TOKYO WHEN THE JAPANESE UNITS OF MICROSOFT CORP AND LOTUS DEVELOPMENT CORP YESTERDAY SAID THEY WOULD SLASH PRICES ON SEVERAL SOFTWARE PACKAGES BY 26 TO 41 THEY BEAT THEIR JAPANESE COMPETITORS WITHOUT BREAKING A SWEAT THAT'S BECAUSE THEY DON'T HAVE ANY JAPANESE COMPETITORS IN SOFTWARE AT LEAST NOT ANY LARGE ENOUGH TO POSE A SIGNIFICANT THREAT INSTEAD THE VIRTUAL ABSENCE OF A JAPANESE SOFTWARE INDUSTRY HAS SPURRED A GOLD RUSH AMONG US COMPANIES WHO HAVE COME FLOODING INTO JAPAN IN RECORD NUMBERS TO FILL THE GAP EVERY OTHER DAY IT SEEMS LIKE THERE'S ANOTHER US COMPANY SIGNING AN AGREEMENT WITH SOMEBODY WHO'S GOING TO DISTRIBUTE THEIR PRODUCT SAYS DAVID POLLACK MANAGER OF INDUSTRY SERVICES AT THE AMERICAN ELECTRONICS ASSOCIATION IN TOKYO THERE'S A GEOMETRIC GROWTH IN THE NUMBER OF SOFTWARE COMPANIES THAT HAVE ENTERED THE MARKET IN THE LAST FIVE YEARS NEC CORP SONY CORP AND THEIR BRETHREN THE SAME HUGE FIRMS THAT SUCCESSFULLY DROVE MANY US COMPANIES OUT OF BUSINESSES SUCH AS CONSUMER ELECTRONICS AND COMPUTER MEMORY CHIPSHAVE PROVEN A BUST WHEN IT COMES TO WRITING AND MARKETING SOFTWARE FOR A MASS MARKET DESPITE DIRE PREDICTIONS TWO YEARS AGO THAT JAPANESE SOFTWARE FACTORIES WOULD STEAMROLLER THEIR MORE INDIVIDUALISTIC US COMPETITORS US COMPANIES REMAIN WORLD LEADERS IN PRODUCING COMPUTER SOFTWARE A MARKET ESTIMATED TO HAVE HAD MORE THAN 25 BILLION IN SALES IN 1991 ALONE JAPAN'S FAILURE TO DEVELOP A STRONG SOFTWARE BUSINESS HAS HAD SERIOUS REPERCUSSIONS FOR ITS ELECTRONICS SECTOR COMPUTER PRICES HAVE SPIRALED DOWNWARD IN RECENT YEARS AS HARDWARE BECAME STANDARDIZED LEAVING MANUFACTURERS FEW WAYS TO ATTRACT CUSTOMERS EXCEPT WITH EVERLOWER PRICES AS A RESULT MUCH OF THE PROFIT IN THE COMPUTER INDUSTRY THESE DAYS COMES FROM THE SOFTWARE BUSINESS WHICH BECAUSE IT OPERATES BY A DIFFERENT SET OF RULES THAN THE HARDWARE BUSINESS THE JAPANESE KNOW SO WELL HAS TENDED TO CONFOUND THIS COUNTRY'S ELECTRONICS GIANTS THERE IS CLEARLY A STRONG TREND TOWARD SOFTWARE COMPANIES AS LEADERS IN THE INFORMATION TECHNOLOGY INDUSTRY IN THE US SAYS YOSHIZO HAYASHI AN OFFICIAL AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY HOWEVER WE HAVEN'T SEEN ANY NEW LEADING COMPANIES ON THE SIDE OF SOFTWARE IN JAPAN PART OF THE REASON SAY OBSERVERS LIKE MR HAYASHI IS THAT JAPANESE COMPANIES WERE SLOW TO SEE SOFTWARE AS A PRODUCT DISTINCT FROM HARDWARE BECAUSE JAPAN'S COMPUTER MANUFACTURERS HAVE LONG ESSENTIALLY DONE SOFTWARE FOR FREE WHILE BOOSTING THE COST OF THEIR HARDWARE SYSTEMS MR HAYASHI SAYS THOSE COMPANIES GAVE THE WORK TO SUBCONTRACTORS AND LET THEM DO IT AS CHEAPLY AS POSSIBLE THAT ARRANGEMENT TENDED TO STUNT THE JAPANESE SOFTWARE HOUSES WHICH GREW EXPERT AT CHURNING OUT CODE TO STRICT CONTRACTOR SPECIFICATIONS INSTEAD OF LEARNING HOW TO MAKE PRODUCTS THAT APPEALED TO A MASS MARKET OF PC USERS AT THE SAME TIME THEIR OPPORTUNITIES TO BRANCH OUT INTO THAT MASS MARKET WERE LIMITED BY THE POPULARITY OF STANDALONE WORD PROCESSORS WHICH USE BUILTIN SOFTWARE AND THE SLOW GROWTH OF PCS WHICH IN JAPAN WERE MOSTLY INCOMPATIBLE WITH ONE ANOTHER ANYWAY THERE IS ONE STRIKING EXCEPTION TO THIS PATTERN JAPAN'S BOOMING VIDEOGAME INDUSTRY WHICH IS DOMINATED BY THE GIANTS NINTENDO CO AND SEGA ENTERPRISES LTD AND A COLLECTION OF SMALLER GAME SOFTWARE COMPANIES THANKS TO THEIR INDEPENDENCE FROM MAINSTREAM COMPUTER CONTRACTORS THE GAME COMPANIES WERE ABLE TO HARNESS THEIR PROGRAMMERS' UNIMPEDED CREATIVITY SENDING PROFITS SKYROCKETING NINTENDO IN FACT IS PROJECTED TO BE JAPAN'S THIRDMOSTPROFITABLE COMPANY OUTSIDE THE BANKING SECTOR FOR THE YEAR THAT ENDED MARCH 31 OUTSIDE OF GAMES HOWEVER ONLY A HANDFUL OF JAPANESE COMPANIES HAVE MADE ANY HEADWAY IN THE SOFTWARE BUSINESS NOW MICROSOFT AND LOTUS ARE THREATENING EVEN THOSE MODEST GAINS WITH A PRICECUTTING STRATEGY THAT THEIR MUCH SMALLER JAPANESE RIVALS CAN'T HOPE TO MATCH UNTIL NOW THE US FIRMS HAVE RELIED HEAVILY ON SPECIAL PROMOTIONS IN WHICH THEY TEMPORARILY CUT SOFTWARE PRICES 60 OR MORE YESTERDAY HOWEVER LOTUS SAID IT WOULD PERMANENTLY CUT THE SUGGESTED RETAIL PRICES OF ITS POPULAR 123 SPREADSHEET AND ITS FREELANCE GRAPHICS PRESENTATION PROGRAM 41 TO 58000 YEN 526 FROM 98000 YEN BOTH PROGRAMS LIST FOR 495 IN THE US MICROSOFT'S JAPAN UNIT ALSO SAID IT WOULD CUT THE PRICE OF ITS WORKS SOFTWARE PACKAGE WHICH COMBINES A SPREADSHEET WORD PROCESSOR AND DATABASE BY 26 TO 29800 YEN FROM 40000 YEN US LIST PRICES FOR WORKS RANGE FROM 149 TO 249 MICROSOFT'S PRICE CUT IN JAPAN WILL TAKE EFFECT MAY 28 THE LOTUS PRICE CUTS WILL BEGIN IN LATE JUNE OR EARLY JULY WHEN IT PLANS TO RELEASE THE LATEST VERSION OF ITS SOFTWARE HARDWARE PRICE DECLINES BOTH COMPANIES CITED RECENT SHARP DECLINES IN HARDWARE PRICES THE RESULT OF A PC PRICE WAR STARTED IN JAPAN THIS PAST OCTOBER BY COMPAQ COMPUTER CORP AS THE REASON FOR THEIR PRICECUTTING PRIOR TO THE JUSTANNOUNCED CUTS MANY POPULAR SOFTWARE PACKAGES WERE NEARLY AS EXPENSIVE IN JAPAN AS LOWEND PCS LOTUS ADDED THAT THE RECENT RISE OF THE YEN AGAINST THE DOLLAR MADE THE PRICE REDUCTIONS EASIER TO BEAR A STRONG YEN MAKES IT CHEAPER TO IMPORT PRODUCTS TO JAPAN ALTHOUGH THE JAPANESE HAVE COMPLAINED THAT US COMPANIES DON'T CUT THEIR PRICES WHEN THE YEN APPRECIATES AND PREFER INSTEAD TO TAKE THE EXTRA PROFIT IN FACT LOTUS SAID IT WOULD HAVE CUT ITS PRICES EVEN IF THE YEN HADN'T RISEN LOTUS AND MICROSOFT ARE ALSO CLEARLY BEGINNING TO JOSTLE FOR POSITION IN ANTICIPATION OF MAY 17 WHEN MICROSOFT IS SCHEDULED TO RELEASE THE LATEST JAPANESELANGUAGE VERSION OF ITS POPULAR WINDOWS INTERFACE PROGRAM WINDOWS WHICH PLAYED A BIG ROLE IN KICKING OFF THE CURRENT PC BOOM IN THE US IS EXPECTED TO HAVE A SIMILAR IMPACT IN JAPAN BY MAKING PCS EASIER TO USE 9305070184 930507 DIVIDEND NEWS PAINEWEBBER GROUP INC PAINEWEBBER GROUP INC NEW YORK BOOSTED ITS QUARTERLY DIVIDEND 25 DECLARING A DIVIDEND OF 15 CENTS PAYABLE JULY 2 TO HOLDERS OF RECORD JUNE 1 THE BROKERAGE AND INVESTMENT BANKING COMPANY PREVIOUSLY PAID 12 CENTS QUARTERLY 9305070182 930507 OTC FOCUS SELLING TRIGGERED BY JOBSDATA FEARS ENDS MARKET'S 7SESSION WINNING STREAK BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SELLING IN ALMOST EVERY GROUP PROMPTED BY NERVOUSNESS AHEAD OF TODAY'S APRIL EMPLOYMENT DATA ENDED THE NASDAQ MARKET'S SEVENDAY WINNING STREAK INVESTORS DITCHED THEIR MEDICALRELATED HOLDINGS AND TECHNOLOGY BANK AND OTHER FINANCE STOCKS GOT SLAMMED BUT TRANSPORTATION ISSUES SHOWED FIRMNESS THE NASDAQ COMPOSITE INDEX PULLED BACK FOR THE FIRST TIME SINCE APRIL 26 IT STARTED THE SESSION FRACTIONALLY HIGHER CRAWLED SLOWLY INTO NEGATIVE TERRITORY AND GAVE UP 322 POINTS OR 047 TO FINISH AT 68004 DECLINING ISSUES TOPPED GAINERS 13401326 NASDAQ NATIONAL MARKET SYSTEM VOLUME TOTALED 218 MILLION SHARES COMPARED WITH 2511 MILLION ON WEDNESDAY SOME TRADERS SAID WEAKER BONDS DIDN'T HELP MATTERS NOR DID THE TREASURY'S ANNOUNCEMENT WEDNESDAY THAT IT PLANS TO CUT SALES OF 30YEAR BONDS AND STOP SELLING SEVENYEAR NOTES THE INITIAL REACTION TO THIS IS NOT A POSITIVE ONE SAID JEFF KENIS VICE PRESIDENT EQUITY TRADING AT ROBINSON HUMPHREY PEOPLE ARE AFRAID IT'S GOING TO AFFECT RATES NEGATIVELY THE TREASURY'S LONG BOND FELL 025POINT YESTERDAY PUSHING ITS YIELD TO ABOUT 68 TRADING ON THE NEW YORK STOCK EXCHANGE WAS VOLATILE BUT ENDED MIXED BY A VERY NARROW MARGIN THE DOW JONES INDUSTRIAL AVERAGE FELL 720 POINTS OR 021 TO 344190 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FINISHED 050 POINT LOWER OR 020 AT 24522 DECLINERS TOPPED ADVANCERS BY ONLY THREE ISSUES OBSERVERS NOTICED PROFITTAKING IN SOME OF THE SECTORS THAT HAVE PROPPED UP THE OVERTHECOUNTER MARKET THE MOST LATELY AND THEY CITED CONCERN OVER THE POSSIBILITY THAT TODAY'S EMPLOYMENT REPORT MIGHT HIGHLIGHT A GENERALLY SLUGGISH ECONOMY THE GOVERNMENT REPORT IS EXPECTED BY ECONOMISTS TO SHOW A RISE IN NONFARM PAYROLLS OF 163000 FOR APRIL AFTER DECLINING 22000 IN MARCH ANALYSTS THINK THE UNEMPLOYMENT RATE WAS UNCHANGED AT 7 THE BIOTECHS AND HEALTHCARE ISSUES GAVE EVERYTHING BACK TODAY THURSDAY AS INVESTORS STARTED TAKING PROFITS SAID DAVID MARINO VICE PRESIDENT EQUITY TRADING AT SCOTT & STRINGFELLOW FINANCIAL ROBINSON HUMPHREY'S MR KENIS AGREED SAYING UNCERTAINTY BREEDS CONFUSION ANY TIME THERE'S CONFUSION PEOPLE HAVE A TENDENCY TO PULL BACK OR BAIL OUT THE ONLY ECONOMIC DATA RELEASED YESTERDAY HAD LITTLE IMPACT ON OTC MARKET ACTION TRADERS SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE BENEFITS IN THE MAY 1 WEEK STOOD UNCHANGED FROM THE PREVIOUS WEEK AT 346000 ECONOMISTS HAD EXPECTED THE NUMBER TO INCREASE BY ABOUT 3000 ALTHOUGH MARKET WATCHERS AGREED THAT YESTERDAY'S NEWS OUT OF BOSNIA WASN'T THE PRIMARY REASON FOR JITTERY INVESTOR SENTIMENT THEY SAID IT WAS CERTAINLY IN THE BACK OF EVERYONE'S MIND BOSNIAN SERBS HAVE REJECTED A PEACE ACCORD AND PRESIDENT CLINTON HAS CALLED ON RELUCTANT WESTERN ALLIES TO SUPPORT TOUGHER MEASURES AGAINST SERBIAN FORCES HEALTHCARE ISSUES SUCH AS IMMUNEX POSTED HUGE LOSSES THE SEATTLE BIOTECHNOLOGY COMPANY RETREATED 3 TO 51 AFTER MONTGOMERY SECURITIES LOWERED ITS INVESTMENT RATING TO HOLD FROM BUY ON A PRICE BASIS HOWEVER THE STOCK HAD RISEN 2 1/2 POINTS WEDNESDAY FOLLOWING A DILLON READ ANALYST'S POSITIVE COMMENTS ON THE COMPANY'S PIXY321 BLOODCELL DRUG MEDIMMUNE OF GAITHERSBURG MD SLIPPED 1 1/4 TO 17 DESPITE SAYING THAT A THREEYEAR MULTICENTER TRIAL SHOWS ITS RESPIVIR MEDICAL THERAPY TO BE EFFECTIVE IN PREVENTING SEVERE SOMETIMES FATAL LUNG INFECTIONS IN HIGHRISK INFANTS AND CHILDREN THE STOCK HAD RISEN 1 1/2 WEDNESDAY A PAINEWEBBER UPGRADE DID LITTLE FOR US HEALTHCARE BLUE BELL PA WHICH TUMBLED 3 1/4 TO 46 1/4 IN ACTIVE TRADING THE BROKERAGE FIRM BOOSTED THE HEALTH MAINTENANCE ORGANIZATION OPERATOR'S INVESTMENT RATING TO ATTRACTIVE FROM NEUTRAL CHIRON OF EMERYVILLE CALIF ALSO SLUMPED DESPITE POSITIVE NEWS FALLING 1 TO 56 7/8 THE BIOTECH COMPANY REPORTED FIRSTQUARTER NET INCOME OF EIGHT CENTS A SHARE COMPARED WITH A LOSS OF 141 A SHARE ON A CHARGE A YEAR EARLIER ANALYSTS HAD EXPECTED THE COMPANY TO EARN JUST FIVE CENTS A SHARE IN THE QUARTER ALSO LOWER WERE AMGEN WHICH FELL 1 TO 41 1/2 AND ACTIVELY TRADED MEDCO CONTAINMENT SERVICES WHICH DROPPED 3/4 TO 30 1/4 GENA BUCKED THE TREND BY CLIMBING 1 1/2 TO 10 THE SAN DIEGO PHARMACEUTICALS COMPANY SAID IT SIGNED AN AGREEMENT WITH A FRENCH RESEARCH GROUP TO CONDUCT CLINICAL TRIALS ON AS MANY AS NINE PRODUCTS IT'S DEVELOPING EITHER ALONE OR JOINTLY WITH JAGOTEC THE TECHNOLOGY SECTOR TOOK ITS LUMPS MICROSOFT FOR EXAMPLE SLID 2 TO 87 1/4 THE REDMOND WASH COMPUTER CONCERN UNVEILED MICROSOFT WORD VERSION 60 AN UPGRADE TO MICROSOFT WORD FOR THE MSDOS OPERATING SYSTEM OTHER LOSERS FOR THE DAY INCLUDED ADOBE SYSTEMS WHICH GAVE UP 1 3/4 TO 59 1/4 AND LOTUS WHICH TOPPED THE MOSTACTIVES LIST AND EASED 3/8 TO 30 1/2 TRANSPORTATION STOCKS AS A GROUP PERFORMED WELL AND THE NASDAQ TRANSPORTATION INDEX SURGED TO A HIGH GAINING 601 POINTS OR 088 TO FINISH AT 68352 ROADWAY SERVICES OF AKRON OHIO MOVED 1 3/4 HIGHER TO 58 3/4 MERRILL LYNCH RAISED ITS INTERMEDIATE AND LONGTERM RATINGS ON THE HOLDING COMPANY CITING THE STOCK'S RECENT PRICE DECLINE AND ITS AGGRESSIVE INVESTMENT PROGRAM BANKS AND OTHER FINANCE ISSUES WERE MOSTLY LOWER FIRST INDIANA SAGGED 1 3/4 TO 18 BSB BANCORP SANK 1 1/4 TO 32 AND CRESTAR FINANCIAL RELINQUISHED 1 3/4 TO 39 5/8 ROCHESTER COMMUNITY SAVINGS HOWEVER ADVANCED 1 1/8 TO 18 7/8 THE COMPANY SAID WEDNESDAY THAT IT RECEIVED A TAKEOVER OFFER FIRST EMPIRE AND KEYCORP ARE RUMORED TO BE INTERESTED IN ACQUIRING ROCHESTER COMMUNITY ON THE AMERICAN STOCK EXCHANGE FIRST EMPIRE EASED 3/4 TO 148 1/2 KEYCORP GAVE UP 3/8 TO CLOSE AT 38 1/2 ON THE NEW YORK STOCK EXCHANGE 9305070181 930507 FOREIGN EXCHANGE DOLLAR DECLINES AS NERVOUSNESS BUILDS OVER RELEASE OF APRIL EMPLOYMENT DATA BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR MOVED LOWER AGAINST MOST MAJOR FOREIGN CURRENCIES AMID CONCERN THAT TODAY'S REPORT ON APRIL EMPLOYMENT IN THE US MIGHT NOT MEET EXPECTATIONS GROWING PESSIMISM REGARDING THE JOBS REPORT OVERSHADOWED A VARIETY OF MIXED ECONOMIC DATA RELEASED IN THE US AND GERMANY YESTERDAY TRADERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15740 MARKS DOWN FROM 15805 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11004 YEN DOWN FROM 11045 YEN STERLING WAS TRADING AT 15805 UP FROM 15650 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10998 YEN AND AT 15730 MARKS THE MARKET IS BASICALLY POSTURING FOR TODAY'S EMPLOYMENT NUMBER THERE'S A SENSE THAT THERE'S ONLY ROOM FOR DISAPPOINTMENT SAID ALFONSO ALEJO VICE PRESIDENT OF CORPORATE FOREIGN EXCHANGE AT SAKURA BANK LTD ACCORDING TO A SURVEY OF ECONOMISTS BY DOW JONES CAPITAL MARKETS REPORT US NONFARM PAYROLLS ARE ESTIMATED TO HAVE RISEN BY 163000 IN APRIL REBOUNDING FROM A DECLINE OF 22000 IN MARCH BUT BECAUSE OF A SERIES OF WEAKERTHANEXPECTED US ECONOMIC DATA IN THE PAST SEVERAL WEEKS MANY TRADERS NOW EXPECT THE EMPLOYMENT FIGURES WILL BE ON THE LOW SIDE OF RECENT PROJECTIONS RATHER THAN ON THE HIGH SIDE DEALERS SAID THE NUMBERS WERE SO BAD IN MARCH THAT IT'S DIFFICULT TO CONCEIVE THAT IT WAS JUST A WEATHERRELATED DROP SAID CHARLES SPENCE CORPORATE FOREIGN EXCHANGE MANAGER AT STANDARD CHARTERED BANK OF LOS ANGELES BECAUSE OF THE SINKING EXPECTATIONS ABOUT THE EMPLOYMENT REPORT WHICH IS WIDELY REGARDED AS THE MOST IMPORTANT US ECONOMIC INDICATOR OF THE MONTH TRADERS BEGAN TO SELL THE DOLLAR YESTERDAY MR ALEJO SAID US WEEKLY UNEMPLOYMENT DATA RELEASED YESTERDAY FELL IN LINE WITH MARKET EXPECTATIONS AND CAUSED ALMOST NO REACTION TRADERS SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE WERE UNCHANGED IN THE WEEK ENDED MAY 1 FROM A REVISED 346000 IN THE PREVIOUS WEEK A LARGERTHANEXPECTED DROP IN WESTERN GERMAN MARCH MANUFACTURING ORDERS AND AN INCREASE IN WESTERN GERMAN APRIL UNEMPLOYMENT ALSO HAD LITTLE IMPACT ON TRADING PARTICIPANTS SAID WESTERN GERMAN MANUFACTURING ORDERS FELL A SEASONALLY ADJUSTED 3 IN MARCH THE ECONOMICS MINISTRY SAID IN A PRELIMINARY REPORT UNEMPLOYMENT IN WESTERN GERMANY ROSE A SEASONALLY ADJUSTED 35000 IN APRIL LESS THAN THE EXPECTED INCREASE OF 53000 THE GERMAN DATA ABSOLUTELY POINT TO WEAKNESS IN THE GERMAN ECONOMY AND INCREASE THE LIKELIHOOD OF A MORE RAPID PACE TO REDUCTIONS IN GERMAN INTEREST RATES SAID LOUIS RAPPAPORT FOREIGN EXCHANGE MANAGER AT SOCIETE GENERALE HOWEVER BECAUSE IT WILL BE TWO WEEKS BEFORE THE BUNDESBANK'S RATESETTING CENTRAL BANK COUNCIL NEXT MEETS THE DATA WERE SHRUGGED OFF HE SAID THIS MARKET IS VERY SHORTSIGHTED THEY'D RATHER BOUNCE ANOTHER BALL AROUND NOW MR RAPPAPORT SAID THAT BALL HE ADDED IS THE US APRIL JOBS DATA THE BUNDESBANK'S CENTRAL BANK COUNCIL WHICH WAS MEETING AS THE GERMAN JOBS AND MANUFACTURING STATISTICS WERE RELEASED LEFT KEY OFFICIAL INTEREST RATES UNCHANGED DESPITE THE RETURN OF JAPANESE TRADERS FROM A HOLIDAY YEN TRADING REMAINED SUBDUED DEALERS SAID RUMORS THAT THE BANK OF JAPAN INTERVENED TO BUY DOLLARS AROUND 1100011020 YEN IN ASIAN TRADING KEPT TRADERS FROM ATTEMPTING TO PUSH THE YEN MUCH ABOVE THOSE LEVELS SAID STANDARD CHARTERED'S MR SPENCE THE BANK OF FRANCE TRIMMED ITS MONEYMARKET INTERVENTION RATE TO 8 FROM 825 AND EASED ITS 5TO10DAY REPURCHASE RATE TO 9 FROM 925 THE FRANC'S GENERAL RESILIENCE IS A CONTINUING INDICATION THAT SPECULATIVE PRESSURE IS OFF THE FRENCH CURRENCY MR SPENCE SAID 9305070180 930507 VONTOBELS PLAN TO GIVE UP CONTROL OF BANKING GROUP BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH THE VONTOBEL FAMILY ARISTOCRATS OF SWISS PRIVATE BANKING WILL GRADUALLY RELINQUISH CONTROL OVER VONTOBEL HOLDING LTD IN A LONGTERM STRATEGY DESIGNED TO PRESERVE THE GROUP'S INDEPENDENCE IN ANNOUNCING A RESTRUCTURING OF FAMILYOWNED STOCK IN THE FINANCIALSERVICES AND CONSULTING GROUP CHAIRMAN HANSDIETER VONTOBEL SAID THE GROUP SHOULD AND MUST EMANCIPATE ITSELF FROM THE MANAGEMENT AND CAPITAL CONTROL OF THE VONTOBEL FAMILY THE BANK FACES A SUCCESSION PROBLEM MR VONTOBEL WHO AT 49 YEARS OF AGE REPRESENTS THE THIRD GENERATION IN THE FAMILY BUSINESS HAS NO CHILDREN AT A NEWS CONFERENCE MR VONTOBEL SAID THE BOARD WOULD BE ASKED TO APPROVE A 10FOR1 SHARE SPLIT TO MAKE THE COMPANY'S HEAVILY PRICED STOCK MORE ACCESSIBLE TO THE PUBLIC ON THURSDAY VONTOBEL BEARER SHARES CLOSED ON THE ZURICH STOCK EXCHANGE AT 7100 SWISS FRANCS 5009 UP 100 FRANCS VONTOBEL HOLDING CONTROLS BANK J VONTOBEL & CO ONE OF SWITZERLAND'S MOST PRESTIGIOUS PRIVATE BANKS A LEADER IN SWISS BROKERAGE ACTIVITIES AND IN PORTFOLIO MANAGEMENT FOR THE WORLD'S WEALTHY IN DESCRIBING THE RESTRUCTURING MR VONTOBEL SAID A NONPROFIT FOUNDATION WOULD BE SET UP HIS FATHER 77YEAROLD HANS VONTOBEL WOULD TRANSFER A LARGE BLOCK OF REGISTERED SHARES TO THE FOUNDATION GIVING IT 19 OF THE VOTING RIGHTS IN VONTOBEL HOLDING ANALYSTS ESTIMATE THE VALUE OF HANS VONTOBEL'S GIFT TO THE FOUNDATION WHICH WILL SUPPORT EDUCATIONAL AND CHARITABLE PROJECTS AT A MINIMUM 69 MILLION FRANCS 487 MILLION PUTTING A VALUE ON THE 40000 SHARES TO BE TRANSFERRED BY HANS VONTOBEL IS DIFFICULT AS VONTOBEL REGISTERED STOCK ISN'T TRADED THE FAMILY WILL BE REPRESENTED ON THE FOUNDATION'S BOARD SAID HANSDIETER VONTOBEL BUT MAJORITY INFLUENCE WOULD REST WITH INDEPENDENT OUTSIDE DIRECTORS HE DIDN'T SAY WHO THESE DIRECTORS WOULD BE THE PROPOSED CHANGE WOULD LEAVE THE FAMILY WITH CONTROL OF 63 OF VONTOBEL HOLDING'S VOTES WITH 24 HELD BY HANS VONTOBEL 30 BY HANSDIETER VONTOBEL AND 9 BY RUTH DE LA COURVONTOBEL HIS SISTER HANSDIETER VONTOBEL SAID HE WOULD TRANSFER HIS STOCK IN VONTOBEL HOLDING TO THE FOUNDATION AT A FUTURE DATE MEANWHILE THE VONTOBEL FAMILY WILL SEEK A SOLUTION FOR THE SUCCESSION PROBLEM VARIOUS SOLUTIONS WERE POSSIBLE HE SAID INCLUDING A COOPERATION WITH ANOTHER FAMILY BANK OR A PARTNERSHIP COMPOSED OF THE GROUP'S MANAGEMENT BUT THE FAMILY WOULDN'T AGREE TO A TAKEOVER BY A LARGE BANK DESPITE CONSTANT OVERTURES HE SAID IN THE LAST DECADE NUMEROUS EUROPEAN PRIVATE BANKS HAVE BEEN TAKEN OVER BY LARGER INSTITUTIONS AS THEY BATTLED WITH SUCCESSION PROBLEMS OR SOUGHT MORE CAPITAL BACKING MR VONTOBEL SAID HIS COMPANY WAS OVERCAPITALIZED WHEN A SOLUTION IS FOUND WHICH COULD TAKE UNTIL 2000 HE ADDED THE SHARES IN THE FOUNDATION COULD BE SOLD TO THE NEW PARTNER THE LIQUID FUNDS FROM ANY DEAL WOULD REMAIN IN THE FOUNDATION FOR USE IN FINANCING EDUCATIONAL PROGRAMS OR CHARITY IN A NEWS RELEASE VONTOBEL HOLDING SAID ITS NET PROFIT FOR THE YEAR ENDED MARCH 31 ROSE 22 TO 172 MILLION FRANCS FROM 141 MILLION FRANCS A YEAR EARLIER THE COMPANY CALLED THE RESULTS VERY GOOD CASH FLOW CAME TO 271 MILLION FRANCS UP 28 FROM 211 MILLION FRANCS IN 1992 THE HIGHEST LEVEL SINCE THE COMPANY'S INCEPTION THE BOARD IS PROPOSING AN INCREASE IN THE DIVIDEND TO 135 FRANCS 9524 FROM 125 FRANCS 9305070179 930507 INTERPROVINCIAL PLANS ACQUISITIONS FOR 394 MILLION BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL A YEAR AFTER BEING SPUN OFF BY REAL ESTATE GIANT OLYMPIA & YORK DEVELOPMENTS LTD INTERPROVINCIAL PIPE LINE SYSTEM INC HAS PUT TOGETHER AN AMBITIOUS GROWTH PLAN THAT CALLS FOR SPENDING ABOUT 500 MILLION CANADIAN DOLLARS US394 MILLION ON ACQUISITIONS IN THE NEAR FUTURE BRIAN MACNEILL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE CRUDE OIL PIPELINE CONCERN SAID INTERPROVINCIAL WANTS TO TAKE ADVANTAGE OF ITS FINANCIAL FLEXIBILITY AND THE NEW OPPORTUNITIES PRESENTING THEMSELVES IN THE MARKET THESE CHANCES DON'T COME ALONG EVERY DAY BUT WE'VE SEEN A FEW GOOD POTENTIAL INVESTMENTS MR MACNEILL SAID HE SAID THE COMPANY HAD FOR EXAMPLE LAST YEAR CONTEMPLATED BIDDING TO ACQUIRE UNION ENERGY INC A HOLDING COMPANY WHICH OWNS CANADA'S SECONDLARGEST NATURAL GAS UTILITY WESTCOAST ENERGY LTD OF VANCOUVER EVENTUALLY ACQUIRED UNION MR MACNEILL SAID INTERPROVINCIAL WILL VERY ACTIVELY PURSUE ACQUISITIONS IN THE PIPELINE BUSINESS OR MANAGING RATEREGULATED COMPANIES IN NORTH AMERICA OR INTERNATIONALLY CURRENTLY INTERPROVINCIAL HAS ABOUT C320 MILLION IN CASH ON ITS BOOKS THE REMAINDER OF THE PROCEEDS FROM THE SALE OF 80 OF ITS INTEREST IN ITS US PIPELINE BUSINESS TO A LIMITED PARTNERSHIP LAST YEAR MR MACNEILL SAID THE COMPANY COULD USE AS MUCH AS C250 MILLION OF THAT TO FINANCE ACQUISITIONS MUCH OF THE REST IS LIKELY TO GO TOWARD PAYING SOME OF THE COSTS ASSOCIATED WITH AMBITIOUS EXPANSION PLANS ON TOP OF THE C12 BILLION THE COMPANY EXPECTS TO PAY TO MAINTAIN ITS EXISTING CRUDE OIL TRANSPORTATION NETWORK OVER THE NEXT DECADE NEW EXPANSION PROJECTS COULD ADD ANOTHER C1 BILLION OR MORE TOP OF THE LIST FOR INTERPROVINCIAL IS AN EXPANSION TO ITS MAINLINE THAT WOULD ALLOW IT TO BOOST SHIPMENTS INTO THE KEY CHICAGO CRUDE OIL MARKET INTERPROVINCIAL HAS BEEN FORCED TO RATION SPACE ON ITS PIPELINE IN 27 OF THE PAST 28 MONTHS CUTTING PROPOSED SHIPMENTS BY AS MUCH AS 30 BECAUSE THE PIPELINE ALREADY OPERATES AT FULL CAPACITY AS A RESULT MR MACNEILL SAYS SOME OIL PRODUCERS HAVE HAD TO DIVERT OUTPUT TO LESS LUCRATIVE MARKETS WHILE THE CHICAGO MARKET CONCERNED OVER THE UNCERTAIN CAPACITY OUTLOOK HAS DISCOUNTED THE PRICE PAID FOR CANADIAN PRODUCTION INTERPROVINCIAL COULD FILE FOR PERMISSION TO EXPAND ITS PIPELINE SYSTEM'S CAPACITY BY ABOUT 110000 BARRELS DAILY BY THE END OF THE SUMMER MR MACNEILL SAID THAT PROGRAM ALONE WOULD COST THE COMPANY ABOUT C275 MILLION A PROPOSAL TO REVERSE A CRUDE OIL PIPELINE IN EASTERN CANADA LIKELY WILL COST ANOTHER C40 MILLION WHILE A QUEBEC PIPELINE TO BE BUILT THIS YEAR CARRIES A PRICE TAG OF C117 MILLION A NEW NATURAL GAS PIPELINE COULD COST ANOTHER C70 MILLION OVER THE NEXT THREE YEARS IN ADDITION INTERPROVINCIAL MAY LAUNCH A C700 MILLION PROGRAM TO ACQUIRE OWNERSHIP OF THE CRUDE OIL THAT TRAVELS THROUGH ITS PIPELINE 9305070178 930507 HECHINGER'S APRIL SALES ROSE 14 LANDOVER MD HECHINGER CO SAID APRIL SALES ROSE 14 TO 195 MILLION FROM 171 MILLION WHILE COMPARABLE STORE SALES ROSE 3 THE HOME IMPROVEMENT RETAILER OPERATES 122 HOME CENTERS IN 18 STATES AND THE DISTRICT OF COLUMBIA 9305070177 930507 FINANCING BUSINESS HELIONETICS INC HELIONETICS INC IRVINE CALIF SAID IT PLANS TO SELL ITS TRILITE SUBSIDIARY WHICH WOULD BECOME A SEPARATELY TRADED PUBLIC COMPANY DICKINSON & CO AN INVESTMENTBANKING COMPANY IN PHOENIX ARIZ HAS AGREED TO UNDERWRITE THE INITIAL PUBLIC OFFERING OF ONE MILLION UNITS IN TRILITE TRILITE MAKES PRODUCTS AND OFFERS SERVICES THAT HELP COMPANIES REDUCE UTILITY COSTS TRILITE EXPECTS THE OFFERING TO RAISE ABOUT 5 MILLION SAID ALVIN A KATZ TRILITE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE MAJOR PORTION OF THE PROCEEDS WILL GO TO TRILITE MR KATZ SAID WITH SOME GOING TO PAY DEBT THE COMPANY OWES HELIONETICS MR KATZ IS THE YOUNGER BROTHER OF BERNARD B KATZ CHAIRMAN OF HELIONETICS 9305070176 930507 CHINA SHRUGS OFF PULLOUT OVER RIGHTS BY LEVI STRAUSS SPECIAL TO THE WALL STREET JOURNAL BEIJING CHINA SHRUGGING OFF A SNUB FROM A MAJOR US COMPANY SAID THAT CLOTHING MAKER LEVI STRAUSS & CO DOESN'T NEED TO USE THE EXCUSE OF HUMAN RIGHTS TO PULL OUT OF ITS OPERATIONS IN CHINA EARLIER THIS MONTH LEVI STRAUSS SAID IT WOULD PHASE OUT CLOTHING PURCHASES FROM CONTRACTORS IN CHINA BECAUSE OF CHINA'S HUMAN RIGHTS RECORD FOREIGN MINISTRY SPOKESMAN WU JIANMIN PLAYED DOWN THE SIGNIFICANCE OF LEVI STRAUSS'S WITHDRAWAL AT PRESENT THERE ARE TENS OF THOUSANDS OF FOREIGN COMPANIES INVESTING IN CHINA THERE ARE SEVERAL THOUSAND US COMPANIES INVESTING HERE AMONG SUCH A LARGE NUMBER OF COMPANIES IF ONE OR TWO WANT TO WITHDRAW PLEASE DO HE SAID LEVI STRAUSS'S DECISION CAME JUST AS THE ANNUAL DEBATE IN WASHINGTON OVER EXTENSION OF A PREFERENTIAL TRADING STATUS FOR CHINA HEATS UP THE PRESIDENT HAS TO DECIDE BY EARLY JUNE WHETHER TO EXTEND CHINA'S MOSTFAVORED NATION STATUS MR WU REITERATED CHINA'S OPPOSITION TO CONDITIONAL RENEWAL OF MOSTFAVORED NATION STATUS 9305070175 930507 BUSINESS BRIEF ALLSTATE INCREASES THE MAXIMUM PRICE FOR ITS PUBLIC OFFERING TO 27 A SHARE THE PENDING STOCK OFFERING OF ALLSTATE CORP EXPECTED TO BE THE LARGEST INITIAL PUBLIC OFFERING BY A US COMPANY COULD BE BIGGER THAN ORIGINALLY PLANNED IN A PROSPECTUS FILED RECENTLY WITH THE SECURITIES & EXCHANGE COMMISSION ALLSTATE A UNIT OF CHICAGOBASED SEARS ROEBUCK & CO HAS RAISED THE MAXIMUM OFFERING PRICE FOR ITS STOCK FROM 26 A SHARE TO 27 A SHARE THAT MEANS THE COMPANY BELIEVES IT CAN RAISE AS MUCH AS 212 BILLION OR 785 MILLION MORE THAN ORIGINALLY PLANNED THE ALLSTATE OFFERING IS EXPECTED TO GO TO MARKET IN EARLY JUNE ITS FINAL ROAD SHOW WILL BE IN NEW YORK AND HAS BEEN SCHEDULED FOR JUNE 2 THE PROSPECTUS FOR WOULDBE SHAREHOLDERS ALSO REVEALS THAT ALLSTATE UNDER PRESSURE FROM RATING AGENCIES WILL CONTRIBUTE 300 MILLION MORE TO ITS INSURANCE UNIT THAN ORIGINALLY ANNOUNCED BRINGING TO 125 BILLION THE AMOUNT OF FRESH CAPITAL THE INSURANCE COMPANY WOULD RECEIVE IN ITS RECAPITALIZATION IT'S A SIGN OF GOOD FAITH THAT ALLSTATE TANGIBLY SUPPORTS THE INSURANCE COMPANY SAID ERIC SIMPSON AN ASSISTANT VICE PRESIDENT OF AM BEST CO A RATING AGENCY ALLSTATE DECLINED COMMENT ALLSTATE NEEDS TO RAISE CAPITAL FOLLOWING A 25 BILLION LOSS 165 BILLION AFTER TAXES ON LAST SUMMER'S HURRICANE ANDREW FOLLOWING THE STOCK OFFERING WHICH WILL BE MADE IN CONJUCTION WITH A 600 MILLION DEBT OFFERING THE SURPLUS OF ALLSTATE'S INSURANCE UNIT WILL BE INCREASED TO 602 BILLION FROM 477 BILLION SURPLUS IS AN INSURANCE COMPANY'S CUSHION AGAINST LOSSES ANALYSTS SAY ALLSTATE'S FINANCIAL POSITION IS ALSO ENHANCED BY ITS DECISION TO DECREASE ITS MAXIMUM EXPOSURE TO FUTURE FLORIDA STORMS TO ONLY 1 BILLION TO GET THERE ALLSTATE PLANS TO RAISE RATES BY AS MUCH AS 65 IN SOME PARTS OF FLORIDA AND AN AVERAGE OF 40 OVERALL ACCORDING TO FLORIDA OFFICIALS ALLSTATE ALSO PLANS TO LET 300000 OF ITS 11 BILLION IN FLORIDA PROPERTY INSURANCE POLICIES LAPSE OVER THE NEXT TWO YEARS SEARS WILL RETAIN ABOUT 80 OF ALLSTATE FOLLOWING THE STOCK OFFERING OF THE MORE THAN 2 BILLION BEING RAISED ONLY 350 MILLION WOULD GO TOWARD RECAPITALIZING ALLSTATE THE REST WOULD GO TO RETIRE A SUBSTANTIAL PORTION OF 18 BILLION OF SEARS' SHORTTERM DEBT ASSUMED BY ALLSTATE IN MARCH ACCORDING TO THE PROSPECTUS SEARS PLANS TO REDUCE ITS OVERALL DEBT LOAD BY 3 BILLION AS PART OF A MASSIVE RESTRUCTURING DESIGNED TO REFOCUS THE COMPANY'S ATTENTION ON RETAILING ABOUT 600 MILLION OF THE RECENT DEAN WITTER DISCOVER & CO OFFERING WENT TO REDUCE SEARS DEBT ANALYSTS SAY ALLSTATE'S BIGGEST WORRY IS THAT THE BULL MARKET FOR INSURANCE COMPANY OFFERINGS WILL HAVE CRASHED BY THE TIME IT'S READY TO SELL THE STOCK THE BIGGEST INITIAL PUBLIC OFFERING TO DATE CAME IN 1987 WHEN CONSOLIDATED RAIL CORP RAISED 145 BILLION 9305070174 930507 AMERICAN EXPRESS TO BUY TRAVEL AGENCY IN SCANDINAVIA TO BOOST EUROPEAN ROLE BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS CO MOVED TO BUILD A STRONGER FOOTHOLD IN THE EUROPEAN BUSINESS TRAVEL MARKET BY SIGNING AN AGREEMENT TO ACQUIRE A LEADING BUSINESS TRAVEL AGENCY IN SCANDINAVIA FOR 115 MILLION THE COMPANY IS ALSO ROLLING OUT TWO NEW CARD PRODUCTS INCLUDING ONE FOR SENIOR CITIZENS TO WIN BACK MARKET SHARE IN THE HOTLY COMPETITIVE CREDIT AND CHARGE CARD MARKETS THE TRAVEL COMPANY NYMAN & SCHULTZ AB STOCKHOLM HAD 1992 SALES OF NEARLY 1 BILLION IT EMPLOYS 1680 PEOPLE IN ABOUT 200 OFFICES IT IS A MAJOR STRATEGIC ACQUISITION FOR OUR WORLDWIDE TRAVEL BUSINESS SAID JONATHAN S LINEN PRESIDENT OF TRAVEL RELATED SERVICES THE COMPANY'S FLAGSHIP UNIT AMERICAN EXPRESS HAD TRAVEL AGENCY SALES OF 7 BILLION LAST YEAR AMERICAN EXPRESS IS ALSO LAUNCHING A CHARGE CARD FOR SENIOR CITIZENS WITH A REDUCED ANNUAL FEE AS WELL AS A NEW PROGRAM FOR ITS OPTIMA CREDIT CARD THAT OFFERS HOLDERS FREE GOODS AND SERVICES FOR USING THE CARD ALTHOUGH THE COMPANY IS TRYING TO CUT 1 BILLION IN EXPENSES AND REDUCE STAFF MR LINEN SAID THE MOVES TAKEN TOGETHER ARE PART OF THE OTHER HALF OF THE EQUATION HOW DO WE GROW REVENUES AS THE GLUT OF NEW CREDIT CARDS CONTINUES THE PRODUCTS REFLECT AMERICAN EXPRESS'S ATTEMPTS TO DIFFERENTIATE ITSELF IN A CROWDED MARKET IT ALSO UNDERSCORES THE COMPANY'S NEED TO REGAIN MARKET SHARE AFTER YEARS OF LOSING CARDMEMBERS TO LOW PRICED BANK CREDIT CARDS AND THOSE ISSUED BY INDUSTRIAL CORPORATIONS SUCH AS GENERAL ELECTRIC CO AND GENERAL MOTORS CORP THE SENIOR MEMBER CARD WILL COST 35 ANNUALLY FOR CUSTOMERS 62 OR OLDER COMPARED TO THE 55 FEE FOR THE TRADITIONAL GREEN CARD MEMBERS CAN ALSO RECEIVE REFERRALS TO MEDICAL LEGAL AND PHARMACEUTICAL SERVICES APPROPRIATE TO THEIR NEEDS THE COMPANY HOPES TO CAPTURE THE ELDERLY'S TENDENCY TO SPEND A GREATER SHARE OF THEIR INCOME THE OPTIMA REWARDS PROGRAM FOLLOWS MOVES BY NEW CREDIT CARDS FROM GE AND GM THAT OFFER REBATES ON THEIR PRODUCTS WHEN THE CARD IS USED IT IS SIMILAR TO AMERICAN EXPRESS'S MEMBERSHIP MILES PROGRAM THAT OFFERS FREE AIR TRAVEL FOR THE USE OF THE CARD THE REBATES OFFER A VARIETY OF PRODUCTS FROM STARBUCK'S COFFEE TO A VACATION AT EURODISNEY IT'S A FINETUNING AMEX HAS TO GET THEIR PRODUCTS IN TUNE FOR THE 1990S SAID ROBERT MCKINLEY PRESIDENT OF RAM RESEARCH CORP A CREDIT CARD RESEARCH FIRM IN FREDERICK MD IT SHOULD HELP 9305070173 930507 CITFED EXPECTS 1STQUARTER GAIN DAYTON OHIO CITFED BANCORP INC SAID IT EXPECTS TO REPORT A NONRECURRING GAIN OF ABOUT 1 MILLION OR 24 CENTS A SHARE IN ITS FIRST QUARTER ENDING JUNE 30 BECAUSE OF ADOPTION OF AN ACCOUNTING RULE REQUIRING ACCRUAL OF INCOME TAX LIABILITIES IN LAST YEAR'S FIRST QUARTER THE THRIFT HOLDING COMPANY EARNED 207 MILLION OR 49 CENTS A SHARE 9305070172 930507 BULGARIA IS FAR FROM AN ACCORD ON FOREIGN DEBT ECONOMIC CRISIS PRECLUDES FULL PAYMENT OFFICIAL OF CENTRAL BANK SAYS BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL SOFIA BULGARIA THE GOVERNMENT OF BULGARIA IS STILL FAR AWAY FROM REACHING A RESCHEDULING AGREEMENT ON ITS 125 BILLION FOREIGN DEBT AND ISN'T LIKELY TO EVER PAY OFF THE ENTIRE AMOUNT ACCORDING TO EMIL HARSEV DEPUTY GOVERNOR OF THE BULGARIAN NATIONAL BANK WHEN YOU CONSIDER BULGARIA'S SITUATION OF A STAGNATING ECONOMY AND DECREASING OUTPUT IT'S EASY TO SEE THAT THIS COUNTRY WILL NEVER REPAY THESE DEBTS MR HARSEV SAID IN AN INTERVIEW THAT'S WHY WE NEED A RESCHEDULING AGREEMENT SOON TO MAKE THE DEBT SERVICEABLE IN RELATION TO OUR ECONOMIC POTENTIAL HE CONTINUED BULGARIA IS STRUGGLING TO REGAIN ITS INTERNATIONAL CREDITWORTHINESS AFTER DECLARING A UNILATERAL MORATORIUM IN 1990 ON ALL INTEREST AND PRINCIPAL DEBT REPAYMENTS AT THE TIME THE SOCIALISTLED GOVERNMENT ELECTED AFTER THE FALL OF COMMUNISM FACED A SEVERE LIQUIDITY CRUNCH AS THE COUNTRY'S MONEY RESERVES WERE ALMOST EXHAUSTED TOKEN REPAYMENT IN 1992 WITH A SPURT OF EXPORTLED GROWTH INCREASING RESERVES THE BULGARIAN GOVERNMENT AUTHORIZED A TOKEN REPAYMENT OF 80 MILLION REPRESENTING 20 OF OVERDUE INTEREST THE MOVE WAS SEEN LARGELY AS A GOODWILL GESTURE TO GET TALKS WITH THE LONDON CLUB OF COMMERCIAL BANKS WHICH HOLDS 80 OF THE DEBT MOVING AGAIN ONE YEAR EARLIER BULGARIA REACHED AGREEMENT WITH THE PARIS CLUB WHICH HOLDS ONLY 16 BILLION OF THE DEBT ON A 10YEAR RESCHEDULING PLAN THAT ALLOWED A SIXYEAR GRACE PERIOD ALTHOUGH THE BROAD OUTLINES OF A FRAMEWORK AGREEMENT WITH THE LONDON CLUB IS NOW TAKING SHAPE MR HARSEV SAYS THERE'S A WIDE GAP BETWEEN THE TWO SIDES ON THE EXACT LEVEL OF DEBT REDUCTION AFTER THE LATEST ROUND OF NEGOTIATIONS IN EARLY APRIL THE BULGARIAN NATIONAL BANK CONTINUES TO PUSH FOR A NETVALUE REDUCTION OF 46 TO 48 WHILE THE LONDON CLUB IS PROPOSING RELIEF OF 8 TO 10 THE DEBT BURDEN AND PROTRACTED TALKS ON RESCHEDULING ARE HAMPERING EFFORTS TO RESTRUCTURE THE BULGARIAN ECONOMY BY PREVENTING RAPID EXPANSION OF THE FINANCIAL SECTOR AND PRESENTING A GENERAL PICTURE OF INSTABILITY AND INSOLVENCY ANALYSTS SAY HOWEVER MR HARSEV BELIEVES THE DEBT PROBLEM WHILE SERIOUS SHOULDN'T BE EXAGGERATED EVEN IF WE COULD REPAY ALL OUR DEBTS AT ONCE WHICH IS CLEARLY UNREALISTIC OUR CREDIBILITY WOULDN'T GET MUCH BETTER HE EXPLAINS OUR ECONOMY IS IN SUCH A STATE OF DRAMATIC COLLAPSE THAT NOBODY WILL JUST GIVE US MONEY BECAUSE WE'VE PAID OFF THE DEBT IT WOULDN'T OPEN FINANCIAL MARKETS FOR US TO BORROW OR SUBSTANTIALLY INCREASE FOREIGN DIRECT INVESTMENT MR HARSEV PLAYED DOWN INCREASED SPECULATION THAT BULGARIA MIGHT RENEGE ON ITS DEBT ALTOGETHER AS SOME BULGARIAN POLITICIANS HAVE PROPOSED THIS WOULD POSE A POTENTIAL DISASTER TO ALL OUR EFFORTS HE SAYS MOST OF THE EXTERNAL DEBT WAS ACCUMULATED IN THE LATE 1980S AS THE FALTERING COMMUNIST REGIME TRIED TO PROP UP A MORIBUND ECONOMY AND KEEP THE PEOPLE HAPPY BY FINANCING THE IMPORT OF MUCH SOUGHTAFTER CONSUMER GOODS TOTAL DEBT TRIPLED SINCE 1985 MOST OF IT SHORTTERM AND 95 HELD BY THE BULGARIAN FOREIGN TRADE BANK WHICH USED TO SERVE AS THE PRINCIPAL COMMERCIAL AGENT FOR THE GOVERNMENT SEPARATELY MR HARSEV SAID CONSOLIDATION OF THE DOMESTIC BANKING SECTOR IS TO CONTINUE AS A FIRST STEP TOWARD RESTRUCTURING AND EVENTUAL PRIVATIZATION SO FAR 22 BANKS HAVE BEEN MERGED INTO THE NEW UNITED BULGARIAN BANK AND FOUR MORE SEPARATE UNITS ARE PLANNED AS PART OF AN OVERALL ARRANGEMENT TO SUBSTANTIALLY REDUCE 80 COMMERCIAL BANKS INTO SMALLER MORE COMPETITIVE AND BETTER CAPITALIZED INSTITUTIONS CONSOLIDATION IS ALSO AIMED AT REDUCING THE BANK'S BAD DEBTS WHICH ARE ESTIMATED AT 80 BILLION LEVA 3 BILLION FULLSCALE BANK PRIVATIZATION ISN'T EXPECTED TO GET UNDER WAY UNTIL 1994 9305070171 930507 SALES AT TODAY'S MAN RISE 33 MOORESTOWN NJ MENSWEAR RETAILER TODAY'S MAN INC SAID SALES FOR THE FOUR WEEKS ENDED MAY 1 ROSE 33 TO 128 MILLION FROM 97 MILLION WHILE SAMESTORE SALES ROSE 13 SALES FOR THE THREE MONTHS ROSE 26 TO 311 MILLION FROM 247 MILLION WHILE SAMESTORE SALES ROSE 56 TODAY'S MAN OPERATES 18 MENSWEAR SUPERSTORES IN THREE NORTHEASTERN REGIONAL