VAIL COLO FOR THE FIRST TIME ALL DAY KNEE SURGEON J RICHARD STEADMAN IS NERVOUS IT'S 630 PM AND DR STEADMAN HAS JUST FINISHED 11 HOURS OF SURGERY ON EIGHT PATIENTS NONE OF IT HAS FLUSTERED HIM INCLUDING A COMPLEX 3 1/2HOUR LIGAMENT RECONSTRUCTION FOR A YOUNG SKIER WHO WAS FLOWN IN FROM VERMONT TO SEE HIM BUT AS DR STEADMAN SLIPS OFF HIS BLUE SURGICAL MASK AND SETTLES INTO HIS OFFICE CHAIR HE WORRIES ABOUT WAYS THAT THE HEALTHCARE REFORM DRIVE MIGHT SHAKE UP HIS PRACTICE WHAT DO YOU THINK PRESIDENT CLINTON IS GOING TO DO DR STEADMAN REPEATEDLY ASKS A VISITOR THEN HESITANTLY THE 55YEAROLD ORTHOPEDIST STARTS TO ANSWER HIS OWN QUESTION IF WE END UP WITH LIMITS ON WHAT A DOCTOR CAN CHARGE IT HAS TO BRING DOWN THE THINGS THAT I CAN DO FOR A PATIENT IT WOULD BE A VERY TOUGH BLOW I'M SURE I'D STILL WORK AS HARD BUT I WOULDN'T ENJOY IT THESE ARE JARRING TIMES FOR AMERICA'S ELITE DOCTORS FOR YEARS PHYSICIANS LIKE DR STEADMAN HAVE ENJOYED WIDE FREEDOM TO RUN THEIR PRACTICES AS THEY WANT AND BECOME MILLIONAIRES IN THE PROCESS COSTS ASSOCIATED WITH TOPFLIGHT HEALTH CARE HAVE LARGELY BEEN SHRUGGED OFF AS GOVERNMENT AND PRIVATE INSURERS REIMBURSED EVERRISING BILLS NOW HIGHCOST MEDICINE IS UNDER ATTACK INSURERS AREN'T PASSIVELY PAYING EVERY MEDICAL BILL ANYMORE THEY ARE CHALLENGING DOCTORS' FEES AND EVEN LIMITING PATIENTS' ABILITY TO SEE THE MOST EXPENSIVE DOCTORS AMONG THE FAVORITE TARGETS ARE SURGICAL SPECIALISTS WHOSE ANNUAL NET INCOME AVERAGES MORE THAN 240000 NEARLY 50 ABOVE MEDIAN DOCTOR PAY YET THE PUBLIC DESIRE TO REIN IN RUNAWAY COSTS IS TEMPERED BY RESPECT EVEN REVERENCE FOR TOP DOCTORS' SKILLS WHEN THE WHITE HOUSE TASK FORCE ON HEALTHCARE REFORM HINTED THAT IT MIGHT SEEK TO RESTRAIN DOCTORS' INCOMES THE ADMINISTRATION'S SPOKESMAN ON HEALTH CARE ROBERT BOORSTIN HURRIED THE NEXT DAY TO REASSURE WE AREN'T LOOKING TO DO ANYTHING TO THE SYSTEM WHERE IT WORKS HE SAID IN VAIL THIS TUGOFWAR BETWEEN MEDICAL IDEALS AND COSTCUTTING REALITIES IS CONSTANTLY BEING PLAYED OUT THIS SKI TOWN HAS BECOME A KNEESURGERY CAPITAL ATTRACTING INJURED SKIERS PRO ATHLETES AND CORPORATE EXECUTIVES A WEEKLONG OBSERVATION OF DR STEADMAN'S PRACTICE PROVIDES A CASE STUDY OF HOW TOPTIER MEDICINE IS PRACTICED AND WHY ITS COSTS ARE RISING BEYOND THE REACH OF MANY AMERICANS MUCH OF THE TIME DR STEADMAN COMES ACROSS AS A SELFLESS HEALER INTERESTED ONLY IN HIS PATIENTS' WELLBEING HIS OFFICE IS PACKED WITH TESTIMONIALS FROM FORMER PATIENTS INCLUDING QUARTERBACK DAN MARINO SKIER MARC GIRARDELLI AND TENNIS PLAYER MARTINA NAVRATILOVA THE MOST POIGNANT IS A SINGLE SENTENCE FROM GERMAN SOCCER STAR LOTHAR MATTHAUS THANK YOU FOR YOUR SAVING HANDS WHEN HE EXAMINES PATIENTS DR STEADMAN IS RELENTLESSLY CHEERFUL SAVING HIS WARMEST REMARKS FOR FRIGHTENED CHILDREN I'M REAL OPTIMISTIC AND YOU SHOULD BE TOO HE TELLS A TEENAGE BOY WITH SEVERE CARTILAGE DAMAGE ON SURGERY DAYS THE DOCTOR CHECKS IN AT 730 AM AND WORKS TILL 6 PM OR LATER PAUSING ONLY TO GULP DOWN A FEW FORKFULS OF LASAGNA DURING A NINEMINUTE LUNCH BREAK AS PATIENTS WHIZ IN AND OUT IT'S CLEAR THAT DR STEADMAN IS ALSO A BUSINESSMAN THROUGHOUT HIS OFFICES SMALL SIGNS TELL AIDES DOCUMENT WHAT YOU DO CHARGE WHAT YOU DOCUMENT IF YOU DIDN'T DOCUMENT IT YOU DIDN'T DO IT DR STEADMAN SAYS THAT HE AND A PARTNER SHOULDER SPECIALIST RICHARD HAWKINS GROSSED NEARLY 35 MILLION LAST YEAR AFTER EXPENSES INCLUDING SALARIES FOR 24 EMPLOYEES THE TWO MEN SPLIT UP PROFITS OF 14 MILLION WITH DR STEADMAN GETTING THE LARGER SHARE IT PUTS HIM IN THE TOP 1 OF US DOCTORS BY INCOME FOR HIS MOST COMMON KNEE SURGERY FIXING A TEAR IN WHAT'S CALLED THE ANTERIOR CRUCIATE LIGAMENT DR STEADMAN CHARGES 5000 HOSPITAL EXPENSES USUALLY ADD 10000 MORE TO THE BILL THAT PUTS HIM AT ODDS WITH COLORADO BLUE CROSS WHICH FIGURES A SURGEON'S FEE FOR THE PROCEDURE SHOULD BE JUST 2600 DR STEADMAN IS OFF IN HIS OWN LEAGUE IN TERMS OF PRICING SAYS GEORGE KENDAL HEAD OF THE HEALTH SERVICES DEPARTMENT AT COLORADO BLUE CROSS PATIENTS IN CERTAIN MANAGEDCARE PROGRAMS IT RUNS CAN'T SEE DR STEADMAN IF THEY WANT THEIR INSURANCE TO COVER THE COSTS DR STEADMAN BRISTLES AT ANY SUGGESTION THAT HIS RATES ARE TOO HIGH IF YOU CAN DO SOMETHING FASTER AND BETTER THAN MOST PEOPLE SHOULDN'T YOU BE COMPENSATED FOR IT HE ASKS WITH AN EDGE TO HIS VOICE TO ME IT WOULD BE A SHAME IF THE SYSTEM REWARDED MEDIOCRITY HE NOTES THAT LAWYERS AND EXECUTIVES AREN'T SUBJECT TO INCOME CAPS EVEN THOUGH SOME EARN MUCH MORE THAN 1 MILLION A YEAR THERE'S NO MODEL FOR SUCH RESTRICTIONS IN ANY OTHER PART OF FREE ENTERPRISE HE DECLARES BUT THERE ARE FEW MODELS IN CAPITALISM FOR THE PRICING SYSTEM EMPLOYED BY PHYSICIANS SUCH AS DR STEADMAN NEW TECHNOLOGY HAS VASTLY SIMPLIFIED AND REDUCED THE TIME HE REQUIRES FOR EACH OPERATION ENABLING HIM TO COMFORTABLY DO SEVERAL SURGERIES IN THE TIME HE USED TO NEED FOR ONE YET HIS FEES HAVE GONE UP NOT DOWN FOR NOW PLENTY OF PATIENTS SEE DR STEADMAN ON HIS TERMS EACH YEAR HE EXAMINES ABOUT 2500 PEOPLE OPERATING ON ABOUT 600 THAT'S ABOUT TWICE THE WORK LOAD OF THE TYPICAL KNEE SURGEON MOST PATIENTS HAVE GENEROUS ENOUGH INSURANCE OR ARE RICH ENOUGH THAT BIG BILLS DON'T TROUBLE THEM ON A RECENT TUESDAY AN EARLY VISITOR IS JIM PETERSEN A FORMER PRO BASKETBALL PLAYER FOR THE GOLDEN STATE WARRIORS A MAJOR PART OF MR PETERSEN'S KNEE CARTILAGE IS WORN OUT ALTHOUGH HE CAN RUN UP AND DOWN THE COURT WITH NO TROUBLE HE CAN'T ACCELERATE TOWARD THE BASKET WITHOUT SEARING KNEE PAIN DR STEADMAN SUGGESTS MICROFRACTURE A RELATIVELY NEW 2500 PROCEDURE IN WHICH HE WILL CREATE TINY HOLES IN A KNEE BONE TO INDUCE SCAR TISSUE TO FORM THAT TISSUE WILL APPROXIMATE THE FUNCTION OF OLD LOST CARTILAGE HE SAYS IT'S AN EXPERIMENTAL PROCEDURE THAT MANY INSURERS WON'T COVER BUT MR PETERSEN'S MEDICAL BILLS ARE BEING PICKED UP BY THE WARRIORS AND COST IS THE LAST THING ON HIS MIND DO YOU REALLY RECOMMEND THIS MR PETERSEN ANXIOUSLY ASKS YEAH DR STEADMAN REPLIES YOU'RE LOOKING AT LIVING WITH WHAT YOU HAVE OR TRYING TO DO SOMETHING TO IMPROVE IT BESIDES DR STEADMAN SAYS HE PERFORMED THE SAME SURGERY ON ANOTHER PRO BASKETBALL PLAYER ROY HINSON AND IT WORKED THAT GREATLY RELIEVES MR PETERSEN HE ASKS FOR MR HINSON'S PHONE NUMBER AND SAYS HE WILL RETURN FOR SURGERY IF THE OTHER PLAYER ENCOURAGES HIM A FEW MOMENTS LATER HOWEVER DR STEADMAN CONFRONTS A FINANCIALLY TOUGHER CASE A LOCAL SKI INSTRUCTOR IS HAVING SMALL PROBLEMS A MONTH AFTER HER TORN KNEE LIGAMENT WAS REBUILT HER SURGERY AND REHABILITATION ARE BEING PAID FOR UNDER COLORADO WORKERS' COMPENSATION BUT DR STEADMAN IS ALLOWED TO CHARGE JUST 202710 FAR BELOW HIS USUAL FEE AFTER PAUSING TO MAKE SMALL TALK DR STEADMAN SUGGESTS SOME CHANGES IN HER EXERCISE ROUTINE AND SENDS HER ON HER WAY LATER HE EXPLAINS THAT HE USUALLY DOESN'T TAKE SUCH CASES BUT MADE AN EXCEPTION BECAUSE HE HAD TREATED HER BEFORE MOST LOCAL PATIENTS WITH LIMITED INSURANCE DON'T GET TO SEE DR STEADMAN INSTEAD THEY VISIT JOHN GOTTLIEB A KNEE SURGEON WHO RUNS A WELLREGARDED BUT SPARTAN CLINIC TWO FLOORS BELOW DR STEADMAN'S OFFICES DR GOTTLIEB'S FEES ARE 40 LOWER AND HIS VIEW OF SURGERY IS A LOT MORE PROSAIC IT'S LIKE DIGGING DITCHES HE WRYLY REMARKS YOU DO IT SO MANY TIMES AND IT BECOMES ROUTINE AT DR STEADMAN'S SIXEXAMININGROOM CLINIC THE HIGHER COST BUYS PATIENTS SOMETHING THEY CRAVE EXTRA WARM FRIENDLY ATTENTION WHEN A MIDDLEAGED EXECUTIVE FRETS THAT SURGERY WILL REQUIRE HIM TO WEAR A KNEE BRACE WHEN PLAYING GOLF DR STEADMAN WINKS AND TELLS HIM I WOULDN'T WORRY YOU'LL GET MORE STROKES AS A HANDICAP AND IT OUGHT TO IMPROVE YOUR GAME FOR THE RIGHT PATIENT DR STEADMAN GOES TO EVEN GREATER LENGTHS A FEW YEARS AGO HE ACCOMPANIED INVESTMENT BANKER WARREN HELLMAN ON A JAUNT THROUGH TOWN THE DAY AFTER HIS SURGERY JUST SO MR HELLMAN COULD KEEP INTACT HIS RECORD OF RUNNING AT LEAST FIVE MILES EVERY DAY BY ALL ACCOUNTS MR HELLMAN WAS A GRISLY SIGHT HOBBLING ALONG IN A HUGE BRACE WITH A BLOODY BANDAGE AROUND HIS KNEE BUT MR HELLMAN WAS THRILLED WITH HIS PROGRESS AND DR STEADMAN KEPT HIS DOUBTS TO HIMSELF ALL HE WILL SAY NOW IS I'M GLAD A DOG DIDN'T CHASE US MR HELLMAN TURNED OUT TO BE A VALUABLE CONTACT TWO YEARS AGO HE HELPED ARRANGE 35 MILLION OF VENTURE CAPITAL FINANCING FOR REGEN BIOLOGICS INC A SMALL COMPANY TRYING TO DEVELOP SYNTHETIC CARTILAGE FROM CATTLE TENDONS DR STEADMAN IS COCHAIRMAN OF REGEN WITH A 15 STAKE AND HE HOPES TO TAKE THE COMPANY PUBLIC SOMEDAY IF TESTS OF ITS PRODUCTS GO WELL MOVING IN SUCH WEALTHY CIRCLES IS A BIG CHANGE FROM DR STEADMAN'S BEGINNINGS HE GREW UP IN SHERMAN TEXAS POP 3000 AND ENTERED TEXAS A&M ON A FOOTBALL SCHOLARSHIP PLAYING BRIEFLY AS A LINEMAN FOR LEGENDARY COACH PAUL BEAR BRYANT IN THE LATE 1950S BUT HE COULDN'T CRACK THE STARTING LINEUP AND HIS FAMILY ENCOURAGED HIM TO CONSIDER A CAREER IN MEDICINE AT THE START SURGERY WASN'T LUCRATIVE AT ALL HE EARNED JUST 200 A MONTH AS A RESIDENT AT CHARITY HOSPITAL IN NEW ORLEANS IN THE LATE 1960S AND 20000 IN HIS FIRST YEAR OF PRIVATE PRACTICE IN SOUTH LAKE TAHOE CALIF IN 1970 THEN HE HAD TWO LUCKY BREAKS SO TO SPEAK THE FIRST WAS THE RAPID DEVELOPMENT OF ARTHROSCOPIC SURGERY IN WHICH NARROW TUBES ARE INSERTED INTO A DAMAGED AREA THEY PROVIDE DELICATE ENTRY POINTS FOR A TINY CAMERA AND SURGICAL INSTRUMENTS SURGEONS QUICKLY FOUND THAT ARTHROSCOPY LET THEM OPERATE FASTER MORE PRECISELY AND WITH MUCH LESS BLEEDING A WIDE RANGE OF KNEE AILMENTS ONCE VIRTUALLY UNTREATABLE BECAME CANDIDATES FOR QUICK RELATIVELY MINOR SURGERY I WAS REALLY FORTUNATE TO START OUT WHEN I DID DR STEADMAN SAYS TWENTY YEARS AGO HIS MOST COMMON FORM OF SURGERY REPAIRING A TEAR IN THE MENISCUS CARTILAGE IN A PERSON'S KNEE WAS A TWOHOUR OPERATION THAT INVOLVED A BIG ENTRY INCISION TODAY IT CAN BE DONE IN A 30MINUTE ARTHROSCOPIC PROCEDURE WITH INCISIONS SO SMALL THEY DON'T EVEN NEED STITCHES DR STEADMAN'S OTHER STROKE OF LUCK CAME WHEN HE BEGAN TREATING MEMBERS OF THE US SKI TEAM IN 1973 HE FOUND HE HAD GOOD RAPPORT WITH ATHLETES THEY'RE VERY MOTIVATED ON THEIR REHAB HE SAYS THEY ALSO PROVED TO BE REGULAR CUSTOMERS ONE GOLD MEDALIST SKIER CINDY NELSON SAYS SHE HAS UNDERGONE NINE SURGERIES BY DR STEADMAN ATHLETES' COMEBACKS AFTER INJURIES TURNED OUT TO BE GREAT ADVERTISING ONE OF DR STEADMAN'S FAVORITE MEMORIES WAS THE RECOVERY OF SKIER PHIL MAHRE FROM ANKLE SURGERY IN 1979 AFTER HIS INJURY NO ONE FELT HE COULD RETURN TO COMPETITIVE SKIING DR STEADMAN RECALLS BUT MR MAHRE WON A SILVER MEDAL AT THE 1980 WINTER OLYMPICS AND THERE IN THE STANDS CHEERING WILDLY WAS HIS SURGEON DR STEADMAN IN 1984 MR MAHRE WON THE GOLD AS WORD OF SUCH SUCCESSES TRAVELED WEALTHY EXECUTIVES BEGAN BOOKING DR STEADMAN FOR KNEE SURGERY AMONG THEM WAS GEORGE GILLETT WHO FOR A TIME OWNED THE VAIL SKI RESORT MR GILLETT WENT UNDER THE KNIFE IN 1986 FOR AN UNUSUAL SKI INJURY HE FELL GETTING OFF A LIFT AND FOUND HIMSELF ENCHANTED BY WHAT DR STEADMAN COULD DO IN A SERIES OF TALKS MR GILLETT URGED DR STEADMAN TO RELOCATE TO VAIL FROM LAKE TAHOE ON THE BELIEF THAT BEING HOST TO A FAMOUS KNEE SURGEON WOULD ADD TO THE TOWN'S LUSTER DR STEADMAN RESISTED AT FIRST BUT MR GILLETT AND LOCAL HOSPITAL OFFICIALS KEPT SWEETENING THE TERMS UNTIL THEY CREATED A FINANCIAL PACKAGE THAT BECAME THE TALK OF THE TOWN WE REALLY COURTED DICK STEADMAN TO COME HERE RECALLS MICHAEL SHANNON A FORMER AIDE TO MR GILLETT WE WERE TRYING TO CREATE AN EMPIRE AROUND HIM FOR THE GOOD OF THE COMMUNITY FOR STARTERS VAIL'S SMALL HOSPITAL SOLD 11 MILLION OF STEADMAN BONDS TO FINANCE AN ANNEX IN WHICH THE DOCTOR COULD WORK HIS ROLE WAS CONSIDERED SO CRUCIAL THAT THE HOSPITAL BOUGHT A 3 MILLION LIFEINSURANCE POLICY IN HIS NAME MEANWHILE THE RESORT IN EFFECT GUARANTEED DR STEADMAN A MINIMUM OF 2 MILLION A YEAR IN REVENUE PROMISING TO COVER ANY DROP BELOW THAT AMOUNT DOLLAR FOR DOLLAR IN AN IMPORTANT GESTURE THE SKI RESORT AND HOSPITAL AGREED TO HELP SUBSIDIZE A STEADMAN SPORTS MEDICINE FOUNDATION TO BE BASED IN THE BASEMENT OF THE VAIL HOSPITAL THE FOUNDATION WITH A 1 MILLION ANNUAL BUDGET UNDERWRITES RESEARCH ON NEW WAYS TO TREAT SPORTS INJURIES THE FOUNDATION DOESN'T MAKE MONEY AND IN FACT COUNTS ON 150000 A YEAR OR MORE IN DONATIONS FROM DR STEADMAN TO MAKE ENDS MEET BUT IT DOES A LOT TO HELP HIS PRESTIGE IN ACADEMIC MEDICAL CIRCLES WHICH AT THIS STAGE OF HIS CAREER MATTERS TO HIM AS A CLINICAL DOCTOR I HANDLE 500 TO 600 CASES A YEAR HE SAYS BUT IN RESEARCH IF WE HIT IT RIGHT WE COULD INFLUENCE MILLIONS OF CASES THE ULTIMATE TEST OF DR STEADMAN'S SKILLS THOUGH COMES EVERY MONDAY WEDNESDAY AND FRIDAY IN THE OPERATING ROOM HE TYPICALLY BOOKS FIVE TO 10 CASES EACH SURGERY DAY SAVING THE MOST COMPLICATED FOR LAST IT'S SOMETHING TO LOOK FORWARD TO HE SAYS IN THE OPERATING ROOM DR STEADMAN USES SEVERAL ASSISTANTS TO MAXIMIZE HIS IMPACT HIS SURGICAL NURSE SHIRLEY CARLSON SCRUBS DOWN PATIENTS AND PREPARES THEM FOR THE OPERATION ARTHROSCOPIC TUBES ARE INSERTED BY ONE OF FIVE YOUNG DOCTORS WHO ASSIST DRS STEADMAN AND HAWKINS AS PART OF A ONEYEAR FELLOWSHIP AT THE CLINIC MS CARLSON AND THE FELLOWS ARE ON DR STEADMAN'S PAYROLL ON ONE RECENT DAY DR STEADMAN AND MARTIN BOUBLIK A 31YEAROLD FELLOW JOINTLY ZIP THROUGH FIVE KNEE SURGERIES DR STEADMAN MANIPULATES TINY CUTTING AND SHAVING INSTRUMENTS THROUGH THE ARTHROSCOPIC TUBES WHILE DR BOUBLIK HOLDS THE CAMERA STEADY IN ANOTHER TUBE BOTH MEN FOCUS INTENTLY ON A LARGE VIDEO VIEWING SCREEN IT'S EASIER TO FOLLOW THE OPERATION ON THE SCREEN THAN TO PEER DOWN THE TUBES PERIODICALLY THEY SWITCH ROLES AND DR BOUBLIK DOES THE SURGERY WHILE DR STEADMAN COACHES HIM PATIENTS ARE NUMB BUT AWAKE AND DR STEADMAN PROVIDES AN EASYGOING PLAYBYPLAY COMMENTARY ON HIS WORK HE ANNOUNCES INTERMISSION AND ASKS PATIENTS IF THEY'VE LEARNED ENOUGH TO DO THE OPERATION THEMSELVES WHEN THE SURGERY IS DONE HE MOVES TO ANOTHER OPERATING ROOM AND ON TO THE NEXT PATIENT WHILE HIS ASSISTANT AND MS CARLSON TIDY UP THE FIRST PATIENT EN ROUTE TO THE RECOVERY ROOM AS A RESULT DR STEADMAN TYPICALLY IS PRESENT FOR ONLY ABOUT 75 MINUTES OF A TWOHOUR OPERATION ALTHOUGH DR STEADMAN TALKS WITH GREAT PRIDE ABOUT HOW MUCH HIS TEAM HELPS HIM HE REAPS BY FAR THE LARGEST SHARE OF HIS PRACTICE'S INCOME THE YOUNG DOCTORS ASSISTING HIM EARN 42000 A YEAR IT IS A SMALL FRACTION OF WHAT THEY COULD MAKE ON THEIR OWN BUT A YEAR WITH DR STEADMAN IS SEEN AS VALUABLE TRAINING AND 200 DOCTORS APPLY EACH YEAR FOR HIS FIVE SLOTS UNLIKE MANY SURGEONS DR STEADMAN SAYS HIS PRACTICE HASN'T BEEN SERIOUSLY TROUBLED BY MALPRACTICE SUITS OR THE COST OF INSURING AGAINST THEM IN 23 YEARS OF SURGERY HE SAYS HE HAS NEVER LOST OR SETTLED A MALPRACTICE SUIT HE SAYS HIS LIABILITY INSURANCE COSTS SOMEWHAT LESS THAN 100000 A YEAR ADDING THAT HIS RATES DROPPED IN 1990 WHEN HE MOVED TO COLORADO FROM CALIFORNIA WITH HIS OWN NET INCOME APPROACHING 1 MILLION A YEAR DR STEADMAN CAN ENJOY THE GOOD LIFE IN VAIL HE LIVES WITH HIS WIFE IN A 650000 HILLSIDE HOME OVERLOOKING SKI TRAILS AND DRIVES AN EXPENSIVE JAPANESE SPORTS CAR HIS INVESTMENT PORTFOLIO INCLUDES SEVERAL CONDOMINIUM PROPERTIES IN COLORADO AND HIS SOCIAL LIFE INCLUDES TRIPS TO THE SUPER BOWL WITH FORMER BUSH CABINET SECRETARY JACK KEMP A FRIEND AND STEADMAN FOUNDATION DIRECTOR DR STEADMAN ALSO COLLECTS MORE THAN 100000 A YEAR IN LICENSING AND ROYALTY FEES FROM VARIOUS SUPPLY COMPANIES MAKERS OF MEDICAL EQUIPMENT LOVE TO SIGN UP TOP DOCTORS AS CONSULTANTS ALMOST IN THE WAY SNEAKER COMPANIES PURSUE SPORTS STARS DR STEADMAN'S TWO MAIN CONTRACTS ARE WITH LINVATEC CORP A SURGICALINSTRUMENT MAKER AND WITH INNOVATION SPORTS INC A MAKER OF KNEE BRACES THE AMERICAN MEDICAL ASSOCIATION DOESN'T BAR DOCTORS FROM COLLECTING SUCH FEES AND DR STEADMAN SAYS HE HAS HELPED DEVELOP ENOUGH GOOD PRODUCTS TO JUSTIFY HIS ROYALTIES BUT THE RIGHT WAY TO BALANCE SUCH CONTRACTS WITH PATIENTS' INTERESTS IS AN OFTDEBATED ISSUE IN MEDICAL CIRCLES IT'S HARD TO SAY HE'S BEING OBJECTIVE IF HE'S RECEIVING FINANCIAL BENEFITS FROM EVERY BRACE THAT PATIENTS GET SAYS EZEKIEL EMANUEL A MEDICAL ETHICIST AT HARVARD MEDICAL SCHOOL DR STEADMAN SAYS HE DONATES MOST OF HIS ROYALTIES TO HIS FOUNDATION AND GENERALLY TELLS PATIENTS IF HE'S RECOMMENDING A BRACE IN WHICH HE HAS A FINANCIAL INTEREST BUT HE IS UNCOMFORTABLE WITH THE IDEA OF FORGOING SUCH INCOME IN AN EFFORT TO AVOID CONFLICTS OF INTEREST I GET UP AT 5 AM TO WORK ON SOME OF THESE PROJECTS HE SAYS AND I'VE ALWAYS FELT THAT IF YOU DO SOMETHING THAT DESERVES A REWARD YOU SHOULD GET IT MORE GENERALLY DR STEADMAN SAYS HE IS A LITTLE FRUSTRATED WITH A WORLD IN WHICH MORE AND MORE OUTSIDE ENTITIES WANT TO LOOK OVER HIS SHOULDER AS HE PRACTICES MEDICINE INSURANCE COMPANIES INCREASINGLY INSIST ON REVIEWING COSTLY PROCEDURES AHEAD OF TIME A STEP THAT CAN BE BURDENSOME TO HIM MORE AND MORE PATIENTS ARE IN MANAGEDCARE PROGRAMS IN WHICH THEIR HEALTHPLAN ADMINISTRATOR HAS A MAJOR SAY IN WHICH DOCTOR THEY CHOOSE AND HOW THEY GET TREATED I KNOW WE NEED TO MAKE CHANGES IN OUR HEALTHCARE SYSTEM DR STEADMAN SAYS BUT HE ADDS MY GOAL FROM THE START HAS BEEN TO PRACTICE THE BEST MEDICINE THAT I COULD AND TO LET THE CHIPS FALL WHERE THEY MAY IN HIS IDEAL WORLD DOCTORS' EARNINGS KEEP RISING AND PHYSICIANS REINVEST THE MONEY INTO THEIR PRACTICES THUS HELPING TO UPGRADE MEDICAL CARE IT WOULD BE A SAD MOMENT IF YOU NO LONGER COULD DO THAT DR STEADMAN SAYS SEE RELATED LETTERS LETTERS TO THE EDITOR SOM DOCTORS ARE WORTH THEIR FORTUNES WSJ MAY 14 1993 9304080093 YY93 MM05 9305130178 930513 WHO'S NEWS AMETEK INC AMETEK INC PAOLI PA JOHN J MOLINELLI 46 YEARS OLD WAS ELECTED A VICE PRESIDENT OF THIS INDUSTRIAL MANUFACTURER HE CONTINUES AS COMPTROLLER 9305130177 930513 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG LISTEN TO A DEDICATED COMPUTER HOBBYIST A PERSON WHO SPENDS HOURS A DAY USING A MODEM TO EXCHANGE MESSAGES AND DATA WITH OTHER TECHIES AND PRETTY SOON IF YOU CAN PENETRATE THE JARGON YOU'LL HEAR HIM OR HER GUSH ABOUT SOMETHING CALLED THE INTERNET A GIANT NETWORK OF NETWORKS THAT LINKS MILLIONS OF COMPUTERS AROUND THE WORLD PICK UP SOME OF THE MANY RECENT NEWS ARTICLES ABOUT THE TRENDY IDEA OF BUILDING A NATIONAL INFORMATION HIGHWAY TO LINK HOMES AND BUSINESSES AND YOU'RE LIKELY TO FIND THE INTERNET PORTRAYED AS TODAY'S PROTOTYPE OF THAT DATA THOROUGHFARE TALK TO HIGHTECH POLITICAL ACTIVISTS AND YOU'LL HEAR THE INTERNET DESCRIBED AS A KIND OF NATIONAL TOWN HALL THE CENTER OF AN EMERGING DIGITAL DEMOCRACY SO JUST WHAT IS THE INTERNET THAT'S NOT AN EASY QUESTION TO ANSWER SUCCINCTLY BECAUSE THE THING IS TECHNICAL DESIGNED BY TECHIES FOR TECHIES WHAT FOLLOWS IS A GENERAL SIMPLIFIED PRIMER ON THE INTERNET THE INTERNET MAY BE USED BY MILLIONS OF PEOPLE BUT IT'S NOT A MASS MEDIUM IT'S A FORMLESS MOSTLY UNREGULATED SYSTEM FOR LINKING COMPUTERS FOR NOW IT IS USEFUL MAINLY TO TECHNICALLY ADEPT FOLKS AT GOVERNMENT AGENCIES COLLEGES AND UNIVERSITIES AND SOME LARGE COMPANIES MOST OTHER COMPUTER USERS IN OTHER WORDS MOST PEOPLE CAN'T GAIN ACCESS TO IT WITHOUT GREAT EFFORT AND SOME COST AND ONCE THEY ENTER THE NET THEY MUST DEAL WITH A SYSTEM OF COMMANDS AND ACRONYMS THAT ISN'T EASY TO LEARN THE WHOLE THING WAS STARTED BY THE PENTAGON IN 1969 AS A WAY TO LINK OVER DEDICATED PHONE LINES LARGE COMPUTER DATABASES THAT COULD BE SHARED BY MILITARY AND GOVERNMENT OFFICIALS AND ACADEMIC RESEARCHERS TODAY A BIG CHUNK OF THE SYSTEM IS RUN BY THE NATIONAL SCIENCE FOUNDATION BUT THERE ARE MANY THOUSANDS OF SERVERS BIG COMPUTERS ALL OVER THE WORLD HOLDING DATA ON MANY SUBJECTS LINKED THROUGH THE INTERNET IN RECENT YEARS THE INTERNET HAS GROWN EXPLOSIVELY AS BUSINESSES HAVE BEGUN TO TIE THEIR COMPUTERS INTO IT DESPITE A LITTLEENFORCED RULE AGAINST COMMERCIAL USE AND WAYS HAVE BEEN FOUND TO LET PEOPLE OUTSIDE THE GOVERNMENT AND COLLEGES DIAL INTO THE INTERNET OVER REGULAR PHONE LINES UNLIKE COMMERCIAL COMPUTER SERVICES SUCH AS COMPUSERVE OR AMERICA ONLINE THE INTERNET ISN'T REALLY OWNED BY ANYONE OR RUN BY ANYONE THERE ISN'T EVEN A COMPLETE UNIFIED LIST OF ALL THE DATABASES AVAILABLE OR OF ALL THE PEOPLE ON THE INTERNET SO FINDING THE RIGHT DATA FILE OR PERSON CAN BE A CHORE PERHAPS THE MOST COMMON USE OF THE INTERNET IS ELECTRONIC MAIL STUDENTS AND FACULTY MEMBERS AT COLLEGES AROUND THE WORLD ROUTINELY SEND AND RECEIVE EMAIL OVER THE INTERNET AND PEOPLE WHO USE CORPORATE EMAIL SYSTEMS OR COMMERCIAL SERVICES LIKE MCI MAIL CAN REACH PEOPLE ON CAMPUSES AND EACH OTHER BY USING INTERNET ADDRESSES A SORT OF UNIVERSAL CODE THESE EMAIL ADDRESSES GENERALLY LOOK LIKE THIS USERNAME@LOCATIONXXX IN THIS EXAMPLE USERNAME REFERS TO A PERSON'S CODE NAME OR ADDRESS AND LOCATIONXXX TO THE SERVER OR EMAIL SYSTEM ON WHICH HIS OR HER ELECTRONIC MAILBOX RESIDES FOR INSTANCE MY MAILBOX ON AMERICA ONLINE CAN BE REACHED BY INTERNET USERS OR BY MEMBERS OF OTHER COMMERCIAL SERVICES THROUGH INTERNET BY USING THE ADDRESS WALTM@AOL COM COM MEANS AMERICA ONLINE IS A COMMERCIAL SERVER ON THE INTERNET COLLEGE ADDRESSES HAVE EDU AT THE END AND GOVERNMENT SITES END WITH GOV A SECOND MAJOR USE OF THE INTERNET IS THE POSTING OF PUBLIC MESSAGES IN ELECTRONIC DISCUSSION GROUPS CALLED NEWS GROUPS ON A SYSTEM CALLED USENET REACHED THROUGH THE INTERNET THESE ARE LIKE BULLETIN BOARDS OR FORUMS ON AN ARRAY OF SUBJECTS FROM TV SHOWS TO POLITICS TO JOKES THE THIRD PRIMARY USE OF THE INTERNET IS TO TAP INTO LARGE COMPUTER DATABASES AND SEARCH THROUGH THEM TO DOWNLOAD DATA FILES ON VARIOUS TOPICS THAT THE OWNERS OF THE DATABASES HAVE CHOSEN TO SHARE ON THE NETWORK NOTE THIS IS NOT THE SAME AS ILLEGALLY HACKING ONE'S WAY INTO PRIVATE FILES THERE ARE SEVERAL COMPETING SOFTWARE SYSTEMS FOR BROWSING AND SEARCHING THESE REMOTE COMPUTERS IN GENERAL THE INTERNET ISN'T VERY USERFRIENDLY MOST OF THE SOFTWARE FOR USING IT IS A THROWBACK TO THE OLD DAYS OF COMPUTING REQUIRING USERS TO MEMORIZE COMMANDS AND TYPE THEM IN WITH JUST THE RIGHT SYNTAX THERE ARE A FEW PROGRAMS MAINLY FOR APPLE MACINTOSH COMPUTERS THAT PUT A GRAPHICAL USER INTERFACE ON PORTIONS OF THE INTERNET IF YOU'RE NOT AT A COLLEGE OR GOVERNMENT AGENCY YOU CAN FIND MANY COMMERCIAL COMPUTER SERVICES THAT OFFER EMAIL EXCHANGE WITH THE INTERNET BUT GOING BEYOND THAT ISN'T EASY A FEW LOCAL COMPUTER BULLETIN BOARDS OFFER CONNECTIONS TO THE INTERNET THE DELPHI ONLINE SERVICE RUN BY GENERAL VIDEOTEX IN CAMBRIDGE MASS LETS YOU SEARCH AND DOWNLOAD DATA ON THE INTERNET FOR 23 A MONTH FOR AS MUCH AS 20 HOURS OF USE COMPANIES ALSO SELL DIRECT DIALUP LINKS TO THE INTERNET PERFORMANCE SYSTEMS INTERNATIONAL RESTON VA PROVIDES ACCESS TO THE INTERNET FOR 29 A MONTH WHICH INCLUDES THE NECESSARY SOFTWARE FOR IBMCOMPATIBLE COMPUTERS A NEARBY COMPANY INTERCON SYSTEMS OF HERNDON VA SELLS THE SAME SERVICE FOR MACINTOSH COMPUTERS A GOOD BOOK FOR INTERNET NOVICES IS THE INTERNET COMPANION BY TRACY LAQUEY AND JEANNE C RYER FROM ADDISONWESLEY YOU CAN ALSO FIND MANY GUIDES AND TIP SHEETS ON THE INTERNET ITSELF IF YOU CAN FIGURE OUT HOW TO GET ON GOOD LUCK 9305130176 930513 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 5/16 HIGH 1 LOW 1 NEAR CLOSING BID 1 1/2 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 303 30 TO 59 DAYS 304 60 TO 119 DAYS 305 120 TO 179 DAYS 308 180 TO 239 DAYS 312 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 309 30 DAYS 309 60 DAYS 311 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 261 TWO MONTHS 263 THREE MONTHS 268 SIX MONTHS 292 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 301 ONE MONTH 303 THREE MONTHS 310 SIX MONTHS BANKERS ACCEPTANCES 298 30 DAYS 298 60 DAYS 298 90 DAYS 299 120 DAYS 301 150 DAYS 302 180 DAYS 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 7/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY MAY 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 715 60 DAYS 725 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 715 60 DAYS 725 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 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 9305130175 930513 TECHNOLOGY & HEALTH WIDE GROUP OF COMPANIES JOIN PROJECT TO DEVELOP SUPERFAST COMPUTER NETWORK BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A BROAD RANGE OF US COMPANIES INCLUDING FIERCE RIVALS IN THE INFORMATION INDUSTRY ARE LAUNCHING A JOINT PROJECT TO HELP SPEED DEVELOPMENT OF AN ADVANCED COMPUTER NETWORK THAT ULTIMATELY COULD LINK EVERY HOME IN AMERICA THE CONSENSUSBUILDING PROJECT IS THE BROADEST EFFORT YET BY PRIVATE INDUSTRY TO TRY TO PUSH AHEAD THE CLINTON ADMINISTRATION'S VISION OF AN INFORMATION SUPERHIGHWAY THAT WOULD REVOLUTIONIZE THE DELIVERY OF VOICE TEXT AND VIDEO IN THE NEXT CENTURY HEADED BY THE COUNCIL ON COMPETITIVENESS A PRIVATE COALITION OF BUSINESS LEADERS THE PROJECT IS AIMED AT DEFINING TECHNOLOGICAL AND POLICY STEPS THAT GOVERNMENT AND INDUSTRY CAN TAKE TO UPDATE THE US COMMUNICATIONS NETWORK AND TO KEEP AHEAD OF FOREIGN COMPETITORS SUCH AS JAPAN JOHN YOUNG FORMER CHIEF EXECUTIVE OFFICER OF HEWLETTPACKARD CO AND ONE OF THE PROJECT'S LEADERS CALLED THE DEVELOPMENT OF A SUPERFAST COMPUTER NETWORK A FUNDAMENTAL COMPETITIVENESS ISSUE FOR THE US SUCH COUNTRIES AS JAPAN AND SINGAPORE ARE ALSO MOVING TOWARD SUPERFAST COMMUNICATIONS NETWORKS WHICH NOT ONLY WILL BE ABLE TO IMPROVE ON WHAT TELEPHONE SYSTEMS AND CABLE TELEVISION NOW OFFER BUT ARE EXPECTED TO SPIN OFF NUMEROUS NEW APPLICATIONS AND PRODUCTS MR YOUNG SAID HE DOESN'T EXPECT THE GROUP'S EFFORTS TO SOLVE ALL THE DIFFERENCES AMONG INDUSTRIES THAT ALREADY ARE IN HEAVY COMPETITION FOR THE GROWING COMMUNICATIONS MARKET INSTEAD MR YOUNG TOLD A NEWS CONFERENCE THAT THE GROUP OVER THE NEXT TWO YEARS WILL TRY TO FIND THE 80 WE CAN AGREE ON AMONG THE KEY PROBLEMS CLOUDING DEVELOPMENT OF A SUPERHIGHWAY ARE ANTITRUST POLICIES AND REGULATIONS THAT PHONE COMPANIES AND CABLE COMPANIES SAY KEEP THEM FROM MAKING CRUCIAL INVESTMENTS AND FROM EXPANDING INTO NEW SERVICES THOSE ARE AMONG THE ISSUES TO BE TACKLED IN A SEARCH FOR CONSENSUS IN SPITE OF THEIR DIFFERENCES THE GROUP WHICH INCLUDES CABLE COMPANIES BELL OPERATING COMPANIES LONGDISTANCE CARRIERS COMPUTER HARDWARE AND SOFTWARE COMPANIES CELLULAR COMPANIES AND NUMEROUS NETWORK USERS STAKED OUT AREAS OF GROWING CONSENSUS IN ITS INITIAL REPORT AMONG THE GROUP'S CONCLUSIONS WERE THAT PRIVATE INDUSTRY WILL PAY FOR BUILDING AND OPERATING THE NETWORK WHICH WILL LIKELY INCORPORATE THE USE OF HIGHCAPACITY FIBEROPTIC CABLES AND BY SOME ESTIMATES COULD COST 120 BILLION IT ALSO URGED MORE GOVERNMENTINDUSTRY COORDINATION AND SUGGESTED THAT TELEPHONE CABLE AND WIRELESS SERVICES SHOULD ALL PLAY A ROLE IN THE EVOLUTION OF A BROADER MORE ADVANCED NETWORK THE GROUP'S PLANS FOR THE FEDERAL GOVERNMENT'S ROLE PARALLEL THOSE ALREADY STAKED OUT BY MR CLINTON IN HIS TECHNOLOGY PLAN THE US GOVERNMENT IS SPENDING 772 MILLION THIS FISCAL YEAR ON RESEARCH INTO TECHNOLOGY AND COMPUTER APPLICATIONS ON A SUPERFAST COMPUTER NETWORK AND MR CLINTON PROPOSES TO BOOST THAT TO 1 BILLION A YEAR LEGISLATION NOW IN CONGRESS ALSO WOULD EXPAND THE GOVERNMENT'S ROLE IN DEVELOPING USAGE OF A NEW COMPUTER NETWORK FOR EDUCATION HEALTH AND SOCIAL PURPOSES IN SEPARATE LEGISLATION THAT IS EXPECTED TO PASS THE HOUSE TODAY CONGRESS ALSO WOULD PAVE THE WAY FOR ADVANCED COMPUTER NETWORKS TO PLAY A GREATER ROLE IN INCREASING SMALL AND MEDIUMSIZED US MANUFACTURERS' ACCESS TO NEW TECHNOLOGIES AND MANUFACTURING PRACTICES THE BILL WHICH WOULD CARRY OUT PORTIONS OF MR CLINTON'S TECHNOLOGY PROGRAM ALSO CALLS FOR MORE THAN DOUBLING THE COMMERCE DEPARTMENT'S ADVANCED TECHNOLOGY PROGRAM WHICH FUNDS COLLABORATIVE TECHNOLOGYDEVELOPMENT EFFORTS BETWEEN GOVERNMENT AND INDUSTRY THE BILL DOESN'T ALLOT MONEY FOR THE EXPANSION HOWEVER THE CRUCIAL DECISION ON WHETHER TO INCREASE FUNDING FOR THE ADVANCED TECHNOLOGY PROGRAM TO ALMOST 200 MILLION WOULD COME LATER IN A SEPARATE SPENDING BILL SIMILAR LEGISLATION IS PENDING BEFORE A SENATE COMMITTEE 9305130174 930513 WHO'S NEWS EASTMAN KODAK CO EASTMAN KODAK CO ROCHESTER NY C MICHAEL HAMILTON WAS NAMED A VICE PRESIDENT OF THIS MAKER OF PHOTOGRAPHIC AND CHEMICAL PRODUCTS MR HAMILTON 48 YEARS OLD IS ACTING CHIEF FINANCIAL OFFICER 9305130173 930513 ECONOMY PRODUCER PRICES JUMPED 06 DURING APRIL VEGETABLE COSTS PACE RISE ANALYSTS VOICE CONCERN BUT AWAIT OTHER DATA BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRICES AT THE WHOLESALE LEVEL IN APRIL SHOT UP AT THEIR FASTEST PACE IN 2 1/2 YEARS RAISING CONCERNS THAT ONE OF THE BITTERSWEET BENEFITS OF A SLUGGISH ECONOMY MAY BE LOST THE LABOR DEPARTMENT SAID ITS PRODUCER PRICE INDEX ROSE 06 LAST MONTH THE LARGEST GAIN SINCE OCTOBER 1990 PRODUCER PRICES ROSE 04 THE MONTH BEFORE MUCH OF THE LATEST GAIN CAME FROM A STARTLING 45 JUMP IN VEGETABLE PRICES WHICH THE LABOR DEPARTMENT ATTRIBUTED TO BAD WEATHER BUT EVEN EXCLUDING FOOD AND ENERGY WHICH TEND TO GIVE A DISTORTED PICTURE OF THE UNDERLYING INFLATION TREND BECAUSE OF THEIR VOLATILITY PRODUCER PRICES ROSE 04 IN APRIL THE LARGEST RISE IN NEARLY A YEAR FOR THE 12 MONTHS ENDED IN APRIL THE SOCALLED CORE RATE OF INFLATION AT THE PRODUCER LEVEL CLIMBED 24 SEVERAL ANALYSTS SAID THE UPTICK IN PRICES WAS DISCONCERTING WE NEED TO BE WORRIED A LITTLE BIT SAID SAMUEL KAHAN CHIEF ECONOMIST OF FUJI SECURITIES INC IN CHICAGO MR KAHAN SAID THAT AN INHOUSE MEASURE FUJI USES TO GAUGE FUTURE PRICE INCREASES HAS RECENTLY SUGGESTED INFLATION PRESSURES AHEAD I BELIEVE PRICES HAVE DEFINITELY BOTTOMED OUT FOR THIS BUSINESS CYCLE HE SAID THE RISE IN INFLATION IS ALSO CERTAIN TO RAISE EYEBROWS AT THE FEDERAL RESERVE WHICH MEETS NEXT WEEK TO SET INTERESTRATE POLICY FOR THE COMING WEEKS FOR SEVERAL MONTHS THE KEY FEDERAL FUNDS INTEREST RATE HAS BEEN SET AT 3 WHICH FED OFFICIALS FELT WAS ABOUT THE RATE OF INFLATION BUT IF IT BECOMES CLEAR THAT THE CORE RATE OF INFLATION IS MOVING CLOSER TO 4 THE CENTRAL BANK MAY FEEL COMPELLED TO RAISE RATES ECONOMISTS ARE LOOKING TOWARD THE CONSUMER PRICE INDEX WHICH COMES OUT THIS MORNING TO PROVIDE FURTHER EVIDENCE OF AN INFLATION TREND INCREASED PRICES AT THE WHOLESALE LEVEL HOWEVER DON'T ALWAYS TRANSLATE INTO HIGHER CONSUMER PRICES RECENT CONCERNS OVER INFLATION HAVE TROUBLED BOTH ECONOMISTS AND POLICY MAKERS THIS ECONOMIC RECOVERY HAS BEEN PARTICULARLY SLUGGISH BY HISTORICAL STANDARDS BUT ONE BENEFIT OF THAT SLOWNESS HAS BEEN AN OVERALL MODERATION IN PRICES BUSINESSES IN GENERAL HAVEN'T BEEN ABLE TO MAKE BIG PRICE INCREASES STICK BECAUSE DEMAND IS TOO WEAK DEMAND STILL ISN'T THAT STRONG SO IT ISN'T CLEAR WHY PRODUCER PRICES HAVE PICKED UP MOMENTUM ACROSS THE BOARD SOME ANALYSTS HAVE SUGGESTED THAT RETAILERS AND MANUFACTURERS ARE TESTING THEIR LUCK OTHERS HAVE SAID MANY BUSINESSES ARE KEEPING SUPPLY SO LOW THAT EVEN A SLIGHT INCREASE IN DEMAND WILL PROBABLY BOOST PRICES AND SOME OTHER ANALYSTS SAID YESTERDAY'S INFLATION REPORT WAS SIMPLY A FLUKE SUCH A HIGH CORE RATE IN INFLATION IS NOT LIKELY TO BE SUSTAINED SAID IRWIN KELLNER CHIEF ECONOMIST OF CHEMICAL BANKING CORP IN NEW YORK WEAK LABOR MARKET THAT IS BECAUSE THE LABOR MARKET REMAINS VERY WEAK MAKING IT HARD FOR WORKERS TO DEMAND WAGE INCREASES LABOR COSTS HAVE A LOT TO DO WITH HOW MUCH CONSUMERS AND BUSINESSES PAY FOR GOODS FURTHERMORE PRODUCTIVITY GAINS HAVE ENABLED MANUFACTURERS TO KEEP PRICES DOWN AND THERE IS STILL A LOT OF EXCESS CAPACITY IN THE US AND ABROAD PRODUCER PRICES LAST MONTH ALSO WERE DRIVEN UP BY A 14 JUMP IN TOBACCO PRICES AND A 11 INCREASE IN CAR PRICES ANALYSTS SAID TOBACCO PRICES WILL BEGIN MODERATING SOON BECAUSE RJR NABISCO INC AND PHILIP MORRIS COS ARE IN THE MIDST OF A PRICING BATTLE THE BIG INCREASE IN CAR COSTS SUGGESTS AUTO MAKERS MAY BE OFFERING FEWER REBATES AS DEMAND FOR AUTOMOBILES SEEMS TO BE PICKING UP PRICES FOR INTERMEDIATE GOODS ROSE 02 LAST MONTH AFTER A 03 RISE IN MARCH EXCLUDING FOOD AND ENERGY THE INCREASE IN PRICES FOR INTERMEDIATE GOODS WAS STILL 02 SOCALLED CRUDE GOODS JUMPED 12 IN APRIL AFTER ONLY RISING 04 IN MARCH EXCLUDING FOOD AND ENERGY THEY ROSE 18 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR APRIL BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM APRIL 1992 9305130172 930513 MARKETING & MEDIA ADVERTISING BENSON & HEDGES TURNS TO SNAKES AND BEES IN UNUSUAL AD IMAGERY BY KEVIN GOLDMAN IN ITS NEW BENSON & HEDGES CIGARETTE CAMPAIGN PHILIP MORRIS IS DEPARTING FROM THE USUAL SEXANDYOUTH ADVERTISING IMAGERY INSTEAD IT'S TRYING SNAKES AND BEES THE VISUALLY ARRESTING ADS PRODUCED BY CHICAGOBASED AGENCY LEO BURNETT MAKE SMOKING SEEM FRAUGHT WITH RISK EVEN SINISTER THE ADVERTISEMENTS APPEAR IN MAGAZINES SUCH AS THE JUNE ISSUE OF ESQUIRE AND IN BUS SHELTER BILLBOARDS IN MAJOR MARKETS IN ONE A SHINY BLACK SNAKE THAT ACTUALLY RESEMBLES A WHIP IS SHOWN COILED UP WITH A PACK OF BENSON & HEDGES SPECIAL KINGS AN 85MILLIMETER VERSION OF ITS 100MILLIMETER BRAND OTHER EXECUTIONS ARE JUST AS OFFPUTTING ONE AD FEATURES BEES AND ANOTHER A MYSTERIOUS HAND AN OFFICIAL CLOSE TO THE CAMPAIGN EMPHASIZES THAT THE SNAKE AN INDIAN RACER IS NONPOISONOUS PHILIP MORRIS USA WHICH MAKES BENSON & HEDGES SAYS THE SERIES OF ADS AIMS TO BRING DISTINCTIVE VISUAL IMAGERY TO THE 85MILLIMETER BRAND WHICH WAS INTRODUCED LAST SEPTEMBER BURNETT WON THE ESTIMATED 25 MILLION ACCOUNT IN APRIL 1991 FROM WELLS RICH GREENE BDDP THE AGENCY THAT MADE THE BRAND FAMOUS WITH LOOPY TELEVISION COMMERCIALS SHOWING THE PERILS OF SMOKING AN EXTRALONG CIGARETTE MANY OF THE PREVIOUS ADS HIGHLIGHTED THE BRAND'S UNIQUE FEATURES SUCH AS ITS SOCALLED ROUNDED BOX SO IT COULD BETTER FIT INTO THE SMOKER'S POCKET BUT THE NEW ADS TURN UP THE VOLUME IN THE CROWDED CIGARETTE FIELD BRANDS SUCH AS MARLBORO AND BENSON & HEDGES ARE UNDER ATTACK FOR MARKET SHARE FROM CHEAPER NONAME CIGARETTES BENSON & HEDGES LIKE PHILIP MORRIS'S MARLBORO IS A PREMIUMPRICED CIGARETTE THE ADS INCORPORATE A TAGLINE GET THE EDGE THE SMOOTH EDGE BENSON & HEDGES BLACK & GOLD THE LINE REFERS TO A CATALOG OF CLOTHING OFFERED TO BENSON & HEDGES SMOKERS TITLED THE TAKE THE EDGE OFF COLLECTION NOT UNLIKE THE MARLBORO ADVENTURE TEAM AND OTHER MERCHANDISE OFFERED BY TOBACCO MANUFACTURERS INCLUDING PHILIP MORRIS'S VIRGINIA SLIMS ANTISMOKING ADVOCATES CRITICIZED THE CAMPAIGN AND THE MERCHANDISING OF BENSON & HEDGES PRODUCTS WHAT IS TAKE THE EDGE OFF' IF NOTHING BUT A DRUG CLAIM ASKS JOHN SLADE A PHYSICIAN SPECIALIZING IN ADDICTION MEDICINE AT ST PETER'S MEDICAL CENTER IN NEW BRUNSWICK NJ TAKE THE EDGE OFF OF WHAT THIS IS INTENDED TO MAKE YOU RELAX WHICH IS A DRUG CLAIM DR SLADE SAYS WHEN HE SAW THE AD FEATURING THE SNAKE WITH ITS HEAD RAISED IN A MENACING MANNER WHAT OCCURRED TO ME IS THE ASSOCIATION WITH RISK AND THE ATTRACTION PEOPLE HAVE TO MYSTERY AND SNAKES WHEN ASKED WHY SUCH CREATURES AS SNAKES AND BEES WOULD INHABIT THE ADS A PHILIP MORRIS SPOKESWOMAN REPLIES BECAUSE THEY'RE BLACK AND GOLD THEY COMPLEMENT THE PACKAGING SNAKES AND BEES WITH THEIR UNPLEASANT ASSOCIATIONS FOR MOST PEOPLE ARE A CURIOUS CHOICE BUT BENSON & HEDGES NEEDS TO DO SOMETHING TO HEIGHTEN BRAND AWARENESS ESPECIALLY WITH ITS MENTHOL BRAND LAST YEAR BENSON & HEDGES REGULARS RANKED NO 8 WITH 31 OF THE MARKET DOWN 57 ACCORDING TO MAXWELL CONSUMER REPORT ITS MENTHOL BRAND ACCORDING TO PHILIP MORRIS HAS A MARKET SHARE OF ONLY 02 TO 04 MAXWELL SAYS IT DOESN'T BREAK OUT THE MENTHOL BRAND BUT MENTHOL CIGARETTES ARE A HOTLY CONTESTED CATEGORY AND ARE ENORMOUSLY POPULAR AMONG BLACK SMOKERS SAYS GREGORY CONNOLLY A PHYSICIAN WITH THE MASSACHUSETTS TOBACCO CONTROL PROGRAM AT THE STATE'S DEPARTMENT OF PUBLIC HEALTH AND OF THE TOP 10 CIGARETTE BRANDS NEWPORT A MENTHOL WAS ONE OF TWO BRANDS THAT SHOWED GROWTH LAST YEAR ACCORDING TO MAXWELL THE OTHER WAS CAMEL BENSON & HEDGES RIGHT NOW IS BEING POSITIONED AGAINST NEWPORT WHICH IS VERY POPULAR AMONG BLACK TEENS SAYS DR CONNOLLY ADDING THAT 70 OF BLACKS WHO SMOKE INHALE MENTHOL CIGARETTES BENSON & HEDGES HAS ALSO BEEN LINKED IN THE RECENT PAST TO TARGETING HOMOSEXUALS IT IS THE ONLY CIGARETTE FOR INSTANCE TO ADVERTISE IN GENRE A FASHION AND LIFESTYLE MAGAZINE FOR HOMOSEXUAL MEN YESTERDAY GENRE'S PUBLISHER DON TUTHILL SAID PHILIP MORRIS DISCUSSED SOME EXECUTIONS WITH US AS TO WHAT WOULD BE APPROPRIATE FOR OUR MAGAZINE HOWEVER MR TUTHILL EMPHASIZED THAT NO VERSION OF THE ADS WAS GEARED SPECIFICALLY TO HOMOSEXUALS BENSON & HEDGES HAVE ALWAYS INCLUDED US IN AD BUYS ALONG WITH PLAYBOY AND SPORTS ILLUSTRATED SAYS MR TUTHILL ADDING THAT THE BRAND REMAINS THE ONLY CIGARETTE TO ADVERTISE IN THE MAGAZINE BENSON & HEDGES SAYS THE PHILIP MORRIS SPOKESWOMAN IS LIKE ALL OUR PRODUCTS IT'S DESIGNED FOR ADULTS WHO SMOKE INCLUDING ALL RACES SHE ADDS THAT THE BENSON & HEDGES ADS HAVE THE SAME OBJECTIVE AS ALL OTHER CIGARETTE CAMPAIGNS TO ENHANCE BRAND RECOGNITION AND PROMOTE BRAND SWITCHING TO BENSON & HEDGES NEVERTHELESS THE NEW ADS SUGGEST MORE DANGEROUS CONSEQUENCES THAN THOSE SHOWN IN THE JOKEY ADS FOR BENSON & HEDGES'S 100MILLIMETER CIGARETTES INTRODUCED IN 1966 BACK THEN A BENSON & HEDGES SMOKER COULD HAVE AN ELEVATOR DOOR SLAMMED ON HIS CIGARETTE BECAUSE OF THE 15EXTRA MILLIMETERS OR HAVE A BALLOON POP BECAUSE HE MISJUDGED THE DISTANCE HYATT CORP AWARDED ITS ESTIMATED 25 MILLION ADVERTISING ACCOUNT TO OMNICOM GROUP'S BBDO NEW YORK OVERTURNING EXPECTATIONS ALONG MADISON AVENUE THAT THE ACCOUNT WOULD GO TO THE OTHER FINALIST IN THE PITCH LEO BURNETT CO CHICAGO EVEN MANY EXECUTIVES PARTICIPATING IN THE REVIEW THOUGHT BURNETT HAD THE HOMETEAM ADVANTAGE THE BIG AGENCY DOMINATES MUCH OF THE CHICAGO AD SCENE AND RARELY LOSES OUT IN A PITCH IN ITS OWN BACKYARD HYATT'S RELATIONSHIP WITH ITS PREVIOUS AGENCY HILL HOLLIDAY CONNORS COSMOPULOS OF BOSTON CAME TO AN UNCEREMONIOUS END LAST FALL DETAILS ON THE TIMING AND CONTENTS OF HYATT'S NEW CAMPAIGN COULDN'T BE DETERMINED JIM EVANS HYATT'S SENIOR VICE PRESIDENT OF SALES AND MARKETING SAID THE COMPANY'S SEARCH COMMITTEE CHOSE BBDO FOR THE STRENGTH OF ITS CREATIVE WORK PHIL DUSENBERRY A BBDO VICE CHAIRMAN AND HEAD OF THE AGENCY'S NEW YORK OFFICE SAID MOST HOTEL ADVERTISING IS PRETTY INVISIBLE BBDO'S CHICAGO OFFICE MAY HANDLE SOME OF THE DUTIES ON THE ACCOUNT HE SAID CONSUMER ADVOCACY GROUPS HOPE THAT A NEW FANGLED IDEA TO PLACE ADS ON THE SIDES OF ROCKET SHIPS AS WELL AS OTHER SPACE BILLBOARDS WILL NEVER GET OFF THE GROUND SEVERAL GROUPS INCLUDING THE CENTER FOR THE STUDY OF COMMERCIALISM THE NATIONAL COALITION ON TELEVISION VIOLENCE AND SEVERAL STATE PUBLIC INTEREST RESEARCH GROUPS ARE SCHEDULING NEWS CONFERENCES TODAY TO PROTEST THE OUTOFTHISWORLD PROPOSAL AN ATLANTABASED COMPANY SPACE MARKETING IS PROPOSING A MILELONG BILLBOARD IN ORBIT THAT COULD BE SEEN FROM EARTH THERE ARE NO SPONSORS YET BUT THE RESEARCH GROUPS PLAN TO CALL FOR A BOYCOTT OF ANY ADVERTISER THAT SIGNS UP MICHAEL LAWSON HEAD OF SPACE MARKETING COULDN'T BE REACHED FOR COMMENT IT'S AN INCREDIBLE ASSAULT ON EVERYTHING WE BELIEVE IN SAYS WENDY WENDLANDT POLITICAL DIRECTOR OF THE CALIFORNIA PUBLIC INTEREST GROUP THE ENVIRONMENT SHOULD BE CLEAN THIS REEKS TO US OF LITTER AND POLLUTION AND AN ASSAULT ON OUR EVERYDAY LIFE YOU COULD BE SITTING AT A CAMPSITE AND ALL OF A SUDDEN A BILLBOARD FROM COCACOLA WOULD BE COMING OVER THE HORIZON STARING DOWN AT YOU THE GROUPS ARE ALSO PROTESTING A SPACE MARKETING VENTURE AN AD THAT IS SCHEDULED TO APPEAR FOR LAST ACTION HERO STARRING ARNOLD SCHWARZENEGGER FROM COLUMBIA PICTURES A SONY CORP UNIT IT IS SCHEDULED TO BE ON THE FUSELAGE AND BOOSTER ROCKET OF AN UNMANNED COMMERCIAL SPACE MISSION THAT ORIGINALLY WAS SCHEDULED TO BE LAUNCHED THIS MONTH BUT WHICH IS NOW POSTPONED TO AT LEAST AUGUST OVERSEAS ACCOUNT SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES UNIT SAID IT WON THE THE EVEREADY BATTERY ACCOUNT THROUGHOUT MOST OF LATIN AMERICA ENDING A PITCH THAT HAD INCLUDED THREE OF EVEREADY'S OTHER OVERSEAS AGENCIES LEO BURNETT INTERPUBLIC GROUP'S MCCANNERICKSON AND WPP GROUP'S J WALTER THOMPSON BILLINGS ARE ESTIMATED AT BETWEEN 10 MILLION AND 15 MILLION AYER NW AYER THE CLOSELY HELD NEW YORK AGENCY ELECTED FOUR NEW MEMBERS TO ITS BOARD INCLUDING RICHARD HUMPHREYS THE FORMER SAATCHI & SAATCHI CO EXECUTIVE WHO IS PART OF AN INVESTOR GROUP THAT RECENTLY ACQUIRED A STAKE IN THE AGENCY ALSO ELECTED WERE KEITH GOULD JANET KEELER AND ANNE MACDONALD WHO ARE AYER EXECUTIVES WHO'S NEWS MICHAEL BUNGEY THE RECENTLY NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES WORLDWIDE UNIT NAMED THE EXECUTIVE WHO WILL SUCCEED HIM AS HEAD OF THE AGENCY'S EUROPEAN OPERATIONS GUNTHER GAHREN MANAGING DIRECTOR AT THE BSB UNIT SCHOLZ & FRIENDS OF HAMBURG GERMANY WAS NAMED CHAIRMAN OF BSB EUROPE MICHAEL GERAGHTY A DIRECTOR AT THE BSB EUROPE UNIT WAS NAMED CHIEF OPERATING OFFICER AND PETER SCHONING A PARTNER AT THE SCHOLZ UNIT WAS NAMED MANAGING DIRECTOR OF THE UNIT OLDS LEO BURNETT OUTLINED PLANS FOR RESTRUCTURING EMPLOYEES ON THE 140 MILLION OLDSMOBILE ACCOUNT WHICH IT SAVED IN A HOTLY CONTESTED REVIEW EARLIER THIS YEAR BURNETT HAD AGREED TO MOVE THE ACCOUNT FROM SOUTHFIELD MICH TO CHICAGO AS PART OF ITS SUCCESSFUL BID TO RETAIN THE OLDSMOBILE BUSINESS UNDER JAMES E THOMPSON EXECUTIVE VICE PRESIDENT THE 106PERSON GROUP WILL BE DIVIDED INTO TEAMS HANDLING ASPECTS OF THE ACCOUNT INCLUDING A FUTURES TEAM TO WORK ON FIVEYEAR AND 10YEAR PLANS FOR THE BRAND'S ADS WITH JOHN ROCK OLDSMOBILE GENERAL MANAGER 9305130171 930513 WHO'S NEWS SNAPPLE BEVERAGE CORP SNAPPLE BEVERAGE CORP VALLEY STREAM NY VICTOR A BONOMO A RETIRED EXECUTIVE VICE PRESIDENT OF PEPSICO INC WAS ELECTED A DIRECTOR OF THIS BEVERAGE COMPANY INCREASING THE BOARD TO EIGHT MEMBERS 9305130170 930513 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 CONTINENTAL BANK CORP 150 MILLION OF NOTES DUE MAY 18 2000 PRICED TO FLOAT QUARTERLY AT A SPREAD OF 0375 PERCENTAGE POINT ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE ACCORDING TO MCM CORPORATEWATCH THREEMONTH LIBOR IS CURRENTLY 31875 THE NONCALLABLE ISSUE WHICH PAYS INTEREST QUARTERLY WILL YIELD A MINIMUM 45 ACCORDING TO LEAD UNDERWRITER GOLDMAN SACHS & CO NO MAXIMUM YIELD IS SET THE ISSUE IS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP AUSPEX SYSTEMS INC INITIAL OFFERING OF FIVE MILLION COMMON SHARES AT 12 APIECE THROUGH GOLDMAN SACHS & CO AND HAMBRECHT & QUIST INC COMANAGERS OF THE UNDERWRITING GROUP LCI INTERNATIONAL INC 53 MILLION COMMON SHARES PRICED AT 1825 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO UNION BANK 25 MILLION COMMON SHARES PRICED AT 3050 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ARIZONA POWER AUTHORITY 83 MILLION 1993 SERIES POWER RESOURCE REVENUE REFUNDING BONDS PRICED BY A MORGAN STANLEY & CO GROUP YIELDS RANGE FROM 28 IN 1994 TO 566 IN 2017 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P CHESTERFIELD COUNTY VA 53 MILLION SERIES 1993 PUBLIC IMPROVEMENT REFUNDING BONDS APPARENTLY WON BY A FIRST BOSTON CORP GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 50875 YIELDS RANGE FROM 225 IN 1994 TO 535 IN 2010 AND 2011 THE BONDS HAVE BEEN RATED TRIPLEA BY MOODY'S AND DOUBLEAPLUS BY S&P NEW YORK STATE URBAN DEVELOPMENT CORP 670 MILLION OF BONDS PRICED WITH MORGAN STANLEY & CO RUNNING THE BOOKS FOR THE ISSUE AND A LEAD UNDERWRITER OF PRYOR MCCLENDON COUNTS & CO INCLUDED IN THE OFFERING ARE 1993 REFUNDING SERIES CORRECTIONAL FACILITIES REVENUE BONDS WHICH HAVE BEEN PRICED TO YIELD 5 IN 1999 TO 62 FOR ZEROCOUPON BONDS DUE IN 200810 MOST OF THE BONDS HAVE BEEN RATED TRIPLEB BY S&P AND SINGLEA BY FITCH INVESTORS SERVICE INC MOODY'S IS EXPECTED TO ASSIGN A BAA1 RATING BONDS DUE IN 2012 ARE INSURED BY MBIA AND BONDS DUE IN 2018 ARE INSURED BY AMBAC INDEMNITY CORP THOSE SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THERE ARE ALSO 1993 REFUNDING SERIES CORRECTIONAL CAPITAL FACILITIES REVENUE BONDS WHICH ARE PRICED TO YIELD FROM 325 IN 1994 TO 62 FOR ZEROCOUPON BONDS DUE IN 200810 THESE BONDS HAVE BEEN RATED TRIPLEB BY S&P AND SINGLEA BY FITCH MOODY'S IS EXPECTED TO ASSIGN A BAA1 RATING VIRGINIA 120 MILLION BONDS WON BY A MERRILL LYNCH & CO GROUP THE 70 MILLION SERIES 1993A TRANSPORTATION FACILITIES REFUNDING BONDS WERE WON WITH A TRUE INTEREST COST OF 5075 AND YIELDS WERE SET AT 225 IN 1993 TO 525 IN 2009 THE BALANCE OF THE OFFERING 50 MILLION VARIOUS SERIES 1993A BONDS WERE ALSO WON WITH A TIC OF 5075 YIELDS FOR THOSE BONDS RANGE FROM 26 IN 1994 TO 54 IN 2014 AND 2015 BOTH MOODY'S AND S&P HAVE RATED THE BONDS TRIPLEA BANKAMERICA CORP US 300 MILLION OF FLOATING RATE EURONOTES DUE MAY 1998 AT ISSUE PRICE PAR VIA KIDDER PEABODY INTERNATIONAL LTD INTEREST FLOATS AT 35 BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS FEES 025 POINT BEST DENKI CO JAPAN 160 MILLION OF EUROBONDS DUE MAY 28 1997 WITH EQUITY WARRANTS ATTACHED AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD EACH 5000 BOND CARRIES ONE WARRANT EXERCISABLE FROM JUNE 10 1993 THROUGH MAY 14 1997 TO BUY BEST DENKI SHARES AT A 2 1/2 PREMIUM ABOVE CLOSING SHARE PRICE ON MAY 18 WHEN FINAL TERMS SET FEES 225 POINTS GASTEC SERVICE INC JAPAN 50 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 2 NOTES DUE NOV 20 1997 AT PAR VIA NOMURA BANK SWITZERLAND EACH 50000 SWISS FRANC NOTE IS CONVERTIBLE FROM JUNE 14 1993 TO NOV 13 1997 AT APPROXIMATELY A 25 PREMIUM OVER THE CLOSING SHARE PRICE MAY 18 WHEN TERMS ARE FIXED FEES 1625 POINTS INTERNATIONAL FINANCE CORP SUPRANATIONAL 40 BILLION YEN OF 4 3/8 EUROBONDS DUE JUNE 11 1998 AT REOFFER PRICE 9976 VIA NIKKO EUROPE LTD YIELD 443 ANNUAL AT REOFFER PRICE MARGIN 17 BASIS POINTS ABOVE JAPANESE GOVERNMENT BOND NO 111 FEES 025 POINT LKB BADENWUERTTEMBERG FINANCE NV GERMANY PARENT 300 MILLION MARKS OF 6 1/4 EUROBONDS DUE JUNE 4 1998 AT ISSUE PRICE 10165 VIA SCHWEIZERISCHE BANKGESSELSCHAFT DUETSCHELAND AG YIELD 633 ANNUAL AT 9965 BREAKEVEN PRICE FOR UNDERWRITERS GUARANTOR LANDESKREDITBANK BADENWUERTTEMBERG AND GERMAN STATE OF BADENWUERTTEMBERG FEES 2 POINTS REPUBLIC OF ITALY SOVEREIGN 500 MILLION OF 5 5/8 EUROBONDS DUE JUNE 9 1998 AT REOFFER PRICE 9952 VIA MORGAN STANLEY INTERNATIONAL YIELD 574 ANNUAL AT REOFFER PRICE MARGIN 65 BASIS POINTS ABOVE COMPARABLE TREASURY FEES 025 POINT 9305130169 930513 RULING AGAINST GOLDMAN COULD HURT WALL STREET'S LUCRATIVE BANKRUPTCY ROLE BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A RULING THAT COULD DEAL A BIG BLOW TO ONE OF WALL STREET'S MOST LUCRATIVE BUSINESSES A FEDERAL APPEALS COURT SAID AN INVESTMENT BANK CAN'T ADVISE A COMPANY IN BANKRUPTCYLAW PROCEEDINGS IF IT ALREADY HAS A BUSINESS RELATIONSHIP WITH IT THE DECISION WAS ISSUED IN A CASE INVOLVING EAGLEPICHER INDUSTRIES INC AND ITS INVESTMENT BANKER GOLDMAN SACHS & CO EAGLEPICHER A CINCINNATI MAKER OF AUTOMOBILE MACHINERY AND INDUSTRIAL PRODUCTS FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN JANUARY 1991 AND HIRED GOLDMAN TO ADVISE IT BUT THE US COURT OF APPEALS FOR THE SIXTH CIRCUIT REVERSING TWO LOWERCOURT ORDERS BUMPED GOLDMAN FROM THE CASE CITING GOLDMAN'S PREVIOUS INVESTMENTBANKING WORK FOR EAGLEPICHER GOLDMAN IS NOT A DISINTERESTED PERSON WITHIN THE MEANING OF THE BANKRUPTCY CODE THE COURT SAID AND EAGLEPICHER MAY NOT HIRE THE INVESTMENT BANK GOLDMAN WAS THE LEAD UNDERWRITER OF EAGLEPICHER'S 398 MILLION INITIAL PUBLIC STOCK OFFERING IN 1986 ACCORDING TO SECURITIES DATA CO AND HAS SINCE SERVED AS THE COMPANY'S INVESTMENT ADVISER THE BROADER MESSAGE IS THAT INVESTMENT BANKERS MUST HAVE HAD NO PRIOR CONNECTION WITH THE DEBTOR TO BE RETAINED IN A BANKRUPTCYLAW CASE SAID PETER A CHAPMAN PUBLISHER OF EAGLEPICHER BANKRUPTCY NEWS A WEEKLY NEWSLETTER TRACKING THE COMPANY'S BANKRUPTCY CASE BANKRUPTCY REORGANIZATION IS BIG BUSINESS ON WALL STREET MAJOR INVESTMENT BANKS THAT ADVISE CORPORATE CLIENTS OR ACT AS AN UNDERWRITER FOR THEIR STOCKS AND BONDS TYPICALLY GET PICKED TO REPRESENT THEM IF THE COMPANIES RUN INTO FINANCIAL TROUBLE AND FILE FOR BANKRUPTCYLAW PROTECTION WALL STREET INVESTMENT BANKS EARN AT LEAST 100 MILLION IN ANNUAL FEES REPRESENTING COMPANIES IN BANKRUPTCYLAW PROCEEDINGS ESTIMATES GEORGE PUTNAM EDITOR OF THE BANKRUPTCY DATASOURCE A BOSTON PUBLICATION THAT TRACKS BANKRUPTCY CASES THE TYPICAL INVESTMENT BANK EARNS ROUGHLY 100000 A MONTH IN A BIG BANKRUPTCY CASE MR PUTNAM SAYS AND MANY BIG BANKRUPTCIES INVOLVE SEVERAL INVESTMENT BANKS AS ADVISERS HE SAYS BUT NOW PROFITABLE BANKRUPTCY ASSIGNMENTS CASES COULD GO BY DEFAULT TO SMALLER INVESTMENT BANKS WITH FEW CORPORATE CLIENTS THE RULING BASICALLY SAYS THAT EVEN IF YOU KNOW A GREAT DEAL ABOUT A COMPANY AND ITS CAPITAL STRUCTURE AND THE HOLDERS OF ITS SECURITIES AND EVEN THOUGH YOU PROVIDE A SIGNIFICANT BENEFIT TO THE DEBTOR WE'RE NOT GOING TO LET YOU ADVISE IT IN BANKRUPTCY SAYS ALAN B MILLER A PARTNER IN THE BUSINESS REORGANIZATION DEPARTMENT OF WEIL GOTSHAL & MANGES A NEW YORK LAW FIRM TWO YEARS AGO A BANKRUPTCYCOURT JUDGE OVER THE OBJECTIONS OF THE US TRUSTEE IN THE EAGLEPICHER BANKRUPTCY RULED THAT EAGLEPICHER COULD HIRE GOLDMAN AS ITS FINANCIAL ADVISER THE TRUSTEE OBJECTED BECAUSE GOLDMAN HAD SERVED AS MANAGING UNDERWRITER FOR EAGLEPICHER ON SEVERAL REVENUEBOND OFFERINGS THE REVERSAL BY THE APPELLATE COURT CITED A PORTION OF THE BANKRUPTCY CODE THAT SAYS THAT FIRMS ADVISING COMPANIES IN A BANKRUPTCY CASE MUST BE DISINTERESTED MEANING THAT AMONG OTHER THINGS THEY WEREN'T AN UNDERWRITER OF THE COMPANY'S SECURITIES IN THE THREE YEARS BEFORE THE DATE OF THE BANKRUPTCY FILING THE BANKRUPTCY COURT SAID GOLDMAN'S RELATIONSHIP WITH EAGLEPICHER WAS PRECISELY WHY GOLDMAN SHOULD BE APPOINTED AS FINANCIAL ADVISER IN THE BANKRUPTCY CASE THE BANKRUPTCY COURT REASONED THAT GOLDMAN WILL NEED LESS TIME TO FAMILIARIZE ITSELF WITH THE DEBTORS' BUSINESS AND AFFAIRS THAN ANOTHER FINANCIAL ADVISER ACCORDING TO PAPERS FILED IN THE CASE A FEDERAL COURT AGREED WITH THE BANKRUPTCYCOURT RULING LAST YEAR IN REVERSING THE LOWERCOURT DECISIONS THE APPELLATE COURT SAID THAT IRRESPECTIVE OF WHETHER ONE UNDERSTANDS THE RATIONALE BEHIND THE STATUTE'S MANDATE THERE IS SIMPLY NO REASONABLE BASIS FOR IGNORING IT DESPITE ITS SIGNIFICANCE THE APPELLATE COURT RECOMMENDED THAT ITS DECISION NOT BE USED AS A PRECEDENT THAT TYPICALLY IS DONE WHEN A RULING DOESN'T SETTLE A MATTER OF LAW OR WHEN A CASE APPEARS TO BE CLEARCUT SECURITIES LAWYERS SAID INDEED THE COURT APPEARED TO APOLOGIZE FOR ITS RULING ALTHOUGH IT MAY MAKE LITTLE SENSE TO THE BANKRUPTCY COURT AND EAGLEPICHER OR FOR THAT MATTER TO THIS COURT THAT GOLDMAN SACHS IS NOT PERMITTED TO SERVE AS FINANCIAL ADVISER THE STATUTE REQUIRES THAT RESULT THIS COURT IS BOUND TO APPLY THE PLAIN MEANING OF THE STATUTE EVEN WHEN THE APPLICATION APPARENTLY RESULTS IN AN APPARENT ANOMALY EAGLEPICHER'S CHIEF FINANCIAL OFFICER DAVID HALL NOTING THAT THE COMPANY CREDITORS AND SHAREHOLDERS APPROVED GOLDMAN'S RETENTION AS AN ADVISER SAID HE WAS SORRY ABOUT THE RULING GOLDMAN SACHS HAS RENDERED US A VALUABLE SERVICE HE SAID IN AN INTERVIEW WITH THE DOW JONES NEWS SERVICE GOLDMAN DIDN'T RETURN PHONE CALLS SEEKING COMMENT MR CHAPMAN THE NEWSLETTER PUBLISHER SAID THE RULING MIGHT MEAN THAT GOLDMAN WILL HAVE TO GIVE BACK ROUGHLY 2 MILLION PAID FOR WORK PERFORMED OVER THE PAST TWO YEARS ADVISING EAGLEPICHER IN THE CASE BUT EAGLEPICHER'S MR HALL SAID I DON'T THINK THAT'S SO GOLDMAN SACHS WAS OPERATING UNDER ORDER OF THE BANKRUPTCY COURT PAYMENT WAS APPROVED BY THE COURT WE THINK IT WOULD BE UNUSUAL AND NOT APPROPRIATE TO SEEK A REFUND FROM THE INVESTMENT BANKING FIRM MR CHAPMAN SAID THE REAL ODDITY IN THIS CASE IS THAT THE APPEAL WAS TAKEN BY THE US TRUSTEE A CREATURE OF CONGRESS WITH ABSOLUTELY NO FINANCIAL STAKE IN EAGLEPICHER'S REORGANIZATION INDEED ADDED MR CHAPMAN EVERY REAL PARTY IN INTEREST THE COMPANY THE UNSECURED CREDITORS THE ASBESTOS CLAIMANTS AND THE SHAREHOLDERS SAID OK' TO GOLDMAN SACHS'S EMPLOYMENT 9305130168 930513 CANADA HOLDS BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT REPORTED AN AVERAGE YIELD OF 7613 AT AN AUCTION OF 160 BILLION CANADIAN DOLLARS US126 BILLION OF BONDS DUE DEC 1 2003 THE PRICE EQUIVALENT OF THE AVERAGE YIELD WAS 98996 PROCEEDS OF THE ISSUE WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9305130167 930513 MONEY FUND ASSETS ROSE AND YIELDS FELL IN MOST RECENT WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS FELL SLIGHTLY IN THE LATEST WEEK WHILE ASSETS ROSE IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD SLIPPED TO 262 FROM 265 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 598 TAXABLE FUNDS MEANWHILE GREW BY 369 BILLION TO 49132 BILLION THE NEWSLETTER REPORTED OF THIS INCREASE 322 BILLION WAS INSTITUTIONAL MONEY AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 63 DAYS FOR THE THIRD CONSECUTIVE WEEK A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT A DRAMATIC CHANGE IN SHORTTERM INTEREST RATES SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS EASED TO 259 FROM 262 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD SLIPPED TO 262 FROM 263 WHILE THE AVERAGE 30DAY COMPOUND YIELD DECLINED TO 265 FROM 267 YIELDS ON TAXFREE FUNDS DECLINED IN THE LATEST WEEK THE AVERAGE SEVENDAY COMPOUND YIELD FOR INSTANCE SLID TO 196 FROM 201 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 272 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 284 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 322 TAXEXEMPT FUNDS ROSE BY 9182 MILLION TO 9960 BILLION ACCORDING TO MONEY FUND REPORT THE FUNDS' AVERAGE PORTFOLIO MATURITY SHORTENED BY ONE DAY TO 48 DAYS 9305130166 930513 WHO'S NEWS HARPER GROUP INC HARPER GROUP INC SAN FRANCISCO JOHN KAISER 53 YEARS OLD WAS NAMED A DIRECTOR TO THIS INTERNATIONAL TRANSPORTATION COMPANY THE APPOINTMENT OF MR KAISER A BUSINESSMAN AND INVESTOR BRINGS THE NUMBER OF DIRECTORS TO SEVEN 9305130165 930513 WHO'S NEWS TYCO LABORATORIES INC TYCO LABORATORIES INC EXETER NH JOHN J GUARNIERI 43 YEARS OLD AND CORPORATE CONTROLLER OF THIS FIRE PROTECTION AND FLOW PRODUCTS CONCERN WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT 9305130164 930513 ENTERPRISE WOMENOWNED BUSINESSES ATTRACT A LOT OF ATTENTION MARKETERS RESEARCHERS SEE OPPORTUNITIES IN CATERING TO FASTGROWING SECTOR BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL MARKETERS AND RESEARCHERS SEE A CORNUCOPIA OF OPPORTUNITIES IN CATERING TO THE FASTGROWING MARKET OF WOMEN BUSINESS OWNERS SOME FEMALE ENTREPRENEURS ARE HELPING WOMENOWNED COMPANIES TO FORM AND GROW OTHER SERVICE CONCERNS INCLUDING BANKS INSURERS AND LAW FIRMS ARE SEEKING NEW WAYS TO TAILOR THEIR APPROACHES TO WOMEN'S BUSINESSES AT THE SAME TIME COLLEGES ARE JOCKEYING TO BECOME MAJOR CENTERS OF RESEARCH ON WHAT MAKES FEMALE BUSINESS OWNERS TICK THE FLURRY OF ATTENTION REFLECTS THE RAPID GROWTH IN WOMENOWNED BUSINESSES THE NUMBER OF SUCH ENTERPRISES GREW 58 TO 41 MILLION IN 1987 FROM 1982 WHILE THEIR ANNUAL RECEIPTS ROSE TO 278 BILLION FROM 98 BILLION THE LATEST US GOVERNMENT FIGURES SHOW THE NUMBER OF WOMENOWNED BUSINESSES INCLUDING CATEGORIES NOT MEASURED BY THE GOVERNMENT TOTALED 65 MILLION LAST YEAR ESTIMATES THE NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS OR NAWBO A TRADE GROUP BASED IN CHICAGO YET DESPITE THEIR INCREASING NUMBERS WOMENOWNED BUSINESSES STILL PUZZLE MARKETERS AND RESEARCHERS THERE HAVE BEEN FEW STUDIES OF FEMALE BUSINESS OWNERS FOR INSTANCE AND MOST DRAW THEIR CONCLUSIONS FROM SMALL UNREPRESENTATIVE SAMPLES ENTER SETON HILL COLLEGE IN GREENSBURG PA THE CATHOLIC WOMEN'S SCHOOL AIMS TO BECOME A NATIONAL CLEARINGHOUSE ON RESEARCH AND PROGRAMS FOR WOMEN ENTREPRENEURS IT RECEIVED 18 MILLION IN FEDERAL FUNDS TO LAUNCH THIS YEAR A NATIONAL EDUCATION CENTER FOR WOMEN IN BUSINESS THE CENTER PLANS TO SPONSOR CONFERENCES ON FEMALE ENTREPRENEURSHIP IN 30 CITIES NATIONWIDE THIS FALL LAST WEEK THE SETON HILL CENTER HELD TWO CONFERENCES ON WOMEN OWNERS FOR SERVICE PROFESSIONALS AND RESEARCHERS JOYCE THOMSON AN ATTENDEE AT ONE CONFERENCE TYPIFIES THE FEMALE ENTREPRENEURS WHO INCREASINGLY TARGET FELLOW FEMALE ENTREPRENEURS AS CUSTOMERS MS THOMSON AN OWNER OF A SMALL MURRYSVILLE PA ACCOUNTING FIRM SAYS 15 WOMEN CONSTRUCTION CONTRACTORS ALREADY ARE CLIENTS SHE HOPES TO ADD FIVE MORE IN THE NEXT YEAR TO LOCATE THEM SHE SAYS SHE IS JOINING A LOCAL CHAPTER OF THE NATIONAL ASSOCIATION OF WOMEN IN CONSTRUCTION LARGE COMPANIES ALSO ARE TAPPING WOMEN'S BUSINESS NETWORKS TO ATTRACT BUSINESS FROM WOMENOWNED FIRMS EARLIER THIS MONTH FOR EXAMPLE AMERICAN TELEPHONE & TELEGRAPH CO EXTENDED DISCOUNTS ON ITS LONGDISTANCE SERVICES AND BUSINESS COMMUNICATIONS EQUIPMENT TO MEMBERS OF NAWBO THE TRADE GROUP WHILE THE COMPANY OFFERS SIMILAR DISCOUNTS TO MORE THAN 100 OTHER ASSOCIATIONS NAWBO IS THE FIRST REPRESENTING WOMEN BUSINESS OWNERS AN AT&T SPOKESMAN SAYS THIS IS OUR NEXT GENERATION OF CUSTOMERS HE ADDS BUT OTHER MARKETERS ARE STILL STRUGGLING TO FIND BETTER WAYS TO CATER TO WOMEN BUSINESS OWNERS LAST WEEK CAPITAL HOLDING CORP A FINANCIALSERVICES HOLDING COMPANY IN LOUISVILLE KY QUIETLY SCUTTLED A THREEYEAR EFFORT TO SERVE WOMENOWNED FIRMS THROUGH ITS COMPASS ROSE CORP UNIT COMPASS ROSE HAD OFFERED TRAINING FOR WOMEN CONSIDERING BUSINESS OWNERSHIP AND LOANS FOR A HANDFUL WITH SOLID BUSINESS PLANS CAPITAL OFFICIALS SAY COMPASS ROSE HAD EMPHASIZED LENDING WHICH TOOK THE UNIT TOO FAR AFIELD FROM CAPITAL'S BASIC INDIVIDUAL INSURANCE BUSINESS CAPITAL SAYS IT IS NEGOTIATING TO SELL THE UNIT POSSIBLY TO ITS FORMER PRESIDENT REBECCA MADDOX MS MADDOX SAYS SHE ALSO INTENDS TO START A NONPROFIT FOUNDATION THAT WOULD MAKE LOANS TO WOMENOWNED BUSINESSES SHE PLANS TO RAISE 40 MILLION BY ASKING FOUR MILLION WOMEN BUSINESS OWNERS AND OTHERS TO CONTRIBUTE AT LEAST 10 EACH ANITA PORCO OWNER OF NURSES TODAY INC A TEMPORARY EMPLOYMENT SERVICE FOR NURSES IN DALLAS FINDS MS MADDOX'S LOAN FUND IDEA EXCITING THOUGH HER COMPANY HAS BEEN OPERATING FOR 10 YEARS MS PORCO SAYS SHE STILL FACES DIFFICULTY GETTING FINANCING AS A WOMANBUSINESS OWNER WHEN SHE APPLIED FOR A 25000 LINE OF CREDIT LAST YEAR SHE SAYS HER BANKER TOLD HER THAT SHE DIDN'T NEED THE MONEY BECAUSE HER FIRM'S OPERATING FUNDS WERE ON DEPOSIT SHE SUSPECTS A MALE OWNER'S REQUEST WOULD HAVE BEEN TAKEN MORE SERIOUSLY SHE GOT HER CREDIT LINE BY SWITCHING BANKS WOMEN BUSINESS OWNERS DIFFER GREATLY FROM THEIR MALE COUNTERPARTS IN SEVERAL WAYS RESEARCHERS REPORTED AT THE SETON HILL CENTER'S SECOND CONFERENCE LAST WEEK PARTICIPANTS FOCUSED ON A PAPER BY CANDIDA G BRUSH A BOSTON UNIVERSITY RESEARCHER WHICH SUMMARIZED RESEARCH ABOUT FEMALE ENTREPRENEURS STUDIES SO FAR INDICATE THAT WOMEN OWNERS USE LESS FORMAL AND MORE PARTICIPATIVE MANAGEMENT STYLES THAN MEN THEY START THEIR COMPANIES WITH HALF AS MUCH CAPITAL AS MEN DO NOT SURPRISINGLY FINANCING AND FINANCIAL MANAGEMENT ARE WOMEN'S BIGGEST OBSTACLES THOUGH THAT IS NOT ALWAYS TRUE FOR MEN WOMEN ALSO DEFINE THEIR BUSINESS GOALS MORE BROADLY THAN MEN THEY PURSUE BROADER GOALS SUCH AS CUSTOMER SATISFACTION AS WELL AS PROFIT AND GROWTH FEMALE AND MALE ENTREPRENEURS DIFFER IN YET ANOTHER WAY SAYS AUTHOR AND ENTREPRENEUR JOLINE GODFREY WOMEN USUALLY DON'T START A BUSINESS UNTIL THEY REACH THEIR MID30S MEN OFTEN START BUSINESSES WHILE IN THEIR TWENTIES MS GODFREY COFOUNDER OF AN INCOME OF HER OWN A SAN JOSE CALIF COMPANY THAT OFFERS ENTREPRENEURIAL EDUCATION WANTS WOMEN TO THINK ABOUT BUSINESS EARLIER SHE INTENDS TO OPEN A CAMP NEXT YEAR FOR TEENAGE GIRLS CONSIDERING BUSINESS OWNERSHIP THE SETON HILL CENTER ALSO IS FOSTERING FEMALE ENTREPRENEURSHIP AT A YOUNG AGE DURING LAST WEEK'S PAIR OF CONFERENCES THE CENTER HELD AN AWARDS DINNER FOR THE PENNSYLVANIA JUNIOR AND HIGH SCHOOL WINNERS OF ITS FIRST BUSINESSPLAN COMPETITION FOR GIRLS MELISSA BERRINGER A HIGH SCHOOL SENIOR FROM NORTH HUNTINGTON PA SAYS WRITING HER WINNING PLAN MADE HER SEE HER PARENTS AS POTENTIAL BUSINESS RIVALS I ALWAYS THOUGHT I WOULD FOLLOW IN THEIR FOOTSTEPS BUT NOW I WANT TO COMPETE AGAINST THEM SAYS THE 18YEAROLD ASPIRING ENTREPRENEUR HER FAMILY OWNS A SWIMMING POOL SUPPLIES AND INSTALLATION COMPANY WHERE SHE NOW WORKS PART TIME SHE WANTS TO RAISE 250000 TO START A SIMILAR FIRM ANOTHER WINNER 12YEAROLD EMILY KAY GUTHRIE OF SPRING CHURCH PA HOPES TO OPEN AN INTERIORDESIGN COMPANY AT THE AWARDS CEREMONY SHE EXHIBITED HER SENSE OF STYLE BY SPORTING A WHITE POLKADOT NAVY PANTS DRESS AND A WHITE STRAW HAT BUT SHE WON EVEN MORE KUDOS FOR THE REALISM OF HER BUSINESS PLAN SHE PROJECTS A 6570 LOSS DURING THE FIRST SIX MONTHS 9305130163 930513 CANADA WHEAT STOCKS AT MARCH 31 DECLINED 42 FROM YEAR AGO OTTAWA CANADIAN WHEAT STOCKS TOTALED 7846 MILLION BUSHELS AT MARCH 31 A 42 DECLINE FROM A YEAR EARLIER SAID STATISTICS CANADA A GOVERNMENT AGENCY THE STOCKS INCLUDE ALL TYPES OF WHEAT HELD ON FARMS AND AT ELEVATORS AND OTHER COMMERCIAL LOCATIONS OF THE TOTAL DURUM WHEAT ACCOUNTED FOR 1217 MILLION BUSHELS AN 181 DECLINE FROM A YEAR AGO DURUM IS USED TO MAKE PASTA PRODUCTS OATS STOCKS TOTALED 827 MILLION BUSHELS AT MARCH 31 A 198 INCREASE FROM A YEAR EARLIER STOCKS OF CANOLA ALSO KNOWN AS RAPESEED TOTALED 709 MILLION BUSHELS AN 181 DECLINE FROM A YEAR EARLIER CANOLA IS CANADA'S BIGGEST OILSEED CROP 9305130162 930513 WHO'S NEWS DILLON READ & CO DILLON READ & CO NEW YORK LILLI A GORDON 38 YEARS OLD AN ADVISER TO INSTITUTIONAL INVESTORS AND CORPORATE CLIENTS ON CORPORATE GOVERNANCE AND OTHER ISSUES JOINED THIS INVESTMENT BANKING COMPANY AS A SENIOR VICE PRESIDENT IN ITS ASSET MANAGEMENT DEPARTMENT SHE HAD HEADED HER OWN CONSULTANCY GORDON GROUP INC AT DILLON READ SHE WILL BE RESPONSIBLE FOR THE DIRECTION OF PLACEMENT ACTIVITIES FOR THE FIRM'S PRIVATE INVESTMENT PARTNERSHIPS 9305130161 930513 INTERNATIONAL PERNODRICARD REVENUE OFF PARIS FRENCH DRINKS GROUP PERNODRICARD SA SAID ITS 1993 FIRSTQUARTER REVENUE DECLINED 24 FROM A YEAR EARLIER CHAIRMAN PATRICK RICARD ADDRESSING A SHAREHOLDERS' MEETING DIDN'T PROVIDE ANY FIGURES FOR REVENUE IN THE FIRST THREE MONTHS BUT INDICATED THAT AFTER ELIMINATING EXCHANGE RATE VARIATIONS REVENUE WOULD HAVE SHOWN A SLIGHT INCREASE MR RICARD SAID THE GOVERNMENT'S PLAN ANNOUNCED THIS WEEK TO INCREASE THE TAX ON STRONG ALCOHOLIC BEVERAGES BY 16 SHOULDN'T HAVE A SIGNIFICANT IMPACT UNTIL 1994 9305130159 930513 WHO'S NEWS PETROLEUM HEAT & POWER CO PETROLEUM HEAT & POWER CO STAMFORD CONN GEORGE P RUSSELL 38 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT MARKETING A NEW POSITION AT THIS DISTRIBUTOR OF HOME HEATING OIL MR RUSSELL HAD BEEN VICE PRESIDENT AND CHIEF MARKETING OFFICER OF THE HARVARD COMMUNITY HEALTH PLAN A HEALTH MAINTENANCE ORGANIZATION IN NEW ENGLAND 9305130157 930513 INTERNATIONAL ELF SANOFI 1STPERIOD SALES DOWN PARIS FRENCH PHARMACEUTICALS AND COSMETICS GROUP ELF SANOFI SA SAID FIRSTQUARTER 1993 GROUP CONSOLIDATED REVENUE WAS DOWN 1 TO 533 BILLION FRANCS 9827 MILLION FROM 538 BILLION FRANCS A YEAR AGO THE UNIT OF THE STATE OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE SAID ITS HUMAN HEALTHCARE PRODUCT SALES WERE CONSTRAINED BY HEALTHCARE SPENDING CONSTRAINTS IN GERMANY AND ITALY THROUGH MARCH FRENCH SALES WERE UP 1 TO 3 BILLION FRANCS FROM 297 BILLION FRANCS A YEAR AGO BIOACTIVITIES SALES WHICH INCLUDE AGRICULTURAL PRODUCTS FELL 48 TO 195 BILLION FRANCS FROM 205 BILLION FRANCS A YEAR AGO PERFUMES AND BEAUTY PRODUCTS SALES ROSE 38 TO 378 MILLION FRANCS FROM 364 MILLION FRANCS A YEAR AGO 9305130156 930513 WHO'S NEWS MCDERMOTT INTERNATIONAL INC MCDERMOTT INTERNATIONAL INC NEW ORLEANS LAWRENCE R PURTELL WAS NAMED SENIOR VICE PRESIDENT GENERAL COUNSEL AND CORPORATE SECRETARY OF THIS ENERGY SERVICES CONCERN MR PURTELL 46 YEARS OLD WAS MOST RECENTLY VICE PRESIDENT AND GENERAL COUNSEL OF CARRIER CORP A UNIT OF UNITED TECHNOLOGIES CORP OF HARTFORD CONN HE SUCCEEDS FRANK C ALLEN 59 AS GENERAL COUNSEL MR ALLEN WAS NAMED VICE PRESIDENT ENVIRONMENTAL AFFAIRS SAFETY AND HEALTH AND RISK MANAGEMENT 9305130155 930513 ENTERPRISE JUDGE CLEARS WAY FOR INVESTOR GROUP TO RUN NUTRI/SYSTEM NEW YORK A US BANKRUPTCY COURT JUDGE IN PHILADELPHIA RESCINDED HIS ORDER NAMING AN INTERIM TRUSTEE FOR NUTRI/SYSTEM INC CLEARING THE WAY FOR A CHICAGO INVESTOR GROUP TO TAKE OPERATIONAL CONTROL SAID AN ATTORNEY FOR THE WEIGHTLOSS CONCERNS' FRANCHISEES JUDGE DAVID A SCHOLL NAMED THE TRUSTEE JOHN CARROLL LAST FRIDAY WHEN THE INVESTOR GROUP HEICO ACQUISITIONS FAILED TO NOTIFY HIM BEFORE A NOON DEADLINE THAT AN AGREEMENT HAD BEEN REACHED WITH SHAREHOLDERS OF THE BLUE BELL PA COMPANY AND ITS CREDITOR BANKS FOR HEICO TO RUN NUTRI/SYSTEM THE APPOINTMENT HAS PREVENTED HEICO FROM TAKING CONTROL NEVERTHELESS SHIPMENTS OF NUTRI/SYSTEM'S PROPRIETARY DIET FOODS TO FRANCHISEOWNED CENTERS BEGAN OVER THE WEEKEND UNDER THE DIRECTION OF THE TRUSTEE SAID JOHN FRANCIS GOUGH ATTORNEY FOR THE FRANCHISEES HE ADDED THAT FRANCHISEES HAVE PAID ABOUT 1 MILLION IN ADVANCE FOR THE SHIPMENTS IN AN EFFORT TO GIVE THE COMPANY SOME CASH FLOW HE ALSO SAID THAT HEICO ALREADY HAS PUT IN SOME MONEY TO PAY SALARIES AND OTHER EXPENSES REQUIRED TO RESTART THE COMPANY MICHAEL HEISLEY LEAD INVESTOR FOR HEICO ACQUISITIONS COULDN'T BE REACHED FOR COMMENT CALLS TO NUTRI/SYSTEM HEADQUARTERS WERE ANSWERED BY MACHINE AND NOT RETURNED NUTRI/SYSTEM PLUNGED INTO CHAOS TWO WEEKS AGO WHEN ITS CREDITOR BANKS ABRUPTLY SEIZED ITS CASH FORCING IT TO CLOSE ALL 283 COMPANYOWNED OUTLETS THE CRISIS THREATENED OPERATIONS OF 857 NUTRI/SYSTEM FRANCHISED CENTERS WHICH REMAIN OPEN BECAUSE IT SHUT DOWN THE PIPELINE OF SPECIAL PREPACKAGED MEALS THAT THE FRANCHISEE CENTERS SELL TO CLIENTS ON THE WEIGHTLOSS PROGRAM IN AN EFFORT TO RESTART SHIPMENT OF THE MEALS THE FRANCHISEE ORGANIZATION LAST WEEK FILED A CHAPTER 7 BANKRUPTCY LIQUIDATION PETITION AGAINST THE COMPANY AND SOUGHT TO HAVE AN INTERIM TRUSTEE APPOINTED TO MANAGE THE COMPANY 9305130154 930513 NAME CHANGE PLANNED BY MIDWEST EXCHANGE CHICAGO MEMBERS OF THE MIDWEST STOCK EXCHANGE THE NATION'S SECOND BIGGEST STOCK MARKET IN TERMS OF VALUE OF SHARES TRADED VOTED TO CHANGE THE NAME OF THEIR INSTITUTION TO THE CHICAGO STOCK EXCHANGE THE EXCHANGE FOUNDED IN 1882 WAS ORIGINALLY KNOWN AS THE CHICAGO STOCK EXCHANGE ITS NAME WAS CHANGED TO THE MIDWEST STOCK EXCHANGE IN 1949 AFTER IT ACQUIRED STOCK EXCHANGES IN CLEVELAND ST LOUIS AND MINNEAPOLIS MEMBERS OF THE EXCHANGE CHOSE TO RESTORE THE ORIGINAL NAME BECAUSE OUR INSTITUTION IS RICH IN TRADITION AND WE'RE PROUD OF OUR CHICAGO HERITAGE SAID HOMER J LIVINGSTON JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE EXCHANGE WE OPERATE IN A VERY COMPETITIVE ENVIRONMENT AND WANT TO BUILD THE IDENTITY OF OUR EXCHANGE LOCALLY NATIONALLY AND INTERNATIONALLY HE SAID THE NAME CHANGE WILL BE EFFECTIVE IN JULY 9305130153 930513 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN MICHAEL D FRAIZER 34 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND GENERAL MANAGER OF COMMERCIAL REAL ESTATE FINANCING AT THIS COMPANY'S GE CAPITAL UNIT STAMFORD CONN HE SUCCEEDS JOHN O DETERDING WHO IS RETIRING JULY 1 MR FRAIZER HAD BEEN PRESIDENT AND REPRESENTATIVE DIRECTOR GE JAPAN GE HAS INTERESTS IN AIRCRAFT ENGINES PLASTICS INDUSTRIAL AND CONSUMER PRODUCTS BROADCASTING AND FINANCIAL SERVICES 9305130152 930513 TECHNOLOGY SILICON GRAPHICS SCOTT INSTRUMENTS REACH PACT ON VOICE SYSTEM DENTON TEXAS STRUGGLING SCOTT INSTRUMENTS CORP SAID IT SIGNED AN AGREEMENT TO PROVIDE SPEECH RECOGNITION SYSTEMS TO SILICON GRAPHICS INC OF MOUNTAIN VIEW CALIF FOR COMPUTER WORKSTATIONS THE SYSTEM WILL ALLOW SILICON GRAPHICS WORKSTATIONS NOT ONLY TO RESPOND TO SPOKEN COMMANDS BUT ALSO TO INTERRUPT THE USER TO RESOLVE AMBIGUITIES SCOTT INSTRUMENTS SAID THE COMPUTER WILL INTERRUPT THE SPEAKER AND ASK DID YOU SAY EIGHT OR WEIGHT SAID SCOTT INSTRUMENTS CHAIRMAN MARVIN PRESTON MR PRESTON SAID ROYALTIES FROM SILICON GRAPHICS COULD REACH 1 MILLION EASILY IN THE NEXT YEAR BUT THE COMPANY WAS NOT YET COUNTING ON THE ADDITIONAL REVENUE THE OPTION IS EXPECTED TO BE AVAILABLE IN THE SECOND HALF OF 1993 THE COMPANY SAID MR PRESTON SAID IT WILL BE THE FIRST TIME AN AUTOMATIC SPEECH RECOGNITION SYSTEM WILL BE INTEGRATED INTO A SYSTEM'S SOFTWARE DESIGN AND TIED INTO A PACKAGE SOLD BY A PERSONAL COMPUTER OR WORKSTATION MANUFACTURER SPEECH RECOGNITION SOFTWARE IS ON THE MARKET BUT MUST BE ADDED TO COMPUTER SYSTEMS AFTER THEY ARE BOUGHT LAST MONTH SCOTT INSTRUMENTS' AUDITOR ERNST & YOUNG RAISED DOUBTS ABOUT WHETHER SCOTT CAN REMAIN A GOING CONCERN AT THAT TIME THE COMPANY REPORTED THAT ITS FOURTHQUARTER LOSS WIDENED TO 495000 AND REVENUE FELL TO 483042 FROM 485007 A YEAR EARLIER IN LATE AMERICAN STOCK EXCHANGE TRADING YESTERDAY SCOTT INSTRUMENTS WAS QUOTED AT 2 UP 25 CENTS 9305130151 930513 LETTERS TO THE EDITOR WATERTIGHT THEORY THE SUCCESS OF EVIAN WATER ARTICLE APRIL 16 IS DUE TO A SIMPLE FAMILIAR PRINCIPLE BUY L'EAU SELL HIGH 9305130150 930513 WHO'S NEWS JOSEPHTHAL LYON & ROSS JOSEPHTHAL LYON & ROSS INC NEW YORK SCOTT A WEISMAN 38 YEARS OLD WAS NAMED HEAD OF THE INVESTMENT BANKING DEPARTMENT OF THIS SECURITIES FIRM DUTIES PREVIOUSLY HANDLED BY CHAIRMAN DAN PURJES MR WEISMAN WHO HAD BEEN A PARTNER IN THE LAW FIRM OF KELLEY DRYE & WARREN WAS ALSO NAMED A DIRECTOR INCREASING THE BOARD TO SIX MEMBERS 9305130149 930513 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN A LAPTOP AND A LEG UP LEAD GRADUATES' WISH LISTS IN AN ERA OF PRACTICAL GIFTS THE CLASS OF '93 WANTS HELP GETTING STARTED IN THE REAL WORLD PLEASE SEND GIFTS OF CASH A DININGROOM SET OR A COMPUTER YES THEY GOT A JOB BUT IT'S NOT ENOUGH TO SUPPORT THEMSELVES SAYS GLORIA MYKELBUST AN OFFICIAL AT CLAREMONT MCKENNA COLLEGE IN CALIFORNIA UNIVERSITY OF ROCHESTER ADMINISTRATOR JAN FITZPATRICK MAY GIVE HER SON A WASHING MACHINE AT NORTHEASTERN UNIVERSITY IN BOSTON KRISTON ANDERSON SAYS HER GRANDPARENTS WILL BUY HER A CAR AND HER MOTHER WILL HELP WITH AUTO INSURANCE THE BIG THING FOR HIGHSCHOOL SENIORS IN BUCKS COUNTY PA IS PAIDUP INSURANCE WHICH CAN TOP 1200 FOR TEEN DRIVERS SAYS A NESHAMINY SCHOOL DISTRICT OFFICIAL MANY PARENTS STILL INDULGE IN BIG GIFTS BOB BRADY PRESIDENT OF PARFUMS GIVENCHY GIVES HIS DAUGHTER DIAMOND EARRINGS SHE HAS WANTED FOR YEARS NEW YORK AD EXECUTIVE JUDY LOTAS WANTS DAUGHTER SASHA TO HAVE BOTH BASICS AND DREAMS HER PRESENT A SEWING MACHINE AND A PAIR OF PINK TOE SHOES TRIPS ABROAD ALL OR PARTLY FINANCED BY PARENTS ARE ALSO POPULAR BIG GIFTS ART IMITATES MARKETING AS GALLERIES PLAY TO DISTINCT AUDIENCES IN WEST HOLLYWOOD CALIF ART DEALERS MICHAEL KOHN AND JAN ABRAMS BRAVE RECESSION TO OPEN A GALLERY THAT SELLS ONLY WORKS ON PAPER ACROSS THE CONTINENT IN THE EAST VILLAGE NEW YORKERS PACK THE OPENING OF WHITE MALE RAGE A POINTEDLY POLITICALLY INCORRECT EXHIBIT PHOTOGRAPHER STEPHEN GRILLO ADMITS HE ISN'T REALLY ENRAGED HE WON SPACE BY BEATING THE CURATOR AT CHESS AT FOURCOLOR IMAGES IN NEW YORK BROWSERS READ A COMIC BOOK THAT SELLS FOR 400 A PAGE HOPING TO CAPITALIZE ON A SOTHEBY'S AUCTION OF AMERICAN IMPRESSIONIST PAINTER CHILDE HASSAM'S 1894 MASTERPIECE THE ROOM OF FLOWERS BERRYHILL GALLERIES MOUNTS ITS OWN EXHIBIT A ROOM OF HASSAMS AND IN A FRANK INVITATION TO A SHOW OF CONTEMPORARY PRINTS THIS WEEKEND PACE PRINTS IN NEW YORK TELLS CLIENTS THAT REFRESHMENTS WILL BE SERVED TO ENCOURAGE CONTEMPLATION AND ACQUISITIONS SOMETIMES THE SCHOOL BUS DROPS CHILDREN TOO LATE FOR A FREE BREAKFAST OR MOM'S STILL AT WORK NO DINNER A YOUNGSTERSONLY FEEDING PROGRAM HELPS FILL THE GAP CHILDREN CAN'T GO TO TRADITIONAL SOUP KITCHENS THEY NEED A PLACE THEY'RE NOT SCARED OF SAYS SHERRY MURONE OF THE SECOND HARVEST FOOD BANK OF COASTAL GEORGIA IN SAVANNAH WHO PIONEERED KIDS CAFE THE GROUP RUNS FIVE CAFES THAT CHILDREN CAN SAFELY WALK TO ALONE NOW QUAKER OATS CO AIDS A ROLLOUT OF THE CAFES WHICH COOK AND SERVE DONATED FOOD QUAKER WILL SOON OPEN A KIDS CAFE IN CHICAGO WHERE QUAKER AND SECOND HARVEST ARE BASED AND CONSIDERS OTHERS FOR HOUSTON AND LOUISVILLE KY WHERE IT ALSO HAS FACILITIES QUAKER SAYS IT CAN'T ALONE COVER THE US BUT IT WILL PROMOTE THE CAFE CONCEPT FOR OTHER FIRMS TO FOLLOW THE SAVANNAH GROUP SAYS IT CAN FEED 100 CHILDREN A SOLID MEAL EACH DAY FOR 5000 A YEAR COSTS RISE IF FOOD MUST BE BOUGHT OR IF SECURITY MUST BE PROVIDED THE CAFE ALSO HELPS FILL A GROWING WISH OF ITS WORKERS TO VOLUNTEER QUAKER SAYS JUST THE FAX WAS WHAT CONSUMER REPORTS PUBLISHER CONSUMERS UNION HAD IN MIND WHEN IT INSTRUCTED A FAX SERVICE TO ZAP ITS PRESS RELEASE TO SOME 1000 REPORTERS BUT THE FAXES HIT SOME DESKS TWICE THRICE AND UP TO EIGHT TIMES SOME 300 LETTERS OF APOLOGY FOLLOWED PAID FOR BY THE FAX FIRM FISHING MIGHT FETCH AS MUCH AS A BROADWAY PLAY SAY PENN STATE RESEARCHERS THEY ASKED PEOPLE HOW MUCH THEY WOULD PAY TO FISH IN A POPULAR PENNSYLVANIA CATCHANDRELEASE TROUT STREAM 4450 OR TO JUST WATCH WATERFOWL 4 THE STUDY ASSESSES THE ECONOMIC WORTH OF OUTDOOR ACTIVITIES AS AN ALTERNATIVE WAY TO VALUE PUBLIC LAND OUTOFDATE RATES ON MORTGAGEPAYMENT CALCULATORS MEAN A BOOM IN SALES OF THE GIZMOS FOR TERACO INC A MIDLAND TEXAS MAKER OF PROMOTIONAL GOODS IT LOWERS THE BOTTOM RATE ON ITS SLIDERULETYPE DEVICE TO 4 FROM 6 AND SELLS 500000 SINCE FALL 10 TIMES MORE THAN IN A NORMAL YEAR NEWSLETTERS CASH IN ON HEALTHCARE REFORM AND SO DO SEMINARS HEALTH POLICY WEEK A SEVENYEAROLD 395AYEAR NEWSLETTER IN ROCKVILLE MD SWITCHED ITS NAME TO HEALTH CARE REFORM WEEK WHEN PRESIDENT CLINTON WAS ELECTED THE REPORT SAW A NOTICEABLE INCREASE IN SALES SAYS PUBLISHER RICHARD HADLEY SINCE SEPTEMBER THE BUREAU OF NATIONAL AFFAIRS IN WASHINGTON HAS STARTED THREE HEALTHCARERELATED NEWSLETTERS AND PLANS TO LAUNCH NINE MORE BY THE END OF 1994 HEALTHCARE CONFERENCES DRAW BIG CROWDS BUT SPONSORS AREN'T RUSHING FUTURE PLANS WE'RE WAITING TO SEE SOMETHING DEFINITIVE FROM THE WHITE HOUSE THAT WE CAN REACT TO SAYS THOMAS GORSKI OF THE AMERICAN SOCIETY OF ASSOCIATION EXECUTIVES ANTHONY J JANNETTI INC WHICH MANAGES SEVERAL NURSES' GROUPS NOTES HIGHER ATTENDANCE OVERALL BUT SAYS IT WILL HOLD JUST ONE MORE CONFERENCE THAN IN 1992 A RECENT NATIONAL ASSOCIATION OF ORTHOPEDIC NURSES CONFERENCE DRAWS 2300 UP 15 FROM A YEAR EARLIER BRIEFS CHASE ERGONOMICS ALBUQUERQUE NM SAYS REPETITIVEMOTION INJURIES ARE SO COMMON THAT IT BEGINS SELLING ITS WRIST BRACES IN SOME SUPERMARKETS FORMER PRESIDENT REAGAN ON VIDEOTAPE HOSTED A TRIBUTE TO CHAIRMAN J PETER GRACE SHOWN AT THE WR GRACE & CO ANNUAL MEETING CRANK UP THE STAIRMASTERCHICAGO'S FANCY ATHLETIC CLUB ILLINOIS CENTER WELCOMES A NEW INHOUSE RESTAURANT PAT'S PIZZA 9305130148 930513 INTERNATIONAL CHARGEURS TO CUT PAYROLL PARIS CHARGEURS SA A FRENCH TEXTILE AND COMMUNICATIONS CONCERN WILL TRIM 1500 JOBS FROM ITS PAYROLL THIS YEAR OF WHICH 1300 WILL BE IN FRANCE DIRECTOR GENERAL EDOUARDO MALONE SAID MR MALONE SAID TEXTILE OPERATIONS WILL LOSE 900 POSITIONS INCLUDING 200 ABROAD THE GROUP'S CRUISE SHIP UNIT WILL DISMISS 300 WHILE ANOTHER 300 WILL BE TRIMMED FROM A LAND TRANSPORT UNIT AS REPORTED IN MARCH CHARGEURS'S NET GROUP PROFIT NEARLY DOUBLED IN 1992 FROM THE PREVIOUS YEAR BUT THE GAINS WERE LARGELY DUE TO A ONETIME AFTERTAX CAPITAL GAIN THE COMPANY WARNED THAT 1993 WILL BE A VERY DIFFICULT YEAR FOR EUROPE AND CHARGEURS 9305130147 930513 WHO'S NEWS MAGELLAN PETROLEUM CORP MAGELLAN PETROLEUM CORP HARTFORD CONN PRESIDENT BENJAMIN W HEATH 78 YEARS OLD AND ROY M HOPKINS 65 MANAGING DIRECTOR OF MAGELLAN PETROLEUM AUSTRALIA LTD WILL RETIRE JUNE 30 MR HEATH WILL BE SUCCEEDED BY JAMES R JOYCE 52 WHO ALSO WILL CONTINUE AS MAGELLAN'S CHIEF FINANCIAL OFFICER MR HEATH ONE OF MAGELLAN'S FOUNDERS TOOK IT INTO AUSTRALIAN PETROLEUM EXPLORATION IN THE 1960S HE WILL CONTINUE AS A DIRECTOR AND SERVE AS A CONSULTANT TO THE COMPANY MR HOPKINS WILL CONTINUE AS A DIRECTOR OF THE AUSTRALIAN UNIT BUT WILL STEP DOWN AS A DIRECTOR OF THE PARENT MR JOYCE WILL SUCCEED HIM IN THAT BOARD SEAT 9305130146 930513 VARICARE SEES RECORD RESULTS ROCHESTER NY VARICARE INC CREDITING HIGHER PATIENT COUNTS IN FLORIDA AND COST CONTROLS SAID IT EXPECTS RECORD REVENUE AND EARNINGS FOR THE YEAR ENDING SEPT 30 FOR FISCAL 1992 WHICH HAD THE PREVIOUS RECORD VARICARE EARNED 31 MILLION OR 58 CENTS A SHARE ON REVENUE OF 632 MILLION THE COMPANY OPERATES 21 LONGTERM HEALTH CARE FACILITIES IN FOUR STATES 9305130145 930513 TREASURY DIDN'T TELL PANEL OF PLAN TO ALTER BORROWING WASHINGTON THE TREASURY IN AN UNUSUAL MOVE KEPT ITS PRIVATESECTOR ADVISORY COMMITTEE IN THE DARK ABOUT ITS PRECISE PLANS TO ALTER ITS BORROWING MIX THROUGH THE COMMITTEE'S MAY MEETING WITH DEPARTMENT OFFICIALS THE TREASURY BORROWING ADVISORY COMMITTEE OF THE PUBLIC SECURITIES ASSOCIATION COMPOSED OF VETERAN BONDMARKET PLAYERS HAD URGED AGAINST ANY SHIFT FROM LONGTERM BORROWING AND TOWARD SHORTERTERM BORROWING AT THEIR MAY 5 MEETING THE COMMITTEE SAID THE TREASURY'S PROTRACTED REVIEW OF THE BORROWING MIX QUESTION HAD CREATED MARKET UNCERTAINTY FUELED MARKET VOLATILITY AND ULTIMATELY INCREASED FINANCING COSTS TO THE TREASURY COPIES OF THE PANEL'S REPORT WERE RELEASED BY THE TREASURY AS IS TRADITIONAL THE PANEL WAS ASKED BY THE TREASURY LAST WEEK TO RECOMMEND THE BEST MIX OF LONGTERM AND SHORTTERM BORROWING FOR THE CURRENT QUARTER AND THE FOLLOWING TWO QUARTERS BUT IT WASN'T ALERTED TO THE TREASURY'S DECISION TO ALTER ITS BORROWING MIX BY CUTTING THE AMOUNT OF 30YEAR BONDS SOLD EACH YEAR AND ELIMINATING ITS SEVENYEAR NOTES SO ITS RECOMMENDATIONS WERE IRRELEVANT 9305130144 930513 EPA TO SEEK DELAYS IN NEW REQUIREMENTS FOR MUNICIPAL DUMPS WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY WILL PROPOSE DELAYING THE IMPLEMENTATION OF RULES GOVERNING MUNICIPAL SOLIDWASTE LANDFILLS UNDER A SET OF 1991 STANDARDS ISSUED PURSUANT TO THE 1984 AMENDMENTS TO THE RESOURCE CONSERVATION RECOVERY ACT THE LANDFILLS WILL BE SUBJECT FOR THE FIRST TIME TO COMPREHENSIVE FEDERAL ENVIRONMENTAL REQUIREMENTS AMONG THEM THAT NEW LANDFILLS PUT PLASTIC OR VINYL LINERS BENEATH SOLID WASTE TO PREVENT LEACHING INTO GROUND WATER BUT THE EPA MAINTAINS THAT CITIES AND STATES AS WELL AS THE FEDERAL GOVERNMENT NEED MORE TIME TO IMPLEMENT THE NEW STANDARDS THE DELAY IS BAD NEWS FOR MAJOR TRASH HAULERS WASTE MANAGEMENT INC AND BROWNINGFERRIS INDUSTRIES INC WITH MORE THAN 100 DUMPS EACH THEY'VE BEEN HOPING THE REQUIREMENTS WOULD BE QUICKLY AND AGGRESSIVELY APPLIED SO THAT OTHER DUMPS OWNED BY MUNICIPALITIES OR SMALLER TRASH HANDLERS WOULD CLOSE THAT WOULD HELP REDUCE COMPETITION AND ALLOW THE BIG HAULERS TO INCREASE PRICES THE EPA SAID IT WOULD CALL FOR A SIXMONTH EXTENSION FROM OCT 9 1993 TO APRIL 9 1994 FOR ALL MUNICIPAL LANDFILLS TO ALLOW THE EPA TO APPROVE STATE PERMIT PROGRAMS IN ADDITION THE AGENCY WILL PROPOSE ALLOWING STATES TO GRANT AT THEIR DISCRETION A FURTHER EXTENSION OF SIX TO 12 MONTHS TO COMMUNITIES THAT HAVE A GOOD FAITH RECORD BUT NEED MORE TIME TO COMPLETE THE PERMITTING PROCESS THE AGENCY ALSO WILL CALL FOR A ONEYEAR EXTENSION FROM APRIL 9 1994 TO APRIL 9 1995 OF THE REQUIREMENT THAT MUNICIPAL WASTE DUMPS PROVIDE FINANCIAL ASSURANCE THAT THEY HAVE THE WHEREWITHAL TO CLOSE ANY GIVEN LANDFILL AND MONITOR IT FOR 30 YEARS THEREAFTER THE EPA SAID IT WILL PUBLISH A RULE PROPOSING THE DELAY BY THE END OF JUNE 9305130143 930513 KAUFMAN & BROAD HOME NOTES LOS ANGELES KAUFMAN & BROAD HOME CORP SAID IT PLANS TO REDEEM ON JUNE 7 ALL OF ITS 405 MILLION FACE AMOUNT OF ZEROCOUPON CONVERTIBLE NOTES OUTSTANDING DUE 2004 EACH OF THE NOTES WILL BE REDEEMED AT A PRICE OF 41626 PER 1000 FACE AMOUNT EQUAL TO THE ISSUE PRICE PLUS ORIGINAL ISSUE DISCOUNT ACCRUED TO THE REDEMPTION DATE THE HOME BUILDER SAID THE NOTES WHICH ARE LIQUID YIELD OPTION NOTES ARE CONVERTIBLE INTO COMMON SHARES AT THE RATE OF 1469 SHARES PER 1000 FACE AMOUNT KAUFMAN & BROAD SHARES CLOSED YESTERDAY AT 16625 UP 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING KAUFMAN & BROAD SAID THE REDEMPTION WILL BE FINANCED WITH PROCEEDS FROM A RECENT OFFERING OF SENIOR SUBORDINATE NOTES 9305130142 930513 REINSURANCE FIRM GETS 300 MILLION IN INITIAL OFFERING BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ZURICH REINSURANCE CENTRE HOLDINGS INC A NEWLY FORMED COMPANY RAISED 300 MILLION THROUGH ITS INITIAL PUBLIC OFFERING OF STOCK 47 MILLION MORE THAN PLANNED ALTHOUGH SEVERAL OTHER REINSURANCE COMPANIES HAVE GONE PUBLIC RECENTLY THE ZURICH REINSURANCE OFFERING IS UNUSUAL BECAUSE UNLIKE THE OTHERS THE COMPANY HAS NO TRACK RECORD LIKE THE OTHERS THOUGH IT SHOWS INVESTOR CONFIDENCE THAT A TURNAROUND IN THE PROPERTY AND CASUALTY INSURANCE INDUSTRY WHICH HAS SEEN PRICES AND PROFITS DIVE FOR SIX YEARS IS IMMINENT INVESTORS EXPECT AN UPTURN DESPITE THE ABSENCE OF HIGHER PRICES AND SOME WALL STREET ANALYSTS' CONTENTIONS THAT A TURNAROUND WON'T OCCUR ANYTIME SOON WHAT YOU ARE SEEING IS A BUYING PANIC SAID CHARLES RONSON ANALYST WITH BALESTRA CAPITAL A MONEY MANAGEMENT FIRM WALL STREET IS ENAMORED WITH REINSURANCE REINSURANCE COMPANIES WOULD BE THE FIRST TO BENEFIT FROM A CYCLE TURN ZURICH REINSURANCE HAD ORIGINALLY EXPECTED TO SELL 855 MILLION SHARES FOR ABOUT 2950 A SHARE INSTEAD THE COMPANY SOLD THE STOCK AT 35 A SHARE THE 300 MILLION OF NEW CAPITAL COMPLEMENTS 340 MILLION ALREADY INVESTED BY TWO INSURANCE COMPANIES BERMUDABASED CENTRE REINSURANCE HOLDINGS INC A UNIT OF ZURICH INSURANCE CO OF SWITZERLAND AND NORWICH VTBASED FUND AMERICAN ENTERPRISES HOLDINGS INC FOLLOWING THE OFFERING CENTRE REINSURANCE OWNS 57 OF THE COMPANY FUND AMERICAN OWNS 9 AND THE PUBLIC OWNS 34 PART OF THE INTEREST IN ZURICH REINSURANCE STEMS FROM THE INVOLVEMENT OF JOHN BYRNE CHAIRMAN OF FUND AMERICAN MR BYRNE ENGINEERED THE TURNAROUND OF GEICO CORP IN THE EARLY 1980S AND LATER RAN FIREMAN'S FUND INSURANCE CO MR BYRNE WHO WENT ON THE ROAD SHOW WILL SERVE AS A BOARD MEMBER ZURICH REINSURANCE WILL BE ONE OF THE BIGGEST REINSURERS IN THE COUNTRY AND THE BIGGEST IN ITS NICHE BROKERED REINSURANCE BROKERED REINSURERS GET BUSINESS THROUGH INSURANCE BROKERS RATHER SEEKING IT DIRECTLY FROM COMPANIES BROKERED REINSURERS ACCOUNT FOR ABOUT HALF THE REINSURANCE MARKET WE HAVE A SHORTAGE OF CAPITAL AS FAR AS CATASTROPHES ARE CONCERNED SAID BOB O'LEARY PRESIDENT OF WILLCOX INC A REINSURANCE BROKER THIS IS A WELCOME ADDITION TO THE MARKET SHARES IN THE COMPANY BEGAN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE STOCK CLOSED UNCHANGED AT 35 9305130141 930513 WHO'S NEWS LYDALL INC LYDALL INC MANCHESTER CONN THIS FIBERBASED MATERIALS CONCERN NAMED TWO NEW DIRECTORS BOTH FILLING VACANCIES NAMED WERE RAYMOND J LANZI 54 YEARS OLD AND PRESIDENT OF THE COMPANY'S SOUTHERN PRODUCTS DIVISION AND ELLIOTT F WHITELY 49 AND PRESIDENT OF THE COMPANY'S TECHNICAL PAPERS UNIT SHAREHOLDERS AT THE COMPANY'S ANNUAL MEETING HELD YESTERDAY APPROVED A MANAGEMENT PROPOSAL TO ELECT ALL BOARD MEMBERS ANNUALLY REDUCING TERMS TO ONE YEAR FROM THREE YEARS PREVIOUSLY DIRECTORS WERE ELECTED ON A STAGGERED BASIS 9305130140 930513 FINANCING BUSINESS TELOR OPHTHALMIC PHARMACEUTICALS INC TELOR OPHTHALMIC PHARMACEUTICALS INC SAID IT BEGAN AN INITIAL PUBLIC OFFERING OF 25 MILLION COMMON SHARES AT 8 EACH ALEX BROWN & SONS INC IS THE MANAGING UNDERWRITER FOR THE OFFERING TELOR SAID IN WOBURN MASS THE COMPANY ADDED THAT IT GRANTED UNDERWRITERS AN OPTION TO PURCHASE AN ADDITIONAL 375000 COMMON SHARES FOR OVERALLOTMENTS IF ANY TELOR IS DEVELOPING DRUGS TO TREAT AGERELATED EYE DISEASES AND FOR USE IN OPHTHALMIC SURGERY 9305130139 930513 WHO'S NEWS ODETICS INC ODETICS INC ANAHEIM CALIF PAUL E WRIGHT 61YEAROLD CHAIRMAN OF CHRYSLER TECHNOLOGIES CORP WAS ELECTED A DIRECTOR OF THIS MAKER OF INFORMATION AUTOMATION PRODUCTS INCREASING THE BOARD TO SEVEN MEMBERS 9305130138 930513 WHO'S NEWS MACKENZIE FINANCIAL CORP MACKENZIE FINANCIAL CORP TORONTO JAMES F O'DONNELL RESIGNED AS PRESIDENT AND A DIRECTOR OF THIS FINANCIAL SERVICES CONCERN UNTIL A PERMANENT APPOINTMENT IS MADE THE COMPANY SAID VICE CHAIRMAN WILLIAM G CRERAR 56 YEARS OLD WILL ACT AS PRESIDENT THE COMPANY SAID IN A STATEMENT THAT MR O'DONNELL HAS EXPRESSED AN INTEREST IN PURSUING OTHER BUSINESS OPPORTUNITIES BUT WILL STAY ON AS A DIRECTOR OF THE COMPANY'S INVESTMENT MANAGEMENT SUBSIDIARY THE COMPANY DIDN'T RETURN PHONE CALLS 9305130137 930513 BT FINANCIAL SEES HIGHER NET JOHNSTOWN PA BT FINANCIAL CORP CITING STRONGER LOAN DEMAND PROJECTED THAT EARNINGS WILL CLIMB 6 TO 8 FROM LAST YEAR'S NET INCOME OF 86 MILLION OR 274 A SHARE THE BANK HOLDING COMPANY ALSO SAID IT EXPECTS TO REPORT A RETURN ON ASSETS FOR 1993 OF BETWEEN 09 AND 1 COMPARED WITH 097 LAST YEAR RETURN ON EQUITY SHOULD BE BETWEEN 12 AND 15 IN 1993 BT'S RETURN ON EQUITY WAS 1271 BT PREDICTED A DECLINE IN ITS LOANLOSS PROVISION BECAUSE OF HIGHER RESERVES LAST YEAR RELATIVELY LOW NONPERFORMING LOANS AND BECAUSE ITS PENDING MERGER PARTNER FIRSTSOUTH BANCORP HAS SUFFICIENT RESERVES LAST YEAR BT HAD A LOANLOSS PROVISION OF 29 MILLION 9305130136 930513 GTE GETS CONTRACTS STAMFORD CONN GTE CORP ANNOUNCED THE SIGNING OF CONTRACTS VALUED AT MORE THAN 17 MILLION TO PROVIDE SATELLITE COMMUNICATIONS FOR BANKING COMPANY FIRST UNION CORP CHARLOTTE NC THE FIRST OF THE TWO CONTRACTS WILL EXTEND FIRST UNION'S BANK COMMUNICATIONS NETWORK ADDING 300 LOCATIONS IN THE MIDATLANTIC REGION UNDER THE SECOND CONTRACT GTE A PROVIDER OF TELECOMMUNICATIONS SERVICES WILL OPERATE THE NETWORK OVER A FIVEYEAR PERIOD 9305130135 930513 WHO'S NEWS GELMAN SCIENCES INC GELMAN SCIENCES INC ANN ARBOR MICH KIM A DAVIS WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS COMPANY THAT MAKES MICROFILTRATION PRODUCTS FOR LABORATORY RESEARCH HIGHTECHNOLOGY AND HEALTHCARE APPLICATIONS MR DAVIS 42 YEARS OLD HAD BEEN CHIEF OPERATING OFFICER OF PROMEGA CORP A WISCONSIN BIOTECHNOLOGY CONCERN MR DAVIS SUCCEEDS CHARLES GELMAN AS PRESIDENT MR GELMAN THE COMPANY FOUNDER WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9305130134 930513 INTERNATIONAL EASTERN GERMANY'S PPI RISES WIESBADEN GERMANY EASTERN GERMANY'S PRODUCER PRICE INDEX ROSE 03 IN MARCH AND 08 FROM MARCH 1992 THE FEDERAL STATISTICS OFFICE REPORTED IN FEBRUARY THE PPI WAS UP 02 AND 09 RESPECTIVELY THE INDEX WHICH IS BASED ON 1989 EQUAL TO 100 STOOD AT 643 UP FROM 641 IN FEBRUARY THE AGENCY SAID THE STATISTICS OFFICE SAID THE FOLLOWING ITEMS WERE CONSIDERABLY MORE EXPENSIVE THAN IN FEBRUARY OIL PRODUCTS UP 36 IRON AND STEEL UP 08 AND PRINTED MATERIALS UP 14 NOTABLE PRICE DECLINES WERE RECORDED IN NONFERROUS METALS AND NONFERROUS HALFPROCESSED METALS DOWN 03 PROCESSED WOOD DOWN 10 AND TEXTILES DOWN 03 9305130133 930513 CHICAGO MILWAUKEE CONVERSION CHICAGO CHICAGO MILWAUKEE CORP SAID HOLDERS APPROVED CONVERTING THE COMPANY TO AN OPENEND INVESTMENT COMPANY FROM A CLOSEDEND INVESTMENT FIRM THE COMPANY SAID IT EXPECTS THE CONVERSION WILL OCCUR BY EARLY JULY AFTER COMPLETION OF SEVERAL RELATED TRANSACTIONS AN OPENEND INVESTMENT COMPANY CONTINUALLY SELLS AND REDEEMS SHARES A CLOSEDEND INVESTMENT FIRM OPERATES AN INVESTMENT FUND WITH A LIMITED NUMBER OF SHARES OUTSTANDING 9305130132 930513 WHO'S NEWS SANTA FE PACIFIC PIPELINE PARTNERS LP SANTA FE PACIFIC PIPELINE PARTNERS LP LOS ANGELES ROBERT D KREBS WAS ELECTED A DIRECTOR OF SANTA FE PACIFIC PIPELINES INC THE GENERAL PARTNER OF SANTA FE PACIFIC PIPELINE PARTNERS LP MR KREBS 50 SUCCEEDS ROBERT GILMORE WHO REACHED THE MANDATORY RETIREMENT AGE OF 72 MR KREBS IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF SANTA FE PACIFIC CORP WHICH IS THE PARENT OF SANTA FE PACIFIC PIPELINES INC THE PARTNERSHIP IS AN INDEPENDENT REFINED PRODUCTS PIPELINE 9305130131 930513 INTERNATIONAL ITALY'S COMMERCIAL VEHICLE SALES MILAN SALES OF SMALL COMMERCIAL VEHICLES IN ITALY PLUNGED 29 IN APRIL FROM A YEAR EARLIER ACCORDING TO FIGURES RELEASED WEDNESDAY BY ANFIA THE NATIONAL ASSOCIATION OF CAR MAKERS ANFIA SAID THAT IN THE FIRST FOUR MONTHS OF 1993 COMMERCIAL VEHICLE SALES WERE DOWN 28 FROM THE YEAREARLIER PERIOD COMMERCIAL VEHICLES ARE SMALL TRUCKS AND BUSES WITH A WEIGHT OF UP TO 35 METRIC TONS ANFIA SAID THAT A TOTAL OF 9567 COMMERCIAL VEHICLES WERE SOLD IN APRIL COMPARED WITH 13395 IN APRIL 1992 A TOTAL OF 40878 COMMERCIAL VEHICLES WERE SOLD IN THE FIRST FOUR MONTHS COMPARED WITH 56443 IN THE YEAREARLIER PERIOD 9305130130 930513 TECHNOLOGY NEOPROBE GETS FDA APPROVAL COLUMBUS OHIO NEOPROBE CORP SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO BEGIN FINAL PHASE TESTING ON A PIECE OF ITS RECURRENT COLORECTAL CANCER DETECTION SYSTEM NEOPROBE EXPECTS TO BE ABLE TO SUBMIT A PRODUCT LICENSE APPLICATION TO THE FDA NEXT YEAR THE TESTING COVERS THE RADIOLABELED ANTIBODY COMPONENT THAT ATTACHES TO THE CANCER SO DOCTORS CAN SPOT IT USING A GAMMARAY DETECTING PROBE 9305130129 930513 WHO'S NEWS KEMPER CORP KEMPER CORP LONG GROVE ILL CHARLES M KIERSCHT 54YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY'S KEMPER FINANCIAL COS AND KEMPER FINANCIAL SERVICES INC SUBSIDIARIES AND JOHN H FITZPATRICK 36 SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF KEMPER CORP WERE NAMED EXECUTIVE VICE PRESIDENTS OF THIS INSURANCE AND BROKERAGE CONCERN MR KIERSCHT CONTINUES IN HIS POSTS AT THE TWO UNITS AND MR FITZPATRICK CONTINUES AS CHIEF FINANCIAL OFFICER OF THE PARENT 9305130128 930513 FINANCING BUSINESS SEALY CORP SEALY CORP CLEVELAND SAID IT COMPLETED A REFINANCING THAT CUTS INTEREST EXPENSES AND EXTENDS MATURITIES ON SUBORDINATED DEBT AND BANK FINANCING THE REFINANCING INCLUDED SELLING 200 MILLION PRINCIPAL AMOUNT OF 95 SENIOR SUBORDINATED NOTES DUE 2003 IT ALSO INCLUDED A NEW CREDIT AGREEMENT WITH SENIOR LENDERS THAT PROVIDES FOR TWO TERMLOAN FACILITIES TOTALING 250 MILLION AND A 75 MILLION REVOLVING CREDIT FACILITY THE TERMLOAN FACILITIES WILL BE AMORTIZED UNTIL 2000 A PREVIOUS TERMLOAN AGREEMENT THAT TOTALED 277 MILLION WOULD HAVE BEEN AMORTIZED UNTIL 1998 THE BEDDING MANUFACTURER ALSO REDEEMED ITS 124 SENIOR SUBORDINATED NOTES DUE 2001 OF WHICH 140 MILLION WAS OUTSTANDING SEALY SAID IT IS HARD TO DETERMINE HOW MUCH ANNUAL INTEREST EXPENSES WILL FALL THIS YEAR BUT SAID IT WILL BE GREATER THAN THE 1 MILLION THE COMPANY WOULD HAVE CUT LAST YEAR ON A PRO FORMA BASIS SEALY HAD 427 MILLION IN ANNUAL INTEREST EXPENSES LAST YEAR 9305130127 930513 BLACK TOURISTS END BOYCOTT OF MIAMI AFTER 3 YEARS MIAMI A THREEYEAR BOYCOTT OF THE MIAMI AREA BY BLACK TOURISTS WAS ENDED AS COMMUNITY LEADERS UNVEILED A PROGRAM TO PROMOTE ECONOMIC DEVELOPMENT FOR BLACKS IN DADE COUNTY THE BOYCOTT WAS ORGANIZED BY HT SMITH A LOCAL BLACK COMMUNITY LEADER AFTER NELSON MANDELA SOUTH AFRICA'S ANTIAPARTHEID ACTIVIST RECEIVED A CHILLY RECEPTION BY LOCAL OFFICIALS WHEN HE VISITED IN 1990 LOCAL CUBANAMERICAN AND JEWISH PEOPLE OBJECTED TO MR MANDELA'S SUPPORT OF CUBAN PRESIDENT FIDEL CASTRO AND PALESTINE LIBERATION ORGANIZATION LEADER YASSER ARAFAT THE ECONOMIC DEVELOPMENT PROGRAM HAMMERED OUT BY COMMUNITY LEADERS INCLUDING AFRICANAMERICANS WHITES AND LATINS SETS SPECIFIC GOALS FOR BRIDGING THE VAST ECONOMIC GULF BETWEEN THE PREDOMINANTLY IMPOVERISHED BLACKS AND THE WHITE RESIDENTS OF DADE COUNTY THOSE GOALS INCLUDE A BLACKOWNED CONVENTIONQUALITY HOTEL PROGRAMS TO STIMULATE INCREASED PURCHASING FROM BLACKOWNED BUSINESSES AND SCHOLARSHIPS INTERNSHIPS AND WORKSTUDY PROGRAMS FOR BLACKS IN THE TOURISM INDUSTRY THE GREATER MIAMI CONVENTION AND VISITORS BUREAU SAID LAST YEAR THAT 25 CONVENTIONS WERE CANCELED OR LEADS LOST BECAUSE OF THE BOYCOTT RESULTING IN AN ESTIMATED LOSS OF 17 MILLION BUT IT SAID THE EFFECT ON THE AREA'S 425 MILLION A YEAR CONVENTION INDUSTRY WAS FAR GREATER BECAUSE OF THE NEGATIVE PERCEPTION THE BOYCOTT CREATED ABOUT MIAMI 9305130126 930513 INTERNATIONAL BUNDESBANK LOWERS REFINANCING RATE PAVING WAY FOR DISCOUNT LOMBARD CUTS BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THE GERMAN CENTRAL BANK PARED THE INTEREST RATE ON A CHIEF REFINANCING INSTRUMENT APPEARING TO SET THE STAGE FOR ANOTHER REDUCTION IN ITS KEY DISCOUNT AND LOMBARD RATES TO CHECK GERMANY'S SPREADING RECESSION EAGER TO EXPLOIT ANY OPENING FROM GERMANY THE DUTCH BELGIAN AND AUSTRIAN CENTRAL BANKS EACH LOWERED THEIR DISCOUNT RATES BY A QUARTER PERCENTAGE POINT TO 65 THREEQUARTER POINT BELOW GERMANY'S 725 DISCOUNT RATE EACH ALSO REDUCED AN ARRAY OF OPENMARKET INTEREST RATES THE DUTCH AND BELGIAN MOVES CAME AFTER THEIR CURRENCIES FIRMED AGAINST THE MARK IN THE EUROPEAN MONETARY SYSTEM WHERE THE MARK HAS BEEN PRESSURED BY A WORSENING ECONOMIC OUTLOOK EASTERN GERMAN STRIKES AND RUNAWAY FISCAL DEFICITS GERMANY'S BUNDESBANK SURPRISED MARKETS YESTERDAY BY ANNOUNCING THAT THE LOWESTACCEPTED BID ON ITS LATEST SECURITIES REPURCHASE AGREEMENTS WITH BANKS WAS DROPPED TO 76 FROM 771 A WEEK EARLIER ANALYSTS SAID THE DECLINE WAS DEEPER THAN EXPECTED PRESAGING ANOTHER SMALL REDUCTION IN THE CENTRAL BANK'S OFFICIAL DISCOUNT AND LOMBARD RATES AS EARLY AS WEDNESDAY THE NEXT SCHEDULED MEETING OF ITS POLICYSETTING CENTRAL BANK COUNCIL THE DISCOUNT RATE IS THE INTEREST THE BUNDESBANK CHARGES ON LOANS IT MAKES TO BANKS AND OTHER FINANCIAL INSTITUTIONS THE EQUALLY IMPORTANT LOMBARD RATE IS APPLIED TO SUPPLEMENTAL BORROWINGS FROM THE CENTRAL BANK THAT USE SECURITIES AS COLLATERAL BUNDESBANK CHIEF ECONOMIST OTMAR ISSING CAUTIONED AGAINST OVERINTERPRETING THE NEW RATE WHICH ALSO IS DETERMINED BY HOW BANKS BID FOR FUNDS IT IS A BIG STEP BUT ONE SHOULDN'T READ TOO MUCH INTO IT SAID MR ISSING A CONSERVATIVE MEMBER ON THE BUNDESBANK'S POLICY COUNCIL NONETHELESS HE SAID THE RECENT REDUCTIONS IN GERMAN INTEREST RATES ARE ADJUSTMENTS CONSISTENT WITH THE ECONOMY MR ISSING SAID FUTURE DECISIONS ON OFFICIAL RATES MUST TAKE OTHER FACTORS INTO ACCOUNT HE EXPLAINED THAT THE CENTRAL BANK REMAINED CONCERNED ABOUT THE STABILITY OF THE MARK AND THE EFFECT THAT RAPID CUTS IN SHORTTERM RATES COULD HAVE ON LONGERTERM CREDIT RATES IF INFLATION FEARS REIGNITED WE ARE CONCERNED THAT FAST INTERESTRATE REDUCTIONS COULD AWAKEN A LACK OF CONFIDENCE IN THE MARKETS HE SAID CONFIDENCE IS SOMETHING WE MUST MAINTAIN FINANCIAL MARKETS BELIEVE THAT THE BUNDESBANK'S CAUTION MIGHT LIMIT THE SIZE OF FUTURE CUTS BUT NOT THEIR FREQUENCY THE LATEST REPO MOVE WAS SEEN AS PART OF A GRADUAL BUT STEADY DECLINE IN GERMAN INTEREST RATES THE BUNDESBANK PAVED THE WAY FOR PREVIOUS DISCOUNT RATE REDUCTION BY FIRST STEERING DOWN MARKET RATES WITH ITS REPO FACILITY MAKING YESTERDAY'S REPO REDUCTION SOMETHING CLOSE TO A PREANNOUNCEMENT OF ANOTHER DISCOUNT CUT MANY ANALYSTS BELIEVE THE CAUTIOUS PROCESS COULD BRING GERMANY'S DISCOUNT RATE TO 55 TO 6 BY THE END OF 1993 THE DISCOUNT RATE WAS MOST RECENTLY CUT BY A QUARTER POINT TO 725 APRIL 22 THIS YEAR'S THIRD REDUCTION FROM 825 AT THE END OF 1992 RICHARD REID SENIOR ECONOMIST WITH UNION BANK OF SWITZERLAND IN FRANKFURT BELIEVES THE 55 LEVEL COULD BE REACHED BY OCTOBER IN A SEQUENCE OF THREE TO FIVE MORE STEPS WHAT WE ARE IN FOR IS EXACTLY THE PATTERN WE'VE BEEN GETTING A SERIES OF REPO CUTS FOLLOWED BY A SMALL CUT IN THE DISCOUNT OF A QUARTER OR A HALFPOINT SAID MR REID THEY CAN'T MOVE TOO QUICKLY BECAUSE OF POSSIBLE PERCEPTIONS THAT THEY'VE BUCKLED ON INFLATION THEY HAVE TO SHOW THAT THEY ARE STILL CONCERNED AND ARE ONLY RELUCTANTLY CUTTING RATES SOME GERMAN ECONOMISTS GRUMBLE THAT SPREADING OUT THE CUTS ONLY DELAYS THEIR EFFECT ON GERMANY'S RAPIDLY FALLING ECONOMY BUT THE BUNDESBANK'S QUANDARY IS THAT INDUSTRY AND CONSUMERS BORROW AT LONGTERM INTEREST RATES WHICH COULD RISE IF THE BANK IS PERCEIVED AS YIELDING TO DOMESTIC AND INTERNATIONAL PRESSURE AND DROPPING OFFICIAL RATES TOO QUICKLY LONGTERM YIELDS IN GERMANY'S BOND MARKET REACHED A LOW OF 647 IN MIDMARCH BUT BY YESTERDAY HAD RETURNED TO 673 AS GOVERNMENT BORROWING ROSE AND AS ANNUAL INFLATION HELD AT ABOVE 4 THE BUNDESBANK IS CLEARLY WORRIED THAT IF THEY CUT RATES TOO FAST THE BOND MARKETS WILL GET JITTERY SAID NIGEL RENDELL A MARKET ECONOMIST AT JAMES CAPEL & CO IN LONDON BUT THERE HAS BEEN A SEA CHANGE AT THE BUNDESBANK THEY'VE REALIZED THAT THE ECONOMY IS EXTREMELY WEAK AND THAT IF POLICIES WERE KEPT TIGHT THEY COULD SEE THE MOST SEVERE RECESSION IN 40 OR 50 YEARS 9305130125 930513 INTERNATIONAL ICI SETS RIGHTS PRICE OF ZENECA SHARES SPLIT WILL BE JUNE 1 SPECIAL TO THE WALL STREET JOURNAL LONDON BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC SET 600 PENCE 925 AS THE RIGHTS PRICE OF NEW SHARES THAT WILL BE ISSUED BY ITS PHARMACEUTICAL DIVISION ZENECA WHEN IT SPLITS FROM THE REST OF ICI JUNE 1 THE PRICE SET WAS ABOVE MARKET EXPECTATIONS OF 560 PENCE TO 570 PENCE A SHARE THE RIGHTS ISSUE TO ICI SHAREHOLDERS WILL BE ON THE BASIS OF FIVE NEW ZENECA SHARES FOR EVERY 16 ZENECA SHARES GIVEN OUT AFTER A 1FOR1 SPLIT OF ICI'S EQUITY CAPITAL THE OPERATION WILL RAISE 130 BILLION 2 BILLION AFTER EXPENSES UNCHANGED FROM THE COMPANY'S EARLIER FORECASTS AT 600 PENCE A SHARE THE ZENECA RIGHTS PRICE REPRESENTS A 13 DISCOUNT BASED ON ZENECA'S THEORETICAL PRICE ON THE LONDON STOCK EXCHANGE YESTERDAY ICI SHARES ROSE 125 PENCE TO 12845 1980 ICI ANNOUNCED IN FEBRUARY THAT IT WOULD SPLIT ITS OPERATIONS ZENECA WILL CARRY THE AGROSCIENCE OPERATIONS AND THE PHARMACEUTICAL BUSINESSES WHILE ICI WILL CONTINUE WITH THE OTHER ACTIVITIES SUCH AS COMMODITY CHEMICALS PAINTS AND MATERIALS ICI CALLED AN EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS FOR MAY 28 TO APPROVE THE SPLIT ICI SAID THE ZENECA SHARES CREATED WILL BEGIN TRADING ON THE LONDON STOCK EXCHANGE JUNE 1 ZENECA RIGHTS SHARES WILL BEGIN TRADING AT THE SAME TIME IN UNPAID FORM ICI IN A SUMMARY STATEMENT TO THE STOCK EXCHANGE EARLY WEDNESDAY DIDN'T GIVE AN EXACT TIMETABLE FOR THE RIGHTS ISSUE 9305130124 930513 MANAGEMENT IBM FASHIONS OPTIONS PLAN FOR MANAGERS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL IN AN AGGRESSIVE MOVE TO WIN HIS TOP MANAGERS' LOYALTY INTERNATIONAL BUSINESS MACHINES CORP'S NEW CHAIRMAN LOUIS V GERSTNER JR IS OFFERING THEM A WAY TO MAKE MONEY FROM THEIR WORTHLESS STOCK OPTIONS COMPENSATION EXPERTS CALLED THE IBM PLAN AN EXTREMELY UNUSUAL APPROACH TO A MAJOR OBSTACLE IN TURNING AROUND AILING CORPORATIONS MR GERSTNER NEEDS TO RAISE MORALE AND KEEP MANAGERS FROM ABANDONING IBM BUT WITH CRITICISM OF EXECUTIVE PAY AT A FEVER PITCH HE CAN'T AFFORD ANY MOVE THAT WOULD SEEM UNFAIR TO OUTSIDE SHAREHOLDERS WHO HAVE SEEN THEIR IBM STOCK PLUNGE BY MORE THAN HALF IN THE LAST YEAR ALONE UNDER MR GERSTNER'S NEW PLAN IBM WILL LET EMPLOYEES SWAP OLD OPTIONS SOME SET AT PRICES AS HIGH AS 160 A SHARE FOR NEW ONES EXERCISABLE AT ONLY 4788 A SHARE BUT EMPLOYEES WILL HAVE TO SWAP ON AVERAGE 25 OLD OPTIONS TO RECEIVE EACH NEW ONE MOREOVER THE NEW OPTIONS WON'T BE EXERCISABLE UNLESS IBM'S STOCK RISES 50 FROM THE 4788 PRICE AND STAYS THERE FOR AT LEAST 30 CONSECUTIVE DAYS AND EMPLOYEES WILL HAVE TO STAY AT IBM TWO YEARS TO EXERCISE HALF THE OPTIONS WITH THE OTHER HALF BECOMING AVAILABLE OVER THE SUCCEEDING TWO YEARS IBM'S STOCK HAS BEEN STALLED IN THE HIGH 40S CLOSING YESTERDAY AT 48 DOWN 875 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE AILING ARMONK NY COMPUTER COMPANY SAID THE OFFER WILL APPLY TO 1200 OPTION HOLDERS BUT NOT THE COMPANY'S TOP TWO DOZEN EXECUTIVES SEVERAL COMPANIES HAVE DRAWN FIRE FOR REPRICING THEIR OPTIONS AFTER THEIR STOCK PLUMMETED A MOVE THAT LARGELY ELIMINATES THE OPTIONS' VALUE AS AN INCENTIVE BUT A LEADING SHAREHOLDER ACTIVIST YESTERDAY PRAISED THE NEW IBM PLAN IT'S A WAY OF INVIGORATING MORALE WITH THE PEOPLE YOU'RE ABSOLUTELY GOING TO HAVE TO HAVE BEHIND YOU TO DO THE TURNAROUND HE'S PLANNING SAID RALPH WHITWORTH PRESIDENT OF THE UNITED SHAREHOLDERS ASSOCIATION HE SAID EXEMPTING THE TOP EXECUTIVES WHO WERE MOST RESPONSIBLE FOR IBM'S FAILED STRATEGY WAS A CRUCIAL FEATURE THAT MADE THE PLAN PALATABLE TO SHAREHOLDERS DAVID SWINFORD A COMPENSATION CONSULTANT AT WILLIAM M MERCER INC CALLED THE IBM PLAN VERY UNUSUAL HE SAID IT HAS BELLS AND WHISTLES THAT DO GIVE SOMETHING TO A SHAREHOLDER IN EXCHANGE FOR REDUCING AN EXECUTIVE'S RISK BUT HE ADDED EXECUTIVES AREN'T BEING TOTALLY FORGIVEN BECAUSE THEY HAVE A SUBSTANTIALLY REDUCED NUMBER OF OPTIONS MR SWINFORD SAID HE WAS WORKING ON A SIMILAR OPTIONS PLAN FOR A SMALLER COMPANY AND PREDICTED THAT THE STRATEGY COULD SPREAD WIDELY TO OTHER TURNAROUND TARGETS IT'S A VERY APPEALING WAY OF DEALING WITH A WHOLE GROUP OF MANAGEMENT PEOPLE WHO ARE SITTING THERE SAYING YOU WANT ME ON THIS TEAM BUT I'M STILL FEELING WORKED OVER FROM THE PAST' HE SAID IBM SAID ITS BOARD APPROVED THE OPTIONS PLAN AT AN APRIL 26 MEETING AT MR GERSTNER'S REQUEST MR GERSTNER FIRST PUBLICLY DISCUSSED THE PLAN IN AN INTERVIEW WITH FORTUNE MAGAZINE TO BE PUBLISHED NEXT WEEK THE 4788 EXERCISE PRICE REPRESENTED THE AVERAGE TRADING PRICE ON APRIL 23 THE DATE MR GERSTNER'S OWN PACKAGE OF 500000 OPTIONS WAS GRANTED MR GERSTNER DESCRIBED THE PLAN TO IBM MANAGERS IN AN APRIL 28 LETTER I'M WELL AWARE THAT YOU AND THE REST OF OUR OUTSTANDING MANAGEMENT TEAM HAVE LOST SIGNIFICANT VALUE IN YOUR STOCK OPTIONS THAT MEAN SO MUCH TO YOUR FUTURE HE WROTE IT IS VERY IMPORTANT TO ME AND TO OUR COMPANY TO RETAIN AND MOTIVATE ALL OUR KEY PEOPLE DURING THIS DIFFICULT TIME OF TRANSITION SINCE HE TOOK THE TOP JOB AT IBM APRIL 1 MR GERSTNER HAS BEEN HEAVILY FOCUSED ON IBM'S STAFF AND STRUCTURE HE QUICKLY BROUGHT IN NEW EXECUTIVES TO RUN FINANCE PERSONNEL COMMUNICATIONS AND A DISKDRIVE DIVISION SO FAR HE HASN'T MADE BOLD MOVES TO ADDRESS IBM'S BASIC BUSINESS WHICH IS STILL FEELING THE EFFECTS OF THE COLLAPSE OF THE MAINFRAME COMPUTER MARKET 9305130123 930513 POLITICS & POLICY PRESIDENT CLINTON RESURRECTS CANDIDATE CLINTON AND HIS PROPOSALS FOR A NEW DEMOCRAT' AGENDA BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN PRESIDENT CLINTON SUMMONED TOP ADVISERS A COUPLE OF WEEKS AGO FOR A WHITE HOUSE SKULL SESSION ON HOW TO REGAIN POLITICAL MOMENTUM HE CARRIED INTO THE MEETING A SPECIAL SHEET OF PAPER THE PAPER CONTAINED A LIST OF THE NEW DEMOCRAT IDEAS SUCH AS WELFARE REFORM AND PUTTING MORE COPS ON THE BEAT THAT CANDIDATE CLINTON SUCCESSFULLY ESPOUSED LAST YEAR TO PORTRAY HIMSELF AS A DIFFERENT HARDHEADED BRAND OF DEMOCRAT LIST IN HAND MR CLINTON POSED A QUESTION WHAT HAS HAPPENED TO THESE IDEAS IT'S A QUESTION SOME OTHER CLINTONITES HAVE BEEN ASKING AND THE ANSWER IS FINALLY EMERGING AS IT STRUGGLES TO PULL OUT OF EARLY POLITICAL TURBULENCE THE CLINTON ADMINISTRATION IS INCREASINGLY TURNING BACK TO THE NEW DEMOCRAT IDEAS OF CANDIDATE CLINTON LEGISLATIVE PROPOSALS TO FASHION THESE IDEAS INTO REALITY ARE RAPIDLY BUBBLING TO THE SURFACE AND MORE WILL POP UP OVER THE NEXT FEW MONTHS IN JUST THE PAST TWO WEEKS MR CLINTON HAS UNVEILED HIS PROPOSAL FOR A NATIONAL SERVICE PROGRAM IN WHICH STUDENTS EARN FUNDS FOR COLLEGE BY DOING COMMUNITY SERVICE A PLAN TO ESTABLISH EMPOWERMENT ZONES TO SPUR INNERCITY INVESTMENTS AND A PROPOSAL TO OVERHAUL CAMPAIGN FINANCE RULES A NEW TASK FORCE HAS BEGUN MEETING TO DRAFT WELFAREREFORM LEGISLATION WHICH WILL ATTEMPT TO LIMIT THE TIME WELFARE RECIPIENTS STAY ON THE ROLLS TO TWO YEARS BY PROVIDING JOB TRAINING WORK IS STEPPING UP ON A CRIME BILL TO FULFILL MR CLINTON'S PROMISE TO PUT 100000 NEW POLICE OFFICERS ON THE STREET AND ENCOURAGE COMMUNITYBASED POLICING IN WHICH MORE COPS WALK URBAN BEATS SUCH PROPOSALS STRUCK A CHORD IN THE CAMPAIGN FOR THEY BUTTRESSED MR CLINTON'S CLAIMS THAT HE IS A DEMOCRAT WHO STRESSES THAT PEOPLE NEED TO TAKE RESPONSIBILITY FOR THEMSELVES NOT RELY ON GOVERNMENT HANDOUTS YET IN THE OPENING WEEKS OF THE ADMINISTRATION SUCH IDEAS WERE DROWNED OUT BY MR CLINTON'S BUDGET TAX AND HEALTH PLANS AS WELL AS HIS DECIDEDLY NONNEW DEMOCRAT INITIATIVES TO LIFT THE BAN ON GAYS IN THE MILITARY AND ENFORCE ETHNIC AND GENDER DIVERSITY IN HIS ADMINISTRATION AS A RESULT MANY OBSERVERS WERE LEFT WONDERING WHETHER MR CLINTON REALLY WAS A NEW DEMOCRAT OR MERELY AN OLDFASHIONED LIBERAL WHO HAD DRESSED UP HIS IMAGE WITH SOME NEWWAVE CAMPAIGN SPEECHES THE DELAY ALSO RAISED QUESTIONS ABOUT WHETHER PRESIDENT CLINTON WAS WILLING TO TAKE ON SOME OLDLINE LIBERAL CONSTITUENCIES WITHIN THE DEMOCRATIC PARTY WHO FOR EXAMPLE RESIST THE IDEA OF FORCING WELFARE RECIPIENTS OUT OF THE SYSTEM OR WORRY THAT NATIONALSERVICE JOBS WILL SUPPLANT UNION WORKERS CLINTON ALLIES ACKNOWLEDGE THAT THERE MIGHT HAVE BEEN POLITICAL ADVANTAGES TO PUSHING THE NEW DEMOCRAT IDEAS EARLIER THOUGH THEY INSIST ANY DAMAGE WILL BE SHORTLIVED THEY PROBABLY PAID SOME PRICE IN THE SHORT TERM BUT NOT MUCH IN THE LONG TERM SAYS AL FROM PRESIDENT OF THE DEMOCRATIC LEADERSHIP COUNCIL THE ORGANIZATION OF MODERATE TO CONSERVATIVE DEMOCRATS THAT HAS CHAMPIONED MOST OF THE NEW DEMOCRAT AGENDA IN THE LONG RUN HE ASSERTS THE SIGNATURE IDEAS OF THE CLINTON ADMINISTRATION IN ADDITION TO HEALTH CARE WILL BE WELFARE REFORM NATIONAL SERVICE YOUTH APPRENTICESHIP AND REINVENTING GOVERNMENT THE NEW DEMOCRAT AGENDA WHITE HOUSE AIDES INSIST THAT NEW DEMOCRAT PROPOSALS ARE BECOMING MORE VISIBLE NOW SIMPLY BECAUSE THEY ARE IDEAS THAT ARE BIG AND COMPLEX AND ARE TAKING TIME TO TURN INTO FULLBLOWN PROGRAMS I THINK IT'S A FUNCTION OF TIMING SAYS A SENIOR CLINTON AIDE AS SOON AS WE'VE GOTTEN THEM DONE WE'VE GONE WITH THEM THE DIFFICULTY OF TURNING A NEW DEMOCRAT AGENDA INTO REALITY IS PERHAPS BEST ILLUSTRATED BY WELFARE REFORM WHICH PROVED DURING THE CAMPAIGN TO BE THE MOST POLITICALLY APPEALING OF THE NEW IDEAS WHEN MR CLINTON'S PROMISE TO END WELFARE AS WE KNOW IT AND HIS PLAN TO PUT A TWOYEAR LIMIT ON WELFARE DEPENDENCY WERE TRANSLATED INTO A TELEVISION COMMERCIAL CLINTON ADVISERS SAW AN INSTANT REACTION IN HIS POLL STANDINGS RECALLS CELINDA LAKE A DEMOCRATIC POLLSTER WHO WORKED ON THE CAMPAIGN WHEN WE PUT THE ADS ON IT HELPED ENORMOUSLY FOR THAT REASON SOME CLINTON POLITICAL ADVISERS WANTED TO PUSH AHEAD RAPIDLY WITH A WELFAREREFORM PLAN AFTER THE INAUGURATION YET REFORMING THE VAST WELFARE SYSTEM IS ALSO ONE OF THE MOST COMPLEX AND POTENTIALLY CONTROVERSIAL PROPOSALS ON THE CLINTON AGENDA MR CLINTON'S GENERAL IDEA IS TO PROVIDE WELFARE RECIPIENTS WITH THE EDUCATION TRAINING AND CHILD CARE THEY NEED TO GET JOB SKILLS AND THEN REQUIRE THOSE WHO ARE ABLE TO WORK TO TAKE A JOB AFTER TWO YEARS AT THE SAME TIME THE ADMINISTRATION WOULD IMPOSE A SYSTEM TO CRACK DOWN ON DEADBEAT DADS WHO FAIL TO MAKE CHILDSUPPORT PAYMENTS AND THEREBY HELP KEEP WOMEN ON WELFARE ROLLS BUT THE COMPLEX LEGISLATION TO CHANGE WELFARE HAS TO BE HANDLED BY THE SAME CONGRESSIONAL COMMITTEES THAT ARE ABOUT TO BE OVERWHELMED WITH THE MASSIVE CLINTON HEALTH PLAN MOREOVER BECAUSE MOST WELFARE RECIPIENTS ALSO GET THEIR HEALTH CARE THROUGH THE MEDICAID PROGRAM FOR THE POOR IT'S DIFFICULT TO CHANGE WELFARE RULES UNTIL AFTER DECISIONS ARE MADE ON HEALTHCARE REFORM IN ADDITION SOME REFORM ADVOCATES ALSO SUSPECT THERE WILL BE INTERNAL RESISTANCE WITHIN THE CLINTON TEAM SEN PATRICK MOYNIHAN THE NEW YORK DEMOCRAT WHO HEADS THE SENATE FINANCE COMMITTEE HAS QUESTIONED WHETHER HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA FULLY BACKS WELFARE REFORM AND THOUGH IT MIGHT SAVE MONEY IN THE LONG RUN WELFARE REFORM COSTS MONEY IN THE SHORT TERM TO GET JOBTRAINING PROGRAMS UP AND RUNNING SO THOUGH MR CLINTON GAVE A SPEECH IN JANUARY REASSERTING HIS DESIRE FOR WELFARE REFORM A PLAN IS ONLY STARTING TO TAKE SHAPE A TASK FORCE OF ABOUT 20 ADMINISTRATION OFFICIALS HAS BEGUN MEETING TO DRAFT LEGISLATION AND A FEW TASK FORCE MEMBERS SAT DOWN RECENTLY WITH SEN MOYNIHAN TO BEGIN CONSULTATIONS WHITE HOUSE AIDES SAY THEIR GOAL IS TO GET A COMPREHENSIVE BILL BEFORE CONGRESS LATER THIS YEAR MEANWHILE OTHER NEW DEMOCRAT IDEAS WILL CONTINUE PERCOLATING FOR INSTANCE SOME CLINTON ADVISERS ARE PUSHING THE NOTION OF A CAREER OPPORTUNITY CARD WHICH WOULD BE A VOUCHER ENTITLING A WORKER WHO IS LAID OFF TO PURCHASE A CERTAIN AMOUNT OF EDUCATION OR JOB TRAINING BUT SOME SAY THAT PUSHING SUCH NEW IDEAS AHEAD IS ONLY HALF THE TEST OF WHETHER MR CLINTON REALLY IS A DIFFERENT KIND OF DEMOCRAT THE OTHER PART IS GETTING AWAY FROM SOME OF THE TIRED FADS AND IDEAS OF THE LIBERALISM OF THE '70S AND '80S THAT PROVED UNPOPULAR WITH THE VOTERS SAYS JOSHUA MURAVCHIK A CONSERVATIVE CLINTON SUPPORTER AT THE AMERICAN ENTERPRISE INSTITUTE CITING MR CLINTON'S HIRING OF CONTROVERSIAL LIBERAL LAW PROFESSOR LANI GUINIER TO HEAD THE JUSTICE DEPARTMENT'S CIVIL RIGHTS DIVISION AND THE STRAINS IN THE PRESIDENT'S RELATIONS WITH THE MILITARY MR MURAVCHIK DECLARES A LOT OF NEWS ON THAT FRONT IS STILL DISAPPOINTING WELFARE REFORM EMPOWER PEOPLE WITH THE EDUCATION TRAINING AND CHILD CARE THEY NEED FOR UP TO TWO YEARS AFTER TWO YEARS REQUIRE THOSE WHO CAN WORK TO GO TO WORK NATIONAL