDUSTRIAL BLUE CHIPS AND TELECOMMUNICATIONS STOCKS AS SENTIMENT WAS BOOSTED BY EXPECTATIONS OF A FURTHER DECLINE IN ITALIAN INTEREST RATES AFTER SEVERAL OTHER EUROPEAN COUNTRIES CUT RATES STOCKHOLM PRICES EASED ON PROFITTAKING ZURICH STOCKS FELL AS EARLY GAINS WERE ELIMINATED FOLLOWING WALL STREET'S EARLY DOWNTURN BRUSSELS SHARES CLIMBED BROADLY ON SPECULATIVE BUYING SYDNEY'S MAIN GAUGE AFTER A STRONG OPENING FELL ON NEWS THAT AUSTRALIAN EMPLOYMENT IN APRIL FELL TO ITS LOWEST LEVEL SINCE JULY 1991 THOUGH THE BROADER MARKET WAS HIGHER BUT HONG KONG SHARES POSTED A RECORD HIGH FOR THE SECOND SESSION IN A ROW BOOSTED BY THE SUCCESSFUL OUTCOME OF A SINOBRITISH MEETING ON THE COLONY'S LAND SALE PROGRAM THIS YEAR SINGAPORE STOCKS ALSO MOVED UP TO NEW HIGHS PROPELLED BY BROADBASED BUYING SPURRED BY CORPORATE DEALS IN CHINA SEOUL PRICES SHOT UP ON SPECULATION ABOUT IMPROVED RELATIONS WITH NORTH KOREA AND AN EASING OF THE SOUTH KOREAN GOVERNMENT'S ANTICORRUPTION DRIVE MANILA SHARES FELL AS THE MARKET CONTINUED ITS CORRECTION AMONG CORPORATE DEVELOPMENTS IN LONDON ROYAL DUTCH/SHELL GROUP ADVANCED 36 PENCE OR 22 TO 16685 PENCE 256 AND IN AMSTERDAM THE STOCK GAINED 440 GUILDERS OR 27 TO 16780 GUILDERS 9276 FIRSTQUARTER EARNINGS ON THE BASIS OF ESTIMATED CURRENT COST OF SUPPLIES WHICH EXCLUDES AFTERTAX INVENTORY HOLDING EFFECTS ROSE 12 TO 971 MILLION 149 BILLION FROM A YEAR EARLIER FOR WHICH RESULTS WERE RESTATED TO REFLECT AN ACCOUNTING CHANGE GRAND METROPOLITAN LOST 10 PENCE OR 23 TO 422 PENCE THE FOOD AND BEVERAGE COMPANY'S PRETAX PROFIT FOR THE SIX MONTHS ENDED MARCH 31 FELL 24 TO 417 MILLION AS THE COMPANY RESTATED ITS 1992 FINANCIAL ACCOUNTS GRAND METROPOLITAN SAID IT EXPECTS US AND BRITISH MARKETS TO CONTINUE IMPROVING GRADUALLY BUT WARNED THAT CONTINENTAL EUROPEAN MARKETS WILL INCREASINGLY BE HURT BY RECESSION IN FRANKFURT LUFTHANSA CLIMBED 2 MARKS OR 19 TO 105 MARKS 6512 THE AIRLINE'S GROUP NET LOSS FOR 1992 NARROWED TO 391 MILLION MARKS 2425 MILLION FROM A 1991 DEFICIT OF 444 MILLION MARKS BUT LUFTHANSA SAID IT ISN'T RECOVERING FAST ENOUGH TO ENSURE A RETURN TO PROFITABILITY THIS YEAR THOUGH COSTREDUCTION MEASURES ARE EXPECTED TO SHRINK THE ANNUAL LOSS FURTHER 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 9305140093 930514 BUSINESS BRIEF ARESSERONO SA SWISS FIRM SAYS NET FELL 62 IN QUARTER BECAUSE OF A GAIN THE SWISSBASED PHARMACEUTICALS COMPANY ARESSERONO SA SAID GROUP NET INCOME FOR THE FIRST QUARTER FELL 62 BECAUSE OF AN EXTRAORDINARY GAIN A YEAR EARLIER STEMMING FROM THE SALE OF ITS NONPRESCRIPTION DRUGS UNIT GROUP NET INCOME DROPPED TO 169 MILLION SWISS FRANCS 116 MILLION FROM 447 MILLION FRANCS IN THE YEAREARLIER PERIOD WHICH INCLUDED THE EXTRAORDINARY GAIN OF 281 MILLION FRANCS THE COMPANY SAID PROFIT FROM CONTINUING OPERATIONS MEANWHILE ROSE 18 TOTAL SALES DECLINED 88 TO 1806 MILLION FRANCS FROM 198 MILLION FRANCS THE COMPANY BLAMED THE DEVALUATION OF THE ITALIAN LIRA FOR THE LOWER SALES 9305140092 930514 SCANDALRIDDEN VANCOUVER EXCHANGE FACES AN INQUIRY BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL THE GOVERNMENT OF BRITISH COLUMBIA ANNOUNCED AN INVESTIGATION INTO THE SCANDALRIDDEN VANCOUVER STOCK EXCHANGE IN THE WAKE OF DEATH THREATS AGAINST A LOCAL STOCK MARKET REPORTER AND ON THE EVE OF AN ANNUAL AWARDS BANQUET FOR STOCK PROMOTERS THE BROAD INQUIRY BY THE CANADIAN PROVINCIAL GOVERNMENT WILL FOCUS ON A STOCK EXCHANGE DOGGED FOR YEARS BY EPISODES OF UNSEEMLY PENNYSTOCK PROMOTION THE INQUIRY DOESN'T APPEAR TO BE LIMITED TO THE LATEST CRAZE SWEEPING THE VANCOUVER EXCHANGE A FRENZY FOR DIAMOND MINING STOCKS BUT THE SPECULATIVE WAVE IN DIAMONDS SHOWS WHY THE VANCOUVER EXCHANGE HAS ACQUIRED AN UNSAVORY REPUTATION WHICH IT HAS BEEN TRYING TO SHAKE STRUCK BY DIAMOND FEVER HUNDREDS OF COMPANIES HAVE RUSHED NORTHWARD TO STAKE MINERAL CLAIMS ON MILLIONS OF ACRES OF CARIBOU PASTURE IN CANADA'S NORTHWEST TERRITORIES BACK IN VANCOUVER INVESTORS HAVE SENT THE PRICES OF COMPANIES INVOLVED IN THE DIAMOND RUSH SOARING BY AS MUCH AS 5000 IN THE PAST 12 MONTHS EVEN COMPANIES SUCH AS SLUMBERMAGIC ADJUSTABLE BED CO HAVE DECIDED TO BRANCH OUT INTO THE DIAMOND MINING BUSINESS GLEN CLARK THE PROVINCE'S FINANCE MINISTER SAID HE ORDERED THE INVESTIGATION AFTER INTERNATIONAL INVESTORS WITH WHOM HE WAS MEETING ASKED REPEATEDLY ABOUT THE VANCOUVER EXCHANGE'S TARNISHED REPUTATION IN FACT HE BELIEVES THE VANCOUVER EXCHANGE'S REPUTATION HINDERS THE PROVINCE'S ABILITY TO RAISE MONEY AND FIND BUYERS FOR ITS BOND ISSUES ABROAD MEANWHILE THE DIAMOND RUSH HAS TURNED 33 MILLION ACRES IN THE NORTHWEST TERRITORIES INTO SOME OF THE MOST EXPENSIVE REAL ESTATE ON EARTH THE STAMPEDE SHEDS LIGHT ON MANY OF THE CONCERNS THAT HAVE BEEN RAISED BY THE EXCHANGE'S CRITICS ONE CRUCIAL ISSUE IS THE ROLE OF PROMOTERS RETAINED TO GENERATE INTEREST IN STOCK ISSUED BY UNKNOWN COMPANIES SOMETIMES THESE FLEDGLING COMPANIES ARE BONA FIDE IN OTHER CASES AMAZING NEW TECHNOLOGIES OR PRODUCTS FAIL TO MATERIALIZE AND WITHIN MONTHS THE STOCK PRICES COLLAPSE THE LIST OF PEOPLE WHO HAVE CHECKERED PASTS AND ARE LINKED TO DIAMONDMINING STOCKS IS LONG SAYS ADRIAN DU PLESSIS A FORMER VANCOUVER FLOOR TRADER AND NOW A TOUGH CRITIC OF MANY OF ITS PRACTICES FOR EXAMPLE HE SAYS BEHIND KALAHARI RESOURCES IS ALBERT APPLEGATH REMEMBERED IN VANCOUVER AS THE PROMOTER OF NEW CINCH URANIUM A MINING COMPANY INVOLVED IN AN ASSAY SCANDAL A DECADE AGO AND JOHN DUPUIS A MAJOR SHAREHOLDER OF LYTTON MINERALS LTD HAS BEEN FINED BY REGULATORS FOR FAILURE TO DISCLOSE UNFAVORABLE NEWS AT ONE OF HIS PREVIOUS COMPANIES HE ALSO SERVED A PRISON TERM IN THE 1980S AFTER BEING CONVICTED OF CONSPIRACY TO TRAFFIC IN COCAINE A LAB OWNED BY MR DUPUIS EVALUATED LYTTON'S FIRST DIAMOND SAMPLES LYTTON AN EARLY FAVORITE IN THE DIAMOND RUSH SAW ITS MARKET VALUE SOAR TO A PEAK OF 500 MILLION CANADIAN DOLLARS US39215 MILLION RECENTLY FROM C68 MILLION A YEAR AGO BUT ALTHOUGH THE COMPANY HAS FOUND DIAMONDS THEY ARE OF RELATIVELY LOW GRADE AND THE LYTTON OFFICIALS HAVE FOUND THEMSELVES IN HOT WATER WITH REGULATORS FOR FAILING TO DISCLOSE THE SIZE OF THE SAMPLE IN WHICH THE STONES WERE FOUND AMONG OTHER THINGS LYTTON PRESIDENT DESMOND ALEXANDER SAID MR DUPUIS IS CONDUCTING GEOLOGICAL TESTS FOR THE COMPANY AND HASN'T ANY ROLE IN PROMOTING THE STOCK HE BLAMED A SENSATIONALISTIC PRESS FOR REVIVING MR DUPUIS' CRIMINAL CONVICTION ADDING WE CAN'T MONITOR PEOPLE'S SHAREHOLDINGS MR DUPUIS KALAHARI EXECUTIVES AND MR APPLEGATH COULDN'T BE REACHED THE DIAMOND RUSH IS JUST ANOTHER EXAMPLE OF THE AREA PLAY' WHERE ONE PERSON FINDS SOMETHING REAL AND THAT ALLOWS EVERYONE ELSE TO PROMOTE THEIR OWN STOCKS ON THE BACK OF THAT ONE DISCOVERY MR DU PLESSIS SAYS IT'S HARD FOR THE PUBLIC TO SEPARATE REALITY FROM FANTASY IN THESE TYPES OF PLAYS AT LEAST ONE OF THE DIAMOND COMPANIES DIAMET MINERALS LTD HAS MADE A FIND THAT MANY REPUTABLE ANALYSTS BELIEVE COULD RESULT IN A COMMERCIAL MINING OPERATION WITHIN A DECADE ANOTHER HALFDOZEN COMPANIES INCLUDING KETTLE RIVER RESOURCES LTD AND DENTONIA RESOURCES LTD ARE INVOLVED IN ANOTHER PROMISING PLAY BUT ANALYSTS SAY THE EASY MONEY IN THESE STOCKS HAS ALREADY BEEN MADE MOREOVER MOST OF THE WOULDBE DIAMOND MINERS WILL COME UP EMPTYHANDED SAYS ROBERT BISHOP A LAFAYETTE CALIF DIAMOND MINING ANALYST AND PUBLISHER OF THE GOLD MINING STOCK REPORT BY ALL OBJECTIVE CRITERIA PRICES ARE OVERHEATED RIGHT OUT OF LINE HE SAYS MOST OF THESE GUYS WILL JUST DISAPPEAR IN THE MEANTIME THE DIAMOND PLAY HAS WHIPPED UP SO MUCH ENTHUSIASM ON THE VANCOUVER EXCHANGE THAT DIAMOND COMPANIES WERE TO BE HONORED AT THIS YEAR'S HOWE STREET AWARDS GALA DINNER LAST NIGHT BROKERS INVESTORS AND PROMOTERS ASSEMBLED TO TOAST THE DIAMOND COMPANIES WITH WINES PRODUCED BY VANCOUVERLISTED COMPANIES AT A COST OF C165 A HEAD OR C300 A HEAD FOR THOSE WISHING TO SIT AT THE DIAMOND TABLES DIAMET WHOSE DISCOVERY TRIGGERED THE RUSH HAS SHUNNED THE DINNER AND A TWODAY DIAMOND MINING SYMPOSIUM PRECEDING IT ITS FOUNDER GEOLOGIST CHARLES FIPKE RAISED SEED MONEY FROM FAMILY FRIENDS AND LOCAL BUSINESSMEN IN HIS HOMETOWN OF KELOWNA BRITISH COLUMBIA AND LOOKS ASKANCE AT THE HYPE SURROUNDING DIAMOND STOCKS IN VANCOUVER THE FINANCE MINISTER MR CLARK SAYS THAT A SIXMONTH PROBE OF THE VANCOUVER EXCHANGE IS ENVISIONED AND THAT IT WON'T FOCUS ON SPECIFICS SUCH AS THE DIAMOND RUSH PUBLIC INPUT WILL BE SOUGHT THOUGH IT ISN'T CLEAR WHETHER THERE WILL BE ANY OPEN HEARINGS THE INQUIRY WILL BE HEADED BY BUSINESSMAN JAMES MATKIN INVESTORS WHO EXPECT MR MATKIN TO BE JUDGE AND JURY AND INVESTIGATE INDIVIDUAL SCANDALS WILL BE DISAPPOINTED MR CLARK WARNS MR MATKIN WILL HAVE SIX MONTHS TO REPORT BACK TO THE PROVINCIAL GOVERNMENT ON WHAT IF ANY MEASURES SHOULD BE TAKEN TO HELP CLEAN UP THE VANCOUVER EXCHANGE BUT JOHN WOODS EDITOR OF VANCOUVER STOCKWATCH AN INDUSTRY NEWSLETTER WARNS THAT SUCH AN APPROACH WON'T HELP THE INVESTIGATORS UNDERSTAND HOW THE VANCOUVER EXCHANGE WORKS IF THEY'RE ABLE TO PULL OFF A SMALL MIRACLE AND REALLY GET INTO SOME OF THE ISSUES AND AFFAIRS OF THE VSE ITS PROMOTERS AND ITS BROKERS THE PROBE COULD DO A LOT OF GOOD MR WOODS SAYS THAT'S A TALL ORDER HOWEVER AND THEY'LL NEED TO GET INPUT FROM OTHER THAN BROKERS AND EXCHANGE EXECUTIVES THE VANCOUVER EXCHANGE ITSELF SAYS IT WELCOMES THE PROVINCIAL GOVERNMENT'S DECISION TO TAKE AN INDEPENDENT LOOK AT THE REGULATORY FRAMEWORK OF THE VANCOUVER MARKETPLACE AND THE PROGRESS THAT HAS BEEN MADE TO DATE THE EXCHANGE HAS BEEN IN DISCUSSION WITH THE GOVERNMENT FOR SOME TIME ON THIS INITIATIVE AND SUPPORTS THE CHOICE OF MR MATKIN CLAYTON SCHULTZ EXECUTIVE VICE PRESIDENT OF THE EXCHANGE SAYS HE BELIEVES NUMEROUS REFORMS ARE ALREADY IN THE WORKS AND WE'RE CERTAINLY OPENMINDED ABOUT SUGGESTIONS FOR FURTHER IMPROVEMENT BUT THE SCANDALS ARE CERTAINLY THERE TO BE EXAMINED AN EXAMPLE THE MYSTERIOUS COLLAPSE OF PINERIDGE CAPITAL GROUP INC A MONEYLOSING HOLDING COMPANY IN WHICH OFFSHORE COMPANIES INCLUDING BRITISH PENSION FUNDS HAD INVESTED AND LOST MILLIONS OF DOLLARS AND NOT LONG AGO VANCOUVER POLICE BEGAN INVESTIGATING A TIP THAT A CONTRACT HAD BEEN TAKEN OUT LAST YEAR ON THE LIFE OF DAVID BAINES A VANCOUVER SUN COLUMNIST WHO IS LESS THAN POPULAR WITH LOCAL BROKERS AND PROMOTERS FOR HIS HARDHITTING INVESTIGATIONS OF NUMEROUS VANCOUVER EXCHANGE SCAMS THE EXCHANGE ITSELF OFFERED A C100000 REWARD FOR ANY INFORMATION LEADING TO THE ARREST OF THE PERSON RESPONSIBLE THE POLICE ARE CONVINCED THE DEATH THREATS WERE REAL BUT HAVE DROPPED THE INQUIRY TAMSIN CARLISLE CONTRIBUTED TO THIS ARTICLE 9305140091 930514 LEISURE & ARTS THE GALLERY A MUSEUM WITHIN A MUSEUM BY ROGER KIMBALL NEW YORK THE MOST SUMPTUOUS EXHIBITION HERE THIS SEASON IS WITHOUT A DOUBT SPLENDID LEGACY THE HAVEMEYER COLLECTION AT THE METROPOLITAN MUSEUM OF ART THIS EXTRAORDINARY PANOPLY OF ART AND DECORATION SOME 450 OBJECTS IS A STUNNING TESTAMENT TO THE TASTE AND GENEROSITY OF THE GREAT COLLECTORS LOUISINE W AND HENRY O HAVEMEYER THE SHOW BRINGS TOGETHER OBJECTS USUALLY DISPERSED THROUGHOUT THE MET SEIZING AN OPPORTUNITY CREATED BY THE CONSTRUCTION OF NEW 19THCENTURY GALLERIES WHERE MANY OF THE HAVEMEYER WORKS WILL BE REHUNG IN THE FALL THE SHOW ALSO INCLUDES SEVERAL IMPORTANT WORKS ONCE OWNED BY THE HAVEMEYERS THAT FOUND THEIR WAY INTO OTHER PUBLIC OR PRIVATE COLLECTIONS EDOUARD MANET'S GREAT GARE SAINTLAZARE 18721873 FROM THE NATIONAL GALLERY OF ART IN WASHINGTON DC IS ONE FAMILIAR EXAMPLE IMPRESSIONIST WORKS BY MONET COROT ET AL FROM THE SHELBURNE MUSEUM IN SHELBURNE VT WHICH WAS FOUNDED BY THE HAVEMEYERS' DAUGHTER ELECTRA ARE OTHERS DURING THEIR LIFETIMES HENRY DIED IN 1907 LOUISINE IN 1929 THE HAVEMEYERS GAVE THE MET WELL OVER 2000 WORKS OF ART INCLUDING SEVERAL HUNDRED JAPANESE TEXTILE FRAGMENTS AND 50 TIFFANY FAVRILE VASES IN 1888 HEARING THAT THE MET WISHED TO ACQUIRE ONE OF GILBERT STUART'S PORTRAITS OF GEORGE WASHINGTON HENRY PURCHASED THE PAINTING AND GAVE IT TO THE MUSEUM LOUISINE HAVEMEYER'S BEQUEST BROUGHT THE MUSEUM ANOTHER 2000 WORKS ALTOGETHER THE HAVEMEYERS GAVE THE MET SOME 4500 WORKS OF ART GENERALLY WITHOUT RESTRICTIONS THIS ALLOWED THE MUSEUM TO DISTRIBUTE THEM AMONG ITS VARIOUS GALLERIES ACCORDING TO WHATEVER HISTORICAL STYLISTIC OR NATIONAL SCHEME IT PLEASED THIS MUNIFICENT ACT WAS THE LEGACY OF A UNIQUELY ENLIGHTENED PARTNERSHIP BY THE TIME THEY WERE MARRIED IN 1883 LOUISINE AND HENRY WERE ALREADY BEGINNING TO BUY WORKS OF ART HE TOOK A CONSERVATIVE PATH ACQUIRING MOSTLY JAPANESE TEXTILES AND OLD MASTERS SHE STRUCK OUT MORE ADVENTUROUSLY AFTER MODERN FRENCH PAINTERS IN THE FOLLOWING DECADES THEY ASSEMBLED EXQUISITE 17THCENTURY JAPANESE SCREENS SOME OF WHICH ARE ON VIEW HERE SYRIAN CERAMICS GREEK AND ROMAN ANTIQUITIES OLD MASTER PAINTINGS REMBRANDT HALS CRANACH DE HOOCH INGRES SCORES OF PRINTS DRAWINGS SCULPTURES AND ONE OF THE FINEST COLLECTIONS OF MODERN FRENCH PAINTINGS ANYWHERE INDEED IF THE MET IS CONSIDERED ONE OF THE TWO OR THREE GREATEST REPOSITORIES OF LATE19THCENTURY FRENCH PAINTING IN THE WORLD IT IS LARGELY BECAUSE THE HAVEMEYER BEQUEST FORMED THE CENTRAL CORE OF THAT COLLECTION ALTOGETHER THE HAVEMEYERS OWNED SOME 70 WORKS BY EDGAR DEGAS INCLUDING BRONZES PRINTS AND SOME OF HIS GREATEST PAINTINGS 25 BY CAMILLE COROT MOSTLY FIGURE PAINTINGS SCORES OF MANETS IMPORTANT WORKS BY CEZANNE RENOIR DELACROIX MONET PISSARRO AND THE BARBIZON SCHOOL THEY ALSO AND THIS WAS ESPECIALLY DARING AT THE TIME OWNED MANY NUDES BY GUSTAVE COURBET INCLUDING THE GREAT EROTICALLY CHARGED WOMAN WITH A PARROT 1866 AND THE WOMAN IN THE WAVES 1866 HENRY HAVEMEYER'S ENORMOUS FORTUNE MADE COLLECTING ON THIS SCALE POSSIBLE NICKNAMED THE SUGAR KING HE CREATED THE SUGAR TRUST IN THE LATE 19TH CENTURY IN ITS FIRST TWO YEARS IT POSTED PROFITS OF 25 MILLION THAT BOUGHT A LOT OF ART IN THE PREIRS DAYS OF THE 1880S SUGAR ALSO BUILT THE HAVEMEYERS' LAVISH HOUSE ON FIFTH AVENUE AT 66TH STREET THEIR MANSION WAS FURNISHED AND DECORATED BY LOUIS COMFORT TIFFANY AND SAMUEL COLEMAN A CLOSE FRIEND OF HENRY'S THE HOUSE WAS RAZED IN 1930 BUT A SELECTION OF OBJECTS SALVAGED FROM THE WRECKMOSAIC PANELS ELABORATE IRONWORK GLASSWORK AND OTHER APPOINTMENTSIS IN THE EXHIBITION THE DRIVING FORCE OR AT LEAST THE INITIAL CATALYST BEHIND THE HAVEMEYERS' ACQUISITION OF SO MUCH MODERN FRENCH ART WAS LOUISINE'S CLOSE FRIEND THE AMERICAN IMPRESSIONIST PAINTER MARY CASSATT LOUISINE CALLED HER THE GUIDE AND INSPIRATION THE FAIRY GODMOTHER OF HER COLLECTION CASSATT TOOK THE FUTURE MRS HAVEMEYER TO HER FIRST EXHIBITION OF COURBET'S WORK IN 1881 SHE ALSO LED HER TO BECOME DEGAS'S FIRST AMERICAN PATRON LOUISINE LATER SAID IT TAKES A SPECIAL BRAIN CELL TO UNDERSTAND DEGAS BOTH SHE AND CASSATT POSSESSED THE REQUISITE CELL THE DEGAS PAINTINGS THAT THE HAVEMEYERS GAVE THE MET ARE AMONG HIS BESTKNOWN MOST BEAUTIFUL WORKS INCLUDING WOMAN SEATED BESIDE A VASE OF FLOWERS 1865 DANCERS PRACTICING AT THE BAR 18761877 AND WOMAN HAVING HER HAIR COMBED 18861888 NO LESS EXTRAORDINARY ARE THE OLD MASTERS ON VIEW HERE THE HAVEMEYERS BOUGHT SOME OF EL GRECO'S VERY BEST WORKS NOTABLY PORTRAIT OF A CARDINAL CIRCA 1600 THE BLEACHED ACID REDS OF THE CARDINAL'S SILK ROBE SHIMMER LIKE AN ELECTRIC CHARGE ACROSS THE SURFACE OF THE CANVAS WHILE HIS PIERCING BESPECTACLED GAZE SEEMS TO WEIGH THE VIEWER IN SOME ULTIMATE BALANCE THE HAVEMEYERS ALSO BOUGHT PAINTINGS BY INGRES AND BRONZINO AND EIGHT PORTRAITS THEN ATTRIBUTED TO REMBRANDT MODERN SCHOLARSHIP HAS REASSIGNED FIVE TO OTHER ARTISTS SIMILAR REATTRIBUTIONS HAVE AFFECTED THE HAVEMEYERS' HOLDINGS IN ASIAN ART AND MANY OF THE PAINTINGS THEY THOUGHT WERE GOYAS BUT THREE OF THEIR REMBRANDTS HAVE SURVIVED EXPERT SCRUTINY INCLUDING THE MESMERIZING PORTRAIT OF HERMAN DOOMER ANOTHER PAINTING THAT SEEMS CORRECTLY ATTRIBUTED IS THE EARLY16THCENTURY PORTRAIT OF A MAN WITH A ROSARY BY LUCAS CRANACH THE ELDER IT IS A HAUNTING PORTRAIT COMBINING GREAT HUMANITY EVEN EARTHINESS WITH AN INTENSE PIETY FOR SOME VIEWERS THE EARTHINESS APPARENTLY PREDOMINATES ON ONE OF MY VISITS TO THE SHOW I OVERHEARD TWO ELDERLY WOMEN DISCUSSING THE PICTURE HE'S DISSOLUTE DISSOLUTE ONE HISSED TO HER COMPANION HE'S OBVIOUSLY A DRUNKARD MAYBE SO BUT IT'S A FABULOUS PICTURE NONETHELESS SEE FOR YOURSELF A SPLENDID LEGACY IS UP UNTIL JUNE 20 IT IS ACCOMPANIED BY A CATALOG 65 HARDCOVER 45 PAPER FEATURING MANY COLOR PRINTS AND EXCELLENT ESSAYS BY MET CURATOR GARY TINTEROW AND OTHERS 9305140090 930514 TRACKING TRAVEL BY JONATHAN DAHL THIS SUMMER COULD BE ONE OF THE TOUGHEST FOR FREQUENT FLIERS TRYING TO CASH IN AWARDS AS MANY AS 8 OF ALL SEATS THIS SUMMER ON SOME CARRIERS WILL BE TAKEN UP BY PEOPLE FLYING FOR FREE TWICE THE PERCENTAGE OF LAST SUMMER ACCORDING TO INSIDEFLYER MAGAZINE COLORADO SPRINGS COLO SOME OF THIS INCREASE REFLECTS THE EXPECTATION THAT THE FARE WARS OF LAST SUMMER WON'T BE AS INTENSE THIS YEAR SO PLANES WILL HAVE MORE OPEN SEATS BUT FREQUENT FLIERS WILL NONETHELESS FIND THEMSELVES FIGHTING WITH ONE ANOTHER BECAUSE FINANCIALLY SQUEEZED AIRLINES HAVE LIMITED FREE TRAVEL SEATS ON POPULAR FLIGHTS DELTA AIR LINES SAYS FREE TRIPS ON SOME POPULAR ROUTES SUCH AS ATLANTA TO LOS ANGELES ON FRIDAYS IN JUNE MAY ALREADY BE BOOKED UP BUT THE AIRLINE ALSO SAYS PEOPLE WITH FLEXIBLE SCHEDULES HAVE MANY OPTIONS THERE'S ALREADY PRESSURE ON TRAVELERS BECAUSE SOME AWARDS EXPIRE AT THE END OF THIS YEAR PEOPLE WHO ARE FREE TO TRAVEL ONLY IN THE NEXT FEW MONTHS COULD EASILY END UP NEVER USING THOSE AWARDS EVERY YEAR IT GETS HARDER AND HARDER TO USE YOUR AWARD SAYS RANDY PETERSEN EDITOR OF INSIDEFLYER MR PETERSEN SUGGESTS THAT TRAVELERS TRY TO USE FREE TRIPS ON LESSPOPULAR NONSTOP FLIGHTS OR FLIGHTS DURING THE MIDDLE OF THE WEEK HE SAYS SOME EAST COAST RESIDENTS TRY BACKTRACKING THEY MAY WANT TO FLY FROM NEW YORK TO LONDON BUT FIND THAT FREE SEATS FOR THAT ROUTE ARE BOOKED SO THEY FLY FIRST TO OTHER CITIES SUCH AS ATLANTA CHICAGO OR ST LOUIS EVEN IF THEY HAVE TO USE THEIR OWN MONEY TO GET THERE BEFORE HEADING ON TO LONDON IN THEIR FREE SEATS ONE OTHER TIP AIRLINES CONSTANTLY CHANGE THE NUMBER OF SEATS THEY ALLOCATE FOR AWARDS TRAVELERS CAN SOMETIMES BE PUT ON A WAITING LIST OR CAN KEEP CALLING BACK BUSINESS FLIERS SURPRISINGLY ALMOST NEVER PAY FULL PUBLISHED FARES ANYMORE BUT AIRLINES ARE FINDING WAYS TO KEEP BUSINESS FARES UP ONLY 2 OF BUSINESS TRAVELERS PAY PUBLISHED FULL COACH FARES ACCORDING TO A SURVEY OF MORE THAN 1000 COMPANIES BY TOPAZ ENTERPRISES A FARE AUDITING SYSTEM IN PORTLAND ORE TWO YEARS AGO ABOUT 18 OF BUSINESS TRAVELERS PAID FULL FARE THE DROP RESULTS PARTLY FROM SPECIAL DISCOUNTS THAT MAJOR CORPORATIONS HAVE WORKED OUT OVER THE YEARS ONETHIRD OF ALL BIG COMPANIES NOW HAVE THESE DEALS MORE COMPANIES ALSO DEMAND THAT THEIR EMPLOYEES BOOK EARLY TO GET BETTER DEALS BUT AIRLINE OFFICIALS SAY PRIVATELY THAT THEY OFTEN USE NEW NAMES FOR OLD FULL FARES TO KEEP BUSINESS PRICES UP THEY HAVE DONE THIS MAINLY BY RAISING THE PUBLISHED FARES TO ASTRONOMICAL LEVELS AND THEN CREATING COACH FARES THAT ARE MORE IN LINE WITH THE OLD PUBLISHED FULL FARE FOR EXAMPLE THE PUBLISHED FULL COACH FARE FROM NEW YORK TO PORTLAND HAS BEEN RAISED TO 990 ONE WAY BUT TRAVELERS WHO ARRIVE AT AN AIRLINE COUNTER WITH NO RESERVATIONS ARE TYPICALLY OFFERED A DISCOUNTED COACH FARE OF 650 ONE WAY SIMILARLY THE PUBLISHED FULL COACH FARE ONE WAY FROM CINCINNATI TO NEW YORK IS 510 BUT THE DISCOUNTED COACH RATE IS 330 ONE WAY TRAVEL ANALYSTS SAY AIRLINES HAVE DONE THIS PARTLY OUT OF NECESSITY EVEN BUSINESS TRAVELERS NOW EXPECT A DISCOUNT SO MUCH THAT AIRLINES MUST CREATE AT LEAST THE APPEARANCE OF ONE AS IN MANY INDUSTRIES IN AMERICA CONSUMERS JUST WON'T PAY FULL PRICE OR AT LEAST WON'T PAY WHAT THEY THINK IS FULL PRICE SAYS JEANIE THOMPSONSMITH PRESIDENT OF TOPAZ ENTERPRISES THEY HAVE TO SEE A SALE BIG BUSINESS MAY BE MISSING A CHANCE TO SAVE ON TRAVEL IN THE PAST 18 MONTHS A DOZEN SMALL CUTRATE AIRLINES HAVE POPPED UP ONE NEWCOMER SKYBUS HAS A 79 ONEWAY FARE FROM NEWARK NJ TO FORT LAUDERDALE FLA ANOTHER KIWI INTERNATIONAL AIR LINES OFFERS A 119 ONEWAY DEAL BETWEEN CHICAGO AND ORLANDO FLA MOST OF THE UPSTARTS HAVE FEW OR NONE OF THE RESTRICTIONS THAT MAJOR AIRLINES IMPOSE ON BUSINESS TRAVELERS YET MOST OF THE NEWCOMERS ARE GETTING A COLD SHOULDER FROM BIG COMPANIES MANAGEMENT ALTERNATIVES A CORPORATE TRAVEL CONSULTANT IN STAMFORD CONN SAYS ITS 100 MAJOR CORPORATE CLIENTS USE THEM BARELY OR NOT AT ALL THE LARGE COMPANIES HAVE ALWAY BEEN SLOW TO MOVE INTO NEW THINGS LIKE THIS SAYS HAROLD SELIGMAN THE FIRM'S PRESIDENT YOU'D THINK IF A COMPANY IS REALLY TRYING TO CONTROL COSTS THEY WOULD SEEK ALTERNATIVES SAYS A SPOKESMAN FOR NEWARKBASED KIWI CORPORATE TRAVEL MANAGERS SAY TOO MANY PAST STARTUPS HAVE FAILED LEAVING THE MANAGERS UNABLE TO RESUME CORPORATE DEALS WITH MAJOR AIRLINES YOU DON'T WANT TO SEVER YOUR TIES WITH THE MAJOR AIRLINE AND THEN BE LEFT WITH NO DEALS SAYS JOHN HINTZ PRESIDENT OF THE NATIONAL BUSINESS TRAVEL ASSOCIATION WHICH REPRESENTS CORPORATE TRAVEL MANAGERS MORE IMPORTANT THE STARTUPS' SCHEDULES ARE STILL TOO LIMITED TO MEET THE NEEDS OF MANY CORPORATE TRAVELERS THEIR LACK OF FREQUENTFLIER PLANS MAKES THEM EVEN LESS ATTRACTIVE TO EMPLOYEES AND SOME TINY CARRIERS ARE HARD TO REACH BY TELEPHONE OR AREN'T HOOKED UP WITH TRAVEL AGENCIES ON WHICH MOST BIG COMPANIES RELY AND TO BE BLUNT MR HINTZ ADDS SOME STARTUPS ATTRACT LESSTHANDESIRABLE LEISURE CUSTOMERS THE KIND MANY BUSINESSPEOPLE SAW DURING LAST SUMMER'S FARE WARS THAT REALLY SHOWED THAT SOME PEOPLE SHOULD TAKE THE BUS HE SAYS IT WAS GROSS AUTO VACATION TRAFFIC SHOULD RISE 4 THIS SUMMER FROM A YEAR EARLIER ACCORDING TO TRAVEL INDUSTRY INDICATORS A MIAMI NEWSLETTER THAT WOULD BE THE BUSIEST SUMMER FOR ROAD TRAVELERS WHO MAKE UP THE VAST MAJORITY OF SUMMER TRAVELERS SINCE 1990 ABOUT 30 OF CORPORATE TRAVEL MANAGERS SAY HIDDENCITY FARES ARE ETHICAL THOUGH MANY AIRLINES DISLIKE THEM HIDDENCITY FARES INVOLVE BUYING TICKETS TO A DISTANT CHEAPER DESTINATION AND GETTING OFF AT AN EARLIER STOP ABOUT 19 OF TRAVEL MANAGERS USE THEM ACCORDING TO A SURVEY BY CORPORATE TRAVEL MAGAZINE 9305140089 930514 LEISURE & ARTS BOOKSHELF HOW THE US BETRAYED THE HMONG BY C DENNISON LANE EVEN TODAY LITTLE IS KNOWN ABOUT THE HMONG MOUNTAIN PEOPLE WHO FOUGHT WITH THE US IN LAOS DURING THE VIETNAM WAR ONLY TO BE TRAGICALLY ABANDONED AT THE DEBACLE'S END IN LAOS THE COMMUNIST GOVERNMENT'S PERSECUTION CONTINUES UNABATED WHILE IN THE FETID REFUGEE CAMPS OF THAILAND TO WHICH THOUSANDS FLED MANY NOW FACE OFTEN BRUTAL REPATRIATION AND AN UNCERTAIN FUTURE THEIR STORY IS TOLD IN TRAGIC MOUNTAINS THE HMONG THE AMERICANS AND THE SECRET WARS FOR LAOS 19421992 INDIANA UNIVERSITY PRESS 580 PAGES 2995 BY JANE HAMILTONMERRITT A FREELANCE PHOTOGRAPHER AND JOURNALIST WHO COVERED THE WAR IN INDOCHINA AND HAS STRUGGLED TO PUBLICIZE THE PLIGHT OF THE HMONG OVER THE DECADES REPORTED FOR MORE THAN 10 YEARS TRAGIC MOUNTAINS IS A COMPELLING IF OVERLY LENGTHY NARRATIVE THAT MIXES THE HISTORY OF THIS TROUBLED REGION WITH THE LIVES OF KINGS AND GENERALS MAJOR AND MINOR PLAYERS INCLUDING THE SOCALLED LITTLE GUYS AS THE AMERICAN PILOTS IN LAOS OFTEN CALLED THE SHORT HMONG WHO FOUGHT WITH THEM IN THE SECRET WAR LAOS'S FATE PROVED IMPOSSIBLE TO SEVER FROM VIETNAM'S AS NORTH VIETNAMESE SOLDIERS SPILLED OVER THE BORDER TO PROTECT HANOI'S SUPPLY ROUTES INTO SOUTH VIETNAM AND THEIR VIET CONG BRETHREN AN ANCIENT PEOPLE WITH ORIGINS IN CHINA THE HMONG MIGRATED TO LAOS'S MOUNTAIN RANGES WHERE THEY CLUNG TO THEIR CUSTOMS LANGUAGE AND INDEPENDENCE FIERCELY ANTICOMMUNIST FEARFUL OF THE CHINESE AND VIETNAMESE THEY WERE ONLY TOO HAPPY TO LINK THEIR DESTINY TO THE AMERICANS AND MORE THAN ANY OTHER IRREGULAR MILITARY ORGANIZATION DRAWN INTO THE QUAGMIRE OF THE INDOCHINESE WAR THE HMONG PAID AN APPALLING PRICE BOTH IN TERMS OF DEATH AND SOCIAL UPHEAVAL MANY DOWNED AMERICAN FLIERS OWE THEIR LIVES TO HMONG WHO DRAGGED THEM TO SAFETY IN THE MOUNTAINS THEY KNEW SO WELL A NAIVE PEOPLE THEY BELIEVED BOTH IN THE AMERICANS AND IN THE US COMMITMENT MS HAMILTONMERRITT WHO SPENT MANY HARROWING MONTHS IN THAI CAMPS DESCRIBES THE TOTAL BAFFLEMENT OF THE HMONG WHEN THEY LEARNED FROM AID WORKERS THAT THE US HAD ITS SHARE OF VIET CONG ADMIRERS TRAGIC MOUNTAINS IS A BOOK ABOUT THE BETRAYAL OF A PEOPLE EVEN IF THE WAR IN LAOS LIKE THAT IN VIETNAM WAS A STRATEGIC ILLUSION TRAGIC MOUNTAINS MAKES IT CLEAR THAT A MUCH BETTER CASE COULD BE MADE FOR FOREIGN INVASION AMERICA'S COMMITMENT TO THE CAUSE OF AN INDEPENDENT LAOS AND THE ESTABLISHMENT OF AN AUTONOMOUS REGION FOR THE HMONG UNDER THE AEGIS OF THE ROYAL LAO GOVERNMENT WAS EASIER TO SUSTAIN TO THE VERY END THAN THE WAR IN NEIGHBORING VIETNAM AND CAMBODIA BUT THEN THE POLICY COLLAPSED AND THE HMONG WERE LEFT STANDING ON THE TARMAC THE AUTHOR'S DESCRIPTION OF THE HMONG CROWDING ONTO SMALL EVACUATION PLANES THAT COULD CARRY ONLY A FEW OF THEM IS HEARTBREAKING OVER THE YEARS MANY HMONG WERE BROUGHT TO THE US BUT THOUSANDS MORE BEGAN THE LONG AND PAINFUL EXODUS TO THAILAND THOSE WHO REMAINED BEHIND WERE OFTEN SUMMARILY EXECUTED BY THE PATHET LAO OR PUNISHED IN REEDUCATION CAMPS RIGHT AT THE START OF HER BOOK MS HAMILTONMERRITT GIVES A HORRIFYING DESCRIPTION OF A CLUMP OF FRIGHTENED HMONG PREVENTED BY THE THAIS FROM LEAVING A TINY ISLAND IN THE MEKONG RIVER FINALLY AS THE WATERS RISE LAOTIAN SOLDIERS BUTCHER THEM DID THE LAOTIAN GOVERNMENT ALSO TRY TO EXTERMINATE THE HMONG WITH YELLOW RAIN IN THE YEARS FOLLOWING THE HASTY DEPARTURE OF THE AMERICANS FROM LAOS AND ITS TAKEOVER BY THE COMMUNISTS LARGE NUMBERS OF HMONG DESCRIBED SEEING LOWFLYING AIRPLANES DROP A YELLOWISH SUBSTANCE THAT PROVOKED SEVERE HEMMORHAGING AND OFTEN DEATH MS HAMILTONMERRITT BELIEVES THAT THE LAOTIAN GOVERNMENT AIDED BY HANOI AND MOSCOW WAS USING BIOCHEMICAL MYCOTOXINS TO PUNISH THE REBELLIOUS HMONG FOR FIGHTING ON THE SIDE OF THE AMERICANS YELLOW RAIN SOON BECAME A SUBJECT ON WHICH THERE WAS AND REMAINS LITTLE NEUTRALITY THE HARVARD BIOCHEMISTRY PROFESSOR MATTHEW MESELSON FOR EXAMPLE HAS ADVANCED THE NOVEL THEORY THAT BIG SWARMS OF BEES REGULARLY DEFECATED ON THESE PEASANTS AND NOBODY ELSE JERRY DANIELS A CENTRAL FIGURE IN TRAGIC MOUNTAINS WHO WAS CLOSER TO THE HMONG THAN VIRTUALLY ANYONE ELSE DISCOUNTED YELLOW RAIN UNTIL HIS DEATH THOUGH MS HAMILTONMERRITT DOESN'T MAKE THIS CLEAR THE FACT REMAINS THAT NO CANISTER FOR DISPENSING THE POISON WAS EVER FOUND THOUGH BETWEEN 1979 AND 1986 THE US GOVERNMENT DID RECOVER SOME 80 ENVIRONMENTAL SAMPLES FROM LAOS AND CAMBODIA UNFORTUNATELY BECAUSE OF BUREAUCRATIC INFIGHTING IN WASHINGTON ONLY SIX SAMPLES WERE ANALYZED ALL SIX TESTED POSITIVE FOR THE PRESENCE OF TRICHOTHECENES ALTHOUGH TRAGIC MOUNTAINS SUFFERS TO SOME EXTENT FROM A LACK OF EDITING IT IS NEVERTHELESS AN ABSORBING BOOK THAT WILL APPEAL TO ANYONE WITH AN INTEREST IN THE SECRET WAR IN LAOS AND IN THE HMONG MR LANE IS A FORMER ARMY OFFICER WITH EXTENSIVE SERVICE IN ASIA AND INDOCHINA INCLUDING BANGKOK 9305140088 930514 MARKETING & MEDIA ADVERTISING ABC'S GRITTY NEW NYPD BLUE' IS SHAPING UP AS A TOUGH SELL BY KEVIN GOLDMAN THE TELEVISION NETWORKS HAVEN'T STARTED OFFICIALLY PEDDLING THEIR NEW PRIMETIME SERIES TO ADVERTISERS BUT ONE SHOW IS SHAPING UP AS THE ALLTIME HARDSELL FROM MADISON AVENUE'S STANDPOINT ADVERTISERS ATTENDING THE THREEHOUR PRESENTATION AT NEW YORK'S CARNEGIE HALL HAD BEEN ALERTED THAT THE SHOW WOULD BE RACY MR BOCHCO HAD TRIED TO PERSUADE THE NETWORK TO LET HIM PRODUCE WHAT HE DESCRIBED AS AN RRATED SERIES THEN AGREED TO TONE IT DOWN TO THE TV EQUIVALENT OF PG13 BUT AS THE 10MINUTE PREVIEW OF NYPD BLUE UNSPOOLED ADVERTISERS BEGAN WHISPERING AND TITTERING WHAT WAS UP IN THE SCREEN IN LANGUAGE AND CONTENT WAS LIKE NOTHING EVER SEEN FROM A MAJOR TELEVISION BROADCAST NETWORK THOUGH NETWORK TELEVISION HAS BEEN PUSHING THE ENVELOPE FURTHER AND FURTHER ON STANDARDS FOR PRIMETIME PROGRAMMING THE NYPD BLUE CLIP HAD EVERYTHING TO MAKE ADVERTISERS UNCOMFORTABLE STRONG LANGUAGE THERE WAS A THREELETTER SLANG TERM FOR A BREAST GRAPHIC VIOLENCE ONE OF THE SERIES' STARS DENNIS FRANZ GETS SHOT FOUR TIMES AFTER BEING SET UP BY A PROSTITUTE AND PARTIAL NUDITY ONE OF THE LEAD CHARACTERS UNDRESSES HIS GIRLFRIEND DOWN TO SEXY UNDERWEAR BEFORE SHE STRADDLES HIM IT LOOKS LIKE A GOOD SHOW BUT YES IT'S GOING TO BE A MAJOR PROBLEM TO SELL TO ADVERTISERS BECAUSE IT IS SIMPLY TOO ROUGH SAYS MICHAEL DREXLER EXECUTIVE VICE PRESIDENT WORLDWIDE MEDIA DIRECTOR AT BOZELL JOEL M SEGAL EXECUTIVE VICE PRESIDENT OF INTERPUBLIC GROUP'S MCCANNERICKSON AGREES I'M PREPARED FOR THE SHOW TO BE SOMETHING IN EXCESS OF THE CURRENT NORM BUT I DOUBT A MAJORITY OF MAINSTREAM ADVERTISERS WILL BE INTERESTED IN THIS SHOW IT IS A GROWING QUANDARY FOR BROADCAST TELEVISION FOR YEARS THE NETWORKS ADHERED TO SOCALLED COMMUNITY STANDARDS AND RARELY TESTED THE LIMITS OF ACCEPTABLE CONTENT BUT THE NETWORKS HAVE INCREASINGLY WATCHED THEIR AUDIENCES ERODE BOTH TO INDEPENDENT TV STATIONS AND TO CABLE NETWORKS THE LATTER OFFERING UNCUT RRATED FILMS AND RACY TV SERIES WITH UNCENSORED LANGUAGE AND NUDITY MEANWHILE CREATIVE POWERHOUSES SUCH AS MR BOCHCO WHO COCREATED SUCH DRAMATIC HITS AS HILL STREET BLUES AND LA LAW CHAFED UNDER NETWORK STANDARDS AND PRACTICES IN THE PAST MR BOCHCO SAID HE WANTED TO PRODUCE AN RRATED SERIES AND PROMOTE IT AS SUCH LET THOSE ADVERTISERS AFRAID OF IT STAY AWAY HE FIGURED PREDICTING THAT SPONSORS WOULD BE LINING UP ONCE THE SHOW BECAME A HIT YET THE LAST TIME MR BOCHCO FLAUNTED HIS DISDAIN FOR RESTRICTIONS ADVERTISERS BY AND LARGE STAYED AWAY ALTHOUGH ABC INSISTS THAT NO ADVERTISER DROPPED OUT OF A SEPTEMBER 1992 EPISODE OF MR BOCHCO'S SERIES CIVIL WARS IN WHICH COSTAR MARIEL HEMINGWAY POSED NUDE FOR A PHOTOGRAPHER SHE COVERED HER BREASTS WITH HER HANDS NOT MANY OF ITS REGULAR ADVERTISERS SIGNED UP EITHER THE ONEHOUR SHOW HAD AN UNUSUAL NUMBER OF PUBLIC SERVICE ANNOUNCEMENTS AND PAID COMMERCIALS FOR MOTION PICTURES MADISON AVENUE EXECUTIVES SAY THAT NYPD BLUE WILL CERTAINLY BE OFF THE BUY LIST FOR PACKAGEDGOODS COMPANIES FASTFOOD CHAINS AND OTHER ADVERTISERS THAT TRY TO CONVEY A FAMILYORIENTED IMAGE HOWEVER THE SHOW IS PERFECT FOR ADULTORIENTED PRODUCTS SUCH AS BEER AND AUTOMOBILES SAYS STEVE AUERBACH EXECUTIVE VICE PRESIDENT AND DIRECTOR OF NATIONAL BROADCAST AT DEWITT MEDIA A MEDIA BUYING SERVICE AND SOURCES SAY PRIVATELY MOVIE COMPANIES WILL BE TARGETED AS POTENTIAL ADVERTISERS ABC ENTERTAINMENT PRESIDENT TED HARBERT URGED ADVERTISERS ATTENDING THE PRESENTATION TO WAIT UNTIL THE FULL ONEHOUR PILOT WAS MADE AVAILABLE TO THEM IN JUNE AN ABC SPOKESMAN SAID AS WITH ANY PROGRAM WE RESPECT ADVERTISER CONCERN OVER CONTENT ISSUES WHILE IT IS EARLY WE FEEL THAT WHAT MATTERS TO ADVERTISERS IS PERFORMANCE AND HISTORY HAS SHOWN IF THE RATINGS ARE GOOD THEN ADVERTISERS ARE LESS LIKELY TO HAVE CONCERN ABOUT CONTENT THE NETWORK HAS A POINT EARLIER THIS YEAR NINE OF 10 ADVERTISERS PULLED OUT OF A SEINFELD EPISODE ON NBC THAT DEALT WITH MASTURBATION ALTHOUGH THE WORD WAS NEVER MENTIONED BUT THE SHOW WHICH RECEIVED STRONG REVIEWS WENT FROM BEING CONTROVERSIAL TO AN INSTANT CLASSIC WHEN THE EPISODE WAS REPEATED IT QUICKLY SOLD OUT NEVERTHELESS ADVERTISERS ARE MORE SQUEAMISH WHEN IT COMES TO VIOLENT DRAMA SPICED WITH SEX THAN WHAT IS PERCEIVED AS HARMLESS SOPHOMORIC COMEDY SOME FOUND IT CURIOUS THAT NYPD BLUE WAS INCLUDED ON THE FALL SCHEDULE AND NOT AS A MIDSEASON REPLACEMENT ABC IS A NETWORK THAT POSITIONED ITSELF AS A ADVERTISERFRIENDLY NETWORK SAYS BETSY FRANK SENIOR VICE PRESIDENT AND DIRECTOR OF TELEVISION INFORMATION AT SAATCHI & SAATCHI CO PLC'S SAATCHI AND SAATCHI ADVERTISING I DON'T THINK THE SHOW IS SO ATTRACTIVE TO UPFRONT SALES THE UPFRONT BUYING SEASON IS WHEN ADVERTISERS PURCHASE TIME AHEAD OF THE TRADITIONAL SEPTEMBER START DATE ADVERTISERS ARE HOPEFUL YET SKEPTICAL ABOUT A NEW BOCHCO VENTURE NYPD BLUE IS THE LATEST PROGRAM IN A 10SERIES DEAL MR BOCHCO SIGNED WITH ABC IN 1987 THE OTHERS COP ROCK CAPITAL CRITTERS AND CIVIL WARS BOMBED MR BOCHCO COULDN'T BE REACHED ABC IS SHOWING GUTS IN PUTTING THIS ON SAYS MR SEGAL BUT THEY HAVE LITTLE CHOICE CONSIDERING THEIR DEVELOPMENT DEAL WITH HIM HE CERTAINLY IS PUSHING ALL THE RIGHT BUTTONS FOR CONTROVERSY BUT THERE IS NO DOUBT CERTAIN ADVERTISERS WILL COME IN THE QUESTION OF COURSE SAYS MR SEGAL IS AT WHAT RATE WILL THE NETWORK BE ABLE TO SELL THE SHOW FOR A LOW ENOUGH PRICE HE SAYS THERE ARE ALWAYS ADVERTISERS WAITING IN THE WING BILL WESTBROOK VICE CHAIRMAN AND CREATIVE SERVICES DIRECTOR AT WPP GROUP'S MARTIN AGENCY OF RICHMOND VA IS MOVING TO FALLONMCELLIGOTT MINNEAPOLIS ANOTHER WPP GROUP SHOP AS PRESIDENT AND CREATIVE DIRECTOR THE MOVE IS SCHEDULED TO OCCUR IN THE SUMMER AS FALLON'S CREATIVE DIRECTOR MR WESTBROOK 48 YEARS OLD SUCCEEDS PAT BURNHAM 46 YEARS OLD WHO RESIGNED ABRUPTLY IN MARCH AS PRESIDENT MR WESTBROOK SUCCEEDS STEVEN SJOBLAD WHO REMAINS AT FALLON AS MANAGING DIRECTOR A NEW POST MR SJOBLAD 43 YEARS OLD SAID HE WILL OVERSEE CLIENTS AND DEVELOP NEW SERVICES AT FALLON SUCH AS DIRECT MARKETING AND SALES PROMOTION JOHN B ADAMS JR MARTIN AGENCY PRESIDENT SAID MR WESTBROOK'S DUTIES WOULD BE ABSORBED BY EXECUTIVES INSIDE THE AGENCY INCLUDING MIKE HUGHES ANOTHER MARTIN VICE CHAIRMAN AND CREATIVE DIRECTOR AND KERRY FEUERMAN A SENIOR VICE PRESIDENT ON MERCEDESBENZ'S BIG REGIONAL ACCOUNT KNOWN FOR HIS CHARISMATIC STYLE MR WESTBROOK HAS AMONG HIS MAIN TASKS HELPING FALLON LAND A CAR CLIENT FALLON WAS FIRED FROM THE PRESTIGIOUS PORSCHE CARS OF NORTH AMERICA ACCOUNT IN JANUARY EARLIER THIS MONTH THE SHOP WAS PASSED OVER AS A CONTENDER IN THE PITCH FOR AUDI OF AMERICA'S 30 MILLION ACCOUNT DATABASE VENTURE HAL RINEY & PARTNERS BASED IN SAN FRANCISCO AND COOPERATIVE MARKETING CO A ROLLING MEADOWS ILL DATABASE MARKETING COMPANY SAID THEY HAVE ESTABLISHED AN EXCLUSIVE VENTURE THE RELATIONSHIP MARKETING GROUP TO OFFER ADVANCED DIRECT MARKETING AND DATABASE MANAGEMENT SERVICES TO THEIR CLIENTS 9305140086 930514 OTC FOCUS STOCKS SINK ON INFLATION WORRIES FUELED BY JUMP IN APRIL CONSUMER PRICE INDEX BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NASDAQ STOCKS SANK INTO THE DOLDRUMS ON INFLATION WORRIES CAUSED BY A GREATERTHANPROJECTED INCREASE IN APRIL'S CONSUMER PRICE INDEX THE NASDAQ COMPOSITE INDEX FELL 605 POINTS OR 089 TO 67564 SLIGHTLY ABOVE ITS LOW FOR THE SESSION ADVANCERS TRAILED DECLINERS BY 1148 TO 1624 ISSUES TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME ROSE TO 207994795 SHARES FROM 202317700 YESTERDAY THE LABOR DEPARTMENT SAID APRIL'S CPI CLIMBED 04 ABOVE THE 03 INCREASE THAT WAS EXPECTED THE DATA SHOWED THAT THE CORE RATE OF INFLATION ALSO ROSE 04 FOR THE MONTH ALSO APRIL RETAIL SALES SURGED ON STRENGTH IN THE AUTO SECTOR AND JOBLESS CLAIMS IN THE LATEST WEEK FELL 3000 TO 339000 ABOUT IN LINE WITH EXPECTATIONS THE BOND MARKET SKIDDED ON THE CPI DATA WITH THE GOVERNMENT'S LONGBOND PLUMMETING 1 1/4 POINTS SHOOTING ITS YIELD UP TO 695 THE INFLATION NEWS WAS ESPECIALLY TROUBLING AS BOND INVESTORS BID ON 825 BILLION IN NEW 30YEAR BONDS IN THE LAST LEG OF TREASURY'S QUARTERLY REFUNDING YESTERDAY BIDDING AT THE AUCTION WAS REPORTED TO BE LACKLUSTER THE TREASURY AWARDED THE BONDS AT AN AVERAGE YIELD OF 697 A WORSETHANEXPECTED APRIL PRODUCER PRICE REPORT WEDNESDAY SENT THE MESSAGE THAT INFLATION MAY BE ON THE RISE BUT YESTERDAY'S REPORT HAMMERED THE NAILS INTO THE COFFIN ANALYSTS SAID AND GOLD WAS QUOTED AT 36870 AN OUNCE UP 750 NEVERTHELESS SOME MARKET WATCHERS BELIEVE THAT INFLATION FEARS ARE HURTING OTC ISSUES LESS THAN LISTED STOCKS JACK SOLOMON A TECHNICAL ANALYST AT BEAR STEARNS & CO SAID OTC STOCKS ARE NOT GETTING HIT AS HARD NOW BECAUSE THE LIABILITY HAD BEEN WRUNG OUT OF THEM ALREADY THE BEAR STEARNS ANALYST BELIEVES THE NASDAQ COMPOSITE INDEX HAS WORKED ITSELF INTO A TRADING RANGE BETWEEN 640 AND 690 FOR THE NEAR TERM OTHERS ARE MORE PESSIMISTIC HOWEVER GENERALLY SPEAKING THE OTC MARKET HAS BEEN GETTING DOGGED SINCE FEBRUARY SAID JOHN WOSCZYNA A MARKET STRATEGIST AT RONEY & CO IT WAS IN A DOWN CHANNEL AND RECENTLY WENT UP TO THE TOP SIDE I THINK THERE'S A HIGH PROBABILITY THAT WE'RE GOING TO SEE THE MARKET CONTINUE TO ROLL DOWNWARD HE ADDED THAT THIS COULD BE THE END OF THE BULL MARKET YOU CAN HAVE A MARKET THAT GOES DOWN WHERE THERE'S A LOT OF CASH AND EVERYONE'S BEARISH PORTFOLIO MANAGERS ARE STILL LOADED WITH STOCK AND UNTIL THAT CHANGES THEY'RE GOING TO GET BAGGED LIKE EVERYONE ELSE TECHNOLOGY ISSUES WERE ALMOST ALL LOWER ORACLE FELL 1 3/8 TO 38 1/8 AUTODESK SLIPPED 1 1/4 TO 47 1/4 BMC SOFTWARE FELL 1 3/4 TO 52 1/2 BORLAND INTERNATIONAL SHED 1 1/8 TO 25 7/8 LEGENT CORP WAS OFF 2 AT 27 1/4 AND LOTUS DEVELOPMENT DOVE 1 1/4 TO 30 1/2 APPLE COMPUTER WAS ONE OF THE FEW GAINERS RISING 2 1/4 TO 55 1/2 IN ACTIVE TRADING THE CUPERTINO CALIF COMPUTER CONCERN SAID IT HAS UPDATED THE WINDOWS VERSION OF ITS CROSSPLATFORM MULTIMEDIA ARCHITECTURE SOFTWARE QUICKTIME FOR WINDOWS MEANWHILE HAMBRECHT & QUIST UPGRADED THE COMPANY'S SHARES TO BUY FROM HOLD AND LIFTED FISCAL 1993 AND 1994 EARNINGS ESTIMATES