XTRA CORP BOSTON GILBERT BUTLER WAS NAMED A DIRECTOR OF THIS COMPANY THAT LEASES TRANSPORTATION EQUIPMENT EXPANDING THE BOARD TO 10 MEMBERS MR BUTLER 55 YEARS OLD IS PRESIDENT OF BUTLER CAPITAL CORP A CLOSELY HELD INVESTMENT MANAGEMENT CONCERN WHICH AMONG OTHER INTERESTS PROVIDES MANAGEMENT AND ADVISORY SERVICES TO TWO LIMITED PARTNERSHIPS THAT TOGETHER HOLD ABOUT 21 OF XTRA'S OUTSTANDING COMMON STOCK 9305110155 930511 INTERNATIONAL IRAN NUCLEAR POWER EFFORT HIDES DRIVE FOR WEAPONS SOME US ANALYSTS SAY BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NUCLEAR EXPERTS FROM RUSSIA AND CHINA HAVE BEGUN ARRIVING IN TEHRAN TO WORK ON IRAN'S RAPIDLY EXPANDING CIVILIAN NUCLEAR PROGRAM WHICH SOME US INTELLIGENCE ANALYSTS BELIEVE IS BEING USED TO HIDE AND ACCELERATE A SECRET EFFORT TO BUY OR DEVELOP NUCLEAR WEAPONS THE TEAMS OF EXPERTS ARE SUPPOSEDLY MAKING PREPARATIONS FOR SIX NUCLEAR REACTORS THAT IRAN IS BUYING RUSSIA IS SELLING TEHRAN TWO 440MEGAWATT POWER REACTORS CHINA IS SUPPLYING TWO SIMILAR POWER REACTORS AND TWO RESEARCH REACTORS THE US INTELLIGENCE ANALYSTS WHO ASKED NOT TO BE IDENTIFIED SAID THAT IRANIAN BUYING TEAMS ARE SHOPPING FOR WEAPONS RELATED NUCLEAR EQUIPMENT AND EXPERTS CONCENTRATING ON SUCH CASH HUNGRY FORMER SOVIET REPUBLICS AS UKRAINE KAZAKHSTAN TURKMENISTAN AND AZERBAIJAN SPOKESMEN FOR THOSE NATIONS HAVE DENIED SELLING WEAPONS MATERIALS TO IRAN MEANWHILE THE US AND OTHER WESTERN COUNTRIES ARE SCRAMBLING TO HELP THE FORMER SOVIET REPUBLICS SET UP WESTERNSTYLE EXPORTCONTROL SYSTEMS IT'S NOT A QUESTION OF WHETHER THESE COUNTRIES ARE AWARE OF EXPORTS OUT OF THEIR COUNTRY THE QUESTION IS DO THEY HAVE THE INSTITUTIONAL RESOURCES TO TRY TO PREVENT SMUGGLING SAID A US OFFICIAL THE IRANIAN REGIME IS USING THE CHAOS TRYING TO PIECE TOGETHER VARIOUS EQUIPMENT FROM DIFFERENT COUNTRIES AND PUT THEM TOGETHER PIECE BY PIECE CHARGED MOHAMMAD MOHADDESSIN AN OFFICIAL OF THE PEOPLE'S MOJAHEDIN OF IRAN AN IRANIAN DISSIDENT GROUP THAT CLOSELY FOLLOWS TEHRAN'S NUCLEAR EFFORTS MR MOHADDESSIN A FORMER ELECTRICAL ENGINEER SAID THE IRANIAN NUCLEAR RESEARCH EFFORT IS SHIFTING FROM TEHRAN TO ISFAHAN WHERE THE CHINESE RESEARCH REACTORS WILL BE INSTALLED CHINA HE SAID IS TRAINING MANY IRANIAN SCIENTISTS AND HAS SOLD THE IRANIANS SEVERAL CALUTRONS MAGNETICISOTOPE SEPARATION DEVICES SIMILAR TO ONES THAT IRAQ USED TO DERIVE ENRICHED URANIUM FOR ITS ATOMICBOMB PROGRAM DAVID KYD A SPOKESMAN FOR THE VIENNABASED INTERNATIONAL ATOMIC ENERGY AGENCY SAID THE AGENCY IS CAREFULLY WATCHING THE CHINESE CONNECTION WE'RE RELATIVELY COMFORTABLE WITH THESE ITEMS HE SAID AGENCY EXPERTS HE SAID BELIEVE THE RESEARCH REACTORS AND THE ONE CALUTRON THAT THE IAEA KNOWS HAS BEEN PURCHASED FROM CHINA ARE TOO SMALL TO BENEFIT A WEAPONS PROGRAM INSPECTORS FROM THE IAEA VISIT IRAN FOUR TIMES A YEAR AND HAVE BEEN PROMISED ACCESS TO ANY FACILITY THAT THEY WANT TO INSPECT DAVID KAY THE FORMER CENTRAL INTELLIGENCE AGENCY ANALYST WHO LED UN INSPECTION TEAMS INTO IRAQ'S NUCLEAR WEAPONS COMPLEX AFTER THE GULF WAR SAID THAT MAY NOT BE ENOUGH THE PRESENCE OF LARGE CIVILIAN NUCLEAR PROJECTS HE BELIEVES WILL HELP CONCEAL OTHER NUCLEAR EFFORTS THIS IS THE BASIC IRAQI PROBLEM ALL OVER AGAIN I THINK THE IRANIANS ARE TOUGHER RICHER AND HAVE MORE ACCESS TO WORLD MARKETS HE SAID IRAN'S CIVILIAN NUCLEAR PROGRAM HAS REEMERGED AFTER WESTERN SUPPLIER NATIONS LED BY THE US HAD ALL BUT STOPPED THE FLOW OF NUCLEAR TECHNOLOGY INTO THE ISLAMIC FUNDAMENTALISTRUN NATION SHIPMENTS FROM ARGENTINA INDIA SPAIN GERMANY AND FRANCE WERE HALTED BECAUSE OF GROWING DOUBTS OVER IRAN'S ASSERTIONS THAT IT DIDN'T HAVE AN ATOMIC BOMB PROGRAM AMIR ZAMANI PRESS COUNSELOR FOR IRAN'S MISSION TO THE UN SAYS IRAN IS ONLY LOOKING FOR NUCLEAR TECHNOLOGY FOR ENERGY PURPOSES HE SAID DOUBTS EXPRESSED IN THE US AND ELSEWHERE ARE A POLITICALLY MOTIVATED EFFORT TO MAKE IRAN A BOGEYMAN TO COMBAT THE RUMORS HE SAID HIS GOVERNMENT HAS BEEN LOOKING FOR WAYS TO STRENGTHEN THE IAEA'S INSPECTION EFFORTS THE IAEA'S TRIPS ARE OFTEN PRECEDED BY A SPATE OF WORRISOME RUMORS FOR EXAMPLE IN JANUARY 1992 A TASK FORCE OF THE HOUSE REPUBLICAN RESEARCH COMMITTEE SAID THERE WAS A 98 CERTAINTY IRAN HAD BOUGHT PARTS FOR AT LEAST TWO SOVIETDESIGNED NUCLEAR WARHEADS AND WAS PREPARING TO ASSEMBLE THEM AT MA'ALEM KELAYAH A REMOTE FENCESHROUDED FACILITY NEAR QAZVIN IN NORTHWEST IRAN A MONTH LATER AN IAEA INSPECTION TEAM GUIDED BY COORDINATES PROVIDED BY US INTELLIGENCE AGENCIES MADE A HELICOPTER LANDING AT MA'ALEM KELAYAH ACCORDING TO MR KYD THEY FOUND A BUNK HOUSE SOME STARTLED MAINTENANCE EMPLOYEES AND TEMPORARY WAREHOUSES FULL OF CONSTRUCTION EQUIPMENT THE BUILDINGS WHEN WE ARRIVED THERE WERE VERY VERY INNOCENT NOW THE REPUBLICAN TASK FORCE ASSERTS THAT THE IAEA WAS TAKEN TO THE WRONG PLACE 9305110154 930511 TECHNOLOGY PACIFIC TELESIS UNIT TO BUY EQUIPMENT FROM MOTOROLA NORTEL WALNUT CREEK CALIF PACIFIC TELESIS GROUP'S CELLULAR TELEPHONE UNIT SAID IT AGREED TO BUY DIGITAL EQUIPMENT FROM MOTOROLA NORTEL COMMUNICATIONS CO TO INSTALL IN ITS LOS ANGELES NETWORK TERMS WEREN'T DISCLOSED UNDER THE AGREEMENT MOTOROLA NORTEL WILL SUPPLY NETWORK EQUIPMENT THAT USES THE CODE DIVISION MULTIPLE ACCESS TECHNOLOGY FOR THE LOS ANGELES MARKET PACTEL CORP IS EXPECTED TO BEGIN OFFERING DIGITAL SERVICE IN LOS ANGELES EARLY IN 1995 THE AGREEMENT ALSO COVERS DIGITAL EQUIPMENT FOR PACTEL'S NETWORKS IN ATLANTA SAN DIEGO AND SACRAMENTO CALIF MOTOROLA NORTEL IS A JOINT VENTURE OF MOTOROLA INC AND NORTHERN TELECOM INC MOTOROLA NORTEL WILL SUPPLY MOTOROLA'S SC 9600 BASE STATION AND CONTROL PLATFORM AND THE NORTHERN TELECOM DMSMTX SUPERNODE SWITCHINGPLATFORM TO PACIFIC TELESIS PACTEL SAID THAT INSTALLATION OF THE NEW EQUIPMENT WOULD BEGIN LATER THIS YEAR AND EVENTUALLY WOULD EXPAND TO MORE THAN 100 CELLS IN THE LOS ANGELES AREA PACTEL EMBRACED THE CDMA TECHNOLOGY MONTHS AGO EVEN THOUGH MANUFACTURING STANDARDS FOR CDMA HAVEN'T YET BEEN ESTABLISHED AND COMPETITORS HAVE BEGUN INSTALLING SYSTEMS THAT USE THE RIVAL TDMA OR TIME DIVISION MULTIPLE ACCESS TECHNOLOGY IN THEIR LOS ANGELES NETWORKS CDMA DEVELOPED BY QUALCOMM CORP OF SAN DIEGO BREAKS A MESSAGE INTO SMALL BITS LABELS IT WITH A UNIQUE CODE AND SPREADS IT THROUGH 125 MEGAHERTZ OF RADIO SPECTRUM MANY CONVERSATIONS AND DATA MESSAGES ARE TRANSMITTED SIMULTANEOUSLY AND EACH IS REASSEMBLED AT THE RIGHT DESTINATION USING THE UNIQUE CODE TDMA ALSO BREAKS MESSAGES INTO SMALL BITS BUT TRANSMITS THEM IN DIFFERENT TIME SLOTS AND REASSEMBLES THEM AT THEIR DESTINATION WE'RE FOCUSED ON MAKING SURE OUR CUSTOMERS EXPERIENCE A SMOOTH TRANSITION TO THE BEST DIGITAL TECHNOLOGY POSSIBLE NOT TO BEING FIRST TO A MARKET SAID LEE COX CHIEF EXECUTIVE OFFICER OF PACTEL CORP 9305110153 930511 REFORM MAYOR MAY END POLITICAL MACHINE BY JOHN H FUND JERSEY CITY NJ MANY AMERICANS HAVE GIVEN UP HOPE THAT OUR INNER CITIES CAN BE REVIVED BRET SCHUNDLER EMPHATICALLY ISN'T ONE OF THEM HE LEFT A GOOD WALL STREET JOB IN 1990 TO HEAD AN ANTITAX GROUP IN JERSEY CITY A STRUGGLING CITY OF 230000 PEOPLE JUST ACROSS FROM MANHATTAN LAST NOVEMBER HE STUNNED OBSERVERS BY WINNING A SPECIAL ELECTION TO BECOME JERSEY CITY'S FIRST REPUBLICAN MAYOR IN 75 YEARS HE IS RUNNING FOR A FULL TERM IN AN ELECTION TODAY AND THE LOCAL MACHINE HAS BROUGHT IN EVERYONE FROM JESSE JACKSON TO CLINTON CAMPAIGN OPERATIVES TO BEAT HIM THE RACE WILL TEST IF A REFORM MAYOR CAN WIN IN A CITY ABC'S NIGHTLINE PROFILED THIS MONTH AS AN EXAMPLE OF URBAN DESPAIR JERSEY CITY IS HOME OF THE LEGENDARY DEMOCRATIC POLITICAL MACHINE FOUNDED BY FRANK I AM THE LAW HAGUE IN 1917 HAGUE DEFEATED A GOP MAYOR AND BECAME THE CITY'S UNDISPUTED BOSS FOR 32 YEARS AFTER HIS DEATH IN 1949 THE MACHINE SOLDIERED ON EXACTING HIGH TAXES DOLING OUT FAVORS AND PICKING EVERYONE FROM GOVERNORS TO JUDGES BUT IN THE 1990S A RECKONING CAME MAYOR GERALD MCCANN WAS JAILED FOR BANK FRAUD AND THE MACHINE COULDN'T AGREE ON A SUCCESSOR NINETEEN CANDIDATES JUMPED INTO THE 1992 SPECIAL ELECTION THE WINNER WITH ONLY 16 WAS MR SCHUNDLER A 34YEAROLD FORMER INVESTMENT ADVISER AT SALOMON BROTHERS AND CJ LAWRENCE HE CALLED FOR TAX CUTS TO KEEP HOMEOWNERS FROM FLEEING A SHRINKING OF THE CITY'S WORK FORCE AND A SCHOOL VOUCHER PLAN THAT INCLUDES PRIVATE SCHOOLS MR SCHUNDLER INHERITED A CITY WITH A 60 MILLION DEFICIT A DETERIORATING INFRASTRUCTURE AND A WORK FORCE RIDDLED WITH POLITICAL HACKS HIS TOP PRIORITY WAS TO RAISE THE CITY'S 78 PROPERTYTAX COLLECTION RATE CLOSE TO THE 75 LEVEL AT WHICH THE STATE WOULD TAKE OVER THE CITY'S FINANCES OUR TAXES ARE SO HIGH MANY PEOPLE LITERALLY CAN'T PAY THEM HE SAYS THAT MEANS HIGHER TAXES FOR EVERYONE ELSE AND ABANDONED BUILDINGS IF WE CUT TAXES MORE PEOPLE WOULD PAY THEM AND WE'D HAVE A MORE STABLE REVENUE BASE HE DREW UP A PLAN TO ALLOW THE CITY TO BUNDLE TAX LIENS AND SELL THEM TO INSTITUTIONAL INVESTORS ALLOWING IT TO CUT TAX RATES MR SCHUNDLER FOUND THAT 62 OF JERSEY CITY'S POLICE OFFICERS WORKED AT DESKS OR ON SPECIAL UNITS HE DIRECTED THAT 100 OFFICERS START WALKING NEIGHBORHOOD BEATS AND MOVED TO HAVE CIVILIANS REPLACE 60 OTHER DESKBOUND OFFICERS THROUGH ATTRITION HE HAS CUT THE CITY'S WORK FORCE TO 3030 EMPLOYEES FROM 3300 IN FIVE MONTHS MR SCHUNDLER'S MOVES HAVE BEEN MET WITH EITHER SULLEN ACCEPTANCE OR FIERCE OPPOSITION BY THE NINEMEMBER CITY COUNCIL MOSTLY MADE UP OF MACHINE HOLDOVERS THEY CONSIDER HIM A FLUKE MAYOR WHO WILL BE OUSTED BY A NOW UNITED MACHINE THEIR CANDIDATE IS LOUIS MANZO A HUDSON COUNTY FREEHOLDER HIS MAJOR ISSUES ARE THAT MR SCHUNDLER INSISTS ON BEING A REPUBLICAN IN A CITY WHERE THE GOP HAS 6 OF THE REGISTERED VOTERS AND THAT HE ONCE WORKED ON WALL STREET BRET SCHUNDLER CUT HIS TEETH ON WALL STREET A MANZO MAILING LIKE THE ONE IN THE ILLUSTRATION WARNS NOW HE AND HIS SCHOOL OF SHARKS WANT TO TAKE A BITE OUT OF YOU HE WAS PART OF THE 1980S IVAN BOESKY MICHAEL MILKIN SIC GETRICHQUICK CROWD ANY SCHEME FOR A BUCK WELL THAT'S EXACTLY HOW HE'S OPERATING AS MAYOR MR SCHUNDLER WON'T APOLOGIZE FOR HIS BACKGROUND I MADE MY MONEY HONESTLY AND I LEFT THE DEMOCRATS WHEN THEY WOULDN'T FIGHT THE MACHINE IN 1984 HE RAN GARY HART'S NEW JERSEY CAMPAIGN HE WAS DRAWN TO THE GOP AFTER HE TRAVELED THE WORLD AND DECIDED THAT FREE MARKETS COULD ALLEVIATE POVERTY DEVOUTLY RELIGIOUS HE IS A JACK KEMP REPUBLICAN ATTRACTED TO MARKETS BUT CAUTIOUS ABOUT PUSHING HARD FOR THEM WHILE HE PLUMPS FOR SCHOOL CHOICE AND ENTERPRISE ZONES HE IS SOMEWHAT COOL TO PRIVATIZING KEY SERVICES IRONICALLY GIVEN MR SCHUNDLER'S ANTIAPARTHEID ACTIVISM AT HARVARD MR MANZO IS PORTRAYING HIM AS AN APOLOGIST FOR RACISM A NURSERY BUSINESS RUN BY MR SCHUNDLER'S SIBLINGS PROCESSES VERMICULITE A SOUTH AFRICAN MINERAL THAT MAKES MR SCHUNDLER AN ACCOMPLICE OF APARTHEID IN MR MANZO'S EYES EVEN THOUGH THE FEDERAL GOVERNMENT BUYS VERMICULITE FROM THE SCHUNDLER FAMILY BUSINESS THE CHARGES COULD MAKE A DIFFERENCE BECAUSE JERSEY CITY IS 30 BLACK 25 HISPANIC AND 10 ASIAN MR SCHUNDLER HAS GENUINE MINORITY SUPPORT TWO OF HIS CITY COUNCIL RUNNING MATES ARE BLACK AND TWO ARE HISPANIC SO THE MACHINE HAS IMPORTED JESSE JACKSON TO STIR UP PASSIONS AT A FEVERPITCHED RALLY LAST WEEK MR JACKSON LET LOOSE THE VALUES LOU MANZO REPRESENTS ARE THE VALUES OF THE USA THE UNITED STATES OF AMERICA NOT THE VALUES OF THE USA THE UNION OF SOUTH AFRICA MR JACKSON'S SUDDEN PARACHUTE DROP INTO THE RACE TROUBLES MELISSA HOLLOWAY A 31YEAROLD FUNDRAISER AT NEW YORK'S METROPOLITAN OPERA SHE IS ONE OF MR SCHUNDLER'S TWO BLACK RUNNING MATES AND IN 1989 WAS AN ASSISTANT TO MR JACKSON AT HIS NATIONAL RAINBOW COALITION LOCAL PEOPLE SHOULD DECIDE THIS RACE OUTSIDERS SHOULDN'T MAKE ENDORSEMENTS SHE SAYS MS HOLLOWAY SAYS ONE OF MR SCHUNDLER'S MOST POPULAR PROPOSALS IS SCHOOL CHOICE JERSEY CITY'S SCHOOLS ARE A FISCAL AND EDUCATIONAL BLACK HOLE THE CITY SPENDS AN AVERAGE OF 9240 A YEAR ON EACH STUDENT AND YET ONLY 16 OF NINTHGRADE STUDENTS CAN PASS PROFICIENCY TESTS SCHOOL CHOICE IS THE HUMANE SOLUTION SAYS CHARLES ODEI A BLACK REALESTATE AGENT COMPETITION WORKS WITH GROCERY STORES IT WILL WORK WITH SCHOOLS THE RACE BETWEEN MR SCHUNDLER AND MR MANZO IS CLOSE A THIRD CANDIDATE DANIEL WADDLETON COULD FORCE A RUNOFF SHOULD MR SCHUNDLER LOSE IT WILL SIGNAL THAT THE DEATHGRIP OF MUNICIPAL UNIONS AND PATRONAGE MAY BE TOO STRONG TO BREAK IN SOME CITIES HOWEVER IF HE WINS AGAINST ALL PARTISAN ODDS IT WILL MEAN THAT REFORM IS AT LEAST POSSIBLE ANYWHERE FORGOTTEN JERSEY CITY COULD EVEN BECOME A MODEL FOR URBAN REFORM FOR THE REST OF THE COUNTRY MR FUND IS A WRITER ON THE JOURNAL'S EDITORIAL PAGE 9305110152 930511 US RAWSTEEL OUTPUT FELL 11 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY US MILLS DECREASED 11 LAST WEEK TO 1805000 TONS FROM 1824000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT FELL 017 FROM THE 1808000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 853 OF ITS CAPABILITY LAST WEEK COMPARED WITH 862 THE PREVIOUS WEEK AND 839 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9305110151 930511 ENVIRONMENT BY DAVID STIPP AMERICANS MAY BE ABLE TO GET MORE ENERGY DIGGING IN BACKYARDS THAN IN ALASKA'S ARCTIC NATIONAL WILDLIFE REFUGE FOR OIL THAT'S BECAUSE OF GEOTHERMAL HEAT PUMPS PIPES BURIED UNDERGROUND THAT HEAT AND COOL BUILDINGS DEMAND FOR THE SYSTEMS IS TAKING OFF AS ELECTRIC UTILITIES AND GOVERNMENT AGENCIES PROMOTE THEM TO FOSTER ENERGY EFFICIENCY AND CUT POLLUTION SELLERS OF THE SYSTEMS SAY SALES ARE RISING 20 A YEAR AND COULD JUMP TO 2 BILLION OR MORE ANNUALLY BY 2000 FROM ABOUT 250 MILLION NOW A POPULAR VERSION PUMPS AN ANTIFREEZELIKE FLUID THROUGH LEAKRESISTANT PLASTIC TUBES BURIED SIX FEET OR SO DOWN WHERE THE TEMPERATURE VARIES LITTLE IN SUMMER A HEAT EXCHANGER IN THE HOME TRANSFERS HEAT TO THE FLUID WHICH RELEASES IT INTO THE RELATIVELY COOL GROUND IN WINTER THE SYSTEM DRAWS HEAT FROM THE RELATIVELY WARM EARTH THE TECHNOLOGY AVAILABLE FOR MORE THAN A DECADE HAS GRADUALLY BECOME MORE COSTEFFECTIVE DANIEL ELLIS PRESIDENT OF WFI INDUSTRIES' WATERFURNACE INTERNATIONAL UNIT SAYS THE EFFICIENCY OF THE COMPANY'S SYSTEMS HAS IMPROVED 30 SINCE 1990 MEANWHILE COSTS HAVE DROPPED AS CONTRACTORS HAVE SWITCHED FROM DEEP PIPES TO SHALLOWER EASILY INSTALLED ONES SAYS NEIL WALKER A SPOKESMAN FOR THE EDISON ELECTRIC INSTITUTE A UTILITY TRADE GROUP SYSTEMS FOR RESIDENTIAL USE TYPICALLY COST ABOUT 8000 A HEFTY 3000 MORE THAN CONVENTIONAL FURNACE AND CENTRAL AIRCONDITIONING SYSTEMS BUT ENERGY SAVINGS FROM THE SYSTEMS WHICH CAN PROVIDE ALMOST ALL HOME HEATING AND COOLING CAN REPAY THE EXTRA COST WITHIN SEVERAL YEARS MANY UTILITIES SUBSIDIZE CUSTOMERS' INSTALLATION OF THE SYSTEMS WHICH CUT PEAK DEMAND FOR ELECTRICITY AND LESSEN THE NEED FOR NEW POWER PLANTS THE SYSTEMS ARE POPULAR WITH RURAL CUSTOMERS FAR FROM GAS LINES SAYS STEPHEN TRELEASE A SPOKESMAN FOR AMERICAN STANDARD'S TRANE UNIT A MAKER OF THE SYSTEMS AN ANNUAL ROAD RALLY FOR ELECTRIC VEHICLES WILL INCLUDE A RACE FOR PUBLICLY SOLD MODELS FOR THE FIRST TIME THIS YEAR THE AMERICAN TOUR DE SOL'S ADDITION OF THE EVENT IS A MILESTONE FOR THE FLEDGLING ELECTRIC VEHICLE INDUSTRY THE RACE SCHEDULED FOR LATE MAY TRADITIONALLY FEATURES EXPERIMENTAL ELECTRIC AND SOLARPOWERED VEHICLES NOW ENOUGH PRODUCTION MODELS ARE AVAILABLE TO WARRANT THEIR OWN CATEGORY SAYS THE NORTHEAST SUSTAINABLE ENERGY ASSOCIATION GREENFIELD MASS WHICH ORGANIZES THE EVENT SUCH VEHICLES MADE MAINLY BY SMALL COMPANIES IN LIMITED NUMBERS ARE STILL TOO COSTLY FOR MOST CONSUMERS BUT THAT'S BEGINNING TO CHANGE PARTLY AS A RESULT OF ANTIPOLLUTION LAWS IN CALIFORNIA AND OTHER STATES THAT REQUIRE A PERCENTAGE OF NEW CARS SOLD AFTER 1997 TO BE EMISSIONFREE IN EFFECT ELECTRIC AT LEAST FOUR VEHICLES ARE EXPECTED TO COMPETE IN THE RACE BETWEEN BOSTON AND BURLINGTON VT THE VEHICLES WILL COMPLETE THE ROUTE OVER SEVERAL DAYS PARTICIPATING IN ROADSIDE DISPLAYS AND RECHARGING BATTERIES AT NIGHT THE FORCE A GEO METRO CONVERTED BY SOLECTRIA CORP ARLINGTON MASS IS FAVORED TO WIN SOLECTRIA SAYS ITS 59000 MODEL POWERED BY NICKELCADMIUM BATTERIES CAN GO MORE THAN A HUNDRED MILES BETWEEN CHARGINGS AND ZIP ALONG AT 80 MILES AN HOUR THE COMPETITION IS EXPECTED TO INCLUDE ENTRIES BY SOLAR CAR MELBOURNE FLA CONSULIER AUTOMOTIVE RIVIERA BEACH FLA AND A GROUP OF PENNSYLVANIA UTILITIES WHICH ARE ENTERING CHRYSLER'S NEW 120000 ELECTRIC MINIVAN RISING CARBON DIOXIDE IS LIKELY TO CAUSE MAJOR ECOLOGICAL CHANGE REGARDLESS OF WHETHER THE GLOBE HEATS UP STUDIES SUGGEST ATMOSPHERIC CARBON DIOXIDE IS EXPECTED TO DOUBLE BY ABOUT 2050 FROM PREINDUSTRIAL LEVELS LARGELY AS A RESULT OF THE BURNING OF FOSSIL FUELS IT'S DEBATABLE WHETHER THAT WILL CAUSE DISASTROUS WARMING BUT THE RISE IS WELL ESTABLISHED AND SINCE CARBON DIOXIDE IS A CRUCIAL PLANT NUTRIENT PLANTS ARE LIKELY TO UNDERGO CHANGES EVEN IF TEMPERATURES DON'T RISE MORE CARBON DIOXIDE ALREADY APPEARS TO HAVE BOOSTED CROP YIELDS SAYS DUKE UNIVERSITY BOTANIST BOYD STRAIN WHO COMPARES THE CHANGE TO FERTILIZING THE ATMOSPHERE OF THE ENTIRE WORLD BUT STUDIES INDICATE SOME CROPS INCLUDING CORN AND SUGAR CANE ARE NOW ABSORBING AS MUCH CARBON DIOXIDE AS THEY CAN HENCE THEIR YIELDS WON'T RISE FURTHER BY CONTRAST WEEDS SUCH AS KUDZU MAY SPREAD FASTER WEEDS TEND TO BENEFIT IN DISTURBED ENVIRONMENTS BECAUSE THEY REPRODUCE FAST AND HAVE FEW NATURAL ENEMIES SAYS PETER CURTIS AN OHIO STATE UNIVERSITY BIOLOGIST IN A RECENT STUDY OF TREES DR CURTIS AND A COLLEAGUE FOUND THAT YOUNG ASPENS EXPOSED TO HIGH LEVELS OF CARBON DIOXIDE GREW FASTER BUT THE TREES DIDN'T HARDEN BY ABSORBING NUTRIENTS FROM LEAVES AS WINTER APPROACHED POTENTIALLY LEADING TO FROST DAMAGE SO IT'S HARD TO SAY WHAT THE NET EFFECT WOULD BE HE SAYS TO HELP FIND OUT DR STRAIN IS LEADING A STUDY IN WHICH A FORESTED AREA NEAR DUKE WILL BE EXPOSED TO HIGH NEARLY CONSTANT LEVELS OF CARBON DIOXIDE SPEWED BY AN AUTOMATED SYSTEM THE PROJECT SHOULD SHOW HOW AN ENTIRE ECOSYSTEM REACTS HAMMERMILL PAPERS SAYS IT INTRODUCED THE FIRST OFFICE PAPER MADE ENTIRELY OF RECYCLED NEWSPAPERS AND MAGAZINES THE INTERNATIONAL PAPER UNIT IS INVESTING 100 MILLION IN A PENNSYLVANIA PLANT TO MAKE ITS UNITY DP PAPER WHICH COSTS ABOUT THE SAME AS NONRECYCLED ALTERNATIVES THE PLANT WILL BE ABLE TO HANDLE 10 OF THE STATE'S DISCARDED NEWSPAPERS AND MAGAZINES A SPOKESMAN SAYS BUT THE OFFWHITE PAPER WON'T ITSELF BE RECYCLABLE IN OFFICE PROGRAMS FOR PURE WHITE PAPER INTERGRAPH IS DEVELOPING A COMPUTERIZED INVENTORY OF 500000 SPECIES IN COSTA RICA WITH THE NATIONAL BIODIVERSITY INSTITUTE OF COSTA RICA THE BIODIVERSITY INFORMATION MANAGEMENT SYSTEM WILL HELP CONSERVATION GROUPS MARSHAL DATA TO SUPPORT PRESERVATION PROJECTS THE COMPUTER MAKER SAYS 9305110150 930511 WORLD MARKETS TOKYO STOCKS CLIMB 12 TO A 14MONTH HIGH LONDON SHARES POST A SURPRISING 13 ADVANCE A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS ADVANCED 12 MONDAY ON A LATE ROUND OF INDEXLINKED ARBITRAGE BUYING AND THE NIKKEI INDEX CLOSED ABOVE 21000 FOR THE FIRST TIME IN 14 MONTHS LONDON EQUITIES SURGED 13 AND THE EXCHANGE'S MAIN BAROMETER CLOCKED ITS BIGGEST ONEDAY POINT GAIN IN TWO MONTHS BUT FRANKFURT SHARES AFTER A SHARP SELLOFF AT THE OPENING FINISHED WEAKER THOUGH WELL ABOVE THE DAY'S LOWS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10537 DOWN 044 REFLECTING DROPS IN MARKETS IN EUROPE AND THE ASIA/PACIFIC REGION AND A RISE IN THE AMERICAS FOOTWARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10997 UP 238 OR 22 WITH LA GEAR OF THE US POSTING A 46 GAIN IN ITS LOCAL CURRENCY INSURANCEFULL LINE STOCKS TRAILED AT 10473 DOWN 207 OR 19 WITH GROUPE VICTOIRE OF FRANCE SLIDING 84 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 18933 POINTS FRIDAY GAINED 24335 TO 2105471 ITS FIRST FINISH ABOVE 21000 SINCE MARCH 4 1992 WHEN THE INDEX ENDED AT 2110542 ON TUESDAY THE NIKKEI INDEX ADDED 4096 POINTS TO CLOSE THE MORNING SESSION AT 2109567 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 500 MILLION SHARES DOWN FROM 5876 MILLION SHARES IN THE PREVIOUS SESSION GAINERS SWAMPED LOSERS 839228 PROFITTAKING ON LONG FUTURES POSITIONS PRESSURED THE STOCK MARKET LOWER FOR MOST OF THE DAY AS CORPORATE EARNINGS WEAKNESS MADE SOME INVESTORS CAUTIOUS TOWARD THE END OF THE SESSION INVESTMENT TRUSTS DEALERS AND OTHERS SNAPPED UP FUTURES SETTING OFF THE LASTMINUTE JUMP IN STOCK PRICES SOME EXPORTORIENTED SHARES WERE SOLD BUT DOMESTICDEMAND ISSUES SUCH AS DRUG MAKERS AS WELL AS SMALLCAPITALIZATION STOCKS IN THE MARKET'S SECOND SECTION WERE SNAPPED UP THE STRONG SHOWING BY THE NIKKEI WHICH FINISHED NEAR ITS MONDAY TRADING HIGH OF 2106264 SURPRISED MANY INVESTORS WHO HAD EXPECTED THE INDEX TO LINGER BETWEEN 20500 AND 21000 THIS WEEK FOLLOWING THE MARKET'S STRONG GAINS IN THE PAST FEW WEEKS WITH A WAVE OF JAPANESE COMPANIES' EARNINGS REPORTS COMING THIS WEEK THE POSSIBILITY OF EXTREMELY WEAK PROFIT FORECASTS FOR THE CURRENT FISCAL YEAR COULD CURB ENTHUSIASM FOR BUYING STOCKS THOUGH INSTITUTIONAL INVESTORS WERE POISED FOR OPPORTUNITIES TO BUY AT LOWER LEVELS FROM A CORRECTION JAPANESE INSTITUTIONS WHICH HAVE BEEN ON THE SIDELINES RECENTLY WERE INCREASINGLY RETURNING TO THE MARKET IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX RALLIED 361 POINTS TO 28298 THE FT 30STOCK INDEX ADVANCED 285 POINTS ALSO 13 TO 22180 VOLUME WAS A MODERATELY ACTIVE 5875 MILLION SHARES COMPARED WITH 6128 MILLION SHARES IN THE PREVIOUS SESSION THE LONDON MARKET'S STRENGTH SURPRISED MANY ANALYSTS WHO HAD FORECAST GLOOM SINCE THE 100SHARE INDEX FELL BELOW A PERCEIVED SUPPORT LEVEL OF 2800 IN THE PAST TWO WEEKS THE IMPETUS YESTERDAY CAME FROM THE START OF A NEW TRADING ACCOUNT WHICH TYPICALLY FANS OPTIMISM ABOUT BUYING IN THE ACCOUNT PERIOD THAT ENDED FRIDAY THE MAIN INDEX LOST ALMOST 31 POINTS AND YESTERDAY'S RALLY GAINED STEAM FROM LOWERTHANEXPECTED BRITISH INFLATION DATA FOR APRIL AND A STRONG OPENING ON WALL STREET STRENGTH IN THE INTERESTRATE FUTURES MARKET ALSO HELPED LONDON STOCK PRICES ADVANCE INVESTORS SPECULATED THAT BRITISH INTEREST RATES WILL BE LOWERED IN FRANKFURT THE DAX 30STOCK INDEX DECLINED 289 POINTS TO 160903 AFTER REBOUNDING FROM THE INTRADAY LOW OF 160073 THE INDEX NUDGED THE PERCEIVED SUPPORT LEVEL OF 1600 AFTER FALLING FROM 1695 IN MIDAPRIL AND WITH BUYERS SCARCE FURTHER LOSSES ARE EXPECTED THE BANKING SECTOR LED THE DECLINES YESTERDAY ON WEAKNESS IN FIRSTQUARTER FINANCIAL RESULTS AND RELATED PROBLEMS PARIS SHARE PRICES AFTER SAGGING BUT REGAINING GROUND FROM BARGAINHUNTING CLOSED MIXED BUYERS AVOIDED THE MARKET UNTIL THEY SAW DETAILS OF THE FRENCH GOVERNMENT'S PLANS TO TRIM THE BALLOONING BUDGET DEFICIT AND STIMULATE THE FLAGGING ECONOMY THESE PROGRAMS WERE UNVEILED AFTER PARIS TRADING ENDED IN AMSTERDAM STOCKS ROSE SUPPORTED BY A FIRMER DOLLAR AND THE BRIGHT OPENING ON WALL STREET MILAN SHARES FELL BUFFETED BY SELLING AHEAD OF THIS WEEK'S TECHNICAL DEADLINES INCLUDING THOSE FOR OPTIONS CONTRACTS AND FOR THE END OF THE MAY TRADING ACCOUNT STOCKHOLM PRICES ROSE SLIGHTLY IN HEAVY TRADING AFTER AN AGREEMENT BETWEEN INDUSTRIAL EMPLOYERS AND UNIONS ON A NEW TWOYEAR CONTRACT FOR 500000 WORKERS LIFTED THE MARKET IN EARLY TRADING BUT PROFITTAKING IN THE AFTERNOON SENT PRICES BACK DOWN ZURICH STOCKS CLIMBED SUPPORTED BY A STRONGER DOLLAR WHICH ENCOURAGED BUYING IN MULTINATIONALS WHILE BANKING ISSUES GAINED ON HOPES FOR FURTHER DECLINES IN SWISS AND EUROPEAN INTEREST RATES STOCKS FELL IN SYDNEY AND HONG KONG AS BOTH BOURSES WERE WEIGHED DOWN BY DISAPPOINTING CORPORATE NEWS ENDING A THREESESSION LOSING STREAK SEOUL SHARES FINISHED MARGINALLY HIGHER FAILING TO GET A BOOST FROM THE SOUTH KOREAN GOVERNMENT'S UNVEILING OF REFORM MEASURES FOR THE COUNTRY'S FINANCIAL SYSTEM MOST FINANCIAL ISSUES INCLUDING INSURERS FINANCE COMPANIES AND BANKS WERE LITTLE CHANGED MANILA SHARES FELL BROADLY WITH THE MINING SECTOR THE LONE GAINER FOR THE DAY WELLINGTON STOCKS FELL SHARPLY AS RECENT DROPS IN LUMBER PRICES HAVE LED TO DOWNGRADINGS FOR FORESTRY ISSUES AMONG CORPORATE DEVELOPMENTS IN FRANKFURT THYSSEN ROSE 120 MARKS TO 16880 MARKS 10668 AND KLOECKNERWERKE LOST 350 OR 63 TO 52 THYSSEN A STEELMAKER CONFIRMED THAT IT IS PART OF A CONSORTIUM INCLUDING FRIED KRUPP AG HOESCHKRUPP THAT IS INTERESTED IN NEGOTIATING A TAKEOVER OF THE STEEL ACTIVITIES OF FINANCIALLY AILING KLOECKNER THYSSEN DENIED A REPORT IN THE GERMAN NEWS MAGAZINE DER SPIEGEL THAT AN AGREEMENT HAD BEEN REACHED KLOECKNER SHAREHOLDERS ARE VOTE NEXT MONTH ON A RESTRUCTURING PLAN IN PARIS RHONEPOULENC DECLINED 2 FRENCH FRANCS TO 539 FRANCS 10109 THE CHEMICAL AND DRUG COMPANY SAID THAT IT WAS CONSIDERING SELLING ALL OR PART OF ITS 35 STAKE IN ROUSSELUCLAF ON THE OPEN MARKET AND THAT IT WAS DISCUSSING THE MATTER WITH HOECHST A GERMAN CHEMICAL COMPANY WHICH OWNS 544 OF ROUSSELUCLAF HOECHST LAST YEAR SAID IT WANTED TO HAVE DOUBLED TO AT LEAST 20 THE ROUSSELUCLAF SHARES IN PUBLIC HANDS THE TWO MAJOR SHAREHOLDERS ARE LINKED THROUGH AN AGREEMENT THAT EXPIRES IN JUNE IN FRANKFURT HOECHST SHARES FELL 2 MARKS TO 23450 MARKS 15552 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 9305110149 930511 WHO'S NEWS RYDER SYSTEM INC RYDER SYSTEM INC MIAMI DAVID KEARNS 62YEAROLD FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF XEROX CORP WAS ELECTED A DIRECTOR OF THIS TRANSPORTATION SERVICES CONCERN FILLING A VACANCY 9305110148 930511 WHO'S NEWS ACME ELECTRIC CORP ACME ELECTRIC CORP EAST AURORA NY ROBERT J MCKENNA THE COMPANY'S 44YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS ELECTED TO THE BOARD OF THE MAKER OF POWERCONVERSION PRODUCTS EXPANDING IT TO SIX MEMBERS 9305110147 930511 DAHRENDORF RESIGNS AS CHAIRMAN OF UK'S NEWSPAPER PUBLISHING SPECIAL TO THE WALL STREET JOURNAL LONDON SIR RALF DAHRENDORF RESIGNED AS CHAIRMAN OF NEWSPAPER PUBLISHING PLC PUBLISHER OF THE UK'S INDEPENDENT AND INDEPENDENT ON SUNDAY NEWSPAPERS THE ANNOUNCEMENT WAS MADE IN A SHORT STATEMENT CARRIED IN THE INDEPENDENT NO REASON WAS GIVEN BUT SIR RALF'S SUDDEN DEPARTURE FOLLOWS THE COMPANY'S FAILED BID TO BUY AND CLOSE BRITAIN'S OBSERVER NEWSPAPER THE WORLD'S OLDEST SUNDAY NEWSPAPER FROM LONRHO PLC LONRHO HAS SINCE SAID IT HAS RECEIVED AN ACCEPTABLE OFFER FOR THE OBSERVER FROM THE UK'S GUARDIAN NEWSPAPER WHICH PLANS TO KEEP THE PAPER OPEN THE INDEPENDENT SAID A NEW CHAIRMAN WILL BE ANNOUNCED SHORTLY ANDREAS WHITTAM SMITH REMAINS CHIEF EXECUTIVE OF NEWSPAPER PUBLISHING 9305110146 930511 WHO'S NEWS CAPITAL CITIES/ABC INC CAPITAL CITIES/ABC INC NEW YORK WILLIAM ABRAMS 40 YEARS OLD WAS NAMED VICE PRESIDENT FOR BUSINESS DEVELOPMENT AND MARKETING AT ABC NEWS A NEW POST HE WILL COORDINATE THE SALE AND DISTRIBUTION OF ABC NEWS PROGRAMMING AND MANAGE ABC NEWS JOINT BUSINESS VENTURES DOMESTICALLY AND INTERNATIONALLY PREVIOUSLY MR ABRAMS HELD THE POSITION OF VICE PRESIDENT MARKETING AND DEVELOPMENT FOR ABC DAYTIME PROGRAMS WHERE HE WAS THE COFOUNDER AND EXECUTIVE DIRECTOR OF EPISODES A MAGAZINE ABOUT ABC'S DAYTIME SERIALS PRIOR TO JOINING ABC IN 1986 MR ABRAMS SPENT EIGHT YEARS AS A STAFF REPORTER AT THE WALL STREET JOURNAL 9305110145 930511 WHO'S NEWS UNISYS CORP UNISYS CORP BLUE BELL PA F RON JENKINS 48 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT WORLDWIDE SYSTEMS INTEGRATION HE WILL CONTINUE AS VICE PRESIDENT SYSTEMS INTEGRATION OPERATIONS FOR THE US INFORMATIONSYSTEMS MARKETING DIVISION OF THE INFORMATION SERVICES COMPANY 9305110144 930511 WHO'S NEWS INTERLAKE CORP INTERLAKE CORP LISLE ILL JOHN A CANNING JR 48 YEARS OLD PRESIDENT OF MADISON DEARBORN PARTNERS INC A CHICAGO VENTURE CAPITAL FIRM WAS NAMED A DIRECTOR OF THE MAKER OF AUTOMOTIVE AEROSPACE MATERIALSHANDLING AND PACKAGING PRODUCTS HE SUCCEEDS EDWARD J WILLIAMS WHO RETIRED INTERLAKE ALSO ELECTED JOHN P MILLER 35 AS CONTROLLER MR MILLER WHO HAD BEEN VICE PRESIDENT FINANCE OF INTERLAKE'S MATERIAL HANDLING DIVISION SUCCEEDS RICHARD POLANEK WHO RETIRED EARLIER THIS YEAR AS VICE PRESIDENT FINANCE CHIEF FINANCIAL OFFICER AND CONTROLLER 9305110143 930511 WHO'S NEWS SMITH BARNEY NAMES JACK RIVKIN DIRECTOR OF GLOBAL RESEARCH NEW YORK JACK L RIVKIN WAS NAMED DIRECTOR OF GLOBAL RESEARCH FOR SMITH BARNEY HARRIS UPHAM & CO THE SECURITIES SUBSIDIARY OF PRIMERICA CORP THE POST IS NEWLY CREATED MR RIVKIN 50 YEARS OLD WAS DIRECTOR OF RESEARCH AND HEAD OF THE EQUITY DIVISION AT SHEARSON LEHMAN BROTHERS INC UNTIL HIS RESIGNATION LAST YEAR HE WILL REPORT TO FRANK G ZARB CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SMITH BARNEY IN HIS NEW POST MR RIVKIN WILL OVERSEE THE EXPANSION OF THE INVESTMENT BANK'S RESEARCH ESPECIALLY IN THE INTERNATIONAL AREA HE ALSO WILL OVERSEE THE WORK OF JOHN B HOFFMANN THE FIRM'S DIRECTOR OF US RESEARCH MR HOFFMANN WILL CONTINUE TO HAVE RESPONSIBILITY FOR ALL DOMESTIC RESEARCH A PROFESSIONAL STAFF OF 60 AND THE TECHNICAL ECONOMIC AND CREDIT MARKET RESEARCH GROUPS MR RIVKIN A GRADUATE OF THE COLORADO SCHOOL OF MINES AND THE HARVARD BUSINESS SCHOOL JOINED SHEARSON LEHMAN BROTHERS IN 1987 AS DIRECTOR OF RESEARCH HE WAS NAMED CODIRECTOR OF THE EQUITY DIVISION OF LEHMAN BROTHERS IN 1990 THEN DIRECTOR IN 1991 MR RIVKIN BECOMES THE LATEST FORMER SHEARSON LEHMAN BROTHERS EXECUTIVE TO JOIN SMITH BARNEY WHICH AGREED IN MARCH TO PURCHASE THE BROKERAGE AND ASSET MANAGEMENT OPERATIONS OF THE AMERICAN EXPRESS CO UNIT FOR ABOUT 115 BILLION SMITH BARNEY SAID THE APPOINTMENT OF MR RIVKIN ANTICIPATES THE PROPOSED MERGER OF THE FIRM WITH THE SHEARSON UNITS IN EARLY JULY MR RIVKIN SAID THE PRIMARY TASKS IN HIS NEW ROLE WILL BE EXPANDING SMITH BARNEY'S EMERGING MARKETS EFFORTS IN ASIA WITH A HEIGHTENED INTEREST IN SOUTHEAST ASIA AND LATIN AMERICA AS WELL AS DEVELOPING MORE OF A PRESENCE IN WESTERN EUROPE OUR MAJOR WEAKNESS IS IN THE EUROPEAN SPHERE MR RIVKIN SAID THAT'S AN AREA WE'LL HAVE TO TAKE A REAL LOOK AT AND SEE WHAT WE WANT TO DO 9305110142 930511 WHO'S NEWS TIME WARNER INC TIME WARNER INC NEW YORK ERIC FRANKEL 34 YEARS OLD VICE PRESIDENT OF MARKETING FOR WARNER BROS PAYTV CABLE AND NETWORK FEATURES WAS NAMED A SENIOR VICE PRESIDENT FOR THE UNIT OF THIS MEDIA AND ENTERTAINMENT COMPANY 9305110141 930511 WHO'S NEWS RUBBERMAID INC RUBBERMAID INC WOOSTER OHIO AJA BUD BROWN 50 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF INTERNATIONAL BUSINESS DEVELOPMENT SUCCEEDING RON BEST WHO HAD BEEN SENIOR VICE PRESIDENT OF BUSINESS AND INTERNATIONAL DEVELOPMENT MR BEST LEFT RUBBERMAID IN DECEMBER 1991 TO BECOME PRESIDENT OF PRIVATELY HELD TOTES INC CINCINNATI MR BROWN PREVIOUSLY WAS PRESIDENT OF THE INTERNATIONAL DIVISION OF L & F PRODUCTS A UNIT OF EASTMAN KODAK CO RUBBERMAID IS A MAKER AND MARKETER OF PLASTIC AND RUBBER PRODUCTS SUCH AS KITCHEN WARE LAUNDRY AND BATH ACCESSORIES AND OFFICE PRODUCTS 9305110140 930511 WHO'S NEWS CONTINENTAL AIRLINES CONTINENTAL AIRLINES HOUSTON DANIEL P GARTON 35 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR GARTON HAD BEEN VICE PRESIDENT OF FINANCIAL PLANNING AND ANALYSIS FOR AMERICAN AIRLINES AN AMR CORP UNIT HE SUCCEEDS JOHN LUTH 40 WHO WAS PROMOTED TO THE POST OF SENIOR VICE PRESIDENT OF RESTRUCTURING A NEW POSITION AT CONTINENTAL 9305110139 930511 MARKETING & MEDIA NBC NEWS NAMES ABC NEWS' GRALNICK EXECUTIVE PRODUCER NEW YORK NBC NEWS TURNED TO ABC NEWS PRODUCER JEFF GRALNICK TO FILL THE VACANT POST OF EXECUTIVE PRODUCER OF NBC NIGHTLY NEWS WITH TOM BROKAW SINCE 1985 MR GRALNICK 54 YEARS OLD HAS BEEN VICE PRESIDENT AND EXECUTIVE PRODUCER OF SPECIAL BROADCASTS FOR ABC NEWS WHICH INCLUDED OVERSEEING ELECTION AND PERSIAN GULF WAR COVERAGE FOR THE CAPITAL CITIES/ABC INC UNIT PREVIOUSLY MR GRALNICK A 21YEAR ABC NEWS VETERAN WAS EXECUTIVE PRODUCER OF ABC'S WORLD NEWS TONIGHT UNDER HIS LEADERSHIP FROM 1979 TO 1983 THE PROGRAM WON THE THREENETWORK RATINGS RACE FOR THE FIRST TIME MR GRALNICK SAID HE TOOK THE JOB AT NBC A UNIT OF GENERAL ELECTRIC CO BECAUSE I RAN OUT OF MOUNTAINS TO CLIMB AT ABC HE SAID HE DOESN'T EXPECT TO MAKE MAJOR CHANGES IN NBC'S NIGHTLY NEWSCAST WHICH RANKS THIRD IN THE RATINGS THERE'S NOTHING WRONG WITH THAT BROADCAST IT'S ONLY ONE NIELSEN HOUSEHOLD AND A HALF OUT OF SECOND PLACE HE SAID REFERRING TO THE RATINGS SERVICE AC NIELSEN CO 9305110138 930511 SUPERMARKET STRIKE AT FOUR CHAINS SPREADS TO 28 SITES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL A SUPERMARKET STRIKE IN NORTHERN NEW JERSEY SPREAD TO 28 STORES WITH MANAGEMENT AND THE UNION EACH RAISING THE ANTE THROUGH PICKETS AND LOCKOUTS LOCAL 1262 OF THE UNITED FOOD & COMMERCIAL WORKERS WHICH REPRESENTS MORE THAN 26000 WORKERS AT 312 SUPERMARKETS IN NEW JERSEY AND NEW YORK INTENDED A LIMITED STRIKE AT 12 STORES AS A WARNING SHOT AIMED AT MANAGEMENT BUT THE OWNERS OF THE FOUR SUPERMARKET COMPANIES INVOLVED IN THE TALKS DIDN'T FLINCH AND INSTEAD RETALIATED BY LOCKING OUT WORKERS AT 16 ADDITIONAL STORES A SPOKESMAN FOR MANAGEMENT SAID ALL 28 STORES CONTINUED TO OPERATE WITH TEMPORARY REPLACEMENT WORKERS AND MANAGERS HEALTHCARE ISSUES DOMINATED THE CONTRACT NEGOTIATIONS FOR MEAT CUTTERS CLERKS AND OTHER GROCERY WORKERS WHO WORK AT SHOPRITE PATHMARK FOODTOWN AND GRAND UNION STORES LOCAL 1262 WHICH HADN'T GONE ON STRIKE SINCE 1982 SAID MANAGEMENT ASKED WORKERS TO PAY TOO MUCH FOR HEALTH CARE AND THE COMPANY OFFERED TOO LITTLE IN TERMS OF RELATED BENEFITS A SPOKESMAN FOR THE OWNERS WOULD NOT COMMENT ON THE STICKING POINTS OF THE NEGOTIATIONS BUT HE EXPRESSED DISPLEASURE WITH THE TURN THE TALKS HAD TAKEN THE NEGOTIATIONS WERE CHARACTERIZED BY A LACK OF COMMUNICATION ON THE PART OF THE UNION STONEWALLING BY THE UNION AND GENERAL FRUSTRATION BY MANAGEMENT TO GET ANY OF OUR POINTS ACCOMPLISHED SAID A SPOKESMAN FOR THE OWNERS MANAGEMENT KEPT COMING TO US WITH THE SAME PROPOSAL AND IT WASN'T GOOD ENOUGH FOR OUR MEMBERSHIP SAID A LOCAL 1262 SPOKESMAN AND AS OF NOW WE DON'T HAVE ANY NEW TALKS SCHEDULED THE KEY ISSUE FOR US REMAINS WINNING DECENT HEALTHCARE AND WELFARE BENEFITS FOR OUR WORKERS NEITHER SIDE OFFERED MUCH HOPE THAT TALKS WOULD RESUME SOON AND THE UNION SPOKESMAN SAID HE WAS UNCERTAIN IF THE STRIKE MIGHT SPREAD THE SPOKESMAN FOR THE OWNERS SAID THEY WOULD RESPOND TO ADDITIONAL WALKOUTS THE SAME WAY THEY RESPONDED TO THE INITIAL STRIKE BY LOCKING OUT EMPLOYEES AT MORE OF THEIR STORES SHOPRITE A UNIT OF PRIVATELY HELD BIG V SUPERMARKETS INC FOODTOWN A UNIT OF MAYFAIR SUPERMARKETS INC GRAND UNION A UNIT OF PRIVATELY HELD GRAND UNION HOLDINGS CORP AND PATHMARK A UNIT OF SUPERMARKETS GENERAL HOLDINGS CORP ARE COLLECTIVELY NEGOTIATING WITH LOCAL 1262 FOR A NEW CONTRACT THE MOST RECENT AGREEMENT EXPIRED APRIL 10 9305110137 930511 WHO'S NEWS WALT DISNEY CO WALT DISNEY CO BURBANK CALIF MITCH SCHULTZ 37YEAROLD DIRECTOR OF CORPORATE COMPENSATION WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT CORPORATE COMPENSATION AND ORGANIZATIONAL DEVELOPMENT DISNEY IS INVOLVED IN MOVIE AND TELEVISION PROGRAMMING THEME PARKS AND CHARACTER MERCHANDISING 9305110136 930511 WHO'S NEWS OCCIDENTAL PETROLEUM CORP OCCIDENTAL PETROLEUM CORP LOS ANGELES DONALD P DEBRIER WAS ELECTED EXECUTIVE VICE PRESIDENT GENERAL COUNSEL AND SECRETARY OF THIS COMPANY WHICH HAS INTERESTS IN NATURAL RESOURCES CHEMICALS AND FOOD PROCESSING MR DEBRIER 53 YEARS OLD WAS GENERAL COUNSEL OF BP EXPLORATION CO HE SUCCEEDS GERALD STERN 56 WHO RETIRED 9305110135 930511 LACLEDE POSTPONES MEETING ST LOUIS MO LACLEDE STEEL CO SAID PLANS BY A HOLDER TO SELL ITS 498 STAKE IN THE STEELMAKER CAUSED POSTPONEMENT OF LACLEDE'S ANNUAL MEETING FROM MAY 26 TO A YET TO BE DETERMINED DATE MONTREALBASED IVACO INC ANNOUNCED IN JANUARY PLANS TO SELL CITING ITS OWN DESIRE TO REDUCE DEBT AND STRENGTHEN ITS FINANCIAL POSITION LACLEDE SAID IT DECIDED ON THE POSTPONEMENT IN VIEW OF THE CHANGE TO OUR STOCKHOLDER BASE THAT WOULD RESULT FROM IVACO'S ACTION AN IVACO SPOKESMAN DECLINED TO ESTIMATE WHEN THE STAKE MIGHT BE SOLD THERE'S NO TARGET DATE FOR A SALE AND NOTHING TO UPDATE HE SAID 9305110134 930511 NORTHWEST AIRLINES TRAFFIC ROSE MINNEAPOLIS NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC SAID APRIL TRAFFIC ROSE 11 TO 464 BILLION REVENUE PASSSENGER MILES FROM 418 BILLION MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE CARRIER'S LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 653 FROM 588 FOR THE CALENDAR YEAR TO DATE NORTHWEST SAID ITS TRAFFIC INCREASED 71 TO 1828 BILLION REVENUE PASSENGER MILES FROM 1707 BILLION MILES IN THE YEARAGO PERIOD LOAD FACTOR CLIMBED TO 641 FROM 601 9305110133 930511 MORE PEOPLE IN SURVEY SAY HOME OWNERSHIP IS POSSIBLE FOR YOUNG WASHINGTON LOW MORTGAGE RATES HAVE TRIGGERED A SHARP INCREASE IN THE BELIEF THAT HOME OWNERSHIP IS CURRENTLY WITHIN THE ECONOMIC GRASP OF YOUNG PEOPLE ACCORDING TO A FEDERAL NATIONAL MORTGAGE ASSOCIATION SURVEY IN ITS SECOND NATIONAL HOUSING SURVEY FANNIE MAE REPORTED THAT 74 OF THOSE POLLED SAID HOME OWNERSHIP IS SOMETHING WITHIN REACH FOR MOST YOUNG PEOPLE BETWEEN THE AGES OF 3035 UP FROM 47 LAST YEAR THIS IS ONE OF SEVERAL STATISTICS FANNIE MAE SAID SHOWED INCREASED CONFIDENCE IN THE ECONOMY THE FANNIE MAE SURVEY WAS CONDUCTED BY POLLSTERS PETER HART AND ROBERT TEETER BASED ON A SURVEY OF 2198 PEOPLE LAST MONTH THEY CONCLUDED THAT 50 OF ALL AMERICANS BELIEVE NOW IS A GOOD TIME TO BUY A HOME UP FROM 38 A YEAR AGO ONE REASON FOR THE HIGHER CONFIDENCE IS A SIGNIFICANT DECREASE TO 25 THIS YEAR FROM 44 LAST YEAR IN PEOPLE WHO CONSIDER THEIR INCOME AN OBSTACLE TO BUYING A HOME THOUGH A LARGE DECLINE WAS EVIDENT IN ALL ETHNIC GROUPS IT WAS PARTICULARLY PRONOUNCED AMONG BLACKS LAST YEAR 59 OF THE BLACKS SURVEYED SAID THEY WORRIED THAT THEIR INCOME WASN'T HIGH ENOUGH TO MEET MORTGAGE PAYMENTS THIS YEAR ONLY 28 CONSIDERED THEIR INCOME AN OBSTACLE MEANWHILE AMERICANS ARE MUCH MORE AWARE OF HOUSING DISCRIMINATION THAN IN THE PAST THIS YEAR 52 SAID DISCRIMINATION IS A SERIOUS PROBLEM UP FROM 42 LAST YEAR THE CHANGE MAY REFLECT THE MEDIA AND POLITICAL ATTENTION GENERATED BY FEDERAL RESERVE BOARD REPORTS SHOWING THAT BANKS REJECT MORTGAGES FOR BLACKS ABOUT TWICE AS OFTEN AS FOR WHITES 9305110132 930511 ECONOMY JAPANESE LENDERS START TO FORECLOSE ON DEVELOPERS OF REAL ESTATE IN US BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL JAPANESE BANKS HAVE BEGUN CRACKING DOWN ON TROUBLED AMERICAN REAL ESTATE DEVELOPERS A MOVE THAT PROMISES TO INCREASE BOTH THE SUPPLY OF DISTRESSED REAL ESTATE AND REAL ESTATE LOANS UP FOR SALE TAKING A CUE FROM AMERICAN BANKS MANY OF JAPAN'S LARGEST US LENDERS HAVE STARTED FORECLOSING ON AMERICAN DEVELOPERS A DEPARTURE FROM THEIR PAST PRACTICE OF CARRYING THEM UNTIL THEY RECOVER JAPANESE BANKS ALSO HAVE BEGUN WEIGHING WHETHER TO SELL POOLS OF NONPERFORMING LOANS THE JAPANESE BANKS WITH BAD REAL ESTATE LOANS HAVE TURNED THE CORNER IN THEIR ATTITUDE ABOUT DEALING WITH THE PROBLEM SAYS KOYUNG TUNG A LAWYER IN THE NEW YORK OFFICE OF O'MELVENY & MYERS WHO REPRESENTS SEVERAL JAPANESE BANKS THEY REALIZE THIS PROBLEM WILL NOT GO AWAY IF THEY DON'T FACE UP TO IT THE STIGMA OF CONFRONTATION IS NOT THERE ANYMORE EXPLAINS AN AMERICAN EXECUTIVE OF ONE MAJOR JAPANESE BANK WHO DECLINED TO BE IDENTIFIED BECAUSE JAPANESE LENDERS STILL REMAIN EXTREMELY SENSITIVE ABOUT PUBLICITY SURROUNDING ACTION AGAINST BORROWERS THE INCREASING NUMBER OF INVESTORS WHO ARE AMASSING CAPITAL TO BUY BAD LOANS AND PROPERTIES WOULD WELCOME A NEW SUPPLY NOW THAT THE RESOLUTION TRUST CORP'S REAL ESTATE INVENTORY IS NEARLY DEPLETED AN INFLUX OF JAPANESEHELD ASSETS PROBABLY WOULD NOT GLUT THE MARKET AND THUS WOULD NOT HURT THE PROSPECTS OF AMERICAN BANKS TO MOVE THEIR OWN INVENTORY REAL ESTATE EXPERTS SAY THE JAPANESE HOLD MORE THAN 200 BILLION IN US REAL ESTATE LOANS ESTIMATES JACK RODMAN DIRECTOR OF THE PACIFIC RIM PRACTICE FOR KENNETH LEVENTHAL & CO A LOS ANGELES ACCOUNTING AND CONSULTING FIRM UNTIL RECENTLY US REGULATORS DIDN'T SCRUTINIZE THE BALANCE SHEETS OF US BRANCHES OF FOREIGN BANKS BUT THE FOREIGN BANK SUPERVISION ENHANCEMENT ACT PASSED IN THE WAKE OF THE BCCI BANKING SCANDAL REQUIRES REGULATORS TO HOLD FOREIGN BANKS TO THE SAME STANDARDS AS DOMESTIC BANKS WITH REGULATORS NOW FORCING FOREIGN BANKS TO ESTABLISH CAPITAL RESERVES FOR NONPERFORMING REAL ESTATE LOANS JAPANESE LENDERS CAN NO LONGER AFFORD TO BE LENIENT WITH BORROWERS WE'RE WORKING WITH AT LEAST A DOZEN JAPANESE BANKS ASSISTING THEM ON STRATEGIES FOR DEALING WITH THEIR NONPERFORMING REAL ESTATE SAYS MR RODMAN HE SAYS THESE BANKS ARE ABANDONING THEIR PRACTICE OF NOT RECOGNIZING NONPERFORMING LOANS EVEN IF IT MEANT WAITING 10 TO 20 YEARS FOR DEVELOPERS TO BOUNCE BACK TO BE SURE JAPANESE LENDERS STILL PREFER QUIET LOAN RESTRUCTURINGS TO FORECLOSURES WHICH REQUIRE PERMISSION FROM THE JAPANESE MINISTRY OF FINANCE BUT ON A GROWING NUMBER OF LOANS MANY TO DEVELOPERS AND OWNERS OF LUXURY HOTELS THE JAPANESE HAVE CONCLUDED THERE IS NO OTHER OPTION DAIICHI KANGYO BANK LTD MOVED LAST MONTH TO FORECLOSE ON THE WATERFRONT HILTON IN HUNTINGTON BEACH CALIF PROMPTING THE NEWPORT BEACH DEVELOPERS ROBERT MAYER AND STEPHEN BONE TO PUT THE PROJECT INTO BANKRUPTCY DAIICHI'S LOAN EXCEEDS 50 MILLION AFTER TOKAI BANK LTD INITIATED FORECLOSURE THE UNFINISHED PARK HYATT HOTEL IN SANTA MONICA CALIF SOLD IN BANKRUPTCY LAST DECEMBER FOR LESS THAN 20 MILLION THE BANK'S LOAN EXCEEDED 60 MILLION BANK OF TOKYO LTD WHICH RECENTLY TOOK CONTROL OF THE BARBIZON HOTEL AND MORGANS HOTEL IN NEW YORK CITY IS CURRENTLY PRESSURING THE BORROWERS WHO INCLUDE PHILIP PILEVSKY AND IAN SCHRAGER TO SELL THE PROPERTIES MITSUBISHI TRUST & BANKING CORP PRESSED A GROUP OF CHINESE BORROWERS LAST YEAR TO SELL THE PARK FIFTY ONE HOTEL IN NEW YORK WHICH CARRIED A 50 MILLION DEBT TWO JAPANESE LENDERS ALSO HAVE INITIATED AN ATTEMPT TO SELL THE HYATT REGENCY WAIKOLOA IN HAWAII WHICH FILED FOR BANKRUPTCY IN APRIL IN THE WAKE OF SALES OF DISTRESSED REAL ESTATE LOAN PORTFOLIOS BY BANKAMERICA CORP FIRST CHICAGO CORP NATIONSBANK AND FLEET FINANCIAL GROUP JAPANESE BANKS HAVE BEEN CONSULTING WITH US REAL ESTATE ADVISERS ABOUT WHETHER TO FOLLOW SUIT THE WHOLE IDEA OF SELLING A LOAN WAS ALIEN TO THEM SAYS AN AMERICAN EXECUTIVE AT ONE JAPANESE BANK NOW IT'S NOT SAN FRANCISCOBASED UNION BANK WHICH IS 76OWNED BY BANK OF TOKYO SAID LAST MONTH IT INTENDS TO SELL UNDERPERFORMING CALIFORNIA REAL ESTATE ASSETS WITH CURRENT BOOK VALUE OF ABOUT 80 MILLION ADVISERS SAY THAT OTHER JAPANESE BANK EXECUTIVES ARE STUDYING THE FEASIBILITY OF SUCH A MOVE BUT THAT IT MAY TAKE MONTHS BEFORE THEY DEVELOP THE CONSENSUS REQUIRED TO TAKE ACTION SELLING LOANS ON US REAL ESTATE COULD BE COMPLICATED BY THE FACT THAT MANY WERE SYNDICATED OUT TO A NUMBER OF JAPANESE LENDERS SAYS STEPHEN ROTH OF LOS ANGELESBASED SECURED CAPITAL CORP WHO RECENTLY TRAVELED TO JAPAN TO CONSULT WITH BANKERS ON THEIR OPTIONS THEREFORE EACH PARTICIPANT WOULD HAVE TO SIGN OFF ON A DEAL JAPANESE BANKS WILL BEGIN SELLING THEIR COMMERCIAL MORTGAGE EXPOSURE BY SEPTEMBER PREDICTS HIROKAZU MINAMIDA A REAL ESTATE INVESTMENT BANKER WITH NEW YORKBASED NOMURA SECURITIES INTERNATIONAL INC WHO IS ADVISING SEVERAL JAPANESE LENDERS 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 9305110131 930511 BULL UNIT SAYS JUDGE ENDS DESKTOPPROCUREMENT FIGHT BUFFALO GROVE ILL ZENITH DATA SYSTEMS SAID AN ADMINISTRATIVE LAW JUDGE DENIED THE LATEST ROUND OF PROTESTS IN THE LONGRUNNING DESKTOP IV PERSONAL COMPUTER PROCUREMENT BATTLE LEAVING ZENITH AND GOVERNMENT TECHNOLOGY SERVICES INC OF CHANTILLY VA TO SHARE THE ESTIMATED 724 MILLION AWARD ZENITH A UNIT OF FRANCE'S STATEOWNED CIE DES MACHINES BULL SAID IT EXPECTS TO START SHIPPING COMPUTERS NEXT MONTH UNDER A THREEYEAR AIR FORCE PACT UNDER TERMS OF THE PROCUREMENT THE TWO COMPANIES WILL COMPETE FOR CONTRACTS AS THEY COME UP FROM VARIOUS GOVERNMENT DEPARTMENTS THE CONTRACT COVERS AS MANY AS 300000 DESKTOP PERSONAL COMPUTERS AND RELATED PERIPHERALS AND SOFTWARE THE DECISION YESTERDAY BY JUDGE CATHERINE HYATT OF THE BOARD OF CONTRACT APPEALS ENDS AN ALMOST TWOYEAR PROCUREMENT BATTLE OVER WHAT WAS SUPPOSED TO BE A TEST OF A FASTTRACK GOVERNMENT PROCUREMENT PROCEDURE BUT THREE ROUNDS OF PROTESTS SLOWED THE PROCESS TO A CRAWL SINCE THE FIRST ATTEMPT TO AWARD THE CONTRACT IN NOVEMBER 1991 TO COMPUADD COMPUTER CORP AUSTIN TEXAS AND SYSOREX INFORMATION SYSTEMS OF FALLS CHURCH VA A SECOND AWARD TO ZENITH ALSO WAS WITHDRAWN AFTER ANOTHER ROUND OF PROTESTS FROM LOSING BIDDERS A ZENITH SPOKESMAN SAID THE COMPANY WHICH HAS ESTIMATED ANNUAL REVENUE OF 1 BILLION EXPECTS THE CONTRACT TO CONTRIBUTE AN ADDITIONAL 50 MILLION TO 100 MILLION IN REVENUE THIS YEAR 9305110130 930511 INTERNATIONAL WEST GERMAN CAR WORKERS SHOW SOLIDARITY WITH EAST A WALL STREET JOURNAL NEWS ROUNDUP BERLIN GERMAN AUTO WORKERS WALKED OFF THE JOB BRIEFLY YESTERDAY AT A MERCEDESBENZ FACTORY IN WESTERN GERMANY TO SHOW SOLIDARITY WITH STRIKES SWEEPING ACROSS THE EASTERN PART OF THE COUNTRY IT WAS THE FIRST SIGN THE METALWORKERS' WAGE STRIKES COULD LEAD TO UNREST NATIONWIDE THE STRIKES ENTERED THEIR SECOND WEEK YESTERDAY WITH MORE THAN 37000 WORKERS ON THE PICKET LINES IG METALL UNION MEMBERS ARE DEMANDING THAT EMPLOYERS ABIDE BY A CONTRACT TO BOOST WAGES BY MORE THAN 20 EMPLOYERS AGREED TO THE INCREASES IN THE EUPHORIA OF REUNIFICATION TO HELP BRING EASTERNERS' PAY UP TO WESTERN LEVELS BUSINESS LEADERS NOW SAY THEY DON'T HAVE THE MONEY AND HAVE OFFERED 9 INSTEAD MEANWHILE IG METALL MEMBERS BEGAN VOTING ON WHETHER TO EXPAND THEIR STRIKE INTO THE REMAINING THREE EASTERN GERMAN STATES IN THE THREE REMAINING STATES THE UNION'S RANKANDFILE WORKERS WILL CAST THEIR BALLOTS UNTIL TOMORROW THE UNION ALSO IS MULLING EXPANDING THE NUMBER OF COMPANIES HIT BY WALKOUTS STRIKES ALSO CONTINUED MONDAY IN THE EASTERN GERMAN STEEL INDUSTRY 9305110129 930511 THESE PEOPLE LIKE BEING INCORRECT BECAUSE THEY ARE SO VERY RIGHT BY DAVID L GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NOW THERE ARE BUTTONS AND BUMPER STICKERS FOR THE POLITICALLY INCORRECT SUCH AS THIS ONE FOR MEAT EATERS I LOVE ANIMALS THEY'RE DELICIOUS THEY COME FROM THE RIGHT STUFF A MAILORDER BUSINESS STARTED IN NEARBY SPRINGFIELD VA LAST YEAR TO SERVE THOSE WHO ARE POLITICALLY RIGHT NOT POLITICALLY CORRECT OWNERS DENNIS HOFFMAN A SELFDESCRIBED CONSERVATIVE ACTIVIST AND GEOFFREY FOSDICK AN ATTORNEY ROOTED FOR PRESIDENT BUSH LAST FALL BUT BILL CLINTON'S VICTORY MR HOFFMAN NOW CONCEDES IS THE BEST THING WE COULD HAVE ASKED FOR IN TERMS OF BUSINESS WITHOUT A VOICE IN THE WHITE HOUSE FOR THE FIRST TIME IN 12 YEARS CONSERVATIVES ARE LOOKING FOR NEW WAYS TO STATE THEIR VIEWS AT THE RIGHT STUFF NO ISSUES ARE OFFLIMITS ONE EXAMPLE IS THE KENNEDY FOR LIFEGUARD TSHIRT AMONG THE SHIRTS PINS BUMPER STICKERS AND THE RIGHT TIES ARE SLOGANS SUCH AS RUSH LIMBAUGH FOR PRESIDENT AND FOR NOSTALGIA BUFFS HE'S TAN HE'S RESTED HE'S READY NIXON IN '96 SALES ALSO SERVE AS A KIND OF CONSERVATIVE POLITICAL BAROMETER KEMP IN '96 ITEMS LEAD THE PACK SAYS MR HOFFMAN HIMSELF A FAN OF FORMER REP JACK KEMP PATRICK BUCHANAN BUTTONS ARE DOING PRETTY WELL SECOND TO KEMP HE SAYS ALSO IN DEMAND ARE NONPOLITICAL POLITICALLY INCORRECT ITEMS TO GO WITH A CONSERVATIVE'S NONPC BACONANDEGGS BREAKFAST THE RIGHT STUFF SELLS CONTRA COFFEE BY THE POUND FOR FREEDOMLOVING PEOPLE AROUND THE GLOBE AND 5 OF THE VENTURE'S COFFEE PROFITS ARE CURRENTLY BEING SENT TO EASTERN EUROPE TO SUPPORT THE REGION'S MOVE TOWARD DEMOCRACY THE RIGHT STUFF'S STUFF IS OF COURSE SEEN AS THE WRONG STUFF IN THE EYES OF LIBERALS IT SEEMS LIKE THE KIND OF PLACE THAT WOULD SELL THE TSHIRTS THE NAVY MEN AT TAILHOOK WERE WEARING SAYS PATRICIA IRELAND PRESIDENT OF THE NATIONAL ORGANIZATION FOR WOMEN WHICH HAS ITS OWN RETAIL STORE IN WASHINGTON JOSE RODRIGUEZ'S POLITICALLY CORRECT CLOTHING STORE IN WASHINGTON OFFERS A SHIRT THAT SAYS SURE YOU CAN TRUST THE GOVERNMENT JUST ASK A WHALE OR AN INDIAN NOW MR RODRIGUEZ SAYS HE ALSO PLANS TO START STOCKING POLITICALLY INCORRECT MERCHANDISE BUT ONLY TO POKE FUN AT THE RIGHT WING HE WILL BE SELLING 1 PINS FOR 5 FOR EXAMPLE BECAUSE HE WANTS CONSERVATIVES TO PAY THROUGH THE NOSE OH AND HE PLANS TO DONATE THESE PROFITS TO SOME RADICAL GAY OR LESBIAN GROUP 9305110128 930511 ECONOMY US CONSUMER CREDIT GREW 55 IN MARCH EIGHTH RISE IN A ROW WASHINGTON CONSUMER CREDIT ROSE IN MARCH FOR THE EIGHTH MONTH IN A ROW SUGGESTING AMERICANS ARE RELYING MORE ON DEBT FOR SPENDING SINCE INCOME GROWTH IS SO SLUGGISH THE FEDERAL RESERVE SAID CONSUMER INSTALLMENT CREDIT GREW AT AN ANNUAL RATE OF 55 IN MARCH OR 344 BILLION THAT FOLLOWS A JUMP OF 74 IN FEBRUARY ANALYSTS SAID THAT CONSUMERS ARE BEING FORCED TO INCREASE THEIR DEBT LOADS BECAUSE NOT MANY JOBS ARE BEING CREATED AND THOSE THAT ARE TEND TO BE LOWER PAYING HOURLY WAGES DIDN'T INCREASE AT ALL IN APRIL AND THOUSANDS OF MANUFACTURING JOBS DISAPPEARED SUGGESTING CONSUMER CREDIT WILL CONTINUE TO RISE ALL CATEGORIES OF CREDIT ROSE IN MARCH BUT REVOLVING CREDIT WHICH INCLUDES LOANS ON CREDIT CARDS GREW THE MOST IT ROSE AT AN ANNUAL RATE OF 90 OR 195 BILLION A CATCHALL CATEGORY THAT INCLUDES LOANS FOR SCHOOL TUITION TAXES AND MOBILE HOMES GREW AT A RATE OF 62 OR 118 BILLION AFTER DROPPING IN FEBRUARY LOANS FOR AUTOMOBILES ROSE AT A 14 RATE OR 310 MILLION AFTER SURGING AT NEARLY A 12 RATE IN FEBRUARY ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR MARCH IN BILLIONS AND PERCENTAGE CHANGES FROM FEBRUARY AT AN ANNUAL RATE 9305110127 930511 MARKETING & MEDIA PEPSICOLA TEST MARKETING CUBESHAPED CASE OF SODA SOMERS NY PEPSICOLA CO BELIEVES IT HAS FOUND THE PACKAGING OF THE FUTURE AND IT IS SQUARE THE SOFT DRINK MAKER HAS BEGUN TESTING A 24CAN PACKAGE NAMED AND TRADEMARKED THE CUBE THAT STACKS A CASE OF SODA POP IN TWO ROWS OF 12 THE CUBE WILL COST THE SAME AS A CONVENTIONAL CASE WHICH HAS ALL 24 CANS IN A SINGLE LAYER PEPSI'S CUBE WHICH IS BEING TEST MARKETED IN PITTSBURGH IS THE LATEST ATTEMPT TO CAPITALIZE ON THE POPULARITY OF BIGGER SOFTDRINK PACKAGES THE CURRENT 24PACK OR CASE NOW ACCOUNTS FOR ABOUT 10 OF ALL SOFTDRINK SALES IN SUPERMARKETS THE PEPSICO INC UNIT SAID INNOVATIONS SUCH AS THE SIXPACK AND THE TWOLITER PLASTIC BOTTLE HAVE PROPELLED SOFTDRINKS SALES IN THE PAST WITH A HANDLE AND DOUBLEDECK DESIGN THE CUBE IS EASIER TO CARRY AND FITS BETTER IN REFRIGERATORS PEPSI SAID IT WILL BE ADVERTISED WITH THE SLOGAN NOW IT'S EVEN EASIER TO PUT AWAY A CASE OF PEPSI IF THE PITTSBURGH TEST MARKETING IS SUCCESSFUL THE COMPANY PLANS TO LAUNCH THE CUBE IN OTHER MARKETS THIS SUMMER 9305110126 930511 POLL SHOWS MORE SUPPORT FOR US ACTION IN BOSNIA WASHINGTON A NEW SURVEY DESIGNED BY PRESIDENT CLINTON'S POLLSTER SUGGESTS THAT A GROWING NUMBER OF AMERICANS THINK THE US AND THE UNITED NATIONS AREN'T DOING ENOUGH TO STOP THE KILLING IN BOSNIA THE SURVEY A SAMPLING OF MORE THAN 1000 ADULTS SUGGESTS VOTERS MIGHT BE PREPARED TO SUPPORT A MORE AGGRESSIVE POLICY IN BOSNIA POLLSTERS ASKED WHETHER THE US AND THE UN HAVE GONE TOO FAR NOT FAR ENOUGH OR DONE JUST WHAT IS NEEDED IN BOSNIA JUST 8 OF THOSE SURVEYED SAID THE RESPONSE IN BOSNIA HAS GONE TOO FAR WHILE 45 SAID IT HASN'T GONE FAR ENOUGH BY CONTRAST WHEN A SIMILAR QUESTION WAS ASKED IN LATE FEBRUARY 14 SAID THE ACTIONS HADN'T GONE FAR ENOUGH THE POLL DIDN'T ASK RESPONDENTS FOR THEIR OPINIONS ON SPECIFIC ACTIONS THE POLL WAS SPONSORED BY THE BIPARTISAN AMERICANS TALK ISSUES FOUNDATION AND DESIGNED BY STANLEY GREENBERG PRESIDENT CLINTON'S POLLSTER MR GREENBERG SAID THE FINDINGS SUGGEST THAT THERE IS PUBLIC SUPPORT FOR A MORE ASSERTIVE POLICY IN BOSNIA PROVIDED THAT THE US ACTS AS PART OF AN INTERNATIONAL COALITION WHAT THE PUBLIC WANTS IS AN ACTION THAT IS PART OF A UN ACTION HE SAID 9305110125 930511 WHO'S NEWS MID OCEAN REINSURANCE CO MID OCEAN REINSURANCE CO HAMILTON BERMUDA MICHAEL A BUTT 50 YEARS OLD WAS NAMED VICE CHAIRMAN WITH RESPONSIBILITIES FOR GENERAL ADMINISTRATION AND WORLDWIDE MARKETING A NEW POST MR BUTT IS A DIRECTOR AT PHOENIX SECURITIES AN INVESTMENT CONCERN IN LONDON AND A BOARD MEMBER OF MID OCEAN SINCE ITS INCEPTION LAST NOVEMBER MID OCEAN IS A WORLDWIDE REINSURER SPECIALIZING IN PROPERTY CATASTROPHE COVERAGE 9305110124 930511 EDS TO BUY BEI HOLDINGS UNIT DALLAS ELECTRONIC DATA SYSTEMS CORP SAID IT AGREED TO ACQUIRE BEI HOLDINGS LTD'S BEI GOLEMBE UNIT EDS THE COMPUTER SERVICES UNIT OF GENERAL MOTORS CORP DIDN'T DISCLOSE THE TERMS OF THE PROPOSED ACQUISITION BUT A SPOKESMAN FOR BEI HOLDINGS SAID EDS IS ACQUIRING THE UNIT FOR 22 MILLION EDS SAID IT EXPECTS TO COMPLETE THE TRANSACTION WITHIN THE NEXT FEW WEEKS BEI GOLEMBE IS A FINANCIAL INDUSTRY CONSULTING FIRM BASED IN ATLANTA 9305110123 930511 NEW JERSEY BOND UNDERWRITING INQUIRY IS SAID TO BROADEN TO BUTCHER & SINGER BY LAURIE P COHEN AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FEDERAL INVESTIGATORS ARE EXAMINING THE RELATIONSHIP BETWEEN BUTCHER & SINGER INC AND A BOND DEALER THAT IS COOWNED BY AN AIDE TO NEW JERSEY GOV JIM FLORIO TO DETERMINE WHETHER THE FIRM HELPED BUTCHER & SINGER WIN NEW JERSEY BOND UNDERWRITING BUSINESS ACCORDING TO INDIVIDUALS WITH KNOWLEDGE OF THE INQUIRY FEDERAL INVESTIGATORS ARE LOOKING INTO WHETHER BUTCHER & SINGER A PHILADELPHIABASED UNIT OF WHEAT FIRST SECURITIES INC MAY HAVE IMPROPERLY PROFITED FROM ITS RELATIONSHIP WITH ARMACON SECURITIES A SMALL CLEMENTON NJ BOND DEALER ARMACON IS JOINTLY OWNED BY NICHOLAS RUDI AND JOSEPH C SALEMA MR SALEMA PUT HIS ARMACON INTEREST INTO A BLIND TRUST ABOUT SEVEN MONTHS AFTER BECOMING GOV FLORIO'S CHIEF OF STAFF ARNOLD BURNS AN ATTORNEY FOR MR SALEMA HAS SAID MR SALEMA HAD NOTHING TO DO WITH SELECTING BOND UNDERWRITERS WE HAVE NOT BEEN CONTACTED BY ANY REGULATORY AUTHORITY NOR HAVE WE RECEIVED A SUBPOENA A WHEAT FIRST SPOKESWOMAN SAID YESTERDAY THE SPOKESWOMAN AS WELL AS OTHER BUTCHER & SINGER EXECUTIVES DECLINED TO COMMENT ON ANY OTHER MATTER PERTAINING TO THE INVESTIGATION THE INQUIRY INTO BUTCHER & SINGER IS PART OF A LARGER INVESTIGATION INTO THE SALE OF 29 BILLION OF NEW JERSEY TURNPIKE BONDS IN 1991 AND 1992 AS REPORTED THE US ATTORNEY'S OFFICE IN MANHATTAN AND THE SECURITIES AND EXCHANGE COMMISSION ARE LOOKING INTO WHETHER MERRILL LYNCH & CO MADE ILLEGAL PAYMENTS TO ARMACON TO RECEIVE PART OF THE TURNPIKEBOND BUSINESS MERRILL HAS SAID IT IS COOPERATING FULLY WITH THE INQUIRY AND THAT IT HAS PLACED THREE OF ITS TOP MUNICIPALBOND EXECUTIVES ON ADMINISTRATIVE LEAVE PENDING COMPLETION OF THE INVESTIGATION MERRILL SAID IT HAS FOUND NO EVIDENCE OF CRIMINAL CONDUCT BY THE THREE EXECUTIVES HOWEVER AN INDIVIDUAL WITH KNOWLEDGE OF THE CASE SAID THE THREE DIDN'T PROVIDE ANY EXPLANATION AS TO WHY MERRILL ESTABLISHED A JOINT ACCOUNT WITH ARMACON PRIOR TO BEING SELECTED TO THE LUCRATIVE POSITION OF LEAD UNDERWRITER FOR A 16 BILLION SEGMENT OF THE BOND SALE THE BIGGEST CHUNK OF THE ISSUE MERRILL HAS SAID IT FOUND APPARENT IRREGULARITIES RELATED TO ITS DEALINGS WITH ARMACON IN 1991 BUTCHER & SINGER AND ITS PARENT WHEAT FIRST HAVE SERVED AS LEAD OR COMANAGER WITH ARMACON ON UNDERWRITINGS MORE FREQUENTLY THAN ANY OTHER SINGLE SECURITIES FIRM ACCORDING TO SECURITIES DATA CO WHICH TRACKS SUCH DEALS BUTCHER & SINGER OR WHEAT FIRST HAS BEEN EITHER LEAD MANAGER OR COMANAGER ON FIVE OF THE 14 UNDERWRITINGS IN WHICH ARMACON HAS PLAYED A MAJOR ROLE BETWEEN NOVEMBER 1991 AND MARCH 1993 CHESAPEAKE BEACH MD ACCOUNTED FOR THREE OF THOSE ISSUES THE OTHER TWO WERE DONE ON BEHALF OF NEW JERSEY ISSUERS THIS BUSINESS HELPED PROP BUTCHER & SINGER IN THE WIDELY WATCHED RANKINGS OF THE NATION'S MUNICIPALBOND UNDERWRITERS THOUGH BUTCHER & SINGER HAD LESS THAN A 1 MARKET SHARE IN ALL NEW MUNICIPALBOND OFFERINGS IN 1992 THE FIRM WAS RANKED NO 12 IN NEW JERSEY WITH A 26 MARKET SHARE ACCORDING TO SECURITIES DATA BUTCHER & SINGER PARTICIPATED IN THE 16 BILLION NEW JERSEY TURNPIKE BOND SALE TOO AS ONE OF MORE THAN A DOZEN COMANAGERS IN THE UNDERWRITING SYNDICATE WHICH BOUGHT THE BONDS FROM THE TURNPIKE AUTHORITY AND RESOLD THEM TO INVESTORS WHILE BUTCHER & SINGER RISKED THE SAME AMOUNT OF CAPITAL AS NINE OTHER COMANAGERS ITS ALLOCATION OF 346 OF THE TOTAL ISSUE AND THEREFORE ITS POTENTIAL REVENUE WAS MUCH LARGER FOR EXAMPLE UNDERWRITER AG EDWARDS & SONS INC WAS ALLOCATED ONLY 086 GIVING IT POTENTIAL REVENUE OF ABOUT 85000 FAR LESS THAN THE 343685 FOR BUTCHER & SINGER THE WHEAT FIRST SPOKESWOMAN DECLINED TO COMMENT SEPARATELY ONE OF THE COOPERATING WITNESSES IN THE FEDERAL INVESTIGATION IS JOHN D MILLER THE FORMER HEAD OF MERRILL'S MUNICIPALBOND FINANCE DEPARTMENT WHO NOW IS ON MEDICAL LEAVE FROM THE FIRM PEOPLE FAMILIAR WITH THE MATTER SAID MR MILLER HEADED MERRILL'S MUNICIPALBOND GROUP IN 1991 DURING THE SAME TIME THAT THE BIG BROKERAGE FIRM FOUND THE APPARENT IRREGULARITIES RELATED TO TRANSACTIONS MERRILL CONDUCTED WITH ARMACON MR MILLER HAS BEEN ASKED LIKE LOTS OF OTHER PEOPLE TO TALK TO PEOPLE IN THE GOVERNMENT ABOUT THE INCIDENTS AND HAS BEEN COOPERATIVE SAID THEODORE MARGOLIS MR MILLER'S ATTORNEY MR MARGOLIS DECLINED TO COMMENT FURTHER MR MILLER HAS BEEN AMONG MERRILL'S MOST SENIOR SPECIALISTS IN PUBLIC FINANCE SINCE JOINING THE FIRM IN 1971 MERRILL SAYS MR MILLER WHO HAS BEEN ON MEDICAL LEAVE SINCE EARLY 1992 PERSONALLY HAS NEGOTIATED SEVERAL BILLION DOLLARS IN MUNICIPAL BOND UNDERWRITINGS INCLUDING FINANCINGS FOR THE NEW JERSEY SPORTS AND EXPOSITION AUTHORITY THE NEW JERSEY BUILDING AUTHORITY AND THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY 9305110122 930511 TOYOTA INCREASED SPENDING ON USMADE PARTS IN '92 LONG BEACH CALIF TOYOTA MOTOR CORP SAID IT PURCHASED 44 BILLION IN USMADE PARTS AND MATERIALS IN ITS YEAR ENDED MARCH 31 1993 A 41 INCREASE FROM THE PREVIOUS YEAR TOYOTA AND OTHER JAPANESE AUTO MAKERS HAVE BEEN UNDER HEAVY POLITICAL PRESSURE TO BOOST THE LEVEL OF DOMESTIC CONTENT IN THEIR VEHICLES IN ADDITION PURCHASING PARTS AND MATERIALS FROM US SUPPLIERS SERVES AS A BUFFER AGAINST CURRENCY FLUCTUATIONS THE YEN'S INCREASE IN VALUE AGAINST THE DOLLAR HAS CAUSED JAPANESE AUTO MAKERS TO RAISE PRICES SHARPLY OVER THE PAST YEAR TOYOTA SAID MORE THAN HALF OF THE 44 BILLION COMES FROM WHOLLY OWNED US COMPANIES OR US JOINT VENTURE COMPANIES AT MARCH 31 415 US COMPANIES WERE SUPPLYING PARTS TO TOYOTA THE COMPANY SAID UP 39 FROM A YEAR EARLIER IN FISCAL 1994 WHICH ENDS MARCH 1995 TOYOTA SAID IT EXPECTS TO PURCHASE 53 BILLION IN USMADE PARTS AND MATERIALS THE AUTO MAKER FIRST BOUGHT USBUILT PARTS AND MATERIALS IN 1988 FOR THE PRODUCTION OF THE CAMRY IN KENTUCKY THAT YEAR TOYOTA BOUGHT 11 BILLION IN US MANUFACTURED PARTS TOYOTA ANNOUNCED ITS PURCHASE LEVELS AT ITS NORTH AMERICAN IMPORT SUPPLIERS' MEETING IN LONG BEACH CALIF 9305110121 930511 MARKETING & MEDIA HBO TO SELL DISTRIBUTION RIGHTS NEW YORK HOME BOX OFFICE INC SAID IT AGREED TO SELL FOREIGN DISTRIBUTION RIGHTS TO AS MANY AS 24 OF ITS FILMS OVER TWO YEARS TO A UNIT OF COMMUNICATIONS & ENTERTAINMENT CORP UNDER THE AGREEMENT ODYSSEY ENTERTAINMENT LTD A SUBSIDIARY OF COMMUNICATIONS & ENTERTAINMENT WILL BUY EXCLUSIVE FOREIGN RIGHTS TO A MINIMUM OF FIVE AND A MAXIMUM OF 12 FILMS A YEAR PRODUCED BY HBO A TIME WARNER INC UNIT COMMUNICATIONS & ENTERTAINMENT LOS ANGELES IS A FINANCER AND DISTRIBUTOR OF FILMS 9305110119 930511 FOREIGN EXCHANGE DOLLAR SOARS AGAINST MAJOR CURRENCIES MARKET SHIFTS FOCUS TO EUROPE'S UNEASE BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR SOARED MONDAY AS IT BROKE THROUGH SEVERAL IMPORTANT TECHNICAL RESISTANCE LEVELS AGAINST OTHER MAJOR CURRENCIES AND THE MARKET SHIFTED ITS FOCUS TOWARD RENEWED SIGNS OF POLITICAL AND ECONOMIC UNCERTAINTY IN EUROPE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16074 MARKS UP FROM 15838 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11175 YEN UP FROM 11030 YEN STERLING WAS TRADING AT 15330 DOWN FROM 15715 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11128 YEN AND AT 16055 MARKS THE DOLLAR HAD REBOUNDED FRIDAY FROM WEAKERTHANEXPECTED US APRIL EMPLOYMENT DATA PLAYERS NOTED FOLLOWTHROUGH BUYING FROM THAT DEVELOPMENT PROVIDED MUCH OF THE INITIAL SPARK TO MONDAY'S STRONG MOVE UPWARD THEY SAID ON FRIDAY YOU COULD JUST SENSE THE DOLLAR WAS WAITING TO TAKE OFF SAID BELAL KHAN SENIOR CUSTOMER DEALER AT BANK OF TOKYO THE US DEPARTMENT OF LABOR REPORTED FRIDAY THAT NONFARM PAYROLLS ROSE 119000 IN APRIL THE NUMBER WASN'T ALL THAT TERRIFIC BUT IT WASN'T ALL THAT BAD MR KHAN SAID THE DOLLAR HAD DROPPED IMMEDIATELY AFTER THE DATA WERE RELEASED FRIDAY BUT THEN RECOVERED WHEN IT MET SOLID TECHNICAL SUPPORT DEALERS SAID ALSO CONTRIBUTING TO THE DOLLAR'S ADVANCE MONDAY WAS NEW ATTENTION TO INDICATIONS OF INSTABILITY ECONOMIC AND POLITICAL IN EUROPE PLAYERS SAID RELEASE OF THE US JOBS DATA AFTER MORE THAN A WEEK OF MOUNTING ANTICIPATION GAVE THE MARKET A REASON TO MOVE ITS GAZE FROM THE US ECONOMY MR KHAN SAID THE MARKET DOESN'T STAY FOCUSED ON ONE SUBJECT FOR TOO LONG NOW ATTENTION IS ON THE PROBLEMS IN EUROPE THE BAD NEWS ABOUT THE US IS OUT FOR NOW MR KHAN SAID PLAYERS ARE INCREASINGLY CONCERNED ABOUT THE DEPTH OF GERMANY'S RECESSION SAID VALERIE WALKER HEAD OF CORPORATE SALES AT NATIONAL WESTMINSTER BANK WE'RE SEEING A DETERIORATING SITUATION IN GERMANY SHE SAID AND THIS HAS RAISED SPECULATION THE BUNDESBANK GERMANY'S CENTRAL BANK MAY BECOME MORE AGGRESSIVE IN ITS PACE OF CUTTING GERMAN INTEREST RATES LOWER RATES WOULD TEND TO MAKE GERMANY A LESS ATTRACTIVE PLACE FOR INVESTORS THUS DIMINISHING DEMAND FOR MARKS TRADERS NOTED ADDITIONALLY RUMORS MONDAY THAT GERMAN FINANCE MINISTER THEO WAIGEL MAY BE CONTEMPLATING RESIGNATION TENDED TO SUPPORT THE DOLLAR SAID JAMES T MCGROARTY SENIOR VICE PRESIDENT OF FOREIGN EXCHANGE AT GREENWICH CAPITAL MARKETS IN GREENWICH CONN PLAYERS SAID THE US CURRENCY'S SURGE ACCELERATED AFTER IT BROKE THROUGH SEVERAL KEY TECHNICAL RESISTANCE LEVELS IN NORTH AMERICAN TRADING ONCE WE WERE PERCEIVED TO HAVE BROKEN THE RECENT RANGE IN THE DOLLAR AGAINST THE MARK THIS PROVOKED A STRONG SHORTCOVERING RALLY MR MCGROARTY SAID AND THE SHORT COVERING BOOSTED THE DOLLAR AGAINST MAJOR CURRENCIES INCLUDING THE YEN TRADERS SAID UNCONFIRMED RUMORS THAT SEVERAL EUROPEAN CENTRAL BANKS WERE SELLING DOLLARS FOR MARKS NEAR THE DOLLAR'S INTRADAY HIGHS FINALLY HALTED THE DOLLAR'S RALLY TRADERS SAID IF SUCH SALES DID OCCUR THEY DIDN'T REPRESENT INTERVENTION TO INTENTIONALLY SLOW THE DOLLAR'S MOVE BUT RATHER WERE ATTEMPTS BY THE CENTRAL BANKS TO ADJUST THEIR CURRENCY RESERVES MR MCGROARTY SAID STERLING EXPERIENCED ONE OF THE DAY'S MORE PROMINENT DECLINES AGAINST THE DOLLAR TRADERS SAID IT DROPPED AGAINST MOST OTHER MAJOR CURRENCIES AS WELL THEY ADDED INCREASING CALLS FOR THE DISMISSAL OF UK CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT WERE THE MOST IMMEDIATE CAUSE FOR STERLING'S PLUNGE SAID EDWARD COOK A VICE PRESIDENT AT NATIONAL WESTMINSTER BANK THE RULING CONSERVATIVE PARTY WAS ROUTED IN BALLOTING TO FILL A VACANT SEAT IN THE HOUSE OF COMMONS THURSDAY AND ALSO SUFFERED LOSSES IN A VARIETY OF LOCAL COUNCIL ELECTIONS VOTER FRUSTRATION WITH THE LENGTH OF THE UK RECESSION HAS BEEN WIDELY CITED AS A REASON FOR THE TORY DEFEATS THE POSSIBILITY OF MR LAMONT'S DEPARTURE FROM THE GOVERNMENT HAS RAISED THE LEVEL OF POLITICAL UNCERTAINTY IN BRITAIN MR COOK SAID WHEN THERE'S POLITICAL UNCERTAINTY THERE USUALLY IS A MOVE OUT OF THE CURRENCY INVOLVED HE ADDED 9305110118 930511 WHO'S NEWS CREATIVE TECHNOLOGY LTD CREATIVE TECHNOLOGY LTD MILPITAS CALIF EDWARD ESBER JR FORMERLY CHAIRMAN AND CHIEF EXECUTIVE OF ASHTONTATE CORP WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF CREATIVE LABS INC A UNIT OF THIS COMPUTER COMPONENT COMPANY MR ESBER 41 YEARS OLD SUCCEEDS KS CHAY WHO RETAINS HIS DUTIES AS PRESIDENT OF CREATIVE TECHNOLOGY 9305110116 930511 WELLS FARGO PLANS REDEMPTION SAN FRANCISCO WELLS FARGO & CO SAID IT WILL REDEEM ON JUNE 15 ALL OF ITS 7 7/8 SINKING FUND DEBENTURES WHICH HAD BEEN DUE NOV 15 1997 THE REDEMPTION PRICE WILL BE 100 OF THE PRINCIPAL AMOUNT OF THE DEBENTURES PLUS ACCRUED INTEREST THE BANK SAID IT WAS MAKING THE EARLY REDEMPTION TO REPLACE HIGHCOUPON FIXEDRATE DEBT WITH THE PROCEEDS OF LOWERCOUPON DEBT SEPARATELY WELLS SAID IT WILL REDEEM ALL OF ITS 86 DEBENTURES DUE 2002 ON JUNE 15 AT 10172 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST 9305110115 930511 MARKETING & MEDIA ABC ANNOUNCES PRIMETIME LINEUP ALL NIGHTS CHANGED BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SECONDPLACE NETWORK ABC ANNOUNCED A PRIMETIME SCHEDULE FOR FALL WITH EIGHT HOURS OF NEW SERIES SEVEN COMEDIES AND FOUR DRAMAS AND CHANGES ON EVERY NIGHT OF THE WEEK PARTICULARLY HARD HIT WAS WEDNESDAY WITH ALL BUT ONE HALFHOUR THE HIGHLY SUCCESSFUL HOME IMPROVEMENT CHANGED TUESDAY NIGHT WHERE ABC THIS SEASON CEDED RATINGS LEADERSHIP TO CBS ALSO GOT AN OVERHAUL AS DID SATURDAY AMONG THE NEW SHOWS ARE TWO PROGRAMS FROM ABC PRODUCTIONS THE NETWORK'S INHOUSE PRODUCTION UNIT HOLLYWOOD STUDIO EXECUTIVES SAID THOSE PROGRAMS WERE ADDED AT THE LAST MINUTE AFTER ABC'S PROGRAMMING EXECUTIVES HAD ALREADY SETTLED ON A TENTATIVE SCHEDULE THAT DIDN'T INCLUDE ITS OWN PROGRAMS THE CHANGE THE HOLLYWOOD EXECUTIVES SAID CAME AT THE BEHEST OF SENIOR EXECUTIVES AT ABC PARENT CAPITAL CITIES/ABC INC WHO WANTED MORE INHOUSE PRODUCT ON THE AIR THE FEDERAL COMMUNICATIONS COMMISSION RECENTLY RELAXED RULES LIMITING THE AMOUNT OF PROGRAMS NETWORKS COULD PRODUCE HOLLYWOOD PRODUCERS HAVE LONG RESISTED THE RELAXATION OF THOSE RULES FEARING THE NETWORKS WILL FAVOR THEIR OWN SHOWS OVER THOSE PRODUCED BY OUTSIDERS THE HOLLYWOOD EXECUTIVES SAID ABC'S MOVE INDICATES THEIR FEARS ARE JUSTIFIED AN ABC SPOKESMAN DECLINED TO COMMENT ON ITS SCHEDULING PROCESS OTHER THAN TO SAY THAT THE SCHEDULE IS ALWAYS A WORK IN PROGRESS UNTIL ANNOUNCED BUT OTHERS AT THE COMPANY PLAYED DOWN THE SIGNIFICANCE OF THE LASTMINUTE SCHEDULE CHANGES SAYING THEY WERE DICTATED MORE BY 11TH HOUR NEGOTIATIONS WITH THE HOLLYWOOD STUDIOS ABC ALSO POINTED OUT THAT THREE OF ITS ABC PRODUCTIONS FROM LAST SEASON WERE CANCELED BECAUSE OF POOR RATINGS JACK'S PLACE CAMP WILDER AND SIRENS SOCALLED QUALITY DRAMAS TOOK A HIT WITH HOMEFRONT CIVIL WARS LIFE GOES ON AND THE THE YOUNG INDIANA JONES CHRONICLES ALL GETTING CANCELED OTHER CANCELLATIONS NONE OF THEM MUCH OF A SURPRISE INCLUDED THE SITCOMS GETTING BY DELTA DOOGIE HOWSER MD HOME FREE THE WONDER YEARS AND THE JACKIE THOMAS SHOW THE NEW LINEUP INCLUDES A HODGEPODGE OF GENRES FROM A YOUTHORIENTED SITCOM TO THE ACTIONADVENTURE LOIS & CLARK THE NEW ADVENTURES OF SUPERMAN OTHER SHOWS GETTING A PICKUP FROM ABC WERE STEVEN BOCHCO'S NYPD BLUE AND A SITCOM GRACE UNDER FIRE FROM CARSEYWERNER PRODUCTIONS PRODUCER OF THE TOPRATED ROSEANNE 9305110114 930511 CLINTON WEIGHS SENDING TROOPS INTO MACEDONIA BUT HE ALSO SIGNALS DOUBT ON BOSNIAN AIR STRIKES AMID ALLIES' INDECISION BY CARLA ANNE ROBBINS AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING SENDING US PEACEKEEPERS TO MACEDONIA POTENTIALLY THE FIRST COMMITMENT OF US GROUND TROOPS TO THE BALKANS PRESIDENT CLINTON MEANWHILE APPEARED TO SIGNAL DOUBTS ABOUT HIS PROPOSAL TO USE LIMITED MILITARY FORCE TO END THE BLOODY CIVIL WAR IN BOSNIA ASKED IN CHICAGO LAST NIGHT IF HE WAS PLANNING AIR STRIKES IN BOSNIA THE PRESIDENT ANSWERED I THINK WE CAN STOP A LOT OF THE TERRIBLE THINGS WITHOUT DOING THAT THE CLINTON ADMINISTRATION HAS BEEN TRYING TO PERSUADE ITS EUROPEAN ALLIES TO ACCEPT A TWOPRONGED STRATEGY IN BOSNIA A LIFTING OF THE ARMS EMBARGO ON BOSNIA'S MUSLIMLED GOVERNMENT AND AIR STRIKES TO CONTAIN FURTHER SERBIAN AGGRESSION BUT AMERICA'S CLOSEST ALLIES HAVE SO FAR FAILED TO AGREE THE PRESIDENT'S COMMENT LAST NIGHT SEEMED TO SUGGEST THAT THE ADMINISTRATION IS LOSING HOPE THAT IT CAN WIN ALLIED SUPPORT FOR MR CLINTON'S PLAN EC FOREIGN MINISTERS MEETING IN BRUSSELS DECLARED THAT MORE TIME IS NEEDED TO SEE IF SERBIA'S PROMISED CUTOFF OF SUPPLIES TO BOSNIA'S SERBS WILL BE ABLE TO HALT THE FIGHTING US INTELLIGENCE ANALYSTS SAY THAT SERBIA IS VIOLATING THAT PLEDGE AERIAL RECONNAISSANCE PHOTOGRAPHS THEY SAY SHOW FUELLADEN TANKERS CONTINUING TO CROSS THE DRINA RIVER INTO BOSNIA THE UNITED NATIONS HAS AROUND 800 BLUE HELMETS STATIONED IN MACEDONIA THE SOUTHERNMOST FORMER YUGOSLAV REPUBLIC ANY US CONTRIBUTION WOULD LIKELY BE IN THE HUNDREDS NOT THE THOUSANDS SAYS ONE US OFFICIAL WHO STRESSED THAT NO DECISION HAS YET BEEN MADE PRESIDENT CLINTON HAS CRITICIZED THE BUSH ADMINISTRATION FOR NOT MOVING QUICKLY ENOUGH TO HEAD OFF CIVIL WARS IN BOSNIA AND CROATIA STRENGTHENING A PEACEKEEPING FORCE IN MACEDONIA BEFORE A CONFLICT CAN ERUPT THE CLINTON ADMINISTRATION SAYS WOULD PUT THE US AHEAD OF THE CURVE THIS TIME THE CLINTON ADMINISTRATION HAS TOLD ITS EUROPEAN ALLIES THAT IT COULD SEND SOME 20000 US PEACEKEEPERS TO BOSNIA ONCE A PEACE AGREEMENT IS REACHED BUT THE POLITICAL DEBATE AT HOME HASN'T YET BEEN JOINED BECAUSE A PEACE ACCORD HAS SEEMED SO UNLIKELY IF THE ADMINISTRATION IS SERIOUS ABOUT SENDING EVEN A FAR SMALLER NUMBER OF PEACEKEEPERS TO MACEDONIA IT COULD NOW FORCE THE DEBATE OUT INTO THE OPEN THE QUESTION OF HOW TO PREVENT YUGOSLAVIA'S ETHNIC CONFLICT FROM SPREADING TO MACEDONIA WAS A KEY ISSUE IN SECRETARY OF STATE WARREN CHRISTOPHER'S DISCUSSIONS LAST WEEK WITH EUROPEAN ALLIES THERE'S CURRENTLY NO FIGHTING IN MACEDONIA BUT US AND EUROPEAN OFFICIALS HAVE LONG BEEN HAUNTED BY A NIGHTMARE SCENARIO IN WHICH SERBIAN AGGRESSION AND THE BLOODY ETHNIC CONFLICT MOVES SOUTHWARD FIRST TO KOSOVO AN ETHNICALLY ALBANIAN PROVINCE OF SERBIA AND THEN TO MACEDONIA DRAWING IN NEIGHBORING GREECE ALBANIA AND BULGARIA AS WELL AS TURKEY THERE HAS BEEN NO DISCUSSION OF PLACING PEACEKEEPERS IN KOSOVO BECAUSE DOING SO WOULD PROBABLY REQUIRE PERMISSION FROM SERBIA IN THEIR DISCUSSIONS WITH MR CHRISTOPHER EUROPEAN OFFICIALS EXPRESSED FEAR THAT IF THE ARMS EMBARGO IS LIFTED ON BOSNIA'S MUSLIMLED GOVERNMENT WEAPONS AND FIGHTING COULD SPILL OVER TO KOSOVO AND MACEDONIA BEEFING UP A UN PEACEKEEPING FORCE THERE WOULD BE ONE WAY TO ALLAY THOSE FEARS THE EUROPEANS ALSO HAVE COMPLAINED BITTERLY ABOUT THE US'S REFUSAL TO COMMIT ANY GROUND TROOPS TO PEACEKEEPING EFFORTS IN THE FORMER YUGOSLAVIA AND THEY HAVE CHARGED THE US WITH BEING OVERLY WILLING TO CONSIDER MILITARY ACTION IN BOSNIA BECAUSE THE US HAS NO TROOPS AT RISK EC FOREIGN MINISTERS AGREED TO INVITE RUSSIA AND THE US TO SEND TROOPS TO PROTECT UNDESIGNATED SAFE AREAS IN BOSNIA PEACEKEEPERS IN MACEDONIA WOULD BE A VISIBLE CONTRIBUTION AND WOULD INCREASE OUR CREDIBILITY SAYS ONE US OFFICIAL BOTH PRESIDENT CLINTON AND FORMER PRESIDENT BUSH HAVE DRAWN A LINE IN THE SAND AROUND KOSOVO AND MACEDONIA WARNING SERBIAN LEADER SLOBODAN MILOSEVIC THAT THE US WOULDN'T TOLERATE ANY AGGRESSION THERE MACEDONIA HAS REQUESTED AS MANY AS 5000 INTERNATIONAL PEACEKEEPERS SAID LJUBICA Z ACEVSKA MACEDONIA'S WASHINGTON REPRESENTATIVE BUT SHE INSISTS THAT MACEDONIA WON'T ACCEPT ANY US TROOPS UNTIL THE US GRANTS HER COUNTRY DIPLOMATIC RECOGNITION THAT COULD HAPPEN WITHIN THE NEXT FEW WEEKS ONCE MACEDONIA AND GREECE SETTLE A DISPUTE OVER THE FORMER REPUBLIC'S NAME THE US HAS BEEN USING AERIAL RECONNAISSANCE TO MONITOR SERBIA'S PROMISED EMBARGO ANNOUNCED THURSDAY THE TANKER MOVEMENTS ARE CONSIDERED SIGNIFICANT BECAUSE INTELLIGENCE ANALYSTS BELIEVE THAT BOSNIAN SERB FORCES HAVE EXTREMELY SMALL RESERVES OF FUEL PROBABLY LESS THAN ONE WEEK'S SUPPLY IF IT DECIDES TO STICK WITH ITS PLANS FOR MILITARY ACTION IN BOSNIA THE CLINTON ADMINISTRATION COULD PRESENT THE EVIDENCE OF EMBARGO VIOLATIONS TO ITS EUROPEAN ALLIES AS FURTHER PROOF OF SERBIAN DUPLICITY AND THE NEED FOR STRONGER ACTION THE WHITE HOUSE SAID YESTERDAY THAT IT WOULD DEFER ANY FINAL DECISIONS REGARDING BOSNIA UNTIL AFTER BOSNIA'S SERBS VOTE THIS WEEKEND ON WHETHER TO ACCEPT A PEACE ACCORD WHITE HOUSE SPOKESWOMAN DEE DEE MYERS SAID PRESIDENT CLINTON'S STRATEGY ON BOSNIA IS IN KIND OF A HOLDING PATTERN FOR THE MOMENT THE PRESIDENT IS WORKING TO BUILD A CONSENSUS FOR ACTION I DON'T THINK WE ARE EXPECTING ANY ACTION IN THE IMMEDIATE FUTURE AS THE US CONTINUES ITS DIPLOMATIC EFFORTS US MILITARY CARGO FLIGHTS TO THE MEDITERRANEAN AREA ARE SAID TO BE INCREASING AS THE US BUILDS UP SUPPLIES FOR EITHER A PEACEKEEPING MISSION OR MILITARY ACTION THE US APPEARS TO BE AIMING FOR A STATE OF READINESS BY JUNE 1 MEANWHILE DESPITE A TRUCE AGREEMENT BETWEEN BOSNIAN MUSLIMS AND CROATS FIGHTING CONTINUED IN CENTRAL AND SOUTHERN BOSNIA BOSNIAN MUSLIMCONTROLLED RADIO REPORTED A SEPARATE CEASEFIRE BETWEEN MUSLIMS AND SERBS APPEARED TO BE HOLDING FOR A SECOND DAY 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 9305110113 930511 GATEWAY 2000 REVENUE UP 78 NORTH SIOUX CITY SD GATEWAY 2000 A PRIVATELY HELD DIRECTMARKET COMPUTER MAKER SAID FIRSTQUARTER REVENUE GREW 78 TO 421 MILLION FROM 236 MILLION THE COMPANY SAID IT SHIPPED MORE THAN 163000 PERSONAL COMPUTERS IN THE PERIOD A 75 JUMP FROM 93000 IN THE SAME PERIOD OF LAST YEAR THE COMPANY DOES NOT REPORT OTHER QUARTERLY FIGURES 9305110112 930511 ORACLE CORP U S WEST REDWOOD SHORES CALIF ORACLE CORP AND U S WEST ARE EXPECTED TO ANNOUNCE TODAY A JOINT VENTURE AIMED AT PROVIDING A VARIETY OF ELECTRONIC SERVICES AIMED AT BUSINESS SCHOOLS AND HOMES THE TWO COMPANIES ARE EXPECTED TO ANNOUNCE SERVICES THAT WILL INCLUDE MAIL AND VOICE MESSAGES TECHNOLOGY ORACLE A REDWOOD SHORES CALIF SOFTWARE COMPANY AND U S WEST A DENVERBASED TELEPHONE HOLDING COMPANY WOULD ONLY SAY THEY WOULD MAKE A SIGNIFICANT ANNOUNCEMENT TODAY 9305110111 930511 WHO'S NEWS MARQUEST TAPS BRANDS OF SCHERER HEALTHCARE FOR CHAIRMAN'S POST ENGLEWOOD COLO MARQUEST MEDICAL PRODUCTS INC NAMED JAMES E BRANDS CURRENTLY VICE CHAIRMAN OF SCHERER HEALTHCARE INC TO BE CHAIRMAN FURTHER SOLIDIFYING SCHERER'S CONTROL OF THE STRUGGLING COMPANY MARQUEST A MAKER OF DISPOSABLE RESPIRATORY AND ANESTHESIA DEVICES HAS HAD LIQUIDITY PROBLEMS SINCE 1991 WHEN THE FDA SUSPENDED ITS PRODUCTION FOR THREE MONTHS FOR FAILING TO COMPLY WITH MANUFACTURING STANDARDS SCHERER BASED IN ATLANTA IS A HEALTH CARE AND PHARMACEUTICAL SERVICES SUPPLIER MARQUEST ALSO NAMED CHARLES M OBERMEYER CURRENTLY CHIEF OPERATING OFFICER TO THE POST OF PRESIDENT MR OBERMEYER 51 YEARS OLD SUCCEEDS C RICHARD PIAZZA 45 WHO THE COMPANY SAID RESIGNED TO PURSUE OTHER BUSINESS OPPORTUNITIES MR OBERMEYER WAS ALSO ELECTED A DIRECTOR AND WILL BE THE TOP OFFICER RUNNING THE COMPANY SINCE MARQUEST DOES NOT HAVE A CHIEF EXECUTIVE OFFICER MR BRANDS 55 SUCCEEDS KENNETH N LARSEN 67 WHOSE RESIGNATION LAST MONTH WAS DISCLOSED ONLY IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR OBERMEYER SAID MR BRANDS WILL RETAIN HIS POSITION AT SCHERER MR LARSEN A PHARMACEUTICALS EXECUTIVE WHOSE EXPERTISE IN DEALING WITH THE FOOD AND DRUG ADMINISTRATION WAS HELPFUL TO MARQUEST AT A TIME OF FDA SCRUTINY HAD INTENDED TO STEP DOWN TO TEND TO HIS OTHER BUSINESS INTERESTS A COMPANY SPOKESWOMAN SAID HE WAS ELECTED CHAIRMAN IN AUGUST 1991 SCHERER AGREED IN JANUARY TO PROVIDE A CAPITAL INFUSION OF AS MUCH AS 107 MILLION IN RETURN SCHERER WILL RECEIVE MARQUEST'S BLOOD GAS ANALYZER PRODUCT LINE WHICH WILL BE LICENSED BACK TO MARQUEST THE RIGHTS TO ACQUIRE UP TO 65 OF MARQUEST'S STOCK AND A MAJORITY OF SEATS ON THE BOARD OF DIRECTORS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MARQUEST CLOSED AT 1625 UNCHANGED AND SCHERER CLOSED AT 2050 UNCHANGED 9305110110 930511 OLSTEN CORP TO ACQUIRE LIFETIME CORP OUTFLANKING ABBEY HEALTHCARE GROUP BY DAVE KANSAS AND DAVID STIPP STAFF REPORTERS OF THE WALL STREET JOURNAL OLSTEN CORP SAID IT REACHED AN AGREEMENT TO ACQUIRE LIFETIME CORP FOR ABOUT 448 MILLION IN STOCK OUTFLANKING AN AGGRESSIVE CAMPAIGN BY ABBEY HEALTHCARE GROUP OLSTEN WESTBURY NY OFFERED 33 OF ITS STOCK FOR EACH LIFETIME SHARE THE COMBINATION OF THE TWO TEMPORARY HELP AND HEALTH SERVICES COMPANIES WOULD HAVE SALES OF MORE THAN 2 BILLION IN 1993 ABBEY HEALTHCARE COSTA MESA CALIF HAD OFFERED 2350 AND 2750 A SHARE EARLIER THIS YEAR FOR LIFETIME BEFORE WITHDRAWING FROM THE BIDDING PROCESS IN EARLY APRIL BUT ABBEY MAINTAINED INTEREST IN THE BOSTON COMPANY RECENTLY THREATENING A PROXY FIGHT FOR A DIRECTOR'S SEAT AND PROPOSING ANOTHER OFFER ABOUT ONE WEEK AGO OLSTEN CHAIRMAN AND CHIEF EXECUTIVE FRANK N LIGOURI SAID WE GOT INTERESTED A FEW WEEKS AGO AND BEGAN TALKING TO THEM HE SAID ONCE WE KNEW THE COMPANY WAS OFFICIALLY AVAILABLE WE MOVED WITH ALACRITY WE LOOKED AT THEIR BUSINESS AND WE LOOKED AT OURS AND SAW A VERY GOOD FIT ABBEY CHAIRMAN TIMOTHY AITKEN SAID WE'RE OBVIOUSLY DISAPPOINTED THAT LIFETIME DIDN'T THINK THE THING THROUGH HE SAID ABBEY'S LATEST BID HAD VALUED LIFETIME AT 33 A SHARE THE SAME AMOUNT AS THE OLSTEN OFFER BUT WAS SUPERIOR BECAUSE ABBEY OFFERED TO PAY 50 IN CASH AND ITS STOCK IS LESS RISKY THAN OLSTEN'S A DIRECT COMPARISON OF THE TWO OFFERS IS COMPLICATED HOWEVER BECAUSE ABBEY'S OFFER WAS TECHNICALLY ONLY FOR KIMBERLY QUALITY CARE THE NURSING AGENCY BUSINESS THAT ACCOUNTS FOR THE BULK OF LIFETIME'S OPERATIONS MR AITKEN SAYS HE UNDERSTOOD THAT LIFETIME WANTED TO RETAIN THE OTHER OPERATIONS HE SAID ABBEY MADE AN OFFER A WEEK AGO TO THE BOARD OF LIFETIME PLACING A VALUE OF 25 A SHARE ON KIMBERLY QUALITY CARE AND VALUED THE OTHER OPERATIONS AT 8 TO 10 A SHARE THE HOME HEALTHCARE CONCERN WAS PREPARED TO MAKE AN OFFER FOR THE WHOLE COMPANY BUT WAS DISCOURAGED FROM DOING SO MR AITKEN SAID THE PACT BETWEEN OLSTEN AND LIFETIME INCLUDES A LOCKUP AGREEMENT DESIGNED TO MAKE ANOTHER BID UNECONOMICAL ALTHOUGH TERMS WEREN'T DISCLOSED IF OLSTEN'S STOCK OFFER WHICH IT SAYS IS ANTIDILUTIVE SUCCEEDS THE COMBINED COMPANIES WOULD CONTROL ABOUT 10 OF THE 13 BILLION TO 15 BILLION HOME HEALTHCARE MARKET INVESTORS RESPONDED TO THE AGREEMENT BY PUSHING LIFETIME SHARES UP 2875 TO 2975 OLSTEN'S SHARES HOWEVER FELL 125 CENTS IN AMERICAN STOCK EXCHANGE TRADING CLOSING AT 27 A SHARE THE STOCK EXCHANGE TERMS COULD BE ADJUSTED UNDER CERTAIN CONDITIONS IF OLSTEN STOCK PRICE FLUCTUATES FROM FRIDAY'S CLOSE OF 27125 OLSTEN'S OFFER IS A PRETTY GOOD DEAL FOR LIFETIME SAID ROBERT MAINS AN ANALYST WITH FIRST ALBANY CORP WHO HAD RECENTLY ESTIMATED LIFETIME'S VALUE AT ABOUT 30 A SHARE OLSTEN WILL ASSUME ABOUT 150 MILLION IN DEBT AS PART OF THE AGREEMENT HOME HEALTHCARE FIRMS PROVIDE NURSING AND OTHER ASSISTANCE TO PATIENTS IN THEIR HOMES SOME HEALTHCARE OBSERVERS SEE HOME CARE AS A LESS EXPENSIVE ALTERNATIVE TO HOSPITAL CARE MR MAINS SAID THAT IN THE HEALTH CARE MARKETPLACE THERE ARE ADVANTAGES TO BEING LARGE IN TERMS OF SERVICE AREA SUCH AS LETTING INSURERS NEGOTIATE ON A NATIONAL BASIS ANTHONY REEVES CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LIFETIME WILL STEP DOWN IF THE ACQUISITION IS COMPLETED AS EXPECTED BY AUG 31 HE AND ANOTHER LIFETIME OFFICER WILL JOIN THE OLSTEN BOARD AT LEAST UNTIL THE COMPANY'S NEXT ANNUAL MEETING IN APRIL LIFETIME'S KIMBERLY QUALITY CARE WILL CONTINUE TO OPERATE INDEPENDENTLY FOR SOME TIME MR LIGUORI SAID OVER TIME WE WILL EXPLORE HOW BEST TO COMBINE OPERATIONS AND PROVIDE FOR THE BEST OPERATING METHODS MR LIGOURI ADDED THAT LIFETIME'S TEMPORARY PERSONNEL BUSINESS IN THE UNITED KINGDOM WHICH GENERATES 83 MILLION IN REVENUE WOULD PROVIDE OLSTEN WITH A LONGSOUGHT ENTRY IN THE EUROPEAN MARKET THE PROPOSED PURCHASE IS SUBJECT TO APPROVAL BY SHAREHOLDERS OF BOTH COMPANIES AND REGULATORY AGENCIES THE FIRMS SAID RHONDA L RUNDLE IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9305110109 930511 NORWAY CONSUMER PRICES UP OSLO THE CONSUMER PRICE INDEX ROSE 26 DURING THE 12 MONTHS ENDED APRIL 15 COMPARED WITH A RATE OF 24 FOR THE PRIOR 12 MONTHS THE STATE CENTRAL BUREAU OF STATISTICS SAID THE INDEX ROSE 02 DURING THE MONTH ENDED APRIL 15 SLOWING FROM A 09 PACE THE PREVIOUS MONTH THE GREATEST PRICE INCREASE FROM MARCH TO APRIL WAS A 12 RISE IN THE COST OF CLOTHING AND SHOES 9305110108 930511 NOBLE AFFILIATES REDEMPTION ARDMORE OKLA NOBLE AFFILIATES INC SAID THE MAJORITY OF ITS 7 1/4 CONVERTIBLE DEBENTURE HOLDERS ELECTED TO RECEIVE COMMON STOCK AFTER THE COMPANY CALLED FOR REDEMPTION OUT OF 100 MILLION AGGREGATE PRINCIPAL AMOUNT ABOUT 978 MILLION OF THE DEBENTURES WERE CONVERTED AT 19625 A SHARE NOBLE AN ENERGY COMPANY SAID IT WILL ISSUE FIVE MILLION NEW COMMON SHARES CURRENTLY NOBLE HAS ABOUT 447 MILLION COMMON SHARES OUTSTANDING IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY NOBLE SHARES FELL 375 CENTS TO 2175 9305110107 930511 WHO'S NEWS JOHNSON & HIGGINS PICKS NIELSEN NEW YORK JOHNSON & HIGGINS INTERNATIONAL INSURANCE BROKER NAMED RICHARD A NIELSEN PRESIDENT AND CHIEF OPERATING OFFICER AS PRESIDENT HE SUCCEEDS DAVID A OLSEN WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR OLSEN HAD HELD THE TITLE OF PRESIDENT SINCE 1987 AND WAS ACTING AS CHIEF OPERATING OFFICER MR NIELSEN 55 YEARS OLD WHO JOINED JOHNSON & HIGGINS IN 1965 CONTINUES AS HEAD OF THE FIRM'S US RETAIL OPERATIONS A POSITION HE ASSUMED IN 1990 MR OLSEN 55 SAID HE EXPECTS TO DEVOTE MORE TIME TO CORPORATE PLANNING ACTIVITIES QUALITY ISSUES AND EXPANDING INTERNATIONAL ACTIVITIES JOHNSON & HIGGINS HAS 70 OFFICES IN THE US AND CANADA AND 50 OFFICES OVERSEAS AS WELL AS EXCLUSIVE RELATIONSHIPS WITH PARTNERS IN MORE THAN 135 OTHER CITIES 9305110106 930511 LETTERS TO THE EDITOR MIND YOUR MANNERS PLEASE I WAS GLAD TO SEE THE JOURNAL TAKES SERIOUSLY THE APPALLING DETERIORATION OF MANNERS AND CIVILITY IN THIS COUNTRY BY PUBLISHING MRS NOT MS LINDA LICHTER'S CHIVALRY WENT DOWN WITH THE TITANIC EDITORIAL PAGE APRIL 21 THE US SEEMS LIKE A DIFFERENT COUNTRY FROM THE ONE I KNEW AS A PREP SCHOOL STUDENT IN A NEW ENGLAND TOWN WHERE I WAS SENT BY MY PARENTS FROM VENEZUELA IN THE 1950S NOW IN THE '90S I FEEL THAT WE IN THE MEDIA CARRY A HEAVY SHARE OF RESPONSIBILITY FOR THE DETERIORATION OF CUSTOMS AND MORES SINCE IT IS NOT PC TO LEARN FROM OUR BETTERS THE YOUTH TAKE ON THE LANGUAGE AND HABITS THEY SEE ON TV AND IN THE MOVIES IT IS SO BAD THAT OTHER THAN NEWS I ONLY WATCH BRITISH PROGRAMS ON TV AND FOREIGN MOVIES ARE THE ONLY ONES I FIND ATTRACTIVE ENOUGH TO GO OUT FOR MRS LICHTER'S ESSAY LEFT ME WITH THE IMPRESSION THAT IF ONLY MEN WOULD GET SOME MANNERS AND LEARN TO RESPECT WOMEN THE WORLD WOULD BE A MUCH BETTER PLACE ALTHOUGH THE WORLD WOULD BE BETTER IF MORE EMPHASIS WERE PLACED ON MANNERS AND RESPECT THE ONUS SHOULD NOT BE SOLELY GIVEN TO MEN REGARDLESS OF GENDER RACE AGE ETHNIC BACKGROUND RELIGION OR SOCIOECONOMIC STATUS WE SHOULD ALL GET SOME MANNERS TREAT OTHERS WITH RESPECT HOLD THE DOOR OPEN FOR SOMEONE LET A DRIVER MERGE BETWEEN YOU AND THE VEHICLE AHEAD OF YOU SAY PLEASE AND THANK YOU OFFER AN I'M SORRY OR IT WAS MY DECISION I'LL TAKE THE RESPONSIBILITY I BELIEVE MRS LICHTER REALLY IS ONE STEP BELOW THE ANGELS BECAUSE HER HEAD IS IN THE CLOUDS INSTEAD OF SUGGESTING THAT MEN RELEARN RESPECT FOR WOMEN AND THE SELF RESTRAINT SHE SHOULD PONDER THE SOCIETAL BEHAVIORS OF WOMEN HOW DOES SHE EXPECT CHIVALRY TO BE RESURRECTED IN A SOCIETY WHERE INCREASING NUMBERS OF WOMEN DRESS IN LYCRA OUTFITS THAT STIMULATE MEN'S SEXUAL DRIVE SHE NEVER SUGGESTS THAT PURITANIC SELFRESTRAINT WAS DESIGNED TO SHIELD WOMEN FROM THEIR OWN INNER DESIRES I VENTURE TO GUESS THAT THERE ARE MANY WOMEN AS WELL AS MEN THAT WELCOME SELFRESTRAINT I SUGGEST THAT IF MORE WOMEN FOLLOWED THE HABITS OF VICTORIAN HABIT MEN WOULDN'T BE SO UNCIVILIZED I APPLAUD MRS LICHTER'S WILLINGNESS TO GO BEYOND FEMINIST STEREOTYPING THE THOUGHT CAUSED ME TO RECALL AN IMPORTANT CONCEPT IN CARL JUNG'S PSYCHOLOGY THE IMPORTANCE FOR BOTH THE INDIVIDUAL AND SOCIETY OF BALANCING ANIMUS THE ACTIVE MALE FORCE WITH ANIMA THE RECEPTIVE FEMALE FORCE SIMILAR TO YIN AND YANG WITHIN OUR SYSTEMS OF LIVING COULD IT BE THAT SUCH A CHIVALROUS CUSTOM AS CIVILITY REQUIRES HELP TO INTEGRATE THESE TWO SIDES OF HUMAN NATURE IN SOCIETY MRS LICHTER'S PIECE IS A TRUE CLASSIC FROM THE CHRONICLE OF FEMALE DUPLICITY AFTER HER FOND REMEMBRANCE OF THE VICTORIAN ETIQUETTE THAT REQUIRED MEN TO REVERE WOMEN EG THE CHIVALROUS MALES WHO WENT DOWN WITH THE TITANIC SO WOMEN COULD USE THE LIFEBOATS SHE GLIBLY SUGGESTS THAT WOMEN DEMAND CIVILITY WITH THE SAME FERVOR WITH WHICH THEY DEMAND CIVIL RIGHTS ANYONE FOR A FEDERAL CIVILITY LAW IF YOU FAIL TO TIP YOUR HAT TO A WOMAN YOU GET THREE TO FIVE YEARS BUT IF YOUR OFFENSE IS MERELY TIPPING YOUR HAT WITH THE WRONG HAND YOU GET JUST ONE TO THREE SHE SUGGESTS THAT WOMEN PUT ONE FOOT BACK ON THE PEDESTAL WHILE KEEPING THE OTHER PLANTED IN THE EXECUTIVE SUITE THIS POSTURE MIGHT BE A TRIFLE UNLADYLIKE BUT IF WOMEN CAN BE GUARANTEED THAT THEY ALWAYS GET ON THE ELEVATOR BEFORE MEN IT COULD EXPEDITE THEIR ASCENT THROUGH THE GLASS CEILING THEIR MOTTO WILL BE EQUAL BUT SPECIAL IT'S ENOUGH TO MAKE ALL THOSE CHIVALROUS MALE TITANIC PASSENGERS SPIN IN THEIR WATERY GRAVES MRS LICHTER MAKES A VERY VALID POINT IN HER STATEMENT WE CANNOT RECAPTURE THE PAST ANY MORE THAN WE CAN ESCAPE IT AND YET ESCAPE IS WHAT AMERICAN SOCIETY HAS TRIED TO DO WITH FAST FOOD FAST CARS AND YES INDEED FAST WOMEN THE MYTH OF ESCAPE FROM FREEDOM IS PERPETUATED HOW SAD THE PROFESSIONAL YOUNG WOMEN OF TODAY DO INDEED NEED TO MAKE A STAND BY ASSERTING THEIR INTELLIGENCE INTEGRITY AND INTELLECT NOT THEIR ANATOMY MAYBE THEN A STAKE IN CHIVALRY CAN BE RESURRECTED MRS LICHTER JUST DOES NOT UNDERSTAND WHAT A GENTLEMAN IS GENTLEMEN DID NOT DISAPPEAR WITH THE TITANIC AND STILL SURROUND HER THOUGH SHE MAY NOT NOTICE A GENTLEMAN IS ONE WHO TREATS SUBORDINATES AND THOSE WHO ARE ECONOMICALLY DEPENDENT ON HIM WITH FASTIDIOUS COURTESY HE IS NEVER RUDE TO PEOPLE WHO CAN'T FIGHT BACK WHEN THE TITANIC SANK WOMEN WERE ALMOST TOTALLY DEPENDENT ON THEIR MEN FOLK FORTUNATELY THEY ARE MUCH LESS SO TODAY SO GENTLEMEN ARE INCLINED TO TREAT WOMEN MORE AS EQUALS THAN AS SUBORDINATES AND THEREBY HANDLE THEM MORE ROUGHLY THAN BEFORE STILL MRS LICHTER SHOULD KNOW THAT EVEN NOW GENTLEMEN TREAT WOMEN WITH MORE COURTESY THAN THEY DO EACH OTHER 9305110105 930511 COMAIR'S APRIL BOARDINGS ROSE REVENUE PASSENGER MILES A MEASURE OF ONE PASSENGER FLYING ONE MILE ROSE 26 TO 50 MILLION WHILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEAT MILES SOLD TO PAYING PASSENGERS WAS 486 UP FROM 424 A YEAR AGO 9305110104 930511 LETTERS TO THE EDITOR PRICEFIX CONSPIRACY IS WHAT'S TRULY CRASS AS LIAISON COUNSEL AND SPOKESPERSON FOR PLAINTIFFS WHO OBTAINED A COURT SETTLEMENT IN THE CASE OF IN RE DOMESTIC AIR TRANSPORTATION ANTITRUST LITIGATION I AM WRITING ABOUT YOUR APRIL 1 EDITORIAL CRASS ACTION YOU VEHEMENTLY ATTACKED THE SETTLEMENT IN THE CLASS ACTION SUIT AGAINST THE AIRLINES AS LITIGATION GINNED UP SOLELY FOR THE BENEFIT OF LAWYERS BUT IN FACT MILLIONS OF TRAVEL CONSUMERS ARE BENEFITING FROM THIS SETTLEMENT HERE IS HOW FIRST BECAUSE OF THE LAWSUIT 12 MILLION PURCHASERS OF AIRLINE TICKETS NOW HAVE THE RIGHT TO RECOVER MILLIONS OF DOLLARS THEY WERE OVERCHARGED AND CONTRARY TO THE INFORMATION IN YOUR EDITORIAL MANY OF THESE CONSUMERS ARE IN FACT PLANNING TO FILE CLAIMS FOR DISCOUNTS ON AIRLINE FLIGHTS NEARLY THREE MILLION HAVE CURRENTLY FILED CLAIMS YOUR OWN NEWSPAPER REPORTED ON MARCH 30 THAT A HIGHER THAN EXPECTED NUMBER OF CORPORATIONS AS WELL AS LEISURE TRAVELERS WILL BE FILING CLAIMS THIS DOES NOT SOUND LIKE ENORMOUS RIGAMAROLE IS KEEPING CONSUMERS FROM FILING CLAIMS AS YOUR EDITORIAL STATED IN FACT TO FILE FORM A THE CLAIMANT NEED ONLY PROVIDE AN ADDRESS SOCIAL SECURITY NUMBER AND SIGNATURE YOU ALSO INCORRECTLY STATED THAT THE SETTLEMENT CLAIMS COUPONS ARE GOOD ONLY FOR OFFPEAK TRAVEL AND NOT THROUGH TRAVEL AGENTS NOT TRUE THE COUPONS CAN BE USED AS CREDIT AGAINST THE PRICE OF ANY PUBLISHED ROUND TRIP OR BACK TO BACK ONEWAY FARES OVER 50 100 FOR NORTHWEST AIRLINES EXCEPT FOR CERTAIN BLACKOUT PERIODS AROUND THANKSGIVING CHRISTMAS AND NEW YEAR'S THEY ARE GOOD 97 OF THE TIME ALSO THE COUPONS CAN BE REDEEMED THROUGH TRAVEL AGENTS AFTER ANNOUNCEMENT OF THE SETTLEMENT THE JUSTICE DEPARTMENT INSTITUTED AN ACTION FOR INJUNCTIVE RELIEF COMPLAINING OF THE SAME ACTIVITIES COVERED IN THIS CASE A NUMBER OF THE AIRLINES HAVE ALREADY ENTERED CONSENT ORDERS IN THAT CASE THIRTYTHREE LAW FIRMS SPENT THREE YEARS UNCOVERING THE AIRLINES' CONSPIRACY TO FIX PRICES WE ARE PROUD OF OUR WORK WHICH WILL BRING ABOUT STRONGER ANTITRUST ENFORCEMENT HEALTHIER AIRLINE COMPETITION AND LOWER FARES FOR AMERICAN CONSUMERS IF NOT FOR ACTIONS OF THIS TYPE AND THE COURAGE AND TENACITY OF JUDGES SUCH AS THE HONORABLE MARVIN H SHOOB IN THIS CASE THERE WOULD BE VIRTUALLY NO ENFORCEMENT OF THE ANTITRUST LAWS 9305110103 930511 BELLSOUTH GTE UNIT OF SPRINT JOIN TO BUILD INFORMATION HIGHWAY ATLANTA BELLSOUTH CORP GTE CORP AND CAROLINA TELEPHONE CO ARE TEAMING UP TO BUILD AN INFORMATION HIGHWAY FOR NORTH CAROLINA THAT USES THE NEWEST GENERATION OF HIGHSPEED TELEPHONE SWITCHES THE STATE OF NORTH CAROLINA WILL BE THE INITIAL CUSTOMER AND THE COMPANIES EXPECT TO ADD BUSINESS CUSTOMERS QUICKLY THE NETWORK BASED ON ASYNCHRONOUS TRANSFER MODE OR ATM SWITCHES IS EXPECTED TO DELIVER ADVANCED SERVICES TO GOVERNMENT OFFICES SCHOOLS AND HOSPITALS THE SERVICES INCLUDE MEDICAL IMAGING AND REMOTE DIAGNOSTICS AND VIDEO CONFERENCING THAT WILL ENABLE STUDENTS IN THE STATE'S RURAL SCHOOLS TO TAKE COURSES THAT COULDN'T BE OFFERED PREVIOUSLY INITIALLY BELLSOUTH WILL INSTALL FIVE ATM SWITCHES WHILE GTE CORP IN STAMFORD CONN AND CAROLINA TELEPHONE PLAN TO INSTALL TWO APIECE THE NEW SWITCHES WHICH TRANSFER DATA GRAPHICS AND VIDEO AT RATES MANY TIMES FASTER THAN TODAY'S SWITCHES ARE EXPECTED TO BE IN OPERATION NEXT YEAR THIS IS NOT A TRIAL OR A PILOT PROGRAM SAID F DUANE AKERMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE BELLSOUTH TELECOMMUNICATIONS UNIT THE NEW ATM SWITCHES HE SAID WERE JUST A GLEAM IN THE INDUSTRY'S EYE A COUPLE OF YEARS AGO AND NOW ATM NETWORKS ARE COMING TO FRUITION EARLIER THIS YEAR BELLSOUTH THE REGIONAL BELL TELEPHONE COMPANY IN ATLANTA ANNOUNCED THAT IT PLANNED TO INSTALL ATM SWITCHES THROUGHOUT ITS NINESTATE NETWORK OVER THE NEXT SEVERAL YEARS CAROLINA TELEPHONE AN INDEPENDENT PHONE COMPANY IS A WHOLLY OWNED UNIT OF SPRINT CORP WESTWOOD KAN 9305110102 930511 PRUDENTIAL TO SELL 35 ENERGY PARTNERSHIPS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC IS ON THE VERGE OF CLOSING A CHAPTER IN ITS COSTLY FORAY INTO OIL AND GAS PARTNERSHIPS THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT AGREED TO SELL 35 TROUBLED OIL AND GAS PARTNERSHIPS TO PARKER & PARSLEY PETROLEUM CO FOR 557 MILLION OF THAT AMOUNT PARKER & PARSLEY A MIDLAND TEXAS INDEPENDENT OIL AND GAS COMPANY SAID IT WILL OFFER CASH OF 4483 MILLION TO THE MORE THAN 120000 INVESTORS WHO BOUGHT INTERESTS IN THE ENERGYINCOME PARTNERSHIPS SPONSORED BY PRUDENTIAL IF ACCEPTED BY THE PARTNERSHIPS PARKER & PARSLEY'S CASH TENDER WOULD MEAN THAT INVESTORS IN PRUDENTIAL'S ENERGY INCOME PARTNERSHIPS WOULD EFFECTIVELY RECEIVE 76 CENTS ON THE DOLLAR FOR THEIR ORIGINAL 145 BILLION INVESTMENT THAT INCLUDES ABOUT 655 MILLION THAT PRUDENTIAL SECURITIES ALREADY HAS PAID OUT IN DISTRIBUTIONS TO THE ENERGY PARTNERSHIP INVESTORS THE CASH TENDER WOULD BRING THE AMOUNT PAID OUT TO ABOUT 11 BILLION PRUDENTIAL SECURITIES WAS ONE OF THE BIGGEST SELLERS OF LIMITED PARTNERSHIPS IN THE 1980S MANY OF THE PARTNERSHIPS SOLD BY WALL STREET FIRMS HAVE SOURED AND TRIGGERED LAWSUITS BY INVESTORS THE PARTNERSHIP INVESTMENTS WERE HURT BY TAXLAW CHANGES AND A SLUMP IN THE ENERGY INDUSTRY AMONG OTHER PROBLEMS PARKER & PARSLEY'S BID TOPPED SEVERAL RIVAL OFFERS FOR THE PARTNERSHIP ASSETS AMONG THEM A 500 MILLION OFFER BY TORCHMARK CORP BIRMINGHAM ALA AND A REVISED 283 MILLION OFFER BY GBK ACQUISITION CORP TULSA OKLA TORCHMARK SAID IT WOULDN'T RAISE ITS OFFER AND WILL BACK OUT OF THE BIDDING GBK DECLINED TO COMMENT BUT THE PROPOSED SALE WHICH COULD BE COMPLETED AS EARLY AS AUGUST STILL LEAVES PRUDENTIAL SECURITIES WITH SIGNIFICANT PARTNERSHIP HEADACHES PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM FACES INVESTIGATIONS BY THE SECURITIES AND EXCHANGE COMMISSION AND STATE SECURITIES REGULATORS INTO WHETHER THE FIRM IMPROPERLY SOLD THE PARTNERSHIPS PEOPLE FAMILIAR WITH THE INQUIRIES SAID MOREOVER THE SALE AGREEMENT DOESN'T AFFECT A CLASSACTION LAWSUIT AGAINST PRUDENTIAL FILED IN A NEW ORLEANS FEDERAL COURT ON BEHALF OF THE 120000 ENERGYINCOME PARTNERSHIP INVESTORS THE SUIT SAYS THE INVESTORS LOST ABOUT HALF OF THE 14 BILLION THEY PUT INTO ENERGY PARTNERSHIPS SOLD BY THE FIRM THEN KNOWN AS PRUDENTIALBACHE SECURITIES INC BETWEEN 1983 AND 1990 LATE LAST YEAR PRUDENTIAL SECURITIES OFFERED INVESTORS A SETTLEMENT THAT INCLUDED ABOUT 37 MILLION IN CASH PAYMENTS AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM BUT A FEDERAL JUDGE IN THE CASE SAID IN FEBRUARY THAT HE HAD SERIOUS RESERVATIONS ABOUT THE FAIRNESS OF THE SETTLEMENT NOW PRUDENTIAL SECURITIES WILL WITHDRAW THE SETTLEMENT OFFER AND SUBMIT A REVISED PROPOSAL WHICH PROBABLY WOULD INCLUDE MORE CASH FOR INVESTORS PEOPLE FAMILIAR WITH THE MATTER SAID A PRUDENTIAL SECURITIES SPOKESMAN WOULD ONLY SAY WE WILL BE RECONSIDERING THE TERMS OF THE SETTLEMENT AND WOULD BE IN DISCUSSIONS WITH PLAINTIFFS' ATTORNEYS ON THAT IN THE NEAR FUTURE WHILE THE SALE AGREEMENT IS GOOD NEWS FOR INVESTORS IT STILL DOESN'T ADEQUATELY COMPENSATE PEOPLE FOR THEIR LOSS SAYS ROBERT H REX OF DICKENSON MURDOCH REX & SLOAN A BOCA RATON FLA LAW FIRM THAT REPRESENTS ENERGYPARTNERSHIP INVESTORS WITH CLAIMS AGAINST PRUDENTIAL THAT'S BECAUSE EVEN IF INVESTORS RECEIVED ALL THE MONEY THEY PUT INTO THE PARTNERSHIPS THEY STILL LOST THE INTEREST THEY WOULD HAVE EARNED DURING THE TIME THEY OWNED THE PARTNERSHIPS MR REX SAYS NEVERTHELESS THE DEAL IS BENEFICIAL FOR INVESTORS WHO WANT SOME OF THEIR MONEY SOON SOME LAWYERS SAID IT'S FAR AND AWAY THE BEST DEAL I'VE SEEN COME DOWN AND DESERVES VERY SERIOUS CONSIDERATION BY INVESTORS SAYS J BOYD PAGE OF PAGE & BACEK AN ATLANTA LAW FIRM THAT REPRESENTS PLAINTIFFS SUING PRUDENTIAL OVER THE PARTNERSHIPS IT GIVES THEM BACK PART OF THEIR MONEY AND ALLOWS THEM TO STILL PROCEED WITH THEIR LEGAL CLAIMS MR PAGE SAYS THE BIG CHALLENGE IS FOR PRU NOW TO IMPROVE ITS SETTLEMENT IN THE BIG CLASSACTION CASE SAYS CLINTON A KRISLOV OF KRISLOV & ASSOCIATES A CHICAGO LAW FIRM THAT ALSO IS REPRESENTING CLIENTS WITH CLAIMS AGAINST PRUDENTIAL THE 35 ENERGYINCOME PARTNERSHIPS INVESTED IN OIL AND GAS PROPERTIES WHICH INCLUDE INTERESTS IN ABOUT 12000 OIL WELLS IN 22 STATES AS PART OF THE TENDER PARKER & PARSLEY ALSO WILL BUY THE INTERESTS OF GENERAL PARTNERS PRUDENTIALBACHE ENERGY PRODUCTION INC AND GRAHAM ROYALTY LTD OF COVINGTON LA HOWEVER PARKER & PARSLEY WON'T BE ASSUMING PRUDENTIAL'S EXPOSURE TO LITIGATION CLAIMS INVOLVING THE PARTNERSHIPS PEOPLE FAMILIAR WITH THE MATTER SAID THE PARKER & PARSLEY BID STEMMED FROM A COMPETITIVE AUCTION CONDUCTED BY MERRILL LYNCH & CO PRUDENTIAL'S FINANCIAL ADVISER THE PROCESS WAS TRIGGERED BY AN UNSOLICITED OFFER FOR 30 OF THE PARTNERSHIPS BY GBK ACQUISITION AS OF MAY 4 LESS THAN 1 OF THE PARTNERSHIP INVESTORS HAD RESPONDED FAVORABLY TO GBK'S AMENDED OFFER PRUDENTIAL SAID PARKER & PARSLEY SAID IT WILL BEGIN ITS TENDER OFFER WITHIN FIVE BUSINESS DAYS THE ENTIRE PURCHASE PRICE WILL BE FINANCED THROUGH BANK CREDIT LINES SAYS HERBERT C WILLIAMSON III PARKER & PARSLEY'S VICE CHAIRMAN THE TENDER OFFER WHICH REQUIRES THE APPROVAL OF A MAJORITY OF LIMITEDPARTNER INTERESTS IN EACH OF THE 35 PARTNERSHIPS IS EXPECTED TO BE CLOSED IN JUNE OR EARLY JULY THE DIFFERENCE BETWEEN THE 557 MILLION PARKER & PARSLEY WILL PAY FOR THE PARTNERSHIPS AND THE 4483 MILLION INVESTORS WILL GET REFLECTS PARTNERSHIP DISTRIBUTIONS OF 40 MILLION THIS YEAR EXPENSES AND THE ASSUMPTION OF 22 MILLION IN BANK DEBT ON A PER UNIT BASIS THE OFFER RANGES BETWEEN 49 A UNIT TO 177 PER UNIT DEPENDING ON THE SPECIFIC PARTNERSHIP SAID MR WILLIAMSON FOLLOWING THE CLOSING OF THE TENDER OFFER EACH PARTNERSHIP WILL BE MERGED INTO PARKER & PARSLEY HOLDERS OF ANY NONTENDERED LIMITED PARTNER INTERESTS IN A MERGED PARTNERSHIP WILL RECEIVE THE SAME CASH PRICE AS PAID IN THE TENDER THE MERGER WOULD INCREASE PARKER & PARSLEY'S PROVEN OIL AND GAS RESERVES BY 75 TO ABOUT 228 MILLION BARRELS OF OIL EQUIVALENT AFTER THE MERGER PRODUCTION IS EXPECTED TO MORE THAN DOUBLE NEXT YEAR SAID THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY THE PROPERTIES IN TEXAS LOUISIANA WYOMING AND NEW MEXICO HAVE ABOUT 2600 PRODUCING OIL AND GAS WELLS THE WELLS FIT WITHIN THE COMPANY'S EXISTING PRODUCTION BASE OF 4400 PRODUCING WELLS THAT THE CONCERN OPERATES SAID PARKER & PARSLEY ANN DE ROUFFIGNAC IN HOUSTON CONTRIBUTED TO THIS ARTICLE 9305110101 930511 PEPPERAND SALT PEOPLE SAY WITH A SELFSATISFIED MIEN I WONDER IF THE SPEAKER MIGHT ACTUALLY BE TALKING ABOUT WHAT OTHERS WOULD SIMPLY CALL WALKING CHEER UP WORKAHOLICS IT'S BETTER TO BE A BURNOUT THAN A WASHOUT 9305110099 930511 AUTOS GM PITCHING VALUE SCORES CAVALIER UPSET BY JOSEPH B WHITE AND OSCAR SURIS STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT THE BESTSELLING CAR IN AMERICA LAST MONTH WASN'T THE FORD TAURUS THE HONDA ACCORD OR ONE OF CHRYSLER'S NEW LH SEDANS INSTEAD IT WAS THE 12YEAROLD CHEVROLET CAVALIER FURTHER PROOF THAT IN THE FRUGAL '90S PRICE CUTS WORK AND VALUE SELLS PUSHED BY AN ADVERTISING CAMPAIGN THAT TRUMPETED PRICES AS LOW AS 7620 FOR A CAR WITH STANDARD ANTILOCK BRAKES BUT NO AIR BAG THE CAVALIER OUTSOLD THE FORD TAURUS LAST MONTH 29657 TO 29361 THE CAVALIER IS ABSOLUTELY PRICED PERFECTLY FOR THE SOCIOECONOMIC GROUP WE DEAL WITH HERE THE 22 TO 35YEAROLD AGE GROUP EARNING 24000 TO 36000 A YEAR SAYS RICHARD BURCH GENERAL MANAGER AT CAPITOL CHEVROLET/GEO NASHVILLE TENN THOSE DEMOGRAPHICS DESCRIBE A LARGE SLICE OF AMERICAN CONSUMERS BUT FOR YEARS GENERAL MOTORS CORP'S CHEVROLET DIVISION STRUGGLED TO WIN YOUNG CONSUMERS OVER FROM JAPANESE CARS AND FROM DOMESTIC RIVALS CHIEFLY THE FORD ESCORT FOR GM THE CAVALIER'S RECENT SURGE REPRESENTS A SMALL STEP FORWARD IN THE COMPANY'S EFFORT TO REGAIN SOME OF THE MARKET SHARE IT LOST IN THE 1980S COMPANY OFFICIALS AND ANALYSTS SAY THAT WHAT GM DID TO RESUSCITATE THE CAVALIER IS THE KIND OF THING IT MUST DO FOR OTHER DIVISIONS AND OTHER MODEL LINES TO REGAIN MOMENTUM AND RETURN ITS NORTH AMERICAN OPERATIONS TO PROFITABILITY GM'S STRATEGY FOR TRANSFORMING THE CAVALIER FROM AGING LIABILITY TO SALES LEADER HAD TWO MAJOR PARTS THE MOST IMPORTANT FOR CONSUMERS WAS A DECISION LAST YEAR BY CHEVROLET EXECUTIVES TO CUT THE STICKER PRICE OF THE LEASTEXPENSIVE 1993 CAVALIER THE VL MODEL TO 8520 FROM 8899 IN THE 1992 MODEL YEAR WITHOUT REMOVING ANY EQUIPMENT FROM THE CAR THAT'S SOMETHING RARELY DONE IN DETROIT AND IT WAS A HARD DECISION FOR GM AT A TIME WHEN THE COMPANY WAS GRAPPLING WITH A FINANCIAL CRISIS ANY TIME YOU TRY TO REDUCE PRICES IN A TOUGH ENVIRONMENT IT RAISES QUESTIONS SAYS JEFF HURLBERT CHEVROLET'S GENERAL MARKETING MANAGER BUT CHEVROLET PERSUADED GM'S SENIOR MANAGEMENT INCLUDING PRESIDENT JOHN F SMITH JR AND J MICHAEL LOSH VICE PRESIDENT FOR NORTH AMERICAN VEHICLE SALES AND MARKETING TO BUY THE IDEA IT MAY NOT HAVE BEEN AS EASY IN THE OLD GM MR HURLBERT SAYS THE NEW MANAGEMENT ACCEPTED IT READILY THE SECOND ELEMENT HAD TO DO WITH MANUFACTURING STRATEGY BY 1992 GM HAD CONSOLIDATED US PRODUCTION OF CAVALIERS TO ONE PLANT FROM TWO THAT PLANT IN LORDSTOWN OHIO BEGAN OPERATING LATE LAST YEAR ON A THREESHIFT PRODUCTION SCHEDULE THAT KEPT IT RUNNING FOR 120 HOURS A WEEK INSTEAD OF THE NORMAL 80 HOURS THE CHANGE SLASHED OVERHEAD EXPENSES PER CAR THAT MEANS CHEVROLET CAN SELL CAVALIERS WITH AIR CONDITIONING AND AUTOMATIC TRANSMISSION FOR LESS THAN 10000 AND STILL MAKE MONEY SAYS STEVE MCAVOY HEAD OF CHEVROLET'S PASSENGER CAR MARKETING THIS CAR ISN'T PLANNED TO BE A LOSS LEADER MR MCAVOY SAYS THE CAVALIER'S OBVIOUS LIABILITIES ALSO MADE IT A CANDIDATE FOR A MARKETING MAKEOVER DESPITE SOME IMPROVEMENTS THIS DECADEOLD DESIGN CAN NO LONGER COMPETE EXCEPT IN PRICE CONSUMER REPORTS SAID IN ITS APRIL REVIEW OF 1993 MODELS NEATLY SUMMING UP THE MODEL'S WEAK REPUTATION THOUGH THE CAVALIER COUPE'S EXTERIOR AND INTERIOR WERE SPRUCED UP IN 1988 CAVALIER SALES HAD BEEN IN A LONG SKID FROM THE 1985 PEAK OF 431031 CARS SALES FELL 18 IN 1992 TO 212374 CARS FROM 259385 A YEAR EARLIER IN PART THAT REFLECTED PRODUCTION LOST DURING A STRIKE AT THE LORDSTOWN PLANT BUT THE DROP WAS LARGELY A SYMPTOM OF SLOW DEMAND AFTER A STIFF PRICE INCREASE AT THE START OF THE 1992 MODEL YEAR EVEN AFTER THE 1993 MODEL STICKER PRICE CUT CHEVROLET FUMBLED UNTIL EARLY THIS YEAR THEN IT BEGAN OFFERING TO CUT AS MUCH AS 900 MORE OFF THE PRICE FOR FIRSTTIME CAR BUYERS ALLOWING DEALERS TO ADVERTISE A CAR FOR LESS THAN 8000 CHEVY ALSO WORKED WITH DEALERS TO BEGIN ADVERTISING THE CAR MORE AGGRESSIVELY ONE OF THE ADS SHOWS A CAVALIER COUPE WEAVING THROUGH A LINE OF PYLONS AS ENTICEMENTS TO CONSIDER THE CAR INCLUDING A THREEYEAR 36000MILE WARRANTY AND A 500 REBATE FLASH ON THE SCREEN THE CLINCHER LINE COMES AS THE CAR COMES TO A STOP THE LOWESTPRICED CAR IN AMERICA WITH ANTILOCK BRAKES FOR THE LATEST AD CAMPAIGN CHEVY ENLISTED DEALERS TO AUGMENT GM'S BUDGET WE LOOKED AT MARKETS WHERE DEALER GROUPS WOULD WORK WITH US SAYS MR HURLBERT OVERALL CHEVY BOOSTED AD SPENDING FOR CAVALIER JUST 5 TO 10 HE ADDS FOR NOW CHEVROLET'S ARCHRIVAL FORD IS TAKING A WAIT AND SEE ATTITUDE ABOUT THE CAVALIER A FORD SPOKESMAN SAID THE COMPANY IS CONFIDENT THE TAURUS WILL REMAIN THE NO 1SELLING CAR AND ADDED THAT THE CAVALIER COMPETES MORE DIRECTLY AGAINST ITS TEMPO COMPACT AND ESCORT SUBCOMPACT MODELS BOTH TEMPO AND ESCORT COME IN VALUE VERSIONS PRICED JUST UNDER 11000 INCLUDING FEATURES SUCH AS AM/FM STEREO AIR CONDITIONING AND AUTOMATIC TRANSMISSION FORD IS FOLLOWING CAVALIER'S PROGRESS BUT HAS NO IMMEDIATE PLANS TO REACT TO THE CAVALIER'S RECENT SALES PERFORMANCE THE SPOKESMAN SAID CHEVROLET OFFICIALS ARE CAREFUL NOT TO CROW TOO LOUDLY ABOUT THE SUCCESS OF THEIR CAVALIER VALUE STRATEGY SO FAR THE CAVALIER IS STILL MORE THAN 15000 CARS BEHIND THE TOPSELLING TAURUS FOR THE YEAR TO DATE WITH JUST ONE FACTORY TO SERVE THE US MARKET IT'S UNLIKELY CAVALIER WILL STAY AHEAD OF TAURUS FOR LONG CAVALIER INVENTORIES STOOD AT JUST 34 DAYS' SUPPLY AT THE END OF APRIL ACCORDING TO WARD'S AUTOMOTIVE REPORTS A 60 TO 65DAY SUPPLY IS CONSIDERED IDEAL I'M GOING TO RUN OUT OF THEM SAYS CINCINNATI CHEVROLET DEALER PAUL HEFLIN MOREOVER CHEVROLET WILL FACE A CHALLENGE IN THE FALL OF 1994 WHEN A REPLACEMENT FOR THE CAVALIER IS SCHEDULED TO START PRODUCTION GM EXECUTIVES SAY THE NEW CAR WILL HAVE LOWER ASSEMBLY COSTS BUT IT'S UNLIKELY GM WILL WANT TO PRICE AN ALLNEW MODEL AS CHEAPLY AS AN AGING WAR HORSE STILL THE CAVALIER'S SUCCESS COMING ON THE HEELS OF THE SUCCESS OF EVERYDAY LOW PRICING AT GM'S SATURN SUBSIDIARY APPEARS TO RAISE THE CHANCES THAT GM WILL BROADEN VALUE PRICING TO MANY MORE CAR LINES AS EARLY AS THIS FALL IT HAS TO MAKE SENSE FOR THE CUSTOMER MR LOSH SAID IN AN INTERVIEW LAST MONTH THEY TELL US IT DOES 9305110098 930511 WHO'S NEWS THOMSON CORP THOMSON CORP TORONTO THIS PUBLISHING AND TRAVEL CONCERN SAID MICHAEL W JOHNSTON HAS DECIDED TO RESIGN AS CHIEF EXECUTIVE OFFICER OF THE COMPANY'S THOMSON NEWSPAPERS DIVISION MR JOHNSTON HAS COME TO THE CONCLUSION THAT THERE IS MORE TO LIFE THAN RUNNING A NEWSPAPER OPERATION THOMSON CORP'S PRESIDENT W MICHAEL BROWN SAID IN A BRIEF NEWS RELEASE THE COMPANY SAID IT IS SEEKING A SUCCESSOR FOR MR JOHNSTON WHO HAS HELD THE POSITION SINCE 1989 HE WILL STAY ON AS A DIRECTOR OF AND CONSULTANT TO THOMSON COMPANY OFFICIALS COULDN'T BE REACHED FOR FURTHER COMMENT 9305110097 930511 INTERNATIONAL POLITICAL SCANDALS IN GERMANY ERODE PUBLIC CONFIDENCE IN ELECTED OFFICIALS BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN A SERIES OF SCANDALS IS UNDERMINING GERMANS' TRUST IN THEIR POLITICIANS AND PARTY LEADERS ARE SCRAMBLING TO CONTAIN THE DAMAGE ANGER AT RECENT REVELATIONS OF WRONGDOING ADDS TO DISENCHANTMENT WITH A POLITICAL ESTABLISHMENT THAT HAS PUZZLED OVER ISSUES RANGING FROM CHANGING ASYLUM LAWS TO PUTTING PUBLIC FINANCES IN ORDER THE RELATIONSHIP BETWEEN POLITICIANS AND THE PEOPLE HAS BEEN DEEPLY SHAKEN IN A WAY WE HAVEN'T SEEN IN A LONG TIME SAYS HANSJUERGEN HOFFMANN OF THE FORSA POLLING GROUP THE WEEKLY DIE WOCHE REPORTS THAT 22 LEGISLATIVE INVESTIGATIONS ARE UNDER WAY INTO SCANDALS AT THE STATE OR FEDERAL LEVEL LAST WEEK ALONE BJOERN ENGHOLM LEADER OF THE OPPOSITION SOCIAL DEMOCRATS AND TRANSPORTATION MINISTER GUENTHER KRAUSE WERE FORCED TO CALL IT QUITS PUBLICOPINION ANALYSTS SAY THE SCANDALS ARE PART OF A PROCESS OF POLITICAL HOUSECLEANING OCCURRING ACROSS WESTERN EUROPE WITH THE END OF THE COLD WAR THE DISAPPEARANCE OF THE ORIENTATION FROM THE EASTWEST CONFLICT HAS CERTAINLY LED TO AN EROSION OF THE BONDS BETWEEN VOTERS AND PARTIES SAYS MATTHIAS JUNG OF FORSCHUNGSGRUPPE WAHLEN A LEADING POLLING INSTITUTE BUT THIS HAS LED TO A DESIRE FOR MORE PARTICIPATION FROM THE ELECTORATE AND AT THE SAME TIME THE FEELING THAT THERE IS A LACK OF LEADERSHIP THESE SEEM TO BE INCOMPATIBLE BUT THAT'S THE WAY IT IS SOMEWHAT SCHIZOPHRENIC THE FACT THAT A NEW FOCUS FOR POLITICAL LIFE HASN'T APPEARED HAS WEAKENED CONFIDENCE IN THE COUNTRY'S POLITICAL LEADERSHIP MISDEEDS THAT EARLIER MIGHT HAVE BEEN OVERCOME BY STONEWALLING OR BRUSHED OFF WITH A QUICK APOLOGY ARE NOW CAUSE FOR RESIGNATION MR ENGHOLM RESIGNED AFTER ADMITTING THAT HE LIED DURING AN INVESTIGATION INTO A CORRUPTION SCANDAL AIMED AT HIS MAIN POLITICAL RIVAL IN THE LATE 1980S WHILE IT STILL ISN'T CLEAR WHY MR ENGHOLM LIED THE ADMITTED FALSEHOOD DESTROYED HIS IMAGE AS A RIGOROUSLY HONEST POLITICIAN MR KRAUSE ONE OF THE FEW WELLKNOWN EASTERN GERMANS LEFT IN NATIONAL POLITICS HAD BEEN DOGGED BY PETTY SCANDALS HIS UNDOING CAME WHEN A MAGAZINE REVEALED THAT HE HAD USED MINISTRY FUNDS TO PAY FOR A 1991 HOUSEHOLD MOVE FROM BERLIN TO A COUNTRY VILLAGE EARLIER THIS YEAR ECONOMICS MINISTER JUERGEN MOELLEMANN WAS DRIVEN FROM OFFICE FOR ENDORSING A SUPERMARKET GADGET INVENTED BY A RELATIVE AND MAX STREIBL PREMIER OF BAVARIA IS UNDER FIRE FOR ACCEPTING FREE VACATIONS FROM A GOVERNMENT CONTRACTOR THE RUSH TO DUMP SO MANY POLITICIANS ACCORDING TO ERWIN SCHEUCH A SOCIOLOGIST AT THE UNIVERSITY OF COLOGNE ALSO ALLOWS NERVOUS POLITICAL PARTIES TO UNLOAD UNWANTED PERSONALITIES BEFORE A STRING OF 20 FEDERAL STATE AND LOCAL ELECTIONS THAT RUNS FROM NEXT SEPTEMBER THROUGH THE END OF 1994 MR SCHEUCH ADDS THAT PUBLIC DISCONTENT HAS BEEN FANNED BY A GREATER SENSITIVITY CAUSED IN PART BY A GREATER READINESS ON THE PART OF THE MEDIA TO