MARKETS 9305070170 930507 HILO AUTOMOTIVE'S APRIL SALES HOUSTON HILO AUTOMOTIVE INC SAID SAMESTORE SALES DROPPED 49 IN APRIL WHILE TOTAL SALES INCREASED 4 TO 163 MILLION FROM 157 MILLION A YEAR EARLIER THE AUTOMOTIVE PARTS RETAILER SAID SALES AT STORES OPEN AT LEAST A YEAR DECREASED 02 FOR THE FOUR MONTHS ENDED APRIL 30 TOTAL SALES FOR THE PERIOD ROSE 9 TO 615 MILLION FROM 565 MILLION A YEAR EARLIER HILO SAID UNFAVORABLE WEATHER CONDITIONS AND A GENERAL ECONOMIC SLOWDOWN CONTRIBUTED TO THE LOWER SAMESTORE SALES 9305070169 930507 INTERNATIONAL JAPAN VEHICLE SALES FELL 11 IN APRIL DIMMING HOPES FOR A QUICK RECOVERY BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AFTER A HOPEFUL UPTICK IN MARCH CAR AND TRUCK SALES IN JAPAN PLUMMETED 11 IN APRIL DEMONSTRATING THAT THE NATION'S ECONOMIC RECOVERY REMAINS UNCERTAIN SPECIAL FACTORS CONTRIBUTED TO THE DECLINE BUT ECONOMISTS SAY CONSUMPTION ESPECIALLY OF CARS AND OTHER BIGTICKET ITEMS WON'T SHIFT INTO GEAR FOR MONTHS ECONOMISTS CAR ANALYSTS AND AUTO EXECUTIVES CITED THE SAME REASON FOR THE DROP SKITTISH CONSUMERS THE APRIL FIGURES ARE GOING TO FORCE CAR MAKERS TO CHANGE THEIR VIEW OF 1993 SALES WHICH THEY HAD EXPECTED TO RISE BY 3 TO 5 SAID JONATHAN DOBSON AUTO ANALYST AT JARDINE FLEMING SECURITIES LTD HE SAID APRIL'S 17 DROP IN SALES OF LARGER CARS ESPECIALLY BODES ILL FOR JAPANESE AUTO MAKERS COMPANIES HAD COUNTED ON DEMAND FOR THE MORE PROFITABLE VEHICLES TO BUOY THEIR EARNINGS THIS SHOWS THAT PEOPLE WITH WORRIES ABOUT DECLINING BONUSES AND OVERTIME AREN'T WILLING TO SPLASH OUT FOUR MILLION YEN 36000 ON A LUXURY CAR MR DOBSON SAID THE OUTLOOK FOR CAR SALES REMAINS POOR CONCURRED DONALD KIMBALL SENIOR ECONOMIST AT MITSUBISHI BANK YOU CAN'T EXPECT TO SEE A SUSTAINED INCREASE ANY TIME THIS YEAR FOR CARS AND OTHER PRICEY CONSUMER DURABLES HE SAID JAPAN'S ECONOMY HAS BEEN RECOVERING FOR A FEW MONTHS HE SAID BUT A SPENDING BINGE IN 1988 1989 AND 1990 SATED DEMAND FOR EXPENSIVE GOODS MR DOBSON SAID HE EXPECTS JAPANESE VEHICLE SALES INCLUDING MINIVEHICLES TO FALL 37 THIS YEAR TO 67 MILLION CARS AND TRUCKS SALES PEAKED AT 78 MILLION VEHICLES IN 1990 AND HAVE BEEN FALLING STEADILY SINCE THE JAPAN AUTOMOBILE DEALERS ASSOCIATION SAID DOMESTIC SALES OF CARS TRUCKS AND BUSES EXCLUDING MINIVEHICLES FELL 11 TO 398991 VEHICLES IN APRIL FROM 448130 A YEAR AGO THE DROP FOLLOWED A GAIN OF 17 IN MARCH BUT THE APRIL SALES FIGURE ISN'T QUITE AS BAD AS IT LOOKS CAR SALES GOT A ONETIME BOOST IN APRIL 1992 WHEN THE TAX ON SALES OF AUTOS WAS LOWERED WHICH MADE THIS APRIL'S DROP SEEM STEEPER APRIL 1992 ALSO HAD ONE MORE BUSINESS DAY THAN THIS APRIL THE BIGGEST FACTOR WAS HEFTY INCENTIVES OFFERED IN MARCH BY DEALERS AND AUTO MAKERS WHO WANTED TO PAD THEIR SALES BEFORE THE CLOSE OF THE GRIM FISCAL YEAR ENDED MARCH 31 THE BARGAINS SIMPLY ENCOURAGED SHOPPERS TO BUY IN MARCH AND THAT ATE INTO APRIL'S SALES STILL THE SPECIAL FACTORS DON'T EXPLAIN AWAY THE UNDERLYING DOWNWARD TREND IT LOOKS LIKE THE MARKET HASN'T RECOVERED AT ALL SAID SHINICHI TANAKA A SPOKESMAN FOR HONDA MOTOR CO IN APRIL HE ADDED SALES JUST WENT BACK TO NORMAL DEMAND FOR KEY ELECTRONICS GOODS REMAINS SLUGGISH AS WELL THE ELECTRONICS INDUSTRY ASSOCIATION OF JAPAN SAID THURSDAY THAT DOMESTIC SALES OF VIDEOCASSETTE RECORDERS FELL 97 IN MARCH TO 401000 MACHINES SALES OF COLOR TELEVISIONS WERE UNCHANGED AT 815000 SETS 9305070168 930507 LESLIE FAY NAMES ARTHUR ANDERSEN ITS NEW AUDITOR BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LESLIE FAY COS APPOINTED ARTHUR ANDERSEN & CO AS ITS INDEPENDENT AUDITOR AFTER BDO SEIDMAN ENDED ITS 15YEAR RELATIONSHIP AS AUDITOR TO THE TROUBLED APPAREL MAKER BDO SAID IT ENDED THE RELATIONSHIP AFTER OFFICIALS AT THE SECURITIES & EXCHANGE COMMISSION INFORMED THE FIRM THAT IT WASN'T CONSIDERED TO BE AN INDEPENDENT AUDITOR UNDER SEC REGULATIONS BDO SAID THE SEC CITED ITS OWN INVESTIGATION OF THE COMPANY AND PENDING SHAREHOLDER LAWSUITS AGAINST LESLIE FAY IN WHICH BDO SEIDMAN IS NAMED AS A CODEFENDANT OFFICIALS AT THE SEC DECLINED TO COMMENT ON THE MATTER ON APRIL 2 BDO SEIDMAN SAID THAT IT HAD MADE AN INFORMAL CALL TO THE SEC WHICH HAS BEEN INVESTIGATING LESLIE FAY SINCE FEBRUARY WITH RESPECT TO ACCOUNTING IRREGULARITIES THAT HAVE FORCED LESLIE FAY TO RESTATE ITS 1992 AND 1991 RESULTS ON APRIL 5 LESLIE FAY FILED FOR CHAPTER 11 PROTECTION UNDER THE FEDERAL BANKRUPTCY CODE BDO SEIDMAN WHICH IN MARCH HAD WITHDRAWN ITS OPINION ON LESLIE FAY'S 1991 FINANCIAL STATEMENTS AND WAS IN THE MIDST OF PREPARING REVISED RESULTS FOR THE COMPANY SAID THAT IT APPROACHED THE SEC WHEN WE THOUGHT OUR ROLE AS AN INDEPENDENT AUDITOR MIGHT COME INTO QUESTION A BDO SEIDMAN SPOKESMAN SAID WE HAD BEEN TOTALLY ABOVE BOARD BUT IT BECAME OBVIOUS TO US THAT A NUMBER OF PEOPLE AT LESLIE FAY HAD MISLED US AND THAT THERE HAD BEEN A PERVASIVE FRAUD IN A JOINT STATEMENT ISSUED YESTERDAY BY BDO SEIDMAN AND LESLIE FAY THE FIRMS SAID THE SEC'S POSITION ON BDO SEIDMAN WHICH WAS RELAYED TO THE FIRM APRIL 13 LEFT THE PARTIES WITH NO CHOICE BUT TO TERMINATE THEIR RELATIONSHIP SO THAT LESLIE FAY CAN CONCLUDE ITS 1991 AND 1992 AUDITS AS QUICKLY AS POSSIBLE LESLIE FAY SAID THAT BDO SEIDMAN'S AUDITORS HAVE TURNED OVER THEIR PAPERWORK TO ARTHUR ANDERSEN WHICH IS EXPECTED TO COMPLETE THE COMPANY'S AUDIT SOMETIME IN JULY ACCORDING TO JOHN S DUBEL LESLIE FAY'S CHIEF FINANCIAL OFFICER AS REPORTED EARLIER LESLIE FAY HAS BEEN SHAKEN BY AN INTERNAL ACCOUNTING SCANDAL THAT CAME TO LIGHT IN JANUARY DURING THE COMPANY'S YEAREND AUDIT SINCE THEN LESLIE FAY'S CONTROLLER AND ITS CHIEF FINANCIAL OFFICER HAVE BEEN REPLACED AND THE COMPANY HAS HIRED THE NEW YORK LAW FIRM OF WEIL GOTSCHAL & MANGES AND ARTHUR ANDERSEN TO CONDUCT AN INVESTIGATION 9305070167 930507 INTERNATIONAL JAPANESE VCR EXPORTS DECLINE TOKYO JAPANESE EXPORTS OF VIDEOCASSETTE RECORDERS IN MARCH FELL 72 FROM A YEAR EARLIER TO 168 MILLION UNITS THE ELECTRONICS INDUSTRY ASSOCIATION OF JAPAN REPORTED THE ASSOCIATION REPORTED THAT IMPORTS OF VCRS CLIMBED 36 FROM A YEAR EARLIER TO 54000 UNITS IN MARCH MARCH'S DROP IN VCR EXPORTS MARKS THE 25TH CONSECUTIVE MONTH OF YEARONYEAR DECLINE COLOR TELEVISION EXPORTS WERE DOWN FOR A THIRD STRAIGHT MONTH THE ASSOCIATION NOTED THAT WHILE VCR SHIPMENTS TO KEY MARKETS SUCH AS THE US AND THE EC FELL THOSE TO DEVELOPING ASIAN NATIONS CONTINUED TO LOG STRONG GAINS 9305070166 930507 KAISER STEEL PLANS NAME CHANGE RANCHO CUCAMONGA CALIF KAISER STEEL RESOURCES INC SAID IT WILL ASK SHAREHOLDERS TO APPROVE A CHANGE IN THE COMPANY'S NAME TO KAISER RESOURCES INC THE PROPOSED NEW NAME MORE ACCURATELY REFLECTS THE COMPANY'S OPERATIONS AND FUTURE DIRECTION KAISER SAID KAISER IS NO LONGER IN THE STEEL BUSINESS SO USING STEEL IN OUR NAME CAN CAUSE CONFUSION IT ADDED KAISER IS THE SUCCESSOR TO THE FORMER KAISER STEEL CORP SINCE ITS 1988 REORGANIZATION KAISER HAS BEEN DEVELOPING ASSETS OF ITS PREDECESSOR IN THE AREAS OF SOLID WASTE MANAGEMENT WATER RESOURCES AND LAND DEVELOPMENT THE VOTE IS PLANNED FOR THE ANNUAL SHAREHOLDER MEETING JUNE 14 9305070165 930507 LEISURE & ARTS BOOKSHELF ARE WE HEADED FOR THE DEVIL BY JOHN CARDINAL O'CONNOR OS GUINNESS IN HIS BOOK THE AMERICAN HOUR FREE PRESS 458 PAGES 2495 TURNS A PHRASE WITH ENVIABLE ADROITNESS HIS BOOK IS LACED WITH PUNGENT APHORISMS THAT RARELY BECOME CLICHES NOWHERE IS AMERICA MORE INVENTIVE THAN IN DISCOVERING NEW WAYS TO DESTROY FAMILIES HE WRITES AND INSTEAD OF THEIR VALUABLE TASK OF ILLUMINATING NORMS AND SUPPORTING THE NORMAL BORDERLINE CASES ARE OFTEN USED TO DERIDE THE NORMAL AND DISMISS THE NOTION OF NORMS ALTOGETHER WITHOUT A STRONG FRAMEWORK A HOST OF HARD CASES BREEDS ONE SOFT CULTURE THE ENTIRE TEXT IS WORTH CAREFUL STUDY BUT FOR THOSE IN A HURRY HIS APHORISMS PROVIDE SHORTCUTS TO COMPLEX ANALYSES OF AMERICAN CULTURE MR GUINNESS CLEARLY BELIEVES THAT AMERICA IS GOING TO HELL IN A HANDBASKET ALTHOUGH AS A BRITISHER LIVING AMONG US AND AN OXONIAN DOCTOR OF PHILOSOPHY HE SEEMS TOO POLITE TO SAY SO BLUNTLY HE MODESTLY CALLS HIS WORK A WHISPER IN THE EAR A REFERENCE TO THE STORY OF THE ROMAN SLAVE WHO WHISPERED IN THE EAR OF A VICTORIOUS COMMANDER IN CHIEF THIS TOO SHALL PASS AWAY WE ARE THUS REMINDED THAT A CRISIS OF CULTURAL AUTHORITY GRAVELY THREATENS THE VITALITY IF NOT THE SURVIVAL OF AMERICAN DEMOCRACY ITSELF THIS IS NOT ANOTHER DOOMSDAY BOOK HOWEVER WE MAY BE GOING TO HELL BUT WE'RE NOT THERE YET AND OUR COURSE MR GUINNESS WOULD SAY IS REVERSIBLE BUT THE GODGIVEN MOMENT OF DESTINY THE TIME TO REVERSE GEARS THE AMERICAN HOUR IS NOW THE DAY AFTER TOMORROW IS TOO LATE TO BE OF ANY USE HE WARNS WE ARE DISTANCING OURSELVES RAPIDLY FROM OUR MORAL SPIRITUAL AND RELIGIOUS TRADITIONS AND THUS HEADING FOR NATIONAL SUICIDE TO SUCH EFFECT MR GUINNESS QUOTES JOHN ADAMS WE HAVE NO GOVERNMENT ARMED WITH POWER CAPABLE OF CONTENDING WITH HUMAN PASSIONS UNBRIDLED BY MORALITY AND RELIGION OUR CONSTITUTION WAS MADE ONLY FOR A MORAL AND RELIGIOUS PEOPLE IT IS WHOLLY INADEQUATE TO THE GOVERNMENT OF ANY OTHER THE AUTHOR OFFERS VARIOUS PROPOSALS FOR PRESERVING AND REVITALIZING AMERICANISM I FIND TWO OF THESE PARTICULARLY INTRIGUING IF EXCEEDINGLY DIFFICULT FIRST IS THE PROPOSAL TO REFORGE THE PUBLIC PHILOSOPHY THROUGH THE RENEWAL OF A CONCEPT THAT IS AT THE HEART OF AMERICAN DEMOCRACY AND THE AMERICAN CONSTITUTIONAL TRADITION COVENANTALISM MR GUINNESS CALLS THE CONCEPT OF CONSTITUTIONAL TRADITIONAL COVENANTALISM ONE OF THE FRESHEST AND MOST IMPORTANT FINDINGS OF RECENT SCHOLARSHIP RECENT IS OF COURSE A RELATIVE TERM ACTUALLY WHILE AT GEORGETOWN UNIVERSITY IN THE LATE 1960S I WAS FASCINATED BY THE WORK OF POLITICAL SCIENTISTS WILLMOORE KENDALL AND GEORGE W CAREY ON THE SYMBOLS OF THE AMERICAN TRADITION THESE AUTHORS REMINDED POLITICAL HISTORIANS OF THE GRAVE DISSERVICE TO OUR TRADITIONS RAMPANTLY PERPETRATED BY THOSE WHO DATE OUR POLITICAL LIFE FROM EITHER THE DECLARATION OF INDEPENDENCE THE CONSTITUTION THE FEDERALIST OR THE BILL OF RIGHTS SEVERAL COVENANTS WERE VITAL TO OUR POLITICAL ORIGINS BEFORE ANY OF THESE DOCUMENTS WERE BORN FOR EXAMPLE THE MAYFLOWER COMPACT THE GENERAL ORDERS OF CONNECTICUT THE BODY OF LIBERTIES OF MASSACHUSETTS BAY AND THE VIRGINIA DECLARATION OF RIGHTS THESE DOCUMENTS INTRODUCE US TO THE KIND OF PEOPLE WE STARTED OUT TO BE PEOPLE WITH NOTIONS OF INDIVIDUAL RIGHTS THE GENERAL GOOD UNANIMOUS CONSENT LIBERTIES IMMUNITIES AND PRIVILEGES RELATED TO HUMANITY CIVILITY AND CHRISTIANITY AND FREEDOMS DUE TO EVERY MAN IN HIS PLACE AND PROPORTION THE LATTER PHRASE CRUCIAL SUCH FUNDAMENTAL NOTIONS MEANT SOMETHING FAR DIFFERENT FROM WHAT WE MEAN TODAY BY INDIVIDUAL RIGHTS NOW CONSIDERED THE VERY ESSENCE OF THE AMERICAN POLITICAL TRADITION WITH ANY SUGGESTION OF SUBORDINATING INDIVIDUAL RIGHTS TO THE COMMON GOOD CONSIDERED REPREHENSIBLE THE MOST CRITICAL CONCEPT PERVADING ALL THE COVENANTS HOWEVER IS THAT OF A VIRTUOUS PEOPLE EXPECTED TO LIVE BY THE CANONS OF HUMANITY CIVILITY AND CHRISTIANITY SELFGOVERNMENT WITHOUT A VIRTUOUS PEOPLE IS IMPOSSIBLE I SEE SUCH MODELS AND THE ENTIRE CONCEPT OF A RENEWED NATIONAL COMPACT OR COVENANT AS HAVING A CERTAIN APPEAL BUT LEAVING OPEN A LOT OF QUESTIONS WHO CREATES SUCH A COMPACTSOME REFOUNDING FATHERS WHAT WOULD THEY REPRESENT IF NOT OUR CURRENT CULTURE OF WHICH MANY WOULD BE PRODUCTS WHAT AUTHORITY WOULD THEY HAVE TO FORGE A MUTUAL AGREEMENT ON THE ROLE OF RELIGION OR ON THE MANAGEMENT OF RELIGIOUS DIFFERENCES IN OTHER WORDS EVEN IF DESIRABLE HOW WOULD WE GET THERE FROM HERE THE SECOND PROPOSAL EMERGING FROM MR GUINNESS'S TEXT IS THAT WE MUST RESTORE AND REINFORCE THOSE CRITICAL MEDIATING AGENCIES IN SOCIETY THAT HAVE BEEN ABOLISHED OR ERODED IN PART BY GOVERNMENTAL ACTION IN ANALYZING WHAT HE CALLS A CRISIS OF MORAL AUTHORITY MR GUINNESS QUOTES FROM THE WILLIAMSBURG CHARTER LETHAL TO FREEDOM AND THE CHIEF MENACE TO RELIGIOUS LIBERTY TODAY IS THE EXPANDING POWER OF GOVERNMENT CONTROL OVER PERSONAL BEHAVIOR AND THE INSTITUTIONS OF SOCIETY WHEN THE GOVERNMENT ACTS NOT SO MUCH IN DELIBERATE HOSTILITY TO BUT IN RECKLESS DISREGARD OF COMMUNAL BELIEF AND PERSONAL CONSCIENCE IN MY OWN REVIEW OF STUDIES MARKING THE 200TH ANNIVERSARY OF THE FRENCH REVOLUTION I WAS STRUCK BY THE POSTULATE THAT THE DECLARATION OF THE RIGHTS OF MAN WAS AN EFFORT TO DESTROY OR CONTROL ALL MEDIATING AGENCIES THAT STOOD BETWEEN THE INDIVIDUAL AND THE GOVERNMENT THE LIE WAS THAT THE INDIVIDUAL WOULD THUS BE FREE OF THE MIDDLE MAN ABLE TO NEGOTIATE AS AN EQUAL DIRECTLY WITH THE GOVERNMENT THE REALITY WAS THAT THE INDIVIDUAL WAS LEFT HOPELESSLY VULNERABLE IN A ONESIDED GOVERNMENTAL ATTACK ON HIS RIGHTS UNPROTECTED BY SUCH MEDIATING AGENCIES AS FAMILY CHURCH SCHOOL OR A TRANSCENDENT MORAL CODE NAPOLEON BONAPARTE WAS A LOGICAL OUTCOME WHEN IT SUITED HIM TO TURN THE MAGNIFICENT CATHEDRAL OF NOTRE DAME IN PARIS INTO A STABLE FOR HIS HORSES HE HAD THE CONSTITUTIONAL RIGHT TO DO SO WHEN HE WANTED APPROPRIATE POMP FOR HIS ROYAL MARRIAGE HE SIMPLY RESTORED THE CATHEDRAL'S GRANDEUR WHILE NOT SUGGESTING ANYTHING NAPOLEONIC ABOUT THE GOVERNMENT OF NEW YORK CITY I WOULD SAY THAT THERE ARE LOCAL MANIFESTATIONS OF GOVERNMENT UNDERMINING MEDIATING AGENCIES THE EFFORT TO FORCE THE RAINBOW CURRICULUM ON THE PUBLIC SCHOOLS FOR EXAMPLE WAS PERCEIVED WIDELY AS AN ATTACK ON TRADITIONAL CONCEPTS OF FAMILY MUCH THE SAME COULD BE SAID OF CONGRESSIONAL EFFORTS TO PUSH THROUGH A FREEDOM OF CHOICE ACT THAT WOULD PROHIBIT ANY STATESPONSORED REQUIREMENT FOR PARENTAL NOTIFICATION OR PARENTAL PERMISSION BEFORE A MINOR COULD HAVE AN ABORTION THE AUTHORITY OF THE FAMILY THE MOST CRITICAL MEDIATING AGENT IN SOCIETY WOULD BE PUSHED ASIDE COMPLETELY BY THE FEDERAL GOVERNMENT AS IT IS ALREADY PUSHED ASIDE BY VARIOUS STATE GOVERNMENTS MR GUINNESS WRAPS IT UP NICELY HUMAN RIGHTS HAVE BECOME A GRAND GAME OF 'LET'S PRETEND' WITHOUT A BELIEF IN THE DIGNITY AND DISTINCTIVENESS OF HUMAN NATURE ALL THAT IS LEFT IS SPECIOUS CHAUVINISM IF GOD IS DEAD WE MUST FACE THE FACT THAT NATURE IS MORALLY INDIFFERENT RATIONALITY IS ONLY A TOOL OF POWER AND HUMAN RIGHTS ARE A FICTION CARDINAL O'CONNOR IS ARCHBISHOP OF NEW YORK 9305070164 930507 OWENSCORNING TO RESTRUCTURE EUROPEAN UNIT PLAN AIMS TO STREAMLINE PRODUCTION LAUNCH CLIENTSERVICE CENTER BY BELINDA HOPKINSON SPECIAL TO THE WALL STREET JOURNAL BRUSSELS OWENSCORNING FIBERGLAS CORP ANNOUNCED SWEEPING PLANS TO RESTRUCTURE ITS EUROPEAN OPERATIONS IN AN EFFORT TO STREAMLINE PRODUCTION THE PLAN INCLUDES CLOSING THE COMPANY'S FALKENBURG SWEDEN MANUFACTURING PLANT IN 1994 WHICH WOULD RESULT IN THE LOSS OF 300 JOBS AN ADDITIONAL 200 JOBS WILL VANISH EUROPEWIDE IN MANUFACTURING SALES AND ADMINISTRATION THE COMPANY ALSO AIMS TO CENTRALIZE ADMINISTRATION AND TO LAUNCH A CENTRAL CUSTOMER SERVICE CENTER TO BE LOCATED IN BRUSSELS ABOUT 100 NEW JOBS WILL BE CREATED FOR WHICH THE COMPANY INTENDS TO TRANSFER SOME EMPLOYEES AT THE SAME TIME THE COMPANY HOPES TO INCREASE PRODUCTION CAPACITY IN ITS EXISTING PLANTS BY 25 IT SAID IT PLANS TO INVEST 110 MILLION INTO THE EUROPEAN FACILITIES OVER THE NEXT THREE YEARS THIS IS THE MOST FAR REACHING AND FUNDAMENTAL REVITALIZATION PLAN IN OUR HISTORY SAID GREGOIRE AMORY EUROPEAN OPERATIONS VICE PRESIDENT THE BUILDINGPRODUCTS COMPANY IN TOLEDO OHIO TOOK A ONETIME CHARGE OF 23 MILLION IN ITS RECENTLY RELEASED FIRSTQUARTER EARNINGS REPORT FOR RESTRUCTURING THE EUROPEAN INDUSTRIAL MATERIALS GROUP TO MAKE ITS PLANTS MORE EFFICIENT THE COMPANY WILL IMPLEMENT STATEOFTHEART MANUFACTURING TECHNOLOGIES WHICH SHOULD TRANSLATE INTO A COST SAVINGS OF 85 MILLION FROM 1994 TO 1996 AND 40 MILLION EACH YEAR THEREAFTER SAID MR AMORY TO BOOST EUROPEAN OPERATIONS' COMPETITIVITY PRODUCTION WILL BE INTENSIFIED IN EACH PLANT SAID A COMPANY SPOKESWOMAN EACH PLANT WILL BEGIN MAKING NO MORE THAN FOUR PRODUCTS INSTEAD OF UP TO 15 FLUCTUATING ECONOMIC CONDITIONS IN EUROPE AND THE WEAKNESS OF THE DOLLAR ARE AT THE ROOT OF THE RESTRUCTURING THE COMPANY SAID THE WORLD ECONOMY AS WE KNEW IT DURING OUR MAJOR EUROPEAN FINANICAL SUCCESS IN 1989 HAS CHANGED SAID CHARLES DANA PRESIDENT OF OWENSCORNING'S INDUSTRIAL MATERIALS GROUP IN CERTAIN MAJOR MARKETS IN EUROPE WE ARE SELLING AT 1982 PRICES OWENSCORNING OPERATES SIX REINFORCEMENT AND TEXTILES PLANTS IN SWEDEN BELGIUM FRANCE SPAIN NORWAY AND ENGLAND AND HAS EIGHT SALES OFFICES ACROSS THE CONTINENT THE EUROPEAN INDUSTRIAL MATERIALS GROUP HAD SALES OF 500 MILLION IN 1992 COMPARED WITH 521 MILLION IN 1991 INDUSTRIAL MATERIALS GROUP SALES WORLDWIDE WERE 979 MILLION IN 1992 INCLUDING ITS CONSTRUCTION PRODUCTS GROUP SALES OWENSCORNING HAS ANNUAL SALES OF MORE THAN 3 BILLION IN ITS RECENT FIRSTQUARTER EARNINGS REPORT NET INCOME JUMPED TO 17 MILLION FROM 6 MILLION A YEAR EARLIER IN ADDITION TO THE RESTRUCTURING CHARGE THE RESULTS INCLUDED A 26 MILLION CREDIT FOR ADOPTING NEW ACCOUNTING STANDARDS 9305070162 930507 GANTOS INC SALES DECLINE 10 GRAND RAPIDS MICH GANTOS INC REPORTED SALES OF 216 MILLION FOR THE FOURWEEK PERIOD ENDED MAY 1 DOWN 10 FROM THE SAME PERIOD A YEAR AGO SAMESTORE SALES DECREASED 10 SALES FOR THE FISCAL FIRST QUARTER ENDED MAY 1 WERE 592 MILLION DOWN 5 FROM THE YEARAGO QUARTER SAMESTORE SALES DECREASED 5 GANTOS INC IS A RETAILER OF WOMEN'S CLOTHING WITH 157 STORES IN 25 STATES 9305070161 930507 WHO'S NEWS PAINEWEBBER PICKS THEODORE LEVINE AS GENERAL COUNSEL BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PAINEWEBBER GROUP INC HAS NAMED THEODORE A LEVINE A SECURITIES LAWYER AS ITS GENERAL COUNSEL MR LEVINE WHOSE APPOINTMENT IS EXPECTED TO BE ANNOUNCED TODAY SUCCEEDS JAMES TREADWAY MR TREADWAY WHO BECAME PAINEWEBBER'S GENERAL COUNSEL IN 1987 RECENTLY WAS NAMED TO HEAD PAINEWEBBER'S MERCHANT BANKING UNIT MR LEVINE 48 YEARS OLD HAS BEEN A PARTNER AT THE WASHINGTONBASED LAW FIRM OF WILMER CUTLER & PICKERING FOR THE LAST NINE YEARS THERE HE HAS REPRESENTED IVAN BOESKY THE FORMER ARBITRAGEUR WHOSE 1986 ADMISSION OF SECURITIESLAW VIOLATIONS LED TO THE GOVERNMENT'S WIDESPREAD INSIDER TRADING INVESTIGATION ON WALL STREET MR LEVINE ALSO HAS REPRESENTED FORMER SALOMON INC VICE CHAIRMAN JOHN MERIWETHER IN CONNECTION WITH THE GOVERNMENT INVESTIGATION OF THE SALOMON TREASURYAUCTION BOND SCANDAL HE HAS COUNSELED VIRTUALLY EVERY SECURITIES FIRM ON WALL STREET ABOUT INSIDER TRADING LAWS AND OTHER MATTERS MR LEVINE HAD PREVIOUSLY BEEN ASSOCIATE DIRECTOR OF ENFORCEMENT OF THE SECURITIES AND EXCHANGE COMMISSION UNFORTUNATELY WE FELT ONE OF THE GROWTH INDUSTRIES IN THIS COUNTRY IS THE LEGAL PROFESSION SAID DONALD B MARRON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PAINEWEBBER WE CLEARLY WANTED TO MAKE SURE WE HAVE THE BEST MANAGEMENT CONTROLS IN THE INDUSTRY HE SAID EXPLAINING MR LEVINE'S APPOINTMENT PAINEWEBBER HAS HAD RELATIVELY FEW LEGAL PROBLEMS COMPARED WITH OTHER WALL STREET FIRMS HOWEVER IN MARCH THE SEC SUED TWO FORMER AND ONE CURRENT PAINEWEBBER BROKER IN A CONTINUING INQUIRY INTO ALLEGED MISCONDUCT AT SOME OF THE COMPANY'S BROKERAGE BRANCHES AND IN FEBRUARY PAINEWEBBER AGREED TO A SETTLEMENT WITH THE SEC THAT BANNED FOUR OF ITS BRANCH OFFICES FROM OPENING ANY NEW ACCOUNTS FOR A MONTH MR LEVINE ALSO WILL SERVE AS EXECUTIVE VICE PRESIDENT OF PAINEWEBBER INC THE FIRM'S BROKERDEALER UNIT MR LEVINE SAID THAT AFTER WORKING AS OUTSIDE COUNSEL TO SECURITIES FIRMS HE LOOKS FORWARD TO THE CHALLENGE OF WORKING ON THE INSIDE 9305070160 930507 WHO'S NEWS WESTINGHOUSE ELECTRIC CORP WESTINGHOUSE ELECTRIC CORP PITTSBURGH DAN MASON 42 YEARS OLD WAS NAMED PRESIDENT OF GROUP W RADIO A UNIT OF THE COMPANY'S WESTINGHOUSE BROADCASTING CO SUBSIDIARY MR MASON WHOSE APPOINTMENT IS EFFECTIVE JUNE 1 SUCCEEDS JIM THOMPSON WHO RESIGNED IN APRIL GROUP W SAID MR MASON PREVIOUSLY WAS PRESIDENT OF COOK INLET RADIO PARTNERS AN OWNER AND OPERATOR OF RADIO STATIONS 9305070158 930507 ENERGY AGENCY FORECASTS RISE IN OIL DEMAND IEA DATA MAY PROVOKE MORE OPEC INFIGHTING OVER OUTPUT ALLOCATIONS BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA DATA COMPILED BY THE INTERNATIONAL ENERGY AGENCY INDICATE THE WORLD WILL NEED ABOUT ONE MILLION BARRELS A DAY MORE OIL THIS YEAR FROM OPEC MEMBERS WITH MUCH OF THIS INCREASE IN APPETITE EMERGING ONLY IN THE FOURTH QUARTER THIS MAY EXACERBATE WRANGLING AMONG MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES OVER A DIVISION OF THE SPOILS WELL BEFORE THEN AT A MEETING SCHEDULED FOR JUNE 8 IN VIENNA SOME OPEC MEMBERS MAY SEE RISING DEMAND OFFERING AN OPPORTUNITY FOR HIGHER PRICES BUT KUWAIT FOR ONE IS EAGER TO USE MORE OF ITS SURGING PRODUCTION CAPACITY AS EARLY AS THE THIRD QUARTER KUWAIT IS ALREADY CHAFING UNDER OPEC PRODUCTION RESTRAINTS IT RELUCTANTLY ACCEPTED FOR THE CURRENT QUARTER KUWAITI OIL MINISTER ALI AHMED ALBAGHLI HAS CONTINUED TO REMIND OTHERS IN OPEC OF THEIR PROMISE TO PROVIDE HIS COUNTRY A BIGGER RELATIVE SHARE FROM JULY ONWARDS MR ALBAGHLI SEEMS TO HAVE IN MIND A SUBSTANTIAL INCREASE BUT THE IEA DATA SUGGEST DEMAND FOR OPEC OIL IN THE THIRD QUARTER MAY BE ONLY SLIGHTLY MORE THAN CURRENT PRODUCTION LEVELS UNLESS THE INDUSTRY ADDS TO ITS STOCKS AND WILL RISE SHARPLY IN THE FOURTH QUARTER FOR KUWAIT TO BE SATISFIED AS EARLY AS THE THIRD QUARTER OTHERS IN OPEC WOULD HAVE TO RESTRAIN THEIR OIL PRODUCTION OR SEE PRICES DECLINE AND EVEN MR ALBAGHLI BALKS AT LOWER PRICES KUWAIT WILL HAVE TO SETTLE FOR LESS THAN THE 400000 BARRELADAY INCREASE IT WANTS IN ITS OPEC OUTPUT ALLOCATION SAYS MEHDI VARZI DIRECTOR OF ENERGY RESEARCH AT LONDON BROKERAGE FIRM KLEINWORT BENSON SECURITIES MR VARZI WHO FOLLOWS OPEC DEVELOPMENTS AND WHOSE OWN DEMAND AND SUPPLY PROJECTIONS ARE CLOSE TO THE IEA'S SAYS IT IS UP TO OPEC TO EITHER CONTINUE TO PROVIDE MORE OIL OR PUT A GENTLE SQUEEZE ON SUPPLIES TO NUDGE PRICES HIGHER IN ANY CASE HE SEES OPEC BEING VERY CAUTIOUS ABOUT THE WAY IT LOOKS AT DEMAND PROJECTIONS FOR THE THIRD QUARTER WITHIN OPEC JOSTLING FOR MARKET SHARE IS USUALLY INTENSE THIS IS MORE SO NOW BECAUSE THESE SHARES MAY BE THE BASIS FOR ANY PRODUCTION CUTBACKS NECESSITATED BY THE EVENTUAL REENTRY OF IRAQ CURRENTLY BANNED BY THE UNITED NATIONS FROM EXPORTING OIL TO THE WORLD MARKET MEANWHILE THE EXPORTERS WOULD LIKE TO SEE PRICES FIRM TOWARD THEIR TARGET OF 21 A BARREL AS MEASURED BY A BASKET OF SEVEN CRUDE OILS BUT NOT AT THE COST OF THEIR SHARE OF THE PIE THE VALUE OF THIS OPEC BASKET WAS 1834 ON WEDNESDAY THE IEA'S MONTHLY OIL MARKET REPORT DOESN'T FORECAST PRICE MOVEMENTS IT ALSO DOESN'T PROJECT DEMAND FOR OPEC OIL MAINLY BECAUSE OF UNCERTAINTY ABOUT CHANGES IN THE POSITION OF STOCKS HELD BY THE INDUSTRY AND SOME GOVERNMENTS HOWEVER THE AGENCY FORECASTS DEMAND FOR PETROLEUM AND SUPPLY FROM SOURCES OTHER THAN OPEC THIS GIVES AN INDICATION OF HOW MUCH PETROLEUM MAY BE NEEDED FROM THE EXPORTERS GROUP SUBJECT TO STOCK CHANGES THE ENERGY AGENCY'S DATA SHOW OIL DEMAND IN MEMBER COUNTRIES OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT RISING TO 391 MILLION BARRELS A DAY THIS YEAR FROM 387 MILLION BARRELS A DAY IN 1992 ALL OF THIS 400000 BARRELADAY INCREASE IS EXPECTED TO ARISE IN NORTH AMERICA WITH DEMAND IN EUROPEAN AND PACIFIC OECD MEMBERS CONTINUING AT UNCHANGED LEVELS IN THE REST OF THE WORLD 1993 OIL DEMAND ALSO IS PROJECTED TO REMAIN UNCHANGED AT 284 MILLION BARRELS A DAY A SHARP DECLINE IN RUSSIA AND OTHER REPUBLICS THAT ONCE FORMED THE SOVIET UNION IS EXPECTED TO BE OFFSET BY INCREASED NEEDS IN ASIA LATIN AMERICA AND THE MIDDLE EAST ON THE SUPPLY SIDE A SHARP DROP IN THE OUTPUT OF RUSSIA AND OTHER REPUBLICS IS SEEN LOWERING THE AMOUNT OF OIL PRODUCED IN COUNTRIES THAT AREN'T MEMBERS OF OPEC TO 402 MILLION BARRELS A DAY IN 1993 FROM 408 MILLION BARRELS A DAY LAST YEAR SUBJECT TO CHANGES IN STOCKS HELD BY GOVERNMENTS AND OIL COMPANIES THE DATA THUS IMPLY THAT DEMAND FOR OPEC OIL WILL BE ABOUT 251 MILLION BARRELS A DAY THIS YEAR UP FROM 241 MILLION BARRELS A DAY IN 1992 THE IEA SAID OPEC OUTPUT IN THE FIRST QUARTER TOTALED 25 MILLION BARRELS A DAY OUTPUT IN APRIL DECLINED TO 2410 MILLION BARRELS A DAY FROM 2436 MILLION BARRELS A DAY IN MARCH FOLLOWING AN OPEC AGREEMENT IN FEBRUARY TO TRIM PRODUCTION AND SHORE UP PRICES THE DATA IMPLY THAT OPEC WILL NEED TO PROVIDE 239 MILLION BARRELS OF OIL A DAY IN THE SECOND QUARTER 242 MILLION BARRELS A DAY IN THE THIRD QUARTER AND 264 MILLION BARRELS A DAY IN THE FOURTH QUARTER WITH FINAL FIGURES AFFECTED BY ANY INCREASE OR DECREASE IN STOCKS MR VARZI AT KLEINWORT BENSON SAYS THE OIL INDUSTRY THESE DAYS IS INCLINED TOWARD LEAN OPERATIONS WITH LOW STOCKS USING A DRAWDOWN OF 200000 BARRELS A DAY FROM STOCKS AS AVERAGE FOR THE YEAR HE ESTIMATES THAT DEMAND FOR OPEC OIL WILL BE 800000 BARRELS A DAY HIGHER THIS YEAR THAN IN 1992 IN THE FOURTH QUARTER ALONE HE ESTIMATES THE WORLD WILL NEED 257 MILLION BARRELS A DAY OF OPEC OIL EVEN AFTER ASSUMING THAT THE INDUSTRY WILL USE 600000 TO 700000 BARRELS A DAY OF OIL FROM ACCUMULATED STOCKS IN THAT PERIOD THE WORST PERIOD FOR OPEC IN TERMS OF DEMAND IS OVER HE SAYS MEANWHILE THE IEA PROJECTED OIL SUPPLIED BY RUSSIA AND OTHER FORMER SOVIET REPUBLICS WILL FALL TO EIGHT MILLION BARRELS A DAY IN 1993 FROM NINE MILLION BARRELS A DAY A YEAR EARLIER AT THE SAME TIME DEMAND IN THIS AREA WILL FALL TO SIX MILLION BARRELS A DAY FROM 69 MILLION BARRELS A DAY IT NOTED THAT EXPORTS FROM THIS REGION HAD BEEN STABLE AT 19 MILLION BARRELS A DAY DURING THE FIRST QUARTER MEANWHILE THE MONTHLY DATA SHOWED THAT RUSSIA'S OUTPUT DOWNTURN WAS SLOWING SINCE LAST DECEMBER THOUGH COMPARISONS WITH A YEAR EARLIER SHOWED SHARP FALLS RUSSIA'S FIRSTQUARTER OUTPUT AT 72 MILLION BARRELS A DAY WAS DOWN MORE THAN 14 FROM 84 MILLION BARRELS A DAY A YEAR EARLIER BUT FELL ONLY 27 FROM 74 MILLION BARRELS IN THE FOURTH QUARTER OF 1992 9305070157 930507 WORKPLACE RANKS OF UNEMPLOYED COUPLES MULTIPLY DEVASTATING DOUBLEINCOME HOUSEHOLDS BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL DIANE SMITH ALREADY WAS SOBBING WHEN A SUPERVISOR TOLD HER THAT SHE WOULD LOSE HER JOB THIS MONTH AS AN ADMINISTRATIVE ANALYST FOR INTERNATIONAL BUSINESS MACHINES CORP IN EAST FISHKILL NY FIVE MINUTES EARLIER HER HUSBAND GEORGE SMITH HAD GOTTEN THE SAME BAD NEWS FROM IBM HE IS AN IMPORT COORDINATOR AT A FACILITY IN NEARBY POUGHKEEPSIE TOGETHER THE SMITHS MAKE ABOUT 75000 A YEAR IBM KNOWS WE BOTH WORKED THERE SAYS MRS SMITH BITTERLY THEY KNOW THEY ARE WIPING OUT A TOTAL FAMILY'S INCOME HERE I GUESS THEY DON'T BELIEVE IN THAT RESPECT THE INDIVIDUAL' POLICY ANYMORE IBM DEMURS SAYING IT IS TREATING LAIDOFF INDIVIDUALS WITH DIGNITY AND WITH RESPECT THE SMITHS' HARSH SITUATION IS HARDLY UNIQUE DESPITE SIGNS OF ECONOMIC EXPANSION THE NUMBER OF JOBLESS COUPLES IS RISING SHARPLY TAKING A TOUGH EMOTIONAL AND ECONOMIC TOLL ON TWOINCOME HOUSEHOLDS BOTH THE HUSBAND AND THE WIFE WERE UNEMPLOYED IN 181000 FAMILIES LAST YEAR AN APPARENT RECORD LEVEL AND NEARLY DOUBLE THE 93000 FAMILIES IN THAT PREDICAMENT IN 1989 ACCORDING TO THE US BUREAU OF LABOR STATISTICS MORE EMPLOYED COUPLES WILL BECOME UNEMPLOYED COUPLES THIS YEAR SOME MANAGEMENT EXPERTS BELIEVE COSTCONSCIOUS CORPORATIONS KEEP DOWNSIZING AS THEY STRUGGLE WITH PROBLEMS OUTLASTING THE RECESSION BLOATED OPERATIONS UNPRODUCTIVE WORKERS GLOBAL COMPETITION AND SOARING HEALTHCARE EXPENSES IBM GENERAL MOTORS CORP BOEING CO SEARS ROEBUCK & CO AND OTHER CONCERNS RECENTLY HAVE ANNOUNCED REGIMENTALSIZE REDUCTIONS THERE ARE STILL GOING TO BE MORE CUTBACKS PARTICULARLY IN WHITECOLLAR JOBS PREDICTS ROBERT TOMASKO AN ARTHUR D LITTLE INC CONSULTANT AND AUTHOR OF A BOOK ON DOWNSIZING CHALLENGER GRAY & CHRISTMAS INC AN OUTPLACEMENT FIRM IN CHICAGO SAYS THE SPOUSE ALSO WAS JOBLESS AMONG 14 OF THE DISCHARGED INDIVIDUALS IT COUNSELED DURING THIS YEAR'S FIRST QUARTER THAT WAS UP FROM 10 IN THE SAME 1989 QUARTER IN SOME CASES RELAXED NEPOTISM RULES MEAN MORE SPOUSES ARE WORKING FOR AND BEING IDLED BY THE SAME BIG COMPANY THAT HAS AFFECTED COUPLES NOT ONLY AT IBM BUT ALSO AT GM BOEING MARTIN MARIETTA CORP AND ELSEWHERE TWO MARTIN MARIETTA ENGINEERS LEARNED ABOUT THEIR IMMINENT LAYOFFS WHEN THEY RETURNED FROM THEIR HONEYMOON LAST FALL PERSONNEL EXECUTIVES SAY IT IS UNFAIR TO AVOID DISMISSING EMPLOYEES SIMPLY BECAUSE THEY ARE MARRIED TO EACH OTHER IN OTHER INSTANCES BOTH HUSBANDS AND WIVES GET PINK SLIPS BECAUSE THEY WORK IN THE SAME DISTRESSED INDUSTRY OR SMALL TOWN THE TWO LARGEST MANUFACTURING PLANTS IN ANNA ILL A COMMUNITY WITH ABOUT 6000 RESIDENTS CLOSED WITHIN WEEKS OF EACH OTHER EARLIER THIS YEAR THE SHUTDOWNS BY INTERCO INC'S FLORSHEIM SHOE SUBSIDIARY AND LEWIS BROTHERS BAKERIES INC IDLED 325 PEOPLE INCLUDING NEARLY 50 MARRIED COUPLES LOCAL OFFICIALS SAY MY WORLD HAS JUST ABOUT CRUMBLED LAMENTS BARRY FOWLER A 56YEAROLD MAINTENANCE MAN AT THE LEWIS BAKERY FOR NEARLY 21 YEARS HIS WIFE JUDY DID PIECEWORK AT THE SHOE FACTORY FOR 30 YEARS THE COUPLE IS NOW STRUGGLING TO FIND FINANCIAL AID SO THEIR DAUGHTER CAN STAY IN NURSING SCHOOL A PARENTALSTRESS HOTLINE RUN BY THE NONPROFIT HUMAN NEEDS CENTER IN NOVATO CALIF GETS ABOUT 25 CALLS A MONTH FROM PARENTS FEARFUL OF ABUSING THEIR OFFSPRING BECAUSE THEY AND THEIR SPOUSES ARE OUT OF WORK FIVE YEARS AGO WE DIDN'T SEE SUCH CALLS AT ALL SAYS DEANNE ESZ THE HOTLINE'S DIRECTOR A DOUBLE LAYOFF CAUSES EXTREME CONFLICTS BETWEEN BOTH PARENTS SHE EXPLAINS SOMETIMES CHILDREN GET CAUGHT IN THE CROSSFIRE THOUGH THEY HAVE NO CHILDREN ROBERT AND MICHELLE MORT RANTA NEVERTHELESS KNOW THE MARITAL PRESSURES OF SHARED UNEMPLOYMENT WE GET ON EACH OTHER'S NERVES AND ARGUE AT TIMES SAYS 50YEAROLD MR RANTA THE SENIOR SALES MANAGER WAS LET GO LAST MONTH BY A RESTON VA TRAINING AND SOFTWAREDEVELOPMENT CONCERN THE COUPLE MOVED TO VIRGINIA FROM CALIFORNIA LAST FALL WHEN MR RANTA GOT THE RESTON POST AND ABOUT A 21 PAY INCREASE MRS RANTA 32 QUIT HER JOB AS A TRAINER FOR A CANON INC DEALER TO FOLLOW HER HUSBAND WHOSE NEW EMPLOYER HIRED HER TEMPORARILY TO HANDLE SPECIAL PROJECTS SHE HAS FRUITLESSLY SOUGHT WORK SINCE THE TEMPORARY JOB ENDED IN FEBRUARY MR RANTA SAYS THAT WHEN HE UNEXPECTEDLY LOST HIS JOB TENSIONS AROSE BECAUSE HIS WIFE BELIEVED HE SHOULD HAVE DEMANDED A GENEROUS SEVERANCE PACKAGE UPFRONT IN CASE HIS EMPLOYMENT LASTED LESS THAN A YEAR WE GOT INTO AN ARGUMENT THAT I SHOULD HAVE NEGOTIATED THAT HE REMEMBERS SUCH SIGNUP AGREEMENTS OFTEN PROVIDE SIX MONTHS OF SEVERANCE PAY INSTEAD MR RANTA SAYS HIS COMPANY GAVE HIM ABOUT THREE MONTHS OF SEVERANCE AND VACATION PAY PLUS JOB COUNSELING FROM MORGAN & BANKS INC AN OUTPLACEMENT FIRM WE HAVE GONE FROM ABOUT A 90000PLUS INCOME DOWN TO ZERO SOON WITH EXPECTATIONS THAT THE INCOME WAS GOING UP MRS RANTA OBSERVES WRYLY YET SHE SAYS I BELIEVE IT WILL WORK OUT WE BOTH HAVE SKILLS AND TALENTS THAT ARE MARKETABLE IN THIS AREA THEY ARE SEEKING WORK IN THE WASHINGTON DC REGION COORDINATING A DUAL JOB SEARCH IN A WIDER GEOGRAPHIC AREA CAN EXACERBATE AN UNEMPLOYED COUPLE'S HIGH ANXIETY AND PROLONG UNEMPLOYMENT OUTPLACEMENT COUNSELORS SAY CONSIDER RICHARD AND GAIL WAREK OF STAMFORD CONN IN LATE JANUARY DOWNSIZING COST MR WAREK HIS JOB AS AN ASSISTANT VICE PRESIDENT FOR BANK OF BOSTON JUST ONE MONTH LATER THE NEW YORK STATE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS ELIMINATED FOR BUDGETARY REASONS MRS WAREK'S POSITION AS MARKETING AND EDUCATION DIRECTOR THE CAREER COUPLE EARNED MORE THAN 125000 A YEAR BEFORE THEY JOINED THE JOBLESS ROLLS THE WAREKS ARE NOW SEEKING WORK IN THE MIDDLE ATLANTIC STATES BUT REALISTICALLY SPEAKING WE ARE LOOKING WHEREVER THE JOBS ARE SAYS MRS WAREK WHO IS 42 YEARS OLD WE HOPE WE END UP IN THE SAME CITY SHE ADDS ANXIOUSLY STANLEE PHELPS A VICE PRESIDENT OF THE LEE HECHT HARRISON OUTPLACEMENT FIRM IN IRVINE CALIF SAYS IT MAKES MORE SENSE FOR A JOBLESS COUPLE TO TARGET A PARTICULAR PLACE AND THEN THROW A LOT OF ENERGY INTO EITHER ONE OF THEM GETTING A TOEHOLD IN THAT AREA THE STILLUNEMPLOYED SPOUSE SHOULD BE ABLE TO FIND WORK IN THE NEW LOCATION ONCE A PAIR RELOCATES SHE SUGGESTS BUT LIFE DOESN'T ALWAYS WORK OUT SO NEATLY JUST ASK CALVIN GILBERT AND HIS WIFE KATHY LAVESPERE THE JOURNALISTS BOTH LOST THEIR NEWSPAPER JOBS IN OCTOBER 1991 AFTER THE MORNING ADVOCATE NOW SIMPLY THE ADVOCATE IN BATONROUGE LA FOLDED ITS AFTERNOON STATETIMES HE HAD BEEN THE MUSIC WRITER FOR BOTH PAPERS WHILE SHE WORKED AS AN ADVOCATE FEATURE WRITER THE COUPLE DECIDED THAT HE SHOULD TAKE THE LEAD IN JOB HUNTING BECAUSE MY WIFE IS MORE MARKETABLE THAN I AM MR GILBERT RECOLLECTS WE THOUGHT IT WOULD PROBABLY BE EASIER FOR HER TO BOUNCE INTO A JOB IN A DIFFERENT CITY THEY WERE WRONG IN MARCH 1992 MR GILBERT BECAME A COUNTRYMUSIC PUBLICIST IN NASHVILLE TENN HIS WIFE AND TWO YOUNG CHILDREN MOVED THERE LAST SUMMER MS LAVESPERE THEN BEGAN TO HUNT FOR ANOTHER JOURNALISM JOB APPLYING TO NASHVILLE NEWSPAPERS PUBLISHING HOUSES AND PUBLICRELATION AGENCIES I AM REALLY SURPRISED THE SEARCH HAS TAKEN THIS LONG THE 36YEAROLD JOURNALIST SAYS I GUESS IT'S BECAUSE THERE ARE SO MANY PEOPLE OUT OF WORK AND LOOKING FOR JOBS MR GILBERT AND MS LAVESPERE ARE HAVING TROUBLE COPING WITH THE FINANCIAL STRAIN MR GILBERT'S ACCEPTANCE OF AN 11000AYEAR PAY CUT AND HIS WIFE'S JOB LOSS ABOUT HALVED THE FAMILY'S INCOME TO 22000 A YEAR THEY HAVE WIPED OUT THEIR SAVINGS AND DIPPED INTO RETIREMENT MONEY FOR BASIC LIVING EXPENSES WE DON'T GO OUT TO EAT MUCH MS LAVESPERE NOTES I HAVEN'T BOUGHT CLOTHES FOR MYSELF MAINLY WE BUY WHAT WE ABSOLUTELY HAVE TO HAVE FOR THE KIDS THERE HAVE BEEN TIMES OVER THE PAST YEAR SHE CONFESSES WHEN I WOULD JUST SIT AND CRY 9305070156 930507 WITH CHINA'S TRADE STATUS UP IN THE AIR EXECUTIVES WATCH FOR A PREVAILING WIND BY LAURENCE ZUCKERMAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG AS THE ANNUAL DEBATE OVER CHINA'S MOSTFAVOREDNATION TRADE STATUS BEGINS US EXECUTIVES IN HONG KONG SAY THEY'RE LESS SURE OF THE OUTCOME THAN AT ANY TIME SINCE BEIJING'S BRUTAL 1989 CRACKDOWN ON PRODEMOCRACY STUDENTS THE EVENT THAT FIRST PUT THE ISSUE IN THE HEADLINES IF WE COULD CHARACTERIZE THE OUTLOOK FOR MFN AT THIS TIME IN ONE WORD IT WOULD BE UNCERTAIN' SAID FRANK MARTIN PRESIDENT OF THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG MR MARTIN ALONG WITH 16 OTHER CHAMBER OFFICIALS RECENTLY RETURNED FROM A WEEKLONG LOBBYING SWING THROUGH WASHINGTON IN PAST YEARS THE HIGHLY CHARGED POLITICAL ISSUE WAS FAIRLY STRAIGHTFORWARD PRESIDENT BUSH SUPPORTED AN UNCONDITIONAL RENEWAL OF CHINA'S MFN STATUS AND THE ONLY QUESTION WAS WHETHER DEMOCRATS WOULD MUSTER ENOUGH VOTES TO OVERRIDE HIS VETO OF ANY PROPOSED CHANGE THEY NEVER COULD THIS YEAR THE US HAS A NEW ADMINISTRATION AND PRESIDENT CLINTON WHILE ON THE CAMPAIGN TRAIL STRONGLY CRITICIZED WHAT HE CALLED MR BUSH'S CODDLING OF CHINA'S COMMUNIST REGIME INTERESTED PARTIES ARE WATCHING CLOSELY FOR CLUES TO THE SHAPE HIS NEW POLICY WILL TAKE TO THAT END MEMBERS OF MR MARTIN'S GROUP CALLED MORE THAN 100 TIMES ON LEGISLATORS AND WHITE HOUSE OFFICIALS DURING THEIR WASHINGTON TOUR THIS WAS A DIFFERENT EXPERIENCE FOR US WITH A NEW ADMINISTRATION SAID MR MARTIN IT WAS MUCH MORE DIFFICULT PIECING THINGS TOGETHER THAN IT WAS IN THE PAST MANY OF THE COMMENTS WERE CONTRADICTORY BOTH IN THE ADMINISTRATION AND ON CAPITOL HILL THE REASON HIS GROUP CONCLUDED IS THAT THE PRESIDENT AND HIS AIDES PREOCCUPIED WITH DOMESTIC ISSUES AND THE QUAGMIRE IN THE FORMER YUGOSLAVIA ARE ONLY BEGINNING TO THINK ABOUT A POLICY TOWARD CHINA THEIR PACE SHOULD QUICKEN AS THE JUNE 3 DEADLINE APPROACHES FOR A WHITE HOUSE DECISION ON MFN RENEWAL ALREADY DEMOCRATIC REP NANCY PELOSI OF CALIFORNIA AND SENATE MAJORITY LEADER GEORGE MITCHELL HAVE JOINTLY SPONSORED A BILL THAT WOULD BASE FUTURE MFN RENEWAL ON CHINA'S ACTIONS ON A HOST OF ISSUES INCLUDING HUMAN RIGHTS IMMIGRATION POLICY WEAPONS SALES MARKET ACCESS FOR US PRODUCTS THE USE OF PRISON LABOR AND THE RESETTLING OF TIBET WITH ETHNIC CHINESE THE WEAPONS ISSUE IS LIKELY TO TAKE ON EVEN GREATER SIGNIFICANCE FOLLOWING REPORTS THIS WEEK THAT CHINA CONTINUES TO SHIP SURFACETOSURFACE MISSILES TO PAKISTAN DESPITE A PLEDGE TO STOP TWO YEARS AGO ENACTMENT OF THE LEGISLATION WOULD EXTEND MFN STATUS TO CHINA IN 1993 WITH THE PROVISO THAT IT WOULDN'T BE RENEWED IN 1994 UNLESS BEIJING MODIFIES ITS BEHAVIOR BUT BEIJING HAS SAID THAT IT WILL NOT ACCEPT ANY CONDITIONS ON ITS TRADING STATUS WITH THE US THOUGH IT HASN'T SPECIFIED HOW IT WOULD RETALIATE IF CONDITIONS WERE IMPOSED IT'S A HIGHRISK GAME MR MARTIN SAID CHINA FEELS VERY STRONGLY THAT HAVING ANY CONDITIONS ON TRADE IS AN INFRINGEMENT ON ITS SOVEREIGNTY THE PELOSIMITCHELL BILL SEEKS TO APPEASE THE BUSINESS COMMUNITY BY FOCUSING SANCTIONS ON CHINA'S STATEOWNED ENTERPRISES RATHER THAN ITS EXPANDING PRIVATE SECTOR BUT MR MARTIN'S ORGANIZATION REJECTS SUCH AN APPROACH IT IS EXTREMELY DIFFICULT TO DEFINE A STATEOWNED ENTERPRISE MR MARTIN SAID A MASSIVE UNDERTAKING WOULD BE NEEDED BY CUSTOMS TO SORT IT OUT ON MONDAY MR CLINTON MET IN THE WHITE HOUSE WITH HONG KONG GOV CHRIS PATTEN VISITING WASHINGTON TO PRESS FOR UNCONDITIONAL MFN RENEWAL THE HONG KONG GOVERNMENT ESTIMATES THAT LOSS OF MFN STATUS FOR CHINA WOULD HALVE THE COLONY'S ECONOMICGROWTH RATE AND COST NEARLY 70000 JOBS AT A JOINT APPEARANCE WITH MR PATTEN MR CLINTON TOLD REPORTERS THAT CHINA HAD MADE SOME ENCOURAGING MOVES IN RECENT WEEKS AND THAT HE DIDN'T WISH TO ISOLATE BEIJING SUCH COMMENTS HEARTEN THOSE WHO FEEL THAT THE CHINESE MARKET PLAYS A ROLE OF GROWING IMPORTANCE TO AMERICAN BUSINESS BUT MR MARTIN SAID SUPPORTERS OF THE PELOSIMITCHELL BILL SUCH AS DEMOCRATIC SEN PAUL SIMON OF ILLINOIS FEEL THAT THE WHITE HOUSE HAS SIGNALED ITS SUPPORT TO THEM AS WELL MR MARTIN BELIEVES THE PRESIDENT HAS LITTLE CHOICE BUT TO DO SOMETHING TO LIVE UP TO HIS TOUGH CAMPAIGN RHETORIC BUT HE HOPES THAT MR CLINTON WILL CIRCUMVENT THE PASSAGE OF A BILL IN CONGRESS BY ISSUING AN EXECUTIVE ORDER IMPOSING LESS STRINGENT CONDITIONS THAT CHINA COULD ACCEPT I HAVE EVERY REASON TO BELIEVE THAT A DIALOGUE ON MFN BETWEEN THE CLINTON ADMINISTRATION AND CHINA IS CONTINUING HE SAID A NUMBER OF PEOPLE TOLD US THIS BUT WE COULDN'T GET ANY REAL INFORMATION ABOUT WHAT THEY ARE DISCUSSING WHETHER THAT IS THE CASE THE NEXT FOUR WEEKS WILL BE CRITICAL MR MARTIN SAID CONGRESS WILL BE MONITORING CHINA'S ACTIVITIES CLOSELY HE SAID LOOKING FOR CHINA TO CONTINUE TO DEMONSTRATE THAT IT IS PREPARED TO PARTICIPATE AS A RESPONSIBLE MEMBER OF THE INTERNATIONAL COMMUNITY 9305070155 930507 INTERNATIONAL SHARON FIGHTS TO SAVE CROPS ON ISRAEL FARM EXDEFENSE MINISTER FEELS LOSS OF BARRED PALESTINIAN WORKERS BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL SDEROT ISRAEL ARIEL SHARON'S CURRENT BATTLEFIELD STANDS IN THE ROLLING HILLS OF THE NORTHERN NEGEV DESERT THE FORMER ISRAELI GENERAL AND DEFENSE MINISTER HAS SPENT THE LAST MONTH FIGHTING TO GET THE CROPS ON HIS FARM PICKED BEFORE THEY ROT MR SHARON BOUGHT SHIIKMIM FARMS IN 1973 AFTER RETIRING FROM THE ISRAELI ARMY LIKE THOUSANDS OF OTHER ISRAELI FARMERS HE WAS LEFT SHORTHANDED LAST MONTH WHEN THE GOVERNMENT BARRED PALESTINIAN RESIDENTS OF THE WEST BANK AND THE GAZA STRIP FROM ENTERING ISRAEL TO WORK HE'S BEEN UNABLE TO FIND JEWISH WORKERS TO REPLACE THE 40 PALESTINIANS HE ONCE EMPLOYED TO PICK MELONS CABBAGE CELERY AND FLOWERS ON HIS 1000ACRE FARM EVERY DAY WE'RE FORCED TO MAKE HARD DECISIONS ABOUT WHICH CROP TO PICK AND WHICH ONE TO SACRIFICE IN ORDER TO TRY TO SAVE SOMETHING ELSE SAYS MR SHARON THE WHOLE SITUATION IS VERY PAINFUL ALTHOUGH MR SHARON IS A HAWK WHEN IT COMES TO DEFENSE HE SAYS HE'S TROUBLED BY THE DECISION TO SEAL OFF THE OCCUPIED TERRITORIES HE FAVORS REDUCING THE NUMBER OF PALESTINIANS WORKING IN ISRAEL AND INCREASING SECURITY CHECKS AT THE BORDER BUT ARGUES THAT TRYING TO SEPARATE PALESTINIANS FROM ISRAEL IS THE FIRST STEP TOWARD ESTABLISHMENT OF AN INDEPENDENT PALESTINIAN STATE AND ISRAEL'S RETURN TO THE JEWISH STATE'S PRE1967 BORDERS THE CLOSURE ISN'T THE SOLUTION TO TERROR MR SHARON 64 YEARS OLD SAID IN AN INTERVIEW ON HIS FARM IT IS DESTROYING THE LIVELIHOOD OF THOUSANDS OF JEWISH FARMERS CAUSING TERRIBLE SUFFERING TO TENS OF THOUSANDS OF ARABS WHO DON'T ENGAGE IN TERRORISM AND PUSHING MORE PALESTINIANS INTO THE ARMS OF THE TERRORISTS MR SHARON HIS TWO SONS WHO MANAGE THE FARM FULL TIME AND A SMALL CREW OF JEWISH AND THAI LABORERS HAVE BEEN WORKING AROUND THE CLOCK TO SALVAGE AS MUCH OF THE CROP AS POSSIBLE HE ESTIMATES THE LOSS AT HUNDREDS OF THOUSANDS OF DOLLARS IN A TYPICAL YEAR MR SHARON SAYS THE FARM EXPORTS 1000 TONS OF CELERY THIS YEAR IT IS STRUGGLING TO TOP 100 OUT IN THE FIELDS ROW AFTER ROW OF CABBAGE HAS BEEN PLOWED UNDER BECAUSE THERE IS NO TIME TO PICK IT THE SIGHT OF THE ROTTING HEADS OF CABBAGE UPSETS MR SHARON AS DO THE HUNDREDS OF THOUSANDS OF FLOWERS THAT REMAIN UNPICKED THEIR RED YELLOW AND PURPLE COLORS STARTING TO FADE AS THEY DROOP IN THE HEAT THE ORCHARD IS FULL OF RIPE GRAPEFRUIT AND OTHER CITRUS THAT WON'T MAKE IT TO THE EUROPEAN MARKET IN TIME AND WILL HAVE TO BE SOLD IF AT ALL AT LESS THAN HALF PRICE FOR INDUSTRIAL PROCESSING IN THE DISTANCE STAND THOUSANDS OF BALES OF FRESH HAY THAT NO ONE HAS HAD TIME TO HAUL TO THE BARN THE CLOSURE OF THE TERRITORIES IS THE LATEST BLOW TO ISRAELI AGRICULTURE WHICH SUFFERED A DROP IN WINTERSEASON EXPORTS THIS YEAR BECAUSE OF THE RECESSION IN WESTERN EUROPE WHERE NEARLY 80 OF ISRAELI FARM PRODUCTS ARE SOLD IN 1991 ISRAELI FARMERS LOST MONEY WHEN WORK CAME TO A STANDSTILL DURING THE GULF WAR AND LAST YEAR HEAVY WINTER RAINS DAMAGED CROPS EXTENSIVELY FARMERS TRYING TO COVER SOME OF THE PREVIOUS SEASONS' LOSSES BY INCREASING CULTIVATION NOW FIND THEMSELVES WITHOUT WORKERS AT THE HEIGHT OF THE HARVEST LABOR MINISTER ORA NAMIR HAS REFUSED FARMERS' REQUESTS TO INCREASE WORK PERMITS FOR THAI LABORERS TO REPLACE PALESTINIANS SHE SAYS THAT FARMERS HAVE GROWN DEPENDENT ON CHEAP LABOR AND THAT SHE CANNOT PERMIT FOREIGN WORKERS TO COME TO ISRAEL WHEN MORE THAN 100000 ISRAELIS REMAIN UNEMPLOYED YET DESPITE VAST UNEMPLOYMENT AND GOVERNMENTSPONSORED HIGHER WAGES FOR FARM WORK THERE ARE FEW TAKERS FOR AGRICULTURAL JOBS DESPITE THE FARMERS' TROUBLES THE VAST MAJORITY OF ISRAELIS SUPPORT THE CLOSURE OF THE OCCUPIED TERRITORIES THAT PRIME MINISTER YITZHAK RABIN SAYS HAS INCREASED SECURITY HOWEVER MR SHARON ARGUES THAT THE RECENT DECLINE OF VIOLENCE CAN BE ATTRIBUTED TO THE ARMY'S STEPPEDUP HOUSETOHOUSE SEARCHES FOR ARMS CACHES UNDERGROUND BUNKERS AND PALESTINIANS WANTED FOR TERRORIST ACTS THESE MEASURES HE SAYS COULD HAVE BEEN TAKEN WITHOUT CLOSING THE TERRITORIES OR CLOSING THEM ONLY FOR SHORT PERIODS THE LEFT SAYS THE SOLUTION TO TERRORISM IS POLITICAL BUT RECENT EVENTS HAVE PROVEN THAT THERE IS A MILITARY ANSWER TO THE PROBLEM BUT IT REQUIRES THE PRESENCE AND FULL CONTROL OF THE ARMY OVER THE AREA HE SAYS SOLDIERS ARE NOW ENTERING PLACES WHERE THEY HADN'T GONE IN YEARS AND WHICH WERE CONTROLLED BY TERRORIST GROUPS RIGHT NOW THE GOVERNMENT IS USING PEOPLE'S FEAR TO TRY TO RESTORE THE PRE1967 BORDERS THIS PUSH TOWARD SEPARATION IS CREATING THE BACKGROUND FOR A DANGEROUS SECURITY SITUATION IN THE FUTURE HE SAYS AS HE GAZES OUT AT HIS FIELDS HE ADDS BUT AS FOR TODAY I NEED TO DEAL WITH THE MELONS AND THE FLOWERS 9305070154 930507 WHO'S NEWS CAPX CORP CAPX CORP ALBUQUERQUE NM STEVEN SIMON 44YEAROLD FOUNDER OF AMERICAN LIFE RESOURCES CORP WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDING AS PRESIDENT NUNZIO P DESANTIS 42 WHO REMAINS CHAIRMAN THE OPERATING CHIEF POST IS NEWLY CREATED CAPX ACQUIRED AMERICAN LIFE A MONTH AGO 9305070153 930507 WHO'S NEWS PAINEWEBBER GROUP INC PAINEWEBBER GROUP INC NEW YORK JOSEPH J GRANO JR 45 YEARS OLD WAS ELECTED TO THE 12MEMBER BOARD SUCCEEDING A DIRECTOR WHO DIDN'T STAND FOR REELECTION MR GRANO IS PRESIDENT RETAIL SALES AND MARKETING FOR PAINEWEBBER A MAJOR SECURITIES BROKERAGE HOUSE 9305070152 930507 WHO'S NEWS EVEREST MEDICAL CORP EVEREST MEDICAL CORP MINNEAPOLIS MICHAEL J HOLLENHORST 50YEAROLD CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT OF THIS MEDICAL DEVICE MAKER RESIGNED DAVID D KOENTOPF 49 FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LIFETOUCH INC WAS NAMED INTERIM PRESIDENT AND CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF EVEREST THERE ARE NOW SIX BOARD MEMBERS 9305070151 930507 WHO'S NEWS ITT CORP ITT CORP NEW YORK PATRICK J BIRMINGHAM WAS NAMED PRESIDENT OF THE EUROPE AFRICA AND MIDDLE EAST DIVISION AT THIS CONGLOMERATE'S ITT SHERATON CORP UNIT A POSITION THAT HAD BEEN VACANT FOR SEVERAL YEARS MR BIRMINGHAM 56 YEARS OLD HAD BEEN SENIOR VICE PRESIDENT OF ITT SHERATON AND DIRECTOR OF OPERATIONS OF ITS HAWAIIJAPAN DIVISION 9305070150 930507 PEP BOYS SALES RISE PHILADELPHIA PEP BOYSMANNY MOE & JACK SAID SALES FOR THE 13 WEEKS ENDED MAY 1 ROSE 9 TO 2991 MILLION FROM 2756 MILLION WHILE COMPARABLESTORE SALES ROSE 3 IN PART DUE TO POOR WEATHER CONDITIONS DURING THE QUARTER THE AUTO PARTS RETAILER OPENED THREE WAREHOUSEFORMAT CENTERS AND IN APRIL OPENED ITS FIRST STORE IN NEW ENGLAND PEP BOYS WHICH OPERATES 359 STORES IN 21 STATES SAID IT EXPECTS TO OPEN AS MANY AS 37 MORE UNITS DURING THE BALANCE OF ITS FISCAL YEAR 9305070149 930507 THE AMERICAS COLOMBIA'S TERRORISTS LOSING THEIR POWER TO INTIMIDATE BY JUAN DANIEL JARAMILLO BOGOTA I HAD JUST STEPPED INTO MY OFFICE AFTER RETURNING FROM LUNCH WHEN I HEARD A DREADFUL SOUND COMING FROM THE NEXT BLOCK OVER I HAD NEVER HEARD OR FELT SHOCK WAVES FROM A BLAST THAT POWERFUL A NUMBING THUD THAT DID NOT LEAVE AN ECHO A SPLIT SECOND LATER FEELING DIZZY AND ANGUISHED I COULD SEE AND HEAR DOZENS OF LARGE AND SMALL WINDOWS CRUMBLING IN A DEAFENING NOISE PRODUCED BY THE EXPLOSIVE WAVE A THICK BALL OF BLACK SMOKE IMMEDIATELY ROSE TO THE SKY FOLLOWED BY POWDER FLASHES OF REDDISH COLOR MIRACULOUSLY I WAS ONE OF THE FEW IN THE BUILDINGS SURROUNDING THE BLAST THAT SURVIVED WITHOUT A SCRATCH OUTSIDE THERE WAS CHAOS TERRIFIED PEOPLE WERE RUNNING IN ALL DIRECTIONS WOMEN WERE CRYING AND SEVERAL OF THE WOUNDED WERE LYING ON THE PAVEMENT THE MOST PAINFUL SCENE WAS THAT OF A MAN CARRYING IN HIS ARMS A LITTLE BOY OF AROUND FIVE THE BOY'S FACE HIDDEN BY A LAYER OF BLOOD THE MAN WAS DESPERATELY ASKING FOR HELP I LATER LEARNED THAT THE BOY'S PARENTS AND HIS ONLY SISTER HAD BEEN KILLED INSTANTLY IN THE BLAST ON APRIL 15 IT FINALLY BECAME MY TURN TO BECOME A PLAYER IN THE NARCOTERRORIST VIOLENCE THAT IS SHAKING COLOMBIA SO MERCILESSLY THE SOURCE OF THE EXPLOSION WAS A CAR FILLED WITH 100 KILOS OF AMMONIACAL DYNAMITE IT WAS EXPLODED IN THE CENTRO 93 A COMMERCIAL AND OFFICE COMPLEX LOCATED IN THE FASHIONABLE DISTRICT OF EL CHICO IN THE COLOMBIAN CAPITAL'S NORTHEAST THE GOVERNMENT'S INTELLIGENCE SERVICES DID NOT TAKE LONG TO BLAME DRUG KINGPIN PABLO ESCOBAR FOR THIS CRIMINAL ACT WHICH CAUSED 11 DEATHS 108 INJURIES AND MATERIAL LOSSES IN THE MILLIONS OF DOLLARS THESE ARE THE PHYSICAL DAMAGES THE PSYCHIC DAMAGES ARE ALMOST AS COSTLY AN UNBEARABLE CLIMATE OF UNEASINESS KEEPS NERVES ON EDGE AND STOMACHS KNOTTED EVERY CAR OR TRUCK LOOKS SUSPICIOUS AND IT IS BETTER THEREFORE NOT TO STAND IN ONE PLACE FOR VERY LONG EYES AND FEET ARE ALWAYS MOVING NOTWITHSTANDING THE FRAYED NERVES THERE IS A DRAMATIC CHANGE IN THE CHARACTER OF THE COLOMBIAN PEOPLE NO LONGER DO THE CAR BOMBS AND SUBSEQUENT TELEVISION IMAGES OF SHATTERED BODIES AND MUTILATED CHILDREN HAVE THE INTIMIDATING EFFECT SOUGHT BY THE TERRORIST ATTACKERS THREE OR FOUR YEARS AGO FACING THE HORRIFYING ACTIONS CARRIED OUT BY THE CARTEL THE GOVERNMENT WAS FORCED BY PUBLIC OPINION TO NEGOTIATE AND PRESENT CONCESSIONARY FORMULAS TO DRUG KINGPINS NOWADAYS HOWEVER THE FEELINGS OF ANGER AND INDIGNATION HAVE GAINED GROUND AND THERE IS LITTLE SPACE LEFT FOR INTIMIDATION RAGE HAS TRIUMPHED OVER FEAR THE NIGHT OF THE ATTACK PRESIDENT CESAR GAVIRIA CONVENED AN URGENT SESSION OF THE COUNCIL OF MINISTERS IN ORDER TO ISSUE DECREES TO DOUBLE PENALTIES FOR TERRORISM IN ADDITION REWARDS FOR CONFESSIONS OR VOLUNTARY SURRENDERS ARE ELIMINATED UNLESS THE DEFENDANT COOPERATES WITH AUTHORITIES IN THE PROCESS OF IDENTIFICATION AND APPREHENSION OF COAUTHORS OF THE CRIME OF COURSE PEOPLE ARE SKEPTICAL OF SUCH MEASURES IN LIGHT OF THE FACT THAT FIVE CAR BOMBINGS IN BOGOTA IN JUST THE FIRST FOUR MONTHS OF 1993 HAVE LEFT 59 DEAD AND 281 WOUNDED IN SPITE OF THIS PABLO ESCOBAR IS INCREASINGLY FENCED IN HIS CRIMINAL ORGANIZATION FINDS ITSELF PRACTICALLY DISMANTLED HIS MAIN LIEUTENANTS ARE ALL DEAD OR IN JAIL HE AND HIS ASSOCIATES ARE BEING HUNTED DOWN BY TWO DEADLY GROUPS THE SEARCH SQUAD BLOQUE DE BUSQUEDA A GROUP THE GOVERNMENT HAS ORGANIZED TO LOCATE HIM AND BY THE A CLANDESTINE BAND THAT BEGAN TO OPERATE THREE MONTHS AGO CALLED PEPES A SPANISH ACRONYM FOR THOSE PERSECUTED BY PABLO ESCOBAR PEPES HAS KILLED MANY MEMBERS OF THE ESCOBAR CARTEL AND BURNED DOWN THEIR APARTMENT BUILDINGS AND LUXURIOUS COUNTRY HOUSES IN OR NEAR MEDELLIN IN FACT UNDER THE MAXIM OF AN EYE FOR AN EYE AND A TOOTH FOR A TOOTH A FEW HOURS AFTER THE CENTRO 93 TERRORIST ATTACK PEPES GUNMEN KILLED ESCOBAR LAWYER GUIDO PARRA AND HIS YOUNG SON THUS FOR EVERY VIOLENT ACTION TAKEN BY ESCOBAR HE IS DIGGING DEEPER INTO A TUNNEL WITH NO APPARENT EXIT ESCOBAR'S OBJECTIVE CONTINUES TO BE TO KILL AS MANY PEOPLE AS POSSIBLE ON EACH HIT BY DOING SO ALL THE GOVERNMENT'S EFFORTS AND ACCOMPLISHMENTS APPEAR INEFFECTIVE BUT WHAT THE MADDENED DRUG KINGPIN SEEMS TO BE OVERLOOKING IS THAT THE LIMIT OF INTIMIDATION HAS BEEN REACHED AND THE PUBLIC IS READY TO ENDORSE ALMOST ANY TOUGH MEASURE ON THE DAY OF THE LAST ATTACK MOST PEOPLE WERE CALLING FOR THE DEATH PENALTY THE VIGILANTE GROUP PEPES PROVOKES A KIND OF SYMPATHY AMONG MANY COLOMBIANS THE WILL TO COMPROMISE IS ALMOST UNHEARD OF TODAY IN JUST A FEW MONTHS THE COUNTRY WILL BEGIN IN EARNEST THE PRESIDENTIAL DEBATE TO ELECT A SUCCESSOR TO PRESIDENT GAVIRIA IF ESCOBAR IS STILL ALIVE THEN HE MAY TRY TO DISRUPT IT THROUGH TERRORIST ATTACKS IN 1989 HE ATTEMPTED TO DO THIS BY ASSASSINATING LIBERAL PARTY CANDIDATE LUIS CARLOS GALAN AND OTHERS BUT EVEN WITH A MORE COMPROMISING PUBLIC ESCOBAR WAS INCAPABLE OF ACHIEVING HIS GOAL NOW WITH A STRAIGHTFORWARD AVERSION TOWARDS HIM HE WILL BE EQUALLY HELPLESS TO THWART THE COUNTRY'S ELECTORAL CAMPAIGN IN FACT BOTH LEADING CANDIDATES ALREADY HAVE FACED INTIMIDATION FROM ESCOBAR'S HENCHMEN ANDRES PASTRANA A FORMER MAYOR OF BOGOTA WHO IS AHEAD IN EVERY POLL TAKEN SO FAR WAS KIDNAPPED BY THE CARTEL IN 1988 AND MR PASTRANA'S LIKELY OPPONENT ENRIQUE PARAJO GONZALEZ IS A FORMER JUSTICE MINISTER WHO SURVIVED A CARTEL ATTEMPT ON HIS LIFE IN BUDAPEST HUNGARY IN 1987 BOTH MEN HAVE SHOWN THE INDIVIDUAL COURAGE TO RISK THEIR LIVES IN PROMOTING THE DEMOCRATIC PROCESS IN COLOMBIA WHATEVER PLANS ESCOBAR HAS ON HIS MIND THE SUSTAINED PRESSURE AGAINST HIM IS REFLECTED IN THE POOR ORGANIZATION OF HIS LAST ATTACK LESS THAN A WEEK AFTER THE BOMBING COLOMBIAN INTELLIGENCE HAD CAPTURED THE MEN WHO CARRIED OUT THE CENTRO 93 SLAUGHTER THEY WERE FROM A GROUP OF PETTY CRIMINALS WHO HAD EACH BEEN PAID 2 MILLION PESOS 2700 TO PERPETRATE THE ACTION IN A CHAIN OF MUTUAL ACCUSATIONS THEY WERE ALL RAPIDLY SEIZED ALL OF WHICH REVEALS THAT THE CARTEL'S INTELLIGENCE SOURCES ARE DEEPLY DAMAGED AND AN ACUTE SHORTAGE OF EXPERIENCED STAFF EXISTS WHILE ESCOBAR HAS SHOWN AN INCREDIBLE ABILITY TO RECOVER THE FEAR ONCE INSPIRED BY THE POWERFUL DRUG GANGSTER NO LONGER PERMEATES THE COUNTRY THE HARROWING CENTRO 93 EPISODE WAS REPLACED THE NEXT DAY BY A COLLECTIVE DISPLAY OF MUTUAL SUPPORT IN A MATTER OF HOURS IN SPITE OF TONS OF BROKEN GLASS AND DEMOLISHED BUILDINGS THE COMMUNITY PULLED TOGETHER TO CLEAN UP THE RUBBLE A SENSE OF ORDER AND DIGNITY PREVAILED THAT DAY COLOMBIANS TACITLY VOWED TO COMPROMISE NO MORE WITH THOSE WHO SEEK TO UNDERMINE THEIR DEMOCRACY OR BEND THEIR INDUSTRIOUS SPIRIT MR JARAMILLO IS A COLOMBIAN LAWYER AND ECONOMIST 9305070148 930507 WHO'S NEWS TOTAL PETROLEUM NORTH AMERICA LTD TOTAL PETROLEUM NORTH AMERICA LTD DENVER MICHEL LEGENDRE VICE PRESIDENT OF TOTAL SA AND JEANPAUL VETTIER EXECUTIVE VICE PRESIDENT AT THE TOTAL SA REFINING AND MARKETING DIVISION WERE NAMED DIRECTORS OF THIS US SUBSIDIARY OF THE FRENCH PETROLEUM REFINING AND MARKETING COMPANY ONE DIRECTOR REPLACES PHILIPPE DUNOYER WHO DIDN'T STAND FOR REELECTION THE OTHER IS AN ADDITIONAL POST THAT INCREASES THE SIZE OF THE BOARD TO NINE FROM EIGHT 9305070147 930507 BIOTECH COMPANIES SEEKING CUSTOMERS INVESTORS IN EUROPE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON US BIOTECHNOLOGY COMPANIES ARE INCREASINGLY LOOKING TO EUROPE FOR NEW CUSTOMERS PARTNERS AND INVESTORS THOUGH TRANSATLANTIC LINKS IN BIOTECHNOLOGY DATE BACK TO THE 1970S LATELY US COMPANIES HAVE BEEN HUNTING IN EUROPE WITH MORE ZEAL IT'S PRUDENT FOR AN AMERICAN TO BE NOT JUST LOOKING AT THE US MARKET SAYS PAUL SCHMITT PRESIDENT AND CHIEF EXECUTIVE OF DNX CORP A PRINCETON NJ BIOTECHNOLOGY COMPANY AS IN CONVENTIONAL PHARMACEUTICALS HE SAYS SO IN BIOTECHNOLOGY EUROPE IS A SIGNIFICANT MARKET FOR THESE PRODUCTS AS A CASE IN POINT DNX LAST DEC 16 ACQUIRED A FRENCH COMPANY THAT PROVIDES SPECIALIZED LABORATORY SERVICES FOR THE BIOTECHNOLOGY AND PHARMACEUTICAL INDUSTRIES THE 102 MILLION PURCHASE TURNED DNX OVERNIGHT FROM A PAROCHIAL US BUSINESS INTO A FIRM WITH TWOTHIRDS OF ITS REVENUE IN EUROPE IN THE FIRST QUARTER 34 MILLION OF DNX'S 51 MILLION REVENUE CAME FROM EUROPE AT THE SAME TIME MR SCHMITT SAYS THE EUROPEAN LINK HELPED DNX'S RELATIONS WITH ITS US CUSTOMERS BY BROADENING THE RANGE OF LAB SERVICES IT CAN OFFER THEM IT AND OTHER US COMPANIES ALSO HAVE HOPES OF TAPPING MORE EUROPEAN CAPITAL AS INVESTOR INTEREST IN BIOTECHNOLOGY PERKS UP THOUGH BIG EUROPEAN INVESTORS REMAIN CAUTIOUS ABOUT FUNDING STARTUP BIOTECHNOLOGY VENTURES THERE'S A LOT OF VERY LARGE MONEYMANAGEMENT FIRMS IN EUROPE INTERESTED IN MOREMATURE BIOTECHNOLOGY COMPANIES WITH A PORTFOLIO OF PRODUCTS IN ADVANCED STAGES OF DEVELOPMENT SAYS DR MICHAEL RIORDAN PRESIDENT AND CHIEF EXECUTIVE OF GILEAD SCIENCES INC EUROPEANS HOLD 10 TO 15 OF THE FOSTER CITY CALIFBASED BIOTECHNOLOGY COMPANY'S SHARES NOT COUNTING A 5 STAKE HELD BY BRITISH DRUG GIANT GLAXO HOLDINGS PLC AS A SIGN OF THEIR EUROPEAN AMBITIONS GILEAD AND DNX WERE AMONG NINE US BIOTECHNOLOGY COMPANIES PARADING THEIR WARES HERE LAST WEDNESDAY BEFORE EUROPEAN INVESTORS ATTENDING A CONFERENCE ORGANIZED BY BIOTECHNOLOGY INVESTMENTS LTD A LONDONBASED INVESTMENT FUND AND USBASED SECURITIES FIRM HAMBRECHT & QUIST INC SO FAR ESTIMATES JEREMY CURNOCK COOK A DIRECTOR OF ROTHSCHILD ASSET MANAGEMENT LTD BIOTECHNOLOGY INVESTMENTS' ADVISERS EUROPEANS HAVE PROVIDED ROUGHLY 10 OF THE 55 BILLION IN CAPITAL RAISED BY THE US BIOTECHNOLOGY INDUSTRY SINCE 1991 BUT MORE MAY BE COMING THOUGH BIOTECHNOLOGY REMAINS A HIGHRISK INVESTMENT THE SUCCESS OF SOME US COMPANIES HAS ENCOURAGED EUROPEAN INVESTORS LAST SUMMER BRITISH BIOTECHNOLOGY PLC BECAME THE FIRST STARTUP TO GET ITS SHARES LISTED ON A MAJOR EUROPEAN STOCK EXCHANGE AND AT LEAST TWO MORE BRITISH BIOTECHNOLOGY CONCERNS CELLTECH LTD AND XENOVA LTD ARE PREPARING TO TRY JOINING BRITISH BIOTECHNOLOGY ON LONDON'S STOCK EXCHANGE THOUGH STILL NO EASY SELL WE'RE FINDING IT EASIER TO RAISE MONEY FROM EUROPEAN INVESTORS FOR BIOTECHNOLOGY SAYS MR CURNOCK COOK 9305070146 930507 BONTON STORES APRIL SALES FELL FOR THE 13 WEEKS THROUGH MAY 1 SALES ROSE 24 TO 658 MILLION FROM 642 MILLION AND COMPARABLE STORE SALES FELL 38 OFFICIALS CITED WEAK CONSUMER CONFIDENCE AND LATE SPRING WEATHER BONTON OPERATES 35 DEPARTMENT STORES 9305070145 930507 HEARD ON THE STREET ONCE A BOND MARKET POWERHOUSE DISCOUNT CORP IS NOW IN A STRUGGLE TO SURVIVE ON WALL STREET BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN KEEPING WITH ITS NAME DISCOUNT CORP OF NEW YORK HAS ALL THE HALLMARKS OF A CHEAP STOCK THE COMPANY'S SHARES CLOSED YESTERDAY AT 6 3/8 A HEFTY DISCOUNT TO THEIR 8 BOOK VALUE THE STOCK IS ALSO TRADING FAR BELOW ITS 52WEEK HIGH OF 11 1/2 AND ITS ALLTIME HIGH OF 30 BUT YOU MAY NOT WANT TO RUSH OUT AND LOAD UP ON THIS OLDLINE BOND FIRM WHICH ONE OF A SMALL GROUP OF PRIMARY DEALERS THAT CAN TRADE GOVERNMENT SECURITIES DIRECTLY WITH THE FEDERAL RESERVE THE STOCK BATTERED EARLIER THIS YEAR AFTER THE COMPANY REPORTED A LARGE FOURTHQUARTER TRADING LOSS COULD SOON BE HIT BY MORE BAD NEWS FOLLOWING THE RECENT LOSS GOLDMAN SACHS WAS HIRED TO HELP THE COMPANY WEIGH ITS OPTIONS INCLUDING RAISING CAPITAL OR FINDING A BUYER FOR THE BELEAGUERED FIRM BUT GOLDMAN IS STILL SEARCHING FOR A TAKER ONE PROSPECT A EUROPEAN BANK WHICH HAD AN INTEREST IN BUYING DISCOUNT CORP IS SAID TO HAVE HAD A CHANGE OF HEART NOW BOND TRADING DESKS ARE ABUZZ WITH RUMORS THAT DISCOUNT CORP MAY BE LIQUIDATED AND ITS ROUGHLY 70 MILLION IN CAPITAL DISTRIBUTED TO SHAREHOLDERS OTHERS BELIEVE THE FIRM WHICH HAS 79 EMPLOYEES WILL BE SCALED BACK EVEN FURTHER AND RELOCATED TO NEW JERSEY RAPHAEL DE LA GUERONNIERE THE COMPANY'S CHIEF EXECUTIVE OFFICER DECLINED TO COMMENT ON THE COMPANY'S CURRENT EFFORTS TO RAISE CAPITAL OR FIND A BUYER WHATEVER WE DO WILL BE IN THE BEST INTERESTS OF SHAREHOLDERS HE SAYS SEVERAL BIGTIME MONEY MANAGERS HAVE ALREADY BEEN BURNED ON INVESTMENTS IN THE ONCE VENERABLE DISCOUNT CORP MICHAEL PRICE THE WELLKNOWN MANAGER OF THE MUTUAL SERIES MUTUAL FUNDS AND ONE OF THE COMPANY'S LARGEST STOCKHOLDERS INVESTED ABOUT 8 MILLION IN THE COMPANY 10 YEARS AGO WHEN THE STOCK WAS AROUND 10 THIS IS 10 YEARS WE'VE EARNED NO MONEY ON THIS STOCK MR PRICE SAYS MR PRICE AND OTHERS BELIEVE DISCOUNT CORP'S DECLINE BEGAN IN EARLY 1987 WHEN ITS TOP BOND TRADER AND PRESIDENT ANTHONY BUDDY HANLON RETIRED I'M KICKING MYSELF FOR NOT SELLING WHEN HANLON LEFT MR PRICE SAYS THE MOUNTING PROBLEMS OF DISCOUNT CORP IN THE YEARS THAT FOLLOWED SUGGEST THE PITFALLS OF A BUSINESS CLOSELY IDENTIFIED WITH A SINGLE TALENTED INDIVIDUAL IT IS ALSO A GOOD ILLUSTRATION OF HOW DRASTICALLY THE GOVERNMENT BOND TRADING BUSINESS HAS CHANGED FROM THE DAYS WHEN IT WAS A CLUBBY AFFAIR RUN BY OLDLINE COMPANIES BIG WALL STREET FIRMS BEGAN MUSCLING INTO THE BOND TRADING BUSINESS DURING THE 1980S SNAPPING UP PRIMARY DEALERS ALONG THE WAY BUT 75YEAROLD DISCOUNT CORP SURVIVED AS AN INDEPENDENT FIRM BECAUSE OF ITS TRADING PROWESS EMBODIED DURING THE 1980S BY MR HANLON HE DECLINED TO COMMENT FOR THIS ARTICLE ONE OF DISCOUNT'S TOP BOND TRADERS WHO NOW WORKS AT ANOTHER WALL STREET FIRM SAYS HANLON HAD A GREAT GUT FEELING FOR THE BOND MARKET'S DIRECTION AT TIMES HE WOULD CONCENTRATE SO HARD WHILE TRADING THAT HE ALMOST SEEMED IN A TRANCE MR HANLON'S SKILL AS A TRADER ALLOWED THE FIRM TO MAKE HUGE AND AGGRESSIVE BETS IN THE BOND MARKET SOMETIMES RESULTING IN WILD SWINGS IN THE COMPANY'S CAPITAL BASE DURING 1981 FOR EXAMPLE DISCOUNT CORP RISKED LOSING NEARLY ALL OF ITS CAPITAL ON A LARGE INVESTMENT IN BONDS SAYS EDWARD SAWICZ THE FIRM'S FORMER ECONOMIST WHO IN 1987 TOOK OVER AS PRESIDENT WHEN MR HANLON RESIGNED AND LED THE FIRM UNTIL 1991 BUT THERE WAS A SURPRISE LOWERING OF THE FED'S DISCOUNT RATE IN THE FOURTH QUARTER THAT SAVED US HE SAYS IN OTHER YEARS DISCOUNT CORP'S FINANCIAL RESULTS WERE TRANSFORMED FROM MEDIOCRE TO OUTSTANDING IN A SINGLE DAY ON OCT 19 1987 THE DAY OF THE STOCKMARKET CRASH DISCOUNT CORP MADE 75 MILLION PRETAX THE FIRM SNAPPED UP GOVERNMENT SECURITIES OF NEARLY EVERY MATURITY AMASSING A MULTIBILLION DOLLAR PORTFOLIO BY THE END OF THE DAY WHEN THE FEDERAL RESERVE CUT INTEREST RATES TO SUPPORT THE STOCK MARKET THE VALUE OF THE BOND POSITION SKYROCKETED THE PROFIT SENT DISCOUNT CORP'S NET INCOME FOR THAT YEAR SOARING TO 22 MILLION FROM 8 MILLION THAT WAS THE LAST GREAT TRADE WE MADE AFTER BUDDY LEFT SAYS ANOTHER TRADER INDEED BY 1988 DISCOUNT CORP BEGAN LOSING MONEY SHOWING A LOSS OF 85 MILLION THAT YEAR FOLLOWED BY A 19 MILLION LOSS IN 1989 THE FIRM POSTED A 38 MILLION PROFIT IN 1990 BEFORE ANOTHER LOSS OF 135 MILLION IN 1991 THE MOST RECENT PROBLEM AT DISCOUNT CORP WHICH CONTRIBUTED TO THE DECISION TO HIRE GOLDMAN WAS A FOURTHQUARTER LOSS OF ABOUT 26 MILLION THE LOSS DEALT A BAD BLOW TO DISCOUNT LEAVING IT WITH JUST 70 MILLION IN CAPITAL ABOUT 10 MILLION OF THE LOSS RESULTED FROM A BAD BET IN THE FRENCH BOND MARKET LAST YEAR DISCOUNT GAMBLED THAT FRENCH INTEREST RATES WOULD TUMBLE BUT UNLIKE OTHER INVESTORS WHO BET ON A DROP IN LONGTERM FRENCH INTEREST RATES DISCOUNT BOUGHT FUTURES CONTRACTS ON SHORTTERM FRENCH BONDS IF IT HAD BEEN RIGHT DISCOUNT WOULD HAVE MADE A BUNDLE AS THE VALUE OF ITS CONTRACTS SOARED WHEN RATES FELL ITS PAYOFF WOULD HAVE BEEN ESPECIALLY HANDSOME SINCE SHORTTERM RATES OFTEN FALL FASTER THAN LONGTERM RATES BUT WHEN FRANCE'S CENTRAL BANK RAISED INTEREST RATES LATE LAST YEAR IN AN EFFORT TO PROTECT THE VALUE OF THE FRENCH FRANC SHORTTERM INTEREST RATES SHOT UP POUNDING THE VALUE OF DISCOUNT CORP'S FUTURES CONTRACTS THE LOSS WAS ONE OF THE REASONS FOR THE RESIGNATION OF DAVID BOOTH A HOTSHOT BOND TRADER FROM MORGAN STANLEY WHO WAS PRESIDENT OF THE FIRM MR BOOTH DECLINED TO COMMENT ON HIS REASONS FOR LEAVING BUT PEOPLE CLOSE TO THE SITUATION SAY HE OBJECTED TO DISCOUNT'S STRATEGY OF MAKING HIGHRISK BETS LIKE THE GAMBLE ON FRENCH INTEREST RATES BUT IT'S NOT JUST BAD TRADES THAT HAVE HOBBLED DISCOUNT CORP FOR YEARS THE COMPANY HAS BEEN HAMSTRUNG BY ITS LARGE ANNUAL OPERATING EXPENSES NOW 16 MILLION A YEAR BUT ONCE AS HIGH AS 50 MILLION A YEAR TO FOOT THAT BILL DISCOUNT CORP CONSTANTLY HAD TO MAKE AGGRESSIVE BETS IN ORDER TO COME OUT IN THE BLACK ACCORDING TO MR SAWICZ BUT IT BECAME HARDER AND HARDER TO WIN EACH BET AFTER MR HANLON LEFT HE SAYS AND AFTER 1987 THE POOL OF CAPITAL THE COMPANY WAS BETTING WITH BECAME SMALLER AND SMALLER WHEN MR DE LA GUERONNIERE DISCOUNT'S CHIEF EXECUTIVE ARRIVED IN 1991 TO TRY AND TURN THE COMPANY AROUND HE STARTED SELLING DISCOUNT'S FARFLUNG OPERATIONS SURGERY RATHER THAN BANDAIDS WAS REQUIRED SAYS MR DE LA GUERONNIERE BUT BY THEN THE BATTLE HAD ALREADY BEEN LOST FORMER EMPLOYEES SAY WE WERE ECLIPSED BY THE BIG HOUSES SAYS MR SAWICZ WE NEVER DID MORTGAGEBACKED BONDS OR CORPORATE BONDS OTHER FIRMS JUST LEFT US IN THE DUST NOW SOME BELIEVE THE FIRM'S PRIMARY DEALERSHIP MAY NOT BE ENOUGH TO ATTRACT A BUYER THE DAYS OF PAYING A PREMIUM FOR A PRIMARY DEALERSHIP ARE OVER MR SAWICZ SAYS WITHOUT A BUYER OR A QUICK LIQUIDATION DISCOUNT CORP IS LIKELY TO BE A LOSING PROPOSITION FOR SHAREHOLDERS IF THE FIRM WAS LIQUIDATED TOMORROW AND ITS 70 MILLION IN CAPITAL DIVVIED UP AMONG ITS 81 MILLION SHARES OUTSTANDING SHAREHOLDERS WOULD GET OVER 8 A SHARE A HEALTHY PREMIUM TO THE CURRENT 6 3/8 SHARE PRICE BUT IF DISCOUNT CONTINUES TO OPERATE THE COMPANY WILL BE HARDPRESSED TO EARN DECENT PROFITS IN A BUSINESS NOW DOMINATED BY WALL STREET'S LARGEST BROKERAGE FIRMS WITH BUDDY HANLON NO LONGER AROUND THE COMPANY PROBABLY WON'T BE ABLE TO TRADE ITS WAY OUT OF ITS CURRENT DILEMMA 9305070144 930507 ECONOMY BANKING INDUSTRY IS IN LONGTERM FALL DESPITE CURRENT HEALTH GREENSPAN SAYS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DESPITE ITS CURRENT ROBUST HEALTH THE BANKING INDUSTRY IS IN THE COURSE OF A WORRISOME LONGTERM DECLINE FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN SAID IN A SPEECH AT A CHICAGO FEDERAL RESERVE BANK CONFERENCE ON BANK STRUCTURE MR GREENSPAN NOTED THAT BANK COMMERCIAL AND INDUSTRIAL LENDING AS A PERCENTAGE OF TOTAL BORROWING BY NONFINANCIAL BUSINESS HAS BEEN DECLINING FOR SEVERAL DECADES INCREASINGLY COMPANIES ARE BORROWING DIRECTLY FROM INVESTORS RATHER THAN THROUGH BANKS MR GREENSPAN SAID HE WAS CONFIDENT THAT THE PROSPERITY OF THE COMMERCIAL BANKING INDUSTRY WHICH EARNED RECORD PROFITS AND REBUILT CAPITAL LAST YEAR WOULD CONTINUE OVER THE SHORT TERM UNLIKE SOME OBSERVERS I AM NOT OVERLY CONCERNED ABOUT THE POSSIBLE IMPACT ON BANK EARNINGS SHOULD INTEREST RATES EVENTUALLY RISE HE SAID GREATER LOAN DEMAND AND THE HIGHER SPREADS ASSOCIATED WITH LOANS WILL HELP SUPPORT EARNINGS BUT HE WAS LESS OPTIMISTIC ABOUT LONGTERM PROSPECTS IN 1960 THE BANKING INDUSTRY ACCOUNTED FOR 40 OF THE NATION'S TOTAL FINANCIAL ASSETS COMPARED WITH 25 TODAY ACCORDING TO CARTER GOLEMBE CHAIRMAN OF THE SECURA GROUP A BANK CONSULTING FIRM MR GREENSPAN WARNED THAT THIS LONG SECULAR DECLINE RAISES QUESTIONS ABOUT THE FUTURE ROLE OF US BANKS IN THE OVERALL PROVISION OF FINANCIAL SERVICES NOT JUST LOANS THE FED CHAIRMAN BLAMED THE GLASSSTEAGALL ACT WHICH GENERALLY PREVENTS BANKS FROM DEALING IN SECURITIES AND OTHER ARTIFICIAL LEGAL BARRIERS TO BANK EXPANSION FOR THE INDUSTRY'S LOSS OF MARKET SHARE TO INVESTMENT BANKS FINANCE COMPANIES AND OTHER COMPETITORS TO THE EXTENT THAT UNNECESSARY LAWS AND REGULATIONS ARE RESPONSIBLE FOR THE DECLINE THE BANKING INDUSTRY IS LESS COMPETITIVE AND LESS EFFICIENT THAN IT SHOULD BE MR GREENSPAN SAID THE BUSH ADMINISTRATION TRIED UNSUCCESSFULLY TO ALLOW BANKS GREATER INVOLVEMENT IN THE SECURITIES AND INSURANCE BUSINESSES THE CLINTON ADMINISTRATION HASN'T TAKEN A POSITION ON THE COMPLEX AND POLITICALLY CHARGED ISSUE OF BANKING REFORM EUGENE LUDWIG HOWEVER HAS STRESSED THE NEED TO ADDRESS THE INDUSTRY'S DECLINING ECONOMIC ROLE HE ALSO REJECTS CONGRESSIONAL ARGUMENTS THAT GIVING BANKS BROADER POWERS TO UNDERWRITE SECURITIES OR SELL INSURANCE WOULD ONLY INCREASE THE RISKS TO THE BANKING SYSTEM THOUGH THE ADMINISTRATION DOESN'T PLAN TO PROPOSE LEGISLATION TO OVERHAUL THE BANKING SYSTEM THIS YEAR IT HAS VOWED TO PRESS FOR REGULATORY CHANGES TO SPUR LENDING IT IS EXPECTED SOON TO ANNOUNCE A PACKAGE OF COMMUNITY DEVELOPMENT INITIATIVES TO ENCOURAGE LENDING IN POOR URBAN AND RURAL AREAS 9305070143 930507 GERMAN GOVERNMENT'S PLAN TO PRIVATIZE PHONE MONOPOLY IS STUCK IN STALEMATE BY RICHARD L HUDSON AND AUDREY CHOI STAFF REPORTERS OF THE WALL STREET JOURNAL BONN THE BUNDESTAG GERMANY'S PARLIAMENT IS CAUGHT IN A STALEMATE OVER WHAT WOULD BE ONE OF THE WORLD'S BIGGEST PRIVATIZATIONS THE SALE OF A 49 STAKE IN THE STATE PHONE MONOPOLY THE PROPOSED PRIVATIZATION OF DEUTSCHE BUNDEPOST TELEKOM VALUED AT ABOUT 30 BILLION MARKS 19 BILLION WOULD BLAST OPEN THE 665 BILLIONMARK GERMAN PHONE MARKET AND COULD GIVE A BIG PUSH TO TELEPHONE PRIVATIZATION ACROSS EUROPE POLITICIANS ON BOTH SIDES OF THE DEBATE WHICH RESUMED LAST MONTH AGREE THAT A DECISION MUST BE REACHED BEFORE THE BUNDESTAG'S SUMMER RECESS JULY 3 OTHERWISE THERE WON'T BE ENOUGH TIME IN THE LEGISLATIVE CALENDAR TO PASS THE BILL BEFORE NEXT YEAR'S PARLIAMENTARY ELECTIONS THE DEBATE PITS BONN'S RULING CONSERVATIVE COALITION AGAINST THE OPPOSITION SOCIAL DEMOCRATIC PARTY AND ITS LABORUNION ALLIES THE GOVERNMENT WANTS TO FOLLOW THE EXAMPLE OF JAPAN BRITAIN MEXICO AND OTHERS IN PRIVATIZING THE STATE PHONE MONOPOLY ALTHOUGH THE DETAILS AREN'T FIXED JOACHIM KROESKE TELEKOM'S FINANCE DIRECTOR SAYS THE SALE COULD START IN EARLY 1996 WITH AN INITIAL GLOBAL ISSUE OF 10 BILLION TO 15 BILLION MARKS OF STOCK WITH PERHAPS ONETHIRD OF THE SHARES AVAILABLE FOR NONGERMAN INVESTORS THE SALE OF SHARES WOULD HELP PAY THE ANTICIPATED 60 BILLION MARKS IT WILL COST TO UPGRADE EASTERN GERMANY'S ANTIQUATED TELEPHONE SYSTEM BUT WILLI RUSS CHAIRMAN OF THE MAIN TELEKOM UNION DEUTSCHER POSTVERBAND SAYS A PRIVATE TELEKOM WOULD NEGLECT ITS DUTIES TO STRING PHONE LINES INTO THE REMOTE UNPROFITABLE HINTERLANDS OF GERMANY EMPLOYEES WOULD