THE MOST ACTIVE ISSUE FOR THE SECOND DAY IN A ROW WAS SPECTRUM INFORMATION TECHNOLOGIES MANHASSET NY WHICH ROSE 17/32 TO 5 25/32 ON TUESDAY BIG BOARDLISTED AMERICAN TELEPHONE & TELEGRAPH AGREED TO LICENSE SPECTRUM'S TECHNOLOGY FOR SENDING DATA OVER CELLULAR NETWORKS AND SAID IT MAY INVEST MORE THAN 10 MILLION IN SPECTRUM INTERESTRATE SENSITIVE STOCKS PERFORMED POORLY AS BOND PRICES SAGGED FIRST INDIANA CORP DROPPED 1 TO 17 1/2 BB&T SLID 1 TO 31 1/4 AND BAYBANKS SANK 1 1/2 TO 41 1/4 AMERICAN TRAVELLERS HOWEVER JUMPED 1 1/8 TO 9 7/8 THE BENSALEM PA INSURER REPORTED FIRSTQUARTER EARNINGS OF 33 CENTS A SHARE COMPARED WITH 31 CENTS A YEAR EARLIER AMERICAN STUDIOS IN CHARLOTTE NC TOPPLED 5 1/2 TO 8 3/4 ON HEAVY VOLUME AFTER SAYING LATE YESTERDAY THAT CURRENT TRENDS IN CUSTOMER COUNT AND REVENUE WILL BE BELOW ESTIMATES FOR THE SECOND QUARTER THE PROVIDER OF PORTRAIT PHOTOGRAPHY SERVICES IN WALMART STORES ALSO SAID IT EXPECTS SECONDQUARTER EARNINGS TO BE BELOW THE NINE CENTS A SHARE PROJECTED BY ANALYSTS A BEAR STEARNS ANALYST SAID THAT NATIONAL VISION ASSOCIATES RETREATED 1 1/4 TO 17 IN SYMPATHY WITH AMERICAN STUDIOS THE LAWRENCEVILLE GA CONCERN OPERATES WALMART VISION CENTER DEPARTMENTS IN A NUMBER OF WALMART STORES OMNI FILMS INTERNATIONAL OF SARASOTA FLA LEAPED 1 1/4 TO 4 1/4 AFTER SAYING IT SIGNED AN AGREEMENT IN PRINCIPLE TO COMBINE ITS OPERATIONS WITH SHOWSCAN CORP IN LOS ANGELES WHICH GAVE UP 1 1/8 TO 4 3/4 MADISON GROUP ASSOCIATES TUMBLED 1 17/32 TO 29/32 FOLLOWING A NEGATIVE REPORT ON THE DOW JONES NEWS SERVICE QUESTIONING THE VALUE OF THE DEERFIELD BEACH FLA COMPANY'S ASSETS NEW ISSUE LCI INTERNATIONAL CLOSED AT 20 IN HEAVY TRADING ABOVE ITS OFFERING PRICE OF 1825 A SHARE THE DUBLIN OHIO TELECOMMUNICATIONS COMPANY'S INITIAL OFFERING OF 53 MILLION COMMON SHARES WAS PRICED LATE YESTERDAY THROUGH UNDERWRITERS LED BY BEAR STEARNS 9305140085 930514 A CONSERVATIONIST ARGUMENT FOR HUNTING BY RAYMOND BONNER IT IS ABSURD FOR A MAN TO KILL AN ELEPHANT IT IS NOT BRUTAL IT IS NOT HEROIC AND CERTAINLY IT IS NOT EASY IT IS JUST ONE OF THOSE PREPOSTEROUS THINGS THAT MEN DO LIKE PUTTING A DAM ACROSS A GREAT RIVER THESE WORDS OF AVIATOR BERYL MARKHAM SUM UP HOW I FEEL ABOUT HUNTING WHILE I DON'T SHARE THE ATTITUDE OF ANIMALRIGHTS MILITANTS THAT A HUNTER IS SOME LOWER FORM OF THE HUMAN SPECIES AND ONE THAT OUGHT TO BECOME EXTINCT I CAN'T FATHOM WHY A MAN PICKS UP A RIFLE AND SHOOTS AN ELEPHANT A LION A LEOPARD OR A KUDU BUT NEGATIVE FEELINGS ABOUT HUNTERS ARE OFTEN KNEEJERK IN FACT THE ESTABLISHMENT CONSERVATION IDEOLOGY THAT OPPOSES HUNTING MAY BE COUNTERCONSERVATIONIST I SUPPORT HUNTING AS A CONSERVATION TOOL SAYS DAVID WESTERN AN EMINENT CONSERVATIONIST AND DIRECTOR OF THE NAIROBI OFFICE OF WILDLIFE CONSERVATION INTERNATIONAL THE FIELD RESEARCH ARM OF THE NEW YORK ZOOLOGICAL SOCIETY ALTHOUGH MR WESTERN IS NOT A HUNTER HE EXPLAINS TO ME IT'S THE SURVIVAL OF THE WILDLIFE THAT MATTERS INDEED FROM A CONSERVATION PERSPECTIVE IT CAN BE ARGUED THAT HUNTING SHOULD BE PROMOTED OVER TOURISM WHILE RESEARCHING A BOOK ON CONSERVATION IN AFRICA I DISCOVERED THAT ECOLOGICALLY TOURISTS DO MORE DAMAGE THAN HUNTERS AND NOT JUST BECAUSE THERE ARE SO MANY MORE OF THE CAMERA CLICKERS THEY SPEED ACROSS THE PLAINS IN THEIR MINIVANS TEARING UP THE GRASS CREATING DUST BOWLS AND CUTTING UGLY RUTS THEN THEY SURROUND A LION PRIDE OR RHINO REDUCING THE ANIMALS TO FRIGHT BOREDOM OR WHAT SOMETIMES SEEMS LIKE NEAR TEARS THE FIRST OFFENSE IS A SUBTLE ONE MAN AS TOURIST IS TAKING THE WILD OUT OF THE WILDLIFE IN AFRICA AS RECENTLY AS THE 1970S THE LIONS IN NGORONGORO A SPECTACULAR NATURAL ZOO IN THE BOWL OF A VOLCANO IN NORTHERN TANZANIA WOULD HIDE FROM TOURIST VEHICLES ONE RESEARCHER NOTED THESE DAYS FOLLOWING A STEADY INCREASE IN HUMAN VISITORS THE LIONS HAVE BECOME SO ACCUSTOMED TO MAN AND HIS CAR THAT THEY YAWN AND POSE AFTER SO MANY YEARS OF BEING HOUNDED BY TOURISTS THE CHEETAH THE FASTEST ANIMAL IN THE KINGDOM NO LONGER LIVES LIKE A WILD ANIMAL SAYS RICHARD LEAKEY DIRECTOR OF THE KENYA WILDLIFE SERVICE TOURISTS LOVE TO STALK THE SLEEK CHEETAH AS IT STALKS A GAZELLE OR IMPALA THE CHEETAH REACTS BY RUNNING AWAY OR LYING DOWN IE GIVING UP ITS NATURAL ACTIVITY UNTIL THE TOURISTS BORED BY THE INACTIVITY MOVE ON TOURISM MAY EVEN KILL MORE ANIMALS THAN HUNTERS DO IT SOMETIMES PREVENTS MOTHERS FROM FEEDING THEIR FAMILIES HARASSMENT OF THE LIONS BY CAMERA IN SERENGETI HAS LED TO SO MANY KILLS BEING MISSED THAT LION CUBS SOMETIMES STARVE NORMAN MYERS A BRITISH CONSERVATIONIST WROTE IN 1972 ABOUT THE NORTHERN TANZANIA PARK A RESPONSIBLE PROFESSIONAL HUNTER DOES NOT SHOOT A FEMALE OF A CHILDBEARING AGE FOR SELFISH REASONS THE CUBS SHE WILL BEAR ARE THE HUNTER'S FUTURE PREY THERE IS ANOTHER ARGUMENT FOR HUNTING TOURISTS ASSAULT THE DIGNITY AND CULTURES OF INDIGENOUS PEOPLE SNAPPING PICTURES AS IF THE PERSON WERE ONE OF THE WILD ANIMALS BARGAINING FOR JEWELRY OR CLOTHING THAT THE PERSON IS WEARING AND PAYING WITH A FEW SHILLINGS THE HUNTER HOWEVER MAKES ONLY LIMITED CONTACT WITH LOCAL PEOPLE SQUALID VILLAGES WITH PROSTITUTES AND BEGGING CHILDREN DO NOT SPRING UP NEAR HUNTERS' WILDERNESS CAMPS AS THEY DO NEAR HIGHRISE TOURIST HOTELS COSTA MLAY THE FORMER DIRECTOR OF TANZANIA'S WILDLIFE DEPARTMENT FIGURES THAT ONE HUNTER IS WORTH A HUNDRED NONHUNTING TOURISTS TO HIS COUNTRY EACH HUNTER IS REQUIRED TO PAY 200 A DAY TO THE GOVERNMENT THIS IS IN ADDITION TO WHAT HE PAYS HIS PROFESSIONAL HUNTER GUIDE AND THERE IS A 21DAY MINIMUM FOR A HUNTING SAFARI THE HUNTER ALSO HAS TO BUY A LICENSE AND THEY ARE EXPENSIVE 4000 FOR EACH ELEPHANT HE PLANS TO SHOOT 2000 FOR A LEOPARD OR LION 1300 FOR A KUDU SIMILAR TO AN ANTELOPE HUNTERS PAID ROUGHLY 10000 EACH DIRECTLY TO THE TANZANIAN GOVERNMENT DURING THE 1991 HUNTING SEASON AND THE GOVERNMENT TOOK IN 23 MILLION FROM LICENSE FEES ALONE MORE THAN THE GATE FEES TOURISTS PAID TO ENTER THE COUNTRY'S PARKS KENYA BANNED HUNTING IN THE 1970S NOT ON MORAL OR ETHICAL GROUNDS BUT BECAUSE OF MASSIVE CORRUPTION UPON BECOMING DIRECTOR OF THE KENYA WILDLIFE SERVICE IN 1989 MR LEAKEY SAID HE WOULD LIKE TO REINTRODUCE IT HE NOT ONLY BELIEVES IN HUNTING BUT IN HUNTING ELEPHANTS ALTHOUGH HE HAS BEEN CAREFUL NOT TO SAY THIS PUBLICLY IN A 1989 MEETING WITH US OFFICIALS WHICH WAS REPORTED TO WASHINGTON IN A CONFIDENTIAL CABLE MR LEAKEY URGED WASHINGTON NOT TO TAKE ACTIONS THAT WOULD PROHIBIT THE SPORT HUNTING OF ELEPHANTS IN KENYA MR LEAKEY'S REASONS FOR WANTING TO BRING HUNTERS TO KENYA ARE SIMPLE HIS DEPARTMENT DESPERATELY NEEDS THE MONEY FOR CONSERVATION IT IS CURRENTLY DEPENDENT ON SOME 50 MILLION A YEAR FROM THE INTERNATIONAL COMMUNITY A 1989 SURVEY CONCLUDED THAT HUNTERS WOULD PAY 4 MILLION TO THE KENYAN WILDLIFE DEPARTMENT IN LICENSE FEES ALONE FOUR TIMES MORE THAN THE GOVERNMENT HAD EVER EARNED IN A SINGLE YEAR FROM PARK ENTRANCE FEE LANDOWNERSHIP PLAYS A ROLE HERE CONTRARY TO WHAT WESTERNERS THINK MOST OF KENYA'S WILDLIFE IS NOT IN PARKS BUT ON PRIVATE LANDS KENYA'S CONSERVATIONISTS REALIZE THAT THE LANDOWNERS ARE NOT GOING TO TOLERATE WILDLIFE'S PRESENCE WITHOUT AN INCENTIVE ELEPHANTS TRAMPLE CROPS LIONS EAT CATTLE AND CHILDREN LANDOWNERS WHO EARN AN AVERAGE OF 70 CENTS A HECTARE FROM TOUR OPERATORS FOR CONCESSIONS COULD EARN ALMOST 2 A HECTARE FROM SELLING HUNTING CONCESSIONS WHAT KEEPS KENYA THEN FROM RESTORING HUNTING IN PART NONAFRICANS' CONVENTIONAL WISDOM ABOUT WHAT IS GOOD FOR AFRICAN WILDLIFE MR LEAKEY AND OTHER KENYAN WILDLIFE OFFICIALS FEAR THE INTERNATIONAL COMMUNITY WON'T APPROVE OF A RETURN TO HUNTING KENYA'S TOUR OPERATORS FEAR THAT HUNTING WILL DAMAGE THE COUNTRY'S IMAGE AND COULD LEAD TO CAMPAIGNS BY THE MILITANT ANIMALRIGHTS ORGANIZATIONS TO BOYCOTT KENYA THE RESULT IS THAT KENYA AND MANY OTHER PARTS OF AFRICA CANNOT FOLLOW THE MOST EFFICIENT PATH TO CONSERVATION MR BONNER A JOURNALIST WHO LIVED IN KENYA FROM 1988 TO 1992 IS THE AUTHOR OF AT THE HAND OF MAN PERIL AND HOPE FOR AFRICA'S WILDLIFE KNOPF 9305140084 930514 TECHNOLOGY & MEDICINE STUDY LINKS BREAST CANCER TREATMENT TO HIGHER RISK OF THE DISEASE IN LUNGS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY SAYS RADIATION TREATMENTS FOR BREAST CANCER INCREASE THE RISK OF LUNG CANCER BUT THE COLUMBIA UNIVERSITY SCIENTIST WHO HEADED THE RESEARCH TEAM SAID THE FINDING WAS MAINLY OF SCIENTIFIC INTEREST AND SHOULDN'T ALARM WOMEN WHO RECEIVE THE TREATMENT I DON'T THINK WOMEN WHO ARE BEING TREATED FOR BREAST CANCER OR WHO HAD RADIATION TREATMENTS FOR BREAST CANCER IN THE PAST SHOULD BE OVERLY CONCERNED SAID ALFRED I NEUGUT A CANCER SPECIALIST AT THE COLLEGE OF PHYSICIANS AND SURGEONS COLUMBIA'S MEDICAL SCHOOL IN NEW YORK DR NEUGUT IS HEAD OF A RESEARCH TEAM THAT IS REPORTING IN THE MOST RECENT ISSUE OF THE JOURNAL CANCER THAT WOMEN WHO RECEIVED RADIATION TREATMENTS FOR BREAST CANCER ARE TWICE AS LIKELY TO DEVELOP LUNG CANCER AS BREAST CANCER PATIENTS WHO DIDN'T RECEIVE RADIATION TREATMENTS THE RESEARCHERS REPORTED THEIR ANALYSIS OF HEALTH AND MEDICAL DATA ON MORE THAN 56000 WOMEN WHO WERE TREATED FROM 1973 TO 1986 FOR BREAST CANCER THAT WAS DIAGNOSED BEFORE IT HAD SPREAD TO OTHER PARTS OF THE BODY THE DATA WERE GATHERED BY THE NATIONAL CANCER INSTITUTE FROM STATE AND LOCAL REGISTRIES OF CANCER PATIENTS THE WOMEN'S RISK OF LUNG CANCER WAS LOW OVER THE 13 YEARS COVERED BY THE DATA ONLY 1 OF THE WOMEN OR 595 DEVELOPED LUNG CANCER HOWEVER STATISTICALLY THERE WAS A DOUBLING OF THE RISK OF LUNG CANCER AMONG WOMEN WHO HAD RECEIVED RADIATION THERAPY COMPARED WITH THOSE WHO HADN'T THE DATA COVERED 13750 WOMEN WHO HAD RECEIVED RADIATION AN AVERAGE OF 69 YEARS EARLIER AMONG THESE 122 DEVELOPED LUNG CANCER IN COMPARISON THERE WERE 473 LUNG CANCERS AMONG THE 41196 WOMEN WHO DIDN'T RECEIVE RADIATION AND WHOSE FATES HAD BEEN FOLLOWED AN AVERAGE OF 10 YEARS THE DATA DIDN'T REVEAL HOW MUCH RADIATION EACH WOMAN RECEIVED OR HOW THE RADIATION WAS DELIVERED MOST OF THE WOMEN WERE TREATED IN THE 1970S WHEN RADIATION THERAPY OFTEN WAS USED AFTER A RADICAL OR TOTAL MASTECTOMY IN WHICH THE WHOLE BREAST WAS REMOVED BUT THIS PRACTICE HAS CHANGED MARKEDLY IN THE PAST FEW YEARS WOMEN DIAGNOSED WITH EARLY BREAST CANCER HAVE BEEN INCREASINGLY CHOOSING BREASTPRESERVATION THERAPY IN WHICH ONLY THE TUMOR IS REMOVED FROM THE BREAST A SOCALLED LUMPECTOMY FOLLOWED BY A SERIES OF RADIATION TREATMENTS SOME OF THE METHODS USED IN THE 1970S RESULTED IN THE LUNGS RECEIVING MORE RADIATION THAN IS THE CASE WITH TODAY'S LUMPECTOMYPLUSRADIATION NOTED SAMUEL HELLMAN DEAN OF THE UNIVERSITY OF CHICAGO MEDICAL SCHOOL AND A RADIATION THERAPIST WHO HELPED PIONEER THE INCREASINGLY POPULAR BREASTPRESERVATION THERAPY THERE'S NO QUESTION THAT RADIATION CAN CAUSE CANCER DR HELLMAN SAID BUT HE ADDED THE EXPOSURE OF THE LUNG TO RADIATION IN BREAST CANCER PATIENTS DEPENDS ON TECHNICAL FACTORS SUCH AS THE PATTERN OF THE RADIATION ON THE CHEST AND THE ANGLE AT WHICH IT IS DELIVERED IN PATIENTS WHO HAVE HAD A LUMPECTOMY PLUS RADIATION THE RISK OF LUNG CANCER HAS NEVER BEEN A PROBLEM BEFORE HE SAID DR NEUGUT AGREED THAT WOMEN CHOOSING A LUMPECTOMY PLUS RADIATION MAY BE RECEIVING LESS RADIATION THAN THE WOMEN COVERED BY THE STUDY WHETHER THE RADIATION TECHNIQUES USED TODAY INCREASE THE RISK OF LUNG CANCER WON'T BE KNOWN FOR SEVERAL YEARS HE SAID DR NEUGUT SAID IT ALSO IS IMPORTANT TO FIND OUT IN FUTURE STUDIES IF CIGARETTE SMOKING COULD ACCOUNT FOR SOME OR ALL OF THE INCREASED RISK OF LUNG CANCER AMONG THE BREAST CANCER PATIENTS THE STUDY IS IMPORTANT MAINLY BECAUSE IT ADDS EVIDENCE TO THE BELIEF THAT RADIATION CAN INDEED CAUSE CANCER HE SAID 9305140083 930514 POTOMAC WATCH BTU BLUES WILL IT STAND FOR BOREN TAX UNIT' BY PAUL A GIGOT DEMOCRAT DANIEL PATRICK MOYNIHAN CONGRESS'S SECONDBEST WIT AFTER BOB DOLE RECENTLY INTRODUCED REPUBLICAN BOB PACKWOOD AS THE FORMER CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND AS THE FUTURE CHAIRMAN IF WE DO NOT GET THIS TAX BILL THROUGH THEN HE PAUSED IF WE GET IT THROUGH THE QUIP REFLECTS THE JITTERY GLOOM OF SENATE DEMOCRATS NOW CONTEMPLATING PRESIDENT CLINTON'S 250 BILLION TAX INCREASE THEY'RE LIKE DOUGHBOYS ABOUT TO GO OVER THE TOP IN WORLD WAR I THEY HAVE THEIR ORDERS BUT THEY SURE HAVE THEIR DOUBTS ABOUT THIS CLINTON STRATEGY OF CHARGING HEADLONG INTO ENEMY MACHINE GUNS TWO KEY SWING DEMOCRATS IN PARTICULAR DAVID BOREN AND JOHN BREAUX HAVE TO DECIDE IF THEY WANT TO BE CANNON FODDER FOR THE CLINTON COUNTERREVOLUTION THEY BOTH SIT ON SENATE FINANCE WHERE DEMOCRATS HOLD ONLY AN 119 EDGE AND WHERE THE REAL TAX ACTION WILL BE THE LIBERAL HOUSE IS A SIDESHOW SENATE REPUBLICANS ALIENATED BY THE ALLTAXES ESSENCE OF THE CLINTON PLAN WILL STAND UNITED AGAINST DEMOCRATS CAN'T AFFORD A SINGLE DEFECTION MR MOYNIHAN IS A MAVERICK BUT ON THIS HIS FIRST BIG BILL AS FINANCE CHAIRMAN HE'LL FOLLOW HIS PRESIDENT NORTH DAKOTA'S KENT CONRAD IS EXPECTED TO BE BOUGHT OFF WITH TAX EXEMPTIONS FOR FARMERS THAT LEAVES SENS BOREN AND BREAUX TO PLAY HORATIO AT THE BRIDGE IF THEY HAVE THE GUMPTION THE IRONY IS EXQUISITE BECAUSE THE TWO ARE JUST THE SORT OF MODERATE DEMOCRATS WHO WERE SUPPOSED TO BE THE CENTER OF GRAVITY IN THE AGE OF CLINTON MR BOREN AN OKLAHOMAN SUPPORTED PAUL TSONGAS IN THE PRIMARIES AS THE MORE FISCALLY CONSERVATIVE DEMOCRAT MR BREAUX A LOUISIANAN FROM CAJUN COUNTRY BACKED MR CLINTON FROM THE START AND WAS A COFOUNDER OF THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL BUT THE EXTREMISM OF THE CLINTON TAX PLAN HAS SO FAR PUT THE PAIR AT ZERO GRAVITY THEY BOTH URGED MORE SPENDING CUTS ON MR CLINTON IN JANUARY BUT WERE IGNORED THEN THEY URGED A COMPROMISE WITH REPUBLICANS ON STIMULUS SPENDING BUT WERE IGNORED AGAIN ONLY TO BE PROVED RIGHT BY THE VICTORIOUS GOP FILIBUSTER NOW MR CLINTON WANTS THEM TO MAKE A HIGHLY PUBLIC PARTISAN VOTE FOR THE LARGEST TAX INCREASE IN US HISTORY WHAT ARE NEW DEMOCRAT FRIENDS FOR THE PRESIDENT'S PLEAS COME BECAUSE OF GROWING GRASSROOTS OPPOSITION ESPECIALLY TO HIS 73 BILLION ENERGY TAX REPUBLICANS KNOW THAT IF THEY KILL THIS TAX THEY SUCK THE OXYGEN OUT OF NEW FEDERAL SPENDING OPPONENTS ALSO KNOW THAT A TAX IS EASY TO RAISE ONCE IT'S IMPOSED MR CLINTON CHOSE THE NEW BTU TAX FOR BRITISH THERMAL UNIT PRECISELY BECAUSE IT'S A TAX ON THE MIDDLE CLASS THAT THE MIDDLE CLASS CAN'T EASILY SEE IT'S DESIGNED TO BE THE FEDERAL CASH COW FOR THE 1990S THE TAX IS SO UNPOPULAR THAT EVEN MR CLINTON'S FAVORITE BUSINESS LOBBY THE CHAMBER OF COMMERCE HAS COME OUT AGAINST IT MEMBERS OVERWHELMED THE CHAMBER'S GETALONG BELTWAY OPERATIVES AN OKLAHOMA UNIVERSITY STUDY PREDICTS THE TAX WILL COST SOME 11000 JOBS IN THE STATE ABOUT 1 OF THE TOTAL EVEN MR BOREN'S FORMER TAX COUNSEL OKLAHOMA CORPORATION COMMISSIONER CODY GRAVES HAS DENOUNCED IT LOUISIANA MAY FARE EVEN WORSE BECAUSE ITS ECONOMY IS MORE ENERGYDRIVEN THAN ANY OTHER STATE'S JERRY JASINOWSKI OF THE STALWART NATIONAL ASSOCIATION OF MANUFACTURERS SAYS IT LOOKS LIKE THE MOMENTUM IS GOING OUR WAY AT LEAST THE SENATORS ARE DANCING LIKE NERVOUS GAZELLES MR BREAUX HAS FLOATED A GASOLINE TAX AS AN ALTERNATIVE TO THE BTU BUT CAN'T BRING HIMSELF TO SAY HE'LL OPPOSE THE PRESIDENT MR BOREN SAYS THAT IF HE WERE WISE THE PRESIDENT WOULD REMAIN FLEXIBLE ENOUGH TO EMBRACE A PROPOSAL WITH MORE SPENDING CUTS AND FEWER TAX INCREASES ANY IDEAS HE SAYS HE'S WORKING ON A BIPARTISAN ALTERNATIVE BEHIND THE SCENES THE WIDESPREAD SUSPICION IS THAT THE TWO WILL HEM AND HAW STOMP AND WIGGLE BUT IN THE END GO ALONG IF THEY CAN SQUEEZE OUT SOME SPECIALINTEREST EXEMPTIONS THE BTU TAX ALREADY HAS MORE HOLES THAN A BAD ALIBI SOUTH DAKOTA'S TOM DASCHLE GOT A PASS FOR ETHANOL AS DID MAINE'S GEORGE MITCHELL FOR HOME HEATING OIL SPEAKER TOM FOLEY JUST WON A REPRIEVE FOR HIS DISTRICT'S ALUMINUM MAKER MORE VOTEGREASING LOOPHOLES WILL YET FLOW TO FARMERS AND OIL DRILLERS BECAUSE THE CLINTON PLAN CAN'T SELL ON THE MERITS SUPPORTERS FALL BACK ON THE BLINDLOYALTY ARGUMENT DEMOCRATS CAN'T AFFORD TO LET THE PRESIDENT LOSE HIS FIRST BIG TEST BUT IT'S JUST AS PLAUSIBLE TO ARGUE THAT THE CLINTON PRESIDENCY CAN'T SURVIVE ON ITS CURRENT TAXANDSPEND TRAJECTORY ITS POLICIES WON'T GROW THE ECONOMY REDUCE THE DEFICIT OR ATTRACT ROSS PEROT VOTERS SENS BOREN AND BREAUX CAN DO MR CLINTON THE MOST GOOD BY DOING HIS TAX PLAN SOME HARM FORCING HIM BACK TO A CENTRIST STRATEGY IF THEY CHOOSE THE EASIER PATH AT LEAST WE CAN ALL START SAYING THAT BTU REALLY STANDS FOR BOREN OR BREAUX TAX UNIT 9305140082 930514 CREDIT MARKETS BOND PRICES PLUNGE ON RISE IN CONSUMER PRICES FORCING US TO SWEETEN YIELDS IN 30YEAR SALE BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORE BAD INFLATION NEWS JOLTED INVESTORS YESTERDAY SENDING BOND PRICES INTO A TAILSPIN AND FORCING THE TREASURY TO PAY HIGHER YIELDS THAN EXPECTED TO SELL 30YEAR GOVERNMENT BONDS PRICES OF SOME ACTIVELY TRADED LONGTERM GOVERNMENT BONDS NOSEDIVED 1 1/4 POINTS OR 1250 FOR EACH 1000 FACE AMOUNT EXTENDING A SLUMP THAT BEGAN WEDNESDAY FOR EXAMPLE THE TREASURY'S BENCHMARK 30YEAR ISSUE TUMBLED TO 102 1/8 FROM 103 3/8 LATE WEDNESDAY ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE ROSE TO 695 FROM 686 EVEN THOUGH MANY ECONOMISTS STILL INSIST INFLATION IS NO THREAT BOND TRADERS WERE STUNNED BY A GOVERNMENT REPORT EARLY YESTERDAY SHOWING CONSUMER PRICES SURGED 04 LAST MONTH THAT WAS CONSIDERABLY HIGHER THAN ANALYSTS HAD EXPECTED AND DASHED HOPES THAT THE FEDERAL RESERVE MIGHT CUT SHORTTERM INTEREST RATES ANYTIME SOON THE FED'S POLICYMAKING COMMITTEE WILL REVIEW ITS STRATEGY AT A REGULARLY SCHEDULED MEETING NEXT TUESDAY THE INFLATION REPORT WAS ESPECIALLY DAMAGING BECAUSE IT CAME ON THE HEELS OF WEDNESDAY'S STARTLING REPORT THAT PRODUCER PRICES IN APRIL SHOT UP 06 THREE TIMES AS MUCH AS ANALYSTS HAD EXPECTED AND THE LARGEST GAIN IN 2 1/2 YEARS THE GOVERNMENT ALSO REPORTED YESTERDAY THAT RETAIL SALES ROSE 12 LAST MONTH A SIGN THAT THE ECONOMY MAY BE PICKING UP STEAM YESTERDAY'S GRIM INFLATION NEWS CAME AT AN ESPECIALLY BAD MOMENT FOR THE US TREASURY ONLY A FEW HOURS AFTER THE INFLATION REPORT DROVE UP INTEREST RATES THE TREASURY SOLD 30YEAR BONDS IN THE THIRD AND FINAL LEG OF ITS MASSIVE QUARTERLY FINANCING OPERATION THE TREASURY HAD TO PAY AN AVERAGE YIELD OF 697 ON THOSE 30YEAR BONDS AS RECENTLY AS WEDNESDAY EVENING THE BONDS WERE TRADING ON A WHENISSUED BASIS AT AROUND 687 NONETHELESS MONEY MANAGERS SAY INVESTORS SHOULDN'T PANIC THAT THERE ARE NO SIGNS OF A MAJOR RESURGENCE OF INFLATION AND THAT CERTAIN TYPES OF BONDS STILL REPRESENT ATTRACTIVE INVESTMENTS I DO NOT THINK THIS IS THE BEGINNING OF A BIG BEAR MARKET IN BONDS SAID THERESA HAVELL DIRECTOR OF FIXED INCOME AT NEUBERGER & BERMAN SHE SAID THE LATEST INFLATION NEWS ISN'T WORRISOME AND THAT THIS IS A GOOD OPPORTUNITY FOR INVESTORS TO BUY INTERMEDIATETERM BONDS THOSE DUE IN 10 YEARS OR LESS MANY OTHER INVESTMENT ADVISERS ARE BULLISH ON INTERMEDIATETERM BONDS BECAUSE THEIR YIELDS ARE VERY CLOSE TO THOSE ON LONGTERM BONDS WHILE THEIR PRICES ARE MUCH LESS VOLATILE IN THE RESALE MARKETS THAN THOSE OF LONGTERM ISSUES INTERMEDIATETERM TAXFREE BONDS ARE LIKELY TO REMAIN ESPECIALLY POPULAR BECAUSE OF THE CLINTON ADMINISTRATION'S PLANS TO RAISE TAXES SEVERAL INVESTMENT STRATEGISTS PREDICTED SOME TAXFREE 10YEAR BONDS WITH A DOUBLEA RATING NOW YIELD 510 THAT IS ONLY 065 PERCENTAGE POINT LESS THAN THE 575 ON TAXFREE BONDS DUE IN 30 YEARS SAID AUSTIN TOBIN PRESIDENT OF DELPHIS HANOVER CORP SOUTHBURY CONN THAT GAP ALSO IS CLOSE TO THE SMALLEST IN THIS AREA DURING THE PAST YEAR HE SAID THE GAP HAS RANGED BETWEEN 060 PERCENTAGE POINT AND ONE FULL PERCENTAGE POINT EVEN IF INTEREST RATES DO RISE THEY WON'T RISE SHARPLY SEVERAL INVESTMENT MANAGERS SAID MY OWN VIEW IS THAT INFLATION HAS BOTTOMED AND I THINK BOND YIELDS ALSO ARE MAKING A BOTTOM SAID THOMAS J STEFFANCI DIRECTOR OF FIXED INCOME AT FIDELITY INVESTMENTS IN BOSTON I THINK YOU WILL SEE INTEREST RATES EDGE HIGHER BUT I UNDERLINE THE WORD EDGE BECAUSE THERE ARE NO INFLATIONARY FORCES IN THE SYSTEM TO PUSH INFLATION SIGNIFICANTLY HIGHER THAN 3 TO 4 NEVERTHELESS INVESTORS GAVE THE GOVERNMENT'S 30YEAR BOND ISSUE AN UNENTHUSIASTIC RECEPTION YESTERDAY THERE WAS LITTLE PARTICIPATION BY INSTITUTIONAL INVESTORS LEAVING BOND DEALERS WITH LARGE AMOUNTS OF UNSOLD ISSUES SITTING ON THEIR SHELVES SAID KATHLEEN M CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC A NEW YORK ECONOMIC AND INVESTMENT ADVISORY COMPANY INDIVIDUAL INVESTORS ALSO BOUGHT LESS THAN THEY USUALLY DO AT LONGTERM BOND AUCTIONS THE TOTAL AMOUNT OF NONCOMPETITIVE BIDS WHICH COME MAINLY FROM INDIVIDUALS FELL TO 330 MILLION FROM AN AVERAGE OF 402 MILLION AT THE PREVIOUS 12 AUCTIONS MS CAMILLI SAID THIS LUKEWARM RECEPTION CAME EVEN THOUGH TREASURY OFFICIALS SAID LAST WEEK THEY WILL SLASH FUTURE SALES OF 30YEAR BONDS A DEVELOPMENT THAT SOME TRADERS THOUGHT MIGHT BOLSTER BOND PRICES BY CREATING A SCARCITY VALUE THE TREASURY SAID IT WILL ISSUE MORE SHORTTERM DEBT AND FEWER LONGTERM BONDS IN AN EFFORT TO REDUCE ITS BORROWING COSTS AND SAVE TAXPAYERS' MONEY SINCE THAT ANNOUNCEMENT ON MAY 5 THE PRICE OF THE 30YEAR BOND HAS DROPPED MORE THAN TWO POINTS OR OVER 20 FOR EACH 1000 FACE AMOUNT FEDERAL RESERVE OFFICIALS FACE TOUGH DECISIONS AT THEIR CREDIT POLICY MEETING TUESDAY MANY ANALYSTS THINK THE FED PROBABLY WILL DECIDE TO LEAVE ITS CREDIT STANCE UNCHANGED BUT SOME THINK THE FED MAY AUTHORIZE A MOVE TO RAISE SHORTTERM RATES SLIGHTLY IF FURTHER SIGNS OF HIGHER INFLATION EMERGE SOME HIGHLY REGARDED INVESTMENT ADVISERS THINK THE INFLATION SCARE WILL BE SHORTLIVED AS SO MANY OTHER SCARES HAVE BEEN IN RECENT YEARS AND THAT INTEREST RATES WILL CONTINUE DRIFTING LOWER THE CONSUMER PRICE SURGE WAS JUST PLAIN BAD BUT WE STILL EXPECT LOWER INFLATION SAID EDWARD S HYMAN PRESIDENT OF ISI INC A MONEY MANAGEMENT AND ECONOMIC RESEARCH FIRM FINALLY IT'S OVER THE TREASURY'S HUGE THREEPART FINANCING OPERATION THIS WEEK ENDED YESTERDAY WITH THE GOVERNMENT'S 30YEAR BOND AUCTION THE AVERAGE YIELD OF 697 WAS DOWN FROM 722 AT THE PREVIOUS 30YEAR BOND AUCTION IN FEBRUARY TREASURY OFFICIALS RECEIVED BIDS TOTALING 1959 BILLION FOR THE 826 BILLION THEY ACCEPTED THUS THE BIDTOCOVER RATIO WAS 237 DOWN FROM 263 AT THE PREVIOUS AUCTION IN FEBRUARY BUT THAT 237 RATIO WAS UP FROM AN AVERAGE OF 222 AT THE PREVIOUS 12 AUCTIONS SAID MS CAMILLI OF MARIA FIORINI RAMIREZ IN THE FIRST TWO PARTS OF THIS WEEK'S REFUNDING THE TREASURY SOLD THREEYEAR NOTES AT AN AVERAGE ANNUAL YIELD OF 427 AND 10YEAR NOTES AT AN AVERAGE OF 596 INTERMEDIATETERM TREASURY NOTE YIELDS ROSE YESTERDAY FOR EXAMPLE TWOYEAR NOTES WERE QUOTED LATE YESTERDAY AT 391 UP FROM 379 LATE WEDNESDAY THREEYEAR NOTES YIELDED 436 UP FROM 426 FIVEYEAR NOTES YIELDED 515 UP FROM 503 SEVENYEAR NOTES YIELDED 563 UP FROM 553 THE TREASURY ALSO SOLD 129DAY CASH MANAGEMENT BILLS YESTERDAY HERE ARE DETAILS OF THE TREASURY'S 30YEAR BOND AUCTION AND THE SALE OF CASH MANAGEMENT BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED MAY 17 AND MATURE SEPT 23 1993 RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE NOTES ARE DATED MAY 17 1993 AND MATURE FEB 15 2023 MUNICIPAL BOND PRICES FELL BUT NOT NEARLY AS MUCH AS THOSE OF TREASURY ISSUES PRICES OF ACTIVE ISSUES GENERALLY SLID ABOUT 1/4 POINT TO 3/8 POINT FOR EXAMPLE CHICAGO'S 5625 TELEPHONE SYSTEM REVENUE BONDS DUE 2023 CLOSED 3/8 POINT LOWER AT 96 1/4 BID TO YIELD 588 AMONG THE NEW ISSUES YESTERDAY WAS A 3238 MILLION OFFERING BY THE TEXAS PUBLIC FINANCE AUTHORITY IN COMPETITIVE BIDDING THE ISSUE WAS WON BY A GROUP OF UNDERWRITERS LED BY JP MORGAN SECURITIES INC A UNIT OF JP MORGAN & CO THE UNDERWRITERS REOFFERED THE BONDS TO INVESTORS AT YIELDS RANGING FROM 340 ON BONDS DUE IN 1995 TO 560 ON BONDS DUE IN 2012 AND 2013 BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP HAVE GIVEN THE BONDS A DOUBLEA RATING SEPARATELY UNDERWRITERS LATE WEDNESDAY RAISED PRICES AND REDUCED YIELDS ON PARTS OF A 667 MILLION ISSUE OF REVENUE BONDS BY NEW YORK STATE URBAN DEVELOPMENT CORP A SPOKESMAN FOR MORGAN STANLEY & CO SAID JUNK BONDS OF GPA GROUP PLC DOUBLED IN PRICE YESTERDAY IN THE WAKE OF NEWS THAT GENERAL ELECTRIC CAPITAL CORP HAS AGREED TO GIVE THE DEBTLADEN IRISH AIRCRAFT LEASING COMPANY A HUGE FINANCIAL BOOST BY PURCHASING 135 BILLION IN AIRCRAFT AND AN OPTION TO BUY MUCH OF GPA'S OUTSTANDING EQUITY GE CAPITAL IS A UNIT OF GENERAL ELECTRIC CO IN THE BROADER JUNK MARKET MOST ISSUES ENDED LITTLE CHANGED WITH INVESTORS ABSENT FROM THE MARKET TO AVOID TURBULENCE FROM THE TREASURY'S 30YEAR BOND AUCTION AND FALLING BOND AND EQUITY PRICES INVESTMENTGRADE ISSUES FELL FROM 1/8 POINT TO AS MUCH AS ONE POINT WITH THE BIGGEST LOSSES AMONG LONGERDATED INDUSTRIAL AND UTILITY BONDS GPA'S MOST ACTIVELY TRADED ISSUE ITS 875 GUARANTEED NOTES DUE 1998 SOARED 25 POINTS TO CLOSE AT 50 TRADERS SAID FOR THE FIRST TIME IN A MONTH THE BONDS BEGAN TRADING WITH ACCRUED INTEREST A SIGN THAT INVESTORS BELIEVE THE COMPANY WILL BE ABLE TO MEET FUTURE INTEREST PAYMENTS SECURITIES PRICES OF MORTGAGE SECURITIES ENDED LOWER BUT INVESTOR INTEREST HELPED MINIMIZE THE LOSSES IN SECONDARY TRADING 7 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SECURITIES FOR JUNE DELIVERY ENDED 11/32 LOWER AT 100 14/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD SECURITIES CLOSED 10/32 LOWER AT 100 23/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 11/32 LOWER AT 100 18/32 MORTGAGE TRADERS SAID THROUGHOUT THE DAY THAT RETAIL ACCOUNTS AND DEALERS CONTINUE TO PROVIDE STRENGTH TO THE PASSTHROUGH MARKET A DECLINE IN MORTGAGELOAN REFINANCING ACTIVITY COUPLED WITH RISING LONGTERM INTEREST RATES COULD MEAN AN ABRUPT END TO PREPAYMENT WORRIES FOR INVESTORS IN MORTGAGEBACKED SECURITIES THE PRIMARY MARKET YIELDED NO NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS FOR THE SECOND CONSECUTIVE SESSION FOR THE WEEK ONLY 136 BILLION IN PRODUCTION HAS BEEN ANNOUNCED 9305140081 930514 NOTABLE & QUOTABLE FROM ERIC FELTEN'S NEW BOOK THE RULING CLASS INSIDE THE IMPERIAL CONGRESS REGNERY GATEWAY MEMBERS OF CONGRESS TOLERATE THE ARROGANCE OF THEIR MINIONS FOR A VARIETY OF REASONS FOR ONE THING MANY ARE ARROGANT THEMSELVES AND THEIR STAFFS' ACTIONS AND ATTITUDE SEEM INNOCUOUS BY CONTRAST EVEN MORE IMPORTANT MANY LAWMAKERS HAVE BECOME PRODUCTS OF THEIR STAFFS WHEN LEGISLATORS ASK QUESTIONS AT HEARINGS MORE OFTEN THAN NOT THEIR EVERY REMARK HAS BEEN SCRIPTED IN ADVANCE BY STAFF AIDES WHAT ABOUT FOLLOWUPS LOOK FOR A STAFFER TO LEAN OVER AND WHISPER THEM INTO THE MEMBER'S EAR MOST LEGISLATION GETS ITS START AT STAFFERS' DESKS EVEN WHEN LAWMAKERS GIVE THEIR AIDES' BROAD OUTLINES THE STAFF FILLS IN THE TEXT AND WHEN IT COMES TIME FOR THAT TEXT TO BE VOTED ON FEW LAWMAKERS WILL HAVE READ IT THOUGH AGAIN THEIR AIDES WILL BE THERE TO TELL THEM WHETHER THEY OUGHT TO VOTE YES OR NO 9305140080 930514 ABREAST OF THE MARKET INDUSTRIALS FALL 3432 FROM RECORD ON NEW TROUBLING INFLATION DATA BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ANOTHER TROUBLING INFLATION READING SENT STOCKS SHARPLY LOWER INVESTORS WERE RATTLED BY THE PROSPECT THAT CREEPING GAINS IN CONSUMER PRICES MIGHT MEAN THAT INTEREST RATES ARE HEADED HIGHER LOW RATES HAVE BEEN AMONG THE STRONGEST UNDERPINNINGS OF THE STOCK MARKET FOR MONTHS THE LABOR DEPARTMENT REPORTED THAT ITS CONSUMER PRICE INDEX JUMPED 04 LAST MONTH HIGHER THAN THE 03 GAIN THAT WAS FORECAST THE DATA FOLLOWED A WORSETHANEXPECTED READING ON PRODUCER PRICES THAT WAS RELEASED WEDNESDAY THE FEAR IS THAT WITH HIGHER INFLATION COMES HIGHER RATES AND ULTIMATELY AN UNWILLINGNESS ON THE PART OF INVESTORS TO CONTINUE TO PAY THE MULTIPLES FOR STOCKS THAT THEY ARE PAYING TODAY SAID BRADLEY TURNER MARKET STRATEGIST AT MCDONALD & CO SECURITIES IF YIELDS ADVANCE ON INTERESTBEARING INVESTMENTS FEWER INVESTORS WILL BE ENTICED BY THE POTENTIALLY GREATER RETURNS AVAILABLE IN STOCKS THE STANDARD & POOR'S 500STOCK INDEX SKIDDED 557 OR 125 TO 43923 AND THE DOW JONES EQUITY MARKET INDEX LOST 542 OR 128 TO 41659 THERE WERE 289855730 SHARES TRADED YESTERDAY UP FROM WEDNESDAY'S 254543240 WHILE ANALYSTS SAID MUCH OF THE GAINS IN PRODUCER PRICES WERE TIED TO SPECIAL CIRCUMSTANCES SUCH AS A SURGE IN VEGETABLE PRICES BECAUSE OF POOR WEATHER CONDITIONS DAVID BLITZER CHIEF ECONOMIST AT STANDARD & POOR'S CORP SAID YESTERDAY'S CONSUMER PRICE REPORT SHOWED WIDESPREAD GAINS THE CPI REPORT MAKES ME A LITTLE NERVOUS THIS REPORT IS A CHALLENGE TO THE OPTIMIST ON INFLATION MR BLITZER SAID THE ECONOMIST SAID HE ISN'T YET READY TO SCRAP HIS FORECASTS FOR 30 TO 35 CONSUMER PRICE GROWTH THIS YEAR BUT THE RECENT DATA HAVE SHAKEN HIS CONFIDENCE MR TURNER SAID STOCK PRICES MAY INCH LOWER NEARTERM THE LOSSES THOUGH COULD ACCELERATE IF LONG BOND YIELDS MOVE AND HOLD ABOVE 7 AND SHORTTERM TREASURY BILL YIELDS CLIMB ABOVE 325 AMID ALL THE PESSIMISM BUYERS TURNED TO SHARES OF METAL PRODUCERS FOR A SECOND STRAIGHT DAY THEIR PRODUCT PRICES CAN GAIN ALONG WITH INFLATION PHELPS DODGE ROSE 1 5/8 TO 46 1/8 MAXXAM ADDED 7/8 TO 24 1/2 MAGMA COPPER INCREASED 1 1/8 TO 13 1/2 AND BRUSH WELLMAN ROSE 1/2 TO 11 7/8 AMONG GOLD MINING STOCKS BATTLE MOUNTAIN GOLD INCREASED 1/4 TO 8 1/4 AND HOMESTAKE MINING ADDED 3/8 TO 17 7/8 NEWMONT MINING LOST 1/2 TO 50 ON THE AMERICAN STOCK EXCHANGE ECHO BAY MINES ADDED 3/4 TO 11 1/4 AND PEGASUS GOLD JUMPED 1 1/4 TO 22 1/4 HMO AMERICA SURGED 7 7/8 TO 35 AFTER UNITED HEALTHCARE AGREED TO ACQUIRE THE CHICAGO HEALTH MAINTENANCE ORGANIZATION CONCERN THROUGH A STOCK SWAP EACH HMO AMERICA SHARE WILL BE EXCHANGED FOR 064 SHARE OF MINNETONKA MINN UNITED HEALTHCARE THAT STOCK WAS UNCHANGED AT 56 3/4 ROYAL DUTCH PETROLEUM CLIMBED 2 1/8 TO 93 1/8 ITS ROYAL DUTCH SHELL GROUP UNIT SAID PROFIT JUMPED 23 TO 945 MILLION 145 BILLION IN THE FIRST QUARTER ITS RESULTS WERE AIDED BY RECENT DEPRECIATION IN THE VALUE OF THE POUND A LOWER TAX RATE AND HIGHER NATURAL GAS PRICES WHITTAKER SLID 1 TO 13 1/8 OPPENHEIMER & CO ANALYST GARY CHIN LOWERED HIS INVESTMENT RATING ON THE STOCK TO MARKET PERFORMER FROM BUY SHARES OF THE LOS ANGELES MAKER OF ELECTRONIC COMMUNICATION AND CONTROL SYSTEMS WERE REMOVED FROM THE OPPENHEIMER RECOMMENDED LIST FEDERATED DEPARTMENT STORES ADDED 3/4 TO 22 OPPENHEIMER UPGRADED THE CINCINNATI COMPANY'S STOCK TO ANALYST BUY FROM MARKET PERFORMER FEDERATED GAINED 7/8 WEDNESDAY AFTER THE COMPANY POSTED IMPROVED FIRSTQUARTER EARNINGS COOPER TIRE & RUBBER SLID 4 1/8 TO 29 5/8 SHARES OF THE FINDLAY OHIO CONCERN WERE DOWNGRADED TO HOLD FROM BUY BY SMITH BARNEY GENERAL MOTORS CLASS H SHARES SKIDDED 1 TO 28 1/8 AFTER LEHMAN BROTHERS DOWNGRADED ITS RATING ON THE STOCK TO OUTPERFORM FROM BUY THE STOCK REPRESENTS THE PERFORMANCE OF THE AUTO MAKER'S HUGHES ELECTRONICS UNIT GM COMMON SLID 1 TO 40 1/4 FORD MOTOR MEANWHILE LOST 1 1/8 TO 54 1/2 AND CHRYSLER EASED 3/8 TO 42 5/8 REPORTS FROM THE MAJOR AUTO MAKERS SHOWED US CAR SALES REACHED A 64 MILLION UNIT ANNUAL RATE IN EARLY MAY DOWN FROM APRIL'S 69 MILLION RATE BUT IN LINE WITH EXPECTATIONS PHILIP MORRIS BROKE RANKS WITH OTHER CONSUMERPRODUCTS STOCKS GAINING 5/8 TO 50 5/8 MERRILL LYNCH ANALYST ALLAN KAPLAN RAISED HIS INTERMEDIATETERM RATING ON THE NEW YORK FOOD AND TOBACCO COMPANY'S STOCK TO ABOVE AVERAGE FROM NEUTRAL HE CITED AN EASING IN WORRIES THAT THE CIGARETTE BUSINESS WILL BE DEPRESSED BY A PRICE WAR AND BY HIGHER EXCISE TAXES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 052 TO 42791 THERE WERE 331 DECLINERS AND 220 ADVANCERS 9305140079 930514 POLITICS & POLICY DOUBTS ABOUT CLINTON'S LEADERSHIP ON BOSNIA ARE SIMILAR TO THOSE FACED BY BUSH IN GULF CRISIS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STARING AT THE THREAT OF A COSTLY WAR WITH AMERICAN LIVES AT RISK THE PRESIDENT FAILS TO EXPLAIN US POLICY TO THE PUBLIC AMERICA'S CLOSEST ALLIES MEANWHILE USE WASHINGTON'S LACK OF DIRECTION AS A FURTHER EXCUSE FOR DELAY THAT'S A PRETTY ACCURATE DESCRIPTION OF BILL CLINTON AND THE BOSNIA CRISIS TODAY IT'S ALSO A GOOD DESCRIPTION OF GEORGE BUSH AND THE GULF CRISIS TWO AND A HALF YEARS AGO WITH TELESCOPIC HINDSIGHT AND A DECISIVE VICTORY AMERICANS TEND TO REMEMBER THE RUNUP TO THE GULF WAR AS A STRAIGHT AND EASY SPRINT IT WASN'T THAT SUGGESTS THAT PRESIDENT CLINTON ALREADY BEING BATTERED BY PUNDITS AND POLITICIANS FOR A LACK OF DECISIVENESS STILL HAS SOME CHANCE OF COMING OUT OF THE BOSNIA CRISIS LOOKING LIKE A LEADER FOR THAT TO HAPPEN HOWEVER HE MUST SETTLE ON A POLICY SOON AND THE POLICY MUST WORK A TALL ORDER IN BOSNIA WHERE AT THIS LATE DATE EVEN THE BEST SETTLEMENT WILL BE LESS THAN JUST AND TIME IS RUNNING OUT WITH THE BOSNIAN SERBS SEIZING MORE TERRITORY EACH DAY THE WEST PROCRASTINATES ABOUT THE SAME TIME IN THE GULF CRISIS BUSH WAS CLEARLY IN TROUBLE HE WAS DISTRACTED BY THE BUDGET DEFICIT HE WAS HAVING PROBLEMS EXPLAINING TO AMERICANS WHAT WAS AT STAKE EVERYBODY WAS RAISING QUESTIONS ABOUT HIS LEADERSHIP SAYS DAVID HANSEN A MEMBER OF THE BUSH POLLING TEAM DURING THAT TIME AND NOW RESEARCH DIRECTOR AT MARKET STRATEGIES INC HE WAS ABLE TO RECTIFY THAT BY JAN 17 1991 WHEN THE WAR STARTED HE ADDS OF COURSE HE GOT A LOT OF HELP FROM SADDAM HUSSEIN MR HANSEN POINTS OUT THAT PUBLIC APPROVAL FOR THE TWO PRESIDENTS' HANDLING OF THEIR CRISES IS ALSO ROUGHLY COMPARABLE ONCE YOU CORRECT FOR MR CLINTON'S SMALLER ELECTORAL MANDATE AT THAT TIME BUSH WAS GETTING IN THE HIGH 50S FOR HANDLING IRAQ AND CLINTON'S JOB HANDLING ON BOSNIA IS SOMEWHERE BETWEEN 40 AND 45 HE'S LOWER OVERALL BUT HE'S ALSO A GUY THAT ONLY WON WITH 4243 OF THE VOTE HE SAYS MEANWHILE 55 OF THOSE POLLED IN A SURVEY BY PENN & SCHOEN ASSOCIATES A DEMOCRAT POLLING GROUP SAID THEY THOUGHT IT WAS IN AMERICA'S INTEREST TO STOP THE ETHNIC CLEANSING BECAUSE IT IS WRONG AND IT THREATENS THE PEACE IN EUROPE FOR ALL THAT MR CLINTON HAS YET TO EXPLAIN HIS POLICY OR HIS GOALS IN BOSNIA TO THE PUBLIC AND HAS SO FAR FAILED TO RALLY SUPPORT ABROAD IF MR CLINTON DOESN'T SEIZE CONTROL OF THE BOSNIA CRISIS SOON IT COULD DO LASTING DAMAGE TO HIS CREDIBILITY AT HOME AND ABROAD MEANWHILE IT'S NOT CLEAR HOW MUCH LONGER BOSNIA'S MUSLIMS CAN HOLD OUT WITH THE SERBS SEIZING MORE TERRITORY EVERY DAY THE WEST PROCRASTINATES BOSNIA'S CENTURIESOLD ETHNIC CONFLICT IS FAR MORE COMPLEX THAN THE GULF CRISIS IN THE GULF THE PRINCIPLES AND THE STAKES WERE COMPARATIVELY CLEAR A BULLYING DICTATOR INVADED A SMALL DEFENSELESS NEIGHBOR WHICH JUST HAPPENED TO HAVE ONE OF THE WORLD'S RICHEST OIL DEPOSITS WHILE THE SUFFERING IN BOSNIA IS AT LEAST AS HORRIFIC THE BOUNDARIES ARE LESS CLEAR PRESIDENT CLINTON SO FAR HAS BEEN UNABLE TO DECIDE WHETHER BOSNIA IS A CIVIL WAR OR AN INTERNATIONAL CONFLICT USING ALTERNATE EXPLANATIONS ON ALTERNATE DAYS AND EVEN WITH CLEAR PRINCIPLES AND AN ENEMY RIGHT OUT OF CENTRAL CASTING MR BUSH STILL HAD A HARD TIME ARTICULATING WHY AMERICANS SHOULD GO TO WAR IN THE GULF JOBS OIL NUCLEAR WEAPONS AND HITLER REVISITED WERE ONLY A FEW OF THE TACKS TRIED AND DISCARDED EVEN THE POLICY WAS CONFUSING THE SAME US TROOPS SENT TO DEFEND SAUDI ARABIA IN AUGUST WERE CHARGED BY NOVEMBER WITH REVERSING IRAQI AGGRESSION IN KUWAIT COMMUNICATIONS IS CLEARLY A BIG PART OF MR CLINTON'S PROBLEM AS WELL FOR MORE THAN A MONTH NOW THE WHITE HOUSE HAS LED THE PUBLIC THE CONGRESS AND ITS CLOSEST ALLIES ON A ROLLERCOASTER RIDE REPEATEDLY PROMISING A SWIFT DECISION ON BOSNIA AND A PUBLIC EXPLICATION ONLY TO BACK AWAY WITHOUT EXPLANATIONS LATE LAST WEEK MR CLINTON CALLED ON THE ALLIES TO JOIN THE US IN TAKING SWIFT AND DECISIVE ACTION ONLY TO HAVE HIS SPOKESWOMAN TELL REPORTERS A FEW DAYS LATER THAT THE POLICY WAS NOW ON HOLD TWO DAYS AFTER THAT MR CLINTON RAISED EXPECTATIONS AGAIN TELLING A RADIO TALK SHOW I THINK THAT YOU'LL SEE THAT OVER THE NEXT FEW DAYS WE WILL BE ABLE TO TAKE SOME MORE STEPS THAT WILL MAKE PEACE MORE LIKELY AND WILL MAKE THE CONFINING OF THE CONFLICT MORE LIKELY MR CLINTON IS AWARE THAT HE HAS A PROBLEM SAYS SEN RICHARD LUGAR R IND WHO WARNED THE PRESIDENT IN A WHITE HOUSE MEETING THIS WEEK THAT MIXED SIGNALS COULD MAKE IT HARDER FOR HIM TO SELL HIS POLICY BOTH AT HOME AND ABROAD THE PRESIDENT UNDERSTOOD WHAT I WAS SAYING THAT THE LAST FEW DAYS COULD BE CHARACTERIZED AS A SENSE OF DRIFT AND THAT'S NOT A VERY GOOD IDEA MR LUGAR SAYS HE CAME AWAY FROM THE MEETING HOWEVER PERSUADED THAT THE PRESIDENT HAS A CLEAR POLICY FOR BOSNIA AND THAT HE WILL SOON BE READY TO REVEAL IT BUT SOME PROBLEMS ARE PECULIAR TO THE CONFLICT AND MR CLINTON'S STYLE OF PROBLEMSOLVING PARTICULARLY HIS ALREADYFAMOUS DESIRE TO ALWAYS GET IT RIGHT HOLDING ENDLESS MEETINGS TO DISSECT THE DETAILS OF EVERYTHING FROM HEALTHCARE REFORM TO THE BUDGET TO BOSNIA WHILE AMERICAN PRESIDENTS ALWAYS SAY THEY WANT TO CONSULT THEIR ALLIES AND THE CONGRESS BEFORE MAKING TOUGH FOREIGN POLICY DECISIONS FEW EXCEPT MR CLINTON EVER REALLY MEAN IT AND AS MR CLINTON IS FINDING OUT MORE CONSULTATIONS RARELY MEAN MORE AGREEMENT AMERICA'S RELATIONSHIP WITH ITS CLOSEST ALLIES IS ALSO FAR DIFFERENT ON THE BOSNIA CRISIS THAN IT WAS DURING THE GULF CRISIS IN GOOD PART BECAUSE OF PRESIDENT BUSH WHO PRONOUNCED THE FORMER YUGOSLAVIA A EUROPEAN PROBLEM WHAT MR BUSH