INVESTIGATE INDEED POLITICIANS COMPLAIN BITTERLY ABOUT THE NEW AGGRESSIVENESS OF GERMAN JOURNALISTS IN RECENT MONTHS FOR EXAMPLE GERMANY'S TABLOID PRESS HAS STARTED EXAMINING THE MARRIAGES OF POLITICIANS A TOPIC PREVIOUSLY OFF LIMITS THE ISSUE OF PRESS INTRUSIVENESS WAS RAISED AT A WEEKEND MEETING OF TOP POLITICIANS FROM THE MAJOR PARTIES CONVENED BY CHANCELLOR HELMUT KOHL WHO AIDES SAY IS CONVINCED THAT THE PRESS IS PARTLY RESPONSIBLE FOR THE LOW REGARD IN WHICH POLITICIANS ARE HELD AS A RESULT BONN'S JUSTICE MINISTRY WILL REVIEW WHETHER LEGAL DAMAGES SHOULD BE INSTITUTED IN CASES WHERE POLITICIANS' PRIVACY WAS UNNECESSARILY INVADED ONE WELLPLACED BONN OFFICIAL SAYS THE CHANCELLOR DOESN'T INTEND TO TIGHTEN THE LEASH ON JOURNALISTS NOW BUT IN THE LONG RUN HE SAYS I DON'T RULE OUT THE POSSIBILITY OF SOME CHANGES OTHER EFFORTS TO POLISH THE REPUTATION OF THE POLITICAL ESTABLISHMENT RUN MORE TOWARD DRAWING VOTERS INTO GREATER INVOLVEMENT IN THE PARTIES AMONG SOCIAL DEMOCRATS IN PARTICULAR THE NOTION OF HOLDING A KIND OF PRIMARY A PRACTICE FOREIGN TO GERMANY'S POLITICAL TRADITION IN WHICH PARTY MEMBERS WOULD CHOOSE A LEADER TO REPLACE MR ENGHOLM SEEMS TO BE GAINING SUPPORT THAT MAY EXCITE SOME INTEREST AND EVEN PROVIDE A CHALLENGER TO THE CHRISTIAN DEMOCRATS WITH BROADER SUPPORT THAN IN THE PAST THREE GENERAL ELECTIONS EACH OF WHICH SAW MR KOHL THRASH THE SOCIAL DEMOCRATS BUT IT WILL PROBABLY TAKE MUCH MORE THAN THAT TO RESUSCITATE A PARTY ALREADY IN DISARRAY BEFORE MR ENGHOLM'S RESIGNATION FOR EVEN THOUGH MR KOHL'S STANDING HAS PLUNGED WITH THE REST OF THE POLITICAL CLASS HIS PROSPECTS FOR WINNING REELECTION NEXT YEAR WERE GREATLY STRENGTHENED BY MR ENGHOLM'S RESIGNATION AT A MOMENT WHEN THE GOVERNMENT IS IN THE WORST POSSIBLE POSITION THE OPPOSITION IS IN A WORSE ONE SAYS ONE BONN OFFICIAL IT'S A MIRACLE 9305110096 930511 INTERNATIONAL ARGENTARIA GLOBAL STOCK OFFERING MADRID SPAIN'S ARGENTARIA CORP BANCARIA DE ESPANA SAID ITS GLOBAL STOCK OFFERING HAS PUT 2499 OF THE STATEOWNED BANKING GROUP INTO PRIVATE HANDS THE SUBSCRIPTION PERIOD WHICH CLOSED MAY 5 PLACED A TOTAL OF 314 MILLION SHARES ARGENTARIA SAID 63 WITH DOMESTIC INVESTORS AND 37 OVERSEAS THE BANK LAST WEEK INCREASED THE OFFER TO 2499 FROM 22 OF ITS CAPITAL AFTER THE ORIGINAL TENDER WAS OVERSUBSCRIBED BY NEARLY SEVEN TIMES THE GOVERNMENT HAS SET A CEILING OF 25 ON THE AMOUNT OF ARGENTARIA THAT MAY BE PRIVATIZED SHARES ARE DUE TO BEGIN TRADING MAY 12 IN NEW YORK LONDON AND MADRID 9305110095 930511 BUSINESS BRIEF ONTARIO HYDRO TO SCALE BACK DELAY PLANS TO BUY ELECTRICITY FROM PROJECTS TORONTO ONTARIO HYDRO ONE OF NORTH AMERICA'S LARGEST UTILITIES SAID IT PLANS TO SCALE BACK AND DELAY ITS PURCHASES OF ELECTRICITY FROM A NUMBER OF INDEPENDENT POWER PROJECTS THE DEBTLADEN UTILITY SAID IT WANTS TO POSTPONE A TOTAL OF 16 PROJECTS UNTIL 1997 AND CUT BACK THE AMOUNT OF ELECTRICITY IT WILL PURCHASE FROM 14 OF THOSE VENTURES IN A MOVE ITS SAYS WILL SAVE IT ABOUT 415 MILLION CANADIAN DOLLARS US3272 MILLION IN THE SHORT TERM THE INDEPENDENT POWER PROJECTS HAD BEEN SCHEDULED TO COME ONSTREAM IN 1995 OR EARLY 1996 MOST OF THEM ARE COGENERATION VENTURES WHICH WOULD SELL STEAM HEAT TO AN INDUSTRIAL COMPANY AND GENERATE ELECTRICITY FOR RESALE TO STATEOWNED ONTARIO HYDRO WE'RE TRYING TO BALANCE OUR CURRENT EXCESS CAPACITY SITUATION WITH THE NEEDS OF THESE PROJECT SPONSORS SAID ALLAN KUPCIS PRESIDENT OF HYDRO WE DON'T WANT TO DECIMATE THE INDUSTRY BECAUSE THAT DOESN'T DO ANY GOOD IN THE LONG TERM HYDRO FROZE THE PROJECTS AND 50 OTHER SMALLER INDEPENDENT POWER PROJECTS LAST YEAR IN AN EFFORT TO COME TO GRIPS WITH A 25 EXCESS IN GENERATING CAPACITY AT ITS OWN FACILITIES MANY OF THE SMALLER PROJECTS WERE CANCELED ALTOGETHER DR KUPCIS SAID SPONSORS OF THE PROJECTS SHOULD RECEIVE DETAILS OF THE FINAL HYDRO OFFERS TODAY AND WILL HAVE BETWEEN SIX MONTHS AND A YEAR TO ACCEPT OR REJECT THE PLAN AMONG THE VENTURES AFFECTED ARE NUMEROUS COGENERATION PROJECTS SUCH AS THE PARTNERSHIP BETWEEN TRANSALTA UTILITIES CORP OF CALGARY ALBERTA AND CHRYSLER CORP'S CANADIAN UNIT TRANSALTA HAD AGREED TO BUILD A COGENERATION PLANT AT CHRYSLER CANADA LTD'S MINIVAN ASSEMBLY PLANT IN WINDSOR ONT SUPPLYING THE LOWCOST STEAM HEAT TO CHRYSLER AND SELLING THE ELECTRICITY TO HYDRO TRANSALTA OFFICIALS HAD EARLIER RAISED THE POSSIBILITY OF LEGAL ACTION TO ENFORCE THE AGREEMENTS THEY HAD REACHED WITH HYDRO ON THE PROJECT TRANSALTA OFFICIALS DECLINED COMMENT UNTIL THEY HAVE HAD A CHANCE TO REVIEW THE HYDRO OFFER FOR NOW HYDRO HAS OPTED NOT TO BUY OUT ELECTRICITY SUPPLY CONTRACTS AS SOME LARGE US UTILITIES LIKE NIAGARA MOHAWK POWER CORP OF SYRACUSE NY HAVE DONE RECENTLY DR KUPCIS NOTED THAT MOST OF THE PROJECTS DON'T HAVE FINAL SIGNED CONTRACTS BUT ONLY AGREEMENTS ON PRICE AND CONDITIONS BESIDES HE SAYS HYDRO MAY NEED THE POWER IT WOULD SUPPLY FURTHER DOWN THE ROAD RIGHT NOW WE EXPECT THOSE POWER PURCHASES WILL STILL BE SURPLUS TO OUR NEEDS EVEN IN 1997 HE SAID BUT FORECASTING IN THIS BUSINESS IS DIFFICULT THERE COULD BE A BIG INDUSTRIAL RECOVERY THAT SENDS DEMAND HIGHER 9305110094 930511 BUSINESS BRIEFS ACME ELECTRIC CORP'S FIBER NICKEL CADMIUM BATTERY SYSTEM WAS ACCEPTED BY THE AIR FORCE FOR FLIGHT TESTING ON THE F16 FIGHTER THE SYSTEM COSTS ABOUT 10000 AN AIRCRAFT AMERICARE HEALTH GROUP INC IS DISCUSSING WITH LUMEX INC THE POSSIBLE ACQUISITION OF THE BACKTESTING EQUIPMENT DIVISION OF LUMEX'S CYBEX INC UNIT ISS INTERNATIONAL SERVICE SYSTEM AS SAID A SUBSIDIARY SIGNED A LETTER OF INTENT TO PURCHASE THE SHARES OUTSTANDING OF NATIONAL CLEANING GROUP INC FROM NUSWIFT PLC OF BRITAIN TERMS WEREN'T DISCLOSED BIOCONTROL TECHNOLOGY INC BEGAN CLINICAL TRIALS OF A DEVICE THAT TESTS PATIENTS' GLUCOSE LEVELS USING A NONINVASIVE ELECTROMAGNETIC SENSOR ALLIEDSIGNAL INC SAID IT ACQUIRED FILTRAM SA THE MANUFACTURER OF ITS FRAM FILTER PRODUCTS IN MEXICO FROM PROEZA GROUP FOR AN UNDISCLOSED PRICE 9305110093 930511 WHO'S NEWS MCDONNELL'S CHANG TO HEAD HUGHES'S GLOBAL OPERATIONS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES GARETH CC CHANG ARCHITECT OF MCDONNELL DOUGLAS CORP'S STRATEGY FOR MARKETING JETLINERS IN ASIA RESIGNED TO BECOME CHIEF OF INTERNATIONAL OPERATIONS FOR HUGHES AIRCRAFT CO THE MOVE BY MR CHANG 50 YEARS OLD LEAVES ST LOUISBASED MCDONNELL DOUGLAS SEARCHING FOR A PERMANENT SUCCESSOR IN THE PIVOTAL POST OF PRESIDENT OF PACIFICASIAN OPERATIONS AT HUGHES A LOS ANGELES UNIT OF GENERAL MOTORS CORP MR CHANG WILL SERVE AS SENIOR VICE PRESIDENT OF MARKETING AND PRESIDENT OF THE NEWLY REORGANIZED HUGHES INTERNATIONAL HE WILL BE A MEMBER OF THE SELECT OFFICE OF THE CHAIRMAN AND HE WAS ELECTED AN OFFICER OF THE GM HUGHES ELECTRONICS CORP SUBSIDIARY THAT INCLUDES BOTH HUGHES AIRCRAFT AND DELCO ELECTRONICS CORP IN HIS 20 YEARS WITH MCDONNELL DOUGLAS MR CHANG ENGINEERED THE COMPANY'S EIGHTYEAROLD ARRANGEMENT TO PRODUCE JETS AND PARTS IN CHINA HE ALSO WAS CHARGED WITH LINING UP ASIAN INVESTORS TO BUY PART OF THE COMPANY'S DOUGLAS AIRCRAFT CO UNIT AND TO ASSIST IN DEVELOPING A NEW SUPERJUMBO JETLINER IN AN INTERVIEW MR CHANG SAID HE HAD PROVED THE VIABILITY OF LOWERCOST CHINESE PRODUCTION AND HAD DEMONSTRATED THAT ATTRACTING FOREIGN INVESTORS IS THE CORRECT SOLUTION FOR RETURNING DOUGLAS AIRCRAFT TO A STRONG MARKET POSITION LAST YEAR DURING MR CHANG'S TENURE DOUGLAS AIRCRAFT ATTRACTED THE INTEREST OF TAIWANESE INVESTORS ALTHOUGH THE TALKS UNRAVELED NONETHELESS I THINK THE JOB WAS DONE HE SAID EVEN THOUGH MCDONNELL DOUGLAS STILL HAS WORK TO DO TO REACH ITS GOALS IN ASIA A MCDONNELL DOUGLAS SPOKESWOMAN SAID THAT WHILE NO PERMANENT SUCCESSOR HAS BEEN NAMED THE COMPANY PICKED JOHN MANGAN A VICE PRESIDENT WHO WORKED UNDER MR CHANG TO BE ITS PACIFIC/ASIAN PRESIDENT ON A TEMPORARY BASIS AT HUGHES MR CHANG WILL HAVE CORPORATE RESPONSIBILITY FOR WORLDWIDE MARKETING INCLUDING HUGHES'S GOVERNMENT RELATIONS ACTIVITIES IN WASHINGTON AND CORPORATE BUSINESS DEVELOPMENT HE WILL ALSO BE RESPONSIBLE FOR HUGHES EUROPE HUGHES ASIA/PACIFIC HUGHES MIDEAST/SOUTH AMERICA AND HUGHES CANADA LTD 9305110092 930511 TECHNOLOGY APPLE IS DEVELOPING SOFTWARE THAT LETS WORKSTATIONS RUN MACINTOSH PROGRAMS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC IN A MOVE TO KEEP DEVELOPERS OF MACINTOSH SOFTWARE FROM DEFECTING TO COMPETITORS SAID IT'S DEVELOPING SOFTWARE THAT WILL LET SOME WORKSTATION COMPUTERS RUN APPLICATIONS SOFTWARE WRITTEN FOR ITS MACINTOSH APPLE SAID THE SOFTWARE IT'S DEVELOPING WILL ALLOW SERVER AND WORKSTATIONS COMPUTERS THAT USE THE UNIX OPERATING SYSTEM TO RUN MACINTOSH APPLICATIONS SOFTWARE WITH NO MODIFICATIONS CURRENTLY MACINTOSH APPLICATIONS SUCH AS WORD PROCESSORS SPREADSHEETS AND GRAPHICS SOFTWARE ONLY RUN ON MACINTOSH MACHINES THE MOVE COMES AS THE CUPERTINO CALIF COMPANY IS INCREASINGLY EXPERIMENTING WITH NEW DIRECTIONS FOR ITS BASIC SOFTWARE TRADITIONALLY APPLE HAS CLOSELY GUARDED ITS BASIC OPERATING SYSTEM SHARING NO TECHNOLOGY WITH COMPETITORS BUT IT HAS BEGUN DEVELOPING A NEW OPERATING SYSTEM WITH INTERNATIONAL BUSINESS MACHINES CORP THAT BOTH COMPANIES EXPECT TO USE IN THE FUTURE AND NOVELL INC AND APPLE ARE WORKING TOGETHER TO GIVE NOVELL'S OPERATING SOFTWARE THE LOOK AND FEEL OF THE MACINTOSH BY ALLOWING WORKSTATIONS TO USE MACINTOSH PROGRAMS APPLE HOPES TO ENTICE SOFTWARE DEVELOPERS TO CREATE NEW MACINTOSH COMPUTER PROGRAMS WITH THE PROMISE OF AN EXPANDED MARKET FOR THE SOFTWARE MANY SOFTWARE HOUSES THAT ONCE SPECIALIZED IN APPLE SOFTWARE HAVE BEGUN WRITING FOR PCS THAT RUN MICROSOFT CORP'S WINDOWS OPERATING SYSTEM AND SOME IN THE INDUSTRY HAVE WARNED THAT THE MACINTOSH MARKET WAS TOO SMALL BY COMPARISON TO CONTINUE TO ATTRACT NEW SOFTWARE MORRIS TARADALSKY AN APPLE VICE PRESIDENT AND GENERAL MANAGER SAID APPLE ALREADY HAS A WORKING PROTOTYPE OF THE SOFTWARE WE DO HAVE IT WORKING IN THE LAB AND WE ARE EXPECTING TO MAKE IT AVAILABLE BY THE END OF THIS YEAR MR TARADALSKY SAID THE FIRST VERSIONS OF THE SOFTWARE WILL RUN ON COMPUTERS MADE BY IBM SUN MICROSYSTEMS INC AND HEWLETTPACKARD CO HE SAID THOSE COMPANIES YESTERDAY ANNOUNCED THEIR SUPPORT FOR APPLE'S PLAN THE APPLE SOFTWARE WOULD ALLOW A UNIXBASED WORKSTATION TO DISPLAY A WINDOW ON ITS SCREEN THAT WOULD LOOK JUST LIKE A MACINTOSH SCREEN THE SCREEN WOULD RUN OFFTHESHELF MACINTOSH APPLICATIONS AND ANY DATA FROM THOSE PROGRAMS COULD THEN BE USED WITH OTHER UNIX PROGRAMS APPLE SAID THE PLANNED SOFTWARE WILL ALLOW WORKSTATIONS WHICH ARE ENGINEERINGORIENTED TO TAKE ADVANTAGE OF APPLE'S EASYTOUSE COMPUTER PROGRAMS MR TARADALSKY SAID WE THINK WE CAN GET A SUBSTANTIAL PERCENTAGE OF THE UNIX MARKET HE SAID APPLE'S MOVE HOWEVER ADDS JUST ONE OPTION IN AN INCREASINGLY CROWDED MARKET NEW GENERATIONS OF COMPUTER CHIPS AND NEW OPERATING SOFTWARE WILL SOON INUNDATE CUSTOMERS WITH A VARIETY OF CHOICES OF HIGHEND DESKTOP COMPUTERS AND SOFTWARE MICROSOFT'S NEW WINDOWS NT OPERATING SYSTEM SCHEDULED TO COME OUT LATER THIS YEAR WILL RUN ON MACHINES USING SEVERAL DIFFERENT CHIPS AS WILL SUN MICROSYSTEMS INC'S NEW OPERATING SYSTEM WHICH IS BASED ON UNIX THIS INDUSTRY IS TOO DYNAMIC TO HAVE A SINGLE CHOICE SAID JUDITH HURWITZ PRESIDENT OF HURWITZ CONSULTING GROUP INC A SOFTWARE CONSULTING FIRM 9305110091 930511 INTERNATIONAL NEW FRENCH GOVERNMENT UNVEILS PLAN OF HEFTY TAX INCREASES SPENDING CUTS BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS FRANCE'S NEW CONSERVATIVE GOVERNMENT TOOK AIM AT ITS RUNAWAY BUDGET DEFICIT WITH A STRINGENT INTERIM BUDGET PACKAGE OF HEFTY TAX INCREASES AND MOREMODEST SPENDING CUTS THE PLAN ILLUSTRATES HOW THE GOVERNMENT HAS PUT DEFICITCUTTING AHEAD OF ANY STIMULUS SPENDING TO JUMPSTART THE FALTERING FRENCH ECONOMY WHICH IT EXPECTS TO SHRINK BY 04 THIS YEAR ANNOUNCING THE PACKAGE PRIME MINISTER EDOUARD BALLADUR SAID THAT IT WAS ESSENTIAL TO BRING THE DEFICIT UNDER CONTROL AS A WAY TO STIMULATE THE ECONOMY WITHOUT GIVING ANY LEEWAY TO INFLATION OR TO HIGHER INTEREST RATES DESPITE THE UNFAVORABLE SHORTTERM ECONOMIC OUTLOOK THIS PROGRAM LAYS IN PLACE THE FIRST ELEMENTS OF A SUSTAINABLE RECOVERY HE SAID THE NEW BUDGET PUSHES UP TAXES ON GASOLINE AND ON SPIRITS SUCH AS WHISKY COGNAC AND VODKA BUT SPARESINE AND BEER AND MORE THAN DOUBLES A LEVY ON PERSONAL AND INVESTMENT INCOME INTRODUCED BY ONE OF MR BALLADUR'S SOCIALIST PREDECESSORS IN ALL THE EXTRA REVENUES FROM THESE MEASURES ARE EXPECTED TO BRING IN SOME 77 BILLION FRENCH FRANCS 144 BILLION THIS TOGETHER WITH 86 BILLION FRANCS IN DIVERSE SPENDING CUTS INCLUDING A FREEZE ON CIVIL SERVANTS' PAY WILL ALLOW THE GOVERNMENT TO TRIM THE PROJECTED 1993 BUDGET DEFICIT TO 317 BILLION FRANCS FROM A FORECAST 333 BILLION FRANCS THE GOVERNMENT SAYS THE 1992 BUDGET DEFICIT WAS 227 BILLION FRANCS OR 32 OF GROSS DOMESTIC PRODUCT HOWEVER THE PACKAGE ALSO INCLUDES 13 BILLION FRANCS IN MEASURES INTENDED TO HELP SMALL BUSINESSES AND THE CONSTRUCTION INDUSTRY FINANCIAL MARKETS DIDN'T FLINCH TO THE ANNOUNCEMENT OF THE PACKAGE WHICH HAD BEEN FORESHADOWED BY MR BALLADUR'S OFTREPEATED SOBER WARNING OF THE SACRIFICES TO COME SEVERAL UNION LEADERS AND LEFTWING POLITICIANS SHARPLY CRITICIZED THE PACKAGE AFTERWARDS AND THE POWERFUL CGT LABOR UNION CALLED FOR A DAY OF STRIKES BUT MR BALLADUR'S BUOYANCY IN THE OPINION POLLS SINCE HE WAS APPOINTED PRIME MINISTER AT THE END OF MARCH TOGETHER WITH THE RIGHTWING PARTIES' OVERWHELMING PARLIAMENTARY MAJORITY SUGGEST THAT THERE IS LITTLE THREAT THE PACKAGE WILL NOT BE CARRIED THROUGH ECONOMISTS SHOWED LITTLE ENTHUSIASM FOR THE PACKAGE ITSELF ALTHOUGH THEY GENERALLY APPLAUDED MR BALLADUR'S POLITICAL SAVVY IN CAREFULLY SOFTENING UP PUBLIC OPINION FOR THE NASTY MEDICINE THIS BUDGET REFLECTS HOW THE GOVERNMENT IS WALKING ON A TIGHTROPE BETWEEN HIGH DEFICITS AND A DEEP RECESSION SAID JEANFRANCOIS MERCIER FRENCH ECONOMIST WITH SALOMON BROTHERS HE ADDED THAT IN VIEW OF THE TAX INCREASES TOGETHER WITH SIGNS OF FALTERING CORPORATE INVESTMENT AND THE SLUGGISHNESS OF FRANCE'S EUROPEAN EXPORT MARKETS HE IS REVISING HIS FORECAST FOR FRENCH GDP DOWN TO SHOW A CONTRACTION OF BETWEEN 05 AND 10 THIS YEAR 9305110090 930511 EDUCATION ARITHMETIC ON COLLEGE AID VARIES WIDELY BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL WHEN ILISSA WOOD WAS ACCEPTED AT BOSTON UNIVERSITY FOR THE FALL THE SCHOOL TOLD HER SHE QUALIFIED FOR 4475 IN NEEDBASED FINANCIAL AID TO DEFRAY THE 25600 COST OF ATTENDANCE UNION COLLEGE ALSO ACCEPTED ILISSA BUT THE SCHENECTADY NY SCHOOL OFFERED 21650 IN FINANCIAL AID LEAVING LESS THAN 4000 IN EXPENSES FOR THE YEAR ILISSA'S MOTHER DALE SAYS SHE IS GRATEFUL FOR THE HIGHER OFFER BUT ALSO INCREDULOUS ONE SCHOOL TELLS ME I OWE 21000 AND ANOTHER ONE GIVES ME 21000 SAYS MRS WOOD AN UNEMPLOYED MARKETING SPECIALIST IN NEWTON MASS HOW MUCH FURTHER APART CAN YOU GET WITH THE ACCEPTANCEANDRESPONSE CYCLE JUST WINDING DOWN FOR NEXT YEAR'S FRESHMAN CLASS THAT HAS BEEN A MUCHASKED QUESTION AS NEVER BEFORE WIDE VARIATIONS IN FINANCIAL AID AWARDS ARE ROILING THE ADMISSIONS PROCESS LEADING TO CONFUSED PARENTS ANXIOUS STUDENTS AND MORE HAGGLING AND NEGOTIATIONS WITH SCHOOLS OVER TERMS AND FINAL PRICES MOST OF THE 31 BILLION A YEAR IN FINANCIAL AID GRANTS LOANS AND WORKSTUDY PAY IS AWARDED ON THE BASIS OF NEED BUT RECENT FEDERAL RULE CHANGES AND ANTITRUST LITIGATION COUPLED WITH TIGHT COLLEGE BUDGETS HAVE PRODUCED HUGE VARIATIONS IN SCHOOLS' DEFINITIONS OF NEED AND IN THEIR WILLINGNESS OR ABILITY TO MEET IT COLLEGES ARE ALSO INCREASING MERITBASED AID AWARDS TO WOO THE BEST STUDENTS LEADING TO FURTHER DISCREPANCIES IT'S ABSOLUTELY CHAOTIC OUT THERE SAYS PAT GILDERSLEEVE WHO RUNS AN ADMISSIONSADVISORY SERVICE IN NEW HARTFORD NY PEOPLE DON'T EVEN HAVE A CLEAR PICTURE OF WHAT THEIR EXPECTED FAMILY CONTRIBUTION IS PARENTS ARE TOTALLY CONFUSED FOR THE FIRST TIME THIS ADMISSIONS SEASON THE NEEDDEFINITION FORMULA FOR FEDERAL FINANCIAL AID EXCLUDES THE EQUITY VALUE OF THE FAMILY HOUSE AMONG ASSETS AVAILABLE TO PAY FOR COLLEGE THIS SWITCH GREATLY EXPANDED MIDDLECLASS ELIGIBILITY FOR AWARDS SUCH AS FEDERAL PELL GRANTS AND GUARANTEED LOANS PUBLIC COLLEGES GENERALLY FOLLOW THE FEDERAL NEED DEFINITION IN GIVING AWAY THEIR OWN MONEY BUT MANY PRIVATE COLLEGES ESPECIALLY EXPENSIVE AND PRESTIGIOUS SCHOOLS THAT AWARD A LOT OF FINANCIAL AID HAVE REJECTED THE FEDERAL METHODOLOGY HARVARD UNIVERSITY AND OTHER IVY LEAGUE SCHOOLS CONTINUE TO ASSUME THAT ABOUT 5 OF HOME EQUITY IS AVAILABLE EACH YEAR TO PAY TUITION BILLS THE FAMILY CONTRIBUTION THE TRUE NET PRICE OF COLLEGE VARIES BY AN AVERAGE OF 25 BETWEEN SCHOOLS THAT COUNT HOME EQUITY AND THOSE THAT DON'T ACCORDING TO ARCHIMEDES SYSTEMS INC A SMALL FINANCIALAID ADVISORY SERVICE IN WALTHAM MASS KERRY GILBERTSON A SENIOR AT MONTCLAIR HIGH SCHOOL IN NEW JERSEY APPLIED TO RUTGERS THE STATE'S FLAGSHIP PUBLIC UNIVERSITY AND BENNINGTON COLLEGE A PRIVATE SCHOOL IN VERMONT RUTGERS WHICH DOESN'T CONSIDER HOME EQUITY IN AWARDING AID GAVE HER A FINANCIAL AID PACKAGE COVERING THE FULL COST OF ABOUT 9400 INCLUDING SOME LOANS PAYABLE LATER BENNINGTON WHICH CONSIDERS HOME EQUITY CAME UP WITH A GENEROUS PACKAGE OF 21580 ALSO INCLUDING LOANS BUT THAT STILL LEFT HER RESPONSIBLE FOR COMING UP WITH ABOUT 17 OR ABOUT 4500 OF THE COSTS FOR THE YEAR MS GILBERTSON CHOSE BENNINGTON ANYWAY LARGELY ON THE STRENGTH OF ITS THEATER PROGRAM BUT HER SITUATION SHOWS HOW WIDELY THE DEFINITION OF NEED CAN VARY FOR SOME EDUCATORS VARIATIONS SUCH AS THESE RAISE QUESTIONS ABOUT HOW PRIVATE SCHOOLS WHICH BENEFIT FROM GENEROUS FEDERAL FINANCIALAID SUPPORT CAN REJECT THE FEDERAL DEFINITION OF NEED WHEN IT COMES TO THEIR OWN AID MONEY IT'S ABSOLUTELY BIZARRE SAYS SCOTT WHITE MS GILBERTSON'S GUIDANCE COUNSELOR WE NOW HAVE TWO FINANCIAL AID DELIVERY SYSTEMS ONE FOR PRIVATE COLLEGES AND ONE FOR PUBLIC COLLEGES IN THE PAST THERE WOULD HAVE BEEN NO DIFFERENCE IN THE FAMILY CONTRIBUTION EXPECTED OF MS SINCLAIR AT WESLEYAN DARTMOUTH AND THE UNIVERSITY OF PENNSYLVANIA WHERE SHE WAS ALSO ACCEPTED THE THREE SCHOOLS WERE MEMBERS OF A GROUP THAT COMMONLY SET FAMILYCONTRIBUTION LEVELS AND WAS BROKEN UP AS AN ILLEGAL PRICEFIXING CARTEL BY THE JUSTICE DEPARTMENT FOR MS SINCLAIR THAT MEANS A LOWERCOST OPTION HER FIRST CHOICE DARTMOUTH WANTS ONLY 3900 FROM THE SINCLAIR FAMILY NEXT YEAR WESLEYAN WANTED 4375 AND PENN 5475 MORE COUNSELORS ARE TELLING STUDENTS TO NEGOTIATE WHEN AID AWARDS VARY DESPITE A STANDARD PRONOUNCEMENT FROM SCHOOLS THAT FINANCIAL AID ISN'T NEGOTIABLE AND COLLEGES MAY HAVE MORE TO GIVE THAN THEY ACKNOWLEGE VANESSA RICHARDS A SENIOR AT SACRED HEART ACADEMY IN NEW YORK CITY APPLIED TO THREE SCHOOLS AND WAS ACCEPTED AT TWO INCLUDING BOSTON UNIVERSITY AND BARNARD COLLEGE PART OF COLUMBIA UNIVERSITY ALTHOUGH BARNARD WAS HER FIRST CHOICE ITS ORIGINAL AID OFFER MEANT A NET COST TO HER OF ABOUT 15000 6000 MORE THAN BU EXPECTED MS RICHARDS APPEALED ARGUING THAT BARNARD WAS BEING UNREASONABLE IN COUNTING HER FATHER'S INCOME BECAUSE HE WAS DIVORCED FROM HER MOTHER AND WOULD MAKE NO CONTRIBUTION TO COLLEGE PAYMENTS BARNARD RECONSIDERED AND ESSENTIALLY MATCHED THE BU OFFER I'M REALLY IMPRESSED WITH THE WAY BARNARD HANDLED THIS SAYS MS RICHARDS SHE HAS TOLD BARNARD TO EXPECT HER IN THE FALL METHODOLOGY USED TO DETERMINE NEED IN AWARDING PELL GRANTS GUARANTEED STUDENT LOANS AND OTHER FEDERAL FINANCIAL AID VALUE OF FAMILY'S HOME IS NOT INCLUDED IN ASSET TALLY AND HAS NO EFFECT ON ASSUMED FAMILY CONTRIBUTIONS OR AID AWARD INCOME OF DIVORCED NONCUSTODIAL PARENT IS NOT INCLUDED IN INCOME TALLY AND DOESN'T AFFECT AID AWARD A STRICT FORMULA APPROACH APPLIES WITH NO NEGOTIATION AND LITTLE ROOM FOR INSTITUTIONAL DISCRETION METHODOLOGY COMMONLY USED BY PRIVATE SCHOOLS FOR FINANCIALAID AWARDS FROM THEIR OWN FUNDS VALUE OF FAMILY'S HOME IS INCLUDED IN ASSET TALLY AND DIMINISHES NEED AND AID AWARD INFORMATION ON INCOME OF NONCUSTODIAL PARENT IS REQUIRED AND OFTEN DIMINISHES AID AWARD INSTITUTIONAL DISCRETION IS WIDE FIRST OFFER NOT ALWAYS THE BEST OFFER 9305110089 930511 CORPORATE FOCUS SUN MICROSYSTEMS JUGGLES NEW STRATEGIES AND OLD RIVALS WORKSTATION LEADER PREPARES TO FEND OFF INCURSIONS BY PCS INTO ITS TURF BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SUN MICROSYSTEMS INC RECENTLY RELEASED TO THE MEDIA A PICTURE OF ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SCOTT MCNEALY JUGGLING PARTS OF ITS SPARC COMPUTERS A DEFT BIT OF SHOWMANSHIP BY THE LEADER IN COMPUTER WORKSTATIONS THESE DAYS MR MCNEALY IS A JUGGLER IN MORE WAYS THAN ONE HE IS TRYING TO KEEP MORE AND MORE STRATEGIES IN THE AIR ATTEMPTING TO OVERCOME COSTLY DELAYS IN NEW WORKSTATIONS AND SOFTWARE AND FIGHTING OFF THE FUTURE ENTRY OF PERSONALCOMPUTER MAKERS INTO WORKSTATIONS WHILE CONTENDING WITH INTENSE COMPETITION FROM HIS TRADITIONAL RIVALS HEWLETTPACKARD CO DIGITAL EQUIPMENT CO AND INTERNATIONAL BUSINESS MACHINES CORP AT THE SAME TIME MR MCNEALY WHO HAS ALSO BEEN RUNNING SUN'S HARDWARE UNIT IS RECRUITING A SUCCESSOR TO TAKE THE REINS AT THAT SUBSIDIARY ON ANOTHER SCORE HE IS PLAYING DOWN WITHOUT DISMISSING LAYOFF RUMORS SWEEPING SUN'S WORK FORCE BY OFFERING POWERFUL WORKSTATIONS AT RELATIVELY LOW PRICES SUN MOUNTAIN VIEW CALIF HAS GENERATED EXPLOSIVE REVENUE GROWTH EXPANDING ALMOST SEVENFOLD IN THE PAST FIVE YEARS AND CAPTURING NEARLY 40 OF ITS MARKET BUT SUN'S EARNINGS BEGAN STALLING TWO YEARS AGO MAINLY BECAUSE OF DELAYS IN GETTING OUT NEW WORKSTATIONS AND SLOWING GROWTH IN THE OVERALL 10 BILLION MARKET FOR WORKSTATIONS WHICH ARE USED FOR SCIENTIFIC AND TECHNICAL COMPUTING SUN'S MARKET SHARE NOW IS DOWN TO 38 AND ITS STOCK HAS ALSO STALLED IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY SUN CLOSED AT 26375 DOWN 25 CENTS ON THE DAY AND OFF ABOUT A THIRD FROM ITS JANUARY HIGH OF 41 SOME ANALYSTS FEAR THAT THE FUTURE WILL BE EVEN ROCKIER BECAUSE THEY SAY SUN IS LOSING ITS TECHNOLOGICAL EDGE AND NEW MICROPROCESSORS COMBINED WITH NEW OPERATING SYSTEMS WILL SOON ALLOW PC MAKERS TO BLITZ INTO THE WORKSTATION MARKET INTEL CORP IS NOW SELLING A POWERFUL MICROPROCESSOR CALLED THE PENTIUM AND MICROSOFT CORP PLANS TO BEGIN SELLING A NEW OPERATING SYSTEM WINDOWS NT AT THE END OF THE MONTH THAT WILL RUN ON PENTIUM BY NEXT YEAR APPLE COMPUTER INC AND IBM PLAN TO HAVE THEIR OWN OPERATING SYSTEM RUNNING ON A MOTOROLA INC MICROPROCESSOR CALLED THE POWERPC THESE NEW COMPUTER SYSTEMS MAY OFFER SUN'S ADVANTAGES AT LOWER PRICES SUN HAS BEEN IN A DIFFICULT SPOT SAYS MICHAEL SLATER EDITOR OF MICROPROCESSOR REPORT THEY HAVEN'T BEEN ABLE TO MAINTAIN A PERFORMANCE LEAD HP IBM AND DEC HAVE FASTER SPEEDS DIGITAL'S HIGHEND MACHINES PERFORM SCIENTIFIC TASKS CALLED FLOATINGPOINT CALCULATIONS TWICE AS FAST AS SUN'S HE CONTENDS MOREOVER HE SAYS SUN HAS TIED THEIR FUTURE TO THE UNIX OPERATING SYSTEM IF USERS ABANDON UNIX FOR WINDOWS NT HE WARNS SUN WILL HAVE TROUBLE MAINTAINING ITS GROWTH AND PROFITABILITY THEY'RE HAVING A ROUGH YEAR AGREES STEWART ALSOP EDITOR OF INFOWORLD MAGAZINE THE INCIPIENT DELIVERY OF MICROSOFT WINDOWS NT HAS MADE THEM AWARE OF THEIR OWN MORTALITY JOHN LEVINSON A GOLDMAN SACHS & CO ANALYST RECENTLY WIPED SUN OFF HIS BUY LIST I'M WORRIED ABOUT THE WORKSTATION MARKET LOSING SHARE TO PCS HE SAYS THEY'RE UNDERGOING A LONG AND DIFFICULT TRANSITION TO A NEW OPERATING SYSTEM OF THEIR OWN CALLED SOLARIS 2 ADDS DAVID SMITH OF INTERNATIONAL DATA CORP OF FRAMINGHAM MASS BUT MR MCNEALY YIELDS NO GROUND I'LL PUT OUR GROWTH MARKET POSITION AND TRACK RECORD AGAINST ANYBODY'S IN THE LAST 12 YEARS HE SAYS WE'VE BEEN RIGHT MORE OFTEN THAN WRONG HE BLASTS CRITICS OF SUN'S TECHNOLOGICAL PERFORMANCE AS ABSOLUTELY WRONG IN THREE OUT OF FOUR TECHNICAL PARAMATERS HE INSISTS WE'RE ON TOP WE'RE KICKING BUTT IN THE MARKETPLACE WE HAVE 40 OF THE MARKETPLACE AND I READ IT INCHED UP HE ADDS MR MCNEALY HAS SPLIT SUN INTO SEPARATE HARDWARE AND SOFTWARE UNITS AND UNLEASHED THE SOFTWARE MANAGERS TO GO AFTER THE PC MARKET BY ADAPTING SOLARIS UNIX TO RUN ON INTEL'S BESTSELLING 486 MICROPROCESSOR AND TO RUN APPLICATIONS WRITTEN FOR MICROSOFT'S WINDOWS OPERATING SYSTEM THAT HOLDS A REAL KEY FOR THEM IT'S EXACTLY THE KIND OF PRODUCT THEY NEED TO GET DESKTOP VOLUME SAYS LISA THORELL AN ANALYST FOR THE RESEARCH FIRM DATAQUEST BUT IF THE ADAPTED SOLARIS IS A BIG HIT ON CHEAPER PC MACHINES THAT COULD CANNIBALIZE SUN'S OWN WORKSTATION SALES MR MCNEALY BRISTLES AT SUCH AN IDEA WHY WOULD THEY BE CHEAPER HE ASKS HEATEDLY SUN'S SPARC CHIP IS CHEAPER FASTER AND MORE ENERGY EFFICIENT TELL ME WHY WE'LL LOSE MARKET SHARE HIGHVOLUME PC MAKERS SAY SUN WILL LOSE MARKET SHARE BECAUSE THEY CAN ALWAYS UNDERCUT SUN'S PRICES MICROSOFT FOR INSTANCE SELLS 15 MILLION WINDOWS SYSTEMS MOSTLY TO PC MAKERS EVERY MONTH SUN HAS SOLD 806000 MACHINES ALTOGETHER DESPITE TECHNICAL CRITICISM SUN HAS A LOYAL CLIENT BASE THE MACHINE IS RELATIVELY FLAWLESS SAYS JAMES CRAWFORD SENIOR SYSTEMS PROGRAMMER FOR POTLATCH CORP A SAN FRANCISCO FORESTPRODUCTS COMPANY POTLATCH SWITCHED FROM DIGITAL TO SUN LAST YEAR AND NOW HAS INSTALLED 15 SUN WORKSTATIONS FOR ABOUT 350000 I WENT WITH SUN FOR PRICEPERFORMANCE HE SAYS NOTING THAT ANOTHER VENDOR WOULD CHARGE 15 MILLION LONG A LONER IN THE WORKSTATION WORLD SUN IS NOW SEEKING ALLIANCES AND COMMON STANDARDS WITH OTHER COMPANIES HOWEVER MR MCNEALY'S SHARP TONGUE SOMETIMES GETS IN THE WAY FOR EXAMPLE HE HAS AIRILY DISMISSED HP'S COMPUTING PROWESS BY LABELING IT THE GREATEST PRINTER COMPANY IN THE WORLD NOW HE BLITHELY DISMISSES FUTURE CHALLENGES FROM THE LIKES OF DELL COMPUTER CORP AND COMPAQ COMPUTER CORP CALLING THEM MERE DISTRIBUTORS MR MCNEALY'S DENIES BEING OBSTREPEROUS I DON'T TONGUELASH I JUST CALL THEM AS I SEE THEM HE SAYS ADDING AFTER A MOMENT MAYBE I'M NOT SO DIPLOMATIC AS FOR WIDESPREAD TALK OF LAYOFFS HE ADDS WE DON'T COMMENT ON RUMORS NO MATTER HOW SILLY OR ACCURATE HE ADDS SUN HAS NEVER PROMISED LIFETIME EMPLOYMENT THE BRAVADO SUBSIDES ONLY WHEN MR MCNEALY IS PRESSED ABOUT WHY EARNINGS HAVE DECLINED FOR SEVERAL QUARTERS WE SHOULD HAVE GOTTEN OUR SUPERSPARC CHIP OUT SIX TO NINE MONTHS EARLIER THAN WE DID AND I WISH WE WERE FURTHER ALONG IN OUR TRANSITION TO SOLARIS I THINK MOST WILL BE DONE THIS YEAR BUT THERE MAY BE SOME STRAGGLERS INTO THE EARLY PART OF NEXT YEAR HE ADMITS WE'RE NOT PERFECT BUT NOBODY EVER IS AFTER LAST YEAR'S PRODUCTION GLITCHES AND PROFIT PLUNGES ANALYSTS THINK SUN MAY STABILIZE ITS PROFIT PERFORMANCE IN COMING QUARTERS IT'S UNLIKELY THEY'LL HAVE DOWN EARNINGS FOR QUITE A WHILE SAYS GOLDMAN SACHS'S MR LEVINSON AFTER THE PRODUCTION DELAYS AND DEPRESSED PROFITS OF THE LAST FOUR QUARTERS SUN'S NEW MODEL 41 NOW IS AVAILABLE AND FUTURE QUARTERS COULD LOOK COMPARATIVELY GOOD 9305110088 930511 TECHNOLOGY SEMICONDUCTOR ORDERS FELL SLIGHTLY IN APRIL TRADE ASSOCIATION SAYS SAN JOSE CALIF NEW ORDERS FOR SEMICONDUCTORS IN THE US SLIPPED SLIGHTLY IN APRIL ACCORDING TO FIGURES RELEASED BY THE SEMICONDUCTOR INDUSTRY ASSOCIATION THE INDUSTRY'S BOOKTOBILL RATIO FOR APRIL WAS 113 COMPARED TO A MARCH LEVEL OF 117 THAT MEANS FOR EVERY 100 OF CHIPS SHIPPED THE INDUSTRY RECEIVED 113 IN NEW ORDERS IN APRIL BASED ON A ROLLING THREEMONTH AVERAGE APRIL ORDERS ACCOUNTED FOR 217 BILLION DOWN SLIGHTLY FROM THE 218 BILLION POSTED IN MARCH BUT UP 35 FROM THE SAME PERIOD A YEAR AGO SEMICONDUCTOR BILLINGS OR SHIPMENTS BASED ON A THREEMONTH AVERAGE WERE UP 35 TO 192 BILLION FROM 185 BILLION IN MARCH AND UP 34 FROM A YEAR AGO ACTUAL SINGLEMONTH US CHIP SHIPMENTS IN FEBRUARY WERE 177 BILLION UP 20 FROM MARCH AND UP 29 FROM A YEAR AGO 9305110087 930511 BUSINESS WORLD SALLIE IS A STANDOUT NEXT TO WHAT FOLLOWS BY TIM W FERGUSON SAVVY FISCAL CONSERVATIVES HAVE FOCUSED IN RECENT YEARS ON WASHINGTON'S OFFBUDGET PROBLEM LARGELY THE CREDITS GUARANTEED BY SOCALLED GOVERNMENT SPONSORED ENTERPRISES AMONG THOSE UNITS IS SALLIE MAE THE STUDENT LOAN MARKETING ASSOCIATION IN A TWIST SALLIE MAE IS NOW ALLYING ITSELF WITH THE FRUGALITY FORCES IN A FIGHT TO HEAD OFF THE CLINTON ADMINISTRATION FROM TURNING OVER TO UNCLE SAM ALL LENDING TO COLLEGE STUDENTS THE PRESIDENT'S PLAN MAKES ITS FIRST STOP IN A HOUSE COMMITTEE THIS WEEK STUDENT BORROWING IS BIG BUSINESS IN THE US AND GETTING BIGGER STILL REGARDLESS OF WHAT HAPPENS TO MR CLINTON'S PROPOSAL CONGRESSIONAL ACTION LAST YEAR IS LIKELY TO RAISE THE TOTAL ANNUAL LOAN ORIGINATIONS FOR POSTSECONDARY PURPOSES TO MORE THAN 23 BILLION BY 1998 FROM 15 BILLION NOW AND BARELY 2 BILLION IN 1978 MOST OF THAT LENDING COMES FROM COMMERCIAL BANKS AND SALLIE MAE BUYS MANY OF THOSE LOANS ENOUGH TO RANK IT IN SIZE AMONG THE LIKES OF FLEET FINANCIAL GROUP NORWEST AND BANK OF NEW YORK MR CLINTON WANTS TO GET THE BANKS OUT OF THIS END OF STUDENT LENDING WITHIN FIVE YEARS SALLIE MAE WANTS TO STRETCH OUT SUCH A SWITCHOVER PARTLY IN THE HOPE THAT WASHINGTON'S PERFORMANCE WILL DISCREDIT THE IDEA IN MIDCOURSE GUARANTEED LOANS FOR THOSE SEEKING UNDERGRADUATE GRADUATE AND TRADESCHOOL DEGREES GOT STARTED IN THE GREAT SOCIETY BUT EXPLODED LATER WHEN GRANTS COULDN'T KEEP PACE WITH HUGE TUITION RISES NOW CONGRESS HAS MANDATED ANOTHER BIG EXPANSION EVEN AS LONGSTANDING CONCERNS ABOUT HIGH DEFAULT RATES ARE JUST BEGINNING TO BE ADDRESSED PART OF LAST YEAR'S LEGISLATION WAS A PILOT DIRECTLENDING PROGRAM TO BYPASS THE BANK APPLICATIONS NOW USUALLY ARRANGED THROUGH SCHOOL FINANCIALAID OFFICES PRESIDENT CLINTON WANTS TO GO ALL THE WAY WITH THAT IDEA ONESTOP SHOPPING SOUNDS GOOD AND EASY PIECING TOGETHER UNSECURED LOANS THAT MIGHT TOTAL 25000 A YEAR AT A PRESTIGE PRIVATE UNIVERSITY IS NO SIMPLE TASK BUT WELLRUN FINANCIAL AID OFFICES ARE ABLE TO CUT A GREAT DEAL OF THE COMPLEXITY OUT OF THE PROCESS SAYS LAWRENCE HOUGH SALLIE MAE'S PRESIDENT AND CEO WHERE COMPLEXITY REMAINS IT'S NOT GOING TO GO AWAY WITH A DIRECTLOAN PROCESS CONGRESS HAS LAYERED ELIGIBILITY STANDARDS ON TOP OF REPAYMENT RULES AND FORBEARANCE CLAUSES AS PART OF ITS EXTENSION OF CREDIT TO STUDENTS THE MARKET WOULD CONSIDER POOR RISKS PRESUMABLY THE CLINTON CAMP WON'T THROW OPEN THE VAULT SO PAPERWORK WILL STILL SLOW THE RUSH OF BORROWERS IT'S NOT GOING TO BE A GRANT WITH A PROMISSORY NOTE MR HOUGH SAYS HE MAINTAINS THAT WON'T BE THE ONLY UNPLEASANT SURPRISE FOR ALL OF ITS FAULTS THE CURRENT SYSTEM OFFERS FINANCIALAID OFFICERS SOME CHOICE AMONG BANKS WISHING TO PARTICIPATE THEY ARE ABLE TO TELL A LAZY LENDER YOU HAVEN'T BEEN ANSWERING THE PHONE IN 90 SECONDS OR A MINUTE OR EVER YOU'VE GOT 30 DAYS TO FIX IT OR YOUR APPLICATIONS ARE IN THE TRASH CAN MR CLINTON'S PLAN WOULD MEAN THAT THE EDUCATION DEPARTMENT OR ITS CONTRACTED SUPPLIER WAS THE ONLY GAME IN TOWN IF THE PHONE ISN'T ANSWERED WHEN YOU CALL TO GET INFORMATION ON STATUS YOU HAVE TWO RECOURSES YOU CAN CALL THE DEPARTMENT OF EDUCATION OR YOU CAN CALL YOUR CONGRESSMAN OR SENATOR MR HOUGH SAYS CONTRACTORS WILL MEET THE TERMS OF THE AGREEMENT AND NOT GO AN INCH BEYOND IF IT SAYS TURN AROUND A LETTER WITHIN FOUR DAYS YOU'LL GET A LETTER TURNED AROUND IN FOUR DAYS IF IT DOESN'T SAY TO RESPOND TO ALL QUESTIONS THAT'S AN ADDITIVE AND THE GOVERNMENT WILL HAVE TO PAY MORE TO GET THAT SERVICE FEWER DEFAULTS IS ANOTHER SELLING POINT OF THE CLINTON PLAN WITH THE FEDS SUPPOSEDLY BIRDDOGGING REPAYMENT BUT THE PROBLEM THERE HAS ALWAYS BEEN MORE WITH THE LAX RULES OF THE PROGRAM THAN WITH THE SOURCE OF THE LOAN INDEED AS CONGRESS HAS TIGHTENED THE PROCEDURES IN RECENT YEARS FOR INSTANCE BY LIMITING THE CASH THAT CAN GO OUT THE DOOR TO A TRADE SCHOOL IN THE EARLY DAYS OF A STUDENT'S ENROLLMENT DEFAULTS HAVE BEGUN TO DIMINISH HERE AGAIN MR HOUGH DOUBTS THE EFFICACY OF A NEW ORDER HE POINTS TO A REDEFINITION THAT WOULD ACCOMPANY ONE TOUTED WORKOUT SCHEME MY READING OF THE STATUTE SAYS THAT THE SECRETARY OF EDUCATION CAN COME AND SAY YOU SHALL NOW BE MAKING YOUR PAYMENTS BASED ON YOUR INCOME IF THERE'S NO INCOME THERE ARE NO PAYMENTS WOULD THAT BE A DEFAULT UNDER THIS PROGRAM NO WOULD THAT BE A DEFAULT UNDER THE CURRENT PROGRAM YOU BET OVER HALF OF THOSE WHO TAKE OUT LOANS AT FOURYEAR SCHOOLS AREN'T GRADUATED WITHIN SIX YEARS HE SAYS THEY EITHER DROP OUT OR STOP OUT AND ARE DIFFICULT TO LOCATE ABOUT 15 OF THE BORROWERS ARE NEVER FOUND AND EVEN THOSE THAT ARE MAY HAVE NOTHING MORE EFFICIENT COLLECTION PROCEDURES COULD BE GRAFTED ONTO THE EXISTING SYSTEM MR HOUGH ACKNOWLEDGES BUT DEALING WITH DEADBEATS WOULD ATTACK LESS THAN HALF OF THE DEFAULT PROBLEM WHICH IS AN ABSENCE OF WAGES TO BEGIN WITH IN ITS STUDENT LOAN PROGRAM CANADA IS STRUGGLING TO DEAL WITH MUCH THE SAME SITUATION OTHER INTERNATIONAL COMPARISONS ARE RARE BECAUSE HEAVIER TUITION SUBSIDIES FOR A MORE ELITE SET OF MATRICULANTS RATHER THAN LOANS TO THE MASSES ARE THE RULE IN MOST INDUSTRIALIZED NATIONS THE CLINTON PLAN MAY RELEGATE SALLIE MAE TO THE BUSINESS OF SERVICING THESE CREDITS THE MOST DIFFICULT CONSUMER LOAN TO COLLECT THAT THERE IS SAYS MR HOUGHAND IT IS RESPONDING OVER FIVE YEARS SALLIE MAE LOOKS TO GO FLAT OUT TO DOUBLE ITS VOLUME IN THE FOLLOWUP FIELD REGARDLESS OF FEDERAL INROADS INTO LOAN ORIGINATION SALLIE MAE EXPECTS TO FULLY PRIVATIZE ITS GOVERNMENTCHARTERED OPERATION OVER THE NEXT FEW YEARS COME WHAT MAY BUT MR HOUGH WANTS TO KEEP THE CASHFLUSH ENTERPRISE FOCUSED ON ITS CORE COLLEGE MARKET HE IS PROTECTIVE OF SALLIE MAE'S OWN AAA CREDIT RATING AND DOESN'T WANT TO TAKE ANY FLYERS IN NEW BUSINESSES ALTHOUGH WALL STREET HAS PUNISHED THE STOCK RECENTLY FOR WHAT IT SEES AS CRIMPED OPPORTUNITIES IN THE CLINTONERA STUDENTLOAN MARKET MR HOUGH RECOGNIZES THAT DIRECT LENDING BY WASHINGTON IS COMING IN THE YEARS AHEAD BUT SAYS POLITICS MAY BE ON HIS SIDE IN DELAYING THE TRANSITION THE CLINTON BILL IS LIKELY TO GET THROUGH THE HOUSE BUT ENCOUNTER TROUBLE IN THE SENATE WHERE CONSERVATIVES ARE STRONGER A PRECURSOR IN THE BUDGET BILL GOT ONLY 51 SENATE VOTES HOWEVER DUBIOUS OF SALLIE MAE IN THE PAST THE RIGHT HAS REASON TO REJOICE IN A PROSPECTIVE PRIVATIZATION AND TO JOIN IN RESISTING FULLSCALE FEDERALIZING OF AN ADMITTEDLY FLAWED BORROWING PROGRAM JUST AS IN HEALTH CARE WHERE SUBSTANTIAL FRICTIONAL COSTS ATTEND TO A PUBLIC PROGRAM ADMINISTERED PRIVATELY THE CLINTONITES IN THEIR MONUMENTAL CONCEIT BELIEVE THEY CAN RATIONALIZE THE SYSTEM INTO ONE TIDY EFFICIENT PACKAGE THEY PROBABLY LEARNED JUST HOW TO DO IT AT COLLEGE ON STUDENT LOANS 9305110086 930511 LEISURE & ARTS BOOKSHELF THE NINTENDO STORY BY ALEX KOZINSKI LATE ONE NIGHT AS I SAT UP READING ABOUT THE CONVOLUTED NEGOTIATIONS BETWEEN NINTENDO CO AND THE SOVIET GOVERNMENT THAT LED TO THE LICENSING OF TETRIS I WAS SUDDENLY OVERCOME WITH AN ODD NEED TO PLAY THE GAME I SLIPPED OUT OF BED PUSHED MY DUSTY TETRIS CARTRIDGE INTO THE GAME DECK AND LOST MYSELF AMID THE DROPPING T'S L'S SQUARES AND OTHER GEOMETRIC SHAPES THAT COMPRISE THAT MARVEL OF A VIDEO GAME NEXT I KNEW IT WAS 3 AM TETRIS AND A WIDE RANGE OF OTHER GAMES INCLUDING THE IMMENSELY POPULAR SUPER MARIO BROTHERS SERIES HAVE MADE VIDEO GAMES A STAPLE OF GLOBAL ENTERTAINMENT THE FLAGSHIP OF THIS INVASION NOT JUST INTO OUR LIVING ROOMS BUT INTO THE VERY CONCEPT OF ENTERTAINMENT IS NINTENDO WHICH HAS ACHIEVED COMMERCIAL SUCCESS BEYOND MOST PEOPLE'S WILDEST IMAGINATION GAME OVER HOW NINTENDO ZAPPED AN AMERICAN INDUSTRY CAPTURED YOUR DOLLARS AND ENSLAVED YOUR CHILDREN RANDOM HOUSE 445 PAGES 25 BY DAVID SHEFF IS ULTIMATELY LESS ABSORBING THAN TETRIS BUT NOT BY MUCH THE OPENING CHAPTER ALONE STUNS US WITH A SERIES OF STATISTICS ASTONISHING EVEN TO THOSE WHO KNOW THEIR GAME GENIES FROM THEIR POWER GLOVES IN 1991 MR SHEFF WRITES NINTENDO EARNED ABOUT 15 MILLION PER EMPLOYEE OF WHICH IT HAD 5000 SONY CORP WITH 10 TIMES AS MANY EMPLOYEES EARNED 400 MILLION LESS THAN NINTENDO IN THE EARLY 1990S HE CONTINUES NINTENDO NETTED AS MUCH AS ALL THE AMERICAN MOVIE STUDIOS COMBINED AND PROFITED MORE THAN ANY OF THEM AND MORE THAN THE THREE TELEVISION NETWORKS COMBINED AND PERHAPS A LITTLE GALLING IN 1990 THE NINTENDO MASCOT SUPER MARIO WAS MORE RECOGNIZED BY AMERICAN CHILDREN THAN MICKEY MOUSE HOW DID NINTENDO DO IT IT CERTAINLY WASN'T BECAUSE OF ANY JAPANESE INDUSTRIAL POLICY THE WORDS INDUSTRIAL POLICY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AND GOVERNMENT SUBSIDY ARE NOWHERE TO BE FOUND IN MR SHEFF'S BOOK WE SEE INSTEAD WHAT PRESIDENT BUSH USED TO CALL THE VISION THING HIROSHI YAMAUCHI NINTENDO'S STERN AND HARDDRIVING PATRIARCH SET OUT TO REINVENT AN INDUSTRY TO REDEFINE THE VERY CONCEPT OF HOME ENTERTAINMENT THROW AWAY ALL YOUR OLD IDEAS IN ORDER TO COME UP WITH SOMETHING NEW HE EXHORTED HIS ENGINEERS IN THE EARLY '80S WHEN THE HOME VIDEO GAME BUSINESS WAS UNDERGOING A SPASMODIC DEATH NINTENDO PRESSED FULL SPEED AHEAD IN DEVELOPING ITS OWN SYSTEM BASED ON TWO RATHER SIMPLE PRINCIPLES FIRST THE COMPANY FLOUTED RECEIVED WISDOM AND FOCUSED ON SOFTWARE RATHER THAN HARDWARE IT SHREWDLY FORSEEING THAT EXCITING GAMES WOULD CREATE DEMAND FOR HARDWARE WHICH IN TURN WOULD CREATE DEMAND FOR MORE QUALITY GAMES SECOND NINTENDO MAINTAINED TIGHT CONTROL OVER THE SOFTWARE KEEPING THE QUALITY HIGH AND EXTRACTING ROYALTIES FOR EVERY CARTRIDGE PLAYED ON ITS PLATFORM MOST OF THE BOOK DESCRIBES HOW NINTENDO PURSUED THESE TWO STRATEGIES WITH PITBULL DETERMINATION FIRST IN JAPAN THEN IN THE US THEN ELSEWHERE IN THE WORLD TO THE GREAT DELIGHT OF ITS SHAREHOLDERS AND TO THE FREQUENT FURY OF WOULDBE COMPETITORS INTRANSIGENT LICENSEES MAGAZINE EDITORS AND A VARIETY OF OTHER PEOPLE CONNECTED TO THE VIDEOGAME ENTERPRISE MR SHEFF HIMSELF GOT SQUEEZED BY NINTENDO'S IRON GRIP WHEN THE COMPANY REPORTEDLY RENEGED ON A PROMISE TO LET HIM USE MARIO'S FACE FOR THE BOOK COVER AFTER FINDING AN ADVANCE COPY OF THE MANUSCRIPT INSUFFICIENTLY FLATTERING THE JACKET NOW FEATURES A POSSESSEDLOOKING CHILD EVEN SO THE AUTHOR OFTEN DISPLAYS ADMIRATION FOR MR YAMAUCHI AND HIS VARIOUS LIEUTENANTS OBVIOUSLY AN ADDICTED GAME PLAYER HE SPEAKS ALMOST WITH REVERENCE OF GAMES ENSCONCED IN THE NINTENDO PANTHEONSUPER MARIO BROTHERS THE LEGEND OF ZELDA TETRIS METROIDAND DISPENSES AMUSING LORE HE RECOUNTS FOR EXAMPLE THAT SUPER MARIO WAS NAMED AFTER NINTENDO'S SEATTLE LANDLORD MARIO SEGALI MR SHEFF EXPLAINS THE UNDERLYING TECHNOLOGY IN TERMS EASILY UNDERSTOOD BY SOMEONE NOT CONVERSANT WITH COMPUTER PARLANCE THE ACCESS GRANTED TO HIM BY NINTENDO BRASS TO THE COMPANY'S CREDIT GIVES THE READER A FASCINATING INSIDER'S LOOK INTO THE NINTENDO JUGGERNAUT NOW AND AGAIN HE THROWS SOME DARTS AT THE MANAGEMENT BUT BY AND LARGE TREATS NINTENDO'S EXTENDED FAMILY WITH RESPECT ADMIRATION EVEN AFFECTION ACTUALLY IT SEEMS TO ME THAT NINTENDO'S BUSINESS TACTICS ARE UNNECESSARILY HARSH AT TIMES ITS DEDICATION TO ITS CUSTOMERS LESS THAN OVERWHELMING SOME OF NINTENDO'S MASSIVE LITIGATION MIGHT HAVE BEEN AVOIDED BY A LESS COMBATIVE ATTITUDE ITS CAVALIER REPUDIATION OF A DEAL WITH SONY IN ORDER TO EXTRACT MORE FAVORABLE TERMS IS POSITIVELY SHAMEFUL YET MR SHEFF TREATS IT AS FURTHER PROOF OF NINTENDO'S BUSINESS ACUMEN AND HE OVERLOOKS THAT SOME OF NINTENDO'S SUCCESS MAY WELL HAVE BEEN THE RESULT OF LUCK BUT ULTIMATELY YOU CAN'T BLAME MR SHEFF FOR BEING TAKEN WITH HIS SUBJECT IT'S HARD TO ARGUE WITH SUCCESS PARTICULARLY SUCCESS ON SUCH A GRAND SCALE WHEN ALL IS SAID THE NINTENDO STORY IS ABOUT THE POWER OF WILL AND THE IMPORTANCE OF VISION IT IS A STORY WORTH TAKING SERIOUSLY MR KOZINSKI IS A JUDGE ON THE US COURT OF APPEALS FOR THE NINTH CIRCUIT 9305110085 930511 WHO'S NEWS TWO SUCCESSFUL HEDGEFUND TRADERS LEAVE ROBERTSON TO FORM OWN COMPANY BY RANDALL SMITH AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK DAVID GERSTENHABER AND M BARRY BAUSANO TWO TRADERS WHO SCORED BIG PROFITS LAST YEAR FOR THE HUGE 42 BILLION HEDGE FUNDS RUN BY JULIAN H ROBERTSON JR LEFT YESTERDAY TO FORM THEIR OWN OPERATION MR GERSTENHABER 33 YEARS OLD ENGINEERED AN ESTIMATED 30 BILLION BET THAT SHORTTERM EUROPEAN INTEREST RATES WOULD FALL LAST YEAR A STRATEGY THAT CONTRIBUTED THE BULK OF A 336 GROSS 1992 TRADING GAIN IN THE FUNDS MANAGED BY MR ROBERTSON'S TIGER MANAGEMENT CORP THAT GAIN IS CALCULATED BEFORE SUBTRACTING TIGER'S SHARE OF THE PROFITS MR GERSTENHABER IS ONE OF A NEW BREED OF WALL STREET TRADERS WHO USE OPTIONS FUTURES AND OTHER DERIVATIVE INSTRUMENTS TO MAKE SOCALLED MACRO FOR MACROECONOMIC BETS ABOUT THE DIRECTIONS OF ECONOMIES AND INTEREST RATES IN EUROPE ASIA AND THE US MR ROBERTSON 60 IS A MORE TRADITIONAL STOCKPICKER DAVID HAS DONE AN EXCELLENT JOB IN BUILDING UP THE MACRO GROUP MR ROBERTSON WROTE CLIENTS IN A LETTER NOV 4 THE GROUP IS RESPONSIBLE FOR OUR RECENT PROSPERITY AND FOR THAT MATTER MOST OF OUR YEAR'S PROFITS MR BAUSANO 30 WAS THE MACRO GROUP'S HEAD TRADER MR GERSTENHABER'S EUROPEAN INTERESTRATE BET WAS BASED ON THE ASSUMPTION THAT GERMAN RATES WERE SO HIGH THAT THEY WOULD CAUSE EUROPEAN ECONOMIES TO SLOW DOWN OR TRIGGER THE BREAKUP OF THE EUROPEAN EXCHANGERATE MECHANISM OR BOTH AS IT HAPPENED BOTH EVENTS OCCURRED CAUSING SHORTTERM INTEREST RATES IN EUROPE TO FALL TIGER MANAGEMENT HAS BEEN HURT IN THE PAST 10 MONTHS HOWEVER BY BETS ON JAPANESE STOCKS AND BONDS MR ROBERTSON WHO SCORED A 569 GROSS TRADING PROFIT IN 1991 BY BETTING CORRECTLY THAT JAPANESE STOCKS WOULD FALL HAS BEEN HURT SINCE AUGUST BY MAINTAINING THAT BET EVEN AFTER THE JAPANESE MARKET BOTTOMED OUT AND THEN REBOUNDED IN MARCH AND APRIL TIGER'S ACCOUNTS FELL 4 AND 57 RESPECTIVELY PARTLY BECAUSE JAPANESE STOCKS RALLIED STRONGLY AND JAPANESE INTEREST RATES SURGED BOTH MOVING AGAINST TIGER'S BETS MR GERSTENHABER WHO MANAGED THE JAPANESE INTERESTRATE STRATEGY SQUABBLED WITH MR ROBERTSON OVER THE EXECUTION OF TRADES AIMED AT CLOSING OUT THE INTERESTRATE BET PEOPLE FAMILIAR WITH THE DISPUTE SAID AFTER NOTIFYING MR ROBERTSON YESTERDAY THAT THEY WISHED TO RESIGN EFFECTIVE JULY 1 MESSRS GERSTENHABER AND BAUSANO WERE ESCORTED OFF THE PREMISES WITHIN A FEW HOURS BY OTHER TIGER EMPLOYEES IN A STATEMENT A TIGER SPOKESMAN ATTEMPTED TO MINIMIZE THE IMPORTANCE OF THE PAIR'S ROLE SAYING IT IS BUSINESS AS USUAL AT TIGER DAVID AND BARRY WERE INVOLVED IN THE ANALYSIS AND IMPLEMENTATION AREA OF OUR MACRO EFFORT WHICH NOW REPORTS TO THE HEAD OF TIGER TRADING GIL CAFFRAY THE MACRO DECISIONMAKING HAS BEEN AND WILL CONTINUE TO BE UNDER THE AEGIS OF JULIAN ROBERTSON AND TIGER MANAGING DIRECTOR JOHN GRIFFIN MR GERSTENHABER WORKED FOR MORGAN STANLEY & CO BETWEEN 1985 AND 1991 STARTING A JAPANESE ECONOMIC TEAM AND MARKETING JAPANESE EQUITIES AND DERIVATIVES TO FOREIGN FINANCIAL INSTITUTIONS MR BAUSANO WORKED IN FIXEDINCOME TRADING AT KIDDER PEABODY & CO BETWEEN 1985 AND 1991 THEIR NEW FIRM WILL BE CALLED ARGONAUT CAPITAL MANAGEMENT 9305110084 930511 WHITE HOUSE MAY KEEP BEER OFF LIST OF SIN TAXES' FOR HEALTHCARE FUNDS BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CONFRONTED BY THE POWERFUL POLITICAL IMAGE OF JOE SIXPACK THE CLINTON ADMINISTRATION IS LEANING TOWARD EXEMPTING BEER FROM THE SIN TAXES IT WILL PROPOSE TO HELP PAY FOR ITS HEALTHCARE PACKAGE ADMINISTRATION OFFICIALS SAY THEY HAVEN'T DECIDED WHETHER TO RAISE TAXES ON ANY ALCOHOLIC BEVERAGES BUT IF THEY DO OFFICIALS SAID BEER IS LIKELY TO BE EXCLUDED BECAUSE THE PUBLIC CONSIDERS IT A DRINK OF THE WORKING CLASS BOOSTING THE BEER TAX IS MORE LIKELY TO ALIENATE PEOPLE THAN TO RAISE SIGNIFICANT AMOUNTS OF MONEY OR TO REDUCE ALCOHOL CONSUMPTION SAID ONE ADMINISTRATION OFFICIAL THE ADMINISTRATION HAS BEEN WEIGHING A NUMBER OF TAX INCREASES ON PRODUCTS CONSIDERED HEALTH HAZARDS TO RAISE MONEY FOR ITS PLAN TO EXTEND HEALTH COVERAGE TO ALL AMERICANS A TAX INCREASE ON CIGARETTES SEEMS CERTAIN OFFICIALS SAID BUT THE AMOUNT HASN'T BEEN DECIDED IN ADDITION OFFICIALS ARE MULLING WHETHER TO RAISE THE EXCISE TAX ON GUNS AND AMMUNITION SUCH A MEASURE COULD BE POLITICALLY HAZARDOUS AS IT IS SURE TO UNLEASH THE FORCE OF THE NATIONAL RIFLE ASSOCIATION AGAINST THE HEALTH PLAN THE BEER ISSUE HAS ALWAYS BEEN TRICKY DURING THE PRESIDENTIAL CAMPAIGN CANDIDATES CLINTON AND BUSH LAMBASTED ONE ANOTHER IN WARRING TELEVISION COMMERCIALS FOR RAISING TAXES ON THE MIDDLE CLASS BY BOOSTING BEER TAXES MR BUSH SIGNED A BILL DOUBLING THE FEDERAL EXCISE TAX ON BEER TO 33 CENTS A SIXPACK AS PART OF THE MASSIVE 1990 DEFICITREDUCTION LEGISLATION AND AS GOVERNOR OF ARKANSAS MR CLINTON RAISED THE STATE ALCOHOL LEVY ADDING TO THE POLITICAL PERILS IS OPPOSITION FROM HOUSE MAJORITY LEADER RICHARD GEPHARDT OF ST LOUIS THE NATION'S BEER MANUFACTURING CAPITAL WHILE REP GEPHARDT SUPPORTED DOUBLING THE BEER TAX AS PART OF THE 1990 DEFICITREDUCTION BILL A SPOKESWOMAN SAID HE THINKS ANOTHER INCREASE WOULD BE DAMAGING TO THE INDUSTRY FOR THEIR PART BEER MAKERS HAVE GONE TO GREAT LENGTHS TO PAINT THEMSELVES AS PROVIDERS OF REFRESHMENT FOR PEOPLE WHO ARE SALT OF THE EARTH AS ONE ANHEUSERBUSCH COS BRIEFING PAPER PUTS IT HIGHER TAXES ON BEER MEAN HIGHER TAXES ON MEN AND WOMEN WHO ARE WORKING HARD TO BUILD THEIR CAREERS THEIR FAMILIES AND THEIR FINANCIAL FUTURES ACCORDING TO THE PAPER WHICH IS TITLED TAXING JOE AND JANE SIXPACK NOW MORE THAN EVER AN UNFAIR APPROACH THE PAPER CLAIMS THERE ARE MORE THAN 80 MILLION BEER DRINKERS IN THE US WITH 30 MILLION CONSUMING MORE THAN ONE SIXPACK EACH WEEK IF BEER IS THE ONLY ALCOHOLIC BEVERAGE THAT ISN'T SLAPPED WITH HIGHER EXCISE TAXES WHISKEY AND WINE MAKERS WILL SURELY BE UPSET FOR NOW THE DIFFERENT INDUSTRIES ARE UNITED IN THEIR OPPOSITION TO TAX INCREASES ON ANY OF THEIR PRODUCTS AND IF BEER IS EXEMPTED MANUFACTURERS OF SPIRITS AND WINE ARE SURE TO CLAIM THEY DESERVE THE SAME TREATMENT WINE IS ENJOYED WITH FOOD AND FAMILY AND FRIENDS AND WE DON'T BELIEVE WE'RE A DETRIMENT TO ONE'S HEALTH SAID ROBERT KOCH VICE PRESIDENT FOR FEDERAL GOVERNMENT RELATIONS AT THE WINE INSTITUTE THE TRADE ASSOCIATION FOR CALIFORNIA VINTNERS THE DISTILLED SPIRITS COUNCIL SAID THAT BEER IS NO MORE WORKINGCLASS THAN HARD LIQUOR THE GROUP CITES A SURVEY BY THE SIMMONS MARKET RESEARCH BUREAU SHOWING THAT OF PEOPLE IN HOUSEHOLDS WITH INCOMES UNDER 30000 364 DRINK BEER BUT A NEARLY IDENTICAL NUMBER 355 DRINK WHISKEY SIMILARLY AMONG THOSE WHO EARN BETWEEN 30000 AND 60000 39 DRINK BEER WHILE 387 DRINK WHISKEY YOU CAN'T REALLY CALL ONE PRODUCT THE WORKING PERSON'S DRINK SAID FRED MEISTER PRESIDENT OF THE COUNCIL THEY SHOULDN'T TRY TO MAKE SOME ARTIFICIAL DISTINCTION WE SHOULD ALL BE EXCLUDED 9305110083 930511 TECHNOLOGY CD VENTURES ARE SET BY IBM BLOCKBUSTER BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP AND BLOCKBUSTER ENTERTAINMENT CORP SAID THEY ARE FORMING TWO JOINT VENTURES TO MARKET RETAIL SYSTEMS THAT COULD MAKE AND DISPENSE AUDIO COMPACT DISKS ON DEMAND THE TECHNOLOGY WHICH COULD TRANSFORM THE ECONOMICS OF THE MUSIC INDUSTRY AND OTHER BUSINESSES ALSO MAY BE USED TO MAKE AND SELL COMPUTER SOFTWARE VIDEO GAMES AND EVEN VIDEOS AS REQUESTED IT WILL BE ANNOUNCED FORMALLY TODAY OFFICIALS FROM BOTH COMPANIES SAID IBM AND BLOCKBUSTER HAD SAID EARLIER THIS YEAR THEY WERE WORKING TOWARD SUCH A MULTIMEDIA DISTRIBUTION SYSTEM NO PILOT SYSTEMS HAVE BEEN LAUNCHED YET BUT THE COMPANIES SAID THE TECHNOLOGY IS WORKING IN LABORATORIES ANALYSTS SAID THE NEW ONDEMAND METHOD OF RETAILING WILL LIKELY TAKE A COUPLE OF YEARS TO CATCH ON EVEN IF IT'S SUPPORTED BY PRODUCT PROVIDERS SUCH AS THE MAJOR RECORDING LABELS BUT BY THE LATE 1990S THEY ADDED IT COULD BE A FEATURE OF MOST MUSIC AND VIDEO STORES IF THE NEWFANGLED SYSTEMS WERE TO BECOME POPULAR AMONG RETAILERS RECORD LABELS WOULDN'T HAVE TO PRESS HUNDREDS OF THOUSANDS OF COPIES OF A MAJOR RECORDING INSTEAD MUSIC STORES WOULD MAKE MOST CDS ON THEIR OWN PREMISES ZAPPING TITLES IN FROM A HUGE CENTRAL DATABASE THAT WOULD ELIMINATE THE NEED FOR LARGE INVENTORIES SUCH SYSTEMS WOULD REQUIRE CLOSE COOPERATION WITH THE MUSIC COMPANIES THAT WOULD STOCK THE CENTRAL DATABASES WITH TITLES WE THINK IT WILL BE ECONOMICALLY COMPELLING SAID BOB CARBERRY WHO RUNS IBM'S FIREWORKS PARTNERS MULTIMEDIA BUSINESS IN THE LONG TERM IT WOULD SEEM THAT THERE ARE BENEFITS TO ALL CONCERNED SO LONG AS ALL THE PROPER LICENSES ARE SECURED AGREED DAVID LEIBOWITZ EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL OF THE RECORDING INDUSTRY ASSOCIATION OF AMERICA INC THE MAIN TRADE ASSOCIATION OF THE MUSIC INDUSTRY BUT ANALYSTS NOTED THAT MUSIC COMPANIES MIGHT BE LEERY OF A TECHNOLOGY THAT COULD IN THEORY BE USED TO MIX AND MATCH SONGS FROM DIFFERENT ALBUMS ARTISTS AND LABELS WHILE THIS COULD BE A DRAW FOR CONSUMERS IT REALLY UPSETS THE TRADITIONAL DISTRIBUTION SYSTEM SAID TIM BAJARIN OF CREATIVE STRATEGIES RESEARCH INTERNATIONAL IT'S ONE OF THE REALLY GOOD EXAMPLES OF THE DIGITAL REVOLUTION AND ALL THE CHOICE AND CUSTOMIZATION IT CAN ALLOW HE SAID WHETHER TRADITIONAL FOLKS LIKE IT OR NOT IT'S UPON THEM IBM AND BLOCKBUSTER SAID THEIR SYSTEM IS DESIGNED TO DISTRIBUTE ALBUMS IN ORIGINAL FORM SUCH A POLICY IS LIKELY TO MOLLIFY RECORD LABELS SAID NICK ARNETT PRESIDENT OF MULTIMEDIA COMPUTING CORP A CONSULTANCY BASED IN CAMPBELL CALIF BUT THE OUTCOME REMAINS TO BE SEEN IF THEY DON'T GET ONE OF THE BIG SIX RECORDING LABELS VERY SOON WE HAVE A RIGHT TO BE SKEPTICAL SAID MR ARNETT BLOCKBUSTER NOTED THAT ONE OF THE TWO NEW VENTURES NEWLEAF ENTERTAINMENT CORP ALREADY IS NEGOTIATING WITH SEVERAL RECORD LABELS ANOTHER POTENTIALLY THORNY POINT IF THE NEW METHOD BECOMES WIDESPREAD MUSIC COMPANIES COULD FIND THEMSELVES WITH EXCESS MANUFACTURING AND DISTRIBUTION CAPACITY A TYPICAL MUSIC CD WOULD TAKE ABOUT SIX MINUTES TO MAKE IBM AND BLOCKBUSTER SAID ALTHOUGH THAT TIME IS LIKELY TO SHRINK OVER THE NEXT FEW YEARS THE NEW SYSTEMS ALSO COULD PRODUCE GLOSSY PACKAGING MAKING THE FINAL PRODUCT INDISTINGUISHABLE FROM A MASSPRODUCED CD AT LEAST IN THEORY BLOCKBUSTER THE BIG VIDEORENTAL CHAIN IS MOVING QUICKLY INTO MUSIC SALES AND PLANS TO OPEN A NUMBER OF MEGASTORES THAT ALSO SELL COMPUTER SOFTWARE VIDEO GAMES AND OTHER ITEMS BECAUSE ALL THESE ITEMS CAN BE ENCODED AS DIGITAL DATA THE LANGUAGE OF ONES AND ZEROS THAT COMPUTERS UNDERSTAND THEY CAN EASILY BE TRANSMITTED ELECTRONICALLY FROM LOCATION TO LOCATION AND ARE GOOD CANDIDATES FOR THE NEW SYSTEM MOVIES STILL ARE TOO LONG FOR COMPUTERS TO HANDLE GRACEFULLY BUT THAT'S LIKELY TO CHANGE AS TECHNOLOGISTS FIND BETTER WAYS TO COMPRESS VIDEO DATA ULTIMATELY ONDEMAND SYSTEMS MAY DELIVER MOVIES MUSIC ALBUMS SOFTWARE AND VIDEO GAMES DIRECTLY TO CONSUMERS' HOMES BYPASSING STORES AND THE PROPOSED IBMBLOCKBUSTER SYSTEM ALTOGETHER BUT OFFICIALS FROM BOTH COMPANIES SAID THEIR NEW VENTURES EASILY COULD MOVE INTO HOME DELIVERY AT A LATER DATE THE COMPUTER COMPANY IS BETTING THAT SUCH MULTIMEDIA APPLICATIONS WILL FUEL A SURGE OF DEMAND FOR THE POWERFUL EQUIPMENT NEEDED TO STORE AND MANIPULATE AUDIO AND VIDEO DATA THE BOOST IS BADLY NEEDED AS IBM'S COMPUTER SALES CONTINUE TO PLUMMET THE TWO NEW JOINT VENTURES NEWLEAF AND FAIRWAY TECHNOLOGY ASSOCIATES INC BOTH WILL BE BASED NEAR BLOCKBUSTER'S HEADQUARTERS IN FORT LAUDERDALE FLA THEY WILL DRAW ON THE RESOURCES OF SOUNDSATIONAL INC A BLOCKBUSTEROWNED COMPANY THAT DEVELOPED MUCH OF THE NEW MULTIMEDIA DISTRIBUTION SYSTEM FAIRWAY WILL BUILD AND OPERATE THE SYSTEMS WHILE NEWLEAF WILL PACKAGE AND MARKET THEM FOR SPECIFIC RETAILERS AND INDUSTRIES BOTH COMPANIES WILL BE INDEPENDENT OF THEIR PARENTS IBM AND BLOCKBUSTER SAID MEANWHILE SOUNDSATIONAL WILL BE RESTRUCTURED IN A WAY THAT HASN'T YET BEEN DECIDED SAID DAVID LUNDEEN ITS PRESIDENT AND A BLOCKBUSTER EXECUTIVE IBM AND BLOCKBUSTER WOULDN'T DISCLOSE THE EXACT OWNERSHIP OF EITHER NEW COMPANY EXCEPT TO SAY THAT EACH PARENT HOLDS SIGNIFICANT BUT NOT NECESSARILY EQUAL STAKES IN BOTH VENTURES IBM'S INVESTMENTS ARE THE FIRST TO BE MADE BY DR CARBERRY'S FIREWORKS UNIT WHICH WAS ESTABLISHED IN JANUARY WITH A MISSION TO SPEND TENS OF MILLIONS OF DOLLARS ON JOINT MULTIMEDIA PROJECTS FURTHER DETAILS ABOUT THE NEW COMPANIES WEREN'T DISCLOSED SEPARATELY IBM SAID IT STARTED SHIPPING SAMPLE QUANTITIES OF ITS NEW POWERPC 601 MICROPROCESSOR WHICH WILL SERVE AS THE BRAIN OF FUTURE COMPUTERS FROM IBM APPLE COMPUTER INC AND OTHERS IBM SET PRICES FOR THE CHIP AT ABOUT THE SAME LEVEL AS THOSE OF MOTOROLA INC WHICH MADE A SIMILAR ANNOUNCEMENT LAST MONTH IBM AND MOTOROLA DESIGNED THE POWERPC TOGETHER BUT WILL COMPETE IN SELLING IT TO COMPUTER MAKERS BASED ON A SPEEDY REDUCEDINSTRUCTIONSET COMPUTING DESIGN THE CHIP WILL VIE WITH INTEL CORP'S MOREEXPENSIVE PENTIUM MICROPROCESSOR IBM WHICH TRADITIONALLY HAS SOLD CHIPS ONLY TO ITSELF WILL SELL TWO VERSIONS OF THE POWERPC 601 FOR 275 AND 380 APIECE IN LARGE QUANTITIES IBM BASED IN ARMONK NY ALSO INTRODUCED NEW MODELS OF ITS PS/1 PERSONAL COMPUTER DESIGNED FOR HOMES HOME OFFICES AND SMALL BUSINESS AND THREE NEW NOTEBOOKSIZED PCS 9305110082 930511 POLITICS & POLICY SENATORS UNCOMFORTABLE AT BEING ASKED TO PENALIZE PACKWOOD FOR LIES TO PRESS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE RULES COMMITTEE ENMESHED IN THE POLITICAL TROUBLES OF SEN BOB PACKWOOD CAME FACETOFACE WITH A FORBIDDING QUESTION DOES LYING TO THE MEDIA CONSTITUTE ELECTION FRAUD AN ATTORNEY FOR A GROUP OF PACKWOOD OPPONENTS INSISTS THAT IT DOES IN THE CASE OF THE OREGON REPUBLICAN WHO WON A FIFTH TERM IN NOVEMBER AFTER DENYING TO REPORTERS CHARGES THAT HE HAD SEXUALLY HARASSED WOMEN BUT AN ATTORNEY FOR MR PACKWOOD WHO APOLOGIZED AFTER THE ELECTION FOR HIS BEHAVIOR TOWARD THE WOMEN DENOUNCED THE IDEA AS A RADICAL DEPARTURE THAT WOULD TURN ELECTIONS INTO A GIANT GAME OF GOTCHA THE ARGUMENT RIVETED THE COMMITTEE'S ATTENTION BECAUSE THE IMPLICATIONS COULD BE CONSIDERABLY MORE FARREACHING THAN ALL OF THE REFORMS INCLUDING CAMPAIGN FINANCE AND LOBBYING THAT GOODGOVERNMENT ADVOCATES ARE PUSHING AS A WAY TO CLEAN UP WASHINGTON NO MEMBER OF CONGRESS IS LIKELY TO BE EAGER TO HAVE PREELECTION STATEMENTS DISSECTED LATER AS A TEST OF FITNESS TO ASSUME OFFICE NOR IS ANY PRESIDENT PRESIDENT CLINTON RECENTLY TOOK A POLITICAL POUNDING FOR BREAKING VARIOUS CAMPAIGN PLEDGES IN HIS FIRST 100 DAYS IN OFFICE KATHERINE MEYER THE LAWYER FOR THE GROUP OF OREGONIANS CHALLENGING MR PACKWOOD ARGUED THAT HIS STATEMENTS AMOUNTED TO FAR MORE THAN GARDENVARIETY CAMPAIGN DECEPTION BY BOTH DENYING THE CHARGES AND CHALLENGING THE CREDIBILITY OF HIS ACCUSERS SHE CONTENDED THE VETERAN SENATOR COMMITTED AN ACT OF POLITICAL CORRUPTION THAT STOLE THE NOV 3 ELECTION AND RAISES THE QUESTION OF WHETHER THE SENATE SHOULD NOW UNSEAT HIM MR PACKWOOD INTERFERED WITH THE ELECTORAL PROCESS BY LYING TO THE PUBLIC THROUGH THE PRESS MS MEYER SAID TO SHOW THAT HIS STATEMENTS HAD TILTED THE ELECTION RESULTS SHE CITED PUBLIC OPINION POLLS SHOWING A SHARP DIP IN HIS POPULARITY AFTER THE SEXUAL HARASSMENT CHARGES WERE PUBLISHED LUDICROUS COUNTERED JAMES FITZPATRICK THE SENATOR'S LAWYER TO CHALLENGE THE LEGITIMACY OF AN ELECTION BASED ON THE ACCURACY OF A CANDIDATE'S STATEMENTS HE SAID WOULD CLEAR THE WAY FOR ENDLESS FACTFINDING TRIALS THAT COULD DELVE INTO SUCH PERSONAL MATTERS AS DRINKING HABITS RELIGION AND SEXUAL CONDUCT MR FITZPATRICK'S ARGUMENTS APPEARED TO STRIKE A NERVE WITH COMMITTEE MEMBERS WHO HAVE HAD THEIR OWN PAINFUL EXPERIENCES WITH THE PRESS AND OPINION POLLS I WAS GOING TO WIN NEW HAMPSHIRE BY 20 POINTS DECLARED SENATE MINORITY LEADER ROBERT DOLE WHO LOST THAT 1988 PRIMARY AND WITH IT THE GOP NOMINATION TO GEORGE BUSH SEN JOHN WARNER R VA SAID WE'D ALMOST HAVE TO ESTABLISH A PERMANENT COMMITTEE TO HEAR AIR POSTELECTION COMPLAINTS EVEN SEN DIANNE FEINSTEIN D CALIF THE LONE WOMAN ON THE COMMITTEE SAID MS MEYER'S CONTENTION CLEARLY OPENS A PANDORA'S BOX FOR THIS BODY CHASTENED BY THE RECENT EXPERIENCE OF THE SENATE JUDICIARY COMMITTEE WHICH WAS HARSHLY CRITICIZED FOR APPEARING INSENSITIVE TO ANITA HILL'S ALLEGATIONS AGAINST CLARENCE THOMAS COMMITTEE MEMBERS MADE CLEAR THEY WEREN'T JUDGING THE SUBSTANCE OF THE CHARGES AGAINST MR PACKWOOD THOSE ARE THE SUBJECT OF A SEPARATE SENATE ETHICS PANEL INQUIRY SEN WENDELL FORD D KY CHAIRMAN OF THE RULES COMMITTEE SAID ITS JOB IS TO FOCUS ON THE LEGAL ISSUES SURROUNDING THE SENATE'S AUTHORITY TO CHALLENGE THE ELECTION RESULTS THE COMMITTEE WILL DECIDE WHETHER TO PURSUE THE MATTER AT AN UNSPECIFIED FUTURE MEETING 9305110081 930511 OTC FOCUS RISING BOND PRICES LIFT THE MARKET HEALTHCARE STOCKS CONTINUE TO CLIMB BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RISING BOND PRICES LIFTED THE OVERTHECOUNTER MARKET WITH HEALTHCARE STOCKS CONTINUING TO CLIMB DESPITE SOME LATEAFTERNOON SLIPPAGE THE NASDAQ COMPOSITE INDEX FINISHED AHEAD 138 OR 020 AT 68282 ADVANCING STOCKS OUTNUMBERED DECLINERS 1381 TO 1272 ON TOTAL VOLUME OF 2065 MILLION SHARES DOWN FROM FRIDAY'S 2261 MILLION IN THE MORNING AS STOCKS ROSE THE BEARS KNOWN AS SHORTSELLERS WHO BET ON STOCKS TO DECLINE BAILED OUT OF THEIR POSITIONS BY PURCHASING SHARES SENDING THE MARKET HIGHER SAID LOUIS TODD HEAD OF EQUITY TRADING AT JC BRADFORD & CO HE SAID JC BRADFORD HAS INCREASED ITS RECOMMENDED INVESTMENT POSITION TO 65 STOCKS FROM 60 LOWERING ITS SUGGESTED CASH HOLDING TO 10 FROM 15 STRENGTH IN THE HEALTHCARE AND TECHNOLOGY STOCKS HELPED THE MARKET HOLD ITS GROUND EVEN WHEN THE PROFIT TAKING HIT TOWARD THE END OF THE DAY SAID LANCE ZIPPER HEAD OF OTC TRADING AT KIDDER PEABODY & CO AMONG MEDICALRELATED STOCKS CHIRON JUMPED 1 TO 57 1/2 GENZYME ROSE 1 1/8 TO 40 3/8 US HEALTHCARE CLIMBED 7/8 TO 46 5/8 AND MEDCO CONTAINMENT SERVICES POPPED UP 1 3/4 TO 30 1/2 BUT MEDIMMUNE TUMBLED 2 1/2 TO 15 1/4 THE GAITHERSBERG MD BIOTECHNOLOGY COMPANY POSTED A FIRSTQUARTER LOSS OF 22 CENTS A SHARE AGAINST EARNINGS OF ONE CENT A SHARE A YEAR EARLIER MICROSOFT LEAPED 2 1/8 TO 89 1/8 ALEX BROWN & SONS ANALYST MARY MCCAFFREY UPGRADED HER RATING TO STRONG BUY FROM BUY MS MCCAFFREY SAID SHE DIDN'T CHANGE HER EARNINGS ESTIMATE OF 310 A SHARE FOR THE FISCAL YEAR ENDING IN JUNE IN FISCAL 1992 MICROSOFT EARNED 241 A SHARE LOTUS EASED 1/8 TO 31 7/8 THE CAMBRIDGE MASS COMPANY SAID IT UNVEILED ITS 123 RELEASE 4 FOR WINDOWS A NEW SPREADSHEET DESIGNED TO HELP MAXIMIZE THE PRODUCTIVITY OF INDIVIDUALS AND WORK GROUPS LOTUS SAID THE PRODUCT IS UNDERGOING FINAL TESTING WITH CUSTOMERS AND WILL BE AVAILABLE IN THE US IN JUNE SECOR BANK SURGED 3 1/4 TO 17 3/4 ON FRIDAY THE BIRMINGHAM ALA COMPANY SAID IT RECEIVED AN UNSOLICITED MERGER PROPOSAL FROM A FINANCIAL INSTITUTION SECOR AGREED LAST YEAR TO BE ACQUIRED BY UNION PLANTERS CORP A BANK HOLDING COMPANY IN MEMPHIS TENN FOR 35 MILLION IN STOCK BUT THE MERGER DISCUSSIONS WERE STALLED BY COMPLICATIONS INVOLVING GOVERNMENT OWNERSHIP OF SECOR PREFERRED STOCK SECOR DECLINED TO IDENTIFY THE RECENT SUITOR AURA SYSTEMS SLIPPED 3/4 TO 5 THE EL SEGUNDO CALIF COMPANY SAID IT IS IN NEGOTIATIONS TO ACQUIRE MATERIAL ASSETS OUTSIDE THE US THE COMPANY SAID IT MADE THE ANNOUNCEMENT IN RESPONSE TO NUMEROUS QUESTIONS RAISED WITH RESPECT TO THE SIGNIFICANT INCREASES OVER THE PAST SEVERAL DAYS IN THE PRICE AND TRADING VOLUME OF ITS STOCK ONE MILLION AURA SHARES WERE TRADED YESTERDAY MORE THAN SIX TIMES NORMAL VOLUME MCI COMMUNICATIONS FINISHED UNCHANGED AT 48 3/4 THE GIANT LONG DISTANCE CARRIER SAID IT WON TWO CONTRACTS VALUED AT A TOTAL OF MORE THAN 30 MILLION TO PROVIDE MCI VNET VOICE SERVICE AND HYPERSTREAM FRAME RELAY DATA SERVICE TO CONGRESS ALEXANDER ENERGY SLID 1/8 TO 6 1/2 THE OKLAHOMA CITY COMPANY REPORTED A FIRSTQUARTER LOSS OF 14 CENTS A SHARE WIDENED FROM A LOSS OF FIVE CENTS A YEAR EARILER ALEXANDER ENERGY EXPLORES FOR AND PRODUCES OIL AND GAS HALO INDUSTRIES FELL 1/4 TO 5 1/2 THE SKOKIE ILL COMPANY SAID IT AGREED IN PRINCIPLE TO ACQUIRE A PRIVATELY HELD MIDWEST ADVERTISING SPECIALTY COMPANY WITH ANNUAL REVENUE OF 3 MILLION TO 5 MILLION TERMS WEREN'T DISCLOSED HDR POWER SYSTEMS ROSE 3/4 TO 2 3/4 ON FRIDAY THE HILLIARD OHIO COMPANY SAID IT SIGNED A DEFINITIVE AGREEMENT TO BE ACQUIRED BY SOLIDSTATE CONTROLS WITH HDR SHAREHOLDERS GETTING 325 A SHARE IN CASH BASED IN COLUMBUS OHIO SOLIDSTATE IS A CLOSELY HELD MAKER OF UNINTERRUPTIBLE POWER SYSTEMS FOR INDUSTRIAL AND COMMERCIAL USE SOMATOGEN JUMPED 1 1/4 TO 15 1/2 THE BOULDER COL COMPANY SAID IT HAS RESOLVED A LONGSTANDING DISPUTE WITH WARRANT HOLDERS AND THE RESOLUTION OF THE DISPUTE WILL HAVE NO MATERIAL IMPACT ON SOMATOGEN THE BIOTECHNOLOGY COMPANY DEVELOPS HUMAN BLOOD SUBSTITUTE PRODUCTS IN ADDITION SOMATOGEN AND NEXAGEN SAID THEY HAVE SIGNED A COLLABORATIVE RESEARCH PACT TO DEVELOP RECOMBINANT HUMAN HEMOGLOBIN AS A DRUG DELIVERY PLATFORM TO ENHANCE THE PLASMA HALFLIFE OF NEXAGEN'S HIGHAFFINITY NUCLEIC ACID LIGANDS 9305110080 930511 IT SEEMS SOME FOLKS WOULD SIMPLY KILL FOR A NICE MOREL PROFITEERS AND COMMON THUGS TRASH THE BUCOLIC PASTIME OF MUSHROOM GATHERING BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL ROGUE RIVER ORE IT IS JUST PAST SUNRISE DEEP IN THE WOODS BUT DOUGLAS DUSENBERRY A PROFESSIONAL WILD MUSHROOM PICKER HAS NO TIME TO ENJOY THE NEW DAY DAWNING AROUND HIM MR DUSENBERRY IS ALREADY SWEATY AND SMUDGED FROM HEAD TO TOE AFTER LUGGING HIS 20GALLON BUCKET UP AND DOWN BURNEDOVER HILLSIDES WHERE SOME OF THE FINEST FUNGI GROW HE IS ALSO A BIT NERVOUS A NEARBY LANDOWNER NO FRIEND OF MUSHROOM PICKERS IS INTERMITTENTLY FIRING SHOTS INTO THE AIR TO KEEP MR DUSENBERRY AND HIS ILK AT BAY BUT MOST OF ALL HE IS FRUSTRATED PEOPLE SAY THE WOODS TALK TO YOU MR DUSENBERRY GRUMBLES AS HE SCANS THE GROUND RIGHT NOW WHAT THE WOODS ARE SAYING TO ME IS THAT THIS PLACE HAS BEEN PICKED OVER MIGHTY HARD WILD MUSHROOM GATHERING USED TO BE A PEACEFUL PASTIME MOSTLY RESERVED FOR WEEKENDERS WITH A TASTE FOR THE EXOTIC AND ENOUGH TIME TO MEANDER THROUGH THE PACIFIC NORTHWEST THE COUNTRY'S MUSHROOM GATHERING HUB PRIME MUSHROOM SITES WERE KEPT SECRET AND THEIR LOCATION PASSED DOWN FROM GENERATION TO GENERATION FIFTEEN YEARS AGO MY WIFE AND I HAD 100 SQUARE MILES TO OURSELVES SAYS RICHARD SIEGER WHO HEADS THE 1000MEMBER PUGET SOUND MYCOLOGICAL SOCIETY IN SEATTLE NO MORE BIG MUSHROOM DEALERS AND GOVERNMENT OFFICIALS ESTIMATE THAT UP TO 50 MILLION WILL CHANGE HANDS IN THE WOODS THIS YEAR MR DUSENBERRY A NATIVE SAYS HE HAS MADE 1000 OR MORE ON GOOD DAYS HIS COUSIN MUSHROOM BUYER DONNA SILVA SAYS SHE PAID OUT MORE THAN 200000 TO PICKERS IN THE AREA LAST YEAR SOME OF THESE EDIBLE MUSHROOMS NOW FETCH NEARLY 100 A POUND WITH EMPLOYMENT TANKING IN NORTHWEST TIMBER TOWNS LIKE ROGUE RIVER AND HEAVY IMMIGRATION FROM SOUTHEAST ASIA THE WOODS ARE FILLED THESE DAYS WITH A NEW AND VERY DIFFERENT BREED OF MYCELIUM ENTHUSIAST MUSHROOM PICKERS LIKE MR DUSENBERRY NOW TRAVEL IN HIGHLY MECHANIZED PACKS ROVING FROM NORTHERN CALIFORNIA TO ALASKA BEGINNING IN APRIL AND CONTINUING UNTIL THE SNOW FLIES IN LATE FALL SWARMS OF PICKERS WILL MAKE A CIRCUIT OF FORESTS BLACKENED BY LAST FALL'S BIG FIRES WHICH LEAVE BEHIND THE CARBONRICH SOIL THAT MUSHROOMS CRAVE A BIG PATCH OF BURNED FEDERAL LAND IN OREGON OR WASHINGTON CAN DRAW MORE THAN A THOUSAND COMMERCIAL PICKERS MANY EQUIPPED WITH FOURWHEELDRIVE VEHICLES MECHANICAL TRENCHERS AND CITIZENBAND RADIOS TO LEARN WHAT MUSHROOM BUYERS ARE OFFERING THE ONSLAUGHT OF COMMERCIAL MUSHROOM PICKERS IN THE PAST FIVE YEARS HAS TRASHED MANY OF THE BEST MUSHROOM SITES AND COULD RUIN FUTURE HARVESTS RECREATIONAL MYCOLOGISTS COMPLAIN WE'RE LIKE THE LITTLE KIDS AT AN EASTEREGG HUNT SAYS MAGGIE ROGERS EDITOR OF MUSHROOM A MYCOLOGISTS' MAGAZINE CIRCULATION 1600 PUBLISHED IN PORTLAND ORE THE BIG KIDS COME THROUGH WITH THEIR BASKETS AND THERE'S NOTHING LEFT FOR US LAWENFORCEMENT OFFICIALS AREN'T HAPPY EITHER MANY PICKERS NOW CARRY GUNS OSTENSIBLY SO THEY CAN COMMUNICATE WITH GUNFIRE IN THE DEEP WOODS RANGERS IN FEDERAL FORESTS HERE IN OREGON ROUTINELY DON FLAK JACKETS WHEN THEY PATROL HEAVILYTRAFFICKED MUSHROOM SITES THIS HAS BECOME A BIGMONEY HIGHLY COMPETITIVE BUSINESS SAYS JAMES MCNELLIS UNDERSHERIFF OF GRANT COUNTY A PRIME MUSHROOM AREA IN EASTERN OREGON PEOPLE STAKE OUT A GOOD MUSHROOM PICKING SPOT AND THEY FIGHT TO KEEP IT TWO YEARS AGO GRANT COUNTY WITH A POPULATION OF ONLY 7900 SCATTERED OVER 4500 SQUARE MILES LOGGED ITS FIRST DRIVEBY SHOOTING AFTER MUSHROOM PICKERS BEGAN BATTLING FOR SITES IN THE MALHEUR NATIONAL FOREST MR MCNELLIS SAYS GRANT COUNTY AUTHORITIES TWO YEARS EARLIER FOUND A CAR BELONGING TO A PICKER RIDDLED WITH BULLET HOLES AND ABANDONED IN THE FOREST AND LAST YEAR A CAMBODIAN IMMIGRANT CARRYING A LOADED 45CALIBER PISTOL IN A SHOULDER HOLSTER WAS GUNNED DOWN WHILE PICKING IN THE WINEMA NATIONAL FOREST IN SOUTHERN OREGON THE KILLING HASN'T BEEN SOLVED BUT POLICE SAY THE PICKER'S MUSHROOMS WERE STOLEN THERE ARE SOME VERY TOUGH PEOPLE OUT THERE SHOOTING AT EACH OTHER BREAKING INTO CARS AND ROBBING PEOPLE SAYS MATTHEW BRIGGS OWNER OF CASCADE MUSHROOM CO A PORTLAND ORE COMPANY THAT IS THE NATION'S LARGEST WILD MUSHROOM DEALER MR BRIGGS SAYS MANY OF HIS INDEPENDENT BUYERS HAVE BEEN ROBBED AT GUNPOINT LAST FALL HE SAYS A PICKER APPROACHED ONE BUYER IN PACKWOOD WASH STUCK A GUN IN HIS FACE AND DEMANDED THE DEALER JACK UP THE PRICE HE WAS OFFERING FOR MUSHROOMS DESPITE SUCH PROBLEMS MR BRIGGS AND OTHERS SAY COMMERCIAL PICKING OF WILD MUSHROOMS HAS BOOMED SINCE HE STARTED DEALING IN THE MID1980S THOUGH THE US MARKET FOR WILD MUSHROOMS IS MUCH SMALLER THAN THE 665 MILLION MARKET FOR THEIR CULTIVATED COUSINS SOARING DEMAND OVERSEAS HAS CREATED A SIZABLE AND OFTEN VOLATILE INTERNATIONAL WILD FUNGUS TRADE BY MIDMAY THE SPRING MOREL'S PEAK SEASON ALSO KNOWN AS THE MUSHROOM FLUSH MR BRIGGS'S SMALL MUSHROOMCOLORED PLANT IN PORTLAND WILL BE HANDLING SOME 10000 POUNDS OF FUNGI DAILY FROM DOZENS OF BUYERS IN CALIFORNIA OREGON AND WASHINGTON ABOUT A DOZEN SMALLER PROCESSORS ARE IN PORTLAND SAN FRANCISCO SEATTLE AND VANCOUVER BRITISH COLUMBIA MOST OF THE MORELS UGLY AND SPONGY BUT TASTY LITTLE FUNGI THAT FAVOR THE SOIL IN RECENTLY BURNED FORESTS WILL END UP IN FANCY GROCERY STORES AND RESTAURANTS IN THE US AND EUROPE FUNNELSHAPED CHANTERELLES WHICH SPROUT HERE IN MIDSUMMER GO MOSTLY TO EUROPE MATSUTAKES A FALL MUSHROOM FOUND THROUGHOUT THE PACIFIC NORTHWEST GO ALMOST EXCLUSIVELY TO JAPAN WHERE ESPECIALLY FINE ONES HAVE BEEN REPORTED TO SELL FOR SEVERAL HUNDRED DOLLARS EACH THE JAPANESE APPETITE FOR THE MATSUTAKE JAPANESE FOR PINE MUSHROOM HELPS PICKERS PULL IN AS MUCH AS 95 A POUND FOR THE SPICYSCENTED MUSHROOMS HERE IN THE WOODS MR DUSENBERRY SEEMS A LONG WAY FROM THE WORLD OF MUSHROOM HIGH ROLLERS A TWOPACKADAY SMOKER THE 42YEAROLD PANTS AS HE LABORS UP AND DOWN THE STEEP HILLSIDES SEARCHING FOR A SPOT THAT HASN'T ALREADY BEEN PICKED TRUCKS STUFFED WITH MORE PICKERS KEEP GRINDING UP THE LOGGING ROAD AS THE MORNING DRAGS ON MR DUSENBERRY SENSIBLY AVOIDS THE REMAINING MUSHROOM SITES NEAR THE ANGRY LANDOWNER'S SPREAD I'M INTIMIDATED BY GUNFIRE HE SAYS BY 10 AM HE QUITS DISGUSTED BY THE CROWDS IF LOCAL PRICES HOLD UP MR DUSENBERRY WILL GET ABOUT 6 A POUND FOR HIS BUCKET OF MORELS A BIT MORE THAN 100 FOR FOUR HOURS OF HARD PICKING THAT'S NOT BAD BUT MR DUSENBERRY AND OTHER PROFESSIONALS COMPLAIN THAT MUSHROOM PICKERS ARE PROLIFERATING MUCH FASTER IN THE WOODS THAN THE MUSHROOMS TO KEEP COMPETITORS FROM FOLLOWING HIM TO EACH NEW FIND HE SAYS HE CODES HIS CB RADIO MESSAGES SHIFTS VEHICLES AND CAREFULLY COVERS HIS TRACKS IN THE WOODS MUSHROOM PICKING HAS GOTTEN TO THE POINT HE SAYS WHERE PRETTY SOON WE'LL BE OUT PICKING IN THE MOONLIGHT TO AVOID THE CROWDS 9305110079 930511 ENTERPRISE FIRM'S PROFIT IS GENERATED BY ENERGY EFFICIENCY CHAOS ESOURCE SELLS CONSUMERS ADVICE ABOUT THE PUZZLING PLETHORA OF PRODUCTS BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL E SOURCE INC IS PRODUCING ORDERS OUT OF CHAOS THE BOULDER COLO FIRM IS CAPITALIZING ON HEADACHES CAUSED BY THE BOOMING SUCCESS OF THE ENERGYEFFICIENCY INDUSTRY PROSPERITY HAS BROUGHT A PROLIFERATION OF EQUIPMENT AND MANUFACTURERS MANY OF THEM LITTLEKNOWN SMALL FIRMS FOR INSTANCE TWO DOZEN CONCERNS NOW PRODUCE MORE THAN 400 MODELS OF COMPACT FLUORESCENT LIGHT BULBS BUT IN SUCH A CROWDED FIELD THERE'S ALWAYS ROOM FOR ONE MORE A COMPANY SUCH AS E SOURCE WHICH MAKES SENSE OUT OF THE CONFUSING ARRAY OF NEW ENERGYEFFICIENT PRODUCTS AND SERVICES E SOURCE PROMOTES ITS EXPERTISE AT SEPARATING THE GOOD FROM THE BAD WITH THE NEW COMPACT FLUORESCENT LIGHT BULBS FOR INSTANCE THE FIRM DISCOVERED THAT POWER SURGES FROM ONE BULB CAUSED A NEARBY TELEVISION SET TO CHANGE CHANNELS JAMES NEWCOMB E SOURCE PRESIDENT SAYS THE CONCERN EXPECTS REVENUE OF ABOUT 15 MILLION THIS YEAR ITS FIRST FULL YEAR OF OPERATION HE DECLINES TO DISCUSS PROFITABILITY EXCEPT TO SAY WE ARE AHEAD OF OUR BUSINESS PLAN E SOURCE HAS MORE THAN 200 CLIENTS INCLUDING SEVERAL DOZEN UTILITIES FOR A FEE RANGING TO AS MUCH AS 22000 A YEAR EACH CLIENT RECEIVES E SOURCE REPORTS AND OTHER PUBLICATIONS PLUS ACCESS TO THE COMPANY'S 17MEMBER PROFESSIONAL STAFF WE CAN'T AFFORD TO KEEP UP ON EVERY NEW LIGHT BULB OR VARIABLESPEED MOTOR SAYS CHARLES BAYLESS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TUCSON ELECTRIC POWER CO AN E SOURCE CLIENT ONE RECENT E SOURCE REPORT REVIEWED THE GREENPLUG MADE BY GREEN TECHNOLOGIES INC A SMALL MANUFACTURER IN BOULDER THE DEVICE SOLD BY RETAILERS FOR ABOUT 35 IS A TYPE OF VOLTAGE REGULATOR THAT REDUCES ELECTRICITY USE BY A REFRIGERATOR OR OTHER HOME APPLIANCE WHILE CONCLUDING THAT THE GREENPLUG IS A LEGITIMATE ENERGYSAVING DEVICE E SOURCE ALSO FOUND THAT IT WAS RELATIVELY INEFFECTIVE WHEN USED WITH APPLIANCES OPERATING AT LOW VOLTAGES THE 13PAGE E SOURCE REPORT BROUGHT OUT THE LIMITATIONS OF THE GREENPLUG AND WILL HELP ONTARIO HYDRO DECIDE WHETHER TO OFFER CUSTOMERS A REBATE FOR BUYING THE DEVICE SAYS MICHAEL MCGEE AN ENERGYEFFICIENCY MANAGER FOR THE BIG CANADIAN UTILITY DESPITE E SOURCE'S CAVEATS THE MAKER OF GREENPLUG ALSO WAS SATISFIED ALL OF THE UTILITIES HEARD ABOUT US FROM E SOURCE AND SOME WANT MORE INFORMATION SAYS PETER LAEHY EXECUTIVE VICE PRESIDENT OF GREEN TECHNOLOGIES E SOURCE TYPIFIES THE ENTREPRENEURIAL ENDEAVOR THAT BUILDS UPON OTHER ENTERPRISES' SUCCESSES IN A NEW AND FASTGROWING FIELD OTHER ENTREPRENEURS ARE ALSO CARVING OUT NICHES IN THE EMERGING ENERGYEFFICIENCY BUSINESS FOR INSTANCE BARAKAT & CHAMBERLIN INC AN OAKLAND CALIF CONSULTING FIRM STARTED A UNIT IN 1991 THAT PROVIDES FLEDGLING ENERGYEFFICIENCY FIRMS WITH MARKETING AND BUSINESSDEVELOPMENT ADVICE SUCH SOCALLED SECONDWAVE ENTREPRENEURS REQUIRE MANY OF THE SAME SKILLS AND EXPERIENCE AS FIRSTWAVE INVENTORS AND PRODUCT MARKETERS BUT THE ULTIMATE SUCCESS OF A FIRM SUCH AS E SOURCE WILL DEPEND AS MUCH ON ITS REPUTATION FOR INDEPENDENCE AS ITS EXPERTISE THAT CAN POSE PROBLEMS E SOURCE CREATES A POTENTIAL CONFLICT OF INTEREST IN PREPARING REPORTS BECAUSE IT SELLS MEMBERSHIPS TO MANUFACTURERS E SOURCE OFFICIALS SAY THAT SUCH MEMBERSHIPS SUPPLY REVENUE AND PROVIDE A MEANS TO KEEP ABREAST OF THE LATEST EQUIPMENT E SOURCE ALREADY HAS CLASHED WITH ONE MANUFACTURER HOWEVER HYSAVE INC OF PORTLAND ORE COMPLAINED BITTERLY WHEN AN E SOURCE REPORT CRITICIZED ITS NEW SYSTEM THAT CUTS ELECTRICITY USE IN INDUSTRIAL AND COMMERCIAL REFRIGERATORS E SOURCE NOW IS DOING A MORE EXTENSIVE REPORT ABOUT THE DEVICE RUSS SMITH HYSAVE'S VICE PRESIDENT SAYS HE IS QUITE PLEASED WITH A DRAFT OF THE REVISED REPORT MICHAEL SHEPARD AN E SOURCE VICE PRESIDENT SAYS THE HYSAVE SYSTEM USES BASICALLY SOUND TECHNOLOGY BUT ITS ENERGY SAVINGS ARE SOMETIMES LESS THAN THE MANUFACTURER CLAIMS THE NEW REPORT WILL RECOMMEND THAT UTILITIES TEST THE SYSTEM FURTHER TO HELP PROTECT ITS REPUTATION FOR OBJECTIVITY E SOURCE WON'T SELL BULK REPRINTS OF ITS REPORTS WHICH COULD BE USED IN PRODUCT PROMOTIONS THAT POLICY HAS ANGERED SOME CLIENTS SAYS BRADLEY DAVIDS AN E SOURCE VICE PRESIDENT NOTING THAT ONLY ABOUT TWO DOZEN OF ITS 200PLUS CLIENTS ARE MANUFACTURERS MR DAVIDS SAYS NO SINGLE CLIENT HAS ENOUGH FINANCIAL CLOUT TO INFLUENCE E SOURCE POLICY E SOURCE CAME TO LIFE IN SEPTEMBER BUT ITS ROOTS GO BACK TO 1986 WHEN IT BEGAN AS COMPETITEK AN ARM OF THE NONPROFIT ROCKY MOUNTAIN INSTITUTE IN OLD SNOWMASS COLO AMORY LOVINS AND HIS WIFE HUNTER STARTED THE INSTITUTE TO PROMOTE THE EFFICIENT USE OF ENERGY AND OTHER RESOURCES COMPETITEK PERIODICALLY ISSUED ENCYCLOPEDIC REPORTS ON SUBJECTS SUCH AS ENERGYEFFICIENT LIGHTING AND ELECTRIC MOTORS MANY UTILITIES BEGAN BUYING ITS REPORTS THE LOVINS AND OTHER INSTITUTE OFFICIALS SAW AN ENTREPRENEURIAL OPPORTUNITY THE VENTURE'S FOUNDERS SAY E SOURCE HAS BETTER GROWTH POTENTIAL AS A FORPROFIT FIRM WITH THE CONTROLLING STOCK OWNERSHIP HELD BY THE INSTITUTE IT ALREADY HAS TAPPED PRIVATE INVESTORS FOR EXPANSION CAPITAL STOCK INCENTIVES ARE BEING USED TO LURE EXECUTIVES AND THE NUMBER OF STAFF MEMBERS HAS MORE THAN TRIPLED DURING THE PAST YEAR INSTITUTE OFFICIALS HOPE E SOURCE DIVIDENDS EVENTUALLY WILL HELP FINANCE INSTITUTE ACTIVITIES 9305110078 930511 BUSINESS BRIEF MERISEL INC FIRSTQUARTER NET ROSE 53 TO A RECORD 64 MILLION MERISEL INC EL SEGUNDO CALIF SAID IT POSTED RECORD FIRSTQUARTER PROFIT ON SHARPLY INCREASED SALES PROFIT ROSE 53 TO 64 MILLION OR 21 CENTS A SHARE FROM 41 MILLION OR 16 CENTS A SHARE A YEAR EARLIER THE NUMBER OF AVERAGE SHARES OUTSTANDING ROSE TO 303 MILLION FROM 264 MILLION A YEAR EARLIER SALES JUMPED 42 TO 6925 MILLION FROM 4871 MILLION THE DISTRIBUTOR OF COMPUTER HARDWARE AND SOFTWARE SAID A DECLINE IN GROSS MARGINS TO 86 OF SALES IN THE LATEST QUARTER FROM 95 A YEAR EARLIER WAS OFFSET BY A REDUCTION IN OPERATING EXPENSES TO 63 OF SALES FROM 72 9305110077 930511 INTERNATIONAL BRIEF CIE GENERALE DES EAUX SERVICE/CONSTRUCTION GROUP SAYS 1992 PROFIT ROSE 12 PARISBASED DIVERSIFIED MUNICIPAL SERVICE AND CONSTRUCTION GROUP CIE GENERALE DES EAUX SAID 1992 NET INCOME ROSE 12 TO 291 BILLION FRANCS 155 MILLION FROM 261 BILLION FRANCS DESPITE A 944 MILLION FRANC EXCEPTIONAL LOSS MAINLY FROM REAL ESTATE THE PROFIT FIGURE WAS IN LINE WITH CHAIRMAN GUY DEJOUANY'S PREDICTION LAST YEAR REVENUE ROSE 63 TO 1434 BILLION FRANCS FROM 1349 BILLION FRANCS GENERALE DES EAUX HAD ANNOUNCED A 43 FRANC NET DIVIDEND FROM 41 FRANCS FOR 1991 GENERALE DES EAUX WHOSE ACTIVITIES INCLUDE WATER DISTRIBUTION ELECTRICITY GENERATION MUNICIPAL WASTE DISPOSAL REAL ESTATE AND CONSTRUCTION SAID LOSSES FROM CONSTRUCTION AND RELATED PROVISIONS WERE SUBSTANTIAL BUT WERE LARGELY OFFSET BY PROFITS FROM REAL ESTATE DEVELOPMENT ACTIVITIES AND ASSET SALES 9305110076 930511 WESTERN UNION OFFERS LONGDISTANCE CARDS TARGETED AT THE POOR UPPER SADDLE RIVER NJ WESTERN UNION FINANCIAL SERVICES INC STARTED DISTRIBUTING LONGDISTANCE TELEPHONE CARDS TO CONSUMERS WITH LITTLE MONEY OR NO CREDIT BUT THE CHARGES ARE STEEP THE UNIT OF THE FINANCIALLY AILING NEW VALLEY CORP IS OFFERING CONSUMERS DEBIT PHONE CARDS WITH VARIOUS AMOUNTS OF PREPAID CALLING CREDIT BUT THE CHARGES FOR THE CALLS WHICH ARE CARRIED BY MCI COMMUNICATIONS CORP ARE STEEP WHILE CALLS TO PLACES WITHIN THE US PUERTO RICO AND VIRGIN ISLANDS ARE 60 CENTS A MINUTE A CALL TO LATIN AMERICA AFRICA MEXICO AND EASTERN EUROPE CAN RANGE BETWEEN 240 AND 3 A MINUTE THIS MEANS A 20 WESTERN UNION DEBIT CARD WON'T EVEN BUY A 10MINUTE CALL TO MEXICO CITY FROM NEW YORK HOWARD GEFEN A PRODUCT MANAGER FOR THE NEW CARD ACKNOWLEDGES THAT A BIG CORE OF WESTERN UNION'S CUSTOMERS TEND TO BE UNBANKED THAT IS PEOPLE SUCH AS RECENT IMMIGRANTS WHO HAVE NO MONEY NO BANK ACCOUNTS AND NO CREDIT A SURPRISING NUMBER OF US HOUSEHOLDS DON'T HAVE PHONES ABOUT NINE MILLION HE ADDED THESE PEOPLE WILL ALSO BE TARGETED FOR CARDS ALL THE RATES ARE BLENDED MR GEFEN INSISTED TO CALL ACROSS THE US 60 CENTS A MINUTE MAY BE A GOOD DEAL WHILE IT MAY NOT BE IF YOU'RE CALLING FROM NEW JERSEY TO NEW YORK MCI SAID ITS REGULAR RATES FROM A PAY PHONE FOR A DAYTIME CALL TO MEXICO CITY FROM NEW YORK ARE 351 FOR THE FIRST MINUTE AND 141 FOR EACH ADDITIONAL MINUTE MEANING A 10MINUTE CALL WOULD COST 1620 VS WESTERN'S 30 CHARGE MCI'S REGULAR EVENING CHARGES ARE EVEN CHEAPER 1148 FOR THE 10MINUTE CALL TO MEXICO WESTERN UNION WHICH ALSO PROVIDES MONEYTRANSFER AND BILLPAYMENT SERVICES SAID THE WALLETSIZE CARD WOULD BE USABLE FOR A SIXMONTH PERIOD THE CARD COMES IN PRESET AMOUNTS OF 5 10 20 AND 50 THE CONSUMER ENTERS THE CARD'S NUMBER WHEN A CALL IS PLACED AFTER EACH CALL A COMPUTERIZED VOICE TELLS THE CALLER HOW MUCH CALLING TIME IS LEFT ON THE CARD AND ISSUES A WARNING ONE MINUTE BEFORE THE CARD'S TIME IS USED UP 9305110075 930511 LAW LEGAL BEAT LAWSUITS ALLEGING JAW IMPLANTS ARE FAULTY ARE INCREASING SHARPLY BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL LAWSUITS OVER ALLEGEDLY FAULTY JAW IMPLANTS ARE PROLIFERATING THE SUITS ALLEGE THAT THE JAW IMPLANTS DISINTEGRATE IN USE AND THAT THEIR MANUFACTURERS CONCEALED INFORMATION ABOUT THE DEVICES ONE OF THE LATEST SUITS FILED LAST MONTH IN FEDERAL COURT IN NEW JERSEY AGAINST DUPONT CO AND DOW CORNING CORP SEEKS TO BE MADE A CLASS ACTION ON BEHALF OF THOUSANDS OF PEOPLE WHO RECEIVED THE IMPLANTS THE PLAINTIFFS IN THE NEW JERSEY SUIT ALLEGE THAT THE IMPLANTS CAUSED SEVERE BONE DETERIORATION FACIAL SWELLING HEADACHES AND OTHER AILMENTS THE IMPLANTS WERE USED TO TREAT TMJ OR TEMPOROMANDIBULAR JOINT DYSFUNCTION WHICH IS AN IRRITATION OF THE DISK THAT CONNECTS THE LOWER JAW TO THE REST OF THE SKULL THE DISEASE BEGAN TO BE WIDELY DIAGNOSED IN THE 1970S AND SUFFERERS INCLUDE COMEDIAN DANA CARVEY MORE SUCH SUITS MAY BE SPURRED BY AN OREGON JURY'S DECISION TWO MONTHS AGO AGAINST DUPONT IN THAT CASE THE JURY FOUND DUPONT LIABLE FOR 460000 IN DAMAGES FOR AN IMPLANT MADE PARTLY FROM TEFLON MANUFACTURED BY THE COMPANY THE PLAINTIFF IN THAT CASE ALLEGED THAT TINY PARTICLES OF TEFLON SEPARATED FROM THE IMPLANT WHEN THE USER'S IMMUNE SYSTEM REACTED TO THE TEFLON PARTICLES IT DISSOLVED A SMALL PORTION OF HER JAW BONE THE SUIT ALLEGED A SPOKESMAN AT DUPONT'S WILMINGTON DEL HEADQUARTERS SAID IN MARCH THAT THE COMPANY PLANS TO APPEAL THE VERDICT HE SAID AT THE TIME THAT 71 SIMILAR CASES HAD BEEN DISMISSED IN THE COMPANY'S FAVOR AT LEAST 60000 PEOPLE HAVE RECEIVED ARTIFICIAL JAWIMPLANT DEVICES TO RELIEVE TMJ A VAGUELY DEFINED MALADY ABOUT 500000 PEOPLE SEEK TREATMENT EACH YEAR FOR TMJ PAIN DIZZINESS OR OTHER SYMPTOMS SINCE THE LATE 1980S HUNDREDS OF SUITS HAVE BEEN FILED OVER THE IMPLANTS THE FOOD AND DRUG ADMINISTRATION BEGAN ISSUING WARNINGS IN 1991 ABOUT TMJ IMPLANTS ORIGINALLY MADE BY VITEK INC OF HOUSTON AND THE AGENCY RECALLED THEM LAST JUNE THE OREGON CASE AGAINST DUPONT INVOLVED A VITEK IMPLANT MADE PARTLY FROM TEFLON BECAUSE VITEK WENT OUT OF BUSINESS IN 1990 PLAINTIFFS LAWYERS TURNED TO DUPONT AND DOW CORNING AS DEFENDANTS A SPOKESMAN FOR DOW CORNING SAID THE MIDLAND MICH COMPANY STOPPED MAKING SILICONE FOR THE DEVICES AS WELL AS ITS OWN JAWBONE IMPLANTS EARLIER THIS YEAR THE SPOKESMAN HOWEVER SAID THAT HUNDREDS OF STUDIES SHOWED THE PRODUCT TO BE SAFE WHEN USED AS INSTRUCTED AND IT WASN'T DESIGNED TO BE IMPLANTED FOR MORE THAN A FEW MONTHS DUPONT ALSO HAS STOPPED ALLOWING TEFLON TO BE USED IN JAW IMPLANTS ROSS F SCHMUCKI SENIOR COUNSEL SAID A SIMILAR CLASSACTION LAWSUIT WAS ATTEMPTED THREE YEARS AGO DUPONT PREVAILED IN THAT AND WE EXPECT THE SAME THING TO HAPPEN IN THIS CASE HE SAID MR SCHMUCKI SAID 500 JAWIMPLANT LAWSUITS ARE PENDING AGAINST THE COMPANY TO BRING THESE LAWSUITS AGAINST RAWMATERIAL SUPPLIERS IS AN EXTREMELY OVERREACHING ACTION HE SAID SONY CORP OF AMERICA ILLEGALLY USED WORKERS' PHOTOS IN AN ANTIUNION CAMPAIGN A NATIONAL LABOR RELATIONS BOARD OFFICIAL RULED ELEANOR MACDONALD ADMINISTRATIVE LAW JUDGE SAID THE SONY CORP UNIT'S USE OF THE PHOTOS IN A VIDEOTAPE VIOLATED FEDERAL LABOR LAW BECAUSE THE COMPANY HADN'T TOLD THE WORKERS HOW THEIR PICTURES WOULD BE USED THE TAPE WHICH WAS PART OF SONY'S CAMPAIGN TO CONVINCE CLERICAL WORKERS TO DECERTIFY THEIR UNION WAS SHOWN SHORTLY BEFORE THEY VOTED ON THE ISSUE IN MARCH 1990 THE AFLCIO LOCAL REPRESENTED WORKERS AT SEVERAL SITES IN NEW JERSEY AND NEW YORK MS MACDONALD ORDERED THAT THE ELECTION IN WHICH A MAJORITY VOTED AGAINST THE UNION BE SET ASIDE AND A NEW VOTE HELD THE VIDEOTAPE INCLUDED PHOTOS OF ALMOST ALL 140 WORKERS COVERED BY THE UNION INCLUDING SEVERAL UNION REPRESENTATIVES EMPLOYEES HAD THEIR PICTURES USED TO GIVE SEEMING APPROVAL TO THE COMPANY'S ANTIUNION MESSAGE THE TAPE WAS THE VISUAL EQUIVALENT OF PLACING THE EMPLOYEES' NAMES ON A WRITTEN ANTIUNION DOCUMENT AND CIRCULATING IT TO ALL OTHER UNIT MEMBERS MS MACDONALD RULED MS MACDONALD ALSO RULED THAT THE COMPANY'S RAFFLE OF A 1300 TV SET AND OTHER SONY PRODUCTS IN CONNECTION WITH THE ELECTION VIOLATED LABOR LAW SHE SAID THE PRIZES WHICH SONY SAID WERE MEANT TO ENCOURAGE PARTICIPATION IN THE ELECTION WERE SO VALUABLE THAT THEY AMOUNTED TO COERCION A SPOKESMAN FOR SONY CORP OF AMERICA IN PARK RIDGE NJ SAID THE COMPANY WAS VERY SURPRISED AT THE ADVERSE DECISION AND AT THIS POINT WE ARE CONSIDERING AN APPEAL LARRY CARY AN ATTORNEY FOR THE UNION AT THE NEW YORK LAW FIRM VLADECK WALDMAN ELIAS & ENGLEHARD SAID THE UNION MAY APPEAL A PORTION OF THE RULING MR CARY SAID THE UNION MAINTAINS THAT BECAUSE A FAIR ELECTION CAN NO LONGER BE HELD THE COMPANY SHOULD BE ORDERED TO BARGAIN WITH THE UNION RATHER THAN HOLD A SECOND VOTE WHO'S NEWS THOMAS L SANSONETTI FORMER INTERIOR DEPARTMENT SOLICITOR JOINED HOLLAND & HART AS OF COUNSEL MR SANSONETTI WILL PRACTICE OUT OF THE DENVERBASED LAW FIRM'S CHEYENNE WYO OFFICE AND WILL CONCENTRATE ON ENVIRONMENTAL AND NATURALRESOURCES LAW WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9305110074 930511 TECHNOLOGY IN THE LAB FUTURISTIC 411 DISCONNECTS THE OPERATOR BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL MORRISTOWN NJ SOMETIME AROUND THE YEAR 2001 THE VOICE THAT ANSWERS DIRECTORY ASSISTANCE CALLS MIGHT SOUND A LOT LIKE HAL IN A CHILLY WHITE ROOM LINED WITH PERSONAL COMPUTERS ON METAL DESKS CATHLEEN SHAMIEH PICKS UP HER PHONE DIALS AN EXTENSION AT BELL COMMUNICATIONS RESEARCH CORP AND SPEAKS THE NAME OF AN ASSOCIATE MARION ROZGER AT THE OTHER END A COMPUTER LINKED TO THE LATEST OFFTHESHELF VOICERECOGNITION EQUIPMENT TRIES TO ANSWER HER INQUIRY IN AN INSTANT A DEVICE WITHIN THE SYSTEM CONVERTS MS SHAMIEH'S SPEECH FROM AN ANALOG TO A DIGITAL SIGNAL THE SYSTEM MATCHES THE 1S AND 0S OF COMPUTER CODE AGAINST CODES FOR PHONEMES OR SOUNDS MADE BY EACH LETTER IN A WORD AND SPINS A STRING OF DATA USED TO COMB THE DATABASE OF BELLCORE'S 10000 WORKERS MS SHAMIEH'S COMPUTER SCREEN TELLS HOW THE VOICERECOGNITION EQUIPMENT INTERPRETED AND SPELLED THE NAME SHE REQUESTED IT DISPLAYS THE MOST LIKELY CHOICES ALONG WITH ADDRESSES AND PHONE NUMBERS THE EXCHANGE ISN'T EFFORTLESS WHILE THREE CHOICES APPEAR ON MS SHAMIEH'S SCREEN THE ACCOMPANYING CONFIDENCE RATIOS INDICATE SUBSTANTIAL DOUBT ON THE FIRST TRY IT IS NOT UNUSUAL TO HAVE HALF OF THE LETTERS WRONG SAYS MS SHAMIEH OVER THE PHONE A DEEP MALE VOICE MUCH LIKE THE COMPUTER HAL'S IN THE HOLLYWOOD CLASSIC 2001 ASKS MS SHAMIEH TO SPELL THE LAST NAME ALOUD SHE DOES LINES OF TYPE ON HER MONITOR SHOW THE SYSTEM HAS HEARD ROVKER AND HAS FOUND THREE POSSIBILITIES TONYA ROZIER MARION ROZGER AND FRED RICKER THE SYSTEM IS CONFIDENT ENOUGH OF ITS NO 1 MATCH MS ROZIER TO ANNOUNCE HER NAME AND NUMBER BUT IT ALSO ASKS MS SHAMIEH IF SHE WANTS THE NEXT BEST MATCH TOO AND GIVES MS ROZGER'S NAME AND NUMBER BELLCORE'S MACHINES MAY BE SHORT A LITTLE ACCURACY RIGHT NOW BUT WITHIN A FEW YEARS SAYS PROJECT DIRECTOR SHARAD SINGHAL BELLCORE WILL BE READY TO TEST THE SYSTEM'S ABILITY TO ANSWER LIVE DIRECTORY ASSISTANCE CALLS FOR A PHONE COMPANY WORKERS AT BELLCORE THE RESEARCH ARM OF THE SEVEN REGIONAL BELL PHONE COMPANIES ARE NOW GIVING THE SYSTEM A YEARLONG WORKOUT THE GOAL IS TO TRAIN THE SYSTEM TO RESPOND TO A WIDE VARIETY OF VOICES ACCENTS AND PRONUNCIATIONS MR SINGHAL SAYS THE SYSTEM MUST BE SOCIALIZED GETTING THE SYSTEM TO WORK TAKES PATIENCE MS SHAMIEH AN ELECTRICAL ENGINEER LOOKS WITH OTHER RESEARCHERS FOR GLITCHES AND WRITES SOFTWARE TO IMPROVE THE VOICE SYSTEM'S ACCURACY AND MANNERS FOR INSTANCE MS SHAMIEH WROTE THE CODE THAT MANAGES THE DIALOGUE BETWEEN A CALLER AND ERSATZ OPERATOR AND SETS UP THE DATABASE SEARCH EVERY SO OFTEN A BREAKTHROUGH ENERGIZES THE TEAM SEVERAL MONTHS AGO MS SHAMIEH RECALLS THE SYSTEM KEPT HANGING UP ON RESEARCHER JUDY LIST WHEN ASKED TO SPELL A NAME THE SYSTEM EXPECTED HER TO SPEAK THE LETTERS BUT MS LIST AUTOMATICALLY USED HER TELEPHONE KEYPAD AS SHE WAS USED TO DOING TO GET OTHER ADVANCED PHONE SERVICES EACH TIME THE SYSTEM STOPPED COLD OTHER TEAM MEMBERS RECOGNIZED THE PROBLEM IMMEDIATELY NO ONE HAD THOUGHT OF TRAINING THE SYSTEM TO INTERPRET TOUCH TONES ONCE THE CALLER'S MESSAGE IS UNDERSTOOD THE VOICE SYSTEM MUST BE ABLE TO PLAY THE ANSWER BACK THAT'S WHERE ORATOR BELLCORE'S TEXTTOVOICE SYNTHESIS SYSTEM COMES IN UNLIKE CURRENT DIRECTORY ASSISTANCE VOICES WHICH DEPEND ON RECORDINGS OF FULL WORDS OR NUMBERS ORATOR USES COMPUTERGENERATED SPEECH PIECED TOGETHER FROM RECORDED SNIPPETS CALLED DEMISYLLABLES PRODUCED BY SPLITTING SYLLABLES IN THE MIDDLE OF THE VOWEL COMBINING A VOICERECOGNITION SYSTEM WITH ORATOR COULD LET PHONE COMPANIES OFFER THEIR CUSTOMERS SERVICES THAT READ ELECTRONIC MAIL MESSAGES MATCH NAMES AND ADDRESSES TO PHONE NUMBERS OR ANNOUNCE WHO IS CALLING BEFORE A SUBSCRIBER ANSWERS THE PHONE JOHN OBERTEUFFER PRESIDENT OF VOICE INFORMATION ASSOCIATES INC A MARKET RESEARCH FIRM IN LEXINGTON MASS SAYS THE PHONE COMPANIES' INTEREST IN VOICE RECOGNITION IS INTENSE BECAUSE IT COULD CUT COSTS BY MILLIONS OF DOLLARS BUT THE BELLCORE SYSTEM MAY HAVE A FATAL FLAW IF YOU CALL DIRECTORY ASSISTANCE AND HAVE TO USE THE TELEPHONE PAD THAT WOULD BE A PROBLEM MR OBERTEUFFER SAYS CUSTOMERS WON'T USE IT IF IT IS TOO COMPLEX ORATOR WORKS BY BREAKING DOWN WORDS INTO PHONEMES ENGLISH CONTAINS ABOUT 40 PHONEMES ORACLE CAN TAP ABOUT 1000 IT THEN APPLIES MORE THAN 2000 RULES GOVERNING HOW EACH LETTER SOUNDS SEPARATES SYLLABLES AND ADDS EMPHASIS AND TONE RESEARCHER MARIAN MACCHI OFFERS THE EXAMPLE OF MR FRED FLINTSTONE ORACLE IMMEDIATELY RECOGNIZES THE ABBREVIATION AS MISTER AND COUNTS OUT FIVE SYLLABLES IT THEN FIGURES OUT HOW TO PRONOUNCE EACH ONE APPLYING PRECISE GUIDELINES SUCH AS LETTERTOPHONEME RULE NO 869 WHICH STATES THAT O IS LONG WHEN IT IS NEAR THE END OF THE WORD AND IS FOLLOWED BY A CONSONANT AND AN E AND RULE NO 389 ONE OF ABOUT 20 SILENT E RULES MS MACCHI HAS COME UP WITH A FORMULA 1MI2OSTR/31FRED/11FLINTO2STON THE LETTERS REPRESENT PHONEMES WHICH ARE GROUPED INTO SYLLABLES THE NUMBERS REPRESENT PITCH AND STRESS FOR THE SYLLABLE THAT FOLLOWS THE POUND SIGN APPEARS AT THE END OF A WORD THE SYSTEM PULLS UP THE CORRESPONDING RECORDED DEMISYLLABLES AND STRINGS THEM TOGETHER AS VISITORS GATHER THEIR COATS TO LEAVE THE LAB ORATOR SINGS OUT THANKS FOR THE OPPORTUNITY TO TALK TO YOU YOU'LL BE HEARING MORE FROM ME BUT THE VISITORS MAY ALSO BE RELIEVED TO KNOW THAT WHEN ALL ELSE FAILS THE NEW VOICERECOGNITION SYSTEM SWITCHES TO A LIVE OPERATOR 9305110073 930511 LETTERS TO THE EDITOR RUFFLED GROUSER AN APRIL 16 LETTER WRITER PROCLAIMS HIS MEMBERSHIP IN THE ROUGH GROUSE SOCIETY WHICH PRESERVES AND PROPAGATES THAT GRANDEST OF ALL GAME BIRDS PRAY TELL WHAT IS A ROUGH GROUSE I SPENT A GOOD PORTION OF MY LUNCH HOUR SEARCHING FOR THIS RARA AVIS AND IT SEEMS TO BE RARA INDEED THERE IS THE PINNATED GROUSE SHARPTAILED GROUSE SAGE GROUSE AND DUSKY GROUSE JUST FOR OPENERS COULD HE POSSIBLY MEAN THE RUFFED GROUSE AND WAS HE JUST SEEING IF WE WERE PAYING ATTENTION I HATE TO GROUSE ABOUT THIS BECAUSE I'M ON HIS SIDE IN THE DEBATE BETWEEN ANIMAL RIGHTS ACTIVISTS AND HUNTERS BUT RIDING ROUGHSHOD OVER THE ENGLISH LANGUAGE IS A PET PEEVE OF MINE 9305110072 930511 INTERNATIONAL BRIEF HOECHST AG DISCUSSIONS WITH SCHERING FOCUS ON HERBICIDE GROUPS HOECHST AG SAID IT IS TALKING WITH SCHERING AG ABOUT COMBINING THE TWO GERMAN COMPANIES' SPECIALTIES IN AGRICULTURAL CHEMICALS DISCUSSIONS ARE STILL UNDER WAY AND NO TIME HAS BEEN SET FOR SUCH A MERGER ACCORDING TO A HOECHST SPOKESMAN IN 1992 SCHERING'S AGRICULTURALCHEMICAL SALES AMOUNTED TO 128 BILLION MARKS 809 MILLION DOWN 16 FROM THE PREVIOUS YEAR HOECHST'S SALES IN THE AREA WERE 269 BILLION MARKS IN 1992 DOWN 8 FROM 1991 AGRICULTURAL CHEMICALS MADE UP 20 OF SCHERING'S TOTAL 1992 SALES AND WERE 6 OF HOECHST'S TOTAL SALES SCHERING HAS A LEADING POSITION IN WEEDCONTROL CHEMICALS FOR SUGAR BEET CROPS MAINLY WITH THE HERBICIDE BETANAL HOECHST'S STRENGTH IS IN HERBICIDES FOR GRAIN CROPS 9305110071 930511 INTERNATIONAL PAKISTAN FACING CONSTITUTIONAL CRISIS WITH DRUG LORDS WAITING IN THE WINGS BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL ISLAMABAD PAKISTAN DEMOCRACY HASN'T COME EASILY TO PAKISTAN CONFRONTATIONS BETWEEN POWERFUL PRESIDENTS AND INDEPENDENTMINDED PRIME MINISTERS HAVE UNDONE THREE ELECTED PARLIAMENTS IN FIVE YEARS A FORCEFUL MILITARY AND A LOOSELY CONTROLLED INTELLIGENCE SERVICE HAVE BRED TENSE RELATIONS WITH NEIGHBORING COUNTRIES AND THE WEST AND NOW ISLAMIC MILITANTS AND CASHRICH DRUG LORDS ARE MEDDLING IN POLITICS SUCH AN EXPLOSIVE COMBINATION IN A COUNTRY THOUGHT TO POSSESS NUCLEAR WEAPONS MAKES PAKISTAN ONCE THE CORNERSTONE OF US POLICY IN SOUTHWEST ASIA A FOCUS OF INTERNATIONAL CONCERN THE DISSOLUTION OF ITS NATIONAL ASSEMBLY LAST MONTH AND THE CONSTITUTIONAL CRISIS THAT RESULTED ONLY UNDERSCORE PAKISTAN'S PROBLEMS DEMOCRACY HERE ISN'T VIBRANT TO SAY THE LEAST SAYS A WESTERN DIPLOMAT BUT THE BRIGHT SPOT IS WE'VE MADE IT THROUGH THE LATEST POLITICAL CRISIS AND NO ONE MENTIONED MARTIAL LAW THAT MAY SOUND LIKE A MEAGER ACHIEVEMENT BUT IT'S A MEASURE OF SUCCESS IN A NATION THAT HAS BEEN UNDER STRONGARM RULE FOR MOST OF THE TIME SINCE IT ACHIEVED INDEPENDENCE IN 1947 WHEN BRITISH INDIA WAS DIVIDED INTO INDEPENDENT PAKISTAN AND INDIA SINCE THEN NONE OF PAKISTAN'S 13 PREMIERS HAS COMPLETED A FULL TERM RATHER PAKISTAN'S PRESIDENT HAS ALWAYS EXERCISED THE MOST POWER ON APRIL 18 PRESIDENT GHULAM ISHAQ KHAN ONCE AGAIN DISPLAYED THAT AUTHORITY ABRUPTLY DISSOLVING THE COUNTRY'S ELECTED NATIONAL ASSEMBLY AND DISMISSING THE GOVERNMENT OF PRIME MINISTER NAWAZ SHARIF ON JULY 14 PAKISTANIS WILL VOTE FOR A NEW ASSEMBLY THE WINNING PARTY PICKS A NEW PRIME MINISTER MEANWHILE THE COUNTRY'S SUPREME COURT IS CONSIDERING A PETITION FROM MR SHARIF OPPOSING THE DISMISSAL A DECISION TO REVERSE THE PRESIDENT'S ORDER WOULD REINSTATE THE PARLIAMENT THOUGH NOT NECESSARILY MR SHARIF'S GOVERNMENT AND OBVIATE NEW ELECTIONS THE PROBLEM HAS ALWAYS BEEN HOW TO MAKE DEMOCRACY WORK HERE SAYS HUSSEIN HAQQANI AN ADVISER TO PAKISTAN'S INTERIM PRIME MINISTER BALAKH SHER MAZARI AND A FORMER ADVISER TO MR SHARIF FEW IN PAKISTAN WOULD DISPUTE THAT MR SHARIF SAYS THE SOLUTION TO THE PROBLEM IS SIMPLE UNDO THE CONSTITUTIONAL RULE THAT LETS A PRESIDENT DISSOLVE PARLIAMENT OTHERWISE GIVEN THE CHANCE HE WILL DO IT AGAIN MR SHARIF SAYS BUT TRYING TO CURB THE PRESIDENT'S POWER IS WHAT GOT MR SHARIF FIRED IN THE FIRST PLACE THE PUNJABI INDUSTRIALIST ENJOYED A LONG HONEYMOON WITH THE TOUGH PRIVATE PRESIDENT BECOMING THE FIRST PRIME MINISTER TO ACHIEVE REAL ECONOMIC REFORM IN THIS BUREAUCRATIC STATE HE SOLD OFF DOZENS OF STATE COMPANIES LIBERALIZED FOREIGNEXCHANGE CONTROLS AND DOUBLED THE NUMBER OF PHONES TO TWO MILLION ONE FOR EVERY 60 PAKISTANIS THE CONSTITUTIONAL PROVISION THAT ALLOWS THE PRESIDENT TO DISSOLVE PARLIAMENT WAS CREATED IN 1985 BY THE LATE DICTATOR GEN ZIA ULHAQ A MENTOR OF MR SHARIF GEN ZIA WANTED A CHECK ON POLITICIANS ELECTED THAT YEAR IN THE FIRST VOTE SINCE HE SEIZED POWER IN 1977 FROM A POPULARLY ELECTED AUTOCRAT ZULFIKAR ALI BHUTTO MR BHUTTO WAS HANGED IN 1979 AFTER BEING CONVICTED OF ORDERING A POLITICAL MURDER MR ZIA USED THE PROVISION TO DISSOLVE PARLIAMENT IN 1988 SHORTLY BEFORE HE WAS KILLED IN AN AIRPLANE CRASH THAT YEAR PAKISTAN HELD FULLFLEDGED PARTYBASED ELECTIONS THE NEW GOVERNMENT HEADED BY MR BHUTTO'S DAUGHTER BENAZIR WAS DISMISSED BY MR ISHAQ KHAN IN 1990 BY TRYING TO CHANGE THE PROVISION MR SHARIF WAS ERODING THE PRESIDENT'S ABILITY TO ACT AS A CHECK ON THE PRIME MINISTER A CONSTITUTIONAL POWER THE PRESIDENT'S ALLIES SAY EXISTS IN 14 OTHER COUNTRIES EVEN SEASONED POLITICIANS SAY MR SHARIF MISCALCULATED HIS OUSTER MEANS PAKISTAN'S TWO MOST POPULAR POLITICIANS MR SHARIF AND BENAZIR BHUTTO ARE IN THE STREETS DRUMMING UP SUPPORT THAT MAY HAVE BEEN A MISCALCULATION ON MR ISHAQ KHAN'S PART ALTHOUGH MR ISHAQ KHAN BROUGHT MS BHUTTO'S ALLIES INTO THE CARETAKER GOVERNMENT MS BHUTTO HAS ALSO MADE IT CLEAR SHE WILL SEEK TO LIMIT THE PRESIDENT'S AUTHORITY IF HER PAKISTAN PEOPLE'S PARTY WINS A MANDATE WITH MR SHARIF AND MS BHUTTO CAMPAIGNING SOME FEAR THAT POLITICAL UNREST COULD PROMPT MILITARY INTERVENTION THE MILITARY'S INDEPENDENCE IS RENOWNED IT WAS THE MILITARY FOR INSTANCE THAT BUILT PAKISTAN'S ATOMIC BOMB DIPLOMATS SAY KEEPING IT SUCH A SECRET THAT MS BHUTTO DIDN'T KNOW OF ITS EXISTENCE EARLY IN HER TERM AS PRIME MINISTER ULTIMATELY WASHINGTON CUT OFF AID TO PAKISTAN OVER THE NUCLEAR PROGRAM THAT HAS FUELED WORRIES THAT SOME IN THE MILITARY AND ITS SISTER ORGANIZATION THE INTER SERVICES INTELLIGENCE AGENCY ACT BEYOND POLITICAL CONTROL INDIA CLAIMS ROGUE ISI ELEMENTS SPONSORED TERRORIST ATTACKS IN BOMBAY AND THE DISPUTED TERRITORY OF KASHMIR THOSE CLAIMS BROUGHT THE US CLOSE TO DECLARING PAKISTAN A TERRORISTSPONSORING STATE SOME PEOPLE DID GET INVOLVED IN KASHMIR PROBABLY I DON'T KNOW BUT EVEN IF THEY DID IT WAS UNAUTHORIZED SAYS AKRAM ZAKI SECRETARYGENERAL OF FOREIGN AFFAIRS ANY ELECTED GOVERNMENT WILL CONTINUE TO FACE PROBLEMS FROM ISLAMICMINDED GROUPS INCLUDING SMALL PARTIES INCLUDED IN ANY COALITION GOVERNMENT THAT WANT A JIHAD OR HOLY WAR WAGED IN KASHMIR LIKE THE ONE THAT DEFEATED THE SOVIET UNION IN NEIGHBORING AFGHANISTAN KASHMIR HAS A LOT OF BEARING ON CHANGES IN PAKISTAN SAYS SARDAR MOHAMMAD ABDUL QAYYUM KHAN PRIME MINISTER OF PAKISTANIHELD KASHMIR IF IT WERE SOLVED THERE WOULD BE NO NUCLEAR PROBLEM AND IF THERE WERE NO NUCLEAR PROBLEM THE US MIGHT TAKE A DIFFERENT VIEW BESIDES OTHER OBSERVERS NOTE ISLAMIC MILITANTS HAVE LESS AND LESS TROUBLE RAISING FUNDS THANKS TO THE EMERGENCE OF A NEW CLASS OF DRUG LORDS ALONG THE COUNTRY'S WILD FRONTIER WITH AFGHANISTAN THE REGION NOW IS THE WORLD'S SECONDLARGEST PRODUCER OF HEROIN AFTER THE GOLDEN TRIANGLE IN SOUTHEAST ASIA AND ONE OF THE LARGEST MARIJUANAGROWING AREAS DRUGENFORCEMENT OFFICIALS IN ISLAMABAD BELIEVE THAT SEVERAL MEMBERS OF PAKISTAN'S DISMISSED NATIONAL ASSEMBLY BOUGHT THEIR WAY INTO POWER WITH DRUG MONEY AND THEY SAY SOME OF THAT SAME MONEY IS AVAILABLE FOR ARMED MUJAHEDEEN OR HOLY WARRIORS WHO FOUGHT FIRST IN AFGHANISTAN AND NOW WANT TO FIGHT IN KASHMIR FOR ANY PAKISTANI GOVERNMENT THAT BODES ILL DRUG MONEY IS ENTERING INTO POLITICS SAYS CHAUDHURY SHAJAT HUSSAIN INTERIOR MINISTER IN MR SHARIF'S GOVERNMENT IT IS HARD TO FIGHT 9305110070 930511 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN IN JAPAN NOT EVEN COUNTING PROHIBITIVELY HIGH LAND PRICES THE COST TO BUILD A HOME IS TRIPLE THAT IN THE US JAPAN RESEARCH INSTITUTE LTD SAID CONSTRUCTION OUTLAYS AVERAGE 600000 YEN 5437 FOR EVERY 33 SQUARE METERS OR 367 SQUARE FEET COMPARED WITH 200000 YEN IN THE US THE INSTITUTE SAID THUS BUILDING A HOUSE OF 100 SQUARE METERS IN JAPAN COSTS ABOUT 18 MILLION YEN 163116 COMPARED WITH 6 MILLION YEN IN THE US THE INSTITUTE'S REPORT URGED SIMPLIFICATION OF JAPAN'S CONSTRUCTIONMATERIALS DISTRIBUTION SYSTEM AND COMPLICATED CONTRACTUAL SYSTEM FOR HOME BUILDING THE US HAS SAID THE REGULATIONS CREATE A BARRIER FOR FOREIGN CONSTRUCTION COMPANIES BUT THE REPORT ALSO SAID JAPAN SHOULDN'T EASE EARTHQUAKE AND FIRE SAFETY REGULATIONS TO WIDEN THE MARKET TO FOREIGN BUILDERS IT SAID THESE RULES ARE WARRANTED BECAUSE OF JAPAN'S CROWDING SOFT FOUNDATION SOIL AND FREQUENT EARTHQUAKES HUNGARY AGREED WITH THE INTERNATIONAL MONETARY FUND ON A STANDBY CREDIT THAT WOULD RELEASE 600 MILLION IN LOANS THE IMF FROZE LAST JULY AFTER THE COUNTRY'S BUDGET DEFICIT SOARED THE DEAL IF APPROVED BY PARLIAMENT ALSO WOULD ALLOW A 400 MILLION WORLD BANK LOAN TO HELP HUNGARY'S ECONOMIC RESTRUCTURING THE IMF ACCORD REPLACES A THREEYEAR 15 BILLION AGREEMENT SIGNED IN 1991 AND SUSPENDED AFTER 720 MILLION WAS PAID OUT WHEN THE BUDGET DEFICIT MORE THAN DOUBLED TO 185 BILLION FORINTS 217 BILLION FROM PLANNED ESTIMATES IN RETURN FOR THE CREDITS HUNGARY WILL ENACT MEASURES POSSIBLY INCLUDING TAX INCREASES TO CUT THE DEFICIT AMSTERDAM'S SCHIPHOL AIRPORT OPENED A NEW TERMINAL THAT INCREASES PASSENGER CAPACITY 50 HAS SEVEN PASSENGER LOUNGES A HOTEL AND 14 SHOPS AND MAY FEATURE EUROPE'S FIRST AIRPORT CASINO GAMBLING IS INTENDED TO OFFSET REVENUE LOSSES WHEN THE EUROPEAN COMMUNITY ABOLISHES DUTYFREE SHOPPING IN 1999 THE CASINO COULD BE OPEN BY EARLY AUTUMN FOLLOWING APPROVAL BY NETHERLANDS GOVERNMENT AGENCIES STATEOWNED HOLLAND CASINOS NV WILL OPERATE THE GAMBLING HALL WITH 60 SLOT MACHINES THREE BLACKJACK TABLES A ROULETTE WHEEL AND AN ASIAN DICE GAME A SOUTH KOREAN GOVERNMENTCOMMISSIONED RESEARCH PANEL UNVEILED SWEEPING GUIDELINES TO RESTRUCTURE THE COUNTRY'S ANTIQUATED FINANCIAL SYSTEM THROUGH THE YEAR 2005 THE PROPOSALS SUBJECT TO FINANCE MINISTRY APPROVAL WOULD GRADUALLY EASE BUSINESS BOUNDARIES FOR BANKS INSURERS AND SECURITIES FIRMS AND ALLOW THEM BROAD OPERATING LATITUDE FROM PERSONNEL TO OVERSEAS LOANS THEY WOULD ENCOURAGE MERGERS AND ACQUISITIONS NOW RARE IN THE SECTOR WHICH WOULD BE OPENED TO WIDER ENTRY CONTROLS ON MARKETS AND INVESTMENTS FROM ABROAD WOULD BE RELAXED SUMMER BONUSES IN JAPAN WHICH USUALLY ACCOUNT FOR 7 OF ANNUAL HOUSEHOLD INCOME WILL FALL FOR PRIVATESECTOR WORKERS FOR THE FIRST TIME SINCE DATA ON THE PAYMENTS WERE CREATED IN 1970 ASAHI BANK RESEARCHERS PREDICTED BONUSES WILL AVERAGE 475920 YEN 4313 DOWN 15 OR AN INFLATIONADJUSTED 25 THE REPORT BLAMED CORPORATE EARNINGS IN THE FIRST HALF INCLUDING 31 HIGHER BONUSES FOR PUBLICSECTOR WORKERS OVERALL PAYMENTS WILL FALL 09 TO 502305 YEN THIS COULD PROLONG WEAK CONSUMER DEMAND WHICH ACCOUNTS FOR ABOUT 60 OF GROSS NATIONAL PRODUCT CHINA IS DRAFTING LEGISLATION TO SET A NATIONWIDE MINIMUM WAGE THE MEASURE IS AMONG EFFORTS TO PROTECT WORKERS AS STATE ENTERPRISES GET MANAGERIAL AUTONOMY LAST JULY THESE FIRMS BEGAN SETTING THEIR OWN PAY SCALES AND 52 MILLION EMPLOYEES OR ABOUT HALF THEIR WORK FORCE HAD THEIR WAGES TIED TO PERFORMANCE SKILLS OR POSITION A CHANGE FROM GOVERNMENTSET COMPENSATION REGARDLESS OF PRODUCTIVITY POLAND PLANS TO PLUNK DOWN MORE THAN 43 MILLION FOR A WORLDWIDE MARKETING CAMPAIGN FOR ITS PRIVATIZATION PROGRAM THE CAMPAIGN INVOLVES MARKET RESEARCH ADVERTISING AND PUBLIC RELATIONS TO SELL THE IDEA OF SELLING OFF 600 STATE ENTERPRISES THROUGH NATIONAL INVESTMENT FUNDS AND DISTRIBUTION OF STOCK TO POLES THE GOVERNMENT HIRED CORPORATE PROFILES A BRUSSELS CONSULTING FIRM THAT MADE POLAND'S STATE LOTTERY A SUCCESS TO CONDUCT THE CAMPAIGN THE FIRM NOTING THAT POLES ARE WARY ABOUT OWNING STOCK IN PRIVATIZED COMPANIES SAID IT MUST CONVINCE THEM THAT POLAND'S ECONOMY DESPERATELY NEEDS THE PROGRAM TO FURTHER ITS TRANSFORMATION FROM COMMUNISM THE PRIVATIZATION MINISTRY TOO MAINTAINS THAT THE CAMPAIGN CAN'T BE AN AGGRESSIVE SALES EFFORT BUT MUST ADDRESS FAIRNESS AND WORKABILITY OF THE SELLOFFS WITH SENSITIVITY TO PEOPLE'S FEARS ABOUT FREE MARKETS RANGING FROM JOB LOSSES AND TOUGHER WORK DEMANDS TO CORRUPTION BY FORMER COMMUNISTS WITH CONNECTIONS CHINA'S 80000 RURAL ENTERPRISES EXPORTED 20 BILLION OF GOODS LAST YEAR UP 79 FROM 1991 THE FASTGROWING ENTERPRISES ACCOUNTED FOR 28 OF THE VALUE OF CHINA'S INDUSTRIAL OUTPUT AND 25 OF FOREIGNEXCHANGE EARNINGS NEPAL SAID A ONEDAY RECORD OF 37 PEOPLE SCALED MOUNT EVEREST SEVEN TEAMS ARRIVED WITHIN A HALFHOUR PERIOD ATOP THE WORLD'S TALLEST PEAK CREATING A CLIMBER TRAFFIC JAM 9305110069 930511 BUSINESS BRIEF HERMAN'S WORLD OF SPORTING GOODS COMPANY WILL CUT 225 POSTS AT WAREHOUSE HEADQUARTERS HERMAN'S WORLD OF SPORTING GOODS CARTERET NJ SAID IT WILL ELIMINATE ABOUT 225 POSITIONS AT ITS CENTRAL WAREHOUSE AND CORPORATE HEADQUARTERS HERE AS PART OF ITS RESTRUCTURING THE JOB CUTS ARE TO STRENGTHEN OPERATIONS AND RESTORE THE COMPANY TO PROFITABILITY AS QUICKLY AS POSSIBLE THE COMPANY SAID IN A STATEMENT ALFRED FASOLA CHIEF EXECUTIVE REITERATED THE COMPANY'S PREVIOUS STATEMENT ON ITS RESTRUCTURING THAT WE HAVE CONCLUDED THAT HERMAN'S FUTURE LIES IN THE NORTHEAST CORRIDOR ACCORDINGLY WE ARE NOW IN THE PROCESS OF CLOSING ALL 132 OF OUR STORES OUTSIDE OF THIS CORE MARKET MR FASOLA SAID HERMAN'S WILL HAVE 121 STORES ALONG THE BOSTON TO NEW YORK TO WASHINGTON CORRIDOR AFTER THE PROCESS IS COMPLETED HE SAID THE COMPANY WILL CONTINUE TO CONCENTRATE ON REDUCING EXPENSES WHICH INCLUDES ELIMINATING REGIONAL OFFICES ENHANCING PRODUCTIVITY LOWERING HANDLING COSTS AND IMPLEMENTING EFFECTIVE MARKETING AND ADVERTISING PROGRAMS 9305110068 930511 BUSINESS BRIEF ACXIOM CORP NET INCOME ADVANCED 68 IN 4TH QUARTER TO 16 MILLION ACXIOM CORP CONWAY ARK SAID NET INCOME FOR THE FISCAL FOURTH QUARTER ROSE 68 THE DATA MANAGEMENT SERVICES COMPANY SAID NET FOR THE PERIOD ENDED MARCH 31 WAS 16 MILLION OR 15 CENTS A SHARE UP FROM 980000 OR 10 CENTS A SHARE A YEAR EARLIER THE COMPANY HAD A 16 INCREASE IN SHARES OUTSTANDING IN THIS YEAR'S QUARTER REVENUE INCREASED 41 TO 331 MILLION FROM 234 MILLION THE COMPANY ATTRIBUTED THE REVENUE GAINS TO IMPROVEMENT IN MOST OF ITS BUSINESS UNITS INCLUDING A 200 MILLION 10YEAR CONTRACT IT SIGNED IN THE SECOND QUARTER TO MANAGE TRANS UNION CORP'S DATA PROCESSING CENTER ROBERT BOLEN AN ANALYST WITH JC BRADFORD IN NASHVILLE TENN SAID ACXIOM'S RESULTS WERE CONSISTENT WITH HIS ESTIMATES HE SAID THE COMPANY BENEFITTED FROM THE ADDED REVENUE BECAUSE IT HAS SEMIFIXED COSTS AND DIDN'T HAVE SUBSTANTIAL ADDITIONAL COSTS WHEN IT WON THE NEW BUSINESS 9305110067 930511 BUSINESS BRIEF NATIONAL MEDICAL ENTERPRISES INC FIVE CLOSED HOSPITALS SOLD ACCORD ON OPEN SITE IS SET NATIONAL MEDICAL ENTERPRISES INC SAID IT SOLD FIVE OF ITS SHUTTERED PSYCHIATRIC HOSPITALS AND SIGNED AN AGREEMENT TO SELL A SIXTH HOSPITAL THAT IS STILL OPEN TERMS OF THE TRANSACTIONS WEREN'T DISCLOSED PRICES FOR PSYCHIATRIC HOSPITALS ARE DEPRESSED BECAUSE SO MANY ARE FOR SALE SHUTTERED HOSPITALS FETCH EVEN LESS PARTLY BECAUSE OF THE COST OF STARTING UP OPERATIONS AGAIN NATIONAL MEDICAL BASED IN SANTA MONICA CALIF SAID A YEAR AGO THAT IT PLANNED TO SELL CLOSE OR CONVERT MORE THAN 20 PSYCHIATRIC HOSPITALS IN ADDITION TO THE SEVEN FACILITIES THAT HAVE NOW BEEN SOLD THE COMPANY HAS CLOSED SEVEN OTHER HOSPITALS AND SUBSTANCE ABUSE TREATMENT CENTERS THE COMPANY HAS ALSO CONVERTED THREE HOSPITALS SINCE LAST YEAR 9305110066 930511 BUSINESS BRIEF TRINITY INDUSTRIES INC FISCAL FOURTHQUARTER NET TRIPLED REVENUE ROSE 29 TRINITY INDUSTRIES INC SAID IMPROVED BUSINESS CONDITIONS FOR ITS RECESSIONHURT HEAVY METAL PRODUCTS RESULTED IN A TRIPLING OF FOURTHQUARTER NET INCOME FOR THE PERIOD ENDED MARCH 31 THE DALLASBASED MAKER OF RAIL CARS MARINE PRODUCTS SUCH AS VESSELS AND BARGES AND STEEL CONTAINERS SAID IT EARNED 147 MILLION OR 60 CENTS A SHARE UP FROM NET OF 44 MILLION OR 19 CENTS A SHARE THE YEAR EARLIER REVENUE IN THE QUARTER ROSE 29 TO 3889 MILLION FROM 3009 MILLION A YEAR EARLIER FOR ALL OF FISCAL 1993 TRINITY SAID IT EARNED 45 MILLION OR 191 A SHARE ON REVENUE OF 154 BILLION THE YEAR EARLIER TRINITY EARNED 243 MILLION OR 107 A SHARE ON REVENUE OF 127 BILLION THE FISCAL 1992 RESULTS WERE RESTATED TO INCLUDE TRINITY'S ACQUISITION OF SYRO INC A STEEL CONCERN 9305110065 930511 MONDAY'S MARKETS STOCK RALLY IS DEFLATED NEAR CLOSING DOW ADVANCES 609 AFTER BEING UP 30 BONDS DOLLAR GAIN BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFFS STAFF REPORTERS OF THE WALL STREET JOURNAL A ROBUST STOCK MARKET RALLY DEFLATED LATE IN THE AFTERNOON ON COMPUTERGUIDED SELLING BOND PRICES ROSE AND THE DOLLAR SOARED THE DOW JONES INDUSTRIAL AVERAGE ROSE 609 POINTS TO 344328 STANDARD & POOR'S 500STOCK INDEX GAINED 049 TO 44280 AND THE NASDAQ COMPOSITE INDEX CLIMBED 138 TO 68282 STOCK TRADING BEGAN ON AN UPBEAT NOTE AS INVESTORS BREATHED A SIGH OF RELIEF THAT THE US HADN'T INTERVENED IN BOSNIA DURING THE WEEKEND THE DOW JONES INDUSTRIALS CLIMBED AS MUCH AS 30 POINTS AIDED BY STRENGTH IN THE BOND MARKET BUT PRICES BEGAN TO SINK AMID GROWING WORRIES ABOUT TODAY'S GOVERNMENT DEBT REFUNDING A BURST OF COMPUTER GUIDED SELL ORDERS SENT PRICES EVEN LOWER NEAR THE CLOSE ANALYSTS SAID INVESTORS REMAIN SKITTISH AS THEY AWAIT FURTHER SIGNS ON THE STRENGTH OF THE ECONOMIC RECOVERY AND THE COSTS OF THE CLINTON HEALTHCARE PLAN UNTIL THOSE TWO QUESTIONS ARE ANSWERED THE MARKET WILL BE LOCKED IN A NARROW TRADING RANGE SAID JOHN SHAUGHNESSY DIRECTOR OF RESEARCH AT ADVEST INC IN HARTFORD CONN BOND PRICES WHICH CONTINUE TO BENEFIT FROM THE SLUGGISH ECONOMY GOT A BOOST FROM A SOARING DOLLAR ONE OF THE BIG WORRIES OF THE BOND MARKET HAS BEEN THAT THE DECLINING DOLLAR WOULD LEAD TO IMPORTPRICE INFLATION SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP ANY STRENGTHENING OF THE DOLLAR STARTS TO PUT THAT FEAR TO REST THE DOLLAR JUMPED 24 AGAINST THE POUND 15 AGAINST THE MARK AND 13 AGAINST THE YEN THE POUND WAS UNDERMINED BY SUSPICIONS THAT BRITAIN'S CONSERVATIVE PARTY MIGHT CUT INTEREST RATES TO HELP REGAIN POPULARITY FOLLOWING SEVERE ELECTION LOSSES LAST WEEK TRADERS TIED THE RISE AGAINST THE MARK AND YEN TO SHORTCOVERING BY TRADERS WHO EARLIER BET THE DOLLAR WOULD FALL ONCE THE DOLLAR DIDN'T WEAKEN APPRECIABLY FOLLOWING THE RELEASE OF POOR US ECONOMIC DATA ON FRIDAY PEOPLE STARTED REESTABLISHING LONG POSITIONS SAID JULIAN SYMMONS HEAD TRADER AT CITIBANK IN LONDON SOME ANALYSTS PREDICTED NEW TROUBLES FOR THE CONSERVATIVES IN ENGLAND FOLLOWING DEFEATS IN LOCAL ELECTIONS AND A PARLIAMENTARY BYELECTION LAST WEEK TORY PARTY HEAVYWEIGHTS AND NEARLY EVERY NEWSPAPER IN THE COUNTRY ARE CALLING FOR A CABINET RESHUFFLE WITH THE CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT AS THE FIRST TO BE RESHUFFLED SAID MORGAN STANLEY & CO IN AN ADVISORY SENT TO CLIENTS PRIME MINISTER JOHN MAJOR IS POLITICALLY FRAGILE AND TORY PARTY DISUNITY ADDS TO THE PERCEPTION OF A GOVERNMENT THAT IS UNABLE TO COME TO GRIPS WITH THE POLITICAL OR ECONOMIC AGENDAS WHILE THE CONSERVATIVES' POLITICAL PROBLEMS WERE BAD NEWS FOR BRITAIN'S CURRENCY THEY WERE A BOON FOR THE LONDON STOCK MARKET WHICH ROSE 13 ALONG WITH EXPECTATIONS THAT MR MAJOR MIGHT QUIET HIS CRITICS BY FIRING MR LAMONT AND LOWERING INTEREST RATES BRITISH STOCKS WERE ALSO BOLSTERED BY THE START OF A NEW SETTLEMENT PERIOD AND LOWERTHANEXPECTED APRIL PRODUCER PRICE INCREASES BRITISH STOCKS WERE SET FOR A REBOUND AFTER