SERVICE ESTABLISH A NATIONAL SERVICE TRUST FUND TO GUARANTEE EVERY AMERICAN WHO WANTS A COLLEGE EDUCATION THE MEANS TO OBTAIN ONE THOSE WHO BORROW FROM THE FUND CAN REPAY THROUGH COMMUNITY SERVICE AS TEACHERS LAW ENFORCEMENT OFFICERS HEALTHCARE WORKERS OR PEER COUNSELORS HELPING KIDS STAY OFF DRUGS AND IN SCHOOL CRIME FIGHT CRIME BY PUTTING 100000 NEW POLICE OFFICERS ON THE STREETS AND BY TAKING OFFICERS OUT OF PATROL CARS AND PUTTING INCREASING NUMBERS BACK ON THE BEAT APPRENTICESHIP CREATE A NATIONAL APPRENTICESHIPSTYLE PROGRAM BY BRINGING BUSINESS LABOR AND EDUCATION LEADERS TOGETHER TO OFFER NONCOLLEGEBOUND STUDENTS VALUABLE SKILLS 9305130122 930513 KODAK HOLDERS SEND A WARNING TO DIRECTORS PROPOSAL FOR YEARLY ELECTION RECEIVES 42 OF VOTE BOARD SLATE IS APPROVED BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL FORT LAUDERDALE FLA EASTMAN KODAK CO SHAREHOLDERS APPROVED MANAGEMENT'S SLATE OF DIRECTORS BUT IN A SEPARATE VOTE SENT THE BOARD A WARNING BY NEARLY APPROVING A PROPOSAL TO BRING THE ENTIRE BOARD UP FOR ELECTION EACH YEAR DURING A NEWS CONFERENCE AFTER THE ANNUAL MEETING HERE CHAIRMAN KAY R WHITMORE SAID HE WAS IMPRESSED BY THE 42 VOTE AGAINST KODAK'S STAGGERED BOARD SYSTEM WHICH WAS MUCH HIGHER THAN EXPECTED THAT'S A MESSAGE HE SAID THE BOARD OF DIRECTORS HAS GOT TO LOOK AT THAT THE BOARD'S OTHER 12 MEMBERS SLIPPED AWAY AFTER THE MEETING AND WEREN'T AVAILABLE FOR COMMENT MR WHITMORE ACKNOWLEDGED THAT HIS JOB IS ON THE LINE TELLING SHAREHOLDERS AT THE MEETING THAT HIS MANAGEMENT TEAM CAN TURN AROUND THE ROCHESTER NY PHOTOGRAPHY COMPANY BETTER MORE COMPLETELY AND WITH BETTER LONGTERM OUTCOME THAN ANYONE ELSE THE CHAIRMAN HAS ENDURED INTENSE CRITICISM SINCE APRIL 28 WHEN HE ANNOUNCED THAT HIS HIGHLY LAUDED CHIEF FINANCIAL OFFICER CHRISTOPHER J STEFFEN HAD QUIT THE NIGHT BEFORE AFTER ONLY 11 WEEKS ON THE JOB KODAK'S STOCK HAD SOARED ON MR STEFFEN'S PROMISES FOR AN AGGRESSIVE TURNAROUND PLAN FOR THE STODGY INDUSTRIAL COMPANY BUT PLUNGED ON HIS DEPARTURE THE STOCK HAS RECOVERED SINCE THEN PARTLY BECAUSE THE USUALLY LOWPROFILE MR WHITMORE HAS BEEN MEETING WITH INVESTORS TO REASSURE THEM THAT HE CAN DELIVER THE TURNAROUND PLAN BY SEPTEMBER IN LIGHT TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY KODAK SHARES CLOSED AT 53 UP 1625 MR WHITMORE DECLINED TO ELABORATE ON THE TURNAROUND PLAN BUT HE PROMISED THAT WHEN IT IS IMPLEMENTED KODAK WILL BE LESS LARGE AND LESS COMPLEX ANALYSTS HOPE HE WILL SELL OR SPIN OFF AN ENTIRE BUSINESS UNIT SUCH AS COPIERS OR CHEMICALS KODAK'S CHAIRMAN ALSO PROMISED THAT THE COMPANY WILL DELIVER SOLID GAINS IN 1993 EARNINGS AND RECORD EARNINGS IN 1994 IN 1992 KODAK EARNED 115 BILLION OR 353 A PRIMARY SHARE IN 1988 ITS PEAK IT EARNED 140 BILLION OR 431 A SHARE ON MATTERS OF CORPORATE GOVERNANCE MR WHITMORE SAID THE BOARD FORMED A NEW FINANCE COMMITTEE OF FOUR OUTSIDE DIRECTORS TO HELP MAKE KEY FINANCIAL DECISIONS THE BOARD NOW HAS NINE OUTSIDE MEMBERS ALSO THE BOARD'S NEW CORPORATE DIRECTIONS COMMITTEE WILL BEGIN MEETING WITH INVESTORS AND RETIRED KODAK CHAIRMEN WILL NO LONGER BE ALLOWED TO SERVE ON THE BOARD MR WHITMORE SEEMED IRKED AT THE IDEA THAT ANGRY SHAREHOLDERS HAD MOTIVATED HIM TO TURN AROUND THE COMPANY HE REPEATEDLY TOLD REPORTERS HE IS PERSONALLY MOTIVATED WHEN ASKED WHY IN THAT CASE HE HAS TAKEN SO LONG TO START TURNING AROUND THE COMPANY MR WHITMORE SAID WE'RE IN THE MIDDLE OF A MAJOR TECHNOLOGICAL TRANSFORMATION FROM TRADITIONAL PHOTOGRAPHY TO ELECTRONIC IMAGING METHODS HE GOT SOME SUPPORT FROM SHAREHOLDER ACTIVIST ROBERT MONKS MR MONKS WHO HAS OPENLY CRITICIZED MR WHITMORE FOR MOVING TOO SLOWLY PRAISED THE CHAIRMAN DURING THE ANNUAL MEETING FOR BEING A MODEL IN TERMS OF SENSITIVITY TO SHAREHOLDERS IN RECENT MONTHS BUT FRUSTRATION REMAINS HIGH ONE ANGRY SHAREHOLDER JOHN T RAGUSA OF TEXAS COMPLAINED ABOUT POOR EARNINGS AND HIGH COSTS AND THEN SAID THE PEOPLE DIRECTLY RESPONSIBLE FOR THIS MESS ARE SITTING RIGHT IN FRONT INDICATING THE DIRECTORS WHEN MR WHITMORE URGED MR RAGUSA TO WRAP UP HIS LENGTHY COMMENTS THE TEXAN REPLIED I WOULD REMIND YOU THAT YOU ARE AN EMPLOYEE HERE PROMPTING SCATTERED APPLAUSE SEPARATELY MR WHITMORE SAID HE HAS INTERVIEWED FOUR POTENTIAL SUCCESSORS TO MR STEFFEN INCLUDING THREE THIS WEEK AND THAT SO FAR TWO ARE STRONG CANDIDATES MR WHITMORE SAID HE ISN'T ANGRY AT MR STEFFEN FOR QUITTING ON THE EVE OF THE ANNUAL MEETING CHRIS STEFFEN IS A FIRST CLASS PERSON I HOPE SOMEBODY MAKES HIM CHIEF EXECUTIVE OFFICER OF SOMETHING BECAUSE HE REALLY KNOWS HOW TO TURN THINGS AROUND MR STEFFEN REMAINS UNAVAILABLE FOR COMMENT 9305130121 930513 WOODWARD'S CREDITORS CLEAR PLAN VANCOUVER BRITISH COLUMBIA GENERAL CREDITORS OF WOODWARD'S LTD APPROVED A PLAN UNDER WHICH THE RETAILER WILL BE MERGED WITH A SUBSIDIARY OF TORONTOBASED HUDSON'S BAY CO SHAREHOLDERS AND ALL OTHER CLASSES OF CREDITORS APPROVED THE PLAN LAST WEEK WOODWARD'S HAS BEEN OPERATING SINCE DECEMBER UNDER PROTECTION OF A LAW SIMILAR TO CHAPTER 15 OF THE US BANKRUPTCY CODE 9305130120 930513 CABOT OIL & GAS ACQUISITION HOUSTON CABOT OIL & GAS CORP SAID IT COMPLETED ITS ACQUISITION OF CERTAIN OIL AND GAS PROPERTIES FOR 36 MILLION OF CONVERTIBLE PREFERRED STOCK THE PROPERTIES LOCATED IN THE ANADARKO BASIN OF OKLAHOMA AND KANSAS AND IN THE EAST TEXAS BASIN WERE PURCHASED FROM A PRIVATE EDUCATIONAL INSTITUTION THE ACQUISITION CONTAINS PROVED RESERVES OF ABOUT 50 BILLION CUBIC FEET EQUIVALENT OF NATURAL GAS 9305130119 930513 FINANCING BUSINESS LIBERTY NATIONAL BANCORP LIBERTY NATIONAL BANCORP LOUISVILLE KY SAID ITS PRINCIPAL UNIT LIBERTY NATIONAL BANK & TRUST CO OF LOUISVILLE WILL SELL 55 MILLION OF ITS 675 SUBORDINATED NOTES DUE 2003 THE NOTES WILL HAVE A YIELDTOMATURITY RATE OF 6772 THE BANK HOLDING COMPANY SAID IT SAID THE NOTES WILL BE SOLD IN MINIMUM AMOUNTS OF 150000 TO INSTITUTIONS THAT ARE ACCREDITED INVESTORS 9305130118 930513 CORPORATE FOCUS GM STARTS TO SHIP CONTROL SYSTEMS TO VOLGA AUTO WORKS RUSSIAN DEAL IS BIG STEP IN TRANSFORMATION OF AUTO MAKER'S PARTS OPERATIONS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL PONTIAC MICH ONE OF THE LARGEST MANUFACTURING DEALS EVER BETWEEN A US AND RUSSIAN COMPANY WILL BEGIN PAYING OFF TODAY AS GENERAL MOTORS CORP STARTS SHIPPING THE FIRST OF 700 MILLION OF ENGINECONTROL SYSTEMS TO RUSSIA'S VOLGA AUTO WORKS THE FIVEYEAR DEAL IS A BIG STEP FORWARD BOTH FOR RUSSIA AND FOR GM'S 24 BILLIONAUTOPARTS OPERATIONS A COLLECTION OF SEVEN DIVISIONS RECENTLY RECHRISTENED THE AUTOMOTIVE COMPONENTS GROUP WORLDWIDE UNDER PRESSURE TO BOOST PROFITS GM'S PARTS OPERATIONS ARE SCRAMBLING TO FUNCTION MORE LIKE A BIG COMPANY THAT SELLS SOPHISTICATED TECHNOLOGICAL SYSTEMS THAN A HELTERSKELTER GROUP OF FACTORIES SHIPPING SPARK PLUGS STARTERS AND FUEL INJECTORS TO A SINGLE CUSTOMER NAMELY GM FOR RUSSIA THE GM ENGINE AND EMISSION CONTROLS ARE CRITICAL TO VOLGA AUTO WORKS' EFFORTS TO BOOST SALES OF ITS LADA CARS IN THE WEST AND MAINTAIN A FLOW OF MUCHNEEDED HARD CURRENCY IT'S THE KIND OF INITIATIVE THE CLINTON ADMINISTRATION IS PUSHING TO BOLSTER RUSSIAN PRESIDENT BORIS YELTSIN'S ECONOMIC REFORMS VOLGA AUTO WORKS OR VAZ EXPECTS TO SELL ABOUT 200000 LADA VEHICLES A YEAR IN EUROPE CANADA AND OTHER WESTERN MARKETS SAID YURI PASHIN VAZ'S DEPUTY MANAGER OF ENGINEERING DURING A NEWS CONFERENCE HERE BUT THAT HINGES ON USING GM'S TECHNOLOGY TO MEET NEW CLEAN AIR STANDARDS IN THOSE MARKETS FOR GM'S AUTOMOTIVE COMPONENTS GROUP MEANWHILE THE VAZ DEAL IS A SHOWCASE FOR WHAT IT WANTS TO DO FOR AUTO MAKERS IN JAPAN EUROPE AND EVEN CHINA IN CHINA A VENTURE TO SUPPLY GM EMISSIONSCONTROL SYSTEMS IS CURRENTLY AWAITING FINAL APPROVAL FROM BOTH PARTIES WE'VE CHANGED OUR VISION SAID JT BATTENBERG III THE GROUP VICE PRESIDENT IN CHARGE OF GM'S PARTS OPERATIONS EARLIER THIS MONTH WE WANT 50 OF OUR SALES TO COME FROM OUTSIDE GM'S NORTH AMERICAN ASSEMBLY OPERATIONS INSTEAD OF THE CURRENT 23 IN ESSENCE GM'S PARTS DIVISIONS FACE A CHALLENGE SIMILAR TO THAT FACED BY MANY NEWLY PRIVATIZED RUSSIAN MANUFACTURERS MAKING THEIR PRODUCTS AND MARKETING MORE COMPETITIVE TO CUSTOMERS OUTSIDE GM TO THAT END THE VAZ DEAL IS IMPORTANT AT AN AVERAGE OF 140 MILLION EACH YEAR THE DEAL IS WORTH MORE THAN GM'S CURRENT 90 MILLION OF ANNUAL PARTS SHIPMENTS TO JAPAN WE DON'T SELL PARTS SAID JAN TANNEHILL GENERAL MANAGER OF GM'S AC ROCHESTER DIVISION ILLUSTRATING AC ROCHESTER'S NEW EMPHASIS ON INTEGRATED SYSTEMS INSTEAD OF SEPARATE PARTS WE SELL CLEAN AIR HE SAID MR TANNEHILL SAID THE THREE YEARS OF WORK THAT THE AUTOMOTIVE COMPONENT GROUP PUT INTO THE VAZ DEAL WILL HELP AS IT SETS OUT TO SEEK MORE OUTSIDE CONTRACTS FOR EXAMPLE TO DEAL WITH VAZ FOUR GM PARTS DIVISIONS AGREED TO MAKE AC ROCHESTER THE LEAD DIVISION FOR ENGINEERING AND BILLING PURPOSES VAZ WILL MAKE ITS HARD CURRENCY PAYMENTS TO AC ROCHESTER IN THE FUTURE GM PLANS TO BEGIN PRESENTING ITS PARTS DIVISIONS TO OTHER OUTSIDE CUSTOMERS AS THE AUTOMOTIVE COMPONENTS GROUP WORLDWIDE INSTEAD OF AS DELCO REMY THE BATTERY DIVISION OR AS PACKARD ELECTRIC THE WIRING DIVISION GM HAS CREATED A NEW LOGO FOR THE AUTOMOTIVE COMPONENTS GROUP WORLDWIDE WHICH FEATURES AN ABSTRACT IMAGE OF THE GLOBE WE WANT MORE PEOPLE TO THINK OF US LIKE A BOSCH OR A SIEMENS SAID MR TANNEHILL A LEADER IN THE GROUP'S OVERALL EFFORTS TO IMPROVE MARKETING MEANWHILE MR BATTENBERG SAID IN AN INTERVIEW EARLIER THIS MONTH THAT HE'S PUSHING TO CUT COSTS ANOTHER 15 BILLION BETWEEN NOW AND 1994 ON TOP OF 25 BILLION IN COST REDUCTIONS ACHIEVED SINCE 1991 MR BATTENBERG ALSO IS IN THE PROCESS OF SELLING OR CLOSING PLANTS THAT IN RECENT YEARS REPRESENTED ONLY ABOUT 14 OF THE PARTS GROUP'S TOTAL REVENUES BUT VIRTUALLY ALL OF ITS LOSSES WE'RE NOT ACCEPTING ANY EXCUSES FOR MISSING COST AND PROFIT TARGETS MR BATTENBERG SAID ECHOING A THEME STRUCK BY GM PRESIDENT JOHN F SMITH JR IN MANAGEMENT MEETINGS EARLIER THIS YEAR GM'S PARTS OPERATIONS ARE BACK IN THE BLACK MR BATTENBERG SAID BUT FOR LONGTERM GROWTH HE'S FOCUSING ON OVERSEAS MARKETS JAPAN IS A MAJOR TARGET BUT THE GOING IS SLOW GM RECENTLY WON A CONTRACT TO SELL STEERING COLUMNS TO TOYOTA MOTOR CORP'S CAR FACTORY IN GEORGETOWN KY BUT IN JAPAN MR BATTENBERG SAID THERE'S SOME HESITANCY TO BUY MORE US PARTS AND LAY MORE PEOPLE OFF EUROPE IS MORE PROMISING MR BATTENBERG PREDICTS DEMAND FOR SUCH TECHNOLOGIES AS POWER STEERING AND AIR CONDITIONING WILL DOUBLE OR TRIPLE FROM CURRENT LEVELS DURING THE NEXT DECADE IN EUROPE AND THEN THERE ARE EMERGING MARKETS SUCH AS CHINA AND RUSSIA WHERE GM HOPES TO GET IN ON THE GROUND FLOOR AC ROCHESTER EXECUTIVES ACKNOWLEDGED YESTERDAY THAT THEIR EFFORTS TO CRACK THE RUSSIAN MARKET DIDN'T ALWAYS GO SMOOTHLY THE INITIAL AGREEMENT BETWEEN GM AND VAZ WAS ANNOUNCED WITH MUCH FANFARE IN JUNE 1990 BUT THE BREAKUP OF THE SOVIET UNION AND THE SUBSEQUENT POLITICAL AND ECONOMIC TURMOIL IN RUSSIA CAST DOUBT ON THE DEAL THEY HAD TO FIGHT EVERY INCH OF THE WAY FOR CAPITAL MR TANNEHILL SAID TO PROTECT ITSELF FROM THE GYRATIONS OF THE RUBLE GM STRUCTURED THE VAZ CONTRACT SO THAT IT WILL GET PAID IN DOLLARS GENERATED WHEN VAZ SELLS CARS FOR HARD CURRENCY IN EXPORT MARKETS MEANWHILE GM EXECUTIVES SENT TO VAZ'S SPRAWLING PLANT IN TOLIATTI 600 MILES SOUTHEAST OF MOSCOW FOUND THEMSELVES ISOLATED PLACING PHONE CALLS TOOK DAYS COST ACCOUNTING WAS A MYSTERY AND LOGISTICS WERE A NIGHTMARE SAID RICK MERRILL AC ROCHESTER'S SALES MANAGER FOR RUSSIA AFTER 20 YEARS WITH GM I THOUGHT I WAS USED TO DECISION PROCESSES THAT DRAGGED ON FOREVER MR MERRILL SAID THE RUSSIANS WROTE THE BOOK DESPITE THE EARLY FRUSTRATIONS VAZ'S MR PASHIN SAID HIS COMPANY IS SO PLEASED WITH GM THAT IT WANTS TO EXPAND ITS TIES BY ADDING A NINTH MODEL TO THE CURRENT AGREEMENT AND INITIATING TALKS TO BUY GM POWER STEERING AND AUTOMATIC TRANSMISSIONS MR PASHIN EVEN LEAVES OPEN THE POSSIBILITY THAT VAZ MIGHT TRY TO EDGE INTO THE US MARKET IT ALREADY SELLS VEHICLES IN CANADA OUR VEHICLE IS RELIABLE AND DURABLE MR PASHIN SAID YESTERDAY THROUGH AN INTERPRETER IT'S RATHER CHEAP IT'S POSSIBLE IT COULD FIND A MARKET IN NORTH AMERICA 9305130117 930513 CZECH SLOVAK JOBLESS RATES FALL FRANKFURT UNEMPLOYMENT IN THE CZECH AND SLOVAK REPUBLICS DROPPED IN APRIL FROM MARCH ACCORDING TO REPORTS BY THE CTK NEWS AGENCY THE NUMBER OF JOBLESS IN THE CZECH REPUBLIC DROPPED BY 8931 PEOPLE IN APRIL TO 142639 AND THE UNEMPLOYMENT RATE SLIPPED TO 271 FROM 288 IN MARCH CTK REPORTED CITING THE MINISTRY OF LABOR AND SOCIAL AFFAIRS THE NUMBER OF UNEMPLOYED IN SLOVAKIA DROPPED TO 304682 PEOPLE DOWN 1408 FROM MARCH THE UNEMPLOYMENT RATE EASED TO 1196 FROM 1201 IN MARCH CTK REPORTED 9305130116 930513 DIVIDEND NEWS AMERICAN INTERNATIONAL GROUP AMERICAN INTERNATIONAL GROUP ANNOUNCED A 3FOR2 STOCK SPLIT AND RAISED THE QUARTERLY CASH DIVIDEND 71 THE STOCK SPLIT IS PAYABLE JULY 30 TO SHARES OF RECORD JULY 2 THE NEW DIVIDEND 10 CENTS A SHARE ON AN AFTERSPLIT BASIS IS PAYABLE SEPT 17 TO SHARES OF RECORD SEPT 3 THE CURRENT QUARTERLY DIVIDEND IS 14 CENTS A SHARE ON A PRESPLIT BASIS THE ANNOUNCEMENT CAME AT THE NEW YORK INSURANCE COMPANY'S ANNUAL MEETING 9305130115 930513 INTERNATIONAL CONCERN GROWS AS MORE JOIN GERMAN STRIKES BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN WITH STRIKES IN EASTERN GERMANY'S STEEL ENGINEERING AND ELECTRICAL INDUSTRIES SET TO SPREAD BUSINESS EXECUTIVES AND ECONOMISTS ARE VOICING CONCERN ABOUT THE ECONOMIC IMPACT OF A LENGTHY WORK STOPPAGE THE WORRIES WERE EXPRESSED AS WORKERS IN THREE EASTERN GERMAN STATES VOTED OVERWHELMINGLY TO SUPPORT THE WALKOUT AS PART OF ITS STRATEGY OF GRADUALLY RAISING THE PRESSURE ON THE EMPLOYERS' ASSOCIATION THE STRIKING UNION IG METALL HAS THUS FAR CONFINED STOPPAGES TO SAXONY AND MECKLENBURGVORPOMMERN THE OTHER TWO STATES IN THE FORMERLY COMMUNIST REGION SO FAR ABOUT 40000 WORKERS HAVE WALKED OFF THE JOB IN THE TWO STATES BUT THE NUMBERS COULD GROW RAPIDLY IF MANY FIRMS ARE HIT BEGINNING NEXT WEEK IN THE STATES WHERE WORKERS HAVE JUST VOTED ADDING TO THE DISRUPTIONS YESTERDAY WERE WARNING STRIKES AND SOLIDARITY DEMONSTRATIONS ALL OVER GERMANY BY 300000 IG METALL MEMBERS IN WOLFSBURG ALONE AT THE HEADQUARTERS OF VOLKSWAGEN AG 25000 WORKERS DEMONSTRATED AT VW'S ADMINISTRATION BUILDING THIS COULD LAST A LONG TIME BECAUSE IT'S A FIGHT OVER PRINCIPLE SAYS OTTO SOEBERG PRESIDENT OF KVAERNER WARNOW WERFT GMBH A SHIPBUILDING SUBSIDIARY OF THE NORWEGIAN CONGLOMERATE KVAERNER AS THE COMPANY'S 3000 WORKERS WALKED OUT ON MAY 4 THERE ARE VERY FIXED POSITIONS ON BOTH SIDES AND THAT IS ANNOYING AT ISSUE IS THE CANCELLATION BY EMPLOYERS OF SCHEDULED PAY INCREASES OF UP TO 26 THE OWNERS OFFERED INSTEAD A 9 WAGE INCREASE TO MATCH INFLATION THE BIGGER INCREASES WERE PART OF A 1991 AGREEMENT TO BRING EASTERN WAGES TO THE WESTERN LEVEL BY 1994 UNION LEADERS SAY EMPLOYERS WHO CONTEND THE BIG WAGE BOOSTS AREN'T JUSTIFIED BY EASTERN GERMAN LEVELS OF PRODUCTIVITY MUST RETRACT THEIR UNILATERAL MOVE SO FAR ACCORDING TO ERHARD BREDENBREUKER AN OFFICIAL AT THE TREUHANDANSTALT THE AGENCY RESPONSIBLE FOR PRIVATIZING EASTERN GERMAN FIRMS THERE HAVE BEEN NO CASES OF COMPANIES EXPRESSING NEW DOUBTS ABOUT INVESTMENT IN THE REGION BUT HE ADDS NATURALLY IT MAKES ONE WORRY SHOULD THE CONFLICT LAST FOUR WEEKS OR MORE THEN IT WILL HAVE A NEGATIVE EFFECT ON INVESTMENT PLANS LIKE MANY EXECUTIVES MR BREDENBREUKER BELIEVES THE AREA'S ATTRACTION IS THAT OVERALL LABOR COSTS WILL REMAIN BELOW THE WEST GERMAN LEVEL EVEN WHEN COLLECTIVE BARGAINING AGREEMENTS PROVIDE THE SAME WAGES FOR BOTH PARTS OF THE COUNTRY THE REASON IS THAT FIRMS IN THE WEST ADD BONUSES AND BENEFITS THAT EASTERN WORKERS AREN'T LIKELY TO RECEIVE FOR YEARS BECAUSE OF SLOWRISING PRODUCTIVITY BUT EVEN THAT COMPARATIVE EDGE COULD BE ENDANGERED IF A COMPROMISE CAN'T BE HAMMERED OUT FAST THE IMAGE OF EASTERN GERMANY IS OF A COUNTRY WITH A HIGH COST LEVEL BUT WITH STABLE POLITICAL CONDITIONS AND QUALIFIED LABOR SAYS PETER PIETSCH AN ECONOMIST AT COMMERZBANK BUT THESE ADVANTAGES WILL BE LOST IF THE STRIKE LASTS A LONG TIME BATTERED BY BAD NEWS ABOUT GERMANY'S ECONOMIC PROBLEMS SOME INVESTORS IN THE EASTERN STATES TAKE AN ATTITUDE OF WEARY EQUANIMITY WE'RE NOT SO CALM BUT THESE STRIKES ARE PART OF OUR SOCIETY SAYS FRITZ MAYER MANAGING DIRECTOR OF KARL MAYER GMBH MR MAYER'S FIRM WHICH MAKES TEXTILE MACHINERY RECENTLY BOUGHT A COMPANY IN THE EASTERN CITY OF CHEMNITZ THAT HASN'T YET BEEN HIT BY A STRIKE HE SEEMS UNFAZED WHEN GERMANY AS A COMPETITIVE PLACE FOR PRODUCTION DISAPPEARS THEN YOU MOVE ELSEWHERE 9305130114 930513 BUSINESS BRIEF CONTINENTAL PLACES ORDER WITH BOEING FOR 92 PLANES VALUED AT 45 BILLION HOUSTON CONTINENTAL AIRLINES ORDERED 92 JETLINERS FROM BOEING CO VALUED AT 45 BILLION INCLUDING 12 767S AND FIVE 777S WHICH ARE NEW WIDEBODY AIRCRAFT TO BE USED FOR LONGHAUL INTERNATIONAL ROUTES CONTINENTAL ALSO PLACED OPTIONS FOR ANOTHER 98 PLANES IN ADDITION CONTINENTAL PLACED ENGINE ORDERS WITH A POTENTIAL VALUE OF 15 BILLION WITH GE AIRCRAFT ENGINES A UNIT OF GENERAL ELECTRIC CORP ACCORDING TO GENERAL ELECTRIC THE VALUE OF THE FIRM ORDERS FOR ENGINES EXCLUDING OPTION ORDERS IS 725 MILLION A SPOKESMAN SAID GENERAL ELECTRIC WHICH IS BASED IN FAIRFIELD CONN ALSO SIGNED A 10YEAR ENGINEMAINTENANCE CONTRACT WITH CONTINENTAL ALTHOUGH TERMS WEREN'T DISCLOSED BRITAIN'S ROLLSROYCE PLC ALSO RECEIVED AN ENGINE ORDER WITH A POTENTIAL VALUE OF MORE THAN 600 MILLION FOR ITS RB211535E4 ENGINES TO POWER NEW BOEING 757S FOR CONTINENTAL THE GE ORDERS COME AT A TIME WHEN GENERAL ELECTRIC CAPITAL CORP A GE UNIT HAS PUT UP 310 MILLION IN FRESH CAPITAL THAT HELPED CONTINENTAL TO LEAVE BANKRUPTCY PROTECTION TWO WEEKS AGO THE GE FINANCE ARM IS ALSO PREPARING TO LOAN CONTINENTAL 750 MILLION TO 850 MILLION FOR NEW AIRCRAFT AND AIRCRAFT ENGINES ACCORDING TO COMMERCIAL AVIATION REPORT CONTINENTAL DECLINED TO COMMENT ON THE COMMERCIAL AVIATION REPORT OR ON THE TERMS OF ITS GENERAL ELECTRIC ENGINE ORDERS PEOPLE FAMILIAR WITH CONTINENTAL'S FINANCING SAID THAT GE AIRCRAFT ENGINES NOT GE CAPITAL WAS PROVIDING CONTINENTAL WITH FINANCING OF MORE THAN 500 MILLION FOR NEW ENGINES NOT THE 750 TO 850 MILLION CITED IN THE TRADE PUBLICATION THOSE PEOPLE SAID GENERAL ELECTRIC'S TOTAL DEBT EXPOSURE TO CONTINENTAL INCLUDING THE 310 MILLION INVESTMENT AND AIRCRAFTENGINE FINANCING IS ABOUT 13 BILLION FOR CONTINENTAL THE MAJORITY OF THE BOEING ORDER REPLACES ORDERS THAT HAD BEEN MADE BEFORE THE AIRLINE ENTERED BANKRUPTCYLAW REORGANIZATION IN 1990 FOR BOEING WHICH IS BASED IN SEATTLE THE MOST IMPORTANT PART OF THE SALE CENTERS ON FINDING ANOTHER CUSTOMER FOR ITS NEW TWINENGINE 767S AND 777S IN ADDITION TO THE FIRM ORDERS FOR THOSE AIRCRAFT CONTINENTAL PLACED OPTIONS FOR 18 767S AND FIVE 777S THE BOEING ORDER ALSO INCLUDES 50 737S AND AN OPTION FOR AN ADDITIONAL 50 737S AND FIRM ORDERS FOR 25 757S AND AN OPTION FOR AN ADDITIONAL 25 757S 9305130113 930513 HANNA TO BUY ASSETS IN MEXICO CLEVELAND MA HANNA CO SAID IT REACHED A TENTATIVE AGREEMENT TO ACQUIRE THE THERMOPLASTIC RESIN DISTRIBUTION BUSINESS OF PLASTICOS POLISOL SA DE CV IN MEXICO CITY TERMS WEREN'T DISCLOSED HANNA WHICH MAKES FORMULATED POLYMERS AND COLORANTS FOR PLASTICS SAID THE MOVE IS PART OF A PLAN TO ESTABLISH A POLYMER PROCESSING AND DISTRIBUTION CAPABILITY IN MEXICO 9305130112 930513 MORRISON KNUDSEN GETS CONTRACT BOISE IDAHO MORRISON KNUDSEN CORP SAID IT RECEIVED A 205 MILLION CONTRACT TO HELP IMPROVE MONGOLIA'S COAL MINE AND POWER PLANT PRODUCTION THE CONTRACT WAS AWARDED TO THE ENGINEERING AND CONSTRUCTION COMPANY BY THE US AGENCY FOR INTERNATIONAL DEVELOPMENT MORRISON SAID WORK ON THE PROJECT WILL BEGIN IMMEDIATELY 9305130111 930513 WHO'S NEWS NEW HAMPSHIRE ATTORNEY GALLAGHER IS CONSIDERED FOR CHAIRMAN OF FDIC BY FRED R BLEAKLEY AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL CHRISTOPHER GALLAGHER A NEW HAMPSHIRE LAWYER AND ADVISER TO PRESIDENT CLINTON HAS EMERGED AS THE SECOND CANDIDATE UNDER ACTIVE CONSIDERATION TO HEAD THE FEDERAL DEPOSIT INSURANCE CORPORATION MR GALLAGHER 53 YEARS OLD BECAME AN ADVISER ON BANKING TO MR CLINTON DURING HIS CANDIDACY BEGINNING IN NEW HAMPSHIRE WHERE A BANKING CRISIS HAD SEVERELY CURTAILED LENDING AND WAS A MAJOR ISSUE IN TESTIMONY BEFORE CONGRESS MONDAY MR GALLAGHER SIDED WITH THE ADMINISTRATION'S CALL FOR LESSREPRESSIVE REGULATIONS TO EASE THE CREDIT CRUNCH ON LENDING TO SMALL AND MEDIUMSIZED BUSINESSES ACCORDING TO ADMINISTRATION OFFICIALS MR GALLAGHER JOINS RICKI TIGERT A WASHINGTON LAWYER AND FORMER ASSOCIATE GENERAL COUNSEL FOR INTERNATIONAL BANKING AT THE FEDERAL RESERVE BOARD AS THE LEADING CANDIDATES TO HEAD THE FDIC SEVERAL WEEKS AGO MS TIGERT APPEARED TO BE THE LEADING CANDIDATE BUT SINCE THEN THE WHITE HOUSE IS SAID TO HAVE HEARD CONCERN ABOUT HER LACK OF EXPERIENCE IN RUNNING LARGE ORGANIZATIONS BOTH MR GALLAGHER AND MS TIGERT HAVE PASSED THROUGH A LONG STRING OF INTERVIEWS WITH TOP OFFICIALS IN THE TREASURY AND THE WHITE HOUSE BOTH HAVE MET WITH AND BEEN BLESSED BY TREASURY SECRETARY LLOYD BENSTEN ACCORDING TO ADMINISTRATION OFFICIALS MR GALLAGHER DECLINED TO COMMENT ON HIS POSSIBLE NOMINATION A PRINCIPAL IN THE CONCORD FIRM OF GALLAGHER CALLAHAN & GARTRELL HE IS GENERAL COUNSEL OF THE NEW HAMPSHIRE BANKERS ASSOCIATION AND WAS ACTIVE IN THE DEBATE OVER STATEWIDE BRANCHING INTERSTATE BANKING AND THE INTRODUCTION OF NEGOTIABLE ORDER OF WITHDRAWAL NOW ACCOUNTS THAT BEGAN IN NEW ENGLAND AND BECAME POPULAR NATIONWIDE IN THE EARLY 1980S A HOLY CROSS COLLEGE AND HARVARD LAW SCHOOL GRADUATE HE SAID IN HIS TESTIMONY MONDAY THAT IF CONGRESS ESTABLISHES A REGULATORY REGIME THAT PRESUMES THAT BANKERS ARE NOT TRUSTWORTHY THAT PUNISHES THE ASSUMPTION OF RISK AND THREATENS TO WIPE OUT ACTIVE COMMERCIAL LENDERS IF THEIR AREA'S ECONOMY FALTERS BANKERS WILL NOT MAKE RISKY LOANS ONE ADVANTAGE THAT MR GALLAGHER BRINGS TO THE JOB IS A STRONG APPRECIATION OF THE PROBLEMS THAT BANKS HAVE HAD IN A STRICT REGULATORY ENVIRONMENT AND THE IMPACT THAT TIGHT CREDIT HAS HAD ON SMALL BUSINESSES ENCOURAGING BANKS TO MAKE MORE LOANS TO SMALL BUSINESS AND FOR COMMUNITY AND RURAL DEVELOPMENT IS ONE OF MR CLINTON'S TOP ECONOMIC PRIORITIES THE CHAIRMAN OF THE FDIC IS IN CHARGE OF A LARGE BUREAUCRACY THAT RUNS THE BANK DEPOSIT INSURANCE FUND CLOSES FAILED BANKS AND SERVES AS THE PRIMARY FEDERAL REGULATOR FOR 7000 BANKS BECAUSE THE FIVEMEMBER FDIC BOARD INCLUDES THE COMPTROLLER OF THE CURRENCY WHO REGULATES NATIONAL BANKS AND THE DIRECTOR OF THE OFFICE OF THRIFT SUPERVISION WHICH SUPERVISES SAVINGS AND LOANS IT OFTEN TAKES A LEADING ROLE IN COORDINATING BANKING POLICY TODAY'S LOW INTEREST RATES AND A NEW BANK LAW THAT HAS FORCED BANKS TO RAISE NEW CAPITAL HAVE RESTORED THE BANKING INDUSTRY TO HEALTH IN MOST AREAS OF THE COUNTRY EXCEPT CALIFORNIA AS A RESULT THE NEW FDIC CHAIRMAN ISN'T LIKELY TO HAVE TO DEAL WITH A RASH OF BANK FAILURES INSTEAD THE MAIN PROBLEM IS LIKELY TO BE MANAGERIAL THE FDIC HAS ABOUT 38 BILLION OF FAILEDBANK ASSETS TO DISPOSE OF IN ADDITION UNDER CURRENT LAW THE RESOLUTION TRUST CORP WHICH SELLS OFF THE ASSETS OF FAILED THRIFTS IS TO BE FOLDED INTO THE FDIC WITHIN THE NEXT FEW YEARS THE RTC HAS ABOUT 100 BILLION OF ASSETS TO SELL OFF LIKE MR GALLAGHER MS TIGERT KNOWS PRESIDENT CLINTON PERSONALLY SHE HAS ATTENDED THE RENAISSANCE WEEKENDS A NEW YEAR'S GATHERING OF BABY BOOMERS THAT MR AND MRS CLINTON HAVE ATTENDED FOR YEARS IN HILTON HEAD SC 9305130110 930513 TERADYNE TEST SYSTEMS SOLD BOSTON TERADYNE INC SAID MOTOROLA INC SIGNED A PURCHASE AGREEMENT TO BUY TERADYNE'S A570 AND A580 ADVANCED MIXEDSIGNAL TEST SYSTEMS A SPOKESMAN FOR TERADYNE WHICH MAKES SEMICONDUCTOR TEST EQUIPMENT SAID BOTH COMPANIES ESTIMATE THAT MORE THAN 50 SYSTEMS WILL BE DELIVERED TO MOTOROLA UNDER THE AGREEMENT FINANCIAL TERMS WEREN'T DISCLOSED MOTOROLA WILL USE THE SYSTEMS TO TEST MIXEDSIGNAL INTEGRATED CIRCUITS USED IN COMPUTERS AND COMMUNICATIONS PRODUCTS MOTOROLA IS A SCHAUMBURG ILL SEMICONDUCTOR AND COMMUNICATIONS EQUIPMENT CONCERN 9305130109 930513 CORRECTIONS & AMPLIFICATIONS THE DEVELOPER OF THE HYATT REGENCY WAIKOLOA IN HAWAII IS RENEGOTIATING ITS DEBT WITH ITS LENDERS BUT THE HOTEL IS NOT IN BANKRUPTCYLAW PROCEEDINGS AN ARTICLE TUESDAY ON JAPANESE LENDERS STATED INCORRECTLY THAT THE HOTEL HAD FILED FOR BANKRUPTCY BLOCKBUSTER ENTERTAINMENT CORP INCREASED ITS ANNUAL DIVIDEND TO 10 CENTS A SHARE FROM EIGHT CENTS AN ARTICLE YESTERDAY INCORRECTLY DESCRIBED THE DIVIDEND AS A QUARTERLY PAYOUT SCRIPPS HOWARD INC IS AMONG THREE MEDIA COMPANIES THAT MADE INVESTMENTS IN ALTERNATE POSTAL DELIVERY INC A PROVIDER OF PRIVATE DELIVERY OF SECONDCLASS AND THIRDCLASS MAIL AN ARTICLE IN YESTERDAY'S BUSINESS BRIEFS SECTION INCORRECTLY INDICATED THE INVESTMENT WAS BY SCRIPPS HOWARD BROADCASTING CO A SUBSIDIARY SCRIPPS HOWARD INC IS A SUBSIDIARY OF EW SCRIPPS CO 9305130108 930513 REVIEW & OUTLOOK EDITORIAL ASIDES WHAT GOES AROUND UNIVERSITIES MIGHT TAKE NOTE OF A FEDERAL JURY'S DECISION THAT CITY UNIVERSITY OF NEW YORK VIOLATED THE FREE SPEECH RIGHTS OF FLAKY BLACKSTUDIES PROFESSOR LEONARD JEFFRIES CALL IT ANOTHER CHAPTER IN THE NEW EFFORT TO RESTORE STANDARDS TO ACADEMIA SCHOOLS SEEM TO HAVE THOUGHT THEY COULD GET OFF THE HOOK BY INSTALLING VIRTUALLY ANYONE IN THESE JOBS GUESS AGAIN 9305130107 930513 LABATT SELLS TUSCAN DAIRY FARMS TORONTO JOHN LABATT LTD SAID IT SOLD TUSCAN DAIRY FARMS INC PART OF LABATT'S US DAIRY OPERATIONS TO DAIRY ENTERPRISES INC TERMS WEREN'T DISCLOSED LABATT SPUN OFF ITS CANADIAN DAIRY OPERATIONS AULT FOODS LTD INTO A PUBLICLY TRADED COMPANY EARLIER THIS MONTH AND SAID IT WILL SELL ITS ENTIRE US DAIRY OPERATIONS LABATT IS A TORONTO BEER AND ENTERTAINMENT CONCERN DAIRY ENTERPRISES A COMPANY FORMED FOR THE PURPOSE OF ACQUIRING TUSCAN IS BASED IN UNION NJ 9305130106 930513 CROP GENETICS WINS APPROVAL COLUMBIA MD CROP GENETICS INTERNATIONAL CORP SAID ITS SPODX BIOINSECTICIDE HAS BEEN APPROVED BY THE ENVIRONMENTAL PROTECTION AGENCY FOR USE IN COMMERCIAL CROP PROTECTION PRODUCTS THE BIOINSECTICIDE CONTROLS THE BEET ARMYWORM WHICH ATTACKS CROPS SUCH AS COTTON TOMATOES AND LETTUCE AS WELL AS FLOWERS AND ORNAMENTAL PLANTS THE PRODUCT WILL BE MANUFACTURED BY CROP GENETICS A DEVELOPER OF BIOLOGICAL PESTICIDES AND MARKETED BY DUPONT AGRICULTURAL PRODUCTS A UNIT OF DUPONT CO DUPONT IS A CHEMICAL ENERGY AND SPECIALTY PRODUCTS CONCERN 9305130105 930513 AIR EXPRESS INTERNATIONAL DARIEN CONN AIR EXPRESS INTERNATIONAL CORP SAID IT AGREED IN PRINCIPLE TO BUY THE VOTAINER GROUP OF COMPANIES FROM ROYAL DUTCH VAN OMMEREN NV OF THE NETHERLANDS THE VOTAINER GROUP WHICH CONSOLIDATES FREIGHT FOR OCEAN SHIPPING HAD 1992 REVENUE OF ABOUT 130 MILLION AN AIR EXPRESS SPOKESMAN SAID FINANCIAL TERMS WILL BE DISCLOSED WHEN THE TRANSACTION IS CLOSED WHICH IS SCHEDULED FOR JULY 1 AIR EXPRESS AN INTERNATIONAL AIRFREIGHT FORWARDER SAID THE PROPOSED ACQUISITION EXPEDITES ITS PLANS TO BECOME A BIGGER PRESENCE IN THE OCEANFREIGHT BUSINESS 9305130104 930513 TECHNOLOGY & HEALTH FINDINGS SUPPORT COLON CANCER TEST TWO STUDIES CLASH BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY ADDED FUEL TO A CONTROVERSY OVER THE USEFULNESS OF THE FECAL BLOOD TEST FOR COLON AND RECTAL CANCER THE STUDY FOUND THAT ANNUAL USE OF THE HEMOCCULT TEST MADE BY BRITISH SMITHKLINE BEECHAM PLC COULD REDUCE DEATHS FROM COLONRECTAL CANCER BY A THIRD THE TEST INVOLVES A PERSON MAKING FECAL SMEARS ON A SPECIAL PIECE OF PAPER AT HOME AND MAILING IT TO A LABORATORY TO BE CHECKED FOR BLOOD THAT MIGHT BE COMING FROM A COLON OR RECTAL TUMOR DURING THE 13 YEARS IN WHICH RESEARCHERS FOLLOWED THE FATES OF 46500 PERSONS FEWER THAN SIX OF EVERY 1000 PERSONS WHO USED THE HEMOCCULT TEST ONCE A YEAR DIED OF COLONRECTAL CANCER IN COMPARISON THE 13YEAR DEATH RATE AMONG THOSE WHO DIDN'T USE THE TEST OR WHO USED IT ONLY EVERY OTHER YEAR WAS MORE THAN EIGHT PER 1000 PERSONS THE RESULTS WERE REPORTED BY A TEAM OF UNIVERSITY OF MINNESOTA MEDICAL SCIENTISTS IN THIS WEEK'S ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE THE STUDY WAS FUNDED BY THE NATIONAL INSTITUTES OF HEALTH THE RESULTS SHOW THAT WE NOW HAVE AN EFFECTIVE SCREENING METHOD FOR COLON AND RECTAL CANCER AND I BELIEVE WE SHOULD USE IT DECLARED AN ACCOMPANYING EDITORIAL BY SIDNEY J WINAWER OF MEMORIAL SLOANKETTERING CANCER CENTER IN NEW YORK HE SAID THE RESULTS SUPPORT RECOMMENDATIONS LIKE THOSE OF THE AMERICAN CANCER SOCIETY THAT STOOL BLOOD TESTS BE PERFORMED EVERY YEAR FOR PERSONS OVER 50 YEARS OF AGE THE CONCLUSIONS CONTRAST MARKEDLY WITH THOSE OF A STUDY PUBLISHED TWO MONTHS AGO THAT QUESTIONED THE VALUE OF STOOL BLOOD TESTS LIKE HEMOCCULT THAT STUDY WAS DONE BY A TEAM OF SCIENTISTS AT THE MAYO CLINIC IN ROCHESTER MINN AND THE AMC CANCER CENTER IN DENVER UNLIKE THE NEWER STUDY THE MAYO CLINIC STUDY DIDN'T LOOK AT THE LONGTERM DEATH RATE FROM COLON CANCER AMONG THOSE PEOPLE USING THE STOOL BLOOD TEST INSTEAD IT TRIED TO PINPOINT HOW GOOD THE TEST IS BY LOOKING AT HOW MANY PEOPLE DEVELOPED COLON CANCER THREE YEARS AFTER THEY USED THE TEST THE VOLUNTEERS WERE PEOPLE AT HIGH RISK OF DEVELOPING COLON CANCER SPECIFICALLY 12300 CLOSE RELATIVES OF COLON CANCER PATIENTS THE MAYO CLINIC STUDY FOUND THAT STOOL BLOOD TESTS HAD MISSED TWOTHIRDS TO THREEQUARTERS OF THE COLON AND RECTAL CANCERS THAT SUBSEQUENTLY DEVELOPED IN THE VOLUNTEERS THE MAYO CLINIC RESEARCHERS DECLARED THAT THE FECAL BLOOD TEST IS AT BEST A FLAWED SCREENING MARKER FOR COLORECTAL NEOPLASIA THEREBY TRIGGERING A DEBATE OVER RECOMMENDATIONS THAT THE TEST BE USED ANNUALLY 9305130103 930513 BIOTECHNOLOGY SEES PROFIT IN '94 NEW YORK BIOTECHNOLOGY GENERAL CORP SAID IT SHOULD BE PROFITABLE IN 1994 BECAUSE OF EXPECTED NEW DRUG APPROVALS AS WELL AS THE START OF SALES OF HUMAN GROWTH HORMONE IN JAPAN AND EUROPE DURING 1993 THE MAKER OF GENETICALLY ENGINEERED HEALTHCARE PRODUCTS SAID PRODUCTS EXPECTED TO BE APPROVED AND MARKETED OVER THE NEXT TWO TO THREE YEARS INCLUDE HUMAN GROWTH HORMONE OXANDROLONE HEPATITISB VACCINE SUBLINGUAL TESTOSTERONE AND PORCINE GROWTH HORMONE THE PRODUCT PIPELINE WILL BE ENHANCED BY PRODUCTS OF GYNEX PHARMACEUTICALS INC VERNON HILLS ILL WHICH BIOTECHNOLOGY GENERAL HAS AGREED TO ACQUIRE 9305130102 930513 LETTERS TO THE EDITOR WHAT'S IN A NAME I WRITE TO CORRECT THE UNFORTUNATE IMPRESSION LEFT BY YOUR EDITORIAL OF APRIL 26 BUFFALOED AT PENN ABOUT A STUDENT DISCIPLINARY CASE NOW PENDING AT THE UNIVERSITY OF PENNSYLVANIA ALTHOUGH I AM NOT PERMITTED BY FEDERAL LAW OR UNIVERSITY POLICY TO DISCUSS THE FACTS OF THE CASE I CAN PUT IT INTO CONTEXT FREEDOM OF EXPRESSION IS THE PARAMOUNT VALUE AT PENN AND WE ARE UNWAVERING IN OUR COMMITMENT TO PROTECT IT TO THAT END WE HAVE WELLESTABLISHED POLICIES TO PROTECT OPEN EXPRESSION AND WE HAVE VERY DELIBERATE AND FAIR PROCEDURES FOR JUDGING ALLEGED VIOLATIONS PENN IS A SPECIAL KIND OF COMMUNITY NOT ONLY DOES IT PUT THE FREE EXCHANGE OF IDEAS AT THE CORE OF ITS BEING BUT IT STRIVES TO ENSURE NO MEMBER OF THE COMMUNITY IS PREVENTED FROM FULL PARTICIPATION IN THOSE DEBATES BY INTIMIDATING AND ABUSIVE RACIAL SLURS INTENDED ONLY TO WOUND RATHER THAN TO ENLIGHTEN WHETHER A STUDENT HAS ENGAGED IN RACIAL HARASSMENT ACCORDING TO OUR VERY NARROWLY DEFINED POLICY IS NOW UP TO A JUDICIAL PANEL OF STUDENTS AND FACULTY TO DETERMINE IF ERRORS ARE MADE AMPLE AVENUES OF APPEAL ARE AVAILABLE AFTER THE JUDICIAL PANEL HAS REACHED ITS CONCLUSION THOSE WHO THINK THEY KNOW WHAT THE OUTCOME SHOULD BE ARE IMPATIENT WITH THE PROCESS BUT THAT PROCESS MUST BE ALLOWED TO RUN ITS COURSE THIS IS A STUNNING EXAMPLE OF PCPARANOIA AND THE MALIGNANT EROSION OF ALL THAT ACADEMIA SHOULD REPRESENT IN PARTICULAR THE PROCESS HANDLED BY ROBIN READ THE UNIVERSITY'S CAMPUS JUDICIAL INQUIRY OFFICER HAS CONDEMNED MR JACOBOWITZ FOR A NONEXISTENT CRIME AND IGNORED DATA THAT CONTRADICTED WHAT SEEMS TO BE HER PERSONALLY HELD BELIEF MR JACOBOWITZ AS REPRESENTED IN THE EDITORIAL SHOULD BE CONGRATULATED FOR HIS COURAGE TO STAND HIS GROUND ALL THE WAY THROUGH AND FOR SPEAKING UP INITIALLY WHEN HIS RIGHTS AS A STUDENT WERE INFRINGED UPON AS A GROUP OF ROWDY PEOPLE DISTURBED THE SCHOLARLY ATMOSPHERE OF THE CAMPUS PENN WILL BE INDELIBLY DAMAGED SHOULD THIS STUDENT BE HARASSED FURTHER LET ALONE EXPELLED YOUR ACCOUNT OF MR JACOBOWITZ'S ORDEAL FOR HAVING REFERRED TO A GROUP OF NOISY BLACK SORORITY SISTERS AS WATER BUFFALO REVEALS THAT MS READ IS LONG ON PC BUT SHORT ON MAMMALOGY A WATER BUFFALO IS A SOUTHEAST ASIAN MAMMAL THE LARGE BLACK ANIMALS THAT LIVE IN AFRICA ARE AFRICAN OR CAPE BUFFALO I REFER HER TO DORST AND DANDELOT A FIELD GUIDE TO THE LARGE MAMMALS OF AFRICA WATER BUFFALO WHEN USED TO DESCRIBE A BOISTEROUS FRATERNAL OR SORORAL GROUP MAY ALSO DERIVE FROM FRED FLINTSTONE'S FRATERNAL ORGANIZATION WHICH IN TURN REFERS TO A RATHER LOOSE BRITISH FRATERNAL ORGANIZATION THE ANTEDILUVIAN ORDER OF BUFFALOES WHICH MET IN BRITISH PUBS WITH THE BARS OPEN RESULTING IN GATHERINGS THAT WERE NOT ALWAYS MODELS OF DECORUM ERGO TO REFER TO MEMBERS OF ANY NOISY OR ROWDY GROUP AS WATER BUFFALO IS NEITHER RACIST NOR SEXIST AS THESE TERMS ARE USED AND GIVES LITTLE OFFENSE TO ANY BUT THE ANTEDILUVIAN ORDER WHO ARE ALL WASPS MS READ'S INSISTENCE ON FOLLOWING THROUGH WITH EDEN JACOBOWITZ'S PROSECUTION ESPECIALLY IN LIGHT OF THE ACADEMICS WHO HAVE OFFERED TO TESTIFY ON HIS BEHALF WOULD BE MORE APPROPRIATE IN AN INSTITUTION THAT DISCOURAGES INTELLIGENCE INDEED MS READ'S VIGILANT PURSUIT OF MR JACOBOWITZ COLLIDES WITH THE PRINCIPLES THAT SHOULD BE ESPOUSED BY A UNIVERSITY COLLEGE PROVIDES A STUDENT WITH NUMEROUS PATHS TO A DIPLOMA ONE HOPES THAT ALONG THE WAY A MIND IS FREE TO ENGAGE IN AND BE CHALLENGED BY A SPECTRUM OF IDEAS THE SITUATION AT PENN IS JUST THE LATEST IN A LONG LINE OF ABUSES IN THE APPLICATION OF THE UNIVERSITY'S SELECTIVE FREE SPEECH POLICY THE FOLLOWING INCIDENT WHICH OCCURRED JUST A FEW WEEKS BEFORE THE TROUBLE SURROUNDING MR JACOBOWITZ STARTED DEMONSTRATES WHAT FREE SPEECH MEANS AT PENN EARLY ONE MORNING A CAMPUS HOMOSEXUALBISEXUAL ORGANIZATION DESCENDED ON THE MAIN PEDESTRIAN WALKWAY KNOWN AS LOCUST WALK TO EXPRESS ITS FEELINGS BY WRITING ON UNIVERSITY PROPERTY WITH CHALK CONSCIENTIOUS MAINTENANCE WORKERS QUICKLY DISCOVERED THE CHALK AND CLEANED OFF LOCUST WALK BEFORE ANYONE SAW IT IF THIS WAS ALL THERE WAS TO TELL IT WOULD JUST BE ANOTHER FUNNY STORY UNFORTUNATELY THE ADMINISTRATION AND ITS FREE SPEECH POLICY BECAME INVOLVED LATER IN THE AFTERNOON THE HOMOSEXUAL GROUP RETURNED AND AGAIN PROCEEDED TO DEFACE UNIVERSITY PROPERTY WITH ITS MESSAGE THE GROUP COVERED TWO FULL BLOCKS OF FLAGSTONE ON LOCUST WALK AND THE BASE OF A STATUE OF BENJAMIN FRANKLIN PENN'S FOUNDING FATHER WITH DEFAMATORY REMARKS ABOUT GOD AND EXPLICIT REFERENCES TO SEXUAL PRACTICES AND PARTS OF THE HUMAN ANATOMY IN THE NAME OF FREE SPEECH UNIVERSITY OFFICIALS EXPRESSLY FORBADE THE MAINTENANCE WORKERS FROM REMOVING THE GRAFFITI ALLOWING PROSPECTIVE STUDENTS AND THEIR PARENTS AS THEY TOURED LOCUST WALK TO SEE WHAT A GREAT PLACE PENN IS TO GO TO SCHOOL MANY OF MY FELLOW STUDENTS AND I FELT AGGRIEVED AS PRESIDENT HACKNEY LIKES TO DESCRIBE IT THAT THE ADMINISTRATION CONDONED AND ENCOURAGED ACTIVITY THAT MARRED THE PROPERTY OF OUR SCHOOL IN THIS CASE HOWEVER THE PERPETRATORS CARRIED THE RIGHT POLITICAL MESSAGE AND CAMPUS OFFICIALS FELT OBLIGED TO DO NOTHING DURING THE THREE YEARS I HAVE BEEN AT PENN THE UNIVERSITY HAS GRANTED CERTAIN PREFERRED MINORITY GROUPS A FREE HAND TO DO WHATEVER THEY PLEASE OVER THE SAME PERIOD THE CONSERVATIVE SCHOOL PAPER THE RED AND BLUE HAD ITS FUNDING CUT AND MANY LARGELY WHITE FRATERNITIES HAVE EITHER BEEN REMOVED FROM CAMPUS OR BURIED UNDER A MOUNTAIN OF RULES AND REGULATIONS I CAN ONLY IMAGINE THE REACTION OF PRESIDENT HACKNEY IF ONE THESE WHITEMALE EUROCENTRIC AND UNDIVERSIFIED FRATERNITIES DECIDED TO EXERCISE ITS FREE SPEECH RIGHTS IN A SIMILAR MANNER THAT THE FEMALES WERE RUDE AND THOUGHTLESS DOES NOT SEEM TO BE IN DISPUTE PERHAPS A GRADUATION REQUIREMENT AT PENN SHOULD BE A CLASS OF MANNERS & ETIQUETTE IN THIS WAY THEY COULD ALL SEE JUST HOW SILLY THE DISPUTE REALLY IS AND HOW IMPORTANT MANNERS ARE MOREOVER WE SHOULD ALL BE SO FORTUNATE TO BE POSSESSED OF MEANS SUFFICIENT TO SEND OUR CHILDREN TO AN AUGUST SCHOOL THAT WOULD SQUANDER PRECIOUS RESOURCES THIS WAY AND ENGAGE IN MINDLESS LOGROLLING EXERCISES 9305130101 930513 AMERICA WEST TRAFFIC OFF PHOENIX AMERICA WEST AIRLINES SAID ITS APRIL TRAFFIC DECREASED 92 TO 9044 MILLION REVENUE PASSENGER MILES FROM 9962 MILLION LAST YEAR A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE THE AIRLINE SAID ITS LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO 651 FROM 623 FOR THE FIRST FOUR MONTHS OF THE YEAR TRAFFIC FELL ALMOST 12 BUT LOAD FACTOR INCREASED TO 614 FROM 593 FOR THE LATEST PERIOD THE AIRLINE FLEW 35 BILLION REVENUE PASSENGER MILES COMPARED WITH 39 BILLION IN 1992'S COMPARABLE PERIOD 9305130100 930513 FINANCING BUSINESS MTC ELECTRONIC TECHNOLOGIES CO MTC ELECTRONIC TECHNOLOGIES CO RICHMOND BRITISH COLUMBIA SAID IT AGREED TO RAISE 6 MILLION IN A PRIVATE PLACEMENT WITH BANCA DEL GOTTARDO BASED IN SWITZERLAND MTC SAID IT WILL ISSUE 600000 SHARES AT 10 EACH TO BANCA DEL GOTTARDO A UNIT OF SUMITOMO BANK MTC SAID IT WILL USE THE FUNDS FOR GENERAL CORPORATE PURPOSES AND FOR ITS JOINT VENTURE INTERESTS IN CHINA MTC EXPECTS TO MAKE A PUBLIC EQUITY OFFERING THIS SUMMER A SPOKESMAN SAID MTC IS AN ELECTRONICS MANUFACTURER WITH INTERESTS IN JOINT VENTURES AIMED AT PROVIDING TELECOMMUNICATIONS SERVICES IN CHINA THE COMPANY HAS ABOUT EIGHT MILLION SHARES OUTSTANDING SHARES CLOSED AT 975 UP 625 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9305130099 930513 TOP BLACKOWNED FIRMS POST 14 RISE IN REVENUE NEW YORK TOTAL REVENUE OF THE NATION'S 100 LARGEST BLACKOWNED INDUSTRIAL/SERVICE COMPANIES ROSE 14 AND REVENUE OF THE 100 LARGEST BLACKOWNED CAR DEALERSHIPS CLIMBED 15 IN 1992 SAYS BLACK ENTERPRISE MAGAZINE IN ITS 21ST ANNUAL SURVEY OF BLACK BUSINESSES THE MAGAZINE PUBLISHED BY EARL G GRAVES PUBLISHING CO OF NEW YORK FOUND BLACKOWNED COMPANIES POSTING TOTAL REVENUE OF 9 BILLION IN 1992 UP FROM 1991'S 79 BILLION SURVEY RESULTS WILL APPEAR IN THE JUNE EDITION THE 100 LARGEST BLACKOWNED INDUSTRIAL/SERVICE COMPANIES HAD REVENUE TOTALING 57 BILLION RANGING FROM 12 MILLION FOR THE SMALLEST FIRM TO 17 BILLION FOR TLC BEATRICE INTERNATIONAL HOLDINGS INC A NEW YORK FOOD COMPANY GROSS SALES FOR THE 100 TOP BLACKOWNED CAR DEALERSHIPS ROSE TO 33 BILLION TRAINER OLDSMOBILECADILLACPONTIACGMC TRUCK INC WARNER ROBINS GA LED THE LIST WITH REVENUE OF 255 MILLION TOTAL ASSETS OF THE NATION'S 36 BLACKOWNED BANKS WERE UP 48 TO JUST OVER 2 BILLION IN 1992 THE NATION'S 18 BLACKOWNED SAVINGSANDLOAN ASSOCIATIONS HAD 12 BILLION IN ASSETS AN INCREASE OF 59 THE ASSETS OF 23 BLACKOWNED INSURANCE COMPANIES FELL 22 TO 720 MILLION FROM 737 MILLION IN 1991 9305130098 930513 LETTERS TO THE EDITOR ARMY ENGINEER CORP DOING THE BEST IT CAN YOUR APRIL 8 EDITORIAL A JUDGE'S LAMENT MISSES A MAJOR POINT YOU PAINT THE ARMY CORPS OF ENGINEERS AS THE HEAVY IN THE TWODECADE DRAMA OF FINDING THE KEY TO APPROPRIATELY PROTECTING OUR NATION'S VALUABLE WETLANDS LET ME PROVIDE SOME PERSPECTIVE IN 197475 CONGRESS NAMED THE CORPS AS A MAJOR ACTOR IN WETLANDS PROTECTION THROUGH SECTION 404 OF WHAT MOST PEOPLE CALL THE CLEAN WATER ACT THE MOTIVATION WAS TO PUT AN AGENCY INTO A REGULATORY ROLE THAT WAS TRUSTED TO BE BALANCED WEIGHING THE VIEWS OF PROTECTORS DEVELOPERS AND OWNERS I WAS THEN THE COLONEL IN CHARGE OF THE NEW ORLEANS DISTRICT OF THE CORPS MY DUTIES SURGED AS MY CIVILIAN STAFF AND I LEANED HOW TO GRAPPLE WITH THESE NEW RESPONSIBILITIES THE CORPS OFFICES ADDED ENVIRONMENTAL SKILLS TO THEIR ENGINEERING STRENGTHS BOTH CONGRESS AND ENSUING ADMINISTRATIONS BECAME REASONABLY SATISFIED THAT THE CORPS COLONEL WOULD DO AS GOOD A JOB AS POSSIBLE FOR A FEDERAL OFFICIAL IN MAKING THOSE TOUGH CALLS LATER AS HEAD OF THE CORPS' WATER AND REGULATORY PROGRAMS IN WASHINGTON I DEFENDED THE ROLE OF THE CORPS COLONEL IN 36 OFFICES ACROSS THE US INSISTING THAT THE OFFICER BE GIVEN THE CALL AND NOT THOSE WITH POLITICAL AGENDAS I ADMIT SOME OF THOSE BATTLES WERE DIFFICULT BUT THE INSULATION HAS BEEN MAINTAINED NOW YOU BLAME THE MESSENGER OF COURSE CONGRESS CAN CHANGE THE LAWS AND OF COURSE JUDGES CAN BLOW THE WHISTLE BUT YOU SHOULD CELEBRATE A SYSTEM THAT LETS A RESPONSIBLE AGENCY THE ARMY CORPS DO THE BEST IT CAN TO CARRY OUT AN IMPORTANT NATIONAL PROGRAM IN THE 1970S MOST PEOPLE CALLED WETLANDS SWAMPS THERE TO BE MADE WHOLE DRIED OUT FOR DEVELOPMENT USUALLY NOW MOST INFORMED CITIZENS KNOW THAT WETLANDS ARE A IMPORTANT TO ALL OF US AND B DESERVING OF REASONABLE PROTECTION 9305130097 930513 INTERNATIONAL BAA PASSENGER TRAFFIC LONDON BAA PLC SAID PASSENGER TRAFFIC AT ITS SEVEN UK AIRPORTS TOTALED 65 MILLION IN APRIL UP 48 FROM A YEAR EARLIER THAT COMPARES WITH A 62 YEARONYEAR INCREASE IN MARCH TO 61 MILLION PASSENGERS BAA SAID LONDON HEATHROW'S TRAFFIC ROSE 52 FROM A YEAR EARLIER TO 39 MILLION PASSENGERS GATWICK TRAFFIC REMAINED STAGNANT FOLLOWING THE ABSORPTION OF GATWICKBASED DAN AIR SERVICES LTD INTO BRITISH AIRWAYS PLC THE AIRPORT HANDLED 16 MILLION PASSENGERS IN APRIL UP 04 ON THE YEAR 9305130096 930513 TECHNOLOGY PERSEPTIVE BIOSYSTEMS PATENT CAMBRIDGE MASS PERSEPTIVE BIOSYSTEMS INC SAID THE US PATENT AND TRADEMARK OFFICE NOTIFIED IT THAT ITS PATENT APPLICATION WAS ALLOWED FOR POROS PARTICULATE MEDIA USED IN PURIFYING GENETICALLY ENGINEERED PROTEINS AND OTHER MOLECULES WHEN ISSUED THE PATENT WILL COVER THE MANUFACTURE AND SALE OF PARTICLES THAT ENABLE HIGHSPEED ISOLATION OF DESIRED MOLECULES FOR USE AS MEDICINES OR IN OTHER APPLICATIONS THE COMPANY SAID THE BIOTECHNOLOGY CONCERN ADDED THAT THE PATENT WILL PROVIDE ADDITIONAL PROTECTION BEYOND ITS EXISTING PATENT ON THE USE OF ITS PERFUSIVE CHROMATOGRAPHY PROCESS AND WILL GIVE IT AN EXCLUSIVE POSITION IN THE FIELD OF HIGHSPEED CHROMATOGRAPHY A PROCESS FOR PURIFYING MOLECULES 9305130095 930513 WORLD MARKETS PRICES IN TOKYO DROP SHARPLY AHEAD OF A WAVE OF PROFIT REPORTS BUT RALLY IN LONDON FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO EQUITIES PLUNGED 16 WEDNESDAY ON PROFITTAKING AND INDEXLINKED ARBITRAGE SELLING BUT LONDON STOCKS RALLIED FOR THE SECOND TIME IN THREE DAYS AND IN FRANKFURT LOWER GERMAN INTEREST RATES COMBINED WITH TECHNICAL FACTORS TO PUSH SHARE PRICES SHARPLY HIGHER WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10512 DOWN 046 REFLECTING A DECREASE IN MARKETS IN THE ASIA/PACIFIC REGION AND SLIGHT INCREASES IN THE AMERICAS AND EUROPE PRECIOUSMETALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12583 UP 461 OR 38 WITH ECHO BAY MINES OF CANADA POSTING A 15 GAIN IN ITS LOCAL CURRENCY CONSUMERELECTRONICS STOCKS TRAILED AT 10825 DOWN 251 OR 23 WITH SONY OF JAPAN SLIDING 3 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 11434 POINTS TUESDAY SLUMPED 32517 TO 2061520 ON THURSDAY THE NIKKEI INDEX ROSE 16414 POINTS TO CLOSE THE MORNING SESSION AT 2077934 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 580 MILLION SHARES DOWN FROM 6964 MILLION SHARES A DAY EARLIER LOSERS OVERWHELMED GAINERS 796284 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH EDGED DOWN 322 POINTS TUESDAY SANK 2689 ALSO 16 TO 160894 INVESTORS GREW RELUCTANT TO BUY WITH THE NEXT THREE WEEKS TO BE FLOODED WITH CORPORATE EARNINGS REPORTS AND FORECASTS THE MARKET HAD SURGED RECENTLY ON EXPECTATIONS OF AN EARNINGS TURNAROUND FOR THE CURRENT FISCAL YEAR BUT THAT OUTLOOK HAS BECOME LESS FAVORABLE AND STOCKS THAT HAD RISEN SHARPLY IN THE PAST FEW WEEKS GAVE UP GROUND WEDNESDAY HEAVY PROFITTAKING ON LONG FUTURES POSITIONS ALSO RESULTED IN INDEXLINKED ARBITRAGE SELLING THAT ACCELERATED THE SELLOFF KNOCKING THE NIKKEI LOWER AND INSTITUTIONAL INVESTORS AWAITING THE EARNINGS FORECASTS DIDN'T RUSH IN WHEN THE MARKET SLUMPED EXPORTERS ALSO DECLINED AMID FEARS THE YEN'S STRENGTH WILL SOCK THEIR EARNINGS PROSPECTS FOR THE CURRENT YEAR PARTICIPANTS WERE WORRIED THAT IF THE JAPANESE CURRENCY CONTINUED TO WEAKEN FOREIGNERS WOULD RUSH TO TAKE PROFITS ON STOCKS FOREIGN INVESTORS WERE MAJOR SELLERS WEDNESDAY AS THE DOLLAR REBOUNDED AGAINST THE YEN STILL MARKET SENTIMENT REMAINED CAUTIOUSLY BULLISH AND INVESTORS CONTINUED TO SNAP UP SMALLCAPITALIZATION SHARES AND ANY BARGAINS AMONG BLUE CHIPS WHILE MANY ADJUSTED PORTFOLIOS RATHER THAN BAILING OUT OF THE MARKET IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAINED 247 POINTS TO 28608 BRINGING THE GAIN FOR THE WEEK TO 67 POINTS THE FT 30STOCK INDEX ADVANCED 157 POINTS TO 22311 VOLUME WAS 7735 MILLION SHARES COMPARED WITH 674 MILLION SHARES A DAY EARLIER GIVEN LITTLE FUNDAMENTAL CHANGE IN BRITAIN'S ECONOMIC BACKDROP THIS WEEK PARTICIPANTS SAID THE MARKET COULD TAKE A BREATHER FOR THE REST OF THE WEEK AND INVESTORS MAY TAKE PROFITS THE LONDON EXCHANGE THIS WEEK HAS REACTED TO STRONG DEVELOPMENTS IN THE FUTURES PIT AND STOCK INVESTORS WHO ARE UNSURE ABOUT THE MARKET'S OUTLOOK HEDGED THEIR UNDEREXPOSURE IN EQUITIES BY BUYING STOCKINDEX FUTURES THE STAGE FOR STOCKS' RALLY WAS SET EARLY YESTERDAY WHEN THE GERMAN CENTRAL BANK REDUCED ITS KEY MONEY MARKET RATE ACTIVITY WAS WHIPPED UP FURTHER ON A CORPORATE STOCK RIGHTS ISSUE IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1331 POINTS TO 162946 NEAR THE INTRADAY HIGH OF 163170 OF THE DAX ISSUES 26 ADVANCED AND 4 RETREATED THE GERMAN BUNDESBANK THE CENTRAL BANK ACCEPTED REPURCHASE AGREEMENTS WITH THE LOWEST RATE AT 76 DOWN FROM LAST WEEK'S LEVEL OF 771 THE LOWER INTEREST RATE COMBINED WITH ADDED LIQUIDITY OF 2 BILLION MARKS 124 BILLION TRIGGERED A DECLINE IN MONEY MARKET RATES THE STOCK MARKET ALSO BOUNCED UP FROM A DAX RESISTANCE LEVEL WHICH HELPED BUOY PRICES OVERALL IN PARIS STOCKS SCORED HEALTHY GAINS HELPED BY FIRSTQUARTER FRENCH CORPORATE SALES DATA THAT WERE BETTER THAN EXPECTED AND BY THE DECISION BY MAJOR FRENCH LENDERS TO CUT BASE LENDING RATES TO 9 FROM 925 REFLECTING RECENT OFFICIAL RATE CUTS BY THE BANK OF FRANCE AMSTERDAM SHARES FINISHED MODERATELY HIGHER THOUGH SOME STOCKS FELL ON GLOOMY EARNINGS NEWS IN MILAN AFTER FALLING ON NEWS OF A WIDENING CORRUPTION SCANDAL STOCKS RECOVERED TO END HIGHER STOCKHOLM EQUITIES ADVANCED BROADLY IN EXTREMELY HEAVY TRADING DOMINATED BY THE TELECOMMUNICATIONS SECTOR ZURICH SHARES WERE MIXED ON PROFITTAKING THAT TRIMMED EARLY GAINS PARTLY FROM A FIRMER DOLLAR BRUSSELS STOCKS MOSTLY GAINED IN LINE WITH OTHER EUROPEAN MARKETS SYDNEY SHARES ROSE ON WALL STREET'S GAINS AND STRONG AUSTRALIAN CORPORATE EARNINGS REPORTS THE HONG KONG MARKET CLIMBED TO A RECORD ON A SURGE BY PROPERTY STOCKS ON THE CONCLUSION OF SINOBRITISH LAND TALKS THE RALLY WAS AIDED BY HEAVY US BUYING IN THE TELECOMMUNICATIONS SECTOR SINGAPORE SHARES ALSO HIT NEW HIGHS LED BY THE SHIPYARD SECTOR TAIPEI STOCKS ROSE PULLED UP BY PLASTIC AND CEMENT ISSUES MANILA EQUITIES DROPPED BUT BARGAINHUNTING HELPED THE MARKET RECOVER FROM EARLY LOSSES WELLINGTON SHARES ROSE PROPELLED BY WALL STREET'S STRENGTH BUT SEOUL STOCKS FELL IN THIN VOLUME IN A LACKLUSTER SESSION AMONG CORPORATE DEVELOPMENTS IN TOKYO DAIWA HOUSE INDUSTRY ROSE 10 YEN TO 1670 YEN 1498 THE HOME BUILDER'S UNCONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 SLIPPED 38 TO 8711 BILLION YEN 7813 MILLION FROM A YEAR EARLIER DAIWA FORECAST ONLY A 1 INCREASE IN PRETAX PROFIT FOR THE CURRENT YEAR TO 88 BILLION YEN IN LONDON J SAINSBURY SAGGED 14 PENCE OR 29 TO 467 PENCE 720 THE SUPERMARKET CHAIN'S PRETAX PROFIT FOR THE YEAR ENDED MARCH 13 CLIMBED 17 TO 7328 MILLION 113 BILLION LED BY A 13 RISE IN SALES FROM ITS CORE BRITISH STORES OPERATION BUT THE EARNINGS RESULT WAS LESS THAN ANALYSTS HAD EXPECTED THE 14 INCREASE IN THE ANNUAL DIVIDEND TO 10 PENCE A SHARE HAD BEEN WIDELY ANTICIPATED IN PARIS LVMH MOET HENNESSY LOUIS VUITTON GAINED 25 FRENCH FRANCS TO 3625 FRANCS 66838 THE WINE SPIRITS AND LUXURY GOODS COMPANY'S FIRSTQUARTER CONSOLIDATED REVENUE ROSE 36 TO 469 BILLION FRANCS 8647 MILLION 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 9305130094 930513 WESTSPHERE BUYS WENDY'S UNITS NEW YORK WESTSPHERE ASSOCIATES LP SAID IT PURCHASED 25 WENDY'S RESTAURANTS FROM WENDY'S OF SAN DIEGO INC FOR 79 MILLION WENDY'S OF SAN DIEGO IS OWNED BY GENERAL ELECTRIC CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO THE ACQUISITION OF THE RESTAURANTS IN THE SAN DIEGO AREA WILL MAKE WESTSPHERE A MERCHANT BANKING FIRM ONE OF THE LARGEST WENDY'S FRANCHISEES WITH A TOTAL OF 57 UNITS COASTLINE FOOD SERVICES CORP A WESTSPHERE UNIT HAS COMMITTED AS MUCH AS 15 MILLION FOR IMPROVEMENTS 9305130093 930513 COUNTERPOINT IN DEFENSE OF LANI GUINIER BY T ALEXANDER ALEINIKOFF AND RICHARD H PILDES THE EDITORIAL PAGE OF THE WALL STREET JOURNAL HAS CRITICIZED THE SCHOLARSHIP OF PROF LANI GUINIER WHOM PRESIDENT CLINTON HAS NOMINATED TO HEAD THE JUSTICE DEPARTMENT'S CIVIL RIGHTS DIVISION THIS CRITICISM FOCUSES ON HER WRITINGS IN THE COMPLEX FIELD OF VOTING RIGHTS AS SPECIALISTS WHO STRUGGLE WITH THESE DIFFICULT ISSUES WE ARE FAMILIAR WITH PROF GUINIER'S DETAILED ACADEMIC WORK THE COMPLEXITY OF THE PROBLEMS AND THE SERIOUSNESS OF HER SCHOLARSHIP HAVE BEEN LOST IN THE CARICATURES OF HER VIEWS WE HAVE READ PROF GUINIER'S WORK DEFIES EASY CATEGORIZATION SHE IS AN EXPERIENCED VOTINGRIGHTS LITIGATOR YET HER WORK QUESTIONS THE ORTHODOX POSITION OF THE MAJOR VOTINGRIGHTS ORGANIZATIONS SHE BELIEVES THE CURRENT REMEDY FOR VIOLATIONS OF THE VOTING RIGHTS ACT THE CREATION OF SAFE MINORITY DISTRICTS CAN BE DIVISIVE AND INEFFECTIVE SHE HAS DONE AS MUCH AS ANY SCHOLAR TO SEARCH FOR ALTERNATIVES TO OUR KNOWLEDGE SHE HAS NEVER ARGUED THAT THE ACT GUARANTEES MINORITIES A NUMBER OF ELECTORAL SEATS EQUAL TO THEIR PROPORTION OF THE OVERALL POPULATION INSTEAD SHE HAS SPECIFICALLY ADVANCED WAYS TO ENHANCE THE RESPONSIVENESS OF DEMOCRATIC BODIES TO MINORITY INTERESTS OF ALL TYPES RACIAL RELIGIOUS ETHNIC OR POLITICAL WITHOUT THE USE OF RACIAL QUOTAS IRONICALLY PROF GUINIER HAS EXTENSIVELY ADDRESSED THE VERY PROBLEMS HER CRITICS CHARGE HER WITH IGNORING BUT SHE HAS MOVED BEYOND CRITICISM TO OFFER PROPOSALS FOR CONSTRUCTIVE REFORM CONSIDER THIS LIST OF CONCERNS REGARDING THE CURRENT SAFE MINORITY DISTRICT APPROACH TO THE ACT DISTRICTING PROVIDES NO CLEAR THEORETICAL JUSTIFICATION FOR RESOLVING AND MAY INSTEAD EXACERBATE CONFLICT BETWEEN THE INTERESTS OF COMPETING MINORITY GROUPS IN ORDER TO CREATE MAJORITYBLACK DISTRICTS RACIALLY HOMOGENEOUS WHITE DISTRICTS ARE ALSO CREATED ON THE ASSUMPTION THAT WHITE VOTERS ARE A RACIALLY UNDIFFERENTIATED MASS DISTRICTING DECISIONS MAY SIMPLY REFLECT THE ARBITRARY PREFERENCES OF INCUMBENT POLITICIANS WHO PREFER PACKED SAFE DISTRICTS TO ENSURE THEIR REELECTION THE CURRENT SYSTEM IGNORES THE EXISTENCE OF INTRAGROUP DIFFERENCES AS WELL AS THE IMPORTANCE OF INDIVIDUAL CHOICE IN CHOOSING GROUP AFFILIATION THESE WORDS COME FROM THE PEN OF PROF GUINIER NOT HER CRITICS SURELY THEY BELIE THE NOTION THAT SHE HAS AN UNCRITICAL OR IDEOLOGICAL APPROACH TO IMPLEMENTATION OF THE VOTING RIGHTS ACT MUCH CRITICISM HAS BEEN DIRECTED AT PROF GUINIER'S PROPOSALS FOR PROPORTIONATE INTEREST REPRESENTATION THESE ARE NOT PROPOSALS TO GUARANTEE MINORITY GROUPS FIXED PROPORTIONATE SHARES OF POLITICAL POWER THE PRINCIPLE AT STAKE IS BEST ILLUSTRATED BY PROF GUINIER'S SUGGESTION THAT MORE THOUGHT BE GIVEN TO CUMULATIVE VOTING AS A DIFFERENT APPROACH TO REMEDYING VIOLATIONS OF THE ACT MANY CORPORATIONS USE THIS METHOD TO ELECT BOARDS OF DIRECTORS SIMILARLY SEVERAL LOCAL GOVERNMENTS HAVE VOLUNTARILY ADOPTED THIS APPROACH INITIAL STUDIES SUGGEST IT IS WORKING SMOOTHLY CUMULATIVE VOTING DOES NOT INVOLVE THE RACIALLY CONSCIOUS DRAWING OF SAFE MINORITY DISTRICTS INSTEAD EACH VOTER IS GIVEN AS MANY VOTES TO CAST AS THERE ARE ELECTORAL SEATS TO FILL FOR A FIVEMEMBER CITY COUNCIL FIVE VOTES VOTERS ARE PERMITTED TO DISTRIBUTE THESE VOTES AMONG THE CANDIDATES IN ANY WAY THEY CHOOSE VOTERS WITH STRONG DESIRES TO SEE ONE CANDIDATE ELECTED CAN PLUMP ALL THEIR VOTES FOR THAT PERSON PROF GUINIER ARGUES THAT UNDER CUMULATIVE VOTING AS WITH OTHER REMEDIES UNDER THE ACT MINORITY VOTERS WITH COHESIVE INTERESTS CAN PROTECT THOSE INTERESTS BY CONCENTRATING THEIR VOTES ON PARTICULAR CANDIDATES BUT SHE NOTES THAT THIS SYSTEM GIVES ALL VOTERS NOT JUST ETHNIC OR RACIAL MINORITIES THE OPPORTUNITY TO PROTECT THEIR MOST INTENSE INTERESTS MOREOVER VOTERS VOLUNTARILY DEFINE THEIR OWN INTERESTS AND THE VOTING AFFILIATIONS THAT BEST PROMOTE THEM IN SHORT CUMULATIVE VOTING APPEARS TO BE A WAY OF PURSUING THE GOALS OF THE VOTING RIGHTS ACT WITHIN THE FRAMEWORK OF POLITICAL LIBERALISM CUMULATIVE VOTING HAS COSTS TOO AND WHETHER ON BALANCE IT WOULD IMPROVE ON THE CURRENT SAFE DISTRICTING APPROACH REQUIRES MORE DETAILED STUDY WE DO NOT READ PROF GUINIER AS ARGUING THAT THE ACT MANDATES CUMULATIVE VOTING SHE WRITES NOR DO I ARGUE THAT THESE PROPOSALS ARE STATUTORILY OR CONSTITUTIONALLY REQUIRED PROF GUINIER SHOULD BE CREDITED FOR PUTTING FORWARD FOR DISCUSSION NEW APPROACHES TO DIFFICULT PROBLEMS PROF GUINIER HAS BEEN CRITICAL OF MAJORITY RULE AS HER CRITICS POINT OUT BUT IN MORE SPECIFIC CIRCUMSTANCES THAN THEY ACKNOWLEDGE SHE CHALLENGES LEGISLATIVE GERRYMANDERING OR THE WILLFUL MANIPULATION OF LEGISLATIVE RULES TO SHUT OUT MINORITY REPRESENTATIVES FOR EXAMPLE AS SOON AS ONE MINORITY MEMBER WAS ELECTED TO THE SCHOOL BOARD IN A SMALL TEXAS COUNTY THE BOARD INCREASED THE NUMBER OF VOTES NEEDED TO PUT AN ITEM ON THE AGENDA TO TWO IN RESPONSE TO THESE AND SIMILAR TACTICS PROF GUINIER HAS SUGGESTED POSSIBLE RESPONSES INCLUDING ROTATION IN OFFICE A REQUIREMENT THAT THE RULES NOT BE SUDDENLY CHANGED OR THAT SUPRAMAJORITY VOTES BE REQUIRED IN SOME INSTANCES PROF GUINIER'S RESPONSES HAVE BEEN MISCONSTRUED AS EFFORTS TO ENSURE EQUAL LEGISLATIVE OUTCOMES FOR MINORITIES BUT SHE CLEARLY STATES THAT HER CONCERN IS THE PROCESS BY WHICH LEGISLATION IS ENACTED NOT SPECIFIC SUBSTANTIVE OUTCOMES MOREOVER PROF GUINIER MAKES A PLAUSIBLE CASE THAT CERTAIN CHANGES IN DECISIONMAKING RULES CAN FACILITATE INTERRACIAL COOPERATION AND HEALTHIER DEMOCRATIC POLITICS MOBILE ALA PROVIDES AN EXAMPLE AFTER JUDICIAL FINDINGS THAT THE CITY'S ELECTORAL SYSTEM VIOLATED THE VOTING RIGHTS ACT THE PARTIES REACHED A SETTLEMENT UNDER WHICH SOME LEGISLATION REQUIRES THE AFFIRMATIVE VOTE OF FIVE OF SEVEN CITY COMMISSIONERS WITH THREE BLACK MEMBERS ON THE COMMISSION THE RULE EFFECTIVELY REQUIRES THE SUPPORT OF AT LEAST ONE BLACK REPRESENTATIVE BASED ON REPORTS OF EXPERTS WE HAVE CONSULTED THE SYSTEM SO FAR HAS FOSTERED COMMUNICATION AMONG BLACK AND WHITE GROUPS AND ENHANCED THE EFFECTIVENESS OF THE MOBILE CITY COMMISSION PROF GUINIER ACKNOWLEDGES THAT SHE HAS MADE ONLY AN INITIAL FORAY INTO THESE PROBLEMS THAT HER VIEWS ARE NOT YET COMPLETELY FORMED WE DO NOT AGREE WITH ALL HER SUGGESTIONS NOR DO WE AGREE BETWEEN OURSELVES ON THESE VEXING ISSUES ALL HER WRITING THOUGH HAS BEEN EXPLICITLY MOTIVATED BY A SEARCH FOR CONSENSUSBUILDING STRATEGIES CONDUCIVE TO INTERRACIAL COALITIONS THAT AVOID RACIAL STEREOTYPES OR QUOTAS MESSRS ALEINIKOFF AND PILDES ARE PROFESSORS OF LAW AT THE UNIVERSITY OF MICHIGAN LAW SCHOOL 9305130092 930513 UNOCAL HAS PACT TO SCRAP CARS TO OFFSET POLLUTION LOS ANGELES UNOCAL CORP SAID IT AGREED WITH LOS ANGELESAREA AIR QUALITY REGULATORS TO SCRAP 500 AGING AUTOS IN A FIRSTOFAKIND OFFSET FOR SEEMINGLY UNRELATED INDUSTRIAL POLLUTION IN RETURN FOR TAKING CARS OFF THE ROAD UNOCAL WILL BE EXEMPT FOR THREE YEARS FROM HAVING TO INSTALL VAPOR CONTROL EQUIPMENT AT AN OIL TANKER TERMINAL SUCH SWAPS HAVE BEEN URGED FOR MANY YEARS BY ECONOMISTS AND OTHERS WHO HAVE ARGUED THAT THE REMOVAL OF AGING AND OUTDATED AUTOS FROM THE ROAD MAY BE ONE OF THE CHEAPEST AND EASIEST WAYS TO CUT AIR POLLUTION A SPOKESMAN FOR THE SOUTHERN CALIFORNIA AIR QUALITY MANAGEMENT DISTRICT WHICH SET THE PACT WITH UNOCAL SAID THE AGENCY EXPECTS MANY SUCH ARRANGEMENTS IN THE FUTURE AS LOS ANGELESAREA INDUSTRIES PUSH TO MEET STRINGENT NEW CLEANAIR STANDARDS UNDER AN EMISSIONS TRADING PROGRAM EXPECTED TO BEGIN NEXT YEAR AREA MANUFACTURERS COULD EVEN CRUSH CARS FOR EXCHANGEABLE CREDIT A SPOKESMAN FOR UNOCAL SAID THE COMPANY ESTIMATED THE COST OF VAPOR CONTROL EQUIPMENT OFFSET BY THE CARCRUSHING PROGRAM AT SEVERAL MILLION DOLLARS THE OIL COMPANY COULD PAY AS LITTLE AS 400000 FOR THE SCRAPPING PROGRAM UNDER WHICH THE COMPANY BUYS CARS FROM CITIZENS 9305130090 930513 OTC FOCUS MARKET IS DRAGGED DOWN BY 020 AMID BIG TECHNOLOGY STOCKS' DECLINE BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET WAS DRAGGED DOWN BY DECLINES IN MANY BIG TECHNOLOGY STOCKS THE NASDAQ COMPOSITE INDEX DROPPED 137 OR 020 TO 68169 DECLINING ISSUES EDGED OUT ADVANCERS 1376 TO 1314 ON TOTAL VOLUME OF 2464 MILLION SHARES UP FROM TUESDAY'S 2233 MILLION LAWRENCE KINNEY HEAD OF OTC TRADING AT SOUNDVIEW FINANCIAL GROUP SAID THE NASDAQ MARKET GENERALLY MANAGED TO SHRUG OFF FALLING BOND PRICES THE OTC MARKET ACTED WELL IT'S JUST SOME BIG TECH STOCKS THAT BROUGHT THE INDEX DOWN HE SAID MICROSOFT SLID 1 1/2 TO 86 1/4 SUN MICROSYSTEMS LOST 5/8 TO 25 1/8 AND APPLE COMPUTER FELL 1 1/4 TO 53 1/4 INTEL DROPPED 1 1/2 TO 98 KIDDER PEABODY & CO LOWERED ITS INVESTMENT RATING TO ACCUMULATE FROM BUY THE STOCK WAS ALREADY TRADING WELL BELOW THE YEAR'S PEAK OF 121 1/4 SEVERAL MEDICAL STOCKS ALSO STUMBLED US HEALTHCARE SLIPPED 1 1/4 TO 45 3/4 CHIRON DROPPED 1 1/4 TO 58 1/8 AND GENZYME SANK 1 3/8 TO 39 1/2 BIOTECH AND HEALTHCARE STOCKS CALMED DOWN AFTER RISING MOST OF LAST WEEK SAID GREGORY RILEY A SENIOR OTC TRADER AT FIRST BOSTON CORP THE NASDAQ MARKET HAS BEEN TRADING IN A NARROW RANGE WITH INVESTORS ROTATING AMONG SECTORS THE DAY'S MOST ACTIVE STOCK SPECTRUM INFORMATION TECHNOLOGIES ROSE 1/2 TO 5 1/4 ON 82 MILLION SHARES MORE THAN 14 TIMES NORMAL VOLUME ON TUESDAY AMERICAN TELEPHONE & TELEGRAPH AGREED TO LICENSE SPECTRUM'S TECHNOLOGY FOR TRANSMITTING DATA OVER CELLULAR NETWORKS AT&T ALSO SAID IT MIGHT INVEST MORE THAN 10 MILLION IN DALLASBASED SPECTRUM APPLIED MATERIALS LEAPED 3 TO 50 THE SANTA CLARA CALIF COMPANY SAID LATE TUESDAY AFTERNOON THAT IT EXPECTS TO REPORT RESULTS ABOVE CURRENT ANALYST ESTIMATES OF 38 CENTS TO 42 CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDED MAY 2 THE COMPANY EXPECTS TO POST EARNINGS OF AT LEAST 50 CENTS A SHARE APPLIED MATERIALS WHICH EARNED 26 CENTS A SHARE A YEAR EARLIER IS A MAKER OF SEMICONDUCTOR WAFER MANUFACTURING EQUIPMENT AUSPEX SYSTEMS JUMPED 2 3/8 TO 14 3/8 FROM ITS INITIAL OFFERING PRICE OF 12 AUSPEX OFFERED FIVE MILLION SHARES THROUGH LEAD UNDERWRITER GOLDMAN SACHS & CO THE COMPANY OFFERED 27 MILLION SHARES AND SELLING SHAREHOLDERS OFFERED 23 MILLION THE SANTA CLARA CALIF COMPANY MANUFACTURES A LINE OF UNIX/NFS FILE SERVERS WHICH ARE DESIGNED TO ENHANCE THE PERFORMANCE OF LARGE MULTIVENDOR CLIENT/SERVER NETWORKS NORDSTROM DROPPED 1 1/4 TO 28 3/4 THE APPAREL STORE OPERATOR POSTED DISAPPOINTING EARNINGS OF 14 CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED APRIL 30 DOWN FROM 26 CENTS A YEAR EARLIER SEVERAL ANALYSTS LOWERED THEIR INVESTMENT RATINGS ON THE SEATTLE COMPANY AND CUT EARNINGS ESTIMATES CJ LAWRENCE ANALYST JEFFREY EDELMAN CUT HIS PROFIT FOR NORDSTROM'S SECOND QUARTER ENDING IN JULY TO 45 CENTS A SHARE FROM 54 CENTS COMPARED WITH 51 CENTS IN THE SAME PERIOD A YEAR EARLIER ADVACARE FELL 3/4 TO 2 THE HORSHAM PA COMPANY POSTED A NET LOSS OF 333 MILLION OR 286 A SHARE INCLUDING HEAVY ONETIME CHARGES FOR ITS FISCAL SECOND QUARTER ENDED MARCH 31 WIDENED FROM A LOSS OF 30 CENTS A SHARE A YEAR EARLIER THE COMPANY CITED A 257 MILLION RESTRUCTURING CHARGE AMONG OTHER FACTORS IT ALSO SAID SECONDQUARTER REVENUE WAS HURT BY A LOSS OF CLIENTS TO INHOUSE ACCOUNTING DEPARTMENTS AND COMPETITORS PLUS SOME REDUCTIONS IN FEE LEVELS ADVACARE PROVIDES MEDICAL REIMBURSEMENT MANAGEMENT SERVICES TO HEALTHCARE PROVIDERS SATELLITE TECHNOLOGY MANAGEMENT FELL 1 5/8 TO 7 3/8 THE COSTA MESA CALIF COMPANY SAID IT WAS PRESENTED WITH A FEDERAL COURT ORDER ISSUED UPON REQUEST OF THE US DEPARTMENT OF COMMERCE THE COMPANY SAID THE ORDER SPECIFIED THAT RECORDS DEALING WITH SATELLITE TECHNOLOGY'S EXPORT OF GOODS TO A LIMITED NUMBER OF COUNTRIES WERE AT ISSUE ADDING THAT NO CHARGES HAVE BEEN FILED THE SATELLITE COMMUNICATIONS NETWORK MANUFACTURER SAID IT BELIEVES IT HAS FULLY COMPLIED WITH ALL APPLICABLE EXPORT REGULATIONS IS COOPERATING FULLY WITH AUTHORITIES AND IS CONDUCTING ITS OWN INVESTIGATION OF THE MATTER LAYNE TOPPLED 1 1/8 TO 5 5/8 THE MISSION WOODS KAN COMPANY SAID LATE TUESDAY AFTERNOON THAT IT EXPECTS TO REPORT A SIGNIFICANT LOSS FOR THE FOURTH QUARTER ENDED APRIL 30 BUT THE WELLDRILLING AND REPAIR CONCERN SAID IT STILL EXPECTS TO POST A PROFIT FOR FISCAL 1993 LAYNE BLAMED INCLEMENT WEATHER AND THE PERSISTENTLY WEAK ECONOMY FOR CONTINUED SOFT DEMAND FOR ALL ITS SERVICE LINES IN THE THIRD QUARTER THE COMPANY HAD A LOSS OF FOUR CENTS A SHARE THERE AREN'T ANY COMPARABLE YEARAGO QUARTERLY RESULTS BECAUSE THE COMPANY COMPLETED ITS INITIAL PUBLIC OFFERING IN JULY 1992 LANNET DATA COMMUNICATIONS LTD TUMBLED 2 3/8 TO 15 3/8 THE TEL AVIV ISRAEL COMPANY POSTED FIRSTQUARTER EARNINGS OF FOUR CENTS A SHARE DOWN FROM 32 CENTS A YEAR EARLIER THE COMPANY BLAMED COMPETITIVE MARKETING PRESSURES WHICH COMBINED WITH INCREASED MARKETING AND RESEARCH AND DEVELOPMENT EXPENSES LED TO LOWER EARNINGS LANNET DATA MANUFACTURES LOCAL AREA NETWORK AND DATA COMMUNICATION PRODUCTS 9305130089 930513 BUSINESS BRIEFS FIRST FEDERAL FINANCIAL SERVICES CORP OF WOOSTER OHIO SIGNED A LETTER OF INTENT TO ACQUIRE FIRST FEDERAL SAVINGS BANK OF DOVER OHIO TERMS WEREN'T DISCLOSED PACIFIC NORTHWEST CELLULAR WILL PURCHASE 30 MILLION OF AMERICAN TELEPHONE & TELEGRAPH CO EQUIPMENT TO UPGRADE ITS CELLULAR NETWORK IN MONTANA WYOMING AND NORTH DAKOTA ALAMAR BIOSCIENCES INC SIGNED AGREEMENTS WITH VARIOUS COMPANIES FOR WORLDWIDE DISTRIBUTION AND MARKETING OF ITS BIOTECHNOLOGY TESTING PRODUCTS SILICON VALLEY GROUP INC AND JAPAN'S CANON INC SIGNED A LETTER OF INTENT TO JOINTLY MANUFACTURE SILICON VALLEY'S PHOTOLITHOGRAPHY EQUIPMENT DUN & BRADSTREET CORP ACQUIRED THE SWEDISH COMPANY SOLIDITET MILTOPE CORP RECEIVED A TWOYEAR EXTENSION OF ITS CURRENT CONTRACT WITH THE ARMY TO SUPPLY SPECIALIZED COMPUTERS SOFTWARE AND SERVICES FOR THE TACTICAL COMMAND AND CONTROL SYSTEM UNION PACIFIC CORP ACQUIRED SKYWAY FREIGHT SYSTEMS INC TERMS WEREN'T DISCLOSED 9305130088 930513 WHO'S NEWS EXSEC CHIEF BREEDEN TO JOIN COOPERS FIRM BY CHRISTI HARLAN AND JOHN CONNOR STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON RICHARD BREEDEN FORMER CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION WILL JOIN THE ACCOUNTING FIRM OF COOPERS & LYBRAND AS VICE CHAIRMAN OF ITS DOMESTIC AND FOREIGN FINANCIALSERVICES GROUPS MR BREEDEN A 43YEAROLD LAWYER SAID THE ACCOUNTING FIRM OFFERED AN IRRESISTIBLE OPPORTUNITY FOR HIM TO CONTINUE HIS WORK IN THE GLOBALSECURITIES TERRITORY THAT HE STAKED OUT AT THE SEC COOPERS & LYBRAND PARTNERS ON TUESDAY APPROVED MR BREEDEN'S JOINING THEIR RANKS AND THE FIRM HOPES HE WILL HELP ENSURE THE FIRM'S FIRSTPLACE RANKING AS AN ADVISER IN THE PRIVATIZATION OF FOREIGN COMPANIES THE FIRM'S CHAIRMAN EUGENE FREEDMAN EMPHASIZED THAT MR BREEDEN IS EXPECTED TO BE A WIDERANGING CONSULTANT WE'RE NOT ASKING HIM TO JOIN US AS A LAWYER OR GENERAL COUNSEL MR FREEDMAN SAID MR BREEDEN WHO WAS SEC CHAIRMAN SINCE 1989 WILL BE PRECLUDED FROM CERTAIN WORK WITH THE AGENCY BUT SAID HE DOESN'T EXPECT THAT TO INTERFERE WITH HIS NEW DUTIES HE WILL SHARE THE FINANCIALSERVICES POSTS THERE WITH KENNETH MARSHALL COOPERS & LYBRAND'S COURTSHIP OF MR BREEDEN BEGAN LATE LAST YEAR AND THE RESULTING MARRIAGE AGREED UPON JUST THIS MONTH MARKS THE FIRST TIME A FORMER SEC CHAIRMAN HAS JOINED AN ACCOUNTING FIRM MR BREEDEN SAID IN THE INTERVENING MONTHS MR BREEDEN HAD CONTEMPLATED AT LEAST ONE OTHER JOB OFFER FROM A LARGE NEW YORK LAW FIRM AND HAD SPENT QUITE A LOT OF TIME CHECKING OUT COOPERS & LYBRAND'S ROLE IN SOME WELLKNOWN FINANCIAL BUSTS IN A SETTLEMENT DISCLOSED JUST YESTERDAY BY THE RESOLUTION TRUST CORP THE FIRM AGREED TO PAY THE RTC 45 MILLION TO SETTLE ISSUES ARISING FROM AUDITS OF A NOWINSOLVENT FLORIDA INSURER THAT ALLEGEDLY USED JUNKBOND TRADES WITH MERRILL LYNCH & CO TO MASK ITS FINANCIAL PROBLEMS BOTH MERRILL LYNCH AND COOPERS & LYBRAND DENY ANY WRONGDOING THE RTC SAID SEVERAL NOWINSOLVENT THRIFTS SUFFERED LOSSES IN CONNECTION WITH THEIR PURCHASE OF SECURITIES ISSUED BY TRANSMARK USA INC THE PARENT OF THE INSURER GUARANTEE SECURITY LIFE INSURANCE CO OF JACKSONVILLE FLA THE SENATE PERMANENT INVESTIGATIONS SUBCOMMITTEE IN A RECENT REPORT CRITICIZED COOPERS & LYBRAND FOR CERTIFYING HUNDREDS OF MILLIONS OF DOLLARS OF BOND TRADES BETWEEN MERRILL LYNCH AND THE INSURER DURING SEVERAL YEARS IN THE 1980S GUARANTEE SECURITY SOLD JUNK BONDS TO MERRILL LYNCH AT YEAR END AND REPURCHASED THE BONDS EARLY THE NEXT YEAR AT THE SAME TIME MERRILL LYNCH SOLD TREASURY BONDS TO THE COMPANY AT YEAR END AND REPURCHASED THEM EARLY THE FOLLOWING YEAR OTHER CASES ALREADY WERE WELL KNOWN TO MR BREEDEN IN HIS POSITIONS AS SEC CHAIRMAN AND AS AN EARLY ARCHITECT OF THE SWEEPING FINANCIALINSTITUTIONS REFORM LEGISLATION APPROVED BY PRESIDENT BUSH IN 1989 FOR INSTANCE COOPERS & LYBRAND AGREED IN 1991 TO PAY 20 MILLION TO THE FEDERAL DEPOSIT INSURANCE CORP TO SETTLE ISSUES ARISING FROM ITS AUDIT OF THE FAILED SILVERADO BANKING SAVINGS & LOAN ASSOCIATION IN DENVER LAST YEAR THE FIRM PAID WELL OVER 95 MILLION TO SETTLE SEVERAL LAWSUITS BROUGHT BY INVESTORS IN MINISCRIBE CORP A DEFUNCT LONGMONT COLO SOFTWAREMAKER FREQUENTLY CITED BY MR BREEDEN AS AN EXAMPLE OF CORPORATE CHICANERY AT ITS WORST THE ACCOUNTING FIRM DIDN'T ADMIT WRONGDOING IN EITHER CASE MR BREEDEN SAID HE LOOKED VERY CAREFULLY AT COOPERS & LYBRAND AND IS SATISFIED THAT THE FIRM POSSESSES THE HIGHEST STANDARDS OF INTEGRITY AND PROFESSIONALISM HE STARTS WORK MONDAY 9305130087 930513 INTERNATIONAL THAILAND FIRE SHOWS REGION CUTS CORNERS ON SAFETY TO BOOST PROFITS A WALL STREET JOURNAL NEWS ROUNDUP THE FIRE THAT KILLED AT LEAST 240 WORKERS IN A THAI TOY FACTORY NEAR BANGKOK MONDAY UNDERSCORES THE LAX REGULATIONS AND IN SOME CASES CORRUPTION THAT LEAVE WORKERS IN ASIA'S FASTGROWING ECONOMIES VULNERABLE TO WORKPLACE DISASTERS LABOR LEADERS SAFETY EXPERTS AND OFFICIALS SAY THE DEADLY FIRE MAY HELP TIGHTEN BUILDING CODES AND SAFETY REGULATIONS BUT THAT LASTING PROGRESS IS STILL FAR OFF AS EMPLOYERS THROUGHOUT ASIA FLOUT RULES AND GOVERNMENTS ALLOW ECONOMIC GROWTH TO TAKE PRIORITY OVER WORKER SAFETY ALL THESE DEVELOPING COUNTRIES WANT TO BE LIKE HONG KONG AND THE DRAGONS BUT THE PRICE THEY PAY BECAUSE OF LACK OF PROTECTIVE MEASURES IS TERRIBLY HIGH SAYS APO LEONG CHIEF RESEARCHER FOR THE CONFEDERATION OF TRADE UNIONS HONG KONG'S LARGEST INDEPENDENT UNION THE RAPIDLY EXPANDING ECONOMIES OF HONG KONG SINGAPORE TAIWAN AND SOUTH KOREA HAVE EARNED THEM THE SOBRIQUET ASIAN DRAGONS THE RISING FREQUENCY OF INDUSTRIAL ACCIDENTS AS ASIAN COUNTRIES PURSUE HIGH GROWTH HAS UNNERVED LABOR ACTIVISTS FOR EXAMPLE THE MALAYSIAN TRADES UNION CONGRESS SAYS THE NUMBER OF INDUSTRIAL ACCIDENTS IN THE COUNTRY NEARLY DOUBLED FROM 1985 TO 1990 TO 121104 FROM 61724 WE'RE LOOKING AT AN ALARMING INCREASE IN ACCIDENTS SAYS ZAINAL RAMPAK CONGRESS PRESIDENT THOUGH HE SAYS THE GOVERNMENT IS RESPONDING TO THE PROBLEM WORKERS IN THE THAI FACTORY SAID MONDAY'S BLAZE STARTED WHEN MATERIALS STORED CLOSE TO AN ELECTRICAL TRANSFORMER IGNITED THE FACTORY WHICH MADE STUFFED ANIMALS HAD BEEN ALLOWED TO REMAIN IN OPERATION DESPITE THREE PREVIOUS SMALLER FIRES WITHIN 10 MINUTES WITNESSES SAY THE FOURSTORY BUILDING COLLAPSED IN FLAMES THE THREE EXITS HAD BEEN BLOCKED TO PREVENT PILFERING SURVIVORS SAID AND THERE WERE NO FIRE ESCAPES OR ALARMS LEAVING MANY OF THE 2000 WORKERS MOSTLY YOUNG WOMEN TRAPPED IN THE INFERNO AS OF LATE WEDNESDAY THAI AUTHORITIES HAD COUNTED AT LEAST 240 DEAD HUNDREDS OF OTHER WORKERS WERE HOSPITALIZED AFTER LEAPING FROM THE TOP FLOORS KADER INDUSTRIAL THAILAND CO OWNER OF THE FACTORY SAYS THE PLANT HAD PROPER FIREPREVENTION EQUIPMENT AND EXITS THE COMPANY IS A JOINT VENTURE OWNED 40 BY KADER HOLDINGS CO OF HONG KONG 40 BY A COMPANY WITH LINKS TO THAILAND'S GIANT CHAROEN POKPHAND GROUP AND THE REMAINING 20 BY INVESTORS FROM TAIWAN WHILE THEY SAID THE COMPANY WOULD TAKE CARE OF THE INJURED AND COMPENSATE THE FAMILIES OF THOSE WHO DIED EXECUTIVES AT KADER HOLDINGS IN HONG KONG SOUGHT TO DISTANCE THE COMPANY FROM THE INCIDENT THE WHOLE OPERATION IS RUN BY THE THAI AND TAIWANESE PARTNERS SAID EXECUTIVE DIRECTOR PETER WONG THAI PRIME MINISTER CHUAN LEEKPAI CALLED FOR TOUGH ACTION AGAINST SAFETYLAW VIOLATORS AND THE ENGLISHLANGUAGE DAILY THE NATION EDITORIALIZED THAT IT WAS TIME THAILAND STOPS SELLING LIVES CHEAPLY SAID INDUSTRY MINISTER SANAN KACHORNPRASART THOSE FACTORIES WITHOUT FIRE PREVENTION SYSTEMS WILL BE ORDERED TO INSTALL ONE OR WE WILL SHUT THEM DOWN STILL MOST OBSERVERS EXPECT ONLY A FEW OF THE WORST OFFENDERS TO BE SINGLED OUT FOR A SHORT TIME AND NEW RULES TO APPLY ONLY TO NEW FACTORIES LEAVING THOUSANDS OF STRUCTURES UNTOUCHED LED BY A HOTEL CONSTRUCTION ENGINEER AN HOURLONG TOUR OF SEVERAL OFFICE AND FACTORY BUILDINGS IN BANGKOK'S CENTRAL BUSINESS DISTRICT REVEALED LOCKED OR BLOCKED EXITS IN NEARLY EVERY STRUCTURE THE BUILDINGS OFTEN SUFFERED FROM INSUFFICIENT EMERGENCY LIGHTING DANGEROUS ESCAPE ROUTES POOR OR NONEXISTENT SPRINKLER SYSTEMS OR FIRE HOSES AND WIDESPREAD USE OF UNSAFE BUILDING MATERIALS SIMILAR NEGLIGENCE IS COMMON THROUGHOUT THE REGION WHERE LABOR UNIONS ARE WEAK AND CORRUPTION IS OFTEN ENDEMIC IN MAY 1991 80 YOUNG WOMEN DIED IN A FACTORY BLAZE IN THE BOOM TOWN OF DONGGUAN IN SOUTHERN CHINA'S GUANGDONG PROVINCE AS IN THAILAND THE WORKERS WERE LOCKED ON THE TOP FLOORS OF THE BUILDING WHEN THE FIRE BROKE OUT I THINK A LOT OF FACTORIES IN CHINA AREN'T FOLLOWING FIRE RULES SAYS WILSON LEE PROPRIETOR OF HONG KONG TOY MAKER SILVER MANUFACTURING CO WHICH HAS TWO FACTORIES IN GUANGDONG EMPLOYING NEARLY 3000 WORKERS HE SAYS AUTHORITIES OFTEN LOOK THE OTHER WAY WHEN THEY ENCOUNTER VIOLATIONS WE HAVE TO WATCH OURSELVES HE SAYS MEANWHILE THE THAI DISASTER WILL MAKE INDONESIAN AUTHORITIES INCREASE THEIR EMPHASIS ON SAFETY IN THE WORKPLACE ACCORDING TO PAYAMAN SIMANJUNTAK DIRECTORGENERAL OF INDUSTRIAL RELATIONS AND LABOR STANDARDS IN THE MINISTRY OF MANPOWER NEXT WEEK I'LL ASK MY INSPECTORS TO INTENSIFY THEIR INSPECTIONS HE SAID BUT INDONESIAN LABOR ACTIVISTS CHARGE THAT THE POORLY PAID INSPECTORS OFTEN ACCEPT BRIBES AND COMPANIES AREN'T UNDER GREAT PRESSURE TO CLEAN UP THEIR ACTS ANYWAY MR PAYAMAN SAYS THAT THE FIRST TIME INSPECTORS COME ACROSS FACTORIES THAT HAVE LOCKED THEIR GATES OR EXHIBIT OTHER UNSAFE PRACTICES THE OWNERS GET CAUTIONED NOT PROSECUTED BETTER SAFETY IS PART OF AN EDUCATION PROCESS HE SAID 9305130086 930513 PEPPERAND SALT TO FACE THE WOODS WITHOUT FEAR ARE THEY OFF ON A HUNTING SAFARI OR ANSWERING SOME WILDERNESS CALL WHEN TAKING A TRIP TO THE MALL A SHOT OF ESPRESSO 9305130085 930513 MARKETING & MEDIA HOME SHOPPING CONSULTANT SUES FORMER EXECUTIVE NEW YORK A LAWSUIT FILED BY A HOME SHOPPING NETWORK INC CONSULTANT AGAINST A FORMER COMPANY EXECUTIVE HAS EXPOSED A NEW LEVEL OF VITRIOL IN THE UNFOLDING ALLEGATIONS OF FINANCIAL CHICANERY AT THE TELEVISION RETAILER THE SUIT FILED BY FRANCIS R SANTANGELO AGAINST ALLEN P ALLWEISS HOME SHOPPING'S FORMER GENERAL COUNSEL CHARGES HE DEFAMED MR SANTANGELO THROUGH UNCONSCIONABLE LIES ETHNIC SLURS AND FALSE STATEMENTS THE COMPLAINT CHARGES THAT MR ALLWEISS ACCUSED MR SANTANGELO OF BEING A GANGSTER A MEMBER OF THE MAFIA AND A PART OF THE GAMBINO CRIME FAMILY THE SUIT WHICH SEEKS 10 MILLION IN DAMAGES AND WAS FILED YESTERDAY IN STATE COURT IN HILLSBOROUGH COUNTY FLA SAYS MR ALLWEISS MADE THE COMMENTS TO OTHER HOME SHOPPING EXECUTIVES EMPLOYEES AND THE PRESS FUELED BY DEFENDANT ALLWEISS'S HATRED OF MR SANTANGELO IN PARTICULAR AND OF ITALIAN AMERICANS IN GENERAL MR ALLWEISS HIMSELF SUED THE COMPANY MR SANTANGELO AND OTHERS LAST MONTH AFTER HE WAS FIRED EARLIER THIS YEAR AND EXPLICITLY MENTIONED MR SANTANGELO'S SUPPOSED MOB LINKS MR ALLWEISS'S ATTORNEY ROBERT MERKLE OF TAMPA CALLED MR SANTANGELO'S COMPLAINT LUDICROUS SCANDALOUS AND IMPERTINENT 9305130084 930513 ECONOMY CLINTON TIES ANY NEW TAX REVENUES AND PROGRAM SAVINGS TO CUTTING DEFICIT BY JEFFREY H BIRNBAUM AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRESIDENT CLINTON CAME UP WITH A NEW WAY TO SELL HIS TAXINCREASE AND SPENDINGCUT PROGRAM A PLEDGE TO CREATE A DEFICITREDUCTION TRUST FUND SO ANY NEW TAX REVENUES AND PROGRAM SAVINGS GO TO REDUCE THE BUDGET DEFICIT THE TRUST FUND AS PROPOSED BY THE PRESIDENT IN SPEECHES IN NEW YORK AND WASHINGTON WOULDN'T ALTER HIS ECONOMIC PACKAGE OR CREATE ANY NEW BARRIERS TO GOVERNMENT SPENDING IT WOULD HOWEVER HELP LAWMAKERS PERSUADE THEIR CONSTITUENTS THAT THE TAX INCREASES WILL GO TO REDUCE THE DEFICIT AND NOT TO FINANCE NEW GOVERNMENT SPENDING THIS IS A RESPONSE TO THIS PLEA WE'VE HEARD FROM MEMBERS OF CONGRESS AND AVERAGE CITIZENS THAT I DON'T MIND CONTRIBUTING SOME OR HAVING TO PAY A LITTLE MORE IN TAXES IF I KNEW EVERY SINGLE DOLLAR WOULD BE DEDICATED TO DEFICIT REDUCTION' SAID GENE SPERLING A WHITE HOUSE AIDE THE IDEA ISN'T NEW PRESIDENT BUSH OFFERED A VERSION LAST YEAR SOME CONGRESSIONAL DEMOCRATS HAVE PRESSED THE IDEA THIS YEAR INCLUDING REP CHARLES SCHUMER OF NEW YORK WHO WAS ON HAND FOR THE PRESIDENT'S ANNOUNCEMENT AND SEN BILL BRADLEY OF NEW JERSEY THE POINT SEN BRADLEY SAID ISN'T TO GET INTO THE ARCANIA OF BUDGETING BUT TO BUILD PUBLIC CONFIDENCE THAT THE DEFICIT IS BEING REDUCED MR CLINTON'S TRUST FUND WON'T BIND HIM OR CONGRESS MORE THAN EXISTING LAWS ALREADY DO I DON'T THINK IT AFFECTS ANYTHING SAID ALICE RIVLIN DEPUTY DIRECTOR OF THE WHITE HOUSE BUDGET OFFICE IT'S A DISPLAY DEVICE WHAT WE'RE DOING IS SHOWING SEPARATELY IN THE BUDGET WHAT HAPPENED AS A RESULT OF THE ACTIONS TAKEN THIS WOULD HELP MR CLINTON AVOID A PROBLEM THAT PLAGUED GEORGE BUSH AND CONGRESSIONAL DEMOCRATS WHO NEGOTIATED THE 1990 DEFICITREDUCTION COMPROMISE THAT LAW REDUCED THE DEFICIT FROM WHAT IT WOULD OTHERWISE HAVE BEEN BUT THE ACTUAL DEFICIT DIDN'T FALL AS MUCH AS PROJECTED BECAUSE THE ECONOMY WAS WORSE THAN ANTICIPATED AND BECAUSE OF TECHNICAL CHANGES IN ESTIMATES THE TRUST FUND MS RIVLIN SAID WOULD ALLOW THE WHITE HOUSE TO ILLUSTRATE THE EFFECT OF THIS YEAR'S DEFICITREDUCTION BILL BY COMPARING IT WITH WHAT WOULD OTHERWISE HAVE OCCURRED NO MATTER WHAT ACTUALLY HAPPENED TO THE DEFICIT MR CLINTON SAID HE WANTED TO GUARANTEE THE AMERICAN PEOPLE TWO THINGS NO 1 IS NO TAX INCREASES WITHOUT THE SPENDING CUTS NO 2 IS THAT TAX INCREASES WILL GO TO REDUCE THE DEFICIT BY CREATING A LEGALLY SEPARATE DEFICITREDUCTION TRUST FUND WHICH WILL TELL YOU WHERE YOUR MONEY IS GOING MR CLINTON'S TRUST FUND HAS FEWER TEETH THAN VERSIONS THAT HAVE CIRCULATED ON CAPITOL HILL REP SCHUMER AND REP BILL BREWSTER D OKLA SUGGESTED AN APPROACH IN MARCH THAT WOULD SET SPENDING CAPS TO BLOCK ANY EXPANSION IN FEDERAL BENEFIT PROGRAMS EXEMPTING ONLY MR CLINTON'S HEALTHCARE OVERHAUL PACKAGE AN AIDE TO MR SCHUMER SAID YESTERDAY THAT HIS PROPOSAL HAS EVOLVED AND NO LONGER CALLS FOR SUCH CAPS TAXPAYER CONTRIBUTIONS TO THE DEFICITREDUCTION FUND THAT FORMER PRESIDENT BUSH PROPOSED WOULD HAVE TRIGGERED SPENDING CUTS MR CLINTON'S WOULDN'T REPUBLICANS ON CAPITOL HILL RIDICULED MR CLINTON'S PLAN SEN PETE DOMENICI OF NEW MEXICO RANKING REPUBLICAN ON THE BUDGET COMMITTEE DERIDED IT AS A HOAX A JOKE A GIMMICK CALCULATED TO CONVINCE PEOPLE THAT THEY OUGHT TO BE TAXED AND GLAD OF IT THE PRESIDENT DISPUTED THE GIMMICK CHARGES SAYING THE REAL QUESTION IS WHETHER OUR FRIENDS IN THE REPUBLICAN PARTY ARE GOING TO BE READY TO REVERSE THE HUGE TAX CUTS OF 1981 THAT HAVE CAUSED THE DEBT TO GO FROM 1 TRILLION TO 4 TRILLION MR CLINTON'S DEFICITREDUCTION TRUST FUND CONCEPT MAY HELP WIN PUBLIC SUPPORT FOR HIS PROGRAM AND FEND OFF ROSS PEROT A BIT BUT IT WON'T MAKE THE DEFICIT ANY SMALLER OUR PROBLEM ISN'T ONE OF BOOKKEEPING SAID CAROL COX WAIT OF THE PRIVATE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET OUR PROBLEM IS THAT WE'RE SPENDING MORE THAN WE'RE TAKING IN MR SPERLING SAID THE PRESIDENT'S PROPOSAL WOULD LOCK UP AND THROW AWAY THE KEY ON 378 BILLION OVER FIVE YEARS IN TAX INCREASES ENTITLEMENT CUTS AND INTEREST SAVINGS EXPECTED FROM THE PENDING DEFICITREDUCTION BILL SO THAT MONEY COULDN'T BE SPENT MR CLINTON WOULD HOWEVER RETAIN THE OPTION OF ADMINISTRATIVELY ALTERING PROGRAMS IN WAYS THAT INCREASE THE DEFICIT AS HE HAS ALREADY OR ASKING CONGRESS TO APPROVE EMERGENCY SPENDING 9305130083 930513 TECHNOLOGY & HEALTH FDA PROPOSES REQUIRING LABELS TO SHOW EFFECTIVENESS OF SUNSCREENS TAN LOTIONS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION PROPOSED LABELING RULES FOR SUNSCREENS AND SUNTAN LOTIONS SAYING THE REQUIREMENTS WOULD GIVE CONSUMERS A BETTER IDEA OF THE PRODUCTS' EFFECTIVENESS UNDER THE AGENCY'S PLAN LABELS WOULD HAVE TO INCLUDE LANGUAGE ABOUT POTENTIAL HARM FROM THE SUN AND ABOUT THE PRODUCTS' ABILITY TO PROTECT AGAINST IT TANNING LOTIONS AND CREAMS THAT DON'T CONTAIN SUNSCREEN WOULD HAVE TO WARN THAT THEY DON'T OFFER PROTECTION AGAINST SUNBURN AND SUNSCREENS WOULDN'T BE ALLOWED TO OFFER A HIGHER SUN PROTECTION FACTOR THAN 30 THE FDA CONTENDS THE PRODUCTS WITH HIGHER SPF FACTORS GENERALLY AREN'T NECESSARY AND OFFER LITTLE ADDITIONAL PROTECTION WHILE SEEKING TO IMPROVE CONSUMER INFORMATION THE AGENCY ALSO IS EAGER TO ENCOURAGE USE OF SUNSCREENS ONE STATEMENT THE AGENCY IS PROPOSING TO REQUIRE ON SUNSCREEN READS SUN ALERT THE SUN CAUSES SKIN DAMAGE REGULAR USE OF SUNSCREENS OVER THE YEARS MAY REDUCE THE CHANCE OF SKIN DAMAGE SOME TYPES OF SKIN CANCER AND OTHER HARMFUL EFFECTS DUE TO THE SUN THE LABELING REQUIREMENTS IF THEY BECOME FINAL AFTER A PERIOD FOR PUBLIC COMMENT WOULD REPLACE STANDARDS THAT ORIGINALLY WERE PROPOSED IN 1978 BUT WERE NEVER ENACTED SINCE THEN THE FDA SAID THERE HAVE BEEN CONSIDERABLE ADVANCES IN UNDERSTANDING THE EFFECTS OF THE SUN'S RADIATION WHILE THE NUMBER OF DOCTOR'S OFFICE VISITS FOR SKIN CANCER HAS INCREASED MORE THAN 50 THERE IS OVERWHELMING EVIDENCE THAT OVEREXPOSURE TO RADIATION FROM THE SUN IS A HEALTH HAZARD SAID FDA COMMISSIONER DAVID KESSLER CONSUMERS SHOULD NOT HAVE TO GUESS HOW MUCH PROTECTION IF ANY THEY'LL GET FROM THE SUNSCREEN AND TANNING PRODUCTS ON THE MARKET A SPOKESWOMAN FOR THE AMERICAN ACADEMY OF DERMATOLOGY SAID THAT THE NUMBER OF CASES OF SKIN CANCER HAS BEEN INCREASING ABOUT 34 A YEAR FOR THE PAST FIVE OR SIX YEARS THE PROPOSAL TO LIMIT THE SUN PROTECTION FACTOR OF SUNSCREENS TO 30 IS LIKELY TO DRAW CONSIDERABLE CRITICISM SUN PROTECTION FACTORS PROVIDE AN INDICATION OF HOW LONG PEOPLE WHO APPLY THE SUNSCREEN CAN EXPECT TO STAY IN THE SUN WITHOUT BURNING A PERSON WHO USES A SUNSCREEN WITH AN SPF OF 30 FOR INSTANCE SUPPOSEDLY CAN STAY IN THE SUN WITHOUT GETTING SUNBURNED 30 TIMES AS LONG AS HE COULD WITHOUT A SUNSCREEN SUNSCREENS WITH FACTORS HIGHER THAN 30 CURRENTLY ARE WIDELY AVAILABLE BUT THE FDA SAID THEY AREN'T NECESSARY FOR MOST CONSUMERS SCHERINGPLOUGH CORP SAID THE LIMIT WOULD AFFECT A NUMBER OF ITS SUNSCREEN PRODUCTS INCLUDING ITS WATER BABIES SUNBLOCK LOTION WITH A SUN PROTECTION FACTOR OF 45 WHILE CAUTIONING THAT IT HADN'T YET STUDIED THE FDA PROPOSAL THE COMPANY SAID IT HAS NOTED SOME POINTS WHICH WE BELIEVE TO BE INCONSISTENT WITH THE CURRENT SCIENTIFIC DATA DOUGLAS PETKUS A SPOKESMAN SAID THE COMPANY PLANS TO TAKE A REAL CLOSE LOOK AT THE PROPOSED CAP THE AMERICAN ACADEMY OF DERMATOLOGY SPOKESWOMAN SAID THAT WHILE MOST PEOPLE ARE ADEQUATELY PROTECTED WITH A FACTOR OF 30 SOME FAIRSKINNED PEOPLE MIGHT STILL WANT TO USE HIGHER NUMBERS THE ACADEMY RECOMMENDS THAT EVERYONE USE A SUN PROTECTION FACTOR OF AT LEAST 15 THE FDA'S LABELS WOULD REQUIRE PRODUCTS FOR CHILDREN BETWEEN SIX MONTHS AND TWO YEARS OLD TO PROVIDE A SUN PROTECTION FACTOR OF AT LEAST FOUR PARENTS SHOULD CONSULT THEIR PHYSICIANS BEFORE USING SUNSCREEN ON KIDS UNDER SIX MONTHS THE AGENCY SAID ANY PRODUCT THAT REFERS TO A SUN PROTECTION FACTOR OR MAKES A PROTECTION CLAIM WOULD BE CONSIDERED A DRUG AND GENERALLY WOULD HAVE TO CONFORM TO THE PROPOSED STANDARDS TO BE CONSIDERED SAFE AND EFFECTIVE THE FDA SAID THAT ABOUT 20 ACTIVE INGREDIENTS SOME OF WHICH ALREADY ARE BEING USED ARE BEING PROPOSED AS SAFE AND EFFECTIVE FOR USE IN THE SUNSCREEN PRODUCTS THE PROPOSAL ALSO WOULD COVER COSMETIC PRODUCTS SUCH AS LIPSTICKS AND SHAMPOOS THAT MAKE SUNSCREEN CLAIMS BUT IT WOULD SET DIFFERENT LABEL REQUIREMENTS FOR PRODUCTS INTENDED FOR EVERYDAY USE AS OPPOSED TO ONES DESIGNED TO PROVIDE LONGTERM PROTECTION FROM THE SUN THE PROPOSAL WHICH APPEARED IN YESTERDAY'S FEDERAL REGISTER ALSO PROPOSES STANDARDS FOR CLAIMS THAT PRODUCTS ARE WATERPROOF OR WATER RESISTANT AND MAKES CLEAR THAT CERTAIN PRODUCTS THAT PROMOTE TANNING IN THE ABSENCE OF SUNLIGHT WILL BE ALLOWED 9305130082 930513 TRAVEL USAIR CUTS FARES IN THE NORTHEAST TO FEND OFF UPSTARTS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL USAIR IS GOING AFTER PASSENGERS IN THE NORTHEAST WITH A VENGEANCE IN MARKETS LESS THAN 750 MILES APART THE AIRLINE HAS CUT LEISURE FARES BY AN AVERAGE OF 28 AND ADDED SPECIAL DISCOUNTS FOR WEEKEND TRAVEL AND FOR CHILDREN AND FLIERS AGE 65 AND OLDER ONE OF USAIR'S TWO MAJOR COMPETITORS IN THOSE MARKETS UAL CORP'S UNITED AIRLINES SAID IT WOULD MATCH USAIR ON NONSTOP ROUTES THE OTHER CONTINENTAL AIRLINES SAID IT WAS STUDYING THE INITIATIVE USAIR SAYS THE MOVE ISN'T A ONETIME SALE BUT A RESTRUCTURING OF FARES AND THE INITIATIVE REFLECTS THE AIRLINE'S NEED TO LURE NONBUSINESS TRAVELERS FROM CARS BUSES AND TRAINS ON RELATIVELY SHORT TRIPS LEISURE TRAVELERS ARE NOT FLYING AND WE FEEL THESE FARES WILL GROW THE MARKET SAYS TREY URBAHN USAIR'S DIRECTOR OF PRICING DEVELOPMENT BUT USAIR'S MOVE ALSO REFLECTS ITS DISMAL EXPERIENCE AGAINST LOWCOST CARRIERS IN OTHER PARTS OF THE NATION AND THE ENCROACHING THREAT OF NICHE CARRIERS IN THE NORTHEAST WHERE USAIR HAS A DOMINANT POSITION USAIR AND OTHER MAJOR CARRIERS INCLUDING UNITED AIRLINES AND AMR CORP'S AMERICAN AIRLINES LOST SIGNIFICANT MARKET SHARE IN CALIFORNIA AFTER SOUTHWEST AIRLINES EXPANDED INTO THAT STATE WITH ITS LOWFARE NOFRILLS SERVICE SOUTHWEST DOESN'T FLY FARTHER EAST THAN CLEVELAND SO THE NORTHEAST HAS BEEN RELATIVELY INSULATED FROM AGGRESSIVE LOWFARE ALTERNATIVES BUT ALL THAT'S CHANGING NOW NICHE CARRIERS LIKE KIWI INTERNATIONAL AIR LINES AND SKYBUS ARE SERVING NEWARK NJ AND EXPANDING AND WHILE THEY AND OTHERS ARE NOT YET COMPETING HEAD TO HEAD WITH USAIR IN MOST NORTHEASTERN MARKETS USAIR'S MOVE IS SEEN AS A PREEMPTIVE STRIKE AGAINST LOWFARE STARTUPS THEY SEE THESE LITTLE AIRLINES AND THEY DON'T WANT TO SEE WHAT HAPPENED IN CALIFORNIA SAYS TOM PARSONS EDITOR OF BEST FARES AN INDUSTRY NEWSLETTER THEY'RE THE NO 1 CARRIER IN THE NORTHEAST CORRIDOR AND THEY WANT TO BE THE PRICE LEADER USAIR A UNIT OF USAIR GROUP INC IN ARLINGTON VA SAYS IT WOULD HAVE INTRODUCED ITS NORTHEASTERN FARES REGARDLESS OF ITS COMPETITORS BECAUSE IT BELIEVES THEY WILL STIMULATE NEW TRAFFIC THE SAVINGS ON SOME ROUTES ARE SIGNIFICANT USAIR IS CUTTING ITS ROUNDTRIP ADVANCEPURCHASE FARES BETWEEN PHILADELPHIA AND PITTSBURGH TO 158 FROM 292 OR 118 FOR CHILDREN AND FLIERS 65 AND OLDER OTHER RESTRICTIONS SUCH AS LIMITED NUMBERS OF SEATS AND SATURDAY NIGHTSTAY REQUIREMENTS APPLY THE NEW FARES AFFECT ALL USAIR JET AND MOST USAIR EXPRESS COMMUTER FLIGHTS FROM PITTSBURGH CHARLOTTE NC BOSTON PHILADELPHIA NEW YORK'S LAGUARDIA AIRPORT WASHINGTON BALTIMORE AND HARTFORD CONN TO CITIES LESS THAN 750 MILES AWAY USAIR ALSO CREATED A NEW BUSINESS FARE THAT CUTS AVERAGE FULLCOACH FARES BY 6 NO SATURDAY NIGHT STAY IS REQUIRED BUT THERE IS ONE HITCH TICKETS MUST BE PURCHASED SEVEN DAYS IN ADVANCE USAIR ESTIMATES THAT HALF OF ITS BUSINESS TRAVELERS WILL BE ABLE TO USE THIS FARE USAIR INTRODUCED SPECIAL 49 ONEWAY FARES IN APRIL FOR FOUR NORTHEASTERN MARKETS INCLUDING BOSTON AND BUFFALO NY THAT APPLIED TO CHILDREN ACCOMPANIED BY AN ADULT YOUTH BETWEEN 12 AND 21 FLIERS 65 AND OLDER AND ON WEEKENDS ADULTS THAT PROMOTION HAS NOW BEEN EXTENDED TO ALL NORTHEASTERN MARKETS SERVED BY USAIR TRAVEL AGENTS SAY THE LOW FARES CREATED HUGE DEMAND BUT CAPACITY CONTROLS PREVENTED MANY PEOPLE FROM TRAVELING 9305130081 930513 QUARTERLY NET AT FEDERATED WALMART RISES WOOLWORTH AND NORDSTROM POST SHARP PROFIT DROP LOSS AT CALDOR NARROWS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL FIVE MAJOR RETAILERS REPORTED MIXED FISCAL FIRSTQUARTER RESULTS AS POOR WEATHER AND WEAK CONSUMER CONFIDENCE HURT SOME COMPANIES FEDERATED DEPARTMENT STORES INC POSTED A 54 JUMP IN EARNINGS WHILE WALMART STORE'S INC NET INCOME ROSE 16 WOOLWORTH CORP'S EARNINGS PLUNGED 94 FROM A YEAR EARLIER NORDSTROM INC PROFIT TUMBLED 47 WHILE CALDOR CORP NARROWED ITS LOSS THE NEW YORKBASED RETAILER REPORTED DISAPPOINTING EARNINGS BECAUSE OF WEAK ECONOMIC CONDITIONS LOW CONSUMER CONFIDENCE IN ITS PRINCIPAL MARKETS AND INCREASED MARKDOWNS THE COMPANY NOTED HOWEVER THAT THE RESULT REPRESENTS A SMALL PORTION OF ANNUAL EARNINGS SALES ROSE 19 TO 214 BILLION FROM 21 BILLION SEPARATELY IN ITS NEW 1992 ANNUAL REPORT THE COMPANY SPELLED OUT AN AMBITIOUS EXPANSION PROGRAM THIS DECADE PARTICULARLY IN ITS ATHLETIC FOOTWEAR AND APPAREL BUSINESS WOOLWORTH SAID IT PLANS TO SPEND 390 MILLION IN 1993 FOR EXPANDING STORES DEVELOPING NEW STORE FORMATS AND PROVIDING RELATED TECHNOLOGICAL SUPPORT A 19 BOOST FROM THE 327 MILLION SPENT IN 1992 OPERATING PROFIT FOR THE FIRST QUARTER ENDED MAY 1 DROPPED TO 26 MILLION FROM 59 MILLION A YEAR EARLIER SPECIALTYSTORE OPERATING PROFIT FELL TO 34 MILLION FROM 46 MILLION WHILE GENERAL MERCHANDISE OPERATIONS POSTED AN OPERATING LOSS OF 8 MILLION COMPARED WITH AN OPERATING PROFIT OF 13 MILLION ALTHOUGH SALES GROWTH DROPPED BELOW PLAN AND OPERATING COSTS ROSE BECAUSE OF FASTER NEWSTORE OPENINGS WALMART'S REVENUE IN THE QUARTER ENDED APRIL 30 ROSE ALMOST 20 TO 1407 BILLION FROM 1175 BILLION THAT INCLUDED 1392 BILLION OF SALES UP FROM 1165 BILLION A YEAR EARLIER THE COUNTRY'S LARGEST RETAILER HAD HIGHER GROSS MARGINS FOR THE QUARTER ANALYSTS CITED SEVERAL REASONS THE COMPANY INCREASED THE PROPORTION OF FRESH PRODUCE IN ITS SAM'S CLUB WAREHOUSE STORES HIGHER TOBACCO PRICES BOOSTED MARGINS AT ITS MCLANE & WESTERN DISTRIBUTION SUBSIDIARY AND THE COLLAPSE OF A DISCOUNT PHARMACYCHAIN COMPETITOR PHARMOR REDUCED PRESSURE ON PRICES FOR PHARMACY AND PERSONAL CARE ITEMS WALMART BASED IN BENTONVILLE ARK ALSO SAID IT REDUCED SHRINKAGE OR LOSSES FROM THEFT BY EMPLOYEES SALES CLIMBED LARGELY FROM THE GROWTH OF NEW STORES SETTING ASIDE THE LEAP DAY THAT MADE THE 1992 QUARTER A DAY LONGER SALES WOULD HAVE BEEN UP 22 THE COMPANY SAID AT THE TROUBLED SAM'S CLUBS WHICH ACCOUNT FOR SLIGHTLY MORE THAN A FIFTH OF OVERALL SALES STORES OPEN A YEAR OR MORE SAW SALES SLIDE 3 THE COMPANY SAID GROWING COMPETITION HAS LED TO SLOWER GROWTH AND CONSOLIDATION IN THE WHOLE WAREHOUSECLUB RETAIL SEGMENT OVERALL SALES AT WALMART FOR STORES OPEN AT LEAST A YEAR GREW 3 OR 5 IF THE 1992 LEAP DAY IS EXCLUDED WHILE THAT'S BELOW THE COMPANY'S PROJECTED 7 TO 8 SAMESTORE SALES GROWTH FOR THE YEAR THE QUARTER'S RESULTS WERE DEPRESSED BY A BLIZZARDBLASTED MARCH AND MOST ANALYSTS SAID THEY EXPECT WALMART TO MEET ITS PROJECTIONS IN THE QUARTER THE COMPANY OPENED 34 NEW WALMART STORES AND 21 SAM'S CLUBS AND EXPANDED AND RELOCATED 26 EXISTING STORES AND CLUBS TO ADD MORE THAN 85 MILLION SQUARE FEET OF RETAIL STORE SPACE WALMART STOCK WAS QUOTED AT 27 UP 1 IN LATE BIG BOARD TRADING YESTERDAY THE CINCINNATIBASED DEPARTMENT STORE RETAILER SAID A MODERATELY GOOD FIRST QUARTER WAS IN LINE WITH PROFIT EXPECTATIONS ALTHOUGH POOR WEATHER CONDITIONS CONSUMER CONFIDENCE AND THE PROSPECT OF NEW TAXES HAD ADVERSE EFFECTS ON SALES SALES EDGED UP TO 159 BILLION FROM 157 BILLION THE PREVIOUS YEAR'S OPERATIONS BENEFITED FROM A ONETIME STRATEGY TO CLEAR OLD INVENTORY AND AN OVERALL PICKUP IN GENERAL MERCHANDISE SALES FOR THE QUARTER ENDED MAY 1 FEDERATED'S EARNINGS INCLUDED A 35 MILLION CHARGE FOR EARLY EXTINGUISHMENT OF DEBT THE COMPANY HAD ABOUT 126 MILLION SHARES OUTSTANDING IN THE 1993 QUARTER COMPARED WITH ABOUT 80 MILLION SHARES A YEAR EARLIER THE COMPANY ALSO SAID IT TOOK ADDITIONAL MARKDOWNS TO KEEP INSTORE INVENTORIES FRESH DESPITE SLUGGISH SALES ESPECIALLY IN APPAREL THE COMPANY SAID IT WAS CONTINUING TO VIEW THE REMAINDER OF 1993 WITH CAUTION REFLECTING CONSUMER UNCERTAINTIES ABOUT THE ECONOMY AND THE IMPACT OF FUTURE TAX AND HEALTHCARE FUNDING PROPOSALS COMING FROM WASHINGTON SHARES OF FEDERATED ROSE 8750 CENTS YESTERDAY TO CLOSE AT 2125 IN COMPOSITE TRADING ON THE BIG BOARD THE NORWALK CONN RETAILER REPORTED LOWERTHANEXPECTED EARNINGS FOR ITS QUARTER ENDED MAY 1 MAINLY DUE TO POOR WEATHER CONDITIONS IN FEBRUARY AND MARCH THE COMPANY'S SHARES TUMBLED 225 TO CLOSE AT 3275 IN COMPOSITE BIG BOARD TRADING YESTERDAY THE OPERATOR OF 140 DISCOUNT STORES ON THE EAST COAST SAID THE NUMBER OF SHARES OUTSTANDING INCREASED IN THE 1993 FIRST QUARTER AS A 18MILLIONSHARE EQUITY OFFERING WAS COMPLETED THE 1992 FIRSTQUARTER RESULTS WERE RESTATED TO REFLECT THE ADOPTION OF A NEW ACCOUNTING RULE FOR INCOME TAXES COMPARABLESTORE SALES RESPONDED AS WEATHER IMPROVED WITH APRIL COMPARABLE SALES INCREASING 7 CALDOR SAID IT ADDED THAT ITS SOFTLINE APPAREL BUSINESS PERFORMED WELL AND SPORTING GOODS REBOUNDED LATE IN THE QUARTER AS THE WEATHER NORMALIZED COMPARABLESTORE SALES ROSE 33 FOR THE QUARTER THE COMPANY ALSO SAID IT PLANS TO OPEN TWO OR THREE NEW STORES IN SYRACUSE NY DURING THE NEXT 12 MONTHS AND ADDITIONAL STORES IN NEW AND EXISTING MARKETS INCLUDING BETHLEHEM PA IN 1994 AND WASHINGTON DC AND NEW YORK CITY LATER THIS YEAR THE SEATTLEBASED RETAILER CITED DISAPPOINTING SALES TRENDS SO FAR THIS YEAR SALES IN THE QUARTER ENDED APRIL 30 ROSE 48 TO 6956 MILLION FROM 6638 MILLION BUT FOLLOWED MUCH HEALTHIER SALES INCREASES RECORDED IN THE LATTER PART OF 1992 NORDSTROM NOTED THAT ITS FIRSTQUARTER RESULTS HISTORICALLY HAVE BEEN THE MOST VOLATILE THE COMPANY SAID IT EXPERIENCED BETTER RESULTS AS THE FIRST PERIOD PROGRESSED AND ADDED THAT IT'S CONTINUING TO MAKE ADJUSTMENTS BASED ON THE PRESENT RETAIL ENVIRONMENT THE COMPANY'S SHARES FELL 125 TO CLOSE AT 2875 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MERRILL LYNCH RESEARCH ANALYST DANIEL D BARRY SAID SALES IN CALIFORNIA ALSO REMAINED SLUGGISH WITH THE SECOND RODNEY KING TRIAL AGGRAVATING A POOR LOS ANGELES ECONOMY ACCORDING TO DOW JONES NEWS SERVICE HE NOTED THAT ABOUT 60 OF NORDSTROM'S TOTAL SALES CAME FROM CALIFORNIA 9305130080 930513 LEISURE & ARTS CRITIQUE WHY PARIS STILL ISN'T AN ART CITY BY MICHAEL DUCKWORTH PARIS WHY AFTER 12 YEARS OF LAVISH SPENDING ON CULTURE IS FRANCE STILL IGNORED IN THE REALM OF CONTEMPORARY ART BEFORE BEING OUSTED LAST MONTH CULTURE MINISTER JACK LANG HAD SINCE 1981 RADICALLY TRANSFORMED FRANCE'S CULTURAL LANDSCAPE AND MADE THE ARTS A POTENT POLITICAL FORCE BUT DESPITE A STATESPONSORED CULTURE TROUGH THAT IS NOW 1 OF THE NATIONAL BUDGET MANY IN THE PARISIAN ART WORLD STILL BEMOAN A LACK OF CREATIVE INFRASTRUCTURE FOR LIVING ARTISTS MR LANG'S PUSH TO MAKE PARIS THE CULTURAL CAPITAL OF EUROPE DIDN'T SPARK A STAMPEDE OF INTERNATIONAL GALLERIES AND ARTISTS INTO PARIS IN RECENT YEARS THEY SAY AND THE SOCIALISTS' SPENDING SPREE DIDN'T DO MUCH TO RESTORE ITS PRE1945 STATURE AS THE WORLD'S PREMIER MAGNET FOR ARTISTIC TALENT PARIS IS NOT AN ART CITY SAYS ALEXANDRA MIDAL ASSISTANT DIRECTOR OF RUDIGER SCHOTTLE GALLERY COLOGNE HAS 100 MORE IN TERMS OF ART AND ARTISTS WHEN NEW YORK STARTED LOSING IMPORTANCE IN THE WORLD'S CULTURAL SYSTEM THE FRENCH WANTED TO BRING PARIS BACK TO THE CENTER BUT IT DIDN'T WORK BECAUSE THE INFRASTRUCTURE DIDN'T SUFFICIENTLY SUPPORT FRENCH ARTISTS THE CITY BRIEFLY SUCCEEDED IN ATTRACTING A GROUP OF FOREIGN ARTISTS WHEN THE EAST BLOC DISAPPEARED ACCORDING TO RAMON TIO BELLIDO ARTISTIC DIRECTOR OF HOTEL DES ARTS A STATERUN EXHIBITION SPACE FOR CONTEMPORARY ART IT WAS THE FASHION FOR ABOUT THREE MONTHS BUT AS FAR AS I KNOW THEY'VE ALL GONE BACK TO THEIR COUNTRIES THERE WAS NOTHING HERE FOR THEM FRANCE'S INABILITY TO BRING IN AND HOLD ON TO INTERNATIONAL ARTISTS AND ITS PARALLEL INABILITY TO NURTURE ITS HOMEGROWN TALENT IS PARTICULARLY DISMAYING CONSIDERING THE HIGH PROFILE THE ARTS ATTAINED DURING MR LANG'S REIGN THE SCANDALPLAGUED SOCIALIST PARTY LED BY PRESIDENT FRANCOIS MITTERRAND CAPTURED LESS THAN 10 OF THE PARLIAMENTARY SEATS IN THE RECENT NATIONAL ELECTIONS YET THE CHARISMATIC MR LANG REMAINS OVERWHELMINGLY POPULAR HAVING INVIGORATED THE FASHION INDUSTRY REVIVED FILM PRODUCTION AND RENOVATED OR BUILT FROM SCRATCH MORE THAN 400 MUSEUMS JACK LANG MADE CULTURE FASHIONABLE SAYS GALLERY OWNER YVON LAMBERT THE RIGHT HAD NEVER BEEN INTERESTED IN CULTURE EXCEPT IN A VERY CAVALIER WAY BUT EVEN SOME WHO BENEFITED FROM MR LANG'S LARGESSE COMPLAIN THAT HE AND HIS BOSS MR MITTERRAND CARED MORE FOR PUBLICITY STUNTS THAN FOR BUILDING AN ARTISTFRIENDLY SYSTEM THOUGH GOVERNMENT SPENDING ON CONTEMPORARY ART HAS RISEN TO NEARLY 100 MILLION THIS YEAR FROM 115 MILLION IN 1981 THE FIELD REMAINS AN UGLY STEPCHILD TO MUSIC AND THEATER THEY SAY OTHER FINGERS POINT TO ONE OF THE SOCIALISTS' SUPPOSEDLY CROWNING ACHIEVEMENTS THE DECENTRALIZATION OF PUBLIC COMMISSIONS AND OTHER FUNDING DECISIONS SOON AFTER TAKING OFFICE MR LANG CREATED AND ENDOWED REGIONAL FUNDS THAT ALLOWED PROVINCES TO ENTER THE GLOBAL MARKET FOR CONTEMPORARY ART SPAWNING NOTABLE COLLECTIONS IN REGIONAL CAPITALS SUCH AS BORDEAUX GRENOBLE AND NANTES NEARLY 50 OF THE MINISTRY OF CULTURE'S BUDGET NOW GOES DIRECTLY TO PROVINCES FOR THEIR DISCRETIONARY USE UP FROM 18 IN 1981 UNFORTUNATELY FOR FRENCH ARTISTS THE NEWLY EMPOWERED REGIONAL ART BUREAUCRATS TOOK MOST OF THEIR BUSINESS OVERSEAS EAGER TO CLOSE THE GAP THAT HAD BEEN CREATED BY DECADES OF HOSTILITY IN FRANCE TO POP ART AND OTHER INTERNATIONAL PHENOMENA IRONICALLY THIS OCCURRED JUST AS NATIONALISTIC BUYING ELSEWHERE IN EUROPE HELPED DRAW THE ATTENTION OF THE WORLD ART MARKET TO EUROPEAN ARTISTS BUT FRENCH INSTITUTIONS AND COLLECTORS REMAINED REMARKABLY NONNATIONALISTIC BUYING BIGNAME CONTEMPORARY ART FROM EVERYWHERE BUT FRANCE THE FACT THAT FRENCH COLLECTORS STICK TO BIG NAMES LIKE ANDY WARHOL AND JASPER JOHNS WHEN THEY DO BUY CONTEMPORARY SAYS RUDIGER SCHOTTLE'S MS MIDAL POINTS TO A DEEPER AVERSION TO THINGS CONTEMPORARY IN THE FRENCH MENTALITY THE FRENCH ARE COMPLETELY ROMANTIC SHE SAYS THEY'RE MUCH MORE INVOLVED IN WHAT WAS GOING ON 100 YEARS AGO THAN IN WHAT'S HAPPENING NOW ARTISTS FLOCKED TO PARIS IN THE EARLY 20TH CENTURY LARGELY BECAUSE FRANCE AT THAT TIME REPRESENTED FREEDOM FROM THE WEIGHT OF TRADITION ADDS MR TIO BELLIDO MUCH OF EUROPE WAS ALMOST FEUDAL BY COMPARISON BUT NOW FRANCE HAS BEEN OVERTAKEN AND APPEARS IN MOST SOCIAL ASPECTS MORE COBWEBBED THAN ANY OF ITS NEIGHBORS A FUNDAMENTAL CRITICISM OF THE SOCIALIST BINGE CAN THUS BE PIECED TOGETHER IN OPENING THE FLOODGATES TO BUY BACK THE OL' MAGIC THEY CHOSE A TOPDOWN APPROACH DECENTRALIZATION EFFORTS NOTWITHSTANDING ROOTED IN THE STATEWORSHIPPING POLICIES OF THE PAST PAYING TOO MUCH HOMAGE TO EXISTING TEMPLES AND NOT ENOUGH MIND TO FRANCE'S WEAK NETWORK OF COLLECTORS CRITICS AND ARTISTS GIVEN THAT THE GOVERNMENT'S REGIONAL FUNDS ACCOUNT FOR AS MUCH AS 70 OF GALLERY SALES BY ONE ESTIMATE MANY FEAR THAT EVEN THE LIMITED MOMENTUM GENERATED BY THE SOCIALISTS WILL VANISH ONCE THE GOVERNMENTFUNDING PIPELINE FALTERS THE WAY THE CONSERVATIVES ARE ACTING HOWEVER IT MAY NEVER FALTER MAYOR JACQUES CHIRAC OF PARIS MR MITTERRAND'S MOST LIKELY CONSERVATIVE OPPONENT IN THE NEXT PRESIDENTIAL ELECTION HAS CONSPICUOUSLY STEPPED UP THE CITY'S OWN CULTURAL SPENDING IN RECENT YEARS TO KEEP PACE WITH THE STATE JUGGERNAUT WHAT THE SOCIALISTS HAVE DONE FOR CULTURE WAS VERY GOOD AT A CERTAIN MOMENT CONCEDES FRANCOISE DE PANAFIEU MR CHIRAC'S CULTURAL ADVISER BUT AFTER 10 YEARS PEOPLE WANT SOMETHING ELSE OUR NATIONAL INSTITUTIONS ARE NOT STRONG ANYMORE THE CENTRE POMPIDOU FRANCE'S MAJOR CONTEMPORARYART FACILITY DOES NOT HAVE THE PLACE THAT IT SHOULD JACQUES TOUBON THE CAREER POLITICIAN WHO HAS REPLACED MR LANG A FORMER THEATER DIRECTOR HAS YET TO PROCLAIM A CONSERVATIVE MANIFESTO ON CULTURE BUT AS MS DE PANAFIEU'S ELECTIONMINDED COMMENTS SUGGEST THE RIGHT HAS INDEED TAKEN UP CULTURE AS A POTENT POLITICAL WEAPON THAT IN ITSELF RATHER THAN A GENUINE RENAISSANCE IN CONTEMPORARY ART MAY BE MR LANG'S MOST IMPORTANT LEGACY MR DUCKWORTH IS AN EDITOR ON THE JOURNAL'S OVERSEAS COPY DESK 9305130079 930513 MARKETING & MEDIA TIME WARNER SEEKS WHOLESOME IMAGE WITH FAMILY ENTERTAINMENT MOVIES BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC WHICH GRABBED ATTENTION FOR RAPPER ICET'S COP KILLER RECORD AND MADONNA'S SEX BOOK IS NOW LOOKING TO BOOST ITS IMAGE AS A FAMILY ENTERTAINMENT COMPANY FOR STARTERS THE COMPANY'S WARNER BROS STUDIO SAID IT WILL RELEASE A SERIES OF MOVIES WITH WHOLESOME THEMES MEANT TO APPEAL TO FAMILIES IN AN INTERVIEW ROBERT A DALY WARNER BROS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND TERRY SEMEL ITS PRESIDENT AND CHIEF OPERATING OFFICER SAID THE FIRST RELEASE UNDER A NEW FAMILY ENTERTAINMENT LOGO WILL BE DENNIS THE MENACE ON JUNE 25 FOUR ADDITIONAL FAMILY ENTERTAINMENT FLICKS ARE SCHEDULED FOR RELEASE BY THE END OF THE YEAR THE MOVE SEEMS SURE TO INTENSIFY WARNER'S ALREADY FIERCE RIVALRY WITH WALT DISNEY CO ITS PRIMARY COMPETITOR IN THE FILMED ENTERTAINMENT BUSINESS DISNEY IS SO STRONGLY IDENTIFIED WITH FAMILY ENTERTAINMENT PARTICULARLY THROUGH ITS ANIMATED MOVIES SUCH AS ALADDIN THAT IT DISTRIBUTES FILMS AIMED AT ADULT AUDIENCES THROUGH TWO SEPARATE UNITS TOUCHSTONE PICTURES AND HOLLYWOOD PICTURES DESPITE TIME WARNER'S STATED PLANS TO DEVELOP SYNERGY BETWEEN ITS UNITS THE EFFORT TO ESTABLISH A FAMILY LABEL AT TIME WARNER WILL ONLY INVOLVE THE HOLLYWOOD STUDIO AS PART OF THE EFFORT MESSRS DALY AND SEMEL SAID THE STUDIO'S MUSIC ARM WILL LAUNCH A SEPARATE LABEL WARNER FAMILY ENTERTAINMENT TO PRODUCE MUSIC FEATURING WARNER'S LOONEY TOONS CARTOON STARS BUGS BUNNY DAFFY DUCK AND PORKY PIG ALBUMS FEATURING THE THREE WILL BE RELEASED IN THE FOURTH QUARTER MR DALY SAID IN ADDITION THE FAMILY ENTERTAINMENT LOGO WILL APPEAR ON CERTAIN HOME VIDEOS CONSUMER PRODUCTS TELEVISION CARTOON SERIES PRODUCED BY THE STUDIO INTERACTIVE MEDIA AND THEME PARKS THE TWO EXECUTIVES SAID THE NEW LOGO WHICH WILL APPEAR AT THE OPENING OF FAMILYORIENTED MOVIES AND VIDEOS IS MADE UP OF THE FAMILIAR WARNER BROS CREST WITH A LOOP SAYING FAMILY ENTERTAINMENT LEANING AGAINST THE CREST MUNCHING ON A CARROT WILL BE NONE OTHER THAN THE TIME WARNER STAR WHO APPARENTLY MOST EPITOMIZES FAMILYSUITABLE ENTERTAINMENT BUGS BUNNY WE WANT THE FAMILY TO BECOME ACCUSTOMED TO EASILY RECOGNIZING A FILM THAT IS SUITABLE FOR THE WHOLE FAMILY SAID MR DALY THE LOGO IS THE FINISHING TOUCH TIME WARNER'S ATTEMPT TO MARKET ITS ENTERTAINMENT OFFERINGS MORE DIRECTLY TO THE FAMILY AUDIENCE COMES AFTER A YEAR IN WHICH SOME OF ITS PRODUCTS IGNITED FIRESTORMS BECAUSE OF THEIR ANTIFAMILY THEMES FOR EXAMPLE LAST YEAR THENVICE PRESIDENT DAN QUAYLE CAUSED A BROUHAHA WHEN HE CRITICIZED A SEGMENT OF THE TIME WARNERPRODUCED SITCOM MURPHY BROWN IN WHICH THE LEAD CHARACTER BORE A CHILD OUT OF WEDLOCK MOREOVER FOR MUCH OF LAST SUMMER TIME WARNER CAME UNDER BLISTERING CRITICISM BY THE NATION'S LAW ENFORCEMENT COMMUNITY OVER ITS DECISION TO DISTRIBUTE FORMER WARNER RAPPER ICET'S COP KILLER SONG WHICH CRITICS CONTENDED ADVOCATED POLICE ASSASSINATION AT THE TIME TIME WARNER'S CHIEF EXECUTIVE GERALD LEVIN DEFENDED THE ARTIST'S RIGHT TO MAKE THE SONG AND THE COMPANY'S RIGHT TO DISTRIBUTE IT HOWEVER TIME WARNER AND ICET LATER PARTED WAYS AFTER THE TWO CLASHED OVER THE CONTENTS OF HIS SUBSEQUENT RECORDING MESSRS DALEY AND SEMEL HOWEVER SAID THE INITIATIVE IS UNRELATED TO THE PAST CONTROVERSIES AND IS THE CULMINATION OF THE STUDIO'S EFFORTS IN THE LAST SEVERAL YEARS TO PRODUCE FAMILYORIENTED PROGRAMMING THEY NOTED FOR EXAMPLE THAT WARNER BROS REENTERED THE CARTOON BUSINESS IN THE LATE 1980S AND TODAY HAS SEVERAL SUCCESSES THAT ARE APPROPRIATE TO INCLUDE UNDER THE FAMILY ENTERTAINMENT LABEL WITH ITS ENTRY INTO RETAIL STORES FEATURING MERCHANDISE WITH MOVIE THEMES THE EXECUTIVES SAID THE COMPANY ALSO HAS ADDITIONAL PRODUCTS ON WHICH TO SLAP THE LOGO THEY ALSO NOTED THAT FOR THE FIRST TIME THE STUDIO HAS A CRITICAL MASS OF MOVIES TO RELEASE UNDER THE FAMILY CATEGORY IN ADDITION TO DENNIS THE MENACE THE OTHER FAMILY MOVIES SCHEDULED FOR RELEASE THIS YEAR INCLUDE FREE WILLY THE SECRET GARDEN BATMAN THE ANIMATED MOVIE AND GEORGE BALANCHINE'S THE NUTCRACKER TIME WARNER'S MOVE IS LIKELY TO HEAT UP ITS BATTLES WITH DISNEY WHICH HAS BUILT A FORMIDABLE FRANCHISE IN FAMILY PROGRAMMING RECENTLY TIME WARNER AND DISNEY ENGAGED IN AN UGLY AND HIGHLY PUBLIC SPAT OVER COMPETITION BETWEEN THE TWO CONCERN'S THEME PARK OPERATIONS DISNEY COMPLAINED THAT TIME WARNER'S SIX FLAGS WAS UNFAIRLY ATTACKING ITS DISNEY THEME PARKS IN ADVERTISING IN RETALIATION DISNEY PULLED ITS OWN ADS FROM TIME WARNER MAGAZINES BUT MESSRS DALEY AND SEMEL DOWNPLAYED ANY POSSIBLE FRICTION BETWEEN THE TWO STUDIOS AS A RESULT OF WARNER BROS' THRUST INTO FAMILY ENTERTAINMENT THEY SAID THAT DESPITE THE PROBLEMS BETWEEN THE PARENT COMPANIES THE TWO STUDIOS HAVE ENJOYED EXCELLENT RELATIONS AND JOINT VENTURE ARRANGEMENTS OVER THE YEARS 9305130078 930513 WEDNESDAY'S MARKETS INDUSTRIALS CLIMB 1356 TO A RECORD INFLATION REPORT HITS BONDS BOOSTS RATES DOLLAR GAINS STRENGTH BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL INVESTORS SHRUGGED OFF RISING INTEREST RATES TO PUSH THE DOW JONES INDUSTRIAL AVERAGE TO A RECORD BOND PRICES TUMBLED ON HIGHERTHANEXPECTED INFLATION DATA AND THE DOLLAR ROSE THE INDUSTRIAL AVERAGE JUMPED 1356 POINTS TO 348231 STANDARD & POOR'S 500STOCK INDEX INCHED UP 044 TO 44480 BUT THE NASDAQ COMPOSITE INDEX SLIPPED 137 TO 68169 ANALYSTS WERE ENCOURAGED THAT THE INDUSTRIAL AVERAGE COULD ACHIEVE A NEW HIGH DESPITE THE WEAKENING BOND MARKET BOND PRICES PLUNGED AFTER THE LABOR DEPARTMENT REPORTED THAT PRODUCER PRICES JUMPED 06 IN APRIL FAR MORE THAN THE 02 RISE ECONOMISTS HAD PREDICTED MANY ANALYSTS SAID THEY BELIEVE THE SURGE IN PRICES WAS A FLUKE ATTRIBUTABLE TO THE LINGERING EFFECTS OF BAD WEATHER IN MARCH IN ANY EVENT STOCK INVESTORS PILED INTO COMMODITY STOCKS AND OTHER ECONOMICALLY SENSITIVE ISSUES IN THE BELIEF THAT THE INFLATION REPORT SIGNALED A STRENGTHENING ECONOMY THE DOW JONES TRANSPORTATION INDEX ANOTHER MEASURE OF FUTURE ECONOMIC ACTIVITY JUMPED 1893 POINTS TO 158941 AN IMPROVING ECONOMY LEADS TO HIGHER INTEREST RATES BUT ALSO TO HIGHER EARNINGS SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH STEPHEN S SMITH CHIEF INVESTMENT OFFICER AND FIXEDINCOME STRATEGIST AT BRANDYWINE ASSET MANAGEMENT SAID THE BOND MARKET'S SHARP REACTION TO THE INFLATION DATA UNDERSCORES THAT INTEREST RATES HAVE BOTTOMED THE BOND MARKET IS INTERPRETING THINGS WITH A MUCH MORE JAUNDICED EYE THESE DAYS MR SMITH SAID THAT TELLS ME A SEA CHANGE IS UNDER WAY OVERSEAS THE HONG KONG STOCK MARKET SOARED 23 TO A RECORD AT THE CONCLUSION OF SINOBRITISH TALKS MOST EUROPEAN STOCK MARKETS ALSO RALLIED ON INTERESTRATE CUTS BY THE GERMAN DUTCH BELGIAN AND AUSTRIAN CENTRAL BANKS BRITISH STOCKS GAINED 09 AND GERMAN SHARES ROSE 08 A CUT IN BASE LENDING RATES BY MAJOR FRENCH BANKS HELPED PROPEL FRENCH STOCKS 1 HIGHER WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 046 TO 10512 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2545 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 952 ISSUES ROSE AND 938 FELL BOND PRICES SANK THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL MORE THAN HALF A POINT OR MORE THAN 5 FOR EACH 1000 FACE AMOUNT TO YIELD 686 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 16100 MARKS AND 11155 YEN COMPARED WITH 16065 MARKS AND 11139 YEN TUESDAY 9305130077 930513 THE SMELL OF CHANEL MAY BE NO 2 ISSUE AFTER CIGARETTES STRONG ODORS OF ALL SORTS MAKE PEOPLE SICK OR MERELY MAD NOW AROMAFREE ZONES BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL IT'S NOT THAT RICHARD CONRAD A BIOCHEMIST IN SAN RAFAEL CALIF DIDN'T LIKE HIS NEXTDOOR NEIGHBOR DENA POSITERI OR HER HOUSE HE JUST DIDN'T LIKE THE WAY THEY SMELLED WE'D BE TALKING ABOUT SOMETHING NEIGHBORLY IN THE DOORWAY SAYS MS POSITERI A PSYCHOLOGIST WHEN MR CONRAD WOULD SUDDENLY SNIFF AND JUMP BACK I FELT LIKE I HAD COOTIES ACTUALLY IT WAS TIDE AND ANAIS ANAIS SCENTS FROM THE DETERGENT POWDER AND THE PERFUME SAYS MR CONRAD WOULD WAFT HIS WAY FROM MS POSITERI'S HOME AND PERSON MAKING HIM SICK HE EVEN HAD A BOUT OF BRONCHITIS THAT HE BLAMES ON THE SMELLS SO MR CONRAD TRADED HIS 320000 HOUSE FOUR BEDROOMS WITH SKYLIGHTS IN SMELLY SAN RAFAEL FOR A PLACE ON FIVE ACRES IN AGRICULTURAL WATSONVILLE UNFORTUNATELY SINCE HE STILL LIVES NEAR PEOPLE WHO WASH THEIR CLOTHES THE FAINT AROMA OF LAUNDRY DETERGENT OCCASIONALLY DRIFTS PAST HIS NEW HOUSE TOO WHAT CIGARETTE SMOKE WAS TO THE PAST DECADE OTHER SMELLS FRAGRANT AND FOUL MAY BE TO THE '90S NOT ONLY DO ODORS COME BETWEEN NEIGHBORS THEY DISRUPT OFFICES AND PEOPLE WHO WEAR SO MUCH PERFUME OR COLOGNE YOU CAN SMELL THEM COMING ARE UNDER INCREASING PRESSURE TO TONE IT DOWN RESTAURANTS HOTELS EVEN SOME CHURCHES ARE SEGREGATING THE OVERPERFUMED ONE WOMAN'S POISON IS BECOMING ANOTHER'S POISON PEOPLE ARE FED UP WITH FRAGRANCES THEY'RE SO PERVASIVE AND INTRUSIVE SAYS MARY LAMIELLE OF VOORHEES NJ WHO HAS HANDED OUT A FEW THOUSAND BUTTONS FOR HER ENVIRONMENTAL HEALTH GROUP PROCLAIMING PERFUME POLLUTES ROCHEL HAIGHBLEHR PUBLISHER OF AN ALTERNATIVE NEWSPAPER IN ATLANTA PREDICTS IN 10 YEARS PEOPLE WON'T BE ALLOWED TO WEAR PERFUME IN AN OFFICE SOMEBODY WILL RAISE A BIG ENOUGH STINK NOT THAT THE 48 BILLION FRAGRANCE INDUSTRY IS ABOUT TO GO UNDER BUT THE DAYS ARE NUMBERED FOR PERFUMES AND COLOGNES THAT COME AT YOU LIKE A TON OF CARGO SAYS VICTOR ZAST PRESIDENT OF QUINTESSENCE INC IN CHICAGO WHICH MAKES JOVAN MUSK HIS COLLEAGUES HE NOTES ARE DEVELOPING SUBTLER SCENTS LIKE CALVIN KLEIN'S ESCAPE OR ESTEE LAUDER'S ORIGINS SPLASHING WATERS AS PART OF A NEW ERA OF RESTRAINT THE FASTESTGROWING PRODUCT AMONG MR ZAST'S OFFERINGS IS WHITE MUSK A LIGHTER PINKER VERSION OF THE EARTHY MUSK OF THE 1970S INTRODUCED IN 1991 THE PRODUCT LAST YEAR HAD SALES OF 40 MILLION EVEN LIGHT AND SUBTLE THOUGH ARE TOO MUCH FOR PEOPLE WITH ALLERGIES WHEEZERS AND SNEEZERS AND THOSE WHO FEEL SICK IN THE PRESENCE OF CHEMICAL SMELLS FALLING IN AT THEIR SIDE IS THE GROWING NUMBER OF PEOPLE WHO ARE MERELY ANNOYED SITTING NEXT TO THE HEAVILY PERFUMED IS THE BIGGEST HEADACHE FOR AIRLINE PASSENGERS ACCORDING TO A SURVEY OF 750 PEOPLE DONE FOR BRISTOLMYERS SQUIBB CO'S EXCEDRIN BY CJ OLSON MARKET RESEARCH INC IN MINNEAPOLIS AT MIDDAY IN LENOX SQUARE MALL IN ATLANTA A DOZEN WOMEN WITH SHOPPING BAGS PAUSE TO SHARE THEIR CONTEMPT FOR DEPARTMENTSTORE PERFUMESPRAYERS I HATE IT SAYS CHASE LOEW A 31YEAROLD HOUSEWIFE IN A PINK TRACK SUIT YOU WALK IN AND 10 PEOPLE HAVE PERFUME POTENT ENOUGH TO BLOW YOU OUT SEVERAL BUSINESSES ARE HELPING THE CAUSE THE NEW YORKER MAGAZINE STOPPED RUNNING SCENT STRIPS LAST FALL AFTER SOME PARTICULARLY PUNGENT FRAGRANCE ADS STUNK UP THE PUBLICATION AND PUT READERS IN A FUNK A COUPLE OF HUNDRED SUBSCRIBERS WROTE PROTEST LETTERS YOU'D GET THE MAGAZINE AND IT JUST SMELLED SAYS STEVEN FLORIO THE MAGAZINE'S PRESIDENT ON RARE OCCASIONS ONCE OR TWICE A YEAR DELTA AIR LINES WILL FOR THE GREATER GOOD BUMP A PASSENGER WHO SMELLS SAYS A SPOKESMAN THE INCIDENTS USUALLY INVOLVE A DOUBLE WHAMMY THE USE OF COLOGNE TO COVER UP THE NEED OF A BATH BUT MORE OFTEN AS ON A RECENT FLIGHT FROM PARIS TO ATLANTA THE SCENTSENSITIVE WILL SIMPLY TRY TO CHANGE SEATS MERVIN SWING RUNS A SCENTFREE INSURANCE AGENCY IN WESTVILLE NJ WHERE PROSPECTIVE EMPLOYEES ARE ASKED IN THEIR JOB INTERVIEW NOT TO