ASKED OF THE ALLIES IN THE GULF WAS CONSIDERABLE THAT THEY SEND THEIR TROOPS INTO BATTLE BUT WHAT HE OFFERED IN RETURN WAS EVEN MORE THE US WOULD PROVIDE THE BULK OF THE MILITARY FORCE AND RUN THE OPERATION BRITAIN UNDER MARGARET THATCHER'S LEADERSHIP WAS ON BOARD FOR TOUGHER ACTION FROM THE START EVEN THEN OTHER EUROPEAN ALLIES TEMPORIZED FOR MONTHS ARGUING FOR SANCTIONS AND MORE NEGOTIATIONS WHEN MR CLINTON TRIES TO RALLY ALLIED SUPPORT FOR LIMITED MILITARY ACTION IN BOSNIA HE IS ASKING MUCH THE SAME BUT OFFERING A WHOLE LOT LESS THIS TIME IT IS THE EUROPEANS WHO ALREADY HAVE THE TROOPS ON THE GROUND AND AS THEY POINT OUT THESE FORCES WOULD BEAR MOST OF THE RISK IF AS THE PRESIDENT SUGGESTS THE ARMS EMBARGO ON THE BOSNIAN MUSLIMS IS LIFTED AND AIR STRIKES ARE LAUNCHED GIVEN THE HIGHER STAKES THE ALLIES ARE UNLIKELY TO SIGN ON UNTIL MR CLINTON STARTS USING PRESSURE RATHER THAN CONSULTATION AS HIS APPROACH A POINT MR BUSH ALSO CAME TO IN THE LAST WEEKS BEFORE THE WAR IF WE DON'T TELL THE ALLIES WHAT WE WANT TO HAPPEN IN NO UNCERTAIN TERMS THEY'LL NEVER DECIDE SAYS MORTON ABRAMOWITZ PRESIDENT OF THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE JUDGING FROM THE POLLS AND MR BUSH'S EXPERIENCE PRESIDENT CLINTON STILL HAS TIME TO WIN PUBLIC SUPPORT FOR A STRONGER COURSE OF ACTION IN BOSNIA ALTHOUGH BOSNIA ITSELF MAY NOT IF MR CLINTON DOES FINALLY DECIDE ON MILITARY ACTION IN BOSNIA THAT DUAL CASE OF MULTILATERAL ACTION AND HUMANITARIAN INTEREST WILL SERVE HIM BEST SAYS STANLEY GREENBERG MR CLINTON'S POLLSTER AND ONCE MILITARY ACTION STARTS THAT SUPPORT WILL ONLY GROW HE PREDICTS I WATCHED A PUBLIC THAT WAS DIVIDED BEFORE THE GULF WAR I WATCHED IN THE COURSE OF A NIGHT WHEN THE AIR WAR BEGAN A 20POINT SHIFT IN FAVOR OF THE ACTION HE SAYS OF COURSE FROM THAT MOMENT THE ENTIRE GULF CONFLICT LASTED SIX WEEKS 9305140078 930514 SOUTHWEST GAS NET ADVANCES BY 16 MANAGERS SHUFFLED BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SOUTHWEST GAS CORP POSTED A 16 RISE IN FIRSTQUARTER NET INCOME RAISED ITS DIVIDEND 11 AGREED TO SELL ITS ARIZONA THRIFT OPERATIONS AND ANNOUNCED TOP MANAGEMENT CHANGES MICHAEL O MAFFIE THE COMPANY'S 45YEAROLD PRESIDENT WAS ELECTED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER HE SUCCEEDS KENNY C GUINN 56 WHO WAS NAMED CHAIRMAN MR GUINN IN TURN SUCCEEDS CLARK J GUILD JR WHO TURNS 72 TODAY MR GUILD REMAINS ON THE LAS VEGAS NATURAL GAS AND THRIFT CONCERN'S BOARD AS CHAIRMAN OF ITS EXECUTIVE COMMITTEE HE IS EXPECTED TO RETIRE NEXT YEAR SOUTHWEST GAS SAID THE EXECUTIVE CHANGES WERE PART OF A SUCCESSION PLAN THAT HAD BEEN IN PLACE FOR A COUPLE OF YEARS THIS IS JUST THE NORMAL EXECUTION OF THAT PLAN A SPOKESMAN SAID THE PLAN HADN'T BEEN DISCLOSED OUTSIDE THE COMPANY HE SAID IN RESPONSE TO A QUESTION THE CHANGES CAUGHT ANALYSTS BY SURPRISE THEY SPECULATED THAT MR GUINN MIGHT HAVE AGREED TO STEP DOWN AT A TIME WHEN THE COMPANY IS FOCUSING MORE ON ITS UTILITY OPERATIONS AND BACKING AWAY FROM ITS TROUBLED PRIMERIT THRIFT MR GUINN WAS CHIEF EXECUTIVE OF THE BANK AT THE TIME IT WAS ACQUIRED BY SOUTHWEST IN LATE 1986 MR MAFFIE AN ACCOUNTANT JOINED SOUTHWEST AS TREASURER IN 1978 HE HAS SERVED IN VARIOUS FINANCIAL POSTS AND WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER IN 1988 SOUTHWEST GAS SAID HE WILL DROP THE CHIEF OPERATING OFFICER TITLE NEITHER MR GUINN NOR MR MAFFIE RETURNED CALLS SEEKING COMMENT SEPARATELY PRIMERIT BANK SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL ITS SEVEN ARIZONA BRANCHES TO WORLD SAVINGS & LOAN ASSOCIATION OF OAKLAND CALIF TERMS WEREN'T DISCLOSED THE BRANCHES WERE SOLD AT A SMALL LOSS THAT WILL BE OFFSET IN A COUPLE OF YEARS WITH REDUCED OPERATING EXPENSES THE SPOKESMAN SAID PRIMERIT ISN'T ACTIVELY TRYING TO SELL ITS 25 NEVADA BRANCHES BUT IF A REASONABLE OFFER WERE TO SURFACE WE WOULD TAKE A CLOSE LOOK AT IT THE SPOKESMAN SAID NET INCOME IN THE QUARTER INCREASED TO 171 MILLION OR 82 CENTS A SHARE FROM 148 MILLION OR 71 CENTS A SHARE REVENUE FELL 83 TO 2206 MILLION FROM 2406 MILLION THE PROFIT IMPROVEMENT LARGELY REFLECTS A 3 MILLION BENEFIT FROM ADOPTION OF A NEW ACCOUNTING STANDARD BY THE PRIMERIT BANK UNIT GASRELATED PROFITS DROPPED BECAUSE OF A LOWER OPERATING MARGIN AND HIGHER EXPENSES THE COMPANY SAID THE QUARTERLY DIVIDEND WAS BOOSTED TO 195 CENTS A SHARE FROM 175 CENTS PAYABLE SEPT 1 TO STOCK OF RECORD AUG 16 THE PAYOUT HAD BEEN 35 CENTS A SHARE BEFORE IT WAS HALVED IN MAY 1991 THE DIVIDEND INCREASE FULFILLS A COMMITMENT MADE TO SHAREHOLDERS WHEN THE PAYOUT WAS CUT A SPOKESMAN SAID WE FEEL THE WORST IS BEHIND US ESPECIALLY IN TERMS OF THE BANK IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SOUTHWEST GAS WAS UNCHANGED AT 18 9305140077 930514 REVIEW & OUTLOOK EDITORIAL DIOGENES HITS WASHINGTON IN THE CASE OF BOB PACKWOOD ABSURDITY IS BUT A WAY STATION WHAT WAS ONCE A CASE OF ALLEGED SEXUAL HARASSMENT RESURFACED THIS WEEK AS AN ALLWASHINGTON DISCUSSION ON WHETHER POLITICIANS SHOULD BE REMOVED FROM OFFICE FOR BEING DISHONEST DURING CAMPAIGNS A GROUP OF OREGONIANS HAVE ASKED THE SENATE TO REVOKE SEN PACKWOOD'S REELECTION VICTORY LAST NOVEMBER ON THE GROUNDS THAT HE LIED DURING THE RACE IF THAT'S THE STANDARD JAY LENO JOKED BILL CLINTON COULD GET THE DEATH PENALTY AT THIS POINT DIOGENES SEARCHED FOR AN HONEST MAN THE INTERESTS GROUPS THAT HAVE COALESCED TO TRY TO EXPEL SEN PACKWOOD LED BY THE DEMOCRAT HE DEFEATED IN 1986 ARE MORE PUNITIVE WHILE THE SENATE ETHICS COMMITTEE SECRETLY INVESTIGATES THE HARASSMENT CHARGES THEMSELVES THE INTEREST GROUPS HAVE PETITIONED THE SENATE RULES COMMITTEE TO UNSEAT SEN PACKWOOD ON THIS LYING MATTER DURING THE CAMPAIGN SEN PACKWOOD DENIED THAT THERE WAS A PRESS INVESTIGATION INTO ALLEGATIONS OF HARASSMENT AND IN SO DOING HIS CRITICS SAY HE DEFRAUDED THE VOTERS OF OREGON IF SEN PACKWOOD IS FOUND GUILTY OF ETHICS VIOLATIONS IT WOULD TAKE A TWOTHIRDS MAJORITY AND THUS SOME REPUBLICAN CROSSOVERS TO EXPEL HIM FROM THE SENATE IF HE IS FOUND GUILTY OF A RULES VIOLATION FRAUD A SIMPLE MAJORITY WOULD DO GETTING THROWN OUT OF OFFICE FOR BEING FACTUALLY FLEXIBLE IN THE HEAT OF A CAMPAIGN IS SOMETHING THAT IS BOUND TO MAKE POLITICIANS OF ALL STRIPES SIT UP STRAIGHT AND STARE IN HORROR IF SUCH A PRECEDENT WERE SET THEN EVERY CAMPAIGN WOULD BE CHALLENGED BY THE LOSER THE SENATE WOULD SPEND ALL ITS TIME INVESTIGATING ITSELF AND THE LAST SENATOR WOULD EXPEL HIMSELF AND THEN TURN OUT THE LIGHTS ONE THING THE SENATORS ON THE RULES COMMITTEE DID NOT DO IS TELL THE ACTIVISTS THAT THEIR IDEA IS LOOPY AND THAT THEY SHOULD STICK TO THE SUBSTANCE OF THIS CASE THE HARASSMENT CHARGES THAT'S BECAUSE THE GHOST OF ANITA HILL HUNG OVER THE CHAMBER IT IS NOW WRITTEN IN STONE SOMEWHERE THAT THE SENATE WAS INSENSITIVE TO MS HILL WHENEVER SEXUAL HARASSMENT IS MENTIONED OR WHENEVER THE GUARDIANS OF SEXUAL HARASSMENT VEER OFF INTO STRANGE TERRITORY AS HERE THEN PENITENT SENSITIVITY MUST BE SHOWN THUS THE SENATORS TRIED TO CONVEY THAT THE ACTIVISTS' IDEA WAS LOOPY BUT WHILE WRAPPING THEIR LANGUAGE IN TERMS OF OBSEQUIOUS SENSITIVITY THE STRONGEST ANYONE GOT WAS CALIFORNIA DEMOCRAT SEN DIANNE FEINSTEIN WHO SAID THAT INVESTIGATING POLITICIANS FOR CAMPAIGN DISHONESTY WOULD OPEN A PANDORA'S BOX MEMO TO SEN FEINSTEIN PANDORA'S BOX IS POLITICALLY INCORRECT YOU JUST LOST 10000 VOTES IN BERKELEY ONE THING THAT SEEMS TO HAPPEN IN THESE CASES IS THAT WHEN SOMEONE IS ACCUSED OF HARASSMENT HE OR SHE BECOMES IN THE MINDS OF SOME ACTIVISTS THE EVIL OF HARASSMENT ITSELF AND SO MUST BE EXORCISED AT ALL COSTS OREGONIANS STILL SEEM TO REGARD SEN PACKWOOD AS A HUMAN BEING DESERVING OF HIS DAY IN COURT THEY ARE EVENLY SPLIT ON WHETHER HE SHOULD RESIGN ACCORDING TO POLLS THE PROBLEM HERE IS WITH THE SENATORS WHO LET THE ACTIVIST MOB SET THE TENOR OF THIS EXORCISM AND WHO LET MONDAY'S HEARING TAKE PLACE WITH THE ENSUING PUBLICITY AS ANYBODY WHO SAW THE LINDA BLAIR MOVIE KNOWS EXORCISM RITES ARE WEIRD THERE IS PROBABLY MORE ABSURDITY TO COME 9305140076 930514 BUSINESS BRIEF TODAY'S MAN INC CLOTHING RETAILER SAYS NET NEARLY DOUBLED FOR PERIOD TODAY'S MAN INC SAID NET INCOME FOR ITS FISCAL FIRST QUARTER NEARLY DOUBLED BOOSTED BY SALES FROM LARGE NEW MENSWEAR STORES IN NEW YORK AND NEW JERSEY THE MOORESTOWN NJ MENSWEAR RETAILER SAID THAT PROFIT FOR THE QUARTER ENDED MAY 1 ROSE TO 245000 OR THREE CENTS A SHARE FROM 122600 OR TWO CENTS A SHARE A YEAR EARLIER SALES ROSE 26 TO 311 MILLION SAMESTORE SALES OR SALES FOR STORES OPEN A YEAR OR MORE ROSE 56 FOR THE QUARTER CHIEF FINANCIAL OFFICER ZEEV SHENKMAN ATTRIBUTED THE STRENGTH TO TWO BIG NEW STORES IN HUNTINGTON NY AND EAST HANOVER NJ THE COMPANY NOW HAS 18 SUCH STORES COMPARED WITH 14 A YEAR EARLIER 9305140073 930514 GPA IS WARY OF MEETING BOND PAYOUTS DESPITE ACCORD WITH GE'S CAPITAL UNIT BY STEVEN LIPIN AND BRIAN COLEMAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK GPA GROUP PLC HELD OFF PROMISING TO MEET ITS COMING BOND PAYMENTS DESPITE THIS WEEK'S AGREEMENT WITH A GENERAL ELECTRIC CO UNIT TO SHORE UP THE IRISH COMPANY'S FINANCES GPA'S CAUTIOUS STANCE CAME AFTER THE COMPANY'S BOND PRICES MORE THAN DOUBLED AS NEWS OF THE GE ACCORD FUELED CONFIDENCE THAT THE AIRCRAFTLEASING CONCERN WOULD MAKE ABOUT 50 MILLION IN BOND PAYMENTS DUE NEXT WEEK AND 150 MILLION DUE IN JUNE WHILE THE COMPANY IS CLOSE TO LINING UP 100 MILLION IN TEMPORARY BANK FINANCING TO HELP PAY THE DEBTS GPA TOLD UNSECURED CREDITORS HERE THAT IT FIRST WANTS ENOUGH EVIDENCE THAT BANKS WILL RESCHEDULE 1 BILLION IN DEBT AND THAT SHAREHOLDERS WILL PROVIDE MORE EQUITY THE COMPANY EXPECTS TO MAKE A FINAL DECISION ON THE BOND PAYMENTS WHEN ITS BOARD MEETS MONDAY DEALS WITH BANKS AND EQUITY INVESTORS WOULDN'T CLOSE UNTIL NEXT MONTH THE MEETING WITH BONDHOLDERS CAME ONE DAY AFTER GPA AGREED TO SELL 45 PLANES TO GE CAPITAL CORP FOR 135 BILLION AND CREATE CLOSE TIES BETWEEN THE TWO COMPANIES GE CAPITAL ALSO HAS A FOURYEAR OPTION TO PURCHASE A MAJORITY STAKE IN GPA THE SALES HOWEVER ARE CONDITIONED ON RECEIVING 150 MILLION FROM SHAREHOLDERS AND AN AGREEMENT WITH BANK LENDERS TO DEFER PRINCIPAL PAYMENTS IF COMPLETED THE DEAL COULD PUT AN END TO GPA'S 11MONTHOLD RESTRUCTURING EFFORT DUBBED PROJECT REBOUND AND RESTORE HOPE TO THE TROUBLED AEROSPACE INDUSTRY IT WOULD SAVE FROM THE BRINK OF BANKRUPTCY THE WORLD'S LARGEST AIRCRAFTLEASING COMPANY SOOTHE THE NERVES OF PLANE MAKERS WORRIED ABOUT A MAJOR CUSTOMER AND ENSURE SMALL AIRLINES AROUND THE WORLD OF A CONTINUED SOURCE OF CHEAP PLANES THE ACCORD WITH GE PROMPTED MOODY'S INVESTORS SERVICE INC TO PUT GPA'S DEBT ON REVIEW FOR POSSIBLE UPGRADE ABOUT 18 BILLION IN DEBT CURRENTLY RATED CAA IS AFFECTED ALTHOUGH AN ACCORD COULD SAVE GPA FROM A POSSIBLE BANKRUPTCY FILING GE CAPITAL APPEARS TO BE THE BIGGEST WINNER SHAREHOLDERS WOULD FARE THE WORST SINCE THEIR HOLDINGS COULD BE DILUTED THIS SEEMS LIKE IT WOULD HAVE NO DOWNSIDE FOR GE CAPITAL AND PLENTY OF UPSIDE SAID KEITH MCMULLEN JOINT MANAGING DIRECTOR FOR CONSULTANTS AVMARK INTERNATIONAL LTD IF BY SOME MIRACLE GPA TAKES OFF AGAIN IT LOOKS LIKE GE CAPITAL CAN PICK IT UP AT AN AGREED PRICE IF GPA COLLAPSES IT'S NO BIG DEAL FOR GE CAPITAL HE SAID GE CAPITAL IS WARY OF TAKING CONTROL OF THE COMPANY NOW GIVEN ITS MASSIVE DEBT LOAD BUT IF GPA IS ABLE TO WINNOW ITS HUGE 55 BILLION IN DEBT AND THE AIRCRAFT INDUSTRY SHOWS SIGNS OF LIFE GE HAS THE OPTION OF EXPANDING ITS AIRCRAFT BUSINESS JUST AS THE INDUSTRY'S OUTLOOK IMPROVES THEY ARE THE MASTERS OF THE 11THHOUR SQUEEZE PLAY SAID ONE BANK LENDER EVENTUALLY AN ACQUISITION COULD CREATE A TITAN IN THE AIRCRAFT LEASING BUSINESS GPA IS THE LARGEST LESSOR OF MODERN AIRCRAFT WITH A FLEET OF MORE THAN 480 PLANES GE CAPITAL IS ONE OF THE LARGEST LESSORS OF OLDER AIRPLANES BOTH ON ITS OWN AND THROUGH ITS WHOLLY OWNED SUBSIDIARY POLARIS AIRCRAFT LEASING CORP WHICH HAS A FLEET OF ABOUT 400 PLANES ITS PARENT GE IS ONE OF THE WORLD'S LEADING AIRCRAFT ENGINE MAKERS MEANWHILE THE COMPANY BEGAN AN AGGRESSIVE CAMPAIGN TO WIN OVER BANK CREDITORS AND EXISTING SHAREHOLDERS TO THE NEW PLAN THE COMPANY AND ITS LEAD LENDERS ARGUE THAT THIS IS THE BESTCASE SCENARIO FOR THE TROUBLED COMPANY ALTHOUGH THERE ARE BANKS WARY OF ALLOWING BOND PAYMENTS TO BE MADE EVERY BANK MUST SIGN OFF ON THE PLAN TO LOOSEN FINANCIAL COVENANTS AND DEFER 1 BILLION IN PAYMENTS UNTIL 1996 IN THE END IT'S THE PRICE YOU PAY TO SAVE THE COMPANY SAID ONE OF THE COMPANY'S BIGGEST BANK CREDITORS THE BEST OPTION IS THE GE DEAL CURRENT SHAREHOLDERS MAY OBJECT TO THE DEAL BECAUSE IT WILL SEVERELY DILUTE THEIR STAKES THEY ALSO MAY FEAR THAT GE CAPITAL HAS BOUGHT UP GPA'S MOST ATTRACTIVE ASSETS THUS RAISING THE RISK FOR LONGTERM INVESTORS MANY SHAREHOLDERS ALREADY HAVE WRITTEN OFF THEIR HOLDINGS AS WORTHLESS STILL PEOPLE CLOSE TO THE COMPANY SAY THEY ARE ONLY 50 MILLION AWAY FROM THE 150 MILLION IN NEW EQUITY NECESSARY FOR THE DEAL TO PROCEED 9305140072 930514 AUCTIONS PAINT A BRIGHTER PICTURE OF THE ART MARKET BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE ART MARKET IS BACK AFTER TUMBLING 50 OVER ROUGHLY THE PAST TWO YEARS PRICES OF IMPRESSIONIST MODERN AND CONTEMPORARY ART ARE HEADING UP AGAIN THOUGH NOT AT THE FRENZIED PACE OF THE 1980S ART BOOM IN THE PAST TWO WEEKS AUCTION HOUSE GIANTS CHRISTIE'S INTERNATIONAL PLC AND SOTHEBY'S HOLDINGS INC SOLD 178 MILLION OF PAINTINGS AND SCULPTURES AT THEIR BIG SPRING SALES 38 MILLION MORE THAN THEY RAISED A YEAR AGO THE STAR OF THE SALES A MASTERFUL PAUL CEZANNE STILL LIFE CLIMBED AN EIGHTBIDDER BATTLE TO 286 MILLION TUESDAY THAT WAS THE HIGHEST PRICE PAID FOR A PAINTING IN THREE YEARS AND ON ITS HEELS PRICES FOR SECONDTIER IMPRESSIONIST AND MODERN ART ALSO MOVED UP THE ART MARKET HAS GAINED AN ENORMOUS AMOUNT OF CONFIDENCE AND MOMENTUM FROM SOME OF THE HIGH PRICES PAID AT THE SPRING SALES SAID DIANA D BROOKS PRESIDENT OF SOTHEBY'S WORLDWIDE AUCTION DIVISION THE JOKE IS OVER THE FEAR THAT CONTEMPORARY ART WAS ONE BIG JOKE IS GONE SAID CONTEMPORARY ART DEALER JOHN GOOD THE VOLATILITY IS THERE BECAUSE PEOPLE STILL AREN'T SURE OF CERTAIN ARTISTS BUT PEOPLE ARE WILLING TO BUY ART AGAIN BUT UNLIKE THE FEVERISH ART BOOM OF THE 1980S THIS RISING TIDE ISN'T LIFTING ALL BOATS THE SAME BIDDERS WHO CHASED A FIRSTCLASS PIERREAUGUSTE RENOIR GARDEN SCENE TO 67 MILLION THIS WEEK MORE THAN DOUBLE ITS PRESALE ESTIMATE LET FOUR OTHER RENOIRS WHIRL RIGHT BY ON THE AUCTION HOUSE TURNTABLES WITHOUT MEETING THE SELLERS' MINIMUM PRICES AND IN THE CONTEMPORARY ART MARKET CASUALTIES INCLUDED POPART MASTER ANDY WARHOL '80S WUNDERKIND JULIAN SCHNABEL AND A SLATE OF ONCE SUPERHOT GERMAN ARTISTS WHO GOT CLOBBERED ACCORDING TO NEW YORK ART DEALER ANDRE EMMERICH ART DEALERS AND COLLECTORS WERE CLOSELY WATCHING THE SPRING SALES IN NEW YORK FOR SIGNS THAT THE MARKET HAS EMERGED FROM THE BRUTAL THREEYEAR SLUMP THAT BEGAN IN MID1990 THE ART MARKET UNLIKE THE STOCK MARKET DOES MUCH OF ITS BUSINESS IN A FEW CONCENTRATED BURSTS OF BUYING THAT SET PAINTINGS' PRICE LEVELS FOR MONTHS TO COME THE MARKET'S BUDDING RECOVERY IS ILLUSTRATED BY RESULTS FOR SOME WORKS THAT WERE MAKING RETURN TRIPS TO THE AUCTION BLOCK CONSIDER RICHARD ARTSCHWAGER'S 1963 FORMICAANDWOOD SCULPTURE OF A STUNTED CHAIR CONSIDERED THE ARTIST'S WITTY COMMENT ON WHAT IS FUNCTIONAL VS WHAT IS ART PROMINENT DETROIT COLLECTORS FLORENCE AND BROOKS BARRON ACQUIRED THE WORK FROM THE ARTIST IN 1963 AND IT WAS INCLUDED IN MAJOR 1980S EXHIBITIONS OF CONTEMPORARY ART IN 1990 IT SOLD AT AUCTION TO ADVERTISING MOGUL CHARLES SAATCHI WHO PAID 203500 THE SCULPTURE HIT THE AUCTION BLOCK LAST WEEK AT SOTHEBY'S WITH AN ESTIMATE THAT HAD THE ART RECESSION FIGURED IN 80000 TO 100000 BUT IT SOLD FOR 178500 OVERALL MOST ART PRICES ARE STILL WELL BELOW THE STRATOSPHERIC LEVELS SET IN 1989 BEFORE THE ART BOOM WENT BUST A GOOD CHUNK OF WHAT SOLD IN THE PAST TWO WEEKS CHANGED HANDS AT PRICES JUST UNDER THE AUCTION HOUSES' LOW ESTIMATES THAT WAS A TIPOFF THAT SELLERS WERE FLEXIBLE IN THEIR SECRET RESERVES THE MINIMUM BID THEY WILL ACCEPT FOR THEIR ARTWORK STILL FOR THE FIRST TIME IN MONTHS ART DEALERS AND COLLECTORS ARE DELIGHTED THAT THE MARKET HAS SOME DEGREE OF STABILITY AND THEY ARE MAKING FEWER AND FEWER NOSTALGIC COMPARISONS TO THE GOOD OLD DAYS OF THE '80S A HANDFUL OF ARTISTS' MARKETS WERE RESHUFFLED IN THESE MILLION DOLLAR SALES PRICES FOR MODERN MASTERS MARC CHAGALL AND JEAN DUBUFFET REBOUNDED AND PRICES FOR ALEXANDER CALDER MOBILES HELD UP DESPITE A FLOOD OF WORKS HITTING THE MARKET OVERALL THE SALES OF IMPRESSIONIST AND MODERN PAINTINGS WHICH INVOLVE ESTABLISHED 19TH AND EARLY 20THCENTURY ARTISTS FARED BETTER THAN MORE RECENT ART BIDDERS FOR CONTEMPORARY ART SHOWED MERCILESS SELECTIVITY SITTING ON THEIR HANDS AND LEAVING PAINTING AFTER PAINTING UNSOLD ON THE AUCTION BLOCK THE FEW WORKS THEY CHASED SOMETIMES PAYING DOUBLE THEIR PRICE ESTIMATES WERE THOSE THAT HADN'T BEEN SHOPPED AROUND THAT REPRESENTED THE FIRST TIME AN ARTIST EXECUTED AN IDEA THAT WAS TO BECOME HIS TRADEMARK OR THAT HAVE BEEN OWNED BY PROMINENT COLLECTORS AND EXHIBITED AT MUSEUMS AN EARLY SCULPTURE BY TOP MINIMALIST ARTIST DONALD JUDD A STACK OF STAINLESS STEEL SHELVES 10FEET HIGH BROUGHT TWICE THE AUCTION HOUSE'S EXPECTATIONS SELLING FOR 233500 THE CENTERPIECE OF THE SOTHEBY'S CONTEMPORARY SALE WAS THE WARHOL COLLECTION OFFERED FOR SALE BY FREDERICK HUGHES THE ARTIST'S LONGTIME FRIEND MANAGER AND EXECUTOR OF HIS ESTATE MR HUGHES OFFERED 10 WARHOLS MOSTLY FROM EARLY IN THE ARTIST'S CAREER ONLY TWO SOLD A BLOW TO THE CONTEMPORARY ART WORLD WHICH TREATS WARHOLS AS AN ESTABLISHED CURRENCY OF THE BILLIONDOLLAR INTERNATIONAL ART MARKET ART DEALERS SAID WARHOL'S ARTISTIC STYLE HAS BOOBYTRAPPED HIS OWN LEGACY THE SILKSCREENING PROCESS HE USED MOST FREQUENTLY FACILITATED MULTIPLE WORKS ONLY SOME OF WHICH WERE OKAYED BY THE ARTIST WHILE MR HUGHES WAS A CLOSE FRIEND OF WARHOL'S ART DEALERS SAID THE WORKS WERE DOOMED BECAUSE THE WORKS WEREN'T SIGNED BECAUSE SOME HAD PREVIOUSLY BEEN OFFERED FOR SALE PRIVATELY AT GALERIE BISCHOFBERGER IN ZURICH AND BECAUSE ONLY ONE HAD BEEN INCLUDED IN THE EXHAUSTIVE 1989 RETROSPECTIVE OF WARHOL'S WORK AT NEW YORK'S MUSEUM OF MODERN ART SOTHEBY'S MRS BROOKS FIRMLY DENIED THAT THE AUCTION HOUSE OFFERED MR HUGHES A GUARANTEED MINIMUM PRICE FROM THE COLLECTION'S SALE BUT SHE DECLINED TO COMMENT ON WHETHER MR HUGHES MAY HAVE BEEN GIVEN AN ADVANCE A LOAN THAT ONLY HAS TO BE REPAID FROM THE PROCEEDS OF THE SALE OF THE WARHOLS OR ADDITIONAL ART AND DOESN'T HAVE TO BE REPAID IF THE ART DOESN'T SELL OF THE TWO AUCTION RIVALS SOTHEBY'S RAISED MORE MONEY BUT CHRISTIE'S SOLD MORE ART SOTHEBY'S HELD ITS MAJOR EVENING SALES FIRST AND ART DEALERS WERE SHAKEN WHEN ALMOST ONEHALF OF THE CONTEMPORARY ART FAILED TO SELL AND NO WORK CRACKED 1 MILLION THE NEXT WEEK ABOUT 36 OF SOTHEBY'S IMPRESSIONIST OFFERINGS DIDN'T SELL SOTHEBY'S TWO WEEKS OF SALES RAISED 1023 MILLION FROM SELLING 489 ARTWORKS CHRISTIE'S PRESALE PRICE ESTIMATES WERE IN GENERAL A LITTLE LESS AMBITIOUS IT SOLD TWOTHIRDS OF ITS OFFERINGS AT ITS MAJOR SALE OF CONTEMPORARY ART AND A ROBUST FOUR OUT OF FIVE OF THE IMPRESSIONIST AND MODERN WORKS IT PUT ON THE BLOCK AT ALL ITS SALES IT RAISED 753 MILLION WITH 611 WORKS SELLING WHILE CHRISTIE'S TOOK THE UNPRECEDENTED STEP OF TOURING THE HIGHLIGHTS OF ITS IMPRESSIONIST SALE TO MEXICO THERE WAS LITTLE LATIN AMERICAN BUYING FOR THE TOP PIECES ALTHOUGH THOSE BUYERS MAY BE HOARDING THEIR CASH WAITING FOR NEXT WEEK'S BIG SALES OF LATIN AMERICAN ART IN NEW YORK BOTH AUCTION HOUSES REMOVED THE MEXICAN PESO FEATURED LAST SEASON FROM THEIR CURRENCY CONVERSION BOARDS THAT HANG IN THE SALESROOM SIMILARLY PRICES FOR SURREALIST ART SOMETIMES COLLECTED BY ITALIANS WEAKENED IN LINE WITH THE DECLINE OF THE ITALIAN LIRA AS WELL AS A HEAVY SUPPLY OF WORKS FOR SALE FINALLY THE SALES OFFERED AMPLE PROOF THAT OVER TIME GOOD ART APPRECIATES IN VALUE AT SOTHEBY'S TUESDAY AN 1865 STILLLIFE OF WINE AND FRUIT BY FRENCH IMPRESSIONIST PAINTER HENRI FANTINLATOUR WENT ON THE BLOCK SKILLFUL AND VERY ATTRACTIVE BUT OTHERWISE UNREMARKABLE THE WORK HAD SOLD FOR 16320 IN 1971 AND FOR MORE THAN 10 TIMES THAT OR 165000 14 YEARS LATER IN MAY 1985 WHEN IT HIT THE AUCTION BLOCK AGAIN THIS WEEK THE PRICE HAD NEARLY TRIPLED IT BROUGHT 442500 9305140071 930514 TECHNOLOGY BRIEF DIGITAL EQUIPMENT CORP NEW SERIES OF DESKTOP PCS BOASTS FASTEST DATA TRANSFER DIGITAL EQUIPMENT CORP UNVEILED NEW MODELS OF ITS DESKTOP COMPUTER SERIES WHICH IT SAYS FEATURE THE FASTEST AVAILABLE BUSES OR DATA TRANSFER TECHNOLOGY ADVANCED VIDEO AND GRAPHICS CAPABILITIES AND UPGRADABLE POWER DIGITAL SAID THE TWO DECPC MTE MODELS ARE PRICED AT 2649 AND 3099 AND INCLUDE A LOWCOST PERIPHERAL CARD OPTION WHICH ENABLES USERS TO SHARE DATA BETWEEN PORTABLE COMPUTERS AND DESKTOP SYSTEMS DIGITAL SAID IT IS THE FIRST MAJOR US COMPUTER VENDOR TO OFFER THE OPTION THE MAYNARD MASS COMPUTER MAKER SAID THE MODELS CAN BE UPGRADED TO INTEL CORP'S NEXT GENERATION OF PENTIUM MICROCHIPS 9305140070 930514 INTERNATIONAL RATE LINK SPURS SPAIN PORTUGAL TO DEVALUATION PESETA FALLS 8 ESCUDO 65 MADRID ELECTION ECONOMY ARE FACTORS BY TERENCE ROTH AND CARLTA VITZTHUM STAFF REPORTERS OF THE WALL STREET JOURNAL EUROPE'S EXCHANGE RATE MECHANISM WHICH HOLDS MEMBERCOUNTRY CURRENCIES WITHIN A NARROW TRADING RANGE CLAIMED NEW VICTIMS AS SPAIN ASKED FOR A DEVALUATION OF ITS PESETA BOWING TO PRESSURE IT HAD VOWED TO RESIST PORTUGAL WAS FORCED TO ACCEPT A DEVALUATION AS WELL ACTING ON THE SPANISH GOVERNMENT'S REQUEST THE EUROPEAN COMMUNITY'S MONETARY COMMITTEE MARKED DOWN BY 8 THE CENTRAL RATE FOR THE PESETA PARITY AGAINST OTHER ERM CURRENCIES THE PORTUGUESE ESCUDO WHICH IS CLOSELY LINKED TO THE PESETA WAS DEVALUED BY 65 ECONOMY MINISTER CARLOS SOLCHAGA SAID THE REALIGNMENT WILL ENABLE THE BANK OF SPAIN TO CUT ITS KEY LENDING RATE TO COMMERCIAL BANKS BY 15 PERCENTAGE POINTS TO 115 TODAY IN THE HOPE OF PAVING THE WAY FOR AN ECONOMIC RECOVERY IN THE SECOND HALF THE FOCUS ON EUROPE KEPT THE DOLLAR OUT OF THE FOREIGNEXCHANGE MARKET SPOTLIGHT DURING THE DAY THE US CURRENCY ENDED MOSTLY FIRMER THE LATEST ERM REALIGNMENT WAS TRIGGERED BY GROWING SPECULATIVE PRESSURE ON THE PESETA AS THE SPANISH ECONOMY FALTERED AND THE OUTCOME OF SPAIN'S JUNE 6 GENERAL ELECTIONS LOOKED INCREASINGLY UNCERTAIN THERE ALSO WAS CONCERN THAT SPAIN WOULD BE ONE OF THE BIGGEST LOSERS IF DANISH VOTERS REJECT THE MAASTRICHT TREATY ON CLOSER ECONOMIC UNION AND A SINGLE CURRENCY IN A REFERENDUM NEXT TUESDAY OF THE 12 EC COUNTRIES THAT MUST RATIFY THE MAASTRICHT TREATY BEFORE MONETARY UNION CAN GO AHEAD ONLY DENMARK AND BRITAIN ARE UNDECIDED THOUGH POLLS INDICATE DANISH APPROVAL IS LIKELY A REJECTION WOULD ENDANGER THE EXCHANGE RATE MECHANISM ITSELF UNLEASHING NEW SPECULATIVE ATTACKS AGAINST ITS WEAKER CURRENCIES BEGINNING WITH THE SPANISH PESETA NOW SOME ANALYSTS ARE WORRIED THAT THE SPANISH RETREAT COULD MOVE MORE DANES TO VOTE AGAINST EUROPEAN MONETARY UNION BY DEVALUING NOW SPAIN OPTED FOR DAMAGE CONTAINMENT BUT IT ALSO HAD TO CONSIDER THE HUGE COST OF DEFENDING ITS OLD PARITY AGAINST STRONGER ERM CURRENCIES SUCH AS THE GERMAN MARK THE PESETA WAS SUBJECT TO GREAT TURMOIL AS A RESULT OF THE POLITICAL UNCERTAINTY ECONOMY MINISTER SOLCHAGA SAID WHEN EXPLAINING SPAIN'S REALIGNMENT REQUEST THE GOVERNMENT DID EVERYTHING POSSIBLE TO CALM THE TENSIONS BUT IT HAD LITTLE EFFECT ON THE MARKET THAT IS LESS INFLUENCED BY REASON THAN BY POLITICAL UNCERTAINTY TO BOLSTER THE PESETA THE BANK OF SPAIN WOULD HAVE HAD TO RAISE INTEREST RATES UNTIL A NEW GOVERNMENT COULD BE FORMED THEREBY DEPRESSING THE ECONOMY EVEN FURTHER MR SOLCHAGA SAID DEFENDING THE PESETA ALSO WOULD HAVE BEEN COSTLY IN TERMS OF RESERVES ONE LONDON CURRENCYMARKET ANALYST ESTIMATED THAT THE BANK OF SPAIN SOLD FIVE BILLION MARKS 31 BILLION FOR PESETAS ALONE ON WEDNESDAY TO DEFEND ITS CURRENCY PARITY THOUGH HE DECLINED TO COMMENT ON THE LEVEL OF SPANISH RESERVES MR SOLCHAGA SAID THEY ARE STILL AT AN IMPORTANT LEVEL EVEN THOUGH ITS BEEN A COSTLY EFFORT TO SUPPORT THE PESETA THE REST OF THE ERM WAS UNRUFFLED BY THE REALIGNMENT OF THE IBERIAN CURRENCIES A DEVALUATION OF THE PESETA IN SEPTEMBER TRIGGERED WAVES OF SPECULATIVE ATTACKS ON WEAKER ERM CURRENCIES BRITISH STERLING AND THE ALIAN LIRA WERE BEATEN DOWN SO HEAVILY BY CURRENCY SPECULATORS THAT THEY WERE WITHDRAWN FROM THE SYSTEM THIS TIME CURRENCY MARKETS WERE CALM BY COMPARISON THE SITUATION HAS CHANGED FROM LAST AUTUMN SAID WERNER GERBIG CHIEF CURRENCY TRADER FOR COMMERZBANK AG IN FRANKFURT THE GERMAN MARK IS WEAKENED BY ITS ECONOMY AND GERMAN INTEREST RATES ARE NO LONGER AS HIGH AS THEY WERE LOOKING AT WHERE CURRENCIES ARE IN THEIR PARITIES THE STRONGEST ERM CURRENCIES RIGHT NOW ARE THE IRISH PUNT AND THE DUTCH GUILDER THE REPERCUSSIONS FOR THE ERM AND THE MAASTRICHT TREATY WOULD HAVE BEEN GRAVER IF THE PESETA OR ESCUDO WOULD HAVE BECOME THE LATEST CURRENCIES TO FLOAT FREE AND EXIT THE ERM GRID ALTOGETHER ECONOMISTS SAID YANKING THE PESETA FROM THE ERM WOULD HAVE GIVEN THE SPANISH CENTRAL BANK EVEN MORE LEEWAY TO SINK SPANISH INTEREST RATES TO REVIVE A SLOWING ECONOMY AND BRING DOWN THE 20 UNEMPLOYMENT RATE A SUSPENSION FROM THE ERM WOULD HAVE BEEN THE QUICK CURE SAID MR DAVIDSON THE SPANISH ECONOMY IS IN NO STATE TO HAVE DOUBLEDIGIT INTEREST RATES BUT A SUSPENSION WOULD HAVE RAISED BIGGER QUESTION MARKS FOR EUROPE BUT SPAIN'S MR SOLCHAGA REAFFIRMED HIS GOVERNMENT'S COMMITMENT TO THE ERM WE HAVE NEVER CONSIDERED WITHDRAWING FROM THE SYSTEM HE SAID NOR HAVE ANY OF OUR COLLEAGUES SUGGESTED IT EUROPEAN CENTRAL BANKERS HAVE URGED TIMELY REALIGNMENTS OF THE ERM IF CURRENCIES COME UNDER PROLONGED PRESSURE BUT CURRENCY ANALYSTS ARGUE THAT EACH REALIGNMENT JARS THE CREDIBILITY OF THE ERM AS A PROVING GROUND FOR A SINGLE EUROPEAN CURRENCY BY 1999 CURRENCY STABILITY BASED ON THE CONVERGENCE OF ECONOMIC CONDITIONS IN THE EC COUNTRIES IS A PREREQUISITE FOR FULFILLING THE MAASTRICHT TREATY IN LISBON BANK OF PORTUGAL GOVERNOR MIGUEL BELEZA SAID THE ESCUDO'S REALIGNMENT WASN'T A DEVALUATION THAT WAS EITHER DESIRABLE OR NECESSARY BUT IN THE FACE OF SPAIN'S UNILATERAL DECISION TO REQUEST A DEVALUATION OF THE PESETA IT WAS INDISPENSABLE IN ORDER TO AVOID A COMPETITIVE LOSS OF THE ESCUDO THAT WOULD HAVE CAUSED EXCESSIVE DIFFICULTIES FOR THE PORTUGUESE ECONOMY 9305140069 930514 BUSINESS BRIEF FEDERAL EXPRESS CORP VOLUME OF EXPRESS DELIVERIES ROSE 11 IN APRIL FROM 1992 FEDERAL EXPRESS CORP SAID AVERAGE DAILY VOLUME OF EXPRESS PACKAGES AND DOCUMENTS FOR APRIL ROSE 11 FROM A YEAR EARLIER THE MEMPHIS TENN EXPRESSPACKAGE CONCERN SAID TOTAL AVERAGE DAILY PACKAGE VOLUME FOR APRIL ROSE TO 1751636 FROM 1580818 LAST APRIL TOTAL VOLUME FOR APRIL WAS 38536000 COMPARED WITH 34778000 A YEAR EARLIER FEDERAL EXPRESS SAID PRIORITY OVERNIGHT VOLUME ROSE TO 819773 FROM 779500 STANDARD OVERNIGHT VOLUME INCREASED TO 410500 FROM 365364 AND ECONOMY TWODAY VOLUME ROSE TO 403000 FROM 326000 IT SAID INTERNATIONAL PRIORITY VOLUME IN APRIL ROSE TO 118363 FROM 109954 A YEAR EARLIER THE COMPANY ALSO SAID AIRFREIGHT OR CARGO VOLUME FOR APRIL FELL 149 TO 445 MILLION POUNDS FROM 523 MILLION A YEAR EARLIER INTERNATIONAL AIRFREIGHT VOLUME WAS 363 MILLION POUNDS COMPARED WITH 436 MILLION LAST YEAR DOMESTIC AIRFREIGHT VOLUME WAS 82 MILLION POUNDS COMPARED WITH 87 MILLION A YEAR EARLIER 9305140068 930514 BUSINESS BRIEF ROBERTS PHARMACEUTICAL CORP INTERNATIONAL DRUG CONCERN POSTS PROFIT AS PUBLIC FIRM ROBERTS PHARMACEUTICAL CORP REPORTED ITS FIRST PROFIT SINCE THE INTERNATIONAL DRUG REMARKETER BECAME PUBLIC BUOYING THE COMPANY'S STOCK ROBERTS SAID FIRSTQUARTER NET INCOME WAS 721000 OR FIVE CENTS A SHARE COMPARED WITH A LOSS OF 11 MILLION OR 10 CENTS A SHARE A YEAR EARLIER THE FIRM'S STOCK MOVED UP ON THE NEWS CLOSING AT 2150 UP 150 IN NATIONAL OVERTHECOUNTER TRADING REVENUE ROSE TO 169 MILLION FROM 49 MILLION BUT OPERATING EXPENSES ALSO SOARED TO 156 MILLION FROM 44 MILLION ROBERTS SAID THE RISE IS THE RESULT OF INCREASED INVESTMENT TO SUPPORT PRODUCT DEVELOPMENT AND SALES THE EATONTOWN NJ FIRM ACQUIRES DEVELOPS AND MARKETS LATEDEVELOPMENT PHARMACEUTICALS WE ARE VERY PLEASED WITH THE CONTINUING PROGRESS AND IMPROVEMENT IN ROBERTS'S OVERALL PERFORMANCE SAID DR ROBERT A VUKOVICH CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE CALLED THE QUARTER A MILESTONE FOR THE COMPANY 9305140067 930514 HEARD ON THE STREET PENSION FUND TAKING SHAREHOLDER ACTIVISM ACROSS BORDER OPPOSES MEXICAN FIRM'S PLAN BY SUSAN PULLIAM AND CRAIG TORRES STAFF REPORTERS OF THE WALL STREET JOURNAL TUBOS DE ACERO DE MEXICO A STEEL PIPE MANUFACTURER COMMONLY KNOWN AS TAMSA IS GETTING A FIRSTHAND VIEW OF SHAREHOLDER ACTIVISM US STYLE THE STATE OF WISCONSIN INVESTMENT BOARD WISCONSIN'S PENSION FUND SAID IT PLANS TO OPPOSE TAMSA'S 75 MILLION RIGHTS OFFERING TODAY WHEN SHAREHOLDERS ARE SCHEDULED TO VOTE ON THE PROPOSAL WISCONSIN SAYS THE OFFERING IS UNFAIR BECAUSE IT GIVES A LARGE SHAREHOLDER ARGENTINIAN STEEL COMPANY SIDERCA PREFERENTIAL TREATMENT YOU'LL PROBABLY SEE MORE AND MORE OF THIS AS INVESTORS INVEST OVERSEAS SAID A WISCONSIN PENSION FUND REPRESENTATIVE BY EXPORTING SHAREHOLDER ACTIVISM BIG US INVESTORS HOPE TO BOOST SHARE PRICES ABROAD AS THEY HAVE TRIED TO DO AT HOME WHEN ASKED ABOUT THE FAIRNESS OF THE OFFERING TAMSA'S CORPORATE COUNSEL ALFREDO FREYSSINIER SAID OH MY GOD THAT'S A VERY TOUCHY QUESTION HE DECLINED TO COMMENT FURTHER IN THE SHORT RUN THE BATTLE BETWEEN TAMSA AND THE WISCONSIN PENSION FUND PROBABLY WON'T DO MUCH TO BUOY TAMSA'S SHARES WHICH CLOSED YESTERDAY AT 5375 ON THE AMERICAN STOCK EXCHANGE WHERE THEY TRADE AS AMERICAN DEPOSITARY RECEIPTS IN FACT TAMSA HAS MORE TO CONTEND WITH THAN UNHAPPY US SHAREHOLDERS WITH THE MARKET FOR STEEL PIPES IN THE DOLDRUMS AND COMPETITION HEATING UP FOR SHRINKING BUSINESS TAMSA IS STRUGGLING OTHER BIG US INVESTORS ARE ALSO TAKING AIM AT FOREIGN COMPANIES YESTERDAY IN TOKYO WILLIAM CRIST PRESIDENT OF THE BOARD OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM SPOKE AT A MEETING OF US AND JAPANESE BUSINESS EXECUTIVES WE'RE FOCUSING ON THE IMPORTANCE OF THE INDEPENDENCE OF OUTSIDE DIRECTORS SAID RICHARD KOPPES GENERAL COUNSEL OF CALPERS THAT'S A NOVEL CONCEPT IN JAPAN OVERALL PENSION FUNDS IN THE US HAD INVESTED 157 BILLION IN INTERNATIONAL STOCK AND BOND MARKETS AS THE YEAR BEGAN BY 1995 THEY PLAN TO INCREASE THOSE HOLDINGS TO 283 BILLION ACCORDING TO A SURVEY OF PENSION FUNDS BY GREENWICH ASSOCIATES A CONSULTING FIRM IN GREENWICH CONN WITH THAT AMOUNT OF MONEY FLOODING INTO THE MARKETS ABROAD INVESTORS ARE GOING TO NEED PLENTY OF PROTECTION ONE OF THE PRIMARY RISKS OF INVESTING ABROAD IS THAT SHAREHOLDERS DON'T HAVE THE SAME PROTECTION UNDER SECURITIES RULES AS THEY DO IN THE US THE WISCONSINTAMSA CONFLICT IS AN INTERESTING EXPERIMENT IN PUSHING SHAREHOLDER RIGHTS OUTSIDE THE US IT'S UNCLEAR IF WISCONSIN WITH A 9 TAMSA STAKE WILL SUCCEED IN STOPPING THE RIGHTS OFFERING TERMS WOULD LET SHAREHOLDERS BUY NEW SHARES AT 565 A 51 PREMIUM ABOVE YESTERDAY'S US CLOSE TAMSA HAS A TOTAL OF 55 MILLION SHARES OUTSTANDING THE OFFERING WOULD BOOST THAT BY 24 THE OFFERING TERMS WOULD ALLOW TAMSA'S ALLY AND 7 SHAREHOLDER SIDERCA TO BUY AT 565 ANY SHARES NOT SNAPPED UP BY OTHER HOLDERS SINCE THE RIGHTS ARE PRICED ABOVE MARKET A HEAP OF STOCK COULD BE PITCHED TO SIDERCA BOOSTING ITS STAKE AS HIGH AS 25 SIDERCA IS SEEKING CONTROL WITHOUT HAVING TO PAY A SIGNIFICANT PREMIUM TO THE MARKET SAID NEIL PERRY ANALYST WITH BARING SECURITIES IN MEXICO CITY THAT PROSPECT IRKS WISCONSIN'S PENSION FUND WITH THE OILSERVICE INDUSTRY IN THE DOLDRUMS THIS IS NO TIME TO BE SELLING A STAKE IN THE COMPANY ON THE CHEAP SAID JOHN NELSON INVESTMENT DIRECTOR WISCONSIN IS NOT ONLY TRYING TO CONVINCE SHAREHOLDERS TO VOTE AGAINST THE RIGHTS OFFERING IT IS ALSO URGING THEM TO EXERCISE THEIR RIGHTS IF THE OFFERING GOES AHEAD ONE LARGE HOLDER CAPITAL GROUP'S CAPITAL INTERNATIONAL WITH 10 IS LIKELY TO EXERCISE ITS RIGHTS PEOPLE CLOSE TO THE SITUATION SAY CAPITAL GROUP WON'T COMMENT THE OFFERING WOULD BRING TAMSA 75 MILLION IN MUCHNEEDED CAPITAL MONEY MANAGERS VIEW THE TAMSASIDERCA ALLIANCE AS A GASP FOR SURVIVAL FOR BOTH COMPANIES FOR YEARS TAMSA HAS DEPENDED ON ORDERS FROM PETROLEOS MEXICANOS MEXICO'S STATEOWNED OIL COMPANY AND SIDERCA THEY SAY HAS HAD A COZY RELATIONSHIP WITH ARGENTINA'S STATEOWNED YACIMIENTOS PETROLIFEROS FISCALES LAST YEAR PEMEX ORDERED 83000 TONS OF STEEL PIPE FROM TAMSA BUT FOR THE 1993 FIRST QUARTER IT ORDERED ONLY 4000 TONS ANALYSTS ARE BEARISH ON TAMSA MR PERRY RECENTLY SLASHED HIS 1993 ESTIMATE TO 091 NEW PESOS OR ABOUT 29 CENTS A SHARE HE FIGURES TAMSA HAD A 1992 LOSS OF ABOUT 010 NEW PESOS OR THREE CENTS A SHARE EXCLUDING ONETIME CHARGES THE NORTH AMERICAN FREE TRADE AGREEMENT WILL FUEL COMPETITION SAYS SERGIO SANCHEZ GARCIA HEAD OF RESEARCH AT GRUPO SANTANDER MEXICO ALREADY PEMEX HAGGLES ON PRICES WITH SUPPLIERS AND HE SAYS TAMSA IS GOING TO HAVE TO BECOME VERY COMPETITIVE DEMAND FOR STEEL PIPE COULD BE HUGE IN MEXICO PEMEX'S BIG CAPITAL PLANS WILL USE MILES OF STEEL PIPE SIDERCA IS BEING VERY AGGRESSIVE TRYING TO PENETRATE THE MEXICAN MARKET THROUGH TAMSA SAYS MR SANCHEZ GARCIA STILL IT IS NOT CLEAR THAT SIDERCA IS A WORLDCLASS COMPETITOR THAT WILL BENEFIT TAMSA HIS VIEW AVOID TAMSA'S STOCK YEAR ENDED DEC 31 1992 FIRST QUARTER MARCH 31 1993 9305140066 930514 ANTITRUST LAWS ROIL WORLD OF HEALING LAW LEGAL BEAT NEW RULES LET HOSPITALS START JOINT VENTURES BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL HOSPITAL EXECUTIVES IN FIVE STATES ARE DOING SOMETHING THAT ONLY A FEW YEARS AGO WOULD HAVE BEEN UNTHINKABLE AND POSSIBLY ILLEGAL THEY'RE TALKING TO ONE ANOTHER DESPITE CONCERNS ABOUT INHIBITING COMPETITION MORE STATES ARE ALLOWING HOSPITALS TO NEGOTIATE JOINT VENTURES THAT COULD HELP REDUCE EMPTY BEDS AND UNDERUSED SERVICES JUST TALKING ABOUT SUCH VENTURES MIGHT ONCE HAVE VIOLATED ANTITRUST LAWS WHICH ARE DESIGNED TO PROMOTE COMPETITION BY PREVENTING COLLUSION AND PRICE FIXING BUT UNDER NEWLY ENACTED LEGISLATION IN MAINE MINNESOTA OHIO WISCONSIN AND WASHINGTON HOSPITALS PURSUING MANY KINDS OF COOPERATIVE PROJECTS CAN GET PROTECTION FROM ANTITRUST ENFORCEMENT SIMILAR LAWS ARE PENDING IN SIX OTHER STATES AND IN CONGRESS BEFORE THIS LAW WAS PASSED IF YOU GOT TWO HOSPITALS TOGETHER SOMEBODY IN THE ROOM WAS GOING TO SAY WAIT A MINUTE ANTITRUST EVERYBODY CLAM UP' SAYS DONALD MCDOWELL PRESIDENT OF MAINE MEDICAL CENTER IN PORTLAND THE STATE'S LARGEST HOSPITAL COURTS WILL ALLOW A STATE TO GRANT EXEMPTIONS FROM FEDERAL ANTITRUST SCRUTINY AS LONG AS THE STATE ACTIVELY SUPERVISES ANY ANTICOMPETITIVE VENTURES WISCONSIN'S REFORM FOR INSTANCE SETS UP A SCREENING PROCESS THROUGH WHICH HOSPITALS AND OTHER HEALTHCARE FACILITIES CAN PETITION STATE OFFICIALS FOR AUTHORIZATION TO SHARE PERSONNEL PATIENTS OR SERVICES THE OFFICIALS ARE TO ISSUE THEIR APPROVAL IF THEY DECIDE THE BENEFITS OF A PROPOSED VENTURE SUBSTANTIALLY OUTWEIGH THE DISADVANTAGES OF ANY REDUCTION IN COMPETITION AUTHORIZATION CAN BE REVOKED LATER IF THE OFFICIALS MONITORING THE VENTURE CHANGE THEIR MINDS THE FIRST STATE TO CHANGE THE RULES ON HOSPITAL COOPERATION WAS MAINE WHICH ENACTED ITS LAW LAST YEAR ALMOST IMMEDIATELY HOSPITALS ALL OVER THE STATE LEAPT INTO NEGOTIATIONS IN SEPTEMBER NORTHERN CUMBERLAND MEMORIAL HOSPITAL A 40BED HOSPITAL IN BRIDGTON THAT HADN'T BEEN ABLE TO RECRUIT A PEDIATRICIAN FORMED A JOINT VENTURE WITH A 50BED HOSPITAL 20 MILES AWAY THE VENTURE ESTABLISHED A PEDIATRIC PRACTICE TO SERVE ALL OF WESTERN MAINE MEANWHILE 10 MAINE HOSPITALS ARE CONSIDERING COLLECTIVELY EXPANDING THEIR MENTALHEALTH SERVICES AND THREE PORTLAND FACILITIES HAVE DISCUSSED CREATING A JOINT LABORATORY BY RELAXING ANTITRUST SCRUTINY AND PROMOTING COOPERATION THE FIVE STATES HAVE CHALLENGED A TENET OF FAITH IN CURRENT EFFORTS TO CONTROL HEALTH COSTS THE IDEA THAT MOREINTENSE COMPETITION WILL REDUCE PRICES THE STATES' ACTIONS ALSO COULD COLLIDE WITH PROPOSALS BY PRESIDENT CLINTON'S HEALTHCARE TASK FORCE WHICH IS EXPECTED TO RECOMMEND INTRODUCING NEW COMPETITION TO THE MEDICAL MARKET BUT MANY SUPPORTERS OF THE ANTITRUST REFORMS CONTEND THAT COMPETITION IS PART OF THE PROBLEM AND NOT THE SOLUTION COMPETITION THEY ARGUE HAS LED TO A KIND OF MEDICAL ARMS RACE IN WHICH EVEN SMALL HOSPITALS TRY TO OFFER PATIENTS ALL THE LATEST TECHNOLOGY THE HOSPITALS THEN HAVE TO RAISE PRICES TO COVER THE HIGH COSTS OF THE TECHNOLOGY COMPETITION HAS HAD A LONG TIME TO WORK SAYS MR MCDOWELL THE MORE WE'VE COMPETED THE MORE WE'VE DRIVEN UP THE COSTS EVEN IF MORE STATES PASS ANTITRUST EXEMPTIONS HOSPITALS IN MANY AREAS MAY CHOOSE NOT TO COOPERATE WITH ONE ANOTHER MOST OF THE STATES THAT ALREADY HAVE PASSED REFORMS HAVE AN ABUNDANCE OF SMALL RURAL HOSPITALS STRUGGLING TO STAY AFLOAT IN BIG CITIES TEEMING WITH PROSPECTIVE PATIENTS LARGE HOSPITALS COULD FIND THE NEED FOR COLLABORATION LESS URGENT BIGCITY HOSPITALS OFTEN ARE COMMITTED TO A KAMIKAZE SURVIVAL INSTINCT SAYS MR MCDOWELL IF I HAVE A LONGRANGE STRATEGIC