LAST WEEK'S SELLOFF SAID PETER BAKER HEAD OF UK EQUITY TRADING AT BROKERS PANMURE GORDON & CO IN LONDON BUT HE WARNED THE MARKET'S FAR TOO HIGH WE'RE STILL AIMED FOR ANOTHER STEP DOWNWARD HE PREDICTED LONDON SHARES WOULD FALL MORE THAN 3 IN THE SHORT TERM WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX SLIPPED 044 TO 10537 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2247 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1075 ISSUES ROSE AND 835 FELL BOND PRICES CLIMBED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED ABOUT 3/8 POINT OR APPROXIMATELY 375 FOR EACH 1000 FACE AMOUNT TO YIELD 681 THE DOLLAR RALLIED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16074 MARKS AND 11175 YEN COMPARED WITH 15838 MARKS AND 11030 YEN FRIDAY 9305110064 930511 BUSINESS BRIEF HEALTH IMAGES INC FIRM SAYS PROFIT FOR QUARTER WON'T LIKELY MEET FORECASTS HEALTH IMAGES INC ISN'T LIKELY TO MEET ANALYSTS' SECONDQUARTER EARNINGS ESTIMATES OF 12 CENTS TO 13 CENTS A SHARE SAID ROBERT D CARL PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CURRENT ESTIMATE IS TOO HIGH MR CARL SAID MAYBE SIGNIFICANTLY TOO HIGH WHILE MR CARL SAID HE WAS RELUCTANT TO ESTIMATE EARNINGS FOR THE QUARTER HE SAID THE COMPANY WOULD BE DOING WELL IF EARNINGS MATCH FIRSTQUARTER RESULTS FOR THE FIRST QUARTER THE ATLANTA CONCERN EARNED NINE CENTS A SHARE HE SAID HE EXPECTS 1993 TO REMAIN PROFITABLE WITH PRESIDENT CLINTON CONCENTRATING ON HEALTHCARE REFORM AND WITH PRESSURE ON PROVIDERS TO CUT COSTS MR CARL SAID DOCTORS HAVE BEEN MORE CAUTIOUS ABOUT ORDERING MAGNETIC RESONANCE IMAGING HEALTH IMAGES' CORE BUSINESS HE SAID HE EXPECTS SUCH CAUTION MAY EVAPORATE ONCE A NATIONAL HEALTH PROGRAM IS UNVEILED 9305110063 930511 CANADIAN HOUSING STARTS RISE OTTAWA CANADIAN HOUSING STARTS ROSE 151 IN APRIL FROM MARCH TO A SEASONALLY ADJUSTED ANNUAL RATE OF 170200 UNITS THE HIGHEST LEVEL SINCE DECEMBER SAID CANADA MORTGAGE AND HOUSING CORP A GOVERNMENT AGENCY THE RECOVERY FROM SEVERE WINTER WEATHER WAS WIDESPREAD WITH ALL REGIONS EXCEPT FOR THE ALREADY STRONG BRITISH COLUMBIA MARKET REPORTING IMPROVED ACTIVITY SAID GILLES PROULX THE CORPORATION'S CHIEF ECONOMIST 9305110062 930511 HEARD ON THE STREET STEEL STOCKS ARE REDHOT AND COULD TURN WHITEHOT SOME ENTHUSIASTS CONTEND BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL FINALLY MOST BIG STEEL COMPANIES WILL BREAK INTO THE BLACK THIS YEAR AFTER SPENDING THE BETTER PART OF THE PAST FIVE YEARS IN THE RED STEEL STOCKS ARE ALREADY CELEBRATING WITH THE AVERAGE STEEL ISSUE UP ABOUT 16 SO FAR THIS YEAR AND VETERAN STEELSTOCK WATCHERS LOOK FOR THE GROUP TO GRIND OUT MORE GAINS IN THE NEXT YEAR OR TWO I THINK YOU'RE A LONG WAY FROM THE TOP IN THESE STOCKS SAYS MICHELLE GALANTER APPLEBAUM THE SALOMON BROTHERS STEEL ANALYST WHO RANKS NO 1 IN INSTITUTIONAL INVESTOR MAGAZINE'S INFLUENTIAL RATING OF ANALYSTS SKEPTICS AND THERE ARE PLENTY SAY IT'S ASKING TOO MUCH TO EXPECT FURTHER GAINS AFTER THE STEELS HAVE ALREADY BOUNCED 50 OR MORE FROM THEIR 1992 LOWS MORE ADVANCES THEY ARGUE WOULD REQUIRE A ROBUST ECONOMIC RECOVERY AND THE ONE WE'VE GOT LOOKS WOOZY BUT MS APPLEBAUM SAYS STEEL STOCKS USUALLY RUN FOR A WHILE ONCE GOOD TIMES BEGIN HERE ARE SOME REASONS SHE IS SO ADAMANT STEEL COMPANIES LATELY HAVE BEEN ABLE TO MAKE PRICE INCREASES STICK FOR THE FIRST TIME SINCE 1990 MANY SPENT A BUNDLE IN RECENT YEARS TO UPGRADE OUTMODED PRODUCTION LINES NOW THEY CAN EASE OFF ON THAT SPENDING AND REAP THE REWARDS IF PAST CYCLES ARE ANY GUIDE SHE GUESSES THE PRICE OF STEEL WILL RISE FASTER THAN STEEL COMPANIES' COSTS FOR THE NEXT TWO YEARS DURING THAT TIME SHE BELIEVES MANY OF THE STOCKS COULD DOUBLE THE IMPORT PICTURE ALSO HAS CHANGED FOR THE BETTER THIS IS THE FIRST TIME WE'VE HAD A LEVEL PLAYING FIELD IN 20 YEARS SAYS J CLARENCE MORRISON ANALYST WITH PRUDENTIAL SECURITIES THE US HAS SLAPPED TARIFFS ON STEEL COMING IN FROM BRAZIL GERMANY BRITAIN AND OTHER COUNTRIES AFTER FINDING THAT FOREIGN COMPETITORS WERE EITHER SELLING STEEL HERE BELOW THEIR COSTS OR BENEFITING FROM VARIOUS KINDS OF GOVERNMENT SUBSIDIES THE TARIFFS STILL ARE SUBJECT TO FINAL REVIEW MR MORRISON SAYS BUT ARE LIKELY TO STAND AS A RESULT HE THINKS IMPORTS WILL DECLINE TO ABOUT 125 MILLION TONS THIS YEAR FROM 171 MILLION TONS IN 1992 HE EXPECTS DOMESTIC SHIPMENTS TO RISE TO 87 MILLION TONS FROM 823 MILLION TONS STEEL STOCKS AREN'T FOR THE TIMID THE COMPANIES' BALANCE SHEETS ARE GENERALLY BAD THEIR PENSION AND HEALTHCARE LIABILITIES ARE SUBSTANTIAL AND THE WHOLE IDEA OF INVESTING IN STEEL REQUIRES A WILLINGNESS TO BELIEVE THAT THE ECONOMIC RECOVERY WON'T FIZZLE OUT BUT THAT HASN'T DISCOURAGED BUYERS LIKE MUTUALFUND GIANT FIDELITY INVESTMENTS WHICH HAS LOADED UP ON STEEL STOCKS TOM SPRAGUE WHO FOLLOWS THE INDUSTRY FOR FIDELITY THINKS THE STOCKS' MOVE IS ABOUT HALF OVER BUT HE SAYS THE SHARES ARE STILL WORTH BUYING FOR INVESTORS WITH A TIME HORIZON OF A YEAR OR MORE A SHORTTERM PULLBACK WOULD BE NO SURPRISE SINCE THE STOCKS HAVE ALREADY RISEN SO MUCH MR SPRAGUE SAYS BUT BEYOND THAT THE PROSPECTS ARE VERY GOOD MY ADVICE WOULD BE IF YOU OWN THEM HOLD THEM IF YOU DON'T BUY A LITTLE NOW AND DOUBLE UP IF YOU SEE SOME WEAKNESS IN THE COMING MONTHS WHICH STEEL STOCKS ARE THE BEST BUYS MR SPRAGUE'S FAVORITE IS USXUS STEEL GROUP THEIR MODERNIZATION PROGRAM IS DONE AND THEIR COSTS ARE LOW HE SAYS THEIR SHIPMENT CAPABILITY IS HIGH HE CALLS INLAND STEEL A SLEEPER WHILE MANY STEEL COMPANIES WILL TURN PROFITABLE IN THE SECOND QUARTER INLAND MAY NOT BREAK INTO THE BLACK UNTIL THE THIRD OR FOURTH QUARTER HE SAYS BUT BECAUSE IT HAS BECOME AGGRESSIVE ON COST REDUCTION HE THINKS EARNINGS COULD SHOOT UP FAST AT THE PIONEER FUNDS IN BOSTON THE FAVORITE STEEL STOCK IS BETHLEHEM STEEL IT COULD EARN FOUR TO FIVE BUCKS A SHARE IN A COUPLE OF YEARS SAYS ANALYST MARK H MADDEN ASSUMING A MODEST MULTIPLE OF SIX TIMES THOSE EARNINGS THE STOCK WOULD HIT 24 TO 30 BETHLEHEM CLOSED YESTERDAY AT 19 3/8 DOWN 1/4 MR MADDEN SAYS HE ADMIRES NUCOR THE HIGHLY SUCCESSFUL MINIMILL COMPANY BUT WOULDN'T BUY ITS STOCK WHICH IS SELLING AT ABOUT 30 TIMES 1993 EARNINGS ESTIMATES IT'S A GREAT COMPANY A WELLMANAGED COMPANY BUT I WOULDN'T PAY THAT MUCH HE SAYS MR MADDEN CAUTIONS INVESTORS THAT STEEL STOCKS AREN'T INVESTMENTS TO MAKE FOR YOUR KIDS' COLLEGE FUND PUT IN A SAFE DEPOSIT BOX AND FORGET ABOUT WHILE HE LIKES THE STOCKS FOR THE NEXT YEAR OR TWO ON A FIVE TO 10YEAR BASIS I WOULDN'T WANT TO OWN THEM HE SAYS IT'S A TOUGH INDUSTRY WITH LOTS OF INTERNATIONAL COMPETITION ENVIRONMENTAL LIABILITIES A VORACIOUS APPETITE FOR CAPITAL AND A DECLINING ROLE IN THE ECONOMY OVER THE LONG HAUL PETER MARCUS STEEL ANALYST AT PAINEWEBBER SAYS THE BIGGEST BESTKNOWN STEEL COMPANIES SUCH AS USX AND BETHLEHEM HAVE RISEN TOO MUCH FOR HIS TASTE HE'S RECOMMENDING MORE SPECULATIVE PICKS SUCH AS WEIRTON STEEL WHEELINGPITTSBURGH NEW JERSEY STEEL AND CARPENTER TECHNOLOGY NEW JERSEY STEEL IS ONE OF THE LAST FEW REAL BARGAINS IN THE MINIMILL SECTOR HE SAYS AND HAS A COST ADVANTAGE OVER COMPETITORS IN THE NORTHEAST AT 14 3/4 THE STOCK IS SELLING AROUND BOOK VALUE CORPORATE ASSETS MINUS LIABILITIES PER SHARE WHILE MOST MINIMILL STOCKS GO FOR ABOUT 17 TIMES BOOK THE COMPANY HAS OPERATED AROUND BREAKEVEN OVER THE PAST FOUR QUARTERS BUT MR MARCUS THINKS IT WILL EARN ABOUT 3 A SHARE IN 1995 WEIRTON TOO LOOKS CHEAP THOUGH NOT AS CHEAP AS IT WAS FRIDAY WHEN MR MARCUS RECOMMENDED IT HE EXPECTS WEIRTON TO EARN 205 A SHARE IN 1994 THE STOCK CLOSED YESTERDAY AT 8 3/4 UP 7/8 OF COURSE NOT EVERYONE IS HOPPING ON THE STEEL BANDWAGON CHARLES W HOOPER A MONEY MANAGER WITH FOUNDERS SPECIAL FUND IS JUST HOPPING OFF HE BOUGHT BETHLEHEM STEEL AT ABOUT 13 AND JUST UNLOADED THE LAST OF HIS SHARES AT ABOUT 19 WHEN THEY SLAPPED THOSE IMPORT RESTRICTIONS ON THE PRICE WENT UP AND THAT'S WHEN I GOT OUT MR HOOPER SAYS HE STILL THINKS THE SHARES COULD CLIMB SOME MORE IF THE ECONOMY IS STRONG IN 1994 BUT HE THINKS THAT'S IFFY GIVEN THE LIKELIHOOD OF HIGHER TAXES OVERALL SAYS MR HOOPER I THINK IT'S PROBABLY THE SEVENTH INNING FOR STEEL STOCKS HE DOESN'T WANT TO STICK AROUND UNTIL THE NINTH ANOTHER SKEPTIC IS ROBERT A HAGEMAN OF KIDDER PEABODY LAST WEEK HE DOWNGRADED US STEEL TO UNDERPERFORM FROM HOLD SAYING THAT FUNDAMENTALS ARE BEING OVERSHADOWED BY EUPHORIC EXPECTATIONS HE AND OTHER SKEPTICS SAY THAT STEEL BUYERS HAVE LOADED UP ON SUPPLIES IN THE FIRST HALF OF THIS YEAR ANTICIPATING THE TARIFFS AND A POSSIBLE STRIKE THEREFORE THE SKEPTICS FEAR THAT SECONDHALF SHIPMENTS MAY NOT MEASURE UP TO EXPECTATIONS MR MORRISON OF PRUDENTIAL SAYS HE'S STILL VERY POSITIVE BUT ONLY ON CERTAIN COMPANIES HIS SINGLE BEST IDEA IS LUKENS WHICH IS STRONG IN PLATE STEEL PREVIOUSLY AN AREA HARDHIT BY IMPORTS AND HAS A SPANKING NEW PRODUCTION PLANT IN CONSHOHOCKEN PA HE ALSO LIKES USX THEY SPENT A BILLION AND A HALF AND GOT COSTS DOWN AND WORTHINGTON INDUSTRIES WHOSE LASER WELDING TECHNIQUES LET IT PRODUCE HIGHQUALITY FINISHED STEEL PRODUCTS SUCH AS CARDOOR PARTS 9305110061 930511 WHAT'S NEWS BUSINESS AND FINANCE CLINTON'S ENERGY TAX WOULD SHOW UP AS A SEPARATE LINE ON UTILITY BILLS UNDER A PROPOSAL THAT THE PRESIDENT SAID HE WOULD ACCEPT THE ADMINISTRATION PREVIOUSLY WANTED UTILITIES TO PASS ON THE PROPOSED TAX TO CUSTOMERS BUT WITHOUT ITEMIZING IT THE CHANGE WOULD FREE UTILITIES FROM BEING FORCED TO GET THE PERMISSION OF STATE REGULATORS TO PASS ON THE TAX BEER IS LIKELY TO BE EXEMPTED FROM SIN TAXES THE CLINTON ADMINISTRATION PLANS TO PROPOSE TO PAY FOR ITS HEALTH PACKAGE NO DECISION HAS BEEN MADE ON TAXING OTHER ALCOHOLIC BEVERAGES BEER WOULD BE EXCLUDED BECAUSE IT IS SEEN AS A DRINK OF THE WORKING CLASS BUTCHER & SINGER'S TIES TO A BOND DEALER COOWNED BY AN AIDE TO NEW JERSEY'S GOVERNOR ARE BEING INVESTIGATED BY FEDERAL AUTHORITIES WHO ARE ATTEMPTING TO DETERMINE IF THE DEALER HELPED THE SECURITIES FIRM WIN BOND UNDERWRITING BUSINESS FROM THE STATE THE UNITED MINE WORKERS STRUCK THREE BIG COAL PRODUCERS AFTER A GROUP OF MINING COMPANIES BALKED AT THE UNION'S DEMAND THAT ITS MEMBERS GET ALL JOBS AT WHAT ARE NOW NONUNION MINES RUN BY THE COMPANIES' AFFILIATESSPS XXX THE DOLLAR SOARED AS BOND PRICES CLIMBED AND STOCKS FINISHED SLIGHTLY HIGHER PRUDENTIAL SECURITIES AGREED TO SELL 35 TROUBLED OIL AND GAS PARTNERSHIPS TO PARKER & PARSLEY PETROLEUM FOR 557 MILLION MOST OF WHICH WOULD GO TO MORE THAN 120000 INVESTORS IN THE PRUDENTIALBACKED PARTNERSHIPS COUNTING PRIOR PAYOUTS THE INVESTORS WOULD RECOVER 76 OF THEIR INVESTMENT THE DOLLAR JUMPED 24 AGAINST THE POUND 15 AGAINST THE MARK AND 13 AGAINST THE YEN THE DOW JONES INDUSTRIALS ROSE 609 POINTS BOND PRICES CLIMBED ABOUT 3/8 POINT GM'S CHEVROLET CAVALIER OUTSOLD ALL OTHER CARS MARKETED IN THE US IN APRIL HELPED BY ADS PROMOTING THE 12YEAROLD MODEL'S AFFORDABILITY THE SALES SURGE IS AN OUTGROWTH OF LOWERED MANUFACTURING COSTS THAT ALLOWED THE CAR MAKER TO CUT THE CAVALIER'S PRICE IBM AND BLOCKBUSTER ARE FORMING TWO JOINT VENTURES TO MARKET RETAIL SYSTEMS THAT COULD LET STORES MAKE ANY AUDIO COMPACT DISK IN SEVERAL MINUTES THE TECHNOLOGY COULD TRANSFORM THE ECONOMICS OF THE MUSIC BUSINESS MANY JAPANESE BANKS THAT LEND IN THE US HAVE STARTED FORECLOSING ON AMERICAN REAL ESTATE DEVELOPERS IN A DEPARTURE FROM THE BANKS' PRACTICE OF WAITING FOR THE BORROWERS TO RECOVER FRANCE UNVEILED A BUDGET PLAN CALLING FOR HEFTY TAX INCREASES COUPLED WITH SPENDING CUTS ILLUSTRATING HOW THE COUNTRY'S NEW CONSERVATIVE GOVERNMENT HAS PUT DEFICITCUTTING AHEAD OF ANY ECONOMIC STIMULUS SPENDING VANITY FAIR MAGAZINE'S PUBLISHER RON GALOTTI WAS FORCED OUT AFTER HE CLASHED WITH THE PUBLICATION'S PARENT CONDE NAST AMID A SLIDE IN THE MAGAZINE'S ADVERTISING INSIDERS SAID TOKYO STOCKS JUMPED 12 MONDAY TO A 14MONTH HIGH THE NIKKEI INDEX GAINED 24335 POINTS TO 2105471 IN LONDON SHARE PRICES ADVANCED 13 BONDS LEHMAN BROTHERS TREASURY INDEX 513012 UP 1664 COMMODITIES OIL 2044 A BARREL UNCHANGED DOW JONES FUTURES INDEX 12090 OFF 077 SPOT INDEX 11961 OFF 041 DOLLAR 11175 YEN UP 145 16074 MARKS UP 00236 9305110060 930511 LA FILA HOLDING SPA SHARES MILAN LA FILA HOLDING SPA AN ITALIAN SPORTSAPPAREL MAKER FILED PAPERS TO PLACE AMERICAN DEPOSITARY SHARES VALUED AT 30 OF ITS ORDINARY SHARE CAPITAL ON THE NEW YORK STOCK EXCHANGE FILA SAID IT PRESENTED A PROPOSAL TO THE US SECURITIES AND EXCHANGE COMMISSION TO PLACE 75 MILLION ADSS ON THE BIG BOARD IT SAID EVERY ADS HAS A VALUE OF FIVE OF ITS ORDINARY SHARES CURRENTLY FILA IS WHOLLY OWNED BY ITALIAN HOLDING COMPANY GEMINA SPA AND HAS NO LISTING ON THE MILAN EXCHANGE FILA SAID 58 OF ITS REVENUE COMES FROM THE US 9305110059 930511 INTERNATIONAL BRIEF BAT INDUSTRIES PLC BRITISH CONCERN SAYS PAYOUT IS RAISED ON ENHANCED SHARES BA T INDUSTRIES PLC SAID THE PAYOUT ON AN ENHANCED SHARE OFFERING HAS BEEN INCREASED THE BRITISH TOBACCO AND FINANCIAL SERVICES CONCERN SAID THE CASH PAYOUT TO SHAREHOLDERS WILL BE LIFTED TO 3322 PENCE A SHARE 52 US CENTS FROM 322 PENCE A SHARE AS A RESULT OF AN AGREEMENT BETWEEN SWISS BANK CORP AND BAT'S OWN BROKERS BARCLAYS DE ZOETE WEDD LTD IN MARCH BA T SAID IT WAS OFFERING NEW SHARES EQUIVALENT TO A DIVIDEND OF 339 PENCE A SHARE A 50 PREMIUM TO THE CASH VALUE OF THE 1992 PAYOUT IN TURN BARCLAYS SAID IT WOULD PURCHASE FROM SHAREHOLDERS ALL SUCH SHARES AT 322 PENCE EACH SWISS BANK SUBSEQUENTLY OFFERED 3322 PENCE A SHARE FOR THE ENHANCED STOCK THIS OFFER PREVIOUSLY HAD BEEN OPEN ONLY TO SHAREHOLDERS THAT DIDN'T ACCEPT THE BARCLAYS OFFER BUT HAS SINCE BEEN EXTENDED TO ALL HOLDERS HOLDERS WHO HAVE ACCEPTED THE BARCLAYS OFFER WILL RECEIVE AN ADDITIONAL 102 PENCE A SHARE PAYMENT IN LONDON TRADING YESTERDAY BA T SHARES CLOSED AT 880 PENCE A SHARE UP 17 PENCE 9305110058 930511 WHO'S NEWS ICN DIRECTOR RESIGNS POST AFTER 3 DAYS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL AVERY DENNISON CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN AN UNUSUAL REVERSAL RESIGNED AS A DIRECTOR OF EMBATTLED ICN PHARMACEUTICALS INC ONLY THREE DAYS AFTER HIS ELECTION TO THE ICN BOARD I RESIGNED FROM ICN'S BOARD OF DIRECTORS ON APRIL 29 AFTER DISCUSSIONS WITH AVERY DENNISON'S BOARD OF DIRECTORS CONCERNING MY TIME CONSTRAINTS MY ACTION DOES NOT REFLECT ANY NEGATIVE FEELING ABOUT ICN OR ITS BUSINESS POSSIBILITIES CHARLES D MILLER SAID IN A STATEMENT THE STATEMENT CAME AFTER ICN REFUSED TO RESPOND TO NUMEROUS TELEPHONE CALLS AND WRITTEN REQUESTS FOR INFORMATION ABOUT MR MILLER'S STATUS MADE BY THE WALL STREET JOURNAL AND OTHERS OVER THE PAST WEEK SHORTLY AFTER ICN ANNOUNCED MR MILLER'S ELECTION TO THE BOARD APRIL 26 REPORTS SURFACED THAT THE EXECUTIVE HAD CHANGED HIS MIND ABOUT ACCEPTING THE POST MR MILLER DECLINED THROUGH A COMPANY SPOKESWOMAN TO ELABORATE ON HIS STATEMENT THE SPOKESWOMAN SAID THE EXECUTIVE'S RESIGNATION CAME AFTER AFTER OUR BOARD MET ON THE 29TH MR MILLER NEVER ATTENDED AN ICN BOARD MEETING ICN'S BOARD HAS BEEN UNDER ATTACK BY A DISSIDENT SHAREHOLDER SEEKING TO OUST ALL THE INCUMBENT DIRECTORS AND INSTALL HIMSELF AND A NEW SLATE ICN DELAYED AN ANNOUNCEMENT TO GIVE CHAIRMAN MILAN PANIC A CHANCE TO TALK MR MILLER OUT OF HIS DECISION SAID A SPOKESMAN FOR THE COSTA MESA CALIF DRUG COMPANY BECAUSE OF THEIR VERY HEAVY TRAVEL SCHEDULES THEY WEREN'T ABLE TO MAKE CONTACT WITH EACH OTHER LAST WEEK THE SPOKESMAN DIDN'T KNOW IF THE TWO MEN EVENTUALLY TALKED ABOUT THE MATTER MR MILLER'S REVERSAL WAS A SETBACK TO ICN EFFORTS TO PLACATE CRITICAL SHAREHOLDERS BY STRENGTHENING THE BOARD MR MILLER WHO HEADS UP A GIANT OFFICEPRODUCTS CONCERN IN PASADENA CALIF IS WIDELY SEEN AS A STRONG EXECUTIVE WHO MIGHT HAVE STOOD UP TO ICN'S MR PANIC AND HELPED BRING SOME NEEDED CHANGES TO THE COMPANY I THOUGHT WHEN MR MILLER WAS ELECTED IT WAS A GOOD STEP IN THE RIGHT DIRECTION SO I'M DISAPPOINTED IN HIS RESIGNATION SAID EUGENE MELNICHENKO AN ICN SHAREHOLDER AND ANALYST AT LEGG MASON WOOD WALKER INC A BROKERAGE FIRM IN BALTIMORE THE ANALYST SAYS SOME UNHAPPY ICN SHAREHOLDERS FAVOR EVOLUTIONARY CHANGE AT THE COMPANY OVER AN OUSTER OF THE ENTIRE BOARD PROPOSED BY DISSIDENT SHAREHOLDER RAFI M KHAN SEPARATELY THREE ICN SUBSIDIARIES DISCLOSED IN THEIR CURRENT PROXY STATEMENTS THAT ICN'S BOARD AWARDED GOLDEN PARACHUTES COLLECTIVELY VALUED AT 61 MILLION TO SEVEN SENIOR EXECUTIVES THE AGREEMENTS ADOPTED BY ICN'S BOARD MARCH 18 PROVIDE THAT EACH EXECUTIVE RECEIVE SEVERANCE PAYMENTS EQUAL TO THREE TIMES ANNUAL SALARY PLUS CERTAIN OTHER BENEFITS IN THE EVENT OF A CHANGE IN CONTROL OF THE COMPANY THE ICN SPOKESMAN SAID THE AGREEMENTS HAD BEEN UNDER DISCUSSION FOR ABOUT TWO YEARS AND WEREN'T RELATED TO ANY SHAREHOLDER CRITICISM MR PANIC'S CONTRACT DATING BACK TO 1988 HAS A SIMILAR PROVISION THE SPOKESMAN SAID IN 1992 MR PANIC RECEIVED SALARY OF 545000 NOT INCLUDING A STOCK BONUS VALUED AT 57 MILLION WHEN IT WAS AWARDED ICN RECENTLY DELAYED ITS ANNUAL MEETING WHICH HAD BEEN SET FOR TOMORROW A FEDERAL COURT JUDGE IN NEW YORK HAS ISSUED AN ORDER TEMPORARILY BLOCKING MR KHAN FROM SOLICITING WRITTEN CONSENTS FROM OTHER SHAREHOLDERS TO GET RID OF MR PANIC AND ICN'S OTHER DIRECTORS IT ISN'T CLEAR IF THE JUDGE'S TEMPORARY ORDER COVERS A POSSIBLE PROXY FIGHT AT THE ANNUAL MEETING TWO ICN SUBSIDIARIES ICN BIOMEDICALS INC AND VIRATEK INC HAVE ANNUAL MEETINGS TODAY AT ICN HEADQUARTERS IN COSTA MESA A THIRD SUBSIDIARY SPI PHARMACEUTICALS INC HAS SCHEDULED ITS MEETING FOR TOMORROW 9305110057 930511 INTERNATIONAL BRIEF THYSSEN AG CONSORTIUM EXPLORES BUYING KLOECKNERWERKE STEEL UNIT THYSSEN AG CONFIRMED THAT A CONSORTIUM INCLUDING ITSELF AND FRIED KRUPP AG HOESCHKRUPP WAS INTERESTED IN NEGOTIATING THE TAKEOVER OF THE STEEL ACTIVITIES OF KLOECKNERWERKE AG ANY TAKEOVER HOWEVER WOULD BE CONDITIONAL ON AN APPROVAL OF KLOECKNERWERKE'S DEBTRESTRUCTURING PLAN BY THE INSOLVENT COMPANY'S CREDITORS THYSSEN ADDED THYSSEN DENIED HOWEVER A REPORT IN THE GERMAN NEWS MAGAZINE DER SPIEGEL THAT A DEAL HAS BEEN WRAPPED UP KLOECKNERWERKE'S SHAREHOLDERS WILL MEET JUNE 79 TO VOTE ON THE COMPANY'S RESTRUCTURING PLAN WHICH WILL ALLOW THE COMPANY TO WRITE OFF AROUND 14 BILLION MARKS 8848 MILLION OF ITS 27 BILLION MARKS IN DEBT THE EUROPEAN COMMUNITY COMMISSION LAST WEEK AGREED IN PRINCIPLE TO BACK THE PLAN AS REGARDED ITS 175 MILLION MARKS OF OUTSTANDING LOANS BUT LINKED ITS SUPPORT TO CUTS IN STEEL CAPACITY A COLDROLLED STEEL PLANT IN BREMEN GERMANY WILL BE KLOECKNERWERKE'S ONLY STEEL OPERATION FOLLOWING A RECENT AGREEMENT TO SELL ITS SPECIALTY STEEL UNIT AT GEORGSMARIENHUETTE GERMANY TO AN INVESTORS' GROUP 9305110055 930511 BUSINESS BRIEF DELTA AIR LINES GAY SPOUSES ARE RECOGNIZED BY FREQUENTFLIER PROGRAM IN A CHANGE OF POLICY DELTA AIR LINES IS PERMITTING GAY FREQUENTFLIER MEMBERS TO TRANSFER THEIR FREEFLIGHT AWARD CERTIFICATES TO THEIR PARTNERS THE MOVE APPLIES TO GAY MEN AND LESBIANS WHO LIVE IN CITIES WHERE SAMESEX COUPLES ARE LEGALLY RECOGNIZED MOST AIRLINES INCLUDING AMR CORP'S AMERICAN AIRLINES AND UAL CORP'S UNITED AIRLINES DO NOT IMPOSE RESTRICTIONS ON TRANSFERRING AWARDS ALTHOUGH SELLING AWARDS IS PROHIBITED DELTA ON THE OTHER HAND PERMITS MEMBERS TO TRANSFER AWARDS ONLY TO FAMILY MEMBERS INCLUDING SIBLINGS SPOUSES CHILDREN PARENTS OR INLAWS DELTA AGREED TO INCLUDE GAY SPOUSES AFTER THE CHANGE WAS REQUESTED BY HARRY TAYLOR AD DIRECTOR FOR OUT MAGAZINE A GAY PUBLICATION DELTA WAS VERY INTERESTED FROM THE BEGINNING MR TAYLOR SAYS IT ONLY TOOK THEM ABOUT THREE MONTHS DELTA SAYS IT HAS IDENTIFIED 13 CITIES INCLUDING NEW YORK SAN FRANCISCO LOS ANGELES AND SEATTLE WHERE SAMESEX COUPLES ARE LEGALLY RECOGNIZED 9305110054 930511 RESTORE GROWTH CUT THE CAPGAINS TAX BY JUDE WANNISKI AS CONGRESS'S TAX COMMITTEES REV UP EVERYONE IS TROUBLED BY THE STUBBORNLY HIGH LEVEL OF JOBLESSNESS IN AMERICA BUT SOMEHOW WASHINGTON NO LONGER UNDERSTANDS AS IT ONCE DID THE SPECIAL RELATIONSHIP BETWEEN JOB CREATION AND THE CAPITALGAINS TAX THE NUMBERS SHOW CLEARLY THAT MOST JOBS ARE CREATED BY NEW SMALL BUSINESSES BUT THOUGH THE GROSS NATIONAL PRODUCT SHOWS THE ECONOMY IS RECOVERING FROM RECESSION THE LEVEL OF NEW BUSINESS STARTUPS LAGS WELL BEHIND THE LEVEL OF THE 1980S NEW BUSINESS STARTUPS HAVE DECLINED STEADILY SINCE 1986 WHEN THEY PEAKED AT 703000 BEFORE FALLING IN EVERY SUBSEQUENT YEAR TO ONLY 628000 IN 1991 INCOMPLETE DATA FOR LAST YEAR SUGGEST A SMALL IMPROVEMENT BUT THE TOTAL STILL REMAINS FAR BELOW THE PREVIOUS PEAK NOTHING LIKE THIS EVER HAPPENED SINCE THESE DATA WERE FIRST GATHERED IN 1948 DURING EVERY PREVIOUS POSTWAR RECESSION BUSINESS STARTUPS EXCEEDED THEIR PREVIOUS PEAK AFTER A ONEYEAR DECLINE THIS EXPLAINS WHY A FEW OF US HAVE BEEN ARGUING SINCE THE 1986 TAX REFORM ACT THAT THE PRINCIPAL SOURCE OF OUR COUNTRY'S DIFFICULTIES IS THE CAPITALGAINS TAX THE LEGISLATION LOWERED THE TAX ON LABOR INCOME TO 28 AND PROTECTED LABOR INCOME FROM INFLATION THROUGH INDEXATION IT RAISED THE TAX ON CAPITAL GAINS THE REWARDS TO ENTREPRENEURIAL CAPITALISM TO 28 FROM 20 AND IT DID NOT PROTECT CAPITAL GAINS FROM INFLATION FAILURE TO INDEX CAPITAL GAINS WAS A VERY SERIOUS MISTAKE IT MEANT THAT THE REWARDS TO THE ENTREPRENEUR AND TO HIS SOURCE OF CAPITAL WOULD BE TAXED AT 28 PLUS THE INFLATION RATE COMPOUNDED OVER THE LIFE OF THE ENTERPRISE THE TOTAL COULD EXCEED 100 IF AN ENTERPRISE FAILED AND ITS ASSETS WERE SOLD THE ENTREPRENEUR MIGHT EVEN FACE A TAX ON THE INFLATED GAIN OF THE ASSETS AND BE FORCED TO SELL PERSONAL PROPERTY TO SATISFY INTERNAL REVENUE IT WAS ALAN GREENSPAN WHO FIRST CONVINCED ME A FEW YEARS AGO THAT THE CORRECT LEVEL OF TAX ON CAPITAL GAINS IS ZERO IT IS EASIER TO MAKE THE CASE TO ELIMINATE IT ENTIRELY THAN IT IS TO MERELY REDUCE THE RATE HE SAID IT IS A DIRECT TAX ON THE NATION'S STANDARD OF LIVING WHAT MR GREENSPAN MEANS IS THAT ALL ECONOMIC GROWTH IS THE RESULT OF RISKTAKING IF THERE IS NO RISKTAKING THERE WILL BE NO FAILURE BUT ALSO NO GAIN IF THERE IS LOTS OF RISKTAKING THERE IS LOTS OF FAILURE BUT ALSO LOTS OF GAIN A SOCIETY THAT IS RISKAVERSE WILL STAGNATE OR DECLINE A SOCIETY THAT ENCOURAGES RISKTAKING WILL ENJOY A RISING STANDARD OF LIVING AS THE SAYING GOES NOTHING VENTURED NOTHING GAINED IF YOU INCREASE THE REWARD FOR SUCCESS YOU WILL INCREASE THE AMOUNT OF RISKTAKING INVESTORS WILL PLAY LONG SHOTS INSTEAD OF PLAYING IT SAFE WITH GOVERNMENT BONDS OR BLUE CHIP INDUSTRIALS POTENTIAL ENTREPRENEURS WILL BE MORE LIKELY TO LEAVE SECURE JOBS WITH GOVERNMENT OR CORPORATE BUREAUCRACIES AND STRIKE OUT ON THEIR OWN IN AN ANXIOUS EXERCISE IN TRIAL AND ERROR CAPITALISM IS BUILT AROUND THE IDEA THAT GROWTH IS THE RESULT OF FAILURE EXCEPTIONAL GROWTH THE RESULT OF MULTIPLE FAILURES WHY IS IT SO DIFFICULT FOR OUR PROFESSIONAL ECONOMISTS TO UNDERSTAND THIS ALL THE COMPUTERS MAINTAINED BY ALL THE AGENCIES OF GOVERNMENT WILL TELL OUR POLITICAL LEADERS THAT A CUT IN THE CAPITALGAINS TAX WILL PRODUCE ALMOST NO CHANGE IN ECONOMIC ACTIVITY YET ECONOMISTS OF ALL STRIPES BELIEVE THAT ECONOMIC GROWTH DEPENDS ON INNOVATION AND TECHNOLOGICAL PROGRESS WHICH RAISE PRODUCTIVITY UNLESS THE GOVERNMENT MAKES A MISGUIDED ATTEMPT TO PICK THE WINNERS THOUGH DECIDING WHICH INNOVATIONS TO BET ON IS THE MOST UNCERTAIN OF ALL PROPOSITIONS FOR THIS REASON THE MORE RISK THE MARKET IS WILLING TO ABSORB THE GREATER THE LIKELIHOOD IT WILL BRING FORTH USEFUL INNOVATIONS THE UNCERTAINTY NECESSARILY INVOLVED CANNOT EASILY BE MEASURED OR REDUCED TO MATHEMATICAL NOTATION IF ALL GROWTH IS THE RESULT OF RISKTAKING NO DETERMINISTIC MODEL OF THE ECONOMY CAN BE USEFUL IN PROMOTING ECONOMIC GROWTH A GOVERNMENT THAT RELIES UPON WHAT SEN DANIEL PATRICK MOYNIHAN CALLS THE MONOPOLY MODEL TO INSPIRE ECONOMIC POLICY WILL SYSTEMATICALLY OVER TIME SMOTHER ALL GROWTH ECONOMISTS OF ALL SCHOOLS KEYNESIAN MONETARIST AND SUPPLYSIDE HAVE ARGUED THAT THE TAX ON CAPITAL GAINS CANNOT BE TOO DIFFERENT FROM THE TAX ON ORDINARY INCOME OR CLEVER PEOPLE WILL CONVERT ORDINARY INCOME TO CAPITAL GAINS AGAIN IN THE WORLD OF FINANCE THIS ARGUMENT IS RIDICULED MR GREENSPAN WHO EARNED HIS PHD IN ECONOMICS LATE IN LIFE BUT WHO CUT HIS TEETH ON WALL STREET TOLD ME HE HAD SPENT HIS ENTIRE WALL STREET CAREER TRYING TO FIGURE OUT HOW TO CONVERT OTHER INCOME TO CAPITAL GAINS WITHOUT SUCCESS THE ONLY REMAINING ARGUMENT AVAILABLE TO SUPPORTERS OF A CAPITALGAINS TAX IS THE FAIRNESS ARGUMENT WHILE ALAN BLINDER A MEMBER OF PRESIDENT CLINTON'S COUNCIL OF ECONOMIC ADVISERS GOES SO FAR AS TO AGREE THAT A LOWER CAPITALGAINS TAX WOULD IN FACT IMPROVE THE EFFICIENCY OF THE ECONOMY HE ADDS THAT IT MAY NOT BE SOCIALLY DESIRABLE TO HAVE SOME PEOPLE BECOME RICHER AS A RESULT BUT WITH NO REWARD THERE IS NO INCENTIVE TO TAKE RISKS AND THE ECONOMY SUFFERS IF THE CAPITALGAINS TAX WERE ELIMINATED CUT OR MERELY INDEXED THE PRIZE AT THE END OF THE COMPETITION WOULD INCREASE THE GOVERNMENT WOULD THEREBY ENCOURAGE MANY MORE PLAYERS TO ENTER THE RACE YET THE PRIZE WOULD ONLY GO TO THOSE WHO SUCCEED IF YOU DO NOT GET A CAPITAL GAIN THROUGH YOUR ENTERPRISE OF TRIAL AND ERROR THERE IS NO BENEFIT IN THE GREATER PRIZE FOR THE GOVERNMENT THIS PRODUCES THE GREATEST AMOUNT OF ECONOMIC ACTIVITY FOR THE SMALLEST OUTLAY OF FORGONE REVENUE BECAUSE THE GOVERNMENT TAXES ALL THE COMPETITORS WHILE THE RACE IS UNDER WAY VIA INCOME TAX SALES TAX BUSINESS TAX PROPERTY TAX ETC THE REVENUE FLOW FROM THIS SOURCE DWARFS THE AMOUNT LOST BY INCREASING THE PRIZE IF THE FEDERAL GOVERNMENT WERE TO INCREASE THE PRIZE RATHER THAN CUT IT EVERY POLITICAL JURISDICTION IN THE US WOULD EXPERIENCE AN INCREASE IN TAX REVENUE OF ALL POLITICAL SUBDIVISIONS NEW YORK CITY WOULD EXPERIENCE THE MOST REVENUE AS ECONOMIC ACTIVITY IN THE WORLD'S FINANCIAL CENTER WOULD BE CONCENTRATED AND WHITE HOT OFFICE SPACE WOULD FILL EMPLOYMENT WOULD SOAR CONSUMER SPENDING WOULD MULTIPLY ADVERTISING WOULD EXPAND AND TAXES WOULD BE LEVIED ALL ALONG THE WAY FILLING THE CITY COFFERS TO AN OVERFLOW NOT SEEN FOR GENERATIONS IF WHAT I SUGGEST HERE IS NOT DONE THE ECONOMY WILL NOT ADVANCE MUCH BEYOND THE LEVEL WE SEE NOW THE DEFICIT WILL CONTINUE TO EXPAND AND JOBLESSNESS WILL REMAIN AT VERY HIGH LEVELS ONCE THE GOVERNMENT MAKES IT IMPOSSIBLE FOR THE MARKET TO MAKE MYRIAD BETS ON MYRIAD HORSES PRIVATE RISKTAKING DWINDLES AND THE STATE STEPS UP TO THE BETTING WINDOW WITH CASH TAXED OR BORROWED FROM THE PEOPLE THE PRESIDENT'S ECONOMISTS RECOMMENDED SOME GESTURES TOWARD PRIVATE INVESTMENT BUT THESE ARE ALL GENERALLY RISK AVERSE AN INVESTMENT TAX CREDIT IS VERY EXPENSIVE TO THE GOVERNMENT AND PRODUCES VERY LITTLE GROWTH IT IS THE EQUIVALENT OF A RACETRACK HANDING OUT FREE SADDLES TO ALL HORSES WHO ENTER THE RACE TO ENCOURAGE THEM TO ENTER IT DOES NOTHING TO THE SIZE OF THE PRIZE SIMILARLY THE TARGETED CAPITALGAINS DIFFERENTIAL FOR SMALL COMPANIES NOT ONLY LIMITS THE PRIZE TO NEW HORSES WHO HAVE NOT RUN BEFORE IT LIMITS THE SIZE OF THE HORSES AND CAPS THE SIZE OF THE PRIZE ECONOMIC POLICY SHOULD HAVE JUST ONE OVERRIDING OBJECTIVE TO ENABLE THE CAPITAL MARKETS TO TAKE MORE RISK AT THE MARGIN FISCAL POLICY SHOULD PLACE THE LEAST BURDEN ON THE REWARDS TO THOSE WHO TAKE UNINSURABLE RISK MONETARY POLICY SHOULD MAKE THE CURRENCY A RELIABLE STORE OF VALUE TO PREVENT INFLATION RISK FROM INTERFERING WITH ENTREPRENEURIAL DECISIONS REGULATORY POLICY SHOULD SET THE FEWEST HURDLES IN FRONT OF NEW ENTERPRISE OUR PARENTS AND GRANDPARENTS CAME TO THIS COUNTRY BECAUSE IT WAS THE ONLY PLACE IN THE WORLD WHERE YOUTHFUL POTENTIAL WAS NOT LIMITED BY BLOOD KINSHIP OR SOCIAL STATUS WE COULD BE A MELTING POT WHERE ETHNIC RACIAL AND RELIGIOUS DIFFERENCES WOULD BE LESS IMPORTANT THAN IN THE REST OF THE WORLD AS A MEANS OF SECURING ACHIEVEMENT AS LONG AS THERE IS ECONOMIC GROWTH PEOPLE CAN SOMEHOW GET ALONG WITH EACH OTHER AND ECONOMIC GROWTH CAN OCCUR ONLY IF PEOPLE ARE ALLOWED TO BECOME RICH IN ONE WAY OR ANOTHER STRIVING FOR FAME OR FORTUNE BY TAKING CHANCES EVERY STEP OF THE WAY MR WANNISKI IS PRESIDENT OF POLYCONOMICS A NEW JERSEYBASED GROUP 9305110053 930511 COMMODITIES GOLD PRICES RETREAT SLIGHTLY ON PROFITTAKING BUT SURVEY REPORTS IMPROVING DEMAND OUTLOOK BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES RETREATED MARGINALLY ON PROFITTAKING YESTERDAY BUT A REPORT RELEASED HERE AND IN LONDON BY A LEADING TRADE GROUP SUGGESTS THAT AN IMPROVING SUPPLYANDDEMAND OUTLOOK FOR THE METAL SHOULD CONTINUE TO BOOST PRICES THIS YEAR IN RELATIVELY QUIET TRADING ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR JUNE DELIVERY FELL 20 CENTS TO SETTLE AT 35720 TRADERS SAID THE RELEASE OF THE AUTHORITATIVE ANNUAL GOLD SURVEY BY GOLD FIELDS MINERALS SERVICES HAD LITTLE IMMEDIATE IMPACT ON FUTURES PRICES THEY SAID THAT MUCH OF THE SURVEY'S CONCLUSIONS THAT DEMAND IS STRONG AND GROWING STRONGER IN ASIA FOR INSTANCE HAD ALREADY BEEN FACTORED BY THE MARKET THE SURVEY SAID THE CHINESE PRIVATESECTOR ABSORBED AT LEAST 350 TONS OF GOLD LAST YEAR ON A CONSERVATIVE BASIS AND WAS SET TO ABSORB MORE THIS YEAR CHINESE DEMAND FOR INVESTMENTGRADE JEWELRY THE SURVEY SAID WAS DRIVEN BY CONCERN ABOUT INFLATION AND THE DEPRECIATION OF THE YUAN THE CHINESE CURRENCY THE SURVEY CAUTIONED HOWEVER THAT CHINESE AUTHORITIES MIGHT BE TEMPTED TO IMPOSE AUSTERITY MEASURES TO CLAMP DOWN ON INFLATION WHICH MIGHT RESULT IN A SHARP DROP IN GOLD CONSUMPTION NOTING THAT CHINA IS NOW THE WORLD'S LARGEST CONSUMER OF GOLD PHILIP KLAPWIJK A GFMS METALS ANALYST SAID ASIAN DEMAND WAS LESS PRICESENSITIVE THAN SOME RECENT NEWS REPORTS FROM THE REGION HAVE SUGGESTED SOME REPORTS HAVE SAID THAT CONSUMER PURCHASES IN ASIA HAVE DIMINISHED IN RECENT WEEKS AS A RESULT OF THE SURGE IN GOLD FUTURES PRICES TO CURRENT LEVELS FROM SEVENYEAR LOWS AT THE BEGINNING OF THE YEAR STEWART MURRAY CHIEF EXECUTIVE OF GFMS SAID THAT WHILE IMPROVING SUPPLY AND DEMAND FACTORS HAD LAID THE FOUNDATION FOR GOLD'S RECENT RISE HE ACKNOWLEDGED AT A NEWS CONFERENCE IN LONDON THAT THE RECENT SURGE IN GOLD PRICES WAS CHIEFLY THE RESULT OF SPECULATIVE PLAYS WHILE THE PRICE RISE OVER THE LAST FEW WEEKS HAS RESULTED FROM THE ACTIVITIES OF INVESTORS AND SPECULATORS HE SAID THE FOUNDATIONS FOR THIS RECOVERY WERE LAID LAST YEAR IN THE FORM OF THE BUOYANT DEMAND DOCUMENTED IN THIS YEAR'S GFMS GOLD SURVEY ASKED WHETHER THE CURRENT GOLD RALLY IS SUSTAINABLE WITHOUT ANY FUNDAMENTAL INFLATION THREAT LOOMING ON THE HORIZON MR KLAPWIJK SKIRTED THE ISSUE AND SAID THAT THE FUNDAMENTALS FLATTENING SUPPLY AND GROWING DEMAND FOR GOLD POINT TO HIGHER PRICES HE ADDED HOWEVER THAT WESTERN GOVERNMENTS MAY SOON BE TEMPTED TO STIMULATE THEIR ECONOMIES TO CREATE JOBS WHICH COULD TRIGGER A ROUND OF INFLATIONARY EXPECTATIONS THAT WOULD BOLSTER THE METAL'S PRICE MR KLAPWIJK SAID THAT THE SURGING GOLD PRICES HAVE YET TO PERSUADE MAJOR GOLD PRODUCERS TO INCREASE PRODUCTION RATES WHICH HAVE BEEN SUBPAR FOR YEARS BECAUSE OF WEAK GOLD PRICES DURING A 13YEAR BEAR MARKET IN OTHER COMMODITY MARKETS LIVESTOCK & MEATS PRICES OF HOG AND PORK BELLY FUTURES CONTRACTS FELL AMID REPORTS OF A CONTINUING FLOOD OF MATURE HOGS READY FOR SLAUGHTER IN CHICAGO MERCANTILE EXCHANGE TRADING THE HOG CONTRACT FOR JUNE DELIVERY DROPPED 15 CENTS A POUND TO SETTLE AT 5067 CENTS A POUND DAN VAUGHT A LIVESTOCK ANALYST AT AG EDWARDS & SONS IN ST LOUIS MO SAID THE NATION'S MEATPACKERS ARE SLAUGHTERING ROUGHLY 10 MORE HOGS COMPARED WITH THE SIMILAR 1992 WEEKS THE MEATPACKING INDUSTRY KILLED ABOUT 18 MILLION HOGS LAST WEEK SOME OF THESE HOGS NORMALLY WOULD HAVE BEEN SLAUGHTERED EARLIER IN THE YEAR BUT THEIR GROWTH RATES WERE DELAYED BY POOR QUALITY FEED WHICH WAS THE RESULT OF LAST YEAR'S RAINDELAYED CORN HARVEST TRADERS AREN'T CLEAR HOW LONG THE SUPPLY SURGE WILL LAST THE SLAUGHTER USUALLY TAPERS OFF IN JUNE AS THE SUPPLY OF FATTENED HOGS HITS A SEASONAL LOW ENERGY NATURALGAS PRICES TUMBLED AGAIN IN ACTIVE TRADING AS AN INCREASING NUMBER OF BUYERS EXPECT SHORTTERM SUPPLIES TO BE PLENTIFUL THIS MONTH THAT PERCEPTION RUNS IN SHARP CONTRAST TO LAST MONTH WHEN MARKET PLAYERS RAPIDLY BID UP CONTRACTS TO RECORD HIGHS AS SUPPLIES WERE HARD TO FIND ON THE NEW YORK MERCANTILE EXCHANGE NATURAL GAS FOR JUNE DELIVERY SETTLED AT 2082 A MILLION BRITISH THERMAL UNITS DOWN EIGHT CENTS THE JULY CONTRACT FELL 69 CENTS TO 2066 CENTS A MILLION BTUS MEANWHILE CRUDE OIL AND PETROLEUM PRODUCT PRICES WERE LITTLE CHANGED IN LIGHT NARROW TRADING JUNE CRUDE WAS UNCHANGED AT 2044 A BARREL ON THE NEW YORK MERC THE JULY CONTRACT SLID TWO CENTS A BARREL TO 2060 GASOLINE AND HEATING OIL PRICES ROSE SLIGHTLY NEIL BEHRMANN CONTRIBUTED TO THIS ARTICLE 9305110052 930511 TELESAT MOBILE ASKS CREDITORS TO CLEAR TAKEOVER BY BCE BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA TELESAT MOBILE INC A FINANCIALLY TROUBLED TELECOMMUNICATIONS CONCERN IS ASKING ITS CREDITORS TO APPROVE A 225 MILLION CANADIAN DOLLAR US1772 MILLION RESCUE PLAN THAT CALLS FOR A TAKEOVER OF THE COMPANY BY BCE INC UNDER THE PLAN BCE A MONTREALBASED HOLDING COMPANY WOULD ACQUIRE ALL TELESAT MOBILE'S COMMON SHARES FOR C120 MILLION THE PLAN ALSO CALLS FOR THE FEDERAL GOVERNMENT'S COMMUNICATIONS DEPARTMENT TO PROVIDE TELESAT MOBILE WITH C105 MILLION IN FUNDING THROUGH ADVANCE PAYMENTS ON A GOVERNMENT CONTRACT TELESAT MOBILE IS CURRENTLY OWNED 80 BY TELESAT CANADA WHICH OPERATES CANADA'S DOMESTIC SATELLITE SYSTEM AND 20 BY ITOCHU CORP A MAJOR JAPANESE TRADING COMPANY TELESAT CANADA IS MOSTLY OWNED BY CANADA'S MAJOR TELEPHONE COMPANIES TELESAT MOBILE SOUGHT PROTECTION FROM CREDITORS BECAUSE IT HADN'T BEEN ABLE TO SECURE ADDITIONAL FUNDING TO MEET THE RISING COSTS OF BUILDING A MOBILE SATELLITE COMMUNICATIONS NETWORK ITS SYSTEM IS BEING DEVELOPED IN TANDEM WITH THAT OF A SIMILAR US SERVICE PROVIDER AMERICAN MOBILE SATELLITE CORP WASHINGTON DC BOTH COMPANIES HAVE ANNOUNCED PLANS TO LAUNCH THEIR SATELLITES NEXT YEAR TO PROVIDE VOICE DATA AND OTHER COMMUNICATIONS SERVICES TO VARIOUS POTENTIAL CUSTOMERS INCLUDING PLANES SHIPS AND TRUCKS AMERICAN MOBILE IS 32OWNED BY MCCAW CELLULAR COMMUNICATIONS INC ITS OTHER PARTNERS INCLUDE HUGHES COMMUNICATIONS INC A UNIT OF GENERAL MOTORS CORP WITH A 29 INTEREST AND MTEL CORP ALSO WITH A 29 INTEREST TELESAT MOBILE'S CREDITORS ARE TO VOTE ON THE RESTRUCTURING PLAN MAY 25 ROBERT FERCHAT THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE SAID MAJOR CREDITORS HAVE INDICATED THEY WILL APPROVE THE PROPOSAL TELESAT MOBILE HAS REPORTED DEBTS OF ABOUT C140 MILLION ITS BIGGEST CREDITOR IS ITS PARENT COMPANY TELESAT CANADA WHICH IS OWED C35 MILLION THE PLAN PROVIDES FOR ALL CREDITORS TO BE PAID IN FULL MR FERCHAT SAID THE PROPOSAL ALSO CALLS FOR HOLDERS OF COMMON STOCK TO RECEIVE PARTICIPATING PREFERRED SHARES IN EXCHANGE FOR THEIR HOLDINGS TELESAT MOBILE AND AMERICAN MOBILE HAVE CONTRACTED WITH THE TEAM OF SPAR AEROSPACE LTD TORONTO AND HUGHES AIRCRAFT CO LOS ANGELES TO BUILD THE TWO MOBILE COMMUNICATIONS SATELLITES THAT ARE TO BE LAUNCHED IN 1994 HUGHES AIRCRAFT ALSO IS A UNIT OF GM MR FERCHAT SAID THE LAUNCHING OF TELESAT MOBILE'S SATELLITE WILL STILL OCCUR IN 1994 BUT HE SAID THAT BECAUSE OF THE COMPANY'S FINANCIAL PROBLEMS IT WILL NOW BE SEVERAL MONTHS LATER THAN THE SPRING DATE ORIGINALLY SCHEDULED WE ARE CONFIDENT THAT THE FILING OF THIS PROPOSAL MARKS THE REBIRTH OF THE COMPANY HE SAID BCE CLOSED ON THE TORONTO STOCK EXCHANGE YESTERDAY AT C4425 DOWN 25 CENTS BCE'S HOLDINGS INCLUDE BELL CANADA THE COUNTRY'S LARGEST TELEPHONE UTILITY 9305110051 930511 MARKETING & MEDIA ADVERTISING JOHNSON & JOHNSON TRIES TO SHAPE HEALTHCARE DEBATE WITH TV AD BY ELYSE TANOUYE TELEVISION ADVERTISERS USE BABIES TO SELL EVERYTHING FROM SUNTAN LOTION TO CARPETS AND TIRES NOW JOHNSON & JOHNSON HOPES BABIES WILL HELP SELL ITS IDEAS ON HEALTHCARE REFORM THE HEALTHCARE PRODUCTS GIANT ON MOTHER'S DAY LAUNCHED A TELEVISION COMMERCIAL FEATURING DREAMY IMAGES OF INFANTS CHILDREN AND MOTHERS THE MESSAGE AT JOHNSON & JOHNSON WE BELIEVE KEEP THE CHILDREN WELL AND YOU CAN HEAL A NATION THE AD WHICH ADVOCATES A HEALTHCARE REFORM PROGRAM THAT EMPHASIZES PREVENTION IS ONE OF THE FIRST ATTEMPTS BY A HEALTHCARE COMPANY TO USE TELEVISION TO SELL ITS HEALTHCARE REFORM POSITION TO THE PUBLIC IT IS ALSO THE MOST VISIBLE EXAMPLE OF THE INDUSTRY'S RECENT PUSH TO COUNTER ITS DARKENING IMAGE AS PRICEGOUGING MEDICINE MEN AND TO SHAPE THE HEALTHCARE REFORM DIALOGUE THROUGH MASS MEDIA ADVERTISEMENTS AND LETTERWRITING CAMPAIGNS TO CONGRESS JOHNSON & JOHNSON SAYS THE COMMERCIAL IS PART OF A 15 MILLION PUBLICINFORMATION PROGRAM BEGUN LAST YEAR FOCUSING ON MATERNAL AND CHILD HEALTH A 30SECOND COMMERCIAL LAST YEAR CALLED ATTENTION TO THE GOVERNMENT'S HEALTHY START PROGRAM TO HELP REDUCE US INFANT MORTALITY RATES A THIRD COMMERCIAL WILL AIR LATER IN MAY ON PREVENTING CHILDHOOD INJURY WHILE ANALYSTS AND ADVERTISING EXECUTIVES THINK THE JOHNSON & JOHNSON AD IS APPEALING THEY DOUBT IT OR OTHER INDUSTRY EFFORTS WILL INFLUENCE THE POLITICAL DEBATE TO ANY SIGNIFICANT DEGREE THE INDUSTRY IS DOING TOO LITTLE TOO LATE SAYS HEMANT SHAH AN INDEPENDENT ANALYST COVERING THE PRESCRIPTION DRUG INDUSTRY FOR YEARS PUBLIC RESENTMENT TOWARD THE INDUSTRY HAS BEEN GROWING OVER RISING PRESCRIPTION DRUG PRICES BUT PHARMACEUTICAL COMPANIES FAILED TO RESPOND HE ASSERTS THE INDUSTRY HAS BEEN A DISASTER FROM A PUBLIC RELATIONS POINT OF VIEW HE SAID THEY NEVER HAVE TRIED TO GET THEIR MESSAGE TO THE PEOPLE BUT NOW THEY ARE TRYING AND PAYING BIG MONEY TO DO IT THE JOHNSON & JOHNSON COMMERCIAL WAS EXPENSIVE FOR ITS GENRE AT 60 SECONDS IT WAS LONGER THAN MOST PUBLICSERVICE MESSAGES AND WHILE MOST PUBLICSERVICE ADS TAKE POTLUCK IN FREE AIRTIME JOHNSON & JOHNSON PAID TO ENSURE ITS SPOT WOULD APPEAR DURING SEVEN NETWORK NEWS AND PUBLIC INTEREST SHOWS INCLUDING 60 MINUTES AND FACE THE NATION AND ON CABLE NEWS NETWORK JOHNSON & JOHNSON WILL RUN THE AD AGAIN NEXT WEEK A SPOKESMAN SAYS BUT HASN'T DETERMINED IF IT WILL CONTINUE TO AIR THE COMMERCIAL AFTER THAT THE AD PRODUCED BY LINTAS COST A COUPLE OF MILLION DOLLARS THE SPOKESMAN SAYS FLASHING STILL IMAGES OF SMILING BAREBOTTOMED BABIES AND RADIANT MOTHERS THE COMMERCIAL ADVOCATES PRENATAL CARE IMMUNIZATION FOR EVERY TODDLER AND PREVENTION OF CHILDHOOD INJURIES THE COMPANY'S SUPPORT FOR PROGRAMS SUCH AS HEALTHY START HEAD START AND NATIONAL SAFE KIDS CAMPAIGN ARE BRIEFLY MENTIONED AMID ALL THE RHETORIC BEING TOSSED AROUND SAYS RALPH S LARSEN JOHNSON & JOHNSON CHAIRMAN WE BEGAN TO BECOME CONCERNED THAT NOT ENOUGH ATTENTION WAS BEING FOCUSED ON PREGNANT WOMEN AND CHILDREN AND WE WANTED TO ADDRESS THAT JACK TROUT OF TROUT & RIES MARKETING CONSULTANTS BASED IN GREENWICH CONN CRITICIZES THE AD AS TOO VAGUE IN ITS RECOMMENDATIONS TO BE POLITICALLY EFFECTIVE I DON'T THINK IT HONED IN TIGHT ENOUGH ON THE ISSUES HE SAYS BUT THE COMMERCIAL REACHED MORE PEOPLE THAN THE OPEN LETTER PRINT ADS THE INDUSTRY HAS RELIED ON IN THE PAST FEW MONTHS HE BELIEVES MR LARSEN DENIES THAT JOHNSON & JOHNSON RAN ITS OWN AD OUT OF DISSATISFACTION WITH INDUSTRY EFFORTS BUT HE SAYS I THINK THE INDUSTRY COULD DO A MUCH BETTER JOB OF COMMUNICATING ITS VERY IMPORTANT CONTRIBUTIONS TO THE AMERICAN PUBLIC THAN IT HAS IN THE PAST AFTER INITIALLY RELYING ON THE INDUSTRY'S TRADE GROUP THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION TO SPEAK FOR THEM OTHER DRUG COMPANIES ARE TAKING OFF ON THEIR OWN TO TRY TO SWAY THE PUBLIC ON HEALTHCARE REFORM MERCK GLAXO A DIVISION OF GLAXO HOLDINGS AND SCHERINGPLOUGH CORP HAVE RUN THEIR OWN PRINT ADVERTISEMENTS ON HEALTHCARE ISSUES AND SEVEN MAJOR PHARMACEUTICAL COMPANIES HAVE JOINED FORCES IN A 2 MILLION 90DAY NATIONAL PUBLIC RELATIONS CAMPAIGN BLITZ TO COUNTER CRITICISM OF THE PHARMACEUTICAL INDUSTRY BY THE WHITE HOUSE MEANWHILE THE PMA CONTINUES ITS PRINT ADVERTISING PROGRAM WHICH IT SAYS ISN'T ANY LARGER THAN WHAT IT HAS DONE IN PAST YEARS AND IT IS COORDINATING A LETTERWRITING CAMPAIGN AMONG EMPLOYEES AT 27 PHARMACEUTICAL COMPANIES MORE THAN A HALFMILLION LETTERS HAVE BEEN SENT BY THE COMPANIES TO THEIR EMPLOYEES AND IN SOME CASES RETIREES SHAREHOLDERS VENDORS AND NEARBY COMMUNITY RESIDENTS URGING THEM TO WRITE TO CONGRESS IN SUPPORT OF THE INDUSTRY A PMA SPOKESMAN SAYS BUT EVEN INDUSTRY SUPPORTERS WONDER WHETHER THE EFFORTS TO INFLUENCE THE PUBLIC AND CONGRESS IN ADVANCE OF THE CLINTON HEALTHCARE REFORM PROPOSAL WILL WORK WHATEVER THE INDUSTRY SAYS TODAY WILL BE VIEWED AS SOMEWHAT SELFSERVING AND POLITICIANS CAN ATTACK IT AS THAT SAYS STEVEN GIRGENTI CHAIRMAN OF GIRGENTI HUGHES BUTLER & MCDOWELL INC A MEDICAL ADVERTISING AGENCY REP RON WYDEN D ORE SAYS HE'S SEEN A NUMBER OF INDUSTRY ADVERTISEMENTS WITH PEOPLE REJOICING AT WHAT DRUG THERAPIES CAN DO DRUGS CAN MAKE IMPORTANT CONTRIBUTIONS HE SAYS BUT THE QUESTION IS WHETHER PEOPLE ARE GETTING REAL VALUES BILL WESTBROOK A TOP CREATIVE DIRECTOR AT WPP GROUP'S MARTIN AGENCY RICHMOND VA IS WEIGHING A JOB OFFER FROM ANOTHER WPP UNIT MINNEAPOLIS AGENCY FALLONMCELLIGOTT HE IS EXPECTED TO MAKE A DECISION BY THE END OF THIS WEEK EXECUTIVES ARE WATCHING THE DECISION CLOSELY SHOULD MR WESTBROOK 48 YEARS OLD ACCEPT THE MINNEAPOLIS OFFER HIS DEPARTURE WOULD BE THE THIRD FROM THE BIG MERCEDESBENZ ACCOUNT IN THE PAST MONTH LAST MONTH TWO CREATIVE EXECUTIVES AT WPP GROUP'S SCALI MCCABE SLOVES IN NEW YORK LARRY HAMPEL AND DEAN STEFANIDES LEFT THE MERCEDES ACCOUNT TO JOIN A NEW NEW YORK SHOP SCALI MCCABE CREATES MERCEDESBENZ'S NATIONAL BRAND ADVERTISING AND IS ITSELF RECRUITING CREATIVE TALENT MARTIN AGENCY CREATES MERCEDES'S RETAIL ADVERTISING PAT FALLON CHAIRMAN OF FALLONMCELLIGOTT DENIED AN ACCOUNT IN ADWEEK MAGAZINE THAT THE OVERTURE INCLUDED AN OFFER TO CHANGE FALLONMCELLIGOTT'S NAME BY PUTTING MR WESTBROOK'S ON THE DOOR IT'S NOT TRUE HE SAID MR WESTBROOK THROUGH A SPOKESWOMAN DECLINED TO COMMENT ON THE MATTER BEYOND SAYING HE IS CONSIDERING THE OFFER FALLONMCELLIGOTT HAS BEEN LOOKING BOTH INSIDE AND OUTSIDE THE AGENCY FOR A NEW CREATIVE DIRECTOR SINCE PAT BURNHAM WHO WORKED THERE FOR MORE THAN A DECADE RESIGNED EARLIER THIS YEAR AN ENVIRONMENTALIST ACTIVIST GROUP PLACED A FULLPAGE ADVERTISEMENT IN THE NEW YORK TIMES YESTERDAY TAKING ON GIANT MITSUBISHI CORP FOR CAUSING THE SENSELESS DEATH OF MILLIONS OF ACRES OF RAINFORESTS ACROSS THE GLOBE THE AD PLACED BY THE SAN FRANCISCOBASED RAINFOREST ACTION NETWORK CALLED FOR A BOYCOTT OF ALL MITSUBISHI PRODUCTS INCLUDING TELEVISION SETS AND CARS AS WELL AS NIKON CAMERAS KIRIN BEER AND VALUE RENTACAR AND THE BANK OF CALIFORNIA THE AD URGED INDIVIDUALS TO CALL AN 800 NUMBER WHICH ARE USUALLY TOLLFREE BUT IN THIS CASE COSTS 975 A CALL TO HAVE THREE TELEGRAMS SENT TO AMONG OTHERS THE PRESIDENT OF MITSUBISHI IN ORDER TO PROTEST MITSUBISHI'S SALE OF PLYWOOD PAPER AND FANCY VENEERS THAT ARE ACTUALLY MADE FROM RAINFOREST WOOD MICHAEL MARX AN OFFICIAL WITH THE RAINFOREST ACTION NETWORK SAYS THE AD WHICH COST 18000 TO PLACE WAS ORDERED AFTER THE ORGANIZATION SAYS IT TRIED TO MEET WITH MITSUBISHI EXECUTIVES FOR MORE THAN THREE YEARS WITHOUT SUCCESS MORE ADS ARE IN THE WORKS HE SAYS A MITSUBISHI SPOKESMAN SAYS THERE IS NO TRUTH TO WHAT THEY ARE SAYING THE ALLEGATIONS ARE TOTALLY GROUNDLESS THIS HAS BEEN AROUND SINCE 1989 THEY ARE TARGETING MITSUBISHI FOR THE DESTRUCTION OF THE RAIN FOREST REVIEW COMEDY CENTRAL THE COMEDY CABLE TELEVISION STATION IS REVIEWING ITS ESTIMATED 3 MILLION ACCOUNT CURRENTLY AT SCHNURR & JACKSON A TROY NY SHOP CONTENDERS INCLUDE THE INCUMBENT AND NEW YORK SHOPS SAATCHI & SAATCHI CO'S CLIFF FREEMAN & PARTNERS WHICH HANDLED ADVERTISING FOR THE OLD COMEDY CHANNEL AND KIRSHENBAUM & BOND A DECISION IS EXPECTED SOME TIME THIS SUMMER A SPOKESMAN SAID ALVIN ACHENBAUM A NEW YORK CONSULTANT IS HANDLING THE REVIEW COMEDY CENTRAL IS A JOINT VENTURE OF TIME WARNER'S HOME BOX OFFICE AND VIACOM'S MTV NETWORKS CHIAT/DAY THE VENICE CALIF AGENCY SAID IT IS CLOSING ITS ATLANTA SERVICE OFFICE AND RELOCATING THE REGIONAL OPERATIONS AND SPOT TELEVISION BUYING OPERATIONS FOR ITS BIG NISSAN CLIENT TO A NEW OFFICE IN WASHINGTON 9305110050 930511 TECHNOLOGY LOTUS UNVEILS NEW PACKAGE CAMBRIDGE MASS LOTUS DEVELOPMENT CORP UNVEILED ITS 123 RELEASE 4 SPREADSHEET PACKAGE FOR USE WITH MICROSOFT CORP'S WINDOWS OPERATING PROGRAM LOTUS SAID THE NEW PRODUCT INCLUDES THE ABILITY TO TRACK CHANGES IN SPREADSHEETS SHARED AMONG WORK GROUPS AND OTHER NEW FEATURES THE NEW PACKAGE WILL HAVE A SUGGESTED RETAIL PRICE OF 495 LOTUS SAID THE PRODUCT WILL BE SHOWN PUBLICLY FOR THE FIRST TIME TODAY AT A SAN FRANCISCO NEWS CONFERENCE THE COMPANY ADDED THAT THE SOFTWARE PACKAGE IS UNDERGOING FINAL TESTING WITH CUSTOMERS AND WILL BE AVAILABLE IN THE US IN JUNE LOTUS ALSO SAID IT HAS BEGUN SHIPMENTS OF LOTUS NOTES RELEASE 3 AN UPDATED VERSION OF ITS WORKGROUP COMPUTING PLATFORM 9305110049 930511 CREDIT MARKETS LONGBOND PRICES RISE SLIGHTLY BUT OTHER ISSUES ARE FLAT AS INVESTORS AWAIT TREASURY REFUNDING BY TOM HERMAN AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LONGTERM BOND PRICES ROSE SLIGHTLY BUT MOST OTHER ISSUES WERE FLAT IN VERY LIGHT TRADING AS INVESTORS BRACED FOR A TIDAL WAVE OF TREASURY BORROWING THE TREASURY'S BENCHMARK 30YEAR BONDS GAINED ABOUT 3/8 POINT OR ABOUT 375 FOR EACH 1000 FACE AMOUNT TO 103 30/32 THEIR YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DIPPED TO 681 FROM 684 PRICES OF MORTGAGEBACKED AND INVESTMENTGRADE CORPORATE BONDS WERE FLAT TO SLIGHTLY HIGHER MUNICIPAL BONDS WERE MIXED TODAY THE TREASURY WILL SELL ABOUT 16 BILLION OF NEW THREEYEAR NOTES THAT AUCTION WILL BE THE FIRST OF A THREEPART 35 BILLION GOVERNMENT QUARTERLY FINANCING OPERATION TOMORROW THE TREASURY WILL SELL 10YEAR NOTES FOLLOWED BY AN AUCTION OF 30YEAR BONDS THURSDAY CONCERN ABOUT ALL THIS BORROWING HELPED DEPRESS BOND PRICES AND DRIVE UP INTEREST RATES LATE LAST WEEK SOME TRADERS EXPECT FURTHER RATE INCREASES OVER THE NEXT FEW DAYS BECAUSE OF THE TREASURY BORROWING MY FEELING IS RATES WILL HAVE TO MOVE HIGHER IN ORDER TO DISTRIBUTE ALL THIS PAPER TO INVESTORS SAID ROBERT D SBARRA MANAGING DIRECTOR AT CARROLL MCENTEE & MCGINLEY INC A US GOVERNMENT SECURITIES DEALER THE MILDLY BEARISH MOOD THAT GRIPPED THE BOND MARKETS LATE LAST WEEK CONTINUED EARLY YESTERDAY AS TREASURY BOND PRICES SLIPPED AND YIELDS ROSE BUT THE SELLING PRESSURE SOON FADED SURPRISING TRADERS BETTING ON EVEN LOWER PRICES IN ADVANCE OF THE TREASURY'S BORROWING BINGE THIS WEEK SOME TRADERS THEN BOUGHT BONDS TO OFFSET THEIR PREVIOUSLY ESTABLISHED SHORT POSITIONS IN A SHORT POSITION A DEALER SELLS BORROWED SECURITIES IN HOPES OF REPURCHASING THE BONDS LATER AT LOWER PRICES POCKETING THE DIFFERENCE INVESTORS ALSO WILL HAVE A LARGE VOLUME OF NEW TAXFREE MUNICIPAL BOND ISSUES TO CHOOSE FROM THIS WEEK BUT WITH THE CLINTON ADMINISTRATION PRESSING HARD FOR HIGHER TAXES TAXFREE BONDS ARE LIKELY TO REMAIN EXCEPTIONALLY POPULAR IN COMING MONTHS INVESTMENT ADVISERS PREDICT TAXFREE BONDS STILL OFFER HIGHLY ATTRACTIVE RETURNS FOR UPPERINCOME INVESTORS ACCORDING TO JAMES J COONER SENIOR VICE PRESIDENT AT BANK OF NEW YORK MR COONER AND MANY OTHER STRATEGISTS RECOMMEND HIGHQUALITY BONDS THOSE WITH STRONG CREDIT RATINGS BECAUSE THERE IS ONLY A SMALL GAP IN THE YIELDS BETWEEN HIGHRATED AND LOWRATED ISSUES FOR EXAMPLE SOME DOUBLEARATED MUNICIPAL BONDS DUE IN 10 YEARS YIELD 515 SAID AUSTIN TOBIN PRESIDENT OF DELPHIS HANOVER CORP SOUTHBURY CONN A COMPARABLE SINGLEARATED ISSUE WOULD YIELD ABOUT 545 A DIFFERENCE OF ONLY 030 PERCENTAGE POINT DURING THE PAST YEAR THAT GAP HAS RANGED BETWEEN 020 PERCENTAGE POINT AND 035 PERCENTAGE POINT MR TOBIN SAID MR COONER ALSO RECOMMENDS INTERMEDIATETERM MUNICIPAL BONDS ESPECIALLY THOSE DUE IN SEVEN TO 10 YEARS THESE ISSUES OFFER MUCH HIGHER YIELDS THAN SHORTTERM ISSUES THEY ALSO OFFER CLOSE TO THE SAME YIELDS AS LONGTERM BONDS DO AND THEIR PRICES IN THE RESALE MARKETS ARE MUCH LESS VOLATILE INVESTORS GET VERY LITTLE ADDITIONAL RETURN ON THEIR INVESTMENTS BY EXTENDING INTO LONGTERM BONDS MR COONER SAID DESPITE ALL THE BORROWING THAT WILL HIT THE MARKETS THIS WEEK SOME INVESTMENT MANAGERS REMAIN BULLISH ON BONDS MAINLY BECAUSE THEY EXPECT LOW INFLATION TOMORROW THE GOVERNMENT WILL RELEASE ITS APRIL PRODUCER PRICE INDEX THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT SHOWS AN INCREASE OF ONLY 02 COMPARED WITH 04 THE PREVIOUS MONTH THE CLEAREST THEME OF ALL LAST WEEK WAS THE CONTINUED GLOBAL DOWNWARD PRESSURE ON INFLATION ACCORDING TO EDWARD S HYMAN OF ISI INC A NEW YORK INVESTMENT RESEARCH AND MANAGEMENT FIRM THE US ECONOMY IS EXPANDING BUT NOT EXPANDING VERY FAST TRADING ACTIVITY SLOWED TO A TRICKLE YESTERDAY AHEAD OF THE GOVERNMENT'S QUARTERLY FINANCING OPERATION WHICH STARTS TODAY WHILE LONGTERM BOND PRICES ADVANCED SHORTERTERM ISSUES HARDLY BUDGED FROM WHERE THEY WERE LATE FRIDAY FOR EXAMPLE THE 5125 FIVEYEAR NOTE TRADED LATE YESTERDAY AT 100 14/32 UNCHANGED FROM LATE FRIDAY TO YIELD 502 IN WHENISSUED TRADING THE TREASURY'S THREEYEAR NOTES TO BE AUCTIONED TODAY WERE QUOTED AT A YIELD OF 426 LATE YESTERDAY ALSO ON A WHENISSUED BASIS THE 10YEAR TREASURY NOTES TO BE AUCTIONED TOMORROW WERE QUOTED AT A YIELD OF 589 YESTERDAY HERE ARE DETAILS OF THE TREASURY'S BILL 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 PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED MAY 13 THE 13WEEK BILLS MATURE AUG 12 1993 AND THE 26WEEK BILLS MATURE NOV 12 1993 TRADING VOLUME ALSO WAS EXTREMELY LIGHT IN MUCH OF THE CORPORATE BOND SECTOR LEAVING PRICES OF INVESTMENTGRADE ISSUES FLAT TO SLIGHTLY HIGHER THERE WAS MORE ACTIVITY IN THE HIGHYIELD HIGHRISK JUNK BOND MARKET NEW JUNK BONDS OF BUILDINGPRODUCTS CONCERN USG CORP WHICH EMERGED FROM BANKRUPTCY LAST WEEK ROSE USG'S 1025 SENIOR SECURED NOTES DUE 2002 GAINED 1/2 POINT TO 100 TO YIELD 1025 THE ISSUE TRADED AS HIGH AS 100 1/8 DURING THE SESSION THE NOTES BEGAN TRADING MAY 6 THE SAME DAY THAT USG'S 2 1/2YEAR FINANCIAL RESTRUCTURING OFFICIALLY CAME TO A CLOSE A FEDERAL BANKRUPTCY JUDGE APPROVED USG'S PLAN TO RESTRUCTURE ITS 27 BILLION OF DEBT LAST MONTH PRICES OF MARRIOTT CORP BONDS ENDED LITTLE CHANGED AFTER THE HOTEL RESTAURANT AND FOODSERVICES COMPANY FORMALLY LAUNCHED AN OFFER TO EXCHANGE MOST OF ITS OUTSTANDING DEBT FOR A PACKAGE OF NEW BONDS COMMON STOCK AND CASH FOR EXAMPLE MARRIOTT'S 95 SENIOR NOTES DUE 2002 ENDED AT 99 UNCHANGED FROM FRIDAY MOST MUNICIPAL SECURITIES PRICES ENDED LITTLE CHANGED AMID CAUTION AHEAD OF THIS WEEK'S SUPPLY BOTH OF NEW MUNICIPAL ISSUES AND TREASURY BONDS AND NOTES IN SECONDARY TRADING THE KANSAS DEPARTMENT OF TRANSPORTATION'S 5375 SECURITIES OF 2013 ENDED 1/8 POINT LOWER AT 97 3/8 TO YIELD 560 DENVER'S 675 AIRPORT REVENUE BONDS DUE 2022 ENDED 1/4 HIGHER AT 99 3/4 TO YIELD 677 AMONG THE NEW ISSUES OFFERED YESTERDAY 224 MILLION OF CHICAGO GENERAL OBLIGATION BONDS WERE PRICED TO YIELD 585 IN 2023 ALSO THE MICHIGAN HOSPITAL FINANCE AUTHORITY OFFERED 161 MILLION OF REVENUE BONDS TO YIELD 575 IN 2018 NO MAJOR MUNI ISSUES ARE SCHEDULED FOR SALE VIA COMPETITIVE BIDDING UNTIL TOMORROW ON THE NEGOTIATED SIDE OF THE CALENDAR THE BIGGEST ISSUES AWAITED INCLUDE A 600 MILLION MASSACHUSETTS GENERAL OBLIGATION REFUNDING BOND DEAL THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AND A 275 MILLION LOWER COLORADO RIVER AUTHORITY TEXAS JUNIOR LIEN REFUNDING REVENUE BOND DEAL VIA A MORGAN STANLEY & CO GROUP AS IN RECENT WEEKS REFUNDING SECURITIES WILL CONTINUE TO MAKE UP A SIZABLE CHUNK OF THE NEW MUNICIPAL DEBT ISSUANCE AS ISSUERS TRY TO CAPITALIZE ON LOW INTEREST RATES BY REFINANCING HIGHERYIELDING OUTSTANDING DEBT PRICES OF MORTGAGEBACKED SECURITIES FINISHED SLIGHTLY HIGHER WITH INVESTORS AND DEALERS MOSTLY SIDELINED ISSUANCE OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS ALSO WAS SLACK WITH ONLY ONE DEAL ANNOUNCED A 3601 MILLION ISSUE BACKED BY FEDERAL HOME LOAN MORTGAGE CORP 65 SEVENYEAR BALLOON MORTGAGES THIN REMIC ISSUANCE COMING AFTER A NEARLY 6 BILLION WEEK IS PARTLY THE RESULT OF A FLATTER YIELD CURVE AND PARTLY BECAUSE INVESTORS ARE LOSING INTEREST IN CERTAIN CLASSES OF THESE REMADE MORTGAGE SECURITIES A FLAT YIELD CURVE TAKES DEALER PROFIT OUT OF ISSUING REMICS WHICH ARE TIED MORE TO SHORTTERM TREASURYS HARDEST HIT ARE PLANNED AMORTIZATION CLASS BONDS WITH FIVEYEAR AND SEVENYEAR MATURITIES THESE BONDS HAVE SUFFERED THE MOST FROM PERSISTENT REFINANCING OF THE UNDERLYING MORTGAGE LOANS PAC BONDS ARE DESIGNED TO PREPAY WITHIN A SPECIFIED RANGE OF PREPAYMENT SPEEDS BUT SPEEDS HAVE EXCEEDED DEALER EXPECTATIONS CAUSING MANY OF THESE BONDS TO PREPAY EARLY IN SECONDARY TRADING PRICES OF MORTGAGEBACKED SECURITIES FINISHED ABOUT 1/4 HIGHER GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR MAY DELIVERY ENDED 6/32 HIGHER AT 101 2/32 FREDDIE MAC GOLD 7 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES GAINED 7/32 TO 101 14/32 AND 101 9/32 RESPECTIVELY 9305110048 930511 TOUGH GAMBLE A SLOTMACHINE MAKER TRYING TO SELL IN JAPAN HITS COUNTLESS BARRIERS AMERICA'S IGT FINDS IT HARD TO GET THE SPECIFICATIONS AND HARD TO MEET THEM LOCAL EXPERT RUNS THE MAZE BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE JAPANESE ADVENTURES OF AMERICA'S LARGEST SLOTMACHINE MANUFACTURER EXPLAIN A LOT ABOUT WHY WASHINGTON IS SO FIRED UP ABOUT US COMPANIES' ACCESS TO JAPAN'S MARKETS IN 1989 INTERNATIONAL GAME TECHNOLOGY SET OUT TO CONQUER JAPAN THE LOGIC WAS CLEAR FOR YEARS THE RENO NEV COMPANY WATCHED JAPANESE MAKERS OF ONEARMED BANDITS STORM THROUGH US CASINOS BY THE LATE 1980S WE NOTICED OUR THREE LARGEST COMPETITORS IN NEVADA WERE JAPANESE SAYS RAYMOND D PIKE SENIOR VICE PRESIDENT IGT MEANWHILE WHICH DOMINATES VIRTUALLY EVERY OTHER MAJOR GAMBLING MARKET IN THE WORLD SOLD NOTHING IN JAPAN IT WAS MISSING A HUGE MARKET FOR THE JAPANESE ARE AVID GAMBLERS JAPAN HAS ROUGHLY 800000 SLOT MACHINES TWOTHIRDS OF THE WORLD'S TOTAL WE FELT IT WAS CRITICAL TO OUR ABILITY TO MAINTAIN OUR COMPETITIVENESS THAT WE BE INVOLVED IN THE LARGEST SINGLE MARKETPLACE IN THE WORLD MR PIKE SAYS BUT THE COMPANY RAN SMACK INTO JAPAN INC FOR FOUR YEARS THE COMPANY LOBBIED TO GAIN ACCESS TO THE GAMBLING MARKET HERE NO DICE IGT BECAME MIRED IN THE SAME SWAMP THAT HAS BOGGED DOWN COUNTLESS US COMPANIES RANGING FROM CONSTRUCTION FIRMS TO COMPUTER MAKERS THE SWAMP THAT PRESIDENT CLINTON WOULD LIKE TO DRAIN INTO A LEVEL PLAYING FIELD IGT WASN'T BLOCKED BY OBVIOUS TARIFFS BUT BY COMPLEX AND BIZARRE RULES SPOKEN AND UNSPOKEN THAT SIMPLY WEAR INTERLOPERS OUT JAPANESE MANUFACTURERS HAVE BUILT UP SOME MUTUAL UNDERSTANDINGS EXPLAINS KAZUO OKADA PRESIDENT OF JAPAN'S BIGGEST SLOTMACHINE MAKER THERE IS A KIND OF WA HARMONY IN THE INDUSTRY THE ULTIMATE SOLUTION MR PIKE SAYS WAS UNDERSTANDING JAPAN'S DIFFERENT MINDSET AS WELL AS PLENTY OF PATIENCE AND PERSISTENCE TO SAY NOTHING OF THE TIMELY INTERVENTION OF A HIRED GUN WHEN IGT PLACED ITS LONGSHOT BET ON JAPAN THE FIRST THING MR PIKE TRIED TO DO WAS TO GET A COPY OF JAPAN'S RULES BUT HE QUICKLY DISCOVERED THE POWER OF ITS BUREAUCRATS IN THE US SPECIFICATIONS FOR MACHINES USED IN GAMBLING ARE GENERALLY CLEARLY WRITTEN AND ACCESSIBLE TO ANYONE IN JAPAN THE REGULATORS IN THIS CASE THE NATIONAL POLICY AGENCY MAKE MANY DECISIONS BASED ON INFORMAL UNWRITTEN UNDERSTANDINGS THE UPSHOT NO ONE FULLY KNOWS THE RULES JUST THE WAY THE BUREAUCRATS LIKE IT LESSON NO 2 WHEN MR PIKE TRIED TO GET AN EXPLANATION HE GOT LESSON NO 2 ABOUT THE TIGHT TIES BETWEEN REGULATOR AND REGULATED THE POLICE HE DISCOVERED DEVISE THE SPECIFICATIONS IN CONSULTATION WITH THE 18 MEMBERS OF NICHIDENKYO THE INDUSTRY TRADE ASSOCIATION WHICH INCIDENTALLY EMPLOYS SOME RETIRED POLICE OFFICERS ONLY MEMBERS ARE TOLD OF THE INFORMAL SPECIFICATIONS WHEN IGT TRIED TO JOIN NICHIDENKYO IT LEARNED ITS THIRD LESSON ABOUT INDUSTRY CLUBBINESS NICHIDENKYO'S CATCH22 RULES REQUIRE THAT ANY NEW MEMBER BE RECOMMENDED BY THREE CURRENT MEMBERS AND HAVE THREE YEARS OF EXPERIENCE MANUFACTURING IN JAPAN IGT EXECUTIVES COMPLAINED TO THE POLICE THE POLICE TOLD THEM TO GO TO NICHIDENKYO WHEN NICHIDENKYO STALLED THEM THEY WENT TO THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MITI SAID GO BACK TO THE POLICE IGT BEGAN TO SEE THE WRITING ON THE WALL THERE WAS SOME CONCERN MR PIKE SAYS THAT WE WERE NOT BEING WELCOMED AS WARMLY AS OUR JAPANESE COMPETITORS WERE INTO THE NEVADA MARKETPLACE NICHIDENKYO'S SENIOR MANAGING DIRECTOR KIYOSHI UEDA SAYS IGT MISUNDERSTOOD THE SITUATION THE RULES WERE NEVER DESIGNED TO THWART FOREIGNERS HE CONTENDS INDEED WE NEVER EVEN HAD ANY IDEA THAT FOREIGN COMPANIES WOULD COME TO JAPAN THE GROUP SAYS ITS MAIN CONCERN IS TO SCREEN OUT SHADY JAPANESE COMPANIES ESPECIALLY THOSE TIED TO THE MOB HOWEVER NICHIDENKYO HAS IN EFFECT SCREENED OUT ALL JAPANESE COMPANIES THE MARKET HASN'T SEEN A NEW DOMESTIC ENTRANT FOR YEARS AND THE SLOTS MAKERS CLEARLY BENEFIT FROM THIS TIGHTKNIT FRATERNITY I'VE BEEN IN THIS BUSINESS 23 YEARS SAYS YOJI SATO WHO RUNS A CHAIN OF 35 PACHINKO PARLORS THE GAUDY UBIQUITOUS GAMING HALLS THAT OFFER PACHINKO PINBALL MACHINES AND ALSO PACHISURO THE JAPANESE VERSION OF SLOT MACHINES EVERY TIME THE PRICE OF ONE MACHINE WENT UP THE PRICE OF ALL THE MACHINES WENT UP BY THE SAME AMOUNT MR SATO SAYS WEARILY BY SEPTEMBER 1990 MR PIKE WAS COMPLAINING TO NICHIDENKYO THAT JAPAN'S MARKET WAS CLOSED HE TOOK HIS FIGHT TO HIS CONGRESSMEN AND THE BUSH ADMINISTRATION THE JAPANESE PRESS WAS WRITING ABOUT AN IMPENDING PACHISURO TRADE WAR MR OKADA PRESIDENT OF JAPAN'S UNIVERSAL SALES CO SAYS HE TOO HAD TROUBLE CRACKING A FOREIGN MARKET THE ONE IN THE US HE SAYS IT TOOK HIS COMPANY THREE YEARS TO BREAK INTO NEVADA REGULATORS HE SAYS TOOK THEIR TIME EXPLAINING THE INDUSTRY'S STANDARDS AND WERE PICKY ABOUT HIS PERSONAL HISTORY HE SAYS HE HAD TO SUPPLY DOCUMENTS GOING BACK SEVERAL GENERATIONS FORCING HIM TO DIG INTO THE ARCHIVES OF HIS ANCESTRAL HOMETOWN IN RURAL JAPAN HIS COMPANY ALSO HAD TO RECONSTRUCT LONGVANISHED FINANCIAL DATA NOW HOWEVER UNIVERSAL SALES MACHINES COMMAND 20 OF THE LAS VEGAS MARKET ONCE YOU UNDERSTAND THE DIFFERENCES OF A FOREIGN MARKET THERE'S A WAY TO SOLVE THE PROBLEMS MR OKADA SAYS WHAT DOES MR PIKE BELIEVE IN ALL CANDOR HE SAYS I SEE THE US MARKET AS FAR MORE RECEPTIVE TO NEWCOMERS FINALLY IN MID1991 IGT'S LUCK TURNED WHEN IT MET JUN OKAWA A MAN WELLVERSED IN RUNNING THE MAZE OF JAPAN'S BUREAUCRACY MR OKAWA ONCE WORKED AT MITI AND MADE A CAREER OF HELPING JAPANESE COMPANIES WARD OFF FOREIGN COMPETITORS MR OKAWA NOW 42 SAYS HE BEGAN TO LOSE HEART WHEN ASSIGNED TO DEFEND JAPANESE COMPANIES IN SOME HIGHLY PUBLICIZED TRADE DISPUTES ONE THAT SENT HIM OVER THE EDGE HE SAYS WAS JAPAN'S ATTEMPT TO PREVENT AMERICAN COMPANIES FROM SELLING METAL BASEBALL BATS IN JAPAN JAPAN STRUCK OUT AND MR OKAWA EVENTUALLY DECIDED TO SWITCH TEAMS I THINK THE AMERICANS WERE RIGHT HE SAYS WITH AN IMPISH GRIN BESIDES HE ADDS THE GOVERNMENT PAID A POOR SALARY I COULD NOT SUSTAIN MY LIFESTYLE SO MR OKAWA WENT TO THE UNIVERSITY OF CHICAGO BUSINESS SCHOOL DID A STINT ON WALL STREET AND RETURNED TO TOKYO IN 1990 A MITI FRIEND SUGGESTED THAT HE ADVISE AN AMERICAN GLASSMAKER TRYING TO BREAK INTO JAPAN'S MARKET AT LAST MR OKAWA SAYS I FOUND MY MISSION HELPING FOREIGN COMPANIES STEER PAST THE SORT OF LAND MINES HE HIMSELF USED TO PLANT MR OKAWA SENT OUT 200 BROCHURES PROMOTING HIS SERVICES BUT GOT ONLY ONE RESPONSE SO LIKE AN AMBULANCECHASING LAWYER SCANNING ACCIDENT REPORTS HE PASSED THE TIME IN HIS CLUTTERED ONEROOM OFFICE FLIPPING THROUGH NEWSPAPERS LOOKING FOR TRADE SPATS HE READ OF IGT'S COMPLAINT AND MET WITH MR PIKE GET THE SPECIFICATIONS MR PIKE PLEADED MR OKAWA VISITED THE POLICE AND REMINDED THEM JUST HOW UNPLEASANT A TRADE WAR CAN BE HE PLAYED ON THEIR FEAR OF EMBARRASSMENT EXPLAINING THAT SLOT MACHINES ARE A VERY COLORFUL CASE FROM THE MEDIA'S POSITION AND THAT IF YOU MISHANDLE THIS ISSUE YOU WILL BE IN THE SPOTLIGHT SOON THEY WERE WRITING DOWN THE UNWRITTEN RULES AND NICHIDENKYO WAS SETTING UP A SPECIAL ASSOCIATE MEMBERSHIP FOR FOREIGN COMPANIES SUCH AS IGT EVEN SO IGT WAS FORCED TO PAY OBEISANCE TO NICHIDENKYO MEMBERS AND SMOOTH RUFFLED FEATHERS I HAD MR PIKE APOLOGIZE TO US NICHIDENKYO'S MR UEDA SAYS I MADE IGT TELL US IT WAS THEIR MISUNDERSTANDING THAT LED TO COMPLAINTS ABOUT TRADE BARRIERS NOW THAT IGT WAS A MEMBER OF THE BRETHREN IT HAD ACCESS TO THE RULES BUT COMPLYING WITH THEM WAS ANOTHER MATTER IN LAS VEGAS AN IGT OFFICIAL SAYS REGULATIONS FOR SLOT MACHINES RUN ABOUT 30 PAGES IN JAPAN THREE THICK VOLUMES REGULATORS SCRUTINIZE EVERY PART OF THE MACHINE EVEN INDIVIDUAL SCREWS WHEN IGT SUBMITTED ONE FILING REGULATORS BRUSHED IT ASIDE WRONG SIZE PAPER THEY SAID REDO IT WHEN IGT WANTED TO CHANGE THE SIZE OF THE HOLE FOR THE CABLE IN THE BACK OF THE MACHINE REGULATORS SAID NOT SO FAST SUBMIT NEW FORMS FIRST DESCRIPTIONS OF EVERY SUPPLIER HAD TO BE SENT TO THE REGULATORS AND THE FACTORY HAD TO MAKE EACH MACHINE ABSOLUTELY IDENTICAL RIGHT DOWN TO PLACEMENT OF LABELS ON THE OUTSIDE IGT PUT EXTRA WORKERS ON ITS FACTORY FLOOR TO SPOTCHECK JAPANBOUND MACHINES AND WORDING ON ALL THE FORMS HAD TO CONFORM TO THE NORM OR ELSE YOU HAVE TO SAY THIS IS A CABINET MADE OF STEEL' YOU CAN'T SAY THIS IS A STEELMADE CABINET' MR OKAWA SAYS FOR SOME PEOPLE THIS MAY SEEM RIDICULOUS BUT THE JAPANESE ARE MORE METICULOUS MORE DETAILORIENTED ALL IN ALL THE REGULATORS WHO MR OKAWA SAYS WERE TRYING TO BE HELPFUL AND BY THEN WERE TREATING IGT JUST LIKE ANY JAPANESE COMPANY ASKED IGT TO REWORK ITS FILINGS NOT ONCE OR TWICE BUT MORE THAN 20 TIMES OFTEN MR OKAWA SAYS IT HAD NOTHING TO DO WITH THE FUNCTION OF THE MACHINE THEN CAME THE TESTING IN MOST COUNTRIES REGULATORS USE A MATHEMATICAL FORMULA TO TEST A MACHINE'S RANDOMNESS IN JAPAN OFFICIALS ARE MORE PRECISE PULLING THE HANDLE FOR THOUSANDS OF TEST RUNS JAPANESE RULES REQUIRE THAT THE MACHINES AVERAGE A CERTAIN PAYOUT OVER TIME IGT'S HIT THAT AVERAGE AFTER 30000 RUNS A COMPANY OFFICIAL SAYS THE REGULATORS WANTED THE TARGET MET AFTER 15000 BACK TO THE DRAWING BOARD WENT IGT'S SOFTWARE DESIGNERS AND WHAT ABOUT RANDOMNESS IN MOST NATIONS SLOTMACHINES ARE GENERALLY DESIGNED TO ENSURE THAT THE RESULTS ARE INDEED RANDOM LUCK BEGETS A JACKPOT OR A BUST NOT SO IN PATERNALISTIC JAPAN WHICH LOATHES THE IDEA OF WINNERS AND LOSERS PLAYING SLOT MACHINES IS A GAME OF THE PEOPLE SAYS KOJI OTABE A POLICE AGENCY REGULATOR SO THE MACHINES LIMIT WINNINGS AND LOSINGS OFFICIALLY THE WINNINGS ARE PETTY PLAYERS WIN TOKENS REDEEMABLE FOR CIGARETTES STUFFED ANIMALS AND THE LIKE BUT AROUND THE CORNER FROM MOST PACHINKO HALLS ARE UNMARKED WINDOWS WHERE PLAYERS CAN TURN IN THEIR PRIZES FOR CASH WE SHOULDN'T HAVE A WINDFALL FOR A LIMITED NUMBER OF PEOPLE MR OTABE SAYS IT WILL BE A PROBLEM IF PEOPLE START GAMBLING WITHOUT WORKING IT TOOK IGT MORE THAN A YEAR TO MAKE ALL THE MODIFICATIONS AND FILL OUT ALL THE FORMS FINALLY IN APRIL IGT GOT APPROVAL TO EXPORT ITS FIRST MODEL TO JAPAN VEGAS GIRL A THREEREEL MACHINE COVERED WITH DRAWINGS OF SCANTILY CLAD AMERICAN WOMEN THE COMPANY COULD BEGIN MARKETING THE MACHINES AS SOON AS THIS MONTH YET AS MANY US COMPANIES HAVE LEARNED SIMPLY GETTING PERMISSION TO SELL IN JAPAN DOESN'T GUARANTEE THE ABILITY TO ACTUALLY COMPETE THERE ARE 100 WAYS FOR RIVALS AND REGULATORS TO PUT STONES IN IGT'S PATH SAYS A PERSON FAMILIAR WITH THE CASE THE POLICE WANT IGT TO DO JUST AS THE JAPANESE MAKERS DO SAYS YOJI MABE A JOURNALIST WHO COVERS THE INDUSTRY JAPAN'S UNIVERSAL FOR ONE ISN'T WORRIED WHEN WE FIRST STARTED DOING BUSINESS IN THE US WE REACHED SOME WRONG CONCLUSIONS AND DID SOME FUNNY THINGS MR OKADA SAYS TO US IGT NOW LOOKS FUNNY THEY HAVE ONLY A LIMITED AMOUNT OF INFORMATION ABOUT DOING BUSINESS IN JAPAN THEY'RE NOT CLEVER MR OKADA CONCEDES THAT NOW THAT FOREIGNERS HAVE ENTERED JAPAN'S SLOTMACHINE MARKET THE EXISTING KIND OF WA WILL COME APART INDEED SINCE IGT CRACKED THE OLD HARMONY A RAFT OF OTHER SLOTMACHINE MAKERS HAVE LINED UP TO SELL IN JAPAN BUT THE LANDSCAPE IS LITTERED WITH THE REMAINS OF AMERICAN COMPANIES THAT THOUGHT THEY HAD TRANSFORMED A JAPANESE INDUSTRY IS JAPAN'S SLOTS MARKET NOW TRULY OPEN MR OKADA IS CIRCUMSPECT THE BUSINESS MAY CHANGE HE SAYS BUT ANOTHER FORM OF WA WILL BE BORN 9305110046 930511 BUSINESS BRIEF CAMECO CORP CANADA UNDERWRITERS TO SELL FIVE MILLION OF FIRM'S SHARES CAMECO CORP SAID THE CANADIAN GOVERNMENT AGREED WITH UNDERWRITERS TO SELL TO THE PUBLIC FIVE MILLION SHARES OF CAMECO AT 2050 CANADIAN DOLLARS US1615 EACH THE CANADIAN GOVERNMENT CURRENTLY OWNS 10 MILLION OF THE 52 MILLION CAMECO SHARES OUTSTANDING THE OFFERING SUBJECT TO REGULATORY APPROVAL WILL BE UNDERWRITTEN BY BURNS FRY LTD AND RBC DOMINION SECURITIES INC IT IS EXPECTED TO CLOSE JUNE 7 THE URANIUM PRODUCER IN SASKATOON SASKATCHEWAN SAID CAMECO'S SHARES CLOSED YESTERDAY AT C2050 DOWN 75 CANADIAN CENTS IN TORONTO STOCK EXCHANGE TRADING 9305110045 930511 WHAT'S NEWS WORLDWIDE THE WHITE HOUSE WEIGHED SENDING AMERICAN PEACEKEEPERS TO MACEDONIA THE CLINTON ADMINISTRATION IS CONSIDERING SENDING THE FORCE WHICH WOULD BE THE FIRST COMMITMENT OF US GROUND TROOPS TO THE BALKANS THE PRESIDENT MEANWHILE SIGNALED THE US IS LOSING HOPE THAT IT CAN WIN ALLIED SUPPORT FOR THE USE OF LIMITED MILITARY FORCE IN BOSNIA ASKED LAST NIGHT IF HE WAS PLANNING AIR STRIKES CLINTON SAID I THINK WE CAN STOP A LOT OF THE TERRIBLE THINGS WITHOUT DOING THAT US INTELLIGENCE ANALYSTS SAID SERBIA IS VIOLATING ITS PLEDGE TO CUT ALL BUT HUMANITARIAN SUPPLIES TO BOSNIA'S SERBS AERIAL PHOTOS THEY SAID SHOW FUELLADEN TANKERS CROSSING INTO BOSNIA UN OBSERVERS FOUND A HUMANITARIAN DISASTER IN THE MUSLIM TOWN OF ZEPA THE UN DEMANDED TO KNOW THE WHEREABOUTS OF MUSLIMS EXPELLED FROM MOSTAR CLINTON TRAVELED TO CLEVELAND ON A CAMPAIGNSTYLE TRIP AND DERIDED AS PREACHERS OF PESSIMISM THOSE WHO SAY HE IS DOING TOO MUCH THE PRESIDENT WHO HAD BEEN EXPECTED TO FOCUS ON ECONOMIC ISSUES DURING HIS VISIT DISCUSSED A WIDE RANGE OF TOPICS INCLUDING WELFARE OVERHAUL AND CAMPAIGNFINANCE REFORM SENATORS QUESTIONED WHETHER THEY COULD NULLIFY SEN PACKWOOD'S ELECTION BECAUSE OF CHARGES THAT THE OREGON REPUBLICAN WON BY LYING TO THE MEDIA ABOUT HIS SEXUAL BEHAVIOR A SENATE PANEL HEARD ARGUMENTS ON A PETITION TO OUST HIM BECAUSE HE ALLEGEDLY PREVENTED VOTERS FROM LEARNING ABOUT HIS MISCONDUCT AN OVERWHELMING MAJORITY OF SAILORS TOLD SENATORS VISITING NORFOLK VA THAT THEY OPPOSE CLINTON'S PLAN TO REMOVE THE PROHIBITION ON HOMOSEXUALS IN THE MILITARY AND MANY SAID THEY WOULD QUIT THE NAVY IF THE BAN IS LIFTED THE SAILORS TESTIFIED AT A HEARING CONDUCTED AT THE NORFOLK NAVAL BASE BY THE ARMED SERVICES COMMITTEE PRIME MINISTER RABIN FENDED OFF THREE NOCONFIDENCE MOTIONS IN ISRAEL'S PARLIAMENT AS HE TRIED TO RESHUFFLE HIS CABINET AND HOLD TOGETHER A SQUABBLING COALITION GOVERNMENT THE COALITION CRISIS THE WORST IN RABIN'S 10 MONTHS IN OFFICE PITS POLITICIANS OF THE ULTRAORTHODOX SHAS PARTY AGAINST THE LEFTWING MERETZ BLOC PALESTINIANS CUT THEIR DELEGATION TO THE MIDEAST PEACE TALKS TO THREE FROM 14 MEMBERS CONTENDING THE US AND ISRAEL HAD BROKEN PROMISES MADE PRIOR TO THE RESUMPTION OF THE WASHINGTON TALKS LAST MONTH A UN FORCE COULD BE SENT TO HAITI UNDER A RESOLUTION LIKELY TO BE SPONSORED BY THE US FRANCE AND BRITAIN DIPLOMATS SAID BUT A WHITE HOUSE OFFICIAL SAID A FINAL DECISION ON AUTHORIZING THE 500MEMBER POLICE FORCE WON'T BE MADE UNTIL HAITI'S MILITARYBACKED GOVERNMENT ALLOWS OUSTED PRESIDENT ARISTIDE TO RETURN KUWAIT RULED OUT EXTRADITING TO THE US 17 SUSPECTS IN AN ALLEGED PLOT TO KILL FORMER PRESIDENT BUSH DURING HIS VISIT TO THE EMIRATE LAST MONTH THE KUWAITI DEFENSE MINISTER TOLD A NEWSPAPER THAT THE SUSPECTS ONE OF WHOM IS STILL AT LARGE WILL BE TRIED IN KUWAIT BECAUSE THAT WAS WHERE THEY WERE GOING TO CARRY OUT THEIR PLOT RUSSIAN AND CHINESE EXPERTS HAVE BEGUN ARRIVING IN TEHRAN TO WORK ON IRAN'S CIVILIAN NUCLEAR PROGRAM WHICH SOME US OFFICIALS SAY IS BEING USED TO HIDE AN EFFORT TO DEVELOP NUCLEAR ARMS THE EXPERTS SUPPOSEDLY ARE MAKING PREPARATIONS FOR SIX REACTORS THAT IRAN IS BUYING JURY SELECTION BEGAN IN THE ORLANDO FLA RETRIAL OF A MIAMI POLICEMAN WHOSE SHOOTING OF A BLACK MOTORCYCLIST SPARKED RIOTS IN 1989 TESTIMONY WAS EXPECTED NEXT WEEK IN THE TRIAL OF COLOMBIANBORN WILLIAM LOZANO THE TRIAL WAS MOVED FROM MIAMI TO ORLANDO TO TALLAHASSEE AND THEN BACK TO ORLANDO WHICH IS PREDOMINANTLY WHITE THE SECURITY COUNCIL WAS CONSIDERING A UN RESOLUTION CALLING ON NORTH KOREA TO OPEN MILITARY SITES TO NUCLEAR INSPECTORS AND RECONSIDER ITS DECISION TO WITHDRAW FROM A NUCLEAR NONPROLIFERATION PACT THE RESOLUTION THE COUNCIL'S FIRST ON THE ISSUE IS EXPECTED TO BE ADOPTED THIS WEEK ACCORDING TO JAPAN'S UN ENVOY WHALING NATIONS MOVED TO WEAKEN AN INTERNATIONAL BAN ON COMMERCIAL WHALE HUNTING AT A MEETING OF THE INTERNATIONAL WHALING COMMISSION NORWAY URGED THAT SMALLSCALE COASTAL WHALING BE PUT IN ITS OWN CATEGORY EXEMPT FROM THE BAN JAPAN SOUGHT EMERGENCY PERMISSION TO HUNT A LIMITED NUMBER OF MINKE WHALES 9305110044 930511 ECONOMY CLINTON CHANGES COURSE ON PART OF ENERGY TAX AGREEMENT WOULD EASE RESTRICTIONS ON UTILITIES TO PASS ALONG THE LEVY BY JACKIE CALMES AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON REVERSING COURSE UNDER PRESSURE FROM SOME CONGRESSIONAL DEMOCRATS AGREED TO MAKE IT EASIER FOR UTILITIES TO PASS ALONG HIS PROPOSED ENERGY TAX TO CONSUMERS THE TREASURY HAD CAREFULLY DESIGNED THE TAX SO THAT UTILITIES WOULD PAY IT AND AFTER GETTING THE NOD FROM STATE REGULATORS PASS IT ALONG TO CUSTOMERS ALMOST INVISIBLY BUT IN AN UNUSUAL TELEPHONE CONVERSATION FRIDAY WITH A JUNIOR DEMOCRAT ON THE HOUSE WAYS AND MEANS COMMITTEE REP BILL BREWSTER OF OKLAHOMA MR CLINTON ACQUIESCED TO THE LAWMAKER'S PROPOSAL TO ALLOW UTILITIES TO BYPASS THE REGULATORS AND MAKE THE ENERGY TAX A SEPARATE LINE ON ELECTRIC AND NATURAL GAS BILLS MR CLINTON OTHERWISE FACED DEFEAT ON THE ISSUE IN THE COMMITTEE WHICH AS EARLY AS TODAY WILL BEGIN VOTING ON CHANGES TO THE PRESIDENT'S TAX PACKAGE SUPPORTERS SAY REP BREWSTER A NEW MEMBER OF THE TAX PANEL HAD ENOUGH VOTES FOR THE CHANGE WHICH IS BEING SOUGHT BY UTILITIES BUT IS OPPOSED BY CONSUMER GROUPS AND ENVIRONMENTALISTS NEGOTIATIONS ON THE REVISION CONTINUED LATE YESTERDAY AND REFLECTED THE TYPE OF HORSE TRADING THAT IS PREOCCUPYING THE ADMINISTRATION EVEN THE PRESIDENT AND VICE PRESIDENT AL GORE AS IT WORKS TO SALVAGE THE MAJOR PARTS OF THE TAX PLAN THE ENERGY TAX IF IT GETS THROUGH CONGRESS WOULD FIRST BE IMPOSED ON UTILITY BILLS AND OTHER ENERGY CONSUMPTION IN THE SUMMER OF 1994 AND WOULD BE INCREASED IN THE SUMMER OF 1995 AND AGAIN IN THE SUMMER OF 1996 JUST BEFORE THE NEXT PRESIDENTIAL ELECTION THE CLINTON FOLKS DIDN'T WANT SOMETHING THAT WOULD SHOW UP ON CUSTOMER BILLS AND REMIND PEOPLE THAT THIS ISN'T THE BTU TAX' IT'S THEBILLISTAXINGYOU TAX' SAYS MICHAEL FOLEY DIRECTOR OF FINANCIAL ANALYSIS FOR THE NATIONAL ASSOCIATION OF REGULATORY UTILITY COMMISSIONERS BOTH THE ORIGINAL CLINTON PROPOSAL AND MR BREWSTER'S MODIFICATION WOULD FORCE CONSUMERS TO PICK UP THE TAB MR CLINTON WOULD HAVE IN EFFECT FORCED REGULATORS TO ALLOW UTILITIES TO PASS ALONG THE TAX BY DENYING CUSTOMERS THE BENEFIT OF CERTAIN FEDERAL TAX BREAKS IF REGULATORS STOOD IN THE WAY MR BREWSTER WOULD BYPASS REGULATORS ALTOGETHER SUPPORTERS OF MR CLINTON'S ORIGINAL VERSION HAD HOPED THAT BY FORCING ALL UTILITIES TO GO TO THEIR STATE REGULATORS SOME WOULD HAVE HAD TO CUT RATES AS REGULATORS TOOK INTO ACCOUNT OTHER FACTORS SUCH AS LOWER INTEREST COSTS EDWIN ROTHSCHILD OF THE CONSUMER GROUP CITIZEN ACTION WHICH SUPPORTS THE PRESIDENT'S ENERGY TAX SAID THE UTILITY CHARGE SHOULD BE CALLED THE BREWSTER TAX BECAUSE THE LAWMAKER HAS MADE IT CLEAR THAT CONSUMERS ARE GOING TO SEE THIS IMMEDIATELY IN THEIR BILLS REP BREWSTER IN AN INTERVIEW SAID HE WAS JUST TRYING TO SIMPLIFY THE COLLECTION POINTS FOR THE TAX AND TO KEEP UTILITIES OUT OF LENGTHY RATESETTING PROCEEDINGS HE ALSO SAID UTILITIES WOULD IDENTIFY THE TAX ON CONSUMER'S BILLS WHETHER HIS PROPOSAL IS ACCEPTED OR NOT THE INDUSTRY HAILED THE NEWS THAT THE CHANGE WAS BEING NEGOTIATED EVEN SO THE CONCESSION WASN'T SUFFICIENT TO GET UTILITY GROUPS TO DROP THEIR OVERALL OPPOSITION TO THE ENERGY TAX ADMINISTRATION OFFICIALS AND SOME IN CONGRESS SAID TREASURY SECRETARY LLOYD BENTSEN RESISTED MAKING THE CONCESSION TO REP BREWSTER MR BENTSEN PREFERRED TO SAVE THE BARGAINING CHIT FOR COMING NEGOTIATIONS IN THE SENATE FINANCE COMMITTEE WHERE THE PRESENCE OF ENERGYSTATE SENATORS POSES A THREAT TO THE ENERGY TAX SEN DAVID BOREN D OKLA HAS A PROPOSAL SIMILAR TO REP BREWSTER'S ANOTHER FACET OF MR BREWSTER'S PROPOSAL POSED A FINAL HANGUP IN TALKS WITH THE ADMINISTRATION YESTERDAY MR BREWSTER'S ORIGINAL PROPOSAL WOULD HAVE LEVIED A UNIFORM TAX ON EVERY KILOWATT HOUR OF ELECTRICITY SOLD ENVIRONMENTALISTS WHO CALLED ON MR GORE FOR ASSISTANCE WANT TO PRESERVE THE ELEMENTS OF MR CLINTON'S PROPOSAL THAT GIVE UTILITIES AN INCENTIVE TO BURN THE CLEANEST FUELS THE ADMINISTRATION CONCURS AND IS PUSHING FOR A TAX ON ELECTRIC BILLS THAT WOULD VARY DEPENDING ON THE MIX OF FUELS A UTILITY USES ON ANOTHER ISSUE BEFORE THE WAYS AND MEANS COMMITTEE THE PRESIDENT FACES AN UPHILL BATTLE FOR HIS PROPOSAL TO RAISE THE CORPORATE TAX RATE TO 36 FROM 34 PANEL MEMBERS LED BY CHAIRMAN DAN ROSTENKOWSKI D ILL WANT TO HOLD THE RATE TO 35 IN HOPES OF MOBILIZING BUSINESS SUPPORT FOR THE BILL BUT THAT PROSPECT IN TURN HAS PROVOKED OPPOSITION AMONG A GROUP OF LIBERAL HOUSE DEMOCRATS WHO AREN'T ON THE COMMITTEE THEY WANT AT LEAST A 36 CORPORATE RATE AND THEIR PROTESTS COULD THREATEN THE BILL THIS MONTH WHEN IT REACHES THE HOUSE FLOOR THIS IS REALLY A MINIMAL REQUEST FOR SACRIFICE BY THE CORPORATE COMMUNITY SAID REP MICHAEL SYNAR D OKLA THE DEMOCRATIC STUDY GROUP A RESEARCH ARM OF HOUSE LIBERALS ISSUED A REPORT CONCLUDING THAT EVEN AT 36 CORPORATE TAX RATES WILL REMAIN AT OR NEAR THEIR LOWEST LEVELS IN MODERN HISTORY MEMBERS OF THE TAX COMMITTEE WANT THE SMALLER INCREASE IN THE CORPORATE TAX RATE AS AN ALTERNATIVE TO MR CLINTON'S PROPOSED INVESTMENT TAX CREDIT BUT THE TAX CREDIT FOR BIG BUSINESS WOULD HAVE BEEN A TEMPORARY BENEFIT WHILE AS LOBBYISTS NOTED THE INCREASE IN THE TAX RATE WOULD BE PERMANENT A SMALLER TAX INCREASE HOWEVER WOULD MEAN FAR FEWER REVENUES TO REDUCE THE FEDERAL DEFICIT IN THE LONG RUN THE TREASURY ARGUES TIMOTHY NOAH CONTRIBUTED TO THIS ARTICLE 9305110043 930511 POLITICS & POLICY ABORTION COVERAGE LOOKS LIKE THE MOST BITTER PILL FOR SOME IN PRESCRIPTION FOR HEALTHCARE REFORM BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GETTING HEALTHCARE REFORM THROUGH CONGRESS WILL BE TOUGH ENOUGH BY ITSELF BUT TOSS IN ANOTHER CONTROVERSY AND THE MIXTURE COULD BE LETHAL ESPECIALLY IF THE ISSUE IS ABORTION PRESIDENT CLINTON IS EXPECTED TO INCLUDE ABORTION IN HIS PLAN'S BASIC BENEFITS PACKAGE A MOVE THAT ALREADY HAS LOBBYISTS ON BOTH SIDES OF THE ISSUE AND MEMBERS OF CONGRESS PREPARING FOR A FIGHT THE PROPOSAL COULD TURN THE HEALTHCARE DEBATE INTO A HIGHSTAKES BATTLE THAT DETERMINES WHETHER PRIVATE INSURANCE WILL PAY FOR THE BULK OF 16 MILLION ABORTIONS PERFORMED IN THE US EACH YEAR INCLUDING ABORTION IN A UNIVERSAL HEALTH PLAN WOULD PROVIDE COVERAGE FOR ABORTIONS FOR POOR WOMEN THAT BY LAW NOW CAN'T BE PAID FOR WITH FEDERAL FUNDS BUT IT ALSO WOULD RISK LOSING THE SUPPORT OF THE ROMAN CATHOLIC CHURCH A LONGTIME ADVOCATE OF HEALTHCARE REFORM EXCLUDING ABORTION WOULD ELIMINATE COVERAGE FOR MILLIONS OF WOMEN WHO NOW HAVE IT AND RAISE HUGE PROBLEMS FOR MR CLINTON WHO CAMPAIGNED AS A STRONG ABORTIONRIGHTS ADVOCATE I DON'T THINK BILL CLINTON WANTS TO END HIS FIRST YEAR IN OFFICE MAKING ABORTION LESS AVAILABLE TO AMERICAN WOMEN SAYS WILLIAM HAMILTON DIRECTOR OF PLANNED PARENTHOOD'S WASHINGTON OFFICE THIS IS GOING TO BE AN ENORMOUS STICKING POINT NO MATTER WHAT ELSE IS IN THE HEALTHCARE REFORM PACKAGE SAYS HELEN ALVARE A DIRECTOR IN THE PROLIFE OFFICE OF THE NATIONAL CONFERENCE OF CATHOLIC BISHOPS TODAY US ARCHBISHOPS ARE TO HOLD A PRIVATE MEETING IN CHICAGO TO DISCUSS HOW TO DEAL WITH THE ISSUE THE CLINTON HEALTHCARE PLAN WHICH THE PRESIDENT PLANS TO ANNOUNCE NEXT MONTH ISN'T EXPECTED TO MAKE ANY DIRECT REFERENCES TO ABORTION INSTEAD THE SUBJECT WILL BE CLOAKED IN MEDICAL TERMS IN A SECTION ON COMPREHENSIVE REPRODUCTIVE HEALTH SERVICES THE PLAN IS EXPECTED TO OFFER COVERAGE FOR ALL MEDICALLY APPROPRIATE PROCEDURES THE TERM MEDICALLY APPROPRIATE WILL BE DEFINED AS PROPER TREATMENT FOR A CONDITION THAT FALLS WITHIN THE STANDARDS OF PROFESSIONALLY ACCEPTED MEDICAL PRACTICE SUCH APPROPRIATE TREATMENTS INCLUDE ABORTION TO ABORTION OPPONENTS THE ISSUE IS FEDERAL MANDATES IN OTHER WORDS WHETHER THE GOVERNMENT CAN ORDER PRIVATE COMPANIES TO PAY FOR ABORTIONS AND WHETHER TAX INCREASES FOR THE HEALTH PLAN CAN INDIRECTLY SUBSIDIZE ABORTION THIS IS A MORE DIRECT FORM OF GOVERNMENTFORCED COLLABORATION THAN FEDERAL FUNDING THIS WOULD COVER THE ENTIRE POPULATION YOU WOULDN'T BE ABLE TO ESCAPE IT SAYS DOUGLAS JOHNSON LEGISLATIVE DIRECTOR FOR THE NATIONAL RIGHT TO LIFE COMMITTEE ADVOCATES FOR ABORTION RIGHTS VIEW THE ISSUE AS PART OF THE CONTINUING STRUGGLE OVER WOMEN'S ACCESS TO THE OPERATION IF THE GOVERNMENT HEALTH PLAN EXCLUDES ABORTION MILLIONS OF WOMEN WHO CURRENTLY HAVE INSURANCE COVERAGE OF REPRODUCTIVE HEALTH INCLUDING ABORTION WILL HAVE IT TAKEN AWAY SAYS JAMES WAGONER POLITICAL DIRECTOR OF THE NATIONAL ABORTION RIGHTS ACTION LEAGUE UNLESS ABORTION IS INCLUDED AS A STANDARD BENEFIT ONLY WOMEN WHO PAY FOR SUPPLEMENTAL INSURANCE COULD HAVE THEIR OPERATIONS PAID FOR HE SAYS WHILE IT ISN'T KNOWN HOW MANY PRIVATE HEALTH PLANS CURRENTLY COVER ABORTIONS BENEFITS CONSULTANTS THINK MOST PLANS PAY FOR THE OPERATIONS MANY INSURANCE CARRIERS SAY THEY COVER ONLY MEDICALLY NECESSARY ABORTIONS BUT THEY RARELY TRY TO DETERMINE WHETHER AN ABORTION IS ELECTIVE ACCORDING TO TOWERS PERRIN A BENEFITS CONSULTING FIRM WHETHER THEY'RE DOING IT KNOWINGLY OR UNKNOWINGLY MOST INSURANCE CARRIERS ARE PROBABLY PAYING FOR ELECTIVE ABORTION A TOWERS PERRIN SPOKESMAN SAYS GOVERNMENT EMPLOYEES AND MOST INDIGENT WOMEN HOWEVER MUST PAY FOR ELECTIVE ABORTIONS BECAUSE OF SUCH FEDERAL RESTRICTIONS AS THE HYDE AMENDMENT WHICH BARS THE FEDERAL GOVERNMENT FROM SPENDING TAX DOLLARS ON THE OPERATIONS PRESIDENT CLINTON HAS PROPOSED TO ELIMINATE THE RESTRICTION IN HIS 1994 BUDGET MEANWHILE ONLY INDIGENT WOMEN IN 13 STATES CAN RECEIVE LOCAL MEDICAID MONEY TO PAY FOR THEIR OPERATIONS INCLUDING ABORTION AS A BENEFIT MIGHT BE POLITICALLY COSTLY BUT IT WOULD ADD LITTLE TO THE PLAN'S FINANCIAL COSTS TOWERS PERRIN RECENTLY ESTIMATED THAT IF ONE FEDERAL AGENCY ADDED ELECTIVE ABORTION TO ITS HEALTH PLAN THE EMPLOYER'S PREMIUM WOULD RISE JUST ONETENTH OF 1 AND A SINGLE EMPLOYEE'S MONTHLY PAYROLL DEDUCTION WOULD INCREASE 18 CENTS FAMILY COVERAGE WOULD COST 50 CENTS A MONTH THE COMPANY SAID A FIRSTTRIMESTER ABORTION USUALLY COSTS 250 TO 300 PAYING FOR INDIGENT WOMEN'S ABORTIONS WOULD COST THE FEDERAL GOVERNMENT 63 MILLION TO 115 MILLION ACCORDING TO ESTIMATES FROM ABORTIONRIGHTS AND ANTIABORTION GROUPS EVEN THE HIGHER ESTIMATE WOULD BE A MINUSCULE PART OF AN OVERALL HEALTH PLAN EXPECTED TO BE IN THE MULTIBILLIONDOLLAR AREA BUT ABORTION OPPONENTS ARE MORE CONCERNED WITH THE MORAL ASPECTS OF THE HEALTH PLAN THE CATHOLIC CHURCH WHICH HAS ADVOCATED NATIONAL HEALTH INSURANCE FOR MORE THAN TWO DECADES IS DISTURBED BY THE EXPECTED ABORTION COVERAGE CATHOLIC LEADERS MET LAST MONTH WITH HILLARY RODHAM CLINTON ABOUT THE ADMINISTRATION'S HEALTHCARE PLAN WE BELIEVE IT WOULD BE A MORAL TRAGEDY A SERIOUS POLICY MISJUDGMENT AND A MAJOR POLITICAL MISTAKE TO BURDEN HEALTHCARE REFORM WITH ABORTION COVERAGE THAT MOST AMERICANS OPPOSE AND THE FEDERAL GOVERNMENT HAS NOT FUNDED FOR THE LAST 17 YEARS AUXILIARY BISHOP JOHN H RICARD CHAIRMAN OF THE UNITED STATES CATHOLIC CONFERENCE WROTE IN A LETTER TO MRS CLINTON LAST MONTH THE CHURCH SPONSORS THE LARGEST NETWORK OF NONPROFIT HOSPITALS AND NURSING HOMES IN THE COUNTRY SERVING ABOUT 40 MILLION PEOPLE EACH YEAR THE HEALTH PLAN PROBABLY WILL INCLUDE A CONSCIENCE CLAUSE WHICH WOULD ALLOW CATHOLIC HOSPITALS TO REFUSE TO PERFORM ABORTIONS BUT THAT WOULDN'T APPEASE CHURCH LEADERS WE CAN'T TRADE THINGS OFF MS ALVARE SAYS KILLING IS GOING TO BE INCLUDED IN A BASIC BENEFITS PACKAGE AS WELL AS HEALING WE CAN'T ACCEPT SAVING SOME LIVES AND GIVING UP OTHERS THE FINAL DECISION WILL BE MADE BY A NEW CONGRESS THAT IS VIRTUALLY UNTESTED ON THE ABORTION ISSUE WHILE ANTIABORTION MEMBERS OF CONGRESS WERE FEARED AS A MIGHTY POLITICAL FORCE IN THE PAST THE NEWLY ELECTED CLASS OF FEMALE DEMOCRATIC LAWMAKERS ALL OF WHOM SUPPORT ABORTION RIGHTS MAY BE ABLE TO OFFSET THEIR POWER IN THE END SOME POLITICAL ANALYSTS BELIEVE THE LAWMAKERS MAY SEARCH FOR SOME MIDDLE GROUND THEY MAY LET EACH STATE DECIDE WHETHER TO INCLUDE ABORTION IN ITS HEALTH PLAN A COMPROMISE NEITHER ABORTION RIGHTS ADVOCATES NOR OPPONENTS WOULD REALLY LIKE 9305110042 930511 BUSINESS BRIEF SPRINT CORP JOINT MARKETING IS PLANNED FOR ELECTRONIC WHITE PAGES SPRINT CORP KANSAS CITY MO SAID IT WOULD BEGIN JOINTLY MARKETING AN ONLINE ELECTRONIC WHITE PAGES TELEPHONE DIRECTORY TO BUSINESS CUSTOMERS SPRINT'S PROGRAM WILL BE OFFERED THROUGH DIRECTORYNET INC A UNIT OF TELSTRA CORP FORMERLY TELECOM AUSTRALIA ELECTRONIC WHITE PAGES ALLOW ELECTRONIC ACCESS TO THE DIRECTORY ASSISTANCE DATABASES OF LOCAL TELEPHONE COMPANIES NATIONWIDE THE SPRINT SYSTEM WILL USE THE SPRINTNET PUBLIC DATA NETWORK TO ACCESS AND DELIVER THE SERVICE TO USER DESKTOP TERMINALS SEVERAL REGIONAL BELL OPERATING COMPANIES AND LONGDISTANCE COMPANIES INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO HAVE BEEN TESTING OR ALREADY OFFER DIFFERENT VERSIONS OF ELECTRONIC WHITE PAGES 9305110041 930511 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY APRIL 28 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9305110040 930511 TECHNOLOGY BRIEF INDIVIDUAL INC ELECTRONIC INFORMATION FIRM OFFERS CUSTOMIZED NEWS FAX IN A MOVE TOWARD THE PERSONAL NEWSPAPER INDIVIDUAL INC OF CAMBRIDGE MASS UNVEILED A 4995AMONTH PERSONALIZED FAX PUBLICATION CALLED HEADSUP INDIVIDUAL SAID SUBSCRIBERS CAN SELECT UP TO 10 TOPICS FROM A LIST OF 700 SUCH AS SEMICONDUCTORS OR OPTICAL STORAGE AND RECEIVE A ONEPAGE DIGEST OF NEWS ARTICLES ABOUT THEM DAILY SUBSCRIBERS CAN REQUEST THE FULL TEXT OF ONE ARTICLE A MONTH FREE AND MORE FOR 495 EACH INDIVIDUAL'S COMPUTER SELECTS STORIES FROM SOME 200 NEWS WIRES AND PUBLICATIONS AND GENERATES THE BRIEFS FOR EACH FAX THE COMPUTER ALSO WILL TRACK THE FULL TEXTS A SUBSCRIBER REQUESTS AND ACCORDINGLY ADJUST THE MIX OF BRIEFS SENT THAT SUBSCRIBER EACH MONTH CLOSELY HELD INDIVIDUAL A FOURYEAROLD ELECTRONIC INFORMATION SERVICE ALSO PRODUCES FIRST A FULLTEXT INFORMATION SERVICE THAT HAS 15000 USERS AT 500 LOCATIONS 9305110039 930511 STRIKE BY MINERS TARGETS PORTIONS OF COAL FIRMS INDUSTRY ASSOCIATION BALKED AT DEMANDS FOR JOBS IN NONUNION OPERATIONS BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL THE UNITED MINE WORKERS STRUCK THREE MAJOR COAL PRODUCERS YESTERDAY AFTER THE BITUMINOUS COAL OPERATORS ASSOCIATION BALKED AT DEMANDS THAT UNION MEMBERS RECEIVE ALL JOBS AT WHAT ARE NOW NONUNION OPERATIONS THE UNION TARGETED PARTS OF AMAX INC ARCH MINERAL CORP AND ZEIGLER COAL HOLDING CO IT SAID THE STRIKE WHICH IS CENTERED IN ILLINOIS AND INDIANA INVOLVED ABOUT 2000 WORKERS THE UMW AND THE BCOA WHICH REPRESENTS THE COALPRODUCING SUBSIDIARIES OF 12 COMPANIES REMAIN FAR APART ON THE ISSUE OF JOB SECURITY THE UMW WANTS TO STOP COAL PRODUCERS FROM SETTING UP AFFILIATED COMPANIES THAT RUN NONUNION MINES WHEN COMPANIES CREATE JOBS WE WANT THEM SAID RICHARD TRUMKA UMW'S PRESIDENT HE STRESSED THAT THE STRIKE WOULD BE CONTINUING AND ESCALATING BUT SAID HE HAD NO TIME FRAME ON WHEN THE UMW WOULD MAKE ITS NEXT MOVE IN AN INTERVIEW MR TRUMKA SAID THE UNION HAS DRAMATICALLY LOWERED COSTS AND BOOSTED PRODUCTIVITY OVER THE PAST DOZEN YEARS IF THAT DOESN'T EARN US THE RIGHT TO JOBS WITH A FUTURE WHAT DOES HE ASKED INDUSTRY OBSERVERS AGREED THAT THE UMW HAS INCREASED PRODUCTIVITY BUT SAID THE GROUP'S WAGES REMAIN ABOVE THOSE OF NONUNION OPERATIONS WHICH MAKES A BIG DIFFERENCE IN THE HIGHLY COMPETITIVE COAL MARKET UMW MEMBERS AVERAGE 28 AN HOUR IN PAY AND BENEFITS WHILE NONUNION COAL WORKERS RECEIVE BETWEEN 26 AND 27 AN HOUR ACCORDING TO RALPH BARBARO A CONSULTANT WITH ENERGY VENTURES ANALYSIS INC IN ARLINGTON VA BUT MR BARBARO SAID NONUNION WORKERS ARE 20 TO 25 MORE PRODUCTIVE THAN UMW MEMBERS BECAUSE THEY AREN'T INHIBITED BY STRICT WORK RULES THE BCOA HAS OFFERED UMW MEMBERS SOME JOBS IN NONUNION MINES THIS PROPOSAL WOULD HAVE REPRESENTED A SIGNIFICANT EXPANSION OF THE JOB OPPORTUNITIES PROVISION OF THE EXISTING CONTRACT THE BCOA SAID IN A STATEMENT THE GROUP SAID IT WAS DISAPPOINTED BY THE UMW'S ACTION THE STRIKE AFFECTED OLD BEN COAL CO A UNIT OF ZEIGLER FAIRVIEW HEIGHTS ILL PARTS OF AMAX COAL INDUSTRIES INC OWNED BY NEW YORKBASED AMAX AND PARTS OF ARCH MINERAL CORP OWNED BY ASHLAND OIL INC AND THE HUNT FAMILY OF TEXAS ZEIGLER IS THE NATION'S THIRDBIGGEST COAL PRODUCER WITH AMAX RANKING FOURTH AND ARCH PLACING 13TH ACCORDING TO RESOURCE DATA INTERNATIONAL INC A BOULDER COLO FIRM THAT TRACKS ENERGY ISSUES IT IS UNCLEAR HOW THIS SELECTIVE STRIKE WILL AFFECT MAJOR UTILITIES WHICH ARE COAL PRODUCERS' MAJOR CUSTOMERS BUT RAFAEL A VILLAGRAN AN ANALYST WITH LEHMAN BROTHERS POINTED OUT THAT STOCKPILES AT UTILITIES FELL DURING THE LATE WINTER COLD SNAP BECAUSE OF THAT IT WOULD TAKE JUST A TWOWEEKLONG STRIKE FOR COAL PRICES TO RISE HE SAID YESTERDAY'S STRIKE IS THE SECOND OF THE YEAR CALLED BY THE UMW ON FEB 2 THE UMW STRUCK TWO UNITS OF ST LOUISBASED PEABODY HOLDING CO A SUBSIDIARY OF HANSON PLC AFTER THE NATIONAL BITUMINOUS WAGE AGREEMENT EXPIRED THE UNION EXPANDED THE STRIKE ON MARCH 1 TO FIVE OTHER PRODUCERS BUT THE TWO SIDES AGREED TO A CONTRACT EXTENSION THE FOLLOWING DAY THE UMW AND THE BCOA HOWEVER HAD MADE LITTLE PROGRESS BEFORE THE FIRST STRIKE AND THEY FAILED TO CLOSE THAT GAP IN TALKS DURING THE EXTENSION DESPITE A LASTMINUTE EFFORT BY THE FEDERAL MEDIATION AND CONCILIATION SERVICE ON MAY 3 THE EXTENSION EXPIRED WITH NO NEGOTIATIONS SCHEDULED SAID MR TRUMKA WE ARE FURTHER APART NOW THAN WHEN WE STARTED 9305110038 930511 BUSINESS BRIEF PLAYERS INTERNATIONAL INC PARTNERSHIP TO BUILD HOTEL IS PLANNED WITH AMERIHOST PLAYERS INTERNATIONAL INC AND AMERIHOST PROPERTIES INC SAID THEY AGREED TO FORM A PARTNERSHIP TO BUILD A 120ROOM HOTEL NEXT TO THE PLAYERS RIVERBOAT CASINO IN METROPOLIS ILL THE COMPANIES SAID AMERIHOST WILL BE THE GENERAL PARTNER PLAYERS WHICH WILL CONTRIBUTE THE LAND WILL BE A LIMITED PARTNER WITH BETWEEN A 12 AND 15 STAKE EDWARD FISHMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PLAYERS SAID CONSTRUCTION IS EXPECTED TO START SOON AFTER FINAL APPROVALS FROM THE CITY OF METROPOLIS ILL THE PARTNERSHIP WILL ALSO BUILD THE SHELL OF A THEATER WITH MORE THAN 400 SEATS NEXT TO THE HOTEL THE THEATER WILL BE LEASED TO PLAYERS THE COMPANIES SAID PLAYERS INTERNATIONAL BASED IN CALABASAS CALIF IS A GAMBLING AND ENTERTAINMENT CONCERN AMERIHOST PROPERTIES BASED IN DES PLAINES ILL DEVELOPS AND MANAGES HOTELS 9305110037 930511 BUSINESS BRIEF MARRIOTT CORP OFFER TO SWAP INSTRUMENTS FOR EXISTING DEBT IS FILED MARRIOTT CORP FORMALLY FILED ITS OFFER TO SWAP STOCK CASH AND NEW BONDS FOR ABOUT 15 BILLION OF EXISTING DEBT PART OF ITS PLAN TO SPLIT THE LODGING COMPANY INTO A HOTEL MANAGEMENT UNIT AND A HIGHERRISK REAL ESTATE ARM ALTHOUGH THE CORE OF THE OFFER REMAINS UNCHANGED FROM TWO MONTHS AGO MARRIOTT'S FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SPELLS OUT AN UNAPPETIZING ALTERNATIVE FOR BONDHOLDERS WHO DON'T AGREE TO SWAP THEIR DEBT NEW BONDS WOULD HAVE HIGHER INTEREST RATES AND LONGER MATURITIES THAN PRESENT MARRIOTT BONDS AS WELL AS ADDITIONAL SECURITY AND OTHER COVENANTS DESIGNED TO ASSURE DEBT SERVICE ALTHOUGH THE BONDHOLDERS WOULD HAVE TO GIVE UP ANY POSSIBLE LEGAL CHALLENGE TO THE PLAN EXISTING BONDHOLDERS WOULDN'T HAVE THOSE PROTECTIONS MARRIOTT IS PROPOSING TO GIVE SHAREHOLDERS ONE SHARE IN MARRIOTT INTERNATIONAL INC ITS HOTEL MANAGEMENT ARM AND HOST MARRIOTT CORP ITS REALESTATE ARM FOR EACH SHARE OF MARRIOTT CORP STOCK THEY OWN THE OUTCOME OF THE DEBT EXCHANGE WON'T AFFECT THE SPINOFF WHICH SHAREHOLDERS WILL VOTE ON AT A JUNE 22 MEETING 9305110036 930511 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 301 30 TO 59 DAYS 303 60 TO 119 DAYS 305 120 TO 149 DAYS 306 150 TO 179 DAYS 307 180 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 308 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 303 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 711 60 DAYS 723 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 713 60 DAYS 723 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 9305110035 930511 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED MAY 7 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER HENRICO VA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON JUNE 1 1993 ITS INDUSTRIAL DEVELOPMENT REVENUE BONDS DUE JUNE 1 2001 CRESTAR BANK RICHMOND VA IS TRUSTEE SANTA ANA CALIF COMMUNITY REDEVELOPMENT AGENCY WILL REDEEM ON JUNE 1 1993 THE FOLLOWING SERIES 1983 A AND SERIES 1983 B CERTIFICATES 94 DUE 1994 95 DUE 1995 96 DUE 1996 97 DUE 1997 975 DUE 19981999 98 DUE 2000 99 DUE 2001 AND 10 DUE 20022008 FIRST INTERSTATE BANK OF CALIFORNIA CALABASAS CALIF IS TRUSTEE 9305110034 930511 TECHNOLOGY BRIEF XYTRONYX INC STOCK TUMBLES 13 AS FDA QUESTIONS GUMDISEASE KIT XYTRONYX INC SAID THE FOOD AND DRUG ADMINISTRATION HAS AGAIN QUESTIONED ITS ASYET UNMARKETED PERIODONTAL TISSUE MONITOR KIT AND THE AGENCY'S SKEPTICISM SENT XYTRONYX STOCK TUMBLING 13 YESTERDAY THE SAN DIEGOBASED BIOTECHNOLOGY COMPANY SAID THE FDA REQUESTED MORE CLINICAL STUDIES AND OTHER DATA CONCERNING THE KIT WHICH THE COMPANY SAYS WILL ASSIST DENTISTS IN DIAGNOSING PERIODONTAL DISEASE BY ANALYZING ENZYME LEVELS BETWEEN THE TEETH AND GUMS XYTRONYX STOCK TUMBLED FOLLOWING THE ANNOUNCEMENT CLOSING AT 650 A SHARE OFF 1 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE AT ONE POINT THE STOCK WAS OFF 1625 A SHARE XYTRONYX DIDN'T SAY WHAT INFORMATION THE FDA WAS ASKING FOR THE COMPANY FIRST SUBMITTED THE PERIODONTALTISSUE DIAGNOSTIC KIT FOR FDA APPROVAL IN 1989 9305110033 930511 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AAMES FINANCIAL CORP AN OFFERING OF ABOUT 22 MILLION COMMON SHARES VIA OPPENHEIMER & CO AND PRUDENTIAL SECURITIES INC CAPSTEAD MORTGAGE CORP A 500 MILLION SHELF REGISTRATION STATEMENT TO ISSUE COMMON STOCK PREFERRED STOCK DEBT SECURITIES AND WARRANTS CONCURRENT COMPUTER AN OFFERING OF COMMON STOCK TO RAISE ABOUT 60 MILLION VIA SALOMON BROTHERS AND NEEDHAM & CO CRYSTALLUME AN INITIAL OFFERING OF TWO MILLION SHARES OF COMMON STOCK VIA DAKIN SECURITIES CORP AND PENNSYLVANIA MERCHANT GROUP LTD INTERLINK ELECTRONICS INC AN INITIAL OFFERING OF 1350000 UNITS INCLUDING COMMON STOCK AND WARRANTS VIA COHIG & ASSOCIATES UNITED KNITTING INC AN INITIAL OFFERING OF 186 MILLION COMMON SHARES VIA WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS AND MORGAN KEEGAN & CO 9305110032 930511 TECHNOLOGY BRIEF CHIRON CORP VACCINE PROTOTYPE BLOCKS HEPATITIS IN SOME CHIMPS CHIRON CORP EMERYVILLE CALIF SAID A PROTOTYPE OF A VACCINE DEVELOPED IN A JOINT VENTURE WITH CIBAGEIGY LTD PREVENTED HEPATITIS INFECTION IN A GROUP OF CHIMPANZEES FIVE OF SEVEN CHIMPANZEES TESTED DIDN'T CONTRACT THE HEPATITIS C VIRUS AFTER BEING GIVEN A VACCINE DEVELOPED BY BIOCINE CO THE JOINT VENTURE FORMED WITH SWITZERLAND'S CIBAGEIGY CHIRON SAID THIS STUDY PROVIDES DATA THAT MAY ALLOW BIOCINE TO INITIATE HUMAN TRIALS IN 1994 DINO DINA BIOCINE PRESIDENT SAID BIOCINE IS DEVELOPING VACCINES FOR PREVENTIVE OR THERAPEUTIC USE AGAINST HERPES AIDS AND OTHER INFECTIOUS DISEASES 9305110031 930510 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 9305110030 930511 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE MORE SCHOOLING IS THE KEY TO IMPROVING WAGES OF BLACK WORKERS IN 1968 BLACK MEN EARNED 45 LESS THAN WHITE MEN SAYS RAND CORP ECONOMIST JAMES SMITH AFFIRMATIVE ACTION HELPED NARROW THE DIFFERENTIAL TO 29 BY 1977 BUT THERE HAS BEEN NO IMPROVEMENT SINCE MANY ANALYSTS BLAME CUTS AT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION BUT DR SMITH SAYS THE REASON IS BLACKS HAVE STOPPED GAINING ON WHITES IN EDUCATION THE TYPICAL BLACK MALE WORKER HAD 08 YEAR LESS OF SCHOOLING THAN HIS WHITE COUNTERPART IN 1989 COMPARED WITH A TWOYEAR GAP IN 1968 BUT THERE HAS BEEN LITTLE IMPROVEMENT SINCE 1980 CUTS IN FINANCIAL AID AMONG OTHER THINGS ACCOUNT FOR THE LACK OF PROGRESS THE EDUCATION GAP IS ESPECIALLY PERNICIOUS BECAUSE INCOME DISPARITIES BASED ON EDUCATION HAVE WIDENED EDUCATION IS THE PRINCIPAL MEDIUM FOR BLACK ECONOMIC MOBILITY CONCLUDES DR SMITH WHO URGES IMPROVING INNERCITY SCHOOLS RAISING BLACK ACHIEVEMENT AND RESTORING COLLEGE FINANCIAL AID ONE HUNDRED DAYS MANY EXECUTIVES SAY IT'S ENOUGH TIME TO JUDGE CLINTON THE FIRST 100 DAYS IS A CLEAR INDICATION OF WHETHER A CHIEF EXECUTIVE OFFICER OR PRESIDENT IS GOING TO GET ANYTHING DONE SAYS JOSEPH MACCHIA CEO OF GAINSCO INC FAIR OR NOT NOTES LYDALL INC CHIEF LEONARD JASKOL DIRECTORS SCRUTINIZE PRIVATESECTOR CEOS AFTER THREE MONTHS CLARK JOHNSON OF PIER I IMPORTS SAYS EXECUTIVES NORMALLY SHOULD BE GIVEN THREE YEARS ALTHOUGH HE GIVES CLINTON LESS TIME BECAUSE HIS JOB IS CRISIS MANAGEMENT BUT MICHAEL ADLER HEAD OF MOTO PHOTO INC SAYS 100DAY REVIEWS ARE THE SILLIEST THING I CAN THINK OF JUST FILLING KEY JOBS CAN TAKE MONTHS HE SAYS STILL HE FAULTS THE PRESIDENT FOR TRYING TO TACKLE TOO MUCH E LINN DRAPER CHAIRMAN OF AMERICAN ELECTRIC POWER CO THINKS ONE YEAR IS A FAIRER GAUGE BUT HE SAYS CLINTON ENCOURAGED THE RUSH TO JUDGMENT BY PROMISING DRAMATIC CHANGES SHAREHOLDERS SEEK TO LIMIT EXECUTIVE PAY BUT NONE PREVAIL YET THE INVESTOR RESPONSIBILITY RESEARCH CENTER COUNTS 74 PROXY PROPOSALS THIS YEAR TO RESTRICT EXECUTIVE COMPENSATION PLUS 32 MORE TO FORCE GREATER DISCLOSURE OR HOLD SPECIAL VOTES ON PAY GTE AETNA SPRINT TRANSAMERICA AND WASTE MANAGEMENT AMONG OTHERS ARE HIT WITH PAYLIMITATION PROXIES AT&T DUPONT AND GENERAL MOTORS FACE DISCLOSURE PROPOSALS THE MOST SUCCESSFUL PROPOSAL YET TO LIMIT EXECUTIVE PAY AT UJB FINANCIAL CORP GARNERED 241 OF THE VOTE LAST YEAR THE FIRST TIME SUCH PROPOSALS WERE ALLOWED THERE WERE FEWER THAN A DOZEN AND NONE TOPPED 16 APPROVAL THE PAY PROPOSALS SUFFER BECAUSE INSTITUTIONAL INVESTORS SO FAR HAVE STAYED ON THE SIDELINES BUT SOME ADVOCATES SAY THAT WILL CHANGE SOON CONSULTANT TOWERS PERRIN SAYS CEOS ON AVERAGE EARNED 1050000 LAST YEAR IN PAY AND BONUSES UP 8 FROM 1991 INCLUDING EXERCISED OPTIONS THE AVERAGE WAS 13 MILLION PERFORMANCE COUNTS KPMG PEAT MARWICK REPORTS THAT CASH COMPENSATION FOR CEOS LAST YEAR ROSE 116 AT 20 HIGHPERFORMING COMPANIES BUT WAS UP JUST 5 FOR 20 POOR PERFORMERS STOCK OPTIONS TOTALED FOUR TIMES SALARY AT SUCCESSFUL COMPANIES BUT JUST 25 TIMES PAY AT WEAK ONES PEOPLE POWER A TEAMSTERSLED SHAREHOLDER RESOLUTION TO ELIMINATE STAGGERED DIRECTORS' TERMS AT CONSOLIDATED FREIGHTWAYS WINS MORE THAN 35 APPROVAL IT WAS THE FIRST VOTE IN WHICH A UNION TOOK ADVANTAGE OF LIBERALIZED SEC PROXY RULES TO ORGANIZE EMPLOYEE SHAREHOLDERS YES BUT SOME 70 OF OFFICIALS FROM LARGE MULTIEMPLOYER HEALTH PLANS FAVOR A MANAGED COMPETITION SYSTEM WHICH CLINTON ADVOCATES BUT 72 HOPE THEY WILL BE EXEMPT THEY WERE POLLED BY THE INTERNATIONAL FOUNDATION OF EMPLOYEE BENEFIT PLANS POT MEETS KETTLE PLACEMENT CONSULTANT JAMES CHALLENGER CONDEMNS OFFICIALS FOR DESCRIBING THE ECONOMIC RECOVERY AS JOBLESS HE SAYS SUCH PRONOUNCEMENTS LEAD UNEMPLOYED WORKERS TO STOP LOOKING FOR JOBS BUT THREE DAYS LATER CHALLENGER REPORTS THAT THERE HAVE BEEN 202123 SEPARATE LAYOFF ANNOUNCEMENTS SO FAR THIS YEAR STAY ACTIVE PERSONNEL PROFESSIONALS ADVISE THE UNEMPLOYED PEOPLE OUT OF WORK SHOULD DO VOLUNTEER WORK TAKE CLASSES LEARN A NEW LANGUAGE ANYTHING THAT SAYS I DIDN'T JUST SIT AT HOME ADVISES THALIA LUCKY PRESIDENT OF EXECUTIVE RESOURCE MANAGEMENT IN ATLANTA STEPHEN UNGER MANAGING DIRECTOR AT SPENCER STUART IN LOS ANGELES SUGGESTS MAKING SPEECHES LECTURING AT SCHOOLS AND CONTRIBUTING TO INDUSTRY PUBLICATIONS IN SEEKING A JOB SHOW A WILLINGNESS TO DO WHATEVER A FIRM NEEDS DONE URGES PRICE HARDING PRESIDENT OF BELL OAKS CO AN ATLANTA SEARCH FIRM DANIEL ROMANELLO WHO WORKS IN ATLANTA FOR CHICAGOBASED SEARCH FIRM SPENCER STUART SUGGESTS LEARNING ABOUT A COMPANY'S BUSINESS IN ADVANCE THEN SHOWING UP IN PERSON TO APPLY CHRYSLER PERSONNEL MANAGERS SUGGEST PARTTIME WORK TO KEEP SKILLS CURRENT TALK TO MANY PEOPLE CAST AS WIDE A NET AS POSSIBLE AND DON'T TAKE NO FOR AN ANSWER URGES WILLIAM SIMON MANAGING PARTNER AT KORN/FERRY INTERNATIONAL IN LOS ANGELES THE CHECKOFF LETTER CARRIERS FROM 195 UNION LOCAL BRANCHES WILL COLLECT FOOD DONATIONS ON MAIL ROUTES SATURDAY TO HELP STOCK LOCAL FOOD BANKS NUDE DANCERS AT PACER'S A SAN DIEGO NIGHT CLUB PETITION THE NLRB FOR UNION REPRESENTATION 9305110029 930511 WHO'S NEWS VIRGINIA BANKER IS NAMED BY AT&T TO CREDITCARD POST BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL JACKSONVILLE FLA AMERICAN TELEPHONE & TELEGRAPH CO NAMED DAVID K HUNT TO HEAD ITS CREDITCARD BUSINESS SUCCEEDING PAUL KAHN WHO RESIGNED IN FEBRUARY OVER DIFFERENCES IN STRATEGY MR HUNT 47 YEARS OLD HAD BEEN SENIOR EXECUTIVE VICE PRESIDENT OF SIGNET BANKING CORP'S CREDITCARD BUSINESS SIGNET RICHMOND VA IS A REGIONAL BANKING FIRM MR HUNT HAS EXHIBITED HIS ABILITY TO RUN A SHARP CREDITCARD OPERATION SAID SPENCER NILSON OF THE NILSON REPORT A SANTA MONICA CALIF NEWSLETTER THAT MONITORS THE CREDITCARD INDUSTRY AT&T OFFICIALS SAID THEY EXPECT MR HUNT TO HELP BUILD UP THE CREDITCARD BUSINESS AND DEEPEN RELATIONSHIPS WITH AT&T CUSTOMERS WHO ARE BOTH LONGDISTANCE AND CREDITCARD USERS SIGNET IS A LEADING ISSUER OF SECURED CREDIT CARDS FOR PEOPLE CONSIDERED HIGH CREDIT RISKS SUCH CARD ACCOUNTS REQUIRE A CUSTOMER TO DEPOSIT MONEY INTO A SAVINGS ACCOUNT AS COLLATERAL FOR THE LINE OF CREDIT SUCH CARDS ARE USUALLY AIMED AT PEOPLE WITH NO CREDIT HISTORY SUCH AS STUDENTS IMMIGRANTS DIVORCEES AND WIDOWS OR TO PEOPLE WITH PREVIOUS CREDIT PROBLEMS MR HUNT UNDERSTANDS WE EXPECT UCS UNIVERSAL CARD SERVICES TO BE AN INTEGRAL PART OF AT&T SAID ROBERT RANALLI PRESIDENT OF AT&T CONSUMER SERVICES SINCE THE AT&T UNIVERSAL CARD WAS STARTED IN 1990 IT HAS BECOME THE SECOND LARGEST ISSUER OF BANK CREDIT CARDS IN THE US WITH 11 MILLION ACCOUNTS CURRENTLY AND 16 MILLION CARDS ISSUED SINCE 1990 LAST YEAR CARD HOLDERS CHARGED 19 BILLION FOR CALLS AND PURCHASES AT&T SAID CITICORP IS THE LARGEST CARD ISSUER MR HUNT'S PREDECESSOR MR KAHN AND AT&T REPORTEDLY DIFFERED OVER THE DIRECTION THE COMPANY'S CREDITCARD BUSINESS SHOULD TAKE AT THE TIME OF HIS RESIGNATION MR KAHN SAID HE WANTED TO PUSH FASTER INTO DIVERSIFYING THE BUSINESS BUT AT&T WASN'T WILLING TO GO INTO IT AT THE SAME PACE MR KAHN HAD BEEN LOOKING TO GET AT&T INTO OTHER FINANCIAL PRODUCTS AS WELL AND SAID LAST YEAR THAT HE WAS CONSIDERING A MOVE INTO BANKING AND INVESTMENT PRODUCTS SUCH AS CERTIFICATES OF DEPOSIT AND MUTUAL FUNDS MR RANALLI ACKNOWLEDGED THAT MR KAHN LEFT BEHIND A NUMBER OF PROPOSALS FOR DIVERSIFICATION BUT EXPECTED NO SIGNIFICANT CHANGES SOON I'M EXPECTING MR HUNT TO EVALUATE ALL OPPORTUNITIES HE SAID BUT THE FOCUS OF THE CARD BUSINESS HAS TO BE ON ITS PRIMARY RELATIONSHIP WITH ITS CUSTOMERS AND THE COMPANY'S LONGDISTANCE BUSINESS HE SAID 9305110028 930511 LEISURE & ARTS ON SPORTS CLOSE CALL FOR SIR CHARLES AND THE SUNS BY FREDERICK C KLEIN PHOENIX THE SIGN OVER CHARLES BARKLEY'S LOCKER READS THAT WHICH DOES NOT KILL US ONLY MAKES US STRONGER AND THE OLD SAW IS ABOUT TO BE PUT TO A TEST BARKLEY AND HIS PHOENIX SUNS TEAMMATES WHO'D COMPILED THE BEST RECORD IN THE NATIONAL BASKETBALL ASSOCIATION'S LATE REGULAR SEASON 6220 HAD JUST SKINNED BY THE LONGINTOOTH LOS ANGELES LAKERS IN THE FIFTH AND DECISIVE GAME OF A FIRSTROUND PLAYOFF SERIES EVERYBODY THOUGHT THEY'D WIN EASILY DOWN BY FOUR POINTS WITH A MINUTE LEFT IN REGULATION PLAY THE SUNS VERY NEARLY HAD THEIR SEASON ENDED BEFORE AN ANGUISHED CROWD OF 19000 IN THEIR AMERICA WEST ARENA HOME AND NEEDED A REMARKABLE OUTBURST OF SCORING REBOUNDING AND SHOT BLOCKING BY ROOKIE CENTER OLIVER MILLER IN OVERTIME TO FINALLY PREVAIL 112104 BY THE MOTTO'S LOGIC THAT OUGHTA MAKE THEM BASKETBALL'S VERSION OF ARNOLD SCHWARZENEGGER THAT WAS WHAT SPORTS ARE ALL ABOUT COMPETITION SAID SIR CHARLES AFTER THE FRAY ACTING AS THOUGH HE'D ENJOYED THE ORDEAL ASKED HOW CLOSE HE THOUGHT HIS TEAM HAD COME TO LOSING HE FELL SILENT FOR A MOMENT TOO CLOSE HE FINALLY REPLIED THE SAME COULD HAVE BEEN SAID BY SOME OTHER FAVORED TEAMS IN AN NBA PLAYOFF CAMPAIGN THAT'S OFF TO ITS BEST AND MOST EXCITING START IN YEARS ON SATURDAY THE HOUSTON ROCKETS RATED JUST BEHIND THE SUNS IN THE LEAGUE'S WESTERN CONFERENCE JUST SQUEEZED BY THE LOS ANGELES CLIPPERS IN A TIGHTLY PLAYED FIFTH GAME AND EARLIER ON SUNDAY THE EASTERN CONFERENCE CLEVELAND CAVALIERS WHO ALSO HARBOR CHAMPIONSHIP ASPIRATIONS NARROWLY SURVIVED A DOORDIE FIFTH AGAINST A NEW JERSEY NETS GANG THAT WAS PLAYING WITHOUT ITS STARTING CENTER AND POINT GUARD EVEN TEAMS THAT WON THEIR SERIES MORE HANDILY LIKE THE EASTERN TOPSEEDED NEW YORK KNICKS CHARLOTTE HORNETS AND SAN ANTONIO SPURS WOULD HAVE FACED FIFTH GAMES IF NOT FOR OVERTIME VICTORIES IF THE TOURNAMENT'S ROUNDS TWO THROUGH FOUR FOLLOW THE SAME COURSE WITH THEIR BESTOFSEVENGAME FORMATS THE SEASON COULD BRUSH AGAINST THE FOURTH OF JULY AND THE FINGERNAILCLIPPER INDUSTRY COULD HAVE SALES PROBLEMS NO FIRSTROUND SERIES MATCHED THE SUNSLAKERS DUEL THOUGH IT BEGAN WITH THE LAKERS THE ONLY PLAYOFF SQUAD WITH A REGULARSEASON LOSING MARK 3943 WINNING TWO GAMES ON THE SUNS' HOME COURT NO CONFERENCE EIGHTH SEED EVER DID THAT THEN THE SUNS WON TWO IN LA AND THE FINALE SUNDAY NO TEAM THAT HAD FALLEN BEHIND 02 AT HOME HAD HERETOFORE RALLIED TO WIN A BESTOFFIVE PLAYOFF SERIES ADDING POIGNANCY TO THE PROCEEDINGS WAS THAT THE PARTY OF THE SECOND PART THE LAKERS WERE BASKETBALL'S BEST TEAM OF THE 1980S AND THIS UNDOUBTEDLY WAS ITS LAST HURRAH FIRST KAREEM ABDULJABBAR RETIRED IN 1989 FROM THE TEAM THAT WON LEAGUE TITLES IN 1980 '82 '85 '87 AND '88 THEN EARVIN MAGIC JOHNSON BOWED OUT AFTER CONTRACTING THE AIDS VIRUS BYRON SCOTT A STARTING GUARD IN THE LAST THREE OF THOSE CHAMPIONSHIP YEARS BECOMES A FREE AGENT BEFORE NEXT SEASON AND IS UNLIKELY TO RETURN THE FUTURES OF FORWARDS JAMES WORTHY AND AC GREEN OTHER STALWARTS IN BETTER DAYS ARE SIMILARLY IN DOUBT ME JAMES AND AC ALL MADE REMARKS TO THE TEAM AFTER THE GAME IT WAS PRETTY EMOTIONAL SAID SCOTT WE DIDN'T LOOK AT NEGATIVES WE TALKED ABOUT THE GOOD MEMORIES WE HAD A LOT OF THOSE ALL GOOD BASKETBALL TEAMS HAVE SIMILARITIES AND THE PRESENTDAY SUNS BEAR SOME RESEMBLANCE TO THE '80S LAKERS IT ISN'T PHYSICAL UNLIKE THE 7FOOT2 JABBAR BARKLEY THE SUNS' PRIMARY BIG MAN IS MOSTLY WIDE A KIND OF RHINOCEROS IN SHORT PANTS AND THE PHOENIX PLAYMAKER 6FOOT1 KEVIN JOHNSON IS EIGHT INCHES SHORTER THAN MAGIC HIS NAMESAKE AND OLDLAKERS' COUNTERPART BUT THE STOCKINTRADE OF BOTH IS/WAS RUNNING AND SCORING THE SUNS' 1134 POINTSPERGAME AVERAGE LED THE LEAGUE AND THEY FELL SHORT OF 100 POINTS ONLY NINE TIMES IN 82 OUTINGS THAT THE SUNS LOST SIX OF THOSE NINE SUB100 GAMES WASN'T LOST ON RANDY PFUND THE LAKERS COACH AND HE SET ABOUT SLOWING THE TEMPO TO HIS PLAYERS' CURRENT GERIATRIC PACE IN THE PLAYOFF SERIES HOLDING THE SUNS TO 95 POINTS A GAME IN REGULATION TIME DURING THE SET GAVE LA ITS CHANCE TO WIN THEY MADE US PLAY THEIR STYLE AND THAT MADE THEM HARD TO BEAT JOHNSON NOTED IF IT WEREN'T FOR A COUPLE OF FAVORABLE TURNS OF FORTUNE DOWN THE STRETCH SUNDAY THE SUNS WOULDN'T HAVE WON AT ALL THE FIRST CAME WITH 2 1/2 MINUTES LEFT IN REGULATION AFTER THE LAKERS LED BY WORTHY HAD OVERCOME A 8373 PHOENIX LEAD TO TIE AT 89 SUN GUARD DAN MAJERLE PUT UP A JUMP SHOT AS THE 24SECOND SHOT CLOCK EXPIRED AND AS IT NEARED THE HOOP BARKLEY LEAPED TO CATCH AND DUNK IT THE BASKET WAS ALLOWED ALTHOUGH IT COULD HAVE BEEN NULLIFIED ON GROUNDS IT CAME TOO LATE OR THAT BARKLEY INTERFERED WITH A SHOT THAT D A CHANCE OF SCORING GOOD CALL BARKLEY REMARKED LATER THE REFS NEVER MAKE MISTAKES BREAK NO 2 CAME ON MAJERLE'S BASKET WITH 13 SECONDS LEFT THAT EARNED THE SUNS A TIE AT 95 IT CAME ON AN OFFBALANCE SHOT FROM ABOUT 20 FEET I JUST LET IT GO IT WAS A DIFFICULT SHOT BUT IT WENT IN ADMITTED MAJERLE WHO'D TAKEN HIS PREGAME LUNCH THROUGH AN IV TUBE AS A RESULT OF A BOUT WITH THE FLU SCOTT'S 23FOOTER AS TIME EXPIRED HIT THE FRONT RIM AND THE OVERTIME WAS ALL PHOENIX MILLER WHO HAS BARKLEYESQUE GIRTH ON A 6FOOT9 FRAME CHARLES STANDS ABOUT 65 SCORED SIX OF HIS TEAM'S FIRST NINE POINTS IN OVERTIME AND NINE OF ITS 17 ALL TOLD ADD HIS FIVE REBOUNDS IN THE EXTRA PERIOD A BLOCKED SHOT AND A LOOSEBALL RETRIEVAL OR TWO AND YOU HAVE A QUITE BUSY FIVE MINUTES MILLER HAS BATTLED WITH HIS WEIGHT LOSING SOME 40 POUNDS TO REACH HIS PRESENT 285 AND HIS EMERGENCE SUNDAY AFTER A SEASON IN WHICH HE AVERAGED BUT 56 POINTS A GAME BODES WELL FOR A TEAM THAT HAS LACKED CONSISTENCY IN THE CENTER POST FOR HIS OWN PART THE YOUNG MAN SAID HIS BASKETBALL FOES PALE IN COMPARISON TO OTHER ADVERSARIES MCDONALD'S JACK IN THE BOX PIZZA HUT THEY'RE REALLY TOUGH HE SAID IF I CAN AVOID THEM THE REST'LL BE EASY 9305110027 930511 TECHNOLOGY MICROSOFT'S DOS 60 IS STILL SELLING WELL DESPITE REPORTS OF COMPRESSION' GLITCH BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP'S NEW OPERATING SYSTEM CONTINUES TO BE DOGGED BY REPORTS THAT IT CAN CAUSE COMPUTER GLITCHES LEADING SOME DEALERS TO WARN CUSTOMERS NOT TO USE CERTAIN FEATURES BUT THE PROGRAM IS A HOT SELLER ANYWAY A TESTAMENT TO MICROSOFT'S MARKET DOMINANCE THE OPERATING SYSTEM MSDOS 60 IS THE LATEST VERSION OF THE PROGRAM THAT IS THE DE FACTO STANDARD FOR PERSONALCOMPUTER OPERATING SYSTEMS THE SOFTWARE THAT CONTROLS THE BASIC WORKINGS OF A MACHINE MICROSOFT SAYS IT HAS SOLD MORE THAN THREE MILLION COPIES SINCE INTRODUCING DOS 60 IN MARCH AND COMPUTER RETAILERS SUCH AS MICROAGE INC REPORT STRONG SALES BUT ONE OF THE PROGRAM'S BIGGEST ATTRACTIONS A NEW COMPRESSION FEATURE CALLED DOUBLESPACE THAT ALLOWS USERS TO STORE TWICE AS MUCH COMPUTER DATA ON THEIR HARD DRIVES IS BEGINNING TO LOOK A LITTLE LIKE A LIABILITY