LOSE JOB SECURITY AND PAY WOULD FALL FOR MORE THAN 90 OF THE WORK FORCE AS TELEKOM WEANS THEM FROM GENEROUS CIVILSERVANT PAY SCALES THE STAKES IN THE DEBATE GO FAR BEYOND GERMANY HOWEVER WITH TELEKOM PRIVATIZED THE GERMAN TELECOMMUNICATIONS MARKET WOULD LIKELY BE WIDE OPEN TO FOREIGN COMPETITION RESOLVING A LONGSTANDING TRADE ISSUE BETWEEN BONN AND WASHINGTON CURRENTLY TELEKOM HAS A LEGAL MONOPOLY OVER MOST OF THE MARKET EXCEPT IN SPECIALIZED MOBILE COMMUNICATIONS SATELLITES AND DATACOMMUNICATIONS SERVICES MORE IMPORTANTLY EUROPEAN INDUSTRY ANALYSTS SAY THE GERMAN GOVERNMENT'S DECISION WILL DETERMINE THE FUTURE OF PHONEMARKET LIBERALIZATION FOR THE REST OF EUROPE LARGELY TO GIVE BONN TIME TO COMPLETE TELEKOM'S PRIVATIZATION IN 1996 THE EUROPEAN COMMUNITY RECENTLY REVISED ITS PROPOSED DEREGULATION SCHEDULE TO ELIMINATE AN INTERIM STEP THAT WAS SLATED FOR 1996 THE EC SET A DEADLINE OF 1998 FOR ALL EC TELEPHONE MONOPOLIES TO END FREEMARKET ADVOCATES FEAR DELAY OR CANCELLATION OF TELEKOM'S PRIVATIZATION WOULD MEAN THE DEMISE OF EVEN THAT PLAN TELEKOM IS THE THIRDBIGGEST TELECOMMUNICATIONSSERVICE CONCERN IN THE WORLD AFTER AMERICAN TELEPHONE & TELEGRAPH CO AND JAPAN'S NIPPON TELEGRAPH & TELEPHONE CO ITS REVENUE LAST YEAR AMOUNTED TO ABOUT 52 BILLION MARKS ITS PRETAX PROFIT WAS SEVEN BILLION MARKS ALTHOUGH BY LAW IT HAD TO HAND ALL OF IT OVER TO THE GOVERNMENT OR OTHER AGENCIES BUT TELEKOM'S SERVICES ARE EXPENSIVE DESPITE RECENT TARIFF CUTS IT CHARGES 345 MARKS FOR A THREEMINUTE CALL TO BRITAIN COMPARED WITH THE EQUIVALENT OF 242 TO 291 MARKS FOR A CALL GOING THE OTHER WAY OVER LINES OF BRITISH TELECOMMUNICATIONS PLC WE HAVE AN ORGANIZATION MORE LIKE A BUREAUCRACY THAN A REAL COMPANY ACKNOWLEDGES TELEKOM'S MR KROESKE WE HAVE CIVIL SERVANTS WITH LIFETIME EMPLOYMENT HIGH PENSIONS AND SALARIES THAT CORRESPOND TO LENGTH OF SERVICE AND HOW MANY CHILDREN AN EMPLOYEE HAS BUT THE STRONGEST ARGUMENT FOR PRIVATIZATION CONCERNS MODERNIZING EASTERN GERMANY'S PHONE NETWORK LAST YEAR TELEKOM INVESTED 11 BILLION MARKS IN THE EASTERN STATES MAKING IT THE BIGGEST SPENDER THERE OVER THE NEXT SEVEN YEARS TELEKOM'S INVESTMENTS EAST AND WEST WILL TOTAL 200 BILLION MARKS LAST YEAR TELEKOM WAS THE BIGGEST SINGLE BORROWER ON GERMAN CAPITAL MARKETS WITH RESULTING INTEREST CHARGES AND DEBT TOTALING ABOUT 100 BILLION MARKS ON SHAREHOLDER CAPITAL OF 35 BILLION MARKS WE NEED PRIVATE CAPITAL MR KROESKE SAYS THERE IS NO OTHER WAY TO BALANCE OUR FINANCIAL STRUCTURE BUT MR RUSS THE UNION CHAIRMAN SAYS THE MONEY SHOULD COME FROM THE GOVERNMENT NOT PRIVATE INVESTORS FOR DECADES TELEKOM'S OWNER THE FEDERAL REPUBLIC HAS MILKED TELEKOM LIKE A COW NOW THE COW IS A LITTLE THIN AND THE GOVERNMENT SHOULD HELP IT BY REINVESTING CASH THAT IT LEVIED FROM THE COMPANY IN PAST YEARS THE KEY TO THIS DEBATE IS HELD BY THE OPPOSITION SOCIAL DEMOCRATS OR SPD AND ITS RANKS ARE SPLIT BECAUSE THE PRIVATIZATION MEASURE REQUIRES A TWOTHIRDS VOTE THE SPD'S BACKING IS CRUCIAL BUT AT THE LAST TALKS WITH THE GOVERNMENT IN DECEMBER THE SPD'S PROUNION AND FREEMARKET WINGS CLASHED LEAVING THE PARTY WITHOUT A FIRM YES OR NO ON THE ISSUE WE HAVE TO FIND A POSITION THAT IS ACCEPTABLE TO THE GOVERNMENT COALITION AND THAT WON'T GET US BEAT UP BY THE UNION SAYS ARNE BOERNSEN AN SPD PARLIAMENT MEMBER WHO FAVORS PRIVATIZATION THE UNION AND ITS SPD ALLIES SUGGEST MAKING TELEKOM A PUBLIC INSTITUTION LIKE GERMANY'S CENTRAL BANK GERMAN BUSINESS LOBBYISTS A POTENT FORCE BEHIND THE PRIVATIZATION PUSH DISMISS THAT NOTION A PUBLIC INSTITUTION RUNS THE RISK OF BECOMING A RETIREMENT HOME FOR POLITICIANS SAYS WILHELM HUEBNER PRESIDENT OF THE GERMAN POST USERS ASSOCIATION COMPROMISE WOLFGANG BOETSCH GERMANY'S POST AND TELECOMMUNICATIONS MINISTER HAS SUGGESTED A COMPROMISE TO CREATE SOME FORM OF HOLDING COMPANY A ROOF ORGANIZATION HE CALLS IT THAT WOULD HOLD THE GOVERNMENT'S REMAINING 51 STAKE IN TELEKOM AND ITS SISTER ORGANIZATIONS THE POST OFFICE AND POSTAL BANK AND SUPERVISE THEIR PENSION AND BENEFIT FUNDS BUT TELEKOM ITSELF WOULD BE PRIVATE IF THE TALKS FAIL MR BOETSCH COULD ORDER TELEKOM TO SPIN OFF SOME OF ITS DIVISIONS INTO SEPARATE SUBSIDIARIES GIVING TELEKOM'S MANAGEMENT MORE FREEDOM TO ALTER EMPLOYMENT TERMS ON ITS OWN WITH LESS UNION CONTROL BY CONTRAST HE SUGGESTS IF THE UNION WORKS OUT A COMPROMISE WITH HIM NOW IT WILL HAVE MORE SAY IN TELEKOM'S FUTURE 9305070142 930507 SENATE GOP MODERATES LINK SUPPORT FOR HEALTH PLAN TO CLINTON TAX SHIFT BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REPUBLICAN MODERATES IN THE SENATE ARE PRESSING THE CLINTON ADMINISTRATION TO PARE THE TAXES IN ITS DEFICITREDUCTION PLAN AS A WAY TO BUILD BIPARTISAN SUPPORT FOR THE PRESIDENT'S AMBITIOUS HEALTHCARE INITIATIVES MEETING AT THE WHITE HOUSE THE SENATORS SUGGESTED THEY WOULD FIND IT EASIER TO SUPPORT THE HEALTH PROPOSALS IF PRESIDENT CLINTON FIRST CONSIDERS DEEPER SAVINGS FROM SOCALLED ENTITLEMENT PROGRAMS AS A SUBSTITUTE FOR TAXES IN HIS BUDGET PLAN YESTERDAY'S MEETING AT THE INVITATION OF THE PRESIDENT INCLUDED HOUSE AS WELL AS SENATE REPUBLICANS BUT THE MORE CRUCIAL BLOC CONSISTED OF THOSE MEMBERS OF THE SENATE FINANCE COMMITTEE WHICH WILL HAVE A LEADING ROLE IN THE DEFICITREDUCTION AND HEALTHCARE DEBATES THE SAME GOP MODERATES WERE CENTRAL TO BUILDING OPPOSITION TO THE PRESIDENT'S ECONOMICSTIMULUS BILL LAST MONTH AND WITHOUT DRAWING AN EXPLICIT QUID PRO QUO THEY APPEAR UNITED AGAIN IN TRYING TO USE THEIR LEVERAGE TO FORCE CONSIDERATION OF DEEPER SPENDING CUTS THE FINANCE COMMITTEE IS CHARGED UNDER THE BUDGET RESOLUTION WITH RAISING AN ESTIMATED 272 BILLION IN NEW REVENUES OVER THE NEXT FIVE YEARS WHILE TRIMMING 351 BILLION FROM PROJECTED MEDICARE COSTS OVER THE SAME PERIOD THOUGH NO FINAL DECISIONS HAVE BEEN MADE MR CLINTON'S HEALTH PLAN WILL REQUIRE PASSAGE OF TENS OF BILLIONS OF DOLLARS IN NEW TAXES AS WELL AND THIS HAS PROVOKED RESISTANCE FROM BUSINESS INTERESTS ALLIED WITH THE SAME REPUBLICANS WE SHOULD SEE THIS AS A TOTALITY SAID SEN JOHN DANFORTH OF MISSOURI AND ALTERING THE MIX OF SAVINGS VS TAXES IS A GOOD PLACE TO START MR DANFORTH'S COMMENTS WERE ECHOED IN INTERVIEWS WITH SENS DAVID DURENBERGER OF MINNESOTA AND JOHN CHAFEE OF RHODE ISLAND TWO FELLOW FINANCE COMMITTEE REPUBLICANS WHO ALSO MET WITH THE PRESIDENT AND ARE IMPORTANT TO THE ADMINISTRATION AFTER THE FILIBUSTER TACTICS OF THE STIMULUS BILL THIS MODERATE BLOC APPEARS EAGER TO SHOW ITS WILLINGNESS TO WORK WITH THE ADMINISTRATION BUT THE PROSPECT OF BACKTOBACK TAX INCREASES MAKES IT MORE DIFFICULT FOR THEM TO CLIMB ABOARD THE PRESIDENT WOULD BE MUCH BETTER OFF IN STEPPING BACK AND LOOKING AT THIS AS A WHOLE SAID SEN DURENBERGER WHILE RELUCTANT TO NAME SPECIFIC CUTS MR CHAFEE ARGUED TOO THAT SAVINGS COULD BE FOUND FROM THE ARRAY OF HEALTH AND BENEFIT PROGRAMS YOU'VE GOT THIS TREMENDOUS TAX BILL THAT SOPS UP SO MANY SOURCES OF REVENUE HE SAID WE'VE GOT TO LOOK AT HOW THIS AFFECTS THE WHOLE TAX STRUCTURE YESTERDAY'S WHITE HOUSE MEETING DOVETAILS WITH A LARGER STRATEGY BY THE ADMINISTRATION TO REACH OUT TO REPUBLICANS ON THE HEALTHCARE ISSUE HILLARY RODHAM CLINTON WHO HEADS THE HEALTH TASK FORCE HAS MADE A CONCERTED EFFORT TO GIVE HER CONSULTATIONS A BIPARTISAN FLAVOR AND HER SCHEDULE THIS WEEK INCLUDED MEETINGS WITH DEMOCRATS AND REPUBLICANS ON THE SENATE LABOR AND AGING COMMITTEES YOU CAN'T KNOCK AN EFFORT OF REACHING OUT SAID MR CHAFEE I DON'T THINK ANYONE CAN ACCUSE THEM OF NOT CONSULTING AS THEY DID ON THE STIMULUS BILL MRS CLINTON ALSO MET WITH LAWMAKERS AND MEMBERS OF GROUPS THAT SUPPORT A SOCALLED SINGLEPAYER HEALTH SYSTEM OF GOVERNMENTFINANCED NATIONAL HEALTH INSURANCE DURING THE SESSION PARTICIPANTS URGED THE ADMINISTRATION NOT TO GIVE LARGE COMPANIES THE OPTION OF PURCHASING HEALTH COVERAGE ON THEIR OWN INSTEAD OF THROUGH THE LARGE REGIONAL BUYING POOLS THAT THE WHITE HOUSE INTENDS TO SET UP FOR EMPLOYERS SELFEMPLOYED WORKERS AND UNEMPLOYED PEOPLE THEY SAID THEY FEARED A TWOTIER HEALTH SYSTEM WOULD RESULT THE FIRST LADY SAID A DECISION HADN'T BEEN MADE ON THE ISSUE ADMINISTRATION OFFICIALS HAVE BEEN TRYING TO REACH OUT TO SUPPORTERS OF A SINGLEPAYER ARRANGEMENT MOST OF WHOM ARE LIBERAL DEMOCRATS WHO HAVE BEEN CLAMORING FOR AN OVERHAUL OF THE HEALTH SYSTEM FOR SOME TIME MRS CLINTON WAS SAID TO BE THOUGHTFUL AND IMPRESSIVE DURING THE SESSION BUT SHE DIDN'T ENTIRELY WIN OVER HER AUDIENCE THERE WAS GOOD CHEMISTRY AND SOME PERSONAL TRUST BUILT UP SAID SEN PAUL WELLSTONE D MINN WHO ORGANIZED THE MEETING I THINK PEOPLE CAME AWAY THINKING THEY'D LIKE TO SUPPORT THIS BUT THEY FEEL VERY STRONGLY ABOUT SOME THINGS AND THEY'RE GOING TO KEEP PUSHING THIS IS NOT THE TIME TO FOLD THE TENT HILARY STOUT CONTRIBUTED TO THIS ARTICLE 9305070141 930507 SITHE ENERGIES PLANS PUBLIC OFFERING AS PROPOSED PLANT FACES OPPOSITION BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INDEPENDENT POWER PRODUCER SITHE ENERGIES INC HOPES TO RAISE 161 MILLION THROUGH AN INITIAL PUBLIC OFFERING BUT COMPETITORS ARE TRYING TO QUASH ITS MOST IMPORTANT PROJECT AS AN INDEPENDENT POWER PRODUCER SITHE GENERATES ELECTRICITY THROUGH 21 PROJECTS AND SELLS THE POWER PRIMARILY TO ELECTRIC UTILITIES BUT THE KEY TO ITS FUTURE IS ITS LARGEST PLANT BY FAR THE 1000MEGAWATT INDEPENDENCE PROJECT UNDER CONSTRUCTION NEAR OSWEGO NY TO SERVE AN ALCAN ALUMINIUM LTD ROLLING MILL LIKE MANY OF ITS SMALLER POWER PLANTS THE INDEPENDENCE STATION WILL BE A COGENERATION FACILITY A NATURAL GASFIRED GENERATION PLANT WILL PRODUCE ELECTRICITY AND LEFTOVER HEAT WILL BE USED TO PROVIDE STEAM AND OTHER ENERGY TO THE INDUSTRIAL PLANT THE PROJECT NEAR LAKE ONTARIO WOULD REPRESENT HALF OF SITHE'S REVENUE BASE THE 883 MILLION PLANT MOSTLY FINANCED THROUGH A 717 MILLION BOND SALE PROPOSES TO PROVIDE MORE THAN 730 MEGAWATTS OF ELECTRICITY TO CONSOLIDATED EDISON CO OF NEW YORK ANOTHER 40 MEGAWATTS TO ALCAN ROLLED PRODUCTS CO AND 230 MEGAWATTS TO BE SOLD AT COST TO NIAGARA MOHAWK POWER CORP SYRACUSE NY THE POWER PURCHASE AGREEMENTS ILLUSTRATE THE TENSIONS IN THE ELECTRICITY MARKET IN ORDER TO RESERVE THE 730 MEGAWATTS OF ELECTRICITY AT THE SITHE PROJECT OVER THE LIFE OF ITS 40YEAR CONTRACT CONSOLIDATED EDISON MUST PAY A CHARGE ABOVE THE ESTABLISHED ELECTRICITY RATE THAT RATE CURRENTLY IS ABOUT 35 CENTS A KILOWATTHOUR MEANWHILE NIAGARA MOHAWK ALREADY WITH EXCESS CAPACITY IS FORCED BY FEDERAL REGULATIONS TO PURCHASE ITS 230 MEGAWATTS FROM SITHE AND AT MINIMUM REGULATED PRICES AND SITHE COULD TERMINATE THE NIAGARA MOHAWK DEAL WITH 30 DAYS' NOTICE BECAUSE ALCAN IS CURRENTLY A NIAGARA MOHAWK CUSTOMER THE UTILITY HAS FILED A PETITION WITH NEW YORK STATE REGULATORS CLAIMING THAT SITHE HAS NO LEGAL RIGHT TO TAKE OVER ITS CUSTOMER ALCAN MEANWHILE INSISTS THAT IT NEEDS THE ATTRACTIVELY PRICED SITHE PURCHASE AGREEMENT TO KEEP 800 EMPLOYEES AT THE SITE IT SAYS NIAGARA MOHAWK'S ELECTRICITY HAS BECOME TOO EXPENSIVE NIAGARA MOHAWK CONSIDERS THE SALE TO ALCAN ILLEGAL AND SAYS THAT ONLY A REGULATED UTILITY SHOULD BE PERMITTED TO PERFORM SUCH A RETAILING OPERATION SITHE CALLS NIAGARA MOHAWK'S PETITION LUDICROUS AND SAYS IT EXPECTS REGULATORS TO REFUSE TO EVEN HEAR THE ELECTRIC UTILITY'S COMPLAINTS EVEN IF SITHE EMERGES UNSCATHED FROM THE NIAGARA MOHAWK ASSAULT OTHER RISKS FACE THE INDEPENDENCE PROJECT THE FILING FOR THE PUBLIC OFFERING WARNS OF POSSIBLE UNEXPECTED CONSTRUCTION DIFFICULTIES DELAYS AND INCREASED COSTS ON THE OTHER HAND SITHE APPEARS TO HAVE CONSIDERABLE BACKING FROM ITS CHIEF INVESTOR CIE GENERALE DES EAUX A FRENCH WATER DISTRIBUTION COMPANY BANKERS FAMILIAR WITH THE PROJECT SAY GENERALE DES EAUX HAS COVERED PAYMENTS FOR SITHE AT TIMES WHEN THE COMPANY WAS HAMPERED BY DROUGHT AT SOME OF ITS WESTERN HYDROELECTRIC PROJECTS TWO LARGER INDEPENDENTS DESTEC ENERGY INC HOUSTON AND AES CORP ARLINGTON VA HAVE HAD MIXED RESPONSE SINCE GOING PUBLIC AES FIRST OFFERED AT 19 IN JUNE 1991 NOW TRADES IN THE LOW 30S THE COMPANY PROJECTS RETURNS BETWEEN 13 AND 17 THROUGH 1997 AS OVERSEAS OPPORTUNITIES EXPAND DESTEC HOWEVER HAS DROPPED BELOW ITS MARCH 1991 INITIAL OFFERING PRICE OF 20 A SHARE CLOSING YESTERDAY AT 15375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING I DON'T THINK THERE'S AN ATMOSPHERE OF WILD ENTHUSIASM FOR THE INDEPENDENTS RIGHT NOW BUT THOSE WHO FOLLOW THE INDUSTRY BELIEVE THERE'S A GOOD LONGTERM FUTURE FOR IT SAYS JOHN P ROSENTHAL SENIOR VICE PRESIDENT AT BURNHAM SECURITIES BUT THIS IS PROBABLY AS GOOD A TIME AS ANY FOR SITHE IN THE NEXT FEW YEARS ONLY THE BIGGER BETTERCAPITALIZED COMPANIES WILL BE LEFT IN THE BUSINESS CURRENTLY INDEPENDENT POWER PRODUCERS PROVIDE ABOUT 7 OF THE INSTALLED ELECTRIC CAPACITY IN THE US BUT HAVE INSTALLED ABOUT HALF OF THE NEW POWER CAPACITY IN THE PAST THREE YEARS BUT SITHE'S CENTRAL PROJECT THE INDEPENDENCE STATION HAS HAD PROBLEMS EVEN BEFORE THE FIRST WATT HAS BEEN PRODUCED ACCORDING TO ITS FILING EARLIER THIS YEAR SITHE INADVERTENTLY MISSED A 2 MILLION REFUNDABLE DEPOSIT PAYMENT TO CONSOLIDATED EDISON WHICH WAS MEANT TO OFFER ASSURANCE THAT SITHE'S CONTRUCTION PLANS WERE VIABLE THE BOOKKEEPING ERROR WAS QUICKLY RECTIFIED BUT CONSOLIDATED EDISON USED THE CONTRACTUAL ERROR TO THREATEN TERMINATION OF ITS AGREEMENT WITH SITHE FORCING THE INDEPENDENT BACK TO THE NEGOTIATING TABLE AMONG CONSOLIDATED EDISON'S GAINS ADDITIONAL RIGHTS TO REFUSE CERTAIN AMOUNTS OF ENERGY PURCHASES DESPITE RECENT TRIBULATIONS SOME ANALYSTS BELIEVE SITHE'S POLITICAL BACKING FROM NEW YORK GOV MARIO CUOMO'S OFFICE COMBINED WITH THE BACKING OF GENERALE DES EAUX PROVIDES STRONG ASSURANCE THAT THE INDEPENDENCE PROJECT WILL BE COMPLETED IN ITS FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE INDEPENDENT POWER PRODUCER AND DEVELOPER SAID IT PLANS TO OFFER 12 MILLION SHARES OR ABOUT 20 OF THE COMPANY TO NEW INVESTORS AT ABOUT 16 A SHARE FOLLOWING THE OFFERING 532 MILLION SHARES WOULD BE OUTSTANDING SITHE PLANS TO USE THE NET PROCEEDS TO RETIRE MOST OF THE DEBT OWED TO GENERALE DES EAUX THE OFFERING WILL REDUCE CIE GENERALE DES EAUX HOLDINGS IN SITHE TO 60 DOWN FROM 76 AS PART OF THE OFFERING WILLIAM KRIEGEL CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT AND PARIS MOURATOGLOU ONE OF THE COMPANY'S ORIGINAL INVESTORS WILL SELL 600000 SHARES EACH AT THE 16ASHARE OFFERING PRICE EACH MAN WOULD RECEIVE 96 MILLION MESSRS MOURATOGLOU AND KRIEGEL PAID AN AVERAGE 119 A SHARE FOR THEIR STAKE ACCORDING TO THE FILING FOLLOWING THE OFFERING MESSRS KRIEGEL AND MOURATOGLOU EACH WILL OWN 4449000 SHARES BUT MR KREIGEL WILL HAVE THE VOTING POWER OF THE COMBINED SHARES ACCORDING TO THE FILING AFTER LOSING MONEY IN 1988 AND 1989 SITHE HAS REPORTED NET INCOME IN EACH OF THE LAST THREE YEARS IN 1992 THE COMPANY HAD ITS STRONGEST YEAR WITH EARNINGS OF 216 MILLION OR 49 CENTS A SHARE ON REVENUE OF 2334 MILLION BUT MUCH OF THE YEAR'S PROFIT CAME ON AN ACCOUNTING CHANGE FOR INCOME TAX REPORTING WITHOUT THE CHANGE SITHE WOULD HAVE REPORTED NET OF 18 MILLION OR 4 CENTS A SHARE COMPARED WITH NET OF 129 MILLION IN 1991 9305070140 930507 WHO'S NEWS PAGING NETWORK INC PAGING NETWORK INC DALLAS STEVEN P DUSSEK 36 YEARS OLD PRESIDENT OF THIS PAGING CONCERN'S SOUTHERN REGION WAS NAMED SENIOR VICE PRESIDENT IN CHARGE OF PAGING OPERATIONS MARKETING AND TECHNICAL DEVELOPMENT HE WILL ASSUME THE DUTIES OF PHILLIP J SCOTT 45 EXECUTIVE VICE PRESIDENT AND A BOARD MEMBER WHO THE COMPANY SAID RESIGNED TO PURSUE OTHER OPPORTUNITIES A SPOKESWOMAN SAID THE VACANCY ON THE EIGHTMEMBER BOARD WON'T IMMEDIATELY BE FILLED 9305070139 930507 INTERNATIONAL WORLD ECONOMY EBRD BETTER GET ITS HOUSE IN ORDER OR US MIGHT WITHHOLD ITS FUNDING BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE THAT JACQUES BUILT IS IN TROUBLE AND SO IS JACQUES THE HOUSE IS THE GRANDIOSE EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT AND JACQUES IS ITS IMMODEST PRESIDENT JACQUES ATTALI WHOSE FREESPENDING WAYS STRIKE THE BANK'S GOVERNMENT OWNERS ESPECIALLY THE US AS EXCESSIVE AMONG OTHER THINGS HE USED ABOUT 2 MILLION TO LINE THE BANK'S LONDON LOBBY WITH ONE KIND OF COSTLY MARBLE ONLY TO REPLACE IT WITH ANOTHER WHEN HE DIDN'T LIKE ITS LOOKS AN ADDITIONAL 900000 WAS USED TO CHARTER AIRCRAFT FOR HIS FLYING CONVENIENCE THE BANK HAVING BEEN PILLORIED IN LONDON AND BONN NOW FACES SERIOUS DIFFICULTIES IN WASHINGTON THE US PROMISED TO PROVIDE 350 MILLION OF CAPITAL FOR THE EBRD AND THE CLINTON ADMINISTRATION PLANNED TO SEND THE FIRST 70 MILLION THIS YEAR BUT A SENATE APPROPRIATIONS SUBCOMMITTEE ANGRY ABOUT BANK SPENDING AND INVESTMENT POLICIES HAS YANKED THE MONEY FROM A FUNDING BILL AND THE ADMINISTRATION HAS STOPPED ASKING WITHOUT US BACKING THE BANK CAN CONTINUE BUT ONLY WITH GRAVE CREDIBILITY PROBLEMS MR ATTALI PLANS A TRIP TO WASHINGTON NEXT WEEK AND CAN TAKE THE MEASURE OF HOW MUCH TROUBLE HE AND HIS BANK ARE IN CRITICS SAY NOT QUITE FAIRLY THAT THE EBRD HAS SPENT TWICE AS MUCH ON ITSELF AS ON THE FRAGILE FORMER COMMUNIST ECONOMIES IT WAS CREATED TO HELP ANY NEWLY LAUNCHED INSTITUTION SPENDS A LOT ON ITSELF IN THE FIRST TWO YEARS OF EXISTENCE BUT THE BANK'S REAL PROBLEMS RAISE BASIC QUESTIONS ABOUT ITS FUTURE THE CRITICS ALSO QUESTION HOW LONG MR ATTALI SHOULD REMAIN ITS LEADER ESPECIALLY AFTER HIS CONFIDANT AND PROTECTOR FRENCH PRESIDENT FRANCOIS MITTERRAND LEAVES OFFICE I'D LIKE TO KNOW REALLY WHY WE SHOULD ENTRUST ANOTHER DIME OF THE PUBLIC'S MONEY TO MR ATTALI DEMANDS SEN PATRICK LEAHY THE SUBCOMMITTEE CHAIRMAN I WILL NOT VOTE FOR ONE CENT TO THE EBRD UNLESS I SEE A VERY VERY SUBSTANTIAL MOVEMENT TOWARD REFORM AND FRANKLY I DON'T THINK I'M GOING TO CONGRESSMAN DAVID OBEY CHAIRMAN OF A HOUSE SUBCOMMITTEE WITH SIMILAR OVERSIGHT DUTIES AGREES MY OBJECTIONS ARE FUNDAMENTAL ENOUGH TO GUARANTEE THEY'RE NOT GOING TO GET ANY MONEY OUT OF THE US THIS YEAR HE SAYS THE ARROGANT EBRD NEEDS A CHANGE OF CONDUCT OF HABIT OF MINDSET POLITICAL OUTRAGE ON CAPITOL HILL SOMETIMES DOESN'T OUTLAST A HELPFUL HEADLINE BUT NOT THIS TIME BOTH THE ADMINISTRATION AND CONGRESS INSIST THE BANK'S STYLE AND SUBSTANCE MUST CHANGE FUNDAMENTALLY BEFORE AMERICAN SUPPORT CAN RESUME IT HAS SOME VERY TOUGH HURDLES TO CROSS WARNS LAWRENCE SUMMERS TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS THE EBRD WAS MR ATTALI'S IDEA AND FRENCH LOBBYING HELPED OVERCOME US HESITATIONS ITS INITIAL GOAL WAS TO HELP SIX CENTRAL EUROPEAN NATIONS AS THEY EMERGED FROM SOVIET DOMINATION IT HAS SINCE ADDED THE FORMER SOVIET UNION ITSELF AND NOW SERVES 24 POSTCOMMUNIST COUNTRIES A 1990 DEAL GAVE LONDON THE HEADQUARTERS AND MR MITTERRAND THE RIGHT TO NAME HIS CHIEF AIDE AS PRESIDENT THE US AT 10 IS THE BIGGEST SHAREHOLDER THE UNITED KINGDOM AND GERMANY HAVE 85 EACH AND JOINED ONLY AFTER WINNING CONCESSIONS SUCH AS A RULE REQUIRING THAT 60 OF LENDING GO TO PRIVATE COMPANIES MORE EXTENSIVE OVERHAUL NOW SEEMS MANDATORY A SPECIAL AUDIT SOON WILL CALL FOR TOUGHER FINANCIAL CONTROLS ON BANK OVERHEAD AND OPERATING COSTS AND THE US WANTS BASIC OPERATIONAL CHANGES FOR EXAMPLE ROGER ALTMAN TREASURY DEPUTY SECRETARY TOLD HIS FELLOW EBRD GOVERNORS THAT IT MUST START OBEYING THE 60 RULE AND CHOOSE A COHERENT INVESTMENT STRATEGY RATHER THAN MAKE COMMITMENTS SOMEWHAT RANDOMLY IT SHOULD FOCUS ON SPECIFIC SECTORS OR REGIONS HE SAYS THE CLINTON ADMINISTRATION CONTENDS THE BANK PROPERLY RUN CAN BE USEFUL FOR EXAMPLE IT COULD LURE WARY FOREIGNERS INTO JOINT VENTURES IN RISKY PLACES SUCH AS BULGARIA KAZAKHSTAN AND ROMANIA AND IT COULD HELP LOCAL CAPITALISTS GET PROJECTS LAUNCHED THUS WASHINGTON WANTS IT TO BACK A 300 MILLION FUND FOR SMALL PRIVATE ENTERPRISE IN RUSSIA AS PART OF THE BROADER WESTERN AID EFFORT THERE EBRD EXECUTIVES AGREE OUR JOB IS TO BE A LITTLE BIT AHEAD OF THE PRIVATE SECTOR SAYS RONALD FREEMAN A FORMER WALL STREETER WHO IS FIRST VICE PRESIDENT BUT SEN MITCH MCCONNELL A REPUBLICAN WHO GENERALLY SUPPORTS MULTINATIONAL LENDERS WONDERS IF THE US SHOULD ABANDON THIS ONE AS NOT WORTH THE PRICE AT MINIMUM IT IS CLEAR NEITHER CONGRESS NOR CLINTON OFFICIALS WILL CAMPAIGN FOR IT UNLESS SWEEPING REFORMS COME FIRST LOSING US SUPPORT SAYS DAVID ROCHE OF MORGAN STANLEY INTERNATIONAL IN LONDON WOULD CAST A PALL AND RAISE THE EBRD'S BORROWING COSTS IN SKEPTICAL MONEY MARKETS WITHOUT US BACKING JACQUES ATTALI'S BRAINCHILD WOULD FACE THE MOST BASIC QUESTIONS ABOUT ITS NEED TO SURVIVE EVEN WITHOUT HIM 9305070138 930507 WHO'S NEWS SYMIX SYSTEMS INC SYMIX SYSTEMS INC COLUMBUS OHIO GREGORY MILLER SENIOR VICE PRESIDENT OF OPERATIONS RESIGNED TO PURSUE PERSONAL AND ENTREPRENEURIAL INTERESTS WHILE FRANK TEDESCO WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT SALES AND MARKETING THE MAKER OF SOFTWARE FOR MANUFACTURING AND FINANCIAL CONTROL SAID MR MILLER 37 YEARS OLD WILL STAY ON FOR A TRANSITIONAL PERIOD AFTER WHICH OTHER SENIOR MANAGERS WILL ASSUME HIS RESPONSIBILITIES MR TEDESCO WAS FORMERLY IN THE MANUFACTURING APPLICATIONS BUSINESS OF D&B SOFTWARE AN ATLANTABASED SUBSIDIARY OF DUN & BRADSTREET CORP WHERE HE WORKED FOR NINE YEARS 9305070137 930507 LION NATHAN PLANS TO EXPAND OUTSIDE PACIFIC REGION SPECIAL TO THE WALL STREET JOURNAL AUCKLAND NEW ZEALAND LION NATHAN LTD A NEW ZEALANDBASED BREWING AND SOFT DRINKS CONCERN IS LOOKING TO EXPAND ITS OPERATIONS OUTSIDE OF THE PACIFIC REGION AND AMONG OTHER OPTIONS IS CONSIDERING FORMING A JOINT VENTURE TO BREW BEER IN CHINA CHAIRMAN DOUGLAS MYERS AT A NEWS CONFERENCE WEDNESDAY SAID THE COMPANY IS CONSIDERING VARIOUS VENTURES WITH ESTABLISHED BEER BREWERS IN CHINA WITHIN THE NEXT TWO TO THREE YEARS MR MYERS SAID OPERATIONS IN CHINA AND SIMILAR DEVELOPING COUNTRIES ARE BECOMING INCREASINGLY ATTRACTIVE BECAUSE OF DECLINING OR STATIC BEER CONSUMPTION RATES IN LION'S TRADITIONAL MARKETS OF AUSTRALIA AND NEW ZEALAND THE CHAIRMAN SAID LION NATHAN HAS HAD DISCUSSIONS WITH VARIOUS SOCALLED OFFCHINA INVESTORS INCLUDING CHINESE EXPATRIATES NOW LIVING IN TAIWAN MALAYSIA AND HONG KONG TO HELP FUND A JOINT VENTURE LION NATHAN HAS EXTENSIVE BREWING OPERATIONS IN AUSTRALIA AND NEW ZEALAND BUT ITS OPERATIONS OUTSIDE OF THESE COUNTRIES SO FAR EXTEND ONLY TO SALES NOT PRODUCTION HOWEVER THE COMPANY EARLIER THIS WEEK ANNOUNCED THE FORMATION OF A JOINT VENTURE WITH COORS BREWING CO A UNIT OF ADOLPH COORS CO OF GOLDEN COLO TO PRODUCE BEER AT COORS'S BREWERY IN MEMPHIS BEGINNING IN SEPTEMBER WE ARE THE PREEMINENT BREWER IN OUR REGION AND ARE LOOKING TO MOVE OUTSIDE OF AUSTRALASIA MR MYERS SAID WEDNESDAY COORS IS THE FIRST INDICATION OF THAT THE US JOINT VENTURE WILL INITIALLY PRODUCE A BRAND OF BEER FROM LION NATHAN'S AUSTRALIAN STABLE OF BREWERIES THE BEER CALLED CASTLEMAINE XXXX IS ONE OF A NUMBER OF AUSTRALIAN BRANDS ACQUIRED BY LION NATHAN LAST YEAR AFTER BUYING THE 50 IT DIDN'T ALREADY OWN OF NATIONAL BREWING HOLDINGS LTD WHICH IS AUSTRALIA'S SECONDLARGEST CHAIN OF BREWERIES BEHIND FOSTERS BREWING GROUP LTD AND WHICH HAS SINCE BEEN RENAMED LION NATHAN AUSTRALIA LTD THE AUSTRALIAN OPERATIONS ARE LARGELY RESPONSIBLE FOR LION NATHAN TUESDAY REPORTING A 90 INCREASE IN OPERATING PROFIT AFTER TAX TO 874 MILLION NEW ZEALAND DOLLARS US476 MILLION IN ITS FISCAL FIRST HALF ENDED FEB 28 COMPARED WITH NZ46 MILLION IN THE YEAREARLIER PERIOD OPERATING PROFIT BEFORE TAX FROM THE AUSTRALIAN OPERATIONS WAS NZ1463 MILLION IN THE LATEST PERIOD UP FROM NZ416 MILLION IN THE YEAREARLIER PERIOD WHEN LION NATHAN OWNED JUST HALF OF THE THEN NATIONAL BREWING HOLDINGS THE COMPANY'S TERM LIABILITIES FELL TO NZ139 BILLION ON FEB 28 FROM NZ206 BILLION AT AUG 31 AS WELL AS BREWING OPERATIONS LION NATHAN HAS AN 83 SHARE IN A JOINT VENTURE WITH PESPICO INC OF THE US TO PRODUCE AND MARKET SOFT DRINKS IN NEW ZEALAND AND AUSTRALIA LION IS DISCUSSING WITH PEPSICO THE POSSIBILITY OF FORMING JOINT VENTURES TO MARKET AND PRODUCE THE US COMPANY'S PRODUCTS IN OTHER COUNTRIES 9305070136 930507 BOW VALLEY NAME CHANGE CALGARY ALBERTA BOW VALLEY INDUSTRIES LTD SAID SHAREHOLDERS APPROVED A CHANGE IN THE COMPANY'S NAME TO BOW VALLEY ENERGY INC BOW VALLEY IS AN OIL AND GAS CONCERN 9305070135 930507 ABREAST OF THE MARKET STOCKS END MIXED AMID WORRIES ABOUT BOSNIA TODAY'S JOBS DATA BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED MIXED AS JITTERS ABOUT STEPPEDUP TENSIONS IN BOSNIA COMBINED WITH NERVOUSNESS OVER TODAY'S EMPLOYMENT REPORT THE DOW JONES INDUSTRIAL AVERAGE LOST 720 POINTS OR 021 TO 344190 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX SLID 126 OR 028 TO 44326 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 050 TO 24522 ON THE BIG BOARD 254370000 SHARES CHANGED HANDS DOWN FROM 270960000 SHARES WEDNESDAY DECLINING ISSUES EDGED PAST ADVANCERS 943 TO 940 MEANWHILE ON THE AMERICAN STOCK EXCHANGE THE MARKET VALUE INDEX ROSE 106 POINTS TO 42695 ITS THIRD STRAIGHT RECORD IN THE ABSENCE OF FURTHER DECLINES IN INTEREST RATES ANALYSTS SAID MANY INVESTORS ACTED CAUTIOUSLY YESTERDAY WAITING FOR TODAY'S APRIL EMPLOYMENT REPORT BEFORE MAKING BIG BETS ON THE MARKET THE LABOR DEPARTMENT REPORT WILL HELP DETERMINE WHETHER INTEREST RATES CAN FALL MUCH FURTHER OR ARE LIKELY TO REMAIN AT CURRENT LEVELS IN ADDITION INVESTORS WORRIED THAT THE SERBS' REJECTION OF A PLAN TO END THE BOSNIAN WAR MIGHT LEAD TO INCREASED TENSIONS IN THE REGION STEFAN ABRAMS DIRECTOR OF EQUITY STRATEGY AT TRUST CO OF THE WEST IN LOS ANGELES SAID THAT INVESTORS ARE STILL SHIFTING FROM CONSUMER STOCKS AND MOVING INTO ECONOMICALLY SENSITIVE SECTORS OF THE MARKET THE STRUGGLE THAT HAS KEPT THE MARKET FLAT IN THE AGGREGATE IS THE STRUGGLE BETWEEN DEFENSIVE GROWTH COMPANIES AND ECONOMICALLY SENSITIVE INDUSTRIAL TECHNOLOGY AND ENERGY STOCKS SAID MR ABRAMS YESTERDAY FOR INSTANCE INVESTORS BATTERED DRUG STOCKS PFIZER TUMBLED 1 1/4 TO 69 1/4 BRISTOLMYERS SQUIBB DROPPED 1 TO 60 MERCK SLIPPED 3/4 TO 37 1/2 AND SCHERINGPLOUGH LOST 1/2 TO 66 3/4 ALSO HURT WERE OTHER CONSUMER STOCKS GILLETTE FELL 1 1/4 TO 52 1/2 AND PROCTER & GAMBLE SLUMPED 1 1/8 TO 48 BUT SOME ECONOMICALLY SENSITIVE STOCKS PERKED UP GENERAL ELECTRIC JUMPED 1 1/4 TO 93 1/2 MINNESOTA MINING & MANUFACTURING ADDED 1 1/4 TO 114 3/8 AND STORAGE TECHNOLOGY RALLIED 2 5/8 TO 34 7/8 LEHMAN BROTHERS RAISED ITS INVESTMENT RATING ON STORAGE TECHNOLOGY TO BUY FROM NEUTRAL MANY RETAIL STOCKS ADVANCED ON REPORTS OF BETTER THAN EXPECTED SALES IN ADDITION PRUDENTIAL SECURITIES ANALYST L WAYNE HOOD UPGRADED HIS OPINION ON NINE RETAIL STOCKS TO BUY FROM HOLD CARTER HAWLEY HALE STORES ADDED 3/4 TO 13 5/8 ITS SAMESTORE SALES OR SALES IN STORES OPEN MORE THAN A YEAR ROSE 146 FOR THE FOUR WEEKS ENDED MAY 1 MAY DEPARTMENT STORES GANED 1 TO 73 7/8 AFTER REPORTING A 1 RISE IN SAMESTORE SALES FOR THE SAME PERIOD GAP SHOT UP 2 1/4 TO 32 1/2 ON A 12 INCREASE IN TOTAL APRIL SALES JC PENNEY INCHED UP 1/2 TO 43 3/8 AND DILLARD DEPARTMENT STORES CLASS A SHARES CLIMBED 1/2 TO 39 1/4 BUT SEARS ROEBUCK EASED 1/8 TO 53 3/8 AND WALMART STORES SLIPPED 1/8 TO 26 5/8 DESPITE REPORTING GAINS IN APRIL SAMESTORE SALES WOOLWORTH SLID 2 TO 29 3/8 AFTER THE RETAILER TOLD INVESTORS THAT IT EXPECTS THAT ITS FIRSTQUARTER EARNINGS WILL BE CONSIDERABLY BELOW THEIR YEAREARLIER LEVEL AND PIER 1 IMPORTS LOST 1 1/4 TO 9 5/8 THE COMPANY SAID IT ESTIMATES FIRSTQUARTER EARNINGS TO BE 14 CENTS TO 16 CENTS A SHARE COMPARED WITH 18 CENTS IN THE YEAREARLIER PERIOD BORDEN PLUNGED 1 3/8 TO 21 7/8 IN HEAVY TRADING TWO BLOCKS OF STOCK WERE TRADED BY DONALDSON LUFKIN & JENRETTE SECURITIES BUT THE INVESTMENT BANK WOULDN'T IDENTIFY THE BUYERS OR SELLERS OF THE SHARES A SPOKESMAN FOR BORDEN SAID THE NEW YORK FOOD COMPANY WASN'T AWARE OF ANY REASON FOR ACTIVITY IN ITS STOCK OGDEN PROJECTS ROCKETED 2 1/8 TO 19 1/2 MORGAN STANLEY RAISED ITS INVESTMENT OPINION ON THE COMPANY TO BUY FROM HOLD CITING THE COMPANY'S STRONG US BACKLOG AND THE STOCK'S LOW PRICE ON WEDNESDAY OGDEN PROJECTS WHICH BUILDS AND OPERATES WASTETOENERGY PLANTS REPORTED NET INCOME OF 22 CENTS A SHARE FOR THE FIRST QUARTER COMPARED WITH 143 A SHARE A YEAR EARLIER LAST YEAR'S PROFIT WAS SWOLLEN BY A 116 A SHARE ACCOUNTINGRELATED GAIN BRITISH PETROLEUM BOUNCED UP 1 3/4 TO 58 5/8 THE ENERGY COMPANY REPORTED BETTER THAN EXPECTED FIRSTQUARTER PROFIT 9305070134 930507 NATIONSBANK CORP SEEKS FED APPROVAL TO UNDERWRITE CORPORATE DEBT EQUITY BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL NATIONSBANK CORP IN A MOVE THAT WOULD SIGNIFICANTLY EXPAND ITS UNDERWRITING BUSINESS IS SEEKING APPROVAL FROM THE FEDERAL RESERVE BOARD TO UNDERWRITE CORPORATE DEBT AND EQUITY SECURITIES THE BANKING GIANT BASED IN CHARLOTTE NC SAID IT EXPECTS TO RECEIVE APPROVAL IN THE THIRD QUARTER TO BEGIN UNDERWRITING CORPORATE DEBT APPROVAL FOR UNDERWRITING CORPORATE EQUITY WOULD THEN LIKELY COME 18 MONTHS TO TWO YEARS LATER NATIONSBANK SAID WHILE BANKHOLDING COMPANIES GENERALLY ARE PROHIBITED FROM UNDERWRITING ACTIVITIES BY THE GLASSSTEAGALL ACT THEY CAN CONDUCT A LIMITED AMOUNT OF SUCH BUSINESS THROUGH SECTION 20 SUBSIDIARIES THAT BUSINESS CANNOT CONSTITUTE MORE THAN 10 OF THE HOLDING COMPANY'S REVENUE NATIONSBANK WHICH WITH ASSETS OF 121 BILLION IS THE NATION'S FOURTHLARGEST BANK WOULD JOIN A SELECT GROUP OF DOMESTIC BANKS WITH SUCH UNDERWRITING POWERS AND THE ONLY ONE BASED IN THE SOUTH THE AGGRESSIVE COMPANY WOULD BECOME THE THIRD MAJOR DOMESTIC BANK AFTER JP MORGAN & CO AND BANKERS TRUST NEW YORK CORP TO HAVE AUTHORITY TO UNDERWRITE BOTH CORPORATE DEBT AND EQUITY DAUPHIN DEPOSIT CORP A 46 BILLIONASSET INSTITUTION IN HARRISBURG PA ALSO HAS SUCH AUTHORITY ALTHOUGH IT CONDUCTS SUCH BUSINESS ONLY A MODEST SCALE CURRENTLY 10 BANKHOLDING COMPANIES OPERATING IN THE US CAN UNDERWRITE CORPORATE DEBT SIX ARE FOREIGNOWNED NATIONSBANK FILED ITS APPLICATION WITH THE FEDERAL RESERVE ON APRIL 13 IT SAYS THE MOVE IS A NATURAL EXPANSION OF ITS UNDERWRITING ACTIVITIES AND IS DRIVEN BY CUSTOMER DEMAND IT IS QUITE ACTIVE THROUGH ITS SECTION 20 SUBSIDIARY NATIONSBANC CAPITAL MARKETS INC IN UNDERWRITING COMMERCIAL PAPER MUNICIPAL REVENUE BONDS MORTGAGEBACKED SECURITIES AND ASSETBACKED SECURITIES OUR CORPORATE AND INSTITUTIONALCUSTOMER BASE IN THE LAST 18 MONTHS HAS GOTTEN MUCH MORE EXTENSIVE AND THOSE CUSTOMERS EXPECT US TO MEET THEIR UNDERWRITING NEEDS SAID RALEIGH HORTENSTINE EXECUTIVE VICE PRESIDENT OF GLOBAL TRADING AND DISTRIBUTION FOR NATIONSBANK NATIONSBANK SAID IT EXPECTS TO FOCUS PRIMARILY ON SERVING CUSTOMERS IN ITS GEOGRAPHIC REGION EIGHT MIDATLANTIC AND SOUTHEAST STATES TEXAS AND THE DISTRICT OF COLUMBIA BUT ALSO WILL DO BUSINESS IN THE REST OF THE COUNTRY THE BANK IS CONFIDENT ENOUGH OF THE APPROVAL THAT IT HAS BEGUN LINING UP STAFF IT RECENTLY TAPPED JOHN GRIFF WHO WAS MANAGING DIRECTOR AND GLOBAL HEAD OF DEBT SYNDICATE AT LEHMAN BROTHERS INC TO BE THE MANAGING DIRECTOR OF NATIONSBANC CAPITAL MARKETS AND HEAD OF THE NEWLY FORMED DEBT CAPITAL MARKETS GROUP NATIONSBANK HAS ALSO RAIDED THE RETAILBUSINESS PROVINCE OF SECURITIES FIRMS LAST FALL IT ANNOUNCED A NOVEL JOINT VENTURE WITH WHAT IS NOW DEAN WITTER DISCOVER & CO TO MARKET A MYRIAD OF SECURITIES AND SERVICES THROUGH NATIONSBANK'S LARGE NETWORK OF BANKING OFFICES SIGNIFICANTLY EXPANDING ITS RETAIL SECURITIES OPERATION 9305070133 930507 ELVIS DISAPPEARANCE IS REPORTED IN NORTH CAROLINA CHECKOUT LANE BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL CLINTON MEETS SPACE ALIEN TOOTHLESS VAMPIRE FORCED TO RAID BLOOD BANKS ELVIS SECRETLY WED IN 1992 SMALLTOWN SUPERMARKET BANISHES TABLOIDS THE SUPERMARKET HEADLINE AT LEAST IS ALMOST TRUE AT THE HARRISTEETER GROCERY STORE IN FUQUAYVARINA NC CUSTOMERS HOPING TO READ FANTASTIC OUTLANDISH TALES ABOUT SPACE CREATURES AND MR PRESLEY'S FREQUENT APPEARANCES NOW HAVE ONE CHECKOUT LANE FEWER IN WHICH TO BROWSE THE STORE HAS REMOVED THE TABLOIDMAGAZINE RACK FROM ONE OF THE CHECKOUT LANES IN RESPONSE TO CUSTOMER COMPLAINTS STORIES ABOUT SIAMESETWIN PROSTITUTES AND POTTYTRAINED FROGS ALONG WITH THE GROTESQUE PICTURES WERE DISTURBING TO PARENTS SAYS ED COOK ADVERTISING DIRECTOR FOR HARRISTEETER INC A CHAIN BASED IN MATTHEWS NC WE WANT TO MAKE THE CHECKOUT PROCESS EASIER ON YOUNG MOTHERS WITH SMALL CHILDREN HE ADDS DOROTHY GRANT A FUQUAYVARINA BUSINESSWOMAN WAS ONE OF THE CUSTOMERS WHO APPROACHED THE HARRISTEETER STORE'S MANAGEMENT ABOUT REMOVING THE TABS FROM PUBLIC VIEW MS GRANT A GRANDMOTHER OF THREE CONTENDS THAT THE TABLOIDS UNNECESSARILY BEWILDER AND FRIGHTEN CHILDREN ANYTHING THAT IS MINDLESS SHOULD BE STEERED AWAY FROM AND BE REPLACED WITH SOMETHING THAT HAS SOME USEFULNESS SHE SAYS IF I CAN SAVE ONE CHILD FROM HAVING A BAD EXPERIENCE OR A BAD NIGHTMARE IT WILL BE WORTH IT AND WHAT WILL FOLKS IN THE TABLOIDFREE LANE BE MISSING WELL THE CURRENT 76PAGE COLLECTOR'S EDITION OF WEEKLY WORLD NEWS FOR STARTERS THERE'S THE SURPRISING TALE OF A MOTHER WHO GAVE BIRTH TO 12 BABIES IN ONE DAY THE NEWS THAT HITLER WAS A WOMAN AND A GOOD WEATHER STORY SATAN'S FACE SEEN IN HURRICANE ANDREW CONVINCED BY SUCH CUSTOMERS AS MS GRANT HARRISTEETER EXPECTS TO OPEN AT LEAST ONE TABLOID AND MAGAZINEFREE CHECKOUT LANE IN EACH OF ITS 133 STORES BY JUNE SO FAR CUSTOMER REACTION TO THE TABLOIDFREE LANE HAS BEEN VERY POSITIVE SAYS MR COOK IAIN CALDER PRESIDENT AND EDITOR IN CHIEF OF THE NATIONAL ENQUIRER MAGAZINE SAYS SUCH A PLAN DOESN'T CONCERN HIM WITH THE MAGAZINE WIDELY AVAILABLE IN SUPERMARKET CHECKOUT LANES NATIONWIDE MR CALDER SAYS THERE'S LITTLE POSSIBILITY OF THIS BECOMING A TREND BESIDES HE ASSERTS FAITHFUL READERS OF THE TABLOID WOULDN'T STAND FOR IT 9305070132 930507 ECONOMY RETAILERS POST DISAPPOINTING APRIL RESULTS ADDITIONAL POOR WEATHER LOWER TAX REFUNDS SLOW DOWN SPENDING BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S LARGEST