PLAN THAT SAYS I'M GOING TO STEAL YOUR MARKET SHARE IT'S VERY HARD FOR ME TO SIT DOWN AND TALK WITH YOU ABOUT COOPERATION SOME SUPPORTERS OF HOSPITAL ANTITRUST EXEMPTIONS BELIEVE THAT ENCOURAGING MORE COOPERATION IN HEALTH CARE ACTUALLY WILL PROMOTE COMPETITION IN THE LONG RUN IT ISN'T A QUESTION OF COMPETITION NOT WORKING SAYS THOMAS CAMPBELL AN ANTITRUST SPECIALIST AT LAW FIRM GARDNER CARTON & DOUGLAS IN CHICAGO IT'S A QUESTION OF WHOSE BRAND OF COMPETITION WE'RE TALKING ABOUT MR CAMPBELL CONTENDS THAT JOINT VENTURES AND MERGERS MAKE HOSPITALS MORE EFFICIENT AND THEREFORE BETTER ABLE TO COMPETE FOR PATIENTS BY OFFERING CHEAPER CARE FEDERAL OFFICIALS RESPONSIBLE FOR ANTITRUST ENFORCEMENT REMAIN WARY OF HOSPITALS' INTENTIONS AND WARN THAT SOME FACILITIES IF UNWATCHED MAY COLLABORATE IN WAYS THAT HARM CONSUMERS THEY ALSO INSIST THAT BROAD ANTITRUST EXEMPTIONS AREN'T NECESSARY BECAUSE THE GOVERNMENT HAS CHALLENGED ONLY FIVE OF THE MORE THAN 200 HOSPITAL MERGERS THAT TOOK PLACE BETWEEN 1987 AND 1991 GOVERNMENT ACTION HAS BEEN VERY PRECISE SAYS MARY LOU STEPTOE ACTING DIRECTOR OF THE FEDERAL TRADE COMMISSION'S BUREAU OF COMPETITION IT'S BEEN A SCALPEL AND NOT A BLUDGEON AND YET THE TALK OUT THERE IS AS IF WE ARE RUNNING OUT THERE WITH A BLUDGEON AND STOPPING EVERY HOSPITAL MERGER BUT ANTITRUST LAWYERS AND HOSPITAL EXECUTIVES SAY THE GOVERNMENT'S FIVE PROSECUTIONS HAVE BEEN VIGOROUS ENOUGH TO FRIGHTEN MANY HOSPITALS FROM TALKING ABOUT COOPERATIVE VENTURES IT'S A LITTLE DISINGENUOUS TO SAY WE'VE ONLY GOTTEN AWAY WITH ROBBING FIVE BANKS SAYS MR CAMPBELL ONCE WORD GETS OUT HE SAYS EVERYONE LOCKS THEIR WINDOWS KEENE CORP ASKED A FEDERAL JUDGE TO ALLOW IT TO SETTLE ALL CURRENT AND FUTURE ASBESTOS CLAIMS AGAINST THE COMPANY THROUGH AN UNUSUAL CLASSACTION MEASURE THE FORMER ASBESTOS MAKER ASKED THE COURT TO DECLARE THAT THE COMPANY HAS LIMITED FUNDS TO PAY DAMAGES TO THE 90000 PLAINTIFFS CURRENTLY SUING IT AS WELL AS ASBESTOS CLAIMANTS WHO MIGHT SUE IN THE FUTURE THE NEW YORKBASED COMPANY FILED ITS REQUEST WITH JUDGE JACK B WEINSTEIN IN FEDERAL COURT IN BROOKLYN KEENE'S PROPOSAL IS THE LATEST ATTEMPT BY A FORMER ASBESTOS MAKER TO END LITIGATION OVER THE ONCE WIDELY USED FIREPROOFING AND INSULATING PRODUCT THE MATERIAL CAN CAUSE CANCER AND OTHER AILMENTS YEARS AFTER EXPOSURE KEENE IS SEEKING TO USE A LITTLETESTED PROVISION OF CLASSACTION LAW TO FORCE ALL ASBESTOS PLAINTIFFS TO SETTLE AS A GROUP RATHER THAN PURSUE INDIVIDUAL CASES KEENE'S ARGUMENT IS THAT IT ONLY HAS A LIMITED AMOUNT OF MONEY ABOUT 100 MILLION IF A DEAL ISN'T REACHED FOR ALL PLAINTIFFS THE COMPANY ARGUES SOME CLAIMANTS WILL END UP GETTING MORE THAN OTHERS IF KEENE SUCCEEDS IT WOULD BECOME THE FIRST FORMER ASBESTOS MANUFACTURER TO LIMIT ALL ITS LIABILITY WITHOUT FILING FOR BANKRUPTCYCOURT PROTECTION THE UNUSUAL CLASSACTION PROPOSAL WAS USED BY EAGLEPICHER INDUSTRIES INC BUT THAT COMPANY FILED FOR BANKRUPTCYCOURT PROTECTION BEFORE THE PROPOSAL COULD BE TESTED IN THE COURTS MANVILLE CORP ALSO RELIED ON THIS TYPE OF CLASS ACTION TO RESOLVE ITS ASBESTOS LIABILITY BUT IT HAD ALREADY FILED FOR BANKRUPTCYCOURT PROTECTION FRED BARON A PARTNER AT DALLAS LAW FIRM BARON & BUDD WHICH REPRESENTS MANY ASBESTOS PLAINTIFFS CALLED KEENE'S PROPOSAL AN ATTEMPT TO AVOID LIABILITY AND KEEP MONEY FROM PLAINTIFFS THEY SHOULD GO INTO BANKRUPTCY IF THEY DON'T HAVE ENOUGH MONEY TO PAY VICTIMS MR BARON SAID WHO'S NEWS KENNETH I JUSTER FORMERLY ACTING COUNSELOR AT THE STATE DEPARTMENT RETURNED TO WASHINGTON LAW FIRM ARNOLD & PORTER AS A PARTNER MR JUSTER WILL FOCUS ON INTERNATIONAL TRADE AND INTERNATIONAL TRANSACTIONS WINSTON & STRAWN SAID FOUR ATTORNEYS JOINED THE CHICAGO LAW FIRM'S FINANCIALINSTITUTIONS PRACTICE THE NEW LAWYERS INCLUDE PARTNER STEVEN M LUCAS FROM WASHINGTON LAW FIRM WILEY REIN & FIELDING AND PARTNER DAVID W RODERER FROM CHICAGO LAW FIRM JONES DAY REAVIS & POGUE ALONG WITH MR LUCAS TWO OTHER INTERNATIONALBANKING LAWYERS FROM WILEY REIN JOINED IN NONPARTNER POSITIONS ALL FOUR WILL PRACTICE MAINLY IN NEW YORK AND WASHINGTON LETTING UP ON LEONA LEONA HELMSLEY WILL GET OUT OF PRISON BEFORE THE DECEMBER HOLIDAYS IF PAROLE OFFICIALS FOLLOW A JUDGE'S RECOMMENDATION US JUDGE THOMAS GRIESA IN NEW YORK SAID MRS HELMSLEY CONVICTED IN 1989 OF TAX EVASION SHOULD BE RELEASED AFTER SERVING 20 MONTHS OF HER FOURYEAR SENTENCE THE JUDGE CITED THE 73YEAROLD HOTEL EXECUTIVE'S AGE AND THE POOR HEALTH OF HER HUSBAND PROSECUTORS SAID THEY OPPOSED THE EARLY RELEASE JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE SEE RELATED ARTICLE MEDICINE REGULATORS AIM AT FEES DOCTORS CHARGE HMOS WSJ MAY 14 1993 CORRECTIONS & AMPLIFICATIONS UTICA MUTUAL INSURANCE CO WON'T HAVE TO REIMBURSE BAUSCH & LOMB INC FOR CLEANING UP A POLLUTED SITE IN MARYLAND AN ITEM IN FRIDAY'S LEGAL BEAT COLUMN REPORTED THAT MARYLAND'S HIGHEST COURT HAD DECIDED IN THE CASE THAT ENVIRONMENTAL DAMAGES CAN BE COVERED UNDER COMPREHENSIVE GENERAL LIABILITY POLICIES BUT ONLY WHEN THE PROPERTY AFFECTED IS OWNED BY A THIRD PARTY THE ARTICLE FAILED TO NOTE THAT CONDITION IN THE COURT'S RULING WSJ MAY 19 1993 9305140065 930514 ECONOMY CONSUMER PRICES JUMPED 04 DURING APRIL UPTICK CONTRADICTS PACE OF RECOVERY POSSIBLY POSING PROBLEM FOR FED BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER PRICES ROSE UNCOMFORTABLY FAST IN APRIL A SIGN THAT PRICE INCREASES ARE PICKING UP STEAM EVEN BEFORE THE ECONOMY DOES THE LABOR DEPARTMENT SAID ITS CONSUMER PRICE INDEX ROSE 04 LAST MONTH AFTER A TINY 01 INCREASE IN MARCH FOR THE 12 MONTHS ENDED IN APRIL CONSUMER PRICES WERE UP 32 MORE TROUBLING IS THAT EXCLUDING THE VOLATILE FOOD AND ENERGY PRICES CONSUMER PRICES WERE STILL UP 04 LAST MONTH AND 35 FOR THE YEAR ENDED IN APRIL THE REPORT SENT STOCK AND BOND PRICES TUMBLING WHILE THE DOLLAR ROSE SEE ARTICLE ON PAGE C1 CONSUMER PRICES HAVE BEEN TRENDING UPWARD SINCE THE START OF THE YEAR EARLIER THIS WEEK THE DEPARTMENT SAID PRICES AT THE WHOLESALE LEVEL DURING APRIL MADE THEIR BIGGEST CLIMB IN MORE THAN TWO YEARS THIS IS A VERY DISAPPOINTING TREND GIVEN THE FOUR YEARS OF ECONOMIC HARDSHIP WE'VE PUT UP WITH TO GET INFLATION DOWN SAID MICKEY LEVY CHIEF ECONOMIST OF CRT GOVERNMENT SECURITIES AT THE SAME TIME THE COMMERCE DEPARTMENT SAID RETAIL SALES BOUNCED UP 12 LAST MONTH TO 16961 BILLION AFTER A 08 DECLINE IN MARCH BUT ANALYSTS SAID THE STRONG RETAIL SALES FIGURES DON'T NECESSARILY SIGNAL THAT CONSUMERS ARE HEADED FOR ANOTHER SPENDING BINGE INSTEAD ANALYSTS SAID IT IS MORE A REFLECTION OF HORRIBLE WEATHER IN MARCH THAT KEPT A LOT OF SHOPPERS OUT OF STORES JOB AND INCOME GROWTH IS STILL TOO WEAK TO SUPPORT REPEATEDLY STRONG GAINS IN RETAIL SALES SAID SANDRA SHABER RETAIL ANALYST FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA THE LABOR DEPARTMENT ALSO SAID AVERAGE WEEKLY EARNINGS FELL 01 IN APRIL THE THIRD MONTHLY DROP IN A ROW THE FACT THAT RECOVERY STILL SEEMS TO BE MOVING ALONG AT A FAIRLY SLOW PACE MAKES THE RECENT UPTICK IN PRICES DIFFICULT TO UNDERSTAND LABOR COSTS WHICH REPRESENT A BIG PORTION OF WHAT CONSUMERS PAY FOR GOODS AND SERVICES ARE RISING SLOWLY AND THERE IS STILL PLENTY OF EXCESS CAPACITY IN THE NATION'S MINES FACTORIES AND UTILITIES THE UNDERLYING FUNDAMENTALS DON'T SUGGEST INFLATION SAID LAURA TYSON CHAIRWOMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS THE LATEST FIGURES ARE CERTAIN TO ADD TO INFLATION FEARS AT THE FEDERAL RESERVE WHERE OFFICIALS ARE TO MEET TUESDAY TO SET INTERESTRATE POLICY FOR THE NEXT SEVERAL WEEKS FOR THE PAST EIGHT MONTHS THE FED HAS HELD THE KEY FEDERAL FUNDS RATE AT 3 ABOUT WHAT IT BELIEVED TO BE THE UNDERLYING RATE OF INFLATION THE FED'S LATEST ECONOMIC PROJECTIONS ISSUED IN FEBRUARY HAD CONSUMER PRICES INCREASING BY 2 1/2 TO 3 THIS YEAR BUT IF FED OFFICIALS BECOME CONVINCED THAT DESPITE THEIR EFFORTS THE CORE RATE OF INFLATION IS RUNNING CLOSER TO 4 THEY MAY FEEL COMPELLED TO PUSH RATES UP EVEN AMID THE PERSISTENT WEAKNESS OF THE ECONOMIC RECOVERY ANALYSTS SAID THE SCENARIO PUTS THE FED IN A VERY AWKWARD POSITION INFLATION RATES ARE TOO STRONG FOR THE FED TO EASE AND THE ECONOMY IS TOO WEAK FOR THE FED TO TIGHTEN SAID DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY CONSUMER PRICES CREPT UP ACROSS THE BOARD LAST MONTH MEDICALCARE COSTS JUMPED THE MOST RISING 06 AFTER A 03 INCREASE IN MARCH FOOD HOUSING TRANSPORTATION AND ENTERTAINMENT COSTS ALSO ALL ROSE AT A FASTER CLIP THAN THEY DID IN MARCH THE INCREASE IN RETAIL SALES WAS DRIVEN MAINLY BY A 31 JUMP IN CAR SALES APPAREL SALES ALSO MADE A STRONG GAIN AS DID SALES AT DEPARTMENT STORES THE ONLY AREAS WHERE SALES DROPPED IN APRIL WERE AT FURNITURE AND DRUG STORES SEPARATELY THE LABOR DEPARTMENT SAID NEW CLAIMS FOR INITIAL UNEMPLOYMENT BENEFITS FELL 3000 IN THE WEEK ENDED MAY 8 TO 339000 THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS A BETTER INDICATOR OF LABOR MARKET CONDITIONS ROSE TO 345750 FROM 344000 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS DAVID WESSEL CONTRIBUTED TO THIS ARTICLE HERE ARE THE SEASONALLY ADJUSTED CHANGES IN THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR APRIL APRIL CONSUMER PRICE INDEXES 19821984 EQUALS 100 UNADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM APRIL 1992 WERE 9305140064 930514 CORRECTIONS & AMPLIFICATIONS NESTLE SA'S 1992 SALES TOTALED 545 BILLION SWISS FRANCS OR 374 BILLION IN AN ARTICLE YESTERDAY THE FIGURE WAS INCORRECTLY CONVERTED AS 374 MILLION CONVERSE INC SAYS THAT IT HASN'T DISCLOSED THE AMOUNT OF THE CONTRACT IT HOLDS WITH BASKETBALL STAR EARVIN MAGIC JOHNSON TO ENDORSE ITS ALL STAR ATHLETIC SHOES BUT THAT THE 1 MILLION ANNUALLY MENTIONED IN AN ADVERTISING COLUMN MAY 6 IS INCORRECT ALSO THE CONTRACT EXPIRES IN AUGUST 1995 NOT AUGUST 1994 A HEARING IN NEW YORK SURROGATE'S COURT TO RESOLVE THE OWNERSHIP OF A 1948 PAINTING BY JACKSON POLLOCK IS SCHEDULED FOR JUNE 24 AN ARTICLE YESTERDAY INCORRECTLY GAVE THE DATE AS MAY 24 9305140063 930514 BUSINESS BRIEF COCACOLA ENTERPRISES INC STOCK REPURCHASE IS PLANNED FOR ABOUT 11 MILLION SHARES COCACOLA ENTERPRISES INC SAID IT INTENDS TO REPURCHASE ABOUT 11 MILLION SHARES OF ITS COMMON STOCK OVER THE NEXT FEW MONTHS ON THE OPEN MARKET OR IN PRIVATE TRANSACTIONS THE ATLANTA BOTTLER SAID THE REPURCHASED SHARES WILL BE USED TO CONVERT A PORTION OF CERTAIN OFFICERS' DEFERRED COMPENSATION PACKAGES TO COCACOLA ENTERPRISES' STOCK AND TO ACQUIRE DMO INC A MIAMI TECHNICAL ENGINEERING FIRM THE FIRM IS CURRENTLY A PRIMARY CONSULTANT TO COCACOLA ENTERPRISES ON DESIGN AND DEVELOPMENT OF CAPITAL PROJECTS COCACOLA ENTERPRISES SAID IT WILL PAY ABOUT 400000 SHARES OF STOCK TO DMO PLUS ADDITIONAL CONSIDERATION IT WOULDN'T ELABORATE FURTHER THE COMPANY SAID THE 11 MILLION SHARE REPURCHASE DOESN'T CONSTITUTE ACTIVATION OF ITS SUSPENDED 15 SHARE REPURCHASE PROGRAM THE COMPANY SAID ABOUT 700000 SHARES FROM THE REPURCHASE WILL BE USED FOR THE OFFICERS' DEFERRED COMPENSATION PLAN COCACOLA ENTERPRISES HAD ABOUT 130 MILLION SHARES OUTSTANDING ON MARCH 31 9305140062 930514 WHAT'S NEWS WORLDWIDE SERB FORCES LAUNCHED A NEW OFFENSIVE IN BOSNIA AHEAD OF A WEEKEND VOTE THE SERBS ATTACKED MUSLIMS IN THE NORTHEASTERN CITY OF BRCKO SEEKING TO CLEAR MORE TERRITORY FOR A GREATER SERBIA THE BOSNIAN GOVERNMENT CLAIMED MUSLIM VILLAGES AROUND THE CITY WERE IN FLAMES ACCORDING TO RADIO REPORTS PRESIDENT CLINTON EXPRESSED SKEPTICISM ABOUT THIS WEEKEND'S BOSNIAN SERB REFERENDUM ON A UNBACKED PEACE TREATY SAYING HE IS WAITING TO SEE WHETHER SERBS ARE READY FOR A SERIOUS PEACE PROCESS IN SOUTHWESTERN BOSNIA SPORADIC SHOOTING CONTINUED IN MOSTAR BETWEEN MUSLIMS AND CROATS DESPITE A TRUCE EUROPEANS WARNED CROATIA IT FACES SANCTIONS IF ATTACKS ON MUSLIMS DON'T STOP ASPIN DECLARED THE END OF THE STAR WARS ERA AND SAID HE IS RENAMING THE PENTAGON AGENCY THAT DEVELOPS ANTIMISSILE DEFENSES TO REFLECT ITS NARROWER SCOPE THE STRATEGIC DEFENSE INITIATIVE ORGANIZATION WILL BECOME THE BALLISTIC MISSILE DEFENSE ORGANIZATION THE DEFENSE SECRETARY SAID BUT ITS PROPOSED 38 BILLION BUDGET FOR 1994 WON'T CHANGE YELTSIN'S OPPONENTS ASKED RUSSIA'S HIGH COURT TO DECIDE WHETHER A NEW CONSTITUTION COULD BE ADOPTED WITHOUT PARLIAMENTARY APPROVAL AN ALLY OF THE PRESIDENT PREDICTED THAT A COMPROMISE WOULD BE REACHED WITH LAWMAKERS SEPARATELY RUSSIA'S DEPUTY ECONOMICS MINISTER SAID THE COUNTRY'S STANDARD OF LIVING MAY NOT RISE FOR TWO YEARS RUSSIA REJECTED PROPOSALS BY FIVE OTHER MEMBERS OF THE COMMONWEALTH OF INDEPENDENT STATES TO PUT THE FORMER SOVIET NUCLEAR FORCES UNDER A JOINT COMMAND AND TO SET UP JOINT ARMED FORCES THE RUSSIANS ARGUED THAT THEY SHOULD HAVE SOLE CONTROL OF THE NUCLEAR ARSENAL AND SAID A JOINT MILITARY WOULD BE TOO COSTLY TO KEEP IN PEACETIME ISRAELIS AND PALESTINIANS ENDED THEIR NINTH ROUND OF WASHINGTON PEACE TALKS WITHOUT REACHING AN AGREEMENT ON THE PRINCIPLES OF PALESTINIAN SELFRULE IN THE WEST BANK AND GAZA STRIP IN JERUSALEM EZER WEIZMAN WAS SWORN IN AS ISRAEL'S SEVENTH PRESIDENT THE NAVY ASSIGNED SIX SENIORRANKING OFFICERS TO SHORE DUTY TO MAKE THEM READILY AVAILABLE TO THE ADMIRAL OVERSEEING THE SERVICE'S TAILHOOK DISCIPLINARY PROCEEDINGS THE GROUP INCLUDES THE EXECUTIVE OFFICER OF THE AIRCRAFT CARRIER USS CONSTELLATION AS WELL AS THE COMMANDER OF THE NAVY'S BLUE ANGELS FLYING TEAM OFFICIALS SAID THE UN WILL WITHDRAW ITS 236 GUARDS PROTECTING KURDS IN NORTHERN IRAQ BECAUSE OF A LACK OF FUNDS A UN OFFICIAL IN BAGHDAD SAID THE FIRST CONTINGENT OF 50 GUARDS WILL BE PULLED OUT TODAY AND TOMORROW AND THE REST ARE TO LEAVE BY MIDJUNE ITALY'S SENATE LIFTED FORMER PREMIER ANDREOTTI'S IMMUNITY CLEARING THE WAY FOR A FULLSCALE INQUIRY INTO THE 74YEAROLD SENATOR'S ALLEGED MAFIA TIES MEANWHILE ITALY'S BRIBERY SCANDAL TOUCHED THE NEW CIAMPI GOVERNMENT AS THE ENVIRONMENT MINISTER WAS TOLD HE WAS BEING INVESTIGATED FOR POSSIBLE ABUSE OF OFFICE IN A PREVIOUS POST CLINTON IS EXPECTED TO NOMINATE FORMER VICE PRESIDENT MONDALE AS AMBASSADOR TO JAPAN EARLIER THIS YEAR MONDALE A FORMER SENATOR FROM MINNESOTA TURNED DOWN A CHANCE TO BE THE ENVOY TO RUSSIA ARTILLERY BATTLES SPREAD INTO THE CENTER OF THE AFGHAN CAPITAL KILLING DOZENS OF PEOPLE AND INJURING 300 FORCES LOYAL TO THE GOVERNMENT ATTACKED SEVERAL REBEL GROUPS IN KABUL'S SUBURBS AS SHIITE GUERRILLAS POUNDED THE CITY WITH ROCKET FIRE JAPAN IS CONSIDERING QUITTING THE INTERNATIONAL WHALING COMMISSION AFTER THE 40NATION GROUP AT A MEETING IN KYOTO REJECTED A JAPANESE REQUEST TO LOOSEN THE MORATORIUM ON WHALE HUNTING NORWAY WHICH HAS WARNED THAT IT ALSO MAY QUIT THE ORGANIZATION REPEATED THAT IT WILL RESUME COMMERCIAL WHALING SOON DESPITE THE BAN A SENATE PANEL ENDORSED A BILL TO EASE LIMITS ON OFFDUTY POLITICAL ACTIVITIES BY FEDERAL EMPLOYEES THE GOVERNMENT AFFAIRS COMMITTEE VOTED 93 TO SEND THE BILL TO THE SENATE AFTER REJECTING GOP AMENDMENTS THAT WOULD HAVE RETAINED CURBS ON CIA JUSTICE DEPARTMENT AND IRS EMPLOYEES TOP EUROPEAN SPACE OFFICIALS VOICED CONCERN ABOUT THE PLANNED US SPACE STATION AS NASA CHIEFS SOUGHT TO ASSURE OTHER NATIONS THAT THE LATEST REDESIGN WON'T CHANGE IT MUCH CLINTON'S ORDER TO REVAMP THE DECADEOLD PROJECT COULD HAVE DISASTROUS EFFECTS IF IT RESULTS IN AN ORBITING LAB UNSUITABLE TO FOREIGN PARTNERS A GERMAN EXECUTIVE SAID 9305140061 930506 MARKETING & MEDIA ADVERTISING CONVERSE SNEAKER SEEKS STATEMENT OF FASHION INSTEAD OF FOUL SHOTS BY KEVIN GOLDMAN CONVERSE'S ALL STAR ATHLETIC SHOE SEEMS TO BE THE FOOTWEAR OF THE FASHIONABLE THESE DAYS APPEARING ON MODELS IN VOGUE ELLE GQ AND ROLLING STONE AND IN RUNWAY SHOWS FOR DESIGNERS SUCH AS PERRY ELLIS ENTERTAINMENT MOGUL DAVID GEFFEN WAS PHOTOGRAPHED WEARING A PAIR RECENTLY WHERE THE SNEAKER ISN'T APPEARING IS ON HIGHLY PAID BASKETBALL PLAYER ENDORSERS EVEN THOUGH CONVERSE STARTED OUT AS A BASKETBALL SHOE WITH 10 MILLION PAIRS OF CONVERSE ALL STARS SOLD LAST YEAR PARENT INTERCO DOESN'T FEEL THE NEED TO FOLLOW IN THE FOOTSTEPS OF ITS LARGER AND MUCH FLASHIER RIVALS INCLUDING NIKE AND REEBOK INTERNATIONAL LTD WHICH PAY BIG BUCKS TO SUCH ATHLETES AS SHAQUILLE O'NEAL AND MICHAEL JORDAN THE COMPANY BASED IN NORTH READING MASS ALSO IS NOT SPENDING THE USUAL HEFTY SUMS ASSOCIATED WITH ATHLETIC SHOE ADS WHILE NIKE AND REEBOK SPENT MORE THAN 80 MILLION APIECE ON ADVERTISING LAST YEAR CONVERSE SPENT ONLY 12 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TRACKS AD SPENDING CONVERSE SAYS PRIVATELY THAT IT SPENT 5 MILLION LAST YEAR ADVERTISING THE ALL STAR ACCORDING TO THE NEWSLETTER SPORTING GOODS INTELLIGENCE NIKE AND REEBOOK ARE FIRST AND SECOND IN THE MARKET FOR ATHLETIC FOOTWEAR WHILE CONVERSE IS SIXTH CONVERSE'S CURRENT AD STRATEGY APPEARS AIMED AT CAPITALIZING ON AN IMAGE BOTH SEXY AND STREETWISE IN A NEW TV SPOT FOR THE ALL STAR A BEAUTIFUL YOUNG WOMAN IS LYING FACE DOWN ON A TABLE AS THE CAMERA PANS DOWN HER BODY IT REVEALS HER PANTS BUNCHED DOWN AROUND HER ANKLES AND SHOWS SHE IS WEARING A PAIR OF CONVERSES IT IS UNCLEAR AS TO WHAT IS GOING ON UNTIL THE VERY END SHE HAS GOTTEN A TATTOO ANOTHER AD TITLED UGLY HAS A MEANLOOKING GUY BARKING INTO THE CAMERA THERE ARE A LOT MORE WHAT YOU CALL UGLY PEOPLE IN THE WORLD THAN BEAUTIFUL PEOPLE WE DON'T HAVE PERFECT AIRBRUSHED BODIES AND WE DON'T WANT THEM WE DON'T WANT TO LIVE IN A BEER COMMERCIAL THE POINT IS NOT TO BE BEAUTIFUL THE POINT IS TO BE YOURSELF THE CAMPAIGN CURRENTLY RUNNING NATIONALLY ON MTV AND THE FOX NETWORK IS AIMED AT BEING EDGY AND PROVOCATIVE SAYS RICH HERSTEK CREATIVE DIRECTOR AT CONVERSE'S BOSTON AD AGENCY HOUSTON EFFLER & PARTNERS CONVERSE SAYS ITS NEW HALFMINUTE SPOTS ARE GEARED AT THE NEW WAVE OF CUSTOMERS MORE INTERESTED IN MAKING A FASHION STATEMENT THAN A FOUL SHOT THESE TYPES OF ADS ARE WHAT PEOPLE IN OUR TARGET MARKET ARE LOOKING FOR SAYS MR HERSTEK THEY AREN'T MEANT TO APPEAL TO THE MAINSTREAM OUR CUSTOMERS HAVE A HIGHER SHOCK THRESHOLD THAN OTHERS THE ALL STAR FORMALLY KNOWN AS THE CHUCK TAYLOR ALL STAR AFTER A COMPANY SALESMAN AND BASKETBALL PLAYER WHO JOINED CONVERSE IN 1921 IS ALSO MEANT TO BE SEPARATED FROM THE PACK OF OTHER CONVERSE ATHLETIC SHOES WE WANT TO DISASSOCIATE THE ALL STAR FROM OUR BASKETBALL SHOES AND BRING IT INTO LIFE IN OUR SPOTS AS A FASHION STATEMENT SAYS KATHY BUTTON CONVERSE'S DIRECTOR OF MARKETING SOME CONVERSE SHOES ARE PLUGGED BY BASKETBALL STARS SUCH AS LARRY JOHNSON OF THE CHARLOTTE HORNETS AND KEVIN JOHNSON OF THE PHOENIX SUNS THE COMPANY ALSO HAS A LONGSTANDING CONTRACT TO PAY 1 MILLION ANNUALLY TO EARVIN MAGIC JOHNSON THOUGH THE CONTRACT DOESN'T EXPIRE UNTIL AUGUST 1994 MR JOHNSON HASN'T APPEARED IN ADS SINCE HE CRITICIZED CONVERSE IN JULY 1992 FOR NOT PROPERLY USING HIM IN THEIR MARKETING OR PROMOTING HIM IN THE HIGH PROFILE WAY CONVERSE RIVALS PROMOTED THEIR ATHLETIC ENDORSERS INITIALLY THE ALL STARS DIDN'T EVEN NEED ADVERTISING TO BECOME FASHIONABLE IT'S UNBELIEVABLE SAYS CANDY PRATTS FASHION DIRECTOR OF SHOES AND ACCESSORIES AT VOGUE WHICH HAS FEATURED THE HIGHTOP SNEAKER IN NUMEROUS LAYOUTS IT'S CONVERSE'S MOMENT IT'S THE CASE OF WHAT IS OLD IS NEW THEY REALLY WORK FOR TODAY'S FASHION OF LOOSEFITTING FLOWING DRESSES THE POPULARITY SOARED SHE ADDS NOT FROM ADVERTISING BUT FROM THE KIDS IN THE STREET THE ALL STAR DID ADVERTISE LAST YEAR ON ITS 75TH ANNIVERSARY BUT ITS SPOTS WERE CONSIDERABLY LESS HIP FEATURING ANIMATION AND THE BULLWINKLE THE MOOSE CHARACTER SOME SPORTS PUNDITS SAY THE ALL STAR DOESN'T NEED A HARD SELL WITH A FAMOUS ENDORSER EVERYONE REMEMBERS CONVERSE SAYS DICK SILVERMAN EDITOR AND ASSOCIATE PUBLISHER OF FOOTWEAR NEWS THEY HAVE A LIFE OF THEIR OWN MOREOVER THE PRICE IS RIGHT A PAIR OF ALL STARS SELLS FOR ABOUT 30 HALF THE PRICE OF THE BIG COMPETING BRANDS IT'S RETROFASHION FOR PEOPLE IN THEIR TEENS AND IN THEIR 30S SAYS 31YEAROLD ALAN FRIEDMAN EDITOR OF TEAM MARKETING REPORT MR FRIEDMAN BOASTS TWO PAIRS OF ALL STARS ONE RED THE OTHER CHECKERBOARD ALTHOUGH HE WEARS NIKE WHEN SHOOTING HOOPS HIS LOVE AFFAIR WITH THE ALL STAR EXTENDED TO HIS 1989 WEDDING WHEN HE GAVE PAIRS OF THE CHUCKS AS THEY ARE SOMETIMES CALLED TO THE MEN IN HIS WEDDING PARTY FOR THE NEW ADS CONVERSE BOUGHT TIME ON MTV AND NEWS CORP'S FOX NETWORK TO REACH ITS TARGET YOUNG HIP AUDIENCE THE ADS WILL RUN THROUGH THIS MONTH AND THEN REAPPEAR ON MTV IN LATE JUNE THE ADS SPECIFICALLY THAT TATTOO SPOT FEATURING THE BLUES SINGER OTIS RUSH WAILING LOVE THAT WOMAN ARE RISKY CONCEDES MR HERSTEK OF THE AGENCY HOUSTON EFFLER BUT HIS MANDATE HE ADDS IS TO FIND ELEMENTS OF THE COUNTERCULTURE THAT WE THINK WILL HAVE SOME APPEAL TO OUR TARGET AUDIENCE A TECHNICAL GLITCH HAS DELAYED UNTIL AUGUST THE LAUNCH OF THE UNMANNED COMET SPACE ROCKET ON WHICH COLUMBIA PICTURES HAS RIDING MAJOR PLANS INCLUDING A GIANT OUTERSPACE BILLBOARD FOR ITS MAJOR SUMMER MOVIE LAST ACTION HERO A COLUMBIA SPOKESMAN SAID THE SONY CORP UNIT STILL INTENDS TO PARTICIPATE IN THE ROCKET LAUNCH THE NEW DATE WILL HELP PROMOTE THE PICTURE NOT ONLY IN ITS DOMESTIC THEATRICAL RUN BUT ALSO AS THE FILM IS RELEASED IN MAJOR TERRITORIES AROUND THE WORLD HE SAID OVERSEAS RELEASES ARE SET FOR LATE SUMMER AND EARLY FALL HE SAID COLUMBIA PICTURES SIGNED UP EARLIER THIS YEAR TO BE THE SOLE ADVERTISER ON THE FUSELAGE OF THE COMET ROCKET PART OF A COMMERCIAL SPACE MISSION FINANCED BY A PRIVATEINDUSTRY CONSORTIUM AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION COLUMBIA PAID 500000 TO PLACE A GIANT VERSION OF THE FILM'S LOGO ON THE ROCKET WHICH WAS ORIGINALLY SCHEDULED FOR A MIDMAY BLASTOFF THAT DATE WAS SUBSEQUENTLY PUSHED BACK TO JUNE 17 THE DAY BEFORE THE RELEASE DATE OF THE MOVIE WHICH STARS ARNOLD SCHWARZENEGGER A MAJOR ENGINEERING PROBLEM IS APPARENTLY BEHIND THE DELAY SAID MICHAEL LAWSON CHIEF EXECUTIVE OF SPACE MARKETING THE ROSWELL GA FIRM THAT PUT TOGETHER THE SPONSORSHIP DEAL BETWEEN THE CONSORTIUM AND COLUMBIA WE KNEW THESE POSSIBILITIES COULD HAPPEN WAY BEFORE SIGNING A CONTRACT THAT'S THE RISK YOU TAKE THE COLUMBIA SPOKESMAN SAID THE ROCKET DELAY WOULDN'T AFFECT ITS OTHER MARKETING PLANS FOR THE FILM THOSE PLANS INCLUDE AN ESTIMATED 20 MILLION TIEIN WITH THE BURGER KING FASTFOOD CHAIN AND AN INITIAL 15 MILLION ADVERTISING CAMPAIGN IT COULDN'T BE DETERMINED HOW THE DELAY WOULD AFFECT THE PROMOTIONAL TIEINS SET FOR THE ACTUAL LAUNCH DATE WHICH INCLUDED HAVING A CONTESTWINNER PUSH THE BLASTOFF BUTTON WITH MR SCHWARZENEGGER ARBITRON CO'S NO 2 EXECUTIVE KEN WOLLENBERG RESIGNED UNEXPECTEDLY THIS WEEK AMID A CONTINUING RESTRUCTURING AT THE TELEVISION AND RADIO RATINGS PROVIDER UNDER NEW PRESIDENT STEVE MORRIS MR WOLLENBERG EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING AND A 23YEAR VETERAN OF THE CERIDIAN CORP UNIT WON'T BE REPLACED MR MORRIS SAID IN AN INTERVIEW HE PRAISED MR WOLLENBERG BUT SAID THE CHANGE WAS NECESSARY TO ELIMINATE MANAGEMENT LAYERS AND SPEED CUSTOMER RESPONSE MR WOLLENBERG COULDN'T BE REACHED TO COMMENT MR MORRIS DENIED INDUSTRY SPECULATION THAT MR WOLLENBERG'S DEPARTURE WAS IN SOME WAY LINKED TO ARBITRON'S CURRENT DISPUTE WITH TWO INDUSTRY GROUPS OVER THE FIRM'S TEST EFFORT TO GET MORE LISTENERS IN ATLANTA TO FILL OUT RATINGS DIARIES RADIO STATIONS ARE RUNNING ONAIR ANNOUNCEMENTS URGING LISTENERS TO PARTICIPATE AND MANY RESEARCHERS ARGUE THE PRACTICE DISTORTS RATINGS RESULTS THE AMERICAN ASSOCIATION OF ADVERTISING AGENCIES WROTE ARBITRON PROTESTING THE TEST AND THE ELECTRONIC MEDIA RATINGS COUNCIL WARNED ARBITRON THIS WEEK THAT IT MAY TAKE THE UNPRECEDENTED STEP OF REVOKING ITS ACCREDITATION OF THE SPRING RATINGS REPORT FOR THE ATLANTA RADIO MARKET BECAUSE OF THE TEST ARBITRON MAINTAINS THE POTENTIAL BENEFITS OF THE TEST OUTWEIGH THE RISKS ACCOUNT USA NETWORKS' SCIFI NETWORK TAPPED AHERN NEW YORK FOR A PRINT AND OUTDOOR TRADE AD CAMPAIGN A NEW ACCOUNT WITH BILLINGS OF 3 MILLION A USA NETWORKS SPOKESMAN SAID A POSSIBLE CONSUMER AD CAMPAIGN COULD FOLLOW ALTHOUGH AN AGENCY DECISION HADN'T BEEN MADE CONVERSE INC SAYS THAT IT HASN'T DISCLOSED THE AMOUNT OF THE CONTRACT IT HOLDS WITH BASKETBALL STAR EARVIN MAGIC JOHNSON TO ENDORSE ITS ALL STAR ATHLETIC SHOES BUT THAT THE 1 MILLION ANNUALLY MENTIONED IN AN ADVERTISING COLUMN MAY 6 IS INCORRECT ALSO THE CONTRACT EXPIRES IN AUGUST 1995 NOT AUGUST 1994 9305140060 930514 BUSINESS BRIEF CITIZEN WATCH CO TOKYO WATCH MAKER'S PROFIT INCREASED 03 IN FISCAL YEAR CITIZEN WATCH CO REPORTED THAT ITS UNCONSOLIDATED PRETAX PROFIT INCHED UP 03 TO 1694 BILLION YEN 1517 MILLION IN THE FISCAL YEAR ENDED MARCH 31 THE TOKYO WATCH MAKER SAID SALES ROSE 69 TO 25243 BILLION YEN 226 BILLION THE DIVIDEND WAS RAISED 13 TO NINE YEN EIGHT CENTS A SHARE FROM EIGHT YEN A SHARE CITIZEN SAID IT FACED SEVERE ECONOMIC CONDITIONS BOTH AT HOME AND ABROAD DURING THE PAST FISCAL YEAR BUT WAS ABLE TO EKE OUT ADVANCES BY CUTTING COSTS AND STRENGTHENING SALES AND PRODUCTION ACTIVITIES THE COMPANY SAID THE RAPID FIRMING OF THE YEN AGAINST OTHER MAJOR CURRENCIES SINCE FEBRUARY AS WELL AS TRADE FRICTIONS LEAVE IT EXPECTING A ROUGH RIDE IN THE CURRENT FISCAL YEAR THROUGH NEXT MARCH FOR THE CURRENT FISCAL YEAR CITIZEN IS FORECASTING PRETAX PROFIT OF ABOUT 17 BILLION YEN ESSENTIALLY FLAT WITH LAST YEAR 9305140059 930514 MARKETING & MEDIA AVON SALES TEST TO PITCH CUSTOMERS WARNACO APPAREL BY SUEIN L HWANG AND TERI AGINS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE AVON LADY MAY SOON BE BREAKING INTO THE UNDERWEAR BUSINESS BEGINNING IN AUGUST AVON PRODUCTS INC WILL RUN A TEST THAT ARMS ITS DOORTODOOR SALES FORCE WITH FALL CATALOGS PEDDLING WARNACO INC'S BRAS AND SLEEPWEAR UNDER THE WARNERS FRUIT OF THE LOOM AND SCAASI LABELS THE TEST WHICH IS EXPECTED TO RUN FOR 10 WEEKS WILL INVOLVE AVON REPRESENTATIVES IN CALIFORNIA OREGON WASHINGTON STATE AND ALASKA IF THE PROGRAM IS SUCCESSFUL THE COMPANY SAID IT WILL CONSIDER EXPANDING IT NATIONWIDE AVON DECLINED TO ELABORATE ON THE DETAILS OF ITS BUSINESS ARRANGEMENT WITH WARNACO WHILE AVON REPRESENTATIVES HAVE OCCASIONALLY SOLD SUCH GARMENTS AS NIGHTSHIRTS OR RAIN SLICKERS THE TEST IS BELIEVED TO BE THE COMPANY'S FIRST FORAY INTO MARKETING APPAREL WITH A NATIONALLY RECOGNIZED BRAND NAME IT ALSO MARKS AN EFFORT BY NEW YORKBASED WARNACO TO EXPLORE NEW CHANNELS OF DISTRIBUTION BEYOND CONVENTIONAL RETAIL CHAINS WARNACO WHICH MARKETS INTIMATE APPAREL AND MENSWEAR UNDER SUCH LABELS AS CHRISTIAN DIOR AND CHAPS BY RALPH LAUREN ALSO DISCLOSED THAT THIS FALL IT WILL MAKE ITS FIRST MOVE INTO TELEVISION SHOPPING ON THE QVC NETWORK AVON OFFICIALS PLAYED DOWN THE SIGNIFICANCE OF THE TEST SAYING THAT IT INVOLVES ONLY A SMALL PERCENTAGE OF ITS REPRESENTATIVES AND CHARACTERIZING IT AS ONE OF MANY DIFFERENT MARKETING STRATEGIES BEING CONSIDERED BUT THE COMPANY ALSO NOTED THAT AVON REPRESENTATIVES IN OTHER COUNTRIES SELL A BROAD RANGE OF ITEMS INCLUDING HOME FURNISHINGS AND TOYS ANALYSTS SAID THE WARNACO TEST MESHES WITH THE COMPANY'S STRATEGY OF USING ITS EXISTING SALES FORCE TO SELL THIRDPARTY BRANDS AVON BASICALLY HAS A UNIQUE AND VERY POWERFUL DISTRIBUTION SYSTEM BUT THE ISSUE IS HOW YOU LEVERAGE THAT SYSTEM SAID JOSEPH KOZLOFF AN ANALYST AT SMITH BARNEY HE NOTED THAT AVON ABANDONED EARLIER EFFORTS TO SELL PANTYHOSE BECUSE THE PRODUCT DIDN'T CARRY SUFFICIENTLY HIGH MARGINS SELLING A STRONG THIRDPARTY BRAND ON WHICH YOU CAN MAKE A DECENT PROFIT IS A NOBRAINER TO ME HE SAID THE LATEST EFFORT COMES AT A TIME WHEN AVON IS TRYING TO REVITALIZE ITS SLUGGISH US BUSINESS WHICH POSTED FLAT SALES IN THE FIRST QUARTER THE COMPANY NOW MAILS CATALOGS TO POTENTIAL CUSTOMERS AND LATE LAST YEAR IT UNVEILED A TELEVISION CAMPAIGN THAT ENCOURAGED WOMEN TO BUY ITS PRODUCTS THROUGH A TOLLFREE 800 NUMBER 9305140058 930514 ARMOREDCAR CASE LEADS TO INDICTMENT FOR BRIBERY THEFT BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL THE OWNERS OF A LONG ISLAND NY ARMOREDCAR COMPANY BRIBED BANK OFFICIALS TO WIN BUSINESS THEN STOLE AS MUCH AS 38 MILLION COLLECTED ON BEHALF OF THE BANKS ACCORDING TO AN INDICTMENT ANNOUNCED YESTERDAY BY A FEDERAL PROSECUTOR THE INDICTMENT OF ROBERT AND SUSANNA SCARETTA OWNERS OF REVERE ARMORED INC OF BOHEMIA NEW YORK COMES THREE MONTHS AFTER SUSPICIOUS BANK OFFICIALS WERE LOCKED OUT OF REVERE'S HEADQUARTERS WHEN THEY CAME TO COUNT THEIR BANKS' MONEY REVERE SERVED AS A STORAGE DEPOT FOR COINS AND CASH COLLECTED FROM HUNDREDS OF MERCHANTS IN THE NORTHEAST THE SCARETTAS WHO ARE HUSBAND AND WIFE PLEADED NOT GUILTY TO CHARGES THAT CARRY MAXIMUM PENALTIES OF 185 YEARS IMPRISONMENT EACH FOUR OTHER PEOPLE INDICTED IN THE CASE INCLUDING REVERE'S ACCOUNTANT TWO EMPLOYEES AND A FORMER BANK CUSTOMER ARE EXPECTED TO PLEAD GUILTY TODAY TO LESSER CHARGES PEOPLE CLOSE TO THE CASE SAY THE FOUR COOPERATED WITH THE GOVERNMENT'S INVESTIGATION THE INDICTMENT HINTED AT FURTHER CHARGES THAT MAY BE BROUGHT AGAINST BANK OFFICIALS WHO SENT BUSINESS TO REVERE THE ONLY SUCH OFFICIAL NAMED YESTERDAY WAS WILLIAM BUTLER OF CORAM NEW YORK WHO RECEIVED THOUSANDS OF DOLLARS IN CASH TO IMPROPERLY USE HIS INFLUENCE TO STEER ARMOREDCAR BUSINESS OF HIS BANK NATIONAL WESTMINSTER BANK TO REVERE THE INDICTMENT SAID MR BUTLER DIDN'T RETURN A TELEPHONE MESSAGE AT HIS HOME UNTIL HE RESIGNED FROM THE BANK AND WENT TO WORK FOR REVERE EARLY LAST YEAR MR BUTLER RAN NATWEST'S MONEY ROOM WHICH KEPT TRACK OF CASH ON HAND A SPOKESMAN FOR THE BANK SAID MR BUTLER DIDN'T HAVE SOLE DISCRETION TO AWARD REVERE BUSINESS AND THE BANK THE US ARM OF BRITAIN'S NATIONAL WESTMINSTER BANK PLC HADN'T BEEN AWARE OF ANY BRIBES AN INVESTIGATION IS CONTINUING INTO POSSIBLE PAYMENTS MADE TO OFFICIALS OF OTHER BANKS A NEWS RELEASE SAID THE INDICTMENT REFERRED TO BRIBES PAID BY THE SCARETTAS AND OTHERS TO MORE THAN ONE BANK OFFICIAL THEY HAD BANK PEOPLE IN THEIR POCKETS ASSISTANT US ATTORNEY DAVE HATTEM WHO IS PROSECUTING THE CASE SAID IN AN INTERVIEW ACCORDING TO THE INDICTMENT THE SCARETTA ROUTINELY FAXED FRAUDULENT PROOF SHEETS OVER A PERIOD OF THREE YEARS WHICH OVERSTATED THE AMOUNT OF MONEY STORED IN THE REVERE VAULT ON BEHALF OF SIX BANKS INCLUDING CITICORP'S CITIBANK AND BANK OF NEW YORK CO WHEN AUDITORS OF ANY ONE BANK INSPECTED THE FACILITY PRIOR TO FEBRUARY THE COMPANY TOOK MONEY BELONGING TO OTHER BANKS AND PUT IT IN THE AREA DESIGNATED FOR THE BANK'S FUNDS THE INDICTMENT SAID THE BANKS AND OTHERS HAVE SUBMITTED CLAIMS OF ABOUT 100 MILLION 38 MILLION MORE THAN THE AMOUNT FOUND ON THE REVERE PREMISES A LLOYDS OF LONDON UNDERWRITING GROUP HAD INSURED REVERE FOR UP TO 100 MILLION THE INDICTMENT DIDN'T SPECIFY HOW MUCH CASH THE SCARETTAS ARE CHARGED WITH STEALING BUT DID STATE IN ONE CHARGE THAT THE SCARETTAS AND OTHERS DID TAKE FOR THEIR OWN PERSONAL USE CASH AND COIN BELONGING TO THE BANKS IT CHARGED THE SCARETTAS USED THE CASH TO GAMBLE IN ATLANTIC CITY PAY NUMEROUS REVERE EMPLOYEES OFFTHEBOOK SALARIES AND BONUSES AND PAY CONSTRUCTION WORKERS OFF THE BOOKS FOR CONSTRUCTION AND RENOVATION WORK AT REVERE AND THE SCARETTAS' RESIDENCE 9305140057 930514 INTERNATIONAL BRIEF ROYAL DUTCH/SHELL GROUP FIRSTPERIOD PROFIT ROSE 12 EXCEEDING ANALYST FORECASTS ROYAL DUTCH/SHELL GROUP REPORTED A RISE IN FIRSTQUARTER PROFIT THAT EXCEEDED ANALYSTS' FORECASTS THE ANGLODUTCH OIL COMPANY SAID PROFIT ON AN ESTIMATED CURRENT COST BASIS WHICH EXCLUDES INVENTORY GAINS OR LOSSES ROSE 12 TO 971 MILLION 149 BILLION IN THE FIRST QUARTER FROM 864 MILLION A YEAR EARLIER PROFIT ALSO WAS HIGHER THAN THE 945 MILLION IN THE LAST QUARTER OF 1992 ON A SOCALLED HISTORIC COST BASIS NET INCOME ROSE 23 TO 945 MILLION FROM 769 MILLION A YEAR EARLIER THE COMPANY SAID SALES ROSE 21 TO 2082 BILLION FROM 1715 BILLION A YEAR EARLIER IT'S AN AMAZING COMPANY SAID ALAN MARSHALL OIL ANALYST AT SWISS BANK CORP IN LONDON THEY DO SEEM TO HAVE MADE A HABIT OF COMING IN HIGHER THAN THE HIGHEST ESTIMATES OF PROFITS THE COMPANY SAID THAT STRONG GROWTH IN DEMAND AND SOLID PROFIT MARGINS IN ASIA HELPED OFFSET THE WEAK EUROPEAN MARKET 9305140056 930514 BUSINESS BRIEF DATA GENERAL CORP COURT REFUSES TO OVERTURN AWARD OWED BY GRUMMAN DATA GENERAL CORP WESTBORO MASS SAID A FEDERAL COURT DENIED MOTIONS BY GRUMMAN CORP TO OVERTURN OR REDUCE A 523 MILLION AWARD TO DATA GENERAL FOR COPYRIGHT INFRINGEMENT THE COURT ALSO DENIED A REQUEST FOR A NEW TRIAL DATA GENERAL SAID IN JANUARY A JURY IN BOSTON RULED GRUMMAN SYSTEMS SUPPORT CORP A GRUMMAN UNIT MUST PAY DAMAGES TO DATA GENERAL FOR COPYRIGHT INFRINGEMENT AND MISAPPROPRIATION OF TRADE SECRETS RELATING TO GRUMMAN'S USE OF DATA GENERAL'S MV/ADEX DIAGNOSTIC SOFTWARE IN THE LATEST RULING JUDGE WALTER JAY SKINNER SAID THAT IN ADDITION TO THE 523 MILLION DAMAGE AWARD DATA GENERAL WILL BE ENTITLED TO RECOVER THE ATTORNEYS' FEES RESULTING FROM FIVE YEARS OF LITIGATION DATA GENERAL A COMPUTER MAKER SAID THOSE FEES TOTAL ABOUT 5 MILLION SUSAN VASSALLO A GRUMMAN SPOKESWOMAN SAID THE BETHPAGE NY AEROSPACE CONCERN IS CONSIDERING ITS OPTIONS WHICH INCLUDE APPEALING THE DECISION 9305140055 930514 INTERNATIONAL BRIEF BRITISH TELECOMMUNICATIONS FIRM REPORTS 66 DECREASE IN 4THPERIOD PRETAX PROFIT WITH A HUGE SALE OF STOCK TWO MONTHS AWAY BRITISH TELECOMMUNICATIONS PLC SURPRISED TRADERS WITH A 66 DROP IN PRETAX PROFIT IN ITS FISCAL FOURTH QUARTER THE DECREASE TO 240 MILLION 3677 MILLION IN THE QUARTER ENDED MARCH 31 FROM 704 MILLION A YEAR EARLIER STEMMED MAINLY FROM A 550 MILLION EXTRA CONTRIBUTION LONDONBASED BT MADE TO CLOSE AN UNEXPECTED DEFICIT IN ITS MAIN EMPLOYEE PENSION FUND BT HAS SLASHED ABOUT 70000 JOBS IN THE PAST THREE YEARS BUT ANALYSTS SAID THEY EXPECT THE MIDJULY SALE OF UP TO 55 BILLION OF BT STOCK BY THE GOVERNMENT TO GO SMOOTHLY YESTERDAY BT'S STOCK CLOSED AT 404 PENCE A SHARE UP 15 PENCE ANALYSTS CITED A BETTERTHANEXPECTED 86 RISE IN BT'S FINAL DIVIDEND TO 945 PENCE A SHARE FROM LAST YEAR'S 87 PENCE AND SIGNS THAT BT'S BASIC TELECOMMUNICATIONSSERVICES BUSINESS IS RECOVERING AFTER MORE THAN TWO YEARS OF A RECESSIONARY SLUMP AFTER ADJUSTING FOR THE ONETIME JOBCUTTING AND PENSIONFUND EXPENSES BT EXECUTIVES INDICATED EARNINGS FROM ITS BASIC BUSINESS ROSE ABOUT 10 FOR THE QUARTER REVENUE ROSE 06 TO 343 BILLION FROM 341 BILLION A YEAR EARLIER 9305140054 930514 POLITICS & POLICY HINSON A MCDONNELL AIDE AND FOUNDER OF MIDWAY AIR IS PICKED TO HEAD FAA BY BRUCE INGERSOLL AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL PRESIDENT CLINTON NOMINATED DAVID HINSON AN AEROSPACE EXECUTIVE AND FORMER CHAIRMAN OF NOWDEFUNCT MIDWAY AIRLINES TO BE HEAD OF THE FEDERAL AVIATION ADMINISTRATION MR HINSON IS SEEN AS WELLCONNECTED AND A GOOD SALESMAN BY HIS PEERS BUT PROBLEMS AT MIDWAY AND MORE RECENTLY AT MCDONNELL DOUGLAS CORP WHERE HE IS JETLINER MARKETING CHIEF HAVE RAISED QUESTIONS ABOUT HIS MANAGERIAL ABILITY IF HE IS CONFIRMED BY THE SENATE AS EXPECTED MR HINSON WILL SEE THAT ABILITY SEVERELY TESTED HE WILL TAKE OVER THE TRANSPORTATION DEPARTMENT'S LARGEST AGENCY AT A TIME WHEN THE US AIRLINE AND AEROSPACE INDUSTRIES ARE STRUGGLING TO PULL OUT OF A PROLONGED FINANCIAL TAILSPIN HE WILL PLAY AN IMPORTANT ROLE IN THE ADMINISTRATION'S EFFORTS TO STRENGTHEN THE COMPETITIVENESS OF BOTH INDUSTRIES AND WILL WORK CLOSELY WITH THE NEWLY NAMED AIRLINE COMMISSION IT'S A BIG JOB THERE'S A LOT TO DO BACK THERE MR HINSON SAID IN A TELEPHONE INTERVIEW FROM HIS OFFICE IN LONG BEACH CALIF BUT HE SAID HE IS PLEASED TO BE ABLE TO PUT SOMETHING BACK INTO THE AVIATIONREGULATION SYSTEM ONE BIG CHALLENGE HE FACES WILL BE TO SPEED UP THE MODERNIZATION OF THE NATION'S AIRTRAFFIC CONTROL SYSTEM CONGRESSIONAL CRITICS CONTEND THE MULTIBILLIONDOLLAR PROJECT WHICH IS RUNNING FAR BEHIND SCHEDULE AND WAY OVER BUDGET HAS BEEN BADLY MISMANAGED BY THE FAA SOME LAWMAKERS SAY IT IS SYMPTOMATIC OF THE AGENCY'S TECHNOLOGYPROCUREMENT PROBLEMS MR HINSON ALSO WILL BE CONFRONTED BY AN ARRAY OF AVIATION SAFETY AND SECURITY PROBLEMS GOVERNMENT ACCIDENT INVESTIGATORS HAVE CRITICIZED THE FAA LATELY FOR FAILING TO ACT ON SOME OF THEIR RECOMMENDATIONS FOR SAFETY PRECAUTIONS THE APPOINTMENT OF THE 60YEAROLD MR HINSON A FORMER NAVAL AVIATOR WITH 35 YEARS IN COMMERCIAL AVIATION ENDED WEEKS OF SPECULATION OVER WHO WILL TAKE OVER THE FAA IT WAS WARMLY RECEIVED BY THE AIR TRANSPORT ASSOCIATION WHICH HAILED MR HINSON AS COMMITTED TO SAFETY AND CONVERSANT IN AVIATION ISSUES HIS TENURE AT MIDWAY AIRLINES WAS MARKED BY AN OUTSTANDING SAFETY RECORD SAID ASSOCIATION PRESIDENT JAMES LANDRY WHILE THE SEARCH FOR A NEW ADMINISTRATOR HAS BEEN LONG THE QUALITY OF THE NOMINEE HAS PROVEN TO BE WORTH THE WAIT CURRENTLY MR HINSON A 1955 UNIVERSITY OF WASHINGTON GRADUATE IS EXECUTIVE VICE PRESIDENT MARKETING AND BUSINESS DEVELOPMENT FOR MCDONNELL DOUGLAS'S DOUGLAS AIRCRAFT CO UNIT BASED IN LONG BEACH HE HAS BEEN AN AIRLINE PILOT FLIGHT INSTRUCTOR AND DIRECTOR OF FLIGHT STANDARDS AND ENGINEERING AMONG OTHER THINGS FOR SEVERAL AIRLINES HE HELPED FOUND CHICAGOBASED MIDWAY IN 1978 MR HINSON'S APPOINTMENT WON PRAISE FROM MANY IN THE INDUSTRY INCLUDING TOP EXECUTIVES AT AIRLINES AND RIVAL COMPANIES SUCH AS BOEING CO BUT PRIVATELY SOME INDUSTRY EXECUTIVES DOUBT HIS MANAGERIAL ACUMEN SOME SAW HIS COSTLY DECISION AS CHAIRMAN OF CHICAGOBASED MIDWAY TO EXPAND SERVICE INTO A PHILDELPHIA HUB AS A POORLY