EARLY THIS MONTH THE TRADE PUBLICATION INFOWORLD CRITICIZED DOS 60 AS HAVING A LOT OF BUGS INCLUDING A TENDENCY OF THE COMPRESSION FEATURE TO MAKE A COMPUTER RUN ERRATICALLY THIS WEEK INFOWORLD BACKED DOWN A BIT SAYING THAT THE PROGRAM WAS EXONERATED IN ALL BUT SIX OF THE PROBLEMS IT REPORTED IN 53 MACHINES STILL IT CONCLUDES THAT DOUBLESPACE IS CAUSING SIGNIFICANT PROBLEMS IN A WIDE VARIETY OF DOS MACHINES AT COMPUTER CORNER OF FREDERICKSBURG VA OWNER JAMES THOMAS BEGAN TELLING CUSTOMERS TO AVOID USING DOUBLESPACE AFTER IT RAN INTO PROBLEMS ON FIVE OF HIS INHOUSE MACHINES IN ADDITION HE SAYS EIGHT CUSTOMERS' MACHINES RUNNING DOUBLESPACE NEEDED EMERGENCY REPAIRS TO THE SOFTWARE AFTER THE MACHINES STOPPED WORKING PROPERLY SOME DEALERS AFTER HEARING SIMILAR STORIES GO A STEP FURTHER WARNING PC USERS AWAY AS WELL FROM COMPETING COMPRESSION PROGRAMS STACKER FROM STAC ELECTRONICS OF CARLSBAD CALIF AND SUPERSTORE FROM ADDSTORE INC OF MENLO PARK CALIF I DON'T RECOMMEND USE OF ANY COMPRESSION UTILITYSTACKER SUPERSTORE OR DOUBLESPACE SAYS A TECHNICIAN AT THE COMPUSA STORE NEAR SAN FRANCISCO TOO MANY COMPUTERS HAVE COME IN FOR REPAIR AFTER CUSTOMERS TRIED TO LOAD COMPRESSION PROGRAMS HE SAID STAC WHICH HAS BEEN SELLING COMPRESSION SOFTWARE FOR YEARS YESTERDAY RELEASED A NEW VERSION OF ITS SOFTWARE THAT IT SAYS CORRECTS CERTAIN DEFICIENCIES IN DOS 60 JOHN BROMHEAD STAC ELECTRONICS'S DIRECTOR OF MARKETING SAYS STAC'S SALES FELL OFF SOON AFTER THE RELEASE OF DOS 60 BUT HAVE REBOUNDED AS PEOPLE BECOME DISSATISFIED WITH DOS 60'S COMPRESSION FEATURE MICROSOFT FOR ITS PART MAINTAINS THERE ARE NO MAJOR BUGS IN DOS 60 AND THAT CUSTOMERS HAVEN'T HAD ANY MORE PROBLEMS THAN NORMAL THE COMPANY IS GETTING FEWER CALLS FOR HELP ON THE PROGRAM THAN WITH ANY OTHER OF ITS TOP10 SELLING PROGRAMS SAYS BRAD CHASE MICROSOFT PRODUCT MANAGER IN CHARGE OF MSDOS THE BIGGEST GLITCH HE SAYS IS THAT DOS 60 SALES ARE SO MUCH STRONGER THAN ANTICIPATED THAT THE COMPANY DOESN'T HAVE ENOUGH TECHNICAL SUPPORT STAFF TO HELP USERS THROUGH PROBLEMS OVER THE PHONE MR CHASE SAID THAT MICROSOFT'S SURVEYS SHOW THAT USERS ARE EXTREMELY SATISFIED IF THERE WERE REALLY THIS MANY PROBLEMS THE PRODUCT WOULD HAVE STOPPED SELLING A LONG TIME AGO MR CHASE AND OTHER MICROSOFT OFFICIALS CONCEDE HOWEVER THAT THE PROBLEM MAY BE THAT THE SOFTWARE TRIGGERS GLITCHES WHEN A PC ISN'T COMPLETELY UP TO PAR SUCH AS WHEN A MACHINE'S HARD DRIVE HAS HIDDEN FLAWS OR SOME SOFTWARE ALREADY ON THE MACHINE HAS A BUG WE'RE ARGUING ABOUT THAT NOW HE SAYS IT IS POSSIBLE THERE MIGHT BE ADDITIONAL RISK ADDS A MICROSOFT SPOKESWOMAN IT'S LIKE THE GUY WHO'S IN BAD SHAPE AND IT SNOWS AND HE GOES OUT AND HAS A HEART ATTACK SHOVELING YOU DON'T GO AND BLAME THE SNOW SHOVEL KEVIN SANDLER WHO OVERSEES SOFTWARE SALES AT MICROAGE THE FRANCHISER OF COMPUTER STORES SAYS THAT DOS 60 SALES ARE DOING EXTREMELY WELL AND THAT HE IS CONFIDENT THAT MICROSOFT IS NOT GOING TO PUT A PRODUCT ON THE STREET THAT HAS MORE BUGS THAN THE OTHERS NONETHELESS HE WARNS USING COMPRESSION TECHNOLOGY IN GENERAL IN SOME CIRCUMSTANCES IS A DICEY THING FOR THE AVERAGE PC USER IF YOU DON'T KNOW YOUR WAY AROUND THE SYSTEM YOU'D BETTER HAVE SOMEONE AROUND WHO CAN HELP YOU 9305110026 930511 WHO'S NEWS PFIZER'S KATEN TO HEAD SALES MARKETING UNITS OF US DRUG GROUP NEW YORK PFIZER INC NAMED KAREN KATEN EXECUTIVE VICE PRESIDENT OF ITS US PHARMACEUTICALS GROUP MS KATEN 44 YEARS OLD WILL BE RESPONSIBLE FOR THE DIVERSIFIED HEALTHCARE COMPANY'S SALES AND MARKETING DIVISIONS WHICH INCLUDE ROERIG PFIZER LABS AND PRATT PHARMACEUTICALS AND THE NATIONAL HEALTHCARE OPERATIONS SHE WILL REPORT DIRECTLY TO EDWARD BESSEY VICE CHAIRMAN OF PFIZER AND PRESIDENT OF THE PHARMACEUTICALS GROUP MS KATEN JOINED PFIZER IN 1974 AS A MANAGEMENT ASSOCIATE AFTER A STINT AT THE COMPANY'S ROERIG PRODUCT MANAGEMENT GROUP SHE BECAME A GROUP PRODUCT MANAGER IN PFIZER LABS IN 1980 SHE THEN RETURNED TO ROERIG WHERE SHE BECAME VICE PRESIDENT/GENERAL MANAGER IN 1991 SHE WAS ELECTED AN OFFICER OF PFIZER LAST YEAR PATRICIA PADGETT LEA ANALYST AT VECTOR SECURITIES INC IN CHICAGO SAID MS KATEN IS CONSIDERED ONE OF THE BEST STRATEGISTS IN PHARMACEUTICALS MARKETING SHE ADDED THAT MS KATEN'S APPOINTMENT ARMS PFIZER WITH THE ABILITY TO DEAL CREATIVELY WITH THE UNCERTAINTIES OF THE DRUG MARKET BROUGHT ON BY QUESTIONS ABOUT PRICING OF DRUGS AND PROPOSALS FOR INDUSTRYWIDE REFORM 9305110025 930511 CREDIT RATINGS UNISYS CORP MOODY'S INVESTORS SERVICE INC UPGRADED ITS RATINGS ON ABOUT 28 BILLION IN UNISYS SECURITIES INCLUDING RAISING SENIOR DEBT TO BA3 FROM SINGLEB1 THE RATING AGENCY SAID THE MOVE REFLECTS ITS EXPECTATION THAT UNISYS WILL CONTINUE TO STRENGTHEN ITS FINANCIAL PROFILE AND IMPROVE OPERATING PERFORMANCE THROUGH DEBT REDUCTION AND EXPENSE CONTROLS THE REPORT CAUTIONED THAT UNISYS'S PROPRIETARY MAINFRAME COMPUTER BUSINESS IS MATURE AND THE INDUSTRY IS CURRENTLY HURT BY OVERCAPACITY MOREOVER THE COMPANY FACES COMPETITIVE PRESSURES IN THE COMPUTER SERVICE AND SOFTWARE BUSINESSES UNISYS CORP BLUE BELL PA IS AN INFORMATION SYSTEMS AND SOFTWARE COMPANY 9305110024 930511 MARKETSCAN PUTTING IT MILDLY MORE CONSUMERS PREFER ONLY PRODUCTS THAT ARE PURE' NATURAL' BY KATHLEEN DEVENY CHRYSTIE MOODY HATES CHEMICALS A 38YEAROLD ATLANTA MOTHER OF THREE MRS MOODY BRUSHES HER TEETH WITH FLUORIDEFREE TOOTHPASTE GIVES HER CHILDREN FLUORIDEFREE WATER WASHES HER HAIR WITH NOTHING OTHER THAN GENTLE ALOE VERA SHAMPOO AND HAS ENCOURAGED HER FAMILY TO STOP DRINKING MILK BECAUSE OF CHEMICAL ADDITIVES I'M CONCERNED THAT MY FAMILY LIMIT EXPOSURE TO CHEMICALS TO THE BEST OF OUR ABILITY SHE SAYS INDOOR POLLUTION IS PROBABLY MORE OF A THREAT THAN OUTDOOR SOME CONSUMERBEHAVIOR EXPERTS SEE MRS MOODY'S ATTITUDE NOT AS UNUSUAL OR ISOLATED BUT AS PART OF A GROWING DETOX MOVEMENT BOMBARDED WITH NEWS ACCOUNTS OF EVERYTHING FROM CANCERCAUSING ELECTROMAGNETIC FIELDS TO DANGEROUS FUMES WAFTING UP FROM NEW CARPETING PEOPLE ARE TRYING TO PROTECT THEMSELVES SAYS JOANN ROBOTTI A VICE PRESIDENT AT BRAINRESERVE INC A NEW YORK CONSULTING FIRM BECAUSE THE OUTSIDE WORLD SEEMS MORE DANGEROUS WE'RE TRYING TO MAKE OUR HOME ENVIRONMENT MORE CLEAN AND PURE MS ROBOTTI SAYS THIS IS A MOVEMENT DRIVEN BY FEAR THE TREND REPRESENTS A SIGNIFICANT SHIFT IN CONSUMER BEHAVIOR FOR YEARS CONSUMERS WERE MOTIVATED MAINLY BY MANUFACTURERS' CLAIMS OF CONVENIENCE PERFORMANCE OR PRESTIGE NOW MANY PEOPLE ARE AVOIDING PRODUCTS THAT CONTAIN HARSH OR UNNECESSARY CHEMICALS ESPECIALLY IN THEIR HOMES MAINSTREAM SHOPPERS ARE SEEKING SUCH PRODUCTS AS TOOTHPASTE WITHOUT SACCHARINE ALCOHOLFREE MOUTHWASH OR DEODORANT MADE FROM A MINERALSALT ROCK THE GROWING ALLURE OF PURE PRODUCTS IS PAYING OFF FOR MARKETERS SALES OF TOM'S OF MAINE NATURAL TOOTHPASTE IN SUPERMARKETS AND DRUGSTORES SOARED 55 TO 121 MILLION DURING THE 12 MONTHS ENDED FEB 28 ACCORDING TO THE TOWNEOLLER UNIT OF INFORMATION RESOURCES INC SALES OF THE NATURISTICS LINE OF BATH PRODUCTS SUCH AS A PINEAPPLE FACIAL SCRUB BAR MORE THAN DOUBLED TO 19 MILLION AND SINCE IT LAUNCHED ITS PURE COTTON LINE LAST AUGUST JOHNSON & JOHNSON HAS TRANSFORMED LOWLY COTTON BALLS AND SWABS INTO ONE OF THE FASTEST GROWING HEALTH AND BEAUTYCARE CATEGORIES TODAY OTHER MAKERS OF PERSONALCARE PRODUCTS ARE RACING TO ACCOMMODATE THE FEARFUL WITH HUNDREDS OF NEW ITEMS THAT PROMISE TO HELP THEM DODGE UNWANTED INGREDIENTS LAST YEAR MARKETERS INTRODUCED 575 NEW HEALTH AND BEAUTYCARE ITEMS THAT USED AS A SELLING POINT THE ABSENCE OF SUCH INGREDIENTS AS ARTIFICIAL PRESERVATIVES ARTIFICIAL COLORS OR SUGAR ACCORDING TO MARKETING INTELLIGENCE SERVICE LTD A NEWPRODUCT INFORMATION FIRM IN NAPLES NY THAT REPRESENTS A 44 INCREASE OVER THE PRIOR YEAR THE NEWPRODUCT PARADE CONTINUES DENMAT CORP THE SANTA MARIA CALIF MAKER OF REMBRANDT WHITENING TOOTHPASTE RECENTLY LAUNCHED AN ALCOHOLFREE MOUTHWASH AND IS CURRENTLY ROLLING OUT A NATURAL TOOTHPASTE WHICH THE COMPANY SAYS CONTAINS NO ARTIFICIAL COLORS OR PRESERVATIVES AND GETS ITS FLAVOR FROM AN INGREDIENT DERIVED FROM BIRCH TREES SAYS BARBARA RAGON MARKETING DIRECTOR AT DENMAT PEOPLE ARE SCRUTINIZING ALL PRODUCTS THEY BUY INDEED CONSUMERS' DESIRE FOR BETTER LIVING WITHOUT CHEMICALS IS RIPPLING THROUGH MANY PRODUCT AREAS IN ADDITION TO BUYING NATURAL BEAUTY AIDS MORE PEOPLE ARE DRINKING BOTTLED WATER AND NIBBLING ON ORGANIC PRODUCE SOME ARE NOW TIDYING UP THEIR HOMES WITH SUCH PRODUCTS AS SIMPLE GREEN A BIODEGRADABLE CLEANER SOLD BY SUNSHINE MAKERS INC OTHERS ARE SNOOZING ON FIELDCREST CANNON INC'S NEW WORLD COTTON LINE OF NATURAL BROWN SHEETS OR PULLING ON TSHIRTS MADE FROM ORGANICALLY GROWN COTTON MARKETED BY THE O WEAR UNIT OF VF CORP BUT SOME NATURAL PRODUCTS ARE MORE HYPE THAN SUBSTANCE TO CAPITALIZE ON CONSUMERS' PARANOIA SOME MARKETERS HAVE BEEN MERELY DRESSING UP EXISTING PRODUCTS IN GREEN CLOTHING JOHNSON & JOHNSON FOR EXAMPLE ADVERTISES ITS NEW PURE COTTON LINE AS BEING MADE WITHOUT CHEAPER RAYON FIBERS AND WHITENED WITHOUT HARSH CHLORINE BUT THE COTTON SWABS ROUNDS SQUARES AND BALLS ARE REALLY JUST REPACKAGED VERSIONS OF THE SAME OLD COTTON ITEMS THE COMPANY ALWAYS SOLD THE DIFFERENCE PURE COTTON PRODUCTS WHICH ARE MEANT FOR COSMETIC USES AREN'T STERILIZED OTHER PRODUCTS ACTUALLY DO CONTAIN ARTIFICIAL INGREDIENTS OR CHEMICALS NEVER MIND THAT THEY ARE PITCHED AS ALLNATURAL NEUTROGENA CORP CALLS ITS NEW SUNSCREEN CHEMICAL FREE SUNBLOCKER BUT THE PRODUCT WORKS BECAUSE MICRONIZED TITANIUM DIOXIDE A CHEMICAL BLOCKS THE SUN'S RAYS EVERYTHING CONTAINS CHEMICALS SAYS WARREN SHAPIRO SENIOR VICE PRESIDENT OF RESEARCH AND DEVELOPMENT AT NEUTROGENA THIS PRODUCT CAN BE CALLED CHEMICAL FREE HE SAYS BECAUSE IT DOES NOT WORK THROUGH A CHEMICAL REACTION SIMILARLY ADS FOR DEL LABORATORIES INC'S NATURISTICS LINE OF WOMEN'S TOILETRIES TOUT THE PRODUCTS AS CREATED WITH NATURAL INGREDIENTS AND NOT TESTED ON ANIMALS BUT WHILE THE PRODUCTS DO INCLUDE SUCH EARTHY INGREDIENTS AS JUNIPER AND SEA KELP THEY ALSO CONTAIN ARTIFICIAL COLORS AND PRESERVATIVES THE SMALL COMPANY IN FARMINGDALE NY MAINTAINS THAT SOME PRESERVATIVES ARE NECESSARY IT ALSO SAYS USING SOME CHEAPER SYNTHETIC INGREDIENTS KEEPS PRICES MORE COMPETITIVE WE TRY TO MAKE THESE PRODUCTS AS NATURAL AS POSSIBLE SAYS WILLIAM MCMENEMY GROUP VICE PRESIDENT OF MARKETING FOR DEL COSMETICS AND TOILETRIES CONSUMERS WANT PRODUCTS WITH NATURAL INGREDIENTS BUT THEY DON'T WANT TO GIVE UP ANYTHING DESPITE THE INTENTIONAL AMBIGUITY OF SOME PRODUCT CLAIMS MARKETERS HAVE STRUCK A CHORD WITH CONSUMERS MARILYN DUNN A 49YEAROLD OCCUPATIONAL THERAPIST IN HAYDEN LAKE IDAHO BEGAN USING NATURAL DEODORANT MADE BY TOM'S OF MAINE A FEW YEARS AGO BECAUSE SHE OBJECTED TO THE FRAGRANCES IN MANY TRADITIONAL PRODUCTS SINCE THEN SHE HAS STARTED USING OTHER NATURAL PRODUCTS INCLUDING TOM'S TOOTHPASTE I HAVE LOTS OF ALLERGIES SO I'M VERY CAREFUL ABOUT WHAT I KEEP IN MY HOME AND WHAT I INGEST SHE SAYS AS I'VE GOTTEN OLDER I'VE GOTTEN EVEN MORE CAREFUL THE DEMAND FOR NATURAL GOODS CUTS ACROSS AGE GROUPS WHEN VF'S O WEAR UNIT BEGAN SELLING ORGANICALLY GROWN CHEMICALFREE COTTON CLOTHES THROUGH DEPARTMENT STORES AND SPECIALTYCLOTHING BOUTIQUES THE COMPANY EXPECTED ITS CLIENTELE TO BE PRIMARILY A COLLEGE CROWD INSTEAD THE COMPANY FOUND ITS AVERAGE CUSTOMER IS 35 TO 45 YEARS OLD PEOPLE ARE COMING OFF THE 1980S AND THERE'S A BACKLASH SAYS ANDY BAKER NATIONAL MARKETING MANAGER FOR O WEAR CONSUMERS WANT TO BE AFFILIATED WITH PRODUCTS THEY CAN BELIEVE IN KATHERINE TIDDENS OWNER OF TERRA VERDE AN ECOLOGICAL STORE IN NEW YORK'S TRENDY SOHO AREA SAYS HARRIED SHOPPERS FIND THE BACKTOBASICS SPIRIT OF NATURAL PRODUCTS APPEALING MS TIDDENS WHO STOCKS SUCH ITEMS AS ECOVER A LINE OF BIODEGRADABLE HOUSEHOLDCLEANING PRODUCTS AND BODY CRYSTAL OF CALIFORNIA DEODORANT ROCKS SAYS SHE SEES SEVERAL TYPES OF CONSUMERS SOME MERELY LIKE THE LOOK OF THE UNBLEACHED COTTON TOWELS OR THE MUTED COLORS OF THE NONTOXIC PAINTS SHE SELLS MANY OTHERS HOWEVER BELIEVE THEY HAVE ALLERGIC REACTIONS TO CHEMICALS AND COME SEEKING RELIEF I TELL PEOPLE TO TRY TO ELIMINATE THE OBVIOUS THINGS IN THEIR LIVES THAT ARE TOXIC MS TIDDENS SAYS MAYBE THEY LOVE NAIL POLISH AND WON'T GIVE IT UP EVEN THOUGH IT'S TOXIC SO WHAT ABOUT BUYING UNBLEACHED TOILET PAPER STILL IT REMAINS TO BE SEEN WHETHER CONSUMERS' NATURAL URGES ARE A LONGTERM TREND OR MERELY A FAD PROCTER & GAMBLE CO HAS BEEN SELLING UNSCENTED TIDE LAUNDRY DETERGENT SINCE 1984 AND INTRODUCED A FRAGRANCEFREE UNDYED VERSION OF ITS CHARMIN BATHROOM TISSUE IN 1986 WHILE PROCTER HAS CONTINUED TO INTRODUCE SIMILAR VERSIONS OF OTHER HOUSEHOLD PRODUCTS INCLUDING FRAGRANCEFREE DOWNY FABRIC SOFTENER A SPOKESWOMAN SAYS DEMAND FOR SUCH PRODUCTS REMAINS RELATIVELY SMALL MARKETERS OF THE MORE RECENT CROP OF NATURAL GOODS HOWEVER REMAIN UNDAUNTED SINCE DEL LABS INTRODUCED ITS NATURISTICS BRAND TWO YEARS AGO THE COMPANY HAS EXPANDED THE LINE TO MORE THAN 200 FROM 37 ITEMS DEL LABS SAYS IT ONLY MAKES SENSE THAT PRODUCTS THAT WERE FIRST POPULAR IN EUROPE AND LATER IN PRICEY SPECIALTY STORES IN THE US SUCH AS BODY SHOP WOULD FILTER DOWN TO THE MASS MARKET SAYS DENMAT'S MS RAGON OF THE ANTICHEMICALS TREND I DON'T SEE THIS AS A TEMPORARY THING BECAUSE I DON'T SEE THE ENVIRONMENT IMPROVING AND I DON'T SEE CONSUMERS DECREASING THEIR ENVIRONMENTAL AWARENESS SOME CONSUMERS ARE CUTTING BACK ON PRODUCTS THAT CONTAIN UNNECESSARY CHEMICALS AND MARKETERS ARE CASHING IN ON THE SENTIMENT WITH SUCH ITEMS AS JOHNSON'S PURE COTTON SWABS TOM'S OF MAINE NATURAL TOOTHPASTE NATURISTICS SHAMPOO AND REMBRANDT ALCOHOLFREE MOUTH RINSE 9305110023 930511 THREE LIBBEYOWENS AIDES SUSPENDED PENDING STUDY TOLEDO OHIO THREE SENIOR EXECUTIVES OF THE LIBBEYOWENSFORD CO UNIT OF PILKINGTON PLC WERE SUSPENDED PENDING AN INVESTIGATION OF CERTAIN ACTIVITIES A COMPANY SPOKESMAN SAID THE SPOKESMAN FOR THE GLASS MAKER WOULDN'T SPECIFY THE NATURE OF THE INVESTIGATION OR THE ACTIVITIES BEING EXAMINED LAST NIGHT TOLEDO TELEVISION STATIONS REPORTED THAT THE THREE EXECUTIVES WERE ESCORTED FROM LIBBEYOWENSFORD'S HEADQUARTERS YESTERDAY THE COMPANY SPOKESMAN WOULDN'T CONFIRM THAT THE THREE MEN WERE IDENTIFIED AS RONALD SKEDDLE PRESIDENT AND CHIEF EXECUTIVE OFFICER EDWARD BRYANT EXECUTIVE VICE PRESIDENT OF OPERATIONS AND DARRYL COSTIN EXECUTIVE VICE PRESIDENT OF TECHNOLOGY NONE OF THE THREE WERE AVAILABLE FOR COMMENT LIBBEYOWENSFORD IS A MAJOR SUPPLIER OF GLASS TO AUTOMOBILE MAKERS 9305110022 930511 CORRECTIONS & AMPLIFICATIONS AMERICAN TELEPHONE & TELEGRAPH CO TOOK A SPECIAL CHARGE AGAINST EARNINGS IN THE FIRST QUARTER FOR REFINANCING HIGHCOUPON DEBT THAT WAS REDEEMED IN THE SECOND QUARTER YESTERDAY'S CORPORATE FOCUS ARTICLE ON GTE CORP INCORRECTLY SAID THAT AT&T PLANNED TO TAKE THE CHARGE IN THE CURRENT QUARTER BRITISH PETROLEUM CO PROPOSED A FIRSTQUARTER DIVIDEND OF 21 PENCE US 33 CENTS A SHARE UNCHANGED FROM THE PAYOUT IN THE FOURTH QUARTER FRIDAY'S EDITION SAID THE DIVIDEND WAS HALVED BUT DIDN'T SPECIFY THAT THAT COMPARISON WAS WITH THE 42PENCEASHARE DIVIDEND IN THE 1992 FIRST QUARTER ALLAN D GILMOUR IS VICE CHAIRMAN OF FORD MOTOR CO AND WAS NAMED TO THE BOARD OF U S WEST INC YESTERDAY'S WHO'S NEWS COLUMN INCORRECTLY SAID MR GILMOUR IS VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF U S WEST 9305110021 930511 MESA AIR APRIL TRAFFIC SURGED FARMINGTON NM MESA AIRLINES SAID APRIL TRAFFIC MORE THAN TRIPLED TO 77 MILLION REVENUE PASSENGER MILES FROM 252 MILLION MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE FOR THE FIRST FOUR MONTHS OF THE YEAR THE AIRLINE SAID TRAFFIC NEARLY TRIPLED TO 3019 MILLION REVENUE PASSENGER MILES FROM 1011 MILLION MILES MESA'S APRIL LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE TO 483 FROM 398 A YEAR EARLIER IN THE FIRST FOUR MONTHS LOAD FACTOR ROSE TO 487 FROM 407 MESA ACQUIRED WESTAIR HOLDING INC LAST YEAR 9305110020 930511 BUSINESS BRIEF MCI COMMUNICATIONS CORP ORDERS VALUED AT 30 MILLION WON FROM US CONGRESS MCI COMMUNICATIONS CORP SAID IT WAS AWARDED TWO COMPETITIVE CONTRACTS FROM THE US CONGRESS ONE FOR VIRTUAL NETWORK PHONE SERVICE AND THE OTHER FOR NETWORK DATA SERVICES THE CONTRACTS ARE VALUED AT MORE THAN 30 MILLION THE THREEYEAR PHONE NETWORK CONTRACT IS THE SECOND FOR MCI WHICH ORIGINALLY WON THAT SERVICE CONTRACT IN 1989 THE DATA SERVICES CONTRACT IS FOR TWO YEARS THE VIRTUAL NETWORK SERVICE WILL BE USED IN MORE THAN 1500 CONGRESSIONAL HOME OFFICES AND LEGISLATIVE BRANCH OFFICES THE DATA SERVICES WILL PRIMARILY BE USED TO CONNECT TERMINALS IN HOME OFFICES OF MEMBERS OF CONGRESS WITH THEIR CAPITOL HILL OFFICES 9305110019 930511 REVIEW & OUTLOOK EDITORIAL BOSNIA NO LODESTAR AS WE WATCH BILL CLINTON WRITHING OVER BOSNIA OUR DOMINANT EMOTION IS SYMPATHY HE SAT DOWN AT THIS CHESS TABLE AFTER ALL WITH THE ENDGAME WELL UNDER WAY EVEN A DIPLOMATIC GRANDMASTER WOULD HAVE TO CHOOSE BETWEEN SOME DESPERATE PLOY AND ABJECT RESIGNATION IF THE COLD WAR IS TO BE FOLLOWED BY A MORE HOPEFUL ORDER THE AMERICAN SUPERPOWER HAS TO MASTER NEW OPENING AND MIDGAME TACTICS THE COLLAPSE OF SOVIET COMMUNISM LEFT OUR FOREIGN POLICY WITHOUT A LODESTAR THE HISTORIC CONTAINMENT POLICY MADE THE BALKANS AN EASY CALL SUPPORT TITO'S INDEPENDENCE FROM THE SOVIET UNION EVEN IF HE WAS HIMSELF A COMMUNIST BRUTE HOW ARE WE TO DEAL WITH THE BALKANS TODAY OUR NATIONAL INSTINCT SEEMS TO BE LINING UP AGAINST THE SIDE MOST SUCCESSFUL IN ITS ATROCITIES HOW MUCH IS THIS PRINCIPLE WORTH IN AMERICAN BLOOD AND TREASURE OR CAN RELIEF OF SARAJEVO BE PART OF SOMETHING MORE IMPORTANT AND LASTING IT IS NO SMALL QUESTION FOR BOSNIA IS A MODEL OF FUTURE CONFLICTS INDEED TODAY'S WORLD IS ALREADY FULL OF BOSNIAS ETHNIC CLEANSING HAS ALSO BEEN TAKING PLACE IN TAJIKISTAN SENDING REFUGEES POURING INTO OF ALL PLACES AFGHANISTAN ARMENIA HAS JUST CLEARED A SWATH OF LAND OF MUSLIMS TO LINK UP WITH CHRISTIANS IN NAGORNOKARABAKH WHILE ISOLATING THE MUSLIM ENCLAVE OF NAKHICHEVAN CAMBODIA SRI LANKA ANGOLA PERU HAITI RUWANDA SOUTH AFRICA INDIATHE WORLD IS FULL OF KILLING TO BE STOPPED HOW CAN WE DECIDE IN WHICH QUARRELS TO INTERVENE AND ON WHOSE SIDE IT WOULD BE NICE TO OPT OUT OF ALL SUCH NASTINESS BUT THE WORLD HAS GROWN TOO SMALL FOR TRADITIONAL ISOLATIONISM AMERICAN CITIZENS NOW CIRCLE THE GLOBE AT THE SPEED OF SOUND AND AMERICAN INTERESTS AT THE SPEED OF LIGHT AMERICAN POWER IS SUCH THAT EVEN INACTION BECOMES INTERVENTION THE FALL OF THE SOVIET UNION TESTIFIES TO THE IMPOSSIBILITY OF ISOLATION FROM THE CURRENTS OF THE GLOBAL VILLAGE BY THE SAME TOKEN THE WORLD HAS GROWN TOO SMALL FOR TRADITIONAL REALPOLITIK YES TANGIBLE NATIONAL INTEREST CAN MAKE QUESTIONS EASY AS WITH SADDAM HUSSEIN'S THREAT TO THE OIL PIPELINES OF THE WEST IN THE GULF WAR BUT IN AN AGE OF INSTANT COMMUNICATION THE CRIES OF HUMANITY WILL AND SHOULD BE HEARD EVEN THE REALPOLITIK BUSH ADMINISTRATION FELT THE NEED TO INTERVENE IN SOMALIA SIMPLY BECAUSE IT COULD AT REASONABLE COST AND EVEN ON A MATERIAL LEVEL THE US HAS A LARGE STAKE IN A PEACEFUL WORLD YET THE WORLD IS TOO LARGE FOR AMERICA TO SOLVE ALL THE PROBLEMS WE ADMIRE THE CONSISTENCY OF THE VIEW EXPRESSED ON OUR PAGES BY EUGENE ROSTOW APRIL 28 THAT THE US SHOULD INVADE BELGRADE AND SET THINGS STRAIGHT AT LEAST PROPONENTS OF THIS VIEW ARE REALISTIC ENOUGH TO POSIT MEANS SUFFICIENT TO ENDS ANOTHER MILITARILY SERIOUS OPTION WOULD BE TO RELIEVE THE BESIEGED MUSLIMS WITH US AIR POWER SUPPORTING TURKISH INFANTRY WHICH WOULD HAVE THE ADVANTAGE OF ANNOYING THE SERBS MASSIVELY RATHER THAN MARGINALLY BUT NEITHER AMERICANS NOR TURKS ARE LIKELY TO SUPPORT SERIOUS FIGHTING WITH NO IMMEDIATE INTEREST AT RISK AND IN ANY EVENT IF WE TAKE BELGRADE WHY NOT YEREVAN OR DUSHANBE THE WORLD IS ALSO MUCH TOO LARGE FOR MORAL POSTURING NO SMALL NUMBER OF THOSE URGING INTERVENTION IN BOSNIA WANT INTERVENTION BECAUSE IT WOULD MAKE THEM FEEL VIRTUOUS THE URGE IS TO PUNISH THE SERB BEAST THERE IS SOMETHING TO BE SAID FOR SIMPLY DESTROYING A LOT OF SERBIAN MILITARY HARDWARE BUT AIR POWER ALONE WILL NOT CHANGE MATTERS ON THE GROUND THE CURRENT SERBIAN LEADERS MIGHT ONLY TAKE AIR STRIKES AS A PRETEXT FOR EVEN MORE MASSIVE ETHNIC CLEANSING IN KOSOVO WOULD THE MORALISTS THEN INVADE AND AT WHAT COST IN AMERICAN LIVES IN ANY EVENT THERE ARE GOOD SERBS AND BAD MUSLIMS NOT TO MENTION CROATS AND THERE ARE INNOCENT CIVILIANS ON ALL SIDES AS A MILITARY EXERCISE WHAT THE SERBS HAVE DONE TO SARAJEVO THESE LAST MONTHS THE US AIR FORCE COULD DO TO BELGRADE IN A FEW DAYS BUT WHAT KIND OF NEW WORLD ORDER WOULD THIS HELP TO BUILD IN SORTING THROUGH THE WORLD'S QUARRELS IT SEEMS THAT THE TROOPS FOLLOW THE TELEVISION CAMERAS DELEGATING FOREIGN POLICY TO THE NEWS DIVISIONS IS NOT EXACTLY THE PATH TO COHERENCE ANOTHER CONSISTENCY EVEN MORE UNFORTUNATE FOR THE STRUCTURE OF PEACE IS THAT THE WORLD STANDS ASIDE AS CHRISTIANS DEFEAT MUSLIMS WE HAVE EVENHANDEDLY EMBARGOED WEAPONS TO BOSNIAN AND SERB PROVIDING DE FACTO MILITARY SUPERIORITY TO THE LATTER WE LISTENED TO STORIES OF STARVING ARMENIANS ONLY TO SEE THEM OVERRUN THE AZERIS IN A HIGHLY SUCCESSFUL OFFENSIVE WE CONSIDER THE DE FACTO PARTITION OF CYPRUS A PROBLEM THOUGH THE SAME RESULT IN THE BALKANS WOULD BE A MONUMENTAL ACHIEVEMENT THE COST OF THIS IS TO UNDERMINE THE MODERATE MUSLIMSTURKS EGYPTIANS PAKISTANIS INDONESIANS WHO PROVIDE EXTANT MODELS FOR POLITICAL EVOLUTION THE FINAL CONSISTENCY IS THAT IN THE END WE TEND TO DO TOO LITTLE RATHER THAN TOO MUCH WE STUCK TOO LONG WITH POLICY FOCUSED ON THE SOVIET UNION AND TOO LONG WITH POLICY FOCUSED ON A FICTIONAL YUGOSLAVIA WE ARE NOT VERY GOOD AT IDENTIFYING HELPING OUR FRIENDS AND POTENTIAL FRIENDS WHETHER THE LATE TURGUT OZAL IN TURKEY OR MILAN PANIC IN HIS ELECTION BID AGAINST SLOBODAN MILOSEVIC IN SERBIA OR PRESIDENT LEVON TERPETROSSIAN TRYING TO RESTRAIN THE DASHNAK EXTREMISTS FUNDED BY THE ARMENIAN DIASPORA WE DOUBT THAT BOSNIA WOULD BE SUCH A PROBLEM TODAY IF IN THE GULF WAR WE'D GONE TO BAGHDAD AND HELD AN ELECTION AND BACK WHEN IT WOULD HAVE BEEN EFFECTIVE THE BUSH ADMINISTRATION INVOKED REALPOLITIK TO REJECT PROPOSALS TO ALLOW AID TO THE BOSNIAN MUSLIMS ALL THIS BILL CLINTON INHERITED HE MAGNIFIED HIS OWN PROBLEMS WITH GAYS IN THE MILITARY AND BROKEN PROMISES BUT GIVEN THE OPTIONS HE WAS LEFT IT'S HARD TO SEE THAT HE'S MADE SERIOUS MISTAKES HE'S BOBBED AND WEAVED THREATENING AIR STRIKES AND MILITARY AID TO THE MUSLIMS HIS ANNOUNCED OBJECTIVE IS TO GET SERBS TO NEGOTIATE ON THE VANCEOWEN PLAN AN ETHNIC HODGEPODGE COOKED UP BY THANKLESS NEGOTIATORS WILLING TO PUT THE BEST FACE ON PROBLEMS NO ONE CAN SOLVE BUT SO FAR MR CLINTON HAS DONE NOTHING WHICH AT THIS STAGE IS PROBABLY JUST AS WELL THERE IS EVEN ONE OUTSIDE CHANCE HIS POLICY WILL MORE OR LESS SUCCEED TO WIT IF THE SERBS THINK THEY'VE WON AND WANT TO CONSOLIDATE THEIR GAINS WITH AN INTERNATIONAL IMPRIMATUR IN THIS CASE THOUGH THERE'S NO NEED FOR US PEACEKEEPING TROOPS STATIONED AS TARGETS FOR EXTREMISTS ON ANY SIDE AS IN LEBANON AND DO WE REALLY WANT TO REWARD MR MILOSEVIC'S ETHNIC CLEANSING BY ADMITTING HIM TO THE COMMUNITY OF CIVILIZED NATIONS IF ONLY HE STOPS THE ONE THING PRESIDENT CLINTON OUGHT TO DO WHICH OUGHT TO HAVE BEEN DONE LONG AGO IS TO GO TO WORK BRINGING THE FULL FORCE OF INSTANT COMMUNICATIONS TO BEAR IN BELGRADE MR MILOSEVIC TOTALLY DOMINATES THE COMMUNICATIONS MEDIA IN THE SERBIAN COUNTRYSIDE AND HAS TAUGHT THE SERBS TO THINK OF THEMSELVES AS VICTIMS RATHER THAN AGGRESSORS IF OVER TIME TRUTH CAN PENETRATE THE SOVIET UNION IT WILL PENETRATE SERBIA WE CAN HELP THIS HAPPEN SOONER RATHER THAN LATER THE OBJECTIVE IS NOT TO PUNISH THE SERBS BUT TO DIVORCE THEM FROM THEIR GOVERNMENT OBVIOUSLY THIS WILL NOT SOLVE THE PROBLEM OVERNIGHT IT WILL NOT SUCCOR THE MUSLIMS UNDER BOMBARDMENT BUT THEN NEITHER WILL THE REST OF THE OPTIONS BUT AT LEAST IT IS A START TOWARD THE POLICY THAT WE ALSO NEED IN YEREVAN DUSHANBE AND THE REST IT IS NOT AS IF DEMOCRATIC CAPITALISM IS IN RETREAT NATION AFTER NATION IS SIGNING UP OF ITS OWN PEOPLE'S FREE WILL WE NEED TO MAKE CLEAR THAT THIS COMMUNITY IS OPEN TO NATIONS THAT BEHAVE THEMSELVES AND THAT THOSE WHO PURSUE PETTY ETHNIC HATREDS WILL BE SHUNNED AND EXCLUDED OUR POLICY SHOULD BE TO BEAR THIS MESSAGE AROUND THE WORLD IN WORD AND DEED TO LEADERS AND PEOPLE ALIKE AND WITHIN EACH NATION TO DO WHAT WE CAN TO SUPPORT THOSE WHO SHARE OUR VISION HAVING FAILED TO FINISH SADDAM HUSSEIN FOR EXAMPLE WE COULD RECOGNIZE A DEMOCRATIC GOVERNMENT IN EXILE WE DO NOT PRETEND THIS WILL SOLVE THE PROBLEMS OF THE WORLD WE CERTAINLY DO NOT ABJURE THE USE OF MILITARY FORCE FOR SERIOUS MILITARY PURPOSES WE WILL CONTINUE TO OPPOSE TRADE EMBARGOES WHICH TEND TO HURT THE FORCES OF LIGHT RATHER THAN THOSE OF DARKNESS AS WELL AS HUMAN RIGHTS FADS SUCH AS PROMOTING GAY RIGHTS IN KABUL BUT WHILE THERE WILL BE MUCH FOLLY TO BE RESISTED IF THE AMERICAN NATION COULD PERSIST WITH CONTAINMENT FOR TWO GENERATIONS AND DESPITE TURMOIL ULTIMATELY SUCCEED SURELY IT CAN DEVISE A NEW FOREIGN POLICY LODESTAR FOR A WORLD DOMINATED BY THE INSTANT COMMUNICATIONS IT INVENTED IT IS THE ONLY WAY TO GIVE PRESIDENTS LIKE BILL CLINTON SOMETHING BETTER THAN FORLORN ENDGAMES 9305110018 930511 INTERNATIONAL MAJOR STOCK FLOTATION PLANNED FOR PUBLISHING UNITS OF FININVEST SPA BY MICHAEL C BERJMEIJER SPECIAL TO THE WALL STREET JOURNAL MILAN IN WHAT AMOUNTS TO A TURNABOUT IN SILVIO BERLUSCONI'S FINANCIAL STRATEGY THE ITALIAN MEDIA TYCOON IS PREPARING A MAJOR STOCK FLOTATION FOR HIS PUBLISHING INTERESTS PEOPLE FAMILIAR WITH THE PLANS SAY MR BERLUSCONI HAS SHIED AWAY FROM USING THE STOCK MARKET TO RAISE CAPITAL WITHIN HIS GIANT FININVEST SPA HOLDING COMPANY WHOSE INTERESTS INCLUDE TELEVISION AND MOVIE PRODUCTION RETAILING AND FINANCIAL SERVICES ONLY RETAILER STANDA SPA AND PUBLISHER ARNOLDO MONDADORI EDITORE SPA ARE QUOTED ON THE MILAN STOCK EXCHANGE BUT THE METEORIC GROWTH OF MR BERLUSCONI'S EMPIRE ALSO HAS LED TO A SURGE IN FININVEST'S DEBTS EXCEEDING THREE TRILLION LIRE 437 BILLION AT THE END OF 1992 AND RATHER THAN BEING CONTROLLED BY BANK CREDITORS MR BERLUSCONI RECKONS IT'S BETTER TO SHARE OWNERSHIP WITH INVESTORS PROVIDED THEY REMAIN MINORITY SHAREHOLDERS THE PLAN CALLS FOR THE SALE OF UP TO 49 OF ITS PUBLISHING INTERESTS WHICH HAD 1992 REVENUE OF NEARLY TWO TRILLION LIRE SAID ONE OF THE SOURCES SEEKING A MAJOR SHARE FLOTATION FOR ITS PUBLISHING INTERESTS LATER THIS YEAR IS LIKELY TO BE ONLY A FIRST STEP IN FININVEST'S PLANS FOR THE STOCK MARKET OFFICIALS ARE ALREADY STUDYING AN INITIAL PUBLIC SHARE OFFERING BY FININVEST'S THREE TV NETWORKS SOMETIME IN 1994 THE SOURCE SAID MR BERLUSCONI SAID OVER THE WEEKEND THAT FININVEST WAS CONSIDERING CREATING A POPULAR SHAREHOLDERS BASE FOR SOME COMPANIES BUT THAT MARKET REGULATIONS DIDN'T PERMIT HIM TO GIVE DETAILS FININVEST OFFICIALS ALSO DECLINED TO COMMENT ON REPORTS PUBLISHED IN THE ITALIAN PRESS HOWEVER THE PLAN IS LIKELY TO BE APPROVED AND ANNOUNCED THURSDAY WHEN SILVIO BERLUSCONI EDITORE SPA'S BOARD AND SHAREHOLDERS ARE SCHEDULED TO MEET SBE REPORTEDLY PLANS TO ARRANGE A SHARE ISSUE TO BE USED FOR A PUBLIC OFFER OF EXCHANGE AIMED AT MINORITY SHAREHOLDERS OF MONDADORI ABOUT 66 OF WHICH IS TRADED ON THE MILAN STOCK EXCHANGE THE REST IS HELD BY FININVEST SBE AND A PRIVATE INVESTOR AFTER THE SHARE EXCHANGE SBE WILL TAKE MONDADORI'S LISTING ON THE MILAN BOURSE AND FININVEST WILL MAKE A PUBLIC OFFERING OF SBE SHARES INCREASING SBE'S PUBLIC FLOAT TO 49 FININVEST HOPES TO RAISE AROUND 600 BILLION LIRE IN FRESH CASH WITH THE SECONDARY OFFERING PEOPLE CLOSE TO THE PLAN SAY 9305110016 930511 WHO'S NEWS MACROCHEM CORP MACROCHEM CORP LEXINGTON MASS RICHARD D GLASER CHIEF OPERATING OFFICER WAS NAMED A DIRECTOR OF THIS MAKER OF DRUG DELIVERY SYSTEMS EXPANDING THE BOARD TO FIVE 9305110015 930511 WHO'S NEWS O'CHARLEY'S INC O'CHARLEY'S INC NASHVILLE TENN GREGORY L BURNS 38 YEARS OLD PREVIOUSLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED PRESIDENT WITH RESPONSIBILITY FOR FINANCE AND ADMINISTRATION OF THIS RESTAURANT CHAIN CHARLES F MCWHORTER JR 39 PREVIOUSLY SENIOR VICE PRESIDENT WAS NAMED CHIEF OPERATING OFFICER WITH RESPONSIBILITY FOR OPERATIONS AND DEVELOPMENT THEY SUCCEED DAVID K WACHTEL JR 50 WHO IS LEAVING TO PURSUE OTHER BUSINESS INTERESTS BUT WILL CONTINUE AS CHAIRMAN AND WILL ALSO BE A CONSULTANT 9305110014 930511 INTERNATIONAL HAFNIA LOSES EFFORT FOR EXTENSION OF DEBT FILES FOR BANKRUPTCY SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM DANISH HAFNIA HOLDING AS INSOLVENT AND LARGELY DEFUNCT SAID ITS BOARD FILED A PETITION OF BANKRUPTCY WITH A DANISH COURT HAFNIA HOLDING FORMER PARENT COMPANY TO DENMARK'S SECONDLARGEST INSURER SUSPENDED PAYMENTS TO CREDITORS AUG 18 AND CAME UNDER ADMINISTRATION OF A COURTAPPOINTED COMMITTEE IN A NEWS RELEASE HAFNIA SAID THE COMMITTEE WOULD NOT EXTEND THE PERIOD DURING WHICH HAFNIA COULD DELAY MEETING OBLIGATIONS TO CREDITORS THE BOARD THEN DECIDED TO FILE FOR BANKRUPTCY IT SAID IN A MOVE TO AVOID FORMAL BANKRUPTCY AND KEEP HEALTHY CORE INSURANCE AND BANKING OPERATIONS AFLOAT HAFNIA HOLDING HAD SPUN OFF ASSETS AND SUBSIDIARIES INTO A NEW COMPANY ALL OPERATIVE UNITS WERE TRANSFERRED TO SEPARATE LEGAL ENTITIES OR SOLD OFF LEAVING THE PARENT COMPANY BURDENED WITH MASSIVE LIABILITIES THE ONLY FUNCTION OF THE OLD HAFNIA HOLDING THEN BECAME THE LIQUIDATION OF REMAINING ASSETS AND THE ORDERLY PHASING OUT OF THE GROUP THE BANKRUPTCY PETITION CONCERNS THE OLD PARENT COMPANY AND NOT THE NEW COMPANIES THAT WERE SPUN OFF FROM THE HAFNIA GROUP THE COMPANY RAN INTO TROUBLE WHEN IT ACQUIRED A 34 STAKE IN ARCHRIVAL BALTICA HOLDING AS OF DENMARK AND A 148 STAKE IN SWEDISH COUNTERPART SKANDIA GROUP FOERSAEKRINGS AB TOGETHER WITH NORWEGIAN INSURER UNI STOREBRAND AS HAFNIA WANTED TO BUILD A SCANDINAVIAN INSURANCE GROUP BIG ENOUGH TO COMPETE WITH GIANT EUROPEAN INSURERS BALTICA AND SKANDIA RESISTED THE HOSTILE TAKEOVER ATTEMPTS THE FINANCING COSTS THAT STEMMED FROM THE ACQUISITION BATTLES EVENTUALLY LEFT THREE GROUPS HAFNIA BALTICA AND UNI STOREBRAND INSOLVENT 9305110013 930511 BUSINESS BRIEF TUCSON ELECTRIC POSTS NARROWER NET LOSS FOR THE FIRST QUARTER TUCSON ARIZ TUCSON ELECTRIC POWER CO REPORTED A NARROWER NET LOSS OF 185 MILLION FOR THE FIRST QUARTER COMPARED WITH 382 MILLION A YEAR EARLIER AS ELECTRICITY SALES TO RETAIL AND WHOLESALE CUSTOMERS CLIMBED THE LOSS PER SHARE TOTALED 12 CENTS COMPARED WITH 154 TUCSON ELECTRIC ISSUED 135 MILLION NEW COMMON SHARES IN DECEMBER AS PART OF AN OVERALL REWORKING OF ITS DEBT THE DISTRIBUTION OF THE SHARES HAS GREATLY BOOSTED THE COMPANY'S STOCK OUTSTANDING TO 1604 MILLION SHARES OPERATING REVENUE IN THE LATEST QUARTER TOTALED 1444 MILLION AN 86 INCREASE FROM 1329 MILLION TUCSON ELECTRIC SAID ELECTRICAL SALES TO RETAIL CUSTOMERS CLIMBED 14 TO ABOUT 142 BILLION IN KILOWATTHOURS THE INCREASE WAS ACCOUNTED FOR BY A 21 BOOST IN THE AVERAGE NUMBER OF RETAIL CUSTOMERS THE COMPANY SAID WHOLESALE TRANSACTIONS WITH OTHER UTILITIES JUMPED 95 TO 8122 MILLION KILOWATTHOURS TUCSON ELECTRIC WHICH SERVES THE SOUTHERN PART OF ARIZONA ADDED THAT RESULTS IN ITS LATEST QUARTER WERE AIDED BY LOWER INTEREST EXPENSES FOR THE MOST RECENT 12 MONTHS THE UTILITY SAID NET LOSSES NARROWED TO 1034 MILLION OR 158 A SHARE FROM 4441 MILLION OR 1754 A SHARE A YEAR EARLIER TWELVEMONTH RESULTS INCLUDED 594 MILLION IN LOSSES FROM CONTINUING OPERATIONS AND 44 MILLION IN LOSSES RELATED TO DISPOSAL OF DISCONTINUED OPERATIONS WHILE THE YEAREARLIER FIGURE INCLUDED 4081 MILLION IN LOSSES FROM CONTINUING OPERATIONS AND 36 MILLION IN LOSSES RELATED TO THE DISPOSAL OF DISCONTINUED OPERATIONS OPERATING REVENUE CLIMBED 71 TO 639 MILLION FROM 5967 MILLION 9305110012 930511 JERSEY CITY ELECTION TO MEASURE SUPPORT FOR NOVEL DEBT PLAN MAYOR MAKES HIS PITCH FOR VOTES BY PROPOSING THE CITY SELL ITS TAX LIENS ON WALL STREET BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL IN JERSEY CITY NJ A DEADBEAT IN THE HAND IS WORTH DEBT ON WALL STREET THE FINANCIALLY STRAPPED CITY ON THE HUDSON RIVER JUST ACROSS FROM MANHATTAN HAS STATE APPROVAL AND IS WORKING UP A PROPOSAL TO INSTANTLY RAISE ABOUT 25 MILLION BY IN EFFECT SELLING A PORTFOLIO OF UNPAID PROPERTYTAX OBLIGATIONS THE TAX LIENS WILL BE USED TO SECURE DEBT SOLD BY INVESTMENT BANKERS PRIVATELY TO INVESTORS THE NOVEL SCHEME IS THE BRAINCHILD OF JERSEY CITY MAYOR BRET SCHUNDLER A FORMER SALOMON BROTHERS INC EXECUTIVE HE IS ON THE BALLOT TODAY WITH THE TAX SCHEME A CENTRAL PART OF HIS REELECTION CAMPAIGN SOME OBSERVERS THINK A SUCCESSFUL LAUNCHING OF THE PLAN COULD MAKE IT ATTRACTIVE TO OTHER LOCALITIES FACING LOW TAXCOLLECTION RATES ALTHOUGH CITIES PERIODICALLY HOLD AUCTIONS TO SELL INDIVIDUAL LIENS TO PRIVATE INVESTORS THIS APPEARS TO BE THE FIRST TIME THAT LIENS WILL BE CLUMPED TOGETHER AND SOLD TO A LARGE PRIVATE INVESTOR MAYOR SCHUNDLER COMPARES IT TO A FACTORING ARRANGEMENT IN WHICH A COMPANY SELLS ACCOUNTS RECEIVABLE TO A THIRD PARTY LIENS IN OUR INVENTORY HAVE ALL BEEN PUT UP FOR SALE IN THE PAST BUT HAVE NOT BEEN SOLD SAYS MICHAEL R COOK THE MAYOR'S CHIEF OF STAFF THE CHALLENGE WAS TO ATTRACT INSTITUTIONAL INVESTORS MR SCHUNDLER EXPECTS FIRST BOSTON CORP NEW YORK TO BE A MAJOR BIDDER FOR THE 50 MILLION LIEN PORTFOLIO IT IS PUTTING UP FOR SALE ALTHOUGH OTHERS MAY BID UNDER THE SCHEME A SPECIALPURPOSE CORPORATION FORMED BY FIRST BOSTON WOULD BUY THE LIENS FOR ABOUT 25 MILLION CASH AND ISSUE A SUBORDINATED NOTE FOR ABOUT 40 OF THE PORTFOLIO THE INVESTORS WOULD RECEIVE HEFTY INTEREST PAYMENTS AS HIGH AS 18 WHICH THE CITY CHARGES PROPERTY HOLDERS ON UNPAID TAX OBLIGATIONS THE SPECIALPURPOSE CORPORATION WOULD HIRE A COMPANY TO COLLECT THE UNPAID TAXES MR COOK SAYS WE'RE PRIVATIZING THE TAXCOLLECTION EFFORT HE EXPLAINS WE CAN GET 60 OF THE MONEY OWED TO US IN A FEW MONTHS JERSEY CITY OFFICIALS NOTE THAT HISTORICALLY FEWER THAN 1 OF TAX LIENS ARE ACTUALLY FORECLOSED AND THAT TAXPAYERS TEND TO PUT OFF PAYING ONLY BECAUSE THEY DON'T EXPECT THE CITY TO AGGRESSIVELY PURSUE THEM SINCE MR SCHUNDLER TOOK OFFICE LAST NOVEMBER IN A SPECIAL ELECTION THE PREVIOUS MAYOR WAS REMOVED FROM OFFICE THE CITY'S RATE OF TAX COLLECTION HAS RISEN TO MORE THAN 90 FROM ABOUT 78 THE CITY HAS ABOUT 75 MILLION IN UNCOLLECTED LIENS MOST CITIES DON'T HAVE HARDCORE DELINQUENCIES LIKE JERSEY CITY SAID PHILIP DEARBORN OF WASHINGTONBASED ADVISORY COMMISSION OF INTERGOVERNMENTAL RELATIONS HE NOTED HOWEVER THAT CITIES SUCH AS DETROIT AND DALLAS WHICH HAD 52 MILLION AND 30 MILLION RESPECTIVELY IN DELINQUENT PROPERTY TAXES MIGHT BENEFIT BY EMULATING THE JERSEY CITY PLAN THE PLAN BRIEFLY RAN INTO AN OBSTACLE WHEN NEW JERSEY'S GOV JIM FLORIO SOUGHT AND SECURED PROTECTION FOR RENTERS WHO MIGHT FACE EVICTION IF THEIR HOUSING PROPERTIES WERE FORECLOSED AND AT LEAST ONE OF MAYOR SCHUNDLER'S OPPONENTS HAS RAISED THE PROSPECT OF WIDESPREAD FORECLOSURES AND EVICTIONS MR COOK SAYS RECENT OPPOSITION TO THE MAYOR'S PLAN REFLECTED PREELECTION POLITICAL MANEUVERING RATHER THAN DIFFERENCES OVER HOW EFFECTIVE THE PLAN WOULD BE IN BOOSTING REVENUE AND LEADING TO LOWER PROPERTYTAX RATES IN THE FUTURE AND MAYOR SHUNDLER BELIEVES THE PLAN WILL BE IMPLEMENTED EVEN IF ONE OF HIS OPPONENTS WINS THE ELECTION WALL STREET HAS COME TO MAIN STREET IN JERSEY CITY HE SAYS 9305110011 930511 MARKETING & MEDIA MURDOCH'S ATTEMPT TO BUY POST LOSES INSIDE TRACK AT FCC WASHINGTON RUPERT MURDOCH'S REQUEST FOR A WAIVER FROM FEDERAL RULES THAT BAR HIM FROM OWNING BOTH THE NEW YORK POST AND A NEW YORK CITY TELEVISION STATION HAS BEEN TAKEN OFF THE FAST TRACK AFTER A WAVE OF OBJECTIONS THE FEDERAL COMMUNICATIONS COMMISSION IS CAREFULLY STUDYING BOTH SIDES OF WHAT INITIALLY APPEARED TO BE A FAIRLY ROUTINE MATTER MR MURDOCH'S NEWS CORP OWNED THE POST FROM 1976 TO 1988 WHEN IT WAS FORCED TO SELL THE NEWSPAPER TO COMPLY WITH FCC CROSSOWNERSHIP RULES AFTER ACQUIRING WNYWTV CHANNEL 5 IN NEW YORK THIS PAST MARCH 25 A FEDERAL BANKRUPTCY COURT JUDGE ACCEPTED A PLAN TO TRANSFER CONTROL OF THE POST TO MR MURDOCH FROM COURTDESIGNATED OWNER ABRAHAM HIRSCHFELD AT THE TIME FCC CHAIRMAN JAMES QUELLO INDICATED THE AGENCY WAS LIKELY TO APPROVE MR MURDOCH'S WAIVER REQUEST QUICKLY THIS HAS BECOME A CONTENTIOUS ISSUE MR QUELLO SAID IN AN INTERVIEW IT IS NOW ON A SLOWER TRACK BECAUSE WE MUST LISTEN TO ARGUMENTS ON ALL SIDES PRESERVING JOBS AT THE POST REMAINS A PRINCIPAL INTEREST HE SAID ADDING THAT THE AGENCY STILL PLANS TO MAKE ITS DECISION BEFORE THE POST'S JUNE 1 DEADLINE BUT IT'S UNCLEAR JUST HOW FIRM THAT DEADLINE IS A POINT RAISED BY ONE OF THE GROUPS THAT OBJECTED TO THE FCC'S GRANTING THE WAIVER THE COUNCIL FOR MEDIA DIVERSITY AN INFORMAL ASSOCIATION OF ORGANIZATIONS THAT INCLUDES THE NEW YORK CHAPTER OF THE NATIONAL HISPANIC MEDIA COALITION SAID THAT WHILE MR MURDOCH TOLD REGULATORS THE POST WOULD FOLD IF THE WAIVER WASN'T APPROVED BY JUNE 1 HE TOLD THE BANKRUPTCY COURT THE DEADLINE COULD BE EXTENDED BY 30 DAYS THE COUNCIL ARGUED THAT THE FCC SHOULD CONDUCT A FULLBLOWN INVESTIGATION INTO WHETHER MR MURDOCH IS EVEN QUALIFIED TO GET A WAIVER 9305110010 930511 MARKETING & MEDIA TIME WARNER SELECTS SCIENTIFICATLANTA INC AS CABLE BOX SUPPLIER ATLANTA TIME WARNER CABLE SAID IT SELECTED SCIENTIFICATLANTA INC TO SUPPLY A CABLE CONVERTER BOX WITH PERSONAL COMPUTING POWERS FOR THE TIME WARNER INC CABLE UNIT'S FIRST ELECTRONIC SUPERHIGHWAY IN ORLANDO LATE THIS YEAR TOSHIBA CORP WILL WORK JOINTLY WITH SCIENTIFICATLANTA TO DEVELOP THE TERMINAL TIME WARNER SAID TERMS WEREN'T DISCLOSED SCIENTIFICATLANTA WHICH HAS EXPERIENCE IN DESIGNING AND BUILDING CABLE CONVERTER BOXES WILL BUILD THE SETTOP BOX THE FIRST TO USE DIGITAL RATHER THAN ANALOG TECHNOLOGY FOR THE SOUPEDUP INTERACTIVE CABLE SYSTEM THE SYSTEM IS TO OFFER AN ARRAY OF SERVICES INCLUDING ONDEMAND MOVIES FULLMOTION VIDEO GAMES HOME SHOPPING DATA SERVICES ELECTRONIC PROGRAM GUIDES AND INTERACTIVE EDUCATIONAL SERVICES SCIENTIFICATLANTA WILL ALSO PROVIDE CERTAIN EQUIPMENT TO TIME WARNER FOR THE CABLE CENTRAL OFFICE THE CONTRACT GIVES SCIENTIFICATLANTA A FOOTHOLD IN THE INCIPIENT INTERACTIVE CABLE BUSINESS REVENUEWISE IT'S NOT GOING TO MAKE OR BREAK SCIENTIFICATLANTA SAID DANIELLE DANESE AN ANALYST WITH SALOMON BROTHERS IN NEW YORK THE IMPORTANCE IS IT'S A SHOWCASE ACCOUNT THE FIRST INTERACTIVE CABLE TV SYSTEM AND TIME WARNER WANTS TO DO OTHERS TIME WARNER HAD PREVIOUSLY CHOSEN SCIENTIFICATLANTA TO PROVIDE THE DISTRIBUTION AND FIBER OPTIC EQUIPMENT PORTION OF THE PROJECT WHICH WILL SERVE SOME 4000 CABLE CUSTOMERS' HOMES IN TWO NEIGHBORHOODS IN ORLANDO THE FIRST CITY IN WHICH IT IS TO BE ROLLED OUT IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY SCIENTIFICATLANTA SHARES ROSE 50 CENTS TO 26375 9305110009 930511 BUSINESS BRIEF PRUDENTIAL SECURITIES INC NASD SAYS FIRM PAID FINE OF 250000 IN SETTLEMENT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC SAID PRUDENTIAL SECURITIES INC PAID A 250000 FINE IN A DISCIPLINARY ACTION THE NASD THE SELFREGULATORY BODY FOR THE OVERTHECOUNTER SECURITIES MARKET SAID THE PENALTY INVOLVED ACTIVITIES IN PRUDENTIAL'S LITTLE ROCK ARK AND MEMPHIS TENN BRANCHES PRUDENTIAL DIDN'T ADMIT OR DENY ALLEGATIONS THE NASD SAID THE SECURITIES UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA FAILED TO SUPERVISE PROPERLY CERTAIN EMPLOYEES AT THE TWO BRANCHES IN THE LITTLE ROCK OFFICE NASD SAID CERTAIN EMPLOYEES PARTICIPATED IN AN UNSUITABLE LEVEL OF TRADING IN THE ACCOUNT OF AN INSTITUTIONAL PUBLIC CUSTOMER THE COMPANY CAME TO EVENTUAL SETTLEMENT WITH THE CLIENT FOR 700000 AND THE NASD SAID THE COMPANY FAILED TO SUPERVISE RECORD KEEPING IN LITTLE ROCK WHICH RESULTED IN EMPLOYEES IMPROPERLY RECEIVING COMMISSIONS THE NASD SAID INDIVIDUALS INVOLVED IN THE MATTER ARE THE SUBJECT OF SEPARATE DISCIPLINARY PROCEEDINGS 9305110008 930511 BUSINESS BRIEF KUHLMAN CORP RESTRUCTURING CHARGE ADDED TO 6 MILLION 1STPERIOD LOSS KUHLMAN CORP HIT BY A DROP IN SALES AND BY RESTRUCTURING AND ACCOUNTING CHARGES POSTED A FIRSTQUARTER LOSS OF 6 MILLION OR 102 A SHARE COMPARED WITH NET INCOME OF 23 MILLION OR 38 CENTS A SHARE IN 1992'S FIRST QUARTER THE LOSS REFLECTED PRETAX RESTRUCTURING CHARGES OF 87 MILLION STEMMING FROM ASSET WRITEOFFS AND A MARCH DECISION TO LAY OFF 54 SALARIED STAFFERS THE LEXINGTON KY COMPANY ALSO TOOK A CHARGE OF 13 MILLION OR 22 CENTS A SHARE TO REFLECT ADOPTION OF AN ACCOUNTING RULE REQUIRING ACCRUAL OF RETIREE HEALTH AND LIFE INSURANCE BENEFITS BEFORE THESE CHARGES THE MAKER OF ELECTRICAL TRANSFORMERS AND METAL COMPONENTS HAD PRETAX INCOME OF 1 MILLION DOWN 74 FROM 38 MILLION IN THE YEAREARLIER PERIOD KUHLMAN SAID SALES FOR THE QUARTER WERE 272 MILLION DOWN 18 FROM 33 MILLION A YEAR EARLIER THE COMPANY ATTRIBUTED THE DROP TO A WEAKENING ECONOMY 9305110007 930511 CLINTON IN TRIP TO CLEVELAND DEFENDS AGENDA PRESIDENT DERIDES CRITICS AS HE PRESSES FOR EACH OF A DOZEN INITIATIVES BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL CLEVELAND PRESIDENT CLINTON IN A CAMPAIGNSTYLE TRIP HERE TO REVIVE HIS FLAGGING SUPPORT DEFIANTLY DEFENDED HIS CROWDED AGENDA AND DERIDED AS PREACHERS OF PESSIMISM THOSE WHO SAY HE IS DOING TOO MUCH PRESIDENTIAL ADVISERS HAD BILLED THE VISIT THE FIRST STOP IN A THREEDAY EXCURSION OUTSIDE WASHINGTON AS MR CLINTON'S ATTEMPT TO REFOCUS HIS ATTENTION ON THE ECONOMY THE ISSUE ON WHICH HE HAD SAID HE WOULD CONCENTRATE LIKE A LASER BUT MR CLINTON POINTEDLY REFUSED TO CONFINE HIMSELF TO THAT SUBJECT INSTEAD HE PRESSED FORCEFULLY FOR EACH OF MORE THAN A DOZEN SEPARATE INITIATIVES RANGING FROM NATIONAL SERVICE TO WELFARE OVERHAUL TO CAMPAIGNFINANCE CHANGES AND TO INSIST THAT EACH WAS IMPORTANT AND SOMEHOW RELATED TO THE OTHERS WE ARE TRYING TO DO A LOT OF THINGS HE TOLD A GROUP IN A SHOPPING MALL HERE BUT THEY ALL RELATE TO RESTORING THE ECONOMIC VITALITY OF THIS COUNTRY IN RECENT WEEKS MR CLINTON HAS BEEN SHARPLY CRITICIZED BY SOME MEMBERS OF CONGRESS INCLUDING MEMBERS OF HIS OWN PARTY FOR PUSHING TOO MANY THINGS AT ONCE HIS OWN STAFF HAS IMPLORED HIM TO SLOW DOWN THE PACE OF MAKING NEW PROPOSALS AND TO SET PRIORITIES AMONG THOSE HE ALREADY HAS PUT FORWARD EVEN THE PRESIDENT HIMSELF HAS ACKNOWLEDGED THAT HE HAS HAD TROUBLE FOCUSING HIS MESSAGE YESTERDAY HOWEVER MR CLINTON TOOK A NEW TACK HE DECLARED THAT THE PROBLEM IS MORE WITH WASHINGTONBASED NAYSAYERS THAN WITH HIMSELF I'VE BEEN CRITICIZED FOR DOING MORE THAN ONE THING AT ONCE HE SAID BUT HE ADDED I THINK WE CAN IN FACT HE SAID HE BELIEVES HE SHOULD I THINK YOU WANT US TO BE BOLD AND I THINK YOU WANT US TO TRY TO TURN THIS COUNTRY AROUND HE SAID I THINK YOU'D RATHER SEE US ERR ON THE SIDE OF EFFORT THAN ON THE SIDE OF PRESERVING THE STATUS QUO TO THE EXTENT THAT MR CLINTON FOCUSED AT ALL IT WAS ON RHETORIC THAT ECHOED HIS MAIN CAMPAIGN THEME THE NEED FOR CHANGE HE DECLARED THAT A NEW DIRECTION FOR GOVERNMENT IS WHAT AMERICANS DESIRE AND THAT WASHINGTON INSIDERS PARTICULARLY LOBBYISTS ARE DETERMINED TO PREVENT THAT FROM HAPPENING FOR THEIR OWN BENEFIT LET'S GET EVERYBODY INVOLVED IN TAKING ON THE LOBBYISTS HE URGED THAT'S WHAT WE'RE TRYING TO DO HERE HE EVEN PAINTED THE NOTION OF FOCUSING ON JUST ONE ISSUE AT A TIME AS A PLOY THAT WOULD HELP THE SPECIAL INTERESTS A SINGLE ISSUE IS EASIER TO STOP THAN MANY HE SAID HIS ALLITERATIVE REJOINDER AGAINST PREACHERS OF PESSIMISM IN OUR NATION'S CAPITAL WHILE REMINISCENT OF SPIRO AGNEW'S DESCRIPTION OF THE PRESS AS NATTERING NABOBS OF NEGATIVISM ECHOES A THEME THAT IS HEARD OFTEN FROM POLITICIANS WHO RUN INTO OPPOSITION MR CLINTON'S TRIP HERE COMES AS CONGRESS BEGINS IN EARNEST TO DRAFT HIS ECONOMIC PACKAGE WHICH CONSISTS OF TAX INCREASES SPENDING CUTS AND SELECTED SPENDING INCREASES MR CLINTON WARNED THAT THE TASK WOULD BE TOUGH AND ASKED THE AUDIENCE TO HELP KEEP THE PLAN INTACT IF EVERYBODY GOES AROUND SAYING WHAT'S IN IT FOR ME INSTEAD OF WHAT'S IN IT FOR US THE THING WILL COME APART HE SAID HE ALSO INDICATED THAT HE WOULD PUT OFF PRESSING AGAIN FOR HIS ECONOMICSTIMULUS PACKAGE WHICH DIED AT THE HANDS OF SENATE REPUBLICANS UNTIL AFTER THE BIG BUDGET BILL IS COMPLETED PROBABLY LATER THIS SUMMER THE LATEST VERSION OF THE STIMULUS CIRCULATING IN THE WHITE HOUSE CALLS FOR ONLY ABOUT 4 BILLION IN SPENDING FAR LESS THAN MR CLINTON'S ORIGINAL PLAN WHITE HOUSE AIDES SAID THE FATE OF ANOTHER SPENDING BILL FOR AID TO RUSSIA WAS ALSO IN LIMBO BUT THAT DECISIONS ABOUT IT MIGHT COME LATER THIS WEEK 9305110006 930511 BUSINESS BRIEF DUN & BRADSTREET CORP NEW YORK CORPORATE STAFF WILL MOVE TO CONNECTICUT DUN & BRADSTREET CORP SAID IT PLANS TO MOVE MOST OF ITS CORPORATE HEADQUARTERS STAFF FROM NEW YORK TO WILTON CONN THE COMPANY SAID THE MOVE WILL BE CONDUCTED IN PHASES TO A FACILITY DUN & BRADSTREET ALREADY OWNS IN WILTON THE COMPANY EXPECTS THE MOVE WHICH WILL AFFECT 300 OF ITS 400 CORPORATE STAFFERS TO BE COMPLETED BY LATE 1994 THE BUSINESS INFORMATION SERVICES COMPANY SAID 10 DIVISIONS WITH A TOTAL OF 3000 EMPLOYEES WILL REMAIN IN NEW YORK WILTON IS LOCATED IN FAIRFIELD COUNTY HOME OF THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE CHARLES W MORITZ THE COMPANY SAID MR MORITZ'S RESIDENCE DIDN'T INFLUENCE THE DECISION TO MOVE CONNECTICUT OFFICIALS SAID THE MOVE IS TIED TO A 72 MILLION DIRECT FINANCIAL ASSISTANCE PACKAGE FROM THE STATE THE PACKAGE WILL BE ISSUED OVER 18 MONTHS THE FINANCING WILL INCLUDE GRANTS TO RENOVATE DUN & BRADSTREET'S FACILITY AND TRAIN EMPLOYEES HIRED IN CONNECTICUT THE STATE SAID THE MOVE WILL PROVIDE 320 NEW JOBS AND RETAIN 237 EXISTING JOBS AT A DUN & BRADSTREET UNIT ALREADY IN WILTON 9305110005 930511 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS MAY 1124 MORE THAN 240 PAINTINGS FROM MAJOR COLLECTIONS THROUGHOUT BRITAIN AND THE US ON VIEW ARE THE WORKS OF GAINSBOROUGH CONSTABLE BLAKE TURNER AND OTHERS WHOSE WATERCOLORS WERE OF IMPORTANCE TO THE DEVELOPMENT OF THE MEDIUM NATIONAL GALLERY OF ART FOURTH STREET AT CONSTITUTION AVENUE NW THROUGH JULY 25 202 7374215 THIS IS THE FIRST COMPREHENSIVE EXHIBITION OF POSTWORLD WAR II HUNGARIAN ART TO BE SHOWN IN THIS COUNTRY THE SHOW FEATURES SOME 45 PAINTINGS AND WAS PUT TOGETHER BY KRISZTINA JERGER CURATOR OF CONTEMPORARY ART EXHIBITIONS AT THE PALACE OF EXHIBITIONS IN HUNGARY IT IS DIVIDED INTO THREE PARTS THE OFFICIAL ART OF THE 1950S A PERIOD OF STRICT GOVERNMENT CONTROL THE ART OF THE '60S AND '70S WHEN SOME UNDERGROUND ART WAS TOLERATED AND THE ART OF THE '80S AND '90S A PERIOD OF ARTISTIC FREEDOM THE ENTIRE MUSEUM IS GIVEN OVER TO SITESPECIFIC WORKS PRIMARILY IN GLASS CREATED BY SIX PROMINENT ARTISTS IN THE MEDIUM MICHAEL ASCHENBRENNER BRUCE CHAO WILLIAM MORRIS MARY SHAFFER CARMEN SPERA AND STEVE TOBIN WHOSE 41FOOTHIGH GLASS WATERFALL CASCADES THROUGH THE MUSEUM'S STAIRWELL ATRIUM THIS EXHIBIT ROUNDS UP THE WORK OF CONTEMPORARY COWBOY PAINTERS SCULPTORS AND PHOTOGRAPHERS ALONGSIDE THAT OF TRADITIONAL COWBOY ARTISANS SUCH AS SADDLE MAKERS BIT AND SPUR MAKERS RAWHIDE AND HORSEHAIR BRAIDERS BOOTMAKERS AND HATMAKERS COCONINO CENTER FOR THE ARTS 2300 N FORT VALLEY ROAD HIGHWAY 180 THROUGH JUNE 13 602 7796921 ABOUT 125 OBJECTS FROM THE MUSEUM'S COLLECTION OF PHILIPPINE ART OFFER A PICTURE OF LIFE ON THE ISLANDS AT THE BEGINNING OF THIS CENTURY THEY INCLUDE CLOTHING TEXTILES INCLUDING A GROUP OF BURIAL SHROUDS JEWELRY AND HOUSEHOLD OBJECTS THE SUMMER SEASON OPENS WITH A PRODUCTION OF MASSENET'S CENDRILLON CODIRECTED BY COLIN GRAHAM AND NEIL PETER JAMPOLIS SUSAN ROSENBAUM SINGS THE TITLE ROLE AND MARY ANN MCCORMICK IS HER PRINCE MAY 21 27 29 JUNE 2 4 6 12 MATINEE 15 AND 19 ALSO ON THE SCHEDULE A NEW PRODUCTION OF MOZART'S DON GIOVANNI DIRECTED BY GILES HAVERGAL AND CONDUCTED BY STEPHEN LORD WITH SETS BY JOHN CONKLIN MAY 22 26 28 JUNE 3 8 13 AND 19 MATINEE THE WORLD PREMIERE OF DAVID CARLSON'S THE MIDNIGHT ANGEL A JOINT COMMISSION OF THE OPERA THEATRE GLIMMERGLASS OPERA AND THE SACRAMENTO OPERA JUNE 1 5 9 11 AND 17 AND BRITTEN'S BILLY BUDD DIRECTED BY COLIN GRAHAM CONDUCTED BY ROBERT SPANO AND DESIGNED BY DEREK MCLANE JUNE 10 12 16 18 AND 20 THE CHORUS AND ORCHESTRA CLOSE OUT THE SEASON WITH A PROGRAM OF MOZART'S OVERTURE TO THE MARRIAGE OF FIGARO MOZART'S PIANO CONCERTO IN D MINOR WITH SOLOIST GARRICK OHLSSON AND HAYDN'S MASS IN TIME OF WAR WITH SOLOISTS LINDA MABBS KAREN BRUNSSEN BRUCE FOWLER AND TIMOTHY NOBLE THOMAS WIKMAN CONDUCTS 9305110004 930511 BUSINESS BRIEF DAMON CORP FIRSTPERIOD PROFIT FELL 76 DESPITE 12 INCREASE IN SALES DAMON CORP CITING COMPETITIVE PRICING PRESSURES AND BAD WEATHER REPORTED THAT FIRSTQUARTER EARNINGS TUMBLED 76 DESPITE A 12 RISE IN SALES THE NEEDHAM MASS CLINICAL LABORATORY CONCERN EARNED 11 MILLION OR SEVEN CENTS A SHARE COMPARED WITH 46 MILLION OR 30 CENTS A SHARE A YEAR EARLIER SALES ROSE TO 835 MILLION FROM 743 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DAMON CLOSED AT 12125 UNCHANGED ANALYSTS HAD PEGGED DAMON'S FIRSTQUARTER EARNINGS AT BETWEEN 12 CENTS TO 15 CENTS A SHARE DAMON SAID SEVERE WEATHER IN FEBRUARY AND MARCH DRAGGED DOWN ITS FIRSTQUARTER OPERATING RESULTS BECAUSE OF LOST SALES DAYS IN NEARLY HALF OF ITS 13 REGIONAL LABORATORIES IT SAID EARNINGS ALSO WERE DEPRESSED BY COMPETITIVE PRICING CUSTOMER MIX CHANGES AND SLIGHTLY LOWER TEST UTILIZATION BY PHYSICIAN CUSTOMERS HOWEVER DAMON SAID IT ACCOMPLISHED ITS GOAL OF REVERSING A SHORTFALL IN NET NEW SALES PRODUCTION THAT WAS EXPERIENCED IN THE LATTER PART OF 1992 9305110003 930511 ABREAST OF THE MARKET STOCKS FALL FROM INTRADAY HIGHS TO FINISH THE DAY UP 609 POINTS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS GAVE UP MOST OF THEIR EARLY GAINS AS WORRIES ABOUT TODAY'S GOVERNMENT DEBT SALES TRIGGERED A LATE WAVE OF COMPUTERGUIDED SELL PROGRAMS AFTER RALLYING AS MUCH AS 30 POINTS INITIALLY THE DOW JONES INDUSTRIAL AVERAGE ENDED 609 POINTS HIGHER AT 344328 IN MODERATELY HEAVY TRADING THE STANDARD & POOR'S 500STOCK INDEX EDGED UP 049 TO 44280 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 035 TO 24503 ON THE BIG BOARD VOLUME TOTALED 224715810 SHARES UP SLIGHTLY FROM FRIDAY'S 223448910 SHARES ADVANCING ISSUES OUTNUMBERED DECLINERS 1075 TO 835 STOCKS STARTED RISING FROM THE OPENING BELL AND STRENGTHENED FOR MOST OF THE MORNING AS FALLING INTEREST RATES AND DIMINISHING CONCERNS ABOUT A US BOMBING MISSION OVER BOSNIA REVIVED INVESTORS' APPETITE FOR STOCKS THE CLINTON ADMINISTRATION SIGNALED YESTERDAY THAT IT WOULD WAIT UNTIL A WEEKEND REFERENDUM BY BOSNIAN SERBS ON A UNBACKED PEACE PLAN BEFORE MOVING CLOSER TOWARD MILITARY ACTION IN BOSNIA LAST WEEK CONCERNS ABOUT AN ALLIED AIR BLITZ OVER BOSNIA HAD HELD STOCKS BACK ANALYSTS SAID THE EARLY RALLY WAS MOSTLY DUE TO BUY PROGRAMS SAID JACK BAKER MANAGING DIRECTOR FOR STOCK TRADING AT FURMAN SELZ AND IN THE AFTERNOON THE BUYERS TURNED AROUND AND REVERSED THEMSELVES TIM LOVE SENIOR PORTFOLIO MANAGER AT MARINVEST ATTRIBUTED THE CHANGE IN SENTIMENT TO CONCERNS ABOUT TODAY'S GOVERNMENT DEBT REFUNDING THOUGH INTEREST RATES FELL YESTERDAY SOME STOCK INVESTORS FEARED THE DELUGE OF DEBT THAT IS SET TO HIT THE MARKET TODAY COULD SEND RATES SHOOTING BACK UP THE TREASURY IS SLATED TO SELL 16 BILLION OF NEW THREEYEAR NOTES TODAY AS THE FIRST LEG IN ITS THREEPART 35 BILLION FINANCING OPERATION WHILE STOCK PRICES ARE LIKELY TO BE SWAYED BY BONDS DURING THE NEXT FEW DAYS SOME ANALYSTS SAID THAT ONCE THE REFUNDING IS OVER STOCKS COULD BE POISED TO BREAK OUT TO NEW HIGHS LON GORMAN COMANAGER OF EQUITY TRADING AT FIRST BOSTON SAID THERE ARE THREE COMPELLING REASONS FOR THE MARKET TO MOVE HIGHER INTEREST RATES ARE LOW CASH LEVELS AT MUTUAL FUNDS ARE SURPRISINGLY LARGE AND PERHAPS MOST IMPORTANT SENTIMENT AMONG INVESTORS IS EXTREMELY BEARISH IF ALL THREE LEGS OF THE STOOL ARE INTACT AND NOT WOBBLY HERE THE MARKET HAS A REASON TO ADVANCE HE SAID SEVERAL HEALTHCARE STOCKS ADVANCED AS ALEX BROWN'S ANNUAL HEALTHCARE SEMINAR BEGAN IN BALTIMORE HAEMONETICS CLIMBED 1 1/8 TO 21 1/4 AND MEDTRONIC GAINED 1 3/4 TO 69 3/8 BOTH MEDICAL DEVICE MAKERS RECEIVED POSITIVE MENTIONS FROM ALEX BROWN ANALYST JONATHAN OSGOOD AMONG OTHER MEDICAL STOCKS MERCK ADDED 5/8 TO 37 3/4 UNITED HEALTHCARE JUMPED 2 1/2 TO 56 3/4 AND US SURGICAL ADVANCED 1 1/8 TO 37 1/2 PHILIP MORRIS ROSE 1 3/4 TO 52 3/4 IN HEAVY TRADING THE FOOD AND TOBACCO GIANT'S STOCK WAS BUOYED BY EXPECTATIONS THAT A CIGARETTE PRICE WAR WILL BE AVERTED RJR NABISCO WAS UNCHANGED AT 5 3/4 EASTMAN KODAK SOARED 1 1/8 TO 50 5/8 MERRILL LYNCH ANALYST ROBERT CURRAN RAISED HIS INTERMEDIATETERM RATING ON THE PHOTOGRAPHIC PRODUCTS GIANT TO ABOVE AVERAGE FROM NEUTRAL AND TRADERS SAY WERTHEIM SCHRODER ANALYST MICHAEL ELLMANN BOOSTED HIS RATING ON THE STOCK TO STRONG BUY FROM BUY MR ELLMANN COULDN'T BE REACHED TO COMMENT PARKER & PARSLEY PETROLEUM JUMPED 3 1/8 TO 24 7/8 THE OIL AND GAS EXPLORATION CONCERN ENTERED A DEFINITIVE AGREEMENT TO BUY ALL 35 OF PRUDENTIAL SECURITIES' TROUBLED ENERGY LIMITED PARTNERSHIPS IN AN OFFER VALUED AT 557 MILLION LIFETIME SURGED 2 7/8 TO 29 3/4 THE HOME HEALTHCARE SERVICES COMPANY SAID ITS BOARD ACCEPTED A DEFINITIVE MERGER OFFER FROM OLSTEN A TEMPORARY HELP CONCERN THE STOCK TRANSACTION IS VALUED AT ABOUT 448 MILLION OLSTEN SLIPPED 1/8 TO 27 XYTRONYX SLUMPED 1 TO 6 1/2 ON THE AMERICAN STOCK EXCHANGE THE FOOD AND DRUG ADMINISTRATION REQUESTED ADDITIONAL CLINICAL STUDIES AND OTHER DATA BEFORE APPROVING THE PERIOGARD PERIDONTAL TISSUE MONITOR KIT RAMSAYHMO SLID 1 3/4 TO 29 SMITH BARNEY LOWERED ITS INVESTMENT RATING ON THE MEDICAL SERVICE CENTER STOCK TO HOLD FROM BUY NEWMONT MINING HOWEVER FELL 1 1/8 TO 47 7/8 TRADERS CITED RUMORS THAT A LARGE BLOCK OF THE DENVER MINING COMPANY'S STOCK WAS BEING OFFERED FOR SALE TO OVERSEAS INVESTORS A SPOKESWOMAN FOR THE COMPANY WOULDN'T COMMENT ON THE TALK BUT TRADERS SAID THAT THE SELLER IS SIR JAMES GOLDSMITH THE ANGLOFRENCH BILLIONAIRE FINANCIER LATE LAST MONTH NEWMONT MINING'S STOCK SHOT UP ON NEWS THAT SIR JAMES SOLD MORE THAN 300 MILLION OF NEWMONT STOCK REPRESENTING A 10 STAKE TO SEVERAL OFFSHORE FUNDS MANAGED BY GEORGE SOROS MR GOLDSMITH COULDN'T BE REACHED THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 063 TO 42669 THERE WERE 283 ADVANCERS AND 278 DECLINERS DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9305110002 930511 TECHNOLOGY CREATIVE TECHNOLOGY TO FEATURE SPEECH RECOGNITION DEVICE CAMBRIDGE MASS MORE PEOPLE MAY BE ABLE TO TALK TO THEIR COMPUTERS FOLLOWING A DECISION BY THE BIGGEST MAKER OF SOUND BOARDS TO ADD SPEECH RECOGNITION CREATIVE TECHNOLOGY LTD SINGAPORE WHICH MAKES THE POPULAR SOUND BLASTER AUDIO BOARD THAT LETS IBMCOMPATIBLE COMPUTERS MAKE HIGHQUALITY SOUNDS SAID IT WILL MAKE VOICE RECOGNITION A STANDARD FEATURE ON ITS 279 SOUND BLASTER 16 BOARD CREATIVE IS USING TECHNOLOGY FROM CLOSELY HELD VOICE PROCESSING CORP BASED HERE THAT WILL LET A COMPUTER RECOGNIZE UP TO 1000 WORDS ONCE A USER HAS TRAINED IT BY SAYING EACH WORD ONCE WHILE OTHER SOUND BOARDS HAVE VOICERECOGNITION CAPABILITIES HAVING IT IN SOUND BLASTER IS SIGNIFICANT BECAUSE THEY HAVE SO MUCH OF THE MARKET SAID JOHN OBERTEUFFER PRESIDENT OF VOICE INFORMATION ASSOCIATES A LEXINGTON MASS MARKET RESEARCH FIRM DATAQUEST INC ESTIMATES THAT LAST YEAR CREATIVE CAPTURED ABOUT HALF THE 240 MILLION SOUND BOARD MARKET WHILE VOICERECOGNITION TECHNOLOGY HAS IMPROVED SHARPLY IN RECENT YEARS RELATIVELY FEW PEOPLE HAVE BOUGHT THE EQUIPMENT CREATIVE AND VOICE PROCESSING SAID THEY EXPECT ITS USE IN A POPULAR PRODUCT WILL SHARPLY EXPAND THE MARKET SEPARATELY IN SINGAPORE CREATIVE SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE A US STARTUP COMPANY THAT MAKES AN EXPENSIVE VIDEOPHONE ADDON FOR MACINTOSH COMPUTERS CREATIVE WILL PAY 11 MILLION FOR SHAREVISION TECHNOLOGY INC A SAN JOSE CALIF CONCERN STARTED IN 1991 BY FOUR FORMER APPLE COMPUTER ENGINEERS SHAREVISION BEGAN SHIPPING ITS SHAREVIEW PLUS PRODUCT IN FEBRUARY SIM WONG HOO CHAIRMAN AND CHIEF EXECUTIVE OF CREATIVE SAID THE COMPANY WANTS TO GET THE SYSTEM'S COST DOWN TO ABOUT 1000 A UNIT FROM THE CURRENT 4490 AND TRANSFER THE TECHNOLOGY TO IBMCOMPATIBLE PCS CREATIVE BELIEVES IT THEN CAN USE ITS BRAND NAME AND DISTRIBUTION CLOUT TO TURN THE PRODUCT INTO A HIT 9305110001 930511 MARKETING & MEDIA VANITY FAIR PUBLISHER RONALD GALOTTI IS FORCED OUT AFTER CLASH INSIDERS SAY BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RONALD A GALOTTI PUBLISHER OF VANITY FAIR WAS FORCED TO LEAVE THE MAGAZINE AFTER CLASHING WITH TOP EXECUTIVES OF PARENT CONDE NAST PUBLICATIONS INC INSIDERS SAID CONDE NAST NAMED KATHY NEISLOSS LEVENTHAL 37 YEARS OLD TO SUCCEED HIM SHE HAD BEEN PUBLISHER OF ALLURE THE UPSTART BEAUTY MAGAZINE FROM CONDE NAST WHICH HAS SHOWN STRONG GROWTH IN AD PAGES SINCE ITS LAUNCH IN 1991 CONDE NAST SAID A NEW PUBLISHER FOR ALLURE WOULD BE ANNOUNCED THIS WEEK OFFICIALLY CONDE NAST A UNIT OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC SAID IN A NEWS RELEASE THAT MR GALOTTI 44 RESIGNED TO PURSUE OTHER INTERESTS BUT IT DIDN'T ELABORATE BERNARD LESER PRESIDENT OF CONDE NAST SAID IN AN INTERVIEW AS FAR AS WE ARE CONCERNED RON RESIGNED FOR PERSONAL REASONS HE'S HAD A FINE CAREER WITH US BUT FOR PERSONAL REASONS HE DECIDED TO GO IN ANOTHER DIRECTION BUT CONDE NAST INSIDERS SAY MR GALOTTI WAS FORCED OUT BY CONDE NAST CHAIRMAN SI NEWHOUSE JR CONDE NAST EXECUTIVES SAID MR GALOTTI HAD CLASHED WITH MR LESER OVER MANAGEMENT ISSUES AT VANITY FAIR WHICH HAS BEEN HIT WITH HEAVY AD LOSSES SINCE THE DEPARTURE LAST YEAR OF TINA BROWN AS EDITOR COMPANY INSIDERS SAID MESSRS NEWHOUSE AND LESER WERE ALSO CONCERNED WITH HEAVY TURNOVER IN VANITY FAIR'S SALES STAFF UNDER MR GALOTTI MR GALOTTI HAD AN IMPRESSIVE RISE AT CONDE NAST AND HIS DEPARTURE CAME AS A SURPRISE TO THE INDUSTRY BEGINNING IN 1985 HE SERVED AS PUBLISHER OF MADEMOISELLE THEN HELPED LAUNCH CONDE NAST TRAVELER BEFORE JOINING VANITY FAIR CONDE NAST'S FASTEST GROWING AND MOST WIDELY RECOGNIZED TITLE IN 1990 AS PUBLISHER SOME EVEN CONSIDERED HIM A POSSIBLE SUCCESSOR TO MR LESER AS MR NEWHOUSE'S NO 2 MAN IN CHARGE OF THE US MAGAZINE COMPANY HOWEVER THE MOVE IS TYPICAL OF THE SUDDEN MANAGEMENT CHANGES EITHER CARRIED OUT OR ENDORSED BY MR NEWHOUSE AT CONDE NAST LAST MONTH CONDE NAST SUDDENLY CLOSED DOWN HG FORMERLY HOUSE & GARDEN ONE OF THE ORIGINAL COMPANY TITLES AFTER ACQUIRING ARCHITECTURAL DIGEST MR NEWHOUSE HAS YANKED EDITORS UNEXPECTEDLY IN RECENT YEARS FROM VOGUE SELF AND MADEMOISELLE PRESSURE WAS BUILDING ON MR GALOTTI TO TURN AROUND ADVERTISING AT VANITY FAIR BUT COMPANY INSIDERS SAID HIS FATE WAS SEALED AFTER HE CHALLENGED MR LESER'S AUTHORITY TO CONTROL HIM INSIDERS SAID THE ACRIMONY BETWEEN THE TWO WAS MADE CLEAR BY THE FACT THAT MR GALOTTI ISN'T TAKING ANOTHER POSITION AT CONDE NAST AS IS OFTEN THE CASE WITH OTHER DISPLACED PUBLISHERS AND EDITORS AT THE COMPANY MR GALOTTI DIDN'T RETURN CALLS MR LESER DESCRIBED MR GALOTTI AS VOLATILE AND DYNAMIC BUT SAID HE HAD NO PERSONAL PROBLEM WITH RON WHATSOEVER BUT HE ADDED WHILE MR GALOTTI WILL BE MISSED CONDE NAST IS STRONGER THAN ANY INDIVIDUAL ALL OF US HAVE TO GO ONE DAY AND THE COMPANY GOES ON ASKED WHETHER MR GALOTTI WAS FORCED OUT MR LESER HAD NO COMMENT DESCRIBED AS A HARDDRIVING AND SOMETIMES OVERLY DEMANDING PUBLISHER MR GALOTTI WAS KNOWN FOR ADDING A STREETWISE AGGRESSIVENESS TO CONDE NAST'S FASHIONABLY GENTEEL SURROUNDINGS ONLY LAST MONTH MR GALOTTI SAID IN A PUBLISHED REPORT THAT DESPITE VANITY FAIR'S AD LOSSES THE MAGAZINE WOULD BOUNCE BACK AND HE WAS MAKING PLANS FOR ITS RECOVERY MR GALOTTI WAS EVEN PHOTOGRAPHED FOR THIS WEEK'S ISSUE OF INSIDE MEDIA AN INDUSTRY PUBLICATION WITH HIS EDITOR AND MS BROWN'S SUCCESSOR E GRAYDON CARTER LAST MONTH MR NEWHOUSE DENIED SPECULATION THAT MR CARTER'S JOB MIGHT BE IN JEOPARDY SAYING CONDE NAST FULLY SUPPORTS VANITY FAIR'S NEW EDITOR 9305110100 930401 REVIEW & OUTLOOK EDITORIAL CRASS ACTION THE BIGGEST CLASSACTION LAWSUIT IN THE HISTORY OF THE PLANET WRAPPED UP IN ATLANTA LAST WEEK IN A SETTLEMENT APPROVED BY JUDGE MARVIN SHOOB ATTORNEYS CLAIMING TO REPRESENT 12 MILLION AGGRIEVED PASSENGERS WON 458 MILLION IN CASH AND DISCOUNT COUPONS FROM THE MAJOR AIRLINES WITH SO MUCH MONEY AT STAKE YOU'D EXPECT SOMEBODY TO BE WEEPING AND GNASHING THEIR TEETH NOW THAT IT'S OVER NOPE WE'RE TALKING A PRISTINE EXAMPLE OF LITIGATION GINNED UP SOLELY FOR THE BENEFIT OF THE LAWYERS IN A CASE THIS BAD THE ONLY WAY TO MAKE A SETTLEMENT FLY WAS TO GUARANTEE THAT EVERYBODY WENT HOME HAPPY THE CLASSACTION LAWYERS STAMPEDED INTO COURT THREE YEARS AGO AFTER LEARNING OF A GOVERNMENT PROBE OF ALLEGED AIRLINE PRICE FIXING THESE ENTERPRISING SOULS FILED 21 CASES EVENTUALLY CONSOLIDATED IN JUDGE SHOOB'S COURT SEEKING DAMAGES ON BEHALF OF A VAGUELY DEFINED CLASS OF VICTIMS THAT FINALLY INCLUDED EVERYBODY WHO FLEW OUT OF 34 AIRPORTS AROUND THE COUNTRY OVER A 54MONTH PERIOD LAST WEEK JUDGE SHOOB REWARDED THE ATTORNEYS WITH 144 MILLION IN FEES WHILE THIS WASN'T THE 24 MILLION THEY ASKED FOR IT WAS STILL 7 MILLION MORE THAN THEY SPENT BY THEIR OWN ACCOUNT DEVELOPING THE CASE THAT INCLUDES THEIR TIME WHICH NATURALLY THEY BILLED AT HUNDREDS OF DOLLARS AN HOUR LEADING THE RAIDING PARTY WAS PITTS CARR A PARTNER AT ATLANTA'S CARR TABB & POPE IN CLAIMING THEIR LOOT HE AND HIS CONFEDERATES POINTED TO THE PHENOMENAL RESULT THEY HAD ACHIEVED FOR THE TRAVELING PUBLIC AND THE VIGOR WITH WHICH THE DEFENDANTS CONDUCTED THE CASE DURING THE HEARINGS JUDGE SHOOB HIMSELF REPEATEDLY CLEARED HIS THROAT REGARDING WHAT HE CONSIDERED THE DUBIOUS MERITS OF THE ORIGINAL COMPLAINT AT ONE POINT DECLARING THAT HE WOULD ASSESS THE CHANCES OF THE PLAINTIFFS RECOVERING AS NOT GOOD IN CASE ANYBODY MISSED THE HINT THE JUDGE ADDED I THINK THE CASE WOULD HAVE A HARD TIME SURVIVING A MOTION FOR SUMMARY JUDGMENT THE FACT THAT NO SUCH MOTION WAS FORTHCOMING FROM THE DEFENSE LAWYERS WOULD NORMALLY SUGGEST A LACK OF VIGOR BORDERING ON RIGOR MORTIS BUT THIS WAS NO NORMAL CASE ON THE CONTRARY LAWYERS FOR ALASKA AIRLINES NOT EVEN NAMED IN THE COMPLAINT WERE BY THIS TIME LOBBYING TO HAVE THEIR CLIENT JOIN THE LIST OF ALLEGED CONSPIRATORS A PHENOMENAL RESULT WAS BEGINNING TO TAKE SHAPE AND ALASKA DIDN'T WANT TO BE LEFT OUT AS ONE ATTORNEY PUT IT THE AIRLINES THAT STOOD ACCUSED IMPLAUSIBLY OF FIXING TICKET PRICES COULD LOOK FORWARD TO PAYING NOTHING OR LESS THAN NOTHING IF THEY SETTLED RATHER THAN FIGHTING TOWARD A VERDICT INDEED BY PLAYING ALONG AND MAKING SURE THE PLAINTIFFS' LAWYERS GOT THEIR FEES THEY'D HAVE A CHANCE TO MAKE SOME MONEY TOO THE TRICK IS IN THE SETTLEMENT THE BULK OF WHICH CONSISTS OF CAREFULLY TAILORED DISCOUNT COUPONS TO BE DISTRIBUTED AMONG TRAVELERS THERE ARE A FEW THINGS WORTH NOTING ABOUT THESE COUPONS THEY'RE GOOD ONLY FOR ROUNDTRIP OFFPEAK TRAVEL AND THEY CAN BE USED FOR ONLY 10 OF THE TICKET PRICE WHAT'S MORE THE COUPONS CAN BE REDEEMED ONLY BY GOING DIRECTLY TO THE AIRLINE THEREBY CUTTING OUT THE TRAVEL AGENT WHOSE TRADITIONAL COMMISSION ISSURPRISE10 FINALLY TO GET THEIR HANDS ON THE COUPONS TRAVELERS WILL HAVE TO GO THROUGH ENORMOUS RIGMAROLE HOW DOES THIS DIFFER FROM THE SORT OF PROMOTIONAL DISCOUNTS USED ALL THE TIME TO LURE PASSENGERS WHO WOULDN'T OTHERWISE FLY INTO SEATS THAT WOULD OTHERWISE GO EMPTY THE ANSWER IS THAT IT DOESN'T THE ONLY DIFFERENCE IS THAT THANKS TO THE LITIGATION THE AIRLINES CAN ATTRACT TRAVELER TRAFFIC INTO EMPTY SEATS WITH THE IMPRIMATUR OF A FEDERAL COURT THIS PERHAPS WILL DELUDE SOME PASSENGERS INTO THINKING THEY'RE GETTING A SPECIAL DEAL AND THEREBY HELP THE AIRLINES SELL MORE TICKETS JUDGE SHOOB SOMEHOW DISCERNED IN ALL THIS A CERTAIN AND WORTHWHILE BENEFIT TO THE 12 MILLION FLIERS WHO WERE THE OSTENSIBLE VICTIMS AND ON THIS BASIS AWARDED THE ATTORNEYS THEIR WINDFALL A FINANCIAL INCENTIVE WAS NECESSARY ACCORDING TO JUDGE SHOOB'S ORDER SO OTHER PRIVATE ATTORNEYS GENERAL WOULD COME FORWARD WITH MORE SUCH CASES IN HIS OWN WORDS THE JUDGE BELIEVES THE WORLD WOULD BE A BETTER PLACE IF LEGAL BEAGLES STIRRED UP MORE PROTRACTED LITIGATION IN WHICH THE COURT FINDS THE PLAINTIFFS POSSESS SLIM CHANCE OF RECOVERY THE TRIAL LAWYERS MUST LOVE THIS GUY WE SUPPOSE THE AIRLINES ARE TO BE CONGRATULATED FOR TURNING LEMONS INTO LEMONADE AFTER ALL THEY DIDN'T ASK TO BE SUED BUT THERE'S STILL SOMETHING TROUBLING ABOUT THIS EPISODE INSTEAD OF DUKING IT OUT AS ADVERSARIES THE DEFENDANTS AND PLAINTIFFS' LAWYERS GOT INTO BED AND HAD THEIR WAY WITH THE PLAINTIFF MERCIFULLY IN THIS CASE PLAINTIFF WAS A VAGUE AND NEBULOUS ENTITY AND NO REAL HARM WAS DONE EXCEPT PERHAPS TO THE REPUTATION OF THE LEGAL SYSTEM BUT IF FUTURE HISTORIANS SOMEDAY WANT TO INVESTIGATE THE DEBASEMENT OF LAW IN OUR SOCIETY THIS CASE MAY BE A GOOD PLACE TO START SEE RELATED LETTER LETTERS TO THE EDITOR PRICEFIX CONSPIRACY IS WHAT'S TRULY CRASS WSJ MAY 11 1993 9304010045 YY93 MM05 9305110056 930416 LETTERS TO THE EDITOR SPORTSMEN KEEP THOSE DUCKS IN THE SKY CARLA BENNETT STAFF WRITER FOR PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS MUST FEEL SUPERBLY CLEANSED AFTER THE SPLEENVENTING SHE SHARED WITH WALL STREET JOURNAL READERS OUR WILDLIFE KILLING FIELDS LETTERS TO THE EDITOR APRIL 2 IT'S BEEN A LONG TIME SINCE WE'VE SEEN SUCH VITRIOL JAMPACKED INTO A SCANT 10 INCHES QUITE BEYOND THE JUST DUE OWED HER AS AN ARTISTIC PURVEYOR OF HYPERBOLE SHE EITHER DOESN'T KNOW WHAT SHE'S TALKING ABOUT OR IS A BALDFACED LIAR SHE IGNORES THE FACT THAT HUNTERS FISHERMEN AND TRAPPERS SHELL OUT IN EXCESS OF 195 BILLION ANNUALLY FOR STATE FEDERAL AND PRIVATE WILDLIFE CONSERVATION PROGRAMS THIS MONEY IS USED TO PAY FOR CONSERVATION PROGRAMS FOR GAME NONGAME AND ENDANGERED SPECIES THIS NATION'S SPORTSMEN FOOT THE LION'S SHARE OF THE BILL FOR CONSERVATION THROUGH FEES FOR LICENSES AND PERMITS FEDERAL EXCISE TAXES BORNE ON SPORTING EQUIPMENT AND THROUGH CONTRIBUTIONS TO PRIVATE ORGANIZATIONS THAT ACQUIRE AND ENHANCE WILDLIFE HABITATS TO ENSURE THAT ALL AMERICANS INCLUDING MS BENNETT AND HER ILK ARE ABLE TO ENJOY WILDLIFE HUNTERS DO SIT ON RULEMAKING BODIES THAT ADMINISTER WILDLIFE PROTECTION LAWS IN THE STATES SO DO FARMERS RANCHERS ENVIRONMENTALISTS AND A BROAD ARRAY OF PEOPLE WHO HAVE DISPLAYED CONCERN FOR WILDLIFE WHEN THE ANIMAL RIGHTS CROWD EXPRESSES AS MUCH REAL CARING FOR IMPROVING THE LOT OF WILDLIFE IN THE WORLD AS IT DOES FOR RAISING MONEY AND MARCHING IN CIRCLES WITH SIGNS THEN PERHAPS THEY WILL BE INCLUDED OF COURSE IT WILL TAKE EFFORT ON THEIR PART TO GET UP TO SPEED ON THE PRESSING ISSUES FACING WILDLIFE NOT TO MENTION FOR DEVISING THE SOLUTIONS TO THOSE PROBLEMS THE EDUCATIONAL PROCESS THIS WILL ENTAIL WILL FIND THE MAJORITY OF THEM COMING INTO THE REAL WORLD REGARDING WILDLIFE CONSERVATION ESCHEWING THE LALA LAND OF ANIMAL RIGHTS MS BENNETT COMPLAINS ABOUT NOT HEARING THE HONK OF GEESE OVERHEAD AS SHE SITS AT THE WORD PROCESSOR IN HER POLITICAL ACTION COMMITTEE OFFICE IN WASHINGTON IF SHE REALLY WANTS TO SEE HOW HUNTERS AND FISHERMEN HAVE BENEFITED WILDLIFE SHE NEEDS TO GET OUT OF HER OFFICE AND COME TO WHERE GEESE REALLY DO HONK AND DUCKS COVER THE SKY JUST BEFORE SUNSET IT'S UNCLEAR WHETHER MS BENNETT IS UNINFORMED OR SIMPLY FABRICATING HER STATISTICS SPORTSMEN NOT ONLY MAKE IMMENSE CONTRIBUTIONS TO IMPROVE WILDLIFE HABITATS BUT ALSO REDUCE HER TAX BILL AND I GUESS SHE HAS NEVER HEARD OF ORGANIZATIONS SUCH AS DUCKS UNLIMITED THE ROCKY MOUNTAIN ELK FOUNDATION OR COUNTLESS OTHER WILDLIFE CONSERVATION GROUPS SPONSORED BY HUNTERS AND FISHERMEN MS BENNETT IS INCORRECT IN HER STATEMENT ABOUT GUN NUTS SWARMING THROUGH STATE PARKS IN GEORGIA AT LEAST HUNTING IS PROHIBITED IN ALL STATE PARKS OUR FAMILY HAS A LONG AND RICH TRADITION OF HUNTING I HAVE HUNTED FOR HALF A CENTURY I BELONG TO THE ROUGH GROUSE SOCIETY TO HELP PRESERVE AND PROPAGATE THAT GRANDEST OF ALL GAME BIRDS ANYONE WHO KNOWS EVEN A LITTLE BIT ABOUT DUCKS KNOWS THAT HABITAT AND HOW MUCH RAIN THE PONDS AND SLOUGHS RECEIVE AND WHETHER THAT RAIN COMES BEFORE OR AFTER THE DUCKLINGS HATCH MAKE MORE DIFFERENCE THAN ANY OTHER FACTORS IN DETERMINING HOW MANY YOUNG WILL HATCH AND SURVIVE LAST SPRING WE HAD MORE BLUEBILLS ON OUR LAKE THAN I CAN RECALL FOR THE PAST 30 YEARS IT'S QUITE IMPRESSIVE TO SEE THOUSANDS OF THESE HANDSOME BIRDS RETURN IN ALL THEIR SPLENDOR BUT TRYING TO EXPLAIN THE REAL FACTS TO THE CARLA BENNETTS OF THE WORLD WILL NEVER WORK REASON AND LOGIC DO NOT DISARM THE SALESMAN BENT ON PURVEYING PROPAGANDA SEE RELATED LETTER LETTERS TO THE EDITOR RUFFLED GROUSER WSJ MAY 11 1993 9304160024 YY93 MM05 9305110047 930421 CHIVALRY WENT DOWN WITH THE TITANIC BY LINDA LICHTER ALTHOUGH IT WAS LITTLE NOTICED LAST WEEK MARKED THE 81ST ANNIVERSARY OF THE SINKING OF THE TITANIC AND WITH IT THE LAST GASP OF VICTORIAN CHIVALRY ONLY A THIRD OF THE TITANIC'S PASSENGERS SURVIVED MOST WERE WOMEN AND CHILDREN WHEN A SURVIVING SHIP'S OFFICER WAS LATER ASKED WHETHER THIS WOMENANDCHILDRENFIRST POLICY WAS THE CAPTAIN'S RULE OR THE RULE OF THE SEA HE REPLIED THAT IT WAS THE RULE OF NATURE OFFICIAL INQUIRIES REVEALED THAT SEVERAL MALE PASSENGERS REFUSED TO ENTER LIFEBOATS BECAUSE THEY COULDN'T BE SURE ALL THE WOMEN ABOARD HAD BEEN RESCUED ONE MAN CONSENTED TO TAKE A SEAT ONLY AFTER RECEIVING A SIGNED STATEMENT THAT HE DID SO UNDER PROTEST SUCH MEN UNDERSTOOD THE ESSENTIAL AND INTIMATE LINKS BETWEEN VICTORIAN ETIQUETTE AND MAKING THE ULTIMATE SACRIFICE FOR THE WOMEN SOCIETY HAD TAUGHT THEM TO REVERE THEY WOULD BE APPALLED TO LEARN THAT TODAY THE FAIR SEX IS ROUTINELY VERBALLY ASSAULTED AND DENIED SEATS ON TRAINS EVEN WHEN OBVIOUSLY PREGNANT THEY WOULD ASK US TO EXPLAIN HOW WE COULD FIGHT TO PUT A FEW WOMEN ON THE SUPREME COURT AND IN CORPORATE TOWERS WHILE STRIPPING ALL WOMEN OF THE FREEDOM TO WALK OUR STREETS IN SAFETY THE EROSION OF CIVILITY IN OUR ERA IS DUE IN PART TO FEMINISTS WHO SAW CHIVALRY AS TYRANNY DRESSED IN KID GLOVES BUT FEMINISTS DESERVE ONLY PART OF THE BLAME SINCE THE 1960S AN ENTIRE GENERATION HAS GLEEFULLY OBLITERATED ALL VESTIGES OF VICTORIAN MANNERS THE CUSTOMS OF A SILKHATTED CENTURY WERE DEEMED TOO RIGID TOO SNOOTY TOO WASPY BUT THEIR WORST CRIME WAS PERPETUATING AND EMBODYING THAT GREAT PURITAN BUGABOO SELFRESTRAINT IN THE DAYS BEFORE IMMEDIATE GRATIFICATION WAS REGARDED AS A HEALTHY SIGN OF EMOTIONAL EXPRESSIVENESS THE SELFRESTRAINT TAUGHT IN HOMES SCHOOLS AND CHURCHES SHIELDED WOMEN FROM MEN'S BRUTE INSTINCTS WHILE BLUNTING THE SHARP EDGES OF A DARWINIAN WORLD AFTER THE CIVIL WAR AMERICAN VICTORIANS WERE STUNNED TO LEARN THAT THEY WERE NOT ONE STEP BELOW THE ANGELS BUT A FEW STEPS ABOVE PRIMORDIAL SLUDGE THEY GULPED HARD AT THAT REVELATION THEN EXPANDED THEIR ETIQUETTE CODE VIA AN EXPLOSION OF ETIQUETTE MANUALS TO PROVE THEY COULD RISE ABOVE THEIR ROOTS THEY SAW THIS SAME CODE WHICH COVERED EVERY ACTION FROM DEBATING DELICATE SUBJECTS TO THE PROPER FOLDING OF A CALLING CARD AS A RATIONAL RESPONSE TO A SOCIETY OF WIDENING CLASS RACIAL RELIGIOUS AND ETHNIC DIVISIONS THEY REALIZED A FRAGMENTED NATION NEEDS THE COMMON CURRENCY OF COMMON COURTESY TO PEACEFULLY SETTLE ITS DISPUTES AS MUCH AS IT NEEDS A COMMON LANGUAGE IN OUR ERA WE HAVE OPTED TO REPLACE THAT CODE WITH CULTURAL ANARCHY THAT ENCOURAGES EVERY INDIVIDUAL TO MAXIMIZE SELFEXPRESSION WHATEVER THE COST YET I VENTURE THAT THERE ARE MANY WOMEN LIKE ME WHO WOULD WELCOME A LITTLE OLDFASHIONED RESTRAINT PEOPLE KNOW THAT LIFE WITHOUT MONEY OR CONNECTIONS WAS ALWAYS TOUGH BUT THEY SENSE THAT IT USED TO BE SAFER AND SMOOTHER THEY DIDN'T LIVE IN NEW YORK CITY A CENTURY AND A HALF AGO WHEN THREE OUT OF FIVE ARRESTS WERE FOR NOTHING WORSE THAN DRUNKENNESS OR DISORDERLY CONDUCT THEY NEVER WALKED LOWER BROADWAY WHEN CUSTOM CONFINED LOUTS WHO SMOKED IN PUBLIC TO THE EAST SIDE OF THE STREET BECAUSE THE WEST SIDE HAD FINER LADIES' SHOPS THEY NEVER IDLED IN HENRY JAMES'S DRAWING ROOM WHERE MEN EXITED BACKWARD BECAUSE A GENTLEMAN DIDN'T SHOW A LADY HIS BACK YET THEY KNOW THAT IN MANY WAYS LIFE WAS BETTER WE CANNOT RECAPTURE THE PAST ANY MORE THAN WE CAN ESCAPE IT NOR SHOULD WE BUT WOMEN CAN DEMAND CIVILITY WITH THE SAME FERVOR WITH WHICH WE DEMAND OUR CIVIL RIGHTS AND IF CRITICS ATTEMPT TO TRIVIALIZE THIS QUEST BY TARRING ITS SUPPORTERS AS PINKIECROOKING TEA DRINKERS ACTUALLY POLITE PEOPLE NEVER CROOKED THEIR PINKIES LET US REPLY THAT WHEN MEN RELEARN RESPECT FOR WOMEN AND THE SELFRESTRAINT IT IMPLIES VIOLENCE AGAINST WOMEN WILL DECLINE AND EVERYDAY LIFE WILL BE A SHADE MORE PLEASANT TO MY MIND INCIVILITY IS SEXUAL HARASSMENT VICTORIAN MEN USED TO BE STIGMATIZED AS BRUTES BOUNDERS OR WORSE FOR SINS OF BOTH COMMISSION AND OMISSION AGAINST WOMEN IF A MALE DINNER GUEST FAILED TO BOW HIS HEAD TO THE LADY OF THE HOUSE WHEN RAISING HIS FIRST GLASS OF WINE AT THE TABLE HE WAS JUDGED DISRESPECTFUL AND WOULD NOT RECEIVE ANOTHER INVITATION IT WAS OTHER MEN WHO ENFORCED THAT STIGMA BY SOCIALLY OSTRACIZING THE OFFENDER AND EVEN REFUSING TO DO BUSINESS WITH HIM IN THE WORDS OF ONE MID19TH CENTURY ETIQUETTE BOOK SUCH PRACTICES FORM A SORT OF SUPPLEMENT TO THE LAW WHICH ENABLES SOCIETY TO PROTECT ITSELF AGAINST OFFENSES WHICH THE LAW CANNOT TOUCH THIS UNWRITTEN CODE OF ETIQUETTE WAS FAR MORE EFFECTIVE THAN TODAY'S FUZZY HATECRIME AND HATEFULSPEECH LAWS BEFORE WOMEN HAD THE VOTE WE HAD THE MORAL GROUND IT IS TIME FOR US TO PUT ONE FOOT BACK ON THE PEDESTAL WHILE KEEPING THE OTHER PLANTED IN THE EXECUTIVE SUITE IT CAN BE DONE A SEX THAT CAN SURVIVE PREGNANCY CHILDBIRTH AND MENOPAUSE WHILE STILL RUNNING AN OFFICE AND RUNNING CARPOOLS CAN DO ANYTHING MRS LICHTER IS CODIRECTOR OF THE CENTER FOR MEDIA AND PUBLIC AFFAIRS IN WASHINGTON SEE RELATED LETTERS LETTERS TO THE EDITOR MIND YOUR MANNERS PLEASE WSJ MAY 11 1993 9304210114 YY93 MM05 9305100166 930510 UK SLATES ACTION ON INSURANCE FUND FOR TERRORIST ACTS SPECIAL TO THE WALL STREET JOURNAL LONDON THE UNITED KINGDOM GOVERNMENT HOPES TO BUILD UP A TERRORIST REINSURANCE FUND TO AT LEAST 1 BILLION 158 BILLION ACCORDING TO PEOPLE FAMILIAR WITH THE SCHEME THE GOAL EMERGED FRIDAY AS THE GOVERNMENT PUBLISHED AN ENABLING BILL BEFORE PARLIAMENT TO ALLOW IT TO PAY CLAIMS AS REINSURER OF LAST RESORT AGAINST COMMERCIALPROPERTY DAMAGE FROM TERRORIST ATTACKS ON MAINLAND BRITAIN PASSAGE OF THE BILL WILL ACTIVATE THE VEHICLE FOR THE GOVERNMENT'S PLAN POOL REINSURANCE CO POOL RE IS A MUTUAL COMPANY THAT WILL BE OWNED BY THE INSURERS WHO PAY PREMIUMS INTO A FUND THAT WILL PROVIDE A FIRST LINE OF REINSURANCE IN CASE OF DAMAGE FROM TERRORIST ATTACKS THE BRITISH GOVERNMENT WILL PROVIDE A SECOND LINE OF REINSURANCE AND DRAW PREMIUM INCOME FROM THE FUND FOR THAT SERVICE BUT THE SOURCES WHO SPOKE ON CONDITION OF ANONYMITY SAID IT WILL BEGIN TO DO SO ONLY AFTER THE FUND REACHES 1 BILLION WHICH THEY DESCRIBED AS A LEVEL OF COMFORT THE BRITISH GOVERNMENT HAS COMMITTED ITSELF TO PROVIDING TERRORISM REINSURANCE COVER SINCE THE BEGINNING OF THE YEAR AND REAFFIRMED THAT BACKING FOLLOWING LAST MONTH'S IRISH REPUBLICAN ARMY BOMBING IN LONDON'S FINANCIAL DISTRICT PASSAGE OF THE ENABLING BILL WILL ALLOW IT TO PAY ACTUAL CLAIMS THE GOVERNMENT WAS FORCED TO GIVE ITS BACKING TO COMMERCIALPROPERTY INSURERS WHEN PRIVATE REINSURERS WHO PROVIDE INSURANCE TO INSURERS WITHDREW COVER FOR DAMAGE CAUSED BY TERRORIST ATTACKS FOLLOWING AN APRIL 1992 IRA BOMBING OF LONDON'S BALTIC EXCHANGE A SPOKESMAN FOR THE ASSOCIATION OF BRITISH INSURERS OR ABI WHICH FORCED THE GOVERNMENT'S HAND LAST YEAR BY THREATENING TO WITHDRAW TERRORISM COVER FROM UKBASED BUSINESSES SAID FRIDAY THAT THE SIZE OF POOL RE'S INITIAL FUND WAS UNKNOWN UNTIL INSURERS THAT HAVE SEPARATELY SET ASIDE FUNDS IN ESCROW PUT THOSE FUNDS INTO POOL RE YET THE ABI SPOKESMAN SAID THE ENTIRE INITIAL FUND IS LIKELY TO BE WIPED OUT BY LAST MONTH'S BOMB WHICH CAUSED DAMAGED ESTIMATED BETWEEN 300 MILLION AND 1 BILLION PEOPLE FAMILIAR WITH THE SITUATION SAID THE GOVERNMENT PROBABLY WILL HAVE TO COVER SOME OF THE LOSSES FROM THAT BOMB THEY SAID IT WAS IMPOSSIBLE TO ESTIMATE WHAT THE GOVERNMENT'S TAB WILL BE SINCE THEY DIDN'T KNOW HOW MANY OF THE INSURERS AFFECTED HAD JOINED POOL RE BEFORE THE BLAST COMMERCIAL UNION PLC RECENTLY ANNOUNCED IT HADN'T TAKEN OUT REINSURANCE AS THE LEAD INSURER OF TWO OF THE MOST BADLY DAMAGED BUILDINGS INSURERS ALSO WILL BE ASKED TO PAY THE FIRST 25 MILLION OF DAMAGES ON APARTMENT BUILDINGS ADDITIONAL LOSSES WILL BE MET BY POOL RE UNTIL ITS RESOURCES ARE EXHAUSTED AT THAT POINT ACCORDING TO A MEMORANDUM ATTACHED TO THE BILL RESPONSIBILITY WILL SHIFT BACK TO THE INSURERS TO MEET EXCESS CLAIMS UP TO 10 OF THE TOTAL PREMIUMS THEY PAID INTO THE FUND ONLY THEN WILL THE BRITISH GOVERNMENT BE CALLED ON TO MEET REMAINING CLAIMS THE POOL RE SCHEME EXCLUDES NORTHERN IRELAND WHERE THE UK GOVERNMENT HAS LONG MET THE COST OF TERRORISM DAMAGE BY DIRECT PAYMENTS TO DAMAGED BUSINESSES RATHER THAN THROUGH REINSURANCE THE ENABLING BILL COULD BE PASSED BY PARLIAMENT THIS WEEK ACTIVATING POOL RE BEFORE THE END OF THE MONTH PEOPLE CLOSE TO THE SITUATION SAID THE GOVERNMENT AND PARTICIPATING INSURERS THEN WILL REVIEW PREMIUM RATES PROBABLY RAISING THEM TO REFLECT HEIGHTENED TERRORISM RISK 9305100165 930510 EXTHRIFT PRESIDENT PLEADS GUILTY IN CASE OVER CONDOMINIUMS NEWARK NJ THE FORMER PRESIDENT OF NOWDEFUNCT FIRST ATLANTIC SAVINGS & LOAN ASSOCIATION PLEADED GUILTY TO LYING TO FEDERAL BANK EXAMINERS ABOUT HIS AND OTHERS' INVOLVEMENT IN A SCHEME TO PROFIT FROM BANKFINANCED CONDOMINIUM DEVELOPMENTS ACCORDING TO THE US ATTORNEY'S OFFICE GERALD R O'KEEFFE OF BRIELLE NJ FACES A MAXIMUM SENTENCE OF FIVE YEARS IN PRISON AND A FINE OF 250000 SENTENCING IS SET FOR JULY 7 MR O'KEEFFE 53 YEARS OLD WHO SERVED AS FIRST ATLANTIC'S PRESIDENT FROM 1973 TO 1990 ADMITTED TO MAKING FALSE STATEMENTS ABOUT THE PARTICIPATION OF FIRST ATLANTIC OFFICERS IN CONDO VENTURES INVOLVING THE THRIFT THE US ATTORNEY'S OFFICE SAID ASSISTANT US ATTORNEY MARC FARLEY SAID FIRST ATLANTIC WAS A LENDER TO THE VENTURES AT FAVORABLE TERMS NOT AVAILABLE TO TYPICAL LOAN APPLICANTS MR O'KEEFFE ADMITTED THAT BETWEEN 1983 AND 1987 HE AND OTHER THRIFT OFFICERS PARTICIPATED IN PARTNERSHIPS THAT BOUGHT MODEL CONDO UNITS FROM JOINT VENTURES COMPRISED OF THE CONDO DEVELOPERS AND FIRST ATLANTIC SUBSIDIARIES THE OFFICERS' PARTNERSHIPS THEN LEASED THE CONDOS BACK TO THE JOINT VENTURES AT TERMS THAT COVERED THEIR CARRYING COSTS AND EARNED THEM MORE THAN 285000 WHEN THE MODEL CONDOS INCREASED IN VALUE PROSECUTORS SAID PROSECUTORS SAID MR O'KEEFFE FAILED TO DISCLOSE THE ACTIVITIES AS WAS REQUIRED DURING AN AUDIT BY THE FEDERAL HOME LOAN BANK BOARD THE BANK BOARD WAS A PREDECESSOR TO THE CURRENT OFFICE OF THRIFT SUPERVISION FIRST ATLANTIC WAS DECLARED INSOLVENT IN FEBRUARY 1990 AND SEIZED BY REGULATORS FIRST ATLANTIC HAD ITS HOME OFFICE IN PLAINFIELD NJ AND BRANCH OFFICES THROUGHOUT NEW JERSEY EIGHT OTHER PEOPLE PREVIOUSLY HAVE BEEN CONVICTED SOME ON LOANKICKBACK CHARGES IN CONNECTION WITH A FEDERAL INVESTIGATION OF FIRST ATLANTIC'S LENDING PRACTICES PROSECUTORS SAID 9305100164 930510 POLITICS & POLICY PROPOSAL FOR HEALTHCARE COOPERATIVES DRAWS CRITICISM AS SOME SEE GROWING REGULATOR ROLE BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ARE THEY CONSUMER ADVOCACY BOARDS OR BUREAUCRATIC MONSTERS AT THE CORE OF PRESIDENT CLINTON'S PLAN TO CONTROL MEDICAL COSTS AND PROVIDE HEALTH CARE FOR EVERYONE IS THE CREATION OF REGIONAL COOPERATIVES ACROSS THE COUNTRY TO REPRESENT INDIVIDUALS AND EMPLOYERS IN SHOPPING FOR HEALTH INSURANCE THE AIM TO GIVE SMALL EMPLOYERS SELFEMPLOYED PEOPLE AND THE UNEMPLOYED THE SAME BARGAINING MUSCLE AS BIG COMPANIES TO GET QUALITY MEDICAL CARE AND INSURANCE COVERAGE AT THE LOWEST COST BUT THE CONSUMERFRIENDLY COOPERATIVES MAY BE CAUGHT IN THE CLINTON PATTERN OF MERGING HIS NEW DEMOCRAT IDEAS WITH MORE TRADITIONAL ONES CRITICS SAY THE ADMINISTRATION IN ITS FERVOR TO CURB THE RELENTLESS RISE IN HEALTHCARE COSTS IS PILING MORE AND MORE POWERS ON THE COOPERATIVES TURNING THEM INTO POTENT REGULATORY AGENTS AS CURRENTLY ENVISIONED BY MR CLINTON'S HEALTH ADVISERS THE PURCHASING NETWORKS WILL COLLECT TENS OF THOUSANDS OF DOLLARS FROM EMPLOYERS AND INDIVIDUALS HELP ENFORCE A NEW NATIONWIDE HEALTH BUDGET AND HAVE THE POWER TO EFFECTIVELY SHUT SOME HEALTH PLANS OUT OF REGIONAL MARKETS ADMINISTRATION HEALTH OFFICIALS ACKNOWLEDGE THAT THE PURCHASING COOPERATIVES COULD ALSO BE REGULATORS IN SOME CASES BUT OVERALL THEY INSIST THAT THE CONSUMER ALLIANCES WON'T BE REGULATORY TOOLS THE PURCHASING ALLIANCE IS NOT A REGULATOR IT IS ACTING ON BEHALF OF THE CONSUMERS TO GET THEM THE BEST CHOICES THE BEST QUALITY AND THE LOWEST PRICES SAYS WALTER ZELMAN WHO HEADED AN ADVISORY GROUP THAT DREW UP RECOMMENDATIONS ON HOW TO STRUCTURE THE HEALTH ALLIANCES FOR THE ADMINISTRATION'S HEALTHCARE TASK FORCE SOME INSURERS AND OTHERS MIGHT BE ALARMED AT THE BARGAINING STRENGTH OF SUCH AN ALLIANCE BUT IT WON'T BE CONSUMERS ADMINISTRATION OFFICIALS ALSO STRESS THAT THEY NEVER SET OUT TO COPY THE JACKSON HOLE PLAN INDEED THEY HAVE PURPOSELY TRIED TO COME UP WITH A NAME OTHER THAN HIPC FOR THEIR VERSION OF THE COOPERATIVES TO DATE THE CHOICE IS HEALTH ALLIANCE AND OFFICIALS INSTANTLY CORRECT ANYONE WHO SLIPS BACK INTO THE TERM HIPC WHATEVER NAME IS USED SEVERAL POINTS OF CONTROVERSY ARE EMERGING SURROUNDING THE ALLIANCES BUT SOME BUSINESSES ARE OBJECTING STRENUOUSLY FEARING THAT IF THEY ARE FORCED TO POOL THEIR RISKS WITH POOR AND UNEMPLOYED PEOPLE THEIR PREMIUMS WILL GO UP WE THINK THAT'S THE SLEEPER ISSUE SAYS MARY NELL LEHNHARD WHO HEADS THE GOVERNMENT RELATIONS OFFICE OF THE BLUE CROSS/BLUE SHIELD ASSOCIATION IN AT LEAST TWO RECENT MEETINGS WITH OUTSIDE GROUPS IRA MAGAZINER THE WHITE HOUSE AIDE OVERSEEING THE HEALTHCARE EFFORT HAS TOLD PARTICIPANTS THAT ADDING THE MEDICAID POPULATION TO THE POOL COULD INCREASE EVERYONE'S PREMIUMS BY 350 PER PERSON AN ALLIANCE COULD CONTRACT WITH ONLY ONE PLAN IF IT DESIRED ACCORDING TO ADMINISTRATION OFFICIALS THAT MEANS THAT ALL INDIVIDUALS COVERED BY THE ALLIANCE WOULD HAVE TO ENROLL IN THAT PLAN AND ALL OTHER PLANS IN THE AREA WOULD BE VIRTUALLY SHUT OUT OF THE MARKET FOR THE YEAR THAT MUSCLE IS ALL TO THE GOOD ADMINISTRATION OFFICIALS SAY IN THAT POWER TO CONTRACT IS A LOT OF LEVERAGE TO MOVE ALL HEALTH PLANS TOWARD HIGHER QUALITY BETTER SERVICES AND LOWER PRICES SAYS MR ZELMAN BUT DEMOCRATIC REP JIM COOPER OF TENNESSEE AUTHOR OF A MANAGED COMPETITION BILL THAT ESTABLISHES PRIVATELY RUN HIPCS THAT MERELY LIST ALL HEALTH PLANS OFFERING THE STANDARD PACKAGE OF BENEFITS SAYS THE POWER TO CONTRACT IS TOO INTRUSIVE WE ENVISION REALLY A FARMERS MARKET WHERE EVERY LEGITIMATE VENDOR OF HEALTH CARE COULD SELL THEIR WARES HE SAYS HE CHARGES THAT THE ADMINISTRATION'S VERSION INSERTS ITSELF BETWEEN THE PUBLIC AND THE HEALTHCARE COMMUNITY DECIDING WHAT IS GOOD FOR THE PUBLIC CRITICS SAY THE EMERGING HEALTH ALLIANCES MAKE THE CLINTON HEALTH SYSTEM LOOK MORE AND MORE LIKE CANADA'S FEDERALLY FINANCED NATIONAL HEALTH SYSTEM TO ME THE LARGER THEY BECOME THE MORE LIKE CANADIAN PROVINCES THEY BEGIN TO LOOK SAYS ELLEN GOLDSTEIN DIRECTOR OF HEALTH POLICY AT THE ASSOCIATION OF PRIVATE PENSION AND WELFARE PLANS WHICH REPRESENTS MANY LARGE CORPORATIONS AND OTHERS IN THE EMPLOYEE BENEFITS FIELD DEMOCRATIC REP PETE STARK OF CALIFORNIA CHAIRMAN OF A KEY HOUSE HEALTH SUBCOMMITTEE WHO FAVORS SOMETHING CLOSER TO A GOVERNMENTRUN HEALTH SYSTEM SAYS WE'RE NOT GOING TO HAVE A CANADIAN SYSTEM WE'RE GOING TO HAVE A HIPC SYSTEM AND KING HIPC WILL MAKE THE DECISIONS 9305100163 930510 GLOBAL VIEW WAR'S IRON LAW YOU'VE GOT TO KNOW THE TERRITORY BY GEORGE MELLOAN ON SATURDAY THE BELGIAN CITY CALLED YPRES IN FRENCH AND IEPER IN FLEMISH CELEBRATED ITS ANNUAL FEAST OF THE CATS HIGHLIGHTED BY THE TOSSING OF CATS FROM THE HIGH TOWER OF CLOTH HALL ANIMAL LOVERS WILL BE HAPPY TO KNOW THAT SINCE 1817 ONLY TOY PLUSH CATS HAVE BEEN FLUNG BUT BEFORE THAT DATING BACK TO AT LEAST 962 LIVE CATS TOOK THE FALL IN SACRIFICE TO THE LOCAL BELIEF THAT THEIR DEATHS WOULD RID THE TOWN OF EVIL SPIRITS EVIL SPIRITS SEEM TO HAVE PLAGUED YPRES OR IEPER NONETHELESS IN WORLD WAR I THE ENTIRE CITY WAS REDUCED TO RUBBLE BY GERMAN ARTILLERY THE SURROUNDING REGION WAS THE SCENE OF SOME OF THE MOST SENSELESS SLAUGHTER OF THAT AWFUL WAR FEW ARMIES IN HISTORY HAVE BEEN SUBJECTED TO WORSE GENERALSHIP THAN WAS THE BRITISH EXPEDITIONARY FORCE UNDER DIMWITTED SIR DOUGLAS HAIG IN THE THIRD BATTLE OF YPRES ALSO KNOWN AS THE BATTLE OF PASSCHENDAELE EARLY IN WORLD WAR I IT WAS OBVIOUS THAT THE MACHINE GUN HAD TILTED THE ODDS HEAVILY AGAINST A SUCCESSFUL INFANTRY ASSAULT ON ENTRENCHED POSITIONS FIELD MARSHAL HAIG CHOSE NOT ONLY TO LAUNCH SUCH AN ATTACK IN AUGUST 1917 BUT TO DO IT THROUGH BELGIAN LOWLANDS THAT HEAVY RAINS HAD TURNED TO A KNEEDEEP SEA OF MUD FOR MINIMAL GAINS THE ALLIES SUFFERED 250000 CASUALTIES INCLUDING SOME WHO DROWNED IN WATERFILLED SHELL CRATERS FIELD MARSHAL HAIG HAD LITTLE DIRECT KNOWLEDGE OF CONDITIONS ON THE GROUND HIS CHIEF OF STAFF WAS QUOTED AS SAYING AFTER FINALLY VISITING THE BATTLEFIELD GOOD GOD DID WE REALLY SEND MEN TO FIGHT IN THAT THE PASSCHENDAELE CALAMITY RETAUGHT AN ANCIENT LESSON OF WARFARE THE CRUCIAL IMPORTANCE OF TERRAIN THE DUKE OF WELLINGTON'S DEFEAT OF NAPOLEON AT WATERLOO WAS HEAVILY ATTRIBUTABLE TO THE DUKE'S UNCANNY KNACK FOR CHOOSING HIS GROUND PRESIDENT EISENHOWER REFUSED TO SEND AMERICAN TROOPS TO HELP THE FRENCH IN INDOCHINA BECAUSE HE KNEW THE DIFFICULTIES OF BEATING A GUERRILLA ARMY ON ITS OWN JUNGLE TURF WHEN PRESIDENT JOHNSON LATER ASKED THE RETIRED GENERAL AND PRESIDENT FOR ADVICE ON PROSECUTING THE VIETNAM WAR HE RECEIVED ALTHOUGH TO NO AVAIL ANOTHER EISENHOWER MAXIM DON'T GET INVOLVED IN A WAR UNLESS YOU PLAN TO WIN IT WHICH BRINGS UP THE MILITARY PROBLEM FACING PRESIDENT CLINTON TODAY WHETHER TO USE AMERICAN MILITARY FORCE AGAINST THE BOSNIAN SERBS THE PRESIDENT SEEMS INCLINED TO EMPLOY AIR POWER IN BOSNIA HE SHOULD FIRST CONSIDER TWO QUESTIONS HOW DIFFICULT IS THE TERRAIN AND WHAT WOULD CONSTITUTE WINNING THE TERRAIN ISSUE WAS ANALYZED ON THESE PAGES LAST WEEK BY JOURNAL CONTRIBUTING EDITOR MARK HELPRIN IN MOUNTAINOUS WOODED BOSNIA IT WILL BE DIFFICULT FOR EVEN THE HIGHTECH ELECTRONICS OF ALLIED STRIKE AIRCRAFT TO FIND AND HIT TARGETS SERB HEAVY WEAPONS ARE EASILY SHIFTED FROM ONE FORESTED HIDING PLACE TO ANOTHER IF ALLIED PILOTS SHOULD THEMSELVES KILL CIVILIANS WOULD THIS TURN PUBLIC SENTIMENT AGAINST THE US AND RISK WIDENING THE WAR WHAT WOULD CONSTITUTE WINNING FORCING THE BOSNIAN SERBS TO ACCEPT THE VANCEOWEN PEACE PLAN HAS BEEN IDENTIFIED BY THE WHITE HOUSE AS THE DESIRED VICTORY BUT IT MIGHT ONLY BE THE START OF ANOTHER KIND OF WAR VANCEOWEN ENVISIONS SOME 75000 UN PEACEKEEPING TROOPS IN BOSNIA WITH THE RIGHT TO SHOOT BACK IF FIRED UPON THE ODDS ARE HEAVY THAT THEY WOULD IN FACT BE FIRED UPON THE US AND ITS ALLIES WOULD THEN BE HOSTAGE TO GUERRILLA WARFARE ON INHOSPITABLE TERRAIN EVEN IF THE SERB PARLIAMENT HAD SAID YES TO VANCEOWEN LAST WEEK IT WOULD BE YET ANOTHER MATTER TO PERSUADE BOSNIAN SERB FORCES TO WITHDRAW AS THE PEACE PLAN DICTATES FROM NEARLY A THIRD OF THE 70 OF BOSNIA THEY NOW CONTROL AS THEY SEE IT THEY HAVE NEARLY ACCOMPLISHED THEIR GOAL OF MAKING BOSNIA A SERBIAN COUNTRY INDEED WHEN SERBIAN PRESIDENT SLOBODAN MILOSEVIC GREEK PRIME MINISTER CONSTANTINE MITSOTAKIS AND THEIR OWN LEADER RADOVAN KARADZIC URGED THEM TO ACCEPT VANCEOWEN IT HAD THE LOOK OF A VICTORY DANCE THEY WERE TOLD THAT THEY ALREADY HAD WON 90 OF WHAT THEY WANTED AND THAT THE REST COULD BE WON THROUGH PEACE THAT SOUNDED LIKE AN INVITATION TO ACCEPT THE PEACE PLAN BUT CONTINUE TO CONSOLIDATE THEIR GRIP ON BOSNIAHERZEGOVINA LORD OWEN HIMSELF BY WAY OF PERSUASION SUGGESTED THAT THE UN PEACEKEEPERS WOULD NOT ALLOW CROAT AND MUSLIM FIGHTERS TO RETURN TO AREAS VACATED BY THE SERBS EVEN THOUGH THOSE AREAS WOULD NOMINALLY REVERT BACK TO CROATS AND MUSLIMS UNDER THE PEACE PLAN'S TERMS HOW THE PEACEKEEPERS WOULD PREVENT MUSLIMS AND CROATS FROM TAKING REVENGE ON LOCAL SERBS IN THE DEAD OF NIGHT WAS NOT SPELLED OUT BUT SEEMS TO HAVE BEEN UPPERMOST IN THE MINDS OF THE SERBS NO ONE KNOWS BETTER THAN THEY THE HATREDS THEY HAVE STIRRED UP THROUGH ETHNIC CLEANSING THEN THERE IS THE QUESTION OF THE PEACEKEEPING FORCE ITSELF ASIDE FROM 25000 US TROOPS AND ARMOR THERE WOULD SUPPOSEDLY BE SOME 50000 TROOPS FROM OTHER NATIONS NO ONE SEEMS CLEAR ON WHO WOULD SUPPLY THEM BRITAIN AND FRANCE PRESUMABLY WOULD CONTRIBUTE BUT MOST LIKELY NONNATO TROOPS WOULD BE NEEDED THE EXTENT OF NATO'S COMMAND AND CONTROL WOULD THEN BE SUBJECT TO SOME DOUBT THE FRENCH HAVE INSISTED THAT THE ULTIMATE AUTHORITY OVER THESE TROOPS MUST REST WITH THE UN WHATEVER THAT MEANS THE UN KNOWS NOTHING ABOUT MANAGING A FIELD ARMY THEN THERE IS THE SMALL MATTER OF WHO WOULD PAY FOR THIS FORCE AND HOW LONG IT WOULD HAVE TO STAY IN BOSNIAHERZEGOVINA WHILE SOMEONE TRIED TO FIGURE OUT HOW TO ACHIEVE A LASTING PEACE MUCH STOCK HAS BEEN PLACED IN MILOSEVIC'S ANGRY THREAT TO CUT OFF SUPPLIES TO THE BOSNIAN SERBS FOR REFUSING VANCEOWEN AND MUCH ALSO IN PRESIDENT CLINTON'S THREAT TO ARM THE BOSNIAN MUSLIMS BUT WITH THE MUSLIMS SO NEAR DEFEAT IT IS NOT CLEAR WHAT EFFECT EITHER ACT WOULD HAVE THERE ARE ALWAYS GOOD REASONS TO DOUBT MILOSEVIC'S WORD YESTERDAY SAW NO EVIDENCE HE WAS CARRYING OUT HIS THREAT THERE WAS YET ANOTHER CEASEFIRE AGREEMENT IN BOSNIA BUT THEN THERE HAVE BEEN A LOT OF THOSE PRESIDENT CLINTON'S LIBERAL SUPPORTERS ARE DEMANDING THAT HE DO SOMETHING ABOUT BOSNIA AS THE ABOVE ANALYSIS SUGGESTS A CLEAREYED LOOK WOULD TELL HIM THAT THERE ARE NO EASY ANSWERS DIRECT ACTION RISKS STIRRING UP TROUBLE THROUGHOUT THE VOLATILE BALKANS CERTAINLY IT WOULD BRING US CASUALTIES AT HIS SATURDAY PRESS CONFERENCE THE PRESIDENT COMPLAINED THAT FOREIGN POLICY WAS DISTRACTING HIM FROM HIS MAIN JOB FIXING THE US ECONOMY IN FACT MOST OF THE POLICIES HE HAS SO FAR PUT FORTH WOULD DAMAGE NOT FIX THE US ECONOMY THE MOST IMPORTANT JOB OF ANY US PRESIDENT IS NOT MEDDLING IN THE ECONOMY BUT CONDUCTING A PRUDENT FOREIGN POLICY AS PASSCHENDAELE SHOULD REMIND US THAT IS WHERE THE BIG RISKS LIE 9305100162 930510 MARKETING & MEDIA CHRYSLER'S BUYING PLANNING OF MEDIA IS GIVEN TO BBDO BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH IN A COSTSAVING MOVE CHRYSLER CORP PICKED BBDO NORTH AMERICA TO CONSOLIDATE THE AUTO MAKER'S MEDIA BUYING AND PLANNING PRESENTLY HANDLED BY THREE SEPARATE AD AGENCIES BOZELL INC AND CMEKHBB ADVERTISING WILL CONTINUE TO DEVELOP ADS FOR CHRYSLER AS WILL BBDO A UNIT OF OMNICOM GROUP BUT THE MEDIA PLANNING AND PURCHASING FOR CHRYSLER'S AD AGENCIES WILL BE HANDLED BY A NEW SUBSIDIARY OF BBDO SAID JOHN B DAMOOSE CHRYSLER'S VICE PRESIDENT FOR MARKETING THE THREE AGENCIES WHICH ADVERTISE CHRYSLER'S THREE GROUPS OF BRANDS CHRYSLERPLYMOUTH DODGEDODGE TRUCK AND JEEPEAGLE WILL CONTINUE TO DEVELOP SEPARATE CREATIVE CAMPAIGNS FOR THEIR BRANDS MR DAMOOSE SAID THE CHANGE IN CHRYSLER'S ROUGHLY 400 MILLION AD STRATEGY IS DESIGNED TO REDUCE WHAT MR DAMOOSE CALLED TREMENDOUS WASTE AND INEFFICIENCY IN OUR MEDIA BUYING AN EXECUTIVE COMMITTEE STAFFED BY SENIOR EXECUTIVES FROM ALL THREE AGENCIES AND CHRYSLER WILL MONITOR THE NEW MEDIA BUYING VENTURE WHICH ISN'T INTENDED TO MAKE A PROFIT CHRYSLER SAID SEPARATELY GARY C VALADE WHO WAS APPOINTED CHIEF FINANCIAL OFFICER AT THE AUTO MAKER THURSDAY SAID HIS PROMOTION IS A SIGNAL THAT COSTCUTTING WILL REMAIN A PRIORITY AT CHRYSLER MY BACKGROUND HAS BEEN ON THE CONTROLLER'S SIDE SO MY APPOINTMENT IS A SIGNAL THAT WE'RE KEEPING THE EMPHASIS ON CONTROLLING COSTS MR VALADE SAID MR VALADE SAID HE PLAYED A KEY ROLE AS CONTROLLER IN IMPLEMENTING A MORE THAN 4 BILLION COSTCUTTING PLAN AT CHRYSLER IN THE LATE 1980S HE INTENDS TO KEEP COSTS UNDER CONTROL AS THE AUTO MAKER ROLLS TOWARD WHAT IT HOPES WILL BE FAT YEARS AHEAD FED BY A SLEEK NEW LINE OF PRODUCTS MR VALADE WHO HAS SPENT ALMOST HIS ENTIRE CAREER ON CHRYSLER'S FINANCE STAFF ALSO DESCRIBED HIS APPOINTMENT AS A NOD TOWARD COOPERATION BETWEEN FINANCE AND MANUFACTURING WHEN I FIRST STARTED IN FINANCE THE GUYS WHO GOT PROMOTED WERE THE ONES WHO MADE THE LINE GUYS LOOK THE WORST MR VALADE SAID HE SAID THAT DURING ROUGHLY 10 YEARS WORKING IN PLANTS HE LEARNED THAT COSTSAVINGS CAN BEST BE FOUND THROUGH COOPERATION 9305100161 930510 MANAGER'S JOURNAL HOW TO AVOID A PRICE WAR BY ROBERT A GARDA FRIDAY'S ANNOUNCEMENT THAT UNITED AIRLINES AND DELTA AIR LINES WILL MATCH NORTHWEST AIRLINES' SUMMER FARE DISCOUNTS IS JUST THE LATEST IN A RASH OF PRICE WARS THAT SEEM TO BE BREAKING OUT EVERYWHERE FROM AIRLINES TO DISK DRIVES TO CIGARETTES NEITHER SERVICE NOR RETAIL BUSINESSES ARE IMMUNE ON RARE OCCASION A COMPANY WILL INTENTIONALLY EMBARK ON A PRICE WAR AS PART OF A SOUND STRATEGY FOR INSTANCE A COMPANY INVESTS IN A NEW TECHNOLOGY THAT SLASHES COSTS AND THEN LOWERS PRICES TO GAIN SHARE BUT VERY FEW PRICE WARS GET STARTED SO THOUGHTFULLY AND INTENTIONALLY MORE OFTEN COMPANIES STUMBLE INTO THE PRICE WAR MINEFIELD VICTIMS OF A MISREADING OF COMPETITORS OR MARKET CHANGES OR OF OVERREACTIONS TO THEM ALL TOO OFTEN THIS KIND OF PRICE WAR HAS NO REAL WINNER EXCEPT THE CUSTOMER AND EVEN THE CONSUMER CAN LOSE IN THE LONG TERM AS THE COMBATANTS ARE WEAKENED BY THE BATTLE WHILE MOST EXECUTIVES UNDERSTAND HOW PRICE WARS CAN KILL PROFITS IN THE SHORT TERM THEY OFTEN DON'T REALIZE HOW DEVASTATING AND PROLONGED THE DAMAGE CAN BE PROFITS ARE SENSITIVE TO EVEN SLIGHT DECLINES IN AVERAGE PRICE LEVELS IF YOU'RE FACING AVERAGE PROFIT MARGINS OF 8 THEN A MERE 1 DROP IN AVERAGE PRICES DECREASES YOUR OPERATING PROFIT BY MORE THAN 11 ASSUMING NO INCREASE IN VOLUME FURTHERMORE PRICE ADVANTAGES ARE USUALLY SHORTLIVED LOWERING THE PRICE IS THE EASIEST STRATEGY FOR A RIVAL TO FOLLOW SO A REDUCTION OFTEN MEANS COMPETITORS MAINTAIN THEIR TRADITIONAL MARKET SHARES AT LOWER PRICE LEVELS IN A RECENT SKIRMISH IN BOOK RETAILING A LEADING COMPANY DISCOUNTED PRICES BY 10 AND MAJOR COMPETITORS ALLOWED ONLY ONE DAY TO PASS BEFORE MATCHING THAT DISCOUNT CUSTOMER PERCEPTIONS OF ACCEPTABLE PRICES HOWEVER ARE NOT SHORTLIVED IDEAS ABOUT THE RIGHT PRICE FOR A PRODUCT OR SERVICE LINGER LONG AFTER A PRICE WAR AIRLINES WIDELY OFFERED 199 ROUNDTRIP FLIGHTS FROM NEW YORK TO LOS ANGELES FOR THE FIRST TIME IN YEARS DURING LAST SUMMER'S AIRFARE BATTLE TENS OF THOUSANDS OF TRAVELERS NOW HAVE IT ETCHED IN THEIR MINDS THAT 199 IS THE RIGHT PRICE FOR THAT TRIP AND PROBABLY WON'T MAKE IT AGAIN UNTIL FARES RETURN TO THAT LEVEL FINALLY THE INDUSTRY SHAKEOUTS THAT COMBATANTS IN PRICE WARS HOPE FOR SELDOM OCCUR THE COMPETITORS IN A SEGMENT OF THE ELECTRIC EQUIPMENT INDUSTRY CARRIED ON A PRICE WAR FOR FIVE YEARS EACH ENDURING HUGE ANNUAL LOSSES BUT NOT A SINGLE COMPETITOR WAS FORCED OUT OF THE BUSINESS IF PRICE WARS CAN INFLICT SUCH DAMAGE WHY IS IT THAT SO MANY COMPANIES FIND THEMSELVES ENGAGED IN ONE COMPANIES OFTEN OVERLOOK THE QUALIFIERS AND LIMITATIONS OF COMPETITORS' PRICE DEALS PRICE FEEDBACK USUALLY COMES FROM THE FIELD IN THIS FORM COMPETITOR X IS SELLING AT PRICE Y AND WE NEED TO MATCH THAT PRICE OTHER IMPORTANT INFORMATION LIKE PRICE Y IS GOOD ONLY FOR TWO DAYS ONLY FOR SELECT QUALIFIED DISTRIBUTORS AND ONLY IN TRUCKLOAD QUANTITIES MAY BE ENTIRELY MISSED THE MISREADING COMPANY THEN MATCHES PRICE Y WITHOUT ANY OF THE LIMITATIONS AND THE PRICE WAR BEGINS MISCONSTRUING THE REASONS BEHIND A COMPETITOR'S PRICE CUT MAY ALSO LEAD TO MISCONCEIVED PRICE WARS A PACKAGED FOOD SUPPLIER RECENTLY HAD EXCESS INVENTORY OF A PARTICULAR PACKAGE SIZE THAT WAS BEING ELIMINATED IT DISCOUNTED THE PRICE ON THESE OBSOLETE ITEMS TO EMPTY THE PIPELINE A COMPETITOR MISREAD THE INTENTION OF THE PRICE CUT ASSUMED THAT IT REPRESENTED A STRATEGIC REPOSITIONING AND REACTED WITH A DEEP CUT OF ITS OWN IF THIS COMPETITOR HAD NOT REACTED WITH ITS OWN PRICE CUT PRICES WOULD HAVE RETURNED TO NORMAL ONCE THE OBSOLETE INVENTORY WAS DEPLETED INSTEAD A SEVERE PRICE WAR ERUPTED AND INDUSTRY PROFITS FOR THE YEAR WERE WIPED OUT THE FINAL COMMON MISTAKE THAT COMPANIES MAKE IS A FAILURE TO SEEK A PREMIUM PRICE FOR A NEW OR IMPROVED PRODUCT IF A COMPANY DOES NOT CHARGE A HIGHER PRICE FOR SUPERIOR BENEFITS COMPETITORS WILL BE FORCED TO LOWER PRICES TO KEEP PRODUCT VALUES IN BALANCE GOODYEAR WAS SMART IN CHARGING A PREMIUM FOR ITS SUPERIOR NEW RAIN TIRE IT EVEN GAINED MARKET SHARE HERE ARE SOME RULES FOR AVOIDING COSTLY PRICE WARS AVOID MISREADINGS AND OVERREACTIONS A CLEAR UNDERSTANDING OF THE QUALIFIERS AND COMPARABILITY OF COMPETITIVE PRICE MOVES OFTEN COMES FROM A SALES FORCE THAT IS WELLTRAINED IN PRICE INTELLIGENCE AND FROM DETAILED TRACKING OF COMPETITIVE PRICES BY CUSTOMER GROUP AND REGION IF A PRICE RESPONSE IS NECESSARY SAVVY COMPANIES RESPOND WITH A LESS VISIBLE LEVER SUCH AS TERMS REBATES OR FREIGHT ALLOWANCES THAT DON'T APPEAR ON THE INVOICE THEY ALSO MAKE THE RESPONSE AS LIMITED AS POSSIBLE IN TERMS OF GEOGRAPHY TIME AND PRODUCTS FOR EXAMPLE RJR NABISCO'S RESPONSE TO PHILIP MORRIS'S RECENT PRICE CUT ON MARLBOROS IS EFFECTIVE FOR ONLY 30 DAYS COMMUNICATE PRICE PROPERLY THERE ARE LAWS AGAINST COMMUNICATIONS WHOSE SOLE PURPOSE IS TO PROVIDE PRICE INFORMATION TO COMPETITORS BUT IT IS POSSIBLE TO MINIMIZE THE LIKELIHOOD THAT YOUR CUSTOMERS COMPETITORS AND SALESPEOPLE WILL MISREAD YOUR PRICE LEVEL OR THE REASONS BEHIND A PRICE MOVE IF YOU FIND YOURSELF TAKING ACTION THAT MIGHT BE CONSTRUED AS A SEVERE PRICE REDUCTION BE SURE TO INCLUDE IN NORMAL PRICE COMMUNICATIONS A CLEAR DESCRIPTION OF ALL QUALIFIERS AND LIMITATIONS AND IF APPROPRIATE THE MOTIVE JAWBONING PRICE STABILITY IN SPEECHES AND PUBLICATIONS CAN HELP TOO ENCOURAGE CONSTRUCTIVE RATHER THAN DESTRUCTIVE COMPETITION INDUSTRIES AND COMPANIES THAT AVOID PRICE WARS KEEP THEIR CUSTOMERS FOCUSED ON DIFFERENCES IN BENEFITS RATHER THAN PRICE A VERY SUCCESSFUL MEDICAL SUPPLIES COMPANY REACTS TO EVERY PRICE CUT BY INCREASING BENEFITS SUCH AS SERVICE LEVELS OR SPEED OF DELIVERY A COLLEAGUE RECENTLY SUMMED UP THE ALLCONSUMING PRICE WAR BY LIKENING IT TO HEART DISEASE LIKE A PRICE WAR HEART DISEASE CAN KILL YOU UNLESS YOU CHECK THE RISK BY THE WAY YOU BEHAVE FROM DAY TO DAY YOU INCREASE YOUR RISK OF A WIDESPREAD PRICE WAR WITH EVERY MISREADING OVERREACTION AND FAILURE TO CHARGE AN ADEQUATE PREMIUM FOR SUPERIOR BENEFITS MR GARDA IS A PARTNER IN THE CLEVELAND OFFICE OF MCKINSEY & CO 9305100160 930510 MANAGING BY JULIE AMPARANO LOPEZ ETHICS OFFICERS ARE SPRINGING UP AT MORE COMPANIES ACROSS THE COUNTRY BUSINESSES HIRE THEM TO DEVELOP ETHICS POLICIES LISTEN TO EMPLOYEES' COMPLAINTS CONDUCT TRAINING AND INVESTIGATE ABUSES SUCH AS SEXUAL HARASSMENT FIVE YEARS AGO FEW CORPORATIONS HAD ETHICS OFFICERS TODAY 15 TO 20 OF BIG COMPANIES HAVE THEM SAYS W MICHAEL HOFFMAN DIRECTOR OF THE CENTER FOR BUSINESS ETHICS AT BENTLEY COLLEGE IN WALTHAM MASS AN ETHICS ASSOCIATION CREATED BY MR HOFFMAN HELD ITS FIRST ETHICS OFFICER WORKSHOP FOR 25 MEMBERS IN SEPTEMBER AN ETHICS OFFICER TYPICALLY HOLDS A TITLE FROM DIRECTOR TO VICE PRESIDENT AND EARNS 90000 TO 200000 A YEAR MR HOFFMAN SAYS IN MOST CASES ETHICS OFFICERS REPORT DIRECTLY TO A COMPANY'S CHIEF EXECUTIVE THEY TEND TO BE CONFESSORS CORPORATE CONSCIENCE ENFORCERS AND TEACHERS ALL ROLLED INTO ONE HE SAYS TEXTRON'S BELL HELICOPTER UNIT STARTED AN ETHICS PROGRAM IN 1987 WITH AN OMBUDSMAN OMBUDSMEN USUALLY OPERATE AT A LOWER LEVEL THAN ETHICS OFFICERS AND HANDLE ONLY ETHICS INFRACTIONS AND EMPLOYEE COMPLAINTS BELL HELICOPTER SAYS ITS PROGRAM HAS BECOME MORE COMPREHENSIVE IT NOW EMPLOYS AN ETHICS OFFICER RICHARD GREAVES BESIDES ADDRESSING WORKERS' COMPLAINTS AND QUESTIONS ON ISSUES FROM EXPENSE ACCOUNTS TO POSSIBLE MISCONDUCT BY COLLEAGUES MR GREAVES PROVIDES TRAINING SESSIONS HELPS COORDINATE MEETINGS FOR A SENIOR MANAGEMENT ETHICS COMMITTEE AND MONITORS BROADER CORPORATE ETHICS ISSUES NEW FEDERAL REGULATIONS ENCOURAGE COMPANIES TO FORM ETHICS OFFICES UNDER SENTENCING GUIDELINES THAT TOOK EFFECT IN NOVEMBER A CORPORATION FINED FOR ETHICAL BREACHES SUCH AS BID RIGGING ON FEDERAL CONTRACTS CAN HAVE SUCH PENALTIES REDUCED IF IT HAS AN ETHICS PROGRAM OR OFFICE SOME CONSULTANTS HOWEVER SAY THE ETHICS CRAZE MAY BE FLEETING EVEN COUNTERPRODUCTIVE PETER J NEARY A SENIOR PROGRAM ASSOCIATE FOR THE CENTER FOR CREATIVE LEADERSHIP COLORADO SPRINGS COLO SAYS ETHICS OFFICERS ARE A TERRIBLE IDEA BECAUSE YOU'RE GIVING OWNERSHIP OF THE CORPORATE CONSCIENCE TO ONE PERSON AND IT BECOMES THAT PERSON'S RESPONSIBILITY TO CATCH ETHICS VIOLATIONS HE SAYS THE CHIEF EXECUTIVE SHOULD BE RESPONSIBLE FOR IMPOSING VALUES THROUGHOUT A COMPANY WORKFAMILY PROGRAMS ARE GETTING FRIENDLIER MANY COMPANIES HAVE DECIDED THAT RECASTING THEIR FAMILYSUPPORT PROGRAMS WILL ENABLE THEM TO MARKET THE BENEFITS MORE EFFECTIVELY TO ATTRACT A WIDER RANGE OF EMPLOYEES SOME HAVE DROPPED DEPENDENT CARE AND CHILD CARE IN FAVOR OF THE COMMON WORKFAMILY LABEL OTHERS ARE ADOPTING THE BROADER WORKLIFE NAME SO SINGLE EMPLOYEES ALSO WILL FEEL INCLUDED NEARLY 25 OF COMPANIES HAVE MADE THE DESCRIPTIONS OF THEIR FAMILYSUPPORT PROGRAMS MORE INCLUSIVE IN THE PAST TWO YEARS ACCORDING TO A RECENT SURVEY OF 117 BUSINESSES BY THE CONFERENCE BOARD A RESEARCH GROUP IN NEW YORK COMPANIES FOUND SINGLE EMPLOYEES OR CHILDLESS COUPLES WEREN'T TAKING ADVANTAGE OF THEIR PROGRAMS BECAUSE THEY HAD NO CHILDREN SAYS DANIEL DREYER A CONFERENCE BOARD RESEARCHER THEY ALSO FOUND SINGLE EMPLOYEES WERE COMPLAINING BECAUSE SPECIAL BENEFITS WERE BEING PROVIDED FOR EMPLOYEES WITH FAMILIES INTERNATIONAL BUSINESS MACHINES AND MARRIOTT CHANGED THE NAMES OF THEIR FAMILY PROGRAMS TO WORKLIFE AFTER REALIZING SINGLE EMPLOYEES FELT LEFT OUT MARRIOTT OFFICIALS SAY THEIR COMPANY'S RENAMED PROGRAM IS BETTER RECEIVED BY EMPLOYEES AND HAS MADE SINGLE PEOPLE MORE AWARE OF SUCH BENEFITS THEY MIGHT USE SUCH AS ELDER CARE AND TIMEMANAGEMENT PROGRAMS JL WILLIAMS AN UNMARRIED MARKETING EXECUTIVE AT MARRIOTT SAYS NOW WE FEEL LIKE WE'RE GETTING SOMETHING TOO AT SOME COMPANIES A GOOD PERFORMANCE APPRAISAL NO LONGER EQUALS AN IMMEDIATE PAY RAISE THAT'S BECAUSE MORE EMPLOYERS ARE SEPARATING COMPENSATION REVIEWS FROM PERFORMANCE APPRAISALS AT AMERICAN EXPRESS'S IDS FINANCIAL SERVICES UNIT IN MINNEAPOLIS MOST WORKERS NOW RECEIVE FORMAL PERFORMANCE APPRAISALS AT THE END OF EACH YEAR FOLLOWED BY A SALARY REVIEW ONE DAY TO THREE WEEKS LATER AVON PRODUCTS IN NEW YORK MITRE IN MCLEAN VA AND HARLEYDAVIDSON IN MILWAUKEE ALSO HAVE SEPARATED PERFORMANCE AND SALARY APPRAISALS IT'S USEFUL TO SPLIT THE EVALUATIONS BECAUSE IT LETS EMPLOYEES FOCUS MORE ON CAREER DEVELOPMENT DURING PERFORMANCE APPRAISALS SAYS MANAGEMENT CONSULTANT DAVID LYNN OF BLESSING/WHITE PRINCETON NJ OTHERWISE THEIR FOCUS TENDS TO BE WHAT AM I WORTH' INSTEAD OF HOW CAN I IMPROVE' MR LYNN SAYS AT MITRE A SYSTEMSENGINEERING RESEARCH COMPANY PERFORMANCE APPRAISALS CONSIDER AN INDIVIDUAL'S JOB SKILLS AND CAREER GROWTH SALARY REVIEWS WEIGH A PERSON'S VALUE TO THE CORPORATION FULFILLMENT OF OBJECTIVES AND POTENTIAL TO LEARN NEW SKILLS SAYS JEANETTE CARROLL A MITRE COMPENSATION AND BENEFITS MANAGER AT ALUMAX MILLS PRODUCTS AN ALUMINUM COMPANY IN HINSDALE ILL MANY EMPLOYEES FELT MANAGERS TALKED DOWN TO THEM DURING APPRAISALS PARTLY BECAUSE PAY WAS AT ISSUE SO LAST YEAR ALUMAX SPLIT ITS APPRAISAL PROCESS IN TWO EMPLOYEES CAN BETTER DEAL WITH MANAGERS AND GET MORE OUT OF APPRAISALS WHEN THEY KNOW THEY WON'T BE DISCUSSING PAY SAYS DIANE J FRISCH VICE PRESIDENT OF HUMAN RESOURCES THE NUMBER OF LAWSUITS FILED AGAINST CORPORATE DIRECTORS HAS LEVELED OFF BUT AVERAGE PAYOUTS KEEP RISING ACCORDING TO A SURVEY BY WYATT CO WASHINGTON CONSULTANTS THE AVERAGE PAYMENT ARISING FROM SUCH SUITS ROSE TO 3260000 IN 1992 FROM 1710000 IN 1989 EXECUTIVES ARE GIVING LESS ATTENTION TO FIGHTING DRUG USE BY EMPLOYEES AND FOCUSING MORE ON SEXUAL HARASSMENT CONCLUDES A SURVEY OF 741 MANAGERS BY JACKSON LEWIS SCHNITZLER & KRUPMAN A MANAGEMENT LAW FIRM NEW YORK 9305100159 930510 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST DUALPURPOSE FUNDS WEDNESDAY'S CLOSE N/ANOT AVAILABLE OR NOT APPLICABLE VCONVERTED AT COMMERCIAL RAND RATE ZNOT TRADING ON ANY EXCHANGE 9305100158 930510 BUSINESS BRIEF ALLIED CAPITAL CORP COMPANY IS SEEKING TO BOOST DISTRIBUTIONS TO ITS HOLDERS ALLIED CAPITAL CORP'S PRESIDENT SAID HE HOPES TO BOOST DISTRIBUTIONS TO SHAREHOLDERS THIS YEAR BY IMPROVING CAPITAL GAINS ON INVESTMENTS AND SELLING OFF MORE SMALLBUSINESS LOANS THE SMALLBUSINESS INVESTMENT COMPANY PAYS A QUARTERLY DIVIDEND OF 20 CENTS A SHARE AND DETERMINES AN EXTRA CASH DISTRIBUTION AT THE END OF EACH YEAR FOR 1992 THE EXTRA DIVIDEND WAS 52 CENTS A SHARE ALLIED'S PRESIDENT G CABELL WILLIAMS III SAID HE HOPES TO INCREASE PERSHARE EARNINGS THROUGH INCREASED SALES OF LOANS GUARANTEED BY THE SMALL BUSINESS ADMINISTRATION HE ALSO SAID HE EXPECTS TO INCREASE INCOME FROM SOME LOANS THAT AREN'T ACCRUING INTEREST DUE MR WILLIAMS ADDRESSING SHAREHOLDERS AT THE WASHINGTON COMPANY'S ANNUAL MEETING ALSO SAID HE EXPECTS THE COMPANY TO INVEST SURPLUS CASH OF ABOUT 40 MILLION IN SMALL BUSINESS WHICH COULD PRODUCE RETURNS OF 12 OR MORE THE CASH IS CURRENTLY EARNING ONLY 3 IN SHORTTERM INSTRUMENTS HE NOTED 9305100157 930510 LETTERS TO THE EDITOR DEAR UAW CAT'S DOOR IS STILL OPEN THE FLAWS IN THE ESSAY BY BILL CASSTEVENS SECRETARYTREASURER OF THE UNITED AUTO WORKERS UAW VS CATERPILLAR THE BATTLE CONTINUES COUNTERPOINT APRIL 22 CAN BE SUMMARIZED IN SUBSTANTIALLY LESS SPACE THAN MR CASSTEVENS REQUIRED MR CASSTEVENS'S NOBLE EFFORT TO SAVE THE COMPANY FROM ITSELF IS DIFFICULT TO SQUARE WITH HIS INSISTENCE THAT CATERPILLAR INC SIGN A PATTERN LABOR CONTRACT BASED ON THOSE AT COMPANIES THAT ARE NOT CATERPILLAR'S PRIMARY COMPETITORS THE FACT IS THAT CATERPILLAR'S UAWREPRESENTED EMPLOYEES ARE WORKING UNDER THE TERMS OF THE BEST CONTRACT OFFER IN CATERPILLAR HISTORY AND ONE OF THE BEST IN US MANUFACTURING CATERPILLAR HAS MODERNIZED ITS US PLANTS REORGANIZED TO BE MORE COMPETITIVE AND PURSUED A STRATEGY OF SERVING OFFSHORE MARKETS PRIMARILY FROM US PLANTS THEREBY PRESERVING US JOBS AS A RESULT WE REMAIN A CLEAR WORLD LEADER IN OUR BUSINESSES AND CONTRARY TO MR CASSTEVENS'S ATTEMPT TO MANIPULATE THE FACTS OUR PLANTS ARE MEETING PRODUCTION SCHEDULES WITH PRODUCTS OF HIGHER QUALITY THAN BEFORE THE STRIKE THE UAW LEADERSHIP'S RECORD IS EQUALLY CLEAR UAW MEMBERSHIP IN TOTAL HAS DWINDLED FROM 15 MILLION IN 1979 TO ABOUT 860000 TODAY