WEAR FRAGRANT COSMETICS NOT EVEN HAIR SPRAY DEODORANT THOUGH IS STILL OK PACIFIC THEATRES CORP HAS REMOVED AIR FRESHENERS FROM THE RESTROOMS IN THE 14 MOVIE THEATERS IT RUNS IN THE SAN FRANCISCO BAY AREA IS THERE A HINT OF EAU DE TOILETTE IN THE AIR WHEN YOU WALK INTO YOUR QUARTERS AT THE EMBASSY SUITES HOTEL IN ALEXANDRIA VA STEPHEN LEFTWICH EXECUTIVE HOUSEKEEPER STANDS READY TO REMOVE ALL OLFACTORY OFFENDERS FREE OF CHARGE LADIES' PERFUMES LIKE GIORGIO AND OPIUM HAVE MORE OBNOXIOUS SMELLS THAT TEND TO LINGER LONGER HE SAYS HOUSEKEEPERS BRING IN FANS AND AIR PURIFIERS WALLS ARE SCRUBBED WITH BAKING SODA CLEAN HAS NO SMELL MR LEFTWICH SAYS IT'S NEUTRAL MORE AND MORE PRODUCTS ARE COMING OUT IN UNSCENTED VERSIONS ACCORDING TO MARKETING INTELLIGENCE SERVICE LTD OF NAPLES NY ABOUT 66 OF THE 774 NEW HEALTH AND BEAUTY AIDS INTRODUCED SO FAR THIS YEAR WERE MADE NOT TO SMELL INDEED SOME PUBLIC FACILITIES FIND THEY DO BETTER BUSINESS WHEN THEY KEEP DOWN UNDESIRABLE ODORS CHARLIE TROTTER'S A CHICAGO RESTAURANT HAS HOSTS WHO QUIETLY SNIFF THEN SEAT SCENTED PATRONS IN SEPARATE ROOMS AS FAR AWAY AS POSSIBLE FROM CONNOISSEURS OF ITS WINES SOME OF WHICH GO FOR 100 OR MORE A BOTTLE THEY'RE PAYING FOR A PRISTINE PERFECT ATMOSPHERE SAYS MR TROTTER OF THE WINE MAVENS THE COLLECTION BASKET AT FIRST UNITARIAN CHURCH OF SAN FRANCISCO ISN'T NOTICEABLY HEAVIER SINCE FOUR SCENTFREE PEWS WERE SET ASIDE LAST YEAR BUT THE REV VICTOR CARPENTER NOW BELIEVES THERE IS LESS IN THE AIR TO CLOUD CONGREGANTS' PRAYERS THIS RAISES THE CONSCIOUSNESS OF ALL OF US HE SAYS THE CHANGE HE NOTES HAS ALSO BROUGHT OUT THE CHURCH'S TRUE SMELL MOLDY HYMNALS OF COURSE EXILING ODOR CAN BE A FAIRLY COMPLICATED MATTER A MARIN COUNTY CALIF FIRM IS SPENDING MORE THAN 20000 TO GET ALL THE SMELL OUT OF A 15000 1988 FORD VAN THE VAN IS BEING STRIPPED OF VINYL AND HAVING ITS AIR CHARCOALFILTERED THE DRIVER WILL BE ALLOWED TO SHOWER BUT NOT WEAR AFTERSHAVE OR BATHE WITH A SCENTED SOAP SAYS EDWARD RYKEN CHIEF EXECUTIVE OF THE MARIN SENIOR COORDINATING COUNCIL A PRIVATE FIRM STARTING A SCENTFREE PUBLIC TRANSPORTATION SERVICE HE'LL USE PLAIN WHITE SOAP WE'LL BUY IT FOR HIM PUSHING BACK AGAINST THESE DEFENDERS OF NEUTRAL AIR ARE THE GREAT OVERWASHED MASSES WHO THINK THEY SMELL GOOD BECAUSE THEY WEAR TOO MUCH PERFUME ELAINE TWADDELL SAYS SHE TRIED TO KEEP THE SEVEN EMPLOYEES SMELLING NEUTRAL AT HER VAUGHN'S MINIMARKET IN HOLLY SPRINGS GA BUT ONE CLERK DEFIANTLY SPLASHED ON TOO MUCH CALVIN KLEIN'S OBSESSION THE WOMAN'S PURPOSE TO HAVE POWER OVER ME SAYS MRS TWADDELL AS IS TRUE OF DIEHARD SMOKERS THERE IS A COUNTERMOVEMENT ALBEIT AN UNORGANIZED ONE SAYS MS POSITERI OF SAN RAFAEL I HAVE A RIGHT TO CHOOSE HOW TO MAKE MYSELF SMELL EVEN MR SWING THE INSURER IN NEW JERSEY WHO DISCOURAGES FRAGRANCES WHEN HE HIRES PEOPLE ENDED UP WITH A SALESMAN WHO THOUGHT A MAN WASN'T A MAN WITHOUT WEARING COLOGNE THE FELLOW WASN'T LONG IN HIS JOB HE QUIT NOW MR SWING STICKS TO HIRING PEOPLE WHO HAVE ALLERGIES ALAS EVEN LOVE IS LOST OVER AROMA MS HAIGHBLEHR OF ATLANTA BROKE UP WITH HER BOYFRIEND OF LONG STANDING EVEN AFTER HE HAD STOPPED WEARING COLOGNE AND CHANGED SHAMPOOS WHEN HE BOUGHT A NEW CHEVROLET BLAZER SHE WAS HIT BY A STRONG WHIFF OF NEWCAR SMELL AND WOULDN'T GET IN THEY DON'T MAKE A BUBBLE BIG ENOUGH FOR YOU HE GROANED AS HE DROVE OFF FOR GOOD 9305130076 930513 BUSINESS BRIEF GLENFED INC REPORTS THIRDPERIOD PROFIT ON ONETIME GAIN GLENDALE CALIF GLENFED INC STILL STRUGGLING TO KEEP CONTROL OF ITS SAVINGSANDLOAN BUSINESS POSTED A FISCAL THIRD QUARTER PROFIT ON A ONETIME 568 MILLION GAIN FOR THE PERIOD ENDED MARCH 31 GLENFED POSTED NET INCOME OF 452 MILLION OR 128 A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 1466 MILLION OR 428 A SHARE WITHOUT THE ONETIME GAIN THE PRETAX LOSS WAS 504 MILLION GLENFED PARENT OF GLENDALE FEDERAL BANK SAID THE GAIN WAS LARGELY DUE TO COMPLETION OF AN EXCHANGE OFFER IN WHICH 1373 MILLION OF SUBORDINATED DEBT WAS EXCHANGED FOR THE BANK'S PREFERRED STOCK IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GLENFED CLOSED AT 3 UP 125 CENTS GLENFED SAID ITS THRIFT IS STILL CLASSIFIED AS A SIGNIFICANTLY UNDERCAPITALIZED INSTITUTION UNDER FEDERAL REGULATIONS MEANING IT COULD BE SEIZED BY FEDERAL REGULATORS HOWEVER GLENFED SAID IT WAS TAKING UNSPECIFIED STEPS TO MEET THE CAPITAL REQUIREMENTS AND THAT THE OFFICE OF THRIFT SUPERVISION HAD INDICATED IT MAY EXTEND A JUNE 30 DEADLINE FOR COMPLETING RECAPITALIZATION FOR THE QUARTER GLENFED SAID IT RECORDED A 642 MILLION PROVISION FOR LOAN LOSSES TO COVER CHARGEOFFS AND TO CONTINUE BUILDING ITS ALLOWANCE FOR FUTURE LOSSES BECAUSE OF CONTINUED WEAKNESS IN THE CALIFORNIA ECONOMY THAT COMPARES WITH A LOANLOSS PROVISION OF 1318 MILLION A YEAR EARLIER NET INTEREST INCOME WAS DOWN 263 TO 933 MILLION FROM 1266 MILLION A YEAR EARLIER THE DECREASE WAS CAUSED BY A REDUCTION IN AVERAGE LOANS RECEIVABLE MORTGAGEBACKED SECURITIES AND INVESTMENT SECURITIES GLENFED SAID 9305130075 930513 TECHNOLOGY & HEALTH BAXTER AGREES TO PAY 105 MILLION TO SETTLE RHONEPOULENC CASE DEERFIELD ILL BAXTER INTERNATIONAL INC AGREED TO PAY 105 MILLION TO RHONEPOULENC RORER INC TO SETTLE PATENT LITIGATION OVER A CLOTTING FACTOR FOR HEMOPHILIACS THE SETTLEMENT LED BAXTER TO RESTATE ITS FIRSTQUARTER EARNINGS THE HOSPITAL SUPPLY COMPANY SAID IT HAD NET INCOME OF 138 MILLION OR 49 CENTS A SHARE REFLECTING THE SETTLEMENT IN THE 1992 FIRST QUARTER BAXTER HAD A LOSS OF 37 MILLION OR 15 CENTS A SHARE REFLECTING AN ACCOUNTING CHARGE OF 165 MILLION RHONEPOULENC RORER HAD SOUGHT INJUNCTIONS AGAINST BAXTER TO PREVENT IT FROM MARKETING ITS CLOTTING PRODUCT RHONEPOULENC AND SCRIPPS RESEARCH INSTITUTE OF LA JOLLA CALIF JOINTLY ALLEGED THAT BAXTER HAD INFRINGED ON A PATENT FOR THE PRODUCT UNDER THE SETTLEMENT BAXTER WILL RECEIVE WORLDWIDE LICENSES COVERING ITS CLOTTING PRODUCTS KNOWN AS HEMOFIL M AND RECOMBINATE AHF MARKETED BY BAXTER'S HYLAND UNIT BAXTER ALSO AGREED TO PAY UNDISCLOSED ONGOING ROYALTIES AND FEES BASED ON SALES OF FACTOR VIIIC CONCENTRATES FACTOR VIIIC IS THE CLOTTING PROTEIN MISSING FROM THE BLOOD OF PEOPLE WITH HEMOPHILIA A THE MOST COMMON FORM OF HEMOPHILIA SCRIPPS AND RHONEPOULENC RORER WHICH IS THE EXCLUSIVE LICENSEE OF THE SCRIPPS PATENT HAD FILED SUIT IN DELAWARE IN MARCH 1987 BAXTER'S SALES OF CLOTTING PRODUCTS ARE ESTIMATED TO EXCEED 300 MILLION ANNUALLY THOSE OF RHONEPOULENC A PENNSYLVANIA UNIT OF RHONEPOULENC SA OF FRANCE ARE ESTIMATED AT ABOUT 100 MILLION THE SETTLEMENT WON'T HAVE ANY SIGNIFICANT FINANCIAL EFFECT ON GENETICS INSTITUTE INC WHICH COLLABORATED WITH BAXTER IN DEVELOPING ITS VERSION OF FACTOR VIIIC ACCORDING TO GAREN BOHLIN EXECUTIVE VICE PRESIDENT OF THE CAMBRIDGE MASS BIOTECHNOLOGY CONCERN AS PART OF THE SETTLEMENT GENETICS INSTITUTE AGREED TO SHARE IN THE COST OF FUTURE ROYALTIES PAID BY BAXTER TO RHONEPOULENC RORER ON BAXTER'S SALES OF THE DRUG THAT WILL RESULT IN A MODEST REDUCTION IN OUR ROYALTY FLOW FROM BAXTER MR BOHLIN ADDED HE DECLINED TO DISCLOSE GENETICS INSTITUTE'S SHARE OF ROYALTY PAYMENTS TO RHONEPOULENC RORER GENETICS INSTITUTE IS 67OWNED BY NEW YORKBASED AMERICAN HOME PRODUCTS CORP MR BOHLIN SAID GENETICS INSTITUTE WHICH SUPPLIES BAXTER WITH THE DRUG WILL CONTINUE TO GET PAYMENTS FROM BAXTER FOR MANUFACTURING IT SUCH PAYMENTS EXCEED ROYALTIES PAID ON SALES OF THE DRUG HE SAID MOREOVER UNDER THE SETTLEMENT AGREEMENT RHONEPOULENC RORER HAS AN OPTION TO PURCHASE SUPPLIES OF THE GENETICALLY ENGINEERED VERSION OF THE DRUG MADE BY GENETICS INSTITUTE POTENTIALLY INCREASING GENETICS INSTITUTE'S MANUFACTURING REVENUES 9305130074 930513 MARKETSCAN PRICE LURE OF PRIVATELABEL PRODUCTS FAILS TO HOOK MANY BUYERS OF BABY FOOD BEER BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL SURPRISE AT A TIME WHEN THE PRIVATELABEL MENACE HAS WALL STREET PLAYING TAPS FOR MARKETERS OF BRANDNAME CONSUMER PRODUCTS NONAME ENTRIES ARE BEING ROUNDLY THRASHED BY BIG BRANDS IN SOME KEY PRODUCT AREAS TOOTHPASTE TUNA BABY FOOD AND BEER ARE AMONG THE CATEGORIES IN WHICH PRIVATELABEL PRODUCTS EITHER HAVE BEEN UNABLE TO ESTABLISH A BEACHHEAD OR ARE POSTING SHARP DECLINES A NUMBER OF PRIVATELABEL PRODUCTS RANGING FROM HOT TEA TO HOT DOGS EXPERIENCED A SHARP DROP IN SALES COMPARED WITH LEADING BRANDS FOR THE 13 WEEKS ENDED MARCH 28 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE FOR EMBATTLED BIGBRAND MARKETERS A CENTRAL LESSON IS THAT EVEN IN THESE DAYS OF WANING CONSUMER LOYALTY SHOPPERS HAVEN'T BECOME ALTOGETHER IMMUNE TO THE PULL OF WELLKNOWN NAMES IF THE PRICE IS RIGHT THEY WILL BUY BIG BRANDS BUT THE TURNABOUT BY TOP BRANDS IN SOME CATEGORIES ALSO RELIES ON MORE INTANGIBLE FACTORS SOME PRODUCTS HAVE BEEN INSULATED FROM PRIVATELABEL DAMAGE BY A COMPLEX WEB OF EMOTIONAL FACTORS AND LINGERING DOUBTS ABOUT THE QUALITY OF THE DISCOUNT GOODS AND MANY SHOPPERS SEEM UNWILLING TO ENTRUST THEIR HAIR COMPLEXION AND DENTAL HEALTH TO STORE BRANDS STILL PRIVATELABEL SALES ARE HUGE ADDING UP TO 184 OF ALL ITEMS SOLD IN GROCERY STORES AND GROWING AT TWICE THE RATE OF NATIONAL BRANDS AND THE PRIVATE LABEL MANUFACTURERS ASSOCIATION PREDICTS THAT STORE BRANDS WILL GROW TO A DAUNTING 30 OF ALL SUPERMARKET SALES BY 1995 NOTHING IS SACRED ANY CATEGORY IS OPEN SEASON RIGHT NOW SAYS DAVID A NICHOL PRESIDENT OF LOBLAW'S INTERNATIONAL MERCHANTS IN TORONTO ITS PARENT LOBLAW COS THE CANADIAN RETAILER HAS DEVELOPED AN EXTENSIVE LINE OF PRESIDENT'S CHOICE PRODUCTS WHICH IT SELLS IN ITS OWN STORES AND IN THE US THAT MEANS BIG BRANDS IF THEY ARE TO STAVE OFF DISCOUNTERS' INROADS WILL HAVE TO GET SERIOUS ABOUT SHAKING OFF THEIR ADDICTION TO THE FAT PRICE INCREASES THAT HELPED CREATE THE PRIVATELABEL BOOM WITH PRICING SUPPLANTING ADVERTISING AND MARKETING AS THE KEY ISSUE IN SELLING PRODUCTS MARKETERS ARE TRYING TO DIVINE EXACTLY HOW MUCH EXTRA PROFIT MARGIN THEY CAN GET AWAY WITH BRANDED MANUFACTURERS HAVE GOTTEN A LITTLE BIT GREEDY IN THEIR PRICING CONCEDES WILLIAM JOHNSON PRESIDENT AND CHIEF EXECUTIVE OF STARKIST FOODS INC A UNIT OF HJ HEINZ CO TO KEEP PRICES DOWN STARKIST HALTED ITS MULTIMILLIONDOLLAR NETWORKTELEVISION ADVERTISING CAMPAIGN FEATURING CHARLIE THE TUNA INDUSTRY LEADER STARKIST AND RIVAL BUMBLE BEE CUTTING PRICES AGGRESSIVELY IN RESPONSE TO SHRINKING SALES MANAGED TO LURE SO MANY SHOPPERS BACK THAT PUBLIX SUPERMARKETS INC LAKELAND FLA DROPPED ITS OWN STORE BRAND OF TUNA FIVE YEARS AGO PRIVATELABEL TUNA ACCOUNTED FOR 20 OF ALL TUNA SOLD WITH A FIERCE PRICE WAR ROLLING BACK TUNA PRICES TO 1983 LEVELS PRIVATE LABELS' SHARE HAS BEEN CUT IN HALF FOR THE LAST TWO MONTHS OF 1992 A MERE NICKEL A CAN SEPARATED PRIVATELABEL TUNA AND STARKIST NATIONAL BRANDS IN OTHER CATEGORIES HAVE SIMILARLY ADJUSTED TO RAZORTHIN PROFIT MARGINS TO BEAT BACK PRIVATE LABELS CLOROX COS HASN'T RAISED PRICES ON MOST BLEACHES IN THREE YEARS A PACK OF WRIGLEY'S GUM IS STILL 25 CENTS A PRICE SET IN 1987 WE DON'T LOOK AT PRICING AS SOMETHING THAT YOU AUTOMATICALLY TAKE UP EVERY YEAR REGARDLESS OF WHAT'S HAPPENING TO YOUR UNDERLYING COST SAYS A WRIGLEY SPOKESMAN WHEN TOP BRANDS HOLD PRICES DOWN AND REV UP NEW ENTRIES PRIVATE LABELS CAN GET CAUGHT IN THE CROSSFIRE IN THE 13WEEK PERIOD TRACKED BY INFOSCAN SALES OF STOREBRAND TEA FELL 8 AS TETLEY PUSHED HARD WITH A NEW ROUND TEABAG AND DISCOUNTED HEAVILY NONAME PEANUT BUTTER SALES WERE OFF 13 IN THE FACE OF NEW LINES SUCH AS REESE'S FROM HERSHEY FOODS CORP AND SALES OF PRIVATELABEL BACON AND BREAKFAST SAUSAGE FELL NEARLY 10 AS CUSTOMERS TURNED TO THE LEANER CUTS OFFERED BY NATIONAL NAMES IN A FLURRY OF STUDIES OF HOW MUCH MORE PREMIUM BRANDS CAN CHARGE BEFORE LOSING CUSTOMERS AN EMERGING RULE OF THUMB IS THAT A NONAME PRODUCT HAS TO SELL FOR AT LEAST 15 BELOW A NATIONAL BRAND TO ATTRACT SHOPPERS BUT EACH CATEGORY HAS ITS OWN MAGIC PRICE GAP AND WHEN THAT GAP GETS TOO WIDE EVEN AMERICA'S MOST VENERABLE BRANDS GET HIT A 37 GAP BETWEEN PRIVATE LABELS AND WONDER BREAD HAS CREATED A 42 SHARE FOR THE DISCOUNTERS ACCORDING TO INFORMATION RESOURCES DATA FOR CERTAIN PRODUCTS OF A MORE PERSONAL NATURE HOWEVER SHOPPERS SEEM LESS TEMPTED BY PRICE JIM MILLER A COMPUTERPARTS SALESMAN IN MINNEAPOLIS GLADLY STOCKS UP ON PRIVATELABEL BREAD AND ICE CREAM THE SAME GOES FOR PAPER TOWELS THEY ALL WORK WHY PAY FOR A NAME HE SAYS BUT MR MILLER DRAWS THE LINE AT BABY FOOD LET'S FACE IT FOR SOMETHING LIKE THAT YOU WANT TO MAKE SURE YOU GET THE GOOD STUFF HE SAYS I DON'T KNOW ANYTHING ABOUT ELMER FUDD BABY FOOD BUT I KNOW GERBER PRIVATELABEL DEODORANTS HAVE ALSO FAILED TO CATCH ON ACCOUNTING FOR A MERE 1 OF UNIT SALES THE WILLINGNESS TO SPEND MORE FOR A BRAND HAS TO DO WITH HOW MUCH RISK THERE IS IN GIVING IT UP SAYS GEORGE ROSENBAUM CHIEF EXECUTIVE OF LEO J SHAPIRO & ASSOCIATES A MARKETRESEARCH FIRM THE MORE RISK THE HIGHER THE PRICE DIFFERENTIAL YOU WILL SUPPORT CONSUMERS HAVE ALSO AVOIDED PRIVATELABEL FACE CREAMS SOAPS AND SHAVING CREAMS EACH CATEGORY HAS LESS THAN A 2 PRIVATELABEL PENETRATION AT SUPERMARKETS AND EVEN LESS WHEN DRUGSTORES AND MASS MERCHANTS ARE INCLUDED ACCORDING TO INFORMATION RESOURCES THAT KIND OF SCATTERED RESISTANCE IS A SIGN THAT NAGGING FEARS ABOUT THE QUALITY OF PRIVATELABEL BRANDS PERSIST CONSUMERS WORRY THAT IF YOU BUY A GENERIC HOT DOG YOU'LL GET WHATEVER WAS SCRAPED UP FROM THE MEAT YARD SAYS RUSSELL FERSTANDIG PRESIDENT OF COMPETITIVE ADVANTAGE CONSULTING IN FRANKLIN LAKES NJ TO STAY AHEAD OF CHEAP RIVALS SOME BIG BRANDS HAVE MADE THEMSELVES INTO MOVING TARGETS INTRODUCING A STEADY STREAM OF NEW FEATURES THAT ARE DIFFICULT TO KNOCK OFF IN THE PAST DECADE BIG TOOTHPASTE MAKERS HAVE INTRODUCED GEL TARTARCONTROL AND BAKINGSODA VERSIONS AND SUCH PACKAGING INNOVATIONS AS THE STANDUP TUBES INTRODUCED LAST YEAR THESE MOVES HAVE KEPT PRIVATELABEL SALES AT ABOUT 2 OF THE TOOTHPASTE MARKET IN UNIT TERMS IT MAKES IT HARDER FOR PRIVATE LABEL SAYS NIGEL BURTON GENERAL MANAGER OF COLGATEPALMOLIVE CO'S ORALCARE GROUP IN THE US MARGARINE LIKEWISE IS SURPRISINGLY HIGHTECH SAYS MICHAEL BAUER MARKETING VICE PRESIDENT AT VAN DEN BERGH FOODS CO A DIVISION OF UNILEVER PLC AFTER THE CATEGORY'S STAPLE OF BASIC STICK MARGARINE WAS COPIED BY PRIVATELABEL COMPANIES THE INDUSTRY BEGAN INTRODUCING A HOST OF FATREDUCED OR BUTTERLIKE PRODUCTS IN JUNE VAN DEN BERGH INTRODUCED A FATFREE VERSION OF PROMISE ULTRA WHICH MR BAUER CALLS THE FIRST FATFREE MARGARINE ON THE MARKET THE PRIVATELABEL INDUSTRY IS GEARING UP TO TAKE A GULP OUT OF THE BEER INDUSTRY PRIVATELABEL BEER SALES AMOUNT TO LESS THAN 1 OF THE SEGMENT MORE THAN 25 OF BEER SOLD IS CONSUMED IN PUBLIC MAKING THE IMAGE OF A NATIONAL BRAND EXTREMELY IMPORTANT TO DRINKERS MARKETERS FIGURE BUT THE ENORMOUS ADVERTISING EXPENSES OF THE BIG BEER COMPANIES MAKE THEM VULNERABLE SAYS MR NICHOL OF LOBLAW'S ALREADY LOBLAW'S PC GENUINE DRAFT BEER INTRODUCED A FEW MONTHS AGO IS OUTSELLING MILLER GENUINE DRAFT IN ONTARIO HE SAYS NOT SO COUNTERS A MILLER SPOKESWOMAN IN CANADA ALTHOUGH SHE NOTES THAT MILLER FOUGHT BACK BY INTRODUCING A SPECIAL LOWPRICED 18PACK SIMILAR BATTLES MAY BE BREWING SOUTH OF THE BORDER GIVING JOE SIXPACK CAUSE TO REJOICE MR NICHOL VOWS BEER PRICES ARE ABOUT TO COME DOWN DRAMATICALLY IN THE UNITED STATES 9305130073 930513 REVIEW & OUTLOOK EDITORIAL MORE SECRETIVE THAN RUSSIA US TV VIEWERS WERE RECENTLY ABLE TO SEE A RUSSIAN PARLIAMENTARY COMMITTEE DISCUSS TAX LAWS ON CSPAN BUT THEY'LL NEVER SEE THEIR OWN CONGRESSIONAL COMMITTEES DEBATE THEIR TAXES THAT IMPORTANT PROCESS IS OFF LIMITS GET LOST TRESPASSERS WILL BE SHOT ESPECIALLY TODAY AS HOUSE WAYS AND MEANS CONTINUES DECIDING HOW TO RAISE TAXES BY 266 BILLION BUT THIS TIME THERE IS A REVOLT AGAINST THE SECRECY WAYS AND MEANS REPUBLICANS VOTED UNANIMOUSLY LAST WEEK TO OPEN THEM BUT SINCE EVERY DEMOCRAT VOTED AGAINST SECRECY WON 24 TO 14 NO DOUBT SOME GOP MEMBERS SIMPLY WANT TO EMBARRASS THE DEMOCRATS BUT THE EFFORT TO LET THE SUNSHINE IN IS NONETHELESS COMMENDABLE THE ARGUMENT IN FAVOR OF CLOSED MEETINGS IS THAT WITHOUT THEM MEMBERS WOULD BE BOMBARDED WITH APPEALS FROM LOBBYISTS AND THEY'D BE TEMPTED TO FAVOR SPECIAL INTERESTS WHAT DOES ANYONE THINK HAPPENS NOW GUCCI GULCH LAWYERS MAY NOT BE ABLE TO PARK THEMSELVES IN THE COMMITTEE ROOM ITSELF BUT THEIR INTERESTS ARE REPRESENTED BY SYMPATHETIC MEMBERS OR STAFFERS MOMENT TO MOMENT LOBBYISTS KNOW MORE ABOUT WHAT GOES ON INSIDE WAYS AND MEANS THAN SOME MEMBERS WHO MUST LEAVE TO ATTEND TO OTHER BUSINESS THE ONLY ONES KEPT IN THE DARK ARE THE AMERICAN PEOPLE LAST WEEK 15 FRESHMEN LED BY CALIFORNIA'S RICHARD POMBO HELD A NEWS CONFERENCE IN FRONT OF THE WAYS AND MEANS HEARING ROOM DEMANDING IT BE OPENED THEY EVEN LEANED A HUGE SIGN AGAINST THE DOOR SAYING DO NOT DISTURB DEMOCRATS RAISING TAXES MANY OF THE NEW MEMBERS ARE VETERANS OF LOCAL GOVERNMENT AND SAY THAT CONGRESS'S PRACTICES HAVE BEEN AN EYEOPENER REP HOWARD BUCK MCKEON OF CALIFORNIA SERVED ON BOTH A SCHOOL BOARD AND CITY COUNCIL WE COULD NEVER DO ANYTHING OF THIS NATURE HE SAYS THERE IS NO WAY WE COULD DISCUSS THE PUBLIC'S BUSINESS BEHIND CLOSED DOORS NO WONDER WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI HAS TOLD THE WHITE HOUSE IT WILL GET ITS TAX BILL ONLY IF IT GIVES HIM POWEROFATTORNEY TO NEGOTIATE CHANGES A NEW CBS POLL FOUND THAT BY 48 TO 40 THE AMERICAN PEOPLE VIEW THE CLINTON PLAN AS UNFAIR BY 33 TO 28 THEY THINK IT WILL HURT THE ECONOMY IN THE LONGRUN FOCUS GROUPS BECOME EXASPERATED WHEN THEY LEARN OF THE DIZZYING ARRAY OF TAXES IN THE PLAN HIGHER INCOME TAXES 123 BILLION AN ENERGY TAX 73 BILLION HIGHER CORPORATE TAXES 28 BILLION AND TAXES ON SOCIAL SECURITY BENEFITS 23 BILLION YESTERDAY MR ROSTENKOWSKI EVEN HAD THE DEMOCRATS CAUCUSING IN SOME SECRET PART OF THE BUILDING TO AVOID DEBATE THE DEMOCRATIC LEADERSHIP PLANS A LIGHTNINGFAST FLOOR VOTE IN LATE MAY BEFORE THE DEMOCRATS SUFFER POSSIBLE HUMILIATION IN THE JUNE 5 TEXAS SENATE RACE WHICH IS FAST BECOMING A REFERENDUM ON THE CLINTON BUDGET PLAN DEMOCRATS ARE CLEARLY NERVOUS ABOUT THE BILL'S PROSPECTS I THINK THEY'LL PUT A BILL TOGETHER DO A WHIP COUNT AND FIND THEY DON'T HAVE THE VOTES TO PASS IT SAYS DEMOCRATIC REP BOB CARR OF MICHIGAN I THINK IT'S GOING TO TAKE SOME FAIRLY SIGNIFICANT ENGINEERING TO GET THIS DONE A KEY TO THAT ENGINEERING IS THE CLOSED COMMITTEE DRAFTING SESSIONS IN WAYS AND MEANS CHAIRMAN ROSTENKOWSKI THINKS HE CAN STONEWALL ATTEMPTS TO OPEN UP BUT THE CHAIRMAN IS ALSO ON RECORD AS SAYING HE WANTS TO KNOW WHAT VOTERS THINK ABOUT TAXES UNDER THE CIRCUMSTANCES IF HE DOESN'T OPEN UP WE SUSPECT THE AMERICAN PEOPLE ARE LIKELY TO GIVE HIM AN EARFUL 9305130072 930513 MARKETING & MEDIA CAPITAL CITIES/ABC CLOSING ITS MAGAZINE FOR SOAPOPERA FANS NEW YORK CAPITAL CITIES/ABC INC SAID IT WILL CLOSE EPISODES A MAGAZINE FOR VIEWERS OF ABC TELEVISION NETWORK SOAP OPERAS AFTER ITS JULY/AUGUST ISSUE ALTHOUGH THE MAGAZINE WAS CONSIDERED A SUCCESS AFTER ITS LAUNCH IN 1990 WILLIAM ABRAMS EPISODES' COFOUNDER AND EXECUTIVE DIRECTOR SAID YESTERDAY THAT THE ECONOMICS OF SUSTAINING A VERY LARGE CIRCULATION PROVED TO BE INSUPPORTABLE EPISODES USED AN INNOVATIVE SYSTEM OF OFFERING SUBSCRIPTIONS THROUGH A 900 NUMBER ALLOWING VIEWERS TO PAY THROUGH THEIR PHONE BILLS BUT THE MAGAZINE RAN INTO TROUBLE IN OCTOBER WHEN IT RAISED ITS SUBSCRIPTION PRICE TO 795 FROM 4 AND CHANGED TO AN 800 NUMBER FOR OFFERING FREE SAMPLE ISSUES THAT WAS FOLLOWED BY A MORE TRADITIONAL AND COSTLY SYSTEM OF BILLING AND COLLECTION IT BECAME VERY COSTLY TO BUILD CIRCULATION AND SUBSCRIPTION RENEWALS MR ABRAMS SAID PUBLISHED BY THE ABC TELEVISION NETWORK THE MAGAZINE HAD ONE MILLION SUBSCRIBERS IN A CROWDED FIELD OF COMPETING SOAP OPERA MAGAZINES IT FOCUSED ON THE ABC DAYTIME SOAP OPERAS AND STARS AND WAS PUBLISHED EVERY OTHER MONTH IT HAD DRAWN A NUMBER OF PACKAGEDGOODS ADVERTISERS OFTEN THOSE THAT ADVERTISED ON THE SOAP SHOWS EPISODES HAS AVERAGED ABOUT 35 AD PAGES PER ISSUE ABC SAID IT WILL ISSUE REFUNDS FOR THE UNEXPIRED PORTIONS OF SUBSCRIPTIONS FOLLOWING PUBLICATION OF THE LAST ISSUE MR ABRAMS SAID THE NETWORK HASN'T DECIDED WHAT TO DO WITH THE MAGAZINE'S VALUABLE SUBSCRIPTION LIST 9305130071 930513 REVIEW & OUTLOOK EDITORIAL EARTHQUAKE HITS JERSEY CITY HOLLYWOOD'S MOVIE MELODRAMA OF WALL STREET DEPICTED A GREEDY COMMUNITY WILLING TO SACRIFICE MORALITY FOR THE BOTTOM LINE WE'VE GOT ANOTHER IDEA FOR A WALL STREET MOVIE BUT HOLLYWOOD WON'T MAKE IT EVEN THOUGH IT'S ALL TRUE A DEVOUTLY RELIGIOUS HARVARD GRAD MAKES A FORTUNE ADVISING INVESTORS ON WALL STREET HE GIVES THAT UP TO HEAD A GRASSROOTS ANTITAX GROUP IN A GRITTY MACHINERUN CITY THAT IS 65 MINORITY HE RUNS FOR MAYOR AND IN A FLUKE WINS A SPECIAL ELECTION AS A REPUBLICAN HE QUICKLY MOVES TO CUT TAXES PUT COPS ON THE STREETS AND OPEN SCHOOLS TO VOUCHERS SIX MONTHS LATER IN THE FORMAL ELECTION HE FORMS HIS OWN RAINBOW COALITION CAMPAIGN SLATE A CHARISMATIC BLACK DEMOCRATIC PREACHER COMES TO TOWN TO RAIL AGAINST HIM BUT HE CRUSHES THE MACHINE IN A 2 TO 1 VICTORY ALL OF THIS HAS HAPPENED IN JERSEY CITY NJ A CITY OF 230000 PEOPLE JUST ACROSS THE HUDSON FROM MANHATTAN BRET SCHUNDLER A 34YEAROLD FORMER EXECUTIVE AT SALOMON BROTHERS AND CJ LAWRENCE WON A FULL FOURYEAR TERM ON TUESDAY WITH AN ASTONISHING 68 OF THE VOTE LOUIS MANZO THE CANDIDATE OF THE INFAMOUS MACHINE FOUNDED BY FRANK I AM THE LAW HAGUE IN 1917 WON ONLY 29 OF THE VOTE HE SAID HE FELT AS IF HE HAD BEEN HIT BY A REFRIGERATOR MR SCHUNDLER HAS A MANDATE TO CLEAN UP JERSEY CITY AND THROW IT OPEN FOR BUSINESS IN MARCH DEAN WITTER MOVED 200 JOBS TO THE CITY'S EXCHANGE PLACE BUSINESS CENTER OTHERS MAY FOLLOW THE STATE LEGISLATURE ENACTED A LAW THAT WILL ALLOW THE CITY TO BUNDLE TAX LIENS FOR SALE TO INSTITUTIONAL INVESTORS AND CUT ITS SKYHIGH PROPERTY TAXES MAYOR SCHUNDLER ALSO WANTS TO EXPAND THE CITY'S URBAN ENTERPRISE ZONE PROGRAM WHICH ALLOWS LOCAL BUSINESSES TO CHARGE A 3 SALES TAX NEW YORK CITY'S IS OVER 8 IF THEY CREATE NEW JOBS POLITICALLY MAYOR SCHUNDLER IS IN A POSITION TO ACTUALLY IMPLEMENT HIS REFORMS EIGHT OF HIS NINE CITY COUNCIL RUNNING MATES WON TOO THE NINTH AFRICANAMERICAN MELISSA HOLLOWAY IS IN A JUNE RUNOFF ALL PLEDGED TO LOWER TAXES AND REDUCE REGULATION JERSEY CITY'S NOTORIOUS SYSTEM OF PATRONAGE IS BEING SCRAPPED NO ONE BACKED ME BECAUSE THEY WANTED A 19000 A YEAR CITY HALL JOB SAYS MAYOR SCHUNDLER BECAUSE JERSEY CITY HAS BEEN RULED BY POLITICAL HACKS FOR 75 YEARS MR SCHUNDLER'S FEAT IS REMARKABLE ROBERT JANISZEWSKI THE HUDSON COUNTY EXECUTIVE WHO RAN BILL CLINTON'S 1992 NEW JERSEY CAMPAIGN PULLED OUT ALL THE STOPS MR MANZO'S MAIN ISSUE WAS THAT MR SCHUNDLER WAS A WALL STREET SHARK AND A REPUBLICAN BACKER OF REAGANBUSH GREED MANZO FLYERS CHARGED HIM WITH SUPPORTING APARTHEID BECAUSE A FAMILY NURSERY BUSINESS USED A SOUTH AFRICAN MINERAL SENATOR BILL BRADLEY WAS DRAGOONED INTO CAMPAIGNING FOR THE MACHINE'S PICK THE DEMOCRATIC NATIONAL COMMITTEE SPENT 35000 TO IMPORT JESSE JACKSON TO DELIVER A FIREBREATHING SPEECH LINKING MR SCHUNDLER TO THE VALUES OF THE UNION OF SOUTH AFRICA VOTERS REJECTED ALL THIS FEARMONGERING BY ELECTION DAY EVERYONE CERTAINLY KNEW MR SCHUNDLER WAS A REPUBLICAN HE STILL WON EVEN THOUGH ONLY 6 OF THE VOTERS ARE REPUBLICANS IN A CITY THAT IS 30 BLACK 25 HISPANIC AND 10 ASIAN MR SCHUNDLER WON THE MINORITY VOTE IN MARION GARDENS THE HOUSING PROJECT THAT ABC'S NIGHTLINE FEATURED AS AN EXAMPLE OF URBAN DECAY LAST WEEK HE WON 50 OF THE VOTE WE DROPPED BY MARION GARDENS TUESDAY TO WATCH THE VOTING BERNICE ROBINSON A DEMOCRATIC COMMITTEEWOMAN TOLD US JESSE JACKSON WAS JUST FOLLOWING A PARTY LINE HE DOESN'T KNOW WHAT THE MACHINE DID TO AFRICANAMERICANS HERE CRAIG MORRIS AN UNEMPLOYED RESIDENT SAID SCHUNDLER'S KEEPING SOME HOPE ALIVE WHERE I LIVE MR SCHUNDLER'S PLAN TO FORCE JERSEY CITY'S FEUDAL SCHOOL SYSTEM TO REFORM BY GIVING PARENTS PRIVATE SCHOOL VOUCHERS WAS POPULAR WITH ALL GROUPS TEACHER UNIONS SENT OUT TWO MAILINGS BLASTING VOUCHERS WITH LITTLE EFFECT MR SCHUNDLER WILL LOBBY NEW JERSEY'S REPUBLICAN LEGISLATURE TO PASS A BILL AUTHORIZING VOUCHERS IN JERSEY CITY HE HAS THE BACKING OF CHRISTINE TODD WHITMAN THE LEADING GOP CANDIDATE FOR GOVERNOR WHO SAYS CHOICE WITHIN THE PUBLIC SCHOOL SYSTEM IF THE ENTIRE SYSTEM IS FAILING DOESN'T DO THE CHILDREN ANY GOOD MAYOR SCHUNDLER FACES A MONUMENTAL CHALLENGE IN TAKING HIS CITY OFF THE CRITICAL LIST BUT IT'S FAIR TO SAY THAT IF JERSEY CITY RESPONDS TO HIS TREATMENT ANY AMERICAN INNER CITY CAN MAKE A COMEBACK HIS VICTORY MAY SIGNAL THAT RICHARD RIORDAN THE REPUBLICAN IN NEXT MONTH'S MAYORAL RUNOFF IN LOS ANGELES COULD WIN WITH MORE DIVERSE SUPPORT THAN MANY THINK MORE LOCALLY NEW YORK CITY'S NOMENKLATURA POLITICIANS SHOULD WATCH JERSEY CITY CAREFULLY AFTER ALL IF BRET SCHUNDLER PULLS OFF AN URBAN REVIVAL IN THE SHADOW OF NEW YORK WHAT EXCUSE WILL THEY HAVE FOR THE CONTINUED DECAY OF THE BIG APPLE 9305130070 930513 CREDIT RATINGS EQUITABLE RESOURCES INC PITTSBURGH MOODY'S INVESTORS SERVICE INC SAID IT WILL REVIEW FOR POSSIBLE DOWNGRADE THE DEBT RATINGS OF THIS INTEGRATED ENERGY COMPANY THE MOVE WOULD AFFECT 400 MILLION IN DEBT THE RATINGS UNDER REVIEW ARE THE COMPANY'S SENIOR UNSECURED DEBT AT SINGLEA1 AND THE PRIME 1 SHORTTERM RATING FOR COMMERCIAL PAPER MOODY'S SAID EQUITABLE' EXPANSION PLANS INCLUDING GAS MARKETING INTRASTATE PIPELINES AND OFFSHORE AND SOUTH AMERICAN EXPLORATION ACTIVITIES WILL INCREASE THE COMPANY'S RISK EQUITABLE DECLINED COMMENT 9305130069 930513 BUSINESS BRIEF MATTEL INC TOY FIRM BOOSTS DIVIDEND SLATES BUYBACK OF ITS SHARES THE BOARD OF MATTEL INC RAISED THE TOY COMPANY'S QUARTERLY DIVIDEND TO SIX CENTS A SHARE FROM FIVE CENTS PAYABLE JULY 2 TO STOCK OF RECORD JUNE 11 MATTEL'S BOARD ALSO AUTHORIZED THE REPURCHASE OF AS MANY AS 10 MILLION OF THE COMPANY'S 958 MILLION COMMON SHARES OUTSTANDING OVER THE NEXT FOUR YEARS THIS COMPARES WITH 15 MILLION SHARES BOUGHT BACK IN 1992 JOHN W AMERMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID AT THE EL SEGUNDO CALIF COMPANY'S ANNUAL MEETING THAT THE STEPS REFLECT THE COMPANY'S STRONG PERFORMANCE DOMESTICALLY AND INTERNATIONALLY AND ITS EXPECTATIONS OF CONTINUED GROWTH 9305130068 930513 COMMODITY GIANT MARC RICH & CO DOES BIG DEALS AT BIG RISK IN FORMER USSR DESPITE DUBIOUS REPUTATION FIRM IS CHARGING AHEAD WITH WELLPLACED HELP SUGAR TO OIL TO COPPER TO CASH BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW FOR SEVERAL MONTHS THE KGB'S HEIRS IN THE RUSSIAN CITY OF VOLGOGRAD HAVE BEEN PORING OVER THE BOOKS OF VOLGORICH AN OILREFINING VENTURE PARTLY OWNED BY MARC RICH & CO THE HUGE SWISSBASED TRADING COMPANY SEEKING EVIDENCE OF ILLICIT DEALINGS THE INVESTIGATORS HAVE UNCOVERED ONE IRREGULARITY THOUGH NOT WHAT THEY WERE LOOKING FOR THEY FOUND THAT MARC RICH AND PARTNERS HAD PAID AN EXPORT DUTY TWICE AND THAT THE STATE OWED THEM MONEY THEY ACTUALLY PAID US A REFUND SAYS PETER GULKO AN EXECUTIVE OF THE JOINT VENTURE BETWEEN MARC RICH AND TOTAL CIE FRANCAISE DES PETROLES THAT OWNS 48 OF THE PROJECT BUT THE KGB GUY IS STILL SITTING IN OUR OFFICE TRYING TO FIND SOMETHING IN ALL THE LITTLE PIECES OF PAPER SUCH HARASSMENT TESTIFIES TO MARC RICH & CO'S STATURE AND DUBIOUS REPUTATION IN THE FORMER SOVIET UNION CLAIMING 3 BILLION IN ANNUAL TURNOVER ABOUT A TENTH OF ITS WORLDWIDE BUSINESS IN A REGION WHERE FOUNDATIONS ARE CRUMBLING THE PRIVATELY HELD COMPANY IS BUILDING A VAST TRADING EMPIRE PROBABLY THE BIGGEST IN THE AREA RELYING HEAVILY ON BARTER AND OFFSET TRADING THE COMPANY IS MOVING A WIDE RANGE OF COMMODITIES BACK AND FORTH ACROSS NATIONAL AND ETHNIC BORDERS IN COMPLEX MULTIMILLIONDOLLAR DEALS THAT ENTERPRISES IN THE FRAGMENTED FORMER USSR COULD NEVER MANAGE ALONE I'M AMAZED AT HOW TIMID THE WEST HAS BEEN IN INVESTING IN THE FORMER SOVIET UNION SAYS MR RICH THE COMPANY'S RECLUSIVE 58YEAROLD BILLIONAIRE CHAIRMAN AT THE COMPANY'S GLASSBOX HEADQUARTERS IN ZUG SWITZERLAND WE'VE APPROACHED THIS MARKET VERY AGGRESSIVELY BUT IN THIS MARKET THE BRAND OF CAPITALISM EMERGING FROM THE ASHES OF THE FORMER USSR IS RIDDLED WITH KICKBACKS BRIBES AND OTHER FORMS OF CORRUPTION THAT ANGERS LOCAL CITIZENS THEY ALSO FEAR THAT PRECIOUS RAW MATERIALS ARE BEING SOLD CHEAPLY OVERSEAS IN SUCH AN ENVIRONMENT MARC RICH & CO A NAME TAINTED BY SCANDAL IN THE US AND NOTORIOUS AS FAR AFIELD AS MOSCOW AND CENTRAL ASIA IS AN EASY MARK FOR ALLEGATIONS OF UNSAVORY PRACTICES SCANDAL HAS PLAGUED THE COMPANY SINCE 1983 WHEN MR RICH BECAME A FUGITIVE FROM US JUSTICE HE AND HIS BUSINESS PARTNER PINCUS GREEN FLED TO SWITZERLAND SHORTLY BEFORE THEY WERE INDICTED ON TAXEVASION RACKETEERING AND OTHER CHARGES STEMMING FROM AN ALLEGED INTERNATIONAL OILTRADING SCHEME IN THE FORMER SOVIET UNION MARC RICH & CO HAS BEEN SLAMMED BY WAVES OF NEGATIVE MEDIA REPORTS MOST RECENTLY AS FALLOUT FROM THE POWER STRUGGLE IN THE KREMLIN SOVIETSKAYA ROSSIA AND DEN TWO ULTRANATIONALIST NEWSPAPERS THAT OPPOSE PRESIDENT BORIS YELTSIN'S ECONOMIC POLICIES AND HIS OPEN DOOR TO FOREIGN TRADE HAVE RUN BLISTERING ATTACKS ON THE COMPANY THEY ALLEGE THAT MR RICH USES HIS BUSINESS IN RUSSIA TO LAUNDER DRUG DOLLARS AN ALLEGATION THE COMPANY DENIES EVEN MORE TROUBLESOME ARE CRIMINAL INVESTIGATIONS AND HARASSMENT CAMPAIGNS IN SEVERAL REPUBLICS IN THE MINERALRICH CENTRAL ASIAN REPUBLIC OF KAZAKHSTAN FOR EXAMPLE ROGUE MEMBERS OF THE LOCAL SECURITY MINISTRY LAUNCHED AN UNOFFICIAL CAMPAIGN TO DISCREDIT THE COMPANY THEY QUIETLY PREPARED AND DISTRIBUTED TO THE LOCAL PRESS ARTICLES DESCRIBING THE COMPANY'S ALLEGED MISDEEDS MOST PAPERS REFUSED TO RUN THEM IN MOSCOW THE RUSSIAN GOVERNMENT VOWED LAST YEAR TO SUSPEND BUSINESS TIES WITH MARC RICH & CO PENDING A THOROUGH INVESTIGATION THOUGH IT NEVER FOLLOWED THROUGH AND RUSSIA'S PARLIAMENT AND INTERIOR MINISTRY EACH HAVE COMMITTEES LOOKING INTO THE COMPANY'S ACTIVITIES IN RESPONSE TO PERSISTENT RUMORS THAT IT IS ILLEGALLY EXPORTING RAW MATERIALS AND ABETTING CAPITAL FLIGHT FROM RUSSIA THE US EVEN TRIED TO RECRUIT RUSSIA'S HELP IN BRINGING MR RICH TO JUSTICE FOR YEARS WASHINGTON HAS SOUGHT WITHOUT SUCCESS MR RICH'S EXTRADITION FROM SWITZERLAND THE SWISS HOLD THAT HIS ALLEGED VIOLATIONS AREN'T EXTRADITABLE UNDER THE COUNTRIES' 1900 TREATY LAST YEAR US OFFICIALS PERSUADED THE RUSSIAN GOVERNMENT OF FORMER PRIME MINISTER YEGOR GAIDAR TO TRY TO LURE MR RICH TO RUSSIA OSTENSIBLY FOR MEETINGS ACCORDING TO US SOURCES LOCAL INTERPOL AGENTS WERE TO ARREST HIM IN RUSSIA AND DEPORT HIM TO THE US BUT MR RICH DIDN'T COME DODGING THREAT AFTER THREAT MARC RICH & CO HAS CONTINUED TO PRESS AHEAD IT IS THE NO 1 WESTERN METALS TRADER IN THE REGION AND AMONG THE LEADERS IN EXPORTS OF RUSSIAN CRUDE OIL AND ALUMINUM AND IN IMPORTS OF EUROPEAN GRAIN AND THE COMPANY IS RECRUITING ALLIES AMONG GOVERNMENT OFFICIALS INCLUDING SECURITY PERSONNEL PERHAPS TO SHIELD ITSELF FROM TROUBLE ON A RECENT VISIT TO THE UKRAINIAN CAPITAL OF KIEV SEVERAL MARC RICH EXECUTIVES FROM LONDON SUDDENLY BOARDED THEIR CORPORATE JET FOR AN UNSCHEDULED VISIT TO THE WESTERN CITY OF LVOV THERE THEY MET A TOP GOVERNMENT DECISIONMAKER IN THE GRAIN INDUSTRY BEFITTING THE COMPANY'S SECRETIVE IMAGE THEY REFUSED TO TELL REPORTERS WITH WHOM THEY WERE MEETING IT'S A COURTESY CALL SAID ARI ZALKINDER A LONDONBASED MARC RICH FINANCIAL OFFICER THAT'S ALL YOU HAVE TO KNOW AT MARC RICH & CO'S GLEAMING NEW OFFICE IN CENTRAL MOSCOW DANNY POSEN SITS AT HIS DESK PORING OVER A STACK OF PAPERS MR POSEN UNTIL RECENTLY THE COMPANY'S REGIONAL MANAGER IS ANALYZING TRAVEL LOGS AND OTHER PAPERS FOR EACH AND EVERY LOCAL EMPLOYEE TO MAKE SURE THAT ALL HAVE PAID THEIR TAXES TO THE MOSCOW GOVERNMENT AT MARC RICH THE LAST THING WE WANT TO DO IS ATTRACT ANY UNNECESSARY TROUBLE ESPECIALLY OVER TAXES HE SAYS DRYLY HIS FATHER FELIX POSEN WAS ONE OF THE COMPANY'S SIX FOUNDERS WHO DEFECTED IN 1974 FROM PHILIPP BROTHERS PREDECESSOR TO WHAT IS NOW THE TROUBLED PHIBRO ENERGY INC DIVISION OF SALOMON INC THE TEDIOUS EFFORT OF STRAIGHTENING OUT 120 EMPLOYEES' TAXES SHOWS HOW BUSINESS HAS CHANGED SINCE THE USSR CRUMBLED IN THE PAST TRADE WITH THE SOVIETS WAS DONE THROUGH A ONEMAN OFFICE IN MOSCOW AND VISITS TO THE CENTRALIZED STATE TRADE ORGANIZATION ONCE OR TWICE A YEAR TODAY 15 GOVERNMENTS ARE FUNCTIONING WHERE THERE HAD BEEN ONE MOREOVER LOCAL ENTERPRISES AND REGIONS NOW CAN OFTEN TRADE ON THEIR OWN WITHOUT STATE SUPPORT MARC RICH & CO WHOSE STAFF IN THE WHOLE OF THE FORMER SOVIET UNION HAS GROWN TO 150 PEOPLE FROM 10 IN JUST OVER A YEAR IS TRYING TO PIECE TOGETHER SHATTERED SUPPLY LINKS THAT MOSCOW CONTROLLED WHEN THE USSR WAS ONE GIANT PLANNED ECONOMY IT'S A MADHOUSE MR POSEN SAYS THE BREAKUP OF THE SOVIET UNION HAS CREATED HUGE OPPORTUNITIES BUT THAT DOESN'T MEAN THINGS ARE EASY AT THIS POINT WE'RE ALL KIND OF IN THE DARK BUT WITH STRONG PHYSICAL POSITIONS IN MOST MAJOR COMMODITIES MARC RICH & CO IS HUSTLING TO SQUEEZE PROFITS OUT OF THE NEW OPPORTUNITIES LAST YEAR IT ENGINEERED A REMARKABLE 100 MILLION DEAL INVOLVING ENTERPRISES AND GOVERNMENTS IN FIVE NEWLY INDEPENDENT COUNTRIES HAMPERED BY POLITICAL TENSION AND A LACK OF BUSINESS SAVVY THE VARIOUS PARTNERS COULDN'T HAVE ENGINEERED SUCH A TRADE AMONG THEMSELVES HERE'S HOW THE DEAL WORKED THE COMPANY PURCHASED SOME 70000 TONS OF RAW SUGAR FROM BRAZIL ON THE OPEN MARKET THE SUGAR WAS SHIPPED VIA A BALTIC SEAPORT TO UKRAINE WHERE THROUGH A TOLLING CONTRACT IT WAS PROCESSED AT A LOCAL REFINERY AFTER PAYING THE REFINERY WITH PART OF THE SUGAR MARC RICH & CO SENT 30000 TONS OF REFINED SUGAR 6000 MILES EAST TO SEVERAL HUGE SIBERIAN OIL REFINERIES WHICH NEED SUGAR TO SUPPLY TO THEIR VAST WORK FORCES STRAPPED FOR HARD CURRENCY THE OIL REFINERIES OFFERED TO PAY FOR THE SUGAR WITH OIL PRODUCTS MUCH OF WHAT WAS AVAILABLE HOWEVER WAS LOWGRADE A76 GASOLINE WHICH HAS FEW EXPORT MARKETS BUT ONE MARKET IS MONGOLIA WITH WHICH MARC RICH & CO HAS LONG TRADED THE COMPANY MOVED 130000 TONS OF OIL PRODUCTS THERE IN PAYMENT THE MONGOLIANS TURNED OVER 35000 TONS OF COPPER CONCENTRATE THE COMPANY SENT MOST OF THAT BACK ACROSS THE BORDER TO KAZAKHSTAN WHERE IT WAS REFINED INTO COPPER METAL THEN THE METAL WAS SHIPPED WESTWARD TO A BALTIC PORT AND OUT TO THE WORLD MARKET WHERE SEVERAL MONTHS AFTER THE DEAL BEGAN THE COMPANY EARNED A HARDCURRENCY PROFIT IT WAS A VERY SOVIET DEAL WHEN YOU DON'T HAVE MONEY YOU PAY WITH WHAT YOU DO HAVE SAYS NICK JENKINS A 25YEAROLD ENGLISHMAN WHO RUNS SUGAR OPERATIONS IN THE COMPANY'S MOSCOW OFFICE MARC RICH & CO HAS BUILT UP AMONG ITS TRADE AND INVESTMENT PARTNERS A SENSE OF LOYALTY RARELY SEEN IN THE REGION CRITICS INCLUDING ITS COMPETITORS CHARGE THAT THE SWISS COMPANY BUYS SUCH LOYALTY WITH BRIBES BUT IT DENIES THE ALLEGATIONS AND NO EVIDENCE HAS SURFACED TO SUPPORT THEM RATHER COMPANY OFFICIALS CONTEND ITS SUCCESS IS BASED ON THE BIG RISKS THAT IT TAKES BUT MOST FOREIGN INVESTORS SHUN FOR ALL WOULDBE FOREIGN BUSINESSPEOPLE IN THE REGION THE CRITICAL PROBLEM IS THE SHORTAGE OF HARD CURRENCIES SO A GREAT DEAL OF TRADE TAKES THE FORM OF BARTER AND THAT FAVORS A COMPANY SUCH AS MARC RICH WHICH ACTIVELY TRADES IN MOST MAJOR COMMODITIES TYPICALLY THE COMPANY IMPORTS A COMMODITY UP FRONT AND THEN IN EFFECT PROVIDES BRIDGE FINANCING FOR SEVERAL MONTHS UNTIL THE BUYER SUPPLIES THE OFFSET COMMODITY BASICALLY WE PLAY THE ROLE OF FINANCIER IN THE REGION SAYS MR ZALKINDER IN LONDON NOBODY ELSE IS GOING TO DO IT SOMETIMES THE COMPANY GETS BURNED LAST YEAR IT SIGNED A CONTRACT TO SHIP 40000 TONS OF GRAIN TO KAZAKHSTAN IN RETURN FOR METALS BUT JUST AS SEVERAL GRAIN SHIPS WERE PULLING INTO A BALTIC PORT WHERE TRAINS WERE WAITING TO MOVE THE CARGO 3000 MILES EASTWARD KAZAKHSTAN SUDDENLY CANCELED THE DEAL THERE ARE TIMES HERE WHEN A SIGNED CONTRACT DOESN'T MEAN A WHOLE LOT MR POSEN SAYS YOU JUST TRY TO BE AS AGILE AS POSSIBLE RATHER THAN SUING AND PERHAPS SEVERING ITS TIES WITH ITS TRADING PARTNER THE COMPANY TURNED THE SHIPS AROUND AND FOUND BUYERS ELSEWHERE THOUGH AT A LOSS THE COMPANY'S AGILITY INCLUDES FENDING OFF CHARGES OF CROOKED DEALINGS IN UKRAINE MARC RICH'S LOCAL OILINDUSTRY PARTNER IS UNDER INVESTIGATION FOR ALLEGEDLY EXPORTING ILLEGALLY 7 MILLION OF OIL PRODUCTS THAT WERE SUPPOSED TO REMAIN IN THE OILSTRAPPED COUNTRY MARC RICH OFFICIALS DENY KNOWLEDGE OF ANY IMPROPRIETIES AND NOTE THAT THE SWISS COMPANY ITSELF WASN'T NAMED IN ANY OF THE ALLEGATIONS IN KAZAKHSTAN MEANWHILE MARC RICH & CO HAS BEEN TIED TO A SCANDAL THAT NEARLY TOPPLED ONE OF THE REPUBLIC'S MOST POWERFUL FACTORY DIRECTORS A DOCUMENT PREPARED BY AN INVESTIGATIVE COMMITTEE FORMED BY KAZAKHSTAN'S CABINET OF MINISTERS ACCUSES THE FACTORY BALKHASHMED OF SELLING CATHODE COPPER TO MARC RICH AT PRICES FAR BELOW UNIVERSALLY RECOGNIZED DISCOUNTS FROM LONDON METAL EXCHANGE PRICES THE PRICES MARC RICH & CO PAID WERE SAID TO HAVE DEPRIVED KAZAKHSTAN OF 2 MILLION IN HARD CURRENCY THE REPORT ALSO ACCUSES THE FACTORY MARC RICH & CO'S PRIMARY PARTNER IN THE REPUBLIC OF ILLEGALLY KEEPING 77 MILLION IN CONCEALED PROFITS IN MARC RICH BANK ACCOUNTS ALL OVER EUROPE THAT WOULD VIOLATE A DECREE REQUIRING THAT HARDCURRENCY RECEIPTS BE KEPT IN KAZAKHSTAN WILLY STROTHOTTE WHO RECENTLY REPLACED MR RICH AS CHIEF EXECUTIVE DENIES THAT THE COMPANY HAS BEEN INVOLVED IN ANY WRONGDOING IN RESPONSE TO THIS AND SIMILAR ACCUSATIONS HE SAYS WE SOMETIMES FIND OURSELVES IN THE MIDDLE OF DISPUTES BETWEEN COMPETING ENTITIES THAT WANT TO TAKE CONTROL OVER RESOURCES MARC RICH & CO IS CERTAIN TO WEATHER THIS STORM TOO KAZAKHSTAN'S PRESIDENT NURSULTAN NAZARBAYEV MET WITH MR RICH AT THIS YEAR'S WORLD ECONOMIC FORUM IN DAVOS SWITZERLAND WHAT THEY TALKED ABOUT ISN'T KNOWN BUT MR NAZARBAYEV RETURNED HOME PRAISING THE COMPANY AND HIS GOVERNMENT PROMPTLY URGED NATIONAL TRADING COMPANIES TO BEGIN DEALING DIRECTLY WITH IT THAT WASN'T THE FIRST TIME POWERFUL FRIENDS HAVE HELPED THE COMPANY IN THE FORMER SOVIET UNION WHEN THE RUSSIAN GOVERNMENT BEGAN INVESTIGATING THE COMPANY'S ACTIVITIES LAST YEAR MARC RICH ASKED SOME OF ITS LEADING BANKERS TO SEND TESTIMONIALS ON ITS BEHALF IN MAY PRESIDENT YELTSIN RECEIVED GLOWING ACCOUNTS FROM BHFBANK OF FRANKFURT UNION BANK OF SWITZERLAND AND BANQUE INDOSUEZ'S LONDON BRANCH DESPITE A REPETITIVE FORMLETTER QUALITY THE MESSAGES HELPED BOLSTER THE COMPANY'S CASE AT A CRITICAL MOMENT BUT SUCH HELP WON'T GUARANTEE PROFITS IF THE REGION'S PROTECTIONIST LOBBIES CONTINUE TO FLEX THEIR MUSCLES MARC RICH & CO STUNNED THE OIL INDUSTRY LAST YEAR WHEN ITS RUSSIAN OILFIELD PROJECT IN USINSK JUST BELOW THE ARCTIC CIRCLE WAS EXEMPTED FROM THE STANDARD EXPORT DUTY ON CRUDE OIL BUT THE COMPANY COULDN'T ESCAPE A NEW DUTY AVERAGING ABOUT 35 ON EXPORTS OF OIL PRODUCTS THAT TAX PUT IN FINANCIAL TROUBLE SEVERAL OF THE COMPANY'S PIONEER DIRECT INVESTMENTS INCLUDING THE REFINERY PROJECT IN VOLGOGRAD WHERE MARC RICH AND TOTAL EXPORT OIL PRODUCTS EXTRACTED FROM THE REFINERY'S WASTE WATER WHY TAX US AT ALL SAYS MR GULKO THE REFINERY EXECUTIVE IF WE HAVE TO SHUT DOWN EVERYONE LOSES INCLUDING OUR RUSSIAN PARTNERS AND THE RUSSIAN PEOPLE THEY JUST DON'T UNDERSTAND THAT 9305130067 930513 BUSINESS BRIEF ASEA BROWN BOVERI INC NEW TECHNOLOGIES REDUCE EMISSIONS AT POWER PLANTS ASEA BROWN BOVERI INC UNVEILED TWO NEW TECHNOLOGIES DESIGNED TO REDUCE POLLUTION IN POWER PLANTS THAT BURN GAS OR COAL THE SYSTEMS SUBSTANTIALLY CUT NITRIC OXIDE EMISSIONS BY CONTROLLING THE INSERTION OF FUEL AND AIR BEING USED IN THE COMBUSTION PROCESS ACCORDING TO ABB POWER PLANT LABORATORIES NITRIC OXIDE EMISSIONS FOR A STANDARD COAL PLANT COULD BE REDUCED BY MORE THAN 70 THE NEW TECHNOLOGIES WOULD HELP PLANTS MEET INCREASINGLY STRINGENT NITRICOXIDEEMISSIONS STANDARDS ESTABLISHED BY THE 1990 CLEAN AIR ACT SUCH EMISSIONS ARE WIDELY CONSIDERED CONTRIBUTORS TO ACID RAIN AND SMOG ASEA BROWN BOVERI STAMFORD CONN IS A US UNIT OF ABB ASEA BROWN BOVERI LTD OF ZURICH WHICH HAS INTERESTS IN POWER PROCESS ENVIRONMENTAL AND INDUSTRIAL APPLICATIONS 9305130066 930513 THE FAILURE OF AMERICAN THEATER BY MELANIE KIRKPATRICK THE ANGEL THAT SWOOPS DOWN FROM THE RAFTERS IN THE CLOSING SCENE OF ANGELS IN AMERICA MILLENNIUM APPROACHES MIGHT BE PRAYING FOR THE FATE OF THE AMERICAN THEATER NO PLAY IN RECENT YEARS HAS HIT BROADWAY WITH MORE CRITICAL ACCLAIM OR ADVANCE HYPE EARLIER PRODUCTIONS IN LONDON SAN FRANCISCO AND LOS ANGELES RECEIVED RAVE NOTICES THE DAY OF ITS FIRST NEW YORK PREVIEW PLAYWRIGHT TONY KUSHNER WON THE PULITZER PRIZE FOR DRAMA TUESDAY IT WON THE DRAMA CRITICS CIRCLE AWARD FOR BEST PLAY NOW ANGELS FACES ITS MOST CRUCIAL TEST WITH THE PUBLIC WILL THEATERGOERS WHO PAY 60 TO MARVEL AT THE TECHNICAL WIZARDRY OF THE PHANTOM OF THE OPERA OR GLORY IN THE HEAVENLY SINGING AND DANCING OF GUYS AND DOLLS BE WILLING TO SHELL OUT 60 FOR A 3 1/2HOURLONG DRAMA ABOUT AIDS IT HAS LONG BEEN FASHIONABLE IN NEW YORK'S INTELLECTUAL CIRCLES TO SCORN POPULAR THEATRICAL TASTES THIS INTELLIGENTSIA DEPLORES THE PUBLIC'S LOVE AFFAIR WITH ENGLISH MUSICALS AMERICAN REVIVALS AND NEIL SIMON COMEDIES SERIOUS DRAMA THEY INTONE DOESN'T HAVE A CHANCE WITH A PUBLIC INTERESTED ONLY IN MERE ENTERTAINMENT SOME PUNDITS ARE ALREADY PREDICTING ANGELS WILL BE A COMMERCIAL FAILURE WARNING THAT THE PUBLIC DOESN'T VALUE PLAYS ABOUT IDEAS THE MORE APPROPRIATE QUESTION IS WHETHER THE PUBLIC VALUES THESE IDEAS PEOPLE LONG AGO CURTAILED GOING TO THE THEATER FOR THE SAME REASON THEY QUIT GOING TO THE MOVIES AND ARE SWITCHING OFF BROADCAST TELEVISION THEY DON'T LIKE THE MESSAGES THEY FIND THERE IN THE THEATER THAT MESSAGE SOMETIMES IS THAT ART IS INTERESTING FOR ART'S SAKE WHICH USUALLY MEANS IT'S INCOMPREHENSIBLE OR PRETENTIOUS OR BOTH THIS IS THEATER FOR EGGHEADS THERE'S ALWAYS BEEN A LIMITED AUDIENCE FOR SUCH SHOWS AS A GENDERREVERSED LEAR OR A PEER GYNT IN SWEDISH THE HIGHBROW THEATRICAL EVENT OF THE FALL SEASON WAS LES ATRIDES A 10HOUR MARATHON OF FOUR GREEK TRAGEDIES PERFORMED IN FRENCH THE NEW YORK PRODUCERS WISELY LIMITED THIS CROWDPLEASER TO A FEW PERFORMANCES WHICH WERE SO HEAVILY PATRONIZED BY THEATER INSIDERS THAT THE AIRKISSING AND GOSSIPING AT INTERMISSION TURNED IT INTO A HUGE COCKTAIL PARTY FAR MORE TROUBLING IS THE HOMOGENEITY OF VIEWS FOUND IN THE THEATER TODAY WHERE CERTAIN WELLESTABLISHED ORTHODOXIES REIGN SUPREME BLACK PLAYWRIGHT MICHAEL HENRY BROWN COMPLAINED TO NEWSDAY RECENTLY THAT NO NEW YORK PRODUCER WILL TOUCH HIS PLAY THE DAY THE BRONX DIED PRODUCED AT NEW HAVEN'S LONG WHARF THEATER A FREQUENT CONDUIT TO NEW YORK IT PUTS THE BLAME FOR THE BRONX'S DECAY ON THE PEOPLE WHO LIVE THERE THE POWERS IN THE NEW YORK THEATER HE SAYS HAVE A CERTAIN VISION OF ETHNIC GROUPS AND IF YOU DON'T FIT IN A CERTAIN BOX THAT'S IT WHEN HE REWROTE THE GOODBYE GIRL FOR THE STAGE THIS YEAR NEIL SIMON SEEMINGLY FEARFUL OF BEING CALLED HOMOPHOBIC TURNED A COMIC CHARACTER WHO HAD BEEN GAY IN THE MOVIE INTO A HUNGARIAN TWO YEARS AGO THE NEW YORK PRODUCTION OF MISS SAIGON WAS ALMOST CANCELED OVER LOCAL OBJECTIONS TO THE CASTING OF A WHITE ACTOR IN A EURASIAN PART THE THEATER WHICH AT ITS BEST IS BOTH A PURVEYOR OF IDEAS AND A SOURCE OF ENTERTAINMENT HAS BECOME LARGELY IRRELEVANT TO THE SOCIETYATLARGE THEATER FOR INTEREST GROUPS TOURISTS HOMOSEXUALS BLACKS JEWS HISPANICS CONTINUES TO FLOURISH BUT RARER ARE PLAYS THAT SPEAK TO A WIDER AUDIENCE WHICH BRINGS US TO ANGELS JUST WHAT IS IT ABOUT FIRST AND FOREMOST ANGELS IS AN AFFIRMATION AND CELEBRATION OF HOMOSEXUALITY THIS IS THE MOST COMMONPLACE OF THOUGHTS IN THE THEATER TODAY FALSETTOS AND KISS OF THE SPIDER WOMAN ARE TWO GAY MUSICAL HITS ON BROADWAY AND OFFBROADWAY HAS BEEN HOME TO MANY OTHER GAY SHOWS MOST MAJOR PLAYWRIGHTS BOTH MAINSTREAM AND GAY HAVE WRITTEN ABOUT HOMOSEXUALITY AIDS BY FAR THE MOST POPULAR TOPIC FOR PLAYWRIGHTS IN RECENT YEARS IS AN INHERENTLY DRAMATIC SUBJECT AND ANGELS' PRESENTATION OF THE PHYSICAL HORRORS OF THE DISEASE IS SEARING AS A TEARJERKER ANGELS IS A SUCCESS IT IS A UNIVERSAL STORY ABOUT EMOTIONAL COURAGE AND THE POWER OF LOVE A GENTLE YOUNG MAN NAMED PRIOR CONTRACTS AIDS AND HIS PARTNER LOUIS QUESTIONS WHETHER HE HAS THE FORTITUDE TO WATCH HIM DIE THIS IS A MORAL DILEMMA WITH EQUAL RELEVANCE FOR STRAIGHTS AND GAYS BUT THE PLAY TAKES NO INTELLECTUAL RISKS IT PRESENTS THE AIDS EPIDEMIC AS IT'S ALMOST ALWAYS PRESENTED AS A NATURAL DISASTER ALONG THE LINES OF AN EARTHQUAKE OR A HURRICANE THERE HAS YET TO BE A SIGNIFICANT AIDS PLAY THAT ADDRESSES THE EXPLOSIVE ISSUE OF PERSONAL RESPONSIBILITY AND THE INTERESTING MORAL QUESTION OF A LOVER'S RESPONSIBILITY TO HIS PARTNER IS OVERSHADOWED BY TWO PLOTS THAT RUN PARALLEL TO THE LOVE STORY ONE CONCERNS JOE A CLEANCUT MARRIED MORMON LAWYER WHO IS SECRETLY GAY THE SECOND IS ABOUT ROY COHN THE REALLIFE REPUBLICAN LAWYERPOLITICAL FIXER WHO HIDES HIS HOMOSEXUALITY JOE'S RELIGION AND ROY COHN'S POLITICS ARE PRESENTED AS EVIL FORCES THAT KEEP THE TWO MEN FROM CELEBRATING THEIR TRUE NATURES IN THE WORLD ACCORDING TO ANGELS GOD AND THE GOP ARE THE TWO GREAT TABOOS ANGELS' VISION OF HELL IS A SCENE SET IN A REDPLUSH COCKTAIL LOUNGE IN WASHINGTON WHERE A DIABOLICAL ROY COHN OFFERS JOE THE TEMPTATION OF A JOB IN THE REAGAN JUSTICE DEPARTMENT GOING TO WORK FOR ED MEESE IS PRESENTED AS THE MORAL EQUIVALENT OF SELLING ONE'S SOUL TO SATAN ABOVE ALL ANGELS IS A POLITICAL POLEMIC ON THE '80S ULTIMATELY WHAT AUDIENCES THINK ABOUT THE PLAY WILL DEPEND ON WHAT THEY THOUGHT BEFORE THEY ENTERED THE THEATER ALWAYS A BAD SIGN IF THEY VIEW THE 1980S AS A DECADE OF DESPAIR THEY'LL PROBABLY LIKE ANGELS IF THEY SEE IT AS A TIME OF PROGRESS AND NATIONAL RENEWAL THEY'LL BE APT TO DISMISS IT SET IN 1985 THE PLAY'S UNDERLYING PREMISE IS THAT REAGAN'S PLAGUERIDDEN AMERICA IS ON THE BRINK OF APOCALYPSE EDWIN WILSON THE JOURNAL CRITIC WHO REVIEWED THE LONDON AND NEW YORK PRODUCTIONS CALLED IT A DEEPLY FELT BUT DEFINITELY LIMITED VISION THERE ARE MANY REASONS OTHER THAN HACKNEYED IDEOLOGY FOR THE SORRY PLIGHT OF THE AMERICAN THEATER TODAY HIGH PRODUCTION COSTS DETER BACKERS FROM TAKING CHANCES ON PLAYS THIS IS ESPECIALLY TRUE ON BROADWAY WHERE RAPACIOUS THEATRICAL UNIONS IN COLLABORATION WITH A CYNICAL SEMIMONOPOLY OF THEATER OWNERS HAVE REQUIRED PRODUCERS TO PAY FOR A FULL ORCHESTRA IN A MUSICAL THAT NEEDS ONLY A PIANO PLAYER OR TO HIRE USHERS TO SERVE A BALCONY THAT IS CLOSED THE PROTECTIONIST ACTORS EQUITY KEEPS BRITISH TALENT OFF AMERICAN STAGES DESPITE THESE PROBLEMS THERE'S NO LACK OF THEATER IN NEW YORK TONIGHT AT 8 THE CURTAIN WILL RISE ON 22 SHOWS ON BROADWAY AND ROUGHLY 80 OFFBROADWAY A FEW OF THE HITS DO TAKE SOME INTELLECTUAL RISKS FOR EXAMPLE OLEANNA DAVID MAMET'S DISCONCERTING TALE OF SEXUAL HARASSMENT AND JELLY'S LAST JAM ABOUT RIVALRY BETWEEN LIGHTSKINNED AND DARKSKINNED BLACKS THE BIGGEST HIT OF ALL IS TOMMY A THEATRICAL VERSION OF THE WHO'S 1969 ROCK OPERA THE STORY OF A DEAF DUMB AND BLIND CHILD WHO BECOMES A PINBALL WIZARD LIKE ANGELS IT IS TECHNICALLY DAZZLING AND LIKE ANGELS IT HAS ELECTRIFYING PERFORMANCES THAT HAVE WON CRITICAL PRAISE BUT THE VISIONS ANIMATING THE TWO PLAYS COULDN'T BE MORE DIFFERENT TOMMY UPDATED FOR THE '90S NO LONGER CELEBRATES SEX AND DRUGS IT HAS BEEN RECAST AS A TRIBUTE TO FAMILY LIFE TOMMY'S PARENTS ARE PORTRAYED AS HEROIC IN THEIR EFFORTS TO CURE THEIR CHILD IN THE EMOTIONAL FINAL SCENE TOMMY NOW A SUPERSTAR LEAVES THE SPOTLIGHT TO RETURN TO HIS WELCOMING MOTHER AND FATHER THE SINGING AND THE DANCING AND THE TECHNICAL VIRTUOSITY STEAL THE SHOW BUT IT ALL ADDS UP TO MORE THAN MINDLESS ENTERTAINMENT TOMMY DOES WHAT THE BEST THEATER DOES ENTERTAIN AND INSPIRE AND OTHERWISE ENRICH OUR LIVES ANGELS FOR ITS PART IS ENGAGING AGITPROP MR KUSHNER IS JUST ANOTHER LIBERAL PROPHET OF DOOM HE IS THE PAUL KENNEDY OF PLAYWRIGHTS SPEWING THE RHETORIC OF DECAY AND DECLINE THAT MAY BE WHAT THE THEATRICAL ELITES TALK ABOUT AT INTERMISSION BUT IT'S NOT WHY ORDINARY FOLKS GO TO THE THEATER MS KIRKPATRICK IS ASSISTANT EDITOR OF THE EDITORIAL PAGE AND THE JOURNAL'S OFFBROADWAY CRITIC 9305130065 930513 ECONOMY HOUSE DEMOCRATS AGREE TO REVISIONS AIMED AT GETTING SUPPORT FOR TAX PLAN BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE DEMOCRATIC TAXWRITERS TENTATIVELY AGREED TO PARTLY EXEMPT FARMERS AND THE ALUMINUM INDUSTRY FROM PRESIDENT CLINTON'S PROPOSED ENERGY TAX AND TO RAISE THE TAX RATE ON OTHERS TO MAKE UP THE LOST REVENUE THOSE CHANGES AND OTHERS ARE AIMED AT BUILDING SOME SUPPORT FOR THE OVERALL TAX PACKAGE AMONG BIG AND SMALL BUSINESSES AND AMONG LAWMAKERS SEEKING TO PLEASE CONSTITUENTS IN THEIR STATES BUT COULD SPARK CRITICISM IF THE CHANGES ARE SEEN AS CATERING TO SPECIAL INTERESTS DEMOCRATS ON THE HOUSE WAYS AND MEANS COMMITTEE WILL MEET AGAIN BEHIND CLOSED DOORS TODAY TO COMPLETE WORK AND THEN MUST CONVENE WITH REPUBLICANS FOR A VOTE THE DEMOCRATS WHO OUTNUMBER REPUBLICANS 24 TO 14 ON THE PANEL TENTATIVELY DECIDED TO EXEMPT THE ALUMINUM AND CHLORALKALI INDUSTRIES FROM 50 OF THE TAX THEY WOULD OWE ON ENERGY CONSUMED BOTH INDUSTRIES HAD ARGUED THAT ELECTRICITY IS NOT USED IN THEIR MANUFACTURING PROCESSES AS A FUEL SOURCE BUT AS A COMPONENT NECESSARY TO PRODUCTION THE ALUMINUM EXEMPTION HAS BEEN HEAVILY LOBBIED 17 STATES HAVE ALUMINUM PLANTS AND KAISER ALUMINUM IS THE LARGEST PRIVATE EMPLOYER IN THE DISTRICT OF HOUSE SPEAKER THOMAS FOLEY D WASH THE ENERGY TAX AS PROPOSED BY THE PRESIDENT WOULD RAISE 705 BILLION OVER FIVE YEARS BY LEVYING A TAX OF 257 CENTS PER MILLION BRITISH THERMAL UNITS ON NEARLY ALL FORMS OF ENERGY AND A SURCHARGE OF 342 CENTS PER MILLION BTUS ON MOST PETROLEUM PRODUCTS THE TENTATIVE HOUSE PLAN WOULD BOOST THOSE RATES SLIGHTLY ACCORDING TO THOSE FAMILIAR WITH THE WAYS AND MEANS DELIBERATIONS BTUS MEASURE THE HEAT CONTENT OF VARIOUS FUELS THE COMMITTEE DEMOCRATS ALSO WOULD EXEMPT DEISEL FUEL USED FOR AGRICULTURE TO MAKE UP THE REVENUE THE HOUSE PANEL IS DISCUSSING A MOVE TO REVOKE AN EXEMPTION FOR ETHANOL AND METHANOL THAT THE ADMINISTRATION NEGOTIATED EARLIER TO ASSAUGE FARMSTATE SENATORS AS EXPECTED THE DEMOCRATS ALSO TENTATIVELY AGREED TO KILL MR CLINTON'S PROPOSED INVESTMENT TAX CREDITS WHICH HAD LITTLE SUPPORT IN THE BUSINESS COMMUNITY AND HIS PROPOSAL TO RAISE TAXES ON MULTINATIONAL CORPORATIONS' FOREIGN ROYALTY INCOME THE PANEL AGREED TO RAISE THE CORPORATE INCOME TAX RATE JUST ONE PERCENTAGE POINT TO 35 INSTEAD OF 36 AS MR CLINTON SOUGHT AND TO ALLOW SMALL BUSINESS TO WRITE OFF AS MUCH AS 25000 A YEAR IN EQUIPMENT PURCHASES UP FROM 10000 NOW THE PANEL ALSO IS EXPECTED TO PROVIDE A MORE GENEROUS TAX TREATMENT FOR PASSIVE LOSSES ON RENTAL INCOME THAN MR CLINTON PROPOSED AS IN A BILL LAST YEAR THAT PRESIDENT BUSH VETOED FOR OTHER REASONS THE PENDING PROPOSAL WOULD ALLOW REAL ESTATE ENTREPRENEURS TO USE THEIR LOSSES TO OFFSET OTHER INCOME FOR TAX PURPOSES THE REAL ESTATE INDUSTRY ALSO WOULD GET RELIEF FROM THE SOCALLED DISCHARGEOFINDEBTEDNESS RULES FOR CERTAIN TRANSACTIONS TO HELP PAY FOR THE CHANGES THE TAX PANEL IS CONSIDERING EXTENDING THE DEPRECIATION PERIOD FOR COMMERCIAL REAL ESTATE BY ONE OR TWO YEARS BEYOND THE 37 YEARS MR CLINTON PROPOSED THE CURRENT DEPRECIATION PERIOD IS 31 1/2 YEARS REQUIRE UTILITIES TO BASE THE ENERGY TAX ON THE INDIVIDUAL UTILITY'S MIX OF FUELS ONE OF THE ADMINISTRATION'S MAJOR OBJECTIVES INSTEAD OF SETTING A UNIFORM NATIONAL RATE AS THE INDUSTRY WANTED THE ADMINISTRATION WANTS TO ENCOURAGE THE USE OF CLEANER FUELS BY ITS VERSION PROVIDE FOR COLLECTING THE ENERGY TAX FROM UTILITY CUSTOMERS DIRECTLY ON THEIR BILLS WITHOUT INTERVENTION BY STATE REGULATORS THE CLINTON ADMINISTRATION HAD WANTED GAS AND ELECTRIC UTILITIES TO PAY THE TAX AND SEEK REGULATORS' APPROVAL TO PASS ON THE COSTS HALVE A PROPOSED EXCISE TAX INCREASE FOR BARGE TRAVEL ON INLAND WATERWAYS CHAIRMAN DAN ROSTENKOWSKI D ILL HAD PUSHED HARD TO HOLD DOWN THE CORPORATE RATE INCREASE AND TO DROP THE TAX INCREASE ON OVERSEAS ROYALTY INCOME THE AIM WAS TO CREATE A CORPORATE COALITION BACKING THE BILL MUCH AS HE DID IN 1986 FOR THE LANDMARK ACT OVERHAULING THE TAX CODE THE RATE WAS ONE OF THE LAST CHANGES NEGOTIATED WITH THE ADMINISTRATION AT ONE POINT REP ROSTENKOWSKI TURNED DOWN MR CLINTON'S COUNTEROFFER OF A 35 1/4 RATE I THINK THE ADMINISTRATION NEVER HAVING WRITTEN A TAX BILL DOESN'T REALIZE THAT YOU HAVE TO GET SUPPORTERS OUT THERE AMONG THE PUBLIC AND IN THE BUSINESS COMMUNITY NOT JUST IN THE HOUSE AND SENATE REP ROSTENKOWSKI SAID HE HAS TOLD COLLEAGUES PRIVATELY THAT IF HE SUCCEEDS THE COALITION FOR THE BILL COULD INCLUDE MORE THAN 50 MAJOR CORPORATIONS AMONG THEM ARE INTERNATIONAL BUSINESS MACHINES CORP GENERAL ELECTRIC CO GENERAL MOTORS CORP GENERAL MILLS INC KELLOGG CO EMERSON ELECTRIC CO AND PROCTER & GAMBLE CO THE COMMITTEE HAD CONSIDERED A 20000 INVESTMENT WRITEOFF FOR SMALL BUSINESSES BUT MR CLINTON INSISTED ON 25000 SINCE THE PROVISION IS THE ONLY REMAINING ELEMENT THAT CAN BE SEEN AS A WAY TO STIMULATE THE ECONOMY NOW THAT THE INVESTMENT TAX CREDIT IS DEAD THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE LARGEST ORGANIZATION OF SMALL BUSINESSES APPLAUDED THE CHANGE BUT STILL WON'T SUPPORT THE OVERALL PACKAGE MIKE ROUSH THE FEDERATION'S SENATE LOBBYIST SAID THE GROUP'S MEMBERS STILL OPPOSE THE ENERGY TAX AND INCREASES IN INDIVIDUAL INCOME TAX RATES DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9305130064 930513 GE UNIT AGREES TO BAILOUT PLAN FOR GPA GROUP ACCORD CALLS FOR PLANE SALES WITH OPTION TO ACQUIRE IRISH LEASING COMPANY BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL GPA GROUP PLC REACHED A FINANCING AGREEMENT WITH GE CAPITAL CORP THAT COULD RESULT IN THE GENERAL ELECTRIC CO UNIT ACQUIRING THE WORLD'S LARGEST AIRCRAFT LEASING COMPANY UNDER TERMS OF THE ACCORD GE CAPITAL WOULD ACQUIRE 43 NEW AIRCRAFT FROM GPA FOR 135 BILLION WITH AN OPTION TO BUY 60 TO 80 OF THE COMPANY'S EQUITY BY MARCH 1997 THE PRICE OF EXERCISING THAT OPTION WASN'T DISCLOSED IN THE MEANTIME GE CAPITAL IS CLOSE TO WORKING OUT A PLAN IN WHICH IT WOULD ESSENTIALLY MANAGE SHANNON IRELANDBASED GPA THE FINANCING AGREEMENT WHICH APPEARS TO END MONTHS OF UNCERTAINTY FOR GPA STILL DEPENDS ON GPA'S RAISING 150 MILLION IN ADDITIONAL EQUITY FROM SHAREHOLDERS AND LENDERS BUT BECAUSE OF THE ACCORD WITH GE CAPITAL GPA OFFICIALS EXPECT TO BE ABLE TO RAISE THE MONEY UNTIL NOW GPA HAD BEEN STRUGGLING TO RAISE 200 MILLION IN EQUITY TO SATISFY ITS BANK LENDERS THE GE ACCORD ALSO MAKES IT MORE LIKELY THAT GPA WILL BE ABLE TO MAKE ITS COMING BOND PAYMENTS PEOPLE CLOSE TO THE COMPANY SAY FOR NOW GPA IS SEEKING A 100 MILLION BRIDGE LOAN TO TIDE THE COMPANY OVER UNTIL THE GE DEAL IS SIGNED THE COMPANY IS MEETING WITH 300 OF ITS LARGEST BONDHOLDERS TODAY IN NEW YORK UNDER TERMS OF THE TRANSACTION GPA WOULDN'T RECEIVE THE FULL 135 BILLION FOR THE AIRCRAFT BECAUSE IT ACTUALLY OWNS JUST 23 OF THEM THE REMAINING 22 ARE CLOSE TO BEING DELIVERED WHICH MEANS GPA HAS PAID FOR A PORTION OF THEM AND WILL RECEIVE PAYMENTS MADE TO MANUFACTURERS TOTAL PROCEEDS TO THE COMPANY WEREN'T DISCLOSED ALL THE PLANES HAVE BEEN LEASED TO CLIENTS IN ADDITION GE CAPITAL IS DISCUSSING A PLAN TO ESSENTIALLY MANAGE GPA THE AGREEMENT WHICH COULD COME WITHIN A MATTER OF DAYS WOULD ALLOW GE CAPITAL TO ADMINISTER GPA WITHOUT TAKING ON ANY OF ITS 55 BILLION IN DEBT GE HAS ALSO AGREED TO HELP GPA SELL UP TO 2 BILLION IN SECURITIES BACKED BY AIRCRAFT LEASES BY 1995 IF AGREED THE CLOSER LONGTERM ASSOCIATION WE ARE DISCUSSING WILL CREATE A POWERFUL GLOBAL ALLIANCE WHICH WILL LEAD THE AIRCRAFT LEASING AND FINANCING INDUSTRY SAID TONY RYAN CHAIRMAN OF GPA THIS TRANSACTION IS STRATEGIC FOR GE CAPITAL BECAUSE IT SUBSTANTIALLY EXPANDS OUR PRESENCE IN THE GLOBAL LEASING BUSINESS SAID DENIS J NAYDEN EXECUTIVE VICE PRESIDENT AT GE CAPITAL GE CAPITAL ALREADY HAS A LARGE PRESENCE IN THE AIRCRAFTLEASING MARKET AND OWNS MORE THAN 400 PLANES THE TURN OF EVENTS COMES LESS THAN A WEEK BEFORE GPA MIGHT HAVE HAD TO SEEK BANKRUPTCYCOURT PROTECTION WITH THE CAPITAL MARKETS DRYING UP LAST YEAR AND LARGE DEBT PAYMENTS LOOMING GPA HAS BEEN SEEKING CONCESSIONS FROM LENDERS AND 200 MILLION IN NEW EQUITY AS PART OF A PLAN TO KEEP THE COMPANY AFLOAT AGREEMENTS ALREADY HAVE BEEN REACHED WITH MANUFACTURERS TO DEFER OR CANCEL BILLIONS IN AIRCRAFT ORDERS ALL THE CONCESSIONS ARE DEPENDENT ON OTHER PARTIES REACHING SETTLEMENTS COMPANY OFFICIALS SAY THEY ARE CONFIDENT THAT EXISTING SHAREHOLDERS AND LENDERS WILL COME UP WITH THE FUNDS NECESSARY FOR THE GE DEAL TO PROCEED EXISTING SHAREHOLDERS ARE BELIEVED TO HAVE ALREADY COMMITTED 100 MILLION SO THAT GPA LIKELY WOULD ONLY HAVE TO RAISE A FURTHER 50 MILLION WITH THE GE DEAL CLOSE TO BEING SIGNED GPA STILL NEEDS TO BRING BANK LENDERS ON BOARD THE TRANSATLANTIC EFFORT TO SHORE UP ITS BALANCE SHEET LENDERS SAY THE COMPANY IS ASKING LENDERS TO DEFER 1 BILLION IN PRINCIPAL PAYMENTS UNTIL 1996 AND LOOSEN FINANCIAL COVENANTS BANKS MUST SIGN OFF ON THE ACCORD AS WELL AS COMMIT TO A NEW BRIDGE LOAN IN A MEETING WITH GPA AND ITS CORE LENDERS TUESDAY MAJOR BANKS APPEARED TO BACK THE NEW PLANS EVEN THOUGH THE EQUITY WILL FALL SHORT OF THE ORIGINAL FIGURE ONE LENDER WHO ATTENDED THE MEETING SAID WHILE THE EQUITY FALLS A BIT SHORT AND BANKS WILL HAVE TO COMMIT MORE FUNDS LENDERS AND GPA GET IN RETURN A TRIPLEARATED PARTNER WITH DEEP POCKETS AIRCRAFTINDUSTRY EXPERIENCE AND SHREWD MANAGEMENT SKILLS BECAUSE OF THE GE DEAL GPA WILL SEEK YET ANOTHER WAIVER FROM LENDERS ON ITS FINANCIAL COVENANTS WHICH WERE BREACHED IN DECEMBER BANKS EXPRESSED A WILLINGNESS TO DO THE DEAL SAID ONE PARTICIPANT AT TUESDAY'S MEETING THEY'RE VERY SUPPORTIVE OF THE GE TRANSACTION THE MEETING TODAY WITH UNSECURED CREDITORS IN THE OFFICES OF DAVIS POLK & WARDWELL WILL BE GPA'S FIRST FORMAL COMMUNICATIONS WITH ITS NOTEHOLDERS WHILE THE COMPANY HAS BEEN CONSIDERING A MORATORIUM ON DEBT PAYMENTS OVER 50 MILLION COME DUE NEXT WEEK IT NOW APPEARS THE COMPANY WILL MAKE THOSE PAYMENTS PEOPLE CLOSE TO GPA SAY THE COMPANY HAS NEARLY 2 BILLION IN UNSECURED NOTES OUTSTANDING MUCH OF WHICH WAS SOLD IN THE US TO MUTUAL FUNDS AND INSURANCE COMPANIES GPA'S BONDS HAVE JUMPED FROM AROUND 20 CENTS ON THE DOLLAR TO 24 TO 28 CENTS ON THE DOLLAR ON REPORTS EARLIER IN THE WEEK THAT THE COMPANY MADE SIGNIFICANT PROGRESS WITH GE CAPITAL THERE'S A GENERAL PERCEPTION THAT THE BONDS WOULD BE AN INTERESTING SPECULATIVE PLAY ON THE FUTURE POTENTIAL OF AIRCRAFT BUSINESS SAID JACK HERSCH DIRECTOR OF RESEARCH AT MJ WHITMAN LP A NEW YORK FIRM SPECIALIZING IN DISTRESSED SECURITIES MEANWHILE LAZARD FRERES & CO WITHDREW AS A POTENTIAL ADVISER FOR CREDITORS BECAUSE THE COMPANY'S TRADING DESK WAS PURCHASING GPA'S SECURITIES BONDHOLDERS AND OTHERS SAY THE COMPANY WANTED TO AVOID ANY POTENTIAL FOR A CONFLICT OF INTEREST ALREADY HOLDERS WHO ATTEND WILL BE RESTRICTED FROM TRADING THEIR SECURITIES FOR A BRIEF PERIOD OF TIME ACCORDING TO A LETTER TO CREDITORS A SPOKESMAN FOR LAZARD WOULDN'T COMMENT 9305130062 930513 PENTAGON CONSIDERS BOSNIA AIR STRIKES AS ALLIES OPPOSE LIFTING ARMS EMBARGO BY THOMAS E RICKS AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WITH AMERICA'S CLOSEST ALLIES ADAMANTLY OPPOSED TO LIFTING THE ARMS EMBARGO ON BOSNIA THE PENTAGON IS PLANNING A MILITARY OPTION THAT CONSISTS OF AIR STRIKES ONLY DEFENSE DEPARTMENT OFFICIALS SAID WE MAY NOT STOP ALL OF THE ARTILLERY IMMEDIATELY BUT WE'D MAKE IT SO PAINFUL THAT THEY'D WANT TO STOP IT SAID ONE PENTAGON OFFICIAL ALLUDING TO THE POSSIBILITY OF LARGESCALE STRIKES AGAINST NOT ONLY THE BOSNIAN SERBS' ARTILLERY EMPLACEMENTS BUT THEIR POWER GRID AND INFRASTRUCTURE OFFICIALS INSIST THAT PRESIDENT CLINTON HAS MADE NO DECISION TO MODIFY HIS TWOPRONGED STRATEGY OF LIFTING THE ARMS EMBARGO AND USING AIR STRIKES TEMPORARILY TO CONTAIN SERBIAN AGGRESSION AND THE ADMINISTRATION COULD REVIVE THE PLAN AND ITS PRESSURE ON THE EUROPEANS IF AS EXPECTED BOSNIA'S SERBS REJECT A PEACE ACCORD IN THIS WEEKEND'S REFERENDUM EVEN IF THE AIR STRIKE OPTION IS ACCEPTED PENTAGON OFFICIALS SAY THEY DON'T EXPECT ANY MILITARY ACTION FOR SEVERAL MORE WEEKS BUT THE RENEWED ATTENTION TO THE AIR STRIKESONLY OPTION APPEARS TO REPRESENT A VICTORY FOR THE AIR FORCE AND ESPECIALLY AIR FORCE CHIEF OF STAFF GEN MERRILL MCPEAK WHO IN RECENT WEEKS HAS BEEN WAGING A BATTLE WITH JOINT CHIEFS OF STAFF CHAIRMAN COLIN POWELL FOR THE HEART AND MIND OF PRESIDENT CLINTON UNTIL RECENTLY THE PRESIDENT HAD BEEN CONVINCED BY GEN POWELL THAT AIR STRIKES ALONE WOULDN'T BE ENOUGH TO DECISIVELY SHIFT THE MILITARY BALANCE IN BOSNIA AND COULD TRAP THE US IN AN OPENENDED MILITARY COMMITMENT IN THE BALKANS LIFTING THE ARMS EMBARGO AND PROTECTING THE BOSNIAN MUSLIMS WHILE THEY ARE BEING ARMED AND TRAINED HOWEVER COULD MAKE THE DIFFERENCE US OFFICIALS SAY THAT BOSNIA'S MUSLIMS ARE OUTGUNNED BY THE SERBS BY AT LEAST A RATIO OF 9TO1 BUT AMERICA'S EUROPEAN ALLIES WITH PEACEKEEPING TROOPS ON THE GROUND HAVE ARGUED THAT LIFTING THE ARMS EMBARGO WOULD ONLY INCREASE THE KILLING IN BOSNIA WHILE JEOPARDIZING RELIEF OPERATIONS AND THE ALLIES' TROOPS LATE LAST MONTH GEN MCPEAK WITH THE APPARENT ENCOURAGEMENT OF DEFENSE SECRETARY LES ASPIN BROKE WITH GEN POWELL'S VIEW IN A WHITE HOUSE MEETING HE SPENT MORE THAN 45 MINUTES WITH THE PRESIDENT DESCRIBING A VARIETY OF POSSIBLE AIR ACTIONS MCPEAK AND THE SECRETARY ARE IN AGREEMENT ON THE UTILITY OF AIR STRIKES FOR LIMITED OBJECTIVES SAID ONE OFFICIAL ON THE JOINT CHIEFS OF STAFF EVERYBODY ELSE IN THE JOINT CHIEFS IS AGAINST THAT WHAT BOTHERS ME IS THAT THIS IS A STRATEGIC PROBLEM THAT'S ONLY BEING APPROACHED ON THE TACTICAL LEVEL SAID ROBERT GASKIN A FORMER AIR FORCE WAR PLANNER WHO IS NOW A POLICY ANALYST AT BUSINESS EXECUTIVES FOR NATIONAL SECURITY A WASHINGTON RESEARCH GROUP ARE AIR STRIKES GOING TO STOP THE FIGHTING OR AFFECT THE OVERALL CONFLICT THE ANSWER IS NO THEY REALLY WON'T VICE PRESIDENT AL GORE ONCE THE ADMINISTRATION'S STRONGEST PROPONENT FOR LIFTING THE ARMS EMBARGO IS NOW BELIEVED TO BE ADVOCATING THE AIR STRIKESONLY OPTION SAID ANOTHER SENIOR US OFFICIAL THE THINKING IS IF YOU CAN'T LIFT THE ARMS EMBARGO AND LEVEL THE PLAYING FIELD THAT WAY MAYBE YOU CAN DO THE SAME THING BY CUTTING THE SERBS DOWN TO SIZE THE FUNDAMENTAL GOAL SAY OFFICIALS IS STILL TO PERSUADE THE BOSNIAN SERBS TO ACCEPT A NEGOTIATED SETTLEMENT THE BOSNIAN SERBS ARE ALREADY UNDER STRONG POLITICAL AND SOME ECONOMIC PRESSURE FROM THEIR SERBIAN PATRONS TO ACCEPT AN INTERNATIONALLY NEGOTIATED PEACE ACCORD AIR STRIKES OR AT LEAST THE THREAT OF THEM COULD SHIFT THE BALANCE SOME OFFICIALS ARGUE BUT THERE ARE ALSO STRONG MILITARY AND POLITICAL ARGUMENTS AGAINST THE AIRONLY STRATEGY INDEED THEY ARE THE SAME ARGUMENTS THAT PRESIDENT CLINTON AND SECRETARY OF STATE WARREN CHRISTOPHER HAVE MADE TO THE ALLIES IN RECENT WEEKS MOST IMPORTANT AIR STRIKES ALONE POINT TO NO CLEAR EXIT PLAN AND IF THEY DON'T SHIFT THE MILITARY OR DIPLOMATIC BALANCE THE US WILL HAVE TO CONTINUE THE STRIKES INDEFINITELY OR WALK AWAY FROM BOSNIA YET WITHDRAWING COULD BE DIFFICULT ESPECIALLY IF AMERICAN PILOTS HAVE BEEN KILLED OR CAPTURED PRESIDENT CLINTON HAS PROMISED THAT ANY US MILITARY ACTION IN BOSNIA WOULD HAVE A CLEARLY DEFINED GOAL WITH A CLEARLY IDENTIFIED EXIT STRATEGY 9305130061 930513 DELOITTE & TOUCHE IS SUED BY THE RTC OVER CENTRUST AUDIT MIAMI AP FEDERAL REGULATORS HAVE FILED A 250 MILLION SUIT AGAINST THE ACCOUNTING FIRM DELOITTE & TOUCHE CHARGING IT NEGLIGENTLY AUDITED CENTRUST SAVINGS WHICH COLLAPSED AND REQUIRED A 18 BILLION GOVERNMENT BAILOUT TWO DELOITTE PARTNERS WERE ACCUSED OF NEGOTIATING EMPLOYMENT CONTRACTS WITH CENTRUST CHAIRMAN DAVID PAUL WHILE THE FIRM WAS AUDITING HIS BOOKS THE RESOLUTION TRUST CORP CHARGED IN THE LAWSUIT FILED IN FEDERAL COURT IN MIAMI MR PAUL IS FACING SEPARATE FEDERAL CHARGES THAT HE LOOTED THE BANK AND CONCEALED BANK OF CREDIT AND COMMERCE INTERNATIONAL'S STAKE IN THE THRIFT DELOITTE'S PERFORMANCE EVIDENCED A SHOCKING DISREGARD FOR ITS PROFESSIONAL OBLIGATIONS THE RTC CHARGED ALFRED LEACH SPOKESMAN FOR DELOITTE & TOUCHE IN WILTON CONN SAID THE FIRM'S AUDIT OF CENTRUST FINANCIAL STATEMENTS WERE PERFORMED IN ACCORDANCE WITH PROFESSIONAL STANDARDS AND GUIDANCE AND DELOITTE WILL VIGOROUSLY DEFEND ITS WORK IN A SEPARATE SUIT THE RTC DEMANDED 147 MILLION FROM DELOITTE FOR THE FAILURE OF A SMALLER MIAMI THRIFT GENERAL BANK THE RTC WHICH IS OVERSEEING THE S&L BAILOUT HAS MOVED AGGRESSIVELY IN THE PAST YEAR TO RECOVER MONEY FROM FORMER BANK EXECUTIVES ACCOUNTING FIRMS AND LAW FIRMS THAT WORKED ON BEHALF OF FAILED THRIFTS DURING THE 1980S LAST NOVEMBER THE ACCOUNTING FIRM ERNST & YOUNG AGREED TO PAY 400 MILLION TO SETTLE S&LRELATED LITIGATION WITH THE RTC THREE MONTHS EARLIER THE RTC SUED ARTHUR ANDERSEN FOR 400 MILLION IN THE FAILURE OF A HOUSTON THRIFT 9305130060 930513 LEAVE ME HOME ALONE BY DAVID HOLAHAN WORKING AT HOME IS IN I AM ONE OF MILLIONS OF AMERICANS WHOSE DAILY COMMUTE IS MEASURED IN FEET FROM THE BEDROOM TO THE HOME OFFICE AFTER MORE THAN A DECADE OF PENNING FREELANCE ARTICLES FROM HOME I WAS RECENTLY ASKED TO FILL IN FOR TWO MONTHS AS AN EDITORIAL WRITER FOR A LARGE METROPOLITAN NEWSPAPER MY STINT IS OVER AND I AGAIN AM HOME ALONE WITH A VIVID PERSPECTIVE ON WORKING IN THESE TWO VERY DIFFERENT ENVIRONMENTS THE AMOUNT OF RESOURCES BOTH NATURAL AND UNNATURAL THAT AN OFFICEWORKER CONSUMES EVEN BEFORE DRIVING OFF TO WORK IN A CLOUD OF HYDROCARBONS IS ASTOUNDING WATER SOAP LINENS SHAMPOO CONDITIONER DISPOSABLE RAZORS SHAVING CREAM VISINE DEODORANT HAIR SPRAY SKIN CREAM MOUTHWASH BABY POWDER ROLAIDS AND CLOTHES I REALIZED ON DAY ONE THAT IT WAS GOING TO BE TOUGH TO SELL MY COLLEAGUES ON THE IDEA THAT TWO PAIRS OF SHINY SLACKS ONE JACKET AND SEVERAL POLITICALLY RELEVANT NECKTIES FROM THE 1960S CONSTITUTE A PROFESSIONAL WARDROBE THANK GOODNESS MY SLIGHTLY STOUTER SHORTER BROTHER A BANKER LIVES NEARBY HE HAS SUITS GALORE AND HAS EVEN BUILT UP A STRATEGIC RESERVE OF CLEAN DRESS SHIRTS OTHER PRESSURE BUILDS WHEN YOU WORK SEVEN DAYS FOR EIGHT OR NINE HOURS AND COMMUTE ALMOST AN HOUR EACH WAY I CAME QUICKLY TO RELY ON THE OFFICE SODA AND CANDY MACHINES QUICK JUMPS FOR LATE AFTERNOON SLUMPS WHEN ATHOME WRITERS NORMALLY WOULD BE NAPPING SENSIBLE DINNERS DISAPPEARED AS MY WORKING WIFE MY SON AND I ATE PIZZA OR CHINESE TAKEOUT FOR ALMOST TWO MONTHS THE OFFICE WORK ROUTINE CAN ONLY BE DESCRIBED AS WORK WORK WORK A BOSS AND A SLEW OF OTHERS ARE WORKING NEARBY EXERTING BOSS AND PEER PRESSURE TO BEAT THE BAND WHILE AT HOME THERE ARE ANY NUMBER OF NEARWORK EXPERIENCES FROM WHICH TO CHOOSE FROM DOING THE LAUNDRY TO CHASING SQUIRRELS AWAY FROM THE BIRD FEEDER AT HOME IN THE WINTER WHEN THE PONDS ARE FROZEN I CAN CALL SOME SEMIEMPLOYED FRIENDS AND SET UP AN AFTERNOON OF PICKUP POND HOCKEY WERE I TO TRY THIS WHILE WORKING FOR THE NEWSPAPER IT MIGHT SHOW UP ON MY YEAREND PERFORMANCE EVALUATION DISAPPEARS FOR HOURS AT A TIME IN COLD WEATHER AND RETURNS WITH APPLERED CHEEKS AND FACIAL ABRASIONS AT HOME PERSONAL CALLS ARE UNLIMITED ALTHOUGH YOU DO HAVE TO PAY FOR THEM WE HOMEALONERS HAVE TIME FOR SUCH FRIVOLOUS ACTIVITIES SINCE WE DON'T SPEND AN HOUR EACH MORNING PREENING AND ANOTHER COUPLE OF HOURS CONTRIBUTING TO GLOBAL WARMING SO WHILE WE MAY LOOK UNKEMPT WE ARE ECOLOGICALLY RESPONSIBLE AND EFFICIENT I KNOW THERE IS A CASE TO BE MADE FOR THE CORPORATE OFFICE REGIME WITH THE MANY PEOPLE THERE THE GOSSIP FLOURISHES AT FIRST I DIDN'T REALIZE WHAT MY COWORKERS WERE UP TO HUDDLING AND WHISPERING SOON HOWEVER I TOO WAS BLATHERING AWAY ABOUT ONE AND ALL LIKE AN OLD PRO THEN THERE WAS THAT WEEKLY PAYCHECK VERY CONVENIENT AN AUTOMATED TELLER MACHINE AND CAFETERIA RIGHT IN THE NEWSPAPER BUILDING WERE NICE TOO BUT NOW I HAD TO SPEND HALF THE WEEKEND AT THE DRY CLEANER'S SUPERMARKET VIDEO MART AND HARDWARE STORE THERE IS SOMETHING TO BE SAID FOR THE STRUCTURE OF A REGULAR WORK ENVIRONMENT TO SAY NOTHING OF A PENSION HEALTH INSURANCE PAID VACATION SICK DAYS PERSONAL DAYS IMPERSONAL DAYS BUT THE FLEXIBILITY OF BEING A ONEPERSON OPERATION HAS ITS BENEFITS TOO I CAN INHALE A JUMBO BAG OF CORN BUGLES AT MY DESK HECK WASH 'EM DOWN WITH A QUART BOTTLE OF RC COLA IF I WANT NAPKIN OPTIONAL IN THE HEAT OF SUMMER CLOTHES ARE NOT DE RIGUEUR I HAVE DONE SOME OF MY BEST WRITING WELL YOU GET THE PICTURE MR HOLAHAN MAKES HIS HOME/OFFICE IN EAST HADDAM CONN 9305130059 930513 ABREAST OF THE MARKET INDUSTRIALS RISE 1356 TO A RECORD AS METAL ENERGY STOCKS ADVANCE BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE SAILED TO A RECORD AS A SURPRISING SURGE IN INFLATION PROMPTED INVESTORS TO SNAP UP METAL AND ENERGY STOCKS THE GAINS PROPELLED THE DOW JONES INDUSTRIALS 1356 POINTS HIGHER TO 348231 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX CLIMBED 044 POINT TO 44480 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 018 TO 24606 THE DOW JONES INDUSTRIALS' OLD RECORD WAS 347861 MOST OF THE STOCKS THAT WERE STRONG IN THE DOW WERE INFLATION PLAYS SAID THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER STOCKS STARTED THE DAY LOWER DRAGGED DOWN BY THE LABOR DEPARTMENT REPORT SHOWING PRODUCER PRICES JUMPED 06 IN APRIL FAR MORE THAN THE 02 GAIN ECONOMISTS HAD PREDICTED BUT STRONG BUYING OF METAL AND ENERGY STOCKS WHICH TYPICALLY FARE WELL WHEN INFLATIONARY PRESSURES ARE HEATING UP HELPED TURN THE DOW JONES INDUSTRIALS AROUND TRADERS ALSO SAID A BIG ASSET ALLOCATION MOVE BY ONE BROKERAGE FIRM THAT INVOLVED THE SALE OF BONDS AND THE PURCHASE OF STOCKS HELPED THE MARKET TO SHAKE OFF THE NEGATIVE NEWS ON THE INFLATION FRONT DENNIS JARRETT CHIEF EQUITY STRATEGIST AT KIDDER PEABODY SAID HE THINKS STOCKS ARE POISED FOR A BIG RALLY THIS IS A MARKET WHICH EVERYBODY HATES THERE ARE HIGH CASH FLOWS AND THE AVERAGE STOCK SEEMS TO BE IMPROVING SO WE COULD SEE AN EXPLOSIVE MOVE TO THE UPSIDE SAID MR JARRETT ONE FACTOR FAVORING A JUMP IN STOCK PRICES IS THE RISING BEARISH SENTIMENT AMONG MONEY MANAGERS MR JARRETT SAID A REPORT RELEASED YESTERDAY SHOWED THAT ONLY 357 OF INVESTMENT ADVISERS ARE BULLISH TYPICALLY ANALYSTS REGARD BULLISH SENTIMENT BELOW 40 AS AUGERING WELL FOR STOCK PRICES BECAUSE IT MEANS MONEY MANAGERS ARE LETTING CASH LEVELS BUILD THAT CASH IN TURN BECOMES A POWERFUL SOURCE OF NEW FUEL TO DRIVE STOCK PRICES HIGHER WHEN SENTIMENT CHANGES BUT MR GALLAGHER ISN'T SO SANGUINE ABOUT THE MARKET'S PROSPECTS THE MARKET HAD A DESTINY TO MAKE A NEW HIGH BUT IT DID IT IN A VERY UNCONVINCING WAY HE SAID HE NOTED THAT WHILE THE DOW JONES INDUSTRIALS HIT A HIGH THE S&P 500 AND OTHER BROADER MARKET MEASURES ARE FAR FROM THEIR RECORDS INFLATION FEARS SPURRED A SHARP RALLY IN GOLD STOCKS HOMESTAKE MINING GAINED 1 1/4 TO 17 1/2 AND NEWMONT MINING SURGED 2 3/4 TO 50 1/2 ON THE AMERICAN STOCK EXCHANGE PEGASUS GOLD SOARED 2 TO 21 AND ECHO BAY MINES CLIMBED 1 1/2 TO 10 1/2 BUT TOBACCO STOCKS SLID AFTER A MISSISSIPPI STATE COURT DECLARED CIGARETTES DEFECTIVE AS A MATTER OF LAW THOUGH TOBACCO LAWYERS CALLED THE RULING AN ABERRATION PHILIP MORRIS TUMBLED 1 1/2 TO 50 RJR NABISCO ENDED UNCHANGED AT 1/8 TO 5 7/8 AND LOEWS WHICH MARKETS NEWPORT CIGARETTES SLIPPED 3/8 TO 99 EASTMAN KODAK GAINED 1 5/8 TO 53 GOLDMAN SACHS ANALYST JACK KELLY RAISED HIS INVESTMENT RATING ON THE STOCK TO SIGNIFICANTLY OUTPERFORM FROM A MARKET PERFORM HE PREDICTS THE STOCK CAN RISE TO AT LEAST 65 A SHARE ZURICH REINSURANCE CENTRE A NEW ISSUE WAS AMONG THE MOST ACTIVE BIG BOARD STOCKS ENDING AT ITS 35 OFFERING PRICE A TOTAL OF 855 MILLION SHARES OF THE NEW YORK COMPANY WERE OFFERED INCLUDING 64 MILLION IN THE US CENTRE REINSURANCE HOLDINGS A BERMUDA UNIT OF ZURICH INSURANCE CO OF SWITZERLAND SOLD ALL OF THE SHARES OFFERED CUTTING ITS STAKE TO 57 CYPRESS SEMICONDUCTOR JUMPED 1 1/4 TO 12 FUJITSU LTD OF JAPAN SIGNED A LETTER OF INTENT TO PURCHASE SAN JOSE CALIF CYPRESS'S ROSS TECHNOLOGY UNIT FOR 23 MILLION ROSS MAKES SPARC MICROPROCESSORS WHICH ARE USED IN COMPUTER WORKSTATIONS WALMART JUMPED 1 TO 27 AFTER THE COMPANY REPORTED FIRSTQUARTER EARNINGS OF 20 CENTS A SHARE UP FROM 17 CENTS A YEAR AGO AND IN LINE WITH ANALYSTS' EXPECTATIONS THE BENTONVILLE ARK DISCOUNT RETAILER SAID IT IS ON TRACK TO MEET ITS EARNINGS TARGETS FOR THE REST OF THE YEAR SHARES OF FEDERATED DEPARTMENT STORES OF CINCINNATI ALSO GAINED FOLLOWING EARNINGS NEWS ADDING 7/8 TO 21 1/4 IT HAD PROFIT FROM OPERATIONS OF 17 CENTS A SHARE IN THE FIRST QUARTER ENDED THIS MONTH COMPARED WITH NET INCOME OF 15 CENTS A YEAR AGO CALDOR THOUGH DROPPED 2 1/4 TO 32 3/4 THE NORWALK CONN RETAILER REPORTED A LOSS OF 27 CENTS A SHARE FOR THE FIRST QUARTER THAT WAS NARROWER THAN ITS YEARAGO LOSS FROM OPERATIONS OF 28 CENTS BUT WIDER THAN THE 26 CENT DEFICIT THAT INSTITUTIONAL BROKERS ESTIMATE SYSTEM SAID ANALYSTS HAD FORECAST WOOLWORTH LOST 5/8 TO 29 THE NEW YORK RETAILING CONCERN RECORDED A FIRSTQUARTER PROFIT OF ONE CENT A SHARE DOWN FROM 13 CENTS LAST YEAR THE MEAN ESTIMATE OF ANALYSTS WAS 15 CENTS ACCORDING TO IBES STUDENT LOAN MARKETING ASSOCIATION FELL 2 1/8 TO 47 1/4 A HOUSE OF REPRESENTATIVES COMMITTEE APPROVED LEGISLATION THAT WOULD REPLACE THE CURRENT GUARANTEED STUDENT LOAN PROGRAM WITH A SYSTEM OF DIRECT FEDERAL LOANS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 118 TO 42843 THERE WERE 297 ADVANCERS AND 280 DECLINERS 9305130058 930513 BUSINESS BRIEF ROADWAY SERVICES INC TRUCKING CONCERN TO START HEAVY AIR FREIGHT BUSINESS ROADWAY SERVICES INC SAID IT WILL START AN AIR FREIGHT BUSINESS FOR HEAVY PACKAGES IN SEPTEMBER ROADWAY GLOBAL AIR INC WILL FOCUS ON PACKAGES WEIGHING MORE THAN 25 POUNDS AND WILL PROVIDE SERVICES INCLUDING NEXT AND SECONDDAY DELIVERY THE COMPANY SAID IT EXPECTS TO INVEST 100 MILLION IN THE BUSINESS TO FINANCE CAPITAL COSTS AND LOSSES A SPOKESWOMAN SAID LOSSES SHOULD PEAK IN 1994 BUT SHE DECLINED TO SAY WHEN AKRON OHIOBASED ROADWAY EXPECTS THE UNIT TO TURN A PROFIT THE MARKET FOR HEAVY AIR FREIGHT WHICH ROADWAY ESTIMATES AT 20 BILLION A YEAR IS HIGHLY COMPETITIVE BUT ROADWAY HAS SUCCEEDED IN THE PAST BY ENTERING MARKETS AGAINST STIFF COMPETITION SAID BURTON M STRAUSS JR AN ANALYST WITH LEHMAN BROTHERS ITS ROADWAY PACKAGE SYSTEM INC STARTED IN 1985 HAS SUCCESSFULLY COMPETED WITH THE LIKES OF GIANT UNITED PARCEL SERVICE HE SAID ROADWAY NAMED DONALD G BERGER 46 YEARS OLD TO HEAD THE NEW SUBSIDIARY HE FORMERLY WAS PRESIDENT OF EMERY WORLDWIDE A UNIT OF CONSOLIDATED FREIGHTWAYS INC 9305130057 930513 HEALTH PLEASING HOSPITAL PATIENTS CAN PAY OFF BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL LIVINGSTON NJ AFTER POP SINGER WHITNEY HOUSTON HAD A BABY AT ST BARNABAS MEDICAL CENTER HERE SHE WAS ASKED TO RATE THE FACILITY IF SHE RESPONDS SHE WILL HELP DETERMINE THE PROFITS FOR A COMPANY THAT PROVIDES DIETARY AND HOUSEKEEPING SERVICES TO THE BIG 620BED NONPROFIT HOSPITAL BUT THE WEIGHT OF MS HOUSTON'S OPINION HAS NOTHING TO DO WITH HER STAR STATUS ALL PATIENTS ARE ASKED TO EVALUATE QUALITY OF FOOD CLEANLINESS AND STAFF COURTESY USING A QUESTIONNAIRE THAT PROVIDES A MEASURING STICK FOR A NOVEL CONTRACT THAT LINKS PROFIT TO PATIENT SATISFACTION AS THE HEALTHCARE INDUSTRY MOVES INTO AN ERA OF ACCOUNTABILITY AND COSTCUTTING THE DESIRE TO RELATE PATIENT FEEDBACK DIRECTLY TO THE BOTTOM LINE IS LIKELY TO GROW SAY HOSPITALS AND MANAGEMENT SERVICE COMPANIES HOSPITALS THAT FARM OUT CERTAIN HOSPITAL SERVICES INCLUDING ST BARNABAS FAULKNER HOSPITAL IN BOSTON AND PARK RIDGE HOSPITAL IN ROCHESTER NY ARE IN THE FOREFRONT OF WHAT MAY BE A KEY OPERATING STRATEGY FOR THE 1990S SHARE THE RISK CONTRACTS THAT CONTAIN INCENTIVES HAVE BEEN AROUND FOR YEARS AND SO HAVE PATIENT SURVEYS BUT PARTNERING HAS LINKED THE TWO FORMALLY AND RAISED THE ANTE HIGHER FOR VENDORS WHO NOW ARE SOMETIMES EXPECTED TO INVEST IN STATEOFTHEART EQUIPMENT FOR USE IN THE HOSPITAL THEY HAVE CONTRACTED WITH A PERFORMANCELINKED CONTRACT IS A VENDOR'S GAMBLE CONCEDES RONALD DEL MAURO PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ST BARNABAS BUT HE ADDS IF WE'RE SUCCESSFUL THEY'RE SUCCESSFUL THE VENDOR FOR ST BARNABAS AND PARK RIDGE IS SEILER CORP A WALTHAM MASS MANAGEMENTSERVICES CONCERN OWNED BY PARISBASED SODEXHO SEILER WITH ABOUT 400 MILLION IN ANNUAL REVENUE RANKS BEHIND INDUSTRY GIANTS LIKE MARRIOTT CORP AND ARA SERVICES INC SEILER PREVIOUSLY RAN ONLY THE DIETARY SERVICE AT ST BARNABAS AND MARRIOTT'S MANAGEMENT SERVICES DIVISION PROVIDED HOUSEKEEPING SERVICES THEN LAST YEAR ST BARNABAS BUNDLED THE TWO CONTRACTS TOGETHER TIED PAYMENT TO PATIENTSURVEY SCORES AND OPENED THE PACT TO BIDS BY CREATING AN UNUSUALLY LARGE 80 MILLION OVER ITS LIFE AND UNUSUALLY LONG SEVEN YEARS INSTEAD OF ONE CONTRACT ST BARNABAS BUILT IN A REASON FOR VENDORS TO CONSIDER A PARTNERSHIP FOR ITS PART SEILER AGREED TO INVEST 12 MILLION IN EQUIPMENT TO UPDATE THE HOSPITAL'S KITCHEN IT STANDS TO EARN AS MUCH AS 150 OF A BASE AMOUNT THE BASE COVERS SEILER'S OVERHEAD AND A PRETAX PROFIT OR AS LITTLE AS 60 OF THE BASE DEPENDING ON QUARTERLY SURVEY SCORES WHAT'S MORE SEILER HAS ALREADY USED THE ST BARNABAS PACT SIGNED LAST AUGUST AS A MARKETING MODEL FOR ITS RECENT PACT WITH PARK RIDGE HOSPITAL CRITICS SAY VENDORS LIKE SEILER MAY SIMPLY BE BUYING BUSINESS NOT SO SAYS DONALD STORER EXECUTIVE VICE PRESIDENT OF SEILER WE'RE INTERESTED IN STRUCTURING LONGTERM RELATIONSHIPS WHERE THE RETURN ON INVESTMENT IS WORTH IT HE MAINTAINS ST BARNABAS'S SCORES FOR ITS HOUSEKEEPING AND DIETARY SERVICES HAVE BEEN ABOUT AVERAGE IN RECENT YEARS IN THE 70S TO LOW 80S THE HOSPITAL EXPECTS THAT AFTER A YEAR OF USING A NEW KITCHEN ITS DIETARY SERVICES WILL ATTAIN SCORES ABOVE 80 AND THEN STEADILY INCREASE A SCORE IN THE 90S WOULD TRIGGER PAYMENTS OF 10 ABOVE THE CONTRACT'S BASE LEVEL SCORING IS WEIGHTED SO THAT EXCEPTIONAL COURTESY FOR INSTANCE DOESN'T MAKE UP FOR A DIRTY ROOM THE SURVEY THAT ST BARNABAS PUTS SO MUCH FAITH IN AND SEILER'S SUCCESS HINGES ON IS A QUESTIONNAIRE DEVELOPED EIGHT YEARS AGO BY IRWIN PRESS AND RODNEY F GANEY TWO PHDS AT NOTRE DAME UNIVERSITY IN SOUTH BEND IND TODAY PRESS GANEY ASSOCIATES INC HAS ABOUT 400 CLIENTS WHILE MANY HOSPITALS USE THE SURVEY TO GAUGE PATIENT SATISFACTION ONLY ABOUT 10 TIE IT IN SOME WAY TO PAYMENT BUT THE TREND IS GROWING EVERY VENDOR IN THIS INDUSTRY HAS TO BE VERY CONCERNED ABOUT PATIENT SATISFACTION SAYS MR GANEY ST BARNABAS'S DIETARY AND HOUSEKEEPING WORKERS ARE MEMBERS OF LOCAL 1199J OF THE NATIONAL UNION OF HOSPITAL AND HEALTH CARE EMPLOYEES AND THEIR CONTRACT IS WITH SEILER THE VENDOR NOT THE HOSPITAL TWO OTHER HOSPITALS THAT ARE USING THE PRESS GANEY SURVEY TO HELP DETERMINE INCENTIVE PAY USE DOCTORS AND OTHER WORKERS WHO DON'T BELONG TO UNIONS FAULKNER HOSPITAL A BOSTONAREA TEACHING FACILITY WITH 204 BEDS THREE YEARS AGO TIED TWO TAILORED PRESS GANEY SURVEYS TO ITS INCENTIVE COMPENSATION PAY SCALE FOR INDEPENDENTLY CONTRACTED EMERGENCYROOM PHYSICIANS ONE POLL SURVEYS GENERAL EMERGENCY ROOM PATIENT SATISFACTION AND ONE ASKS SOLELY ABOUT PHYSICIAN PERFORMANCE OUR SCORES IMPROVED DRAMATICALLY SAYS KENNETH BELCHER VICE PRESIDENT OF AMBULATORY AND SPECIAL SERVICES AT FAULKNER IN 198990 WHEN FAULKNER SIGNED A CONTRACT WITH SYNERGON A ST LOUISBASED COMPANY THAT SUPPLIES BOARDCERTIFIED EMERGENCY ROOM PHYSICIANS ITS EMERGENCY ROOM SCORES WERE AROUND 74 BY 199091 SCORES HAD RISEN TO 86 TRIGGERING 30000 IN BONUSES FOR THE EMERGENCY ROOM DOCTORS WHO EARN A TOTAL OF ABOUT 200000 EACH A YEAR IN JANUARY PARK RIDGE HOSPITAL IN ROCHESTER NY SIGNED AN EIGHTYEAR 28 MILLION CONTRACT WITH SEILER THAT IS SIMILAR TO THE ST BARNABAS DEAL SEILER OFFERED US A PARTNERSHIP WE COULDN'T TURN DOWN SAYS PATRICK BURNS HEAD OF CORPORATE SERVICES AT PARK RIDGE MR BURNS SAYS THE CONTRACT REPRESENTS A 4 MILLION SAVINGS FROM ITS PREVIOUS ARRANGEMENTS AND SEILER WILL ALSO INVEST SOME 350000 IN CAPITAL EQUIPMENT MR BURNS SAYS WHILE NUMBER CRUNCHERS LIKE THE IDEA OF MEASURING SATISFACTION SUCH SCORES SHOULDN'T REPLACE CLINICAL OUTCOME THE SCIENTIFIC MEASURE OF WHETHER CHANGES IN THERAPY LENGTH OF STAY AND SUCH IMPROVE A PATIENT'S MEDICAL CONDITION WARNS DANIEL SISTO PRESIDENT OF THE HOSPITAL ASSOCIATION OF NEW YORK STATE IN ALBANY BOTH PATIENT SATISFACTION AND CLINICAL OUTCOME MUST BE MEASURED MR SISTO SAYS A PATIENT MAY HAVE A FINE MEDICAL OUTCOME AND STILL COMPLAIN BITTERLY ABOUT HOW THEY WERE TREATED HE ADDS OF COURSE NONE OF THIS COSTQUALITY MANAGEMENT IS FREE THE ANNUAL FEE TO GET THE COPYRIGHTED PRESS GANEY SURVEY AND NUMBERCRUNCHING SERVICES IS ABOUT 3100 WHICH INCLUDES QUARTERLY SCORES LAST YEAR ST BARNABAS PAID ABOUT 6000 FOR ITS INPATIENT SURVEY INCLUDING POSTAGE AND SPECIAL REPORTS ST BARNABAS'S MR DEL MAURO DEFENDS THE SURVEY'S VALUE I DON'T KNOW HOW YOU CAN DO BUSINESS WHETHER IT'S A RESTAURANT OR A WAREHOUSE WITHOUT KNOWING THE FEELINGS OF YOUR CUSTOMER OUR BUSINESS IS HEALTH CARE HE SAYS AND HEALTH CARE IN THIS COUNTRY IS IN INSTITUTIONAL TRANSITION 9305130056 930513 INTERNATIONAL CHAIRMAN OF IRI IS CHARGED IN ITALY KICKBACK SCANDAL BY MAUREEN KLINE SPECIAL TO THE WALL STREET JOURNAL MILAN FRANCO NOBILI CHAIRMAN OF ITALY'S LARGEST STATEOWNED INDUSTRIAL CONGLOMERATE IRI SPA WAS ARRESTED ON CORRUPTION CHARGES AS ITALY'S 15MONTHOLD PAYOFF SCANDAL CONTINUED THOUGH CHARGES AGAINST MR NOBILI MOSTLY RELATE TO HIS TERM AS CHAIRMAN OF PRIVATE CONSTRUCTION FIRM COGEFAR FROM 1976 TO 1989 AT LEAST ONE CHARGE REFERS TO BRIBES PAID TO WIN A CONSTRUCTION CONTRACT AFTER MR NOBILI WAS NAMED CHAIRMAN OF ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE IN NOVEMBER 1989 THE CHARGES AGAINST MR NOBILI INVOLVE KICKBACKS ALLEGEDLY PAID TO THE CHRISTIAN DEMOCRATIC AND SOCIALIST PARTIES ON PUBLIC WORKS PROJECTS RANGING FROM CONSTRUCTION OF TWO POWER PLANTS TO THE ROME SUBWAY SYSTEM AND ROME SOCCER STADIUM MILAN PROSECUTORS ISSUED THE WARRANT FOR MR NOBILI'S ARREST WEDNESDAY FOLLOWING A LENGTHY INTERROGATION OF ENZO PAPI FORMER MANAGING DIRECTOR OF COGEFARIMPRESIT THE COMPANY WAS RENAMED FOLLOWING ITS ACQUISITION BY THE FIAT GROUP IN 1989 ACCORDING TO INFORMATION LEAKED WIDELY TO THE PRESS MR PAPI TOLD MAGISTRATES THAT WHEN HE WAS NAMED MANAGING DIRECTOR OF COGEFAR HE INHERITED A SYSTEM OF PAYING KICKBACKS ON CONSTRUCTION CONTRACTS TO POLITICIANS FOR WHICH A SPECIAL CHANNEL ISLANDS BANK ACCOUNT WAS USED THOUGH IRICONTROLLED COMPANIES ACCOUNT FOR MORE THAN 25 OF MILAN STOCK MARKET CAPITALIZATION MR NOBILI'S ARREST HAD ONLY A SLIGHT EFFECT ON THE MARKET THE MILAN EXCHANGE CLOSED UP 043 YESTERDAY AFTER A FINAL VOTE OF CONFIDENCE IN PARLIAMENT MADE ITALY'S NEW GOVERNMENT OFFICIAL ANALYSTS SAID NEW ARRESTS ARE NO LONGER A NEGATIVE FACTOR AS THE INVESTIGATION BRINGS NEW HOPE TO THE COUNTRY IN ADDITION ANALYSTS POINTED OUT THAT MR NOBILI HAD LITTLE OPERATING POWER IN IRI THE STATE GROUP WAS CONVERTED INTO A JOINT STOCK COMPANY LAST JULY AND OPERATIONS WERE PLACED LARGELY IN THE HANDS OF MANAGING DIRECTOR MICHELE TEDESCHI IRI EXECUTIVES SAID ALL GROUP ACTIVITIES WOULD PROCEED NORMALLY AND THAT THE ARREST WOULDN'T AFFECT OPERATIONS MR NOBILI'S ARREST CAME TWO MONTHS AFTER THE CHAIRMAN OF STATEOWNED PETROCHEMICAL GIANT ENI GABRIELE CAGLIARI WAS ARRESTED ON SIMILAR CHARGES LIKE MR NOBILI MR CAGLIARI HAD ALREADY LOST MOST OF HIS POWER WHEN ENI BECAME A JOINT STOCK COMPANY LAST JULY ENI'S MANAGING DIRECTOR FRANCO BERNABE SUCCEEDED MR CAGLIARI AS CHAIRMAN AFTER THE ARREST 9305130055 930513 INTERNATIONAL BRIEF SEGA ENTERPRISES VIDEO GAME MAKER REPORTS 64 JUMP IN PRETAX PROFIT SEGA ENTERPRISES A JAPANESE VIDEO GAME MAKER SAID UNCONSOLIDATED PRETAX PROFIT IN THE FISCAL YEAR ENDED MARCH 31 ROSE 64 TO 5502 BILLION YEN 494 MILLION FROM 3348 BILLION YEN A YEAR EARLIER NET PROFIT DOUBLED TO 2802 BILLION YEN FROM 1401 BILLION YEN SALES ROSE 63 TO 34694 BILLION YEN FROM 21332 BILLION YEN THE COMPANY CITED STRONG GROWTH IN ALL AREAS OF OPERATION WITH SALES OF ARCADESTYLE VIDEO GAMES RISING 58 SEGA SAID HOME VIDEO GAME SALES SKYROCKETED 70 AS THE 16BIT GENESIS SYSTEM FOUND A WARM RECEPTION IN THE US AND EUROPE SEGA SAID IT SEES CONTINUED GROWTH IN UNCONSOLIDATED EARNINGS ALBEIT AT A SLOWER PACE WITH THE FOCUS FOR ARCADESTYLE GAMES ON HIGHLEVEL COMPUTER GRAPHICS AND EMERGING VIRTUAL REALITY TECHNOLOGIES IN THE HOME MARKET SEGA PLANS TO INTRODUCE A LOWCOST VERSION OF AN EXTANT COMPACT DISK ATTACHMENT BOTH IN JAPAN AND OVERSEAS TO STRENGTHEN THE SOFTWARE SIDE IN THE LATEST FISCAL YEAR SALES OF ARCADESTYLE VIDEO GAMES ACCOUNTED FOR 17 OF SEGA'S UNCONSOLIDATED REVENUE WITH SALES OF HOME VIDEO GAMES ACCOUNTING FOR 66 THE REMAINDER CAME FROM OPERATION OF AMUSEMENT CENTERS AND ROYALTIES 9305130054 930513 BUSINESS BRIEF WHOLE FOODS MARKET INC COMPANY PLANS TO BUY CHAIN FOR 559 MILLION IN STOCK WHOLE FOODS MARKET INC AUSTIN TEXAS SAID IT AGREED TO ACQUIRE LOS ANGELES BASED MRS GOOCH'S NATURAL FOODS SUPERMARKET CHAIN FOR STOCK VALUED AT ABOUT 559 MILLION MRS GOOCH'S COMPRISES SEVEN STORES AND HAD SALES OF ABOUT 85 MILLION IN 1992 WHOLE FOODS SAID THE COMPANY ALSO SAID IT HAD RECORD SALES AND PROFITS IN THE FISCAL SECOND QUARTER ENDED APR 11 WHOLE FOODS' NET INCOME FOR THE QUARTER GREW 83 TO 14 MILLION OR 27 CENTS A SHARE FROM 765000 OR 20 CENTS A SHARE ON FEWER SHARES OUTSTANDING A YEAR EARLIER 9305130053 930513 BUSINESS BRIEF PHYSICIANS HEALTH SERVICES INC FIRSTQUARTER PROFIT CLIMBED 22 AS ENROLLMENT INCREASED MANAGED HEALTHCARE COMPANY PHYSICIANS HEALTH SERVICES INC SAID FIRSTQUARTER NET INCOME ROSE 22 BECAUSE OF SIGNIFICANT ENROLLMENT GROWTH NET WAS 21 MILLION OR 24 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 17 MILLION OR 27 CENTS A SHARE AVERAGE SHARES OUTSTANDING ROSE TO 86 MILLION FROM 63 MILLION DUE TO A RECENT INITIAL PUBLIC OFFERING REVENUE ROSE 63 TO 703 MILLION FROM 661 MILLION THE TRUMBULL CONN COMPANY SAID ENROLLMENT ROSE NEARLY 12 FROM A YEAR EARLIER BECAUSE OF A NEW LINE OF MANAGED CARE SERVICES AND BECAUSE EMPLOYERS WERE SEEKING SERVICES WITH A SINGLE HEALTHCARE PROVIDER PHYSICIANS HEALTH STOCK FELL 1 TO CLOSE AT 1550 A SHARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9305130052 930513 HEALTH CLINTON MOVES TOWARD STATE FLEXIBILITY IN HEALTH CARE MAKING SOME FEVERISH BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS MOVING TOWARD GRANTING STATES BROAD FLEXIBILITY UNDER ITS HEALTH PLAN RAISING GROWING CONCERN AMONG BIG BUSINESS AND BIG LABOR LARGE COMPANIES ARE UPSET AT THE PROSPECT OF HAVING TO DEAL WITH DIFFERENT RULES AND REGULATIONS IN DIFFERENT STATES I THINK WE'LL END UP GETTING WHIPSAWED SAID FRANK SHRONTZ CHAIRMAN OF BOEING CO WHICH HAS OPERATIONS IN 35 STATES SUCH WORRIES COULD BE EXACERBATED IF THE ADMINISTRATION DECIDES TO REQUIRE COMPANIES TO CONTRIBUTE A PERCENTAGE OF THEIR PAYROLLS TO HELP PAY FOR HEALTH COVERAGE FOR THEIR WORKERS AND POSSIBLY OTHERS ADMINISTRATION OFFICIALS HAVE BEEN DISCUSSING WHETHER SUCH A TAX CALLED A WAGEBASED PREMIUM SHOULD VARY FROM STATE TO STATE TAKING INTO ACCOUNT DIFFERENCES AMONG THEIR POPULATIONS AND OTHER VARIABLES ORGANIZED LABOR ALSO HAS CONCERNS AS PART OF THE CLINTON HEALTH PLAN THE ADMINISTRATION IS LOOKING AT REVISING THE EMPLOYEE RETIREMENT INCOME SECURITY ACT THE BASIC FEDERAL PENSION LAW IT BLOCKS STATES FROM REGULATING HEALTH BENEFIT PACKAGES PROVIDED BY SELFINSURED COMPANIES UNIONS SAY THAT IF ERISA IS REVAMPED STATES MIGHT GET MIXED UP IN ISSUES THAT CURRENTLY ARE DECIDED BETWEEN LABOR AND MANAGEMENT UNDER FEDERAL GUIDELINES WE WANT TO MAINTAIN THE INTEGRITY OF THE COLLECTIVE BARGAINING PROCESS SAID BOB MCGLOTTEN LEGISLATIVE DIRECTOR AT THE AFLCIO WE DON'T WANT TO SEE IT RIPPED APART BECAUSE OF WHAT THE STATES SAY FOR SOME FEAR ABOUT THE ROLE OF THE STATES IS BROADER ADMINISTRATION OFFICIALS HAVE INDICATED THAT THE STATES WILL BE RESPONSIBLE FOR ENFORCING A NEW PUBLIC AND PRIVATE HEALTH SPENDING BUDGET SETTING UP AND OVERSEEING NEW REGIONAL INSURANCE PURCHASING NETWORKS AND MAKING SURE ALL CITIZENS GET QUALITY MEDICAL CARE BUT OFFICIALS SAY THE STATES WILL BE GIVEN WIDE LATITUDE IN HOW THEY REACH THOSE GOALS THE PROBABILITY THAT SOME STATES MAY TRY THINGS THAT DON'T WORK IS VERY HIGH WARNED THOMAS PYLE A CONSULTANT WHO UNTIL RECENTLY WAS A LEADING ADVISER TO THE WHITE HOUSE HEALTHCARE TASK FORCE THE ADMINISTRATION HE ADDED SEEMS TO BE MOVING IN THE DIRECTION OF ALLOWING EVERY STATE TO DO WHAT IT WANTS TO DO IT'S A DISASTER IN MY OPINION ADMINISTRATION OFFICIALS SAY THEY AIM TO ERECT A FEDERAL FRAMEWORK THAT GUARANTEES THE SAME HEALTH BENEFITS FOR EVERY AMERICAN SETS QUALITY STANDARDS ACROSS THE COUNTRY AND SPECIFIES HOW THE SYSTEM IS TO BE FINANCED BUT THEY SAY STATES SHOULD BE FREE TO TAILOR THE SYSTEM TO THEIR OWN SPECIAL NEEDS WE BELIEVE IN STATE FLEXIBILITY BECAUSE WE BELIEVE IT IS JUST TOO DIVERSE A COUNTRY TO HAVE A SYSTEM THAT'S MICROMANAGED OUT OF WASHINGTON IRA MAGAZINER THE SENIOR WHITE HOUSE ADVISER OVERSEEING THE HEALTH REFORM EFFORT TOLD REPRESENTATIVES OF CONSUMER GROUPS THIS WEEK BUT WE RECOGNIZE THAT THERE NEED TO BE FEDERAL GUARANTEES DAVID HELMS A HEALTH POLICY EXPERT WHO HAS ADVISED THE ADMINISTRATION SAID HE CAN ENVISION STATES SUCH AS MARYLAND AND NEW YORK WANTING TO SET PAYMENT RATES FOR ALL MEDICAL SERVICES AS THEY CURRENTLY DO WITH HOSPITALS BUT STATES SUCH AS COLORADO HE SAID HAVE A DIFFERENT EXPERIENCE AND CULTURE AND MIGHT WANT TO SET UP A LESS CONTROLLED SYSTEM GIVING HEALTHCARE PROVIDERS MORE DISCRETION IN HOW THEY COMPLY WITH THE SPENDING BUDGET NOT SURPRISINGLY GOVERNORS HAVE BEEN PUSHING HARD FOR STATE LEEWAY I LEAVE ENCOURAGED THAT THE PRESIDENT AND THE FIRST LADY ARE VERY COGNIZANT THAT THE STATES ARE WHERE HEALTH CARE IS DELIVERED AND THAT WE MUST BE ALLOWED SOME FLEXIBILITY SAID REPUBLICAN GOV CARROLL CAMPBELL OF SOUTH CAROLINA AFTER A MEETING LAST MONTH WITH THE CLINTONS STILL EVEN GOVERNORS HAVE SOME APPREHENSION ABOUT JUST HOW MUCH THE STATES WILL BE ASKED TO DO DEMOCRATIC GOV ROY ROMER OF COLORADO WHO LEADS THE NATIONAL GOVERNORS ASSOCIATION SAID THAT IF A STATE EXCEEDS ITS ALLOTTED HEALTHCARE BUDGET THE FEDERAL GOVERNMENT SHOULD BEAR SOME OF THE BURDEN I DON'T THINK YOU CAN LEAVE THAT ENTIRELY ON THE STATE'S BACK HE SAID CLEARLY THOUGH IT'S THE BUSINESS COMMUNITY THAT HAS THE GREATEST ANXIETY OVER WHAT PART THE STATES WILL PLAY IN HEALTHCARE REFORM GIVING CONTROL TO THE STATES MOVES EVERYTHING BACK 30 OR 40 YEARS SAID MARK UGORETZ HEAD OF THE ERISA INDUSTRY COMMITTEE WHICH REPRESENTS 125 OF THE NATION'S BIGGEST COMPANIES ON BENEFIT MATTERS ONE OF THE REASONS THAT CONGRESS ENACTED ERISA IS THAT IT DIDN'T LIKE THE WAY STATES WERE HANDLING HEALTH CARE SHARON CANNER A VICE PRESIDENT AT THE NATIONAL ASSOCIATION OF MANUFACTURERS NOTES THAT A NUMBER OF STATES ARE ALREADY PURSUING THEIR OWN HEALTHCARE REFORM PROGRAMS HER FEAR IS THAT THEY WILL GET THEIR NEW SYSTEMS UP AND RUNNING BEFORE THE CLINTON PLAN CAN TAKE EFFECT THE MORE STATES HAVE IN PLACE SHE SAID THE HARDER IT'S GOING TO BE TO MOVE TO A FEDERAL SYSTEM IAN OLGEIRSON CONTRIBUTED TO THIS ARTICLE 9305130051 930513 BUSINESS BRIEF CYPRESS SEMICONDUCTOR CORP COMPANY TO SELL ROSS UNIT TO FUJITSU FOR 23 MILLION CYPRESS SEMICONDUCTOR CORP BASED IN SAN JOSE CALIF SAID IT PLANS TO SELL ITS ROSS TECHNOLOGY UNIT TO JAPAN'S FUJITSU LTD FOR 23 MILLION THE PLANNED SALE APPEARS TO SETTLE THE FATE OF ROSS WHICH HAS INCURRED LOSSES FOR THE PAST SEVERAL QUARTERS AND HAS DRAGGED DOWN CYPRESS'S EARNINGS PROMPTING CYPRESS'S CHIEF EXECUTIVE OFFICER TJ RODGERS TO THREATEN TO SHUT DOWN THE UNIT IF IT SOON DIDN'T ACHIEVE PROFITABILITY ROSS BASED IN AUSTIN TEXAS DEVELOPED CHIPS USED IN COMPUTERS MADE BY SUN MICROSYSTEMS INC BUT SALES OF THOSE CHIPS SHRIVELED LAST YEAR WHEN SUN DECIDED TO USE INSTEAD CHIPS MADE BY TEXAS INSTRUMENTS INC FOR ITS NEW COMPUTER LINES SALES SUDDENLY SHRANK TO 6 OF TOTAL CYPRESS REVENUE FROM ABOUT 20 IN MID1991 BRETT HODESS AN ANALYST WITH MONTGOMERY SECURITIES SAID CYPRESS SHOULD BEGIN TO SEE IMPROVED PROFIT MARGINS DURING THE SECOND HALF OF 1993 9305130050 930513 TECHNOLOGY BRIEF MITSUBISHI ELECTRIC CORP COMPANY JOINS PARTNERSHIP WITH SEMICONDUCTOR MAKER JAPAN'S MITSUBISHI ELECTRIC CORP AND FRANCOITALIAN SEMICONDUCTOR MAKER SGSTHOMSON MICROELECTRONICS NV WILL WORK TOGETHER ON FLASH MEMORY PRODUCTS IN A JOINT COMMUNIQUE YESTERDAY THE COMPANIES SAID THEY WILL DEVELOP A NEW GENERATION OF HIGHDENSITY FLASH MEMORIES BASED ON 16MEGABIT DEVICES USING 05MICRON COMPLEMENTARY METAL OXIDE SEMICONDUCTOR WAFER PROCESS TECHNOLOGY THE AGREEMENT ALSO FORESEES RECIPROCAL MANUFACTURING OF 16MEGABIT FLASH PRODUCTS A NUMBER OF OTHER PARTNERSHIPS HAVE FORMED IN THE EMERGING FLASHMEMORY MARKET SUCH AS INTEL CORP WHICH DOMINATES THE WORLD FLASH MARKET WITH AN ESTIMATED 70 MARKET SHARE AND SHARP CORP OF JAPAN FUJITSU LTD OF JAPAN AND ADVANCED MICRO DEVICES INC OF THE US AND TOSHIBA CORP OF JAPAN NATIONAL SEMICONDUCTOR CORP OF THE US AND SAMSUNG ELECTRONICS CO OF SOUTH KOREA THE TWO COMPANIES SAID THAT THEY WILL BEAR THEIR OWN COSTS AND NO MONEY WILL CHANGE HANDS THEY DIDN'T SAY WHAT THE VALUE WILL BE 9305130049 930513 WHO'S NEWS STAR BANC CORP NAMES JERRY A GRUNDHOFER ITS CEO AND PRESIDENT STAR BANC CORP REACHING OUTSIDE THE ORGANIZATION NAMED JERRY A GRUNDHOFER A FORMER BANKAMERICA CORP AND SECURITY PACIFIC CORP EXECUTIVE ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR GRUNDHOFER 48 SUCCEEDS THE CINCINNATI BANK HOLDING COMPANY'S LONGTIME LEADER OLIVER W WADDELL AS PRESIDENT AND CEO THE 62YEAROLD MR WADDELL WILL REMAIN CHAIRMAN DURING THE TRANSITION HE HAS TOLD STAR'S BOARD HE WILL STEP DOWN WELL BEFORE HIS MANDATORY RETIREMENT AGE OF 65 FOR PERSONAL REASONS A SPOKESMAN SAID MR GRUNDHOFER WHO BECOMES PRESIDENT IMMEDIATELY AND CEO ON JUNE 15 TAKES COMMAND OF A STRONG CINCINNATIBASED BANK THAT RESISTED A TAKEOVER ATTEMPT LAST YEAR BY CROSSTOWN RIVAL FIFTH THIRD BANCORP STAR HAS SINCE IMPROVED PROFITABILITY BY CUTTING COSTS AND RAISING PRICES ANALYSTS SAID MR WADDELL WHO BECAME CHAIRMAN IN 1983 HAD TALKED FOR SOME TIME OF HIS DESIRE TO RETIRE EARLY JERRY GRUNDHOFER'S STARTING OUT THERE WITH A VERY STRONG BANK SAID KENNETH PUGLISI ANALYST WITH CHICAGO CORP IF HE CAN MAKE IT STRONGER IT'LL BE A DYNAMITE ORGANIZATION HE'S GOT OPTIONS HE CAN TURN IT INTO A PREMIER PERFORMER IF HE WANTS TO SELL IT THERE WILL BE BUYERS WE KNOW THERE'S ONE RIGHT ACROSS THE STREET FOR THE FIRST QUARTER STAR POSTED NET INCOME OF 249 MILLION OR 84 CENTS A SHARE A 412 INCREASE FROM A YEAR EARLIER RETURN ON AVERAGE ASSETS WAS 135 COMPARED WITH 108 A YEAR AGO RETURN ON AVERAGE EQUITY WAS 1648 UP FROM 1262 LAST YEAR ASSETS TOTALED 74 BILLION AS OF MARCH 31 MR GRUNDHOFER WHO IS THE YOUNGER BROTHER OF JOHN F GRUNDHOFER CHAIRMAN OF MINNEAPOLISBASED FIRST BANK SYSTEM INC SAID HE WAS CHOSEN BY A BOARD COMMITTEE THAT INCLUDED MR WADDELL AND OUTSIDE DIRECTORS WE GOT TO KNOW EACH OTHER AND STARTED TALKING OVER THE LAST FEW MONTHS THINGS STARTED TO HEAT UP A BIT AND WE DECIDED THIS WAS A GREAT OPPORTUNITY FOR ME AND MY FAMILY MR GRUNDHOFER SAID I'M QUITE FAMILIAR WITH THE FUNDAMENTAL BUSINESSES STAR BANC IS IN WHOLESALE RETAIL AND TRUST AREAS I UNDERSTAND THEM AND CAN ADD VALUE TO THOSE MR GRUNDHOFER WAS PRESIDENT OF SECURITY PACIFIC LOS ANGELES WHEN IT WAS ACQUIRED BY SAN FRANCISCOBASED BANKAMERICA IN A 42 BILLION TRANSACTION COMPLETED LAST YEAR WHILE AT SECURITY PACIFIC HE WAS CONSIDERED ON TRACK TO BECOME CHAIRMAN AND CEO AFTER THE MERGER HE BECAME VICE CHAIRMAN OF BANKAMERICA IN CHARGE OF CALIFORNIA COMMERCIAL BANKING COMMERCIAL REAL ESTATE AND INSTITUTIONAL TRUST AND INVESTMENT SERVICES MR GRUNDHOFER LEFT BANKAMERICA IN LATE APRIL EXERCISING A SEVERANCE PACKAGE THAT INCLUDED A PAYMENT THREE TIMES HIS SALARY AND OTHER COMPENSATION IN 1991 MR GRUNDHOFER HAD A BASE SALARY OF 375000 PLUS 125000 IN INCENTIVE PAY AND BENEFITS HE IS ONE OF THREE TOP SECURITY PACIFIC EXECUTIVES WHO RECENTLY LEFT BANKAMERICA IN THE WAKE OF THE MERGER HE COMES FROM A COSTCONSCIOUS ENVIRONMENT AND HAS A GOOD BACKGROUND IN RUNNING BANKS EFFICIENTLY SAID RONALD I MANDLE ANALYST WITH SANFORD C BERNSTEIN WHO COVERED SECURITY PACIFIC THIS IS A CHANCE FOR GRUNDHOFER TO RUN HIS OWN SHOW 9305130048 930513 CREDIT MARKETS BOND PRICES DECLINE AFTER SURPRISING INCREASE IN PRODUCER FIGURES SPURS INFLATION ANXIETIES BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BOND PRICES SLUMPED YESTERDAY AFTER THE GOVERNMENT SET OFF INFLATION ALARM BELLS BY REPORTING A SURPRISING SURGE IN PRODUCER PRICES LAST MONTH EARLY IN THE MORNING THE LABOR DEPARTMENT STARTLED INVESTORS BY REPORTING PRODUCER PRICES JUMPED 06 IN APRIL THAT WAS THREE TIMES AS BIG AN INCREASE AS ANALYSTS GENERALLY HAD EXPECTED SOME LONGTERM TREASURY BONDS INITIALLY SANK ABOUT 7/8 POINT OR 875 FOR EACH 1000 FACE AMOUNT THEY LATER RECOVERED SOMEWHAT TO END THE DAY WITH LOSSES OF MORE THAN HALF A POINT THE TREASURY'S BENCHMARK 30YEAR ISSUE DROPPED 18/32 OF A POINT TO 103 3/8 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE ROSE TO 686 FROM 681 PRICES ALSO FELL AND YIELDS ROSE ON MUNICIPAL BONDS INVESTMENTGRADE CORPORATE SECURITIES AND MORTGAGE SECURITIES ECONOMISTS ARGUED THAT THE PRODUCER PRICE INCREASE PROBABLY REPRESENTS NOTHING MORE THAN A ONEMONTH FLUKE AND WILL EVENTUALLY BE VIEWED AS THE LATEST IN A LONG LINE OF PHONY INFLATION SCARES THE INCREASE WAS AN ABERRATION AND DOES NOT POINT TO A PICKUP IN THE UNDERLYING RATE OF INFLATION SAID BRUCE STEINBERG SENIOR ECONOMIST AT MERRILL LYNCH & CO INFLATION FUNDAMENTALS REMAIN EXTREMELY FAVORABLE WAGE PRESSURES ARE MINIMAL AND INDUSTRIAL COMMODITY PRICES ARE DECLINING THE BOND MARKET'S SUDDEN SWOON CAME AT A PARTICULARLY BAD TIME FOR THE TREASURY WHICH IS SELLING 35 BILLION OF NOTES AND BONDS THIS WEEK AS PRICES FELL AND YIELDS ROSE THE TREASURY WAS FORCED TO PAY MORE TO SELL 10YEAR NOTES THAN TRADERS HAD EXPECTED AS RECENTLY AS TUESDAY NIGHT THE AVERAGE YIELD ON 1076 BILLION OF 10YEAR TREASURY NOTES SOLD YESTERDAY BY THE GOVERNMENT WAS 596 AS RECENTLY AS TUESDAY EVENING THESE NOTES WERE TRADING ON A WHENISSUED BASIS AT 588 THE INFLATION REPORT WAS A SUCKER PUNCH TO THE BOND MARKETS AND TO YESTERDAY'S 10YEAR TREASURY NOTE AUCTION SAID ROBERT A BRUSCA SENIOR VICE PRESIDENT AT NIKKO SECURITIES INTERNATIONAL INC IT WAS COMPLETELY UNEXPECTED IT WAS REALLY A NASTY SURPRISE AND CREATED TURMOIL JUST BEFORE THE AUCTION DEADLINE TODAY THE TREASURY WILL COMPLETE ITS THREEPART FINANCING WITH THE SALE OF ABOUT 825 BILLION OF 30YEAR BONDS EXPECTED TO YIELD NEARLY 69 THE FIRST PART OF THE FINANCING CAME TUESDAY WITH THE SALE OF 1617 BILLION OF THREEYEAR TREASURY NOTES AT AN AVERAGE YIELD OF 427 MORE BAD NEWS MAY HIT THE MARKETS TODAY THIS MORNING THE GOVERNMENT WILL RELEASE ITS APRIL CONSUMER PRICE REPORT ANALYSTS GENERALLY EXPECT AN INCREASE OF 03 COMPARED WITH ONLY 01 IN MARCH BUT SOME ANALYSTS LATE YESTERDAY WERE REVISING THEIR FORECASTS UPWARD BECAUSE OF THE STARTLING PRODUCER PRICE NEWS ALSO TO BE RELEASED TODAY WILL BE THE GOVERNMENT'S REPORT ON APRIL RETAIL SALES THAT REPORT IS EXPECTED TO SHOW A 12 GAIN COMPARED WITH A 1 DROP IN MARCH GETTING STRONG RETAIL SALES NEWS AT THE SAME TIME YOU'RE GETTING BAD INFLATION NEWS WOULD BE A ONETWO KNOCKOUT PUNCH FOR THE BOND MARKET WARNED MR BRUSCA OF NIKKO WE THINK SEVERAL SPECIAL FACTORS CONTRIBUTED TO THE 06 INCREASE IN PRODUCER PRICES IN APRIL AND THOSE FACTORS ARE NOT INDICATIVE OF A HIGHER INFLATIONARY TREND SAID KATHLEEN M CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC A NEW YORK ECONOMIC AND INVESTMENT ADVISORY COMPANY THE TREASURY RECEIVED BIDS TOTALING 2619 BILLION FOR THE 1076 BILLION THAT IT ACCEPTED THUS THE TREASURY RECEIVED 243 TIMES AS MANY BIDS AS THE AMOUNT OF BONDS IT ACTUALLY SOLD THAT COVER RATIO WAS DOWN FROM AN AVERAGE OF 254 OVER THE PREVIOUS 12 AUCTIONS OF 10YEAR NOTES MS CAMILLI SAID I THINK THERE STILL ARE LARGE AMOUNTS OF MONEY ON THE SIDELINES THAT WILL EVENTUALLY BE INVESTED IN LONGERTERM ISSUES ONCE THE REFUNDING IS OVER SHE ADDED PRICES OF INTERMEDIATETERM TREASURY ISSUES FELL SLIGHTLY YESTERDAY CAUGHT UP IN THE BOND MARKET SLUMP CREATED BY AN UNEXPECTED SURGE IN PRODUCER PRICES LAST MONTH SOME TRADERS SAID THE PRODUCER PRICE REPORT REDUCES CHANCES FOR A CREDITEASING MOVE BY THE FEDERAL RESERVE ANYTIME SOON THE FED'S POLICYMAKING COMMITTEE THE FEDERAL OPEN MARKET COMMITTEE WILL HOLD ITS NEXT REGULARLY SCHEDULED MEETING ON MAY 18 AMONG ACTIVE ISSUES THE 3875 NOTES DUE IN TWO YEARS FELL 2/32 POINT TO 100 4/32 RAISING THE YIELD TO 379 FROM 376 THE 5125 NOTES DUE IN FIVE YEARS FELL 5/32 TO 100 11/32 THEIR YIELD ROSE TO 503 FROM 500 THE 55 NOTES DUE IN SEVEN YEARS FELL ABOUT 1/4 POINT TO 99 24/32 WHILE THE YIELD ROSE TO 553 FROM 549 YIELDS WERE LITTLE CHANGED ON SHORTTERM TREASURY BILLS FOR EXAMPLE THE YIELD ON THE LATEST THREEMONTH BILLS ROSE SLIGHTLY TO 290 FROM 289 HERE ARE DETAILS OF THE TREASURY'S 10YEAR NOTE SALE YESTERDAY 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 2003 GERMAN GOVERNMENT BOND PRICES RALLIED YESTERDAY IN ACTIVE TRADING BUOYED BY LOWER SHORTTERM INTEREST RATES AND HOPES FOR ADDITIONAL CREDITEASING MOVES BY GERMANY'S CENTRAL BANK TRADERS WERE ENCOURAGED BY AN 011 PERCENTAGE POINT DROP IN A KEY MONEYMARKET RATE YESTERDAY IN THE WAKE OF THE GERMAN CENTRAL BANK'S WEEKLY SECURITIES REPURCHASE OPERATION SAID JOHN LIPSKY CHIEF ECONOMIST AND MANAGING DIRECTOR AT SALOMON BROTHERS INC THAT MOVE CONFIRMED MARKET EXPECTATIONS THAT THE BUNDESBANK IS ACTIVELY EASING MONETARY POLICY MR LIPSKY SAID SOME ACTIVELY TRADED ISSUES ROSE ABOUT 045 POINT GERMANY'S 675 BONDS DUE IN 2003 ROSE TO 10019 FROM 99825 WHILE THE YIELD FELL TO 672 ON AN ANNUAL BASIS FROM 677 MR LIPSKY SAID MUNICIPAL BOND PRICES FELL ALTHOUGH NOT AS MUCH AS US TREASURY BONDS DID ACTIVE STATE AND LOCAL GOVERNMENT BONDS SLIPPED ABOUT 1/8 POINT TO 3/8 POINT FOR EXAMPLE THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY'S 550 REVENUE REFUNDING BONDS DUE 2021 DROPPED 3/8 POINT TO 96 3/8 TO YIELD 575 THE HAWAII STATE DEPARTMENT OF BUDGET & FINANCE'S SPECIAL PURPOSE MORTGAGE REVENUE REFUNDING BONDS CLOSED 1/8 LOWER AT 99 1/8 BID TO YIELD 603 IN THE NEWISSUE ARENA ACTIVITY SLOWED CONSIDERABLY AFTER TUESDAY'S 2 BILLION DELUGE THE LARGEST NEW OFFERING YESTERDAY WAS THE NEW YORK STATE URBAN DEVELOPMENT CORP'S APPROXIMATELY 670 MILLION OF BONDS BONDS PRICES OF INVESTMENTGRADE CORPORATE BONDS FELL 1/8 TO 3/8 HOWEVER CORPORATE BONDS IN SPECIFIC SECTORS PERFORMED BETTER THAN THE OVERALL MARKET INCLUDING UTILITIES AND CANADIAN YANKEE ISSUES TRADERS SAID YANKEE BONDS ARE DOLLARDENOMINATED SECURITIES ISSUED BY FOREIGN COUNTRIES AND COMPANIES SPREADS OR THE YIELD DIFFERENTIAL BETWEEN CORPORATE BONDS IN THESE SECTORS AND COMPARABLE TREASURYS NARROWED BY 005 TO 010 PERCENTAGE POINT A SIGN OF STRONG INVESTOR DEMAND NEW CORPORATE ISSUANCE REMAINED SLACK LAMAR ADVERTISING CO PRICED 100 MILLION OF 10YEAR SENIOR SECURED NOTES TO YIELD 11 NONCALLABLE FOR FIVE YEARS THE ISSUE IS RATED SINGLEB2 BY MOODY'S INVESTORS SERVICES INC AND SINGLEB BY STANDARD & POOR'S CORP KENDALL CO PRICED 100 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES AT PAR TO YIELD 825 NONCALLABLE FOR FIVE YEARS THE ISSUE IS RATED BA3 BY MOODY'S AND DOUBLEBMINUS BY S&P PRICES OF MORTGAGEBACKED ISSUES ENDED SLIGHTLY LOWER IN SECONDARY TRADING FEDERAL HOME LOAN MORTGAGE CORP AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ENDED 1/8 LOWER AT 101 19/32 AND 101 14/32 RESPECTIVELY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ENDED 3/16 LOWER AT 101 1/8 THERE WERE NO NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS ANNOUNCED PRUDENTIAL SECURITIES INC INCREASED FANNIE MAE SERIES 199392 TO 140 MILLION FROM 75 MILLION FANNIE MAE ANNOUNCED THAT IT HAD ISSUED 128 BILLION OF MORTGAGEBACKED SECURITIES IN APRIL UP FROM 98 BILLION IN MARCH AND HAD ANNUALIZED GROWTH OF 202 IN ITS MORTGAGE PORTFOLIO TO A RECORD 1619 BILLION CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9305130047 930513 BUSINESS BRIEF LAYNE INC WELL DRILLER EXPECTS TO POST LOSS FOR FISCAL 4TH QUARTER LAYNE INC SAID IT EXPECTS TO REPORT A SIGNIFICANT LOSS FOR THE FISCAL FOURTH QUARTER ENDED APRIL 30 BECAUSE OF A DOWNTURN IN ITS BUSINESS THE COMPANY SAID CONTINUING SOFT DEMAND FOR ITS SERVICES INCLEMENT WEATHER DURING THE FISCAL FOURTH QUARTER AND A WEAK ECONOMY CONTRIBUTED TO THE LOSS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY LAYNE CLOSED AT 5625 DOWN 1125 9305130046 930513 NEW YORK MERC RAISES BID FOR COMMODITY EXCHANGE NEW YORK THE NEW YORK MERCANTILE EXCHANGE DOUBLED THE CASH OFFER FOR NEW YORK'S COMMODITY EXCHANGE TO 20 MILLION AND THE COMEX SAID ITS DIRECTORS WILL DISCUSS THE NEW BID TODAY A COMEX OFFICIAL SAID THE REGULARLY SCHEDULED MEETING WILL PROVIDE THE COMEX BOARD ITS FIRST OPPORTUNITY TO REVIEW THE TERMS OF THE ORIGINAL APRIL 27 BID FROM THE NEW YORK MERC THE WORLD'S LARGEST ENERGY FUTURES MARKET BUT HE EMPHASIZED THAT WITH A BULLISH MARKET UNDER WAY FOR GOLD AND SILVER THERE IS LITTLE ENTHUSIASM AT THE WORLD'S LARGEST PRECIOUS METALS EXCHANGE FOR ANY BID BELOW 60 MILLION EARLIER THIS YEAR THE COMEX BOARD HAD ACCEPTED IN PRINCIPLE A TAKEOVER OFFER FROM THE CHICAGO BOARD OF TRADE BUT THAT JANUARY OFFER WHICH INVOLVED NO CASH AND NO ACCESS TO THE CBOT'S SUCCESSFUL INTERESTRATE AND AGRICULTURE FUTURES CONTRACTS FOR COMEX MEMBERS MET STIFF RESISTANCE FROM COMEX FLOOR TRADERS AND WAS EVENTUALLY WITHDRAWN DAYS AFTER THE WITHDRAWAL OF THAT OFFER THE NEW YORK MERC STEPPED IN WITH A PROPOSAL TO CONSOLIDATE TRADERS AT THE COMEX EMBOLDENED BY THEIR BRIGHTER TRADING PROSPECTS HAVE SHOWN LITTLE ENTHUSIASM ABOUT THE OFFER FROM THE OUTSET NOTING THAT EARLIER EFFORTS TO CONSOLIDATE THE COMEX AND THE NEW YORK MERC FAILED OFTEN OVER PERSONALITY DIFFERENCES AND TURF DISPUTES BEFORE COMING TO A VOTE 9305130045 930513 BUSINESS BRIEF ZALE CORP CREDITORS APPROVE PROPOSAL FOR REORGANIZATION OF FIRM ZALE CORP DALLAS SAID ITS CREDITORS APPROVED ITS REORGANIZATION PLAN AND A JUDGE SCHEDULED CONFIRMATION HEARINGS ON IT NEXT WEEK SETTING THE STAGE FOR THE COMPANY'S EMERGENCE FROM BANKRUPTCYCOURT PROTECTION THE JEWELRY RETAILER SAID IT NEEDED THE VOTES OF HALF OF THE CREDITORS AND TWOTHIRDS OF THE 16 BILLION TOTAL OUTSTANDING DEBT HELD APPROVAL OF THE PLAN WAS GRANTED OVERWHELMINGLY BY ITS CREDITORS THE COMPANY SAID THE PLAN WAS JOINTLY PROPOSED BY ZALE AND ALL THE OFFICIAL CREDITOR COMMITTEES ITS AD HOC TRADE GROUPS AND ITS BANK GROUPS ZALE SAID THE COMPANY ALSO SAID CONFIRMATION HEARINGS ON THE PLAN ARE SET TO BEGIN IN FEDERAL COURT IN DALLAS WEDNESDAY ANDREAS LUDWIG ZALE'S CHIEF FINANCIAL OFFICER SAID HE EXPECTS THE COMPANY WILL EMERGE FROM BANKRUPTCY PROTECTION BY MIDSUMMER ZALE FILED FOR BANKRUPTCYCOURT PROTECTION IN JANUARY 1992 9305130044 930513 CLINTON APPEARANCE HELPS FUND DEMOCRATIC PARTY NEW YORK PRESIDENT CLINTON HELPED RAISE MORE THAN 29 MILLION FOR THE DEMOCRATIC NATIONAL COMMITTEE WITH HIS APPEARANCE AT A DINNER AT LINCOLN CENTER THE APPEARANCE LAST NIGHT WAS PART OF A SERIES OF BIG FUNDRAISING EVENTS FOR THE PARTY THE NEXT WILL BE HELD IN WASHINGTON ON JUNE 28 AT THE CONVENTION CENTER PARTY OFFICIALS SAY THEY HAVE RAISED 3 MILLION TO 4 MILLION MORE THAN THEIR PROJECTIONS THUS FAR THE NEW YORK EVENT WAS EXPECTED TO BRING IN 15 MILLION BUT THE PARTY HAD COLLECTED 29 MILLION BY THE BEGINNING OF THIS WEEK 9305130043 930513 BUSINESS BRIEF HEALTHVEST PLAN ADVANCES TO ACQUIRE INTEREST IN HOSPITAL CONCERN HEALTHVEST AN AUSTIN TEXAS REAL ESTATE INVESTMENT TRUST MOVED FORWARD ON ITS PROPOSED ACQUISITION OF GREENERY REHABILITATION GROUP INC'S CONTROLLING INTEREST IN AND CLAIMS AGAINST HEALTHCARE INTERNATIONAL INC WHICH FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN 1991 HEALTHVEST HAD SUBMITTED ITS ACQUISITION PROPOSAL TO A FEDERAL BANKRUPTCY COURT WHICH DECIDED ITS APPROVAL WAS NOT NECESSARY HEALTHVEST WHICH OWNS MANY OF HEALTHCARE'S HOSPITALS ALSO DISCLOSED TERMS OF ITS AGREEMENT WITH GREENERY A NEWTON MASS COMPANY THAT OPERATES 21 REHABILITATION AND NURSING CENTERS UNDER THE DEAL WHICH HEALTHVEST SAID IS SCHEDULED TO CLOSE MAY 20 HEALTHVEST WILL PAY GREENERY A 7 MILLION SECURED PROMISSORY NOTE A PROPERTY IN AUSTIN AND 500000 SHARES OF HEALTHVEST STOCK GREENERY WILL AGREE NOT TO ACQUIRE ADDITIONAL SHARES OF HEALTHVEST FOR FOUR YEARS HEALTHVEST SAID IN LATE AMERICAN STOCK EXCHANGE TRADING YESTERDAY HEALTHVEST WAS UP 25 CENTS TO 319 