PLANNED AND INADEQUATELY FINANCED MOVE THAT ULTIMATELY LED TO THE AIRLINE'S DEMISE MR HINSON HAS SAID THAT THE MOVE WOULD HAVE SUCCEEDED IF NOT FOR THE AIRLINE RECESSION THAT RESULTED FROM FUELPRICE INCREASES AND DECLINES SPAWNED BY THE ONSET OF THE PERSIAN GULF WAR AT DOUGLAS AIRCRAFT WHICH IS MCDONNELL DOUGLAS'S COMMERCIAL AIRPLANE UNIT BASED IN LONG BEACH MR HINSON HAS BEEN AN UNSWERVING OPTIMIST AN INNOVATIVE MARKETER AND A RESILIANT ADVOCATE FOR THE COMPANY'S PRODUCTS BUT HE HAS FAILED TO MUSTER ANY SALES OF SIGNIFICANCE SINCE HE TOOK THE JOB 16 MONTHS AGO MR HINSON HAS BLAMED THE SEVERE DOWNTURN IN AIRLINES' HEALTH AS THE PRIMARY CAUSE FOR THE SALES SLUMP AND HE HAS VOWED THAT SEEDS SOWN DURING HIS TENURE AT THE COMPANY WILL PAY OFF SOON IN JET SALES INTERNALLY SOME MANAGERS AT MCDONNELL DOUGLAS SUGGEST THAT HE HAS BEEN HAMSTRUNG BY THE UNWILLINGNESS OF EXECUTIVES AT THE PARENT COMPANY IN ST LOUIS TO PROVIDE FINANCING TO AIRLINES THAT ARE WILLING TO BUY JETLINERS 9305140053 930514 YOUR MONEY MATTERS WEEKEND REPORT THOSE FUND DOGS CAN PROVE TO BE REAL HEROES BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU'RE A MUTUALFUND INVESTOR WHO'S TEMPTED TO BET ON A BEATENUP SECTOR OF THE STOCK MARKET HERE'S A SUGGESTION CONSIDER BUYING A FUND THAT HAS BEEN A REAL DOG CRAZY ADVICE MAYBE NOT FUND ANALYSTS FREQUENTLY ADVISE INVESTORS BETTING ON A REBOUND TO BUY FUNDS THAT HELD UP WELL WHEN THE SECTOR WAS OUT OF FAVOR THE EVIDENCE SUGGESTS HOWEVER THAT BEARMARKET HEROES OFTEN TURN INTO BULLMARKET WIMPS AND THAT FUNDS THAT FARED POORLY DURING THE LEAN YEARS OFTEN OUTPERFORM WHEN THE SECTOR GETS HOT THE REASON THE FUNDS THAT GOT BLUDGEONED DURING THE BEAR MARKET WERE BADLY HURT BECAUSE THEY WERE MOST TRUE TO THEIR INVESTMENT STYLE WHEN THEIR STYLE RETURNS TO FAVOR THESE FUNDS ARE MORE LIKELY TO ROAR AHEAD THIS IS PARTICULARLY PERTINENT RIGHT NOW FOR INVESTORS EAGER TO JUMP ON THE REBOUND IN FOREIGNSTOCK FUNDS THESE FUNDS SUFFERED MIGHTILY IN THE FOUR YEARS THROUGH LAST DECEMBER SCORING AVERAGE GAINS OF JUST 19 COMPARED WITH 742 FOR DIVERSIFIED US STOCK FUNDS ACCORDING TO FUND RESEARCHERS LIPPER ANALYTICAL SERVICES BUT SOME FOREIGN FUNDS FARED MUCH BETTER THAN THE 19 AVERAGE EITHER BECAUSE THEY AVOIDED THE HARDHIT JAPANESE MARKET OR BECAUSE THEY INCLUDED SOME US STOCKS IN THEIR PORTFOLIO INDEED THE TOP PERFORMERS IN THE PERIOD WERE SOCALLED GLOBAL FUNDS WHICH BUY US AND FOREIGN STOCKS THESE FUNDS RETURNED AN AVERAGE 285 DURING THE FOURYEAR DRY SPELL BUT WITH FOREIGN STOCKS BOUNCING BACK GLOBAL FUNDS NO LONGER LOOK TO BE SUCH A SMART BET DRAGGED DOWN BY THEIR US STOCK HOLDINGS THESE FUNDS ROSE AN AVERAGE 83 IN THE FIRST FOUR MONTHS OF 1993 VERSUS 128 FOR ALL FOREIGNSTOCK FUNDS MEANWHILE THE BIG WINNERS THIS YEAR HAVE BEEN FUNDS THAT INVEST EXCLUSIVELY ABROAD ESPECIALLY THOSE WITH BIG JAPANESE EXPOSURE DFA JAPANESE SMALL COMPANY PORTFOLIO FOR INSTANCE IS THE SECONDBEST PERFORMING FOREIGN FUND THIS YEAR SOARING 405 DURING THE PRIOR FOUR YEARS IT WAS THE BIGGEST LOSER AMONG FOREIGN FUNDS PLUNGING 27 THE FUND THAT HAS PERFORMED EVEN BETTER THAN DFA THIS YEAR CAPSTONE NIKKO JAPAN FUND WASN'T AROUND FOR THE ENTIRE FOURYEAR BEAR MARKET IT'S LIKE YOU'RE VERIFYING THE BIBLE THE FIRST WILL BE LAST AND THE LAST WILL BE FIRST SAYS KURT BROUWER AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BROUWER & JANACHOWSKI FUND ANALYST JOHN REKENTHALER SAYS INVESTORS SHOULDN'T BE SURPRISED IT'S RARE TO FIND A FUND THAT SPARKLES IN BULL AND BEAR MARKETS HE SAYS WITH LUCK YOU MIGHT BE ABLE TO FIND A FUND THAT HOLDS ITS OWN IN UNFAVORABLE MARKETS AND TAKES ADVANTAGE OF FAVORABLE MARKETS SAYS MR REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER BUT THE FUNDS THAT FIT THAT BILL FORM A PRETTY SMALL SELECT LIST HE SAYS IN FACT GAM INTERNATIONAL FUND GAM PACIFIC BASIN FUND AND GTPACIFIC GROWTH FUND ARE THE ONLY FOREIGNSTOCK FUNDS THAT HAVE RANKED AMONG THE TOP 25 OF FOREIGN FUNDS FOR BOTH THE FOURYEAR BEAR MARKET AND THIS YEAR'S RALLY THE TENDENCY FOR SINNERS TO TURN INTO WINNERS ISN'T CONFINED TO FOREIGNSTOCK FUNDS DURING THE PAST 30 MONTHS THERE HAS BEEN A SHARP SNAP BACK BY HIGHYIELD JUNKBOND FUNDS AND SMALLCOMPANY STOCK FUNDS WHICH FUNDS HAVE PERFORMED THE BEST IN BOTH CASES SOME OF THE BIGGEST GAINS HAVE BEEN RACKED UP BY THE FUNDS THAT PERFORMED WORST DURING THE PRIOR BEAR MARKET IN THE 198990 JUNKBOND BEAR MARKET JUNK FUNDS TUMBLED AN AVERAGE 162 AMONG THE 66 FUNDS THAT WERE AROUND FOR THE BEAR MARKET THE BESTPERFORMING 33 FUNDS FELL 108 WHILE THE WORSTPERFORMING 33 NOSEDIVED 216 AND HOW HAVE THESE FUNDS PERFORMED IN THE SUBSEQUENT REBOUND THE 33 BEARMARKET HEROES ARE UP 68 WHILE THE BEARMARKET VILLAINS HAVE SURGED 832 INDEED EVERY ONE OF THE DOZEN TOPPERFORMING JUNK FUNDS IN THE RECENT RECOVERY PERFORMED WORSE THAN AVERAGE DURING THE PRECEDING BEAR MARKET MORNINGSTAR'S MR REKENTHALER NOTES THAT MANY OF THE JUNK FUNDS THAT GOT HIT THE HARDEST IN THE BEAR MARKET HAD HEFTY HOLDINGS OF BONDS WITH DISMAL CREDIT RATINGS WHEN THE JUNKBOND MARKET BOUNCED BACK IN ANTICIPATION OF AN ECONOMIC RECOVERY THESE LOWQUALITY BONDS SKYROCKETED SMALLCOMPANY STOCK FUNDS HAVE SOARED AN AVERAGE 887 SINCE OCTOBER 1990 WHEN SMALL STOCKS BOTTOMED OUT AND BEGAN THEIR SHARP 30MONTH RECOVERY THE FUNDS THAT HAVE DAZZLED IN THIS PERIOD ARE THOSE THAT DID WORST DURING THE PRIOR FIVE YEARS IF YOU BOUGHT THE FUNDS THAT RANKED IN THE BOTTOM 50 OF ALL SMALLSTOCK FUNDS FOR THE FIVE YEARS ENDED OCTOBER 1990 YOU WOULD HAVE GAINED 978 DURING THE RECENT RALLY BUT IF YOU STUCK INSTEAD WITH THE TOP PERFORMERS FROM THE 198590 PERIOD YOU WOULD HAVE GAINED A MORE MODEST 815 WHY THIS PATTERN THE SMALLCAP FUNDS THAT DID THE WORST IN THE BEAR MARKET WERE THE ONES THAT WERE TRULY IN SMALLCAPS SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER THE GUYS WHO DID WELL IN THAT PERIOD WERE THE GUYS WHO DIDN'T REALLY OWN SMALLCAPS THEY OWNED MIDCAPS MR PERRITT NOTES THAT WHILE MIDSIZED COMPANIES WEREN'T HIT SO HARD DURING THE SMALLSTOCK BEAR MARKET THEY ALSO HAVEN'T BOUNCED BACK SO SMARTLY DURING THE PAST 30 MONTHS AS A RESULT FUNDS THAT ARE HEAVILY INVESTED IN MIDSIZED COMPANIES HAVE GONE FROM BEING BEARMARKET LEADERS TO BULLMARKET LAGGARDS DESPITE THE EVIDENCE THAT ROTTEN BEARMARKET PERFORMERS TEND TO SPARKLE DURING SUBSEQUENT BULL MARKETS ANALYSTS ARE UNWILLING TO ADVOCATE BUYING FUNDS JUST BECAUSE THEY HAVE LOUSY BEARMARKET RECORDS AFTER ALL A FUND MAY HAVE A WEAK RECORD NOT BECAUSE IT STUCK WITH ITS INVESTMENT STRATEGY BUT BECAUSE THE FUND'S MANAGER IS INCOMPETENT SHOULD YOU BUY THE FUNDS THAT PERFORM THE WORST I'D BE RELUCTANT TO USE THAT AS A RULE OF THUMB SAYS KENNETH GREGORY EDITOR OF THE NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER INSTEAD MR GREGORY SAYS INVESTORS SHOULD LOOK AT THE TOP BEARMARKET PERFORMERS AND TRY TO FIGURE OUT WHY EACH FUND MADE THE LIST HAS A FUND SPARKLED BECAUSE IT'S RUN BY AN ESPECIALLY ASTUTE MONEY MANAGER OR HAS IT BENEFITED SIMPLY BECAUSE THE FUND IS MORE CONSERVATIVE OR HAS AN INVESTMENT CHARTER THAT'S SLIGHTLY DIFFERENT FROM COMPETING FUNDS A GOOD INVESTOR SHOULD ASK WHY THINGS HAPPEN SAYS MR GREGORY YOU HAVE TO GO BEYOND THE NUMBERS IF YOU DO THAT YOU MIGHT BE ABLE TO SPOT THOSE RARE FUND MANAGERS WHO BECAUSE OF AN EXCEPTIONAL ABILITY TO PICK WINNING STOCKS AND BONDS PERFORM REASONABLY WELL IN BULL AND BEAR MARKETS AMONG FOREIGN FUNDS FOR INSTANCE MR GREGORY FAVORS HARBOR INTERNATIONAL FUND AND WARBURG PINCUS INTERNATIONAL EQUITY FUND NEITHER FUND CHARGES A SALES COMMISSION OR LOAD BOTH ARE SOCALLED INTERNATIONAL FUNDS WHICH MEANS THEY INVEST EXCLUSIVELY IN FOREIGN STOCKS THE TWO FUNDS DID WELL DURING THE LEAN YEARS FOR FOREIGNSTOCK FUNDS THOUGH THEY DIDN'T DO AS WELL AS SOME GLOBAL FUNDS WITH THEIR MIX OF US AND FOREIGN STOCKS BUT THAT DOESN'T FAZE MR GREGORY GLOBAL FUNDS HAVE HAD AN ADVANTAGE IN RECENT YEARS SOLELY BECAUSE OF THEIR INVESTMENT PARAMETERS HE SAYS IF SOMEONE IS SETTING OUT TO BUILD UP THE INTERNATIONAL COMPONENT IN THEIR PORTFOLIO IT MAKES SENSE TO USE AN INTERNATIONAL FUND YOU WANT TO BUY A FUND THAT'S A PURE PLAY 9305140052 930514 ENTERTAINMENT MUSIC FIRMS VOW TO BLOCK NEW CD SYSTEM BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE WORLD'S LEADING RECORD COMPANIES HAVE VOWED TO OBSTRUCT A PLAN BY INTERNATIONAL BUSINESS MACHINES CORP AND BLOCKBUSTER ENTERTAINMENT CORP TO MAKE COMPACT DISKS IN RECORD STORES EARLIER THIS WEEK IBM AND BLOCKBUSTER SAID THEY ARE FORMING TWO JOINT VENTURES TO MARKET INSTORE SYSTEMS THAT COULD PRODUCE CDS ON DEMAND VASTLY INCREASING THE SELECTION AVAILABLE TO CONSUMERS THE ELECTRONIC TECHNOLOGY UNDER DEVELOPMENT COULD ALSO BE USED TO MAKE AND SELL COMPUTER SOFTWARE VIDEO GAMES AND OTHER PRODUCTS AS WELL THE TWO COMPANIES SAID MUSIC INDUSTRY REACTION WAS SWIFT FIERCE AND ALMOST ENTIRELY NEGATIVE WITH MOST OF THE BIG SIX DISTRIBUTORS SAYING THEY WEREN'T APPROACHED AND WON'T COOPERATE IBM AND BLOCKBUSTER MADE A MAJOR GAFFE BY ISSUING ANNOUNCEMENTS WITHOUT CONTACTING THE RECORD COMPANIES SAID MICHAEL SCHULHOF CHAIRMAN OF SONY CORP'S SONY USA WHOSE LABELS INCLUDE COLUMBIA RECORDS AND EPIC RECORDS ALL PREVIOUS ATTEMPTS AT INSTORE REPLICATION SERVICES HAVE FAILED AND THERE'S NO REASON TO BELIEVE THIS ONE WON'T SONY ISN'T GOING TO PARTICIPATE AT TIME WARNER INC'S WARNER MUSIC GROUP CHAIRMAN ROBERT MORGADO SAID THE ARROGANCE AND I UNDERLINE THAT WORD OF PEOPLE WHO WANT TO ESTABLISH A BASIS IN A BUSINESS WITHOUT THE COURTESY OF TALKING TO THE PEOPLE UPON WHOM THEY WILL BE DEPENDENT AMAZES ME MR MORGADO ADDED THAT THE IBM/BLOCKBUSTER PLAN DOESN'T MAKE ECONOMIC SENSE OUR CD PLANTS RUN SEVEN DAYS A WEEK 360 DAYS A YEAR TO PRODUCE ALL THAT WE NEED HOW MANY MACHINES WOULD A STORE NEED WHY WOULD CONSUMERS WAIT SIX MINUTES HOW WOULD THEY CONTROL THE QUALITY THE RECORD LABELS AGREE THAT ELECTRONIC DELIVERY WILL BE A MAJOR FACTOR IN COMING YEARS BUT SAY THEY AREN'T GOING TO HAND THEIR DISTRIBUTION OVER TO AN OUTSIDER AL TELLER CHAIRMAN OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA MUSIC GROUP SAYS HIS COMPANY HAS BEGUN WORKING ON AN ELECTRONIC DISTRIBUTION SYSTEM I BELIEVE THAT EACH COMPANY WILL HAVE AN ELECTRONIC WAREHOUSE OF ITS OWN REACHABLE THROUGH A STANDARDIZED DEVICE IN RECORD STORES SAID MR TELLER THERE WILL CLEARLY BE ELECTRONIC DELIVERY BUT I BELIEVE THE STRUCTURE OF DISTRIBUTION FROM THE MAJORS WON'T CHANGE JASON BERMAN PRESIDENT OF THE RECORDING INDUSTRY ASSOCIATION OF AMERICA A TRADE GROUP SAID THAT WHEN HE READ EARLY PRESS REPORTS THAT IBM AND BLOCKBUSTER MIGHT DEVELOP AN ELECTRONICDISTRIBUTION SYSTEM HE WROTE TO THE COMPANIES I INFORMED THEM THAT ANY SUCH SYSTEM WOULD REQUIRE LICENSES FROM THE RECORD COMPANIES AND I GOT A LETTER BACK THAT SAID SIMPLY THANK YOU FOR YOUR LETTER' SAYS MR BERMAN HE ADDED IF A SYSTEM LIKE THIS COULD HELP RETAILERS KEEP IN STOCK SPECIALIZED BACKCATALOG MATERIAL THE LABELS MIGHT WELCOME IT BUT I'M STAGGERED BY THE WAY THEY'VE APPROACHED THIS GIVEN HOW IT WAS STARTED I'M EXTREMELY DOUBTFUL THAT THIS PROJECT WILL GET FAR EXECUTIVES AT IBM AND BLOCKBUSTER STRESSED THE FLEDGLING NATURE OF THEIR PROJECT AND SAID THEY REALIZE THE IMPORTANCE OF MUSIC INDUSTRY COOPERATION WE HAVE SAID MANY TIMES THAT THERE IS A LOT OF WORK TO BE DONE SAID GREG FAIRBANKS CHIEF FINANCIAL OFFICER FOR BLOCKBUSTER WE NEVER SAID THAT ALL OR EVEN A SUBSTANTIAL SHARE OF MUSIC SALES WILL BE MADE VIA THIS SYSTEM WE VIEW IT AS A GOOD INVENTORYMANAGEMENT SYSTEM WHICH WILL ALLOW STORES TO NEVER RUN OUT OF STOCK BASED IN FORT LAUDERDALE FLA BLOCKBUSTER HAS ONLY BEEN IN THE MUSICRETAILING BUSINESS SINCE NOVEMBER WHEN IT ACQUIRED SOUND WAREHOUSE AND MUSIC PLUS TWO LARGE CHAINS DAVID LUNDEEN PRESIDENT OF NEW LEAF ENTERTAINMENT CORP THE JOINTVENTURE COMPANY DEVELOPING THE TECHNOLOGY SAID HE IS INVITING THE LABEL HEADS DOWN TO SEE OUR PROTOTYPE TECHNOLOGY WE UNDERSTAND THIS WILL REQUIRE THE COOPERATION OF THE ENTIRE INDUSTRY BUT SOMEBODY HAS TO GET THE BALL ROLLING EXECUTIVES AT EMI MUSIC A UNIT OF THORN EMI PLC COULDN'T BE REACHED FOR COMMENT AND BERTELSMANN AG'S BERTELSMANN MUSIC GROUP DECLINED TO COMMENT JIM CAPARRO HEAD OF DISTRIBUTION FOR POLYGRAM SAID HE DISCUSSED SOME OF THE ISSUES IN THE PLAN SEVERAL WEEKS AGO WITH BLOCKBUSTER'S VICE CHAIRMAN STEVE BERRARD SINCE POLYGRAM IS 80OWNED BY PHILIPS ELECTRONICS NV WHICH ALSO OWNS ABOUT 6 OF BLOCKBUSTER MR CAPARRO SAID THAT THE ANNOUNCEMENT WAS PREMATURE ADDING CONVERSATIONS SHOULD HAVE BEEN CONDUCTED PRIOR TO THE ANNOUNCEMENT WITH THOSE COMPANIES AFFECTED BY IT HE SAID THAT WHILE ELECTRONIC DELIVERY IS INEVITABLE HE DOESN'T BELIEVE THAT IT WILL ELIMINATE THE RETAILSHOPPING EXPERIENCE MR TELLER OF MCA EXPRESSED SIMILAR VIEWS IN A RECENT EDITORIAL IN BILLBOARD SAYING THAT TECHNOLOGY SHOULD BE USED TO HELP TRANSFORM RECORD STORES INTO A STIMULATING CENTER OF BROWSING SAMPLING AND SOCIAL INTERACTION 9305140051 930514 MARKETING BRIEF TIME WARNER INC FIRM PURCHASES 50 INTEREST IN LONGDISTANCE PROVIDER A TIME WARNER INCRELATED COMPANY SAID IT PURCHASED A 50 STAKE IN METROCOMM A COLUMBUS OHIO PROVIDER OF LONGDISTANCE TELECOMMUNICATIONS SERVICES TERMS WEREN'T DISCLOSED METROCOMM WHICH HAS INSTALLED ABOUT 80 MILES OF FIBER OPTIC CABLE IN THE COLUMBUS AREA SINCE 1991 HELPS CONNECT MAJOR TELEPHONE USERS WITH THEIR LONGDISTANCE PROVIDERS TO CARRY VOICE DATA AND VIDEO SIGNALS THE ALLIANCE WITH METROCOMM IS THE FIRST STEP IN A SERIOUS PROGRAM TO ENTER THE COMPETITIVE LONGDISTANCE ACCESS BUSINESS IN A MEANINGFUL WAY SAID GLENN BRITT CHAIRMAN OF TIME WARNER AXS HOLDINGS THE UNIT THAT IS PURCHASING THE METROCOMM STAKE THE JOINTLYOWNED COMPANY WILL BE KNOWN AS METROCOMM AXS TIMEWARNER AXS IS A UNIT OF TIME WARNER ENTERTAINMENT IN WHICH TIME WARNER HAS AN 87 STAKE 9305140050 930512 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 9305140049 930514 WHAT'S NEWS BUSINESS AND FINANCE CLINTON'S TAX PROGRAM INCLUDING HIGHER TAXES FOR UPPERINCOME PEOPLE AND A BASIC LEVY ON ENERGY USE WAS APPROVED LARGELY INTACT BY THE HOUSE WAYS AND MEANS COMMITTEE THE PANEL ADDED A TAX ON IMPORTED PRODUCTS THAT USE A LOT OF ENERGY WHEN MADE A 14YEAR WRITEOFF PERIOD FOR SOME INTANGIBLE ASSETS AND A REPEAL OF A TAX ON LUXURY GOODS CONSUMER PRICES JUMPED 04 IN APRIL INDICATING THAT INFLATION IS PICKING UP STEAM FASTER THAN ECONOMIC GROWTH IS RETAIL SALES MEANWHILE CLIMBED 12 LAST MONTH AFTER A 08 WEATHERRELATED DROP IN MARCH ANALYSTS SAID THE PRICE PICKUP IS HARD TO UNDERSTAND GIVEN THE SLOW ECONOMY STOCK AND BOND PRICES TUMBLED ON THE INFLATION REPORT WHILE THE DOLLAR ROSE THE DOW JONES INDUSTRIALS SANK 3432 POINTS TO 344799 THE 30YEAR TREASURY BOND'S PRICE SKIDDED 1 1/4 POINTS PUSHING ITS YIELD UP TO 695 GOLD PRICES RALLIED ON THE PRICE DATA HEALTH ADVISERS IN THE CLINTON ADMINISTRATION ARE STRONGLY CONSIDERING REQUIRING MANY LARGE COMPANIES TO PAY A FAR BIGGER PAYROLL TAX THAN MOST SMALLER COMPANIES IN THE EARLY YEARS OF THE PRESIDENT'S HEALTHCARE PLAN EUROPEAN MONETARY OFFICIALS DEVALUED THE SPANISH PESETA AND THE PORTUGUESE ESCUDO IN RESPONSE TO SPECULATIVE PRESSURE ON THE CURRENCIES SPAIN'S GOVERNMENT SAID THE MOVE WOULD ALLOW IT TO LOWER INTEREST RATES IN HOPES OF AIDING THE NATION'S ECONOMY SALES OF USBUILT CARS AND LIGHT TRUCKS STALLED IN EARLY MAY LEAVING AUTO MAKERS UNSURE ABOUT SHORTTERM PROSPECTS FOR A SOLID SALES RECOVERY SALES WERE UP SHARPLY FROM A YEAR EARLIER BUT WERE DOWN FROM APRIL'S LEVEL GENERAL MOTORS SAID ITS UNFUNDED PENSION LIABILITY MAY RISE BY 5 BILLION OR 35 THIS YEAR REQUIRING A 18 BILLION NONCASH CHARGE AGAINST EQUITY THE AIR FORCE MAY BUY UP TO 5 BILLION OF BOEING WIDEBODY JETS IN A MOVE THAT ULTIMATELY COULD HAMPER FUNDING FOR THE CONTROVERSIAL MCDONNELL DOUGLAS C17 MILITARY TRANSPORT SUCH A SALE COULD ALSO HURT LOCKHEED LEADING RECORD COMPANIES VOWED TO OBSTRUCT A PLAN BY IBM AND BLOCKBUSTER TO MARKET A SYSTEM TO MAKE COMPACT DISKS IN MUSIC STORES GPA GROUP'S BONDS MORE THAN DOUBLED IN PRICE AFTER THE JETLEASING COMPANY AGREED TO SELL 135 BILLION IN PLANES TO A GENERAL ELECTRIC UNIT BUT THE IRISH COMPANY HELD OFF PROMISING TO MEET ITS COMING BOND PAYMENTS CLINTON NOMINATED DAVID HINSON AN AEROSPACE EXECUTIVE AND FORMER CHAIRMAN OF NOWDEFUNCT MIDWAY AIRLINES TO BE HEAD OF THE FAA A HOUSE PANEL DELAYED ACTION ON CLINTON'S SCALEDBACK REQUEST FOR 920 MILLION IN JOBS AND PUBLICWORKS FUNDS AMID A FAILURE TO COME UP WITH SPENDING CUTS TO FINANCE THE MEASURE DAIMLERBENZ'S PROFIT PLUNGED 96 IN THE FIRST QUARTER AND ITS SALES SLID 19 AS GERMANY'S RECESSION TOOK ITS TOLL ON THE NATION'S AUTO MAKERS SALES ALSO FELL AT BMW AND VOLKSWAGEN JAPANESE AUTHORITIES RAIDED A REGIONAL CONSTRUCTION ASSOCIATION AS PART OF A CRACKDOWN ON COLLUSION AND CORRUPTION IN THE BUILDING INDUSTRY AMID CRITICISM AT HOME AND ABROAD BONDS LEHMAN BROTHERS TREASURY INDEX 506107 OFF 4845 COMMODITIES OIL 1978 A BARREL OFF 42 CENTS DOW JONES FUTURES INDEX 12209 UP 046 SPOT INDEX 12099 UP 100 DOLLAR 11188 YEN UP 033 16160 MARKS UP 00060 9305140048 930514 BUSINESS BRIEF BALDWIN PIANO & ORGAN CO PERIDOT'S AGREEMENT TO BUY MANUFACTURER EXPIRES SOON BALDWIN PIANO & ORGAN CO SAID AN AGREEMENT IN PRINCIPLE FOR ITS ACQUISITION BY PERIDOT ASSOCIATES INC WILL LIKELY EXPIRE SUNDAY THE CINCINNATI MANUFACTURER SAID ACTIVE DISCUSSIONS BETWEEN THE TWO COMPANIES ARE NO LONGER CONTINUING RS HARRISON BALDWIN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE TRANSACTION JUST HASN'T COME TOGETHER HE ADDED THAT IT'S A SAFE ASSUMPTION TO CONCLUDE THAT PERIDOT HAD TROUBLE OBTAINING FINANCING FOR THE TRANSACTION OFFICIALS WITH PERIDOT A WEST PALM BEACH FLA INVESTMENT GROUP DIDN'T RETURN PHONE CALLS BALDWIN'S STOCK WAS QUOTED AT 17 UP 25 CENTS IN NATIONAL OVERTHECOUNTER TRADING LATE YESTERDAY BALDWIN AND PERIDOT HAD TWICE EXTENDED THE AGREEMENT IN PRINCIPAL THAT WAS ORIGINALLY ANNOUNCED IN JANUARY PERIDOT'S TROUBLE FINDING FINANCING WAS CITED AS A REASON FOR THE SECOND EXTENSION THE INVESTMENT GROUP HAD PLANNED TO PAY 62 MILLION OR 1825 A SHARE FOR BALDWIN 9305140047 930514 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 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 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 303 30 TO 59 DAYS 304 60 TO 89 DAYS 305 90 TO 149 DAYS 308 150 TO 179 DAYS 310 180 TO 239 DAYS 313 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 310 30 DAYS 310 60 DAYS 312 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 261 TWO MONTHS 263 THREE MONTHS 269 SIX MONTHS 293 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 307 THREE MONTHS 312 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 3 60 DAYS 302 90 DAYS 302 120 DAYS 305 150 DAYS 305 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 1/8 3 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 3/16 3 1/16 FOUR MONTHS 3 1/4 3 1/8 FIVE MONTHS 3 1/4 3 1/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 3/16 THREE MONTHS 3 1/4 SIX MONTHS 3 1/2 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 10 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 289 13 WEEKS 299 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 718 60 DAYS 729 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 722 60 DAYS 732 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 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 9305140046 930514 BUSINESS BRIEF BERNARD CHAUS INC LOSS TOTALING 36 MILLION POSTED FOR FISCAL 3RD PERIOD BERNARD CHAUS INC REPORTED A 36 MILLION LOSS IN ITS FISCAL THIRD QUARTER REFLECTING THE WEAK RETAIL ENVIRONMENT BUT THE COMPANY PREDICTED A RETURN TO PROFITABILITY BY ITS FISCAL FIRST QUARTER FOR THE QUARTER ENDED MARCH 31 THE NEW YORKBASED WOMEN'S SPORTSWEAR MAKER POSTED THE LOSS OF 19 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 17 MILLION OR NINE CENTS A SHARE THE LOSS INCLUDED AN EXTRAORDINARY TAX CHARGE OF 866000 FROM USE OF NET OPERATINGLOSS CARRYFORWARDS COMPARED TO THE YEAREARLIER TAX BENEFIT OF 614000 REVENUE FELL 16 TO 554 MILLION FROM THE YEARPRIOR 656 MILLION BERNARD CHAUS STOCK FELL 25 CENTS TO CLOSE AT 375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9305140045 930514 TECHNOLOGY BRIEF MEDCO RESEARCH INC FIRM SAYS CANADA CLEARED SALE OF ITS HEART DRUG MEDCO RESEARCH INC SAID THE CANADIAN GOVERNMENT APPROVED COMMERCIAL SALE OF MEDCO'S ADENOCARD DRUG FOR TREATMENT OF A TYPE OF RAPID HEART BEAT THAT ORIGINATES IN THE HEART'S UPPER CHAMBER THE LOS ANGELES DRUG DEVELOPER SAID IT EXPECTS ADENOCARD TO BE LAUNCHED IN CANADA BY SEPTEMBER AT A PRICE COMPARABLE TO THAT CHARGED IN THE US ADENOCARD SELLS FOR ABOUT 20 FOR EACH SIXMILLIGRAM DOSE USUALLY SUFFICIENT TO RESTORE THE HEART'S NORMAL RHYTHM ADENOCARD HAS BEEN SOLD IN THE US SINCE DECEMBER 1989 BY MEDCO'S LICENSEE THE US ARM OF JAPAN'S FUJISAWA PHARMACEUTICAL CO ADENOCARD SALES LAST YEAR WERE ABOUT 20 MILLION MEDCO SAID ADENOCARD ISN'T INVOLVED IN A DISPUTE BETWEEN MEDCO AND FUJISAWA OVER ANOTHER MEDCO HEART DRUG ADENOSCAN 9305140044 930514 BUSINESS BRIEF DIBRELL BROTHERS INC TOBACCO AND FLOWER FIRM'S FISCAL 3RDPERIOD NET ROSE DIBRELL BROTHERS INC POSTED A 21 INCREASE IN NET INCOME FOR THE FISCAL THIRD QUARTER MAINLY ON A REBOUND FROM A CHARGE IN THE YEARAGO QUARTER FOR THE PERIOD ENDED MARCH 31 THE DANVILLE VA TOBACCO AND FLOWER COMPANY HAD NET OF 7 MILLION OR 52 CENTS A SHARE COMPARED WITH 58 MILLION OR 44 CENTS A SHARE SALES EASED 19 TO 2595 MILLION FROM 2644 MILLION LAST YEAR'S QUARTER INCLUDED A CHARGE OF 3 MILLION OR 22 CENTS A SHARE TAKEN AS A RESERVE AGAINST UNCOLLECTED ACCOUNTS FROM IRAQ DIBRELL SAID IT WOULD RECORD A ONETIME CHARGE OF 1 MILLION OR FIVE CENTS A SHARE FOR THE FIRST NINE MONTHS IN CONNECTION WITH A CANCELED MERGER WITH STANDARD COMMERCIAL CORP A TOBACCO COMPANY FOR THE NINE MONTHS NET ROSE TO 261 MILLION OR 196 A SHARE FROM 192 MILLION OR 145 A SHARE SALES INCREASED 28 TO 8054 MILLION THIS YEAR'S THIRDQUARTER FIGURES INCLUDE A 11 MILLION OR EIGHT CENTS A SHARE NET GAIN FROM CHANGES IN ACCOUNTING METHODS 9305140043 930514 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER BENTSEN CHAFES AS CLINTON CUTS TAX DEALS DIRECTLY WITH REP ROSTENKOWSKI THE TREASURY SECRETARY CLASHES WITH CHIEF WHITE HOUSE LOBBYIST HOWARD PASTER COMPLAINING THAT HE IS BEING CUT OUT OF TAXBILL TALKS A WHITE HOUSE OFFICIAL SAYS ANY PROBLEM THAT MIGHT HAVE EXISTED DOESN'T EXIST ANY LONGER BUT ROSTENKOWSKI SAYS I GET ANSWERS FROM THE PRESIDENT I CAN'T GET ANSWERS FROM THE TREASURY BENTSEN MAY WELL HAVE MORE SAY ABOUT SENATE STRATEGY HOUSE WAYS AND MEANS CHAIRMAN ROSTENKOWSKI REVELS IN THE WHITE HOUSE ATTENTION HE FANS HOUSE ANIMOSITY TOWARD THE SENATE TELLING DEMOCRATS HE IS REMINDING FORMER SEN BENTSEN THAT IT'S A TWOHOUSE LEGISLATURE BENTSEN INITIALLY RESISTED A UTILITYBACKED CHANGE TO THE ENERGY TAX LATER ACCEPTED BY THE PRESIDENT AT THE BEHEST OF OKLAHOMA REP BREWSTER AN EARLY CLINTON SUPPORTER ROSTENKOWSKI'S CONCESSIONS TO BUSINESS HAVE YET TO PRODUCE HOPEDFOR BUSINESS ENDORSEMENTS OF THE CLINTON PLAN CLINTON STRUGGLES TO GET HIS WHITE HOUSE TEAM ON TRACK CHIEF OF STAFF MCLARTY STARTS MEETING ALMOST DAILY WITH OFFICIALS TO MAP OUT STRATEGIES FOR PASSING THE DEFICITREDUCTION BILL HE AND STEPHANOPOULOS CONSULT WITH WASHINGTON INSIDERS LIKE JODY POWELL AND BOB BECKEL NEW YORK ATTORNEY HAROLD ICKES EMERGES AS A FREQUENT VOLUNTEER ADVISER HELPING TO REORGANIZE THE STAFF BUT CLASHES PERSIST TRADE REPRESENTATIVE KANTOR ADVISES AGAINST CAMPAIGNING FOR LOS ANGELES MAYORAL CANDIDATE MICHAEL WOO CLINTON POLITICAL ADVISERS URGE THE SUPPORT CHARGING THAT KANTOR IS A FRIEND OF WOO'S GOP OPPONENT RUMORS PERCOLATE THAT DEMOCRATIC PARTY CHAIRMAN WILHELM WILL BE MOVED IN TO BEEF UP THE WHITE HOUSE STAFF AND BE REPLACED BY A MORE TVSAVVY OPERATOR GAYS IN THE MILITARY THE OPTIONS TO ASPIN LEAVE LITTLE ROOM FOR COMPROMISE A RAND CORP STUDY WILL OFFER THE DEFENSE CHIEF THREE CHOICES BY THE END OF THE MONTH CONTINUE THE CURRENT DON'T ASK DON'T TELL POLICY ALLOW THE AFFIRMATION OF HOMOSEXUALITY BUT FORBID HOMOSEXUAL ACTIVITY IN A MILITARY ENVIRONMENT OR SIMPLY LIFT THE BAN ON HOMOSEXUALS A GROUP OF GENERALS WILL PRESENT TWO OPTIONS BUT LEANS TOWARD ALLOWING ONLY UNDECLARED GAY PERSONNEL ASPIN MUST PICK SOMETHING THE JOINT CHIEFS WILL SUPPORT WHEN THEY TESTIFY BEFORE CONGRESS NEXT MONTH THEY WANT TO CONTINUE THE CURRENT DON'T TELL POLICY BUT GAY ACTIVISTS DENOUNCE THE IDEA YET IF ASPIN PROPOSES EASING OR LIFTING THE BAN HE WILL BOLSTER SENTIMENT IN CONGRESS TO CODIFY THE STATUS QUO LOOKING TO GIVE ASPIN WIGGLE ROOM THE RAND GROUP PRIVATELY WILL TELL HIM THAT GAY MILITARY PERSONNEL WILL SETTLE FOR FAR LESS THAN GAY ACTIVISTS WILL CANDIDATE CUOMO THE NEW YORK GOVERNOR BEGINS TO SHORE UP HIS BASE TO RUN FOR A FOURTH TERM HE NAMES A STAFF MEMBER AS THE STATE PARTY CHAIRMAN AND ENERGIZES A KEY CONSTITUENCY BY BACKING A BLACK CANDIDATE FOR STATE COMPTROLLER THE GOP STARTS LINING UP POSSIBLE FOES RANGING FROM MODERATE RICHARD ROSENBAUM TO CONSERVATIVE LEWIS LEHRMAN SEND IN THE CAVALRY CLINTON POLITICAL STRATEGISTS JAMES CARVILLE AND PAUL BEGALA ARE ENLISTED TO TRY TO HELP DEMOCRAT ROBERT KRUEGER COME FROM BEHIND IN HIS TEXAS SENATE RACE AGAINST KAY BAILEY HUTCHISON BUT CLINTON DOESN'T PLAN TO CAMPAIGN FOR KRUEGER SUPPORT GROWS AMONG ENVIRONMENTAL GROUPS FOR THE NORTH AMERICAN FREE TRADE AGREEMENT BACKING BY SUCH GROUPS AS NATURAL RESOURCES DEFENSE COUNCIL GIVES A LITTLE MOMENTUM TO CHANCES IN CONGRESS SAYS CALIFORNIA REP MATSUI CLINTON OFFICIALS HOPE THE SIERRA CLUB WILL SIGN ON SOON BUT UNIONS CONTINUE TO BE OPPOSED CLINTON'S PLAN FOR CAMPAIGNFINANCE REFORM GETS A BOOST FROM A MAJOR PEROT GROUP CALIFORNIA'S UNITED WE STAND AMERICA URGES GOP SENATE LEADER DOLE TO AVOID A FILIBUSTER AGAINST REAL REFORM AND BACKS SEN BOREN'S BILL WHICH IS CLINTON'S PLAN INCLUDING SPENDING LIMITS PUBLIC FINANCING AND LIMITS ON SPECIALINTEREST GIFTS RUSSIAN MISSILE EXPERTS SUSPECT THAT UKRAINE ENGINEERS ARE CLOSE TO TAKING ELECTRONIC CONTROL OF 176 MISSILES NOW CONTROLLED BY MOSCOW THE CODEBLOCKING DEVICES WERE MADE IN UKRAINE AND THE RUSSIANS SAY THE UKRAINIANS MAY BE TRYING TO REMOVE THEM UKRAINIAN OFFICIALS ARE CURRENTLY DRAGGING THEIR FEET ON AN EARLIER PROMISE TO SEND THE WEAPONS BACK TO RUSSIA A SPOKESMAN FOR UKRAINE'S WASHINGTON EMBASSY SAYS CONTROL OF THE MISSILES IS THEORETICALLY POSSIBLE BUT HAS BEEN REJECTED AS POLITICALLY DANGEROUS UKRAINE WHICH SOUGHT 2 BILLION IN AID TO HELP REMOVE THE MISSILES WOULD LET INTERNATIONAL INSPECTION TEAMS CALCULATE THE COST BUT CLINTON AIDES CAN'T EVEN SAY WHERE THEY ARE GOING TO GET 18 BILLION IN AID PROMISED FOR RUSSIA MINOR MEMOS HILLARY RODHAM CLINTON RELAXES WITH A NINTENDO GAMEBOY PLAYING TETRIS A POPULAR VIDEO GAME DEVELOPED IN RUSSIA SPEAKING OF THE COMING HEALTHCARE OVERHAUL REP ROSTENKOWSKI DISCLOSES THAT HE ONCE TOLD MRS CLINTON I WISH YOU RAN FOR SHERIFF ONCE THE WORLD BANK SAYS REBUILDING ITS HEADQUARTERS WILL COST 250 MILLION 21 ABOVE A 1990 ESTIMATE DESPITE SUCH COSTCUTTING AS SUBSTITUTING TERRAZZO FLOORS FOR PURE MARBLE 9305140042 930514 BUSINESS BRIEF KINARK CORP DELAWARE COURT CLEARS PACT IN DISPUTE WITH NORTHBRIDGE KINARK CORP SAID THE DELAWARE CHANCERY COURT APPROVED ITS SETTLEMENT WITH NORTHBRIDGE HOLDINGS INC IN A CONTEST FOR CONTROL OF KINARK UNDER THE SETTLEMENT'S TERMS NORTHBRIDGE TERMINATED ITS CONSENT AND PROXY SOLICITATION AND KINARK BASED IN TULSA OKLA TERMINATED ITS REVOCATION OF CONSENT SOLICITATION THE CHEMICAL AND STEEL GALVANIZING COMPANY ALSO SAID ALL PENDING LITIGATION BETWEEN THE PARTIES IN DELAWARE CHANCERY COURT AND THE US DISTRICT COURT IN DELAWARE WILL BE DISMISSED IN ADDITION KINARK SAID THE SETTLEMENT APPROVAL CLEARS THE WAY FOR COMPLETION OF THE SALE OF 236000 KINARK COMMON SHARES BY ALTAIR CORP TO NORTHBRIDGE INCREASING NORTHBRIDGE'S STAKE TO ABOUT 22 AND A STANDSTILL AGREEMENT AND NONCOMPETITION AND CONFIDENTIALITY AGREEMENT BETWEEN ALTAIR AND ITS AFFILIATES AND NORTHBRIDGE NORTHBRIDGE IS A PRIVATELY HELD DELAWARE CORPORATION WITH INTERESTS IN THE CHEMICALS AND PLASTICS BUSINESSES ALTAIR IS AN AGRICULTURAL AND ELECTRONICS CONCERN THE SETTLEMENT APPROVAL CANCELS A 200000 SHARESTOCK OPTION AWARD GRANTED TO THE FORMER CHAIRMAN OF KINARK'S EXECUTIVE COMMITTEE GARRY BRAININ AND A PLANNED PRIVATE PLACEMENT OF 206612 KINARK COMMON SHARES TO ALTAIR MR BRAININ IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ALTAIR 9305140041 930514 BUSINESS BRIEF MONSANTO CO ACCORD IS SET ON ASSET SALE TIED TO PURCHASE OF ORTHO MONSANTO CO HAS AGREED TO SELL CERTAIN ASSETS IN ORDER TO GAIN GOVERNMENT APPROVAL OF THE COMPANY'S 416 MILLION ACQUISITION OF THE ORTHO PRODUCTS DIVISION OF CHEVRON CORP THE FEDERAL TRADE COMMISSION SAID MONSANTO BASED IN ST LOUIS WOULD SELL ORTHO'S KLEENUP BRAND LAWN HERBICIDE AMONG OTHER ORTHO ASSETS WITHIN 12 MONTHS OF ACQUIRING THE DIVISION OF CHEVRON WHICH IS BASED IN SAN FRANCISCO THE COMMISSION SAID IT HAD OBJECTED TO THE PURCHASE BECAUSE WITHOUT THE AGREEMENT IT ELIMINATES DIRECT COMPETITION BETWEEN THE TWO MAJOR COMPETING BRANDS IN THE RESIDENTIAL NONSELECTIVE HERBICIDE MARKET CITING INDUSTRY SOURCES THE FTC SAID MONSANTO IS THE LEADING COMPANY IN THE LAWNANDGARDEN PRODUCTS MARKET WITH A 63 SHARE ORTHO IS SECOND WITH 22 MONSANTO ALSO AGREED NOT TO ACQUIRE ANY INTEREST IN ANY COMPANY THAT MAKES HERBICIDES FOR RESIDENTIAL USE FOR 10 YEARS WITHOUT FTC APPROVAL 9305140040 930514 ELECTROGLAS PLANS TO SELL SHARES IN PUBLIC OFFER GENERAL SIGNAL SUBSIDIARY SETS PROGRAM IN MOTION DESPITE DROP IN RESULTS BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ELECTROGLAS INC A LEADING SUPPLIER OF SPECIALIZED SEMICONDUCTOR TESTING EQUIPMENT IS MOVING TOWARD AN INITIAL STOCK OFFERING ALTHOUGH IT HAS FAILED TO CONVERT ITS MARKET POSITION INTO GROWING SALES AND PROFIT THE COMPANY A UNIT OF GENERAL SIGNAL CORP HAD 1992 EARNINGS OF 44 MILLION DOWN 36 FROM THE YEAR BEFORE SALES DECLINED 8 TO 55 MILLION FROM 598 MILLION SINCE 1988 ELECTROGLAS HAS SEEN PROFITS PLUMMET 57 WHILE SALES HAVE FALLEN 17 A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION INDICATES ELECTROGLAS SANTA CLARA CALIF MAKES AUTOMATIC WAFER PROBING EQUIPMENT USED TO TEST INDIVIDUAL SEMICONDUCTOR DEVICES THE FILING SAYS ELECTROGLAS HAS SOLD MORE THAN 5000 OF THESE SYSTEMS AND BELIEVES IT SUPPLIES MORE THAN HALF THE PROBERS USED IN THE US AND EUROPE THE COMPANY SAYS IT IS THE LARGEST SUPPLIER OF THE EQUIPMENT IN THE NONJAPANESE MARKET AND THE SECOND LARGEST SUPPLIER WORLDWIDE ELECTROGLAS BLAMES ITS RECENT RESULTS ON THE DOWNTURN IN THE SEMICONDUCTOR INDUSTRY SEMICONDUCTOR MANUFACTURERS HAVE CUT BACK ON CAPITAL EQUIPMENT EXPENDITURES BECAUSE OF THE RECENT RECESSION IT SAYS MOREOVER IT WARNS THAT THERE IS NO ASSURANCE THAT RESULTS WON'T BE ADVERSELY AFFECTED IF THE INDUSTRY CONDITIONS PERSIST OR FURTHER DOWNTURNS OCCUR AN ADDITIONAL WARNING THE NEED FOR CONTINUED INVESTMENT IN ENGINEERING RESEARCH AND DEVELOPMENT AND MARKETING REQUIRED TO PENETRATE FOREIGN MARKETS AND SUPPORT SALES THERE CAN LIMIT THE COMPANY'S ABILITY TO REDUCE EXPENSES DURING SUCH DOWNTURNS ELECTROGLAS ALSO SAYS IT IS FACING INCREASED COMPETITION FROM ESTABLISHED COMPETITORS WITH GREATER FINANCIAL RESOURCES AND LARGER SERVICE CAPABILITIES AMONG THE COMPETITORS ARE TWO JAPANESE COMPANIES TOKYO ELECTRON LTD THE LARGEST WAFER PROBE SUPPLIER AND TOKYO SEIMITSU CO BOTH COMPANIES HAVE EXTENDED THEIR INFLUENCE OUTSIDE JAPAN BY LICENSING PRODUCTS AND PROCESS TECHNOLOGIES TO NONJAPANESE SEMICONDUCTOR MANUFACTURERS MOREOVER THE SLOWDOWN OF THE SEMICONDUCTOR BUSINESS IN JAPAN HAS LEFT THESE COMPANIES WITH EXCESS INVENTORY AND CAPACITY PRICING PRESSURE IN BOTH THE JAPANESE MARKET SEGMENT AND ELSEWHERE MAY BE INCREASED AS A RESULT OF JAPANESE COMPANIES OFFERING SUBSTANTIAL DISCOUNTS ON THEIR PRODUCTS THE SEC FILING WARNS ELECTROGLAS'S CUSTOMERS INCLUDE SOME OF THE WORLD'S LEADING SEMICONDUCTOR MANUFACTURERS AMONG THEM INTEL CORP AND INTERNATIONAL BUSINESS MACHINES CORP IN FACT SALES TO IBM AND INTEL REPRESENTED NEARLY 27 OF ITS SALES LAST YEAR PROBLEMS AT THOSE COMPANIES COULD ALSO ERODE SALES ELECTROGLAS ACKNOWLEDGES IN ITS SEC FILING ELECTROGLAS PROPOSES TO SELL 62 MILLION COMMON SHARES IN AN INITIAL PUBLIC OFFERING INCLUDING 4960000 IN THE US AND 1240000 INTERNATIONALLY THE FILING ESTIMATES THE PRICE AT 13 TO 15 A SHARE WHICH WOULD GIVE THE COMPANY'S 68 MILLION SHARES A MARKET VALUE BETWEEN 88 MILLION AND 102 MILLION UNDERWRITERS INCLUDE LEHMAN BROTHERS BEAR STEARNS & CO AND NEEDHAM & CO AT 14 A SHARE GENERAL SIGNAL BASED IN STAMFORD CONN WOULD RECEIVE 868 MILLION FROM THE OFFERING IT WILL PAY THE NEW COMPANY 251 MILLION OR 370 A SHARE FOR ITS SHARES ABOUT EQUAL TO THE TANGIBLE BOOK VALUE OF ELECTROGLAS THE FILING SAID AFTER THE OFFERING GENERAL SIGNAL WHICH IS SELLING ALL OF THE SHARES WOULD HOLD ABOUT 88 OF ELECTROGLAS THE PLANNED SALE OF THE ELECTROGLAS STOCK BY GENERAL SIGNAL A MAKER OF EQUIPMENT AND INSTRUMENTS FOR THE PROCESSCONTROL ELECTRICAL AND INDUSTRIALTECHNOLOGY INDUSTRIES IS PART OF ITS PLAN TO LEAVE THE SEMICONDUCTOR EQUIPMENT BUSINESS 9305140039 930514 MARKETING & MEDIA PARTNERSHIP TO REMAKE '50S TROUBLEDTEEN MOVIES HOLLYWOOD THOSE OLD 1950S TROUBLEDTEENAGER MOVIES DRIVEIN HITS SUCH AS ROCK ALL NIGHT DRAGSTRIP GIRL AND MOTORCYCLE GANG ARE COMING BACK 1990S STYLE DRIVEIN CLASSICS THEATER A NEW PARTNERSHIP SAID IT PLANS TO REMAKE 10 SUCH CLASSICS WHICH WERE ORIGINALLY PRODUCED IN THE 1950S BY AMERICANINTERNATIONAL PICTURES BUT THE MOVIES ORIGINALLY PRESENTED WITH GRATED LANGUAGE AND FEW SEXUAL REFERENCES WILL AS REMAKES BE EDGIER SEXIER AND MORE DANGEROUS THE PARTNERSHIP SAID DIRECTORS SUCH AS QUENTIN TARANTINO WES CRAVEN AND RALPH BAKSHI HAVE BEEN HIRED PRODUCTION IS SLATED TO BEGIN IN SEPTEMBER AS PART OF THE DEAL THE 10 FILMS WILL BE SHOWN IN THE US ON VIACOM INC'S SHOWTIME PAYTV NETWORK SPELLING ENTERTAINMENT GROUP WILL HAVE THE INTERNATIONAL THEATRICAL RIGHTS AND CBS/FOX VIDEO A UNIT OF NEWS CORP WILL HAVE HOMEVIDEO RIGHTS 9305140038 930514 BUSINESS BRIEF BARR LABORATORIES INC FIRM REVERSES LOSS POSTS PROFIT FOR FISCAL 3RD QUARTER BARR LABORATORIES INC REPORTED A PROFIT IN ITS FISCAL THIRD QUARTER COMPARED WITH A YEAREARLIER LOSS MAINLY DUE TO A 105 MILLION PAYMENT FOR THE PARTIAL SETTLEMENT OF A LAWSUIT THE MAKER OF GENERIC PHARMACEUTICALS IN POMONA NY SAID NET INCOME FOR THE QUARTER ENDED MARCH 31 WAS 23 MILLION OR 27 CENTS A SHARE COMPARED WITH A LOSS OF 24 MILLION OR 28 CENTS A SHARE THE PARTIAL PAYMENT WAS PART OF AN OUTOFCOURT SETTLEMENT OF THE DISPUTE INVOLVING IMPERIAL CHEMICAL INDUSTRIES PLC'S PATENT ON A BREAST CANCER DRUG TAMOXIFEN CITRATE BARR SAID IT WILL RECEIVE THE REMAINING 105 MILLION PAYMENT IN ITS FOURTH QUARTER SALES TUMBLED 45 TO 119 MILLION FROM 218 MILLION THE LOWER SALES REFLECT A DECISION BY A FEDERAL JUDGE IN FEBRUARY TO TEMPORARILY SUSPEND 24 PRODUCTS REPRESENTING ABOUT 40 OF BARR'S SALES THE JUDGE GAVE THE COMPANY ONE YEAR TO COMPLETE SOCALLED VALIDATION STUDIES TO ENSURE THAT IT IS FOLLOWING CONSISTENT DRUGMANUFACTURING PRACTICES 9305140037 930514 BUSINESS BRIEF CAVALIER HOMES INC CONCERN WITHDRAWS PROPOSAL FOR 11 MILLION SHARE OFFER CAVALIER HOMES INC SAID IT WILL WITHDRAW ITS REGISTRATION STATEMENT FOR A PROPOSED PUBLIC OFFERING OF 11 MILLION COMMON SHARES BECAUSE IT DIDN'T RECEIVE AN OFFER FOR THE STOCK FROM UNDERWRITERS IN RECENT NEGOTIATIONS LAST MONTH THE WICHITA FALLS TEXAS PRODUCER OF MANUFACTURED HOUSING SAID IT TERMINATED PRINCIPAL/EPPLER GUERIN & TURNER AS THE UNDERWRITER OF THE PROPOSED OFFERING BECAUSE THE DALLAS INVESTMENT FIRM DIDN'T MAKE AN ACCEPTABLE OFFER CAVALIER CHAIRMAN BARRY DONNELL SAID THE COMPANY WOULD HAVE CONSIDERED ACCEPTABLE AN OFFERING PRICE CONSISTENT WITH CLOSING PRICES AT THE TIME OF THE OFFERING HE SAID SUBSEQUENT MEETINGS WITH OTHER UNDERWRITERS DIDN'T LEAD TO ANY OFFERS IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY CAVALIER SHARES ROSE 375 CENTS TO 15 CAVALIER HAD PLANNED TO USE THE PROCEEDS FROM THE OFFERING TO EXPAND ITS CAVALIER ACCEPTANCE CORP UNIT 9305140036 930514 BUSINESS BRIEF BABBAGE'S INC SOFTWARE RETAILER'S PROFIT DOUBLED FOR FISCAL PERIOD BABBAGE'S INC BOLSTERED BY HIGHER DEMAND FOR SOFTWARE SAID ITS FISCAL FIRSTQUARTER NET INCOME DOUBLED FROM A YEAR EARLIER EXCEEDING ANALYSTS' ESTIMATES THE DALLASBASED SOFTWARE RETAILER SAID ITS NET INCOME FOR THE QUARTER ENDED MAY 1 ROSE TO 538000 OR 10 CENTS A SHARE FROM 259000 OR FIVE CENTS A SHARE A YEAR AGO SALES GREW 24 TO 463 MILLION FROM 372 MILLION A YEAR AGO THE COMPANY ATTRIBUTED THE IMPROVED RESULTS TO AN INCREASE IN THE NUMBER OF OUTLETS IT OPERATES TO 259 STORES FROM 212 A YEAR AGO AND RAPID GROWTH IN SALES OF VIDEOGAME SOFTWARE M LYNN DETRICK AN ANALYST AT WILLIAMS MACKAY JORDAN & CO IN HOUSTON SAID SHE ESTIMATED BABBAGE'S WOULD EARN ABOUT SIX CENTS IN THE QUARTER SHE SAID PERSONALCOMPUTER PURCHASES ENCOURAGED BY THE PRICE WAR IN THE COMPUTER INDUSTRY FUELED SALES OF VIDEOGAME AND IBMCOMPATIBLE SOFTWARE AT BABBAGE'S IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY BABBAGE'S STOCK CLOSED AT 