RETAILERS POSTED ANOTHER DISAPPOINTING MONTH IN APRIL AS MORE POOR WEATHER LOWER TAX REFUNDS AND A DIM VIEW OF THE ECONOMY KEPT CONSUMERS FROM BUYING SPRING GOODS CONSUMERS CLEARLY HAVE THEIR HANDS IN THEIR POCKETS SAID KENNETH A MACKE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF DAYTON HUDSON CORP THEY ARE INCREASINGLY CONCERNED ABOUT THE UNCERTAINTY OF JOBS THE POSSIBILITY OF ADDITIONAL NEW TAXES AND THE UNKNOWN COSTS OF HEALTHCARE REFORM RETAIL SALES IN APRIL FOR STORES OPEN AT LEAST A YEAR ROSE BETWEEN 24 AND 34 COMPARED WITH THE FOURWEEK 1992 PERIOD BASED ON THE WEIGHTED INDEXES OF SEVERAL RETAIL ANALYSTS WHILE THAT MARKS AN IMPROVEMENT OVER WEATHERDEPRESSED FEBRUARY AND MARCH SALES APRIL SALES WERE STILL BELOW PLAN FORCING RETAILERS TO MARK DOWN SLOWMOVING MERCHANDISE FIRSTQUARTER EARNINGS WILL LIKELY BE HURT AS A RESULT APPAREL RETAILERS WERE AMONG THE HARDEST HIT LAST MONTH ESPECIALLY MEN'S CLOTHIERS THEY APPARENTLY WERE HURT BECAUSE MEN ARE LESS LIKELY TO BUY CLOTHES WHEN THEY HAVE LESS TAX REFUND MONEY TO SPEND WHICH WAS A RESULT OF LOWERED WITHHOLDINGS SAID THOMAS TASHJIAN A FIRST MANHATTAN ANALYST SAMESTORE SALES FELL 6 AT MERRYGOROUND ENTERPRISES INC AND TOTAL SALES SLIPPED 38 AT EDISON BROTHERS STORES INC AND MEN'S APPAREL SALES AT JC PENNEY & CO WHICH OTHERWISE HAD A FAIRLY GOOD MONTH WERE SLIGHTLY OFFPLAN FOR THE FIRST TIME IN MONTHS COOL WEATHER MEANWHILE KEPT WOMEN OUT OF STORES STOCKED WITH SHORTS AND SUNDRESSES ALTHOUGH THOSE PURCHASES PICKED UP THE LAST WEEK OF APRIL AS THE WEATHER TURNED WARMER LIMITED INC HAD FLAT SAMESTORE SALES AND CHARMING SHOPPES INC'S SAMESTORE SALES FELL 1 GAP INC WHICH HAS STRUGGLED WITH LUKEWARM RESPONSE TO ITS BASIC CLOTHES MANAGED A 2 SAMESTORE SALES INCREASE DESPITE FEWER MARKDOWNS THAT MAY INDICATE THAT THE MERCHANDISE IS STARTING TO CLICK WITH SHOPPERS SAID JEFFREY EDELMAN AN ANALYST WITH CJ LAWRENCE INC IN ADDITION TO TIGHT BUDGETS AND BAD WEATHER THE FASHION CYCLE HASN'T BEEN VERY KIND TO RETAILERS SAID ROBERT ROTH A MERRILL LYNCH ANALYST HE CITES A LACK OF SOCALLED WARDROBE WHACKERS FASHION ITEMS SO APPEALING THAT CONSUMERS ARE PERSUADED TO SPLURGE CONSUMERS ALSO ARE SPENDING MORE FREELY ON BIGTICKET DURABLE GOODS TAKING AWAY DISCRETIONARY INCOME FOR SUCH THINGS AS CLOTHING FURNITURE SALES ARE STRONG SO THE CONSUMER CAN'T BE THAT DEAD SAID MR EDELMAN INDEED KMART CHAIRMAN JOSEPH ANTONINI SAID SALES OF ITS DURABLE MERCHANDISE WERE IN LINE WITH PLAN IN APRIL WHILE APPAREL CONTINUED TO BE AFFECTED BY BELOWNORMAL TEMPERATURES THROUGH MUCH OF THE COUNTRY POOR WEATHER ALSO HURT THE SPECIALTYSTORE DIVISION AT KMART WHERE TOTAL SAMESTORE SALES ROSE JUST 1 WALMART STORES INC POSTED A 6 INCREASE IN SAMESTORES SALES FALLING SHORT OF ITS USUAL DOUBLEDIGIT GAINS BUT BESTING MOST OTHER RETAILERS THE NATION'S LARGEST RETAILER SAID ITS SLIGHTLY WEAKERTHANEXPECTED SALES GAIN WAS A RESULT OF FLAT COMPARABLE SALES AT ITS TROUBLED SAM'S CLUB WAREHOUSE DIVISION SEARS ROEBUCK & CO'S GENERAL MERCHANDISE GROUP ALSO BUCKED THE TREND BY POSTING A 5 SAMESTORE SALES INCREASE ARTHUR C MARTINEZ THE MERCHANDISE GROUP'S CHAIRMAN AND CHIEF EXECUTIVE CITED STRONG GAINS IN WOMEN'S AND MEN'S APPAREL FOOTWEAR AND FINE JEWELRY AS WELL AS IN HOME OFFICE EQUIPMENT AND VARIOUS LAWN AND GARDEN LINES MASS MERCHANDISER JC PENNEY ALSO CONTINUED TO BE AMONG THE BEST PERFORMERS WITH A 4 SAMESTORE SALES GAIN DEPARTMENTSTORE RETAILERS HAD GENERALLY LACKLUSTER RESULTS ALLEN QUESTROM CHAIRMAN AND CHIEF EXECUTIVE OF FEDERATED DEPARTMENT STORES INC SAID THE COMPANY'S 22 SAMESTORE SALES INCREASE WAS IN LINE WITH EXPECTATIONS GIVEN THE IMPACT OF UNFAVORABLE WEATHER IN THE PERIOD HE SAID FEDERATED CONTINUED TO VIEW THE CURRENT RETAIL CLIMATE WITH A DEGREE OF CAUTION AS A RESULT OF CONSUMER UNCERTAINTY ABOUT THE ECONOMY MAY DEPARTMENT STORES INC POSTED A 1 INCREASE IN SAMESTORE SALES BUT ANALYSTS NOTED THAT ITS SALES HAVE BEEN STRONG IN RECENTS MONTHS AND THAT STRICT COSTCUTTING AND CONSOLIDATION OF SOME DIVISIONS WILL HELP BOLSTER THE RETAILER'S FIRSTQUARTER PROFIT MARGINS SAMESTORE SALES DROPPED 5 MEANWHILE AT DAYTON HUDSON PROMPTING MR MACKE ITS CHAIRMAN TO FORECAST LOWER FIRSTQUARTER EARNINGS COMPARED WITH THE 40 CENTS A SHARE THE RETAILER EARNED IN THE 1992 QUARTER WOOLWORTH CORP'S CHAIRMAN AND CHIEF EXECUTIVE HAROLD E SELLS ALSO PROJECTED FIRSTQUARTER RESULTS WOULD BE CONSIDERABLY BELOW A YEAR AGO WHEN THE TROUBLED RETAILER EARNED 13 CENTS A SHARE WOOLWORTH'S SAMESTORE SALES FELL 23 IN APRIL MOST COMPANIES ARE LIKELY TO POST FLAT TO SLIGHTLY LOWER EARNINGS FOR THE FIRST QUARTER AS A RESULT OF THE SLUGGISH SALES AND AN INCREASE IN MARKDOWNS SAID MR EDELMAN OF CJ LAWRENCE BUT RETAILING'S FIRST QUARTER IS THE LEAST SIGNIFICANT BECAUSE IT ONLY CONTRIBUTES 10 TO 15 OF TOTAL SALES IN ADDITION COMPANIES NOW WILL LIKELY BECOME EVEN MORE CONSERVATIVE AS FAR AS INVENTORY AND EXPENSE CONTROLS WHICH SHOULD HELP BOLSTER EARNINGS FOR THE REST OF THE YEAR SAID JEFFREY FEINER AN ANALYST WITH SALOMON BROTHERS SALES IN THE COMING MONTHS WILL LIKELY BE HELPED BY WARMER WEATHER AND EASY COMPARISONS WITH THE YEARAGO PERIODS WHEN WEATHER KEPT CONSUMERS HOME BUT SHOPPERS STILL WILL BE GRAPPLING WITH LOWER TAX REFUNDS AND PRESIDENT CLINTON'S TAX PROPOSALS LOOKING FORWARD IT'S GOING TO BE TOUGH SAID ROBERT BUCHANAN AN ANALYST WITH ALEX BROWN & SONS INC WE DO NOT HAVE POSITIVE MOMENTUM GOING INTO THE MONTH OF MAY AND CONSUMER DEMAND REMAINS WEAK 9305070131 930507 TRACOR INC GETS AIR FORCE ORDER AUSTIN TEXAS TRACOR INC SAID IT RECEIVED AUTHORIZATION FROM THE AIR FORCE TO PRODUCE 330 ANTIAIRCRAFT THREAT PROTECTION SYSTEMS WHICH PROTECT PLANES FROM ENEMY FIRE THE COMPANY SAID THE AUTHORIZATION VALUED AT 22 MILLION COVERS THE FIRST YEAR OF A FOURYEAR PACT VALUED AT MORE THAN 100 MILLION 9305070130 930507 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED APRIL 30 ACCOUNTED FOR 102 OR AN AVERAGE 269 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 137 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 317 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 371 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES ABOUT 506 OF PROGRAM TRADING WAS FOR CUSTOMERS WHILE 332 OF WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 162 WAS EXECUTED BY FIRMS' USE OF PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COOPER NEFF DID ALL OF ITS PROGRAM TRADING FOR ITS OWN ACCOUNT WHILE NOMURA SECURITIES MORGAN STANLEY FIRST BOSTON AND LEHMAN BROTHERS DID ALL OR MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9305070128 930507 GRUMMAN TO CUT 424 WORKERS BETHPAGE NY GRUMMAN CORP CONTINUING A CORPORATE CONSOLIDATION DUE TO THE DECLINING DEFENSE BUDGET SAID IT WILL DISMISS 424 EMPLOYEES AS PART OF A PLAN TO CLOSE THREE PLANTS THE COMPANY SAID IT WILL CLOSE FACILITIES IN GREAT RIVER NY WEBSTER TEXAS AND SALISBURY MD EMPLOYEES AT SALISBURY AND WEBSTER WILL BE DISMISSED BY THE END OF 1994 WORKERS AT THE GREAT RIVER PLANT WILL BE TRANSFERRED TO A FACILITY IN BETHPAGE BY THE MIDDLE OF 1995 9305070127 930507 UNITED RETAIL'S APRIL SALES FELL ROCHELLE PARK NJ UNITED RETAIL GROUP INC SAID SAMESTORE SALES FOR APRIL WERE DOWN 11 COMPARED WITH A 24 INCREASE IN APRIL 1992 TOTAL SALES WERE UP 10 TO 301 MILLION FROM 273 MILLION THE OPERATOR OF LARGESIZE WOMEN'S APPAREL STORES SAID THAT FOR ITS FIRST QUARTER SAMESTORE SALES WERE OFF 5 WHILE TOTAL SALES ROSE 18 TO 83 MILLION FROM 702 MILLION RAPHAEL BENAROYA CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID FIRSTQUARTER SALES WERE SIGNIFICANTLY BELOW PLANS HE SAID THAT WHILE LATE ARRIVAL OF SPRING WEATHER CONTRIBUTED TO THE DISAPPOINTING SALES THE MERCHANDISE ASSORTMENT IN EARLY SPRING ALSO WAS LESS APPEALING THAN USUAL 9305070126 930507 TAX RATES AND HUMAN BEHAVIOR BY MARTIN FELDSTEIN THE CLINTON ADMINISTRATION CONTINUES TO IGNORE THE HARMFUL EFFECTS OF HIGH MARGINAL TAX RATES THE WHITE HOUSE NOW TALKS OF A NEW 7 PAYROLL TAX TO SUBSTITUTE FOR EMPLOYER PREMIUMS FOR HEALTH INSURANCE IN FACT THE NEW PAYROLL TAX WOULD HAVE TO BE AT LEAST 9 JUST TO REPLACE EXISTING PREMIUMS AN ADDITIONAL TAX EQUAL TO 6 OF PAYROLL WOULD BE NEEDED TO PAY FOR THE ADMINISTRATION'S PLAN TO EXTEND COVERAGE TO THE UNINSURED AND UNDERINSURED THE NET EFFECT OF THE NEW CLINTON TAXES WOULD BE TO RAISE THE MARGINAL TAX RATE OF TYPICAL EMPLOYEES BY MORE THAN 15 PERCENTAGE POINTS THE WHITE HOUSE APPEARS UNAWARE THAT TAXES DO MORE THAN TRANSFER MONEY FROM INDIVIDUALS TO THE GOVERNMENT HIGH MARGINAL TAX RATES ALSO DISTORT INCENTIVES AND THOSE DISTORTIONS WASTE VALUABLE HUMAN AND PHYSICAL RESOURCES THE PROPOSED NEW TAXES WOULD COME ON TOP OF MARGINAL TAX RATES THAT ARE ALREADY REMARKABLY HIGH FOR ORDINARY WORKING PEOPLE A SINGLE PERSON WHO EARNS 25000 OR A MARRIED PERSON IN A COUPLE THAT EARNS 40000 ALREADY FACES A 50 MARGINAL TAX RATE A 28 FEDERAL INCOME TAX RATE A 15 EMPLOYEREMPLOYEE SOCIAL SECURITY PAYROLL TAX RATE AND A STATE INCOME TAX TYPICALLY ABOUT 7 THE NEW TAXES BEING CONSIDERED WOULD RAISE THE MARGINAL TAX RATE FOR THESE INDIVIDUALS TO MORE THAN 65 AN EMPLOYER WHO NOW PAYS 20 IN WAGES AND PAYROLL TAXES FOR AN ADDITIONAL EMPLOYEE HOUR DELIVERS ONLY 10 OF EXTRA SPENDABLE INCOME TO AN INDIVIDUAL WHOSE TOTAL MARGINAL TAX RATE IS 50 ADDING A NEW 15 TAX WOULD MEAN THAT THE 20 WOULD DELIVER ONLY 7 OF ADDITIONAL SPENDABLE INCOME TO THE EMPLOYEE ANY ECONOMY IN WHICH A 20ANHOUR EMPLOYER COST GIVES ONLY 7 AN HOUR OF SPENDABLE INCOME TO THE EMPLOYEE IS HEADED FOR TROUBLE UNDER THE CLINTON PLAN TO REPLACE EXISTING EMPLOYER PREMIUMS WITH A PAYROLL TAX THE TAX PAYMENTS WOULD BE DIRECTED BY THE EMPLOYER TO A HEALTH INSURANCE PROVIDER PROPONENTS ARGUE THAT THIS WOULD SIMPLIFY THE INSURANCE SYSTEM AND MAKE IT EASIER TO DEAL WITH PARTTIMERS SOME CLAIM THAT THE CHANGE FROM PREMIUMS TO A PAYROLL TAX DOESN'T REALLY MATTER BECAUSE IT'S JUST ANOTHER WAY OF PAYING FOR THE SAME COSTS THIS MISSES THE IMPORTANT POINT THAT A PAYROLL TAX UNLIKE THE EXISTING PREMIUMS WOULD REDUCE THE SPENDABLE INCOME THAT RESULTS FROM EACH INCREMENTAL HOUR OF WORK A 9 PAYROLL TAX ON TOP OF THE EXISTING 50 MARGINAL TAX RATE WOULD CUT THE SPENDABLE INCOME THAT RESULTS FROM AN INCREMENTAL HOUR OF WORK BY 18 OF WHAT IT IS TODAY THIS IS TRUE REGARDLESS OF HOW THE PAYROLL TAX IS FORMALLY DIVIDED BETWEEN EMPLOYERS AND EMPLOYEES THE SHARP DECLINE IN THE REWARD FOR WORKING THE ADDITIONAL HOUR WOULD INDUCE EMPLOYERS AND EMPLOYEES TO REDUCE TAXABLE WAGES IN FAVOR OF UNTAXED FRINGE BENEFITS SHORTER HOURS AND LONGER VACATIONS THIS MEANS A WASTEFUL MISUSE OF RESOURCES A LOWER TAX BASE AND THEREFORE THE NEED FOR AN EVEN HIGHER PAYROLL TAX RATE TO RAISE THE SAME AMOUNT OF REVENUE EVEN IF SUBSTITUTING A PAYROLL TAX FOR THE CURRENT PREMIUMS WERE ADMINISTRATIVELY DESIRABLE THE DISTORTIONS FROM THE EXTRA PAYROLL TAX WOULD BE SO LARGE THAT THIS IDEA SHOULD BE SHELVED AND FORGOTTEN THE CLINTON PLAN TO PROVIDE HEALTH INSURANCE TO THOSE WHO ARE CURRENTLY UNINSURED OR UNDERINSURED IS SO LAVISH THAT THE GOVERNMENT'S OWN EXPERTS ESTIMATE THAT IT WILL COST BETWEEN 100 BILLION AND 150 BILLION A YEAR THAT'S EQUIVALENT TO BETWEEN 2700 AND 4100 PER UNINSURED MAN WOMAN AND CHILD TO FINANCE IT WOULD TAKE A TAX INCREASE EQUAL TO AN ADDITIONAL 6 PAYROLL TAX IF THE CLINTON PLANNERS RECOGNIZED THE ADVERSE EFFECTS OF HIGH MARGINAL TAX RATES THEY WOULD SCALE BACK THEIR PLAN AND USE EMPLOYER MANDATES NOT TAXES TO BROADEN COVERAGE THE CLINTON ADMINISTRATION'S WILLINGNESS TO CONSIDER INCREASING MARGINAL RATES FOR MIDDLE AND LOWERINCOME EMPLOYEES AS WELL AS A 35 RISE IN THE MARGINAL RATE OF WEALTHY TAXPAYERS REFLECTS A FUNDAMENTALLY INCORRECT VIEW OF HOW TAXES AFFECT INDIVIDUAL BEHAVIOR THE POLICY OFFICIALS WHO ADVOCATE SUCH TAXES AND THE STAFFS THAT ESTIMATE THEIR REVENUE IMPACT ASSUME THAT INDIVIDUAL BEHAVIOR IS NOT AFFECTED IN ANY SUBSTANTIAL WAY BY CHANGES IN MARGINAL TAX RATES THAT FALSE ASSUMPTION IMPLIES THAT HIGHER TAX RATES PRODUCE CORRESPONDINGLY HIGHER TAX REVENUE AND SUGGESTS THAT WASTEFUL DISTORTIONS OF TAXPAYER BEHAVIOR ARE NOT A PROBLEM DURING THE PAST 20 YEARS A SUBSTANTIAL BODY OF RESEARCH BY ECONOMISTS HAS MADE IT CLEAR THAT THIS NO RESPONSE OR SMALL RESPONSE VIEW IS WRONG STATISTICAL EVIDENCE HAS CONVINCED THE OVERWHELMING MAJORITY OF THE ECONOMICS PROFESSION THAT INDIVIDUALS RESPOND VERY SUBSTANTIALLY TO THE INCENTIVES CREATED BY TAX RULES MUCH OF THIS RESEARCH IS DIRECTLY RELEVANT TO UNDERSTANDING THE IMPACT OF PRESIDENT CLINTON'S PROPOSED TAX HIKES ECONOMISTS AGREE THAT THE BEHAVIOR OF MARRIED WOMEN IS PARTICULARLY SENSITIVE TO TAX RATES AN IMPORTANT FACT SINCE NEARLY 60 OF THEM ARE WORKING MOST STUDIES IMPLY THAT RAISING MARRIED WOMEN'S MARGINAL RATES FROM 50 TO 65 WOULD REDUCE THEIR HOURS WORKED BY THE EQUIVALENT OF ONE DAY A WEEK THROUGH MORE PARTTIME WORK AND A DECREASE IN LABOR FORCE PARTICIPATION YET THE TREASURY AND CONGRESSIONAL STAFFS IGNORE SUCH EMPLOYMENT REDUCTIONS WHEN THEY CALCULATE THE REVENUE EFFECTS OF PROPOSED TAX CHANGES AND THE POLICY ADVOCATES IGNORE THE DISTORTIONS IN BEHAVIOR AND THE FALL IN NATIONAL INCOME WHEN THEY PROPOSE MASSIVE TAX RATE HIKES STATISTICAL RESEARCH BY ECONOMISTS ALSO SHOWS THAT INDIVIDUALS WHO FACE THE HIGHEST TAX RATES LOAD THEIR PORTFOLIOS WITH UNTAXED MUNICIPAL BONDS AND LOWDIVIDEND STOCKS INSTEAD OF MORE HIGHLY TAXED BONDS AND THAT THE INCENTIVE TO DO SO WOULD BE MUCH GREATER WITH A 40 FEDERAL TAX ON INVESTMENT INCOME THAN WITH THE CURRENT 32 TAX FIFTEEN YEARS AGO THE STAFFS OF THE TREASURY AND CONGRESS DENIED THAT THE CAPITAL GAINS TAX INFLUENCED INVESTORS' DECISIONS ABOUT REALIZING CAPITAL GAINS THE MASS OF EVIDENCE THAT HAS ACCUMULATED SINCE THEN HAS FORCED THEM TO RECOGNIZE THAT TAXES DO HAVE A VERY POWERFUL EFFECT ON THE REALIZATION OF GAINS IN ANALYZING PRESIDENT BUSH'S PROPOSAL TO LOWER CAPITAL GAINS RATES THE CONGRESSIONAL STAFF ESTIMATED THAT THE INCREASED WILLINGNESS OF TAXPAYERS TO REALIZE GAINS WOULD OFFSET MORE THAN 80 OF THE REVENUE THAT WOULD BE LOST IF THERE WERE NO IMPACT ON BEHAVIOR MARGINAL TAX RATES ALSO HAVE A POWERFUL EFFECT ON TAX DEDUCTIONS ALTHOUGH NO ONE MAKES CHARITABLE CONTRIBUTIONS JUST TO SAVE TAXES A LARGE VOLUME OF RESEARCH SHOWS THAT THE AMOUNT OF CHARITABLE GIVING IS INCREASED SUBSTANTIALLY BY TAX DEDUCTIBILITY EACH 10 FALL IN THE NET AFTERTAX COST OF GIVING RAISES THE AMOUNT GIVEN BY MORE THAN 10 AND REDUCES TAXABLE INCOMES BY AN EQUAL AMOUNT ECONOMIC STUDIES ALSO CONFIRM THAT HOME OWNERSHIP AND MORTGAGE DEDUCTIONS ARE QUITE SENSITIVE TO HIGHER MARGINAL TAX RATES THESE SUBSTANTIAL EFFECTS OF MARGINAL TAX RATES ON EARNINGS ON PORTFOLIO INCOME AND ON TAX DEDUCTIONS FOR CHARITABLE CONTRIBUTIONS AND MORTGAGE INTEREST IMPLY THAT HIGHER MARGINAL TAX RATES DISTORT INCENTIVES AND THAT THOSE DISTORTIONS WASTE VALUABLE HUMAN AND PHYSICAL RESOURCES THEY ALSO IMPLY THAT HIGH MARGINAL TAX RATES REDUCE TAXABLE INCOME AND THEREFORE GENERATE LESS REVENUE THESE EFFECTS ARE PARTICULARLY IMPORTANT FOR ASSESSING THE CLINTON PROPOSAL TO RAISE MARGINAL TAX RATES ON HIGHINCOME INDIVIDUALS BECAUSE OF THE WAY THAT PROPOSAL WAS DESIGNED THERE WOULD BE A SUBSTANTIAL DISTORTION TO INCENTIVES WITH LITTLE REVENUE GAIN IF INDIVIDUALS REDUCE THEIR TAXABLE INCOME BY JUST 10 OF ADJUSTED GROSS INCOME IN RESPONSE TO THE SHARP JUMP IN MARGINAL RATES THE TREASURY WOULD COLLECT ONLY ABOUT ONEFOURTH THE REVENUE THAT WOULD BE COLLECTED IF THERE WERE NO BEHAVIORAL RESPONSE ALTHOUGH THE TREASURY AND CONGRESSIONAL STAFFS CLAIM THAT THEY TAKE SOME ECONOMIC RESPONSE INTO ACCOUNT IN THEIR REVENUE ESTIMATES OF THE CLINTON PLAN THEY REFUSE TO SAY HOW MUCH THEY DO ADMIT THAT THEY COMPLETELY IGNORE THE CHANGE IN EMPLOYMENT AND HOURS AND ANY OTHER CHANGES THAT AFFECT REAL INCOME MY OWN ESTIMATES WITH DANIEL FEENBERG AT THE NATIONAL BUREAU OF ECONOMIC RESEARCH IMPLY THAT THE GOVERNMENT REVENUE ESTIMATORS IGNORE ALMOST ALL OF THE TAXPAYERS' LIKELY RESPONSE THE MEMBERS OF CONGRESS SHOULD DEMAND TO KNOW WHAT THEIR REVENUE ESTIMATORS ARE ASSUMING BEFORE THEY ENACT A MASSIVE AND DAMAGING INCREASE IN MARGINAL TAX RATES MR FELDSTEIN FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IS A PROFESSOR OF ECONOMICS AT HARVARD 9305070125 930507 VALUE CITY SALES INCREASE 07 COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID SALES FOR THE FOUR WEEKS ENDED APRIL 24 INCREASED 07 TO 633 MILLION FROM 629 MILLION IN THE SAME PERIOD LAST YEAR THE OFFPRICE DEPARTMENTSTORE CHAIN SAID COMPARABLESTORE SALES FELL 28 SALES FOR THE 39 WEEKS ENDED APRIL 24 INCREASED 48 TO 6435 MILLION FROM 142 MILLION IN THE YEAREARLIER PERIOD THE COMPANY SAID COMPARABLESTORE SALES ROSE 09 FOR THE 39WEEK PERIOD 9305070124 930507 VIACOM UNIT BUYS ICOM NEW YORK VIACOM INTERNATIONAL INC COMPLETED ITS ACQUISITION OF ICOM SIMULATIONS INC A CHICAGO DEVELOPER OF SOFTWARE FOR CDROM AND CARTRIDGEBASED VIDEO GAMES ICOM WILL BE PART OF VIACOM NEW MEDIA A VIACOM UNIT THAT IS DEVELOPING AND MARKETING INTERACTIVE SOFTWARE VIACOM AN ENTERTAINMENT AND COMMUNICATIONS COMPANY IS A UNIT OF VIACOM INC WHICH IS 76 OWNED BY NATIONAL AMUSEMENTS INC DEDHAM MASS 9305070123 930507 REVIEW & OUTLOOK EDITORIAL RETURN OF THE TAX OLYMPIAD MARTIN FELDSTEIN MADE A SPLASH IN THESE PAGES AWHILE BACK BY ARGUING THAT THE CLINTON TAX HIKES WOULD RAISE FAR LESS REVENUE THAN THE ADMINISTRATION EXPECTS A FEW DAYS LATER TREASURY SECRETARY LLOYD BENTSEN SUGGESTED THAT THIS TIME TREASURY'S TAX WRITERS WOULD FIND A WAY TO OUTFOX ALL THE ACCOUNTANTS AND TAX LAWYERS IN THE LAND WHO DEVOTE THEIR ENERGIES TO HELPING PEOPLE WITH MONEY AVOID TAXES THIS MARKS THE OFFICIAL START OF ROUND UMPTYSEVEN OF THE IRS VS AMERICAN INGENUITY MAYBE ESPN SHOULD TELEVISE THE CONTEST AS A BESTOFSEVEN SERIES IT WOULD CERTAINLY BE AN UPSET OF HISTORIC PROPORTIONS IF HIGHER TAXES ACTUALLY LED TO LOWER DEFICITS JUDGING BY THE CRANKINESS OF THE HOUSE WAYS AND MEANS DEMOCRATS AS THEY BEGAN SORTING OUT THE CLINTON TAX PLAN THIS WEEK THEY KNOW THEIR SPORTS HISTORY THE LAST CHALLENGER WAS GEORGE BUSH OF TEXAS IN THE 1990 BUDGET DEAL PUT TOGETHER BY COACH DICK DARMAN HE RAISED THE TOP INCOME TAX RATE TO 31 AND SLAPPED A NEW EXCISE ON LUXURY GOODS THE ECONOMY WENT INTO RECESSION AND INSTEAD OF GOING DOWN THE DEFICIT SURGED GEORGE MUST GO SCREAMED THE CROWD MR CLINTON'S RHETORICAL STRATEGY IS TO BLAME THE DEFICIT ON TAX CUTS IN THE 1980S THAT ALLOWED THE RICH TO ESCAPE THEIR FAIR SHARE HE DOESN'T BOTHER TO SQUARE THIS WITH IRS DATA THAT PLAINLY SHOW THE RICH HOWEVER YOU DEFINE THEM PAYING MORE TAXES AFTER RATES WENT DOWN PUT SIMPLY PEOPLE CHANGE THEIR BEHAVIOR IN RESPONSE TO TAX CHANGES WE RECENTLY SHOWED HOW HILLARY CLINTON SAVED HERSELF AT LEAST 5000 IN TAXES BY CASHING OUT HER LAW FIRM PROFITSHARING A MONTH AHEAD OF SCHEDULE SMART LADY SOME ON WALL STREET ALSO TOOK THEIR ANNUAL BONUSES IN DECEMBER INSTEAD OF JANUARY TO ESCAPE THE SAME CLINTON TAX HIKES TREASURY AND THE JOINT TAX COMMITTEE WHICH ARE RESPONSIBLE FOR REVENUE ESTIMATES CAN'T QUITE GET THEIR MINDS AROUND THIS THEY WON'T TELL US THEIR METHODOLOGY PERHAPS LIKE THE ALIEN IN STAR TREK IT DRIVES HUMANS MAD TO BEHOLD IT BUT WHATEVER GOES ON IN THEIR BLACK BOX IT CLEARLY GIVES SHORT SHRIFT TO BEHAVIORAL EFFECTS THIS WAS EVIDENT IN MR FELDSTEIN'S REVERSEENGINEERING OF THE CLINTON ESTIMATES WHICH HE ELABORATES NEARBY SEE RELATED ARTICLE TAX RATES AND HUMAN BEHAVIOR WSJ MAY 7 1993 HE NOTED THAT IF YOU ASSUME TAXPAYERS WILL STAND STONE STILL WHILE MR CLINTON REACHES MORE DEEPLY INTO THEIR POCKETS THEY'D PAY AN ADDITIONAL 26 BILLION A YEAR IN INCOME TAXES THE FACT THAT THE CLINTONITES COUNT ON RAISING NEARLY THIS MUCH 25 BILLION SUGGESTS THAT THEY THINK TAXPAYERS ARE INDEED A STATIC LOT AFTER CRUNCHING THROUGH 100000 TAX RETURNS MR FELDSTEIN DISCOVERED THAT TAXPAYERS ARE QUITE NIMBLE AND THAT THE CLINTON TAXES WILL PROBABLY RAISE ONLY ABOUT 7 BILLION WEALTHY HOUSEHOLDS COULD TRIM THEIR TAXABLE INCOMES A MERE 10 AND MAKE THREEQUARTERS OF THE CLINTON REVENUE GAINS VANISH INTO SMOKE THEY COULD DO THIS VOLUNTARILY BY WORKING LESS TAKING MORE FRINGE BENEFITS OR INVESTING DIFFERENTLY SECRETARY BENTSEN CAN'T CHANGE THIS NO MATTER HOW WELL HE OUTGUESSES THE SHELTER INDUSTRY THE CLINTON PEOPLE SELL THEIR PACKAGE AS DEFICIT REDUCTION AND POLLS SHOW THAT VOTERS WILL SUFFER TAXES ONLY FOR THAT REASON BUT WHAT IF THE DEFICIT ACTUALLY GETS WORSE WE'VE BEEN ACCUSED OF ARGUING THAT YOU CAN RUN UP THE DEFICIT INDEFINITELY AND IT DOESN'T MATTER BUT OUR POINT HAS ALWAYS BEEN YOU CAN'T SOLVE THE DEFICIT BY LOADING TAXES ENDLESSLY ON THE PRODUCTIVE ECONOMY YOU HAVE TO GROW THE ECONOMY AND TACKLE SPENDING THIS ADMINISTRATION GAVE UP ON DEFICIT REDUCTION EVEN BEFORE IT STARTED ITS PLAN CONSISTS ALMOST ENTIRELY OF TAX HIKES MR CLINTON GOES ON AND ON ABOUT THE RUNAWAY COST OF MEDICARE AND MEDICAID BUT HIS SOLUTION TO THAT IS TO LAUNCH A VAST NEW FEDERAL ENTITLEMENT PROGRAM THE BIGGEST THING SINCE SOCIAL SECURITY EVEN IF YOU BUY THEIR OWN REVENUE ESTIMATES THE CLINTON FOLKS PLAN TO ADD 11 TRILLION TO THE NATIONAL DEBT OVER FOUR YEARS COMPARED WITH 796 BILLION FOR MR BUSH THE NATIONAL DEBT WILL THEN APPROACH 75 OF GDP THOMAS SYNNOTT OF US TRUST COMPANY CALLS THIS THE DEBTTRAP DANGER ZONE WHEN YOU BEGIN BORROWING JUST TO PAY INTEREST AND THINGS CAN REALLY GET OUT OF HAND OBVIOUSLY WE NEED TO GET A HANDLE ON THIS THE FIRST STEP WOULD BE TO SETTLE THE ARGUMENT BETWEEN THE DYNAMIC SCHOOL OF REVENUE ESTIMATORS AND THE STATICANALYSIS CROWD AROUND LLOYD BENTSEN'S TREASURY THEN DEMOCRATS IN CONGRESS SHOULD ASK THEMSELVES WHETHER THEY REALLY WANT TO ENACT 316 BILLION IN SACRIFICE ON THE AMERICAN PEOPLE ONLY TO FIND THEMSELVES EXPLAINING IN NOVEMBER 1994 WHY THE DEFICIT IS BIGGER THAN EVER 9305070122 930507 ANNTAYLOR STORES' APRIL SALES NEW YORK ANNTAYLOR STORES CORP SAID THAT APRIL SAMESTORE SALES OR SALES IN STORES OPEN A YEAR OR MORE ROSE 33 FOR STORES THAT IT OWNS WHILE TOTAL SAMESTORE SALES ROSE JUST 13 APRIL 1992 FIGURES INCLUDED SALES FROM LEASED SHOE DEPARTMENTS THOSE DEPARTMENTS WERE PHASED OUT ON FEB 1 TOTAL NET SALES WERE UP 47 TO 455 MILLION FOR THE FISCAL 13 WEEKS ENDED MAY 1 THE WOMEN'S APPAREL RETAILER SAID THAT SAMESTORE SALES ROSE 31 FOR ITS OWNED STORES AND 1 FOR TOTAL STORES TOTAL NET SALES ROSE 7 TO 1202 MILLION 9305070121 930507 CIRCUIT CITY APRIL SALES ROSE 23 RICHMOND VA CONSUMER ELECTRONICS AND APPLIANCE RETAILER CIRCUIT CITY STORES INC SAID APRIL SALES ROSE 23 TO 2465 MILLION FROM 1997 MILLION WHILE COMPARABLE STORE SALES ROSE 9 THE COMPANY SAID THE GAINS IN PART REFLECT ITS SUPERSTORE EXPANSION PROGRAM INCLUDING 27 STORES OPENED IN THE SECOND HALF OF FISCAL 1993 CIRCUIT CITY OPENED ITS SECOND BOSTON AREA SUPERSTORE AT THE END OF APRIL AND PLANS TO OPEN ANOTHER SEVEN STORES IN THIS MARKET THIS MONTH CIRCUIT CITY OPERATES 215 SUPERSTORES SEVEN CIRCUIT CITY STORES AND 39 SMALLER MALLBASED STORES IN THE EASTERN MIDWESTERN AND WESTERN US 9305070120 930507 SKANSKA UNIT GETS TANZANIA JOB STOCKHOLM SWEDISH CONSTRUCTION GROUP SKANSKA AB SAID ITS DANISH SUBSIDIARY C G JENSEN AS RECEIVED AN ORDER VALUED AT 310 MILLION KRONOR 424 MILLION TO BUILD AN INTERNATIONAL HOTEL IN DAR ES SALAAM THE CAPITAL OF TANZANIA THE 250ROOM LUXURYCLASS HOTEL IS A SOCALLED TURNKEY PROJECT SCHEDULED FOR COMPLETION WITHIN 30 MONTHS SKANSKA SAID THE GROUP'S C G JENSEN SUBSIDIARY HAS BEEN ACTIVE IN TANZANIA SINCE 1974 AND HAS BUILT THE COUNTRY'S CENTRAL BANK BUILDING AS WELL AS SEVERAL INDUSTRIAL PROJECTS IT SAID 9305070119 930507 REVIEW & OUTLOOK EDITORIAL ASIDES THE COSTS OF DIVERSITY THE CLINTON WHITE HOUSE WHICH VOWED TO CUT ITS STAFF BY 25 HAS SUDDENLY DECIDED IT NEEDS 74 MILLION IN SUPPLEMENTAL FUNDS THE REQUEST WHIPPED THROUGH THE HOUSE APPROPRIATIONS COMMITTEE YESTERDAY WITH NO PUBLIC NOTICE THE WHITE HOUSE REQUEST INCLUDES AMONG OTHER THINGS 32 MILLION TO HIRE WORKERS TO HELP CLEAR UP THE ENORMOUS BACKLOG OF UNFILLED PRESIDENTIAL APPOINTMENTS THE WHITE HOUSE SAYS IT WILL NEED THE EXTRA WORKERS FOR FOUR TO EIGHT MONTHS IN ORDER TO COMPLETE THIS PROCESS WHAT A RACKET THE WHITE HOUSE'S DIVERSITY OBSESSION SIMULTANEOUSLY KEEPS THE METER RUNNING WHILE CREATING JOBS FOR PEOPLE WHOSE JOB IS TO FILL OTHER JOBS 9305070118 930507 SAINTGOBAIN REVENUE DROPS PARIS CIE DE SAINTGOBAIN SA CITING A DROP IN DEMAND IN ITS MAIN MARKETS SAID CONSOLIDATED REVENUE FOR THE FIRST QUARTER FELL 10 TO 1737 BILLION FRANCS 326 BILLION FROM 1935 BILLION FRANCS A YEAR EARLIER ON A COMPARABLE GROUP STRUCTURE BASIS AND EXCLUDING EXCHANGERATE VARIATIONS THE FIRSTQUARTER REVENUE WAS DOWN 97 FOR ALL OF 1992 THE FRENCH GLASS AND CONSTRUCTION MATERIALS GROUP REPORTED CONSOLIDATED REVENUE OF SLIGHTLY MORE THAN 74 BILLION FRANCS DOWN 14 FROM 1991 9305070117 930507 TECHNOLOGY & HEALTH INTEL HOLDERS APPROVE 2FOR1 SPLIT IN STOCK BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP'S STOCKHOLDERS APPROVED A 2FOR1 STOCK SPLIT FOLLOWING 12 MONTHS THAT SAW INTEL BREAK INTO THE LIMELIGHT AS AN INDUSTRY BELLWETHER AND DURING WHICH ITS STOCK ENJOYED ONE OF ITS BIGGEST RUNUPS THE SPLIT WASN'T A SURPRISE THE SANTA CLARA CALIF CHIP MAKER'S STOCK IS TRADING AT MORE THAN DOUBLE ITS YEARAGO LEVEL AND AFTER A BRIEF SCARE LAST MONTH RELATED TO A PATENT SUIT DURING WHICH INTEL'S STOCK PLUMMETED TO 70 OF ITS 1993 PEAK THE STOCK HAS BEEN CLIMBING AGAIN AND MANY ANALYSTS EXPECT IT TO SET RECORDS LATER THIS YEAR AS THE CHIP MAKER CONTINUES TO PROFIT FROM ITS DOMINANCE IN MICROPROCESSORS THIS THING'S BEEN QUITE UNDERVALUED RECENTLY SAID ANALYST MILLARD PHELPS OF HAMBRECHT & QUIST WHO EXPECTS INTEL'S STOCK TO GO AS HIGH AS 130 A SHARE THIS YEAR IN LATE NATIONAL OVERTHECOUNTER TRADING YESTERDAY INTEL SHARES WERE QUOTED AT 10125 DOWN 25 CENTS LAST WEEK INTEL FILED SUIT AGAINST ADVANCED MICRO CLAIMING THAT ITS CLONES VIOLATE INTEL PATENTS INTEL HAD JUST ANNOUNCED A BANNER QUARTER WITH NET INCOME UP NEARLY THREEFOLD TO 548 MILLION ON 63 HIGHER REVENUE BUT INVESTORS FEARING THAT INTEL WOULD BE FORCED TO CHOOSE BETWEEN LOSING MARKET SHARE AND TRIMMING ITS FAT PROFIT MARGINS TO COPE WITH THE NEW COMPETITION DUMPED INTEL STOCK ITS SHARES WHICH TRADED AS HIGH AS 121 ON APRIL 12 CLOSED AT 87375 ON APRIL 26 BUT WHEN INVESTORS BEGAN LOOKING AT INTEL'S FUNDAMENTAL BUSINESS THEY SAW THAT DEMAND FOR ITS 486 CHIPS AMONG PC MAKERS HAS REMAINED STRONG THIS YEAR AND THAT ADVANCED MICRO DOESN'T HAVE ENOUGH CAPACITY TO MAKE A DENT IN INTEL'S SALES UNTIL 1994 SAID RICHARD WHITTINGTON AN ANALYST WITH GRUNTAL & CO THE STOCK WENT DOWN INAPPROPRIATELY ON THE AMD NEWS SAID MR WHITTINGTON WHO SAID HE EXPECTS INTEL'S SHARES TO TRADE AS HIGH AS 150 A SHARE BY FALL AMD DOESN'T HAVE ANOUGH CAPACITY TO SHIP QUANTITIES UNTIL THE END OF '94 AND CAN'T AFFECT PRICES UNTIL THEN AND THE PC MARKET IS SOAKING UP ALL AVAILABLE SUPPLY OF MICROPROCESSORS MOST ANALYSTS AGREE PARTICULARLY AFTER INTEL'S UPBEAT ANNUAL MEETING WEDNESDAY DURING WHICH INTEL EXECUTIVES SAID THEY DIDN'T EXPECT A SEASONAL SLOWDOWN THIS SUMMER EXECUTIVES ALSO POINTED OUT THAT INTEL'S HUGE CAPITAL INVESTMENTS HAVE ERECTED A MASSIVE BARRIER TO ENTRY TO RIVALS LIKE ADVANCED MICRO CRAIG BARRETT INTEL'S EXECUTIVE VICE PRESIDENT TOLD SHAREHOLDERS THAT THE COMPANY WILL HAVE SPENT ABOUT 100 MILLION ON ITS OLDLINE 386 OVER ITS LIFETIME ABOUT 1 BILLION ON THE 486 AND ABOUT 5 BILLION ON THE PENTIUM ITS NEXTGENERATION MICROPROCESSOR MR PHELPS RAISED HIS ESTIMATE LAST WEEK FOR INTEL'S 1993 NET EARNINGS TO 975 A SHARE FROM 935 A SHARE THAT COMPARES WITH INTEL'S NET INCOME OF 497 A SHARE LAST YEAR HE NOW EXPECTS INTEL TO SELL ABOUT 28 MILLION 486 CHIPS THIS YEAR UP FROM HIS PREVIOUS ESTIMATE OF 25 MILLION STOCKHOLDERS OF RECORD ON MAY 6 WILL BE ENTITLED TO ONE ADDITIONAL SHARE FOR EACH SHARE HELD NEW SHARES WILL BE MAILED JUNE 6 INTEL SAID 9305070116 930507 UNION CARBIDE TO BUILD PLANT DANBURY CONN UNION CARBIDE CORP SAID IT WILL BUILD A BUTANOL FACILITY AT THE COMPANY'S PETROCHEMICALS COMPLEX IN TAFT LA THE NEW FACILITY WHICH IT EXPECTS TO GO INTO OPERATION BY YEAREND 1995 WILL PRODUCE 300 MILLION POUNDS ANNUALLY OF BUTANOL WHICH IS USED IN THE PRODUCTION OF SOCALLED CHEMICAL INTERMEDIATES MAINLY FOR PAINT AND COATINGS THE CHEMICAL AND PLASTICS CONCERN SAID THE NEW PLANT WILL INCREASE CARBIDE'S BUTANOL CAPACITY TO A TOTAL OF 13 BILLION POUNDS YEARLY THE COMPANY DECLINED TO DISCLOSE THE COST OF THE PROJECT 9305070115 930507 EDS WINS 7ELEVEN CONTRACT DALLAS ELECTRONIC DATA SYSTEMS CORP SAID IT AGREED TO PROVIDE AND OPERATE UP TO 4000 AUTOMATIC TELLER MACHINES IN SOUTHLAND CORP'S 7ELEVEN CONVENIENCE STORIES THE PACT IS EXPECTED TO GENERATE MORE THAN 100 MILLION IN REVENUE FOR THE COMPUTER SERVICES UNIT OF GENERAL MOTORS CORP OVER THE 10YEAR TERM OF THE AGREEMENT AN EDS SPOKESMAN SAID SOUTHLAND IS A UNIT OF ITOYOKADO CO OF JAPAN 9305070114 930507 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU COMPILED BY RONALD G SHAFER CLINTON'S SHAKEUP OF HIS WHITE HOUSE STAFF IS UNLIKELY TO CURE PROBLEMS MOVING GORE AIDE ROY NEEL TO THE NO 2 STAFF POST IS ONLY WINDOW DRESSING VETERAN WASHINGTON HANDS SAY NEEL IS ABLE AND WELLLIKED BUT LACKS THE TOUGHNESS AND POLITICAL EXPERIENCE THAT THIS WHITE HOUSE SORELY NEEDS SOME URGE BRINGING IN A HIGHPOWERED OUTSIDER LIKE FORMER TOP DUKAKIS AIDE JOHN SASSO BUT THAT ISN'T LIKELY AS CLINTON SEEMS OBLIVIOUS TO THE SEVERITY OF HIS PROBLEM WHILE THE WHITE HOUSE SCHEDULING OFFICE WILL BE REVAMPED MORE SERIOUS PROBLEMS INCLUDE AN INEPT APPOINTMENTS PROCESS LACK OF STRATEGIC PLANNING AND A SECONDRATE POLITICAL OPERATION TOP AIDE STEPHANOPOULOS WILL BROADEN HIS DUTIES BUT STILL RUN MANY NEWS BRIEFINGS MANY SEE THAT AS A WASTE OF HIS TALENTS AND BETTER DONE WITH MORE HUMOR BY PRESS SECRETARY DEE DEE MYERS POLITICAL AIDE RAHM EMANUEL BUILDS CLOUT BASED ON FRIENDSHIP WITH CHIEF OF STAFF MCLARTY BUT MOST DEMOCRATIC OUTSIDERS SAY HE IS IN OVER HIS HEAD MIXED SIGNALS ON THE ECONOMY PERPLEX THE FED BUT IT STAYS ON THE SIDELINES FEDERAL RESERVE OFFICIALS FRET THAT CONSUMERS AREN'T SPENDING SOME OF THE STEAM SEEMS TO BE TAKEN OUT OF THIS RECOVERY AND WE DIDN'T HAVE A LOT OF STEAM TO START WITH SAYS ONE BUT SOME SEE INFLATION PRESSURESSO A CUT IN RATES ISN'T LIKELY ONE HOPEFUL SIGN FED BANKS IN ATLANTA KANSAS CITY AND ST LOUIS NOTE INCREASED DEMAND FOR SMALL BUSINESS LOANS CLINTON'S ECONOMIC AIDES FEAR THE PILEUP IN INVENTORIES CLOUDS THE SECONDQUARTER OUTLOOK WARNING THAT THE PRESIDENT'S COMING HEALTH PLAN COULD DEPRESS THE ECONOMY AND JOB GROWTH OVER THE NEXT FEW YEARS THEY LOOK FOR WAYS TO HOLD DOWN THE PLAN'S PRICE TAG TO MITIGATE POSSIBLE DAMAGE TO THE ECONOMY HEALTH OFFICIALS WEIGH VARIOUS PHASEIN OPTIONS CONGRESS TINKERS WITH TAXES AS IT BEGINS MOVING ON CLINTON'S ECONOMIC PLAN SENATE LEADER MITCHELL AND GOP SEN CHAFEE SEEK TO REPEAL THE LUXURY TAX BEFORE CONGRESS TAKES UP CLINTON'S TAX BILL THE TAX ON YACHTS PRIVATE PLANES FURS AND JEWELRY IS BLAMED FOR JOB LOSSES BUT HOUSE WAYS AND MEANS CHAIRMAN ROSTENKOWSKI SAYS THE REPEAL MUST BE IN THE TAX BILL AS SUGAR TO ATTRACT SUPPORT FOR THE FULL BILL ROSTENKOWSKI AND SEN MOYNIHAN HEAD OF THE SENATE TAXWRITING COMMITTEE ALSO MEET TO DIVVY UP THE MONEY THAT CLINTON WANTED TO SPEND ON AN INVESTMENT TAX CREDIT AMONG THE TOP OPTIONS LET SMALL FIRMS WRITE OFF 25000 OF EQUIPMENT PURCHASES A YEAR UP FROM 10000 NOW BUT NONE OF THE OPTIONS WOULD GIVE THE ECONOMY THE QUICK BOOST A TAX CREDIT WOULD WHITE HOUSE ECONOMISTS SAY CLINTON HEADS FOR NEW YORK CLEVELAND AND CHICAGO NEXT WEEK TO PROMOTE HIS ECONOMIC PLAN AS A JOB CREATOR DEMOCRATIC WOMEN IN CONGRESS SEEK A SPECIAL BREAK FROM CLINTON'S CAMPAIGNFINANCE OVERHAUL FOR EMILY'S LIST WHICH RAISES MONEY FOR FEMALE CANDIDATES HOUSE DEMOCRATIC LEADERS WANT TO PRESERVE THEIR CAMPAIGN CONTRIBUTIONS FROM SPECIAL INTERESTS REPUBLICANS SPLIT ON HEALTHCARE REFORM SENS MCCAIN GRAMM COATS NICKLES AND LOTT BREAK AWAY FROM A GOP PLAN LED BY DOLE THAT THE DISSIDENTS SAY IS TOO CLOSE TO CLINTON'S MANAGED COMPETITION IDEA THEIR PLAN WOULD ALLOW PEOPLE TO SET UP MEDICAL IRATYPE ACCOUNTS AND GIVE TAX CREDITS FOR THE POOR TO BUY HEALTH COVERAGE DEFENSE CUTS THREATEN TWO MAJOR PROGRAMS OF MCDONNELL DOUGLAS THE NATION'S BIGGEST DEFENSE CONTRACTOR WILLIAM PERRY THE PENTAGON'S NO 2 OFFICIAL SAYS THE COMPANY'S F/A18E/F JET IS ON THE TABLE AS ARE OTHER TACTICAL AIRCRAFT AND HE SAYS OFFICIALS ARE LOOKING AT A NEW APPROACH TO THE TROUBLED C17 CARGO JET FLEXIBLE FRENCH US TRADE REPRESENTATIVE KANTOR SAYS THE NEW FRENCH GOVERNMENT SEEMS TO BE MORE FLEXIBLE THAN WAS PREDICTED ON WORLD TRADETALK ISSUES UNDER THE SOCIALISTS THE FRENCH TRIED TO UNDERMINE AN AGRICULTURAL SETTLEMENT HE NOW PREDICTS THE FRENCH WILL PLAY AN IMPORTANT ROLE IN BOOSTING THE TALKS CUOMO'S SHADOW HAUNTS THE SEARCH FOR A SUPREME COURT NOMINEE CLINTON WOULD LIKE SOMEONE WITH POLITICAL STATURE AND EXPERIENCE COMPARABLE TO THE NEW YORK GOVERNOR TO REPLACE RETIRING JUSTICE WHITE BUT SO FAR NOBODY MEASURES UP THE PRESIDENT CONSIDERS SENS MITCHELL AND LIEBERMAN BUT THAT WOULD RISK REDUCING DEMOCRATIC POWER IN THE SENATE BEFORE COMING BATTLES ON TAXES AND HEALTH CARE QUESTIONS ARE RAISED ABOUT SOME POSSIBLE CANDIDATES HIGHLY REGARDED FEDERAL JUDGES AMALYA KEARSE STEPHEN BREYER AND JOSE CABRANES ARE SEEN AS TOO CONSERVATIVE ONE EMERGING IDEA A WOMAN STATE SUPREME COURT JUDGE SUCH AS WISCONSIN JUDGE SHIRLEY ABRAHAMSON ELLEN PETERS OF CONNECTICUT OR UTAH'S CHRISTINE DURHAM ADVISERS AGREE THAT FINAL CHOICES WON'T BE NARROWED UNTIL THE PRESIDENT'S WIFE WEIGHS IN WHICH SHE HASN'T YET MINOR MEMOS FRIENDS OF DEPARTING SEC CHAIRMAN