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING GREENERY SHARES ROSE 125 CENTS TO 3125 9305130042 930513 BUSINESS BRIEF CERIDIAN CORP CONCERN'S SHAREHOLDERS VOTE TO ELIMINATE THE POISON PILL CERIDIAN CORP MINNEAPOLIS SAID SHAREHOLDERS VOTED TO ELIMINATE ITS POISON PILL PLAN A MOVE THAT A SHAREHOLDER ACTIVIST GROUP THAT PUSHED FOR THE CHANGE SAID WAS VERY UNUSUAL THE INFORMATION MANAGEMENT FIRM SAID 69 OF THE SHAREHOLDERS WHO VOTED ON THE PROPOSAL FAVORED OVERTURNING IT A SPOKESMAN FOR THE WASHINGTON BASED UNITED SHAREHOLDERS ASSOCIATION DAVID GITLITZ SAID THE GROUP PROPOSED ELIMINATING THE PLAN LAST YEAR ITS PROPOSAL WAS LATER WITHDRAWN AFTER THE COMPANY AGREED TO PUT THE ISSUE TO A SHAREHOLDER VOTE AT THIS YEAR'S ANNUAL MEETING SHAREHOLDER RIGHTS PLANS OR POISON PILLS ARE DESIGNED TO DETER HOSTILE TAKEOVERS BY MAKING THEM EXPENSIVE THEY CAN ALSO STRENGTHEN A BOARD OR MANAGEMENT'S NEGOTIATING POSITION WITH A WOULDBE ACQUIRER WHEN CERIDIAN'S PLAN WAS IN PLACE IF A POTENTIAL ACQUIRER HAD BOUGHT MORE THAN 20 OF THE COMPANY'S OUTSTANDING SHARES WITHOUT SUPPORT FROM THE COMPANY'S BOARD IT WOULD HAVE TRIGGERED THE DISTRIBUTION OF RIGHTS TO EXISTING SHAREHOLDERS ALLOWING THEM TO PURCHASE COMPANY STOCK AT A LARGE DISCOUNT 9305130041 930513 BUSINESS BRIEF MAGELLAN PETROLEUM CORP SAGASCO MAKES TENDER OFFER VALUING FIRM AT 37 MILLION SAGASCO HOLDINGS LTD OF AUSTRALIA LAUNCHED A TENDER OFFER OF 150 A SHARE FOR MAGELLAN PETROLEUM CORP VALUING THE COMPANY AT 37 MILLION SHARES OF MAGELLAN A HARTFORD CONN CONCERN WHOSE MAIN OIL AND GAS ASSETS ARE IN AUSTRALIA ROSE 4375 CENTS TO 1375 IN LATE OVERTHECOUNTER TRADING THE UNSOLICITED OFFER IS CONDITIONAL ON RECEIVING TENDERS FOR AT LEAST 90 OF ALL COMMON SHARES SAGASCO SAID THE OFFER WILL CLOSE JUNE 9 SAGASCO CURRENTLY HOLDS ABOUT 136 OF MAGELLAN'S 244 MILLION SHARES OUTSTANDING IN A LETTER TO MAGELLAN'S BOARD SAGASCO CHIEF EXECUTIVE FRASER AINSWORTH SAID SAGASCO WOULD PREFER A NEGOTIATED MERGER AT THE SAME PRICE AS PREVIOUSLY REPORTED SAGASCO HAD BEEN SEEKING TO ACQUIRE MAGELLAN'S AUSTRALIAN SUBSIDIARY BUT HAS BEEN HELD UP IN THAT EFFORT BY COURT ACTION SAGASCO HAS ASKED MAGELLAN TO RESPOND TO THE MERGER PROPOSAL BEFORE MAY 26 A SPOKESMAN FOR MAGELLAN SAID THE COMPANY WOULDN'T COMMENT UNTIL ITS BOARD MEETS 9305130040 930513 BUSINESS BRIEF EQUITABLE COS UNIT OF TEXTRON TO MANAGE DISABILITY INCOME BUSINESS NEW YORKBASED EQUITABLE COS TRYING TO IMPROVE RESULTS IN ITS MONEYLOSING DISABILITY INCOME BUSINESS REACHED AN AGREEMENT FOR PAUL REVERE LIFE INSURANCE CO TO MANAGE THE OPERATION PAUL REVERE A UNIT OF PROVIDENCE RIBASED TEXTRON INC WILL MANAGE THE POLICIES ALREADY ON EQUITABLE'S BOOKS AS WELL AS UNDERWRITE AND MANAGE ANY NEW BUSINESS SOLD BY EQUITABLE'S AGENTS THE DEAL COMES TWO MONTHS AFTER A SIMILAR PROPOSED AGREEMENT WITH UNUM CORP COLLAPSED THE AGREEMENT REQUIRES REGULATORY APPROVAL PAUL REVERE IS A LEADER IN THE DISABILITY INSURANCE BUSINESS AND EQUITABLE HOPES ITS EXPERTISE IN MANAGING CLAIMS WILL HELP STEM THE FLOW OF RED INK THE DISABILITY BUSINESS REPORTED A LOSS OF 316 MILLION IN THE 1993 FIRST QUARTER IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY EQUITABLE CLOSED AT 22125 UP 375 CENTS 9305130039 930513 COMMODITIES GOLD FUTURES PRICES TOP 360 RESISTANCE LEVEL WITH 450 GAIN IN FRENETIC AFTERNOON TRADING BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES HURDLED OVER THE KEY 360ANOUNCE LEVEL SETTLING WITH A GAIN OF 450 AT 36180 ON THE ACTIVE JUNE CONTRACT TRADERS SAID THE MARKET EXPLODED IN A SURGE OF BUYING ACTIVITY NEAR THE END OF THE SESSION PUSHING THE METAL TO ITS HIGHEST CLOSE SINCE DECEMBER 1991 ON NEW YORK'S COMMODITY EXCHANGE IN THE LAST THREE MINUTES OF TRADING ALONE JUNE GOLD SHOT UP 250 THEY SAID A LACKLUSTER MORNING GAVE WAY TO INCREDIBLY AGGRESSIVE FUND BUYING SAID SCOTT MEYERS SENIOR ANALYST WITH REDEL TRADING AND THE MARKET JUST SHOT FORWARD TO THE CLOSE THE BREACH OF THE 360 RESISTANCE LEVEL IN LATE INTRADAY TRADING USHERED IN A WAVE OF FURTHER BUYING BY BIG INSTITUTIONAL INVESTORS WHO HAD BEEN WAITING TO SEE IF A MOVE ABOVE THAT KEY LEVEL COULD BE SUSTAINED HE SAID WE HIT A LOT OF BUY STOPS ABOVE 360 MR MEYERS ADDED A BUY STOP ALLOWS AN INVESTOR TO AUTOMATICALLY EXECUTE A BUY ORDER AT A PREDETERMINED LEVEL MR MEYERS WHO TRACKS COMMODITIES MARKETS ON A TECHNICAL OR HISTORICAL PRICETREND BASIS PREDICTED THAT THE NEXT RESISTANCE LEVEL FOR THE JUNE CONTRACT WOULD EMERGE AROUND 371 THE DECEMBER 1991 HIGH DEALERS AND ANALYSTS WERE AT A LOSS HOWEVER TO PINPOINT A SPECIFIC TRIGGER FOR THE DAY'S MOSTLY TECHNICAL RALLY SEVERAL TRADERS SAID THAT GOLD THE CLASSIC HEDGE AGAINST INFLATION GOT SOME SUPPORT EARLY IN THE DAY FROM AN UNEXPECTEDLY STRONG 06 RISE IN APRIL IN THE PRODUCER PRICE INDEX AS WELL AS FROM A RISING YIELD ON THE US 30YEAR BOND EXPECTATIONS HAD BEEN FOR A 02 INCREASE IN THE PPI BUT OTHER MARKET WATCHERS SAID THAT INFLATIONARY CONCERNS REMAIN MINIMAL IN THE CURRENT SLOWGROWTH GLOBAL ECONOMY AND ARE NOT DRIVING GOLD HIGHER INSTEAD THEY ARGUE THAT THE GOLD RALLY IS BEING DRIVEN BY SPECULATIVE DEMAND BY A FUNDAMENTAL IMPROVEMENT IN THE SUPPLYANDDEMAND BALANCE FOR THE METAL AS A RAW MATERIAL AND BY CONCERN AMONG SOME LARGE INVESTORS THAT STOCK AND BOND PRICES ARE TRADING AT UNSUSTAINABLE LEVELS I DON'T THINK THE PRODUCER PRICE REPORT WAS THE CAUSE SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH THE SURGE IN THAT INFLATION BAROMETER WAS AN ABERRATION DUE TO THE WEATHER THAT CAUSED FOOD PRICES TO SOAR HE SAID IT ALSO FEATURED HIGHER AUTO AND TOBACCO PRICES WHICH ARE UNLIKELY TO BE SUSTAINED HE ADDED TRADERS SAID THE GOLD FUTURES MARKET WILL PROBABLY HAVE A MUTED RESPONSE TO TODAY'S RELEASE OF THE CONSUMER PRICE INDEX AS A FURTHER CLUE TO THE INFLATIONARY OUTLOOK FOR NOW THE MARKET SEEMS SET TO FOLLOW TECHNICAL TRADING PATTERNS THEY SAID THE RECENT RALLY IN GOLD WILL CONTINUE IN FITS AND STARTS MR O'NEILL PREDICTED PRODUCER SELLING IS STILL A THREAT OVERHANGING THE MARKET BUT THIS MARKET IS MUCH BETTER ABLE TO ABSORB THAT SELLING THAN DURING THE THIN RELATIVELY ILLIQUID CONDITIONS PREVAILING JUST A FEW MONTHS AGO HE SAID DEALERS SAID YESTERDAY'S POWERFUL RISE IN THE PRECIOUS METAL WAS ALL THE MORE NOTEWORTHY BECAUSE IT CAME AMID A RELATIVELY STABLE PERFORMANCE BY THE DOLLAR ON FOREIGN EXCHANGE MARKETS GOLD AND THE DOLLAR TEND TO MOVE INVERSELY IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 11155 YEN UP 016 AND AT 16100 MARKS UP 00035 MR MEYERS THE REDEL ANALYST SAID THAT THE NEW YORK MARKET WILL PROBABLY TAKE ITS CUE FROM THE CLOSE TODAY IN LONDON WHERE PROFITTAKING MAY EMERGE IN OTHER PRECIOUS METALS ACTIVITY SILVER SHOT UP 119 CENTS TO 4392 ON THE ACTIVE JULY CONTRACT PLATINUM FOR JULY DELIVERY JUMPED 350 TO 38550 WHILE PALLADIUM FOR JUNE DELIVERY SETTLED 225 HIGHER AT 12105 IN OTHER COMMODITY MARKETS GRAINS & SOYBEANS WHEAT PRICES ROSE IN THE WAKE OF A GOVERNMENT REPORT FORECASTING A SMALLERTHANEXPECTED US WINTER WHEAT HARVEST AFTER THE CLOSE OF TRADING TUESDAY THE AGRICULTURE DEPARTMENT PEGGED ITS FIRST ESTIMATE OF THE 1993 HARVEST AT 181 BILLION BUSHELS SOME GRAIN TRADERS HAD EXPECTED THE GOVERNMENT TO PREDICT A HARVEST OF MORE THAN 19 BILLION BUSHELS IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOFT RED WINTER WHEAT CONTRACT FOR MAY DELIVERY ROSE 925 CENTS A BUSHEL TO SETTLE AT 363 A BUSHEL CORN FUTURES PRICES ROSE AS SEVERAL METEOROLOGISTS INCREASED THE CHANCE FOR RAIN TO CONTINUE TO DELAY PLANTING IN THE MIDWEST SOME FARMERS WILL HAVE TO SHIFT TO QUICKER GROWING AND THUS LOWER YIELDINGVARIETIES IF THEY ARE UNABLE TO WORK IN THEIR FIELDS BY NEXT WEEK ENERGY PETROLEUM FUTURES PRICES TOOK A TUMBLE LATE IN YESTERDAY'S TRADING SESSION ON THE NEW YORK MERCANTILE EXCHANGE WITH ABOUT HALF THE DAY'S VOLUME COMING IN THE LAST HOUR OF TRADING TRADERS AND OTHER MARKET OBSERVERS COULD POINT TO NO NEWS REPORTS TO EXPLAIN THE SELLOFF AND ATTRIBUTED IT TO TECHNICAL FACTORS AND A BROAD BEARISH SENTIMENT JUNE CRUDE LOST 14 CENTS A BARREL TO FINISH AT 2020 GASOLINE FOR JUNE DELIVERY FELL 51 CENT A GALLON TO CLOSE AT 6063 CENTS HEATING OIL WAS HIT A BIT HARDER WITH THE JUNE CONTRACT DOWN 77 CENT AT THE CLOSE AT 5514 CENTS A GALLON THE MARKET SEEMED TO REACT VERY LITTLE TO A MIDMORNING REPORT THAT KUWAIT WILL SEEK A HIGHER PRODUCTION QUOTA AT NEXT MONTH'S MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES MEANWHILE NATURAL GAS FUTURES FOR JUNE CONTINUED THEIR TECHNICAL REBOUND FROM A RECENT SLIDE GAINING 58 CENTS TO CLOSE AT 2215 PER MILLION BRITISH THERMAL UNITS ROUGHLY EQUIVALENT TO A THOUSAND CUBIC FEET OF NATURAL GAS 9305130038 930513 LEISURE & ARTS FILM THE OLD WEST FROM A BLACK PERSPECTIVE BY JULIE SALAMON WITH POSSE MARIO VAN PEEBLES HAS MANAGED TO MAKE A SEMIPOLITICALLY CORRECT WESTERN WITHOUT WALLOWING IN THE NEW AGE PIETIES OF DANCES WITH WOLVES I SAY SEMI BECAUSE EVEN THOUGH MANY OF THE COWBOYS AND MOST OF THE HEROS ARE BLACK THE WOMEN BLACK AND WHITE ARE WHAT THEY'VE ALMOST ALWAYS BEEN IN MOVIE WESTERNS BAR GIRLS AND GIRLFRIENDS MR VAN PEEBLES HAS SAID HE DIDN'T WANT TO REINVENT THE WESTERN BUT TO INTEGRATE IT THE WAY THE OLD WEST WAS INTEGRATED IN REAL LIFE HE WASN'T TRYING TO BRING A CONTEMPORARY SENSIBILITY TO THE GENRE THE WAY KEVIN COSTNER DID IN DANCES WITH WOLVES NOR WAS HE OUT TO USE THE GENRE TO MAKE A MORAL POINT ABOUT MOVIE VIOLENCE THE WAY CLINT EASTWOOD DID LAST YEAR WITH UNFORGIVEN CLEVERLY WREAKING GREAT VIOLENCE ONSCREEN IN THE NAME OF ANTIVIOLENCE HE CERTAINLY WASN'T MAKING A SPOOF LIKE BLAZING SADDLES IN WHICH CLEAVON LITTLE PLAYED A HIP BLACK SHERIFF MR VAN PEEBLES HAS EMPHASIZED THAT HE WANTED ONLY TO MAKE A WESTERN ALBEIT ONE HE HAS DESCRIBED AS A HISTORICALLY ACCURATE MOVIE THAT RECALLED THE MULTICULTURAL NATURE OF THE OLD WEST HE HAS DONE JUST THAT LUCKILY WHEN MR VAN PEEBLES IS MAKING MOVIES NOT PROMOTING THEM HE REFRAINS FROM PEDANTIC LANGUAGE NOT ONCE DOES ANYONE IN POSSE USE THE WORD MULTICULTURAL POSSE HAS THE BEAUTY AND THE ENERGY OF A GOOD WESTERN AS WELL AS A TRADITIONAL COWBOY PICTURE'S OLD TESTAMENT VALUES AN EYE FOR AN EYE INDEED THE ONLY SOP TO CONTEMPORARY TASTE OR LACK THEREOF IS A STANDARDISSUE HOLLYWOOD SEX SCENE EVEN THE CLICHES THE DUSTY TOWNS THE CLOSEUPS OF HOOFS AND TRAIN WHEELS AND WEATHERBEATEN FACES THE JOKEY CAMARADERIE ARE WELL DONE MR VAN PEEBLES WHOSE FEATURE DIRECTING DEBUT WAS THE POPULAR URBAN ACTION FILM NEW JACK CITY HAS WATCHED AND LEARNED FROM SERGIO LEONE AND SAM PECKINPAH AND THE OLD MASTERS JOHN FORD AND HOWARD HAWKS STILL BY MAKING HIS HEROES BLACK WITH A TOKEN WHITE AMONG THEM MR VAN PEEBLES HAS IN FACT REINVENTED THE FORM WHAT MAKES THE PICTURE INTERESTING AS WELL AS ENTERTAINING SOMETHING NEW AND NOT JUST ANOTHER WESTERN IS ITS BLACK PERSPECTIVE HERE THE USUAL HARDNESS AND DEVIOUSNESS OF FRONTIER LIFE IS HEIGHTENED BY RACISM THE MOVIE'S BLACK SETTLERS HAVE TO COPE NOT ONLY WITH UNSCRUPULOUS LAND DEVELOPERS AND OTHER RUNOFTHEMILL RAPSCALLIONS THEY HAVE TO FIGHT OFF THE KU KLUX KLAN AND THE PICTURE'S EMOTIONAL PULSE ISN'T CLASSICALLY WESTERN AT LEAST PARTLY BECAUSE THE MUSIC DEPARTS SIGNIFICANTLY FROM THE COUNTLESS FILM SCORES COMPOSED BY AARON COPLAND OR INSPIRED BY HIS MUSIC INCLUDING BILLY THE KID AND RODEO POSSE MARCHES TO ITS OWN BEAT WITH A SCORE INFLUENCED BY JAZZ AND PUNCTUATED BY GOSPEL MUSIC AND THE SEXY SONGS BELTED OUT BY THE POPULAR BLUES PERFORMER VESTA WHO PLAYS A SALOON SINGER THE SCRIPT BY SY RICHARDSON AND DARIO SCARDAPANE USES FAMILIAR ARCHETYPES FOR THIS STORY OF A RENEGADE POSSE COMPOSED OF VIRTUOUS OUTLAWS THE PINTSIZED BRAINY COWBOY THE SMOOTH GAMBLER THE DIMWITTED BUT NOBLE HULK AND SO ON HOWEVER THE GOODHEARTED MINORITY PERSON HERE IS THE WHITE GUY PLAYED AFFABLY BY STEPHEN BALDWIN BROTHER OF ALEC AND WILLIAM THE CASTING IS GENERALLY GOOD I ESPECIALLY LIKE BIG DADDY KANE AS THE GAMBLER CALLED FATHER TIME ONLY THE DELICATE BILLY ZANE SEEMS OUT OF PLACE AS THE EVIL ARMY COLONEL CHASING THE POSSE HE LOOKS LIKE HE SHOULD BE WEARING DOCKSIDERS NOT COWBOY BOOTS RAYBANS INSTEAD OF AN EYE PATCH MR VAN PEEBLES HIMSELF PLAYS THE HAUNTED HERO THE MAN WITH A PAST IN NEED OF VENGEANCE HE'S A BABYFACED TOUGH GUY IN THE STEVE MCQUEEN MOLD THOUGH HE COULD USE A FEW MORE LINES TO TOUGHEN UP HIS PRETTY FACE STILL HE BROODS NICELY THE WAY A WESTERN HERO SHOULD THE FILM'S MOST POIGNANT MOMENTS COME AT THE BEGINNING AND THE END WITH WOODY STRODE AS THE OLD MAN TELLING THE STORY THERE HE IS THE PROFESSIONAL WRESTLER TURNED ACTOR ELEGANT AND GAUNT A BLACK LEGEND RECALLING A BLACK LEGEND HE BEGAN HIS FILM CAREER IN 1941 PLAYING AN AFRICAN TRIBESMAN IN SUNDOWN THEN WENT ON TO PLAY IN MORE THAN 100 FILMS INCLUDING MANY WESTERNS IN WHICH HE WASN'T THE LEADING MAN HE ISN'T IN THIS ONE EITHER BUT HE MAY BE ITS HEART BOTH BILL CLINTON AND ROSS PEROT HAVE REPORTEDLY GIVEN A THUMBSUP TO DAVE THE NEW COMEDY ABOUT A REGULAR GUY WHO GETS TO PRETEND TO BE PRESIDENT MAYBE MOVIE REVIEWING IS WHERE THEIR REAL FUTURE LIES I CAN SEE IT NOW FIVE MINUTES EVERY WEEKNIGHT ON FOX FLICK OUT WITH ROSS AND BILL THEY BOTH PROBABLY IDENTIFY WITH THIS STORY OF THE OUTSIDER WHO SHOWS THOSE CORRUPT BELTWAY POLS HOW COMMON SENSE AND A DECENT HEART MAKE GOOD GOVERNMENT DAVE AFTER ALL ONLY DEALS WITH HEARTWARMING ISSUES LIKE HOUSING HOMELESS CHILDREN NOT THAT BORING DETAILED STUFF LIKE THE ECONOMY AND THE BALKANS AND HE'S SO NICE HE MAKES THE FIRST LADY WISH SHE DIDN'T HAVE HER OWN BEDROOM POLITICALLY DAVE IS SILLY AND SENTIMENTAL BUT THAT DOESN'T DIMINISH THE CREDIBILITY OF PRESIDENT CLINTON AND MR PEROT AS MOVIE CRITICS ASTUTE SHOWMEN IN THEIR SEPARATE WAYS THEY RECOGNIZE DAVE FOR WHAT IT IS A VERY GOOD SHOW DIRECTOR IVAN REITMAN GHOSTBUSTERS STRIPES KINDERGARTEN COP AND SCREENWRITER GARY ROSS BIG KNOW HOW TO PLEASE AN AUDIENCE AND THEY DO KEVIN KLINE AND SIGOURNEY WEAVER AS THE FIRST COUPLE ARE JUST DANDY VIDEO TIP WOODY STRODE SPENT MUCH OF HIS MOVIE CAREER IN HOLLYWOOD AS DECORATION SHOWING OFF HIS RANGY ATHLETE'S BODY REMEMBER HIM AS THE VALIANT GLADIATOR IN SPARTACUS BUT HE WAS ALWAYS A STRONG PRESENCE ESPECIALLY IN THE NUMEROUS JOHN FORD FILMS IN WHICH HE PLAYED HIS CAREER TOOK A BIG LEAP FORWARD IN 1960 WHEN FORD PUT HIM IN SERGEANT RUTLEDGE IN THE ROLE OF A BLACK SOLDIER ON TRIAL FOR MURDER AND RAPE 9305130037 930513 BUSINESS BRIEF HOSPITALITY FRANCHISE SYSTEMS INC TRANSACTIONS ARE COMPLETED TO CONVERT HOTEL PORTFOLIO HOSPITALITY FRANCHISE SYSTEMS INC PARSIPPANY NJ SAID TWO TRANSACTIONS WERE COMPLETED THAT ARE AIMED AT CONVERTING TO ITS OWN BRANDS A 10000ROOM HOTEL PORTFOLIO SOLD BY THE FEDERAL THRIFT BAILOUT AGENCY THE PORTFOLIO OF HOTELS AND MORTGAGES SECURED BY HOTELS WAS ACQUIRED YESTERDAY BY CHARTWELL HOTEL ASSOCIATES OF NEW YORK FROM THE RESOLUTION TRUST CORP WHICH SEIZED THE PORTFOLIO FROM FAILED HOME FEDERAL SAVINGS ASSOCIATION OF KANSAS CITY CHARTWELL IS OWNED BY A DALLAS INVESTMENT PARTNERSHIP AFFILIATED WITH GORDON P GETTY AND THE FISHER FAMILY A LONGTIME FORCE IN MANHATTAN REAL ESTATE IN A SECOND TRANSACTION HOSPITALITY FRANCHISE A LODGING FRANCHISER THAT HAD ITS INITIAL PUBLIC OFFERING IN DECEMBER SAID IT ADVANCED 4 MILLION TO HELP CONVERT HOTELS IN THE PORTFOLIO TO ANY ONE OF ITS FOUR BRANDS DAYS INN HOWARD JOHNSON RAMADA AND SUPER 8 HOTELS 9305130036 930513 TECHNOLOGY BRIEF APPLE COMPUTER INC SYMANTEC TO ASSIST COMPANY IN DEVELOPING SOFTWARE CODE APPLE COMPUTER INC AND SYMANTEC CORP SAID THEY WILL WORK TOGETHER TO DEVELOP A SOFTWARE CODE THAT WOULD MAKE IT EASIER FOR SOFTWARE DEVELOPERS TO CREATE PRODUCTS FOR APPLE COMPUTERS THE AGREEMENT TARGETS SOFTWARE FOR APPLE'S PLANNED POWERPC COMPUTERS WHICH WILL USE COMPUTER CHIPS DEVELOPED THROUGH AN ALLIANCE BETWEEN APPLE INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC THE AGREEMENT EXPANDS A YEAROLD ALLIANCE BETWEEN APPLE AND SYMANTEC TO DEVELOP A SOFTWARE CODE CALLED BEDROCK WHICH ALLOWS SOFTWARE DEVELOPERS TO MORE EASILY CREATE APPLICATIONS PRODUCTS FOR BOTH APPLE'S MACINTOSH COMPUTERS AND PCS USING MICROSOFT CORP'S WINDOWS SOFTWARE THROUGH SUCH EFFORTS APPLE HOPES TO ENTICE SOFTWARE DEVELOPERS TO CREATE PRODUCTS FOR ITS COMPUTERS DESPITE HAVING A MARKET SMALLER THAN THAT OF MICROSOFT BOTH APPLE AND SYMANTEC ARE BASED IN CUPERTINO CALIF 9305130035 930513 INTERNATIONAL BRIEF BODY SHOP INTERNATIONAL PLC PRETAX PROFIT DECLINES 15 RETAILSALES SLUMP IS BLAMED BODY SHOP INTERNATIONAL PLC SAID THAT PRETAX PROFIT FOR THE 12 MONTHS ENDED FEB 28 FELL 15 TO 215 MILLION 331 MILLION FROM 252 MILLION A YEAR EARLIER THE SLIDE WAS BROADLY IN LINE WITH ANALYSTS' FORECASTS BUT A 6 INCREASE IN THE DIVIDEND TO 17 PENCE 26 CENTS A SHARE FROM 16 PENCE WAS LARGELY UNEXPECTED CHAIRMAN GORDON RODDICK BLAMED THE RECESSION AND THE SLUMP IN UNITED KINGDOM RETAIL SALES FOR THE DECLINE HOWEVER REVENUE IN THE UK WAS UP 1 AND SALES GREW 14 TO 1683 MILLION FROM 1474 MILLION THE LONDON COMPANY WHICH MARKETS HAIRCARE AND SKINCARE PRODUCTS SAID IT PLANS TO OPEN 150 RETAIL OUTLETS WORLDWIDE IN 1993 LAST YEAR IT OPENED 173 NEW OUTLETS THE US MARKET WILL CONTINUE TO BE IMPORTANT TO BODY SHOP'S OVERALL PERFORMANCE MR RODDICK SAID WE HAVE BEGUN TO BE MORE AGGRESSIVE IN OUR PROMOTIONS IN THE STATES MR RODDICK EXPLAINED ADDING THAT A JOINT ADVERTISING CAMPAIGN WITH AMERICAN EXPRESS CO HAS BEEN SUCCESSFUL AND IS DUE TO BE SCREENED IN EUROPE IN THE FALL 9305130034 930513 INTERNATIONAL BRIEF KLOECKNERWERKE AG GERMAN FIRM EXPECTS LOSS FOR STEEL OPERATIONS IN YEAR THE STEEL DIVISION OF GERMANY'S KLOECKNERWERKE AG IS EXPECTED TO POST A LOSS OF MORE THAN 200 MILLION MARKS 1244 MILLION FOR THE CURRENT FISCAL YEAR SAID CHAIRMAN HANS CHRISTOPH VON ROHR IN MARCH KLOECKNER REPORTED THAT ITS STEEL OPERATIONS HAD A LOSS OF MORE THAN 100 MILLION MARKS IN THE FIRST THREE MONTHS OF THE YEAR THAT BEGAN OCT 1 AT THAT TIME MR VON ROHR ALSO SAID THE STEEL OPERATIONS WOULD BREAK EVEN IN FISCAL 1994 IN A TELEVISION INTERVIEW MR VON ROHR SAID KLOECKNERWERKE'S ENGINEERING AND PLASTICS DIVISIONS WILL ALSO POST NEGATIVE RESULTS FOR THE YEAR BUT WILL BECOME PROFITABLE IN THE NEXT FISCAL YEAR MEANTIME THE EUROPEAN COMMUNITY COMMISSION POSTPONED A DECISION ON A DEBT RESTRUCTURING PLAN FOR KLOECKNER COMMISSIONERS SAID THEY NEED MORE TIME TO EXAMINE THE PLANS SUBMITTED MONDAY A SPOKESMAN SAID A DECISION SHOULD BE MADE WITHIN DAYS HE ADDED AS PART OF THE RESTRUCTURING PLAN MR VON ROHR SAID THE COMPANY AIMS TO CUT RAW STEEL CAPACITY ABOUT 20 9305130033 930513 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN A EUROPEAN COMMUNITY STUDY PREDICTS THE NORTH AMERICAN FREE TRADE AGREEMENT WILL POSE SOME PROBLEMS FOR EC COMPANIES BUT HAVE A POSITIVE EFFECT OVERALL PRINCIPALLY ENHANCED EUROPEAN POLITICAL AND ECONOMIC TIES WITH MEXICO UNDER NAFTA WHICH WILL TAKE EFFECT IN JANUARY 1994 IF IT IS RATIFIED BY THE US MEXICO AND CANADA MEXICO WILL BECOME A VERY IMPORTANT POLE FOR INVESTMENT BY THIRD COUNTRIES THE REPORT STATES AND THE TREATY WILL PROVIDE IMPORTANT SECURITY FOR INVESTORS DEALING IN MEXICO THE REPORT SEES LITTLE SHORTTERM EFFECT ON EC POLITICAL AND TRADE RELATIONS WITH THE US AND CANADA BUT IT SAYS EC EXPORTERS COULD ENCOUNTER SOME LONGTERM PROBLEMS BECAUSE OF ENHANCED COMPETITION FROM MEXICAN EXPORTS TO THE US AND CANADA POTENTIAL PITFALLS CITED FOR THE EC INCLUDE DISCRIMINATION IN THE SERVICES SECTOR AND PREFERENCE FOR INVESTORS IN NORTH AMERICA THE REPORT SAYS THE EC SHOULD TRY TO MINIMIZE SOME PROBLEMS SUCH AS BY SEEKING TO NEGOTIATE LOWER TARIFFS GLOBAL POPULATION IS EXPANDING BY ABOUT 90 MILLION PEOPLE A YEAR AND WILL EXCEED 55 BILLION THIS YEAR THE POPULATION REFERENCE BUREAU SAID IN WASHINGTON THE PRIVATE GROUP SAID DEVELOPING COUNTRIES ACCOUNT FOR ALMOST ALL THE GROWTH THE GLOBAL GROWTH LEADER IS AFRICA WHERE WOMEN BEAR AN AVERAGE OF SIX CHILDREN COMPARED WITH 16 IN EUROPE AND 2 IN THE US AMONG WEALTHY NATIONS THE US IS THE POPULATION GROWTH PACESETTER PAY RAISES THIS YEAR AT MAJOR JAPANESE COMPANIES HIT BY AN ECONOMIC SLUMP AVERAGED 386 THE SMALLEST SINCE 1987 AN EMPLOYER GROUP SAID RAISES IN APRIL BROUGHT AVERAGE MONTHLY WAGES AT 317 FIRMS WITH 25 MILLION WORKERS 55 OF THE LABOR FORCE OF 45 MILLION TO 2500 EXCLUDING TWICEAYEAR BONUSES AND OVERTIME SEPARATELY JAPAN SAID ITS REGIONAL ECONOMIES HAVE BECOME MORE RESILIENT AND ARE LIKELY TO RECOVER SIMULTANEOUSLY WITH OR AHEAD OF THOSE IN METROPOLITAN AREAS A REVERSAL FROM PREVIOUS REBOUNDS MORE THAN 90 OF PRIVATE CORPORATIONS IN CHINA AND 50 TO 60 OF STATERUN ENTERPRISES EVADE TAXES THE CHINA INFORMATION NEWSPAPER SAID THE RAMPANT PRACTICE COSTS THE GOVERNMENT ABOUT 50 BILLION YUAN 874 BILLION A YEAR AT STATE FIRMS THE PAPER SAID PUBLIC FUNDS INCLUDING SUBSIDIES AND LOANS ARE DEPOSITED SO THAT INDIVIDUALS KEEP THE INTEREST IN COLLUSION WITH LOCAL GOVERNMENT OFFICIALS AND FINANCIAL INSTITUTIONS IT SAID SUCH DEPOSITS EXCEED 100 BILLION YUAN THAT GENERATE INTEREST OF 3 BILLION YUAN A YEAR INVESTMENTS BY FOREIGNERS IN SOUTH KOREA CONTINUED TO FALL WITH A FIRSTQUARTER DECLINE OF LESS THAN 1 TO 310 MILLION WHILE THE NUMBER OF PROJECTS MORE THAN TRIPLED TO 60 FROM 17 THE MANUFACTURING SECTOR WAS HIT HARDEST PLUNGING 12 TO 206 MILLION WITH PROJECTS SLUMPING 42 TO 19 BECAUSE OF STEADILY RISING WAGES DEALS IN THE SERVICE SECTOR WERE UNCHANGED BUT THEIR VALUE CLIMBED 33 ON GROWTH IN THE TRADING BUSINESS SINCE 1987 WHEN FOREIGN INVESTMENT DEALS PEAKED AT 372 PROJECTS DWINDLED STEADILY TO 237 LAST YEAR BECAUSE OF SURGING PAY AND BITTER RELATIONS BETWEEN LABOR AND MANAGEMENT SPAIN'S CONSERVATIVE OPPOSITION PARTY PARTIDO POPULAR UNVEILED A PROGRAM TO SPUR ECONOMIC GROWTH WITHOUT UPSETTING THE STABILITY OF THE PESETA CURRENCY THE RULING SOCIALISTS HAVE COME UNDER FIRE FOR HEAVY DEPENDENCE ON TIGHT MONEY POLICIES TO FIGHT PRICE INCREASES HIGH PUBLIC SPENDING HAS PROMPTED HIGHER INTEREST RATES CHOKING INVESTMENT AND EONOMIC GROWTH PARTIDO POPULAR PORTRAYS ITSELF AS MARKETORIENTED YET CONCERNED WITH SOCIAL ISSUES AND JOB CREATION JOSE MARIA AZNAR THE PARTY'S CANDIDATE FOR PRIME MINISTER IN THE JUNE 6 GENERAL ELECTION PROMISED A BALANCED MIX OF FISCAL AND MONETARY POLICIES WITH SPENDING RESTRICTIONS TO IMPROVE EFFICIENCY AND BOOST INVESTMENT SPEEDIER PRIVATIZATIONS AND LOWER TAXES THE PARTY AIMS TO ALLOW LOWER INTEREST RATES BY REINING IN THE HUGE BUDGET DEFICIT WITHOUT CUTTING SOCIAL SPENDING A LOFTY GOAL MR AZNAR SAID HE FAVORED CUTTING RATES RATHER THAN BOLSTERING THE PESETA TO STIMULATE GROWTH BUT INTENDED TO KEEP THE CURRENCY IN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM THE US AGREED IN GENEVA TO A EUROPEAN COMMUNITY DEMAND FOR A GLOBAL TRADEBODY ARBITRATION PANEL TO REVIEW US LUXURY TAXES THAT THE EC CLAIMS DISCRIMINATE AGAINST HIGHPRICED EUROPEAN CARS CHINA IS DRAFTING REGULATIONS TO ATTRACT MUCHNEEDED FOREIGN INVESTMENT IN THE COUNTRY'S SLUGGISH MINING INDUSTRY 9305130032 930513 BUSINESS BRIEF ALLIEDSIGNAL INC COMPANY AGREES TO PAYMENT TO PLUG ABANDONED WELLS NEW YORK STATE SAID ALLIEDSIGNAL INC WILL SPEND 55 MILLION UNDER A CONSENT ORDER TO PLUG 135 ABANDONED SALT WELLS IN TULLY VALLEY NEAR SYRACUSE NY THE CONSTRUCTION WORK IS EXPECTED TO TAKE 3 1/2 YEARS ALLIEDSIGNAL MORRIS TOWNSHIP NJ ALSO WILL PAY 201900 INTO A STATE FUND FOR PLUGGING SOCALLED ORPHAN WELLS A STATE OFFICIAL SAID PLUGGING THE WELLS WILL SIGNIFICANTLY REDUCE THE LIKELIHOOD OF FURTHER GROUND COLLAPSES IN THE REGION ALLIEDSIGNAL A TECHNOLOGY COMPANY WITH AEROSPACE AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS INTERESTS SHUT DOWN ITS TULLY VALLEY OPERATION IN 1986 ALLIEDSIGNAL AND A PREDECESSOR COMPANY PUMPED WATER INTO WELLS AND EXTRACTED SALT TO SUPPLY A CHEMICAL PLANT 9305130031 930513 TECHNOLOGY BRIEF AMERICA ONLINE INC PAUL ALLEN MEETS OFFICIALS TO DISCUSS MULTIMEDIA PLANS SOFTWARE MOGUL PAUL ALLEN MET TUESDAY WITH OFFICIALS FROM AMERICA ONLINE INC THE ONLINE INFORMATION SERVICES COMPANY HE HAS SAID HE MAY ACQUIRE IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR ALLEN SAID HE DISCUSSED A POSSIBLE BUSINESS RELATIONSHIP BETWEEN HIS VARIOUS COMPANIES AND AMERICA ONLINE OF VIENNA VA MR ALLEN IS A COFOUNDER AND MAJOR SHAREHOLDER OF MICROSOFT CORP BESIDES OWNING ALMOST 25 OF AMERICA ONLINE THE BILLIONAIRE ALSO IS CHAIRMAN OF ASYMETRIX CORP A SMALLER SOFTWARE CONCERN AND OWNS OTHER COMPANIES THAT ARE DEVELOPING NEW WAYS TO PRESENT AND MANIPULATE INFORMATION USING COMPUTERS HIS TALKS WITH AMERICA ONLINE FOCUSED ON SOFTWARE THAT WOULD HELP DELIVER MULTIMEDIA INFORMATION AUDIO AND VIDEO DATA THAT CAN BE HANDLED BY COMPUTERS ACROSS FARFLUNG NETWORKS ACCORDING TO THE SEC FILING NO AGREEMENTS WERE REACHED BUT THE FILING SAID MR ALLEN AND AMERICA ONLINE AGREED TO MEET AGAIN SOON FOR MORE TALKS FURTHER DETAILS COULDN'T BE LEARNED 9305130030 930513 CHEVRON BOOSTS RESERVES FROM OIL FIELD IN KAZAKHSTAN WARNS OF SLOWER OUTPUT BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CHEVRON CORP SAID IT OFFICIALLY PLACED ON ITS BOOKS 11 BILLION BARRELS OF CRUDE OIL AND 15 TRILLION CUBIC FEET OF NATURAL GAS RESERVES FROM THE VAST TENGIZ OIL FIELD IN KAZAKHSTAN BUT ADDED THAT PRODUCTION FROM THE JOINT VENTURE WILL GROW MORE SLOWLY THAN PREVIOUSLY EXPECTED THE DISCLOSURE OF ABOUT A ONETHIRD JUMP IN THE COMPANY'S WORLDWIDE RESERVES WAS MADE IN A MEETING WITH FINANCIAL ANALYSTS AND SENT CHEVRON'S STOCK UP 1625 TO 88 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING A 52WEEK HIGH ANALYSTS SAID CHEVRON'S BOOKING OF OIL RESERVES WAS IN KEEPING WITH PAST ESTIMATES BUT THAT THE ADDITIONAL RECOGNITION OF 15 TRILLION CUBIC FEET OF NATURAL GAS WAS A SURPRISE WHOSE ECONOMIC VALUE IS UNCERTAIN BECAUSE NO PIPELINE CONNECTIONS EXIST TO EXPORT THE COMMODITY KAZAKHSTAN IS A FORMER SOVIET REPUBLIC OVERALL SAN FRANCISCOBASED CHEVRON'S DISCLOSURES GIVE THE TENGIZ STORY MUCH MORE CREDIBILITY IN INVESTORS' EYES SAID MICHAEL YOUNG ANALYST AT SMITH BARNEY HARRIS UPHAM & CO THE RESERVES ANNOUNCED YESTERDAY ARE ONLY A SMALL PART OF THE ESTIMATED 25 BILLION BARRELS OF OIL IN THE GROUND AT TENGIZ THEY ARE BASED ON WHAT CHEVRON BELIEVES TO BE ECONOMICALLY RECOVERABLE UNDER FORESEEABLE CONDITIONS AND ON ITS 50 STAKE IN THE FIELD CHEVRON AND ITS PARTNER THE REPUBLIC OF KAZAKHSTAN PLAN TO INVEST SOME 15 BILLION OVER THE NEXT THREE TO FIVE YEARS AND ARE EXPECTED TO INVEST SOME 20 BILLION OVER THE NEXT 40 YEARS CHEVRON SAID IT EXPECTS TO BOOST ITS BOOKED RESERVES IN COMING YEARS AS THE FIELD IS FURTHER DEVELOPED TO BETWEEN THREE BILLION AND 45 BILLION BARRELS OR HALF OF THE TOTAL SIX BILLION TO NINE BILLION BARRELS BELIEVED ECONOMICALLY RECOVERABLE FOR CHEVRON WHOSE WORLDWIDE DEVELOPED RESERVES OF OIL AND NATURAL GAS HAVE BEEN DWINDLING IN RECENT YEARS AS PRODUCTION EXCEEDED DISCOVERIES SUCH A BOOST IS IMPORTANT YOU'RE LOOKING AT SEVERAL YEARS OF IMPRESSIVE ADDITIONS TO RESERVES SAID PAUL B TING ANALYST AT OPPENHEIMER & CO INITIALLY HOWEVER TENGIZ OFFERS LIMITED PROFITS FOR CHEVRON MR YOUNG ESTIMATES THAT THE VENTURE MAY ACCOUNT FOR BETWEEN FIVE CENTS AND 10 CENTS A SHARE OF HIS PROJECTED 565ASHARE EARNINGS FOR CHEVRON THIS YEAR MR YOUNG SEES THE CONTRIBUTION CLIMBING TO BETWEEN 15 CENTS AND 20 CENTS A SHARE IN 1994 AND TO BETWEEN 30 CENTS AND 40 CENTS A SHARE IN 1995 BUT NOTES THAT THIS IS BASED ON IMPERFECT INFORMATION INDEED CHEVRON ITSELF HAS FOUND THAT ALL IS NOT AS IT SEEMS AT TENGIZ WHICH WAS ONE OF THE WORLD'S LARGEST OIL DISCOVERIES OVER THE PAST TWO DECADES COMPANY OFFICIALS SAID YESTERDAY THAT THEY EXPECT THE FIELD'S CURRENT PRODUCTION RATE OF 65000 BARRELS A DAY TO DOUBLE TO 130000 BARRELS A DAY BY THE END OF 1995 ABOUT A YEAR LATER THAN EXPECTED PRODUCTION IS EXPECTED TO QUADRUPLE TO ABOUT 260000 BARRELS A DAY BY 1997 SOMEWHAT LATER THAN PREVIOUSLY PROJECTED ONCE YOU'RE IN A JOINT VENTURE YOU SEE A LOT BETTER WHAT NEEDS TO BE DONE IT'S THE NATURE OF THE PROCESS SAID A COMPANY SPOKESMAN OF THE SLOWER DEVELOPMENT RICHARD MATZKE PRESIDENT OF CHEVRON'S CHEVRON OVERSEAS PETROLEUM INC UNIT SAID THE 15 TRILLION CUBIC FEET OF NATURAL GAS BOOKED FOR TENGIZ HAS BEEN ADJUSTED FOR THE COMPANY'S ASSUMPTION THAT THE GAS CAN'T BE EXPORTED FOR SOME TIME LIKELY NOT UNTIL 1997 OR LATER THERE'S LOTS OF GAS THERE SAID MR MATZKE HOW IT GETS MARKETED IS A BIT OF A QUESTION CHEVRON HAS SAID IT PLANS TO BUILD PIPELINES FOR OIL AND GAS AT TENGIZ TO CONNECT WITH WESTERN MARKETS OIL FROM THE FIELD CURRENTLY IS USED IN THE FORMER SOVIET UNION CHEVRON IN TURN RECEIVES ROUGHLY COMPARABLE OIL AT EXPORT LOCATIONS 9305130029 930513 WHAT'S NEWS BUSINESS AND FINANCE PRODUCER PRICES SHOT UP 06 LAST MONTH THE MOST IN 2 1/2 YEARS RAISING INFLATION CONCERNS MUCH OF THE GAIN CAME FROM A WEATHERRELATED 45 JUMP IN VEGETABLE PRICES BUT EVEN EXCLUDING THE FOOD AND ENERGY SECTORS PRODUCER PRICES WERE UP 04 THE BIGGEST INCREASE IN NEARLY A YEAR BOND PRICES TUMBLED ON THE REPORT THE DOW JONES INDUSTRIALS JUMPED 1356 POINTS TO A RECORD 348231 DESPITE RISING INTEREST RATES BUT STOCKS OVERALL WERE MIXED THE DOLLAR ROSE A GENERAL ELECTRIC UNIT AGREED TO BUY 135 BILLION IN PLANES FROM GPA GE WOULD ALSO GET AN OPTION TO BUY UP TO 80 OF GPA'S EQUITY BY 1997 THE AGREEMENT WOULD KEEP THE JETLEASING CONCERN OUT OF BANKRUPTCY COURT BUT IT DEPENDS ON GPA'S RAISING 150 MILLION FROM SHAREHOLDERS AND LENDERS HOUSE DEMOCRATIC TAX WRITERS TENTATIVELY AGREED TO PARTIALLY EXEMPT FARMERS AND THE ALUMINUM INDUSTRY FROM CLINTON'S PROPOSED ENERGY TAX AND TO RAISE THE TAX RATE ON OTHERS CLINTON PLEDGED TO USE ANY NEW TAX REVENUE AND SAVINGS FROM CUTS IN ENTITLEMENT PROGRAMS TO REDUCE THE DEFICIT AND NOT TO FINANCE NEW SPENDING KODAK'S SHAREHOLDERS ELECTED THE SLATE OF DIRECTORS NOMINATED BY MANAGEMENT BUT SENT A WARNING BY NEARLY APPROVING A PROPOSAL TO BRING THE ENTIRE BOARD UP FOR ELECTION EVERY YEAR KODAK'S STOCK ROSE 1625 TO 53 USAIR CUT FARES AIMED AT VACATIONERS BY AN AVERAGE OF 28 ON NORTHEASTERN ROUTES OF LESS THAN 750 MILES THE CARRIER SAID THE MOVE ISN'T A SALE BUT IS A RESTRUCTURING OF FARES TO LURE TRAVELERS FROM CARS BUSES AND TRAINS FIVE MAJOR RETAILERS REPORTED MIXED RESULTS FOR THE LATEST QUARTER HURT IN SOME CASES BY BAD WEATHER AS WELL AS WEAK CONSUMER CONFIDENCE PROFIT CLIMBED AT FEDERATED AND WALMART AND FELL SHARPLY AT WOOLWORTH IBM IS OFFERING SENIOR MANAGERS BUT NOT ITS TOPMOST EXECUTIVES THE CHANCE TO EXCHANGE THEIR STOCK OPTIONS FOR A SMALLER NUMBER OF NEW ONES THAT CAN BE EXERCISED AT A LOWER PRICE EMPLOYEES WOULD HAVE TO STAY AT IBM FOUR YEARS TO EXERCISE ALL THE NEW OPTIONS AN INVESTMENT BANK CAN'T ADVISE A COMPANY IN BANKRUPTCYLAW PROCEEDINGS IF THEY ALREADY HAVE A BUSINESS RELATIONSHIP AN APPEALS COURT RULED IN A CASE INVOLVING GOLDMAN SACHS GERMANY'S CENTRAL BANK LOWERED AN INTEREST RATE SETTING THE STAGE FOR A POSSIBLE CUT NEXT WEEK IN THE NATION'S KEY DISCOUNT AND LOMBARD RATES TIME WARNER PLANS TO RELEASE A SERIES OF MOVIES VIDEOS AND RECORDS UNDER A NEW FAMILYORIENTED LABEL PRUDENTIAL SECURITIES' OIL AND GAS PARTNERSHIPS APPEAR TO BE THE SUBJECT OF A BIDDING WAR AFTER THE FIRM ANNOUNCED AN AGREEMENT TO SELL THEM CABLE TV PHONE AND COMPUTER COMPANIES LAUNCHED A PROJECT TO HELP SPEED DEVELOPMENT OF AN ADVANCED INFORMATION NETWORK THAT ULTIMATELY COULD LINK EVERY HOME IN THE US PHILIPS ELECTRONICS AND MATSUSHITA ELECTRIC UNVEILED PLANS TO SELL PORTABLE MODELS OF THEIR DIGITAL COMPACT CASSETTE PLAYER STARTING NEXT MONTH CHEVRON REPORTED A ONETHIRD JUMP IN ITS OIL AND GAS RESERVES REFLECTING THE ADDITION OF CRUDE OIL AND NATURAL GAS IN KAZAKHSTAN'S TENGIZ FIELD CHEVRON'S STOCK JUMPED 1625 TO 88 CONTINENTAL AIRLINES ORDERED 92 BOEING JETS FOR 45 BILLION A GENERAL ELECTRIC UNIT SAID THE CARRIER ALSO ORDERED UP TO 15 BILLION OF ENGINES TOKYO STOCKS SANK 16 WEDNESDAY AS INVESTORS TOOK PROFITS THE NIKKEI INDEX SLID 32517 POINTS TO 2061520 LONDON AND FRANKFURT SHARES SURGED STOCKS VOLUME 254543240 SHARES DOW JONES INDUSTRIALS 348231 UP 1356 TRANSPORTATION 158941 UP 1893 UTILITIES 23998 UNCHANGED BONDS LEHMAN BROTHERS TREASURY INDEX 510952 OFF 2410 COMMODITIES OIL 2020 A BARREL OFF 14 CENTS DOW JONES FUTURES INDEX 12163 UP 096 SPOT INDEX 11999 UP 025 DOLLAR 11155 YEN UP 016 16100 MARKS UP 00035 9305130028 930513 GUILTY PLEA ENTERED IN AID DIVERSION CASE THAT INVOLVED GE WASHINGTON A NEW JERSEY BUSINESSMAN PLEADED GUILTY TO THE WIDESPREAD DIVERSION OF US MILITARY AID TO ISRAEL IN A CONTINUING INQUIRY THAT INVOLVED A PREVIOUS GUILTY PLEA BY GENERAL ELECTRIC CO GARY KLEIN 58 YEARS OLD OF MATAWAN NJ ENTERED HIS PLEA IN FEDERAL COURT IN CINCINNATI TO MONEY LAUNDERING AND WIRE FRAUD CHARGES ACCORDING TO THE JUSTICE DEPARTMENT HE USED THE GSK CONSULTING FIRM HE OPERATED FROM HIS HOME TO DIVERT 7425000 TO EUROPEAN BANK ACCOUNTS AN UNIDENTIFIED OFFICIAL WITH GENERAL ELECTRIC'S AIRCRAFT ENGINE BUSINESS GROUP PAID GSK THE FUNDS FOR A FLIGHT TEST PROGRAM FOR F16 JET AIRCRAFT ENGINES SOLD TO ISRAEL BY GE WHICH IS BASED IN FAIRFIELD CONN THE DIVERTED FUNDS WERE PLACED IN THE BANK ACCOUNTS FOR THE PERSONAL USE OF A FORMER ISRAELI AIR FORCE GENERAL AND THE GEAE OFFICIAL WHO IS IDENTIFIED ONLY AS THE FORMER MANAGER OF THE COMPANY'S INTERNATIONAL GOVERNMENT SALES MR KLEIN KEPT 150000 AS HIS CUT ACCORDING TO THE DEPARTMENT THE EXGENERAL RAMI DOTAN WAS IMPRISONED IN ISRAEL IN 1991 FOR SKIMMING MILLIONS OF DOLLARS IN US MILITARY AID GE PLEADED GUILTY TO DIVERTING 265 MILLION FROM THE MILITARY AID PROGRAM AND PAID 69 MILLION IN FINES 9305130027 930513 PRUDENTIAL GOT UNDISCLOSED BID FOR OIL ASSETS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SURPRISE BIDDING WAR APPEARS TO HAVE ERUPTED FOR PRUDENTIAL SECURITIES INC'S TROUBLED 35 ENERGYINCOME PARTNERSHIPS THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT ON MONDAY AGREED TO SELL THE 35 OIL AND GAS PARTNERSHIPS TO PARKER & PARSLEY PETROLEUM CO THE MIDLAND TEXAS INDEPENDENT OIL AND GAS COMPANY SAID IT WILL OFFER 4483 MILLION IN CASH TO THE MORE THAN 120000 INVESTORS WHO BOUGHT INTERESTS IN THE ENERGYINCOME PARTNERSHIPS SPONSORED BY PRUDENTIAL WHAT PRUDENTIAL SECURITIES DIDN'T DISCLOSE IS THAT ANOTHER BIDDER HAD MADE AN APPARENTLY HIGHER OFFER FRIDAY THAT BIDDER ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER IS LOUIS DREYFUS NATURAL GAS CORP AN OKLAHOMA CITY OKLA COMMODITIES TRADING FIRM LOUIS DREYFUS IN A LETTER DATED MAY 7 OFFERED TO BUY THE 35 ENERGY PARTNERSHIPS FOR AN AGGREGATE CASH CONSIDERATION OF 550 MILLION LESS THE AMOUNT OF ANY DISTRIBUTIONS MADE TO PARTNERS BY THE PARTNERSHIPS THIS YEAR THE PEOPLE SAID THE PARTNERSHIPS HAVE DOLED OUT ABOUT 40 MILLION IN DISTRIBUTIONS THIS YEAR PRUDENTIAL SAYS THE DISCLOSURE OF THE NEW BID COULD POSE A PROBLEM FOR PRUDENTIAL WHICH ALREADY IS SADDLED BY A MOUNTAIN OF LAWSUITS OVER ITS ENERGYINCOME PARTNERSHIP BUSINESS IT'S NOT CLEAR WHY THE BIG BROKERAGE FIRM WOULD SIGN AN AGREEMENT WITH ONE FIRM AFTER RECEIVING A POTENTIALLY HIGHER BID FROM ANOTHER COMPANY AND NOT DISCLOSE THE COMPETING BID PRUDENTIAL DECLINED TO COMMENT BUT PEOPLE FAMILIAR WITH THE MATTER SAY PRUDENTIAL AND ITS FINANCIAL ADVISER MERRILL LYNCH & CO HADN'T NEGOTIATED WITH LOUIS DREYFUS BEFORE THE PARKER & PARSLEY BID WAS ACCEPTED THE OFFER CAME TO LIGHT AFTER PARKER & PARSLEY ISSUED A TERSE ANNOUNCEMENT IT SAID PRUDENTIALBACHE ENERGY PRODUCTION INC GENERAL PARTNER OF THE 35 ENERGYINCOME PARTNERSHIPS HAS INDICATED THAT IT INTENDS TO INVESTIGATE THE PROPOSAL RECEIVED FROM AN UNNAMED THIRD PARTY PARKER & PARSLEY SAID IT INTENDS TO PROCEED WITH ITS ALLCASH TENDER OFFER WHICH STARTS TOMORROW PARKER & PARSLEY IS EXPECTED TO CONSIDER RAISING ITS BID IF IT IS DETERMINED THAT THE OFFER BY LOUIS DREYFUS IS INDEED HIGHER THAN ITS BID PEOPLE FAMILIAR WITH THE MATTER SAID WE'RE NOT RULING OUT ANY ALTERNATIVE THAT MIGHT BE AVAILABLE TO US HERBERT C WILLIAMSON III PARKER & PARSLEY'S VICE CHAIRMAN SAID IN AN INTERVIEW THE DECISION BY PRUDENTIAL TO ACCEPT PARKER & PARSLEY'S BID WHILE KNOWING ABOUT THE LOUIS DREYFUS OFFER IS EVEN MORE UNUSUAL CONSIDERING PRUDENTIAL AGREED TO PAY PARKER & PARSLEY A TOPPING FEE OF ABOUT 15 MILLION IF IT ACCEPTS ANOTHER BID PEOPLE FAMILIAR WITH THE MATTER SAID IN A LETTER DATED MAY 11 TO PRUDENTIAL LOUIS DREYFUS SAID OUR OFFER HAS NOT BEEN REVOKED AND YOU HAVE NOT INFORMED US THAT OUR OFFER HAS BEEN REJECTED ACCORDING TO PEOPLE WITH KNOWLEDGE OF THE MATTER LOUIS DREYFUS SAID IN THE LETTER THAT IT WAS PERPLEXED PRUDENTIAL FAILED TO RESPOND ADDING THAT CONSIDERATION OF ITS OFFER IS REQUIRED BY YOUR FIDUCIARY DUTIES 9305130026 930513 KUWAIT SOFTENS DEMANDS FOR BOOST IN OUTPUT QUOTA BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL KUWAIT CITY KUWAIT CONTINUES TO INSIST IT IS DUE A HIGHER OPEC QUOTA BUT THE PERSIAN GULF OIL PRODUCER SEEMS TO BE SOFTENING ITS DEMANDS CONCERNING ITS THIRDQUARTER PRODUCTION ALLOTMENT ALI AHMAD ALBAGHLI KUWAIT'S OIL MINISTER REAFFIRMED HIS INTENT TO SEEK A THIRDQUARTER QUOTA OF AT LEAST TWO MILLION BARRELS A DAY UP FROM 16 MILLION WHEN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES MEETS NEXT MONTH BUT MR ALBAGHLI WASN'T AS INSISTENT AS IN THE PAST THAT KUWAIT RECEIVE PRODUCTION PARITY WITH THE UNITED ARAB EMIRATES WHICH HAS AN OPEC ALLOTMENT OF 21 MILLION BARRELS A DAY IN ADDITION HE INDICATED EFFORTS MAY BE UNDER WAY TO RESOLVE THE PRODUCTION QUOTA ISSUE BEFORE THE MINISTERS MEET IN GENEVA JUNE 7 THE KUWAITI MINISTER TOLD A GROUP OF FOREIGN JOURNALISTS INVITED HERE TO TOUR KUWAIT'S OIL INSTALLATIONS THAT HE WILL VISIT SHORTLY WITH IRAN'S OIL MINISTER IN TEHRAN AND THAT HE EXPECTS TO CONTACT OPEC PRESIDENT ALIRIO PARRA AS WELL AS OTHERS BEFORE THE OPEC MEETING IT IS IN OUR INTEREST TO PAVE THE WAY FOR THE NEXT CONFERENCE MR ALBAGHLI SAID WE DON'T WANT ANY CONTROVERSIAL ISSUES KUWAIT'S PRODUCTION QUOTA WAS A MAJOR ISSUE AT THE FEBRUARY OPEC MEETING AFTER ACRIMONIOUS DEBATE MR ALBAGHLI RELUCTANTLY AGREED TO SCALE BACK KUWAIT'S OUTPUT BY 400000 BARRELS A DAY TO 16 MILLION BARRELS A DAY FOR THE SECOND QUARTER BUT IN RETURN HE WON A PROMISE KUWAIT WOULD GET SPECIAL CONSIDERATION FOR THE THIRD QUARTER HE ALSO THREATENED TO PUSH UP HIS PRODUCTION IF OTHERS IGNORED THEIR QUOTAS AND THAT LEAD TO A WEAKENING OF THE OIL MARKET MR ALBAGHLI LEFT NO DOUBT HE STILL INTENDS TO COLLECT ON THE COMMITMENT OF HIS COLLEAGUES WHEN THEY MEET NEXT MONTH I SHALL GO AND ASK THEM TO FULFILL THEIR OBLIGATION AS I HAVE FULFILLED MINE HE SAID MEANWHILE HE SAID KUWAIT'S PRODUCTION CAPACITY CONTINUES TO GROW HE SAID KUWAIT CAN NOW PRODUCE AS MANY AS 22 MILLION BARRELS A DAY AND WILL HAVE A PRODUCTION CAPACITY OF 24 MILLION BARRELS A DAY BY THE END OF JUNE STILL HE SAID KUWAIT WILL CONTINUE TO RESTRAIN ITS OUTPUT TO ITS CURRENT OPEC QUOTA NO MATTER WHAT OTHERS DO AT LEAST UNTIL THE RESULTS OF THE JUNE MEETING ARE KNOWN OIL MARKETS SEEMED TO ACCEPT THAT PROMISE OF RESTRAINT ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FUTURES PRICES DIDN'T REACT TO THE MIDMORNING KUWAIT NEWS TRADERS ATTRIBUTED A 14CENTSABARREL SLIDE TO 2020 LATE IN THE TRADING SESSION TO TECHNICAL FACTORS 9305130025 930513 MARKETING & MEDIA TURNER BROADCASTING POSTS 1STPERIOD LOSS CITES FASB CHANGE ATLANTA TURNER BROADCASTING SYSTEM INC REPORTED THAT FIRSTQUARTER INCOME BEFORE AN ACCOUNTING CHANGE WAS 201 MILLION OR EIGHT CENTS A SHARE COMPARED WITH NET INCOME OF 731000 A YEAR EARLIER WHEN RESULTS WERE HURT BY COSTS RELATED TO TELECASTING THE 1992 WINTER OLYMPICS AFTER A 306 MILLION ADJUSTMENT RELATED TO THE ADOPTION OF FINANCIAL ACCCOUNTING STANDARDS BOARD 109 ACCOUNTING FOR INCOME TAXES THE CABLE NEWS AND ENTERTAINMENT GIANT REPORTED A NET LOSS OF 286 MILLION OR 108 A SHARE FOR THE YEARAGO QUARTER TURNER REPORTED PERSHARE EARNINGS AMOUNTED TO LESS THAN A PENNY FIRSTQUARTER REVENUE ROSE 9 TO 398 MILLION FROM 365 MILLION A YEAR EARLIER WHILE BOTH THE ENTERTAINMENT GROUP AND NEWS OPERATION TURNED IN AN IMPROVED PERFORMANCE TURNER REPORTED A 6 MILLION OPERATING LOSS IN ITS SYNDICATION AND LICENSING SEGMENT DUE LARGELY TO A SHIFT TO LOWERMARGIN HOME VIDEO BUSINESS FROM ITS HIGHERMARGIN DOMESTIC AND INTERNATIONAL SYNDICATION OPERATIONS ON BALANCE THE NUMBERS ARE ENCOURAGING SAID JOHN S REIDY AN ANALYST WITH SMITH BARNEY IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE TURNER CLASS B SHARES CLOSED AT 2025 A SHARE UP 125 CENTS TURNER SAID OPERATING PROFIT IN ITS ENTERTAINMENT GROUP NEARLY TRIPLED TO 46 MILLION FROM 16 MILLION LAST YEAR WHEN IT SPENT 23 MILLION TO TELECAST THE WINTER GAMES THE COMPANY SAID A 23 INCREASE IN SUBSCRIPTION REVENUE AND A 7 INCREASE IN ADVERTISING REVENUE BUOYED THOSE RESULTS THE COMPANY SAID OPERATING PROFIT IN ITS NEWS OPERATIONS ROSE 23 TO 52 MILLION FROM 42 MILLION LAST YEAR DUE TO A 16 INCREASE IN ADVERTISING AND A 17 INCREASE IN SUBSCRIPTION REVENUE 9305130024 930513 TECHNOLOGY & HEALTH INTEL CORP TARGETS MAKER OF LAPTOPS IN ITS CLONE WAR BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP APPEARS TO HAVE BEGUN A NEW CHAPTER IN ITS BATTLE WITH COMPETITORS BY CHALLENGING A MANUFACTURER WHO SELLS COMPUTERS MADE WITH CLONES OF INTEL CHIPS THE SANTA CLARA CALIF COMPANY SAID IT FILED A REQUEST WITH THE INTERNATIONAL TRADE COMMISSION SEEKING AN INVESTIGATION OF A TAIWANESE COMPANY THAT IS EXPORTING TO THE US LAPTOP COMPUTERS MADE WITH CHIPS DEVELOPED BY ADVANCED MICRO DEVICES INC AND CYRIX CORP INTEL ALLEGES THAT THE COMPUTER'S DESIGN COMBINES THE CLONE CHIPS WITH OTHER COMPONENTS IN A WAY THAT INFRINGES ON ITS PATENT ITS MANUFACTURER TWINHEAD INTERNATIONAL CORP COULD NOT BE REACHED FOR COMMENT INTEL HAS SPENT MANY MILLIONS OF DOLLARS DEVELOPING ITS TECHNOLOGY AND WE OWE IT TO OUR SHAREHOLDERS TO MAKE SURE WE ARE COMPENSATED FOR ITS USE SAID F THOMAS DUNLAP INTEL ATTORNEY MR DUNLAP SAID THAT MANUFACTURERS USING CLONE CHIPS IN SUCH PATENTED STRUCTURES MUST SIGN LICENSE AGREEMENTS REQUIRING THEM TO PAY INTEL ROYALTIES OF 1 OF THE WHOLESALE COST OF THEIR COMPUTERS IF WE ULTIMATELY WIN HERE I THINK IT WILL MAKE MORE PEOPLE WANT TO SIGN UP HE SAID THE INTERNATIONAL TRADE COMMISSION HAS 30 DAYS TO REVIEW THE REQUEST AND IS DIRECTED BY LAW TO RENDER A DECISION 12 TO 18 MONTHS AFTER AN INVESTIGATION BEGINS HE SAID A SPOKESWOMAN FOR CYRIX A SEMICONDUCTOR MAKER IN RICHARDSON TEXAS SAID CYRIX HAS BEEN URGING ITS CUSTOMERS NOT TO SIGN THE LICENSING AGREEMENT WITH INTEL WE SEE IT AS A BLACKMAIL STRATEGY WHEREBY INTEL IS OFFERING CUSTOMERS THE CHOICE OF EITHER PAYING AN UNWARRANTED LICENSING FEE OR LIVING WITH THE LOOMING THREAT OF FUTURE LITIGATION SHE SAID LAST MONTH INTEL SAID IT RECEIVED A FAVORABLE RULING AGAINST CYRIX THAT WOULD ALLOW IT TO SUE COMPUTER MANUFACTURERS WHO USE CLONES OF INTEL'S CHIPS WITHOUT AN INTEL LICENSE CYRIX DISPUTES INTEL'S INTERPRETATION OF THE RULING SAYING ITS CUSTOMERS ARE PROTECTED FROM LEGAL LIABILITY INVOLVING USE OF ITS CLONES AND THAT THE CASE INVOLVING INTEL IS STILL PENDING A SPOKESMAN FOR ADVANCED MICRO SUNNYVALE CALIF SAID INTEL'S ACTION IS IN CHARACTER BUT INAPPROPRIATE AND WE SEE IT AS AN ANTICOMPETITIVE ACTION THAT MAY CONFLICT WITH US ANTITRUST LAWS ADVANCED MICRO AND INTEL ARE CURRENTLY LOCKED IN A LEGAL BATTLE IN ANOTHER PATENT DISPUTE INVOLVING THE DESIGN OF AMD'S VERSIONS OF INTEL'S CHIPS 9305130023 930513 KODAK HOLDERS SEND A WARNING TO DIRECTORS PROPOSAL FOR YEARLY ELECTION RECEIVES 42 OF VOTE BOARD SLATE IS APPROVED BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL FORT LAUDERDALE FLA EASTMAN KODAK CO SHAREHOLDERS APPROVED MANAGEMENT'S SLATE OF DIRECTORS BUT IN A SEPARATE VOTE SENT THE BOARD A WARNING BY NEARLY APPROVING A PROPOSAL TO BRING THE ENTIRE BOARD UP FOR ELECTION EACH YEAR DURING A NEWS CONFERENCE AFTER THE ANNUAL MEETING HERE CHAIRMAN KAY R WHITMORE SAID HE WAS IMPRESSED BY THE 42 VOTE AGAINST KODAK'S STAGGERED BOARD SYTEM WHICH WAS MUCH HIGHER THAN EXPECTED THAT'S A MESSAGE HE SAID THE BOARD OF DIRECTORS HAS GOT TO LOOK AT THAT THE BOARD'S OTHER 12 MEMBERS SLIPPED AWAY AFTER THE MEETING AND WEREN'T AVAILABLE FOR COMMENT MR WHITMORE ACKNOWLEDGED THAT HIS JOB IS ON THE LINE TELLING SHAREHOLDERS AT THE MEETING THAT HIS MANAGEMENT TEAM CAN TURN AROUND THE ROCHESTER NY PHOTOGRAPHY COMPANY BETTER MORE COMPLETELY AND WITH BETTER LONGTERM OUTCOME THAN ANYONE ELSE MR WHITMORE HAS ENDURED INTENSE CRITICISM SINCE APRIL 28 WHEN HIS HIGHLY LAUDED CHIEF FINANCIAL OFFICER CHRISTOPHER J STEFFEN QUIT AFTER ONLY 11 WEEKS ON THE JOB KODAK'S STOCK HAD SOARED ON MR STEFFEN'S PROMISES FOR AN AGGRESSIVE TURNAROUND PLAN FOR THE STODGY INDUSTRIAL COMPANY BUT PLUNGED ON HIS DEPARTURE THE STOCK HAS RECOVERED SINCE THEN PARTLY BECAUSE THE NORMALLY LOWPROFILE MR WHITMORE HAS BEEN MEETING WITH INVESTORS TO REASSURE THEM THAT HE CAN DELIVER THE TURNAROUND PLAN BY SEPTEMBER IN LIGHT TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY KODAK SHARES CLOSED AT 53 UP 1625 MR WHITMORE DECLINED TO ELABORATE ON THE TURNAROUND PLAN BUT HE PROMISED THAT WHEN IT IS IMPLEMENTED KODAK WILL BE LESS LARGE AND LESS COMPLEX ANALYSTS HOPE HE WILL SELL OR SPIN OFF AN ENTIRE BUSINESS UNIT SUCH AS COPIERS OR CHEMICALS MR WHITMORE ALSO PROMISED KODAK WILL DELIVER SOLID GAINS IN 1993 EARNINGS AND RECORD EARNINGS IN 1994 IN 1992 KODAK EARNED 115 BILLION OR 353 A PRIMARY SHARE IN 1988 ITS PEAK IT EARNED 140 BILLION OR 431 A SHARE ON MATTERS OF CORPORATE GOVERNANCE MR WHITMORE SAID THE BOARD FORMED A NEW FINANCE COMMITTEE OF FOUR OUTSIDE DIRECTORS TO HELP MAKE KEY FINANCIAL DECISIONS AND WILL NO LONGER ALLOW RETIRED CHAIRMEN TO SIT ON THE BOARD THERE ARE CURRENTLY NINE OUTSIDERS ON KODAK'S BOARD MR WHITMORE SEEMED IRKED AT THE IDEA THAT ANGRY SHAREHOLDERS HAD MOTIVATED HIM TO TURN AROUND THE COMPANY HE REPEATEDLY TOLD REPORTERS HE IS PERSONALLY MOTIVATED WHEN ASKED WHY IN THAT CASE HE HAS TAKEN SO LONG TO START TURNING AROUND THE COMPANY MR WHITMORE SAID WE'RE IN THE MIDDLE OF A MAJOR TECHNOLOGICAL TRANSFORMATION FROM TRADITIONAL PHOTOGRAPHY TO ELECTRONIC IMAGING METHODS MR WHITMORE GOT SOME SUPPORT FROM SHAREHOLDER ACTIVIST ROBERT MONKS MR MONKS WHO HAS OPENLY CRITICIZED MR WHITMORE FOR MOVING TOO SLOWLY PRAISED THE CHAIRMAN DURING THE ANNUAL MEETING FOR BEING A MODEL IN TERMS OF SENSITIVITY TO SHAREHOLDERS IN RECENT MONTHS BUT FRUSTRATION REMAINS HIGH ONE ANGRY SHAREHOLDER JOHN T RAGUSA OF TEXAS COMPLAINED ABOUT POOR EARNINGS AND HIGH COSTS AND THEN SAID THE PEOPLE DIRECTLY RESPONSIBLE FOR THIS MESS ARE SITTING RIGHT IN FRONT INDICATING THE DIRECTORS WHEN MR WHITMORE URGED MR RAGUSA TO WRAP UP HIS LENGTHY COMMENTS THE TEXAN REPLIED I WOULD REMIND YOU THAT YOU ARE AN EMPLOYEE HERE PROMPTING SCATTERED APPLAUSE SEPARATELY MR WHITMORE SAID HE HAS INTERVIEWED FOUR POTENTIAL SUCCESSORS TO MR STEFFEN INCLUDING THREE THIS WEEK AND THAT SO FAR TWO ARE STRONG CANDIDATES MR WHITMORE SAID HE ISN'T ANGRY AT MR STEFFEN FOR QUITTING ON THE EVE OF THE ANNUAL MEETING CHRIS STEFFEN IS A FIRST CLASS PERSON I HOPE SOMEBODY MAKES HIM CHIEF EXECUTIVE OFFICER OF SOMETHING BECAUSE HE REALLY KNOWS HOW TO TURN THINGS AROUND MR STEFFEN REMAINS UNAVAILABLE FOR COMMENT 9305130022 930513 DEL WEBB ARA PAY 13 MILLION IN FINES IN LAKEDUMPING CASE PHOENIX DEL WEBB CORP AND ARA SERVICES INC PAID A TOTAL OF 13 MILLION IN FINES TO SETTLE CHARGES THAT THEY CREATED AN ILLEGAL UNDERWATER LANDFILL BY THROWING DEBRIS INTO LAKE POWELL SAID ARIZONA ATTORNEY GENERAL GRANT WOODS THESE COMPANIES TREATED THE LAKE AS IF IT WERE THEIR OWN MR WOODS SAID IN A NEWS RELEASE MORE THAN 100 DUMPTRUCK LOADS OF DEBRIS AND 1000 BATTERIES WERE REMOVED MARINA OPERATIONS CORP A DEL WEBB SUBSIDIARY ENTERED A NO CONTEST PLEA TO A CRIMINAL DAMAGE CHARGE AND PAID A 1 MILLION FINE ARA'S ARA LEISURE SERVICES DIVISION PAID A 225000 CIVIL FINE THE SETTLEMENT ALSO INCLUDED 100000 PAID BY THE TWO COMPANIES TO DEFRAY ARIZONA'S INVESTIGATION COSTS ARA SERVICES IS A SERVICE MANAGEMENT CONCERN BASED IN PHILADELPHIA DEL WEBB BASED IN PHOENIX DEVELOPS RETIREMENT COMMUNITIES THE DUMPING OCCURRED FROM 1980 TO 1990 AT FIVE HOUSEBOAT MARINAS ON LAKE POWELL THE CURRENT OPERATOR ARA SERVICES TOOK OVER THE MARINA OPERATIONS FROM DEL WEBB IN 1988 HOUSEBOAT RENTAL EMPLOYEES ROUTINELY DISCARDED VARIOUS ITEMS INTO THE LAKE INCLUDING BATTERIES BARBECUE GRILLS TIRES AND SILVERWARE IT HAS ALWAYS BEEN OUR POLICY TO COMPLY WITH ALL ENVIRONMENTAL LAWS AND WE ARE PROFOUNDLY DISTRESSED AND EMBARRASSED THAT FORMER MARINA OPERATIONS' EMPLOYEES ACTED IN THIS MANNER SAID PHILIP J DION DEL WEBB CHAIRMAN AND CHIEF EXECUTIVE OFFICER ARA SAID IT AGREED TO A CIVIL CONSENT JUDGMENT WITHOUT ADMITTING LIABILITY TERRANCE J BISCHSEL PRESIDENT OF ARA'S PARKS AND RESORTS DIVISION SAID ARA HAS SPENT ABOUT 15 MILLION ON CLEANUP AND PREVENTIVE MEASURES 9305130021 930513 INTERNATIONAL NESTLE CHIEF EXECUTIVE EXPECTS IMPROVEMENT IN 1993 PROFIT SALES SPECIAL TO THE WALL STREET JOURNAL ZURICH NESTLE SA CHIEF EXECUTIVE OFFICER HELMUT MAUCHER PREDICTED THE COMPANY WILL INCREASE SALES AND NET PROFIT THIS YEAR AFTER A SATISFACTORY FIRST QUARTER AFTER A SUCCESSFUL 1992 NESTLE WILL HAVE DECENT GROWTH IN SALES AND PROFIT IN 1993 MR MAUCHER SAID LAST YEAR NESTLE SALES ROSE 8 TO 545 BILLION SWISS FRANCS 374 MILLION AND NET PROFIT INCREASED 92 TO 27 BILLION FRANCS IN THE LATEST FIRST QUARTER CONSOLIDATED SALES AT THE SWISS FOOD CONCERN ROSE 6 TO 135 BILLION FRANCS COMPARED WITH 127 BILLION FRANCS A YEAR EARLIER NESTLE DOESN'T RELEASE QUARTERLY PROFIT FIGURES ON THE ZURICH STOCK EXCHANGE NESTLE ROSE 10 FRANCS TO 1120 FRANCS A SWISS VOLKSBANK BROKER SAID INVESTORS BOUGHT ON MR MAUCHER'S POSITIVE STATEMENT FOR THE YEAR ALTHOUGH FIRSTQUARTER RESULTS WEREN'T SPECTACULAR NESTLE HAS BEEN OVERSOLD RECENTLY AND INVESTORS TOOK THEIR CHANCE FOR A GOOD BUY HE SUGGESTED MR MAUCHER NOTED ONLY 1 OF THE FIRSTQUARTER SALES BOOST CAME FROM INCREASED VOLUME HE BLAMED RECESSIONARY CONDITIONS IN EUROPEAN MARKETS FOR A SLOW START TO THE YEAR HOWEVER HE SUGGESTED PERFORMANCE IN EUROPE WOULD PICK UP THROUGH 1993 AS RECENT ACQUISITIONS AND NEW PRODUCTS TOOK EFFECT WE EXPECT AN IMPROVEMENT IN EUROPE THIS YEAR MR MAUCHER SAID IN THE SECOND HALF OF THE YEAR NESTLE WILL START REALIZING THE POTENTIAL OF ITS TAKEOVER IN 1992 OF THE FRENCH MINERAL WATER CONCERN SOURCE PERRIER SA A NESTLE OFFICIAL SAID HE PUT THE NET COST TO NESTLE OF THE PERRIER ACQUISITION AT AROUND 22 BILLION SWISS FRANCS AFTER DIVESTING AND RESTRUCTURING 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 9305130020 930513 TANGLE OVER HIT POLLOCK WORK LOOKS A BIT LIKE THE PAINTING BY JONATHAN M MOSES AND ALEXANDRA PEERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK ONE OF JACKSON POLLOCK'S FAMOUS DRIP PAINTINGS SOARED TO 24 MILLION IN THE AUCTION SALESROOM LAST WEEK THERE'S JUST ONE HITCH THE PAINTING IS UNDER A LEGAL CLOUD THE POLLOCK NUMBER 19 1948 WENT ON THE BLOCK AT CHRISTIE'S INTERNATIONAL PLC MAY 5 THE STAR OF THE AUCTION HOUSE'S CONTEMPORARY ART SALES BUT BIDDERS FILING INTO CHRISTIE'S PARK AVENUE SALESROOM FOUND AN UNPRECEDENTED ANNOUNCEMENT ON THEIR CHAIRS OWNERSHIP OF THE PAINTING WAS BEING CHALLENGED IN NEW YORK SURROGATE'S COURT IN MANHATTAN A LOT IS AT STAKE HERE THE PAINTING WAS SOLD BY THE EXECUTOR OF THE ESTATE OF JANET HAUCK WIDOW OF A MINOR ABSTRACT EXPRESSIONIST PAINTER WHO WENT TO ART SCHOOL WITH POLLOCK BUT MRS HAUCK'S DAUGHTER SAYS SHE REALLY OWNS THE PAINTING PLUS ANOTHER MILLIONDOLLAR POLLOCK THAT EARLIER THIS MONTH WAS GIVEN TO NEW YORK'S SOLOMON R GUGGENHEIM MUSEUM IF THE DAUGHTER WINS SHE SAYS SHE WILL UNWIND THE CHRISTIE'S SALE AND TAKE BACK THE GUGGENHEIM'S POLLOCK WHICH HER LAWYER SAYS SHE'LL LIKELY HAVE TO SELL TO PAY TAXES WHY ALL THIS FUSS OVER A VIBRANT TANGLE OF BLACK WHITE AND RED ENAMEL PAINT POLLOCK IS CONSIDERED THE FATHER OF ACTION PAINTING AN ART MOVEMENT THAT GREW OUT OF SURREALISM AND ITS CONCERN WITH FREUDIAN PSYCHOLOGY IN ACTION PAINTING THE FRENZY OF CREATION AND THE RANDOMNESS OF THE ARTISTS' UNCONSCIOUS WAS CONSIDERED ALMOST AS IMPORTANT AS THE RESULT POLLOCK THREW AND DRIPPED PAINT ONTO CANVASES TO CREATE HIS ACTION MASTERPIECES WHICH WERE ONCE MOCKED BY TRADITIONALIST CRITICS THE GUGGENHEIM CLEARLY VALUES POLLOCK'S 1950 PAINTING THE MUSEUM WHICH OWNS NO OTHER PAINTING REFLECTING MR POLLOCK'S DRIP STYLE CONSIDERS IT A CRITICAL WORK FOR ITS COLLECTION GUGGENHEIM CURATOR LISA DENNISON SAID IN AN AFFIDAVIT SUBMITTED TO THE SURROGATE'S COURT DESPITE THE CLOUD HANGING OVER THE 1948 POLLOCK FOUR BIDDERS VIED AGGRESSIVELY FOR IT AT CHRISTIE'S PUSHING THE PRICE WELL ABOVE THE PRESALE ESTIMATE OF 1 MILLION TO 15 MILLION IT WAS THE HIGHEST PRICE PAID FOR ANY OF THE MORE THAN 900 CONTEMPORARY ARTWORKS UP FOR SALE AT CHRISTIE'S AND RIVAL SOTHEBY'S HOLDINGS INC AN EARLIER PAUL CEZANNE IMPRESSIONIST MASTERPIECE FROM 189094 SOLD FOR 286 MILLION ON TUESDAY THE WINNER OF THE POLLOCK WAS AN ANONYMOUS COLLECTOR BIDDING OVER THE TELEPHONE FROM EUROPE LOSING BIDDERS INCLUDED MAGAZINE PUBLISHER FRANCES LEAR CHRISTOPHER BURGE PRESIDENT OF CHRISTIE'S US OPERATIONS DECLINED TO COMMENT ON THE LEGAL DISPUTE THE HAUCKS HAD LOTS OF TIES TO THE ART WORLD THE LATE MRS HAUCK AND HER HUSBAND FRED WERE FRIENDS OF MR POLLOCK AND OF HARRY G GUGGENHEIM NEPHEW OF THE FOUNDER OF THE FAMOUS NEW YORK MUSEUM AND ALICIA PATTERSON GUGGENHEIM HIS WIFE ACCORDING TO COURT PAPERS MRS HAUCK DIED IN JUNE 1991 WITH THE TWO MILLIONDOLLAR POLLOCKS SHE WILLED THE ONE PAINTED IN 1950 TO THE GUGGENHEIM THE OTHER THE 1948 PAINTING THAT JUST SOLD AT CHRISTIE'S WAS WILLED TO HER DAUGHTER WHO WAS ALSO MRS GUGGENHEIM'S GODDAUGHTER THE EXECUTOR OF MRS HAUCK'S ESTATE HONORED THE BEQUEST TO THE GUGGENHEIM BUT PUT THE 1948 POLLOCK UP FOR AUCTION TO SETTLE THE ESTATE'S DEBTS MS WARD'S ATTORNEY DEAN LYNCH SAYS THE PAINTING SOLD AT CHRISTIE'S FOR 24 MILLION WAS A GIFT FROM MR POLLOCK TO MS WARD'S PARENTS SHE FEELS THAT AUCTIONING IT IS AS BAD AS SELLING THE FAMILY CHINA MS WARD MAINTAINS IN COURT THAT HER MOTHER GAVE HER THE PAINTING BEFORE DYING AND THEREFORE IT ISN'T PART OF THE ESTATE OR UNDER THE CONTROL OF THE EXECUTOR MS WARD HAS USED THE SAME ARGUMENT BEFORE AND LOST LAST YEAR SHE CHALLENGED THE PROPOSED GIFT OF THE 1950 WORK TO THE GUGGENHEIM MS WARD SAID THAT PAINTING TOO WAS GIVEN TO HER BEFORE MRS HAUCK DIED BUT SURROGATE JUDGE EVE PREMINGER RULED IN DECEMBER AGAINST MS WARD AND THE PAINTING IS IN THE POSSESSION OF THE MUSEUM ALTHOUGH MS WARD IS APPEALING THE DECISION LAWYERS FOR THE GUGGENHEIM SAY THERE IS LITTLE CHANCE THAT MS WARD WILL WIN HER APPEAL OF JUDGE PREMINGER'S ORDER GIVING THE 1950 POLLOCK TO THE GUGGENHEIM IN TERMS OF DONATIONS TO A MUSEUM IT'S VERY RARE THAT YOU HAVE SUCH GOOD EVIDENCE SAYS JOAN MCGIVERN AN ATTORNEY FOR THE MUSEUM POINTING TO A LETTER FROM MRS HAUCK DESCRIBING THE BEQUEST IN HER WILL AND THE DONOR'S LONG ASSOCIATION WITH THE MUSEUM FOR HIS PART RICHARD G HEWITT AN ATTORNEY FOR THE EXECUTOR SAYS MRS HAUCK'S ESTATE HAS NO MONEY AND OWES MORE THAN 500000 IN TAXES MUCH OF IT FOR THE VALUE OF THE 1948 PAINTING LEAVING HIM WITH NO CHOICE BUT TO SELL THE IMPORTANT WORK WHATEVER MONEY IS LEFT OVER AFTER TAXES AND THE PAYMENT OF FEES FOR THE ATTORNEYS AND THE EXECUTOR WILL GO TO MS WARD MR HEWITT SAYS WHILE THE SALE IS AGAINST MS WARD'S WISHES NEW YORK PROBATE LAW GENERALLY HOLDS THAT THE OBLIGATION TO SETTLE THE ESTATE'S DEBT SUPERSEDES ANY PARTICULAR BEQUESTS OF ASSETS ANY CHALLENGE TO THE SALE BY MS WARD IS IRRATIONAL MR HEWITT MAINTAINS IN ADDITION CHARITABLE GIFTS GO OUT OF THE ESTATE FIRST WHICH IS WHY THE GUGGENHEIM GOT ITS PAINTING DESPITE THE ESTATE'S DEBTS MS WARD'S ATTORNEY DOESN'T DISPUTE THAT THE ESTATE MAY OWE TAXES BUT SAID THAT ISN'T HIS CLIENT'S PROBLEM SINCE SHE WAS GIVEN THE PAINTING BEFORE HER MOTHER'S DEATH JUDGE PREMINGER HAS SAID A HEARING IS NECESSARY TO CONSIDER THE DAUGHTER'S CLAIMS TO THE 1948 POLLOCK IT WILL BE HELD ON MAY 24 CHRISTIE'S SAYS THE PURCHASER OF THE POLLOCK WILL NOT HAVE TO PAY THE 24 MILLION UNTIL THE COURT'S RULING MEANWHILE THE PAINTING IS IN A VAULT AT CHRISTIE'S 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 9305130019 930513 BUSINESS BRIEF WISCONSIN ENERGY CORP UTILITY AGREES TO ACQUIRE WISCONSIN SOUTHERN GAS CO WISCONSIN ENERGY CORP MILWAUKEE SAID IT AGREED TO ACQUIRE WISCONSIN SOUTHERN GAS CO IN AN EXCHANGE OF STOCK VALUED AT ABOUT 447 MILLION THE UTILITY SAID EACH OF WISCONSIN SOUTHERN'S 1003392 COMMON SHARES OUTSTANDING WOULD BE CONVERTED INTO WISCONSIN ENERGY COMMON STOCK BASED ON A VALUE OF 4450 FOR EACH SHARE OF WISCONSIN SOUTHERN THE TRANSACTION IS PROPOSED TO BE STRUCTURED AS A TAXFREE REORGANIZATION THE COMPANY SAID THE EXACT NUMBER OF WISCONSIN ENERGY SHARES TO BE USED IN THE TRANSACTION WILL BE DETERMINED IN FURTHER NEGOTIATIONS FOR A DEFINITIVE AGREEMENT THE TRANSACTION IS SUBJECT TO AMONG OTHER THINGS APPROVAL BY THE BOARDS OF BOTH COMPANIES AND BY SHAREHOLDERS OF WISCONSIN SOUTHERN 9305130018 930513 WHAT'S NEWS WORLDWIDE THE PENTAGON MAPPED A BOSNIA STRATEGY THAT RELIES ON AIR STRIKES WITH US ALLIES RESISTING A LIFTING OF THE ARMS EMBARGO ON BOSNIA THE DEFENSE DEPARTMENT IS PLANNING A MILITARY OPTION THAT CONSISTS OF AIR STRIKES AGAINST SERB ARTILLERY POSITIONS AND INFRASTRUCTURE OFFICIALS SAID THE RENEWED ATTENTION TO THE AIR STRIKESONLY OPTION APPEARS TO BE A VICTORY FOR THE AIR FORCE WHICH HAS BEEN AT ODDS WITH JOINT CHIEFS CHAIRMAN POWELL WE MAY NOT STOP ALL OF THE ARTILLERY IMMEDIATELY BUT WE'D MAKE IT SO PAINFUL THAT THEY'D WANT TO STOP IT ONE PENTAGON OFFICIAL SAID DESPITE SERBIA'S PLEDGE TO CUT OFF NONHUMANITARIAN SUPPLIES TO BOSNIAN SERBS A VISIT TO A BORDER POST SHOWED THAT ALL GOODS AND TRUCKS PASSED THROUGH RENO ENDORSED A SENATE BILL THAT PROVIDES TOUGH PENALTIES FOR ANTIABORTION ACTIVISTS WHO USE VIOLENCE OR INTIMIDATION TO BAR ACCESS TO CLINICS THE ATTORNEY GENERAL TOLD A SENATE PANEL THAT THE BILL WOULD STRIKE A BALANCE BETWEEN ABORTION OPPONENTS' FREESPEECH RIGHTS AND THE RIGHTS OF WOMEN TO GET ABORTIONS AND OF DOCTORS TO PERFORM THEM A FEDERAL JUDGE REOPENED A CHALLENGE TO PENNSYLVANIA'S STRICT ABORTION LAW SAYING NEW SUPREME COURT GUIDELINES CAST THE CASE IN A DIFFERENT LIGHT THE RULING MEANS A NEW ROUND OF COURT ARGUMENTS WILL FURTHER DELAY IMPLEMENTATION OF THE LAW PASSED IN 1989 THE FDA PROPOSED LABELING RULES FOR SUNSCREENS AND SUNTAN LOTIONS UNDER THE PLAN LABELS WOULD HAVE TO INCLUDE LANGUAGE ABOUT POTENTIAL HARM FROM THE SUN AND ABOUT THE PRODUCTS' ABILITY TO PROTECT AGAINST IT ALSO SUNSCREENS WOULDN'T BE ALLOWED TO OFFER A SUN PROTECTION FACTOR HIGHER THAN 30 COLONRECTAL CANCER DEATHS COULD BE CUT BY ONETHIRD WITH ANNUAL USE OF A FECAL BLOOD TEST A STUDY FOUND THE FINDINGS ON SMITHKLINE BEECHAM'S HEMOCCULT TEST CONTRAST MARKEDLY WITH A STUDY PUBLISHED TWO MONTHS AGO THAT QUESTIONED THE VALUE OF STOOL BLOOD TESTS STRIKES WERE EXPECTED TO SPREAD IN EASTERN GERMANY'S STEEL ENGINEERING AND ELECTRICAL INDUSTRIES AS WORKERS IN THREE MORE STATES VOTED TO SUPPORT THE WORK STOPPAGE SEPARATELY THE GOVERNOR OF BAVARIA STATE MAX STREIBL DECIDED TO RESIGN AMID SCANDAL ALLEGATIONS CHANCELLOR KOHL TOLD A GROUP OF JEWISH LEADERS HIS GOVERNMENT INTENDED TO MAKE UNSPECIFIED MODIFICATIONS IN A CONTROVERSIAL DRAFT LAW THAT WOULD TAX JEWS AS WELL AS NONJEWS FOR THE RETURN OF NAZISEIZED PROPERTY IN THE FORMER EAST GERMANY THE WORLD JEWISH CONGRESS SAID AN IMPRISONED CHINESE DISSIDENT ALLEGED THAT HE HAS BEEN TORTURED AND PHYSICALLY MISTREATED FOR THE PAST TWO YEARS IN AN ACCOUNT SMUGGLED OUT OF PRISON LIU GANG 32 A LEADER OF THE 1989 TIANANMEN SQUARE PROTESTS SAID THE MISTREATMENT HAS SEVERELY DAMAGED HIS HEALTH HE WAS SENTENCED TO SIX YEARS IN PRISON IN 1991 RIVAL MILITIAS IN AFGHANISTAN POUNDED EACH OTHER WITH TANK AND ROCKET FIRE KILLING AT LEAST 72 PEOPLE AND WOUNDING HUNDREDS IN KABUL MORE THAN 300 ROCKETS SLAMMED INTO THE CAPITAL BEFORE DAWN IT WAS THE FIERCEST CLASH SINCE LEADERS OF MUSLIM GUERRILLA FACTIONS FORGED A PEACE PACT IN MARCH ITALY'S NEW GOVERNMENT WON A VOTE OF CONFIDENCE CLEARING THE WAY FOR PRIME MINISTER CIAMPI TO ENACT PROMISED POLITICAL REFORMS SEPARATELY FRANCO NOBILI CHAIRMAN OF THE STATEOWNED INDUSTRIAL CONGLOMERATE IRI WAS ARRESTED ON CORRUPTION CHARGES RELATED TO ITALY'S 15MONTHOLD PAYOFF SCANDAL CUBA WANTS TO END THREE DECADES OF HOSTILITY WITH THE US BY OPENING BILATERAL TALKS ACCORDING TO FOREIGN MINISTER ROBERTO ROBAINA CUBA HAS CALLED FOR TALKS WITH THE US BEFORE BUT HAS BEEN SHUNNED THE US PRESENTED A PAPER AT THE MIDEAST PEACE TALKS TO TRY TO BRIDGE DIFFERENCES BETWEEN ISRAELIS AND PALESTINIANS ON PALESTINIAN SELFRULE ACCORDING TO THE CHIEF ISRAELI NEGOTIATOR BUT HE SAID THAT THE PALESTINIANS DIDN'T ATTEND THE MEETING AT WHICH THE US PAPER WAS DISCUSSED 9305130017 930513 WHO'S NEWS SYSCO CORP SYSCO CORP HOUSTON GREGORY K MARSHALL 45 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT MULTIUNIT SALES OF THIS FOODSERVICE DISTRIBUTION CONCERN HE WAS SENIOR VICE PRESIDENT OF SYSCO AND PRESIDENT OF SYGMA NETWORK INC A SUBSIDIARY HE REMAINS CHIEF EXECUTIVE OFFICER OF SYGMA 9305130016 930513 BUSINESS BRIEF ARGENTARIA CORP BANCARIA DE ESPANA MADRIDRUN BANK SHARES GAIN 11 IN INITIAL SESSION SHARES IN SPAIN'S STATERUN BANKING GROUP ARGENTARIA CORP BANCARIA DE ESPANA SURGED HIGHER IN THEIR DEBUT SESSION ON THE MADRID STOCK EXCHANGE FOLLOWING A GLOBAL SHARE OFFERING WITHIN 15 MINUTES OF THE OPENING ARGENTARIA SHARES WERE CHANGING HANDS AT 4375 PESETAS 3706 UP 15 FROM THE OPENING PRICE OF 3800 PESETAS ARGENTARIA SHARES BEGAN TO COOL OFF BY MIDMORNING TO CLOSE 430 PESETAS HIGHER AT 4230 PESETAS A GAIN OF 11 IN ADDITION TO MADRID'S FOUR STOCK EXCHANGES ARGENTARIA SHARES BEGAN TRADING YESTERDAY ON WALL STREET AND LONDON'S STOCK EXCHANGE AUTOMATED QUOTATION INTERNATIONAL MADRID OFFERED A TOTAL OF 3136 MILLION ARGENTARIA SHARES OR 2499 OF SHARE CAPITAL IN THE GLOBAL PLACEMENT OF THE TOTAL 63 OF SHARES WERE SOLD DOMESTICALLY AND 37 WENT TO NONSPANISH INVESTORS 9305130015 930513 HEARD ON THE STREET GRAND MET SHARES ARE READY TO START COOKING WITH EXPECTATIONS OF EARNINGS IMPROVEMENT BY SHOBA PURUSHOTHAMAN AND WILLIAM POWER STAFF REPORTERS OF THE WALL STREET JOURNAL TWO YEARS AFTER IT BEGAN TRADING ON THE NEW YORK STOCK EXCHANGE THE STOCK OF GRAND METROPOLITAN OF BRITAIN IS SHOWING ALL THE SIZZLE OF A SOGGY WHOPPER BUT ACCORDING TO A FEW BULLS IN LONDON THE SHARES OF THE FOODANDDRINK CONGLOMERATE ARE FINALLY READY TO HEAT UP GRAND MET WITH BRANDS FROM SMIRNOFF TO HAAGENDAZS TO BURGER KING HOME OF THE WHOPPER HAS BEEN UNDER A CLOUD AS ITS WEAK NORTH AMERICAN EARNINGS DETERRED INVESTORS QUOTED ON THE BIG BOARD AS AN AMERICAN DEPOSITARY RECEIPT GRAND MET IS DOWN 5 THIS YEAR AFTER FALLING 14 LAST YEAR US INSTITUTIONAL INVESTORS HAVE SHUNNED THE STOCK SO FAR THE MARKET HAS DRAWN THE WRONG CONCLUSIONS ABOUT GRAND MET PEOPLE HAVE MISSED THE POINT ASSERTS KEVIN FEENY ANALYST AT HENDERSON CROSTHWAITE INSTITUTIONAL BROKERS IN LONDON THE FACT IS IT'S THE ONLY ONE IN THE SECTOR THAT'S GOING TO REPORT HIGHER EARNINGS IN 1993 GRAND MET'S RESULTS FOR THE FIRST HALF THROUGH MARCH ARE DUE OUT THIS MORNING WITH PRETAX PROFIT EXPECTED TO BE 404 MILLION 6226 MILLION COMPARED WITH 402 MILLION IN THE YEAREARLIER PERIOD AND THE COMPANY EXPECTS A MUCH STRONGER SECOND HALF THAN A YEAR AGO YOU WON'T GET A CLEAR READING ON GRAND MET'S PROSPECTS BY CONSULTING WALL STREET OUT OF SEVEN US STOCKMARKET ANALYSTS FOLLOWING THE COMPANY TWO RECOMMEND BUYING IT TWO RECOMMEND SELLING AND THREE ARE NEUTRAL SAYS ZACKS INVESTMENT RESEARCH ANOTHER MAJOR ANALYST SAYS HE STOPPED FOLLOWING GRAND MET COMPLETELY BECAUSE IT'S SO DEAD THE ADRS WERE UNCHANGED AT 26 3/4 ON THE BIG BOARD WITH EACH ADR DENOTING FOUR SHARES THE BULLS HOWEVER SAY INVESTORS HAVE IGNORED SOME SIGNIFICANT CHANGES IN RECENT MONTHS AND THAT THEY ARE JUDGING GRAND MET BY ITS PAST RATHER THAN ITS FUTURE ONE IMPORTANT THING THEY ARE MISSING IS THAT GRAND MET'S WEAK NORTH AMERICAN EARNINGS IN 1992 WEREN'T THE START OF A TREND BUT INSTEAD WERE A ONETIME ABERRATION THE BULLS SAY LAST YEAR WAS A BAD ONE FOR GRAND MET'S FOOD BUSINESS ESPECIALLY THE GREEN GIANT OPERATIONS IN THE US A HARVEST GLUT IN THE US VEGETABLE MARKET PROMPTED A PRICE WAR AMONG RETAILERS AND SENT PROFITS TUMBLING GRAND MET ENDED UP HAVING TO TAKE INVENTORY WRITEOFFS THAT KILLED SECONDHALF PROFIT GREEN GIANT WAS HORRENDOUS SAYS MR FEENY THAT SITUATION HAS CHANGED WHAT WAS A VEGETABLE GLUT IN THE US LAST YEAR IS TURNING INTO AN ABNORMALLY POOR HARVEST THIS YEAR NOTES MORGAN STANLEY INTERNATIONAL'S CHARLES WINSTON MR FEENY EXPECTS NORTH AMERICAN FOOD OPERATIONS TO EARN 256 MILLION IN FISCAL 1993 UP FROM 164 MILLION IN FISCAL 1992 GRAND MET'S WINES AND SPIRITS BUSINESS WITH 12 OF THE WORLD'S TOP 100 BRANDS HAS PROVED A CASH COW THROUGHOUT THE US AND UNITED KINGDOM RECESSION RESILIENT EVEN IN THE TOUGHEST TIMES IT HAS GROWN AT A 10 RATE IN EACH OF THE PAST FIVE YEARS HAUNTING THE STOCK IS GRAND MET'S ACQUISITIVE HISTORY THE SHARES HAVE BEEN DOGGED BY FEARS THE COMPANY WILL ANNOUNCE ANOTHER LARGE PURCHASE ADDING TO ITS ALREADY HEAVY DEBTS BUT ANALYSTS SAY THE COMPANY SHOULD BE TAKEN AT ITS WORD THAT IT WILL FINANCE ACQUISITIONS FROM ASSET SALES AND THAT IT IS THROUGH WITH THE KIND OF BIGSPLASH PLAY IT MADE WHEN IT BOUGHT PILLSBURY CO IN 1989 THE CONCERN ON DEBT HAS BEEN WAY OVERDONE SAYS MR FEENY STILL SOME WOULD LIKE TO SEE GRAND MET SELL SOME LESSSPECTACULAR RETAILING UNITS SUCH AS US EYECARE CHAIN PEARLE I LIKE GRAND MET I LIKE SEVERAL OF THE THINGS THEY'VE DONE IN TERMS OF TRIMMING COSTS SAYS RONALD MORROW OF SMITH BARNEY IN NEW YORK BUT THEY'VE STILL GOT SOME PROBLEMS IN THE RESTAURANT BUSINESS AND PEARLE I'D LIKE TO SEE THEM SELL HE MAINTAINS A HOLD RATING ON THE STOCK MARTIN AINSCOUGH OF NOMURA INTERNATIONAL IN BRITAIN SAYS AN ACCOUNTING QUIRK THAT HAS TURNED OFF US INVESTORS TO GRAND MET WILL SOON DISAPPEAR BECAUSE OF DIFFERENCES IN HOW US AND BRITISH ACCOUNTING RULES TREAT LARGE ACQUISITIONS GRAND MET'S FINANCES HAVE LOOKED BETTER IN BRITAIN THAN IN THE US NOW WITH GRAND MET'S BIG ACQUISITIONS BEHIND IT THE EARNINGS FIGURES ARE BECOMING ATTRACTIVE WHEN LOOKED AT FROM A US ACCOUNTING PERSPECTIVE HE SAYS HE SAYS GRAND MET WILL APPEAR ON US BUY LISTS ONCE ITS BALANCE SHEET WINS PEOPLE OVER 9305130014 930513 CLINTON TRIMS JOBS BILL IN BID FOR ACCEPTANCE MOVE IS AN ATTEMPT TO WIN ACROSSTHEBOARD CUTS IN SPENDING PROGRAMS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE PARED BACK EVEN FURTHER ITS ALREADY MODEST JOBS BILL IN A LAST BID TO PERSUADE FELLOW DEMOCRATS TO ACCEPT AN ACROSSTHEBOARD SPENDING CUT TO PAY FOR THE MEASURE BUDGET DOCUMENTS OUTLINING THE REVISED REQUEST WERE DELAYED LAST NIGHT BUT THE ADMINISTRATION'S STRATEGY APPEARS AIMED AT PROVIDING 900 MILLION FOR SUMMER JOBS AND PUBLIC WORKS AS PART OF A SUPPLEMENTAL SPENDING BILL PENDING BEFORE THE HOUSE APPROPRIATIONS COMMITTEE THIS MORNING ALTHOUGH THERE REMAINS SYMPATHY AMONG LAWMAKERS FOR THE PRESIDENT'S REQUESTS ANY ACROSSTHEBOARD CUT FACES OPPOSITION FROM SENIOR DEMOCRATS FEARFUL OF THE IMPACT ON PROGRAMS IN THE FISCAL YEAR ENDING SEPT 30 THE EXERCISE RISKS EMBARRASSING MR CLINTON AND ADMINISTRATION OFFICIALS APPEARED FRUSTRATED BY THEIR INABILITY TO REACH AGREEMENT PRIOR TO THE PROPOSED REVISIONS YESTERDAY THE WHITE HOUSE MOST RECENTLY HAD DISCUSSED A PLAN CALLING FOR 36 BILLION LARGELY FOR PUBLIC WORKS THAT WAS LESS THAN A FIFTH OF WHAT MR CLINTON FIRST PROPOSED AS PART OF HIS ECONOMICSTIMULUS BILL THIS SPRING THE 900 MILLION PACKAGE WOULD PRESERVE 300 MILLION FOR SUMMER JOBS AND 200 MILLION TO HELP STATE AND LOCAL GOVERNMENTS HIRE POLICE OFFICERS THE SOLE PUBLICWORKS ELEMENT WOULD BE 400 MILLION FOR WASTEWATER TREATMENT GRANTS BY THE ENVIRONMENTAL PROTECTION AGENCY THE EPA IS ANXIOUS FOR THESE FUNDS SINCE THE UNDERLYING PROGRAM IS SLATED FOR WHOLESALE CHANGES UNDER THE PRESIDENT'S BUDGET FOR THE FISCAL YEAR BEGINNING OCT 1 BUT POLITICALLY THE MOST SENSITIVE ELEMENT INVOLVES SUMMER JOBS WITHOUT SOME SUPPLEMENTAL APPROPRIATIONS FOR THIS ACCOUNT SUMMERJOBS SPENDING THIS YEAR COULD FALL BELOW LAST YEAR WHEN REPUBLICANS HELD THE WHITE HOUSE ABOUT 682 MILLION ALREADY HAS BEEN APPROPRIATED FOR SUMMER JOBS IN THE YEAR ENDING SEPT 30 AND AN ADDITIONAL 170 MILLION IS EXPECTED TO BE AVAILABLE FROM FUNDS THAT WENT UNSPENT LAST YEAR BUT MORE THAN 1 BILLION IS ESTIMATED TO HAVE BEEN SPENT ON SUMMER JOBS LAST YEAR WHEN CONGRESS BEEFED UP THE PROGRAM IN THE AFTERMATH OF THE LOS ANGELES RIOTS DEMOCRATS RISK CRITICISM FROM CORE URBAN CONSTITUENCIES IF THEY FAIL TO MATCH THIS RECORD YET AMID THE PRESSURE TO MEET THESE NEEDS THE APPROPRIATIONS COMMITTEE LEADERSHIP IS STRUGGLING TO STRETCH ITS ALLOTTED FUNDS TO COVER THE PRESIDENT'S AMBITIOUS INVESTMENT INITIATIVES FOR THE NEW FISCAL YEAR BEGINNING OCT 1 DEFENSE SPENDING IS CERTAIN TO BE PARED BACK BELOW WHAT MR CLINTON HAS REQUESTED AND ANTICIPATED CONGRESSIONAL CUTS IN FOREIGN AID ARE COMPOUNDING THE PROBLEMS FACING THE ADMINISTRATION'S RUSSIANASSISTANCE PACKAGE TRADITIONALLY THE APPROPRIATIONS COMMITTEES HAVE RESENTED THE NOTION OF ACROSSTHEBOARD SPENDING CUTS PARTICULARLY WHEN SUGGESTED BY OUTSIDERS AND THE ADMINISTRATION'S JOBS PLAN SUFFERS BECAUSE THE PROPOSED ACROSSTHEBOARD CUT ONLY ADDS TO THE ANXIETIES OF RANKANDFILE MEMBERS WORRIED ABOUT SAVING THEIR FAVORITE PROGRAMS THE 183 BILLION SUPPLEMENTAL SPENDING BILL TO BE TAKEN UP TODAY BY THE HOUSE APPROPRIATIONS PANEL WOULD ALLOCATE 12 BILLION IN NEW MILITARY SPENDING WITHOUT MEETING WHITE HOUSE DEMANDS FOR OFFSETTING CUTS IN PENTAGON ACCOUNTS SMALLER BUT STILL SENSITIVE ITEMS IN THE BILL INCLUDE 181 MILLION TO FINANCE MORE THAN 33 BILLION IN SMALL BUSINESS ADMINISTRATION LOAN GUARANTEES AND 160 MILLION TO COVER PART OF A SHORTFALL IN FUNDS FOR PELL GRANTS TO LOWINCOME COLLEGE STUDENTS 9305130013 930513 MARKETING & MEDIA PHILIPS ELECTRONICS MATSUSHITA TO BEGIN SELLING PORTABLE DIGITAL AUDIO PLAYERS BY DAVID P HAMILTON AND MARTIN DU BOIS STAFF REPORTERS OF THE WALL STREET JOURNAL PHILIPS ELECTRONICS NV AND MATSUSHITA ELECTRIC INDUSTRIAL CO ANNOUNCED PLANS TO SELL PORTABLE MODELS OF THEIR DIGITAL COMPACT CASSETTE PLAYER THUS ENTERING THE NEXT BATTLE IN THE GLOBAL WAR FOR DIGITAL AUDIO SYSTEMS THE LONGEXPECTED INTRODUCTION OF PORTABLE DCC MACHINES SET TO START NEXT MONTH FINALLY PUTS THE DUTCH AND JAPANESE PARTNERS ON THE OFFENSIVE AGAINST SONY CORP WHICH HAS OFFERED PORTABLE VERSIONS OF ITS DIGITAL MINIDISC PLAYER SINCE NOVEMBER BUT SOME ANALYSTS BELIEVE THE PHILIPS AND MATSUSHITA MACHINES MAY BE TOO LATE TO DO THE COMPANIES AND THE DCC FORMAT ITSELF MUCH GOOD I THINK THEY WILL BE A FLOP SAID CHUCK GOTO AN ANALYST WITH SG WARBURG JAPAN INC TAPES ARE DEAD THE WORLD HAS GONE TO DISKS ALREADY THAT MAY BE TRUE IN JAPAN SAID ELECTRONICS ANALYSTS IN EUROPE THE PERSPECTIVE FROM EUROPE IS MORE CAUTIOUS I FIND IT VERY HARD TO SAY RIGHT NOW WHO'S GOING TO WIN SAID JOOST VAN BEEK AT PIERSON HELDRING & PIERSON AMSTERDAM THE CONSUMER HASN'T YET MADE UP HIS MIND INDEED DCC DOES HAVE ITS STRONG POINTS SOFTWARE IS MORE WIDELY AVAILABLE AND BUYERS CAN PLAY THEIR OLD TAPES ON THE NEW MACHINES DISKS HOWEVER ARE PERCEIVED AS MORE MODERN BY CONSUMERS PHILIPS WHICH DEVELOPED DCC WITH MATSUSHITA'S HELP AND SONY ARE PUSHING THEIR DIGITAL RECORDING TECHNOLOGIES AS THE HIGHTECH SUCCESSORS TO CONVENTIONAL ANALOG CASSETTE TAPES BOTH DCC AND MINIDISC PLAYERS PROMISE THE CLEAR HISSFREE PLAYBACK OF COMPACT DISKS BUT DCC PLAYERS ARE ABLE TO PLAY BOTH DIGITAL AND CONVENTIONAL CASSETTE TAPES WHILE MINIDISC PLAYS A RECORDABLE 25INCH CD SO FAR SONY APPEARS TO HAVE THE EDGE IN THE WAR BETWEEN THE TWO FORMATS JEANCHARLES HUGE A SALESMAN AT THE FNAC HIFI STORE IN BRUSSELS SAYS HE SELLS MORE SONY MINIDISC PLAYERS THAN PHILIPS DCC MACHINES ALTHOUGH BOTH ARE PRICED AT ABOUT 27000 BELGIAN FRANCS A LITTLE UNDER 820 FOR A MIDRANGE MODEL SONY SAID IT SHIPPED 190000 MINIDISC PLAYERS BETWEEN LAST NOVEMBER AND THE END OF MARCH IT OFFERS FIVE DIFFERENT VERSIONS OF THE MINIDISC AT PRICES RANGING FROM 59800 YEN 536 FOR ITS PLAYBACKONLY PORTABLE MODEL TO 100000 YEN FOR A CARSTEREO MODEL SHARP CORP AND SANYO ELECTRIC CO ALSO STARTED SELLING PORTABLE MINIDISC PLAYERS EARLIER THIS YEAR PHILIPS AND MATSUSHITA NOW OFFER ONLY A LARGE HOMESTEREO DCC DECK WHICH MATSUSHITA SELLS IN JAPAN FOR 135000 YEN MATSUSHITA REPORTED SHIPPING ONLY 13000 UNITS WORLDWIDE SINCE THE PRODUCT'S INTRODUCTION LAST SEPTEMBER PHILIPS OFFICIALS DECLINED TO SAY HOW MANY OF THEIR MACHINES HAVE BEEN SOLD TO DISTRIBUTORS BUT THE NUMBER IS FAR HIGHER THAN 13000 AND MUCH CLOSER TO THE FIGURES CITED BY SONY SAID A SPOKESWOMAN MATSUSHITA SAID IT WILL START SELLING ITS PORTABLE DCC PLAYER IN JAPAN ON JUNE 10 FOR 59800 YEN THE SAME PRICE AS SONY'S PLAYBACKONLY PORTABLE MODEL PHILIPS WILL LAUNCH ITS PORTABLE DCC PLAYER ON JUNE 15 IN JAPAN FOR 60000 YEN THE MACHINES WILL LAND IN US STORES IN AUGUST AND IN FRANCE AND GERMANY NEXT MONTH PHILIPS SAID IT WOULD OFFER A PORTABLE DCC RECORDER SOMETIME NEXT YEAR PHILIPS AND MATSUSHITA ALSO SAID THEY WOULD RELEASE CARSTEREO DCC PLAYERS THIS SUMMER MATSUSHITA WILL SHIP ITS MODEL ON JUNE 1 IN JAPAN WITH EXPORTS TO THE US SCHEDULED FOR NEXT FALL AND TO EUROPE BY THE END OF THE YEAR MATSUSHITA'S SUGGESTED RETAIL PRICE IS 120000 YEN OR 20000 YEN MORE THAN SONY'S CARSTEREO MINIDISC PHILIPS PLANS TO FOLLOW WITH A LAUNCH IN EUROPE IN THE SECOND HALF OF THIS YEAR 9305130012 930513 CAESARS WORLD INC SIGNS PURCHASE OPTION FOR CASINO RESORT LOS ANGELES CAESARS WORLD INC SEEKING TO EXPAND INTO GAMBLING MARKETS THAT WOULD CAPITALIZE ON ITS HIGHEND IMAGE SIGNED A PRELIMINARY MANAGEMENT AGREEMENT AND PURCHASE OPTION FOR THE PARADISE ISLAND CASINO AND RESORT AND RELATED ASSETS IN THE BAHAMAS THE CASINO OPERATOR SAID IT SIGNED A LETTER OF INTENT WITH FIDELITY MANAGEMENT CORP TO MANAGE THE PROPERTY FOR 10 YEARS WITH OPTIONS THAT COULD EXTEND TO 30 YEARS CAESARS WOULD HAVE A THREEYEAR OPTION TO BUY THE RESORT AT PRICES FROM 185 MILLION THE FIRST YEAR TO 225 MILLION THE THIRD YEAR PEOPLE FAMILIAR WITH THE AGREEMENT SAID RESORTS INTERNATIONAL INC OF ATLANTIC CITY NJ OWNS THE PARADISE ISLAND CASINO RESORTS HAS AGREED TO A DEBT REORGANIZATION THAT WOULD TURN THE BAHAMAS RESORT OVER TO BONDHOLDERS THE LARGEST OF WHICH ARE PUBLIC AND PRIVATE FUNDS MANAGED BY FIDELITY THOSE FUNDS INCLUDING FIDELITY'S CAPITAL AND INCOME FUND AND THE BELMONT FUND HOLD ABOUT 150 MILLION IN RESORTS BONDS WALL STREET OBSERVERS NOTED THAT IT IS UNUSUAL FOR SUCH FUNDS TO OWN CASINOS OR SIMILAR ASSETS THE MANAGEMENT AGREEMENT WOULD GIVE CAESARS 3 OF THE GROSS REVENUE FROM THE BAHAMAS ASSETS PLUS AN INCENTIVE FEE BASED ON PERFORMANCE THE PROPERTY INCLUDES A 1186ROOM RESORT WITH 30000 SQUARE FEET OF CASINO SPACE AS WELL AS UNDEVELOPED LAND GOLF AND TENNIS FACILITIES AN AIRPORT AND OTHER FACILITIES THE AGREEMENT IS SUBJECT TO SEVERAL CONDITIONS INCLUDING BANKRUPTCY COURT APPROVAL OF THE RESORTS REORGANIZATION THAT COULD BE COMPLETED BY EARLY FALL IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CAESARS WORLD SHARES CLOSED AT 46625 UP 1375 9305130011 930513 LEISURE & ARTS BOOKSHELF KEYS TO A REGION'S TORMENT BY JOHN H FUND AS THE BALKANS SPIRAL INTO MADNESS FOR THE THIRD TIME IN THIS CENTURY ONE TURNS TO THE REGION'S TURBULENT PAST FOR GUIDANCE ON ITS TORMENTED PRESENT IN BALKAN GHOSTS A JOURNEY THROUGH HISTORY ST MARTIN'S 307 PAGES 2295 ROBERT D KAPLAN FINDS A GOOD EXPLANATION EACH NATION DEMANDS THAT ITS BORDERS REVERT TO WHERE THEY WERE AT THE EXACT TIME WHEN ITS OWN EMPIRE HAD REACHED ITS ZENITH OF ANCIENT MEDIEVAL EXPANSION THUS SERBIAN NATIONALISTS HOLD SACRED THE SITE OF THEIR 1389 DEFEAT IN KOSOVO WHICH CONSIGNED THEM TO 500 YEARS OF TURKISH DOMINATION OF COURSE 90 OF KOSOVO'S PEOPLE ARE ALBANIAN TODAY BUT EVEN CULTURED SERBS TURN BEET RED AT ANY SUGGESTION OF ALBANIAN SELFRULE BALKAN GHOSTS WAS DIRECTLY INSPIRED BY REBECCA WEST'S BLACK LAMB AND GRAY FALCON AN EPIC PORTRAIT OF YUGOSLAVIA IN THE 1930S THAT MR KAPLAN OFTEN INVOKES ADMIRINGLY THOUGH HE CAN'T MATCH WEST'S IDIOSYNCRATIC YET SHARPLY FOCUSED BLEND OF TRAVEL WRITING AND HISTORICAL DISCOURSE READERS WHO WANT A QUICK FIX ON HOW ONE OF THE LEAST OPPRESSIVE COMMUNIST NATIONS COLLAPSED SO QUICKLY INTO AN INFERNO WILL BE FRUSTRATED BY HIS RAMBLING IMPRESSIONISTIC STYLE AND THE OCCASIONAL LACK OF RIGOROUS EDITING NONETHELESS FOR THE PATIENT BALKAN GHOSTS IS AN OFTEN REWARDING ODYSSEY FILLED WITH VIVID WRITING AFTER AN ENDLESS YUGOSLAVIAN RAIL JOURNEY MR KAPLAN OBSERVES THAT THE NATION'S COMMUNISTS PRACTICED FASCISM WITHOUT FASCISM'S ABILITY TO MAKE THE TRAINS RUN ON TIME ROMANIA WAS PEOPLED BY SUFFERING AND PASSIONATE FIGURES WHOSE MINDS WERE DISTORTED BY THEIR OWN RAGE AND BELIEF IN WILD HALFTRUTHS AND CONSPIRACIES HE WRITES AFTER SEVERAL SURREALISTIC CONVERSATIONS THERE MR KAPLAN A WRITER FOR THE ATLANTIC MAGAZINE WHO LIVED AND TRAVELED IN THE BALKANS FOR 10 YEARS IS AT HIS BEST IN HIS STRIKING PORTRAYALS OF PEOPLE HE MET SHORTLY AFTER THE FALL OF CEAUCESCU HE TOOK AN ARDUOUS JOURNEY ON A ROTTING BARGE FILLED WITH DRUNKEN GYPSIES TO A ROMANIAN BACKWATER WHERE THE TOWN ELDERS DISCUSSED WORLD POLITICS OVER DINNER AT THE MENTION OF RONALD REAGAN'S NAME ALL STOPPED EATING AND NODDED THEIR HEADS IN A SORT OF APPROVING BENEDICTION THE TOWN'S DOCTOR EXPLAINED THE EVIL EMPIRE' I REMEMBER HEARING REAGAN'S SPEECH ON THE VOA ROMANIAN BROADCAST HE WAS THE ONLY ONE OF YOUR PRESIDENTS TO SPEAK THE TRUTH BUT THIS BUSH AH JUST ANOTHER ROOSEVELT IN GREECE MR KAPLAN DESCRIBES HOW THE COUNTRY COLLAPSED INTO CHAOS DURING THE '80S RULE OF ANDREAS PAPANDREOU A FORMER BERKELEY ECONOMIST WHO RETURNED TO GREECE TO LEAD A THUGGISH ANTIAMERICAN REGIME MR KAPLAN ONCE MET THE PRIME MINISTER AT A HOTEL POOL HIS COMPANIONS WERE BODYGUARDS WHO CARRIED ASSAULT RIFLES AND WORE TIGHTFITTING BELLBOTTOMS AND WHITE SHIRTS OPEN TO THE NAVEL IT WAS LIKE SHAKING HANDS WITH AN UNDERWORLD CELEBRITY AT THE BALLPARK IN MACEDONIA A PROJECTION IN MINIATURE OF EVERY BALKAN CONFLICT HE FOUND FANATICAL NATIONALISTS WHO PRACTICALLY SPIT AT THE VERY MENTION OF ANOTHER ETHNIC GROUP EVERYONE BEGAN A CONVERSATION WITH A LENGTHY RECOUNTING OF THE HISTORICAL GRIEVANCES AND DEMANDS OF HIS GROUP YOU MUST HAVE PATIENCE YOUNG MAN IT IS A LONG STORY SAID A STERN ORTHODOX PRIEST WHEN MR KAPLAN POINTED OUT A HISTORICAL ERROR IN HIS DISCOURSE HE WAS CUT OFF YOU DO NOT UNDERSTAND THE MATERIAL IS SO IMMENSE SO VAST YOU WILL NEED YEARS OF STUDY TO COMPREHEND OUR PROBLEM A REFRESHING CONTRAST IS MILOVAN DJILAS THE FORMER YUGOSLAV VICE PRESIDENT WHO BROKE WITH TITO WENT TO PRISON AND WROTE WITHERING CRITIQUES OF COMMUNISM'S NEW CLASS OF PARTYSPAWNED ARISTOCRATS MR KAPLAN WRITES THAT MR DJILAS WAS A VALUABLE SOURCE BECAUSE HE WAS ALWAYS RIGHT HE COULD PREDICT THE FUTURE HE DID THIS BY IGNORING DAILY NEWSPAPERS AND FOCUSING ON HISTORY THE PRESENT FOR HIM WAS MERELY A STAGE OF THE PAST MOVING QUICKLY INTO THE FUTURE WHAT APPEARED INCONCEIVABLE TO CONVENTIONAL ANALYSTS WAS ALWAYS THE NATURAL OUTCOME TO HIM BUT EVEN MR DJILAS MIGHT HAVE DIFFICULTY PREDICTING THE LIKELY OUTCOME OF THE CURRENT BALKAN CONFLICT DURING A JOURNEY OF MY OWN THROUGH THE REGION LAST YEAR I ENCOUNTERED AN ELDERLY ALBANIAN PROFESSOR WHO SHRUGGED WHEN I ASKED HIM THE CAUSES OF THE REGION'S CONSTANT STATE OF UNHAPPINESS AH THE BALKANS HE SIGHED A REGION WHICH HAS PRODUCED FAR MORE HISTORY THAN WE CAN POSSIBLY CONSUME WESTERN NATIONS WHO INTERVENE MILITARILY MAY ULTIMATELY NOT BE ABLE TO DIGEST WHAT THEY FIND EITHER THE HUMAN DIMENSIONS OF THE BALKAN TRAGEDY ARE EXPLORED BY SLAVENKA DRAKULIC A CROATIAN IN THE BALKAN EXPRESS DISPATCHES FROM THE OTHER WAR NORTON 208 PAGES 1995 MS DRAKULIC PAINTS A HORRIFIC PICTURE OF HOW THE MORAL COMPASS OF MANY CIVILIZED PEOPLE WAS DISTORTED BY 45 YEARS OF COMMUNISM IN YUGOSLAVIA IT MADE THEM WITHDRAW INTO A NATIONALISTIC BLIND ALLEY SHE SAYS SO THAT WHEN COMMUNISM FELL A SOCIETY BASED ON INDIVIDUAL RIGHTS WASN'T EVEN PART OF THEIR VISION FERVENT NATIONALISM HAS BECOME THEIR POLITICAL IDENTITY AND TURNED INTO SOMETHING LIKE AN ILLFITTING SHIRT YOU MAY FEEL THE SLEEVES ARE TOO SHORT THE COLLAR TOO TIGHT YOU MAY NOT LIKE THE COLOR AND THE CLOTH MIGHT ITCH BUT THERE IS NOTHING ELSE TO WEAR MR FUND IS A JOURNAL EDITORIAL WRITER 9305130010 930513 COURT NAMES TRUSTEE TO SELL REALTY SEIZED FROM EXGM DEALER NEW YORK A SPECIAL COURTAPPOINTED TRUSTEE WILL SUPERVISE A SEALEDBID SALE OF 200 MILLION IN REAL ESTATE SEIZED FROM FORMER GENERAL MOTORS CORP DEALER JOHN MCNAMARA WHO WAS CHARGED WITH DEFRAUDING GM OF HUNDREDS OF MILLIONS OF DOLLARS DOMINIC DINAPOLI A PRICE WATERHOUSE PARTNER APPOINTED BY US DISTRICT COURT IN BROOKLYN NY AS THE TRUSTEE WILL SUPERVISE THE SALE OF THE 62 PROPERTIES THAT WERE SEIZED FROM MR MCNAMARA UNDER FEDERAL FORFEITURE LAW HE NAMED REAL ESTATE FIRM LASALLE PARTNERS AND NATIONAL REAL ESTATE CLEARINGHOUSE INC TO ASSIST IN THE SALE THE PROPERTIES ARE ON LONG ISLAND IN NEW YORK AND IN FLORIDA AND MARYLAND AND WILL BE SOLD INDIVIDUALLY BIDS ARE DUE IN JULY AS PREVIOUSLY REPORTED MR MCNAMARA PLEADED GUILTY LAST SEPTEMBER TO FEDERAL RACKETEERING CHARGES THAT HE DEFRAUDED GENERAL MOTORS ACCEPTANCE CORP THE GM FINANCE UNIT IN A 6 BILLION SCHEME OVER SEVEN YEARS MR MCNAMARA WHO OPERATED A GM DEALERSHIP IN SUFFOLK COUNTY NY BORROWED MORE THAN 6 BILLION TO FINANCE VEHICLES THAT NEVER EXISTED THE FRAUD CAUSED AN INTERNAL INVESTIGATION OF GM ACCEPTANCE AND A SWEEPING SHAKEUP OF THE UNIT'S MANAGEMENT 9305130008 930513 INTERNATIONAL SERB BLOCKADE OF BOSNIA IS BARELY A BUMP BELGRADE VOWS TO CUT OFF SUPPLIES USED IN WAR BUT TRUCKS MOVE FREELY BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL RACA YUGOSLAVIA THE GATEKEEPER TO BOSNIAHERZEGOVINA SITS ON THE PORCH OF THE HOLIDAY CAFE PLAYING CHESS AND HOISTING A MUG OF BEER THE BEEFY SERBIAN CUSTOMS OFFICER IS SUPPOSED TO BE ENFORCING A BLOCKADE DENYING THE SERBS IN BOSNIA THE FUEL AND MATERIAL NECESSARY TO CARRY ON THE WAR THAT HAS OUTRAGED THE WORLD OCCASIONALLY HE STIRS FROM HIS GAME TO SCAN FREIGHT DOCUMENTS PRESENTED BY HARRIED TRUCKERS AFTER A MINUTE OR TWO HE RETURNS TO HIS CHESS BOARD AND THE TRAFFIC ROLLS ON UNIMPEDED US AND EUROPEAN LEADERS BADLY DIVIDED ON WHETHER TO INTERVENE MILITARILY TO STOP THE WAR HOPE THE SERB BLOCKADE WILL STRANGLE THE BOSNIAN SERBS INTO SUBMISSION AND ACCEPTANCE OF A UNITED NATIONS PEACE PLAN BUT A VISIT TO RACA INDICATES IT IS A FALSE HOPE DESPITE THE PLEDGE BY SERB PRESIDENT SLOBODAN MILOSEVIC TO CUT OFF HIS FELLOW SERBS IN BOSNIA FROM EVERYTHING BUT FOOD AND MEDICINE GOODS MOVE FREELY THROUGH THIS BUCOLIC BORDER POST OIL TANKERS TIMBER TRUCKS AND CATTLE VANS ALL PASS WITH ONLY CURSORY CHECKS FROM A SWARM OF SERBIAN POLICEMEN DURING AN HOUR OF OBSERVATION NONE OF THE SEVERAL OIL TANKERS PASSING THROUGH WERE INSPECTED TO DETERMINE IF THEY WERE FULL OR EMPTY ONLY ONCE DID A POLICEMAN OPEN THE CANVAS FLAPS OF A TRUCK TO CHECK THE CONTENTS OF THE DOZENS OF TRUCKS JUST A FEW WERE ORDERED TO PULL OVER WHILE PAPERS WERE CHECKED NONE WERE TURNED BACK THE CUSTOMS OFFICERS AND POLICEMEN REFUSED TO DISCUSS THE BLOCKADE OR THEIR ENFORCEMENT EFFORTS BECAUSE OF THEIR CONCERN OVER THE LEAKY BORDER MEMBERS OF THE UN SECURITY COUNCIL ARE CONSIDERING A RUSSIAN DRAFT RESOLUTION TO PUT ABOUT 500 INTERNATIONAL MONITORS AT THE 48 CROSSING POINTS BETWEEN BOSNIA AND RUMP YUGOSLAVIA WHICH CONSISTS OF THE FORMER YUGOSLAV REPUBLICS OF SERBIA AND MONTENEGRO IN NORTHERN BOSNIA ALONG THE CORRIDOR THAT CONNECTS VARIOUS POCKETS OF SERBIAN CONQUEST GAS AT PRIVATELY OWNED SERVICE STATIONS IS MORE ABUNDANT THAN IN BELGRADE THE CAPITAL OF YUGOSLAVIA AND IT IS CHEAPER TOO COSTING ABOUT 1 A LITER COMPARED WITH NEARLY 2 IN BELGRADE AT ONE GAS STATION JUST NORTH OF BIJELJINA FOUR FULL TANKERS WAITED TO BE DRAINED TANKERS BEARING LICENSE PLATES OF VARIOUS BOSNIAN CITIES AS WELL AS PLATES OF KNIN THE CAPITAL OF SERBOCCUPIED CROATIA PLIED THE BOSNIAN ROADS AFTER COMING FROM SERBIA MR MILOSEVIC ORDERED THE BLOCKADE LAST WEEK AFTER THE BOSNIAN SERB PARLIAMENT REJECTED HIS PLEAS TO ACCEPT THE UN PEACE PLAN IN ADDITION MR MILOSEVIC IS UNDER THREAT OF HARSH SANCTIONS BEING IMPOSED ON SERBIA BY AN INTERNATIONAL COMMUNITY THAT BLAMES HIM FOR INSTIGATING THE WAR INFLATION IN SERBIA CLIMBS BY 6 A DAY FEW FACTORIES ARE OPERATING BY SQUEEZING THE BOSNIAN SERBS MR MILOSEVIC IS HOPING TO ESCAPE HIS OWN SANCTIONS NOOSE BUT THE FREE FLOW OF TRAFFIC AT RACA REVEALS THAT IN REALITY HE ISN'T SQUEEZING VERY HARD AT ALL RATHER THAN CHOKING THE BOSNIAN SERBS ARE AS DEFIANT AS EVER ON THE EVE OF THIS WEEKEND'S REFERENDUM ON THE UN PEACE PLAN AFTER ENCOURAGING AND EVEN SUPPLYING SERB CAMPAIGNS AGAINST BOSNIA'S MUSLIMS FOR THE PAST YEAR HIS RHETORICAL COMMITMENT TO CUT OFF HIS FELLOW SERBS IN BOSNIA WON MR MILOSEVIC TIMID PRAISE IN THE WEST BUT SCORN AND SUSPICION AT HOME WE'VE GOT EVERYTHING WE NEED SAYS PANO TESIC A BOSNIAN SERB FARMER WHO TILLS THE FIELDS JUST BEYOND RACA WE DON'T GIVE A DAMN ABOUT THE SERBIAN PRESIDENT IN A SMALL VILLAGE JUST SOUTH OF BIJELJINA MIHAILO MALETIC CURSES ALL POLITICIANS AND SAYS RIGHT NOW WE'RE ALONE IN THIS WAR HIS SISTER DRAGICA RISES IN DEFIANCE WE DON'T NEED POLITICIANS WE DON'T CARE ABOUT THEM SHE SAYS IF WE HAVE TO WE WILL EAT ONLY BREAD FOR FIVE YEARS WE WILL SURVIVE AT RACA A DECAL OF THE FOUR CYRILLIC LETTERS THAT FORM THE SYMBOL OF THE BOSNIAN SERBS' BATTLE CRY ONLY UNITY SAVES THE SERBS IS PLASTERED ON A WINDOW OF THE CUSTOMS HOUSE YOU'RE TRYING TO SCREW US CRIES A BOSNIAN SERB TRUCKER TO A SERB POLICEMAN INSPECTING HIS DOCUMENTS AT THE HOLIDAY CAFE WE'RE THE ONES WHO HAVE BEEN SUFFERING UNDER SANCTIONS NOT YOU THE SERB SPITS BACK WE HELPED YOU WHEN YOU WERE IN TROUBLE IN KOSOVO THE TRUCKER INSISTS WHEN YOU WERE HAVING PROBLEMS WITH THE ALBANIANS WE CAME TO YOUR SUPPORT THE ARGUMENT ENDS THE BOSNIAN SERB FINISHES HIS BEER THE SERB POLICEMAN LETS HIM DRIVE ON 9305130007 930513 LAW LEGAL BEAT MISSISSIPPI JUDGE'S RULING GIVES LIMITED BOOST TO CIGARETTE SUITS BY JUNDA WOO AND EBEN SHAPIRO STAFF REPORTERS OF THE WALL STREET JOURNAL DECLARING CIGARETTES DEFECTIVE AND UNREASONABLY DANGEROUS A MISSISSIPPI JUDGE MADE IT MUCH EASIER FOR SMOKERS TO WIN LAWSUITS AGAINST TOBACCO COMPANIES AT LEAST IN HIS STATE COURTROOM THE RULING APPARENTLY THE FIRST IN THE NATION TO FIND THAT CIGARETTE COMPANIES ARE STRICTLY LIABLE FOR ILLNESSES CAUSED BY SMOKING WAS DISMISSED BY ANALYSTS AND TOBACCOINDUSTRY LAWYERS AS AN ABERRATION THAT WOULDN'T SURVIVE APPEALS EVEN IF IT DID TOBACCO COMPANIES STILL WOULD BE PROTECTED IN ABOUT A DOZEN STATES BY LAWS SPECIFICALLY PROHIBITING STRICTLIABILITY CLAIMS SUCH A LAW TAKES EFFECT IN MISSISSIPPI IN JULY 1994 BUT THE DECISION WAS JARRING ENOUGH TO BUMP TOBACCOCOMPANY STOCKS DOWN A BIT AS ANALYSTS READ FAXED COPIES OF THE STRONGLY WORDED OPINION BY WASHINGTON COUNTY CIRCUIT COURT JUDGE EUGENE BOGEN IN GREENVILLE MISS CIGARETTES ARE THE MOST LETHAL PRODUCT WHICH MAY BE LEGALLY SOLD IN THIS COUNTRY WROTE JUDGE BOGEN IN A CASE BROUGHT BY THE FAMILY OF A DECEASED SMOKER AGAINST AMERICAN TOBACCO CO CIGARETTES ARE DEFECTIVE BECAUSE WHEN USED AS INTENDED THEY CAUSE CANCER EMPHYSEMA HEART DISEASE AND OTHER ILLNESSES UNDER HIS RULING PEOPLE SUING TOBACCO COMPANIES HAVE TO PROVE ONLY THAT CIGARETTES CAUSED THEIR INJURY AND TO BACK UP THE AMOUNT OF DAMAGES THEY ARE SEEKING A SMOKER DOESN'T HAVE TO PROVE THAT THE TOBACCO COMPANY WAS IN ANY WAY NEGLIGENT IN ADDITION THE SMOKER COMPLETELY AVOIDS THE ISSUE THAT HAS DERAILED SO MANY OTHER CASES WHETHER HE OR SHE HAD BEEN AWARE OF THE DANGERS OF SMOKING AS A RESULT OF THIS LEGAL RULING THE JUDGE REFUSED TO ALLOW AMERICAN TOBACCO TO CONTEND THAT THE DECEASED SMOKER ANDERSON SMITH WAS PARTLY TO BLAME FOR HIS INJURIES PLAINTIFFS' DECEDENT DID WITH PALL MALL CIGARETTES WHAT DEFENDANTS INTENDED BE DONE THE COURT SAID HE SMOKED THEM RELATIVES OF MR SMITH WHO DIED OF LUNG CANCER IN FEBRUARY 1986 AFTER SMOKING HEAVILY FOR 45 YEARS BROUGHT THE SUIT SIX YEARS AGO THE DECISION CAME IN A PRETRIAL RULING WITH THE TRIAL NOW SET FOR NEXT MONTH IT'S JUST OPENED THE TELLER WINDOW AT LEAST IN MISSISSIPPI SAID MARC Z EDELL A SHORT HILLS NJ ANTITOBACCO LAWYER WHO WASN'T INVOLVED IN THE CASE IT'S EXTREMELY SIGNIFICANT BUT VICTOR SCHWARTZ A LEGAL CONSULTANT IN WASHINGTON FOR THE TOBACCO INDUSTRY CALLED THE RULING SO FAR OUT OF THE MAINSTREAM THAT IT HAS NO PRECEDENTIAL VALUE HE ADDED THAT THE JUDGE OVERSTEPPED HIS AUTHORITY BY MAKING FINDINGS OF FACT ABOUT THE DANGERS OF SMOKING THAT SHOULD HAVE BEEN LEFT TO A JURY SIMILARLY REBECCA BARFIELD A TOBACCO ANALYST WITH FIRST BOSTON CORP CALLED THE OPINION OUT OF LEFT FIELD SHE SAID IT WILL HAVE LITTLE LONGTERM IMPACT ON TOBACCO LITIGATION AMERICAN TOBACCO CO A UNIT OF AMERICAN BRANDS INC OLD GREENWICH CONN SAID IT WILL APPEAL IMMEDIATELY AND SEEK A RULING BEFORE THE CASE PROCEEDS TO TRIAL A DISTRIBUTOR IN GREENWOOD MISS NEW DEAL TOBACCO & CANDY CO IS A CODEFENDANT FOR MANY YEARS COURTS DIDN'T ALLOW STRICTLIABILITY CLAIMS IN CIGARETTE LAWSUITS BECAUSE AN INFLUENTIAL LEGAL TEXT LISTS CIGARETTES ALONG WITH BUTTER AND LIQUOR AS A PRODUCT THAT CANNOT BE REDESIGNED IN A SAFER WAY IN 1990 AND 1991 HOWEVER STATE SUPREME COURTS IN NEW JERSEY AND LOUISIANA SAID JURIES COULD FIND SUCH LIABILITY BUT UNLIKE IN THE MISSISSIPPI CASE THE COURTS DIDN'T FIND A DESIGN DEFECT TRIGGERING THAT LIABILITY THE SOCALLED CIPOLLONE DECISION BY THE US SUPREME COURT LAST JUNE DIDN'T ADDRESS STRICT LIABILITY AT ALL THE HIGH COURT SAID IN ESSENCE THAT THE FEDERAL LAW MANDATING CIGARETTEPACK WARNINGS PRECLUDED SMOKERS FROM SUING TOBACCO COMPANIES FOR WHAT LAWYERS CALL FAILURE TO WARN OF A HEALTH HAZARD THE SUPREME COURT SAID SMOKERS WHO GOT SICK COULD STILL ARGUE THAT TOBACCO COMPANIES FRAUDULENTLY MISREPRESENTED OR SUPPRESSED THE RISKS OF SMOKING AFTER THE STATE SUPREME COURT RULINGS IN NEW JERSEY AND LOUISIANA THE LEGISLATURE IN BOTH STATES PASSED LAWS BARRING MANY STRICTLIABILITY CLAIMS STATES IN WHICH SIMILAR LAWS EXIST INCLUDE CALIFORNIA OHIO WASHINGTON TEXAS AND MISSISSIPPI HOWEVER THE MISSISSIPPI CASE WAS UNAFFECTED BY THE LEGISLATION BECAUSE THAT STATE'S LAW DOESN'T TAKE EFFECT UNTIL THE MIDDLE OF NEXT YEAR IN THE INTERIM OTHER PLAINTIFFS CAN STILL FILE STRICTLIABILITY LAWSUITS THE TEXAS LAW TAKES EFFECT IN SEPTEMBER IN AN UP MARKET TOBACCO STOCKS CLOSED DOWN ON THE NEWS OF THE RULING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AMERICAN BRANDS FELL 25 CENTS TO 32 PHILIP MORRIS COS FELL 150 TO 50 AND RJR NABISCO HOLDINGS CORP CLOSED OFF 125 CENTS AT 5875 SNUFF MAKER UST INC LOST 75 CENTS CLOSING AT 30125 IVAN F BOESKY CHARACTERIZED SOME OF HIS STOCK TRADING AS ILLEGAL BUT NOT IMMORAL IN A TENSE EXCHANGE WITH THE LAWYER FOR HIS FORMER WIFE AS THE BOESKY DIVORCE TRIAL CONTINUED I THINK I'M A VERY MORAL PERSON MR BOESKY TOLD EDWARD BRODSKY THE ATTORNEY WHO REPRESENTS SEEMA BOESKY WAS TRADING ON INSIDE INFORMATION IMMORAL MR BRODSKY ASKED MR BOESKY ANSWERED IT WAS IMPROPER AND ILLEGAL I THINK IMMORAL IS THE WRONG TERM FOR THESE ACTS WAS IT CORRUPT THE LAWYER ASKED MR BOESKY'S RESPONSE I DON'T KNOW WHAT YOU MEAN BY THAT WORD THE EXCHANGE CHARACTERIZED THE DAY'S QUESTIONING BEFORE ACTING SUPREME COURT JUSTICE PHYLLIS GANGELJACOB MANHATTAN WHO MUST DECIDE WHAT IF ANY SHARE MR BOESKY IS ENTITLED TO OF THE MORE THAN 100 MILLION IN ASSETS THAT MRS BOESKY CONTROLS THE JUDGE ALREADY HAS GRANTED THE TWO A DIVORCE MRS BOESKY'S LAWYERS WANT TO SHOW THAT MR BOESKY HAD VERY LITTLE TO DO WITH THE ACCUMULATION OF HER ASSETS ARGUING THAT MUCH OF IT CAME AS A RESULT OF AN INTEREST SHE WAS GIVEN BY HER FATHER IN THE BEVERLY HILLS HOTEL AND THEY CONTEND EVEN IF MR BOESKY DESERVES SOME MONEY THE FINES HE PAID FOR INSIDER TRADING AND THE DISGRACE HE BROUGHT THE FAMILY MORE THAN WIPED OUT HIS SHARE OF THE MARITAL ASSETS MR BOESKY MAINTAINS THAT HE MADE HIS WIFE RICH HE SAYS HE PAID THE FINES AND PLEADED GUILTY TO A FELONY TO PROTECT THE FAMILY FORTUNE FROM EVEN GREATER EROSION DRESSED IN ONE OF THE DARK SUITS THAT WERE HIS TRADEMARK IN HIS WALL STREET GLORY DAYS HIS WHITE HAIR SLICKED BACK TO NEAR SHOULDER LENGTH MR BOESKY REFUSED TO ANSWER SOME OF MR BRODSKY'S QUERIES AND OFTEN SNAPPED BACK WITH QUESTIONS OF HIS OWN I'M NOT GOING TO ANSWER YOUR QUESTIONS THE WAY YOU WANT ME TO ANSWER IT SIR MR BOESKY COOLY SAID AS HE TOOK A SIP FROM A PLASTIC GLASS OF BOTTLED WATER THE EXCHANGES GOT PARTICULARLY HEATED WHEN MR BRODSKY READ PASSAGES FROM MR BOESKY'S BOOK MERGER MANIA REGARDING THE ARBITRAGER'S PLAY IN GETTY OIL STOCK IN THE BOOK MR BOESKY TELLS HIS READER THAT IT WAS A SITUATION CALLING ON ALL HIS TALENTS AS AN ARBITRAGER BUT HE DOESN'T SAY HE USED INSIDE INFORMATION SO PART OF THE SKILLS OF AN ARBITRAGER IS TRADING ON INSIDER INFORMATION MR BRODSKY ASKED OF COURSE NOT MR BOESKY RESPONDED AFTER CORRECTING MR BRODSKY'S PRONUNCIATION OF ARBITRAGEUR MR BOESKY ADDED THAT THE BOOK HE WROTE ABOUT HIS LIFE WASN'T UNTRUE ONLY INCOMPLETE ERNST & YOUNG IS CLOSING ITS LEGAL CONSULTING GROUP THE ACCOUNTING FIRM DECIDED TO ABOLISH THE UNIT WHICH HAD ADVISED LAW FIRMS AND CORPORATE LEGAL DEPARTMENTS AFTER THE CHIEF OF THE UNIT DECIDED TO LEAVE ROBERT BERKOW WHO WAS ERNST & YOUNG'S NATIONAL DIRECTOR FOR LEGAL CONSULTING RECENTLY JOINED ALLIEDSIGNAL INC MORRISTOWN NJ TO HELP RUN ITS LEGAL DEPARTMENT MR BERKOW A WELLKNOWN FIGURE IN THE LEGAL CONSULTING FIELD SAID HE WAS READY FOR A CHANGE AND WANTED TO MOVE FROM ADVISING TO DOING IT ERNST & YOUNG'S GENERAL COUNSEL CARL LIGGIO SAID THAT WHEN MR BERKOW DECIDED TO LEAVE WE DECIDED TO LET IT GO BY THE WAYSIDE YOU DON'T CONTINUE SOMETHING YOU CAN'T DO A FIRSTRATE JOB AT HE SAID THE LEGAL CONSULTING GROUP'S RANKS HAD THINNED TO 10 STAFFERS FROM ABOUT 30 IN THE EARLY 1980S OVER TIME HE ADDED MANY OF THE GROUP'S NEW YORK CONSULTANTS HAD BEEN HIRED AWAY BY MAJOR LAW FIRMS MR BERKOW SAID THE FOCUS OF THE GROUP'S CONSULTING HAD SHIFTED FROM LAW FIRMS TO LEGAL DEPARTMENTS AND FROM TECHNICAL SERVICES TO STRATEGIC PLANNING WHICH REQUIRES FEWER WORKER BEES THE DECISION DOESN'T AFFECT ERNST & YOUNG'S LITIGATION SUPPORT GROUP WHICH PROVIDES STATISTICAL RESEARCH AND OTHER ASSISTANCE TO ATTORNEYS GAMBLING IS A CRIME EVEN IF THE PROCEEDS GO TO A CHARITY A NEW JERSEY APPEALS COURT RULED THE APPEALS COURT REVERSED A TRIAL JUDGE'S DECISION TO THROW OUT THE INDICTMENT OF TWO VOLUNTEER FIREMEN ACCUSED OF INSTALLING A SLOT MACHINE AT THEIR FIREHOUSE THE LOWER COURT HAD RULED THAT SINCE THE PROCEEDS WERE USED TO RAISE MONEY FOR THE FIRE DEPARTMENT RATHER THAN PROFITING THE FIREMEN PERSONALLY THE GAMBLING LAW DIDN'T APPLY BUT THE APPEALS COURT SAID THE LOWERCOURT RULING CREATED A LOOPHOLE THAT COULD HAVE BEEN TAKEN ADVANTAGE OF BY ORGANIZED CRIME UNDER THE STATE'S LAW RUNNING AN UNAUTHORIZED GAMBLING OPERATION SUCH AS A SLOT MACHINE IS ILLEGAL AUTHORIZED CASINOS CAN INSTALL SLOT MACHINES THE MERE FACT THAT THESE GAMBLING PROCEEDS WERE ULTIMATELY DEVOTED TO A BENIGN ACTIVITY IE PICNICS AND FIREHOUSE MAINTENANCE DOESN'T DETRACT FROM THE FACT THAT AN OFFENSE WAS APPARENTLY COMMITTED THE INTERMEDIATE APPEALS COURT SAID IF WE WERE TO ACCEPT THE DEFENDANTS' POSITION SOCIAL GROUPS OR CRIMINAL SYNDICATES WITH LESS BENIGN MOTIVES COULD USE THE LOOPHOLE TO THE PUBLIC DETRIMENT STEVEN BRAUN SENIOR ASSISTANT PROSECUTOR FOR PASSAIC COUNTY SAID OTHER FUNDRAISING MEASURES WERE AVAILABLE TO THE FIRE DEPARTMENT IN WEST MILFORD THERE WERE LEGAL AVENUES THAT THE FIREMEN COULD HAVE USED TO MAKE MONEY BUT SLOT MACHINES AREN'T ONE OF THEM HE SAID ANDREW BLAIR OF CLIFTON AND JOSEPH PORTELLI OF TOTOWA ATTORNEYS FOR THE TWO FIREMEN SAID THEIR CLIENTS WERE UNFAIRLY SINGLED OUT FOR PROSECUTION THEY SAID THAT ALTHOUGH THEIR CLIENTS WERE CHIEF AND DEPUTY CHIEF OF THE VOLUNTEER FIRE DEPARTMENT THE SLOT MACHINES WERE APPROVED BY A VOTE OF ALL THE FIREFIGHTERS MR BLAIR SAID HIS CLIENT THE FIRE DEPARTMENT'S FORMER CHIEF DOESN'T PLAN TO APPEAL THE RULING MR PORTELLI SAID HIS CLIENT IS CONSIDERING AN APPEAL JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9305130006 930513 ARDENT BIDDING MARKS CHRISTIE'S SALE OF IMPRESSIONIST AND MODERN PAINTINGS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ARDENT BIDDING BUOYED CHRISTIE'S INTERNATIONAL PLC THROUGH ONE OF ITS MOST SUCCESSFUL SALES OF IMPRESSIONIST AND MODERN PAINTINGS IN YEARS ART DEALERS AND COLLECTORS BID LIKE TOURISTS WHO WOULDN'T GO HOME WITHOUT A SOUVENIR IT WAS THE FINAL EVENING SALE OF THE BIGMONEY SPRING ART AUCTIONS AND ITS RESULTS LEFT THE ART DEALER COMMUNITY RELIEVED AND INVIGORATED AFTER A NEARLY THREEYEAR SEVERE SLUMP IN THEIR BUSINESS THE SALE CAME HARD ON THE HEELS OF SOTHEBY'S NEARJUBILANT AUCTION OF IMPRESSIONIST AND MODERN PAINTINGS TUESDAY EVENING WHEN AN ANONYMOUS BIDDER PAID 286 MILLION FOR A SUPERIOR PAUL CEZANNE STILL LIFE THAT WAS THE HIGHEST PRICE PAID FOR A PAINTING AT AUCTION IN THREE YEARS AND IT FUELED ARTDEALER HOPES THAT THEIR INDUSTRY'S RECESSION WAS FINALLY HISTORY THE BIG QUESTION OF LAST EVENING WOULD THE FIERCE BIDDING FOR WORKS UNANIMOUSLY CONSIDERED THE SALE'S BEST SPILL OVER INTO DEMAND FOR THE MORE ROUTINE WORKS OF ART THAT ARE THE INDUSTRY'S BREAD AND BUTTER AND THE ANSWER WAS WITH SOME QUALIFICATIONS YES ABOUT 20 OF THE WORKS STILL SOLD BELOW THE PRICES EXPECTED BY THE AUCTION HOUSE BUT THE BIGTICKET WORKS SOLD WELL A HUGE EARLY CLAUDE MONET SEASCAPE VALUED AS A HISTORICAL BENCHMARK AS THE ARTIST'S TURN FROM REALISTIC PAINTING TOWARD IMPRESSIONISM BROUGHT 97 MILLION CHRISTIE'S PRIOR TO THE SALE HAD PREDICTED IT WOULD BRING ABOUT 5 MILLION TO ABOUT 9 MILLION IT WAS PURCHASED BY A EUROPEAN COLLECTOR WHO WASN'T IDENTIFIED THE TOTAL FOR THE SALE INCLUDING THE COMMISSION PAID TO CHRISTIE'S WAS 486 MILLION THE SALE HAD BEEN EXPECTED TO RAISE ABOUT 45 MILLION TO 59 MILLION OF THE 60 ARTWORKS ON THE AUCTION BLOCK 12 OR A MODEST 20 FAILED TO SELL BIDDERS INCLUDED BANKER BRUCE WASSERSTEIN WHO SHOPPED FOR A CLAUDE MONET BOSTON MONEY MANAGER SCOTT BLACK WHO BOUGHT AN EDGAR DEGAS AND A RENE MAGRITTE DEALER RICHARD FEIGEN WHO BOUGHT AN HENRI MATISSE GAETANA MATISSE WIDOW OF ART DEALER PIERRE MATISSE WHO BID ON AN YVES TANGUY AND A JEAN DUBUFFET AND TALKSHOW HOST JOAN RIVERS WHO BID FOR AN ALBERTO GIACOMETTI ONE ARTIST WHO SEEMS BACK IN FAVOR BASED ON THIS WEEK'S AUCTIONS IS MARC CHAGALL WHILE RENE MAGRITTE WORKS WERE SOMETIMES BYPASSED BY BUYERS PROMINENT CHICAGO ART DEALER RICHARD GRAY SAID HE WAS DELIGHTED WITH THE RESULTS OF THE SALE ESPECIALLY IN LIGHT OF THE WEAKER RESULTS FOR THE CONTEMPORARY ART AUCTIONS HELD LAST WEEK DEALERS AND COLLECTORS OF IMPRESSIONIST AND MODERN ART HE SAID ARE MORE STABLE SOUND AND MUCH BETTER FINANCED THAN THOSE IN THE CONTEMPORARY ART FIELD ANOTHER STANDOUT AT THE SALE WAS AN EDGAR DEGAS PASTEL CIRCA 1895 WHICH HAD CARRIED A PRESALE ESTIMATE OF 25 MILLION TO 35 MILLION INSTEAD IT BROUGHT 63 MILLION THERE WAS STRONG BIDDING FOR A MOODY CAMILLE PISSARRO PAINTING OF A PARIS STREET IN THE RAIN MONTMARTRE BOULEVARD IN THE AFTERNOON ESTIMATED TO SELL FOR 2 MILLION TO 3 MILLION IT BROUGHT 33 MILLION ALL PRICES INCLUDE CHRISTIE'S BUYERS' COMMISSION THE AUCTION HOUSE CHARGES BUYERS 15 ON THE FIRST 50000 OF THE PURCHASE PRICE AND 10 THEREAFTER 9305130005 930513 BUSINESS BRIEF CBS INC RECORD RESULTS ARE EXPECTED FOR 1993'S CONTINUING LINES CBS INC CHAIRMAN LAURENCE A TISCH SAID AT THE ANNUAL MEETING THAT THE COMPANY EXPECTS TO POST RECORD RESULTS FROM CONTINUING OPERATIONS THIS YEAR MR TISCH SAID CBS HAS JUST BEGUN TO CAPITALIZE ON PAST COSTCUTTING EFFORTS AND ITS STATUS AS THE TOPRATED TELEVISION NETWORK WHICH IT ACHIEVED ONE YEAR AGO CBS IS ON TARGET TO IMPROVE FULLYEAR OPERATING RESULTS OVER LAST YEAR'S 1051 A SHARE AND ABOVE 1989'S RECORD OF 1154 A SHARE FROM CONTINUING OPERATIONS MR TISCH SAID CBS BASED IN NEW YORK ALSO IS LOOKING TO EXPANDED PRODUCTION AND OWNERSHIP OF PROGRAMMING AS A KEY TO LONGTERM GROWTH CBS NEWS PRODUCES THREE PRIMETIME NEWS PROGRAMS AND HAS A FOURTH IN DEVELOPMENT AND CBS'S INHOUSE PRODUCTION UNIT CURRENTLY PROVIDES 3 1/2 HOURS OF PRIMETIME PROGRAMMING WEEKLY THE NETWORK'S FALL SCHEDULE WILL BE ANNOUNCED NEXT WEEK MR TISCH SAID THAT DESPITE THE COMPANY'S CURRENT SUCCESS THE BROADCASTING BUSINESS REMAINS A HARDPRESSED INDUSTRY AND IS OBSTRUCTED BY OUTDATED BROADCAST REGULATIONS THAT THE COMPANY IS SEEKING TO OVERTURN BUT HE ALSO PREDICTED THE MUCHBALLYHOOED 500CHANNEL REVOLUTION WILL BE MUCH SLOWER IN COMING THAN MANY HAVE FORECAST 9305130004 930513 FOREIGN EXCHANGE DOLLAR FINISHES MOSTLY HIGHER BOOSTED BY PRICE INDEX DATA GERMAN RATE CUT BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED MOSTLY HIGHER WEDNESDAY AS AN UNEXPECTED JUMP IN US APRIL PRODUCER PRICES SUGGESTED US INTEREST RATES AREN'T LIKELY TO FALL ANYTIME SOON AND A CUT IN GERMAN INTEREST RATES POINTED TO THE SOFTNESS OF THAT NATION'S ECONOMY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16100 MARKS UP FROM 16065 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11155 YEN UP FROM 11139 YEN STERLING WAS TRADING AT 15345 DOWN FROM 15410 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 11160 YEN AND AT 16098 MARKS TRADERS SAID THAT WHILE THE DOLLAR ALSO CONTINUES TO BENEFIT FROM OPTIMISTIC SENTIMENT IN THE WAKE OF ITS SOLID GAINS OF THE PAST FEW DAYS THIS MIGHT FADE AWAY IF US APRIL RETAIL SALES DATA DUE TODAY DON'T INDICATE THE US ECONOMIC RECOVERY HAS REGAINED ITS FOOTING EVERYBODY'S WAITING FOR THE NUMBERS SAID CARL AMENDOLA A VICE PRESIDENT AT BAYERISCHE HYPOTHEKEN & WECHSEL BANK AG WEDNESDAY'S REPORT OF A LARGERTHANEXPECTED INCREASE IN THE US APRIL PRODUCER PRICE INDEX SUPPORTED THE DOLLAR BECAUSE IT SIGNALED A POSSIBLE REVIVAL OF INFLATION SAID ANN B FINALY A TRADER AT THE INDUSTRIAL BANK OF JAPAN LTD IF INFLATION IS A PROBLEM THE US FEDERAL RESERVE CAN'T EASE INTEREST RATES MS FINALY SAID LOWER INTEREST RATES TEND TO MAKE A CURRENCY LESS ATTRACTIVE TO INVESTORS TRADERS NOTED THE PRODUCER PRICE INDEX ROSE A SEASONALLY ADJUSTED 06 IN APRIL FROM MARCH THE LABOR DEPARTMENT REPORTED THE INCREASE WAS THE LARGEST IN A SINGLE MONTH SINCE A 10 ADVANCE IN OCTOBER 1990 A SURVEY OF ECONOMISTS BY THE DOW JONES CAPITAL MARKETS REPORT HAD FORECAST A 02 INCREASE IN APRIL WHILE THE PRODUCER PRICE INDEX DATA BOOSTED THE DOLLAR WEDNESDAY THEIR LONGERTERM IMPACT MIGHT BE TO SOFTEN IT MR AMENDOLA SAID THIS THROWS A MONKEY WRENCH INTO THE WHOLE SCENARIO MORE INFLATION MIGHT MAKE THE RECOVERY MORE ANEMIC HE SAID ADDING THAT A RECOVERY IS CENTRAL TO A STRONGER DOLLAR DEALERS SAID ANOTHER FACTOR AIDING THE DOLLAR'S GAINS WEDNESDAY WAS THE BUNDESBANK'S REDUCTION OF ITS INTEREST RATE ON SECURITIES REPURCHASE AGREEMENTS OR REPOS THE GERMAN CENTRAL BANK TRIMMED THE RATE TO 760 AT ITS LATEST REPO AUCTION FROM 771 LAST WEEK TRADERS SAID THE CUT WAS SOMEWHAT LARGER THAN EXPECTED REPOS ARE THE CENTRAL BANK'S PREFERRED TOOL FOR FINETUNING THE GERMAN MONEY MARKET THE EASING PROMPTED CENTRAL BANKS IN THE NETHERLANDS BELGIUM AND AUSTRIA TO CUT KEY INTEREST RATES AS WELL THE REPO MOVE SHOWS THE BUNDESBANK'S WILLINGNESS TO DEAL WITH THE WEAKNESS IN THE GERMAN ECONOMY DESPITE ITS CONCERNS ABOUT INFLATION MR AMENDOLA SAID IT ALSO FURTHER CONFIRMS THE BANK'S TREND TOWARD EASIER RATES HE ADDED BOTH THE PRODUCER PRICE INDEX REPORT AND THE REPO CUT COME AGAINST A BACKGROUND OF A SEA CHANGE IN MARKET SENTIMENT TOWARD THE DOLLAR DURING THE PAST SEVERAL DAYS MR AMENDOLA SAID PEOPLE ARE STARTING TO FOCUS ON THE RELATIVE STRENGTH OF EACH ECONOMY THE BIG PICTURE IS THAT THE US ECONOMY IS COMING UP AND THE GERMAN ONE IS GOING DOWN HE SAID MEANWHILE DOLLARYEN TRADING WEDNESDAY REMAINED LETHARGIC AND RANGEBOUND MS FINALY SAID JAPANESE EXPORTERS CONTINUE TO SELL DOLLARS AT AROUND 112 YEN AND US FUNDS REMAIN STRONG BUYERS AT ABOUT 111 YEN AS THEY COVER SHORT POSITIONS SHE ADDED THAT'S WHAT'S KEEPING THE DOLLAR PENNED IN MS FINALY SAID THE DOLLAR IS LIKELY TO HOLD RELATIVELY CLOSE TO ITS CURRENT LEVELS AGAINST ITS JAPANESE COUNTERPART FOR THE NEXT SEVERAL WEEKS SHE ADDED IN CROSS OR NONDOLLAR TRADING WEDNESDAY THE MARK SAGGED AGAINST THE YEN LATE WEDNESDAY IN NEW YORK THE MARK TRADED AT 6929 YEN DOWN FROM 6933 YEN LATE TUESDAY THE MARK HAD FIRMED DURING MUCH OF THE DAY BUT ENCOUNTERED STRONG SELLING INTEREST FROM ASIAN PARTIES AROUND 6950 YEN MS FINALY SAID 9305130003 930513 YOUR MONEY MATTERS INVESTMENT DARTBOARD STOCK PROS HOPE TO REGAIN TOUCH BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL IS IT GETTING HARDER TO PICK A WINNING STOCK THAT'S ONE POSSIBLE CONCLUSION TO BE DRAWN FROM RECENT RESULTS IN THIS COLUMN'S STOCKPICKING CONTEST THE INVESTMENT DARTBOARD REGULARLY PITS A FEW STOCKS SELECTED BY WALL STREET'S FINEST AGAINST A FEW CHOSEN BY A RANDOM HEAVE OF DARTS SINCE JULY 1990 WHEN THE CONTEST'S CURRENT RULES TOOK EFFECT THE PROS HAVE WON 19 SIXMONTH CONTESTS THE DARTS 16 TIMES WHAT'S MORE THE PROS ENJOY A RESPECTABLE LONGTERM ADVANTAGE WITH AN AVERAGE SIXMONTH GAIN OF 81 COMPARED WITH 54 FOR THE DARTS BUT LATELY THE PROS SEEM TO BE LOSING THEIR TOUCH THE CONTEST THAT RAN FROM NOV 9 THROUGH APRIL 30 IS A CASE IN POINT THE DOW JONES INDUSTRIAL AVERAGE ROSE 58 DURING THAT PERIOD FOUR STOCKS CHOSEN BY THE TOSS OF THE DARTS FELL 36 ON AVERAGE BUT THE PROS' SELECTIONS DECLINED AN AVERAGE OF 139 THREE OF THE FOUR PROS SELECTED LOSERS ONLY LOUISA WARREN CHAIRMAN OF DMC MANAGEMENT CO IN NEW YORK NOTCHED A GAIN OF COURSE ANY GROUP OF DISTINGUISHED STOCK PICKERS CAN STUMBLE ONCE IN A WHILE BUT THE CONTEST'S PROS MANY OF WHOM ARE WELLKNOWN AND WELLRESPECTED HAVE LOST SEVEN OF THE PAST 12 CONTESTS TO THE FLYING FORCES OF CHANCE IN ROUNDS CONCLUDED IN THE PAST YEAR THE PROS HAVE AVERAGED A 27 LOSS THE DARTS A 42 GAIN CAN THE PROS TURN IT AROUND THE NEW TEAM THAT TODAY KICKS OFF THE LATEST ROUND IN THE CONTEST AIMS TO TRY MS WARREN WHO ACHIEVED A 74 GAIN IN CHEMICAL BANKING CORP SHARES LAST TIME OUT RETURNS WITH AN APPETIZING NEW PICK MCDONALD'S CORP WHILE CONFESSING TO AN OCCASIONAL FORAY TO THE GOLDEN ARCHES HERSELF MS WARREN LIKES THE STOCK MAINLY BECAUSE SHE THINKS MCDONALD'S HAS BIG OPPORTUNITIES TO EXPAND ABROAD THE FASTFOOD RESTAURANT CHAIN BASED IN OAK BROOK ILL ALREADY HAS SOME 4200 UNITS ABROAD MS WARREN SAYS IT PLANS TO OPEN 400 TO 600 MORE ANNUALLY IN SUCH PLACES AS JAPAN CANADA BRITAIN GERMANY AUSTRALIA AND FRANCE SHE BELIEVES MCDONALD'S CAN STILL SHOW DECENT GROWTH IN THE US AS WELL THE CHAIN IS TRYING TO ADD REVENUE BY EMPHASIZING BREAKFAST AND DINNER NOT JUST LUNCH AND IT BENEFITS FROM THE CONTINUING TREND FOR AMERICANS TO EAT OUT MORE OFTEN EACH YEAR THE COMPANY IS BUYING BACK ITS OWN STOCK OFTEN A GOOD SIGN IT HAD NOT YET FINISHED SWALLOWING A 500 MILLION SHARE BUYBACK WHEN IT RECENTLY ANNOUNCED PLANS TO BITE OFF ANOTHER 200 MILLION SHARES MCDONALD'S SHARES CLOSED YESTERDAY AT 49625 ON THE NEW YORK STOCK EXCHANGE THAT'S 16 TIMES MS WARREN'S 1993 EARNINGS ESTIMATE OF 3 A SHARE SHE WOULD BUY THE STOCK UP TO THE LOW 50S WHITNEY MERRILL MANAGER OF THE PAINEWEBBER DIVIDEND GROWTH FUND HAS COME IN SECOND IN THE CONTEST TWICE ONCE WITH A GAIN AND MORE RECENTLY WITH A 12 PERCENTAGE POINT LOSS NOW HE'S BACK WITH A NEW PICK SHERWINWILLIAMS CO THE CLEVELANDBASED PAINT MAKER AND RETAILER EVER SINCE PHILIP MORRIS COS CUT THE PRICE OF MARLBORO CIGARETTES INVESTORS HAVE BEEN FRETTING ABOUT THE FATE OF BRANDNAMEDEPENDENT COMPANIES MR MERRILL THINKS THAT IS HOLDING DOWN THE PRICE OF SHERWINWILLIAMS SHARES SINCE BOTH DUTCH BOY AND SHERWINWILLIAMS PAINT ARE WELLKNOWN BRANDS BUT THE NEW YORK MONEY MANAGER BELIEVES THE FEARS ARE SOMEWHAT OVERBLOWN ANYWAY HE SAYS SHERWINWILLIAMS ALSO MAKES HOUSE BRANDS OF PAINT ITS BALANCE SHEET IS STRONG THE COMPANY HAS SHOWN A NICE TOUCH WITH ACQUISITIONS AND EARNINGS ARE LIKELY TO GROW A STEADY 10 TO 12 SHERWINWILLIAMS SHARES WERE TRADING YESTERDAY AT 33875 ON THE BIG BOARD OR ABOUT 20 TIMES THE PAST 12 MONTHS' EARNINGS TWO NEW CONTESTANTS OTIS T BRADLEY AND GRACE E MESSNER WILL TRY TO BUTTRESS THE PROS' PERFORMANCE MR BRADLEY WHO IS BASED IN NEW YORK IS DIRECTOR OF RESEARCH FOR GILFORD SECURITIES CHICAGO MS MESSNER IS A MONEY MANAGER AT WILMINGTON TRUST CO IN WILMINGTON