27625 UP 1875 9305140035 930514 BUSINESS BRIEF ATEK METALS CENTER INC BOARD AGREES IN PRINCIPLE TO ACCEPT PURCHASE OFFER ATEK METALS CENTER INC SAID ITS BOARD AGREED IN PRINCIPLE TO ACCEPT AN 188 MILLION ACQUISITION OFFER FROM ROLLED ALLOYS INC THE TEMPERANCE MICH DISTRIBUTOR OF HEAT AND CORROSIONRESISTANT ALLOYS WILL PAY 451 A SHARE FOR ATEK'S 37 MILLION COMMON SHARES OUTSTANDING THE PRIVATELY HELD COMPANY ALSO WILL PAY 2 MILLION FOR ATEK'S 2000 SHARES OF CONVERTIBLE PREFERRED STOCK THE ACQUISITION IS CONTINGENT UPON EXECUTION OF A MERGER AGREEMENT AND APPROVAL BY ATEK'S SHAREHOLDERS AMONG OTHER CONDITIONS ATEK A CINCINNATIBASED SUPPLIER OF MATERIALS TO THE AEROSPACE AND CHEMICALPROCESSING INDUSTRIES EXPECTS THE TRANSACTION WILL CLOSE IN LATE AUGUST 9305140034 930514 UNCLEAR FOR TAKEOFF BIG US AIRLINES FLY INTO FOREIGN BARRIERS OVER EXPANSION PLANS TRYING TO CUT COMPETITION SOME NATIONS SEEK CURBS ON GLOBAL AVIATION PACTS A BATTLE IS BREWING IN OSAKA BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE FRENCH IT IS GALLING US AIRLINES WHICH CONTROL 70 OF THE USFRANCE TRAFFIC STILL ARE CLAMORING FOR GREATER ACCESS TO PARIS AT WHAT LEVEL ARE WE ALLOWED TO SAY WE'RE CONCERNED ABOUT THIS INVASION WONDERS BERNARD ATTALI CHAIRMAN OF BELEAGUERED AIR FRANCE THE DAY AFTER WE ARE DEAD RATHER THAN LET EIGHT FIERCELY COMPETITIVE US CARRIERS OVERWHELM HIS AIRLINE MR ATTALI GOT THE FRENCH GOVERNMENT TO REPUDIATE ITS AVIATION TREATY WITH THE US AND DEMAND A MORE RESTRICTIVE ONE FOR US CARRIERS THAT MEANS FRANCE CAN DRASTICALLY CLIP THEIR WINGS BEGINNING THIS FALL MOREOVER THE FRENCH MOVE IS PART OF A CONTAGION OF PROTECTIONIST STEPS DESIGNED TO CURB THE GLOBAL GROWTH OF US CARRIERS GERMANY IS THREATENING TO FOLLOW FRANCE'S LEAD AND RENOUNCE ITS BILATERAL AGREEMENT WITH WASHINGTON AUSTRALIA IS TRYING TO CURTAIL CERTAIN US FLIGHTS A NASTY SKIRMISH WITH JAPAN MAY SOON BURST INTO A FULLBLOWN TRADE WAR OVER THE DESIGNS OF UAL CORP'S UNITED AIRLINES AND NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC ON LUCRATIVE PACIFIC RIM MARKETS AVIATION TIES WITH SEVERAL OTHER NATIONS INCLUDING SPAIN THAILAND AND ARGENTINA ARE GETTING DECIDEDLY STICKY MEANTIME TALKS WITH CANADA OVER A SOCALLED OPENSKIES PACT ARE GOING NOWHERE IF THE TREND CONTINUES UNCHECKED IT WILL CRIMP THE PROSPECTS OF ONE AMERICAN INDUSTRY THAT IS POSITIONED TO TAKE ON THE WORLD BUT FOREIGN CARRIERS ARE TERRIFIED OF FLYING UP AGAINST THEIR DEREGULATIONHARDENED US RIVALS ESPECIALLY AMR CORP'S AMERICAN AIRLINES UNITED AIRLINES AND DELTA AIR LINES AND ALTHOUGH THE CLINTON ADMINISTRATION CAME IN PROMISING TO OPEN OVERSEAS ROUTES IT IS FIGHTING A REARGUARD BATTLE JUST TO HANG ONTO THE AVIATION RIGHTS THAT THE US ALREADY HAS ALL THESE OUTBREAKS OF WHAT BRITISH AIRWAYS CHAIRMAN SIR COLIN MARSHALL CALLS AEROPOLITICAL HOSTILITY ARE THWARTING OR AT LEAST FORESTALLING EFFORTS TO EXPORT USSTYLE DEREGULATION AND LIBERALIZE AIRSERVICE AGREEMENTS WHAT IS MORE THE OBSTACLES ARE SLOWING THE TREND TOWARD GLOBALIZATION INCLUDING CROSSBORDER AIRLINE MERGERS AND MARKETING PARTNERSHIPS FOR TRAVELERS THE BARRIERS SPELL HIGHER PRICES AND FEWER CHOICES IT'S WORRISOME SAYS US TRADE REPRESENTATIVE MICKEY KANTOR THE PROTECTIONIST BACKLASH AMONG FOREIGN AIRLINES IS A RESPONSE TO THE RECESSION AND A FEAR THAT IF THEY DON'T THROW UP BARRIERS IT'LL GET WORSE HE SAYS FOR THEIR PART THE FOREIGN CARRIERS HAVE REASON TO BE NERVOUS US AIRLINES WHILE HARDLY FLYING HIGH ARE EMERGING MORE COMPETITIVE THAN EVER FROM THE TURBULENCE OF PRICE WARS LAYOFFS FLEET CUTBACKS AND BANKRUPTCIES AND WHILE THEY ARE ALSO BEGINNING TO CATCH THE UPDRAFT OF THE US ECONOMIC RECOVERY THEY HAVE SURPLUS CAPACITY AND ARE LOOKING OVERSEAS TO FILL SEATS MANY EUROPEAN AND ASIAN FLAG CARRIERS ARE STILL TOPHEAVY INEFFICIENT AND HURTING FROM THE GLOBAL RECESSION TYPICALLY THEIR OPERATING COSTS ARE 30 TO 50 HIGHER THAN THOSE OF THEIR AMERICAN RIVALS ACCORDING TO A NEW STUDY BY MASSACHUSETTSBASED MERCER MANAGEMENT CONSULTING INC A LOT OF OUR PARTNERS AREN'T READY FOR THE KIND OF LIBERALIZATION WE'RE ADVOCATING SAYS SCOTT YOHE A DELTA VICE PRESIDENT LUFTHANSA GERMAN AIRLINES JAPAN AIRLINES AND ALL NIPPON AIRWAYS ALONG WITH AIR FRANCE ARE PRESSING THEIR GOVERNMENTS TO NEGOTIATE MORERESTRICTIVE AGREEMENTS THEY HOPE TO GAIN BREATHING ROOM SO THAT THEY CAN REORGANIZE THEMSELVES FOR THE FIGHT OVER MARKET SHARE MERCER MANAGEMENT'S KENNETH QUINN AN AVIATION ANALYST IN WASHINGTON SAYS HE UNDERSTANDS WHY THE OVERSEAS AIRLINES ARE APPREHENSIVE OF TAKING ON US CARRIERS IF YOU'RE UP AGAINST A CARRIER WITH A HUGE DOMESTIC FEED A GOOD GLOBAL NETWORK A FREQUENTFLIER PROGRAM SOPHISTICATED YIELDMANAGEMENT TECHNIQUES AND LOTS OF MARKETING PROWESS YOU AREN'T GOING TO BE TOO SANGUINE ABOUT YOUR PROSPECTS BUT THE WHITE HOUSE HAVING EMBRACED A MORE AGGRESSIVE APPROACH TO TRADE ISN'T INCLINED TO TELL US AIRLINES TO MARK TIME WHILE FOREIGN RIVALS RESTRUCTURE OUR AIRLINES ARE THE QUINTESSENTIAL AMERICAN SUCCESS STORY SAYS TRANSPORTATION SECRETARY FEDERICO PENA WE MUST DO EVERYTHING WE CAN TO SUPPORT THEIR COMPETITIVENESS IN THE GLOBAL MARKETPLACE AMID ALL THE MOVES TO SHRINK US ACCESS TWO TRADING PARTNERS ARE AT LEAST MOVING IN THE OTHER DIRECTION THE NETHERLANDS LAST YEAR ENTERED INTO AN OPENSKIES ACCORD WITH THE US THAT DEREGULATED AIR TRAVEL BETWEEN THE COUNTRIES AND BRITAIN HAS AGREED TO RENEGOTIATE A HIGHLY RESTRICTIVE BILATERAL AGREEMENT WITH WASHINGTON IN RETURN FOR US APPROVAL OF A 300 MILLION BRITISH AIRWAYS INVESTMENT IN USAIR GROUP INC AND A RESERVATIONCODESHARING PACT BETWEEN THE TRANSATLANTIC PARTNERS BUT TO THE GERMANS FRENCH AND JAPANESE THE IDEAL AGREEMENT IS THE VERY ONE THAT THE CLINTON TEAM IS TRYING TO GET THE BRITISH TO LIBERALIZE THEY PARTICULARLY COVET PROVISIONS IN THE 1977 AGREEMENT THAT STRICTLY LIMIT HOW MANY US CARRIERS CAN FLY WHERE WHEN AND HOW OFTEN ON MOST TRANSATLANTIC ROUTES FOR EXAMPLE ONLY ONE AIRLINE FROM EACH COUNTRY CAN COMPETE FOR TRAFFIC ONLY TWO US CARRIERS AMERICAN AND UNITED HAVE LANDING RIGHTS AT LONDON'S HEATHROW AIRPORT ONE OF THE GREAT HUBS OF INTERNATIONAL AVIATION THIS FORCES OTHER US CARRIERS TO USE LESSDESIRABLE GATWICK AIRPORT IN LONDON LAST WEEK US AND BRITISH NEGOTIATORS OPENED TALKS WITH A ONEYEAR DEADLINE FOR COMING TO NEW TERMS WHATEVER THE OUTCOME THE RENEGOTIATED USUK PACT WILL BECOME THE BENCHMARK FOR FUTURE BILATERAL TALKS WITH OTHER NATIONS A MORE LIBERAL AGREEMENT WOULD BENEFIT BUSINESS TRAVELERS AND TOURISTS LIBERALIZING A RESTRICTIVE PACT ON AVERAGE YIELDS A 46 JUMP IN TRAVEL BETWEEN THE US AND THE OTHER COUNTRY ACCORDING TO A UNIVERSITY OF MARYLAND STUDY FOR THE AIRLINES FOREIGN FLIGHTS HAVE BECOME INCREASINGLY IMPORTANT US CARRIERS HAVE SEEN INTERNATIONAL FLIGHTS GROW TO 25 OF THEIR REVENUE MIX FROM 20 IN 1980 TO GROW FURTHER AND PROSPER THEY NEED GREATER ACCESS TO FOREIGN GATEWAYS PARTICULARLY IN ASIA AND EUROPE GROWTH IN AIR TRAVEL IN BOTH PLACES IS PROJECTED TO OUTPACE THE US RATE THE ADMINISTRATION IS TRYING TO COUNTER THE RISE OF PROTECTIONISM WITH MOREMUSCULAR TRADE TACTICS WHILE A NEWLY NAMED AIRLINE COMMISSION SEEKS REMEDIES FOR AN INDUSTRY THAT HAS LOST MORE THAN 10 BILLION SINCE 1989 BECAUSE OF RAMPANT PRICECUTTING AND THE RECESSION SECRETARY PENA ALREADY HAS REBUKED THE FRENCH FOR CANCELING THE TREATY WITH THE US AT A VERY BAD TIME HE HAS THREATENED THE JAPANESE AND AUSTRALIANS WITH SANCTIONS IN DISPUTES OVER US AIRLINES' RIGHTS TO SERVE THE JAPANAUSTRALIA MARKET AND AT THE EUROPEAN COMMUNITY MR PENA HAS PRESSED COMPLAINTS AGAINST FRANCE AND SPAIN TO PROTECT AMERICAN AIRLINES' COMPUTERRESERVATIONS SYSTEM FROM ALLEGEDLY ANTICOMPETITIVE PRACTICES FOR ITS PART CONGRESS IS CERTAIN TO PRESS THE ADMINISTRATION TO FIGHT OFF ANY NEW RESTRAINTS ON US CARRIERS IN LIGHT OF THE DIFFICULTIES FACING THE INDUSTRY WE CANNOT AFFORD TO ALLOW FOREIGN PROTECTIONISM TO COST US JOBS ASSERT HOUSE MAJORITY LEADER RICHARD GEPHARDT AND OTHER LAWMAKERS IN A RECENT LETTER TO MR PENA THE CLINTON CAMP LIKE THE BUSH ADMINISTRATION IS INSISTING ON FREER MARKETS OVERSEAS AS THE PRICE FOR OPENING UP THE HUGE US MARKET US LEVERAGE UNFORTUNATELY ISN'T WHAT IT WAS A YEAR AGO THE GLOBAL RECESSION HAS WEAKENED AIRLINES EVERYWHERE SAPPING THEIR DESIRE FOR MORE US LANDING RIGHTS INDEED SOME JAPANESE AND GERMAN CARRIERS ARE CUTTING BACK THEIR US OPERATIONS IN THE USUK TALKS ON A NEW AGREEMENT BOTH SIDES PROFESS KEEN INTEREST IN MAKING HEADWAY THE BRITISH WANT MORE OPPORTUNITIES IN THE US INCLUDING THE STATUTORY RIGHT TO BUY MORE THAN A 25 VOTING STAKE IN A US AIRLINE CURRENTLY BRITISH AIRWAYS OWNS 199 OF USAIR VOTING STOCK BUT WOULD LIKE TO INCREASE ITS STAKE TO 44 THE US COVETS GREATER ACCESS TO UK AIRPORTS ESPECIALLY LONDON'S HEATHROW IT ALSO SEPARATELY WANTS GREATER FREEDOM TO FLY TO OTHER EUROPEAN DESTINATIONS THE MOST VOCIFEROUS ADVOCATES OF LIBERALIZATION HAVE BEEN THE BIG THREE CARRIERS AMERICAN UNITED AND DELTA BUT COMPETITORS CAUTION AGAINST DEMANDING TOO MUCH OF THE BRITISH AND OTHER PARTNERS INSISTING ON AN INSTANT GRANT OF OPEN SKIES' WILL ONLY LEAD TO DEADLOCK SAYS USAIR CHAIRMAN SETH SCHOFIELD DEADLOCK LEAVES US WITH THE STATUS QUO THE ONLY BENEFICIARIES OF DEADLOCK ARE THE VERY SAME AIRLINES CRYING MOST LOUDLY FOR IMMEDIATE OPEN SKIES THE INCUMBENT CARRIERS WHO HAVE THE LION'S SHARE OF PROTECTED INTERNATIONAL ROUTES HE SAYS COMMERCIAL AVIATION HAS OPERATED SINCE 1944 ON THE PREMISE THAT ALL INTERNATIONAL MARKETS ARE CLOSED UNTIL THE GOVERNMENTS INVOLVED AGREE TO OPEN THEM THE RESULT A WEB OF MORE THAN 1200 BILATERAL AGREEMENTS INCLUDING 72 USNEGOTIATED PACTS WHEREVER POSSIBLE THE US HAS SOUGHT TO MINIMIZE REGULATION OF ROUTES SCHEDULES FARES AIRCRAFT TYPE AND THE LIKE AND THE POLICY HAS PAID OFF FOR US CARRIERS THEIR INTERNATIONAL PASSENGER TRAFFIC IS UP 100 SINCE 1980 INTERNATIONAL CARGO FREIGHT IS UP 158 AND INTERNATIONAL REVENUE IS UP 184 MANY FOREIGN AIRLINES CONCEDE THE INEVITABILITY OF GREATER COMPETITION AROUND THE WORLD GOVERNMENTS ARE PRIVATIZING THEIR STATEOWNED AIRLINES MANY CARRIERS ARE CONSOLIDATING OR FORMING ALLIANCES TO COMPETE WITH US CARRIERS AND THE LIKES OF BRITISH AIRWAYS WHICH WENT THROUGH PRIVATIZATION AND RESTRUCTURING IN THE 1980S WITH THE ESTABLISHMENT OF A SINGLE AIRTRAVEL MARKET ON JAN 1 THE EUROPEAN COMMUNITY BEGAN A SERIES OF DEREGULATORY STEPS THAT WILL LEAD TO AN INDUSTRYWIDE SHAKEOUT KLM ROYAL DUTCH AIRLINES SWISSAIR SCANDINAVIAN AIRLINES SYSTEM AND AUSTRIAN AIRLINES ALREADY ARE CONTEMPLATING A MULTINATIONAL MERGER THEY WANT TIME TO GET THEIR FINANCIAL HOUSES IN ORDER AND DETERMINE WHAT KIND OF AIRLINES THEY'RE GOING TO BE SAYS DELTA'S MR YOHE INDEED GIVEN THE UPHEAVAL IN COMMERCIAL AVIATION THE CLINTON CAMP'S PUSH FOR GREATER ACCESS WAS BOUND TO RUN INTO STRENUOUS RESISTANCE IN MANY CORNERS OF THE WORLD IN EUROPE CARRIERS ARE CONCERNED ABOUT THE DIVERSION OF EXCESS US CAPACITY THERE'S THIS AMERICAN CAPACITY EXPLOSION SAYS JANNE JULSRUD A NORWEGIAN EMBASSY OFFICIAL IN WASHINGTON EUROPEAN CARRIERS FEEL SOMEWHAT OVERRUN MANY EXPERTS SEE THE USGERMAN RELATIONSHIP AS THE LIKELIEST TO ERUPT LUFTHANSA CHAIRMAN JUERGEN WEBER IS URGING BONN TO RENOUNCE ITS AGREEMENT WITH THE US HE IS ALSO DEMANDING CAPACITY RESTRAINTS ON DELTA AND OTHER US CARRIERS TRADE UNIONS REPRESENTING LUFTHANSA EMPLOYEES HAVE PICKETED OVER THE ISSUE IT TOOK A PERSONAL APPEAL FROM MR PENA TO HIS GERMAN COUNTERPART TO AVERT A CRISIS OVER SUMMER SCHEDULES AT TALKS IN WASHINGTON SET FOR JUNE 24 US NEGOTIATORS WILL TRY TO PRESERVE WHAT IS ONE OF THE MOST LIBERAL PACTS THE US HAS WHILE THE GERMANS PRESS FOR A VERSION OF THE MORE RESTRICTIVE USUK PACT SAYS A NEW YORKBASED SPOKESMAN FOR 52 GOVERNMENTOWNED LUFTHANSA WE ARE LOOKING FOR MORE REALISTIC BILATERAL EQUAL TO WHAT OTHER COUNTRIES ARE GETTING MANAGED COMPETITION HAS BECOME THE MODEL FOR THE GERMANS FRENCH AND OTHERS BETWEEN BUREAUCRACY AND THE JUNGLE THERE MUST BE A COMPROMISE SAYS AIR FRANCE'S MR ATTALI MEANWHILE ARGENTINA AND THE US ARE AT ODDS OVER AIRCARGO HANDLING THAILAND RENOUNCED ITS BILATERAL PACT WITH THE US IN NOVEMBER 1990 AND NOW IS FREEZING US AIRLINESEATING CAPACITY TO PROTECT ITS NATIONALFLAG CARRIER DESPITE 12 ROUNDS OF TALKS THE US AND CANADA ARE STYMIED IN AN EFFORT TO DEREGULATE AIR SERVICE BETWEEN THE TWO COUNTRIES IN THE PACIFIC THE ADMINISTRATION FACES BIG BILATERAL TROUBLE A MAJOR SORE POINT INVOLVES NORTHWEST AIRLINES' PASSENGER PICKUPS IN JAPAN BOTH AUSTRALIA AND JAPAN CONTEND THAT NORTHWEST IS POACHING THEIR AIRLINES' TRAFFIC BY PICKING UP SYDNEYBOUND PASSENGERS IN OSAKA IN VIOLATION OF BILATERAL ACCORDS WITH THE US ON MOST FLIGHTS THEY COMPLAIN AT LEAST 70 OF THE PASSENGERS ARE OSAKA PICKUPS THE REMAINDER ARE FROM NEW YORK BOTH CONTEND THAT SECONDARY OR PICKUP TRAFFIC SHOULDN'T EXCEED 50 A LIMIT THE US DOESN'T RECOGNIZE AUSTRALIA VOWS TO REVOKE NORTHWEST'S RIGHT TO OPERATE THREE NEW YORKOSAKASYDNEY FLIGHTS A WEEK EFFECTIVE MAY 30 THE US WARNS IT WILL RETALIATE BY REVOKING THREE QANTAS AIRWAYS FLIGHTS A WEEK BETWEEN SYDNEY AND LOS ANGELES ANOTHER SORE POINT INVOLVES JAPAN'S REJECTION OF UNITED'S APPLICATIONS TO FLY TWO ROUTES TOKYOSYDNEY AND TOKYOKUALA LUMPUR DESPITE THE US THREATS OF RETALIATION THE JAPANESE AREN'T BUDGING AND JAPAN AIRLINES CHAIRMAN SUSUMU YAMAJI IS CALLING FOR RENUNCIATION OF A 1952 AGREEMENT IN FAVOR OF A MORE RESTRICTIVE PACT BOTH FLAPS ARE BUT PRELIMINARIES TO THE MAIN EVENT THE STRUGGLE OVER OSAKA'S NEW KANSAI AIRPORT THE NEXT HEATHROW OF INTERNATIONAL AVIATION THE JAPANESE ALREADY HAVE SIGNALED THAT THEY AREN'T ABOUT TO ACCEDE TO THE AMBITIONS OF UNITED AND NORTHWEST TO TURN KANSAI DUE TO OPEN IN MID1994 INTO A HUB FOR SERVING ASIA THE WORLD'S FASTESTGROWING MARKET COMPLICATING THINGS EVEN FURTHER FOR THE ADMINISTRATION IS THE LACK OF UNANIMITY AMONG US CARRIERS OVER OBJECTIVES AND TACTICS AMERICAN AIRLINES COULDN'T CARE LESS ABOUT BEYONDJAPAN RIGHTS IT WANTS ADMINISTRATION HELP JUST GETTING MORE ROUTES INTO JAPAN UNITED THE DOMINANT TRANSPACIFIC CARRIER APPEARS INTENT ON PUSHING THE JAPANESE TO THE WALL TO GAIN EXPANDED RIGHTS NORTHWEST ADVOCATES A LESS CONFRONTATIONAL APPROACH AND BLAMES UNITED FOR INFLAMING THE SITUATION THE JAPANESE CLAIM UNITED WOULD HAVE GOT BOTH NEW ROUTES IT REQUESTED IF IT HADN'T FILED ITS APPLICATIONS WITH THE WRONG MINISTRY I AM VERY FRUSTRATED WITH THE ATTITUDE OF UNITED SAYS RYUHEI MAEDA TRANSPORTATION ATTACHE IN THE JAPANESE EMBASSY IN WASHINGTON I REALLY CAN'T SEE WHY UNITED MAKES THE MATTER WORSE AND WORSE WHATEVER THE CASE US NEGOTIATORS ARE BEING ADMONISHED AGAINST PRESSING OTHER COUNTRIES TOO HARD FOR LIBERALIZATION THEY ARE UNPREPARED TO TAKE ON WARNS MR QUINN THE CONSULTANT IF YOU CONTINUE TO SHOOT FOR THE MOON YOU CAN SHOOT YOURSELF IN THE FOOT 9305140033 930514 INTERNATIONAL NISSAN TO BUY AUTO PARTS FROM A TOYOTA AFFILIATE TOKYO AP NISSAN MOTOR CO SAID IT WILL BUY PARTS MADE BY AN AFFILIATE OF ARCHRIVAL TOYOTA MOTOR CORP UNDER THE PACT NISSAN JAPAN'S SECONDLARGEST AUTO MAKER WILL BUY ABOUT 9 MILLION OF VACUUM PUMPS A YEAR FROM AISAN INDUSTRY CO A MAJOR TOYOTA PARTS SUPPLIER BASED IN CENTRAL JAPAN BEGINNING IN 1995 THE ENGINE PARTS WILL BE USED IN AS MUCH AS 40 OF NISSAN'S DIESEL PASSENGER AND COMMERCIAL CARS TOYOTA OWNS 32 OF AISAN INDUSTRY THE AGREEMENT BREAKS JAPAN'S TRADITIONAL KEIRETSU SYSTEM OF A STRICT EXCLUSIVE LOYALTY BETWEEN MAJOR MANUFACTURERS AND THEIR SUPPLIERS AND IS SEEN AS A MOVE THAT MAY ENCOURAGE A RESTRUC TURING OF THE NATION'S AUTO INDUSTRY IT ALSO REFLECTS NISSAN'S DESPERATE EFFORT TO REDUCE PRODUCTION COSTS IN THE FACE OF STALLING NEW CAR SALES RESULTING FROM THE NATION'S ECONOMIC SLUMP AND THE HIGHER YEN AGAINST THE DOLLAR WHICH CUTS ITS EXPORT PROFITS NISSAN HAS SAID IT WILL CLOSE ITS ZAMA FACTORY JUST SOUTHWEST OF TOKYO IN 1995 AND CUT ABOUT 8000 EMPLOYEES NISSAN IS ALSO NEGOTIATING WITH MAZDA MOTOR CO ABOUT COOPERATION ON ORIGINAL EQUIPMENT MANUFACTURING OTHER COMPANIES ARE CONSIDERING SIMILAR MOVES THE US HAS CRITICIZED JAPANESE AUTO MAKERS FOR BLOCKING OUT US PARTS MAKERS BECAUSE OF ITS KEIRETSU RELATIONS 9305140032 930514 US PAYS BULK OF SALARY FOR EXECUTIVE IN HUNGARY WASHINGTON THE US IS PAYING 100000 OF THE ANNUAL SALARY OF THE HEAD OF THE HUNGARIAN GOVERNMENT HOLDING COMPANY THAT OWNS MORE THAN 100 OF THAT NATION'S MAJOR COMPANIES PAL TELEKI A HUNGARIANAMERICAN ON LEAVE FROM A JOB WITH THE US GEOLOGICAL SURVEY IS RECEIVING THE BULK OF HIS SALARY FROM FUNDS PROVIDED BY THE USFINANCED HUNGARIANAMERICAN ENTERPRISE FUND THE FUND WAS SET UP ALONG WITH SIMILAR FUNDS IN OTHER EAST EUROPEAN COUNTRIES TO ENCOURAGE PRIVATE ENTERPRISE US OFFICIALS INSIST THAT THERE IS NOTHING ILLEGAL ABOUT USING US TAXPAYER MONEY FROM THE ENTERPRISE FUND TO PAY THE BULK OF MR TELEKI'S SALARY WHICH WAS REPORTED IN YESTERDAY'S WASHINGTON POST THEY SAY HUNGARY COULDN'T AFFORD TO PAY THE SALARY NEEDED TO ATTRACT HIM TO RUN A HOLDING COMPANY THAT MANAGES AN IMPORTANT SEGMENT OF ITS ECONOMY US OFFICIALS HERE SAY THEY WEREN'T CONSULTED ABOUT FINANCING MR TELEKI'S SALARY THE ENTERPRISE FUNDS WERE DELIBERATELY SET UP TO BE SEMIAUTONOMOUS SO THEY COULD FUNCTION LIKE PRIVATE INVESTMENT COMPANIES BUT SOME MEMBERS OF CONGRESS ARE BOUND TO SQUAWK OVER THIS USE OF TAXPAYERS' MONEY LAST MONTH REP DAVID OBEY D WIS COMPLAINED THAT THE ENTERPRISE FUNDS WERE TOO INDEPENDENT AND CALLED FOR A CONGRESSIONAL LOOK INTO THEIR ACTIVITIES 9305140031 930514 CHARLES GIVENS SETTLES SUIT ALLEGING UNSOUND ADVICE CEDAR RAPIDS IOWA CHARLES J GIVENS JR THE BESTSELLING AUTHOR AND SELFPROCLAIMED FINANCIAL GURU AGREED TO SETTLE A LAWSUIT BROUGHT BY AN IOWA WOMAN WHO CLAIMED HIS ADVICE LEFT HER NEARLY DESTITUTE TERMS WEREN'T DISCLOSED AS PART OF THE SETTLEMENT BOTH SIDES AGREED TO SAY ONLY THAT THEY ARE SATISFIED IN THE LAWSUIT SALLY BEADLE OF CEDAR RAPIDS CLAIMED THAT IN 1990 HER HUSBAND RON 28 CANCELED THE 20000 UNINSUREDMOTORIST PORTION OF HIS AUTO INSURANCE AND 50000 IN UNIVERSAL LIFEINSURANCE COVERAGE AFTER ATTENDING A FINANCIAL SEMINAR RUN BY THE CHARLES J GIVENS ORGANIZATION A FEW MONTHS LATER MR BEADLE DIED IN A COLLISION WITH AN UNINSURED DRIVER MRS BEADLE SAID THAT AS A RESULT OF FOLLOWING MR GIVENS'S ADVICE SHE WAS LEFT WITHOUT ENOUGH MONEY TO RAISE HER THREE YOUNG CHILDREN IN MARCH AN EIGHTPERSON JURY IN CEDAR RAPIDS FEDERAL COURT FOUND THAT MR GIVENS HIS ORGANIZATION AND HIS SON CHARLES J GIVENS III A LECTURER IN THE FINANCIALADVICE COMPANY HAD MADE A TOTAL OF 35 INTENTIONAL MISREPRESENTATIONS DAMAGES HAD NOT YET BEEN ASSESSED MR GIVENS WHOSE BESTSELLING BOOKS INCLUDE WEALTH WITHOUT RISK WAS THE SUBJECT OF AN AUGUST 1991 PAGE ONE ARTICLE IN THE WALL STREET JOURNAL 9305140030 930514 MONDALE SEEN TO BE NAMED US AMBASSADOR TO JAPAN WASHINGTON PRESIDENT CLINTON IS EXPECTED TO NOMINATE FORMER VICE PRESIDENT WALTER MONDALE TO BE US AMBASSADOR TO JAPAN A NATION WITH WHICH THE US HAS INCREASINGLY STRAINED RELATIONS OVER TRADE ISSUES MR CLINTON ALSO IS EXPECTED TO SELECT JAMES JONES A FORMER DEMOCRATIC CONGRESSMAN FROM OKLAHOMA TO BE ENVOY TO MEXICO ALTHOUGH NEITHER PICK HAS BEEN MADE OFFICIALLY US OFFICIALS SAID MR CLINTON HAS SETTLED ON BOTH CHOICES BARRING SOME UNFORESEEN DEVELOPMENTS DURING THE SCREENING PROCESS EARLIER THIS YEAR MR MONDALE A FORMER MINNESOTA SENATOR WHO WAS VICE PRESIDENT IN THE CARTER ADMINISTRATION TURNED DOWN A CHANCE TO BE THE US ENVOY TO RUSSIA MR MONDALE WOULD EDGE OUT A FORMER COLLEAGUE FROM THE CARTER ADMINISTRATION RICHARD HOLBROOKE WHO HAD BEEN MENTIONED PROMINENTLY FOR THE TOKYO POST MR HOLBROOKE A FORMER ASSISTANT SECRETARY OF STATE FOR ASIA WAS AN INFORMAL ADVISER ON ASIA TO MR CLINTON DURING THE PRESIDENTIAL CAMPAIGN HOWEVER MR HOLBROOKE ANGERED WARREN CHRISTOPHER THE CURRENT SECRETARY OF STATE DURING THE CAMPAIGN BECAUSE OF REPORTS THAT ON A TRIP TO CHINA HE REPRESENTED HIMSELF AS AN ENVOY FROM MR CLINTON MR JONES WHO WOULD REPRESENT THE US IN MEXICO CITY IS CHAIRMAN OF THE AMERICAN STOCK EXCHANGE THE PROSPECT OF HIS APPOINTMENT WAS FIRST REPORTED IN THE NEW YORK TIMES 9305140029 930514 WHO'S NEWS MANHATTAN LIFE INSURANCE CO MANHATTAN LIFE INSURANCE CO CINCINNATI GLENN D NICHOLSON 46 YEARS OLD SENIOR VICE PRESIDENT AND CHIEF MARKETING OFFICER WAS NAMED TO THE BOARD HE SUCCEEDS WILMONT F WHEELER JR WHO RETIRED FROM THE BOARD 9305140028 930514 IF YOU DIG UNUSUAL COLLECTIBLES THIS BEATS EVERYTHING IN SPADES BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL EASTON MASS SOME COLLEGES ARE KNOWN FOR THEIR LIBRARIES OTHERS FOR THEIR STARGAZING OBSERVATORIES VISITORS COME TO STONEHILL COLLEGE HERE TO SEE SHOVELS PILED IN NO PARTICULAR ORDER AGAINST A WALL IN THE BASEMENT OF THE SCHOOL'S ADMINISTRATION BUILDING ARE 784 SHOVELS NO TWO ARE ALIKE AND THERE'S ONE FOR JUST ABOUT ANY CHORE IMAGINABLE THERE ARE TSHAPED HANDLES FOR PRESSING STRAIGHT DOWN YSHAPED HANDLES FOR HEAVING OVER THE SHOULDER AND 15FOOT HANDLES FOR DISTANCING SEWAGE WORKERS FROM THEIR WORK SOME SHOVELS HAVE SLOTTED BLADES GOOD FOR SHAKING OUT THE DIRT OR FOR POTATO FARMING EACH IMPLEMENT IS CLEARLY MARKED TO REFLECT THE DIVERSITY IN DIGGING AND PRESERVED UNDER CORRECT HUMIDITY CONDITIONS FOR POSTERITY THE COLLECTION WAS ONCE FEATURED IN A TRAVELER'S GUIDE BUT THE SCHOOL QUICKLY REQUESTED THAT THE LISTING BE WITHDRAWN WE GOT SO MANY CALLS WE COULDN'T GET ANY WORK DONE SAYS LOUISE KENNEALLY THE COLLEGE'S ARCHIVIST WHO HAS CONDUCTED SHOVEL TOURS FOR SUCH GROUPS AS THE NEW ENGLAND CHIEFS OF POLICE ASSOCIATION THE MASONS AND THE KNIGHTS OF COLUMBUS THE TOUR'S GRAND FINALE IS A VIEWING OF 25 SILVERPLATED SHOVELS THAT WON A BRONZE MEDAL AT AN 1876 PHILADELPHIA EXHIBIT CELEBRATING THE NATION'S CENTENNIAL THE COLLECTION SPANS THE HISTORY OF SHOVELS IN THE NATION FROM 1774 WHEN THE FIRST ONE WAS MADE IN THE US TO THE MODERNDAY GARDEN VARIETY THE SHOVELS HAD BELONGED TO AMES CO A MAKER OF LAWN AND GARDEN TOOLS THAT SOLD A 375ACRE PROPERTY HERE TO THE SCHOOL AND MOVED TO WEST VIRGINIA IN 1935 THE COLLECTION ALONG WITH A LIBRARY OF SHOVEL BLUEPRINTS AND PATENTS AS WELL AS LEDGERS AND LETTERS OF MEMBERS OF THE FOUNDING AMES FAMILY WAS DISCOVERED IN THE 1970S BY ARNOLD B TOFIAS A LOCAL DEVELOPER HE DONATED THE COLLECTION TO THE COLLEGE THE TOFIAS FIND HAS ELICITED RESEARCHERS' PRAISE IN A RECENT LETTER TO MRS KENNEALLY THEODORE W KURY A BUFFALO STATE COLLEGE PROFESSOR OF GEOGRAPHY CALLED THE AMES COLLECTION A HERETOFORE UNCITED TREASURE TROVE HOWEVER HE WAS MOSTLY REFERRING TO SECTIONS IN THE JOURNALS AND LETTERS PERTAINING TO IRON FURNACES AS FOR THE SHOVELS IMPLEMENTS BY THEMSELVES ARE NOT AN OUTSTANDING THING HE SAYS TWENTY MINUTES AFTER SEEING THEM I COULDN'T TELL YOU WHAT I SAW FRANKLY I WALKED THROUGH THE SHOVEL COLLECTION TO KILL TIME 9305140027 930514 WHO'S NEWS SCIENTIFIC SOFTWAREINTERCOMP INC SCIENTIFIC SOFTWAREINTERCOMP INC DENVER EDWARD O PRICE JR A 64YEAROLD PRIVATE INVESTOR AND CONSULTANT WAS ELECTED A DIRECTOR OF THIS COMPUTER APPLICATION SOFTWARE COMPANY INCREASING THE BOARD'S SIZE TO NINE MEMBERS 9305140026 930514 WHO'S NEWS MICROTEST INC MICROTEST INC PHOENIX JON A SHOMER 49 YEARS OLD RESIGNED AS PRESIDENT AND THE COMPANY HAS BEGUN A SEARCH FOR A SUCCESSOR IT WAS A MUTUAL DECISION BETWEEN THE BOARD AND JON A COMPANY SPOKESWOMAN SAID MICROTEST MAKES PRODUCTS THAT DIAGNOSE AND HELP RESOLVE COMPUTER CABLE PROBLEMS MR SHOMER WHO CONTINUES AS A DIRECTOR SAID HIS DEPARTURE WAS AICABLE HE SAID THE BOARD HOPES TO QUICKLY RECRUIT A NEW PRESIDENT WHO CAN WORK CONSTRUCTIVELY WITH DAVID BOLLES 39 THE COMPANY'S CHAIRMAN 9305140025 930514 BUSINESS BRIEF CHEMICAL FINANCIAL CORP COMPANY AGREES TO PURCHASE KEY STATE IN A STOCK SWAP CHEMICAL FINANCIAL CORP MIDLAND MICH AGREED TO ACQUIRE KEY STATE BANK IN A TRANSACTION VALUED AT ABOUT 26 MILLION THE TRANSACTION IS EXPECTED TO BE COMPLETED BY DEC 31 KEY BASED IN OWOSSO MICH OPERATES EIGHT BANKING OFFICES UNDER THE AGREEMENT KEY SHAREHOLDERS WILL RECEIVE SHARES OF CHEMICAL'S COMMON STOCK IN EXCHANGE FOR THEIR SHARES OF KEY'S COMMON STOCK KEY'S STOCK IS HELD BY 310 SHAREHOLDERS AND ISN'T WIDELY TRADED THE COMPANIES SAID THE CHEMICAL SHARES TO BE RECEIVED WILL HAVE AN AGGREGATE MARKET VALUE EQUAL TO 200 OF KEY SHAREHOLDERS' EQUITY AS OF MARCH 31 KEY HAD A BOOK VALUE OF 2352 A SHARE THE TRANSACTION IS SUBJECT TO APPROVAL BY KEY'S SHAREHOLDERS AND BANK REGULATORY AGENCIES THE COMPANIES SAID AS OF MARCH 31 KEY HAD 164 MILLION IN TOTAL ASSETS AND CHEMICAL HAD TOTAL ASSETS OF 14 BILLION CHEMICAL FINANCIAL PRESIDENT ALAN W OTT SAID THE LOCATIONS OF KEY'S OFFICES WILL COMPLEMENT OUR OWN AND AS A RESULT WILL EXPAND OUR FINANCIAL PRODUCTS AND SERVICES INTO NEW BANKING MARKETS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY CHEMICAL SHARES CLOSED AT 4650 UP 1 9305140024 930514 FRENCH CONSUMER PRICE INDEX PARIS FRANCE'S CONSUMER PRICE INDEX ROSE BETWEEN 01 AND 02 IN APRIL FROM MARCH LEAVING THE YEARONYEAR INFLATION RATE AT 21 TO 22 ACCORDING TO PRELIMINARY SEASONALLY ADJUSTED DATA FROM THE NATIONAL INSTITUTE OF STATISTICS AND ECONOMIC STUDIES IN MARCH THE INDEX GAINED 05 MONTHONMONTH WHILE THE 12MONTH RATE WAS UP 22 9305140023 930514 ENTERPRISE BATTLING A GOLIATH REMAINS AS DAUNTING A TASK AS EVER MICROBREWERY FIGHTS ANHEUSER IN MISSOURI LEGISLATURE IN BID TO BOOST OUTPUT BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL SMALLBUSINESS OWNER THOMAS F SCHLAFLY FINDS HIMSELF LOCKED IN A MOST UNENVIABLE FIGHT BATTLING A BIG POWERFUL BUSINESS FOE ON ITS HOME TURF MR SCHLAFLY ENVISIONS A HEADY FUTURE IN BEER IF HIS ST LOUIS MICROBREWERY CAN OVERCOME WHAT HE CLAIMS IS MACROOPPOSITION FROM ANHEUSERBUSCH COS THE NATION'S BIGGEST BREWER ALSO BASED IN ST LOUIS MR SCHLAFLY THE MAJORITY OWNER OF CLOSELY HELD SAINT LOUIS BREWERY INC WANTS TO REMOVE LEGAL OBSTACLES TO THE COMPANY'S GROWTH HE COMPLAINS THAT ANHEUSERBUSCH BEST KNOWN AS THE MAKER OF BUDWEISER BEER IS USING ITS POLITICAL POWER IN THE MISSOURI LEGISLATURE TO FOIL THE TINY UPSTART'S PLANS MANY SMALL BUSINESSES BELIEVE THAT STATE LAWS COMMONLY FAVOR ENTRENCHED COMPANIES ESPECIALLY THOSE WITH HEADQUARTERS OR MAJOR OPERATIONS IN THEIR STATES THEY SAY ESTABLISHED GIANTS ARE LIKELY TO GET A SYMPATHETIC EAR FROM LEGISLATORS EVEN WHEN THEY OVERREACT TO TINY COMPETITIVE THREATS IN MISSOURI WHERE ANHEUSERBUSCH HAS GREAT INFLUENCE EXTREMELY RESTRICTIVE LAWS MAKE IT IMPOSSIBLE FOR MICROBREWERIES TO GROW VERY BIG SAINT LOUIS BREWERY IS TRYING TO CHANGE ALL THAT LAWMAKERS SAY THE DAVIDANDGOLIATH BEER BATTLE COULD BE DECIDED TODAY THE LAST DAY OF THE CURRENT LEGISLATIVE SESSION THE ODDS ARE THAT GOLIATH WILL PREVAIL BY CONCEDING ONLY A LITTLE TO DAVID MR SCHLAFLY A LAWYER WHO WORKS HALFTIME AT HIS MICROBREWERY IS TRYING TO CHANGE STATE LAWS THAT DICTATE HOW MUCH BEER BREW PUBS CAN MAKE AND WHERE THEY CAN SELL IT ANHEUSERBUSCH PRESSING FOR MUCH LESS OF A CHANGE HAS ENLISTED THE HELP OF JOHN F BRITTON AN INDEPENDENT LOBBYIST KNOWN IN THE STATE LEGISLATURE AS MR ANHEUSERBUSCH ACCORDING TO MR SCHLAFLY AND HIS ALLIES MR SCHLAFLY SAYS HE CAN'T AFFORD SUCH A LOBBYIST HIMSELF UNFORTUNATELY FOR SAINT LOUIS BREWERY OUR LOBBYING AND ADVERTISING BUDGETS ARE MICRO ALSO THE ENTREPRENEUR FRETS MR BRITTON COULDN'T BE REACHED FOR COMMENT HIS WIFE SAID THE LOBBYIST WHOSE BIGGEST CLIENT IS ANHEUSERBUSCH WAS BUSY LOBBYING IN A MARCH INTERVIEW WITH THE ST LOUIS BUSINESS JOURNAL MR BRITTON SAID HE HAD TOLD LEGISLATORS THAT SAINT LOUIS BREWERY WAS SEEKING TO MAKE AN INORDINATE AMOUNT OF BEER SAINT LOUIS BREWERY BEGAN OPERATING IN 1991 AS A BREW PUB IT OPERATES A BAR AND RESTAURANT THAT SERVE A DOZEN DIFFERENT BEERS BREWED ON THE PREMISES THE OPERATION HAS ABOUT 45 EMPLOYEES INCLUDING MANY PARTTIMERS UNDER CURRENT STATE LAW THE COMPANY CAN MAKE NO MORE THAN 2500 BARRELS OF BEER A YEAR AND CAN SELL THE BREW ONLY ON ITS PREMISES THE COMPANY EXPECTS SALES OF NEARLY 15 MILLION THIS YEAR HALF FROM FOOD MR SCHLAFLY SAYS ALTHOUGH THE COMPANY'S PRESENT BEER OUTPUT IS ABOUT 1200 BARRELS A YEAR HE SAYS THE BUSINESS NEEDS A MUCH HIGHER CEILING TO EXPAND LAST FALL MR SCHLAFLY URGED STATE LEGISLATORS TO RAISE THE ANNUAL PRODUCTION CEILING FOR BREW PUBS TO 60000 BARRELS THE AMOUNT EQUALS WHAT ANHEUSERBUSCH PRODUCES IN ONE AFTERNOON HE SAYS ACTUALLY THAT WOULD BE THE PRODUCTION IN A VERY SHORT AFTERNOON ANHEUSERBUSCH HAS REPORTED THAT IT PRODUCED 868 MILLION BARRELS OF BEER LAST YEAR TO MEET CUSTOMERS' DEMANDS MR SCHLAFLY ALSO WANTS TO BOTTLE THE BEER NOW SOLD ON TAP AND SELL IT THROUGH DISTRIBUTORS TO RETAIL STORES AND OTHER RESTAURANTS UNDER MISSOURI LAW YOU ARE NOT ALLOWED TO BUY SCHLAFLY BEERS IN ANY OTHER RESTAURANT OR STORE BECAUSE OUR TAP ROOM RESTAURANT IS LOCATED IN MISSOURI MR SCHLAFLY SAID IN A MARCH LETTER TO 1000 CUSTOMERS HIS LETTER URGED CUSTOMERS TO WRITE THEIR STATE LAWMAKERS ON HIS BEHALF AT THE SAME TIME SUPERMARKET SHELVES AND RESTAURANTS IN MISSOURI OFFER DOZENS AND DOZENS OF BEERS BREWED BY OUTOFSTATE MICROBREWERIES MANY OF WHICH OPERATE THEIR OWN RESTARANTS IN OTHER STATES THE LETTER CONTINUED STATE SEN WAYNE GOODE A ST LOUIS COUNTY DEMOCRAT SAYS HE AND OTHERS TOOK UP MR SCHLAFLY'S CAUSE INITIALLY BY DRAFTING A MICROBREWERY BILL WITH THE CHANGES SOUGHT BUT SEN GOODE SAYS MR BRITTON THE ANHEUSERBUSCH LOBBYIST OPPOSED THE HIGHER CEILINGAPPARENTLY OUT OF FEAR THAT MORE MICROBREWERIES MIGHT EMERGE AND GULP DOWN A SHARE OF THE BEER GIANT'S HOME MARKET AT THE MOMENT MISSOURI ONLY HAS THREE MICROBREWERIES BESIDES BREWING BEER ANHEUSERBUSCH OWNS THE ST LOUIS CARDINALS BASEBALL TEAM THE STATE LEGISLATURE ONCE PASSED A SPECIAL BILL ENABLING THE COMPANY TO SELL ITS OWN BEER AT THE BALLPARK ORDINARILY BIG BREWERIES ARE BARRED FROM OWNING RETAIL BEER OUTLETS SPEAKING OF ANHEUSERBUSCH SEN GOODE SAYS THEY ARE A WELLTHOUGHTOF COMPANY EVERYTHING ELSE BEING EQUAL PEOPLE HERE WILL BACK THEM BUT IN MARCH LOCAL PUBLICATIONS IN MISSOURI REPORTED THE LOBBYING EFFORT AGAINST TINY SAINT LOUIS BREWERY THE EMBARRASSED BIG BREWER SEEMED TO SOFTEN ITS STANCE SEN GOODE SAYS INDEED MR SCHLAFLY SAYS HE QUIETLY NEGOTIATED A COMPROMISE WITH AN ANHEUSERBUSCH OFFICIAL BOTH SIDES WOULD ACCEPT A PRODUCTION CEILING OF 17500 BARRELS A YEAR FOR BREW PUBS SEN GOODE PROPOSED THE LOWER FIGURE AS AN AMENDMENT TO A MEASURE DESIRED BY ANHEUSERBUSCH PERMITTING SUNDAY RETAILSTORE SALES OF BEER THERE'S DISAGREEMENT ABOUT WHAT HAPPENED NEXT MR SCHLAFLY INSISTS THAT HE WAS DOUBLECROSSED HE SAYS MR BRITTON THE LOBBYIST KEPT PLUGGING AWAY FOR AN ANNUAL CEILING LOWER THAN 17500 BARRELS IF SO MR BRITTON'S EFFORTS SUCCEEDED EARLIER THIS WEEK THE STATE SENATE APPROVED A HOUSE VERSION OF THE SUNDAYSALES BILL THOUGH THE HOUSE HADN'T ACTED ON THE VERSION YET ACCORDING TO SEN GOODE THE SENATE MEASURE INCLUDES A NEW BREWPUB CEILING OF 10000 BARRELS A YEAR A FOURFOLD INCREASE BUT WAY BELOW THE 60000 ORIGINALLY SOUGHT BY MR SCHLAFLY I'M VERY ANNOYED MR SCHLAFLY SAYS I THOUGHT I HAD A DEAL I DON'T KNOW WHERE IT BROKE DOWN IN A STATEMENT YESTERDAY STEPHEN K LAMBRIGHT A VICE PRESIDENT AND GROUP EXECUTIVE OF ANHEUSERBUSCH SAID HIS COMPANY DIDN'T OPPOSE THE 17500 BARREL FIGURE HOWEVER SOME LEGISLATORS FELT THE INCREASE TO 17500 BARRELS WAS TOO BIG MR LAMBRIGHT SAID THE BIG BREWER DIDN'T OPPOSE ALLOWING MICROBREWERIES TO SELL THROUGH WHOLESALERS TO RETAIL OUTLETS MICROBREWERIES ARE A PLUS FOR THE BEER INDUSTRY AND SAINT LOUIS BREWERY IS A WELCOME ADDITION TO THE MARKETPLACE MR LAMBRIGHT SAID MR SCHLAFLY AND HIS ALLIES ARGUE THAT THE BEER GIANT IS WRONG TO FEEL THREATENED BY A CONSIDERABLY HIGHER CEILING IN FACT THEY CONTEND ENCOURAGING THE SPREAD OF BREW PUBS WILL HELP MAKE BEER MORE POPULAR AND THUS CREATE MORE DEMAND EVEN FOR BUDWEISER IN ANY CASE SAINT LOUIS BREWERY WILL STILL HAVE PLENTY OF ROOM TO GROW IF THE HOUSE TODAY ACCEPTS THE ANNUAL CEILING OF 10000 BARRELS IF THE TINY COMPANY SHOULD OUTGROW THAT CEILING WE'LL HAVE THE OPPORTUNITY TO LOOK AT THE ISSUE AGAIN SEN GOODE PROMISES 9305140022 930514 PANEL PASSES MEASURE TO END MOST SUBSIDIES FOR NONPROFIT MAILERS WASHINGTON THE HOUSE POST OFFICE COMMITTEE APPROVED A MEASURE CALLING FOR AN END TO GOVERNMENT SUBSIDIES FOR MOST NONPROFIT MAILERS ACCORDING TO THE LEGISLATION NONPROFIT MAILERS' RATES FOR US POSTAL SERVICE THIRDCLASS MAIL WOULD INCREASE 4 EACH YEAR FOR THE NEXT SIX YEARS THE INCREASE WOULD TACK ON A HALFCENT ANNUALLY TO THE COST OF A ONEOUNCE LETTER SENT BY THIRDCLASS MAIL RATES FOR SECONDCLASS MAIL WOULD BE INCREASED 2 EVERY YEAR THE GOVERNMENT WOULD CONTINUE TO PROVIDE SUBSIDIES FOR MAIL FOR THE BLIND AND FOR THE MAILING OF VOTINGRIGHTS MATERIALS THE LEGISLATION ALSO EARMARKED 29 MILLION IN PAYMENTS EVERY YEAR UNTIL 2035 TO HELP COVER COSTS THAT THE POSTAL SERVICE WILL INCUR WHILE PHASING IN THE PLAN AND TO PAY OFF A POSTAL SERVICE SHORTAGE FROM NONPROFIT MAILINGS IN THE PAST TWO YEARS POSTAL SERVICE OFFICIALS APPLAUDED THE RATE INCREASE FOR NONPROFIT MAILERS BUT THEY SAID THE INCREASES WEREN'T LARGE ENOUGH AND THAT GENERAL RATEPAYERS WILL HAVE TO SHOULDER A FUTURE INCREASE TO COMPENSATE FOR THE DEFICIENCY NONPROFIT MAILERS HAVE MIXED FEELINGS ABOUT THE PROPOSAL WHILE MAILING RATES WOULD INCREASE THE BOOSTS COME IN A MORE MANAGEABLE HELPING THAN THE THREECENT LUMPSUM INCREASE THEY HAD FEARED IF THIS IS THE END PRODUCT THEN WE'LL PROBABLY SUPPORT IT SAID BRIAN HUMMELL AN ASSISTANT DIRECTOR FOR THE NONPROFIT MAILER'S ALLIANCE IT'S NOT THE BEST THING THAT COULD'VE HAPPENED BUT IT'S NOT THE WORST 9305140021 930514 ALCOA REYNOLDS METALS TO BEGIN NEGOTIATING TWO UNION CONTRACTS A WALL STREET JOURNAL NEWS ROUNDUP ALUMINUM CO OF AMERICA AND REYNOLDS METALS CO THE NATION'S TWO LARGEST ALUMINUM PRODUCERS WILL BEGIN TALKS MONDAY TO REACH LABOR AGREEMENTS REPLACING ACCORDS THAT EXPIRE MAY 31 THE TALKS WITH THE UNITED STEELWORKERS AND THE ALUMINUM BRICK AND GLASS WORKERS COVER SOME 18000 US WORKERS AT THE TWO COMPANIES NEGOTIATIONS WILL BE HELD IN CLEVELAND A YEAR AGO PITTSBURGHBASED ALCOA AND RICHMOND VABASED REYNOLDS AGREED TO A ONEYEAR EXTENSION OF THE 43MONTH CONTRACTS THAT EXPIRED MAY 31 1992 THE COMPANIES AND UNIONS FAILED TO MEET THEIR TARGET OF REACHING A NEW AGREEMENT BY LAST OCT 2 ANALYSTS EXPECT THE COMPANIES TO PUSH FOR MANAGED HEALTHCARE PLANS TO REDUCE COSTS WHILE GRANTING SMALL WAGE INCREASES ALUMINUM ANALYST STEWART SPECTOR SAID THERE DOESN'T SEEM TO BE MUCH CONCERN ABOUT A STRIKE IN THE MARKETPLACE BECAUSE OF AN OVERSUPPLY OF ALUMINUM 9305140020 930514 COMMODITIES GOLD PRICES LEAP 750 ON SPECULATIVE DEMAND AS TRADERS MULL IMPACT OF INFLATIONARY REPORTS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES SOARED FOR A SECOND CONSECUTIVE DAY JUMPING 750 AN OUNCE ON HEAVY SPECULATIVE DEMAND AND ON GROWING CONCERNS THAT INFLATION MAY NO LONGER STAY SUBDUED IN THE US ECONOMY ON NEW YORK'S COMMODITY EXCHANGE THE ACTIVE JUNE CONTRACT SETTLED AT 36930 HAVING TRADED AS HIGH AS 373 IN HECTIC INTRADAY ACTIVITY THAT WAS FUELED LARGELY BY OPTIONRELATED BUYING DEALERS AND ANALYSTS SAID WITH THE 12 SURGE OVER THE LAST TWO DAYS OF TRADING THE JUNE GOLD CONTRACT HAS CLIMBED NEARLY 13 FROM SEVENYEAR LOWS POSTED IN MARCH OPEN INTEREST OR THE AMOUNT OF OUTSTANDING CONTRACTS IS SOARING IN THE COMEX GOLD PITS UP 70 THIS WEEK FROM YEAREARLIER LEVELS TRADERS SAID THAT GOLD FUTURES PRICES WERE BUOYED IN PART BY CONCERN OVER A LABOR DEPARTMENT REPORT THAT SHOWED CONSUMER PRICES HAD JUMPED 04 IN APRIL THE INCREASE IN THE CPI THE LARGEST SPURT IN THREE MONTHS WAS CONSIDERABLY HIGHER THAN WALL STREET EXPECTATIONS GOLD WHICH CONTINUES TO BE USED AS A HEDGE AGAINST INFLATION AMONG INVESTORS HAD BEEN BOLSTERED ON WEDNESDAY AS WELL BY AN UNEXPECTEDLY LARGE INCREASE IN THE PRODUCER PRICE INDEX BOTH INFLATION REPORTS ANALYSTS CAUTIONED CONTAINED WEATHERRELATED DISTORTIONS IN THE VOLATILE FOOD SECTOR BUT THE REPORTS NONETHELESS WERE REASON TO BECOME MORE ATTENTIVE TO THE FUTURE PACE OF PRICE INCREASES ANALYSTS SAID THAT ATTENTION MAY PROVE BULLISH FOR GOLD THEY SAID THERE'S A GROWING PERCEPTION THAT INFLATION HAS STARTED TO PICK UP AND THERE'S CONCERN ABOUT THE LACK OF RESPONSE TOWARD CONTROLLING IT BY THE FEDERAL RESERVE SAID BERNARD SAVAIKO A SENIOR COMMODITY ANALYST WITH PAINEWEBBER MR SAVAIKO SAID THE CPI REPORT SUGGESTS THAT THE US ECONOMY HAS ENTERED AN ENVIRONMENT OF NEGATIVE REAL INTEREST RATES WHERE SHORTTERM INTEREST RATES ON SUCH INTERESTBEARING INSTRUMENTS LIKE MONEYMARKET BANK CDS ARE LOWER THAN THE PROJECTED RATE OF INFLATION BASED ON YEARTODATE READINGS OF THE CPI THE ANNUALIZED RATE OF INFLATION BASED ON APRIL'S CPI DATA IS 47 WHEREAS THE PREVAILING SIXMONTH CD RATES ARE 3 TO 32 SUCH AN ENVIRONMENT IS BULLISH FOR GOLD PRICES BECAUSE THE OPPORTUNITY COST OF HOLDING GOLD WHICH OFFERS NO INTEREST OR DIVIDEND IS SHARPLY DIMINISHED MR SAVAIKO SAID RETAIL INVESTORS MAY NOW BE MORE ATTRACTED TO THE GOLD AND PRECIOUS METALS MARKETS THAN AT ANY TIME IN YEARS BUT ANALYSTS CONTINUED TO CAUTION AGAINST SEEING THE GOLD RALLY OF RECENT MONTHS AS AN ANTIINFLATIONARY INVESTMENT STRATEGY AMONG INVESTORS I STILL DON'T SEE IT AT THIS POINT AS RESPONDING TO INFLATIONARY MOVES SAID IAN