MR CASSTEVENS'S MISSTATEMENTS SUCH AS COMPARING CATERPILLAR'S STOCK PERFORMANCE WITH THE S&P 500 AND THE S&P INDEX OF DIVERSIFIED MACHINERY ARE TOO NUMEROUS TO CORRECT FOR THE RECORD CATERPILLAR STOCK HAS OUTPERFORMED BOTH INDICES OVER THE PAST YEAR TODAY THE COMPANY REPORTS A PROFIT AS DEMAND FOR OUR PRODUCTS HAS INCREASED IN PART DUE TO THE US ECONOMIC RECOVERY MOST TROUBLING IS MR CASSTEVENS'S INSISTENCE ON DETERMINING WHETHER CATERPILLAR OR THE UAW LEADERSHIP IS WINNING EVERYBODY WINS IF CATERPILLAR HAS A UAW CONTRACT THAT ENABLES US TO COMPETE WITH OUR JAPANESE AND EUROPEAN RIVALS AND TO CONTINUE TO PROVIDE GOOD MANUFACTURING JOBS IN THIS COUNTRY THE DOOR REMAINS OPEN FOR SERIOUS NEGOTIATION WITH THE UAW LEADERSHIP PERHAPS MR CASSTEVENS WHO HAS NOT INITIATED A CONTRACT PROPOSAL FOR 18 MONTHS SHOULD DIRECT HIS EFFORTS TOWARD THE BARGAINING TABLE MR CASSTEVENS'S COLUMN IS A GOOD EXAMPLE OF WHAT IS WRONG WITH UNIONS IN THIS COUNTRY IT IS INTERESTING HOW HE IS ABLE TO CONVINCE HIMSELF AND OTHER UNION MEMBERS THAT THEY ARE SOMEHOW AN OPPRESSED SEGMENT OF SOCIETY THE FACT IS CATERPILLAR IS ONE OF THE HIGHEST PAYING COMPANIES IN THIS COUNTRY HAS A SUPERIOR HEALTH PLAN THAT IS VIRTUALLY CRADLETOGRAVE AND A PENSION PLAN THAT WOULD BURY MOST COMPANIES THESE HIGHLY PAID EMPLOYEES THAT ARE FEELING SO OPPRESSED SHOULD WAKE UP AND LOOK AROUND BUSINESSES ARE FAILING AT AN ALARMING RATE TO HAVE A JOB IS AN ACCOMPLISHMENT TO HAVE A HIGHLY PAID JOB AT A COMPANY THAT IS COMPETITIVE WORLDWIDE IS A GIFT THE USE OF SUCH LANGUAGE AS TRYING TO PERSUADE OUR MEMBERS TO ACCEPT A LOWER STANDARD OF LIVING TRAMPLING ON OUR LEGAL RIGHT AND FORCING WORKERS TO RELY ON TAXPAYERFUNDED GOVERNMENT SUBSIDIES IS JUST EMOTIONAL RHETORIC THE AVERAGE HOURLY WAGE INCLUDING BENEFITS AT CAT IS NEAR 50 IF A WORKER IN DENVER CANNOT FEED HIS FAMILY ON A WAGE LIKE THIS HOW BIG IS HIS FAMILY MR CASSTEVENS DOES NOT SEE THE FOREST FOR THE TREES THE FACT THAT CAT HAS UNDERPERFORMED THE MARKET COULD JUST AS EASILY BE LAID AT THE UNION'S FEET THE COMPANY HAS GONE THOUGH SOME HARD TIMES THE STOCKHOLDERS HAVE SUFFERED BUT THE EMPLOYEES HAVE NEVER TAKEN A STEP BACK IN WAGES OR BENEFITS AS A STOCKHOLDER I COULDN'T AGREE MORE WITH THE COMPANY FOR REJECTING A LABOR AGREEMENT THAT GUARANTEES EMPLOYEES WAGE AND BENEFIT ESCALATION AT A TIME WHEN THE FUTURE IS VERY UNPREDICTABLE THE UNION WOULD BE FAR BETTER OFF TO DROP THE OLD STYLE OF STRONGARMING IN FAVOR OF WORKING TOWARD GOALS THAT MAINTAIN THE LONGEVITY OF THE COMPANY 9305100156 930510 APPLE COMPUTER TAKES INITIAL STEP FOR DEBT OFFERING BY THOMAS WEBER SPECIAL TO THE WALL STREET JOURNAL NEW YORK APPLE COMPUTER INC IS TAKING THE FIRST STEP TOWARD ITS INITIAL OFFERING IN THE BOND MARKET APPLE FILED FOR A 500 MILLION SHELF OFFERING COVERING NOT ONLY DEBT BUT COMMON STOCK AND WARRANTS DESPITE THE BREADTH OF THE FILING THOUGH APPLE DOESN'T EXPECT TO SELL ANY NEW STOCK AT THIS POINT WE HAVE NO PLANS TO ISSUE ANY NEW EQUITY SAID BILL SLAKEY INVESTOR RELATIONS SPOKESMAN FOR APPLE INSTEAD THE COMPUTER MAKER IS CONSIDERING A DEBT OFFERING TO PAY FOR NEW RESEARCH AND DEVELOPMENT FACILITIES NEAR ITS CUPERTINO CALIF HEADQUARTERS APPLE DOESN'T FIT THE TYPICAL PROFILE OF COMPANIES DIPPING INTO THE BOND MARKET IT HAD MORE THAN 1 BILLION IN CASH AT THE END OF MARCH AND NO LONGTERM DEBT OBLIGATIONS THAT'S ONE OF THE CLEANEST BALANCE SHEETS IN THE INDUSTRY SAID KEVIN MCCARTHY A TECHNOLOGY ANALYST AT MABON SECURITIES APPLE IS RELUCTANT TO DRAW ON CASH RESERVES FOR THE BUILDING PROJECT BECAUSE MUCH OF THAT CASH IS OUTSIDE THE US MR SLAKEY SAID REPATRIATING THOSE ASSETS WOULD PRODUCE A SIGNIFICANT TAX BILL HE ADDED WITHOUT MORE DETAILS BOND MARKET PLAYERS ARE RELUCTANT TO SAY MUCH ABOUT THE LIKELY RECEPTION FOR AN APPLE DEBT OFFERING BUT IT IS CLEAR THAT THE COMPANY'S NAME ALONE WILL COMMAND SOME ATTENTION I THINK IT WOULD BE INTERESTING TO LOOK AT SAID SALLY LEE ASSISTANT INVESTMENT DIRECTOR FOR THE WISCONSIN INVESTMENT BOARD IN ITS FAVOR APPLE IS A SUCCESSFUL COMPANY WITH A STRONG BALANCE SHEET YET ANY OFFERING FROM A COMPUTER MAKER IS CERTAIN TO ATTRACT SOME SCRUTINY MS LEE SAID OF ALL AREAS HIGH TECH IS THE MOST DIFFICULT SHE SAID THEY'LL HAVE TO HAVE EXTREMELY GOOD DOCUMENTATION 9305100155 930510 CONCURRENT COMPUTER PLANS PUBLIC OFFERING TO REDUCE ITS DEBT OCEANPORT NJ CONCURRENT COMPUTER CORP SAID IT EXPECTS TO MAKE A PUBLIC OFFERING OF 60 MILLION OF COMMON STOCK AS PART OF A RESTRUCTURING TO REDUCE ITS DEBT THE COMPANY A PROVIDER OF FAULTTOLERANT COMPUTER SYSTEMS SAID IT EXPECTS SHORTLY TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE OFFERING PROCEEDS WOULD BE USED TO PAY OFF 1208 SENIOR SUBORDINATED DEBT TOTALING 66 MILLION ALSO CONCURRENT'S BANK LENDERS HAVE AGREED TO EXTEND LOAN MATURITIES AND LOWER THE INTEREST RATE ON THE COMPANY'S 32 MILLION OF BANK DEBT COMPANY OFFICIALS SAID THAT CONCURRENT INITIALLY WILL SAVE MORE THAN 11 MILLION IN ANNUAL INTEREST EXPENSE AND THAT THE SAVINGS WILL INCREASE IN SUBSEQUENT YEARS IN ADDITION THE COMPANY EXPECTS TO CONVERT ABOUT SEVEN MILLION PREFERRED SHARES TO COMMON CONCURRENT HAS ABOUT 101 MILLION SHARES OUTSTANDING DENIS R BROWN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE PUBLIC OFFERING IS REALLY THE SECOND PART OF A RESTRUCTURING THAT BECAME NECESSARY AS THE COMPANY'S REVENUE SHRANK OVER THE PAST FEW YEARS WHILE ITS DEBT LOAD REMAINED HIGH CONCURRENT PREVIOUSLY EXCHANGED SOME DEBT FOR THE CONVERTIBLE PREFERRED SHARES HE SAID THE COMPANY WHICH MERGED WITH ANOTHER COMPUTER FIRM IN 1988 IN A LEVERAGED TRANSACTION IN THE PAST TOOK A LARGER PROPORTION OF ITS TOTAL BUSINESS FROM MILITARY ORDERS WHICH HAVE BEEN DECLINING A COMPANY SPOKESMAN SAID THAT RECENTLY CONCURRENT HAS HAD A BETTER MIX WITH LESS DEPENDENCE ON DEFENSE WORK FOLLOWING THE MERGER THE COMPANY HAD TOTAL DEBT OF 170 MILLION MR BROWN SAID THE RESTRUCTURING WOULDN'T DILUTE PERSHARE EARNINGS BECAUSE THE INTERESTCOST SAVINGS WOULD MORE THAN OFFSET THE EFFECT OF INCREASED SHARES OUTSTANDING ALSO THE PREFERRED SHARES HAVE BEEN INCLUDED IN EARNINGS STATEMENTS OFFICIALS SAID AS COMMONSHARE EQUIVALENTS 9305100154 930510 US LIKELY TO DELAY ACTION ON BOSNIA UNTIL AFTER SERBS VOTE ON PEACE ACCORD BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AT THE URGING OF ITS ALLIES THE CLINTON ADMINISTRATION IS EXPECTED TO POSTPONE ANY NEW ACTION IN BOSNIA UNTIL AFTER BOSNIA'S SERBS VOTE THIS WEEKEND ON WHETHER TO ACCEPT A PEACE ACCORD WE'VE LET EVERYONE KNOW THAT WE THINK THE REFERENDUM IS JUST ANOTHER PLOY TO GAIN TIME SAID A SENIOR ADMINISTRATION OFFICIAL BUT IT WOULD TAKE A SUPREME EFFORT TO GET THE ALLIES TO DO ANYTHING THIS WEEK BOTH RUSSIA AND CANADA HAVE STRONGLY URGED THE ADMINISTRATION TO WAIT FOR THE RESULTS OF THE VOTE SCHEDULED SATURDAY AND SUNDAY IN SERBIANHELD AREAS OF BOSNIA SEVERAL EUROPEAN COUNTRIES AND THE RUSSIANS ALSO HAVE SAID THEY WANT TO SEE WHETHER A PROMISED CUTOFF OF SUPPLIES FROM SERBIA WOULD HAVE AN EFFECT ON THE FIGHTING OR ON THE BOSNIAN SERBS' WILLINGNESS TO NEGOTIATE A PEACEFUL SETTLEMENT TO THE BLOODY CIVIL WAR A CEASEFIRE THAT BEGAN YESTERDAY BETWEEN THE MUSLIMS AND SERBS IN BOSNIA APPEARED TO BE HOLDING THOUGH FIERCE FIGHTING WAS REPORTED BETWEEN MUSLIMS AND CROATS IN THE TOWN OF MOSTAR US OFFICIALS SAID THAT THEY BELIEVED THE THREAT OF WESTERN MILITARY INTERVENTION MAY HAVE HELPED TO PRODUCE THE TRUCE BUT THAT IT WASN'T LIKELY TO LAST IF THE CEASEFIRE DOES HOLD HOWEVER IT COULD BE USED BY THE EUROPEANS AS A FURTHER ARGUMENT AGAINST MILITARY INTERVENTION EUROPEAN FOREIGN MINISTERS PLAN TO MEET TODAY IN BRUSSELS TO DISCUSS BOSNIA THE ALLIES OFFERED SIMILAR ARGUMENTS FOR DELAY BEFORE THE BOSNIAN SERBS' SELFSTYLED PARLIAMENT REFUSED TO RATIFY THE ACCORD LAST THURSDAY AND INSTEAD TURNED IT OVER TO A NATIONAL REFERENDUM US OFFICIALS ARE HOPING ANOTHER REJECTION BY THE SERBS FINALLY WILL STIFFEN THE EUROPEANS' RESOLVE FOR STRONGER ACTION UNDERLYING THE TALK OF DELAY HOWEVER IS A DISAGREEMENT BETWEEN THE US AND ITS CLOSEST ALLIES ABOUT WHAT SPECIFIC ACTION TO TAKE SECRETARY OF STATE WARREN CHRISTOPHER BACK FROM A SIXDAY VISIT TO EUROPE AND RUSSIA TOLD PRESIDENT CLINTON AT A SATURDAY MEETING THAT THE ALLIES HAD YET TO ACCEPT THE ADMINISTRATION'S PLAN TO LIFT AN ARMS EMBARGO ON BOSNIA'S MUSLIMLED GOVERNMENT AND USE LIMITED AIR STRIKES TO HOLD OFF FURTHER SERB AGGRESSION HE SAID THAT THE ALLIES WERE COMING AROUND TO THE BELIEF THAT SOMETHING MUST BE DONE BUT THAT THEY WERE STILL NOT SURE THAT OUR COURSE IS THE RIGHT ONE SAID ANOTHER SENIOR ADMINISTRATION OFFICIAL PRESIDENT CLINTON DIRECTED MR CHRISTOPHER TO CONTINUE TO PRESS THE ALLIES FOR AGREEMENT ON A COURSE OF ACTION THE US RUSSIANS AND SEVERAL EUROPEAN COUNTRIES MEANWHILE WILL CONTINUE TO PRESS SERBIAN PRESIDENT SLOBODAN MILOSEVIC TO KEEP HIS PROMISE TO CUT OFF ALL BUT HUMANITARIAN SUPPLIES TO BOSNIA'S SERBS EARLY REPORTS SUGGEST THAT THE EMBARGO IS BEING ONLY PARTLY ENFORCED MR CHRISTOPHER HAD HOPED TO RETURN TO EUROPE THIS WEEK TO WORK OUT AN AGREEMENT WITH THE ALLIES ON LIMITED MILITARY ACTION INSTEAD HE WILL SPEAK WITH THE ALLIES REGULARLY BY TELEPHONE AND TRAVEL TO NEW YORK WEDNESDAY TO MEET WITH UN SECRETARY GENERAL BOUTROS BOUTROSGHALI IF THE BOSNIAN SERBS REJECT THE ACCORD THE US PROBABLY WOULD CALL FOR A MEETING WITH ITS TOP ALLIES EITHER AT NATO OR THE UNITED NATIONS TO SETTLE ON A COURSE OF MILITARY ACTION IN BOSNIA ACCORDING TO TOP OFFICIALS IN AN APPEARANCE YESTERDAY ON NBCTV'S MEET THE PRESS REP LEE HAMILTON D IND CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS COMMITTEE SAID THAT IF A VOTE WERE HELD IMMEDIATELY THE CONGRESS WOULD LIKELY REJECT US MILITARY ACTION IN BOSNIA BUT I ALSO EXPECT IF THE PRESIDENT ASSERTS LEADERSHIP AND HE PUTS THIS IN A NATIONAL SECURITY CONTEXT THAT HE WOULD CARRY THE DAY 9305100153 930510 HUNT IS FINED 211000 TO DO COMMUNITY SERVICE MONTGOMERY ALA FORMER REPUBLICAN GOV GUY HUNT WHO WAS REMOVED FROM OFFICE IN APRIL AFTER BEING CONVICTED OF VIOLATING ALABAMA'S ETHICS LAW WAS ORDERED TO PAY 211000 AND TO PERFORM 1000 HOURS OF COMMUNITY SERVICE WORK MR HUNT 59 YEARS OLD WAS ELECTED GOVERNOR IN 1986 AND REELECTED IN 1990 LAST DECEMBER A GRAND JURY INDICTED HIM ALONG WITH THREE ASSOCIATES ON ONE COUNT OF VIOLATING THE STATE'S ETHICS LAW AND 12 COUNTS OF THEFT AND CONSPIRACY MR HUNT WAS CHARGED WITH DIVERTING 200000 FROM HIS 1987 INAUGURATION FUND TO CAMPAIGN ACCOUNTS AND THEN FOR HIS PERSONAL USE ALL THE COUNTS EXCEPT THE ETHICS CHARGE WERE EVENTUALLY DROPPED UNDER THE STATUTE OF LIMITATIONS LAST MONTH A CIRCUIT COURT JURY HERE CONVICTED MR HUNT ON THE ETHICS CHARGE JUDGE RANDALL THOMAS ORDERED MR HUNT TO PAY 200000 IN RESTITUTION A 10000 FINE AND 1000 TO A CRIMEVICTIMS GROUP THE FORMER GOVERNOR WAS ALSO SENTENCED TO FIVE YEARS PROBATION THE FINE WAS THE MAXIMUM AMOUNT POSSIBLE JUDGE THOMAS SAID THE SENTENCE WOULD BE DELAYED PENDING THE OUTCOME OF MR HUNT'S APPEAL 9305100152 930510 RHODE ISLAND HOUSE CLEARS COFFEE MILK AS STATE DRINK PROVIDENCE RI THE RHODE ISLAND HOUSE OF REPRESENTATIVES VOTED TO MAKE COFFEE MILK THE OFFICIAL STATE DRINK CHOOSING THE QUIRKY REGIONAL FAVORITE DESPITE OPPOSITION FROM THE FROZENLEMONADE LOBBY THE LEGISLATION NOW HEADS TO THE SENATE WHICH PASSED ITS OWN VERSION LAST WEEK MEANING THAT COFFEE MILK WILL PROBABLY JOIN THE STATE'S OFFICIAL SYMBOLS WHICH NOW INCLUDE THE QUAHOG THE STATE SHELLFISH AN OFFICIAL TREE THE RED MAPLE AND THE RHODE ISLAND RED THE STATE BIRD THE TEMPESTINACOFFEEPOT CONTROVERSY WAS RECOUNTED IN A PAGE ONE STORY IN THE WALL STREET JOURNAL LAST WEEK COFFEE MILK IS A PECULIARLY RHODE ISLAND DRINK MADE FROM A SWEET DARK COFFEEFLAVORED SYRUP STIRRED INTO MILK THE LEMONADE IN QUESTION IS A SLUSHLIKE TREAT THAT IS A HOT SELLER IN THE SUMMER THE HOUSE APPROVED THE BILL FRIDAY BY A VOTE OF 4936 THE FLOOR DEBATE WAS MOSTLY GOODNATURED THOUGH ONE LEGISLATOR WAS CRITICIZED FOR PARTICIPATING EVEN THOUGH HE OWNS A DEL'S FROZEN LEMONADE FRANCHISE IN NEWPORT MINDFUL OF A POTENTIAL CONFLICT OF INTEREST THE LAWMAKER RECUSED HIMSELF FROM THE VOTE IF WE COULD LEGISLATE 90DEGREE WEATHER NOW THAT WOULD FINANCIALLY BENEFIT ME HE SAID 9305100151 930510 EUROPEAN AIRLINE PLAN WOULD USE THREE HUBS STOCKHOLM MORE DETAILS EMERGED FRIDAY CONCERNING PLANS BY FOUR EUROPEAN AIRLINES TO FORM ONE OF THE CONTINENT'S LARGEST CARRIERS JAN CARLZON CHIEF EXECUTIVE OF SCANDINAVIAN AIRLINES SYSTEM SAID SAS SWISSAIR AUSTRIAN AIRLINES AND KLM ROYAL DUTCH AIRLINES WOULD USE A THREEHUB SYSTEM FOR INTERCONTINENTAL FLIGHTS THE SWEDISH NEWS AGENCY TT QUOTED HIM AS TELLING SAS PERSONNEL THAT THE COPENHAGEN AIRPORT WOULD SERVE FLIGHTS TO NORTHEAST ASIA MAINLY JAPAN AND CHINA AMSTERDAM WOULD HANDLE FLIGHTS TO NORTH AND SOUTH AMERICA FLIGHTS TO AFRICA SOUTHEAST ASIA AND PARTS OF SOUTH AMERICA WOULD GO THROUGH ZURICH OTHER CAPITALS SERVED BY THE JOINT COMPANYSTOCKHOLM OSLO AND VIENNAWOULD FEED TRAFFIC TO THE MAIN HUBS THE AUSTRIAN CAPITAL WOULD HANDLE SOME MIDDLE EAST DESTINATIONS SAS WOULD RETAIN DIRECT ROUTES TO THE US FROM STOCKHOLM MR CARLZON SAID THE AIRLINES ARE DISCUSSING A POSSIBLE MERGER BY 1997 TO INCREASE THEIR COMPETITIVENESS AFTER THE EUROPEAN CIVIL AVIATION MARKET IS DEREGULATED 9305100150 930510 CORPORATE FOCUS GTE SLOW TO JOIN TELEPHONE INDUSTRY REFINANCING RUSH COST OF CALLING ITS MANY SMALL BONDS OFTEN OUTWEIGHS INTEREST SAVINGS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL BY MOST COUNTS GTE CORP IS MANAGING ITS BALANCE SHEET WITH STATEOFTHEART STRATEGIES BUT THE NATION'S LARGEST LOCAL TELEPHONE COMPANY IS SLOW OUT OF THE GATE WHEN IT COMES TO REFINANCING OUTSTANDING HIGH COUPON BONDS WITH TODAY'S LOW INTEREST RATES ALTHOUGH THE STAMFORD CONN COMPANY HAS REFINANCED SOME HIGHCOUPON ISSUES THE AMOUNT ON TAP FOR THE REMAINDER OF THIS YEAR IS MODEST COMPARED WITH THE POOL OF ISSUES GTE COULD CALL AND IT WOULD LAG BEHIND THE SURGE OF REFINANCING BY OTHER TELEPHONE COMPANIES GTE HAS NEARLY 15 BILLION OF REGIONAL TELEPHONE COMPANY BONDS THAT CAN BE CALLED FROM HOLDERS WHO RECEIVE ANNUAL INTEREST COUPONS OF 9 OR MORE THERE ARE 25 ISSUES FROM THE 40 MILLION 9 GENERAL TELEPHONE CO OF OHIO BOND DUE IN 2006 TO THE 75 MILLION GTE SOUTHWEST INC 1175 BOND DUE IN 2015 THE LARGE NUMBER OF RELATIVELY SMALL BONDS ISSUED BY 12 ENTITIES SUCH AS GENERAL TELEPHONE CO OF FLORIDA MAY BE ONE REASON GTE IS LESS AMBITIOUS THAN THE SEVEN FORMER BELL OPERATING COMPANIES WHOSE BONDS ON AVERAGE ARE CONSIDERABLY LARGER ALSO GTE'S ATTENTION LATELY HAS BEEN FOCUSED ON IMPROVING ITS TRIPLEB PARENTCOMPANY BOND RATING FROM STANDARD & POOR'S CORP TO THE A LEVEL MAINTAINED BY OTHER AGENCIES IT IS DOING SO BY SELLING ASSETS TO AGGRESSIVELY REDUCE ITS LONGTERM DEBT LOAD WHICH AT YEAR'S END WAS NEARLY 61 BILLION FOR THE PARENT AND 81 BILLION FOR THE HIGHERRATED SUBSIDIARIES AT THE SAME TIME HOWEVER IT COULD BE STEPPING UP THE PACE OF CALLING IN BONDS AND ISSUING NEW ONES AT TODAY'S HISTORICALLY LOW RATES SAY ANALYSTS OBVIOUS CANDIDATES ARE THE SIX SUBSIDIARY ISSUES TOTALING 385 MILLION PAYING 10 OR ABOVE GTE HAS A NEARMONOPOLY IN DOUBLEDIGIT COUPON DEBT IN THIS INDUSTRY SAYS A TELEPHONE ANALYST AT A DEBT RATING AGENCY IT'S A PUZZLE TO ME WHY THEY ARE NOT REFINANCING NOT ALL THE ISSUES BELOW 10 WOULD BE ECONOMIC TO CALL GIVEN THE RULE OF THUMB IN THE TELEPHONE INDUSTRY THAT INTEREST SAVINGS SHOULD BE AT LEAST 15 TO 2 PERCENTAGE POINTS ANNUALLY TO OFFSET THE COSTS OF CALLING IN BONDS AND REFINANCING ANALYSTS SAY GTE'S TELEPHONE UNITS COULD RAISE FIVEYEAR MONEY AT ABOUT 6 ANNUALLY AND LONGTERM FUNDS FOR LESS THAN 8 REFINANCING 1 BILLION OR MORE OF BONDS HOWEVER WOULD REQUIRE A LARGE ONETIME ADJUSTMENT TO THIS YEAR'S EARNINGS BECAUSE INVESTORS ARE PAID A PREMIUM ABOVE PAR FOR BONDS RETIRED BEFORE THEIR STATED MATURITY ANALYSTS SAY GTE'S MANAGEMENT TRIES TO AVOID WHAT IT CALLS NOISE FOR FEAR OF CONFUSING THE MARKET LAST YEAR GTE TOOK AN 80 MILLION CHARGE FOR CALLING IN 14 BILLION OF PARENT COMPANY DEBT BUT THAT WAS PART OF THE LONGTERM DEBTREDUCTION CAMPAIGN GTE'S REFINANCING TO SAVE INTEREST COSTS MOSTLY INVOLVED ISSUES WITH RELATIVELY SHORT MATURITIES WHICH DID NOT BEAR HEFTY CALL PREMIUMS LAST YEAR GTE TOOK A 20 MILLION EARNINGS HIT FOR CALLING 800 MILLION OF TELEPHONE UNIT BONDS THAT MOSTLY HAD ONLY A FEW YEARS UNTIL MATURITY REFINANCING LONGERTERM DEBT IS MORE EXPENSIVE CALLING IN THE 1175 75 MILLION ISSUE MAY SAVE UP TO 3 MILLION A YEAR FOR EACH OF THE REMAINING 22 YEARS BUT IT WILL COST 6 MILLION AS A ONETIME EARNINGS ADJUSTMENT BECAUSE THEY ARE CALLABLE AT 1081 ABOUT 8 PERCENTAGE POINTS OVER PAR ALSO THE BONDS OF SOME UNITS MAY NOT BE CANDIDATES BECAUSE THE UNITS MAY BE UNDER CONSIDERATION AS AN ASSET SALE NOTES CHIEF FINANCIAL OFFICER NICHOLAS TRIVISONNO SOME ANALYSTS SAY GTE MAY HAVE THE LAST LAUGH IF IT STARTS AGGRESSIVELY REFINANCING NOW NICK TRIVISONNO IS ONE OF THE SAVVIER CFOS SAYS LINDA MELTZER OF UBS SECURITIES MAYBE HE'S WAITING FOR THE BOTTOM OF INTEREST RATES THAT'S NOT LIKELY AT LEAST BASED ON WHAT MR TRIVISONNO SAYS MARKET TIMING IS NOT THE WAY GTE OPERATES WE PREFER TO AVERAGE HE SAYS EVEN IF THE COMPANY'S FINANCING DEPARTMENT BELIEVED THE RATE CYCLE WAS AT BOTTOM IT WOULD NOT AGGRESSIVELY MOVE TO CALL BONDS AND ISSUE OTHERS ADDS TREASURER JAMES MURPHY COMPANIES THAT REFINANCED BECAUSE OF FALLING RATES IN 1990 AND 1991 LEFT DOLLARS ON THE TABLE COMPARED WITH WHAT THEY COULD REFINANCE AT TODAY MR TRIVISONNO NOTED HE ALSO BELIEVES GTE'S ANNUAL INTEREST COSTS COMPARE FAVORABLY WITH THOSE OF THE BELL OPERATING COMPANIES AND THAT GTE IS MORE AGGRESSIVE IN ITS COST CUTTING IN OTHER RESPECTS MOREOVER WE COULD POTENTIALLY HAVE A NEW ISSUE PROGRAM THAT IS NOT MANAGEABLE HE SAYS THE COMPANY'S CAPITALRAISING PROGRAM THIS YEAR CALLS FOR GTE AND ITS TELEPHONE UNITS TO RAISE MORE THAN 2 BILLION FROM THE BOND MARKET TO RETIRE MATURING SHORT AND LONGTERM DEBT AND REFINANCE SOME HIGHCOUPON BONDS SOME ANALYSTS AGREE WITH GTE'S APPROACH TIMOTHY CAIN OF FITCH INVESTORS SERVICE NOTES THAT GTE WILL DO WHAT MAKES SENSE AND NOT BE STAMPEDED OTHER TELEPHONE COMPANIES HAVE NOT BALKED AT ADDING TO THEIR BOND ISSUANCE OR TAKING BIG CHARGES FOR REFINANCING MCI COMMUNICATIONS CORP AND AMERICAN TELEPHONE & TELEGRAPH CO WILL DO THAT IN THE SECOND QUARTER PACIFIC TELESIS GROUP PARENT OF PACIFIC BELL HAS CALLED AND REFINANCED 23 BILLION OF BONDS IN THE PAST YEAR WHICH WILL SAVE 20 MILLION IN INTEREST NEXT YEAR SAYS LEROY BARNEY ASSISTANT TREASURER IT WAS AN ABSOLUTE WINNING STRATEGY THAT MINIMIZED RATE RISK HE SAID BY GETTING GOING EARLY AND PACING OURSELVES WE GOT AN AVERAGE RATE DURING A PERIOD OF FALLING RATES SINCE AUGUST NYNEX CORP UNITS HAVE REFINANCED 11 BILLION OF DEBT THAT HAD COUPONS FROM 8 TO 9625 WHEN THE LONG TREASURY BOND GOT SOUTH OF 7 THE MARKET BECAME VERY ATTRACTIVE SAID COLSON TURNER VICE PRESIDENT/TREASURER FEDERAL COMMUNICATIONS COMMISSION FILINGS SHOW THAT THE BELL OPERATING COMPANIES ON AVERAGE REDUCED INTEREST EXPENSE LAST YEAR TO A GREATER DEGREE THAN GTE'S TELEPHONE UNITS SAYS THOMAS COYLE OF COYLE RESEARCH LAKE BLUFF ILL OTHER ANALYSTS BELIEVE GTE SHOULD NOT BE CONCERNED ABOUT ONETIME EARNINGS ADJUSTMENTS OR OVERLOADING THE MARKET WITH NEW BONDS ROBERT MORRIS OF GOLDMAN SACHS & CO SAYS THERE'S ENOUGH EVIDENCE THAT THE STOCK MARKET LOOKS RIGHT THROUGH ADJUSTMENTS TO EARNINGS WALID CHAMMAH MANAGING DIRECTOR IN CHARGE OF CAPITAL MARKETS FOR FIRST BOSTON CORP ADDS THAT IF GTE EXPECTS TO RAISE 2 BILLION THIS YEAR THE MARKET COULD HANDLE AN EXTRA 1 BILLION GTE COULD GET SOME PRESSURE TO REFINANCE FROM STATE UTILITY COMMISSIONS ONE REASON TELEPHONE COMPANIES HAVE TRADITIIONALLY BEEN MORE ALERT TO REFINANCING THAN THE AVERAGE INDUSTRIAL COMPANY SOME COMMISSIONS SUCH AS TEXAS EXPECT COMPANIES TO SAVE MONEY WHEREVER POSSIBLE AND FACTOR THE EXPECTATION OF REFINANCING WHEN CONSIDERING THE LIMITS ON TELEPHONE CHARGES AMERICAN TELEPHONE & TELEGRAPH CO TOOK A SPECIAL CHARGE AGAINST EARNINGS IN THE FIRST QUARTER FOR REFINANCING HIGHCOUPON DEBT THAT WAS REDEEMED IN THE SECOND QUARTER YESTERDAY'S CORPORATE FOCUS ARTICLE ON GTE CORP INCORRECTLY SAID THAT AT&T PLANNED TO TAKE THE CHARGE IN THE CURRENT QUARTER 9305100149 930510 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS ALL INITIAL US PUBLIC OFFERINGS THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED SEVEN NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING THE BIG BOARD BEGAN TRADING EW BLANCH HOLDINGS INC MINNEAPOLIS A REINSURANCE CONCERN UNDER EWB INTERPOOL INC PRINCETON NJ A LESSOR OF DRY CARGO CONTAINERS AND CONTAINER CHASSIS UNDER IPX AND REINSURANCE GROUP OF AMERICA INC ST LOUIS A REINSURANCE COMPANY UNDER RGA IT ALSO BEGAN TRADING AMERICAN DEPOSITARY SHARES OF BUENOS AIRES EMBOTELLADORA SA A BOTTLER OF PEPSICO INC PRODUCTS IN ARGENTINA UNDER BAE BUENOS AIRES EMBOTELLADORA CURRENTLY IS TRADED IN THE ARGENTINE MARKET THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET SYSTEM ABSOLUTE ENTERTAINMENT INC GLEN ROCK NJ A DEVELOPER AND PUBLISHER OF INTERACTIVE ENTERTAINMENT SOFTWARE UNDER ABSO ELECTRONIC RETAILING SYSTEMS INTERNATIONAL INC WILTON CONN A DEVELOPER AND SUPPLIER OF SHELF LABELING SYSTEMS UNDER ERSI FIDELITY NEW YORK FSB GARDEN CITY NY A FEDERALLY CHARTERED SAVINGS BANK UNDER FDNY 3DO CO SAN MATEO CALIF A COMPANY FORMED TO DEVELOP A PLATFORM FOR HOME ENTERTAINMENT TECHNOLOGY UNDER THDO THE NATIONAL MARKET SYSTEM ALSO BEGAN TRADING SHARES OF EDUCATION ALTERNATIVES INC MINNEAPOLIS A MANAGER OF PUBLIC SCHOOLS UNDER EAIN EDUCATION ALTERNATIVES PREVIOUSLY TRADED ON THE NASDAQ SMALLCAP MARKET THE FOLLOWING COMPANIES PREVIOUSLY TRADED ON THE PINK SHEETS AND NOW WILL TRADE ON THE NATIONAL MARKET SYSTEM BANCFIRST OHIO CORP ZANESVILLE OHIO A BANK HOLDING COMPANY UNDER BFOH AND SUMMIT BANCSHARES INC FORT WORTH TEXAS A BANK HOLDING COMPANY UNDER SBIT THE AMERICAN STOCK EXCHANGE BEGAN TRADING IN BANK OF SOUTHINGTON SOUTHINGTON CONN A FEDERALLY INSURED BANK UNDER BSO THE SHARES WERE PREVIOUSLY TRADED OVER THE COUNTER THE PACIFIC EXCHANGE ALSO BEGAN TRADING OPTIONS ON THE FOLLOWING COMPANIES TCBY ENTERPRISES INC LITTLE ROCK ARK AND VIKING OFFICE PRODUCTS INC LOS ANGELES THE PHILADELPHIA STOCK EXCHANGE WILL BEGIN TRADING OPTIONS ON TOLL BROTHERS INC HUNTINGTON VALLEY PA TODAY 9305100148 930510 FINANCING BUSINESS INFINITY BROADCASTING CORP INFINITY BROADCASTING CORP NEW YORK ISSUED MORE THAN 32 MILLION SHARES INCLUDING SHARES FROM EXERCISE OF WARRANTS RAISING ABOUT 90 MILLION TO BE USED TO FINANCE FUTURE ACQUISITIONS THE OWNER AND OPERATOR OF MAJORMARKET RADIO STATIONS MADE A PUBLIC OFFERING OF 25 MILLION CLASS A SHARES AT 3325 EACH AND ISSUED AN ADDITIONAL 746695 SHARES AFTER EXERCISE OF WARRANTS UNDERWRITERS WERE GRANTED AN OVERALLOTMENT OPTION OF UP TO 375000 SHARES INFINITY CURRENTLY HAS ABOUT 65 MILLION CLASS A SHARES OUTSTANDING IT PREVIOUSLY SAID IT HAD DISCUSSIONS WITH SEVERAL ACQUISITION CANDIDATES BUT HAS NO AGREEMENTS EXCEPT THE PREVIOUSLY ANNOUNCED DEAL TO ACQUIRE WIPAM IN PHILADELPIA INFINITY CLASS A SHARES CLOSED FRIDAY AT 3450 UP 75 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9305100147 930510 FINANCING BUSINESS GENERAL SIGNAL CORP GENERAL SIGNAL CORP STAMFORD CONN SAID IT PLANS A PUBLIC OFFERING OF 18 MILLION SHARES AND WILL USED PROCEEDS TO PAY OFF DEBT THE MAKER OF INSTRUMENTS AND CONTROLS FOR VARIOUS INDUSTRIES SAID THE PROCEEDS ALSO WOULD BE USE FOR GENERAL CORPORATE PURPOSES THE OFFERING INCLUDES AN OVERALLOTMENT OPTION OF 270000 SHARES FOR UNDERWRITERS GENERAL SIGNAL SHARES CLOSED FRIDAY AT 6275 DOWN 1 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9305100145 930510 FINANCING BUSINESS ACC CORP ACC CORP ROCHESTER NY SAID ITS CANADIAN UNIT ACC TELENTERPRISES LTD FILED WITH THE ONTARIO SECURITIES COMMISSION TO OFFER TWO MILLION COMMON SHARES THE PROPOSED OFFERING REPRESENTS 30 OF THE UNIT THE COMPANY SAID THE TELECOMMUNICATIONS SERVICES CONCERN HAS YET TO DETERMINE A PERSHARE PRICE IT DECLINED TO SAY WHY IT OPTED TO SELL A STAKE IN THE UNIT BUT THEO K LEVY AN ANALYST WITH SAGE RUTTY & CO SAID THE CANADIAN UNIT COULD USE FUNDS FROM THE OFFERING FOR ACQUISITIONS AS CONSOLIDATION CONTINUES THERE NESBITT THOMSON INC IS LEAD UNDERWRITER 9305100144 930510 THERMO POWER SAYS ITS RESULTS IMPROVED IN PERIOD BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL WALTHAM MASS THERMO POWER CORP WILL REPORT SHARPLY IMPROVED RESULTS FOR THE FISCAL SECOND QUARTER ENDED APRIL 3 REFLECTING ITS ACQUISITION OF A MANUFACTURER OF COMMERCIAL REFRIGERATION SYSTEMS ITS CHIEF EXECUTIVE OFFICER SAID MARSHALL J ARMSTRONG ALSO SAID THE COMPANY IS EVALUATING TWO POTENTIAL ACQUISITIONS ONE IN THE ENGINE BUSINESS AND ANOTHER IN REFRIGERATION HE DECLINED TO OFFER OTHER DETAILS MR ARMSTRONG WHO ALSO SERVES AS CHAIRMAN ESTIMATED SECONDQUARTER NET AT 416000 OR FOUR CENTS A SHARE COMPARED WITH A LOSS OF 6000 OR LESS THAN ONE CENT A SHARE ON FEWER SHARES LAST YEAR HE SAID SECONDQUARTER REVENUE MORE THAN DOUBLED TO ABOUT 187 MILLION FROM 82 MILLION THE NEW UNIT FES INC ACQUIRED IN OCTOBER FOR 135 MILLION CONTRIBUTED ABOUT 11 MILLION OF THE ADDED REVENUE MR ARMSTRONG SAID OPERATING INCOME IMPROVED IN ALL DIVISIONS MR ARMSTRONG SAID IN AN INTERVIEW AND WE EXPECT AT LEAST TO MAINTAIN THAT PACE FOR THE YEAR THERMO ELECTRON CORP HOLDS A 52 STAKE IN THERMO POWER THERMO POWER MAKES NATURAL GASFUELED COGENERATION AND COMMERCIAL COOLING AND REFRIGERATION UNITS AND MARINE ENGINES AND IS DEVELOPING LOWEMISSION NATURAL GASPOWERED VEHICLES PUMPS COMPRESSORS AND ELECTRIC GENERATORS MR ARMSTRONG SAID THE COMPANY IS POISED TO TAKE ADVANTAGE OF SEVERAL TRENDS INCLUDING INCREASING FLEET PURCHASES OF NATURAL GASPOWERED VEHICLES AND GASPOWERED REFRIGERATION USING AMMONIA INSTEAD OF ATMOSPHEREDAMAGING CHLOROFLOUROCARBONS SUCH AS FREON MR ARMSTRONG TOOK OVER THERMO POWER IN 1991 WHEN IT WAS KNOWN AS TECOGEN AND WAS AN UNPROFITABLE COMPANY FOCUSED LARGELY ON CONTRACT RESEARCH NOW HE SAID WE'VE REBUILT THE COMPANY AROUND BASIC STABLE BUSINESSES IN ENGINES AND INDUSTRIAL REFRIGERATION THAT ARE GENERATING REVENUE AND PROFIT THAT WE'RE USING TO FUND NEW DEVELOPMENT MR ARMSTRONG NOTED THAT THE FES UNIT'S SALES WERE UP 9 FROM THE YEARBEFORE QUARTER AND THAT THE CRUSADER MARINE ENGINE BUSINESS ACQUIRED LAST YEAR FROM THERMO ELECTRON ENJOYED A 20 SALES RISE CRUSADER ALSO MAKES NATURAL GAS ENGINES AND IS BEING USED AS A MANUFACTURING RESOURCE FOR OTHER PROJECTS 9305100143 930510 ECONOMY DATA FOR APRIL SHOW WARINESS ON HIRING PLANS UNCERTAINTY ON ECONOMY TAX PROPOSALS ARE CITED FOR SLUGGISH JOB GROWTH BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON UNCERTAINTY ABOUT THE ECONOMY AND PRESIDENT CLINTON'S TAX AND HEALTH PROPOSALS APPEARS TO BE KEEPING EMPLOYERS LEERY ABOUT ADDING WORKERS APRIL'S SLUGGISH JOB GROWTH THE LABOR DEPARTMENT SAID 119000 JOBS WERE CREATED LAST MONTH WHILE THE UNEMPLOYMENT RATE HELD STEADY AT 7 ISN'T ENOUGH TO BOOST CONSUMER SPENDING AND GET THE RECOVERY MOVING MORE QUICKLY ANALYSTS SAID THE POSTELECTION EUPHORIA THAT HELPED LIFT THE US ECONOMY LATE LAST YEAR HAS DISSIPATED SAGGING SPIRITS SEEM TO BE DEPRESSING BOTH CONSUMER DEMAND AND HIRING RETURNING THE ECONOMY TO THE DISAPPOINTING PACE THAT MARKED THE FIRST PART OF LAST YEAR SOME ANALYSTS AND BUSINESS LEADERS SAY UNCERTAINTY OVER TAX INCREASES AND THE DIMENSIONS OF THE PRESIDENT'S HEALTHCARE REFORM ARE PARTLY TO BLAME PEOPLE ARE CONCERNED ABOUT WHAT THE GOVERNMENT IS GOING TO DO SAID S D BECHTEL FORMER CHAIRMAN OF BECHTEL GROUP INC THE CONSTRUCTION COMPANY IT AFFECTS THE CONSUMER AND THAT UNCERTAINTY AFFECTS BUSINESS HE SAID BECHTEL GROUP WHICH HAS A WORLDWIDE WORK FORCE OF ABOUT 50000 IS SELECTIVELY HIRING EVEN THE CLINTON ADMINISTRATION ACKNOWLEDGES THAT IT MAY HAVE UNWITTINGLY SLOWED THE ECONOMY THERE ARE BIG UNCERTAINTIES THAT MAY HAVE MADE THE RECOVERY A LITTLE MORE MODEST SAID LAURA TYSON CHAIRWOMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS THAT IS WHY I EMPHASIZE THE NEED TO BRING THE BUDGET PACKAGE THROUGH EXPEDITIOUSLY BUT MS TYSON SAID IT WAS IMPOSSIBLE TO TELL HOW MUCH EXPECTATIONS CONCERNING PRESIDENT CLINTON'S BUDGET PROPOSAL HAVE AFFECTED THE ECONOMY THE BIG FRUSTRATION OF SUCH SLOW JOB GROWTH IS THAT IT HAS COME AS THE ECONOMY CONTINUES TO RECOVER JOB GROWTH ALTHOUGH BETTER THAN IN THE EARLY STAGES OF THE RECOVERY HAS ONLY AVERAGED ROUGHLY 124000 A MONTH SINCE NOVEMBER IN A TYPICAL RECOVERY 200000 TO 300000 JOBS ARE ADDED EACH MONTH PEOPLE ARE STILL GENERALLY FEARING FOR THE LOSS OF THEIR JOBS SAID MICHAEL SULLIVAN CHIEF EXECUTIVE OFFICER OF MERRYGOROUND ENTERPRISES INC A MARYLAND CLOTHING RETAILER FOR TEENS EMPLOYERS ARE HESITANT TO HIRE WORKING EXISTING EMPLOYEES LONGER HOURS AND USING TEMPORARYHELP SERVICES IN LIEU OF HIRING PERMANENT EMPLOYEES THE LABOR DEPARTMENT SAID FACTORY OVERTIME ROSE TO A RECORD 43 HOURS IN APRIL AT THE SAME TIME HOWEVER MANUFACTURERS SLASHED THEIR WORK FORCE BY 65000 THE DECLINES IN FACTORY PAYROLLS IN THE PAST TWO MONTHS HAVE WIPED AWAY ALL THE GAINS MADE IN THE PREVIOUS FOUR MONTHS CONSTRUCTION JOBS ALSO FELL BY 10000 LAST MONTH THAT MEANS ALL THE APRIL JOB GROWTH CAME IN THE SERVICE SECTOR WHICH ADDED 198000 NEW JOBS THESE ARE USUALLY LOWERPAYING JOBS WITH LESS ATTRACTIVE BENEFITS TO REALLY GET THE ECONOMY MOVING AGAIN YOU'VE GOT TO GET PEOPLE BRINGING HOME BIGGER PAYCHECKS SAID DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY WE CREATED JOBS LAST MONTH BUT WE REALLY DIDN'T CREATE PURCHASING POWER ANOTHER REASON CONSUMER SPENDING IS LIKELY TO REMAIN WEAK IS BECAUSE HOURLY EARNINGS ARE FAIRLY STAGNANT WAGES FOR PRODUCTION WORKERS DIDN'T GROW AT ALL IN APRIL STAYING AT 1079 AN HOUR THAT SUGGESTS WORKERS AREN'T GETTING THAT LITTLE EXTRA BOOST TO THEIR PAYCHECKS WHICH MAY ENCOURAGE THEM TO SPEND THE GOOD NEWS FOR EMPLOYERS THOUGH IS THAT WAGE INFLATION IS VERY LOW AND FOR CONSUMERS IT MEANS THAT MANY OF THE GOODS AND SERVICES THEY BUY ARE NOT YET IN DANGER OF BIG PRICE INCREASES SEVERAL TOP BUSINESS EXECUTIVES GATHERED AT A MEETING OF THE BUSINESS COUNCIL IN WILLIAMSBURG VA SUGGESTED THAT INFLATION ISN'T A PROBLEM AT ALL RIGHT NOW THERE IS OVERCAPACITY IN ALMOST EVERY INDUSTRY SAID EDGAR WOOLARD CHAIRMAN OF DUPONT CO SO WE SEE THE LID ON PRICING BEING PRETTY TIGHT JOHN SNOW CHAIRMAN OF CSX CORP SAID OF PRICING PRESSURES THAT SNAKE SEEMS TO BE PRETTY WELL BEATEN OVER THE HEAD RIGHT NOW ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS RICK WARTZMAN CONTRIBUTED TO THIS ARTICLE HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED 9305100142 930510 INTERNATIONAL FOREIGN FIRMS INVITED TO SHANGHAI EXCHANGE SPECIAL TO THE WALL STREET JOURNAL BEIJING CHINA HAS OFFERED SEATS ON THE SHANGHAI STOCK EXCHANGE TO 20 MORE FOREIGN SECURITIES COMPANIES THE OFFICIAL XINHUA NEWS AGENCY SAID THE COMPANIES INCLUDE MERRILL LYNCH HONG KONG SECURITIES LTD NOMURA INTERNATIONAL HONG KONG LTD SUN HUNG KAI INTERNATIONAL SERVICES LTD SWISS BANK INTERNATIONAL SECURITIES CO AND CREDIT LYONNAIS SECURITIES OF FRANCE XINHUA SAID THE 2 1/2YEAROLD EXCHANGE GOT ITS FIRST FOREIGN TRADERS IN APRIL WHEN IT ADMITTED JARDINE FLEMING SECURITIES LTD STANDARD CHARTERED AND BARING BROTHERS THE FOREIGN COMPANIES ARE AUTHORIZED TO TRADE ONLY IN B SHARES WHICH ARE DENOMINATED IN FOREIGN CURRENCY AND SOLD ONLY TO FOREIGNERS MOST OF THE LISTINGS ARE A SHARES DENOMINATED IN CHINESE YUAN AND SOLD ONLY TO CHINESE 9305100141 930510 WHO'S NEWS NEW MILFORD BANK & TRUST CO NEW MILFORD BANK & TRUST CO NEW MILFORD CONN MICHAEL D CARRIGAN WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING JOSEPH JORDAN WHO RESIGNED IN MARCH TO PURSUE OTHER INTERESTS MR CARRIGAN 41 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF LENDING OFFICER SINCE JANUARY JACK W STRAUB CHAIRMAN HAD SERVED AS ACTING PRESIDENT AFTER MR JORDAN'S RESIGNATION NEW MILFORD HAS ABOUT 200 MILLION IN ASSETS 9305100140 930510 MICHELIN WILL CUT 4850 JOBS THROUGH END OF NEXT YEAR SPECIAL TO THE WALL STREET JOURNAL PARIS MANUFACTURE FRANCAISE DES PNEUMATIQUES MICHELIN SA SAID IT PLANS TO CUT 4850 JOBS THROUGH THE END OF 1994 BECAUSE OF THE COLLAPSE IN DEMAND FOR TIRES IN ITS MAIN MARKETS THE COMPANY NOTED HOWEVER THAT ONLY 2950 EMPLOYEES WILL ACTUALLY LEAVE THE COMPANY AS 1900 WILL BE OFFERED THE CHANCE TO RETRAIN FOR OTHER JOBS WITHIN THE GROUP OR WILL BE OFFERED PERMANENT PARTTIME JOBS MICHELIN SAID ITS MAJOR CUSTOMERS IN THE AUTOMOBILE INDUSTRY ARE EXPERIENCING SEVERE DIFFICULTIES AS A RESULT OF WEAK DEMAND CAR PRODUCTION IN FRANCE IN THE FIRST QUARTER FELL 141 FROM A YEAR EARLIER WHILE REGISTRATIONS OF NEW CARS SLUMPED 226 AND ARE EXPECTED TO DROP 10 FOR ALL OF 1993 CAR REGISTRATIONS FOR THE OVERALL EUROPEAN MARKET FELL 179 IN THE FIRST QUARTER AND FRENCH PRODUCTION OF TRUCKS WAS DOWN BY ALMOST ONETHIRD IN THE FIRST THREE MONTHS OF 1993 MICHELIN SAID THAT IN TONNAGE TERMS ITS SALES OF CAR TIRES WERE DOWN 14 IN THE FIRST QUARTER WHILE TRUCKTIRE SALES FELL 24 FROM THE YEAR BEFORE IT IS THE FIRST TIME THAT MICHELIN HAS DISCLOSED THE SIZE OF ITS PAYROLL A MOVE THAT HIGHLIGHTS THE GROUP'S RECENT TREND TOWARD GREATER TRANSPARENCY MICHELIN'S 1992 PROFIT WAS 79 MILLION FRANCS 149 MILLION COMPARED WITH A YEAREARLIER LOSS OF 699 MILLION FRANCS ALTHOUGH THAT REPRESENTS A SUBSTANTIAL COMEBACK IT HIDES THE FACT THAT SECONDHALF LOSSES ALMOST WIPED OUT A FIRSTHALF PROFIT OF 820 MILLION FRANCS THE GROUP HAS SET ITSELF AN OBJECTIVE OF REDUCING ITS OPERATING COSTS BY 35 BILLION FRANCS THROUGH THE END OF 1994 MICHELIN GAVE NO INDICATION OF HOW THE AUSTERITY PROGRAM WILL BE SHARED AMONG THE GROUP'S OPERATING UNITS BUT COMPANY OFFICIALS HAVE INDICATED THAT THE GROUP'S ACTIVITIES IN NORTH AMERICA THE UNITED KINGDOM THE NETHERLANDS ITALY SPAIN AND GERMANY AS WELL AS IN FRANCE WILL ALL BE AFFECTED 9305100139 930510 WHO'S NEWS MEDCROSS INC MEDCROSS INC ST PETERSBURG FLA HENRY TOH VICE CHAIRMAN WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS OPERATOR OF MEDICAL DIAGNOSTIC TECHNOLOGY MR TOH 35 YEARS OLD SUCCEEDS ROBERT M IRVIN WHO RESIGNED TO PURSUE OTHER INTERESTS 9305100138 930510 WHO'S NEWS SELECTIVE INSURANCE GROUP INC SELECTIVE INSURANCE GROUP INC BRANCHVILLE NJ THIS INSURANCE HOLDING COMPANY SAID IT NAMED THREE EXECUTIVE VICE PRESIDENTS FOR PRIMARY CENTERS OF RESPONSIBILITY AS PART OF A MANAGEMENT RESTRUCTURING THE POSITIONS ARE NEWLY CREATED DOMINIC J ADDESSO 39 YEARS OLD IS EXECUTIVE VICE PRESIDENT FOR STRATEGIC BUSINESS UNITS HE WAS PREVIOUSLY CHIEF FINANCIAL OFFICER WALTER H HALLOWELL 50 IS EXECUTIVE VICE PRESIDENT FOR SERVICE AND BRANCH OPERATIONS HE HAD BEEN EXECUTIVE VICE PRESIDENT FOR INSURANCE OPERATIONS THORNTON R LAND 52 IS EXECUTIVE VICE PRESIDENT FOR ADMINISTRATION AND RETAINS HIS DUTIES AS GENERAL COUNSEL AND SECRETARY HE HAD BEEN A SENIOR VICE PRESIDENT 9305100137 930510 WHO'S NEWS KEYCORP KEYCORP ALBANY NY W CHRISTOPHER MAXWELL 49 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF THE BANK COMPANY'S TRUST AND INVESTMENT MANAGEMENT GROUP A NEW POST HE MOST RECENTLY WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CHASE MANHATTAN CORP'S VISTA CAPITAL MANAGEMENT GROUP KEYCORP IS A MULTIREGIONAL BANK HOLDING COMPANY 9305100136 930510 INTERNATIONAL BRITONS HAND PUNISHING LOSS TO TORY PARTY BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON A CRUSHING DEFEAT FOR BRITAIN'S CONSERVATIVE PARTY IN LOCAL ELECTIONS AND A PARLIAMENTARY BYELECTION LAST WEEK SEEMS LIKELY TO FORCE PRIME MINISTER JOHN MAJOR TO RESHAPE HIS GOVERNMENT OR FACE A REVOLT AGAINST HIS CONTINUED LEADERSHIP IN VOTING THURSDAY THE CONSERVATIVES LOST A PARLIAMENTARY SEAT IN NEWBURY AND 15 OUT OF 16 OF THE COUNTY COUNCILS THAT THEY FORMERLY CONTROLLED THE RESULTS WERE A DEVASTATING VERDICT ON MR MAJOR'S RECORD SINCE HIS SURPRISE REELECTION IN APRIL LAST YEAR AND THE HARSHEST PUNISHMENT IN A LOCAL ELECTION FOR THE TORIES THIS CENTURY ALTHOUGH THE RESULTS DON'T IMMEDIATELY THREATEN THE GOVERNMENT'S SURVIVAL THEY REDUCE ITS MAJORITY IN PARLIAMENT TO 19 IF THE 284 SWING AGAINST THE TORIES RECORDED AT NEWBURY WERE TO BE REPEATED AT THE NEXT GENERAL ELECTION IT WOULD PRACTICALLY WIPE OUT TORY REPRESENTATION IN THE HOUSE OF COMMONS WHETHER MR MAJOR CAN RISE TO THE CHALLENGE AND WIN BACK THE CONFIDENCE OF VOTERS REMAINS AN OPEN QUESTION UNTIL NOW HE HAS GIVEN AN IMPRESSION OF DITHERING AND BUMBLING ON ISSUES FROM THE MAASTRICHT TREATY ON EUROPEAN UNION TO HEALTH SERVICE AND EDUCATIONAL REFORM TO REDRESS MATTERS ANALYSTS SAY HE WILL NEED TO TAKE DRASTIC ACTION OVER THE WEEKEND CONSERVATIVE BACKBENCHERS WERE CALLING FOR THE REMOVAL OF UNPOPULAR CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT SOME ALSO MADE CLEAR THAT THEY WOULD LIKE A NUMBER OF OTHER MINISTERS TO GO THE MAIN WINNER IN THURSDAY'S VOTING WAS THE SMALL LIBERAL DEMOCRATIC PARTY WHOSE CANDIDATE AT NEWBURY DAVID RENDEL OVERTURNED A STRONG CONSERVATIVE MAJORITY TO WIN BY MORE THAN 20000 VOTES IN THE COUNTY COUNCIL ELECTIONS THE LIBERAL DEMOCRATS TRIPLED TO THREE THE NUMBER OF ADMINISTRATIONS THEY CONTROL LABOUR MEANWHILE ADDED ONE MORE COUNCIL TO THE 13 IT ALREADY CONTROLLED ALONG WITH NEWBURY THE CONSERVATIVES' ROUT COST THEM A STRING OF COUNTY COUNCILS INCLUDING SOME LIKE SURREY KENT DEVON AND NORFOLK WHERE THEY HAVE RULED UNCHALLENGED FOR DECADES IN MANY COUNTIES NO CLEAR MAJORITY EMERGED LEAVING THE WAY OPEN FOR LABOUR/LIBERAL DEMOCRATIC COALITIONS THE ONLY COUNTY COUNCIL RETAINED BY THE CONSERVATIVES WAS BUCKINGHAMSHIRE A WEALTHY AREA NORTHWEST OF LONDON 9305100135 930510 WHO'S NEWS QUIXOTE CORP QUIXOTE CORP CHICAGO ROBERT D VAN ROIJEN JR PRESIDENT OF TOX FINANCIAL CO WAS NAMED A DIRECTOR OF THIS MAKER OF STENOGRAPHIC EQUIPMENT AND SAFETY DEVICES SUCCEEDING FRANCIS S WILSON JR WHO RESIGNED FOR PERSONAL REASONS 9305100134 930510 CLINTON SEEKS INDUSTRY SUPPORT ON HEALTH PLAN BUT THE DECISION TO INCLUDE WORKERS' COMPENSATION ISN'T ENOUGH SOME SAY BY RICK WARTZMAN AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION'S DECISION TO FOLD WORKERS' COMPENSATION AND MEDICALRELATED AUTO INSURANCE COVERAGE INTO ITS HEALTHCARE REFORM PLAN IS A CLEAR ATTEMPT TO WOO INDUSTRY BUT MANY BUSINESS GROUPS AREN'T SATISFIED I'M HAPPY THAT THEY'RE DISCUSSING THIS PIECE OF IT BUT IT DOESN'T SOLVE THE OVERALL HEALTHCARE PROBLEM SAID JOHN GALLES EXECUTIVE VICE PRESIDENT OF NATIONAL SMALL BUSINESS UNITED WHICH REPRESENTS SOME 65000 COMPANIES HE SAID THE MOVE IS NOT ENOUGH TO OFFSET PRESIDENT CLINTON'S PLEDGE TO MAKE ALL EMPLOYERS PAY FOR PART OF THE COST OF HEALTH INSURANCE FOR THEIR WORKERS JERRY JASINOWSKI PRESIDENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS AGREED I REALLY LIKE THE IDEA HE SAID BUT CERTAINLY THAT IN AND OF ITSELF ISN'T ENOUGH FOR BUSINESSES TO BACK A MANDATE REQUIRING ALL COMPANIES TO BUY THEIR EMPLOYEES HEALTH COVERAGE CONSOLIDATING WORKERS' COMPENSATION AND HEALTHRELATED AUTO INSURANCE INTO A SINGLE BENEFITS PACKAGE WOULD MEAN ONE PLAN WOULD COVER THE COST OF TREATMENT REGARDLESS OF HOW AND WHERE A PERSON IS INJURED ADVISERS TO THE ADMINISTRATION'S HEALTHCARE TASK FORCE HAVE TOLD BUSINESS GROUPS IN THE PAST THAT SUCH A STEP WOULD HELP REIN IN THE 20 BILLION ANNUAL MEDICAL CLAIMS RELATED TO WORKER INJURIES BY CONSOLIDATING THREE INSURANCE SYSTEMS INTO ONE THE ADVISERS CONTEND CONSUMERS AND BUSINESSES COULD SAVE MONEY ON PREMIUMS AND ADMINISTRATIVE DUPLICATION COULD BE ELIMINATED HILLARY RODHAM CLINTON WHO IS LEADING THE HEALTHCARE TASK FORCE FRIDAY DISCLOSED THE DECISION TO TRY TO CHANGE THE SCOPE OF INSURANCE COVERAGE HER REMARKS FOLLOWED A CLOSEDDOOR SESSION IN WILLIAMSBURG VA WITH MEMBERS OF THE BUSINESS COUNCIL A GROUP CONSISTING OF THE CHIEF EXECUTIVES OF THE NATION'S LARGEST CORPORATIONS THOUGH ADMINISTRATION OFFICIALS PREVIOUSLY HAVE SAID THEY WERE CONSIDERING PROPOSING THAT WORKERS' COMPENSATION AND AUTO HEALTH COVERAGE BE BROUGHT INTO THE NEW SYSTEM MRS CLINTON'S COMMENTS WERE THE MOST DEFINITIVE SO FAR WE BELIEVE BASED ON EVERYTHING WE KNOW THAT FOR THE VAST MAJORITY OF BUSINESSES HEALTHCARE REFORM WILL BE A NET WINNER MRS CLINTON SAID THEIR COSTS WILL STABILIZE AND GO DOWN FOR MANY SMALL BUSINESSES THE SAME WILL BE TRUE SHE ADDED PARTLY BECAUSE OF THE TREATMENT OF WORKERS' COMPENSATION AND AUTO COVERAGE BUT NOT EVERYONE IS SO SURE WE'RE HIGHLY SKEPTICAL SAID JOHN MOTLEY A LOBBYIST FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHICH INCLUDES HUNDREDS OF THOUSANDS OF SMALL FIRMS AND IS ONE OF THE MOST OUTSPOKEN OPPONENTS OF THE ADMINISTRATION'S EFFORTS ON HEALTH CARE HE SAID THE NATION'S HEALTH INSURANCE AND WORKERS' COMPENSATION SYSTEMS ARE SCREWED UP AND THIS SIMPLY LOOKS LIKE A WAY TO GET EMPLOYERS TO TAKE RESPONSIBILITY FOR BOTH OF THEM MANY INSURANCE COMPANIES WHICH STAND TO LOSE BUSINESS ARE ALSO SURE TO OPPOSE THE ADMINISTRATION ON THIS ISSUE MEANWHILE LABOR UNIONS WANT TO MAKE CERTAIN THAT NONE OF THE SPECIAL BENEFITS FOR REHABILITATION AND THERAPY AVAILABLE UNDER WORKERS' COMPENSATION COVERAGE WOULD BE ELIMINATED DURING HER MEETING WITH THE BUSINESS COUNCIL MRS CLINTON TALKED ABOUT THE THREAT OF RISING HEALTHCARE COSTS AS WELL AS VARIOUS OPTIONS THE ADMINISTRATION IS REVIEWING TO BRING COSTS UNDER CONTROL MANY OF THE EXECUTIVES NOTING THAT THE FIRST LADY SPOKE EXTEMPORANEOUSLY CAME AWAY IMPRESSED WITH HER KNOWLEDGE OF THE SUBJECT THIS GROUP NEEDED TO HEAR FROM HER DECLARED PAUL ALLAIRE CHAIRMAN OF XEROX CORP AND ONE OF THE FEW DEMOCRATS ON THE BUSINESS COUNCIL HE SAID HER SPEECH SEEMED TO REASSURE THE GROUP THAT THERE'S NOT GOING TO BE ANY SILLY APPROACHES TO PAY FOR EXTENDING HEALTH COVERAGE TO THE NATION'S 37 MILLION UNINSURED NEVERTHELESS THERE ARE STILL A LOT OF QUESTIONS UNANSWERED SAID ROBERT ALLEN THE CHAIRMAN OF AMERICAN TELEPHONE & TELEGRAPH CO 9305100133 930510 ICAHN MAY FACE UPHILL BATTLE IN WINNING SUPPORT FOR HIS SWEETENED BID FOR EII BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CARL ICAHN FACES AN UPHILL BATTLE IN ATTEMPTING TO WREST CONTROL OF EII HOLDINGS INC FROM RIVAL DEALMAKER LEON BLACK DESPITE MR ICAHN'S SWEETENED OFFER FOR EII ANALYSTS SAID MR ICAHN MADE A NEW OFFER APRIL 30 TO GAIN CONTROL OF EII PARENT OF SAMSONITE LUGGAGE CULLIGAN WATER SOFTENER AND MCGREGOR APPAREL WHICH IS EMBROILED IN A BANKRUPTCYLAW DEBT RESTRUCTURING MR ICAHN MADE AN EARLIER OFFER IN JANUARY THE NEW OFFER CALLS FOR MR ICAHN TO PAY 320 MILLION IN CASH FOR 100 OF EII'S EQUITY THE PLAN WOULD FULLY REPAY HOLDERS OF EII'S 527 MILLION IN SENIOR BONDS PLUS INTEREST AND OFFERS NEW BONDS TO HOLDERS OF 698 MILLION IN JUNIOR BONDS AT 70 OF FACE VALUE MR BLACK AND MR ICAHN HAVE BEEN DUELING OVER TERMS OF EII'S DEBT WORKOUT SINCE MID1992 WHEN MR ICAHN ACQUIRED 314 OF THE JUNIOR BONDS MR BLACK ACQUIRED 24 OF THE SENIOR BONDS AND 27 OF THE JUNIOR BONDS AFTER APOLLO ADVISERS LP WHICH HE MANAGES ACQUIRED A PORTFOLIO OF JUNK BONDS HELD BY EXECUTIVE LIFE INSURANCE CO IN EARLY 1992 A PROPOSED RESTRUCTURING AGREED TO BY EII'S CREDITORS' COMMITTEE AND EII MANAGEMENT WOULD ENABLE FUNDS CONTROLLED BY MR BLACK TO GAIN AS MUCH AS 50 OF EII'S EQUITY MR ICAHN HAS CHALLENGED THAT PLAN AS BEING OVERLY GENEROUS TO MR BLACK AND STEVEN GREEN EII CHAIRMAN MAX HOLMES DIRECTOR OF BANKRUPTCY RESEARCH AT SALOMON BROTHERS INC SAID THAT WHILE MR ICAHN'S NEW OFFER EXCEEDS HIS PREVIOUS ONE MR HOLMES BELIEVES IT HAS ONLY A 30 CHANCE OF SUCCESS BECAUSE MR ICAHN HAS CLEARLY WORN OUT HIS WELCOME WITH FEDERAL BANKRUPTCY JUDGE CORNELIUS BLACKSHEAR JUDGE BLACKSHEAR IN SEPTEMBER APPOINTED AN EXAMINER TO STUDY MR ICAHN'S CHARGES THAT MR BLACK CONSPIRED WITH MR GREEN TO GAIN CONTROL OF EII IN EXCHANGE FOR AGREEING TO GIVE MR GREEN A GENEROUS COMPENSATION PACKAGE AND AGREEING NOT TO PURSUE CLAIMS AGAINST FORMER EII OWNER MESHULAM RIKLIS RELATED TO HIS ACQUISITION OF CERTAIN ASSETS FROM EII BUT THE EXAMINER REJECTED MR ICAHN'S CHARGES THE COMPANY'S PLAN GIVES SENIOR BONDHOLDERS 331 MILLION IN CASH 2073 MILLION IN NEW NOTES AND 323 OF THE REORGANIZED COMPANY'S EQUITY IF ALL SENIOR BONDHOLDERS CHOOSE TO RECEIVE NEW STOCK JUNIOR BONDHOLDERS WOULD THEN GET 2927 MILLION IN NEW NOTES AND 647 OF THE EQUITY MR GREEN ALSO GETS A 3 STAKE MR GREEN SAID MR ICAHN'S NEW OFFER IS JUST ANOTHER MOVE TO DELAY THE PROCESS HOPING TO GET MORE FOR HIS BONDS MR ICAHN SAYS THE COMPANY PLAN BADLY MISTREATS THE JUNIORS AND SAID THE CREDITORS' COMMITTEE HAS A FIDUCIARY DUTY TO SUPPORT OUR PLAN MR ICAHN MAY BE ABLE TO BLOCK APPROVAL OF EII'S PLAN BY A REQUIRED TWOTHIRDS VOTE OF BOTH CLASSES OF EII'S DEBT THE VOTE IS TODAY AND A COURT HEARING IS SET FOR MAY 24 BUT THE BANKRUPTCY COURT MAY FORCE ADOPTION OF THE CREDITORMANAGEMENT PLAN ANYWAY IN A CRAMDOWN PROCEDURE OTHERWISE THE COMPANY AND CREDITORS COULD ATTEMPT TO NEGOTIATE A NEW PLAN OR THE JUDGE COULD ALLOW MR ICAHN AND OTHERS TO FILE COMPETING PLANS ROBERT FALK A PRINCIPAL AT MR BLACK'S APOLLO ADVISERS AND CHAIRMAN OF EII'S CREDITORS COMMITTEE QUESTIONED THE GOOD FAITH OF MR ICAHN'S OFFER CONSIDERING ITS LASTMINUTE TIMING CARL HAS MADE MANY PROMISES MANY OFFERS AND WE THINK THERE IS A VERY SUBSTANTIAL RISK THAT AT THE END OF THE DAY HE'S NOT GOING TO BE THERE HE SAID HE ADDED THAT THE CREDITORS' COMMITTEE WHICH MR ICAHN DECLINED TO JOIN HAS BEEN WORKING ON THE PLAN FOR MANY MONTHS MR ICAHN SAYS EII'S PLAN VIOLATES FEDERAL BANKRUPTCY LAW BY PAYING SENIOR BONDHOLDERS MORE THAN THE FULL 648 MILLION VALUE OF THEIR CLAIM WITH INTEREST AT THE EXPENSE OF JUNIOR BONDHOLDERS THAT'S BECAUSE HE CONTENDS THE EII STOCK THE SENIOR BONDHOLDERS ARE TO RECEIVE IS WORTH MORE THAN THE 1455ASHARE VALUE ASSUMED IN THE EII PLAN SALOMON VALUES THE STOCK AT 18 ANOTHER FIRM DABNEY RESNICK & WAGNER INC IN LOS ANGELES PUTS IT AT 2250 IF THE JUDGE WERE TO CONCLUDE THE STOCK IS WORTH MORE THAN ABOUT 2250 A SHARE THE COMPANY PLAN COULDN'T BE APPROVED DARRYL SCHALL AN ANALYST AT DABNEY RESNICK NOTED THAT OTHER JUNIOR BONDHOLDERS HAVEN'T SUPPORTED MR ICAHN'S EARLIER OFFERS THE QUESTION IS WHAT ARE YOU REALLY GETTING THAT'S WHY A LOT OF JUNIOR BONDHOLDERS HAVEN'T STEPPED UP ON HIS BEHALF 9305100132 930510 WHO'S NEWS REMINGTON CHOOSES CUNCO TO BE PRESIDENT BRIDGEPORT CONN REMINGTON PRODUCTS CO APPOINTED F PETER CUNCO TO THE POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER THE ELECTRICSHAVER MAKER ALSO ANNOUNCED THE APPOINTMENT OF JOSEPH CIONI AND TORY KIAM TO THE POSITIONS OF CHIEF FINANCIAL OFFICER AND VICE PRESIDENT OF SALES AND MARKETING RESPECTIVELY MR CUNCO PREVIOUSLY WAS PRESIDENT OF THE SECURITY HARDWARE GROUP OF BLACK & DECKER CORP IN 1988 HE WAS PRESIDENT OF WHAT WAS THEN BRISTOL MYERS CO'S PHARMACEUTICAL GROUP IN CANADA AS CHIEF OPERATING OFFICER HE WILL BE RESPONSIBLE FOR DAYTODAY OPERATIONS OF REMINGTON AND ALL WORLDWIDE SENIOR EXECUTIVES WILL REPORT TO HIM MR CIONI PREVIOUSLY WAS GENERAL MANAGER OF KRAFT GENERAL FOODS INC'S POLLIO DAIRY PRODUCTS SUBSIDIARY HE WILL BE RESPONSIBLE FOR THE COMPANY'S ACCOUNTING TREASURY HUMAN RESOURCE AND SYSTEM AREAS 9305100131 930510 AWARD AGAINST BROKER AND FIRMS UPHELD BY JUDGE BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL TULSA OKLA A FEDERAL JUDGE UPHELD AN ARBITRATION PANEL'S 800000 AWARD INCLUDING 50521750 IN PUNITIVE DAMAGES AGAINST A FORMER BROKER FOR PAINEWEBBER INC A UNIT OF PAINEWEBBER GROUP INC AND MERRILL LYNCH & CO WHOM AN ELDERLY COUPLE ACCUSED OF CHURNING THEIR TRUST ACCOUNT THE BROKER WILLIAM B MICHAELS DENIED WRONGDOING AND HIS ATTORNEYS MOVED FOR RECONSIDERATION OF THE RULING IN COURT DOCUMENTS THE COUPLE ARGUED THAT MR MICHAELS A TULSA BROKER EXCESSIVELY TRADED THEIR ACCOUNT TO GENERATE COMMISSIONS FOR HIMSELF BEN F AND MILDRED KELLEY BOTH 78 YEARS OLD ALSO CLAIM THAT MR MICHAELS TRADED IN SPECULATIVE SECURITIES WITHOUT THEIR CONSENT AND LIQUIDATED THE ACCOUNT TO TRANSFER IT TO MERRILL LYNCH FROM PAINEWEBBER ACCORDING TO COURT RECORDS THE COUPLE CLAIM THEY WERE UNAWARE THAT PAINEWEBBER HAD FIRED MR MICHAELS OR THAT THEY WOULD BE CHARGED AN EXIT FEE RECORDS SAY IN OCTOBER A NATIONAL ASSOCIATION FOR SECURITY DEALERS ARBITRATION PANEL IN CHICAGO AWARDED THE KELLEYS 870000 OF WHICH PAINEWEBBER WAS RESPONSIBLE FOR ABOUT 70000 AND MR MICHAELS FOR THE BALANCE THE ARBITRATORS ALSO AUTHORIZED AN EARLIER SETTLEMENT OF 290000 FROM MERRILL LYNCH TO OFFSET MR MICHAEL'S ASSESSMENT BRINGING HIS SHARE TO ABOUT A HALFMILLION DOLLARS IN MAKING HIS RULING JUDGE JAMES O ELLISON REJECTED THE DEFENDANTS' ARGUMENT THAT THE ARBITRATORS DIDN'T HAVE AUTHORITY TO IMPOSE PUNITIVE DAMAGES MR MICHAELS WHO SAID HE NOW OFFERS SECURITIES THROUGH RAYMOND JAMES FINANCIAL INC CALLED THE DECISION ORWELLIAN ADDING WE'RE GOING TO FIGHT THIS THING TENACIOUSLY AND WE KNOW WE WILL WIN BECAUSE WE DIDN'T DO ANYTHING WRONG HIS ATTORNEYS SAID THEY WILL ASK THE JUDGE TO REEXAMINE ALL THE ISSUES IN THE CASE THE KELLEYS THEY WILL ARGUE DIDN'T EVEN ASK THE ARBITRATORS FOR PUNITIVE DAMAGES PAINEWEBBER IN A STATEMENT ARGUED THAT THE ACCOUNT WAS PROFITABLE FOR THE PLAINTIFFS UNTIL IT LEFT PAINEWEBBER IN 1989 AND ARGUED THAT THE FIRM WAS UNJUSTLY PENALIZED FOR WHAT OCCURRED TO THE CLIENT'S ACCOUNT AFTER IT LEFT PAINEWEBBER THE BROKERAGE HOUSE SAID IT HASN'T DECIDED WHETHER TO FIGHT THE DECISION 9305100130 930510 WHO'S NEWS SONY CORP SONY CORP TOKYO THIS CONSUMER ELECTRONICS COMPANY'S US UNIT SONY CORP OF AMERICA ANNOUNCED SEVERAL APPOINTMENTS IN ITS SALES AND MARKETING DIVISION WATARU OGAWA 46 YEARS OLD WAS NAMED PRESIDENT OF THE RECORDING MEDIA PRODUCTS GROUP HE IS SUCCEEDED AS SENIOR VICE PRESIDENT OF LOGISTICS BY BILL MIDGELY 44 WHO WAS VICE PRESIDENT OF CUSTOMER SERVICES IN CONSUMER SALES MIKE VITELLI 38 WAS NAMED SENIOR VICE PRESIDENT OF SALES AND MARKETING FOR THE BUSINESS AND PROFESSIONAL PRODUCTS GROUP HE WAS SENIOR VICE PRESIDENT AND GENERAL MANAGER OF PERSONAL AUDIO PRODUCTS IN THE CONSUMER PRODUCTS GROUP ANDREW MOUGIS 39 ALSO WILL SERVE AS SENIOR VICE PRESIDENT OF SALES HE WAS SENIOR VICE PRESIDENT OF THE TAPE DIVISION AT THE RECORDING MEDIA GROUP YUKI NOZOE 44 WILL SERVE AS SENIOR VICE PRESIDENT OF MARKETING FOR THE CONSUMER PRODUCTS GROUP HE WAS SENIOR VICE PRESIDENT AND GENERAL MANAGER FOR CONSUMER VIDEO PRODUCTS 9305100129 930510 BUSINESS BRIEF ADVACARE TO REPORT SECONDPERIOD LOSS AFTER UNUSUAL CHARGE DALLAS ADVACARE INC SAID IT TOOK A SUBSTANTIAL UNUSUAL CHARGE IN THE FISCAL SECOND QUARTER ENDED MARCH 31 AND EXPECTS TO REPORT A LOSS FOR THE PERIOD THE COMPANY WHICH PROVIDES ACCOUNTING BILLING AND COLLECTION SERVICES TO HEALTHCARE PROVIDERS ALSO SAID IT RESTATED ITS FIRSTQUARTER LOSS TO 3 MILLION OR 26 CENTS A SHARE FROM THE PREVIOUSLY REPORTED LOSS OF 894000 OR EIGHT CENTS A SHARE THE RESTATEMENT IS DUE TO A CHANGE IN ACCOUNTING FOR UNBILLED ACCOUNTS RECEIVABLE ADVACARE SAID THE SECONDQUARTER LOSS WILL REFLECT FLAT REVENUE OF 185 MILLION FROM A YEAR AGO AND A CHARGE DUE TO LOSSES ON THE SALE OF CERTAIN OPERATIONS AND ADJUSTMENTS TO GOODWILL AND RECEIVABLES A YEAR AGO THE COMPANY POSTED A 11 MILLION NET LOSS OR 30 CENTS A SHARE ADVACARE SAID IT WILL ANNOUNCE SECONDQUARTER RESULTS MAY 11 ITS STOCK CLOSED AT 250 DOWN 25 CENTS IN OVERTHECOUNTER TRADING ON FRIDAY ADVACARE SAID THAT ALTHOUGH SECONDQUARTER REVENUE WILL BE FLAT THE LATEST QUARTER INCLUDES THE RESULTS OF SEVERAL RECENTLY ACQUIRED OPERATIONS AND THEREFORE OUR TOTAL REVENUES ON A NET COMPARATIVE BASIS WILL BE DOWN SIGNIFICANTLY THE PROBLEM SAID CHIEF EXECUTIVE OFFICER BJ RONE IS THAT MUCH OF ADVACARE'S BUSINESS INVOLVES COLLECTING OVERDUE HOSPITAL BILLS WORK THAT TENDS TO COME IN FITS AND SPURTS RONE SAID THE COMPANY IS SEEKING CUSTOMERS FOR ITS YEARROUND BILLING AND ACCOUNTING SERVICES OPERATIONS THAT PROVIDE STEADIER INCOME BECAUSE OF REVENUE DECLINE THE COMPANY SAID IT IS REDUCING COSTS PLANS INCLUDE DIVESTING AND CONSOLIDATING SOME DIVISIONS 9305100128 930510 CHINA'S EXPANSION BECOMES AN ENGINE OF ECONOMIC GROWTH FOR THE REGION DEMAND FOR IMPORTS MAKES MAINLAND A MAJOR MARKET FOR THE FOUR DRAGONS' BY LAURENCE ZUCKERMAN STAFF REPORTER OF THE WALL STREET JOURNAL ASIAN INVESTMENT IS FUELING CHINA'S BREATHTAKING ECONOMIC TRANSFORMATION SO WHAT IS CHINA DOING FOR ASIA IN RETURN THE ANSWER IS A LOT AS THE REST OF THE WORLD REMAINS MIRED IN AN ECONOMIC MALAISE OF SLOW OR NEGATIVE GROWTH CHINA'S RECORDBREAKING EXPANSION QUICKLY HAS BECOME A MAJOR ENGINE OF THE REGIONAL ECONOMY HELPING SUSTAIN AN ANNUAL AVERAGE GROWTH RATE EXCLUDING JAPAN OF 7 IN THE FACE OF AN OVERALL WORLD INCREASE OF ONLY 05 THE STORY IS THAT CHINA'S GROWTH AND HUNGER FOR IMPORTS IS NOW MAKING A SIGNIFICANT IMPACT ON THE EXPORTS OF THE REGION SAYS AJAY KAPUR A SENIOR ECONOMIST AT PEREGRINE BROKERAGE LTD IN HONG KONG AND THAT IMPACT IS LIKELY TO GROW A RECENT WORLD BANK REPORT CONCLUDED THAT CHINA HONG KONG AND TAIWAN AN AREA SOMETIMES REFERRED TO AS GREATER CHINA HAD BECOME THE WORLD'S FOURTH GROWTH POLE AFTER EUROPE NORTH AMERICA AND JAPAN THE THREE TOGETHER ALREADY IMPORT TWOTHIRDS AS MUCH AS JAPAN DOES THE REPORT SAYS AND WILL SURPASS IT BY THE YEAR 2002 IF GROWTH CONTINUES AT THE PRESENT RATE EVEN THEN HOWEVER CHINA STILL WILL BE AT AN EARLY STAGE OF DEVELOPMENT ACCORDING TO THE WASHINGTONBASED DEVELOPMENT BANK MEANING THAT GREATER CHINA COULD POTENTIALLY SUSTAIN A LEADERSHIP ROLE IN GROWTH FOR A VERY LONG TIME CHINA'S POTENTIAL AS A GLOBAL ECONOMIC BEHEMOTH IS BEST ILLUSTRATED BY THE EFFECT IT ALREADY IS HAVING ON ITS NEIGHBORS ESPECIALLY THE FOUR DRAGONS HONG KONG SINGAPORE SOUTH KOREA AND TAIWAN FOLLOWING THE ESTABLISHMENT OF CHINA'S OPENDOOR POLICY IN THE LATE 1970S THE FORCES OF CHANGE WERE FELT FIRST IN HONG KONG DRIVEN BY RISING COSTS THE BRITISH COLONY'S INDUSTRIALISTS TOOK ADVANTAGE OF CHINA'S CHEAP LAND AND LABOR AND BEGAN TRANSFERRING PRODUCTION ACROSS THE BORDER HONG KONG MANUFACTURERS NOW EMPLOY AN ESTIMATED FOUR MILLION WORKERS IN GUANGDONG PROVINCE AND THE MAINLAND HAS BECOME THE COLONY'S LARGEST TRADING PARTNER SURPASSING THE US BY THE END OF THE 1980S AFTER TAIWAN'S NATIONALIST GOVERNMENT EASED ITS RESTRICTIONS ON MAINLAND INVESTMENT THE ISLAND'S BUSINESSES SUFFERING THE SAME COST PRESSURES AS THEIR HONG KONG COUNTERPARTS ALSO BEGAN TO INVEST IN CHINA IN JUST SIX YEARS MORE THAN 8000 TAIWANESE BUSINESSES HAVE MADE INVESTMENTS ON THE MAINLAND ESTIMATED AT A TOTAL OF MORE THAN 10 BILLION NOW SOUTH KOREA IS GETTING INTO THE ACT FORMAL DIPLOMATIC RELATIONS BETWEEN SEOUL AND BEIJING WERE ESTABLISHED ONLY IN AUGUST BUT KOREA ACCOUNTED FOR MORE THAN 9 OF CHINA'S FOREIGN DIRECT INVESTMENT IN 1992 AND WILL EASILY FURNISH MORE THAN 14 OF THE TOTAL IN 1993 ACCORDING TO KEITH FERGUSON REGIONAL ECONOMIST AT WI CARR FAR EAST LTD THESE INVESTMENTS HAVE HELPED HASTEN THE DECLINE OF THE DRAGONS' COMPETITIVENESS IN SUCH TRADITIONAL LABORINTENSIVE INDUSTRIES AS GARMENTS FOOTWEAR AND TOYS BUT THE BLOW HAS BEEN SOFTENED BY THE RESULTING SURGE IN CHINA'S DEMAND FOR THEIR OTHER EXPORTS LAST YEAR FOR EXAMPLE KOREAN EXPORTS TO CHINA INCREASED 895 WHILE SHIPMENTS TO THE US JAPAN AND EUROPE FELL 25 61 AND 51 RESPECTIVELY SINCE 1989 CHINA'S SHARE OF KOREAN EXPORTS HAS MORE THAN DOUBLED TO 59 FROM 23 FOR TAIWAN THE GROWTH HAS BEEN EQUALLY IMPRESSIVE EXPORTS TO CHINA GREW 35 LAST YEAR COMPARED WITH 1991 WHILE EXPORTS TO JAPAN FOR EXAMPLE FELL 33 THE MAINLAND NOW TAKES 8 OF TAIWAN'S TOTAL EXPORTS UP FROM ALMOST NOTHING SIX YEARS AGO SINGAPORE THE WORLD'S FIFTHLARGEST INVESTOR IN CHINA SAW ITS 1992 EXPORTS TO THE MAINLAND JUMP 22 VS TOTAL EXPORT GROWTH OF ONLY 14 BEFORE 1980 THE MOST IMPORTANT MARKET TO TAIWAN WAS AMERICA BUT FOR THE 1990S WE KNOW THE MOST CRITICAL FACTOR IN THE SUCCESS OF TAIWAN'S ECONOMY IS THE MAINLAND YENSHIANG SHIH DIRECTORGENERAL OF TAIWAN'S MEDIUM AND SMALL BUSINESS ADMINISTRATION SAID RECENTLY AND AS THE CHINA BOOM ROLLS ON THE NUMBERS KEEP CLIMBING TAIWAN'S EXPORTS TO CHINA ARE UP 37 IN THE FIRST TWO MONTHS OF 1993 FROM THE YEAREARLIER PERIOD WHILE KOREA'S JUMPED AN ASTOUNDING 161 IN THE FIRST THREE MONTHS OF THIS YEAR SEOUL'S TOTAL EXPORT GROWTH IN THE SAME PERIOD WAS 75 STRIPPING OUT CHINA'S CONTRIBUTION THE FIGURE DROPS TO 37 ESSENTIALLY HALF OF KOREA'S EXPORT GROWTH WAS ACCOUNTED FOR BY CHINA SAYS PEREGRINE'S MR KAPUR CHINA'S ROLE IS EVEN MORE SIGNIFICANT CONSIDERING THE ITEMS IT IS BUYING WHILE THE DRAGONS HAVE LOST THEIR COMPETITIVE EDGE IN LOWWAGE LABORINTENSIVE EXPORTS THEY ALSO ARE FACING STIFF COMPETITION FROM JAPAN THE US AND EUROPE IN HIGHERVALUE CAPITALINTENSIVE EXPORTS SUCH AS CONSUMER ELECTRONICS COMPUTERS AND ROBOTICS BUT CHINA HAS PROVED TO BE A STRONG MARKET FOR INTERMEDIATE GOODS AND HIGHERVALUE CAPITAL GOODS SUCH AS SYNTHETIC FIBER STEEL PLASTICS ELECTRONICS PETROCHEMICALS AND MACHINERY KOREAN STEEL EXPORTS TO CHINA INCREASED MORE THAN 400 LAST YEAR SCRAP METAL IS NOW BEING SHIPPED FROM NORTHEAST CHINA TO THE KOREAN PENINSULA TO BE TRANSFORMED INTO FINISHED STEEL TO FEED THE MAINLAND'S HUNGRY CONSTRUCTION INDUSTRY IN 1992 KOREA EXPORTED 615 AUTOMOBILES TO CHINA SO FAR 1365 CARS HAVE BEEN SOLD IN THE FIRST TWO MONTHS OF 1993 ALONE THIS IS THE OLD STORY ACTUALLY COMING OUT IN THE NUMBERS OLD EXPORTS DECLINING AND NEW HIGHERVALUE EXPORTS ARE INCREASING MR KAPUR SAYS BUT HOW LONG CAN THE BOOM LAST MANY ECONOMISTS WARN THAT A SLOWDOWN IN THE MAINLAND ECONOMY IS ON ITS WAY YOU CANNOT SUSTAIN 12 OR 13 GROWTH RATES FOREVER SAYS SANJOY CHOWDHURY CHIEF ECONOMIST ASIANPACIFIC AT MERRILL LYNCH & CO THE BEST OF THE CYCLE IF YOU WILL IS OVER MR CHOWDHURY AND OTHER ECONOMISTS PREDICT THAT CHINA'S PRESENT IMPORT DEMAND WILL CONTINUE THROUGH THE YEAR BUT BEGIN TO TRAIL OFF IN 1994 BUT THAT MAY NOT NECESSARILY SPELL DISASTER FOR THE REGION'S GROWTH RATE BY THEN RECOVERY IN JAPAN AND EUROPE MAY BE IN FULL SWING CREATING NEW DEMAND FOR THE REGION'S EXPORTS IN ADDITION A SHARP SLOWDOWN IN CHINA LIKELY WOULD DIVERT INVESTMENT BACK TO SOUTHEAST ASIA WHICH HAS BEEN CONSOLIDATING THE HEAVY INVESTMENT IT RECEIVED IN THE LATE '80S AND EARLY '90S WHEN THE WORLD TURNED AWAY FROM CHINA IN THE AFTERMATH OF THE CRACKDOWN ON PROTESTERS IN TIANANMEN SQUARE SATURATED WITH MONEY COUNTRIES SUCH AS THAILAND MALAYSIA AND INDONESIA NOW ARE WORKING TO EXPAND THEIR OVERSTRESSED INFRASTRUCTURES TWO OR THREE YEARS FROM NOW WHEN THOSE PROJECTS ARE FINISHED AND CHINA CANNOT HANDLE ANY MORE GROWTH INVESTORS WILL SHIFT BACK SAYS FRIEDRICH WU VICE PRESIDENT AND HEAD OF ECONOMIC RESEARCH AT THE DEVELOPMENT BANK OF SINGAPORE ASSUMING THAT MUCH OF THAT INVESTMENT WILL BE FROM THE DRAGONS SOUTHEAST ASIA LIKELY WILL BE ABSORBING AN INCREASED PORTION OF THOSE COUNTRY'S EXPORTS THAT WILL BE WELCOME RELIEF FOR BUSINESSES THAT WILL HAVE BY THEN SEEN CHINA'S FURIOUS APPETITE FOR THEIR PRODUCTS FADE 9305100127 930510 WHO'S NEWS U S WEST INC U S WEST INC ENGLEWOOD COLO THIS REGIONAL BELL TELEPHONE COMPANY SAID DICK CHENEY 51 MARY M GATES 63 AND ALLAN D GILMOUR 58 WERE ELECTED TO THE BOARD ADDITIONALLY JACK SPARKS RETIRED AT THE AGE OF 70 MR CHENEY SENIOR FELLOW AT AMERICAN ENTERPRISE INSTITUTE IS A FORMER SECRETARY OF DEFENSE MS GATES IS REGENT OF THE UNIVERSITY OF WASHINGTON MR GILMOUR IS VICE CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER OF U S WEST ALLAN D GILMOUR IS VICE CHAIRMAN OF FORD MOTOR CO AND WAS NAMED TO THE BOARD OF U S WEST INC YESTERDAY'S WHO'S NEWS COLUMN INCORRECTLY SAID MR GILMOUR IS VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF U S WEST 9305100126 930510 VORNADO COMPLETES CONVERSION TO TRUST AFTER SPECIAL MEETING SADDLE BROOK NJ VORNADO INC COMPLETED ITS CONVERSION TO A REAL ESTATE INVESTMENT TRUST LAST WEEK AFTER A SPECIAL SHAREHOLDERS' MEETING VORNADO REALTY TRUST THE SUCCESSOR SAID THE CONVERSION IS A ONEFORONE EXCHANGE OF VORNADO COMMON STOCK FOR VORNADO REALTY TRUST SHARES OF BENEFICIAL INTEREST ALONG WITH THE CONVERSION VORNADO REALTY TRUST PRICED ITS PUBLIC OFFERING OF FIVE MILLION SHARES AT 3550 APIECE UNDERWRITERS HAVE AN OVERALLOTMENT OPTION OF 750000 SHARES A SPECIAL DIVIDEND OF 336 A SHARE PREVIOUSLY ANNOUNCED IS CONTINGENT ON COMPLETION OF THE PUBLIC OFFERING THE DIVIDEND IS TO DISTRIBUTE ACCUMULATED CASH VORNADO SAID THE RECORD DATE FOR THE DIVIDEND IS MAY 13 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 9305100125 930510 SUMITOMO TO SET UP STEEL UNIT TO PROCESS SHEETS COILS IN MEXICO SPECIAL TO THE WALL STREET JOURNAL TOKYO SUMITOMO CORP A MAJOR JAPANESE TRADING HOUSE ANNOUNCED THAT IT HAS SET UP A STEEL SERVICE CENTER SUBSIDIARY IN MEXICO TO PROCESS STEEL COIL AND SHEETS THE COMPANY SAID THE MOVE REFLECTS EXPECTATIONS FOR STRONG GROWTH IN DEMAND BY THE AUTO AND HOME ELECTRONICS SECTORS FOLLOWING THE LAUNCHING OF THE NORTH AMERICAN FREE TRADE AGREEMENT SUMITOMO SAID IT SET UP THE SUBSIDIARY SERVILAMINA SUMMIT MEXICANA SA DE CV IN DECEMBER 1992 WITH A CAPITALIZATION OF 4 MILLION SUMITOMO AND ITS US UNIT SUMITOMO CORP OF AMERICA EACH HOLD A 40 STAKE SUMITOMO CORP DE MEXICO HOLDS THE REMAINING 20 THE NEW COMPANY WILL BEGIN OPERATIONS IN OCTOBER OR NOVEMBER 1993 WITH A TARGET OF PROCESSING 24000 METRIC TONS OF STEEL DURING ITS FIRST YEAR THAT TOTAL IS EXPECTED TO RISE TO 50000 METRIC TONS A YEAR WITHIN FIVE YEARS A METRIC TON IS 220462 POUNDS SUMITOMO'S OVERALL INVESTMENT OF 8 MILLION IN THE VENTURE WILL GO IN PART TO EQUIPMENT SUCH AS A CUTTOLENGTH LINE A SLITTING LINE AND A SHEARING MACHINE THE COMPANY SAID THE NEW COMPANY WILL PROCESS STEEL COIL AND SHEET FOR JUSTINTIME DELIVERY SERVICES HOPING TO MEET RISING DEMAND AS JAPANESE US AND EUROPEAN COMPANIES INCREASE INVESTMENT IN AUTO AND HOME ELECTRONICS EQUIPMENT WITHIN NORTH AMERICA SUMITOMO SAID SUMITOMO SAID IT IS THE FIRST JAPANESE COMPANY TO SET UP A STEEL SERVICE CENTER IN MEXICO 9305100124 930510 DEADLINE FOR RTC TO PURSUE SUITS EXTENDED IN PANEL BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HOUSE COMMITTEE VOTED TO GIVE THE RESOLUTION TRUST CORP MORE TIME TO MOVE AGAINST OFFICERS DIRECTORS LAWYERS AND OTHERS IT BLAMES FOR THE FAILURE OF A SAVINGS AND LOAN ASSOCIATION UNDER THE MEASURE THE S&L CLEANUP AGENCY WHICH HAS LAWSUITS PENDING AGAINST ABOUT 1700 INDIVIDUALS WOULD GET FIVE YEARS INSTEAD OF THREE FROM THE TIME IT TAKES OVER A FAILED THRIFT TO INITIATE A LIABILITY CASE THE PROVISION WAS ADDED BY A 2722 VOTE TO A FUNDING BILL PASSED BY THE HOUSE BANKING COMMITTEE THE PROVISION'S SPONSOR REP JOSEPH KENNEDY D MASS SAID THE RTC IS LOSING THE CHANCE TO RECOVER BILLIONS IN CLAIMS JUST BECAUSE IT IS UNABLE OR UNWILLING TO VIGOROUSLY PROSECUTE CASES THE RTC INSISTS THAT EVERY THRIFT THAT SHOULD HAVE BEEN SUED HAS BEEN SUED BY THE LEGAL DEADLINE AS THE AGENCY ERRS ON THE SIDE OF SUING WHEN TIME IS ABOUT TO RUN OUT BUT ACCORDING TO REP KENNEDY RTC INVESTIGATORS SAY THEY'VE FOUND FRAUD OR NEGLIGENCE IN 80 OF THE S&LS THEY'VE SEIZED BUT HAVE FILED SUITS FOR ONLY 22 LITIGATION WAS CURBED LAST YEAR WHEN THE BUSH ADMINISTRATION CUT HALF OF THE RTC'S PROFESSIONAL LIABILITY STAFF JUST AS THE THREEYEAR LIMIT WAS ABOUT TO RUN OUT ON A LARGE BLOCK OF CASES MR KENNEDY ADDED WITH MORE TIME THE RTC MIGHT DEVELOP EVEN A BETTER CASE IN SOME INSTANCES RTC SPOKESMAN STEVE KATSANOS ACKNOWLEDGED BUT OFTEN HE ADDED SUITS AREN'T FILED BECAUSE NOT ENOUGH EVIDENCE IS AVAILABLE TO WIN THE CASE PROSPECTIVE MONETARY DAMAGES ARE TOO LOW TO COVER LITIGATION COSTS OR A SETTLEMENT IS REACHED BEFORE THE RTC GOES TO COURT THE EXTENDED STATUTE OF LIMITATIONS WOULD APPLY RETROACTIVELY TO CERTAIN CASES INCLUDING THOSE ALLEGING FRAUD GROSS NEGLIGENCE BREACH OF FIDUCIARY DUTY FOR ANY THRIFTS TAKEN OVER BY THE RTC SINCE 1989 9305100123 930510 FRENCH OUTPUT SLIPPED 26 IN FOURTH QUARTER SPECIAL TO THE WALL STREET JOURNAL PARIS FRANCE'S INDUSTRIAL PRODUCTION FELL 26 IN THE FOURTH QUARTER OF 1992 CHIEFLY BECAUSE OF A 75 DROP IN CAR PRODUCTION THE NATIONAL STATISTICS INSTITUTE SAID THE STATERUN DATAGATHERING AGENCY SAID ITS QUARTERLY INDUSTRIAL PRODUCTION INDEX EXCLUDING THE CONSTRUCTION AND PUBLICWORKS SECTOR FELL TO 1106 IN THE LAST QUARTER OF 1992 FROM 1136 IN THE THIRD QUARTER THE AVERAGE LEVEL OF THE INDEX FOR 1992 WAS DOWN 17 COMPARED WITH 1991 AND WAS 35 BELOW THAT OF 1990 THE INSTITUTE SAID THE REDUCTION IN CAR OUTPUT IN THE LAST QUARTER OF 1992 WAS PARTLY RESPONSIBLE FOR A 41 DECLINE IN PRODUCTION OF SEMIFINISHED GOODS 9305100122 930510 SEN D'AMATO'S BROTHER CONVICTED IN UNISYS CASE BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL UNIONDALE NY THE BROTHER OF NEW YORK SEN ALFONSE D'AMATO WAS CONVICTED OF SEVEN COUNTS OF ACCEPTING MONEY FROM A FORMER UNISYS CORP EXECUTIVE TO INFLUENCE THE SENATOR BUT WAS ACQUITTED ON 17 OTHER CHARGES OF MAIL FRAUD ARMAND D'AMATO WAS CONVICTED FRIDAY AFTER A WEEKLONG TRIAL WHICH WAS A SPINOFF OF THE GOVERNMENT'S CONTINUING INVESTIGATION OF BRIBERY AND INFLUENCEPEDDLING AMONG DEFENSE CONTRACTORS DUBBED OPERATION ILL WIND SEN D'AMATO A REPUBLICAN WASN'T CHARGED WITH ANY WRONGDOING AND HIS BROTHER TESTIFIED THAT HE DIDN'T TELL THE SENATOR HE WAS WORKING FOR UNISYS ARMAND D'AMATO FACED 24 COUNTS OF MAIL FRAUD THAT ACCUSED HIM OF TAKING 120500 IN PAYMENTS TO LOBBY THE SENATOR RATHER THAN FULFILL OTHER CONSULTING OBLIGATIONS HE WAS FOUND GUILTY OF SEVEN COUNTS THAT NETTED HIM 32500 ON A PURCHASE ORDER ISSUED IN THE NAME OF HIS MINEOLA NY LAW PARTNER AND DESCRIBING WORK THAT HE NEVER DID HE FACES A MAXIMUM SENTENCE OF FIVE YEARS IN PRISON AND A 250000 FINE ON EACH OF SEVEN COUNTS OF MAIL FRAUD IN A PREPARED STATEMENT SEN D'AMATO SAID HE WAS SADDENED BY THE CONVICTION BUT REMAINS CONVINCED MY BROTHER DID EVERYTHING WITHIN THE LAW AND WILL BE SUCCESSFUL ON APPEAL ARMAND D'AMATO SAID I DIDN'T DO ANYTHING WRONG SO I'M ABSOLUTELY UPSET ABOUT IT THE ASSOCIATED PRESS REPTED HE SAID HIS LAWYER WOULD SEEK AN APPEAL IN JUNE A KEY PROSECUTION WITNESS WAS FORMER UNISYS VICE PRESIDENT CHARLES GARDNER WHO TESTIFIED THAT HE HIRED MR D'AMATO TO GAIN ACCESS TO HIS BROTHER IN A SEPARATE CASE MR GARDNER PLEADED GUILTY IN 1989 TO BRIBING A NAVY OFFICIAL AND WAS SENTENCED TO 32 MONTHS IN JAIL A SPOKESMAN FOR UNISYS IN BLUE BELL PA DECLINED TO COMMENT ON MR D'AMATO'S CONVICTION NOTING THAT THE COMPANY WASN'T CHARGED IN THE CASE THE ILL WIND CHAPTER IS CLOSED THE SPOKESMAN SAID NOTING THAT IN 1991 THE COMPANY SETTLED THE GOVERNMENT'S CHARGES IN THE INFLUENCEPEDDLING SCANDAL BY AGREEING TO PAY AS MUCH AS 190 MILLION IN A CASE INVOLVING ANOTHER BIG GOVERNMENT CONTRACTOR THE US ATTORNEY'S OFFICE IN BROOKLYN HAS BEEN INVESTIGATING GRUMMAN CORP'S INVOLVEMENT IN INFLUENCEPEDDLING AND IMPROPERLY PRESSURING SUBCONTRACTORS TO DONATE TO CERTAIN POLITICAL CAMPAIGNS GRUMMAN OF BETHPAGE NY HAS AGREED IN PRINCIPLE TO PAY THE GOVERNMENT ABOUT 20 MILLION TO RESOLVE THAT INVESTIGATION AND LAW ENFORCEMENT OFFICIALS HAVE INDICATED THAT THEY EXPECT THE COMPANY WILL AVOID CRIMINAL CHARGES BECAUSE IT HAS BEEN COOPERATING WITH THE INQUIRY 9305100121 930510 WALIBI PROFIT SLUMPED IN '92 WHILE REVENUE ADVANCED FROM '91 BRUSSELS WALIBI SA EUROPE'S SECONDLARGEST OPERATOR OF AMUSEMENT PARKS POSTED A 72 PLUNGE IN 1992 PROFIT BUT THAT'S A BETTER PERFORMANCE THAN MANY ANALYSTS HAD EXPECTED NET INCOME FELL TO 54 MILLION BELGIAN FRANCS 17 MILLION FROM 190 MILLION FRANCS IN 1991 REVENUE ROSE 73 TO 246 BILLION FRANCS FROM 229 BILLION FRANCS AS THE NUMBER OF VISITORS REMAINED UNCHANGED AT 38 MILLION EXCLUDING NEW PARKS ACQUIRED DURING 1992 REVENUE SLIPPED 53 THE RESULTS ARE BETTER THAN WHAT WE HAD FEARED LAST SEPTEMBER SAID EDDY MEEUS WALIBI'S FOUNDER AND CHAIRMAN HE BLAMED BAD WEATHER IN THE KEY MONTHS OF AUGUST AND SEPTEMBER ADDING THAT HE SEES NO EVIDENCE INDICATING THAT THE RECESSION AFFLICTING MUCH OF WESTERN EUROPE HAD ANY BIG NEGATIVE IMPACT ON WALIBI'S PROFIT ANALYSTS HAD EXPECTED A 1992 LOSS AT WALIBI A FASTGROWING COMPANY THAT OPERATES 10 AMUSEMENT PARKS IN BELGIUM FRANCE AND THE NETHERLANDS IT SHOWS THAT THIS CAN BE A VERY PROFITABLE BUSINESS EVEN IN A POOR ECONOMIC ENVIRONMENT SAID PIERRE WILLAERT AT THE BRUSSELS BROKERAGE FIRM PUILAETCO POINTING TO WALIBI'S OPERATING PROFIT OF 196 MILLION FRANCS DOWN 56 THE CURRENT YEAR WILL BE A TEST YEAR FOR THE FASTGROWING COMPANY MR WILLAERT ADDED THEY'LL HAVE TO DEMONSTRATE THEY CAN CUT THEIR OPERATING EXPENSES AND THAT THEY'RE RECESSIONPROOF MR MEEUS SAID HE HAS NO REASON TO BELIEVE THIS WILL BE A DIFFICULT YEAR TO THE CONTRARY HE SAID INITIAL 1993 RESULTS ARE ENCOURAGING BUT HE DECLINED TO MAKE ANY PREDICTIONS THE OPENING LAST YEAR OF THE MAMMOTH EURODISNEY PARK NEAR PARIS COULD HAVE HELPED DAMP WALIBI'S 1992 SALES MR MEEUS SAID BUT HE EXPRESSED THE HOPE THAT AT LAST SOME OF THE NINE MILLION PEOPLE WHO VISITED EURODISNEY LAST YEAR WILL WANT A CHANGE THIS YEAR AND OPT FOR A WALIBI VISIT INSTEAD 9305100120 930510 OTC FOCUS BUT SOME REAL GEMS ARE OVERLOOKED BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A BLIZZARD A LOT OF VALUABLE THINGS GET BURIED AND FORGOTTEN SIMILARLY AFTER THE RECENT DELUGE OF INITIAL PUBLIC OFFERINGS THERE ARE A FEW INTERESTING STOCKS HIDDEN UNDER THE PILE WALL STREET HAS SOLD 1051 NEW STOCK ISSUES VALUED AT 502 BILLION OVER THE PAST 28 MONTHS ACCORDING TO SECURITIES DATA CO NOT SURPRISINGLY SOME OF THESE YOUNGSTERS DON'T GET THE ATTENTION THEY DESERVE FOR EVERY MUCHLOVED SNAPPLE THERE ARE A HALFDOZEN OTHER RECENT IPOS THAT LANGUISH ON THE OVERTHECOUNTER MARKET ALL BUT FORGOTTEN TO TRY AND FIND GEMS AMONG THESE OVERLOOKED STOCKS CHARLES RONSON SPENDS MUCH TIME GOING TO COMPANY PRESENTATIONS TALKING TO MANAGEMENT AND TRACKING HUNDREDS OF NEWBORN STOCKS ON HIS DATA BASE MR RONSON A STOCK PICKER AT NEW YORK INVESTMENT FIRM BALESTRA CAPITAL PUBLISHES HIS FINDINGS IN A NEWSLETTER THE IPO VALUE MONITOR THE IPO MARKET IS CHARACTERIZED BY EXTREMES HE SAYS EITHER STOCKS ARE OVERPRICED OR UNDERPRICED IN COMPARISON TO OTHER STOCKS IN THEIR GROUP AND WHEN THEY'RE CHEAP IT IS A GOOD OPPORTUNITY TO BUY SOME PERFECTLY LEGITIMATE COMPANIES THESE DAYS HE SEES A HANDFUL OF GOOD VALUES JUST SITTING THERE HE OFFERS A COUPLE OF IDEAS ON MY SCREEN THAT WE WILL PROBABLY END UP BUYING ENVIROTEST SYSTEMS CORP SOLD 34 MILLION SHARES THROUGH GOLDMAN SACHS ON MARCH 31 FOR 16 EACH THE STOCK HAS SINCE SLIPPED TO 1550 CURRENTLY THE TUCSON ARIZ COMPANY OPERATES 112 INDEPENDENT AUTOMOBILEEMISSIONS TESTING CENTERS IN EIGHT STATES SOME 115 MILLION CARS PASSED THROUGH THE COMPANY'S DIAGNOSTIC LANES LAST YEAR GENERATING 77 MILLION IN REVENUE CHICAGO MIAMI CLEVELAND MILWAUKEE AND NASHVILLE TENN ARE A FEW OF THE CITIES IN WHICH THE FIRM OPERATES HOWEVER WALL STREET IS SKITTISH ABOUT ENVIROTEST NEARLY ALL THE COMPANY'S REVENUE COMES FROM GOVERNMENT CONTRACTS WHICH COULD BE TERMINATED OR WITHDRAWN OTHER THREATS INCLUDE THE POSSIBILITY THAT CAR MAKERS WILL DEVISE POLLUTIONCONTROL SYSTEMS THAT REQUIRE LESS FREQUENT TESTING BUT THERE ARE FEW BETTER PLAYS ON THE CLEAN AIR ACT AND THE CURRENT ADMINISTRATION'S CONCERNS ABOUT THE ENVIRONMENT MR RONSON SAYS THESE GUYS WILL GROW AND GAIN NEW BUSINESS HE PREDICTS THE GOVERNMENT SAYS TESTING HAS TO EXPAND TO QUITE A NUMBER OF STATES THAT HAVEN'T BEEN TESTING MR RONSON LOOKS AT ENVIROTEST'S CONTRACTDEPENDENT EARNINGS THIS WAY ONCE LAWS ARE PASSED BUREAUCRACIES SUCH AS THE ENVIRONMENTAL PROTECTION AGENCY JUSTIFY THEIR EXISTENCE BY PUTTING THE LAWS INTO PRACTICE IN 1992 HE NOTES THE EPA WAS GIVEN NEW POWERS TO FORCE STATES TO ABIDE BY CLEAN AIR ACT STANDARDS MOREOVER AT LEAST SIX MAJOR STATE EMISSIONS TESTING CONTRACTS ARE DUE TO BE AWARDED IN 1993 ALONE IF ENVIROTEST WINS EVEN A THIRD OF THAT BUSINESS EARNINGS COULD ACCELERATE TO AROUND 1 A SHARE BY 1995 FROM AN ESTIMATED 40 CENTS A SHARE THIS YEAR ANALYSTS THINK MR RONSON'S OUTLOOK FOR THE STOCK WHILE PROSPECTS MIGHT SEEM CLOUDY TODAY THERE'S A CHANCE FOR SHINING PERFORMANCE AND BLUER SKIES TOMORROW ENVIROTEST IS THE QUINTESSENTIAL STORY OF A LITTLE DOWNSIDE POTENTIAL AND A LOT OF UPSIDE HE SAYS A SECOND PICK BY MR RONSON IS LANDSTAR SYSTEM INC ALEX BROWN HELPED THE COMPANY SELL 475 MILLION SHARES TO THE PUBLIC ON MARCH 5 FOR 13 EACH SINCE THEN THE STOCK HAS GONE NOWHERE CLOSING FRIDAY AT 13 WHAT IS LANDSTAR THE SHELTON CONN COMPANY OPERATES ONE OF THE LARGEST TRUCKING BUSINESSES IN THE COUNTRY WHILE LANDSTAR'S BUSINESS MAY SEEM PROSAIC ITS HISTORY IS ANYTHING BUT DULL IN MARCH 1988 A SHELL COMPANY NAMED ENVIROSOURCE BOUGHT A CONGLOMERATE CALLED IU INTERNATIONAL CORP IN A LEVERAGED DEAL ENVIROSOURCE WAS CONTROLLED BY THE NEW YORK BUYOUT FIRM DYSON KISSNER MORAN ENVIROSOURCE TOOK SOME IU SUBSIDIARIES AND CONSOLIDATED THEM TO FORM LANDSTAR ENVIROSOURCE THEN LOADED LANDSTAR WITH JUNK DEBT USING THE PROCEEDS FROM THE 1988 BOND ISSUE TO PAY ITSELF A WHOPPING 723 MILLION IN A SPECIAL DIVIDEND LANDSTAR WAS SOLD IN MARCH 1991 KELSO & CO AND ALEX BROWN'S OWN MERCHANT BANKING UNIT TOGETHER WITH LANDSTAR'S MANAGEMENT AND SOME INSTITUTIONAL INVESTORS BOUGHT 83 OF LANDSTAR FROM ENVIROSOURCE FOR 250 A SHARE OR A TOTAL OF 201 MILLION PART OF THAT MONEY WENT TO LANDSTAR AS A CASH INFUSION ALL COMPANY PROCEEDS FROM THIS YEAR'S STOCK OFFERING WERE USED TO PAY DOWN THE HIGHCOUPON DEBT TAKEN ON BY LANDSTAR IN 1988 THE OFFERING ALSO PROVIDED A BIG PAYOFF FOR THE GROUP THAT PURCHASED THE FIRM IN 1991 KELSO FOR INSTANCE UNLOADED ABOUT 17 MILLION OF ITS OWN SHARES MAKING FIVE TIMES THE FIRM'S INITIAL INVESTMENT THAT'S THE PAST TODAY THE TRUCKER'S OPERATING LEVERAGE EXCITES MR RONSON UNLIKE MOST OTHER PUBLICLY TRADED TRUCKING COMPANIES LANDSTAR OWNS VERY FEW OF ITS OWN RIGS INSTEAD THE TRUCKER HIRES FROM A POOL OF INDEPENDENT OWNEROPERATORS WHICH MEANS THE COMPANY HAS LOW FIXED COSTS SINCE LANDSTAR DOESN'T HAVE TO SPEND LOADS OF CASH ON SERVICING A FLEET RETURNS ON EQUITY CAN RUN HIGH WHEN BUSINESS IS GOING WELL IF YOU OWN THE TRUCK EXPENSES BLOW THROUGH YOUR PROFITS MR RONSON EXPLAINS HERE YOU JUST MAKE ONE PAYMENT TO THE TRUCK OWNER THESE PAYMENTS ARE LANDSTAR'S BIGGEST EXPENSE OF COURSE BUT THEY DON'T STAY ON THE BALANCE SHEET AS ASSETS THAT NEED UPKEEP AND FINANCING WHEN BUSINESS SLOWS ALEX BROWN ANALYST JOHN G LARKIN SEES THE COMPANY EARNING 125 A SHARE IN 1994 ON REVENUE OF 820 MILLION THE STOCK IS TRADING AT ONLY 10 TIMES HIS ESTIMATED EARNINGS THEY ARE NOT THE BEST NOR ARE THEY THE WORST OF THE TRUCKERS SAYS MR RONSON CANDIDLY INVESTORS PROBABLY WON'T DOUBLE THEIR MONEY OVERNIGHT BUT THEY PROBABLY WILL IN A YEAR TO 18 MONTHS NASDAQ SHARES ENDED MIXED IN A SESSION DOMINATED BY FEARS OF RISING INTEREST RATES AND POSSIBLE MILITARY ACTION AGAINST BOSNIAN SERBS COMPUTERRELATED STOCKS RALLIED WITH CISCO SYSTEMS LEADING THE WAY GAINING 3 1/2 TO 48 3/4 ON 63 MILLION SHARES THE MENLO PARK CALIF CONCERN POSTED FISCAL THIRDQUARTER NET INCOME OF 36 CENTS A SHARE COMPARED WITH 18 CENTS A YEAR EARLIER ANALYSTS HAD PROJECTED QUARTERLY EARNINGS OF 33 CENTS A SHARE ALSO HIGHER WERE BMC SOFTWARE WHICH JUMPED 3 7/8 TO 51 LEGENT CORP WHICH ADDED 1 3/8 TO 30 7/8 AND LOTUS DEVELOPMENT WHICH RALLIED 1 1/2 TO 32 IN HEAVY TRADING INTERESTRATE SENSITIVE ISSUES SUFFERED ALONG WITH THE BOND MARKET CINCINNATI FINANCIAL SHED 1 1/2 TO 57 CORESTATES FINANCIAL LOST 1 TO 54 NORTHERN TRUST WAS OFF 1 TO 43 1/4 UNION BANK SLIPPED 2 3/4 TO 31 3/4 EQUITABLE OF IOWA TUMBLED 2 TO 55 AND UNITED WISCONSIN DROPPED 1 TO 27 SEE RELATED STORY HEARD ON THE STREET MANY STOCKS LABELED THE NEXT MICROSOFT' HAVEN'T MEASURED UP TO THE HYPE WSJ MAY 10 1993 9305100119 930510 POLITICS & POLICY CLINTON'S CAMPAIGNFINANCE PROPOSAL TAKES AIM AT CONGRESS AND LOBBYISTS BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO OF THE MOST POWERFUL AND REVILED GROUPS IN AMERICAN POLITICS MEMBERS OF CONGRESS AND BIGTIME LOBBYISTS WOULD TAKE A BRUISING FROM PRESIDENT CLINTON'S SWEEPING CAMPAIGNFINANCE PROPOSAL THE PLAN UNVEILED FRIDAY UNDERCUTS SOME OF THE MOST COMFORTABLE ADVANTAGES OF INCUMBENCY ESPECIALLY ACCESS TO VAST SUMS FROM SPECIAL INTERESTS LIMITS WOULD BE PLACED ON THE AMOUNT CANDIDATES FOR FEDERAL OFFICE COULD SPEND ON CAMPAIGNS AND TAXPAYERS WOULD FOOT PART OF THE TAB FOR INCUMBENTS AND CHALLENGERS LOBBYISTS ALSO WOULD FACE HARSH RESTRICTIONS CHIEF AMONG THEM A BAN ON CONTRIBUTIONS TO OR RAISING MONEY FOR THE PEOPLE THEY LOBBY THIS WOULD BE A MAJOR BLOW TO SOME OF WASHINGTON'S MOST PROMINENT INFLUENCEPEDDLERS SUCH AS TOMMY BOGGS AND R DUFFY WALL WHOSE REPUTATIONS ARE BASED LARGELY ON THEIR ABILITY TO RAISE CAMPAIGN FUNDS BECAUSE IT ATTACKS SUCH POTENT FORCES THE CLINTON PLAN FACES AN UPHILL FIGHT IN THE SENATE FOR EXAMPLE REPUBLICANS INTEND TO FILIBUSTER CHARGING THAT IT IS WRONG FOR TAXPAYERS TO SUBSIDIZE POLITICIANS DEMOCRATIC VOTECOUNTERS SAY THE GOP MIGHT HAVE ENOUGH SUPPORT TO STOP THE BILL THERE AND LEAST SOME DEMOCRATIC POLITICAL STRATEGISTS HOPE THEY DO HOW BETTER TO ATTACK THE REPUBLICANS THAN BRANDING THEM AS THE FRIENDS OF SPECIAL INTERESTS BUT THE WHITE HOUSE APPEARS FOR THE MOMENT AT LEAST TO BE SERIOUS ABOUT GETTING A BILL AND NOT JUST A CAMPAIGN ISSUE UNLESS WE CHANGE FUNDAMENTALLY THE WAY CAMPAIGNS ARE FINANCED PRESIDENT CLINTON SAID EVERYTHING ELSE WE SEEK TO DO TO IMPROVE THE LIVES OF OUR PEOPLE WILL BE MUCH HARDER TO ACHIEVE MR CLINTON HAS BEEN JUST AS DETERMINED IN PRIVATE HOUSE DEMOCRATS WHO ARE AS SQUEAMISH ABOUT THE EFFORT AS SENATE REPUBLICANS WERE TOLD THEY HAD UNTIL FRIDAY TO NEGOTIATE CHANGES WITH OR WITHOUT THEIR SUPPORT THE PRESIDENT THREATENED IT WAS GOING PUBLIC THAT DAY THE SAME SORT OF DEFIANCE RUNS THROUGHOUT THE PROPOSAL WHICH ULTIMATELY GOT THE ENDORSEMENT OF HOUSE AND SENATE DEMOCRATIC LEADERS TAKING HIS LEAD FROM THE MILLIONS OF VOTERS WHO LAST YEAR MADE CLEAR THAT THEY DISTRUSTED BUSINESS AS USUAL IN WASHINGTON MR CLINTON HAS DECIDED TO REIN IN AND IN THE PROCESS VILLIFY THE CITY'S OMNIPRESENT LOBBYISTS AND THE POLITICAL ACTION COMMITTEES THAT ARE THEIR FUNDAMENTAL TOOL OF INFLUENCE THE CLINTON PLAN WOULD EXTRACT FROM THE SYSTEM MUCH OF THE SPECIALINTEREST MONEY THAT UNDERGIRDS CAMPAIGNS FOR FEDERAL OFFICE TO ACCOMPLISH THIS IT AIMS TO CONSTRICT THE AMOUNT OF MONEY THAT CANDIDATES CAN SPEND AND WOULD PROVIDE TAXPAYER FUNDS TO SUBSTITUTE FOR SOME OF WHAT IS NOW EXCLUSIVELY PRIVATE MONEY THE SPENDING LIMITS WOULD BE 600000 FOR HOUSE RACES AND 12 MILLION TO 55 MILLION FOR SENATE RACES DEPENDING ON A STATE'S POPULATION THE GOVERNMENT WOULD ENTICE CANDIDATES TO STAY BELOW THESE CAPS BY PROVIDING VOUCHERS FOR TELEVISION AIR TIME AND PRINT ADVERTISEMENTS HOUSE CANDIDATES COULD RECEIVE VOUCHERS FOR AS MUCH AS ONETHIRD OF THE SPENDING LIMIT WHILE SENATE CANDIDATES COULD GET UP TO ONEFOURTH BROADCASTERS WOULD BE REQUIRED TO GIVE LOW RATES TO CANDIDATES WHO QUALIFY FOR THE VOUCHERS ACCORDING TO A CLINTON AIDE HOUSE CANDIDATES WOULD HAVE TO GET THE LOWEST ADVERTISING RATE FOR SOCALLED NONPREEMPTIBLE TIME SENATE CANDIDATES WOULD GET A 50 DISCOUNT ON THAT RATE FOR MANY MEMBERS OF CONGRESS SUCH LIMITATIONS ARE CAUSE FOR CONCERN INCUMBENTS NORMALLY OUTSPEND CHALLENGERS OFTEN BY BIG MARGINS AND THAT DIFFERENCE HELPS KEEP REELECTION RATES HIGH LONGTIME LOBBYISTS ALSO ARE WORRIED TO PAY FOR PART OF THE PUBLIC FINANCING THE PLAN WOULD REPEAL THE TAX DEDUCTION FOR LOBBYING EXPENSES A MOVE THAT COULD PUT MANY OF THEM OUT OF BUSINESS IN ADDITION LIMITS WOULD BE PLACED ON HOW MUCH CANDIDATES CAN TAKE FROM PACS RESTRICTING THE FUNDS TO ONETHIRD OF A HOUSE CANDIDATE'S CONTRIBUTIONS AND ONEFIFTH OF A SENATE CANDIDATE'S IF THE PLAN IS ABLE TO MOVE OUT OF THE SENATE IT INEVITABLY WILL BE ALTERED DEMOCRATS IN THE HOUSE AND FEMALE LAWMAKERS IN BOTH CHAMBERS ARE DETERMINED TO GIVE AN EXCEPTION TO EMILY'S LIST WHICH RAISES MONEY FOR FEMALE DEMOCRATIC CANDIDATES THE AMENDMENT WOULD ALLOW THE GROUP AS WELL AS OTHERS NOT CONNECTED TO AN INDUSTRY OR ISSUE TO BUNDLE CAMPAIGN CHECKS FROM INDIVIDUAL CONTRIBUTORS CRITICS SAY THE EXCEPTION WOULD HURT THE CAUSE OF LIMITING SPECIALINTEREST FUNDS AND AT LEAST ONE LOBBYIST IS LOBBYING PART OF THE BILL JAMES ROCK OF CONCORD ASSOCIATES HAS BEEN HIRED BY REAL ESTATE DEVELOPERS TO ENSURE THAT THE REPEAL OF THE LOBBYING DEDUCTION DOESN'T AFFECT LOBBYING OF STATE AND LOCAL LAWMAKERS EVEN BEFORE IT WAS INTRODUCED THE PLAN WAS DILUTED THE PRESIDENT BOWED TO PRESSURE FROM HOUSE DEMOCRATS TO KEEP THE MAXIMUM PAC CONTRIBUTION AT 5000 RATHER THAN REDUCING IT TO 1000 AS HE HAD PROMISED DURING THE CAMPAIGN BUT AS A MEASURE OF HIS SERIOUSNESS MR CLINTON TRADED THAT CONCESSION FOR THE BAN ON LOBBYISTS' FUNDRAISING 9305100118 930510 CREDIT MARKETS REFUNDING TESTS MARKET THIS WEEK BUT MANAGERS EXPECT ONLY MILD RATE RISES IN COMING MONTHS BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE TREASURY WILL RATTLE ITS HUGE TIN CUP ON WALL STREET AGAIN THIS WEEK AND IT IS LIKELY TO RUN INTO MANY SKEPTICAL INVESTORS TO PAY THE GOVERNMENT'S BILLS TREASURY OFFICIALS NEED TO SELL 35 BILLION OF NOTES AND BONDS IN ADDITION TO 382 BILLION OF SHORTTERM BILLS TODAY THROUGH THURSDAY TRADERS SAY FEARS ABOUT THE SHEER WEIGHT OF ALL THIS BORROWING CONTRIBUTED TO A SLUMP IN BOND PRICES AND AN INCREASE IN YIELDS LATE LAST WEEK BUT ANY FURTHER INTERESTRATE INCREASES IN COMING MONTHS ARE LIKELY TO BE SMALL ECONOMISTS AND MONEY MANAGERS PREDICT THAT'S BECAUSE THEY EXPECT THE ECONOMY TO REMAIN LACKLUSTER AT BEST WHICH WILL HELP KEEP INFLATION AT BAY THE GOVERNMENT'S APRIL EMPLOYMENT DATA RELEASED FRIDAY SHOWED A MODERATE RISE OF 119000 IN NONFARM PAYROLL EMPLOYMENT A DECLINE OF 65000 MANUFACTURING JOBS AND NO CHANGE IN THE 7 UNEMPLOYMENT RATE EVEN SOME MONEY MANAGERS WHO ARE LEERY OF BONDS SAY THEY EXPECT ONLY MILD INTERESTRATE INCREASES IN COMING MONTHS THERE ARE VIRTUALLY NO INFLATIONARY PRESSURES IN THE SYSTEM BUT THE RISKS OF OWNING LONGTERM BONDS RIGHT NOW AREN'T JUSTIFIED BY THE INTEREST RATE YOU'RE GETTING ON THEM SAYS JAMES L MELCHER PRESIDENT OF BALESTRA CAPITAL A NEW YORK INVESTMENT ADVISORY FIRM WE DO NOT EXPECT LONGTERM INTEREST RATES TO MOVE UP SIGNIFICANTLY FOR SIX MONTHS TO A YEAR BUT WE DO THINK THE NEXT MAJOR MOVE IN RATES WILL BE UP THUS MR MELCHER ISN'T BUYING ANY BONDS RIGHT NOW LONG BONDS DON'T PAY YOU ENOUGH FOR THE RISK AND SHORTER BONDS DON'T PAY YOU ANYTHING AT ALL IN REAL TERMS HE SAYS THAT'S WHY WE'RE SO BULLISH ON STOCKS PEOPLE ARE BEING FORCED OUT OF SHORTTERM INSTRUMENTS AND LONGTERM BONDS INTO STOCKS AND WE EXPECT THAT TO CONTINUE THE LONGRUNNING BULL MARKET IN BONDS IS COMING TO AN END IN THE NEXT FEW MONTHS BUT THAT DOESN'T MEAN WE'RE HEADING INTO A BIG BEAR MARKET EITHER SAYS WILLIAM H GROSS MANAGING DIRECTOR OF PACIFIC INVESTMENT MANAGEMENT CO IN NEWPORT BEACH CALIF WHICH MANAGES 45 BILLION ALL I'M SUGGESTING IS THAT INTEREST RATES ARE BOTTOMING HERE AND THAT THE LONG BOND THE TREASURY'S BENCHMARK 30YEAR BOND WILL RANGE BETWEEN 65 AND 725 OVER THE NEXT SEVERAL MONTHS THAT CLOSELY WATCHED 30YEAR GOVERNMENT BOND CLOSED FRIDAY AT A YIELD OF ABOUT 68 CLOSE TO THE CENTER OF THE RANGE THAT MR GROSS EXPECTS THE CLOSER WE GET TO 65 THE MORE BONDS WE'D PROBABLY SELL MR GROSS SAYS THE TREASURY'S DECISION TO SLASH THE GOVERNMENT'S SALES OF LONGTERM BONDS AND RELY MORE HEAVILY ON SHORTTERM BORROWING COULD HELP KEEP A LID ON LONGTERM BOND YIELDS SEVERAL TRADERS SAY BUT THEY SAY THE MOVE ANNOUNCED LAST WEDNESDAY COULD ALSO HELP PUSH SHORTERTERM RATES HIGHER THUS REDUCING THE HUGE GAP BETWEEN SHORTTERM AND LONGTERM INTEREST RATES OR IN BOND JARGON FLATTENING THE YIELD CURVE THE TREASURY'S MOVE MAKES ME MORE BEARISH ON SHORT TO INTERMEDIATETERM NOTES BECAUSE OF THE INCREASED SUPPLY IN THAT AREA SAYS MR GROSS OF PACIFIC INVESTMENT MANAGEMENT SO I WOULD EXPECT A FLATTER YIELD CURVE WITH SHORT TO INTERMEDIATETERM NOTES UNDERPERFORMING LONGTERM BONDS PACIFIC INVESTMENT NOW HOLDS ABOUT 95 BILLION OF 30YEAR BONDS THAT IS AFTER SELLING 500 MILLION TWO WEEKS AGO IT INVESTED MOST OF THE PROCEEDS FROM THOSE SALES IN SHORTTERM COMMERCIAL PAPER OR CORPORATE IOUS THE GAP BETWEEN SHORTTERM RATES SUCH AS THREEMONTH TREASURY BILLS AND LONGTERM YIELDS SUCH AS 30YEAR TREASURY BONDS NOW STANDS AT NEARLY FOUR PERCENTAGE POINTS THAT IS A MUCH LARGER GAP THAN USUAL THAT GULF EVENTUALLY WILL NARROW PREDICTS DAVID W BALDT EXECUTIVE VICE PRESIDENT AT MORGAN GRENFELL CAPITAL MANAGEMENT INC BUT FOR THE TIME BEING WE THINK THE BEST VALUES RIGHT NOW LIE IN US TREASURY NOTES MATURING BETWEEN FOUR AND SEVEN YEARS BUT SOME WELLKNOWN MONEY MANAGERS THINK LONGTERM BONDS STILL REPRESENT THE BEST BET I THINK SHORT RATES ARE NOT LIKELY TO GO ANY LOWER AND I THINK LONG TREASURY BOND RATES ARE LIKELY TO GO DOWN TO MAYBE 625 SAYS EDWARD S HYMAN PRESIDENT OF ISI INC A NEW YORK INVESTMENT RESEARCH AND MANAGEMENT FIRM THE MAIN REASON HE SAYS IS THAT INFLATION WILL BE LOWER THAN MOST PEOPLE NOW EXPECT INFLATION IS GOING TO COME IN AROUND 2 FOR THE REST OF THE YEAR MR HYMAN SAYS SO I THINK LONGTERM BONDS ARE GOING TO OUTPERFORM SHORT AND INTERMEDIATE PIECES OF PAPER AND I THINK WE'LL HAVE A NICE TOTAL RETURN IN LONG BONDS OVER THE REMAINDER OF THE YEAR TOTAL RETURN INCLUDES PRICE CHANGES AS WELL AS INTEREST INCOME NANCY R LAZAR ISI'S EXECUTIVE VICE PRESIDENT SAYS THE CONSENSUS FORECAST ALSO CALLS FOR THE WORLD'S BEST BOND MARKET FOR THE REST OF THIS YEAR TO BE FRANCE THAT'S BECAUSE MANY INVESTORS BELIEVE THAT FRANCE IS MOVING INTO A SEVERE RECESSION AND THAT FRANCE WILL HAVE LOW INFLATION HOVERING AROUND 2 OR LESS HERE IS THE US TREASURY'S BORROWING SCHEDULE THIS WEEK TODAY REGULAR WEEKLY AUCTION OF 232 BILLION OF SHORTTERM BILLS EVENLY DIVIDED BETWEEN 13WEEK AND 26WEEK BILLS AS OF LATE FRIDAY THREEMONTH BILLS YIELDED ABOUT 29 WITH SIXMONTH BILLS JUST OVER 3 THURSDAY 825 BILLION OF 30YEAR BONDS THEY YIELD ABOUT 68 ALSO ON THURSDAY THE TREASURY WILL SELL 15 BILLION OF 129DAY CASH MANAGEMENT BILLS SOME INVESTMENT MANAGERS WHO ARE BEARISH ON TAXABLE BONDS SEE BARGAINS IN TAXFREE BONDS ESPECIALLY BECAUSE OF THE GROWING LIKELIHOOD OF HIGHER TAXES SOON THE MUNICIPAL MARKET IS STILL QUITE ATTRACTIVE COMPARED TO TREASURY AND CORPORATE BONDS SAYS MR GROSS OF PACIFIC INVESTMENT MANAGEMENT HE NOTES THAT MUNICIPAL BOND YIELDS NOW STAND AT UNUSUALLY ATTRACTIVE LEVELS COMPARED WITH YIELDS ON TAXABLE BONDS EVEN BEFORE FACTORING IN THE IMPACT OF ANY FUTURE TAX INCREASES MR GROSS SAYS HE HAS PURCHASED SOME TAXFREE BONDS FOR HIMSELF OVER THE LAST MONTH AND A HALF LONGTERM TREASURY BOND PRICES SLUMPED BUT MOST INTERMEDIATETERM ISSUES WERE LITTLE CHANGED THE TREASURY'S BENCHMARK 30YEAR BONDS DROPPED HALF A POINT OR 5 FOR A BOND WITH A FACE VALUE OF 1000 TO 103 18/32 THEIR YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE ROSE TO 684 FROM 680 LATE THURSDAY THE PRICE OF THE TREASURY'S 10YEAR NOTE SLIPPED LESS THAN 1/4 POINT TO 102 17/32 TO YIELD 590 UP FROM 587 BUT THE THREEYEAR NOTE ENDED UNCHANGED AT 101 7/32 TO YIELD 413 EARLY IN THE DAY LONGTERM BOND PRICES RALLIED BRIEFLY AFTER THE LABOR DEPARTMENT REPORTED AN UNEXPECTEDLY SMALL INCREASE IN THE NUMBER OF WORKERS ON NONFARM PAYROLLS DURING APRIL ANALYSTS GENERALLY HAD EXPECTED AN INCREASE OF ABOUT 150000 TO 160000 JOBS INSTEAD THE GOVERNMENT REPORTED A GAIN OF 119000 THE REPORT PAINTED A PICTURE OF GENERAL ECONOMIC SLUGGISHNESS THAT LIKELY WILL KEEP INFLATION IN CHECK ECONOMISTS SAID THE APRIL JOBS REPORT HAD A FLAT TONE SAID JOHN LONSKI SENIOR ECONOMIST AT MOODY'S INVESTORS SERVICE INC IN A REPORT HE WROTE THAT THE EMPLOYMENT DATA LESSENED INFLATION RISKS AT LEAST FOR THE NEAR TERM BUT THE BOND MARKET'S RALLY QUICKLY RAN OUT OF STEAM AS TRADERS FOCUSED ON THE TREASURY'S ENORMOUS BORROWING NEEDS THIS WEEK IT SEEMED LIKE WE SAW SOME PRETTY GOOD VOLUME BUT THINGS JUST SLOWED DOWN SOON AFTER THE NUMBER SAID JOHN FECHTER HEAD OF GOVERNMENT SECURITIES TRADING AT AG EDWARDS & SONS INC ST LOUIS 9305100117 930510 ECONOMY TWO HOUSE CHAIRMEN BACK LAW GIVING AIRLINES RIGHT TO SELL OVERSEAS ROUTES BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO POWERFUL HOUSE CHAIRMEN MOVING TO QUELL A TEMPEST OVER AVIATION POLICY INTEND TO PUSH LEGISLATION THAT WOULD CODIFY THE RIGHT OF AIRLINES TO SELL INTERNATIONAL AIR ROUTES THE TEMPEST WAS TOUCHED OFF BY REPORTS THAT THE CLINTON ADMINISTRATION'S TRANSPORTATION DEPARTMENT IS REVIEWING ITS INTERNATIONALROUTE POLICIES INCLUDING WHETHER IT SHOULD CONTINUE TO LET AIRLINES TREAT GOVERNMENTALLOCATED ROUTES AS CORPORATE ASSETS AND SELL THEM AT HUGE PROFITS SOME AIRLINES BECAME ALARMED AT THE POSSIBILITY OF A ROUTESALES BAN BECAUSE IT WOULD REVERSE A LONGSTANDING POLICY FROM THE REAGANBUSH ERA AND DIMINISH THE ASSETS OF CARRIERS WITH VALUABLE OVERSEAS ROUTES REP BOB CARR CHAIRMAN OF THE HOUSE APPROPRIATIONS SUBCOMMITTEE ON AVIATION SAID CONGRESS SHOULD CODIFY THE PRACTICE OF BUYING AND SELLING ROUTES TO GIVE IT A SOLID STATUTORY BASIS THE MICHIGAN DEMOCRAT SAID HE WOULD URGE REP JAMES OBERSTAR CHAIRMAN OF THE HOUSE PUBLIC WORKS AND TRANSPORTATION SUBCOMMITTEE ON AVIATION TO PRESS AHEAD WITH SUCH LEGISLATION WE'RE OPERATING HERE IN THE REAL WORLD WITH BILLIONS OF DOLLARS ON THE LINE SAID REP CARR IF YOU HAVE ASSETS THAT COULD GO TO ZERO INVESTORS BECOME VERY NERVOUS REP OBERSTAR PLANS TO REVIVE A MEASURE THAT WOULD LET THE MARKETPLACE DETERMINE THE VALUE OF OVERSEAS ROUTES BUT WOULD HAVE THE TRANSPORTATION SECRETARY DECIDE WHETHER EACH TRANSACTION IS IN THE TRAVELING PUBLIC'S BEST INTEREST UNDER HIS BILL WHICH CLEARED THE HOUSE TWO YEARS AGO BUT DIED IN THE SENATE THE HIGHEST BIDDER WOULDN'T NECESSARILY WIN THE ROUTE THE SECRETARY COULD AWARD IT TO ANOTHER CARRIER TO PRESERVE COMPETITION IN CERTAIN MARKETS THE MINNESOTA DEMOCRAT SAID HE REGARDS THE SALE OF GOVERNMENTCONFERRED ROUTE RIGHTS AS REPREHENSIBLE BUT AGREES WITH MANY IN THE INDUSTRY THAT IT WOULD BE DISASTROUS TO TRY TO ROLL BACK A DECADE OF REGULATORY HISTORY THE BIG THREE ALONE UAL CORP'S UNITED AIR LINES AMR CORP'S AMERICAN AIRLINES AND DELTA AIR LINES TOGETHER PAID MORE THAN 28 BILLION TO ACQUIRE OVERSEAS ROUTES FROM CASHSTRAPPED CARRIERS MONEY HAS CHANGED HANDS BUSINESS DECISIONS HAVE BEEN MADE SAID REP OBERSTAR THE FORTUNES OF MANY AIRLINES ARE TIED TO THOSE ASSETS BOTH LAWMAKERS TAKE A PARTICULAR INTEREST IN THE MATTER BECAUSE NORTHWEST AIRLINES A UNIT OF CLOSELY HELD WINGS HOLDINGS INC OPERATES MAJOR HUBS IN DETROIT AND MINNEAPOLIS AND BECAUSE A BAN ON INTERNATIONAL ROUTE SALES WOULD INSTANTLY DEVALUE THE STRUGGLING CARRIER'S SOCALLED CROWN JEWELS ITS TRANSPACIFIC ROUTES WORD OF THE TRANSPORTATION DEPARTMENT'S REVIEW OF INTERNATIONAL POLICY OPTIONS PROMPTED A FLURRY OF TELEPHONE CALLS FRIDAY FROM NORTHWEST EXECUTIVES TO THEIR OFFICES AND THE DEPARTMENT AFTER REP CARR INTERVENED ON THE AIRLINE'S BEHALF TRANSPORTATION SECRETARY FEDERICO PENA SENT A LETTER TO NORTHWEST PRESIDENT JOHN DASBURG SAYING THE DEPARTMENT'S REVIEW IS FOCUSED ON THE SALE OF THREE USAIR ROUTES IN MARCH THE DEPARTMENT CLEARED BRITISH AIRWAYS TO BUY A 199 VOTING STAKE IN THE USAIR GROUP INC UNIT FOR 300 MILLION AND BEGIN SHARING COMPUTER CODES FOR RESERVATIONS ON THE CONDITION THAT USAIR SELLS THREE ROUTES TO LONDON IN CONSIDERING A SLEW OF COMPETING BIDS FOR THE CHOICE ROUTES MR PENA WROTE THE DEPARTMENT DOESN'T INTEND TO EFFECT A MORE GENERAL POLICY BUT SECRETARY PENA'S ATTEMPT TO ALLAY NORTHWEST'S CONCERNS REPRESENTS A RETREAT FROM WHAT THE DEPARTMENT WAS SAYING AS LATE AS THURSDAY NIGHT SEVERAL AVIATION ANALYSTS SUGGESTED IT WOULD BE A MISTAKE FOR THE DEPARTMENT TO CONSIDER APPLICATIONS FOR USAIR ROUTES IN A POLICY VACUUM REQUIRING USAIR TO DIVEST ITSELF OF THOSE ROUTES HAS FLUSHED OUT A POLICY MESS SAID JON ASH A WASHINGTONBASED AVIATION CONSULTANT WHATEVER THEY DO IS GOING TO SET SIGNIFICANT PRECEDENT AND PRECEDENT TENDS TO RULE REGULATORY POLICY ALFRED KAHN FORMER HEAD OF THE CIVIL AERONAUTICS BOARD SAID IT WOULD BE RIDICULOUS FOR THE DEPARTMENT TO CONSIDER ROUTE SALES ON A CASEBYCASE BASIS PROSPECTIVELY WE OUGHT TO SAY ANY NEW ROUTE PRIVILEGES DON'T BECOME THE PRIVATE PROPERTY OF THE LICENSEES HE SAID I'M BAFFLED ABOUT WHAT YOU OUGHT TO DO WITH EXISTING ROUTES AND AIRPORT SLOTS REP OBERSTAR AND MR PENA FAVOR PUTTING THIS QUESTION TO THE BIPARTISAN AIRLINES COMMISSION WHICH WAS RECENTLY NAMED TO SEEK WAYS TO STRENGTHEN THE TROUBLED INDUSTRY 9305100116 930510 WORLD MARKETS TOKYO EQUITIES GAIN ON LATE ARBITRAGE BUYING SHARE PRICES FIRM IN LONDON FALL IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SCORED GAINS FRIDAY THE BULK OF WHICH CAME FROM A SPURT OF ARBITRAGE BUYING IN THE FINAL 10 MINUTES OF TRADING LONDON PRICES MANAGED A LATE TURNAROUND TO END FIRMER FRANKFURT INVESTORS CONTINUED TO UNLOAD STOCKS LEAVING PRICES LOWER WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10582 DOWN 021 PLANTATION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13427 UP 451 OR 35 WITH GOLDEN HOPE OF MALAYSIA POSTING A 69 GAIN IN ITS LOCAL CURRENCY COSMETICS STOCKS TRAILED AT 10764 DOWN 179 OR 16 WITH L'OREAL OF FRANCE SLIDING 33 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH LOST 29715 POINTS THURSDAY CLIMBED 18933 TO 2081136 WHICH ALSO WAS THE INTRADAY HIGH ON MONDAY THE NIKKEI INDEX EASED 2248 POINTS TO CLOSE THE MORNING SESSION AT 2078888 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 600 MILLION SHARES DOWN FROM 6228 MILLION SHARES ON THURSDAY GAINERS SWAMPED RETREATING ISSUES 738324 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 946 POINTS THURSDAY RECOVERED 944 TO 162077 SHARE PRICES SEESAWED DURING THE TOKYO SESSION TRACKING THE YEN'S MOVEMENTS AGAINST THE DOLLAR IN FOREIGN CURRENCY MARKETS CAUTION WAS THE WATCHWORD AMONG STOCK INVESTORS WITH NO CONSENSUS THAT THE YEN HAD TOPPED OUT AND THEY CONTINUED TO MOVE INTO DOMESTIC AND IMPORTORIENTED ISSUES INSTITUTIONS JOINED DEALERS ON THE BUY SIDE WHILE ARBITRAGERS WHO BUY AND SELL SECURITIES SIMULTANEOUSLY TO TAKE ADVANTAGE OF SMALL DIFFERENCES IN PRICE PLAYED ON BOTH THE PURCHASING AND SELLING SIDES THE TOKYO MARKET'S OVERALL MOOD STAYED BRIGHT REFLECTED BY THE 292 STOCKS THAT HIT NEW 1993 HIGHS IN FRIDAY'S SESSION CONSTRUCTION AND REAL ESTATE ISSUES WHICH LAGGED BEHIND THE NIKKEI IN ITS 20 RALLY FROM MARCH TO MIDAPRIL WERE PROMINENT AMONG THESE BIG GAINERS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 74 POINTS TO 27937 BUT WAS DOWN ABOUT 20 POINTS FOR THE WEEK THE FT 30STOCK INDEX EDGED UP 09 POINT TO 21895 VOLUME WAS 6128 MILLION SHARES COMPARED WITH 6795 MILLION SHARES A DAY EARLIER ONCE AGAIN TRADING THEMES WERE ELUSIVE AND THE MARKET DRIFTED FOR MOST OF THE SESSION WHILE MANY INVESTORS HOPED FOR A PICKUP WITH THE NEW TRADING ACCOUNT PERIOD AND CORPORATE EARNINGS REPORTS THIS WEEK AS WELL AS MORE GOVERNMENT ECONOMIC REPORTS THE MARKET OPENED ON A WEAK NOTE WITH THE 100STOCK INDEX FALLING 14 POINTS PRICES SEESAWED ALL DAY AMID CONTINUED UNCERTAIN SENTIMENT INVESTORS PAID SCANT ATTENTION TO THE DISMAL PERFORMANCE BY BRITAIN'S RULING CONSERVATIVE PARTY IN LOCAL ELECTIONS THURSDAY IN FRANKFURT THE DAX 30STOCK INDEX GAVE UP 1134 POINTS TO 161192 FRACTIONALLY ABOVE THE INTRADAY LOW OF 161183 AS THE MARKET'S SELLING TREND GATHERED STEAM AND TOOK THE DAX BELOW A PERCEIVED SUPPORT LEVEL OF 1615 WHICH HAD HELD FIRM EARLIER IN THE WEEK FOREIGN INVESTORS A MAJOR SOURCE OF LIQUIDITY IN FRANKFURT WERE LARGELY ABSENT RETHINKING STRATEGIES IN LIGHT OF TROUBLING GERMAN NEWS INCLUDING UNCHANGED INTEREST RATES AND AN ESCALATING STRIKE BY STEELWORKERS OVER PAY IN EASTERN GERMANY STOCKS ALSO WERE PRESSURED BY POOR EARNINGS IN THE BANKING AND INDUSTRIAL SECTORS PARIS STOCKS PLUNGED WITH THE CAC 40STOCK INDEX LOSING 4191 POINTS OR 22 TO 187857 THE LOWEST LEVEL SINCE FEB 16 AND BELOW A PERCEIVED SUPPORT LEVEL OF 1900 THE INDEX WHICH THREE WEEKS AGO HAD BEEN UP 5 FOR THIS YEAR NOW IS AHEAD JUST 11 DESPITE FIVE CUTS IN FRENCH INTEREST RATES IN FOUR WEEKS FOLLOWING DISCLOSURE OF A FRENCH BUDGET DEFICIT THAT IS LARGER THAN PREVIOUSLY REPORTED AND THAT MAY LEAD TO HIGHER TAXES THE PARIS MARKET WAS HIT WITH A FLOOD OF PROGRAM SELLING IN THE LATE AFTERNOON WHEN THE INDEX FELL BELOW 1900 FOR THE SECOND TIME DURING THE SESSION WAVES OF BASKET TRANSACTIONS SWEPT THE EXCHANGE IN WHICH DEALERS USED ARBITRAGE TECHNIQUES WITH BASKETS OF CAC 40 STOCKS AGAINST INDEX FUTURES AND OPTIONS AMSTERDAM PRICES ENDED MIXED THOUGH WITH A FIRM UNDERTONE FOLLOWING SMALL RATE REDUCTIONS BY THE DUTCH AND BELGIAN CENTRAL BANKS LATE IN THE TRADING DAY AND A FIRMER DOLLAR THOUGH WEAKNESS ON WALL STREET AND IN LONDON KEPT A REIN ON DUTCH EQUITIES IN MILAN SHARES ENDED MOSTLY HIGHER IN ACTIVE TRADING AS INVESTORS ADJUSTED POSITIONS AHEAD OF THIS WEEK'S TECHNICAL DEADLINES SUCH AS FOR OPTIONS CONTRACTS AND THE END OF THE STOCK TRADING CYCLE MADRID EQUITIES WEAKENED PARTLY ON DISAPPOINTING EARNINGS NEWS ABOUT BANKS STOCKHOLM SHARE PRICES ADVANCED IN HEAVY TRADING TO THEIR THIRD CONSECUTIVE HIGH FOR THIS YEAR ON A RALLY IN THE PHARMACEUTICAL SECTOR AND STRONG BUYING IN TELECOMMUNICATIONS OFFSETTING PROFITTAKING IN BANKING SHARES ZURICH STOCKS FINISHED MIXED AFTER EARLY GAINS GAVE WAY TO A DOWNTURN IN OTHER MARKETS IN SYDNEY SHARE PRICES RETREATED AFTER TWO DAYS OF GAINS PARTLY BECAUSE OF PROFITTAKING AND POOR CORPORATE EARNINGS PROSPECTS TAIPEI SHARES WERE BROADLY HIGHER LED BY STEEL FINANCE AND PLASTIC STOCKS SEOUL PRICES FELL SHARPLY FOR THE SECOND DAY IN A ROW IN LIGHT TRADING AS A STRING OF NEGATIVE FACTORS WEIGHED ON THE MARKET INCLUDING A SOUTH KOREAN ANTICORRUPTION DRIVE AND SHRINKING INVESTOR DEPOSITS WITH BROKERAGE FIRMS 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 9305100115 930510 REVIEW & OUTLOOK EDITORIAL RESTORING LIBERAL EDUCATION THE WORLD GOT THE WELCOME NEWS RECENTLY THAT A GROUP OF DISTINGUISHED SCHOLARS HAD FORMED A NEW ORGANIZATION DEDICATED TO THE RESCUE OF UNDERGRADUATE EDUCATION IT IS CALLED THE AMERICAN ACADEMY FOR LIBERAL EDUCATION AND IT IS HEADED BY SUCH STELLAR FIGURES AS COLUMBIA UNIVERSITY CRITIC AND HISTORIAN JACQUES BARZUN AND HARVARD'S EDWARD O WILSON PROFESSOR OF SCIENCE ITS GOAL IS TO RESTORE LIBERAL EDUCATION AS WE ONCE KNEW IT AS WE KNEW IT THAT IS BEFORE THE LEGIONS OF THE POLITICALLY ORTHODOX SUCCEEDED IN CONVERTING SO MANY INSTITUTIONS OF LEARNING INTO IDEOLOGICAL RETRAINING CENTERS THE ORGANIZATION WANTS AMONG OTHER THINGS TO TOUGHEN ACADEMIC STANDARDS SUBSTANTIALLY IT EXPLICITLY AFFIRMS THAT FREEDOM OF SPEECH AND THOUGHT ARE ESSENTIALS OF INTELLECTUAL INQUIRY THE CONCERNS OF THE SCHOLARS WHO HAVE FORMED THE AMERICAN ACADEMY FOR LIBERAL EDUCATION EXTEND TO EVERY ASPECT OF UNDERGRADUATE EDUCATION INCLUDING THE PHENOMENA OF GRADE INFLATION WHEREBY AS AND B'S ARE HANDED OUT VIRTUALLY AS A MATTER OF A STUDENT'S RIGHT AS JACQUES BARZUN TOLD US THE DECLINE IN THE JUDGMENT OF QUALITY EQUALS THE DECLINE OF QUALITY ITSELF HIS GROUP WANTS MANDATORY COURSES IN SCIENCES MATH LANGUAGES LITERATURE AND TO ENSURE THAT STUDENTS GET A SOLID GROUNDING IN WESTERN CIVILIZATION THEY ARE PURSUING THESE GOALS FROM 1015 EIGHTEENTH ST NW WASHINGTON DC 20036 BUT NO ASPECT OF THIS EFFORT TO RESCUE HIGHER EDUCATION WILL BE MORE IMPORTANT THAN THAT DIRECTED TOWARD THE PROTECTION OF FREE SPEECH AND THOUGHT THE NEWS OF THIS GROUP'S FORMATION IS ESPECIALLY HEARTENING IN LIGHT OF WHAT IS GOING ON AT THE UNIVERSITY OF PENNSYLVANIA THERE AS READERS OF THESE PAGES LEARNED RECENTLY A STUDENT HAS BEEN CALLED BEFORE A CAMPUS TRIBUNAL TO FACE POSSIBLE EXPULSION BECAUSE HE CALLED A GROUP OF NOISEMAKERS UNDER HIS DORM WINDOW WATER BUFFALO NOW ALLEGED TO BE A RACIAL SLUR PENN PRESIDENT SHELDON HACKNEY MR CLINTON'S NOMINEE TO HEAD THE NATIONAL ENDOWMENT FOR THE HUMANITIES HAS BEEN NOTHING IF NOT INSISTENT THAT THE GROTESQUE PROCEEDINGS AGAINST THIS STUDENT GO AHEAD MR HACKNEY ADVISED US THAT THE REASON THE UNIVERSITY PROCEDURES MUST BE SEEN THROUGH TO THEIR END WAS THAT THE SORORITY WOMEN CHARGING THAT THEY HAD BEEN RACIALLY HARASSED FELT AGGRIEVED DID THE COMPLAINANTS' MERE FEELING OF GRIEVANCE JUSTIFY THE ADMINISTRATION'S PUNITIVE CAMPAIGN AGAINST A STUDENT FOR USING A TERM CLEARLY HAVING NO RELATION TO A RACIAL SLUR YES MR HACKNEY TOLD US THE WOMEN'S FEELINGS OF GRIEVANCE REQUIRED REDRESS OBVIOUSLY THIS SORT OF THING ISN'T ALL THAT RARE WHAT WITH UNIVERSITIES HIRING FIGURES SUCH AS PENN'S JUDICIAL INQUIRY OFFICER ROBIN READ TO MONITOR STUDENT SPEECH BUT WHEN NEWS OF SUCH EVENTS ESCAPES BEYOND THE STONE WALLS IT DOESN'T GO DOWN WELL AMONG THE GENERAL POPULACE AN EDITORIAL IN THE PHILADELPHIA DAILY NEWS NOTES IT IS DIFFICULT TO IMAGINE BRIGHT YOUNG MINDS BEING EDUCATED BY A PACK OF IDIOTS BUT APPARENTLY THAT IS THE WAY THINGS CURRENTLY GO AT PENN A MASSACHUSETTS BOARD MEMBER OF THE AMERICAN CIVIL LIBERTIES UNION ATTESTS THAT THE PENN ADMINISTRATION IS ONE OF THE MOST COWARDLY AND CRAVEN OF ANY MAJOR UNIVERSITY THIS LAST COMMENT MIGHT HAVE REFERRED TO A RECENT INCIDENT IN WHICH NO GREAT OFFICIAL CONCERN WAS DISPLAYED WHEN A GROUP OF BLACK AND LATINO STUDENTS STOLE AND DESTROYED ALL 14000 COPIES OF THE STUDENT NEWSPAPER THE DAILY PENNSYLVANIAN BECAUSE THAT PAPER PUBLISHED THE WORK OF A CONSERVATIVE WRITER NAT HENTOFF REPORTS IN THE VILLAGE VOICE ON MR HACKNEY'S COMMENT THAT THE THEFT OF THE NEWSPAPERS SHOWS THAT TWO IMPORTANT UNIVERSITY VALUES DIVERSITY AND OPEN EXPRESSION SEEM TO BE IN CONFLICT NOT EVERYONE IN THE ACADEMY FINDS THIS CONFLICT DIFFICULT TO RESOLVE AT A FORUM ON UNIVERSITIES AND FREE SPEECH HELD AT HARVARD RECENTLY PROFESSOR RANDALL KENNEDY OF HARVARD LAW SCHOOL CHALLENGED THE CLOSE ASSOCIATION BETWEEN FREE SPEECH AND THE FIRST AMENDMENT ACCORDING TO AN ACCOUNT OF PROF KENNEDY'S ARGUMENT IN THE HARVARD GAZETTE THE UNIVERSITY'S OFFICIAL NEWSPAPER HE REASONED CLEARLY PROFESSOR BARZUN AND COMPANY AT THE AMERICAN ACADEMY FOR LIBERAL EDUCATION HAVE THEIR WORK CUT OUT FOR THEM RESTORING STANDARDS OF THOUGHT JUDGMENT AND ACHIEVEMENT AT THIS COUNTRY'S HIGHEST INSTITUTIONS OF LEARNING 9305100114 930507 CORPORATE EXECUTIVES EXPRESS PESSIMISM ABOUT JOB MARKET MEMBERS OF BUSINESS COUNCIL QUESTION CLINTON'S PLANS FOR TAXES AND HEALTH CARE BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WILLIAMSBURG VA A GROUP OF CORPORATE EXECUTIVES GAVE A GLOOMY APPRAISAL OF THE US ECONOMY AND SAID THEIR ANXIETY IS LARGELY PROPELLED BY PRESIDENT CLINTON'S TAX AND HEALTHCARE REFORM PLANS NEARLY EVERYONE ON THE 15MEMBER PANEL PART OF A LARGER CONTINGENT GATHERED HERE FOR A MEETING OF THE BUSINESS COUNCIL SAID THEY EXPECT THE JOB MARKET TO REMAIN WEAK FOR SOME TIME HIGHER TAXES AND HIGHER HEALTHCARE COSTS ARE IN DIRECT CONFLICT WITH JOB CREATION SAID JOHN WELCH CHAIRMAN OF GENERAL ELECTRIC CO UNCERTAINTY OVER THE CLINTON ADMINISTRATION'S PLANS CASTS A PALL ON THE ECONOMY SAID LAWRENCE BOSSIDY CHAIRMAN OF ALLIEDSIGNAL INC WE WON'T SEE A LOT MORE CONFIDENCE FROM BUSINESSES AND CONSUMERS HE SAID UNTIL THESE ISSUES ARE RESOLVED BEFORE THE EXECUTIVES GAVE THEIR OUT LOOK THE BUSINESS COUNCIL RELEASED A FORECAST PREPARED BY 20 ECONOMISTS WHO ADVISE THE GROUP WHICH IS MADE UP OF THE LEADERS OF THE NATION'S LARGEST CORPORATIONS THE REPORT SAID THAT INFLATION WOULD STAY UNDER CONTROL THROUGH 1994 LIKELY REMAINING IN THE 3 TO 35 RANGE A VIEW ENDORSED BY THE EXECUTIVES IT ALSO SAID THAT ECONOMIC GROWTH WILL AVERAGE ABOUT 3 IN 1993 AND 1994 UP FROM 21 LAST YEAR WALTER SHIPLEY PRESIDENT OF CHEMICAL BANKING CORP PREDICTED GROWTH WOULD AVERAGE ONLY ABOUT 25 WELL INTO NEXT YEAR SEPARATELY ROBERT RUBIN PRESIDENT CLINTON'S NATIONAL ECONOMIC ADVISER TOLD REPORTERS IN WASHINGTON WE'LL PROBABLY HAVE A REASONABLE RATE OF GROWTH FOR THE REST OF THE YEAR BUT THERE IS SOME SLUGGISHNESS NOW HE ATTRIBUTED THE SLUGGISHNESS TO THE WEAKNESS IN EUROPE WHICH IS HURTING EXPORTS AND US INDUSTRY'S DRIVE TO IMPROVE PRODUCTIVITY WHICH IS HAMPERING THE CREATION OF JOBS IN THE SHORTRUN THE CONVENTIONAL WISDOM SEEMS TO BE THAT ECONOMIC GROWTH THIS YEAR WILL BE SOME WHERE UP IN THE NEIGHBORHOOD OF 3 HE SAID FROM WHAT I HEAR THAT'S PROBABLY NOT A BAD GUESS ALTHOUGH MR CLINTON TOOK PRIDE IN WINNING SUPPORT FROM THE BUSINESS COMMUNITY DURING THE PRESIDENTIAL CAMPAIGN THE EXECUTIVES HERE GAVE A HARSH ASSESSMENT OF HOW THE ADMINISTRATION IS DOING SO FAR NOT SURPRISINGLY MANY EXECUTIVES ARGUED THAT THE CLINTON ECONOMIC PLAN WOULD RAISE TAXES TOO MUCH AND REDUCE FEDERAL SPENDING TOO LITTLE ROBERT ALLEN CHAIRMAN OF AMERICAN TELEPHONE & TELEGRAPH CO SAID THE PUBLIC WANTS FAR DEEPER SPENDING CUTS TO REDUCE THE BUDGET DEFICIT THAN THE ADMINISTRATION IS SEEKING I THINK THE PEOPLE IN WASHINGTON MISSED THIS POINT HE SAID H LAURANCE FULLER THE CHAIRMAN OF OIL GIANT AMOCO CORP CRITICIZED THE ADMINISTRATION'S PROPOSED ENERGY TAX NOTING THAT THE PETROLEUM INDUSTRY HAS LOST ROUGHLY 500000 JOBS IN THE PAST FIVE YEARS HE SAID OBVIOUSLY IN THAT KIND OF ENVIRONMENT WE'RE NOT LOOKING FORWARD TO SUCH A LEVY BUT THE BIGGEST SOURCE OF WORRY IT SEEMS IS OVER THE ADMINISTRATION'S COMING PROPOSAL TO OVERHAUL THE HEALTHCARE SYSTEM THE PLAN IS SURE TO DOMINATE THE BUSINESS COUNCIL MEETING WHICH CONTINUES INTO SATURDAY HILLARY RODHAM CLINTON WHO IS HEADING THE WHITE HOUSE HEALTHCARE TASK FORCE IS SCHEDULED TO ADDRESS THE COUNCIL TODAY LAST NIGHT THE EXECUTIVES SAID THAT WHILE THEY WANTED ALL AMERICANS TO HAVE HEALTH COVERAGE THEY ARE UPSET THAT THE CORPORATE COMMUNITY MIGHT BE ASKED TO FOOT MOST OF THE BILL THE ADMINISTRATION IS CONSIDERING A PAYROLL TAX TO FINANCE HEALTH COVERAGE FOR EVERYONE THE ADMINISTRATION HAS TO BE CAREFUL OF DUMPING THE COST OF THIS ONTO THE EMPLOYER GE'S MR WELCH WARNED D WAYNE CALLOWAY CHAIRMAN OF PEPSICO INC ECHOED THOSE FEARS WE ARE VERY NERVOUS ABOUT THE MEANS TO PAY FOR THE HEALTHCARE PROGRAM MANY APPEARED BEFUDDLED OVER THE COURSE THE WHITE HOUSE WANTS TO TAKE ON HEALTH CARE BUT THEY WERE ADAMANT ABOUT ONE THING NO NEW TAXES I AM OPPOSED TO ANY NEW TAXES TO PAY FOR HEALTHCARE REFORM DECLARED RALPH LARSEN CHAIRMAN OF JOHNSON & JOHNSON INSTEAD HE AND OTHERS SUGGESTED THAT THE ADMINISTRATION FIRST ATTACK WASTE IN THE NATION'S 800 BILLION HEALTHCARE SYSTEM WHEN THE ADMINISTRATION TRIES TO SELL ITS HEALTHCARE AGENDA IT WILL NEED BUSINESS COMMUNITY BACKING BUT SOME EXECUTIVES ARE SKEPTICAL ABOUT MANAGED COMPETITION THE AMALGAM OF REGULATION AND FREEMARKET FORCES THAT IS SURE TO BE AT THE HEART OF THE CLINTON PLAN MOST COMPETITION THAT'S EFFECTIVE ISN'T MANAGED SAID JOHN SNOW CHAIRMAN OF CSX CORP I JUST HAVE NO CONFIDENCE IN GOVERNMENT'S ABILITY TO COME UP WITH AN EFFECTIVE SOLUTION 9305100113 