DEL MR BRADLEY RECOMMENDS A SHORT SALE OF LOEWS CORP IN A SHORT SALE AN INVESTOR SEEKS TO PROFIT FROM AN ANTICIPATED PRICE DECLINE BY SELLING BORROWED SHARES EVENTUALLY THE INVESTOR MUST PURCHASE STOCK TO REPLACE THE BORROWED SHARES BUT IF THE STOCK'S PRICE HAS ACTUALLY FALLEN THE INVESTOR PROFITS MR BRADLEY SAYS LOEWS WHICH CLOSED AT 99 IN BIG BOARD TRADING COULD DECLINE AS MUCH AS 33 IN THE NEXT SIX MONTHS OR SO LOEWS WITH HEADQUARTERS IN NEW YORK IS IN SEVERAL BUSINESSES TOBACCO LORILLARD INSURANCE CNA AND HOTELS AND BROADCASTING PARTIAL OWNERSHIP OF CBS BUT TOBACCO AND INSURANCE ACCOUNT FOR ALMOST ALL OF THE COMPANY'S PROFITS MR BRADLEY SAYS AND HE THINKS THOSE TWO BUSINESSES ARE IN TROUBLE TOBACCO'S TROUBLES ARE PRETTY WELL KNOWN CONCLUSIVE EVIDENCE THAT SMOKING CAUSES MAJOR HEALTH PROBLEMS A POSSIBLE PRICE WAR THE RISING MARKET SHARE OF LOWPRICED BRANDS DECLINING CIGARETTE CONSUMPTION IN THE US AND THE LIKELIHOOD OF NEW SIN TAXES SHARES IN BOTH PHILIP MORRIS AND RJR NABISCO HOLDINGS CORP HAVE TAKEN BIG HITS THIS YEAR THE PRICE OF LOEWS HAS FALLEN MORE GENTLY BUT MR BRADLEY THINKS IT WILL CATCH UP AS FOR PROPERTY AND CASUALTY INSURANCE INVESTORS HAVE PINNED THEIR HOPES ON THE IDEA THAT BIG LOSSES FROM RECENT STORMS MOST NOTABLY HURRICANE ANDREW WILL FORCE INSURERS TO RAISE PRICES TO MORE PROFITABLE LEVELS BUT MR BRADLEY SAYS WAITING FOR THOSE PRICE INCREASES WILL BE LIKE WAITING FOR GODOT IT HASN'T HAPPENED YET HE SAYS AND I'M VERY CYNICAL THAT IT WILL MS MESSNER OPTS FOR CYPRUS MINERALS CO OF ENGLEWOOD COLO CYPRUS'S MAINSTAY IS COPPER THOUGH IT ALSO MINES COAL MOLYBDENUM AND OTHER MINERALS COPPER FETCHED MORE THAN 1 A POUND LAST YEAR SHE SAYS BUT THE PRICE HAS RECENTLY FALLEN TO ABOUT 79 CENTS IT SHOULD RECOVER SHE SAYS AS ECONOMIES REBOUND IN EUROPE AND JAPAN LATE THIS YEAR OR EARLY IN 1994 TYPICALLY MS MESSNER SAYS COPPER STOCKS MOVE IN ANTICIPATION OF SUCH RECOVERIES SO SHE SAYS CYPRUS IS A GOOD BET FOR THE NEXT SIX MONTHS TO A YEAR SHE ADDS THAT CYPRUS HAS CUT COPPER PRODUCTION COST TO 74 OR 75 CENTS A POUND FROM MORE THAN 80 CENTS THE TARGET IS IN THE 60S SHE SAYS INDUSTRY LEADER PHELPS DODGE CORP HAS COSTS AROUND 55 CENTS A POUND IF THINGS WORK OUT AS SHE FORESEES MS MESSNER THINKS CYPRUS SHARES WILL HIT 33 TO 36 IN SIX MONTHS OR SO THEY CLOSED ON THE NEW YORK STOCK EXCHANGE AT 27 IN THE COMING SIX MONTHS THE PROS' PICKS WILL COMPETE AGAINST A DARTBOARD PORTFOLIO CONSISTING OF IMCLONE SYSTEMS INC IMCL JENNIFER CONVERTIBLES INC JEN MARSH SUPERMARKETS INC CLASS A MARSA AND PHILIP MORRIS MO 9305130002 930513 INTERNATIONAL BRIEF LVMH MOET HENNESSY LOUIS VUITTON CONSOLIDATED REVENUE ROSE 36 IN COMPANY'S 1ST PERIOD LVMH MOET HENNESSY LOUIS VUITTON SA FRANCE'S LEADING WINES SPIRITS AND LUXURY GOODS GROUP SAID ITS CONSOLIDATED REVENUE FOR THE FIRST QUARTER OF 1993 ROSE BY 36 TO 469 BILLION FRANCS 8648 MILLION FROM 453 BILLION FRANCS A YEAR EARLIER AFTER ELIMINATION OF CHANGES IN THE GROUP'S STRUCTURE AND EXCHANGERATE VARIATIONS REVENUE WOULD HAVE GROWN 38 REVENUE FOR THE GROUP'S WINE AND SPIRITS ACTIVITY ROSE BY ONLY 3 TO 191 BILLION FRANCS LVMH SAID SALES OF CHAMPAGNE SHOWED ONLY VERY WEAK GROWTH IN THE FIRST THREE MONTHS AND IT WARNED THAT THE PROFITABILITY OF THIS BUSINESS SECTOR IN 1993 WILL BE SHARPLY BELOW LAST YEAR'S SALES OF COGNAC AND SPIRITS SHOWED STRONG GROWTH IN THE FIRST QUARTER IN CHINA AND HONG KONG BUT LVMH SAID THERE IS NO SIGN OF A PICKUP IN JAPAN ONE OF THE GROUP'S MAIN MARKETS SALES OF LUXURY LUGGAGE AND LEATHER ITEMS IN THE QUARTER FELL 80 MILLION FRANCS TO 119 BILLION FRANCS A TREND THAT LVMH SAID WAS IN LINE WITH ITS EXPECTATIONS 9305130001 930513 THEY COULD HAVE BEEN VERY MEAN BY PICKING SOME DEADEND STREET BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT'S THERE IN BLACK AND WHITE ON THE FRONT PAGE OF THE PROXY STATEMENT FOR TODAY'S CAPITAL CITIES/ABC INC ANNUAL MEETING OF SHAREHOLDERS THE MEETING WILL BE HELD IN FORT WORTH TEXAS AT 685 JOHN B SIAS MEMORIAL PARKWAY MR SIAS A 22YEAR VETERAN AND LONGTIME TOP EXECUTIVE AT CAPITAL CITIES/ABC IS CERTAINLY HELD IN HIGHENOUGH ESTEEM TO MERIT HAVING A PARKWAY NAMED AFTER HIM PROBLEM IS MR SIAS ISN'T EXACTLY DEAD YET JUST RETIRED BUT FOR HIS CAPCITIES COLLEAGUES WHO PLANTED THIS PRANK NINE LONG YEARS AGO REVENGE IS SWEET MR SIAS IS KNOWN AS THE PRANKSTER NONPAREIL INSIDE STRAIGHTLACED CAPITAL CITIES/ABC BEFORE RETIRING AS PRESIDENT OF THE COMPANY'S ABC TELEVISION NETWORK GROUP EARLIER THIS YEAR HE HAD COMPILED A LEGENDARY RECORD OF UNCORPORATE BEHAVIOR AT MEETINGS OF TOP BRASS MR SIAS WOULD HIDE BEHIND THE OFFICE DOOR CLUTCHING AN AIR HORN TO BLAST UNSUSPECTING ASSOCIATES BENEATH HIS CORPORATE SUITS AND WHITE DRESS SHIRTS HE WORE A CAPTAIN MARVEL TSHIRT DURING ELEVATOR RIDES HE WASN'T ABOVE TOYING WITH THE ALARM BUTTON AND HE IS RENOWNED FOR ONCE HAVING BOUNDED FROM CAR TOP TO CAR TOP IN A PARKING LOT ALTHOUGH NO ONE IT SEEMS CAN CLAIM TO ACTUALLY HAVING SEEN HIM DO THAT ALL OF IT WAS IN THE INTEREST OF GETTING EMPLOYEES TO TAKE THEMSELVES LESS SERIOUSLY AND NOW THEY ARE DOING THE SAME TO HIM HIS PAST IS CATCHING UP TO HIM NOTES PHILLIP J MEEK PRESIDENT OF CAPITAL CITIES/ABC'S PUBLISHING GROUP AND THE FELLOW WHO DECIDED TO HONOR MR SIAS MEMORIALLY IF PREMATURELY THE PARKWAY PRANK DATES BACK TO 1984 WHEN THE COMPANY WAS BREAKING GROUND AT A PRINTING PLANT FOR ITS FORT WORTH STARTELEGRAM NEWSPAPER IN TINY EDGECLIFF VILLAGE WHICH IS COMPLETELY SURROUNDED BY FORT WORTH AS A GAG MR MEEK THEN PUBLISHER OF THE PAPER GOT THE EDGECLIFF VILLAGE CITY COUNCIL TO NAME THE STREET OUTSIDE THE PLANT AFTER MR SIAS PREHUMOUSLY MR SIAS ALREADY HAS A NEW JOB AS PRESIDENT OF CHRONICLE PUBLISHING CO IN SAN FRANCISCO AND PLANS TO ATTEND THE MEETING TODAY AND HE INSISTS I'M ALIVE IT'S A PHONY MEMORIAL PARKWAY BUT WHEN MR SIAS FIRST FOUND OUT ABOUT THE GAG AND QUESTIONED THE MEMORIAL PART MR MEEK RESPONDED IT'S ALL IN THE EYE OF THE BEHOLDER 9305130180 930426 REVIEW & OUTLOOK EDITORIAL BUFFALOED AT PENN A FRESHMAN THE LATEST VICTIM OF THE IDEOLOGICAL FEVER KNOWN AS POLITICAL CORRECTNESS GOES ON TRIAL AT THE UNIVERSITY OF PENNSYLVANIA TODAY IT'S NOT IRRELEVANT TO NOTE THAT THE HEAD OF THIS INSTITUTION SHELDON HACKNEY IS PRESIDENT CLINTON'S NOMINEE TO HEAD THE NATIONAL ENDOWMENT FOR THE HUMANITIESAND A MAN UNIVERSITY SPOKESMEN INSIST COMMITTED TO FREE SPEECH THAT'S REASSURING TO KNOW ESPECIALLY IN LIGHT OF THE GOINGS ON AT PENN THERE THE DISCIPLINARY FURIES OF THE SPEECH POLICE HAVE DESCENDED ON FRESHMAN EDEN JACOBOWITZ FOR SHOUTING OUT OF THE WINDOW MR JACOBOWITZ IT SEEMS WAS STUDYING IN HIS DORM ROOM AFTER MIDNIGHT WHEN WOMEN MEMBERS OF A BLACK SORORITY CAMPED OUTSIDE HIS WINDOW BEGAN STAMPING THEIR FEET AND SCREAMING AND GENERALLY WHOOPING IT UP IRATE MR JACOBOWITZ YELLED THAT THEY WERE WATERBUFFALO AND THAT IF THEY WANTED TO PARTY THERE WAS A ZOO NEARBY THUS BEGAN ONE OF THE MORE KAFKAESQUE CHAPTERS IN THE ONGOING CAMPUS FOLLIES THE CAMPUS POLICE RUSHED UP AND ASKED OTHER DORM RESIDENTS SOME OF WHOM IN FACT HAD BEEN SHOUTING RACIAL SLURS IF THEY HAD YELLED OUT OF THE WINDOW ALL OF THEM DENIED IT ONLY EDEN JACOBOWITZ STEPPED FORWARD TO SAY HE HAD BEEN YELLING OUT OF THE WINDOW THE POLICE ASKED THE DORM RESIDENTS IF THEY KNEW THE RACE OF THE NOISEMAKERS AND WERE TOLD NO EXCEPT FOR EDEN JACOBOWITZ WHO SAID YES BUT THAT HE TOLD THE POLICE HAD NOTHING TO DO WITH HIS ANGER MR JACOBOWITZ WHO THOUGHT ONE SHOULD NOT LIE TO THE POLICE WOULD PAY A PRICE FOR HIS FORTHRIGHTNESS HE HAD YET TO LEARN WHAT THEY DON'T TEACH AT FRESHMAN ORIENTATION NAMELY HE HAD NOW ENTERED A WORLD WHERE A CHARGE OF RACISM OR SEXISM IS AS GOOD AS A CONVICTION THE RACIAL HARASSMENT CASE MOUNTED AGAINST HIM READS LIKE SOMETHING FROM THE THEATER OF THE ABSURD THE CAMPUS JUDICIAL INQUIRY OFFICER ROBIN READ DETERMINED THAT THE STUDENT HAD INTENDED A RACIAL SLUR BY THE REFERENCE TO WATER BUFFALO WHICH SHE SAID SUGGESTED LARGE BLACK ANIMALS THAT LIVE IN AFRICA THE STUDENT'S REFERENCE TO ZOO MS READ CHARGED WAS ALSO RACIAL NOTWITHSTANDING THE FACT THAT IT IS A TERM COMMONLY APPLIED ON CAMPUSES TO NOISY FRATERNITY HOUSES AS IN THE MOVIE ANIMAL HOUSE IN THE COURSE OF HER CONTINUING INQUIRY MS READ ASKED MR JACOBOWITZ IF HE HAD BEEN HAVING RACIST THOUGHTS THE NIGHT OF THE CRIME HE HAD NO SUCH THOUGHTS HE ASSURED HER DESPITE THIS OFFICIAL'S DETERMINED BELIEF THAT WATER BUFFALO IS A RACIAL SLUR A VARIETY OF EXPERTS WHO COULD BE EXPECTED TO KNOW A RACIAL SLUR WHEN THEY HEARD ONE DISAGREED DR ELIJAH ANDERSON A LEADING BLACK ETHNOGRAPHER AND SOCIOLOGIST AT PENN HAS OFFERED TO TESTIFY IN MR JACOBOWITZ'S BEHALF THAT WATER BUFFALO IS NOT A RACIAL SLUR DIRECT OR INDIRECT PROFESSOR JOHN ROBERTS DIRECTOR OF AFROAMERICAN STUDIES AT PENN AND SEVERAL OTHER OF THE UNIVERSITY'S AUTHORITIES ON AFROAMERICAN CULTURE AND BLACKWHITE RELATIONS EMPHATICALLY AGREE PENN PROFESSOR DAN BENAMOS AN EXPERT IN BLACK FOLKLORE PROVIDED THE KEY TO THE QUESTION OF THE WATER BUFFALO REFERENCE WHEN HE DETERMINED THAT THE STUDENT HAD ATTENDED YESHIVA AND KNEW HEBREW HE SUGGESTED THAT THE STUDENT HAD QUICKLY TRANSLATED AN EXTREMELY COMMON HEBREW WORD BEHAMEH WHICH LITERALLY MEANS WATER OXEN BUT IS USED IN EVERYDAY LANGUAGE TO MEAN FOOL OR THOUGHTLESS PERSON IT HAS NO RACIAL CONNOTATIONS WHATSOEVER IN THE COURSE OF HER INTERROGATIONS MS READ OFFERED THE FRESHMAN A DEAL THERE WOULD BE NO FURTHER CHARGES IF HE WOULD AGREE TO HOLD A RACIAL SENSITIVITY SEMINAR IN HIS FORM AND ALSO AGREE TO HAVE A HARASSMENT CHARGE NOTED ON HIS TRANSCRIPT MR JACOBOWITZ REFUSED THE OFFER WHICH IS WHY HE IS NOW ON TRIAL FACING THE POSSIBILITY OF EXPULSION FROM PENN IF FOUND GUILTY WHAT HAPPENS TO HIM AT TODAY'S TRIBUNAL SHOULD BE OF INTEREST TO ANYONE CONCERNED WITH THE STATE OF REASON AND SANITY ON THE CAMPUSES TODAY SEE RELATED LETTERS LETTERS TO THE EDITOR WHAT'S IN A NAME WSJ MAY 13 1993 9304260022 YY93 MM05 9305130160 930416 MARKETING & MEDIA ADVERTISING TBWA ADS FOR EVIAN USE DELUGE OF WORDS TO DROWN OUT RIVALS BY KEVIN GOLDMAN HERE IS WHAT'S HAPPENING ON THE WATER FRONT EVIAN THE CLEAR LEADER IN THE NONCARBONATED BOTTLE CATEGORY IS TRYING TO STEM THE TIDE OF COMPETITION FROM CHEAPER PRIVATELABEL BRANDS AND OTHER LOWERPRICED ENTRIES BUT INSTEAD OF RESORTING TO PRICE CUTS AN APPROACH FAVORED BY OTHER BRAND FRANCHISES SUCH AS MARLBORO IN TOBACCO AND PAMPERS IN DIAPERS EVIAN IS RESORTING TO UM LIP SERVICE EVIAN AND ITS AD AGENCY TBWA ADVERTISING ARE PLACING A WORDY 16PAGE INSERT IN ROLLING STONE THE NEW YORKER AND HG FORMERLY HOUSE & GARDEN EXPOUNDING ON THE BENEFITS OF QUAFFING THE EXPENSIVE BRAND IT IS UNCLEAR WHO WILL STOP AND READ THE OVER 600WORD INSERT THAT INCLUDES SUCH TIDBITS AS THREEQUARTERS OF THE BRAIN ITSELF IS WATER AND CONTINUOUSLY USES ZENLIKE TERMS LIKE PROPER HYDRATION THE QUESTION IS WHETHER THE VERBIAGE WILL WORK AT A TIME WHEN CONSUMERS ARE QUESTIONING THE REAL VALUE OF BIG BRAND NAMES IN MYRIAD CATEGORIES BOTTLED WATER IS ONE OF THE FASTEST GROWING SEGMENTS FOR PRIVATE LABELS PRIVATELABEL SALES IN SUPERMARKETS GREW LAST YEAR BY 19 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE OF COURSE EVIAN WOULD SAY ITS COMMANDING LEAD IN STILL WATERS ISN'T EVAPORATING AND IT INSISTS THE NEW AD CAMPAIGN IS UNRELATED TO ANY COMPETITIVE THREAT EVIAN IS ADAMANT IN ITS DECISION TO FORGO DISCOUNT PRICING AT ALL BUT MARKETING EXPERTS SAY THAT RELUCTANCE COULD HURT EVIAN IN THE LONG RUN MUCH AS PHILIP MORRIS COS'S MARLBORO HAS BEEN WRACKED BY COMPETITIVE DISCOUNT BRANDS WHEN EVIAN NATURAL SPRING WATER WAS FIRST DISTRIBUTED NATIONALLY IN 1987 ABOUT 50 RIVALS WERE VYING TO QUENCH THE THIRST OF THE US MARKET NOW CONSUMERS ARE SATURATED WITH CHOICES FROM OVER 700 COMPETITORS AND THAT DOESN'T INCLUDE FIZZY WATER SUCH AS PERRIER THERE IS MUCH AT STAKE THE SOCALLED FLAT WATER CATEGORY HAS TOTAL SALES OF 230 MILLION OF WHICH EVIAN A UNIT OF GRAND BRANDS OF EUROPE HAS ABOUT 50 THE OTHER HALF IS HELD BY OTHER NATIONAL BRANDS SUCH AS CANADIAN GLACIER AND CRYSTAL GEYSER AND LESS EXPENSIVE PRIVATELABEL BRANDS SUCH AS PRESIDENT'S CHOICE AND SMITH'S WATER IT IS A PECULIAR BATTLE THIS IS AFTER ALL WATER WHICH MOST CONSUMERS CAN GET FOR FREE SIMPLY BY TURNING ON THE TAP BUT EVIAN HAS THAT CERTAIN CACHET CONTENDS HELLEN BERRY VICE PRESIDENT OF MARKETING AT BEVERAGE MARKETING CORP I WOULDN'T WANT TO WALK DOWN THE STREET SWIGGING A PRIVATELABEL BRAND SHE SAYS DRINKING EVIAN SAYS I AM SOMEONE WHO IS HEALTHY FEWER AND FEWER CONSUMERS HOWEVER SEEM TO ABIDE BY THE BRANDCONSCIOUS APPROACH EVIAN'S AVERAGE PRICE FOR ITS 15LITER BOTTLE IS 164 BOTTLES OF SMITH A PRIVATELABEL COMPETITOR IN 120 STORES IN EIGHT STATES RUN ABOUT 85 CENTSAND THAT'S FOR A WHOLE GALLON WHICH AMOUNTS TO ALMOST 38 LITERS EVIAN HAS TO BE VERY CAREFUL SAYS TOM PIRKO PRESIDENT OF MARKETING CONSULTANT BEVMARK OTHER BRANDS ARE GEARING UP FOR THE CHALLENGE AND EVIAN'S MARGINS ARE GOING TO BE EATEN AWAY THIS IS HAPPENING WITHIN EACH MAJOR CATEGORY THERE IS A SLOW DULL SIREN BEGINNING TO PIPE THROUGH AND EVIAN BETTER HEED THE WARNING CHEAPER BRANDS ARE ALSO BORROWING THE FEEL OF THE EVIAN LOGO OF THE SNOWCAPPED FRENCH ALPS SNOWCOVERED MOUNTAINTOPS ARE POPPING UP ON OTHER LABELS SAYS MR PIRKO IT'S DOUBTFUL CONSUMERS ARE GOING TO NOTICE THE DIFFERENCE HIS ADVICE EVIAN WILL HAVE TO EVENTUALLY PRICE DOWNWARD NO MATTER WHAT THEY SAY NOW AT THE MOMENT HOWEVER EVIAN'S SALES DON'T SHOW SIGNS OF DRYING UP LAST YEAR EVIAN WHICH SAYS IT TAKES ITS PRODUCT FROM THE FRENCH ALPS HAD SALES OF 101 MILLION AN INCREASE OF ALMOST 10 FROM 1991 SALES OF 92 MILLION ACCORDING TO BEVERAGE MARKETING CORP IN 1987 WHEN EVIAN WENT NATIONAL AFTER FOUR YEARS OF REGIONAL TESTING THE SALES WERE A MERE 162 MILLION AND MIKE DUFF MANAGING EDITOR OF BEVERAGE WORLD BELIEVES THAT PEOPLE WHO IMBIBE EVIAN AREN'T NECESSARILY GOING TO TRADE DOWN TO A CHEAPER BRAND EVIAN HAS DONE A GOOD JOB IN ASSOCIATING ITSELF WITH HEALTH AND FITNESS EACH WATER HAS ITS OWN FINGERPRINT INSISTS ROBERT S ROSENTHAL SENIOR VICE PRESIDENT AT TBWA THE NEW ADS PART OF A MORE THAN 10 MILLION CAMPAIGN FROM TBWA STRESS THE BENEFITS OF DRINKING EVIAN THROUGHOUT ONE'S LIFE THE INSERT ADDRESSES HOW AN INDIVIDUAL CAN REPLENISH THE INNER SUPPLY OF WATER AND SHOWS ELEGANT BLACKANDWHITE PHOTOS OF A GRADE SCHOOL CLASS EXERCISING A COLLEGE STUDENT TOSSING A FRISBEE AND A BIKER IN THE MOUNTAINS THE 16PAGE INSERT WILL RUN IN THE THREE MAGAZINES ONLY ONCE IT COST EVIAN ABOUT 1 MILLION TO PRODUCE AND PLACE THE INSERT EVIAN WILL RUN ONEPAGE VERSIONS OF SOME OF THE EXECUTIONS IN MAGAZINES SUCH AS SPIN SELF AND OUTSIDE THE APPROACH OF THE CAMPAIGN SAYS MARK RODRIGUEZ CHIEF EXECUTIVE OFFICER OF GREAT BRANDS OF EUROPE CAME FROM INTERVIEWING EVIAN DRINKERS IN THE US THEY TOLD US THAT WHILE HEALTH AND FITNESS WAS THE PLATFORM OF THE 1980S THEIR LIVES EVOLVED HE SAYS THIS CAMPAIGN IS DESIGNED TO REFLECT THEIR LIFE STYLE CHANGES SO INSTEAD OF JUST SHOWING EVIAN IN THE HANDS OF SWEATY JOCKS IT'S ALSO SEEN MAKING AN APPEARANCE IN A CONFERENCE ROOM AT WORK AND ALONGSIDE A NAPPING PREGNANT WOMAN ON A BEACH CLOROX CORP FIRED THE CHICAGO OFFICE OF OMNICOM GROUP'S DDB NEEDHAM FROM ITS COMBAT INSECTICIDE AND KINGSFORD CHARCOAL ACCOUNTS PUTTING UP FOR GRABS A TOTAL OF 30 MILLION IN BILLINGS FOR THOSE TWO BRANDS AND OTHER PRODUCTS THE MOVE SEVERS A 10YEAR RELATIONSHIP BETWEEN NEEDHAM AND CLOROX IN OAKLAND CALIF LAST WEEK DDB WILLINGLY FORFEITED MORE THAN 20 MILLION IN CLOROX BILLINGS FOR CLOROX CLEANUP SOFT SCRUB AND LIQUIDPLUMR ACCOUNTS TO ACCEPT 40 MILLION IN NEW BUSINESS FROM CLOROX RIVAL SC JOHNSON & SON RACINE WIS YESTERDAY CLOROX PULLED THE PLUG ON THE REMAINING ACCOUNTS DDB HAD FOR KINGSFORD AND COMBAT WITH COMBINED BILLINGS OF ABOUT 8 MILLION A DDB NEEDHAM SPOKESWOMAN SAID THE APPROXIMATELY 30 PEOPLE ON THE FORMER CLOROX TEAM WON'T BE REASSIGNED TO THE JOHNSON BUSINESS FOR INTEGRITY REASONS CLOROX ISN'T VERY HAPPY WITH US BUT THE PEOPLE WHO WORKED ON THEIR BUSINESS AREN'T GOING TO MOVE RIGHT OVER TO THE JOHNSON BUSINESS SHE SAID A CLOROX SPOKESMAN SAID THERE ISN'T A PARTICULAR TIME FRAME INVOLVED IN SEARCHING FOR A NEW AGENCY AND THE SEARCH DOESN'T APPEAR TO BE CONFINED TO ITS TWO REMAINING AGENCIES YOUNG & RUBICAM AND FOOTE CONE & BELDING COMMUNICATIONS HASBRO INC PAWTUCKET RI AND AD AGENCY GRIFFIN BACAL NEW YORK SETTLED FEDERAL TRADE COMMISSION CHARGES OVER A COMMERCIAL THAT WAS ALLEGED TO HAVE FALSELY PORTRAYED THAT THE GI JOE BATTLE COPTER COULD HOVER AND FLY IN A SUSTAINED AND DIRECTED MANNER THE COMMERCIAL'S SCENES OF PITCHED MIDAIR BATTLES DREW JEERS FROM CONSUMER ACTIVISTS AND THE SCRUTINY OF THE FTC WHEN IT AIRED IN 1991 THE FTC CHARGED THAT IN THE SPOT PROTOTYPES OF THE COPTERS WERE EQUIPPED WITH BATTERYOPERATED MOTORS SUSPENDED ON WIRES AND MANUALLYOPERATED FEATURES THAT DON'T APPEAR IN THE VERSION SOLD TO KIDS THE FTC ALSO CITED PACKAGING OF HASBRO'S TOXOVIPER ECOWARRIOR ACTION FIGURE WHICH THE FTC SAID WAS RETOUCHED TO ENHANCE A COLOR CHANGE OR BATTLEDAMAGE FROM BEING SQUIRTED WITH WATER BOTH HASBRO AND GRIFFIN BACAL AGREED TO REFRAIN FROM DECEPTIVE ADVERTISING IN THE FUTURE IN ADDITION HASBRO MUST PAY A CIVIL PENALTY OF 175000 HASBRO SAID IT DOESN'T BELIEVE ITS ADS WERE UNFAIR OR DECEPTIVE GRIFFIN BACAL SAID IT HAS A COMMITMENT NOT TO CREATE ANY ADVERTISING WHICH IS FALSE OR DECEPTIVE IN ANY WAY THE FTC SAID THE SETTLEMENTS WOULDN'T PRECLUDE THE USE OF FANTASY SEGMENTS OR PROTOTYPES IN TOY COMMERCIALS AS LONG AS THE USE OF THEM ISN'T DECEPTIVE IN THE AFTERMATH OF THE FATAL SHOOTING OF A FLORIDA OBSTETRICIAN BY AN ANTIABORTION PROTESTER PLANNED PARENTHOOD FEDERATION OF AMERICA IS URGING THE FEDERAL COMMUNICATIONS COMMISSION TO LET TELEVISION STATIONS REFUSE TO AIR ANTIABORTION POLITICAL CANDIDATES' ADS THAT TARGET DOCTORS CURRENT FCC REGULATIONS GUARANTEE POLITICAL CANDIDATES ACCESS TO AIRTIME FOR THEIR CAMPAIGN ADS LAST YEAR AND IN RECENT MONTHS ANTIABORTION CANDIDATES HAVE USED THE CAMPAIGNSEASON REGULATIONS TO GET GORY IMAGES OF ABORTED FETUSES ON THE AIR PLANNED PARENTHOOD CITED AN INSTANCE OF A 1992 POLITICAL AD THAT IDENTIFIED THE NAME ADDRESS AND PHOTO OF A PLANNED PARENTHOOD DOCTOR IN DES MOINES IOWA THE GROUP ARGUED THAT BROADCASTERS SHOULDN'T BE REQUIRED TO PROVIDE MANDATORY ACCESS TO MATERIAL WHICH INVADES THE PRIVACY OF PRIVATE CITIZENS AND HAS THE LIKELY EFFECT OF INCITING VIEWERS TO HARASS THEM THE FLORIDA DOCTOR WHO WAS MURDERED DR DAVID GUNN WASN'T FEATURED IN TELEVISION SPOTS BUT HIS FACE WAS DISTRIBUTED ON WANTED POSTERS ACCOUNTS FINE JEWELERS GUILD ZALE CORP'S DALLASBASED RETAIL CHAIN TAPPED GOLDSMITH/JEFFREY NEW YORK FOR ITS ESTIMATED 6 MILLION NEWSPAPER ACCOUNT RODALE PRESS EMMAUS PENN HIRED EMMERLING POST NEW YORK TO CREATE ADS FOR OUTDOOR MAGAZINES INCLUDING RUNNER'S WORLD BACKPACKER BICYCLING AND MEN'S HEALTH BILLINGS COULDN'T BE DETERMINED SEE RELATED LETTER LETTERS TO THE EDITOR WATERTIGHT THEORY WSJ MAY 13 1993 9304160135 YY93 MM05 9305130158 930408 REVIEW & OUTLOOK EDITORIAL A JUDGE'S LAMENT A FEDERAL JUDGE HAS DECIDED TO BECOME A WHISTLEBLOWER HE IS BLOWING THE WHISTLE ON THE FEDERAL GOVERNMENT THE WAY IT MAKES ITS LAWS NOW AND THE CONSEQUENCES OF THOSE LAWS FOR AMERICAN CITIZENS READERS MAY RECALL THAT WE HAVE EDITORIALIZED HERE ABOUT BILL ELLEN A MARINE ENGINEER FROM MATHEWS VIRGINIA WHO IS NOW SERVING SIX MONTHS IN FEDERAL PRISON FOR RUNNING AFOUL OF THE GOVERNMENT'S WETLANDS POLICE AS A RESULT OF THOSE EDITORIALS OUR MAILBOX AND FAX TRAY REGULARLY FILL WITH SOMEONE'S ACCOUNT OF ANOTHER PERSON WHO IS FALLING DOWN THE WETLANDS RABBIT HOLE OTHERS WANT TO RETELL PAST STORIES OF EXPERIENCE WITH THE GOVERNMENT'S BYZANTINE WETLANDS REGULATIONS ARGUING THAT THE MANNER OF THEIR ENFORCEMENT VIOLATES COMMON SENSE IN 1990 OCIE MILLS AND HIS SON CAREY COMPLETED 21MONTH PRISON TERMS FOR DUMPING UNPOLLUTED SAND ON A LOT WITH THE STATE OF FLORIDA'S PERMISSION THE FEDS LED BY THE US ARMY CORPS OF ENGINEERS HAD ARRESTED THEM FOR FILLING IN WETLANDS SINCE HIS RELEASE MR MILLS HAS TRIED TO HAVE HIS CONVICTION OVERTURNED HE ARGUES IN PART THAT THE GOVERNMENT'S WETLANDS REGULATIONS ARE BUILT ON A SINGLE REFERENCE IN THE 1972 CLEAN WATER ACT THAT PROHIBITS PLACING POLLUTANTS WITHOUT A PERMIT INTO THE NAVIGABLE WATERS OF THE UNITED STATES THAT DEFINITION HAS NOW BEEN STRETCHED BEYOND REASON TO INCLUDE PATCHES OF EARTH THAT WOULD BARELY KEEP A RUBBER DUCK AFLOAT INCLUDING GLORIFIED POTHOLES AND MANMADE DITCHES LAST WEEK US DISTRICT COURT JUDGE ROGER VINSON OF THE NORTHERN FLORIDA DISTRICT REFUSED TO SET ASIDE THE CONVICTIONS OF MR MILLS AND HIS SON BUT HE DID ISSUE A BLISTERING ATTACK ON THE EXPANSIVE REGULATORY AUTHORITY THAT THE CORPS OF ENGINEERS HAS ASSUMED JUDGE VINSON MARVELED THAT THE CLEAN WATER ACT HAS BEEN TWISTED INTO WORDING WORTHY OF ALICE IN WONDERLAND SO THAT A LANDOWNER WHO PLACES CLEAN FILL DIRT ON DRY LAND MAY BE IMPRISONED FOR DISCHARGING POLLUTANTS INTO NAVIGABLE WATERS JUDGE VINSON SAID THE FLORIDA LAND THAT OCIE MILLS WAS TRYING TO BUILD A HOME ON WAS CLEARLY NOT A WETLAND HE DOES AGREE THAT CONGRESS HAD THE AUTHORITY TO DELEGATE THE DEFINITION OF NAVIGABLE WATERS TO THE CORPS EVEN IF THEIR DEFINITIONS ARE ABSURD BUT HE WARNS IT IS DANGEROUS FOR CONGRESS TO ABDICATE ITS POWER TO DEFINE A FELONY TO AN UNELECTED ADMINISTRATIVE AGENCY THESE CONCLUDING WORDS OF JUDGE VINSON ARE WORTH QUOTING AT LENGTH A JURISPRUDENCE WHICH ALLOWS CONGRESS TO IMPLIEDLY DELEGATE ITS CRIMINAL LAWMAKING AUTHORITY TO A REGULATORY AGENCY SUCH AS THE ARMY CORPS SO LONG AS CONGRESS PROVIDES AN INTELLIGIBLE PRINCIPLE' TO GUIDE THAT AGENCY IS ENOUGH TO MAKE ANY JUDGE PAUSE AND QUESTION WHAT HAS HAPPENED DEFERENT AND MINIMAL JUDICIAL REVIEW OF CONGRESS'S TRANSFER OF ITS CRIMINAL LAWMAKING FUNCTION TO OTHER BODIES IN OTHER BRANCHES CALLS INTO QUESTION THE VITALITY OF THE TRIPARTITE SYSTEM ESTABLISHED BY OUR CONSTITUTION IT ALSO CALLS INTO QUESTION THE NEXUS THAT MUST EXIST BETWEEN THE LAW SO APPLIED AND SIMPLE LOGIC AND COMMON SENSE YET THAT SEEMS TO BE THE STATE OF THE LAW SINCE THIS COURT MUST APPLY THE LAW AS IT EXISTS AND CANNOT CHANGE IT THERE IS NOTHING FURTHER THAT CAN BE DONE AT THIS LEVEL THE JUDGE'S LAMENT GOES A LONG WAY TOWARD EXPLAINING THE EXPLOSION OF INTEREST IN PROPERTY RIGHTS IN LEGISLATURES ACROSS THE COUNTRY BILLS TO PREVENT ARBITRARY TAKINGS OF PROPERTY HAVE BEEN INTRODUCED IN CONGRESS AND IN 21 STATES THE EXPERIENCE OF OCIE MILLS AND OTHERS PROMPTED BOTH HOUSES OF THE FLORIDA LEGISLATURE TO PASS A BILL ORDERING A STUDY OF HOW ENVIRONMENTAL REGULATION CAN NEGATE PROPERTY RIGHTS NEXT WEDNESDAY A HOUSE PUBLIC WORKS SUBCOMMITTEE CHAIRED BY OHIO REP DOUGLAS APPLEGATE WILL BEGIN HEARINGS ON THE REAUTHORIZATION OF THE CLEAN WATER ACT THAT SPAWNED THE CORPS' NIGHTMARISH WETLANDS REGS IT WOULD BE NICE TO THINK THAT THE PROBLEMS JUDGE VINSON HAS IDENTIFIED WILL BE GIVEN THE ATTENTION OF THE COMMITTEE'S MEMBERS SEE RELATED LETTER LETTERS TO THE EDITOR ARMY ENGINEER CORP DOING THE BEST IT CAN WSJ MAY 13 1993 9304080110 YY93 MM05 9305120177 930512 LEISURE & ARTS AN INTERACTIVE AQUARIUM BY TESSA DECARLO ORINDA CALIF SCHOOLS OF BRIGHT FISH GLIDE THROUGH THE FRONDS OF UNDERWATER FERNS A SEA ANEMONE LAZILY WAVES ITS TENTACLES A LARGE RED FISH WITH A RIPPLING RAINBOW TAIL NIBBLES FLECKS OF FOOD THAT DRIFT DOWN THROUGH THE WATER THE SETTING ISN'T AN AQUARIUM HOWEVER BUT A CONFERENCE ROOM AT MAXIS A SMALL NORTHERN CALIFORNIA SOFTWARE COMPANY AND THESE FISH ARE SWIMMING AROUND INSIDE A COMPUTER THEY ARE SPECIMENS OF ARTIFICIAL LIFE SPAWNED BY A NEW TOY THAT PUTS VAST COMPUTER POWER AND ADVANCED BIOTECHNOLOGY TO RESOLUTELY FANCIFUL USE IN RUSSIA THE MOST SERIOUS SCIENTISTS ARE WORKING FOR INDUSTRY EXPLAINS PSYCHOLOGIST VLADIMIR POKHILKO ONE OF THE TOY'S INVENTORS WE DECIDED TO HAVE SERIOUS SCIENTISTS MAKE SOMETHING JUST FOR PEOPLE FOR ENTERTAINMENT FOR THE HUMAN SOUL THE RESULT IS ELFISH SHORT FOR ELECTRONIC FISH A PERSONALCOMPUTER PROGRAM THAT ARRIVES IN STORES THIS MONTH AT 5995 IT IS NOT A GAME THERE ARE NO WINNERS OR LOSERS NO POINTS SCORES OR LEVELS BUT ENTERTAINMENT SOFTWARE THAT COMBINES ART SCIENCE TECHNOLOGY AND LIFE SO YOU CAN CREATE LIVING ART SO SAYS MAXIS PUBLISHER OF ELFISH AND OTHER PRODUCTS INCLUDING SIMCITY AND SIMEARTH SIMULATION PROGRAMS THAT HAVE PLAYERS CREATING AND MANAGING THEIR OWN CITY OR PLANET ELFISH FITS RIGHT INTO THE COMPANY'S SPECIALTY OF SOFTWARE TOYS THAT EMPHASIZE EXPLORATION AND SOPHISTICATED TECHNOLOGY RATHER THAN THE USUAL COMPUTERGAME STAPLES OF LINEAR PLAY AND SIMULATED VIOLENCE THE FACT THAT THERE'S NOTHING TO ELFISH' IN TERMS OF GAME PLAY IS ONE OF ITS BEST FEATURES SAYS CARTER LIPSCOMB MAXIS'S TECHNICALSUPPORT MANAGER AND AN ELFISH FAN POINTLESSNESS IS PART OF THE CHARM ELFISH WAS CREATED BY ANIMATEK A VENTURE THAT UNITES RUSSIAN SCIENCE AND AMERICAN FUNDING AND COMPUTER HARDWARE THE INITIAL INSPIRATION CAME FROM MR POKHILKO AND ALEXEY PAJITNOV THE MATHEMATICIAN WHO INVENTED THE POPULAR COMPUTER GAME TETRIS THE TWO MUSCOVITES SET OUT TO CREATE VISUAL PLAYTHINGS BASED ON GENETIC ALGORITHMS COMPLEX MATHEMATICAL FORMULAS THAT CHOP UP AND RECOMBINE STRINGS OF DATA MUCH THE WAY GENETIC INFORMATION ENCODED IN DNA IN LIVING ORGANISMS IS SHUFFLED WHEN THE ORGANISMS REPRODUCE THE RUSSIANS STARTED WITH FLOWERS AND THEN MOVED ON TO FISH BECAUSE THEY COULD MOVE OUR MAIN GOAL WAS AESTHETIC TO ALLOW PEOPLE TO CREATE A DYNAMIC NOT STATIC COMPOSITION SAYS MR POKHILKO WHO NOW LIVES IN PALO ALTO CALIF IT TOOK DOZENS OF RUSSIAN SCIENTISTS SEVERAL YEARS BUT EVENTUALLY ANIMATEK PRODUCED ELFISH WHICH LETS USERS BREED FISH OF ALL SHAPES AND COLORS IN A SEMIRANDOM PROCESS THAT DUPLICATES REAL LIFE THE ACTUAL ACT OF REPRODUCTION TAKES PLACE OFFSTAGE BUT THE PROGENY POP UP ONSCREEN IN A DIZZYING ARRAY OF SIZES HUES AND FORMS GENETIC VARIATION IN EITHER SHAPE OR COLOR CAN BE INCREASED OR DECREASED BY ADJUSTING A RADIATION GAUGE PUSH VARIATION TO THE MAXIMUM AND THE RESULTING FISH ARE STRANGE INDEED THE PROGRAM USUALLY CLASSIFIES THEM AS MUTANTS HOWEVER AND RENDERS THEM STERILE YOU'RE NOT ALLOWED TO DO ANYTHING FURTHER WITH THEM MR POKHILKO EXPLAINS ARTIFICIAL GENETIC ALGORITHMS ARE SO POWERFUL THAT IF YOU BREED MUTANTS VERY QUICKLY YOU GO OUT OF THE FISH FIELD YOU HAVE CHAIRS AND SHOES BUT NOT FISH TO ANIMATE THE FISH YOU'VE BRED ELFISH FITS THE CHOSEN SPECIMEN INTO DETAILED FISHMOVEMENT PROGRAMMING INVOLVING AS MANY AS 256 ANIMATION FRAMES THEN YOU CAN SET IT SWIMMING IN ONE OF THE READYMADE TANKS THE PROGRAM PROVIDES OR MAKE YOUR OWN USING THE LONG MENU OF BACKDROPS GRAVELS SEAWEEDS SHELLS AND ARCHITECTURAL GEWGAWS THERE ARE ALSO ANIMATED PROPS INCLUDING A LAUGHING PIRATE SKELETON AND A SWIPING CAT'S PAW GRAPHICS FROM OTHER PROGRAMS CAN BE IMPORTED INTO THE TANKS SOME MAXIS PRODUCT TESTERS HAD THEIR FISH SWIMMING AROUND CINDY CRAWFORD AND WEDDINGDAY BARBIE ALL THIS REQUIRES TREMENDOUS COMPUTING POWER SO ELFISH WORKS BEST ON THE NEWEST MOST POWERFUL HOME COMPUTERS THOSE WITH AT LEAST FOUR MEGABYTES OF RAM A SINGLE ANIMATED FISH CAN TAKE UP A MEGABYTE OF COMPUTER MEMORY MORE THAN 140 TIMES THE SPACE THIS ARTICLE OCCUPIES ONLY A FEW YEARS AGO WHEN THE 286MODEL PERSONAL COMPUTER WAS THE TOP OF THE LINE WE BELIEVED NOBODY COULD PUBLISH ELFISH' SAYS MR POKHILKO BECAUSE THERE WAS NOT YET A COMPUTER IN THE WORLD THAT COULD RUN THE PROGRAM BUT NOW 286S HAVE GIVEN WAY TO 386S WHICH ARE IN TURN BEING PUSHED ASIDE BY 486S AND AN EVEN MIGHTIER MODEL IS ABOUT TO BE RELEASED PEOPLE NEED ELFISH' MR POKHILKO SAYS TO UNDERSTAND HOW POWERFUL THEIR COMPUTER IS OTHER ELFISH FEATURES INCLUDE RANDOMLY GENERATED MUSIC IN AN ASSORTMENT OF STYLES PROGRAMMING THAT MAKES FISH SWIM IN SCHOOLS EAT WHEN FED AND DART FOR COVER WHEN THE KEYBOARD SPACE BAR IS RAPPED AND A COMPUTER BULLETIN BOARD WHERE USERS CAN DISPLAY AND TRADE FISH TANKS AND MUSIC BUT PERHAPS THE TOY'S BEST TRICK IS ITS POWER TO TRANSFORM JUST ABOUT ANYTHING INTO A FISH IMPORT A BATCH OF COMPUTER CODE THAT STARTED OUT AS A REPORT OR A TAX RETURN INTO ELFISH AND IT GIVES THE DATA A PISCINE INTERPRETATION THIS IS POSSIBLE BECAUSE OF THE UNDERLYING UNIVERSALITY OF ALL PROGRAM CODE LOVE LETTERS SPREAD SHEETS GRAPHICS THEY'RE ALL MADE OF STREAMS OF BINARY NUMBERS ZEROES AND ONES WHICH ELFISH IS PROGRAMMED TO ANALYZE AS SOMETHING SOMEHOW IN SOME WAY PISCATORIAL LOTUS 123 WORD PERFECT TURBOTAX THEY ALL BECOME FODDER FOR FISH ROGER JOHNSEN THE MAXIS STAFFER WHO FIRST DISCOVERED THIS CAPABILITY REPORTS THAT HE AND HIS COLLEAGUES HAVE FED ELFISH EVERYTHING FROM THE GETTYSBURG ADDRESS TO DEPARTMENTAL BUDGETS BOOM YOU GET THESE REALLY WILDLOOKING THINGS HE SAYS HIS COLLEAGUE MR LIPSCOMB HAS A COLLECTION OF REAL FISH AT HOME BUT ELFISH IS SPOILING HIM ALGAE DOESN'T APPEAR ON THE GLASS HE SAYS YUCK DOESN'T APPEAR ON THE FISH THE HIGHMAINTENANCE THINGS ABOUT BEING A FISH OWNER AREN'T INCLUDED BEST OF ALL ARE THE FISH THEMSELVES I CAN CREATE PRETTIER ONES HERE AT WORK THAN I HAVE AT HOME HE SAYS IT'S NOT AS EXPENSIVE AND THEY DON'T EVER DIE WHEN I GET TIRED OF THEM I CAN JUST SAVE THEM TO DISK MS DECARLO IS A WRITER IN NAPA VALLEY CALIF 9305120176 930512 MARKETING & MEDIA NEWS CORP PROFIT INCREASED SHARPLY IN MARCH QUARTER BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEWS CORP SAID NET INCOME MORE THAN DOUBLED IN THE FISCAL THIRD QUARTER PARTLY REFLECTING IMPROVED RESULTS IN ITS NEWSPAPER MAGAZINE AND FREESTANDING INSERT AND TELEVISION OPERATIONS NET FOR THE QUARTER ENDED MARCH 31 ROSE TO 1907 MILLION AUSTRALIAN DOLLARS US1339 MILLION FROM A819 MILLION A YEAR EARLIER THE 1993 QUARTER INCLUDED A123 MILLION IN SPECIAL ITEMS WORLDWIDE REVENUE ROSE TO A264 MILLION FROM A246 BILLION IN THE FIRST NINE MONTHS EARNINGS BEFORE SPECIAL ITEMS WAS A6685 MILLION COMPARED WITH A3338 MILLION A YEAR AGO REVENUE ROSE 3 TO A8 BILLION FROM A77 BILLION NEWS CORP REPORTED LOWER EARNINGS IN FILMED ENTERTAINMENT AND BOOK PUBLISHING OPERATIONS WHILE PROFIT FROM EQUITYACCOUNTED INVESTMENTS CONTRIBUTED A122 MILLION TO OPERATING PROFIT COMPARED WITH A LOSS OF A768 MILLION A YEAR AGO AS A RESULT OF NEWS CORP'S CONTINUED REDUCTION IN NET DEBT LEVELS AND FURTHER DECLINES IN WORLDWIDE INTEREST RATES INTEREST EXPENSES FELL 22 TO A5678 MILLION FROM A7282 MILLION A YEAR EARLIER IN THE US PROFIT FROM THE COMPANY'S TWO TELEVISION BUSINESSES FOX BROADCASTING CORP AND FOX TELEVISION STATIONS ROSE ALMOST 20 MAINLY AS A RESULT OF HIGHER ADVERTISING REVENUE AND OPERATING MARGINS AND DESPITE THE SUCCESS OF THE FILM HOME ALONE 2 LOST IN NEW YORK PROFITS AT TWENTIETH CENTURY FOX FILM WERE OFF SIGNIFICANTLY NEWS CORP SAID THE COMPANY SAID ITS TV GUIDE AND FREESTANDING INSERTS BUSINESS REPORTED STRONG PROFIT GAINS AT TV GUIDE OPERATING PROFIT JUMPED 27 REFLECTING INCREASES IN ADVERTISING AND CIRCULATION REVENUE COST SAVINGS FROM LOWER PRINTING COSTS IN THE COMPANY'S FREESTANDING INSERTS OPERATIONS LED TO HIGHER PROFIT DESPITE LOWER SELLING PRICES NEWS CORP SAID RESULTS AT HARPERCOLLINS WERE LOWER FOR THE NINE MONTHS BUT SHOWED MARGINAL IMPROVEMENT IN THE 1993 THIRD QUARTER 9305120175 930512 FINANCING BUSINESS WILLIAM COS WILLIAMS COS SAID IT HAS EXTENDED THE REDEMPTION DATE FOR ITS 3875 CONVERTIBLE EXCHANGEABLE PREFERRED STOCK TO JUNE 10 FROM MAY 5 THROUGH JUNE 10 THE PREFERRED STOCK MAY BE CONVERTED INTO SHARES OF COMMON STOCK OF THE COMPANY AT A RATE OF 12739 COMMON SHARES FOR EACH PREFERRED SHARE WILLIAMS A NATURAL GAS PIPELINE CONCERN BASED IN TULSA OKLA ALSO WILL REDEEM SHARES OF PREFERRED STOCK FOR A TOTAL REDEMPTION PRICE OF 53078472 A SHARE 9305120174 930512 TWO BROKERAGE FIRMS FACE SEC FRAUD SUIT OVER OPINION LETTERS NEW YORK THE SECURITIES AND EXCHANGE COMMISSION SUED TWO SMALL BROKERAGE FIRMS ACCUSING THEM OF ISSUING PHONY OPINION LETTERS THAT HELPED COOPER COS AVOID RESETTING THE INTEREST RATE ON 200 MILLION IN DEBT COOPER BASED IN FORT LEE NJ MAKES CONTACT LENSES AND SURGICAL EQUIPMENT AND OPERATES PSYCHIATRIC HOSPITALS THE SEC LAWSUIT IS A RARE EXAMPLE OF AN ALLEGATION OF SECURITIES FRAUD INVOLVING AN OPINION LETTER ISSUED BY A FINANCIAL ADVISER THE SEC ALLEGES THAT RUSSO SECURITIES INC STATEN ISLAND NY FERDINAND RUSSO ITS CHIEF FINANCIAL OFFICER MASCERA & CO INC MANHATTAN AND LAWRENCE MASCERA A PRINCIPAL IN MASCERA ALL COMMITTED FRAUD BY WRITING OPINION LETTERS SAYING THAT COOPER DIDN'T HAVE TO RAISE THE INTEREST RATE ON ITS 10625 CONVERTIBLE SUBORDINATED RESET DEBENTURES DUE 2005 THE NOTES HAD TO BE RESET IF THE MARKET VALUE ON A CERTAIN DATE WASN'T 75 OF THE FACE VALUE THE CASE IS RELATED TO AN SEC SUIT FILED LAST YEAR AGAINST COOPER AND TWO TOP OFFICERS COOPER HAS DENIED COMMITTING FRAUD TO AVOID RESETTING THE NOTES COOPER AND ITS FORMER COCHAIRMAN GARY A SINGER ALSO FACE CRIMINAL CHARGES FOR ALLEGED INSIDER TRADING IN JUNK BONDS THAT TRIAL IS TO BEGIN NOV 1 ACCORDING TO THE SEC LAWSUIT COOPER TURNED TO THE TWO SMALL FIRMS AFTER LEARNING THAT AN OPINION LETTER FROM A NATIONALLY RECOGNIZED FIRM WOULD COST 100000 THE SEC ALLEGES THAT MR RUSSO DIDN'T REVEAL IN WRITING THE OPINION LETTER THAT COOPER HAD AN INTEREST IN HIS FIRM AND WAS AMONG ITS LARGEST CLIENTS THE COMMISSION ALSO ALLEGES THAT MR RUSSO CREATED FALSE RECORDS TO MAKE IT APPEAR THAT HE HAD DONE RESEARCH TO SUPPORT HIS OPINION MASCERA PROVIDED THE SECOND OPINION LETTER AS A FAVOR TO THE RUSSO FIRM SAID HERB JANICK AN SEC LAWYER HANDLING THE CASE THE LAWSUIT SEEKS AN INJUNCTION PREVENTING THE DEFENDANTS FROM VIOLATING SECURITIES LAWS AGAIN AS WELL AS UNSPECIFIED CIVIL PENALTIES RUSSO SECURITIES DENIES ANY WRONGDOING AND INTENDS TO VIGOROUSLY FIGHT THE ALLEGATIONS SAID ARTHUR G JAKOBY AN ATTORNEY AT HERRICK FEINSTEIN IN NEW YORK THE ATTORNEY FOR MR RUSSO DECLINED TO COMMENT ON THE ALLEGATIONS MR MASCERA ALSO DECLINED TO COMMENT ON BEHALF OF HIS FIRM OR HIMSELF 9305120173 930512 FINANCING BUSINESS CANADIAN NATIONAL RAILWAY CANADIAN NATIONAL RAILWAY MONTREAL SAID IT OFFERED 150 MILLION OF 10YEAR NOTES WITH AN ANNUAL INTEREST RATE OF 6625 AND 150 MILLION OF 30YEAR DEBENTURES WITH AN ANNUAL RATE OF 7625 SALOMON BROTHERS INC IS LEAD MANAGER CANADIAN NATIONAL OWNED BY THE CANADIAN GOVERNMENT WILL USE THE FUNDS TO REPAY SHORTTERM DEBT AND FOR GENERAL CORPORATE PURPOSES 9305120172 930512 FINANCING BUSINESS ALABAMA POWER CO ALABAMA POWER CO BIRMINGHAM ALA SAID IT AND THE INDUSTRIAL DEVELOPMENT BOARD OF THE TOWN OF WEST JEFFERSON ALA AND THE CITY OF EUTAW ALA CLOSED ON THE SALE OF 97 MILLION OF 605 POLLUTION CONTROL REVENUE REFUNDING BONDS TO MATURE MAY 1 2023 AS A RESULT OF THE CLOSING THE COMPANY WHICH IS A UNIT OF SOUTHERN CO BASED IN ATLANTA AND THE GOVERNMENT AUTHORITIES CONFIRMED THEIR JUNE 11 SCHEDULE TO REDEEM SEVERAL SERIES OF POLLUTION CONTROL REVENUE BONDS THEY ARE INDUSTRIAL DEVELOPMENT BOARD OF THE TOWN OF WEST JEFFERSON ALA 72 SERIES A BONDS DUE 2007 AND 7375 SERIES B BONDS DUE 2008 AND INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF EUTAW ALA 72 SERIES A BONDS DUE 2006 THE TWO SERIES A BONDS WILL BE REDEEMED AT 100 OF PRINCIPAL PLUS ACCRUED INTEREST THROUGH JUNE 10 THE SERIES B BONDS ARE TO BE REDEEMED AT 10050 OF PRINCIPAL PLUS ACCRUED INTEREST THROUGH THAT DATE 9305120171 930512 FINANCING BUSINESS BELL CANADA BELL CANADA MONTREAL SAID IT WILL OFFER 200 MILLION CANADIAN DOLLARS US1576 MILLION OF 10YEAR DEBENTURES IN EUROPE THE DEBENTURES TO MATURE JUNE 9 2003 WILL BE OFFERED AT 101875 WITH AN ANNUAL COUPON RATE OF 85 WOOD GUNDY INC IS LEAD UNDERWRITER PROCEEDS ARE TO BE USED FOR CAPITAL EXPENDITURES AND WORKING FUNDS BELL CANADA IS A UNIT OF BCE INC 9305120170 930512 PNC WILL BUY SEARS'S BUSINESS FOR MORTGAGES PITTSBURGH COMPANY TO PAY 328 MILLION BECOMING 4THLARGEST ORIGINATOR BY GABRIELLA STERN AND GREGORY A PATTERSON STAFF REPORTERS OF THE WALL STREET JOURNAL PNC BANK CORP QUADRUPLING THE SIZE OF ITS MORTGAGESERVICING BUSINESS AGREED TO ACQUIRE SEARS ROEBUCK & CO'S MORTGAGEBANKING UNIT FOR 328 MILLION PNC SAID IT WILL BECOME THE NATION'S FOURTHLARGEST MORTGAGELOAN ORIGINATOR AND THE 10THLARGEST MORTGAGE SERVICER THE PITTSBURGH COMPANY WILL THUS JOIN THE RANKS OF GIANTS FLEET FINANCIAL GROUP COUNTRYWIDE CREDIT INDUSTRIES NORWEST CORP AS WELL AS GENERAL MOTORS CORP AND FORD MOTOR CO BOTH OF WHICH HAVE MORTGAGE UNITS THE ACQUISITION MAKES PNC A MAJOR PLAYER IN THE MORTGAGE BUSINESS SAID ANALYST DENNIS F SHEA OF MORGAN STANLEY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY PNC COMMON CLOSED AT 32125 UP 1 SEARS CLOSED AT 5450 UP 375 CENTS PNC WHICH HAS 511 BILLION IN ASSETS DESCRIBED THE PRICE AS ATTRACTIVE SAYING ITS SHAREHOLDERS WILL SEE IMMEDIATE BENEFITS FROM THE ACQUISITION A PNC SPOKESMAN SAID THAT BASED ON VERY CONSERVATIVE ASSUMPTIONS THE ACQUISITION COULD ADD 12 CENTS A SHARE TO 1994 EARNINGS INDEED SOME ANALYSTS SAID PNC GOT A BARGAIN IT LOOKS LIKE AN EXTRAORDINARILY CHEAP PRICE SAID JONATHAN GRAY AN ANALYST WITH SANFORD C BERNSTEIN & CO MR GRAY SAID HE HASN'T SEEN DETAILS OF THE AGREEMENT BUT SAID HE BELIEVES THE COLDWELL BANKER UNIT SHOULD HAVE FETCHED AT LEAST 400 MILLION PRETAX BASED ON THE SIZE OF ITS SERVICING PORTFOLIO SEARS OFFICIALS SAID ONLY THAT THE PRICE WAS IN THE UPPER RANGE OF THEIR EXPECTATIONS A SEARS SPOKESMAN SAID CLOSING ADJUSTMENTS COULD BOOST THE FINAL PRICE BY AS MUCH AS 50 MILLION THE PNC SPOKESMAN SAID ADJUSTMENTS OF 15 MILLION TO 25 MILLION SEEM MUCH MORE LIKELY ADDING THAT ANY ADJUSTMENTS WOULD DEPEND ON A CHANGE IN THE VALUE OF SEARS'S LOAN PORTFOLIO AN INCREASE IN THE VALUE WOULD BRING AN INCREASE IN THE PRICE BASED ON A FORMULA THE PNC SPOKESMAN SAID THE SEARS SPOKESMAN ADDED THAT SEARS IS COMFORTABLE WITH THE TRANSACTION BECAUSE IT WILL RECEIVE A CASH PAYMENT FROM A SOLID AND REPUTABLE PURCHASER WE BELIEVE WE HAVE THE BEST DEAL WHICH REPRESENTS THE FULL MARKET VALUE OF THE MORTGAGE BANKING UNIT THE SPOKESMAN SAID THE CHICAGOBASED RETAIL AND FINANCIAL SERVICES CONCERN SAID IT RECEIVED INQUIRIES FROM 30 SERIOUS AND QUALIFIED POTENTIAL BUYERS ACQUISITION OF THE SEARS UNIT BRINGS A 272 BILLION LOANSERVICING PORTFOLIO TO PNC MORTGAGE CO'S 9 BILLION PORTFOLIO PNC'S MORTGAGE UNIT ORIGINATED 19 BILLION IN MORTGAGES IN 1992 THE SEARS UNIT GENERATED 118 BILLION IN MORTGAGE LOANS LAST YEAR SEVENTH IN THE NATION IN THAT CATEGORY SEARS WAS 15TH IN THE NATION LAST YEAR IN LOANSERVICING VOLUME SEARS MORTGAGE BANKING GROUP WHICH INCLUDES SEARS SAVINGS BANK A FEDERALLY CHARTERED SAVINGS BANK WITH 67 BILLION IN ASSETS MOST OF THEM RESIDENTIAL MORTGAGE LOANS HAD ASSETS OF 87 BILLION AND NET INCOME OF 518 MILLION IN 1992 THE SALE IS PART OF SEARS'S MASSIVE RESTRUCTURING CALLING FOR THE SALE OF 20 OF ITS ALLSTATE INSURANCE UNIT AND ITS ENTIRE COLDWELL BANKER UNIT IN ADDITION TO THE SALE OF 20 OF DEAN WITTER OPERATIONS AND A SPINOFF OF THE REST OF DEAN WITTER TO SEARS'S SHAREHOLDERS SEARS IS STILL ON TARGET TO REAP 3 BILLION FROM VARIOUS PLANNED ASSET DIVESTITURES IT ALREADY HAS GARNERED 755 MILLION FROM THE DEAN WITTER PUBLIC OFFERING AND COULD EARN MORE THAN 2 BILLION FROM THE ALLSTATE PUBLIC OFFERING SET FOR NEXT MONTH SEARS SAID PROCEEDS WILL GO TO PAY OFF DEBT YESTERDAY'S TRANSACTION DIDN'T INCLUDE THE RESIDENTIAL REAL ESTATE PORTION OF COLDWELL BANKER WHICH SEARS ALSO PLANS TO SELL WHILE SEARS WON'T TALK ABOUT THOSE NEGOTIATIONS THE COMPANY SAID IT WILL COMPLETE ALL ITS DIVESTITURES AND SPINOFFS BY THE END OF THE YEAR 9305120169 930512 DIVIDEND NEWS MOORE PRODUCTS CO MOORE PRODUCTS CO SPRING HOUSE PA SAID ITS BOARD DECIDED NOT TO PAY ITS FIRSTQUARTER DIVIDEND CITING RECENT OPERATING LOSSES AND WEAKNESS IN ORDERS THE MAKER OF INDUSTRIAL INSTRUMENTS AND CONTROLS LAST PAID ITS QUARTERLY DIVIDEND OF SIX CENTS A COMMON SHARE ON MARCH 1 A SPOKESMAN SAID THE BOARD WILL EVALUATE THE COMPANY'S DIVIDEND POLICY EACH QUARTER IN LIGHT OF OPERATING RESULTS 9305120168 930512 LETTERS TO THE EDITOR SMALLBUSINESS OWNERS BACK MEDICAL REFORM FROM THE COMMENTS OF CLINTON ADMINISTRATION SOURCES QUOTED IN YOUR MARCH 29 POLITICS & POLICY COLUMN ONE COULD CONCLUDE THAT THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS IS AGAINST EFFORTS TO REFORM THE NATION'S HEALTH INSURANCE AND HEALTHCARE DELIVERY SYSTEMS IN FACT NFIB HAS BEEN AT THE FOREFRONT OF EFFORTS TO REFORM THE HEALTHCARE SYSTEM FOR SEVERAL YEARS SURVEYS CONDUCTED AMONG THE MORE THAN 600000 SMALLBUSINESS OWNERS WHO ARE MEMBERS OF NFIB INDICATE THAT THE COST OF HEALTH INSURANCE IS THEIR NUMBER ONE PROBLEM THOSE SURVEYS ALSO TELL US THAT TWOTHIRDS OF OUR MEMBERS PROVIDE INSURANCE TO THEIR EMPLOYEES AND MANY MORE WOULD DO SO IF THEY COULD AFFORD IT ONE SUCH SURVEY FOUND THAT MORE THAN 90 OF THOSE TAKING 70000 OR MORE OUT OF THEIR BUSINESS ANNUALLY PROVIDED HEALTH INSURANCE TO THEIR EMPLOYEES ONLY ONETHIRD OF THOSE TAKING 20000 OR LESS OUT OF THEIR BUSINESS DID SO THE GOAL OF SMALLBUSINESS OWNERS IS TO STAY IN BUSINESS SO THAT THEY CAN EARN A LIVING FOR THEMSELVES AND THEIR FAMILIES AND PROVIDE JOBS FOR OTHERS FORCING THOSE WHO CANNOT AFFORD IT TO PROVIDE INSURANCE WILL SIMPLY PUT THEM OUT OF BUSINESS A 1990 SURVEY BY THE NFIB FOUNDATION ASKED SMALLBUSINESS OWNERS HOW THEY WOULD RESPOND TO A GOVERNMENT REQUIREMENT THAT THEY PAY 150 A MONTH FOR HEALTH INSURANCE COVERAGE FOR THEIR EMPLOYEES OF THOSE RESPONDING 24 SAID THEY WOULD GET OUT OF BUSINESS WHILE 26 SAID THEY WOULD LET ALL OF THEIR EMPLOYEES GO AND CONTINUE TO OPERATE NFIB SUPPORTS THE CONCEPT OF MANAGED COMPETITION AND WE LOOK FORWARD TO A HEALTHCARE SOLUTION BASED ON THAT FORMULA WE BELIEVE IT CAN AND MUST BE ACCOMPLISHED BY FOCUSING ON INDIVIDUAL RESPONSIBILITY AND A LIMITED ROLE FOR GOVERNMENT 9305120167 930512 MILITARY OFFICERS OPPOSE LIFTING THE BAN ON GAYS WASHINGTON TWO OF THE COUNTRY'S BETTERKNOWN MILITARY FIGURES CAME OUT STRONGLY AGAINST LIFTING THE BAN ON GAYS IN THE MILITARY AND ONE OF THEM NOTED THAT HE HAS A HOMOSEXUAL SON RETIRED ARMY GEN H NORMAN SCHWARZKOPF THE TOP US COMMANDER IN THE PERSIAN GULF WAR TOLD THE SENATE ARMED SERVICES COMMITTEE THAT IN EVERY CASE THAT I'M FAMILIAR WITH AND THERE ARE MANY WHEN IT BECAME KNOWN IN A UNIT THAT SOMEONE WAS OPENLY HOMOSEXUAL POLARIZATION OCCURRED VIOLENCE SOMETIMES FOLLOWED MORALE BROKE DOWN AND UNIT EFFECTIVENESS SUFFERED FOLLOWING HIM MARINE COL FRED PECK WHO BECAME FAMILIAR IN RECENT MONTHS AS THE US MILITARY'S SPOKESMAN IN SOMALIA SAID THAT ONE OF HIS THREE SONS IS HOMOSEXUAL I LOVE HIM SAID COL PECK BUT HE SHOULD NOT SERVE IN THE MILITARY THE TWO OFFICERS' TESTIMONY CAME AS PART OF A CONTINUING SERIES OF CONGRESSIONAL HEARINGS ON LIFTING THE GAY BAN PRESIDENT CLINTON HAS ORDERED THE DEFENSE DEPARTMENT TO FIGURE OUT HOW TO LIFT THE BAN BY JULY 15 BUT MANY IN CONGRESS CONTINUE TO OPPOSE DOING THAT 9305120166 930512 HEALTHTRUST TO REDEEM BONDS NASHVILLE TENN HEALTHTRUSTTHE HOSPITAL CO SAID IT INTENDS TO REDEEM A VARIETY OF BONDS AROUND JUNE 1 THE HOSPITAL COMPANY SAID IT PLANS TO REDEEM 130 MILLION PRINCIPAL AMOUNT OF ITS 1125 GUARANTEED SUBORDINATED DEBENTURES DUE 2002 110 MILLION PRINCIPAL AMOUNT OF ITS ZEROCOUPON GUARANTEED SUBORDINATED DEBENTURES DUE 2002 255 MILLION PRINCIPAL AMOUNT OF ITS ZEROCOUPON SENIOR SUBORDINATED DEBENTURES DUE 1999 AND 37 MILLION PRINCIPAL AMOUNT OF ITS 1525 SENIOR SUBORDINATED DEBENTURES DUE 1999 HEALTHTRUST SAID IT INTENDS TO FINANCE THE REDEMPTION WITH BANK BORROWINGS A PORTION OF THE PROCEEDS FROM ITS RECENT PUBLIC OFFERING OF 875 SUBORDINATED DEBENTURES DUE 2005 AND AVAILABLE CASH 9305120165 930512 INTERNATIONAL AUSTRALIAN SELLS WESTPAC STAKE TO LEND LEASE BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA KERRY PACKER THE AUSTRALIAN MEDIA MAGNATE BAILED OUT OF WESTPAC BANKING CORP THE COUNTRY'S OLDEST BANK BY SELLING MOST OF HIS 10 STAKE TO LEND LEASE CORP AN AUSTRALIAN PROPERTY AND FINANCIAL SERVICES COMPANY LEND LEASE SAID IT BOUGHT 140 MILLION SHARES OR ABOUT 8 OF WESTPAC FROM MR PACKER FOR 490 MILLION AUSTRALIAN DOLLARS US345 MILLION OR A350 A SHARE THE COMPANY SAID THAT COMBINED WITH WESTPAC SHARES IT ALREADY HOLDS THROUGH SUBSIDIARIES INCLUDING ITS INSURANCE UNIT MLC LIFE LTD IT NOW OWNS 995 OF WESTPAC FURTHER LEND LEASE SAID IT AGREED TO BUY AN ADDITIONAL 32 MILLION SHARES OR 2 OF THE BANK'S COMMON STOCK FROM MR PACKER AT THE SAME PERSHARE PRICE AND IT SIGNALED IT INTENDS TO INCREASE ITS WESTPAC STAKE TO 15 THAT WOULD MAKE PUBLICLY TRADED LEND LEASE EQUAL TO WESTPAC'S BIGGEST SHAREHOLDER AUSTRALIAN MUTUAL PROVIDENT SOCIETY THE COUNTRY'S LARGEST FUNDS MANAGER AND A LEND LEASE COMPETITOR WHICH ALSO HOLDS 15 OF WESTPAC UNDER RULES GOVERNING BANK OWNERSHIP IN AUSTRALIA INDIVIDUAL SHAREHOLDERS AREN'T ALLOWED TO OWN MORE THAN 10 OF A BANK WITHOUT APPROVAL FROM THE NATION'S TREASURER THOUGH SUCH STAKES ARE USUALLY LIMITED TO 15 LEND LEASE SAID IT HAS THE NECESSARY APPROVAL FROM CANBERRA BUT A LEND LEASE EXECUTIVE WOULDN'T SAY HOW IT INTENDS TO ACQUIRE THE REMAINDER FOR LEND LEASE THE WESTPAC ACQUISITION FULFILLS A LONGSTANDING AMBITION TO HAVE AN INTEREST IN BANKING FOR WESTPAC SADDLED WITH SOUR REALESTATE LOANS IT OFFERS A STABLE SHAREHOLDER WITH A REPUTATION FOR SOUND MANAGEMENT AND EXPERTISE IN SUCH PROBLEMATIC AREAS AS PROPERTY FOR MR PACKER A BILLIONAIRE IT ENDS HIS FORAY INTO AUSTRALIAN BANKING AND ADDS TO HIS REPUTATION AS A SAVVY INVESTOR IN NOVEMBER HE SNAPPED UP 10 OF WESTPAC IN THE FORM OF SHARES AND OPTIONS CONVERTIBLE INTO WESTPAC SHARES HE BECAME A DIRECTOR THEN RESIGNED AFTER A DISPUTE OVER THE BANK'S DIRECTION HE KEPT THE MARKET GUESSING BY ROLLING OVER HIS OPTIONS AND KEEPING QUIET MR PACKER SAID IN A STATEMENT YESTERDAY THOUGH HE HAD REGARDED THE WESTPAC STAKE AS A GOOD LONGTERM INVESTMENT LEND LEASE'S OFFER IS REASONABLE AND VALUES OUR HOLDING AT A100 MILLION MORE THAN IT COST 9305120164 930512 RETAILING EUROPE'S SMALLER FOOD SHOPS FACE FINIS BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS EUROPE'S BIG BOYS OF RETAILING ARE PUSHING MOM AND POP INTO EARLY RETIREMENT IN MOST OF EUROPE THE NUMBER OF SMALL AND MEDIUMSIZE STORES HAS FALLEN DRASTICALLY OVER THE PAST FIVE YEARS ACCORDING TO DATA COMPILED FOR THE WALL STREET JOURNAL BY MARKETRESEARCH FIRM AC NIELSEN CO DOWNTOWN AND CORNER STORES ARE THREATENED WITH EXTINCTION AS SUBURBAN SUPERSTORES SELLING EVERYTHING UNDER ONE ROOF FROM FOOD AND COSMETICS TO CLOTHING AND ELECTRONICS BECOME MORE POPULAR IN ITALY WHERE SUPERSTORES WERE LAUNCHED LATER THAN IN MOST OF EUROPE NIELSEN FOUND THAT THEIR NUMBER DOUBLED BETWEEN 1988 AND 1992 THE DEVELOPMENT WAS ALSO SWIFT IN AUSTRIA WHERE THEY ROSE BY 50 DURING THE SAME PERIOD TO PROTECT SMALL STORES FRENCH PRIME MINISTER EDOUARD BALLADUR HAS ORDERED A HALT ON AUTHORIZATIONS FOR NEW SUPERMARKETS LARGER THAN 1000 SQUARE METERS 10800 SQUARE FEET ROUGHLY 160 NEW PROJECTS ARE BLOCKED BY THE BAN WHICH IS DESIGNED TO SLOW THE GROWING BANKRUPTCIES OF SMALL AND MEDIUMSIZE STORES AND PRESERVE TRADITIONAL RETAILING IN TOWNS AND VILLAGES IN GERMANY THE RAPID CONCENTRATION OF RETAILING IN THE EASTERN PART OF THE COUNTRY HAS CAUSED SHORTAGES IN RURAL AREAS WHERE MANY SMALL LOCAL STORES THAT HAD BEEN SUBSIDIZED UNDER COMMUNISM HAVE GONE OUT OF BUSINESS A STUDY BEING PREPARED BY THE FOOD AND AGRICULTURE MINISTRY DISCLOSES THAT THE NUMBER OF CONSUMERS WITHOUT A STORE IN THEIR VILLAGE HAS MORE THAN DOUBLED SINCE UNIFICATION IN THE WEST WE COPED WITH THIS CHANGE GRADUALLY AND WITH A MUCH HIGHER LEVEL OF PROSPERITY SAYS JOACHIM WINKEL AT THE AGRICULTURE MINISTRY IN BONN HE SAYS THE SUPERSTORES PICKED THE RAISINS FROM THE CAKE IN THE EAST BY FOCUSING ON THE LUCRATIVE PERIPHERIES OF LARGE CITIES NOW BOTH LOCAL AND FEDERAL GOVERNMENTS ARE WORKING OUT PLANS TO SUPPLY THE COUNTRYSIDE AND REVITALIZE CITY CENTERS IN EAST AND WEST BESIDES TIGHTER RESTRICTIONS ON SUPERSTORE CONSTRUCTION THE FEDERAL GOVERNMENT RECENTLY ANNOUNCED THAT RURAL POST OFFICES WILL BE DEVELOPED AS SMALL SHOPPING AND SERVICE CENTERS THERE IS A LOT IN THE LAW ALREADY SAYS VERENA BOETTCHEN OF THE ASSOCIATION OF GERMAN RETAILERS A GROUP THAT HAS BEEN FIGHTING THE DEMISE OF SMALL AND MEDIUMSIZE STORES SINCE SUPERSTORES SPRUNG UP AROUND THE URBAN AREAS OF WESTERN EUROPE IN THE MID1960S LOCAL DECISION MAKERS JUST HAVE TO KNOW ABOUT IT AND FOLLOW IT INDEED MOST EUROPEAN GOVERNMENTS TRY TO ACCOMMODATE ENVIRONMENTAL CONCERNS MOVEMENTS TO REVIVE CITY CENTERS AND WORRIES ABOUT SMALL SHOPKEEPERS BY IMPOSING PLANNING AND BUILDING RESTRICTIONS FOR LARGE STORES IN BRITAIN AND THE NETHERLANDS SOCALLED GREEN BELTS OUTSIDE TOWNS AND CITIES ARE OFFLIMITS TO SUPERSTORES BELGIAN AND PORTUGUESE LOBBYING GROUPS HAVE ACHIEVED A BAN ON NEW STORES LARGER THAN 1500 SQUARE METERS IN GERMANY PERMITS FOR OUTLETS OF MORE THAN 1000 SQUARE METERS ARE DIFFICULT TO OBTAIN AND IN AUSTRIA WITH ONE OF THE HIGHEST DEGREES OF SUPERSTORE PENETRATION IN EUROPE THE PROBLEMS BEGIN WITH 600 SQUARE METERS ACCORDING TO MARTIN GOEBEL AN ANALYST WITH AWT CONSULTING GMBH IN VIENNA HE SAYS PERMITS FOR STORES LARGER THAN THAT ARE RARELY ISSUED ANYMORE REGULATIONS TEND TO BE STRICTER IN SOUTHERN EUROPE WHERE TRADITIONAL RETAILING HAS BEEN ERODED MORE SLOWLY THAN IN THE NORTH BUT EVEN THERE OLDFASHIONED CORNER STORES AND FAMILY BUSINESSES ARE SLOWLY GIVING WAY TO LARGER CHAINS THAT OFFER FOOD DRUGS AND SERVICES SUCH AS SHOE REPAIR IN ONE PLACE IN ITALY NIELSEN'S RESEARCH INDICATES THAT LICENSES AND BUILDING PERMITS ARE GRANTED BY REGIONAL COMMITTEES DOMINATED BY SMALL RETAILERS THUS THERE ARE STILL FEW BIG CHAINS BUT INCREASING PRESSURE BY SUPERSTORES AND INVESTORS IS EXPECTED TO RESULT IN MORE GIANT STORES OVER THE YEARS BESIDES LEGISLATION SUBSTANTIAL FURTHER GROWTH OF SUPERSTORES IS LIMITED BY URBAN LIFESTYLE IT'S A QUESTION OF MENTALITY SAYS MR GOEBEL DRIVING TO A MARKET TO STOCK UP WITH CHEAP BOXES IS NOT IMPORTANT ENOUGH AS A MOTIVATION HE SAYS ALLUDING TO THE LARGE FAMILYSIZE FOOD PACKAGES SOLD IN MEGASTORES MANY CONSUMERS FIND THE ANONYMITY AND OVERWHELMING SIZE OF SUCH STORES A GREATER DETERRENT THAN HIGH GASOLINE PRICES OR ENVIRONMENTAL DAMAGE CAUSED BY DRIVING MEGAWAREHOUSES ALSO FAIL TO ADDRESS THE NEEDS OF THE ELDERLY IMMOBILE AND POORER SHOPPERS WHO CANNOT DRIVE OR AFFORD A CAR IT'S HORRIBLE NOT TO GET ANY HELP IF ONE CAN'T FIND ANYTHING SAYS GISELARUTH VON ZURMUEHLEN AN 84YEAROLD FROM HAMBURG NOBODY SAYS GOOD MORNING' EVEN IF ONE HAS BEEN TO THE STORE SEVERAL TIMES BEFORE SAYS THE PENSIONER WHO REMEMBERS A TIME WHEN HER NEIGHBORHOOD SHOP CALLED TO TELL HER THAT THE FIRST CHOCOLATE EASTER BUNNIES OR THE CHRISTMAS GOOSE HAD ARRIVED SMALL SHOPKEEPERS HAVE BEGUN TO CASH IN ON SUCH FEELINGS BY FORMING BUYING COOPERATIVES OR JOINING RETAIL CHAINS THAT PROVIDE THEM WITH BRANDNAME PRODUCTS AND GUARANTEE DISTRIBUTION OF FRESH FRUIT AND VEGETABLES THE SUCCESS OF UPSCALE SPECIALTY STORES WHICH OFFER REGIONAL DISHES AND PRECOOKED FOODS SHOWS THAT SOME SMALL RETAILERS BEAT THE LARGE CHAINS WITH SUPERIOR QUALITY PERSONALIZED SERVICE OR LONGER OPENING HOURS IN COUNTRIES WHERE SHOPPING HOURS AREN'T TIGHTLY REGULATED STORES RUN BY IMMIGRANTS ARE FLOURISHING THE SAVVY STOREOWNERS TYPICALLY COME FROM ASIAN OR MIDDLE EASTERN COUNTRIES WITH A TRADITION OF NIGHTTIME SHOPPING ON THE WHOLE SUPERSTORE CHAINS DON'T FEEL THREATENED BY THE NEW ASSERTIVENESS OF SMALL RETAILERS OF COURSE WE TAKE EVERY NEW LOCATION WE CAN GET SAYS FERDINAND HACKER CHAIRMAN OF AUSTRIA'S JULIUS MEINL AG BUT IN AUSTRIA THE EUPHORIA IS OVER ANYWAY THE MARKET IS SATURATED HE ADDS BESIDES ITS SMALL AND AND MEDIUMSIZE GROCERY OUTLETS MEINL OPERATES 23 PAMPAM SUPERSTORES ALL OVER AUSTRIA AND IS PLANNING TO OPEN PAMPAMS IN EASTERN EUROPE AS WELL VERY FEW RETAIL ORGANIZATIONS STAND ONLY ON ONE LEG SAYS A SPOKESMAN FOR SPAR HANDELS AG IN WIESBADEN GERMANY THE PEAK OF THE EXPANSION HERE HAS BEEN REACHED HE SAYS THE COMPANY HAS REALIZED THAT CONSUMERS WILL ALWAYS WANT PRODUCT VARIETY AND PERSONAL SERVICE THUS THERE ARE ALSO SMALLER SPAR STORES AS WELL AS SPAROWNED HARDWARE AND DRUGSTORES AND NETTO A DISCOUNT STORE SUPERSTORES ARE ALSO EXPANDING INTO MARKETS WITH STRONG GROWTH POTENTIALMAINLY IN SOUTHERN AND EASTERN EUROPE FRENCH CHAINS SUCH AS PROMODES SA AND INTERMARCHE SA MAKE A LARGE PORTION OF THEIR PROFITS IN ITALY SPAIN PORTUGAL AND GREECE GERMAN DUTCH AND AUSTRIAN SUPERSTORES GO EAST MEINL CONTROLS 203 HUNGARIAN FOOD STORES SPAR HAS 300 STORES IN THE CZECH REPUBLIC ALONE WE'LL SEE THE SAME DYING OF MOMANDPOP STORES IN EASTERN EUROPE SAYS ALLYSON STEWART DIRECTOR OF LONDONBASED CONSULTING FIRM ALLYSON ASSOCIATES INTERNATIONAL LARGE RETAILERS ALSO MAKE USE OF THE STRONGEST WEAPON THEY HAVE AGAINST SMALL AND SPECIALTY STORES PRICE THE SUPERSTORE SECTOR HAS ALWAYS BEEN THERE BUT THE PRICEDRIVEN SUPERSTORE SECTOR IS NEW SAYS INDUSTRY ANALYST BILL CURRIE AT BARCLAYS DE ZOETE WEDD IN LONDON IN BRITAIN THE RAPID GROWTH OF CUTTHROAT DISCOUNTERS HAS FORCED FOOD RETAILERS INTO MORE COMPETITIVE PRICING ON THE CONTINENT CHAINS ARE FORCING PRICES DOWN THEMSELVES BY FORMING INTERNATIONAL RETAIL ALLIANCES THAT GIVE THEM LEVERAGE OVER PRODUCERS 9305120163 930512 FOUR EXECUTIVES TO QUIT UNIT OF MORGAN GRENFELL A WALL STREET JOURNAL NEWS ROUNDUP THE MANAGING DIRECTOR AND THREE OTHER TOP EXECUTIVES AT MORGAN GRENFELL ASIA HOLDINGS PTE QUIT APPARENTLY IN A SPAT OVER MANAGEMENT AUTONOMY WITH ITS BRITISH PARENT MORGAN GRENFELL & CO MORGAN GRENFELL ASIA BASED IN SINGAPORE HAS BEEN WELLKNOWN IN ASIA AS ONE OF THE RELATIVELY FEW ASIAN UNITS OF A FOREIGN BANKING AND SECURITIES CONCERN RUN BY LOCAL PROFESSIONALS THE SUDDEN RESIGNATIONS ARE SURE TO RAISE QUESTIONS ABOUT THE CLOUT OF ASIAN MANAGERS AT FOREIGNOWNED FIRMS FOREIGN BANKS AND SECURITIES HOUSES ARE MAJOR PLAYERS IN THE REGION TO THE POINT WHERE SOME ASIAN EXECUTIVES GRIPE ABOUT FOREIGN DOMINANCE OF PLUM ASSIGNMENTS A MORGAN GRENFELL SPOKESMAN IN LONDON CONFIRMED ONLY THAT THE GROUP MANAGING DIRECTOR OF MORGAN GRENFELL ASIA HSIEH FUHUA RESIGNED WITH IMMEDIATE EFFECT THREE OTHER EXECUTIVES TENDERED THEIR RESIGNATIONS TO TAKE EFFECT WITHIN SIX MONTHS HE SAID MORGAN GRENFELL WOULDN'T COMMENT ON THE REASONS FOR THE RESIGNATIONS BUT PEOPLE FAMILIAR WITH THE SITUATION SAID THE MORGAN GRENFELL ASIA EXECUTIVES QUIT AFTER A FIGHT WITH THEIR LONDON BOSSES OVER OPERATIONAL CONTROL AND THE FUTURE DIRECTION OF THE UNIT MORGAN GRENFELL IS A UNIT OF DEUTSCHE BANK AG MORGAN GRENFELL ASIA REPORTS DIRECTLY TO ITS BRITISH PARENT NOT TO DEUTSCHE BANK 9305120162 930512 CALIFORNIA TO OUTPACE US IN GROWTH STUDY INDICATES A WALL STREET JOURNAL NEWS ROUNDUP DRIVEN IN PART BY FOREIGN TRADE AND THE HIGHTECHNOLOGY INDUSTRY CALIFORNIA'S EMPLOYMENT AND POPULATION GROWTH ARE EXPECTED TO OUTPACE THE NATION IN THE NEXT DECADE A STUDY SAYS BY THE YEAR 2005 CALIFORNIA'S EMPLOYMENT WILL GROW 28 ADDING FOUR MILLION JOBS ITS POPULATION WILL GROW 25 TO 391 MILLION RESIDENTS AND THE NUMBER OF ITS HOUSEHOLDS WILL INCREASE 29 TO 138 MILLION A STUDY BY THE CENTER FOR CONTINUING STUDY OF THE CALIFORNIA ECONOMY PALO ALTO CALIF ESTIMATED IN ADDITION TO FOREIGN TRADE AND HIGH TECHNOLOGY GROWTH WILL ALSO BE PROPELLED BY PROFESSIONAL SERVICES AND ENTERTAINMENT INDUSTRIES THE STUDY SAID CRITICAL TO THE GROWTH HOWEVER IS THE STATE'S ABILITY TO DEVELOP A PUBLIC INVESTMENT STRATEGY THAT WILL HELP CREATE A SKILLED WORK FORCE PROVIDE ADEQUATE INFRASTRUCTURE MAINTAIN A HIGH STANDARD OF LIVING AND DEVELOP AN ATTRACTIVE CLIMATE FOR PRIVATE INVESTMENT THE STUDY SAID ACCORDING TO THE STUDY CALIFORNIA RANKS LAST AMONG ALL STATES IN THE GROWTH OF PUBLIC INVESTMENT SINCE 1960 FROM 1990 TO 1993 THE STATE LAGGED BEHIND THE NATION IN JOBS SPENDING AND CONSTRUCTION ACTIVITY GROWTH 9305120160 930512 INTERNATIONAL JAPAN'S DEBATE ON FORCES IN CAMBODIA SHOWS NATION'S UNCERTAINTY OVER ROLE BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S PAINFUL DOMESTIC DEBATE OVER ITS PEACEKEEPING FORCES IN CAMBODIA REVEALS A CENTRAL TRUTH ABOUT THIS NATION IT IS STILL A DIPLOMATIC FLEDGLING GIVEN TO FALTERING BABY STEPS AS IT ATTEMPTS TO STRIDE ONTO THE WORLD STAGE THE DEBATE WAS TOUCHED OFF MAY 4 WHEN A JAPANESE POLICEMAN PARTICIPATING IN UNITED NATIONS PEACEKEEPING OPERATIONS IN CAMBODIA WAS KILLED IN AN AMBUSH HE WAS THE FIRST JAPANESEGOVERNMENT REPRESENTATIVE TO DIE IN JAPAN'S FIRST MAJOR USE OF POLICE AND TROOPS OVERSEAS SINCE WORLD WAR II HOW MANY OF US WILL HAVE TO DIE BEFORE YOU DECIDE TO PULL THE JAPANESE POLICE OUT OF CAMBODIA THE HEAD OF THE JAPANESE POLICE CORPS IN CAMBODIA REPORTEDLY SAID WHEN AN OFFICIAL FROM TOKYO VISITED PHNOM PENH THIS WEEK EVEN SUPPORTERS OF THE OPERATION ACKNOWLEDGE THEY ARE NOW WALKING A VERY FINE LINE WE HAVE TO MOVE VERY CAREFULLY VERY CAUTIOUSLY A FOREIGN MINISTRY OFFICIAL SAID IN A BRIEFING FOR REPORTERS TUESDAY IF WE FAIL IN THIS FIRST EXPERIMENT IT WILL TAKE AT LEAST ANOTHER FEW YEARS BEFORE WE CAN PARTICIPATE IN ANOTHER PEACEKEEPING OPERATION OFFICIALS ALSO EXPRESSED CONCERN ABOUT RENEWED VIOLENCE IN CAMBODIA AFTER ELECTIONS SCHEDULED FOR THIS MONTH AND SOME ARE HOLDING OUT THE POSSIBILITY OF A WITHDRAWAL OF FORCES IF THE VIOLENCE ESCALATES AT THAT TIME FOR NOW THOUGH JAPANESE LEADERS ARE INSISTING THE SOLDIERS AND CIVILIAN PEACEKEEPERS WILL STAY WE WILL NOT CHANGE OUR POSITION ANOTHER FOREIGN MINISTRY OFFICIAL SAID TUESDAY WE ARE FIRMLY COMMITTED BACKERS SAY A JAPANESE PULLOUT COULD BE A CRIPPLING BLOW TO THE UN'S ATTEMPTS TO HOLD THE ELECTIONS AND A MAJOR EMBARRASSMENT TO JAPAN INDEED DESPITE THE POLICEMAN'S DEATH JAPAN WILL GO AHEAD WITH PLANS TO SEND AN ADDITIONAL 41 ELECTION MONITORS TO CAMBODIA ON TUESDAY THE GOVERNMENT DISPATCHED SIX SOLDIERS FOR A SEPARATE PEACEKEEPING OPERATION IN MOZAMBIQUE PRIME MINISTER KIICHI MIYAZAWA IS EXPECTED TO HOLD A NEWS CONFERENCE WEDNESDAY TO GIVE HIS FIRST FULL PUBLIC EXPLANATION OF THE GOVERNMENT'S POSITION JAPAN'S MOST POPULAR TELEVISION NEWS SHOW WHICH HAS CRITICIZED THE GOVERNMENT'S POSITION THIS WEEK REPORTED A SURVEY SHOWING THAT 52 OF JAPANESE WANT THE TROOPS TO COME HOME NOW OF THE 690 RESPONDENTS 37 SAID THE TROOPS SHOULD STAY WHILE 11 SAID THEY DIDN'T KNOW WHAT SHOULD BE DONE IT IS THE SAME AS THE LAST WAR HIROSHI KUME THE NEWS SHOW'S ANCHOR SAID ON THE BROADCAST MILITARY BRASS AND TOP POLITICIANS MAKE DECISIONS WITHOUT SEEING THE SITE IN PERSON THAT WAS THE CAUSE OF JAPAN'S DEFEAT THAT SAID THERE HAVE BEEN NO MAJOR PUBLIC PROTESTS OVER THE PAST WEEK AND MANY JAPANESE CITIZENS REMAIN STRONG SUPPORTERS OF THE MISSION JAPAN CAN'T LIVE ALONE YUGO IMANO AN 82YEAROLD RESTAURANT OPERATOR SAID AS HE HEADED HOME FROM WORK FOR THE SAKE OF INTERNATIONAL COOPERATION WE MUST ACCEPT SACRIFICE NAOKO YOKOYAMA 24 A TOKYO OFFICE WORKER CONCURRED IT IS INCONCEIVABLE FOR JAPAN ALONE TO WITHDRAW THERE ISN'T ANY OTHER MEANS FOR JAPAN TO MAKE CONTRIBUTIONS TO GLOBAL PEACE GIVING MONEY ISN'T ENOUGH THE GOVERNMENT'S BALANCING ACT INVOLVES PROMISING TO KEEP THE TROOPS IN CAMBODIA BUT PRESSING FOR SAFER CONDITIONS MR MIYAZAWA THIS WEEK DISPATCHED HOME AFFAIRS MINISTER KEIJIRO MURATA TO CAMBODIA TO NEGOTIATE WITH UN AUTHORITIES AMONG OTHER THINGS MR MURATA ASKED THAT JAPANESE POLICEMEN BE ALLOWED TO MOVE FROM THE MORE DANGEROUS REGIONS OF THE COUNTRY TO THE CAPITAL YASUSHI AKASHI A JAPANESE CITIZEN WHO HEADS THE UN OPERATIONS IN CAMBODIA REFUSED JAPANESE OFFICIALS SAID MR MURATA ALSO ASKED FOR MEASURES TO IMPROVE LIVING CONDITIONS AND SAFETY FOR ALL PEACEKEEPERS NOT JUST JAPANESE WHILE JAPAN HAS LOST ONE LIFE MORE THAN 60 PEOPLE FROM OTHER NATIONS INVOLVED IN THE PEACEKEEPING EFFORT ALSO HAVE BEEN KILLED 9305120159 930512 TECHNOLOGY GENETICS INSTITUTE AMGEN SETTLE DISPUTE OVER ANEMIA DRUG CAMBRIDGE MASS GENETICS INSTITUTE INC SAID IT AGREED TO PAY AMGEN INC 14 MILLION TO SETTLE A PATENT DISPUTE OVER RIGHTS TO THE ANEMIA DRUG ERYTHROPOIETIN OR EPO THE COMPANIES SAID THE SETTLEMENT CONCLUDES US PATENT DISPUTES BETWEEN THEM OVER EPO WHICH HAS BECOME ONE OF BIOTECHNOLOGY'S BIGGESTSELLING DRUGS IN 1991 GENETICS INSTITUTE LOST A LONGSTANDING US PATENT FIGHT OVER THE DRUG TO AMGEN OF THOUSAND OAKS CALIF BUT THE COMPANIES CONTINUED TO WRANGLE OVER DAMAGES A PATENT INFRINGEMENT LAWSUIT OVER EPO CONTINUES IN EUROPE BETWEEN JOHNSON & JOHNSON'S ORTHO PHARMACEUTICAL CORP UNIT WHICH HAS LICENSED RIGHTS TO EPO FROM AMGEN AND BOEHRINGER MANNHEIM GMBH A GERMAN CONCERN THAT HAS LICENSED GENETICS INSTITUTE'S VERSION OF THE DRUG IN EUROPE A GENETICS INSTITUTE SPOKESMAN SAID THE COMPANY DOESN'T FEEL THAT IT HAS EXPOSURE TO EUROPEAN DAMAGES FROM THE SUIT IN OVERTHECOUNTER TRADING YESTERDAY GENETICS INSTITUTE CLOSED UNCHANGED AT 31 AND AMGEN CLOSED AT 4150 ALSO FLAT GENETICS INSTITUTE 67OWNED BY AMERICAN HOME PRODUCTS CORP OF NEW YORK SAID AN ADDITIONAL 2 MILLION MAY BE PAYABLE TO AMGEN UNDER TERMS OF THE SETTLEMENT CONTINGENT ON THE OUTCOME OF CERTAIN FUTURE EVENTS A GENETICS INSTITUTE SPOKESMAN DECLINED TO SAY WHAT THE EVENTS WOULD BE GENETICS INSTITUTE IN MARCH 1991 TOOK A CHARGE OF 11 MILLION AS A RESERVE FOR POSSIBLE DAMAGES PAYABLE TO AMGEN THUS THE SETTLEMENT PAYMENT TO AMGEN WILL NOT HAVE A SIGNIFICANT EFFECT ON THIS FISCAL YEAR'S RESULTS OF OPERATIONS THE COMPANY SAID GENETICS INSTITUTE SAID PART OF THE PAYMENTS WILL BE REIMBURSED BY BOEHRINGER BUT DECLINED TO DISCLOSE WHAT AMOUNT BOEHRINGER WILL PAY GAREN BOHLIN GENETICS INSTITUTE'S EXECUTIVE VICE PRESIDENT SAID WE THINK WE WILL BE INDEMNIFIED BY BOEHRINGER FOR ANY US DAMAGES ABOVE 11 MILLION IN 1992 GENETICS INSTITUTE HAD A LOSS OF 37 MILLION OR 180 A SHARE INCLUDING CHARGES OF 32 MILLION ON REVENUES OF 877 MILLION 9305120158 930512 LETTERS TO THE EDITOR LOOKING AT RELIGION IN THE RIGHT SPIRIT MANY AMERICANS ARE DEEPLY AMBIVALENT ABOUT RELIGION ON THE ONE HAND THEY RECOGNIZE THE COMPELLING AND NURTURING FORCE OF RELIGION BUT ON THE OTHER HAND THEY ARE REPELLED BY THE INTOLERANCE AND BASHING BY ITS SELFANOINTED CHAMPIONS TYPICALLY MICHAEL S JOYCE IN HIS REVIEW OF MY BOOK THE SPIRIT OF COMMUNITY RIGHTS RESPONSIBILITIES AND THE COMMUNITARIAN AGENDA LEISURE & ARTS APRIL 19 DENOUNCES THE BOOK BECAUSE IT DOES NOT BUILD ITS CASE ON GOD RELIGION AND NATURAL RIGHTS IT WILL NOT DO THAT THE BOOK STRONGLY FAVORS TWOPARENT FAMILIES VALUE EDUCATION IN SCHOOLS FIRM COMMITMENT TO A MORAL ORDER AND A VIRTUOUS SOCIETY ONE MUST ARRIVE AT THESE AFFIRMATIONS THROUGH THE ONE PATHWAY MR JOYCE BLESSES AND IF YOU DON'T YOU ARE NOT ONE WHO IS ON THE SIDE OF ANGELS NOR HAVE YOU SEEN THE LIGHT YOU ARE TARRED AS BEING FOR GOVERNMENTISSUED HOMOGENIZED STERILE SUBSTITUTE COMMUNITIES NOTE ALSO THAT RELIGIONS THAT TOLERATE DEMOCRATIC GOVERNMENT RATHER THAN THOSE THAT WISH TO IMPOSE A THEOCRACY ARE WILLING TO LEAVE TO CAESAR THAT WHICH IS HIS BUT MR JOYCE EQUATES BEING RELIGIOUS WITH BEING ANTIGOVERNMENT AND SECULAR AS BEING PROSTATE NO WONDER HIS REVIEW COMPLETELY DISREGARDS ONETHIRD OF MY BOOK THAT DEALS WITH RECAPTURING DEMOCRACY FROM SPECIAL INTERESTS AND THE OTHER THIRD THAT DEALS WITH THE BALANCE BETWEEN INDIVIDUAL RIGHTS AND SOCIAL RESPONSIBILITIES MATTERS IN WHICH THE STATE AND THE BASICALLY SECULAR CONSTITUTION PLAY A KEY ROLE HE FINALLY ILLUSTRATES HOW FUTILE IT IS TO TRY TO REFRAIN FROM DRAWING ON SOCIAL SCIENCES AND SECULAR ARGUMENTS WHEN THEY FAVOR THE CAUSE HE CALLS ON PEOPLE TO POSTPONE SEXUAL ACTIVITY UNTIL THEY ARE PSYCHOLOGICALLY MATURE PRAY FIND THIS TENET IN THE SCRIPTURES 9305120157 930512 GETTY FAMILY TRUST SUES FINANCIERS PELTZ MAY ALLEGING FRAUD NEW YORK THE GORDON P GETTY FAMILY TRUST SUED FINANCIERS NELSON PELTZ AND PETER MAY ACCUSING THEM OF FRAUD IN THE SALE OF HALF THEIR INTEREST IN A BRITISH PROPERTY CONCERN THE LAWSUIT FILED IN FEDERAL COURT HERE CONCERNS THE ACQUISITION IN 1991 OF 11 OF MOUNTLEIGH GROUP PLC BY THE GETTY TRUST FROM MESSRS PELTZ AND MAY FOR 44 MILLION MOUNTLEIGH WHICH IS TRADED ON THE LONDON STOCK EXCHANGE WENT INTO RECEIVERSHIP IN MAY 1992 AND THE LAWSUIT SAYS ITS SHARES ARE NOW WORTHLESS ACCORDING TO THE LAWSUIT MESSRS PELTZ AND MAY AS WELL AS LEON KALVARIA A FORMER FIRST BOSTON CORP MANAGING DIRECTOR WHO WORKS FOR THE TWO INVESTORS LIED TO THE GETTY TRUST ABOUT THE FINANCIAL CONDITION OF MOUNTLEIGH THE LAWSUIT WHICH NAMES ALL THREE MEN AS DEFENDANTS SEEKS DAMAGES OF THE 44 MILLION THAT GETTY PAID FOR THE MOUNTLEIGH INTEREST AS WELL AS DAMAGES OF 28 MILLION THAT THE TRUST SAID IT HAD TO SPEND ON A SUBSEQUENT RIGHTS OFFERING AS A RESULT OF THE INITIAL INVESTMENT IN ADDITION GETTY WANTS THE THREE MEN TO PAY 250 MILLION IN PUNITIVE DAMAGES OR DAMAGES DESIGNED TO PUNISH AS A RESULT OF THEIR ALLEGEDLY FRAUDULENT CONDUCT ACCORDING TO THE LAWSUIT THE GETTY TRUST WAS INITIALLY APPROACHED BY MR KALVARIA ABOUT BUYING THE INTERESTS IN MOUNTLEIGH MR KALVARIA HAD WORKED WITH THE GETTY TRUST BEFORE ADVISING I IN TWO DEALS WHILE AT FIRST BOSTON BUT THE GETTY TRUST ALLEGES THAT MR KALVARIA WHILE WORKING FOR MESSRS PELTZ AND MAY LIED TO IT IN THE MOUNTLEIGH DEAL MESSRS PELTZ AND MAY COOWN DWG GROUP A HOLDING COMPANY WITH SOFTDRINK AND TEXTILE INTERESTS MR KALVARIA IS DWG'S VICE CHAIRMAN MR KALVARIA SPEAKING FOR HIMSELF AND MESSRS PELTZ AND MAY DECLINED TO COMMENT ON THE LAWSUIT 9305120156 930512 INTERNATIONAL TALKS ON CHINA'S TRADE STATUS BEGIN MADE TRICKIER BY HUMANRIGHTS ISSUES BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING WINSTON LORD THE NEW US ASSISTANT SECRETARY OF STATE FOR EAST ASIAN AND PACIFIC AFFAIRS SPENT YESTERDAY IN TALKS WITH CHINESE LEADERS ON ISSUES RELATED TO WASHINGTON'S JUNE 3 DECISION ON WHETHER TO RENEW CHINA'S MOST FAVORED NATION TRADE STATUS US OFFICIALS REFUSED TO DISCUSS THE RESULTS OF THE DAYLONG TALKS THE DISCUSSIONS WITH DEPUTY FOREIGN MINISTER LIU HUAQIU TOOK PLACE IN A TIGHTLY RESTRICTED GOVERNMENT COMPOUND LATE YESTERDAY MR LORD MADE A BRIEF APPEARANCE BEFORE AMERICAN BUSINESSPEOPLE ASSEMBLED AT THE US EMBASSY FOR A REGULARLY SCHEDULED BRIEFING BUSINESSPEOPLE AT THE BRIEFING SAID MR LORD OFFERED NO SPECIFICS ABOUT HIS MEETINGS AND WAS VAGUE ABOUT THE CLINTON ADMINISTRATION'S PLAN FOR MFN STATUS BASICALLY IT LOOKED LIKE THEY HAVEN'T MADE UP THEIR MIND BUT THERE WAS CLEARLY NO SUPPORT FOR UNCONDITIONAL MFN SAID ONE BUSINESSMAN WHO IS SO WORRIED ABOUT A NOSE DIVE IN USCHINA RELATIONS THAT HE IS PREPARING TO REREGISTER HIS COMPANY'S CHINA OPERATIONS UNDER THE NAME OF A GERMAN SUBSIDIARY EVERYBODY CAME OUT OF THERE VERY PESSIMISTIC BECAUSE THIS IS THE FIRST HIGHLEVEL BILATERAL MEETING SINCE PRESIDENT CLINTON TOOK OFFICE IN JANUARY THERE IS A LONG LIST OF CONTENTIOUS ISSUES THAT MR LORD IS BELIEVED TO BE ADDRESSING BUT SINCE MR LORD'S VISIT COMES THREE WEEKS BEFORE MR CLINTON MUST DECIDE WHAT TO DO ABOUT RENEWING MFN THAT ISSUE IS FOREMOST IN THE MINDS OF DIPLOMATS AND BUSINESSPEOPLE IN HONG KONG AND CHINA WHAT WE ARE COMING UP TO IS THE CRUNCH SAID A SENIOR WESTERN DIPLOMAT THE QUESTION IS WHEN THE PRESIDENT HAS TO MAKE HIS DECISION WHETHER THE PROGRESS HAS BEEN SUFFICIENT TO CONVINCE CONGRESS THAT THEY CAN WORK EASILY WITH THE PRESIDENT ON A POSITIVE CHINA RELATIONSHIP SINCE THE JUNE 4 199 MASSACRE OF DEMONSTRATORS IN BEIJING USCHINA RELATIONS HAVE BEEN ANYTHING BUT POSITIVE ANALYSTS SAY THAT WHILE MR CLINTON HAS INDICATED HE WILL TAKE A HARDER LINE ON CHINA THAN PRESIDENT BUSH DID THE CONFLICTING PRESSURES HAVE BECOME INTENSE CONGRESS LED BY SENATE MAJORITY LEADER GEORGE MITCHELL IS STILL DETERMINED TO MODERATE CHINA'S BEHAVIOR ON HUMAN RIGHTS AND WEAPONS PROLIFERATION BY LEGISLATING CONDITIONS THAT MAKE RENEWAL OF MFN LOWTARIFF TRADE STATUS CONTINGENT ON SPECIFIC IMPROVEMENTS BUT MR CLINTON LIKE MR BUSH BEFORE HIM FACES GEOPOLITICAL PRESSURES TO KEEP RELATIONS WITH CHINA ON AN EVEN KEEL CHINA'S TROUBLEMAKING CAPABILITY AS A PERMANENT MEMBER OF THE UN SECURITY COUNCIL STILL LOOMS LARGE WITH MR CLINTON'S DESIRE TO MAKE ECONOMIC OPPORTUNITY HIS CENTRAL DOMESTIC CONCERN AND HUMAN RIGHTS A CORE FEATURE OF FOREIGN POLICY CHINA IS UNIQUELY BEDEVILING AS THE WORLD'S MOST POPULOUS NATION AND FASTESTGROWING ECONOMY IT IS A MARKET FEW US BUSINESSES WANT TO MISS BUT PROGRESS HAS BEEN SLOW ON HUMAN RIGHTS AND EVIDENCE CONTINUES TO SURFACE THAT CHINA IS NOT KEEPING TO ITS PLEDGES REGARDING WEAPONS PROLIFERATION EQUALLY BEDEVILING FOR CHINESE OFFICIALS IS THE FACT THAT MR CLINTON'S CHINA POLICY IS IN THE HANDS OF MR LORD THE 55YEAROLD DIPLOMAT HAS UNDERGONE GREAT CHANGES IN HIS CHINA VIEWS HE FIRST CAME TO CHINA ACCOMPANYING HENRY KISSINGER ON THE JULY 1972 SECRET TRIP THAT BROKE A QUARTERCENTURY POLITICAL CHILL OVER THE NEXT TWO DECADES MR LORD'S VIEWS LIKE THOSE OF MANY AMERICANS HAVE SWUNG FROM BEING STARRYEYED TO ENRAGED BY THE TIANANMEN MASSACRE BY THE TIME MR LORD CAME BACK AS THE REAGAN ADMINISTRATION'S AMBASSADOR TO CHINA IN 1985 HE WAS A STAUNCH ADVOCATE OF KISSINGERIAN REALPOLITIK CHINA WAS THE LAND OF REASONABLE PEACEFUL COMMUNISTS WHO WERE HEADED IN THE RIGHT DIRECTION AND COULD BE USED TO COUNTER THE AGGRESSIVE AND DANGEROUS SOVIET VARIETY AFTER THE MASSACRE MR LORD NO LONGER IN GOVERNMENT WROTE A BITING ARTICLE IN THE JOURNAL FOREIGN AFFAIRS CALLING CHINA'S LEADERSHIP OSSIFIED MR LORD HAS SINCE BEEN A LEADING ADVOCATE OF ATTACHING HUMANRIGHTS CONDITIONS TO MFN STATUS DURING HIS CONFIRMATION HEARING IN MARCH HE SAID CONDITIONAL MFN IS THE POSITION OF THE PRESIDENT AND WE WILL GO FORWARD ON THAT BASIS DEPENDING ON EVENTS HE SAID 9305120155 930512 CRI HOLDERS CLEAR NEW NAME ROCKVILLE MD SHAREHOLDERS OF CRI INSURED MORTGAGE ASSOCIATION INC APPROVED A CHANGE IN THE REAL ESTATE INVESTMENT TRUST'S NAME TO CRIIMI MAE INC THE TRUST'S COMMONLY USED NAME SHAREHOLDERS ALSO APPROVED A PROPOSAL TO REINCORPORATE THE COMPANY IN MARYLAND WHICH WILL SAVE THE COST OF DELAWARE'S ANNUAL FRANCHISE FEE WHICH WAS 150000 LAST YEAR THE CHANGES ARE EFFECTIVE JULY 1 9305120153 930512 YOUR MONEY MATTERS BEWARE OF HOME MORTGAGE SERVICE SCAMS BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU GET A LETTER ADVISING YOU THAT SERVICING OF YOUR MORTGAGE HAS BEEN TAKEN OVER BY A NEW COMPANY CHECK IT OUT BEFORE YOU SEND A CHECK IT MAY BE A SCAM THAT'S WHAT HOMEOWNERS IN TEXAS LEARNED RECENTLY AFTER RECEIVING A LETTER ANNOUNCING THAT AN OUTFIT CALLING ITSELF MORTGAGE BANKERS OF AMERICA HAD ACQUIRED OWNERSHIP OF YOUR PREVIOUS MORTGAGE COMPANY THE LETTER ASKED THAT FUTURE PAYMENTS AND OTHER CORRESPONDENCE BE SENT TO AN ADDRESS IN HOUSTON ALTHOUGH THE LETTER SAYS MORTGAGE BANKERS IS THE FIFTHLARGEST MORTGAGEBANKING COMPANY IN THE US LAW ENFORCEMENT AUTHORITIES SAY IT DOESN'T EXIST THEY SAY THE HOUSTON ADDRESS IS SIMPLY A MAIL DROP A BOX AT A PRIVATE MAIL CENTER OPENED WITH PHONY IDENTIFICATION CUSTOMERS OF SEVERAL MORTGAGE LENDERS GOT THE LETTERS NO ONE KNOWS EXACTLY HOW MANY OR IF ANYONE SENT PAYMENT BEFORE THE TEXAS ATTORNEY GENERAL'S OFFICE GOT A RESTRAINING ORDER TO CLOSE THE MAIL DROP WE THINK WE NIPPED IT BEFORE ANYONE LOST MONEY SAYS AARON VALENZUELA AN ASSISTANT ATTORNEY GENERAL THE US POSTAL SERVICE IS INVESTIGATING GE CAPITAL MORTGAGE SERVICES INC A GENERAL ELECTRIC CO UNIT WAS CONCERNED ENOUGH ABOUT THE INCIDENT TO PUT AN INSERT IN ITS MONTHLY BILLS HEADLINED FRAUD ALERT NOTIFYING CUSTOMERS THAT IT HASN'T SOLD ANY MORTGAGE LOANS OFFICIALS AT COUNTRYWIDE FUNDING CORP A NATIONWIDE LENDER IN PASADENA CALIF SAID IT IS CONSIDERING AN ITEM ABOUT THE ALLEGED FRAUD IN ITS NEXT QUARTERLY NEWSLETTER TO CUSTOMERS THE MORTGAGE BANKERS ASSOCIATION OF AMERICA AN INDUSTRY TRADE GROUP SAYS IT IS PARTICULARLY CONCERNED THAT CON ARTISTS WOULD USE SUCH A SIMILAR NAME THIS ISN'T THE FIRST SUCH SCAM MORTGAGE LENDERS RECALL A SIMILAR INCIDENT IN VIRGINIA ABOUT 18 MONTHS AGO A CASE IN THE PACIFIC NORTHWEST ABOUT TWO YEARS AGO AND ANOTHER ONE IN THE SOUTHWEST THREE YEARS AGO INDEED TEXAS AUTHORITIES BELIEVE THAT THE INDIVIDUALS WHO SENT OUT THE LATEST LETTER ALSO WERE INVOLVED IN A SCAM LAST FALL IN WHICH HOMEOWNERS RECEIVED LETTERS FROM MORTGAGE INVESTMENT BANKERS OF TEXAS WITH A SAN ANTONIO ADDRESS IT'S A ONEMONTH DEAL SAYS WALTER KLEIN CHAIRMAN AND PRESIDENT OF SEARS MORTGAGE CORP A SEARS ROEBUCK & CO UNIT WHO SAYS HE HAS HEARD A NUMBER OF SIMILAR STORIES IN RECENT YEARS BUT IF YOU GET TO 1000 CUSTOMERS AND GET A 10 RETURN RATE IT'S A QUICK 100000 THE LATEST TEXAS CASE LOOKS TO BE SOMEWHAT ISOLATED BUT THE CONCEPT COULD COME UP AGAIN SAYS STUART LOPES EXECUTIVE VICE PRESIDENT OF RISK MANAGEMENT FOR GE CAPITAL MORTGAGE WE'RE TRYING TO EDUCATE OUR CUSTOMER BASE SO IF THEY GET A LETTER THEY WOULD AT LEAST CALL US SEVERAL GE CUSTOMERS IN TEXAS DID CALL WHEN THEY GOT THE LETTER AND THE COMPANY NOTIFIED LAW ENFORCEMENT AUTHORITIES OTHER LENDERS AND SOME RECIPIENTS OF THE LETTERS ALSO REPORTED THE SCAM THE LETTER ITSELF IS UNSOPHISTICATED IT BEGINS DEAR VALUED CUSTOMER AND DOESN'T INCLUDE THE NAME OF THE BORROWER THE ACCOUNT NUMBER OF EVEN THE NAME OF THE ORIGINAL LENDER IT PROMISES AN INFORMATION PACKET IN FOUR TO SIX WEEKS CONTAINING A HISTORY OF THE COMPANY ITS OPERATING PROCEDURES AN ANALYSIS OR AUDIT OF THE CUSTOMER'S MORTGAGE AND MONEYSAVING AND MONEYMAKING PROGRAMS AVAILABLE ONLY TO OUR MORTGAGE HOLDERS BY THE TIME THE PACKET ARRIVES THE LETTER SAYS THE COMPANY WILL HAVE A BRANCH OFFICE IN THE SAN ANTONIO AREA TO ANSWER QUESTIONS MEANWHILE IT ASKS THAT PAYMENTS BE SENT BY THE FIRST OF THE MONTH WE GUARANTEE A WONDERFUL AND HAPPY EXPERIENCE WITH YOUR NEW MORTGAGE COMPANY CONCLUDES THE LETTER SIGNED CUSTOMER SERVICE DEPARTMENT THE LETTER LAST FALL FROM MORTGAGE INVESTMENT BANKERS ASKED THAT PAYMENT BE IN THE FORM OF A CASHIER'S CHECK OR MONEY ORDER IF POSSIBLE BECAUSE THE WORK INVOLVED IN THE MERGER/ACQUISITION COULD DELAY PROCESSING OF PERSONAL CHECKS THE LETTER WILL FOOL PEOPLE ABSOLUTELY ALTHOUGH IT SHOULDN'T FOOL ANYBODY SAYS ROBERT PRATTE A ST PAUL MINN ATTORNEY WHO REPRESENTS MORTGAGE LENDERS HE SAYS HE'S AWARE OF THREE COMPANIES WHOSE CUSTOMERS GOT THE LETTER LAST FALL THE RETURN ADDRESS ON THAT LETTER WAS IN SAN ANTONIO LAW ENFORCEMENT AUTHORITIES SAY THAT ADDRESS TOO BELONGED TO A PRIVATE MAIL CENTER ALTHOUGH THEY STRESS THAT THE MAIL CENTERS WEREN'T INVOLVED IN THE SCAMS THE PERSON WHO OBTAINED THE HOUSTON MAIL BOX USED FOR THE LATEST MAILING ASKED THAT REPLIES BE FORWARDED TO AN ADDRESS IN SAN ANTONIO WHICH TURNED OUT TO BE ANOTHER MAIL CENTER AUTHORITIES SAY MR VALENZUELA IN THE TEXAS ATTORNEY GENERAL'S OFFICE SAYS THE MAIL CENTERS HAVE RECEIVED MAIL ADDRESSED TO THE COMPANIES WHICH PROBABLY WILL BE RETURNED TO THE SENDERS AFTER A COURT HEARING NEXT MONTH LENDERS SAY THIS KIND OF SCAM REFLECTS THE HUGE VOLUME OF MORTGAGE TRANSFERS IN RECENT YEARS AS BANKS AND THRIFTS HAVE RESTRUCTURED OPERATIONS MERGED OR BEEN TAKEN OVER BY REGULATORS THERE'S SO MUCH LEGITIMATE BUYING AND SELLING OF MORTGAGE SERVICING THAT ANYONE IS SUBJECT TO HAVING THEIR LOAN TRANSFERRED SAYS DONALD ATKINS A SENIOR VICE PRESIDENT OF MARGARETTEN & CO IF YOUR MORTGAGE HAS BEEN SOLD OR SERVICING TRANSFERRED YOU INDIVIDUALLY ON COMPANY LETTERHEAD STATING THAT THE MORTGAGE HAS BEEN SOLD OR SERVICING TRANSFERRED TO WHOM AND THE EFFECTIVE DATE SHOULD FOLLOW WITHIN 15 DAYS OF THE EFFECTIVE DATE ALTHOUGH SOMETIMES BOTH LETTERS WILL ARRIVE TOGETHER VERIFICATION ORDER 9305120152 930512 INTERNATIONAL EC'S UNEMPLOYMENT RATE LUXEMBOURG UNEMPLOYMENT IN THE 12NATION EUROPEAN COMMUNITY ROSE TO AN ADJUSTED 102 IN MARCH FROM 101 IN FEBRUARY AND 92 IN MARCH 1992 ACCORDING TO THE EC'S STATISTICS ARM EUROSTAT 9305120151 930512 IF ONLY LOVE ME TENDER' ELVIS WERE HERE TO WRITE A PROSPECTUS BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO IT WASN'T THE TENDER THE LAWYERS HAD IN MIND WHEN THEY DRAFTED THE NATION'S SECURITIES LAWS BUT THERE IT WAS ANYWAY DONE UP IN THE TRADITIONAL TOMBSTONE STYLE OF A CORPORATE BID AN ADVERTISEMENT IN THE BUSINESS SECTION OF MONDAY'S EDITION OF THE CHICAGO TRIBUNE ANNOUNCING A TENDER OFFER BY DAVID J SHAW FOR THE AFFECTION OF CHRISTINE MARIE OTT MR SHAW'S BID WAS AS THEY SAY IN ALL THOSE DIAMOND COMMERCIALS PRICELESS IT READ THE PURPOSE OF THIS OFFER IS TO EXCHANGE LOVE LOYALTY AND FIDELITY FOR AN EQUAL PARTNERSHIP IN A NEW JOINT VENTURE TO BE FORMED FOR THE PURPOSE OF EXPLORING THE UNCHARTERED REACHES OF THE FUTURE TO MINE FOR THE RICHNESS AND REAP THE REWARDS BELIEVED TO BE CONTAINED THEREIN MINDFUL OF SECURITIES AND EXCHANGE COMMISSION ADMONITIONS ON SUCH OFFERS THE AD POINTED OUT THAT IT WASN'T FOR EVERYONE THIS OFFER MAY CONTAIN SIGNIFICANT RISK AND IS THEREFORE SUITABLE FOR A CERTAIN ELIGIBLE INVESTOR ONLY IT SAID MR SHAW SAYS HE MENTIONED RISK BECAUSE HE'S BEEN MARRIED BEFORE THE SUITOR A FINANCIAL EXECUTIVE FROM SUBURBAN CHICAGO ALSO SET OUT A DEMAND THE AFFECTION SOUGHT IN THIS OFFER MUST BE TENDERED IN PERSON THE ADVERTISEMENT SAID WHILE THE OFFER HAD BEEN EXPECTED ITS TIMING SURPRISED AND EMBARRASSED THE TENDER TARGET WE'RE KIND OF PRIVATE PEOPLE MS OTT SAYS SHE HADN'T SEEN THE AD UNTIL SHE GOT TO WORK WHERE EXCITED OFFICE COLLEAGUES AT GOLIN/HARRIS COMMUNICATIONS POINTED IT OUT AN ACCOUNT GROUP SUPERVISOR AT THE CHICAGO PUBLIC RELATIONS AGENCY MS OTT 31 YEARS OLD HAS BEEN DATING MR SHAW 53 FOR SEVERAL YEARS MS OTT SAYS SHE PHONED MR SHAW AND TOLD HIM I WAS CONSIDERING HIS TENDER OFFER AND WAS PREPARED TO GIVE HIM HIS ANSWER THAT EVENING OVER DINNER MR SHAW PRESIDENT OF HARBOR CAPITAL CORP PROPOSED IN PERSON MS OTT ACCEPTED SHE FOUND A TOKEN OF HIS SINCERITY A DIAMOND RING IN HER CHAMPAGNE GLASS MR SHAW SAYS HE THOUGHT ABOUT INCLUDING IN THE AD THAT HE WAS BEING ASSISTED IN THE TRANSACTION BY HOPE LESS ROMANTIC & ASSOCIATES BUT THOUGHT IT WAS TOO CORNY THE MERGER IS SET FOR JUNE 4 1994 9305120150 930512 SPAR AEROSPACE UNIT WINS PACT TORONTO SPAR AEROSPACE LTD SAID ITS COMMUNICATIONS DIVISION SIGNED A CONTRACT VALUED AT MORE THAN 16 MILLION CANADIAN DOLLARS US126 MILLION WITH PROCEDATOS A DIVISION OF GRUPO SANTO DOMINGO OF COLOMBIA SPAR A SATELLITE COMMUNICATIONS COMPANY SAID IT WILL INSTALL A SYSTEM THAT WILL ALLOW PROCEDATOS TO OFFER TRANSMISSION SERVICES FOR VOICE DATA AND VIDEO TO CITIES ACROSS COLOMBIA 9305120149 930512 FINANCING BUSINESS BRISTOLMYERS SQUIBB CO BRISTOLMYERS SQUIBB CO NEW YORK SAID IT FILED A SHELF REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO ALLOW THE ISSUANCE OF AS MUCH AS 1 BILLION OF DEBT SECURITIES PROCEEDS FROM THE SALE OF THESE SECURITIES WHICH MAY BE OFFERED FROM TIME TO TIME WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING STOCKPURCHASE PROGRAMS REPAYMENT AND REFINANCING OF BORROWINGS AND ACQUISITIONS ACCORDING TO THE PHARMACEUTICAL COMPANY 9305120148 930512 WELLS FARGO TO REDEEM NOTES SAN FRANCISCO WELLS FARGO & CO SAID IT WILL REDEEM ALL OF ITS 875 SUBORDINATED NOTES DUE 1996 ON JUNE 15 THE REDEMPTION PRICE WILL BE 100 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE BANK SAID IT WAS MAKING THE REDEMPTION TO REPLACE HIGHERCOSTING FUNDS WITH LOWERCOSTING FUNDS 9305120146 930512 INSIDE TRACK TWO TOKOS MEDICAL INSIDERS SOLD STOCK IN FIRST QUARTER AS PRICE FELL SHARPLY BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TWO INSIDERS AT TOKOS MEDICAL CORP A PROVIDER OF SPECIALTY HEALTHCARE SERVICES FOR HIGHRISK PREGNANT WOMEN SOLD ABOUT 3 MILLION IN COMPANY STOCK IN THE FIRST QUARTER DURING A MAJOR SLIDE IN THE STOCK'S PRICE SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW THE SANTA ANA CALIF COMPANY HAS SEEN ITS STOCK PRICE FALL BY ABOUT 50 SINCE DECEMBER AMID A DECLINE IN REVENUE GROWTH AND A GENERAL SOURING BY WALL STREET ON HEALTHCARE STOCKS TOKOS WAS QUOTED YESTERDAY AT 825 UP 125 CENTS IN NATIONAL OVERTHECOUNTER TRADING THOMAS W ERICKSON AN OUTSIDE TOKOS DIRECTOR SOLD ALL OF HIS 300000 SHARES BETWEEN NOV 20 AND MARCH 31 AS THE PRICE FELL TO JUST OVER 7 A SHARE FROM 15 MR ERICKSON SAID HIS SALES WERE THE RESULT OF MARGIN CALLS ON INVESTMENTS HE HAD MADE IN OTHER HEALTHCARE COMPANIES CRAIG T DAVENPORT PRESIDENT OF TOKOS DISPOSED OF 54637 SHARES INDIRECTLY HELD ON MARCH 24 AT 619 A SHARE LEAVING HIM WITH 146150 SHARES HELD INDIRECTLY IN TRUST BUT IN A TELEPHONE INTERVIEW MR DAVENPORT CONFIRMED THAT THE DAVENPORT FAMILY TRUST SOLD AN ADDITIONAL 65000 SHARES IN APRIL IN EFFECT REDUCING MR DAVENPORT'S INDIRECT HOLDINGS BY A TOTAL OF 60 I'M NOT HAPPY ABOUT THE SALES HE SAID IN THE INTERVIEW HE SAID THE MARCH SALES ON FILE WITH THE SEC WERE RELATED ENTIRELY TO MARGIN CALLS FROM HIS BROKERAGE FIRM AND PERTAINED TO OUTSIDE INVESTMENTS MR DAVENPORT SAID THE DISPOSALS HAD NOTHING TO DO WITH CONCERNS ABOUT THE COMPANY'S PROSPECTS THE LONGTERM PROSPECTS HAVE BEEN AND CONTINUE TO BE STRONG GIVEN THE NATURE OF PREMATURE BIRTHS IN THE US AND THE NEED FOR MORE INNOVATIVE HOME CARE FOR WOMEN MR DAVENPORT SAID HE ACKNOWLEDGED HOWEVER THAT THERE HAS BEEN A SOFTNESS IN SALES WE'RE DOING EVERYTHING WE CAN TO REGAIN MOMENTUM ANALYSTS WHO FOLLOW THE COMPANY NOTE THAT ITS STOCK PRICE HAD BEEN TRADING EARLY LAST YEAR IN THE MID40 RANGE SINCE LATE LAST YEAR THE HEALTHCARE INDUSTRY HAS TAKEN A MAJOR HIT FROM INVESTORS FEARING THE EFFECTS OF CLINTON ADMINISTRATION PROPOSALS TO REIN IN RISING MEDICAL COSTS BUT JOHN F HINDELONG AN ANALYST WITH DONALDSON LUFKIN & JENRETTE IN NEW YORK SAID TOKOS MEDICAL'S PROBLEMS GO BEYOND THE GENERAL DECLINE IN HEALTHCARE STOCKS THE INDUSTRY CONCERNS WERE COMPOUNDED IN THE CASE OF TOKOS BY A SHARP DECLINE IN EARNINGS FROM PREVIOUS LEVELS HE SAID THE FOURTH QUARTER WAS BELOW THE TREND LINE FOR PAST EARNINGS AND THEN THE FIRST QUARTER SHOWED A LOSS ON MAY 6 TOKOS POSTED A LOSS OF TWO CENTS A SHARE FOR THE FIRST QUARTER COMPARED WITH A 12CENTASHARE PROFIT A YEAR EARLIER AND SAID IT DIDN'T EXPECT TO RETURN TO PROFITABILITY BEFORE THE THIRD QUARTER AT THE EARLIEST IT ATTRIBUTED THE LOSS TO SOFTNESS IN PATIENT REFERRALS MR HINDELONG SAID A CONTROVERSY OVER THE EFFECTIVENESS OF DRUGS MEANT TO EXTEND PREGNANCY IN THE EVENT OF PREMATURE LABOR RAISES QUESTIONS ABOUT THE OUTLOOK FOR TOKOS'S PRETERM LABOR MONITORING DEVICE THE CONTROVERSY WAS FUELED BY AN ARTICLE IN THE NEW ENGLAND JOURNAL OF MEDICINE LAST YEAR WHICH QUESTIONED THE EFFECTIVENESS OF THE DRUG RITODRINE FOR THE MANAGEMENT OF PRETERM LABOR IF YOU CAN'T BE SURE THAT YOU CAN EXTEND PREGNANCY AFTER ALL THEN THAT CALLS INTO QUESTION THE VALUE OF THE MONITORING SERVICE MANUFACTURED AND OPERATED BY TOKOS SAID MR HINDELONG THIS CONTROVERSY HAS RESULTED IN SLOWING OF THE REVENUE AT TOKOS WHICH HAS A VERY HIGH FIXEDCOST INFRASTRUCTURE BUT TOKOS SHARES GOT A BOOST LAST WEEK BY THE RELEASE OF A UNIVERSITY OF MISSISSIPPI STUDY ENDORSING THE USE OF THE COMPANY'S HOME UTERINE MONITORS TO DELAY PREMATURE BIRTHS THE FIVEYEAR STUDY TRACKED THE CASES OF SOME 17000 PREGNANT WOMEN AT HIGH RISK OF DELIVERING EARLY THE STUDY CONCLUDED THAT THE COMBINED USE OF THE MONITORS AND TOCOLYTIC DRUGS WHICH SEEK TO FORESTALL PRETERM LABOR ALLOWED 76 OF THE WOMEN IN THE STUDY TO CARRY THEIR PREGNANCIES TO TERM THE STUDY'S AUTHORS SAID THAT WAS A HUGE IMPROVEMENT OVER THE 25 SUCCESS RATE FOUND IN PREVIOUS STUDIES WHICH INVOLVED FAR FEWER PATIENTS TYPICALLY 350 TO 400 THIS LATEST STUDY MAY HELP TO RESTORE REVENUE AND PROFIT TO PREVIOUS LEVELS OVER TIME SAID MR HINDELONG 9305120145 930512 GEPHARDT SEEKS BROADER USE OF TRADE SANCTIONS WASHINGTON HOUSE MAJORITY LEADER RICHARD GEPHARDT SAID THE US SHOULD HAVE THE AUTHORITY TO LEVY TRADE SANCTIONS AGAINST COUNTRIES THAT DON'T ENFORCE WORKER OR ENVIRONMENTAL RULES SPEAKING AT THE ECONOMIC STRATEGY INSTITUTE A TRADE THINKTANK THE MISSOURI DEMOCRAT SAID HE WOULD PREPARE LEGISLATION FOR WHAT HE CALLED GREEN AND BLUE 301 UNDER SECTION 301 OF US TRADE LAW THE US CAN LEVY TRADE SANCTIONS ON COUNTRIES INVOLVED IN UNFAIR TRADE PRACTICES MR GEPHARDT WOULD EXPAND THAT AUTHORITY BY AUTHORIZING TRADE SANCTIONS AGAINST COUNTRIES IN WHICH LABOR STANDARDS AREN'T ENFORCED BLUE 301 AND AGAINST COUNTRIES WHERE ENVIRONMENTAL RULES ARE IGNORED GREEN 301 THE PROPOSAL UNDERSCORES MR GEPHARDT'S DISSATISFACTION WITH THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH HE FEELS DOESN'T ADEQUATELY ADDRESS WORKER AND ENVIRONMENTAL ISSUES THE CLINTON ADMINISTRATION IS NEGOTIATING SIDE ACCORDS TO THE TRADE ACCORD THAT WOULD SET UP NORTH AMERICAN ENVIRONMENTAL AND LABOR BOARDS BUT THE ADMINISTRATION ISN'T PROPOSING ENFORCEMENT POWERS AS SWEEPING AS MR GEPHARDT'S 9305120144 930512 PEPPERAND SALT AS TEN COMMANDMENTS AND THE GOLDEN RULE EVEN BEFORE I MAKE A DECISION 9305120143 930512 WHO'S NEWS CONTINENTAL AIRLINES' CHAIRMAN POST GOES TO BONDERMAN ONE OF ITS INVESTORS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CONTINENTAL AIRLINES NAMED DAVID BONDERMAN ONE OF THE NEW INVESTORS WHOSE 450 MILLION INFUSION HELPED BRING THE COMPANY OUT OF BANKRUPTCYLAW REORGANIZATION NONEXECUTIVE CHAIRMAN MR BONDERMAN 50 YEARS OLD RUNS AIR PARTNERS LP A FORT WORTH TEXAS INVESTMENT PARTNERSHIP THAT BOUGHT MAJORITY CONTROL OF CONTINENTAL WITH AIR CANADA FOR 450 MILLION MR BONDERMAN'S IS TECHNICALLY A NEW APPOINTMENT FOR THE AIRLINE WHOSE EMERGENCE FROM CHAPTER 11 PROTECTION APRIL 30 GAVE IT A NEW BALANCE SHEET NEW OWNERS AND THUS A NEW BOARD BUT THE BIGGER NEWS FOR CONTINENTAL MAY BE THAT AFTER ALMOST 17 MONTHS CONTINENTAL STILL HAS THE SAME CHIEF EXECUTIVE OFFICER AFTER YEARS OF TURNOVER AT THE TOP MR BONDERMAN'S ACCESSION TO THE CHAIRMANSHIP IS AN INDICATION THAT ROBERT FERGUSON III'S POSITION IN THAT POST IS ASSURED AIR PARTNERS HAD SAID SINCE MAKING ITS BID FOR CONTINENTAL IN NOVEMBER THAT IT HAD FAITH IN THE COMPANY'S SENIOR MANAGEMENT AND MR BONDERMAN REITERATED THAT LAST MONTH WHEN CONTINENTAL EMERGED FROM CHAPTER 11 MR FERGUSON TOOK THE PRESIDENT'S TITLE IN MARCH AFTER LEWIS JORDAN RESIGNED FROM THAT POST AND AS CHIEF OPERATING OFFICER IN AN APPARENT DISPUTE OVER CONTROL OF THE COMPANY A CONTINENTAL SPOKESMAN SAID THE AIRLINE IS STILL LOOKING FOR A CHIEF OPERATING OFFICER THE TWO MEN WORKED TOGETHER MORE THAN 10 YEARS AGO WHEN BOTH WORKED FOR FORT WORTH BILLIONAIRE ROBERT M BASS MR BONDERMAN WAS MR BASS'S CHIEF TAKEOVER STRATEGIST AND MR FERGUSON WORKED THERE BRIEFLY BEFORE MOVING TO BRANIFF AIRLINES WHERE HE HELPED TO RESTRUCTURE THE STRUGGLING CARRIER IN THE MID1980S THE TWO MEN HAVE BEEN FRIENDS EVER SINCE AND IT WAS MR FERGUSON WHO ATTRACTED MR BONDERMAN'S INTEREST IN CONTINENTAL WHEN IT WAS SCOUTING FOR INVESTORS BEFORE JOINING MR BASS IN 1983 MR BONDERMAN HAD BEEN A LAW PROFESSOR AND A PARTNER OF ARNOLD & PORTER IN WASHINGTON IN WHAT HE SAID WILL BE HIS ONLY NEWS CONFERENCE ON CONTINENTAL BEFORE HE WAS NAMED NONEXECUTIVE CHAIRMAN MR BONDERMAN SAID LAST MONTH THAT WHOEVER IS THE CHAIRMAN AND IT MIGHT OR MIGHT NOT BE ME WILL ASSIST IN RUNNING BOARD MEETINGS NOT BE A VISIBLE PRESENCE FOR THIS AIRLINE OF GREATER IMPACT TO CONTINENTAL'S FUTURE WILL BE THE PROMOTION OF JOHN LUTH TO SENIOR VICE PRESIDENT OF RESTRUCTURING FROM CHIEF FINANCIAL OFFICER MR LUTH WHOSE APPOINTMENT WAS ANNOUNCED MONDAY IS CHARGED WITH ANALYZING HOW THE AIRLINE WILL OPERATE IN THE FUTURE LIKE MANY AIRLINES CONTINENTAL IS STRUGGLING TO REDEFINE ITSELF AFTER YEARS OF HEAVY FINANCIAL LOSSES AND AS CHEAPER CARRIERS STEAL AWAY PASSENGER TRAFFIC IN ADDITION TO MR BONDERMAN CONTINENTAL'S NEW BOARD INCLUDES MR FERGUSON AND MEMBERS APPOINTED BY AIR PARTNERS AIR CANADA AND ITS UNSECURED CREDITORS AIR PARTNERS DIRECTORS ARE JAMES COULTER ANOTHER AIR PARTNERS PRINCIPAL PATRICK FOLEY CHIEF EXECUTIVE OFFICER OF CALIFORNIABASED DHL WORLDWIDE EXPRESS JIM O'BRIEN AIR PARTNERS' CHIEF FINANCIAL OFFICER WILLIAM PRICE ANOTHER AIR PARTNERS PRINCIPAL AND DONALD STURM CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE BANK OF CHERRY CREEK DENVER AIR CANADA'S DIRECTORS ARE JV RAYMOND CYR CHAIRMAN OF BELL CANADA ROWLAND FRAZEE RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE ROYAL BANK OF CANADA HOLLIS HARRIS AIR CANADA'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER DAVID MITCHELL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ALBERTA ENERGY CORP CLAUDE TAYLOR AIR CANADA'S CHAIRMAN EMERITUS A SIXTH SLOT WAS TO HAVE BEEN HELD BY DAVID RICKETTS AIR CANADA'S CHIEF FINANCIAL OFFICER UNTIL HE LEFT THE AIRLINE LAST WEEK ALONG WITH TWO OTHER COMPANY OFFICIALS IN A MANAGEMENT SHAKEUP CONTINENTAL'S UNSECURED CREDITORS NAMED ROBERT LUMPKINS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CARGILL INC RICHARD POGUE SENIOR PARTNER OF JONES DAY REAVIS & POGUE IN CLEVELAND AND JACK TROTTER A PARTNER WITH MCCLURE TROTTER & MENTZ THERE ALSO ARE TWO INDEPENDENT DIRECTORS DOUGLAS MCCORKINDALE VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF GANNETT CO AND KAREN HASTIE WILLIAMS A PARTNER WITH CROWELL & MORING 9305120142 930512 DIGITAL EQUIPMENT DATA STORAGE MAYNARD MASS DIGITAL EQUIPMENT CORP SAID IT INTRODUCED A LINE OF DATA STORAGE PRODUCTS THE COMPUTER MAKER SAID ITS NEW STORAGEWORKS LINE IS BASED ON THE SMALL COMPUTER SYSTEM INTERFACE INDUSTRY STANDARD AND FEATURES A MODULAR DESIGN THAT PLACES STORAGE DEVICES CONTROLLERS POWER SUPPLIES AND OTHER PARTS IN SNAPIN CARRIERS THE NEW DATASTORAGE COMPONENTS ARE DESIGNED TO SLIDE INTO MODULAR SHELVING THE COMPANY ADDED 9305120141 930512 INTERNATIONAL JAPAN ACCUSES US OF UNFAIR TRADE POLICIES MITI OBJECTS TO PENALTIES TOKYO ALSO ISSUES RULES TO PREVENT BID RIGGING BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AFTER TAKING MONTHS OF ABUSE FROM THE CLINTON ADMINISTRATION OVER TOKYO'S HUGE TRADE SURPLUS JAPAN TOOK THE OFFENSIVE RELEASING A SECOND ANNUAL REPORT THAT RANKS THE US AND OTHER COUNTRIES FOR UNFAIR TRADE POLICIES OFFICIALS IN WASHINGTON HAVE BEEN SINGLING OUT JAPAN AS THE BIGGEST VIOLATOR OF FREETRADE PRINCIPLES BUT THE JAPANESE REPORT PAINTS THE US AS THE WORST OFFENDER AMONG THE MAJOR TRADING NATIONS JAPAN ITSELF ISN'T COVERED IN THE REPORT WE WOULD LIKE TO SHOW THAT ALMOST ALL COUNTRIES HAVE PROBLEMS SAID AN OFFICIAL AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY WHICH ORGANIZED THE PANEL OF ACADEMICS AND BUSINESS EXECUTIVES THAT PRODUCED THE 265PAGE TOME ONE OF AMERICA'S BIGGEST SINS ACCORDING TO THE REPORT IS ITS TENDENCY TO IMPOSE UNILATERAL PENALTIES ON TRADING PARTNERS MAINLY JAPAN WITHOUT CONSULTING THE MULTILATERAL TRADE ORGANIZATION THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR GATT IN WASHINGTON A US TRADE OFFICIAL SAID THAT IT WOULD BE FAR MORE PRODUCTIVE FOR JAPAN TO TAKE A MORE ACTIVE ROLE IN RESOLVING ITS OWN MARKETACCESS BARRIERS AND TAKE A LEADING ROLE IN THE URUGUAY ROUND THAN PRODUCE THIS KIND OF REPORT THE URUGUAY ROUND REFERS TO TRADE TALKS BEING HELD UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE REPORT OUTLINES WHAT JAPANESE OFFICIALS SAY WILL BE THEIR NEW TOUGHER STRATEGY FOR HANDLING US COMPLAINTS IN THE PAST JAPAN HAS GENERALLY CAVED IN TO US DEMANDS NOW THE MITI OFFICIAL SAID JAPAN WILL MORE LIKELY ASK GATT TO RULE ON THE US ALLEGATIONS BUT IN A SEPARATE MOVE TUESDAY TOKYO UNVEILED NEW STANDARDS DESIGNED TO MAKE BIDDING ON CONSTRUCTION PROJECTS MORE OPEN AND TO MAKE ILLEGAL SCHEMES MORE DIFFICULT IT ISN'T CLEAR IF THE REVISIONS WILL SATISFY THE US WHICH LESS THAN TWO WEEKS AGO COMPLAINED THAT JAPAN'S PUBLICWORKS PROJECTS ARE EFFECTIVELY CLOSED TO FOREIGN CONTRACTORS THE NEW STANDARDS WHICH WENT INTO EFFECT MONDAY APPARENTLY ARE AIMED AT FENDING OFF FOREIGN CRITICISM ABOUT THE CONSTRUCTION INDUSTRY'S COZY TIES WITH POWERFUL POLITICIANS SOME OF WHOM ARE SUSPECTED OF ACCEPTING HUGE ILLEGAL DONATIONS IN RETURN FOR HELPING THE JAPANESE CONTRACTORS WIN CONTRACTS STILL THE NEW STEPS DON'T ELIMINATE THE PRIVATE TENDER SYSTEM THAT ALLOWS PUBLIC BODIES TO LIMIT THE NUMBER OF BIDDERS A SYSTEM THAT FOREIGNERS SAY CURBS COMPETITION SEPARATELY MITI MINISTER YOSHIRO MORI WAS SCHEDULED TO MEET WEDNESDAY WITH OFFICIALS OF 177 JAPANESE COMPANIES TO URGE THEM TO BOOST IMPORTS THE MITI REPORT EXAMINES THE POLICIES OF JAPAN'S 10 BIGGEST TRADING PARTNERS FOR VIOLATIONS OF 12 CATEGORIES OF INTERNATIONALLY ACCEPTED RULES SET OUT IN THE GATT AND COMPARABLE INTERNATIONAL AGREEMENTS THE US BREAKS THE RULES IN NINE OF THE 12 CATEGORIES THE REPORT CONCLUDES WHILE THE US IS STEPPING UP ATTACKS ON JAPANESE GOVERNMENT PROCUREMENT THE REPORT SAYS SEVERAL US PROCUREMENT PRACTICES POSE PROBLEMS THE BOOK INCLUDES A TABLE SHOWING THAT BETWEEN 1988 AND 1990 14 OF JAPAN'S LARGESCALE GOVERNMENT PROCUREMENT CONTRACTS WERE FOR FOREIGN PRODUCTS THE FIGURE FOR SIMILAR US GOVERNMENT PURCHASES WAS 9 THE EUROPEAN COMMUNITY RANKS NEXT WITH PROBLEMS IN SIX AREAS SOUTH KOREA IS THIRD WITH FIVE JAPANESE OFFICIALS ADMIT THAT THE STUDY ISN'T LIKELY TO QUIET THEIR INCREASINGLY VOCAL WASHINGTON CRITICS THE REPORT BASES ITS DEFINITION OF FAIRNESS ON GATT RULES BUT CLINTON ADMINISTRATION OFFICIALS SAY JAPAN'S ECONOMY TENDS TO BLOCK IMPORTS WITH PRACTICES SUCH AS COMPLEX DISTRIBUTION THAT GATT DOESN'T ADDRESS THIS IS THE SECOND YEAR IN WHICH THE JAPANESE GOVERNMENT HAS ISSUED A REPORT ON UNFAIR TRADE PRACTICES OF OTHER COUNTRIES THE US RANKED AS THE WORST OFFENDER IN LAST YEAR'S STUDY AS WELL 9305120140 930512 CD YIELDS CHANGED LITTLE IN PAST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS SLID TO 265 FROM 267 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS EASED TO 478 FROM 479 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS INCHED UP TO 308 FROM 307 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLIPPED TO 5 FROM 506 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE EDGED DOWN TO 267 FROM 268 ON FIVEYEAR JUMBOS THE AVERAGE DECLINED TO 485 FROM 487 SAID BANXQUOTE 9305120139 930512 WHO'S NEWS ARMCO INC ARMCO INC PARSIPPANY NJ ROBERT M VISOKEY 50 YEARS OLD WAS NAMED OPERATING HEAD OF THE COMPANY'S SPECIALTY FLATROLLED STEEL BUSINESS THE NEW POSITION CONSOLIDATES THE MANAGEMENT OF SEVERAL DIVISIONS UNDER MR VISOKEY WHO ALSO REMAINS PRESIDENT OF ARMCO ADVANCE MATERIALS CO HE NOW ALSO MANAGES THE COMPANY'S COSHOCTON STAINLESS DIVISION EASTERN STAINLESS CORP AND ITS 50 STAKE IN NORTH AMERICAN STAINLESS 9305120138 930512 US WIDENS DEFINITION OF CROP DISASTER TO PROVIDE ASSISTANCE FOR QUALITY LOSS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS WIDENING THE DEFINITION OF CROP DISASTERS AN APPROACH THAT SOME FEAR MAY PROVE DISASTROUS FOR THE FEDERAL BUDGET UNLIKE PREVIOUS ADMINISTRATIONS THE WHITE HOUSE IS ALLOWING FARMERS WHOSE CROPS HAVE DECLINED IN QUALITY TO QUALIFY FOR FEDERAL DISASTER PAYMENTS PREVIOUS ADMINISTRATIONS HAVE GENERALLY DOLED OUT SUCH ASSISTANCE ONLY TO FARMERS WHO HAVE SUFFERED REDUCED CROP OUTPUT BECAUSE OF BAD WEATHER OR OTHER DISASTERS THE AGRICULTURE DEPARTMENT THIS WEEK AGREED TO PROVIDE AID ESTIMATED TO TOTAL 20 MILLION TO ABOUT 900 POTATO FARMERS IN MAINE SENATE MAJORITY LEADER GEORGE MITCHELL HAD REQUESTED THE AID ON BEHALF OF HIS STATE'S FARMERS WHOSE CROPS WERE SEVERELY DAMAGED BY UNUSUAL WEATHER LAST SUMMER THE PACKAGE WAS AGREED UPON AFTER MEETINGS OF SEN MITCHELL'S OFFICE THE WHITE HOUSE AND THE DEPARTMENT A FEW WEEKS AGO THE DEPARTMENT AGREED TO PROVIDE ASSISTANCE TO CORN FARMERS IN MICHIGAN AND A FEW OTHER STATES WHERE CROP QUALITY WAS DAMAGED THIS AID WHOSE AMOUNT IS STILL UNDETERMINED WAS REQUESTED BY MEMBERS OF THE MICHIGAN CONGRESSIONAL DELEGATION A SPOKESMAN FOR AGRICULTURE SECRETARY MIKE ESPY SAID THE CHANGE REPRESENTS A RECOGNITION THAT QUALITY LOSS CAN BE AS DEVASTATING AS QUANTITY LOSSES FOR FARMERS CRITICS HOWEVER SAY THE APPROACH SETS TOO SUBJECTIVE A STANDARD THAT WILL MAKE IT HARD FOR THE GOVERNMENT TO TURN DOWN FUTURE REQUESTS FOR AID PAST ADMINISTRATIONS HAVE WORKED VERY HARD TO AVOID DOING THIS BECAUSE IT GETS TO BE A VERY SUBJECTIVE THING AND SOMETIMES A VERY MARGINAL THING SAID FORMER AGRICULTURE SECRETARY EDWARD MADIGAN THE COST OF IT COULD BE QUITE EXCESSIVE EASILY DOUBLING OR TRIPLING THE DISASTER PAYMENTS IN A GIVEN YEAR DISASTER PAYMENTS HAVE AVERAGED ABOUT 17 BILLION ANNUALLY OVER THE PAST FOUR YEARS ACCORDING TO THE CENTER FOR RESOURCE ECONOMICS ACCORDING TO KENNETH COOK THE VICE PRESIDENT FOR POLICY AT THE PRIVATE RESEARCH GROUP THE TREND IN LATE 1980S AND EARLY 1990S HAS BEEN FOR CONGRESS TO AUTHORIZE MORE SPENDING FOR MORE DISASTERS COVERING MORE CROPS THAN HAPPENED PREVIOUSLY CAROL COX WAIT PRESIDENT OF THE BIPARTISAN COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET SAID THE GOVERNMENT IS UNNECESSARILY INTERPETING RULES IN A WAY THAT WILL COST MONEY IT SEEMS TO ME WHEN THE GOVERNMENT IS GODZILLIONS OF DOLLARS IN DEBT AND THE DEFICIT IS GROWING FASTER THAN THE ECONOMY WE SHOULD BE LOOKING FOR OPPORTUNITIES TO SAVE MONEY SHE SAID ACCORDING TO JOHN LOGAN DIRECTOR OF ADVERTISING AND QUALITY CONTROL FOR THE MAINE POTATO BOARD LAST SUMMER'S BAD WEATHER HAS RESULTED IN 75 MILLION IN LOSSES FOR THE 150 MILLION POTATO INDUSTRY IN THE STATE HE SAID SOME POTATOES HAD HOLLOW SECTIONS IN THEIR MIDDLES WHILE OTHERS WERE MALFORMED IN WAYS THAT LED TO EXCESSIVE BRUISING MANY OF THE POTATOES WERE EDIBLE BUT NOT GOOD ENOUGH TO BE MARKETED TO CONSUMERS HE SAID IN A LETTER TO SENS MITCHELL AND WILLIAM COHEN R MAINE SECRETARY ESPY SAID THAT FARMERS WILL POTENTIALLY BE ELIGIBLE FOR AID FROM SEVERAL AGRICULTURE DEPARTMENT PROGRAMS UNDER A DISASTERASSISTANCE PROGRAM FARMERS CAN GET PAYMENTS FOR POTATOES THAT WERE SHIPPED TO MARKET BUT REJECTED THE DEPARTMENT WILL ALSO BUY UP SURPLUS POTATOES IN AN UNUSUAL USE OF A PROGRAM TYPICALLY USED TO SUPPORT PRICES OF PERISHABLE COMMODITIES IN ADDITION THE FARMERS HOME ADMINISTRATION WILL TRY TO STREAMLINE PROCESSING FOR DIRECTPRODUCTION LOANS SEPARATELY THE SENATE CONFIRMED FIVE CANDIDATES FOR AGRICULTURE DEPARTMENT POSTS WHOSE NOMINATIONS HAD BEEN HELD UP BY SEN COHEN THE LAWMAKER RELEASED THE NOMINATIONS AFTER RECEIVING MR ESPY'S LETTER THE OFFICIALS ARE RICHARD ROMINGER TO BE DEPUTY AGRICULTURE SECRETARY EUGENE BRANSTOOL TO BE ASSISTANT SECRETARY FOR MARKETING AND INSPECTION SERVICES JAMES LYONS TO BE ASSISTANT SECRETARY FOR NATURAL RESOURCES AND ENVIRONMENT BOB NASH TO BE UNDERSECRETARY FOR SMALL COMMUNITTIES AND RURAL DEVELOPMENT AND WARDELL TOWNSEND TO BE ASSISTANT SECRETARY FOR ADMINISTRATION 9305120137 930512 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMERICAN TELEPHONE & TELEGRAPH CO A SHELF REGISTRATION TO SELL UP TO 26 BILLION OF NOTES AND WARRANTS TO PURCHASE NOTES BELLSOUTH TELECOMMUNICATIONS INC A UNIT OF BELLSOUTH CORP AN OFFERING OF UP TO 800 MILLION OF DEBT SECURITIES FLORIDA POWER CORP A SHELF REGISTRATION COVERING 200 MILLION OF FIRST MORTGAGE BONDS MATTEL INC AN OFFERING OF 100 MILLION OF NOTES DUE IN THE YEAR 2000 VIA MORGAN STANLEY & CO AND KIDDER PEABODY & CO PACIFIC GAS & ELECTRIC CO A SHELF REGISTRATION FOR 10 MILLION SHARES OF PREFERRED STOCK 9305120136 930512 ECONOMY CLINTON SEEKS A JOBS PROGRAM OF 4 BILLION MEASURE FOR PUBLIC WORKS WOULD BE FINANCED BY REDUCING OUTLAYS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS TRYING TO SALVAGE A JOBS BILL THAT WOULD PUMP AS MUCH AS 4 BILLION INTO PUBLIC WORKS PROGRAMS AND WOULD BE FINANCED BY ACROSSTHEBOARD CUTS FROM DOMESTIC AND DEFENSE APPROPRIATIONS WHITE HOUSE BUDGET DIRECTOR LEON PANETTA CAME TO THE CAPITOL TO MEET WITH THE JOINT HOUSE AND SENATE DEMOCRATIC LEADERSHIP YESTERDAY AND IN DISCUSSIONS WITH SENATE REPUBLICANS THE CLINTON ADMINISTRATION HAS WON QUIET BACKING FROM OREGON SEN MARK HATFIELD THE RANKING GOP MEMBER OF THE APPROPRIATIONS COMMITTEE ALTHOUGH NO FINAL DECISIONS HAVE BEEN MADE THE LEGISLATION WOULD PICK UP MAJOR PARTS OF THE ECONOMICSTIMULUS BILL THAT SENATE REPUBLICANS BLOCKED LAST MONTH ONE DRAFT OF THE PLAN CALLS FOR AN ESTIMATED 36 BILLION IN TARGETED EXPENDITURES FOR AN ARRAY OF PROGRAMS INCLUDING HIGHWAY AND MASSTRANSIT CONSTRUCTION SUMMER JOBS AND WASTEWATER TREATMENT PROJECTS TO MEET REPUBLICAN OBJECTIONS THE COST WOULD BE OFFSET BY AN ACROSSTHEBOARD CUT OF LESS THAN 1 FROM ALL DISCRETIONARY APPROPRIATIONS FOR THE CURRENT FISCAL YEAR ENDING SEPT 30 HOWEVER SMALL SUCH A CUT COULD RESULT IN INEQUITIES GIVEN THE VAGARIES OF GOVERNMENT SPENDING AND THE LATENESS IN THE FISCAL YEAR FOR EXAMPLE EDUCATION FUNDS USUALLY AREN'T RELEASED IN MANY CASES UNTIL JULY THUS THESE PROGRAMS WHICH ARE A HIGH PRIORITY FOR THE ADMINISTRATION RISK BEING CUT FAR MORE THAN THOSE WHERE THE MONEY IS DISTRIBUTED TO STATE AND LOCAL GOVERNMENTS EARLY IN THE YEAR THE CLEAR EMPHASIS OF THE PROGRAM IS IN PUBLIC WORKS WITH AN ESTIMATED 19 BILLION TO BE RELEASED FROM EXISTING TRUST FUNDS FOR HIGHWAY AND MASS TRANSIT ACCORDING TO ONE DRAFT AN ADDITIONAL 500 MILLION WOULD GO TO WASTEWATER TREATMENT GRANTS FUNDED THROUGH THE ENVIRONMENTAL PROTECTION ADMINISTRATION AND 600 MILLION IS ALLOCATED FOR SUMMER JOBS FOR DISADVANTAGED TEENAGERS AMONG THE SMALLER PARTS UNDER DISCUSSION ARE FUNDING FOR SMALL BUSINESS ADMINISTRATION LOANS AN ESTIMATED 200 MILLION TO HELP LOCAL GOVERNMENTS HIRE POLICE OFFICERS AND 215 MILLION FOR VARIOUS NATIONAL PARK SERVICE AND FOREST SERVICE PROJECTS THAT WOULD HELP PROVIDE EMPLOYMENT IN THE MORE RURAL WEST COMMUNITY DEVELOPMENT PROJECTS WHICH BECAME A LIGHTNING ROD FOR CRITICS OF THE ADMINISTRATION'S MORE AMBITIOUS ECONOMICSTIMULUS BILL AREN'T INCLUDED IN THE REVISED PACKAGE AND THE STRATEGY ABANDONS ANY EFFORT TO USE DEFICIT FINANCING TO BOOST THE FALTERING RECOVERY THOUGH THE ADMINISTRATION HAS A STAKE IN SEEING SOME LEGISLATIVE RESULT FROM THE DEBATE THIS SPRING THE PRESIDENT'S PARTY REMAINS DIVIDED ON TAKING UP THE ISSUE AGAIN AFTER THE BITTERNESS OF THE FILIBUSTER CONFRONTATION WITH REPUBLICANS HOUSE DEMOCRATS WHO WERE BULLISH ON THE INITIAL STIMULUS BILL REMAIN SYMPATHETIC WITH THE NOTION OF A JOBS BILL BUT SENATE DEMOCRATS REMAIN SO ANGRY THAT SOME WOULD PREFER NO BILL RATHER THAN GIVE REPUBLICAN MODERATES A CHANCE OF POLITICAL COVER BY VOTING FOR A COMPROMISE NOW REPUBLICANS THEMSELVES HAVE PROPOSED ACROSSTHEBOARD CUTS ON DEFENSE BUT THIS FEATURE IN THE PROPOSAL IS LIKELY TO BE CONTROVERSIAL GIVEN THE PRESSURES ALREADY WEIGHING ON THE MILITARY BUDGET PENTAGON ALLIES IN CONGRESS ARE FIGHTING DEMANDS THAT THE RECENT US MILITARY MISSION TO SOMALIA COSTING AT LEAST 750 MILLION BE PAID FROM OFFSETTING CUTS IN DEFENSE AND THE BUDGET PRESSURE WILL ONLY INCREASE IN THE FISCAL YEAR BEGINNING OCT 1 WHEN THE HOUSE APPROPRIATIONS LEADERSHIP IS EXPECTED TO PARE THE PRESIDENT'S DEFENSE BUDGET BY AN ADDITIONAL 17 BILLION IN DIRECT OUTLAYS OR SPENDING TO ACCOUNT FOR DIFFERENCES BETWEEN THE CONGRESSIONAL BUDGET OFFICE AND THE PENTAGON OVER THE RATE OF MILITARY SPENDING IN A BRIEF HALLWAY INTERVIEW YESTERDAY MR PANETTA ACKNOWLEDGED THAT THIS MAY BE THE RESULT YOU HAVE TO MAKE ROOM SOMEPLACE HE SAID 9305120135 930512 MARKETING & MEDIA MTV EPIC RECORDS SIGN PACT NEW YORK MTV NETWORKS SAID IT SIGNED AN EXCLUSIVE LONGTERM AGREEMENT WITH EPIC RECORDS TO PRODUCE HOME VIDEO AND AUDIO PRODUCTS BASED ON MTV'S NICKELODEON CHILDREN'S TELEVISION PROGRAMMING EPIC RECORDS A UNIT OF SONY CORP'S SONY MUSIC UNIT PLANS TO RELEASE 30 TO 40 NICKELODEON VIDEO TITLES AND ABOUT EIGHT AUDIO TITLES DURING THE FIRST 12 MONTHS OF THE AGREEMENT TARGETING THE TWO TO 11YEAROLD AUDIENCE EPIC AND NICKELODEON WILL JOINTLY PROMOTE THE NEW LINE MTV NETWORKS A UNIT OF VIACOM INTERNATIONAL INC OPERATES THREE CABLE TELEVISION NETWORKS VIACOM INTERNATIONAL IS A UNIT OF VIACOM INC 9305120134 930512 STANDARD REGISTER STOCK BUYBACK DAYTON OHIO STANDARD REGISTER CO SAID IT MAY BUY BACK AS MUCH AS 20 MILLION OF ITS COMMON STOCK OUTSTANDING IN THE OPEN MARKET OR IN PRIVATE TRANSACTIONS THE MAKER OF BUSINESS FORMS AND PRESSURE SENSITIVE LABELS SAID IT MAY PURCHASE THE STOCK FROM TIME TO TIME ACCORDING TO MARKET CONDITIONS OFFICIALS DIDN'T RETURN PHONE CALLS SEEKING FURTHER COMMENT IN OVERTHECOUNTER TRADING YESTERDAY STANDARD REGISTER GAINED 25 CENTS TO 17875 9305120132 930512 WHO'S NEWS TIMKEN CO TIMKEN CO CANTON OHIO SALVATORE J MIRAGLIA WAS NAMED VICE PRESIDENT MANUFACTURING AND LINN B OSTERMAN WAS NAMED VICE PRESIDENT MARKETING OF THE COMPANY'S STEEL BUSINESS BOTH POSITIONS ARE NEW MR MIRAGLIA 43 YEARS OLD FORMERLY WAS DIRECTOR MANUFACTURING MR OSTERMAN 48 PREVIOUSLY WAS DIRECTOR MARKETING 9305120131 930512 WHO'S NEWS AMERICAN WATER WORKS CO AMERICAN WATER WORKS CO VOORHEES NJ WILLIAM R COBB WHO RETIRED IN 1991 AS PRESIDENT OF THIS WATER UTILITY HOLDING COMPANY'S SUBSIDIARIES IN NEW JERSEY NEW YORK AND CONNECTICUT WAS ELECTED TO THE 11MEMBER BOARD HE TAKES THE SEAT VACATED BY HIS WIFE RHODA W COBB WHO DECLINED TO SEEK REELECTION 9305120130 930512 WHO'S NEWS COLUMBIA GAS SYSTEM INC COLUMBIA GAS SYSTEM INC WILMINGTON DEL JAMES P HEFFERNAN 47 YEARS OLD WAS ELECTED A DIRECTOR OF THE NATURALGASSYSTEM COMPANY INCREASING THE BOARD'S SIZE TO 15 MR HEFFERNAN IS A PRINCIPAL OF WHITMAN HEFFERNAN RHEIN WORKOUT FUNDS AND AN OFFICER AND DIRECTOR OF DANIELSON HOLDING CORP HERMAN'S HOLDINGS INC AND ITS SUBSIDIARY HERMAN'S SPORTING GOODS INC 9305120129 930512 WHO'S NEWS MOORCO INTERNATIONAL INC MOORCO INTERNATIONAL INC HOUSTON RICHARD T LEVIS PRESIDENT AND GENERAL MANAGER OF THIS COMPANY'S CROSBY VALVE & GAGE UNIT WAS NAMED SENIOR VICE PRESIDENT OF OPERATIONS EFFECTIVE JUNE 1 TO THIS SUPPLIER OF FLUID MEASUREMENT AND PRESSURE CONTROL PRODUCTS MR LEVIS 45 YEARS OLD SUCCEEDS MICHAEL TINER WHO WILL BECOME THE COMPANY'S CHIEF EXECUTIVE OFFICER AND PRESIDENT 9305120128 930512 WHO'S NEWS RG BARRY CORP RG BARRY CORP PICKERINGTON OHIO LEE ABRAHAM 65 YEARS OLD FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ASSOCIATED MERCHANDISING CORP NEW YORK WAS NAMED TO THE BOARD OF THE FOOTWEAR MANUFACTURER HE SUCCEEDS ALLAN J BLOOSTEIN 63 WHO RETIRED FROM THE BOARD FOR PERSONAL REASONS THE SIZE OF THE BOARD REMAINS AT NINE MEMBERS 9305120127 930512 GUILTY PLEA IS ENTERED TO 2 CHARGES BY SON OF EXTHRIFT OWNER DALLAS THOMAS MILTON GAUBERT THE SON OF FORMER TEXAS THRIFT OWNER THOMAS MERRILL GAUBERT PLEADED GUILTY TO FEDERAL CONSPIRACY AND MONEY LAUNDERING CHARGES A MOVE THAT COULD PIT HIM AGAINST HIS FATHER AT TRIAL ACCORDING TO DOCUMENTS FILED IN FEDERAL COURT HERE THE YOUNGER MR GAUBERT PLEADED GUILTY TO ONE COUNT EACH IN TWO SEPARATE INDICTMENTS ONE ALLEGED THAT HE CONSPIRED TO CONCEAL ASSETS FROM THE FEDERAL DEPOSIT INSURANCE CORP IN THE SALE OF A HOME HIS FATHER USED TO OWN THE OTHER CLAIMED HE STRUCTURED A TRANSACTION VALUED AT ABOUT 20000 TO AVOID REPORTING IT TO THE GOVERNMENT DAVID SCHICK AN ATTORNEY FOR THE 29YEAROLD MR GAUBERT SAID HIS CLIENT ENTERED THE PLEA BECAUSE HE'S A YOUNG MAN WITH A FAMILY AND A BABY DAUGHTER HE JUST SIMPLY WANTED TO GET WHATEVER PROBLEMS HE HAS WITH THE GOVERNMENT BEHIND HIM MR GAUBERT WORKS AS A REALESTATE BROKER HIS ATTORNEY SAID LINDA GROVES AN ASSISTANT US ATTORNEY PROSECUTING THE CASE SAID IT'S POSSIBLE THE YOUNGER MR GAUBERT COULD BE CALLED TO TESTIFY AGAINST HIS FATHER WHO FACES A RANGE OF FEDERAL FRAUD CHARGES IN DALLAS AND IN SHERMAN TEXAS IF THE GOVERNMENT CALLS HIM TO TESTIFY WE WOULD EXPECT HIM TO TESTIFY SHE SAID THE ELDER MR GAUBERT A ONETIME DEMOCRATIC FUNDRAISER AND OWNER OF THE FAILED INDEPENDENT AMERICAN SAVINGS ASSOCIATION IN IRVING TEXAS IS TO GO TO TRIAL IN SHERMAN JUNE 14 LAST WEEK JACK R GAUBERT HIS BROTHER WAS SENTENCED TO THREE YEARS' PROBATION ORDERED TO PERFORM COMMUNITY SERVICE AND FINED 138000 AFTER PLEADING GUILTY TO RELATED FEDERAL FRAUD CHARGES HE ADMITTED THAT HE APPROVED LOANS IN EXCESS OF A PROPERTY'S APPRAISED VALUE WHILE AN OFFICER OF THE BANK THE YOUNGER MR GAUBERT IS SCHEDULED TO BE SENTENCED AUG 2 HE FACES UP TO FIVE YEARS IN JAIL AND AS MUCH AS A 250000 FINE ON EACH OF THE TWO COUNTS 9305120126 930512 MERRILL TO GET OUT OF LBO FUND BUSINESS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO ONE OF WALL STREET'S LARGEST OPERATORS OF LEVERAGEDBUYOUT FUNDS PLANS TO GET OUT OF THAT BUSINESS IN LINE WITH ITS POLICY OF REDUCING ILLIQUID LONGTERM INVESTMENTS AS A RESULT THE TOP MANAGERS OF MERRILL LYNCH CAPITAL PARTNERS MERRILL'S EXISTING BUYOUT UNIT PLAN TO LEAVE THE FIRM AND RAISE A NEW BUYOUT FUND ON THEIR OWN ACCORDING TO BARRY FRIEDBERG A MERRILL EXECUTIVE VICE PRESIDENT MR FRIEDBERG SAID MERRILL WILL INVEST IN THE NEW FUND AND ACT AS PLACEMENT AGENT BUT ITS INVESTMENT WON'T BE AS LARGE AS IT WOULD HAVE BEEN IF MERRILL WERE ACTING AS THE FUND'S SPONSOR THE CAPITAL PARTNERS EXECUTIVES ALSO WILL HELP MANAGE THE INVESTMENTS THEY ALREADY MADE FOR THE EXISTING MERRILL FUNDS ALTHOUGH MERRILL