MACDONALD WHO RUNS PRECIOUS METALS TRADING FOR CREDIT SUISSE THE SERIOUS MONEY MANGERS ARE PUTTING MONEY INTO THIS MARKET BECAUSE THEY SEE POSITIVE FUNDAMENTALS THEY SEE A SUPPLY SHORTAGE IN TERMS OF MINED PRODUCTION OF UP TO 1000 METRIC TONS THIS YEAR A METRIC TON IS THE EQUIVALENT OF 2204 POUNDS MR MACDONALD SAID THAT WHILE SUPPLY GROWTH IS EXPECTED TO SLOW THIS YEAR DESPITE THE HIGHER PRICES DEMAND FROM CHINA APPEARS TO BE SNOWBALLING AMID RISING INFLATION AND A DEPRECIATING LOCAL CURRENCY THE YUAN I DON'T THINK IT'S IN THE US I THINK IT'S IN CHINA HE SAID HERE'S A COUNTRY THAT'S GROWING VERY RAPIDLY WITH INCOMES GROWING RAPIDLY AND WITH INFLATION OVER 10 A PRIME CANDIDATE FOR A COUNTRY LIKELY TO HAVE BIG DEMAND FOR GOLD EARLIER THIS WEEK GOLD FIELDS MINERALS SERVICE AN INDUSTRY RESEARCH GROUP REPORTED THAT CHINA MAY HAVE ACCOUNTED FOR 350 TONS OF GOLD DEMAND LAST YEAR SURPASSING THE US AS THE WORLD'S LARGEST GOLD CONSUMER ANALYSTS CAUTION THAT RISING PRICES MAY DRAW SALES BY PRODUCERS INDEED THE RETREAT YESTERDAY FROM AN INTRADAY GAIN OF NEARLY 12 WAS THE RESULT OF SUCH SELLING SOME TRADERS SAID IN OTHER COMMODITY MARKETS GRAINS & SOYBEANS US CROP PRICES FELL AMID PROFITTAKING AND THE DECISION BY SOME METEOROLOGISTS TO RESURRECT THE CHANCE FOR CLEARING SKIES IN THE NATION'S MIDSECTION SAID JOHN KLEIST DIRECTOR OF AGRICULTURAL RESEARCH AT QUANTUM FINANCIAL SERVICES INC CHICAGO PLANTING OF THE US CORN AND SOYBEAN CROP IS RUNNING SEVERAL WEEKS BEHIND SCHEDULE BECAUSE UNUSUALLY RAINY WEATHER HAS MADE FIELDS TOO MUDDY FOR FARM EQUIPMENT DRY WEATHER WOULD ALSO SPEED THE DEVELOPMENT OF THE HARD RED WINTER WHEAT CROP IN THE SOUTHERN PLAINS WHICH IS NEARING HARVEST IN TRADING AT THE KANSAS CITY BOARD OF TRADE THE EXPIRING WHEAT CONTRACT FOR MAY DELIVERY SANK 1775 CENTS A BUSHEL TO SETTLE AT 341 9305140019 930514 WHO'S NEWS FLEET FINANCIAL GROUP INC FLEET FINANCIAL GROUP INC PROVIDENCE RI R HAROLD OWENS WAS NAMED PRESIDENT OF THIS BANK HOLDING COMPANY'S FLEET FINANCE INC UNIT IN ATLANTA MR OWENS 45 YEARS OLD SUCCEEDS JOHN R STRICKLAND WHO CONTINUES TO SERVE AS CHIEF EXECUTIVE OFFICER OF THE UNIT MR STRICKLAND 54 IS ON A MEDICAL LEAVE OF ABSENCE A SPOKESWOMAN SAID FLEET FINANCE A CONSUMER FINANCE AND MORTGAGE LENDING CONCERN SAID MR OWENS WILL CONTINUE TO SERVE AS CHIEF OPERATING OFFICER 9305140018 930514 WHO'S NEWS COMPUSA NAMES MORTON CHAIRMAN IN A REORGANIZATION DALLAS COMPUSA INC SAID NATHAN MORTON 44 YEARS OLD WAS PROMOTED TO CHAIRMAN AS PART OF A CORPORATE REORGANIZATION MR MORTON WHO RETAINS HIS POSITION AS CHIEF EXECUTIVE OF THE COMPUTERSTORE CHAIN SUCCEEDS RONALD N DUBIN 59 MR DUBIN AFTER SERVING AS CHAIRMAN SINCE COMPUSA WAS ACQUIRED BY DUBIN CLARK & CO IN EARLY 1989 RESIGNED FROM THE BOARD AND ENTERED INTO A TWOYEAR CONSULTING AGREEMENT WITH THE COMPANY MR MORTON SAID THAT AS CHAIRMAN MR DUBIN CONSULTED WITH THE COMPANY RATHER THAN INVOLVING HIMSELF IN DAYTODAY CONCERNS SO THE CHANGE WILL HAVE LITTLE IMPACT ON THE COMPANY'S OPERATIONS JAMES HALPIN FORMERLY PRESIDENT OF WABAN INC'S HOME BASE AND BJ'S WHOLESALE CLUB UNITS WAS APPOINTED PRESIDENT AND CHIEF OPERATING OFFICER OF COMPUSA MR HALPIN 42 ALSO WAS ELECTED TO THE COMPANY'S BOARD AS PRESIDENT HE SUCCEEDS MR MORTON KEITH COSTINE 51 LEAVES HIS POST AS CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT TO BECOME PRESIDENT AND CHIEF EXECUTIVE OF A NEWLY FORMED UNIT COMP USA INTERNATIONAL MR MORTON SAID COMPUSA IS RESEARCHING THE CANADIAN AND MEXICAN MARKETS BUT DOESN'T PLAN TO ENTER EITHER IN THE IMMEDIATE FUTURE THE COMPANY ALSO DIVIDED ITS US OPERATIONS INTO THREE OPERATING UNITS LAWRENCE N MONDRY 32 WILL BE PRESIDENT OF COMPUSA EAST JACK A PHELPS 43 BECOMES PRESIDENT OF COMPUSA CENTRAL AND PETER J BUSCETTO 45 BECOMES PRESIDENT OF COMPUSA WEST ALL THREE MEN HAD BEEN VICE PRESIDENTS OR SENIOR VICE PRESIDENTS OF THE COMPANY MR MORTON SAID THE STRUCTURAL CHANGES ARE INTENDED TO GET SENIOR MANAGERS OUT IN THE FIELD AND KEEP THEM IN TOUCH WITH THE MARKETPLACE 9305140017 930514 ECONOMY CAR SALES ROSE IN EARLY MAY FROM YEAR AGO RATE FELL FROM LAST 30 DAYS WORRYING AUTO MAKERS ABOUT RECOVERY'S PACE BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF DOMESTICALLY BUILT CARS AND TRUCKS ROSE SHARPLY IN EARLY MAY COMPARED WITH THE WEAK YEARAGO PERIOD HOWEVER THE SELLING PACE EASED FROM THE PREVIOUS 30 DAYS LEAVING AUTO MANUFACTURERS UNSURE ABOUT THE PROSPECT OF A SUSTAINED SALES RECOVERY IN THE NEAR TERM THE BASIC ECONOMY ISN'T EXUBERANT OUT THERE SAID HAROLD A POLING FORD MOTOR CO'S CHAIRMAN AND CHIEF EXECUTIVE THE CONSUMER IS UNCERTAIN OF THE PRESIDENT'S ECONOMIC PROGRAM UNTIL UNCERTAINTY ABOUT THE US ECONOMY DIMINISHES MR POLING SAID CONSUMER CONFIDENCE WILL NOT BE GREAT ENOUGH TO CAUSE A STRONG INCREASE IN SALES THE SEASONALLY ADJUSTED ANNUAL SALES PACE OF USBUILT CARS AND LIGHT TRUCKS WAS 113 MILLION VEHICLES IN THE MAY 110 PERIOD DOWN SLIGHTLY FROM THE 117 MILLION SELLING PACE IN THE PREVIOUS 30DAY PERIOD BUT MUCH HIGHER THAN THE TEPID YEAREARLIER PACE OF 97 MILLION VEHICLES ALTOGETHER AMERICANS BOUGHT 305148 DOMESTIC AND IMPORTED CARS AND LIGHT TRUCKS IN EARLY MAY UP 29 FROM THE 237156 VEHICLES SOLD DURING THE SAME PERIOD A YEAR AGO MR POLING PROJECTED AT FORD'S ANNUAL SHAREHOLDERS' MEETING YESTERDAY THAT THE ANNUAL SELLING PACE OF DOMESTIC AND IMPORT VEHICLES WILL REACH 137 MILLION THIS YEAR HOWEVER VEHICLE SALES WILL HAVE TO SUBSTANTIALLY PICK UP TO REACH THAT PROJECTION IN THE LATEST 10DAY SALES PERIOD GENERAL MOTORS CORP SOLD 120574 DOMESTIC AND IMPORTED CARS AND LIGHT TRUCKS UP 252 FROM 96304 VEHICLES IN THE YEAREARLIER PERIOD THE AUTO MAKER BENEFITED FROM ROBUST SALES OF THE GEO TRACKER SPORTUTILITY VEHICLE CHEVROLET CAVALIER AND CHEVROLET S10 PICKUP ANALYSTS ATTRIBUTED GM'S SALES SPURT TO HEAVILY PROMOTED PRICING DEALS ON SEVERAL MODELS GM'S VALUE PRICING STRATEGY IS REALLY STARTING TO MAKE HEADWAY SAID JACK KIRNAN AUTO ANALYST WITH SALOMON BROTHERS THE MESSAGE OF VALUE AND QUALITY IS GETTING OUT INTO THE MARKET IT'S UNCLEAR HOWEVER WHETHER GM WILL MAINTAIN ITS AGGRESSIVE PRICING STRATEGY THE AUTO MAKER SAID YESTERDAY IT WILL RAISE THE BASE PRICE OF THE REDESIGNED S10 PICKUP BY 104 TO 9655 THE AUTO MAKER SAID THE REDESIGNED S10 COMES WITH MORE STANDARD EQUIPMENT THAN THE PREVIOUS MODEL FORD'S TOTAL CAR AND TRUCK SALES IN EARLY MAY CLIMBED 254 TO 89760 VEHICLES FROM A YEAR EARLIER THE AUTO MAKER'S PERFORMANCE WAS BOLSTERED BY AN 882 JUMP IN PROBE SALES A 372 SURGE IN FSERIES PICKUP SALES AND A 198 GAIN IN ESCORT SALES MEANWHILE CHRYSLER CORP'S VEHICLE SALES WERE UP 498 ACCORDING TO AN ESTIMATE BY WARD'S AUTOMOTIVE REPORTS CHRYSLER DOESN'T RELEASE SALES RESULTS UNTIL THE END OF THE MONTH TOYOTA MOTOR CORP'S SALES CLIMBED 257 IN EARLY MAY TO 18744 VEHICLES HOWEVER HONDA MOTOR CO SAW SALES SLIP 25 TO 13393 CARS 9305140016 930514 TRY THE FLAT TAX BY W KURT HAUSER QUESTION WHAT PERCENTAGE OF GROSS DOMESTIC PRODUCT IS SPENT ON TAX PREPARATION AND COMPLIANCE THIS WEEK AS CONGRESS'S TAXWRITERS CRANK AWAY AT THE NEW TAX PROGRAM THEY MIGHT LIKE TO TAKE A MOMENT TO CONSIDER MORE RADICAL CHANGE THE FEDERAL INCOME TAX CODE TAKES UP MORE THAN 5000 PAGES ACCORDING TO CITIZENS FOR AN ALTERNATIVE TAX SYSTEM THE COST TO THE ECONOMY OF THE CURRENT TAX SYSTEM IS SIX BILLION HOURS AND 600 BILLION TO 1 TRILLION ANNUALLY SIX HUNDRED BILLION DOLLARS IS 10 OF THE GDP OF 6 TRILLION BY COMPARISON THE FEDERAL BUDGET DEFICIT IN FISCAL 1992 WAS 290 BILLION OR 48 OF GDP H&R BLOCK ALONE RECORDED REVENUE FOR INDIVIDUAL TAX RETURN PREPARATION LAST YEAR OF ABOUT 700 MILLION REPRESENTING ONLY 12 OF ALL INDIVIDUAL TAX RETURNS THE CLINTON ADMINISTRATION DID MAKE A GESTURE TOWARD THINKING ABOUT FUNDAMENTAL TAX REFORM BUT ITS TRIAL BALLOON A VALUEADDED TAX APPEARS TO HAVE POPPED IN SENDING IT UP THE ADMINISTRATION INDICATED AN OPEN MIND TO TAX INNOVATION OPEN ENOUGH PERHAPS THAT THE ADMINISTRATION WILL TAKE A LOOK AT ANOTHER OLD IDEA THE FLAT TAX THE DEFINITIVE WORK ON THE SUBJECT WAS PUBLISHED IN 1983 BY HOOVER INSTITUTION SCHOLARS ROBERT HALL AND ALVIN RABUSHKA THEIR STUDY LOW TAX SIMPLE TAX FLAT TAX INDICATES THAT A FLAT TAX RATE OF 19 ON WAGES SALARIES PENSIONS AND BUSINESS INCOME WOULD MATCH THE 1983 FEDERAL INCOME TAX COLLECTIONS FOR INDIVIDUALS THE HALLRABUSHKA PLAN ALLOWS ONLY A STANDARD DEDUCTION BY FILER MARRIED SINGLE HEAD OF HOUSEHOLD AND FOR DEPENDENTS MORTGAGE INTEREST CHARITABLE GIFTS AND OTHER DEDUCTIONS UNDER THE TAX CODE WOULD NOT BE ALLOWED BUSINESS INCOME WOULD INCLUDE ALL INCOME OTHER THAN WAGES SALARIES AND PENSIONS REPORTED ON THE INDIVIDUAL RETURNS BUSINESS DEDUCTIONS WOULD INCLUDE THE COST OF ALL GOODS SERVICES WAGES SALARIES PENSIONS AND CAPITAL EXPENDITURES IN THE YEAR INCURRED INTEREST AND DIVIDENDS WOULD BE NEITHER EXPENSED BY BUSINESS NOR DECLARED AS INCOME BY RECIPIENTS THIS MODEL IS STATIC IN THAT IT ASSUMES NO BEHAVIORAL CHANGE RESULTING FROM THE INCENTIVES UNLEASHED BY A LOWERING OF TAX RATES AND THE REDEPLOYMENT OF CAPITAL TO PRODUCTIVE INVESTMENT INDEPENDENT THINK TANKS CAN DETERMINE THE APPROPRIATE FLAT TAX RATE AND PERHAPS ITS INTEGRATION WITH SOCIAL SECURITY AND MEDICARE TAXES USING BOTH STATIC AND DYNAMIC MODELS UNDER A DYNAMIC MODEL THAT ATTRIBUTES BEHAVIORAL RESPONSE TO THE INCREASED INCENTIVES OF A FLAT TAX GDP AND REVENUES WOULD ACCELERATE CRITICS OF THE FLAT TAX CONTEND THAT IT IS REGRESSIVE THAT IT WILL FAVOR THE WEALTHY PENALIZE THE POOR AND WILL NOT BROADEN THE TAX BASE A REGRESSIVE TAX SYSTEM PLACES A HIGHER RATE OF TAXATION AS A PERCENTAGE OF TOTAL INCOME ON LOWER INCOMES RELATIVE TO HIGHER INCOMES A PROGRESSIVE TAX STRUCTURE PLACES A HIGHER RATE OF TAXATION AS A PERCENTAGE OF TOTAL INCOME ON HIGHER INCOMES RELATIVE TO LOWER INCOMES THIS CRITICISM APPEARS UNFOUNDED THE STANDARD DEDUCTION ADDS PROGRESSIVITY TO THE TAX SYSTEM WHILE ELIMINATING PROGRESSIVELY HIGHER MARGINAL TAX RATES UNDER A FLAT TAX WITH A STANDARD DEDUCTION THE UPPERINCOME GROUPS WILL BE PAYING A PROGRESSIVELY HIGHER FRACTION OF THEIR INCOMES IN TAXES THAN LOWERINCOME GROUPS THE WEALTHY WOULD HAVE NO DEDUCTIONS FOR THE VARIOUS TAX SHELTERS NOW EMPLOYED THE WEALTHY WOULD ALSO HAVE MORE INCOME SUBJECT TO TAXATION THE THRESHOLD FOR TAXATION WOULD EXCLUDE THE POOR WITH FAMILY INCOMES OF LESS THAN A CERTAIN AMOUNT PERHAPS 14000 TO 17000 AND THE THRESHOLD WOULD BE INDEXED TO INFLATION THE ACCOMPANYING CHART ASSUMES A 20 FLAT TAX AND 16000 STANDARD DEDUCTION AS CAN BE SEEN THIS FLAT TAX IS PROGRESSIVE IN THE 1980S THE US MOVED TOWARD A FLAT TAX THE MARGINAL PERSONAL INCOME TAX RATE FELL TO 28 IN 1988 FROM 70 IN 1981 WHILE CORPORATE RATES FELL TO 34 FROM 46 DEDUCTIONS WERE REDUCED OR ELIMINATED FOR VARIOUS TAX SHELTERS INCLUDING REALESTATE PASSIVE LOSSES SALES TAXES AND NONMORTGAGE INTEREST FEDERAL TAX RECEIPTS GREW TO 9907 BILLION IN 1989 FROM 5993 BILLION IN 1981 INDIVIDUAL INCOME TAXES GREW TO 446 BILLION FROM 286 BILLION SINCE TAX RECEIPTS AS A PERCENTAGE OF GDP REMAINED WITHIN THE 195 RANGE ONE HAS TO CONCLUDE THAT THE LOWER TAX RATES STIMULATED ECONOMIC GROWTH AND BROADENED THE TAX BASE INDEED BETWEEN 1981 AND 1989 ABOUT 17 MILLION NEW JOBS WERE CREATED THE COUNTRY EXPERIENCED ITS LONGEST PEACETIME EXPANSION INTEREST RATES AND INFLATION RATES FELL AND TAX RECEIPTS INCREASED BY ROUGHLY 400 BILLION ACCORDING TO JUDE WANNISKI THE TOP 1 OF US INDIVIDUAL TAXPAYERS REPRESENTED 27 OF ALL INCOME TAX COLLECTIONS IN 1989 COMPARED WITH 18 IN 1981 IN 1990 THE TREND TOWARD A FLAT TAX WAS REVERSED AS MARGINAL TAX RATES WERE RAISED SINCE 1990 THE ECONOMY HAS STALLED AND JOB CREATION HAS SLOWED THE ADMINISTRATION'S BUDGET PROPOSAL WILL RAISE MARGINAL TAX RATES FURTHER AND ADD MORE COMPLEXITY TO THE TAX CODE RECEIPTS AS A FRACTION OF GDP WILL NOT APPRECIABLY CHANGE FROM THE HISTORIC 195 BUT GDP WILL BE LOWER THAN HAD THERE BEEN NO INCREASE IN RATES GOVERNMENT REVENUE COLLECTIONS WILL DECLINE AND MANY OF THE PROGRAMS PROPOSED FOR IMPROVED QUALITY OF LIFE WILL BE ABANDONED ALL ECONOMIC THEORIES AGREE THAT LOWERING TAXES STIMULATES ECONOMIC ACTIVITY WHILE RAISING TAXES DAMPENS IT A FLAT TAX WOULD GREATLY SIMPLIFY THE TAX CODE MESSRS HALL AND RABUSHKA ENVISION A POSTCARDSIZE TAX FORM THAT WOULD ELIMINATE THE COST AND TIME NOW DIRECTED TO COMPLYING WITH IRS TAX CODES A FLAT TAX WOULD REDIRECT CAPITAL AND LABOR RESOURCES TO PRODUCTIVE FROM NONPRODUCTIVE INVESTMENT IT WOULD BROADEN THE TAX BASE BY CURTAILING THE INCENTIVE FOR AN UNDERGROUND ECONOMY REDUCING TAX EVASION AVOIDANCE AND UNDERREPORTING IT WOULD PROVIDE A STIMULUS TO WORK PRODUCE INVEST AND SAVE THEREBY PROMOTING OVERALL ECONOMIC GROWTH JOB CREATION AND GOVERNMENT REVENUES THE FLAT TAX RATE OF 19 OR 20 WOULD BE CONSISTENT WITH THE POSTWAR PERCENTAGE OF GDP REPRESENTED BY GOVERNMENT TAX RECEIPTS MR HAUSER IS PRESIDENT OF AN INVESTMENT COUNSEL FIRM IN SAN FRANCISCO AND A MEMBER OF THE BOARD OF OVERSEERS OF THE HOOVER INSTITUTION 9305140015 930514 WHO'S NEWS INTERNEURON PHARMACEUTICALS INC INTERNEURON PHARMACEUTICALS INC LEXINGTON MASS GLENN L COOPER WAS NAMED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR DR COOPER 40 YEARS OLD SUCCEEDS CHARLES J CASAMENTO 47 WHO RESIGNED TO PURSUE OTHER INTERESTS INTERNEURON SAID DR COOPER WILL CONTINUE TO SERVE AS PRESIDENT AND CHIEF EXECUTIVE OF PROGENITOR INC A UNIT OF INTERNEURON A DEVELOPER OF PHARMACEUTICAL PRODUCTS 9305140014 930514 CANADA TO AUCTION BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION ON WEDNESDAY 18 BILLION CANADIAN DOLLARS US14 BILLION OF 65 BONDS DUE SEPT 1 1998 PROCEEDS WILL BE USED TO REDEEM C895 MILLION OF GOVERNMENT BONDS MATURING JUNE 1 AND FOR GENERAL GOVERNMENT PURPOSES 9305140013 930514 WHO'S NEWS FINGERHUT COS FINGERHUT COS MINNEAPOLIS RICHARD M KOVACEVICH PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NORWEST CORP WAS NAMED A DIRECTOR OF THIS CATALOG MARKETING CONCERN FILLING A VACANCY 9305140012 930514 MARKETING & MEDIA CAPITAL CITIES/ABC TO POST HIGHER LOSSES IN '93 PRETAX SPENDING NEW YORK CAPITAL CITIES/ABC INC CHIEF EXECUTIVE OFFICER DANIEL BURKE SAID PRETAX INVESTMENT SPENDING LOSSES WILL INCREASE IN 1993 BECAUSE OF THE COMPANY'S PLANS FOR GLOBAL EXPANSION THE 1993 PRETAX INVESTMENT SPENDING LOSSES WILL BE ABOUT 20 HIGHER THAN THE 57 MILLION IN LOSSES INCURRED IN 1992 MR BURKE SAID SPEAKING AT THE COMPANY'S ANNUAL MEETING OF SHAREHOLDERS IN FORT WORTH TEXAS MR BURKE SAID THE COMPANY INTENDS TO BE A PLAYER OF CONSEQUENCE IN THE GLOBAL MARKETPLACE AND THAT IT IS NOW TAKING ADVANTAGE OF A BRIEFLY OPEN WINDOW OF OVERSEAS OPPORTUNITY AS MANY COUNTRIES CONVERT FROM STATEOWNED TO COMMERCIAL TELEVISION MR BURKE CITED TWO KEY OBJECTIVES FOR THE COMPANY IN THE FUTURE EXPANDED TELEVISION PROGRAM PRODUCTION AND OWNERSHIP WHICH WILL ALLOW THE COMPANY TO BE MORE SELFRELIANT AND INVESTMENT IN NEW BUSINESS OPPORTUNITIES THE COMPANY CAN AFFORD TO FUND THE INVESTMENTS MR BURKE SAID BECAUSE OF WHAT HE CALLED THE HEALTH OF OUR ONGOING OPERATIONS PARTICULARLY AT THE ABC TELEVISION NETWORK THE RADIO DIVISION HE SAID COMING OFF AN IMPROVED FIRST QUARTER IS EXPLORING BUYING MORE STATIONS AS ALLOWED BY RECENT CHANGES IN FEDERAL REGULATIONS THE TELEVISION STATION GROUP CONTINUES TO FACE A DIFFICULT MARKETPLACE MR BURKE SAID AND CORE EARNINGS GROWTH AT CABLE SPORTS NETWORK ESPN WILL BE LARGELY OFFSET BY LOSSES FROM THE FINAL SEASON OF THE COMPANY'S MAJOR LEAGUE BASEBALL PACKAGE AND THE LAUNCH OF ESPN II AS FOR PUBLISHING MR BURKE SAID INVESTMENT IN STARTUP BUSINESSES WILL TRIPLE IN 1993 AND HAVE AN IMPACT ON EARNINGS FOR THE YEAR 9305140011 930514 CORPORATE FOCUS PEPSICO'S TACO BELL UNIT MAPS FURTHER DIVERSIFICATION ITS ULTIMATE GOAL IS 300 FULLSERVICE MEXICANSTYLE RESTAURANTS BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL TACO BELL CORP CONTRARY TO POPULAR BELIEF ISN'T A CHAIN OF EATERIES IF YOU DON'T BELIEVE IT JUST ASK THE COMPANY'S PRESIDENT JOHN MARTIN WE'RE NOT IN THE RESTAURANT BUSINESS HE INSISTS WE'RE MUCH MORE OF A RETAILER ONE THAT'S IN THE BUSINESS OF FEEDING PEOPLE AS SUCH MR MARTIN ADDS TACO BELL WILL GO WHERE THE HUNGRY PEOPLE ARE FOR TACO BELL THAT HAS MEANT EXPANDING BEYOND THE TRADITIONAL IMAGE OF A FASTFOOD COMPANY FIRST CAME A MOVE INTO CARTS AND KIOSKS IN SUPERMARKETS AIRPORTS AND SCHOOLS THEN CAME A JOINT VENTURE WITH ITS PEPSICO INC SIBLING FRITOLAY INC TO PRODUCE A LINE OF PREPACKAGED MEXICANSTYLE FOOD FOR GROCERY STORES NOW THE IRVINE CALIF COMPANY WHICH MADE ITS FORTUNE SELLING AN INEXPENSIVE LIMITED MENU OF TACOS AND BURRITOS IS HEADING IN YET ANOTHER DIRECTION OPENING 300 FULLSERVICE MEXICANSTYLE RESTAURANTS WITHIN THE NEXT FIVE YEARS THE NAME AND SPECIFIC MENU ITEMS HAVEN'T BEEN CHOSEN BUT THE VENTURE PREDICTS MR MARTIN WILL GENERATE 1 BILLION IN SALES ANNUALLY OTHERWISE HE SAYS IT'S NOT WORTH DOING LAST YEAR TACO BELL HAD SYSTEMWIDE SALES OF 328 BILLION TACO BELL'S MANEUVERS HIGHLIGHT HOW DIFFERENT PLAYERS IN DIFFERENT PARTS OF THE FOOD INDUSTRY ARE PUSHING THE BOUNDARIES OF WHAT A FASTFOOD CHAIN OR A SUPERMARKET OR A FOOD MANUFACTURER CAN BE WHILE SOME FASTFOOD OUTLETS FOR INSTANCE ARE STILL FOCUSING ON VALUE PRICING OR DEVELOPING NEW MENU ITEMS TACO BELL UNO RESTAURANT CORP'S PIZZERIA UNO UNIT AND OTHERS ARE ALREADY MOVING THEIR OFFERINGS ONTO GROCERY STORE SHELVES AT THE SAME TIME SOME SUPERMARKETS BY STOCKING AISLES WITH FOODS AND MEALS PREPARED ON SITE ARE CREEPING INTO A TERRITORY ONCE RESERVED FOR FASTFOOD OUTLETS THERE'S BEEN A LOT OF BLURRING IN THE INDUSTRY SAYS HAL SIELING A RESTAURANT CONSULTANT IN CARLSBAD CALIF MANY COMPANIES ARE LOOKING AT NEW OPPORTUNITIES FOR DISTRIBUTION THE FACT THAT TACO BELL IS DOING IT MEANS THAT THIS WAY OF DOING BUSINESS HAS REALLY ARRIVED ALTHOUGH IT'S UNCERTAIN WHETHER OTHER FASTFOOD CHAINS WILL FOLLOW TACO BELL'S LEAD THE COMPANY DOES HAVE A WAY OF TURNING FORMERLY UNORTHODOX IDEAS LIKE VALUE PRICING NOW PRACTICED BY MANY RIVALS INTO MAINSTREAM CONCEPTS MR MARTIN'S MOVES SAY INDUSTRY EXECUTIVES AND OBSERVERS COULD PROMPT COMPETITORS TO STRENGTHEN OR ESTABLISH A PRESENCE OUTSIDE THEIR RESTAURANT WALLS INDEED THERE IS A GROWING URGENCY AMONG SOME RESTAURANT OPERATORS SAYS JOSEPH MICATROTTO PRESIDENT OF CHICHI'S RESTAURANTS TO GRAB SPACE ON SUPERMARKET SHELVES CHICHI'S ALREADY HAS A LINE OF MEXICAN FOOD PRODUCTS IN SUPERMARKETS BUT THERE IS A MENTALITY AMONG RIVALS OF IF WE DON'T GET IN THERE AND ESTABLISH OUR OWN PRODUCT LINE THEN SOMEONE ELSE WILL MR MICATROTTO SAYS TACO BELL'S MOVE INTO GROCERY STORES IF SUCCESSFUL WILL ALSO POSE A THREAT TO FOOD MANUFACTURERS WHICH COULD FIND THEIR BRANDS IN THE UNUSUAL POSITION OF LOSING MARKET SHARE TO A FASTFOOD COMPANY FOR A COMPANY LIKE TACO BELL EACH AND EVERY RESTAURANT KIOSK AND GROCERYSTORE PRODUCT BECOMES A BILLBOARD SAYS RON PAUL HEAD OF TECHNOMIC INC A RESTAURANT CONSULTING GROUP IT'S A REMINDER A REINFORCEMENT THAT CAN BECOME A COMPETITIVE ADVANTAGE WHILE MOST INDUSTRY ANALYSTS SAY TACO BELL'S MOVES MAKE SENSE A FEW QUESTION HOW SMOOTH THE TRANSITION WILL BE FROM FASTFOOD CONCERN TO MULTITIERED FOOD RETAILER PARTICULARLY THE EFFORT TO DEVELOP A FULLSERVICE RESTAURANT DIVISION ALTHOUGH TACO BELL IS KNOWN FOR ITS EFFICIENCY AND SPEED ADDITIONAL SKILLS WILL BE REQUIRED TO BE SUCCESSFUL IN FULLSERVICE SAYS MR MICATROTTO OF CHICHI'S OPENING 300 RESTAURANTS HE SAYS WILL BE EASY ENOUGH FOR A CHAIN THAT IS PART OF THE PEPSICO CORPORATE FAMILY BUT FINETUNING THE CONCEPT AND DEVELOPING THE LEVEL OF CONSISTENT CUSTOMER SERVICE REQUIRED IN FULLSERVICE RESTAURANTS COULD POSE A MUCH GREATER CHALLENGE THE SERVICE RENDERED IN FULLSERVICE RESTAURANTS IS A TOTAL INTEGRATION OF EMPLOYEE AND GUEST MR MICATROTTO SAYS IN FAST FOOD YOU ALWAYS HAVE THE STAINLESSSTEEL DIVIDE IN FULLSERVICE RESTAURANTS HE ADDS THE DINING CONCEPT AND FOOD ARE EQUALLY IMPORTANT IN FAST FOOD THE LOCATION IS MORE IMPORTANT THAN ANYTHING ONE ADVANTAGE TACO BELL HAS IS THE GROWING POPULARITY OF ETHNIC CUISINE IN THE US THE NUMBER OF MEXICANSTYLE RESTAURANTS INCREASED ALMOST 5 LAST YEAR WHILE THE TOTAL NUMBER OF RESTAURANTS SHRANK ACCORDING TO RESTAURANT CONSULTING GROUP IN EVANSTON ILL MEXICAN FOOD ACCOUNTED FOR 64 OF ALL RESTAURANT ORDERS IN THE US LAST YEAR UP FROM 38 IN 1986 ACCORDING TO NPD GROUP AN ILLINOIS CONSULTING FIRM THAT TRACKS AMERICANS' EATING HABITS TACO BELL WITH ALMOST 4000 RESTAURANTS IN THE US DOMINATES THE MEXICAN FASTFOOD SEGMENT BUT THE FULLSERVICE MEXICAN CATEGORY REMAINS AN OPEN MARKET WITH NO DOMINANT NATIONAL PLAYER ACCORDING TO INDUSTRY OBSERVERS THE TWO LARGEST CHAINS ARE CHICHI'S A DIVISION OF FOODMAKER INC IN SAN DIEGO WITH 236 RESTAURANTS AND EL TORITO A DIVISION OF RESTAURANT ENTERPRISES GROUP INC IN IRVINE CALIF WITH 124 UNITS THERE'S A LOT OF DISARRAY IN THE FULLSERVICE MEXICAN CATEGORY AND ANOTHER COMPANY THAT COULD COME IN LIKE GENERAL MILLS HASN'T SAYS MR SIELING THE RESTAURANT CONSULTANT TACO BELL EXECUTIVES HE SAYS HAVE WATCHED THE SUCCESS GENERAL MILLS INC HAS ENJOYED WITH ITS OLIVE GARDEN ITALIAN RESTAURANTS AND HOPES TO STAVE OFF ANY SIMILAR COMPETITIVE THREAT IN THE MEXICAN CATEGORY OLIVE GARDEN A CHAIN OF MODERATELY PRICED FULLSERVICE RESTAURANTS STARTED WITH FOUR OUTLETS IN 1985 TODAY THERE ARE 398 ACROSS THE COUNTRY THIS WON'T BE TACO BELL'S FIRST FORAY INTO THE FULLSERVICE MARKET IN 1991 THE COMPANY OPENED THE SALSA RIO GRILL IN LOS ANGELES BUT THE MIDPRICED CASUALTHEME MEXICAN RESTAURANT CLOSED AFTER ONLY 18 MONTHS COMPANY OFFICIALS SAY THE CONCEPT WAS SOUND THE PROBLEM THEY SAY WAS THE FACT THAT THE RESTAURANT WAS IN A POORLY PERFORMING SHOPPING MALL TIM RYAN TACO BELL'S FORMER VICE PRESIDENT OF MARKETING WHO NOW HEADS THE NEW FULLSERVICE DINING DIVISION IS STILL DESIGNING A ROAD MAP FOR THE CONCEPT SAYS MR MARTIN TACO BELL ACCORDING TO MR MARTIN WILL PROBABLY BUY EXISTING RESTAURANT PROPERTIES AND REMODEL THEM TO MEET THE COMPANY'S FIVEYEAR GOAL WHILE EL TORITO HAS BEEN MENTIONED AMONG INDUSTRY OBSERVERS AS A POSSIBLE TARGET MR MARTIN PLAYS DOWN THE IDEA EL TORITO MAY NOT BE SOMETHING WE WANT TO BE INVOLVED IN HE SAYS BECAUSE MANY OF THEIR RESTAURANTS HAVE MORE SQUARE FOOTAGE THAN TACO BELL DESIRES ANY TALK OR SPECULATION ON OTHER SMALL CHAINS OR OPERATORS THAT COULD BE TAPPED EITHER FOR LOCATIONS OR MEXICAN FOOD DINING CONCEPTS IS PREMATURE MR MARTIN ADDS SAYING WE'RE GOING TO WANT TO BUY SOMETHING THAT CAN BE TAILORED FOR REGIONAL DIFFERENCES 9305140010 930514 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED MAY 7 ACCOUNTED FOR 84 OR AN AVERAGE 208 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL FOUR 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 416 INVOLVED STOCKINDEX ARBITRAGE UP FROM 317 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 464 OF PROGRAM TRADING WAS FOR CUSTOMERS WHILE 456 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 8 WAS EXECUTED BY FIRMS' USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COOPER NEFF NOMURA SECURITIES AND UBS SECURITIES DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND MERRILL LYNCH DID ALL OR MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9305140009 930514 FOREIGN EXCHANGE DOLLAR ENDS MOSTLY FIRMER AS SPOTLIGHT TURNS TO DEVALUATION BY SPAIN PORTUGAL BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CURRENCY MARKETS FOCUSED ON EUROPE WITH DEVALUATIONS OF THE SPANISH PESETA AND PORTUGUESE ESCUDO KEEPING THE DOLLAR OUT OF THE SPOTLIGHT THE US CURRENCY ENDED MOSTLY FIRMER AIDED BY US APRIL RETAIL SALES AND CONSUMER PRICE INCREASES THAT WERE SOMEWHAT LARGER THAN EXPECTED THE REPORTS FED MARKET SENTIMENT THAT US INTEREST RATES AREN'T LIKELY TO FALL SOON TRADERS SAID ABOUT MIDDAY IN TOKYO FRIDAY THE DOLLAR WAS TRADING AT 11218 YEN AND AT 16155 MARKS IN YESTERDAY'S CENTRAL MARKET DEVELOPMENT THE PESETA AND ESCUDO WERE DEVALUED 8 AND 65 RESPECTIVELY WITHIN EUROPE'S EXCHANGERATE MECHANISM OR ERM EUROPEAN MONETARY AUTHORITIES FINALLY YIELDED TO MARKET OPINION THAT THE FORMER EXCHANGE LEVELS WERE UNSUSTAINABLE SAID WILLIAM ARNOLD CHIEF DEALER AT CHEMICAL BANK THE PESETA AND TO A LESSER EXTENT THE ESCUDO HAD BEEN UNDER PRESSURE FOR SEVERAL WEEKS ON PERCEPTIONS THEY WERE OVERVALUED RELATIVE TO THE WEAK ECONOMIC FUNDAMENTALS OF THE TWO NATIONS TRADERS SAID IT WAS WIDELY BELIEVED THE SPANISH GOVERNMENT WOULDN'T BE WILLING TO RISK FURTHER DAMAGE TO THE ALREADY STRUGGLING NATIONAL ECONOMY BY INDEFINITELY MAINTAINING THE HIGH INTEREST RATES REQUIRED TO DEFEND THE PESETA'S POSITION IN THE ERM TRADERS ADDED INDEED FOLLOWING THE DEVALUATION SPAIN SAID IT WOULD CUT ITS BENCHMARK INTEREST RATE TO 115 FROM 13 ALTHOUGH EXPECTATIONS OF A DEVALUATION HAD BEEN MOUNTING FOR WEEKS THE BANK OF SPAIN'S DECISION TO REQUEST A REALIGNMENT YESTERDAY CAUGHT THE MARKET OFF GUARD SAID JOHN NELSON DIRECTOR OF FOREIGN EXCHANGE AT BARCLAYS BANK PLC MANY PARTICIPANTS HAD THOUGHT A DEVALUATION WOULDN'T COME BEFORE SPANISH PARLIAMENTARY ELECTIONS ON JUNE 6 THE DECISION TO ACT WAS FORCED BY THE RAPID DEPLETION OF SPAIN'S FOREIGNEXCHANGE RESERVES WE DON'T BELIEVE THAT WE SHOULD CONTINUE LOSING FOREIGNCURRENCY RESERVES AT THE PACE AT WHICH WE WOULD HAVE HAD TO USE THEM TO SUPPORT THE PESETA SAID NARCIS SERRA DEPUTY PRIME MINISTER THE BANK OF SPAIN HAD INTERVENED REPEATEDLY IN THE FOREIGNEXCHANGE MARKET IN RECENT WEEKS ATTEMPTING TO BUOY THE PESETA BY BUYING PESETAS FOR MARKS BECAUSE OF THE CLOSE ECONOMIC LINKS BETWEEN PORTUGAL AND SPAIN SPAIN IS ITS NEIGHBOR'S LARGEST TRADING PARTNER PORTUGAL HAD TO ACCEPT DEVALUATION AS WELL OR FACE THE CONSEQUENCES OF SPANISH GOODS THAT SUDDENLY WOULD BE MUCH MORE COMPETITIVE SAID JACK O'MELIA CHIEF DEALER AT BANCO ESPANOL DE CREDITO LATE YESTERDAY IN NEW YORK THE PESETA TRADED AT 7640 PESETAS PER MARK COMPARED WITH 7363 PESETAS PER MARK LATE WEDNESDAY LATE YESTERDAY IN NEW YORK THE ESCUDO TRADED AT 96 ESCUDOS PER MARK COMPARED WITH 93 ESCUDOS THE DAY BEFORE IN DOLLAR TRADING THE US CURRENCY'S GENERALLY FIRMER TONE STEMMED FROM CONTINUING PERCEPTIONS THAT US INTEREST RATES ARE LIKELY TO HOLD OR RISE IN THE NEAR TERM WHILE EUROPEAN INTEREST RATES ARE HEADED LOWER BARCLAYS' MR NELSON SAID RISING INTEREST RATES TEND TO MAKE A CURRENCY MORE ATTRACTIVE TO INVESTORS TRADERS NOTED 9305140008 930514 SCANDAL CHANNEL HOME SHOPPING SAGA FROM DAZZLE OF SUCCESS TO GLARE OF SCRUTINY LOOSE OPERATING METHODS PERVADED NETWORK BUILT BY ARDENT ENTREPRENEUR SIDE DEALS WITH SUPPLIERS BY JOHNNIE L ROBERTS AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL ST PETERSBURG FLA BEFORE HE BECAME A WEALTHY PIONEER OF A SOARING NEW INDUSTRY HOME SHOPPING NETWORK CHAIRMAN ROY SPEER WAS MANY OTHER THINGS HE WAS A LAWYER A DEVELOPER A NIGHTCLUB OWNER A MAYORAL CANDIDATE A BOAT DEALER A BEAUTYSCHOOL PROPRIETOR AN OIL MAN AND AN ABSENTEE OWNER OF A HURRICANERAVAGED VEGETABLE FARM IN PUERTO RICO ALWAYS HE SHOWED HUGE ENTREPRENEURIAL ZEST A ROUGH EDGE AND A RECKLESS BENT WEEKS AFTER JOINING A LAW FIRM AS A YOUNG ASSOCIATE IN THE 1960S HE BANGED HIMSELF UP IN A CAR ACCIDENT IN A HIGHSPEED ATTEMPT TO ELUDE A PATROLMAN THROUGH THICK FOG NOW IT APPEARS MR SPEER HAS STEERED HOME SHOPPING NETWORK ON A COLLISION COURSE OF ITS OWN HE IS AT THE CENTER OF A SWIRL OF ALLEGATIONS THAT THE COMPANY OR SOME OF ITS TOP EXECUTIVES TOOK COMMERCIAL BRIBES HELD SECRET INVESTMENTS IN SUPPLIERS MADE HUSHMONEY PAYMENTS FIRED WOULDBE WHISTLEBLOWERS AND MAYBE EVEN HAD MOB TIES THE ALLEGATIONS HAVE BUBBLED UP IN A FLOOD OF LAWSUITS FILED IN THE PAST SIX MONTHS BY SHAREHOLDERS VENDORS FORMER EXECUTIVES AND THE EXWIFE OF A FORMER GENERAL COUNSEL A FEDERAL GRAND JURY IN TAMPA IS ISSUING SUBPOENAS THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING AND MR SPEER HAS SAID THE INTERNAL REVENUE SERVICE IS AUDITING HIS TAX RETURNS AN ASSOCIATE SAYS MANY OF THE ALLEGATIONS FOCUS ON HOME SHOPPING'S SPRAWLING PURCHASING DEPARTMENT AND HOW IT DID BUSINESS WITH SOME OF MR SPEER'S CLOSE ASSOCIATES INCLUDING HIS SON RICHARD THE SON HIMSELF OVERSAW THE DEPARTMENT AS IT CHURNED THROUGH HALF A BILLION DOLLARS A YEAR IN ORDERS EARLIER THIS YEAR HE WAS FIRED BY HOME SHOPPING'S NEW CONTROLLING OWNER LIBERTY MEDIA CORP BOTH SPEERS HAVE DENIED DOING ANYTHING WRONG AND THEY DECLINED TO BE INTERVIEWED FOR THIS ARTICLE LATE YESTERDAY HOME SHOPPING SAID IT HAD FORMED AN AUDIT COMMITTEE TO REVIEW EVERY VENDOR RELATIONSHIP TO FERRET OUT ANY POSSIBLE CONFLICTS THAT MAY EXIST THE SWELLING SCANDAL HAS ALREADY HAD A LARGE IMPACT AT HOME SHOPPING NETWORK IT HAS BATTERED THE STOCK IT HAS SIDETRACKED A 640 MILLION OFFER FROM LIBERTY TO ACQUIRE THE REST OF THE COMPANY AND IT HAS DAMAGED THE CREDIBILITY OF A SURGING NEW RETAILING FORM JUST WHEN IT WAS BEGINNING TO MOVE UPSCALE THE STORY IS FAR FROM OVER BUT ALREADY THE SEQUENCE OF EVENTS AT HOME SHOPPING NETWORK IS SHAPING UP AS A CLASSIC IN ROUGHHEWN AMERICAN CAPITALISM A BURST OF RAW ENTREPRENEURIAL ENERGY AN OVERNIGHT STOCKMARKET SENSATION A GLAMOURTINGED INDUSTRYOFTHEFUTURE AN APPARENT CASHINGIN BY EXECUTIVES ON THEIR ABRUPT GOOD FORTUNE AND NOW SUDDENLY THE HARSH GLARE OF INTENSIFYING LEGAL SCRUTINY HERE IS HOW THE STORY HAS UNFOLDED SO FAR FOR ROY SPEER A MAN WHOSE MANY PAST BUSINESS VENTURES INCLUDE GOING BANKRUPT IN OIL AND GAS AND GETTING TAKEN FOR ALMOST 1 MILLION IN A BOGUS ARBITRAGE FUND LUCK CHANGED WHEN HE MET A VETERAN BROADCASTER NAMED LOWELL BUD PAXSON THE TWO TEAMED UP IN 1978 TO BUY AN AILING RADIO STATION IN CLEARWATER FLA MR PAXSON HAD LONG HAD THE IDEA OF TWINNING THE TWO AMERICAN PASSIONS OF SHOPPING AND TV WATCHING AND SOON THE STATION WAS PEDDLING ELECTRIC CAN OPENERS REPORTEDLY LEFT TO IT BY AN INSOLVENT ADVERTISER AND SIMILAR CHEAP GADGETS WITH A SHOW CALLED SUNCOAST BARGAINEERS A HIT ON RADIO IT SOON MOVED TO LOCAL CABLE TV WHERE A HOST PART CARNIVAL BARKER AND PART USEDCAR SALESMAN HAWKED DISCOUNT GOODS THAT VIEWERS ORDERED BY PHONE AND THEN PICKED UP AT A WAREHOUSE IT WAS A LITTLE HOKEY BUT THE AREA'S ELDERLY RETIREES LOVED IT AND IN 1985 IT WENT NATIONAL BEAMING THE HOME SHOPPING CLUB TO NOOKANDCRANNY CABLE SYSTEMS ROUND THE CLOCK TO LATCH ONTO VIEWERS AND THEIR CREDIT CARDS IN MAY 1986 IT WENT PUBLIC ON ITS FIRST DAY THE STOCK OPENED AT 18 AND CLOSED AT 42 BY JANUARY ONE SHARE HAD TURNED INTO SIX WORTH 280 OUT OF NOWHERE HOME SHOPPING NETWORK HAD A MARKET VALUE OF MORE THAN 4 BILLION MORE THAN THE VENERABLE CBS INC MR SPEER WAS A BILLIONAIRE AND MR PAXSON NEARLY SO MR SPEER SOON ECLIPSED MR PAXSON WHO HAD THE TITLE OF PRESIDENT AND BEGAN RUNNING HOME SHOPPING AUTOCRATICALLY AS HE DID SO HE LINKED HOME SHOPPING NETWORK UP WITH A CAST OF CHARACTERS NOW CENTRAL TO THE PROLIFERATING ALLEGATIONS THEY INCLUDE FRANCIS R FRANNIE SANTANGELO A WALL STREET FRIEND WHO AFTER HELPING HOME SHOPPING GO PUBLIC BY MAKING A MARKET IN THE STOCK WENT ON TO RECORD MILLIONS IN CONSULTING FEES AND ORDERS FROM THE COMPANY SETTING UP BUSINESSES EXPRESSLY TO SELL IT GOODS A FEDERAL COURT IN PHILADELPHIA HAS RULED THAT ONE SUCH HAD DEFRAUDED A FACTORING COMPANY FERNANDO DIFILIPPO WHO QUIT AS HOME SHOPPING GENERAL COUNSEL IN 1990 AFTER A FIERY FALLING OUT WITH HIS LONGTIME FRIEND MR SPEER TAKING ALONG A PAYMENT OF 14 MILLION IN STOCK IN A TANGLED DIVORCE CASE A FEW MONTHS AGO HIS WIFE ALLEGED THAT THE 14 MILLION WAS HUSH MONEY PAID TO SHUT MR DIFILIPPO UP ABOUT WHAT WENT ON AT THE COMPANY ALLEN P ALLWEISS A FORMER FLORIDA PROSECUTOR WHO CLAIMS TO HAVE SENT 20 MEN TO DEATH ROW AND WAS ONCE SHOT FOUR TIMES BY A DISGRUNTLED COMPLAINANT AS SENIOR VICE PRESIDENT AT HOME SHOPPING HE FIRED EMPLOYEES WITH RELISH ACQUIRING THE NICKNAME THE RAZOR HE IS THE KIND OF GUY YOU JUST CAN'T LIKE SAYS ROBERT T SUTTON HOME SHOPPING PRESIDENT AND A DIRECTOR IN 199192 HE IS HAPPY WHEN HE HURTS PEOPLE HE IS JUST A DETESTABLE HUMAN BEING WHEN MR ALLWEISS HAD A FALLING OUT WITH MR SPEER AND WAS FIRED EARLIER THIS YEAR HE SUED IN STATE COURT IN PINELLAS COUNTY FLA ALLEGING THE COMPANY FIRED HIM TO KEEP HIM QUIET HE ALSO ASSERTED THAT WHEN HE THREATENED TO DISCLOSE FINANCIAL CHICANERY MR SANTANGELO TOLD SOMEONE HE WOULD BURY MR ALLWEISS HE TOOK THIS SERIOUSLY BECAUSE MR ALLWEISS SAID IN HIS SUIT MR SANTANGELO TOLD HIM OF HAVING A COUSIN WHO WAS A LAWYER FOR MOB BOSS JOHN GOTTI AND OF PERSONALLY TALKING TO MR GOTTI THIS WEEK MR SANTANGELO SUED MR ALLWEISS FOR DEFAMATION FEW OUTSIDERS COULD HAVE ANTICIPATED SUCH SEETHING INTRIGUE IN THE GIDDY FIRST YEAR AFTER HOME SHOPPING WENT PUBLIC BUT THE ARDOR ON WALL STREET MASKED SOME UNDISCIPLINED PRACTICES AS HOME SHOPPING'S SALES AND STOCK PRICE ROSE MR SPEER WENT ON A SPENDING SPREE HE PUT UP 250 MILLION FOR A DOZEN UHF TV STATIONS 100 MILLION FOR A SOPHISTICATED PHONEORDERING SYSTEM 100 MILLION FOR HOME SHOPPING'S 50ACRE COMPLEX DOTTED WITH HANGARSIZED BUILDINGS AND THREE TV STUDIOS AND MILLIONS MORE FOR A CURIOUS PORTFOLIO OF PROPERTIES SOME OF THEM FIT A MAILORDER FIRM A VIDEO SHOPPING SERVICE BUT WITHIN A YEAR THE COMPANY WAS IN 15 LINES OF BUSINESS INCLUDING INSURANCE REAL ESTATE TRAVEL STOCK BROKERAGE COSMETICS MAILORDER PRESCRIPTION DRUGS AND TRUCKING THE COSTLY DIVERSIFICATION HAS HAD MIXED RESULTS AS FOR THE SELLING ITSELF CUSTOMERS AT ONE POINT EARLY ON WERE RETURNING 70 OF THE FURS AND HALF OF THE PERSONAL COMPUTERS THE CHANNEL SOLD INVENTORY SWELLED OMINOUSLY THE COMPANY MADE THE DUBIOUS CLAIM THAT INADEQUATE PHONE SERVICE COST IT HALF A BILLION DOLLARS IN PROFITS ON LOST ORDERS AND SUED GTE CORP BUT GTE COUNTERSUED AND A JURY ORDERED HOME SHOPPING TO PAY GTE 100 MILLION FOR LIBELING IT WITH THE CLAIM GTE LATER ACCEPTED 45 MILLION AS SETTLEMENT AT MOST RETAILING COMPANIES BUYERS ARE REQUIRED TO KEEP THEIR RELATIONS WITH SUPPLIERS STRICTLY ARM'S LENGTH AT WALMART FOR INSTANCE THEY MAY NOT EVEN ACCEPT A CUP OF COFFEE BUT HOME SHOPPING SOMETIMES PLACED HUGE ORDERS WITH SUPPLIERS THAT IT TURNS OUT HAD THEIR OWN SEPARATE DEALINGS ON THE SIDE WITH THE SPEERS OR OTHER COMPANY EXECUTIVES ONE SUCH SUPPLIER IS GARDEN STATE NUTRITIONALS OF NEW JERSEY HOME SHOPPING INSIDERS SAY THE NETWORK BOUGHT LARGE AMOUNTS OF VITAMINS FROM GARDEN STATE WHICH IT THEN MARKETED UNDER THE LIFEWAY NAME THE OWNER OF GARDEN STATE KEITH FRANKEL OWNED A SPECIAL MODEL BMW THAT ENDED UP IN THE HANDS OF A TOP HOME SHOPPING EXECUTIVE IN FEBRUARY 1989 MR FRANKEL HELD TITLE TO THE BMW NEW JERSEY MOTOR VEHICLE RECORDS INDICATE FLORIDA MOTOR VEHICLE RECORDS SHOW THAT IN OCTOBER 1990 THE TITLE WAS TRANSFERRED TO THE PRESIDENT OF HOME SHOPPING'S LIFEWAY VITAMIN UNIT BENEDICT V WHITE JR MR WHITE WHO HOME SHOPPING SAYS HAS JUST BEEN ASSIGNED NEW DUTIES WASN'T AVAILABLE FOR COMMENT MR FRANKEL SAYS HE SOLD THE BMW TO MR WHITE FOR MORE THAN 30000 AND EVERYTHING ABOUT THE SALE WAS PROPER HE ADDS THAT MR WHITE REQUESTED SPECIAL APPROVAL FROM MR SPEER TO BUY THE CAR AND THAT GARDEN STATE'S SALES TO HOME SHOPPING ARE A VERY SMALL PART OF OUR BUSINESS IN ANOTHER SUPPLIERPURCHASER LINK ROY SPEER IN 1986 BOUGHT A ST PETERSBURG MARINA FROM A COMPANY COHEADED BY BUSINESSMAN JACK STAPLES AROUND THIS TIME MR STAPLES BECAME A PARTNER IN A VENTURE THAT SOLD HOME SHOPPING SEVERAL MILLION DOLLARS WORTH OF COINS RECOVERED FROM A 1622 SHIPWRECK THAT OF THE NUESTRA SENORA DE ATOCHA THEY PROVED A SALES DUD FOR THE NETWORK MR STAPLES CONFIRMS HIS ROLE IN THE DEAL BUT DECLINES FURTHER COMMENT AND IN STILL ANOTHER CASE A MAN NAMED MAX HUMBERT SOLD AN OCEANFRONT MANSION IN FREEPORT THE BAHAMAS TO ROY SPEER IN DECEMBER 1991 FOR 560000 ABOUT HALF WHAT LOCAL REALESTATE AGENTS SAY IT WAS ACTUALLY WORTH WITHIN MONTHS A COMPANY OF WHICH MR HUMBERT WAS A COOWNER PARAMOUNT INTERNATIONAL COIN CORP BEGAN REAPING SOME 15 MILLION IN ORDERS FROM HOME SHOPPING FOR HUNDREDS OF THOUSANDS OF COLUMBUS COMMEMORATIVE COINS AND JEWELRY PIECES MR HUMBERT SAYS THE ORDERS AND THE MANSION SALE WEREN'T RELATED MR SPEER HAS DECLINED COMMENT HOME SHOPPING'S NEW OWNER LIBERTY MEDIA IS INVESTIGATING IN ANY CASE MANY OF THE PARAMOUNT COINS DIDN'T SELL WELL AND THEY CONTRIBUTED 2 MILLION TOWARD AN INVENTORY WRITEDOWN OF 227 MILLION THAT HOME SHOPPING TOOK IN MARCH OFTEN SUPPLY DEALS WERE CUT AT A NEARBY MEXICAN RESTAURANT CALLED PEPE'S PEPE'S WAS ALWAYS FULL OF VENDORS WHO WERE WAITING FOR ROY TO WALK THROUGH THE DOOR SAYS A FORMER EXECUTIVE THE PURCHASING DEPARTMENT ITSELF WAS HEADED BY SON RICHARD SPEER WHOM ROY SPEER WANTED THERE EXECUTIVES SAY BECAUSE OF HIS FEARS OF BEING RIPPED OFF RICHARD PRESIDED FROM A HUGE DESK TOPPED WITH THE SKIN OF A SEAL HIS GRANDFATHER HAD KILLED THE DEPARTMENT WAS IN A SEPARATE BUILDING AND HE RAN IT AS A WORLD UNTO ITSELF WE OPERATED ON OUR OWN RICHARD NEVER WANTED ANYONE TO KNOW WHAT WAS GOING ON IN PURCHASING SAYS A FORMER BUYER NO DOUBT SOME OF THE PURCHASING DEPARTMENT'S MANY PURCHASES OF GOODS THAT PROVED HARD TO SELL STEMMED FROM SHEER INEXPERIENCE AT ONE POINT ALL SEVEN MAIN BUYERS LACKED PRIOR PURCHASING EXPERIENCE BUT FOR RICHARD SPEER AN ORDERING ERROR HAD A SILVER LINING HE GOT A 15 COMMISSION ON THE LIQUIDATION OF ALL UNSOLD MERCHANDISE AND DAMAGED GOODS THROUGH A SMALL COMPANY HE OWNED WESTERN HEMISPHERE SALES INC WHICH