BREEDEN TOASTED HIM AT A FAREWELL RECEPTION FREE OF CHARGE BUT SENIOR STAFF MEMBERS WERE ASKED TO THANK RICHARD FOR HIS LEADERSHIP WITH A GIFT OF 50 TO PAY FOR THE PARTY TRADE REPRESENTATIVE KANTOR QUIPS THAT THE JAPANESE SHOULD HIRE HIS YOUNG DAUGHTER I HAVE TO NEGOTIATE WITH MY 10YEAROLD EVERY DAY AND I USUALLY LOSE ENERGY SECRETARY O'LEARY REQUIRES ANYONE USING BUREAUCRATIC ACRONYMS IN HER PRESENCE TO DROP 25 CENTS IN A JAR FOR THE AGENCY'S CHILDCARE CENTER 9305070113 930507 50OFF'S SAMESTORE SALES DROP SAN ANTONIO 50OFF STORES INC SAID SAMESTORE SALES IN THE FIVEWEEK PERIOD ENDED APRIL 30 FELL 20 TOTAL SALES IN THE PERIOD INCREASED 14 TO 199 MILLION FROM 175 MILLION A YEAR EARLIER IN THE FIRST QUARTER ENDED APRIL 30 THE DISCOUNT RETAILER SAID SALES AT STORES OPEN A YEAR OR MORE DECLINED 20 FROM A YEAR AGO WHILE TOTAL SALES GREW 12 TO 442 MILLION FROM 394 MILLION THE COMPANY SAID POOR WEATHER AND STRICTER DUTY ENFORCEMENT BY MEXICAN AUTHORITIES ALONG THE TEXAS BORDER CONTINUED TO HAVE A NEGATIVE IMPACT ON ITS RESULTS IN NATIONAL OVERTHECOUNTER TRADING 50OFF CLOSED AT 850 DOWN 125 CENTS 9305070112 930507 SWEDEN'S ERICSSON GETS THAI PACT STOCKHOLM SWEDISH TELECOMMUNICATIONS GROUP TELEFON AB LM ERICSSON SAID THAT ITS ERICSSON COMMUNICATIONS LTD THAILAND UNIT WON A CONTRACT FROM THAI TELEPHONE & TELECOMMUNICATIONS VALUED AT 130 MILLION THE CONTRACT COVERS THE SUPPLY AND INSTALLATION OF AN AUTOMATIC EXCHANGE NETWORK AND NETWORK MANAGEMENT SYSTEM THAI TELEPHONE IS OWNED BY THAI COMPANIES JASMINE INTERNATIONAL LOXLEY ITALTHAI AND PATRA THANAKIT AS WELL AS NIPPON TELEGRAPH & TELEPHONE CORP OF JAPAN SAID ERICSSON 9305070111 930507 CODEALARM FILES PATENT SUIT MADISON HEIGHTS MICH CODEALARM INC SAID IT FILED A SUIT AGAINST DIRECTED ELECTRONICS INC VISTA CALIF CHARGING PATENT INFRINGEMENT IN DISPUTE IS CODEALARM'S PATENT ON TECHNOLOGY FOR ITS KEYLESSENTRY AND REMOTEALARM SYSTEMS FOR VEHICLES THE MAKER OF AUTO SECURITY SYSTEMS DIDN'T SPECIFY THE AMOUNT OF DAMAGES IT SEEKS WE'LL PROVE THAT THEIR PATENT IS INVALID BECAUSE WE INVENTED THE PRODUCT BEFORE THEY PATENTED THEIRS SAID DARRELL ISSA DIRECTED ELECTRONICS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR ISSA SAID HIS COMPANY DIDN'T PATENT ITS PRODUCT IN THE FIRST PLACE BECAUSE THE TECHNOLOGY FOR REMOTE UNITS WAS FAIRLY COMMON 9305070110 930507 MARKETING BRIEF NOTED WHO'S NEWS DAVID ZUCKER 30 WAS NAMED VICE PRESIDENT PROGRAMMING AND HARRIET L SEITLER 36 WAS NAMED VICE PRESIDENT MARKETING AND CREATIVE SERVICES AT ESPN CAPITAL CITIES/ABC INC'S 80OWNED NATIONAL CABLE SPORTS NETWORK BOTH ARE NEW POSTS MR ZUCKER WAS HEAD OF PROGRAMS FOR LONDONBASED EUROSPORT A EUROPEAN CABLETV SPORTS NETWORK IN WHICH ESPN HOLDS AN EQUITY INTEREST MS SEITLER WAS WITH MTV AS SENIOR VICE PRESIDENT NEW BUSINESS DEVELOPMENT AT VH1 9305070109 930507 MARATHON OIL TO EXCHANGE NOTES USX SAID HOLDERS MAY AT THEIR OPTION EXCHANGE THEIR NOTES FOR NEW NOTES DUE JUNE 1 2002 WITH THE SAME PRINCIPAL AMOUNT PAYING INTEREST MONTHLY AT A 975 ANNUAL RATE UNTIL MARCH 1 1994 AND 7 THEREAFTER THE NEW NOTES WHICH WILL BE UNCONDITIONALLY GUARANTEED BY USX WILL NOT BE REDEEMABLE BEFORE MATURITY OR SUBJECT TO ANY SINKING FUND USX SAID IT WILL ACCEPT AT LEAST 150 MILLION PRINCIPAL AMOUNT OF THE NOTES PROVIDING AT LEAST 50 MILLION ARE TENDERED 9305070108 930507 ITALIAN OFFICIAL ORDERED TO TESTIFY IN GREEK PROBE ATHENS GREECE A PARLIAMENTARY COMMITTEE INVESTIGATING THE SALE OF GREECE'S STATERUN AGET HERACLES CEMENT COMPANY TO ITALY'S CALCESTRUZZI SPA SUBPOENAED THE ITALIAN COMPANY'S CHAIRMAN LORENZO PANZAVOLTA WAS ORDERED TO TESTIFY BEFORE THE COMMITTEE MADE UP OF 25 DEPUTIES FROM ALL POLITICAL PARTIES ON MAY 12 IF HE FAILS TO APPEAR AN ARREST ORDER COULD BE ISSUED THE COMMITTEE WAS SET UP ON MARCH 23 AFTER THE MAIN OPPOSITION PANHELLENIC SOCIALIST MOVEMENT OR PASOK ALLEGED THAT THE SALE OF AGET HERACLES WAS DAMAGING TO THE STATE PASOK HAS ALSO SUGGESTED THAT GREEK OFFICIALS WERE BRIBED TO SELL THE COMPANY FOR LESS THAN IT WAS WORTH CALCESTRUZZI IN A JOINT VENTURE WITH THE NATIONAL BANK OF GREECE PAID 124 BILLION DRACHMAS 5785 MILLION FOR A 70 STAKE IN HERACLES LAST YEAR CALCESTRUZZI IS CONTROLED BY ITALIAN INDUSTRIAL CONGLOMERATE FERRUZZI FINANZIARIA SPA THE COMMITTEE HAS QUESTIONED OTHER EXECUTIVES INCLUDING THE HEAD OF THE NATIONAL BANK ABOUT THE SALE ITS FINDINGS ARE NOT LEGALLY BINDING AND COULD SERVE ONLY AS A FIRST STEP TOWARD FUTURE INVESTIGATIONS OR PROSECUTIONS 9305070107 930507 WORTHEN BANKING'S MERGER PLAN LITTLE ROCK ARK WORTHEN BANKING CORP SAID THE EXPIRATION DATE OF ITS AGREEMENT TO MERGE WITH UNION OF ARKANSAS CORP WAS EXTENDED TO TODAY THE BANKING COMPANY SAID IT EXPECTS TO TAKE THE INITIAL STEP TOWARD COMPLETING THE MERGER TODAY BY ACQUIRING ALL OF UNION'S SHARES AND MERGING THE HOLDING COMPANIES WORTHEN SAID THAT THE MERGER OF ITS BANKING OPERATIONS WILL OCCUR AT A LATER DATE AS REPORTED THE FEDERAL RESERVE BOARD CONDITIONALLY APPROVED THE MERGER AND HAD AUTHORIZED THE PARTIES TO COMPLETE IT AS EARLY AS APRIL 30 AND NO LATER THAN JUNE 30 THE COMPANIES' ORIGINAL MERGER AGREEMENT EXPIRED MARCH 31 9305070106 930507 CALPERS CHIEF WANTS LARGER HOLDINGS IN FEWER COMPANIES MORE MONEY SHOULD BE DEVOTED TO ACTIVISM HANSON SAYS AND LESS TO INDEX FUNDS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CALIFORNIA'S 75 BILLION PUBLIC PENSION FUND WANTS TO PUT MORE OF ITS MONEY BEHIND ITS SHAREHOLDER ACTIVISM AND MOVE AWAY FROM PASSIVELY BUYING BASKETS OF STOCKS TIED TO MARKET INDEXES INDEXATION WORKED WELL IN THE 1980S I'M NOT CONVINCED IT WILL WORK WELL IN THE 1990S DALE HANSON THE CHIEF EXECUTIVE OFFICER OF THE BIG CALIFORNIA PUBLIC EMPLOYEE RETIREMENT SYSTEM SAID YESTERDAY AT A CONFERENCE IN NEW YORK SPONSORED BY THE INSTITUTIONAL INVESTOR PROJECT OF THE COLUMBIA UNIVERSITY SCHOOL OF LAW I'D LIKE TO REDUCE THE NUMBER OF COMPANIES WE'RE HOLDING AND TAKE LARGER STAKES IN CORPORATIONS MR HANSON SAID AS ONE OF AMERICA'S BESTKNOWN ACTIVIST PENSION FUND MANAGERS MR HANSON ACKNOWLEDGED THERE IS A CONTRADICTION BETWEEN HIS POSITION THAT BIG INSTITUTIONAL INVESTORS SHOULD BE ACTIVE PLAYERS IN CORPORATE GOVERNANCE AND THE FACT THAT 80 OF THE 25 BILLION CALPERS INVESTS IN US STOCKS IS INVESTED IN INDEX FUNDS WALL STREET'S VERSION OF PAINTBYNUMBERS INSTEAD MR HANSON SUGGESTED HE WANTS TO TILT MORE TOWARD A DIFFERENT MODEL DUBBED RELATIONSHIP INVESTING AT YESTERDAY'S CONFERENCE SIMPLY PUT THE IDEA IS THAT BIG INSTITUTIONAL INVESTORS SHOULD BEHAVE LIKE CONCERNED OWNERS OF THE BUSINESSES IN WHICH THEY INVEST RATHER THAN FLITTING IN AND OUT OF STOCKS BASED ON SHORTTERM FACTORS MR HANSON CAUTIONED THAT HE AND HIS STAFF AT CALPERS ARE STILL GOING THROUGH AN INTROSPECTION ABOUT THE RIGHT INVESTMENT STRATEGY FOR THE 1990S MR HANSON SAID IN FEBRUARY THAT CALPERS WOULD INVEST MORE IN US STOCKS OVERALL WITH MORE MONEY TARGETED AT INDIVIDUAL COMPANIES CALPERS CURRENTLY OWNS STOCK IN 1018 COMPANIES MR HANSON SAID A MAJOR SHIFT IN CALPERS'S STRATEGY TOWARD LARGER HOLDINGS IN FEWER COMPANIES WON'T HAPPEN OVERNIGHT HE SAID MR HANSON HAS PRACTICED A FORM OF RELATIONSHIP INVESTING FOR SEVERAL YEARS BY USING HIS FUND'S MASSIVE HOLDINGS TO PUT UNDERPERFORMING CHIEF EXECUTIVE OFFICERS ON THE HOT SEAT INDEED MR HANSON'S SPEECH YESTERDAY CAME LESS THAN A DAY AFTER HE MET WITH EMBATTLED EASTMAN KODAK CO CHAIRMAN KAY R WHITMORE AND PRESENTED A REVIEW OF KODAK'S PERFORMANCE COMPARED WITH SIMILAR COMPANIES MR HANSON SAID HE WAS SATISFIED WITH THE MEETING BUT ADDED THAT HE WANTS KODAK'S BOARD TO BE MORE INVOLVED MR HANSON SAID CALPERS COULD MARRY ITS APPETITE FOR HARDNOSED ACTIVISM WITH TARGETED INVESTMENTS IN POORLY PERFORMING COMPANIES IN HOPES OF REAPING THE REWARDS OF A TURNAROUND AS A CASE IN POINT MR HANSON CITED ITT CORP RELATIONSHIP INVESTING IS BEING ABLE TO SAY TO HOWARD AIBEL ITT'S EXECUTIVE VICE PRESIDENT AND CHIEF LEGAL COUNSEL CONGRATULATIONS YOUR STOCK HIT 83' MR HANSON SAID WE BEGAN OUR CONVERSATIONS WITH ITT MANAGEMENT ABOUT 45 AGO 9305070105 930507 ECONOMY PRODUCTIVITY SLIPPED SLIGHTLY IN FIRST QUARTER BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A MIXTURE OF DROPPING CONSUMER DEMAND AND RISING RETAIL EMPLOYMENT DEFLATED WORKER PRODUCTIVITY IN THE FIRST QUARTER PRODUCTIVITY FOR BUSINESSES EXCLUDING FARMS FELL AT AN ANNUAL RATE OF 01 IN THE FIRST THREE MONTHS OF THE YEAR THE LABOR DEPARTMENT SAID THE TINY DECLINE WAS THE FIRST SINCE THE INITIAL QUARTER OF 1991 AND FOLLOWED TWO YEARS OF RISING PRODUCTIVITY AS BUSINESSES TRIED TO INCREASE OUTPUT WITHOUT ADDING TO THEIR PAYROLLS PRODUCTIVITY IS A MEASURE OF OUTPUT PER HOUR OF WORK ECONOMISTS CREDIT THE FIRST QUARTER DROPOFF TO RETAILERS' REACTING TO STRONG SALES IN THE FOURTH QUARTER OF 1992 WITH NEW HIRES IN EARLY 1993 SALES FELL HOWEVER AND PRODUCTIVITY DECLINED WITH THEM THE ECONOMY IS MOVING IN FITS AND STARTS SO THE RESULT IS PRODUCTIVITY GETS BATTERED SAID ROBERT DEDERICK CHIEF ECONOMIST FOR NORTHERN TRUST CO THE DROP FOLLOWS A REVISED FOURTHQUARTER SURGE AT A 41 ANNUAL RATE AND A 27 REVISED INCREASE FOR ALL OF 1992 THE QUARTERLY FIGURES ARE ADJUSTED FOR SEASONAL CHANGES MANUFACTURING PRODUCTIVITY CONTINUED TO EXPAND IN THE QUARTER CLIMBING AT A 48 RATE BOOSTED BY A SOARING 81 PACE IN AUTOMOBILES AND OTHER DURABLE GOODS THESE INCREASES SUGGEST THAT SERVICEORIENTED INDUSTRIES SUFFERED THE BRUNT OF THE FIRSTQUARTER SLIDE THE MANUFACTURERS WERE PRODUCING BUT THE GOODS WEREN'T GOING ANYWHERE THEY WERE ENDING UP IN INVENTORY MR DEDERICK SAID HARSH WINTER WEATHER ALSO PLAYED A PART IN THE DROP BY HOLDING DOWN SALES THIS IS ANOTHER WEATHERBEATEN STATISTIC SAID MAUREEN ALLYN CHIEF ECONOMIST FOR SCUDDER STEVENS & CLARK INC WHO BLAMED DROPPING RETAIL SALES FOR THE DECLINE SHE SAID SHE EXPECTS PRODUCTIVITY TO GROW 2 THIS YEAR SEPARATELY FIRSTTIME CLAIMS FOR STATE UNEMPLOYMENT BENEFITS WERE FLAT LAST WEEK ACCORDING TO THE LABOR DEPARTMENT INITIAL FILINGS FOR UNEMPLOYMENT WERE A SEASONALLY ADJUSTED 346000 UNCHANGED FROM THE PREVIOUS WEEK'S REVISED FIGURE THE FOURWEEK MOVING AVERAGE A BETTER INDICATOR OF UNEMPLOYMENT CLAIMS FELL 6750 FROM THE PREVIOUS WEEK TO AN AVERAGE OF 345000 9305070104 930507 TECHNOLOGY & HEALTH MEDIMMUNE DRUG IS SHOWN EFFECTIVE IN STUDY OF INFANT RESPIRATORY VIRUS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL DENVER RESEARCHERS FOUND THAT A MEDIMMUNE INC ANTIBODY PRODUCT IS EFFECTIVE AGAINST A VIRUS THAT INFECTS MORE THAN HALF OF ALL INFANTS IN THEIR FIRST YEAR THE VIRUS RESPIRATORY SYNCYTIAL VIRUS USUALLY PRODUCES MILD COLD SYMPTOMS IN HEALTHY CHILDREN BUT THE VIRUS CAN CAUSE MUCH MORE SEVERE INFECTIONS IT IS THE LEADING CAUSE OF VIRAL PNEUMONIA IN EARLY CHILDHOOD AND IS THOUGHT TO BE RESPONSIBLE FOR MORE THAN 91000 HOSPITALIZATIONS AND 4500 DEATHS EACH YEAR PREMATURE INFANTS AND CHILDREN UNDER THE AGE OF TWO WITH CONGENITAL HEART OR LUNG DISEASE ARE AT PARTICULARLY HIGH RISK TO SERIOUS INFECTIONS AND DEATH THE PRODUCT MEDIMMUNE'S RESPIVIR IS A PREPARATION OF ANTIBODIES EXTRACTED FROM HUMAN BLOOD DONORS THOSE ANTIBODIES BIND TO THE VIRUS AND PREVENT IT FROM INFECTING OTHER CELLS ACCORDING TO THE GAITHERSBURG MD COMPANY BUT THE PRODUCT IS EXPECTED TO BE EXPENSIVE WHICH MAY CAUSE THE MEDICAL COMMUNITY TO BALK AT ROUTINELY PRESCRIBING IT MEDIMMUNE IS AWAITING FOOD AND DRUG ADMINISTRATION APPROVAL FOR THE PRODUCT AND HASN'T YET SET A PRICE ITS HIGH PRELIMINARY ESTIMATE IS 3000 TO 4000 A YEAR FOR USE AS A PREVENTIVE AND 1500 AS A TREATMENT SAID MICHAEL D KISHBAUCH MEDIMMUNE EXECUTIVE VICE PRESIDENT HOSPITAL COSTS FOR SEVERE RESPIRATORY SYNCYTIAL VIRUS INFECTIONS BY COMPARISON RUN FROM 68000 TO 78000 MR KISHBAUCH SAID MOREOVER THE PRODUCT IS A FAIRLY SCARCE RESOURCE BECAUSE IT IS DERIVED FROM HUMAN BLOOD DONORS HE SAID IN A THREEYEAR STUDY FUNDED BY THE GOVERNMENT'S NATIONAL INSTITUTES OF HEALTH AND MEDIMMUNE RESEARCHERS STUDIED 249 HIGHRISK CHILDREN GIVING HALFMONTHLY RESPIVIR TREATMENTS DURING THE PEAK INFECTION SEASON OF DECEMBER THROUGH APRIL FOR THREE YEARS THE OTHER HALF DIDN'T RECEIVE ANY TREATMENT SIX CHILDREN ALL OF WHOM RECEIVED THE ANTIBODY TREATMENT DIED DURING THE STUDY BUT THE DEATHS FIVE OF WHICH WERE AMONG CHILDREN WITH HEART PROBLEMS DON'T APPEAR LINKED TO THE TREATMENT SAID JESSIE R GROOTHUIS THE LEAD INVESTIGATOR IN THE STUDY AND A RESEARCHER AT THE UNIVERSITY OF COLORADO HEALTH SCIENCES CENTER A FOLLOWUP STUDY HOWEVER WILL EXAMINE THE PRODUCT'S EFFECT SPECIFICALLY ON CHILDREN WITH CARDIAC PROBLEMS SHE SAID 9305070103 930507 MARKETING & MEDIA ADVERTISING NUTRI/SYSTEM'S RIVALS CAPITALIZE ON CHAIN'S FINANCIAL INDIGESTION BY KEVIN GOLDMAN THE FINANCIAL WOES THAT THREATEN TO CLOSE NUTRI/SYSTEM DIET CENTERS HAVE SET OFF AN ADVERTISING FEEDING FRENZY AMONG RIVALS HOPING TO SNARE ITS CALORIECOUNTING CUSTOMERS NUTRI/SYSTEM BASED IN BLUE BELL PA HAD ITS CASH AND BANK ACCOUNTS SEIZED LAST WEEK THE COMPANY CLOSED ITS HEADQUARTERS AND 283 COMPANYOWNED WEIGHT LOSS CENTERS FURTHERMORE IT HASN'T PROVIDED ITS 857 FRANCHISES WITH SPECIAL PREPACKAGED MEALS FOR A WEEK NUTRI/SYSTEM'S TWO CHIEF COMPETITORS JENNY CRAIG AND WEIGHT WATCHERS WASTED NO TIME IN PRODUCING ADS THAT MENTIONED THE FINANCIALLY AILING DIET CHAIN BY NAME AND OFFERED CUSTOMERS THE CHANCE TO SWITCH TO THEIR DIET PLANS THE QUICK RESPONSE BY JENNY CRAIG AND WEIGHT WATCHERS A SUBSIDIARY OF HJ HEINZ IS VIEWED AS BOTH CLEVER AND OPPORTUNISTIC THIS IS AN ATTEMPT TO SWOOP IN BEFORE OTHER COMPETITORS AND SKIM THE MARKETPLACE FOR NEW CUSTOMERS SAYS STEPHEN A GREYSER PROFESSOR OF CONSUMER MARKETING AT THE HARVARD BUSINESS SCHOOL JENNY CRAIG BASED IN DEL MAR CALIF HAS NEWSPAPER AND TELEVISION ADS RUNNING THIS WEEK THAT OFFER AN OPEN LETTER TO NUTRI/SYSTEM CLIENTS THE ADS SAY YOU MAY HAVE READ THE PUBLISHED REPORTS OF NUTRI/SYSTEM BEING FORCED TO CLOSE MANY OF ITS WEIGHTLOSS CENTERS DUE TO FINANCIAL DIFFICULTIES PERHAPS ONE OF THESE CENTERS IS YOURS THE COMPANY THEN OFFERS STRANDED NUTRI/SYSTEM CUSTOMERS THE CHANCE TO WATCH THEIR WAISTLINE AT JENNY CRAIG CENTERS WITH NO ADDITIONAL SERVICE FEE THE ADS FROM WPP GROUP'S J WALTER THOMPSON WERE PLACED NOT ONLY TO GET NEW CUSTOMERS BUT TO DISPEL ANY NOTION FROM CONSUMERS THAT THE DIET BUSINESS IN GENERAL WAS TAKING IT ON THE CHIN FINANCIALLY WE FELT IT WAS IMPORTANT TO MAKE IT CLEAR THAT THIS WAS NUTRI/SYSTEM'S PROBLEM AND NOT INDUSTRYWIDE SAYS JAMES PALMER SENIOR VICE PRESIDENT OF MARKETING AT JENNY CRAIG IN AN UNUSUAL MOVE FOR A PITCH AIMED AT SCALEWATCHERS INSTEAD OF STOCKPICKERS JENNY CRAIG EVEN PROUDLY TRUMPETS ITS OWN FINANCIAL HEALTH IN ITS ADS JENNY CRAIG WILL GIVE YOU PEACE OF MIND IT IS A DEBTFREE 500 MILLION NEW YORK STOCK EXCHANGE COMPANY WITH 10 YEARS OF PROVEN SUCCESS THE PRINT ADS FROM WEIGHT WATCHERS BASED IN JERICHO NY ARE EVEN MORE BITING THERE IS A MOCKUP ARTICLE WITH THE HEADLINE NUTRISYSTEM IS SHUTTING 283 CENTERS FOLLOWED BY WEIGHT WATCHERS' OWN HEADLINE THE NEWS IS NOT ALL BAD THE AD INVITES THOSE AFFECTED BY THE CLOSING OF MANY NUTRI/SYSTEM CENTERS DON'T WORRY WEIGHT WATCHERS SAYS IT IS ACTING OUT OF BENEVOLENCE NOT AN INSATIABLE APPETITE FOR NEW CLIENTS IT'S IMPORTANT TO SAY TO PEOPLE THAT THEY SHOULDN'T GIVE UP DIETING SIMPLY BECAUSE THEIR CENTER IS CLOSING SAYS JEFF MYERS VICE PRESIDENT OF INTEGRATED MARKETING COMMUNICATIONS AT WEIGHT WATCHERS THE ADS WERE PRODUCED BY THE BETHESDA MD AGENCY EARLE PALMER BROWN AND MR MYERS DOESN'T DISCOUNT THE POSSIBILITY THE CAMPAIGN WILL EXTEND TO TELEVISION AND RADIO COMPETITION IN THE DIET CENTER BUSINESS IS BY NATURE CUTTHROAT PROF GREYSER FROM HARVARD SAYS DIETCENTER CUSTOMERS ARE SHORTTERM CLIENTS ONCE THEY LOSE THE FAT THEY'RE OUT THE DOOR COMPANIES SUCH AS JENNY CRAIG AND NUTRI/SYSTEM CONSTANTLY HAVE TO REPLENISH THEIR CLIENT ROSTERS THEY'RE ALWAYS FIGHTING FOR THEIR SHARE OF THE MARKET AND THE REWARDS FOR GRABBING MARKET SHARE FROM NUTRI/SYSTEM CAN BE CONSIDERABLE EACH NUTRI/SYSTEM COMPANYOWNED STORE HAD AVERAGE REVENUE LAST YEAR OF 500000 AND EACH FRANCHISE HAD REVENUE OF 350000 ACCORDING TO RON ROTTER AN ANALYST WITH SEIDLER AMDEC SECURITIES IN LOS ANGELES THE BIG LOSER IN THIS AD BLITZ APPEARS TO BE THE NEW YORK AGENCY LOTUS MINARD PATTON MCIVER WHICH HAS HANDLED THE NUTRI/SYSTEM ACCOUNT SINCE 1991 THE ACCOUNT SPENT 39 MILLION LAST YEAR ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TRACKS AD SPENDING FRANCHISEES SAID EARLIER THIS WEEK HOWEVER THAT THEY HAD TO CHIP IN 27 MILLION LAST YEAR TO SHORE UP THE CHAIN'S FLAGGING ADVERTISING EFFORTS JENNY CRAIG OUTSPENT NUTRI/SYSTEM WITH 48 MILLION AND WEIGHT WATCHERS SPENT 25 MILLION LAST YEAR THE LATEST ADS FROM NUTRI/SYSTEM ADVISED CUSTOMERS CHANGE THE HEAD AND THE BODY IS EASY BROADCAST ADS FEATURED AN 800NUMBER THAT ENDED WITH THIN TO ENROLL IN THE NUTRI/SYSTEM PROGRAM SATISFIED CUSTOMERS PROMOTED THE PROGRAM DURING WACKY RADIO MORNING SHOWS BUT NUTRI/SYSTEM RECEIVED BAD PUBLICITY A FEW YEARS AGO WHEN SEVERAL VICTIMS OF GALLBLADDER DISEASE BLAMED THEIR NUTRI/SYSTEM DIETS IN LAWSUITS THE FRANCHISER WON ALL OF THE 18 SUITS THAT WENT TO TRIAL AND SETTLED HUNDREDS MORE ANY ADS RUNNING NOW ARE FROM THE FRANCHISE OPERATORS AND NOT THE CORPORATION SAYS RICHARD V ELLINGTON EXECUTIVE VICE PRESIDENT AT LOTUS MINARD NUTRI/SYSTEM FOUNDED IN 1971 WAS THE OBJECT OF A LEVERAGED BUYOUT IN 1986 TAKING ON HEAVY DEBT REVENUES HOWEVER DIDN'T GROW ACCORDING TO EXPECTATIONS FRANCHISEES ARE HOPING A NEW OWNER WILL PUT THE COMPANY BACK ON TRACK BUT A DEAL WITH ONE INVESTMENT GROUP COLLAPSED LAST WEEKEND LATE YESTERDAY US BANKRUPTCY COURT JUDGE DAVID A SCHOLL IN PHILADELPHIA SAID HE WOULD APPOINT A TEMPORARY TRUSTEE AT NOON TODAY IF THE COMPANY AND ITS BANKS AREN'T ABLE TO HAMMER OUT AN AGREEMENT FOR AN INVESTMENT GROUP TO PURCHASE NUTRI/SYSTEM THE APPOINTMENT OF A TRUSTEE WOULD ENABLE FOOD TO BE DELIVERED TO NUTRI/SYSTEM FRANCHISES BY NEXT WEEK A FRANCHISEE SAID THE PHONES WEREN'T ANSWERED THROUGHOUT YESTERDAY AT NUTRI/SYSTEM'S HEADQUARTERS INSTEAD AN OUTDATED MESSAGE INFORMED CALLERS OF THE COMPANY'S OPERATING HOURS IT ISN'T KNOWN HOW MANY NUTRI/SYSTEM CUSTOMERS HAVE ALREADY DEFECTED TO THE COMPETITION I'M IMPRESSED BY THE SWIFTNESS AND CLARITY OF THE ADS SAYS MR GREYSER WHO SAW AND CLIPPED THE JENNY CRAIG AD TO SHOW HIS STUDENTS NOW WHAT COUNTS IS WHETHER THE CUSTOMERS WHO SWITCH WILL BE TREATED IN THE SAME WAY THAT THE ADS SUGGEST THEY WOULD BE PLACEBASED MEDIA WILL BE EVEN HARDER TO ESCAPE NEXT MONTH WHEN A NEW TELEVISION NETWORK STARTS FOLLOWING TOURISTS ON THEIR CARIBBEAN VACATIONS THE CARIBBEAN NETWORK BASED IN PORTLAND MAINE OF ALL PLACES PLANS TO START OFFERING PROGRAMMING VIA SATELLITE DISH TO ITS AFFILIATES CARIBBEAN RESORTS AND CRUISE SHIPS BY JUNE 1 IT ANTICIPATES 20 OF ITS REVENUES WILL COME FROM AFFILIATE FEES WITH THE REST COMING FROM NATIONAL AND CARIBBEANREGION ADVERTISING THE NETWORK DOESN'T HAVE ADVERTISERS SIGNED UP YET BUT IT DOES HAVE AGREEMENTS TO BUY PROGRAMMING FROM CNBC THE CABLE BUSINESSNEWS UNIT OF GENERAL ELECTRIC'S NBC NETWORK AND FROM TIME WARNER'S E ENTERTAINMENT CABLE NETWORK SAID COLIN AJ CHISHOLM III A FORMER EXECUTIVE WITH TURNER BROADCASTING AND UNITED ARTISTS TELEVISION AND THE FOUNDER OF THE CARIBBEAN NETWORK THE NETWORK PLANS TO AIR PROGRAMS THAT CAN BE WATCHED FOR JUST A FEW MINUTES AT A TIME MR CHISHOLM SAID RESORT OPERATORS IT SEEMS DON'T WANT GUESTS HIDING OUT IN FRONT OF THE TUBE WHEN THEY COULD BE GAMBLING SHOPPING OR BUYING DRINKS AT THE BAR THEY DON'T WANT PEOPLE IN THEIR ROOMS WATCHING A TWOHOUR HBO MOVIE MR CHISHOLM SAID THE CARIBBEAN NETWORK CALCULATES THAT THERE ARE MORE THAN 140000 ROOMS WITH TV SETS IN CARIBBEAN RESORTS AND CRUISE SHIPS GREY GREY ADVERTISING REPORTED FIRSTQUARTER NET INCOME OF 32 MILLION OR 254 A SHARE A 5 INCREASE FROM 31 MILLION OR 238 A SHARE A YEAR AGO QUARTERLY REVENUE INCREASED TO 1315 MILLION FROM 1255 MILLION IN THE YEAREARLIER QUARTER QUARTERLY BILLINGS WERE 8773 MILLION VS 8374 MILLION ACCOUNTS HOUSTON EFFLER HAMPEL & STEFANIDES NEW YORK WON THE 5 MILLION ACCOUNT OF BASF CORP PREVIOUSLY AT THE NOW DEFUNCT SHOP GEER DUBOIS NEW YORK SPECTRUM HOLOBYTE INC THE CLOSELY HELD MANUFACTURER OF VIDEOGAME SOFTWARE SUCH AS TETRIS TAPPED MANDELBAUM MOONEY ASHLEY SAN FRANCISCO TO HANDLE ITS 5 MILLION ACCOUNT THE ALAMEDA CALIF COMPANY PREVIOUSLY HANDLED THE ACCOUNT IN HOUSE 9305070102 930507 POLITICS & POLICY BOSNIA PRIMER EXPLAINS STEPS CLINTON MUST TAKE ON THE ROAD TO INTERVENTION BY ROBERT S GREENBERGER AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS DETERMINED TO USE MILITARY PRESSURE IF NECESSARY TO FORCE THE BOSNIAN SERBS TO ACCEPT A UNITED NATIONS PEACE PLAN BUT FIRST HE MUST BRING ALONG THE AMERICAN PEOPLE CONGRESS AND US ALLIES THE WHITE HOUSE IS AWARE THAT THERE IS AT BEST LUKEWARM DOMESTIC SUPPORT FOR DEPLOYING US FORCES IN THE BALKANS BUT SO FAR MR CLINTON HAS DONE LITTLE TO PREPARE THE PUBLIC FOR US MILITARY INTERVENTION THERE'S MUCH THAT NEEDS EXPLAINING STARTING WITH THE FUNDAMENTAL GOAL OF ANY PROPOSED MILITARY ACTION ALONG WITH WHAT FOLLOWUP STEPS MR CLINTON IS PREPARED TO TAKE IF LIMITED MILITARY PRESSURE PROVES INSUFFICIENT THERE'S A SENSE OF TREPIDATION THAT GOES BEYOND CAUTION ON THE PART OF MANY MEMBERS SAYS REP FRANK MCCLOSKEY AN INDIANA DEMOCRAT WHO SUPPORTS AIR STRIKES I WOULD SAY A LOT OF WORK NEEDS TO BE DONE HERE ARE SOME OF THE QUESTIONS MR CLINTON NEEDS TO CONSIDER BEFORE PROCEEDING WITH HIS THORNIEST FOREIGN POLICY INITIATIVE IS THERE A WHITE HOUSE PLAN TO PREPARE THE PUBLIC FOR THE DEPLOYMENT OF FORCE IN THE BALKANS AT THE MOMENT WHITE HOUSE AIDES APPEAR TO BE RELYING ON OCCASIONAL UTTERANCES BY MR CLINTON TO ALERT PEOPLE TO THE STAKES IN THE BOSNIAN CRISIS ONCE A DECISION IS MADE HOWEVER MR CLINTON IS ALMOST CERTAIN TO TAKE A HIGHER PROFILE OPTIONS INCLUDE TOWN HALL MEETINGS AND PUBLIC SPEECHES AROUND THE COUNTRY MORE TRADITIONAL FORUMS ALSO ARE UNDER CONSIDERATION INCLUDING A NATIONALLY TELEVISED ADDRESS OR EVEN A SPEECH TO A JOINT SESSION OF CONGRESS DOES MR CLINTON NEED CONGRESSIONAL SUPPORT BEFORE TAKING POSSIBLE MILITARY ACTION SEN SAM NUNN D GA SAID THE ADMINISTRATION WOULD NEED TO GET CONGRESSIONAL APPROVAL BEFORE MILITARY ACTION IS TAKEN INDEED MANY LAWMAKERS EXPECT THE CHANCE TO DEBATE AND VOTE ON ANY BALKAN MILITARY STRIKES THE SAME WAY THEY CONSIDERED WHETHER THE BUSH ADMINISTRATION SHOULD LAUNCH THE GULF WAR SENIOR ADMINISTRATION OFFICIALS WHO HELD A CONGRESSIONAL BRIEFING ON BOSNIA CAME CLOSE TO SAYING BUT DIDN'T STATE EXPLICITLY THAT CONGRESS WOULD PLAY SUCH A ROLE IN THE DECISION ACCORDING TO REP DICK DURBIN AN ILLINOIS DEMOCRAT WHO ATTENDED THE SESSION PART OF GETTING CONGRESSIONAL SUPPORT IS ASSURING LAWMAKERS THAT AIR STRIKES WON'T BE THE BEGINNING OF A MILITARY QUAGMIRE IF EARLY LIMITED STRIKES DON'T WORK YOU OBVIOUSLY HAVE TO BACK IT UP WITH GROUND TROOPS SAYS REP IKE SKELTON A MISSOURI DEMOCRAT THE PRESIDENT HAS RULED OUT GROUND FORCES FOR USES OTHER THAN PEACEKEEPING BUT HE HASN'T SAID WHAT HE WOULD WANT TO DO IF THE AIR ATTACKS FAIL TO PRODUCE DESIRED RESULTS DOES MR CLINTON NEED INTERNATIONAL AUTHORITY TO BEGIN ANY USLED MILITARY ACTION YES THE WHITE HOUSE HAS DANCED AROUND THIS ONE IN RECENT WEEKS BUT WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS SAID CLEARLY WE HAVE TO HAVE ANOTHER UN RESOLUTION IF FURTHER ACTION IS CONTEMPLATED WHAT IS ENTAILED IN THE US MILITARY OPTION PRESIDENT CLINTON DECIDED LAST WEEKEND THAT IF THE PEACE EFFORT FAILED THE US WOULD EXECUTE A TWOPRONGED MILITARY OPTION IT WOULD LIFT AN ARMS EMBARGO SO THE US AND ITS ALLIES COULD SUPPLY AND TRAIN THE BOSNIAN MUSLIMS AND IN THE PERIOD OF ABOUT TWO MONTHS IT WOULD TAKE TO DO THAT PROVIDE PROTECTIVE AIR COVER CAN THE US DO THIS ON ITS OWN THE US WON'T ACT ALONE AND WILL DEVOTE CONSIDERABLE ENERGY TO WINNING THE SUPPORT OF THE ALLIES SECRETARY OF STATE WARREN CHRISTOPHER HAS BEEN ON SUCH A MISSION IN EUROPE THIS WEEK BUT AT MOST STOPS THE ATMOSPHERE WAS FILLED WITH FALSE HOPES THAT THE BOSNIAN SERBS WOULD ACCEPT THE UN PLAN THE BRITISH AND FRENCH WHO HAVE PEACEKEEPING TROOPS ON THE GROUND OPPOSE LIFTING THE ARMS EMBARGO MR CHRISTOPHER IS TRYING TO REASSURE THE EUROPEANS THAT THERE ARE WAYS TO LIMIT THE RISKS TO THEIR TROOPS THEN THERE'S THE PROBLEM OF ACTUALLY GETTING THE ARMS THERE THE US BELIEVES IT WILL NEED TO SHIP IN ANTITANK WEAPONS ARTILLERY TUBES AND EVEN SOME TANKS SOME OF THAT CAN BE AIRDROPPED BUT THE HEAVY SHIPMENTS BEING CONTEMPLATED WOULD REQUIRE OVERLAND TRANSPORT THAT MEANS THE US WILL NEED SOME COOPERATION FROM THE CROATS WHO HOLD MOST OF THE COASTLINE ALONG THE ADRIATIC AND WHO ARE BELIEVED TO HAVE SEIZED ABOUT HALF THE WEAPONS THAT HAVE BEEN SENT TO THE BOSNIAN MUSLIMS IN VIOLATION OF THE EMBARGO ONCE THE WEAPONS ACTUALLY REACH THE BOSNIAN MUSLIMS THEY'LL NEED SOME TRAINING THAT REQUIRES INSERTING US SPECIAL FORCES WHO SPECIALIZE IN THAT IF INTERNATIONAL SUPPORT DOESN'T MATERIALIZE THE US WOULD HAVE TO CONSIDER A FURTHER TIGHTENING OF ECONOMIC SANCTIONS AGAINST SERBIA INCLUDING A BLOCKADE WHERE DO THE AIR STRIKES COME IN DURING THE TWO MONTHS THE MILITARY THINKS IT NEEDS TO DELIVER WEAPONS TO THE MUSLIMS AND TO TRAIN THEM TO USE THEM THE SERBS COULD CONTINUE GOBBLING UP TERRITORY BEYOND THE 70 OF BOSNIA THEY ALREADY CONTROL TO COUNTER THAT THE US WOULD PROBABLY RESORT TO AIR STRIKES THERE IS MUCH TALK IN THE PENTAGON ESPECIALLY WITHIN THE AIR FORCE OF THE NEED TO DEMONSTRATE TO THE BOSNIAN SERBS THE DEVASTATING EFFECT OF AIR POWER BUT EVEN IF NO DEMONSTRATION STRIKES ARE CARRIED OUT THE CONTEMPLATED AIR COVER FOR THE MUSLIMS ALMOST CERTAINLY WILL RESULT IN SOME TACTICAL STRIKES TO PROTECT THEM IF NOTHING ELSE SAYS ONE ANALYST SERB COMMANDERS WILL TEST US FORCES TO SEE IF THEY REALLY ARE OPERATING UNDER TOUGHER RULES OF ENGAGEMENT THAN THE UN PEACEKEEPING FORCES HAVE HAD WILL THIS MILITARY STRATEGY WORK OPPONENTS OF MILITARY INTERVENTION HAVE THEIR DOUBTS FIRST THERE IS MUCH DEBATE WITHIN THE PENTAGON AND ELSEWHERE ABOUT WHETHER US AIRCRAFT REALLY CAN DETER FURTHER SERB AGGRESSION IT STRIKES ME AS IFFY SAYS RETIRED ARMY COL HARRY SUMMERS A FRIEND OF JOINT CHIEFS CHAIRMAN GEN COLIN POWELL IN THE KOREAN WAR 250000 CHINESE TROOPS MOVED DOWN FROM MANCHURIA DESPITE OUR TOTAL CONTROL OF THE AIR AND WE WERE NEVER ABLE TO STOP GROUND MOVEMENT IN VIETNAM SECOND ARMING THE BOSNIANS SIMPLY MAY NOT STOP THE SERBS THE BOSNIAN MUSLIMS AREN'T AN ARMY AND THEY'RE FACING THE YUGOSLAV ARMY SAYS AN AIR FORCE TARGETING EXPERT HANDING THEM A GUN AND PITTING THEM AGAINST THE SERBS ISN'T GOING TO MAKE IT EVEN LIKE MANY OTHERS IN THE AIR FORCE HE ARGUES THE MILITARY OPTION BEING CONSIDERED BY THE CLINTON ADMINISTRATION IS TOO MODEST THESE OFFICERS ARGUE AT PENTAGON MEETINGS THAT IF WE TAKE MILITARY ACTION WE SHOULD TAKE THE WAR TO THE SERBS BY INTERDICTING SUPPLY LINES OR LAUNCHING PUNISHMENT STRIKES AGAINST THEM IS THERE ANY RECENT PRECEDENT FOR A MILITARY ACTION LIKE THE ONE PRESIDENT CLINTON ENVISIONS NOT REALLY IN THE 1980S THE US ARMED THE AFGHAN REBELS THE NICARAGUAN CONTRAS AND THE ANGOLAN ANTIMARXISTS BUT DIDN'T PROVIDE AIR COVER TO THEM THE US INTERVENED IN LEBANON'S CIVIL WAR IN 1983 BUT WITH AIR STRIKES AND GROUND FORCES THE DISASTROUS RESULT WAS 241 SERVICEMEN KILLED THE CLOSEST RECENT MILITARY INTERVENTION MAY BE SOMALIA WHERE TENS OF THOUSANDS OF US TROOPS BACKED BY NAVAL AIR POWER QUICKLY SHUT DOWN FACTIONAL FIGHTING BUT THE SERBS HAVE FAR MORE FIREPOWER ARE BETTER ORGANIZED AND OPERATE IN A FAR MORE DIFFICULT TERRAIN SO WHAT SHOULD THE US DO IF THE MILITARY PLAN DOESN'T WORK ACCORDING TO ONE SCHOOL OF THOUGHT THE US THEN WOULD DISENGAGE HAVING TRIED TO DO THE HONORABLE THING PULLING OUT WOULDN'T CAUSE MAJOR DIPLOMATIC PROBLEMS ARGUES WILLIAM ROSENAU A FORMER PENTAGON SPECIALIST IN LOWINTENSITY CONFLICT THE WHOLE CREDIBILITY QUESTION SEEMS TO ME RATHER VAGUE HE SAYS WHO ARE WE LOSING FACE WITH DURING HIS CONFIRMATION HEARINGS DEFENSE SECRETARY LES ASPIN SUGGESTED THAT WITH THE COLD WAR OVER THE US SHOULD BE MORE FREE TO PULL AWAY FROM MILITARY ENGAGEMENTS RATHER THAN ESCALATE BUT OTHERS SAY THAT GETTING OUT WON'T BE SO EASY THEY REASON THAT THE NEXT STEP WOULD BE A DEEPENING OF US INVOLVEMENT ESPECIALLY IF US FLIERS ARE CAPTURED IF THE STRIKES DON'T WORK THE PRESSURE IS GOING TO BE ON TO TAKE THE NEXT STEP SAYS ONE PENTAGON PLANNER OBVIOUSLY YOU'LL HAVE AN ESCALATION DYNAMIC AT WORK BUT IF THE US INVOLVEMENT DEEPENS SUPPORT AT HOME COULD WITHER WHEN THE BOMBING STARTS AND THOSE NOW CHANTING FOR MILITARY INVOLVEMENT SEE THE ENORMOUS COLLATERAL DAMAGE AGAINST CIVILIANS AND THE SCANT IMPACT ON THE ARTILLERY THERE WILL BE AN IMMEDIATE ABANDONMENT OF SUPPORT FOR THE ADMINISTRATION WARNS REP ROBERT TORRICELLI A NEW JERSEY DEMOCRAT 9305070101 930507 PENTAGON CONTRACTORS OFTEN OFFER CASH TO HELP FOREIGN FIRMS COMPETE IN US BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL US DEFENSE COMPANIES IN ORDER TO SELL WEAPONS ABROAD OFTEN OFFER DIRECT FINANCIAL ASSISTANCE TO FOREIGN CIVILIAN COMPANIES TO HELP THEM SELL THEIR GOODS MORE EASILY IN THE US AND ELSEWHERE GENERAL ACCOUNTING OFFICE AUDITORS HAVE FOUND THE ISSUE OF DIRECT FINANCING AS PART OF INDIRECT OFFSET ARRANGEMENTS HAS SPARKED CONCERN IN CONGRESS AND THE CLINTON ADMINISTRATION WHERE OFFICIALS SAY THEY'RE WORRIED THAT THE ACTIONS BY DEFENSE CONTRACTORS MAY UNFAIRLY CAUSE OTHER US INDUSTRIES TO LOSE BUSINESS EVENTUALLY THE FINDING COULD LEAD TO NEW CONSTRAINTS ON CONTRACTORS WHICH ARE PRESSING HARD FOR FOREIGN SALES TO COUNTER DECLINES IN US MILITARY SPENDING THE GAO'S FINDING WAS DELIVERED LAST WEEK IN A 23PAGE PRELIMINARY REPORT TO SEN RUSSELL D FEINGOLD A WISCONSIN DEMOCRAT WHO ORDERED AN INVESTIGATION OF NORTHROP CORP PRACTICES IN FEBRUARY HARNISCHFEGER INDUSTRIES INC A WISCONSIN MAKER OF PAPERPRODUCING MACHINES ALLEGED IN A COMPLAINT TO SEN FEINGOLD THAT NORTHROP HAD OFFERED TO PAY AS MUCH AS 15 MILLION TO A FINNISH RIVAL TO HELP IT WIN A CONTEST TO SELL A 50 MILLION PAPER MACHINE IN THE US LOS ANGELESBASED NORTHROP CONFIRMS THAT IT MADE AN OFFER TO PAY ABOUT 12 MILLION TO VALMET CORP OF FINLAND AS PART OF NORTHROP'S ROLE AS A COPRODUCER OF THE F/A18 JET THE OFFER WAS PROPER AND LEGAL A NORTHROP SPOKESMAN SAYS THE FIGHTERBOMBER IS ASSEMBLED BY LEAD CONTRACTOR MCDONNELL DOUGLAS CORP OF ST LOUIS NORTHROP BUILDS ABOUT 40 OF THE JET INCLUDING MUCH OF THE FUSELAGE LAST YEAR MCDONNELL DOUGLAS WON A CONTRACT TO PRODUCE 64 OF THE JETS FOR FINLAND IN A SALE VALUED AT ABOUT 3 BILLION AS PART OF THAT SALE THE US PRODUCERS OF THE JET AGREED TO ASSIST FINNISH COMPANIES IN LANDING ABOUT 23 BILLION IN SALES IN THE US OF GOODS RANGING FROM CARS TO INDUSTRIAL PRODUCTS SUCH INDIRECTOFFSET ARRANGEMENTS ARE ROUTINELY AND LEGALLY USED BY US DEFENSE COMPANIES TO INDUCE FOREIGN SALES IN INCREASINGLY TOUGH COMPETITION AGAINST OVERSEAS RIVALS INDIRECTOFFSET AGREEMENTS ARE UNREGULATED AND GENERALLY CALL FOR THE SELLER TO HELP ARRANGE SALES OF NONMILITARY GOODS AND SERVICES PRODUCED BY THE PURCHASING COUNTRY DIRECTOFFSET DEALS GENERALLY ARE MONITORED BY THE U S GOVERNMENT AND ALLOW FOREIGN BUYERS TO MAKE PARTS OR ASSEMBLE THE WEAPON THEY BOUGHT US DEFENSE COMPANIES SAY ALL OFFSET AGREEMENTS ARE A NECESSARY INGREDIENT OF WINNING SALES IN WHICH FOREIGN RIVALS OFFER SIMILAR INCENTIVES THEY HAVE SAID IN THE PAST THAT THEY RARELY USE CASH BUYDOWNS OF THE COST OF FOREIGN GOODS IN INDIRECTOFFSET DEALS AS NORTHROP DID IN ITS OFFER TO VALMET BUT IN ITS REVIEW OF OFFSET DEALS THE GAO HAS FOUND THAT NORTHROP AND OTHER COMPANIES COMMONLY OFFER THIRD PARTIES INCENTIVE OR ASSURANCE FEES OR OTHER FORMS OF COMPENSATION TO INDUCE SELECTION OF FOREIGN PRODUCTS TO SATISFY OFFSET OBLIGATIONS SEN FEINGOLD SAYS READING A SECTION OF THE GAO REPORT DELIVERED TO HIS OFFICE US DEFENSE COMPANIES IN ORDER TO SELL WEAPONS ABROAD OFTEN OFFER DIRECT FINANCIAL ASSISTANCE TO FOREIGN CIVILIAN COMPANIES TO HELP THEM SELL THEIR GOODS MORE EASILY IN THE US AND ELSEWHERE GENERAL ACCOUNTING OFFICE AUDITORS HAVE FOUND THE ISSUE OF DIRECT FINANCING AS PART OF INDIRECT OFFSET ARRANGEMENTS HAS SPARKED CONCERN IN CONGRESS AND THE CLINTON ADMINISTRATION WHERE OFFICIALS SAY THEY'RE WORRIED THAT THE ACTIONS BY DEFENSE CONTRACTORS MAY UNFAIRLY CAUSE OTHER US INDUSTRIES TO LOSE BUSINESS EVENTUALLY THE FINDING COULD LEAD TO NEW CONSTRAINTS ON CONTRACTORS WHICH ARE PRESSING HARD FOR FOREIGN SALES TO COUNTER DECLINES IN US MILITARY SPENDING THE GAO'S FINDING WAS DELIVERED LAST WEEK IN A 23PAGE PRELIMINARY REPORT TO SEN RUSSELL D FEINGOLD A WISCONSIN DEMOCRAT WHO ORDERED AN INVESTIGATION OF NORTHROP CORP PRACTICES IN FEBRUARY HARNISCHFEGER INDUSTRIES INC A WISCONSIN MAKER OF PAPERPRODUCING MACHINES ALLEGED IN A COMPLAINT TO SEN FEINGOLD THAT NORTHROP HAD OFFERED TO PAY AS MUCH AS 15 MILLION TO A FINNISH RIVAL TO HELP IT WIN A CONTEST TO SELL A 50 MILLION PAPER MACHINE IN THE US LOS ANGELESBASED NORTHROP CONFIRMS THAT IT MADE AN OFFER TO PAY ABOUT 12 MILLION TO VALMET CORP OF FINLAND AS PART OF NORTHROP'S ROLE AS A COPRODUCER OF THE F/A18 JET THE OFFER WAS PROPER AND LEGAL A NORTHROP SPOKESMAN SAYS THE FIGHTERBOMBER IS ASSEMBLED BY LEAD CONTRACTOR MCDONNELL DOUGLAS CORP OF ST LOUIS NORTHROP BUILDS ABOUT 40 OF THE JET INCLUDING MUCH OF THE FUSELAGE LAST YEAR MCDONNELL DOUGLAS WON A CONTRACT TO PRODUCE 64 OF THE JETS FOR FINLAND IN A SALE VALUED AT ABOUT 3 BILLION AS PART OF THAT SALE THE US PRODUCERS OF THE JET AGREED TO ASSIST FINNISH COMPANIES IN LANDING ABOUT 23 BILLION IN SALES IN THE US OF GOODS RANGING FROM CARS TO INDUSTRIAL PRODUCTS