930510 WHO'S NEWS ACC CORP ACC CORP ROCHESTER NY THIS TELECOMMUNICATIONS SERVICES CONCERN SAID THOMAS H DAVIS 45 YEARS OLD RESIGNED AS PRESIDENT OF ACC LONG DISTANCE LTD A DIVISION OF ITS CANADIAN UNIT ACC TELENTERPRISES THE COMPANY ALSO SAID STEVEN KEREKES 36 RESIGNED AS EXECUTIVE VICE PRESIDENT BOTH MEN SAID THEY LEFT TO PURSUE PERSONAL INTERESTS ROBERT C WATSON 36 WAS NAMED PRESIDENT OF THE DIVISION HE FORMERLY WAS EXECUTIVE VICE PRESIDENT OF CABLE & WIRELESS TELECOMMUNICATIONS A UNIT OF CABLE AND WIRELESS PLC 9305100112 930510 INTERNATIONAL ISRAEL STEPS UP WEST BANK JOBS PROGRAM AS CLOSED BORDER ADDS TO UNEMPLOYMENT BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JENIN ISRAELIOCCUPIED WEST BANK WHEN THE ISRAELI GOVERNMENT CREATED A JOBS PROGRAM TO PROVIDE EMPLOYMENT FOR PALESTINIANS IN THE WEST BANK AND GAZA STRIP ABDULLAH AMORI WAS ONE OF THE FIRST TO BE HIRED BUT THE 55YEAROLD CONSTRUCTION WORKER SOON DISCOVERED THAT HIS NEW JOB IN THE WEST BANK CITY OF JENIN DIDN'T MATCH UP TO WORKING IN ISRAEL IN ISRAEL HE HAD EARNED 56 A DAY DOING SKILLED WORK ON CONSTRUCTION SITES IN THE TEL AVIV AREA NOW HE MAKES 1125 FOR AN EIGHTHOUR WORKDAY DIGGING HOLES AND LAYING SEWAGE PIPES NEAR THE PALESTINIAN REFUGEE CAMP WHERE HE LIVES IN THIS CITY OF 45000 THE GOVERNMENT'S PROGRAM AIMS TO PROVIDE TENS OF THOUSANDS OF JOBS FOR PALESTINIANS WHO HAVE BEEN BARRED FOR MORE THAN A MONTH FROM ENTERING ISRAEL TO GO TO WORK AFTER A SPATE OF VIOLENT ATTACKS AGAINST ISRAELIS THE GOVERNMENT CLOSED THE BORDERS AND SO FAR HAS ISSUED PERMITS FOR ONLY 38000 OUT OF THE 110000 PALESTINIANS WHO HOLD JOBS IN ISRAEL TO RETURN TO WORK WE HAVE BEEN TOLD BY THE GOVERNMENT TO PLAN FOR A LONGTERM SEMIPERMANENT CLOSURE SAYS BRIG GEN GADI ZOHAR THE HEAD OF THE ISRAELI CIVIL ADMINISTRATION IN THE WEST BANK WE ARE URGENTLY TRYING TO CREATE NEW JOBS HERE IN THE JENIN AREA 30000 PALESTINIANS USED TO WORK IN ISRAEL ONLY HALF OF THEM LEGALLY THE REST SLIPPED ACROSS THE BORDER AND PERFORMED MENIAL JOBS SHUNNED BY MOST ISRAELIS USUALLY WORKING FOR LESS THAN THE MINIMUM WAGE CLOSE TO 3 MILLION HAVE BEEN EARMARKED UNDER THE NEW PROGRAM TO FUND 25 PUBLIC WORKS PROJECTS IN THE TOWN INCLUDING A SEWAGE SYSTEM A WATER SYSTEM REPLACING THE ELECTRICITY GRIDS IN THE REFUGEE CAMP NEW ROADS AND ADDITIONAL ROOMS IN THE SCHOOLS THE OBJECTIVE IS TO CREATE 1000 NEW JOBS WITHIN SIX MONTHS IF PEOPLE AREN'T ALLOWED TO WORK IF THEY DON'T GET THE OPPORTUNITY TO HAVE HONORABLE OCCUPATIONS THERE IS GOING TO BE AN EXPLOSION HERE SAYS LT COL YONI FOGEL THE MILITARY GOVERNOR OF JENIN BOTH THE ISRAELIS AND PALESTINIANS ACKNOWLEDGE THAT THE PROGRAM FALLS FAR SHORT OF WHAT IS NEEDED UNEMPLOYMENT IS RUNNING AT 50 IN THE WEST BANK AND EVEN HIGHER IN THE GAZA STRIP ACCORDING TO PALESTINIAN ECONOMISTS JENIN MAYOR ABDALLAH LAHLOUH SAYS THAT HIS OFFICE RECEIVED MORE THAN 2500 APPLICATIONS FOR THE NEW POSITIONS IN TWO DAYS ONLY 250 PLACES WERE AVAILABLE HE ESTIMATES THAT IT WILL TAKE 15 MILLION AND 3000 NEW JOBS IN ORDER TO MAKE A SIGNIFICANT DENT IN THE TOWN'S UNEMPLOYMENT PROBLEM PALESTINIANS WHO HAVE BEEN ABLE TO FIND WORK IN JENIN SAY THE WAGES CAN'T COMPETE WITH THOSE OFFERED IN ISRAEL WHERE WORKERS TYPICALLY MADE THE EQUIVALENT OF 450 TO 600 A MONTH COMPARED WITH 225 IN THE WEST BANK AN ENGINEER WORKING IN CITY HALL SAYS HIS PAY IS HALF OF WHAT HE EARNED FOR SIMILAR WORK IN ISRAEL SAMIR ABDUL AMORI 28 YEARS OLD EARNED 30 A DAY WORKING IN CONSTRUCTION IN ISRAEL COMPARED TO 22 IN JENIN MANY OF US THINK IT'S GOOD THAT THE ISRAELIS AND THE PALESTINIANS ARE SEPARATED HE SAYS BUT IT'S HARD TO GET BY ON THESE WAGES TAWFIQ ABU MASHAYEKH WHO RUNS A CONCRETE FACTORY IN JENIN SAYS THE JOBS PROGRAM IS A GOOD IDEA BUT REQUIRES SIGNIFICANTLY MORE FUNDING TO SUCCEED WE NEED MUCH MORE INVESTMENT IN ORDER TO PROVIDE ENOUGH JOBS FOR WORKERS IN JENIN PEOPLE WHO HAVE JOBS ARE MAKING A THIRD OF WHAT THEY EARNED IN ISRAEL WITHOUT MORE INVESTMENT THIS WON'T PROVIDE A SOLUTION FOR ENOUGH FAMILIES HE SAYS A RECENT SURVEY BY PALESTINIAN ECONOMISTS AT ANNAJAH UNIVERSITY IN NABLUS ESTIMATED THAT 3 BILLION IS NEEDED IN ORDER TO CREATE NEW JOBS IN THE WEST BANK AND GAZA STRIP AND 10 BILLION FOR BUILDING SORELY LACKING INFRASTRUCTURE LAST YEAR 376 MILLION TO 489 MILLION OF THE CIVIL ADMINISTRATION'S 1881 MILLION BUDGET WENT FOR DEVELOPMENT IN THE WEST BANK AND GAZA STRIP THE CIVIL ADMINISTRATION BUDGET IS FUNDED BY PALESTINIAN TAXES IN ORDER TO GET THE JOB WORKS PROGRAM OFF THE GROUND THE DEVELOPMENT BUDGET HAS BEEN INCREASED TO 60 MILLION THIS YEAR AND THE CABINET AGREED TO FREE UP THE MONEY ALL AT ONCE INSTEAD OF SPREADING IT OUT OVER THE COURSE OF A YEAR WE KNOW IT'S NOT ENOUGH AND WE REALIZE IT WILL BE DIFFICULT FOR US TO RESOLVE ALL THESE PROBLEMS BY OURSELVES BUT WE BELIEVE THIS PROGRAM COMBINED WITH THE RETURN OF SOME WORKERS TO JOBS IN ISRAEL WILL HELP EASE THE CURRENT SITUATION SAYS BRIG GEN ZOHAR HE ADDED THAT RECENT PLEDGES BY THE US AND EUROPE TO PROVIDE 20 MILLION IN EMERGENCY AID TO THE OCCUPIED TERRITORIES WOULD HELP 9305100111 930510 COSMETIC CENTER INC SALES SAVAGE MD COSMETIC CENTER INC SAID COMPARABLESTORE SALES FOR THE MONTH ENDED APRIL 23 WERE FLAT AT 63 MILLION WHILE TOTAL SALES ROSE 11 TO 71 MILLION THE RETAILER OF COSMETICS FRAGRANCES AND BEAUTY AIDS SAID IT IS CONTINUING TO EMPHASIZE RETAILING ITEMS WITH HIGHER GROSS PROFIT MARGINS ALTHOUGH SOME OF THE ITEMS MAY BE SOLD AT LOWER RETAIL PRICES 9305100110 930510 WHO'S NEWS NUCLEAR SUPPORT SERVICES INC NUCLEAR SUPPORT SERVICES INC CAMPBELLTOWN PA DONALD E LYONS 63 YEARS OLD AND JOE E BRYSON 49 WERE ELECTED TO THE BOARD INCREASING ITS SIZE TO NINE MR LYONS NOW RETIRED HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COMBUSTION ENGINEERING INC'S POWER SYSTEMS GROUP WINDSOR CONN MR BRYSON IS SENIOR VICE PRESIDENT OF NUCLEAR SUPPORT SERVICES AND PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY'S HENZE SERVICES INC UNIT KENNESAW GA NUCLEAR SUPPORT SERVICES PROVIDES SERVICE SUPPORT TO THE NUCLEAR FOSSILFUEL AND PROCESSING INDUSTRIES 9305100109 930510 WORTHEN COMPLETES MERGER LITTLE ROCK ARK WORTHEN BANKING CORP SAID IT COMPLETED ITS MERGER WITH UNION OF ARKANSAS CORP FOR 46 MILLION SHARES OF WORTHEN STOCK WORTHEN SAID THE PROCESS OF MERGING THE TWO BANK HOLDING COMPANIES' OPERATING SUBSIDIARIES INTO A SINGLE BANK WON'T TAKE PLACE UNTIL ON OR ABOUT JUNE 1 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING FRIDAY WORTHEN CLOSED AT 2550 DOWN 25 CENTS 9305100108 930510 WHO'S NEWS BREED TECHNOLOGIES INC BREED TECHNOLOGIES INC BOONTON TOWNSHIP NJ THIS MAKER OF CRASH SENSORS USED IN AUTOMOTIVE AIRBAG SYSTEMS NAMED EDWARD H MCFADDEN 50 YEARS OLD TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT OF FINANCE MR MCFADDEN PREVIOUSLY WAS CHIEF FINANCIAL OFFICER OF CASE CORP A HEAVYMACHINERY DIVISION OF TENNECO INC IN RACINE WIS 9305100107 930510 MARKETING & MEDIA ADVERTISING SERIES OF READER TESTIMONIAL ADS CAUGHT IN BUSINESS WEEK CROSSFIRE BY KEVIN GOLDMAN BUSINESS WEEK THOUGHT IT HIT UPON A PERFECT IF NOT EXACTLY NOVEL WAY TO PITCH THE MAGAZINE TO POTENTIAL SUBSCRIBERS MAKE VIDEOTAPES OF TOPFLIGHT BUSINESS LEADERS CROWING ABOUT THE PUBLICATION AND USE THEM IN TELEVISION AND PRINT ADS BUT A MAJOR SNAFU KILLED THE ENTIRE PROJECT LAST WEEK SHORTLY AFTER ONE OF THE CHOSEN A LEADING FEMALE MONEY MANAGER CHASTISED EXECUTIVES FROM BUSINESS WEEK'S PARENT MCGRAWHILL AT A SHAREHOLDERS' MEETING FOR NOT PROMOTING ENOUGH WOMEN THROUGH THE RANKS LAST WEDNESDAY A WEEK AFTER THE APRIL 28 DRESSING DOWN BY JOAN E LAPPIN THE PRESIDENT OF GRAMERCY CAPITAL MANAGEMENT CORP SHE SAYS SHE RECEIVED A TELEPHONE CALL FROM MCGRAWHILL CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOSEPH L DIONNE WHO TOLD HER SHE WOULD BE PULLED FROM THE COMMERCIALS JACK PATTON PUBLISHER OF BUSINESS WEEK SAYS THAT REMOVING ONE PERSON FROM THE CAMPAIGN NEGATES THE WHOLE MESSAGE AND SO THE SERIES DIED MS LAPPIN IS CRYING FOUL SAYING HER ONSCREEN APPEARANCE WAS QUASHED BECAUSE OF HER CANDOR MR DIONNE WAS OUT OF THE OFFICE FRIDAY AND COULDN'T BE REACHED FOR COMMENT BUT MCGRAWHILL EXECUTIVES SAY SHE WAS DROPPED BECAUSE THEY DIDN'T KNOW MS LAPPIN'S COMPANY OWNS OR CONTROLS ABOUT 300000 SHARES OF MCGRAWHILL STOCK AND THE COMMERCIAL WOULD APPEAR AS IF SHE IS TRYING TO BOOST THE STOCK'S VALUE THE EPISODE WHICH HAS LEFT BOTH SIDES BITTER ILLUSTRATES THE PITFALLS OF USING SOCALLED REAL PEOPLE IN ADVERTISING AS ENDORSERS BUSINESS WEEK IS POISED TO LAUNCH A MAJOR SOCALLED IMAGE CAMPAIGN FROM NEW YORK AGENCY TED CHIN & CO ORIGINALLY THE ENDORSEMENT SPOTS WERE TO BE PART OF A SEPARATE BUT RELATED EFFORT TO BOOST CIRCULATION WHICH CURRENTLY STANDS DOMESTICALLY AT 886229 ABOUT FLAT FROM LAST YEAR ACCORDING TO THE AUDIT BUREAU OF CIRCULATIONS THE NEW IMAGE SPOTS WHICH ARE SCHEDULED TO BE FINALIZED AT THE END OF THIS MONTH WILL CARRY THE TAG LINE BUSINESS WEEK BEYOND NEWS INTELLIGENCE IN AN INTERVIEW MR PATTON DECLINED TO OFFER DETAILS ABOUT THE SPOTS BUT SAID THEY ARE DESIGNED TO BREAK THROUGH THE NOISE LAST YEAR BUSINESS WEEK WAS AT BEST A MODEST ADVERTISER IN TRYING TO LURE NEW READERS SPENDING 17 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TRACKS AD SPENDING THE EFFORT THIS YEAR WILL LIKELY BOOST THAT FIGURE ALTHOUGH MR PATTON WOULDN'T SAY BY HOW MUCH BUT CLEARLY BY HAVING OUTSIDE EXECUTIVES APPEAR IN TESTIMONIAL ADS BUSINESS WEEK WANTED TO RAISE ITS VISIBILITY IN THE CROWDED MAGAZINE FIELD THE EFFORT BEGAN WELL ENOUGH LAST FEBRUARY WHEN BUSINESS WEEK CONTACTED MS LAPPIN AND OTHER EXECUTIVES FROM WHAT WAS DESCRIBED BY THE SPOTS' PRODUCER AS HOTGROWTH COMPANIES RUSSELL SIMMONS THE RAP MUSIC ENTREPRENEUR WHO HEADS RUSH COMMUNICATIONS EDWARD MASSEY PRESIDENT OF US HOMECARE AND JORDAN WEISSMAN HEAD OF VIRTUAL WORLD ENTERTAINMENT ALL WERE ASKED TO EXPOUND ON WHAT THEY ENJOYED ABOUT BUSINESS WEEK THEIR COMMENTS WOULD BE VIDEOTAPED AND INCLUDED IN A MAJOR DIRECT MARKETING CAMPAIGN COMPRISING 60SECOND AND TWOMINUTE SPOTS THAT WERE SCHEDULED TO RUN ON CNBC THE BUSINESS CABLE CHANNEL OWNED BY GENERAL ELECTRIC'S NBC UNIT AND TURNER BROADCASTING SYSTEM'S ALLNEWS CNN AS WELL AS A MAJOR BROADCAST NETWORK MS LAPPIN THE ONLY FEMALE EXECUTIVE AMONG THOSE PICKED EASILY PASSED THE AUDITION A PRODUCER AND CREW FROM TOTAL PICTURE CO VISITED MS LAPPIN'S OFFICES IN MIDTOWN MANHATTAN AND A CONTRACT WAS EXECUTED NO FEE WAS PAID BUT THAT DIDN'T BOTHER MS LAPPIN BECAUSE SHE SAYS SHE HAS RECEIVED FAVORABLE COVERAGE FROM BUSINESS WEEK FOR SEVERAL YEARS A FEW WEEKS LATER SHE APPEARED IN A DOWNTOWN STUDIO TO SHOOT THE SPOT SHE SPENT TWO TO THREE HOURS ANSWERING QUESTIONS ABOUT BUSINESS WEEK IN A LETTER DATED APRIL 12 TINA RAGSDALE A PRODUCER AT TOTAL PICTURE TOLD MS LAPPIN THAT SENIOR BUSINESS WEEK EXECUTIVES INCLUDING THE PUBLISHER ARE ECSTATIC WITH OUR ROUGH CUTS OF THE COMMERCIALS THEN MS LAPPIN DECIDED TO GO PUBLIC WITH A SUBJECT SHE IS PASSIONATE ABOUT THE LACK OF FEMALE EXECUTIVES AT MCGRAWHILL ALTHOUGH SHE SAYS SHE HAS SPOKEN WITH COMPANY EXECUTIVES FOR YEARS ABOUT THE SITUATION SHE DELIVERED HER SALVO AT THE MCGRAWHILL ANNUAL SHAREHOLDERS MEETING COINCIDENTALLY HELD ON TAKE OUR DAUGHTERS TO WORK DAY HER 17YEAROLD DAUGHTER JESSICA WAS THERE SHE CRITICIZED THE BOARD FOR HAVING ONLY ONE TOKEN WOMAN A POOR CHOICE OF WORDS SHE LATER ADMITS AND I COULD EMBARRASS YOU AND ASK YOU HOW MANY PEOPLE REPORT TO THE ONE WOMEN EXECUTIVE OFFICER OF MCGRAWHILL BUT I ALREADY KNOW THE ANSWER THE ANSWER IS ONE A SECRETARY THE CALL FROM MR DIONNE CAME A WEEK LATER AS MS LAPPIN RECALLS HE BEGAN BY SAYING THIS ISN'T A PLEASANT CALL BUT THE DECISION HAS BEEN MADE TO REMOVE YOU FROM THE AD IN AN INTERVIEW ON FRIDAY BOB LANDES EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL AT MCGRAWHILL SAID THE FIRST TIME BUSINESS WEEK BECAME AWARE MS LAPPIN OWNED OR CONTROLLED A LARGE CHUNK OF MCGRAWHILL SHARES WAS AT THE SHAREHOLDERS' MEETING WHEN SHE ANNOUNCED IT THERE WERE OTHER PEOPLE HERE WHO KNEW THAT SHE WAS CONTROLLING MCGRAWHILL STOCK SAYS MR LANDES BUT THEY WEREN'T INVOLVED IN PRODUCING THE COMMERCIAL FROM AN ETHICAL AND CONFLICT POINT OF VIEW HE CONTINUES I THOUGHT IT WAS UNTENABLE IT IS JUST NOT THE RIGHT THING TO DO MR LANDES SAYS THAT THIS ISN'T A CASE OF MS LAPPIN BEING PUNISHED ALTHOUGH HE CONCEDES SHE PROBABLY DOESN'T BELIEVE THAT MS LAPPIN SAYS IT IS RIDICULOUS TO THINK MCGRAWHILL OFFICIALS DIDN'T KNOW ABOUT HER STOCK INVESTMENTS WITH THE COMPANY WHICH ARE OVER A YEAR OLD THEY ARE USUALLY MENTIONED IN ARTICLES ABOUT HER FOR ONE THING FOR ANOTHER IT IS EASILY OBTAINED PUBLIC INFORMATION THIS IS AN UNPOPULAR DECISION WE HAD TO MAKE SAYS MR LANDES THE DECISION TO SCRAP THE ENTIRE TESTIMONIAL CAMPAIGN CAME LATE LAST WEEK BECAUSE OF THE POTENTIAL CONFLICT OF INTEREST QUESTIONS DOES MS LAPPIN WHO ADMITS SHE LIKED HER ONCAMERA EXPERIENCE HAVE ANY REGRETS NONE ABOUT SAYING WHAT I DID SHE SAYS IT'S TOO BAD THEY DON'T WANT TO CONFRONT THE MESSAGE SO THE CONCLUSION IS TO KILL THE MESSENGER WOMEN IN COMMUNICATIONS FIELDS EARN CONSIDERABLY LESS THAN MEN AT EVERY STAGE IN THEIR CAREERS ACCORDING TO A SURVEY OF 2000 MEN AND WOMEN WORKING AT AD AGENCIES AND ON THE BUSINESS SIDE OF PRINT AND BROADCAST MEDIA COMPANIES THE INCOME GAP BETWEEN MEN AND WOMEN GROWS STEADILY LARGER AS THEIR CAREERS PROGRESS ACCORDING TO THE SURVEY WHICH WAS COMMISSIONED BY THE ADVERTISING WOMEN OF NEW YORK THE STUDY FOUND A GAP OF 6700 BETWEEN THE MEDIAN INCOMES OF MEN AND WOMEN EMPLOYED FOR LESS THAN FIVE YEARS IN THE INDUSTRY 28000 VS 21300 A GAP OF 12600 AT FIVE TO NINE YEARS IN THE INDUSTRY 49400 VS 36800 A GAP OF 21700 AT 10 TO 19 YEARS 72900 VS 51200 AND A GAP OF 31700 AT 20 OR MORE YEARS 97400 VS 65700 THE DISPARITY WAS GREATEST AT PRINT MEDIA COMPANIES THE STUDY FOUND THE MEDIAN SALARY FOR MEN WAS 91100 VS 54000 FOR WOMEN A DIFFERENCE OF 37100 AT AD AGENCIES THE MEDIAN FOR MEN WAS 73400 VS 38500 FOR WOMEN A DIFFERENCE OF 34900 IN BROADCASTING THE GAP WAS SMALLEST THE MALE MEDIAN WAS 49400 VS THE FEMALE MEDIAN OF 33400 A DIFFERENCE OF 16000 CONSOLIDATION THE FOODS DIVISION OF AMERICAN HOME PRODUCTS CORP REASSIGNED ITS GROCERY ACCOUNTS FROM INTERPUBLIC GROUP'S LCF&L NEW YORK TO THE OTHER TWO AMERICAN HOME FOODS AGENCIES WARWICK BAKER & FIORE NEW YORK WON ACCOUNTS INCLUDING CRUNCH & MUNCH POPCORN POLANER JELLIES AND MAYPO AND WHEATENA CEREALS YOUNG & RUBICAM NEW YORK PICKED UP THE DENNISON'S CHILI AND CHEF BOYARDEE PIZZA MIX AND PACKAGED DINNERS ACCOUNTS AMERICAN HOME SPENDS AN ESTIMATED 35 MILLION ON ITS GROCERY ADVERTISING OUR LONGTERM NEEDS WERE BEST SERVED BY THE CONSOLIDATION A COMPANY SPOKESWOMAN SAID REMINGTON PITCH CONTENDERS EMERGED IN THE PITCH FOR REMINGTON PRODUCTS ESTIMATED 10 MILLION TO 15 MILLION ACCOUNT INDUSTRY EXECUTIVES SAID AT LEAST SEVEN NEW YORK AGENCIES MADE A FIRST ROUND OF PRESENTATIONS TO THE BRIDGEPORT CONN SHAVER COMPANY INCLUDING ALLY & GARGANO AYER BOZELL GREY ADVERTISING AND TOWNE SILVERSTEIN ROTTER GREY WAS THE LAST AGENCY TO HANDLE THE ACCOUNT WHICH HAS LATELY BEEN HANDLED INHOUSE A DECISION DATE ISN'T KNOWN REMINGTON EXECUTIVES DIDN'T RETURN CALLS PUBLISHING DEAL NEW YORK TIMES CO'S CUSTOM PUBLISHING UNIT HAS SIGNED A MULTIYEAR AGREEMENT WITH INTERNATIONAL BUSINESS MACHINES CORP TO PRODUCE TWO CONTROLLEDCIRCULATION MAGAZINES IBM STARTED UP LAST YEAR BEYOND COMPUTING FOR TECHNOLOGY EXECUTIVES AT BIG COMPANIES AND PROFIT FOR SMALL BUSINESSES THE TIMES UNIT WHICH WON'T HAVE ANY EQUITY IN THE MAGAZINES IS PROVIDING EDITORIAL CIRCULATION MARKETING AND ADVERTISINGSALES SERVICES IBM WILL HAVE EDITORIAL AND PUBLISHING INPUT AND RETAIN OWNERSHIP FURTHER TERMS OF THE CONTRACT WEREN'T AVAILABLE 9305100106 930510 ITALIAN INSURER'S '92 NET ROSE MILAN ASSICURAZIONI GENERALI SPA ITALY'S LARGEST INSURANCE COMPANY SAID PARENT COMPANY NET PROFIT ROSE 24 IN 1992 TO 3898 BILLION LIRE 2681 MILLION FROM 3806 BILLION LIRE IN 1991 GENERALI ALSO SAID IT WILL PAY A CASH DIVIDEND OF 350 LIRE PER SHARE UP 84 FROM 190 LIRE A YEAR EARLIER 9305100105 930510 WHO'S NEWS PRIME HOSPITALITY CORP PRIME HOSPITALITY CORP FAIRFIELD NJ DAVID A SIMON PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS GIVEN THE ADDITIONAL TITLE OF CHAIRMAN OF THE HOTEL COMPANY SUCCEEDING ALLEN J OSTROFF MR OSTROFF A SENIOR VICE PRESIDENT OF PRUDENTIAL REALTY GROUP A SUBSIDIARY OF PRUDENTIAL INSURANCE COMPANY OF AMERICA WILL CONTINUE AS A DIRECTOR HE HAD BEEN NAMED CHAIRMAN IN NOVEMBER PRIME HOSPITALITY IS THE SUCCESSOR OF PRIME MOTOR INNS WHICH COMPLETED ITS PLAN OF REORGANIZATION IN AUGUST AFTER NEARLY TWO YEARS UNDER BANKRUPTCYCOURT PROTECTION MR SIMON ALSO WAS WITH THE PREDECESSOR COMPANY PRIME OWNS AND OPERATES 34 HOTELS AND MANAGES 50 OTHERS IN THE NORTHEAST AND FLORIDA INCLUDING WELLESLEY INNS AND AMERISUITES 9305100104 930510 MASCOTT CORP CANCELS OFFERING LIVINGSTON NJ MASCOTT CORP SAID IT IS DROPPING PLANS FOR AN OFFERING OF 1250000 SHARES CITING POOR STOCKMARKET CONDITIONS THE OWNER AND OPERATOR OF RESTAURANTS AND FRANCHISE BAKERIES SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO WITHDRAW ITS REGISTRATION STATEMENT FOR THE OFFERING ALL THE SHARES WERE TO BE SOLD BY THE COMPANY MASCOTT SHARES CLOSED FRIDAY AT 1125 DOWN 125 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9305100103 930510 SUZUKI GETS A ROCKY START IN HUNGARY FIRST JAPANESE CAR VENTURE IN EAST FACES PROBLEMS WITH WORKERS MARKET BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL ESZTERGOM HUNGARY STRIDING DOWN A CORRIDOR IN MAGYAR SUZUKI'S CAVERNOUS NEW CAR PLANT HERE RYOZO TOHJI STOPS TO GLARE AT A PILE OF CARDBOARD VERY UNTIDY HE GRUMBLES YOU CAN SEE HOW MUCH WORK WE STILL HAVE TO DO HERE THE PLACE IS PRISTINE BY HUNGARIAN STANDARDS BUT TRY TELLING THAT TO MR TOHJI ONE OF THE VENTURE'S JAPANESE BOARD MEMBERS AS THE FIRST JAPANESE CAR MAKER TO PLUNGE INTO EASTERN EUROPE IN SUCH A BIG WAY SUZUKI MOTOR CORP IS TRYING TO TRANSPLANT ITS STYLE OF PRODUCTION INCLUDING ITS NOTORIOUS TIDINESS TO THE NEW PLANT BUT LAPSES IN NEATNESS ARE THE LEAST OF SUZUKI'S PROBLEMS THE FIRST HUNGARIANS SENT TO JAPAN FOR TRAINING NEARLY MUTINIED OVER THE RAPID PACE OF WORK AND JAPANESE FOOD WORKERS STILL GRUMBLE ABOUT CONDITIONS HERE INCLUDING THE LACK OF EXTRA PAY FOR MOST OVERTIME WORK AND SUZUKI'S PARTIAL SMOKING BAN WHICH SEEMS UNNATURAL TO HUNGARY'S NICOTINEHAPPY WORKERS THE JAPANESE MENTALITY JUST DOESN'T SEEM TO CLICK WITH HUNGARIANS SAYS AN OFFICIAL AT A COMPETING CAR MAKER THE 235 MILLION PLANT WHICH OFFICIALLY OPENED FRIDAY THOUGH IT HAS BEEN PRODUCING CARS IN A STARTUP PHASE SINCE OCTOBER REMAINS ONE OF THE PREMIER FOREIGN INVESTMENTS IN HUNGARY ONLY ONE OTHER AUTO COMPANY GENERAL MOTORS CORP IS INVESTING IN CAR PRODUCTION IN THIS FORMERLY COMMUNIST COUNTRY BUT THE PROBLEMS SUZUKI HAS ENCOUNTERED SO FAR UNDERSCORE THAT EVEN THE JAPANESE OFTEN VIEWED AS INVINCIBLE IN THE CAR INDUSTRY CAN STUMBLE YOU HAVE TO WONDER WHETHER SUZUKI WOULD DO THIS AGAIN IF THEY HAD IT TO DO OVER SAYS ZSUZSA KAPITANY AN EASTERN EUROPEAN AUTO INDUSTRY SPECIALIST AT THE HUNGARIAN ACADEMY OF SCIENCES IN BUDAPEST TO BE SURE SUZUKI REMAINS A LONELY PIONEER RATHER THAN THE VANGUARD OF A JAPANESE INVASION NO OTHER JAPANESE CAR COMPANY HAS JOINED THEM IN BUILDING NEW CAPACITY IN EASTERN EUROPE AND IT'S UNLIKELY ANY WILL FOLLOW SOON THREE YEARS AGO THE ONLY WAY SUZUKI COULD HOPE TO GAIN A SERIOUS FOOTHOLD IN HUNGARY WAS TO AGREE TO BUILD CARS HERE AT THE TIME THE HUNGARIANS STILL TIGHTLY CONTROLLED IMPORTS AND FOREIGN CAR MAKERS HAD TO SHOW THEY COULD OFFSET THE BALANCEOFPAYMENTS EFFECTS OF THEIR DOMESTIC SALES THE GOVERNMENT ALSO COURTED SUZUKI OFFERING HEFTY TAX BREAKS AND EVEN PROVIDING THE BUILDING SITE A FORMER SOVIET TANK BASE BUT THIS COZY ARRANGEMENT CRUMBLED ALMOST OVERNIGHT WHEN HUNGARY LIBERALIZED AUTO IMPORTS HUNGARIANS NOW HAVE A FULL ARRAY OF NEW AND USED CARS TO CHOOSE FROM AT THE SAME TIME SUZUKI'S PRICES ABOUT 800000 FORINTS 9360 FOR ITS DOMESTICALLY PRODUCED BASE MODEL ARE LOFTY FOR HUNGARIANS FOR THAT KIND OF MONEY SAYS MS KAPITANY MANY HUNGARIANS PREFER AN OLD VOLKSWAGEN OR BMW MS KAPITANY ALSO CONTENDS SUZUKI MISJUDGED THE TASTE AND PERHAPS GIRTH OF THE AVERAGE HUNGARIAN THE CARS THEY'RE PRODUCING HERE ARE SIMPLY TOO SMALL SHE SAYS ESPECIALLY FOR THE HUNGARIAN WHO IS GOING OUT TO BUY HIS FIRST CAR WHICH IS PROBABLY A FAMILY CAR MOREOVER MANY ANALYSTS CONTEND SUZUKI OVERESTIMATED THE POTENTIAL OF THE HUNGARIAN MARKET THE COMPANY PLANS TO BUILD 50000 CARS A YEAR IN HUNGARY BY 1995 WITH AT LEAST HALF EARMARKED FOR HUNGARY BUT THE HUNGARIAN NEW CAR MARKET IS NOW ONLY ABOUT 45000 CARS A YEAR INCLUDING SOME 10000 EASTERN MODELS SUCH AS RUSSIANMADE LADAS WITH NEW CAR SALES ONLY EXPECTED TO GROW SLOWLY IN COMING YEARS ANALYSTS SAY SUZUKI WILL PROBABLY HAVE TO EXPORT MOST OF ITS CARS BUT THAT MAY BE FRAUGHT WITH PROBLEMS IF SUZUKI IS LOOKING AT HUNGARY AS A JUMPINGOFF POINT FOR SUPPLYING OTHER MARKETS THEY'LL HAVE TO WRESTLE WITH THE KIND OF QUALITY THEY CAN SUPPLY FROM THERE SAYS PATRICK BYRNE DIRECTOR FOR EASTERN EUROPE AT FORD OF EUROPE THE FORD MOTOR CO UNIT MAKES PARTS IN HUNGARY BUT HAS SHIED AWAY FROM BUILDING CARS IN THE REGION MR BYRNE SAYS QUALITY PROBLEMS OFTEN HAUNT RELATIVELY SMALLSCALE OPERATIONS LIKE SUZUKI'S BECAUSE SO MANY PARTS ARE PRODUCED ELSEWHERE SUCH PROBLEMS CLASH WITH THE TYPICAL IMAGE OF JAPAN'S CAR MAKERS USUALLY VIEWED AS FIERCE COMPETITORS IN EUROPE BECAUSE OF THEIR SHREWD ABILITY TO ESTABLISH THEMSELVES IN KEY MARKETS AND INDEED SUZUKI HAS SUCCESSFULLY BUILT UP PRODUCTION IN SUCH DIVERSE PLACES AS CANADA AND INDIA IT WOULD CERTAINLY BE WRONG TO DISCOUNT THEM SAYS MS KAPITANY BECAUSE THEY MAY HAVE A LONGTERM PLAN NOBODY IS AWARE OF OR CAN FORESEE BUT FOLLOWING MR TOHJI THROUGH THE PLANT IT'S CLEAR HE HAS HIS MIND ON MORE IMMEDIATE ISSUES LIKE GETTING HIS COSTS UNDER CONTROL OUR COST OF PRODUCTION HERE IS ABOUT THE SAME AS IN JAPAN BUT IT SHOULD BE MUCH CHEAPER PART OF THE PROBLEM IS THAT THE FACTORY IS STILL IN A STARTUP PHASE AND RUNNING AT A FRACTION OF CAPACITY WHICH MAGNIFIES COSTS BUT ONE OF THE IRONIES OF INVESTING IN OPERATIONS LIKE THIS IS THAT THE INFLATED EXPENSE OF THINGS LIKE SHIPPING PARTS FROM JAPAN WILL CONTINUE TO CUT INTO SUZUKI'S BOTTOM LINE THE COMPANY ONCE PLEDGED TO SOURCE 60 OF PARTS LOCALLY BUT THE SHORTAGE OF HUNGARIAN SUPPLIERS ABLE TO MEET SUZUKI'S EXACTING STANDARDS HAS MADE THAT IMPOSSIBLE MR TOHJI FIGURES LESS THAN 40 OF PARTS COME FROM LOCAL SUPPLIERS THE SUBJECT IS SO CONTROVERSIAL THAT SUZUKI EVEN PUT TOGETHER A DISPLAY INSIDE THE FACTORY TO SHOW ALL THE PARTS PRODUCED LOCALLY THE ITEMS LAID OUT NEATLY ON BLUE TABLECLOTHS INCLUDE WIRING HARNESSES SEATS PLASTIC PARTS AND THE COMPANY'S BLUEANDWHITE UNIFORMS ANOTHER STICKY ISSUE IS WAGES SUZUKI FIGURED HUNGARIANS WOULD BE HAPPY TO HAVE SECURE JOBS EVEN IF THE PAY WAS ONLY MARGINALLY HIGHER THAN THE HUNGARIAN AVERAGE BUT WORKERS EXPECTED MUCH MORE AT A FOREIGN COMPANY ESPECIALLY SINCE THEY ARE REQUIRED TO WORK HARDER AND LONGER THAN AT HUNGARIAN FACTORIES DESPITE THE WORKER COMPLAINTS ABOUT PAY MR TOHJI INSISTS THE COMPANY IS SATISFIED WITH ITS LOCAL WORK FORCE HE PRAISES HUNGARIANS FOR THEIR TECHNICAL SKILL AND HARD WORK INCLUDING PUTTING IN THE UNPAID OVERTIME NEEDED TO MEET PRODUCTION TARGETS BUT EVEN HE ADMITS THERE WERE COMMUNICATION PROBLEMS EARLY ON WE HAD TO CHANGE THE WAY WE INTRODUCE WORKERS TO OUR IDEAS SAYS MR TOHJI FOR EXAMPLE RATHER THAN BUNDLING NEW HIRES OFF TO JAPAN IMMEDIATELY THE COMPANY NOW BEGINS TRAINING IN MORE FAMILIAR SURROUNDINGS THE FACTORY HERE 9305100102 930510 INTERNATIONAL WASHINGTON INSIGHT CLINTON FACES PRICKLY ISSUE OF TIBET IN DEBATE OVER CHINA'S TRADE STATUS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DEBATE OVER RENEWING CHINA'S TRADE STATUS CATCHES PRESIDENT CLINTON BETWEEN HIS CAMPAIGN PROMISES TO STAND UP TO BEIJING'S HARSH RULERS AND HIS EFFORTS TO REACH AN ACCOMMODATION WITH THEM TIBET IS ONE OF THE BIGGEST TESTS OF WHETHER MR CLINTON CAN STRIKE A BALANCE DURING THE CAMPAIGN MR CLINTON CHASTISED CHINA'S BRUTAL SUBJUGATION OF TIBET LAST MONTH AT THE INSISTENCE OF DEMOCRATIC SEN DANIEL MOYNIHAN OF NEW YORK THE SENATE INSERTED INTO A BILL TO EXTEND CHINA'S MOST FAVORED NATION TRADE STATUS A NEW CONDITION LANGUAGE THREATENING TO CUT OFF FREETRADE RELATIONS AFTER A YEAR IF BEIJING DOESN'T MOVE TO STOP THE INFLUX OF CHINESE SETTLERS INTO TIBET LAWMAKERS SAID THE CHINESE MIGRATION THREATENS THE SURVIVAL OF TIBETAN CULTURE ALTHOUGH A COMPANION HOUSE BILL CONTAINS MILDER LANGUAGE 200 HOUSE MEMBERS RECENTLY SIGNED A LETTER URGING MR CLINTON TO ADOPT THE TOUGHER STANCE SUCH LANGUAGE IS UNACCEPTABLE TO CHINA WHICH CONSIDERS TIBET PART OF ITS TERRITORY CHINA'S LEADERS WHO WATCHED THE DISSOLUTION OF THE SOVIET UNION ARE DETERMINED TO PREVENT A SIMILAR FATE FOR THEIR OWN EMPIRE CHINA MAY WELL DIG IN ITS HEELS ON THIS ISSUE JEOPARDIZING ADMINISTRATION EFFORTS TO COAX IT TOWARD A MORE ACCEPTABLE APPROACH TO HUMAN RIGHTS GENERALLY WEAPONS PROLIFERATION AND TRADE WINSTON LORD THE ASSISTANT SECRETARY OF STATE FOR EAST ASIAN AND PACIFIC AFFAIRS IS EXPECTED TO ARRIVE IN CHINA TODAY TO DISCUSS THESE ISSUES WITH CHINESE LEADERS PRESIDENT CLINTON MUST TELL CONGRESS BY JUNE 4 WHETHER HE INTENDS TO RENEW CHINA'S MOST FAVORED NATION TRADE STATUS IN PREVIOUS YEARS CONGRESS VOTED TO IMPOSE VARIOUS CONDITIONS ON APPROVING THE TRADE STATUS ONLY TO HAVE THEM VETOED BY PRESIDENT BUSH THIS YEAR LAWMAKERS WANT MR CLINTON TO TELL BEIJING THAT THE WHITE HOUSE WILL EXTEND MOST FAVORED NATION ONLY ON THE CONDITION THAT CHINA IMPROVES ITS BEHAVIOR HOW HARD SHOULD MR CLINTON PUSH CHARGES MADE BY TIBET'S DALAI LAMA THAT CHINA IS COMMITTING CULTURAL GENOCIDE IN TIBET HAVE A SPECIAL RESONANCE AS THE US THREATENS MILITARY ACTION TO STOP ETHNIC CLEANING IN BOSNIA AND MR CLINTON CAN'T AFFORD TO ALIENATE SEN MOYNIHAN WHO FEELS PASSIONATELY ABOUT TIBET MR CLINTON NEEDS THE SENATOR WHO IS CHAIRMAN OF THE FINANCE COMMITTEE TO HELP ENACT MUCH OF HIS DOMESTIC ECONOMIC PROGRAM INCLUDING TAX INCREASES ON THE OTHER HAND POWERFUL VOICES ARE URGING THE WHITE HOUSE TO AVOID PUSHING CHINA TOO HARD AN ARMY OF BUSINESS LOBBYISTS ARGUE THAT TRADE WITH CHINA PRODUCED ABOUT 150000 US JOBS LAST YEAR AT THE SAME TIME THE US WHICH HAS AN 18 BILLION TRADE DEFICIT WITH BEIJING IS A LUCRATIVE MARKET FOR CHINA MR CLINTON ALSO IS BEING PRESSED BY JAPAN AND HONG KONG TO AVOID ISOLATING CHINA THEY SAY THE WAY TO INFLUENCE CHINA'S BEHAVIOR IS TO REMAIN ENGAGED WITH IT FORMER PRESIDENT BUSH TRIED THAT APPROACH BUT THERE IS MOUNTING EVIDENCE THAT IT DOESN'T WORK IN AUGUST CHINA AGREED TO PERMIT THE US TO MONITOR WHETHER IT WAS VIOLATING THE LAW BY USING PRISON LABOR TO MAKE GOODS SHIPPED TO THE US SINCE THEN US OFFICIALS HAVE ASKED TO INSPECT FIVE PRISONS BUT HAVE BEEN PERMITTED TO VISIT ONLY ONE THEIR ACCESS WAS SO LIMITED DURING THAT ONE VISIT THAT THEY HAVE REQUESTED ANOTHER INSPECTION CHINA HASN'T YET AGREED MEANWHILE ACCORDING TO A CONGRESSIONAL AIDE CHINA HAS BACKED OFF COMMITMENTS TO RESTRICT ITS SALES OF MISSILES AND HIGH TECHNOLOGY WEAPONS FOR INSTANCE BEIJING APPEARS TO BE PROCEEDING WITH A SALE OF M11 MEDIUMRANGE MISSILE SYSTEMS TO PAKISTAN IN TIBET CHINA IS FLOODING THE CAPITAL LHASA AND OTHER IMPORTANT URBAN AREAS WITH CHINESE THUS MAKING TIBETANS A MINORITY IN THESE AREAS SAYS ELLIOT SPERLING A PROFESSOR OF TIBETAN STUDIES AT HARVARD ASIA WATCH A HUMANRIGHTS MONITORING GROUP TOLD CONGRESS LAST SUMMER THAT THE HUMAN RIGHTS SITUATION IN TIBET APPEARS TO BE DETERIORATING EVEN AS THE STANDARD OF LIVING RISES GIVEN CHINA'S BEHAVIOR DEMOCRATS AND HUMANRIGHTS MONITORS WANT TO MAKE SURE THAT MR CLINTON PRESSES BEIJING HARD WHILE HOPING THE PRESIDENT WILL TAKE THE LEAD THEY'RE READY IF NECESSARY TO PUSH SANCTIONS LEGISLATION JUST AS THEY DID WITH A RECALCITRANT PRESIDENT BUSH 9305100101 930510 VARITY TO BUILD PLANT OVERSEAS BUFFALO NY VARITY CORP SAID ITS KELSEYHAYES GROUP UNIT WILL BUILD ITS EUROPEAN ANTILOCK BRAKE SYSTEMS PLANT IN HEERLEN THE NETHERLANDS THE COST WASN'T DISCLOSED BUT VARITY SAID IT ALREADY HAS LANDED BUSINESS IT VALUES AT 110 MILLION A YEAR THE PLANT WILL EMPLOY 160 PEOPLE VARITY EXPECTS TO COMPLETE THE PLANT IN 1994'S FIRST QUARTER WITH PRODUCTION SLATED TO BEGIN IN MAY THE PLANT WILL BE ABLE TO CHURN OUT ONE MILLION UNITS A YEAR BY 1996 9305100100 930510 BUSINESS BRIEF VALHI HAD 603 MILLION 1STPERIOD LOSS PROJECTS DEFICITS FOR REMAINDER OF YEAR DALLAS VALHI INC REPORTED A FIRSTQUARTER LOSS OF 603 MILLION AND PROJECTED LOSSES FOR THE REST OF THE YEAR LARGELY BECAUSE OF DEPRESSED CHEMICAL PRICES AND HIGH INTEREST EXPENSE AT ITS NL INDUSTRIES INC AFFILIATE BUT THE FIRSTQUARTER LOSS FOR VALHI WHICH AMOUNTED TO 53 CENTS A SHARE WAS NARROWER THAN THE YEAREARLIER LOSS OF 715 MILLION OR 63 CENTS A SHARE THE YEAREARLIER LOSS BY VALHI A HOLDING COMPANY CONTROLLED BY DALLAS FINANCIER HAROLD SIMMONS INCLUDED A ONETIME CHARGE OF 698 MILLION OR 61 CENTS A SHARE FOR AN ACCOUNTING CHANGE AND MR SIMMONS SAID THE COMPANY'S LOSS FOR ALL OF 1993 WON'T BE AS LARGE AS 1992'S 983 MILLION LOSS WHICH INCLUDED THE ACCOUNTING CHARGE FIRSTPERIOD REVENUE TUMBLED 12 TO 1713 MILLION FROM 1956 MILLION THE LATEST QUARTER'S LOSS INCLUDED A PRETAX CHARGE OF 84 MILLION FOR WHAT THE COMPANY DESCRIBED AS AN OTHER THAN TEMPORARY IMPAIRMENT IN THE MARKET VALUE OF NL A HOUSTON CHEMICALS CONCERN THAT IS 49OWNED BY VALHI AND 18OWNED BY TREMONT CORP ANOTHER VALHI AFFILIATE BECAUSE OF RECESSIONARY ECONOMIC CONDITIONS INCLUDING HIGH GERMAN INTEREST RATES DECLINING GROSS DOMESTIC PRODUCT IN KEY EUROPEAN MARKETS AND RELATIVE FOREIGNCURRENCY EXCHANGE RATES VALHI SAID IT EXPECTS A MORE PROLONGED PERIOD OF PRICE WEAKNESS THAN PREVIOUSLY BELIEVED FOR NL'S MAIN PRODUCT TITANIUM DIOXIDE PIGMENTS AS A RESULT VALHI SAID IT EXPECTS NL'S STOCK PRICE TO CONTINUE TO BE DEPRESSED NL INDUSTRIES CLOSED AT 4375 UP 125 CENTS FRIDAY MR SIMMONS SAID MOST OF VALHI'S WHOLLY OWNED UNITS IN REFINED SUGAR FOREST PRODUCTS FAST FOOD AND HARDWARE ARE EXPECTED TO HAVE INCREASED SALES AND PROFITS IN 1993 TREMONT A 48OWNED TITANIUM PRODUCER AND BENTONITE MINER BASED IN DENVER WILL SHOW AN OPERATING PROFIT HE SAID BUT THOSE GAINS WILL BE MORE THAN OFFSET BY SHARING THE LOSSES AT NL EVERYTHING WILL BE PROFITABLE EXCEPT NL INDUSTRIES MR SIMMONS SAID MR SIMMONS SAID CHEMICAL PRICES IN NORTH AMERICA HAVE STRENGTHENED SOME BUT PRICES IN EUROPE ARE STILL DEPRESSED AS A RESULT NL'S LOSSES MAY BE GREATER THAN THE 38 MILLION DEFICIT IT HAD LAST YEAR BEFORE THE EFFECTS OF A CHANGE IN ACCOUNTING PRINCIPLES RELATED TO POSTRETIREMENT BENEFITS HE SAID 9305100099 930510 BRITISH NEWCAR SALES FALL LONDON NEWCAR SALES IN BRITAIN SLIPPED 19 IN APRIL FROM A YEAR EARLIER ACCORDING TO INDUSTRY DATA THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS SAID SALES OF PASSENGER VEHICLES AS MEASURED BY NEWCAR REGISTRATIONS SLIPPED TO 135469 IN APRIL FROM 138106 IN THE YEAREARLIER MONTH APRIL'S DROP WAS THE FIRST MONTHLY DECLINE SINCE SEPTEMBER FORD MOTOR CO SOLD 28507 UNITS IN BRITIAN IN APRIL DOWN FROM 32488 A YEAR EARLIER GENERAL MOTORS CORP'S SALES WERE VIRTUALLY FLAT IN APRIL AT 24141 UNITS COMPARED WITH 24316 IN APRIL 1992 9305100098 930510 FDA'S PROBE PROMPTS RED CROSS TO AGREE TO TIGHTEN ITS BLOODSAFETY PROCEDURES BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE AMERICAN RED CROSS RESPONDING TO GOVERNMENT FINDINGS THAT IT HAS VIOLATED BLOODSAFETY LAWS AGREED TO TIGHTEN ITS PROCEDURES TO ENSURE THE SAFETY OF ITS BLOOD SUPPLY THE FOOD AND DRUG ADMINISTRATION ANNOUNCING THE CONSENT DECREE SAID THAT THE BLOOD SUPPLY IS SAFE AND THAT THE RED CROSS HAS ALREADY MADE A SUBSTANTIAL COMMITMENT TO ACCOMPLISHING MANY OF THE GOALS IN THE AGREEMENT THE FDA'S CONCERNS INVOLVED LACK OF SAFEGUARDS AND INADEQUATE RECORDKEEPING NOT AN INCREASE IN THE AMOUNT OF TAINTED BLOOD FOR ANY PATIENT REQUIRING A BLOOD TRANSFUSION THE RISK OF NOT RECEIVING THAT TRANSFUSION OUTWEIGHS THE RISK OF RECEIVING BLOOD SAID FDA COMMISSIONER DAVID KESSLER STILL THE AGENCY SAID THAT ITS INVESTIGATORS FOUND VIOLATIONS OF LAWS AND REGULATIONS AT VARIOUS RED CROSS FACILITIES DESPITE A VOLUNTARY 1988 AGREEMENT IN WHICH THE RED CROSS AGREED TO CORRECT PROBLEMS BROUGHT TO LIGHT AT THAT TIME IN THE NEW CONSENT DECREE THE RED CROSS AGREED TO ESTABLISH A COMPREHENSIVE QUALITYASSURANCE PROGRAM AND TO IMPROVE ITS MANAGEMENT AND EMPLOYEE TRAINING IT ALSO WILL WORK ON ITS COMPUTER SYSTEMS AND ITS POLICIES FOR INVESTIGATING AND REPORTING ERRORS ACCIDENTS AND ADVERSE REACTIONS THE DECREE WHICH INCLUDES TIMETABLES FOR MAKING THE CHANGES WILL BE ENFORCEABLE BY COURT ORDER FRED KYLE THE RED CROSS'S SENIOR VICE PRESIDENT OF BIOMEDICAL SERVICES SAID THE AGREEMENT ESTABLISHES PRIORITIES CONSISTENT WITH A 140 MILLION TRANSFORMATION PROGRAM LAUNCHED BY THE ORGANIZATION TWO YEARS AGO IN THE AGE OF AIDS NOTHING ABOUT BLOOD CAN BE BUSINESSASUSUAL EITHER IN BLOOD BANKING OR IN OUR GOVERNMENT HE SAID WE WILL LEAVE NO STONE UNTURNED IN OUR EFFORT TO MEET THE GOALS SET OUT BY THE FDA SEPARATELY MEMBERS OF A JOINT FDA ADVISORY COMMITTEE WERE SPLIT ON WHETHER TO RECOMMEND THAT THE AGENCY REQUIRE LABELING OF MILK FROM COWS THAT HAVE BEEN INJECTED WITH GENETICALLY ALTERED HORMONES THE AGENCY HASN'T YET DECIDED WHETHER TO ALLOW THE USE OF SUCH HORMONES WHICH INCREASE MILK PRODUCTION THE HORMONES ARE PRODUCED BY MONSANTO CO AMERICAN CYANAMID CO UPJOHN CO AND ELI LILLY & CO THE PANEL WHICH CONSISTED OF THE FDA'S FOOD ADVISORY COMMITTEE AND VETERINARY MEDICINE ADVISORY COMMITTEE DIDN'T TRY TO REACH A CONSENSUS ON WHAT TO RECOMMEND MANY MEMBERS ESSENTIALLY SAID THAT USE OF THE BOVINE GROWTH HORMONE DOESN'T ALTER MILK AND DOESN'T RESULT IN ANY HEALTH CONSEQUENCES FOR CONSUMERS THEY ALSO SAID THAT LABELING WOULDN'T PROVIDE USEFUL INFORMATION THESE PANELISTS VOICED WORRIES THAT LABELING WOULD BE DIFFICULT TO ENFORCE AND COULD HAVE SIGNIFICANT UNWANTED IMPLICATIONS FOR OTHER PRODUCTS ESPECIALLY BIOENGINEERED ONES OTHERS HOWEVER ARGUED THAT CONSUMERS HAVE A RIGHT TO KNOW WHETHER THEIR MILK HAS BEEN PRODUCED WITH THE HORMONES THIS GROUP GENERALLY CONTENDED THAT USE OF THE HORMONES DOES ALTER MILK AND THAT LABELING COULD BE ACCOMPLISHED AND ENFORCED PRACTICALLY THE QUESTION OF WHETHER TO ALLOW THE USE OF THE HORMONE HAS BEEN HOTLY DEBATED BY BOTH CONSUMER GROUPS AND DAIRY PRODUCERS AS WELL AS WITHIN THE FDA FOR SOME TIME IT ISN'T CLEAR WHEN THE FDA WILL DECIDE THE ISSUE 9305100097 930510 TECHNOLOGY MOODY'S LOWERS RATINGS OF NEC JAPAN PC MAKER BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO MOODY'S INVESTORS SERVICE INC CAST ANOTHER BIG VOTE OF NO CONFIDENCE IN JAPAN'S SLUMPING ELECTRONICS INDUSTRY DOWNGRADING THE LONGTERM AND SHORTTERM DEBT OF AILING NEC CORP THE NATION'S LARGEST MAKER OF SEMICONDUCTORS AND PERSONAL COMPUTERS THE RATINGS SERVICE LOWERED NEC'S LONGTERM DEBT RATING TO SINGLEA3 FROM SINGLEA2 AND ITS SHORTTERM RATING TO PRIME2 FROM PRIME1 THE MOVE AFFECTS 31 BILLION WORTH OF NEC DEBT AND 200 BILLION YEN 182 BILLION OF THE COMPANY'S JAPANESE SHELF REGISTRATION NEC DECLINED TO COMMENT ON MOODY'S ACTION THE DOWNGRADE IS THE SECOND THAT MOODY'S HAS ISSUED ON A MAJOR JAPANESE ELECTRONICS COMPANY IN THE PAST THREE WEEKS ON APRIL 15 MOODY'S KNOCKED DOWN BY TWO NOTCHES ITS LONGTERM DEBT RATING FOR CONSUMER ELECTRONICS GIANT MATSUSHITA ELECTRIC INDUSTRIAL CO THAT DOWNGRADE STRIPPED MATSUSHITA OF ITS PRIZED TRIPLEA RATING AND AFFECTED 74 BILLION OF ITS DEBT JAPAN'S TECHNOLOGY COMPANIES HAVE BEEN PUMMELED BY AN EXTENDED DROUGHT IN DOMESTIC DEMAND FOR ELECTRONICS GOODS NEC IS AMONG THE HARDEST HIT IN MARCH IT FORECAST A GROUP NET LOSS OF 43 BILLION YEN FOR THE FISCAL YEAR THAT ENDED MARCH 31 ITS FIRST GROUP NET LOSS IN 18 YEARS IT WILL ANNOUNCE ITS OFFICIAL EARNINGS FOR THE FISCAL YEAR THIS MONTH TATSUYA MIZUNO A SENIOR MOODY'S ANALYST SAID THE RATINGS SERVICE BELIEVES NEC'S GRIP ON ITS KEY BUSINESSES WILL CONTINUE TO WEAKEN FOR INSTANCE NEC CURRENTLY HOLDS MORE THAN 50 OF THE JAPANESE MARKET FOR PCS BUT IT FACES A BRUISING PRICE WAR FROM SUCH US COMPANIES AS COMPAQ COMPUTER CORP DELL COMPUTER CORP AND INTERNATIONAL BUSINESS MACHINES CORP ONE OF THE MAJOR REASONS NEC HAD SUCH A GOOD STRONG POSITION WAS THAT OTHER FIRMS FACED THE BARRIER OF THE JAPANESE LANGUAGE MR MIZUNO SAID NOW THAT NEC'S US COMPETITORS HAVE INTRODUCED PCS CAPABLE OF HANDLING JAPANESELANGUAGE SOFTWARE HE SAID THESE BARRIERS HAVE ALMOST DISAPPEARED NEC'S ADVANTAGE HAS BEEN REDUCED SIGNIFICANTLY SIMILARLY MR MIZUNO EXPRESSED DOUBT THAT NEC CAN CAPITALIZE ON RECENT HIGH DEMAND FOR ANOTHER KEY PRODUCT MEMORY CHIPS SALES OF WHICH HAVE SURGED AS A RESULT OF A PC BOOM IN THE US WHILE PRICES FOR MEMORY CHIPS HAVE RISEN RECENTLY HE SAID NEC WILL HAVE TO MAKE HUGE ADDITIONAL INVESTMENTS TO DEVELOP FUTURE GENERATIONS OF CHIPS AND MOODY'S DOESN'T EXPECT SUCH OUTLAYS TO PAY A BIG RETURN MOODY'S ALSO DOWNGRADED THE SHORTTERM DEBT OF NEC INDUSTRIES NETHERLANDS BV A EUROPEAN FINANCE SUBSIDIARY OF THE JAPANESE COMPANY 9305100096 930510 DAEWOO HOLDING SUBWAY TALKS SEOUL SOUTH KOREA'S DAEWOO HEAVY INDUSTRIES IS HOLDING TALKS WITH A CHINESE COMPANY ABOUT JOINTLY PRODUCING ELECTRIC SUBWAY CARS WORTH 300 MILLION DAEWOO OFFICIALS SAID ACCORDING TO THE OFFICIALS THE CHANGCHUN PASSENGER CAR MANUFACTURING FACTORY IS SEEKING A TECHNICAL LINKUP WITH DAEWOO TO BUILD 308 ELECTRIC CARS FOR A SUBWAY LINE IN IRAN ACCORDING TO THE PROPOSAL FROM THE CHINESE COMPANY DAEWOO OFFICIALS SAID DAEWOO WILL BUILD 176 OF THE SUBWAY CARS WHILE CHANGCHUN BUILDS THE REST WITH TECHNICAL HELP FROM DAEWOO 9305100095 930510 MAN RAY PHOTOGRAPH AT RECORD LONDON A PHOTOGRAPH BY US SURREALIST MAN RAY SOLD FOR 193895 IN LONDON A RECORD FOR ANY SINGLE PHOTOGRAPH THE RARE VINTAGE BLACKANDWHITE PRINT IS A CLOSEUP OF A WOMAN'S FACE DOTTED WITH GLASS TEARS THE PHOTOGRAPH CIRCA 1930 WAS SOLD BY SOTHEBY'S HOLDINGS INC AUCTION HOUSE TO AN ANONYMOUS BUYER BIDDING OVER THE TELEPHONE IT HAD BEEN ESTIMATED TO SELL FOR ABOUT 31000 TO 63000 THE PRICE ECLIPSED THE PREVIOUS WORLD AUCTION RECORD OF 181000 SET LAST YEAR FOR A PHOTOGRAPH BY RUSSIAN AVANTGARDE ARTIST ALEXANDER RODCHENKO 9305100094 930510 WHO'S NEWS VULCAN INTERNATIONAL CORP VULCAN INTERNATIONAL CORP WILMINGTON DEL LEONARD ACONSKY 62 YEARS OLD VICE PRESIDENT AND TECHNICAL DIRECTOR OF WITCO CORP WAS NAMED A DIRECTOR OF THIS FIRM WHOSE VULCAN CORP UNIT WHICH MAKES SHOE LASTS HEELS SOLES AND OTHER RUBBER AND PLASTIC PRODUCTS AND BOWLING PINS HE SUCCEEDS ROLAND GRAVENKEMPER WHO RETIRED VULCAN INTERNATIONAL'S BOARD SIZE REMAINS AT NINE 9305100093 930510 CANADA'S JOBLESS RATE JUMPED TO 114 IN APRIL FUELING FEARS ABOUT RECOVERY BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S UNEMPLOYMENT RATE JUMPED TO 114 OF THE WORK FORCE IN APRIL HEIGHTENING CONCERN ABOUT THE STRENGTH OF THE COUNTRY'S RECOVERY THE APRIL FIGURE WAS THE HIGHEST UNEMPLOYMENT RATE SINCE DECEMBER WHEN IT WAS 115 SAID STATISTICS CANADA THE GOVERNMENT AGENCY THAT COMPILES THE LABOR DATA IN MARCH THE RATE WAS 11 MIKE MCCRACKEN PRESIDENT OF THE ECONOMIC CONSULTING FIRM INFORMETRICA LTD SAID THE WEAK APRIL JOB FIGURES RAISED THE POSSIBILITY OF A SLIDE BACK INTO A RECESSION THIS HAS GOT TO BE A CONCERN OF THE GOVERNMENT HE SAID EMPLOYMENT IN APRIL SHOWED ITS FIRST DECLINE IN NINE MONTHS DROPPING 43000 OR 03 FROM MARCH HARDEST HIT WAS THE MERCHANDISING INDUSTRY WHERE EMPLOYMENT FELL IN APRIL FOR THE SIXTH CONSECUTIVE MONTH DROPPING 31000 FROM MARCH UNLESS THE ECONOMY SHOWS GREATER THAN EXPECTED STRENGTH IN COMING MONTHS THE JOB MARKET IS EXPECTED TO REMAIN WEAK COMPANIES ARE CONTINUING TO ANNOUNCE LAYOFFS AND THE FEDERAL AND PROVINCIAL GOVERNMENTS ARE CUTTING THEIR WORK FORCES TO REDUCE THEIR DEFICITS FOR EXAMPLE GENERAL MOTORS OF CANADA LTD A UNIT OF GENERAL MOTORS CORP CLOSED ITS SCARBOROUGH VAN PLANT IN THE TORONTO AREA LAST WEEK PUTTING 2800 PEOPLE OUT OF WORK FINANCE MINISTER DON MAZANKOWSKI REJECTED DEMANDS FROM OPPOSITION POLITICAL PARTIES FOR NEW GOVERNMENT MEASURES TO CREATE JOBS HE SAID HE DIDN'T BELIEVE THE APRIL EMPLOYMENT DECLINE SIGNALED AN ECONOMIC SLOWDOWN WE SEE THE ECONOMY STRENGTHENING ON A BROAD BASIS HE TOLD THE HOUSE OF COMMONS THE GROSS DOMESTIC PRODUCT OR TOTAL VALUE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES ROSE AT AN ANNUAL RATE OF ABOUT 4 IN THE DECEMBERFEBRUARY PERIOD MR MAZANKOWSKI URGED PROVINCIAL GOVERNMENTS NOT TO JEOPARDIZE THE RECOVERY BY RAISING THEIR TAXES BUT HIS APPEAL ISN'T EXPECTED TO BE HEEDED BY ONTARIO'S LEFTWING NEW DEMOCRATIC PARTY GOVERNMENT THE PROVINCE ACCOUNTS FOR ABOUT 40 OF CANADA'S GDP ONTARIO FINANCE MINISTER FLOYD LAUGHREN SAID HE WILL INTRODUCE A TOUGH BUDGET MAY 19 THAT WILL INCLUDE SUBSTANTIAL TAX INCREASES AS WELL AS SPENDING CUTS TO REDUCE THE PROVINCIAL GOVERNMENT'S BIG DEFICIT JOHN CLINKARD SENIOR ECONOMIST AT CANADIAN IMPERIAL BANK OF COMMERCE WARNED THAT INCREASING TAXES WILL HURT THE ECONOMIC RECOVERY WHICH IS CURRENTLY BEING FUELED BY EXPORTS LARGELY TO THE US HE SAID THE APRIL LABOR DATA INDICATE THAT DOMESTIC DEMAND REMAINS VERY WEAK THE BANK OF NOVA SCOTIA SAID CANADA IS HAVING A JOBLESS RECOVERY IT SAID THE ONLY BRIGHT SPOT IN THE APRIL REPORT WAS IN MANUFACTURING WHERE EMPLOYMENT INCREASED MODESTLY FOR THE SIXTH CONSECUTIVE MONTH RISING 28000 FROM MARCH DESPITE THE GAIN MANUFACTURING EMPLOYMENT IS STILL 313000 BELOW ITS APRIL 1989 PEAK 9305100092 930510 AIRGAS COMFORTABLE' WITH PROFIT ESTIMATES OR FISCAL '93 AND '94 NEW YORK AIRGAS INC IS VERY COMFORTABLE WITH A FISCAL 1993 EARNINGS ESTIMATE OF 75 CENTS A SHARE AND A FISCAL 1994 ESTIMATE OF 90 CENTS PETER MCCAUSLAND CHAIRMAN AND CHIEF EXECUTIVE SAID THE EXECUTIVE SAID HE IS CONFIDENT AIRGAS CAN MEET ANALYSTS' ESTIMATES THAT IT WILL REPORT EARNINGS OF 21 CENTS TO 22 CENTS A SHARE FOR THE FOURTH QUARTER ENDED MARCH 31 IT'S BEEN A REALLY GOOD QUARTER MR MCCAUSLAND SAID IN AN INTERVIEW WE FINISHED THE YEAR ON A VERY STRONG NOTE AIRGAS IS ONE OF THE LARGEST INDEPENDENT DISTRIBUTORS OF INDUSTRIAL MEDICAL AND SPECIALTY GASES IN THE US MR MCCAUSLAND SAID THE COMPANY SAW A PICKUP IN FEBRUARY MARCH AND APRIL HE SAID SALES IN MARCH AT STORES OPEN AT LEAST A YEAR ROSE A COUPLE OF PERCENT THE FIRST TIME AIRGAS HAS HAD A RISE IN SAMESTORE SALES SINCE AUGUST 1990 BARRING A SIGNIFICANT SLOWDOWN IN THE ECONOMY WE COULD MAKE 90 CENTS A SHARE NEXT YEAR MAYBE A LITTLE BETTER THE EXECUTIVE ADDED IN FISCAL 1992 AIRGAS EARNED 52 CENTS A SHARE ON A FULLY DILUTED BASIS AFTER GIVING EFFECT TO A 2FOR1 STOCK SPLIT PAID IN NOVEMBER ON A PRIMARY BASIS FISCAL 1992 NET INCOME WAS 55 CENTS A SHARE IN THE FIRST NINE MONTHS OF FISCAL 1993 THE COMPANY EARNED 55 CENTS AIRGAS CLEARLY HAS BENEFITED FROM THE PICKUP IN ECONOMIC ACTIVITY MR MCCAUSLAND SAID THE COMPANY'S GEOGRAPHIC DIVERSITY AND ITS WIDERANGING CUSTOMER MIX INSULATE IT FROM THE CYCLICALITY THAT DOMINATES MOST CHEMICALRELATED BUSINESSES WE SELL TO ALMOST EVERY CONCEIVABLE BUSINESS MR MCCAUSLAND SAID HE NOTED THAT ITS MOST CONCENTRATED CUSTOMER BASE IS THE METAL FABRICATION INDUSTRY WHICH ACCOUNTS FOR ABOUT A QUARTER OF AIRGAS'S SALES HE SAID THAT BECAUSE THE COMPANY OPERATES FROM 24 HUB LOCATIONS NO REGIONAL RECESSION WILL HAVE A MAJOR IMPACT AND WHILE MANY CHEMICAL COMPANIES HAVE SUFFERED FROM A PROLONGED INABILITY TO RAISE PRICES AIRGAS HASN'T SUFFERED IN THE LOWINFLATION ENVIRONMENT 9305100091 930510 LAW LEGAL BEAT FIRMS URGE CONGRESS TO ENFORCE UNIFORM RULES IN SOME LEGAL AREAS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL FED UP WITH THE PATCHWORK OF 50 SETS OF STATE LAWS COMPANIES THAT DO BUSINESS NATIONALLY ARE INCREASINGLY URGING CONGRESS AND THE COURTS TO ENFORCE UNIFORM STANDARDS IN SOME MAJOR AREAS OF LAW THE COMPANIES' EFFORTS HIGHLIGHT GROWING DISENCHANTMENT WITH INCONSISTENT STATE LAWS ON EVERYTHING FROM MEDICAL DEVICES TO DIVORCE IT'S ALSO A BIZARRE ABOUTFACE FOR BIG BUSINESS WHICH HAS SUDDENLY FOUND ITSELF FIGHTING FOR MORE FEDERAL REGULATION AFTER DECADES OF TRYING TO FEND IT OFF IF CONGRESS CHOOSES IT CAN EXPLICITLY OVERRIDE STATE LAWS ONE NATIONAL DUMB RULE IS BETTER THAN 50 INCONSISTENT RULES OF ANY KIND SAYS PETER HUTT A LAWYER WITH THE WASHINGTON FIRM COVINGTON & BURLING WHO REPRESENTS TRADE GROUPS IN THE MEDICALDEVICE AND FOOD INDUSTRIES HAVING SEPARATE RULES PLACES A TREMENDOUS BURDEN ON THE REGULATED INDUSTRY TO ASSURE COMPLIANCE LAWYERS SAY THE NEED FOR MORE UNIFORMITY HAS TAKEN ON NEW URGENCY IN RECENT YEARS BECAUSE STATES HAVE BECOME MORE ACTIVE IN IMPLEMENTING HEALTH AND ENVIRONMENTAL RESTRICTIONS ON PRODUCTS SOLD WITHIN THEIR BORDERS CALIFORNIA FOR EXAMPLE NOW REQUIRES LABELING ON THE PACKAGES OF MANY PRODUCTS TO WARN USERS ABOUT LEVELS OF CARCINOGENS AND OTHER TOXINS IN ADDITION LAWYERS SAY INCREASES IN THE NUMBER OF LIABILITY SUITS HAVE LED TO A CONFUSING AND OFTEN CONTRADICTORY ARRAY OF JURY DECISIONS ABOUT THE ADEQUACY OF PRODUCT LABELING AND DESIGNS CONGRESS HAS ALREADY TAKEN OVER SOME AREAS OF LAW INCLUDING COPYRIGHT CIVIL RIGHTS AND SECURITIES REGULATION IN ADDITION IN COMMERCIAL LAW AND NUMEROUS LESS SIGNIFICANT FIELDS SOME STATES HAVE SEPARATELY ADOPTED NEARLY IDENTICAL LEGISLATION BUT AREAS SUCH AS PRODUCTS LIABILITY FAMILY LAW WILLS AND THE REGULATION OF LAWYERING ITSELF REMAIN SUBJECT TO THE IDIOSYNCRACIES OF LEGISLATURES AND COURTS IN THE 50 STATES THE LATEST EFFORT TO TORPEDO INCONSISTENT STATE LAWS IS A BILL INTRODUCED IN CONGRESS LAST MONTH THAT WOULD ESTABLISH UNIFORM LAWS FOR PRODUCT LIABILITY THE PROPOSED NEW LAW WHICH MIRRORS A BILL NARROWLY DEFEATED IN THE SENATE LAST YEAR CALLS FOR A NATIONAL STANDARD ON AWARDING PUNITIVE DAMAGES AND ON ASSESSING LIABILITY AMONG MULTIPLE DEFENDANTS IN PRODUCTLIABILITY SUITS CURRENTLY COURTS DIFFER WIDELY ABOUT WHEN IF AT ALL THEY ALLOW JURIES TO AWARD PUNITIVE DAMAGES WHICH ARE INTENDED TO PUNISH AND DETER PARTICULARLY EGREGIOUS BEHAVIOR THE NEW LAW WOULD ALLOW MANUFACTURERS TO BE ASSESSED SUCH DAMAGES ONLY WHEN A JURY FINDS THEY HAVE EXHIBITED CONSCIOUS FLAGRANT INDIFFERENCE TO THE PUBLIC SAFETY THAT STANDARD TELLS BUSINESSES WHAT CONSTITUTES BEHAVIOR THAT SHOULD BE PUNISHED IT TELLS US THE RULES OF THE GAME SAYS BILL FAY EXECUTIVE DIRECTOR OF THE PRODUCT LIABILITY COORDINATING COMMITTEE A BUSINESS GROUP THAT SUPPORTS THE BILL THE BILL'S SUPPORTERS ALSO CONTEND THAT UNIFORM STANDARDS WILL STOP PLAINTIFFS FROM EVADING LIABILITY REFORMS ENACTED OVER THE PAST DECADE PLAINTIFFS' LAWYERS HAVE MADE SURE THAT WHEN THEY DO LOSE A STATE REFORM EFFORT THEY DON'T EVER LOSE THE SAME ISSUES FROM ONE STATE TO ANOTHER ENABLING THEM TO SHOP AROUND FOR A STATE WITH ADVANTAGEOUS LAWS FOR THEIR CASE SAYS MR FAY THIS KIND OF FORUMSHOPPING IS OFTEN BLAMED FOR MAKING LAWSUITS MORE COSTLY AND PROTRACTED AS LITIGANTS SOMETIMES SPEND MONTHS SIMPLY DEBATING WHERE A CASE SHOULD BE TRIED EFFORTS TO PROMOTE UNIFORMITY ARE IN VOGUE OUTSIDE CORPORATE LAW AS WELL FRUSTRATED BY THE PASTICHE OF STATE LAWS ON CHILD CUSTODY MANY FAMILY LAWYERS HAVE BEEN PUSHING FOR MORE FEDERAL REGULATION DIVORCE REMAINS ALMOST ENTIRELY GOVERNED BY THE STATES BUT CONGRESS ALREADY HAS PASSED SOME LAWS TO PREVENT DIVORCED PARENTS FROM SHOPPING FOR STATES WITH FAVORABLE CUSTODY AND SUPPORT RULES YOU DON'T WANT PEOPLE SNATCHING A KID RUNNING TO ANOTHER JURISDICTION AND GETTING A FRIENDLY COURT PERMITTING THEM TO DO SOMETHING THAT IS OTHERWISE IMPERMISSIBLE IN THEIR HOME STATE SAYS HELEN BREZINSKY A NEW YORK FAMILY LAWYER ON TOP OF LEGISLATIVE EFFORTS ADVOCATES FOR GREATER UNIFORMITY ARE WORKING IN COURT TO EXPAND THE SCOPE OF ALREADY EXISTING FEDERAL REGULATIONS MANUFACTURERS OF MEDICAL DEVICES AND AIRPLANES FOR EXAMPLE HAVE ARGUED THAT JURIES IN CASES THAT CHALLENGE PRODUCT SAFETY SHOULDN'T BE ALLOWED TO SECONDGUESS FEDERAL AGENCIES WHO ALREADY HEAVILY POLICE THEIR PRODUCTS TWO US APPEALS COURTS RULED EARLIER THIS YEAR THAT IF THE FOOD AND DRUG ADMINISTRATION STRINGENTLY REGULATES A MEDICAL DEVICE INJURED USERS GENERALLY CAN'T USE STATE LIABILITY LAWS TO ARGUE ITS DESIGN WAS NEGLIGENT THE DECISIONS GIVE MANUFACTURERS A SINGLE NATIONAL CONTROL SYSTEM FOR OUR MOST IMPORTANT LIFESAVING PHARMACEUTICALTYPE PRODUCTS SAYS MR HUTT HOWEVER ANOTHER APPEALS COURT RECENTLY RULED THAT A PILOT WHO SUFFERED BRAIN DAMAGE IN AN AIRPLANE ACCIDENT COULD SUE THE PLANE'S MANUFACTURER FOR NEGLIGENCE EVEN IF THE PLANE MET FEDERAL AVIATION ADMINISTRATION DESIGN REQUIREMENTS CONSUMER ADVOCATES WORRY THAT THE PUSH FOR UNIFORMITY MAY SIMPLY MASK EFFORTS TO PASS FEDERAL LAWS THAT WIPE OUT PROTECTIONS CONSUMERS AND PLAINTIFFS ENJOY IN MANY STATES IN THE PRODUCT LIABILITY BILL THE UNIFORMITY ISSUE IS REALLY A FAKE SAYS LINDA LIPSEN A LOBBYIST FOR CONSUMERS UNION WHICH PUBLISHES CONSUMER REPORTS MAGAZINE WE ARE GOING TO LOOK AT THE SUBSTANCE OF A REGULATION RATHER THAN THE VENUE OTHER OPPONENTS OF MORE UNIFORMITY CONTEND THAT SWEEPING FEDERAL LAWS STAMP OUT STATES' ABILITIES TO EXPERIMENT AND TO REGULATE BASED ON LOCAL DIFFERENCES BUT LEGAL SPECIALISTS SAY SUCH DIFFERENCES ARE BECOMING LESS RELEVANT NOW THAT SO MANY PRODUCTS AND SERVICES ARE SOLD NATIONALLY UNIFORM LAWS ARE INCREASINGLY APPROPRIATE BECAUSE AS A NATION WE'RE FAR MORE HOMOGENOUS THAN WE WERE EVEN A GENERATION AGO AND CERTAINLY 200 YEARS AGO SAYS RALPH STEINHARDT A LAW PROFESSOR AT GEORGE WASHINGTON UNIVERSITY IT'S REALLY NOW JUST A QUESTION OF WHICH FOOTBALL TEAM YOU ROOT FOR US COMPANIES MAY USE AN INTERNATIONAL TRADE LAW TO ATTACK OTHER US COMPANIES FOR PATENT INFRINGEMENT THE NATION'S TOP PATENT COURT HAS RULED THE RULING BY THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT IN WASHINGTON ENDORSES A HOTLY DEBATED USE OF SECTION 337 OF THE TARIFF ACT THE FIVEYEAROLD FEDERAL LAW GIVES FEDERAL TRADE COMMISSION JUDGES THE AUTHORITY TO BAR THE IMPORTATION OF FOREIGNMADE PRODUCTS THAT ALLEGEDLY VIOLATE US PATENT LAW THE TWIST IN THIS CASE IS THAT THE DEFENDANTS AREN'T FOREIGN COMPANIES BUT US FIRMS WHOSE PRODUCT INCLUDES AN ELEMENT MANUFACTURED ABROAD THE TRADELAW PROCESS IS ATTRACTIVE TO PLAINTIFFS BECAUSE TRADE ACTIONS MUST BE RESOLVED WITHIN 18 MONTHS WHILE COURT CASES CAN DRAG ON FOR MANY YEARS AND BRINGING THE TRADE CASE WHICH DOESN'T PROVIDE FOR MONEY DAMAGES BUT CAN LEAD TO AN ORDER BARRING THE IMPORTATION DOESN'T PRECLUDE THE FILING OF A LAWSUIT AS WELL IN THE UNDERLYING CASE TEXAS INSTRUMENTS INC THE DALLAS CHIP MAKER HAS ACCUSED FIVE US SEMICONDUCTOR COMPANIES OF INFRINGING ON ITS PATENT COVERING A PROCESS USED TO ENCAPSULATE COMPUTER CHIPS IN PLASTIC AMONG OTHER THINGS THE DEFENDANTS ARGUED THAT TEXAS INSTRUMENTS HAD MISUSED THE TRADE LAW THE DEFENDANT COMPANIES CONTENDED THAT THE FACT THE PACKAGING WAS FOREIGNMADE DID NOT ALTER THE MORE IMPORTANT FACT THAT THE CHIPS WERE MADE DOMESTICALLY DONALD K DUVALL OF THE PATENT LAW FIRM KENYON & KENYON IN WASHINGTON SAID THE DECISION ALLOWING THE TRADE ACTION IS LIKELY TO LEAD TO MORE SUCH CASES BECAUSE DOMESTIC INDUSTRIES ARE INCREASINGLY HAVING TO USE OFFSHORE FACILITIES TO PERFORM LABORINTENSIVE ELEMENTS IN THEIR MANUFACTURING PROCESSING NOTED THREE PARTNERS FROM THE LOS ANGELES OFFICE OF PAUL HASTINGS JANOFSKY & WALKER JOINED THE LOS ANGELES OFFICE OF ORRICK HERRINGTON & SUTCLIFFE AS PARTNERS WILLIAM B CAMPBELL IS FORMER HEAD OF PAUL HASTINGS'S LITIGATION DEPARTMENT TODD E GORDINIER AND ELIZABETH W WALKER WILL CONTINUE TO SPECIALIZE IN COMPLEX COMMERCIAL LITIGATION DAVID S DAVENPORT FORMERLY A PARTNER AT THE BOSTON LAW FIRM ROPES & GRAY BECAME A PARTNER IN THE TAX DEPARTMENT OF CHOATE HALL & STEWART A 160ATTORNEY BOSTON FIRM MR DAVENPORT IS A FORMER PROFESSOR AT BOSTON COLLEGE LAW SCHOOL ARTHUR S HAYES CONTRIBUTED TO THIS ARTICLE 9305100090 930510 AIR CANADA SLASHES JOBS CUTS EXECUTIVE RANKS WIDENING ITS FIRSTPERIOD LOSS BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL AIR CANADA TRIMMED ITS EXECUTIVE RANKS AND PROVIDED FOR THE ELIMINATION OF ANOTHER 1000 JOBS THIS YEAR CONTRIBUTING TO A WIDENED FIRSTQUARTER LOSS THE AIRLINE STRUGGLING TO RESTORE ITS FINANCIAL HEALTH ALSO WROTE OFF ITS 10 STAKE IN GPA GROUP PLC AND SAID IT WON'T INVEST FURTHER IN THE TROUBLED IRISH AIRCRAFTLEASING COMPANY IT WAS THE FIRST TIME AIR CANADA HAS SAID PUBLICLY IT WON'T PARTICIPATE IN GPA'S RESTRUCTURING EFFORT AIR CANADA'S C64 MILLION US504 MILLION PROVISION FOR STAFF REDUCTIONS AND THE C80 MILLION GPA WRITEOFF RESULTED IN A FIRSTQUARTER LOSS OF C293 MILLION OR C396 A SHARE ON REVENUE OF C801 MILLION A YEAR AGO THE COMPANY HAD A LOSS OF C164 MILLION OR C223 A SHARE ON REVENUE OF C802 MILLION IN SPITE OF CONTINUING WEAK TRAFFIC OUR MAIN ACHIEVEMENT IN THE FIRST QUARTER WAS TO REDUCE OUR OPERATING LOSS WHICH NARROWED TO C79 MILLION FROM C101 MILLION A YEAR EARLIER SAID HOLLIS HARRIS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE MR HARRIS SAID RECENTLY THAT HE HOPES AIR CANADA WILL BREAK EVEN ON OPERATIONS IN 1993 AND POST A PROFIT IN 1994 LOUIS WERMENLINGER AN ANALYST WITH WOOD GUNDY INC SAID THE FIRSTQUARTER RESULTS INDICATE THE 1994 GOAL MAY BE REACHABLE FRIDAY'S MANAGEMENT SHAKEUP CLEARLY WAS AIMED AT SOFTENING RANKANDFILE RESISTANCE TO FURTHER COSTCUTTING THE MANAGEMENT OVERHAUL REFLECTS THE SAME CHALLENGES FELT BY EMPLOYEES THROUGHOUT THE AIRLINE AS FEWER PEOPLE ARE REQUIRED TO TAKE ON MORE WORK AND MORE RESPONSIBILITIES MR HARRIS SAID THE AIRLINE JETTISONED THREE OF ITS 18 TOP EXECUTIVES AND NAMED JEANJACQUES BOURGEAULT EXECUTIVE VICE PRESIDENT MARKETING AND SALES TO THE NEW POST OF CHIEF OPERATING OFFICER RESPONSIBLE FOR MOST DAYTODAY OPERATIONS CH SIMPSON EXECUTIVE VICE PRESIDENT OPERATIONS TOOK EARLY RETIREMENT AMONG OTHER CHANGES ROB PETERSON TREASURER WAS NAMED VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER AND JOHN F RICKETTS EXECUTIVE VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER IS LEAVING TO PURSUE OTHER CAREER INTERESTS THE COMPANY SAID INCLUDING 500 JOBS PREVIOUSLY SCHEDULED FOR ELIMINATION THIS YEAR UP TO 1500 POSITIONS COULD BE CUT BY YEAREND REDUCING STAFFING TO AROUND 17200 PEOPLE AIR CANADA SAID MORE THAN HALF THE CUTS COULD COME THROUGH VOLUNTARY SEVERANCE PROGRAMS INSTEAD OF LAYOFFSBUT ONLY IF LABOR UNIONS AGREE TO COSTSAVING MEASURES A SPOKESMAN SAID WE'LL TAKE THE LEAST EXPENSIVE ROUTE TO LOWERING THE PAYROLL HE SAID MR HARRIS IN FEBRUARY CALLED FOR 5 SALARY REDUCTIONS FOR ALL EMPLOYEES EFFECTIVE APRIL 1 BUT THE COMPANY'S FOUR MAJOR UNIONS HAVE REFUSED TO GO ALONG AIR CANADA FORMERLY OWNED BY THE CANADIAN GOVERNMENT EMPLOYED NEARLY 24000 BEFORE IT WAS PRIVATIZED IN 1988 MR HARRIS A FORMER DELTA AIR LINES EXECUTIVE HAS WARNED THAT AIR CANADA'S PAYROLL MAY HAVE TO BE SLASHED TO 16000 IF RIVAL CANADIAN AIRLINES INTERNATIONAL CONSUMMATES A PROPOSED LINK WITH AMR CORP PARENT OF AMERICAN AIRLINES CANADIAN A UNIT OF PWA CORP CALGARY ALBERTA MUST COMPLETE A FINANCIAL RESTRUCTURING AND WIN A LEGAL BATTLE INVOLVING AIR CANADA TO COMPLETE THE AMR TRANSACTION 9305100089 930510 MARVEL ENTERTAINMENT GROUP NEW YORK INVESTOR RONALD PERELMAN COMPLETED HIS TENDER OFFER FOR 10 MILLION SHARES OF MARVEL ENTERTAINMENT GROUP INC AT 30 A SHARE RAISING HIS STAKE IN THE COMICBOOK PUBLISHER TO 803 MR PERELMAN'S HOLDING COMPANY MACANDREWS & FORBES HOLDINGS INC SAID MORE THAN 139 MILLION SHARES WERE TENDERED IT SAID 717 OF ALL SHARES TENDERED HAVE BEEN ACCEPTED FOR PAYMENT BUT WON'T HAVE A DEFINITIVE PRORATION FACTOR UNTIL ABOUT MAY 17 AFTER THE DELIVERY PERIOD FOR THE SHARES EXPIRES 9305100088 930510 CONTINENTAL AIR TRAFFIC RISES HOUSTON CONTINENTAL AIRLINES SAID ITS APRIL TRAFFIC INCREASED 27 TO 352 BILLION REVENUE PASSENGER MILES FROM 343 BILLION IN APRIL 1992 A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE THE AIRLINE WHICH EMERGED LAST MONTH FROM BANKRUPTCY PROCEEDINGS SAID ITS LOAD FACTOR OR PERCENTAGE OF SEATS FILLED INCREASED TO 632 FROM 629 FOR THE FIRST FOUR MONTHS OF THE YEAR TRAFFIC WAS DOWN 17 AND THE LOAD FACTOR FELL TO 597 FROM 619 CONTINENTAL FLEW 133 BILLION REVENUE PASSENGER MILES COMPARED WITH 135 BILLION A YEAR EARLIER 9305100087 930510 TANDY'S APRIL SALES ROSE FORT WORTH TEXAS TANDY CORP SAID US SALES FOR APRIL INCREASED 12 TO 2564 MILLION FROM 2287 MILLION LAST YEAR THE CONSUMER ELECTRONICS AND COMPUTER RETAILER SAID SALES AT STORES OPEN FOR MORE THAN ONE YEAR ROSE 2 9305100086 930510 CORNING CHAIRMAN'S LEG SURGERY CORNING NY CORNING INC SAID ITS CHAIRMAN JAMES R HOUGHTON UNDERWENT SUCCESSFUL SURGERY FRIDAY FOR A FRACTURED RIGHT LEG HE SUFFERED WHEN HE WAS HIT BY A CAR MR HOUGHTON 57 YEARS OLD WAS STRUCK BY A CAR THURSDAY NIGHT AS HE WALKED TO HIS HOTEL IN COLONIAL WILLIAMSBURG VA FOLLOWING A MEETING OF THE US BUSINESS COUNCIL THE COMPANY'S MEDICAL DIRECTOR SAID HE EXPECTS A FULL RECOVERY FOR MR HOUGHTON 9305100085 930510 PSI RESOURCES FILES SUIT CHARGING IPALCO MISREPRESENTS BENEFITS OF ITS HOSTILE BID BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL PSI RESOURCES INC FILED A LAWSUIT ALLEGING THAT ITS UNWANTED SUITOR IPALCO ENTERPRISES INC VIOLATED FEDERAL SECURITIES LAWS BY MISREPRESENTING THE POTENTIAL BENEFITS OF IPALCO'S HOSTILE 15 BILLION TENDER OFFER IPALCO PARENT OF INDIANAPOLIS POWER & LIGHT CO SAID IT DENIES ANY WRONGDOING PSI A PLAINFIELD IND UTILITY HOLDING COMPANY AGREED IN DECEMBER TO MERGE WITH CINCINNATI GAS & ELECTRIC CO IN WHAT THE COMPANIES HAVE BILLED AS A MARRIAGE OF EQUALS THAT COMBINATION IN WHICH A NEW COMPANY WOULD BE FORMED HAS YET TO BE APPROVED BY PSI STOCKHOLDERS BUT IPALCO HAS MOVED TO DERAIL THOSE PLANS WITH AN UNSOLICITED 2650ASHARE STOCK AND CASH BID FOR PSI IPALCO DISCLOSED PLANS FOR ITS ALTERNATIVE TENDER OFFER IN MARCH AND FORMALLY LAUNCHED IT IN APRIL AFTER A REGISTRATION STATEMENT CLEARED THE SECURITIES AND EXCHANGE COMMISSION THE OFFER IS SET TO EXPIRE AT JUNE 19 ALTHOUGH AN ACQUISITION COULDN'T BE COMPLETED FOR MANY MONTHS AT LEAST BECAUSE OF THE DENSE TANGLE OF REGULATORY HURDLES THAT FACE ANY UTILITY MERGER AND ESPECIALLY A HOSTILE PURCHASE AS PART OF ITS TAKEOVER DRIVE IPALCO FILED A MARCH LAWSUIT IN FEDERAL COURT IN INDIANAPOLIS SEEKING TO HAVE PSI'S PLANNED MERGER WITH CINCINNATI GAS BARRED ON GROUNDS THAT THE TWO COMPANIES MADE ALLEGEDLY UNTRUE AND MISLEADING STATEMENTS ABOUT THEIR MERGER AND BECAUSE IPALCO CONTENDS THE MERGER VIOLATES INDIANA LAW PSI'S LAWSUIT FILED LATE THURSDAY IS A COUNTERCLAIM TO THE IPALCO LITIGATION A HEARING IS SET FOR JUNE 1 AT WHICH BOTH MOTIONS WILL BE ARGUED PSI ASSERTS THAT IT IS IPALCO WHICH HAS MADE NUMEROUS FALSE AND MISLEADING STATEMENTS IN ITS PROXY SOLICITATIONS INCLUDING PUBLIC COMMENTS AND PUBLISHED ADVERTISEMENTS ON BEHALF OF THE OFFER THE PSI COUNTERSUIT CLAIMS THAT IPALCO HAS INFLATED BY HUNDREDS OF MILLIONS OF DOLLARS THE POTENTIAL SAVINGS A COMBINATION OF THE TWO COMPANIES WOULD GARNER IT NOTES THAT IPALCO'S ACQUISITION OFFER IS PREDICATED ON APPROVAL FROM THE INDIANA REGULATORS OF WHAT PSI CHARACTERIZES AS AN UNPRECEDENTED RATE PLAN UNDER THAT PLAN IPALCO IS SEEKING RATE RELIEF FOR AN ACQUISITION ADJUSTMENT THE 913 MILLION DIFFERENCE BETWEEN THE PURCHASE PRICE AND THE LOWER BOOK VALUE OF PSI IPALCO KNOWS BUT HAS FAILED TO DISCLOSE SAID PSI THAT ITS REGULATORY PLAN HAS VIRTUALLY NO CHANCE OF BEING APPROVED IPALCO HAS DONE NOTHING TO INITIATE THE REGULATORY PROCEEDINGS THAT THE ACQUISITION WILL REQUIRE PSI CHAIRMAN JIM ROGERS SAID IN A STATEMENT BECAUSE THE FLAWS IN THEIR PLAN WOULD BECOME CLEAR AN IPALCO SPOKESWOMAN SAID THERE IS PRECEDENT BOTH IN INDIANA AND IN OTHER STATES FOR THE ACQUISITION ADJUSTMENT THAT PSI ASSERTS IS A MAJOR STUMBLING BLOCK SHE ADDED IF WE'RE TALKING ABOUT MISLEADING FIGURES WE'RE TALKING ABOUT PSI NOT IPALCO THE PSI SUIT ASKS THE COURT TO ENJOIN IPALCO FROM CONTINUING WITH THE BID UNTIL IT CORRECTS THE ALLEGEDLY FALSE AND DECEPTIVE CLAIMS IPALCO'S OFFER EARLIER THIS YEAR HAS PUSHED PSI SHARES ABOVE THE LEVEL AT WHICH THEY HAD SETTLED IN ANTICIPATION OF THE CINCINNATI GAS MERGER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY PSI SLIPPED 375 CENTS TO CLOSE AT 2350 9305100084 930510 AILEEN APRIL SALES DECLINE NEW YORK AILEEN INC SAID APRIL COMPARABLESTORE SALES FELL NEARLY 23 FROM APRIL 1992 LEVELS WHICH IT ATTRIBUTED TO GENERAL ECONOMIC WEAKNESS AND WAVERING CONSUMER CONFIDENCE THE WOMEN'S APPAREL MAKER AND RETAILER SAID THAT FOR THE SECOND QUARTER ENDED MAY 1 SAMESTORE SALES WERE OFF NEARLY 19 TOTAL RETAIL SALES AND MANUFACTURING SALES WILL BE INCLUDED IN ITS QUARTERLY RESULTS WHICH IT WILL REPORT IN THE LAST WEEK OF MAY AILEEN SAID 9305100083 930510 AIRLINE READJUSTS LOSS FIVEFOLD LISBON PORTUGUESE NATIONAL AIRLINE TAP AIR PORTUGAL ACKNOWLEDGED THAT 1992 LOSSES WERE ABOUT 50 BILLION ESCUDOS 342 MILLION FIVE TIMES BIGGER THAN PREVIOUSLY ANNOUNCED TAP IN APRIL SAID THAT 1992 LOSSES TOTALED 10 BILLION ESCUDOS TAP ONE OF SEVERAL STATEOWNED COMPANIES UP FOR PRIVATIZATION UNDER PORTUGAL'S ECONOMIC REFORM PLAN BLAMED THE 1992 LOSSES ON DECLINING AIR TRAVEL A FARE WAR THE CLOSING OF DOMESTIC CARRIER ATLANTIS AIRLINES AND HIGH CAPITAL EXPENDITURES THE REPORT OF BALLOONING LOSSES FED SPECULATION THAT TAP WILL BE FORCED TO IMPLEMENT A SWEEPING RESTRUCTURING OR LOOK FOR FOREIGN INVESTORS 9305100082 930510 TECHNOLOGY EPA WILL HALT USE OF 4 PESTICIDES IN PROCESSED FOODS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY SEEKING TO COMPLY WITH A 1992 FEDERAL COURT DECISION SAID IT WILL STOP ALLOWING USE OF FOUR PESTICIDES IN FOODS THAT ARE PROCESSED EPA ADMINISTRATOR CAROL BROWNER SAID IN A PREPARED STATEMENT THAT THE PESTICIDES AFFECTED BY THE ACTION POSE ONLY A NEGLIGIBLE RISK TO PUBLIC HEALTH BUT THE COURT DECISION WHICH REQUIRED THE EPA TO BAN PESTICIDES FOUND TO INDUCE CANCER IN ANIMALS LEAVES US LITTLE CHOICE BUT TO REVOKE PREVIOUS EPA APPROVAL MS BROWNER SAID THE AGENCY ESTIMATES THAT THE FOOD AND PESTICIDE INDUSTRIES STAND TO LOSE 70 MILLION THIS YEAR AS A RESULT OF THE DECISION THE EPA'S ACTION ANNOUNCED JOINTLY WITH THE FOOD AND DRUG ADMINISTRATION AND THE DEPARTMENT OF AGRICULTURE IS EXPECTED TO INCREASE THE CLAMOR AMONG BOTH INDUSTRY AND ENVIRONMENTALISTS FOR A WORKABLE ALTERNATIVE TO THE LONGSTANDING DELANEY CLAUSE RISK STANDARD WHICH ESSENTIALLY REQUIRES THE FEDERAL GOVERNMENT TO BAN FROM PROCESSED FOODS ANY SUBSTANCE FOUND TO CAUSE CANCER IN ANIMALS THE DELANEY CLAUSE WAS THE FOCUS OF LAST YEAR'S COURT DECISION ALTHOUGH IT HAS BEEN WRITTEN INTO LAW FOR THREE DECADES THERE IS NOW BROAD AGREEMENT THAT THE DELANEY CLAUSE IS TOO RIGID A STANDARD FOR ASSESSING POTENTIAL HARM TO HUMAN HEALTH BUT THERE IS LITTLE CONSENSUS ABOUT HOW TO REPLACE IT AND THE CLINTON EPA IS ILLEQUIPPED TO INITIATE ANY PROPOSALS SINCE IT HAS YET TO NAME AN ASSISTANT ADMINISTRATOR FOR PREVENTION PESTICIDES AND TOXIC SUBSTANCES THE FOUR PESTICIDES THAT WILL BE BANNED FOR USE ON PROCESSED FOODS ARE CIBAGEIGY CORP'S CRYOMAZINE WHICH THE EPA HAD APPROVED FOR POTATOES AND TOMATOES IN FLORIDA RHONEPOULENC SA'S FOSETYLAL APPROVED FOR HOPS IN OREGON RHONEPOULENC'S IPRODIONE APPROVED FOR APPLES IN NORTH CAROLINA AND MILES INC'S TRIADIMEFON APPROVED FOR TOMATOES IN CALIFORNIA IN EVERY CASE THE EPA HAD ALLOWED THESE PESTICIDES IN PROCESSED FOODS UNDER AN EMERGENCY EXEMPTION FROM THE DELANEY CLAUSE THE EPA SAID IT WON'T GRANT SUCH EXEMPTIONS IN THE FUTURE THE AGENCY'S DECISION DOESN'T APPLY TO USE OF PESTICIDES ON UNPROCESSED FOODS WHICH AREN'T COVERED BY THE DELANEY CLAUSE 9305100081 930510 ROCKWELL COMPLETES ACQUISITION LOS ANGELES ROCKWELL INTERNATIONAL CORP SAID IT COMPLETED THE ACQUISITION OF AN AUTOMOTIVE PARTS PLANT IN CZECHOSLOVAKIA FROM AUTO PRODUCER SKODA MLADA BOLESLAV TERMS WEREN'T DISCLOSED THE FACILITY IN LIBEREC ABOUT 75 MILES NORTHEAST OF PRAGUE WILL BE OPERATED BY ROCKWELL BCSLIBEREC AS A UNIT OF ROCKWELL'S BODY AND CHASSIS UNIT IN FRANCE ROCKWELL SAID THE PLANT WITH 500 EMPLOYEES WILL PRODUCE SUBASSEMBLIES FOR CAR SEATS AND WINDOWS AND WILL BE MODERNIZED IT WILL INITIALLY CONTINUE TO PRODUCE PARTS FOR SKODA ITS FORMER OWNER OVER THE NEXT FIVE YEARS THE PLANT'S OUTPUT WILL BE DIRECTED TOWARDS WIDER MARKETS IN EUROPE AND ELSEWHERE ROCKWELL SAID 9305100079 930510 ENTERPRISE BOWLES WINS CONFIRMATION TO SMALL BUSINESS POSITION WASHINGTON ERSKINE BOWLES A NORTH CAROLINA INVESTMENT BANKER AND A FUND RAISER FOR THE CLINTON PRESIDENTIAL CAMPAIGN WAS CONFIRMED BY THE SENATE AS HEAD OF THE SMALL BUSINESS ADMINISTRATION MR BOWLES IS THE FOUNDER OF BOWLES HOLLOWELL CONNER & CO A CHARLOTTEBASED FIRM ESTABLISHED TO SERVE THE INVESTMENTBANKING NEEDS OF SMALL AND MEDIUMSIZE COMPANIES DURING CONFIRMATION HEARINGS BEFORE THE SENATE SMALL BUSINESS COMMITTEE LAST WEEK MR BOWLES SAID HE PLANS TO IMPROVE THE AGENCY'S MANAGEMENT AND OUTREACH TO BUSINESSES AND MAKE IT A LEANER AND MORE EFFECTIVE ORGANIZATION HE DISCUSSED MAJOR ISSSUES INCLUDING THE NEED FOR EXTRA FUNDS FOR THE AGENCY'S GUARANTEEDLOAN PROGRAM BUT SAID HE WOULD LOOK AT ALL THE PROPOSED SOLUTIONS BEFORE OFFERING HIS OWN MR BOWLES 47 YEARS OLD IS THE FIRST SBA ADMINISTRATOR IN RECENT YEARS WHO WASN'T A DEFEATED CANDIDATE FOR THE SENATE HE CHARACTERIZES HIMSELF AS SOMEONE WHO'S NOT A POLITICIAN BUT A BUSINESSMAN WHO BELIEVES IN SETTING GOALS HE WAS CONFIRMED BY A VOICE VOTE 9305100077 930510 DIVIDEND NEWS MISSION WEST PROPERTIES MISSION WEST PROPERTIES SAN DIEGO SAID IT SUSPENDED ITS QUARTERLY DIVIDEND ON COMMON STOCK TO CONSERVE CASH THE REAL ESTATE DEVELOPER AND OPERATOR OF OFFICE AND LIGHT MANUFACTURING PROPERTIES LAST PAID A QUARTERLY DIVIDEND OF FIVE CENTS A SHARE FEB 26 IN NOVEMBER THE PAYOUT WAS CUT TO FIVE CENTS FROM 10 CENTS IN AUGUST MISSION WEST PROPERTIES HAD A LOSS OF 824000 OR 56 CENTS A SHARE IN THE FISCAL YEAR ENDED NOV 30 1992 AND A LOSS OF 162000 OR 11 CENTS A SHARE IN FISCAL 1993'S FIRST QUARTER ENDED FEB 28 9305100076 930510 CAROLCO PICTURES WANTS AMENDED PLAN FOR RESTRUCTURING EXCHANGE OF DEBT BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES CAROLCO PICTURES INC FILED AN AMENDMENT TO ITS FINANCIAL RESTRUCTURING PLAN WITH THE SECURITIES AND EXCHANGE COMMISSION THREATENING TO FILE FOR A PREPACKAGED BANKRUPTCY LAW REORGANIZATION IF ENOUGH OF ITS DEBT ISN'T EXCHANGED CAROLCO THE TROUBLED INDEPENDENT PRODUCER BEHIND SUCH FILMS AS CHAPLIN AND BASIC INSTINCT ALSO DISCLOSED IN THE SEC FILING THAT MARIO F KASSAR ITS CHAIRMAN SIGNED A NEW EMPLOYMENT AGREEMENT EXTENDING THE TERM OF HIS EMPLOYMENT AT LEAST THROUGH DEC 31 1997 THE AGREEMENT IS CONDITIONED ON THE SUCCESSFUL COMPLETION OF THE RESTRUCTURING IN THE FILING THE COMPANY REPORTED FOR THE FIRST TIME THAT IT HAD A 1992 LOSS OF 88 MILLION OR 306 A SHARE COMPARED WITH A 1991 LOSS OF 2651 MILLION OR 944 A SHARE THE LATEST YEAR'S PERSHARE LOSS WAS BASED ON 14 MILLION MORE WEIGHTED AVERAGE SHARES OUTSTANDING REVENUE WAS 5653 MILLION IN 1992 DOWN 6 FROM 6011 MILLION THE COMPANY SAID THE DECREASE IN REVENUES WAS DUE PRIMARILY TO A DECREASE IN SALES AT LIVE ENTERTAINMENT INC THE HOME VIDEO CONCERN IN WHICH CAROLCO OWNS A 367 STAKE CAROLCO'S RESULTS HAVE BEEN CONSOLIDATED WITH THOSE OF LIVE ENTERTAINMENT CAROLCO'S FEATUREFILM REVENUE BUOYED BY BOXOFFICE RECEIPTS FROM MOVIES INCLUDING BASIC INSTINCT AND UNIVERSAL SOLDIER ROSE 15 TO 2693 MILLION FROM 2345 MILLION CAROLCO'S SEC FILING DISCLOSED THAT IT HAS REVISED CERTAIN TERMS OF ITS PREVIOUSLY ANNOUNCED EXCHANGE OFFERS FOR HOLDERS OF ITS OUTSTANDING 14 SENIOR NOTES AND 13 SENIOR SUBORDINATED NOTES CAROLCO SAID IT MIGHT FILE A PREPACKAGED BANKRUPTCY REORGANIZATION IF 85 OF EACH OF THE NOTES AREN'T EXCHANGED IN ADDITION CAROLCO INDICATED THAT THE VOTING POWER OF THREE STRATEGIC PARTNERS WOULD FALL TO 63 FROM THE 68 IT ANNOUNCED IN DECEMBER AS A RESULT OF CERTAIN OTHER SHIFTS THOSE PARTNERS ARE AN AFFILIATE OF ITALY'S RIZZOLI CORRIERE DELLA SERA GROUP LE STUDIO CANAL PLUS A UNIT OF FRANCE'S CANAL PLUS SA AND PIONEER LDCA INC A UNIT OF PIONEER ELECTRONIC CORP OF JAPAN THE VOTING POWER OF METROGOLDWYNMAYER INC ANOTHER STRATEGIC PARTNER WOULD GROW SLIGHTLY TO 18 FROM 16 MGM WHICH WOULD BEGIN DISTRIBUTING CAROLCO'S FILMS DOMESTICALLY IN 1994 IS OWNED BY FRENCH BANK CREDIT LYONNAIS SA CAROLCO CLARIFIED ITS PROPOSED NEW DISTRIBUTION ARRANGEMENT WITH MGM SAYING CAROLCO HAS RESERVED FOR ITSELF SIGNIFICANT TERRITORIES AND RIGHTS UNDER THE REVISED FILING CAROLCO SAID PIONEER LDCA LE STUDIO CANAL PLUS AND MGM OR THEIR AFFILIATES WOULD TOGETHER PURCHASE 825 MILLION OF A NEW CLASS OF PREFERRED STOCK THE EARLIER PROPOSAL HAD THOSE PARTNERS PLUS RCS OF ITALY PURCHASING A TOTAL OF 90 MILLION OF PREFERRED STOCK 9305100075 930510 INTERNATIONAL VIRGIN GROUP SETS A FORAY INTO PERSONAL COMPUTERS LONDON NO LONGER CONTENT WITH MERE HOTAIR BALLOONING AND RUNNING AN AIRLINE ENTREPRENEUR RICHARD BRANSON IS PLANNING ONE OF HIS RISKIEST VENTURES YET SELLING PERSONAL COMPUTERS AN OFFICIAL OF MR BRANSON'S VIRGIN GROUP LTD SAID THE COMPANY PLANS IN LATE SEPTEMBER TO START SELLING PCS OF ITS OWN DESIGN IN BRITAIN THE MACHINES WILL BE SOLD IN VIRGIN RECORD AND TAPE STORES SAID JOHN JENKINS UK SALES AND MARKETING MANAGER OF VIRGIN EUROMAGNETICS LTD A VIRGIN UNIT THE VIRGIN PC IS AN UNEXPECTED VENTURE FOR THE FLAMBOYANT MR BRANSON WHO BEGAN HIS FORTUNE BY STARTING A MAILORDER RECORD COMPANY AND WHOSE HOBBY AS A BALLOONIST HAS TAKEN HIM ACROSS THE ATLANTIC OCEAN AMONG OTHERS IN A GONDOLA HIS AIRLINE VIRGIN ATLANTIC AIRWAYS ALSO MAKES TRANSATLANTIC FLIGHTS VIRGIN'S FIRST PC WILL BE BASED ON INTEL CORP'S 486SX CHIP FOR ABOUT 1100 1730 THE AVERAGE PRICE OF A COMPARABLE PC IN BRITAIN THE MACHINE WILL COME WITH 4 MEGABYTES OF RANDOMACCESS MEMORY A 40MEGABYTE HARD DISK MICROSOFT CORP WINDOWS SOFTWARE AND A 12MONTH ONSITE MAINTENANCE CONTRACT THOUGH DESIGNED BY VIRGIN THE PC WILL BE ASSEMBLED IN BRITAIN BY ANOTHER COMPANY THAT MR JENKINS DECLINED TO IDENTIFY 9305100074 930510 LETTERS TO THE EDITOR FEAR VS FACTS IN BIOTECH DEBATE THE APPROVAL OF THE AGRICULTURE DEPARTMENT'S REVISED REGULATIONS ON GENETICALLY ENGINEERED PLANTS CLINTON TO SLOW PACE OF EASING BIOTECH RULES MARCH 31 SIGNALS A POTENTIALLY ROCKY ROAD AHEAD FOR AGRICULTURAL BIOTECHNOLOGY WITH THE NEW ADMINISTRATION IN A REVERSAL OF POLICIES PROPOSED BY THE BUSH ADMINISTRATION THAT WERE SUPPORTED BY THE SCIENTIFIC COMMUNITY THE DEPARTMENT HAS DECIDED TO SLOW THE PACE OF DEREGULATION OF AGRICULTURAL BIOTECHNOLOGY IT WILL RETAIN UNNECESSARILY STRICT FEDERAL CONTROLS OVER FIELD RESEARCH IS THIS SOUND PUBLIC POLICY OR A POLITICALLY EXPEDIENT RESPONSE TO PRESSURE GROUPS THE QUESTION IS IMPORTANT BECAUSE IT MAY SIGNAL A WILLINGNESS ON THE PART OF SOME IN THE NEW ADMINISTRATION TO SACRIFICE THE PRODUCTS OF PUBLICLY FUNDED RESEARCH WHEN EMOTIONAL CAMPAIGNS ARE WAGED THAT WOULD BE TRAGIC BOTH FOR SCIENCE AND THE NATION AT A TIME WHEN THE US'S COMPETITIVE EDGE IS SERIOUSLY CHALLENGED THE LAST THING OUR NATION NEEDS IS A GOVERNMENT THAT IS BLINDLY MISTRUSTFUL OF SCIENCE AND TECHNOLOGY WHAT ARE THE FACTS ABOUT THE DANGERS OF AGRICULTURAL RESEARCH IN BIOTECHNOLOGY SCIENCE PRIDES ITSELF ON EMPIRICAL EVIDENCE AND THE EVIDENCE IS VERY CLEAR TWENTY YEARS' EXPERIENCE WITH GENETIC ENGINEERING AND A DECADE OF GOVERNMENT OVERSIGHT OF MORE THAN 600 FIELD EXPERIMENTS WORLDWIDE HAVE DEMONSTRATED THAT THE NEW GENETIC METHODS ARE NOT ONLY SAFE BUT ACTUALLY ENHANCE OUR ABILITY TO EVALUATE RISKS COMPARED TO CRUDER MORE CONVENTIONAL BREEDING TECHNIQUES IS GOVERNMENT INTERVENTION INTO FIELD RESEARCH REALLY NEEDED ARE THERE REASONS TO BELIEVE THAT CONVENTIONAL RESEARCH PRACTICES WON'T CONTROL RISKS SHOULD THEY ARISE NO THE POTENTIAL RISKS INVOLVED WITH THE NEW GENETICALLY ENGINEERED PLANTS ARE THE SAME AS THOSE THAT BREEDERS HAVE CONTENDED WITH YEAR AFTER YEAR AS THEY ANNUALLY INTRODUCED THOUSANDS OF NEW CULTIVARS AND BREEDING LINES IN FIELD TESTS MOREOVER THE GOALS OF THE NEW GENETIC TECHNOLOGIES ARE FAMILIAR AGRICULTURAL GOALSENHANCED DISEASE AND INSECT RESISTANCE TO REDUCE THE USE OF AGRICHEMICALS TOLERANCE TO ENVIRONMENTAL STRESS LIKE DROUGHT OR SALINITY AND ENHANCED NUTRITION OR TASTE OF FOODS IS THERE EVIDENCE OF NEW AND UNFORESEEN DANGERS ASSOCIATED WITH THE NEW GENETICALLY ENGINEERED PLANTS IF GOOD SCIENCE REVEALS NONE WHY IS GOVERNMENT MAINTAINING RIGID AND BURDENSOME REGULATIONS FOR FAMILIAR AND COMMONPLACE CROPS THESE REGULATIONS PRESENT A SERIOUS DISINCENTIVE FOR RESEARCH WITH FEWER THAN 15 OF THE AGRICULTURE DEPARTMENT'S 350 PERMITS ISSUED TO ACADEMIC RESEARCHERS DEVELOPMENT OF PUBLICLY FUNDED RESEARCH DISCOVERIES HAS BEEN STALLED IF NOT DEFERRED ALTOGETHER LEGITIMATE OVERSIGHT AND DEBATE OF SCIENTIFIC ISSUES BY INFORMED CITIZENS IS AN ESSENTIAL FEATURE OF OUR DEMOCRACY BUT GOVERNMENT SHOULD REJECT APPEALS TO DEMAGOGUERY AND IGNORANCE THAT SEEK TO THROW UP ROADBLOCKS TO SCIENTIFIC PROGRESS THE NEW ADMINISTRATION SHOULD TAKE TIME TO CONSIDER THE ISSUES AND ASSESS WHAT THE NATION RISKS WHEN GOVERNMENT POLICIES PRECLUDE POTENTIAL OPPORTUNITIES PROVIDED BY NEW TECHNOLOGIES WORLD HUNGER AND AN ERODING ENVIRONMENT DEMAND OUR BEST SCIENCE AND OUR BEST TECHNOLOGIES 9305100073 930510 GPA'S EFFORT TO RAISE CASH MOVES FORWARD POSSIBLE ACCORD WOULD CALL FOR GE CAPITAL TO BUY PLANES AIRCRAFT LEASES BY BRIAN COLEMAN AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL GPA GROUP PLC IN RECENT DAYS HAS MADE SIGNIFICANT PROGRESS WITH GE CAPITAL CORP TOWARD RAISING MUCHNEEDED CASH A TRANSACTION THAT WOULD IMPROVE THE CHANCES OF STABILIZING THE AIRCRAFTLEASING COMPANY'S DIFFICULT FINANCIAL SITUATION UNDER TENTATIVE TERMS OF AN ACCORD BEING DISCUSSED BY THE COMPANIES IRELAND'S GPA WOULD SELL HUNDREDS OF MILLIONS OF DOLLARS IN PLANES OR AIRCRAFT LEASES TO THE STAMFORD CONN COMPANY ACCORDING TO PEOPLE CLOSE TO THE TALKS GE CAPITAL A GENERAL ELECTRIC CO UNIT ALSO WOULD INVEST AN UNDISCLOSED AMOUNT OF NEW EQUITY HELPING GPA MEET ITS GOAL OF RAISING 200 MILLION IN FRESH EQUITY THE POTENTIAL AGREEMENT CAME AFTER A HIGHLEVEL MEETING THURSDAY IN THE US BETWEEN GPA AND GE OFFICIALS STILL INDIVIDUALS FAMILIAR WITH THE TALKS CAUTIONED THAT AN ACCORD BETWEEN THE TWO COMPANIES ISN'T COMPLETED INDIVIDUALS WHO DESCRIBED THE GPAGEC MEETING AS POSITIVE WARNED THAT A GREAT DEAL OF UNCERTAINTY REMAINS ANY DEAL WILL DEPEND TO A GREAT EXTENT ON EXISTING SHAREHOLDERS ONE OFFICIAL SAID NOTING THAT GEC'S TERMS MAY PROVE TOO DEMANDING INDEED GPA'S BOARD IS BELIEVED TO HAVE TURNED DOWN ONE OFFER BY GE CAPITAL A PERSON CLOSE TO THE TALKS SAID GEC HAS MADE IT CLEAR THAT IT WON'T ASSUME GPA'S OBLIGATIONS OR DO ANYTHING THAT WOULD JEOPARDIZE ITS STELLAR BALANCE SHEET AND TRIPLEA DEBT RATING MEANWHILE GPA IS SCHEDULED TO MEET THURSDAY IN NEW YORK WITH BONDHOLDERS TO DISCUSS A MORATORIUM ON INTEREST PAYMENTS PEOPLE CLOSE TO THE COMPANY SAID IT ISN'T CLEAR WHETHER GPA HAS DECIDED TO SUSPEND PAYMENTS BUT GPA IS BEING ADVISED BY ITS INVESTMENT BANKERS TO EXCHANGE ITS DEBT SECURITIES FOR EQUITY IN THE COMPANY CREDITORS SAY A MORATORIUM WOULD PRECEDE SUCH AN ARRANGEMENT UNDER WHICH THE EQUITY WOULD BE OFFERED TO UNSECURED CREDITORS GPA HAS ABOUT 2 BILLION IN UNSECURED NOTES OUTSTANDING MUCH OF WHICH IS HELD BY US INSURANCE COMPANIES AND MUTUAL FUNDS THE ATTITUDE OF THE BANKS IS THAT BONDHOLDERS HAVE TO SHARE THE PAIN SAID ONE INDIVIDUAL CLOSE TO THE COMPANY STARTING NEXT MONDAY AND CONTINUING THROUGH JUNE THE COMPANY IS SCHEDULED TO BEGIN PAYING OUT 200 MILLION TO BONDHOLDERS A MOVE BANKS OPPOSE THE DEVELOPMENTS COME AT THE END OF GPA'S DESPERATE SEARCH FOR 200 MILLION NEARLY ONE YEAR AFTER AN ABORTED 1 BILLION STOCK OFFERING THAT TRIGGERED THE FINANCIAL CRISIS SOME OF GPA'S BIGGEST SHAREHOLDERS SUCH AS IRISH STATEOWNED AIRLINE AER LINGUS LACK THE MONEY FOR A FRESH INJECTION ANOTHER STOCKHOLDER AIR CANADA SAID FRIDAY IT WAS WRITING OFF ITS 80 MILLION CANADIAN DOLLAR US63 MILLION GPA STAKE AND WON'T PARTICIPATE IN THE NEW OFFERING ALONG WITH EQUITY FROM EXISTING SHAREHOLDERS SUCH AS MITSUBISHI TRUST & BANKING CORP AN INVESTMENT BY GEC WOULD BRING THE COMPANY CLOSE TO THE MINIMUM OF 200 MILLION IN FRESH EQUITY THAT IS REQUIRED BY BANK LENDERS PEOPLE CLOSE TO THE COMPANY SAID BANKS WOULD THEN PROBABLY SIGN OFF ON A PLAN TO DEFER 1 BILLION IN PRINCIPAL PAYMENTS AND LOOSEN FINANCIAL COVENANTS LENDERS HAVE MADE THEIR CONCESSIONS CONDITIONED ON NEW EQUITY GPA WON SOME BREATHING ROOM FRIDAY WHEN ITS BANKERS GAVE THE COMPANY YET ANOTHER EXTENSION OF THE WAIVERS ALLOWING IT TO REMAIN IN VIOLATION OF CERTAIN LENDING TERMS BUT THE BANKS ARE UNLIKELY TO LET THAT SITUATION CONTINUE PAST NEXT MONDAY WHEN THE PAYMENTS TO BONDHOLDERS ARE SET TO BEGIN THE HOLDERS ARE ALREADY PREPARING FOR GPA'S OVERTURES SOME OF THE BIGGEST BOND CREDITORS PARTICIPATED IN A MEETING SPONSORED BY INVESTMENT BANKERS LAZARD FRERES & CO THURSDAY TO ORGANIZE FOR A POSSIBLE DEBTEXCHANGE OFFER LAZARD APPEARS TO BE ANGLING TO REPRESENT THE UNSECURED CREDITORS LAZARD OFFICIALS TOLD BONDHOLDERS THAT THE COMPANY'S ADVISERS DONALDSON LUFKIN & JENRETTE INC WILL RECOMMEND A SWAP OF DEBT FOR EQUITY ONE PARTICIPANT IN THE MEETING SAID LAZARD OFFICIALS DIDN'T RETURN CALLS AND DLJ HASN'T CONFIRMED IT HAS BEEN RETAINED BY GPA IF THE COMPANY CAN WIPE OUT ITS 2 BILLION IN BONDS AND SHED A LARGE CHUNK OF AIRCRAFT OR LEASES TO RAISE CASH IT COULD VERY WELL SURVIVE ITS CURRENT CRISIS THAT WOULD MEAN CONVINCING BONDHOLDERS THEY ARE BETTER OFF NOT BEING PAID INTEREST AND HOPING THAT RECALCITRANT CREDITORS WON'T FORCE THE COMPANY INTO BANKRUPTCY THE SECURITIES ARE NOW BEING PURCHASED BY SPECULATORS AT ABOUT 20 CENTS ON THE DOLLAR THE FAILURE OF GPA COULD DAMAGE THE WORLDWIDE AIRCRAFT INDUSTRY AND THOSE LENDERS THAT ARE EXPOSED TO IT ESPECIALLY WITH IRELAND'S HARSH BANKRUPTCY RULES WHICH CAN QUICKY FORCE A LIQUIDATION THAT IS WHY THE COMPANY'S BANKERS AND OTHERS SAY IT IS IN THE INTEREST OF ALL PARTIES TO MAKE CONCESSIONS IF SOMETHING PRECIPITOUS HAPPENS EVERYONE LOSES SAID THOMAS GALLAGHER SENIOR VICE PRESIDENT AT CHASE MANHATTAN BANK AND HEAD OF THE BANK'S TRANSPORTATION GROUP A UNIT OF CHASE MANHATTAN CORP THE BANK HAS A MINIMAL EXPOSURE TO GPA GE AND GEC HAVE A BIG EXPOSURE TO THE AIRCRAFT INDUSTRY GEC OWNS POLARIS AIRCRAFT LEASING CORP WHICH MANAGES ABOUT 5 OF THE WORLD'S COMMERCIAL FLEET IN ADDITION GE IS ONE OF THE WORLD'S THREE MAJOR AIRCRAFT ENGINE MANUFACTURERS IT ONCE OWNED A 23 STAKE IN GPA BUT SOLD IT IN THE MID1980S FOR A PROFIT OF ABOUT 56 MILLION GE OFFICIALS WHO HAVE DECLINED COMMENT ON THEIR PREVIOUSLY REPORTED INVOLVEMENT COULDN'T BE REACHED FOR COMMENT 9305100072 930510 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BUSINESS SEEMS TO BE PICKING UP FOR SMALL AND MEDIUMSIZED JAPANESE COMPANIES THEIR FIRST SIGN OF IMPROVEMENT SINCE THE 1990 THIRD QUARTER A SURVEY FOUND OF 5735 BUSINESSES RESPONDING TO THE FIRSTQUARTER SURVEY BY JAPAN FINANCE CORP FOR SMALL BUSINESS SENTIMENT FOR AN UPTURN REGISTERED MINUS 335 BETTER THAN THE MINUS 373 IN THE PREVIOUS QUARTER THE INDEX MEASURES THE DIFFERENCE BETWEEN THE NUMBER OF COMPANIES WITH POSITIVE AND SLUGGISH OUTLOOKS BUT THE GROUP WARNED THAT IT WAS PREMATURE TO INFER ANY RECOVERY FOR SMALL BUSINESS AMID JAPAN'S STRUGGLE TO EMERGE FROM A LINGERING DOWNTURN DESPITE A PICKUP IN THE SMALLER BUSINESSES' SALES AND EARNINGS THEIR INVENTORIES AND EMPLOYMENT DIDN'T IMPROVE THE RECENT SURGE OF THE JAPANESE YEN AGAINST OTHER MAJOR CURRENCIES IN FOREIGN EXCHANGE MARKETS HAS LEFT SMALL BUSINESSES CAUTIOUS UNTIL THEY DETERMINE HOW THEIR OPERATIONS WILL BE AFFECTED IN POLAND WHERE CHECKS ARE RARELY USED TO PAY BILLS THE GOVERNMENT MAILS MANY RETIREMENT DISABILITY AND OTHER PAYMENTS IN CASH THIS HASN'T ESCAPED CROOKS' NOTICE LAST YEAR 82 MAIL CARRIERS WERE ATTACKED AND ROBBERIES COST THE POSTAL SERVICE 250000 IN THIS YEAR'S FIRST QUARTER TWO POSTMEN WERE KILLED BY BANDITS SO THE POSTAL AGENCY SCHEDULED ITS EMPLOYEES FOR SELFDEFENSE COURSES IT ALSO WILL EQUIP MAIL CARRIERS WITH TEAR GAS AND ALARMS STRIKES BY METALWORKERS IN EASTERN GERMANY SPREAD AFTER ANOTHER ROUND OF WAGE TALKS COLLAPSED THE IG METALL UNION SAID THE WALKOUTS WHICH BEGAN A WEEK AGO EXPANDED TO IDLE 38000 WORKERS AT 70 PLANTS AND ARE TO WIDEN THIS WEEK TO THE REST OF EASTERN GERMANY EMPLOYERS AGREED TO A 26 WAGE INCREASE DURING THE GERMAN UNIFICATION EUPHORIA TO BRING PAY CLOSER TO WESTERN GERMAN LEVELS BUT AS RECESSION SET IN THEY CUT THE RAISE TO 9 ONLY MATCHING INFLATION IN THE EASTERN REGION AND PROMPTING THE FIRST STRIKE THERE IN SIX DECADES WORKERS PREPARED FOR A LONG STRIKE TO PUSH FOR RAISES TOPPING 20 SINGAPORE MANUFACTURERS ARE EXPANDING THEIR OPERATIONS RAPIDLY THROUGHOUT ASIA OF THE PRODUCERS 34 HAVE SET UP FACTORIES IN MALAYSIA 16 IN INDONESIA 11 IN CHINA 99 IN THAILAND 5 IN THE PHILIPPINES 4 IN HONG KONG 37 IN INDIA AND 19 IN VIETNAM A SINGAPORE MANUFACTURERS ASSOCIATION SURVEY FOUND LOW LABOR COSTS WERE CITED AS THE MAJOR REASON FOR INVESTING IN ASIA MORE IMPORTANT THAN INFRASTRUCTURE AND TELECOMMUNICATIONS TAX INCENTIVES WEREN'T A LURE INFLATION IN CHINESE CITIES IN THE FIRST QUARTER HIT AN ANNUAL RATE OF 157 BUT THE GOVERNMENT SAID THE RATE FOR 1993 WOULD END UP AT THE TARGETED 6 NATIONWIDE RETAIL PRICES ROSE 86 IN THE FIRST QUARTER TO REDUCE INFLATION THE GOVERNMENT SAID IT WOULD TRY TO CONTROL EXCESSIVE INVESTMENT IN FIXED ASSETS BUT IT SAID CHINA WASN'T IN DANGER OF REPEATING THE HIGH INFLATION OF THE LATE 1980S WHEN THE RATE SOARED TO 40 DENMARK WILL PROPOSE THE EUROPEAN COMMUNITY DROP PLANS TO IMPOSE A SINGLE STANDARD FOR HIGHDEFINITION TELEVISION BROADCASTING A NEW FOURYEAR PLAN WOULD ALLOW OTHER TECHNOLOGIES SUCH AS DIGITAL BROADCASTING TO COMPETE FOR EXPECTED EC SUBSIDIES A STRATEGY CHANGE WOULD BE A BLOW TO FRANCE AND THE NETHERLANDS WHICH WANT AN HDTV STANDARD DEVELOPED BY COMPANIES IN THOSE TWO COUNTRIES THE EC HAS PROPOSED SUBSIDIES TOTALING 850 MILLION EUROPEAN CURRENCY UNITS 106 BILLION OVER FIVE YEARS TO FUND A SWITCH TO THE NEW STANDARD WITH HALF THE COSTS TO BE PAID BY EC GOVERNMENTS SATELLITE OPERATORS AND THE ELECTRONICS INDUSTRY IN THE FIRST THREE MONTHS AFTER IT BECAME INDEPENDENT JAN 1 THE CZECH REPUBLIC'S ECONOMY SLOWED AND WAGES GREW SHARPLY CAUSING INFLATION WORRIES AS TRADE WITH SLOVAKIA SLACKENED AFTER THE CZECHOSLOVAK FEDERATION WAS DISSOLVED CZECH GROSS DOMESTIC PRODUCT DROPPED BETWEEN 45 AND 5 FROM THE 1992 FIRST QUARTER EXPORTS TO SLOVAKIA SLUMPED 46 AND GLOBAL RECESSION CAUSED A DROP IN OTHER FOREIGN DEMAND FOR CZECH GOODS INDUSTRIAL PRODUCTION FELL 78 RETAIL SALES SHRANK 16 INFLATIONADJUSTED WAGES INCREASED MORE THAN 4 AND UNEMPLOYMENT STABILIZED THE CENTRAL BANK EXPRESSED ALARM THAT THIS PAY GROWTH AND A STAGNANT GDP COULD SPEED UP INFLATION CONSUMER PRICES IN THE FIRST QUARTER ROSE 106 THE BUDGET SURPLUS STOOD AT 104 BILLION KORUNA 3759 MILLION WITH RECEIPTS TOTALING 865 BILLION KORUNA AND EXPENSES 76 BILLION KORUNA BUT THE TRADE BALANCE WASN'T FAVORABLE ENDING THE QUARTER WITH A DEFICIT OF 17 BILLION KORUNA AS IMPORTS GREW 21 WHILE EXPORTS DROPPED 3 KYRGYZSTAN INTRODUCES TODAY ITS OWN CURRENCY THE SOM WHICH WILL REPLACE THE RUSSIAN RUBLE AT A RATE OF ONE SOM FOR 200 RUBLES AS THE RUBLE HAS RAPIDLY LOST VALUE OTHER FORMER SOVIET REPUBLICS ALSO HAVE CREATED THEIR OWN CURRENCIES OR COUPON SYSTEMS CHINA LAST YEAR BECAME THE WORLD'S BIGGEST EXPORTER OF BICYCLES SELLING ABOUT 10 MILLION ABROAD AND SURPASSING TAIWAN WHICH EXPORTED 84 MILLION YET MANY OF THE CHINESE BIKES WERE MADE IN SHENZHEN BY TAIWANOWNED FACTORIES 9305100071 930510 ARIZONA TRIBES TENTATIVELY SETTLE GAMBLING DISPUTE BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL IN A CLOSELY WATCHED DISPUTE OVER THE SPREAD OF INDIAN GAMBLING THE STATE OF ARIZONA AND TWO INDIAN TRIBES HAVE TENTATIVELY AGREED TO LIMIT THE NUMBER OF SLOT MACHINES ON RESERVATION CASINOS AND FORGO TABLE GAMES IN EXCHANGE FOR THE STATE'S REPEAL OF A CASINO BAN THE NEGOTIATIONS AIDED BY INTERIOR SECRETARY BRUCE BABBITT END A YEARLONG FIGHT BETWEEN THE TRIBES AND GOV FIFE SYMINGTON THE PLAN WOULD ALLOCATE SLOT MACHINES AND OTHER GAMBLING DEVICES BASED ON TRIBAL POPULATION UP TO A MAXIMUM OF 1300 MACHINES A TRIBE IT ALSO CALLS FOR THE DISMISSAL OF PENDING LAWSUITS BETWEEN THE PARTIES THE AGREEMENT WITH THE PASCUA YAQUI AND WHITE MOUNTAIN APACHE TRIBES WOULD ALLOW 24HOUR CASINO OPERATION IT ALSO WOULD ENTITLE THE TRIBES TO OPERATE AS MANY AS 12 TABLE GAMES PER CASINO IF THE STATE AUTHORIZES OFFRESERVATION SLOT OR VIDEO MACHINES ARIZONA RACETRACKS HAVE EXPRESSED INTEREST IN SLOT MACHINES IN AN EFFORT TO BOOST THEIR REVENUE DESPITE THE MONTHS OF ACRIMONY THE TRIBES PRAISED GOV SYMINGTON AND SECRETARY BABBITT FOR THEIR EFFORTS THIS IS A STRONG STATEMENT THAT INDIAN PEOPLE KNOW HOW TO COMPROMISE ON ISSUES WHILE NOT COMPROMISING THEIR PRINCIPLES ALBERT V GARCIA PASCUA YAQUI CHAIRMAN SAID THE PLAN WHICH MUST CLEAR SOME MINOR TECHNICAL HURDLES COULD SERVE AS A MODEL FOR OTHER STATES GRAPPLING WITH THE ISSUE OF INDIAN CASINOS UNDER THE 1988 INDIAN GAMING REGULATORY ACT FEDERALLY RECOGNIZED TRIBES HAVE THE RIGHT TO OFFER ANY GAMES LEGAL IN THEIR STATE TRIBES MUST SIGN STATE AGREEMENTS CALLED COMPACTS BUT STATE GOVERNMENTS HAVE LITTLE JURISDICTION OVER TRIBAL CASINOS GOV SYMINGTON AND FOUR OF ARIZONA'S 21 TRIBES HAD SIGNED COMPACTS ALLOWING THEM TO OPERATE AS MANY AS 250 SLOT MACHINES BUT LAST YEAR A FEDERAL MEDIATOR SIDED WITH THE PASCUA YAQUIS WHITE MOUNTAIN APACHES AND TOHONO O'ODHAM NATION IN THEIR BID FOR MORE MACHINES RULING THAT THEY SHOULD BE ALLOWED TO OPERATE AS MANY AS 2600 EACH THAT COULD HAVE PUT TRIBAL CASINOS IN A LEAGUE WITH SOME OF THE BIGGEST LAS VEGAS CASINOS AND PROMPTED THE GOVERNOR TO HELP PASS A LAW PROSCRIBING CASINOSTYLE GAMBLING UNDER THE COMPROMISE THE SMALLEST TRIBES WITH 4000 OR FEWER MEMBERS WOULD BE ALLOWED A MAXIMUM OF 400 DEVICES WHILE THE LARGEST TRIBES WITH 16000 OR MORE MEMBERS WOULD BE ALLOWED AS MANY AS 1300 DEVICES EACH TRIBE WOULD BE ALLOWED TWO TO FOUR CASINOS DEPENDING ON POPULATION SIZE AND EACH CASINO COULD HAVE A MAXIMUM OF 500 GAMBLING DEVICES PER SITE EACH RESERVATION ALSO WOULD BE ALLOWED TWO LIVE KENO GAMES BOTH PASCUA YAQUIS AND THE WHITE MOUNTAIN APACHES WOULD BE ALLOWED UP TO 800 DEVICES THE TOHONO O'ODHAM TRIBE WHICH HAS NOT YET JOINED THE AGREEMENT WOULD BE ELIGIBLE FOR 1300 THE PLAN STIPULATES THAT THE CASINO BAN BE REPEALED BY JUNE 1 AND THAT THE PASCUA YAQUI AND WHITE MOUNTAIN APACHE SIGN NEW COMPACTS BY THAT DATE SPOKESMEN FOR THE TOHONO O'ODHAM AND GOV SYMINGTON SAID THEY ARE ENCOURAGED BY THE COMPROMISE AND OTHER TRIBES ARE EXPECTED TO SIGN NEW COMPACTS BASED ON THE PLAN THE COMPROMISE ALSO HELPS SECRETARY BABBITT A FORMER ARIZONA GOVERNOR DODGE A POLITICAL BULLET AS THE DISPUTE WOULD HAVE FALLEN UNDER HIS PURVIEW IF THE STATE AND THE TRIBES HAD REACHED AN IMPASSE 9305100070 930510 TECHNOLOGY LOTUS SHARES SOAR ON HOPES FOR NEW 123 BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL LOTUS DEVELOPMENT CORP STANDS TO RECAPTURE GROUND IN THE FASTGROWING WINDOWS SOFTWARE SEGMENT WITH A REDESIGNED VERSION OF ITS FLAGSHIP 123 SPREADSHEET PACKAGE DUE TOMORROW ANALYSTS SAID LOTUS SHARES SOARED 25 LAST WEEK ON HEAVY VOLUME IN NATIONAL OVERTHECOUNTER TRADING ENDING AT 32 FRIDAY UP 650 FOR THE WEEK AS THE FIRST REVIEWS OF THE NEW PRODUCT APPEARED AND ANALYSTS FOCUSED ON PROSPECTS FOR THE SECOND HALF THIS COULD GET THEM BACK IN THE BALLGAME SAID MARY MEEKER AN ANALYST WITH MORGAN STANLEY WHO ADDED IT'S A REAL OPPORTUNITY TO WIN BACK SHARE WHILE INVESTORS AND LOTUS EXECUTIVES HAVE FOCUSED RECENTLY ON THE PROMISE OF NETWORK SOFTWARE SUCH AS LOTUS NOTES AND CCMAIL WHICH EMERGED LAST YEAR AS STRONG GROWTH BUSINESSES LOTUS MUST STILL RELY ON THE 123 FRANCHISE FOR MOST SALES AND PROFIT SO A STRONG WINDOWS PRODUCT IS SEEN AS CRITICAL TO THE COMPANY'S FUTURE WINDOWS FROM MICROSOFT CORP REDMOND WASH IS A GRAPHICSDRIVEN OPERATING PROGRAM THAT ALLOWS USE OF A MOUSE POINTING DEVICE MICROSOFT'S EXCEL SPREADSHEET WHICH WAS THE FIRST BIG SPREADSHEET TO BE TAILORED TO WINDOWS IS NOW THE STRONGEST IN THAT CATEGORY LOTUS HAD LONG DOMINATED THE 1 BILLION SPREADSHEET MARKET AND STILL HAS AN OVERWHELMING SHARE OF THE DECLINING DOS CATEGORY IN WINDOWS HOWEVER IT BECAME STALLED AT JUST 25 TO 30 OF THE NEW MARKET AFTER ITS FIRST EFFORT WAS PANNED BY MANY EARLY REVIEWERS LOTUS'S LATEST 123 CALLED RELEASE 4 FOR WINDOWS WAS HAILED AS A RADICAL CHANGE AND DRAMATICALLY IMPROVED IN ITS FIRST REVIEW PUBLISHED LAST WEEK IN PC WEEK A COMPUTER INDUSTRY WEEKLY RICK SHERLUND AN ANALYST AT GOLDMAN SACHS SAID THAT BY THE END OF THE CURRENT QUARTER WINDOWS SPREADSHEET REVENUE WILL EXCEED HALF OF TOTAL SPREADSHEET REVENUE FOR THE FIRST TIME WHILE DOS REVENUE WILL CONTINUE TO DECLINE RAPIDLY HE SAID IT'LL BE LESS OF A DAMPER NOW AS WINDOWS SALES GROW THE LINES ARE CROSSING MR SHERLUND ALSO SAID HE EXPECTS UPGRADERELATED REVENUE WILL BOOST EARNINGS MOMENTUM FOR LOTUS IN THE SECOND HALF AND THAT THE STAGE IS SET FOR REVENUES TO START GROWING AGAIN STILL HE WARNED THE NEW 123 WILL FACE STIFF COMPETITION LATER THIS YEAR AS BOTH MICROSOFT AND BORLAND INTERNATIONAL INC BRING OUT THEIR OWN NEW WINDOWS SPREADSHEETS BUT LOTUS HAS THE MOST TO GAIN BECAUSE ITS CURRENT RELEASE IS RATED A DISTANT THIRD HE SAID THE NEW 123 WILL LIST FOR 495 WITH A 129 UPGRADE PRICE FOR CURRENT SPREADSHEET OWNERS BUT ITS COMMON STREET PRICE WILL BE SUBSTANTIALLY LOWER AMONG ITS KEY FEATURES ANALYSTS AND REVIEWERS SAID IS A VERSION MANAGER THAT LETS PEOPLE ACROSS A NETWORK WORK ON THE SAME SPREADSHEET AT THE SAME TIME USERS WHO COLLABORATE TO DEVELOP WORKSHEET DATA ESPECIALLY THOSE USING LOTUS NOTES WILL FIND RELEASE 4 INDISPENSABLE PC WEEK SAID 9305100069 930510 A TAXREFORM LAUNDRY LIST FOR CLINTON BY ALAN REYNOLDS PRESIDENT CLINTON WILL ULTIMATELY BE JUDGED BY HOW WELL THE ECONOMY PERFORMS OVER FOUR YEARS NOT BY HOW MANY ILLCONSIDERED PROGRAMS HE CRAMMED THROUGH IN HIS FIRST 100 DAYS ONE KEY TO THE ECONOMY'S PERFORMANCE WILL BE MR CLINTON'S TAX PROPOSALS THESE MUST BE CAREFULLY EVALUATED BY THEIR REAL ECONOMIC EFFECTS NOT SIMPLY ON THE BASIS OF REALISTIC ESTIMATES NEW OR HIGHER TAXES THAT SLOW THE ECONOMY WILL ALSO SLOW THE GROWTH OF REAL INCOMES AND SALES AND THUS SLOW THE GROWTH OF REAL TAX RECEIPTS INSTEAD OF RUSHING INTO POLICY CHANGES THAT ARE UNQUESTIONABLY HARMFUL TO ECONOMIC GROWTH SUCH AS HIGHER TAX RATES ON INCOMES PROFITS AND ENERGY MR CLINTON WOULD DO WELL TO TAKE UP THREE UNFINISHED ITEMS ON THE TAXREFORM AGENDA THAT WOULD IMPROVE ECONOMIC GROWTH AND DO SO WITHOUT THE SLIGHTEST RISK OF REDUCING REVENUE FIRST INDEX THE BASIS OF CAPITALGAINS TAXES AND CAP THE MAXIMUM RATE AT 15 TO 20 ON ASSETS HELD MORE THAN SIX TO 12 MONTHS THERE IS NO EXCUSE FOR TRYING TO TAX ILLUSORY INFLATED CAPITAL GAINS AS THOUGH THEY REPRESENTED REAL INCOME AND IT DOESN'T WORK ANYWAY PEOPLE WITH LONGTERM GAINS THAT WOULD BE SUBJECT TO SUCH CAPRICIOUS TAXATION SIMPLY DO NOT SELL THEIR AFFECTED ASSETS CAPITAL GAINS SHOULD BE ADJUSTED FOR PAST AS WELL AS FUTURE INFLATION WHICH WOULD CREATE A LARGE REVENUE WINDFALL AS ASSETS PURCHASED IN THE INFLATIONARY 1970S WERE FINALLY SOLD THE REASON FOR THE LOWER TAX RATE IS PARTLY PRAGMATIC WE HAVE LEARNED THE HARD WAY THAT THE INCREASED TAX RATE SINCE 1987 HAS COST BOTH FEDERAL AND STATE GOVERNMENTS MANY BILLIONS IN LOST REVENUE EVER SINCE THE HIGHEST INCOME TAX RATE WAS RAISED TO 31 OR MORE FROM 28 AND THE CAPITALGAINS TAX INCREASED AT ALL INCOME LEVELS THE CONGRESSIONAL BUDGET OFFICE HAS HAD TO SCALE BACK ITS ESTIMATES OF FUTURE REVENUE BY NEARLY HALF A TRILLION DOLLARS OVER THE NEXT FOUR YEARS THE INFAMOUS TAX INCREASE OF 1990 NOT ONLY VANISHED BUT WAS REPLACED BY HUGE ESTIMATED REVENUE LOSSES THE ESTIMATED CUTBACK FROM INDIVIDUAL TAXES AMOUNTS TO AS MUCH AS 1 OF GROSS DOMESTIC PRODUCT MORE THAN 70 BILLION IN 1995 ALONE REVISIONS TO THE FORECAST OF CAPITALGAINS REALIZATIONS SAYS THE CBO ARE ACCOUNTING FOR ABOUT HALF OF THE REDUCTION IN THAT TAX SOURCE THUS THE INCREASED CAPITALGAINS TAX COULD BE LOSING AS MUCH AS 35 BILLION BY 1995 FAR MORE THAN THE PHONY ESTIMATE OF A 20 BILLION GAIN FROM THE ADMINISTRATION'S PLANS TO SOAK THE RICH WHAT ABOUT THE ADMINISTRATION'S IDEA OF CONFINING CAPITALGAINS TAX RELIEF ONLY TO ASSETS HELD FOR FIVE YEARS ALTHOUGH THE BUSH ADMINISTRATION ACCEPTED A MILD VERSION OF THIS IDEA THERE WAS NEVER ANY ECONOMIC LOGIC BEHIND BRIBING INVESTORS TO DEFER CAPITAL GAINS FOR MANY YEARS A SYSTEM THAT WAS ALREADY TRIED AND FOUND WANTING DURING THE DEPRESSION THE TAX SYSTEM SHOULD NOT DISCOURAGE INVESTORS FROM SELLING ASSETS AND REINVESTING IN OTHERS AT WILL THE CLINTON ADMINISTRATION'S PROPOSED FIVEYEAR HOLDING PERIOD FOR A LOWER CAPITALGAINS TAX ON AN EXTREMELY LIMITED RANGE OF INVESTMENTS MISALLOCATES CAPITAL TOWARD TAXFAVORED ASSETS DISCOURAGES EFFICIENT CAPITAL MOBILITY AND REDUCES REVENUES BY THWARTING ASSET SALES NEARLY ALL TAXPAYERS WITH CAPITAL GAINS ARE CURRENTLY SUBJECT TO THE 28 RATE ANY SIGNIFICANT ONETIME GAIN PUSHES EVEN TAXPAYERS IN THE 15 BRACKET INTO THE 28 BRACKET THUS REPLACING THE CURRENT 28 CAP WITH THE LOWER 15 RATE WOULD BE SIMPLER THAN THE OLD METHOD OF EXCLUDING A PORTION OF GAINS THE SECOND ESSENTIAL TAX REFORM LIKEWISE FINISHES THE JOB OF INDEXING THE TAX CODE AGAINST INFLATION BEGUN IN 1985 IT INVOLVES SWITCHING TO A SYSTEM OF DEPRECIATION THAT PROPERLY ALLOWS FOR FULL RECOVERY OF THE COST OF PLANT AND EQUIPMENT REP NICK SMITH R MICH HAS INTRODUCED A BILL THAT WOULD PROTECT DEPRECIATION FROM EROSION BY INFLATION AND PROVIDE THE EQUIVALENT OF EXPENSING SUCH A SYSTEM IS NEUTRAL NEITHER SUBSIDIZING CAPITAL INVESTMENT NOR PENALIZING IT UNLIKE THE PROPOSED INVESTMENT TAX CREDIT IT DOES NOT DISTORT DECISIONS ABOUT WHEN TO INVEST WHAT SIZE OF BUSINESS SHOULD DO THE INVESTING OR WHAT TYPE OF INVESTMENT SHOULD BE MADE AND UNLIKE THE INVESTMENT TAX CREDIT IT DOES NOT REDUCE REVENUE INDEED BY TAKING THE INFLATION RISK OUT OF BUSINESS INVESTMENT NEUTRAL COST RECOVERY WOULD EXPAND THE ECONOMY AND THEREFORE THE BASE OF ALL TAXES FEDERAL STATE AND LOCAL THE THIRD ELEMENT OF A CONSTRUCTIVE REVENUERAISING TAX REFORM IS TO ABOLISH FEDERAL ESTATE AND GIFT TAXES IN TAX POLICY AND THE ECONOMY EDITED BY CURRENT TREASURY UNDERSECRETARY LARRY SUMMERS STANFORD'S DOUGLAS BERNHEIM ESTIMATED THAT THE ESTATE TAX REDUCED REVENUES BY SOME 3 BILLION A YEAR DUE TO ESTATE PLANNING TO AVOID ESTATE TAXES WE SIMPLY GIVE ASSETS TO CHILDREN WHO ARE TYPICALLY IN LOWER TAX BRACKETS SO THE DIVIDENDS AND INTEREST INCOME FROM THOSE ASSETS IS TAXED AT LOWER RATES FOR MANY YEARS BEFORE WE DIE IN ANY CASE INHERITANCE TAXES ARE INHERENTLY UNFAIR SINCE THE ASSETS THAT PEOPLE ACCUMULATE FOR THEIR FAMILIES ARE ACQUIRED WITH AFTERTAX INCOME ENDING THE INHERITANCE TAX WHILE AT THE SAME TIME INDEXING CAPITAL GAINS COULD MAKE IT FEASIBLE TO IMPLEMENT AN OLD DREAM OF LIBERAL TAX REFORMERS TAXING UNREALIZED CAPITAL GAINS AT DEATH HEIRS WOULD THEN INHERIT HOMES FARMS STOCK AND OTHER ASSETS AT THEIR PURCHASE PRICE THUS OWING CAPITALGAINS TAX IF SUCH ASSETS ARE SOLD REPLACING THE INHERITANCE TAX WITH A TAX ON INDEXED GAINS AT DEATH WOULD YIELD FAR MORE REVENUE OVER TIME THAN THE EXISTING SYSTEM WHICH LOSES MONEY BUT TAXING CAPITAL GAINS AT DEATH WOULD BE QUITE IMPOSSIBLE WITHOUT REPEAL OF THE MONEYLOSING ESTATE TAX BECAUSE COMBINING BOTH TAXES COULD PROPRIATE FAMILY BUSINESSES AND FARMS MAKING CAPITAL GAINS TAXABLE TO HEIRS WOULD LIKEWISE BE BRUTALLY UNFAIR WITHOUT ADJUSTING FOR PAST INFLATION SINCE MANY INHERITED ASSETS HAVE BEEN IN FAMILIES FOR DECADES THESE THREE SIMPLE CONSTRUCTIVE REFORMS PUT THE LONGRUN HEALTH OF THE ECONOMY FIRST AND DO SO IN WAYS THAT ARE QUITE LIKELY TO INCREASE REVENUE OVER TIME THEY FINISH THE JOB BEGUN IN 1985 OF INSULATING TAXPAYERS AGAINST ARBITRARY CONFISCATION RESULTING FROM INFLATION THUS REDUCING THE FEAR SO EVIDENT IN RECENT SPECULATION IN THE PRECIOUSMETALS AND FOREIGNEXCHANGE MARKETS THAT THE US GOVERNMENT WILL ONCE AGAIN ATTEMPT TO FIX ITS BUDGET PROBLEMS THROUGH INFLATION MR REYNOLDS DIRECTS ECONOMIC RESEARCH AT THE HUDSON INSTITUTE IN INDIANAPOLIS 9305100068 930510 LETTERS TO THE EDITOR PSST HEY KIDDIE FILTHY CIGARETTES THE TOBACCO MARKETERS HAVE LEARNED SOMETHING FROM THEIR BRETHREN IN THE ILLICIT DRUG MARKETS WHEN DRUG DEALERS ARE TRYING TO HOOK A NEW GROUP OF ADDICTS THEY FLOOD AN AREA ESPECIALLY NEAR HIGH SCHOOLS WITH CHEAP COCAINE OR HEROIN CHEAP CIGARETTES DO THE SAME THING YOUR APRIL 1 ARTICLE ON HOW CHEAP CIGARETTES KEEP PEOPLE FROM BREAKING THEIR ADDICTION MAKES THE CASE FOR HIGHER CIGARETTE TAXES THERE IS HIGH ELASTICITY IN DEMAND IF WE SUBSTANTIALLY INCREASE CIGARETTE TAXES MORE PEOPLE WILL QUIT OR NEVER START SMOKING WHEN FEWER PEOPLE SMOKE THE NATION'S PRODUCTIVITY WILL INCREASE AND ITS MEDICAL CARE COSTS WILL DECREASE WE CAN USE SOME OF THE MONEY FROM INCREASED CIGARETTE TAXES TO PLAN AND IMPLEMENT AN ECONOMIC CONVERSION PROGRAM FOR THE FARMERS AND BUSINESSES THAT NOW DEPEND ON TOBACCO SURELY WE CAN BEAT THEIR CANCER SWORDS INTO BENEFICIAL PLOWSHARES JOIN TOGETHER IS A NATIONAL RESOURCE FOR COMMUNITIES FIGHTING SUBSTANCE ABUSE 9305100067 930510 BUSINESS BRIEFS JOY TECHNOLOGIES INC WILL CLOSE ITS CANADIAN UNIT'S PLANT IN KITCHENER ONTARIO BECAUSE OF POOR MARKET CONDITIONS FOR AIR POLLUTION CONTROL SYSTEMS STANDARD FEDERAL BANK INTENDS TO ACQUIRE INTERFIRST BANKCORP INC IN A DEAL VALUED AT 315 MILLION GALVESTONHOUSTON CO AGREED TO PURCHASE TOTAL ENGINEERING SERVICES TEAM INC A GRETNA LA UNIT OF TOTAL ENERGY SERVICES CO FOR 155 MILLION THE DEAL SUBJECT TO SEVERAL CONDITIONS IS EXPECTED TO BE COMPLETED BY THE END OF JUNE POLAROID CORP SOLD ITS 50 INTEREST IN A JOINT VENTURE PB DIAGNOSTIC SYSTEMS INC OF WESTWOOD MASS TO ITS PARTNER BEHRINGWERKE AG GERMANY TERMS WEREN'T DISCLOSED ANADARKO PETROLEUM CORP AGREED TO PURCHASE CERTAIN SOUTHWEST KANSAS OIL AND GAS PROPERTIES FOR 20 MILLION FROM AN UNDISCLOSED COMPANY THE SALE IS EXPECTED TO BE COMPLETED BY JUNE 15 MARGARETTEN FINANCIAL CORP A RESIDENTIAL MORTGAGE BANKER SAID APRIL LOAN PRODUCTION MORE THAN DOUBLED FROM A YEAR AGO TO 12 BILLION THE APRIL 1992 TOTAL WAS 500 MILLION PENRIL DATACOMM NETWORKS INC GAITHERSBURG MD ACQUIRED DATABILITY INC OF CARLSTADT NJ ANOTHER PROVIDER OF COMPUTER NETWORKING PRODUCTS FOR ABOUT ONE MILLION PENRIL SHARES AND AN ASSUMPTION OF ABOUT FIVE MILLION OF DEBT 9305100066 930510 LEISURE & ARTS TELEVISION A TRIP TO CYBERSPACE BY ROBERT GOLDBERG WILD PALMS MAY BE THE COOLEST SHOW YOU WILL EVER SEE YOU ARE PROBABLY NOT COOL ENOUGH TO WATCH IT IN FACT IN AN IDEAL WORLD THIS PROGRAM WOULD COME EQUIPPED WITH ITS OWN BOUNCERS AND VELVET ROPES JUST TO KEEP THE RIFFRAFF OUT BALLYHOOED AS THE NEXT TWIN PEAKS OLIVER STONE'S WILD PALMS IS MORE OF A NIGHTCLUB OR A THEME PARK OR A ZEITGEIST THAN A MINISERIES A SILICONCHIC MINDTWISTING TECHNOMYSTICAL HOTWIRED ZENINSPIRED INTERFACE OF A PROGRAM ALTHOUGH IT AIRS OVER FOUR CONSECUTIVE NIGHTS STARTING SUNDAY 911 PM EDT ON MAY 16 AND 17 1011 PM ON MAY 18 AND 19 THE FOLKS AT ABC DON'T TERM IT A MINISERIES THEY CALL IT AN EVENT SET IN A LOS ANGELES OF THE NEAR FUTURE 14 YEARS FROM NOW IN 2007 WILD PALMS TELLS THE STORY OF HARRY WYCKOFF JAMES BELUSHI A MIDLEVEL PATENT LAWYER WITH A WIFE DANA DELANY TWO KIDS AND A WHOLE BUNCH OF STRANGE DREAMS VISITED BY VISIONS OF RHINOS AND PALM TREES THEN BY HIS OLD FLAME FEMME FATALE PAIGE KATZ KIM CATTRALL HARRY FINDS HIMSELF SWEPT INTO A JOB AS HEAD OF BUSINESS AFFAIRS AT CHANNEL THREE A TV NETWORK HEADED BY THE CHARISMATIC SEN ANTON KREUTZER THE WONDERFUL ROBERT LOGGIA A MAN LABELED TOMORROW'S REALITICIAN THE NETWORK IS PREPARING TO UNVEIL A TECHNOLOGY THAT WILL REVOLUTIONIZE TELEVISION BY TRANSFORMING TV PIXELS INTO SYNTHETIC HOLOGRAMS THE PROGRAMS WILL PLAY OUT IN 3D RIGHT IN THE VIEWERS' OWN LIVING ROOMS BUT AS HARRY'S CAREER STARTS TO TAKE OFF AS HE CHARGES TOWARD HIS GLEAMING FUTURE HE KEEPS NOTICING A DARKER UNDERCURRENT GRIM MEN IN SUITS AND MIRRORED SUNGLASSES IN THE STREETS BEATING PEDESTRIANS FOR NO APPARENT REASON STRANGE PALMTREE TATTOOS THAT KEEP TURNING UP STORIES OF WEIRD CULTS SECRET SOCIETIES AND CHILD KIDNAPPINGS AND AS THE DRAMA PLAYS OUT HARRY AND HIS FAMILY WILL FIND THEMSELVES SUCKED INTO A NIGHTMARE TRAPPED BETWEEN DUELING POLITICAL FACTIONS KNOWN AS THE FATHERS AND THE FRIENDS WHO ARE FIGHTING FOR CONTROL OF THE STREETS AND HARRY'S SOUL CREATED AND WRITTEN BY BRUCE WAGNER BASED ON HIS COMIC STRIP OF THE SAME NAME WILD PALMS IS CERTAINLY ONE OF THE MOST INVENTIVE PROGRAMS TO AIR IN THE PAST FEW CENTURIES EXECUTIVE PRODUCER STONE JFK PLATOON HAS IMPORTED HIS TALENT WHOLESALE FROM THE MOVIES STYLISH FILMMAKERS LIKE PETER HEWITT KEITH GORDON KATHRYN BIGELOW AND PHIL JOANOU AND COMPOSER RYUICHI SAKAMOTO TOGETHER THEY HAVE CREATED A SERIES WITH A DISTINCTIVE HALLUCINATORY LOOK AND A DISTINCTIVE SOUND RETRO1960S HITS FROM THE SUPREMES AND THE STONES THEIRS IS A WORLD WHERE JIMI HENDRIX'S PURPLE HAZE IS A LOUNGE TUNE WHERE LA AND KYOTO ARE NEIGHBORS WHERE THE CHARACTERS QUOTE SUN TZU AND YEATS BACK TO BACK WHERE THE DRUGS ARE EVEN STRONGER AND TECHNOSHAMANISM IS KING THE IMAGINATIVE CENTERPIECE OF THIS WORLD IS VIRTUAL REALITY THE CUTTINGEDGE CONCEPT OF CYBERSPACE WHERE THE VIEWER DOESN'T JUST WATCH THE ACTION ON A SCREEN HE CAN STEP INSIDE IT WALKING TALKING ACTING IN A COMPUTER AND/OR VIDEOGENERATED SCENE RIGHT NOW IT'S JUST A HIP IDEA IN ITS INFANCY BUT CLEARLY THIS INTERACTIVE ARTIFICIAL REALITY IS THE ART FORM OF TOMORROW AND WILD PALMS IS THE FIRST TV SHOW TO TAP INTO THIS CURRENT NOW HIGHTECH TELEPRESENCE AND SYNTHIOTICS MAY SEEM A LONG WAY FROM SMALLTOWN BACKWOODS WASHINGTON STATE BUT TWIN PEAKS VIEWERS WILL RECOGNIZE THE BROODING AURA OF MENACE AND INTRIGUE HERE FROM PEAKS TO PALMS THE DEBT IS STYLISTIC HAUNTING MUSIC THAT LURKS AND LINGERS OFFCENTER VISUALS OMINOUS RESONANCES A PHRASE INEXPLICABLY REPEATED BY DIFFERENT CHARACTERS AT ODD MOMENTS EVERYTHING MUST GO IN BOTH SHOWS IT'S THE MYSTERY THAT PULLS YOU IN THE SHEER INSCRUTABILITY BUT AS WILD PALMS UNWINDS AS HARRY IS SEDUCED THEN DRAWN INTO THE DEADLY CROSSFIRE AS HE HELPS THE SENATOR IN HIS QUEST TO FIND THE TECHNOGRAIL THE MISSING GO CHIP AS THE SHOW GETS BLOODIER AND BLOODIER THE VIEWER STARTS TO GET ANNOYED ALL THOSE PORTENTOUS PHRASES SO THIS IS HOW IT BEGINS ALL THOSE ENIGMAS ALL THAT ORIENTAL MYSTICISM HE IS SUBTLE TO THE POINT OF FORMLESSNESS ALL THOSE STRANGE POETIC INCANTATIONS OH CAPTAIN MY CAPTAIN OUR FEARFUL TRIP IS DONE WHY DON'T WE FEEL ANY EMOTIONAL CONNECTION TO THE CHARACTERS WHY IS THERE NO INTERNAL LOGIC OR CONSISTENCY WHY DOES HARRY HAVE THOSE DREAMS AT THE BEGINNING LOOKING BACK FROM THE LAST HOUR OF THE SERIES YOU SEE THAT CHARACTERS HAVE DONE ALL SORTS OF THINGS FOR NO FATHOMABLE REASON EXCEPT TO MOVE THE PLOT ALONG THAT'S THE WILD PALMS GESTALT TO ME IT'S SORT OF LIKE VOGUEING THE PLOT THE AMBIANCE THE ACTORS THEY'RE ALL STRIKING VARIOUS POSES LOOKING HOT MOVING FROM ONE FLASHY POSTURE TO THE NEXT BUT WHAT DOES IT ALL ADD UP TO AT ITS CORE WILD PALMS IS A TV SHOW ABOUT TV IT'S TECHNOPOP AGITPROP THE ELECTRONICS MAY BE NEW BUT THE THEME IS A REHASH TELEVISION IS THE OPIATE OF THE MASSES AND A NEW MORE ADVANCED TELEVISION WILL BE EVEN MORE ADDICTIVE BIG BROTHER IS LURKING INSIDE THE TUBE ONE DAY IN THE MIDDLE OF A PROGRAM VIEWERS WILL FIND THE COUNTRY GONE AND NO ONE WILL CARE HARRY SIGHS I WANT TO FIND A DECENT PLACE WHERE PEOPLE RESPECT REALITY WILD PALMS IS QUITE THE TELEVISUALISTIC EXPERIENCE IT'S SO PLUGGED IN ITS TEXTURE IS SO EXQUISITE IT'S SO DARNED COOL YOU REALLY WANT TO LOVE IT BUT IN THE END JUST LIKE ITS SYNTHETIC HOLOGRAMS THE SERIES IS KIND OF VAGUE AND FUZZY AROUND THE EDGES 9305100065 930510 IF SHE WERE AN ELIZA SOME MEN MIGHT CALL HER MY UNFAIR LADY' BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL FOR YEARS SANDRA BECKWITH HAS HEARD THE SAME COMPLAINT MEN CAN'T LIVE WITH THEM CAN'T KILL THEM THE BIMONTHLY NEWSLETTER PLUMBS THOSE MALE HABITS THAT CONFOUND WOMEN MAY'S WOMEN WANT TO KNOW COLUMN ASKS WHY DO MEN ZAP CHANNELS FUTURE ISSUES WILL EXPLORE WHY MEN BARBECUE IT GOES BACK TO CAVEMAN DAYS SAYS MS BECKWITH AND WHY THEY WON'T ASK FOR DIRECTIONS MS BECKWITH PLANS A COLUMN ENTITLED STUPID MEN TRICKS THE FIRST ARTICLE FOCUSES ON A MAN WHO CONFESSED TO ONCE WASHING DIRTY SOCKS BY STUFFING THEM INTO GLASSES IN THE DISHWASHER WHY DIDN'T HE JUST PUT THE SOCKS IN THE WASHING MACHINE THAT REMAINS ONE OF THE GREAT MYSTERIES OF LIFE MS BECKWITH SAYS THE NEWSLETTER OFFERS TIPS ON RAISING SONS TO BE SENSITIVE NEW AGE GUYS AND EDUCATING DERELICT HUSBANDS IN THE REAL HELP COLUMN ONE WOMAN COMPLAINS THAT HER HUSBAND ENDANGERED THE KIDS BY LEAVING TOILET SEATS UP AND MEDICINES OUT MY SOLUTION EVERY TIME HE BROKE AN ESSENTIAL SAFETY GUIDELINE I TOSSED A SPORTS ILLUSTRATED IN THE DIAPER PAIL SHE WRITES HE'S NEVER FISHED ONE OUT AND THE CHILDREN NOW HAVE A SAFER HOME MS BECKWITH INSISTS THE NEWSLETTER IS MEANT TO BRING MEN AND WOMEN CLOSER BUT MEL FEIT EXECUTIVE DIRECTOR OF THE NATIONAL CENTER FOR MEN A MEN'SRIGHTS GROUP THINKS THE ARTICLES ARGUE THAT WOMEN ARE BETTER THAN MEN THEY IMPLY THAT WOMEN ARE WONDERFUL AND MEN ARE JERKS HE SAYS NOT TRUE MS BECKWITH SAYS POINTING OUT THAT HALF THE NEWSLETTER'S 200 SUBSCRIBERS ARE MEN SHE HOPES THE NEWSLETTER WILL IMPROVE THE POOR COMMUNICATION BETWEEN THE SEXES WHICH SHE BLAMES FOR MOST OF THE CONFUSION MEN PREFER DIRECTNESS BUT WOMEN HAVE A HARD TIME WITH THAT SHE SAYS A WOMAN MAY NOT TELL HER HUSBAND HE HAS BAD BREATH FOR EXAMPLE INSTEAD SHE'LL SAY DID YOU NOTICE HOW THE PARAKEET KEELED OVER WHEN YOU WALKED BY' BUT MEN AREN'T MUCH FOR SUBTLETY 9305100063 930510 LEISURE & ARTS BOOKSHELF MIDDLEAGED LIVES DISRUPTED BY PASSION BY JOSEPH OLSHAN SUE MILLER WRITES ABOUT ORDINARY LIVES THROWN OUT OF WHACK EITHER BY PERSONAL TRAGEDY OR OVERPOWERING OBSESSION IN HER FIRST NOVEL MS MILLER PORTRAYED A CHARISMATIC WOMAN WHO WAS IN MOST REGARDS THE GOOD MOTHER BUT WHO UNDER THE INFLUENCE OF ROMANTIC PASSION MADE A MISTAKE IN JUDGMENT THAT CAUSED HER TO LOSE CUSTODY OF HER CHILD THOUGH HER CONSUMMATE POWERS OF OBSERVATION AND CHARACTERIZATION WERE STILL INCHOATE THE PLOT HELD THE READER SHE FREED HERSELF IN HER SECOND NOVEL CREATING IN THE VIVIDLY RENDERED CHARACTERS OF FAMILY PICTURES