LYNCH CAPITAL PARTNERS DIDN'T DO MANY BIG HIGHPROFILE DEALS IN THE 1980S HEYDAY OF BUYOUTS IT MADE NEARLY 2 BILLION IN EQUITY INVESTMENTS AT ONE POINT THE UNIT RANKED AS ONE OF THE THREE LARGEST FUND OPERATORS BEHIND ONLY KOHLBERG KRAVIS ROBERTS & CO AND MORGAN STANLEY & CO MR FRIEDBERG SAYS ITS FUNDS HAVE GENERATED NET RETURNS TO INVESTORS OF MORE THAN 30 ANNUALLY AMONG THE MERRILL FUNDS' LARGEST INVESTMENTS WERE A 478 BILLION BUYOUT OF BORGWARNER CORP A 207 BILLION BUYOUT OF SUPERMARKETS GENERAL CORP AND A 154 BILLION BUYOUT OF JACK ECKERD CORP WALL STREET SECURITIES FIRMS HAVE HAD A MIXED EXPERIENCE WITH LEVERAGED BUYOUTS SOME LIKE MORGAN STANLEY & CO WERE HUGELY PROFITABLE BUT GENERATED CONTROVERSY OVER POTENTIAL CONFLICTS WITH OTHER INVESTMENTBANKING CLIENTS MORGAN STANLEY WHICH ALSO ONCE CONSIDERED SEPARATING ITS BUYOUT UNIT FROM THE PARENT COMPANY DECIDED TO KEEP THE FUND INHOUSE IT IS CURRENTLY RAISING ITS THIRD FUND OTHERS ENTERED THE FIELD LATER WITH LESS SUCCESS PETER COHEN FORMER CHAIRMAN OF SHEARSON LEHMAN BROTHERS INC LOST HIS JOB PARTLY OVER HIS PERCEIVED MISCUES DURING THE 25 BILLION TAKEOVER BATTLE FOR RJR NABISCO INC THE SAME POLICY OF LIMITING NEW LONGTERM ILLIQUID INVESTMENTS LED MERRILL IN MARCH 1992 TO STOP MAKING LOANS FROM A 1 BILLION LENDING OPERATION CALLED MERRILL LYNCH INTERFUNDING WHICH MADE LOANS TO SMALL HIGHLY LEVERAGED COMPANIES MERRILL'S DECISION TO LEAVE THE BUYOUT BUSINESS ALSO FOLLOWS BY TWO MONTHS THE DEMOTION OF MR FRIEDBERG MERRILL'S FORMER HEAD OF INVESTMENT BANKING SOME PEOPLE ON WALL STREET SAID MR FRIEDBERG'S FORTUNES AT MERRILL WERE HURT BY WRITEDOWNS TAKEN RECENTLY BY THE INTERFUNDING LOAN BUSINESS MERRILL AND MR FRIEDBERG BOTH DISPUTED THAT BECOMING FULLY INDEPENDENT COULD BE MORE LUCRATIVE FOR THE MANAGERS OF CAPITAL PARTNERS WHO NOW MUST SPLIT THEIR SHARE OF BUYOUT PROFITS WITH THE PARENT COMPANY THE MANAGEMENT IS LED BY UNIT PRESIDENT JAMES BURKE WHO WAS SERIOUSLY INJURED IN AN AUTO ACCIDENT LAST YEAR HE NOW SHARES RESPONSIBILITIES WITH ALEXIS MICHAS MR FRIEDBERG NOTED THAT THE INVESTMENT COMMITMENTS ON MERRILL LYNCH CAPITAL PARTNERS II THE LAST FUND MERRILL RAISED EXPIRED AT THE END OF LAST YEAR MR FRIEDBERG INFORMED INVESTORS OF THE NEW PLANS AT A MEETING YESTERDAY AT THE RITZ CARLTON HOTEL ON AMELIA ISLAND FLA IT IS OUR INTENTION AND POLICY TO REDUCE NEW LONGTERM COMMITMENTS IN ILLIQUID INVESTMENTS OVER TIME MR FRIEDBERG SAID WE FELT THE FINANCIAL COMMITMENT THAT WOULD HAVE JUSTIFIED OUR SERVING AS GENERAL PARTNER WOULD HAVE BEEN LARGER THAN THE COINVESTMENT WE INTEND TO MAKE AS A LIMITED PARTNER MERRILL HAD INVESTED ABOUT 300 MILLION IN THE FIRST TWO FUNDS MERRILL ESTABLISHED A PRESENCE IN THE MERGER MANIA OF THE 1980S BY USING ITS BALANCE SHEET TO MAKE HUGE TEMPORARY BRIDGE LOANS TO HELP CLIENTS COMPLETE TAKEOVERS MERRILL WOULD RAKE IN HUGE FEES ON THE LOANS THEMSELVES AND SUBSEQUENT JUNKBOND OFFERINGS TO REFINANCE THEM BUT MERRILL RETREATED FROM THOSE BUSINESSES SEVERAL YEARS AGO AS MERGERS TAPERED OFF THE JUNKBOND MARKET SHRANK AND A FEW BRIDGE LOANS COULDN'T BE REFINANCED IN THE 1990S MERRILL HAS USED ITS BALANCE SHEET TO OPERATE AGGRESSIVELY IN UNDERWRITING AND TRADING OF DEBT AND EQUITY SECURITIES EARNING EVEN GREATER PROFITS WALL STREET EXECUTIVES SAY THE FIRM'S NEW EMPHASIS ON LIQUIDITY IS INTENDED TO BOLSTER THAT ABILITY 9305120125 930512 GENERAL TIRE TECHNOLOGY CENTER AKRON OHIO GENERAL TIRE INC SAID IT WILL BUILD A 75 MILLION TECHNOLOGY CENTER IN MOUNT VERNON ILL FOR THE DEVELOPMENT OF RADIAL HIGHWAY TRUCK TIRES THE TECHNOLOGY CENTER WILL BE NEXT TO A GENERAL TIRE MANUFACTURING PLANT IN A BID TO CREATE SYNERGIES GENERAL TIRE A UNIT OF GERMANY'S CONTINENTAL AG EXPECTS TO COMPLETE THE CENTER IN MID1994 9305120124 930512 MARKETING & MEDIA PHILIP MORRIS COS INCREASES THE PRICE OF BASIC CIGARETTES BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIP MORRIS COS RAISED THE PRICE OF ITS CHEAPEST CIGARETTES SIGNALING THAT IT IS PREPARED TO BACK OFF A PRICE BATTLE IN THE LOW END OF THE MARKET PHILIP MORRIS'S MOVE MATCHES A SIMILAR PRICE INCREASE LAST WEEK BY RIVAL RJR NABISCO HOLDINGS CORP BUT ANALYSTS SAID THE LATEST PRICE INCREASE BY NO MEANS MARKS AN END TO THE PRICE WAR INITIATED APRIL 2 WHEN PHILIP MORRIS ANNOUNCED THAT IT PLANNED TO CUT THE PRICE OF MARLBOROS BY 40 CENTS A PACK BOTH RJR AND PHILIP MORRIS PLAN TO PROCEED WITH AGGRESSIVE DISCOUNTS ON THEIR PREMIUM BRANDS IN JUNE PHILIP MORRIS STOCK WHICH ROSE 175 MONDAY AS WORD OF THE PRICE INCREASE FILTERED OUT LOST 125 YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TO CLOSE AT 5150 PUTTING PRESSURE ON THE STOCK WAS A REPORT ISSUED BY SANFORD C BERNSTEIN ANALYST GARY D BLACK ENTITLED IS THE PRICE WAR SUDDENLY OVER NOT IT PREDICTED THAT HOSTILITIES WOULD LAST FOR UP TO TWO YEARS TRADERS WERE ALSO CONCERNED ABOUT PRESSURE FOR A STIFF CIGARETTETAX INCREASE AS THE WHITE HOUSE SIGNALLED IT WAS CONSIDERING BACKING OFF A TAX ON BEER ROY BURRY AN ANALYST WITH KIDDER PEABODY & CO SAID PHILIP MORRIS MAY BACK OFF ITS DISCOUNTING PLANS FOR MARLBOROS IF IT IS ABLE TO NARROW THE GAP BY RAISING PRICES AT THE LOW END HE SAID THE MOVE BY PHILIP MORRIS WAS A POSITIVE DEVELOPMENT FOR THE COMPANY IF THE PRICE INCREASES STICK PHILIP MORRIS HAS A SWORD IN ONE HAND AND AN OLIVE BRANCH IN THE OTHER SAID MR BURRY THE PRICE INCREASES AT THE LOW END MIGHT NOT STICK IF THE SMALLER CIGARETTE COMPANIES AMERICAN BRANDS INC AND BROWN & WILLIAMSON TOBACCO CO DECIDED TO PURSUE MARKET SHARE AT THE EXPENSE OF PROFITS EXECUTIVES AT THE TWO COMPANIES COULDN'T BE REACHED FOR COMMENT AND RJR DECLINED TO COMMENT SEPARATELY PHILIP MORRIS PROMOTED WILLIAM H WEBB TO PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PHILIP MORRIS INTERNATIONAL INC ITS INTERNATIONAL TOBACCO BUSINESS MR WEBB SUCCEEDS GEOFFERY C BIBLE WHO WAS PROMOTED LAST MONTH TO EXECUTIVE VICE PRESIDENT WORLDWIDE TOBACCO WITH OVERSIGHT OVER PHILIP MORRIS'S DOMESTIC AND INTERNATIONAL CIGARETTE BUSINESS MR WEBB WAS PRESIDENT OF THE COMPANY'S TOBACCO BUSINESS IN THE ASIA/PACIFIC REGION 9305120123 930512 SKYWEST TRAFFIC GROWS ST GEORGE UTAH SKYWEST INC SAID ITS AIR TRAFFIC IN APRIL GREW 16 TO 243 MILLION REVENUE PASSENGER MILES FROM 209 MILLION A YEAR AGO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE PASSENGER LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED BY PAYING PASSENGERS WAS 42 UP FROM 39 IN THE YEAREARLIER PERIOD 9305120121 930512 CREDIT RATINGS DELTA AIR LINE'S DEBT PREFERRED STOCK GET MOODY'S DOWNGRADE NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED ITS CREDIT RATINGS ON DELTA AIR LINE'S LONGTERM DEBT AND PREFERRED STOCK AND ASSIGNED A BA3 RATING TO THE AIRLINES' PROPOSED 575 MILLION SHELF FILING OF CONVERTIBLE SUBORDINATED NOTES THE MOVE PUTS 46 BILLION OF DELTA DEBT BELOW INVESTMENT GRADE IN MARCH STANDARD & POOR'S CORP PLACED 57 BILLION OF DELTA DEBT BELOW INVESTMENT GRADE THE ATLANTA AIRLINE SAID THE MOVES BY BOTH MOODY'S AND S&P TRIGGER OPTIONS ON 440 MILLION IN NOTES WHEREBY THE HOLDERS CAN RECALL THE NOTES PLUS INTEREST AFTER 127 DAYS IF DELTA HASN'T IMPROVED ITS CREDIT RATING WITH AT LEAST ONE OF THE TWO RATING AGENCIES THE AIRLINE SAID THAT COULD RESULT IN AN UNSPECIFIED UPFRONT COST MOODY'S DECISION COMES DESPITE DELTA'S MOVES TO CUT COSTS BY 100 MILLION A YEAR BY RETIRING JETS AND LAYING OFF PILOTS A COMPANY SPOKESMAN SAID WE'RE OBVIOUSLY DISAPPOINTED AND CONTINUE TO WORK HARD TO REDUCE COSTS AND GET BACK TO SUSTAINED PROFITABILITY MOODY'S SAID DELTA HAS BEEN HURT BY A WEAK EUROPEAN ECONOMY ESPECIALLY GERMANY WHERE DELTA'S COSTLY FRANKFURT HUB IS LIKELY TO SUFFER REDUCED REVENUES OVER THE INTERMEDIATE TERM MOODY'S LOWERED DELTA'S SECURED EQUIPMENT TRUST CERTIFICATES TO BAA3 FROM BAA2 SENIOR SECURED SHELF REGISTRATION TO BAA3 FROM BAA2 SENIOR UNSECURED DEBT ISSUES AND INDUSTRIAL REVENUE BONDS TO BA1 FROM BAA3 SENIOR UNSECURED SHELF REGISTRATION TO BA1 FROM BAA3 INDUSTRIAL REVENUE BONDS TO BA3 FROM BA1 AND CONVERTIBLE PREFERRED STOCK TO SINGLEB1 FROM BA2 9305120119 930512 BUSINESS BRIEF ALCO SUBSIDIARY SEEKS TO BUY UK'S ERSKINE IN 103 MILLION OFFER VALLEY FORGE PA ALCO STANDARD CORP SAID ITS UK UNIT MADE A FRIENDLY BID TO ACQUIRE ALL THE SHARES OF AN OFFICE PRODUCTS COMPETITOR ERSKINE HOUSE GROUP PLC FOR ABOUT 103 MILLION ERSKINE HOUSE A PUBLICLY HELD UK COMPANY WITH 1992 REVENUE OF ABOUT 275 MILLION SELLS AND LEASES COPIERS AND FAX MACHINES OF ITS REVENUE 173 MILLION COMES FROM US OPERATIONS 86 MILLION FROM ITS UK BUSINESS AND 16 MILLION FROM OPERATIONS IN GERMANY ALCO HAS ANNUAL REVENUE OF ABOUT 6 BILLION INCLUDING RECENT ACQUISITIONS LAST YEAR ABOUT 26 OF ITS BUSINESS WAS FROM OFFICE PRODUCTS MAINLY AS A DISTRIBUTOR OF COPIERS AND FAX MACHINES THE UK IS A LOGICAL NEXT STEP FOR OUR OFFICE PRODUCTS GROUP AND ERSKINE HOUSE IS AN IDEAL FIT CONSIDERING THAT IT ALSO HAS A SIGNIFICANT PRESENCE IN THE US MARKET AND COMPLEMENTARY INTERESTS IN GERMANY SAID RAY B MUNDT ALCO CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE ERSKINE BID FOLLOWS RECENT ALCO MOVES AIMED AT STRENGTHENING ITS GEOGRAPHIC REACH IN THE US AND ABROAD IN MARCH ALCO AGREED TO ACQUIRE BUTLER PAPER CO GEORGIAPACIFIC CORP'S PAPER DISTRIBUTION UNIT AND IN 1992 IT ACQUIRED A 499 STAKE IN IMM OFFICE SYSTEMS HOLDING GMBH A LARGE DISTRIBUTOR OF OFFICE PRODUCTS IN GERMANY THE PROPOSED ACQUISITION OF ERSKINE PROMPTED MOODY'S INVESTORS SERVICE INC TO PLACE ALCO'S SINGLEA3 LONGTERM DEBT RATING AND BAA1 PREFERREDSTOCK RATING UNDER REVIEW FOR A POSSIBLE DOWNGRADE MOODY'S SAID IT WAS CONCERNED THAT THE ACQUISITION WILL PREVENT THE ANTICIPATED DEBT REDUCTION THAT MOODY'S HAD INCORPORATED IN ITS CURRENT RATING OF ALCO ALCO SAID ITS UK SUBSIDIARY ALCO OFFICE PRODUCTS PURCHASED 10 MILLION SHARES OR 22 OF ERSKINE FOLLOWING THE ANNOUNCEMENT OF ITS OFFER THE BID FOR ERSKINE IS AN IMPORTANT STEP ACCORDING TO JACK KELLY ANALYST AT GOLDMAN SACHS & CO ALTHOUGH ERSKINE'S US OPERATIONS HAVE BEEN HURT BY WEAK DEMAND THE BRITISH CONCERN'S US OPERATIONS WOULD LIKELY BENEFIT FROM ECONOMIES OF SCALE PROVIDED BY ALCO'S VAST NETWORK OF DISTRIBUTORS MR KELLY SAID 9305120118 930512 SCHERING'S MARKETING PACT MADISON NJ SCHERINGPLOUGH CORP AGREED TO MARKET US BIOSCIENCE INC'S ETHYOL IN WESTERN EUROPE ETHYOL IS A PROTECTIVE AGENT AGAINST THE TOXIC EFFECTS OF CHEMORADIOTHERAPY ACCORDING TO THE COMPANIES UNDER THEIR AGREEMENT SCHERINGPLOUGH WILL SELL ETHYOL FOR FIVE YEARS AFTER THE DRUG GAINS EUROPEAN APPROVAL US BIOSCIENCE WILL JOINTLY MARKET THE DRUG IN YEARS SIX AND SEVEN AND WILL HAVE SOLE MARKETING RIGHTS THEREAFTER SCHERINGPLOUGH ALREADY HOLDS MARKETING RIGHTS TO ETHYOL AND FOUR OTHER US BIOSCIENCE CANCER DRUGS IN A NUMBER OF COUNTRIES IN LATIN AMERICA AND ASIA 9305120117 930512 TUCSON ELECTRIC BONDS TUCSON ARIZ TUCSON ELECTRIC POWER CO SAID IT WILL REDEEM ALL 49 MILLION OUTSTANDING OF ITS 105 FIRST MORTGAGE BONDS DUE 2005 AT 10435 OF PRINCIPAL AMOUNT PLUS INTEREST THE UTILITY SAID THAT IN ORDER TO COMPLETE THE REDEMPTION IT RECEIVED A WAIVER FROM SOME PROVISIONS OF THE DEBT RESTRUCTURING AGREEMENT BETWEEN THE COMPANY AND ITS CREDITOR BANKS THE WAIVER REQUIRES THAT TUCSON ELECTRIC PREPAY 19 MILLION PRINCIPAL AMOUNT OF AN EXISTING TERM LOAN WITH THE CREDITOR BANKS TUCSON ELECTRIC WHICH PROVIDES POWER TO SOUTHERN ARIZONA SAID THE PLANNED BOND REDEMPTION AND PREPAYMENT OF BANK DEBT WILL SAVE IT ABOUT 6 MILLION A YEAR IN INTEREST EXPENSE THE UTILITY AS REPORTED UNDERWENT LONG NEGOTIATIONS WITH LENDERS THAT RESULTED IN A BROAD RESTRUCTURING AGREEMENT IN DECEMBER 9305120116 930512 MERCURY AIR CLEARS REPURCHASE LOS ANGELES MERCURY AIR GROUP INC SAID ITS BOARD APPROVED THE REPURCHASE OF UP TO 200000 ANNUALLY OF THE COMPANY'S COMMON STOCK AND 8 REDEEMABLE PREFERRED SHARES MERCURY AIR GROUP A SUPPLIER OF AVIATION FUEL AND GROUND SUPPORT SERVICES HAS ABOUT 22 MILLION SHARES OF COMMON STOCK AND 574000 OF THE 8 REDEEMABLE PREFERRED SHARES OUTSTANDING THE COMPANY'S COMMON STOCK WAS QUOTED YESTERDAY AT 306 DOWN SIX CENTS IN LATE TRADING ON THE AMERICAN STOCK EXCHANGE THE PREFERRED SHARES WERE QUOTED AT 1225 DOWN 125 CENTS 9305120115 930512 FIRST NATIONAL BANK DEBENTURES THE DEBENTURES WILL BE REDEEMED AT 105 OF THEIR PRINCIPAL AMOUNT AND THE REDEMPTION DATE WILL BE JULY 15 1993 INTEREST WILL CEASE TO ACCRUE ON THAT DATE THE DEBENTURE HOLDERS ALSO MAY CONVERT THEIR DEBENTURES INTO FIRST NATIONAL COMMON STOCK UNTIL JULY 12 AT THE CONVERSION PRICE OF 1851 A SHARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY FIRST NATIONAL STOCK WAS QUOTED AT 28 9305120114 930512 CREDIT RATINGS GREYHOUND LINES INC DALLAS MOODY'S INVESTORS SERVICE INC RAISED ITS DEBT RATING ON GREYHOUND LINES' SENIOR NOTES TO B1 FROM B2 ON EXPECTATIONS OF IMPROVED COST AND CAPITAL STRUCTURE MOODY'S ALSO CONFIRMED ITS B3 RATING ON THE BUS COMPANY'S CONVERTIBLE SUBORDINATED DEBENTURES THE RATINGS SERVICE SAID THE PURCHASE OF NEW BUSES WITH PROCEEDS FROM AN EQUITY OFFERING COUPLED WITH THE SETTLEMENT OF LABOR LITIGATION WILL BENEFIT GREYHOUND 9305120113 930512 REVIEW & OUTLOOK EDITORIAL ASIDES GROWING PAIN YOU HEAR A LOT THESE DAYS ABOUT WORKERSCOMP COSTS HURTING BUSINESS IN CALIFORNIA AND ELSEWHERE WHAT ISN'T MENTIONED AS OFTEN IS HOW BOGUS CLAIMS ARE STINGING TAXPAYERS ONE OUT OF FOUR EMPLOYEES OF THE CITY OF SAN DIEGO FILED A COMP CLAIM LAST YEAR AT A COST OF MORE THAN 11 MILLION IT'S ONLY THAT LOW BECAUSE SAN DIEGO HAS A LOWER TAB PER CLAIM THAN OTHER MAJOR CALIFORNIA CITIES 9305120112 930512 CORPORATE FOCUS NIKON OUTLOOK IS BLURRY AS CHIP MAKERS LOSE FLASH PROFIT PILLAR' IS ERODING BUT COMPANY LACKS FOCUSED PLAN ON DIVERSIFYING BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JUDGING FROM THE RECENT PERFORMANCE OF ITS SHARE PRICE THE OUTLOOK FOR NIKON CORP WOULD SEEM TO BE CLEAR AND BRIGHT THE CAMERA MAKER'S STOCK WHICH TRADES AS AMERICAN DEPOSITARY RECEIPTS IN NEW YORK HAS MORE THAN DOUBLED SINCE THE END OF LAST JUNE THAT COMPARES WITH A GAIN OF 33 BY THE TOKYO STOCK MARKET'S NIKKEI STOCK AVERAGE DURING THE SAME SPAN INVESTORS HAVE BET THAT A BURGEONING TURNAROUND IN WORLD MEMORYCHIP DEMAND WILL BOOST SALES OF NIKON'S MOST PROFITABLE PRODUCT SEMICONDUCTORMAKING MACHINES CALLED STEPPERS BUT THERE IS A PROBLEM WITH THIS PICTURE NIKON'S BIGGEST STEPPER CUSTOMERS ARE IN JAPAN AND JAPANESE MEMORYCHIP MAKERS SMARTING FROM THE CONSUMERELECTRONICS SLUMP DON'T APPEAR READY TO GO ON A BUYING BINGE WORSE NIKON DOESN'T HAVE A FOCUSED PLAN FOR DIVERSIFYING AWAY FROM SEMICONDUCTORMAKING MACHINES WHICH ACCOUNTED FOR NEARLY 30 OF ITS SALES IN THE YEAR ENDED MARCH 31 1992 AND MUCH OF ITS PROFIT NIKON NEEDS ANOTHER PROFIT PILLAR BUT IT DOESN'T HAVE ONE SAYS TAKESHI OKAZAKI AN ANALYST AT THE RESEARCH ARM OF COSMO SECURITIES CO A SNAPSHOT OF NIKON'S CURRENT FORTUNES YIELDS AN UNFLATTERING PORTRAIT FOR THE FISCAL YEAR THAT ENDED MARCH 31 THE COMPANY EXPECTS TO POST A PRETAX LOSS OF 22 BILLION YEN 197 MILLION ITS FIRST SINCE IT BEGAN KEEPING TRACK OF PRETAX EARNINGS IN 1964 THE CURRENT FISCAL YEAR LOOKS BAD TOO MANY ANALYSTS SAY NIKON WILL POST A SMALLER LOSS OR AT BEST BREAK EVEN NIKON HAS PULLED OFF BIG TURNAROUNDS BEFORE THE COMPANY STARTED OUT AS A MAKER OF OPTICAL EQUIPMENT FOR JAPAN'S MILITARY AFTER WORLD WAR II NIKON BUILT ITSELF INTO THE WORLD'S TOP MAKER OF HIGHQUALITY CAMERAS PAUL SIMON SANG ABOUT HIS NIKON IN THE LATE1970S HIT SONG KODACHROME WHEN CAMERA DEMAND BEGAN TOPPING OUT NIKON STARTED MAKING SEMICONDUCTOR EQUIPMENT AND PROSPERED AS JAPANESE ELECTRONICS COMPANIES CAME TO DOMINATE THE MARKET FOR MEMORY CHIPS NIKON NOW HAS AN ESTIMATED 60 SHARE OF THE WORLD STEPPER MARKET THE IMMEDIATE REASON FOR NIKON'S SLUMP IS THE COLLAPSE IN DEMAND FOR STEPPERS MACHINES THAT PRINT PATTERNS ON SEMICONDUCTOR WAFERS FOR THE YEAR ENDED MARCH 31 NIKON HAD FORECAST SALES OF 290 OF THE MACHINES THEN THE JAPANESE ELECTRONICS INDUSTRY'S RECESSION WENT FROM BAD TO WORSE THE COUNTRY'S CHIP MAKERS ISSUED A RASH OF CANCELLATIONS OF EQUIPMENT ORDERS NIKON SAYS THE COMPANY SAYS IT ENDED UP SELLING ABOUT 195 MACHINES JUST TWOTHIRDS OF ITS TARGET SOME ANALYSTS SAY DEMAND FOR NIKON'S STEPPERS ISN'T LIKELY TO IMPROVE MUCH THIS YEAR THANKS TO THE PERSONALCOMPUTER BOOM IN AMERICA US AND KOREAN MAKERS OF CHIPS FOR PCS WILL PROBABLY ORDER MORE EQUIPMENT AND THAT WILL HELP NIKON SOME BUT JAPANESE SEMICONDUCTOR MAKERS ARE NIKON'S MAIN CUSTOMERS AND THEY'RE IN BAD SHAPE NAOKI SATO OF MERRILL LYNCH JAPAN INC SAYS JAPANESE CHIP MAKERS WILL BOOST THEIR CAPITAL SPENDING JUST 3 THIS FISCAL YEAR HE FORECASTS A 48 INCREASE NEXT FISCAL YEAR BUT THAT WOULD STILL LEAVE INVESTMENT CONSIDERABLY LOWER THAN JUST A FEW YEARS AGO NIKON'S PROSPECTS ARE DISCOURAGING IN OTHER SECTORS TOO CONSIDER CAMERAS WHICH STILL ACCOUNT FOR NEARLY 50 OF THE COMPANY'S SALES THE HIGHER YEN WILL MAKE ITS JAPANESEMADE CAMERAS MORE EXPENSIVE FOR FOREIGN CONSUMERS CRIMPING EXPORT INCOME EVEN IF CAMERA DEMAND PICKS UP THE SECTOR WON'T BE VERY PROFITABLE FOR NIKON ANALYSTS SAY NIKON MADE A MINT SELLING CONSUMERS ON THE PRICEY AND PROFITABLE SINGLEREFLEX CAMERAS FAVORED BY PROFESSIONAL PHOTOGRAPHERS AND SERIOUS AMATEURS NOW PEOPLE PREFER CHEAPER COMPACT AUTOFOCUS CAMERAS THE PROFITABILITY OF COMPACT CAMERAS IS LOW SAYS MR OKAZAKI OF COSMO SECURITIES SO THE CONTRIBUTION TO NIKON'S OVERALL EARNINGS IS ALMOST NIL ALL THESE NEGATIVES MAKE IT EVEN MORE IMPORTANT THAT NIKON COME UP WITH ANOTHER BREAKTHROUGH PRODUCT NIKON'S ANSWER IS ELECTRONIC IMAGING SALES IN THIS NEW SECTOR WERE 10 BILLION YEN IN THE FISCAL YEAR ENDED MARCH 31 AND NIKON EXPECTS RECEIPTS OF 30 BILLION YEN IN THREE YEARS SAYS A NIKON SPOKESMAN AS AN EXAMPLE OF SUCCESS NIKON OFFICIALS SINGLE OUT COOL SCAN A 250000 YEN MACHINE THAT SCANS AND STORES PICTURES TAKEN BY CONVENTIONAL CAMERAS THE PICTURE DATA CAN BE ENTERED INTO COMPUTERS AND EDITED AND TRANSMITTED ELECTRONICALLY NIKON SAYS COOL SCAN WHICH COSTS ONEFOURTH WHAT HIGHEND SCANNERS FETCH WILL EXPAND THE MARKET FOR THE DEVICES IT HOPES TO SELL 20000 SETS A YEAR STILL ANALYSTS AREN'T IMPRESSED THEY SAY NIKON HAS BEEN PROMISING TO DO BIG THINGS IN ELECTRONIC IMAGING FOR YEARS BUT HAS FAILED TO DELIVER A MAJOR PRODUCT YET NIKON WILL HAVE TROUBLE MAKING A DENT IN THIS FIELD BECAUSE JAPAN'S ELECTRONICS GIANTS ARE LIKELY TO BE MORE COMPETITIVE NOT EVERYONE IS FORECASTING MORE LOSSES FOR NIKON COSMO'S MR OKAZAKI SAYS HE THINKS STEPPER SALES WILL PICK UP AND NIKON WILL EARN A PRETAX PROFIT OF FIVE BILLION YEN THIS FISCAL YEAR BUT SOME OBSERVERS SAY THE COMPANY IS IN FOR ANOTHER TOUGH YEAR KAORU UCHIDA AN ANALYST AT THE RESEARCH ARM OF DAIWA SECURITIES CO SAYS HE THINKS STEPPER DEMAND WILL RISE ABOUT 15 THIS FISCAL YEAR BUT THAT WON'T BE ENOUGH TO COVER A LOSS HE PROJECTS A PRETAX LOSS OF 750 MILLION YEN IN THE YEAR THAT BEGAN APRIL 1 NIKON ADMITS THE NAYSAYERS HAVE A POINT ABOUT ITS INABILITY TO DEVELOP A NEW CASH COW SUCH VIEWS AREN'T COMPLETELY WRONG BECAUSE WE HAVEN'T PRODUCED SIZABLE RESULTS YET IN ELECTRONIC IMAGING SAYS THE SPOKESMAN NIKON SAYS IT IS WORKING TO CUT COSTS PARTLY BY RESTRAINING HIRING BUT IS STILL SPENDING GENEROUSLY ON RESEARCH AND DEVELOPMENT OF NEW PRODUCTS THE COMPANY JUST OPENED A LAB OUTSIDE TOKYO FOR LONGTERM BASIC RESEARCH TO WORK ON SUCH FUTURE OFFERINGS AS XRAY EQUIPMENT ALTHOUGH THESE MACHINES WON'T REACH THE MARKET FOR YEARS IN THE MEANTIME NIKON SAYS THE COMPANY HOPES ITS STEPPER SALES WILL RISE 50 IN THE CURRENT YEAR ALTHOUGH IT ADDS THAT LAST YEAR'S FORECASTS PROVED OVERLY OPTIMISTIC 9305120111 930512 INTERNATIONAL DASA'S FOKKER INVESTMENT FRANKFURT THE EUROPEAN COMMUNITY COMMISSION CLEARED DEUTSCHE AEROSPACE AG'S PREVIOUSLY ANNOUNCED PLAN TO BUY 51 OF DUTCH AIRCRAFT MANUFACTURER FOKKER NV THE COMMISSION WHOSE APPROVAL WAS EXPECTED SAID IT FOUND NO COMPETITIVE PROBLEMS WITH THE GERMAN COMPANY'S PLAN DASA AS DEUTSCHE AEROSPACE IS KNOWN IS A UNIT OF GERMAN INDUSTRIAL CONGLOMERATE DAIMLERBENZ AG WE WILL PROMPTLY PROCEED WITH THE INTEGRATION OF FOKKER IN DEUTSCHE AEROSPACE AND IN THAT WAY LAY THE FOUNDATION FOR BUILDING A NEW STRUCTURE IN EUROPEAN REGIONAL AIRPLANE PRODUCTION SAID DASA CHAIRMAN JUERGEN SCHREMPP 9305120110 930512 WHO'S NEWS PRUDENTIAL SECURITIES HIRES RHEIN TO RUN BRANCH OFFICE SYSTEM NEW YORK PRUDENTIAL SECURITIES INC SAID THAT ALAN RHEIN JOINED THE FIRM FROM SHEARSON LEHMAN BROTHERS INC TO RUN ITS BRANCH OFFICE SYSTEM MR RHEIN 50 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND EXECUTIVE DIRECTOR OF THE BRANCH SYSTEM HE'S EXPECTED TO HELP PRUDENTIAL STEP UP ITS RETAIL SELLING EFFORTS NATIONWIDE HIS ADDITION IS EVIDENCE OF THE ONGOING COMMITMENT TO PROVIDING CLIENTS WITH THE HIGHEST QUALITY FINANCIAL ADVICE AND COUNSEL SAID GEORGE MURRAY PRESIDENT OF PRUDENTIAL'S RETAIL GROUP MR RHEIN WILL HAVE OVERALL SALES AND ADMINISTRATIVE RESPONSIBILITIES FOR PRUDENTIAL'S 300 RETAIL BROKERAGE BRANCHES AND 6000 BROKERS AND HE WILL REPORT TO MR MURRAY BEFORE JOINING PRUDENTIAL MR RHEIN WAS THE GROUP PRESIDENT OF SHEARSON LEHMAN'S NORTHERN GROUP WHICH CONSISTS OF 100 BRANCHES AND 2400 BROKERS IN THE NORTHEAST THE MANHATTANLONG ISLAND REGION AND GREAT LAKES AREA AT SHEARSON HE WAS KNOWN AS A REAL GOOD BOTTOMLINE NUMBERS GUY BUT WAS CONSIDERED TO BE PRETTY GRUFF A SENIOR SHEARSON EXECUTIVE SAID SHEARSON IS A SUBSIDIARY OF AMERICAN EXPRESS CO PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM IS A SUBSIDIARY OF THE PRUDENTIAL INSURANCE CO OF AMERICA 9305120109 930512 WHO'S NEWS PARAMOUNT COMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC NEW YORK STEPHEN BRENNER 44 YEARS OLD WAS PROMOTED TO THE POST OF EXECUTIVE VICE PRESIDENT BUSINESS AFFAIRS OPERATIONS AND GENERAL COUNSEL OF USA NETWORKS THE CABLE NETWORK JOINTLY OWNED BY THIS ENTERTAINMENT AND PUBLISHING CONCERN AND MCA INC A UNIT OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO IN HIS NEWLY CREATED POST HE WILL ALSO OVERSEE THE CONSTRUCTION OF THE COMPANY'S OPERATIONS CONTROL AND EDITING FACILITY IN NEW JERSEY AND HELP DEVELOP ITS INTERNATIONAL BUSINESS MR BRENNER JOINED USA NETWORKS IN 1982 AS VICE PRESIDENT BUSINESS AFFAIRS AND WAS PROMOTED TO SENIOR VICE PRESIDENT BUSINESS AFFAIRS OPERATIONS AND GENERAL COUNSEL IN 1987 9305120108 930512 WHITE HOUSE MOVES TO LIFT AIR TRAFFIC CONTROL BAN WASHINGTON THE CLINTON ADMINISTRATION IS EXPECTED TO LIFT THE BAN AGAINST REHIRING AIR TRAFFIC CONTROLLERS WHO WERE FIRED BY PRESIDENT REAGAN FOR AN ILLEGAL 1981 STRIKE ADMINISTRATION OFFICIALS SAID THE LABOR AND TRANSPORTATION DEPARTMENTS WORKING WITH THE OFFICE OF PERSONNEL MANAGEMENT COULD SEND A SET OF RECOMMENDATIONS TO THE WHITE HOUSE WITHIN A FEW DAYS OFFICIALS SAID DURING THE 1992 CAMPAIGN PRESIDENT CLINTON PROMISED AN EARLY REVIEW OF THE CONTROVERSIAL DISMISSAL OF 11400 CONTROLLERS THE END OF THE BAN ISN'T LIKELY TO HAVE MUCH EFFECT ON THE NATION'S AIR TRAFFIC CONTROL SYSTEM OR THE FORMER CONTROLLERS THE NATIONAL AIR TRAFFIC CONTROLLERS ASSOCIATION EXPECTS NO MORE THAN 3000 TO REAPPLY FOR THEIR OLD JOBS OF THOSE A SIGNIFICANTLY SMALLER NUMBER WOULD BE REALLY SERIOUS ABOUT RETURNING TO THE FEDERAL AVIATION ADMINISTRATION PAYROLL SAID JEFF BEDDOW SPOKESMAN FOR THE UNION MOST HAVE GONE OFF IN OTHER DIRECTIONS CURRENTLY THE FAA HAS 17900 CONTROLLERS OF WHOM 12000 ARE FULLY QUALIFIED TO TAKE ON ANY TASK AT THEIR FACILITY 9305120107 930512 COSTCO SALES ARE UP 15 KIRKLAND WASH COSTCO WHOLESALE CORP A WAREHOUSESTYLE RETAILER SAID SALES FOR THE FOUR WEEKS ENDED SUNDAY INCREASED 15 TO 581 MILLION FROM 505 MILLION A YEAR EARLIER INCLUDING A 4 INCREASE AT WAREHOUSES OPEN MORE THAN A YEAR 9305120106 930512 A FORMER EXECUTIVE AT CRAZY EDDIE INC PLEADS GUILTY TO PERJURY NEWARK NJ A FORMER EXECUTIVE WITH CRAZY EDDIE INC PLEADED GUILTY TO PERJURY IN CONNECTION WITH AN INVESTIGATION OF THE COLLAPSED ELECTRONICS RETAILER ABRAHAM GRINBERG FORMER DIRECTOR OF PURCHASING FOR CRAZY EDDIE PLEADED GUILTY TO THE CHARGE HE WILL BE A WITNESS IN THE MIDJUNE TRIAL OF CRAZY EDDIE FOUNDER EDDIE ANTAR AND OTHERS FACING FEDERAL RACKETEERING AND STOCKFRAUD CHARGES ARISING FROM THE 1987 COLLAPSE OF THE COMPANY THE 48YEAROLD MR GRINBERG OF WEST LONG BRANCH NJ ADMITTED HE LIED IN A 1991 COURTORDERED DEPOSITION IN CIVIL ACTION BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION SAID MICHAEL CHERTOFF NEW JERSEY US ATTORNEY MR GRINBERG FACES A MAXIMUM OF FIVE YEARS IN FEDERAL PRISON AND 250000 IN FINES MR GRINBERG AGREED TO THE GUILTY PLEA TO SPARE THE ORDEAL EXPENSE AND UNCERTAINTY OF THE COMING TRIAL AGAINST MR ANTAR AND THE OTHER DEFENDANTS ACCORDING TO HIS ATTORNEY MARK ARISOHN OF THE NEW YORK LAW FIRM OF GOODKIND LABATON 9305120105 930512 WHO'S NEWS DIED KA SWANSTROM 85 CHAIRMAN AND FOUNDER OF PENN ENGINEERING & MANUFACTURING CORP SATURDAY IN DOYLESTOWN PA A ROBERT LIEBERMAN 77 CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT OF ESQUIRE RADIO & ELECTRONICS INC FRIDAY OF COMPLICATIONS RESULTING FROM A BRIEF ILLNESS 9305120104 930512 WHO'S NEWS AQUARION CO AQUARION CO BRIDGEPORT CONN THIS WATER UTILITY AND WATERTESTING CONCERN PROMOTED RICHARD K SCHMIDT 49 YEARS OLD TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT HE CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF IEA AN ENVIRONMENTAL TESTING SERVICES UNIT IN CARY NC JANET M HANSEN 50 WAS PROMOTED TO SENIOR VICE PRESIDENT FROM VICE PRESIDENT MS HANSEN CONTINUES AS AQUARION'S TREASURER AND CHIEF FINANCIAL OFFICER AND AS VICE PRESIDENT OF FINANCE AND TREASURER OF THE STAMFORD WATER CO DIVISION OF ITS BRIDGEPORT HYDRAULIC CO UNIT 9305120103 930512 WORLD MARKETS TOKYO PRICES FINISH MIXED WHILE NIKKEI SAGS LONDON STOCKS FIRM AFTER LATESESSION REBOUND A WALL STREET JOURNAL NEWS ROUNDUP SHARE PRICES ENDED MIXED TUESDAY IN TOKYO AFTER A TUG OF WAR BETWEEN PROFITTAKING AND FRESH BUYING AND THE MARKET'S MAIN INDEX FELL IN LONDON STOCKS FIRMED IN THE LAST HOUR OF TRADING IN TOKYO THE NIKKEI 225STOCK INDEX WHICH RALLIED 24335 POINTS MONDAY DROPPED 11434 TO 2094037 ON WEDNESDAY THE NIKKEI INDEX FELL 15742 POINTS TO CLOSE THE MORNING SESSION AT 2078295 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A BRISK 700 MILLION SHARES UP SHARPLY FROM 5499 MILLION SHARES ON MONDAY GAINERS OUTNUMBERED LOSERS 667418 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 1828 POINTS MONDAY EASED 322 TO 163583 THE NIKKEI WHICH JUMPED AT THE OPENING ON STRENGTH IN THE FUTURES MARKET ENDED NEAR ITS TRADING LOW OF 2093234 LOSING FOOTING FROM ABOVE 21000 IN THE LAST 15 MINUTES OF ACTIVITY AFTER RECENT HEFTY GAINS FOR THE MARKET BUYING TUESDAY FOCUSED ON ISSUES WITH SMALL AND MEDIUM CAPITALIZATIONS ESPECIALLY HIGHTECHNOLOGY EXPORTERS GIVEN THE WEAKENING OF THE YEN IN FOREIGNEXCHANGE MARKETS AND ON SHARES THAT BENEFIT FROM JAPANESE DOMESTIC DEMAND SUCH AS DEPARTMENT STORES BUYERS INCLUDED OVERSEAS INVESTORS AND JAPANESE FINANCIAL INSTITUTIONS THE TOKYO MARKET'S MOOD HELD FIRM WITH THE JAPANESE CURRENCY'S SOFTENING AGAINST THE DOLLAR PROVIDING A NEW TRADING INCENTIVE BLUECHIP EXPORTERS WHICH WERE HURT BY THE JAPANESE CURRENCY'S BLITZ STARTING IN FEBRUARY ENDED FLAT TO LOWER DEFYING SOME EXPECTATIONS FOR NEW STRENGTH IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADDED 63 POINTS TO 28361 THE FT 30STOCK INDEX SLIPPED 26 POINTS TO 22154 VOLUME WAS 674 MILLION SHARES COMPARED WITH 5875 MILLION SHARES A DAY EARLIER AFTER STARTING OUT WEAKLY AND MOVING INDECISIVELY FOR MOST OF THE SESSION LONDON STOCKS LOST GROUND WHEN WALL STREET OPENED WEAKER BUT MANAGED THE LATE REBOUND ALONG WITH A LASTMINUTE RECOVERY IN THE FUTURES MARKET THE STOCK MARKET HAD OPENED WITH SKEPTICISM FROM THE PREVIOUS DAY'S SPECULATION ABOUT LOWER BRITISH INTEREST RATES THAT HAD DRIVEN STOCK PRICES UP A RALLY BY THE BRITISH POUND IN CURRENCY MARKETS WAS VIEWED AS FURTHER EVIDENCE THAT FEW BELIEVED BRITAIN WOULD CUT LENDING RATES SOON IN FRANKFURT SHARE PRICES CLOSED MIXED AFTER MOVING IN A NARROW RANGE ON THIN TURNOVER THE DAX 30STOCK INDEX ROSE 712 POINTS TO 161615 THE LACKLUSTER SESSION WAS LARGELY ATTRIBUTED TO THE ABSENCE OF FOREIGN INSTITUTIONAL INVESTORS WHO APPEARED TO BE AWAITING ANY DEVELOPMENTS IN THE GERMAN RECESSION THE CENTRAL BANK'S MONETARY POLICIES AND THE EASTERN GERMAN METALWORKER STRIKE IN PARIS GLOOMY FRENCH CORPORATE SALES FIGURES AND AN EVEN GLOOMIER ECONOMIC OUTLOOK PUSHED THE CAC 40 INDEX DOWN 12 FOR THE DAY AND DOWN 018 FOR THIS YEAR SELLING TOUCHED ALMOST ALL SECTORS AND HIT INDUSTRIAL ISSUES HARDEST ON INDICATIONS OF SUSTAINED WEAKNESS IN FRENCH AND INTERNATIONAL DEMAND AND THE UNVEILING LATE MONDAY BY FRENCH PRIME MINISTER EDOUARD BALLADUR OF A DEFICITCUTTING AND GROWTHSTIMULATING PLAN IN WHICH THE GOVERNMENT ESTIMATED THE ECONOMY WILL CONTRACT 04 THIS YEAR MILAN STOCKS ENDED WEAKER AS TECHNICAL DEADLINES THIS WEEK CONTINUED TO DOMINATE INVESTORS' ACTIVITY THOUGH PRICES RECOVERED FROM LOWS TOWARD THE END OF THE SESSION MADRID SHARE PRICES CLIMBED SHARPLY MOSTLY IN A TECHNICAL REACTION TO SEVERAL PREVIOUS SESSIONS OF LOSSES STOCKHOLM PRICES FELL ENDING AT THE DAY'S LOWS ON DISAPPOINTING EARNINGS IN THE TELECOMMUNICATIONS SECTOR IN ZURICH SHARES ROSE AMID LOTS OF LIQUIDITY MOVING INTO SWITZERLAND BECAUSE OF POLITICAL AND ECONOMIC PROBLEMS IN OTHER EUROPEAN COUNTRIES FUNDS ALSO WERE MOVING FROM INTERESTBEARING INSTRUMENTS INTO STOCKS UNDERPINNED TOO BY A HIGHER DOLLAR SYDNEY SHARES RALLIED ON POSITIVE CORPORATE DEVELOPMENTS HONG KONG STOCKS SHOT UP ON STRONG FUND BUYING INTEREST LED BY RECOVERY OF THE BANKING SECTOR AND BY PROPERTY STOCKS MANILA EQUITIES TUMBLED ON PROFITTAKING FOLLOWING WEAK CORPORATE EARNINGS REPORTS SEOUL'S CORRECTION CONTINUED AND STOCK PRICES FINISHED LOWER THE MARKET FAILED TO REACT TO THE SOUTH KOREAN GOVERNMENT'S PROPOSED GUIDELINES FOR REVAMPING FINANCIAL MARKETS AMONG CORPORATE DEVELOPMENTS IN LONDON GENERAL ACCIDENT JUMPED 18 PENCE OR 31 TO 591 PENCE 905 EXCEEDING MARKET EXPECTATIONS THE SCOTTISH GENERAL AND LIFE INSURER POSTED FIRSTQUARTER PRETAX PROFIT OF 419 MILLION 642 MILLION COMPARED WITH A YEAREARLIER LOSS OF 29 MILLION AS BRITISH UNDERWRITING LOSSES WERE CUT TO 41 MILLION FROM 652 MILLION IN PARIS PECHINEY INTERNATIONAL LOST 25 FRENCH FRANCS OR 13 TO 193 FRANCS 3559 THE PACKAGING UNIT OF FRENCH STATEOWNED PECHINEY SA SAID IT IS LOOKING FOR SEVERAL MAJOR ACQUISITIONS IN THE NEXT TWO YEARS POSSIBLY IN LATIN AMERICA AND ASIA TO BOOST PACKAGING BUSINESS REVENUE 17 TO 35 BILLION FRANCS 646 BILLION A YEAR PECHINEY INTERNATIONAL WANTS TO DEVELOP ITS THREE STRONGEST SECTORS BEVERAGE CANS FLEXIBLE PLASTIC PACKAGING AND PACKAGING FOR BODYCARE PRODUCTS HAVAS PLUNGED 128 OR 3 TO 413 THE TRAVEL AND MEDIA COMPANY SAID THAT 1993 PROFIT THIS YEAR COULD BE LITTLE CHANGED FROM THE YEAREARLIER 823 MILLION FRANCS BUT THAT CONTINUED SLUGGISH ECONOMIC CONDITIONS IN EUROPE DON'T SIGNAL A SIGNIFICANT INCREASE IN REVENUE IN COMING MONTHS LAST YEAR REVENUE TOTALED 282 BILLION FRANCS IN STOCKHOLM PROCORDIA SLUMPED FOUR SWEDISH KRONOR OR 23 TO 173 KRONOR 2278 THE FOOD AND DRUG CONGLOMERATE'S FIRSTQUARTER PRETAX PROFIT ROSE 14 TO 128 BILLION KRONOR FROM A YEAR EARLIER BUOYED BY BIG ONETIME CAPITAL GAINS BUT OPERATING PROFIT PLUMMETED 28 REFLECTING ANEMIC TOBACCO MARKETS AND SLOWING SALES OF SOME IMPORTANT PHARMACEUTICAL PRODUCTS 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 9305120102 930512 LESLIE FAY GETS CREDIT APPROVAL NEW YORK LESLIE FAY COS A MAKER OF WOMEN'S FASHION APPAREL SAID IT RECEIVED FINAL APPROVAL FROM THE US BANKRUPTCY COURT IN MANHATTAN FOR ITS 150 MILLION DEBTORINPOSSESSION REVOLVING CREDIT FACILITY THE ONEYEAR FACILITY BEING PROVIDED BY A BANK CONSORTIUM LED BY CITIBANK WILL BE USED TO ISSUE LETTERS OF CREDIT TO FOREIGN SUPPLIERS AND FOR WORKING CAPITAL NEEDS AS PREVIOUSLY REPORTED LESLIE FAY FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION FROM CREDITORS AFTER IT DISCLOSED IRREGULARITIES IN ITS YEAREND AUDIT THE DISCLOSURE PROMPTED A SEVERE CONSTRICTION OF ITS CREDIT FORCING IT INTO BANKRUPTCY COURT 9305120101 930512 WHO'S NEWS CURTISSWRIGHT NAMES PRESIDENT AS BRINSFIELD STEPS DOWN FROM POST LYNDHURST NJ CURTISSWRIGHT CORP SAID SHIRLEY D BRINSFIELD 70 YEARS OLD STEPPED DOWN AS PRESIDENT AND CHIEF EXECUTIVE BUT WILL REMAIN CHAIRMAN THE COMPANY WHICH MAKES COMPONENTS AND SYSTEMS FOR AEROSPACE AND INDUSTRIAL USES ELECTED DAVID LASKY 60 PRESIDENT MOST RECENTLY SENIOR VICE PRESIDENT AND GENERAL COUNSEL MR LASKY WAS ALSO ELECTED A DIRECTOR INCREASING THE BOARD'S SIZE TO EIGHT THE POST OF CHIEF EXECUTIVE WILL REMAIN VACANT MR BRINSFIELD SAID HE HAD LARGELY ACCOMPLISHED THE GOALS WHICH HE SET FOR HIMSELF UPON BECOMING CHIEF EXECUTIVE EARLY IN 1990 FOLLOWING THE DEATH OF LONGTIME CHAIRMAN T ROLAND BERNER HE ADDED THAT CURTISSWRIGHT CONTINUES TO EXPLORE THE POSSIBLE SALE OF ITS FLIGHT SYSTEMS AND METAL IMPROVEMENT CO UNITS WHICH COLLECTIVELY PROVIDED ABOUT 80 OF THE COMPANY'S 1992 SALES OF 180 MILLION A COMPANY SPOKESMAN SAID MR LASKY WOULD CONTINUE THE EFFORT TO SELL THE UNITS BESIDES THOSE UNITS BEING OFFERED FOR SALE CURTISSWRIGHT HAS TWO BUSINESS UNITS A MAKER OF VALVES FOR THE NUCLEAR POWER INDUSTRY AND FOR NUCLEAR NAVAL VESSELS AND A REALESTATE GROUP WITH SEVERAL INDUSTRIAL PROPERTIES 9305120100 930512 WHO'S NEWS COMMONWEALTH EDISON CO COMMONWEALTH EDISON CO CHICAGO PAMELA B STROBEL 40 YEARS OLD FORMERLY A PARTNER IN THE LAW FIRM OF SIDLEY & AUSTIN WAS NAMED VICE PRESIDENT AND GENERAL COUNSEL EFFECTIVE JUNE 1 MS STROBEL SUCCEEDS HARLAN M DELLSY WHO WAS NAMED VICE PRESIDENT STRATEGIC PLANNING 9305120099 930512 AT&T REACHES LICENSING PACT WITH TINY FIRM SPECTRUM INFORMATION'S BROAD PATENTS ENHANCE WIRELESS DATA MARKET BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO AGREED TO LICENSE SPECTRUM INFORMATION TECHNOLOGIES INC'S PATENTS FOR TRANSMITTING DATA OVER CELLULAR NETWORKS THUS GRANTING TINY SPECTRUM THE VALIDATION IT SOUGHT IN A NASCENT BUT POTENTIALLY HUGE INDUSTRY AT&T ALSO SAID IT MIGHT INVEST MORE THAN 10 MILLION IN SPECTRUM UNDER TERMS OF THE AGREEMENT WHICH COVERS ALL AT&T UNITS INVOLVED IN MAKING AND SELLING WIRELESS PHONE AND COMPUTER EQUIPMENT SPECTRUM HOLDS BROAD PATENTS COVERING SOFTWARE AND HARDWARE THAT ALLOW A COMPUTING DEVICE SUCH AS A LAPTOP COMPUTER TO SEND DATA OVER CELLULAR PHONE NETWORKS INSTEAD OF REGULAR PHONE WIRES AT STAKE IS A SIZABLE SHARE OF THE WIRELESS DATA MARKET WHICH WILL GROW TO FIVE MILLION USERS BY 1997 FROM MORE THAN 600000 TODAY ACCORDING TO ARTHUR D LITTLE IN CAMBRIDGE MASS CONSULTING FIRM IN FACT ANALYSTS PREDICT THE MARKET FOR TINY POCKET DATA COMMUNICATION DEVICES USING THE WIRELESS NETWORKS WILL RIVAL THE PERSONAL COMPUTER INDUSTRY IN SIZE BY THE TURN OF THE CENTURY ALSO COVERED BY THE LICENSE ARE AT&T AFFILIATES INCLUDING MCCAW CELLULAR COMMUNICATIONS INC THE NATION'S LARGEST CELLULAR PHONE COMPANY IN WHICH AT&T IS PLANNING TO PURCHASE A MINORITY STAKE AND EO WHICH BUILDS PORTABLE DATA COMMUNICATORS AS PART OF ITS DEAL WITH SPECTRUM AT&T SAID IT ISSUED A 10 MILLION INTERESTFREE NOTE TO SPECTRUM PAYABLE WITHIN FIVE YEARS IF SPECTRUM'S STOCK DOUBLES FROM ITS 275ASHARE PRICE ON MARCH 1 IN OVERTHECOUNTER TRADING SPECTRUM WAS QUOTED AT 475 UP 69 CENTS ON HEAVY VOLUME OF MORE THAN FOUR MILLION SHARES OR MORE THAN EIGHT TIMES ITS NORMAL DAILY VOLUME AMONG SPECTRUM'S PATENTS IS A SOFTWARE DESIGN THAT EASILY SEPARATES DATA FROM VOICE TRANSMISSIONS OVER THE CELLULAR NETWORK ACCORDING TO SPECTRUM PRESIDENT PETER CASERTA THIS HE SAID WOULD MAKE IT UNNECESSARY FOR CELLULAR PHONE COMPANIES TO CONSTRUCT SEPARATE DIGITAL DATA NETWORKS SUCH AS THOSE BEING PLANNED BY MCCAW AND OTHER COMPANIES COMPLAINING OF PATENT INFRINGEMENT MR CASERTA HAS BEEN TRYING TO FORCE SOME OF THE BIGGEST PLAYERS IN COMPUTERS AND COMMUNICATIONS TO LICENSE THE COMPANY'S PATENTS LAST DECEMBER HE CITED NUMEROUS DATA MODEM MANUFACTURERS COMPUTER MAKERS AND CHIP MAKERS AS TARGETS MR CASERTA HAD TOLD THE WALL STREET JOURNAL THAT HE WOULD FORCE AT&T TO STOP SELLING ITS SAFARI LAPTOP WITH A SPECTRUMDESIGNED CABLE ATTACHMENT IF AT&T DIDN'T SIGN A LICENSING AGREEMENT BUT AN AT&T EXECUTIVE FAMILIAR WITH THE NEGOTIATIONS SAID AT&T HADN'T HALTED SHIPMENTS OF THE SAFARI WHICH IS BUILT SPECIFICALLY TO RUN ON WIRELESS SYSTEMS AN AT&T SPOKESMAN CONFIRMED THAT AN AGREEMENT HAD BEEN STRUCK WITH SPECTRUM BUT HE SAID SPECTRUM WOULD ONLY GET ROYALTIES TO THE EXTENT THAT WE USE THEIR PATENTS AT THE MOMENT WE ARE ONLY USING THEIR WIRELESS CABLE FOR OUR SAFARI LAPTOP COMPUTER BUILT BY AT&T'S NCR CORP THE AT&T AGREEMENT NONETHELESS VALIDATES SPECTRUM'S CLAIMS AT&T IS THE FIRST MAJOR DEAL WE'VE EVER DONE MR CASERTA SAID IN A TELEPHONE INTERVIEW FROM HIS MANHASSET NY OFFICE THIS GIVES US THE VALIDITY OF OUR PATENTS TO MAKE LICENSING AGREEMENTS WITH PLAYERS LIKE INTEL CORP ROCKWELL INTERNATIONAL CORP MOTOROLA INC AND OF COURSE THE JAPANESE MR CASERTA WHO SAID HE HAS A MEETING SCHEDULED FOR NEXT WEEK WITH ROCKWELL SAID NUMEROUS COMPANIES ARE SELLING EQUIPMENT WITH SPECTRUM'S TECHNOLOGY BUT ARE NOT PAYING ROYALTIES OR LICENSING FEES FOR THE EQUIPMENT ON MONDAY SPECTRUM SAID MEGAHERTZ CORP ONE OF THE NATION'S LARGEST WIRELESS DATA MODEM MANUFACTURERS AGREED TO LICENSE SPECTRUM'S PATENTS SPECTRUM IS EMBROILED IN SEVERAL LEGAL DISPUTES WITH OTHER COMPANIES INCLUDING MICROCOM INC AND DATA RACE INC WHICH MAKES THE WIRELESS MODEM USED IN AT&T'S LAPTOP THIS IS ANOTHER INDICATION OF AT&T'S ATTEMPT TO MAKE SURE THAT THE MISTAKES THAT WERE MADE IN THE COMPUTER AND CELLULAR INDUSTRIES WITH MISMATCHED SYSTEMS THAT COULDN'T COMMUNICATE WON'T BE MADE AGAIN AND STALL THE WIRELESS MESSAGING REVOLUTION SAID PETER BERNSTEIN SENIOR VICE PRESIDENT OF RESEARCH AT PROBE RESEARCH INC CEDAR KNOLLS NJ ANY REINFORCEMENT OF THE REVOLUTION SHOULD PLAY INTO SPECTRUM'S HANDS MR CASERTA PREDICTED THE AT&T PACT WILL BE ONE OF THE MOST IMPORTANT LICENSING AGREEMENTS OF THE DECADE GENERATING HUNDREDS OF MILLIONS OF DOLLARS IN ROYALTIES FROM EQUIPMENT SOLD BY AT&T AND ITS AFFILIATES 9305120098 930512 ENTERPRISE CANADIAN ENTREPRENEURS COMPLAIN VAT SPELLS TROUBLE THEIR EXPERIENCE SUGGESTS THE TAX CAN BE A BIG HEADACHE FOR SMALL FIRMS BY MICHAEL T MALLOY STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO THE CLINTON ADMINISTRATION HAS DECIDED AGAINST A VALUEADDED TAX FOR NOW AS A WAY TO PAY FOR HEALTHCARE REFORMS IN THE US BUT THE VAT A KIND OF NATIONAL SALES TAX UNDOUBTEDLY WILL COME UP AGAIN BECAUSE IT HAS RAISED CONSIDERABLE REVENUE IN OTHER COUNTRIES AMERICAN SMALLBUSINESS GROUPS FEARFUL OF HEAVY RECORDKEEPING BURDENS WELCOME THE REPRIEVE CANADA'S TWOYEAR EXPERIENCE WITH A VAT SHOWS HOW BIG A HEADACHE THE TAX CAN BE FOR ENTREPRENEURS ESPECIALLY VERY SMALL ONES A VAT IS A SALES TAX COLLECTED BY BUSINESSES ON EVERY STAGE OF PRODUCTION AND DISTRIBUTION WHOLESALING MANUFACTURING RETAILING THE WORKS THE TAX MAY INCLUDE SERVICES SUCH AS LEGAL FEES THE CANADIAN VERSION CALLED THE GOODS AND SERVICES TAX TOOK EFFECT IN JANUARY 1991 IT REPLACED A HEFTY MANUFACTURERS' SALES TAX ON MANY GOODS THE RECESSION HAS PREVENTED THE GST FROM BRINGING IN AS MUCH REVENUE AS THE OLD TAX BUT THE TAX HAS HELPED TO BOOST EXPORTS MARK DRAKE PRESIDENT OF THE CANADIAN EXPORTERS ASSOCIATION SAYS MANY MEMBERS REPRESENTING BUSINESSES OF ALL SIZES REPORT THAT IT WAS BENEFICIAL TO THEIR BOTTOM LINES IT'S A DIFFERENT STORY FOR A NUMBER OF SMALL FIRMS HOWEVER THE CANADIAN FEDERATION OF INDEPENDENT BUSINESS SAYS THE VAT IS SUCH AN ADMINISTRATIVE NIGHTMARE THAT IT COSTS THE ECONOMY ABOUT 20 CENTS TO COLLECT EACH DOLLAR THAT GOES TO THE GOVERNMENT ABOUT 88 OF THAT BURDEN FALLS ON BUSINESSES WITH 20 OR FEWER EMPLOYEES THE SMALLBUSINESS GROUP ESTIMATES THE MAIN PROBLEM CANADIAN PROVINCES ALSO HAVE SALES TAXES WITH DIFFERING RULES ON WHAT TO TAX WHEN TO COLLECT THEM AND HOW TO HANDLE THINGS SUCH AS CENTSOFF COUPONS IN THE US WHERE STATE SALES TAXES ARE COMMON A VAT COULD POSE THE SAME PROBLEMS FOR SMALLER ENTERPRISES ERNESTINE VAN HOUTEN FINDS THE GST A DAILY HEADACHE I AVERAGE AN HOUR ON TAXES EVERY DAY LONGER THAN UNDER THE OLD SYSTEM SAYS MS VAN HOUTEN A PARTNER IN A FIVEPERSON TORONTO CONCERN THAT SELLS AND REPAIRS MARINE ENGINES SHE MUST ALSO CALCULATE THE PROVINCIAL SALES TAX AND FIVE DIFFERENT PAYROLL TAXES A BUSINESS MUST KEEP SCRUPULOUS TRACK OF ITS GST PAYMENTS IN ORDER TO KEEP ITS OWN TAX LIABILITY LOW IF IT'S SOMETHING LIKE GAS FOR THE CAR YOU'VE GOT TO ADD UP ALL THOSE SILLY LITTLE RECEIPTS AT THE END OF THE DAY AND PUT THEM IN THE COMPUTER MS VAN HOUTEN ADDS ON CREDIT CARDS YOU HAVE TO TAKE EACH SLIP AND FIGURE OUT THE GST ON EVERY ONE WHOLESALERS FOR INSTANCE ADD THE 7 CANADIAN TAX TO EVERY BILL THEY SEND TO LINDA VOYTOVECH'S LINGERIE SHOP IN TORONTO SO DOES THE ELECTRIC COMPANY THE WINDOWWASHING SERVICE AND THE STORE WHERE SHE BUYS CELLOPHANE TAPE IN TURN SHE ADDS 7 TO EACH SALE EVERY MONTH HER HUSBAND BORIS SUBTRACTS THE TAX PAID TO HER SUPPLIERS FROM THE TAX COLLECTED FROM HER CUSTOMERS HE SENDS THE GOVERNMENT A CHECK FOR THE DIFFERENCE WHICH REPRESENTS 7 OF THE VALUE THAT HER SHOP HAS ADDED THE GST IS BILLED AS A SIMPLE TAX SAYS PETER WOOD A TORONTO PARTNER FOR ACCOUNTANTS ERNST & YOUNG AND A SPECIALIST IN THE CANADIAN TAX BUT IF IT'S SO SIMPLE WHY IS MR WOOD WRITING A THIRD EDITION 800 PAGES LONG OF HIS BOOK ON A TAX THAT IS ONLY TWO YEARS OLD AND WHY DOES HE CHEERFULLY PREDICT THAT GST WORK WILL KEEP ME GOING UNTIL RETIREMENT IMPOSING A VAT ON TOP OF PROVINCIAL SALES TAXES DID COMPLICATE LIFE FOR MANY SMALL BUSINESSES WE CARRY 7000 OR 8000 LINES OF MERCHANDISE SAYS EGON POTOTSCHNIK OWNER OF A TORONTO SUPERMARKET ABOUT 80 OF THEM HAVE NO GST BUT WHICH ONES UNSALTED PEANUTS ARE CONSIDERED GROCERIES AND THUS FREE OF THE GST SALTED PEANUTS CONSIDERED SNACKS ARE TAXABLE ONE CUPCAKE IS TAXABLE BUT A PACKAGE OF SIX ISN'T DIAPERS BABY OIL AND SANITARY NAPKINS ARE SUBJECT TO THE GST BUT ARE FREE OF THE PROVINCIAL SALES TAX BOTH TAXES NO TAX OR SINGLE TAX WE HAD TO TAKE THAT DECISION AWAY FROM THE CASHIER RECALLS MR POTOTSCHNIK ENVISIONING A SLOWMOTION TRAFFIC JAM THAT COULD HAVE ENGULFED HIS CHECKOUT COUNTERS HE SAYS HE SPENT ABOUT 60000 TO PREPARE FOR THE GST HE REPLACED HIS MANUAL REGISTERS WITH SCANNER SYSTEMS BROUGHT IN CARPENTERS TO REBUILD THE CHECKOUT LANES RETRAINED HIS 36MEMBER STAFF AND GOT EVERYTHING DONE OVER NEW YEAR'S IT ISN'T JUST SMALL RETAILERS THAT HAVE HAD PROBLEMS COPING WITH CANADA'S VAT ATLANTIS FILMS LTD IN TORONTO SETS UP A SPECIALPURPOSE COMPANY WITH SEPARATE INVESTORS FOR EACH TELEVISION AND MOVIE PRODUCTION THESE COMPANIES CONTRACT WITH DOZENS OF TINY FIRMS THAT MAY CONSIST OF A SINGLE ACTOR OR SOUND TECHNICIAN ACTORS AND WRITERS AREN'T EXACTLY FINANCIALLY ORIENTED THEY HAVE HAD TO COLLECT GST FROM US AND IT WAS SCARY SAYS MONA STIRLING ATLANTIS'S VICE PRESIDENT OF FINANCE SOMETIMES ATLANTIS'S GST BILLS TRICKLE IN MONTHS AFTER A PRODUCTION ENDS THE GST CAUSES OTHER HEADACHES FOR ATLANTIS AS WELL ITS FINANCING OFTEN INCLUDES AGREEMENTS BY NETWORKS OR TV STATIONS TO BUY RIGHTS TO A PRODUCTION TECHNICALLY A PURCHASE SO A 100000 PROGRESS PAYMENT MUST BE ACCOMPANIED BY A 7000 GST PAYMENT PAYMENT SCHEDULES MAY LAST A YEAR AFTER A PRODUCTION IS FINISHED BUT ATLANTIS MUST PAY ITS GST THE MONTH AFTER INCOMING BILLS ARRIVE IT'S HARDER TO DO CASHFLOW PROJECTIONS ONE MONTH WE ARE PAYING OUT 7 OF OUR COSTS IN GST THE NEXT MONTH WE MAY BE GETTING A CREDIT SAYS MS STIRLING NOTES ANNEMARIE CORMIER PRODUCTION ACCOUNTANT ON TECKWAR A TV SERIES BASED ON SCIENCEFICTION NOVELS BY STAR TREK STAR WILLIAM SHATNER IF A PROJECT IS UP AND OUT OF HERE IN FIVE MONTHS WE STILL COULD BE WAITING FOR 100000 IN GST REBATES CANADIAN BUSINESSES CAN INCLUDE THE GST IN THEIR PRICES THOUGH FEW DO THE OPPOSITE IS TRUE IN EUROPEAN COUNTRIES WITH A VAT IN CANADA RETAILERS DON'T WANT PRICES TO APPEAR HIGHER THAN THEY ALREADY ARE MRS VOYTOVECH SAYS HER CUSTOMERS STILL LOOK KIND OF STUNNED WHEN THEY SEE HOW LITTLE CHANGE THEY GET AFTER SHE ADDS PROVINCIAL AND FEDERAL TAXES TO THEIR BILLS MS VAN HOUTEN SAYS AS MANY AS 80 OF HER CLIENTS ASK WHAT THEY CAN GET IMPLYING A TAX BREAK IF THEY PAY IN CASH SHE HAS TAKEN REFUGE BEHIND A SIGN ON HER DESK THAT PROMISES DISCOUNTS FOR CASH IF A CUSTOMER BRINGS HER A NOTE FROM THE PRIME MINISTER OF CANADA AND ANOTHER FROM THE PREMIER OF ONTARIO 9305120097 930512 MARKETING & MEDIA HOUSE PANEL CLEARS PLAN TO LET FCC AUCTION AIRWAVES BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE ENERGY AND COMMERCE COMMITTEE VOTED 368 TO SEND TO THE FULL HOUSE A BILL THAT WOULD LET THE FEDERAL COMMUNICATIONS COMMISSION AUCTION THE AIRWAVES WHEN LICENSING SUCH NEW WIRELESS SERVICES AS POCKET PHONES COMPETITIVE BIDDING FOR AIRWAVE USE FOR PERSONALCOMMUNICATIONS DEVICES SUCH AS POCKET PHONES AND HANDHELD COMPUTERS IS EXPECTED TO GENERATE 7 BILLION FOR THE FEDERAL GOVERNMENT IN THE NEXT FIVE YEARS THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THE BILL GOES TO THE HOUSE AS PART OF A BUDGET RECONCILIATION PACKAGE THE BILL ALSO WOULD TRANSFER 200 MEGAHERTZ OF THE RADIO SPECTRUM FROM FEDERALGOVERNMENT USE TO PRIVATESECTOR USE AND IT WOULD REQUIRE SERVICES COMPETING WITH CELLULAR TELEPHONES INCLUDING PERSONAL COMMUNICATIONS SERVICES AND CERTAIN MOBILERADIO SERVICES TO COMPLY WITH REGULATIONS THAT GOVERN CELLULAR CARRIERS ALSO IT WOULD REQUIRE THE FCC TO ADOPT GUIDELINES ALLOWING INNOVATORS AND SMALL BUSINESSES TO PARTICIPATE IN THE BIDDING PROCESS THE SENATE COMMERCE COMMITTEE MEANWHILE IS EXPECTED TO APPROVE AN AUCTION BILL SOON BUT ITS SCOPE IS UNCLEAR AIDES HAVE SAID THAT LAWMAKERS ARE LIKELY TO EXPAND PLANS FOR A RELATIVELY SMALL TEST OF AUCTION PROCEDURES THE NOTION OF COMPETITIVE BIDDING FOR THE RADIO SPECTRUM ISN'T NEW REPUBLICAN REP MICHAEL OXLEY OF OHIO INTRODUCED SPECTRUMAUCTION LEGISLATION FOUR YEARS AGO AND THE IDEA TURNED UP IN BUDGET PLANS FROM BOTH THE REAGAN AND BUSH ADMINISTRATIONS DEMOCRATS HAVE EMBRACED THE IDEA THIS YEAR AS A WAY TO RAISE MONEY AND REPLACE THE PROBLEMPLAGUED LOTTERY SYSTEM WHICH HAS BEEN USED TO ALLOCATE THE RADIOFREQUENCY SPECTRUM FOR CELLULAR TELEPHONES AND SOCALLED WIRELESS CABLE TELEVISION SERVICES THE LOTTERY SYSTEM HAS ENCOURAGED PARTICIPATION BY SPECULATORS WITH NO INTENTION OF KEEPING THE LICENSES THEY WIN AND IT HAS SPAWNED NUMEROUS SCAMS AIMED AT INDIVIDUALS INTERESTED IN APPLYING FOR SPECTRUM USE 9305120096 930512 TUESDAY'S MARKETS STOCKS GAIN BOND PRICES HOLD STEADY DOW JONES INDUSTRIALS ARE PROPELLED HIGHER BY LATE BUY ORDERS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A LATE SPURT OF COMPUTERGUIDED BUYING DROVE THE DOW JONES INDUSTRIAL AVERAGE SHARPLY HIGHER BOND PRICES WERE ABOUT UNCHANGED AND THE DOLLAR FELL THE DOW JONES INDUSTRIALS CLIMBED 2547 POINTS TO 346875 JUST 10 POINTS SHY OF THE ALLTIME HIGH OF 347861 STANDARD & POOR'S 500STOCK INDEX ROSE 156 TO 44436 AND THE NASDAQ COMPOSITE INDEX INCHED UP 024 TO 68306 ANALYSTS SAID INVESTORS' RELIEF OVER THE SUCCESS OF THE TREASURY'S THREEYEARNOTE AUCTION PROVIDED SOLID SUPPORT FOR STOCK PRICES BEFORE THE COMPUTERGUIDED BUY ORDERS SENT THE INDUSTRIAL AVERAGE UP SHARPLY IN THE CLOSING HOUR OF TRADING THE TREASURY SOLD 16 BILLION IN THREEYEAR NOTES IN THE FIRST LEG OF ITS 35 BILLION REFUNDING THAT WAS A PRESSURE OVERHANGING THE MARKET SAID GENE JAY SEAGLE DIRECTOR OF TECHNICAL RESEARCH AT GRUNTAL & CO MR SEAGLE SAID STEADY INTEREST RATES ALONG WITH HUGE AMOUNTS OF CASH IN THE HANDS OF INVESTORS WILL HELP PROPEL STOCKS HIGHER WHAT THIS MARKET IS SHOWING US IS THAT THE OLD SUPPLYANDDEMAND FACTOR IS ALIVE AND WELL HE SAID GAIL DUDACK MARKET STRATEGIST AT SG WARBURG ARGUED THAT THE MARKET IS UNDERPINNED BY SLOWLY IMPROVING ECONOMIC CONDITIONS SHE NOTED THAT COMPANIES REPORTED MORE POSITIVE EARNINGS SURPRISES THAN NEGATIVE ONES IN THE FIRST QUARTER THERE'S REASON TO BELIEVE THAT THE SECOND QUARTER WILL BE EVEN BETTER SHE SAID BUT MS DUDACK ADDED THAT UNCERTAINTY WILL CONTINUE TO PLAGUE THE MARKET AS INVESTORS AWAIT A DEFINITIVE ECONOMIC PROGRAM FROM THE CLINTON ADMINISTRATION THE ABILITY TO FORECAST IS VERY POOR BECAUSE THE CLINTON PROGRAMS HAVE CLEAR INVESTMENT IMPLICATIONS BUT NOTHING HAS BEEN CLEARLY OUTLINED YET SHE SAID BOND PRICES WERE MIXED IN SLUGGISH TRADING DESPITE THE POSITIVE TREASURY AUCTION ANALYSTS SAID TRADERS REMAIN TENTATIVE AHEAD OF TODAY'S 10YEARNOTE AUCTION AND TOMORROW'S 30YEARBOND OFFERING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 021 TO 10558 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2185 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1053 ISSUES ROSE AND 856 FELL BOND PRICES WERE STEADY THE TREASURY'S BENCHMARK 30YEAR ISSUE WAS UNCHANGED TO YIELD 681 BUT SHORTERMATURITY TREASURY ISSUES ROSE SLIGHTLY THE DOLLAR SLIPPED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16065 MARKS AND 11139 YEN COMPARED WITH 16074 MARKS AND 11175 YEN MONDAY 9305120095 930512 LIFE INSURERS AFTER BIG DROP IN RETURNS MAY CUT RATES PAID TO POLICYHOLDERS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL LIFE INSURANCE COMPANIES LAST YEAR SUSTAINED THE BIGGEST DECLINE IN INVESTMENT RETURNS SINCE THE 1930S MAKING IT LIKELY THAT THEIR CUSTOMERS WILL FACE CUTS IN THE INVESTMENT RATES THEY EARN ON THEIR POLICIES THE AVERAGE YIELD ON INSURANCE COMPANY INVESTMENTS FELL TO 817 LAST YEAR FROM 863 IN 1991 A 46 BASIS POINT DROP ACCORDING TO THE AMERICAN COUNCIL OF LIFE INSURANCE THE INFORMATION WAS DISTRIBUTED TO INSURANCE COMPANIES IN FEBRUARY BUT THE TRADE GROUP DIDN'T ANNOUNCE THE RESULTS AT THE TIME INVESTMENT YIELDS HAVE CONTINUED TO FALL THIS YEAR THE DECLINES ARE EXPECTED TO PROMPT INSURERS TO CUT THE DIVIDEND AND CREDITING RATES THEY PAY THEIR POLICYHOLDERS THESE RATES ARE TO LIFE INSURANCE POLICYHOLDERS WHAT INTEREST RATES ARE TO HOLDERS OF CERTIFICATES OF DEPOSITS IN GENERAL POLICYHOLDEROWNED INSURANCE COMPANIES SUCH AS PRUDENTIAL INSURANCE CO OF AMERICA AND METROPOLITAN LIFE INSURANCE CO PAY DIVIDENDS TO THEIR POLICYHOLDERS WHICH CAN BE THOUGHT OF AS A POLICYHOLDER'S SHARE OF THE COMPANY'S PROFIT ALTHOUGH POLICYHOLDERS EARN A GUARANTEED INTEREST RATE ON THE CASH VALUE OF THEIR POLICIES THE DIVIDEND REPRESENTS A SIGNIFICANT COMPONENT OF THE POLICYHOLDER'S RETURN SAID JIM HUNT OF THE NATIONAL INSURANCE CONSUMER ORGANIZATION COMPANIES CAN CHANGE DIVIDEND RATES AT THEIR DISCRETION POLICIES ISSUED BY MUTUALLY OWNED COMPANIES REPRESENT THE LION'S SHARE OF THE LIFE INSURANCE MARKET INVESTORS WHO BUY FROM STOCKHOLDEROWNED COMPANIES GENERALLY EARN INTEREST KNOWN AS A CREDITING RATE ON THEIR CASH VALUE CREDITING RATES ALSO CAN BE CHANGED AT A COMPANY'S OPTION IN RESPONSE TO FALLING YIELDS ON THEIR INVESTMENT PORTFOLIOS INSURERS IN RECENT YEARS HAVE BEEN CUTTING THEIR DIVIDEND AND CREDITING RATES BUT THE RATES HAVEN'T FALLEN ENOUGH TO FULLY ACCOUNT FOR THE DROP COMPANIES HAVE EXPERIENCED IN THEIR INVESTMENT PORTFOLIOS THE LATEST DECLINES COULD FORCE INSURERS TO MAKE ADDITIONAL AND POTENTIALLY SIGNIFICANT CUTS IN WHAT THEY PAY POLICYHOLDERS RATES ARE STILL QUITE HIGH GIVEN THE CURRENT INTEREST RATE ENVIRONMENT SAID CHESTER MURRAY OF MOODY'S INVESTOR SERVICE INC YOU COULD GET SOME MEANINGFUL REDUCTIONS SPOKESMEN FOR PRUDENTIAL MET LIFE AND OTHER INSURERS SAY THEY WON'T KNOW UNTIL LATER THIS YEAR WHETHER THEY PLAN TO CUT THEIR DIVIDEND RATES CREDITING RATES ADJUST MONTHLY THEY HAVE ALREADY FALLEN SHARPLY THIS YEAR BUT ARE EXPECTED TO FALL EVEN FURTHER EVERY RATE THAT ISN'T GUARANTEED HAS TO COME DOWN SAID GLENN DAILY A FEEONLY FINANCIAL PLANNER IN NEW YORK CITY IT'S JUST COMMON SENSE PROFIT MAY BE HURT INSURERS MAKE MONEY ON THE SPREAD BETWEEN WHAT THEY EARN ON PREMIUMS AND INVESTMENTS AND WHAT THEY PAY POLICYHOLDERS UNLESS INSURERS CUT POLICYHOLDER RATES THEIR PROFITS WILL BE HURT ANALYSTS SAY OPERATING EARNINGS ARE GOING TO TAKE A TUMBLE IN 1993 UNLESS COMPANIES CUT THEIR RATES SAID FRED TOWNSEND AN INSURANCE CONSULTANT WITH TOWNSEND & SCHUPP IN HARTFORD THE FALL IN INVESTMENT RETURNS REFLECTS TRENDS IN THE BOND AND MORTGAGE MARKETS AS BONDS AND MORTGAGES COME DUE INSURERS ARE BEING FORCED TO INVEST PROCEEDS IN LOWER YIELDING INVESTMENTS THE TREND HAS BEEN ACCELERATED BY PREPAYMENTS TO TAKE ADVANTAGE OF LOWER RATES CORPORATE TREASURERS HAVE BEEN CALLING IN THEIR BONDS AND CONSUMERS HAVE BEEN REFINANCING HOME MORTGAGES INSURERS ALSO HAVE BEEN HURT BY DEFAULTS ON COMMERCIAL MORTGAGES IN ADDITION THE FAILURE OF MUTUAL BENEFIT LIFE INSURANCE CO AND OTHER INSURERS HAS MADE INSURERS EAGER TO REDUCE THEIR RISKS SO THEY HAVE BEEN INVESTING IN SAFER BUT LOWER YIELDING SECURITIES INSURERS REDUCED THEIR MORTGAGE HOLDINGS BY 71 LAST YEAR ACCORDING TO THE LIFE INSURANCE GROUP THE PROCEEDS HAVE BEEN PUT INTO BONDS AND MORTGAGEBACKED SECURITIES WHICH PAY BETTER RATES THAN BONDS ACCORDING TO SALOMON BROTHERS INC VICE PRESIDENT PETER NORIS INSURERS NOW HAVE MORE THAN 220 BILLION INVESTED IN MORTGAGEBACKED SECURITIES OR 196 OF THEIR INVESTMENTS THAT IS UP FROM ONLY 8 IN 1988 HE SAID FALLING INVESTMENT YIELDS HAVE ENCOURAGED SOME INSURERS TO TRY NEW TYPES OF INVESTMENTS AETNA LIFE & CASUALTY CO FOR INSTANCE HAS FOUND IT CAN EARN AN EXTRA 100 HUNDRED BASIS POINTS WITHOUT TAKING SIGNIFICANT RISK BY BUYING MORTGAGEBACKED SECURITIES THAT LACK THE BACKING OF THE FEDERAL GOVERNMENT SAID AETNA VICE PRESIDENT RONALD THELIN THE COMPANY ALSO HAS BEEN BUYING SOCALLED BRADY BONDS WHICH ARE BONDS ISSUED BY MEXICO AND OTHER LATIN AMERICAN COUNTRIES WITH PRINCIPAL GUARANTEED BY THE US GOVERNMENT SUCH NONTRADITIONAL INVESTMENTS REPRESENT ONLY A FEW HUNDRED MILLION DOLLARS OF AETNA'S 58 BILLION INVESTMENT PORTFOLIO MR THELIN SAID 9305120094 930512 PILKINGTON IS MUM ON DETAILS OF SUSPENSIONS MOVE AGAINST TOP OFFICERS OF LIBBEYOWENSFORD SURPRISES GLASS INDUSTRY BY JANET GUYON AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON PILKINGTON PLC WOULDN'T ELABORATE ON ITS SURPRISE MOVE TO SUSPEND THREE TOP EXECUTIVES OF ITS LIBBEYOWENSFORD CO UNIT PENDING AN INTERNAL INVESTIGATION PILKINGTON SAID THE CHAIRMAN OF LIBBEYOWENSFORD WHICH IS BASED IN TOLEDO OHIO WILL ASSUME THE ADDITIONAL POSTS OF CHIEF EXECUTIVE AND PRESIDENT THE UK GLASS MAKER SAID THE THREE OFFICERS WERE SUSPENDED WITH PAY MONDAY PENDING THE RESULTS OF A MANAGEMENT REVIEW TREVOR O JONES THE UNIT'S CHAIRMAN WILL ASSUME HIS NEW RESPONSIBILITIES IMMEDIATELY PILKINGTON SAID THE THREE SUSPENDED EXECUTIVES ARE RONALD SKEDDLE PRESIDENT AND CHIEF EXECUTIVE OFFICER EDWARD BRYANT EXECUTIVE VICE PRESIDENT OF OPERATIONS AND DARRYL COSTIN EXECUTIVE VICE PRESIDENT OF TECHNOLOGY NONE COULD BE REACHED FOR COMMENT TOLEDO TELEVISION STATIONS REPORTED THAT THE THREE MEN WERE ESCORTED FROM LIBBEYOWENSFORD HEADQUARTERS BUT THAT HASN'T BEEN CONFIRMED BY THE COMPANY THE THREE ALL AMERICANS WERE WELLESTABLISHED EXECUTIVES AT THE UNIT AND THEIR SUSPENSION CAME AS A SURPRISE TO OTHERS IN THE GLASS INDUSTRY PILKINGTON SAID THAT THERE WASN'T ANY EVIDENCE OF MAJOR FINANCIAL LOSS AND THAT THE COMPANY IS PERFORMING AN INTERNAL INVESTIGATION INTO A FAILURE TO FOLLOW CORPORATE PROCEDURES PILKINGTON WOULDN'T COMMENT FURTHER AND A LIBBEYOWENSFORD SPOKESMAN DIDN'T RETURN REPEATED TELEPHONE CALLS PILKINGTON HAS BEEN DISSATISFIED WITH LIBBEYOWENSFORD'S FINANCIAL PERFORMANCE FOR SOME TIME ACCORDING TO PEOPLE IN THE GLASS INDUSTRY THE SUBSIDIARY'S BIGGEST CUSTOMER IS GENERAL MOTORS CORP THUS LIBBEYOWENSFORD HAS BEEN HURT BOTH BY GM'S SLUMPING SALES AND GM'S CAMPAIGN TO SLASH SUPPLIER PRICES ACCORDING TO AN EXECUTIVE AT A COMPETING COMPANY THE EXECUTIVE HOWEVER DIDN'T KNOW WHY THE THREE LIBBEYOWENSFORD EXECUTIVES WERE SUSPENDED PILKINGTON WHOSE CHAIRMAN IS SIR ANTONY PILKINGTON IS THE DEVELOPER OF THE FLOAT GLASS PROCESS FOR MAKING FLAT GLASS THE PROCESS CONSIDERED AN INNOVATION WHEN IT WAS DEVELOPED SOME YEARS AGO IS LICENSED TO OTHER GLASS MAKERS AROUND THE WORLD LIBBEYOWENSFORD MAKES FLAT GLASS FOR THE CONSTRUCTION AND AUTOMOTIVE INDUSTRIES PILKINGTON LAST JULY NAMED A NEW CHIEF EXECUTIVE ROGER LEVERTON WHO ASSUMED DAYTODAY RESPONSIBILITIES FOR THE BUSINESS UNDER SIR ANTONY MR LEVERTON'S ASSUMPTION OF THE CHIEF EXECUTIVE TITLE WAS VIEWED AT THE TIME AS AN ACKNOWLEDGEMENT BY SIR ANTONY THAT HE WOULD SHARE MORE POWER OVER THE BUSINESS PILKINGTON BOUGHT THE GLASSMAKING OPERATIONS OF LIBBEYOWENSFORD IN 1986 IN A DEAL WITH AN INDICATED VALUE OF 3677 MILLION THE MOVE MADE PILKINGTON THE LARGEST AUTOMOTIVE GLASS SUPPLIER IN THE US AT THE TIME LIBBEYOWENSFORD'S NONGLASS OPERATIONS WERE MADE INTO A SEPARATE COMPANY TRINOVA CORP OF MAUMEE OHIO 9305120092 930512 LETTERS TO THE EDITOR POGROMS AND ELECTION FRAUD IN ANGOLA YOUR APRIL 14 EDITORIAL ANGOLA ENDGAMES MAKES A NUMBER OF SALIENT POINTS THAT OTHER ILLCONSIDERED RECENT EDITORIALS IN PROMINENT US NEWSPAPERS CHOSE TO IGNORE IT CORRECTLY GIVES UNITA PRESIDENT JONAS MALHEIRO SAVIMBI CREDIT FOR HIS LEADERSHIP ROLE IN HASTENING THE END OF THE SOVIET COLOSSUS IN ADDITION IT SHOULD BE NOTED THAT THIS STATESMAN AND MILITARY LEADER PLAYED A PIVOTAL ROLE IN THE MOVEMENT TO SWEEP SINGLEPARTY AUTHORITARIAN REGIMES FROM THE AFRICAN POLITICAL SCENE THIS MOVEMENT FOR MULTIPARTY DEMOCRACY WHICH IS DAILY GAINING STRENGTH HAD FEW ADVOCATES IN THE US BEFORE UNITA TOOK TO THE BUSH IN 1976 AND PLEDGED TO DRIVE THE SOVIETS AND CUBANS WHO AT ONE TIME NUMBERED MORE THAN 60000 FROM ANGOLA YOUR AGNOSTICISM CONCERNING WHETHER THE SEPTEMBER 2930 MULTIPARTY ELECTIONS WERE FREE AND FAIR IS ALSO A BREATH OF FRESH AIR US EDITORIAL PAGE WRITERS IN THE MAIN HAVE REPEATED THE MINDNUMBING MANTRA THE ELECTIONS WERE FREE AND FAIR BECAUSE THE UNITED NATIONS CERTIFIED THEM HOWEVER IT SHOULD BE POINTED OUT THAT 10 OF THE 14 OPPOSITION PARTIES DISAGREED AND STATED THAT THE ELECTIONS WERE CHARACTERIZED BY MASSIVE FRAUD AND IRREGULARITIES JILL JOLLIFE A WELLKNOWN AUSTRALIAN JOURNALIST AGREED WITH THE OPPOSITION PARTIES AFTER DOING AN EXHAUSTIVE INVESTIGATION BUT PERHAPS MOST IMPORTANTLY SO DID THE UN'S OWN INVESTIGATORS IT'S SUMMARY OF FINDINGS OF THE PROVINCIAL INVESTIGATIVE COMMITTEES ON THE CONDUCT OF THE ELECTORAL PROCESS DATED OCT 16 1992 REPORTED IT MAY BE GENERALLY CONCLUDED THAT THERE WERE IRREGULARITIES DISCOVERED IN THE ELECTORAL PROCESS IN SOME CASES THE VOLUME OF VOTES LOST OR GAINED BY EACH CANDIDATE COULD TAKEN NATIONALLY BE SIGNIFICANT SIC AS TO DISTORT THE FINAL RESULTS YOUR EDITORIAL CORRECTLY POINTS OUT THAT THE MPLA TIGHTENED ITS GRIP ON THE CAPITAL BY MASSACRING UNITA SUPPORTERS IN FACT THE POGROM WAS NATIONWIDE AND TARGETED PEOPLE ON THE BASIS OF THEIR ETHNICITY BAKONGOS AND OVIMBUNDOS MAKING UP MORE THAN HALF OF THE POPULATION AND THEIR POLITICAL AFFILIATION MORE THAN 30000 CIVILIANS WERE SLAUGHTERED BY MPLA GOVERNMENT DEATH SQUADS IN CITIES INCLUDING IN ADDITION TO THE CAPITAL LUBANGO LOBITO BENGUELA NAMIBE DUNDO AND SUMBE IT IS NECESSARY AT A MINIMUM TO STOP THE FIGHTING AND PROVIDE HUMANITARIAN RELIEF TO HUNGERRAVAGED POPULATIONS AND EXPEDITE MEDICAL ASSISTANCE THE MPLA GOVERNMENT MUST ALSO UNDERSTAND THAT IT CANNOT IMPOSE ITS WILL BY MILITARY MEANS AND MUST GIVE UP THE UNREALIZABLE DREAM OF DESTROYING UNITA ALTHOUGH THE ELECTIONS CLEARLY WERE NOT FREE THE COUNTRY MUST STILL MOVE FORWARD DEVOLUTION OF POWER TO THE REGIONS AND THE PROVINCES WILL DEMOCRATIZE THE COUNTRY IN ADDITION UNITA MUST BE INVOLVED IN GOVERNMENT AT ALL LEVELS SO THAT PEOPLE BEGIN TO FEEL SECURE THIS WILL ALLOW NATIONAL RECONCILIATION AND UNITY UNRAVELED BY THE GOVERNMENT POGROMS TO DEVELOP THE ECONOMY USING THE COUNTRY'S ABUNDANT RESOURCES CAN THEN BE REBUILT ON THE BASIS OF FREE MARKET PRINCIPLES 9305120091 930512 WHO'S NEWS SEAGULL ENERGY CORP SEAGULL ENERGY CORP HOUSTON JOHN W ELIAS EXECUTIVE VICE PRESIDENT WAS ELECTED TO THE BOARD OF THIS NATURAL GAS COMPANY MR ELIAS 52 YEARS OLD INCREASES BOARD MEMBERSHIP TO 12 9305120090 930512 REED ELSEVIER SET TO PAY 425 MILLION FOR ROBERT MAXWELL'S US AIRLINE GUIDE BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON REED ELSEVIER PLC BECAME THE FIRST BIDDER TO REACH AGREEMENT ON BUYING A PIECE OF THE LATE ROBERT MAXWELL'S US COMMUNICATIONS EMPIRE BY BIDDING 425 MILLION FOR MAXWELL'S AIRLINEGUIDE PROPERTY REED JOINTLY OWNED BY REED INTERNATIONAL PLC IN THE UK AND ELSEVIER NV IN THE NETHERLANDS SAID IT SIGNED A NONBINDING NONEXCLUSIVE LETTER OF INTENT TO BUY THE OFFICIAL AIRLINES GUIDES FROM ADMINISTRATORS OF MAXWELL COMMUNICATION CORP LED BY PRICE WATERHOUSE OTHER POSSIBLE BUYERS ARE EVALUATING SUCH MAXWELL PROPERTIES AS MACMILLAN PUBLISHING AND STANDARD RATE & DATA SERVICE THEY HAVE GIVEN AN IDEA OF WHAT THEY WOULD PAY BUT HAVEN'T REACHED THE STAGE OF SIGNING AN AGREEMENT SAID ALAN JAMIESON A JOINT ADMINISTRATOR AND SENIOR PARTNER AT PRICE WATERHOUSE REED COULD FIND ITSELF IN A BIDDING WAR SHOULD A BETTER OFFER BE MADE FOR EITHER OAG ALONE OR FOR ALL THE US PROPERTIES HE SAID REED SAID IT WILL FILE NOTICE IMMEDIATELY WITH THE FEDERAL TRADE COMMISSION AND THE JUSTICE DEPARTMENT UNDER THE HARTSCOTTRODINO ANTITRUST IMPROVEMENTS ACT ANALYSTS IN LONDON HAD ONLY SKETCHY INFORMATION ABOUT THE PROPOSED PURCHASE AND SAID THEY COULDN'T FULLY EVALUATE IT BUT GIVEN THAT MR MAXWELL PAID 750 MILLION FOR OAG IN 1988 IT IS PROBABLY A GOOD PRICE FROM REED'S POINT OF VIEW THEY SAID OAG'S OPERATING PROFIT IS THOUGHT TO HAVE DECLINED SINCE THE MAXWELL PURCHASE TO SOME 40 MILLION FROM ABOUT 70 MILLION MR JAMIESON SAID OAG HAD 1992 OPERATING PROFIT OF 45 MILLION BUT THAT FIGURE INCLUDED EARNINGS FROM STANDARD RATE & DATA FOR PART OF THE YEAR REED'S BID IS IN THE RANGE THAT JP MORGAN THE INVESTMENT BANK HIRED BY PRICE WATERHOUSE SAYS ADMINISTRATORS SHOULD ACCEPT HE SAID A REED SPOKESWOMAN ACKNOWLEDGED THE AGREEMENT'S NONEXCLUSIVITY IS UNUSUAL BUT SAID REED NEEDED THE LETTER OF INTENT REED SHE SAID MUST KNOW WHETHER US LAW PERMITS THE PURCHASE OAG WOULD GIVE REED A LOCK ON TWO OF THE WORLD'S BESTKNOWN AIRLINE GUIDES THE COMPANY OWNS ABC WORLD AIRWAYS GUIDE WHICH PUBLISHES SCHEDULES OUTSIDE THE US THE OAG GUIDE WIDELY USED BY US TRAVEL AGENTS IS THE MAIN US SOURCE OF INFORMATION ABOUT AIRLINE SCHEDULES REED LOST ITS BID FOR THE GUIDE TO MR MAXWELL IN 1988 LAST FALL EXECUTIVES REITERATED THEIR INTEREST WHEN AN INVESTOR GROUP LED BY TEXAS BILLIONAIRE ROBERT M BASS PUT FORTH AN UNSOLICITED 12 BILLION BID FOR THE MAXWELL GROUP'S US PUBLISHING BUSINESSES INCLUDING MACMILLAN INC INTEREST IN ACQUIRING MACMILLAN REMAINS HIGH AMONG SUCH COMPANIES AS PARAMOUNT COMMUNICATIONS INC HARCOURT GENERAL INC WALT DISNEY CO AND KIII COMMUNICATIONS CORP AS WELL AS AN INVESTMENT GROUP LED BY MR BASS FINAL BIDS ARE EXPECTED BY LATE JUNE CRAIG FORMAN CONTRIBUTED TO THIS ARTICLE 9305120089 930512 TREASURY PLANS SALE MONDAY OF 24 BILLION IN SHORTTERM BILLS WASHINGTON THE TREASURY PLANS TO RAISE 175 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 24 BILLION IN SHORTTERM BILLS TO REDEEM 2381 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON AUG 19 AND NOV 18 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794F41 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794E59 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT 9305120088 930512 LEISURE & ARTS BOOKSHELF PORTRAIT OF A NEWLY INDEPENDENT INDIA BY AMAL NAJ IN VIKRAM SETH'S NEW NOVEL A SUITABLE BOY HARPERCOLLINS 1349 PAGES 30 A COCKY POET IS ABOUT TO PUBLISH A NOVEL THAT HE UNABASHEDLY COMPARES WITH THE WORKS OF GEORGE ELIOT SHAKESPEARE AND TOLSTOY MR SETH HINTS AMPLY THAT THIS POET IS NONE OTHER THAN MR SETH HIMSELF A POET WHO HAS JUST PUBLISHED AN OPUS IN REAL LIFE MR SETH MAY NOT BE GIVEN TO SUCH SWAGGERING POMPOSITY BUT IN BRITAIN WHERE HIS NOVEL HAS CREATED A LITERARY SENSATION CRITICS HAVE SHOWERED THE 41YEAROLD AUTHOR WITH ENOUGH PRAISE TO KEEP HIM HUMMING ALONG FOR A LONG TIME TO COME AS IF TAKING A CUE FROM THE NOVEL'S HAUGHTY POET CRITICS HAVE INVOKED MIDDLEMARCH AND WAR AND PEACE PERHAPS IT'S THAT THE ENGLISH ARE CURIOUS OUT OF NOSTALGIA ABOUT HOW INDIA THE MOST PRIZED OF THEIR FORMER COLONIES IS DOING WITHOUT THEM AND CURIOSITY HAS HARDLY KILLED THIS CAT A SUITABLE BOY REPORTEDLY FETCHED A TOTAL OF NEARLY 1 MILLION FROM BRITISH AND AMERICAN PUBLISHERS SET IN NEWLY INDEPENDENT INDIA IN THE EARLY 1950S A SUITABLE BOY BRINGS TOGETHER FOUR UPPERCLASS EXTENDED FAMILIES AND WEAVES THEIR DAILY LIVES LOVES MARRIAGES SCANDALS DEATHS MANNERS AND MANNERISMS INTO THE POLITICAL EVENTS OF THE DAY LAND REFORM ELECTIONS RELIGIOUS RIOTS AT THE CENTER OF THIS WORLD IS THE MEHRA FAMILY HEADED BY ITS MATRIARCH RUPA MEHRA IN AN IMAGINARY CITY CALLED BRAHMPUR SHE HAS JUST MARRIED OFF ONE DAUGHTER AND AT THE WEDDING SHE'S ALREADY PREOCCUPIED WITH FINDING A SUITABLE MATCH FOR ANOTHER 19YEAROLD LATA BUT THE HINDU GIRL FALLS IN LOVE WITH A MUSLIM BOY KABIR THAT WOULD BE A RACIAL AND RELIGIOUS TRANSGRESSION EVEN IN THE INDIA OF TODAY BUT AGAINST THE BACKDROP OF BLOODY RIOTS BETWEEN THE MAJORITY HINDUS AND THE MINORITY MUSLIMS AFTER INDIA'S PARTITION FROM PAKISTAN IN 1947 THE LIAISON THREATENS TO BRING TOTAL DISHONOR TO THE MEHRA CLAN LATA HOWEVER ALSO ENTERTAINS THE ADVANCES OF THE POET AMIT EVENTUALLY SHE REJECTS BOTH AND MARRIES THE MAN OF HER MOTHER'S CHOICE AN AMBITIOUS CORPORATE TYPE WHO IS CLAWING HIS WAY UP THE SHOEMANUFACTURING TREE THIS SUITABLE BOY IS NEITHER AS HANDSOME AND ROMANTIC AS KABIR NOR AS DANDY AND HIGHBROW AS AMIT LATA'S ENCOUNTERS WITH THESE SUITORS AND HER RUMINATIONS ON LOVE AND PASSION FILL ONLY ABOUT 100 PAGES OF THE TOME THAT LEAVES MANY MORE PAGES FOR MR SETH TO POPULATE WITH DOZENS OF OTHER CHARACTERS THERE IS THE CLAN OF CHIEF JUSTICE CHATTERJI THE QUINTESSENTIAL BENGALIS OF CALCUTTA WHO REPRESENT A GROUP OF INDIA'S CULTURAL SNOBS STILL CLINGING TO THE VESTIGES OF BRITISH RULE MEANWHILE MAHESH KAPOOR AN HONORBOUND POLITICIAN STEEPED IN THE IDEALS OF THE RULING CONGRESS PARTY AND ITS CHARISMATIC LEADER NEHRU FINDS HIMSELF PULLED DOWN BY FAMILY PROBLEMS WHILE HE FIGHTS FOR LAND REFORM HIS SON MAAN A DRINKING AND GAMBLING LOUT FALLS FOR A MUSLIM COURTESAN IN HER WANING DAYS AND EVENTUALLY BECOMES HIS FATHER'S POLITICAL NEMESIS MR SETH PAINTS THESE MODERN INDIAN MINIATURES WITH A KEEN EYE INSERTING THEM INTO HIS PANORAMA SO UNOBTRUSIVELY AND SKILLFULLY THAT EVEN EXTRAORDINARY EVENTS SUCH AS THE ELABORATE WEDDING THAT OPENS THE NOVEL OR THE COMMUNAL RIOTS FLAMED BY RELIGIOUS MISTRUST MIX EASILY WITH THE RICH FLOW OF ORDINARY LIFE ALAS HE DOESN'T EMPLOY A POET'S ECONOMY IT TAKES HUNDREDS OF PAGES AND MINDNUMBING DETAILS ON EVERYTHING FROM SHOE MANUFACTURING TO THE INNER WORKINGS OF THE STATE LEGISLATURE BEFORE THE PIECES FALL INTO PLACE AND FORM A CLEAR IMAGE FEW OF THE CHARACTERS DEVELOP INTO MEMORABLE FIGURES AS A RESULT THE SCENES OF A NOVEL THAT OWES A STRONG DEBT TO ELIOT'S MIDDLEMARCH NEVER COHERE INTO THE BEAUTIFULLY FUSED HUMAN SOCIAL AND INTELLECTUAL COMPLEXITY OF THAT 19THCENTURY NOVEL ABOUT PROVINCIAL LIFE THE READER LEARNS LITTLE OF LATA A STUDIOUS UNDERGRADUATE WHO LINGERS IN A BOOKSTORE WHERE SHE MEETS THE MUSLIM SUITOR ATTENDS THE MEETINGS OF THE BRAHMPUR LITERARY SOCIETY AND LISTENS TO AMIT'S POETIC OUTPOURINGS A WOMAN PALPITATING FOR THE FORBIDDEN KABIR SHOULD HAVE A LOT TO SAY ABOUT THE HINDUMUSLIM CHASM THAT IS AS MUCH A SOURCE OF HER ANGUISH AND DESPAIR AS IT IS INDIA'S AT THE END A SUITABLE BOY JUST STRAINS PATIENCE AND WRISTS BUT ONE SENSES IN THIS CLUTTERED AND WINDY OPUS A SHIMMERING GEM STRUGGLING TO REVEAL ITSELF UNFORTUNATELY MR SETH MISTAKENLY PURSUES SIZE AND DENSITY TO ACHIEVE ELOQUENCE AND APPEAL OTHER WRITERS SUCH AS KHUSHWANT SINGH TRAIN TO PAKISTAN AND SALMAN RUSHDIE MIDNIGHT'S CHILDREN HAVE DEALT WITH THE DAWN OF INDIA WITH EXTRAORDINARY BRILLIANCE AND EMOTION MR SETH'S PREVIOUS VERSE NOVEL THE GOLDEN GATE WAS AN OPERATIC STORY ABOUT SAN FRANCISCO YUPPIES TOLD IN A LUMINOUS VOICE IN THIS BOOK WRITTEN IN CONVENTIONAL ENGLISH HIS PROSE DOESN'T ATTAIN THE SAME LUSTER AND DEPTH AS A RESULT MR SETH'S OVERLY AMBITIOUS PORTRAYAL OF INDIA IN TRANSITION PRODUCES AN IMAGE THAT IS AT BEST GRAINY MR NAJ A REPORTER IN THE JOURNAL'S NEW YORK BUREAU IS THE AUTHOR OF PEPPERS KNOPF 9305120087 930512 WHO'S NEWS BOEING CO BOEING CO SEATTLE CG JERRY KING FORMERLY EXECUTIVE VICE PRESIDENT OF BOEING'S DEFENSE AND SPACE UNIT SINCE APRIL 1991 WAS NAMED PRESIDENT OF THE UNIT MR KING 58 YEARS OLD SUCCEEDS B DAN PINICK AS HEAD OF THE DEFENSE AND SPACE OPERATIONS BASED IN NEARBY KENT MR PINICK 65 WILL CONTINUE AS A CORPORATE EXECUTIVE VICE PRESIDENT UNTIL HIS RETIREMENT AUG 1 IN HIS NEW JOB MR KING WILL REPORT TO BOEING PRESIDENT PHIL CONDIT AND WILL SERVE AS A MEMBER OF THE CORPORATE EXECUTIVE COUNCIL A SPOKESMAN SAID MR KING HASN'T YET BEEN NAMED TO A CORPORATE POST 9305120086 930512 HEALTH INSURERS MAY BE FACING INTERIM CONTROLS CLINTON IS LIKELY TO IMPOSE LIMITS TO STEM ABUSES BEFORE NEW PLAN BEGINS BY RICK WARTZMAN AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION FEARFUL THAT SOME INSURANCE COMPANIES MAY TRY TO PROFITEER OR DUMP PEOPLE FROM THEIR ROLLS BEFORE A NEW HEALTH SYSTEM IS UP AND RUNNING IS LIKELY TO IMPOSE SOME SHORTTERM CONTROLS ON THE FIRMS THE CONTROLS WOULD BUILD ON A REGULATORY FRAMEWORK THAT MANY STATES HAVE ALREADY SET UP TO ENSURE THAT CERTAIN PEOPLE AREN'T DROPPED FROM THEIR HEALTH POLICIES THE GOAL IS TO KEEP PEOPLE'S COVERAGE IN PLACE UNTIL THEY CAN GET INTO THE NEW SYSTEM ONE ADMINISTRATION OFFICIAL EXPLAINED HE SAID IT WASN'T CLEAR AT THIS POINT WHETHER THE CONTROLS WOULD NEED CONGRESSIONAL APPROVAL OR COULD BE PUT IN PLACE THROUGH AN EXECUTIVE ORDER WITHOUT THE CONTROLS HEALTH ADVISERS TO PRESIDENT CLINTON SAID THEY HAVE TWO PRIMARY CONCERNS THE FIRST IS THAT INSURERS MAY TRY TO JACK UP THEIR PREMIUMS AND SQUEEZE AS MUCH MONEY AS POSSIBLE OUT OF THE CURRENT SYSTEM BEFORE THE CLINTON HEALTHCARE PLAN COULD GO INTO EFFECT TO PREVENT THIS CLINTON OFFICIALS SAID THEY PLAN TO SIT DOWN WITH INSURANCE INDUSTRY REPRESENTATIVES AND ATTEMPT TO HAMMER OUT A CODE OF CONDUCT FOR THE TRANSITION PERIOD EVEN IF THE INDUSTRY IS COOPERATIVE AS IS EXPECTED ADMINISTRATION OFFICIALS SAID THEY ARE LIKELY TO PUT RULES ON THE BOOKS TO DEAL WITH RECALCITRANT COMPANIES FOR INSTANCE THE WHITE HOUSE IS CONSIDERING PLACING SPECIFIC LIMITS ON HOW MUCH PREMIUMS CAN BE INCREASED BEFORE THE NEW HEALTH SYSTEM IS OPERATIVE SOME 40 STATES ALREADY HAVE PREMIUM PRICING LIMITS IN PLACE FOR THE SMALLBUSINESS MARKET UNDER ANOTHER OPTION A BIG JUMP IN PREMIUMS WOULD TRIGGER AN AUTOMATIC GOVERNMENT REVIEW LIKELY TO BE CONDUCTED BY STATE REGULATORS THE SECOND FEAR IS THAT INSURERS MAY TRY TO WEED OUT POLICYHOLDERS WHO ARE OLDER OR OTHERWISE MORE LIKELY TO NEED MEDICAL CARE INSURERS MIGHT TAKE THIS ACTION CLINTON OFFICIALS SAID IF THEY ARE CONVINCED THESE HIGHRISK CLIENTS WOULD ELECT TO STAY WITH THEM IN THE REGIONAL HEALTHINSURANCE PURCHASING POOLS THAT ARE PLANNED THE PURCHASING POOLS ARE SUPPOSED TO MAKE ADJUSTMENTS SO THAT INSURERS CARRYING A DISPROPORTIONATELY LARGE NUMBER OF HIGHRISK POLICYHOLDERS WOULD RECEIVE MORE MONEY YESTERDAY SENIOR WHITE HOUSE ADVISER IRA MAGAZINER WENT SO FAR AS TO SAY THAT THE POOLS MAY INITIALLY OVER RISK ADJUST SO THAT IT BECOMES A GOOD FINANCIAL DEAL TO TAKE HIGHERRISK PEOPLE NONETHELESS SOME INSURERS WHO MAY BE NERVOUS THAT THESE ADJUSTMENTS WOULDN'T BE ENOUGH MAY TRY TO PLAY IT SAFE BY DUMPING THEIR HIGHRISK POPULATIONS TO DEAL WITH THIS POSSIBILITY ADMINISTRATION OFFICIALS SAID THEY ARE CONSIDERING MAKING POLICY RENEWAL MANDATORY IN THE SHORT TERM SOME 34 STATES ALREADY HAVE RULES THAT HEALTH INSURANCE MUST BE RENEWED FOR SMALL BUSINESSES THE IDEA WOULD BE TO IMPLEMENT SUCH SAFEGUARDS ACROSS THE SYSTEM AND NATIONWIDE IN THE EVENT THAT FIRMS OPT OUT OF THE HEALTHINSURANCE BUSINESS IN THE FACE OF REFORM THE FEDERAL GOVERNMENT MAY STEP IN AND HELP THEIR CLIENTS FIND COVERAGE OFFICIALS SAID NONETHELESS WE'RE WORRIED ABOUT THE INDIVIDUAL WHO FALLS THROUGH THE CRACKS SAID JIM LONG INSURANCE COMMISSIONER FOR NORTH CAROLINA WHO HAS SPOKEN TO WHITE HOUSE HEALTHCARE ADVISERS ON THIS ISSUE ONE OPTION WOULD BE TO SET UP A SPECIAL POOL TO CATCH PEOPLE WHO FIND THEMSELVES IN SUCH STRAITS CONCEIVABLY THE POOL COULD BE FUNDED THROUGH A COMBINATION OF PREMIUMS AND ASSESSMENTS ON THE REST OF THE MARKET CLINTON OFFICIALS SAID TWENTYSIX STATES ALREADY HAVE SUCH HIGHRISK POOLS WHICH COULD SERVE AS BUILDING BLOCKS FOR A NATIONAL ARRANGEMENT A LOT OF THIS IS ALREADY HAPPENING WITH THE STATES SAID LINDA JENCKES SENIOR VICE PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA WHICH REPRESENTS SOME 270 COMMERCIAL HEALTH INSURERS MEANWHILE ADMINISTRATION OFFICIALS SAID THEY ARE STRONGLY CONSIDERING GIVING STATES THE OPTION OF PLACING MEDICARE BENEFICIARIES IN THE INSURANCE PURCHASING POOLS FOR MONTHS OFFICIALS HAVE SAID THEY DIDN'T INTEND TO MAKE MAJOR CHANGES TO MEDICARE WHICH PROVIDES FEDERALLY FINANCED HEALTH COVERAGE TO MORE THAN 35 MILLION ELDERLY AND DISABLED PEOPLE INSTEAD THEY FOCUSED ON CONTROLLING OVERALL MEDICAL COSTS AND EXTENDING HEALTH COVERAGE TO THE 37 MILLION PEOPLE UNDER 65 YEARS OLD WHO ARE UNINSURED BUT SOME OFFICIALS ARE CONVINCED THAT HEALTHCARE COSTS WON'T BE CURBED UNLESS MEDICARE BENEFICIARIES ARE BROUGHT UNDER THE SAME SYSTEM AS EVERYONE ELSE OTHERWISE THE OFFICIALS ARGUE THE COSTSHIFTING THAT HAS LED DOCTORS AND HOSPITALS TO BOOST RATES FOR PRIVATEPAYING PATIENTS TO MAKE UP FOR MEDICARE'S LOWER REIMBURSEMENTS WOULD CONTINUE TO PREVENT COSTSHIFTING A NUMBER OF GOVERNORS HAVE BEEN URGING THE ADMINISTRATION TO INCLUDE MEDICARE IN THE NEW SYSTEM AT A NATIONAL GOVERNORS ASSOCIATION MEETING IN APRIL 42 STATES VOTED TO ASK THE ADMINISTRATION TO TRY TO INCLUDE MEDICARE WE ARE VERY FEARFUL OF THE FEDERAL GOVERNMENT THAT THEY MAY COST SHIFT TO US THROUGH THE MEDICARE PROGRAM SAID GOV HOWARD DEAN OF VERMONT IF MEDICARE WERE INCORPORATED BENEFICIARIES' CARE STILL WOULD BE FUNDED BY THE FEDERAL GOVERNMENT BUT INDIVIDUALS WOULD SELECT A PRIVATE HEALTH PLAN THROUGH THE REGIONAL HEALTH INSURANCE BUYING NETWORKS THEIR BENEFITS WOULD BE THE SAME AS THOSE RECEIVED BY PEOPLE UNDER 65 A FEDERALLY GUARANTEED PACKAGE THAT IS LIKELY TO BE MORE GENEROUS THAN WHAT MEDICARE CURRENTLY PROVIDES THE NEW YORK TIMES REPORTED YESTERDAY THAT THE WHITE HOUSE WAS LOOKING AT WAYS TO INCORPORATE MEDICARE INTO THE HEALTH SYSTEM GOV DEAN SAID SUCH A MOVE SHOULD HAPPEN RIGHT AWAY BUT MR MAGAZINER TOLD REPRESENTATIVES OF CONSUMER GROUPS THAT MEDICARE WOULD BE PHASED IN ONLY AFTER THE NEW SYSTEM IS FULLY ESTABLISHED WHICH SHOULD TAKE AT LEAST TWO OR THREE YEARS IN ADDITION HE STRESSED STATES WOULD HAVE THE OPTION OF LEAVING MEDICARE AS A SEPARATE PROGRAM GROUPS REPRESENTING THE ELDERLY SAID THEY FAVORED SUCH A GOSLOW APPROACH THE MEDICARE PROGRAM DESPITE ITS PROBLEMS DOES WORK SAID MARTIN CORRY DIRECTOR OF FEDERAL AFFAIRS FOR THE AMERICAN ASSOCIATION OF RETIRED PERSONS THE NEW HEALTH SYSTEM WILL TAKE TIME TO SHOW THAT IT CAN WORK HE ADDED AND WE SHOULD NOT RUSH ANY CONSOLIDATION 9305120085 930512 WHO'S NEWS PHILLIPS PETROLEUM CO PHILLIPS PETROLEUM CO BARTLESVILLE OKLA JAMES J MULVA AND J BRYAN WHITWORTH WERE NAMED SENIOR VICE PRESIDENTS OF THIS OIL COMPANY MR MULVA 46 YEARS OLD WILL RETAIN HIS POSITION AS CHIEF FINANCIAL OFFICER AND WILL CONTINUE TO BE RESPONSIBLE FOR FINANCIAL ACTIVITIES INCLUDING TREASURY INTERNAL AUDITING AND CORPORATE TAX MR WHITWORTH 54 IS CURRENTLY VICE PRESIDENT OF CORPORATE RELATIONS AND SERVICES HE WILL CONTINUE TO BE RESPONSIBLE FOR CORPORATE EXTERNAL AND INTERNAL COMMUNICATIONS AND HUMAN RESOURCES STAFFS 9305120084 930512 SEIZED INSURER'S WOES REFLECT PERILS OF CMOS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL BEHIND THE CLOSED DOORS OF A STATE COURTROOM IN ATLANTA THE FATE OF A TINY INSURER HANGS IN THE BALANCE COASTAL STATES LIFE INSURANCE CO WAS SEIZED IN DECEMBER BECAUSE GEORGIA STATE REGULATORS WERE ALARMED THAT ITS LIABILITIES HAD BALLOONED WITH LITTLE CAPITAL TO SUPPORT THEM AT THE SAME TIME COASTAL STATES WAS BETTING ON A PERILOUS INVESTMENT STRATEGY OF ITS 128 MILLION IN ASSETS IT HAD INVESTED SOME 120 MILLION IN EXOTIC HIGHLY VOLATILE TYPES OF MORTGAGEBACKED SECURITIES COASTAL IS SUING TO BLOCK THE STATE'S SEIZURE WHATEVER THE DESTINY OF COASTAL STATES THE COMPANY'S PREDICAMENT SHEDS SOME LIGHT ON THE LIFEINSURANCE INDUSTRY'S GROWING APPETITE FOR COMPLEX AND RISKY MORTGAGEBACKED SECURITIES DURING THE PAST FOUR YEARS LIFE INSURERS WERE ABLE TO INDULGE THEIR CRAVING FOR THE HIGHERYIELDING BONDS BECAUSE INSURANCE REGULATIONS AND ACCOUNTING STANDARDS LAGGED FAR BEHIND THESE SOPHISTICATED SECURITIES INSURERS' HOLDINGS OF MORTGAGE SECURITIES WHICH ARE CREATED FROM POOLS OF HOME MORTGAGES AND BACKED BY GOVERNMENT AGENCIES DOUBLED TO 220 BILLION IN THE PAST FOUR YEARS SECOND ONLY TO THOSE OF BANKS ACCORDING TO INSIDE MORTGAGE SECURITIES A NEWSLETTER ABOUT ONE THIRD IS INVESTED IN THE COMPLEX DERIVATIVE SECURITIES KNOWN AS COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS THESE ARE CREATED BY CARVING UP THE CASH FLOW FROM TRADITIONAL MORTGAGE SECURITIES INTO SLICES OR TRANCHES THE VALUE OF SOME CMOS CHANGES DRASTICALLY WITH SHIFTS IN INTEREST RATES BUT REGULATORS ARE BEGINNING TO UNDERSTAND HOW DIFFICULT CMOS CAN BE TO VALUE AND JUST HOW VAGUE THOSE APPRAISALS CAN BE INDEED COASTAL STATES FLOURISHED FOR TWO YEARS DESPITE REGULATORS' MOUNTING CONCERN BECAUSE THE INSURER COULD ASSERT IT HAD FOLLOWED WHAT FEW RULES EXIST FOR A LONG TIME REGULATORS DIDN'T PAY ATTENTION TO THESE INVESTMENTS SAID LARRY GORSKI WHO HEADS THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS TASK FORCE ON CMOS THEY THOUGHT THERE WAS NO RISK ASSOCIATED WITH THEM BECAUSE OF THE TRIPLEA CREDIT RATING ON GOVERNMENTBACKED MORTGAGE ISSUES HE SAID REGULATORS' CONCERNS SHARPENED LAST YEAR WHEN SOME INSURANCE COMPANIES REPORTED LARGE UNEXPECTED LOSSES IN CMO PORTFOLIOS JUST AS SOME INSURERS LOADED UP ON HIGHYIELDING JUNK BONDS IN THE 1980S AND LATER TOOK BIG LOSSES REGULATORS NOW WORRY THAT CMOS MAY PRESENT A SIMILAR DANGER FOR THE 1990S BY THE END OF THIS YEAR THE NAIC WHICH SETS STANDARDS FOR STATE INSURANCE REGULATORS WILL PUT FORTH NEW RULES THAT WILL CHANGE HOW THESE SECURITIES ARE VALUED ON INSURERS' BOOKS FOR REGULATORY PURPOSES AND MAKE IT EASIER TO TRACK HOW ERRATIC THE SECURITIES' CASH FLOWS ARE LIKELY TO BE BUT INSURERS WILL STILL BE ALLOWED TO HOLD LESS THAN 1 OF CAPITAL AGAINST MORTGAGEBACKED SECURITIES INCLUDING CMOS THE GOVERNMENT GUARANTEE OF THE UNDERLYING HOME MORTGAGES MAKE THE SECURITIES AS CREDITWORTHY AS TREASURY DEBT COASTAL STATES IS THE BENCHMARK FOR THE NEW REGULATIONS ABOUT INVESTMENTS IN CERTAIN MORTGAGEBACKED SECURITIES SAID THOMAS SY HO A CONSULTANT TO THE REGULATORS ON THESE COMPLEX INVESTMENTS DURING THE PAST TWO YEARS GEORGIA'S REGULATORS GREW INCREASINGLY WORRIED ABOUT THE FASTGROWING COMPANY'S MANAGEMENT AND ITS AGGRESSIVE INVESTMENT STRATEGY COASTAL'S CHAIRMAN RONALD C GUERNSEY HAD BEEN INVOLVED WITH A NOWDEFUNCT NORTH CAROLINA INSURER WHOSE INSOLVENCY COULD COST THAT STATE'S GUARANTEE FUND AS MUCH AS 60 MILLION MR GUERNSEY WHO WAS PRESIDENT OF THE COMPANY'S MARKETING ARM SAID HE HAD NOTHING TO DO WITH ITS INSOLVENCY REGULATORS FEAR A DEMISE OF COASTAL COULD LEAVE GEORGIA'S STATE GUARANTEE FUND ON THE HOOK FOR 20 MILLION IF THE STATE COURT ALLOWS THE INSURANCE COMMISSIONER TO PROCEED WITH THE SEIZURE THE COMPANY HAS AND IS BEING EXAMINED SAID CHARLES E HUFF DEPUTY RECEIVER OF THE GEORGIA INSURANCE DEPARTMENT THE REGULATORS WON'T COMMENT FURTHER BECAUSE OF A GAG ORDER PLACED ON ALL PARTICIPANTS IN THE CASE A STATE JUDGE DESPITE MEAGER CAPITAL OF 3 MILLION COASTAL STATES SOLD ABOUT 115 MILLION OF SINGLEPREMIUM DEFERRED ANNUITIES UNTIL REGULATORS SAY THEY FORCED IT TO STOP SELLING IN MARCH 1992 TO MATCH THE HIGH INVESTMENT RATES IT PROMISED ITS ANNUITY HOLDERS WHICH STARTED AS HIGH AS 11 COASTAL INVESTED NEARLY ALL OF ITS ASSETS IN TWO TYPES OF MERCURIAL CMOS WHOSE PRICE AND YIELD CHANGE SIGNIFICANTLY AND UNPREDICTABLY WITH FLUCTUATIONS IN INTEREST RATES ONE HUNDRED PERCENT OF ANYTHING IS RISKY SAID CAROL OSTAPCHUK AN EXAMINER IN FLORIDA'S INSURANCE DEPARTMENT BUT WITH THESE INVESTMENTS ON ANY GIVEN DAY YOU COULD BE INSOLVENT MR GUERNSEY WHO BOUGHT COASTAL STATES IN 1990 INSISTS THE COMPANY DID NOTHING WRONG WE HAVE A SITUATION HERE WHERE REGULATORS HAVE OVERSTEPPED THEIR BOUNDS HE SAID MR GUERNSEY SET UP AN INSURANCE AGENCY FICA MARKETING TO SELL COASTAL STATES' SINGLEPREMIUM DEFERRED ANNUITIES AGENTS TALKED UP THE POLICIES' LIBERAL SURRENDER PROVISIONS THE PENALTIES FOR WITHDRAWING MONEY EARLY WITHIN CERTAIN PERIODS ACCORDING TO A PERSON FAMILIAR WITH THE INSURER IN REALITY POLICYHOLDERS WOULD HAVE TO PAY SURRENDER CHARGES OF UP TO 14 MORE THAN THREE TIMES THE INDUSTRY AVERAGE TO GET THEIR MONEY BACK SAY INSURANCE EXPERTS THE SALES PITCH STRESSED SAFETY SALES LITERATURE FEATURED THE COASTAL STATES BUILDING A PROMINENT FEATURE IN THE ATLANTA SKYLINE EVEN THOUGH THE LIFE INSURER HADN'T OWNED IT IN YEARS IN 1990 COASTAL STATES HIRED ATLANTIC PORTFOLIO ANALYTICS & MANAGEMENT AN ORLANDO MONEYMANAGEMENT FIRM WITH EXPERTISE IN THE STILL NEW WORLD OF MORTGAGE DERIVATIVES ATLANTIC PORTFOLIO PUT TOGETHER A PORTFOLIO CONSISTING OF TWO TYPES OF CMOS INTERESTONLY STRIPS WHICH RECEIVE ONLY THE INTEREST BUT NO PRINCIPAL FROM A POOL OF UNDERLYING MORTGAGES AND INVERSE FLOATERS WHICH PAY MORE CASH AS INTEREST RATES FALL COASTAL STATES HEIGHTENED THE LEVERAGE OF THOSE INSTRUMENTS BY BORROWING 55 MILLION IN REVERSE REPURCHASE AGREEMENTS A PRACTICE REGULATORS HALTED IN MARCH 1992 THE MORTGAGE PORTFOLIO WAS SUPPOSED TO DELIVER A HIGH YIELD NO MATTER WHAT DIRECTION INTEREST RATES WENT IT WAS AN ASSETLIABILITY MATCHING STRATEGY EXPLAINED JON KNIGHT CHIEF INVESTMENT OFFICER OF ATLANTIC PORTFOLIO THAT'S NOT QUITE HOW THINGS WORKED OUT CURRENTLY THE PORTFOLIO IS ABOUT 10 MILLION UNDER WATER ACCORDING TO REGULATORS AND EVERYONE INVOLVED IS POINTING FINGERS I LEFT THE PORTFOLIO UP TO THEM SAID MR GUERNSEY THIS IS THE PORTFOLIO THE COMPANY WANTED SAID MR KNIGHT HERE'S WHY THE PORTFOLIO LOST SO MUCH VALUE AS INTEREST RATES FELL DURING 1991 AND 1992 HOMEOWNERS BEGAN REFINANCING AT AN UNPRECEDENTED CLIP AS A RESULT THE SECURITIES IN COASTAL STATES' PORTFOLIO BEGAN PAYING OFF FAR FASTER THAN EXPECTED AS HOMEOWNERS PAID OFF THEIR OLD MORTGAGES ULTIMATELY THE INTERESTONLY STRIPS PAID DOWN SO FAST THAT THEY RETURNED ABOUT 38 MILLION OR BARELY MORE THAN HALF WHAT THE COMPANY PAID FOR THEM THE INVERSE FLOATERS THAT WERE TO HAVE HEDGED AGAINST DECLINING INTEREST RATES FARED LESS WELL THAN EXPECTED TOO PREPAYMENTS WERE SO GREAT AS HIGH AS 10 TIMES THE INDUSTRY STANDARD PREPAYMENT SPEED THAT THE AVERAGE LIFE OF MANY SECURITIES SHORTENED DRAMATICALLY SHEARING RETURNS TO THE PORTFOLIO YET THE COMPANY WAS ABLE TO MASK ITS DETERIORATING FINANCIAL POSITION THANKS TO VAGUE REGULATORY ACCOUNTING STANDARDS THAT ALLOWED THE COMPANY TO KEEP THE SECURITIES ON ITS BOOKS EVEN AS THEY WERE BEING PAID DOWN INSURANCE COMPANIES ARE SUPPOSED TO ESTIMATE THE LIFE OF THEIR CMOS AND PUT THEM ON THE BOOKS AT A CONSTANT YIELD OVER THAT LIFE THE SECURITIES MUST BE WRITTEN DOWN FASTER ONLY IF THEY ARE PERMANENTLY IMPAIRED MR GUERNSEY AND ATLANTIC PORTFOLIO PICKED A PREPAYMENT RATE SO SLOW THAT THEY COULD AMORTIZE THE CMOS OVER 30 YEARS THOUGH MOST WERE BACKED BY MORTGAGES WITH HIGH INTERESTRATE COUPONS MAKING THEM EVEN MORE SUSCEPTIBLE TO BEING REFINANCED THEY ALSO PUT OFF RECOGNIZING IMPAIRMENT BY ASSUMING THAT PREPAYMENTS MIGHT SLOW ENOUGH FOR THE COMPANY TO RECOVER ITS INVESTMENT THAT WAS NOT A GOOD ASSUMPTION BECAUSE THE COMPANY WAS GETTING BACK HUGE CHUNKS OF ITS FUTURE CASH FLOW EACH MONTH IN THE FORM OF PRINCIPAL EXPLAINED ONE CMO ANALYST WHO EXAMINED COASTAL'S PORTFOLIO AS THE PORTFOLIO WAS DECAYING THE GEORGIA REGULATORS PRESSURED COASTAL TO RAISE ADDITIONAL CAPITAL THAT SET OFF A SCRAMBLE FOR NEW FUNDS ON JUNE 5 1992 MR GUERNSEY ANNOUNCED HE HAD CLOSED ON A DEAL TO TRANSFER MUTUALFUND SHARES VALUED AT 6 MILLION INTO COASTAL STATES THE SECURITIES DIDN'T EXIST ACCORDING TO REGULATORS I BELIEVE THAT TO BE AN ATTEMPT TO DEFRAUD THE GEORGIA INSURANCE DEPARTMENT MR HUFF STATED DURING RECENT INSURANCE DEPARTMENT HEARINGS MR GUERNSEY SAID HE RELIED ON THE ASSURANCES OF AN ATTORNEY INVOLVED IN THE DEAL IN DECEMBER MR GUERNSEY BEGAN NEGOTIATIONS TO TRANSFER 20 MILLION OF POLICYHOLDER LIABILITIES TO A REINSURANCE SUBSIDIARY OF TOWERS FINANCIAL CORP A FINANCE COMPANY THAT HAS SINCE BEEN SUED BY THE SECURITIES AND EXCHANGE COMMISSION FOR ALLEGEDLY DEFRAUDING INVESTORS WHEN REGULATORS SEIZED COASTAL STATES ON DEC 23 THE CONTRACTS WERE READY TO GO MR GUERNSEY MAY YET GET HIS COMPANY BACK IF HE CAN CONVINCE A STATE JUDGE THAT HE FOLLOWED APPROPRIATE RULES CERTAINLY HE HASN'T SUFFERED IN THE YEAR OR SO THAT COASTAL STATES WAS IN BUSINESS THE COMPANY PAID OUT SOME 155 MILLION IN COMMISSIONS TO THE MARKETING AFFILIATE OWNED BY MR GUERNSEY ACCORDING TO COMPANY FINANCIAL STATEMENTS THE COMMISSIONS WERE PAID AT A RATE TWOANDAHALF TIMES HIGHER THAN THE NORM FOR SINGLEPREMIUM DEFERRED ANNUITIES ACCORDING TO AN INDUSTRY EXPERT MR GUERNSEY SAID THAT AFTER TAKING INTO ACCOUNT MARKETING FEES I DON'T THINK THE COMMISSIONS WERE HIGH CMOS ARE MADE FROM POOLS OF MORTGAGES WALL STREET USES POWERFUL COMPUTERS AND SOPHISTICATED MATH TO CARVE CASH FLOWS FROM THE MORTGAGES INTO DOZENS OF INTERLOCKING SECURITIES EACH WITH ITS OWN MATURITY AND INTEREST RATE POPULAR TYPES OF CMOS INCLUDE PAYMENTS FROM CERTAIN MORTGAGES AS LONG AS THEY REMAIN OUTSTANDDING AT A DISCOUNT AND CAN GET A HIGH RETURN IF MORTGAGES ARE PREPAID SOONER THAN ANTICIPATED SHORTTERM BENCHMARKK SUCH AS LIBOR THE LONDON INTERBANK OFFERED RATE RATES RISE 9305120083 930512 INTERNATIONAL EXMASTER OF FAILED POLLY PECK EMPIRE IS A HOMETOWN HERO IN NORTH CYPRUS BY HUGH POPE SPECIAL TO THE WALL STREET JOURNAL LAPTA NORTH CYPRUS TO THE BRITISH ASIL NADIR MAY BE A BANKRUPT PIRATICAL FOREIGNER TAKING REFUGE ON AN OUTLAW ISLAND AFTER BRITISH INVESTORS LOST MILLIONS IN HIS COLLAPSED CONGLOMERATE POLLY PECK INTERNATIONAL PLC TRACKING THE FORMER JETSETTING ENTREPRENEUR TO NORTH CYPRUS BRITISH REPORTERS BROKE OFF THEIR HUNT FOR MR NADIR'S FORMER LOVERS TO ATTEND HIS FIRST NEWS CONFERENCE THEY BROUGHT IT TO A PREMATURE END BY SHOUTING INSULTS LIKE CROOK AND CHICKEN THE POLLY PECK SAGA LOOKS VERY DIFFERENT HOWEVER TO MR NADIR'S 150000 COUNTRYMEN IN THE SELFDECLARED TURKISH REPUBLIC OF NORTHERN CYPRUS EVEN MANY WHO BELIEVE MR NADIR'S RAGSTORICHES STORY MIGHT NOT BE THAT OF A SAINT HAVE REVERENCE FOR HIM WE SUPPORT HIM 100 SAID HOUSE PAINTER HASAN GULER SIPPING TEA AND WATCHING REPORTERS MOB MR NADIR'S WHITEWASHED COUNTRY HOUSE THE CAMPAIGN AGAINST HIM IS ALL POLITICAL AND WRONG THE FORMER TURKISH COMMANDO ADDED IF YOU GO AFTER ANY COMPANY IN THE WORLD LIKE THAT YOU WOULD DESTROY IT THEY WENT FOR ASIL BECAUSE THEY THOUGHT HE WAS ATTILA THE HUN ATTILA MAY BE CALLED THE SCOURGE OF GOD IN THE WEST BUT HE IS A HERO OF TURKISH HISTORY PART OF A CULTURAL DIVIDE BETWEEN TURKS AND THE WEST REOPENED BY THE NADIR AFFAIR MR NADIR 52 YEARS OLD HAS BEEN CHARGED IN BRITAIN WITH 13 COUNTS OF THEFT AND FALSE ACCOUNTING AMOUNTING TO SEVERAL MILLION POUNDS IN CONNECTION WITH POLLY PECK WHOSE INTERESTS RANGED FROM FRUIT TO ELECTRONICS HIS TRIAL WAS DUE TO BEGIN IN SEPTEMBER IN LONDON LAST WEEK HE ALLEGEDLY SKIPPED BAIL SET AT 35 MILLION 23 MILLION AND FLEW TO CYPRUS MOST TURKS BELIEVE ASIL NADIR WAS VICTIMIZED BECAUSE HE IS A TURK AND A MUSLIM THAT IS THE UNSPOKEN MESSAGE BEHIND PUBLIC STATEMENTS BY TURKEY AND NORTH CYPRUS THAT THEY WON'T YIELD TO BRITISH DEMANDS THAT THEY EXTRADITE HIM ASIL NADIR IS OUR KNIGHT IN SHINING ARMOR SAID A TURKISH CYPRIOT BUSINESSMAN IN A BAR NEAR THE PORT OF KYRENIA THE PORT HAS SEEN CONQUERORS FROM THE CHRISTIAN CRUSADERS OTTOMAN TURKS THE BRITISH EMPIRE AND THE CURRENT OCCUPIERS OF NORTH CYPRUS TURKISH TROOPS THE TURKS INVADED IN 1974 AFTER A GREEKCYPRIOT COUP THREATENED TO UNITE CYPRUS WITH GREECE BRAVO ASIL NADIR TURKEY'S BIG DAILY HURRIYET SAID IN A FRONTPAGE COMMENTARY ON MR NADIR'S FLIGHT FROM LONDON THE TURKISH SABAH NEWSPAPER CAPTIONED ITS STORY THE GREAT ESCAPE MR NADIR A BRITISH TURKISH AND TURKISH CYPRIOT CITIZEN WIELDS ONLY A SHADOW OF THE POWER HE ONCE HAD AS MASTER OF AN EMPIRE EXTENDING FROM DEL MONTE FRESH PRODUCE IN THE US TO SANSUI ELECTRONICS IN JAPAN HIS MAIN SUPPORTER IN TURKEY PRESIDENT TURGUT OZAL DIED LAST MONTH POLLY PECK'S DEL MONTE FRESH PRODUCE LINE WHICH WAS RECENTLY SOLD IS UNRELATED TO DEL MONTE FOODS INC A CLOSELY HELD INDEPENDENT COMPANY BASED IN SAN FRANCISCO THE NADIRCONTROLLED KIBRIS NEWSPAPER NORTH CYPRUS'S BIGGEST IS TRYING TO BUILD HIS IMAGE AS A MUSLIM ROBIN HOOD STEALING FROM THE RICH AND GIVING TO THE POOR IN THE FORM OF INVESTMENT IN TURKISH CYPRUS AND BATTLING AGAINST A PLOT PATENTED BY THE CHRISTIAN CRUSADERS MR NADIR WAS KNOWN FOR CHARITY AND GENEROSITY TO FRIENDS ON AN ISLAND THAT HAS BEEN STRUGGLING UNDER EMBARGOES SINCE 1974 BUT HE IS STILL HATED BY TURKISH CYPRIOT LEFTISTS FOR HIS BACKING OF THE RULING RIGHTWING NATIONAL UNITY PARTY IN THEIR VICTORY IN 1990 PARLIAMENTARY ELECTIONS TURKISH CYPRIOT LEADER RAUF DENKTASH IS WORRIED ABOUT THE EFFECT OF BRITISH ANGER ON BOTH HIS COUNTRY'S ECONOMY AND UNITED NATIONSSPONSORED NEGOTIATIONS WITH HIS GREEK CYPRIOT RIVALS BUT HE AND OPPOSITION LEADERS KNOW THEY RISK HUGE UNPOPULARITY IF THEY TOUCH MR NADIR THERE IS MUCH PUBLIC SYMPATHY WITH MR NADIR'S CLAIMS THAT POLLY PECK'S RUNAWAY 1980S SUCCESS WAS THE TARGET OF A PLOT BY THE GREEKS ARCHENEMIES OF THE TURKS MR NADIR'S STRATEGY SAYS ONE OF HIS LAWYERS ALI RIZA GORBON WILL BE TO COMPILE EVIDENCE FOR PUBLICATION OF ALLEGED ABUSES DURING BRITAIN'S FUMBLED INVESTIGATION OF POLLY PECK'S SPECTACULAR DOWNFALL IN SEPTEMBER 1990 WHEN ITS SHARES COLLAPSED ON THE LONDON STOCK EXCHANGE AT ITS PEAK IN THE SUMMER OF 1990 POLLY PECK WAS WORTH 2 BILLION ON THE STOCK MARKET MR NADIR TOLD A BRITISH TELEVISION INTERVIEWER THERE COULD BE A VERY PLEASANT SURPRISE FOR POLLY PECK SHAREHOLDERS I'VE GOT TWO AIMS IN LIFE ONE IS TO CLEAR MY NAME AND TWO IS TO ENSURE THAT THE SHAREHOLDERS WHO HAVE HAD THE RAWEST DEAL EVER ARE COMPENSATED MEANWHILE MR NADIR HAS VOWED TO MAKE INVESTMENTS IN TURKEY AND NORTH CYPRUS EVEN MORE INTERESTING THAN BEFORE MORE OMINOUSLY A NEWSPAPER RUN BY HIS SON IN ISTANBUL HAS HINTED THAT MR NADIR MAY COME TO TURKEY LOOKING FOR INVESTMENTS THAT DURING HIS TROUBLES WERE PARKED WITH FRIENDS WHO THEN ALLEGEDLY TURNED AGAINST HIM AND SOLD THE STAKES SOME PEOPLE WILL BE CALLED TO ACCOUNT FOR WHAT THEY DID THEY WILL SEE WHO IS ASIL NADIR SAID THE NEWSPAPER FOTOSPOR SOME HOPE THAT HIS RETURN TO NORTH CYPRUS MAY MAKE HIM ONCE AGAIN THE ISLAND'S BIGGEST PRIVATE EMPLOYER ONE OF MR NADIR'S LAWYERS AZIZ MENTESH CLAIMS THE FINANCIER IS STILL WORTH 20 MILLION TO 25 MILLION IN A TANGLED MESH OF COMPANIES IN NORTH CYPRUS AND AROUND THE WORLD 9305120082 930512 DEFENSE AIDE TELLS MCDONNELL DOUGLAS THAT C17 CARGO JET MAY BE CANCELLED BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PENTAGON WARNED MCDONNELL DOUGLAS CORP THAT IT MAY CANCEL THE C17 MILITARY CARGO JET UNLESS THE AEROSPACE COMPANY TAKES IMMEDIATE AGGRESSIVE ACTION TO IMPROVE ITS MANAGEMENT OF THE PROGRAM THE ACTION BY JOHN DEUTCH UNDERSECRETARY OF DEFENSE FOR ACQUISITION FOLLOWED MONTHS OF VEILED WARNINGS FROM THE PENTAGON MOST NOTABLY DEFENSE SECRETARY LES ASPIN'S ASSERTION IN MARCH THAT THE PROGRAM WAS IMPORTANT BUT BOLLIXED UP LAST MONTH MR ASPIN PUNISHED THE AIR FORCE GENERAL WHO OVERSAW THE PROGRAM AT ONE POINT BUT GAVE MCDONNELL DOUGLAS THE COMFORT OF NOT FINDING ANY WRONGDOING BY THE COMPANY BECAUSE THE MILITARY NEEDS AIRLIFT CAPABILITY AND NO ALTERNATIVE TO THE C17 CURRENTLY EXISTS MR DEUTCH SAID HE HAS DECIDED AGAINST RECOMMENDING CANCELLATION OF THE PROGRAM BUT THAT DECISION WILL BE REVISITED IN AUGUST HE ADDED IN THE INTERIM HE SAID MCDONNELL DOUGLAS MUST FIX SEVERAL GLARING WEAKNESSES INCLUDING PROBLEMS WITH THE AIRCRAFT'S SOFTWARE AND STRUCTURAL DEFICIENCIES AND INSTABILITY IN THE COMPANY'S WORK FORCE IN AUGUST MR DEUTCH SAID PENTAGON OFFICIALS WILL MEET TO CONSIDER SEVERAL POSSIBILITIES FOR THE C17 INCLUDING TERMINATION A MAJOR MANAGEMENT RESTRUCTURING OR CONTINUING THE WORKOUT WITH MCDONNELL DOUGLAS MR DEUTCH'S COMMENTS WERE MADE IN A SERIES OF STATEMENTS TO REPORTERS CONGRESS MCDONNELL DOUGLAS AND OTHER DEFENSE OFFICIALS A MCDONNELL DOUGLAS SPOKESMAN SAID THE COMPANY HAS ASSURED UNDERSECRETARY DEUTCH OF OUR FULL COOPERATION IN THE ACTIONS HE HAS ORDERED ALTHOUGH COMPANY MANAGERS REMAIN CONFIDENT THE PROGRAM IS VIABLE AND HAS CORRECTED ITS TECHNICAL AND PRODUCTION PROBLEMS HOWEVER TURNOVER IN THE COMPANY'S 3650PERSON C17 WORK FORCE REMAINS A SERIOUS PROBLEM FOR THE COMPANY BECAUSE OF LAYOFFS IN OTHER OPERATIONS HIGHERSENIORITY WORKERS ARE SHIFTED INTO THE C17 PROGRAM REQUIRING RETRAINING AND CAUSING A 35 RATE OF EMPLOYEE TURNOVER LAST YEAR THIS YEAR THE SPOKESMAN SAID THE COMPANY EXPECTS TURNOVER OF MORE THAN 40 THE PENTAGON PLANS TO BUY 120 C17S AT A TOTAL COST OF PROBABLY MORE THAN 40 BILLION MR DEUTCH SAID SO FAR SEVEN C17S HAVE BEEN BUILT BUT THE PROGRAM IS BEHIND SCHEDULE AND THE COMPANY HAS POSTED A LOSS OF ABOUT 1 BILLION ON THE FIRST FIXEDPRICE PART OF ITS CONTRACT TO DEVELOP THE C17 AND BUILD THE FIRST FEW AIRCRAFT EVEN IF DEFENSE OFFICIALS DECIDE THIS SUMMER TO CONTINUE THE PROGRAM THE C17 STILL FACES OBSTACLES IN CONGRESS WHICH CONTROLS FUNDING FOR THE PROGRAM SOME CRITICS HAVE SUGGESTED THE PROGRAM COULD BE SHIFTED TO ANOTHER MANUFACTURER LOCKHEED CHAIRMAN DANIEL TELLEP SAID IN REMARKS AFTER THAT COMPANY'S ANNUAL MEETING IN LOS ANGELES THAT IN PROPOSING MILITARYTRANSPORT PROGRAMS TO CONGRESS AND THE AIR FORCE LOCKHEED IS NOT TARGETING RIVAL MCDONNELL DOUGLAS' C17 PROGRAM LOCKHEED IS NOT OUT TO KILL THE C17 HE SAID ADDING THAT I THINK THE C17 WILL BE SUPPORTED IN WASHINGTON SOME MCDONNELL DOUGLAS MANAGERS HAVE QUESTIONED LOCKHEED'S INTENT MR TELLEP SAID HIS COMPANY HAS PROPOSED A SERVICELIFE EXTENSION PROGRAM FOR ITS C141 AIRLIFTER TO COMPLEMENT THE C17 HE CONFIRMED THAT LOCKHEED PITCHED A RESTART OF ITS C5 TRANSPORT LINE BUT ONLY AT THE REQUEST OF HOUSE ARMED SERVICES COMMITTEE STAFFERS COMPLICATING ALL THIS IS A PENDING REVIEW AT THE PENTAGON OF THE MILITARY'S ACQUISITION PLANS FOR TACTICAL AIRCRAFT AMONG THE PROGRAMS BEING REVIEWED FOR POSSIBLE CANCELLATION IS THE E/F VERSION OF THE NAVY'S F/A18 FIGHTER WHICH IS BUILT MAINLY BY MCDONNELL DOUGLAS THE COMPANY WOULD BE HURT BADLY IF BOTH THE E/F AND THE C17 WERE TERMINATED THE E/F IS EXPECTED TO SURVIVE ITS REVIEW WHICH ALSO WILL BE COMPLETED SOMETIME THIS SUMMER BUT IF IT DOES THAT COULD MAKE IT EASIER FOR THE PENTAGON TO TAKE ACTION AGAINST THE C17 IN HIS LETTER TO MCDONNELL DOUGLAS MR DEUTCH SAID HE IS CONCERNED ABOUT THE COMPANY'S FILING OF CLAIMS TO THE AIR FORCE FOR ADDITIONAL COSTS THAT ARE SUPPOSED TO BE COVERED BY THE GOVERNMENT HE SAID MCDONNELL DOUGLAS HAS FILED 425 MILLION IN CLAIMS AND INDICATED IT HAS MANY MORE TO FILE THE COMPANY HAS SAID IT COULD FILE AS MUCH AS 1 BILLION IN ADDED CLAIMS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY ST LOUISBASED MCDONNELL DOUGLAS CLOSED AT 61875 DOWN 1 JEFF COLE IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9305120081 930512 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE FEWER OF TODAY'S CHILDREN LIVE IN FAMILIES THAT FIT THE FATHER KNOWS BEST MOLD BUT SUCH TRADITIONAL HOUSEHOLDS WEREN'T THE NORM EVEN FOR YESTERDAY'S CHILDREN A CENSUS BUREAU DEMOGRAPHER CONCLUDES DONALD HERNANDEZ CHIEF OF THE BUREAU'S MARRIAGE AND FAMILY BRANCH AND AUTHOR OF A BOOK ON THE SUBJECT DEFINED TRADITIONAL FAMILIES AS THOSE IN WHICH THE FATHER WORKS FULL TIME YEARROUND THE MOTHER STAYS AT HOME AND ALL CHILDREN IN THE FAMILY WERE BORN AFTER THE PARENTS' ONLY MARRIAGE HE ESTIMATES THAT FEWER THAN HALF OF ALL CHILDREN BORN SINCE 1940 HAVE COME INTO FAMILIES THAT MEET THESE CRITERIA IN LOOKING AT CENSUS BUREAU DATA HE FOUND THAT 41 OF CHILDREN BORN IN THE 12 MONTHS BEFORE THE 1940 CENSUS CAME INTO THIS TYPE OF FAMILY THE SHARE ROSE TO ABOUT 45 FOR CHILDREN BORN IN THE YEAR BEFORE THE 1950 CENSUS THEN FELL TO 43 FOR THE 1960 CENSUS 37 FOR 1970 27 FOR 1980 AND ABOUT 20 BY 1988 THE PROPORTION OF 17YEAROLDS WHO LIVE IN FAMILIES THAT MEET MR HERNANDEZ'S DEFINITION HAS BEEN SMALLER THAN FOR NEWBORNS AND HAS FALLEN STEADILY TO ABOUT 10 IN 1989 FROM 26 IN 1940 FATHERS WITHOUT STEADY JOBS ARE THE BIGGEST REASON SO FEW CHILDREN HAVE COME INTO FATHER KNOWS BEST SITUATIONS OVER THE PAST SEVERAL DECADES BUT THE PROPORTION OF TRADITIONAL FAMILIES HAS SHRUNK BECAUSE OF INCREASES IN THE NUMBER OF WORKING MOTHERS AND ABSENT FATHERS THE SHARE OF CHILDREN UNDER A YEAR OLD WITH MOTHERS IN THE PAID LABOR FORCE ROSE TO 33 IN 1980 FROM 5 IN 1940 AND THE SHARE BORN INTO FAMILIES WITHOUT FATHERS PRESENT ROSE TO 17 BY 1980 FROM FEWER THAN 10 IN 1940 AND 1950 THE PROPORTION OF TEENS WITHOUT A FATHER AROUND HAS STAYED WITHIN A NARROWER RANGE BETWEEN 23 IN 1940 AND 1960 AND 27 IN 1950 AND 1980 BUT THOSE FIGURES MASK A BIG CHANGE MR HERNANDEZ SAYS TEENS USED TO LOSE THEIR FATHERS MAINLY THROUGH DEATH WHILE NOW FATHERS ARE ABSENT LARGELY BECAUSE OF DIVORCE MOST OF THE WOMEN WHO AREN'T IN THE LABOR FORCE ARE EITHER TAKING CARE OF THE HOUSEHOLD OR TAKING IT EASY IN THEIR RETIREMENT YEARS MORE THAN HALF OF AMERICAN WOMEN AGE 16 OR OLDER WORK IN THE PAID CIVILIAN LABOR FORCE ACCORDING TO THE BUREAU OF LABOR STATISTICS AMONG THE 42 MILLION WOMEN WHO AREN'T IN THE LABOR FORCE MORE THAN HALF 58 ARE KEEPING HOUSE OFTEN RAISING CHILDREN NINE PERCENT ARE IN SCHOOL AND 4 ARE UNABLE TO WORK THE REMAINING 29 CITE SOME OTHER REASON CHIEFLY RETIREMENT FOR NOT WORKING SCHOOL IS THE BIGGEST FACTOR KEEPING TEENAGE WOMEN OUT OF THE LABOR FORCE ACCOUNTING FOR NEARLY THREEQUARTERS OF NONWORKERS AGES 16 TO 19 FOR WOMEN IN THEIR EARLY 20S SCHOOL REMAINS IMPORTANT BUT KEEPING HOUSE ECLIPSES IT AS A REASON NOT TO WORK 51 VS 34 WOMEN AGES 25 TO 54 ARE MORE LIKELY THAN YOUNGER OR OLDER WOMEN TO WORK IN THE PAID LABOR FORCE FOR THOSE WHO DON'T KEEPING HOUSE IS THE OVERWHELMING REASON GIVEN BY 78 OF THE 14 MILLION WOMEN IN THIS AGE GROUP WHO AREN'T PAID TO WORK THIS IS OFTEN A TEMPORARY SITUATION WHILE THE CHILDREN ARE YOUNG KEEPING HOUSE IS ALSO THE MOST COMMON REASON WOMEN 55 AND OLDER AREN'T IN THE LABOR FORCE OTHER REASONS SUCH AS RETIREMENT ALSO BECOME SIGNIFICANT BY AGE 65 BUT MANY OF TODAY'S OLDER WOMEN WERE ALWAYS HOMEMAKERS AND SO DON'T CONSIDER THEMSELVES TO HAVE RETIRED THE VAST MAJORITY OF MEN 65 AND OLDER WHO DON'T WORK FALL INTO THE OTHER CATEGORY INCLUDING MANY WHO ARE RETIRED THREE IN FOUR MEN UNDER THE AGE OF 25 WHO DON'T WORK LIST SCHOOL AS THE REASON FOR THE 7 OF MEN AGES 25 TO 54 WHO AREN'T IN THE LABOR FORCE 27 ARE UNABLE TO WORK 12 ARE IN SCHOOL AND 53 LIST OTHER REASONS JUST 7 OF MEN IN THE PRIME CHILDREARING YEARS OF 25 TO 54 ARE KEEPING HOUSE THE COST OF HIGHER EDUCATION IS IN THE STRATOSPHERE BUT STUDENTS LOOK AT THE PRODUCT BEFORE THE PRICE TAG IN CHOOSING A COLLEGE THE GRADUATE SCHOOL OF EDUCATION AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES SURVEYED MORE THAN 200000 FIRSTTIME STUDENTS WHO ENROLLED IN TWOYEAR AND FOURYEAR COLLEGES LAST FALL THE SURVEY FOUND THAT ACADEMIC REPUTATION WAS THE STUDENTS' NO 1 REASON FOR CHOOSING A SCHOOL CITED AS VERY IMPORTANT BY MORE THAN HALF OF THOSE CONTACTED THE LIKELIHOOD OF GETTING A GOOD JOB AFTER GRADUATING RANKED SECOND FOLLOWED BY THE SIZE OF THE SCHOOL LOW TUITION AND FINANCIAL ASSISTANCE PROVIDED AND THOUGH SOME YOUNG ADULTS MAY WANT TO GET AWAY FROM THEIR PARENTS AND PARTY THE SURVEY FOUND THAT WANTING TO LIVE NEAR HOME SLIGHTLY OUTWEIGHED A SCHOOL'S SOCIAL REPUTATION ALMOST THREE IN FOUR OF THE FRESHMEN SAID THEY WERE ATTENDING THEIR FIRSTCHOICE SCHOOL IN 1992 TWENTY PERCENT WERE AT THEIR SECONDCHOICE SCHOOL AND JUST 8 HAD TO SETTLE FOR A THIRD OR LESSER CHOICE ACCORDING TO THE SURVEY GLOBAL NETWORKS OF AUTOMATED TELLER MACHINES HAVE CHANGED THE WAY PEOPLE HANDLE MONEY WHEN THEY TRAVEL A STUDY CONDUCTED FOR CIRRUS SYSTEM AN INTERNATIONAL CASHMACHINE NETWORK BY RESEARCH PARTNERSHIPS GLEN ELLYN ILL FINDS THAT 57 OF AMERICAN ADULTS WHO HAVE CREDIT OR BANK CARDS HAVE USED ATMS ON THE ROAD TWOTHIRDS NOW TAKE LESS CASH WITH THEM ON TRIPS 44 USE TRAVELERS CHECKS LESS OFTEN AND 37 MAKE FEWER PURCHASES BY CREDIT CARD TENNESSEE HAS THE GREATEST DENSITY OF CEMETERIES IN THE US AT 30 PER 100 SQUARE MILES ALASKA HAS ONLY 16 CEMETERIES FEWER THAN 01 PER 100 SQUARE MILES GEOGRAPHY PROF WILBUR ZELINSKY OF PENNSYLVANIA STATE UNIVERSITY SAYS THAT POPULATION DENSITY IS OFTEN CORRELATED WITH CEMETERY DENSITY AND THAT RECENTLY SETTLED AREAS TEND TO HAVE FEWER CEMETERIES BECAUSE THEY HAVE BIGGER COMMERCIAL ONES 9305120080 930512 WHO'S NEWS SOME EDPER' FIRMS AID OFFICERS HURT BY DROP IN STOCKS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO SOME OF THE MAJOR COMPANIES CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN ARE TAKING STEPS TO HELP EXECUTIVES HURT BY THE DECLINE IN THE VALUE OF THE SHARES OF THE COMPANIES THEY RUN FOR DECADES THE COMPANIES HAVE EXTENDED LARGE CHEAP LOANS TO KEY EXECUTIVES TO ALLOW THEM TO BUY STOCK WHEN GROUP SHARE PRICES ROSE THE STRATEGY TURNED MANY INTO MILLIONAIRES BUT THE BATTERING THE EDPER GROUP STOCKS HAVE TAKEN IN RECENT YEARS HAS LEFT EXECUTIVES OWING MORE THAN THEIR SHARES WERE WORTH AT HEES INTERNATIONAL BANCORP THE GROUP'S KEY HOLDING COMPANY THE TERMS OF THE LOANS HAVE BEEN EXTENDED TO ALLOW EXECUTIVES MORE TIME TO REPAY IN ADDITION HEES WILL LEND SIX TOP OFFICERS AS MUCH AS ONE MILLION CANADIAN DOLLARS US784437 EACH TO ALLOW THEM TO REFINANCE BANK LOANS NO LONGER SUPPORTED BY THE VALUE OF THE EDPER STOCKS THAT SERVE AS COLLATERAL EACH COMPANY HAS DEALT WITH THIS DIFFERENTLY SAID ROBERT HARDING PRESIDENT OF HEES NORANDA INC A MINING ENERGY AND FOREST PRODUCTS CONCERN 49 CONTROLLED BY THE BRONFMANS IS ONE OF THE FEW EDPER COMPANIES WHOSE STOCK HAS RISEN IN RECENT MONTHS AS A RESULT THE COMPANY APPROVED THE SALE IN THE PUBLIC MARKET BY 50 EXECUTIVES OF A TOTAL OF 16 MILLION SHARES THAT HAD BEEN ACQUIRED UNDER THE CONTROVERSIAL SHARE OWNERSHIP PLAN THE TOTAL PROCEEDS OF C328 MILLION WERE ENOUGH TO COVER THE C30 MILLION IN LOANS EXTENDED TO ALLOW THE EXECUTIVES TO BUY THE SHARES SAYS COURTNEY PRATT SENIOR VICE PRESIDENT NORANDA SAID IT WILL ISSUE STOCK OPTIONS TO COMPANY OFFICIALS IN THE FUTURE RATHER THAN BURDENING THEM WITH LARGE LOANS THE INTENT OF THIS WAS TO DELIVER SIGNIFICANT VALUE TO PEOPLE NOT HURT THEM MR PRATT SAID TYPICALLY EDPER COMPANIES HAVE RELIED ON PROFITS FROM SHARE PURCHASES TO PROVIDE AT LEAST HALF OF AN EXECUTIVE'S TOTAL COMPENSATION ANALYSTS HAVE ESTIMATED THAT GROUP EXECUTIVES IN THE PAST HAVE OWED AS MUCH AS C500 MILLION TO COMPANIES AND OUTSIDE BANKERS IN CONNECTION WITH THE LOANS SOME EDPER COMPANIES HAVE YET TO DISCLOSE PLANS TO ASSIST MANAGERS BURDENED BY STOCKPURCHASE DEBTS AMONG THEM IS ROYAL TRUSTCO LTD SOME OF WHOSE TOP OFFICIALS TOOK OUT LOANS TO BUY STOCK NEAR ITS RECORD HIGH OF C16 A SHARE THE STOCK CLOSED YESTERDAY ON THE TORONTO STOCK EXCHANGE AT 45 CANADIAN CENTS DOWN FOUR CENTS PETER AND EDWARD BRONFMAN ARE COUSINS OF MONTREAL'S BRONFMAN DISTILLING DYNASTY WHO CONTROL SEAGRAM CO THE TWO FAMILIES HAVE NO BUSINESS OPERATIONS IN COMMON 9305120079 930512 REVIEW & OUTLOOK EDITORIAL WHO IS WEBSTER HUBBELL IV SO WEBSTER HUBBELL FACES OPPOSITION TO HIS NOMINATION AS ASSOCIATE ATTORNEY GENERAL OSTENSIBLY BECAUSE HE BELONGS TO A COUNTRY CLUB THAT UNTIL RECENTLY HAD NO BLACK MEMBERS WE DON'T THINK THIS GOOD REASON TO REJECT A NOMINEE AND CONTINUE TO BELIEVE PRESIDENTS SHOULD GET THE ADVISERS THEY WANT SO HAVING MADE WEBSTER HUBBELL A WORD IN SOME HOUSEHOLDS WE HEREBY TENDER OUR ENDORSEMENT WE DO NOT JEST OUR OFFER IS SUBJECT ONLY TO THE USUAL CAVEAT THAT NO LANDMINES EXPLODE AS HIS RECORD IS EXPLORED THE SERIOUS POINT HERE IS THAT NO CHIEF EXECUTIVE IS GOING TO BE SILLY ENOUGH TO SURRENDER CONTROL OVER JUSTICE THE FOUNDERS PUT JUSTICE UNDER THE PRESIDENT PRECISELY BECAUSE THEY UNDERSTOOD THE IMPORTANCE OF WHAT THE FEDERALIST PAPERS CALL THE UNITARY EXECUTIVE A SYSTEM OF CHECKS AND BALANCES REQUIRES AN EXECUTIVE STRONG ENOUGH TO RESIST THE ENCROACHMENTS OF CONGRESS WHILE THE RISK OF POLITICIZING JUSTICE IS ALWAYS THERE THE VOTERS ARE A BETTER CHECK ON ABUSE THAN IS SOME MYTHICAL INDEPENDENCE MR CLINTON PRESUMABLY KNOWS THIS WHICH IS WHY HE WANTS HIS FRIEND AND FORMER LITTLE ROCK MAYOR AT JUSTICE A MORE CANDID PRESIDENT MIGHT HAVE NAMED MR HUBBELL AS ATTORNEY GENERAL JUST AS JIMMY CARTER PUT TRUSTED FRIEND AND LAWYER GRIFFIN BELL IN THE JOB BUT MR CLINTON FELT BOUND BY HIS PLEDGES OF DIVERSITY AND INSTEAD NAMED IN SUCCESSION THREE WOMEN HE DIDN'T KNOW YET DURING THE WACO CRISIS MR CLINTON'S JUSTICE CONTACT WAS MR HUBBELL AS EVEN MS RENO HAS PUBLICLY ADMITTED ESPECIALLY IN A CRISIS PRESIDENTS NEED ADVISERS THEY KNOW THEY CAN TRUST MR HUBBELL'S OPPONENTS ARE AN ODD UNION ON THE RIGHT PAUL WEYRICH'S COALITIONS FOR AMERICA WANTS TO EXPOSE THE HYPOCRISY OF DEMOCRATS WHO LAMBASTED REPUBLICAN NOMINEES FOR BELONGING TO ALLWHITE CLUBS THIS PUBLICITY HAS IN TURN COAXED THE LIBERAL MORALISTS FROM THEIR HOLY PLACES SENATOR ST PAUL SIMON OF ILLINOIS SAYS MR HUBBELL IS GOING TO HAVE TO CLARIFY THE SITUATION BEFORE THE COMMITTEE ADDING THAT IDEALLY I WOULD HAVE PREFERRED THAT HE NOT BELONG TO A CLUB THAT HAS NOT BEEN ADMITTING BLACKS NO DOUBT RALPH NEAS AND ANTHONY LEWIS WILL WEIGH IN SOON THE CRITICS OF HYPOCRISY HAVE A POINT SINCE MR SIMON WOULD BE ASKING FOR MORE THAN A CLARIFICATION IF MR HUBBELL WERE A REPUBLICAN THE COUNTRY CLUB STANDARD WASN'T EVEN ON THE TABLE UNTIL MR SIMON AND HOWARD METZENBAUM DECIDED IT WAS A GOOD WAY TO BLOCK REPUBLICAN NOMINEES IN THE LATE 1980S SOME SINCERE CRITICS FROM THE ARKANSAS NAACP HAVE ALSO SPOKEN UP THOUGH THERE'S NO EVIDENCE THAT MR HUBBELL DISCRIMINATED AGAINST ANYONE SENATE REPUBLICANS MIGHT BETTER AIM THEIR GUNS AT THE FAR STRANGER CROWD NOW SETTLING IN ELSEWHERE AT JUSTICE LANI GUINIER MR CLINTON'S CHOICE FOR THE CIVIL RIGHTS POST WANTS TO BALKANIZE AMERICA BY RACE WALTER DELLINGER THE NOMINEE FOR OFFICE OF LEGAL COUNSEL WHICH IS SUPPOSED TO PROTECT PRESIDENTIAL POWER SIDED WITH CONGRESSIONAL CLAIMS THROUGHOUT THE 1980S AND SOMEONE SHOULD ASK GERALD TORRES THE ENVIRONMENTAL NOMINEE IF HE THINKS PROPERTY RIGHTS ARE EVEN PROTECTED BY THE CONSTITUTION DREW DAYS THE SOLICITOR GENERALDESIGNATE COMES OUT OF THE LARRY TRIBE SCHOOL OF EXOTIC LEGAL ACTIVISM THESE NOMINEES ARE POLITICAL NOT BECAUSE THEY ARE FRIENDS WITH A PRESIDENT BUT IN A MUCH MORE DANGEROUS SENSE THEY'RE THE SORT OF LAW SCHOOL PROFESSORS/ACTIVISTS WHO WANT TO VISIT THEIR STRANGE THEORIES ON THE REST OF US THIS SEEMS TO BE THE LEGALPOLITICAL COMMUNITY THAT ADVISES HILLARY AND WE SUSPECT BILL FELT OBLIGED TO NAME SUCH PEOPLE TO APPEASE HIS PARTY'S LEFT AND THAT HE EXPECTS MR HUBBELL TO TEMPER THEIR ACTIVISM WITH POLITICAL REALITY SOMEONE HAS TO PROVIDE ADULT SUPERVISION NOW THAT MR HUBBELL HAS OUR ENDORSEMENT WE WOULD LIKE TO ASK TWO FAVORS IN RETURN ONE HE SET THE PRESIDENT STRAIGHT ON THE INDEPENDENT COUNSEL ISSUE WITH EXACTLY THE SAME EXECUTIVEPOWERS ARGUMENTS WE HAVE JUST RECITED IN BACKING HIS NOMINATION TWO AGAIN FOR EXACTLY THE SAME REASONS HE OUGHT TO GET UP A LETTER OF APOLOGY TO ED MEESE THROUGHOUT THE REAGAN YEARS MR MEESE WAS PILLORIED BY DEMOCRATS AND THEIR MEDIA ACOLYTES AS A PRESIDENTIAL CRONY WHO POLITICIZED THE JUSTICE DEPARTMENT PRESIDENT CLINTON AND ATTORNEY GENERAL RENO ALSO PICKED UP THE REFRAIN PERHAPS MR HUBBELL A PRESIDENTIAL GOLFING BUDDY AND FORMER LAW PARTNER OF HILLARY CLINTON CAN NOW GET THEM TO SIGN UP FOR THE PRINCIPLE THAT A PRESIDENT NEEDS HIS OWN MAN AT JUSTICE AFTER ALL MR MEESE IN TURN COULD OFFER POINTERS ON HOW TO SURVIVE PAUL SIMON HOWARD METZENBAUM AND THE REST OF JOE BIDEN'S SENATE JUDICIARY COMMITTEE MR HUBBELL CAN SEND THE APOLOGY TO MR MEESE C/O THE HERITAGE FOUNDATION 