SUCH INDIRECTOFFSET ARRANGEMENTS ARE ROUTINELY AND LEGALLY USED BY US DEFENSE COMPANIES TO INDUCE FOREIGN SALES IN INCREASINGLY TOUGH COMPETITION AGAINST OVERSEAS RIVALS INDIRECTOFFSET AGREEMENTS ARE UNREGULATED AND GENERALLY CALL FOR THE SELLER TO HELP ARRANGE SALES OF NONMILITARY GOODS AND SERVICES PRODUCED BY THE PURCHASING COUNTRY DIRECTOFFSET DEALS GENERALLY ARE MONITORED BY THE U S GOVERNMENT AND ALLOW FOREIGN BUYERS TO MAKE PARTS OR ASSEMBLE THE WEAPON THEY BOUGHT US DEFENSE COMPANIES SAY ALL OFFSET AGREEMENTS ARE A NECESSARY INGREDIENT OF WINNING SALES IN WHICH FOREIGN RIVALS OFFER SIMILAR INCENTIVES THEY HAVE SAID IN THE PAST THAT THEY RARELY USE CASH BUYDOWNS OF THE COST OF FOREIGN GOODS IN INDIRECTOFFSET DEALS AS NORTHROP DID IN ITS OFFER TO VALMET BUT IN ITS REVIEW OF OFFSET DEALS THE GAO HAS FOUND THAT NORTHROP AND OTHER COMPANIES COMMONLY OFFER THIRD PARTIES INCENTIVE OR ASSURANCE FEES OR OTHER FORMS OF COMPENSATION TO INDUCE SELECTION OF FOREIGN PRODUCTS TO SATISFY OFFSET OBLIGATIONS SEN FEINGOLD SAYS READING A SECTION OF THE GAO REPORT DELIVERED TO HIS OFFICE A GAO SPOKESWOMAN DECLINES TO COMMENT THE NORTHROP SPOKESMAN SAYS THAT THERE ARE MANY KINDS OF INDIRECT OFFSETS AND THAT THIS PARTICULAR VARIATION WAS FIRST CONSIDERED LATE LAST YEAR A MCDONNELL DOUGLAS SPOKESMAN ADDS THAT FINANCIAL INCENTIVES ARE ONLY ONE OF THE VARIOUS OPTIONS THAT ARE EMPLOYED IN THE RECENT CASE THAT SPARKED THE GAO INVESTIGATION US BUYER INTERNATIONAL PAPER CORP EVENTUALLY BOUGHT THE MACHINE PRODUCED BY HARNISCHFEGER'S BELOIT CORP SUBSIDIARY BUT BELOIT SAYS IT HAD TO CUT ITS COST SHARPLY TO WIN THE SALE SEN FEINGOLD SAYS THAT WHILE HE'S STILL AWAITING THE GAO'S FINAL REPORT HE PLANS TO CALL FOR POLICY CHANGES TO ENSURE THAT INDIRECTOFFSET DEALS GET PROPER REVIEW BEFORE THEY'RE COMPLETED THE MCDONNELL DOUGLAS SPOKESMAN SAYS THAT WHILE ADDING FURTHER REVIEWS TO OFFSET DEALS IS THE PREROGATIVE OF THE US GOVERNMENT THE COMPANY WOULD HOPE THAT THOSE WHO ARE LOOKING AT THE SUBJECT WOULD TAKE INTO ACCOUNT THE COMPETITIVE CONSEQUENCES AND AS YOU ADD STEPS YOU ADD COSTS COMMERCE DEPARTMENT'S VIEW IN RESPONSE TO A QUERY BY THE SENATOR COMMERCE DEPARTMENT SECRETARY RON BROWN SAID IN AN APRIL 1 LETTER THAT WHILE NO VIOLATION OF THE LAW IS APPARENT THIS ISSUE IS OF GREAT CONCERN TO ME AND WE SHALL LOOK INTO THIS CASE HE SAID HE PLANNED TO RAISE THIS CASE WITH THE SECRETARIES OF DEFENSE AND STATE JUSTICE DEPARTMENT OFFICIALS STILL ARE STUDYING THE CASE IN RESPONSE TO A REQUEST FROM MR FEINGOLD DEPUTY SECRETARY OF DEFENSE WILLIAM J PERRY SAID IN AN APRIL 15 LETTER TO MR FEINGOLD THAT EXISTING POLICIES ADEQUATELY REGULATE SUCH SITUATIONS HE SAID DEFENSE COMPANIES CAN'T INCLUDE OFFSETRELATED EXPENSES IN THE OVERHEAD COSTS BILLED TO THE US GOVERNMENT WHEN IT BUYS THE WEAPONS INVOLVED MR PERRY NOTED THAT THE DEFENSE COMPANIES ARE ALLOWED TO PASS OFFSET ADMINISTRATIVE CHARGES ALONG TO FOREIGN GOVERNMENTS IN THE PRICE THOSE GOVERNMENTS PAY FOR THE WEAPONS SEN FEINGOLD SAYS THAT PROVISION CONCERNS HIM BECAUSE IT MEANS THE DEFENSE CONTRACTORS AREN'T MAKING A FINANCIAL SACRIFICE IN BUYING DOWN THE COST OF NONMILITARY IMPORTS HOWEVER THE SENATOR ACKNOWLEDGES THE ISSUES IN SUCH DEALS ARE OFTEN NOT CLEARCUT HE CONFIRMS THAT IN THE RECENT CASE WISCONSINBASED HARNISCHFEGER IS PARTLY OWNED BY JAPANESE INVESTORS WHILE FINLANDBASED VALMET HAS SOME OPERATIONS IN APPLETON WIS HE ALSO SAYS THAT US DEFENSE JOBS TO BE GAINED FROM AN OFFSET DEAL SHOULD BE FACTORED INTO GOVERNMENT APPROVAL NONETHELESS HE SAYS INDIRECTOFFSET DEALS MUST BE BROUGHT INTO THE WORLD OF REVIEW AND CONSIDERATION RATHER THAN JUST BEING A MURKY PRACTICE 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 9305070100 930507 AMERICAN AIRLINES TRAFFIC ROSE FORT WORTH TEXAS AMERICAN AIRLINES SAID ITS APRIL TRAFFIC INCREASED 138 TO 806 BILLION REVENUE PASSENGER MILES FROM 708 BILLION A YEAR AGO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE 15 POINTS TO 601 FROM 585 A YEAR AGO FOR THE YEAR TO DATE THE AMR CORP UNIT SAID IT FLEW 3077 BILLION REVENUE PASSENGER MILES UP 10 FROM 2799 BILLION LAST YEAR LOAD FACTOR FOR THE FIRST FOUR MONTHS ROSE SLIGHTLY TO 585 FROM 583 9305070099 930507 POLITICS & POLICY SERB NO' VOTE HEIGHTENS RISK OF INTERVENTION CLINTON MUST FIRST SECURE SUPPORT OF US ALLIES WHICH MAY TAKE TIME BY CARLA ANNE ROBBINS AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL THE REJECTION OF A PEACE AGREEMENT BY BOSNIA'S SERBS MEANS A MILITARY CONFRONTATION MAY BE UNAVOIDABLE BUT PRESIDENT CLINTON STILL HAS TO WIN THE SUPPORT OF HIS ALLIES BEFORE LAUNCHING A MILITARY ATTACK AND THAT COULD TAKE SOME TIME THE PRESIDENT DECLARED IN A SPEECH THAT THE SERBS' SAVAGE AND CYNICAL ETHNIC CLEANSING OFFENDS THE WORLD'S CONSCIENCE AND THREATENS FUNDAMENTAL US INTERESTS HE CALLED ON AMERICA'S ALLIES TO JOIN WITH THE US AND ACT QUICKLY AND DECISIVELY AGAINST THE SERBS THE PRESIDENT ALSO DISMISSED THE BOSNIAN SERBS' CALL FOR A NATIONAL REFERENDUM ON THE PLAN EIGHT DAYS FROM NOW AS A DELAYING TACTIC TO FURTHER CONSOLIDATE THEIR TERRITORIAL GAINS A SENIOR US OFFICIAL SAID HE BELIEVED THE ALLIES WERE COMING AROUND TO THE PRESIDENT'S POSITION WHICH WOULD COMBINE LIFTING AN ARMS EMBARGO ON BOSNIA'S MUSLIMLED GOVERNMENT WITH AIR STRIKES TO CONTAIN FURTHER SERB AGGRESSION BUT THE SHIFT MAY HAVE FAR MORE TO DO WITH ALLIANCE POLITICS AND LOYALTY TO US LEADERSHIP THAN ANY ENTHUSIASM FOR THE PRESIDENT'S STRATEGY THE ALLIES DO NOT WANT TO DIVERGE FROM THE US POSITION THE OFFICIAL SAID BUT HE SAID HE COULD NOT PROMISE ACTION BEFORE THE MAY 1516 REFERENDUM LACKING A CLEAR CONSENSUS AT HOME AS WELL THE ADMINISTRATION ISN'T LIKELY TO FORCE AN IMMEDIATE DECISION INSTEAD OF CALLING FOR AN EMERGENCY NORTH ATLANTIC TREATY ORGANIZATION MEETING OR SOME OTHER ACTIONFORCING EVENT THE ADMINISTRATION HAS APPARENTLY DECIDED TO STICK TO ITS COURSE OF INCREMENTAL DIPLOMACY AND CONSENSUS BUILDING THE SENIOR OFFICIAL SAID THE DELAY WAS A JUSTIFIABLE PRICE FOR DEALING WITH A MULTILATERAL EFFORT TOP ADMINISTRATION OFFICIALS MET IN THE WHITE HOUSE TO REVIEW THE BOSNIA SITUATION BUT OFFICIALS SAID THEY WOULD AWAIT THE RETURN OF SECRETARY OF STATE WARREN CHRISTOPHER FROM EUROPE THIS WEEKEND BEFORE MAKING ANY FINAL DECISIONS ON A COURSE OF ACTION IT WAS EVIDENT THAT SOLID SUPPORT FOR MILITARY ACTION IS ALSO LACKING IN CONGRESS AND THE PENTAGON AT A PRIVATE BRIEFING FOR HOUSE MEMBERS COLIN POWELL THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF INDICATED THAT HE HAD DOUBTS ABOUT THE PRESIDENT'S COURSE OF ACTION GEN POWELL HAD GONE TO CAPITOL HILL TO GIVE A BRIEFING ON HOW AIR STRIKES COULD BE CARRIED OUT AND A PEACEKEEPING FORCE DEPLOYED BUT WHEN REP GENE TAYLOR D MISS PRESSED HIM TO EXPLAIN WHY HE TOLD MEMBERS OF CONGRESS LAST WEEK THAT HE WAS AGAINST USING FORCE BUT NOW APPEARED TO FAVOR IT THE GENERAL REPLIED TESTILY THAT HE WAS DOING HIS JOB HE SAID HE STILL THINKS ANY MILITARY ACTION SHOULD BE MASSIVE OR NOT AT ALL THIS CONTRASTS WITH THE PRESIDENT'S IDEA OF LIMITED MILITARY ACTION I HAVEN'T CHANGED MY VIEWS GEN POWELL IS QUOTED AS SAYING A STATEMENT THAT PROMPTED APPLAUSE THE PROCESS OF GAINING SUPPORT FOR THE CLINTON PLAN WAS DETOURED FOR MOST OF THIS WEEK AFTER BOSNIAN SERB LEADER RADOVAN KARADZIC INITIALED A PEACE ACCORD IN ATHENS SECRETARY OF STATE CHRISTOPHER DISPATCHED TO EUROPE AND RUSSIA TO RALLY SUPPORT FOR THE PRESIDENT'S PLAN FOR MILITARY ACTION INSTEAD SPENT A GOOD PART OF HIS TIME DISCUSSING PLANS FOR KEEPING PEACE US OFFICIALS ARE NOW HOPING THAT THE SERBS' REJECTION WILL GIVE NEW WEIGHT TO THE PRESIDENT'S ARGUMENTS AND NEW RESOLVE TO THE ALLIES TO TAKE MILITARY ACTION IT COULD STILL BE A VERY TOUGH SELL IN RESPONSE TO MR CHRISTOPHER'S VISIT BRITISH AND FRENCH OFFICIALS AGREED PUBLICLY TO CONSIDER ALL OPTIONS INCLUDING MILITARY ACTION AND THERE ARE TENTATIVE SIGNS THAT THEIR RESISTANCE TO MILITARY ACTION IS WEAKENING BUT IN THE PAST WEEK BRITISH AND FRENCH OFFICIALS HAVE WARNED THAT LIFTING THE ARMS EMBARGO WOULD ONLY INCREASE THE KILLING AND ENDANGER THEIR OWN PEACEKEEPERS ON THE GROUND AS WELL AS HAMPER INTERNATIONAL RELIEF EFFORTS US LAWMAKERS MEANWHILE OPPOSE AIR STRIKES AS TOO DANGEROUS FOR US FLIERS AND INSTEAD PREFER TO LIFT THE ARMS EMBARGO PRESIDENT CLINTON HOWEVER REMAINS CONVINCED THAT THE TWO APPROACHES ARE INDIVISIBLE MR CHRISTOPHER AND HIS AIDES ARE NOW TRYING TO WIN ALLIED SUPPORT FOR THE PRESIDENT'S PLAN WITH SEVERAL ARGUMENTS ACCORDING TO SENIOR OFFICIALS THEIR FIRST APPROACH IS A MIXTURE OF LOGIC AND MORALITY MR CHRISTOPHER AND HIS AIDES SAY THE ARMS EMBARGO HASN'T STOPPED THE KILLING INSTEAD THEY ARGUE IT HAS INCREASED SERBIAN AGGRESSION BY GIVING THEM AN OVERWHELMING ADVANTAGE OVER THE MUSLIMS WE TELL THEM THAT WE CALCULATE THAT THE DISPARITY RANGES FROM 91 TO 161 SAYS A SENIOR US OFFICIAL IN THEIR MEETINGS US OFFICIALS HAVE ALSO SOUGHT TO ADDRESS SPECIFIC EUROPEAN FEARS THEY HAVE HELD INDEPTH DISCUSSIONS WITH THE FRENCH WHO HAVE 5000 PEACEKEEPERS ON THE GROUND ON HOW THEIR TROOPS COULD BE BETTER PROTECTED DURING A LIMITED MILITARY OPERATION INCLUDING A REGROUPING IN AREAS FARTHER FROM THE FIGHTING AND THEY HAVE BEGUN DISCUSSING WAYS THAT THE MUSLIMS CAN RUN THEIR OWN RELIEF OPERATIONS IF PEACEKEEPERS NEED TO DRAW BACK TO MORE SECURE POSITIONS US OFFICIALS ARE ALSO DISCUSSING WITH THEIR ALLIES WAYS TO PREVENT WEAPONS AND THE CONFLICT FROM SPREADING TO OTHER REGIONS PARTICULARLY KOSOVO AND MACEDONIA ONE APPROACH WOULD INCREASE THE NUMBER OF INTERNATIONAL PEACEKEEPERS IN THOSE REGIONS US OFFICIALS SAY MR CHRISTOPHER WILL CONTINUE TO PRESS THOSE ARGUMENTS IN COMING DAYS WHEN HE CALLS THE EUROPEANS AND THE RUSSIANS AND HE IS EXPECTED TO RETURN TO EUROPE AND RUSSIA FOR A FINAL CONSULTATION ONCE A BASIC CONSENSUS IS FORGED BUT IN THE END US OFFICIALS ACKNOWLEDGE THEY MAY HAVE TO FALL BACK ON A MORE BASIC ARGUMENT THE NEED FOR THE ALLIANCE TO HOLD TOGETHER UNDER US LEADERSHIP MR CLINTON SIGNALED THAT APPROACH YESTERDAY THE US IS WILLING TO DO ITS PART MR CLINTON SAID BUT EUROPE MUST BE WILLING TO ACT WITH US WE MUST GO FORWARD TOGETHER JULIE WOLF CONTRIBUTED TO THIS ARTICLE 9305070098 930507 REVIEW & OUTLOOK EDITORIAL CORRECTING THE CATECHISM IS NOTHING SACRED OF COURSE NOT THE CATHOLIC CHURCH IS CURRENTLY ISSUING ITS FIRST CATECHISM OF DOCTRINE SINCE THE CLASSIC WORK BY THE COUNCIL OF TRENT IN 1566 BUT IN THE UNITED STATES NEEDLESS TO SAY IT HAS BOGGED DOWN IN A BATTLE OVER INCLUSIVE OR GENDERNEUTRAL LANGUAGE THE NEW CATECHISM IS ALREADY AVAILABLE IN FRANCE ONE MILLION COPIES SOLD AND SPAIN AND ITALY 500000 EACH TO SAY L'HOMME IN THE FRENCH EDITION PASSES MUSTER WITH THE GENDER INQUISITION BUT MAN IN ENGLISH HAS BECOME AN OFFENSE APPARENTLY SERIOUS ENOUGH TO DESERVE SUPPRESSION SO YES EVEN A NEW CATHOLIC CATECHISM MUST UNDERGO TORTURE BY AN IDEOLOGICALLY INFECTED BUREAUCRACY THE STRUGGLE BEGAN SOME MONTHS AGO WHEN IT WAS ANNOUNCED THAT THE NEW FRENCH EDITION OF CHURCH TEACHINGS WOULD BE ALTERED IN THE ENGLISH TRANSLATION THE PRODUCT OF THIS MALCLEANSING EFFORT IS NOW BEFORE THE VATICAN WHICH HAS TO DECIDE WHETHER TO SIGN OFF ON AN EDITION THAT PRESUMABLY WON'T VIOLATE THE INDEX OF FORBIDDEN WORDS IN THE UNITED STATES IF INDEED THE PROPOSED NEW LANGUAGE IS ACCEPTED THE CATECHISM OF THE CATHOLIC CHURCH WILL MAKE FOR SOME STRANGE READING IT TAKES SOME DOING TO MAKE THE SCRIPTURES SEEM WOODEN AND PEDESTRIAN BUT THE INCLUSIVE LANGUAGE ENFORCERS HAVE IT APPEARS MANAGED TO DO JUST THAT IN THEIR PROPOSED TRANSLATION THE LINES FROM LUKE 1733 FOR INSTANCE WOULD NO LONGER BE HE WHO SEEKS TO SAVE HIS LIFE WILL LOSE IT BUT HE WHO LOSES HIS LIFE WILL SAVE IT THE NEW VERSION READS THOSE WHO TRY TO MAKE THEIR LIFE SECURE WILL LOSE IT BUT THOSE WHO LOSE THEIR LIFE WILL KEEP IT OR TAKE THE ORIGINAL FROM GENESIS 956 WHICH READS WHOEVER SHEDS THE BLOOD OF MAN BY MAN SHALL HIS BLOOD BE SHED FOR GOD MADE MAN IN HIS OWN IMAGE THIS NOW WOULD READ WHOEVER SHEDS THE BLOOD OF A HUMAN BY A HUMAN SHALL THAT PERSON'S BLOOD BE SHED FOR IN HIS OWN IMAGE GOD MADE HUMANKIND STRANGER STILL IS WHAT HAPPENS TO THE LYRIC BEAUTY OF MATTHEW 2540 IT USED TO READ AS YOU DID IT TO ONE OF THE LEAST OF THESE MY BRETHREN YOU DID IT TO ME IN THE NEW TRANSLATION THE CLEANSED LINE READS WHAT YOU DO TO THE LEAST OF MY FAMILY MEMBERS YOU DO TO ME IT'S NOT SURPRISING THAT MANY CATHOLICS ARE UP IN ARMS ACCORDING TO FATHER JOSEPH FESSIO OF THE IGNATIUS PRESS A LEADER IN THE BATTLE AGAINST THE LANGUAGE CHANGES THOSE CHANGES HE NOTES ARE SHOCKING TO PEOPLE WHO HAVE HEARD AND PRAYED THESE PASSAGES THEIR WHOLE LIVES WE MIGHT ADD THAT THOSE CHANGES SHOULD BE SHOCKING TO ANYONE WITH A SHRED OF SANITY WE THINK WE DETECT WHAT HAS HAPPENED HERE CHURCH LITURGICAL EXPERTS IN THE US HAVE BEEN SUGGESTING THAT THE BOOK IS MAINLY FOR PRIESTS AND SCHOLARS RATHER THAN PEOPLE IN THE PEWS EUROPE'S HUGE SALES HOWEVER SUGGEST THAT THE PEASANTRY WILL DEMAND ACCESS TO THE MANUSCRIPT WHAT SEEMS CLEAR IS THAT THE INBRED WORLD OF US CATHOLIC ACADEMICS AND ADMINISTRATORS IS ATTEMPTING TO REWRITE THE TEXT TO SUIT ITS OWN PERSONAL NEEDS THEY WANT TO FEEL COMFORTABLE READING INCLUSIVE PROSE THE LAITY AS USUAL WAS EXPECTED TO GENUFLECT QUIETLY BEFORE A FAIT ACCOMPLI BUT NOW THE VATICAN WILL DECIDE 9305070097 930507 ENTERPRISE CRAFT FIRM SUCCEEDS BY PUTTING ART IN MANY BASKETS WATERMARK REACHING BEYOND LOCAL MARKET WEAVES AN INTERNATIONAL PATTERN BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL THE LANDSCAPE IS LITTERED WITH THE WRECKAGE OF SMALL CRAFT COMPANIES THAT RELIED EXCLUSIVELY ON THEIR LOCAL MARKET WATERMARK ASSOCIATION OF ARTISANS IN CAMDEN NC IS AN EXCEPTION FROM A ONESTORY OFFICE SURROUNDED BY CORNFIELDS POOR AND MIDDLEINCOME ARTISANS HAVE BUILT A THRIVING INTERNATIONAL BUSINESS BY AGGRESSIVELY MARKETING HANDCRAFTED GOODS THROUGH AN ARRAY OF CHANNELS INCLUDING CATALOGS TRADE SHOWS AND A CABLETELEVISION NETWORK WATERMARK A FORPROFIT COOPERATIVE FORMED 15 YEARS AGO AND OWNED BY ITS 700 MEMBERS HAS BROUGHT A STEADY STREAM OF JOBS AND MONEY TO AN AREA BLIGHTED BY POVERTY AND STARVED FOR NEW BUSINESS OPPORTUNITIES AND ALSO OFFERS JOB TRAINING AND SOCIAL COUNSELING TO ITS WORKERS WATERMARK'S EXPERIENCE SUGGESTS HOW MANY SMALL BUSINESSES CAN THRIVE THROUGH A CAREFUL WHOLESALE STRATEGY THAT TARGETS WELLKNOWN LARGER RETAILERS WATERMARK IS A CUTTINGEDGE PROGRAM IN TERMS OF WHAT IT DOES FOR COMMUNITY ENTERPRISE SAYS FRED O'REGAN A SENIOR ANALYST AT THE ASPEN INSTITUTE A WASHINGTON THINK TANK THE CRAFTS INDUSTRY IS FICKLE AND COMPETITIVE PEOPLE GET BLOWN OUT OF IT ALL THE TIME IT'S REALLY REMARKABLE THAT THEY'VE BEEN THIS SUCCESSFUL FOR THIS LONG WATERMARK INITIALLY FINANCED WITH GRANTS AND WORKER CONTRIBUTIONS SAYS IT HAD REVENUE OF ABOUT 700000 LAST YEAR THAT'S ALMOST A THREEFOLD INCREASE FROM 1988 THE COMPANY SAYS FINANCING ITS RECENT SALES SURGE PUT WATERMARK IN THE RED DURING THE PAST TWO YEARS BUT IT EXPECTS TO BE PROFITABLE AGAIN THIS YEAR THAT WOULD BE A VAST IMPROVEMENT FROM 1981 WHEN WATERMARK SUFFERING FROM OVERDEPENDENCE ON ITS LOCAL MARKET ALMOST WENT BELLY UP SAYS CAROLYN MCKECUEN WHO WAS HIRED AS MANAGER THAT YEAR MS MCKECUEN EXPOSED WATERMARK'S HANDWOVEN BASKETS WOODCRAFTS AND OTHER PRODUCTS TO A MUCH BIGGER AUDIENCE BY SWITCHING THE COOPERATIVE'S RETAIL FOCUS TO NATIONAL AND INTERNATIONAL WHOLESALING BEGINNING IN THE EARLY 1980S MS MCKECUEN CARTED WATERMARK CRAFTS IN HER CAR TO TRADE SHOWS IN NEW YORK ATLANTA AND ELSEWHERE I FELT ALONE BECAUSE EVERYONE IN THE BUSINESS WORLD SEEMED BIGGER AND BETTER SHE RECALLS WE HAD TO REALLY WORK HARD TO CONVINCE EVERYONE HOW GOOD WE WERE HER HARD WORK PAID OFF AS INTEREST WIDENED WATERMARK BEGAN TO PRODUCE A WHOLESALE CATALOG THAT IT SENT TO RETAIL CATALOGERS AND ALSO MARKETED AT TRADE SHOWS LAST YEAR THE WATERMARK CATALOG SNARED THE INTEREST OF QVC NETWORK INC BRINGING THE COOPERATIVE INTO THE EXPANDING WORLD OF TELEVISION RETAILING WATERMARK OFFICIALS SAY THEY RECENTLY SIGNED A CONTRACT TO SELL 300000 OF RETAIL GOODS THROUGH THE HOMESHOPPING CHANNEL WATERMARK SAYS ITS CRAFTS NOW RETAIL IN 5000 STORES AND 15 CATALOGS AT HOME AND ABROAD BUYERS INCLUDE POLO RALPH LAUREN CORP ESPRIT DE CORP AND FIELDCREST CANNON INC BUYERS SAY THEY SUPPORT THE COOPERATIVE'S SOCIAL GOALS OR SIMPLY APPRECIATE ITS ARTISANS' SKILLS THE BEAUTY OF WATERMARK IS THAT THEY CAN PRODUCE WHATEVER YOU NEED QUICKLY AND WITH QUALITY SAYS NANCY WEBSTER A VICE PRESIDENT OF FIELDCREST THE MAKER OF BED AND BATH PRODUCTS BEGAN BUYING WATERMARK PRODUCTS LATE LAST YEAR TO MAINTAIN ITS REPUTATION FOR HIGHQUALITY GOODS WATERMARK SAYS IT CAREFULLY SCREENS AND TRAINS THE UNSKILLED WORKERS WHO WISH TO JOIN THE GROUP A TWOWEEK PROGRAM EMPHASIZES TRAINING IN A VARIETY OF CRAFTS WATERMARK SAYS THIS PROVIDES A DEPTH OF TALENT THAT ALLOWS THE COOPERATIVE TO FILL LARGE ORDERS FASTER ONLY 12 WATERMARK MEMBERS ARE MEN MANY WOMEN COME TO THE COOPERATIVE FROM SHELTERS FOR BATTERED WOMEN WATERMARK OFFERS THESE WOMEN COUNSELING ALONG WITH THEIR JOB TRAINING TRAINED MEMBERS EARN AN AVERAGE OF 8000 TO 10000 A YEAR MAKING HANDICRAFTS FROM HOME OFTEN DOUBLING THEIR FAMILY'S INCOME SOME MEMBERS SAY THEIR INVOLVEMENT WITH WATERMARK AND ESPECIALLY THEIR PARTIAL OWNERSHIP OF THE COOPERATIVEGIVES THEM A GREATER SENSE OF CONTROL OVER THEIR LIVES JO LYNN BONE 40 YEARS OLD HAS BEEN A WATERMARK MEMBER FOR EIGHT YEARS SHE DESIGNS AND PAINTS WOOD PRODUCTS AND TEACHES TRAINEES MS BONE'S HUSBAND LOST HIS FARM FIVE YEARS AGO AND NOW SUPERVISES TOBACCO PROCESSING FOR A CIGARETTE COMPANY SHE SAYS HER 20000 ANNUAL INCOME ENABLES HER FAMILY OF SIX TO SURVIVE WATERMARK HAS BEEN A LIFESAVER FOR A LOT OF PEOPLE MS BONE SAYS IT PROVIDES JOBS AND GIVES PEOPLE SOMETHING THAT JUST HELPS KEEP THEM GOING WATERMARK MEMBERS ARE PAID ACCORDING TO THEIR PRODUCTIVITY WITH THE BULK OF THE COOPERATIVE'S REVENUE COVERING THEIR PAY THE COMPANY OFTEN HAS SCANT RESERVES OF WORKING CAPITAL WHILE WATERMARK NOW EARNS ENOUGH MONEY TO KEEP GOING IT STILL MUST RELY ON GRANTS FOR ITS TRAINING AND SOCIAL SERVICES MS MCKECUEN SAYS WATERMARK COULD EASE THAT SITUATION BY CAPPING MEMBERS' WAGES OR REDUCING ITS TRAINING AND SOCIAL SERVICES BUT WATERMARK MEMBERS HESITATE TO MAKE SUCH DIFFICULT CHOICES WE'RE NOT JUST A BUSINESS THERE TO MAKE A PROFIT SAYS DEBI PETERSON A WATERMARK MEMBER WHO EARNED ABOUT 27000 LAST YEAR WE'RE A CROSS BETWEEN SOMETHING TRYING TO PROVIDE SOCIAL SERVICES AND ALSO BECOME A BIG BUSINESS 9305070096 930507 TECHNOLOGY & HEALTH A FIREFLY GENE MAY LIGHT WAY TO GAINS ON TB BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL THE GENE THAT MAKES FIREFLIES GLOW MAY SOME DAY SPEED PHYSICIANS' DIAGNOSES AND TREATMENTS OF PATIENTS INFECTED WITH DRUGRESISTANT STRAINS OF TUBERCULOSIS A TEAM OF RESEARCHERS LED BY WILLIAM R JACOBS JR AND BARRY R BLOOM OF THE ALBERT EINSTEIN COLLEGE OF MEDICINE IN NEW YORK'S BRONX BOROUGH DEVELOPED TOOLS TO INSERT THE FIREFLY GENE INTO TB BACTERIA TAKEN FROM A PATIENT'S SPUTUM SAMPLE THAT HAD BEEN EXPOSED TO AN ANTIBIOTIC IF THE ANTIBIOTIC DIDN'T WORK THE BACTERIA EMITTED A DIM YELLOWISHGREEN LIGHT INDICATING THEY WERE STILL ALIVE AND RESISTANT TO THAT PARTICULAR DRUG IF A LIGHT DIDN'T APPEAR AFTER THE FIREFLY GENE WAS INSERTED THE RESEARCHERS KNEW THE ANTIBIOTIC WAS EFFECTIVE BECAUSE THE BACTERIA WERE DEAD THE NEW TEST WILL HALVE THE TIME NEEDED TO DIAGNOSE DRUGRESISTANT TB IN PATIENTS ACCORDING TO THE RESEARCHERS CURRENT TB TESTS TAKE AS LONG AS 13 WEEKS THREE TO EIGHT WEEKS TO GROW THE BILLIONS OF BACTERIA NEEDED TO CONDUCT THE TEST AND ANOTHER FIVE WEEKS TO SEE IF ONE OF THE DOZEN OR SO ANTIBIOTICS USED TO TREAT THE DISEASE KILLS THEM MEANWHILE THE PATIENT CAN CONTINUE TO SPREAD THE DISEASE BY COUGHING OR SNEEZING HEALTHCARE WORKERS ARE PARTICULARLY AT RISK ANECDOTAL REPORTS INDICATE THAT AS MANY AS 30 OF NURSES DOCTORS AND OTHER HEALTHCARE WORKERS AT SOME HOSPITALS HAVE BEEN INFECTED WITH THE TB BACTERIA IN THE PAST YEAR THE PROBLEM IS PARTICULARLY WORRISOME IN URBAN AREAS SUCH AS NEW YORK WHERE A RECENT STUDY SHOWED A THIRD OF THE PATIENTS WITH TB HAD DRUGRESISTANT VARIETIES IN TODAY'S SCIENCE JOURNAL THE RESEARCHERS DESCRIBE THEIR TECHNIQUE OF CREATING A GENETICALLY ENGINEERED PHAGE A VIRUS THAT INFECTS BACTERIA TO CARRY THE GENE THAT PRODUCES THE LUCIFERASE ENZYME THAT MAKES FIREFLIES GLOW AS IT PENETRATES THE TB BACTERIUM THE PHAGE INSERTS THE LUCIFERASE GENE THE RESEARCHERS ARE WORKING ON IMPROVING THE PHAGES TO REDUCE THE TIME NEEDED TO OBTAIN A TEST RESULT TO LESS THAN A WEEK THEY ARE ALSO SEEKING TO BOOST THE LIGHT INTENSITY SO IT CAN BE SEEN IN A DARK ROOM OR ON FILM RATHER THAN HAVING TO USE A LIGHT DETECTOR YEARS AWAY THE TEST MAY ALSO HELP PHARMACEUTICAL COMPANIES FIND NEW TB DRUGS TIME IS MONEY IN DRUG DISCOVERY AND THE FIREFLY TB TEST COULD GREATLY INCREASE RESEARCH PRODUCTIVITY SAYS BARRY I EISENSTEIN VICE PRESIDENT AT ELI LILLY & CO'S LILLY RESEARCH LABORATORIES MOREOVER MANY DRUGS ARE UNSTABLE AND BREAK DOWN OVER A PERIOD OF WEEKS MAKING IT DIFFICULT TO GAUGE RESULTS HE SAYS ELI LILLY AND BRISTOLMYERS SQUIBB CO ARE NEGOTIATING TO USE THE TEST EVENTUALLY A FORM OF THE TEST FOR USE IN HOSPITALS IS STILL SEVERAL YEARS AWAY DR JACOBS SAYS BESIDES REDUCING THE SPREAD OF THE DISEASE EARLIER DIAGNOSES OF ACTIVE TB MAY SAVE LIVES IN ONE NEW YORK CASE DR JACOBS RECOUNTS A PATIENT WHO WAS ALSO INFECTED WITH THE AIDS VIRUS WAS TREATED FOR TB WITH THE STANDARD THREE DRUGS ONE MONTH LATER HE WAS DOING WORSE AND WAS STARTED ON THREE DIFFERENT ANTIBIOTICS TWO MONTHS LATER HE WAS DEAD TWO WEEKS LATER HIS TB TEST RESULT CAME IN HE WAS INFECTED WITH ORGANISMS RESISTANT TO SEVEN DIFFERENT ANTIBIOTICS HAD WE KNOWN IN THE FIRST WEEK WHAT TO TREAT HIM WITH WE MIGHT HAVE SAVED HIS LIFE AND PREVENTED THE SPREAD OF MULTIPLEDRUGRESISTANT TB TO HEALTHCARE WORKERS AND OTHER PATIENTS DR JACOBS SAYS MANY HOSPITALS ARE CONSIDERING SPENDING MILLIONS OF DOLLARS ON SPECIAL VENTILATION SYSTEMS AND MASKS TO REDUCE THEIR STAFFS' EXPOSURE TO TB SAYS GEORGE DIFERDINANDO JR MEDICAL DIRECTOR OF NEW YORK STATE'S TBCONTROL PROGRAM BUT HE SAYS THE BEST WAY TO PROTECT HEALTHCARE WORKERS ISN'T MASKS OR VENTILATION HE ADDS THE BEST WAY IS BY RAPIDLY DIAGNOSING AND ACCURATELY TREATING PATIENTS AND DR JACOBS'S TEST HELPS WITH THAT 9305070095 930507 CANADIAN NEWSPRINT OUTPUT INCREASES 17 SHIPMENTS CLIMB 15 MONTREAL CANADIAN NEWSPRINT PRODUCTION ROSE 17 IN MARCH FROM A YEAR EARLIER AND SHIPMENTS INCREASED 15 ACCORDING TO THE CANADIAN PULP AND PAPER ASSOCIATION THE INDUSTRY GROUP SAID CANADIAN MILLS OPERATED AT 98 OF CAPACITY IN MARCH UP FROM 82 A YEAR EARLIER PRODUCTION ROSE TO 829000 METRIC TONS OF NEWSPRINT IN MARCH FROM 710000 METRIC TONS A YEAR EARLIER THE ASSOCIATION SAID MARCH SHIPMENTS ROSE TO 845000 METRIC TONS FROM 737000 A YEAR EARLIER SHIPMENTS TO THE US ROSE 19 TO 557000 METRIC TONS FROM 467000 METRIC TONS A YEAR EARLIER SHIPMENTS TO CANADIAN CUSTOMERS ROSE 12 TO 95000 METRIC TONS FROM 84400 AND SHIPMENTS TO OTHER MARKETS ROSE 43 TO 194000 METRIC TONS FROM 186000 A YEAR EARLIER CANADIAN NEWSPRINT MILLS' INVENTORIES AT THE END OF MARCH WERE 396000 METRIC TONS DOWN FROM 412000 METRIC TONS IN FEBRUARY AND 644000 IN MARCH 1992 US CONSUMER STOCKS WERE 1520000 METRIC TONS OR 48 DAYS OF SUPPLY AT THE END OF MARCH COMPARED WITH A 46DAY SUPPLY IN FEBRUARY AND A 39DAY SUPPLY A YEAR EARLIER THE ASSOCIATION SAID THE INVENTORY FIGURES APPEAR TO SUPPORT ANECDOTAL EVIDENCE THAT PUBLISHERS ARE BUILDING INVENTORIES TO GUARD AGAINST POSSIBLE STRIKES THIS SUMMER AT EASTERN CANADIAN MILLS WHERE UNION CONTRACTS ARE UP FOR RENEWAL 9305070094 930507 LETTERS TO THE EDITOR PARENTS KNOW PBS DOESN'T EXPLOIT KIDS MISSING FROM PARENTS SAY PBS STATIONS EXPLOIT BARNEY IN FUND DRIVES MARCH 19 IS ANY SENSE OF THE UNIQUE 40YEAR RELATIONSHIP BETWEEN AMERICA'S PARENTS AND THEIR LOCAL PUBLIC TELEVISION STATIONS PARENTS TRUST US TO PRESENT SAFE NURTURING PROGRAMS THAT CONTRIBUTE TO THEIR YOUNGSTERS' LIVES THEY ALSO TRUST US TO RESPECT THE DEVELOPMENTAL NEEDS OF THEIR CHILDREN THAT IS WHY WE ARE EXTREMELY CAREFUL THAT OUR ONAIR FUNDRAISING EFFORTS ARE AIMED AT ADULTS NOT CHILDREN PUBLIC TV IN TURN TRUSTS THAT PARENTS WILL UNDERSTAND THAT ONAIR FUNDRAISING IS CRITICAL IF WE ARE TO CONTINUE TO PROVIDE THE SERVICES THEY VALUE AND THE BEST PLACE FOR US TO APPROACH PARENTS IS BETWEEN PROGRAMS NOT DURING AS YOUR ARTICLE STATES THAT THEY TRUST TO HAVE THEIR CHILDREN VIEW YES WE USUALLY OFFER A THANKYOU GIFT BUT THE SUCCESS OF A MEMBERSHIP DRIVE REFLECTS THE VALUE OF OUR PROGRAMS NOT OF OUR GIFTS A HANDFUL OF COMPLAINTS NOTWITHSTANDING THE SPECIAL BOND BETWEEN PARENTS AND PUBLIC TV STATIONS IS ALIVE AND WELL LAST MONTH MORE THAN 560000 PARENTS AND OTHER ADULTS GAVE US THEIR STRONG VOTE OF CONFIDENCE BY PLEDGING THEIR SUPPORT DURING PUBLIC TV MEMBERSHIP DRIVES 9305070093 930507 TECHNOLOGY BRIEF AL LABORATORIES INC UNIT WINS FDA APPROVAL TO MARKET GENERIC INHALANT AL LABORATORIES INC SAID THE FOOD AND DRUG ADMINISTRATION GAVE ITS BARRENATIONAL INC LIQUID PHARMACEUTICALS SUBSIDIARY MARKETING APPROVAL FOR A RESPIRATORYRELIEF INHALANT THE INHALANT EPINEPHRINE MIST IS THE ONLY GENERIC EQUIVALENT FOR THE BRANDNAME INHALANTS PRIMATENE MIST AND BRONKAID MIST AL SAID THE MIST IS USED TO RELIEVE RESPIRATORY DISTRESS AL SAID THE TWO BRANDS CURRENTLY HAVE TOTAL ANNUAL SALES OF MORE THAN 50 MILLION BARRENATIONAL HAD ABOUT 4 MILLION IN SALES FOR THE GENERIC FORM BEFORE TAKING IT OFF THE MARKET IN 1989 FOR REFORMULATION BARRENATIONAL EXPECTS TO BEGIN MARKETING THE MIST IN THE FOURTH QUARTER AL OF FORT LEE NJ IS A MAKER OF SPECIALIZED DRUGS AND ANIMALHEALTH PRODUCTS 9305070092 930507 BUSINESS BRIEFS SARA LEE CORP ACQUIRED UPXON INC TERMS WEREN'T DISCLOSED GENERAL SIGNAL CORP PURCHASED THE REMAINING 25 INTEREST IN THUN INC FROM THUN HANDEL GMBH OF GERMANY TERMS WEREN'T DISCLOSED A&W BRANDS INC REACHED AN AGREEMENT TO MAKE AND MARKET TWO ADDITIONAL COUNTRY TIME LEMONADE PRODUCTS UNDER A LICENSING AGREEMENT WITH GENERAL FOODS USA A UNIT OF PHILIP MORRIS COS MICHAEL BAKER CORP'S BAKER ENVIRONMENTAL INC UNIT RECEIVED A 20 MILLION THREEYEAR CONTRACT TO PROVIDE ENVIRONMENTAL ENGINEERING SERVICES TO THE ARMY CORPS OF ENGINEERS' OMAHA DISTRICT TOLL BROTHERS INC HAD RECORD NEW SALES CONTRACTS IN THE FISCAL SECOND QUARTER ENDED APRIL 30 AND THE LUXURY HOMEBUILDER'S BACKLOG IS ALSO AT RECORD LEVELS 9305070091 930507 MARKETING & MEDIA DISNEYLAND FACES FINE FOR ALLEGEDLY HIRING UNDOCUMENTED ALIENS ANAHEIM CALIF THE IMMIGRATION AND NATURALIZATION SERVICE SAID IT INTENDS TO FINE WALT DISNEY CO'S DISNEYLAND 394840 FOR ALLEGEDLY HIRING UNDOCUMENTED WORKERS THERE WAS NO INTENTIONAL HIRING OF ILLEGALS DISNEYLAND SAID IN A STATEMENT DISNEYLAND ACKNOWLEDGED SOME PAPERWORK PROBLEMS AND INADVERTENT HIRING OF FIVE UNDOCUMENTED WORKERS IT SAID IT WOULD RESPOND TO THE INS BEFORE MAY 22 JOHN BRECHTEL ASSISTANT DISTRICT DIRECTOR FOR INVESTIGATIONS AT THE LOS ANGELES OFFICE OF THE INS SAID THE AGENCY RAISED QUESTIONS ABOUT 150 DISNEYLAND EMPLOYEES AND SAID THE COMPANY LATER DISMISSED 55 WHOSE WORKAUTHORIZATION DOCUMENTS WERE BOGUS BUT DAVID COX A VICE PRESIDENT AT DISNEYLAND SAID THAT 53 WORKERS HAD TERMINATED VOLUNTARILY FOR REASONS UNRELATED TO THE INS AUDIT 9305070090 930507 TEXAS THRIFT OFFICIAL SENTENCED TO PROBATION IN FEDERAL FRAUD CASE DALLAS FORMER TEXAS THRIFT OFFICER JACK R GAUBERT WHO PLEADED GUILTY IN JANUARY TO A FEDERAL FRAUD CHARGE WAS SENTENCED TO THREE YEARS PROBATION MR GAUBERT THE FORMER CHAIRMAN OF THE FAILED INDEPENDENT AMERICAN SAVINGS ASSOCIATION WAS ALSO ORDERED TO PERFORM 200 HOURS OF COMMUNITY SERVICE AND TO PAY 138000 IN RESTITUTION TO THE GOVERNMENT WHICH BAILED OUT THE THRIFT MR GAUBERT'S ATTORNEY SKIP SIMPSON OF DALLAS WAS DELIGHTED WITH THE RESULT MR SIMPSON HAD FEARED HIS CLIENT WOULD GET A JAIL TERM IT WAS ONE OF THE BIGGEST SAVINGS AND LOANS AND HAVING THE LAST NAME OF GAUBERT DIDN'T HELP ANY MR GAUBERT'S BROTHER THOMAS WHO COCHAIRED THE THRIFT IS FIGHTING THREE FEDERAL INDICTMENTS OF BANK FRAUD AND RELATED COUNTS JACK GAUBERT ADMITTED VIOLATING REGULATIONS WHEN HE AND OTHER OFFICERS APPROVED LOANS TOTALING 27 MILLION TO THE BUYER OF THE LAKEWOOD TOWNHOMES CONDOMINUM COMPLEX THE LOANS EXCEEDED THE PROPERTY'S 18 MILLION APPRAISAL VALUE US DISTRICT COURT JUDGE JORGE SOLIS DIDN'T IMPOSE A JAIL TERM BECAUSE THE CHARGE AGAINST JACK GAUBERT CONSTITUTED A TECHNICAL OFFENSE AND BECAUSE HE MADE NO MONEY FROM THE ILLEGAL TRANSACTION MR SIMPSON SAID NO ONE FROM THE PROSECUTOR'S OFFICE COULD BE REACHED FOR COMMENT 9305070089 930507 BUSINESS BRIEF CONSOLIDATED STORES CORP NET FOR PERIOD OF LESS THAN FIVE CENTS A SHARE EXPECTED CONSOLIDATED STORES CORP SAID IT EXPECTS EARNINGS IN ITS FISCAL FIRST QUARTER ENDED MAY 1 WILL BE IN LINE WITH THE LOWER RANGE OF ANALYSTS' ESTIMATES OF THREE TO FIVE CENTS A SHARE IN LAST YEAR'S FISCAL FIRST QUARTER THE COLUMBUS OHIO CLOSEOUT MERCHANDISE RETAILER EARNED 34 MILLION OR SEVEN CENTS A SHARE ON SALES OF 192 MILLION THE COMPANY ALSO SAID SALES IN THE FIVE WEEKS ENDED MAY 1 ROSE 74 FOR STORES OPEN TWO YEARS OR MORE AT THE START OF ITS FISCAL YEAR WHILE SALES FOR ALL RETAIL STORES WERE 898 MILLION UP 20 FROM 75 MILLION A YEAR EARLIER THE COMPANY CALLED APRIL SALES EXCELLENT AND SAID THEY ARE CONTINUING IN MAY BUT CONSOLIDATED SAID POOR WEATHER DEPRESSED SALES IN FEBRUARY AND MARCH SO FIRSTQUARTER SALES FOR COMPARABLE STORES FELL 21 WHILE TOTAL SALES WERE 205 MILLION UP 10 FROM 186 MILLION IN THE YEAREARLIER QUARTER 9305070088 930505 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 9305070087 930507 CAMPAIGNFINANCE LOBBYING OVERHAUL PICKS UP STEAM AFTER YEARS OF HOT AIR BY JEFFREY H BIRNBAUM AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AFTER YEARS OF TALK BUT LITTLE ACTION EFFORTS ARE NOW UNDER WAY TO REIN IN THE MUCHREVILED SYSTEM OF CAMPAIGN FINANCING AND TO FORCE THE SECRETIVE WORLD OF LOBBYISTS INTO THE OPEN PRESIDENT CLINTON TODAY WILL UNVEIL HIS PLAN TO OVERHAUL THE CAMPAIGNFINANCE LAWS AND ITS CHANCE OF PASSAGE IS HIGH DESIGNED TO REDUCE THE INFLUENCE OF PRIVATEINTEREST MONEY ON FEDERAL ELECTIONS THE PLAN IS EXPECTED TO INCLUDE AT LEAST ONE LITTLENOTICED ADDITION A PROVISION REQUIRING PRESIDENTIAL CANDIDATES WHO TAKE FEDERAL FUNDS TO PARTICIPATE IN PUBLIC DEBATES THE SENATE MEANWHILE PASSED A BILL TO REQUIRE PROFESSIONAL LOBBYISTS TO DISCLOSE MORE OF WHAT THEY DO THE BILL NOW MOVES TO THE HOUSE WHERE ITS TOUGH DISCLOSURE PROVISIONS WILL BE AGONIZED OVER BUT PROBABLY PASSED IN SOME FORM THE MOVEMENT ON BOTH FRONTS REFLECTS THE BELIEF THAT THE VOTING PUBLIC IS FED UP WITH THE WAY WASHINGTON WORKS BOTH THE CAMPAIGNFINANCE AND LOBBYING DISCLOSURE BILLS ARE PRIORITIES WITH PRESIDENT CLINTON AND THE DEMOCRATIC MAJORITIES THAT CONTROL BOTH CHAMBERS OF CONGRESS STILL DIFFICULTIES LIE AHEAD SENATE REPUBLICANS HAVE VOWED TO FILIBUSTER THE CAMPAIGNFINANCE BILL BECAUSE IT CONTAINS SOME PUBLIC FUNDING FOR CONGRESSIONAL ELECTIONS REPUBLICANS AND DEMOCRATS WILL SEEK OTHER CHANGES AS WELL INCLUDING AN EFFORT TO ALLOW MORE PRIVATE MONEY TO BE FUNNELED INTO THE CAMPAIGN COMMITTEES THAT SUPPORT CANDIDATES FOR CONGRESS THE LOBBYINGDISCLOSURE BILL ALSO IS CONTROVERSIAL AN AMENDMENT INCLUDED IN THE SENATE BILL TO REQUIRE LOBBYISTS TO DISCLOSE RELATIVELY SMALL GIFTS AND GRATUITIES TO LAWMAKERS IS VIEWED AS OVERKILL EVEN BY MANY HOUSE MEMBERS SYMPATHETIC TO THE MEASURE DEMOCRATIC LEADERS IN THE SENATE ARE CONFIDENT THEY CAN PERSUADE ENOUGH MODERATE REPUBLICANS TO SIDE WITH THEM TO END OR EVEN AVERT A FILIBUSTER AND PASS THE CAMPAIGNFINANCE MEASURE FIVE GOP SENATORS ARE CIRCULATING A LETTER THAT ENUMERATES THEIR DEMANDS IN A WAY THAT SUGGESTS THEY MIGHT ACCEPT SUCH A PROPOSAL AND HOUSE LEADERS ACKNOWLEDGE THAT GIVEN THE PUBLIC'S ANTIPATHY TOWARD LOBBYISTS ALMOST ANY BILL THAT FORCES FURTHER DISCLOSURE NO MATTER HOW STRINGENT IS LIKELY TO PASS YESTERDAY THE SENATE PASSED THE LOBBYING LEGISLATION IN A 952 VOTE THE BILL WHICH WAS SPONSORED BY SEN CARL LEVIN D MICH IS INTENDED TO PLUG LOOPHOLES THAT PERMIT MOST OF WASHINGTON'S LOBBYISTS TO AVOID REGISTERING THE BILL ALSO REQUIRES LOBBYISTS TO ITEMIZE FINANCIAL BENEFITS OR GIFTS VALUED AT MORE THAN 20 TO LAWMAKERS OR THEIR STAFF MEMBERS BEFORE FINAL PASSAGE THE SENATE WENT EVEN FURTHER IT ADOPTED BY A 981 VOTE A NONBINDING RESOLUTION THAT SIGNALED ITS INTENT TO BAN SUCH GIFTS ALTOGETHER THIS WOULD BE IN LINE WITH CURRENT LAWS THAT COVER OFFICIALS IN THE EXECUTIVE BRANCH IN ADDITION TO THE GIFT BAN DEMOCRATIC SENATORS PLAN TO FOLLOW UP THE LOBBYIST REGISTRATION BILL WITH LEGISLATION INTENDED TO CLOSE THE REVOLVING DOOR THROUGH WHICH LAWMAKERS LEAVE TO LOBBY FOR PRIVATE INTERESTS A PROPOSAL BY SEN DAVID BOREN D OKLA WOULD BAR FORMER LAWMAKERS FROM LOBBYING SITTING MEMBERS OF CONGRESS OR THEIR STAFFS FOR TWO YEARS IN ADDITION IT WOULD BAR THEM FROM LOBBYING THE COMMITTEES ON WHICH THEY SERVED FOR FIVE YEARS AND BAR THEM PERMANENTLY FROM LOBBYING ON BEHALF OF FOREIGN CLIENTS MR CLINTON'S CAMPAIGNFINANCE LEGISLATION WILL OFFER VOUCHERS FOR TELEVISION AIR TIME PRINT ADVERTISEMENTS AND POSTAGE TO CANDIDATES AS AN INCENTIVE TO LIMIT THEIR SPENDING THE LIMITS ARE 600000 FOR HOUSE RACES AND 12 MILLION TO 55 MILLION FOR SENATE RACES DEPENDING ON A STATE'S POPULATION FOR HOUSE RACES THE FEDERAL SUBSIDY COULD BE AS LARGE AS ONETHIRD OF TOTAL SPENDING MATCHING THE TOTAL CONTRIBUTIONS FROM INDIVIDUALS OF 250 OR LESS CONTRIBUTIONS FROM POLITICAL ACTION COMMITTEES WOULD BE