A FULLY REALIZED WORK FOR LOVE HARPERCOLLINS 301 PAGES 23 HER LATEST NOVEL IS A WONDERFUL AMALGAM OF HER PREVIOUS BOOKS DRIVEN BY NARRATIVE NEVER ONCE DOES IT BEND TO THE DEMANDS OF PLOT THE HEROINE IS 43YEAROLD LOTTIE A TENACIOUS METHODICAL WOMAN WITH A WILD STREAK WHO BECOMES A MEDICAL JOURNALIST AFTER SURVIVING A BOUT WITH BREAST CANCER WHILE RESEARCHING AN ARTICLE LOTTIE GETS INVOLVED WITH A MARRIED DOCTOR NAMED JACK WHOSE WIFE HAS ALREADY SUFFERED A SERIES OF STROKES SHE EVENTUALLY MARRIES HIM SEVEN MONTHS AFTER HE IS WIDOWED A BIT FLIGHTY UNDER PRESSURE LOTTIE JUMPS AT THE CHANCE TO ALLOW HER HUSBAND SOME SOLITARY HEALING TIME SHE RETURNS TO CAMBRIDGE MASS WHERE SHE PLANS TO HELP HER MOODY HEADSTRONG BROTHER CAMERON REFURBISH AND SELL THEIR CHILDHOOD HOME THE HOUSE IS STILL OWNED BY THEIR MOTHER NOW SENILE AND LIVING IN A NURSING HOME SHORTLY AFTER HER ARRIVAL SHE IS JOINED BY THE HANDSOME RAWBONED SON OF HER FIRST MARRIAGE RYAN WHO RETURNS FROM A SEMESTER ABROAD FEELING PUFFED UP AND RAKISH WITH ALL HIS FOREIGN SEXUAL EXPERIENCE BUT MOST IMPORTANTLY FOR THE NOVEL LOTTIE RENEWS HER ACQUAINTANCE WITH CAMERON'S CHILDHOOD SWEETHEART THE ARISTOCRATIC ELIZABETH WHO HAS ALSO RETREATED TO CAMBRIDGE TO GET DISTANCE ON HER OWN FOUNDERING MARRIAGE LOTTIE HELPS ELIZABETH AND CAMERON REESTABLISH CONTACT AND THEN ENVIOUSLY WATCHES MIDDLEAGED LOVE STING CAMERON AND ELIZABETH LIKE A DYING BEE LOTTIE FEELS PESSIMISTIC ABOUT HER LIFE WITH JACK PERFUNCTORY BY COMPARISON AND LACKING ITS FORMER ARDOR ONE OF MS MILLER'S GREAT STRENGTHS IS HER ABILITY TO SHOW THE TERRIBLE DIVIDENDS OF PASSIONATE ACTS DECIDING SHE WANTS HER MARRIAGE BACK ELIZABETH TRIES TO GIVE CAMERON THE BRUSHOFF BUT DETERMINED TO WIN HER OVER HE DRIVES ACROSS BOSTON AND PLOWS RECKLESSLY UP HER DRIVEWAY UNFORTUNATELY ELIZABETH HAS SENT HER AU PAIR GIRL OUTSIDE TO WAYLAY HIM BUT THE AU PAIR IS MOONING OVER RYAN AND HAVING HAD TOO MUCH TO DRINK SHE STEPS IN FRONT OF CAMERON'S CAR WHAT HAPPENS CHAINS ALL CHARACTERS TO ONE ANOTHER WHEREAS A LESSER NOVELIST MIGHT CAPITALIZE ON SUCH AN EVENT BY SHOWING DIFFERENT CHARACTERS' REACTIONS MS MILLER HAS BRILLIANTLY CHOSEN TO CAST THE DRAMA MORE OBLIQUELY CONFINING IT TO LOTTIE'S POINT OF VIEW FINDING THE EVENT SO DISTURBING LOTTIE BEGINS TO REEVALUATE EVERYTHING IN HER LIFE HER AILING MARRIAGE TO JACK HER RELATIONSHIP WITH RYAN WHO SUDDENLY STRIKES HER TO BE CAVALIER HER RELATIONSHIP WITH CAMERON WHO DISCONCERTINGLY DISAPPEARS AFTER THE POLICE HAVE CLEARED HIM OF RESPONSIBILITY TO THIS END MS MILLER EMPLOYS AN EFFECTIVE TECHNIQUE WHILE RELATING AN INCIDENT SHE WILL OFTEN STOP MIDSTREAM TO JUMP FORWARD OR BACKWARD TO DISCLOSE OTHER EVENTS OF IMPORT THAT WILL EVENTUALLY AFFECT THE OUTCOME WHEN SHE FINALLY COMPLETES HER NARRATION THE LAYERING OF PERCEPTION AND EVENTS IS QUITE BEAUTIFULLY EXECUTED IN FOR LOVE AN INTIMATE THIRDPERSON NARRATIVE SOMEHOW MANAGES TO CONVEY AN EFFORTLESS OMNISCIENCE AND YET THE MOST CONSISTENTLY IMPRESSIVE ASPECT OF THE NOVEL IS MS MILLER'S PORTRAYAL OF MIDDLEAGED RELATIONSHIPS BEARING THE HEAVY BAGGAGE OF PREVIOUS LOVES HER CHARACTERS BATTLE THEIR OBSESSIONS IN AN ATTEMPT TO RETAIN SOME DEGREE OF NORMALCY LOTTIE COMES TO REALIZE THAT BOTH SHE AND CAMERON ARE PREDISPOSED TOWARD OBSESSIVE LOVE AND THAT SHE NEEDS TO LEAVE BEHIND A PART OF HER OWN LIFE A PART THAT LOVES THE DARK THAT ALWAYS CHOOSES WHAT'S TEMPORARY WHAT'S THRILLINGLY MARGINAL AND TRY INSTEAD TO TRY AND BUILD SOMETHING PERMANENT OF THE QUOTIDIAN OUT OF DAILY LIFE AND SO THE NOVEL ENDS APPROPRIATELY WITH LOTTIE DRIVING IMPULSIVELY FROM MASSACHUSETTS TO CHICAGO TO FINALLY DETERMINE WHETHER OR NOT SHE AND JACK WILL REMAIN TOGETHER A TOOTH PROBLEM FLARES UP DURING THE JOURNEY AND AS SHE RUSHES WESTWARD HER MOUTH PULSATES IN PAIN AND PRESSES HER TO A POINT OF REVELATION THIS IS A WONDERFUL EXAMPLE OF WHAT MS MILLER HAS SO SUPERBLY WROUGHT IN FOR LOVE SHE TAKES A PAINFUL EVENT AND USES IT LIKE A PACEMAKER INSPIRING THE ENTIRE NOVEL TO BEAT SYMPATHETICALLY TO THE SAME PULSE MR OLSHAN IS A NOVELIST AND CRITIC 9305100062 930510 STARSTRUCK A SATELLITE TV SYSTEM IS QUICKLY MOVING ASIA INTO THE GLOBAL VILLAGE MILLIONS NOW WATCH CNN US SOAPS AND LIFESTYLES OF THE RICH AND FAMOUS' GOVERNMENTS LOSE CONTROL BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL CALCUTTA INDIA KK DUTTA HAS DROPPED BY HIS SISTERINLAW'S APARTMENT TO WATCH A LITTLE SUNDAYEVENING TELEVISION RELIEF FROM THE MONOTONY HE SHRUGS AND WHAT RELIEF IT IS IN THIS HOT CONGESTED CITY OF RICKSHAWS AND RAMSHACKLE BUILDINGS A COMMERCIAL FOR A MINISERIES BASED ON SYDNEY SHELDON'S STEAMY NOVEL RAGE OF ANGELS FADES INTO THE GLITZY OPENING OF LIFESTYLES OF THE RICH AND FAMOUS WITHIN MOMENTS MR DUTTA A 42YEAROLD TOBACCO SALESMAN IS GAWKING AT A MILLIONDOLLAR 40FOOT PINK MERCEDESBENZ CONVERTIBLE LIMOUSINE WOW MR DUTTA EXCLAIMS THAT LIFE IS ENTIRELY DIFFERENT IN CALCUTTA WE SPEND HALF OUR TIME ON TRANSPORT BUT JUST GETTING OURSELVES AROUND DURING A SEGMENT ON ACTRESS BIRGIT NILSSON MR DUTTA ZAPS LIFESTYLES IN FAVOR OF A CRICKET MATCH BETWEEN PAKISTAN AND THE WEST INDIES MR DUTTA'S CHOICES SYMBOLIZE A REVOLUTION IN THE WAY MILLIONS OF ASIANS SEE THE WORLD AND LEAD THEIR LIVES AT THE BEGINNING OF THE 1990S HEAVYHANDED STATERUN TELEVISION DOMINATED ASIA VIEWERS SAW LITTLE PROGRAMMING FROM THE REST OF THE WORLD FEW KNEW HOW THE WORLD SAW THEM TODAY ASIA HAS JOINED THE GLOBAL VILLAGE IN LESS THAN TWO YEARS SATELLITE TELEVISION AN UNNECESSARY COMPLICATION IN MUCH OF CABLECONNECTED NORTH AMERICA AND A COMMERCIAL MINEFIELD IN EUROPE HAS TRANSFORMED THE EASTERN HEMISPHERE A TORRENT OF NEWS SPORTS MUSIC AND SOAP OPERAS IS LOOSENING GOVERNMENT CONTROLS OVER THE MEDIA AND SPAWNING SPINOFF INDUSTRIES RANGING FROM PROGRAMGUIDE PUBLISHING TO SMALL CABLE SYSTEMS VIEWERS ARE CHANGING HABITS AND ONCESTAID ADVERTISERS ARE REVAMPING STRATEGIES EVEN FASHION FLICKERS TO THE TUBE ONE NEW DELHI TAILOR SELLS COPIES OF A POPULAR MUSICTV PERSONALITY'S OUTFITS OUR ABILITY TO CONTROL BECOMES LESS AND LESS AS WE GO ALONG FRETS GEORGE YEO THE STRAIGHTLACED MINISTER OF ARTS AND INFORMATION IN MULTICULTURAL SINGAPORE ONE OF THE FEW PLACES BATTLING TO LIMIT SATELLITE TV'S ACCESS BUT EVEN THE TINY CITYSTATE CAN'T STOP IT MR YEO NOTES THAT A PLANNED CABLETV SYSTEM WILL CARRY THE SATELLITE PROGRAMS ALREADY CHANGING LIVES ELSEWHERE IN THE REGION BEHIND THAT REVOLUTION IS A BIG HONG KONG COMPANY THAT LATCHED ONTO THE IDEAS OF AN AMERICAN ENTREPRENEUR MICHAEL JOHNSON A 43YEAROLD NEW YORK NATIVE WAS SO CONVINCED OF SATELLITE TV'S POTENTIAL IN ASIA THAT HE PERSONALLY TOOK AN OPTION TO BUY A SATELLITE ARGUING THAT FREELY BROADCASTED TV WAS THE IDEAL ADVERTISING FORMAT FOR ASIA'S INCREASINGLY AFFLUENT CONSUMERS HE PERSUADED HUTCHISON WHAMPOA LTD AND ITS CAUTIOUS BILLIONAIRE CHAIRMAN LI KASHING TO SPONSOR THE VENTURE ASIA WAS WIDE OPEN MR JOHNSON SAYS THE SATELLITE ASIASAT I REACHED GEOSTATIONARY ORBIT IN APRIL 1990 A YEAR LATER HUTCHVISION LTD A 300 MILLION JOINT VENTURE BETWEEN HUTCHISON AND MR LI'S FAMILY BEGAN BEAMING TV TO 38 COUNTRIES WITH A COMBINED POPULATION OF 27 BILLION MR JOHNSON IS SERVING AS AN ADVISER TODAY ITS SATELLITE TELEVISION ASIA REGION LTD OR STAR NETWORK CAN BE SEEN FROM JAPAN TO JORDAN SATELLITE DISHES COSTING AS LITTLE AS A FEW HUNDRED DOLLARS HAVE SPROUTED IN MIDDLE AND UPPERCLASS NEIGHBORHOODS AS OF FEBRUARY STAR ESTIMATED THAT AT LEAST 113 MILLION HOUSEHOLDS OR ABOUT 45 MILLION VIEWERS COULD TUNE INQUADRUPLE ITS ESTIMATE LAST JUNE ASIA IS STARSTRUCK AN NBC NEWS CREW ON ASSIGNMENT WITH BURMA'S KAREN INSURGENTS IN THE JUNGLES ALONG THE THAI BORDER NOTICED A SATELLITE DISH SET UP NEAR A MESS TENT AT FIRST THEY THOUGHT IT WAS A COMMUNICATIONS APPARATUS THEN THEY HEARD MUSIC INSIDE THE TENT THE GUERRILLAS WERE GLUED TO MTV THE GOVERNMENTINEXILE OF THE DALAI LAMA TIBET'S GODKING TUNES IN TO STAR SO DOES KHUN SA THE DRUG WARLORD WHO KEEPS HEROIN FLOWING FROM SOUTHEAST ASIA IN CHINA A GOVERNMENT SURVEY SHOWS THAT AT LEAST 48 MILLION HOMES AS MANY AS 25 MILLION PEOPLE CAN RECEIVE STAR MAKING CHINA STAR'S BIGGEST SINGLE MARKET IN ARCHRIVAL TAIWAN NEARLY TWO MILLION HOMES GET STAR AND HALF TUNE TO THEIR FAVORITE SHOW THE AMERICAN POLICE SERIAL HILL STREET BLUES THE NETWORK'S PROGRAMMING IS MAINLY IN ENGLISH NEWS SUPPLIED BY BRITISH BROADCASTING CORP AN ASIAN VERSION OF VIACOM INTERNATIONAL INC'S MTV MUSIC CHANNEL SPORTS ON A CHANNEL PRODUCED IN CONJUNCTION WITH DENVER'S PRIME NETWORK TV PROGRAMS FROM THE US BRITAIN AND AUSTRALIA ON AN ENTERTAINMENT CHANNEL KNOWN AS STAR PLUS AND MANDARINLANGUAGE PROGRAMS ON ITS CHINESE CHANNEL SOME OF THEM POPULAR TO STAR'S SURPRISE AMONG PEOPLE WHO DON'T SPEAK CHINESE THE PENETRATION HAS COMPLETELY EXCEEDED OUR EXPECTATIONS SAYS JULIAN MOUNTER STAR'S CHIEF EXECUTIVE THE NETWORK DOESN'T DISCLOSE FINANCIAL RESULTS BUT INDUSTRY INSIDERS SAY REVENUE FAR EXCEEDS PROGRAMMING COSTS IN JANUARY STAR BOOKED MORE ADVERTISING THAN IN ALL 1992 THE INSIDERS SAY IT HAS ALSO STRUCK A CHORD WITH VIEWERS THE NETWORK GETS 1000 REQUESTS A DAY FOR FACSIMILES OF ITS PROGRAM GUIDE MANY OF THOSE STAR SENDS OUT ARE REPRINTED AND SOLD BY THE RECIPIENTS NOWHERE THOUGH HAS STAR'S IMPACT BEEN MORE APPARENT THAN IN INDIA MANY OF INDIA'S 880 MILLION PEOPLE UNDERSTAND ENGLISH THAT MAKES STAR'S INTERNATIONAL PROGRAMMING HIGHLY ATTRACTIVE TO THE 33 MILLION HOUSEHOLDS THAT RECEIVE IT BEFORE THE REST OF THE WORLD WAS JUST A FANTASY AND NOW IT'S REAL SAYS DEVRAJ KAPOOR A 34YEAROLD AIRLINETICKET AGENT WHO SAYS HE NEVER LIKED DOORDARSHAN INDIA'S STATE TV NETWORK ADDS MADHU JAIN AN EDITOR AT INDIA TODAY A NEWSMAGAZINE STAR GIVES YOU THE FEEL OF RINGSIDE SEATS ON WHAT'S HAPPENING CULTURALLY CONVERSATIONS IN TEA LOUNGES OF NEW DELHI HOTELS OFTEN TURN ON THREE TITILLATING SOAP OPERAS AIRED NIGHTLY ON STAR PLUS RIVIERA THE BOLD AND THE BEAUTIFUL AND SANTA BARBARA MS JAIN AND OTHER CRITICS ASCRIBE THEIR POPULARITY TO SIMILARITIES WITH INDIAN FILMS IT'S THE SAME ESCAPISM RICH BEAUTIFUL PEOPLE HAVING TORRID LOVE AFFAIRS SHE SAYS BUT STAR'S SOAPS GO FURTHER THAN THOSE OF DOORDARSHAN WHICH PROHIBITS KISSING SCENES THE BBC ALSO HAS A HUGE INDIAN FOLLOWING AFTER HINDU EXTREMISTS DEMOLISHED A MOSQUE IN AYODHYA A CITY ABOUT 250 MILES EAST OF NEW DELHI LAST DECEMBER SETTING OFF RIOTS DOORDARSHAN BARRED IMAGES OF THE MOSQUE ATTACK THE BBC BY CONTRAST HAD LIVE REPORTS AND ITS SHARE OF STAR HOUSEHOLDS HOVERED AT 8 AROUND THE CLOCK DOUBLE NORMAL LEVELS AND STAYED THERE FOR A WEEK THOSE RATINGS SLIPPED ONLY WHEN PRIME SPORTS BEGAN COVERING A CRICKET MATCH BETWEEN INDIA AND SOUTH AFRICA SUCH EVENTS HAVE WON STAR A LOT OF LOYALTY IT LAUNCHED PRIME SPORTS IN AUGUST 1991 JUST A MONTH AFTER DOORDARSHAN ABRUPTLY TRUNCATED THE FINALS OF THE WIMBLEDON TENNIS CHAMPIONSHIP TO CARRY THE DAILY NEWS POINTEDLY STAR'S FIRST SPORTS OFFERING WAS 110 HOURS OF COVERAGE OF THE US OPEN TENNIS TOURNAMENT THOUSANDS OF ENTREPRENEURS SUCH AS JASBIR SINGH KOHLI A 43YEAROLD RETIRED ARMY MAJOR MAKE SURE FANS CAN SEE SUCH EVENTS IN JUST A FEW YEARS ACCORDING TO AN ASSOCIATION HE HEADS INDIA'S HOMEGROWN CABLE NETWORKS HAVE EXPANDED INTO A 100 MILLIONAYEAR INDUSTRY FROM HIS APARTMENT IN A SOUTH NEW DELHI NEIGHBORHOOD MR KOHLI RUNS A CABLE NETWORK WITH 1000 SUBSCRIBERS WHO PAY AN AVERAGE OF 5 A MONTH IN AN AREA WHERE INCOMES RUN BETWEEN 100 AND 250 A MONTH ONE SATELLITE DISH IS PERCHED ON THE BALCONY OF HIS MODEST APARTMENT AND TWO MORE ARE ON THE ROOF HIS FRONT ROOM IS JAMMED WITH ELECTRONIC GEAR INCLUDING TWO VIDEOTAPE PLAYERS HE USES TO SUPPLEMENT HIS SATELLITE OFFERINGS WITH FILMS WHEN I STARTED TWO YEARS AGO ABSOLUTELY NOBODY WAS DOING THIS MR KOHLI SAYS AS HE POPS A HINDI MOVIE WHERE IS SUCH LOVE INTO A VIDEOTAPE PLAYER NOW THERE IS NOT AN INCH OF A PLACE IN DELHI NOT COVERED BY CABLE THERE'S NOT A COLONY NOT A SLUM NOT A VILLAGE TO STAY AHEAD OF COMPETITORS HE KEEPS ADDING EQUIPMENT NOW HE CAN PULL IN CABLE NEWS NETWORK AS WELL AS A GOVERNMENT CHANNEL FROM NEIGHBORING PAKISTAN IT'S ANTIINDIAN NO DOUBT ABOUT IT BUT I SAY LET THE PEOPLE SEE IT HE SAYS THE AVERAGE MAN IS AN EDUCATED MAN HE WANTS TO SEE EVERY SIDE OF THE STORY EASY ACCESS TO SUCH INFORMATION VEXES DOORDARSHAN THE STATE TV COMPANY NOTORIOUS FOR DREARY DRAMAS AND TIGHTLY CONTROLLED NEWS PROGRAMS HAS A SECOND CHANNEL IN INDIA'S FOUR BIGGEST METROPOLITAN AREAS NEW DELHI BOMBAY CALCUTTA AND MADRAS IT NOW AIRS DALLAS EVIDENCE ONE DOORDARSHAN EXECUTIVE SAYS THAT WE ARE IN TUNE WITH CHANGE IT CAN'T AFFORD NOT TO BE ALTHOUGH IT STILL DOMINATES INDIAN TV WITH A 40MILLION HOUSEHOLD AUDIENCE AND ANNUAL AD REVENUE OF ABOUT 120 MILLION ITS MARKET HAS BEEN EATEN AWAY BY STAR WHICH CHARGES ONLY ABOUT 1500 FOR A 30SECOND PRIMETIME SPOT COMPARED WITH AT LEAST 10000 ON DOORDARSHAN IN MARCH DOORDARSHAN ANNOUNCED PLANS TO SET UP THREE SATELLITE CHANNELS OF ITS OWN NEWS SPORTS AND ENTERTAINMENT ONE PROBLEM VIEWERS WILL HAVE TO ANGLE THEIR DISHES AWAY FROM THE STAR SIGNAL WE'RE FACING A BIG CHALLENGE THE EXECUTIVE CONCEDES STAR'S POPULARITY HAS INSPIRED OTHER COMPETITORS TOO SINCE LAST OCTOBER A HINDILANGUAGE CHANNEL HAS PIGGYBACKED ON STAR'S APPEAL AND ITS SATELLITE THE CHANNEL KNOWN AS ZEE TV IS OWNED BY ASIA TODAY LTD A VEHICLE OF SEVERAL INDIAN AND FOREIGN INVESTORS INCLUDING THE ANGLOFRENCH FINANCIER SIR JAMES GOLDSMITH IT LOOKS LIKE A GOOD INVESTMENT IN ITS FIRST YEAR ZEE EXPECTS TO EARN 5 MILLION IN ITS SECOND YEAR 20 MILLION WE HAVE AUDIENCES EVERYWHERE WE CAN REACH THE VILLAGES WHERE PEOPLE DON'T SPEAK ENGLISH SAYS SUBHASH CHANDRA ZEE TV'S 42YEAROLD CHAIRMAN LIKE STAR ZEE DEALS MORE FRANKLY WITH TABOOS SUCH AS DIVORCE THAN STATE TV DOES ONE RESULT IS A DEBATE IN INDIA'S PRESS OVER THE CULTURAL INVASION MOREOVER IN A SOCIETY THAT STRONGLY EMPHASIZES EDUCATION MANY PARENTS DECRY SATELLITE TV AS A DISTRACTION FOR CHILDREN I PERSONALLY LIKE TO THINK OUR STYLE OF LIVING AND CULTURE IS SO FAR DIFFERENT FROM WHAT CHILDREN SEE ON STAR THAT PEOPLE WON'T ADAPT TO IT SAYS SUJATA GUPTA A 33YEAROLD HIGHSCHOOL TEACHER IN CALCUTTA MR KOHLI SAYS PARENTS SHOULDN'T WORRY BUT HIS WORDS AREN'T REASSURING I CONSIDER THIS ALL EDUCATION THE ENTREPRENEUR SAYS WAVING HIS HAND AT A TV MONITOR BESIDES HE ADDS EVERYONE KNOWS THE ULTIMATE AIM OF ADOLESCENCE IS TO HAVE SEX SO WHAT IS THE HARM OF LETTING THEM SHOW HOW TO DO IT BETTER A YEAR AGO I MIGHT NOT TALK OPENLY TO MY CHILDREN OF SEX OR AIDS BUT IF THEY ARE IGNORANT WHAT ARE YOU ACCOMPLISHING STAR IS ACUTELY AFRAID OF OFFENDING VIEWERS NOT SURPRISING SINCE HALF THE COUNTRIES IT REACHES ARE ISLAMIC MTV IN ASIA DIDN'T SHOW MADONNA'S CONTROVERSIAL EROTICA VIDEO FOR EXAMPLE THOUGH ITS US SISTER NETWORK DID IT'S NOT IN OUR BEST INTERESTS TO COME IN AND OFFEND ANYBODY A SPOKESMAN SAYS WE WANT AS MANY EYEBALLS AS WE CAN GET BESIDES YOUNGSTERS LIKE STAR'S HOMOGENIZING EFFECT ESPECIALLY MTV WHITNEY HOUSTON'S BODYGUARD ALBUM SOLD 800000 COPIES IN SOUTH KOREA A SIGN OF THE NETWORK'S CROSSCULTURAL CLOUT IN ASIA THANKS TO MTV ONE INDIAN GIRL TOLD STAR I CAN WEAR A MINISKIRT TO A DISCO IN A RITZY CALCUTTA HOTEL SEVERAL TEENAGERS LOITER ABOUT HOPING FOR A GLIMPSE OF DANNY MCGILL OR SOPHIYA HAQUE THE HOSTS OF MTV'S PRIMETIME INDIAN SHOWS WHO ARE IN TOWN TO SHOOT AN MTV WEEKEND SUDDENLY MR MCGILL APPEARS IN THE LOBBY BACK FROM A HELICOPTER TRIP TO A NEARBY TIGER PRESERVE AND HEADS FOR HIS ROOM HE'S SO GORGEOUS SHOUTS 17YEAROLD JOANNE MADEIRA AS SHE SCAMPERS OFF TO INTERCEPT HIM SUCH ENTHUSIASM IS INSPIRING NEW KINDS OF ADVERTISING ON STAR SEEING THE MODERN GRAPHICS ON MTV MANY INDIAN ADVERTISEMENTS HAVE ADOPTED A NEW MORE HIP LOOK JUMPIN' MANGO AN INDIAN FRUIT DRINK IS PUSHED ON MTV WITH QUICK GRAPHICS AND POP MUSIC MORE STAID GODREJ SOAPS LTD USES STAR TO PITCH EXPENSIVE PRODUCTS TO AN UPSCALE MARKET A NEW NICHE IN INDIAN ADVERTISING MULTINATIONALS SUCH AS NIKE AND SONY ALSO ARE EXPERIMENTING ON STAR AIRING UNIFIED CAMPAIGNS IN WHICH THEY SHOW THE SAME COMMERCIAL IN ALL MARKETS AND IMAGE CAMPAIGNS IN WHICH THEY TRY TO BUILD BRAND AWARENESS ADJUSTING TO STAR HAS BEEN TOUGH ON SOME ADVERTISERS PRODUCTS AREN'T THE SAME IN ALL OF STAR'S COUNTRIES PAKISTANI CONSUMERS THOUGHT THEY WERE GETTING FAKE LE SANCY SOAP BECAUSE THE BARS THAT THE MANUFACTURER UNILEVER SA ADVERTISED ON STAR WERE SHAPED DIFFERENTLY FROM THOSE ON SALE IN PAKISTAN AND SOME PRODUCTS SUCH AS SONY'S VIDEO CAMERAS AREN'T AVAILABLE IN SOME MARKETS BUT ADVERTISERS ARE INTRIGUED AND ASTONISHED BY STAR'S REACH WE CAN ADVERTISE A PRODUCT IN THAILAND AND HAVE IT REACH A REMOTE INDIAN AUDIENCE SAYS IRFAN KHAN A GENERAL MANAGER AT HINDUSTAN LEVER LTD A UNILEVER AFFILIATE IN INDIA JUST HOW REMOTE IS EVIDENT IN THE INDIAN HIMALAYAN TOWN OF DHARMSALA A BUDDHIST MONK TWO INDIAN BOYS AND A COUPLE OF TOURISTS SIT ON BENCHES IN A SHACK WITH A DIRT FLOOR THEY HAVE PAID THE EQUIVALENT OF 13 CENTS TO SEE A VIDEOTAPED MOVIE BUT ARE WATCHING A LEVIS COMMERCIAL ON MTV WHILE WAITING FOR THE FILM TO BEGIN EVERYBODY LIKES TO SEE STAR MAYBE BETTER THAN MOVIES SAYS THE VIDEO SHACK'S 18YEAROLD OPERATOR RISHI ABROL THEN HE CONFIDES IN A WHISPER IT'S NOT REAL NOT REAL NO HE SAYS THIS IS ONLY TAPE I GET IT FROM MY FRIEND HE GETS STAR BUT ONE DAY I WILL GET STAR TOO 9305100061 930510 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ASTRO TANKERS LTD INITIAL FIVE MILLION COMMON SHARES VIA LEHMAN BROTHERS AMTRAN INC INITIAL 32 MILLION COMMON SHARES VIA SALOMON BROTHERS ARMOR ALL PRODUCTS 45 MILLION COMMON SHARES VIA MORGAN STANLEY BEST BUY CO 2250000 COMMON SHARES VIA GOLDMAN SACHS BLACKEYED PEA RESTAURANTS INC INITIAL 154 MILLION COMMON SHARES VIA GOLDMAN SACHS CATALYST SEMICONDUCTOR INC INITIAL 25 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES CLAYTON WILLIAMS ENERGY INC INITIAL 28 MILLION COMMON SHARES VIA PAINEWEBBER CROSS TIMBERS OIL CO INITIAL FIVE MILLION COMMON SHARES VIA GOLDMAN SACHS DI Y HOME WAREHOUSE INC INITIAL 22 MILLION COMMON SHARES VIA WILLIAM BLAIR EAGLE HARDWARE & GARDEN INC 45 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES EDMARK CORP 575000 COMMON SHARES VIA PIPER JAFFRAY E'TOWN CORP 500000 COMMON SHARES VIA KIDDER PEABODY EVERGREEN MEDIA CORP INITIAL 35 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE FREMONT GENERAL CORP 24 MILLION COMMON SHARES VIA MERILL LYNCH GAYLORD CONTAINER CORP 175 MILLION OF SENIOR NOTES 150 MILLION OF SENIOR SUBORDINATED DEBENTURES AND 200 MILLION PROCEEDS OF SENIOR SUBORDINATED DISCOUNT DEBENTURES VIA BT SECURITIES IDB COMMUNICATIONS GROUP INC ONE MILLION SHARES VIA HAMBRECHT & QUIST IMCLONE SYSTEMS INC 15 MILLION SHARES VIA SMITH BARNEY HARRIS & UPHAM INDUSTRIE NATUZZI SPA INITIAL 84 MILLION AMERICAN DEPOSITARY SHARES 67 MILLION IN US EACH REPRESENTING ONE COMMON SHARE VIA FIRST BOSTON IRG TECHNOLOGIES INC INITIAL 28 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES KENDALL CO 100 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH & CO LAMAR ADVERTISING CO 100 MILLION OF SENIOR SECURED NOTES VIA GOLDMAN SACHS & CO LCI INTERNATIONAL INC INITIAL 56 MILLION COMMON SHARES VIA BEAR STEARNS NATIONAL FUEL GAS CO 25 MILLION COMMON SHARES VIA MERRILL LYNCH OPTI INC INITIAL 25 MILLION COMMON SHARES VIA PAINEWEBBER SHOWBOAT INC 275 MILLION OF FIRST MORTGAGE BONDS VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP STOLT COMEX SEAWAY SA INITIAL 45 MILLION COMMON SHARES VIA SMITH BARNEY HARRIS & UPHAM TELOR OPHTHALMIC PHARMACEUTICALS INC INITIAL 25 MILLION COMMON SHARES VIA ALEX BROWN & SONS UNION BANK 26 MILLION COMMON SHARES VIA MERRILL LYNCH ZURICH REINSURANCE CENTRE HOLDINGS INC INITIAL 9450000 COMMON SHARES VIA FIRST BOSTON CHESTERFIELD COUNTY VA 57970000 OF SERIES 1993 PUBLIC IMPROVEMENT REFUNDING BONDS DUE 19942011 VIA COMPETITIVE BID VIRGINIA VARIOUS FULL FAITH AND CREDIT BONDS INCLUDING 74465000 OF TRANSPORTATION FACILITIES REFUNDING SERIES 1993A BONDS DUE 19932011 AND 50090000 OF VARIOUS SERIES 1993A BONDS DUE 19942015 VIA COMPETITIVE BID TEXAS PUBLIC FINANCE AUTHORITY 323750000 OF SERIES 1993 B IMPROVEMENT BONDS DUE 19942013 VIA COMPETITIVE BID ARIZONA POWER AUTHORITY 83440000 OF REFUNDING REVENUE BONDS VIA MORGAN STANLEY CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY 220 MILLION OF REVENUE BONDS KAISER PERMANENTE 1993 SERIES A B AND C VIA A MORGAN STANLEY GROUP CALIFORNIA STATE PUBLIC WORKS BOARD 59755000 OF LEASE REVENUE BONDS FOR CALIFORNIA COMMUNITY COLLEGES 1993 SERIES A VIA A MORGAN STANLEY GROUP CYPRESSFAIRBANKS INDEPENDENT SCHOOL DISTRICT TEXAS 105 MILLION OF GENERAL OBLIGATION BONDS VIA A FIRST BOSTON GROUP FORTH WORTH TEXAS 67 MILLION OF GENERAL PURPOSE REFUNDING BONDS TARRANT AND DENTON COUNTIES VIA A GOLDMAN SACHS GROUP LOS ANGELES STATE BUILDING AUTHORITY 100 MILLION LEASE REVENUE REFUNDING BONDS CALIFORNIA DEPARTMENT OF GENERAL SERVICES 1993 SERIES A DUE 19942011 VIA A LAZARD FRERES & CO GROUP LOWER COLORADO RIVER AUTHORITY TEXAS 275 MILLION OF JUNIOR LIEN REFUNDING REVENUE BONDS FIFTH SUPPLEMENTAL SERIES VIA A MORGAN STANLEY GROUP MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES AUTHORITY 108 MILLION OF REFUNDING REVENUE AND JUNIOR LIEN REFUNDING REVENUE BONDS VIA A GOLDMAN SACHS GROUP NEW HAMPSHIRE HIGHER EDUCATIONAL AND HEALTH FACILITIES AUTHORITY 130 MILLION OF REVENUE BONDS DARTMOUTH COLLEGE DUE 19942008 2013 AND 2023 VIA A GOLDMAN SACHS GROUP SHELBY COUNTY TENN 74 MILLION OF GENERAL OBLIGATION REFUNDING BONDS DUE 19982007 VIA A GOLDMAN SACHS GROUP WISCONSIN MADISON 210 MILLION STATE REVOLVING FUND BONDS VIA A PRUDENTIAL SECURITIES INC GROUP 9305100059 930510 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR RETAILERS PROBABLY SAW BUSINESS PICK UP SOMEWHAT IN APRIL BUT THE RETAIL SECTOR STILL LACKS THE PUNCH NEEDED TO LIFT THE MODEST ECONOMIC EXPANSION TO A HIGHER LEVEL ALL INDICATIONS ARE THAT RETAIL SALES POSTED A MODERATE GAIN IN APRIL FOLLOWING A BIG DROP IN MARCH THAT WAS ATTRIBUTED PARTLY TO BAD WEATHER ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST CO IN CHICAGO SAID A COMMERCE DEPARTMENT REPORT DUE THIS WEEK WILL PROBABLY SHOW A 08 INCREASE IN APRIL RETAIL SALES AUTO SALES WERE QUITE BRISK AND GENERAL MERCHANDISING WAS UP AFTER A WEAK MARCH MR DEDERICK SAID BUT WE'RE STILL NOT TALKING BY ANY MEANS A VIGOROUS NUMBER AN APRIL INCREASE IN RETAIL SALES WOULD REPRESENT ONLY A PARTIAL BOUNCEBACK FROM THE 1 AND 03 DECLINES IN MARCH AND FEBRUARY HE ADDED AND THE OUTLOOK FOR RETAIL SALES IS FOR ONLY MEASURED ADVANCES BECAUSE UNDERLYING ECONOMIC FUNDAMENTALS SUCH AS JOB GROWTH REMAIN WEAK MR DEDERICK SAID ON THE POSITIVE SIDE THE LACK OF SIGNIFICANT DEMAND FOR RETAIL GOODS IS HELPING TO KEEP PRICES UNDER CONTROL MR DEDERICK FORECAST A SCANT 02 INCREASE IN THE APRIL CONSUMER PRICE INDEX SAYING FEARS EARLIER IN THE YEAR OF RENEWED INFLATION WERE UNFOUNDED 9305100058 930510 LEISURE & ARTS DANCE MARK MORRIS BACK AT BAM BY DALE HARRIS BROOKLYN NY THE MARK MORRIS DANCE GROUP'S RECENT STOPOVER AT BROOKLYN ACADEMY OF MUSIC WAS NOT ONLY ENJOYABLE IT WAS ALSO REASSURING THE CLEAREST SIGN FOR MANY MONTHS THAT DANCE HAS A FUTURE AS WELL AS A PAST THESE PERFORMANCES MOREOVER VERIFIED WHAT WAS APPARENT DURING MR MORRIS'S SEASON AT THE MANHATTAN CENTER BALLROOM IN APRIL 1992 THE CHOREOGRAPHER IS NOW AT A PEAK OF CREATIVITY HIS BRILLIANT HARD NUT PRESENTED AT BAM IN DECEMBER WAS CREATED A YEAR EARLIER FOR THE THEATRE DE LA MONNAIE IN BRUSSELS DANCES TO AMERICAN MUSIC AS THE BAM PROGRAM WAS CALLED IS AN IMPRESSIVE ACCOMPLISHMENT A GROUP OF PIECES DISPLAYING THE QUALITIES THAT HAVE MADE MR MORRIS THE HOPE OF CONTEMPORARY DANCE NOT SIMPLY IN THE US BUT WORLDWIDE INVENTIVENESS IMAGINATIVENESS AN IRRESISTIBLE CREATIVE ENERGY NOW 37 HE IS THE ONLY CHOREOGRAPHER OF HIS GENERATION TO HAVE EXTENDED THE EXPRESSIVE SCOPE OF DANCE WHILE AFFIRMING ITS ESSENTIAL NATURE AS A FORMALLY PERSUASIVE ART THE FORMAL ASPECT OF HIS ACHIEVEMENT IS WORTH EMPHASIZING IF ONLY BECAUSE HE IS STILL OCCASIONALLY DISMISSED AS WILLFUL AND PERVERSE SOMEONE MORE INTERESTED IN SHOCKING THAN ENLIGHTENING A DEDICATED CRAFTSMAN MR MORRIS FASHIONS HIS MATERIAL WITH EXEMPLARY CARE IN VIRTUALLY EVERY CASE TAKING BOTH HIS ORGANIZATIONAL AND EMOTIONAL CUES FROM THE MUSIC BEHEMOTH THE ONE PIECE OF HIS THAT IS DANCED TO SILENCE IS SO CLEAR AND STRONG IN DESIGN AS TO IMPLY THE SHAPING INFLUENCE OF MUSIC THE PRESENCE OF WHICH WE SENSE BEHIND THE UNFOLDING VISUAL PATTERNS MUSIC HOWEVER IS NOT SIMPLY A STARTING POINT FOR MR MORRIS'S CHOREOGRAPHY AND NEVER SIMPLY AN ACCOMPANIMENT RATHER IT IS THE PRINCIPAL MEANS BY WHICH HE ACHIEVES STRUCTURAL COHERENCE AND DEPTH OF FEELING INCITED TO CHOREOGRAPHY BY A PASSION FOR MUSIC RATHER THAN BY AN IDEOLOGICAL AGENDA MR MORRIS THROUGHOUT HIS CAREER HAS EXEMPLIFIED THE CONVICTION THAT DANCE THE REGULATED MOVEMENT OF BODIES IN SPACE AND TIME IS IN ITSELF EXPRESSIVE INDEED THAT IT IS AMONG THE MOST ELOQUENT FORMS OF DISCOURSE IN THE ARTS THE FACT THAT MR MORRIS LEAVES MOVEMENT TO SPEAK FOR ITSELF PUTS HIM IN THE ILLUSTRIOUS COMPANY OF CHOREOGRAPHERS LIKE GEORGE BALANCHINE FREDERICK ASHTON AND MERCE CUNNINGHAM IN MOSAIC AND UNITED THE WORLD PREMIERE THAT OPENED MR MORRIS'S PROGRAM HERE HE DEPLOYS HIS CAST AT BAM MADE UP OF FIVE DANCERS FROM HIS OWN GROUP AND FIVE FROM MIKHAIL BARYSHNIKOV'S WHITE OAK PROJECT IN PATTERNS AND IMAGES THAT INTENSIFY THE PASSIONATE TONE OF HENRY COWELL'S STRING QUARTETS NOS 3 AND 4 THE POWERFUL LITTLEKNOWN MUSIC TO WHICH THE PIECE IS SET AT TIMES THE DANCERS TREMBLE AT OTHERS THEY THRUST THEIR FLATTENED PALMS INTO THE AIR AS IF WARDING OFF THE MALIGN INTENTIONS OF FATE AT YET OTHERS THEY SWING THEIR ARMS IN HUGE CIRCLES OR GRIP THEIR HANDS BEHIND THEIR NECKS LOOKING AS TENSE AS MICHELANGELO'S SLAVES OFTEN THEY FALL TO THE FLOOR SOMETIMES SHAKING WITH EMOTION IN THE END THEY ARE ABSORBED INTO AND GIVEN EMOTIONAL SUSTENANCE BY THE ENTIRE GROUP IN MOSAIC AND UNITED A TITLE THAT LINKS THE NAMES THAT COWELL AFFIXED TO RESPECTIVELY HIS THIRD AND FOURTH QUARTETS THE CHOREOGRAPHER DEMONSTRATES THE SUBTLETY OF HIS RESPONSE TO MUSIC FOR MOST OF THE WORK'S LENGTH HE SETS THE DANCERS MOVING IN A COMPLEX RHYTHMIC COUNTERPOINT TO THE RHYTHMS OF THE QUARTETS AT THE SAME TIME HE IS NOT AFRAID WHENEVER IT SUITS HIS PURPOSES TO KEY THE DANCE ACTION PRECISELY TO THE STRONG BEATS OF THE MUSIC IN ORDER TO GIVE EXPRESSION TO THE LATTER'S KINETIC VITALITY A QUALITY NO OTHER DANCE MAKER TODAY CAN TRANSLATE SO STRIKINGLY INTO CHOREOGRAPHY MR MORRIS DOES THE SAME AND WITH SIMILAR EFFECTIVENESS IN THREE PRELUDES A SOLO DANCE SET TO A TRIO OF GERSHWIN PRELUDES FOR PIANO WHICH MR MORRIS DANCED ON OPENING NIGHT AT BAM AND SUBSEQUENTLY ALTERNATED IN WITH MR BARYSHNIKOV IT WAS REVELATORY TO SEE MR MORRIS IN THIS WORK WHEN GIVEN ITS NEW YORK DEBUT LAST SEASON DURING A GUEST APPEARANCE BY MR BARYSHNIKOV WITH NEW YORK CITY BALLET IT WAS GREETED BY MANY AS SIMPLY A VEHICLE FOR A GREAT DANCER IT IS MORE THAN THAT THOUGH SHORT IT IS IN FACT A WORK OF EXPRESSIVE SUBSTANCE DANCED BY MR MORRIS IT LOOKED NO LESS INTRIGUING THAN WHEN DANCED BY MR BARYSHNIKOV BUT IN A DIFFERENT WAY WHEREAS THE RUSSIAN DANCER HAD BEEN TAUT BRILLIANT IMPERSONAL MR MORRIS WAS RELAXED LYRICAL TOUCHINGLY VULNERABLE THE PROGRAM'S OTHER WORLD PREMIERE HOME IS DANCED TO SONGS AND INSTRUMENTAL NUMBERS COMMISSIONED FROM THE POP SINGER MICHELLE SHOCKED AND THE BASSIST ROB WASSERMAN WHO PERFORMED THEIR OWN PIECES HOME ENCOMPASSES A WIDE RANGE OF ATTITUDES FROM THE PASSIONATE TO THE LOWDOWN WHILE MS SHOCKED SANG ABOUT THE WOES OF COUNTRY LIVING AS EXPERIENCED BY POOR WOMEN THE DANCERS MOSTLY FEMALE PERFORMED A SERIES OF SWEEPING MOVEMENTS SUGGESTIVE SOMETIMES OF YEARNING SOMETIMES OF DAWNING SELFAWARENESS IN BETWEEN THESE PASSAGES TO THE JOYFUL SOUND OF MR WASSERMAN ON THE BASS OR THE FIDDLE A TRIO OF DANCERS MR MORRIS JUNE OMURA AND MEGAN WILLIAMS DID SOME LIVELY INCREASINGLY COMPLEX CLOGGING BY JUXTAPOSING THESE VERY DIFFERENT KINDS OF DANCES THE ONE LYRICAL THE OTHER EXUBERANT MR MORRIS MADE A WITTY AND ILLUMINATING CONNECTION BETWEEN THE INNER LIVES THAT PEOPLE LEAD AND THE SOCIAL RITUALS BEHIND WHICH THOSE LIVES ARE HIDDEN GRAND DUO SET TO LOU HARRISON'S GRAND DUO FOR VIOLIN AND PIANO IS A FOURPART WORK THE LAST SECTION OF WHICH POLKA WAS SEEN AT THE MANHATTAN CENTER BALLROOM LAST APRIL MR MORRIS HAS NOW CHOREOGRAPHED THE WHOLE OF GRAND DUO SO THAT POLKA THE MASSED MOVEMENTS OF WHICH CALL TO MIND THE HERMETIC WORLD OF TRIBAL RITUALS IS NOW THE JOYFUL CLIMAX OF A SEQUENCE OF POWERFUL MASS DANCES IN THESE THE MEMBERS OF THE GROUP SEEM TO CONFRONT THEIR SPIRITUAL DESTINY POINTING TO A LIGHT ABOVE THEIR HEADS AND SUBMITTING TO THE AUTHORITY OF A FEMALE LEADER MR MORRIS'S DANCERS ARE DEVOTED AND ACCOMPLISHED AMONG THOSE WHO ENSURED THE SUCCESS OF DANCES TO AMERICAN MUSIC ALYCE BOCHETTE OLIVIA MARIDJANKOOP MIREILLE RADWANDANA AND KEITH SABADO STOOD OUT SO DID THE GUEST DANCERS ESPECIALLY KATE JOHNSON ROB BESSERER AND THE SELFLESS AND INVARIABLY BEGUILING MR BARYSHNIKOV 9305100057 930510 TECHNOLOGY INFORMATION AGE SOMEDAY CARDS MAY MAKE COINS OBSOLETE BY WILLIAM M BULKELEY CONSIDER THE COIN SMALL SIMPLE AND PERFECTED OVER THOUSANDS OF YEARS OF HUMAN USE COINS WOULD SEEM UNLIKELY CANDIDATES FOR REPLACEMENT BY ELECTRONICS THINK AGAIN SAY SMART CARD ZEALOTS COINS' PROBLEMS ARE LEGION YOU NEVER HAVE ENOUGH COINS WHEN YOU NEED THEM TO BUY NEWSPAPERS FROM VENDING MACHINES WHEN YOU MAKE SMALL PURCHASES CHANGE ALWAYS SEEMS TO COME IN PENNIES IF YOU KEEP CHANGE IN YOUR POCKETS IT RATTLES IT'S HARD TO FISH OUT ON A TOLL ROAD SMART CARDS THAT CAN SOLVE THESE AND OTHER ANNOYANCES ARE APPEARING ON CAMPUSES IN THE US IN JAPAN THEY'RE ALREADY USED IN A VARIETY OF PLACES TO REPLACE SMALL BILLS AND CHANGE BOOSTERS HOPE THEY'RE ABOUT TO START REPLACING CHANGE ON A WIDER SCALE IN THE US TOO WHILE THE NEW CARDS LOOK LIKE THE FAMILIAR US CREDIT CARD THEY'RE DIFFERENT IN CONCEPT A CREDIT CARD REPRESENTS A LOAN A COIN CARD IS AN ELECTRONIC PURSE THAT HOLDS ELECTRONIC CASH EACH TIME IT'S USED THE AMOUNT OF THE PURCHASE PRICE IS AUTOMATICALLY DEDUCTED BY AN ELECTRONIC READER WHEN THE ELECTRONIC PURSE IS EMPTY THE CARD CAN'T BE USED ANYMORE WORLDWIDE MOST ELECTRONIC COIN CARDS ARE PAPER CARDS WITH A MAGNETIC STRIPE HOLDING A SPECIFIC SUM THE CARDS MOST OFTEN USED FOR PAY PHONES ARE PURCHASED FOR A CERTAIN AMOUNT AND THROWN AWAY WHEN ALL THE MONEY HAS BEEN USED SOME US TRANSIT SYSTEMS SUCH AS THE WASHINGTON SUBWAY SYSTEM USE THE PAPER CARDS BUT IN THE NOTTOODISTANT FUTURE PLASTIC COIN CARDS SMART CARDS WITH A TINY MICROPROCESSOR MAY BECOME COMMON USERS COULD TRANSFER MONEY TO THE CARDS FROM THEIR BANK ACCOUNTS BY INSERTING THE CARDS INTO AUTOMATED TELLER MACHINES JUST AS THEY NOW WITHDRAW CASH FROM ATMS AS THE CARD EMPTIED THEY COULD REFILL IT BEFORE THIS HAPPENS HOWEVER BANKS WILL HAVE TO ESTABLISH CLEARING NETWORKS TO KEEP STRAIGHT WHERE THE MONEY IS COMING FROM AND TO WHOM IT'S GOING SMART CARDS' TIME HAS FINALLY COME SAYS JOSEPH SCHULER A GAITHERSBURG MD CONSULTANT IN THE US WE'RE FINALLY BEGINNING TO SEE SOME OF THE APPLICATIONS WE THOUGHT WE'D SEE THREE OR FOUR YEARS AGO HE SAYS THE VENDING MACHINE INDUSTRY IS PARTICULARLY INTERESTED IN USING SMART CARDS SMART CARD READERS COST AS LITTLE AS 50 MAKING THEM CHEAPER AND MORE RELIABLE THAN BILLCHANGERS VENDORS THINK VANDALISM WOULD DIMINISH BECAUSE THERE WOULDN'T BE ANY COINS TO STEAL FROM THE MACHINES UNIMPEDED BY COINS NEWSPAPERS COULD RAISE PRICES YEARLY THEY COULD EVEN CHARGE 39 CENTS OR 99 CENTS INSTEAD OF THE MORE INTIMIDATING 40 CENTS OR 1 STUDENTS AT MANY COLLEGES AROUND THE COUNTRY ALREADY USE COLLEGEISSUED ELECTRONIC PURSES IN SODA MACHINES LIBRARY COPIERS DORMITORY LAUNDRIES AND EVEN CAFETERIAS AT LOYOLA UNIVERSITY IN BALTIMORE LETTING STUDENTS PAY FOR MEALS WITH THEIR CARDS LED TO AN INCREASE IN MEAL PLAN USERS TO 1670 FROM 1200 AS A RESULT OF THE GREATER CONVENIENCE BECAUSE IT'S SIMPLE TO CHARGE DIFFERENT PRICES FOR DIFFERENT MEALS THE CAFETERIA HAS EXPANDED ITS MENU EVEN OFFERING LOBSTER TAILS ON THURSDAY NIGHTS WE'VE FOUND THE CARDS ARE TREMENDOUSLY POPULAR SAYS MEL BLACKBURN DIRECTOR OF ADMINISTRATIVE SERVICES PETER TRUSCELLO PRESIDENT OF DANYL CORP A MOORESTOWN NJ MAKER OF SMART CARD SYSTEMS EVEN CLAIMS PARENTS SAY KIDS BRING HOME LESS DIRTY LAUNDRY BECAUSE THEY CAN USE THEIR COIN CARDS IN SCHOOL LAUNDROMATS WE SEE SMART CARDS AS A MAJOR LINE OF BUSINESS SAYS DONALD J GLEASON MANAGER SMART CARD ENTERPRISE FOR MONEY ACCESS SERVICE INC AN AUTOMATICTELLERMACHINE NETWORK IN THE MIDATLANTIC STATES AND MIDWEST ESTABLISHED BY CORESTATES FINANCIAL CORP MONEY ACCESS IS PLANNING TO SET UP A PILOT SMART CARD NETWORK FOR SMALL PURCHASES IN THE WILMINGTON DEL AREA IN THE NEAR FUTURE MR GLEASON PREDICTS THAT CARDS ALSO WILL BE POPULAR IN FAST FOOD OUTLETS THAT RESIST CREDIT CARDS BECAUSE OF THE TIME NEEDED TO GET PHONE AUTHORIZATIONS CONVENIENCE STORES ARE ANOTHER TARGET MARKET ESPECIALLY FOR NIGHTTIME USE WHEN AVOIDING CASH COULD CUT DOWN ON ROBBERIES MR GLEASON SAYS VENDORS WOULD PAY BANK FEES THAT ARE LOWER THAN FOR CREDIT CARDS AMERICAN TELEPHONE & TELEGRAPH CO'S SMART CARD AND SYSTEMS DIVISION IS DEMONSTRATING A SECURITYCONSCIOUS CARD THAT WORKS WITH CASH MACHINES DEVELOPED BY ITS NCR CORP SUBSIDIARY THE CARD SLIDES INTO A SLOT ON THE CASH MACHINE THE USER THEN DICTATES WORDS INTO A TELEPHONE HANDSET AND THE SMART CARD COMPARES THEM WITH A VOICE PRINT STORED IN ITS MEMORY THE CARD CAN BE USED LIKE ANY CASH CARD TO GET BILLS BUT IT ALSO CAN STORE 20 OR 50 IN ITS MEMORY TO BE SPENT WHEN NEEDED AT&T ALSO HAS DESIGNED A RADIO TRANSMITTER THAT CAN BE CLIPPED INSIDE A CAR WINDOW SLIDE THE SMART CARD INSIDE IT AND TOLL ROADS CAN AUTOMATICALLY COLLECT MONEY AS THE CAR SWEEPS THROUGH A SPECIAL TOLL LANE WITHOUT EVEN SLOWING DOWN THE SYSTEM IS ALREADY IN OPERATION ON THE AUTOSTRADA IN ITALY AND IS BEING INSTALLED ON A TOLL ROAD IN ORANGE COUNTY CALIF YOU'LL NEVER BE CAUGHT SHORT OF CHANGE SAYS DIANE WETHERINGTON PRESIDENT OF THE AT&T UNIT THE BENEFITS OF USING A SMART CARD EXPAND WHEN THE ELECTRONIC PURSE ALSO IS PROGRAMMED FOR OTHER USES IN JAPAN SMART CARD MAKER OKI ELECTRIC INDUSTRY CO ISSUES MULTIFUNCTION CARDS TO EMPLOYEES THE SAME CARD CAN BE USED TO UNLOCK A DOOR TO GET INTO A PARKING LOT TO PUNCH A TIME CLOCK TO PAY FOR FOOD IN THE CAFETERIA AND TO BUY GOODS AT LOCAL STORES HOWEVER SMART CARDS ARE SPREADING FASTEST IN SINGLEPURPOSE USES THE MARINES PAY TRAINEES AT PARRIS ISLAND BOOT CAMP IN SOUTH CAROLINA ON SMART CARDS THAT CAN BE USED AT THE BASE POST EXCHANGE SAYS MICRO CARD TECHNOLOGIES INC A DALLASBASED UNIT OF FRANCE'S GROUPE BULL THAT MAKES THE CARDS POM INC RUSSELLVILLE ARK SAYS IT CAN ADD SMARTCARD READERS TO ITS DIGITAL PARKING METERS FOR LESS THAN 50 APIECE NOT ONLY WILL IT CUT DOWN ON VANDALISM BUT IT LETS MUNICIPALITIES FINETUNE THEIR CHARGES ONE FLORIDA RESORT COMMUNITY WANTS TO SELL RESIDENTS 50 WORTH OF PARKING FOR 35 WHILE TOURISTS PAY FULL BOAT SAYS A SALESMAN MASS TRANSIT IS ANOTHER AREA WITH MANY CARD APPLICATIONS IN ENGLAND CARDS ARE ISSUED TO STUDENTS THAT GIVE THEM DISCOUNTED FARES FOR SCHOOL COMMUTES FIVE DAYS A WEEK BUT CHARGE REGULAR RATES AT OTHER TIMES SENIORS CAN GET CARDS THAT CHARGE LESS FOR RIDES OUTSIDE RUSH HOUR CARDS SOMETIMES PROVE WORTHWHILE FOR EVEN THE SIMPLEST OF FUNCTIONS AT SEVERAL RESORTS CLUB MED HAS STARTED PROVIDING GUESTS WITH CASH CARDS INSTEAD OF THE TRADITIONAL BEADS TO PAY FOR DRINKS PEOPLE SPEND ONETHIRD MORE SAYS STEPHAN SEIDMAN EDITOR OF SMART CARD MONTHLY A NEWSLETTER IN MONTARA CALIF 9305100056 930510 ENTERPRISE UTILITY REBATES POWER SALES OF ENERGYSAVING PRODUCTS SMALL BUSINESSES MAKING CONSERVATION DEVICES BENEFIT FROM GREEN TREND BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL IS THERE A MARKET FOR A PRODUCT THAT MAKES YOU FEEL GUILTY FOR TAKING A LONG HOT SHOWER APPARENTLY FOUR CALIFORNIANS CONFRONTED WITH CONSERVATION DEMANDS BECAUSE OF THEIR STATE'S CHRONIC DROUGHT HAVE DEVELOPED A BATTERYPOWERED METER THAT MEASURES WATER FLOW THROUGH A SHOWER HEAD FAUCET OR GARDEN HOSE THE METER CALLED WATERTRACKER ALSO MAY CUT HOUSEHOLD ENERGY BILLS RELYING ON THE PREMISE THAT PEOPLE WILL TAKE SHORTER SHOWERS IF THEY ARE ABLE TO WATCH THE GALLONS AND THE DOLLARS ADDING UP THE WATERTRACKER IS A GOOD EXAMPLE OF HOW SMALL COMPANIES' PRODUCTS ARE FILLING AN ARRAY OF NEEDS ARISING FROM THE ENERGYCONSERVATION MOVEMENT ENERGYSAVING EQUIPMENT AND SERVICES HAVE DEVELOPED INTO A MULTIBILLIONDOLLAR BUSINESS LARGELY THE RESULT OF UTILITIES' REBATES FOR CUSTOMERS WHO BUY APPROVED ENERGYSAVING PRODUCTS PRESIDENT CLINTON'S PROPOSED ENERGY TAX PROBABLY WILL FOCUS ADDITIONAL ATTENTION ON INNOVATIVE WAYS TO SAVE ENERGY THE NUMBER OF SMALL BUSINESSES INVOLVED IN VARIOUS ASPECTS OF ENERGY CONSERVATION IS SOARING THE ENERGY EFFICIENT BUILDING ASSOCIATION A WAUSAU WIS TRADE GROUP SAYS ATTENDANCE AT ITS 1993 ANNUAL MEETING JUMPED TO SLIGHTLY OVER 700 FROM ABOUT 400 A YEAR AGO WITH ABOUT 80 OF THE DELEGATES REPRESENTING SMALL BUSINESSES SMALL FIRMS' ENERGYCONSERVATION PRODUCTS NOW GO FAR BEYOND BASIC ITEMS SUCH AS ATTIC INSULATION AND COVER VIRTUALLY ANYTHING THAT PROMISES ENERGY SAVINGS AT HOME OR AT WORK AND MANY PRODUCTS ARE FAR MORE SPECIALIZED AND SOPHISTICATED THAN BEFORE DEVELOPING THE WATERTRACKER FOR EXAMPLE INVOLVED HELP FROM A GERMAN ENGINEERING FIRM LICENSING A MAGNETIC INDUCTION SENSOR FROM A CONNECTICUT COMPANY AND THE CREATION OF A SPECIAL COMPUTER PROGRAM FOR THE METER'S CONTROLLER SMALL BUSINESSES ARE PLAYING THE CONSERVATION GAME IN WAYS AS VARIED AS THEIR PRODUCTS WATERTRACKER IS MADE BY MUIR PRODUCTS INC A MOUNTAIN VIEW CALIF CONCERN BEGUN TWO YEARS AGO BY A PHOTOGRAPHER AN ENGINEER A PRODUCT DESIGNER AND A GRAPHICS ARTIST THE COMPANY IS SO SMALL THAT ONLY CLARK DUNBAR THE PHOTOGRAPHER WORKS FOR IT FULL TIME BUT THERE SEEMS TO BE CONSIDERABLE INTEREST IN ITS METER PRODUCTION BEGAN IN LATE 1991 AND THE COMPANY HAS SOLD VIRTUALLY ALL OF ITS INVENTORY ACCORDING TO MR DUNBAR THE SUGGESTED RETAIL PRICE FOR THE METER IS 65 HE SAYS THE BIGGEST INITIAL CUSTOMER WAS THE US DEPARTMENT OF ENERGY WHICH ORDERED 350 WATERTRACKERS AS PART OF A TEST OF LOWFLOW SHOWER HEADS A WATERTRACKER CLICKS OFF GALLONS OF WATER ON A SMALL DIGITAL SCREEN JUST AS A FILLING STATION PUMP RECORDS A GASOLINE SALE MR DUNBAR SAYS HE SLASHED HIS OWN WATER USAGE FROM ABOUT 18 GALLONS TO EIGHT GALLONS A SHOWER AFTER WATCHING THE METER'S FIGURES CLIMB I STOPPED DAYDREAMING IN THE SHOWER HE NOTES MUIR PRODUCTS IS HUNTING WIDELY FOR POSSIBLE CUSTOMERS BY TARGETING CONSUMER CATALOGS THE NURSERY INDUSTRY AND ODDLY HORSE FARMS IT TURNS OUT THAT MONITORING A HORSE'S DAILY WATER CONSUMPTION IS A CLUE TO ITS STATE OF HEALTH MR DUNBAR SAYS FOR INSTANCE A HORSE THAT DOESN'T DRINK ENOUGH IN RELATION TO ITS FORAGE IS PRONE TO COLIC A GASTROINTESTINAL BLOCKAGE SOME UTILITIES ALREADY ARE INTERESTED IN THE WATERTRACKER'S ENERGYCONSERVATION POTENTIAL PACIFICORP HAS TESTED WATERTRACKER METERS AS PART OF AN ENERGYSAVING RESEARCH PROJECT WE WERE QUITE HAPPY WITH IT SAYS DAVID ROBISON AN ENGINEERING ECONOMIST FOR THE PORTLAND ORE UTILITY UTILITIES' EXPANDED CONCERN ABOUT ENCOURAGING CONSERVATION IS HELPING OTHER STARTUP COMPANIES TO PROSPER AS WELL AMONG THEM IS FLEXIWATT CORP A THREEYEAROLD COMPANY IN ARLINGTON VA THE FIRM WHICH DOES BUSINESS AS FLEXIWATT LIGHTING IS TAKING ADVANTAGE OF COMMERCIAL LANDLORDS' PUSH TO UPGRADE THEIR FLUORESCENT LIGHTING FIXTURES THE RUSH IS ON BECAUSE MOST UTILITIES NOW WILL SUBSIDIZE THE COST OF CHANGING THE LIGHTING FIXTURE'S BALLAST A DEVICE THAT DELIVERS A HIGHVOLTAGE CHARGE TO START FLUORESCENT TUBES BURNING FROM A MAGNETIC DESIGN TO A MORE EFFICIENT ELECTRONIC DESIGN FLEXIWATT BEGAN MAKING ELECTRONIC BALLASTS THIS YEAR WE'RE SELLING ALL WE CAN MAKE SAYS JOHN CLARK FLEXIWATT'S PRESIDENT HE ESTIMATES THAT 1993 SALES WILL REACH BETWEEN 10 MILLION AND 15 MILLION MR CLARK SAYS THE COMPANY IS LOOKING BEYOND ELECTRONIC BALLAST MANUFACTURING A FIELD DOMINATED BY LARGER RIVALS HE SEES ELECTRONIC BALLASTS AS GIVING FLEXIWATT THE RESOURCES REQUIRED TO MOVE INTO A MORE ADVANCED ENERGYCONSERVATION MARKET ELECTRONIC DIMMING AND COMPUTERCONTROLLED LIGHTING SYSTEMS PROGRAMMED DIMMING OF A COMMERCIAL BUILDING'S LIGHTING DURING OFF HOURS IS AN ELEMENT IN THE DESIGN OF SOCALLED SMART BUILDINGS SUCH STRUCTURES CONSERVE ENERGY BECAUSE THEIR COMPUTERCONTROLLED ENERGY USAGE CAREFULLY RISES AND FALLS TO MEET DEMAND LANDLORDS CAN TRIM THEIR ANNUAL LIGHTING BILL UP TO 60 BY COMBINING ELECTRONIC BALLASTS MORE EFFICIENT FLUORESCENT TUBES AND DIMMING DEVICES SAYS MR CLARK ON A NATIONAL BASIS IT'S A SIGNIFICANT PART OF TOTAL ENERGY CONSUMPTION HE ADDS UTILITIES ARE PROPELLING A SALES SURGE FOR ENERGY CONSERVATORY INC TOO THERE IS NOTHING FANCY ABOUT A BLOWER DOOR THE MAIN PRODUCT OF THIS 10YEAROLD MINNEAPOLIS FIRM YOU FIT THE TEST DEVICE WHERE THE FRONT DOOR OF A HOUSE USUALLY GOES TURN ON THE LARGE FAN IN THE MIDDLE AND THEN MEASURE THE AIR PRESSURE INSIDE THE RESULT YOU DETECT HOW MUCH AIR LEAKS OUT OF AN ENTIRE HOUSE AND THUS THE RATE OF HEAT LOSS DURING COLD WEATHER FROM THERE YOU KNOW EXACTLY WHERE TO PATCH LEAKS AND INSULATE FIVE YEARS AGO WE SOLD MAYBE 100 BLOWER DOORS A YEAR TODAY WE'RE SELLING 1000 A YEAR SAYS GARY NELSON VICE PRESIDENT OF THE FIRM THE BASIC MODEL COSTS 1350 THE SEVENEMPLOYEE COMPANY HAD SALES OF 18 MILLION IN 1992 UP FROM 15 MILLION IN 1991 BESIDES UTILITIES MR NELSON FINDS HOME BUILDERS ALSO ARE BUYING A GREATER NUMBER OF BLOWER DOORS THE BIGGEST SOURCE OF RECENT SALES HAS BEEN COMMUNITY ACTION AGENCIES WHICH CONDUCT FEDERALLY SUBSIDIZED WEATHERIZATION PROGRAMS FOR LOWINCOME HOMEOWNERS MR NELSON FORESEES THE POSSIBILITY OF SELLING HUNDREDS OF THOUSANDS OF BLOWER DOORS THE AVERAGE NEW HOUSE IN SWEDEN USES ONETHIRD THE ENERGY OF THE AVERAGE NEW HOUSE IN MINNESOTA WE'RE NOT EVEN CLOSE TO DOING WHAT'S OPTIMAL IN TERMS OF ENERGYEFFICIENT CONSTRUCTION HE CONTENDS BUT IS ENERGY CONSERVATORY SIMPLY A FOULWEATHER FIRM HARDLY MR NELSON SAYS HIS FIRM HAS DEVELOPED A NEW PRODUCT FOR WARMER CLIMATES A DUCT BLASTER THAT CAN MEASURE LEAKS FROM AIRCONDITIONING DUCTS 9305100055 930510 WHO'S NEWS SWINGNSLIDE CORP SWINGNSLIDE CORP JANESVILLE WIS THIS HOME PLAYGROUND EQUIPMENT MAKER NAMED THOMAS R BAER CHAIRMAN AND RICHARD G MUELLER PRESIDENT AND CHIEF OPERATING OFFICER MR BAER 39 YEARS OLD WILL CONTINUE IN HIS POST AS CHIEF EXECUTIVE OFFICER WHICH HE HAS HELD SINCE 1979 HE SUCCEEDS FORMER CHAIRMAN ADREW W CODE 34 WHO WILL REMAIN AS A DIRECTOR MR MUELLER 43 MOST RECENTLY WAS A VICE PRESIDENT OF TORO CO THE POST OF CHIEF OPERATING OFFICER IS NEW 9305100054 930510 GIANT WORMS DREW TOURISTS TO VILLAGE BUT LURE IS GONE NOW TRAVELERS TO AUSTRALIA VISIT A MUSEUM TO EXPERIENCE SOMETHING WORMDERFUL' BY JAMES P STERBA STAFF REPORTER OF THE WALL STREET JOURNAL KORUMBURRA AUSTRALIA WHEN LAST WE TURNED TO THE WORLD'S LARGEST WORM MUCH CONTROVERSY WAS AFOOT TO THE ASTONISHMENT OF LOCAL DAIRY FARMERS THEIR LOCAL WORM THE GIANT GIPPSLAND EARTHWORM OR GGE FOR SHORT TURNED UP IN GENEVA SWITZERLAND ON A LIST OF THE WORLD'S ENDANGERED INVERTEBRATES BUGS MOSTLY THE MELBOURNE ZOOLOGIST WHO NOMINATED IT FOR THE LIST ARGUED THAT THE WORM REPUTED TO BE AS BIG AROUND AS A GARDEN HOSE AND AS LONG AS 10 FEET WAS VULNERABLE IN PART BECAUSE IT WAS GETTING TOO MUCH PUBLICITY UNTIL THEN THE PUBLICITY CAME MAINLY FROM KORUMBURRA'S ANNUAL WEEKLONG GIANT WORM FESTIVAL WHICH ATTRACTS THOUSANDS OF VISITORS AND THEIR BADLYNEEDED CASH EACH MARCH THE ENDANGERED BUG LIST PUBLISHED BY THE INTERNATIONAL UNION FOR THE CONSERVATION OF NATURE ONLY ADDED TO THE WORM'S FAME FARAWAY MUSEUMS PLEADED FOR SPECIMENS OF THE GGE WHICH MAKES LOUD GURGLING AND SUCKING SOUNDS AS IT SLITHERS THROUGH ITS MUDDY BURROWS RUMORS OF A WORMSMUGGLING UNDERGROUND SPREAD ALARMED ENVIRONMENTALISTS CALLED FOR THE CREATION OF THE WORLD'S FIRST WORM PRESERVE OUT OF THOUSANDS OF ACRES OF PRIME PASTURE THUS POTENTIALLY ENDANGERING THE LOCAL DAIRY FARMERS THAT WAS EIGHT YEARS AGO TODAY AS THE AUSSIES WOULD SAY THE KERFUFFLE CONTINUES UNABATED FOR STARTERS SIX NEW HOUSES SIT ON A BLUFF ON THE EDGE OF THE NEARBY HAMLET OF POOWONG TESTAMENT TO THE NEWEST THREAT TO BOTH FARMERS AND WORMS THE RELENTLESS SPRAWL OF SUBURBAN MELBOURNE FOR MODESTPRICED HOMES COMMUTERS ARE WILLING TO SPEND AN HOUR AND A HALF IN TRAFFIC DRIVING THE 60 OR SO MILES TO THE CITY'S CENTER OUT OF THOSE HOMES FLOW WASTE WATER AND SEWAGE INTO SEPTIC TANKS WHICH DRAIN INTO A GULLY UNTIL RECENTLY THAT GULLY WAS PRIME REAL ESTATE FOR WORMS THEY WON'T LAST WITH ALL THE SOAPY WATER RUNNING THROUGH THEIR HOLES SAYS MARK HOLMES WHO ONCE DUG UP THE GULLY WITH A BACK HOE AND FOUND WORMS APLENTY FOR A BRITISH BROADCASTING CORP FILM CREW MR HOLMES A 44YEAROLD FORMER SUBARU DEALER WHO MADE THE COMMUTE TO MELBOURNE HIMSELF UNTIL HIS FIRST HEART ATTACK IS IN THE CATTLE EMBRYOTRANSPLANT BUSINESS NOW AND BEMOANS THE ENCROACHMENT OF HOUSING PLOTS AND SHEEP WHICH HE CALLS GRASS LICE INTO THE PASTORAL CATTLE COUNTRY WHERE HE GREW UP KORUMBURRA'S GOVERNING COUNCIL IS ALSO CONCERNED RECENTLY IT ISSUED A ONEYEAR MORATORIUM ON RURAL SUBDIVISIONS MEANWHILE AT THE VICTORIA MUSEUM IN MELBOURNE BEVERLEY D VAN PRAAGH A 29YEAROLD ZOOLOGIST HAS BEEN STUDYING THE GGE FOR HER DOCTORAL THESIS FULL TIME SINCE 1987 DESPITE ARTICLES IN THE TABLOIDS DUBBING HER WORM WOMAN SHE SAYS THE WORM'S SIZE HAS BEEN EXAGGERATED IT AVERAGES ONLY ABOUT THREE FEET IN LENGTH AND ITS HABITAT SEEMS TO BE MUCH SMALLER THAN THE 250000 ACRES OF SOUTH GIPPSLAND SURVEYED EARLIER SAYS MS VAN PRAAGH DIGGING AROUND BILL GREEN'S DAIRY FARM NEAR POOWONG EVERY TWO WEEKS OR SO SHE SAYS THE WORM'S RANGE APPEARS LIMITED TO WITHIN 100 FEET OR SO OF A WATER SOURCE MOST LIVE IN STREAM BANKS SHE SAYS A LOT OF THE ORIGINAL IDEAS PEOPLE HAD ABOUT THE GGE TURNED OUT TO BE WRONG SAYS ALAN L YEN HER SUPERVISOR THE WORM IS VERY FRAGILE AND WE THINK VERY LONGLIVED PERHAPS 20 OR 30 YEARS AND ITS HABITAT IS VERY VERY PATCHY CONSISTING OF SMALL SCATTERED AREAS IT WAS PROBABLY MUCH MORE WIDESPREAD BEFORE THE 1930S WHEN SOUTH GIPPSLAND'S VAST TEMPERATE RAIN FORESTS WERE CLEARED FOR FARMING SINCE 1988 THE GGE HAS BEEN PROTECTED ON PAPER BY THE STATE OF VICTORIA'S FLORA AND FAUNA GUARANTEE ACT BUT IMPLEMENTATION OF ITS PROVISIONS INCLUDING THE REQUIREMENT OF A STATE LICENSE TO DIG UP THE WORMS IS JUST BEGINNING WHEN IT COMES TO PROTECTING THE SPINELESS CREATURES DR YEN DESPAIRS OF THE PREVAILING PUBLIC ATTITUDE THAT CREEPYCRAWLIES SHOULD BE SWATTED RATHER THAN SAVED THIS HE SAYS AMOUNTS TO A CONCEPTUAL BARRIER TO INVERTEBRATE CONSERVATION IN MARCH KORUMBURRA'S WORM WEEK CALLED THE KARMAI FESTIVAL AFTER AN ABORIGINAL PHRASE FOR LAND OF THE GIANT WORM LIMPED THROUGH ITS 16TH SEASON BICKERING OVER WHETHER THE FESTIVAL COMMITTEE OUGHT TO CONTINUE USING VOLUNTEERS OR HIRE A PROFESSIONAL ORGANIZER DECLINING VOLUNTEERISM CAUSED THE COMMITTEE TO DROP THE ANNUAL CROWNING OF A GIANT WORM KING AND QUEEN ALTHOUGH THEY STILL GOT 45 RESIDENTS TO PROPEL A 180FOOT CLOTH WORM IN THE ANNUAL PARADE THERE WAS ALSO A BUSH DECATHLON WHICH INCLUDES SUCH EVENTS AS EEL SKINNING RABBITTRAP SETTING AND SHEEP COUNTING A SPAGHETTIEATING CONTEST AND FIREWORKS TRAGICALLY KORUMBURRA'S EFFORTS TO FURTHER CAPITALIZE ON THE WORM TOOK A MAJOR TURN FOR THE WORSE IN 1987 THAT IS WHEN TWO ENTREPRENEURS WITH POLITICAL CONNECTIONS GOT STATE PERMITS TO BUILD THE GIANT WORM MUSEUM HOUSED IN A 300FOOTLONG CONCRETE REPLICA OF THE GGE TROUBLE IS IT IS LOCATED NEAR THE TINY TOWN OF BASS A GOOD 20 MILES SOUTHWEST OF KORUMBURRA AS THE KOOKABURRA FLIES KORUMBURRANS INSIST THAT IS ALSO WELL OUTSIDE THE NATURAL HABITAT OF THE NEAREST FREERANGE WORM NO MATTER SAY MUSEUM INVESTORS WHO WERE MORE CONCERNED ABOUT LOCATING IN THE PATH OF FOREIGN TOURISTS THAN IN THE PATH OF LOCAL WORMS THEY ERECTED THEIR MILLIONDOLLAR MUSEUM STRATEGICALLY ON THE ROAD TO VICTORIA STATE'S BIGGEST TOURIST ATTRACTION THE FAMED PHILLIP ISLAND PENGUIN PARADE EACH DAY AT SUNDOWN HUNDREDS OF FAIRY PENGUINS EMERGE FROM THE SEA WHERE THEY FEED BY DAY MARCH UP A SAND BEACH AND INTO BURROWS WHERE THEY SLEEP BLEACHERS AND BOARDWALKS HAVE BEEN ERECTED ON THE BEACH TO HOLD THE HORDES OF TOURISTS WHO COME FROM MELBOURNE WE LOST THE WORM CONCEDES BRIAN A BLAKE EDITOR OF THE SOUTH GIPPSLAND SENTINELTIMES THE WEEKLY NEWSPAPER IS PUBLISHED IN KORUMBURRA WHERE A 30000 STUDY FUNDED BY THE GOVERNMENT JUST CONCLUDED THAT TOURISM HOLDS THE AREA'S BIGGEST POTENTIAL FOR ECONOMIC GROWTH THE TOURISTS NOW BYPASS KORUMBURRA THEIR BUSES TURNING DOWN THE SOUTH FORK OF THE GIPPSLAND HIGHWAY AND MAKING LATE AFTERNOON PIT STOPS AT THE WORM MUSEUM IT HAS BECOME SO POPULAR THAT ITS OWNERS HAVE ADDED A SNACK SHOP SOUVENIR STORE A WALLABY AND KANGAROO ENCLOSURE AND WOMBAT WORLD AN EXHIBIT OF NOCTURNAL MARSUPIALS NATIVE TO AUSTRALIA EACH DAY VISITORS PAY 5 EACH TO WALK THROUGH THE CONCRETE WORM LISTEN TO ITS RECORDED GURGLES SMELL THE WORM'S CREOSOTELIKE ODOR AND BECOME A WORM BY LOOKING AT A MODEL OF THE WORLD FROM THE WORM'S POINT OF VIEW IF IT HAD EYES WHICH IT DOESN'T THERE IS ALSO AN EIGHTMINUTE VIDEO ENTITLED A WORMDERFUL EXPERIENCE ON A RECENT AFTERNOON FIVE ACTUAL LIVE WORMS WERE ON DISPLAY SAID TO HAVE BEEN DUG UP ON JIM WATSON'S FARM NEAR KORUMBURRA DR YEN OF MELBOURNE'S VICTORIA MUSEUM ASSERTS THERE IS NO EVIDENCE THAT A WORMDIGGING LICENSE WAS OBTAINED 9305100053 930510 REVIEW & OUTLOOK EDITORIAL ASIDES REDRESS AND BALANCE THE WORD LAST WEEK WAS THAT PRESIDENT CLINTON IS DISSATISFIED WITH THE NAMES BEING BROUGHT TO HIM FOR AN APPOINTMENT TO THE SUPREME COURT NOT WEIGHTY ENOUGH HIS DESIRE IN THE WORDS OF ONE AIDE IS FIND ME SOMEBODY WHO WHEN THE NAME IS HEARD PEOPLE SAY YES WOW A HOME RUN THAT PERSON BELONGS ON THE SUPREME COURT' WELL THIS RAISES INTERESTING POSSIBILITIES RECALL THAT DURING THE DARK DAYS OF REPUBLICAN PRESIDENTIAL RULE A SUPREME COURT RETIREMENT WAS ALWAYS AN OCCASION FOR LIBERALS TO CALL FOR A HIGH COURT NOMINEE WHO WOULD PROVIDE IDEOLOGICAL BALANCE AT LEAST SINCE THE REAGAN APPOINTMENT OF CHIEF JUSTICE REHNQUIST AND THEN ANTONIN SCALIA LIBERALS SUCH AS TED KENNEDY HOWARD METZENBAUM PATRICK LEAHY JOE BIDEN AND FORMER NOW PRESIDENT ELEANOR SMEAL WHO SAID IN 1985 THAT PRESIDENT REAGAN WAS PACKING THE JUDICIARY WITH CONSERVATIVE WHITE MEN HAVE TOUTED THE NEED FOR JUDGES WHO WON'T TIP THE IDEOLOGICAL SCALE IN AN EXTREME WAY WE NOTE THOUGH THAT JUSTICES SOUTER O'CONNOR AND KENNEDY ARE WIDELY THOUGHT TO HAVE SLID TOWARD THE CENTER AND WE NOTICED THAT RETIRING JUSTICE BYRON WHITE WAS CONSIDERED A CONSERVATIVE WE PERCEIVE A BALANCE PROBLEM SO IF INDEED THE PRESIDENT WANTS PEOPLE AT THIS JUNCTURE TO LEAP UP AND SAY YES WOW A HOME RUN WE SUGGEST THAT HE CONSIDER NOMINATING ROBERT BORK IN THE INTEREST OF BALANCE 9305100052 930510 CREDIT RATINGS CENTOCOR INC MALVERN PA STANDARD & POOR'S CORP AFFIRMED ITS TRIPLEC RATING ON 230 MILLION OF SUBORDINATED DEBT OF THIS BIOTECHNOLOGY CONCERN AND REMOVED THE RATING FROM ITS CREDITWATCH LIST CENTOCOR'S DEBT WAS PLACED ON CREDITWATCH IN JANUARY S&P'S SAID THE RATINGS AFFIRMATION REFLECTS THE COMPANY'S NEW LOWERRISK BUSINESS STRATEGY DECLINING CASH USE AND SUBSTANTIAL CASH RESERVES CENTOCOR HAS ABANDONED EFFORTS TO BECOME A FULLY INTEGRATED BIOPHARMACEUTICAL FIRM AFTER FAILING TO RECEIVE MARKETING APPROVAL FOR ITS LEAD THERAPEUTIC PRODUCT CENTOXIN S&P SAID IT WILL FOCUS EFFORTS ON DEVELOPING INNOVATIVE MONOCLONAL ANTIBODYBASED DIAGNOSTIC AND THERAPEUTIC PRODUCTS FOR MARKETING BY OTHERS COSTSAVING MEAURES INCLUDE CUTS IN JOBS TO LESS THAN 600 EMPLOYEES COMPARED WITH MORE THAN 1600 LAST YEAR THE RATINGS AGENCY SAID EL PASO ELECTRIC CO EL PASO TEXAS MOODY'S CHANGED THE DIRECTION OF ITS REVIEW OF THIS UTILITY'S RATINGS TO POSSIBLE UPGRADE FROM UNCERTAIN CITING EL PASO'S PROPOSED BANKRUPTCYLAW REORGANIZATION PLAN REFLECTING A POSSIBLE MERGER WITH THE CENTRAL & SOUTH WEST CORP ABOUT 5 BILLION OF SECURITIES ARE AFFECTED MOODY'S ALSO CONFIRMED THE RATINGS OF CENTRAL & SOUTH WEST AND ITS AFFILIATES BASED ON THE BELIEF THAT THE MERGER AS CURRENTLY STRUCTURED WON'T EXERT ANY MATERIAL ADVERSE EFFECT ON THE DALLAS UTILITY'S CREDIT QUALITY UNDER THE PROPOSED MERGER EL PASO WOULD EMERGE FROM BANKRUPTCY AS A WHOLLY OWNED OPERATING SUBSIDIARY OF CENTRAL & SOUTH WEST WHICH WOULD BE RECAPITALIZED SO THAT ITS NEW SECURITIES COULD BE ACTIVELY TRADED IN THE CREDIT AND EQUITY MARKETS FOREST OIL CORP DENVER STANDARD & POOR'S CORP SAID IT RAISED ITS RATINGS ON THE SENIOR DEBT OF THIS OIL AND GAS EXPLORATION FIRM TO SINGLEB FROM SINGLEBMINUS AND SUBORDINATED DEBT TO TRIPLECPLUS FROM TRIPLEC ABOUT 150 MILLION IN DEBT IS AFFECTED THE RATINGS REMAIN ON CREDITWATCH WITH POSITIVE IMPLICATIONS S&P SAID ITS UPGRADE REFLECTS IMPROVED NATURAL GAS PRICES A LOWERRISK OPERATING STRATEGY AND IMPROVED COST STRUCTURE THE RATINGS AGENCY SAID FOREST CHANGED ITS OPERATING STRATEGY IN EARLY 1992 AFTER WEAK DRILLING RESULTS HELPED PUSH THE COMPANY INTO A POOR FINANCIAL POSITION FOREST THEN FOCUSED ON ACQUIRING AND ENHANCING PROVED PRODUCING PROPERTIES INSTEAD OF EXPLORATION S&P SAID THE SENIOR DEBT RATING COULD BE RAISED TO SINGLEBPLUS AND SUBORDINATED RATING TO SINGLEBMINUS IF FOREST OIL'S PROPOSED COMMON STOCK OFFERING IS COMPLETED THE OFFERING WOULD RAISE ABOUT 40 MILLION WITH PROCEEDS EXPECTED TO BE USED FOR DEBT REDUCTION 9305100051 930510 MARKETING BRIEF NOTED WHO'S NEWS TOM ARNOLD HAS QUIT THE ABC SITCOM THE JACKIE THOMAS SHOW BUT THE GESTURE IS SOMEWHAT MEANINGLESS AN INDUSTRY EXECUTIVE SAID ABC A UNIT OF CAPITAL CITIES/ABC INC WAS NOT GOING TO RENEW THE PROGRAM FOR THE FALL SEASON ABC'S FALL SCHEDULE WILL BE ANNOUNCED THIS WEEK ALTHOUGH JACKIE THOMAS DREW A FAIRLY LARGE AUDIENCE ITS RATINGS WERE NOT AS HIGH AS ABC EXPECTED THE SHOW FOLLOWED THE TOPRATED ROSEANNE WHICH STARS MR ARNOLD'S WIFE ROSEANNE ARNOLD LAST MONTH MRS ARNOLD THREATENED TO PULL ROSEANNE FROM ABC FOLLOWING THE 199394 SEASON IF ABC DID NOT IMMEDIATELY RENEW JACKIE THOMAS 9305100050 930510 ENTERTAINMENT MALL REPLICATES A SANITIZED LOS ANGELES BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES IT LOOKS LIKE ANOTHER SUNNY DAY AT VENICE BEACH WOMEN IN BIKINIS OGLE WEIGHT LIFTERS HEFTING BARBELLS MEN IN BEACH CHAIRS THROW BACK BUDWEISERS AS THEY WATCH PRO FOOTBALL ON A GIANTSCREEN TV THAT RISES NEARLY 40 FEET IN THE AIR A GIANTSCREEN TV ON THE BEACH THIS ISN'T THE FAMOUS VENICE BEACH ON THE PACIFIC OCEAN IT'S CITYWALK A NEW ENTERTAINMENT AND SHOPPING PROMENADE 20 MILES EAST IN THE SAN FERNANDO VALLEY BUILT BY MCA INC JUST NEXT TO ITS UNIVERSAL STUDIOS TOUR THIS TWOBLOCK OUTDOOR ATTRACTION IS DESIGNED TO HAVE THE FEEL OF LOS ANGELES OR AT LEAST THE LA OF THE MIND BESIDES THE FAUX VENICE BEACH IT HAS THE BILLBOARDS AND NEON OF SUNSET BOULEVARD THE NEOMEXICAN FACADES OF OLVERA STREET AND THE CHIC SHOPS OF MELROSE AVENUE BY DESIGN THOUGH SOME THINGS ARE MISSING THE CRIME HOMELESSNESS ROWDY CROWDS AND TRAFFIC THAT MCA OFFICIALS SAY MAKE THE CITY OF ANGELS A PAIN IN THE NECK NONETHELESS CITYWALK WHICH OPENS LATER THIS MONTH ISN'T JUST A SCRUBBEDUP REFLECTION OF THE CITY ITS ARCHITECTS WHO HAVE FAVORED ECLECTIC OVER HARMONIOUS DESIGN HAVE WORKED IN A CERTAIN AMOUNT OF GRAFFITI ON THE BUILDINGS AND NONPANHANDLING STREET PERFORMERS WILL GIVE THE PLACE A CITY FEEL WITHOUT THE HASSLES THE LOCALS WILL NO LONGER HAVE TO JOURNEY TO SANTA MONICA TO ENJOY THE THIRD STREET PROMENADE OR FIGHT FOR PARKING IN VENICE TO ENJOY VENICE BEACH SAYS DAVID WEITZNER PRESIDENT OF WORLDWIDE MARKETING AT MCA'S RECREATION SERVICES DIVISION YOU'VE NEVER SEEN ANYTHING LIKE THIS OTHER NONTRADITIONAL RETAIL ENVIRONMENTS SUCH AS THE FORUM SHOPS AT CAESARS PALACE IN LAS VEGAS WITH THEIR ANIMATED FOUNTAIN SCULPTURE HAVE POPPED UP RECENTLY IN A BID TO WIN BACK CUSTOMERS BUT THE CITYWALK PROJECT WHICH REPLICATES THE VERY CITY IN WHICH IT IS HOUSED NOT A MAKEBELIEVE OR FAR AWAY PLACE SHOWS HOW FAR DEVELOPERS ARE GOING TO MAKE SHOPPING ENTERTAINING SOME LOCALS ARE SKEPTICAL ABOUT CITYWALK'S PITCH I'M A LITTLE OLD TO BE DRINKING BEER WITH THE GUYS AND WATCHING MONDAY NIGHT FOOTBALL ON A FAKE BEACH SAYS MICHAEL WESTER A COMMUNITY ACTIVIST HE HAS OTHER GRIPES IT'S GOING TO BE A HASSLE TO GET THERE AND YOU'RE GOING TO HAVE TO PAY FOR PARKING PEOPLE IN LOS ANGELES HATE TO PAY FOR PARKING THE STANDARD PARKING FEE AT CITYWALK WILL BE 5 THOUGH THERE WILL BE SOME KIND OF VALIDATION DISCOUNT ANGELENOS LIKE MR WESTER SUGGEST THAT MCA MAY HAVE MADE ONE MISCALCULATION NOT ALL RESIDENTS MIND WHAT SOME SEE AS THE CITY'S IMPERFECTIONS INCLUDING LIVELY COLLEGEAGE CROWDS IN WESTWOOD AND THE DRIVE TO THE BEACH AND MANY PEOPLE GO TO VENICE JUST TO SEE THE REAL STREET PERFORMERS TAROTCARD READERS AND CHAINSAW JUGGLERS FOR EXAMPLE THAT ARE DIFFICULT TO MIMIC FOR A GRATED AUDIENCE IT'S NOT THAT FAR TO GLADSTONE'S IN MALIBU MR WESTER SAYS REFERRING TO A LOS ANGELES RESTAURANT THAT WILL BE PART OF CITYWALK I KIND OF LIKE THE DRIVE AND IT'S MORE FUN OUT THERE ON THE REAL BEACH ALTHOUGH MCA SAYS LOCALS ARE EXPECTED TO MAKE UP THE LARGEST GROUP OF VISITORS TO CITYWALK IT IS ALSO COUNTING ON TOURISTS THE COMPANY IS EXCITED ABOUT THE 100 MILLION PROJECT IN PART BECAUSE IT BELIEVES THAT CITYWALK IS A KEY ELEMENT IN TURNING THE HILL ITS SPRAWLING PROPERTY THAT IN ADDITION TO THE STUDIO TOUR INCLUDES UNIVERSAL'S OUTDOOR AMPHITHEATER SEVERAL RESTAURANTS AND TWO HOTELS INTO A VIABLE TOURIST DESTINATION AS OPPOSED TO A ONEDAY VISIT CITYWALK IS ALSO BUILT NEXT TO MCA'S 18SCREEN CINEPLEX ODEON MOVIETHEATER COMPLEX THE HIGHESTGROSSING CINEMA IN THE COUNTRY BESIDES A NUMBER OF SHOPS AND RESTAURANTS INCLUDING A CAFE DESIGNED BY CELEBRITY CHEF WOLFGANG PUCK CITYWALK SPORTS A SHOWMOTION THEATRE IN WHICH SHOWSCAN CORP WILL FEATURE A MOTION SIMULATED RIDEFILM SIMILAR TO THE STAR TOURS ATTRACTION AT DISNEYLAND THE MUSEUM OF NEON ART HAS RELOCATED ITS HEADQUARTERS TO CITYWALK FROM DOWNTOWN LOS ANGELES UCLA HAS SET UP AN EXTENSION CENTER WHERE ADULTS CAN TAKE NIGHT CLASSES AND THERE WILL BE WHAT MCA CALLS A FUTURISTIC ELECTRONICS PAVILION THAT WAS CREATED WITH THE HELP OF MOVIE DIRECTOR STEVEN SPIELBERG FOR PANASONIC THE MAJOR BRAND OF MCA'S PARENT JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO ARCHITECTS HAVE INCLUDED A HOST OF DETAILS THEY HOPE WILL MAKE ANGELENOS FEEL THAT THEY'VE BEEN HERE BEFORE A SPOKESMAN SAYS THE REAL PALM TREES AT THE MAKEBELIEVE BEACH BEND JUST THE WAY THE WINDBRUSHED ONES ALONG THE OCEAN DO THERE ARE MANY OLD BILLBOARDS AND SIGNS THAT ONCE HUNG AROUND LOS ANGELES INCLUDING AN OLD ATLANTIC RICHFIELD SIGN AND THE MARQUEE FROM STEELE'S MOTEL A VALLEY LANDMARK THAT CLOSED YEARS AGO CITYWALK'S PROMISE OF A SAFE ENVIRONMENT IS EXPECTED TO BE A DRAW EVEN THOUGH VIOLENCE BROKE OUT A FEW YEARS AGO AT THE NEIGHBORING CINEMAS WHEN BOYZ N THE HOOD OPENED AND A SNIPER RECENTLY OPENED FIRE ON MCA'S NEARBY HEADQUARTERS INJURING SEVERAL EMPLOYEES MCA SAYS IT HAS SET UP A LOS ANGELES COUNTY SHERIFF'S SUBSTATION IN THE MIDDLE OF CITYWALK IT IS ALSO SIGNIFICANT THAT AMID A TOUGH ECONOMIC ENVIRONMENT IN SOUTHERN CALIFORNIA MCA HAS FOUND TENANTS WILLING TO SIGN FIVEYEAR LEASES FOR NEARLY ALL OF THE AVAILABLE SPACES STILL FOR MANY LOCALS CITYWALK MAY SEEM LIKE JUST ANOTHER MALL IN A PLACE THAT DOESN'T NEED ONE WHILE THERE APPEAR TO BE SOME ORIGINAL STORES AND MUSEUMS SHOPPERS CAN FIND MANY OF THE RETAILERS CLOSER TO HOME INCLUDING CRABTREE & EVELYN AND A SAM GOODY SUPERSTORE MUSIC OUTLET AND THE BUILTIN IMPERFECTIONS MAY NOT GO FAR ENOUGH THE Z ON THE SIGN FOR THE HOLLYWOOD FREEZWAY ICECREAM SHOP FOR EXAMPLE IS SPRAY PAINTED BUT IT DOESN'T LOOK LIKE REAL GRAFFITI SOME OF THE EARLY INNOVATIVE IDEAS FOR CITYWALK INCLUDING CEMENTING PIECES OF TRASH LIKE GUM WRAPPERS INTO SIDEWALKS WERE DROPPED MCA THOUGH BELIEVES THAT CITYWALK HAS JUST THE RIGHT FEEL IT WON'T ESTIMATE HOW MANY PEOPLE WILL VISIT CITYWALK IN ITS FIRST YEAR BUT IT IS BETTING THAT THE NUMBER OF GUESTS VISITING THE ENTIRE UNIVERSAL CITY COMPLEX WILL GROW CURRENTLY ABOUT FIVE MILLION PEOPLE VISIT THE UNIVERSAL STUDIOS TOUR EVERY YEAR A NUMBER THAT HAS BEEN RISING AS THE TOUR HAS GROWN FROM A TRAMRIDE BASED EXPERIENCE TO INCLUDE RIDES AND ATTRACTIONS THREE MILLION MORE PEOPLE VISIT THE MOVIETHEATER AND AMPHITHEATRE COMPLEX EACH YEAR THE MOVIE THEATER MCA EXECUTIVES SAY COULD BE THE KEY WITH ITS 18 SCREENS PLAYING ALL THE HOTTEST FILMS IN RELEASE ROUGHLY 15000 LOCALS VISIT THE CINEPLEX ODEON ON A SATURDAY NIGHT UNTIL NOW THEY HAVE HAD TO GO ELSEWHERE FOR AN AFTERMOVIE BITE TO EAT IT WILL MAKE PEOPLE COME HERE EARLIER AND STAY HERE LONGER MR WEITZNER SAYS AFTER SEEING JESUS CHRIST SUPERSTAR' AT THE AMPHITHEATER OR JURASSIC PARK' AT THE MOVIE THEATER YOU CAN WALK OUT TO RESTAURANTS THAT ARE OPEN AND A STREET THAT'S JUMPING 9305100049 930510 NUTRI/SYSTEM AGREES TO GIVE CONTROL OF COMPANY TO CHICAGO INVESTOR GROUP BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE CONFUSION THAT HAS BESET NUTRI/SYSTEM INC AND ITS DIET CENTERS IS LUMBERING TOWARD SOME SORT OF RESOLUTION AS A CHICAGO INVESTOR GROUP REACHED AN AGREEMENT WITH THE COMPANY AND ITS BANKS TO TAKE OPERATIONAL CONTROL ALL THE PARTIES HAVE AGREED FOR US TO ASSUME CONTROL OF THE BOARD AND OPERATIONAL CONTROL OF THE COMPANY SAID MICHAEL E HEISLEY LEAD INVESTOR OF HEICO ACQUISITIONS CO BUT LOOSE ENDS REMAIN FOR INSTANCE HEICO HAS TO OVERCOME A LASTMINUTE HURDLE CAUSED BY A COMMUNICATIONS MIXUP UNDER A PREVIOUS BANKRUPTCYCOURT RULING THE NEGOTIATORS HAD TO REACH AN AGREEMENT BY NOON FRIDAY OTHERWISE AN INTERIM TRUSTEE WOULD BE NAMED FOR THE COMPANY MR HEISLEY SAID THAT ALTHOUGH A PACT WAS REACHED BEFORE THE DEADLINE AND NOTIFICATION SENT IT FAILED TO REACH US BANKRUPTCY COURT JUDGE DAVID A SCHOLL IN TIME AND HE THEN APPOINTED A TRUSTEE NOW THE JUDGE HAS TO RESCIND HIS ORDER NAMING A TRUSTEE BEFORE HEICO CAN ASSUME OPERATIONAL CONTROL IN ADDITION HEICO ISN'T BUYING THE COMPANY OUTRIGHT UNDER THE AGREEMENT THE INVESTOR GROUP WILL PROVIDE WORKING CAPITAL FOR AN INTERIM PERIOD OF TIME UNTIL THEY CAN DO DUE DILIGENCE INVESTIGATION SAYS GARY SCHILDHORN AN ATTORNEY REPRESENTING NUTRI/SYSTEM NEVERTHELESS FRANCHISEES ARE HOPING THAT THE AGREEMENT REACHED WITH HEICO WOULD RESTORE SOME ORDER TO THE BLUE BELL PA COMPANY AND ITS FARFLUNG FRANCHISE SYSTEM THIS TAKES A TREMENDOUS BURDEN OFF US SAID DAVID SKULNIK WHO OWNS 61 FRANCHISE CENTERS IN NEW JERSEY AND ILLINOIS NUTRI/SYSTEM PLUNGED INTO CHAOS TWO WEEKS AGO WHEN ITS CREDITOR BANKS ABRUPTLY SEIZED ITS CASH FORCING IT TO CLOSE ALL 283 COMPANYOWNED OUTLETS FRANCHISEES SAID THE COMPANY HADN'T BEEN ABLE TO SERVICE ITS BANK DEBT WHICH MR SCHILDHORN PUTS AT 46 MILLION IN ADDITION THE COMPANY OWES SUPPLIERS AND THE INTERNAL REVENUE SERVICE HE SAID THE CRISIS THREATENED THE OPERATIONS OF 857 NUTRI/SYSTEM FRANCHISED CENTERS WHICH REMAINED OPEN BECAUSE IT SHUT DOWN THE PIPELINE OF SPECIAL PREPACKAGED MEALS THAT THE FRANCHISEE CENTERS SELL TO CLIENTS ON THE NUTRI/SYSTEM WEIGHTLOSS PROGRAM MOST FRANCHISEES KEEP INVENTORY OF ONLY TWO WEEKS OF THE MEALS SOME HAVE HAD TO RATION THE SUPPLIES IN AN EFFORT TO RESTART SHIPMENT OF THE MEALS THE FRANCHISEE ORGANIZATION LAST MONDAY FILED A CHAPTER 7 BANKRUPTCY LIQUIDATION PETITION AGAINST THE COMPANY AND SOUGHT TO HAVE AN INTERIM TRUSTEE MANAGE THE COMPANY JUDGE SCHOLL GRANTED THE REQUEST FOR AN INTERIM TRUSTEE THURSDAY PROVIDED THAT AN AGREEMENT WITH POTENTIAL INVESTORS COULDN'T BE REACHED BY NOON FRIDAY MR HEISLEY SAID HE WILL BEGIN SHIPPING SUPPLIES AS SOON AS POSSIBLE EVEN AS EARLY AS THE WEEKEND BUT HE DECLINED TO SPECIFY HOW MUCH MONEY HIS GROUP WILL BE INVESTING IN NUTRI/SYSTEM SAYING THAT FUNDING WILL BE MADE AS THE NEED ARISES FRANCHISEES SAY NUTRI/SYSTEM NEEDS AN EMERGENCY TRANSFUSION OF AT LEAST 20 MILLION IN WORKING CAPITAL APART FROM INTERNAL ISSUES HEICO WILL HAVE TO BATTLE A SLEW OF NEGATIVE ADVERTISING BY NUTRI/SYSTEMS' WEIGHT LOSS RIVALS JENNY CRAIG INC AND WEIGHT WATCHERS A UNIT OF HJ HEINZ CO THE TWO COMPETITORS' ADS MENTION THE AILING DIET CHAIN BY NAME AND OFFER CUSTOMERS THE CHANCE TO SWITCH THEIR DIET PLANS ON FRIDAY NUTRI/SYSTEM'S CANADIAN OPERATIONS WHICH HAVE REMAINED OPEN FILED A LAWSUIT AGAINST JENNY CRAIG AND THREE AFFILIATES CHARGING DEFAMATION AND UNLAWFUL INTERFERENCE WITH NUTRI/SYSTEM CANADA'S BUSINESS INTERESTS MR HEISLEY'S INVESTOR GROUP HAD BEEN CLOSE TO REACHING AN AGREEMENT TO BUY NUTRI/SYSTEM WHEN THE BANK SEIZURE OCCURRED ACCORDING TO MR HEISLEY AND FRANCHISEES IN THE MARATHON NEGOTIATIONS THAT FOLLOWED A RIVAL GROUP JOINED FORCES WITH HEICO AS A MINORITY PARTNER MR HEISLEY SAID THE GROUP COMPRISES ARTHUR SPECTOR BRIAN O'NEILL AND IRA LUBERT WHOM HE IDENTIFIED ONLY AS PHILADELPHIA INVESTORS THE FIRST FIDELITY BANK UNIT OF FIRST FIDELITY BANCORP THE LEAD BANK LENDER HAS SO FAR REFUSED TO COMMENT ON THE CASE 9305100048 930510 BUSINESS BRIEF CIRRUS LOGIC INC SHAREHOLDERS SUE ALLEGING VIOLATIONS OF SECURITIES LAWS CIRRUS LOGIC INC SAID IT WAS SERVED WITH TWO SHAREHOLDER CLASSACTION LAWSUITS RELATED TO ITS ANNOUNCEMENT OF ITS FINANCIAL RESULTS FOR THE FISCAL FOURTH QUARTER ENDED MARCH 31 THE LAWSUITS FILED IN THE US DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA NAME THE FREMONT CALIF COMPANY AND SEVERAL OF ITS OFFICERS AND DIRECTORS AS DEFENDANTS THE SUITS ALLEGE VIOLATIONS OF FEDERAL SECURITIES LAWS IN RELATION TO CIRRUS'S ANNOUNCEMENT ON APRIL 26 OF ITS YEAREND RESULTS THE COMPANY SAID THE COMPUTERCHIP COMPANY REPORTED FOURTHQUARTER NET INCOME OF 25 MILLION OR 10 CENTS A SHARE ON REVENUE OF 1046 MILLION COMPARED WITH YEAREARLIER NET OF 4 MILLION OR 16 CENTS A SHARE ON REVENUE OF 576 MILLION FOR THE YEAR CIRRUS REPORTED NET OF 206 MILLION OR 81 CENTS A SHARE ON REVENUE OF 2176 MILLION COMPARED WITH NET OF 166 MILLION OR 68 CENTS A SHARE ON REVENUE OF 2176 MILLION IN FISCAL 1992 CIRRUS SAID IT BELIEVES THAT THE ALLEGATIONS ARE WITHOUT MERIT AND INTENDS TO VIGOROUSLY CONTEST THEM 9305100047 930510 BUSINESS BRIEF EASTERN ASSOCIATED COAL CORP POOR COAL PRICES ARE BLAMED FOR LAYOFF OF 270 EMPLOYEES EASTERN ASSOCIATED COAL CORP BLAMING SAGGING COAL PRICES SAID IT IS LAYING OFF 270 PEOPLE OR 12 OF ITS WORK FORCE THE CHARLESTON WVA COMPANY PLANNED TO LAY OFF 169 PRODUCTION EMPLOYEES EFFECTIVE SATURDAY INCLUDING 55 MINERS IN WEST VIRGINIA'S MONONGALIA COUNTY 46 IN RALEIGH COUNTY AND 68 IN BOONE COUNTY EASTERN SAID IT ALSO WILL LAY OFF ABOUT 60 SALARIED WORKERS LATER THIS MONTH AND IT PLANS TO CLOSE ITS ROBIN HOOD NO 9 MINE IN BOONE COUNTY IN EARLY JULY BECAUSE PRODUCTION COSTS OUTWEIGH MARKET PRICES FOR COAL EASTERN SAID THE MINE EMPLOYS 41 WORKERS EASTERN SAID ITS SELLS ABOUT TWOTHIRDS OF ITS 20 MILLION TONS A YEAR EITHER ON THE SPOT MARKET OR UNDER AGREEMENTS THAT ARE RENEWED ANNUALLY MAKING PRICES SENSITIVE TO MARKET CHANGES MARKET PRICES HAVE FALLEN FOR THE PAST THREE YEARS THE COMPANY SAID EASTERN IS A UNIT OF ST LOUISBASED PEABODY HOLDING CO WHICH IN TURN IS OWNED BY BRITAIN'S HANSON PLC 9305100045 930510 BUSINESS BRIEF UNIONFED FINANCIAL CORP LOSS WIDENED IN 3RD PERIOD RECEIVERSHIP DRAWS NEARER UNIONFED FINANCIAL CORP REPORTED A WIDENED LOSS OF 89 MILLION OR 120 A SHARE FOR THE FISCAL THIRD QUARTER AND SAID IT WAS CLOSER TO RECEIVERSHIP BECAUSE IT HAS FAILED TO MEET ITS FEDERALLY MANDATED CAPITAL TARGET THE LOSS FOR THE PERIOD ENDED MARCH 31 COMPARES WITH A LOSS OF 15 MILLION OR 19 CENTS A SHARE A YEAR EARLIER THE BREA CALIF THRIFT HOLDING COMPANY PARENT OF UNION FEDERAL BANK SAID THE LATEST LOSS RESULTED FROM LOAN AND REAL ESTATE LOSSES DRIVEN BY THE CONTINUING PROPERTY SLUMP IN SOUTHERN CALIFORNIA THAT TOTALED 122 MILLION UP FROM 72 MILLION A YEAR EARLIER THE COMPANY SAID IT WAS UNABLE TO MEET ITS CAPITAL TARGETS UNDER A PLAN ADOPTED LAST SEPTEMBER WITH THE OFFICE OF THRIFT SUPERVISION WHICH COULD APPOINT A CONSERVATOR AT ANY TIME BUT HAS WAIVED THE IMPOSITION OF OPERATING CONDITIONS CALLED FOR IN THE AGREEMENT THE BANK SAID IT NOW IS REQUIRED TO FILE A CAPITAL RESTORATION PLAN BY MAY 31 SPECIFYING WHAT STEPS IT WILL TAKE TO ACHIEVE COMPLIANCE UNDER THE AGREEMENT THE BANK WAS REQUIRED TO ACHIEVE A 4 CORE CAPITAL RATIO AND AN 8 RISKBASED CAPITAL RATIO AT MARCH 31 THE BANK'S CORE CAPITAL RATIO WAS 213 AND ITS RISKBASED CAPITAL RATIO WAS 428 CLASSIFYING IT AS SIGNIFICANTLY UNDERCAPITALIZED ONCE CORE CAPITALIZATION FALLS TO 2 THE INSTITUTION IS SUPPOSED TO BE PLACED IN RECEIVERSHIP 9305100044 930510 US TO QUESTION IRAQI SUSPECTS IN PLOT TO KILL BUSH TIE TO HUSSEIN IS SOUGHT BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US INVESTIGATORS IN KUWAIT EXPECT TO BEGIN INTERROGATIONS THIS WEEK OF IRAQIS PRISONERS SUSPECTED OF PLOTTING TO KILL FORMER PRESIDENT BUSH AND THE RESULTS WILL DETERMINE WHAT ACTIONS PRESIDENT CLINTON MIGHT TAKE AGAINST BAGHDAD FEDERAL BUREAU OF INVESTIGATION AGENTS WERE TO START QUESTIONING 16 PRISONERS INCLUDING 11 IRAQI NATIONALS EITHER YESTERDAY OR TODAY ACCORDING TO US OFFICIALS THEY WILL TRY TO DETERMINE WHETHER THE IRAQIS' MISSION SPECIFICALLY WAS TO ASSASSINATE MR BUSH THE US ALREADY IS REASONABLY CONVINCED THAT THE IRAQIS WERE DISPATCHED BY THEIR GOVERNMENT TO COMMIT ACTS OF TERRORISM AND SABOTAGE US OFFICIALS SAY IF THE US CONCLUDES THAT SADDAM HUSSEIN ORDERED THE KILLING OF A FORMER AMERICAN PRESIDENT THERE COULD BE A FORCEFUL RESPONSE AGAINST BAGHDAD IF WE DETERMINE IRAQ WAS INVOLVED IN STATESPONSORED TERRORISM THE UNITED STATES WILL TAKE APPROPRIATE ACTION AGAINST IRAQ GEORGE STEPHANOPOULOS THE WHITE HOUSE COMMUNICATIONS DIRECTOR SAID OVER THE WEEKEND THE CLINTON ADMINISTRATION ALSO IS CONSIDERING WHETHER TO ASK KUWAIT TO PERMIT THE SUSPECTS TO BE TRIED IN THE US THE IRAQI ISSUE WAS DISCUSSED BRIEFLY OVER THE WEEKEND BY PRESIDENT CLINTON AND HIS SENIOR ADVISERS DURING A MEETING THAT WAS DEVOTED MOSTLY TO BOSNIA FORMER PRESIDENT BUSH AND SEVERAL TOP OFFICIALS FROM HIS ADMINISTRATION WERE IN KUWAIT APRIL 14 TO 16 TO CELEBRATE THE ALLIED VICTORY IN THE PERSIAN GULF WAR WHICH RESULTED IN THE LIBERATION OF KUWAIT FROM IRAQI OCCUPATION DURING AND AFTER THE VISIT KUWAITI AUTHORITIES ARRESTED 16 PEOPLE ARMED WITH EXPLOSIVES AND OTHER EQUIPMENT AND HAVE SINCE CHARGED THEM WITH CONSPIRACY TO KILL MR BUSH AND COMMIT OTHER VIOLENT ACTS US OFFICIALS CONFIRMING AN INITIAL REPORT SATURDAY IN THE WASHINGTON POST SAID THAT ABOUT 550 POUNDS OF EXPLOSIVES WERE TRANSPORTED ACROSS THE BORDER IN TWO CARS WITH KUWAITI LICENSE TAGS THAT HAD BEEN STOLEN BY IRAQIS DURING THE OCCUPATION KUWAITI AUTHORITIES SAY THEY ALSO DISCOVERED A SOPHISTICATED CAR BOMB THE KUWAITIS CLAIM THAT ONE OF THE MEN THEY HAVE TAKEN PRISONER CONFESSED DURING INTERROGATION BY KUWAITIS TO BEING A COLONEL IN THE IRAQI SECRET SERVICE THE IRAQIS NEVER CAME CLOSE TO MR BUSH KUWAITI AUTHORITIES SAY THAT THE PLOTTERS PLANNED THREE EFFORTS IF NECESSARY TO KILL MR BUSH THESE INCLUDED USING THE REMOTECONTROL CAR BOMB WHEN MR BUSH ARRIVED AT THE KUWAITI AIRPORT A SECOND CAR BOMB ATTEMPT NEAR WHERE MR BUSH RECEIVED AN HONORARY DEGREE AND A SUICIDEBOMBER ATTEMPT A US OFFICIAL SAID YESTERDAY THAT MR BUSH WASN'T AWARE THAT THE IRAQIS HAD BEEN ARRESTED DURING HIS VISIT NOR THAT KUWAITIS WERE SUSPICIOUS OF AN ASSASSINATION ATTEMPT US OFFICIALS SAID THEY WEREN'T SURE HOW LONG IT WOULD TAKE THE US INVESTIGATORS IN KUWAIT TO CONCLUDE THEIR INTERVIEWS WITH THE PRISONERS BUT ONCE THAT WORK IS FINISHED A DECISION ON HOW TO RESPOND WOULD BE MADE BY PRESIDENT CLINTON WHO CURRENTLY IS PREOCCUPIED WITH WORKING WITH US ALLIES TO FIND A WAY TO RESPOND TO THE CIVIL WAR IN BOSNIA THE PRISONERS IN KUWAIT INCLUDE FIVE KUWAITI RESIDENTS OF IRAQI ORIGIN AND 11 IRAQIS ONE OTHER SUSPECT IS BEING SOUGHT 9305100043 930510 TECHNOLOGY BRIEF ULSI SYSTEMS INC PATENT TRADESECRET SUITS ARE SETTLED WITH INTEL CORP ULSI SYSTEMS INC SAN JOSE CALIF SAID IT SETTLED PATENT AND TRADESECRET LAWSUITS WITH INTEL CORP CLEARING THE WAY FOR IT TO SELL ITS VERSION OF A MICROCHIP THE BIG CHIP MAKER SUED FOUR YEARS AGO CLAIMING THE ULSI CLONE A SOCALLED MATH COPROCESSOR THAT SPEEDS UP CALCULATIONS IN PERSONAL COMPUTERS ILLEGALLY USED AN INTEL PATENT INTEL'S GENERAL COUNSEL TOM DUNLAP SAID TWO REDESIGNS OF THE CHIP HAVE REMOVED THAT CONCERN CLOSELY HELD ULSI SAID THE SETTLEMENT DOESN'T IMPOSE ANY RESTRICTIONS ON ITS SELLING OF THE CHIP A CRIMINAL CASE IN CALIFORNIA IS STILL PENDING OVER THE ALLEGED STEALING OF TRADE SECRETS INVOLVED 9305100042 930510 MEDIA ABC BELIEVES IT HAS MADE PERFECT EVENT' BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE YEAR 2007 AS ABC'S COMING SERIES WILD PALMS ENVISIONS IT ONE MAN IS ATTEMPTING TO TAKE OVER THE WORLD USING NETWORK TELEVISION THAT MAY BE WISHFUL THINKING WITH A TECHNOLOGY REVOLUTION AND 500CHANNEL CABLE SYSTEMS ON THE WAY BROADCAST NETWORKS WILL FIND IT HARD JUST TO STAY COMPETITIVE IN THE NEXT DECADE THE RISKIEST NETWORK EFFORT TO DATE IN THE ESCALATING BATTLE FOR TV VIEWERS IS WILD PALMS A SIXHOUR CYBERPUNK NIGHTMARE VISION OF THE FUTURE THAT AIRS MAY 1619 WILD PALMS WHICH IS BEING DUBBED AN EVENT SERIES INSTEAD OF A PLAIN OLD MINISERIES ATTEMPTS TO CAPITALIZE ON THE LATEST FAD IN NETWORK TV CREATING HIGHPROFILE EVENTS SUCH AS MICHAEL JACKSON'S TALK WITH OPRAH WINFREY WITH ENOUGH ADVANCE BUZZ SUCH PROGRAMS ARE MEANT TO LURE BIG AUDIENCES AND AVOID THE PROBLEMS OF VIEWER EROSION THAT HAVE PLAGUED THE NETWORKS' REGULAR SERIES IN RECENT YEARS WILD PALMS HAS PLENTY OF ADVANCE BUZZ GOING FOR IT THE SERIES IS THE FIRST TV PROJECT FROM FILM DIRECTOR OLIVER STONE PLATOON JFK ABC A UNIT OF CAPITAL CITIES/ABC INC FIRST SCREENED PART OF THE PROGRAM FOR THE CONSUMER PRESS IN DECEMBER GARNERING SOME POSITIVE FEATURE ARTICLES THE FIRST PROMOTIONAL SPOT AIRED UNUSUALLY EARLY DURING THE MARCH 29 ACADEMY AWARDS TO TAKE ADVANTAGE OF THE AUDIENCE THAT KNEW MR STONE'S WORK STREET POSTERS BEARING THE PROVOCATIVE LOGO A PALM TREE TATTOOED ACROSS THE LENGTH OF A WOMAN'S BACK WERE PLASTERED AROUND MAJOR CITIES BOOKSTORES WERE GIVEN A DISPLAY STAND TO PROMOTE BOTH THE SERIES AND A TIEIN BOOK AND ABC WRAPPED THREE OF ITS MAY PROJECTS INCLUDING WILD PALMS TOGETHER INTO A LENGTHY PROMOTIONAL SPOT THAT AIRED THROUGHOUT APRIL IN WILD PALMS ABC HAS FOUND WHAT IT THINKS IS THE PERFECT PROJECT TO EXTEND THE EVENT CONCEPT OVER SEVERAL NIGHTS THE SERIES WHICH ABC DESCRIBES AS A HALLUCINATORY SOAP OPERA STARTED LIFE AS A COMIC STRIP IN HIP FASHION MAGAZINE DETAILS CREATED BY SCREENWRITER AND NOVELIST BRUCE WAGNER ONCE YOU CREATE A WORLD YOU'RE WITHIN THAT WORLD AND THE WORLD SPAWNS WORLDS OF ITS OWN AND IT BECOMES HERMETICALLY SEALED MR WAGNER SAYS BY WAY OF AN EXPLANATION FOR HOW HE CAME UP WITH THE REST OF THE TWISTED STORY MR STONE AND MR WAGNER ARE THE EXECUTIVE PRODUCERS OF THE SHOW IN THE FIRST EPISODE OF WILD PALMS A CHARACTER NAMED HARRY WYCKOFF PLAYED BY JAMES BELUSHI GETS A JOB AT A TV NETWORK THAT IS ABOUT TO LAUNCH VIRTUAL REALITY TECHNOLOGY TO VIEWERS THE PROCESS CONVERTS TELEVISION TRANSMISSIONS INTO THREEDIMENSIONAL HOLOGRAPH PROGRAMS BEAMED INTO PEOPLE'S LIVING ROOMS BUT THE TECHNOLOGY BLURS THE LINE BETWEEN ILLUSION AND REALITY AND THE EVIL SENATOR WHO OWNS THE NETWORK ROBERT LOGGIA TRIES TO USE IT FOR POLITICAL DOMINATION THE CAST INCLUDES OTHER SUCH WELLKNOWN PERFORMERS AS CHINA BEACH STAR DANA DELANY PLAYING HARRY WYCKOFF'S WIFE ANGIE DICKINSON AS HER DEMONIC VENGEFUL MOTHER AND KIM CATTRALL AS HARRY'S EXGIRLFRIEND AS TWO CULTS BATTLE IT OUT RHINOCEROSES KEEP REAPPEARING AND CHARACTERS ARE RARELY WHO THEY APPEAR TO BE THE PREMISE AND THE VISUALLY STUNNING PRODUCTION OF WILD PALMS ARE EVEN STRANGER THAN THE 1990 SERIES TWIN PEAKS ABC'S LAST BIG ATTEMPT AT WALKING THE CUTTING EDGE OF PROGRAMMING THAT SERIES ABOUT A BIZARRE NORTHWESTERN TOWN BOILING WITH INTRIGUE AND MURDER DREW A CULT FOLLOWING AND HAD AMERICA WONDERING WHO KILLED LAURA PALMER BUT VIEWERS QUICKLY GOT DISILLUSIONED WHEN THE STORY DRAGGED ON AND ABC WASTED MILLIONS ON A SECOND SEASON THAT FEW WATCHED WILD PALMS WAS BORN OUT OF THE NOTION THAT WE REALLY COULD HAVE MADE SOMETHING OUT OF TWIN PEAKS' IF ONLY WE'D KNOWN IT WAS A LIMITED SERIES RATHER THAN A REGULAR SERIES SAYS ROBERT IGER ABC TELEVISION NETWORK GROUP'S PRESIDENT THERE ARE PROJECTS THAT WE END UP PUTTING UNDER UNDUE STRESS EXPECTING THEM TO SUSTAIN THEMSELVES WEEK AFTER WEEK SEASON AFTER SEASON WHILE REGULAR SERIES PROGRAMMING WILL REMAIN OUR BREAD AND BUTTER MR IGER SAYS EVENT PROGRAMS IF THE NETWORK CAN KEEP DREAMING THEM UP HELP FOCUS ATTENTION ON THE BUSINESS AND THE NETWORK AND GRAB BACK SOME OF THE OPPORTUNITIES THAT HAVE BEEN CEDED TO CABLE THE HARD PART OF COURSE WILL BE CONTINUING TO COME UP WITH EVENT SHOWS AND SERIES THAT CONTINUE TO PIQUE VIEWER INTEREST ABC HAS TAKEN PAINS TO MINIMIZE ITS RISKS WITH WILD PALMS THOUGH THE SERIES HAD A SLIGHTLY ABOVEAVERAGE BUDGET OF MORE THAN 10 MILLION IT WAS PRODUCED INHOUSE UNDER ABC'S NEW GREENGRASS PRODUCTIONS INC LABEL AND ABC KEPT INTERNATIONAL DISTRIBUTION RIGHTS AT LEAST HALF THE PRODUCTION COSTS WILL BE COVERED BY SALES TO FOREIGN BROADCASTERS WITH MORE THAN 40 COUNTRIES ALREADY SIGNED ON IT'S THE BIGGEST TELEVISION ENTERTAINMENT PROPERTY WE'VE EVER HANDLED SAYS JOSEPH ABRAMS PRESIDENT OF ABC DISTRIBUTION CO WHO PINS THE EXTRAORDINARY INTEREST ON MR STONE'S INVOLVEMENT AGREES MR IGER BEING ABLE TO SAY OLIVER STONE PRESENTS WILD PALMS' WAS A SIGNIFICANT INGREDIENT HERE FURTHER MINIMIZING THE FINANCIAL RISK ABC GETS REVENUE FROM THE CAPITOL RECORDS SOUNDTRACK AND A WILD PALMS READER FROM ST MARTIN'S PRESS ABC HOME VIDEO WILL SELL CASSETTES OF THE PROGRAM THE CREATIVE RISKS ARE STILL HIGH FOR THIS PROGRAM AS INTRIGUING AND UNUSUAL AS THE SHOW IS IF VIEWERS FIND THE FIRST TWOHOUR INSTALLMENT SLOW GOING THEY MIGHT NOT COME BACK FOR THE NEXT THREE PARTS WHEN MR IGER FIRST CONCEIVED OF EVENT SERIES HE WANTED THEM TO RUN ONCE A WEEK FOR SIX WEEKS BUT WILD PALMS IS SLOW WITH MUCH OF THE EXCITEMENT IN THE FINAL THREE HOURS SO THE NETWORK SCHEDULED IT ALL IN ONE WEEK ALTHOUGH HE INSISTS WILD PALMS WON'T BE A FAILURE MR IGER SAYS THE RISK IS WORTHWHILE FROM A PROGRAMMER'S STANDPOINT THERE IS ALWAYS SOMETHING TO BE GAINED FROM SHEER RISKTAKING HE SAYS MR STONE SHRUGS OFF CONCERNS THAT THE SLOW PACE OF WILD PALMS WILL NOT HOLD AN AUDIENCE WITH A TVSHORTENED ATTENTION SPAN MR STONE CALLS IT A WHACKEDOUT DYNASTY' REFERRING TO THE ABC NIGHTTIME SOAP MY FATE IS NOT RIDING ON THE OUTCOME HE ADDS WE DID THE BEST WE COULD WHO KNOWS WHAT THE APPETITE WILL BE IN FACT ABC'S LURE TO GET MR STONE AND MR WAGNER TO WORK IN THE MEDIUM WAS A PROMISE OF FREEDOM TO DO WHAT THEY WANTED WHETHER IT MET THE DEMANDS OF TELEVISION OR NOT MR STONE SAYS HE TOLD ABC HE HAD NO DESIRE TO GO THROUGH THE TV GRIND I'VE SEEN PEOPLE WHO DO THAT AND THEY GET CHEWED UP THEY'RE PRETTY SICKLY THEY GET TIRED THEY'RE ALWAYS RUNNING TO KEEP IN PLACE ABC'S ONLY CONCERN SAYS MR WAGNER WAS THAT THE SHOW REMAIN COHERENT MR WAGNER IS ALREADY AT WORK ON ANOTHER EVENT SERIES THIS ONE WITH FRANCIS FORD COPPOLA CALLED CUL DE SAC IT IS A LOOK AT THE LAST SIX MONTHS OF 1959 AND THE PREMISE OF WILD PALMS MIGHT NOT BE AS FAR OUT AS IT SOUNDS MR WAGNER'S VISION OF PROJECTABLE THREEDIMENSIONAL HOLOGRAMS A TV SHOW THAT TAKES PLACE ON THE COUCH RIGHT NEXT TO THE VIEWER FOR EXAMPLE IS CURRENTLY IMPOSSIBLE ADMITS THE SHOW'S TECHNICAL CONSULTANT BRENDA LAUREL A RESEARCH SCIENTIST AT INTERVAL RESEARCH CORP IN PALO ALTO CALIF BUT A TECHNOLOGICAL BREAKTHROUGH ALLOWING PROJECTABLE HOLOGRAMS COULD OCCUR BY 2007 SHE SAYS FIFTEEN YEARS IS TOO FAR TO PREDICT ANYTHING IT USED TO TAKE 10 YEARS FOR A NEW TECHNOLOGY TO GET OUT OF THE LAB AND INTO THE MARKETPLACE BUT THAT LOOP IS CLOSING 9305100041 930510 CORRECTIONS & AMPLIFICATIONS NORTHROP CORP OFFERED TO PAY INTERNATIONAL PAPER CORP 12 MILLION IF IT BOUGHT A FINNISH MACHINE INSTEAD OF A US ONE THE OFFER WAS MADE EARLIER THIS YEAR AS PART OF AN OFFSET AGREEMENT WITH FINLAND WHICH IS BUYING JET FIGHTERS THAT NORTHROP HELPS PRODUCE AN ARTICLE FRIDAY INCORRECTLY SAID THE 12 MILLION WOULD HAVE BEEN PAID DIRECTLY TO A FINNISH MACHINE MAKER 9305100039 930510 CHIEFS OF IBM MICROSOFT CORP PLAN TO MEET GERSTNER GATES TO DISCUSS A BROADENING OF TIES BETWEEN THE TWO FIRMS BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL WILLIAM H GATES CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MICROSOFT CORP PLANS TO MEET WITH INTERNATIONAL BUSINESS MACHINES CORP'S NEW CHIEF EXECUTIVE LOUIS GERSTNER TO DISCUSS A BROADENING OF TIES BETWEEN THE TWO COMPUTERINDUSTRY POWERHOUSES MR GATES WHO HAS NEVER MET MR GERSTNER CONFIRMED A MEETING FOR LATER THIS MONTH WAS IN THE OFFING BUT PLAYED DOWN ITS IMPORTANCE I WOULDN'T MAKE ANY BIG DEAL ABOUT IT HE SAID THOUGH HE NOTED THAT HE LOOKED FORWARD TO SHARING WITH MR GERSTNER MY THOUGHTS ON HOW I SEE THE INDUSTRY PLANS FOR THE MEETING BETWEEN MR GATES CONSIDERED THE MOST POWERFUL FIGURE IN THE COMPUTER INDUSTRY AND MR GERSTNER A HIGHTECH NOVICE WHO ASSUMED HIS POST LAST MONTH COME AMID SIGNS THAT A MICROSOFTIBM RECONCILIATION IS INCREASINGLY POSSIBLE ONCE THE CLOSEST OF ALLIES THE TWO COMPANIES WHO DEFINED THE STANDARD FOR PERSONAL COMPUTERS IN THE EARLY 1980S HAVE BEEN PUBLICLY AT ODDS FOR MORE THAN A YEAR THE DIFFERENCES MAINLY HAVE TO DO WITH IBM'S BACKING OF THE OS/2 OPERATING SYSTEM WHICH MICROSOFT HELPED TO DEVELOP BUT ESSENTIALLY ABANDONED TWO YEARS AGO IN FAVOR OF ITS POPULAR WINDOWS PROGRAM AND FORTHCOMING NT SOFTWARE BUT THE ARRIVAL OF MR GERSTNER CREATES AN OPPORTUNITY FOR A DECIDED WARMING IN RELATIONS BETWEEN IBM AND MICROSOFT IBM DECLINED TO COMMENT ON THE MEETING MR GATES HOWEVER SAID HE THINKS MICROSOFT CAN BE COMPLEMENTARY WITH IBM BY WORKING TOGETHER ON SPECIFIC GOALS SUCH AS MAKING IT EASIER TO CREATE MULTIMEDIA PCS AND CREATING NEW PLATFORMS THAT TAKE ADVANTAGE OF HANDWRITING RECOGNITION AND MOBILE COMMUNICATION THE REASONS FOR OPTIMISM ABOUT AN IBMMICROSOFT ALLIANCE ARE CLEAR UNDER MR GERSTNER'S PREDECESSOR JOHN AKERS IBM HAD COME TO VIEW MICROSOFT AS AN ALLCONSUMING BUSINESS NEMESIS WITH THE KIND OF ADVERSARIAL FEROCITY IBM EXECUTIVES ONCE RESERVED FOR THE JAPANESE COMPUTER INDUSTRY MR GERSTNER'S APPOINTMENT AND THE NEWLY ANNOUNCED RETIREMENT PLANS OF IBM'S TOP OLDGUARD TECHNOLOGY STRATEGIST JACK KUEHLER PAVES THE WAY FOR THE TWO COMPANIES TO MAKE A FRESH START IBM'S MOTIVATION FOR SEEKING A CLOSER RELATIONSHIP WITH MICROSOFT ISN'T SIMPLY TO BURY OLD FEUDS IBM MAY WISH TO COUNTER MOVES BY COMPETITORS COMPAQ COMPUTER CORP AND DIGITAL EQUIPMENT CORP WHICH HAVE FORGED TIGHTER ALLIANCES WITH MICROSOFT OVER THE PAST YEAR ANOTHER FORCE PUSHING THE TWO COMPANIES CLOSER TOGETHER IS THE NEW LATITUDE GIVEN IBM DIVISIONS DESPITE THE FACT THAT IBM'S SYSTEMSOFTWARE DIVISION IS PUSHING OS/2 OTHER IBM DIVISIONS ARE GIVING A BOOST TO WINDOWS AND NT WIDELY SEEN AS OS/2'S CHIEF RIVALS RECENTLY IBM HAS TAKEN TWO IMPORTANT STEPS TO BOOST THE PROSPECTS OF MICROSOFT'S FORTHCOMING NT SOFTWARE WHICH IS DESIGNED TO ACCELERATE THE SHIFT FROM IBM'S SPECIALTY MAINFRAME COMPUTERS TO NETWORKS OF PCS WHERE IBM IS FAR FROM DOMINANT IBM PLANS TO OFFER NT ALONG WITH ITS SUPER SERVER COMPUTERS THE ARMONK NY COMPANY ALSO HAS AGREED TO CREATE AN NT VERSION OF ITS PRINCIPAL DATABASE PROGRAM A MAJOR ATTRACTION TO ITS MAINFRAME CUSTOMERS AND IBM HAS BEEN GROWING MORE AGGRESSIVE ABOUT OFFERING MICROSOFT'S WINDOWS OPERATING SYSTEM WITH ITS BOTTOMOFTHELINE PCS THE PS/1 HOME MACHINE AND THE VALUEPOINT CLONEBUSTER ALSO THERE IS MR GATES'S INVOLVEMENT IN THE REFORM OF IBM WHICH IS IN SERIOUS TROUBLE AFTER DECADES OF SUSTAINED GROWTH AFTER MR AKERS ANNOUNCED HIS RESIGNATION IN JANUARY BIG BLUE'S DIRECTORS APPROACHED MR GATES TO SOUND OUT HIS INTEREST IN SUCCEEDING MR AKERS MR GATES IMMEDIATELY SAID HE WASN'T INTERESTED IN THE IBM JOB BUT DID ADVISE IBM INFORMALLY ON NEW DIRECTIONS FOR IBM AND THE SELECTION OF A NEW CHIEF EXECUTIVE THE RELIANCE ON MR GATES BELIES THE NOTION THAT THE TWO COMPANIES DESPITE THE MUCHPUBLICIZED BREAKUP OF THEIR PC SOFTWARE PARTNERSHIP EVER WERE TOTALLY AT ODDS IBM HAS ALWAYS KEPT NUMEROUS LINES OF COOPERATION OPEN WITH MICROSOFT BUT THESE TIES WERE JUST OVERSHADOWED BY THE BETTERPUBLICIZED CONTROVERSIES ON THE OPERATINGSYSTEM FRONT SAID PAUL BERGEVIN AN IBM SPOKESMAN NEVERTHELESS SOME REAL DIFFERENCES BETWEEN THE TWO COMPANIES REMAIN ESPECIALLY REGARDING SYSTEM SOFTWARE FOR PCS THIS IS MICROSOFT'S CORE BUSINESS AND MR GATES VIEWS IBM'S PERSONAL SOFTWARE GROUP WHICH PUSHES OS/2 AS A COMPETITOR AND THAT RIVALRY IS POISED TO DEEPEN IN SEPTEMBER THE TWO COMPANIES END THEIR LONGSTANDING PRACTICE OF EXCHANGING PC OPERATING SYSTEMS CODES UNDER DEVELOPMENT MICROSOFT OF REDMOND WASH HAS BEEN GIVING IBM ITS LATEST WINDOWS WORKINPROGRESS WHILE IBM HAS DONE THE SAME WITH OS/2 THE END OF THE EXCHANGE SETS THE STAGE FOR EVEN MORE INTENSE COMPETITION IN PC OPERATING SOFTWARE WITH IBM VOWING TO KEEP THE HEAT ON MICROSOFT IS BEGINNING TO UNDERSTAND OS/2 IS NOT A FLASH IN THE PAN SAID LEE REISWIG WHO RUNS IBM'S PERSONAL SOFTWARE DIVISION WE'RE NOT GOING AWAY MICHAEL W MILLER CONTRIBUTED TO THIS ARTICLE 9305100038 930510 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION APPLE COMPUTER INC A SHELF OFFERING OF UP TO 500 MILLION OF DEBT SECURITIES COMMON STOCK AND WARRANTS CARDINAL DISTRIBUTION INC A SHELF OFFERING OF UP TO 150 MILLION PRINCIPAL AMOUNT OF ITS DEBT SECURITIES INSITUFORM TECHNOLOGIES INC AN OFFERING OF 3250000 SHARES OF COMMON STOCK VIA DEAN WITTER REYNOLDS INC LONE STAR STEAKHOUSE & SALOON INC AN OFFERING OF FIVE MILLION COMMON SHARES VIA MONTGOMERY SECURITIES STECKVAUGHN PUBLISHING CORP A SUBSIDIARY OF NATIONAL EDUCATION CORP AN INITIAL OFFERING OF 23 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO AND HAMBRECHT & QUIST INC 9305100037 930510 INTERNATIONAL PASSPORT BUSINESS PROSPERS IN YUGOSLAVIA AS ECONOMY SINKS SANCTIONSBUSTING OPERATION THRIVES BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BELGRADE YUGOSLAVIA DRAGAN ANDRIC AND DRAGANA SEDAK FED UP WITH THE ECONOMIC RUIN AND INTERNATIONAL ISOLATION OF THEIR COUNTRY WANT TO GO TO AUSTRALIA BUT THEY CARRY PASSPORTS FROM THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA WHICH DOESN'T EXIST ANYMORE AND FROM THE REPUBLIC OF SERBIA WHICH ISN'T EVEN A COUNTRY THE AUSTRALIAN EMBASSY IN BELGRADE WON'T STAMP A VISA IN EITHER ONE OF THE PASSPORTS WHAT TO DO BELIZE BLURTS STANKO KUSTRIN AN IMPISH MAN IN HIS MID30S WHO SPECIALIZES IN NAVIGATING PEOPLE THROUGH SANCTIONS' LOOPHOLES IF YOU WANT TO SET UP AN OFFSHORE COMPANY OR GET A SECOND PASSPORT MR KUSTRIN IS THE MAN TO COME TO OR AT LEAST HE SAYS HE IS BELIZE AND PERU HAVE THE WIDEST RANGE OF ACCESS TO COUNTRIES WITHOUT NEEDING A VISA HE TELLS THE PAIR WITH A BELIZE PASSPORT YOU CAN TRAVEL TO AUSTRALIA IT WILL COST 50000 THAT'S A LOT OF DINARS PARTICULARLY FOR MS SEDAK WHO LOST HER JOB AT YUGOSLAVIAN AIRLINES WHEN ITS LANDING RIGHTS WERE TAKEN AWAY AROUND THE WORLD BELIZE SHE SAYS WISTFULLY TRYING TO LOCATE THE TINY CENTRAL AMERICAN COUNTRY ON A MAP HANGING ABOVE MR KUSTRIN'S HEAD I'VE HEARD IT IS NEAR CUBA BUT FRIENDLIER AND ADDS MR KUSTRIN THEY SPEAK ENGLISH THERE IT'S TRUE CERTAINLY THE ENGLISH BIT AND THE PASSPORT PART TOO AT LEAST UNTIL 1989 THEN THE BELIZE GOVERNMENT COLLAPSED MAINLY FROM OPPOSITION CHARGES THAT BELIZE PASSPORTS WERE BEING CHEAPENED THROUGH THE SCHEME TO PAY OFF BELIZE'S DEBT BY SELLING CITIZENSHIPS THE FIRST ACT OF THE NEW GOVERNMENT WAS TO ABOLISH THE PLAN WE DON'T WANT OUR PASSPORTS TO BE USED ONLY FOR CONVENIENCE SNIFFS ROBERT LESLIE BELIZE'S HIGH COMMISSIONER IN LONDON NO MATTER MR KUSTRIN HAS THOUGHT OF A CHEAPER WAY GO TO FIJI ON A TOURIST VISA STAY FOR THREE MONTHS AND THEN YOU GET A VISA FOR AUSTRALIA EVEN WITH A YUGOSLAV PASSPORT IN FIJI YOU CAN GET A BEACH BUNGALOW FOR 180 A MONTH IT'S CHEAP ONCE YOU'RE IN SYDNEY GO TO A LAWYER'S OFFICE AND APPLY FOR PERMANENT RESIDENCE THERE WILL BE A LOT OF PAPERWORK BUT YOU CAN DO IT MONEY PAPERWORK MS SEDAK AND MR ANDRIC ARE INSPIRED TO DO WHATEVER IT TAKES THERE IS NO FUTURE HERE HE SAYS IN THE SANCTIONSBUSTING ARENA WHERE THERE'S A WILL THERE'S A WAY THROUGHOUT THE DAY A STEADY STREAM OF DESPERATE SERBS WANDER INTO MR KUSTRIN'S NUMEROUS OFFICES AROUND TOWN INCLUDING ONE ON GEORGE WASHINGTON STREET IN MOST PLACES SECOND PASSPORTS AND OFFSHORE COMPANIES ARE THINGS ONLY TO BE WHISPERED ABOUT IN BELGRADE MR KUSTRIN TRUMPETS HIS TRADE IN A TELEVISION AD SPICED WITH ALLURING CARIBBEAN MUSIC HE OFFERS SERBS THE WORLD LITERALLY BUSINESS IS GOOD SAYS MR KUSTRIN SMILING BROADLY THIS IS THE RIGHT TIME FOR A RIGHT IDEA IN A LAND WHERE INFLATION IS DIZZYING AND UNEMPLOYMENT DEPRESSING HE IS ONE OF THE FEW WHO IS SMILING YUGOSLAV PRESIDENT DOBRICA COSIC SNARLS THAT SANCTIONS HAVE TURNED HIS COUNTRY INTO A CONCENTRATION CAMP EVEN SERBIAN PRESIDENT SLOBODAN MILOSEVIC WHOSE NATIONALIST AMBITIONS PROMPTED THE SANCTIONS IS CAUGHT BY CUTTING OFF SUPPLIES TO THE BOSNIAN SERBS HE IS HOPING TO WIN A REPRIEVE FROM AN INTERNATIONAL COMMUNITY DESPERATE TO SEE AN END TO THE WAR IN BOSNIAHERZEGOVINA SINCE LAST MONTH'S UNITED NATIONS' ACTION SEALING THE BORDERS TO COMMERCIAL TRANSPORT VERY LITTLE IS GETTING INTO OR OUT OF YUGOSLAVIA INTERNATIONAL MONITORS RING THE COUNTRY LIKE PRISON GUARDS ON THE ROMANIAN SIDE OF THE DANUBE RIVER FOR INSTANCE THREE AUSTRIAN AND TWO GERMAN CUSTOMS OFFICERS PEER DOWN AT YUGOSLAVIA FROM THE PORCH OF ONE OF NICOLAE CEAUSESCU'S MANSIONS THE ROMANIAN DICTATOR BUILT THIS PERCH ON A WOODED CLIFF SO HE COULD MARVEL AT THE DAM AND LOCKS BELOW HE STAYED ONLY ONCE NOW THE CUSTOMS OFFICERS UNDER THE AEGIS OF THE UN ARE ON DUTY AROUND THE CLOCK OBSERVING THE WORK OF THE ROMANIAN BORDER POLICE AND MAKING SURE THE ONLY BOATS ON THE DANUBE ARE CARRYING PROPER UN PAPERS TO TRAVEL THROUGH SERBIA SURE THERE'S SOME SMUGGLING SAY THE MONITORS BUT ONLY BY ROMANIANS WHO DRIVE ACROSS THE BORDER IN THEIR CARS SIPHON THE GAS OUT OF THE TANKS AND SELL IT TO SERBS FOR FIVE TIMES THE PRICE YOU CAN'T SUPPLY AN ENTIRE COUNTRY FROM THE TANK OF A CAR SAYS AUSTRIAN FRANZ ROECKLINGER WHO OCCUPIES A ROOM WHERE ELENA CEAUSESCU THE DICTATOR'S WIFE ONCE SLEPT MR ROECKLINGER'S SUCCESS FEEDS MR KUSTRIN'S SUCCESS THE HARDER IT IS FOR SERBS TO DO BUSINESS IN SERBIA THE MORE THEY WANT TO GET OUT I'M HERE TO CHANGE MY ADDRESS SAYS STANOJE ZIVKOVIC SETTLING INTO A CHAIR AT THE FOOT OF MR KUSTRIN'S DESK MR ZIVKOVIC RUNS A CLOTHING OUTLET NEAR BELGRADE THAT RELIES HEAVILY ON IMPORTS HE USED TO PICK UP THE GOODS HIMSELF EVERY MONTH DRIVING HIS OWN TRUCK THROUGH EUROPE NOW HE'S STUCK HERE WITH AN EMPTY STORE MR KUSTRIN KNOWS THE FEELING LAST YEAR HE BOUGHT 47000 OF MACHINES FROM THE US FOR HIS DIECASTING COMPANY BUT BY THE TIME THE GOODS WERE READY TO BE SHIPPED THE FIRST BOUT OF SANCTIONS HAD HIT PREVENTING AMERICAN COMPANIES FROM DOING BUSINESS IN YUGOSLAVIA SCRAMBLING AROUND THE WORLD FOR ANSWERS HE DEVISED THIS SCHEME HE SET UP AN OFFSHORE COMPANY IN IRELAND AND HAD HIS GOODS SHIPPED TO BULGARIA FROM THERE HE GOT DOCUMENTS SAYING THE GOODS WERE BEING SHIPPED THROUGH SERBIA EN ROUTE TO IRELAND THIS WAS WHEN PASSAGE THROUGH SERBIA WAS STILL ALLOWED HE EVEN HAD THE NECESSARY FREIGHT INSURANCE FROM LLOYDS OF LONDON HE WROTE LLOYDS A LETTER SAYING THAT IF THE GOODS WERE STOLEN HE WOULDN'T FILE A CLAIM LO AND BEHOLD THE GOODS WERE STOLEN IN SERBIA BY MR KUSTRIN I STOLE FROM MYSELF HE LAUGHS ONCE WE DID THAT WE LEARNED HOW TO DO IT IT'S EASY NOT ANY MORE UNDER THE INTENSIFIED UN SANCTIONS WHICH IS WHY IN NOVEMBER MR KUSTRIN BRANCHED OUT INTO THE PASSPORT BUSINESS ACCUMULATING INFORMATION ON WHICH COUNTRIES OFFER INVESTMENT PASSPORT OPPORTUNITIES THEN HE STARTED A FAR EAST DATABASE LISTING THE OFFSHOREREGISTRATION POSSIBILITIES IN ASIA MORE OFTEN THAN NOT HE SOUNDS LIKE A TRAVEL AGENT TUVALU VANUATU KIRIBATI HE SAYS THEY ARE GOOD PLACES TO REGISTER A BUSINESS NOT NECESSARILY TO LIVE HE PONDERS THIS LAST STATEMENT HEY THEY ARE ALSO GOOD PLACES TO LIVE THERE'S NOTHING TO DO BUT FISH AND SUNBATHE MILAN MILOSEVIC WHO IS NO RELATION TO THE SERBIAN PRESIDENT DOESN'T WANT TO FISH OR SUNBATHE AN AMBITIOUS 28YEAROLD HE WANTS TO MAKE MONEY ANYWHERE HE AND HIS BROTHERINLAW USED TO RUN A WHOLESALE BUSINESS SELLING VARIOUS GOODS IMPORTED FROM WESTERN EUROPE SANCTIONS PUT AN END TO THAT HE WENT TO THE AMERICAN EMBASSY IN BELGRADE HOPING FOR A VISA JUST TO LOOK AROUND THE US HE SAYS MAYBE GET SOME BUSINESS IDEAS TWO YEARS AGO THE EMBASSY GAVE HIM A VISA NOW NOTHING AT THE DEPTHS OF DESPAIR HE CAME ACROSS MR KUSTRIN'S AD NOW MR MILOSEVIC IS IN HIS OFFICE TALKING ABOUT REGISTERING A BUSINESS IN HONG KONG WHAT KIND OF BUSINESS I'M NOT SURE SAYS MR MILOSEVIC ANY KIND HE'D ALSO LIKE A NEW PASSPORT WHAT KIND ANY KIND MR KUSTRIN IS HOPEFUL HE SAYS HE HAS MANY CONTACTS IN HONG KONG AND EVEN OWNS A RESTAURANT THERE AS FOR PASSPORTS HE SUGGESTS HOW ABOUT BELIZE 9305100036 930510 BUSINESS BRIEF GILLETTE CO AFTER US ANTITRUST EFFORTS FAIL PARKER PEN IS ACQUIRED GILLETTE CO SAID IT ACQUIRED ALL THE STOCK OF PARKER PEN HOLDINGS LTD NEWHAVEN UK FOR 285 MILLION 4502 MILLION THE MOVE FRIDAY FOLLOWS A WASHINGTON FEDERAL JUDGE'S DENIAL LAST WEDNESDAY OF A MOTION BY THE US DEPARTMENT OF JUSTICE FOR A PRELIMINARY INJUNCTION TO PREVENT THE TRANSACTION ON ANTITRUST GROUNDS THE COURT SAID THE GOVERNMENT IS NOT LIKELY TO SUCCEED ON THE MERITS AFTER A FULL TRIAL SHOULD A FULL TRIAL EVER OCCUR THE JUSTICE DEPTARTMENT SOUGHT TO PREVENT THE ACQUISITION BECAUSE IT SAID THAT WHEN PARKER IS COMBINED WITH GILLETTE'S WATERMAN BRAND THE COMPANY WILL HAVE A DOMINANT POSITION IN PREMIUM FOUNTAIN PENS WITH MORE THAN 40 OF THE MARKET AFTER THE COURT ACTED A DEPARTMENT SPOKESWOMAN SAID WE CONTINUE TO BELIEVE THE MERGER IS LIKELY TO BE ANTICOMPETITIVE WE'RE CONSIDERING OUR OPTIONS GILLETTE SAID THE ACQUISITION WAS FINANCED BY BANK DEBT WITH LOAN NOTES BEING ISSUED TO SOME OF THE SELLERS 9305100035 930510 SPORTS BASEBALL AND TV AGREE TO CHART NEW RELATIONS BY DENNIS KNEALE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MAJOR LEAGUE BASEBALL'S PROPOSED NEW CONTRACT WITH ABC AND NBC WOULD THROW OUT HUGE RIGHTS FEES IN FAVOR OF A JOINT VENTURE SHARING ALL RISK AND REWARD THE FIRST TIME THE NETWORKS HAVE AGREED TO SHARE ALL AD REVENUE WITH A SPORTS LEAGUE MAJOR LEAGUE BASEBALL'S TENTATIVE ACCORD WITH THE NETWORKS MARKS A PRECEDENTSETTING REVERSAL FROM THE CURRENT CONTRACT WITH CBS WHICH HAD PAID 106 BILLION FOR FOUR YEARS ONLY TO RUN UP STAGGERING LOSSES OF MORE THAN 500 MILLION THE NEW CONTRACT WOULD HAND OVER PRODUCTION AND ADVERTISING SALES TO THE VENTURE JOINTLY OWNED BY THE THREE PARTNERS BUT BASEBALL WOULD GET A SURPRISING SHARE OF MORE THAN 80 OF ALL NET ADVERTISING SALES THE NETWORKS COULD THEREBY FORGO HUNDREDS OF MILLIONS OF DOLLARS IN UPFRONT RIGHTS FEES AND ALL BUT ELIMINATE CHANCES OF BIG LOSSES IN RETURN ABC AND NBC MUST SACRIFICE MOST UPSIDE POTENTIAL AND WOULD BE LUCKY TO GENERATE ANNUAL PROFITS OF 10 MILLION APIECE ONE STRONG POINT IS THAT THE PACT ADDS A NEW ROUND OF WILD CARD PLAYOFFS OF AS MANY AS 20 GAMES AMONG DIVISIONAL RIVALS GIVING THE NETWORKS AND BASEBALL ALIKE AN EXTRA SHOT AT REVENUE THE PROPOSED PACT MAY MARK AN EVEN BIGGER RISK FOR MAJOR LEAGUE BASEBALL IT NOW MUST TAKE THE LEADING ROLE IN SELLING TO ADVERTISERS AND IT WON'T GET THE GUARANTEED CASH FLOW OF RICH RIGHTS FEES BUT THE LEAGUE DIDN'T HAVE MUCH CHOICE IN TALKS ON A STRAIGHT RIGHTS DEAL THE NETWORKS BALKED AT PAYING EVEN AS MUCH AS HALF THE AVERAGE 265 MILLION A YEAR THAT CBS HAD PAID GIVEN THE CBS LOSSES NONE OF THE NUMBERS THAT ANY OF THE THREE NETWORKS WERE FLOATING MERITED FURTHER NEGOTIATION SAID TOM WERNER AN OWNER OF THE SAN DIEGO PADRES WHO HELPED WORK OUT THE NEW PACKAGE IN THE NEW VENTURE'S FIRST YEAR BASEBALL MAY ONLY MATCH THE 120 MILLION RANGE THE NETWORKS WERE CONSIDERING BIDDING BASEBALL EXECUTIVES CONCEDED IN THE SHORT RUN WE'RE NO WORSE OFF SAYS MR WERNER BUT THE LEAGUE COULD DO BETTER AND IN LATER YEARS THE OWNERS BELIEVE THEY CERTAINLY WILL YOU KNOW WHAT I THINK WE CAN DO A BETTER JOB OF SELLING ADVERTISERS ON BASEBALL SAID MR WERNER A VETERAN PRODUCER OF SUCH NETWORK COMEDIES AS ROSEANNE THE NEW APPROACH IF IT WORKS COULD WELL POSE A MODEL FOR OTHER NEGOTIATIONS BETWEEN TELEVISION NETWORKS AND SPORTS LEAGUES BUT FIRST IT MUST CLEAR THE SIZABLE HURDLE OF WINNING THE APPROVAL OF BASEBALL OWNERS AND THE PLAYERS' UNION THE OWNERS WHO TEND TO BE A FRACTIOUS BUNCH ARE TO REVIEW THE DETAILS OF THE PROPOSED DEAL ON THURSDAY SOME MAY BALK AT CONTRACT TERMS THAT GUARANTEE ABC AND NBC EXCLUSIVE NATIONAL COVERAGE OF A DOZEN REGULARSEASON GAMES BECAUSE IT COULD REQUIRE THEIR OWN TEAMS TO GIVE UP A FEW LOCAL TELECASTS OTHER OWNERS MAY DISLIKE THE POSSIBILITY THAT A PRIMETIME NETWORK GAME COULD CUT INTO THEIR LOCAL ATTENDANCE IN ADDITION THE NEW DEAL WOULD ELIMINATE NATIONWIDE COVERAGE OF THE AMERICAN AND NATIONAL LEAGUE CHAMPIONSHIP GAMES INSTEAD AIRING GAMES ON A REGIONAL BASIS THAT COULD MIFF SOME OWNERS LOOKING FOR A NATIONAL FOLLOWING FANS MIGHT DISLIKE IT TOO AS WELL AS THE NEW CONTRACT'S PROVISION THAT KILLS THE NOTION OF A NATIONAL GAME ON LAZY SATURDAY AFTERNOONS IN FAVOR OF PRIMETIME COVERAGE THERE ARE A FEW ISSUES THAT SOME CLUBS MIGHT NOT LIKE THERE'S ALWAYS SOME SELFINTEREST INVOLVED SAID EDDIE EINHORN VICE CHAIRMAN OF THE CHICAGO WHITE SOX AND ONE OF THE DEAL'S NEGOTIATORS STILL THE NEW SIXYEAR CONTRACT OFFERS ADVANTAGES TO BOTH SIDES FOR THE FIRST TIME IN THE HISTORY OF MAJOR SPORTS THERE IS NO RIGHTS FEE WE PUT UP THE TIME AND AD INVENTORY THEY PUT UP THE GAMES SAID NBC SPORTS PRESIDENT DICK EBERSOL ABC SPORTS PRESIDENT DENNIS SWANSON ADDED WHAT WE'RE GAMBLING WITH IS OUR TIME AND THAT ABC CAN EARN AS MUCH ON THE JOINT VENTURE AS IT COULD ON ADS FOR OTHER SHOWS IT WOULD HAVE RUN INSTEAD IN EMBRACING THE DEAL CAPITAL CITIES/ABC INC AND GENERAL ELECTRIC CO'S NBC HAVE AGREED TO INVEST IN A VENTURE THAT WOULD COMPETE IN AD SALES WITH OTHER ABC AND NBC SPORTS SHOWS THAT WAS A MAJOR REASON WHY CBS DESPITE SPENDING FOUR YEARS DEFENDING ITS BASEBALL DEAL AND BUILDING AN EXPERTISE AND IDENTITY IN THE SPORT REJECTED THE JOINTVENTURE APPROACH CBS PRESIDENT NEAL PILSON COULDN'T BE REACHED FOR COMMENT ABC NBC AND MAJOR LEAGUE BASEBALL WOULD EACH CONTRIBUTE ABOUT 10 MILLION BY JULY 1 TO COVER EXPENSES FOR THE FIRST TWO YEARS BUT BASEBALL WOULD CONTROL THE BOARD AND IT WOULD GET ABOUT 85 OF THE FIRST 140 MILLION OR SO IN NET AD SALES AFTER AD AGENCY FEES THE THREE THEN EVENLY SPLIT THE NEXT 30 MILLION TO RECOUP THEIR INVESTMENT SALES BEYOND THE 170 MILLION MARK WOULD BE DIVIDED 801010 AMONG BASEBALL AND THE NETWORKS EXECUTIVES SAID THE CONTRACT AIMS AT FIXING SOME BASEBALL WEAKNESSES THE RATINGS FOR SATURDAY AFTERNOON GAMES HAVE FALLEN 40 IN FOUR YEARS TO JUST 31 OF HOMES UNDER THE NEW CONTRACT REGULARSEASON BROADCASTS WOULD AIR IN PRIME TIME AND ONLY AFTER THE ALLSTAR GAME AT MIDSEASON AS PLAYOFF RACES HEAT UP IN ADDITION ABC AND NBC WOULD AIR GAMES REGIONALLY PICKING FROM A DOZEN EACH WEEK TO RAISE VIEWING AMONG LOCAL FANS MOREOVER A NEW PLAYOFF ROUND ADDS UP TO 20 ADDITIONAL GAMES FOR THE NETWORKS TO AIR IT WOULD ALSO KEEP MANY MORE TEAMS ALIVE WELL INTO THE LAST WEEKS OF THE SEASON KEEPING FANS INTERESTED LONGER ANOTHER BENEFIT IS THAT ALL PLAYOFF GAMES STAY ON FREE BROADCAST TELEVISION AT A TIME WHEN WASHINGTON POLITICOS HAVE COMPLAINED ABOUT BIGTIME SPORTS MOVING TO CABLE 9305100034 930510 BUSINESS BRIEF GRUPO BANCO ESPANOL DE CREDITO PRETAX PROFIT PLUNGED 95 IN 1ST PERIOD ON PROVISIONS SPAIN'S GRUPO BANCO ESPANOL DE CREDITO OR BANESTO SAID IT PUT NEARLY ALL OF ITS FIRSTQUARTER PROFIT TOWARD PROVISIONING CAUSING A 95 DROP IN CONSOLIDATED PRETAX PROFIT TO 808 MILLION PESETAS 69 MILLION FROM 1723 BILLION PESETAS THE PREVIOUS YEAR BANESTO SAID ITS FIRST QUARTER 1993 RESULTS ALSO WERE DISTORTED BY THE SALE OF ITS SUBSIDIARY BANCO DE MADRID TO GERMANY'S DEUTSCHE BANK IN MARCH THE RESULTS DIDN'T INCLUDE BANESTO'S INDUSTRIAL HOLDING LA CORPORACION BANESTO 9305100033 930510 ABREAST OF THE MARKET LEARNING TO LIVE WITH THE STOCK MARKET OF THE 1990S BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL IT'S A BRAVE NEW WORLD FOR THE STOCK MARKET INVESTORS FAMILIAR WITH THE RELATIVELY SMOOTH GRADUAL CLIMB OF STOCK PRICES IN THE 1980S ARE AWAKENING TO THE HARSH REALITIES OF THE 1990S THE NEW STOCK MARKET LANDSCAPE FASHIONED LARGELY BY THE SLOW ECONOMIC RECOVERY IS PROLONGING THE BULL MARKET BUT CAUSING SEVERE PRICE SWINGS IN DIFFERENT INDUSTRY GROUPS THE MARKET'S NEW MOTIF IS CHARACTERIZED BY PROLONGED PERIODS OF STAGNATION PUNCTUATED BY INTENSE BURSTS OF VOLATILE PRICE MOVES WHAT WE'RE GETTING IS A STAIRCASE PATTERN WHERE STOCK PRICES MOVE DRAMATICALLY VERY QUICKLY THEN SIT IN A TRADING PATTERN SAYS ABBY J COHEN MARKET STRATEGIST AT GOLDMAN SACHS RIGHT NOW WE'RE STUCK ON ONE OF THOSE STEPS BUT MS COHEN PREDICTS THAT SEVERAL FACTORS ARE AT WORK THAT WILL PUSH STOCK PRICES SHARPLY HIGHER YET AGAIN THE SLOW ECONOMIC RECOVERY WHILE FRUSTRATING TO MANY INVESTORS AND TO POLICY MAKERS IN WASHINGTON NEVERTHELESS WORKS TO THE BENEFIT OF THE STOCK MARKET AS IT EXTENDS PROFIT GROWTH OVER A LONGER PERIOD ALSO SHE EXPECTS NEW FUNDS TO CONTINUE TO POUR INTO THE STOCK MARKET AS AGING BABY BOOMERS BEGIN TO INVEST FOR RETIREMENT AND THEIR CHILDREN'S COLLEGE EDUCATION THIS PARTICULAR ECONOMIC RECOVERY AND PROFIT EXPANSION IS LIKE A NORMAL ONE EXCEPT THAT IT IS STRETCHED OUT HORIZONTALLY MS COHEN SAYS THE WHOLE PROCESS TAKES A LOT LONGER THOUGH SOME PESSIMISTS BELIEVE THE MARKET'S CURRENT MALAISE IS A SIGN OF A LOOMING BEAR MARKET MS COHEN BELIEVES THE BULL MARKET WILL CONTINUE THIS IS NOT THE BEGINNING OF A BEAR MARKET SHE SAYS WHILE RECOGNIZING THERE ARE GOOD WEEKS AND BAD WEEKS THIS IS STILL A BULL MARKET AND WE'LL RIDE THE SURF BUT THE WATERS ARE LIKELY TO BE ROUGH WARREN SMITH MANAGING EDITOR OF BCA FORETRENDS AN INSTITUTIONAL RESEARCH SERVICE SAYS THE WEAK ECONOMIC RECOVERY IS KEEPING INTEREST RATES LOW AND ATTRACTING HORDES OF INDIVIDUAL INVESTORS INTO THE MARKET THROUGH MUTUAL FUNDS THE RESULT HE SAYS IS A MARKET THAT IS MUCH MORE SKITTISH NOW THAN DURING THE TWO DECADES IT WAS DOMINATED BY THE PENSION FUND MANAGERS WITH PENSION FUNDS YOU HAD A VERY PREDICTABLE KIND OF FLOW INTO THE MARKET MR SMITH SAYS NOW YOU HAVE MUCH MORE DYNAMIC ACTIVITY AS A RESULT INVESTORS NOW NEED TO BE MUCH MORE SENSITIVE TO SHORTTERM MARKET SWINGS IN THE 1980S YOU COULD PLAY THE OVERALL MARKET ALL THE TURKEYS WERE FLYING MR SMITH SAYS NOW YOU NEED TO FOCUS ON ASTUTE MARKET TIMING WHICH IS TOUGH MR SMITH EXPECTS THE BULL MARKET TO REMAIN INTACT AS LONG AS RATES STAY LOW THE END WILL COME ABOUT ONLY WHEN RATES MOVE UP MORE SUBSTANTIALLY THAN I CAN ENVISION IN THE FORESEEABLE FUTURE HE SAYS WE'LL GET SOME BLIPS LATER THIS YEAR BUT THEY DON'T REALLY RING THE FINAL BELL IT COULD BE A LONG WAIT FOR THE BEARS AC MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF SAYS THE PLODDING ECONOMIC RECOVERY COMPLICATES INVESTMENT DECISIONS OTHER ECONOMIC CYCLES WERE MORE CLEARCUT AND PRODUCED EXPECTED RESPONSES IN STOCK PRICES HE SAYS NOW ANTICIPATING THE STOCK MARKET'S PATH IS FAR MORE DIFFICULT THE NORMAL UPANDDOWN CYCLE HAD A CERTAIN TYPE OF PREDICTABILITY MR MOORE SAYS IT'S A LITTLE LESS PREDICTABLE NOW WHEN THE ECONOMY ISN'T ON ANY SET TRACK MR MOORE CONTENDS THAT THE TRADING HABITS OF INSTITUTIONAL INVESTORS ARE EXACERBATING THE MARKET'S SWINGS HE SAYS THESE INVESTORS TEND TO FIXATE ON COMPANIES THAT PROMISE STRONG EARNINGS AND DRIVE UP THEIR PRICES HIGHER THAN MAY BE REASONABLE AS A RESULT PRICEEARNINGS RATIOS BECOME INFLATED BUT HE ADDS WHEN A STOCK FALLS OUT OF FAVOR THE CONSEQUENCES ARE DEVASTATING WHEN THE STOCK HICCUPS IT GETS KILLED AS PHILIP MORRIS DID HE SAYS IT MEANS THE MARKET IS INCREASINGLY VOLATILE THOUGH HE FINDS FAULT WITH SOME PRACTICES OF INSTITUTIONAL INVESTORS MR MOORE STILL RECOMMENDS THAT IN THIS TREACHEROUS MARKET INDIVIDUALS USE PROFESSIONAL MONEY MANAGEMENT RATHER THAN TRY TO RIDE THE CURRENTS THEMSELVES ONLY THOSE INVESTORS WHO KNOW HOW TO DIVERSIFY THEIR PORTFOLIOS BUY QUALITY STOCKS AND CUT THEIR LOSSES QUICKLY SHOULD VENTURE INTO THE MARKET ALONE HE SAYS IF IT'S A VOLATILE TOUGH MARKET AN INDIVIDUAL HAS LESS CHANCE THAN HE WOULD WITH SOME PROFESSIONAL HELP MR MOORE SAYS PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES PARTLY BLAMES THE RAPID FLOW OF INFORMATION FOR THE SHARP MOVES IN THE MARKET BECAUSE OF TECHNOLOGY MOST INSTITUTIONAL INVESTORS NOW RECEIVE THE SAME INFORMATION AT PRACTICALLY THE SAME TIME AND THEY ACT ON IT IMMEDIATELY MAKING THE MARKET MORE EFFICIENT BUT ALSO MORE VICIOUS IT MEANS IF YOU'RE NOT ON TOP OF THE LATEST INFORMATION FLOW YOU CAN GET BANGED UP PRETTY BADLY MR CANELO SAYS IT MAKES IT MORE DIFFICULT TO MAKE MONEY ESPECIALLY FOR THE LITTLE GUY MR CANELO WORRIES THAT INVESTORS ARE PAYING LESS ATTENTION TO FUNDAMENTAL ANALYSIS OF COMPANIES AND ARE JUST JUMPING ON WHATEVER IS THE LATEST BANDWAGON THERE ARE MORE FUNDAMENTAL COMPANY REPORTS BEING WRITTEN ON WALL STREET BUT THEY'RE BEING READ LESS AND LESS HE SAYS NOW THE THING IS MOMENTUM PLAYING THE TREND IS YOUR FRIEND MR CANELO SAYS LEMMINGLIKE INVESTING LATELY IS MOST EVIDENT IN THE SHARP MOVEMENTS WITHIN SECTORS AND THE POPULARITY OF SECTOR MUTUAL FUNDS CONTRIBUTES TO THE WHIPSAW EFFECTS WITHIN CERTAIN STOCK GROUPS HE CRITICIZES SECTOR FUND MANAGERS FOR EXACERBATING PRICE SWINGS WE'RE NOT SEEING MARKET VOLATILITY AS MUCH AS SECTOR VOLATILITY MR CANELO SAYS AND THAT MAKES OVERALL MARKET PREDICTING LESS IMPORTANT INSTEAD OF HAVING ONE BROAD MARKET THAT MOVES TOGETHER YOU GET A BUNCH OF LITTLE MARKETS STOCK PRICES SLIPPED ON A WEAKERTHANEXPECTED JOBS REPORT AND A TUMBLE IN BOND PRICES THE DOW JONES INDUSTRIAL AVERAGE LOST 471 POINTS TO 343719 STANDARD & POOR'S 500STOCK INDEX FELL 095 TO 44231 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED DOWN 054 TO 24468 THE DOW JONES EQUITY MARKET INDEX FELL 085 OR 020 TO 41963 DECLINING ISSUES OUTPACED ADVANCERS 981 TO 858 