214 MASSACHUSETTS AVE NE WASHINGTON DC 20002 9305120078 930512 ECONOMY CLINTON BID TO TRIM SOME FIRMS' TAXES IS PROVING MORE COSTLY THAN THOUGHT BY DAVID WESSEL AND JACKIE CALMES STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S PROPOSAL TO REDUCE TAXES PAID BY SOME BIG CAPITALINTENSIVE COMPANIES IS TURNING OUT TO BE FAR MORE COSTLY THAN FIRST REALIZED SPARKING ACCUSATIONS THAT MR CLINTON IS GUTTING A KEY FEATURE OF THE 1986 TAX REFORM ACT AT ISSUE IS THE ALTERNATIVE MINIMUM TAX CREATED TO MAKE SURE THAT ALL COMPANIES PAY SOME CORPORATE INCOME TAX NO MATTER HOW MANY DEDUCTIONS AND CREDITS THEY CAN CLAIM BECAUSE OF ITS DESIGN THE TAX HAS HIT MANY BIG CAPITALINTENSIVE COMPANIES PARTICULARLY HARD IN THE PAST FEW YEARS MR CLINTON LIKE GEORGE BUSH BEFORE HIM SEEKS TO PARTIALLY LIFT THAT BURDEN IN FEBRUARY THE TREASURY SAID MR CLINTON'S CHANGES IN THE MINIMUM TAX WOULD COST ABOUT 16 BILLION OVER FIVE YEARS IN EARLY APRIL THEY BOOSTED THE ESTIMATE TO 25 BILLION AFTER CATCHING AN ERROR THEY NOW SAY IT WOULD COST ABOUT 5 BILLION OVER FIVE YEARS CONGRESSIONAL ESTIMATORS WHO HAVE ALSO REVISED THEIR FIGURES PUT THE COST AT 8 BILLION BY WIPING OUT ALMOST ALL OF THE ALTERNATIVE MINIMUM TAX' CLINTON'S PROPOSAL WILL ALMOST CERTAINLY TURN MANY LARGE PROFITABLE COMPANIES BACK INTO CORPORATE FREELOADERS SAID ROBERT MCINTYRE OF THE LABORBACKED CITIZENS FOR TAX JUSTICE WHICH HELPED PRODUCE THE PUBLIC OUTRAGE THAT LED TO PASSAGE OF THE ALTERNATIVE MINIMUM TAX MR MCINTYRE SAID THAT WITHOUT ANY CHANGE IN LAW THE TAX WOULD PRODUCE ABOUT 4 BILLION A YEAR THE TREASURY SAID ITS PROPOSAL WILL SAVE COMPANIES SOME MONEY THAT'S THE IDEA BUT WON'T BRING BACK THE DAYS OF BIG COMPANIES THAT AVOID TAXES ALTOGETHER OUR EXPECTATION IS THAT YOU'LL BE SEEING A LOT OF COMPANIES PAYING A LOWER AMT RATHER THAN SOME COMPANIES ZEROING OUT THEIR TAX LIABILITY A TREASURY SPOKESMAN SAID THE TREASURY SPOKESMAN ADDED THAT ON AVERAGE THE ALTERNATIVE MINIMUM TAX ACCOUNTS FOR ONLY HALF THE TAXES PAID BY COMPANIES SUBJECT TO IT THE OTHER HALF IS PAID IN REGULAR CORPORATE TAXES BUT MR MCINTYRE COUNTERS THAT SEVERAL BIG AND PROFITABLE COMPANIES WOULD HAVE ESCAPED TAXES ALTOGETHER LAST YEAR IF NOT FOR THE ALTERNATIVE MINIMUM TAX BIG COMPANIES HAVE BEEN PRESSING HARD FOR RELIEF FROM THE TAX ARGUING THAT IT HAS HAD A PERVERSE EFFECT PENALIZING COMPANIES THAT KEEP MAKING BIG INVESTMENTS EVEN THOUGH THEIR PROFITS ARE DEPRESSED BY A RECESSION IT IS HITTING HARDER THAN WAS ORIGINALLY INTENDED IN 1986 SAID ROBERT BROWN OF KPMG PEAT MARWICK THE ACCOUNTING FIRM THE RULE CHANGES THAT MR CLINTON PROPOSES ARE MORE GENEROUS THAN THOSE OFFERED BY MR BUSH AND APPROVED BY CONGRESS LAST YEAR AS PART OF A TAX BILL THAT MR BUSH VETOED ESSENTIALLY MR CLINTON WOULD ALLOW COMPANIES COVERED BY THE TAX TO TAKE BIGGER WRITEOFFS FOR THEIR INVESTMENTS COMPARED WITH CURRENT LAW AND THE VERSION THAT PASSED CONGRESS LAST YEAR THE CLINTON PLAN FAVORS COMPANIES WITH LONGLIVED INVESTMENTS SUCH AS POWER PLANTS STEEL MILLS AND COMMERCIAL AIRCRAFT AUTOS AND COMPUTERS GET MUCH LESS OF A BENEFIT THE HOUSE WAYS AND MEANS COMMITTEE PUT OFF ANY VOTES ON TAX ISSUES UNTIL TODAY AT THE EARLIEST THE COMMITTEE APPROVED SEVERAL TRADE PROVISIONS TO BE INCLUDED IN PRESIDENT CLINTON'S TAX PACKAGE IN LINE WITH ADMINISTRATION REQUESTS THE LAWMAKERS VOTED TO EXTEND UNTIL NEXT APRIL THE PRESIDENT'S ABILITY TO RECEIVE FASTTRACK CONSIDERATION IN CONGRESS OF ANY TRADE AGREEMENT THAT MIGHT COME OUT OF WORLD TRADE TALKS UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND TO EXTEND THROUGH SEPTEMBER 1994 A SYSTEM OF TARIFF BREAKS FOR POOR COUNTRIES THE COMMITTEE ALSO AGREED TO DELAY FOR ONE YEAR A PROVISION OF A 1988 LAW THAT WOULD REQUIRE STATES BEGINNING IN OCTOBER TO PROVIDE JOBS OR AT LEAST 16 HOURS OF ONTHEJOB TRAINING TO AT LEAST 40 OF UNEMPLOYED COUPLES ON WELFARE 9305120076 930512 INTERNATIONAL ITALY'S FONDIARIA SELLS ITS ENTIRE 20 STAKE IN GERMANY'S AMB SPECIAL TO THE WALL STREET JOURNAL MILAN ITALIAN INSURER FONDIARIA SPA SAID IT SOLD ITS ENTIRE 20 SHARE IN GERMAN INSURER AMB FOR 985 MILLION MARKS 6128 MILLION AMB'S FULL NAME IS AACHENER & MUENCHENER BETEILIGUNGS AG FONDIARIA SAID THE SALE OF THE STAKE TO A GROUP OF GERMAN INVESTORS WON'T BE FORMALLY CLOSED UNTIL MAY 31 1994 INVESTORS IN THE MILAN STOCK MARKET RESPONDED POSITIVELY TO THE SALE FONDIARIA CLOSED AT 31064 LIRE 21 UP 33 FROM 30065 LIRE MONDAY AND SHARES JUMPED TO 31582 LIRE IN AFTERHOURS TRADING ITS TWO CONTROLLING SHAREHOLDERS GAIC SPA AND FERRUZZI FINANZIARIA SPA GAINED AS WELL FONDIARIA RECEIVED 1000 MARKS 622 PER SHARE FOR ITS 985000 SHARES REPRESENTING A 16 PREMIUM ON AMB'S LAST CLOSE IN FRANKFURT MONDAY OF 865 MARKS TRADING IN AMB SHARES WAS SUSPENDED YESTERDAY NEITHER FONDIARIA NOR AMB SPECIFIED WHO THE BUYERS WERE BUT GERMAN WIRE SERVICE VWD REPORTED THAT DEUTSCHE BANK AG BOUGHT 10 INSURER ALLIANZ AG BOUGHT 5 AND DRESDNER BANK AG BOUGHT 3 OF AMB A GERMAN INSURER WAS RUMORED TO HAVE BOUGHT THE REMAINING 2 STAKE IN ADDITION TO AGGRAVATING FONDIARIA'S DEBT THE AMB STAKE BECAME A DEAD WEIGHT AFTER FRENCH INSURER ASSURANCES GENERALES DE FRANCE SA LAST YEAR RAISED ITS STAKE IN THE GERMAN GROUP TO 25 BECOMING THE SHAREHOLDER OF REFERENCE INSTEAD OF FONDIARIA 9305120075 930512 FLEET FINANCIAL UNIT CUTS ITS INTEREST RATES TO QUALIFIED BORROWERS PROVIDENCE RI FLEET FINANCIAL GROUP INC SAID ITS FLEET FINANCE INC UNIT WHICH HAS BEEN ACCUSED OF CHARGING EXCESSIVELY HIGH INTEREST RATES TO LOWINCOME BORROWERS CUT ITS INTEREST RATES TO QUALIFIED BORROWERS FLEET SAID ITS UNIT WILL ORIGINATE MOST SECOND MORTGAGES AT INTEREST RATES BETWEEN 95 AND 1399 DEPENDING ON THE CREDITWORTHINESS OF BORROWERS THE RATES ARE AVAILABLE IN ALL OF THE 26 STATES IN WHICH THE UNIT OPERATES AND ARE AMONG THE LOWEST AVAILABLE ON SECOND MORTGAGES THE COMPANY SAID LAST FALL THE UNIT HAD CAPPED ITS SECONDMORTGAGE INTEREST RATES AT 18 A FLEET SPOKESMAN SAID IN A STATEMENT YESTERDAY FLEET SAID ITS UNIT ALSO CAPPED ITS LOAN ORIGINATION POINTS AT FIVE POINTS THE COMPANY ADDED THAT THE UNIT ALSO ESTABLISHED A CENTRALIZED CUSTOMER SERVICE DEPARTMENT TO MORE EFFICIENTLY MONITOR WHAT OUR CUSTOMERS ARE CONCERNED ABOUT AND WITH THE NATIONAL CONSUMERS LEAGUE LAUNCHED A CREDIT EDUCATION PROGRAM FOR CONSUMERS FLEET'S SECONDMORTGAGE LENDING UNIT HAS BEEN ACCUSED BY LOAN APPLICANTS IN SEVERAL LAWSUITS OF CHARGING EXCESSIVELY HIGH INTEREST RATES ON MORTGAGES TO LOWINCOME MINORITY HOMEOWNERS FLEET HAS DENIED THE ALLEGATIONS ASSERTING THAT ITS ANNUAL MORTGAGE RATES WEREN'T HIGHER THAN PREVAILING INDUSTRY STANDARDS FOR WHAT IT CALLED HIGHRISK LOANS TO PEOPLE WITH POOR CREDIT RATINGS 9305120074 930512 BUSINESS BRIEFS RAMSAY HEALTH CARE INC FORMED A JOINT VENTURE WITH CHI GROUP INC TO EXPAND INTO THE CARE OF MEDICAL SURGICAL AND REHABILITATION PATIENTS CAPITAL HOLDING CORP PLANS TO ACQUIRE CLOSELY HELD KNIGHT TUITION PAYMENT PLANS TERMS WEREN'T DISCLOSED CHAMBERS DEVELOPMENT CO RECEIVED A PERMIT TO BEGIN CONSTRUCTION ON AN EXPANSION OF ITS SOLIDWASTE LANDFILL IN WHITE COUNTY IND MORGAN'S FOODS INC ENDED NEGOTIATIONS TO ACQUIRE PRIME RESTAURANT GROUP MARRIOTT CORP'S HOST/TRAVEL PLAZA UNIT AGREED TO BUY THE FOOD AND BEVERAGE OPERATIONS CONTRACT FOR WASHINGTON'S NATIONAL AIRPORT FROM CLOSELY HELD INNOVATIVE AIRCOURTS OF WASHINGTON TERMS WEREN'T DISCLOSED UNISYS CORP EXPECTS REVENUE FROM ITS LOCAL AREA NETWORK SYSTEMS INTEGRATION BUSINESS TO DOUBLE THIS YEAR TO A RANGE OF BETWEEN 50 MILLION AND 100 MILLION FOR THE SECOND CONSECUTIVE YEAR MCKESSON DRUG CO A UNIT OF MCKESSON CORP WAS AWARDED A FIVEYEAR CONTRACT VALUED AT 113 MILLION TO BE THE PRIME VENDOR OF PHARMACEUTICALS FOR THE US DEPARTMENT OF VETERAN AFFAIRS 9305120073 930512 BOEING TO UNVEIL 4 BILLION ORDER FROM CONTINENTAL BY JEFF COLE AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL BOEING CO IS EXPECTED TO ANNOUNCE TODAY AN ORDER FOR AS MANY AS 100 JETLINERS FROM RECENTLY REORGANIZED CONTINENTAL AIRLINES INCLUDING WIDEBODY MODEL 767 AND ADVANCED 777 AIRLINERS THE ORDER VALUED AT MORE THAN 4 BILLION INCLUDES 75 BOEING MODEL 757 AND 737 AIRCRAFT THE CARRIER HAD ON ORDER BEFORE IT ENTERED CHAPTER 11 BANKRUPTCYLAW REORGANIZATION IN 1990 ACCORDING TO PEOPLE FAMILIAR WITH THE PLANNED ANNOUNCEMENT BOEING HAD ANNOUNCED THOSE EARLIER ORDERS BUT HAD NEVER INCLUDED THE JETS IN ITS FIRM FINANCIAL BACKLOG THE REST OF THE ORDER WHICH WILL BE ANNOUNCED JOINTLY BY ROBERT FERGUSON III CONTINENTAL PRESIDENT AND BOEING OFFICIALS THIS MORNING AT CEREMONIES IN SEATTLE WILL INCLUDE THE WIDEBODY TWINJETS FOR BOEING THE MOST IMPORTANT FEATURE OF THE SALE IS TO LAND ANOTHER CUSTOMER FOR THE NEW TWINENGINE 777 AN ADVANCED JETLINER SLATED FOR FIRST DELIVERIES IN 1995 THE LIST PRICE OF THE JETS WHICH CARRY 300 TO 400 PASSENGERS RANGES FROM 115 MILLION TO 140 MILLION EACH SPOKESMEN FOR BOEING AND CONTINENTAL BOTH DECLINED TO COMMENT WITH THE ANNNOUNCEMENT OF THE ORDER CONTINENTAL WILL REAFFIRM ITS LONGSTANDING RELATIONSHIP WITH BOEING IN MARCH IN AN ACTION APPROVED BY THE BANKRUPTCY COURT THE CARRIER CANCELED ITS REMAINING ORDERS WITH EUROPE'S AIRBUS INDUSTRIE CONSORTIUM BOEING'S PRIMARY RIVAL FOR CONTINENTAL THE AIRCRAFT WILL OFFER EFFICIENCY AS IT LOOKS TO GROW ON ITS ROUTES OVER THE PACIFIC INCLUDING SUBSTANTIAL SERVICE TO AUSTRALIA THE CARRIER ALSO HAS A HUB IN GUAM AND EXTENSIVE OPERATIONS IN ITS AIR MICRONESIA PARTNERSHIP CONTINENTAL'S PURCHASE IS A SIGNIFICANT STEP FOR A COMPANY JUST TWO WEEKS OUT OF BANKRUPTCY REORGANIZATION IT WILL ENABLE THE AIRLINE TO LOWER ITS FLEET AGE AND AIRCRAFT OPERATING EXPENSES AND RETIRE NOISY OLDER MODEL JETS EVEN SO THE CARRIER'S NEW FLEET PLAN IS FAR SMALLER THAN THE AIRLINE'S PLANS OF JUST A FEW YEARS AGO IN 1989 CONTINENTAL AGREED TO BUY AS MANY AS 40 MEDIUM AND LONGRANGE AIRCRAFT FROM AIRBUS WITH A TOTAL VALUE OF 45 BILLION CONTINENTAL'S ORDER WAS FOR 20 FIRM ORDERS AND 20 OPTIONS OF AIRBUS A330 AND A340 MODELS THAT WOULD SEAT BETWEEN 286 AND 300 PASSENGERS DELIVERY WAS TO BEGIN THIS YEAR AND CONTINUE THROUGH THE MID1990S CONTINENTAL REJECTED THE AIRBUS CONTRACT IN BANKRUPTCY COURT IN MARCH BUT IT CONTINUED TO NEGOTIATE WITH THE EUROPEAN CONSORTIUM TO SEE WHETHER OTHER TERMS COULD BE STRUCK AT ONE POINT MR FERGUSON FLEW TO FRANCE TO CONTINUE THE TALKS APPARENTLY TO NO AVAIL GIVEN THE STATE OF THE AIRLINE INDUSTRY WHICH HAS BEEN WRACKED WITH ORDER CANCELLATIONS AMID RECESSION THE CONTINENTAL ORDER IS A PARTICULAR COUP FOR BOEING 9305120072 930512 SPROUSEREITZ EARNINGS FORECAST PORTLAND ORE SPROUSEREITZ STORES INC SAID IT EXPECTS ITS FISCAL FIRSTQUARTER OPERATING RESULTS TO BE HURT BY PRICE MARKDOWNS AT ITS RETAIL STORES THE VARIETY STORE RETAILER SAID THAT FOR THE QUARTER ENDED APRIL 27 SALES GAINS WERE MADE AT THE EXPENSE OF LOWER PRICES DUE TO A SOFT MARKET WHICH ALSO HURT THE COMPANY'S WORKING CAPITAL POSITION THE COMPANY DID NOT PROVIDE ANY SPECIFIC NUMBERS 9305120071 930512 NEWMONT MINING ADDITIONAL BLOCK SOLD BY GOLDSMITH BY WARREN GETLER AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LESS THAN THREE WEEKS AFTER SELLING A 10 STAKE IN NEWMONT MINING CORP TO FUND MANAGER GEORGE SOROS ANGLOFRENCH FINANCIER SIR JAMES GOLDSMITH AND AFFILIATED INVESTORS HAVE SOLD A FURTHER 95 STAKE IN NORTH AMERICA'S BIGGEST GOLDMINING COMPANY ACCORDING TO TRADERS IN LONDON THIS SECOND BLOCK OF NEWMONT STOCK AMOUNTING TO 65 MILLION SHARES HAS BEEN PLACED WITH OVERSEAS INSTITUTIONAL INVESTORS THROUGH A CONSORTIUM OF THREE INTERNATIONAL INVESTMENT BANKS WHO EARLIER BOUGHT THE SHARES AT 4450 EACH AND THEN SOLD THEM TO THE INSTITUTIONS AT 4550 EACH FOR AN INDICATED 29575 MILLION THE EARLIER SALE OF 68 MILLION NEWMONT SHARES TO MR SOROS BY COMPARISON FETCHED 3950 A SHARE NEWS OF THAT SALE AND COMMENTS BY SIR JAMES THAT HE HAD INVESTED MUCH OF THE PROCEEDS IN OPTIONS TO BUY GOLD HELPED PROPEL GOLD BULLION PRICES TO RECENT HIGHS APPROACHING 360 AN OUNCE FROM LEVELS AROUND 34750 PRIOR TO THE SALE YESTERDAY GOLD FOR JUNE DELIVERY CLOSED AT 35730 AN OUNCE UP 10 CENTS YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE NEWMONT MINING SHARES WHICH HAD COME UNDER HEAVY PRESSURE ON THE RUMOR OF THE SALE MONDAY CLOSED AT 4775 OFF 125 CENTS ON VOLUME OF 342700 SHARES MORGAN STANLEY INTERNATIONAL BARCLAYS DE ZOETE WEDD SECURITIES AND GORDON CAPITAL CORP A CANADIAN SECURITIES FIRM SAID IN AN ANNOUNCEMENT IN LONDON THAT THEY HAD PLACED THE FULL 65 MILLION SHARES OF THE LATEST SHARE SALE ON BEHALF OF SIR JAMES' INVESTMENT COMPANY GENERAL ORIENTAL INVESTMENTS LTD AND RIT CAPITAL PARTNERS PLC OWNED BY ROTHSCHILDS INVESTMENT TRUST IN LONDON THE SALE WAS OVERSUBSCRIBED BROKERS SAID WITH EUROPEAN FAR EASTERN AND CANADIAN BUYERS THE PREDOMINANT PURCHASERS BECAUSE OF SECURITIES AND EXCHANGE COMMISSION REGULATIONS THE SHARES WEREN'T OFFERED TO US INVESTORS GENERAL ORIENTAL AND RIT CAPITAL PARTNERS SAID SIR JAMES HAD ACQUIRED A 42 STAKE IN NEWMONT MINING IN OCTOBER 1990 THROUGH A 11 BILLION SWAP OF ASSETS WITH THE ANGLOAMERICAN CONGLOMERATE HANSON PLC AT THE TIME OF THE WIDELY PUBLICIZED SWAP WHICH INVOLVED THE SALE OF TIMBER INTERESTS OWNED BY SIR JAMES THE BILLIONAIRE INVESTOR SAID THAT HE WOULD SEEK TO REDUCE HIS NEWMONT HOLDINGS OVER TIME HE SAID HE DIDN'T WANT TO BE INVOLVED IN STRATEGIC PLANNING OR DAYTODAY MANAGEMENT OF A LARGE COMPANY SUCH AS NEWMONT THE UNCONFIRMED PRICE PAID FOR THAT INITIAL STAKE IN NEWMONT WAS 39 A SHARE MINING ANALYSTS SAID THE TWO RECENT SALES REDUCE SIR JAMES'S NEWMONT STAKE TO 195 OF THE COMPANY SIR JAMES WASN'T AVAILABLE FOR COMMENT BUT A SPOKESMAN SAID THE FINANCIER HAS GIVEN ASSURANCES THAT HE INTENDS REMAINING A LONGTERM SHAREHOLDER IN NEWMONT 9305120070 930512 CORRECTIONS & AMPLIFICATIONS PRESIDENT CLINTON SUGGESTED THE US CAN STOP A LOT OF THE TERRIBLE THINGS GOING ON IN BOSNIA WITHOUT WAR NOT WITHOUT AIR STRIKES AS WAS REPORTED IN AN ARTICLE YESTERDAY THE INACCURATE STATEMENT WAS BASED ON AN INCORRECT REPORT FROM THE PRESS POOL A SMALL GROUP OF REPORTERS WHO REPRESENT THE LARGER PRESS CORPS AT EVENTS WHERE ATTENDANCE IS LIMITED VORNADO REALTY TRUST THE SUCCESSOR TO VORNADO INC WILL PAY A SPECIAL DIVIDEND OF 336 A SHARE AS PREVIOUSLY ANNOUNCED TO DISTRIBUTE ACCUMULATED EARNINGS AND PROFITS AS DETERMINED FOR FEDERAL INCOME TAX PURPOSES THE DISTRIBUTION IS IN CONNECTION WITH VORNADO'S CONVERSION TO A REAL ESTATE INVESTMENT TRUST AN ARTICLE MONDAY SAID INCORRECTLY THAT THE DIVIDEND WAS TO DISTRIBUTE ACCUMULATED CASH 9305120069 930512 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 302 30 TO 59 DAYS 303 60 TO 119 DAYS 306 120 TO 179 DAYS 308 180 TO 239 DAYS 312 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 307 30 DAYS 308 60 DAYS 309 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 261 TWO MONTHS 263 THREE MONTHS 270 SIX MONTHS 291 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 306 THREE MONTHS 310 SIX MONTHS BANKERS ACCEPTANCES 297 30 DAYS 297 60 DAYS 297 90 DAYS 298 120 DAYS 3 150 DAYS 301 180 DAYS 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 7/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY MAY 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 714 60 DAYS 725 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 711 60 DAYS 721 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 268 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9305120068 930512 MARKETING & MEDIA ADVERTISING COMPUTER SCREEN SAVER BECOMES LATEST MEDIUM FOR THE MESSAGE BY KEVIN GOLDMAN YOU'RE TAPPING AWAY AT YOUR COMPUTER TRYING HARD TO CONCENTRATE ON YOUR TASK SUDDENLY THE SCREEN GOES BLANK AND THE EVEREADY ENERGIZER BUNNY THAT UBIQUITOUS AND INCREASINGLY ANNOYING ICON MAKES AN APPEARANCE ONE OF THE LAST BASTIONS OF PROTECTION AGAINST AD CLUTTER IS FALLING THE COMPUTER SCREEN IS NOW THE TARGET FOR SEVERAL COMPANIES PUSHING ADVERTISING ON SOCALLED SCREEN SAVERS PROGRAMS THAT COMPUTER USERS BUY TO PREVENT PERMANENT IMAGES FROM BURNING INTO A PERSONAL COMPUTER'S PHOSPHORESCENT SCREEN SCREEN SAVERS ARE NOTHING NEW THOUGH THEY ARE USUALLY GENERIC GEOMETRIC SHAPES SPINNING ACROSS AN INACTIVE SCREEN BUT MARKETERS SENSING A GIGANTIC UNTAPPED MARKET THERE ARE MORE THAN 100 MILLION PERSONAL COMPUTERS DOMESTICALLY ARE RUSHING TO PITCH COMPANIES SUCH AS NIKE TO GET IN ON A FAD THAT COULD EITHER BE A MAJOR BREAKTHOUGH OR THE MOST ANNOYING ADVERTISING MEDIUM YET IF BIG ADVERTISERS SIGN ON THE COMPUTER SCREEN COULD SOON BE INUNDATED WITH ADS THAT INCLUDE SWEEPSTAKES AND OTHER CONTESTS AND EVEN SCHEDULES FROM SPORTS TEAMS SUCH AS THE LOS ANGELES DODGERS ONE OF THE ORGANIZATIONS CONSIDERING THE NEW MEDIUM EACH ADVERTISER COULD SPONSOR A SCREEN SAVER PROGRAM PAYING A FEE TO THE MARKETER OF THE SOFTWARE MUCH THE WAY ADVERTISERS NOW HAVE COMMERCIALS ON VIDEOCASSETTES IN THE CASE OF THE ENERGIZER BUNNY BATTERY MAKER EVEREADY DOESN'T HAVE TO PAY FOR THE EXPOSURE BECAUSE THE SCREEN SAVER MARKETER WANTED TO SPUR INTEREST IN ITS PROGRAM IN ORDER TO HAVE A COMMERCIALLY VIABLE PRODUCT WE HAD TO MAKE A CHARACTER THAT WAS EASILY RECOGNIZED SAYS BRUCE CLAY VICE PRESIDENT OF SALES AT PC DYNAMICS BASED IN WESTLAKE VILLAGE CALIF THE SCREEN SAVER PROGRAM SELLS AT RETAIL STORES FOR 2495 SLIGHTLY LESS THAN SIMILAR PROGRAMS AND SINCE IT WENT ON THE MARKET LAST DECEMBER MR CLAY SAYS THE COMPANY HAS SOLD MORE THAN 100000 UNITS PERHAPS THE MOST TROUBLESOME AND BAFFLING ELEMENT TO THE BUNNY PROGRAM IS A FEATURE TITLED SPECIAL APPEARANCE WHEREAS A SCREEN SAVER WILL KICK IN USUALLY AFTER THE COMPUTER IS IDLE FOR SEVERAL MINUTES THE SPECIAL APPEARANCE WILL HAVE THE FUZZY CREATURE POP ON UNANNOUNCED AT ANY MOMENT TO GET RID OF IT THE USER SIMPLY PRESSES A BUTTON WHY HAVE SUCH A POTENTIALLY IRRITATING INTERRUPTION IN THE FIRST PLACE WHY NOT STICK WITH NONCOMMERCIAL SCREEN SAVERS PEOPLE ARE LOOKING FOR WAYS TO PERSONALIZE AND HAVE FUN WITH THEIR COMPUTERS SAYS MR CLAY WHOSE COMPANY EVEN PAYS EVEREADY A LICENSE FEE FOR THE USE OF THE BUNNY A SPOKESMAN FOR EVEREADY A UNIT OF RALSTON PURINA SAYS IT IS TOO SOON TO DETERMINE WHETHER THE PROGRAM IS SUCCESSFUL AS AN ADVERTISING AND MARKETING TOOL HOME RUN SOFTWARE PRODUCTIONS BASED IN CLAREMONT CALIF IS TRYING TO WOO SUCH COMPANIES AS NIKE AND INTERNATIONAL BUSINESS MACHINES AMONG OTHERS IT HAS PUT TOGETHER A COLOR PROTOTYPE ADVERTISEMENT FOR NIKE ATHLETIC SHOES THE PROGRAM WHICH LASTS ONLY ABOUT 20 SECONDS BUT WHICH IS REPEATED AD INFINITUM BEGINS WITH A PAIR OF NIKE SNEAKERS WALKING UP ON THE COMPUTER SCREEN THE SCREEN GOES BLANK AND A BASKETBALL COURT APPEARS WITH THE NIKE LOGO ON A SCOREBOARD A PAIR OF NIKES COMES ACROSS THE SCREEN AND A BASKET IS MADE THE PROTOTYPE PROGRAM WAS CREATED BY HOME RUN AND SENT TO NIKE'S ADVERTISING AGENCY WIEDEN & KENNEDY BASED IN PORTLAND ORE NIKE SAYS IT HASN'T HELD TALKS WITH HOME RUN BUT BECAME AWARE OF HOME RUN'S CONTACT WITH ITS AD AGENCY HOME RUN DEVELOPS THE SOFTWARE PROGRAM AND IN THE CASE OF THE SCREEN SAVER IS WORKING WITH MINNESOTA MINING & MANUFACTURING WHICH MAKES COMPUTER DISKETTES MINNESOTA MINING BASED IN ST PAUL MINN IS PLANNING TO INCLUDE A FREE SCREEN SAVER PROGRAM IN PACKAGES OF 10 DISKETTES THE INDIVIDUAL THEN PROGRAMS HIS COMPUTER WITH THE SCREEN SAVER AN ADVERTISER AND 3M WOULD PAY A FEE TO HOME RUN TO PRODUCE THE PRODUCT WHICH INCLUDES THE ANIMATION AND GRAPHICS YET ANOTHER COMPANY MODEUM MEDIA BASED IN WESTPORT CONN SAYS IT IS CLOSE TO AN AGREEMENT WITH A PACKAGED GOODS COMPANY FOR A SCREEN SAVER TO BE USED FOR A CONTEST DOUG AHLERS MODEUM'S GENERAL PARTNER DECLINES TO IDENTIFY THE COMPANY BUT SAYS THE SCREEN SAVER WILL OCCASIONALLY POP UP CLUES TO A RIDDLE COMPUTER USERS COULD THEN CALL AN 800 NUMBER TO CLAIM A PRIZE EVEN MR AHLERS IS CAUTIOUS ABOUT THE NEW ADVERTISING DEVICE YOU HAVE TO WALK A FINE LINE BETWEEN BEING INTRUSIVE AND ANNOYING AND SERVING A USEFUL PURPOSE HE SAYS ADVERTISING ON SCREEN SAVERS CAN BE EASILY ANNOYING YOU'RE ADVERTISING AT THE WORKPLACE WHICH ISN'T SO RELAXING IN THE FIRST PLACE AD AGENCIES AGREE IT CAN BE ANNOYING AS HELL SAYS BETH ROCKWOOD AN EXECUTIVE VICE PRESIDENT AT YOUNG & RUBICAM IN CHARGE OF MEDIA PLANNING AND NEW BUSINESS BUT IF DONE WELL SHE SAYS SCREEN SAVERS COULD BE AN EFFECTIVE TOOL FOR SELLING MERCHANDISE SAYS MS ROCKWOOD WE'RE WORKING WITH SOME CLIENTS NOW INTERESTED ABOUT PUTTING INFORMATION SUCH AS NEWS ON A SCREEN SAVER WHICH WOULD INCLUDE ADVERTISING THE ULTIMATE QUESTION IS WHETHER SCREEN SAVING ADVERTISING WILL ENDURE RIGHT NOW IT'S A GIMMICK SAYS MR AHLERS IT'S FUN TO SEE THE BUNNY THREE OR FOUR TIMES HE SAYS BUT IT ETS TIRED AFTER A WHILE AND THE USER MAY SIMPLY DISABLE THE PROGRAM AND MOVE ONTO ANOTHER SCREEN SAVER OF COURSE BY THEN IT WOULD HAVE SERVED ITS PURPOSE OF GETTING THE ADVERTISER'S MESSAGE ACROSS WHICH IS ALL THE ADVERTISER WANTED IN THE FIRST PLACE LAWSUIT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION FILED A FEDERAL AGEDISCRIMINATION SUIT AGAINST OMNICOM GROUP'S DOREMUS & CO ALLEGING THAT THE AGENCY FIRED A SENIOR VICE PRESIDENT ANDREW QUINN BECAUSE OF HIS AGE 58 CARL J ANDERSON DOREMUS'S CHAIRMAN DECLINED TO COMMENT ON THE MATTER MR QUINN COULDN'T BE REACHED FOR COMMENT THE LAWSUIT SEEKS BACK PAY AND DAMAGES OUT OF GAS TRUCKER TV THE SATELLITE NETWORK AIMED AT TRUCK DRIVERS IN ROADSIDE DINERS HAS SHUT DOWN OPERATIONS SAID STEPHEN COHEN THE OPERATION'S PRESIDENT WHILE MR COHEN SEEKS ADDITIONAL FINANCING THE NETWORK A UNIT OF AMERICAN TRANSPORTATION TELEVISION NETWORK WENT OFF THE AIR IN LATE MARCH NOW IT HAS DISMISSED ITS 14 REMAINING EMPLOYEES MR COHEN SAID THE OPERATION WAS HAVING TROUBLE SIGNING UP ADVERTISERS BECAUSE ONLY 43 TRUCK STOPS HAD SIGNED ON TO CARRY THE PROGRAMMING ADVERTISERS HAD INCLUDED AMERICAN TELEPHONE & TELEGRAPH SHELL OIL AND THE NATIONAL RIFLE ASSOCIATION MR COHEN SAID 9305120067 930512 LEISURE & ARTS ARCHITECTURE NEW FROM THE DECONSTRUCTIVIST GURU BY EVE M KAHN COLUMBUS OHIO DON'T BE AFRAID OF PETER EISENMAN DON'T BE TRUST ME RELAX THE FEARFUL DECONSTRUCTIVIST GURU'S NEW CONVENTION CENTER HERE NOT ONLY PLAYFULLY DRAWS TOGETHER THE SPLAYED STRANDS OF DESIGN OVER THE PAST CENTURY BUT ALSO DIGNIFIES ITS EDGEOFDOWNTOWN CONTEXT FROM THE ADJACENT WAREHOUSES TO THE DISTANT BARNYARDS AND MOREOVER CAN INDUCE A DEEP SENSE OF AMAZEMENT AND POSSIBLY BLISS EVEN IF YOU DON'T UNDERSTAND A WORD OF DERRIDA I'VE HEARD MR EISENMAN'S GROUPIES CALL HIM THE GREATEST LIVING ARCHITECT AND I THINK I MAY BELIEVE THEM SOMEDAY YES HE HAS ONLY BUILT A HANDFUL OF HOUSES AND ONE OTHER MAJOR PUBLIC BUILDING THE WEXNER CENTER FOR THE VISUAL ARTS ALSO IN COLUMBUS WHERE COLUMNS DANGLE AND ANGLED CEILINGS SOAR ABOVE DEADEND STAIRS AND MISMATCHEDGLASS WALLS BUT THE WILL THE CONFIDENCE THE CONSISTENCY THE RICHNESS EVEN THE LIFE AFFIRMATION IN THESE BUILDINGS DESPITE AN IMPENETRABLE PHILOSOPHICAL BACKGROUND OF SIGNIFIERS AND SIGNIFIEDS MAKES ME THINK THAT MR EISENMAN HAS SET THE TENOR OF THE FUTURE I JUST FEAR WHAT HE HAS UNLEASHED WHAT WILL COME AFTER WHAT GROTESQUERIES THESE POWERFUL NEW MODES WILL PRODUCE IN UNSKILLED HANDS FOR THE MOMENT THOUGH THE COLUMBUS CONVENTION CENTER LOOKS LIKE NOTHING YOU HAVE EVER SEEN IMAGINE 10 SOFT TRAINS SIDE BY SIDE NOW IMAGINE THEY HAVE ALL SIDLED INTO EACH OTHER ALL BENDING AND CURVING A LITTLE AND OVERLAPPING TOO SO THAT SOME OF THEIR RIDGES HAVE RISEN AND OTHERS SUNK AND IMAGINE THEM IN SWEETART COLORS PEACH BUFF MINT AND SKY BLUE NOW IMAGINE THE SIDES OF THE TRAINS ARE PLAIN MAJESTICALLY UNINTERRUPTED SHEETS OF HORIZONTALLY RIBBED STEEL ONE SUCH SHEET OVERLOOKS THE MAIN PARKING LOT THE OTHER CLINGS TO A NEXTDOOR HYATT A BLACKGLASS BILLBOARD ON CONCRETE STILTS THAT FLAUNTS EVERYTHING THAT WENT WRONG IN MODERNISM ALL 10 TRAINS END IN LOADING DOCKS WITH THE ROOFS SLIGHTLY SNUBNOSED OVER THE PALE STUCCO DOCK WALLS AND WITH SOME TRAINS PUSHED FORWARD OTHERS LAGGING A SCORE OF FURTHER METAPHORS COME TO MIND A LITTER OF PIGLETS TRUCKS RUSHING TO A FAVORITE DINER THE ROLLICKING DESIGN JOLTS YOU INTO AN AWARENESS OF THE UNTAPPED POTENTIAL FOR HUMOR AND VISION IN THE HUMBLEST BUILDING MATERIALS WHY CAN'T ALL STRINGS OF RIBBEDSTEELEDGED LOADING DOCKS OR FARM SHEDS COME BARRELING TOGETHER LIKE THIS AND WHY DOES THE MANYSTORIED RIBBEDSTEEL BOX ENIGMATICALLY LABELED ROSS SITTING STONILY JUST ACROSS THE INTERSTATE FROM THE CONVENTION CENTER HAVE TO BE SO MUTE THE TRAINS' OTHER ENDS ADJOIN A HEAVILY TRAFFICKED STREET WITH A VICTORIAN COMMERCIAL STRIP ALONG THE THOROUGHFARE'S OPPOSITE FLANK MR EISENMAN'S VIRTUOSITY THERE ALTERNATES BETWEEN ALMOST CALMING EXPANSES OF WINDOWS AND DOORS WITH HIGGLEDYPIGGLEDY MUNTINS AND OFFANGLE EXPANSES OF CONCRETECUBE PAIRS BRICKS AND METAL GRIDS THE CUBES SHRINK AND SWELL IN AREA AND HEIGHT BUT ALWAYS PUNCH OUT THEY'RE LIKE PERFECT TEETH OR BOXING GLOVES DEMANDING UNWAVERING ATTENTION AND THEY ALSO EVOKE THE RIMS OF EVERY ABOVEGROUND PARKING GARAGE BUILT THROUGH THE PAST 20 YEARS PUT THROUGH A FANTASTICAL BLENDER BENEATH THE CUBES BRICK SWATHS BREAK APART IN GREAT NARROW TRIANGLES TO REVEAL METAL UNDERNEATH OR FURTHER LAYERS OF CONCRETE ICE OR LAVA FLOES SEPARATING TO EXPOSE TERRORS BELOW HAVE NEVER BEEN SO ACCURATELY ABSTRACTED INTO ARCHITECTURE A FAN DANCER ALSO COMES TO MIND A TAUNTING ONE WHO LETS YOU PEEK PAST HER FANS AND UNDER HER LEOTARD TO SPY ONLY MORE FEATHERS MR EISENMAN IS PAYING A BIZARRE TRIBUTE WITH PERMANENT MATERIALS TO THE EPHEMERALITY OF EVERYTHING HE IS ALSO LAUGHING UPROARIOUSLY AT THE MODERNIST BELIEF IN EXTERIORS EXPRESSING INTERIOR TECHNOLOGY AND FUNCTION AND MEANWHILE HE IS EVEN ENSURING WITH RHYTHM AND 30FOOT HEIGHT THAT THE THIRDRATE VICTORIAN BUILDINGS ACROSS THE STREET FEEL FAIRLY COMFORTABLE THE FLOOR PLAN TOO IS ALMOST NOSTALGIC IT IMITATES A VINTAGE RAILROAD STATION TWO UNREMARKABLE CONVENTION HALLS FILL THE REAR WHERE TRAIN YARDS WOULD STAND BEHIND THE DELIRIOUS STREET WALL RUNS A SUNLIGHTWASHED PUBLIC HALLWAY AND GATHERING SPACE A PLEASANT CHANCE TO CONNECT WITH THE OUTDOORS AND IDEALLY A PRECEDENT FOR CONVENTION BUILDINGS MOST OF WHICH SEAL OUT THE REAL WORLD ONESTORY PLASTER SQUARES SAG OVER THE CONVENTIONHALL DOORS AS IF THE WORKMEN SWAYED WITH RESTRAINED JOY IN MIDFASTENING FROM THE CORRIDOR JUT A BALLROOM WHOSE DRAMA COMES MAINLY FROM BEAMS THAT DISAPPEAR INTO THE CEILING A SHTICK REPEATED FROM THE WEXNER CENTER THAT IS STARTING TO TIRE IT DIDN'T MAKE ME FEEL NEARLY AS WOOZY AS I HOPED AND THREE MEETINGROOM CORRIDORS WITH EXPOSED OFFKILTER COLUMNS AND WITH CROSSBEAMS THAT PERFORM KNEEBENDS OVER THE ESCALATORS GUTLESS MEETING PLANNERS UNFORTUNATELY FORCED MR EISENMAN TO KEEP MEETINGROOM WALL GRIDS PERPENDICULAR TO THE FLOOR AND UNDER YOUR FEET FROM THE ELEVATORS TO THE PAY PHONES THE CARPET SHIFTS HUE AND GRID DIRECTION EVERY TIME SOMETHING ARCHITECTURALLY NOTEWORTHY HAPPENS OVERHEAD MY ONLY REGRET THE STREET DOORS DO NOT OPEN YOU'RE EXPECTED TO ENTER VIA THE PARKINGLOT DOORS OR THE HYATT'S SEEDY LOBBY SO MR EISENMAN'S WILDLY ARTICULATED HANDIWORK ATTRACTS PEDESTRIANS TO OTHER DOORWAYS AND THEN TAPEDUP PAPER SIGNS SHOO THEM AWAY SO THE STREET WITH ITS VICTORIAN BUILDINGS ROTTING AND UNRENTED COULD END UP QUITE DEPOPULATED AND MENACING BUT WHAT A SHAME IT WOULD BE IF ONLY BRAVE CURIOSITY SEEKERS EVER GOT CLOSE TO THIS CUTTINGEDGE FACADE 9305120066 930512 ECONOMY FDIC SOFTENS PROPOSED AUDIT RULES FOR BANKS AND DRAWS FIRE FROM GAO BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP SIGNIFICANTLY SCALED BACK PROPOSED AUDIT REGULATIONS FOR BANKS AND THRIFTS DRAWING GENERAL ACCOUNTING OFFICE CRITICISM FOR DILUTING THE EFFECTIVENESS OF A 1991 BANKING LAW SEPARATELY THE FDIC BOARD OF DIRECTORS ADOPTED A RULE THAT REDUCES TO 100000 FROM A MAXIMUM OF 400000 THE FEDERAL INSURANCE COVERAGE AN INDIVIDUAL DEPOSITOR CAN RECEIVE FOR SELFDIRECTED RETIREMENT ACCOUNTS IN ONE BANK THE RULE WHICH TAKES EFFECT DEC 19 APPLIES ONLY TO CERTAIN RETIREMENT PLANS AND DOESN'T AFFECT COVERAGE ON OTHER ACCOUNTS THE AUDIT AND DEPOSIT RULES WERE REQUIRED BY A 1991 LAW THAT TIGHTENED BANK REGULATION AND LIMITED DEPOSIT INSURANCE COVERAGE IN AN EFFORT TO REDUCE THE NUMBER AND COST OF BANK FAILURES BANKERS AND REGULATORS COMPLAIN HOWEVER THAT THE LAW IMPOSES COSTLY REQUIREMENTS THAT HAVE DISCOURAGED BANKS FROM MAKING LOANS THE REVISED AUDIT REGULATIONS ARE THE LATEST EFFORT BY REGULATORS TO KEEP THE BURDEN OF RULES AS LIGHT AS POSSIBLE UNDER THE 1991 LAW BANKS AND THRIFTS MUST HAVE ANNUAL INDEPENDENT AUDITS THAT REVIEW THEIR FINANCIAL CONDITION INTERNAL MANAGEMENT CONTROLS AND COMPLIANCE WITH BANKING LAWS AND REGULATIONS THE LAW EXEMPTED BANKS WITH ASSETS OF LESS THAN 150 MILLION BUT GAVE THE FDIC AUTHORITY TO SET A HIGHER THRESHOLD THE FDIC SAID THE RULES WILL APPLY TO ALL BANKS AND THRIFTS WITH ASSETS OF MORE THAN 500 MILLION A GROUP THAT INCLUDES ABOUT 1000 OUT OF NEARLY 14000 FEDERALLY INSURED BANKS AND THRIFTS THESE 1000 INSTITUTIONS HOWEVER HOLD ABOUT 75 OF THE BANKING SYSTEM'S TOTAL ASSETS THE AGENCY SAID 96 OF THE INSTITUTIONS IN THIS GROUP ALREADY HAVE ANNUAL INDEPENDENT AUDITS OF THEIR FINANCIAL STATEMENTS AND 90 ALREADY HAVE AUDIT COMMITTEES ON THEIR BOARDS OF DIRECTORS THE NEW RULE REQUIRES THAT THE AUDIT COMMITTEES BE COMPOSED OF BOARD MEMBERS WHO AREN'T PART OF THE BANK'S MANAGEMENT THE FDIC SAID ABOUT 240 BANKS AND THRIFTS WITH ASSETS OF MORE THAN 3 BILLION WILL FACE STIFFER REQUIREMENTS GOVERNING THE COMPOSITION OF THEIR AUDIT COMMITTEES THE AUDIT STANDARDS HAVE EMERGED AS A MICROCOSM OF A POLITICAL BATTLE TO SHAPE BANK REGULATIONS TO REDUCE THE BURDEN OF NEW REGULATION THE FDIC SIGNIFICANTLY TRIMMED THE SCOPE OF THE AUDIT RULES IT PROPOSED IN SEPTEMBER IT ALSO ISSUED MANY OF THE DEFINITIONS INSTRUCTIONS AND EXPLANATIONS AS GUIDELINES RATHER THAN FORMAL RULES BUT THE GAO WHICH CAMPAIGNED HARD FOR TOUGH BANK RULES WHEN CONGRESS WAS WRITING THE 1991 LAW CALLED THE CHANGES A SERIOUS WEAKENING OF THE ACT'S REFORMS THAT WERE INTENDED TO PREVENT A RECURRENCE OF THE BREAKDOWNS IN INTERNAL CONTROLS AND FLAWED SYSTEMS OF CORPORATE GOVERNANCE THAT DIRECTLY CONTRIBUTED TO THE SAVINGS AND LOAN CRISIS AND BANK FAILURES SOME MEMBERS OF CONGRESS AND ACADEMICS ALSO ACCUSE THE REGULATORS OF WATERING DOWN THE RULES THE HEALTH OF THE BANKING INDUSTRY HAS IMPROVED MARKEDLY SINCE CONGRESS PASSED THE 1991 BANKING LAW LAST YEAR BANKS ENJOYED THEIR MOST PROFITABLE YEAR IN HISTORY AS BANKS AND THRIFTS HAVE INCREASED THEIR CAPITAL AND BUILT THEIR RESERVES AGAINST BAD LOANS REGULATORS HAVE BECOME MORE AGGRESSIVE IN THEIR EFFORTS TO MAKE DOZENS OF REQUIRED REGULATIONS AS FLEXIBLE AS POSSIBLE THE AGENCIES HAVE BEEN TRYING TO MEET THE INTENT OF THE CONGRESS WHILE MINIMIZING THE BURDEN ON BANKS AND THE DELETERIOUS EFFECTS ON THE SUPPLY OF CREDIT FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN EXPLAINED IN A SPEECH LAST WEEK EUGENE LUDWIG THE COMPTROLLER OF THE CURRENCY AND THE ONLY BANK REGULATOR PRESIDENT CLINTON HAS APPOINTED SO FAR IS PLAYING A LEADING ROLE IN LOOKING FOR WAYS TO REDUCE THE BURDEN OF BANK REGULATION WITHOUT COMPROMISING SAFETY AND SOUNDNESS RULES OR PROHIBITIONS AGAINST DISCRIMINATORY LENDING FOR MANY BANK CUSTOMERS THE MOST SIGNIFICANT CHANGES IN THE 1991 LAW CONCERNED DEPOSIT INSURANCE IT REDUCED THE NUMBER OF INSURED RETIREMENT ACCOUNTS A DEPOSITOR CAN HAVE IN ONE BANK CURRENTLY A PERSON CAN HAVE AS MUCH AS 100000 OF FDIC INSURANCE ON EACH OF FOUR SELFDIRECTED RETIREMENT ACCOUNTS IN ONE BANK AN INDIVIDUAL RETIREMENT ACCOUNT A KEOGH PLAN FOR BUSINESS OWNERS A 457 PLAN FOR EMPLOYEES OF STATE AND LOCAL GOVERNMENTS AND NONPROFIT ORGANIZATIONS AND A DEFINED CONTRIBUTION PLAN UNDER THE NEW RULE AGGREGATE COVERAGE CAN'T EXCEED 100000 IN ONE BANK THOUGH THE REGULATION TAKES EFFECT DEC 19 COVERAGE ON MULTIPLE RETIREMENT ACCOUNTS WON'T END THEN EXISTING ACCOUNTS WILL CONTINUE TO BE FEDERALLY INSURED UNTIL THEY EXPIRE MANY RETIREMENT ACCOUNTS ARE HELD IN THE FORM OF CERTIFICATES OF DEPOSIT WHICH PAY A SET RATE OF INTEREST OVER A MULTIYEAR TERM BANKS MUST NOTIFY CUSTOMERS WITH RETIREMENT ACCOUNTS OF THE CHANGE IN LAW IN ADDITION THE FDIC IS PREPARING PAMPHLETS VIDEO TAPES A NEWSLETTER AND TRAINING PROGRAMS TO PUBLICIZE THE CHANGES THE MOST IMPORTANT CHANGE FOR CUSTOMERS OF BANKS THAT FAIL IS THAT THE FDIC NO LONGER PROTECTS THE FULL AMOUNT OF ACCOUNTS ABOVE 100000 AS IT ROUTINELY DID IN THE PAST THOUSANDS OF DEPOSITORS LOST SOME OF THEIR MONEY BEYOND THE 100000 CEILING WHEN THEIR BANKS FAILED THIS YEAR AND LAST YEAR ALAN NAISULER A DEPOSITOR WHO LOST 14000 WHEN A MASSACHUSETTS BANK FAILED LAST YEAR CONTENDS THAT THE FDIC AND BANKS HAVE BEEN SLOW TO INFORM DEPOSITORS OF THE INCREASED RISK THEY FACE BECAUSE OF THE 1991 LAW 9305120065 930512 LAW DUPONT CHIEF CALLED TO PRETRIAL HEARING OF FOUR PESTICIDE SUITS A FEDERAL JUDGE IN COLUMBUS GEORGIA DIRECTED DUPONT CO CHAIRMAN AND CHIEF EXECUTIVE OFFICER EDGAR S WOOLARD JR TO APPEAR IN HIS COURTROOM FRIDAY AT A PRETRIAL HEARING REGARDING FOUR SUITS THAT ALLEGE CROP DAMAGE CAUSED BY DUPONT'S BENLATE FUNGICIDE US DISTRICT JUDGE J ROBERT ELLIOTT TOOK THE RARE STEP BECAUSE HE SAID HE WANTS THE DUPONT EXECUTIVE TO EXPLAIN WHY THE CHEMICAL COMPANY IN THE JUDGE'S OPINION HAS OBSTRUCTED THE PRETRIAL GATHERING OF EVIDENCE IN THE FOUR CASES BEFORE HIS COURT LAST MONTH THE JUDGE FINED DUPONT 500000 FOR WHAT HE SAID WAS A DELIBERATE EFFORT TO DELAY PRETRIAL DISCOVERY THE JUDGE SAID THE FINE COULD BE INCREASED OR DECREASED DEPENDING ON MR WOOLARD'S COMMENTS AT THE HEARING THE JUDGE HAS HELD SIX HEARINGS TO TRY UNSUCCESSFULLY SO FAR TO GET DUPONT'S COOPERATION WITH THE DISCOVERY PROCESS ACCORDING TO NEAL POPE AN ATLANTA ATTORNEY REPRESENTING THE FOUR PLAINTIFFS DUPONT SAID THAT IT RESPECTFULLY DISAGREES WITH THE COURT'S FINDING THAT THE COMPANY OBSTRUCTED PLAINTIFF'S DISCOVERY DUPONT SAID IT IS CONFIDENT THAT ITS PRODUCT WILL BE VINDICATED AT TRIAL MR WOOLARD'S SCHEDULED APPEARANCE IS THE LATEST TWIST IN THE LARGEST CASE EVER OF ALLEGED PESTICIDE DAMAGE DUPONT RECALLED THE WIDELY USED FUNGICIDE IN MARCH 1991 SAYING THAT IT MAY HAVE CAUSED CROP AND PLANT DAMAGE THE COMPANY PAID 500 MILLION IN DAMAGES TO FARMERS BEFORE HALTING PAYMENTS LAST NOVEMBER SAYING IT HAD DETERMINED BENLATE DIDN'T CAUSE THE DAMAGE SEVERAL HUNDRED SUITS ALLEGING CROP DAMAGE CAUSED BY BENLATE ARE PENDING 9305120064 930512 POLITICS & POLICY LOBBYISTS ACCELERATE ATTACKS ON CLINTON PROGRAM AS THEY DISCERN WEAKNESS AT THE WHITE HOUSE BY MICHAEL K FRISBY AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S RECENT DEFEATS AND COMPROMISES ARE EMBOLDENING WASHINGTON SPECIALINTEREST GROUPS TO STEP UP ATTACKS ON HIS LEGISLATIVE PROGRAM FROM K STREET TO CAPITOL HILL THE TALK AMONG LOBBYISTS AND LAWMAKERS IS THAT THE WHITE HOUSE APPEARS TO BE WAVERING AND WEAK EVEN SOME OFFICIALS INSIDE THE ADMINISTRATION WORRY THAT THE PRESIDENT IS TOO QUICK TO MAKE CONCESSIONS TO CONGRESS AND BUSINESS WITHOUT WINNING ANYTHING IN RETURN THEY NOTE THAT LAST WEEK CHAIRMAN DAN ROSTENKOWSKI D ILL OF THE HOUSE WAYS AND MEANS COMMITTEE BYPASSED TREASURY SECRETARY LLOYD BENTSEN WHO IS SEEN AS RELUCTANT TO AGREE TO A QUICK COMPROMISE AND WENT STRAIGHT TO THE PRESIDENT TO TRY TO CUT A DEAL ON THE TAX BILL THE ADMINISTRATION IS CURRENTLY IN A POSITION OF RETREAT AND REPAIR SAID SEN FRANK LAUTENBERG THIS IS CHINESE WATER TORTURE AND IT CAN'T GO ON FOR VERY LONG WITHOUT DESTROYING THE OPPORTUNITIES THAT THE PRESIDENT HAS THE NEW JERSEY DEMOCRAT ADDS AFTER LEARNING THAT THE PRESIDENT CUT A KEY ENERGY TAX COMPROMISE WITH A JUNIOR MEMBER OF THE WAYS AND MEANS COMMITTEE LOBBYISTS WERE JOKING THAT ANY INTEREST GROUP WITH A FEW DEMOCRATS ON ITS SIDE COULD GET AN EXCLUSION FROM THE TAX AND IN THE SENATE OILSTATE DEMOCRATS SMELLING IMPROVED CHANCES OF DEFEATING OR GUTTING THE ENERGY TAX YESTERDAY STEPPED UP THEIR CRITICISM SEN JOHN BREAUX A DEMOCRAT FROM LOUISIANA WHO IS NORMALLY A CLINTON ALLY ON THE FINANCE COMMITTEE COMPLAINED THAT THE PROPOSAL WOULD CREATE A MASSIVE NEW BUREAUCRACY OF BTU POLICE AND SAID THE PLAN SHOULD BE DISCARDED IN FAVOR OF A SIMPLE INCREASE IN THE GASOLINE TAX OF 10 CENTS A GALLON MR CLINTON'S PERCEIVED PROBLEMS MAY ALSO BE SPILLING OVER INTO OTHER AREAS THE PRESIDENT'S FRIEND LITTLE ROCK LAWYER WEBB HUBBELL FACES INCREASED DIFFICULTY IN WINNING SENATE APPROVAL OF HIS NOMINATION AS ASSOCIATE ATTORNEY GENERAL DUE TO HIS MEMBERSHIP IN AN ALLWHITE COUNTRY CLUB AND LANI GUINIER NOMINATED AS ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS IS UNDER ATTACK FOR HER LIBERAL VIEWS TOM JIPPING LEGISLATIVE AFFAIRS ANALYST FOR COALITION FOR AMERICA A GROUP OF CONSERVATIVE ACTIVISTS SAYS MR CLINTON'S PROBLEMS HAVE BEEN A KEY FACTOR IN THE GROUP'S DECISION TO TRY TO DEFEAT THE TWO NOMINEES STAUNCH CLINTON ALLIES SAY CRITICS ARE EXAGGERATING THE SIGNIFICANCE OF THE ADMINISTRATION'S DEFEAT ON THE STIMULUS PACKAGE AND OF OTHER RECENT COMPROMISES THE PRESS IS IN THE MOST NEGATIVE MOOD I'VE EVER SEEN SAID REP BARNEY FRANK D MASS WHO SAYS MR CLINTON'S FIRST YEAR WILL YET BECOME THE MOST PRODUCTIVE OF ANY CHIEF EXECUTIVE'S SINCE LYNDON JOHNSON BY ANY REALISTIC STANDARD HE'S DOING QUITE WELL OUTSIDE CHICAGO MR CLINTON DEFENDED HIS ACTIONS ARGUING THAT THE MOST IMPORTANT THING WAS TO KEEP MOVING IN THE RIGHT DIRECTION I'M NOT GOING TO WIN EVERY ISSUE I'M FIGHTING HE SAID BUT I BELIEVE THAT WE HAVE A REAL CHANCE TO MAKE THIS GOVERNMENT WORK AND I'M BASICALLY QUITE OPTIMISTIC ABOUT IT MOREOVER A SENIOR WHITE HOUSE OFFICIAL SAID IT WAS EASY TO OVERDO THE TALK OF COMPROMISING TOO MUCH POINTING OUT THAT THE CHANGES IN THE ENERGY BILL SO FAR AMOUNT TO A FEW HUNDRED MILLION DOLLARS IN A PROPOSAL THAT RAISES ABOUT 70 BILLION OVER FIVE YEARS WHITE HOUSE OFFICIALS NOTE CORRECTLY THAT PRESIDENT REAGAN'S 1981 TAX PLAN UNDERWENT FAR GREATER CHANGES BEFORE IT WAS ENACTED AND SAY MR CLINTON SHOULDN'T BE TAKEN TO TASK FOR HAVING HIS PLAN ALTERED BY CONGRESS STILL THE PERCEPTION IS GROWING IN WASHINGTON THAT THE WHITE HOUSE CAN BE MANHANDLED IN PART THAT REFLECTS THE FACT THAT MR REAGAN SET ONLY BROAD PRINCIPLES FOR HIS ECONOMIC PROGRAM AND ALLOWED HIS AIDES TO NEGOTIATE THE DETAILS AS A RESULT CHANGES IN THOSE DETAILS BY CONGRESS WEREN'T NECESSARILY SEEN AS A DEFEAT FOR THE PRESIDENT IN MR CLINTON'S CASE HE HAS STAYED SO INVOLVED IN THE DETAILS AND THE DEALMAKING THAT EACH CONCESSION IS SEEN AS HIS OWN A SIGN OF THE SHIFTING POWER DYNAMIC WAS SEEN THIS WEEK WHEN THE US CHAMBER OF COMMERCE SENT OUT RELEASES BLASTING THE PRESIDENT'S ENERGY TAX AS WELL AS PROPOSALS TO CHANGE THE TREATMENT OF ROYALTY INCOME AND RAISE THE CORPORATE TAX RATE UNTIL RECENTLY THE BUSINESS GROUP HAD BEEN CAREFULLY HOLDING ITS FIRE IN AN ATTEMPT TO COURT THE NEW ADMINISTRATION LIKEWISE THE AMERICAN TRUCKING ASSOCIATIONS WHICH INITIALLY PROMISED TO LAY LOW IN THE ENERGYTAX FIGHT NOW IS THREATENING TO JOIN THOSE TRYING TO KILL THE ENERGY TAX UNLESS IT WINS FURTHER CONCESSIONS IT'S FAIR TO SAY SAYS THOMAS DONOHUE THE TRADE GROUP'S PRESIDENT THAT THE VIBES FROM THE ADMINISTRATION AND THE HILL CHANGE WITH THE CLOCK WOULDBE ALLIES SAY THEY ARE PUZZLED BY MR CLINTON'S TACTICS THE ADMINISTRATION HAS GOT TO LEARN TO PLAY POLITICS BETTER SAYS EDWIN ROTHSCHILD THE ENERGY POLICY DIRECTOR FOR THE CONSUMER GROUP CITIZEN ACTION WHICH IS TRYING TO HELP PASS THE TAX BILL EVERY TIME SOMEONE ON THE HILL BARKS LOUD ENOUGH HE WITHDRAWS IF MR CLINTON DOESN'T STAND UP TO THE PRESSURES HE'S GOING TO GET EATEN ALIVE IN THE MEANTIME THE CONTOURS OF THE TAXBILL COMPROMISE BEING NEGOTIATED BY REP ROSTENKOWSKI THE WHITE HOUSE AND BUSINESS GROUPS BECAME CLEARER THE COMPROMISE WOULD RAISE THE CORPORATE TAX RATE TO ABOUT 35 FROM THE CURRENT 34 DROP MR CLINTON'S INVESTMENTTAX CREDITS FOR BIG AND SMALL COMPANIES AND INSTEAD INCREASE THE WRITEOFF THAT SMALL COMPANIES CAN TAKE FOR EQUIPMENT PURCHASES TO 20000 OR 25000 FROM THE CURRENT 10000 IT WOULD ALSO PRESERVE MR CLINTON'S PROPOSAL OPPOSED BY BUSINESS TO STOP US COMPANIES FROM DEFERRING TAXES ON CERTAIN OVERSEAS EARNINGS BUT THE COMPROMISE WOULD TRY TO WIN BUSINESS SUPPORT BY EXCLUDING MR CLINTON'S PROPOSAL TO INCREASE TAXES ON ROYALTIES THAT US FIRMS GET FROM ABROAD REPEALING THE LUXURY TAX ON BOATS HALVING A PROPOSED 1AGALLON INCREASE IN THE BARGEFUEL TAX AND LARGELY EXEMPTING ALUMINUM COMPANIES FROM THE PROPOSED ENERGY TAX MR ROSTENKOWSKI'S MOVE TOWARD BUSINESS HOWEVER MAY PROVE TO BE TOO MUCH FOR DEMOCRATIC LIBERALS IN THE HOUSE MR ROSTENKOWSKI HAD TO BREAK UP A CLOSEDDOOR CAUCUS OF WAYS AND MEANS DEMOCRATS TO APPEAR BEFORE WORRIED MEMBERS OF THE HOUSE DEMOCRATS' POLICY COUNCIL WHO HAVE BEEN HEARING COMPLAINTS FROM RANKANDFILE DEMOCRATS THAT THE TAXWRITING PANEL IS TOO COZY WITH BUSINESS AND DISLOYAL TO THE PRESIDENT WE'VE GOT SOME SERIOUS WORK TO DO TO GET THE VOTES FOR THE TAX BILL ON THE HOUSE FLOOR SAID REP BILL RICHARDSON D NM IN THE END MR CLINTON'S MOST POWERFUL WEAPON FOR HOLDING FELLOW DEMOCRATS IN LINE MAY BE THE SIMPLE FACT THAT THEIR POLITICAL FATES ARE INTERTWINED SHUT OUT OF THE WHITE HOUSE FOR 12 YEARS DEMOCRATIC LAWMAKERS EAGER FOR ACTION ON THE PARTY'S PRIORITIES FEAR ANOTHER HIATUS IF MR CLINTON'S PRESIDENCY IS DISCREDITED WE'RE NOT TALKING ABOUT A GAME SAID REP NANCY PELOSI D CALIF JACKIE CALMES CONTRIBUTED TO THIS ARTICLE 9305120063 930512 TELECOMMUNICATIONS THE SOUNDS OF THE WILDERNESS RUSTLING LEAVES RINGING PHONES BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL WITH THE SUMMER RECREATION SEASON APPROACHING AMERICANS WILL SOON BE TROOPING INTO THE GREAT OUTDOORS WITH THEIR HIKING BOOTS BACKPACKS AND CELLULAR PHONES A FAMILIAR SIGHT IN CITIES THE CELLULAR PHONE IS BECOMING AN INCREASINGLY COMMON ACCESSORY IN WILDERNESS AREAS AS MORE AND MORE VACATIONERS TOTE ONE ALONG JUST IN CASE THEY NEED HELP IN MANY INSTANCES IT'S A GOOD THING THEY DO CELLULAR PHONES HAVE BEEN USED TO CALL IN RESCUE FOR SNOWBOUND MOUNTAIN CLIMBERS INJURED HIKERS AND EVEN THOSE SUFFERING DIABETIC CRISES OUT IN THE MIDDLE OF THE DESERT THE PHONES ARE ALSO POPPING UP ON THE NATION'S WATERWAYS WHERE A GOOD MANY BOATERS HAVE DIALED 911 TO GET OUT OF A JAM IT'S A CASE OF BEING A LIFELINE FOR EMERGENCY PURPOSES SAYS MICHAEL HOUGHTON SPOKESMAN FOR THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION AN INDUSTRY TRADE GROUP IN WASHINGTON DC WHEN YOU'RE OUT THERE IN THE WILDERNESS UNFORTUNATE THINGS CAN HAPPEN CELLULAR PHONES HAVE ALREADY GAINED ACCLAIM FOR ENHANCING SAFETY IN URBAN AREAS WHERE CALLERS HAVE DIALED IN TO REPORT TRAFFIC ACCIDENTS DRUNK DRIVERS AND VIOLENT CRIME IN PROGRESS AN ATHLETIC TRAINER IN SAN MARCOS CALIF USED HIS CELLULAR PHONE TO SUMMON PARAMEDICS AND DOCTORS BELIEVE SAVE THE LIFE OF A CRITICALLY INJURED FOOTBALL PLAYER WHO HAD BEEN KNOCKED UNCONSCIOUS ON A PLAY INDEED THE INDUSTRY HAS DECLARED NATIONAL CELLULAR SAFETY WEEK THIS WEEK TO FOCUS ATTENTION ON THE SECURITY ROLE OF THE PHONES CELLULAR COMPANIES ARE ALSO USING SAFETY AS A MARKETING FEATURE FOR THEIR PHONES US WEST CELLULAR THE TRADE NAME FOR US WEST NEW VECTOR GROUP BELLEVUE WASH RECENTLY SENT OUT A PRESS RELEASE ADVISING BOATERS NOT TO CAST OFF WITHOUT THEIR CELLULAR PHONES THIS BOATING SEASON SO THAT AMONG OTHER THINGS THEY CAN USE THE PHONES TO GET HELP IN AN EMERGENCY THE PROVEN RESCUE RECORD COMES AS WELCOME GOOD NEWS FOR AN INDUSTRY THAT WAS ROCKED BY A CANCER SCARE LAST WINTER AFTER A FLORIDA SUIT WAS FILED TYING A BRAINCANCER DEATH TO THE VICTIM'S CELLULARPHONE USE ALTHOUGH NO SCIENTIFIC EVIDENCE EXISTS TO LINK CELLULARPHONE USE TO CANCER CELLULAR STOCKS WERE BATTERED BY INVESTOR FEARS AND BIG COMPANIES LIKE MCCAW CELLULAR COMMUNICATIONS INC SENT LETTERS TO CUSTOMERS AIMED AT ASSUAGING ANY FEARS DESPITE THE SCARE CELLULAR SALES HAVE CONTINUED THEIR RUNAWAY GROWTH WITH AN ESTIMATED 11 MILLION CUSTOMERS NATIONWIDE COMPARED WITH 12 MILLION IN 1987 WHILE NO FIGURES ARE KEPT FOR HOW MANY PHONES ARE CARRIED OUTDOORS A RECENT INDUSTRY SURVEY FOUND THAT HALF OF NEW SALES WERE FOR CONSUMER PURPOSES SUCH AS BACKPACKING EXPEDITIONS CONSUMER DEMAND IS FUELED BY LIGHTER CHEAPER PHONES SOME PURISTS VIEW THE PROLIFERATION OF TELEPHONES OUTDOORS AS AN INTRUSION ON THE WILDERNESS EXPERIENCE I'D JUST GO NUTS IF I HAD A PHONE ON A TRIP SAYS THERESA SHILLING AN OUTDOORS ENTHUSIAST AND SPOKESWOMAN FOR THE SIERRA CLUB IN SAN FRANCISCO MY GOAL IS TO GET OUT AND AWAY FROM ALL THAT THERE IS ALSO THE DANGER OF PEOPLE BEING LULLED INTO A FALSE SENSE OF SECURITY BECAUSE THEY HAVE A PORTABLE PHONE GLENN BAKER CONCESSIONS SUPERVISOR FOR WASHINGTON STATE'S MOUNT RAINIER NATIONAL PARK SAYS THERE IS NO ASSURANCE OF SPEEDY RESCUE IF A CLIMBER FOR INSTANCE CALLS IN TO REPORT HE IS TRAPPED IN A BLIZZARD THEY RESCUERS MOBILIZE AS FAST AS THEY CAN BUT IF YOU'RE IN A HARSH ENVIRONMENT IT'S A RACE AGAINST NATURE MR BAKER SAYS THE GUY COULD BE IN COMMUNICATION WITH THE PARK SERVICE AS HE DIES STILL MOUNT RAINIER RESCUE TEAMS CREDIT CELLULAR PHONES FOR BEING ABLE TO FIND STRANDED OR INJURED CLIMBERS ON FOUR SEPARATE OCCASIONS LAST YEAR SGT RON PETERSON OF THE WHATCOM COUNTY WASH SHERIFF'S DEPARTMENT WHICH DISPATCHES SEARCH TEAMS ON WASHINGTON'S RUGGED MOUNT BAKER SAYS THE PHONES CUT RESCUE TIME SIGNIFICANTLY MOST OF THE TIME WE HAVE A HUGE DELAY BECAUSE THE REPORTING PARTY HAS TO HIKE OUT TO CIVILIZATION SAYS SGT PETERSON EARLIER THIS MONTH LEVI PADILLA AND TWO FRIENDS WERE LED TO SAFETY OFF OREGON'S 11235FOOT MOUNT HOOD AFTER USING A CELLULAR PHONE TO REPORT THEY WERE TRAPPED IN A SNOWSTORM MR PADILLA AND HIS COMPANIONS ROBERT MCQUEEN AND LANCE PIATT HAD FINISHED AN EIGHTHOUR CLIMB TO THE TOP OF THE SNOWCAPPED PEAK AND WERE ATTEMPTING THE DESCENT WHEN THE STORM HIT NOT OUTFITTED TO SPEND THE NIGHT MR MCQUEEN PULLED OUT THE HANDHELD PHONE HE HAD USED TO CALL HIS WIFE FROM THE SUMMIT AND DIALED 911 A RESCUE TEAM GOT THE MEN GOT OFF THE MOUNTAIN SAFELY IT ENDED REAL WELL SAYS MR PADILLA A GROCERY CLERK FROM NEARBY DALLAS ORE OF THE LITTLE PHONES HE ADDS THEY'RE JUST FANTASTIC IN COLORADO'S ROCKY MOUNTAINS LAST SUMMER TOM GLASS WAS BICYCLING DOWN A FOREST TRAIL WHEN HE CAME ACROSS A MIDDLEAGED CYCLIST LYING ON THE GROUND REDFACED AND PANTING AS HIS WIFE AND A CHILD STOOD BY HELPLESSLY MR GLASS WHO ALWAYS CARRIES A CELLULAR PHONE TO HELP CONDUCT A LANDCONSULTING BUSINESS DIALED FOR HELP OTHERWISE I WOULD HAVE HAD TO GO SIX MILES TO THE NEAREST PHONE SAYS MR GLASS OF FRISCO COLO WITHIN 10 MINUTES OF THE CALL PARAMEDICS ARRIVED ON A NEARBY ROAD TO TRANSPORT THE STRICKEN MAN TO A HOSPITAL THE MAN RECOVERED FROM HIS BOUT WITH ALTITUDE SICKNESS IN TENNESSEE JERRY SHARPE MADE SURE TO BRING ALONG HIS CELLULAR PHONE WHEN HE PACKED TENTS FOOD AND PROPANE FOR A CAMPING TRIP THIS PAST MARCH IN THE APPALACHIAN MOUNTAINS THE HUGE BLIZZARD THAT DEVASTATED THE EASTERN PART OF THE COUNTRY SLAMMED INTO THE MOUNTAINS TRAPPING MR SHARPE A SON GRANDSON AND FAMILY FRIEND AS SOON AS THE WIND AND SNOW DIED DOWN HE CLIMBED A RIDGE TO CALL HIS WIFE AND LET HER KNOW THEY WERE ALL SAFE HIS NEXT CALL WAS TO RESCUERS ALREADY SEARCHING FOR HIS PARTY AND HE MANAGED TO DIRECT BULLDOZERS TO CLEAR THE WAY FOR HIS FAMILY'S EVACUATION MY CELLULAR TELEPHONE IS A GOOD FRIEND' TO HAVE IN THE MOUNTAINS MR SHARPE OF SPRING CITY TENN LATER WROTE THE CELLULARINDUSTRY ASSOCIATION LAST YEAR IN THE ARIZONA DESERT STAN BONEY AND HIS BROTHERS WERE OUT CAMPING ALONG A REMOTE STRETCH OF THE COLORADO RIVER WHEN A YOUNG WOMAN IN THE GROUP SUFFERED A DIABETIC SEIZURE AT NIGHT AND SLIPPED INTO A COMA BY THE NEXT MORNING MR BONEY FROM SAN DIEGO CALIF SAYS ONE PERSON IN THE PARTY USED A CELLULAR PHONE TO CALL FOR HELP AND WITHIN A HALF HOUR PARAMEDICS DROVE UP THE WOMAN WAS RUSHED TO A HOSPITAL WHERE SHE RECOVERED IT THE PHONE COULD'VE SAVED HER LIFE I GUESS BECAUSE WE DIDN'T KNOW WHAT TO DO MR BONEY SAYS CELLULAR PHONES ARE ALSO IN WIDENING USE ON LAKES AND WATERWAYS AS BOATERS FIND THEM A MORE RELIABLE ALTERNATIVE THAN THE LIMITEDRANGE NAUTICAL RADIO JOHN DEFEO'S CAME IN HANDY WHEN HIS 50FOOT POWER BOAT STALLED NEAR DANGEROUS ROCKS IN DESOLATION SOUND OFF BRITISH COLUMBIA MR DEFEO ALWAYS CARRIES A CELLULAR PHONE BECAUSE HE IS PRESIDENT AND CHIEF EXECUTIVE OF US WEST NEW VECTOR GROUP THE CELLULAR UNIT OF DENVERBASED US WEST INC MR DEFEO SAYS HE AND SOME FRIENDS WERE OUT BOATING ONE BLUSTERY NIGHT LAST SUMMER WHEN THE PROPELLER GOT TANGLED IN SOME LINES AND THE MOTOR STOPPED OUT OF RADIO RANGE WITH WINDS THREATENING TO BLOW THE VESSEL UP ON THE ROCKS MR DEFEO SAYS HE USED HIS CELLULAR PHONE TO GET A DIVER OUT AND UNTANGLE THE PROPELLER IT WAS ONE OF THOSE TENSE THINGS THAT HAPPEN MR DEFEO SAYS THESE PHONES CREATE A SAFETY WINDOW THAT PEOPLE NEVER HAD BEFORE 9305120061 930512 HEARD ON THE STREET GAP RETURNS TO ANALYSTS' RECOMMENDED LISTS ON STRENGTH OF APRIL SALES NEW MERCHANDISE BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL GAP STOCK IS BACK IN FASHION AFTER A SLOWDOWN IN SALES GROWTH LAST YEAR MANY ANALYSTS SAY THE APPAREL RETAILER IS BACK ON TRACK THE GAP'S PRICECUTTING BINGE HAS ABATED THEY SAY AND AFTER A TOUGH BATTLE WITH COMPETITORS WHO INVADED ITS REALM OF JEANS AND TSHIRTS GAP SALES ARE PERKING UP AGAIN AS THE COMPANY EXPANDS INTO NEWER AND MORE FASHIONABLE MERCHANDISE SKIRTS DRESSES SCARVES HATS AND BAGS NOT TO MENTION BELLBOTTOM JEANS AS A RESULT A FLOCK OF ANALYSTS AND INSTITUTIONAL INVESTORS SAY THEY BELIEVE THE STOCK HAS BOTTOMED AFTER A NEARLY 18MONTH FREEFALL FROM 60 TO 27 1/2 ON APRIL 6 NOW SOME WALL STREET PROS THINK THE STOCK IS HEADED UP TO THE 60 RANGE AGAIN YESTERDAY IT CLOSED AT 35 UP 7/8 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE I'VE BEEN NEGATIVE ON THE STOCK FOR A LONG TIME BUT I TURNED POSITIVE ON THURSDAY SAID JEANNE MOCKARD A RETAILING ANALYST WITH MUTUAL FUND COMPANY PUTNAM INVESTMENT MANAGEMENT IN RESPONSE PUTNAM'S PORTFOLIO MANAGERS BEGAN BUYING THE STOCK LAST WEEK WHEN A BUNCH OF WALL STREET ANALYSTS UPGRADED THE STOCK THE DEVELOPMENT THAT REIGNITED WALL STREET'S ARDOR FOR THE STOCK CAME THURSDAY WHEN THE COMPANY REPORTED BETTERTHANEXPECTED SALES FIGURES FOR APRIL A DISAPPOINTING MONTH FOR MOST RETAILERS THE COMPANY'S SALES IN STORES OPEN MORE THAN ONE YEAR ROSE 2 EVEN THOUGH ANALYSTS SAY GAP WASN'T MARKING DOWN MERCHANDISE TO BOLSTER ITS SALES FIGURES WHAT'S MORE NOT INCLUDING THE COSTS OF OPENING NEW STORES THE COMPANY'S PROFIT MARGINS ARE SHOWING SIGNS OF IMPROVEMENT SAID JEFF EDELMAN A RETAIL ANALYST AT CJ LAWRENCE I'VE BEEN WAITING 18 MONTHS FOR THIS OPPORTUNITY SAID MR EDELMAN WHO ADDED THE STOCK TO THE FIRM'S RECOMMENDED LIST FOR CLIENTS LAST WEEK I THINK WE'VE HIT THE INFLECTION POINT FOR MARKDOWNS HE SAID AS A RESULT MR EDELMAN BUMPED UP HIS ESTIMATE FOR FISCAL FIRSTQUARTER EARNINGS WHICH THE GAP IS SCHEDULED TO REPORT TOMORROW HE NOW THINKS THE COMPANY WILL EARN AROUND 28 CENTS A SHARE NOT JUST 25 CENTS A YEAR EARLIER THE COMPANY EARNED 32 CENTS A SHARE FOR THE YEAR MR EDELMAN BELIEVES THE COMPANY WILL EARN 165 A SHARE COMPARED WITH 147 LAST YEAR EDWARD WELLER ANALYST WITH MONTGOMERY SECURITIES ALSO RAISED HIS ESTIMATE FOR THE YEAR TO 181 FROM 179 THE COMPANY DIDN'T RETURN PHONE CALLS SEEKING COMMENT THIS ISN'T THE FIRST TIME THE STOCK HAS SHOWN SIGNS OF LIFE SINCE ITS DECLINE LAST FALL THE SHARES FELL TO AROUND 28 IN OCTOBER AFTER THE GAP CUT PRICES ON ITS JEANS TO 28 FROM 38 TO FEND OFF COMPETITION THE STOCK JUMPED IN NOVEMBER IN A PRECHRISTMAS RALLY FOR RETAILING STOCKS HITTING 38 IN LATE NOVEMBER BEFORE SLIPPING BACK THE STOCK IS NOT FOR THE FAINTHEARTED ANALYSTS SAY THE GAP HAS TENDED TO BE A VOLATILE STOCK SAID MR EDELMAN BETWEEN 1990 AND THE BEGINNING OF 1992 THE STOCK SUBSTANTIALLY OUTPERFORMED THE MARKET DURING 1992 THE STOCK SUBSTANTIALLY UNDERPERFORMED BUT A GROWING GROUP OF ANALYSTS AND INVESTORS BELIEVE THE CURRENT REBOUND IN THE SHARES WILL BUOY THEM TO THE 40 RANGE WITHIN THE NEXT SIX MONTHS OR SO SAID DOROTHY LAKNER A RETAILING ANALYST WITH OPPENHEIMER THERE'S A RECOGNITION THAT THEY'VE COME THROUGH A TOUGH PERIOD SAID MS LAKNER WHO BEGAN RECOMMENDING THE STOCK TO CLIENTS LAST WEEK AFTER A TWOYEAR PERIOD WHEN SHE DIDN'T SUGGEST THE STOCK TO CLIENTS ANALYSTS SAY THEY ARE ENCOURAGED TO SEE THE GAP INTRODUCE NEW MERCHANDISE THAT IS SELLING WELL WITHOUT MARKDOWNS THE COLORS ARE APPEALING AND IT'S NOT JUST TSHIRTS SAID MS MOCKARD THE GAP HAS EXPERIMENTED WITH ADDING MORE FASHIONABLE ITEMS TO ITS SELECTION IN THE PAST BUT THE TACTIC HASN'T ALWAYS WORKED FOR EXAMPLE THE COMPANY TOOK BIG MARKDOWNS ON A LINE OF WOMEN'S BLAZERS LAST FALL SOME CUSTOMERS SAID THE BLAZERS FIT POORLY YET INVESTORS WHO WAIT FOR HARD EVIDENCE THAT THE GAP'S CURRENT FASHION EXPERIMENT IS WORKING MAY BE TOO LATE WARNS MS MOCKARD SURE THE COMPANY TOMORROW IS EXPECTED TO REPORT A DECLINE IN FIRSTQUARTER EARNINGS COMPARED WITH A YEAR EARLIER BUT BY THE FISCAL SECOND QUARTER ANALYSTS THINK EARNINGS MIGHT FLATTEN OUT OR START TURNING UP BY THE TIME IT'S EVIDENT THAT THE COMPANY IS BACK ON TRACK SAYS MS MOCKARD THE STOCK WILL BE AT 60 AGAIN 9305120060 930512 NOTABLE & QUOTABLE PAUL GREENBERG EDITORIAL PAGE EDITOR OF LITTLE ROCK'S ARKANSAS DEMOCRATGAZETTE IN THE MAY 1 SPECTATOR OF LONDON BILL CLINTON IS THE EXACT OPPOSITE OF RONALD REAGAN HE KNOWS A LOT BUT HE DOESN'T SEEM TO BELIEVE IN MUCH AND WHAT HE KNOWS SEEMS TO CHANGE CONSTANTLY SWIRLING FROM DAY TO DAY MINUTE TO MINUTE AS INFORMATION WILL IN A COMPUTERISED TELEVISED CLINTONISED CULTURE 9305120059 930512 BOARD OF CONTRIBUTORS TWO PARTIES IN SEARCH OF DIRECTION BY IRVING KRISTOL THE CULTURAL REVOLUTION OF THE 1960S HAS HAD AN ENORMOUS INFLUENCE ON AMERICAN SOCIETY RESHAPING OUR EDUCATIONAL SYSTEM OUR MEDIA AND MUCH OF OUR EVERYDAY LIFE ESPECIALLY AS PERTAINS TO SEXUAL MORES IRONICALLY HOWEVER ITS POLITICAL IMPACT HAS BEEN PERVERSE MOVING THE CENTER OF POLITICS NOTICEABLY TO THE RIGHT THE ELECTION OF BILL CLINTON OFFERS NO CHALLENGE TO THIS GENERALIZATION HIS WAS A SKIMPY VICTORY AGAINST AN INEPT REPUBLICAN ADMINISTRATION AND HIS POPULAR SUPPORT ALREADY SHOWS SIGNS OF MELTING AWAY IN OUR POLITICAL SYSTEM SINGLE ELECTIONS SAY VERY LITTLE IT IS THE CUMULATIVE ELECTORAL STRENGTH THAT IS REVEALING BETWEEN 1932 AND 1968 THE LIBERAL DEMOCRATIC PARTY HAD THE MOMENTUM GOING FOR IT SINCE THEN THE CONSERVATIVE REPUBLICAN PARTY IS ON THE OFFENSIVE A SPLUTTERING OFFENSIVE BUT STRONG ENOUGH TO SHIFT THE ODDS WHAT IS MOST INTERESTING ABOUT THIS NEW SITUATION IS THAT NEITHER PARTY SEEMS TO KNOW WHAT TO DO ABOUT IT THE DEMOCRATS KEEP ASSUMING THAT THE POLITICS OF THE PAST 15 YEARS WERE AN ABERRATION TO BE EXPLAINED BY THE REAGAN ADMINISTRATION'S SKILLFUL AND UNSCRUPULOUS MANIPULATION OF POPULAR OPINION BUT BEHIND THIS SHARED EXPLANATION TWO DISTINCT WINGS OF THE DEMOCRATIC PARTY HAVE TAKEN SHAPE THE TRADITIONAL LIBERALS AND THE POSTMCGOVERN LEFTLIBERALS THE TRADITIONAL LIBERALS ARE REPRESENTED IN CONGRESS BY THE OLDER GENERATION THE NUNNS THE MOYNIHANS THE PANETTAS THE BENTSENS THIS GENERATION HAS LEARNED IN THESE PAST DECADES THOUGH IT IS RELUCTANT TO ADMIT IT THAT THE EGALITARIAN IMPULSE IN A MODERN SOCIETY AND ECONOMY IS NOT STRONG ENOUGH TO PROVIDE SUSTAINED SUPPORT FOR REDISTRIBUTIVE POLICIES IT HAS LEARNED THOUGH IT OFTEN SEEMS TO BE TRYING TO FORGET IT THAT IN OUR INTEGRATED WORLD ECONOMY STATIST ECONOMIC POLICIES ARE ALMOST ALWAYS SELFDEFEATING IT HAS EVEN LEARNED THAT SEEMINGLY ATTRACTIVE GOVERNMENT POLICIES CAN PRODUCE UNATTRACTIVE RESULTS AND IT HAS COME TO UNDERSTAND THAT THE DEFICIT IS NOT A FICTION THAT IT CAN SET LIMITS TO LIBERAL AMBITIONS THIS IS THE REASON THAT MR CLINTON'S BOLD PROGRAMS DO NOT AROUSE MUCH ENTHUSIASM IN THE RANKS OF SENIOR MEMBERS OF CONGRESS OR EVEN OF THE MEDIA SOME OF WHOM HAVE SHARED A SIMILAR LEARNING EXPERIENCE BUT THIS TRADITIONAL LIBERALISM THOUGH POPULAR ENOUGH AMONG THE ELECTORATE IS NO LONGER AT THE VITAL CENTER OF THE DEMOCRATIC PARTY THE LEFTLIBERALS WITH THEIR COUNTERCULTURAL VALUES AND THEIR COMMITMENT TO AN EVER LARGER AND MORE INTRUSIVE STATE HAVE SEIZED CONTROL OF THAT CENTER ONE INTERESTING SIGN OF THIS CHANGE IS THE AMIABLE RELATIONS THAT HAVE DEVELOPED BETWEEN THE TRADE UNIONS AND THIS COUNTERCULTURAL STATIST LEFT UNTIL FAIRLY RECENTLY UNIONS STRONGLY SUPPORTED AN ANTICOMMUNIST FOREIGN POLICY AND WERE CONTEMPTUOUS OF THOSE COLLEGE KIDS WITH THEIR KEEN INTEREST IN EASY UNCONVENTIONAL SEX AS AGAINST HARD WORK AND FAMILY LIFE THE LEADERSHIP OF THE UNIONS USUALLY REFLECTED THESE VIEWS BUT NO LONGER THE GROWTH IN UNION MEMBERSHIP IN RECENT YEARS HAS BEEN ENTIRELY AMONG GOVERNMENTAL WORKERS AT ALL LEVELS AND ESPECIALLY AMONG PROFESSIONALS IN THIS CATEGORY THEY FIT COMFORTABLY INTO THE LEFTLIBERAL NEW CLASS AS A CONSEQUENCE AMONG THE OLDER GENERATION OF TRADE UNION LEADERS WHO ARE VERY SMART IN SENSING THE LOCI OF POWER THERE HAS BEEN A RUSH TOWARD ACCOMMODATION WITH THE NEW ACTIVISTS THE GENERATIONAL TENSIONS WITHIN THE DEMOCRATIC PARTY ALREADY HAVE BEEN A SOURCE OF EMBARRASSMENT FOR THE CLINTON ADMINISTRATION IN JUST ABOUT EVERY CASE HOWEVER THE WHITE HOUSE HAS EXPRESSED ITS SOLIDARITY WITH THE NEW MEN AND WOMEN THIS IS THE TRUE MEANING OF THE CLINTON PRESCRIPTION FOR CHANGE WHICH BEGINS WITH REDEFINING THE PARTY ITSELF IT WON'T WORK JUST AS THE COMPARABLE EFFORT IN FRANCE BY PRESIDENT FRANCOIS MITTERRAND DID NOT WORK MR MITTERRAND WILL BE LEAVING HIS TERM IN OFFICE WITH HIS SOCIALIST PARTY DESTROYED THAT SELFDESTRUCTION WAS INEVITABLE GIVEN THE FISCAL CONSTRAINTS ON HIS EFFORTS AT CHANGE THE RESISTANCE OF THE FRENCH PEOPLE TO AN OVERBLOWN PROBLEMRIDDEN WELFARE STATE THAT WAS INDIFFERENT TO THEIR FEELINGS AND THEIR LIBERTIES AND THE INTERNAL TENSIONS AND CONFLICTS THESE CAUSED WITHIN THE PARTY THE CLINTON ADMINISTRATION SEEMS DETERMINED TO GO DOWN THIS SAME PATH IN ITS SECOND HUNDRED DAYS ONE CAN EXPECT QUITE A BIT OF BACKSTABBING AND THROATCUTTING AMONG THE CLINTON PEOPLE AS THEY STRUGGLE TO SURVIVE THE FORCES OF CHANGE THEY WILL HAVE SET LOOSE THE ELECTION OF MR CLINTON SHOULD NOT BE ALLOWED TO OBSCURE THE FACT THAT BOTH WINGS OF AMERICAN LIBERALISM LIKE THE COMPARABLE WINGS OF EUROPEAN SOCIALISM HAVE ENTERED INTO A BARREN SEASON THE LEFTLIBERALS IN THE ADMINISTRATION DO NOT REALLY HAVE ANY NEW IDEAS ONLY SHOPWORN ONES MOST OF WHICH HAVE ALREADY BEEN TRIED IN EUROPE AND FOUND WANTING FOR A CENTURY AND A HALF NOW IN THE DOMESTIC POLITICS OF ALL THE WESTERN DEMOCRACIES THE FOCUS HAS BEEN ON THE STATE AS A VEHICLE OF SOCIAL AND ECONOMIC REFORMATION IT IS THIS VISION THAT ESTABLISHED A KINSHIP BETWEEN LIBERALISM AND SOCIALISM AND THAT DEFINED THE POLITICAL AGENDA OF BOTH CONSERVATIVES WERE THE PARTY OF OPPOSITION EVEN WHEN IN OFFICE THEY WERE THE NAYSAYERS AND THEIR WARNINGS MANY OF THEM ANYHOW HAVE BEEN LARGELY VINDICATED SO THEY CAN TAKE SATISFACTION IN WATCHING THE POLITICAL CENTER OF THE NATION SLIDE INELUCTABLY TOWARD THE RIGHT BUT AS THINGS STAND THIS IS NO VICTORY FOR CONSERVATISM IT IS ONLY A LOSS FOR LIBERALISM IF VICTORY IS TO BE WON CONSERVATISM WILL HAVE TO COME UP WITH ITS OWN FOCUS ITS OWN CONCEPTION OF THE ROLE OF THE STATE ITS OWN AGENDA FOR THE FUTURE THAT IS NOT SO EASY BECAUSE IT IS IN THE NATURE OF TRADITIONAL CONSERVATISM TO BE SUSPICIOUS OF ANY SUCH AGENDA IT INSINUATES A DISAFFECTION FROM THE STATUS QUO THAT EVOKES ANXIETY BUT THE ROLE OF THE STATE AN AGENDA FOR THE STATE IN OUR MODERN DEMOCRACIES REMAINS THE KEY POLITICAL ISSUE UNTIL QUITE RECENTLY AMERICAN CONSERVATISM WAS HABITUATED TO THINKING OF THE ISSUE AS MAN VS THE STATE TO QUOTE THE TITLE OF A FAMOUS TRACT BY THE 19TH CENTURY THEORIST HERBERT SPENCER TOGETHER WITH THIS ANTITHESIS THERE CAME WITH MORE OR LESS EMPHASIS A VERSION OF SOCIAL DARWINISM WHICH SAW LIFE AS A COMPETITIVE ENTERPRISE IN WHICH THE SURVIVAL OF THE FITTEST ENSURED PROGRESS FOR THE HUMAN RACE THIS LAISSEZFAIRE DEFENSE OF THE CAPITALIST ORDER WOULD HAVE ASTONISHED AND SHOCKED ADAM SMITH AS IT ASTONISHED AND SHOCKED EVERYONE EXCEPT MEMBERS OF THE BUSINESS COMMUNITY AND A HANDFUL OF INTELLECTUALS IT HAS NEVER GAINED THE SLIGHTEST DEGREE OF POPULAR ACCEPTANCE BUT EVEN TODAY ONE SENSES THAT THERE ARE MANY PROMINENT SPOKESMEN FOR THE REPUBLICAN PARTY WHO WHILE NOT OVERTLY SUBSCRIBING TO THE SPENCERIAN THESIS NEVERTHELESS SEEM TO FIND IT NOT ALL THAT UNCONGENIAL IT IS TRUE THAT THE THESIS HAS BEEN REVISED BY TALENTED CONSERVATIVE THINKERS AND HAS ACQUIRED MUCH GREATER INTELLECTUAL SOPHISTICATION SINCE WORLD WAR II THERE IS NOW LESS EMPHASIS ON THE ABSTRACT OPPOSITION OF INDIVIDUAL FREEDOM TO STATE POWER AND MORE ON THE BUMBLING INEFFICIENCIES OF OUR WELFARE STATE ON THE INEQUITIES IT CREATES ON THE IMPEDIMENTS TO ECONOMIC GROWTH IT CANNOT HELP BUT ESTABLISH AND ON THE WAYS IN WHICH DOING GOOD FOR PEOPLE CAN END UP DEMORALIZING THOSE PEOPLE SUCH CONSERVATIVE CRITICISM HAS HAD A PROFOUND EFFECT AND CAN CLAIM MUCH OF THE CREDIT FOR SHIFTING THE POLITICAL CENTER TO THE RIGHT RHETORICAL PREACHMENTS AGAINST THE ROAD TO SERFDOM HAVE LITTLE PERSUASIVE POWER AND ARE HEEDED MAINLY BY CONSERVATIVES IN NEED OF INSPIRITING BUT ANALYSIS OF THE SPECIFICS CAN SUBVERT THE CREDIBILITY OF LIBERALISM'S AGENDA TO SEE THAT THE WORK OF GOVERNMENT IS COMPLICATED THAT GOVERNMENT IS INHERENTLY LIMITED IN ITS COMPETENCE THAT GOVERNING PEOPLE IS HARD THAT THE UNANTICIPATED CONSEQUENCES OF GOVERNMENTAL ACTION MAY BE PERVERSE ALL SUCH THOUGHTS EDGE POLITICAL DISCOURSE IN A MORE CONSERVATIVE DIRECTION LIBERAL REFORMISM HAS ALWAYS DRAWN ITS STRENGTH FROM A PASSIONATE INTELLECTUAL SIMPLICITY BUT WHEN EVEN OUR LIBERAL MEDIA COME TO SEE THROUGH THIS SIMPLICITY AS IS MORE AND MORE THE CASE TODAY THEN CONSERVATISM IS LEGITIMATED HOWEVER PARTIALLY HOWEVER RELUCTANTLY BUT CONSERVATIVES STILL ARE LEFT TO FACE THE QUESTION WHAT KIND OF STATE DO CONSERVATIVES WANT SPECIFICALLY WHAT KIND OF WELFARE STATE DO THEY WANT BECAUSE IN OUR DYNAMIC URBANIZED INDUSTRIAL SOCIETY SOME KIND OF WELFARE STATE IS A PERMANENT FEATURE OF THE POLITICAL LANDSCAPE IT IS ALL WELL AND GOOD TO SING THE PRAISES OF LIMITED GOVERNMENT BUT ONE STILL HAS TO EXPLAIN HOW LIMITED IN WHAT WAYS LIMITED TO WHAT PURPOSES LIMITED AND HOW DEFINE THE WELFARE OF THE WELFARE STATE IS IT TO BE RECKONED MERELY IN DOLLARS AND CENTS OR IS IT TO INCLUDE THE IMPACT OF GOVERNMENTAL ACTION ON THE MORAL CHARACTER OF THE CITIZENRY AND WHAT IS THE MORAL CHARACTER THAT CONSERVATIVES PRIZE AND HOW IS IT TO BE DEFENDED AGAINST OTHER VERSIONS CONSERVATIVE THEORISTS HAVE WRITTEN SOME VERY FINE THINGS ON THIS SUBJECT BUT CONSERVATIVE POLITICIANS AND CONSERVATIVE ACTIVISTS STILL DON'T KNOW WHAT IT IS THEY SHOULD AND SHOULD NOT DO HAVING WON A MAJOR IDEOLOGICAL VICTORY WITH THE COLLAPSE OF SOCIALISM AND THE EROSION OF LIBERAL CERTITUDES CONSERVATIVES MUST GIVE SERIOUS THOUGHT TO WHAT THEY WANT TO DO WITH THIS VICTORYSHIRT MR KRISTOL AN AMERICAN ENTERPRISE INSTITUTE FELLOW COEDITS THE PUBLIC INTEREST AND PUBLISHES THE NATIONAL INTEREST 9305120058 930512 TO ENSURE UNEMPLOYMENT INSURE IT BY DAVID R HENDERSON PRESIDENT CLINTON IS IN THE HEARTLAND THIS WEEK IN AN EFFORT TO ADDRESS AMONG OTHER DISAPPOINTMENTS THE NATION'S JOBLESS RATE BUT THE PRESIDENT IS NOT LIKELY TO MENTION THAT THAT STUBBORN 7 FIGURE WON'T BE HELPED BY LEGISLATION HIS OWN DEMOCRATIC SENATE PASSED RECENTLY THE SENATE BILL PROVIDES FUNDS FOR ADDED UNEMPLOYMENT BENEFITS THESE BENEFITS WILL MEASURABLY INCREASE THE UNEMPLOYMENT RATE AND SLOW DOWN THE JOBS RECOVERY THAT PRESIDENT CLINTON SAYS HE WANTS MOREOVER THEY CREATE A US LABOR MARKET MORE LIKE EUROPE'S WHICH WAS SINGULARLY UNSUCCESSFUL AT CREATING JOBS IN THE 1980S THE DETAILS ARE THESE IN APRIL THE SENATE VOTED TO APPROPRIATE 4 BILLION IN FEDERAL SPENDING FOR EXTENDED UNEMPLOYMENT BENEFITS PRESIDENT CLINTON HAD SIGNED A BILL ON MARCH 4 TO EXTEND BENEFITS ALTHOUGH MOST REPUBLICANS HAD VOTED AGAINST THIS EARLIER BILL THEY WERE OUTVOTED AND LAST MONTH'S BILL PROVIDED THE FUNDS TO IMPLEMENT THE EARLIER LEGISLATION WITHOUT A FEDERAL PROGRAM OF EXTENDED UNEMPLOYMENT BENEFITS UNEMPLOYED WORKERS WOULD TYPICALLY GET UP TO 26 WEEKS OF BENEFITS FROM THEIR STATE GOVERNMENTS BUT THE NEW FEDERAL PROGRAM EXTENDS THIS BY 20 WEEKS IN STATES WITH LOW UNEMPLOYMENT RATES AND BY 26 WEEKS IN STATES WITH HIGH RATES NOW A WORKER IN A HIGHUNEMPLOYMENT STATE CAN COLLECT BENEFITS FOR AS LONG AS ONE YEAR THE LONGER A WORKER CAN GET UNEMPLOYMENT BENEFITS THE LONGER HE OR SHE REMAINS UNEMPLOYED UNEMPLOYMENT BENEFITS BY PROVIDING A DISINCENTIVE TO WORK EXTEND THE DURATION OF UNEMPLOYMENT AND KEEP THE UNEMPLOYMENT RATE UP UNEMPLOYED PEOPLE AREN'T LAZY THEY'RE RATIONAL THEY WEIGH COSTS AND BENEFITS JUST AS THE REST OF US DO THAT UNEMPLOYMENT BENEFITS ACTUALLY CAUSE UNEMPLOYMENT IS NOT CONTROVERSIAL AMONG US ECONOMISTS LAWRENCE H SUMMERS PRESIDENT CLINTON'S OWN UNDERSECRETARY AT TREASURY MAKES THE POINT IN AN ARTICLE IN THE FORTUNE ENCYCLOPEDIA OF ECONOMICS CONSIDER HE SAYS AN UNEMPLOYED PERSON WHO IS USED TO MAKING 10 AN HOUR ON UNEMPLOYMENT INSURANCE THAT PERSON MAKES 55 OF NORMAL EARNINGS OR 550 PER LOST WORK HOUR IF THE PERSON IS IN A 15 FEDERAL TAX BRACKET AND A 3 STATE TAX BRACKET HE OR SHE PAYS 99 CENTS IN TAXES PER HOUR NOT WORKED FOR AN AFTERTAX PAY OF 451 AN HOUR FOR NOT WORKING IF THAT PERSON TOOK A JOB PAYING 10 AN HOUR GOVERNMENTS WOULD TAKE 18 FOR INCOME TAXES AND 75 FOR SOCIAL SECURITY AND MEDICARE NETTING HIM OR HER 745 PER HOUR OF WORK THE NET GAIN FROM WORKING ONLY 294 AN HOUR THAT PERSON MAY WELL DECIDE THAT A FEW MORE WEEKS OF LEISURE AND/OR JOB SEARCH ARE WORTH IT AND OFTEN AN UNEMPLOYED PERSON CAN'T FIND A JOB THAT PAYS AS WELL AS THE OLD ONE BUT CAN FIND A JOB PAYING SOMEWHAT LESS IF THE PERSON IN THE EXAMPLE COULD FIND A JOB PAYING 8 AN HOUR THE AFTERTAX WAGE FROM THE NEW JOB WOULD BE 596 AN HOUR THE NET GAIN FROM WORKING THEN WOULD BE ONLY 145 AN HOUR HOW MANY ADDITIONAL WEEKS OF UNEMPLOYMENT WOULD THE 20TO26WEEK EXTENSION OF UNEMPLOYMENT BENEFITS CAUSE ECONOMISTS BRUCE MEYER OF NORTHWESTERN UNIVERSITY AND LAWRENCE KATZ NOW CHIEF ECONOMIST IN PRESIDENT CLINTON'S LABOR DEPARTMENT ANSWERED A SIMILAR QUESTION IN A 1990 ARTICLE IN THE JOURNAL OF PUBLIC ECONOMICS THEIR RESEARCH CONSIDERED THE EFFECTS OF A 13WEEK EXTENSION OF UNEMPLOYMENT BENEFITS THEY FOUND THAT A 13WEEK EXTENSION INCREASED THE AVERAGE DURATION OF UNEMPLOYMENT FOR SOMEONE RECEIVING BENEFITS BY 22 WEEKS FROM 162 WEEKS TO 184 WEEKS THIS MAY SOUND SMALL BUT IT TRANSLATES INTO A NOTICEABLE INCREASE IN THE OVERALL UNEMPLOYMENT RATE HERE'S THE MATH 22 WEEKS IS A 136 INCREASE BECAUSE ABOUT 40 OF THE UNEMPLOYED RECEIVE UNEMPLOYMENT INSURANCE THE OVERALL UNEMPLOYMENT RATE WOULD BE 54 136 OF 40 HIGHER THAN OTHERWISE APPLYING THIS FIGURE TO OUR CURRENT UNEMPLOYMENT RATE OF 7 MEANS THAT IF UNEMPLOYMENT BENEFITS WERE NOT EXTENDED OUR UNEMPLOYMENT RATE WOULD DROP TO ABOUT 66 AND THAT'S PROBABLY AN UNDERESTIMATE BECAUSE BENEFITS ARE BEING EXTENDED FOR 20 TO 26 WEEKS RATHER THAN 13 WEEKS ECONOMISTS' MAIN ARGUMENT FOR UNEMPLOYMENT BENEFITS IS THE KEYNESIAN ONE BENEFITS KEEP UP THE PURCHASING POWER OF THE UNEMPLOYED SO THAT AGGREGATE DEMAND FOR THE ECONOMY'S GOODS AND SERVICES CAN BE MAINTAINED BUT THIS ARGUMENT APPLIES ONLY DURING A RECESSION WE DON'T HAVE A RECESSION WHAT IS WEAK AS CLINTON'S TEAM HAS POINTED OUT IS JOB GROWTH THE SINGLE MOST PROJOBS MEASURE THAT THE ADMINISTRATION COULD HAVE TAKEN WAS NOT TO EXTEND UNEMPLOYMENT BENEFITS MOST EUROPEAN COUNTRIES OFFER UNEMPLOYMENT BENEFITS FOR MUCH LONGER PERIODS THAN THE US NOT SURPRISINGLY EUROPE HAS A LOT MORE LONGTERM UNEMPLOYMENT THAN WE HAVE PRESIDENT CLINTON AND CONGRESS HAVE NOW MADE IT A BIGGER PROBLEM HERE MR HENDERSON A RESEARCH FELLOW AT THE HOOVER INSTITUTION IS EDITOR OF THE FORTUNE ENCYCLOPEDIA OF ECONOMICS OUT IN AUGUST FROM WARNER BOOKS 9305120057 930512 BUSINESS BRIEF GENERAL SIGNAL CORP INTEGRATED SOLUTIONS IS SLATED TO BE SOLD TO MANAGEMENT GENERAL SIGNAL CORP STAMFORD CONN SAID IT SIGNED A LETTER OF INTENT TO SELL ITS INTEGRATED SOLUTIONS BUSINESS TO THE UNIT'S MANAGEMENT AS PART OF ITS PLAN TO SHED ITS SEMICONDUCTOREQUIPMENT OPERATIONS TERMS WEREN'T DISCLOSED THE MANAGEMENT BUYOUT IS LED BY ELLERY BUCHANAN SENIOR VICE PRESIDENT OF GENERAL SIGNAL'S GCA UNIT WHICH INCLUDES INTEGRATED SOLUTIONS IN MARCH THE COMPANY SAID IT WOULD OFFER FOR SALE INDIVIDUALLY THE THREE COMPONENT BUSINESSES OF THE GCA UNIT NEGOTIATIONS INVOLVING THE REMAINING GCA OPERATIONS ARE CONTINUING THE COMPANY SAID INTEGRATED SOLUTIONS PROVIDES MAINTENANCE AND TECHNICALSUPPORT SERVICES TO CERTAIN SEMICONDUCTOR MANUFACTURERS THAT USE GCA EQUIPMENT GENERAL SIGNAL MANUFACTURES EQUIPMENT AND INSTRUMENTS FOR THE PROCESSCONTROL ELECTRICAL AND INDUSTRIALTECHNOLOGY INDUSTRIES 9305120056 930512 SOTHEBY'S IMPRESSIONIST ART AUCTION RAISES 759 MILLION BUT 36 GO UNSOLD BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL STELLAR PRICES HIT THE ART MARKET LIKE A LIGHTNING BOLT AT SOTHEBY'S HOLDINGS INC'S IMPRESSIONIST AND MODERN ART AUCTION LAST NIGHT A PAUL CEZANNE PAINTING STILL LIFE OF LARGE APPLES CONSIDERED THE BEST WORK FOR SALE DURING THE ANNUAL TWO WEEK SPRING SALES SEASON BROUGHT 286 MILLION THE HIGHEST PRICE PAID FOR A PAINTING AT AUCTION IN THREE YEARS AND SINCE THE MARKET WENT INTO RECESSION IN THE FALL OF 1990 SOTHEBY'S PRIOR TO THE SALE HAD PREDICTED IT WOULD BRING 10 MILLION OR MORE IT WAS PURCHASED BY AN ANONYMOUS BIDDER OVER THE PHONE AFTER BIDDING FROM FOUR CORNERS OF THE FIRM'S YORK AVENUE SALESROOM ALL PRICES INCLUDE SOTHEBY'S BUYERS' COMMISSION THE AUCTION HOUSE CHARGES BUYERS 15 ON THE FIRST 50000 OF THE PURCHASE PRICE AND 10 THEREAFTER THE PAINTING WAS SOLD IN 1958 FOR 252000 AT SOTHEBY'S FIRST BLACKTIE EVENING SALE OF THIS CENTURY TO A DEALER BIDDING ON BEHALF OF GEORGE EMBIRICOS A GREEK SHIP OWNER IF YOU CLOSED YOUR EYES FOR A SECOND YOU COULD ALMOST THINK IT WAS THE BOOM DAYS OF 1989 AGAIN EXCEPT FOR THE STRING OF ROUTINE RENOIRS AND PICASSOS THAT DIDN'T SELL AT ALL MORE THAN ONETHIRD OF THE PAINTINGS DIDN'T FIND BUYERS THAT TELLING FACT WAS SOMEWHAT CAMOUFLAGED IN THE DELIGHT THAT THIS SOTHEBY'S SALE WAS NOT GOING TO BE THE DISASTER THAT ITS SALE OF CONTEMPORARY ART WAS LAST WEEK DAVID NASH DIRECTOR OF SOTHEBY'S IMPRESSIONIST AND MODERN ART SALES WORLDWIDE SAID THE SURPRISE WAS THE ENORMOUS PRICE DIFFERENTIAL BETWEEN FIRSTCLASS PAINTINGS AND SECONDCLASS WE HAD 26 MILLION FOR ONE CEZZANE 1 MILLION FOR THE NEXT AND UNSOLD FOR THE THIRD NONETHELESS THE MOOD OF THE SALES ROOM IMPROVED MARKEDLY AFTER THE RECORD PRICES FOR A CEZZANE AND APPLAUSE PUNCTUATED THE BIDDING THE TOTAL FOR THE SALE INCLUDING THE COMMISSION PAID TO SOTHEBY'S WAS 759 MILLION THE SALE HAD BEEN EXPECTED TO RAISE ABOUT 61 MILLION TO 80 MILLION OF THE 56 ARTWORKS ON THE AUCTION BLOCK 20 OR 36 FAILED TO SELL IT WAS THE PRICIEST SALE OF THE SPRING ART SEASON THREE PAINTINGS OF CONSIDERABLE QUALITY THE CEZANNE AN HENRI MATISSE AND A PIERREAUGUSTE RENOIR WERE EXPECTED TO RAISE ABOUT 23 MILLION AMONG THEM INSTEAD TOGETHER THEY SOLD FOR 496 MILLION VIRTUALLY EVERY MAJOR BIDDER BOUGHT OVER THE TELEPHONE AND REQUESTED ANONYMITY JAPANESE DEALERS AND COLLECTORS THE MAINSTAYS OF THE IMPRESSIONIST PAINTING MARKET THREE YEARS AGO WERE NOT ACTIVE AT THIS SALE DIANA D BROOKS PRESIDENT OF SOTHEBY'S INC THE COMPANY'S ARTAUCTION UNIT SAID THE BIDDERS OF THE MAJOR WORKS WERE KNOWN TO THE COMPANY AND SOTHEBY'S HAD NO CONCERNS THAT THEY WOULD BE UNABLE TO PAY FOR THE WORKS WHICH HAS BEEN A PROBLEM FOR THE AUCTION HOUSES IN THE PAST ANOTHER PIECE THAT TOOK OFF AS IF THE 1980'S ART BOOM HAD NEVER GONE BUST WAS RENOIR'S WOMEN IN THE GARDEN A BRILLIANTLY COLORED 1873 SCENE BURSTING WITH FLOWERS OF WOMEN STROLLING THROUGH A FLOWER BED IN THE PARIS SUBURBS IT WAS ESTIMATED TO SELL FOR 25 MILLION TO 35 MILLION BUT BROUGHT 67 MILLION WHILE OVER ESTIMATE THAT PRICE DEALERS CONCEDED WAS STILL WELL BELOW WHAT THE TEXTBOOK EXAMPLE OF IMPRESSIONISM WOULD HAVE BROUGHT AT THE HEIGHT OF THE MARKET SOTHEBY'S MATISSE WAS ONE OF A SERIES OF ALMOST LIFESIZE FIGURES HE DID IN MOROCCO AROUND 1912 THE PORTRAIT FATMA THE MULATTO WOMAN WHICH WAS NOT TRADITIONALLY PRETTY BUT WAS UNUSUALLY SKILLFUL SOLD FOR 143 MILLION 9305120055 930512 BUSINESS BRIEF AUTOTOTE CORP FIRM SELECTED TO OPERATE CONNECTICUT'S OTB SYSTEM AUTOTOTE CORP SAID IT WAS SELECTED TO OPERATE CONNECTICUT'S OFFTRACK BETTING SYSTEM WHICH IS BEING PRIVATIZED THE TENTATIVE CONTRACT WILL GENERATE ABOUT 30 MILLION IN REVENUE FOR THE COMPANY ANNUALLY SAID MARTIN SCHLOSS AUTOTOTE'S VICE PRESIDENT AND GENERAL COUNSEL IN FISCAL 1992 AUTOTOTE NEWARK DEL HAD REVENUE OF 43 MILLION AUTOTOTE A MAKER OF COMPUTERIZED WAGERING SYSTEMS HAS PROPOSED TO PROVIDE A RANGE OF SERVICES TO THE SYSTEM INCLUDING EXPANDED SIMULCASTING OF HORSE RACES AUTOTOTE WILL TAKE OVER OPERATION OF BETTING LOCATIONS IN CONNECTICUT IT ALREADY PROVIDES SYSTEMS FOR KEEPING TRACK OF BETS FOR THE SYSTEM DEPENDING ON THE SERVICES EVENTUALLY SELECTED AUTOTOTE WOULD PAY THE STATE FROM 76 MILLION TO 20 MILLION AS WELL AS ADDITIONAL ANNUAL PAYMENTS BASED ON TOTAL DOLLARS WAGERED IN THE SYSTEM 9305120054 930512 BUSINESS BRIEF EQUITABLE COS FIRSTQUARTER RESULTS ROSE DESPITE 16 FALL IN REVENUE REVERSING A YEAREARLIER LOSS EQUITABLE COS REPORTED FIRSTQUARTER NET INCOME OF 318 MILLION OR 16 CENTS A SHARE IN THE YEAR AGO PERIOD EQUITABLE POSTED A LOSS OF 186 MILLION THE INSURANCE AND FINANCIAL SERVICES COMPANY HAD NO PER SHARE RESULTS LAST YEAR BECAUSE IT HAS BEEN A PUBLIC COMPANY FOR LESS THAN A YEAR REVENUE FELL 16 TO 150 BILLION FROM 178 BILLION IN THE YEARAGO PERIOD THE COMPANY ATTRIBUTED THE REVERSAL TO IMPROVED RESULTS IN ITS INSURANCE OPERATIONS AND ITS INVESTMENT PORTFOLIOS FIRSTQUARTER RESULTS INCLUDED A 316 MILLION LOSS ON THE COMPANY'S DISABILITY INCOME BUSINESS COMPARED WITH A 45 MILLION LOSS A YEAR EARLIER EQUITABLE IS LOOKING FOR WAYS TO GET OUT OF THAT BUSINESS ON THE NEW YORK STOCK EXCHANGE YESTERDAY EQUITABLE ROSE 625 CENTS TO 2175 9305120053 930512 INTERNATIONAL BRIEF TELEFON AB LM ERICSSON FIRSTQUARTER PRETAX PROFIT OF 577 MILLION IS POSTED SWEDISH TELECOMMUNICATIONS GROUP TELEFON AB LM ERICSSON SAID IT SWUNG TO A 428 MILLION KRONA 577 MILLION PRETAX PROFIT IN THE FIRST QUARTER OF 1993 REVERSING A YEAREARLIER LOSS BUT BELOW MARKET EXPECTATIONS OF A PRETAX PROFIT AROUND 600 MILLION KRONOR THE GROUP'S EARLIER FORECAST OF A SIGNIFICANT LIFT FOR 1993 EARNINGS WAS UNCHANGED IN THE YEAREARLIER QUARTER ERICSSON POSTED A PRETAX LOSS OF 363 MILLION KRONOR ON THE STOCKHOLM STOCK EXCHANGE ERICSSON'S B SHARES CLOSED AT 291 KRONOR 3922 DOWN FROM 300 KRONOR A DAY EARLIER ITS RECORD HIGH 9305120052 930512 INSIDER TRADING SPOTLIGHT BASED ON ACTUAL TRANSACTION DATES IN REPORTS RECEIVED THROUGH FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9305120051 930512 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL AN HMO LOSES AGAIN TO THE IRS IN A BID FOR RECOGNITION AS A CHARITY THE CASE IS OF KEEN INTEREST TO CHARITABLE HEALTH GROUPS THAT HAVE OR WANT TO FORM HEALTH MAINTENANCE ORGANIZATIONS THE HMO GEISINGER HEALTH PLAN IS PART OF THE NINEUNIT GEISINGER SYSTEM IN RURAL PENNSYLVANIA THE OTHER UNITS INCLUDING HOSPITALS QUALIFY AS CHARITIES UNDER TAXCODE SECTION 501C3 FOR EXEMPTBOND FINANCING AND DEDUCTIBLE DONATIONS THE HMO QUALIFIES AS NONPROFIT AND TAX EXEMPT BUT ON FEB 8 THIRDCIRCUIT APPEALS JUDGES UPSET A TAX COURT RULING THAT HAD EXTENDED THE ADDED ADVANTAGES OF 501C3 TO THE HMO THE HMO'S SERVICE TO PAYING SUBSCRIBERS ISN'T ENOUGH TO SHOW CHARITABLE COMMUNITY BENEFITS THE APPEALS COURT SAID BUT IT RETURNED THE CASE TO THE TAX COURT TO DECIDE WHETHER THE HMO DESERVED 501C3 STATUS AS AN INTEGRAL PART OF A CHARITABLE SYSTEM NOW TAX COURT JUDGE COHEN SAYS IT DOESN'T SHE FOUND ITS SERVICE WOULD BE A TAXABLE BUSINESS IF CARRIED ON BY A RELATED CHARITABLE ENTITY GEISINGER HASN'T DECIDED WHETHER TO APPEAL BUT ITS LAWYER FREDERICK J GERHART SAYS HE WILL RECOMMEND APPEAL THE CASE MAY CHILL A NEW APPROACH TO BRINGING CARE TO RURAL AREAS SAYS ERLING HANSEN OF GROUP HEALTH ASSOCIATION OF AMERICA AN ORGANIZATION OF HMOS WHAT WOULD YOU SAY IF YOU WERE ASKED TO RATE THE IRS'S COLLECTION AGENTS ON A SIXPOINT SCALE THE IRS SEES ITSELF AS A FOURPLUS IN TREATING ITS TARGETS WITH FAIRNESS DIGNITY AND RESPECT THE BASIS AN OUTSIDE CONTRACTOR'S INTERVIEWS IN 1991 WITH 4176 TAXPAYERS AFTER THEIR TRAVAILS OVER PASTDUE PAYMENTS OR RETURNS HAD ENDED FOR FAIRNESS ALONE THE IRS GOT HIGH MARKS FROM 47 OF THE FILERS AND LOW ONES FROM 20 ABOUT THE SAME AS IN A 1989 SURVEY WHILE 41 FOUND THE EXPERIENCE BETTER THAN EXPECTED 16 FOUND IT WORSE OTHER FINDINGS 51 SAID IRS COLLECTION EMPLOYEES HELPED THEM UNDERSTAND THEIR RIGHT TO CONFIDENTIALITY 49 SAID AGENTS HELPED THEM UNDERSTAND THEIR RIGHT TO DISAGREE WITH THE IRS ASKED FOR SUGGESTIONS THE TAXPAYERS WANTED MORE SYMPATHETIC AND PERSONAL TREATMENT CLEARER FORMS AND LETTERS AND FASTER AND MORE EFFICIENT SERVICE THE IRS'S TALLY OF UNPAID TAX BILLIONS IS HIGHLY EXAGGERATED THE IRS ADMITS THAT BUT NOW THE GENERAL ACCOUNTING OFFICE SAYS THE FIGURE IS EVEN MORE OVERBLOWN AS REPORTED BEFORE THE IRS ESTIMATED THAT ITS ACCOUNTS RECEIVABLE OF UNPAID TAXES INTEREST AND PENALTIES JUMPED 46 FROM 1988'S LEVEL TO 111 BILLION AT THE END OF FISCAL 1991 THAT LOOKS LIKE A RICH SOURCE OF FUNDS FOR CUTTING THE DEFICIT BUT OWING TO DUPLICATE ENTRIES ERRORS AND THE INCLUSION OF CLEARLY UNCOLLECTIBLE ACCOUNTS IRS RESEARCHERS RECENTLY SAID THAT ONLY 26 OF THAT 29 BILLION IS LIKELY TO BE COLLECTED AND ONLY OVER 10 YEARS A GAO ANALYSIS OF THE IRS ESTIMATES SLASHES THE VALID AMOUNT OF NET COLLECTIBLE RECEIVABLES TO ABOUT 19 BILLION MAINLY BLAMING FLAWS IN IRS METHODS THE GAO SAYS THE IRS OVERSTATED GROSS RECEIVABLES BY MORE THAN 39 BILLION ONE REASON DUPLICATE LISTINGS OF DEBTS FOR WHICH MULTIPLE TAXPAYERS ARE LIABLE THEN THE GAO SAYS THE IRS DIDN'T PROPERLY ANALYZE TAXPAYERS' CURRENT ABILITIES TO PAY WHAT THEY OWED IRS SYSTEMS ARE OUTDATED INEFFICIENT AND ERRORPRONE THE GAO SAYS THE IRS SMILES ON DEALS WITH DELINQUENTS UNABLE TO PAY ALL THEY OWE IN THE FISCAL HALF ENDED MARCH 31 IT ACCEPTED 6636 COMPROMISEPAYMENT OFFERS 55 OF ALL CASES CLOSED THE ACCEPTANCE RATE WAS 45 IN FISCAL 1992 AND 25 IN FISCAL 1991 CHARITY GAMBLING IS EXPECTED TO INCREASE NORTH DAKOTA'S REVENUE GOV SCHAFER HAS SIGNED A BILL RAISING THE STATE'S TAX ON CHARITIES' GROSS PROCEEDS TO 45 FROM 2 THE BILL ALSO RAISES THE CIGARETTE TAX TO 44 CENTS A PACK FROM 29 CENTS AN ENERGY TAX OFFENDS THE NOSE SNIFFS THE NATURAL GAS SUPPLY ASSOCIATION BUT IF THE TAX MUST BE HAVE BUYERS OF BUTANE AND PROPANE PAY IT AT THE POINT OF ODORIZATION THAT IS THE LAST PROCESSING POINT WHERE THE FUEL IS SCENTED FOR SAFETY A LATE FILER ESCAPES THE FAILURETOFILE PENALTY THANKS TO WITHHELD TAXES CHRISTINE PATRONIKHOLDER OF CLEVELAND HEIGHTS OHIO AND HER HUSBAND DIDN'T FILE 1988 RETURNS UNTIL 1992 LONG AFTER THE IRS SENT HER AN INDIVIDUAL DEFICIENCY NOTICE IN 1991 TAXES OF 10631 WITHHELD FROM THEIR WAGES EXCEEDED THEIR JOINT LIABILITY OF 10510 BUT THE IRS SOUGHT PENALTIES FROM HER FOR NEGLIGENCE AND FAILURE TO FILE AND THE RESULT OF HER APPEAL TO THE TAX COURT ILLUSTRATES THE APPARENT CAPRICES OF TAX LAW THE 5 NEGLIGENCE PENALTY APPLIES TO TAX DEFICIENCIES UNREDUCED BY PAYMENTS THROUGH WITHHOLDING SPECIAL JUDGE COUVILLION FOUND PATRONIKHOLDER NEGLIGENT AND ASSESSED THIS PENALTY ON THE FULL 10510 LIABILITY THE PENALTY FOR FILING OVER 60 DAYS LATE IS THE LESSER OF 100 OR 100 OF THE TAX REQUIRED TO BE SHOWN ON THE RETURN BUT HERE PATRONIKHOLDER ARGUED THE REQUIRED TAX MUST BE OFFSET BY ANY WITHHOLDING PAYMENTS ERASING ANY PENALTY AGAINST HER IN THE FIRST COURT RULING ON THIS QUESTION THE JUDGE AGREED IN ENACTING THIS PENALTY IN 1982 CONGRESS SAID IT WAS TO BE IMPOSED ONLY IN CASES OF ACTUAL TAX UNDERPAYMENTS BRIEFS LESLIE SAMUELS NOMINATED TO BE ASSISTANT TREASURY SECRETARY FOR TAX POLICY DISCLOSES HE EARNED 13 MILLION IN 1992 AS A LAW PARTNER AT CLEARY GOTTLIEB STEEN & HAMILTON NEW YORK THE IRS PLANS A HEARING AUG 16 ON PROPOSED MAJOR RULES FOR TRANSFER PRICES IN INTERNATIONAL DEALINGS BETWEEN AFFILIATED COMPANIES 9305120050 930512 BUSINESS BRIEF EMERSON RADIO CORP CONSUMER ELECTRONICS FIRM TO RESTRUCTURE ITS DEBT EMERSON RADIO CORP SAID IT REACHED AGREEMENTS IN PRINCIPLE WITH ITS BANKS AND SENIOR NOTEHOLDERS TO RESTRUCTURE ABOUT 225 MILLION IN DEBT EMERSON SAID ITS DEBT WILL BE REDUCED THROUGH A CONVERSION TO EQUITY OF ABOUT 100 MILLION THE REMAINING INSTITUTIONAL DEBT WILL CONSIST OF A NEW 60 MILLION SECURED LINE OF CREDIT FROM ITS BANKS AND A NEW 65 MILLION SECURED TERM LOAN ARRANGEMENT WITH THE BANKS AND SENIOR NOTEHOLDERS THE NORTH BERGEN NJ MARKETER OF LOWPRICED TO MODERATELY PRICED CONSUMER ELECTRONICS LAST YEAR CEDED CONTROL OF ITS BOARD TO ITS LARGEST SHAREHOLDER FIDENAS INVESTMENT LTD ENDING A PROXY FIGHT THAT HAD THREATENED TO JEOPARDIZE EMERSON'S DEBTRESTRUCTURING PLAN THE NEW AGREEMENTS WERE REACHED WITH SUBSTANTIALLY ALL ITS INSTITUTIONAL CREDITORS EMERSON SAID THE COMPANY SAID THAT AS A CONDITION OF ITS RESTRUCTURING FIDENAS WILL PROVIDE THE COMPANY 325 MILLION 9305120049 930511 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 9305120048 930512 WYMER SENTENCED TO NEARLY 15 YEARS IN FEDERAL PRISON BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES STEVEN D WYMER THE SOUTHERN CALIFORNIA MONEY MANAGER WHO DEFRAUDED DOZENS OF MUNICIPALITIES OF ABOUT 174 MILLION WAS SENTENCED TO NEARLY 15 YEARS IN A FEDERAL PRISON CAMP THE 44YEAROLD MR WYMER WHO PLEADED GUILTY IN SEPTEMBER TO CHARGES OF RACKETEERING SECURITIES FRAUD MAIL FRAUD AND OTHER CRIMES WORE A DARK GRAY SUIT AND SPOKE IN A HUSKY VOICE AS HE TOLD FEDERAL JUDGE RICHARD GADBOIS THAT I WANT TO SAY SIMPLY THAT I KNOW MY ACTIONS WERE WRONG AND I HAVE NO EXCUSES OF THE ORIGINAL 174 MILLION IN LOSSES UP TO 92 MILLION HAS BEEN LOCATED BUT MUCH OF THAT IS THE SUBJECT OF LITIGATION BY COMPETING CLAIMANTS IT IS VIRTUALLY IMPOSSIBLE THAT ALL LOSSES WILL EVER BE RECOUPED AS REQUIRED BY HIS PLEA AGREEMENT WITH US PROSECUTORS MR WYMER HAS BEEN COOPERATING IN GIVING GOVERNMENT REGULATORS INFORMATION THEY NEED TO HELP RECOUP SOME OF THE LOSSES IN ADDITION MR WYMER HAS BEEN AIDING INVESTIGATORS IN THEIR EXAMINATION OF UNAUTHORIZED TRADING BY MONEY MANAGERS JUDGE GADBOIS REDUCED MR WYMER'S PENALTY IN LIGHT OF THE COOPERATION BUT SAID HE DESERVES A LONG SENTENCE IN SENTENCING THE YOUTHFULLOOKING MR WYMER JUDGE GADBOIS SAID THE LOSSES WERE MORE THAN JUST MONEY SOME SMALL MUNICIPALITIES GAVE ALL THEIR MONEY TO THIS GENTLEMAN WHO INSPIRED SUCH CONFIDENCE WITH HIS PERSONAL APPEAL AND THOSE LOSSES ARE GOING TO BE FELT FOR A LONG TIME MR WYMER IS THE FORMER PRESIDENT AND SOLE SHAREHOLDER OF INSTITUTIONAL TREASURY MANAGEMENT INC IRVINE CALIF WHO ATTRACTED 12 BILLION FROM INSTITUTIONAL CLIENTS WITH PROMISES OF HIGH RETURNS AND THEN USED THEIR MONEY FOR SPECULATIVE SECURITIES TRADING AND LAVISH PERSONAL SPENDING IN ENTERING HIS PLEA MR WYMER HAD SAID HE BEGAN DIVERTING HIS CLIENTS' MONEY IN 1986 WHEN HE BECAME EMBARRASSED THAT INSTITUTIONAL TREASURY'S PREDECESSOR FIRM DENMAN & CO HAD RUN UP LOSSES ON ACCOUNTS HE CONCEALED THE LOSSES BY MAILING FALSE ACCOUNT STATEMENTS TO CLIENTS AND BY GIVING PHONY BOOKS AND RECORDS TO SECURITIES AND EXCHANGE COMMISSION REGULATORS WHO INSPECTED HIS FIRM IN ARGUING THAT THE JUDGE SHOULD IMPOSE A HARSH SENTENCE ASSISTANT US ATTORNEY JEAN KAWAHARA SAID THAT VICTIM COMMUNITIES AND GOVERNMENT AGENCIES HAVE HAD TO CANCEL PLANS FOR NEW HOUSING ROADS AND SERVICES ONE CITY DUBUQUE IOWA DEFAULTED ON 35 MILLION IT OWED TO A STATE POLICE AND FIRE RETIREMENT FUND ACCORDING TO THE FEDERAL PROSECUTION'S PRESENTENCING MEMORANDUM MR WYMER'S LAWYER JAMES RIDDET SAID HE THOUGHT THE SENTENCE WAS TOO HIGH AND HIS CLIENT SHOULD HAVE BEEN REQUIRED TO SERVE IN THE RANGE TO 10 TO 12 YEARS BECAUSE OF HIS COOPERATION IN MARCH SOME OF THE MUNICIPALITIES DEFRAUDED BY MR WYMER SUED THREE PRIMARY DEALERS IN US GOVERNMENT SECURITIES ACCUSING THE COMPANIES OF PROVIDING HIM WITH INSIDE HELP MR WYMER TOLD A CONGRESSIONAL SUBCOMMITTEE HE WAS AIDED BY FIVE BROKERAGE FIRMS WHEN HE HID ACCOUNTS AND COVERED UP MONEYLOSING TRADES SEC ENFORCEMENT OFFICIALS HAVE SAID THEY BELIEVE EMPLOYEES AT ONLY ONE OF THE BROKERAGE FIRMS WERE KNOWINGLY AIDING MR WYMER IN HIS TRADING AND CONCEALMENT EFFORTS 9305120047 930512 WHO'S NEWS NOTED WHO'S NEWS CONDE NAST PUBLICATIONS INC NAMED ALEXANDRA GOLINKIN 37 AS PUBLISHER OF ALLURE ITS BEAUTY MAGAZINE SHE SUCCEEDS KATHY NEISLOSS LEVENTHAL WHO WAS NAMED PUBLISHER OF VANITY FAIR MONDAY AFTER RONALD A GALOTTI WAS FORCED TO LEAVE THE MAGAZINE MS GOLINKIN WAS A VICE PRESIDENT AND PUBLISHER OF TRAVEL & LEISURE MAGAZINE PUBLISHED BY AMERICAN EXPRESS CO CONDE NAST IS A UNIT OF ADVANCE PUBLICATIONS INC MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC SAID JORGEN LARSEN WAS NAMED PRESIDENT MCA MUSIC ENTERTAINMENT INTERNATIONAL A NEW POSITION IN THE COMPANY'S MCA MUSIC ENTERTAINMENT GROUP HE WAS MANAGING PARTNER OF DEUTSCHE SCHALLPLATTEN BERLIN AN INDEPENDENT GERMAN RECORD COMPANY SEPARATELY ANN M O'CONNOR WAS NAMED VICE PRESIDENT GOVERNMENTAL AFFAIRS FOR THE MCA/UNIVERSAL UNIT SHE WAS DIRECTOR OF GOVERNMENTAL AFFAIRS FORBES INC SAID TERRY EASTLAND WAS NAMED EXECUTIVE EDITOR OF THE FORBES MEDIAGUIDE A REFERENCE GUIDE TO THE NATION'S MOST INFLUENTIAL JOURNALISTS AND PUBLICATIONS MR EASTLAND WILL CONTINUE AS A RESIDENT FELLOW OF THE LAW AND SOCIETY PROJECT AT THE ETHICS AND PUBLIC POLICY CENTER IN WASHINGTON 9305120046 930512 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY'S TOP TAX OFFICIAL SAID THE EC WOULD RETALIATE IF THE TAX STATUS OF FOREIGN UNITS IN THE US WAS CHANGED TO INCLUDE PARENT FIRMS' PROFITS IN A WASHINGTON SPEECH CHRISTIANE SCRIVENER THREATENED THE WAR OVER SOCALLED UNITARY TAXATION IN WHICH STATES TAX MULTINATIONAL COMPANIES ON TOTAL EARNINGS AND NOT JUST THOSE IN THE STATE SHE SAID EUROPEAN FIRMS HAVE 45 MILLION EMPLOYEES IN THE US CONTRIBUTING TO ITS ECONOMY AT A TIME OF SLUGGISH GROWTH THE EC WANTS FAIR TREATMENT SHE SAID NOTING IT HAS TAX MEASURES THAT BENEFIT US COMPANIES DOING BUSINESS IN EUROPE MEANWHILE THE EC WILL CHALLENGE HIGHER US TAXES ON GASGUZZLING CARS SAYING THE LEVIES ARE APPLIED ALMOST EXCLUSIVELY TO EUROPEAN LUXURY AUTOS IT WILL ASK GLOBAL TRADE REGULATORS TO SET UP A DISPUTESETTLEMENT PANEL ON THE TAXES WHICH ENVIRONMENTALISTS PRAISE FOR CUTTING GAS CONSUMPTION THE RATIO OF JAPANESE JOB OPENINGS TO THE NUMBER OF PEOPLE SEEKING EMPLOYMENT HAS FALLEN FURTHER THE LABOR MINISTRY SAID THE RATIO WHICH FELL BELOW 1 TO 1 LAST OCTOBER FOR THE FIRST TIME IN 4 1/2 YEARS STOOD IN MARCH AT 088 TO 1 OR 88 OPENINGS FOR EVERY 100 CANDIDATES BUT WITH A PICKUP EXPECTED THE MINISTRY PREDICTED THE RATIO WILL BE 097 TO 1 FOR THE FULL FISCAL YEAR ENDING NEXT MARCH EMPLOYMENT PROSPECTS REMAIN SEVERE AS INDUSTRY TRIES TO COPE WITH THE RECENT SHARP UPTURN OF THE YEN AGAINST OTHER MAJOR CURRENCIES POLAND WILL RESUME PAYMENTS ON 85 BILLION IN LOANS FROM WESTERN COMMERCIAL BANKS ITS LAST PAYMENT ON THE MEDIUMTERM AND LONGTERM LOANS WAS IN LATE 1989 AFTER THE COMMUNIST REGIME COLLAPSED AND THE NEW GOVERNMENT PREPARED RADICAL ECONOMIC REFORMS THE FIRST PAYMENT OF 5 MILLION WILL BE MADE MAY 20 FOLLOWED BY MONTHLY PAYMENTS TO THE SOCALLED LONDON CLUB OF BANK LENDERS POLAND'S DEBT TO COMMERCIAL BANKS INCLUDING A SHORTTERM REVOLVING CREDIT TOTALS 121 BILLION ADDING MONEY OWED TO WESTERN GOVERNMENTS RAISES THE TOTAL TO MORE THAN 40 BILLION GREECE DEREGULATED ALMOST ALL FORMS OF CAPITAL MOVEMENT IN AN EFFORT TO BRING ITS ECONOMY CLOSER TO THOSE OF ITS EUROPEAN COMMUNITY PARTNERS GREEKS MAY USE DRACHMAS FOR CURRENCY OPTIONS AND SWAPS AND HOLD FOREIGNCURRENCY ACCOUNTS ABROAD THE GOVERNMENT SAID IT NOW WOULD RELY ON INTERESTRATE MOVES FOR MONETARY POLICY REMAINING CURBS ON SHORTTERM CAPITAL MOVEMENTS SUCH AS LOAN CREDITS ARE TO BE LIFTED NEXT YEAR GREECE HAD DAWDLED ON ENDING THE RESTRICTIONS TO AVOID SPECULATIVE PRESSURES ON ITS CURRENCY THE ENGLISH CHANNEL TUNNEL ALREADY BESET BY COST OVERRUNS AND CONSTRUCTION DELAYS FACES CALAMITY BEFORE IT OPENS IN THE MOVIES COLUMBIA PICTURES IN LONDON SAID IT MIGHT MAKE A CHUNNEL DISASTER MOVIE TENTATIVELY TITLED TRACKDOWN AND THE STUDIO IN LOS ANGELES SAID IT HAD SIGNED THE ACTRESS JODIE FOSTER FOR A ROLE EUROTUNNEL PLC THE OPERATOR OF THE 128 BILLION TUNNEL TO LINK BRITAIN AND FRANCE NEXT YEAR BALKED AT COOPERATING WITH THE FILM EVEN IF ASKED SAYING IT COULD UNDERMINE UNDERSEA COMMUTERS' CONFIDENCE DANISH VOTER SUPPORT FOR THE EUROPEAN COMMUNITY UNIFICATION TREATY IS GROWING AGAIN A GALLUP POLL FOUND DENMARK NEXT TUESDAY WILL HOLD ITS SECOND REFERENDUM ON THE ACCORD FOR A SINGLE EC CURRENCY AND POLITICAL AND ECONOMIC UNITY IN THE POLL 48 OF RESPONDENTS FAVORED AND 33 OPPOSED THE TREATY REVISED WITH EXEMPTIONS FOR DENMARK WHILE 14 WERE UNDECIDED AND 5 DIDN'T INTEND TO VOTE THE SENTIMENT BROKE A TREND IN RECENT SURVEYS OF INCREASING OPPOSITION TO THE TREATY WHICH DANES REJECTED IN A REFERENDUM LAST JUNE BRITAIN HASN'T ACTED ON THE PACT WHICH HAS BEEN APPROVED BY THE OTHER 10 EC MEMBERS CHINA RUSSIA AND NORTH KOREA AGREED TO LET FOREIGNERS HAVE LONGTERM LAND LEASES IN A PROPOSED DEVELOPMENT ZONE STRADDLING THE THREE COUNTRIES' BORDERS THE UNITED NATIONS DEVELOPMENT PROGRAM SAID AN INTERNATIONAL INDEPENDENT COMPANY WILL MANAGE THE ZONE IN THE TUMEN RIVER DELTA THE 38600SQUAREMILE PROJECT WITH A GOAL OF 30 BILLION IN INVESTMENT OVER 20 YEARS WOULD BE THE FIRST MAJOR EFFORT IN ASIA TO INTRODUCE WESTERN CAPITAL AND TECHNICAL KNOWHOW IN UNDERDEVELOPED SOCIALIST TERRITORY MONGOLIA AND SOUTH KOREA ALSO ARE PARTICIPATING IN SINGAPORE CHINA'S FOREIGN TRADE CHIEF TOLD A CONFERENCE ON CHINESE BUSINESS OPPORTUNITIES THAT BEIJING NEEDS TO OPEN UP ITS ECONOMY FURTHER AND SPEED TRADE DEVELOPMENT AND FOREIGN COOPERATION TO ACHIEVE 8 TO 9 ANNUAL GROWTH THROUGH 1995 MEANWHILE TO COMBAT RISING INFLATION AMID GROWING SIGNS OF ECONOMIC OVERHEATING CHINA DECIDED TO RAISE INTEREST RATES RESTRICT BANK LOANS AND CURB THE MONEY SUPPLY THE HONG KONG ECONOMIC TIMES SAID THE ECONOMY IN THE FIRST QUARTER MUSHROOMED 141 FROM A YEAR EARLIER SWITZERLAND FOLLOWING THE LEAD OF BRITAIN AND GERMANY RATIFIED A EUROPEAN MONEYLAUNDERING ACCORD TO TAKE EFFECT SEPT 1 THE BUSINESS SOFTWARE ASSOCIATION IN AUSTRALIA IS OFFERING 1750 REWARDS FOR IDENTIFYING EMPLOYERS USING PIRATED COMPUTER PROGRAMS IT SAID ONLY A THIRD OF 65 MILLION NEW SOFTWARE PRODUCTS LAST YEAR WERE BOUGHT LEGALLY WITH ILLEGAL COPIES COSTING MEMBERS 280 MILLION 9305120045 930512 BUSINESS BRIEF LTV CORP RULING REQUIRES PAYMENTS FOR MINERS' HEALTH BENEFITS A FEDERAL JUDGE RULED THAT A 1992 LAW REQUIRES LTV CORP TO PAY 12 MILLION ANNUALLY TO COVER HEALTHCARE BENEFITS FOR RETIRED COAL MINERS CLEVELANDBASED LTV WHICH HAS BEEN UNDER BANKRUPTCY COURT PROTECTION SINCE 1986 RECENTLY FILED A REORGANIZATION PLAN THAT DOESN'T PROVIDE FOR THE HEALTHCARE PAYMENTS LTV MAINTAINS THAT THE BENEFITS ARE A DEBT INCURRED PRIOR TO ITS BANKRUPTCYCOURT FILING AND PROPERLY EXCLUDED UNDER THE REORGANIZATION PLAN BUT US DISTRICT JUDGE JOHN S MARTIN JR IN NEW YORK RULED THAT THE COAL INDUSTRY RETIREE HEALTH BENEFIT ACT WHICH CONGRESS PASSED TO SET UP A NATIONAL FUND TO WHICH ALL FORMER COAL CONCERNS MUST CONTRIBUTEMAKES THE HEALTH PAYMENTS SIMILAR TO TAXES TAX PAYMENTS GET PRIORITY IN A BANKRUPTCY REORGANIZATION SPOKESMEN FOR LTV COULDN'T BE REACHED FOR COMMENT ON THE RULING SEPARATELY LTV AGREED TO PAY THE STATE OF NEW YORK 612000 IN CASH AND BETWEEN 450000 AND 600000 IN COMMON STOCK TO SETTLE SEVERAL ENVIRONMENTAL CASES STATE OFFICIALS SAID A HEARING ON THE SETTLEMENT IS SCHEDULED FOR MAY 19 IN US BANKRUPTCY COURT IN MANHATTAN 9305120044 930512 BUSINESS BRIEF 21 CENNET INC STARTUP COMPUTER CONCERN GETS 5 MILLION IN FINANCING THE RICHARDSON TEXAS COMPANY SAID COMPAQ SEVIN ROSEN FUNDS AND INTERWEST PARTNERS WILL RECEIVE MORE THAN 50 OF THE STOCK OF 21 CENNET IN EXCHANGE FOR THEIR INVESTMENT SEVIN ROSEN WAS AN INITIAL INVESTOR IN COMPAQ A HOUSTON PERSONAL COMPUTER GIANT WHILE INTERWEST HELPED LAUNCH CONVEX COMPUTER CORP A RICHARDSON TEXAS SUPERCOMPUTER MAKER FOR COMPAQ THE 21 CENNET INVESTMENT COMES AMID A HEIGHTENED FOCUS AT THE COMPANY ON MOBILE COMPUTING AND HANDHELD DEVICES THE COMPANY WORKING WITH MICROSOFT CORP IS EXPECTED THIS YEAR TO ANNOUNCE A SLEW OF MOBILE PCS AND THE COMPANY HAS SAID IT IS DEVELOPING A MACHINE THAT RECOGNIZES HANDWRITTEN AS WELL AS TYPED COMMANDS 9305120041 930512 BUSINESS BRIEF DILLARD DEPARTMENT STORES INC COMPANY'S PROFIT GREW 7 IN THE FISCAL FIRST QUARTER DILLARD DEPARTMENT STORES INC LITTLE ROCK ARK SAID ITS NET INCOME ROSE 7 IN THE FISCAL FIRST QUARTER AMID A GENERAL DOWNTURN IN THE RETAIL INDUSTRY THE DEPARTMENT STORE CHAIN SAID ITS NET FOR THE QUARTER ENDED MAY 1 INCREASED TO 482 MILLION OR 43 CENTS A SHARE FROM 451 MILLION OR 40 CENTS A SHARE A YEAR EARLIER SALES GREW 13 TO 116 BILLION FROM 103 BILLION A YEAR EARLIER DENNIS VAN ZELFDEN AN ANALYST AT RAUSCHER PIERCE REFSNES INC IN DALLAS SAID THE RESULTS WERE NOT A STELLAR PERFORMANCE BUT NOT UNEXPECTED GIVEN WHAT HAPPENED TO MANY RETAILERS IN THE QUARTER HE SAID POOR WEATHER AND SLUGGISH CONSUMER CONFIDENCE CONTRIBUTED TO DISAPPOINTING RESULTS THROUGHOUT THE INDUSTRY IN THE FIRST QUARTER COMPARABLESTORE SALES INCREASED 3 IN THE QUARTER THE COMPANY SAID DILLARD OPERATED 221 STORES IN THE RECENT QUARTER COMPARED WITH 200 STORES IN THE YEAREARLIER PERIOD 9305120040 930512 WHAT'S NEWS WORLDWIDE A BOSNIAN TOWN WAS ENGULFED BY FIGHTING DESPITE A TRUCE ACCORD CROAT FORCES BATTLED BOSNIA'S MUSLIMLED ARMY FOR THE WESTERN HALF OF MOSTAR DEFYING A CEASEFIRE WITNESSES SAID CROAT TROOPS ROUNDED UP HUNDREDS OF MUSLIM CIVILIANS AT GUNPOINT AND MARCHED THEM OUT OF THE TOWN TO A DETENTION CAMP MEANWHILE BOSNIAN SERBS REJECTED A REQUEST BY YUGOSLAV LEADERS FOR A JOINT PARLIAMENTARY SESSION FRIDAY TO RECONSIDER A UN PEACE PLAN YUGOSLAV OFFICIALS APPARENTLY HAD HOPED TO UNDERCUT A WEEKEND REFERENDUM IN WHICH BOSNIAN SERBS ARE EXPECTED TO REJECT THE PLAN BOSNIA'S FOREIGN MINISTER DEMANDED THAT UN PERSONNEL LEAVE HIS COUNTRY BECAUSE THEIR PRESENCE WAS PREVENTING STRONGER MILITARY ACTION MORE THAN 10 OF AMERICANS DRAW THEIR DRINKING WATER FROM SYSTEMS CONTAINING UNSAFE LEVELS OF LEAD ACCORDING TO THE EPA STUDY THE SURVEY FOUND THAT 819 WATER SYSTEMS SERVING 30 MILLION PEOPLE EXCEED THE LEGALLY PERMISSIBLE LEAD LEVEL THE LEVELS WERE FOUND TO BE ESPECIALLY HIGH IN SMALLER CITIES WHICH TEND TO HAVE LESSSOPHISTICATED TREATMENT SYSTEMS FOR THEIR DRINKING WATER THE SURVEY'S HIGHEST LEAD LEVEL 484 PARTS PER BILLION WAS FOUND AT CAMP LEJEUNE A US MARINE CORPS INSTALLATION IN NORTH CAROLINA SCHWARZKOPF TOLD A SENATE PANEL THAT HE OPPOSES LIFTING THE MILITARY'S BAN ON HOMOSEXUALS THE RETIRED ARMY GENERAL SAID THAT IN EVERY CASE HE WAS FAMILIAR WITH WHEN IT BECAME KNOWN IN A UNIT THAT SOMEONE WAS OPENLY HOMOSEXUAL POLARIZATION OCCURRED VIOLENCE SOMETIMES FOLLOWED MORALE BROKE DOWN AND UNIT EFFECTIVENESS SUFFERED THE SECURITY COUNCIL ADOPTED A RESOLUTION CALLING ON NORTH KOREA TO OPEN ITS MILITARY SITES TO NUCLEAR INSPECTORS AND RECONSIDER ITS DECISION TO WITHDRAW FROM A NUCLEAR NONPROLIFERATION TREATY ISRAELI AND PALESTINIAN NEGOTIATORS MET IN WASHINGTON TO DISCUSS A PALESTINIAN DRAFT STATEMENT OF PRINCIPLES ON SELFRULE IN THE OCCUPIED TERRITORIES ISRAEL'S RABIN MEANWHILE TEMPORARILY STAVED OFF A CRISIS WHEN A CABINET MINISTER SAID HE WOULD POSTPONE HIS RESIGNATION FOR ONE WEEK RUSSIA USED ITS SECURITY COUNCIL VETO FOR THE FIRST TIME IN NINE YEARS TO KILL A RESOLUTION THAT WOULD HAVE APPORTIONED THE COST OF UN PEACEKEEPERS IN CYPRUS AMONG UN MEMBERS INSTEAD OF RELYING ON VOLUNTARY CONTRIBUTIONS THE RUSSIANS SAID THE DRAFT RESOLUTION WHICH WAS BACKED BY THE 14 OTHER COUNCIL MEMBERS SET A BAD PRECEDENT THE SENATE BROKE A FILIBUSTER AND VOTED 6236 TO APPROVE A COMPROMISE BILL THAT MAKES VOTER REGISTRATION EASIER THE MOTORVOTER BILL WHICH CLINTON BACKS WOULD ALLOW PEOPLE TO REGISTER WHEN THEY APPLY FOR DRIVER'S LICENSES OR PUBLIC ASSISTANCE AT MILITARY RECRUITMENT OFFICES OR BY MAIL IT NOW GOES TO THE PRESIDENT FOR HIS SIGNATURE A HEALTHCOST STUDY FOUND THAT MORE THAN 16 OF THE HYSTERECTOMIES PERFORMED AT HEALTH MAINTENANCE ORGANIZATIONS ARE INAPPROPRIATE AND THAT AN ADDITIONAL 25 ARE OF QUESTIONABLE BENEFIT THE FINDINGS CHALLENGE THE VIEW THAT HMOS CONTAIN COSTS BY LIMITING UNNECESSARY CARE CLINTON IS EXPECTED TO LIFT THE BAN ON REHIRING AIR TRAFFIC CONTROLLERS FIRED BY PRESIDENT REAGAN FOR AN ILLEGAL STRIKE IN 1981 OFFICIALS SAID THE LABOR AND TRANSPORTATION DEPARTMENTS COULD SEND RECOMMENDATIONS TO THE WHITE HOUSE WITHIN A FEW DAYS RUSSIA'S YELTSIN FIRED TWO CONSERVATIVE SENIOR OFFICIALS AND URGED REGIONAL LEADERS TO SET UP A COUNCIL THAT WOULD HELP ADOPT A NEW CONSTITUTION THE PRESIDENT ALSO WAS SAID TO HAVE SIGNED AN ORDER TO CUT THE STAFF OF HIS CHIEF CRITIC VICE PRESIDENT RUTSKOI HIVINFECTED PEOPLE WHO SMOKE DEVELOP FULLBLOWN AIDS TWICE AS QUICKLY AS PEOPLE WITH THE VIRUS WHO DON'T SMOKE ACCORDING TO A SMALL BRITISH STUDY THAT CONFIRMS PRIOR SUSPICIONS BY RESEARCHERS THE STUDY IS TO BE PUBLISHED THIS FRIDAY IN AIDS AN INTERNATIONAL SCIENCE JOURNAL THAI SOLDIERS SEARCHED FOR MORE BODIES IN THE RUINS OF A DOLL FACTORY THAT CAUGHT FIRE AND COLLAPSED ON MONDAY KILLING MORE THAN 200 WORKERS AND INJURING 500 THE GOVERNMENT MEANWHILE LAUNCHED AN INVESTIGATION INTO THE CAUSE OF THE BLAZE AND PRIME MINISTER CHUAN VISITED THE DEVASTATED FACTORY SITE ON THE OUTSKIRTS OF BANGKOK 9305120039 930512 BUSINESS BRIEF STONE CONTAINER CORP PUBLIC OFFERING WEIGHED OF STAKE IN NEWSPRINT LINES STONE CONTAINER CORP AS PART OF A PLAN TO SHORE UP ITS BALANCE SHEET SAID IT IS CONSIDERING THE POSSIBLE SALE OF A STAKE IN ITS NEWSPRINT AND GROUNDWOOD OPERATIONS THROUGH AN INITIAL PUBLIC OFFERING IN CANADA THE CHICAGO PAPER AND PAPERPACKAGING CONCERN ALSO OUTINED SEVERAL OTHER OPTIONS DESIGNED TO GAIN IMPROVED FINANCIAL LIQUIDITY AND FLEXIBILITY INCLUDING EQUITY AND DEBT FINANCING AND THE SALE OF NONCORE ASSETS AND POSSIBLY A CORE ASSET AT THE ANNUAL MEETING HELD YESTERDAY ROGER W STONE CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE SALE OF SOME OR ALL OF THE COMPANY'S NONCORE ASSETS COULD FETCH MORE THAN 300 MILLION HE SAID AN INITIAL PUBLIC OFFERING OF A PORTION OF ITS NEWSPRINT AND GROUNDWOOD BUSINESS IS A VERY ATTRACTIVE OPTION NOTING THAT OVER THE LAST TWO YEARS MORE THAN 35 BILLION OF FORESTPRODUCTS EQUITY HAS BEEN ISSUED IN CANADA 9305120038 930512 BUSINESS BRIEF QUALCOMM INC U S WEST UNIT SIGNS TO BUY 36000 DIGITAL TELEPHONES U S WEST INC'S CELLULAR TELEPHONE UNIT SIGNED A LETTER OF INTENT WITH QUALCOMM INC TO BUY A MINIMUM OF 36000 PORTABLE DIGITAL TELEPHONES THE COMPANIES SAID QUALCOMM WOULD DELIVER MOST OF THE PHONES OVER A TWOYEAR PERIOD BEGINNING IN LATE 1994 BUT SOME PREPRODUCTION PHONES WILL BE AVAILABLE LATER THIS YEAR TERMS WEREN'T DISCLOSED BUT A SPOKESWOMAN FOR U S WEST NEW VECTOR GROUP SAID THE TELEPHONES WOULD BE PRICED COMPETITIVELY WITH TODAY'S HIGHEND ANALOG PHONES THE NEW PHONES WILL USE CODE DIVISION MULTIPLE ACCESS DIGITAL TRANSMISSION WHICH RIVALS THE DIGITAL TECHNOLOGY ADOPTED BY MCCAW CELLULAR COMMUNICATIONS INC AND SOUTHWESTERN BELL CORP'S CELLULAR UNIT QUALCOMM DEVELOPED THE CDMA TECHNOLOGY THE QUALCOMM PHONES WILL BE ABLE TO TRANSMIT CONVERSATIONS USING EITHER CDMA OR THE EXISTING ANALOG SYSTEM SO THAT CUSTOMERS CAN STILL PLACE AND RECEIVE CALLS WHEN THEY ARE IN AREAS WHERE CDMA TECHNOLOGY ISN'T AVAILABLE 9305120037 930512 BUSINESS BRIEF LORAL CORP FIRM ESTIMATES YEARLY NET ROSE 46 EXCLUDING CHARGES LORAL CORP SAID IT EXPECTS TO REPORT A 46 CLIMB IN PROFIT FOR THE MARCH 31 FISCAL YEAR TO 1778 MILLION OR 462 A SHARE BEFORE ONETIME CHARGES THAT ARE EXPECTED TO RESULT IN A NET LOSS LORAL A DEFENSE ELECTRONICS CONCERN SAID IT WILL TAKE ACCOUNTING CHARGES RELATED TO NONPENSION RETIREMENT BENEFITS TOTALING 2522 MILLION AS WELL AS 178 MILLION IN CHARGES MOSTLY FOR EARLY RETIREMENT OF DEBT AS A RESULT LORAL EXPECTS TO POST A NET LOSS FOR THE YEAR OF ABOUT 922 MILLION OR 239 A SHARE A YEAR EARLIER IT EARNED 1218 MILLION OR 4 A SHARE SALES CLIMBED 16 TO 334 BILLION FROM 288 BILLION WHILE LORAL DIDN'T ESTIMATE EXPECTED FOURTHQUARTER RESULTS PROJECTIONS INDICATE PROFIT BEFORE EXTRAORDINARY ITEMS OF 574 MILLION OR 138 A SHARE AND NET INCOME OF 396 MILLION OR 95 CENTS A SHARE IN THE YEAREARLIER QUARTER LORAL HAD NET INCOME OF 404 MILLION OR 127 A SHARE 9305120036 930512 BUSINESS BRIEF FIRST BRANDS CORP CONSUMER PRODUCTS MAKER POSTS THIRDPERIOD PROFIT FIRST BRANDS CORP REPORTED A PROFIT FOR THE THIRD QUARTER ENDED MARCH 31 DUE TO INCREASED OPERATING MARGINS AND LOWER INTEREST EXPENSE NET INCOME WAS 89 MILLION OR 41 CENTS A SHARE COMPARED WITH A LOSS OF 11 MILLION OR FIVE CENTS A SHARE A YEAR EARLIER THE LOSS REFLECTED A 71 MILLION OR 33CENTASHARE SPECIAL CHARGE RELATED TO REPURCHASE OF DEBT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FIRST BRANDS SHARES CLOSED AT 3075 DOWN 1875 THE DANBURY CONN CONSUMER PRODUCTS MAKER OF SUCH BRANDS AS GLAD PRESTONE STP AND SIMONIZ SAID REVENUE ROSE TO 2195 MILLION FROM 2189 MILLION IN THE FIRST NINE MONTHS NET ROSE TO 388 MILLION OR 178 A SHARE FROM 212 MILLION OR 97 CENTS A SHARE YEAREARLIER RESULTS INCLUDED A CHARGE OF 108 MILLION OR 49 CENTS A SHARE FOR REPURCHASED DEBT AND A ONETIME RESTRUCTURING EXPENSE OF 35 MILLION OR NINE CENTS A SHARE REVENUE ROSE TO 7565 MILLION FROM 7235 MILLION 9305120035 930512 MARKETING & MEDIA BLOCKBUSTER PLANS COMPLEX FOR SPORTS ENTERTAINMENT FORT LAUDERDALE FLA BLOCKBUSTER ENTERTAINMENT CORP IS PURSUING PLANS TO DEVELOP A SPORTS AND ENTERTAINMENT COMPLEX IN SOUTH FLORIDA THE COMPLEX WOULD INCLUDE A RETRACTABLEROOF STADIUM FOR THE FLORIDA MARLINS BASEBALL TEAM WHICH IS CONTROLLED BY THE COMPANY'S CHIEF EXECUTIVE OFFICER H WAYNE HUIZENGA MR HUIZENGA WHO SAID AT THE COMPANY'S ANNUAL MEETING THAT THE BOARD HAD APPROVED A CONCEPTUAL PLAN FOR THE COMPLEX LATER ESTIMATED IT COULD COST 100 MILLION TO 150 MILLION THAT FIGURE ASSUMES THE COMPANY WOULD GET A MUNICIPALITY TO BUILD AND OWN THE STADIUM THE COMPLEX ALSO WOULD INCLUDE AN ARENA TO HOUSE A NATIONAL HOCKEY LEAGUE EXPANSION TEAM FOR WHICH MR HUIZENGA WON A FRANCHISE LAST YEAR BLOCKBUSTER WOULD PAY TO BUILD SUCH THINGS AS A BLOCKBUSTER RECORD AND VIDEO STORE A RECORDING STUDIO AND A MOVIE STUDIO MR HUIZENGA SAID IN AN INTERVIEW MR HUIZENGA SAID IT WILL TAKE SIX TO EIGHT MONTHS TO DETERMINE IF THE COMPLEX HE ENVISIONS MAKES SENSE FINANCIALLY AND TO LOCATE A BUILDING SITE IN ADDITION TO BLOCKBUSTER'S 3127 VIDEORENTAL STORES THE COMPANY OWNS THE SOUND WAREHOUSE AND MUSIC PLUS RECORD CHAINS AND IS DEVELOPING MUSICANDVIDEO MEGASTORES BLOCKBUSTER ALSO ANNOUNCED THAT IT INCREASED ITS FIRSTQUARTER DIVIDEND TO 10 CENTS A SHARE FROM EIGHT CENTS PAYABLE JULY 6 TO STOCK OF RECORD JUNE 16 BLOCKBUSTER ENTERTAINMENT CORP INCREASED ITS ANNUAL DIVIDEND TO 10 CENTS A SHARE FROM EIGHT CENTS AN ARTICLE YESTERDAY INCORRECTLY DESCRIBED THE DIVIDEND AS A QUARTERLY PAYOUT 9305120034 930512 CREDIT MARKETS MOST YIELDS HOLD STEADY AS US 3YEAR SALE TURNS OUT VERY CLOSE TO TRADERS' EXPECTATIONS BY TOM HERMAN AND LYNN K ADLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MOST INTEREST RATES HELD STEADY YESTERDAY AS THE TREASURY BEGAN A THREEPART 35 BILLION BORROWING BINGE THE TREASURY SOLD NEW THREEYEAR NOTES AT AN AVERAGE ANNUAL YIELD OF 427 VERY CLOSE TO WHAT MANY TRADERS HAD EXPECTED IT ALSO WAS THE LOWEST AUCTION AVERAGE SINCE THE GOVERNMENT BEGAN REGULARLY SCHEDULED SALES OF THREEYEAR NOTES IN THE LATE 1970S AS OF LATE YESTERDAY MOST TREASURY NOTE AND BOND PRICES WERE TRADING VERY CLOSE TO WHERE THEY WERE THE PREVIOUS DAY IN LIGHT TRADING FOR EXAMPLE THE TREASURY'S 30YEAR BONDS TRADED LATE IN THE DAY AT 103 30/32 YIELDING 681 UNCHANGED FROM LATE MONDAY PEOPLE WERE NOT EXPECTING THIS ONE TO BE TROUBLE AND IT WASN'T SAID LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES INC A BOND MARKET ADVISORY FIRM MUNICIPAL BOND PRICES WERE LITTLE CHANGED EVEN AS ANOTHER LARGE WAVE OF NEW ISSUES HIT THE MARKET YESTERDAY INVESTMENTGRADE CORPORATES ALSO WERE LITTLE CHANGED WHILE MORTGAGE SECURITIES INCHED HIGHER TOUGHER TESTS OF THE LONGRUNNING BULL MARKET'S STRENGTH WILL COME TODAY AND TOMORROW TODAY THE TREASURY WILL SELL 1075 BILLION OF 10YEAR NOTES EXPECTED BY TRADERS TO YIELD AROUND 59 TOMORROW THE GOVERNMENT WILL SELL 825 BILLION OF 30YEAR BONDS EXPECTED TO YIELD ABOUT 68 THE RESULTS OF THE THREEYEAR NOTE SALE WERE ABOUT AS EXPECTED BUT THEY DIDN'T GIVE US ANY FEEL FOR INVESTOR APPETITE FOR LONGERTERM PAPER TO BE SOLD TODAY AND TOMORROW SAID LAWRENCE N LEUZZI MANAGING DIRECTOR AT SG WARBURG & CO THE TONE FOR TODAY'S 10YEAR NOTE SALE IS LIKELY TO BE INFLUENCED STRONGLY BY THE GOVERNMENT'S PRODUCER PRICE REPORT TO BE RELEASED THIS MORNING MR LEUZZI AND OTHER ANLYSTS SAID TODAY'S REPORT IS WIDELY EXPECTED TO SHOW A SLIM 02 INCREASE IN APRIL PRODUCER PRICES COMPARED WITH 04 THE PREVIOUS MONTH IF SO THEN WE SHOULD SEE THE 10YEAR NOTE AUCTION GO WELL MR LEUZZI SAID BUT FOR INDIVIDUAL INVESTORS IN THE TOP FEDERAL INCOME TAX BRACKET THE TREASURY'S THREEYEAR NOTES WON'T PROVIDE MUCH OF A RETURN AFTER TAXES AND INFLATION OVER THE NEXT THREE YEARS SEVERAL INVESTMENT ADVISERS WARN FOR INVESTORS IN THE 31 TAX BRACKET A 427 YIELD MELTS TO SLIGHTLY LESS THAN 3 AFTER TAXES AND THAT'S ABOUT WHAT MANY ECONOMISTS EXPECT INFLATION TO AVERAGE OVER THE NEXT FEW YEARS INVESTORS GENERALLY NEED TO LOOK AT FIVEYEAR TO 10YEAR MATURITIES IN ORDER TO ACHIEVE A REASONABLE RETURN WITH A COMFORTABLE AMOUNT OF INTERESTRATE RISK SAID JONATHAN D POND PRESIDENT OF FINANCIAL PLANNING INFORMATION INC A WATERTOWN MASS FINANCIAL PLANNING AND PUBLISHING COMPANY FIVEYEAR TREASURY NOTES NOW YIELD ABOUT 5 SEVENYEAR NOTES ABOUT 55 AND 10YEAR NOTES ABOUT 59 MR POND IS ESPECIALLY BULLISH ON INTERMEDIATETERM TAXFREE BONDS THEIR AFTERTAX RETURNS ARE FAR SUPERIOR TO TREASURYS AND CORPORATES FOR MANY INDIVIDUAL INVESTORS HE SAID AND MUNIS LOOK PARTICULARLY ATTRACTIVE BECAUSE OF THE GROWING LIKELIHOOD OF HIGHER TAXES SOON SOME TRADERS WERE SURPRISED BY THE LARGE AMOUNT OF BIDS THE TREASURY RECEIVED AT YESTERDAY'S NOTE SALE THE TREASURY RECEIVED 4638 BILLION OF BIDS FOR THE 1617 BILLION OF NOTES IT SOLD AFTER THE AUCTION BOND PRICES RALLIED SLIGHTLY TRADERS SAID INVESTORS APPEAR TO BE REACTING TO GROWING SIGNS OF ECONOMIC SLUGGISHNESS THAT COULD HELP KEEP INFLATION LOW SOME ANALYSTS EVEN THINK THE FEDERAL RESERVE MAY DECIDE TO TRIM SHORTTERM INTEREST RATES ANOTHER NOTCH SOON IN AN EFFORT TO PROVIDE THE ECONOMY WITH A LIFT THERE WAS VERY BROADBASED PARTICIPATION SAID JOHN COSTAS HEAD OF GOVERNMENT SECURITIES TRADING AT FIRST BOSTON CORP AS OF LATE YESTERDAY THE THREEYEAR NOTES WERE TRADING IN THE WHENISSUED MARKET AT A YIELD OF 424 DOWN 003 PERCENTAGE POINT FROM THEIR AUCTION AVERAGE TREASURY NOTE AND BOND YIELDS HOVERED IN A NARROW RANGE ALL DAY AS THE TREASURY LAUNCHED ITS QUARTERLY REFUNDING OPERATION YIELDS ON SHORTTERM TREASURY BILLS ENDED MIXED THE YIELD ON THE LATEST THREEMONTH TBILL DIPPED TO 293 FROM 295 BUT THE SIXMONTH BILL YIELD ROSE TO 307 FROM 303 TWOYEAR NOTES YIELDED 376 UNCHANGED FROM MONDAY FIVEYEAR NOTES YIELDED 5 DOWN FROM 501 AND SEVENYEAR NOTES YIELDED 549 DOWN FROM 552 YIELDS ON 10YEAR NOTES AT 587 AND 30YEAR BONDS AT 681 WERE UNCHANGED I THOUGHT THERE WAS BROADLY BASED INTEREST IN THE THREEYEAR NOTE SALE YESTERDAY SAID RICHARD KELLY PRESIDENT OF AUBREY G LANSTON & CO BERNARD KANE A MANAGING DIRECTOR AT FUJI SECURITIES ADDED THE THREE YEAR WENT REASONABLY WELL TREASURY OFFICIALS SAID THEY RECEIVED 994 MILLION IN NONCOMPETITIVE BIDS REPRESENTING LARGELY INDIVIDUAL INVESTORS THAT WAS UP FROM 876 MILLION AT THE FEBRUARY SALE WHEN THE AVERAGE YIELD WAS 473 BUT NONCOMPETITIVE BIDDING WAS SLIGHTLY LOWER THAN THE AVERAGE OF ABOUT 102 BILLION AT THE PREVIOUS DOZEN AUCTIONS OF THREEYEAR NOTES HERE ARE DETAILS OF YESTERDAY'S THREEYEAR NOTE AUCTION 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 