HAD AN ARRANGEMENT WITH HOME SHOPPING HOME SHOPPING SAID YESTERDAY THAT IT IS PHASING OUT ITS RELATIONSHIP WITH WESTERN HEMISPHERE THIS MONTH RICHARD SPEER HAD ANOTHER SIDE DEAL WITH HOME SHOPPING HE OWNED A COMPANY CALLED PIONEER DATA SERVICES INC THAT WAS PAID 1 OF HOME SHOPPING'S GROSS PROFITS FOR DESIGNING ORDERTAKING AND INVENTORYCONTROL SOFTWARE SOFTWARE THAT APPARENTLY WAS OF LIMITED UTILITY HOME SHOPPING IS REVIEWING ITS RELATIONSHIP WITH PIONEER PAYMENTS FROM HOME SHOPPING TO RICHARD SPEER'S SIDE BUSINESS BEGAN IN 1985 THE PAYMENTS TOTALED MORE THAN 14 MILLION IN THE PAST THREE FISCAL YEARS ALONE ACCORDING TO A SHAREHOLDER LAWSUIT FILED LAST DECEMBER IN FEDERAL DISTRICT COURT IN TAMPA THE TWO FIRMS ALSO ENJOYED ESPECIALLY LOW OVERHEAD THE SUIT SAYS HOME SHOPPING PROVIDED THEIR EQUIPMENT OFFICE SPACE AND STAFF ROY SPEER'S WRATH RAINED DOWN ON ANY EMPLOYEE WHO DARED ASK ABOUT THIS FAVORITESON ARRANGEMENT TALL ROTUND AND INTENSE HE WASN'T SHY ABOUT RANTING AND RAVING IN FRONT OF THE ENTIRE STAFF SAYS A FORMER EXECUTIVE ADDS A SECOND ONE HE'D BE STANDING OVER YOU WITH HIS NOSE IN YOUR FACE HE HAD A BULL NECK AND ALL THE VEINS WOULD BE POPPING OUT THAT IS HOW HE SHUT UP CRITICS HE INTIMIDATED THEM HOME SHOPPING'S FIRST OUTSIDE CHIEF FINANCIAL OFFICER JOSEPH A CONNOLLY TRIED IN 1987 TO COMPLAIN TO ROY SPEER MR CONNOLLY HAD NOTICED THAT BUYERS WERE PAYING SOME SUPPLIERS HIGHER PRICES FOR THE SAME PRODUCTS THEY WERE GETTING AT LOWER PRICES FROM OTHER VENDORS AND HE ALSO QUESTIONED THE DEALS WITH RICHARD SPEER'S COMPANIES BUT I WAS NEVER ALLOWED OR WAS ABLE TO DO A FULL AUDIT OF THE PROCEDURES INVOLVED MR CONNOLLY SAID IN A DEPOSITION IN A SUIT IN FLORIDA STATE COURT MR CONNOLLY TESTIFIED THAT RICHARD SPEER'S PIONEER DATA SERVICES WAS A SHELL CORPORATION AND THAT ITS SOFTWARE DIDN'T WORK WITH THE HOME SHOPPING COMPUTER SYSTEM THAT RECORDED SALES HE CONTINUED WHEN I BROUGHT THAT UP TO THE ATTENTION OF ROY SPEER HE EXPLAINED TO ME THAT PIONEER WAS A COMPANY OF HIS AND THAT THE SYSTEM WAS GOING TO STAY IN PLACE A SHORT TIME LATER MR CONNOLLY SAID HE WAS ASKED TO RESIGN ROY SPEER DECLINED TO COMMENT ON MR CONNOLLY'S ALLEGATIONS OR WHETHER HE OWNED PIONEER MR CONNOLLY WHO COULDN'T BE REACHED FOR THIS ARTICLE GAVE THE DEPOSITION IN A SUIT FILED AGAINST HOME SHOPPING IN A FLORIDA STATE COURT BY FW WOODY BOYD A SOFTWARE VENDOR EXCEPT FOR SON RICHARD AND PERHAPS DAUGHTER LISA SPEER WHO RUNS HOME SHOPPING'S TRAVEL SUBSIDIARY ROY SPEER'S CLOSEST ALLY AT THE COMPANY WAS MR SANTANGELO A SWAGGERING WALL STREET VETERAN AND PAL WHO SAYS HE AND MR SPEER HAVE FISHED TOGETHER ALL OVER THE WORLD THEIR RELATIONSHIP BLOSSOMED IN 1986 WHEN MR SPEER TAPPED MR SANTANGELO'S NEW YORK SECURITIES FIRM TO BE A MARKET MAKER IN NEWLY ISSUED HOME SHOPPING STOCK HOME SHOPPING HIRED HIM AS AN ADVISER A FEW YEARS LATER PAYING HIM CONSULTING FEES OF UP TO 300000 A YEAR OTHER ADVISERS SAY HE HAD AN UNUSUAL ARRANGEMENT WHEN HE INTRODUCED A VENDOR THAT ENDED UP SELLING GOODS TO HOME SHOPPING THE COMPANY AND THE VENDOR BOTH PAID HIM FEES MR SANTANGELO SET UP A VENDOR OF HIS OWN TO SELL GOODS TO HOME SHOPPING IN 1987 HE CREATED A1 INTERNATIONAL IMPORTING LP WITH THREE PARTNERS A1 SOLD HOME SHOPPING AN INCONGRUOUS MIX OF CERAMIC FIGURINES COIN SETS AND 8000 FIRE EXTINGUISHERS IN LESS THAN TWO YEARS IT RACKED UP MORE THAN 16 MILLION IN HOME SHOPPING ORDERS SOME OF IT RELATED TO ILLEGAL RACKETEERING THE US DISTRICT COURT IN PHILADELPHIA RULED IN EARLY 1991 THE COURT FOUND THAT A1 HAD SCHEMED TO COLLECT TWICE FOR THE SAME ORDER IT GARNERED ORDERS FROM HOME SHOPPING THEN COLLECTED PAYMENT IN ADVANCE FROM A RETAIL FACTORING FIRM WHICH IN TURN WAS TO HAVE BEEN PAID BY HOME SHOPPING BUT A1 BEAT THE FACTOR TO THE PUNCH GETTING HOME SHOPPING TO PAY IT DIRECTLY A1 THEN DISTRIBUTED MOST OF THE PROCEEDS TO ITS FOUR OWNERS AFTER THE FACTOR SUED THE PHILADELPHIA COURT ASSESSED A 2 MILLION JUDGMENT AGAINST A1 AND ITS OWNERS IN A SEPARATE CRIMINAL CASE TWO OF THE A1 PARTNERS KEVIN AND JACK CASSIDY DREW PRISON TERMS AFTER ADMITTING THEY EVADED TAXES ON PERSONAL EXPENSES THAT A1 HAD PAID HOME SHOPPING MEANWHILE WAS LEFT WITH ALMOST 34000 PIECES OF CERAMIC GOODS BOUGHT FROM A1 THAT NO ONE WANTED CONTRIBUTING ABOUT 1 MILLION TO ITS RECENT INVENTORY WRITEDOWN FEDERAL PROSECUTORS IN TAMPA ARE INVESTIGATING POSSIBLE CUSTOMS VIOLATIONS RELATED TO THE GOODS DESPITE THE TROUBLES WHICH MR SANTANGELO BLAMES ON HIS PARTNERS ROY SPEER HAD HOME SHOPPING LEND HIM 12 MILLION TO HELP PAY A1'S 2 MILLION JUDGMENT MR SANTANGELO SAYS HE REPAID THE LOAN WITH INTEREST A LITTLE OF THE FINAGLED MONEY ENDED UP IN THE POCKET OF HOME SHOPPING PURCHASING CHIEF RICHARD SPEER IN JULY 1989 MR SANTANGELO AND HIS PARTNERS AUTHORIZED A1 TO WRITE A CHECK FOR 40000 TO MR SPEER AS PARTIAL PAYMENT FOR A BOAT HE HAD SOLD TO A1 PARTNER KEVIN CASSIDY HOME SHOPPING ALSO CONTINUED TO DO BUSINESS WITH MR SANTANGELO ABOUT A MONTH AFTER A1 BECAME INSOLVENT MR SANTANGELO SET UP ANOTHER COMPANY PREMIER INTERNATIONAL IMPORTING CO TO PICK UP WHERE A1 LEFT OFF MR SANTANGELO ALSO TRIED TO LEAD HOME SHOPPING INTO A MUSIC VENTURE WITH A ONETIME ROCK MANAGER AND CONVICTED MARIJUANA SMUGGLER ACCORDING TO THE SUIT FILED THIS YEAR BY MR ALLWEISS THE FIRED SENIOR VICE PRESIDENT DOC MCGHEE HAD BEEN A PROMOTER FOR BON JOVI MOTLEY CRUE AND THE SCORPIONS AND DREW A FELONY DRUG CONVICTION IN 1988 FOR A MIDDLEMAN ROLE IN THE SMUGGLING OF 22 TONS OF COLOMBIAN POT INTO NORTH CAROLINA MR SANTANGELO PROPOSED THAT HOME SHOPPING BUY MR MCGHEE'S COMPANY AND PAY HIM A MILLIONDOLLAR SALARY TO RUN IT THE LAWSUIT SAID A HOME SHOPPING SPOKESWOMAN SAYS THAT HOME SHOPPING AGREED WITH MR MCGHEE'S FIRM ARTIST SERVICES INC IN MARCH 1991 TO FORM STAR PRODUCTS GROUP TO ACQUIRE MUSIC AND PRODUCTS AND SERVICES BUT SAYS THAT THERE HASN'T BEEN A LOT OF ACTIVITY IN THAT AREA WHY WOULD THE CHAIRMAN OF A PUBLICLY HELD COMPANY ON THE NEW YORK STOCK EXCHANGE INDULGE MR SANTANGELO'S MYRIAD ADVENTURES ONE EXPLANATION MAY LIE IN THE UNSTINTING LOYALTY AND FINANCIAL ADVICE MR SANTANGELO CONSTANTLY OFFERED SUCH AS HELPING PLACE A BIG BLOCK OF STOCK WHEN COFOUNDER BUD PAXSON SOLD HIS STAKE IN THE COMPANY IN MARCH 1992 MR SANTANGELO ALSO HELPED OUT IN THE DEPARTURE OF LONGTIME SPEER CONFIDANT MR DIFILIPPO THAT DEAL HOWEVER WOULD LATER BRING TROUBLE MR DIFILIPPO MET MR SPEER IN THE 1970S HELPED TAKE HOME SHOPPING PUBLIC A DECADE LATER AND THEN JOINED THE COMPANY AS GENERAL COUNSEL THE TWO GREW CLOSE MR SPEER HAS AN AVERSION TO FUNERALS ACCORDING TO MR DIFILIPPO YET HE WENT TO THE SERVICE FOR MR DIFILIPPO'S FIRST WIFE HE ALSO INTRODUCED MR DIFILIPPO TO WANDA RAYLE WHO BECAME MR DIFILIPPO'S SECOND WIFE MR SPEER A NOTARY PUBLIC MARRIED THEM BUT THE FRIENDSHIP BECAME STRAINED TWO YEARS AGO SO MUCH SO THAT THE TWO MEN ONCE ALMOST CAME TO BLOWS IN THE CAFETERIA HE WAS IN MY FACE MR DIFILIPPO SAYS IT WAS TIME FOR MR DIFILIPPO TO GET OFF THE HOME SHOPPING ROLLER COASTER DOING SO HE DEMANDED THE PILES OF STOCK HE SAYS HE HAD BEEN PROMISED MESSRS SPEER AND PAXSON ULTIMATELY GAVE HIM A FOURYEAR CONSULTING CONTRACT AT 200000 A YEAR PLUS HOME SHOPPING SHARES WORTH 14 MILLION AT THE TIME WITH MR SANTANGELO SERVING AS THE ESCROW AGENT THAT GENEROUS PAYOUT HOWEVER CAME ONLY AFTER MESSRS SPEER AND PAXSON INITIALLY BALKED TO PROD THEM INTO PAYING UP MR DIFILIPPO SAYS HE PREPARED A LAWSUIT TO SETTLE WHAT HE HAS TERMED A COMMERCIAL DISPUTE HE NEVER FILED IT BUT A FEW MONTHS AGO A PURLOINED COPY OF THE SUIT SURFACED IN COURT MR DIFILIPPO'S SECOND WIFE WANDA ENTERED A COPY INTO THE RECORD IN A DIVORCE CASE AGAINST HER HUSBAND SHE CLAIMED THAT THE SUIT DESCRIBED VARIOUS CHICANERY BY MESSRS SPEER AND PAXSON INCLUDING SECRET STAKES OWNED BY THEM IN HOME SHOPPING SUPPLIERS AND ASSERTED THAT THEY HAD MADE THE 14 MILLION STOCK PAYMENT TO MR DIFILIPPO TO SILENCE HIS THREATS TO EXPOSE THEIR ACTIVITIES MR DIFILIPPO MOVED SWIFTLY TO HAVE THE PAPERS SEALED SO THEIR CONTENTS HAVEN'T BEEN DISCLOSED ALL THREE MEN DENIED THE HUSHMONEY ALLEGATION THE FEDERAL GRAND JURY IN TAMPA BAY HAS SUBPOENAED THE SEALED RECORDS TO TAKE A LOOK FOR MR SPEER THINGS GOT WORSE LAST MONTH WHEN MR ALLWEISS ANOTHER LONGTIME FRIENDTURNEDFOE ECHOED MANY OF MRS DIFILIPPO'S CLAIMS IN A LAWSUIT OF HIS OWN AND ADDED A FEW MORE MR ALLWEISS FIRST MET ROY SPEER IN THEIR LAWYERLY DAYS TWO DECADES AGO AND JOINED HOME SHOPPING AS A SENIOR VICE PRESIDENT IN 1990 HE QUICKLY MADE MANY ENEMIES SUCH AS BY AXING THE WHOLE MARKETING DEPARTMENT WHEN HE TOOK OVER LEGAL MATTERS LATER ON HE SET A POLICY OF BEING FIRST TO READ EVERYONE'S INCOMING MAIL IN THE DEPARTMENT OTHER EXECUTIVES DEMANDED TO KNOW WHAT QUALIFIED THE EXPROSECUTOR FOR A TOP JOB IN THE CORPORATE WORLD WHEN MR DIFILIPPO HOUNDED MR SPEER FOR AN EXPLANATION THE BOSS FINALLY EXPLODED THAT MAN PUT 30 MEN ON DEATH ROW THE TOTAL ACTUALLY WAS 20 BUT IT WAS ONE OF MR ALLWEISS'S PROUDEST ACCOMPLISHMENTS HE LATER SAID OVER LUNCH AT PEPE'S THE COMPANY HANGOUT BUT LATE LAST YEAR MR ALLWEISS HAD A FALLING OUT WITH MR SPEER FOR REASONS THAT AREN'T ENTIRELY CLEAR HOME SHOPPING FIRED MR ALLWEISS IN FEBRUARY AFTER LIBERTY MEDIA ACQUIRED CONTROL MR ALLWEISS WAS ESCORTED OUT BY TWO GUARDS THE COMPANY PAINTED OVER HIS RESERVED PARKING SPACE AND SOMEONE LAID A DEAD ROSE IN THE SPOT LAST MONTH MR ALLWEISS SUED IN STATE COURT IN PINELLAS COUNTY FLA HE ALLEGED THAT ROY SPEER HAD FILED MISLEADING STATEMENTS WITH THE SEC AND THAT LIBERTY HAD FIRED HIM FOR TRYING TO EXPOSE THE MYRIAD MISDEEDS LIBERTY DENIES ALL OF HIS ASSERTIONS IT WAS ALSO IN THIS SUIT THAT MR ALLWEISS SOUGHT TO ASSOCIATE MR SANTANGELO WITH THE MOB THIS WEEK MR SANTANGELO RETURNED SERVE FILING A DEFAMATION SUIT AGAINST MR ALLWEISS IN STATE COURT IN HILLSBOROUGH COUNTY FLA INVOKING MR ALLWEISS'S NICKNAME OF THE RAZOR IT SAYS MR ALLWEISS KEPT IN HIS OFFICE A STRAIGHTRAZOR PLAQUE AS A COMMEMORATIVE FOR CRIMINALS HE HAD SLICED UP OR PUT TO DEATH AS A STATE PROSECUTOR AS THE STORM AROUND THE COMPANY INTENSIFIES HOME SHOPPING CONTINUES TO SELL ON THE AIR CHIRPY HOSTS ON SEPARATE CABLE AND UHF FEEDS SELL SUCH GOODS AS CAESAR'S WOMAN PERFUME AT 1695 A BOTTLE THEY REACH A POTENTIAL AUDIENCE OF 274 MILLION CABLE HOMES AND A SIMILAR NUMBER OF NONCABLE HOUSEHOLDS HOME SHOPPING'S STOCK HAS RECOVERED A BIT TO THE MID6 RANGE THANKS TO LIBERTY MEDIA'S ANNOUNCEMENT A FEW WEEKS AGO THAT IT INTENDS TO BUY 15 MILLION MORE SHARES THE COMPANY WHICH HAD A NET LOSS OF ALMOST 27 MILLION IN ITS MOST RECENT QUARTER AFTER THE BIG INVENTORY WRITEDOWN NOW IS LARGELY RUN BY A LIBERTYINSTALLED TEAM THE NEW CEO IS GERALD HOGAN WITH ROY SPEER REMAINING AS CHAIRMAN AS THE ALLEGATIONS PLAY OUT IN COURT AND AS INVESTIGATORS DIG DEEPER THE CENTRAL CHARACTERS IN THE SCANDAL BIDE THEIR TIME EACH IN HIS OWN WAY MR ALLWEISS IS AWAITING A COURT DATE FOR HIS SUIT AGAINST THE COMPANY AND PREPARING AN ANSWER TO MR SANTANGELO'S MR SANTANGELO IS RECUPERATING FROM A FLAREUP OF A HEART CONDITION MR DIFILIPPO NOW DIVORCED IS HOLDING OUT IN MIAMI AND EAGER HE SAYS TO TESTIFY BEFORE THE TAMPA FEDERAL GRAND JURY RICHARD SPEER NEWLY SEVERED FROM HIS COZY TIES AT HOME SHOPPING CONTINUES HIS ACTIVITIES AS A BUSINESSMAN IN THE TAMPA BAY AREA HIS ATTORNEY SAYS COFOUNDER MR PAXSON FLUSH WITH ALMOST 70 MILLION FROM THE SALE OF HIS STAKE 14 MONTHS AGO HAS FOUND A NEW CALLING THE VETERAN BROADCASTER HAS LAUNCHED A RELIGIOUS NETWORK CALLED WORSHIP THAT AIRS BIBLICAL VERSES AGAINST A BACKDROP OF NATURE SCENES ACCEPTING CREDITCARD DONATIONS FROM VIEWERS AND ROY SPEER STILL VENTURES INTO THE OFFICE THOUGH HIS ROLE HAS WITHERED TO LITTLE MORE THAN THAT OF ADVISER SOME WEEKENDS HE RETREATS TO THE BAHAMIAN MANSION HE BOUGHT FROM THE MAN WHO WOULD BECOME A HOME SHOPPING SUPPLIER THERE SOME LOCALS SAY MR SPEER DONATES BOXES OF BIBLES TO CHURCHES INSCRIBED WITH HIS NAME AND WITH THE ADDRESS OF HIS SEASIDE ESTATE 9305140007 930514 BUSINESS BRIEF NOKIA OY FINNISH ELECTRONICS CONCERN PLANS TO PROPOSE SHARE ISSUE THE BOARD OF FINNISH ELECTRONICS AND TELECOMMUNICATIONS GROUP NOKIA OY SAID IT WILL PROPOSE A SHARE ISSUE DIRECTED TO INTERNATIONAL INVESTORS THE NEW ISSUE AIMS TO RAISE RISK CAPITAL OF ABOUT 100 MILLION OR ROUGHLY 550 MILLION FINNISH MARKKAA NOKIA SAID THE BOARD WILL PROPOSE AT ITS JUNE 10 ANNUAL MEETING THAT SHAREHOLDERS GRANT IT AUTHORIZATION TO CARRY OUT THE NEW ISSUE WITHIN ONE YEAR ACCORDING TO NOKIA CHIEF EXECUTIVE JORMA OLLILA THE DECISION FOLLOWS A SURGE IN INTEREST FOR NOKIA SHARES NOKIA IS NOW WELLPOSITIONED TO RAISE NEW CAPITAL IN THE INTERNATIONAL FINANCIAL MARKETS HE SAID HE SAID THE MONEY RAISED WILL BE USED TO STRENGTHEN THE GROUP'S FINANCIAL STRUCTURE AND TO FINANCE GROWTH IN THE TELECOMMUNICATIONS AND MOBILE PHONES BUSINESS AREAS THE INVESTMENT BANKS CREDIT SUISSE FIRST BOSTON AND ENSKILDA SECURITIES BOTH LONDONBASED WILL ACT AS ADVISERS SHOULD THE NEW ISSUE BE CARRIED OUT 9305140006 930514 FRENCH FIRMS REHEARSE FOR PRIVATIZATION FORERUNNERS SHED LIGHT ON CHANGE A CONVERSION BEGETS BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS AS FRANCE'S NEW GOVERNMENT LINES UP ITS STATEOWNED COMPANIES FOR PRIVATIZATION RIVALS AND INVESTMENT ANALYSTS WILL BE SEEKING CLUES TO HOW THE FIRMS WILL PERFORM UNDER NEW OWNERSHIP THEY EXPECT AN ARRAY OF CHANGES RANGING FROM THE BROAD A SLOWING OF THE RECENT TENDENCY TOWARD FLAGFLYING FOREIGN ACQUISITIONS TO THE SPECIFIC A REDESIGN OF PARIS AIRPORTS TO MOVE DUTYFREE SHOPS OUT OF THE SHADOWS AND INTO TRAVELERS' PATHS BUT INVESTORS SHOULDN'T EXPECT A WAVE OF SPECTACULAR METAMORPHOSES LIKE THOSE OF THE 1980S WHICH TRANSFORMED ONCEUNWIELDY STATE MONOPOLIES LIKE BRITISH AIRWAYS PLC OR FRANCE'S ALCATELALSTHOM CIE INTO STOCKMARKET STARS OF THE 1990S FURTHERMORE MOST OF THOSE LIKELY TO TOP FRANCE'S SALE LIST PRIMARILY OIL DRUG AND INSURANCE COMPANIES HAVE ALREADY UNDERGONE THE SORT OF OVERHAUL NECESSARY TO BEGIN COMPETING IN THE PRIVATE SECTOR INDEED MANY OF THE TOPSHELF COMPANIES OR THEIR SUBSIDIARIES ALREADY TRADE ON PUBLIC MARKETS AT LEAST IN PART THUS THEY HAVE GAINED FIRSTHAND EXPOSURE TO PRIVATE INVESTORS' WANTS AND NEEDS IN MOST CASES THE LARGEST GOVERNMENTOWNED COMPANIES HAVE SPENT THE LAST FIVE YEARS LAYING GROUNDWORK IN EARNEST RETURNS HAVE BEEN IMPROVED DEBT LOADS SLASHED WORK FORCES TRIMMED AND PRODUCTIVITY IMPROVED EVEN SOME OF THE TRICKIEST THICKETS HAVE BEEN UNTANGLED RENAULT FOR EXAMPLE THE AUTO MAKER IS NO LONGER A STATE AGENCY BUT A FULLFLEDGED COMPANY THOUGH MOST OF ITS SHARES ARE STILL IN STATE HANDS HOWEVER EVEN IF FINANCIAL DATA SHOW A NARROWING PERFORMANCE GAP BETWEEN STATE AND PRIVATESECTOR COMPANIES EXECUTIVES WHO WENT THROUGH PRIVATIZATION SIX OR SEVEN YEARS AGO POINT TO A NUMBER OF LIKELY HURDLES FOR THE NEXT CLASS ONCE THEY NO LONGER ANSWER TO THE STATE MOST NATIONALIZED COMPANIES HAVE ALREADY MADE THEIR CHOICES REGARDING STRATEGY SAYS JEANLOUIS BEFFA CHAIRMAN OF GLASS MAKER SAINTGOBAIN SA THE FIRST COMPANY TO BE SOLD IN THE WAVE OF FRENCH PRIVATIZATIONS THAT TOOK PLACE FROM 1986 TO 1988 BUT KEEPING PROFESSIONAL SHAREHOLDERS CONTENT ISN'T QUITE THE SAME AS MAKING A DAILY PHONE CALL TO A CIVIL SERVANT IN A GOVERNMENT MINISTRY MR BEFFA SUGGESTS TAKING SHAREHOLDERS INTO ACCOUNT MEANS A PRUDENT FINANCIAL STRUCTURE MAINTAINING A REGULAR DIVIDEND AND NOT TAKING RISKS HE SAYS SOME PRIVATIZED FIRMS ALREADY BUFFETED BY TURBULENT AND HOSTILE STOCK MARKETS SUCH AS BANK SOCIETE GENERALE THE TARGET OF A FAILED RAID IN 1988 URGE THE NEW KIDS ON THE BLOCK TO QUICKLY ESTABLISH A GROUP OF LOYAL LONGTERM SHAREHOLDERS ONE OF THE KEY THINGS WE DISCOVERED WAS THE IMPORTANCE OF SHAREHOLDERS' FIDELITY SAYS JEANPAUL DELACOUR SOCIETE GENERALE'S VICE CHAIRMAN AND CHIEF OPERATING OFFICER OF COURSE SUCH CAUTIONS WON'T SNUFF THE ARDOR OF CANDIDATES EAGER TO BECOME FULLFLEDGED PRIVATE COMPANIES SEVERAL CHAIRMEN WHO HAVE FAITHFULLY SERVED THE STATE FOR YEARS ARE CURRENTLY TRUMPETING THEIR PRIVATESECTOR AMBITIONS IN HOPES THAT THEY WILL BE AMONG THE FIRST ONTO THE MARKET TODAY I BELIEVE IT IS IN THE INTERESTS OF MY COUNTRY AND MY COMPANY TO BE PRIVATIZED MICHEL ALBERT CHAIRMAN OF ASSURANCES GENERALES DE FRANCE TOLD A RADIO INTERVIEWER RECENTLY THE LIST ISN'T DEFINITIVE YET BUT AGF AND RIVAL INSURER UNION DES ASSURANCES DE PARIS ARE CONSIDERED FRONTRUNNERS FOR PRIVATIZATION ALONGSIDE INDUSTRIAL GROUPS SUCH AS OIL GIANT ELF AQUITAINE AND CHEMICALS CONCERN RHONEPOULENC FURTHERMORE INDUSTRY MINISTER GERARD LONGUET HAS INDICATED THAT HE WANTS TO TAKE QUICK ACTION ON THE STATE'S MONEYLOSING COMPANIES NOTABLY COMPUTER MAKER GROUPE BULL MR LONGUET HAS SAID THAT THE EUROPEAN COMMUNITY COMMISSION IS PRESSURING FRANCE ON THE QUESTION OF THE GROUP'S STATE SUBSIDIES AND THAT HE IS AWAITING PROPOSALS FROM BULL CHAIRMAN BERNARD PACHE THAT COULD LEAD TO A CHANGE IN BULL'S SHAREHOLDING STRUCTURE BESIDES THE FRENCH STATE BULL SHAREHOLDERS INCLUDE FRANCE TELECOM JAPAN'S NEC CORP AND INTERNATIONAL BUSINESS MACHINES CORP BEFORE LAST MARCH'S ELECTION THE RIGHTWING GOVERNMENT SAID IT HOPED TO RAISE AS MUCH AS 300 BILLION FRENCH FRANCS 5517 BILLION IN ASSET SALES OVER THE NEXT FIVE YEARS HOWEVER FULLSCALE PRIVATIZATION IS NOT EXPECTED TO BEGIN BEFORE SUMMER THE FULL PROGRAM INCLUDING A LIST OF ALL COMPANIES ELIGIBLE FOR SALE IS DUE TO BE DISCUSSED AT A MAY 19 CABINET MEETING ACCESS TO EQUITY MARKETS GIVEN THE OFTREPEATED CRITICISM THAT FRANCE'S NATIONALIZED GROUPS HAVE BEEN ABLE TO INDULGE THEIR EXPANSIONARY APPETITES ONLY AT THE TAXPAYERS' EXPENSE IT'S NOTABLE THAT MOST PRIVATIZATION CANDIDATES WANT TO ESCAPE THE STATE'S GRIP MAINLY TO WIN GREATER ACCESS TO EQUITY MARKETS IN HIS RADIO INTERVIEW FOR EXAMPLE AGF'S MR ALBERT SAID WE WOULD BE MUCH MORE POWERFUL THAN WE ARE IF WE HAD ALREADY BEEN PRIVATIZED AN EXCEPTION TO THE RULE FRANCE'S BESTKNOWN FIRM IN THIS RESPECT CREDIT LYONNAIS HAS SPENT AND LENT SO FREELY IN RECENT YEARS THAT IT IS THOUGHT TO BE LOW ON THE PRIVATIZATION TOTEM POLE NEEDING SEVERAL YEARS TO SORT OUT BILLIONS OF FRANCS OF BAD LOANS NOTABLY IN HOLLYWOOD AND SWITZERLAND PRUDENCE A VIRTUE OF PRIVATIZATION EXECUTIVES WHO STEERED THEIR COMPANIES THROUGH THE 19861988 PROCESS SAY THEY'VE LEARNED FROM SUCH EXPERIENCES THEY CITE A NUMBER OF LIKELY CHANGES IN BEHAVIOR FOR COMPANIES THAT TAKE THE PLUNGE INTO THE PRIVATE SECTOR INCLUDING A MORE PRUDENT USE OF SHAREHOLDERS' FUNDS ACCESS TO FRESH CAPITAL DOESN'T MEAN ONE CAN IMMEDIATELY EMBARK ON AN ACQUISITION SPLURGE THEY SAY IN FACT THE SELLOFF MIGHT HAVE EXACTLY THE OPPOSITE EFFECT SINCE WOOING SKEPTICAL STOCKMARKET INVESTORS CAN PROVE DECIDEDLY MORE DIFFICULT THAN DEALING WITH A SINGLE GOVERNMENT MANDARIN FOR INSTANCE BANKING GROUP SOCIETE GENERALE WAS PRIVATIZED IN 1987 AND HAS SINCE WATCHED ITS TWO STATEOWNED RIVALS CREDIT LYONNAIS AND BANQUE NATIONALE DE PARIS EXPAND AGGRESSIVELY ABROAD WHILE IT PREFERS INSTEAD TO CONCENTRATE ON ITS HOME MARKET THE MAIN CHANGE IN OUR BEHAVIOR WAS THAT WE BECAME RESPONSIBLE SAYS SOCIETE GENERALE'S MR DELACOUR WE FELT MORE CONSTRAINED CIE DE SUEZ SA STANDS AS A WARNING TO ANY OVERAMBITIOUS NEWCOMERS THAT CONGLOMERATE IS STILL FEELING THE PAIN AFTER IMPRUDENTLY SWELLING TO NEARLY THREE TIMES ITS SIZE IN THE TWO YEARS FOLLOWING ITS PRIVATIZATION SUEZ DECLARED A HEFTY LOSS FOR LAST YEAR AND WITH ITS SHARE PRICE IN THE DOLDRUMS IT HAS BEEN SHAKEN IN RECENT MONTHS BY MARKET SPECULATION THAT IT MIGHT BECOME THE TARGET OF A HOSTILE TAKEOVER BID OR EVEN A BOARDROOM COUP BY DISGRUNTLED SHAREHOLDERS EXECUTIVES ALSO PREDICT THAT PRIVATIZED COMPANIES WILL DEVELOP A CLEARER FOCUS ON SHORTTERM AND MEDIUMTERM STRATEGY AND WILL BEGIN AN ACCELERATED DIVESTMENT OF NONESSENTIAL ASSETS LEAVING THE STATE'S BAILIWICK IS NOT ALL ROSY SAY EXECUTIVES WHO HAVE LIVED UNDER BOTH REGIMES IN FACT SOME BETRAY A CERTAIN NOSTALGIA WHEN THEY CONSIDER HOW THE STATE'S LOWER EMPHASIS ON QUARTERLY PERFORMANCE AND DIVIDENDS ALLOWED COMPANIES TO SET THEIR SIGHTS ON THE BIG PICTURE THE PRESSURE OF THE MARKET HAS MANY ADVANTAGES BUT THERE IS SOME SACRIFICE OF THE LONG TERM FOR THE SHORT TERM SAYS RENE DE LA SERRE CHIEF OPERATING OFFICER AT CREDIT COMMERCIAL DE FRANCE SA 9305140005 930514 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 LAIDLAW INC 200 MILLION TWOPART ISSUE OF NOTES AND DEBENTURES PRICED THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 100 MILLION OF NOTES DUE MAY 15 2003 WAS PRICED AT 99659 TO YIELD 7098 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 11 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE THE SECOND PART CONSISTING OF 100 MILLION OF 30YEAR DEBENTURES DUE MAY 15 2023 WAS PRICED AT PAR TO YIELD 825 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 132 PERCENTAGE POINTS ABOVE THE 30YEAR TREASURY BOND THE ISSUE IS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP BEST BUY CO 225 MILLION COMMON SHARES PRICED AT 3850 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CITIZENS FEDERAL BANK 22 MILLION SHARES OF SERIES 1993A NONCUMULATIVE PREFERRED STOCK AT 25 APIECE THROUGH AN UNDERWRITING GROUP LED BY RAYMOND JAMES & ASSOCIATES INC AND ADVEST INC CITIZENS FEDERAL BANK IS THE PRINCIPAL SUBSIDIARY OF CSF HOLDINGS INC IDB COMMUNICATIONS GROUP INC 1304347 COMMON SHARES PRICED AT 3650 APIECE THROUGH MANAGING UNDERWRITERS HAMBRECHT & QUIST INC AND SUTRO & CO INDUSTRIE NATUZZI SPA INITIAL OFFERING OF 84 MILLION AMERICAN DEPOSITARY SHARES EACH REPRESENTING ONE ORDINARY SHARE AT 15 APIECE IN SIMULTANEOUS US AND INTERNATIONAL OFFERINGS THROUGH MANAGERS FIRST BOSTON CORP AND MERRILL LYNCH & CO IN THE US AND CREDIT SUISSE FIRST BOSTON LTD AND MERRILL LYNCH INTERNATIONAL LTD INTERNATIONALLY NATIONAL FUEL GAS CO 23 MILLION COMMON SHARES PRICED AT 3050 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TEXAS PUBLIC FINANCE AUTHORITY 32375 MILLION SERIES 1993 B IMPROVEMENT BONDS APPARENTLY WON BY A JP MORGAN & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 53416 YIELDS FOR REOFFERED BONDS RANGE FROM 34 IN 1995 TO 56 IN 2012 AND 2013 BOTH MOODY'S AND S&P HAVE GIVEN THE BONDS A DOUBLEA RATING VIRGINIA HOUSING DEVELOPMENT AUTHORITY 848 MILLION 1993 SERIES E MULTIFAMILY HOUSING REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5535 YIELDS FOR REOFFERED BONDS RANGE FROM 29 IN 1994 TO 59 IN 2017 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA ASFINAG AUSTRIA 300 MILLION SWISS FRANCS OF 45 PRIVATELY PLACED NOTES DUE JUNE 15 1998 PRICED AT 101 1/2 VIA UNION BANK OF SWITZERLAND FEES 15 POINTS AUSTRALIAN BROADCASTING CORP AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 6 3/4 EUROBONDS DUE JUNE 29 1998 AT ISSUE PRICE OF 101275 VIA HAMBROS BANK LTD YIELD 69 ANNUAL AT BREAKEVEN PRICE FOR COMANAGERS SPREAD SEVEN BASIS POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT NOTE GUARANTOR THE COMMONWEALTH OF AUSTRALIA FEES 2 POINTS CANON INC JAPAN 20 BILLION YEN OF 465 OF EUROBONDS DUE AUG 27 1997 AT ISSUE PRICE 10152 VIA FUJI INTERNATIONAL LTD REOFFERED AT 100195 TO YIELD 459 FEES 1625 POINTS DEUTSCHESUDAMERIKANISCHE BANK AG/DRESDNER BANK AG SAO PAOLO GERMANY PARENT 50 MILLION OF 8 SEMIANNUAL EURONOTES DUE DEC 4 1995 REOFFER AT 9975 VIA DRESDNER BANK AG YIELD AT REOFFER 811 MARGIN 408 BASIS POINTS ABOVE COMPARABLE US TREASURY YIELD FEES 1 POINT EUROPEAN COAL AND STEEL COMMUNITY SUPRANATIONAL 135 MILLION MARKS OF 6 1/8 EUROBONDS DUE JUNE 2 1998 AT ISSUE PRICE 10107 VIA TRINKAUS UND BURKHARDT KGAA YIELD 626 ANNUAL AT BREAKEVEN PRICE FOR COMANAGERS FEES 1625 POINTS GENERAL ELECTRIC CAPITAL CORP US PARENT 200 MILLION OF 4 3/8 EUROBONDS DUE JUNE 3 1996 AT ISSUE PRICE 1009205 VIA MERRILL LYNCH INTERNATIONAL LTD REOFFERED AT 99733 TO YIELD 447 ANNUAL SPREAD 16 BASIS POINTS ABOVE THE THREEYEAR US TREASURY NOTE FEES 1375 POINTS ILE DE FRANCE FRANCE 800 MILLION FRENCH FRANCS OF 7 1/4 EUROBONDS DUE JUNE 21 2001 AT ISSUE PRICE 101196 VIA BANQUE NATIONALE DE PARIS REOFFERED AT 99646 TO YIELD 731 MARGIN 31 BASIS POINTS ABOVE FRENCH TREASURY'S 9 1/2 BONDS DUE 2001 FEES 1875 POINTS KINGDOM OF SWEDEN SOVEREIGN 15 BILLION OF FLOATINGRATE EURONOTES DUE JUNE 1 1998 VIA MERRILL LYNCH INTERNATIONAL LTD AND UBS LTD INTEREST FLOATS AT THREEMONTH LONDON INTERBANK OFFERED RATE PRESENTLY 3 3/16 REOFFER PRICE 997 WHERE YIELD IS 1/16 POINT ABOVE LIBOR CALL OPTION AT PAR AFTER THREE YEARS FEES 015 POINT LAND SECURITIES PLC UK 150 MILLION OF CONVERTIBLE EUROBONDS DUE SEPT 30 2008 VIA J HENRY SCHRODER WAGG & CO INTEREST AT 7 SEMIANNUAL ISSUE PRICE OF PAR CONVERTIBLE INTO ORDINARY SHARES AT 640 PENCE PER SHARE 159 PREMIUM OVER YESTERDAY MORNING'S PRICE OF 552 PENCE CALLABLE AFTER FIVE YEARS AT PAR FEES 25 POINTS SHEARSON LEHMAN BROTHERS PLC US 150 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE JUNE 10 2003 VIA LEHMAN BROTHERS INTERNATIONAL INTEREST FLOATS AT THE SIXMONTH LIBOR SUBJECT TO MINIMUM 5 3/4 MAXIMUM 9 1/4 GUARANTOR SHEARSON LEHMAN HOLDINGS INC FEES 05 POINT SWEDISH EXPORT CREDIT SWEDEN 100 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE DEC 30 1996 AT ISSUE PRICE 100175 VIA HAMBROS BANK LTD REOFFERED AT 9905 TO YIELD 73 MARGIN 50 BASIS POINTS ABOVE CANADA'S 6 1/2 BOND DUE AUGUST 1996 FEES 1375 POINTS 9305140004 930514 TECHNOLOGY SOFTKEY WORDSTAR SET MERGER PROPOSAL VALUED AT 211 MILLION TORONTO SOFTKEY SOFTWARE PRODUCTS INC AND WORDSTAR INTERNATIONAL INC SAID THEY PLAN TO MERGE IN A TRANSACTION VALUED AT 211 MILLION THE COMPUTERSOFTWARE COMPANIES WHICH HAVE COMBINED ANNUAL REVENUE OF 90 MILLION SAID THE MAIN BENEFIT OF A MERGER IS BROADER SALES EXPOSURE RON POSNER CHIEF EXECUTIVE OFFICER OF WORDSTAR NOVATO CALIF SAID THE MERGER WILL GIVE THE NEW COMPANY THE CRITICAL MASS NEEDED TO COMPETE WITH LARGER SOFTWARE COMPANIES WORDSTAR WILL BENEFIT FROM SOFTKEY'S BROAD NORTH AMERICAN RETAIL NETWORK HE SAID WHILE SOFTKEY PRODUCTS COULD BE CHANNELED THROUGH WORDSTAR'S DIRECTMAIL INTERNATIONAL AND MANUFACTURING NETWORKS THE NEW COMPANY WILL ALSO MAKE CD ROM PRODUCTS A MAJOR COMPONENT OF OUR BUSINESS SAID KEVIN O'LEARY PRESIDENT OF TORONTOBASED SOFTKEY CD ROM TECHNOLOGY ALLOWS LARGE AMOUNTS OF DATA TO BE PLACED ON A DISK SIMILAR TO AN AUDIO CD THE COMPANY WHICH HAS YET TO BE NAMED WILL FOCUS ON THE PUBLISHING AND DISTRIBUTION OF SOFTWARE AND TO A LESSER EXTENT ON CREATING NEW PRODUCTS MR O'LEARY SAID IT WILL BE BASED IN NOVATO IN THE PROPOSED TRANSACTION SOFTKEY SHAREHOLDERS WOULD RECEIVE 36 WORDSTAR SHARES FOR EACH SOFTKEY SHARE BOTH COMPANIES' SHAREHOLDERS WILL VOTE ON THE PROPOSAL BY LATE AUGUST MR POSNER SAID SOFTKEY SELLS 79 TITLES IN EDUCATION TAXES GAMES AND OTHER SUBJECTS WORDSTAR HAS 23 TITLES IN WORD PROCESSING WRITING REFERENCE GRAPHICS AND OPTICAL RECOGNITION IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY WORDSTAR CLOSED AT 2375 UP 625 CENTS AND SOFTKEY CLOSED AT 6125 UNCHANGED BEFORE THE COMPANIES ANNOUNCED THE PROPOSED MERGER 9305140003 930514 AUTOS CHRYSLER'S MAN OF MANY PARTS CUTS COSTS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH THOMAS T STALLKAMP CHRYSLER CORP'S VICE PRESIDENT PURCHASING WEARS HIS WRISTWATCH ON HIS LEFT HAND HE LIKES FRENCH FRIES AND HE IS SAVING MILLIONS OF DOLLARS FOR CHRYSLER WITHOUT ENRAGING PARTS SUPPLIERS IN SHORT THE SLIGHTLY PUDGY 46YEAROLD FROM PENNSYLVANIA IS EVERYTHING THAT J IGNACIO LOPEZ DE ARRIORTUA ISN'T MR LOPEZ OF COURSE IS THE MERCURIAL SPANIARD WHO RAN PURCHASING AT GENERAL MOTORS CORP BEFORE JUMPING TO VOLKSWAGEN AG IN MARCH AT GM MR LOPEZ TRIED TO BAN FRIED FOODS WARNED OF THE END OF WESTERN CIVILIZATION AND HAD UNDERLINGS WEAR THEIR WATCHES ON THEIR RIGHT WRISTS TO SYMBOLIZE THE NEED FOR RADICAL CHANGE MORE SUBSTANTIVELY HE SENT EFFICIENCY TEAMS INTO SUPPLIER FACTORIES TORE UP CONTRACTS WITH SUPPLIERS AND DEMANDED DOUBLEDIGIT PRICE CUTS ALL IN A CRASH EFFORT TO REDUCE GM'S COSTS MEANWHILE THE LAIDBACK MR STALLKAMP HELPED CHRYSLER DO SOMETHING NO OTHER US AUTO MAKER COULD DO LAST YEAR MAKE MONEY AND HIS METHODS WHILE LESS FLAMBOYANT THAN MR LOPEZ'S ARE FAR MORE RADICAL CHRYSLER HAS ABANDONED UNILATERAL PRICE CUTS IT HAS ABANDONED COMPETITIVE BIDDING IT HAS STOPPED WRITING DETAILED SPECIFICATIONS FOR MANY PARTS INSTEAD IT RELIES ON SUPPLIERS TO DESIGN AND BUILD THE RIGHT PARTS AND TO FIND WAYS TO LOWER PRICES CHRYSLER AND THE SUPPLIER SPLIT THE SAVINGS AND THE SUPPLIER GETS A LONGTERM RELATIONSHIP CHRYSLER AND ITS SUPPLIERS ARE A VIRTUAL ENTERPRISE SAYS CHRYSLER PRESIDENT ROBERT A LUTZ MR STALLKAMP LIKENS IT TO A JAPANESESTYLE KEIRITSU SYSTEM BUT WITHOUT JOINT OWNERSHIP TWO HATS MR STALLKAMP A GRADUATE OF MIAMI UNIVERSITY OF OHIO IS ONE OF A HALFDOZEN BABYBOOMER VICE PRESIDENTS AT CHRYSLER WHO NOW RUN THE COMPANY'S DAYTODAY OPERATIONS LIKE MOST OF THE OTHERS HE WEARS TWO HATS UNDER CHRYSLER'S PLATFORM TEAM SYSTEM FOR DEVELOPING NEW PRODUCTS BESIDES RUNNING PURCHASING HE LEADS THE TEAM THAT DEVELOPED THE SUCCESSFUL NEW MIDSIZE SEDANS BUILT ON CHRYSLER'S LH PLATFORM OR CHASSIS HE LEARNED TRADITIONAL PURCHASING METHODS AT THE US COAST GUARD AND AT FORD MOTOR CO BUT SINCE HE WAS NAMED VICE PRESIDENT PURCHASING AT CHRYSLER IN JANUARY 1991 HE HAS STEADILY BEEN BEATING THE DRUM FOR CONTINUOUS IMPROVEMENT ONE EXAMPLE WHEN A SUPPLIER MEETS WITH A CHRYSLER PURCHASING AGENT CHANCES ARE HE'LL BE PRESENTED WITH A BAR GRAPH THAT CONTRASTS HIS COSTSAVING PERFORMANCE WITH THAT OF HIS COMPETITORS TO BE SURE MR STALLKAMP'S STRATEGY DOESN'T PREVENT ALL PROBLEMS LAST MONTH THE AUTO MAKER RECALLED ABOUT 80000 JEEP GRAND CHEROKEES BECAUSE OF A FAILED REAR LIFTGATE LATCH DESIGNED BY MAGNA INTERNATIONAL INC'S ATOMA SUBSIDIARY DOORS DROPPED OPEN WHILE JEEPS WERE BEING DRIVEN IT WAS A POTENTIALLY SERIOUS BLOW TO CHRYSLER BUT THE AUTO MAKER SAYS MAGNA QUICKLY IDENTIFIED AND FIXED THE PROBLEM AND WILL HELP PAY FOR THE RECALL THERE ARE WEAK SPOTS IN CHRYSLER'S APPROACH MR LOPEZ'S EFFICIENCY TEAMS PROMOTED LEANPRODUCTION METHODS IN PARTS PLANTS CHRYSLER BY CONTRAST HAS DONE LITTLE TO SPREAD THE LEANPRODUCTION GOSPEL FORD IS TAKING A MIDDLE GROUND IT WINS PRAISE FROM PARTS MAKERS FOR BEING ALMOST AS RESPONSIVE AS CHRYSLER AND IT IS GEARING UP FOR A MASSIVE EFFORT TO TEACH ITS US SUPPLIERS LEANPRODUCTION METHODS IN GENERAL SAYS MR STALLKAMP THE COOPERATIVE APPROACH IS THE QUICKEST ROUTE TO BETTER LOWERCOST PARTS ANOTHER MAGNA DIVISION FOR EXAMPLE RECENTLY DEVELOPED A PROPOSAL FOR TAKING OUT 100 OF FABRIC FROM EACH SET OF SEATS FOR CHRYSLER'S LOWEND MINIVANS NOW DO I GO BACK AND SAY GEE IF THEY CAN SAVE 100 TO ME DOES THAT MEAN THEY ARE SAVING 170 INTERNALLY' ASKS MR STALLKAMP NO I DON'T CARE I REALLY DON'T CARE THIS WASN'T ALWAYS THE CASE EVEN IN RECENT TIMES AS LATE AS 1989 CHRYSLER STILL PLAYED THE TRADITIONAL ADVERSARIAL GAME THAT YEAR CHRYSLER CHAIRMAN LEE IACOCCA THANKED SUPPLIERS FOR THEIR COOPERATION AT AN ANNUAL DINNER WHEN HE SAT DOWN A LOWERRANKING CHRYSLER EXECUTIVE STOOD UP AND TOLD THEM TO CUT THEIR PRICES 3 SO ROUTINE WERE THE MANDATED COST CUTS RECALLS JON MAPLES WHO IS MR STALLKAMP'S RIGHTHAND MAN THAT PARTSSUPPLIER CEO'S STOPPED ATTENDING SOME FUNCTIONS THEY'D JUST SEND THEIR SALES REPS BECAUSE THEY KNEW THEY'D GET INDIGESTION MR MAPLES SAYS THE FIRST HINTS OF CHANGE CAME IN THE EARLY 1980S FROM JAPANESE SUPPLIERS USED TO ASSUMING RESPONSIBILITY FOR COMPONENT DESIGN YAZAKI CORP OFFERED TO REDESIGN THE WIRING IN CHRYSLER'S CARS TO USE LESS COPPER HANDING OVER TECHNOLOGY IT HAD DEVELOPED FOR LEADING JAPANESE MANUFACTURERS CHRYSLER SAID NO THANKS THAT ATTITUDE DIDN'T LAST LONG CHRYSLER HAD A COMPELLING REASON FOR CHANGE IT WAS CALLED BANKRUPTCY SAYS RALPH REINS THE HEAD OF ALLIEDSIGNAL INC'S AUTOMOTIVE DIVISION IN 1989 AS LOSSES MOUNTED CHRYSLER PLEDGED TO BE NEWLY RESPONSIVE TO SUPPLIER SUGGESTIONS IT CALLED THE NEW APPROACH SCORE AN ACRONYM DERIVED FROM SUPPLIER COST REDUCTION EFFORT THE AUTO MAKER SAYS ITS SCORE PROGRAM RESULTED IN 4600 COSTSAVING IDEAS 60 OF WHICH HAVE BEEN IMPLEMENTED FOR A SAVINGS OF 235 MILLION THE IDEAS DON'T HAVE TO BE COMPLICATED TO BE EFFECTIVE DETROIT'S ACTIVE TOOL MANUFACTURING CO FOR EXAMPLE FOUND IT COULD REDESIGN A PART ON THE NEW DODGE RAM TO STAMP IT FROM ONE PIECE OF METAL INSTEAD OF TWO THAT REDUCES WASTE AND HANDLING COSTS ALLOWING ACTIVE TO PASS ON TO CHRYSLER SAVINGS EXCEEDING 850000 A YEAR WHEN YOU START TO SEE YOUR SUPPLIERS AS THE EXPERTS THEN THEY BECOME VALUABLE PARTNERS INSTEAD OF A SWITCHABLE COMMODITY SAYS MR STALLKAMP YOU HAVE TO HAVE SOME TECHNIQUE OTHER THAN JUST BLUDGEONING TO GET SOME EFFICIENCY OUT OF THEM 9305140002 930514 INTERNATIONAL DAIMLERBENZ'S 1STPERIOD NET FELL 96 AS GERMAN RECESSION HURT AUTO SALES BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT DAIMLERBENZ AG'S PROFIT AND SALES CRUMPLED IN THE FIRST QUARTER AS GERMANY'S AUTO INDUSTRY CAUGHT THE WORST OF THE COUNTRY'S DEEPENING RECESSION ITS COMPETITORS MEANWHILE CHIMED IN WITH SIMILARLY GLUM NEWS DAIMLER WHICH PLANS TO BECOME THE FIRST GERMAN STOCK TO BE LISTED ON THE NEW YORK STOCK EXCHANGE LATER THIS YEAR REPORTED THAT NET INCOME PLUNGED 96 TO 20 MILLION MARKS 124 MILLION FROM 480 MILLION MARKS IN THE YEAREARLIER QUARTER SALES AT THE COMPANY GERMANY'S LARGEST INDUSTRIAL GROUP FELL 19 TO 184 BILLION MARKS FROM 2279 BILLION MARKS DAIMLER'S RIVAL BAYERISCHE MOTOREN WERKE AG ALSO REPORTED LOWER SALES BMW'S SALES FELL 83 IN THE FIRST FOUR MONTHS OF 1993 TO 968 BILLION MARKS FROM 1055 BILLION MARKS A YEAR EARLIER PRODUCTION FELL 11 IN THE SAME PERIOD TO 175375 UNITS FROM 196326 UNITS BMW DIDN'T REPORT EARNINGS MEANWHILE VOLKSWAGEN AG WHICH PREVIOUSLY REPORTED A STAGGERING 125 BILLION MARK LOSS FOR THE FIRST QUARTER ANNOUNCED IN A SHAREHOLDERS LETTER ON THURSDAY THAT GROUP SALES FELL 76 IN THE PERIOD TO 196 BILLION MARKS TOTAL PRODUCTION OF ITS VOLKSWAGEN AUDI SEAT AND SKODA MODELS WAS CUT BY 21 TO 724949 UNITS IN WHAT THE COMPANY CALLED A CRISIS IN AUTOMOTIVE MARKETS VW SAID IN ITS REPORT THAT IT EXPECTED TO SHRINK ITS LOSS IN THE SECOND QUARTER FOLLOWED BY A RETURN TO PROFITABILITY IN THE SECOND HALF OF THE YEAR VW SAID GERMANY'S RECESSION HAS STIFFLED DEMAND FOR NEW CARS FORCING THE NATION'S AUTOMOTIVE SECTOR TO CUT PRODUCTION 24 TO 107 MILLION VEHICLES IN THE FIRST QUARTER FROM A YEAR EARLIER AS GERMANY'S RECESSION SPREADS TO THE REST OF EUROPE ANALYSTS EXPECT WESTERN EUROPE'S CAR MARKET TO SHRINK BY 10 THIS YEAR LED BY A 20 DECLINE IN GERMAN DEMAND DEMAND COLLAPSED IN GERMANY AND IS RETREATING IN THE REST OF WESTERN EUROPE SAID PETERRUEDIGER PUF DAIMLER'S CHIEF ECONOMIST ECONOMIC UNCERTAINTY AND HIGH INTEREST RATES BEGAN CUTTING INTO GERMAN NEW CAR DEMAND LATE LAST SUMMER HE SAID DAIMLER EXPECTS A MILD 4 RECOVERY IN THE GERMAN CAR MARKET NEXT YEAR IN ITS FIRSTQUARTER REPORT DAIMLER SAID THE PROBLEMS FOR GERMANY'S INDUSTRY IN THE PERIOD WERE COMPOUNDED BY THE JANUARY INTRODUCTION OF AN INCREASE IN THE NATION'S VALUEADDED TAX TO 15 FROM 14 PROMPTING MANY BUYERS TO ADVANCE PURCHASES IN THE FOURTH QUARTER DAIMLER'S MERCEDESBENZ AG AUTOMOTIVE UNIT WHICH ACCOUNTS FOR 65 OF GROUP SALES REPORTED THAT SALES DROPPED 24 TO 125 BILLION MARKS FROM 165 BILLION MARKS DAIMLER SAID ITS US FREIGHTLINER UNIT WAS A BRIGHT SPOT ABLE TO BOOST SALES BY 18 TO 21 BILLION MARKS AS THE US RECOVERY GATHERED STEAM DAIMLER'S OTHER UNITS INCLUDING AEG AG ELECTRONICS AND ITS DEUTSCHE AEROSPACE AG TECHNOLOGY GROUP ALSO POSTED DECLINING SALES AND ORDER BOOKINGS FOR THE FIRST QUARTER AS GERMANY'S RECESSION TOOK HOLD WITH GERMAN CONSUMER CONFIDENCE AT A 10YEAR LOW AND THE GERMAN ECONOMY NOT EXPECTED TO BEGIN RECOVERING UNTIL LATE 1993 OR IN 1994 ANALYSTS SEE LITTLE CHANCE FOR A REBOUND IN THE CRUCIAL GERMAN CAR MARKET AGGRAVATING THE AFFECTS OF THE RECESSION THE GERMAN AUTO SECTOR IS UNDERGOING A CORRECTION IN DEMAND AFTER THE POSTUNITY BOOMS OF 1991 AND 1992 IN RESPONSE TO THE FIRSTQUARTER RESULTS DB RESEARCH THE RESEARCH ARM OF DEUTSCHE BANK AG CROPPED ITS 1993 PERSHARE EARNINGS ESTIMATE FOR DAIMLER TO 14 MARKS FROM 18 MARKS IN 1992 PERSHARE EARNINGS TOTALED 2950 MARKS IN TRADING YESTERDAY IN FRANKFURT DAIMLER'S SHARES CLOSED AT 5583 MARKS 34626 UP FROM 558 MARKS 9305140001 930514 BUSINESS BRIEF CONSOLIDATED FREIGHTWAYS INC TEAMSTERSBACKED INITIATIVE IS DEFEATED BY SHAREHOLDERS CONSOLIDATED FREIGHTWAYS INC SAID SHAREHOLDERS VOTED DOWN A PROPOSAL SPONSORED BY THE TEAMSTERS UNION TO CHANGE THE WAY DIRECTORS ARE ELECTED THE PROPOSAL WOULD HAVE REQUIRED ALL BOARD MEMBERS TO FACE ELECTION AT THE SAME TIME RATHER THAN AT STAGGERED INTERVALS SAID JAMES ALLEN CONSOLIDATED'S VICE PRESIDENT IT RECEIVED 115 MILLION VOTES OUT OF 30 MILLION VOTES CAST HE SAID MR ALLEN SAID THE PROPOSAL WAS AN EFFORT BY THE TEAMSTERS TO EXERT UNION PRESSURE ON THE PALO ALTO CALIF TRANSPORTATION COMPANY THE TEAMSTERS IN A STATEMENT SAID THE PROPOSAL WOULD HAVE MADE DIRECTORS MORE ACCOUNTABLE TO THE SHAREHOLDERS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CONSOLIDATED CLOSED AT 18 DOWN 25 CENTS 9305140095 930412 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST WEDNESDAY'S CLOSE N/ANOT AVAILABLE OR NOT APPLICABLE VCONVERTED AT COMMERCIAL RAND RATE ZNOT TRADING ON ANY EXCHANGE