TRADING ON THE BIG BOARD TOTALED 223450000 SHARES DOWN FROM 254370000 SHARES THURSDAY WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 021 TO 10582 FOR THE WEEK THE INDUSTRIAL AVERAGE GAINED 964 POINTS OR 028 FOR THE WEEK THE S&P 500 GAINED 212 OR 048 AND THE BIG BOARD COMPOSITE ADDED 122 OR 050 THE LABOR DEPARTMENT REPORTED THAT NONFARM PAYROLLS ROSE BY 119000 IN APRIL FALLING SHORT OF THE 163000 INCREASE ECONOMISTS HAD EXPECTED BUT THE UNEMPLOYMENT RATE WAS UNCHANGED AT 70 AND THE DATA SHOWED GAINS IN THE LENGTH OF THE AVERAGE WORKWEEK AND FACTORY OVERTIME THE TREASURY BENCHMARK 30YEAR BOND FELL 1/2 POINT WITH THE YIELD CLIMBING TO 684 TOBACCO STOCKS LED THE MARKET AS FEARS OF A PRICE WAR EASED PHILIP MORRIS JUMPED 1 7/8 TO 51 RJR NABISCO ADDED 1/8 TO 5 3/4 AND AMERICAN BRANDS GAINED 3/4 TO 32 1/4 AIRLINES STOCKS SLID AFTER UNITED AIRLINES AND DELTA AIR LINES SAID THEY WOULD MATCH SUMMER FARE DISCOUNTS THAT NORTHWEST AIRLINES UNVEILED THURSDAY UAL PARENT OF UNITED LOST 1/2 TO 135 1/2 AND DELTA DROPPED 1 1/8 TO 57 1/8 AMR PARENT OF AMERICAN AIRLINES FELL 1 TO 67 5/8 AND SOUTHWEST AIRLINES SLIPPED 1/2 TO 37 7/8 WEIRTON STEEL CLIMBED 1 3/8 TO 7 7/8 AFTER PAINEWEBBER ANALYST PETER MARCUS UPGRADED HIS INVESTMENT RATING ON THE COMPANY TO A BUY FROM HOLD MR MARCUS SAID THE COMPANY SHOULD BENEFIT FROM RECENT IMPROVEMENTS IN ITS PRODUCTION EQUIPMENT AS WELL AS FROM RECENT GAINS IN STEEL PRICES GAP JUMPED 1 1/4 TO 33 3/4 ON POSITIVE REMARKS FROM SEVERAL ANALYSTS DEAN WITTER REYNOLDS UPGRADED ITS RATING ON THE STOCK TO A BUY FROM ACCUMULATE NATWEST SECURITIES BEGAN COVERAGE WITH AN ACCUMULATE RATING HORACE MANN EDUCATORS SKIDDED 1 1/8 TO 26 3/8 THE SPRINGFIELD ILL COMPANY WHICH MARKETS INSURANCE PRIMARILY TO SCHOOLTEACHERS REPORTED THAT ITS FIRSTQUARTER PROFIT SLIPPED TO 67 CENTS A SHARE FROM 68 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDED AN INCREASED AMOUNT OF WEATHERRELATED CATASTROPHE LOSSES MARVEL ENTERTAINMENT LOST 1/2 TO 27 5/8 AFTER MACANDREWS & FORBES CLOSED ITS 30ASHARE TENDER OFFER FOR 10 MILLION SHARES OF THE NEW YORK COMIC BOOK COMPANY MACANDREWS WHICH IS CONTROLLED BY NEW YORK INVESTOR RONALD O PERELMAN SAID NEARLY 14 MILLION SHARES HAD BEEN TENDERED ANDREA ELECTRONICS SURGED 4 5/8 TO 49 1/2 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE ITS FIRSTQUARTER NET INCOME JUMPED TO 31 CENTS A SHARE FROM EIGHT CENTS A SHARE A YEAR EARLIER ROYAL DUTCH EASED 1/2 TO 89 3/4 ON VOLUME OF 63 MILLION SHARES A SPOKESMAN FOR THE DUTCH OIL AND NATURAL GAS COMPANY SAID IT DIDN'T KNOW ANY REASON FOR THE ACTIVITY TRADERS SPECULATED IT WAS TIED TO A DIVIDEND THE COMPANY IS TO PAY NEXT MONTH 9305100031 930510 BUSINESS BRIEF BRAMBLES INDUSTRIES CONCERN SAYS 2NDHALF NET TO BE CONSIDERABLY LOWER BRAMBLES INDUSTRIES LTD SYDNEY AUSTRALIA WARNED IN A STATEMENT THAT EARNINGS IN THE FISCAL SECOND HALF ARE LIKELY TO BE CONSIDERABLY LOWER THAN FOR THE SAME PERIOD LAST YEAR FOLLOWING A WORSENING OF TRADING CONDITIONS IN CONTINENTAL EUROPE OVER THE PAST TWO MONTHS BUT THE TRANSPORTATION AND SECURITY COMPANY SAID AFTERTAX EARNINGS FOR THE YEAR ENDING JUNE 30 ARE UNLIKELY TO VARY FROM THE YEAR EARLIER BY MORE THAN 15 BRAMBLES REPORTED IN FEBRUARY THAT AFTERTAX PROFIT FOR THE FIRST HALF EASED 07 TO 881 MILLION AUSTRALIAN DOLLARS US621 MILLION FROM A887 MILLION A YEAR EARLIER LAST FISCAL YEAR THE COMPANY'S PROFIT FELL 62 TO A1802 MILLION ALTHOUGH SALES ROSE 64 TO A244 BILLION JOHN FLETCHER BRAMBLES CHIEF EXECUTIVE SAID THE DOWNTURN IN CONTINENTAL EUROPEAN OPERATIONS HAS BECOME PARTICULARLY NOTICEABLE IN RAILBASED BULK RAW MATERIAL AND MOTOR VEHICLE TRANSPORT WITH SOME SOFTENING IN RAIL UTILIZATION GENERALLY THE DECLINE HAS BEEN MOST EVIDENT IN GERMANY AND FRANCE 9305100030 930510 BUSINESS BRIEF HDR POWER SYSTEMS INC RIVAL SOLIDSTATE CONTROLS INC PLANS 65 MILLION BUYOUT HDR POWER SYSTEMS INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO BE ACQUIRED BY RIVAL SOLIDSTATE CONTROLS INC OF COLUMBUS OHIO FOR 65 MILLION HDR SHAREHOLDERS WILL RECEIVE 325 A COMMON SHARE THE COMPANY SAID IT CURRENTLY HAS TWO MILLION SHARES OUTSTANDING INCLUDING 18000 OPTIONS ON ITS COMMON STOCK HDR HILLIARD OHIO MANUFACTURES POWER PRODUCTS INCLUDING A LINE OF UNINTERRUPTIBLE POWER SYSTEMS FOR INDUSTRIAL AND COMMERCIAL USE AND A LINE OF POWER CONTROLS USED IN ELECTRIC HEATING SOLIDSTATE CONTROLS ALSO MAKES UNINTERRUPTIBLE POWER SYSTEMS HDR SAID COMPLETION OF THE TRANSACTION IS SUBJECT TO REGULATORY APPROVAL AND THE APPROVAL OF AT LEAST 80 OF ITS SHAREHOLDERS THE COMPANY SAID IT WILL SET A DATE FOR THE SHAREHOLDER MEETING AFTER JUNE 10 ADDING THAT IT EXPECTS TO COMPLETE THE TRANSACTION IN 60 TO 90 DAYS IN THE YEAR ENDED JUNE 27 HDR HAD SALES OF 81 MILLION NO ANNUAL SALES FIGURES WERE AVAILABLE FOR PRIVATELY HELD SOLIDSTATE A UNIT OF MARMON GROUP INC 9305100029 930510 BUSINESS BRIEF SECOR BANK MERGER PROPOSAL IS RECEIVED BOARD BEGINS TO REVIEW IT SECOR BANK SAID THAT IT RECEIVED AN UNSOLICITED MERGER PROPOSAL FROM A FINANCIAL INSTITUTION AND THAT ITS BOARD WAS BEGINNING TO REVIEW IT VICTOR E NICHOL JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE BIRMINGHAM ALA THRIFT DECLINED TO IDENTIFY THE SUITOR SECOR WHICH HAS ASSETS OF 2 BILLION AGREED LAST YEAR TO BE ACQUIRED BY UNION PLANTERS CORP A BANK HOLDING COMPANY BASED IN MEMPHIS TENN FOR 35 MILLION IN STOCK BUT THE MERGER DISCUSSIONS WERE STALLED BY COMPLICATIONS INVOLVING GOVERNMENT OWNERSHIP OF SECOR PREFERRED STOCK TALKS WERE EVENTUALLY BROKEN OFF JOHN W PARKER CHIEF FINANCIAL OFFICER OF UNION PLANTERS SAID HIS COMPANY WAS INTERESTED MAINLY IN SECOR'S NORTHERN ALABAMA BRANCHES FIVE OF THOSE BRANCHES HAVE SINCE BEEN SOLD TO AMSOUTH BANK A UNIT OF AMSOUTH BANCORP 9305100028 930510 BUSINESS BRIEF STORA AB FIRM TO SPEND 758 MILLION TO IMPROVE ITS FACILITIES SWEDEN'S STORA AB EUROPE'S LARGEST FORESTPRODUCTS GROUP SAID IT WILL INVEST 550 MILLION KRONOR 758 MILLION TO ENHANCE PRODUCTION FACILITIES AT ITS PLANTS THE GROUP'S STORA FELDMUEHLE UNIT WILL INVEST 140 MILLION KRONOR AT ITS CORBEHEM MILL IN FRANCE TO IMPROVE THE QUALITY OF LIGHTWEIGHT COATED MAGAZINE PAPER ABOUT 100 MILLION KRONOR WILL BE SPENT TO REBUILD A CARTONBOARD MACHINE AT STORA'S SKOGHALL PLANT IN SWEDEN WITH AN ADDED 75 MILLION KRONOR TO BE USED TO TREATMENT CHEMICAL WASTES FROM THE SAME PLANT THE REMAINING 235 MILLION KRONOR WILL BE DEVOTED TO MEASURES TO BE IMPLEMENTED AT ALL PRODUCTION PLANTS THROUGHOUT THE GROUP STORA SAID 9305100027 930510 BUSINESS BRIEF CANON INC STRONG YEN FORCES COMPANY TO SLASH EARNINGS FORECAST CANON INC A MAJOR JAPANESE CAMERA AND OFFICE EQUIPMENT MAKER CUT ITS PROFIT FORECAST FOR 1993 50 CITING THE ADVERSE EFFECTS OF THE STRONGER YEN THE COMPANY SAID IT EXPECTED A NET PROFIT THIS YEAR OF 20 BILLION YEN 1813 MILLION DOWN FROM ITS EARLIER FORECAST OF 40 BILLION YEN SALES IT SAID WERE EXPECTED TO TOTAL 1910 TRILLION YEN COMPARED WITH AN EARLIER FORECAST OF 1980 TRILLION YEN IN 1992 CANON HAD A PROFIT OF 359 BILLION YEN ON SALES OF 1914 TRILLION YEN THE COMPANY SAID THE DOWNWARD REVISION WAS NECESSARY DESPITE STEPS TO COPE WITH THE CURRENCY SITUATION SUCH AS RAISING PRICES ON GOODS SOLD OVERSEAS AND LOCALIZING MORE OF ITS PRODUCTION ACTIVITY WE AREN'T ABLE TO ABSORB THIS RAPID STRENGTHENING OF THE YEN CANON SAID 9305100026 930510 THE OUTLOOK ECONOMIC SIGNS POINT TO MORE SLUGGISHNESS BY LINDLEY H CLARK JR NEW YORK WHEN INFLATIONADJUSTED GROSS DOMESTIC PRODUCT ROSE AT AN ANNUAL RATE OF ONLY 18 IN THE FIRST QUARTER OF THIS YEAR MOST ANALYSTS REASONED THAT THE 47 GROWTH IN THE PRIOR QUARTER HAD BEEN UNSUSTAINABLE NOW THAT THE BAD QUARTER IS BEHIND US MAYBE WE'RE READY FOR A STRONG REBOUND OR MAYBE NOT MITCHELL J HELD OF SMITH BARNEY HARRIS UPHAM & CO THINKS THAT GROWTH IN THE CURRENT QUARTER WILL BE ABOUT EQUAL TO THE FIRST QUARTER AND WE ANTICIPATE ONLY A MODEST ACCELERATION IN THE SECOND HALF ON FRIDAY THE GOVERNMENT REPORTED THAT IN APRIL UNEMPLOYMENT STAYED FLAT AT 70 OF THE LABOR FORCE UNDOUBTEDLY THE COUNTRY HAD A LOT OF BAD WEATHER IN FEBRUARY AND MARCH INCLUDING SOMETHING NOW DUBBED THE BLIZZARD OF '93 THE STORMS CLOSED MANY STORES KEPT MANY CONSUMERS HOME AND CUT SHARPLY INTO RETAIL SALES NOW THAT BETTER WEATHER HAS RETURNED HOWEVER MANY ANALYSTS ARE RECOGNIZING THAT THERE WERE OTHER PROBLEMS IN EARLY 1993 SOME OF WHICH ARE STILL CAUSING TROUBLE CONSUMERS FOR INSTANCE STILL DOUBT THAT THEIR WOES ARE ALL BEHIND THEM THE EXPECTATIONS COMPONENT OF THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX IS USUALLY CONSIDERED A GOOD COINCIDENT INDICATOR OF REAL GDP ED YARDENI OF CJ LAWRENCE NOTES THAT THE INDEX ROSE SLIGHTLY IN APRIL BUT REMAINS AT A LOW LEVEL EMPLOYMENT IS GROWING BUT NOT FAST ENOUGH TO SUPPORT THE RISE IN CONFIDENCE THAT FOLLOWED PRESIDENT CLINTON'S ELECTORAL VICTORY CURRENTLY 413 OF CONSUMERS SURVEYED SAY JOBS ARE HARD TO GET ANOTHER FACTOR THAT MAY SLOW CONSUMER SPENDING IS THE PROSPECT OF HIGHER FEDERAL TAXES STEPHEN S ROACH OF MORGAN STANLEY & CO STILL HOPES TO SEE A REASONABLY STRONG RECOVERY BUT SAYS THE OUTLOOK COULD CHANGE WITH THE ADOPTION OF HIGHER PERSONAL TAXES HIGHER CORPORATE INCOME TAXES AN INCREASE IN THE MINIMUM WAGE AND EXPANDED PAYROLL TAXES FOR WORKER RETRAINING AND HEALTHCARE REFORM THE UPSHOT HE'S AFRAID WOULD BE STAGFLATION IN 1994 WITH A LITTLE LESS GROWTH A LOT MORE INFLATION AND A LOT LESS CORPORATE EARNING POWER ONE HOLDOVER FROM THE FIRSTQUARTER SLOWDOWN IS A SIZABLE BUILDUP IN INVENTORIES WILLIAM V SULLIVAN JR OF DEAN WITTER REYNOLDS NOTES THAT THE FIRSTQUARTER RISE WAS THE LARGEST FOR ANY QUARTERLY PERIOD IN FOUR YEARS MOST OF THE BUILDUP TOOK PLACE AT THE RETAIL LEVEL AND MOST OF THE ACCUMULATION WAS PROBABLY INVOLUNTARY SO RETAILERS ARE LEFT WITH LARGE STOCKS TO WORK OFF LACY H HUNT CHIEF ECONOMIST OF CARROLL MCENTEE & MCGINLEY SAYS CONSUMER SPENDING MUST REBOUND DRAMATICALLY FOR SEVERAL MONTHS IN A ROW IF THE INVENTORY EXCESS IS TO BE ELIMINATED THIS MAY NOT BE EASY IN VIEW OF THE TAX UNCERTAINTIES CUSTOMERS FACE A STEP THAT COULD LIMIT THE NEED FOR NEW FEDERAL TAXES WOULD BE DEEPER CUTS IN FEDERAL SPENDING BUT FEDERAL SPENDING OF COURSE IS A SOURCE OF ECONOMIC GROWTH ONE REASON FOR THE WEAK GDP NUMBER IN THE FIRST QUARTER WAS A SHARP DROP IN DEFENSE SPENDING NO ONE WANTS TO EXPAND THE ARMED FORCES MERELY TO INCREASE GDP BUT THE CONTINUING EFFORT TO LIMIT MILITARY OUTLAYS IS LIKELY TO CURB GROWTH IN THE MONTHS AHEAD STATE AND LOCAL SPENDING ALSO CAN DO A LOT TO PUSH UP REAL GDP BUT STATES AND LOCALITIES LIKE THE FEDERAL GOVERNMENT HAVE HAD BUDGET PROBLEMS IN THE PAST YEAR THEIR OUTLAYS HAD LARGELY FLATTENED OUT IN THE PREVIOUS FOUR YEARS STATE AND LOCAL SPENDING ACCOUNTED FOR ABOUT ONEQUARTER OF THE RISE IN REAL GDP EVEN INDUSTRIES THAT SEEMED TO HAVE THINGS GOING THEIR WAY DIDN'T DO WELL IN THE FIRST QUARTER THE HOUSING MARKET WAS RATHER UNIMPRESSIVE EVEN THOUGH MORTGAGE INTEREST RATES WERE AT A 20YEAR LOW ORDERS TO US FACTORIES SLIPPED 15 IN MARCH THE LARGEST DROP IN SEVEN MONTHS LAST WEEK THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID ITS INDEX OF MANUFACTURING ACTIVITY SLIPPED TO 497 IN APRIL FROM 534 IN MARCH A READING BELOW 50 USUALLY INDICATES THAT BUSINESS AT THE NATION'S FACTORIES IS SHRINKING MANUFACTURING JOBS FELL BY 65000 LAST MONTH A KEY AREA OF CONCERN IS FOREIGN TRADE NET EXPORTS DELETED NEARLY 6 BILLION FROM REAL GDP AS THE OVERALL TRADE GAP WIDENED TO 546 BILLION THE LARGEST SHORTFALL ON A QUARTERLY BASIS IN 2 1/2 YEARS SUCH NUMBERS REFLECT THE WEAKNESS OF BUSINESS ABROAD A TREND THAT MAY LINGER ON IF THE ECONOMY CONTINUES ALONG AT ITS CURRENT PACE CONGRESS WILL START PRESSURING THE FEDERAL RESERVE TO SPEED GROWTH OF THE MONEY SUPPLY UP TO NOW THE FED APPEARS HAPPY WITH ITS SUCCESS IN RESTRAINING INFLATION AND SO FAR SEES NO NEED FOR DRASTIC ACTION TO ACCELERATE ECONOMIC GROWTH WHETHER CONGRESS WILL SHARE THE FED'S SATISFACTION MAY BE ANOTHER MATTER CONGRESS KILLED AN ECONOMICSTIMULUS BILL THAT THE CLINTON ADMINISTRATION PROPOSED BUT THERE ALREADY HAS BEEN TALK IN CONGRESS ABOUT REVIVING THE MEASURE UNLESS THERE IS MORE EVIDENCE OF A REBOUND PRESSURE FOR ACTION IS LIKELY TO GROW 9305100025 930510 BUSINESS BRIEF COMMERZBANK AG OPERATING PROFIT ROSE 25 DURING THE FIRST QUARTER COMMERZBANK AG ONE OF GERMANY'S LARGEST BANKS REPORTED FULL OPERATING PROFIT FOR THE FIRST QUARTER SURGED 25 FROM A YEAR EARLIER TO 651 MILLION MARKS 4133 MILLION NET COMMISSION INCOME JUMPED MORE THAN 21 FROM THE YEAREARLIER PERIOD WHILE NET INTEREST INCOME TOPPED YEARBEFORE LEVELS BY ONLY 23 MARTIN KOHLHAUSSEN CHAIRMAN OF THE BANK'S MANAGEMENT BOARD TOLD SHAREHOLDERS IN FRANKFURT MR KOHLHAUSSEN ATTRIBUTED THE JUMP IN COMMERZBANK'S FULL OPERATING PROFIT TO HIGHER PROFIT IN OWNACCOUNT CURRENCY AND SECURITIES TRADING PERSONNEL AND EQUIPMENT COSTS WERE 92 HIGHER THAN A YEAR EARLIER HE SAID TOTAL ASSETS TOTALED 2389 BILLION MARKS ON MARCH 31 15 MORE THAN AT THE END OF 1992 HE SAID OVERALL LENDING DECLINED 19 FROM DEC 31 TO 1634 BILLION MARKS BECAUSE OF A DROP IN SHORTTERM LOANS LONGTERM LOANS INCREASED MORE THAN 2 BILLION MARKS 9305100024 930510 BUSINESS BRIEF BFS BANKORP INC INVESTMENT BY SHAREHOLDER TO INCREASE CAPITAL RATING BFS BANKORP INC NEW YORK SAID AN INVESTMENT BY ITS LARGEST SHAREHOLDER WILL RAISE THE CAPITAL OF ITS SUBSIDIARY BANK TO THE HIGHEST REGULATORY CAPITAL RATING BFS SAID GOULD INVESTORS A NEW YORKBASED LIMITED PARTNERSHIP WILL INVEST ABOUT 17 MILLION IN BFS DEBT AND UPON REGULATORY APPROVAL ALSO PURCHASE 150000 SHARES AT 11 A SHARE A SUBSTANTIAL PORTION OF THE DEBT WILL BE PUT INTO THE BANKERS FEDERAL SAVINGS FSB UNIT AS EQUITY CAPITAL BFS SAID THE CAPITAL INFUSION WILL REDUCE THE BURDEN OF REGULATORY EXPENSE AND DEPOSIT INSURANCE EXPENSE IT ADDED BFS ALSO SAID THAT IN THE PERIOD ENDING APRIL 3 1995 GOULD MAY INCREASE ITS STAKE IN BFS TO AS MUCH AS 50 OF THE STOCK OUTSTANDING GOULD CURRENTLY OWNS SLIGHTLY LESS THAN 25 OF THE BANK HOLDING COMPANY'S 14 MILLION SHARES FOR THE FISCAL SECOND QUARTER ENDED MARCH 31 BFS REPORTED A PROFIT OF 2 MILLION OR 142 A SHARE INCLUDING A GAIN OF 117 A SHARE FROM A CHANGE IN ACCOUNTING FOR INCOME TAXES A YEAR EARLIER BFS POSTED A LOSS OF 43 MILLION OR 310 A SHARE 9305100023 930510 BUSINESS BRIEF ARKLA INC DEFINITIVE AGREEMENT SIGNED FOR SALE OF CERTAIN FACILITIES ARKLA INC SHREVEPORT LA SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL ITS KANSAS DISTRIBUTION AND TRANSMISSION FACILITIES TO UTILICORP UNITED INC'S PEOPLES NATURAL GAS DIVISION FOR ABOUT 25 MILLION ARKLA WHICH IS IN THE MIDST OF A RESTRUCTURING DESIGNED TO SLASH ITS DEBT ANNOUNCED IN DECEMBER THAT IT PLANNED TO SELL THE KANSAS PROPERTIES TO PEOPLES NATURAL GAS THE PROPERTIES INCLUDE THE ARKANSAS LOUISIANA GAS CO'S DISTRIBUTION FACILITIES SERVING 22600 NATURAL GAS CUSTOMERS IN SOUTHEAST KANSAS AND ARKLA ENERGY RESOURCES' NATURAL GAS PIPELINE AND RELATED FACILITIES IN KANSAS PENDING REGULATORY APPROVALS THE TRANSACTION IS EXPECTED TO CLOSE IN THREE TO SIX MONTHS 9305100022 930510 WHAT'S NEWS BUSINESS AND FINANCE THE UNEMPLOYMENT RATE REMAINED AT 7 IN APRIL AS UNCERTAINTY ABOUT THE ECONOMY AND CLINTON'S TAX AND HEALTH PROPOSALS SEEMED TO MAKE EMPLOYERS LEERY ABOUT HIRING BUSINESSES ADDED 119000 JOBSNOT ENOUGH TO BOOST CONSUMER SPENDING AND SPEED UP THE RECOVERY ANALYSTS SAID THE ADMINISTRATION WHICH CONCEDED IT MAY HAVE UNWITTINGLY SLOWED THE ECONOMY SAID THE DATA SHOW THE NEED TO EXPEDITE A BUDGET PLAN CLINTON HEALTH ADVISERS DECIDED TO FOLD WORKERS' COMPENSATION AND MEDICALRELATED AUTO INSURANCE COVERAGE INTO THE PENDING HEALTHCARE PACKAGE IN AN EFFORT TO WOO INDUSTRY BUT MANY BUSINESS GROUPS AREN'T SATISFIED MICROSOFT'S GATES PLANS TO MEET GERSTNER OF IBM TO DISCUSS BROADENING THE TIES BETWEEN THE TWO COMPANIES THE MEETING PLANS OF THE TWO EXECUTIVES WHO HAVE NEVER MET COME AMID SIGNS THAT A RECONCILIATION BETWEEN THE COMPANIES IS INCREASINGLY POSSIBLE GPA GROUP IS DISCUSSING AN ACCORD UNDER WHICH IT WOULD SELL HUNDREDS OF MILLIONS OF DOLLARS IN PLANES OR AIRCRAFT LEASES TO GE CAPITAL WHICH WOULD IN TURN INVEST AN UNDISCLOSED AMOUNT OF EQUITY IN THE JETLEASING CONCERN BUT PEOPLE FAMILIAR WITH THE DISCUSSIONS SAID MUCH UNCERTAINTY REMAINS LONGTERM BOND PRICES FELL AFTER A RALLY THAT WAS SPARKED BY SLUGGISH JOBS GROWTH IN APRIL LOST STEAM AND TRADERS FOCUSED ON THE TREASURY'S BORROWING NEEDS THIS WEEK THE YIELD ON THE BENCHMARK 30YEAR BOND ROSE TO 684 THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 471 POINTS TO 343719 ABC AND NBC AGREED TENTATIVELY TO GIVE MAJOR LEAGUE BASEBALL MORE THAN 80 OF ALL AD REVENUE FROM THEIR COVERAGE OF GAMES INSTEAD OF PAYING FIXED FEES THE NETWORKS WOULD ALL BUT ELIMINATE THE CHANCE OF BIG LOSSES BUT ALSO THE OPPORTUNITY FOR BIG PROFITS TWO INFLUENTIAL HOUSE CHAIRMEN PLAN TO PUSH LEGISLATION THAT WOULD CODIFY THE RIGHT OF AIRLINES TO SELL INTERNATIONAL AIR ROUTES A MOVE THAT IS AIMED AT QUELLING A STORM TOUCHED OFF BY NEWS THAT THE GOVERNMENT IS REVIEWING ITS POLICIES ON INTERNATIONAL ROUTES LOTUS'S SHARES CLIMBED ON HOPES IT WILL RECAPTURE GROUND IN THE FASTGROWING MARKET FOR WINDOWS SOFTWARE WITH A NEW VERSION OF ITS 123 SPREADSHEET PACKAGE LOTUS'S STOCK ROSE 150 FRIDAY TO 32 UP 25 FOR THE WEEK AS REVIEWS OF THE PROGRAM APPEARED NUTRI/SYSTEM AGREED TO GIVE A CHICAGO INVESTOR GROUP OPERATIONAL CONTROL OF THE DIETCENTER FRANCHISER THE GROUP WHICH ISN'T BUYING THE COMPANY OUTRIGHT WILL PROVIDE WORKING CAPITAL FOR AN INTERIM PERIOD CANADA'S UNEMPLOYMENT RATE JUMPED TO 114 LAST MONTH HEIGHTENING CONCERN ABOUT THE STRENGTH OF THE COUNTRY'S RECOVERY THE APRIL FIGURE UP FROM 11 IN MARCH WAS THE HIGHEST RATE SINCE DECEMBER'S 115 AIR CANADA TRIMMED ITS EXECUTIVE RANKS AND PROVIDED FOR THE ELIMINATION OF ANOTHER 1000 JOBS THIS YEAR CONTRIBUTING TO A WIDER FIRSTPERIOD LOSS THE AIRLINE ALSO WROTE OFF ITS GPA STAKE BONDS LEHMAN BROTHERS TREASURY INDEX 511348 OFF 1949 COMMODITIES OIL 2044 A BARREL OFF THREE CENTS DOW JONES FUTURES INDEX 12167 OFF 005 SPOT INDEX 12002 OFF 051 DOLLAR 11030 YEN UP 026 15838 MARKS UP 00098 9305100021 930510 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 7/8 HIGH 2 11/16 LOW 2 7/8 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 302 30 TO 59 DAYS 304 60 TO 119 DAYS 305 120 TO 149 DAYS 308 150 TO 244 DAYS 315 245 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 307 30 DAYS 308 60 DAYS 308 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 303 ONE MONTH 306 THREE MONTHS 310 SIX MONTHS BANKERS ACCEPTANCES 298 30 DAYS 298 60 DAYS 299 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 3 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 288 13 WEEKS 298 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 712 60 DAYS 723 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 717 60 DAYS 727 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 9305100020 930510 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ARCHERDANIELSMIDLAND CO 250 MILLION OF NOTES DUE MAY 15 2003 PRICED AS 6 1/4S AT 99632 TO YIELD 630 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 04 PERCENTAGE POINT ABOVE THE WHENISSUED TREASURY 10YEAR NOTE RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY STEPHENS INC OF LITTLE ROCK ARK FEDERAL HOME LOAN BANKS 75 MILLION OF NOTES DUE MAY 14 1998 PRICED AT PAR TO YIELD 505 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 005 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE IT WILL BE SOLD THROUGH DEALERS LED BY DEAN WITTER FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993G22 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 293 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 34635 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199395 IS BACKED BY FANNIE MAE 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 145 YEARS SOUTH AUSTRALIAN GOVERNMENT FINANCING AUTHORITY AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 7 3/4 EUROBONDS DUE JUNE 30 2003 AT ISSUE PRICE 10065 VIA HAMBROS BANK LTD YIELD 795 ANNUAL AT BREAKEVEN PRICE FOR COMANAGERS SPREAD 32 BASIS POINTS ABOVE AUSTRALIAN GOVERNMENT NOTE DUE AUGUST 2003 GUARANTOR STATE OF SOUTH AUSTRALIA FEES 2125 POINTS ABBEY NATIONAL TREASURY SERVICES PLC UK 125 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE DEC 23 1996 AT ISSUE PRICE 100575 VIA WOOD GUNDY INC REOFFERED AT 9930 TO YIELD 721 ANNUAL SPREAD 60 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE FEES 15 POINTS THE CITY OF STOCKHOLM SWEDEN 160 MILLION SWISS FRANCS OF 5 PRIVATELY PLACED NOTES DUE JUNE 23 1998 PRICED AT 102 5/8 VIA SWISS BANK CORP FEES 15 POINTS 9305100019 930507 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 9305100018 930510 WHAT'S NEWS WORLDWIDE THE US IS EXPECTED TO PUT OFF NEW MOVES IN BOSNIA UNTIL NEXT WEEK BOTH RUSSIA AND CANADA HAVE URGED THE US TO WAIT UNTIL BOSNIA'S SERBS HOLD A WEEKEND VOTE ON WHETHER TO ACCEPT A UNBACKED PEACE TREATY SOME WEST EUROPEAN NATIONS AND RUSSIA ALSO HAVE SAID THEY WANT TO SEE WHETHER A PROMISED CUTOFF OF SUPPLIES FROM SERBIA HAS ANY IMPACT MEANWHILE A CEASEFIRE BETWEEN MUSLIMS AND SERBS IN BOSNIA APPEARED TO BE HOLDING THOUGH FIERCE MUSLIMCROAT FIGHTING WAS REPORTED IN THE TOWN OF MOSTAR SECRETARY OF STATE CHRISTOPHER BACK FROM MEETINGS ABROAD TOLD CLINTON ON SATURDAY THAT US ALLIES HAD YET TO ACCEPT A PLAN TO LIFT AN ARMS EMBARGO ON BOSNIA'S MUSLIM GOVERNMENT AND USE AIR STRIKES AGAINST THE SERBS US INVESTIGATORS IN KUWAIT PLAN TO QUESTION 16 PEOPLE INCLUDING 11 IRAQI NATIONALS ACCUSED OF PLOTTING TO KILL FORMER PRESIDENT BUSH WHEN HE VISITED KUWAIT LAST MONTH IF THE US FINDS THAT SADDAM HUSSEIN ORDERED AN ASSASSINATION A CLINTON SPOKESMAN SAID APPROPRIATE ACTION WILL BE TAKEN AGAINST BAGHDAD ISRAELI INTERIOR MINISTER DERI RESIGNED IN A DISPUTE OVER PRIME MINISTER RABIN'S REFUSAL TO REMOVE LEFTIST EDUCATION MINISTER ALONI FROM HER JOB RABIN MEANWHILE PROPOSED A CABINET SHUFFLE TO SAVE HIS COALITION OPPOSITION PARTIES HAVE THREATENED TO BRING DOWN THE GOVERNMENT IN A NOCONFIDENCE VOTE PALESTINIAN NEGOTIATORS CRITICIZED ISRAEL'S OFFER FOR LIMITED SELFRULE IN THE OCCUPIED WEST BANK AND GAZA STRIP BUT STOPPED SHORT OF REJECTING THE PROPOSAL THE HEAD OF THE PALESTINIAN DELEGATION TO MIDEAST PEACE TALKS SAID IN TUNIS THAT THE OFFER HAD SOME GOOD POINTS BUT NOT ENOUGH FOR US TO ACCEPT THE PROPOSAL AS IT STANDS THOUSANDS OF COMMUNISTS MARCHED IN MOSCOW TO MARK RUSSIA'S ANNUAL CELEBRATION OF VICTORY OVER NAZI GERMANY AND TO DENOUNCE YELTSIN'S MARKET REFORMS THOUGH THE RALLY WAS THE LARGEST YET AGAINST THE PRESIDENT THERE WAS NO REPEAT OF MAY DAY CLASHES A WEEK EARLIER IN WHICH ONE POLICEMAN WAS KILLED AND OVER 500 WERE HURT CLINTON UNVEILED A CAMPAIGNFINANCE PROPOSAL FRIDAY THAT INCLUDES SPENDING CAPS PARTIAL PUBLIC FUNDING OF HOUSE AND SENATE RACES AND CURBS ON LOBBYISTS THE PLAN HOWEVER FACES A FIGHT IN CONGRESS SENATE REPUBLICANS INTEND TO FILIBUSTER THE PROPOSAL SAYING IT IS WRONG FOR TAXPAYERS TO SUBSIDIZE POLITICIANS JAPANESE UN PEACEKEEPERS URGED THEIR GOVERNMENT TO PULL THEM OUT OF CAMBODIA BEFORE OTHERS IN THEIR 75MEMBER POLICE UNIT ARE KILLED BY REBELS THE PEACEKEEPERS MET IN PHNOM PENH WITH JAPAN'S HOME AFFAIRS MINISTER A JAPANESE POLICEMAN WAS KILLED LAST WEEK AND A CIVILIAN WORKING WITH THE UN MISSION WAS FATALLY SHOT LAST MONTH PRIME MINISTER MAJOR MAY BE FORCED TO RESHAPE BRITAIN'S GOVERNMENT AFTER A CRUSHING DEFEAT FOR HIS CONSERVATIVE PARTY IN LOCAL ELECTIONS AND A PARLIAMENTARY BYELECTION THURSDAY'S RESULTS DIDN'T IMMEDIATELY THREATEN THE GOVERNMENT'S SURVIVAL BUT THE TORIES' MAJORITY IN THE HOUSE OF COMMONS WAS CUT A JUDGE IN ALABAMA SPARED OUSTED GOV GUY HUNT FROM A PRISON TERM FRIDAY ORDERING HIM TO PAY 211000 AND PERFORM 1000 HOURS OF COMMUNITY SERVICE FOR A FELONY ETHICS CONVICTION THE REPUBLICAN WHO WAS FOUND GUILTY LAST MONTH OF TAKING MONEY FROM A 1987 INAUGURATION FUND ALSO WAS PLACED ON FIVE YEARS' PROBATION GUNMEN IN PARAGUAY ATTACKED A BROADCAST STATION SYMPATHETIC TO THE OPPOSITION AND TWO PEOPLE WERE REPORTED KILLED HOURS BEFORE POLLS OPENED FOR A PRESIDENTIAL VOTE NO ONE WAS INJURED IN THE ASSAULT ON THE TV AND RADIO STATION RESULTS WEREN'T YET AVAILABLE FROM THE BALLOTING FOR THE NATION'S FIRST CIVILIAN LEADER IN FOUR DECADES POPE JOHN PAUL II SPOKE OUT AGAINST MAFIA BOSSES DURING A TRIP TO THE SICILIAN CITY OF AGRIGENTO THE PONTIFF VISIBLY ANGRY DECLARED THAT THE PEOPLE OF SICILY HAVE THE RIGHT TO LIVE WITHOUT MURDER VICTIMS WITHOUT FEARS WITHOUT THREATS A US ENVOY ARRIVED IN UKRAINE AND SAID HE BROUGHT GOOD IDEAS TO SMOOTH RELATIONS BUT NEITHER PRESIDENT KRAVCHUK NOR PRIME MINISTER KUCHMA WAS DUE TO MEET WITH THE ENVOY STROBE TALBOTT THE US HAS INSISTED THAT UKRAINE FULFILL A PLEDGE TO BECOME A NUCLEARFREE STATE AND CLINTON REFUSED TO MEET WITH KUCHMA LAST MONTH 9305100017 930510 FOREIGN EXCHANGE SECOND DANISH VOTE ON MONETARY UNION IN EUROPE ISN'T EXPECTED TO SPUR CRISIS BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK A FEW EUROPEAN CURRENCIES ARE LIKELY TO COME UNDER PRESSURE AHEAD OF DENMARK'S SECOND REFERENDUM ON THE MAASTRICHT TREATY ON EUROPEAN MONETARY UNION NEXT WEEK BUT ANALYSTS SAY CURRENCY MARKETS WILL BE PLACID IN CONTRAST TO LAST YEAR'S UPHEAVALS DANISH VOTERS WILL TAKE THEIR SECOND SHOT MAY 18 AT THE MAASTRICHT TREATY UNDER WHICH EUROPEAN COMMUNITY MEMBERS WOULD COORDINATE MONETARY AND FISCAL POLICIES TRADERS HAVE NOTICED THAT DANISH OPINION POLLS ARE TRACKING LAST YEAR'S PATTERN IN WHICH MOST VOTERS EXPRESSED SUPPORT FOR THE TREATY UNTIL THE LAST MINUTE BUT THE MAJORITY SHRANK AS THE VOTE NEARED THAT PROBABLY WILL PRODUCE MILD JITTERS LATER IN THE WEEK THEY SAY BENEFITING GERMAN MARKS AND SWISS FRANCS WITH MINIMAL EFFECT ON THE DOLLAR FOR THE PAST TWO WEEKS THE DOLLAR HAS BEEN STALLED AGAINST THE MARK FOR LACK OF NEW ECONOMIC INFORMATION AND SLIPPING AGAINST THE YEN BECAUSE OF JAPAN'S STUBBORNLY WIDE TRADE SURPLUSES LATE FRIDAY IN NEW YORK THE DOLLAR WAS AT 15838 MARKS AND 11030 YEN COMPARED WITH 15850 MARKS AND 11110 YEN AT THE END OF THE PREVIOUS WEEK ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 15835 MARKS AND AT 11035 YEN WITH THE PROSPECT OF TRUE EUROPEAN MONETARY UNION RELEGATED TO THE DISTANT FUTURE ANALYSTS SAY THE MAASTRICHT TREATY HAS LOST MUCH OF ITS RELEVANCE TO CURRENCY PLAYERS THE MARKETS HAVE PRETTY MUCH GIVEN UP ON THE IDEA OF A QUICK MOVE TO MONETARY UNION IN EUROPE TREATY OR NO TREATY SAYS RONALD LEVEN CURRENCY STRATEGIST AT MORGAN GUARANTY TRUST CO DOMESTIC POLITICAL ISSUES IN COUNTRIES WITH WEAKER CURRENCIES AND DOMESTIC ECONOMIC ISSUES IN OTHERS ARE PLAYING A GREATER ROLE IN THOSE CURRENCIES' PROSPECTS ANALYSTS SAY A NO VOTE WOULD HAVE GREATER IMPACT THAN APPROVAL THE FIRST THING IS THEY'LL SELL THE DANISH KRONE MR LEVEN SAYS SPILLOVER SELLING OF SWEDISH KRONE AND BELGIAN FRANCS WOULD FOLLOW THE SPANISH PESETA AND PORTUGUESE ESCUDO ARE ALSO VULNERABLE SAYS KEVIN LOGAN CHIEF ECONOMIST AT SWISS BANK CORP IN NEW YORK THOSE CURRENCIES ARE OVERVALUED BECAUSE OF HIGHER DOMESTIC INFLATION HE SAYS AS A RESULT THEY'RE MORE LIKELY TO BE DEVALUED IN THE FACE OF FADING EUROPEAN COMMITMENT TO JOINT MONETARY AND FISCAL POLICY BOTH THE PESETA AND ESCUDO WERE DEVALUED BY 6 IN NOVEMBER DURING EUROPE'S MONETARY CRISIS COMING SPANISH ELECTIONS REINFORCE THE PESETA'S VULNERABILITY ANALYSTS SAY THE LEADER OF THE RIGHTOFCENTER OPPOSITION PARTY PARTIDO POPULAR HAS EMPHASIZED THE NEED TO CUT INTEREST RATES IN ORDER TO BOOST JOB GROWTH SAYS MICHAEL O'HANLON SENIOR INTERNATIONAL ECONOMIST AT KIDDER PEABODY & CO IN LONDON BUT THAT GOAL COLLIDES WITH EFFORTS TO DEFEND THE PESETA WHICH DEPENDS ON FIRM SPANISH RATES TO HOLD ITS GROUND WITHIN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM IF THE PARTIDO POPULAR IS VOTED INTO POWER IT IS THOUGHT THAT IT WILL LET THE CURRENCY GO MR O'HANLON SAYS THAT THREAT OVERSHADOWS THE DANISH VOTE HE SAYS THE DANGER IS NOT THE DANISH REFERENDUM ANYMORE HE SAYS IT'S DOMESTICALLY IN SPAIN ANY DAMAGE TO THE PESETA WOULD HURT THE ESCUDO HE ADDS BECAUSE PORTUGAL WOULD NOT ALLOW A STRONGER CURRENCY TO SHIFT THE TRADE BALANCE BETWEEN THE TWO IN SPAIN'S FAVOR THE FRENCH FRANC HAS BEEN SO STRONG IN RECENT WEEKS THAT ANALYSTS EXPECT MINIMAL IMPACT FROM THE VOTE WHICHEVER WAY IT GOES IN THEORY A YES VOTE SHOULD HELP STERLING AND THE LIRA WHICH WERE WITHDRAWN FROM THE ERM LAST SUMMER IF THE DANES VOTE FOR THIS THING THERE'S A GREATER CHANCE DOWN THE ROAD THAT STERLING OR THE LIRA MIGHT REATTACH THEMSELVES AT A NEW LOWER LEVEL SAYS MR LOGAN OF SWISS BANK BUT THE LIRA WOULD REJOIN THE ERM NO SOONER THAN THE END OF THIS YEAR AND STERLING IN 1994 AT THE EARLIEST ANALYSTS AGREE MEANWHILE ITALY'S POLITICAL TURMOIL AND BRITAIN'S IMPROVING ECONOMIC PROSPECTS WILL PLAY THE KEY ROLE IN THEIR CURRENCIES' PERFORMANCE THEY SAY 9305100016 930510 BUSINESS BRIEF QUAKER STATE CORP TRUCKLITE WON'T BE SOLD FOLLOWING IMPROVED RESULTS QUAKER STATE CORP OIL CITY PA SAID IT TOOK ITS TRUCKLITE CO UNIT OFF THE BLOCK AFTER RECEIVING OFFERS IT DEEMED TOO LOW AND BECAUSE THE SUBSIDIARY PRODUCED IMPROVED RESULTS THE PRODUCER AND MARKETER OF BRANDED MOTOR OILS AND LUBRICANTS SAID THE DECISION WAS BASED ON A REVISED VIEW OF THE SUBSIDIARY'S PROSPECTS IN LIGHT OF ITS FIRSTQUARTER RESULTS TRUCKLITE WHICH MAKES SAFETY AND INTERIOR LIGHTS FOR TRUCKS AND AUTOMOBILES HAD A FIRSTQUARTER OPERATING PROFIT OF 17 MILLION ON SALES OF 209 MILLION COMPARED WITH AN OPERATING LOSS OF 13 MILLION ON SALES OF 145 MILLION IN THE YEAREARLIER PERIOD TRUCKLITE ORIGINALLY WAS PUT UP FOR SALE IN JANUARY BECAUSE QUAKER STATE DIDN'T CONSIDER IT A CORE BUSINESS 9305100015 930510 BUSINESS BRIEF MICROTEL FRANCHISE & DEVELOPMENT COMPANY EXPECTS TO REPORT LOSS FOR LATEST FISCAL YEAR MICROTEL FRANCHISE & DEVELOPMENT CORP ROCHESTER NY SAID IT EXPECTS TO REPORT A LOSS OF 20 CENTS TO 25 CENTS A SHARE FOR THE YEAR ENDED MARCH 31 COMPARED WITH A LOSS OF 661907 OR 32 CENTS A SHARE A YEAR EARLIER OUR EARNINGS FOR THE NEXT TWO YEARS WILL CONTINUE TO INCLUDE THE AMORTIZATION OF THE ACQUISITION OF HUDSON HOTELS WHICH FOR THE NINE MONTHS ENDED MARCH 31 WAS ALMOST 1 MILLION E ANTHONY WILSON CHIEF EXECUTIVE OFFICER SAID ONCE THE AMOUNT IS TOTALLY AMORTIZED WE WOULD EXPECT EARNINGS TO TURN POSITIVE A SPOKESWOMAN SAID THE COMPANY HAS 15 MILLION LEFT TO AMORTIZE AND COULD POST A PROFIT WITHIN THE TWOYEAR PERIOD 9305100014 930510 HEARD ON THE STREET MANY STOCKS LABELED THE NEXT MICROSOFT' HAVEN'T MEASURED UP TO THE HYPE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL THE LABEL IS THROWN AROUND ON WALL STREET EVEN MORE RECKLESSLY THAN USUAL THESE DAYS IT SEEMS THAT ANY INITIAL PUBLIC STOCK OFFERING THAT INVOLVES A FLEDGLING HIGHTECH COMPANY IS TOUTED AS THE 1990S ANSWER TO THE LEGENDARY MICROSOFT CORP STOCK OFFERING OF 1986 BROKERS LOVE TO WHISPER THE PHRASE TO STIR UP EXCITEMENT BUT MORE OFTEN THAN NOT THE EXCITEMENT TURNS TO DISAPPOINTMENT FOR GULLIBLE INVESTORS REMEMBER NETWORTH THE COMPUTER NETWORKING COMPANY'S STOCK DOUBLED ON ITS FIRST TRADING DAY LAST YEAR AS MANY BROKERS URGED SMALL INVESTORS NOT TO MISS OUT ON ANOTHER MICROSOFT THE TALK SUBSIDED QUICKLY HOWEVER WHEN NETWORTH PLUNGED 43 IN A SINGLE DAY LAST MONTH ON A NEGATIVE EARNINGS ANNOUNCEMENT THE PRICE HASN'T RECOVERED SINCE MERRILL LYNCH'S MICHELE PRESTON IS STILL TRYING TO LIVE DOWN THE DAY IN OCTOBER 1991 WHEN SHE CALLED SOFTWARE MAKER BORLAND INTERNATIONAL THE MICROSOFT OF THE 1990S BORLAND AND MICROSOFT WILL EMERGE AS THE LEADERS IN THE SPREADSHEET MARKET PREDICTED THE WELLREGARDED ANALYST THEN AT COWEN & CO SHORTLY AFTER MS PRESTON'S PRONOUNCEMENT BORLAND WAS SWAMPED BY PRODUCT DELAYS THE STOCK DROPPED A WHOPPING 73 IN 1992 THOUGH IT IS UP 17 SO FAR THIS YEAR THE NEXT SOMETHING SYNDROME AS STAR MONEY MANAGER PETER LYNCH CALLS IT IS ONE OF WALL STREET'S CLASSIC TRAPS YOUNG COMPUTER COMPANIES USED TO BE CALLED THE NEXT IBM FOR EXAMPLE THESE DAYS THAT LABEL GETS SLAPPED ON STRUGGLING BLUE CHIPS IN MOST CASES THE NEXT COMPANY IS HARDLY A WORTHY SUCCESSOR THIS HAS BEEN GOING ON FOR THE 26 27 YEARS I'VE BEEN IN THE BUSINESS SAYS STUART ROBBINS RESEARCH DIRECTOR AT DONALDSON LUFKIN & JENRETTE IN NEW YORK THE NAMES JUST CHANGE SOMETIMES IT'S A LEGITIMATE COMPARISON BUT LOTS OF TIMES IT'S NOT EVEN ANALYSTS WHO USE THE NEXT MICROSOFT PHRASE ADMIT THAT IT IS THROWN AROUND TOO MUCH IT'S OVERWORKED CONCEDES PETER ROGERS OF ROBERTSON STEPHENS & CO WHO IN NOVEMBER CONTRIBUTED TO THE OVERWORK BY LABELING BRODERBUND SOFTWARE THE MICROSOFT OF CONSUMER SOFTWARE IN SOFTWARE IT'S A WAY OF SAYING THE CADILLAC THE MERCEDES PEOPLE UNDERSTAND WHAT THAT MEANS SAYS MR ROGERS BUT THERE'S ONLY ONE MICROSOFT AND THERE WILL ALWAYS BE ONLY ONE MICROSOFT MOST OF THE YOUNG COMPANIES THAT GET THE MICROSOFT LABEL DON'T HAVE NEARLY THE GROWTH OR MARKET DOMINANCE OF MICROSOFT HE SAYS AS FOR HIS BRODERBUND PRAISE MR ROGERS HASN'T HAD TO EAT ALL OF HIS WORDS JUST YET THOUGH THE HIGHFLYING STOCK HAS DECLINED FROM ITS 52WEEK HIGH OF 50 1/4 TO CLOSE AT 35 1/2 FRIDAY THE LATEST STOCK TO RIDE THE MICROSOFT MAGIC CARPET IS 3DO CO A MULTIMEDIA STARTUP COMPANY THAT HAS EVERYTHING AN INVESTOR WOULD WANT EXCEPT REVENUE PROFIT OR EVEN A PRODUCT TO SELL IN ITS FIRST FOUR TRADING DAYS LAST WEEK 3DO JUMPED 57 TO 23 3/8 FROM ITS OFFERING PRICE OF 15 WHY THE COMPANY IS IN A HOT INDUSTRY AND HAS DONE A WORLDCLASS JOB OF MARKETING ITSELF THIS MIGHT BE ANOTHER MICROSOFT IN THE MAKING ASSERTS TIM BAJARIN A COMPUTER CONSULTANT AT CREATIVE STRATEGIES INC IN SANTA CLARA CALIF HE CONCEDES THERE'S NO GUARANTEE OF SUCCESS FOR 3DO'S ALLINONE HOMEENTERTAINMENT MACHINE CALLED THE INTERACTIVE MULTIPLAYER BUT HE SAYS THE MACHINE COULD DOMINATE HOMES AS MICROSOFT HAS THE OFFICE THE QUESTION IS WHO HAS THE POTENTIAL OF BECOMING THE NEXT MICROSOFT AT THIS POINT IT'S 3DO MORE SKEPTICAL MARKET WATCHERS JUST SHAKE THEIR HEADS WHEN THEY HEAR SUCH PRONOUNCEMENTS FIFTEEN YEARS AGO IT WAS THE NEXT XEROX' SAYS MARKET ANALYST LASZLO BIRINYI OF BIRINYI ASSOCIATES INC NEW YORK THAT WAS SORT OF THE CLICHE FOR SMALL COMPANIES IN EMERGING AREAS THAT HAD A LOCK ON A NEW BUSINESS BUT THE NEXT HYPE MR BIRINYI SAYS IS A BUZZWORD WITH ABOUT AS MUCH VALUE AS ADVERTISING HAS ONE REASON 3DO STOCK IS SO SPECULATIVE IS THAT THE SAN MATEO CALIF COMPANY IS A COMPLETE STARTUP SITUATION NO ONE KNOWS WHETHER A BIG MARKET WILL ACTUALLY DEVELOP FOR THE TECHNOLOGY AND IF IT DOES WHETHER 3DO OR SOME BIGGER COMPETITOR LIKE NINTENDO LTD WILL DOMINATE IT PROFESSIONAL INVESTORS WILL FLEE THE STOCK IN DROVES IF 3DO FAILS TO COME OUT WITH ITS TECHNOLOGY ON SCHEDULE THERE IS OF COURSE A SLIM CHANCE THAT ONE OF THESE HOT HIGHTECH COMPANIES WILL INDEED RIVAL MICROSOFT THE REDMOND WASH SOFTWARE COMPANY THAT HAS WATCHED ITS STOCK SOAR 37FOLD SINCE ITS IPO ON MARCH 13 1986 MICROSOFT CLOSED FRIDAY AT 87 COMPARED WITH AN OFFERING PRICE OF 233 ADJUSTED FOR NINE STOCK SPLITS BUT THE CHANCE ISN'T MUCH MORE LIKELY THAN WINNING THE LOTTERY INVESTORS WHO FALL FOR THE NEXTMICROSOFT PITCH SHOULD REMEMBER TWO THINGS FIRST IPO EXPERTS SAY IT IS ANYBODY'S GUESS WHETHER ANY OF TODAY'S IPOS ACTUALLY WILL BLOSSOM AS MICROSOFT DID AND EVEN IF THEY DO THERE'S TIME TO BUY THEM LATER MORE IMPORTANT MICROSOFT ITSELF WAS ALREADY A POWERHOUSE IN THE PERSONALCOMPUTER INDUSTRY WHEN IT DID ITS IPO UNLIKE THE MANY MICROSOFT PRETENDERS THAT HAVE NO EARNINGS OR REVENUES TO SPEAK OF WHEN THEY GO PUBLIC PART OF THE REASON FOR ALL THE NEXT TALK IS THAT SO MANY INVESTORS FEEL THEY MISSED OUT ON MAKING A FORTUNE ON MICROSOFT MANY PEOPLE WHO DIDN'T BUY MICROSOFT OR WHO OWNED IT FOR ONLY PART OF ITS RUN ARE STILL KICKING THEMSELVES SAYS ONE IPO ANALYST THESE PEOPLE HAVE CONVINCED THEMSELVES THAT IT IS NOT A MISTAKE THEY CAN MAKE AGAIN SO THEY GET SUCKED IN MR LYNCH THE FORMER MANAGER OF FIDELITY INVESTMENTS' MAGELLAN FUND ONCE WROTE THAT HE AVOIDS THE STOCK OF ANY COMPANY THAT'S BEEN TOUTED AS THE NEXT IBM THE NEXT MCDONALD'S THE NEXT INTEL OR THE NEXT DISNEY ETC IN MY EXPERIENCE THE NEXT OF SOMETHING ALMOST NEVER IS ON BROADWAY THE BESTSELLER LIST THE NATIONAL BASKETBALL ASSOCIATION OR WALL STREET ACCORDING TO MR LYNCH THERE'S NO REASON TO FRANTICALLY BUY AN IPO IF A COMPANY REALLY IS THAT GOOD THERE IS PLENTY OF TIME TO BUY IT LATER AND BENEFIT FROM YEARS OF PROFITS HIS FAVORITE EXAMPLE IS HIGHFLYING WALMART STORES WHICH WENT PUBLIC IN 1970 BECAUSE WALMART IS A FUNDAMENTALLY SOUND COMPANY INVESTORS WHO BOUGHT THE STOCK EVEN 10 YEARS AFTER THE IPO WOULD STILL HAVE MADE 30 TIMES THEIR MONEY BY THE END OF 1991 HE SAYS AND THEY WOULDN'T HAVE HAD TO WORRY ABOUT THE NEXT HYPE IT'S LIKE COMPARING EVERYONE TO MUHAMMAD ALI IN BOXING SAYS DONALDSON LUFKIN'S MR ROBBINS THERE WAS ONE MUHAMMAD ALI ANY TIME I HEAR SOMEBODY TELL ME THE COMPARISON IS WALMART DISNEY OR MICROSOFT YOU JUST HAVE TO BE WARY SEE RELATED ARTICLE OTC FOCUS BUT SOME REAL GEMS ARE OVERLOOKED WSJ MAY 10 1993 MUTUAL ADMIRATION VANGUARD GROUP CHAIRMAN JOHN C BOGLE IS THE MUTUAL FUND INDUSTRY'S BIGGEST ADVOCATE OF INDEX FUNDS WHICH DON'T ACTIVELY TRY TO PICK STOCKS BUT INSTEAD SIMPLY MIMIC A MARKET AVERAGE LIKE THE STANDARD & POOR'S 500STOCK INDEX BUT VANGUARD ADVISER A NEWSLETTER CALCULATES THAT MR BOGLE HAS MOST OF HIS OWN MONEY IN ACTIVELY MANAGED FUNDS ESPECIALLY VANGUARD/WINDSOR FUND MR BOGLE HAS 118 MILLION IN 22 VANGUARD FUNDS INCLUDING 23 MILLION IN WINDSOR AND ABOUT 15 MILLION IN US STOCK INDEX FUNDS ACCORDING TO THE BOSTONBASED NEWSLETTER VANGUARD ADVISER WHICH HAS A TESTY RELATIONSHIP WITH THE VALLEY FORGE PA FUND GROUP AND RIGHT NOW IS DEFENDING A TRADEMARK LAWSUIT FILED BY VANGUARD BASED ITS ESTIMATES ON RECENT VANGUARD PROXY STATEMENTS IS MR BOGLE GOING LIGHT ON INDEX FUNDS NO WAY INSISTS A VANGUARD SPOKESMAN MR BOGLE HAD BEEN INVESTING IN WINDSOR SINCE THE 1950S WHILE VANGUARD DIDN'T INTRODUCE ITS FIRST INDEX FUND UNTIL 1976 AS A RESULT MR BOGLE'S WINDSOR HOLDINGS HAVE ENJOYED MANY MORE YEARS OF STOCK MARKET GROWTH THE SPOKESMAN ADDS THAT SHIFTING SOME OF THE WINDSOR HOLDINGS TO AN INDEX FUND WOULD TRIGGER HEAVY TAXES ROBERT MCGOUGH 9305100013 930510 BUSINESS BRIEF GREYHOUND LINES INC UNION MEMBERS RATIFY PACT AFTER LONG LABOR STRUGGLE ENDING THEIR LONG LABOR STRUGGLE WITH GREYHOUND LINES INC AMALGAMATED TRANSIT UNION MEMBERS RATIFIED A SIXYEAR CONTRACT WITH THE DALLAS BUS COMPANY BY A VOTE OF 483 TO 368 MEMBERS OF THE AMALGAMATED COUNCIL OF GREYHOUND LOCAL UNIONS THE ATU'S BARGAINING UNIT VOTED TO ACCEPT THE PACT HAMMERED OUT BY UNION AND COMPANY EXECUTIVES LAST MONTH ALTHOUGH AN ESTIMATED 5800 ATU MEMBERS WALKED OFF THE JOB AT GREYHOUND IN MARCH 1990 UNION OFFICIALS SAID ONLY ATU MEMBERS WHO CONTINUED PAYING DUES THROUGHOUT THE STRIKE WERE ELIGIBLE TO VOTE ON THE NEW ACCORD THE CONTRACT CALLS FOR 22 MILLION IN BACK PAY FOR STRIKERS AND A RECALL OF A MINIMUM OF 550 STRIKERS IN ADDITION TO THE 1500 UNION MEMBERS WHO RETURNED TO WORK DURING THE COURSE OF THE STRIKE THE SETTLEMENT STILL REQUIRES THE APPROVAL OF THE FEDERAL BANKRUPTCY JUDGE WHO OVERSAW GREYHOUND'S REORGANIZATION AND A FEDERAL ADMINISTRATIVE LAW JUDGE WHO HAS BEEN HEARING AN UNFAIR LABOR PRACTICES CASE FILED AGAINST GREYHOUND BY THE NATIONAL LABOR RELATIONS BOARD'S GENERAL COUNSEL 9305100012 930510 BUSINESS BRIEF PPG INDUSTRIES INC WORKERS AT WINDSHIELD PLANT STRIKE AFTER TALKS DEADLOCK PPG INDUSTRIES INC SAID 260 WORKERS AT ITS GREENSBURG PA AUTOMOTIVE REPLACEMENT WINDSHIELD PLANT WENT ON STRIKE THE ALUMINUM BRICK AND GLASS WORKERS INTERNATIONAL UNION CALLED THE STRIKE SATURDAY AFTER PITTSBURGHBASED PPG DECLARED AN IMPASSE IN CONTRACT TALKS AND SAID IT WOULD IMPLEMENT TERMS OF ITS LAST OFFER THE COMPANY SAID THE ISSUES IN THE TALKS INCLUDE HEALTH CARE WAGES AND PENSIONS BUT DECLINED TO ELABORATE UNION OFFICIALS COULDN'T BE REACHED FOR COMMENT THE UNION'S CONTRACT FOR THE GREENSBURG PLANT EXPIRED MARCH 19 PPG ALSO SAID IT HAS BEEN NOTIFIED THAT UNION LOCALS AT ITS CREIGHTON PA AUTOMOTIVE GLASS PLANT AND FORD CITY PA COMMERCIAL GLASS PRODUCTS PLANTS WILL TERMINATE DAYTODAY EXTENSIONS OF THEIR CONTRACTS THURSDAY NIGHT THE CREIGHTON CONTRACT WHICH COVERS 270 WORKERS EXPIRED FEB 16 WHILE THE CONTRACT COVERING 300 WORKERS AT FORD CITY LAPSED MARCH 1 9305100011 930510 HONG KONG INDUSTRIAL OUTPUT HONG KONG HONG KONG'S LEVEL OF INDUSTRIAL PRODUCTION ROSE 15 IN THE FOURTH QUARTER OF 1992 FROM A YEAR EARLIER GOVERNMENT DATA RELEASED FRIDAY SHOW ON A YEARTOYEAR BASIS THE LATEST FIGURE FOLLOWED A 3 RISE IN THE THIRD QUARTER A 33 RISE IN THE SECOND QUARTER AND LITTLE CHANGE IN THE FIRST QUARTER PRODUCTION FOR ALL 1992 WAS UP 16 FROM 1991 9305100010 930510 MELLON TO REDEEM DEBENTURES PITTSBURGH MELLON BANK CORP SAID IT WILL REDEEM 5 MILLION OF ITS 33 MILLION OUTSTANDING IN 86 DEBENTURES DUE 2009 HOLDERS OF THE DEBENTURES TO BE REDEEMED WILL BE CHOSEN BY LOT AND WILL RECEIVE 100 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST TO THE JUNE 15 REDEMPTION DATE 9305100009 930510 GETTY TO ALTER BLEND OF GASOLINE TO SETTLE DISPUTE IN NEW JERSEY NEW YORK GETTY PETROLEUM CORP AGREED TO SWITCH TO NONETHANOL BLENDED GASOLINE AT 224 SERVICE STATIONS IN NEW JERSEY TO SETTLE A DISPUTE WITH STATE ENVIRONMENTAL OFFICIALS GETTY BEGAN SELLING ETHANOLBLENDED GASOLINE SIX MONTHS AGO TO COMPLY WITH FEDERAL CLEAN AIR ACT STANDARDS DESIGNED TO REDUCE CARBON MONOXIDE IN THE AIR BUT NEW JERSEY ENVIRONMENTAL OFFICIALS PROHIBIT ETHANOLBLENDED GASOLINE FROM MAY 1 THROUGH SEPT 15 A PERIOD WHEN CARBON MONOXIDE POLLUTION IS NOT A PROBLEM THE STATE SAYS ETHANOL A FORM OF ALCOHOL CAN CAUSE INCREASES IN NITROGEN OXIDE EMISSIONS WHICH CONTRIBUTE TO SMOG GETTY HAD TAKEN THE DISPUTE TO FEDERAL COURT LAST MONTH AFTER NEW JERSEY OFFICIALS ORDERED THE GASOLINE RETAILER BASED IN JERICHO NY TO CHANGE ITS GASOLINE CONTENT GETTY HAD SUED ASSERTING THAT STATE REGULATIONS WERE IN CONFLICT WITH FEDERAL RULES GETTY SECURED A TEMPORARY RESTRAINING ORDER BLOCKING THE STATE FROM ENFORCING THE ORDER UNTIL THURSDAY AT THE HEARING A FEDERAL DISTRICT JUDGE UPHELD THE STATE RULE AND THE PARTIES AGREED TO EXTEND THE DEADLINE FOR THE CHANGE UNTIL TOMORROW GETTY WON'T APPEAL THE RULING WE BELIEVE ETHANOL IS GOOD IN THE SUMMER AND GREAT IN THE WINTER GETTY SENIOR VICE PRESIDENT ALVIN SMITH SAID TO SWITCH BACK AND FORTH IS A LOGISTICAL PROBLEM WE'LL DO IT BUT WE THINK IT'S RIDICULOUS HE PUT THE SWITCHOVER COST AT LESS THAN 50000 PUMP PRICES WOULD BE UNAFFECTED HE SAID OTHER GASOLINE MARKETERS IN NEW JERSEY HAVE BEEN USING A DIFFERENT COMPOSITION THAT DOESN'T HAVE TO BE CHANGED IN SUMMER A NEW JERSEY OFFICIAL SAID MR SMITH SAID A RELATED SUIT FILED BY GETTY IS PENDING IN NEW YORK STATE WHICH ALLOWS FOR WAIVERS ON THE USE OF ETHANOL IN GASOLINE DURING SUMMER MONTHS 9305100007 930510 PRIMERICA TO CUT UP TO 1500 WORKERS FROM STAFF OF NEW BROKERAGE GIANT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRIMERICA CORP IS LIKELY TO DISMISS AS MANY AS 1500 EMPLOYEES OF THE NEW BROKERAGE GIANT SMITH BARNEY SHEARSON INC BEFORE YEAR END PEOPLE FAMILIAR WITH THE MATTER SAID SMITH BARNEY SHEARSON EXECUTIVES STRESS THAT THE FINAL NUMBER OF DISMISSALS HASN'T YET BEEN DETERMINED AND WON'T BE SET UNTIL LATER THIS YEAR BUT THE NUMBER IS NOW EXPECTED TO BE AT LEAST 1200 AND COULD RISE AS HIGH AS 1500 EXCEEDING THE ROUGHLY 1000 ANTICIPATED IMMEDIATELY AFTER THE AGREEMENT IN MARCH TO MERGE AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS INC UNIT AND PRIMERICA'S SMITH BARNEY HARRIS UPHAM & CO UNIT THE PEOPLE SAID THE COMPANIES HAVE 26500 EMPLOYEES MAKING THE COMBINATION THE NATION'S SECOND LARGEST BROKERAGE FIRM AFTER MERRILL LYNCH & CO IN RECENT WEEKS SOME OPERATIONS PERSONNEL AT BOTH SHEARSON AND SMITH BARNEY WERE NOTIFIED THAT THEIR JOBS WILL BE TERMINATED THE LAYOFFS WILL PRIMARILY AFFECT EMPLOYEES IN THE BACK OFFICE OR TRADEPROCESSING UNITS AS WELL AS ADMINISTRATION PERSONNEL AND HUMAN RESOURCES THE NEARLY 11000 STOCKBROKERS OF SMITH BARNEY SHEARSON AREN'T LIKELY TO BE AMONG THOSE DISMISSED THERE ARE OBVIOUS REDUNDANCIES IN MANY OPERATIONS AREAS THAT WILL BE ELIMINATED A SMITH BARNEY SHEARSON EXECUTIVE SAID BUT THE COMPANY ALSO WILL BE BEEFING UP ITS STAFF IN CAPITAL MARKETS RESEARCH AND CORPORATE FINANCE THE EXECUTIVE SAID IT'S NOT LIKE A TYPICAL MERGER WHERE PERSONNEL IN EVERY DEPARTMENT IS SLASHED THE SMITH BARNEY SHEARSON EXECUTIVE ADDED NEVERTHELESS THE LAYOFFS WILL CURB THE REBOUND IN SECURITIESINDUSTRY EMPLOYMENT DURING THE PAST TWO YEARS AFTER DECLINING TO 209000 IN EARLY 1991 FROM A 1987 PEAK OF 262000 EMPLOYMENT HAS BOUNCED BACK TO 230000 ACCORDING TO THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP THOSE DISMISSED FROM SMITH BARNEY SHEARSON COULD HAVE A DIFFICULT TIME FINDING NEW JOBS IN THE BROKERAGE BUSINESS ANALYSTS SAY SNARING NEW JOBS AT OTHER SECURITIES CONCERNS MAY BE EASIER THAN IT WOULD HAVE BEEN A YEAR AGO BECAUSE SOME FIRMS ARE HIRING SAID JEFFREY SCHAEFER RESEARCH CHIEF AT THE TRADE GROUP BUT IT'S CERTAINLY NOT AN EASY THING TO DO GIVEN THAT FIRMS ARE STILL WATCHING COSTS VERY CLOSELY DESPITE TWO YEARS OF RECORD PROFITS IN MARCH PRIMERICA AGREED TO BUY SHEARSON'S BROKERAGE OPERATIONS FOR 1 BILLION IN CASH AND SECURITIES THE TRANSACTION WHICH IS EXPECTED TO CLOSE IN JULY IS THE BIGGEST BROKERAGE CONCERN ACQUISITION EVER SURPASSING THE 11 BILLION MERGER IN 1988 OF CREDIT SUISSE FIRST BOSTON AND FIRST BOSTON INC THAT IS BECAUSE THE SHEARSON SALE INCLUDES AN EARNOUT PROVISION GRANTED TO AMERICAN EXPRESS THAT ENTITLES IT TO A PERCENTAGE OF SHEARSON'S FUTURE EARNINGS THE PROVISION IS EXPECTED TO BRING THE FINAL VALUE OF THE TRANSACTION TO ABOUT 115 BILLION SHEARSON'S BROKERAGE OPERATIONS SEPARATELY THE BROKERAGE OPERATIONS OF SHEARSON THAT PRIMERICA IS ACQUIRING AREN'T IN AS BAD A SHAPE AS SOME ANALYSTS BELIEVED PEOPLE FAMILIAR WITH SMITH BARNEY SHEARSON SAID SHEARSON'S BROKERAGE BUSINESS WHICH INCLUDES NEARLY 8500 BROKERS AND ASSETMANAGEMENT GROUP WHICH MANAGES ABOUT 55 BILLION IN CLIENT ASSETS POSTED 1992 OPERATING PROFIT OF 55 MILLION THE PEOPLE SAID THE OPERATING PROFIT FIGURE EXCLUDES LITIGATION REAL ESTATE AND DEBT EXPENSES THE PEOPLE SAID THOUGH THAT ISN'T WILDLY PROFITABLE THE OPERATING RESULTS AT SHEARSON ARE BETTER THAN WHAT SOME WALL STREET ANALYSTS HAD EARLIER BELIEVED IN 1992 SHEARSON LEHMAN BROTHERS WHICH INCLUDES THE LEHMAN BROTHERS TRADING AND INVESTMENTBANKING DIVISION OF SHEARSON POSTED A LOSS OF 116 MILLION BEFORE VARIOUS CHARGES SHEARSON LEHMAN'S OPERATING PROFIT WAS JUST 204 MILLION ABOUT HALF 1991'S OPERATING PROFIT OF 410 MILLION IN CONTRAST MANY WALL STREET RIVALS HAD RECORD EARNINGS IN 1992 AMID A BOOM IN STOCK AND BOND UNDERWRITING AND TRADING FOR INSTANCE MERRILL SHEARSON'S BIGGEST COMPETITOR REPORTED RECORD EARNINGS OF 894 MILLION SOME ANALYSTS NOW BELIEVE THAT SMITH BARNEY SHEARSON COULD EARN NET INCOME OF ABOUT 300 MILLION NEXT YEAR IF THE MARKETS REMAIN AS BUOYANT AS THIS YEAR THAT COULD ADD ABOUT 10 TO PRIMERICA'S EARNINGS A HIGHER PERCENTAGE THAN SOME EARLIER WALL STREET ESTIMATES 9305100006 930510 REGULATORS ASK MORE LOANS FOR LOWERINCOME HOUSING WASHINGTON GOVERNMENT REGULATORS ARE PUSHING THRIFT INSTITUTIONS TO MAKE MORE LOANS AVAILABLE FOR LOW AND MODERATEINCOME HOUSING JONATHAN FIECHTER ACTING DIRECTOR OF THE OFFICE OF THRIFT SUPERVISION WROTE ALL 1855 SAVINGS AND LOAN ASSOCIATIONS THAT THE AGENCY OVERSEES TO LAY OUT VARIOUS AFFORDABLEHOUSING EFFORTS THAT THE AGENCY PLANS TO BEGIN OR EXPAND OVER THE NEXT SIX MONTHS THE LETTER IS THE AGENCY'S FIRST DIRECT COMPREHENSIVE SIGNAL TO THE THRIFT INDUSTRY THAT STRONGER STEPS ARE NEEDED TO BOOST LENDING TO BUILDERS DEVELOPERS AND BUYERS FOR THE LOWER END OF HOUSING MARKET IT IS PART OF AN ACCELERATING EFFORT BY REGULATORS TO EMPHASIZE AFFORDABLE HOUSING AS THEY CRACK DOWN ON LENDING PRACTICES THAT ESPECIALLY DISCRIMINATE AGAINST LOWINCOME MINORITY PERSONS THE AGENCY WANTS TO SEND A MESSAGE THAT AFFORDABLE LENDING IS NOT NECESSARILY UNSAFE AND UNSOUND AND THAT LOANS FOR LOWINCOME HOUSING OFTEN DON'T ENTAIL INCREASED RISK AN AGENCY OFFICIAL SAID MR FIECHTER'S LETTER SAID THE AGENCY WILL REVIEW RISK CHARACTERISTICS OF AFFORDABLE HOUSING LOANS TO HELP ITS STAFF EVALUATE SUCH LENDING IT WILL ALSO DEVELOP SPECIAL TRAINING FOR EXAMINERS AND CONTINUE WORKING WITH OTHER FEDERAL REGULATORS TO SEE WHAT IT CAN DO TO ENCOURAGE MORE LOWINCOME LENDING HE SAID 9305100004 930510 PEPPERAND SALT IF YOU NEED REPAIRS PRESS ONE NOW IF YOU NEED BILLING PRESS TWO NOW IF YOU NEED CUSTOMER SERVICE PRESS THREE NOW YOU BETTER BELIEVE IT IF IT ISN'T A THREAT 9305100003 930510 EC COMMISSION PLAN ON DESIGN LAWS MUST DEAL WITH POLESAPART VIEWS BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL HINCKLEY ENGLAND TO DAVID MARRS THE THOUSANDS OF FENDERS HOODS AND OTHER AUTOBODY PARTS IN HIS FACTORY AT VENG LTD ARE LIKE ANY OTHER SPARE PARTS BE THEY LIGHT BULBS OR BUTTONS BUT TO EUROPE'S AUTO MAKERS EACH HOOD OR DOOR IS MORE LIKE A RENOIR AND MASS COPYING BY COMPANIES LIKE VENG THEY CLAIM AMOUNTS TO BLATANT PILFERING OF COSTLY AND PAINSTAKING DESIGN EFFORTS NO DIFFERENT FROM THE PIRATING OF VIDEOS OR THE BOOTLEG PUBLICATION OF A NOVEL IF INDEPENDENT COMPANIES ARE GIVEN FREE REIN TO MAKE SPARE PARTS FOR CARS IT COULD OPEN UP A PANDORA'S BOX IN WHICH EVERY KIND OF INTELLECTUAL PROPERTY RIGHT IS THREATENED SAYS JURGIN KROHER A LAWYER FOR BAYERISCHE MOTOREN WERKE AG INDUSTRIAL DESIGN RIGHTS SHOULD BE PROTECTED IN THE AUTOMOBILE INDUSTRY AS THE EUROPEAN COMMUNITY COMMISSION PREPARES A PROPOSAL TO HARMONIZE DESIGN LAWS THROUGHOUT THE COMMUNITY THE POLESAPART VIEWS OF PEOPLE LIKE MR MARRS AND MR KROHER HAVE ERUPTED INTO ONE OF THE EC'S MOST CONTENTIOUS BATTLES IN YEARS TROUBLED CAR MAKERS BESET BY FALLING SALES AND STIFF COMPETITION FROM JAPAN ARE FIGHTING TO MAINTAIN CERTAIN EXCLUSIVE RIGHTS IN THE COMMUNITY'S ENORMOUS MARKET IN REPLACEMENT CARBODY PARTS SPECIFICALLY THE DOORS FENDERS WHEELS AND OTHER PRODUCTS RESULTING FROM DESIGN WORK BUT CONSUMER GROUPS AND INSURANCE COMPANIES MEANWHILE WANT CHEAPER REPLACEMENT PARTS MADE BY INDEPENDENT MANUFACTURERS FREE MARKETERS AS WELL INSIST THAT REPLACEMENT AUTOBODY PARTS MUST BE ALLOWED TO CIRCULATE FREELY IN THE INTERESTS OF CONSUMERFRIENDLY COMPETITION AND THE THOUSANDS OF SMALL BUSINESSES IN THE AUTOSUPPLY SECTOR THE ISSUE OF DESIGN PROTECTION ENCOMPASSES EVERYTHING FROM TOASTERS TO TELEPHONES BUT ONLY IN AUTOMOTIVE CIRCLES HAS IT PROMPTED REAL DEBATE PARTLY BECAUSE THE MARKET IS SO HUGE THE TOTAL EC MARKET FOR SPARE CAR PARTS TOTALS SOME 47 BILLION AN ESTIMATED ONEFOURTH OF WHICH INVOLVES THE SORT OF PANELS AT ISSUE HERE THIS DISPUTE HOWEVER TRANSCENDS MERE ECONOMICS FOR WHEN IT COMES TO SPARE AUTOBODY PARTS THE PRINCIPLES OF DESIGN PROTECTION CLASH WITH THOSE OF THE EC'S SINGLE MARKET THE THEORY BEHIND INTELLECTUAL PROPERTY PROTECTION IS TO PREVENT COPYING THAT DEPRIVES DESIGNERS ARTISTS AND INVENTORS OF EXCLUSIVE BENEFIT FROM THEIR LABORS BASIC MECHANICAL AUTO PARTS AT ISSUE HERE THEY LACK THE LEVEL OF CREATIVITY REQUIRED FOR DESIGN PROTECTION BUT THE COMMUNITY'S INTERNAL MARKET IS FOUNDED ON A DEGREE OF STANDARDIZATION THAT REQUIRES SOME PRODUCTS TO HAVE BASIC SIMILARITIES A MAKER OF VACUUMCLEANER HOSES IN SPAIN MUST FOR EXAMPLE BE ABLE TO SELL HOSES IN GERMANY SO DIMENSIONS FOR THE HOSE FITTINGS MUST BE REASONABLY HARMONIZED BUT A REPLACEMENT BMW CAR DOOR MUST NOT ONLY FIT IT MUST ALSO MATCH THE ACCIDENTCRUMPLED DOOR IT REPLACES IN ORDER TO BE COMMERCIALLY VIABLE THAT IS WHERE THE QUARRELING BEGINS ONE OF MY SUPPLIERS IN SPAIN WAS SELLING SPARE PARTS TO SOMEONE IN HOLLAND SAYS MR MARRS BUT HIS DELIVERY TRUCK WAS CONFISCATED AT THE FRENCH BORDER BY FRENCH CUSTOMS AGENTS BECAUSE IT WAS CARRYING PARTS FOR RENAULTS AND PEUGEOTS AND WE'RE SUPPOSED TO HAVE A SINGLE MARKET HERE IN THE EC ADDING TO THE CONTROVERSY A STUDY COMPILED FOR THE COMMISSION BY THE LONDON SCHOOL OF ECONOMICS CONCLUDED THAT CONSUMER INTERESTS OUTWEIGH THOSE OF AUTO MAKERS ACCORDING TO PEOPLE INVOLVED IN SHAPING THE SOONTOBEANNOUNCED EC POLICY YET THE COMMISSION'S INDUSTRY SECTION HAS REFUSED TO MAKE THE REPORT PUBLIC FUELING CHARGES THAT THE COMMISSION IS BIASED TOWARD THE AUTO INDUSTRY A COMMISSION SPOKESWOMAN CALLED THE STUDY AN INTERNAL COMMISSION DOCUMENT THE COMMISSION OFFICIALS DIRECTLY RESPONSIBLE FOR DRAFTING A PROPOSAL REFUSE TO DISCUSS THE PROTECTION ISSUE PEOPLE FAMILIAR WITH THE DEBATE SAY A PROPOSAL TO THE 17 COMMISSIONERS IS LIKELY WITHIN THE NEXT FEW WEEKS BUT MEMBER STATES PRESSURED BY LOBBYISTS ARE SURE TO LAUNCH A DEBATE THE COMMISSION ITSELF APPEARS DIVIDED THE STUDY BY THE LONDON SCHOOL OF ECONOMICS WAS REQUESTED BY THE EC'S INDUSTRY DIRECTORATE WHICH SOURCES SAY HAS BEEN SYMPATHETIC TO CAR MAKERS BUT OTHER COMMISSION DEPARTMENTS SUCH AS COMPETITION AND SMALL BUSINESSES HAVE BEEN AT LOGGERHEADS WITH THE AUTO INDUSTRY THE SQUABBLE IS BEING WATCHED CLOSELY IN THE US WHERE IT IS LEGAL FOR INDEPENDENT MANUFACTURERS TO COPY AND SELL REPLACEMENT BODY PANELS FOR THREE DECADES THE US AUTO INDUSTRY HAS UNSUCCESSFULLY SOUGHT DESIGN PROTECTION OVER SUCH PANELS IF THE EC COMMISSION SIDES WITH THE AUTO MAKERS US LEGISLATION WOULD SURELY BE REVIVED IN CONGRESS THE ISSUE MOREOVER IS SEEN AS A SIGNAL OF WHETHER THE EC IS WILLING TO ADOPT POLICIES SPECIFICALLY DESIGNED TO HELP ITS AILING AUTO INDUSTRY BRITAIN'S DESIGNPROTECTION LAW ALONE AMONG EC COUNTRIES DOESN'T COVER PRODUCTS THAT MATCH OR FIT THE ORIGINAL ITEM AS A RESULT COMPANIES LIKE VENG ARE THRIVING IN BRITAIN BUT SOME CONTINENTAL COUNTRIES LED BY FRANCE HAVE DESIGNPROTECTION LAWS AS STRICT AS THEIR COPYRIGHT STATUTES AND ARE INTENT TO KEEP OUT WHAT THEY REGARD AS SLIPPERY COUNTERFEITS PEOPLE FAMILIAR WITH THE EC LEGISLATION SAY THE FINAL PROPOSAL ON DESIGN PROTECTION MAY HAVE A REPAIR EXCEPTION OR A SPARE PARTS EXCEPTION WITHOUT SPECIFICALLY MENTIONING CARS OTHERS PREDICT THERE WILL INDEED BE SPECIAL RULES FOR CARS ALLOWING COMPANIES TO MAINTAIN EXCLUSIVE DESIGN RIGHTS OVER SOME BODY PARTS FOR A LIMITED TIME PERHAPS THREE TO FIVE YEARS BUT LATER GRANTING BUSINESSES SUCH AS VENG THE RIGHT TO PRODUCE THOSE PARTS BY PAYING THE CAR MAKER A LICENSE FEE 9305100002 930510 MAJOR AIRLINES MATCH NORTHWEST'S FARE CUTS FOR SUMMER TRAVEL NEW YORK AP MAJOR AIRLINES COPIED NORTHWEST AIRLINES' LATEST FARE CUTS FRIDAY BUT TRAVELERS WERE NOT NECESSARILY JUMPING AT THE SUMMER DISCOUNTS OF UP TO 33 ON NORTH AMERICAN FLIGHTS TRAVEL AGENTS SAID PASSENGERS APPARENTLY WERE WAITING TO SEE WHETHER A FARE WAR LIKE LAST SUMMER'S HALFPRICE SALE WAS LOOMING NORTHWEST A ST PAUL MINNBASED UNIT OF CLOSELY HELD WINGS HOLDINGS INC ANNOUNCED ITS REDUCTIONS LATE THURSDAY GIVING THE AIRLINE A DAY AS THE ONLY CARRIER WITH THE DISCOUNTED FARES ON FRIDAY AMR CORP'S AMERICAN AIRLINES UAL CORP'S UNITED AIRLINES DELTA AIR LINES USAIR GROUP'S USAIR UNIT AND CONTINENTAL AIRLINES SAID THEY WOULD OFFER SIMILAR PROMOTIONS IN MARKETS WHERE THEY COMPETE WITH NORTHWEST NORTHWEST USED A SIMILAR STRATEGY IN ANNOUNCING A 35 FARE DISCOUNT LAST MONTH DISCLOSING THE PROMOTION ON A SUNDAY OTHER MAJOR CARRIERS WEREN'T ABLE TO MATCH THE CUTS UNTIL THE NEXT DAY ACTIVITY AT MANY TRAVEL AGENCIES WAS AVERAGE FRIDAY PEOPLE ARE CONDITIONED NOW TO WAIT FOR A SALE SAID BARBARA HEMBERGER A SPOKESWOMAN FOR CARLSON TRAVEL NETWORK NORTHWEST'S LATEST SALE ON NORTH AMERICAN AND SOME TRANSATLANTIC FLIGHTS ENDS AT MIDNIGHT MAY 18 SAMPLE ROUNDTRIP FARES FOR TRAVEL BETWEEN JULY 1 AND SEPT 15 INCLUDE BOSTONNEW ORLEANS FOR 298 AND DETROITATLANTA FOR 218 UNDER THE SALE TRAVEL MUST BEGIN ON OR AFTER MAY 27 AND BE COMPLETED BY SEPT 15 THE NONREFUNDABLE TICKETS REQUIRE 14DAY ADVANCE PURCHASE AND OTHER RESTRICTIONS APPLY NORTHWEST SAID NORTHWEST'S PERSISTENT DISCOUNTING HAS PROMPTED CONCERN THAT THE CARRIER WHICH IS TRYING TO RESTRUCTURE ITS FINANCES NEEDS CASH TO PAY OPERATING COSTS 9305100001 930510 OLYMPIA & YORK UNIT FILES PETITION TO SWAP OFFICE TOWER FOR DEBT NEW YORK OLYMPIA & YORK SAID A SUBSIDIARY FILED A PETITION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN ORDER TO FORMALIZE THE PREVIOUSLY AGREED TRANSFER OF ONE OF O&Y'S MANHATTAN OFFICE TOWERS TO THE BUILDING'S CREDITORS O&Y SAID THE FILING BY OLYMPIA & YORK WATER STREET FINANCE CORP MADE IN US BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK WOULD GIVE HOLDERS OF 548 MILLION IN BONDS DIRECT OWNERSHIP OF THE 53STORY BUILDING AT 55 WATER ST IN EXCHANGE FOR CANCELING THE DEBT THE TRANSACTION IS EXPECTED TO CLOSE WITHIN FOUR MONTHS THE LARGEST STAKE IN THE BUILDING WILL BE HELD BY RETIREMENT SYSTEMS OF ALABAMA A PENSION FUND WHICH HOLDS 100 MILLION OF THE BONDS O&Y SAID THE COURT FILING DOESN'T AFFECT THE COMPANY'S CONTINUING NEGOTIATIONS TO RESTRUCTURE MORE THAN 5 BILLION IN DEBT RELATED TO ITS US REAL ESTATE OPERATIONS EARLIER THIS YEAR THE COMPANY'S TORONTOBASED PARENT OLYMPIA & YORK DEVELOPMENTS LTD REORGANIZED UNDER CANADIAN BANKRUPTCY LAW WHICH RESULTED IN CREDITORS WRESTING CONTROL OF THE COMPANY FROM TORONTO'S REICHMANN FAMILY WILBUR ROSS JR SENIOR MANAGING DIRECTOR OF ROTHSCHILD INC AND FINANCIAL ADVISER TO THE WATER STREET BONDHOLDERS SAID THAT UNDER A CHAPTER 11 FILING A FAVORABLE VOTE BY TWOTHIRDS OF THE BONDHOLDERS WILL ENSURE THE DEAL GOES AHEAD HE SAID HE DOESN'T KNOW OF ANY BONDHOLDER THAT OPPOSES THE PLAN RETIREMENT SYSTEMS OF ALABAMA ALSO HAS OFFERED A CASH PAYMENT TO BUY OUT THE OTHER BONDHOLDERS AT ABOUT 27 CENTS FOR EVERY DOLLAR OF DEBT HELD MR ROSS SAID THAT AFTER THE TRANSACTION 55 WATER ST WILL HAVE ABOUT 50 MILLION IN CASH AND NO DEBT AS A RESULT IT WILL BE A POWERFUL FORCE IN DOWNTOWN REAL ESTATE HE SAID 9305100080 930422 COUNTERPOINT UAW VS CATERPILLAR THE BATTLE CONTINUES BY BILL CASSTEVENS APRIL BRINGS BACK UNPLEASANT MEMORIES ONE YEAR AGO THIS MONTH DON FITES CHAIRMAN AND CEO OF CATERPILLAR INC ESCALATED A DIFFICULT LABOR DISPUTE BY THREATENING TO PERMANENTLY REPLACE 12600 STRIKING UAW MEMBERS THIS ULTIMATUM CAUSED ANGUISH ON UAW PICKET LINES WHERE UNION MEMBERS FACED THE REAL POSSIBILITY OF LOSING THEIR JOBS THE COMPANY ITSELF WAS ALSO RISKING POTENTIAL DISASTER CAT'S ABILITY TO PRODUCE QUALITY MACHINERY AND GET PREMIUM PRICES WOULD HAVE BEEN SEVERELY COMPROMISED IF INEXPERIENCED STRIKEBREAKERS HAD TAKEN OVER THE JOBS OF SKILLED UNION WORKERS MANY COMPANIES HAVE USED REPLACEMENT WORKERS IN RECENT YEARS FOR A NUMBER OF THEM EASTERN AIRLINES GREYHOUND THE DAILY NEWS THE RESULT HAS BEEN A BANKRUPT OR SEVERELY DAMAGED ENTERPRISE IN EARLY APRIL 1992 IT LOOKED AS IF CATERPILLAR WAS HEADING IN THE SAME DANGEROS DIRECTION THOSE WERE THE CONSIDERATIONS FACED BY OUR UNION NEGOTIATING TEAM ON THE EVENING OF APRIL 13 1992 AS WE MET IN THE OFFICES OF THE FEDERAL MEDIATION AND CONCILIATION SERVICE IN HINSDALE ILL WE DECIDED TO PROTECT OUR MEMBERS AND TO SAVE THE COMPANY FROM ITSELF BY ACCEPTING AN FMCS RECOMMENDATION TO RETURN TO WORK WE DID NOT ACCEPT HOWEVER CAT'S DEMANDS FOR CONTRACT TAKEAWAYS WE RETURNED TO WORK WITHOUT A SIGNED LABOR PACT AND PLANNED PRESSURE TACTICS TO BRING THE COMPANY BACK TO THE BARGAINING TABLE UNDER TERMS PROPOSED BY THE FMCS AT THE TIME HARDLY ANYONE BELIEVED WE HAD A PRAYER OF SUCCEEDING OUR RETURN TO WORK WAS INTERPRETED BY SOME AS A HUMILIATING DEFEAT FOR OUR UNION AND A SMASHING VICTORY FOR CATERPILLAR THE UAW'S BARGAINING METHOD IS NOT ONLY OLD IT'S OBSOLETE AN EDITORIAL IN THIS NEWSPAPER SAID CATERPILLAR APPEARS TO HAVE WON THIS TEST OF POWER SAID THE PEORIA JOURNAL STAR THE UNION'S MOVE IS NO LESS THAN A CLEAR VICTORY FOR FITES SAID BUSINESS WEEK FITES CAN PROBABLY USE THE MOMENTUM TO GET HIS WAY IN NEGOTIATIONS TWELVE MONTHS LATER THE MOMENTUM FROM MR FITES'S CLEAR VICTORY HAS GOTTEN HIM NOWHERE THE COMPANY STILL HAS NO SIGNED LABOR PACT WITH THE UAW AND ALL AVAILABLE EVIDENCE INDICATES THAT OUR CAMPAIGN AGAINST CAT IS SUCCEEDING WHAT HAS CATERPILLAR GAINED BY ITS DECISION TO WAGE WAR AGAINST ITS OWN WORK FORCE A HEALTHY DOSE OF NEGATIVE PUBLICITY A SERIES OF UNFAIRLABORPRACTICE COMPLAINTS AND AN EXTREMELY HOSTILE WORK ENVIRONMENT INSIDE CATERPILLAR PLANTS IF THIS IS WHAT HAPPENS WHEN CATERPILLAR WINS A CLEAR VICTORY I'D HATE TO SEE WHAT HAPPENS WHEN IT SUFFERS A SERIOUS DEFEAT TWO YEARS AFTER CAT FIRST BEGAN TRYING TO PERSUADE OUR MEMBERS TO ACCEPT A LOWER STANDARD OF LIVING THE ISSUES IN THIS DISPUTE REMAIN CLEAR CATERPILLAR IS ATTACKING THE FUNDAMENTAL RIGHT OF WORKING MEN AND WOMEN TO JOIN AND PARTICIPATE IN LABOR UNIONS OF THEIR OWN CHOOSING DURING THE PAST TWO WEEKS CATERPILLAR HAS ORDERED THE ARREST OF MORE THAN 150 UAW MEMBERS MYSELF INCLUDED WHO WERE PARTICIPATING IN PEACEFUL ORDERLY UNION ACTIVITIES ON COMPANY PROPERTY THE NATIONAL LABOR RELATIONS BOARD HAS ISSUED TWO UNFAIR LABOR PRACTICE COMPLAINTS AGAINST CATERPILLAR AS A RESULT OF THE ARRESTS WHICH ARE A FLAGRANT VIOLATION OF FEDERAL LABOR LAW IN ADDITION TO TRAMPLING OUR LEGAL RIGHTS CATERPILLAR HAS IMPOSED A NUMBER OF SIGNIFICANT CONTRACT TAKEAWAYS THESE INCLUDE A SUBSTANDARD HEALTH PLAN THE REMOVAL OF MEANINGFUL JOBSECURITY PROTECTIONS AND A TWO AND THREETIER WAGE STRUCTURE IN WHICH NEW HIRES AND RECALLED WORKERS ARE PAID POVERTYLEVEL WAGES IN DENVER ONE NEWLY HIRED WORKER FOUND THAT CATERPILLAR WAGES WERE TOO LOW FOR HIM TO FEED HIS FAMILY HE QUALIFIED FOR FOOD STAMPS WHILE ON THE COMPANY PAYROLL THAT'S THE FUTURE ACCORDING TO CATERPILLAR AND UAW MEMBERS AREN'T BUYING IT CAT MUST NOT BE ALLOWED TO FORCE ITS WORKERS TO RELY ON TAXPAYERFUNDED GOVERNMENT SUBSIDIES IN ORDER TO SURVIVE OUR CAMPAIGN FOR JUSTICE AT CATERPILLAR HAS INVOLVED THOUSANDS OF UAW MEMBERS AND THEIR SUPPORTERS WE HAVE PROTESTED AT CAT DEALERSHIPS AT INDUSTRY TRADE SHOWS AND OUTSIDE THE HOMES OF MR FITES AND OTHER COMPANY EXECUTIVES INSIDE CATERPILLAR PLANTS OUR WORKTORULE STRATEGY IS DENYING THE COMPANY THE EXTRA EFFORT AND INGENUITY THAT ONLY A WELLMOTIVATED WORK FORCE CAN PROVIDE CATERPILLAR SPOKESPEOPLE DENY THAT WE'RE HAVING ANY IMPACT BUT THEIR FRONTLINE MANAGERS KNOW BETTER LAST AUGUST A BUILDING MANAGER FROM CAT'S AURORA ILL PLANT WROTE A MEMO TO HIS EMPLOYEES STATING HIS PLANT HAD RECENTLY SUFFERED THE WORST MONTH OF PRODUCTION EVER SINCE THEN THAT MANAGER HAS NOT WRITTEN ANY MORE MEMOS BUT INTERNAL DOCUMENTS RELEASED FROM THE SAME FACTORY IN JANUARY SHOWED THAT 86 OF WORK ORDERS WERE BEING COMPLETED LATE CATERPILLAR'S THREAT TO HIRE PERMANENT REPLACEMENTS LAST YEAR SENT A DEVASTATING MESSAGE TO THE COMPANY'S EMPLOYEES THE MESSAGE WAS YOUR SKILL DEDICATION AND EXPERIENCE HAVE NO VALUE TO US ANYONE OFF THE STREET CAN TAKE YOUR JOB YOU CAN'T TELL PEOPLE THAT KIND OF THING AND EXPECT THEM TO REMAIN LOYAL AND PRODUCTIVE INDUSTRY WEEK SUMMARIZED THE PRESENT SITUATION IN A FEBRUARY ARTICLE THE CAMARADERIE THAT CAT HAD BUILT WITH ITS WORKERS IS GONE IT WROTE GRIEVANCES IN THE FINAL STAGE OF ARBITRATION WHICH HAD BEEN AS LOW AS 20 PRIOR TO THE LOCKOUT ARE NOW WELL OVER 300 AT THE AURORA PLANT ALONE THE COMPANY HAS BROUGHT AN END TO THE COOPERATION BETWEEN WORKERS AND MANAGERS THAT HAD BOOSTED PRODUCTIVITY BY 30 SINCE 1986 DESPITE THE DISASTER TAKING PLACE INSIDE CATERPILLAR PLANTS MR FITES HAS TAKEN A 254 BASE SALARY INCREASE SINCE 1990 HOW DOES HE JUSTIFY A LARGE PAY INCREASE FOR HIMSELF WHEN HIS COMPANY HAS LOST MONEY IN SEVEN OUT OF EIGHT QUARTERS MR FITES HAS DONE MUCH BETTER THAN CATERPILLAR SHAREHOLDERS WHO HAVE SEEN THEIR ANNUAL DIVIDEND HALVED FROM 120 A SHARE IN 1990 TO 60 CENTS A SHARE IN 1992 THE COMPANY'S STOCK HAS CONSISTENTLY UNDERPERFORMED THE STANDARD & POOR'S 500 AS WELL AS THE S&P INDEX OF DIVERSIFIED MACHINERY FIRMS AT LAST WEEK'S ANNUAL SHAREHOLDER MEETING MR FITES REPEATEDLY IGNORED OR SILENCED SHAREHOLDERS WITH CONCERNS ABOUT MANAGEMENT PERFORMANCE QUESTIONS ABOUT CATERPILLAR'S FUTURE HOWEVER WILL NOT GO AWAY CATERPILLAR HAS NOW IMPOSED THE WAGE STRUCTURE AND WORKING CONDITIONS IT SAID IT NEEDED TO BE SUCCESSFUL BUT THE COMPANY IS STILL LOSING MONEY THAT'S WHY MORE AND MORE STAKEHOLDERS HAVE CONCLUDED THAT THE COMPANY'S CURRENT STRATEGY IS NOT WORKING MR CASSTEVENS IS SECRETARYTREASURER OF THE UAW SEE RELATED LETTERS LETTERS TO THE EDITOR DEAR UAW CAT'S DOOR IS STILL OPEN WSJ MAY 10 1993 9304220115 YY93 MM05 9305100064 930401 HEALTH TREND TOWARD QUITTING SMOKING SLOWS AS DISCOUNT CIGARETTES GAIN POPULARITY BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN BARELY A DECADE DISCOUNT CIGARETTES HAVE GROWN TO NEARLY ONETHIRD OF THE 44 BILLIONAYEAR CIGARETTE INDUSTRY NOW THE EXPLOSION IN CHEAP SMOKES HAS BEGUN TO HAVE STRIKING CONSEQUENCES AFTER SEVERAL DECADES OF STEADY DECLINE IN SMOKING FEWER PEOPLE ARE QUITTING OR CUTTING BACK HEALTH EXPERTS SAY THAT MANY PEOPLE QUIT SMOKING NOT TO SAVE THEIR LUNGS BUT TO SAVE A BUCK AND DISCOUNT CIGARETTES SELL FOR AS LITTLE AS A DOLLAR A PACK COMPARED WITH WELL OVER 2 FOR BETTERKNOWN BRANDS THE GROWING POPULARITY OF CHEAP CIGARETTES MEANS THAT THOUSANDS OF PEOPLE WHO MIGHT OTHERWISE HAVE QUIT SMOKING MAY INSTEAD DIE FROM SMOKINGRELATED DISEASES BEFORE THE SURGE IN PRIVATELABEL TOBACCO THE NATION WAS ON TRACK TOWARD MEETING THE FEDERAL GOVERNMENT'S GOAL OF REDUCING SMOKING TO JUST 15 OF THE POPULATION BY THE YEAR 2000 DOWN FROM THE CURRENT LEVEL OF ABOUT 25 AND DOWN FROM 43 IN 1966 NOW THAT TARGET IS IN JEOPARDY SAYS JOSEPH DIFRANZA A PHYSICIAN AND PROFESSOR AT THE UNIVERSITY OF MASSACHUSETTS DISCOUNT CIGARETTES ARE A NEW HEALTH THREAT ADDS JOE TYE PRESIDENT OF STOP TEENAGE ADDICTION TO TOBACCO A NONPROFIT GROUP IN SPRINGFIELD MASS THE CONSEQUENCES ARE MORE PEOPLE ARE GOING TO DIE EXPERTS ON SMOKING AND HEALTH ARE JUST BEGINNING TO CALCULATE THE TOLL OF THE SLOWING RATE OF DECLINE KENNETH WARNER AN EXPERT ON SMOKING AND HEALTH AT THE UNIVERSITY OF MICHIGAN SCHOOL OF PUBLIC HEALTH ESTIMATES THAT OVER A PERIOD OF PERHAPS TWO DECADES OVER A MILLION SMOKINGRELATED DEATHS WOULD HAVE BEEN AVOIDED HAD THE PREVIOUS RATE OF DECLINE SIMPLY PERSISTED THE ADDITIONAL COSTS FOR CARING FOR SMOKERS THAT WOULD OTHERWISE HAVE QUIT ARE EXPECTED TO REACH THE BILLIONS OF DOLLARS THE HEALTH TAB FOR SMOKINGRELATED ILLNESS ALREADY RUNS AN ESTIMATED 65 BILLION A YEAR IN A STRANGE MARRIAGE OF INTERESTS ANTISMOKING GROUPS HAVE COME TO RELY ON THE TOBACCO INDUSTRY'S REGULAR PRICE INCREASES TO INDUCE PEOPLE TO QUIT SMOKING A 1989 REPORT FROM THE US SURGEON GENERAL STATES THAT EVERY 10 RISE IN THE PRICE OF CIGARETTES LEADS TO A 4 DECLINE IN SMOKING BUT LAST YEAR THE SURGE IN DISCOUNT SALES APPEARED TO INTERRUPT THE STEADY DECLINE IN CIGARETTE CONSUMPTION IN 1992 CIGARETTE SHIPMENTS FELL BY A MERE 04 COMPARED WITH THE STEADY 2 TO 3 DROP IN SHIPMENTS THAT HAD BEEN THE NORM IN RECENT YEARS ACCORDING TO DATA COMPILED BY JOHN MAXWELL AN ANALYST WITH WHEAT FIRST SECURITIES INC DATA FROM THE TOBACCO INSTITUTE A LOBBYING GROUP SHOW THAT PER CAPITA CIGARETTE CONSUMPTION DROPPED ONLY 069 LAST YEAR DOWN SHARPLY FROM THE 4 ANNUAL DROP FROM 1988 THROUGH 1990 THE CHEAP CIGARETTES KEEP SOME PEOPLE IN THE MARKET THAT WOULD OTHERWISE DROP OUT SAYS VERNER N GRISE AN ECONOMIST WITH THE US AGRICULTURE DEPARTMENT WHICH TRACKS CIGARETTE CONSUMPTION AFTER SMOKING FOR TWO DECADES DONNA BROD FINALLY DECIDED SHE WOULD TRY TO STOP HER MOTHER A LIFELONG SMOKER HAS BEEN DIAGNOSED WITH LUNG CANCER BUT MRS BROD SAYS THAT ISN'T WHAT PROMPTED HER DECISION IT WAS INSTEAD THE FINANCIAL DRAIN OF PAYING 2 A PACK FOR HER BELOVED TAREYTON CIGARETTES INSTEAD OF QUITTING HOWEVER SHE RECENTLY TRADED IN HER BRAND FOR THE CHEAPER CAMBRIDGE AT 115 A PACK I WOULD HAVE QUIT BY NOW IF I HADN'T SWITCHED OVER SAYS MRS BROD A PARTTIME RECEPTIONIST IN A DENTIST'S OFFICE IN MOSINEE WIS IT'S SOMETHING FOR US PEOPLE THAT DON'T HAVE A LOT OF MONEY BUT DON'T HAVE THE WILLPOWER TO STOP THE SUDDEN SLOWING IN THE DECLINE OF SMOKING MAY INDICATE THAT EVEN IF THE CLINTON ADMINISTRATION SLAPS A HIGHER FEDERAL EXCISE TAX ON CIGARETTES IT MAY FAIL TO PROD MANY SMOKERS TO QUIT ANTISMOKING ADVOCATES ARE PUSHING THE HIGHER LEVY AS BOTH A NEW SOURCE OF FUNDS FOR HEALTH CARE AND A FURTHER INDUCEMENT TO CURB THE HABIT BUT HEALTH EXPERTS WORRY THAT HIGHER CIGARETTE TAXES COULD END UP MERELY PUSHING MORE SMOKERS TO TAKE UP PRIVATELABEL BRANDS IN ITS BATTLE AGAINST SMOKING MASSACHUSETTS DOUBLED THE STATE CIGARETTE TAX THIS YEAR TO 51 CENTS A PACK THE HIGHEST LEVEL IN THE NATION AT A VENDING MACHINE A PACK OF MARLBOROS NOW COSTS A STIFF 375 BUT RATHER THEN DRIVING SMOKERS TO QUIT THE HIGHER TAX HAS LED TO TRADING DOWN A RECENT SURVEY IN MASSACHUSETTS FOUND PLENTY OF GOOD INTENTIONS 75 OF THE SMOKERS SAID THEY PLANNED TO TRY TO QUIT BECAUSE OF THE NEW TAX AND NEARLY HALF CLAIMED TO HAVE CUT DOWN SOME YET 23 OF THE SMOKERS IN THE STUDY ADMITTED THEY HAD SWITCHED TO CHEAPER CIGARETTES SINCE THE HIGHER TAXES WERE IMPOSED AT THE BEGINNING OF THE YEAR AND 22 REPORTED TRAVELING TO ANOTHER STATE SOLELY TO BUY CHEAPER PACKS THE SURVEY DIDN'T ASK HOW MANY HAD QUIT SMOKING IN THE OLD DAYS A TAX TOOK AWAY SMOKERS IN THE 1990S THE TAX TAKES AWAY PROFITS FROM CIGARETTE COMPANIES SAYS GREGORY CONNOLLY AN OFFICIAL WITH THE MASSACHUSETTS DEPARTMENT OF PUBLIC HEALTH A SPOKESWOMAN FOR RJR NABISCO HOLDINGS CORP'S RJ REYNOLDS TOBACCO UNIT SAYS IT IS ILLOGICAL TO SUGGEST THAT PEOPLE WHO MIGHT OTHERWISE QUIT SMOKING WOULD INSTEAD SWITCH TO CHEAPER CIGARETTES IF YOU WANT TO QUIT YOU QUIT SHE SAYS WHAT DOES PRICE HAVE TO DO WITH IT STILL SHE ACKNOWLEDGES THAT SOME PEOPLE QUIT SMOKING FOR ECONOMIC REASONS PHILIP MORRIS COS THE LARGEST US CIGARETTE MARKETER AND THE TOBACCO INSTITUTE AN INDUSTRY LOBBYING GROUP HAD NO COMMENT HEALTH EXPERTS ARE PARTICULARLY CONCERNED ABOUT THE IMPACT OF CHEAPER CIGARETTES ON BLACK TEENAGERS IN THE PAST 15 YEARS THE US HAS SEEN A SHARP DROP IN THE NUMBER OF BLACK HIGH SCHOOL SENIORS WHO SMOKE A 1991 STUDY BY THE NATIONAL INSTITUTE ON DRUG ABUSE FOUND THAT 21 OF WHITE HIGH SCHOOL SENIORS REPORTED SMOKING AT LEAST ONE CIGARETTE IN THE PREVIOUS 30 DAYS COMPARED WITH ONLY 5 OF BLACK SENIORS THE HIGH COST OF CIGARETTES IS CONSIDERED A KEY FACTOR IN THE LOW RATE OF SMOKING AMONG BLACK TEENS BUT NOW CIGARETTE MAKERS ARE EXPANDING THEIR DISCOUNT LINES INTO THE MENTHOL AREA WHICH IS PREFERRED BY MANY BLACKS PART OF THE RECENT BLITZ OF NEW PRODUCTS IS RIVIERA A MEDIUMPRICED MENTHOL BRAND INTRODUCED NATIONALLY LAST YEAR BY AMERICAN TOBACCO CO A DIVISION OF AMERICAN BRANDS INC ANTISMOKING GROUPS ARE QUICK TO POUNCE ON ANY NEW TOBACCO PRODUCT AIMED AT BLACKS WHO ALREADY SUFFER DISPROPORTIONATELY FROM SMOKINGRELATED DISEASES MICHAEL P ERIKSEN DIRECTOR OF THE OFFICE ON SMOKING AND HEALTH AT THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA SAYS IT IS VERY DISTURBING TO FIND A CIGARETTE WHICH WE KNOW IS PREFERRED BY BLACKS DISCOUNTED TO MAKE IT MORE AFFORDABLE IN A PROTEST SIMILAR TO THE OUTCRY OVER UPTOWN RJ REYNOLDS TOBACCO'S SHORTLIVED EFFORT TO MARKET A CIGARETTE TARGETED AT BLACK SMOKERS AMERICAN BRANDS EXECUTIVES WERE ROUNDLY UPBRAIDED AT THEIR ANNUAL MEETING LAST MAY BY ANTISMOKING ACTIVISTS UPSET BY THE PLANS FOR RIVIERA AMERICAN BRANDS DENIES THAT RIVIERA IS AIMED AT YOUNG BLACKS NONETHELESS MR CONNOLLY THE MASSACHUSETTS HEALTH OFFICIAL TOOK THE MICROPHONE AT THE AMERICAN BRANDS ANNUAL MEETING TO SUGGEST THAT THE COMPANY MARKET SUBURBIA A BRAND AIMED AT MIDDLEAGED WHITE MALE EXECUTIVES SEE RELATED LETTER LETTERS TO THE EDITOR PSST KIDDIE FILTHY CIGARETTES WSJ MAY 10 1993 9304010147 YY93 MM05 9305100078 930331 BIOTECHNOLOGY CLINTON TO SLOW PACE OF EASING BIOTECH RULES BY BOB DAVIS AND GREGORY N RACZ STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS DECIDED TO SUBSTANTIALLY SLOW THE PACE OF BIOTECHNOLOGY DEREGULATION BY RETAINING LIMITS ON AGRICULTURAL RESEARCH AND REVIEWING FEDERAL POLICY ON THE SALE OF GENETICALLY ENGINEERED PLANTS AND OTHER PRODUCTS THE MOVES REVERSE PLANS BY THE BUSH ADMINISTRATION TO SPEED THE COMMERCIALIZATION OF GENETICALLY ENGINEERED PRODUCTS AND REFLECT VICE PRESIDENT ALBERT GORE'S INFLUENCE OVER SCIENCE POLICY GREG SIMON MR GORE'S DOMESTIC POLICY ADVISER MET RECENTLY WITH ENVIRONMENTALISTS AND BIOTECHINDUSTRY OFFICIALS TO HELP CRAFT NEW AGRICULTURE DEPARTMENT BIOTECH REGULATIONS WHICH ARE EXPECTED TO BE PUBLISHED IN THE FEDERAL REGISTER TODAY AND TAKE EFFECT IN 30 DAYS GORE'S STAFF LISTENED TO THE ENVIRONMENTAL COMMUNITY AND TOOK OUT PROVISIONS INSERTED BY FORMER VICE PRESIDENT DAN QUAYLE'S COMPETITIVENESS COUNCIL SAID REBECCA GOLDBURG A BIOTECHNOLOGY ANALYST FOR THE ENVIRONMENTAL DEFENSE FUND SUSANNE HUTTNER DIRECTOR OF THE UNIVERSITY OF CALIFORNIA'S BIOTECHNOLOGY PROGRAM SAID THE CLINTON ADMINISTRATION'S RULES AREN'T SCIENTIFICALLY FOUNDED AND DON'T SUFFICIENTLY ENCOURAGE RESEARCHERS TO INVESTIGATE BIOTECH ALTERNATIVES TO CHEMICAL PESTICIDES AND FERTILIZERS GENETICALLY ALTERED PLANTS AND FOODS HAVE HUGE COMMERCIAL POTENTIAL BUT HAVE RAISED ALARM IN THE PUBLIC THAT THEY'RE UNSAFE A FOOD AND DRUG ADMINISTRATION ADVISORY COMMITTEE TODAY PLANS TO RELEASE A STUDY OF A GENETICALLY ENGINEERED HORMONE INJECTED IN COWS CALLED BOVINE GROWTH HORMONE WHICH BOOSTS MILK PRODUCTION SUBSTANTIALLY THE STUDY SAYS BGH CAUSES A RISE OF BETWEEN 50 AND 75 IN THE INCIDENCE OF MASTITIS AN UDDER INFECTION BUT WON'T RESULT IN AN INCREASED RISK TO HUMAN HEALTH THE STUDY WILL BE PRESENTED TO A DIFFERENT FDA PANEL TODAY WHICH IS CHARGED WITH DECIDING WHETHER THE INCREASE IN MASTITIS AND THE ANTIBIOTICS USED TO TREAT THE ILLNESS PRESENT A HEALTH HAZARD TO HUMANS STUDY RESULTS ARE GENERALLY ADOPTED BY SUCH PANELS WHOSE RECOMMENDATIONS IN TURN ARE USUALLY ADOPTED BY THE FDA BUT CONSUMER AND ENVIRONMENTAL GROUPS HAVE CAMPAIGNED HARD AGAINST BGH AND GIVEN THE ADMINISTRATION'S MORE CAUTIOUS ATTITUDE TOWARD BIOTECHNOLOGY APPROVAL IS FAR FROM CERTAIN A SENIOR CLINTON ADMINISTRATION OFFICIAL SAID THE WHITE HOUSE WON'T INTERVENE IN THE FDA'S DETERMINATION OF WHETHER BGH IS SAFE TO USE BUT HE SAID THE ADMINISTRATION WOULD LOOK AT WHETHER MILK SHOULD BE LABELED AS COMING FROM COWS THAT HAD USED BGH AND WHETHER USE OF THE HORMONE WOULD DEPRESS MILK PRICES BY INCREASING SUPPLY CONSUMERS UNION SAYS THE FDA STUDY DRAMATICALLY UNDERESTIMATES THE RISK TO HUMANS OTHER STUDIES SHOW AN EVEN GREATER INCREASE IN MASTITIS THE CONSUMER GROUP SAID WHICH WOULD RESULT IN A SURGE IN ANTIBIOTIC RESIDUE LEFT IN MILK THAT COULD AFFECT PEOPLE ALLERGIC TO ANTIBIOTICS CRITICS CONTEND AS WELL AS BUILD UP IMMUNITY AMONG ALL MILK DRINKERS TO ANTIBIOTICS USED TO TREAT SUCH DISEASES AS SALMONELLA GERALD GUEST DIRECTOR OF THE CENTER FOR VETERINARY MEDICINE WHICH CONDUCTED THE FDA SURVEY SAID THE GOVERNMENT'S MILKMONITORING SYSTEM ALREADY CHECKS FOR ANTIBIOTIC BUILDUP THE HORMONE HAS PROBABLY BEEN MORE HIGHLY SCRUTINIZED THAN ANY OTHER ANIMAL DRUG IN THE 22 YEARS I'VE BEEN HERE HE SAID ON THE BIOTECHRESEARCH RULES THE CLINTON ADMINISTRATION REVERSED KEY PARTS OF A BUSH PROPOSAL TO REVAMP FIELD TESTS OF GENETICALLY ENGINEERED PLANTS THE FINAL RULE WOULD CONTINUE THE BUSH PLAN OF ALLOWING RESEARCHERS OR COMPANIES TO DECIDE WHETHER THEY MUST APPLY FOR PERMITS TO CONDUCT RESEARCH ON ANY OF SIX CROPS CORN COTTON POTATOES TOMATOES SOYBEANS AND TOBACCO IF THE RESEARCHERS DECIDED THAT THE FIELD EXPERIMENTS DIDN'T VIOLATE AGRICULTURE DEPARTMENT CRITERIA THEY WOULD SIMPLY NOTIFY THE DEPARTMENT THAT THEY PLANNED TO START A FIELD TRIAL BUT THE BUSH PROPOSAL WOULD HAVE ALLOWED THAT NOTICE TO BE GIVEN AS LATE AS THE DAY THE FIELD TRIAL BEGAN UNDER THE CLINTON RULE EXPERIMENTERS WILL HAVE TO GIVE 30 DAYS NOTICE OF FIELD TESTS SO STATES AND THE FEDERAL GOVERNMENT COULD DECIDE WHETHER ADDITIONAL REVIEWS OR INSPECTIONS WERE NECESSARY IN ADDITION THE FINAL RULE ELIMINATES A PROPOSAL INSERTED AT THE BEHEST OF THE COMPETITIVENESS COUNCIL TO LET UNIVERSITY REVIEW BOARDS APPROVE FIELD TESTS OF OTHER CROPS RATHER THAN THE FEDERAL GOVERNMENT UNDER THE CLINTON PLAN THE AGRICULTURE DEPARTMENT RETAINS APPROVAL RIGHTS JOHN PAYNE THE DEPARTMENT'S DEPUTY CHIEF OF BIOTECHNOLOGY SAID THAT UNIVERSITIES WERE DIVIDED ON THE REVIEWBOARD PLAN BUT EVERYONE ELSE THOUGHT IT WAS A BAD IDEA THE AGRICULTURE DEPARTMENT IN ITS REGULATION SAID THE ADMINISTRATION IS FORMULATING A SEPARATE POLICY CONCERNING THE APPROVAL OF BIOTECH PRODUCTS FOR COMMERCIAL USE NO DETAILS WERE RELEASED BUT IT'S CLEAR THAT MR GORE AND HIS STAFF FAVOR MORE PUBLIC NOTICE BEFORE PRODUCTS ARE TESTED AND MARKETED THEY MAY ALSO BE MORE SYMPATHETIC TO CONSUMER CALLS TO LABEL GENETICALLY ENGINEERED FOODS THE FDA ALREADY HAS FIELDED 3000 COMMENTS THE VAST MAJORITY OF THEM CRITICAL OF A POLICY ADOPTED LAST YEAR OF EASING REGULATION ON GENETICALLY ENGINEERED FOODS AND THE ENVIRONMENTAL PROTECTION AGENCY IS WORKING ON RULES GOVERNING GENETICALLY ENGINEERED PESTICIDES AND OTHER MICROBES THE EPA AND THE AGRICULTURE DEPARTMENT CURRENTLY REGULATE FIELD TESTS TIGHTLY EXPERIMENTERS WHO WANT TO FIELDTEST GENETICALLY ENGINEERED CROPS APPLY TO THE AGRICULTURE DEPARTMENT FOR PERMISSION AND WAIT AS LONG AS FOUR MONTHS FOR AN ANSWER THE RESEARCHERS MUST PROVIDE DETAILED DESCRIPTIONS OF HOW THE CROPS HAVE BEEN MODIFIED SAY TO PREVENT EARLY RIPENING AND HOW THE FIELD TESTS ARE DESIGNED SO THE CROPS WON'T AFFECT OTHER PLANTS OR ANIMALS THE DEPARTMENT HAS OVERSEEN 365 FIELD TESTS WITHOUT MAJOR PROBLEMS RICHARD GODOWN SENIOR VICE PRESIDENT OF THE INDUSTRIAL BIOTECHNOLOGY ASSOCIATION PRAISED THE AGRICULTURE DEPARTMENT PLAN AS DIMINISHING 80 OF THE REGULATORY HASSLE FURTHER DEREGULATION COULD HARM THE INDUSTRY HE SAID BECAUSE OF PUBLIC MISTRUST IT'S NOT APPROPRIATE AT THIS TIME TO TAKE THE POSITION THAT THE GOVERNMENT SHOULD BE OUT OF THE REGULATORY PROCEDURE SEE RELATED LETTER LETTERS TO THE EDITOR FEAR VS FACTS IN BIOTECH DEBATE WSJ MAY 10 1993 9303310019 YY93 MM05 9305070204 930507 BUSINESS BRIEF TUCSON ELECTRIC POWER CO FIRM TO SELL SOME ASSETS OF 2 UNITS FOR 29 MILLION TUCSON ELECTRIC POWER CO TUCSON ARIZ SAID IT AGREED TO SELL PART OF THE REAL ESTATE AND RELATED ASSETS OF ITS TUCSON RESOURCES INC AND SIERRITA RESOURCES INC UNITS FOR 29 MILLION THE SALE AGREEMENT IS WITH SVP INVESTMENT MANAGERS LP A CLOSELY HELD ENTITY IN SCOTTSDALE ARIZ THE PROPERTIES INCLUDE THE WARNER CENTER HILTON AND TOWERS IN WOODLANDS CALIF THE HOLIDAY INNHURSTBOURNE IN LOUISVILLE KY AND TWO NOTES SECURED BY PROPERTIES IN PHOENIX ARIZ AND TUCSON TUCSON ELECTRIC SAID IT EXPECTS TO COMPLETE THE TRANSACTION IN THE THIRD QUARTER SUBJECT TO CERTAIN CONDITIONS THE SALE WON'T HAVE ANY EFFECT ON THE COMPANY'S INCOME STATEMENT AN OFFICIAL SAID TUCSON ELECTRIC HAS TO DATE TAKEN ABOUT 200 MILLION IN WRITEDOWNS AGAINST THE ASSETS OF TUCSON RESOURCES AND SIERRITA RESOUCES WHICH ACQUIRED PROPERTIES AND OTHER INVESTMENTS IN THE 1980S IN A FAILED DIVERSIFICATION PROGRAM 9305070203 930507 WHO'S NEWS NFS FINANCIAL CORP NFS FINANCIAL CORP NASHUA NH CAROLINE B MASON 51 YEARS OLD WAS NAMED A DIRECTOR OF THIS BANK HOLDING COMPANY SHE IS DIRECTOR OF TRAINING AT TELEDYNE ELECTROMECHANISMS A UNIT OF TELEDYNE INC AND SUCCEEDS PAUL E HOUDE WHO DIDN'T STAND FOR REELECTION 9305070202 930507 WHO'S NEWS NASHUA CORP NASHUA CORP NASHUA NH THOMAS W EAGAR 43 YEARS OLD AND CODIRECTOR LEADERS FOR MANUFACTURING PROGRAM AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY WAS NAMED A DIRECTOR OF THIS COMPUTER AND OFFICE PRODUCTS CONCERN HE SUCCEEDS RONALD JACKSON WHO DIDN'T STAND FOR REELECTION 9305070201 930507 WHO'S NEWS HOSPITAL STAFFING SERVICES HOSPITAL STAFFING SERVICES FORT LAUDERDALE FLA WARREN A MARMORSTEIN 33 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS HOME HEALTHCARE SERVICES CONCERN HE REMAINS CHIEF ADMINISTRATIVE OFFICER MR MARMORSTEIN SUCCEEDS BRIAN M LECHNER 36 WHO WILL REMAIN CHIEF OPERATING OFFICER 9305070200 930507 WHO'S NEWS TIME WARNER INC TIME WARNER INC NEW YORK JOHN A LABARCA WAS NAMED VICE PRESIDENT INTERNAL AUDIT SUCCEEDING JERALD OLSON WHO IS RETIRING MR LABARCA IS A SENIOR PARTNER IN THE NEW YORK OFFICE OF ACCOUNTING FIRM ERNST & YOUNG RESPONSIBLE FOR SEVERAL MEDIA AND ENTERTAINMENT COMPANIES INCLUDING TIME WARNER 9305070199 930507 PACKAGE TO COMPLETE S&L BAILOUT GETS APPROVAL OF HOUSE BANKING COMMITTEE BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE BANKING COMMITTEE APPROVED A MEASURE AIMED AT PROVIDING BETWEEN 183 BILLION AND 343 BILLION TO WIND UP THE HUGE SAVINGSANDLOAN RESCUE THE PANEL VOTED 3516 FOR THE MEASURE WITH SOME REPUBLICANS JOINING THE DEMOCRATIC MAJORITY THE MOST CRUCIAL VOTE CAME WHEN THE COMMITTEE BY VOICE VOTE SOLIDLY APPROVED A COMPROMISE PROPOSAL FOR COVERING SAVINGS DEPOSITS IN FUTURE THRIFT COLLAPSES THAT VOTE CLEARED WHAT HAD BEEN A CONTROVERSIAL ISSUE OVER WHETHER TO PROVIDE CONTINUED TAXPAYER MONEY WHEN THE FEDERAL DEPOSIT INSURANCE CORP ASSUMES THE S&L DEPOSITORPROTECTION ROLE IN OCTOBER UNDER THE COMPROMISE OFFERED BY COMMITTEE LEADERS INCLUDING CHAIRMAN HENRY GONZALEZ D TEXAS 12 BILLION THAT WAS APPROVED BY A SUBCOMMITTEE FOR THE FDIC'S SAVINGS ASSOCIATION INSURANCE FUND WAS STRIPPED FROM THE BILL INSTEAD THE PANEL ENDORSED THE AVAILABILITY UNDER CERTAIN CONDITIONS OF AS MUCH AS 16 BILLION IN ALREADYAUTHORIZED MONEY FOR THE SAIF CUTTING THE AUTHORIZED AMOUNT TO THAT TOTAL FROM 32 BILLION IN THE EXISTING LAW STILL ANY SAIF FUNDING WOULD NOW REQUIRE A SEPARATE CONGRESSIONAL APPROPRIATION SINCE 1989 THE BANKING COMMITTEES HAVE EXERCISED THE APPROPRIATION POWER IN THEIR VOTES ON S&L FUNDING BYPASSING THE USUAL CONGRESSIONAL REQUIREMENT THAT APPROPRIATIONS PANELS MUST BACK UP AUTHORIZATION VOTES WITH A SECOND VOTE OF THEIR OWN REP BRUCE VENTO D MINN A COMMITTEE MEMBER SUGGESTED THAT WHILE THE TWOSTEP FINANCING PROCESS WOULD MEAN TWO POLITICALLY UNPOPULAR VOTES IT WOULD ALSO SPREAD THE JOY OF POLITICALLY UNPOPULAR VOTING TO THE APPROPRIATIONS COMMITTEES IN ADDITION THE LEGISLATION WOULD MAKE IT HARDER FOR THE THRIFT INDUSTRY TO TAP THE TREASURY TO COVER FAILED S&L DEPOSITS THE GONZALEZ AMENDMENTS ALSO WOULD REQUIRE TWO SEPARATE FDIC CERTIFICATIONS THE BANKING COMMITTEE'S BILL ALSO WOULD GIVE 183 BILLION IN THRIFTBAILOUT FUNDS TO THE RESOLUTION TRUST CORP WHICH IS AUTHORIZED THROUGH SEPTEMBER TO TAKE OVER FAILED S&LS THE LEGISLATION REMOVES A CONGRESSIONAL BAN ON RTC USE OF PREVIOUSLY AUTHORIZED AND APPROPRIATED MONEY COMMENTING ON THE COMMITTEE'S ACTION A TREASURY SPOKESMAN SAID WE WOULD HAVE PREFERRED A BIGGER CUSHION TO PROTECT AGAINST UNFORESEEN EVENTS BUT WE'RE HAPPY WITH THE OUTCOME YESTERDAY'S VOTE CREATES A WIDE GAP BETWEEN THE HOUSE AND THE SENATE FUNDING APPROACHES EVENTUALLY THIS GAP MAY HAVE TO BE RESOLVED BY A JOINT CONFERENCE COMMITTEE THE SENATE BANKING COMMITTEE RECENTLY APPROVED 45 BILLION IN THRIFT BAILOUT FUNDS THE AMOUNT THE CLINTON ADMINISTRATION SOUGHT AT THE TIME THE FIGURE INCLUDED 28 BILLION FOR THE RTC AND 17 BILLION FOR THE SAIF THE HOUSE'S SCALEDDOWN NUMBERS WERE THE RESULT OF IMPROVING S&L FORTUNES WHICH HAVE LED TO REDUCED ESTIMATES OF THE COST OF FINISHING THE BAILOUT IT'S SPLENDID GOOD NEWS THAT IT WILL BE LESS MORE' MONEY THAN WOULD OTHERWISE BE THE CASE SAID REP JAMES LEACH OF IOWA THE COMMITTEE'S RANKING REPUBLICAN UNDER THE GONZALEZ AMENDMENT THE HOUSE PANEL ALSO STRENGTHENED SOME RTC AND FDIC AFFORDABLEHOUSING PROGRAMS AND SET GOALS FOR INCREASING MINORITY BUSINESS PARTICIPATION IN RTC WORK AND ASSET SALES REP KWEISI MFUME D MD AUTHOR OF THE ORIGINAL MINORITYCONTRACTING PROPOSALS SAID WE HAVE ALL TAKEN A STEP BACKWARD ON THIS SO WE MIGHT BE ABLE TO TAKE TWO STEPS FORWARD LATER SEPARATELY IN A VICTORY FOR BANKS THE BANKING COMMITTEE SCRAPPED A CLINTON ADMINISTRATION PLAN THAT REQUIRED THE FDIC TO CHARGE SOME 7000 STATECHARTED BANKS AN ANNUAL EXAMINATION FEE BANKS HAD LOBBIED HARD AGAINST THE FEE WHICH WOULD HAVE RAISED 13 BILLION OVER FIVE YEARS THE COMMITTEE COBBLED TOGETHER A PACKAGE OF REVENUE MEASURES TO RAISE AN EQUIVALENT ONE CHANGE WOULD FORCE THE FEDERAL RESERVE TO TRANSFER PART OF ITS SURPLUS TO THE TREASURY TO HELP REDUCE THE DEFICIT 9305070198 930507 WHO'S NEWS LYONDELL PETROCHEMICAL CO LYONDELL PETROCHEMICAL CO HOUSTON DAN F SMITH WAS ELECTED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PETROCHEMICAL PRODUCER A NEW POSITION MR SMITH 47 YEARS OLD MOST RECENTLY HAD BEEN VICE PRESIDENT FOR CORPORATE PLANNING WITH ATLANTIC RICHFIELD CORP AND HAD BEEN LYONDELL'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FROM 1988 TO 1991 HE WILL REMAIN A MEMBER OF LYONDELL'S BOARD A POST HE'S HELD SINCE 1988 9305070197 930507 ENTERPRISE BY MICHAEL SELZ BUSINESSES LOOKING FOR READY CASH ARE DIPPING DEEPER INTO UNCLE SAM'S PAYROLLTAX TILL EMPLOYERS MUST MAKE WEEKLY OR MONTHLY PAYMENTS TO THE INTERNAL REVENUE SERVICE OF PAYROLLTAX MONEY THEY HAVE WITHHELD FROM EMPLOYEE PAYCHECKS BUT MANY COMPANIES STRAPPED FOR FUNDS BECAUSE OF THE WEAK ECONOMY ARE DIVERTING THEIR PAYROLLTAX MONEY TO BUSINESS USES IN THE HOPE OF PAYING UP BEFORE THE IRS CATCHES UP WITH THEM THERE AREN'T FIGURES ON HOW MANY COMPANIES ARE DOING THIS BUT MANY MORE ARE GETTING CAUGHT AND THE IRS SAYS THAT ISN'T BECAUSE OF TOUGHER ENFORCEMENT THE AGENCY SAYS 37 MILLION COMPANIES PAID PENALTIES FOR FAILING TO REMIT PAYROLL TAXES IN FISCAL 1992 AN INCREASE OF 70 FROM A YEAR EARLIER THE FINES THEY PAID TOTALED 179 BILLION IRS OFFICIALS AND BUSINESS CONSULTANTS SAY SMALL BUSINESSES ACCOUNT FOR MOST OF THE RISE IT CAN TAKE THE IRS AS MUCH AS A YEAR TO DO MORE THAN SEND OVERDUE NOTICES BUT WHEN THE AGENCY DOES MOVE THE CONSEQUENCES CAN BE SEVERE IN ADDITION TO ASSESSING PENALTIES THE IRS CAN FILE A LIEN AGAINST A COMPANY'S ASSETS TO COLLECT ITS TAX BILL WHICH CAN BE MORE ONEROUS THAN A BANK FORECLOSURE ON A LOAN DIVERTING PAYROLL TAXES IS LIKE PLAYING RUSSIAN ROULETTE WITH YOUR BUSINESS WARNS JOHN HYDE PRESIDENT OF RAMPART GROUP A BROOKFIELD CONN FINANCIALCONSULTING CONCERN COMPANY OWNERS DESPERATE FOR CASH SHOULD LOOK ELSEWHERE HE SAYS BANKS ARE WILLING TO LOOK AT A BROADER UNIVERSE OF ALTERNATIVES SUCH AS REFINANCING DEBT RAISING EQUITY OR SELLING ASSETS MR HYDE SAYS WITH THE IRS A BUSINESS EITHER COMES UP QUICKLY WITH A REPAYMENT PLAN THAT INCLUDES STAYING CURRENT ON NEW OBLIGATIONS OR THEY'RE GOING TO CLOSE THE COMPANY DOWN FRANCHISERS INVADE MILITARY BASES FOR RECRUITS THOUSANDS OF PEOPLE LEAVING THE MILITARY EACH YEAR AMID PENTAGON CUTS FACE A SOFT JOB MARKET SAYS CH WOOD ADMINISTRATOR OF VETERANS TRANSITION FRANCHISE INITIATIVE A WACO TEXAS PROGRAM SPONSORED BY THE FRANCHISE INDUSTRY THAT PROMOTES SELLING FRANCHISES TO VETERANS SO FRANCHISERS INCREASINGLY ARE JUMPING AT THE OPPORTUNITY WE HAVE BEEN TARGETING MILITARY VETS SAYS TED ELLIOTT CHIEF OPERATING OFFICER OF COVERALL NORTH AMERICA A SAN DIEGO FRANCHISER OF COMMERCIALCLEANING SERVICES THAT HAS 2600 FRANCHISES COVERALL HAS SOLD 150 OUTLETS TO VETERANS IN THE PAST TWO YEARS PARTLY BY ADVERTISING IN MILITARY JOURNALS AND PITCHING AT ONBASE CAREER SEMINARS THAT IT WILL KNOCK 10 OFF THEIR COST OF BUYING A FRANCHISE MR ELLIOTT SAYS OTHER COMPANIES ARE ALSO OFFERING INCENTIVES TO MILITARY TYPES TRAVEL AGENTS INTERNATIONAL A ST PETERSBURG FLA COMPANY WITH 340 FRANCHISES IN THE US WILL HELP VETERANS FINANCE AS MUCH AS HALF OF ITS 30000 FRANCHISEE FEE SAYS ITS PRESIDENT ROGER BLOCK COFFEE BEANERY A FLUSHING MICH FRANCHISER OF GOURMETCOFFEE STORES THAT HAS 100 FRANCHISES LETS VETERANS DEFER FOR TWO YEARS PAYMENT OF 80 OF ITS 25000 FRANCHISE FEE SAYS JOANNE SHAW PRESIDENT IT ALSO WILL CUT ITS ROYALTY TO 2 OF SALES THE FIRST YEAR AND 4 THE SECOND YEAR BEFORE RAISING IT TO THE STANDARD LEVEL OF 6 SMALL COMPUTERMAINTENANCE COMPANIES COULD GAIN ACCESS TO A HUGE MARKET BECAUSE OF A RECENT FEDERAL DECISION THE GENERAL ACCOUNTING OFFICE RULED IN MARCH THAT THE INTERIOR DEPARTMENT UNFAIRLY RESTRICTED COMPETITION WHEN SOLICITING BIDS FOR A COMPUTERMAINTENANCE CONTRACT THE DEPARTMENT REQUIRED WITHOUT SUFFICIENT REASON THE GAO FOUND THAT THE WINNER OF ITS CONTRACT MAINTAIN BOTH ITS HARDWARE AND SOFTWARE THAT CONDITION EFFECTIVELY EXCLUDES HARDWAREMAINTENANCE BUSINESSES FROM BIDDING BECAUSE ONLY THE COMPANIES THAT PRODUCE INTERIOR'S SOFTWARE KNOW CERTAIN PROPRIETARY CODES NEEDED TO SERVICE THE PROGRAMS MANY FEDERAL CONTRACTS BUNDLE SOFTWARE AND HARDWARE MAINTENANCE BECAUSE IT CAN BE EASIER FOR AN AGENCY TO DEAL WITH ONE VENDOR SAYS CARL MADSEN VICE PRESIDENT OF FEDERAL SUPPORT GROUP A WASHINGTON CONSULTING FIRM THE GAO RULING GIVES 2500 SMALL HARDWAREMAINTENANCE COMPANIES A CHANCE TO EXPAND IN THE GOVERNMENT'S 3 BILLION INFORMATIONTECHNOLOGY MARKETPLACE MR MADSEN SAYS MARILYN BATES PRESIDENT AND FOUNDER OF SAGE COMPUTER RESOURCES IN SAN ANTONIO SAYS SHE HAS TRIED FOR THREE YEARS TO PERSUADE A FEDERAL AGENCY TO UNBUNDLE A CONTRACT THAT COULD GENERATE SALES OF 40000 ANNUALLY FOR HER COMPANY WITH THIS RULING MS BATES SAYS I THINK I CAN MAKE THEM SEPARATE IT SMALL COMPANIES ARE INCREASINGLY OFFERING EMPLOYEES TAXDEFERRED SAVINGS PLANS THE NUMBER OF COMPANIES OFFERING SOCALLED 401K PLANS ROSE TO 111000 LAST YEAR 63 HIGHER THAN IN 1988 THE LABOR DEPARTMENT ESTIMATES A SPOKESWOMAN SAYS THE GROWTH HAS COME MAINLY AMONG SMALLER BUSINESSES WITH FEWER THAN 100 PLAN PARTICIPANTS MORE SMALL COMPANIES ARE LOOKING AT THESE KINDS OF PLANS SAYS LOIS LEATHERMAN A VICE PRESIDENT IN CHEMICAL BANKING'S MIDDLEMARKET BANKING GROUP WHICH RECENTLY BEGAN PROMOTING STANDARDIZED LOWCOST PLANS TAILORED FOR SMALL BUSINESS SUCH PLANS ALLOW PARTICIPANTS TO PLACE A PORTION OF THEIR PRETAX PAY IN A SAVINGS ACCOUNT OR OTHER INVESTMENTS THE CONTRIBUTION ISN'T TAXED UNTIL THE MONEY IS WITHDRAWN THE GROWTH AMONG SMALL COMPANIES REFLECTS A BROADER TREND OF EMPLOYERS STEERING AWAY FROM RETIREMENT PLANS THAT REQUIRE THEM TO CONTRIBUTE IN 401K PLANS MATCHING EMPLOYEES' SAVINGS IS OPTIONAL FOR COMPANIES CLAYTON GROUP A THREEYEAROLD NEW YORK FIRM THAT ANALYZES MORTGAGE PORTFOLIOS ADOPTED A PLAN LATE LAST YEAR FOR ITS 15 WORKERS AS WE BECAME A LARGER COMPANY WE FELT IT WAS A GOOD IDEA TO OFFER MORE BENEFITS TO KEEP MORALE HIGH SAYS STEPHEN LAMANDO PRESIDENT 9305070196 930507 WHO'S NEWS PARAMOUNT COMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC NEW YORK VICTORIA S SUTTON 40 YEARS OLD WAS NAMED PRESIDENT OF PARAMOUNT PARKS A NEW POSITION AT THE THEME PARK GROUP OF THIS ENTERTAINMENT AND PUBLISHING COMPANY MS SUTTON HAD BEEN EXECUTIVE VICE PRESIDENT OF THE UNIT BASED IN CHARLOTTE NC 9305070195 930507 WHO'S NEWS GLOBAL MARINE INC GLOBAL MARINE INC HOUSTON JERRY C MARTIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS INTERNATIONAL OFFSHORE DRILLING CONTRACTOR WAS ELECTED A DIRECTOR INCREASING THE BOARD'S SIZE TO 14 MEMBERS JAMES L MCCULLOCH 40 YEARS OLD WAS NAMED VICE PRESIDENT AND GENERAL COUNSEL SUCCEEDING JOHN G RYAN WHO WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPANY'S CONTRACT DRILLING DIVISION SEVERAL MONTHS AGO PREVIOUSLY MR MCCULLOCH WAS GLOBAL MARINE'S VICE PRESIDENT LITIGATION AND RISK MANAGEMENT 9305070194 930507 WHO'S NEWS WALBRO CORP WALBRO CORP CASS CITY MICH GUY D BARNICOAT 54 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS AUTO SUPPLIER'S WALBRO AUTOMOTIVE CORP UNIT HAS RESIGNED TO PURSUE OTHER INTERESTS A SUCCESSOR HASN'T BEEN NAMED 9305070193 930507 IOWA IS TAKING AIM AT BECOMING CAPITAL OF INSURANCE WORLD HAWKEYE STATE EASES PROCESS FOR GETTING LICENSES IN BID TO ATTRACT NEW BUSINESS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL IOWA IS KNOWN FOR CORN AND COLLEGE WRESTLING BUT STATE ECONOMIC DEVELOPMENT OFFICIALS WANT THE BUSINESS WORLD TO THINK OF IT AS SOMETHING ELSE AS AN INSURANCE CAPITAL THEY HAVE EVEN DISTRIBUTED LITERATURE THAT CLAIMS THE STATE HAS MORE INSURANCE COMPANIES THAN ANYWHERE EXCEPT HARTFORD OR LONDON NO MATTER THAT NEW YORK HAS MORE THE POINT IS IOWA HAS A LOT AND WE'RE STILL GROWING WHEN OTHERS ARE SHRINKING SAYS WILLIAM DEEMUTH OF IOWA'S ECONOMIC DEVELOPMENT OFFICE HE ADDS THE STATE HAS STOPPED MAKING CLAIMS ABOUT ITS RANK NOW IOWA IS GOING ALL OUT IN ITS BID TO ATTRACT INSURANCE COMPANIES IN RECENT MONTHS STATE OFFICIALS HAVE BLITZED THE EAST COAST TRYING TO CONVINCE THE LIKES OF METROPOLITAN LIFE PRUDENTIAL INSURANCE CO OF AMERICA AND AETNA LIFE & CASUALTY CO TO CONSIDER THE HAWKEYE STATE THE NEXT TIME THEY EXPAND OR RELOCATE STATE OFFICIALS ARE NOTHING IF NOT CONFIDENT AND THEY HAVE SET THEMSELVES AN AMBITIOUS GOAL THEY WANT THE STATE TO BE A BIGGER INSURANCE LOCATION THAN HARTFORD A CITY SYNONYMOUS WITH INSURANCE BY THE YEAR 2000 YOU ALWAYS HAVE TO START WITH HIGH ASPIRATIONS SAYS MR DEEMUTH CONNECTICUT PRIMARILY HARTFORD EMPLOYS 52500 IN THE INSURANCE BUSINESS COMPARED WITH 25690 IN IOWA LAST YEAR ACCORDING TO THE ALLIANCE OF AMERICAN INSURERS A TRADE GROUP IOWA IS SO SERIOUS ABOUT INSURANCE THAT ITS GOVERNOR TERRY BRANSTAD HAS TAKEN TO CALLING ON COMPANIES THREE WEEKS AGO HE SPENT 40 MINUTES AT THE HEADQUARTERS OF NEW YORK LIFE INSURANCE CO BENDING THE EAR OF THE COMPANY PRESIDENT GEORGE BUNDSCHUH MR BUNDSCHUH POLITELY LISTENED BUT SAID THE COMPANY WASN'T PLANNING ANY CHANGES THE ASSAULT ON THE EAST COAST IS THE LATEST TACTIC IN A DEVELOPMENT PROGRAM NOW IN ITS FIFTH YEAR THE EFFORT HAS HAD SOME NOTABLE SUCCESSES WHEN NIPPON LIFE INSURANCE CO THE WORLD'S LARGEST INSURER SOUGHT A HOME FOR ITS US OPERATION IT CHOSE DES MOINES AUSTRALIAN MUTUAL PROVIDENT SOCIETY THE BIGGEST INSURER IN THAT COUNTRY SET UP ITS NORTH AMERICAN HEADQUARTERS IN DES MOINES TOO BOTH WERE ATTRACTED BY REGULATIONS THAT MADE IT EASY TO BEGIN SELLING INSURANCE POLICIES WITHOUT HAVING TO ENDURE A LENGTHY APPROVAL PROCESS QUICK APPROVALS ALSO ENCOURAGED TOYOTA MOTOR INSURANCE SERVICES WHICH SELLS CREDIT INSURANCE TO TOYOTA MOTOR CORP CAR BUYERS TO SEEK OUT CEDAR RAPIDS FOR ABOUT 15 MILLION TOYOTA WAS ABLE TO BUY THE LICENSES AND CHARTER OF AN IOWA INSURANCE COMPANY THAT FAILED IT MIGHT HAVE TAKEN AS LONG AS EIGHT YEARS TO WIN EACH LICENSE ON ITS OWN IT SAVED US A LOT OF TIME AND ENERGY SAID MICHAEL DEADERICK GENERAL MANAGER FOR THE OPERATION TOYOTA'S INSURANCE COMPANY NOW HAS 105 EMPLOYEES IN IOWA AND PLANS TO BUILD THE STAFF TO 150 BY YEAR END OTHER COMPANIES THAT HAVE BEEFED UP THEIR IOWA PRESENCE INCLUDE CIGNA CORP LIBERTY MUTUAL INSURANCE CO AND EQUITABLE COS AND ONE HOMEGROWN INSURER THE PRINCIPAL GROUP HAS BEEN EXPANDING AT THE TIME WHEN EAST COAST INSURERS ARE SLASHING THEIR HEADQUARTER OPERATIONS BESIDES ATTRACTIVE REGULATIONS THE STATE HAS A NUMBER OF OTHER ATTRIBUTES INCLUDING FAVORABLE WAGE RATES AN EDUCATED WORK FORCE AND REASONABLE RENTS ECONOMIC DEVELOPMENT OFFICIALS RECENTLY TRANSLATED THESE FACTORS INTO TERMS INSURANCE COMPANIES CAN UNDERSTAND WITH THE HELP OF SOME ACTUARIAL CONSULTANTS THE STATE HAS CALCULATED THAT THE COST OF PROCESSING AN INSURANCE CLAIM IN CEDAR RAPIDS IN 613 COMPARED WITH AS MUCH AS 910 IN NEW YORK OR BOSTON WHETHER THE ADVANTAGES ARE ENOUGH FOR IOWA TO UNSEAT HARTFORD REMAINS TO BE SEEN ALMOST EVERY STATE HAS BEEN GOING AFTER CONNECTICUT FOR YEARS SAID A SPOKESMAN FOR THAT STATE'S ECONOMIC DEVELOPMENT AGENCY CONNECTICUT IS STILL THE ENVY OF THE REST OF THE NATION 9305070192 930507 WHO'S NEWS GRAND CASINOS INC GRAND CASINOS INC MINNEAPOLIS THOMAS BROSIG 43YEAROLD CHIEF OPERATING OFFICER WAS NAMED PRESIDENT OF THIS GAMBLING CONCERN EFFECTIVE IMMEDIATELY SUCCEEDING LYLE BERMAN 51 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE POST OF CHIEF OPERATING OFFICER REMAINS VACANT 9305070191 930507 THE DEFAMING OF THE ANTIDEFAMATION LEAGUE BY STEPHEN SCHWARTZ SAN FRANCISCO SOME FIVE MONTHS AGO MEDIA HERE REVEALED THAT AUTHORITIES WERE INVESTIGATING WHETHER A FORMER LOCAL POLICE OFFICER IMPROPERLY SOLD INFORMATION TO THE ANTIDEFAMATION LEAGUE THE CIVILRIGHTS BRANCH OF B'NAI B'RITH DEVOTED TO FIGHTING ANTISEMITISM AND PREJUDICE NO CHARGES HAVE BEEN FILED YET THE ENSUING CONTROVERSY HAS PLAYED OUT AGAINST A CHORUS OF EXAGGERATIONS ABOUT THE ADL INCLUDING THE CLAIM THAT IT IS AN AGENCY OF A FOREIGN GOVERNMENT ISRAEL AND THAT IT HAS CARRIED OUT WHOLESALE POLITICAL SPYING AGAINST INNOCENT PEOPLE SINCE ITS FOUNDING 80 YEARS AGO THE ADL HAS FOUGHT SOME OF THE MOST DANGEROUS ELEMENTS IN THE AMERICAN POLITICAL LANDSCAPE THE KU KLUX KLAN VARIOUS NEONAZI MOVEMENTS THE SKINHEADS MOST OF THE ADL'S ENEMIES HAVE NEITHER THE MEANS NOR THE CREDIBILITY TO PURSUE THEIR GRIEVANCES AGAINST IT THEY ARE NOW BEING HELPED AT TIMES INADVERTENTLY BY JOURNALISTS PUBLIC OFFICIALS AND IDEOLOGUES WHO FIND IT EXPEDIENT TO EXPLOIT A SUPPOSED RESENTMENT OF JEWISH POWER TO ATTACK THE ADL WHICH IS BEING PORTRAYED AS A SPYING AGENCY THROUGH WHICH JEWS WIELD ABUSIVE POWER THIS WEEK'S COVER STORY IN NEW YORK'S VILLAGE VOICE THE ANTIDEFAMATION LEAGUE IS SPYING ON YOU SUGGESTS THAT THE ANTIADL CAMPAIGN IS GOING NATIONAL THE TALE ORIGINATES IN THE ACTIVITIES OF INSPECTOR THOMAS GERARD OF THE SAN FRANCISCO POLICE DEPARTMENT A FORMER MEMBER OF THE DEPARTMENT'S NOWDEFUNCT INTELLIGENCE UNIT HE ALLEGEDLY PASSED ALONG POLICE FILES TO THE ADL THROUGH AN ART DEALER NAMED ROY BULLOCK MR BULLOCK HAS WORKED AS A CONTRACT EMPLOYEE FOR THE ADL FOR SEVERAL YEARS MAINLY MONITORING NEONAZI GROUPS HE IS CONSIDERED BY MANY HERE AS A HERO AS AN UNDERGROUND OPERATIVE HE PLAYED A CRUCIAL ROLE IN BRINGING TO JUSTICE COY RAY PHELPS KNOWN AS THE SYNAGOGUE BOMBER IN 1986 PHELPS PLACED BOMBS IN FIVE LOCATIONS IN SAN FRANCISCO INCLUDING TWO SYNAGOGUES THANKS IN PART TO INFORMATION MR BULLOCK PROVIDED PHELPS NOW RESIDES IN A PRISON FOR THE CRIMINALLY INSANE IN SPRINGFIELD MO MR BULLOCK'S ALLEGED COLLABORATOR MR GERARD IS KNOWN TO POLICE REPORTERS AND OTHERS AROUND SAN FRANCISCO'S HALL OF JUSTICE AS THE WEATHERMAN FOR HIS ABILITY TO PREDICT VIOLENT DEMONSTRATIONS BUT HE IS ALSO VIEWED AS A COWBOY WHO BOASTED INDISCRIMINATELY OF HIS INTELLIGENCE EXPLOITS HE HAS LATELY LEFT THE COUNTRY MR GERARD'S APPARENT MISHANDLING OF POLICE INFORMATION LED THE SAN FRANCISCO DISTRICT ATTORNEY'S OFFICE TO RAID THE ADL'S OFFICES IN EARLY APRIL WHERE IT SEIZED HUNDREDS OF FILES THE FILES THEMSELVES REMAIN SEALED BUT THEY ARE SAID TO REVEAL AN INTELLIGENCE NETWORK THAT INCLUDES THE SURVEILLANCE OF NUMEROUS LIBERAL AND LEFTWING GROUPS AND INDIVIDUALS AS WELL AS HATE GROUPS LIKE THE WHITE ARYAN RESISTANCE SAN FRANCISCO DISTRICT ATTORNEY ARLO SMITH DECRIED POLITICAL SURVEILLANCE AND HIS OFFICE ANNOUNCED THAT ADL EMPLOYEES COULD FACE FELONY CHARGES MANY RESIDENTS OF THE BAY AREA ARE BEWILDERED AT THE SCANDAL ALL EVIDENCE SHOWS THAT THE ADL'S MAIN CONCERN IS THE TRACKING OF NEONAZIS AND SKINHEADS PERHAPS THE MOST LOATHED ELEMENT OF THE LOCAL COMMUNITY AS FOR THE ADL'S MONITORING OF PALESTINIAN AND OTHER ARABORIENTED ACTIVITIES IT IS HARD TO IMAGINE ANYWHERE ELSE IN THE COUNTRY WHERE SUCH MONITORING WOULD BE CONSIDERED EXCEPTIONABLE PARTICULARLY IN LIGHT OF THE WORLD TRADE CENTER BOMBING BUT THIS IS SAN FRANCISCO WHERE THE POLITICAL CULTURE IS ANYTHING BUT REASONABLE ARAB IRISH AND OTHER LOCAL ADVOCACY GROUPS LEAPT INTO THE FRAY EARLY ON ALLEGING VIOLATION OF THEIR RIGHTS THAT MR BULLOCK HAD ALSO DONE POLITICAL RESEARCH FOR THE SOUTH AFRICAN GOVERNMENT SHARING THE PROFITS WITH MR GERARD INDEPENDENT OF HIS ADL WORK WAS DISINGENUOUSLY ADDED TO THE ATTACK ON HIM LEAVING THE STRONG SUGGESTION NOT UNCOMMON IN RADICAL POLEMICS THAT MR BULLOCK WAS PART OF SOME JERUSALEMPRETORIA AXIS BY MIDAPRIL A CIVIL SUIT AGAINST THE ADL ALLEGING VIOLATION OF STATE PRIVACY LAWS WAS FILED BY A GROUP OF 19 PURPORTED VICTIMS OF THE ORGANIZATION'S SURVEILLANCE THE SUIT WAS PRODUCED BY AN ANTIISRAEL COALITION RANGING FROM JEFFREY BLANKFORT EDITOR OF THE MIDDLE EAST LABOR BULLETIN THE BAY AREA'S MOST SHRILL PARTISAN OF ARAB DEMANDS TO FORMER REPUBLICAN REP PAUL MCCLOSKEY WHO HAS LONG PARADED AS A CHALLENGER OF THE ZIONIST LOBBY THE ADL HAS RESPONDED TO THESE CHARGES BY EMPHASIZING ITS RECORD IN COMBATING BIGOTRY ON BEHALF OF ALL AMERICANS INCLUDING ARABAMERICANS DURING THE GULF WAR THE ORGANIZATION INSISTS THAT IT WILL CONTINUE BALANCING FIRST AMENDMENT PRINCIPLES AND THE FIGHT AGAINST DANGEROUS EXTREMISTS WITH REFERENCE TO MR GERARD IT HAS CALLED ON THE SAN FRANCISCO POLICE DEPARTMENT TO STOP SEARCHING FOR A SCAPEGOAT FOR ITS OWN VIOLATIONS TO THIS OBSERVER IT IS HARD TO SEE HOW KEEPING FILES IS A CRIMINAL ACT COMPARABLE SAY WITH PLACING A BOMB IN A SYNAGOGUE OR HOW COLLECTING DATA DIFFERS FROM WHAT LEGIONS OF PRIVATE INVESTIGATORS AND REPORTERS DO EVERY DAY IS THERE NOT A RIGHT OF RESEARCH THAT IS EQUAL TO POLITICAL ADVOCATES' RIGHT OF PRIVACY ESPECIALLY WHEN THERE IS A POTENTIAL FOR VIOLENCE IN SAN FRANCISCO OBJECTIONS TO SURVEILLANCE ARISE WHEN THE SUBJECTS ARE LEFTWING THE TIMING OF THIS SCANDAL IS ODD IT COMES AT A TIME WHEN JEWISH AND MUSLIM COMMUNITY LEADERS ARE UNITED WITH THE ADL IN THE FOREFRONT OVER THE NEED FOR INTERVENTION IN BOSNIA MORE DISTURBINGLY IT COINCIDES WITH THE 50TH ANNIVERSARY OF THE WARSAW GHETTO UPRISING AND THE OPENING OF THE US HOLOCAUST MEMORIAL WHEN SAN FRANCISCO'S CHIEF OF PROTOCOL RICHARD GOLDMAN RETURNED FROM THE HOLOCAUST MEMORIAL'S OPENING CEREMONIES HE FOUND HIMSELF PURSUED BY REPORTERS THEY DEMANDED TO KNOW WHETHER ON BEHALF OF SAN FRANCISCO'S JEWISH COMMUNITY HE HAD SOUGHT TO QUASH AN INVESTIGATION OF THE ADL THEN AS IF IT WERE IN ITSELF SUSPICIOUS HE WAS ASKED WHETHER HE WAS AN ADL MEMBER NORMALLY SUCH A MEMBERSHIP WOULD BE A SOURCE OF PRIDE AFTER ALL THE ADL HAS CONSISTENTLY STOOD UP FOR THE RIGHTS OF MANY OF THE VERY PEOPLE THAT NOW SEEK TO ATTACK IT IN SAN FRANCISCO AT LEAST THAT COUNTS FOR VERY LITTLE RIGHT NOW MR SCHWARTZ IS A STAFF WRITER FOR THE SAN FRANCISCO CHRONICLE 9305070190 930507 WHO'S NEWS SOUTHLAND CORP SOUTHLAND CORP DALLAS PAUL L BUREAU JR 51 YEARS OLD CORPORATE TAX MANAGER OF THIS CONVENIENCE STORE RETAILER WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT 9305070189 930507 WHO'S NEWS COMMUNICATIONS SATELLITE CORP COMMUNICATIONS SATELLITE CORP WASHINGTON DC PAUL G PIZZANI 33 YEARS OLD WAS NAMED VICE PRESIDENT OF FINANCE AND BUSINESS PLANNING OF THE COMSAT INTERNATIONAL VENTURES UNIT A NEW POST THE UNIT DEVELOPS OVERSEAS TELECOMMUNICATIONS SERVICES JOINT VENTURES MR PIZZANI HAD BEEN COMSAT INTERNATIONAL VENTURES' DIRECTOR OF BUSINESS ANALYSIS COMMUNICATIONS SATELLITE OR COMSAT IS A PROVIDER OF SATELLITE SERVICES 9305070188 930507 WHO'S NEWS IPSCO INC IPSCO INC REGINA SASKATCHEWAN THREE DIRECTORS WERE ELECTED TO THE BOARD OF THIS STEELMAKER FILLING VACANCIES THE NEW DIRECTORS ARE BURTON M JOYCE 50 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OF TERRA INDUSTRIES INC SIOUX CITY IOWA JOHN B SCHWEMM 58 A FORMER CHAIRMAN OF RR DONNELLEY & SONS CO CHICAGO AND HAROLD H MACKAY 52 IPSCO SECRETARY AND A PARTNER IN THE LAW FIRM OF MACPHERSON LESLIE & TYERMAN 9305070187 930507 WHO'S NEWS LONDON FOG CORP LONDON FOG CORP ELDERSBURG MD DOUGLAS C HILLMAN 46 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS RAINWEAR COMPANY AND ITS LONDONTOWN CORP UNIT HE WAS NAMED TO LEAD A TRANSITION AFTER MARK H LIEBERMAN 56 CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT TOOK EARLY RETIREMENT THE COMPANY SAID A SPOKESMAN SAID MR LIEBERMAN WAS TRAVELING AND COULDN'T IMMEDIATELY BE REACHED FOR COMMENT MR HILLMAN RETAINS HIS TITLE AS EXECUTIVE VICE PRESIDENT SALES AND MARKETING ADDITIONALLY EDWARD M KRELL 30 WAS NAMED VICE PRESIDENT AND CORPORATE CONTROLLER TO SUCCEED THE LATE JOHN P CLARK MR KRELL HAD BEEN CONTROLLER OF THE FACTORY STORES DIVISION LONDON FOG IS MAJORITY OWNED BY MERRILL LYNCH CAPITAL PARTNERS AN AFFILIATE OF MERRILL LYNCH & CO 9305070186 930507 BP'S EARNINGS ROSE SHARPLY IN FIRST QUARTER COMPANY CREDITS COST CUTS AND DOLLAR'S RECOVERY FOR THIRD STRAIGHT GAIN A WALL STREET JOURNAL NEWS ROUNDUP LONDON BRITISH PETROLEUM CO PROFITS ARE CONTINUING TO RISE SMARTLY THE COMPANY YESTERDAY REPORTED AN INCREASE IN FIRSTQUARTER EARNINGS ITS THIRD CONSECUTIVE QUARTERLY IMPROVEMENT AND SAID ITS COSTCUTTING PROGRAM SHOULD HELP MAINTAIN THE IMPROVED LEVEL OF RESULTS BP SAID NET INCOME MORE THAN DOUBLED TO 249 MILLION 3899 MILLION IN THE FIRST QUARTER FROM 95 MILLION A YEAR EARLIER THE RESULTS WHICH WERE BETTER THAN EXPECTED ARE FIGURED ON A REPLACEMENTCOST BASIS WHICH EXCLUDES THE EFFECTS OF OILPRICE SWINGS THE OIL GIANT NONETHELESS DECIDED TO HALVE ITS FIRSTQUARTER DIVIDEND TO 21 PENCE A SHARE THE DIVIDEND CUT HOWEVER WASN'T A SURPRISE FIRSTQUARTER GROUP SALES GREW TO 911 BILLION FROM 774 BILLION A YEAR EARLIER BP SAID THE IMPROVEMENTS SEEN IN THE THIRD AND FOURTH QUARTER OF 1992 CONTINUED INTO THE FIRST QUARTER OF 1993 COST CUTTING AND THE BENEFITS OF A RECOVERY IN THE DOLLAR AGAINST STERLING MORE THAN OFFSET LOWER OIL PRICES AND WEAKER PROFIT MARGINS FROM REFINING AND MARKETING OPERATIONS BP SAID LOOKING AHEAD BP SAID IT EXPECTS CRUDEOIL PRICES TO REMAIN IN THEIR CURRENT TRADING RANGE FOR THE TIME BEING WITH THE DECISIONS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES DETERMINING PRICES IN THE SECOND QUARTER IT ADDED THAT IT EXPECTS OPERATING CONDITIONS TO REMAIN DIFFICULT DURING THE CURRENT YEAR BUT THAT CONTINUING EFFORTS TO CUT COSTS AND BOOST PROFITABILITY SHOULD HELP MAINTAIN THE IMPROVED LEVEL OF RESULTS SEEN OVER THE LAST THREE QUARTERS BP STOCK IS A WEAK HOLD SAID CHRISTINE BAKER AT LONDON BROKERAGE FIRM JAMES CAPEL & CO SHE SAID THAT IN THE LONGERTERM 1994 AND BEYOND BP MIGHT NOT BE ABLE TO DELIVER THE KIND OF PERFORMANCE THAT ITS STRING OF RECENT PROFIT GAINS MIGHT SUGGEST BUT THE FIRSTQUARTER RESULTS NONETHELESS WERE BETTER THAN EXPECTED MS BAKER ACKNOWLEDGED BP SAID ITS CONTINUING PROGRAM OF DIVESTMENT LOWER CAPITAL SPENDING AND MAINTAINING NET CASH INFLOWS FROM OPERATIONS RESULTED IN A REDUCTION OF BORROWING TO 145 BILLION THE COMPANY ENDED 1992 WITH 153 BILLION IN DEBT DOWN FROM A PEAK OF 16 BILLION AT MIDYEAR 1992 HOWEVER THE COMPANY SAID A TAX SETTLEMENT WITH ALASKA FOR WHICH IT HAS MADE A PROVISION WOULD DRAIN 630 MILLION FROM CASH FLOW IN THE SECOND QUARTER BP SAID DIVESTMENT PROCEEDS ALSO WERE LIKELY TO BE BELOW THE UNUSUALLY HIGH LEVELS OF THE LAST TWO QUARTERS BRITISH PETROLEUM CO PROPOSED A FIRSTQUARTER DIVIDEND OF 21 PENCE US 33 CENTS A SHARE UNCHANGED FROM THE PAYOUT IN THE FOURTH QUARTER FRIDAY'S EDITION SAID THE DIVIDEND WAS HALVED BUT DIDN'T SPECIFY THAT THAT COMPARISON WAS WITH THE 42PENCEASHARE DIVIDEND IN THE 1992 FIRST QUARTER