MAY 15 1996 THE START OF THE TREASURY'S REFUNDING DID LITTLE TO DULL THE PACE OF MUNICIPAL SECURITIES ISSUANCE OR TO PRESSURE MUNICIPAL PRICES UNDERWRITERS PRICED 2 BILLION OF MUNICIPAL DEBT YESTERDAY WHILE PRICES IN SECONDARY TRADING WERE UNCHANGED TO ABOUT 3/8 POINT FIRMER IN SECONDARY TRADING THE MASSACHUSETTS WATER RESOURCE AUTHORITY'S 5 BONDS DUE 2022 ENDED UNCHANGED AT 88 1/8 TO YIELD 585 DENVER'S 675 AIRPORT REVENUE BONDS DUE 2022 FINISHED 3/8 HIGHER AT 100 1/8 TO YIELD 670 THIS WEEK'S NEW MUNI VOLUME ALREADY APPROACHES 3 BILLION DESPITE THE FLOW OF ISSUANCE THERE WAS STRONG ENOUGH DEMAND TO ENABLE SOME UNDERWRITERS OF YESTERDAY'S DEALS TO REDUCE YIELDS BY ANYWHERE FROM 002 TO 025 PERCENTAGE POINT TOPPING THE RANKS OF MUNICIPAL DEBT ISSUERS YESTERDAY WERE MASSACHUSETTS WITH 769 MILLION OF GENERAL OBLIGATION BONDS WASHINGTON DC WITH 486 MILLION OF GENERAL OBLIGATION BONDS THE LOWER COLORADO RIVER AUTHORITY WITH 3053 MILLION OF REFUNDING REVENUE BONDS AND WASHINGTON STATE WITH 210 MILLION OF GENERAL OBLIGATION BONDS PRICES OF INVESTMENTGRADE ISSUES WERE LITTLE CHANGED FOLLOWING THE LEAD OF THE TREASURY SECURITIES MARKET IN THE HIGHYIELD HIGHRISK JUNK BOND MARKET TRADERS FOCUSED ON SEVERAL NEW ISSUES AMONG THESE WAS A 525 MILLION RESTRUCTURED ISSUE BY GAYLORD CONTAINER CORP OF SENIOR NOTES AND SENIOR SUBORDINATED DISCOUNT NOTES GAYLORD MAKES CONTAINERS AND CHEMICALS AND ALSO PRODUCES AND SELLS ELECTRICITY ORIGINALLY PLANNED AS A THREEPART ISSUE GAYLORD FINALLY PRICED IT AS A TWOPART ISSUE WITH 300 MILLION OF 12YEAR SUBORDINATED ZEROCOUPON SECURITIES AND 225 MILLION OF EIGHTYEAR NOTES THE RECONFIGURED OFFERING PROVED POPULAR WITH WALL STREET AND BOTH PORTIONS CLOSED TRADING UP ABOUT 3/4 POINT A LARGE VOLUME OF INVESTMENTGRADE ISSUANCE APPEARS TO BE BUILDING AMERICAN TELEPHONE & TELEGRAPH CO FILED A 26 BILLION SHELF REGISTRATION TO ISSUE DEBTS AND WARRANTS AND BRISTOLMYERS SQUIBB CO FILED TO ISSUE AS MUCH AS 1 BILLION IN DEBT BELLSOUTH TELECOMMUNICATIONS INC A UNIT OF BELLSOUTH CORP ALSO FILED TO OFFER AS MUCH AS 800 MILLION OF DEBT ON MONDAY FORD MOTOR CREDIT CO A FORD MOTOR UNIT FILED A 4 BILLION SHELF REGISTRATION PRICES OF MORTGAGE SECURITIES ENDED HIGHER IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR MAY DELIVERY FINISHED 1/4 POINT HIGHER AT 101 11/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ENDED 9/32 HIGHER AT 101 3/4 AND 101 19/32 RESPECTIVELY IN THE PRIMARY MARKET TWO NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS WERE ANNOUNCED FREDDIE MAC ANNOUNCED SERIES 1538 A 500 MILLION ISSUE BACKED BY THAT AGENCY'S 15YEAR 65 ISSUES AND PRICED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP LEHMAN BROTHERS BROUGHT OUT FANNIE MAE SERIES 199396 A 500 MILLION REMIC COLLATERALIZED BY 30YEAR 7 ISSUES IN THE SECONDARY REMIC AREA INVESTORS HAVE DIVIDED OPINIONS AS TO WHETHER THIS MARKET CONTINUES TO OFFER ENOUGH YIELD TO COMPENSATE FOR THE RISK ASSOCIATED WITH THE UNCERTAINTIES OF PREPAYMENTS ALTHOUGH SOME INVESTORS HAVE BEGUN TO SHUN THIS SECTOR MANY ACCOUNTS ARE JUST BEING MORE CAREFUL WHEN SORTING THROUGH POTENTIAL PURCHASES 9305120033 930512 TECHNOLOGY BRIEF ORACLE CORP PACT WITH U S WEST IS SET TO DEVELOP SERVER COMPUTER ORACLE CORP AND U S WEST SAID THEY HAVE FORMED AN ALLIANCE TO DEVELOP A SERVER COMPUTER TO DELIVER ELECTRONIC INFORMATION SERVICES TO SCHOOLS BUSINESSES AND CONSUMERS THE TWO COMPANIES WILL POOL THEIR EFFORTS IN TARGETING A NASCENT MARKET FOR MULTIMEDIA DATA SERVICES THAT COMBINE TEXT AUDIO AND VIDEO ORACLE A REDWOOD SHORES CALIF SOFTWARE MAKER SAID IT HOPES ITS COMPUTER SYSTEM WHICH WILL ACT AS A CENTRAL DATABASE AND FILE SYSTEM IN AN INFORMATION HUB WILL BECOME AN INDUSTRY STANDARD U S WEST A DENVER TELEPHONE HOLDING COMPANY SAID IT EXPECTS TO BEGIN PROVIDING A MULTIMEDIA MESSAGING SERVICE TO ITS CUSTOMERS BY LATE 1993 OR EARLY 1994 THE TWO COMPANIES SAID THEY HOPE TO FORM ALLIANCES WITH INFORMATION PROVIDERS SUCH AS UNIVERSITIES AND ENTERTAINMENT COMPANIES TO FACILITATE DEVELOPMENT OF ELECTRONIC INFORMATION SERVICES 9305120032 930512 DIVIDEND NEWS UNITED INDUSTRIAL CORP UNITED INDUSTRIAL CORP NEW YORK SAID ITS BOARD CUT THE QUARTERLY 68 TO FIVE CENTS A SHARE CITING A FIRSTQUARTER LOSS THE DIVIDEND HAD BEEN 16 CENTS A SHARE THE NEW PAYOUT WILL BE MADE AUG 27 TO SHARES OF RECORD AUG 3 THE MAKER OF MILITARY AND INDUSTRIAL TECHNOLOGY EQUIPMENT POSTED A FIRSTQUARTER LOSS OF 165 MILLION OR 134 A SHARE WHICH INCLUDED A 1 MILLION GAIN FROM AN ACCOUNTING CHANGE THE COMPANY SAID THE BOARD WOULD REVIEW ITS DIVIDEND POLICY BASED UPON FUTURE RESULTS OF OPERATIONS 9305120031 930512 BUSINESS BRIEF DART GROUP CORP NEWSTORE OPENINGS HELPED INCREASE SALES 6 IN QUARTER DART GROUP CORP SAID SALES ROSE 6 IN THE FISCAL FIRST QUARTER LARGELY DUE TO NEWLY OPENED SHOPPER'S FOOD WAREHOUSE AND SUPER CROWN BOOKS STORES BUT SAMESTORE SALES OR SALES AT STORES OPEN AT LEAST A YEAR FELL 3 IN THE QUARTER ENDED APRIL 30 TOTAL SALES ROSE TO 311 MILLION FROM 293 MILLION A YEAR EARLIER THE LANDOVER MD CONCERN SAID THE RESULTS INCLUDE THREE DART SUBSIDIARIES SHOPPER'S FOOD WAREHOUSE CROWN BOOKS CORP AND TRAK AUTO CORP SHOPPER'S FOOD WAREHOUSE ADDED FOUR STORES SINCE LAST YEAR BRINGING THE TOTAL TO 35 ALL OF WHICH OPERATE IN THE WASHINGTON DC AREA SALES OF CROWN BOOKS ROSE AN ADJUSTED 7 FOR THE 13 WEEKS ENDED MAY 1 1993 TO 545 MILLION FROM 501 MILLION A YEAR EARLIER SAMESTORE SALES WERE FLAT THOUGH CROWN WHICH OPERATES 249 BOOKSTORES IN THE US OPENED 16 NEW SUPER CROWN BOOK STORES A SPOKESMAN SAID TRAK SAID TOTAL SALES WERE FLAT AT 778 MILLION IN THE QUARTER BUT SAMESTORE SALES ROSE 1 TRAK CLOSED 11 OF THE 331 STORES IT HAD IN OPERATION A YEAR AGO 9305120030 930512 COMMODITIES US PREDICTION OF 13 RISE IN WHEAT HARVEST BELOW PRIVATE FORECASTS TO LIFT PRICES NEAR TERM BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE AGRICULTURE DEPARTMENT SAID IT EXPECTS US FARMERS TO HARVEST 181 BILLION BUSHELS OF WINTER WHEAT IN THE NEXT SEVERAL WEEKS UP 13 FROM LAST YEAR A LARGER WINTER WHEAT HARVEST WOULD HELP REPLENISH THE NATION'S UNCOMFORTABLY TIGHT STOCKPILES AND THUS KEEP A LID ON CROP PRICES WINTER WHEAT WHICH IS PLANTED IN THE FALL IN THE SOUTHERN PLAINS AND MIDWEST AND HARVESTED IN THE EARLY SUMMER MAKES UP THE BULK OF THE WHEAT GROWN IN THE US THE NATION'S WHEAT STOCKPILE IS EXPECTED TO SWELL 29 BY MAY 1994 COMPARED WITH THE SUPPLY LEFT BEFORE THIS YEAR'S HARVEST BEGINS HOWEVER SOME GRAIN TRADERS EXPECT WHEAT PRICES TO RISE IN THE SHORT TERM IN PART BECAUSE SEVERAL PRIVATE FORECASTERS HAD EXPECTED THE GOVERNMENT TO PREDICT UP TO A 19 BILLION BUSHEL HARVEST KANSAS THE LARGEST WHEAT PRODUCING STATE IS SEEN GENERATING RECORD YIELDS IN THE WAKE OF AN UNUSUALLY WET WINTER ACROSS MUCH OF THE NATION'S MIDSECTION THE GOVERNMENT'S FIRST ESTIMATE OF THE US WINTER WHEAT CROP WAS RELEASED AFTER THE CLOSE OF TRADING YESTERDAY AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR JULY DELIVERY SLIPPED 025 CENT A BUSHEL TO SETTLE AT 29350 IT ISN'T CLEAR WHETHER WHEAT PRICES WILL GET A BOOST FROM THE AGRICULTURE DEPARTMENT'S DECISION TO PEG THE FORMER SOVIET UNION'S WHEAT HARVEST AT ROUGHLY 288 BILLION BUSHELS DOWN 367 MILLION BUSHELS FROM LAST YEAR THE FORMER SOVIET REPUBLICS AS A GROUP DON'T PRODUCE ENOUGH GRAIN TO MEET THEIR OWN NEEDS SO A DROP IN GRAIN PRODUCTION USUALLY FORCES THEM TO IMPORT EVEN MORE WHEAT FROM THE US AND EUROPEAN COMMUNITY AMONG OTHERS BUT ECONOMIC TURMOIL IN THE FORMER REPUBLICS HAVE MADE THEM HEAVILY DEPENDENT ON FOOD AID AND CREDIT ASSISTANCE FROM THE WEST WHEAT PRODUCTION IN CHINA CANADA AND EC IS ALSO EXPECTED TO SLIP THIS YEAR ALTHOUGH THE UNUSUALLY WET WEATHER IS BOOSTING THE POTENTIAL SIZE OF THE WINTER WHEAT CROP IT ALSO HAS SLOWED THE CROP'S MATURITY BY UP TO TWO WEEKS IN SOME AREAS A LATE HARVEST COULD DISRUPT THE PLANS OF FARMERS IN STATES SUCH AS ILLINOIS AND INDIANA WHERE SOYBEANS ARE OFTEN PLANTED AFTER THE SOFT RED WINTER WHEAT HARVEST AFTER ENDURING THE SECOND COOLEST SUMMER OF THE CENTURY A WETTERTHANNORMAL SPRING HAS BROUGHT THE CORN AND SOYBEAN PLANTING SEASON TO A CRAWL ACROSS MUCH OF THE NATION'S MIDSECTION MASON CITY IOWA FOR EXAMPLE HAS RECEIVED NEARLY TWICE ITS NORMAL PRECIPITATION SO FAR THIS YEAR ALTHOUGH THE GROWING SEASON IS YOUNG SOME GRAIN ANALYSTS MIGHT BEGIN TO TRIM THEIR CORN HARVEST FORECASTS IN ANOTHER WEEK IF THE RAINY WEATHER DOESN'T BREAK BY MIDMAY SOME MIDWEST CORN FARMERS WILL HAVE TO SWITCH TO SHORTER SEASON VARIETIES IN ORDER TO PRODUCE A MATURE CROP BEFORE THE FIRST KILLING FROST OF FALL THESE SHORTER SEASON VARIETIES GENERALLY HAVE A LOWER YIELD THAN FULL SEASON STRAINS ACCORDING TO THE AGRICULTURE DEPARTMENT US CORN FARMERS HAVE PLANTED ONLY ABOUT 18 OF THEIR LAND COMPARED TO 67 BY THIS TIME LAST YEAR US SOYBEAN FARMERS HAVE COMPLETED ONLY 2 OF THEIR PLANTING COMPARED TO 18 BY THIS TIME LAST YEAR MOST MIDWEST FARMERS WILL RUN OUT OF TIME TO PLANT ANY VARIETY OF CORN BY EARLY JUNE BY THEN THE ONLY ALTERNATIVE FOR MANY FARMERS IS TO PLANT SOYBEANS A DEVELOPMENT THAT WOULD TEND TO DEPRESS SOYBEAN PRICES PETER LEAVITT EXECUTIVE VICE PRESIDENT OF WEATHER SERVICES CORP OF BEDFORD MASS SAID YESTERDAY HE EXPECTS THE MIDWEST TO RECEIVE FIVE DAYS OF NORMAL WEATHER WHICH MIGHT GIVE MANY FARMERS TIME TO COMPLETE THEIR PLANTING BUT THAT PERIOD WILL PROBABLY BE FOLLOWED BY A RETURN TO WET WEATHER MR LEAVITT SAID IN OTHER COMMODITY MARKETS ENERGY PETROLEUM FUTURES PRICES DRIFTED LOWER DUE TO TECHNICAL FACTORS IN LIGHT TRADING ON THE NEW YORK MERCANTILE EXCHANGE PRODUCTS LED THE WAY LOWER TRAPPED IN THE LIMBO OF THE SEASON IT IS TOO LATE IN THE YEAR FOR WEATHER TO SPUR HEATING OIL GAINS OR LOSSES AND TOO EARLY IN THE YEAR FOR GASOLINE TO BENEFIT OR LOSE GROUND ON REPORTS OF VACATION DEMAND JUNE CRUDE OIL LOST 10 CENTS A BARREL TO FINISH THE SESSION AT 2034 JULY CRUDE WAS OFF NINE CENTS A BARREL AND OUTER MONTHS WERE LOWER AS WELL JUNE HEATING OIL LOST JUST OVER HALF A PENNY 052 CENT A GALLON TO CLOSE AT 5591 CENTS WHILE GASOLINE ALSO FELL BY ROUGHLY THE SAME EXTENT JUNE GASOLINE SETTLED AT 6114 CENTS A GALLON 048 CENT LOWER LIVESTOCK HOG AND PORKBELLY FUTURES PRICES ARE EXPECTED TO CLIMB THIS MORNING ON LOWERTHANEXPECTED HOG SLAUGHTER AND A MILDLY BULLISH COLDSTORAGE REPORT HOG SLAUGHTER FOR THE FIRST TWO DAYS OF THIS WEEK IS ABOUT 4000 HEAD LOWER THAN IT WAS DURING THE SAME WEEK A YEAR AGO MOREOVER THE WEEKLY COLDSTORAGE REPORT WHICH WAS RELEASED AFTER TRADING YESTERDAY SHOWED NET INWARD MOVEMENT OF ONLY 940000 POUNDS OF FRESH PORK BELLIES AN INDICATION OF AMPLE DEMAND FOR BACON WHICH IS MADE FROM PORK BELLIES MANY ANALYSTS HAD BEEN EXPECTING INWARD MOVEMENT OF ONE MILLION TO TWO MILLION POUNDS OF PORK BELLIES THE COMBINATION OF THESE TWO THINGS IS LIABLE TO GIVE THE MARKET A LITTLE BOUNCE SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS AT THE CHICAGO MERCANTILE EXCHANGE YESTERDAY PORK BELLIES FOR JULY DELIVERY FELL 047 CENT TO 4197 CENTS A POUND 9305120029 930512 INTERNATIONAL PROCORDIA AB'S PROFIT ROSE 14 FOR QUARTER AFTER ONETIME GAIN SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM PROCORDIA AB SAID PRETAX PROFIT ROSE 14 FOR THE FIRST QUARTER BUOYED BY BIG ONETIME CAPITAL GAINS BUT OPERATING PROFIT FELL SHARPLY REFLECTING ANEMIC TOBACCO MARKETS AND SLOWING SALES OF SOME KEY PHARMACEUTICAL PRODUCTS THE SWEDISH FOOD AND DRUG CONCERN SAID PRETAX PROFIT CLIMBED TO 128 BILLION SWEDISH KRONOR 1725 MILLION FROM 112 BILLION KRONOR A YEAR EARLIER THE RECENT QUARTER INCLUDED HEFTY FOREIGNEXCHANGE TRADING PROFITS AS WELL AS A 382 MILLION KRONOR NONRECURRING CAPITAL GAIN FROM THE SALE OF PROCORDIA'S STAKE IN SCANDINAVIAN CONFECTIONARY GROUP FREIA MARABOU AS EXCLUDING THE CURRENCY WINDFALL AND ONETIME GAINS PROCORDIA'S OPERATING PROFIT PLUMMETED 28 THE BIGGEST DECLINE CAME AT THE UNITED BRANDS TOBACCO AND CONFECTIONARY UNIT WHERE OPERATING PROFIT PLUMMETED 43 TO 118 MILLION KRONOR MUCH OF THE UNIT'S OPERATING PROFIT REFLECTED THE ACQUISITION OF SWEDISH MATCH AB LAST YEAR UNITED BRANDS' SALES SURGED 47 TO 196 BILLION KRONOR HELPED BY THE SHARP DEPRECIATION OF SWEDISH CURRENCY IN RECENT MONTHS BUT A 20 DECLINE IN SWEDISH TOBACCO SALES COMBINED WITH WEAK DEMAND FOR CONFECTIONARY PRODUCTS WIPED OUT ALMOST ALL OF THE UNIT'S OPERATING PROFIT FROM CONTINUING OPERATIONS PROCORDIA SAID OPERATING PROFIT AT THE FLAGSHIP KABIPHARMACIA AB PHARMACEUTICAL UNIT MEANWHILE EDGED UP 4 TO 779 MILLION KRONOR ON A 16 RISE IN SALES TO 395 BILLION KRONOR BUT A SPOKESWOMAN ACKNOWLEDGED THAT CURRENCY FACTORS ACCOUNTED FOR A MAJORITY OF THE SALES GAIN PRICES DECLINED OVERALL DURING THE PERIOD THE COMPANY SAID 9305120027 930512 MARKETING & MEDIA FOX AND TCI SET NEW CABLE CHANNEL FOR TCI SUBSCRIBERS NEW YORK FOX INC AND CABLE OPERATOR TELECOMMUNICATIONS INC ARE EXPECTED TO ANNOUNCE TODAY THAT THEY WILL JOINTLY LAUNCH A FOX ENTERTAINMENT CABLE CHANNEL TO BE DISTRIBUTED TO TCI'S 10 MILLION CABLE SUBSCRIBERS IN EXCHANGE FOX A UNIT OF NEWS CORP AGREED TO ALLOW TCI TO CARRY THE PROGRAMMING OF ITS SEVEN TV STATIONS THE DEAL IS THE FIRST MAJOR AGREEMENT TO EMERGE AS PART OF NEW FEDERAL CABLE REGULATIONS THAT REQUIRE CABLE OPERATORS TO NEGOTIATE WITH BROADCASTERS OVER THE RIGHT TO CARRY LOCAL TV STATION SIGNALS THE PARTIES HAVE UNTIL JUNE 17 TO SETTLE ON ONE OF TWO OPTIONS THE FIRST IS SOCALLED MUST CARRY UNDER WHICH LOCAL STATIONS CAN DEMAND THAT CABLE SYSTEMS CARRY THEM FOR FREE THE SECOND OPTION IS RETRANSMISSION CONSENT UNDER WHICH STATIONS CAN DEMAND PAYMENT HOWEVER CABLE OPERATORS ALSO HAVE THE RIGHT TO DROP THE STATIONS IF THE TWO SIDES DON'T AGREE ON A FEE UNDER THE FOXTCI RETRANSMISSION COMPROMISE TCI WILL PAY FOX 25 CENTS A MONTH FOR EACH OF TCI'S 10 MILLION SUBSCRIBERS TO PARTIALLY FUND THE NEW CABLE CHANNEL FOX WILL PROGRAM THE CHANNEL WITH HALF ORIGINAL AND HALF REPEAT PROGRAMMING TO ENCOURAGE LOCAL STATIONS TO TAKE PART IN THE PACT FOX WILL PAY ANY OF ITS 133 AFFILIATES THAT JOIN THE PLAN FIVE CENTS MONTHLY FOR EACH CABLE SUBSCRIBER IN THEIR MARKETS PLUS SMALL EQUITY STAKES TOTALING A COLLECTIVE 25 OWNERSHIP IN THE NEW CHANNEL FOX AFFILIATES WILL ALSO BE GUARANTEED POPULAR CHANNELS BETWEEN ONE AND 13 ON TCI CABLE SYSTEMS AFFILIATES THAT DON'T PARTICIPATE IN THE PLAN WILL GET 75 CENTS A MONTH PER CABLE SUBSCRIBER BUT THEY MUST NEGOTIATE THEIR OWN RETRANSMISSION DEALS WITH CABLE OPERATORS 9305120026 930512 WHO'S NEWS AL LABORATORIES INC AL LABORATORIES INC FORT LEE NJ CYRILL R SIEWERT 49 YEARS OLD WAS NAMED PRESIDENT OF ORAL HEALTHCARE PRODUCTS A NEW POST MR SIEWERT PREVIOUSLY WAS PRESIDENT OF ORAL PHARMACEUTICALS AT COLGATEPALMOLIVE CO IN NEW YORK AL LABORATORIES IS A MULTINATIONAL MANUFACTURER AND MARKETER OF BRANDED PHARMACEUTICALS AND ANIMALHEALTH PRODUCTS 9305120025 930512 UNLIKELY FRIENDS SINOJAPANESE TRADE SOARS AS OLD ENEMIES CAUTIOUSLY EMBRACE CHEAP LABOR HUGE MARKET ATTRACT YEN TO CHINA BLURRING BITTER MEMORIES REINVASION OF A PORT CITY BY WALL STREET JOURNAL STAFF REPORTERS JACOB M SCHLESINGER IN TOKYO AND JAMES MCGREGOR IN BEIJING AN 82YEAROLD CHINESE COMMUNIST STILL FILLED WITH BITTER MEMORIES OF WORLD WAR II IS CHANGING HIS MIND ABOUT JAPANESE CAPITALISM AS IS MUCH OF CHINA WE HATED THE JAPANESE SAYS THE MAOJACKETED MAN WHO GIVES HIS NAME ONLY AS LIU STANDING IN THE INDUSTRIAL DISTRICT OF HIS HOMETOWN OF DALIAN IN NORTHEAST CHINA HE RECALLS HIS DAYS WORKING AT THE ONODA CEMENT CO FACTORY BUILT DURING JAPAN'S OCCUPATION OF THE CITY WE COULDN'T EVEN COME IN HERE HE SAYS ANGRILY POINTING TO THE HOUSES OF THE JAPANESE PLANT MANAGERS THESE DAYS THE AGING PLANT IS OWNED BY THE STATE AND CONTINUES TO PUMP OUT CEMENT THOUGH ITS ANCIENT BUILDINGS ARE CRUMBLING AND ITS SMOKESTACKS BELCH CEMENT DUST THAT CHOKES NEARBY TREES AND NEIGHBORHOODS BUT TIMES ARE CHANGING IN DALIAN CHINA'S RACE TO MODERNIZE HAS IT EMBRACING ITS OLD OCCUPIERS INCLUDING JAPAN'S ONODA CEMENT THE COMPANY LAST YEAR JOINED WITH CHINA TO BUILD A 188 MILLION PLANT NEARBY FILLED WITH THE LATEST HIGHTECH EQUIPMENT THE FACTORY MAKES MORE THAN TWICE AS MUCH CEMENT WITH JUST A QUARTER THE WORK FORCE AS THE ORIGINAL IT'S OK WITH ME THAT THE JAPANESE ARE COMING BACK TO DO BUSINESS IN CHINA SAYS MR LIU THEIR MONEY IS GOOD FOR CHINA IN TOKYO 1300 MILES AWAY KAORU TAGO A YOUNG ONODA EXECUTIVE LAUGHS HISTORY IS BEING REPEATED HE SAYS INDEED IT IS BUT WITH A BIG TWIST INSTEAD OF TROOPS JAPAN IS SENDING WAVES OF CAPITAL INTO CHINA AND IT IS GETTING A WARM WELCOME WE'RE SEEING A TREMENDOUS REVITALIZATION IN RELATIONS BETWEEN THE TWO COUNTRIES SAYS HIDEMI OOKA OF JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY OR MITI JAPANESE INVESTMENT IN CHINA DOUBLED TO ABOUT 1 BILLION IN THE FISCAL YEAR ENDED MARCH 31 ACCORDING TO JAPANESE INDUSTRY ESTIMATES WHILE SINOJAPANESE TRADE JUMPED 27 TO NEARLY 29 BILLION JAPAN HAS BEEN RUNNING A TRADE DEFICIT WITH CHINA THOUGH IT NARROWED A BIT LAST YEAR TO 5 BILLION MOST JAPANESE EXECUTIVES PREDICT THE GROWTH IN TRADE AND INVESTMENT WILL CONTINUE NEARLY EVERY DAY ANOTHER JAPANESE COMPANY DISCLOSES NEW PLANS FOR CHINA IN THE LAST FEW WEEKS NISSAN MOTOR CO AND SUZUKI MOTOR CO AGREED TO BUILD VEHICLES THERE KURABO INDUSTRIES LTD ANNOUNCED PLANS TO MAKE MEN'S SUITS IN HUBEI PROVINCE MITSUBISHI HEAVY INDUSTRIES LTD SAID IT WILL BUILD A POLYETHYLENE PLANT IN JILIAN PROVINCE AND THE MOS BURGER FASTFOOD COMPANY UNVEILED PLANS TO OPEN 3000 OUTLETS IN CHINA INVESTMENT IS EVEN FLOWING IN THE OTHER DIRECTION IN MARCH TWO CHINESEBACKED COMPANIES TOOK A 15 STAKE IN THE BIG JAPANESE RETAILER YAOHAN INTERNATIONAL CO CHINESE FIRMS ARE ALSO CONSIDERING BUYING PARTS OF A FACTORY NISSAN IS CLOSING IN JAPAN THE GROWING BUSINESS RELATIONSHIP IS YIELDING NONFINANCIAL BENEFITS TOO JAPAN AND CHINA ODDLY ENOUGH ARE STARTING TO LEND POLITICAL SUPPORT TO EACH OTHER WHEN JAPANESE PRIME MINISTER KIICHI MIYAZAWA WENT TO WASHINGTON LAST MONTH HE URGED PRESIDENT CLINTON NOT TO PUSH CHINA TOO HARD ON HUMAN RIGHTS WHEN JAPAN SENT TROOPS ABROAD THE FIRST TIME SINCE WORLD WAR II TO JOIN UNITED NATIONS PEACEKEEPING EFFORTS IN CAMBODIA MANY ASIANS COMPLAINED BUT THE CHINESE GOVERNMENT BARELY PEEPED THIS NEW FRIENDSHIP OF COURSE IS ONE OF CONVENIENCE JUST BELOW THE SURFACE LIE THE OLD FEARS THE OLD JEALOUSIES THE OLD MISTRUST WE EXPECT JAPAN TO BE A BIG POLITICAL POWER IN ASIA SAYS A RESEARCHER AT A CHINESE GOVERNMENT THINK TANK BUT WE WILL NOT TOLERATE JAPAN HAVING A BIG MILITARY HE SAYS IN TURN MANY JAPANESE WONDER WHETHER THEIR INVESTMENT WILL HELP STABILIZE THE UNPREDICTABLE NATION TO THE WEST OR EMPOWER IT TO JAPAN'S DETRIMENT SOME FEAR JAPAN'S HUGE CASH INFUSION MAY GET DIVERTED TO A MILITARY BUILDUP BY THE CHINESE SAYS KOJI KAKIZAWA PARLIAMENTARY VICE MINISTER FOR FOREIGN AFFAIRS JUST AS WORRISOME HE SAYS THE TECHNOLOGY TRANSFER NOW UNDER WAY MAY HELP CHINESE MANUFACTURERS GROW SO POWERFUL THAT THEY ONE DAY OVERTAKE THE JAPANESE FOR THE TIME BEING HOWEVER THE BUSINESS OF BEIJINGTOKYO TIES IS BUSINESS WITH THEIR USUAL FORESIGHT MANY JAPANESE COMPANIES BEGAN PREPARING YEARS AGO IN THE 1950S THE EMBERS OF BATTLE BARELY COOL ITOCHU CORP SET UP A SECRET DUMMY COMPANY TO REESTABLISH TIES WITH CHINA THE TRADING COMPANY'S PRESIDENT WENT ON A SPECIAL MISSION TO THE MAINLAND IN MARCH 1972 SIX MONTHS BEFORE JAPAN'S PRIME MINISTER VISITED TO RESTORE RELATIONS BANK OF TOKYO LTD OPENED THE FIRST FOREIGN BANKING OFFICE IN BEIJING IN 1980 NOMURA SECURITIES CO FOLLOWED TWO YEARS LATER WITH THE FIRST FOREIGN SECURITIES OFFICE AND UNDERWROTE COMMUNIST CHINA'S FIRST OVERSEAS BOND OFFERING NO FOREIGN GOVERNMENT ENDORSED DENG XIAOPING'S 1979 ECONOMIC REFORMS MORE WHOLEHEARTEDLY THAN JAPAN'S THE NEXT YEAR TOKYO OPENED A SPIGOT OF FINANCIAL AID THAT GUSHES TO THIS DAY JAPANESE GOVERNMENT INSTITUTIONS HAVE MADE OR PROMISED 33 TRILLION YEN IN LOANS TO CHINA IN THE PAST 13 YEARS EQUAL TO NEARLY 30 BILLION AT TODAY'S EXCHANGE RATES JAPAN ALSO PROVIDES HALF OF ALL DEVELOPMENT AID TO CHINA FROM INDIVIDUAL COUNTRIES IN THE 1980S JAPAN BECAME A CRUCIAL SOURCE OF FINANCING FOR CHINA'S OIL INDUSTRY IN 1990 JAPAN WAS THE FIRST MAJOR INDUSTRIAL NATION TO RESTORE CHINESE AID AFTER CUTOFFS FOLLOWING THE VIOLENT TIANANMEN SQUARE CRACKDOWN THE NEW TIES HAVE AT TIMES REQUIRED CONSIDERABLE PATIENCE ON BOTH SIDES JAPANESE EXPORTERS HIT A BONANZA IN CHINA IN THE EARLY 1980S SELLING SEVERAL BILLION DOLLARS WORTH OF AUTOS ALONE THEN CHINA SET HIGH DUTIES AND OTHER TRADE BARRIERS TO KEEP ITS HARD CURRENCY FROM BEING SPENT ON IMPORTS IT ALSO DEMANDED THAT FOREIGN SUPPLIERS MANUFACTURE IN CHINA AMERICAN TAIWANESE HONG KONG AND OVERSEAS CHINESE INVESTORS JUMPED IN IN THIS CASE JAPAN HELD BACK ITS BLUECHIP COMPANIES CONCENTRATING ON BUILDING A PRODUCTION BASE IN SOUTHEAST ASIA INSTEAD AS A RESULT AMERICAN CONSUMER PRODUCTS ARE NOW THE RAGE IN CHINA PROCTER & GAMBLE CO DOMINATES THE SHAMPOO MARKET MAXWELL HOUSE COFFEE AND HEINZ BABY FOOD ARE HOUSEHOLD NAMES WHILE JAPANESE MARKETERS LAG SOME JAPANESE EXECUTIVES SAY THEY DIDN'T BUILD PLANTS IN CHINA IN THE 1980S BECAUSE OF REGULATORY HASSLES AND WORRIES ABOUT CHINA'S STABILITY WHEN PRESSED HOWEVER MANY ADMIT THEY SIMPLY DIDN'T FEEL WELCOME MEMORIES OF THE WAR THEY SAY THE CHINESE OFTEN DO COMPLAIN THAT JAPAN HASN'T SUFFICIENTLY APOLOGIZED FOR ITS BRUTAL OCCUPATION THE JAPANESE GRUMBLE THAT THE CHINESE ARE ALWAYS DEMANDING APOLOGIES AND ALWAYS THROWING THE WAR IN THEIR FACE IN 1987 FOR EXAMPLE CHINA OPENED THE WAR OF RESISTANCE AGAINST JAPAN MUSEUM NEAR BEIJING NO MATTER THAT THE NATION WAS SIMULTANEOUSLY TRYING TO WOO JAPANESE INVESTMENT WHEN WE DO BUSINESS WITH CHINESE OFFICIALS THEY ARE VERY FRIENDLY AND ACCEPTING A JAPANESE BUSINESSMAN IN DALIAN SAYS BUT WHEN YOU LOOK AT THE GOVERNMENT'S PROPAGANDA ESPECIALLY THE MOVIES ON TELEVISION THAT SHOW JAPANESE SOLDIERS TORTURING AND KILLING CHINESE PEASANTS YOU SEE A DIFFERENT SIDE OF HOW THE CHINESE GOVERNMENT VIEWS JAPAN SITTING IN HIS TOKYO OFFICE ADORNED WITH CHINESE ARTIFACTS KAZUHIKO OTAKE OF INDUSTRIAL BANK OF JAPAN LTD'S CHINA DEPARTMENT RECOUNTS AN AWKWARD TRAIN RIDE HE TOOK OUT OF SHANGHAI A DECADE AGO WHEN THE THREE ELDERLY CHINESE SHARING THE BANKER'S COMPARTMENT DISCOVERED HIS NATIONALITY THEY COMPLAINED TO ME FOR FOUR TO FIVE HOURS HE SAYS ONE TOLD OF HOW THE JAPANESE ARMY SPLIT UP HIS FAMILY ANOTHER NAMED RELATIVES WHO DIED IN THE WAR AND THE OTHER SAID HE STILL CARRIED A BULLET IN HIS BODY FROM THE FIGHTING A SYMBOLIC TURNING POINT HOWEVER CAME LAST OCTOBER WHEN EMPEROR AKIHITO VISITED CHINA IN A TOAST HE EXPRESSED HIS SORROW FOR THE UNFORTUNATE PERIOD IN WHICH MY COUNTRY INFLICTED GREAT SUFFERINGS ON THE PEOPLE OF CHINA HIS HOSTS SAID IT WAS TIME TO LOOK TO THE FUTURE THE EVENT SEEMED TO GIVE VOICE TO THE REMARKABLE WARMING BETWEEN THE TWO NATIONS IN RECENT MONTHS IF THE RHETORIC SEEMED SUBDUED THE ECONOMIC IMPACT HAS BEEN ANYTHING BUT LAST YEAR JAPANESE COMPANIES ANNOUNCED 1800 INVESTMENT PROJECTS IN CHINA ABOUT THE SAME AS IN THE PREVIOUS 13 YEARS COMBINED ONODA CEMENT NOW PLANS TO BUILD A SECOND NEW PLANT NEXT YEAR IN NANJING SITE OF A 1937 MASSACRE BY JAPANESE TROOPS THE AVERAGE SIZE OF JAPANESE INVESTMENTS HAS RISEN ABOUT 40 SINCE THE MID1980S THIS YEAR THE NUMBERS AND SCALE ARE EXPECTED TO RISE AGAIN MANY JAPANESE COMPANIES SAY SHIFTING ECONOMIC TIDES NOW LEAVE THEM LITTLE CHOICE BUT TO GO TO CHINA THE YEN'S APPRECIATION OVER THE YEARS MAKES GOODS PRODUCED ABROAD CHEAPER TO BUY IN JAPAN AND JAPANESEMADE PRODUCTS MORE COSTLY FOR EXPORT CUSTOMERS AND SOUTHEAST ASIA HAS BECOME LESS APPEALING FOR OFFSHORE PRODUCTION BECAUSE OF RISING LABOR COSTS SO JAPANESE COMPANIES ARE STARTING TO INTEGRATE CHINESE FACTORIES INTO THEIR ASIAN PRODUCTION NETWORKS IN APRIL TOSHIBA CORP STARTED MAKING PARTS IN NORTHERN CHINA FOR TELEVISION PICTURE TUBES THE PARTS GET SHIPPED TO A THAI FACTORY WHICH ASSEMBLES THE TUBES AND SENDS THEM TO A SINGAPORE PLANT WHICH BUILDS THE TV SETS THE SETS ARE THEN SOLD THROUGHOUT ASIA BROADER TRADE TIES ARE ALSO DEEPENING IN 1985 JAPAN MAINLY BOUGHT RAW MATERIALS SUCH AS OIL FROM CHINA NOW THE JAPANESE ARE BUYING MORE FINISHED GOODS SUCH AS TEXTILES AS WELL AS PARTS FROM JAPANESEAFFILIATED FACTORIES JAPAN'S STEEL EXPORTS TO CHINA SOARED 107 IN THE FIRST THREE MONTHS OF 1993 THE NEXT FRONTIER FOR CORPORATE JAPAN WILL BE SELLING DIRECTLY TO CHINA'S 12 BILLION PEOPLE YAOHAN OPENED A 19000SQUAREMETER DEPARTMENT STORE IN CHINA IN DECEMBER AND PLANS 1000 CHINESE SUPERMARKETS BY 2010 MOTOAKI SAIGOH DIRECTOR OF MITSUI & CO'S DALIAN OFFICE SAYS THE MAIN PURPOSE OF JAPANESE INVESTMENT NOW IS TO REACH THE CHINESE DOMESTIC MARKET THAT IS THE KEY SAYS MR SAIGOH NOWHERE IS JAPAN'S GROWING IMPRINT MORE VISIBLE THAN IN DALIAN A PORT CITY JAPAN SEIZED IN 1905 AFTER DEFEATING THE OCCUPYING RUSSIAN FORCES IN THE RUSSOJAPANESE WAR ABOUT 1000 JAPANESE NOW LIVE THERE TWICE AS MANY AS FOUR YEARS AGO THOUGH NOTHING LIKE THE 300000 WHO MADE IT THEIR HOME DURING WORLD WAR II ABOUT 40 OF DALIAN HARBOR'S INTERNATIONAL TRAFFIC IS TRADE WITH JAPAN AND 40 OF THE FOREIGN INVESTMENT IN DALIAN IS JAPANESE DALIAN IS THE MOST COMFORTABLE PLACE IN CHINA FOR JAPANESE PEOPLE SAYS TAKESHI KOJIMA MANAGER OF THE NEW ONODA CEMENT FACTORY MANY RESIDENTS SPEAK JAPANESE NEON BILLBOARDS ON OVERPASSES ADVERTISE THE SHIMIZU JAPANESE RESTAURANT WHICH HAS FIVE LOCAL OUTLETS IN KARAOKE BARS CHINESE HOSTESSES SIT AND HOLD HANDS WITH JAPANESE BUSINESSMEN AND SING LOVE SONGS TO THEM IN JAPANESE DRIVING ACROSS TOWN MITSUI'S MR SAIGOH POINTS WITH PRIDE TO THE 10 MILLION TELEVISION TOWER THAT LOOMS OVER THE CITY LOOK AT THAT HE SAYS EXCITEDLY THAT WAS MITSUI AND NIPPON STEEL WHO PUT THAT TOGETHER OF COURSE THERE ARE STILL PLENTY OF HITCHES IN THE NEW RELATIONSHIP MR KOJIMA CONTENDS ONODA CEMENT'S NEW FACTORY IS ONLY HALF AS EFFICIENT AS IT WOULD BE IN JAPAN HEADQUARTERS WILL SOON DISPATCH 10 MORE JAPANESE ENGINEERS TO TRAIN CHINESE WORKERS WHO HE SAYS SHUN ROUTINE MAINTENANCE THE PROBLEM IS EVIDENT IN THE BROKEN WINDOWS AT THE PLANT'S ROCKCRUSHING FACILITY AN UNTHINKABLE SIGHT BACK HOME OTHER JAPANESE COMPANIES COMPLAIN OF CAPRICIOUS RULES UNEXPECTED FEES AND TROUBLE GETTING MONEY OUT OF LOCAL BUSINESS PARTNERS THEIR SOLUTION DO BUSINESS IN CHINA BUT ISOLATE ONESELF AS MUCH AS POSSIBLE BY CREATING A SMALL OASIS OF JAPAN INC IN NOVEMBER A MITICOORDINATED CONSORTIUM WILL OPEN A SPECIAL INDUSTRIAL PARK IN DALIAN AS MANY AS 100 JAPANESE COMPANIES ARE EXPECTED TO INVEST ABOUT 600 MILLION IN THE PROJECT OVER THE NEXT SEVERAL YEARS THE JAPANESE GOVERNMENT IS KICKING IN PART OF THE STARTUP COST AT FIRST CHINESE OFFICIALS RESISTED THE IDEA BUT IN THIS NEW ERA THEY WERE PERSUADED TO RELENT HISTORY IS HISTORY AND NOW IS NOW SAYS BO XILAI A CLEANCUT 44YEAROLD RECENTLY APPOINTED DALIAN'S MAYOR THE WAR BELONGS TO THE PREVIOUS GENERATION WE SHOULD NOT SEEK REVENGE OR EXPRESS HATRED BECAUSE OF LEFTOVER FEUDS BESIDES THE DALIAN CITY GOVERNMENT GOT 37 MILLION FOR THE LAND 9305120024 930512 OTC FOCUS MARKET EKES OUT SMALL GAIN IN WAKE OF NEWS THAT HURT TECHNOLOGY STOCKS BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS MANAGED A LASTMINUTE TINY GAIN AFTER A LACKLUSTER SESSION IN WHICH TECHNOLOGY STOCKS FALTERED AFTER DISCOURAGING NEWS ON THE MONTHLY RATIO OF NEW ORDERS TO SHIPMENTS IN THE SEMICONDUCTOR INDUSTRY THE NASDAQ COMPOSITE INDEX CLOSED THE TRADING SESSION WITH A GAIN OF 024 POINTS OR 004 AT 68306 NATIONAL MARKET SYSTEM VOLUME WAS 186356900 SHARES UP FROM MONDAY'S 169450300 ADVANCERS LED DECLINERS 1365 TO 1304 A NUMBER OF MARKET PLAYERS ATTRIBUTED THE SOFTNESS IN THE NASDAQ MARKET TO ITS LEADERS THE TECHNOLOGY ISSUES LATE MONDAY THE SEMICONDUCTOR INDUSTRY ASSOCIATION REPORTED THAT THE INDUSTRY'S BOOKTOBILL INDICATOR FOR APRIL WAS 113 DOWN FROM 117 IN MARCH THE APRIL BOOKTOBILL INDICATOR MEANS THAT 113 OF NEW ORDERS WERE RECEIVED IN THE INDUSTRY FOR EVERY 100 OF PRODUCTS SHIPPED INDICATING THAT ORDERS HAVE SLOWED FROM MARCH'S PACE THE NEWS CARRIED OVER TO YESTERDAY'S TRADING SESSION IN WHICH MANY TECHNOLOGY ISSUES SLID AND THE INDEX STAYED DOWN THROUGHOUT THE DAY THE TECHNOLOGY STOCKS DRAGGED DOWN THE MARKET ON THE BOOKTOBILL REPORT SAID TOM CONNELL HEAD OF NASDAQ TRADING AT GRUNTAL & CO ONE OF THE MOST ACTIVE ISSUES INTEL PLUNGED 3 TO 99 1/2 KIDDER PEABODY & CO LOWERED ITS INVESTMENT RATING ON INTEL TO ACCUMULATE FROM BUY MICROSOFT LOST 1 3/8 TO 87 3/4 MONDAY ALEX BROWN & SONS UPGRADED MICROSOFT TO STRONG BUY FROM BUY AND PEOPLE TOOK PROFITS TODAY SAID PAUL STANTON HEAD OF OTC TRADING AT JOHNSTON LEMON & CO THE STOCK HAD RISEN 2 1/8 YESTERDAY APPLE COMPUTER DIPPED 1/2 TO 54 1/2 NOVELL EASED 7/8 TO 29 3/8 APPLE COMPUTER SAID IT BEGAN DELIVERY OF NEW SOFTWARE TO 15000 APPLE DEVELOPER PROGRAM MEMBERS NOVELL UNVEILED A SOFTWARE DEVELOPERS KIT CATALYST SEMICONDUCTOR'S INITIAL 25 MILLION COMMON SHARES WERE PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES IT CLOSED UP 2 1/2 TO 13 1/2 EVERGREEN MEDIA CLOSED UP 1 3/8 TO 17 3/8 AN INITIAL 35 MILLION COMMON SHARES WERE PRICED YESTERDAY AT 16 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE THAT GIVES SOME GOOD FIRE TO THE NEW ISSUES MARKET SAID ROBERT PADALA SENIOR VICE PRESIDENT OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE OVERTHECOUNTER STOCKS TRAILED THEIR COUNTERPARTS ON THE BIG BOARD THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 085 POINT OR 035 TO CLOSE AT 24588 THE DOW JONES INDUSTRIALS ENDED 2547 POINTS OR 074 HIGHER TODAY AT 346875 MARKET OBSERVERS WERE AT A LOSS TO EXPLAIN TODAY'S LACKLUSTER ACTIVITY SOME SAID INVESTORS WERE STILL NERVOUS ABOUT AN OVERPRICED MARKET AND WERE WAITING IT OUT ON THE SIDELINES BUT ONE MONEY MANAGER GREGORY KUHN WHO HEADS KUHN ASSET MANAGEMENT IN EASTON PA SAID HE THINKS NASDAQ STOCKS WILL REACH NEW HIGHS IN THE NEXT THREE MONTHS HE CITED ZOLL MEDICAL OUTBACK STEAKHOUSE AND GTI CORP AS BEING AMONG THE NASDAQ ISSUES THAT HE THINKS WILL CLIMB TO ALLTIME HIGHS ELSEWHERE ON THE NASDAQ GOVERNMENT TECHNOLOGY SERVICES GAINED 1/2 TO 9 1/4 A JUDGE REJECTED CHALLENGES TO A 745 MILLION AIR FORCE CONTRACT THAT THE COMPANY WILL SHARE WITH ZENITH DATA SYSTEMS ZOOM TELEPHONICS JUMPED 1 3/4 TO 15 1/4 ADVEST INITIATED COVERAGE WITH A BUY RATING AND SAID ZOOM IS A LEADER IN SENDRECEIVE FAX MODEMS FOR PERSONAL COMPUTERS ADVEST ESTIMATES ZOOM'S 1993 EARNINGS WILL BE 85 CENTS A SHARE UP FROM 62 CENTS IN 1992 AUTOTOTE CLIMBED 1 3/4 TO 38 1/4 THE MAKER OF WAGERING EQUIPMENT FOR HORSE AND GREYHOUND TRACKS SAID IT WILL BUY AND OPERATE CONNECTICUT'S OFFTRACK BETTING SYSTEM WHICH HANDLES ABOUT 150 MILLION ANNUALLY KNOWLEDGEWARE LOST 1 1/8 TO 9 7/8 AFTER THE COMPUTER SOFTWARE MAKER POSTED A THIRDQUARTER LOSS OF 234 A SHARE ON RESTRUCTURING CHARGES OF NEARLY 22 MILLION THE COMPANY EARNED 12 CENTS A YEAR AGO ACCLAIM ENTERTAINMENT SURGED 1 1/4 TO 23 THE OYSTER BAY NY SOFTWARE DEVELOPER SAID IT CREATED A EUROPEAN DIVISION TO MANAGE ITS UK GERMANY AND FRANCE SUBSIDIARIES SPECTRUM INFORMATION TECHNOLOGIES GAINED 11/16 TO 4 3/4 AFTER ANNOUNCING THAT AMERICAN TELEPHONE & TELEGRAPH AGREED TO LICENSE SPECTRUM'S TECHNOLOGY FOR SENDING DATA OVER CELLULAR NETWORKS AT&T ALSO SAID IT MIGHT INVEST MORE THAN 10 MILLION IN SPECTRUM BORLAND ADDED 1/4 TO 26 1/2 AFTER MONTGOMERY SECURITIES ANALYST BETTY LYTER RECENTLY A SKEPTIC OF BORLAND UPGRADED HER INVESTMENT RATING TO BUY FROM SELL AND INDICATED THAT MOMENTUM IS SHIFTING IN BORLAND'S FAVOR BORLAND'S STOCK HAS CLIMBED 50 FROM ITS 52WEEK LOW OF 17 1/2 ON JAN 14 9305120023 930512 NASD PANEL ORDERS MERRILL LYNCH TO PAY 195000 TO COUPLE WASHINGTON A NATIONAL ASSOCIATION OF SECURITIES DEALERS ARBITRATION PANEL ORDERED MERRILL LYNCH & CO TO PAY 195000 TO A COUPLE WHO CHARGED THAT THE COMPANY CHURNED THEIR RETIREMENT ACCOUNT IN AN APRIL 29 DECISION THE NASD PANEL ORDERED MERRILL LYNCH TO PAY THE SUM TO DAVID L BERENS 72 YEARS OLD AND HIS WIFE SARAH 72 OF THE BUFFALO NY SUBURB OF KENMORE THE COUPLE CLAIMED IN COURT PAPERS THAT MICHAEL C FITCH A MERRILL LYNCH BROKER IN BUFFALO SQUANDERED SOME OF THEIR 15 MILLION RETIREMENT FUND BY MAKING TOO MANY INVESTMENTS WE FIND THE ARBITRATION AWARD OUTRAGEOUS SAID A MERRILL LYNCH SPOKESMAN THE CLIENTS LIKE MILLIONS OF OTHERS DURING THE 1987 CRASH SUFFERED FINANCIAL REVERSES AND THROUGH CAREFUL MANAGEMENT OF THEIR ACCOUNT BY MR FITCH THEY WERE ABLE TO RECOUP ALL LOSSES IN TWO YEARS HE ADDED MERRILL LYNCH HASN'T YET DECIDED WHETHER IT WILL APPEAL THE AWARD 9305120022 930512 INTERNATIONAL BRIEF GENCOR LTD SOUTH AFRICAN CONCERN PLANS TO SHED NONMINING INTERESTS SOUTH AFRICAN MINING HOUSE GENCOR LTD SAID IT WILL SHED ITS NONMINING ASSETS TO UNLOCK SHAREHOLDER WEALTH AND IMPROVE FOCUS FOR OPERATIONS AND INVESTORS AT THE SAME TIME GENCOR SAID IT WAS IN NEGOTIATIONS TO BUY A LARGE PART OF ROYAL DUTCH/SHELL GROUP'S METAL ASSETS SHELL THE ANGLODUTCH OIL AND GAS CONCERN STRESSED THAT NEGOTIATIONS ARE EXPECTED TO LAST FOR SEVERAL MONTHS AND THAT NO FIRM AGREEMENTS HAVE BEEN REACHED GENCOR IS A MAJOR PRODUCER OF GOLD PLATINUM COAL MANGANESE CHROME FERROALLOYS STAINLESS STEEL ALUMINIUM TITANIUM MINERALS AND GRANITE THE COMPANIES THAT WILL BE LET GO INCLUDE PAPER PRODUCER SAPPI LTD OIL COMPANY ENGEN LTD INVESTMENT GROUP GENBEL INVESTMENTS LTD AND MANUFACTURING CONCERN MALBAK LTD 9305120021 930512 BUSINESS BRIEF HECHINGER CO COMPANY PLANS TO CLOSE TRIANGLE BUILDING CENTERS HECHINGER CO SAID IT WILL CLOSE ITS SIXSTORE TRIANGLE BUILDING CENTERS DIVISION BY THE END OF THE THIRD QUARTER COSTS ASSOCIATED WITH THE CLOSING WILL BE COVERED BY A RESERVE TAKEN BY THE COMPANY DURING THE FIRST QUARTER OF 1992 THE CLOSING WON'T HAVE A MATERIAL IMPACT ON ITS CONTINUING OPERATIONS HECHINGER SAID IN LANDOVER MD HECHINGER ADDED THAT IT WILL CONVERT THE WILKESBARRE PA TRIANGLE STORE INTO A HECHINGER HOME PROJECT CENTER TRIANGLE EMPLOYEES WILL BE OFFERED OPPORTUNITIES WITH THE HECHINGER STORES OR HOME QUARTERS WAREHOUSE DIVISIONS OR WILL RECEIVE SEVERANCE PACKAGES AND OUTPLACEMENT ASSISTANCE WILLIAM VAN NOTE PRESIDENT OF TRIANGLE BUILDING CENTERS WILL BECOME SENIOR VICE PRESIDENT STORE OPERATIONS OF HOME QUARTERS WAREHOUSE 9305120020 930512 BUSINESS BRIEF POLAROID CORP PLAN TO NEARLY DOUBLE SALES BY 2000 UNVEILED BY FIRM POLAROID CORP SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER I MACALLISTER BOOTH OUTLINED A LONGTERM STRATEGY FOR THE CAMBRIDGE MASS COMPANY AT ITS ANNUAL MEETING THAT INCLUDES A GOAL OF NEARLY DOUBLING SALES BY 2000 THE COMPANY QUOTED MR BOOTH AS SAYING THAT TO ACHIEVE THE SALES GOAL THE INSTANT PHOTOGRAPHY CONCERN MUST INCREASE REVENUE BY 7 OR MORE ANNUALLY HE ADDED THAT POLAROID HOPES TO BOOST EARNINGS BEFORE INTEREST AND TAXES BY 12 TO 14 A YEAR MR BOOTH SAID THE PLAN CALLS FOR POLAROID TO PURSUE THREE AREAS PHOTOGRAPHIC IMAGING HIGH RESOLUTION IMAGING AND ELECTRONIC IMAGING SYSTEMS COMBINED THE AREAS WOULD INVOLVE POLAROID IN ABOUT 30 OF THE OVERALL IMAGING MARKET POLAROID RECENTLY HAS STRUGGLED WITH SLUGGISH EUROPEAN SALES EXPENSES RELATED TO NEW PRODUCTS AND A CHANGE IN SALES MIX THE COMPANY SAID IT EXPECTED ITS 1993 OPERATING PROFIT BEFORE ANTICIPATED CHARGES TO BE ABOUT THE SAME AS ITS 1992 OPERATING PROFIT OF 2138 MILLION IN 1992 NET INCOME WAS 99 MILLION OR 206 A SHARE ON SALES OF 215 BILLION 9305120019 930512 BUSINESS BRIEF LIMITED REPORTS 14 DECLINE IN PROFIT AS ANNTAYLOR POSTS 57 SURGE IN NET TWO NOTED WOMEN'S FASHION RETAILERS REPORTED MIXED EARNINGS RESULTS FOR THEIR FISCAL FIRST QUARTERS LIMITED INC POSTED A 14 PROFIT DECLINE ON WEAKER SALES AT ITS LIMITED AND LERNER DIVISIONS WHILE ANNTAYLOR STORES CORP SAW NET INCOME SURGE 57 AS ITS SPRING FASHIONS CAUGHT ON IN THE FISCAL QUARTER ENDED APRIL 30 COLUMBUS OHIOBASED LIMITED SAID NET INCOME FELL TO 442 MILLION OR 12 CENTS A SHARE FROM 515 MILLION OR 14 CENTS A SHARE A YEAR EARLIER WHEN THE COMPANY HAD A PRETAX GAIN OF 9 MILLION FROM THE INITIAL PUBLIC OFFERING OF UNITED RETAIL GROUP A GROUP OF STORES THAT THE COMPANY SPUN OFF IN 1992 LIMITED'S SALES ROSE 7 TO 152 BILLION FROM 142 BILLION IN THE YEAREARLIER QUARTER IN A STATEMENT LIMITED CHAIRMAN LESLIE H WEXNER SAID HE WAS NOT PLEASED AT ALL WITH OUR OVERALL RESULTS BUT HE SINGLED OUT THE HEALTHY PERFORMANCE OF THE COMPANY'S EXPRESS DIVISION WHICH ACCOUNTS FOR ABOUT 18 OF THE COMPANY'S SALES AND 30 OF ITS PROFITS LIMITED IS STRUGGLING TO REPOSITION ITS FLAGSHIP LIMITED AND LERNER DIVISIONS WHICH CONTINUE TO UNDERPERFORM THE MISSING INGREDIENT AT BOTH LIMITED AND LERNER IS ADVERTISING AND MARKETING SAID LYNN SAWYER AN ANALYST AT NATWEST SECURITIES CORP THEY AREN'T COMMUNICATING WITH THEIR TARGET CUSTOMERS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE LIMITED SHARES CLOSED YESTERDAY AT 2275 DOWN 375 CENTS ANALYSTS SAID ANNTAYLOR'S STRONG SHOWING IS REFLECTED IN ITS HIGHER GROSS MARGINS AND LOWER MARKDOWNS AT RETAIL A SHARP TURNAROUND FROM A YEAR AGO THIS IS EVIDENCE THAT WOMEN ARE RESPONDING VERY FAVORABLY TO THE NEW FASHION AND QUALITY DIRECTION AT ANNTAYLOR SAID JEFFREY EDELMAN AN ANALYST AT CJ LAWRENCE INC WHO ADDED I THINK THAT THEY'VE DEFINITELY TURNED THE CORNER 9305120018 930512 WHO'S NEWS JOSEPH ABBOUD CO JOSEPH ABBOUD CO NEW YORK ROBERT J WICHSER 43 YEARS OLD WAS APPOINTED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS APPAREL DESIGNER AND MARKETER HE SUCCEEDS WALTER GREEN WHO RESIGNED IN DECEMBER MR WICHSER JOINS THE COMPANY FROM CRYSTAL BRANDS INC WHERE HE WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS WOMEN'S APPAREL GROUP SINCE 1986 JOSEPH ABBOUD CO WAS FORMED IN 1988 AS A JOINT VENTURE BETWEEN THE DESIGNER JOSEPH ABBOUD AND GFT USA A SUBSIDIARY OF GRUPPO GFT A TURIN ITALY APPAREL PRODUCER 9305120017 930512 BUSINESS BRIEF NINTENDO CO NEWGAME SOFTWARE PRICES TO BE RAISED 20 IN US VIDEOGAME GIANT NINTENDO CO OF TOKYO SAID IT WILL RAISE THE PRICES OF ITS POPULAR GAME SOFTWARE 20 IN THE US BECAUSE OF THE YEN'S RECENT APPRECIATION A COMPANY SPOKESWOMAN SAID NINTENDO WOULD PRICE NEW GAME TITLES FOR ITS 16BIT GAME MACHINE SOLD IN THE US AS SUPER NINTENDO AT ABOUT 60 UP FROM 50 SHE DENIED HOWEVER THAT THE HIGH YEN WOULD AFFECT THE COMPANY'S SALES SAYING WE WOULDN'T LAUNCH PRODUCTS USERS WOULDN'T PAY 60 FOR THE COMPANY ALSO INTENDS TO RESTRICT ITS EXPORTS AS A PERCENTAGE OF TOTAL REVENUE IN THE COMING YEAR AIMING FOR EXPORTS TO ACCOUNT FOR 55 OF TOTAL SALES IN THE YEAR ENDED MARCH 31 1992 NINTENDO'S EXPORTS ACCOUNTED FOR 61 OF ITS TOTAL SALES THE COMPANY HASN'T YET RELEASED EXPORT FIGURES FOR ITS MOST RECENT FISCAL YEAR EARLY WEDNESDAY IN TOKYO THE YEN WAS TRADING AT ABOUT 11117 TO THE DOLLAR A YEAR AGO IT WAS TRADING AT 13260 TO THE DOLLAR 9305120016 930512 LETTERS TO THE EDITOR LET'S FACE SOME FACTS ABOUT VEHICLE FATALITIES IN AN EDITORIAL FLIGHT OF FANTASY CLINTONITES RAM GM APRIL 14 YOU RUN ROUGHSHOD OVER THE FACTS DESPITE YOUR CLAIM TO THE CONTRARY DRIVERS ARE 30 MORE LIKELY TO DIE IN A LARGE GM PICKUP THAN IN A DODGE AND 4 MORE LIKELY THAN IN A FORD IN ANY CRASH AND 240 MORE LIKELY TO DIE IN A SIDEFIRE CRASH TRUCK OWNERS CONCERNED ABOUT OVERALL SAFETY HAVE A CLEAR CHOICE BUY A DODGE YOU ESPOUSE A RADICAL DOCTRINE OF SAFETY THAT A VEHICLE WITH A LOWER FATALITY RATE THAN AVERAGE SHOULD NOT BE RECALLED IF THIS WERE SO THERE WOULD NEVER BE A SCHOOLBUS RECALL BECAUSE THEY HAVE THE LOWEST FATALITY RATE OF ALL GM RECALLED A HALFMILLION LARGE STATION WAGONS AFTER A CHILD SUFFOCATED YOU WOULD DEFEND NO RECALL BECAUSE OLDSMOBILE CUSTOM CRUISER WAGONS HAVE A 07 DEATHS/10000 VEHICLES COMPARED WITH 20 FOR ALL CARS WHAT HAPPENS TO VEHICLES WITH HIGH DEATH RATES SUCH AS THE CHEVROLET CORVETTE AT 47 UNDER THE JOURNAL DOCTRINE A COMPLETE BAN SPECIFIC DEFECTS SELDOM INFLUENCE A VEHICLE'S OVERALL FATALITY RATE SINCE FIRES ACCOUNT FOR ONLY 04 OF ALL VEHICLE DEATHS A FIVEFOLD INCREASE IN THE AVERAGE CAR'S FIRE DEATH RATE WOULD INCREASE ITS OVERALL DEATH RATE ONLY FROM 200 TO 203 YOU WOULD EXCUSE EVEN THE INFAMOUS FORD PINTO FROM RECALL FOR SUCH A SMALL CHANGE GM'S PICKUPS HAVE KILLED 10 TIMES AS MANY PEOPLE IN FIRE CRASHES AS THE PINTO YOU CLAIM THE CENTER FOR AUTO SAFETY CAS HAS AN IDEOLOGICAL HOSTILITY TO BIG BUSINESS HOW DO YOU SQUARE THIS ALLEGATION WITH OUR COOPERATIVE CRASH TEST WITH CHRYSLER OF ITS 1993 L/H MODELS WHICH GOT MAJOR NATIONAL COVERAGE CAS IS NOT HOSTILE TO BIG BUSINESS IT IS HOSTILE TO BAD BUSINESS SUCH AS GM'S REFUSAL TO RECALL ITS PICKUPS WHICH COULD SAVE MORE THAN 1000 LIVES AND INJURIES AND GM'S REPUTATION AT A COST OF LESS THAN 100 PER TRUCK 9305120015 930512 WHO'S NEWS MINNESOTA POWER & LIGHT CO MINNESOTA POWER & LIGHT CO DULUTH MINN PAULA F MCQUEEN 46 YEARS OLD PRESIDENT AND TREASURERSECRETARY OF PGI INC A FLORIDA RESIDENTIAL DEVELOPMENT CONCERN WAS ELECTED A DIRECTOR OF THIS UTILITY 9305120014 930512 BUSINESS BRIEF AMERICAN FINANCIAL ENTERPRISES INC COMPANY PLANS TO SELL SHARES OF PENN CENTRAL COMMON AMERICAN FINANCIAL ENTERPRISES INC CINCINNATI SAID IT PLANS TO SELL FOUR MILLION SHARES OF PENN CENTRAL CORP COMMON STOCK IN A SECONDARY OFFERING AMERICAN FINANCIAL ENTERPRISES SAID IT WILL USE THE PROCEEDS TO REDUCE ITS 160 MILLION IN PRIVATE INSTITUTIONAL AND BANK DEBT WHICH MATURES LATER THIS YEAR THE INVESTMENT COMPANY EXPECTS IT WILL NEGOTIATE A NEW FINANCING AGREEMENT WITH BANKS OR OTHER LENDERS FOR THE PORTION OF ITS DEBT THAT REMAINS AFTER THE SALE AMERICAN FINANCIAL ENTERPRISES ADDED THAT IT DOESN'T EXPECT TO REALIZE A SIGNIFICANT LOSS OR GAIN ON THE SALE AMERICAN FINANCIAL ENTERPRISES OWNS 144 MILLION SHARES OR 32 OF PENN CENTRAL'S COMMON STOCK AFTER THE OFFERING ITS STAKE WILL FALL TO 23 AMERICAN FINANCIAL ENTERPRISES IS 83 OWNED BY AMERICAN FINANCIAL CORP WHICH BENEFICIALLY OWNS 51 OF PENN CENTRAL'S 454 MILLION COMMON SHARES OUTSTANDING PENN CENTRAL A SPECIALTY PROPERTY AND CASUALTY INSURANCE CONCERN SAID IT WILL FILE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE OFFERING 9305120013 930512 WHO'S NEWS HEALTH O METER PRODUCTS INC HEALTH O METER PRODUCTS INC BRIDGEVIEW ILL MALCOLM CANDLISH 57 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BRK GROUP INC WAS ELECTED A DIRECTOR OF THIS SCALES MAKER INCREASING THE BOARD TO SEVEN MEMBERS 9305120012 930512 WHAT'S NEWS BUSINESS AND FINANCE HEALTH INSURERS ARE LIKELY TO FACE INTERIM FEDERAL CONTROLS DESIGNED TO ENSURE THAT THEY DON'T JACK UP PREMIUMS OR DUMP PEOPLE FROM THEIR ROLLS BEFORE A NEW HEALTHCARE SYSTEM IS IN PLACE CLINTON AIDES SAY THE CONTROLS WOULD BUILD ON REGULATIONS ALREADY USED BY MANY STATES LIFE INSURERS POSTED YIELDS AVERAGING 817 ON THEIR INVESTMENTS LAST YEAR DOWN FROM 863 IN 1991 MARKING THE BIGGEST DECLINE SINCE THE 1930S THE LOWER YIELDS ARE LIKELY TO RESULT IN REDUCED DIVIDENDS FOR POLICYHOLDERS STOCKS RALLIED AMID RELIEF OVER THE SUCCESS OF A TREASURY NOTE AUCTION BOND PRICES HELD STEADY AND THE DOLLAR DECLINED THE DOW JONES INDUSTRIALS CLIMBED 2547 POINTS TO 346875 LESS THAN 10 POINTS SHY OF ITS RECORD HIGH AT&T REACHED AN AGREEMENT TO ALLOW IT TO USE SPECTRUM INFORMATION TECHNOLOGIES' PATENTS FOR TRANSMITTING DATA OVER CELLULAR PHONE NETWORKS AT&T AFFILIATES INCLUDING MCCAW CELLULAR ARE INCLUDED IN THE AGREEMENT MERRILL LYNCH PLANS TO STOP OPERATING ITS OWN LEVERAGED BUYOUT FUNDS IN LINE WITH ITS POLICY OF REDUCING ILLIQUID LONGTERM INVESTMENTS AS A RESULT TOP MANAGERS OF MERRILL'S BUYOUT UNIT ARE QUITTING TO START THEIR OWN FUND THE WHITE HOUSE IS TRYING TO SALVAGE A JOBS BILL THAT WOULD PUMP AS MUCH AS 4 BILLION INTO PUBLIC WORKS PROGRAMS THE SPENDING WOULD BE OFFSET BY CUTTING ACROSS THE BOARD FROM DOMESTIC AND DEFENSE APPROPRIATIONS THE FDIC SCALED BACK PROPOSED AUDIT RULES FOR BANKS AND THRIFTS THE GAO SAID THE CHANGES WOULD DILUTE THE EFFECTIVENESS OF A 1991 BANKING LAW SEPARATELY THE FDIC REDUCED THE SCOPE OF DEPOSIT INSURANCE COVERAGE FOR CERTAIN RETIREMENT ACCOUNTS MCDONNELL DOUGLAS WAS WARNED BY THE PENTAGON THAT IT MAY CANCEL THE C17 CARGO JET UNLESS MCDONNELL TAKES IMMEDIATE AGGRESSIVE ACTION TO IMPROVE THE PROGRAM'S MANAGEMENT CLINTON'S PROPOSAL TO REDUCE TAXES PAID BY SOME BIG CAPITALINTENSIVE COMPANIES IS TURNING OUT TO BE FAR MORE COSTLY THAN FIRST REALIZED SPARKING ACCUSATIONS THAT THE MOVE WOULD GUT A KEY FEATURE OF A 1986 TAX LAW BOEING IS EXPECTED TO ANNOUNCE TODAY AN ORDER FOR AS MANY AS 100 JETLINERS FOR MORE THAN 4 BILLION FROM CONTINENTAL AIRLINES WHICH JUST EMERGED FROM BANKRUPTCY COURT REED ELSEVIER AGREED TO BUY THE LATE ROBERT MAXWELL'S PUBLISHER OF AIRLINE GUIDES FOR 425 MILLION THE BRITISHDUTCH BUYER NEGOTIATED THE PURCHASE WITH MAXWELL COMMUNICATION'S COURTAPPOINTED ADMINISTRATORS PNC BANK AGREED TO BUY SEARS'S MORTGAGE BANKING UNIT FOR 328 MILLION QUADRUPLING THE PITTSBURGH BANK'S MORTGAGE SERVICING BUSINESS JAPAN ACCUSED THE US AND OTHER COUNTRIES OF UNFAIR TRADE POLICIES IN PARTICULAR ASSAILING PENALTIES UNILATERALLY IMPOSED BY WASHINGTON ON TRADING PARTNERS WITHOUT ASKING GATT PHILIP MORRIS RAISED THE PRICE OF ITS CHEAPEST CIGARETTES AFTER A SIMILAR MOVE BY RIVAL RJR NABSICO LAST WEEK BUT ANALYSTS SAID THE TOBACCO INDUSTRY'S PRICE WAR MAY NOT BE OVER PILKINGTON SUSPENDED THREE TOP EXECUTIVES OF THE BRITISH GLASS MAKER'S LIBBEYOWENSFORD UNIT IN OHIO WITH PAY PENDING AN INTERNAL INQUIRY THE COMPANY GAVE NO OTHER DETAILS CONTINENTAL AIRLINES NAMED ONE OF ITS NEW INVESTORS DAVID BONDERMAN TO BE THE CARRIER'S CHAIRMAN HE HAS INDICATED THAT HE WANTS TO RETAIN ROBERT FERGUSON AS CHIEF EXECUTIVE BONDS LEHMAN BROTHERS TREASURY INDEX 513362 UP 350 COMMODITIES OIL 2034 A BARREL OFF 10 CENTS DOW JONES FUTURES INDEX 12067 OFF 023 SPOT INDEX 11974 UP 013 DOLLAR 11139 YEN OFF 036 16065 MARKS OFF 00009 9305120011 930512 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH PACT WITH MCDONALD'S CALLS FOR 10000 PAY PHONES IN '93 AMERICAN TELEPHONE & TELEGRAPH CO SAID IT EXPECTS TO HAVE 10000 PAY PHONES IN MCDONALD'S CORP US RESTAURANTS WITHIN A YEAR ABOUT 4000 TELEPHONES ALREADY HAVE BEEN INSTALLED ANOTHER 6000 ARE PLANNED OVER THE NEXT YEAR ALTHOUGH AT&T ANNOUNCED THE CONTRACT TUESDAY THE TWO COMPANIES SAID THE AGREEMENT WAS SIGNED A YEAR AGO MCDONALD'S SAID IT WAITED TO ANNOUNCE THE CONTRACT BECAUSE IT WANTED TO BE SURE OF CUSTOMER SATISFACTION WITH THE SYSTEM THE CONTRACT CALLS FOR AT&T TO PROVIDE LONGDISTANCE SERVICE AND IN CONJUNCTION WITH LOCAL PHONE COMPANIES TO INSTALL AND MANAGE PHONES FOR MCDONALD'S THE OAK BROOK ILL RESTAURANT AND FOOD SERVICE COMPANY 9305120010 930512 BUSINESS BRIEF TURNER CORP PROFIT MORE THAN DOUBLED TO 946000 IN FIRST PERIOD TURNER CORP NEW YORK REPORTED FIRSTQUARTER PROFIT MORE THAN DOUBLED ALTHOUGH THE YEAREARLIER QUARTER WAS BOOSTED BY A ONETIME GAIN FOR AN ACCOUNTING ADJUSTMENT THE BIG CONSTRUCTION COMPANY POSTED NET INCOME OF 946000 OR NINE CENTS A SHARE COMPARED WITH 414000 OR THREE CENTS A SHARE IN THE 1992 QUARTER YEAREARLIER RESULTS INCLUDED A GAIN OF 15 MILLION OR 29 CENTS A SHARE FOR AN ACCOUNTING CHANGE IN AMORTIZING UNRECOGNIZED PENSIONPLAN GAINS ON AN OPERATING BASIS GROSS EARNINGS OR ACTUAL FEE REVENUE TO TURNER FROM CONSTRUCTION CONTRACTS ROSE ROUGHLY 18 TO 158 MILLION FROM 133 MILLION ON CONTINUED COSTCONTROL EFFORTS BY TURNER THE IMPROVEMENT ALSO CAME DESPITE THE FACT THAT THE VALUE OF CONSTRUCTION COMPLETED IN THE QUARTER FELL TO 5809 MILLION FROM 5942 MILLION THE COMPANY SAID SALES REPRESENTING NEW CONTRACTS IN THE QUARTER WERE 705 MILLION COMPARED WITH 662 MILLION A YEAR AGO 9305120009 930512 MARKETING BRIEF ALTERNATE POSTAL DELIVERY INC CONCERN TO SPEED EXPANSION AS THREE MEDIA FIRMS INVEST ALTERNATE POSTAL DELIVERY INC A PRIVATE MAIL DELIVERY CONCERN SAID CAPITAL CITIES/ABC INC SCRIPPS HOWARD BROADCASTING CO AND TRIBUNE CO HAVE INVESTED IN THE COMPANY WHICH WILL ACCELERATE ITS NATIONAL EXPANSION ALTERNATE POSTAL DELIVERY GRAND RAPIDS MICH SAID THE MEDIA COMPANIES INVESTED BY BUYING CONVERTIBLE DEBENTURES BUT WOULD NOT ELABORATE ON THE TERMS OF CONVERTIBILITY IT SAID THE INVESTMENT WILL ENABLE IT TO EXPAND INTO 70 US MARKETS BY THE END OF THIS YEAR AND INTO 100 MARKETS BY THE END OF 1994 THE COMPANY CURRENTLY HAS 58 AFFILIATES ACROSS THE COUNTRY SINCE US POSTAL SERVICE RATES FOR SECONDCLASS AND THIRDCLASS MAIL ROSE TWO YEARS AGO MORE PERIODICALS AND CATALOG PUBLISHERS HAVE TURNED TO PRIVATE MAIL DELIVERY A BIG ATTRACTION OF THE PRIVATE FIRMS IS THEIR ABILITY TO DELIVER ON THE DOORKNOBS OF SELECTED HOMES PACKETS OF CATALOGS PRODUCT SAMPLES AND BROCHURES AS WELL AS THE PUBLICATIONS SCRIPPS HOWARD INC IS AMONG THREE MEDIA COMPANIES THAT MADE INVESTMENTS IN ALTERNATE POSTAL DELIVERY INC A PROVIDER OF PRIVATE DELIVERY OF SECONDCLASS AND THIRDCLASS MAIL AN ARTICLE IN YESTERDAY'S BUSINESS BRIEFS SECTION INCORRECTLY INDICATED THE INVESTMENT WAS BY SCRIPPS HOWARD BROADCASTING CO A SUBSIDIARY SCRIPPS HOWARD INC IS A SUBSIDIARY OF EW SCRIPPS CO 9305120008 930512 BUSINESS BRIEF APPLIED MATERIALS INC COMPANY EXPECTS TO REPORT HIGHERTHANEXPECTED NET APPLIED MATERIALS INC SANTA CLARA CALIF SAID IT EXPECTS TO POST HIGHERTHANEXPECTED FISCAL SECONDQUARTER NET INCOME OF AT LEAST 50 CENTS A SHARE ON STRONG SALES FOR THE QUARTER ENDED MAY 2 APPLIED WHICH MAKES SEMICONDUCTOR MANUFACTURING EQUIPMENT SAID IT EXPECTS TO POST REVENUE OF AT LEAST 250 MILLION ON STRONG DEMAND FOR ITS PRODUCTS IN NORTH AMERICA EUROPE AND ASIA APPLIED ALSO SAID IT EXPECTS TO SHOW A POSITIVE BOOKTOBILL RATIO WHICH MEANS THAT NEW ORDERS OUTPACED PRODUCT SHIPMENTS FOR THE QUARTER THE COMPANY SAID IT WILL POST ITS EARNINGS ON MAY 18 ACCORDING TO ZACKS INVESTMENT RESEARCH INC ANALYSTS ESTIMATED APPLIED WOULD POST NET OF 38 CENTS TO 42 CENTS A SHARE APPLIED MADE ITS ANNOUNCEMENT AFTER THE MARKET CLOSED IN THE YEARAGO SECOND QUARTER APPLIED POSTED NET OF 94 MILLION OR 26 CENTS A SHARE ON REVENUE OF 1801 MILLION 9305120007 930512 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BANK OF DELAWARE 200 MILLION OF NOTES DUE JUNE 10 1994 PRICED INITIALLY AT PAR TO YIELD 33 ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL BE REOFFERED AT VARIOUS PRICES BY UNDERWRITERS LED BY MERRILL LYNCH & CO THE ISSUE IS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP BANK OF DELAWARE IS A UNIT OF PNC BANK CORP CANADIAN NATIONAL RAILWAY CO 150 MILLION OF NOTES DUE MAY 15 2003 PRICED AT PAR TO YIELD 6625 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 073 PERCENTAGE POINT ABOVE THE TREASURY WHENISSUED 10YEAR NOTE RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CANADIAN NATIONAL RAILWAY CO 150 MILLION OF NOTES DUE MAY 15 2023 PRICED AS 7 5/8S AT 9875 TO YIELD 7733 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 09 PERCENTAGE POINT ABOVE THE TREASURY WHENISSUED 30YEAR BOND RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC GAYLORD CONTAINER CORP 525 MILLION TWOPART ISSUE OF SECURITIES PRICED THROUGH DEALERS LED BY BT SECURITIES ACCORDING TO MCM CORPORATEWATCH THE FIRST PART 225 MILLION OF SENIOR NOTES DUE MAY 15 2001 WAS PRICED AT PAR TO YIELD 115 THE ISSUE IS NONCALLABLE FOR FOUR YEARS THE SIZE OF THE OFFERING WAS DECREASED FROM A PLANNED 250 MILLION THE SECOND PART 300 MILLION OF PROCEEDS SENIOR SUBORDINATED DISCOUNT DEBENTURES DUE MAY 15 2005 WAS PRICED AT 69089 TO YIELD 1275 THE DEBENTURES DO NOT PAY INTEREST UNTIL MAY 1996 NONCALLABLE FOR FIVE YEARS THE SIZE OF THE ISSUE WAS RAISED FROM A PLANNED 275 MILLION THE FIRST PART IS RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE SECOND PART IS RATED CAA BY MOODY'S AND SINGLEBMINUS BY S&P PEP BOYS MANNY MOE & JACK 75 MILLION OF NOTES DUE MAY 15 2003 PRICED AS 6 5/8S AT 99172 TO YIELD 674 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 085 PERCENTAGE POINT ABOVE THE TREASURY WHENISSUED 10YEAR NOTE THE SIZE OF THE OFFERING WAS INCREASED FROM AN ORIGINALLY PLANNED 50 MILLION RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP PNC BANK KY 100 MILLION OF NOTES DUE JUNE 10 1994 PRICED INITIALLY AT PAR TO YIELD 33 ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL BE REOFFERED AT VARIOUS PRICES BY UNDERWRITERS LED BY MERRILL LYNCH & CO THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P PNC BANK KY IS A UNIT OF PNC BANK CORP PNC BANK NA 700 MILLION OF NOTES DUE JUNE 10 1994 PRICED INITIALLY AT PAR TO YIELD 33 ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL BE REOFFERED AT VARIOUS PRICES BY UNDERWRITERS LED BY MERRILL LYNCH & CO THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P PNC BANK NA IS A UNIT OF PNC BANK CORP SHOWBOAT INC 275 MILLION OF FIRST MORTGAGE BONDS DUE MAY 1 2008 PRICED AT PAR TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR SEVEN YEARS RATED BA3 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP AMTRAN INC INITIAL OFFERING OF 3150000 SHARES OF COMMON STOCK PRICED AT 16 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC AND MCDONALD AND CO SECURITIES INC ARGENTARIA CORPORACION BANCARIA DE ESPANA INITIAL OFFERING OF 28 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 1607 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY INTERNATIONAL CROSS TIMBERS OIL CO INITIAL OFFERING OF 58 MILLION COMMON SHARES PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO THERMEDICS INC TWO MILLION SHARES OF COMMON STOCK OFFERED AT 15 APIECE THROUGH COMANAGERS NATWEST SECURITIES LTD AND FIRST ALBANY CORP ZURICH REINSURANCE CENTRE HOLDINGS INC INITIAL OFFERING OF 855 MILLION COMMON SHARES PRICED AT 35 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP BURBANK CALIF REDEVELOPMENT AGENCY 69005 MILLION GOLDEN STATE REDEVELOPMENT PROJECT TAX ALLOCATION BONDS 1993 SERIES A TENTATIVELY PRICED BY A DEAN WITTER REYNOLDS INC GROUP TO YIELD FROM 275 IN 1993 TO 625 IN 2024 THE BONDS ARE RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P LAFAYETTE LA 5338 MILLION PUBLIC IMPROVEMENT SALES TAX REFUNDING BONDS SERIES 1993A TENTATIVELY PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP TO YIELD FROM 26 IN 1994 TO 565 IN 2009 THE BONDS ARE FGICINSURED AND RATED TRIPLEA BY BOTH MOODY'S AND S&P LOWER COLORADO RIVER AUTHORITY 30531 MILLION JUNIOR LIEN REFUNDING REVENUE BONDS FIFTH SUPPLEMENTAL SERIES TENTATIVELY PRICED BY A MORGAN STANLEY & CO GROUP TO YIELD FROM 41 IN 1997 TO 582 IN 2016 BONDS DUE 19972004 AND 2006 ARE AMBACINSURED AND RATED TRIPLEA BY BOTH MOODY'S AND S&P BONDS DUE 20072011 ARE FSAINSURED AND RATED TRIPLEA BY BOTH MOODY'S AND S&P BONDS DUE 2005 AND 2016 ARE UNINSURED AND RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P MASSACHUSETTS 76898 MILLION GENERAL OBLIGATION BOND OFFERING CONSISTING OF 175 MILLION CONSOLIDATED LOAN OF 1993 SERIES A BONDS AND 59398 MILLION GENERAL OBLIGATION REFUNDING BONDS 1993 SERIES B TENTATIVELY PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELD FROM 3 IN 1994 TO 575 IN 2012 MOST OF THE BONDS ARE RATED SINGLEA BY BOTH MOODY'S AND S&P BONDS DUE 2001 2006 AND 2007 ALL OF THE REFUNDING BONDS 1993 SERIES B PORTION OF THE DEAL ARE INSURED AND RATED TRIPLEA BY BOTH AGENCIES BONDS DUE 2001 AND 2006 ARE FGICINSURED AND BONDS DUE 2007 ARE MBIAINSURED NEW HAMPSHIRE HIGHER EDUCATIONAL AND HEALTH FACILITIES AUTHORITY 130 MILLION REVENUE BONDS DARTMOUTH COLLEGE ISSUE SERIES 1993 TENTATIVELY PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELD FROM 26 IN 1994 TO 573 IN 2023 THE BONDS ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P WASHINGTON DC 486385000 GENERAL OBLIGATION REFUNDING BONDS SERIES 1993B TENTATIVELY PRICED BY A MERRILL LYNCH & CO GROUP THERE ARE 229580000 AMBACINSURED BONDS YIELDING 34 IN 1995 TO 565 IN 2010 THERE ARE 131060000 FSAINSURED BONDS YIELDING 34 IN 1995 TO 57 IN 2010 AND THERE ARE 131060000 MBIAINSURED BONDS YIELDING 34 IN 1995 TO 57 IN 2012 THE ISSUE IS BOOKENTRY ONLY THE INSURED BONDS ARE ALL RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUER'S UNDERLYING RATINGS ARE BAA BY MOODY'S AND SINGLEAMINUS BY S&P WASHINGTON STATE 201 MILLION GENERAL OBLIGATION BONDS AND MOTOR VEHICLE FUEL TAX BONDS TENTATIVELY PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP TO YIELD FROM 225 IN 1993 TO 49 IN 2001 THE BONDS ARE RATED DOUBLEA BY BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES GOLD 1538 IS BACKED BY FREDDIE MAC GOLD 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 199396 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 77 BELL CANADA CANADA 200 MILLION CANADIAN DOLLARS OF 85 EUROBONDS DUE JUNE 9 2003 AT ISSUE PRICE 101875 VIA WOOD GUNDY INC REOFFERED AT 10025 TO YIELD 846 ANNUAL SPREAD 76 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE BELL CANADA IS A UNIT OF BCE INC FEES 2 POINTS BELLSOUTH TELECOMMUNICATIONS INC US 500 MILLION OF 5 1/4 EUROBONDS DUE JUNE 8 1998 AT ISSUE PRICE 101205 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 9958 TO YIELD 535 ANNUAL SPREAD 25 BASIS POINTS ABOVE US TREASURY'S 5 1/8 NOTE DUE APRIL 1998 BELLSOUTH TELECOM IS A UNIT OF BELLSOUTH CORP FEES 1875 POINTS EKSPORTFINANS AS NORWAY 150 BILLION LIRE OF 10 5/8 EUROBONDS DUE JUNE 8 1998 AT ISSUE PRICE 101875 VIA ISTITUTO BANCARIO SAN PAOLO DI TORINO YIELD 10 5/8 AT COMANAGERS' BREAKEVEN PRICE FEES 1875 POINTS INTER NV FRANCE PARENT 1 BILLION FRENCH FRANCS OF 7 3/4 EUROBONDS DUE JUNE 8 2000 AT ISSUE FIXED REOFFER PRICE 9958 VIA CREDIT LYONNAIS YIELD AT REOFFER PRICE 783 ANNUAL SPREAD 85 BASIS POINTS ABOVE 8 1/2 OBLIGATION ASSIMABLES DU TRESOR DUE 1998 GUARANTOR PARENT PECHINEY SA FEES 035 POINT MCDONALD'S CORP US 100 MILLION OF 8 1/2 EUROBONDS DUE JUNE 9 2003 AT ISSUE PRICE 100492 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 98867 TO YIELD 867 ANNUAL SPREAD 40 BASIS POINTS ABOVE 8 GILT DUE 2003 FEES 2 POINTS NICHII CO JAPAN 400 MILLION MARKS OF 2 3/4 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE MAY 27 1997 AT ISSUE PRICE PAR VIA DEUTSCHE BANK AG EACH 5000MARK BOND HAS FIVE WARRANTS ATTACHED EXERCISABLE FROM JUNE 14 1993 TO MAY 20 1997 TO BUY COMPANY SHARES AT AN EXPECTED 25 PREMIUM ABOVE CLOSING SHARE PRICE ON MAY 18 WHEN FINAL TERMS FIXED FEES 265 POINTS NICHII CO JAPAN 300 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MAY 27 1997 WITH EQUITYWARRANTS CARRYING A 1 1/8 COUPON AT PAR VIA UNION BANK OF SWITZERLAND EACH 50000FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM JUNE 14 1993 TO MAY 20 1997 FINAL TERMS ARE FIXED MAY 18 FEES 1 5/8 POINTS REPUBLIC OF VENEZUELA SOVEREIGN 150 MILLION OF 9 SEMIANNUAL EUROBONDS DUE MAY 27 1996 AT REOFFER PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD SPREAD AT REOFFER PRICE 470 BASIS POINTS OVER THREEYEAR WHENISSUED US TREASURY NOTE YIELD FEES 1 POINT 9305120006 930512 BUSINESS BRIEF MICHIGAN NATIONAL CORP BANK EXCHAIRMAN AGREE TO A 4 MILLION SETTLEMENT MICHIGAN NATIONAL CORP FARMINGTON HILLS MICH SAID IT AGREED TO A 4 MILLION SETTLEMENT WITH FORMER CHAIRMAN STANFORD C STODDARD MR STODDARD WHO LEFT MICHIGAN NATIONAL IN 1984 AMID ALLEGATIONS HE HAD MISUSED BANK FUNDS FOR PERSONAL USE SUED TO MAKE THE BANK COVER SOME 2 MILLION IN LEGAL BILLS ACCORDING TO HIS ATTORNEY STEPHEN LANDAU HE ALSO CHARGED THAT THE BANK HAD DEFAMED HIS CHARACTER WE VIEW THE SETTLEMENT AS COMPLETE VINDICATION OF HIS POSITION SAID MR LANDAU MR STODDARD WAS CONVICTED ON FEDERAL CHARGES STEMMING FROM HIS TENURE AT MICHIGAN NATIONAL BUT HE WAS LATER RETRIED AND CLEARED ON ALL COUNTS ROBERT J MYLOD MICHIGAN NATIONAL'S CHAIRMAN AND CHIEF EXECUTIVE SAID THE LEGAL BATTLE WITH MR STODDARD HAD BEEN GOING ON FOR 8 1/2 YEARS AND I THINK ALL PARTIES DECIDED IT WAS TIME TO PUT THIS BEHIND US 9305120005 930512 TECHNOLOGY NEW AT&T PHONE CARRIES STILL VIDEO IMAGES SOUND NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO UNVEILED A TELEPHONE CAPABLE OF SENDING A FULLCOLOR HIGHQUALITY STILL IMAGE TO ANOTHER SIMILAR PHONE WHILE SIMULTANEOUSLY ALLOWING A CONVERSATION CALLED THE PICASSO THE INSTRUMENT LOOKS LIKE AN OFFICE TELEPHONE BUT CONTAINS A DATA MODEM AND TRANSCEIVER TO SET UP A PICTURE CALL USERS PLUG A VIDEO CAMERA AND A TV OR OTHER MONITOR INTO THE PHONE WITH THE PUSH OF A COUPLE OF BUTTONS AN IMAGE MAY BE SENT WHILE THE CALLERS CHAT THE PRICE 3295 PER UNIT A COMPANY SPOKESMAN SAID THE PHONE WILL BE MARKETED TO INDUSTRIES THAT ROUTINELY SHARE PHOTOS AND SKETCHES SUCH AS ADVERTISING DESIGN AND PHOTOGRAPHY COMPANIES OTHER MANUFACTURERS HAVE MARKETED SIMILAR DEVICES FOR USE BY INSURANCECLAIMS ADJUSTERS AND IN MEDICAL AND EDUCATIONAL APPLICATIONS AT&T SAID IT WILL BEGIN SHIPPING THE PHONE IN JUNE 9305120004 930512 ABREAST OF THE MARKET INDUSTRIALS GAIN 2547 TO 346875 AS SMOOTH NOTE SALE EASES FEARS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS BID STOCKS SHARPLY HIGHER AFTER THE TREASURY SUCCESSFULLY AUCTIONED 16 BILLION OF NEW THREEYEAR NOTES THE SMOOTH AUCTION EASED INVESTORS' FEARS ABOUT A JUMP IN INTEREST RATES FOLLOWING THE TREASURY'S HEAVY BORROWING SCHEDULE THIS WEEK MEANWHILE THE STANDARD & POOR'S 500STOCK INDEX CLIMBED 156 TO 44436 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED UP 085 TO 24588 MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER SAID MANY INVESTORS ARE BETTING THAT TODAY'S LABOR DEPARTMENT REPORT ON PRODUCER PRICES WILL PAVE THE WAY FOR LOWER INTEREST RATES FALLING INTEREST RATES WOULD MAKE STOCKS MORE ATTRACTIVE BUT MR METZ SAID HE THINKS THE MARKET IS GETTING AHEAD OF ITSELF EXPECTATIONS ARE REALLY THE CRITICAL FACTOR IN THE MARKET HERE AND I THINK THEY'RE HIGH AS FAR AS INTEREST RATES EARNINGS AND ECONOMIC MOMENTUM ARE CONCERNED SAID MR METZ AS THE MARKET HAS STRENGTHENED IN RECENT DAYS MANY TRADERS WHO HAVE BEEN SHORT STOCKS OR HAVE SOLD BORROWED SHARES IN THE HOPE OF BUYING THEM BACK WHEN PRICES DROP HAVE BEEN FORCED TO COVER THEIR POSITIONS TO A LARGE EXTENT ANALYSTS SAY THIS FLURRY OF SHORTCOVERING HAS PUSHED STOCK PRICES HIGHER ANOTHER FACTOR BEHIND THE MARKET'S GAINS MR METZ SAYS IS THE CASH LEVELS AT MUTUAL FUNDS ONLY A FEW WEEKS AGO MANY MONEY MANAGERS WERE LOOKING FOR STOCKS TO FALL STEEPLY SO THAT THEY COULD ENTER THE MARKET BUT NOW THAT PRICES ARE RISING THESE INVESTMENT MANAGERS ARE JUMPING IN FEARING THAT IF THEY DON'T SNAP UP STOCKS THEIR INVESTORS WILL MISS OUT ON A HUGE RALLY TRADING ON THE BIG BOARD WAS MODERATELY HEAVY YESTERDAY AS 218455610 SHARES CHANGED HANDS DOWN SLIGHTLY FROM 224715810 SHARES MONDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 1053 TO 856 PHILIP MORRIS WAS THE MOST ACTIVELY TRADED STOCK ON THE BIG BOARD SLUMPING 1 1/4 TO 51 1/2 THE FOOD AND TOBACCO GIANT SAID IT IS RAISING PRICES ON ITS DEEP DISCOUNT CIGARETTES BY ABOUT A DIME A PACK IN AN EFFORT TO CLOSE THE GAP BETWEEN ITS PRICIEST BRANDS AND CHEAPER SMOKES PHILIP MORRIS WAS HURT BY A SANFORD C BERNSTEIN REPORT PREDICTING THE CIGARETTE PRICE WAR ISN'T OVER WHAT'S MORE ANALYSTS SAID INVESTORS WERE SELLING TOBACCO STOCKS YESTERDAY ON FEARS THAT THE TAX ON CIGARETTES WILL BE STIFFER NOW THAT THE CLINTON ADMINISTRATION HAS DECIDED TO EXEMPT BEER FROM TAXATION RJR NABISCO ADDED 1/8 TO 6 BUT AMERICAN BRANDS SLIPPED 1/8 TO 32 1/4 AND LOEWS WHICH MARKETS NEWPORT CIGARETTES LOST 1 3/8 TO 99 3/8 MEANWHILE ANHEUSERBUSCH WHICH MAKES BUDWEISER BEER SHOT UP 1 7/8 TO 51 3/4 SEARS ROEBUCK ADDED 3/8 TO 54 1/2 THE COMPANY SAID IT REACHED A DEFINITIVE AGREEMENT FOR PNC BANK TO ACQUIRE ITS MORTGAGE BANKING GROUP FOR 328 MILLION IN CASH PLUS NORMAL CLOSING ADJUSTMENTS MINNESOTA MINING & MANUFACTURING JUMPED 1 5/8 TO 114 1/8 THE COMPANY SAID IT EXPECTS A GOOD INCREASE IN EARNINGS FOR 1993 AS LONG AS THE ECONOMIC ENVIRONMENT REMAINS MUCH THE SAME FOR THE REST OF THE YEAR MCDONNELL DOUGLAS TUMBLED 1 TO 61 7/8 A TOP PENTAGON OFFICIAL WARNED THE AEROSPACE CONCERN THAT UNLESS IT IMPROVES THE C17 CARGO AIRCRAFT THE PROGRAM WILL BE CANCELED MCDONNELL DOUGLAS RESPONDED SAYING ITS C17 PROGRAM IS VIABLE AND WILL RESULT IN THE PRODUCTION OF THE AIRCRAFT AUGAT CLIMBED 1 1/4 TO 16 1/8 THE MANSFIELD MASS MAKER OF CONNECTORS AND ELECTRONIC PARTS SAID IT EXPECTS PERSHARE EARNINGS FOR FISCAL 1993 TO MORE THAN DOUBLE LAST YEAR'S NET INCOME OF 36 CENTS A SHARE THE COMPANY INDICATED THAT EARNINGS WOULD FALL IN THE RANGE OF ABOUT 75 CENTS TO 80 CENTS A SHARE AMERICAN GENERAL SOARED 2 TO 30 1/8 SALOMON RAISED ITS RATING ON THE STOCK TO BUY FROM HOLD PENN CENTRAL SLUMPED 1 3/8 TO 27 1/8 THE COMPANY SAID A MAJOR SHAREHOLDER AMERICAN FINANCIAL ENTERPRISES PLANS TO SELL FOUR MILLION PENN CENTRAL COMMON SHARES IN A SECONDARY OFFERING AFTER THE MARKET CLOSED AN INITIAL PUBLIC OFFERING OF 58 MILLION COMMON SHARES OF CROSS TIMBERS OIL WAS PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS CROSS TIMBERS IS A HOUSTON OIL AND GAS CONCERN THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 056 TO 42725 THERE WERE 319 ADVANCERS AND 264 DECLINERS 9305120003 930512 FOREIGN EXCHANGE DOLLAR PAUSES AFTER DRIFTING NARROWLY BUT IS EXPECTED TO RESUME UPWARD PATH BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED MIXED TUESDAY DRIFTING IN NARROW RANGES IN THE ABSENCE OF FRESH NEWS BUT PLAYERS SAID IT MAY YET CONTINUE ON THE UPWARD PATH IT TRAVELED MONDAY ON PERCEPTIONS THE US ECONOMY IS HEALTHIER THAN THOSE OF ITS MAJOR COUNTERPARTS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16065 MARKS DOWN FROM 16074 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11139 YEN DOWN FROM 11175 YEN STERLING WAS TRADING AT 15410 UP FROM 15330 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11143 YEN AND AT 16076 MARKS THE DOLLAR MOVED NARROWLY DURING THE DAY MARKET PARTICIPANTS WERE CONSOLIDATING THEIR POSITIONS AFTER THE US CURRENCY'S SURGE MONDAY DEALERS SAID TRADERS SAID THAT DESPITE TUESDAY'S PAUSE THE DOLLAR IS LIKELY TO RESUME ITS ADVANCE DURING THE NEXT FEW DAYS PLAYERS ARE FOCUSING ON THE FACT THE DOLLAR FOUND SUSTAINED TECHNICAL SUPPORT AGAINST THE MARK LAST WEEK DESPITE A STRING OF WEAKERTHANEXPECTED US ECONOMIC INDICATORS SAID BRIAN DOLAN A TRADER AT DAIICHI KANGYO BANK LTD EVEN AFTER ALL THAT BAD DATA THE DOLLAR DIDN'T GO ANY LOWER MR DOLAN SAID THIS HAS REMINDED PARTICIPANTS THAT THE US ECONOMY IS DOING BETTER THAN THOSE OF ITS COMPETITORS AS A RESULT US INTEREST RATES ARE SEEN HOLDING STEADY IN THE NEAR TERM WHILE RATES IN EUROPE ARE EXPECTED TO HEAD LOWER MR DOLAN SAID ALTHOUGH EUROPEAN INTEREST RATES ARE STILL ABOVE THOSE IN THE US THE NARROWING RATE GAP HELPS MAKE THE DOLLAR ATTRACTIVE BY COMPARISON TRADERS SAID THE MARKET'S NEXT OBJECTIVE FOR THE DOLLAR IS 16200 MARKS SAID KEVIN LAWRIE FOREIGN EXCHANGE MANAGER AT MELLON BANK IN PITTSBURGH BUT HE ADDED THAT THE DOLLAR PROBABLY WILL HAVE DIFFICULTY ATTAINING THAT LEVEL UNTIL WE START TO GET SOME GOOD US ECONOMIC DATA THE MARKET WOULD LIKE TO SEE GOOD DOLLAR NEWS PEOPLE ARE LOOKING TO GRASP ONTO SOMETHING MR LAWRIE ADDED TUESDAY THE DOLLAR MIGHT HAVE REGISTERED MORE PROGRESS AGAINST THE MARK THAN IT DID DEALERS SAID BUT FOR WIDESPREAD THOUGH UNCONFIRMED RUMORS THAT THE BUNDESBANK WAS SELLING DOLLARS FOR MARKS JUST ABOVE 16100 MARKS TO ADJUST ITS CURRENCY RESERVES AGAINST THE YEN THE DOLLAR MOVED IN EVEN TIGHTER RANGES THAN IT DID AGAINST THE MARK TRADERS NOTED THE YEN HAS BEEN ON THE SIDELINES IN THE LAST TWO DAYS MR LAWRIE SAID JAPANESE EXPORTERS CONTINUE TO BE STRONG DOLLAR SELLERS BETWEEN 112 AND 11250 YEN WHILE SUSTAINED DOLLAR BUYING INTEREST APPEARS AROUND 111 YEN MR DOLAN SAID THE RAPID YEN APPRECIATION THAT BEGAN IN FEBRUARY MAY HAVE PLAYED ITSELF OUT FOR NOW MR DOLAN SAID PERSISTENT INTERVENTION FROM THE BANK OF JAPAN AND ONE DAY OF INTERVENTION BY THE US FEDERAL RESERVE BANK IN LATE APRIL HAS TAKEN THE WIND OUT OF THOSE SAILS HE ADDED IN CROSS OR NONDOLLAR TRADING TUESDAY THE PESETA CAME UNDER RENEWED PRESSURE VS THE MARK ON CONCERNS ABOUT POSSIBLE DANISH REJECTION OF THE MAASTRICHT TREATY ON EUROPEAN COMMUNITY UNION SAID JACK O'MELIA CHIEF DEALER AT BANCO ESPANOL DE CREDITO DENMARK WILL VOTE ON THE TREATY FOR THE SECOND TIME MAY 18 THE BANK OF SPAIN INTERVENED REPEATEDLY BETWEEN 7040 AND 7045 PESETAS TO THE MARK TO SUPPORT THE SPANISH CURRENCY DURING TUESDAY TRADERS SAID THE INTERVENTION SUCCEEDED IN KEEPING THE PESETA FROM SLIPPING MUCH BEYOND THE INTERVENTION LEVELS MR O'MELIA SAID LATE TUESDAY IN NEW YORK THE PESETA WAS TRADING AT 7346 PESETAS PER MARK LITTLE CHANGED FROM LATE MONDAY A DANISH NO' VOTE WOULD DERAIL ANY CHANCE FOR EUROPEAN MONETARY UNION IN THE RELATIVELY NEAR FUTURE MR O'MELIA SAID IT ALSO COULD CREATE A CRISIS OF CONFIDENCE IN THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM HE ADDED 9305120002 930512 TECHNOLOGY & HEALTH EPA FINDS UNSAFE LEAD LEVELS IN WATER STUDY BY AGENCY REVEALS 819 SYSTEMS IN NATION EXCEED THE LEGAL LIMIT BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MORE THAN 10 OF THE US POPULATION DRAWS ITS DRINKING WATER FROM SYSTEMS CONTAINING UNSAFE LEVELS OF LEAD ACCORDING TO A STUDY BY THE ENVIRONMENTAL PROTECTION AGENCY THE SURVEY FOUND THAT 819 WATER SYSTEMS SERVING 30 MILLION PEOPLE EXCEED THE LEGALLY PERMISSIBLE LEAD LEVEL OF 15 PARTS PER BILLION THE EPA COLLECTED DATA ON 6400 WATER SYSTEMS AROUND THE COUNTRY BETWEEN JULY AND DECEMBER 1992 ALTHOUGH THE FINDINGS FAR EXCEED THE EPA'S PREVIOUS ESTIMATES OF LEAD CONTAMINATION IN THE NATION'S WATER SUPPLY THEY DON'T MEAN THAT 30 MILLION PEOPLE ARE CONSUMING UNSAFE WATER RATHER THEY MEAN THAT 30 MILLION PEOPLE DRAW THEIR WATER FROM A SYSTEM WHICH WHEN TESTED IN CERTAIN HIGHRISK RESIDENCES SUCH AS THOSE SERVED BY LEAD SERVICE LINES OR CONTAINING LEAD INTERIOR PIPING IS FOUND TO EXCEED THE LEGAL LIMIT MORE THAN 10 OF THE TIME NEVERTHELESS THE FINDINGS ARE LIKELY TO STIR FURTHER CONCERN ABOUT THE PROBLEM OF LEAD IN THE WATER SUPPLY NOT LEAST BECAUSE THE RESULTS DON'T INCLUDE AN ADDITIONAL 1100 WATER SYSTEMS THAT FAILED TO REPORT THEIR LEAD LEVELS TO THE EPA LEAD IS A TOXIC METAL THAT CAN CAUSE A VARIETY OF HEALTH PROBLEMS IN BABIES AND YOUNG CHILDREN INCLUDING THE IMPAIRMENT OF MENTAL ABILITY ACCORDING TO THE EPA LEAD IN DRINKING WATER CONTRIBUTES 10 TO 20 OF TOTAL LEAD EXPOSURE IN YOUNG CHILDREN WITH THE REST COMING FROM LEADBASED PAINT CONTAMINATED SOIL AND DUST THE EPA FOUND LEAD LEVELS ESPECIALLY HIGH IN SMALLER CITIES WHICH TEND TO HAVE LESSSOPHISTICATED TREATMENT FOR THEIR DRINKING WATER AMONG THE CITIES WITH THE HIGHEST LEVELS WERE GROSSE POINTE PARK MICH FOUND TO HAVE 324 PARTS PER BILLION GOOSE CREEK SC 257 PARTS PER BILLION AND HONESDALE PA 210 PARTS PER BILLION AMONG LARGER CITIES THE HIGHEST LEVELS OF LEAD WERE FOUND IN CHARLESTON SC WHICH HAD 165 PARTS PER BILLION UTICA NY 160 PARTS PER BILLION AND NEWTON MASS 123 PARTS PER BILLION MASSACHUSETTS FARED POORLY IN THE SURVEY WITH FIVE CITIES NEWTON WALTHAM BROOKLINE MEDFORD AND CHICOPEE AMONG THE TOP 10 IN LEAD LEVELS FOR WATER SYSTEMS SERVING MORE THAN 50000 PEOPLE IN GENERAL LEAD LEVELS WERE HIGHEST IN AREAS WITH OLDER HOUSING AND PUBLICWORKS SYSTEMS IN WHICH LEAD PIPES ARE MORE COMMON THE SURVEY'S HIGHEST LEAD LEVEL 484 PARTS PER BILLION WAS FOUND AT CAMP LEJEUNE A US MARINE CORPS INSTALLATION IN NORTH CAROLINA A SEPARATE WATER SOURCE SERVING CAMP LEJEUNE HAD LEAD LEVELS AT 189 PARTS PER BILLION JAMES ELDER DIRECTOR OF GROUNDWATER AND DRINKING WATER FOR THE EPA SAID THE HIGH LEVELS AT CAMP LEJEUNE WERE PARTLY ATTRIBUTABLE TO THE PRESENCE OF LEADLINED COOLERS IN DRINKING FOUNTAINS ON THE BASE NO IMMEDIATE PENALTIES WILL BE LEVELED AT THE WATER SYSTEMS FOUND BY THE EPA TO EXCEED ALLOWABLE LEAD LEVELS RATHER THE EPA WILL REQUIRE THE AFFECTED UTILITIES TO IMPROVE PUBLIC EDUCATION ON HOW TO MINIMIZE THE RISK OF LEAD CONTAMINATION FOR EXAMPLE BY USING COLD WATER FOR COOKING AND TO LIMIT CORROSION IN THE CASE OF WATER SYSTEMS THAT FAILED TO REPORT LEAD LEVELS THE EPA IS PROCEEDING WITH ENFORCEMENT PROCEEDINGS THAT COULD LEAD TO COURT ACTION MR ELDER SAID THE 10 LARGE SERVING OVER 50000 PEOPLE PUBLIC WATER SYSTEMS WITH THE HIGHEST REPORTED LEAD LEVELS ARE CHARLESTON SC 165 PARTS PER BILLION UTICA NY 160 PPB NEWTON MASS 123 PPB COLUMBIA SC 114 PPB MEDFORD MASS 113 PPB CHICOPEE MASS 110 PPB YONKERS NY 110 PPB WALTHAM MASS 76 PPB BROOKLINE MASS 72 PPB TAYLOR MICH 69 PPB THE 10 MEDIUMSIZED SERVING BETWEEN 3301 AND 50000 PEOPLE PUBLIC WATER SYSTEMS WITH THE HIGHEST REPORTED LEAD LEVELS ARE US MARINE CORPS CAMP LEJEUNEHADNOT POINT NC 484 PPB GROSSE POINTE PARK MICH 324 PPB GOOSE CREEK SC 257 PPB HONESDALE PA 210 PPB MANGUM OKLA 191 PPB US MARINE CORPS CAMP LEJEUNENEW RIVER NC 189 PPB CLEWISTON FLA 166 PPB STOCKTON STATE COLLEGE IN POMONA NJ 160 PPB MARCY NY 160 PPB NEW HARTFORD NY 160 PPB 9305120001 930512 FINANCING BUSINESS CANADIAN PACIFIC LTD CANADIAN PACIFIC LTD MONTREAL SAID IT PLANS TO RAISE AS MUCH AS 500 MILLION IN A DEBT OFFERING IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY SAID IT WILL USE THE PROCEEDS TO REPAY DEBT FOR CAPITAL EXPENDITURES AND FOR OTHER CORPORATE NEEDS CANADIAN PACIFIC HAS INTERESTS IN NATURAL RESOURCES TRANSPORTATION REAL ESTATE HOTELS AND TELECOMMUNICATIONS 9305120161 930419 LEISURE & ARTS BOOKSHELF THE NEW IMPULSE TOWARD SELFGOVERNMENT BY MICHAEL S JOYCE DESPITE PRESIDENT BILL CLINTON'S ASSUMPTION THAT HIS 43 OF THE POPULAR VOTE IN NOVEMBER AMOUNTED TO A MANDATE FOR BIGGER GOVERNMENT AND MORE SPENDING THE AMERICAN PEOPLE ACTUALLY SHOW LITTLE AFFECTION FOR A GOVERNMENT WHOSE VAST ATTEMPTS TO BETTER LIFE ARE EQUALED BY THE SIZE OF ITS FAILURES INSTEAD THERE SEEMS NOW TO BE A REVIVAL OF THE NOTION OF CIVIL SOCIETY TRUE SELFGOVERNMENT GOVERNMENT NOT BY POLITICIANS AND BUREAUCRATS BUT BY THE PEOPLE THEMSELVES PRIVATELY BANDED TOGETHER FOR COMMON PURPOSES THE SPIRIT OF COMMUNITY RIGHTS RESPONSIBILITIES AND THE COMMUNITARIAN AGENDA CROWN 323 PAGES 22 BY SOCIOLOGY PROFESSOR AMITAI ETZIONI REFLECTS THIS NEW IMPULSE TOWARD SELFGOVERNMENT ALONG WITH THE TEXT OF THE COMMUNITARIAN MANIFESTO WHICH MR ETZIONI AND HIS COSIGNATORIES HOPE WILL SPARK A MAJOR NEW COMMUNITARIAN MOVEMENT THE VOLUME OFFERS A SURVEY OF THE AREAS OF AMERICAN LIFE THAT HAVE BEEN ADVERSELY AFFECTED BY NARCISSISM AND INDIVIDUALISM AND THAT WOULD BENEFIT FROM A RENEWED SPIRIT OF MUTUALITY WE SHOULD NOT HESITATE TO SPEAK UP AND EXPRESS OUR MORAL CONCERNS TO OTHERS WHEN IT COMES TO ISSUES WE CARE ABOUT DEEPLY AND SHARE WITH ONE ANOTHER SAYS MR ETZIONI A WRITER WITH UTOPIAN LONGINGS AND A PLATITUDINOUS STYLE HIS BOOK FALLS SHORT OF SERVING A GOOD CAUSE IN THIS BOOK HALF OF WHICH IS DEVOTED TO THE OBJECTIVE OF SHORING UP MORALITY THERE IS NOT A SINGLE MENTION OF GOD DIVINE PURPOSE NATURE NATURAL LAW OR NATURAL RIGHT WHEN RELIGION IS MENTIONED AT ALL IT IS TO WARN FELLOW COMMUNITARIANS OF THE THREAT POSED BY THE PURITANISM THAT AFFLICTS THE RELIGIOUSLY COMMITTED BUT THEN MR ETZIONI'S COMMUNITIES ARE NOT BASED ON THE MORAL AND SPIRITUAL VALUES THAT ANIMATE REAL COMMUNITIES TO WHICH REAL PEOPLE PLEDGE THEIR FEALTY BUT ARE RATHER SECULARIZED HOMOGENIZED STERILE SUBSTITUTES THEY THUS PROMISE TO SATISFY SOME INCHOATE COMMUNITARIAN YEARNINGS WITHOUT DISTRACTING MEMBERS OVERLY MUCH FROM THEIR RESOLUTELY SECULAR PURSUITS THEY ARE ALSO IDEAL PROTOTYPES FOR THE GOVERNMENTISSUE COMMUNITIES THAT WILL LIKELY CHARACTERIZE THE SOCIAL POLICY OF HILLARY RODHAM CLINTON AND PERHAPS OF HER HUSBAND IN THE BOOK'S MOST PERSUASIVE SECTION MR ETZIONI DISCUSSES THE IMPORTANCE OF FAMILIES TWOPARENT FAMILIES DEDICATED TO RAISING CHILDREN BY SPENDING TIME WITH THEM HE ADVANCES SUGGESTIONS FOR CLOSER PARENTAL WATCH OVER DAYCARE CENTERS FOR FLEXIBLE WORK SCHEDULES THAT WOULD ENABLE PARENTS WHETHER FATHER OR MOTHER DOES NOT SEEM TO MATTER MUCH TO SPEND THEIR TIME WORKING AT HOME SO THEY CAN KEEP AN EYE ON THE CHILDREN HOWEVER EVEN IN THE AREA OF THE FAMILY MR ETZIONI RESOLUTELY AVOIDS ANY DISCUSSION OF THE CHIEF CAUSE OF THE DECAY OF THE FAMILY IN AMERICAN LIFE THE CHANGE IN SEXUAL MORES SINCE THE 1950S HE DOES NOT DWELL ON THE IMPORTANCE OF TRADITIONAL MARITAL NORMS AND THE POSTPONEMENT OF SEXUAL ACTIVITY UNTIL PEOPLE ARE PSYCHOLOGICALLY MATURE AND READY TO MAKE VITAL DECISIONS ABOUT LOVE MARRIAGE AND PARENTHOOD FOR THEMSELVES I SUPPOSE IT IS A HOPEFUL SIGN THAT MR ETZIONI REPORTS THAT HE HAS BEEN ATTACKED BY SOME LIBERALS FOR HIS USE HOWEVER ATTENUATED OF THE WORD MORALITY IT REMINDS THEM EVIDENTLY OF THE DREADED MORAL MAJORITY PERHAPS IF THE WORD MORALITY CAN ONCE AGAIN BE USED IN PUBLIC DISCOURSE MATTERS ARE ON THE MEND BUT MORE IS NEEDED THAN THE MERE USE OF WORDS ACTIONS DIFFICULT ACTIONS INVOLVING FIDELITY MONOGAMY LIVING OUR LIVES AS IF THEY WERE NOT SIMPLY OURS TO DISPOSE OF AS WE WISH AND TREATING OUR CHILDREN AS THE FLESH OF OUR FLESH AND THE BLOOD OF OUR BLOOD ARE REQUIRED THE JUDEOCHRISTIAN TRADITION IS A SURE GUIDE IN THESE MATTERS AS IS THE ETHICAL CODE OF CONDUCT THAT HAS DEVELOPED FROM THIS TRADITION OVER THOUSANDS OF YEARS SO IF WE CAN AGREE WITH MR ETZIONI THAT OUR NOTION OF COMMUNITY WHICH I WOULD PREFER TO CALL CIVIL SOCIETY SHOULD BE REINVIGORATED WE MUST BEGIN WITH THE STRENGTHENING OF LOCAL INSTITUTIONS FAMILIES SCHOOLS CHURCHES NEIGHBORHOODS THAT PROVIDE TRAINING IN AND ROOM FOR THE EXERCISE OF GENUINE CITIZENSHIP THAT PASS ON EVERYDAY MORALITY AND THE ACCUMULATED WISDOM OF PARENTS TO CHILDREN AND THAT CULTIVATE AND REINFORCE PERSONAL CHARACTER THIS WILL REQUIRE EFFORTS TO REFORM MANY LOCAL INSTITUTIONS FOR TODAY'S SCHOOLS CHURCHES AND FRATERNAL ORGANIZATIONS HAVE THEMSELVES SUCCUMBED TO THE VIEW THAT AMERICANS ARE ALL CLIENTS OR POTENTIAL CLIENTS OF THERAPEUTIC SOCIAL SERVICES IN SHORT WE MUST CHALLENGE ON ALL FRONTS THE HEGEMONY OF THE PEOPLE IN THE HELPING AND CARING PROFESSIONS THE EDUCATION BUREAUCRATS CHILDREN'S ADVOCATES AND WELFARE WORKERS WHO HAVE PENETRATED SO MUCH OF OUR DAILY LIVES AND WHO PROFIT SO HANDSOMELY FROM THE MISERY THEY SO OFTEN CAUSE AND MALTREAT MR JOYCE IS PRESIDENT OF THE BRADLEY FOUNDATION IN MILWAUKEE A PRIVATE INDEPENDENT GRANTMAKING FOUNDATION SEE RELATED LETTER LETTERS TO THE EDITOR LOOKING AT RELIGION IN THE RIGHT SPIRIT WSJ MAY 12 1993 9304190043 YY93 MM05 9305120133 930414 REVIEW & OUTLOOK EDITORIAL ANGOLAN ENDGAMES ANGOLA REBEL LEADER JONAS SAVIMBI EXACTED A HIGH PRICE FROM THE SOVIETCUBAN EXPEDITIONARY FORCE FOR THEIR MEDDLING IN AFRICA LIKE THE NICARAGUAN CONTRAS AND THE AFGHAN MUJAHADEEN HIS UNITA REBELS BLED THE KREMLIN AND HELPED EXPOSE THE ROT AT THE HEART OF THE SOVIET SYSTEM IT WAS SAD THAT THE SUPERPOWER STRUGGLE HAD TO PLAY ITSELF OUT IN THE UNSTABLE POLITICS OF COUNTRIES LIKE ANGOLA BUT SUCH WERE THE KREMLIN'S HAPLESS FANTASIES AT THE SAME TIME IT WAS NEVER LIKELY THAT GLOBAL PHILOSOPHICAL ISSUES WERE UPPERMOST IN THE MINDS OF ANGOLA'S COMBATANTS THEIR LONG STRUGGLE HAS BEEN FOR POWER AND PRIVILEGE AND ANGOLA'S OIL MR SAVIMBI SPOKE THE VALUES OF HIS AMERICAN SUPPORTERS WHILE THE MPLA CALLED ITSELF THE LENINIST VANGUARD FOR THE PEOPLE OF ANGOLA THOUGH THE BATTLE WAS PALPABLY ONE OF RACE ETHNICITY AND THE PERQUISITES OF CONTROL ANGOLA IS A VAST TERRITORY AND RANKS NEAR THE BOTTOM OF THE SCALE ETHNOLOGISTS USE TO MEASURE ETHNIC HOMOGENEITY MR SAVIMBI'S FOLLOWERS THE OVIMBUNDU INHABIT THE REMOTE AND FORESTED PROVINCES OF SOUTH AND CENTRAL ANGOLA THE SOVIETSPONSORED MPLA WAS THE PARTY OF LUANDA'S PORTUGUESEEDUCATED INTELLECTUALS THOUGH LARGELY WHITE OR MESTIZO THEY HAD THEIR POPULIST ALLIES THE KIMBUNDU PEOPLE WHOSE ETHNIC HINTERLAND LIES TO THE NORTH AND EAST OF THE CAPITAL THE TRIUMPH OF AMERICAN VALUES ABROAD WASN'T LIKELY TO TURN THESE CONTESTANTS INTO REPUBLICANS AND DEMOCRATS MR SAVIMBI LOST LAST YEAR'S ELECTION FAIRLY OR OTHERWISE AND TOOK TO THE BUSH AS HE DID 18 YEARS EARLIER HIS TROOPS ARE HOLDING THEIR OWN IN HUAMBO HIS CAPITAL AND HAVE HAD SOME LUCK IN THE DIAMOND AND OILPRODUCING REGIONS EDUARDO DOS SANTOS AND THE MPLA SOLIDIFIED THEIR HOLD IN LUANDA BY MASSACRING UNITA SUPPORTERS ACCORDING TO THE NEW YORK TIMES THIS INCLUDED DANGLING THEM BY THEIR FEET FROM HIGHRISE WINDOWS AND LETTING GO AMERICANS HAVE A HARD TIME COMPREHENDING WHAT GOES ON IN PLACES LIKE ANGOLA OR BOSNIA FOR THAT MATTER WHAT HAPPENS UNHAPPILY IS THAT ONCE THE IRON HAND OF THE PORTUGUESE COLONIALISTS OR THE TITOIST COMMUNISTS IS LIFTED THE QUESTION OF LOCAL POWER IS THROWN OPEN SIMPLE PEOPLE RETREAT OUT OF FEAR INTO THE ETHNIC LAAGER CONVINCED THAT IT'S EITHER KILL OR BE KILLED THIS BECOMES A SELFFULFILLING FEAR HOW MANY TIMES IN TV INTERVIEWS WITH YUGOSLAVIANS HAVE WE HEARD SOME VARIATION ON THE FOLLOWING AFTER THIS SERB AND CROAT OR SERB AND MUSLIM OR SERB AND ANYBODY CAN NEVER AGAIN LIVE IN PEACE THE SUN HAVING SET ON THE SOVIET EMPIRE AMERICANS NOW HAVE LITTLE STRATEGIC INTEREST IN HELPING MR SAVIMBI PURSUE HIS AMBITIONS THERE OUGHT TO BE PEACE FOR HUMANITARIAN REASONS AND BECAUSE OF ANGOLA'S OIL YESTERDAY THE ANGOLAN FACTIONS BEGAN PEACE TALKS IN THE IVORY COAST WESTERN DIPLOMATS ARE OFTEN TOO EAGER FOR ANY DEAL THAT SEEMS TO SHUT DOWN THE FIGHTING THE WORST ASPECT OF AN ARRANGED OUTCOME HERE OR ELSEWHERE IS THAT IT LEAVES THE COUNTRY'S POPULATION ON THE WRONG SIDE OF HISTORY PEOPLE ON THE LEADING EDGE OF HISTORY ALREADY POSSESS OR ARE BUILDING CIVIC POLITICAL AND ECONOMIC STRUCTURES SUITED TO PARTICIPATING IN AN INTEGRATING WORLD ECONOMY OF GOODS SERVICES AND INFORMATION SUCCESS IN THAT EMERGING WORLD DEPENDS CRUCIALLY ON ENSURING THAT A COUNTRY'S BEST MINDS AND MOST ENERGETIC BODIES ARE FREE TO MAKE POLITICAL AND ECONOMIC CHOICES THAT MEANS FREE MARKETS AND FREE ELECTIONS WE DON'T DOUBT THAT TALENTED PEOPLE EXIST IN ANGOLA BOSNIA AND ELSEWHERE BY AND LARGE THOUGH THEIR MOST PROMINENT POLITICAL FIGURES ARE STILL THE POWERSEEKERS WITHIN THESE PROTONATIONS WHO WERE ADEPT AT AFFILIATING WITH A SUPERPOWER EVERY CASE IS DIFFERENT BUT ONE IMMEDIATE GOAL OF DIPLOMACY EITHER THE STRIPEDPANTS OR GUNBOAT VARIETY SHOULD BE TO KEEP THE CONFLICT LOCAL FOR THE LONGER RUN THE SOLUTIONS FOR ETHNICALLY DIVIDED COUNTRIES ARE CLEARER TAKE THE ECONOMY AWAY FROM THE STATE AND DISTRIBUTE IT TO THE PEOPLE THAT WAY THE STATE DOESN'T BECOME A FOOTBALL WORTH FIGHTING AND DYING OVER FINALLY REDISTRIBUTE POLITICAL POWER TO A SELFDETERMINING ELECTORATE SEE RELATED LETTER LETTERS TO THE EDITOR POGROMS AND ELECTION FRAUD IN ANGOLA WSJ MAY 12 1993 9304140093 YY93 MM05 9305120120 930414 REVIEW & OUTLOOK EDITORIAL CLINTONITES RAM GM BY THE GOVERNMENT'S OWN STANDARDS YOU ARE NO MORE LIKELY TO DIE IN A GENERAL MOTORS PICKUP TRUCK THAN IN ONE BUILT BY FORD OR DODGE YET THE CLINTON PEOPLE ARE LEANING ON GM TO RECALL FIVE MILLION TRUCKS MADE IN THE YEARS 1973 TO 1987 AND IN EFFECT MAKE THEM EVEN SAFER THAN THEIR COMPETITORS ALL THIS COULD COST GENERAL MOTORS 1 BILLION AT A TIME WHEN THE WORLD'S BIGGEST INDUSTRIAL COMPANY IS STRUGGLING TO REMAKE ITSELF ARE THESE THE JOBS AND COMPETITIVENESS POLICIES WE WERE PROMISED DURING THE CAMPAIGN THIS ACTION REFLECTS A LACK OF JUDGMENT IT'S IMPORTANT TO UNDERSTAND WHAT THE GOVERNMENT IS NOT SAYING ABOUT GM'S LARGE PICKUPS IT'S NOT SAYING THAT THEY KILL MORE OF THEIR DRIVERS AND PASSENGERS THAN DO COMPARABLE MODELS BUILT BY FORD OR DODGE ON THE CONTRARY YOU'RE NOT SIGNIFICANTLY MORE LIKELY TO DIE IN ONE MODEL THAN THE OTHERS AND YOU'RE BETTER OFF IN ANY OF THE THREE THAN IN A LIGHT PICKUP OR IN THE AVERAGE PASSENGER CAR OVERALL THERE IS NO QUESTION THAT THE TRUCKS ARE SAFE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ENFORCEMENT CHIEF WILLIAM A BOEHLY TOLD THE JOURNAL ON FRIDAY ALSO THE GM'S GAS TANKS ARE OFFICIALLY SAFE WHEN CRASHED AT SPEEDS SET BY THE AGENCY'S RULES SO WHAT'S THE BEEF IN A SIDE COLLISION GM TRUCKS ARE 24 TIMES MORE LIKELY TO CATCH FIRE THAN THE COMPARABLE FORDS BUT THIS DOESN'T MEAN THAT YOU'RE MORE LIKELY TO DIE IN A SIDECRASH IN THE GM TRUCK ONLY THAT IF YOU DO DIE IT'S MORE LIKELY THAT FIRE WAS INVOLVED SUPPOSEDLY THE REASON IS GM'S SIDEMOUNTED GAS TANKS WHICH THE NATIONAL HIGHWAY TRANSPORTATION SAFETY ADMINISTRATION NOW REGARDS AS A DESIGN DEFECT NOW IF YOU'RE MORE LIKELY TO BURN TO DEATH IN A GM TRUCK BUT NO MORE LIKELY TO DIE IN OVERALL TERMS THIS WOULD SUGGEST THAT IN OTHER WAYS GM ACTUALLY MAKES A SAFER PRODUCT IF FEWER FORD AND DODGE PASSENGERS ARE BURNING TO DEATH MORE MUST BE DYING FROM CRUSHED SKULLS INTERNAL HEMORRHAGING AND THE LIKE SINCE GM'S DESIGNERS HAVE FOUND A WAY TO MINIMIZE THESE OTHER KINDS OF DEATH DOES THIS IMPLY A DESIGN DEFECT IN ITS COMPETITORS' PRODUCTS OUR PURPOSE HERE ISN'T TO BE GHOULISH BIG AND HEAVY PIECES OF METAL THAT WHIZ AROUND AT HIGH RATES OF SPEED UNDER THE CONTROL OF FALLIBLE HUMANS ARE FROM TIME TO TIME GOING TO COLLIDE WITH EACH OTHER OR STATIONARY OBJECTS AND PEOPLE WILL DIE BEING OF SOMEWHAT DIFFERENT DESIGN VARIOUS MODELS WILL PRODUCE A SLIGHTLY DIFFERENT PATTERN OF INJURY ON THE BODIES THAT ARE PULLED FROM THESE WRECKS EVEN THOUGH ON AVERAGE NO MORE BODIES ARE PULLED FROM ONE BRAND THAN ANOTHER THIS ADMINISTRATION CONTINUES TO ACT LIKE THE MAN WHO'S DRIVING AROUND LOST BUT REFUSES TO STOP TO ASK FOR DIRECTIONS FROM GAYS IN THE MILITARY TO THE CONDITION OF US AIRLINES THE CLINTONITES SEEM MORE INTERESTED IN DISPLAYING THEIR ACTIVIST ENERGY THAN BOTHERING TO FIGURE OUT EXACTLY WHERE THEY'RE TAKING THE REST OF US OF COURSE ONCE THE POLICY TRAIN IS MOVING IT HAS TO GO SOMEWHERE AND IT'S INCREASINGLY EVIDENT THAT THIS TRAIN'S DIRECTION IS LARGELY DETERMINED BY THE CACOPHONY OF VOICES THAT THIS ADMINISTRATION CONSIDERS ITS CONSTITUENTS NOT LEAST ARE THE TRIAL LAWYERS WHO DONATED GENEROUSLY TO THE CLINTON CAMPAIGN THEY SURELY MIGHT BE EXPECTED TO GIVE AN EARFUL OF THEIR VIEWS ON GM'S PICKUPS AFTER ALL THEY'VE BEEN SUING GM FOR YEARS AND WITH CONTINGENCYFEE ARRANGEMENTS SEE QUITE A POT AT THE END OF THE RAINBOW THAT POT DRAWS CLOSER WHEN THE UNIVERSE OF POTENTIAL JURORS IS EXPOSED TO HEADLINES AND ANCHORPERSONS PROCLAIMING A MASS RECALL OF GM TRUCKS THE LAWYERS HAVE THEIR COMRADES IN THE NADERITES ESPECIALLY JOAN CLAYBROOK OF PUBLIC CITIZEN WHO RAN NHTSA FOR THE LAST LIBERAL DEMOCRATIC PRESIDENT JIMMY CARTER AND CLARENCE DITLOW OF THE CENTER FOR AUTO SAFETY WHO GOES AROUND CALLING GM TRUCKS ROLLING FIREBOMBS WHETHER THE CRUSADE OF THE MOMENT CONCERNS THE ENVIRONMENT NUTRITION OR CONSUMER SAFETY IT'S REALLY AN IDEOLOGICAL HOSTILITY TO BIG BUSINESS THAT DRIVES THESE GROUPS MEDIA EAGERNESS HELPS WITNESS NBC'S NOWNOTORIOUS DATELINE CONFRONTED WITH A COMPLEX ECONOMIC STORY WHICH EDITORS OR NEWS DIRECTORS MAY BURY SOME REPORTERS TAKE REFUGE IN THE SHOPWORN CLICHE OF THE PREDATORY BUSINESSMAN THOUGH MOST JOURNALISTS DON'T GO AS FAR AS DELIBERATELY TORCHING TRUCKS TO MANUFACTURE EVIDENCE WE DON'T KNOW WHAT POSSESSED TRANSPORTATION SECRETARY FEDERICO PENA TO SIGN OFF ON THE DEMAND THAT GM VOLUNTARILY RECALL THE TRUCKS A BELTWAY ARRIVISTE MR PENA SEEMS TO ENJOY THROWING HIS WEIGHT AROUND AS WITH HIS REQUEST THAT NORTHWEST VOLUNTARILY REFRAIN FROM GOING TO THE MAT WITH UPSTART RENO AIR WE MIGHT SAY THE SAME ABOUT THE PRESIDENT HIMSELF AND HIS BRUTALIZATION OF THE DRUG INDUSTRY IT SEEMS THE CLINTONITES HAVE DISCOVERED THE POWER TO BULLY FROM THE PULPIT ALL THEY NEED NOW IS TO FIGURE OUT WHAT PURPOSE THEIR BULLYING SHOULD SERVE SEE RELATED LETTER LETTERS TO THE EDITOR LET'S FACE SOME FACTS ABOUT VEHICLE FATALITIES 9304140089 YY93 MM05 9305120147 930329 POLITICS & POLICY ADMINISTRATION IS TRYING TO WOO SMALL BUSINESS IN BID TO OVERHAUL NATION'S HEALTHCARE SYSTEM BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHEN HILLARY RODHAM CLINTON'S HEALTHCARE TASK FORCE HOLDS ITS FIRST PUBLIC HEARING TODAY REPRESENTATIVES FROM SCORES OF INTEREST GROUPS ARE EXPECTED TO TESTIFY JOHN MOTLEY CHIEF LOBBYIST FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WON'T BE AMONG THEM THE REASON THE POWERFUL SMALLBUSINESS ASSOCIATION WHICH BOASTS THAT IT HAS 1000 TO 2000 MEMBERS IN EVERY CONGRESSIONAL DISTRICT TURNED DOWN AN INVITATION TO APPEAR ITS MEMBERS FEAR THAT PRESIDENT CLINTON'S EVENTUAL HEALTHCARE PROPOSAL WOULD IMPOSE CRIPPLING COSTS ON THEM SAYS MR MOTLEY I MIGHT AS WELL SPEND MY TIME GETTING READY TO FIGHT MANY ADMINISTRATION OFFICIALS BELIEVE THAT SMALL BUSINESS NOT DOCTORS HOSPITALS INSURANCE FIRMS OR DRUG COMPANIES WILL BE THE BIGGEST OBSTACLE TO THE PRESIDENT'S PLAN MANY SMALL BUSINESSES MAY FIERCELY RESIST THE PROPOSAL WARNED IRA MAGAZINER THE WHITE HOUSE ADVISER WHO IS RUNNING THE DAILY OPERATIONS OF THE HEALTHCARE EFFORT IN HIS INITIAL MEMO TO THE TASK FORCE IN JANUARY AS A RESULT THE ADMINISTRATION IS URGENTLY TRYING TO WOO SMALL EMPLOYERS BOTH BY REACHING OUT TO GROUPS OTHER THAN THE OVERWHELMINGLY REPUBLICAN NFIB AND BY PUTTING TOGETHER A PACKAGE OF TAX CREDITS OR OTHER FINANCIAL ASSISTANCE TO HELP SMALL FIRMS COPE EVEN IF IT MEANS HIGHER TAXES FOR EVERYONE ELSE WE HAVE TO HAVE A PACKAGE FOR SMALL BUSINESS SAYS HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA MR MAGAZINER OFTEN REMINDS AUDIENCES THAT HE WAS ONCE A SMALLBUSINESS OWNER AND EMPATHIZES WITH HOW EXPENSIVE IT IS TO BUY HEALTH INSURANCE THE BIGGEST PROBLEM IS THAT MANY SMALLBUSINESS OWNERS VEHEMENTLY OPPOSE THE ADMINISTRATION'S EXPECTED PROPOSAL TO REQUIRE ALL EMPLOYERS TO CONTRIBUTE TO THE COST OF HEALTH BENEFITS FOR THEIR WORKERS THE NFIB'S MR MOTLEY SAYS HE HAS FLATLY TOLD MR MAGAZINER THAT THE MANDATE IS NONNEGOTIABLE CURRENTLY AN ESTIMATED TWOTHIRDS OF SMALL EMPLOYERS PAY FOR AT LEAST PART OF AN EMPLOYEE HEALTH PLAN BUT MANY OF THE OTHERS CLAIM THAT HAVING TO PURCHASE WORKER COVERAGE WILL PUT THEM OUT OF BUSINESS AND EVEN SOME WHO DO PROVIDE COVERAGE DENOUNCE THE IDEA OF THE GOVERNMENT TELLING THEM WHAT TO DO ONCE THEY TALK ABOUT AN EMPLOYER MANDATE IT BOTHERS ME SAYS RAYMOND ARTH JR PRESIDENT OF PHOENIX PRODUCTS INC A CLEVELAND FAUCET MAKER THAT PROVIDES INSURANCE FOR ITS 65 WORKERS THROUGH A COALITION OF SMALL BUSINESSES THAT RESEMBLES THE KIND OF PURCHASING NETWORK THE WHITE HOUSE WANTS TO SET UP ACROSS THE NATION A MANDATE HE CONTENDS WILL DESTROY COMPANIES AND DESTROY JOBS ADMINISTRATION OFFICIALS COUNTER THAT IF ANYONE SHOULD SUPPORT AN OVERHAUL OF THE HEALTHCARE SYSTEM IT'S SMALLBUSINESS OWNERS AFTER ALL THEY SAY SMALL COMPANIES HAVE SUFFERED MORE THAN ALMOST ANYONE ELSE UNDER THE CURRENT HEALTH SYSTEM AND IF THE WHITE HOUSE SUCCEEDS IN BRINGING DOWN MEDICAL COSTS SMALL COMPANIES STAND TO GAIN MORE THAN MOST ANYONE HEALTHCARE REFORM WILL BE ONE OF THE BEST THINGS TO EVER HAPPEN TO SMALL BUSINESS ARGUES PAUL BEGALA A CLINTON POLITICAL ADVISER THE KEY ADMINISTRATION OFFICIALS THINK IS TO COMMUNICATE THAT MESSAGE TO GROUPS OTHER THAN THE NFIB TOP ADMINISTRATION HEALTH OFFICIALS HAVE MET WITH SUCH GROUPS AS NATIONAL SMALL BUSINESS UNITED THE SMALL BUSINESS LEGISLATIVE COUNCIL AND THE NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS AND THOSE GROUPS THOUGH THEY TOO HAVE SOME RESERVATIONS ABOUT THE ADMINISTRATION'S TACK HAVE ACCEPTED INVITATIONS TO TESTIFY BEFORE THE TASK FORCE TODAY THEIR APPEARANCE ADMINISTRATION OFFICIALS HOPE WILL DEMONSTRATE THAT THE NFIB DOESN'T SPEAK FOR ALL OF SMALL BUSINESS GARY FRANK PETTY PRESIDENT OF AN ASSOCIATION REPRESENTING LOCAL MOVING AND STORAGE COMPANIES SAYS IN TESTIMONY PREPARED ON BEHALF OF THE SMALL BUSINESS LEGISLATIVE COUNCIL THAT THE PRESIDENT'S PLAN SHOULD HAVE CREDIBLE COST CONTROLS ADDRESS SPIRALING WORKERS' COMPENSATION INSURANCE COSTS AND REQUIRE WORKERS AS WELL AS EMPLOYERS TO PAY SOME HEALTH PREMIUMS IF MR CLINTON'S PLAN INCLUDES SUCH PROVISIONS HE SAYS WE BELIEVE YOU WILL BE ABLE TO MAKE A STRONG CASE TO SMALL BUSINESS THAT THEY NEED TO BE A PART OF A COMPREHENSIVE SOLUTION THE ADMINISTRATION'S ULTIMATE SUCCESS IN COURTING SMALL BUSINESSES WILL BE DETERMINED BY THE SIZE OF THE CARROT IT DANGLES IN FRONT OF THEM BUT FIGURING OUT HOW BIG THAT CARROT SHOULD BE AND WHO SHOULD BE ENTITLED TO IT IS A TRICKY TASK ONE PROBLEM IS THAT ANY ASSISTANCE ONLY FOR EMPLOYERS WHO AREN'T NOW BUYING HEALTH INSURANCE WILL SURELY INFURIATE THOSE WHO HAVE BEEN PROVIDING COVERAGE ALL ALONG WE'D BE PUNISHED FOR HAVING DONE SOMETHING THAT WE THOUGHT WAS THE RIGHT THING TO DO SAYS JEAN JOHNSON THE MANAGER OF JOHNSON ELECTRIC & SUPPLY OF SPRUCE PINE NC WHICH FOR YEARS HAS STRUGGLED TO MAINTAIN BLUE CROSSBLUE SHIELD COVERAGE FOR ITS FOUR EMPLOYEES BUT GIVING A MEANINGFUL SUBSIDY TO ALL EMPLOYERS WITH SMALL WORK FORCES WOULD BE EXTREMELY COSTLY AND IT TOO COULD BE ATTACKED AS UNFAIR A LAW FIRM WITH FIVE AFFLUENT PARTNERS CERTAINLY WOULDN'T NEED GOVERNMENT ASSISTANCE TO PROVIDE HEALTH COVERAGE TO NAVIGATE THIS MINEFIELD CLINTON AIDES ARE CONSIDERING SEVERAL OPTIONS INCLUDING AWARDING TAX CREDITS BASED NOT ON A FIRM'S SIZE BUT ITS AVERAGE WAGES OR AWARDING CREDITS NOT TO THE FIRM BUT DIRECTLY TO ITS LOWWAGE WORKERS SETTING UP A RAINY DAY FUND A POT OF MONEY TO PROVIDE ASSISTANCE TO SMALL EMPLOYERS WHO DEMONSTRATE A NEED OFFICIALS WOULDN'T DISCLOSE THE AMOUNTS UNDER CONSIDERATION HAWAII WHICH REQUIRES ALL EMPLOYERS TO COVER THEIR WORKERS HAS SUCH A FUND WHICH IT USES TO PROVIDE LOANS AND GRANTS TO HELP VERY SMALL BUSINESSES SIMPLY DELAYING THE DATE BY WHICH SMALL EMPLOYERS WOULD BE REQUIRED TO PROVIDE HEALTH INSURANCE UNTIL THE NEWLY RESTRUCTURED HEALTH SYSTEM IS UP AND RUNNING THE IDEA IS THAT BY THEN BUYING HEALTH INSURANCE WOULDN'T BE SUCH A STRAIN ON SMALL COMPANIES WHICH WOULD BE ABLE TO JOIN HUGE BUYING NETWORKS OF BIGGER BUSINESSES AND INDIVIDUALS BUT IT'S FAR FROM CLEAR WHETHER THESE OR ANY OTHER OPTIONS BEING DISCUSSED WILL BE ENOUGH TO ASSUAGE EMPLOYERS LIKE SHARON BEARD OWNER OF HURRICANE FENCE CO A NINEPERSON SPRINGFIELD ILL COMPANY THE COMPANY IS ALREADY OVERWHELMED BY THE HEALTH INSURANCE PREMIUMS IT PAYS FOR ITS WORKERS SHE SAYS AND THE PROSPECT OF WHAT MR CLINTON MAY PROPOSE IS EVEN SCARIER A LOT OF SMALL BUSINESS OWNERS FEEL VERY THREATENED RIGHT NOW SHE SAYS A THIRD OF THE NATION'S SMALL BUSINESSES SAID IN A SURVEY LAST YEAR THAT THEIR COSTS FOR EMPLOYEE HEALTH BENEFITS INCREASED BY MORE THAN 25 OVER THE PRECEDING 12 MONTHS SEE RELATED LETTER LETTERS TO THE EDITOR SMALLBUSINESS OWNERS BACK MEDICAL REFORM WSJ MAY 12 1993 9303290145 YY93 MM05 9305110166 930511 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 SHEARSON LEHMAN BROTHERS INC 150 MILLION OF SUBORDINATED NOTES DUE MAY 17 1996 PRICED TO FLOAT QUARTERLY AT A SPREAD OF 0625 PERCENTAGE POINT ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE WHICH IS CURRENTLY AT 31875 THE NONCALLABLE ISSUE WHICH PAYS INTEREST QUARTERLY IS RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS SHEARSON LEHMAN BROTHERS IS A UNIT OF AMERICAN EXPRESS CO TAMPA ELECTRIC CO 155 MILLION TWOPART ISSUE OF FIRST MORTGAGE BONDS PRICED THROUGH CHASE SECURITIES INC ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 80 MILLION OF FIRST MORTGAGE BONDS DUE MAY 1 2000 WAS PRICED AS 5 3/4S AT 99527 TO YIELD 5833 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 028 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE THE SECOND PART CONSISTING OF 75 MILLION OF FIRST MORTGAGE BONDS DUE MAY 1 2003 WAS PRICED AS 6 1/8S AT 99094 TO YIELD 6248 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 033 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE BOTH PARTS ARE RATED DOUBLEA1 BY MOODY'S AND DOUBLEA BY S&P TAMPA ELECTRIC IS A UNIT OF TECO ENERGY INC EVERGREEN MEDIA CORP INITIAL OFFERING OF 35 MILLION COMMON SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP CHICAGO 223665 MILLION GENERAL OBLIGATION EMERGENCY TELEPHONE SYSTEM BONDS TENTATIVELY PRICED BY A KEMPER SECURITIES GROUP TO YIELD FROM 445 IN 1998 TO 585 IN 2023 THE BONDS ARE FGICINSURED AND RATED TRIPLEA BY BOTH MOODY'S AND S&P CYPRESSFAIRBANKS INDEPENDENT SCHOOL DISTRICT TEXAS 106 MILLION UNLIMITED TAX REFUNDING BONDS TENTATIVELY PRICED BY A FIRST BOSTON CORP GROUP TO YIELD FROM 52 IN 2004 TO 605 IN 2016 THE BONDS ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 161 MILLION HOSPITAL REVENUE REFUNDING BONDS OAKWOOD HOSPITAL OBLIGATED GROUP SERIES 1993 TENTATIVELY PRICED BY UNDERWRITERS LED BY BEAR STEARNS & CO TO YIELD FROM 28 IN 1994 TO 575 IN 2018 THE BONDS ARE FGICINSURED AND RATED TRIPLEA BY BOTH MOODY'S AND S&P OKLAHOMA CITY 10418 MILLION GENERAL OBLIGATION REFUNDING BONDS SERIES 1993 TENTATIVELY PRICED BY A STIFEL NICOLAUS & CO GROUP TO YIELD FROM 28 IN 1994 TO 565 IN 2011 THE BONDS ARE RATED DOUBLEA BY BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 3601 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1536 IS BACKED BY THE AGENCY'S SEVENYEAR 65 BALLOON SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 67 YEARS EUROPEAN INVESTMENT BANK SUPRANATIONAL 2 BILLION FRENCH FRANCS OF 6 3/4 FUNGIBLE EUROBONDS DUE MAY 14 1998 AT ISSUE AND FIXED REOFFER PRICE 9954 VIA CREDIT COMMERCIAL DE FRANCE FUNGIBLE FROM JUNE 14 WITH 2 BILLION FRANCS OF OUTSTANDING BONDS BONDS YIELD 686 ANNUAL A SPREAD OF 10 BASIS POINTS ABOVE 8 BON A TAUX FIXE ET INTERET ANNUEL DUE MAY 1998 FEES 025 POINT REPUBLIC OF FINLAND SOVEREIGN 2 BILLION AUSTRIAN SCHILLINGS OF 6 7/8 PUBLIC BONDS DUE MAY 26 1998 PRICED AT 100 3/4 VIA CREDITANSTALT BANKVEREIN FEES 18 POINTS 9305110165 930511 SUN MICROSYSTEMS COMPUTERS MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC SAID IT HAS BEGUN SELLING TWO NEW HIGHEND SERVER COMPUTERS WITH THE COMPUTE POWER OF MAINFRAME COMPUTERS THE SPARCSERVER 1000 MODEL CAN BE EXPANDED TO USE AS MANY AS EIGHT MICROPROCESSORS AS ITS BRAINS WHICH WOULD PROVIDE MAINFRAME POWER AT A FRACTION OF THE COST OF A MAINFRAME A BASE MODEL OF THE SYSTEM IS PRICED AT 36700 A NEW HIGHEREND SPARCCENTER 2000 MODEL HAS MICROPROCESSORS THAT ARE 30 FASTER THAN A PREVIOUS MODEL CAN BE EXPANDED TO USE AS MANY AS 20 MICROPROCESSORS AND CAN ACCOMMODATE AS MANY AS 1000 USERS THE COMPUTER MAKER SAID PRICES FOR THE 2000 MODEL BEGIN AT 95000 9305110164 930511 REGULATORY CHOKEHOLD OUR FRIEND THE REVOLVING DOOR BY PHILLIP D BRADY AS A RECENT REFUGEE OF THE BUSH WHITE HOUSE I FIND MYSELF READING WITH PARTICULAR INTEREST PRESS ACCOUNTS ABOUT THE CRITICAL NEED TO CLOSE THE SOCALLED REVOLVING DOOR BETWEEN THE PUBLIC AND THE PRIVATE SECTOR MY EXPERIENCE THOUGH IS THAT THE ETHICS LAWS RELATING TO FORMER GOVERNMENT EMPLOYEES ARE PLENTY STRICT IN FACT GIVEN THE COMPLEXITY OF GOVERNMENT TODAY IT'S AN INATTENTIVE ORGANIZATION OR ASSOCIATION THAT DOESN'T SEEK TO EMPLOY INDIVIDUALS WITH SPECIALIZED GOVERNMENT EXPERIENCE IN ITS AREA OF INTEREST I'D EVEN GO ONE STEP FURTHER AND SUGGEST THAT IT IS IN THE PUBLIC INTEREST THAT THE REVOLVING DOOR CONTINUE TO REVOLVE TO BE SURE MY INTEREST IS NOT ACADEMIC I SPENT 12 YEARS WORKING IN FEDERAL GOVERNMENT PRINCIPALLY IN CONGRESS THE JUSTICE DEPARTMENT THE DEPARTMENT OF TRANSPORTATION AND THE WHITE HOUSE ON JAN 20 I FOUND MYSELF LOOKING FOR WORK AND SUBSEQUENTLY JOINED AN ASSOCIATION THAT REPRESENTS THE BIG THREE AUTO MAKERS WHILE I NEVER ENVISIONED MYSELF BECOMING PART OF AN INDUSTRY ASSOCIATION I DID WANT TO DO SOMETHING THAT MADE PRODUCTIVE USE OF THE SIGNIFICANT PORTION OF MY PROFESSIONAL CAREER THAT I'D SPENT IN GOVERNMENT I INTERVIEWED WITH BOTH LAW FIRMS AND TRADE ASSOCIATIONS IN WASHINGTON I WAS ALWAYS QUIZZED CLOSELY AND OFTEN TO MY DETRIMENT ON THE POSTEMPLOYMENT RESTRICTIONS THAT APPLIED TO ME AS A CONSEQUENCE OF MY GOVERNMENT SERVICE NOW THAT I'M ON THE OTHER SIDE I FIND MYSELF CONSTANTLY MARVELING AT HOW DIFFICULT IT IS FOR PRIVATE INDUSTRY ORGANIZATIONS AND INTEREST GROUPS GENERALLY TO TRULY KNOW WHAT'S GOING ON IN OUR GOVERNMENT MUCH LESS TO EFFECTIVELY INFLUENCE THOSE GOINGSON WHILE LAWS ARE ON THE BOOKS ESTABLISHING PROCEDURES FOR PETITIONING THE GOVERNMENT REQUIRING THAT CERTAIN GOVERNMENT MEETINGS BE OPEN AND MANDATING THAT GOVERNMENTAL DECISIONS BE MEMORIALIZED THE SHEER VOLUME OF GOVERNMENT ACTIVITIES MAKES REPRESENTATIVE ASSOCIATIONS IN SOME FORM A VIRTUAL GIVEN THE FEDERAL REGISTER ALONE TURNS OUT SOME 63000 PAGES A YEAR A NINEFOOT STACK OF EDICTS AFFECTING ALL ASPECTS OF OUR BUSINESS AND PERSONAL LIVES IN THE INDUSTRY I'M ASSOCIATED WITH THERE ARE MORE THAN 100 SEPARATE RULEMAKINGS PENDING AT ONE AGENCY THE EPA ARISING PRIMARILY FROM ONE NEW LAW THE 1990 CLEAN AIR ACT MANY OF THOSE RULEMAKINGS REQUIRE CONSULTATION WITH OTHER AGENCIES THEY ALL HAVE A CUMULATIVE IMPACT SOME HAVE THE POTENTIAL TO CONFLICT WITH OTHER GOALS FOR EXAMPLE BALANCING ENVIRONMENTAL CONCERNS AND AUTOMOTIVE SAFETY IN RECONCILING ALL THESE FACTORS GOVERNMENT NEEDS THE ACTIVE PARTICIPATION OF THOSE DIRECTLY AFFECTED BY THE PROPOSED GOVERNMENT ACTION OFTEN WORKING THROUGH THEIR ASSOCIATIONS THESE INTERESTED PARTIES PRESENT THEIR BEST CASE WHEN THEY EMPLOY PEOPLE WHO YES HAVE PRIOR GOVERNMENT SERVICE CERTAINLY THERE ARE INSTANCES WHERE ONE'S SUBSTANTIAL INVOLVEMENT IN A PARTICULAR MATTER WHILE IN GOVERNMENT SERVICE SHOULD PRECLUDE TAKING IMPROPER ADVANTAGE OF THE SITUATION BUT THE LAW ALREADY PROHIBITS SUCH ABUSE AN ANALOGY FROM THE LEGAL ARENA COMES TO MIND A PARTY CAN HARDLY BE BLAMED FOR SEEKING A LAWYER WHO IS KNOWLEDGEABLE ABOUT THE RELEVANT AREA OF THE LAW THE RELEVANT COURT AND THE RELEVANT PRACTITIONERS IN THE FIELD AT THE SAME TIME THE LAWYER CANNOT BE SOMEONE WHO PREVIOUSLY SERVED AS THE LAWYER FOR THE OTHER SIDE JUST AS THE BASIC PREMISE OF OUR LEGAL SYSTEM IS THAT THE FAIREST RESULT WILL BE ACHIEVED WHEN ALL SIDES OF ANY DISPUTE PUT FORTH THEIR BEST CASE WITHIN THE RULES USING TRAINED ADVOCATES SO TOO FAIR GOVERNMENT RELIES UPON THE SUBMISSIONS OF INTERESTED PARTIES WITHIN THE LAW THE REALITY OF MODERN GOVERNMENT IS THAT MOST MAJOR BILLS PASSED BY CONGRESS CONTAIN LANGUAGE REFLECTING LEGISLATIVE COMPROMISES THAT OFTEN REQUIRE EXTENSIVE AGENCY INTERPRETATION GOOD ARGUMENTS CAN BE MADE IN GOOD FAITH AS TO DIFFERING INTERPRETATIONS OF THAT LANGUAGE AS EVIDENCED BY THE NEED FOR THE ORIGINAL LEGISLATIVE COMPROMISE THE REALITY AGAIN IS THAT WHILE DISINTERESTED RESEARCH WITH RESPECT TO ISSUES IS IMPORTANT LEGISLATORS THEIR STAFF AND CIVIL SERVANTS COUNT ON HELP FROM INTERESTED PARTIES TO RESOLVE THE ISSUES WHEN THOSE PARTIES SAY THE AUTO MAKERSDON'T VOICE THEIR OPINIONS LEGISLATORS OR REGULATORS OFTEN SOLICIT THEM IT'S UP TO GOVERNMENT TO BALANCE THE PERSPECTIVES IT'S MY VIEW PERHAPS CONTRARY TO POPULAR OPINION THAT GOVERNMENT OFFICIALS GET IT RIGHT MORE OFTEN THAN WRONG OF COURSE THERE HAVE BEEN ETHICAL LAPSES AND LOBBYING ABUSES TOO MANY BUT WE SHOULDN'T CONDEMN TOO QUICKLY THE REVOLVING DOOR IT HAS BEEN THE EXPERIENCE OF THIS PASSENGER THAT THE VAST MAJORITY ON BOTH SIDES OF THE DOOR ACT IN GENUINE GOOD FAITH TO MAKE OUR SYSTEM WORK THE PUBLIC AND PRIVATE SECTORS ARE NOT AND WERE NEVER INTENDED TO BE SEALED OFF FROM ONE ANOTHER IT'S THE ROLE OF YOUR FRIENDLY LOBBYIST TO ENSURE THAT THAT'S ALWAYS SO MR BRADY IS VICE PRESIDENT AND GENERAL COUNSEL FOR THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION 9305110163 930511 WHO'S NEWS LA SALLE PARTNERS LA SALLE PARTNERS CHICAGO R BRUCE ROBERTSON 49 YEARS OLD WAS NAMED VICE PRESIDENT OF THIS INTERNATIONAL REALESTATE INVESTMENT AND SERVICES FIRM HEADING ITS CLIENT SERVICES GROUP IN ITS NEW YORK OFFICE THE POSITION IS NEWLY CREATED MR ROBERTSON PREVIOUSLY WAS A MANAGING DIRECTOR OF DILLON READ & CO AND PRESIDENT OF THE DILLON READ REAL ESTATE INC UNIT 9305110162 930511 WHO'S NEWS BURLINGTON RESOURCES INC BURLINGTON RESOURCES INC SEATTLE GEORGE HOWISON 48 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MERIDIAN OIL INC A UNIT OF THIS NATURAL RESOURCES COMPANY MR HOWISON WHO RETAINS HIS DUTIES AS BURLINGTON'S CHIEF FINANCIAL OFFICER SUCCEEDS THOMAS O'LEARY WHO REMAINS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BURLINGTON 9305110161 930511 FINANCING BUSINESS OSBORN COMMUNICATIONS CORP OSBORN COMMUNICATIONS CORP NEW YORK SAID IT FILED A REGISTRATION STATEMENT TO MAKE A RIGHTS OFFERING TO HOLDERS OF ITS COMMON STOCK AN OPERATOR OF RADIO AND TELEVISION STATIONS AND MUZAK FRANCHISES OSBORN SAID ITS FIRSTEVER RIGHTS OFFERING WILL ENABLE HOLDERS OF COMMON STOCK TO RECEIVE ONE TRANSFERABLE RIGHT FOR EACH TWO SHARES HELD AS OF A RECORD DATE TO BE ANNOUNCED EACH RIGHT CAN BE EXERCISED FOR ONE SHARE OF COMMON AT 2 THE RIGHTS WILL EXPIRE 30 DAYS AFTER BECOMING EFFECTIVE OSBORN PLANS TO RAISE ABOUT 7 MILLION FROM THE 3490000 SHARES AVAILABLE THROUGH THE RIGHTS OFFER AFTER THE RIGHTS ARE EXERCISED OSBORN WOULD HAVE ABOUT 105 MILLION SHARES OUTSTANDING 9305110160 930511 INTERNATIONAL VOLKSWAGEN DENIES PITCH TO LURE BMW EXECUTIVE MUNICH VOLKSWAGEN AG DENIED A GERMAN MEDIA REPORT THAT IT IS ANGLING TO LURE AWAY ONE OF THE MOST INFLUENTIAL EXECUTIVES AT RIVAL BAYERISCHE MOTOREN WERKE AG EARLIER THIS YEAR VW CAUSED A TRANSATLANTIC FLAP BY HIRING AWAY GENERAL MOTORS CORP'S PURCHASING BOSS J IGNACIO LOPEZ DE ARRIORTUA GM'S GERMAN SUBSIDIARY ADAM OPEL AG SOUGHT A LEGAL RESTRAINING ORDER TO STOP VW FROM LURING AS MANY AS 40 GM AND OPEL MANAGERS TO JOIN VW WITH MR LOPEZ ACCORDING TO THE MAGAZINE DER SPIEGEL VW'S CHAIRMAN FERDINAND PIECH HAS MADE A JOB OFFER TO BMW DESIGN AND DEVELOPMENT CHIEF WOLFGANG REITZLE TO TAKE OVER VW'S LUXURY CAR SUBSIDIARY AUDI AG MR PIECH MADE AN OFFICIAL DENIAL TO THE PUBLICATION A SPOKESWOMAN FOR BMW DECLINED TO COMMENT MR REITZLE COULDN'T BE REACHED FOR COMMENT THE 44YEAROLD MR REITZLE IS CREDITED WITH LAUNCHING A NUMBER OF SUCCESSFUL BMW MODELS SPECULATION THAT HE MIGHT LEAVE BMW HAS BEEN RIFE EVER SINCE HE WAS PASSED OVER THIS YEAR AS THE SUCCESSOR TO BMW CHAIRMAN EBERHARD VON KUENHEIM WHO RETIRES THIS MONTH BMW TRYING TO RETAIN ONE OF ITS BEST TALENTS RENEGOTIATED MR REITZLE'S CONTRACT IN MARCH SIGNING HIM FOR A FIVEYEAR PERIOD 9305110159 930511 US WARNS OF RETALIATION TO QANTAS AIRWAYS THREAT WASHINGTON THE CLINTON ADMINISTRATION THREATENED TO RETALIATE AGAINST QANTAS AIRWAYS IF AUSTRALIA CARRIES OUT A THREAT TO RESTRICT NORTHWEST AIRLINES FLIGHTS FROM NEW YORK TO SYDNEY VIA OSAKA NORTHWEST IS A UNIT OF WINGS HOLDINGS INC TRANSPORTATION SECRETARY FEDERICO PENA SAID THE US WILL FORCE QANTAS TO REDUCE ITS SYDNEYLOS ANGELES SERVICE BY THREE NONSTOP WEEKLY FLIGHTS SHOULD AUSTRALIA REVOKE NORTHWEST'S NEW YORKOSAKASYDNEY ROUTE EFFECTIVE MAY 30 WE WOULD HAVE PREFERRED TO RESOLVE THIS DISPUTE THROUGH NEGOTIATIONS MR PENA SAID THE FLAP WAS TOUCHED OFF BY THE AUSTRALIAN GOVERNMENT'S INSISTENCE ON LIMITING THE NUMBER OF PASSENGERS THAT NORTHWEST CAN CARRY BETWEEN OSAKA AND SYDNEY MR PENA SAID SUCH RESTRICTIONS WOULD VIOLATE THE AVIATION AGREEMENT BETWEEN THE TWO COUNTRIES LAST MONTH IN ANNOUNCING PLANS TO REVOKE NORTHWEST'S ROUTE AUTHORITY THE AUSTRALIANS ALSO WARNED THAT IF NORTHWEST REAPPLIED FOR THE ROUTE THEY WOULD APPROVE ONLY TWO OF ITS THREE WEEKLY FLIGHTS AND ONLY IF NO MORE THAN HALF OF ITS TRAFFIC WERE OSAKASYDNEY PASSENGERS 9305110158 930511 FINANCING BUSINESS DYLEX LTD DYLEX LTD TORONTO SAID IT PLANS TO ISSUE 110 MILLION CANADIAN DOLLARS US867 MILLION OF 9 CONVERTIBLE SUBORDINATED DEBENTURES THE PROCEEDS WILL BE USED TO REDEEM ITS OUTSTANDING ISSUE OF 1238 CONVERTIBLE SUBORDINATED DEBENTURES WHICH HAVE A REDEMPTION PRICE OF C110 MILLION AT JUNE 30 DYLEX SAID THE RETAILER SAID THE NEW ISSUE IS CONVERTIBLE INTO DYLEX CLASS A SHARES AT A CONVERSION PRICE OF C165 A SHARE THE ISSUE IS DUE AUG 15 2000 AND SUBJECT TO REGULATORY APPROVAL THE UNDERWRITING GROUP IS LED BY SCOTIAMCLEOD INC DYLEX A SHARES CLOSED YESTERDAY AT C129 UP 27 CANADIAN CENTS IN TORONTO STOCK EXCHANGE TRADING 9305110157 930511 TECHNOLOGY SILICON GRAPHICS TO DEVELOP CHIP JOINTLY WITH GROUP MOUNTAIN VIEW CALIF SILICON GRAPHICS INC SAID IT PLANS TO DEVELOP ITS NEXTGENERATION CHIP FOR HIGHEND DESKTOP SYSTEMS JOINTLY WITH A GROUP OF SEVEN COMPUTER AND ELECTRONICS COMPANIES MIPS TECHNOLOGIES INC A SILICON GRAPHICS UNIT IS WORKING WITH THE GROUP TO DEVELOP A CHIP CODENAMED T5 WHICH IS EXPECTED TO HAVE MORE THAN TWICE THE COMPUTING POWER THAN CHIPS USED IN MANY CURRENTLY AVAILABLE WORKSTATION COMPUTERS THE COMPANY SAID THE PARTNER COMPANIES INCLUDE LSI LOGIC CORP MILPITAS CALIF JAPAN'S NEC CORP AND GERMANY'S SIEMENS AG THE COMPANIES HAVE MANUFACTURED CHIPS FOR SILICON GRAPHICS UNDER PREVIOUS AGREEMENTS THE JOINT DEVELOPMENT PROJECT WILL ALLOW SILICON GRAPHICS TO DEVELOP THE CHIP QUICKLY AND TO MANUFACTURE IT EFFICIENTLY A SILICON GRAPHICS SPOKESMAN SAID THE CHIP WHICH IS BASED ON A DESIGN KNOWN AS REDUCED INSTRUCTION SET COMPUTING OR RISC IS EXPECTED TO BEGIN SHIPPING AT THE END OF 1994 HE SAID THE CHIP IS EXPECTED TO COST ABOUT 150 MILLION TO DEVELOP HE SAID