LIMITED TO THE REMAINING ONETHIRD OF TOTAL OUTLAYS IN HOUSE RACES SENATE CANDIDATES COULD ACCEPT AS MUCH AS ONEFIFTH OF THEIR SPENDING LIMIT FROM PACS THE PRESIDENT'S PLAN REPEALS THE CORPORATE TAX DEDUCTION FOR LOBBYING EXPENSES AND IN EFFECT PREVENTS REGISTERED LOBBYISTS FROM MAKING OR SOLICITING CAMPAIGN CONTRIBUTIONS A PROVISION THAT SOME HOUSE LEADERS ARGUE MAY BE UNCONSTITUTIONAL MR CLINTON HAS BACKED AWAY FROM HIS CAMPAIGN PROMISE TO LOWER THE CAP ON HOW MUCH A PAC CAN GIVE TO 1000 FROM 5000 BUT HE WILL SUGGEST WAYS TO RESTRICT THE UNLIMITED CONTRIBUTIONS THAT CORPORATIONS AND RICH INDIVIDUALS CAN GIVE TO POLITICAL PARTIES 9305070086 930507 BUSINESS BRIEF CISCO SYSTEMS INC FISCAL THIRDQUARTER PROFIT NEARLY DOUBLED ON SALES RISE CISCO SYSTEMS INC CONTINUED TO BENEFIT FROM A CORPORATE TREND TOWARD THE USE OF NETWORKS OF COMPUTERS REPORTING THAT FISCAL THIRDQUARTER NET INCOME NEARLY DOUBLED ON AN 89 INCREASE IN SALES CISCO WHICH MAKES EQUIPMENT THAT TIES COMPUTERS TOGETHER IN SUCH NETWORKS SAID NET FOR THE QUARTER ENDED APRIL 25 WAS 463 MILLION OR 36 CENTS A SHARE COMPARED WITH 232 MILLION 18 CENTS A SHARE IN THE YEARAGO QUARTER THE YEARAGO FIGURES ARE ADJUSTED FOR A 2FOR1 STOCK SPLIT IN MARCH THE EARNINGS CAME IN AT THE HIGH END OF ANALYSTS' ESTIMATES WHICH RANGED FROM 31 CENTS A SHARE TO 36 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC CISCO BASED IN MENLO PARK CALIF SAID SALES WERE 1724 MILLION COMPARED WITH 914 MILLION A YEAR EARLIER THE EARNINGS WERE ANNOUNCED AFTER THE STOCK MARKET HAD CLOSED CISCO SHARES ENDED DOWN 75 CENTS AT 4525 IN OVERTHECOUNTER TRADING 9305070085 930507 LEISURE & ARTS THE MOBILE GUIDE HIMALAYAS UNFOLD FROM THE WINDOW SEAT BY KAREN SWENSON LHASA TIBET LEAVING TIBET IS ALMOST AS DIFFICULT A TASK AS ENTERING IT THE LHASA AIRPORT IS TWO HOURS AWAY FROM TOWN FOR REASONS ONE ASSUMES ARE MILITARY THROUGH INCREDIBLY BARREN BUT MAGNIFICENT MOUNTAIN LANDSCAPE THE ONLY REGULAR MODE OF TRANSPORT IS THE BUSES WHICH LEAVE FROM THE 100PERNIGHT HOLIDAY INN AT 430 AM BUT THEY ARE EXCLUSIVELY FOR THAT HOTEL'S GUESTS THIS PRESENTS A PROBLEM TO THOSE WHO HAVE CHOSEN TO RESIDE AT THE YAK HOTEL FOR 8 A NIGHT I WAS PREPARED TO GO TO THE HOLIDAY INN AT 4 AM AND BRIBE MY WAY ONTO A BUS THIS IS AN ACCEPTED ALTHOUGH NOT CONDONED PRACTICE LIKE CHANGING BLACK LABEL SCOTCH INTO BLACKMARKET KYAT THE BURMESE CURRENCY OUTSIDE THE AIRPORT IN RANGOON BUT IT MADE MY FELLOW TRAVELER A YOUNG CANADIAN MAN NERVOUS HE WENT AND FOUND A FAMILY OF TIBETANS ALSO TENANTS AT THE YAK WHO HAD HIRED A VAN TO TAKE THEM TO THE AIRPORT AND WERE WILLING TO SHARE BOTH VEHICLE AND EXPENSE THEREFORE AT 5 AM I FOUND MYSELF WITH MY BAGS FLAPPING MY ARMS TO KEEP WARM IN THE COURTYARD OF THE YAK WITH AN EXTENDED FAMILY OF TIBETANS THAT INCLUDED A YOUNG WOMAN DOLMA A COMPUTER EXPERT OF SOME SORT IN SWITZERLAND HER MOTHER FATHER UNCLE AND ASSORTED RELATIVES THEY HAD FLED THE COUNTRY IN 1959 AND THIS WAS THEIR SECOND RETURN VISIT TO SEE RELATIVES THE TIBETANS' BAGGAGE FORMED AN IMPRESSIVE EVEREST HEAP IN THE CENTER OF THE COURTYARD A FEW MINUTES LATER THE CANADIAN CAME DOWN AND WE ALL STOOD ABOUT FLAPPING OUR ARMS LIKE A CONVENTION OF CROWS AS TIME PASSED AND THERE WAS NO SIGN OF THE VAN THE MOTHER AND I BEGAN COMMUNICATING IN MATERNAL LANGUAGE WE WOULD SMILE AT EACH OTHER AND THEN WRING OUR HANDS FERVENTLY TO EXPRESS OUR FRUSTRATION AND ANXIETY THE VAN FINALLY ARRIVED AT 630 WHICH MEANT WE HAD A WORRYING DRIVE THROUGH LANDSCAPE THAT APPEARED TO BE A BONEYARD OF MOUNTAINS WITH ANGULAR RIDGES AROUND A DESOLATE LAKESHORE AT THE AIRPORT A SHODDY ORANGEISH BUILDING WE JOINED THE TAIL END OF A LINE OF PEOPLE WHO HAD BEEN MOVING SLOWLY TOWARD THE CHECKIN COUNTER KICKING THEIR BAGS IN FRONT OF THEM THE COMBINED MASS OF OUR BAGS WAS SUCH THAT IT WAS LIKE MOVING A DEAD ELEPHANT ALONG THROUGH ROOMS AND PASSAGES ONE OF THE BAGS APPEARED TO CONTAIN AN ANVIL IT WAS ALWAYS THE LAST TO BE MOVED BY THE UNCLE WHO WOULD DRAG IT WITH ENORMOUS EFFORT TO ITS NEW POSITION IT TOOK AN HOUR TO GET THROUGH THE FIRST ROOM IN THE HALL THAT LED TO THE NEXT ROOM DOLMA WAS ASKED BY A CHINESE OFFICIAL IN A FILTHY UNIFORM IF SHE WOULDN'T LIKE TO HAVE A FREE BLOOD TEST AND TAKE ADVANTAGE OF THE WONDERS OF MODERN CHINESE MEDICINE I DON'T UNDERSTAND TIBETAN BUT SHE SOUNDED LIKE A CAT THAT'S INADVERTENTLY CAUGHT A CLAW IN AN ELECTRICAL OUTLET WHEN SHE SPOKE TO ME IN ENGLISH THE REITERATED WORD WAS DISGUSTING UPON ENTERING TIBET ONE IS ASKED TO LIST ALL OF ONE'S CURRENCIES AND VALUABLES WE WAITED TENSELY FOR THE OFFICIALS TO ASK FOR THESE FORMS AND GO OVER THEM WITH US THEY COLLECTED THEM WITHOUT COMMENT ADDING THEM TO A NEAT BUREAUCRATIC HEAP OUR LUGGAGE WAS PUT THROUGH AN XRAY MACHINE BUT THE YOUNG MAN TENDING IT NEVER LOOKED AT THE SCREEN PREFERRING INSTEAD TO CONTINUE HIS CONVERSATION WITH A FRIEND WHEN I SET OFF THE SECURITY MACHINE WITH A BIG BRASS BRACELET I WAS WEARING NO ONE BOTHERED TO COME TO SEE WHY I HAD SET THE ALARM OFF NO ONE LOOKED AT THE CAMERA AND LEAD FILM BAG I SET OUT TO BE GONE THROUGH I COULD HAVE SMUGGLED 16 BOMBS AND A BATTALION'S WORTH OF M16S ONTO THE FLIGHT THEY DID COLLECT THE EXIT TAX AND IT HAD TO BE IN THE TOURIST SCRIP RATHER THAN REAL MONEY WE THEN WENT INTO A BARN OF A HALL WHERE A CAN OF SODA COST A DOLLAR HERE AT LEAST IT WAS CLEAR THEY HAD LEARNED SOMETHING FROM OTHER AIRPORTS WHEN WE GOT ON THE PLANE I WATCHED WITH BEMUSEMENT AS THE TIBETAN UNCLE PACKED HIS LUGGAGE IN AROUND HIM ONE CARRYON ON THE FLOOR ANOTHER ON HIS LAP AND A YAK BUTTER CHURN BETWEEN HIM AND THE WINDOW THE PLUNGER BISECTED THE WINDOW SO WE HAD TO GET HIM TO PUSH IT TO ONE SIDE WHEN WE STARTED PHOTOGRAPHING THE MOUNTAINS POSSIBLY IN A LIFETIME THERE IS NO BETTER WAY TO SPEND A FEW HOURS IN THE AIR THAN FLYING FROM LHASA TO KATMANDU OR VICE VERSA BECAUSE YOU FLY ALONG THE LINE OF THE HIMALAYAS PASSING AT WHAT FREQUENTLY FEELS LIKE TOUCHING DISTANCE THE FABLED SNOWY PEAKS WHILE WE SCRUNCHED OURSELVES THIS WAY AND THAT OR LEANED ACROSS OUR SEAT PARTNERS WE WERE SERVED A MEAL AS SURREAL AS THE LANDSCAPE OUT THE WINDOW APPETIZER THREE GOLDFOILWRAPPED ITALIAN CHOCOLATES FOLLOWED BY TWO MENTHOLATED COUGH DROPS FROM A LARGE BAG NUT COURSE LARGE BAG OF CASHEWS CLEAR THE PALATE WITH TWO MORE COUGH DROPS ENTREE TWO SALT EGGS AN APPLE AND MORE COUGH DROPS DESSERT A LARGE TUBE OF CREAM BISCUITS BEVERAGE CANNED ORANGE JUICE OR BEER NO ONE WILL EVER LOSE WEIGHT ON SOUTHWEST CHINA AIRLINES WHILE WATCHING THE HIMALAYAS PASS BY MS SWENSON A POET IN BROOKLYN NY TRAVELS FREQUENTLY THROUGHOUT ASIA 9305070084 930506 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 TAUBMAN CENTERS INC'S FIRSTQUARTER EARNINGS OF EIGHT CENTS A SHARE MAY OR MAY NOT HAVE BEEN AN EARNINGS SURPRISE THE ANALYSTS WHO FOLLOW THE REAL ESTATE INVESTMENT TRUST USE DISTRIBUTABLE CASH FLOW TO MEASURE PERFORMANCE RATHER THAN NET INCOME THE DISTRIBUTABLE CASH FLOW WAS IN LINE WITH ANALYSTS' ESTIMATES BECAUSE OF AN ERROR IN THE ZACKS INVESTMENT RESEARCH DATABASE TAUBMAN CENTERS WAS INCORRECTLY SHOWN AS A NEGATIVE SURPRISE IN YESTERDAY'S QUARTERLY EARNINGS SURPRISES TABLE 9305070083 930507 DURAMED PROBE ENDS WITH 500000 FINE THREE GUILTY PLEAS CINCINNATI DURAMED PHARMACEUTICAL INC SAID IT SETTLED A JUSTICE DEPARTMENT INVESTIGATION OF ITS DRUGTESTING AND MANUFACTURING PRACTICES BY AGREEING TO PAY A 500000 FINE PLEADING GUILTY TO THREE MISDEMEANORS AND COOPERATING IN ANY INVESTIGATIONS OF FORMER OR PRESENT DIRECTORS OFFICERS AND EMPLOYEES THE SETTLEMENT IS PART OF A WIDERANGING TWOYEAROLD FEDERAL INVESTIGATION OF GENERIC DRUG COMPANIES THAT HAS NETTED CONVICTIONS AND FINES AGAINST SEVERAL COMPANIES AND EXECUTIVES E THOMAS ARINGTON DURAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID YESTERDAY THE COMPANY HAS NOT RECEIVED WORD THAT ANY EMPLOYEES OR DIRECTORS ARE UNDER INVESTIGATION DURAMED SAID THE MISDEMEANOR COUNTS TO WHICH IT PLEADED GUILTY RELATE TO VIOLATIONS OF TESTING AND MANUFACTURING RESTRICTIONS IN ONE CASE IT SAID IT MANUFACTURED DRUGS FOR NAUSEA AND HIGH BLOOD PRESSURE USING A PROCESS DIFFERENT THAN THE ONE USED TO MAKE THE VERSIONS TESTED AND APPROVED IN 1986 BY THE FOOD AND DRUG ADMINISTRATION IT ALSO CHANGED THE PROCESS USED TO COAT THE NAUSEA DRUG IN 1987 WITHOUT FDA APPROVAL IN NOVEMBER 1990 DURAMED AGREED TO WITHDRAW MANY OF ITS DRUGS FROM THE MARKET DUE TO FDA CONCERNS OVER THE COMPANY'S COMPLIANCE WITH TESTING AND MANUFACTURING RULES SEPARATELY THE GENERICDRUG MAKER SAID THAT ALTHOUGH ITS FINANCIAL CONDITION REMAINS FRAGILE IT EXPECTS TO REPORT A MODEST PROFIT FOR THE FIRST QUARTER FOR 1992'S FIRST QUARTER THE COMPANY HAD A LOSS 459000 OR SEVEN CENTS A SHARE ON SALES OF 31 MILLION HURT BY THE WITHDRAWAL OF A NUMBER OF ITS PRODUCTS IT HASN'T REPORTED A PROFIT SINCE THE THIRD QUARTER OF 1991 THE COMPANY SAID YESTERDAY THAT IT HAD A LOSS OF 41 MILLION OR 63 CENTS A SHARE IN THE FOURTH QUARTER OF 1992 COMPARED WITH A LOSS OF 166 MILLION OR 26 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES WERE 54 MILLION UP FROM 23 MILLION A YEAR EARLIER THE FOURTHQUARTER LOSS REFLECTS THE 500000 FDA FINE AS WELL AS 18 MILLION IN CHARGES FOR ABANDONING LEASES AND DISPOSING OF ASSETS 9305070082 930507 KANTOR PREDICTS JOBS GAIN FROM MEXICO TRADE PACT WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE US WOULD GAIN 200000 INDUSTRIAL JOBS BY 1995 AS A RESULT OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE QUESTION OF WHETHER THE TRADE PACT WOULD CREATE OR COST JOBS HAS BEEN AT THE CORE OF THE DEBATE OVER THE ACCORD A GRASSROOTS COALITION OF UNIONS AND CONSUMER GROUPS CONTENDS THAT THE AGREEMENT WILL COST HUNDREDS OF THOUSANDS OF JOBS AS US COMPANIES MOVE TO MEXICO AN ECONOMIST AT THE US TRADE REPRESENTATIVE'S OFFICE SAID THE ADMINISTRATION HAD REVIEWED 25 STUDIES OF THE AGREEMENT'S JOB IMPACT AS WELL AS TRENDS IN EXPORTS TO ARRIVE AT A NEW SHORTTERM PROJECTION ABOUT 700000 INDUSTRIAL JOBS CURRENTLY RESULT FROM US EXPORTS TO MEXICO MR KANTOR SAID THAT NUMBER WOULD RISE TO ABOUT 900000 IF THE TRADE PACT IS PASSED AND WOULD DROP TO ABOUT 500000 IF THE PACT IS DEFEATED HE SAID SEPARATELY MR KANTOR SAID IN AN INTERVIEW THAT HE WAS ENCOURAGED THAT SEVEN LARGE ENVIRONMENTAL GROUPS SAID THEY WOULD BACK THE NORTH AMERICAN FREE TRADE AGREEMENT UNDER CERTAIN CONDITIONS ON WEDNESDAY MR KANTOR AND ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER MET WITH NINE ENVIRONMENTAL GROUPS TO DISCUSS THEIR CONCERNS 9305070081 930507 BUSINESS BRIEF CRAY COMPUTER CORP SUPERCOMPUTER FIRM'S LOSSES CONTINUED INTO FIRST PERIOD CRAY COMPUTER CORP CONTINUED ITS STRING OF LOSSES IN THE FIRST QUARTER AND SAID DELIVERY OF ITS FIRST DEMONSTRATION MACHINE HAD BEEN DELAYED UNTIL THE END OF MAY THE SUPERCOMPUTER COMPANY FOUNDED BY INDUSTRY PIONEER SEYMOUR CRAY REPORTED A LOSS OF 115 MILLION OR 47 CENTS A SHARE COMPARED WITH A LOSS OF 139 MILLION OR 58 CENTS A SHARE A YEAR AGO REVENUE WAS FLAT AT 83000 CRAY WHICH HAS YET TO SELL ITS FIRST MACHINE HAS BEEN HOBBLED BY LOSSES OF MORE THAN 130 MILLION SINCE ITS INCEPTION IN 1989 AND HAS SEEN ITS CASH POSITION DWINDLE TO ABOUT 195 MILLION THE COMPANY HAD HOPED TO DELIVER THE FIRST DEMONSTRATION AND EVALUATION MODEL OF ITS CRAY3 MACHINE BY THE END OF THE FIRST QUARTER THE COLORADO SPRINGS COLO COMPANY IS A SPINOFF OF CRAY RESEARCH INC 9305070080 930507 BUSINESS BRIEF RISER FOODS INC CONCERN'S PROFIT ROSE 12 IN LATEST 12WEEK PERIOD RISER FOODS INC REPORTED NET INCOME OF 15 MILLION OR 18 CENTS A SHARE IN THE 12 WEEKS ENDED APRIL 3 UP 12 FROM 13 MILLION OR 16 CENTS A SHARE A YEAR AGO ENDING FIVE CONSECUTIVE QUARTERS OF DECLINING EARNINGS DURING THE 12WEEK PERIOD THE COMPANY HAD SALES OF 246 MILLION UP 10 FROM 2235 MILLION IN THE YEAREARLIER QUARTER THE FOOD RETAILER AND DISTRIBUTOR WHICH IS BASED IN BEDFORD HEIGHTS OHIO ALSO SAID IT EXPECTS SALES OF 11 BILLION FOR THE FISCAL YEAR ENDING JULY 3 UP 12 FROM 985 MILLION IN FISCAL 1992 THE COMPANY SAID IT PLANS TO CONTINUE ITS CAPITAL SPENDING TO ACQUIRE NEW RETAIL LOCATIONS EXPAND AND MODERNIZE EXISTING ONES AND UPGRADE ITS DATA PROCESSING AND WHOLESALE DISTRIBUTION EQUIPMENT IT SAID CAPITAL SPENDING IN THE CURRENT YEAR AND LAST YEAR TOTALED 50 MILLION AND SAID IT EXPECTS TO SPEND 26 MILLION IN THE 1994 FISCAL YEAR 9305070079 930507 RETAILING BROAD GROCERY PRICE CUTS MAY NOT PAY BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL WHAT WORKS FOR WALMART MAY NOT BE GOOD FOR THE NATION'S GROCERS THAT'S THE BOTTOM LINE OF AN EXTENSIVE STUDY OF WHETHER SUPERMARKETS SHOULD ADOPT THE EVERYDAY LOW PRICES STRATEGY THAT HELPED PROPEL WALMART STORES INC TO BECOME AMERICA'S LARGEST RETAILER THE GROCERY INDUSTRY IS HOTLY DEBATING THE APPROACH AND SOME BIG CONSUMERPRODUCT MANUFACTURERS ARE BACKING IT BUT UNIVERSITY OF CHICAGO RESEARCHERS NEXT WEEK WILL TELL SUPERMARKET EXECUTIVES THAT EVERYDAY LOW PRICING PROBABLY CAN'T MATCH THE PROFITS GENERATED FROM MOST GROCERS' TRADITIONAL TRAFFIC BUILDERWEEKLY SPECIALS ON A FEW PRODUCTS AND HIGHER PRICES ON EVERYTHING ELSE IN THE EXPERIMENT A MARKETING RESEARCH TEAM FROM THE UNIVERSITY'S GRADUATE SCHOOL OF BUSINESS MANIPULATED PRICES IN 19 PRODUCT CATEGORIES IN A CHICAGOAREA SUPERMARKET CHAIN SOME STORES USED THE STANDARD PRICING APPROACH CALLED HIGHLOW IN THE INDUSTRY OTHERS WERE CONVERTED TO EVERYDAY LOW PRICING IN WHICH PRICES WERE REDUCED AND KEPT LOW THE RESULT STORES FEATURING EVERYDAY LOW PRICING RANG UP SLIGHTLY MORE SALES BUT A LOT LESS PROFIT THAN THE HIGHLOW STORES OVERALL PROFITS IN THE CATEGORIES THAT USED EVERYDAY LOW PRICING WERE ABOUT 17 BELOW WHAT GROCERS WOULD HAVE MADE WITH THE TRADITIONAL HIGHLOW APPROACH THE RESEARCHERS CALCULATE THEY ATTRIBUTE THE DIFFERENCE TO THE HIGHER PROFIT MARGINS ON ITEMS THAT AREN'T ON SALE EVERYDAY LOW PRICING MAY NOT BE THE MARKETING PANACEA BELIEVED SAYS PROJECT MANAGER MARY E PURK IN FACT SO STRIKING ARE THE FINDINGS THAT THEY RAISE QUESTIONS AS TO WHETHER STORES THAT SAY THEY ARE OFFERING EVERYDAY LOW PRICING REALLY ARE IF THEY ARE IN MANY CASES IT IS PROBABLY WORKING TO THEIR DETRIMENT THE STUDY'S CONCLUSIONS MAY STIFFEN THE RESOLVE OF GROCERS WHO OPPOSE EFFORTS BY PROCTER & GAMBLE CO AND A FEW OTHER BIG MANUFACTURERS TO BRING EVERYDAY LOW PRICING TO THE TYPICAL SUPERMARKET ADVOCATES ARGUE THAT LOWERING PRICES ON MAJOR ITEMS EVERY DAY WILL HELP BUILD BRAND LOYALTY FEND OFF PRIVATELABEL INROADS AND REDUCE MANUFACTURING AND INVENTORY COSTS IN EXCHANGE THE COMPANIES WANT GROCERS TO GIVE UP MUCH OF THE PROMOTION MONEY THEY NOW GET TO PUT CERTAIN PRODUCTS ON SALE A TRADEOFF THAT LEAVES MANY SUPERMARKET OPERATORS SKEPTICAL SOME DOUBT THEY WILL END UP WITH AS MUCH PROFIT IN THE TILL MANY CONSUMERS ALSO SEEM TO FAVOR HIGHLOW PRICING THE RESEARCHERS FOUND THAT SPECIALS ADD EXCITEMENT TO WHAT CAN BE A DREARY CHORE EVERYDAY LOW PRICING GOES AGAINST WHAT SHOPPING'S ALL ABOUT SAYS STEPHEN J HOCH A MARKETING PROFESSOR OVERSEEING THE MULTIYEAR STUDY OTHER FINDINGS ABOUT PRICING IN THE RESEARCH STUDY SHOW THAT INCOME ALONE DOESN'T DETERMINE THE PRICE SENSITIVITY OF CONSUMERS THE PROXIMITY OF THE NEAREST SUPERMARKET COMPETITOR IS ALSO A BIG FACTOR STORES WITH MANY ELDERLY MINORITY AND WORKING WOMEN CUSTOMERS ARE UNDER MORE PRESSURE TO KEEP PRICES DOWN CUSTOMERS BUY MORE OF A PRODUCT WHEN IT'S FEATURED IN MULTIPACKS EVEN THOUGH THE PERUNIT PRICE ISN'T A BARGAIN FOR INSTANCE WHEN PAPER TOWELS WERE MARKED 2/149 SALES FAR SURPASSED THOSE OF SINGLE ROLLS MARKED 75 CENTS REQUIRING SHOPPERS TO USE INSTORE COUPONS TO GET A DISCOUNT IS MUCH MORE PROFITABLE FOR GROCERS THAN REDUCING THE PRODUCT'S SHELF PRICE THE RESEARCHERS FOUND THAT ONLY 58 OF SHOPPERS BUYING A PRODUCT USED A COUPON EVEN THOUGH THEY MERELY HAD TO TAKE IT FROM THE SHELF TO THE CASHIER THE OTHER 42 PAID FULL PRICE SOME ITEMS ARE MORE CONDUCIVE TO DISCOUNTING FROZEN ENTREES AND SOFT DRINKS MOVED MORE QUICKLY WHEN PUT ON SALE THAN DID DISH DETERGENTS PEOPLE AREN'T GOING TO WASH DISHES MORE OFTEN IF SOAP IS CHEAPER WHEREAS THEY PROBABLY WILL DRINK MORE SODA POP IF IT'S SOLD AT A DISCOUNT THE RESEARCHERS SAY THE RESEARCHERS ANALYZED EIGHT MONTHS OF SCANNER DATA TO REACH THEIR CONCLUSIONS WHICH WILL BE REPORTED NEXT WEEK AT THE FOOD MARKETING INSTITUTE'S SHOW IN CHICAGO THE SUPERMARKET INDUSTRY'S BIGGEST THE RESEARCHERS ARE ALSO LIKELY TO DELIVER A MESSAGE ABOUT PRICING THAT MAY MAKE SOME IN THEIR AUDIENCE SQUIRM MANY GROCERS ARE MISSPENDING THEIR MARKETING DOLLARS BY SPREADING THEM EQUALLY ACROSS AN ENTIRE CHAIN INSTEAD THE TEAM WILL CONTEND SUPERMARKET OPERATORS SHOULD BE ALLOCATING DIFFERENT AMOUNTS ACCORDING TO CONSUMER NEEDS AND CHARACTERISTICS OF A STORE'S MICROMARKET IN SOME OF THOSE MARKETS THE EMPHASIS SHOULD BE ON PRICE PROMOTIONS THE RESEARCHERS SAY BUT IN OTHERS CUSTOMERS MAY BE MORE INTERESTED IN THE QUALITY OF PRODUCE AND MEATS THE VARIETY OF GOODS AND OTHER SHOPPING AMENITIES TOO OFTEN THE MAIN REASON RETAILERS ADOPT CERTAIN PRICES IS TO MATCH THEIR COMPETITION THEY OUGHT TO PAY MORE ATTENTION TO THE PEOPLE COMING INTO THEIR STORES SAYS MR HOCH IN THEIR ANALYSIS OF EVERYDAY LOW PRICING THE RESEARCHERS MOVED PRICES UP AND DOWN 10 IN THE KEY CATEGORIES WHICH INCLUDED BEER CEREALS CIGARETTES DETERGENTS FROZEN ENTREES AND JUICES AND SOFT DRINKS AND ACCOUNTED FOR ABOUT 30 OF AN AVERAGE STORE'S SALES IN STORES WITH EVERYDAY LOW PRICING IN THOSE CATEGORIES PRICES WERE DROPPED AN ADDITIONAL 10 IN STORES WITH A HIGHLOW STRATEGY PRICES WERE RAISED 10 TO TEST CONSUMER RESPONSE SOME RESULTS WERE SURPRISING FOR EXAMPLE WHEN PRICES OF BUDGET GOURMET FROZEN ENTREES WERE DROPPED FURTHER IN EVERYDAY LOW PRICING STORES UNIT SALES ROSE 10 BUT OVERALL CATEGORY PROFITS FELL 11 CONVERSELY WHEN PRICES WERE MARKED UP IN HIGHLOW STORES UNIT VOLUME DECLINED 8 BUT THE CATEGORY'S PROFITS ROSE 1 WE THOUGHT CONSUMERS WOULD BE MORE LIKELY TO NOTICE A PRICE INCREASE THAN A DECREASE BUT THERE WAS ABSOLUTELY NO EVIDENCE OF THAT MR HOCH SAYS WHILE EVERYDAY LOW PRICING MAY MAKE SENSE AS A MARKETENTRY STRATEGY MR HOCH QUESTIONED ITS VALUE AS A DEFENSIVE ONE WHERE YOU HAVE CUSTOMERS ALREADY COMING TO YOUR STORE WHY WOULD YOU GO TO EVERYDAY LOW PRICING TO INCREASE YOUR MARKET SHARE YOU'RE SPENDING ALL YOUR EFFORT ON YOUR OPPOSITION AND IGNORING A FAIRLY CONTENT INSTALLED BASE MOREOVER HE SAYS GROCERS WHO CONVERT TO AN EVERYDAY LOW PRICING STRATEGY ARE LIKELY TO HAVE TO CUT BACK ON OTHER SERVICES TO CUT COSTS AND MAINTAIN PROFIT MARGINS THE STUDY IS BEING CONDUCTED IN 88 STORES OF DOMINICK'S FINER FOODS INC PATRONIZED BY AN ESTIMATED ONE MILLION PEOPLE EACH WEEK EIGHTEEN COMPANIES ARE SPONSORING THE PROJECT INCLUDING CAMPBELL SOUP CO COLGATEPALMOLIVE CO GENERAL MILLS INC GILLETTE CO HJ HEINZ CO'S STARKIST UNIT PEPSICO INC PHILIP MORRIS COS PROCTER & GAMBLE QUAKER OATS CO AND SCOTT PAPER CO AS FOR THE POTENTIAL IMPACT OF THE PRICING RESEARCH ON CONSUMER GROCERY BILLS MR HOCH SAYS THE IDEA IS TO BE MORE EFFICIENT IN SPENDING DOLLARS WHICH SHOULD BRING THE COST OF BUSINESS DOWN IF EXECUTED APPROPRIATELY THE LONGTERM BENEFIT SHOULD BE LOWER FOOD BILLS THAT'S THE THEORY ANYWAY 9305070078 930507 BUSINESS BRIEF GENERAL ELECTRIC CO ABOUT 75 WILL BE LAID OFF FROM ONE R&D OPERATION GENERAL ELECTRIC CO SAID IT IS LAYING OFF ABOUT 75 PEOPLE FROM ITS 1600PERSON CORPORATE RESEARCH AND DEVELOPMENT CENTER IN SCHENECTADY NY REFLECTING THE SLUMP IN THE DEFENSE AND AEROSPACE INDUSTRIES A SPOKESMAN SAID THAT ABOUT 55 OF THOSE BEING LAID OFF ARE SCIENTISTS AND ENGINEERS THE REST ARE SUPPORT STAFF HE NOTED THAT THE CORPORATE R&D CENTER DOES ONLY A FRACTION OF GENERAL ELECTRIC'S TOTAL RESEARCH SINCE EACH OPERATING DIVISION HAS ITS OWN RESEARCH OPERATIONS THE SPOKESMAN ALSO SAID THAT THE COMPANY VIEWS THE LAYOFFS AS A MINOR ADJUSTMENT TO BRING OUR PROGRAMS IN LINE WITH ECONOMIC REALITIES IN COMPARISON WITH RECENT ACTIONS AT OTHER MAJOR CORPORATE INDUSTRIAL LABORATORIES GE SAID IT WILL PROVIDE OUTPLACEMENT HELP TO THOSE LAID OFF INCLUDING EFFORTS TO FIND THEM COMPARABLE WORK IN GE'S VARIOUS BUSINESS SEGMENTS 9305070077 930507 MARKETING & MEDIA NBC NEWS PRESIDENT LACK SWITCHES PRODUCERS' JOBS NEW YORK THE EXECUTIVE PRODUCERS OF NBC'S TODAY SHOW AND THE NEW PRIMETIME NEWS MAGAZINE PRIME STORY WILL SWITCH JOBS THE FIRST SIGNIFICANT CHANGES MADE BY NEW NBC NEWS PRESIDENT ANDREW LACK STEVE FRIEDMAN WHO MADE HIS MARK AT GENERAL ELECTRIC CO'S NBC NETWORK AS EXECUTIVE PRODUCER OF THE MORNING SHOW TODAY FROM MAY 1980 TO JUNE 1987 WILL RETURN TO THAT PROGRAM HE HAD BEEN IN CHARGE OF DEVELOPING PRIME STORY TODAY EXECUTIVE PRODUCER JEFF ZUCKER WHO ALSO HELD THE DUAL JOB OF EXECUTIVE PRODUCER OF NBC NIGHTLY NEWS FOR A BRIEF PERIOD EARLIER THIS YEAR WILL MOVE TO PRIME STORY MR LACK ALSO ORDERED OTHER CHANGES IN PRIME STORY WHICH IS EXPECTED TO LAUNCH SOMETIME THIS SUMMER THE WEEKLY PROGRAM WHICH WILL BE RETITLED WILL BE ANCHORED BY TODAY COANCHOR KATIE COURIC AND NIGHTLY NEWS ANCHOR TOM BROKAW NEITHER WILL LEAVE THEIR CURRENT JOB FAITH DANIELS MIKE SCHNEIDER AND FRED FRANCIS WHO HAD BEEN ANNOUNCED AS THE SHOW'S ANCHORS WILL BE REASSIGNED MR LACK SAID HE FOLLOWED HIS INSTINCTS IN MAKING THE CHANGES WHICH HE SAID WILL PLAY BETTER TO THE SKILLS OF THE VARIOUS EMPLOYEES INVOLVED AS FOR MR BROKAW WHOSE CONTRACT IS UP IN AUGUST MR LACK SAID NO RENEWAL AGREEMENT HAS BEEN REACHED BUT THE ASSUMPTION OF COURSE IS THAT WE'D LIKE TOM TO STAY 9305070076 930507 ECONOMY CANADA RULES OUT LEVIES ON US CARBON STEEL PLATE OTTAWA THE CANADIAN INTERNATIONAL TRADE TRIBUNAL RULED AGAINST A BID BY CANADIAN STEEL PRODUCERS FOR PUNITIVE IMPORT LEVIES ON CARBON STEEL PLATE FROM THE US THE TRIBUNAL DETERMINED THAT SHIPMENTS OF US CARBON STEEL PLATE TO CANADA WEREN'T INJURING CANADIAN PRODUCTION SUCH STEEL IS USED IN CONSTRUCTION AND IN HEAVY EQUIPMENT SUCH AS RAIL CARS THE AGENCY SAID THAT IMPORTS OF LOW PRICED CARBON STEEL PLATE FROM EIGHT OTHER COUNTRIES WERE INJURING CANADIAN PRODUCTION AS A RESULT ANTIDUMPING DUTIES RANGING FROM 23 TO 54 WILL BE IMPOSED ON THEIR CARBON STEEL PLATE SHIPMENTS TO CANADA THE EIGHT COUNTRIES ARE BRITAIN GERMANY DENMARK CZECH REPUBLIC BELGIUM ROMANIA BRAZIL AND THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA THE TRIBUNAL DIDN'T SAY WHY US STEEL PRODUCERS WEREN'T INCLUDED IN THE INJURY RULING IT SAID IT WILL ISSUE THE REASONS FOR ITS FINDING MAY 21 THE CASE AROSE FROM AN IMPORT COMPLAINT BY ALGOMA STEEL INC A SUBSIDIARY OF DOFASCO INC HAMILTON ONT 9305070075 930507 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 3/4 LOW 2 3/4 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 309 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 262 TWO MONTHS 263 THREE MONTHS 270 SIX MONTHS 292 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 3 ONE MONTH 302 THREE MONTHS 307 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 716 60 DAYS 727 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 716 60 DAYS 726 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 9305070074 930507 WORLD MARKETS TOKYO SHARES END MIXED THOUGH NIKKEI FALLS LONDON FRANKFURT STOCKS GIVE UP EARLY GAINS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARE PRICES ENDED MIXED THURSDAY THOUGH THE NIKKEI INDEX LOST 14 AS INVESTORS HUNTED FOR BARGAINS AND TOOK PROFITS AFTER A THREEDAY JAPANESE HOLIDAY LONDON STOCKS FELL AFTER TRADING TURNED LISTLESS ERODING EARLY FIRMNESS FRANKFURT EQUITIES ALSO GAVE UP EARLY GAINS AND FINISHED LITTLE CHANGED AFTER GERMANY DIDN'T REDUCE INTEREST RATES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10602 DOWN 015 APPAREL RETAILER STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9317 UP 183 OR 2 WITH GAP OF THE US POSTING A 74 GAIN IN ITS LOCAL CURRENCY HEALTH CARE STOCKS TRAILED AT 9726 DOWN 179 OR 18 WITH US HEALTHCARE OF THE US SLIDING 66 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH RALLIED 46461 POINTS IN THE PREVIOUS TRADING SESSION LAST FRIDAY SLUMPED 29715 POINTS TO 2062203 IN TOKYO ON FRIDAY THE NIKKEI INDEX EASED 2972 POINTS TO CLOSE THE MORNING SESSION AT 2059231 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A FIRM 600 MILLION SHARES DOWN FROM ABOUT 6999 MILLION SHARES LAST FRIDAY BUT GAINERS OUTNUMBERED LOSERS 594480 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 2803 POINTS LAST FRIDAY FELL 946 TO 161133 THE BROAD TOKYO MARKET SHOWED SIGNS OF RESILIENCE AFTER THE GOLDEN WEEK HOLIDAY DESPITE FRESH DATA SUCH AS AN APRIL AUTO SALES SLUMP THAT REVEALED CRACKS IN JAPAN'S ATTEMPT AT AN ECONOMIC RECOVERY AND THE CONSENSUS WAS FOR GAINS IN COMING DAYS INSTITUTIONAL INVESTORS WHICH WERE AMONG STRONG BUYERS AT THE END OF LAST WEEK SOUGHT QUICK RETURNS THURSDAY THE HOLIDAY PROVIDED A FLOAT ON SECURITIES TRANSACTIONS THAT ALLOWED LARGE INVESTORS ESSENTIALLY TO LOCK IN PROFITS BASKET ARBITRAGERS PUSHED SHARE PRICES LOWER EARLY IN THE DAY OFFERING BARGAIN HUNTERS AN ENTRY TO BUY THE NIKKEI SPENT THE AFTERNOON WAVERING AT HIGHER LEVELS WITH THE JAPANESE YEN'S STABILITY AGAINST THE DOLLAR SETTING THE TONE FOR DEALINGS BEFORE ANOTHER ROUND OF ARBITRAGESELLING AND PROFITTAKING SET IN DURING THE LAST HOUR SEPARATELY JAPAN'S FINANCE MINISTRY SAID FOREIGN INVESTORS WERE NET BUYERS OF JAPANESE STOCKS IN THE FISCAL YEAR ENDED MARCH 31 BUYING 575 MILLION MORE OF EQUITIES THAN THEY SOLD IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 102 POINTS TO 27863 THE FT 30STOCK INDEX DROPPED 141 POINTS TO 21886 VOLUME WAS 6795 MILLION SHARES COMPARED WITH 539 MILLION SHARES A DAY EARLIER AFTER A FIRM START ANY POSITIVE SIGNAL TO SUSTAIN BUYING WAS ELUSIVE PUSHING EVEN MORE INVESTORS TO THE SIDELINES AND THEN A DOWNTURN IN THE FUTURES PIT LED STOCK PRICES LOWER THE AFTERNOON SESSION ALSO WAS CLOUDED BY FEARS ABOUT US EMPLOYMENT DATA FOR LAST MONTH TO BE RELEASED TODAY A DISAPPOINTING REPORT COULD CAST FURTHER DOUBT ABOUT THE US ECONOMY'S STRENGTH WHICH IN TURN COULD HURT LONDON STOCKS PARIS SHARES FELL ON CONFIRMATION OF BAD NEWS ABOUT THE FRENCH BUDGET AND SOCIAL SECURITY DEFICITS WHICH COULD REQUIRE HIGHER TAXES AND ON WALL STREET'S LACK OF DYNAMISM MILAN PRICES WHICH OPENED ON A WEAK NOTE ON BLUECHIP SELLING FOR PORTFOLIO ADJUSTMENTS FINISHED MIXED AFTER ITALIAN PREMIER CARLO A CIAMPI'S INAUGURAL ADDRESS TO PARLIAMENT LIFTED THE MARKET OFF ITS LOWS MADRID STOCKS DRIFTED LOWER AFTER STARTING OUT FIRMER WHEN FRANCE CUT INTEREST RATES BUT THEN RETREATING WHEN GERMANY LEFT ITS RATES UNCHANGED IN STOCKHOLM SHARES ROSE TO A RECORD FOR THE SECOND CONSECUTIVE SESSION ON STRONG BUYING OF BLUE CHIPS BRUSSELS SHARES CLIMBED BROADLY BOLSTERED BY ANTICIPATION OF A CUT IN INTEREST RATES IN SYDNEY STOCK PRICES ROSE LIFTED BY STRONG INTEREST IN THE BANKING SECTOR HONG KONG SHARES FELL ON RUMORS OF A HUGE CORPORATE PLACEMENT OF STOCK IN MANILA AFTER SETTING NEW HIGHS FOR FIVE CONSECUTIVE SESSIONS SHARES RETREATED PARTLY ON DISAPPOINTING NEWS IN THE OIL SECTOR TAIPEI PRICES ADVANCED ON NEWS THAT THE CENTRAL BANK OF CHINA MIGHT CONSIDER CUTTING ITS REDISCOUNT RATE SEOUL STOCKS FELL SHARPLY ON CONTINUED FEARS ABOUT SOUTH KOREA'S ANTICORRUPTION DRIVE AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH PETROLEUM CLIMBED 10 PENCE OR 34 TO 306 PENCE 479 EXCEEDING MARKET EXPECTATIONS FIRSTQUARTER EARNINGS ON A REPLACEMENTCOST BASIS WHICH EXCLUDES THE EFFECTS OF OILPRICE SWINGS MORE THAN DOUBLED TO 249 MILLION 3899 MILLION FROM 95 MILLION A YEAR EARLIER BUT AS EXPECTED THE OIL GIANT HALVED ITS FIRSTQUARTER DIVIDEND TO 21 PENCE A SHARE THE COMPANY ATTRIBUTED THE THIRD QUARTERLY EARNINGS IMPROVEMENT IN A ROW TO COSTCUTTING AND THE DOLLAR'S RISE AGAINST STERLING MORE THAN OFFSETTING LOWER OIL PRICES AND WEAKER PROFIT MARGINS FROM REFINING AND MARKETING OPERATIONS IN FRANKFURT HOCHTIEF DROPPED 28 MARKS OR 25 TO 1102 MARKS 69779 EVEN THOUGH THE CONSTRUCTION COMPANY'S 1992 PRETAX PROFIT ROSE 42 TO 284 MILLION MARKS 1798 MILLION HOCHTIEF'S CONSTRUCTION VOLUME AND ORDERS ROSE IN THIS YEAR'S FIRST FOUR MONTHS COMPARED WITH A STRONG YEAREARLIER PERIOD AND ITS APRIL ORDER BACKLOG WAS 748 BILLION MARKS IN PARIS THOMSONCSF ROSE 12 FRENCH FRANCS TO 1645 FRANCS 3090 SGSTHOMSON MICROELECTRONICS THE DUTCH SEMICONDUCTOR UNIT OF THOMSONCSF CONFIRMED IT IS HOLDING TALKS WITH MITSUBISHI ELECTRIC OF JAPAN THOUGH SGS DECLINED TO COMMENT ON FRENCH NEWS REPORTS THAT THE TWO COMPANIES WILL SOON SIGN AN AGREEMENT ON FLASH MEMORY CHIPS OR TO SPECIFY WHAT THE TALKS INVOLVED THOMSONCSF IS THE ARMSMAKING UNIT OF THE FRENCH STATEOWNED ELECTRONICS COMPANY THOMSON SA IN HONG KONG HUTCHISON WHAMPOA SKIDDED 40 CENTS OR 2 TO 1930 HONG KONG DOLLARS US250 ON PROFITTAKING AMID SPECULATION THAT THE COMPANY CONTROLLED BY THE BILLIONAIRE LI KASHING WAS PLACING 250 MILLION SHARES AT HK1830 EACH OF WHICH ITS PARENT COMANY CHEUNG KONG HOLDINGS WILL TAKE 100 MILLION SHARES CHEUNG KONG'S SHARE PRICE SLID 50 CENTS OR 19 TO HK2630 LATE THURSDAY HUTCHISON PLACED HK458 BILLION OF NEW STOCK WITH INVESTORS 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 9305070073 930507 ECONOMY REVIEW PANEL TELLS US TO RECONSIDER PENALTIES ON CANADIAN LUMBER IMPORTS BY ASRA Q NOMANI AND ROSANNA TAMBURRI STAFF REPORTERS OF THE WALL STREET JOURNAL A USCANADIAN REVIEW PANEL RULED THE US HAS TO RECONSIDER MUCH OF ITS DECISION TO IMPOSE PENALTIES ON CANADIAN SOFTWOOD LUMBER IMPORTS THE PANEL'S ACTION IN A PROTRACTED BATTLE THAT HAS UNSETTLED TRADE RELATIONS BETWEEN THE TWO COUNTRIES COULD PROVIDE AMMUNITION TO US LAWMAKERS AND INTEREST GROUPS WHO ARE SKEPTICAL OF EFFORTS TO CREATE SIMILAR PANELS UNDER THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT AS THE CANADIAN ACTION DEMONSTRATES THE PANELS CAN DIMINISH THE REACH OF INDIVIDUAL GOVERNMENTS' DECISIONS IN THE LUMBER CASE THE PANEL SAID THE US COMMERCE DEPARTMENT HAS TO REEVALUATE SEVERAL PARTS OF A RULING LAST YEAR IN WHICH IT LEVIED 651 PENALTIES ON CANADIAN IMPORTS INTO THE US AT THE TIME THE DEPARTMENT SAID CANADIAN PROVINCIAL TIMBERPRICING POLICIES REPRESENTED AN UNFAIR SUBSIDY TO EXPORTS IT ALSO SAID BRITISH COLUMBIA'S BAN ON CERTAIN LOG EXPORTS ENABLED LUMBER PRODUCERS ON CANADA'S WEST COAST TO LOWER THEIR PRICES THERE WAS DIVIDED OPINION YESTERDAY ABOUT WHETHER THE COMMERCE DEPARTMENT WOULD BE ABLE TO SATISFY THE PANEL'S CONCERNS AND KEEP THE PENALTIES IN PLACE THE TWOCOUNTRY PANEL RULED THAT THE COMMERCE DEPARTMENT DIDN'T CORRECTLY EVALUATE THE ROLE OF SOCALLED STUMPAGE FEES WHICH CANADIAN LUMBER PRODUCERS PAY FOR LOGS CUT ON GOVERNMENT LAND THE COMMERCE DEPARTMENT CONCLUDED THAT THE FEES ARE TOO LOW THE BINATIONAL PANEL ALSO SAID THAT THE COMMERCE DEPARTMENT DIDN'T ADEQUATELY SHOW THAT CANADIAN LOGIMPORT CONTROLS REPRESENT A SUBSIDY TO CANADIAN LUMBER PRODUCERS CANADIAN TRADE MINISTER MICHAEL WILSON SAID IN OTTAWA THAT THE PANEL'S DECISION WAS VERY POSITIVE FOR CANADA IT'S THE BEST RESULT WE COULD HAVE HAD MR WILSON ARGUED CANADIAN OFFICIALS CONSIDERED THE COMMERCE DEPARTMENT RULING A PROTECTIONIST MEASURE AND THEY FOUGHT HARD AGAINST IT A COMMERCE DEPARTMENT SPOKESMAN IN WASHINGTON SAID THE AGENCY OBVIOUSLY IS DISAPPOINTED BY THE PANEL'S DECISION BUT NEEDED MORE TIME TO STUDY IT BEFORE COMMENTING FURTHER THE COMMERCE DEPARTMENT HAS 90 DAYS TO RESPOND TO THE PANEL'S RULING THE DUTY ON CANADIAN LUMBER SHIPMENTS WILL REMAIN IN PLACE UNTIL THE MATTER IS COMPLETELY RESOLVED MARK SPAULDING AN ATTORNEY WITH THE NATURAL RESOURCES DEFENSE COUNCIL AN ENVIRONMENTAL GROUP CALLED THE BINATIONAL PANEL'S LUMBER DECISION DISAPPOINTING BUT HE PREDICTED THE COMMERCE DEPARTMENT WILL BE ABLE TO CLEAR UP THE PANEL'S CONCERNS AND THUS WILL BE ABLE TO CONTINUE IMPOSING THE ANTISUBSIDY PENALTIES INDEFINITELY ENVIRONMENTALISTS GENERALLY SUPPORT THE COMMERCE DEPARTMENT'S POSITION BECAUSE PENALTY DUTIES ON CANADIAN LUMBER COULD PUT A DAMPER ON HEAVY LOGGING IN THAT COUNTRY CANADIAN LUMBER EXPORTS TO THE US TOTALED ABOUT FOUR BILLION CANADIAN DOLLARS 314 BILLION IN 1992 CANADA'S SHARE OF THE US LUMBER MARKET WAS ABOUT 29 IN 1992 BRITISH COLUMBIA ACCOUNTED FOR ABOUT 61 OF CANADA'S PRODUCTION IN 1991 MEANWHILE A SEPARATE BINATIONAL PANEL IS REVIEWING A RULING BY THE US INTERNATIONAL TRADE COMMISSION LAST YEAR THAT IMPORTS OF CANADIAN SOFTWOOD LUMBER ARE INJURING THE US LUMBER INDUSTRY THE DECISION BY THE US PANEL CLEARED THE WAY FOR THE LEVYING OF DUTIES THE SECOND BINATIONAL PANEL'S RULING IS DUE JULY 27 THE PANELS WERE SET UP UNDER THE DISPUTE SETTLEMENT PROVISION OF THE USCANADA TRADE AGREEMENT THEY ARE MODELS FOR WHAT TRADE NEGOTIATORS ARE CONSIDERING FOR THE NORTH AMERICAN TRADE PACT BUT VARIOUS LAWMAKERS AS WELL AS SOME ENVIRONMENTAL LABOR AND OTHER GROUPS HAVE BEEN CONCERNED THAT NORTH AMERICAN PANELS COULD SUPERCEDE US LAWS DEMOCRATIC SEN MAX BAUCUS OF MONTANA SAID THE PANEL IS OFF ON THE WRONG TRACK WITH YESTERDAY'S DECISION HE ARGUED THAT THE BINATIONAL PANEL FAILED TO MEET A REQUIREMENT THAT SUCH PANELS APPLY THE SAME STANDARD AS US COURTS WOULD IF THEY CAN'T WE'LL HAVE TO TAKE A HARD LOOK AT WHETHER THIS PROCESS IS IN THE BEST INTEREST OF THE UNITED STATES THE SENATOR SAID 9305070072 930507 THURSDAY'S MARKETS STOCKS BONDS FINISH MIXED DOLLAR DECLINES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK AND BOND PRICES WERE MIXED IN NERVOUS TRADING AHEAD OF TODAY'S RELEASE OF EMPLOYMENT DATA FOR APRIL THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE LOST 720 POINTS TO 344190 AND STANDARD & POOR'S 500STOCK INDEX FELL 126 TO 44326 BUT ADVANCING AND DECLINING ISSUES WERE ABOUT EVEN ON THE NEW YORK STOCK EXCHANGE THE NASDAQ COMPOSITE INDEX SANK 322 TO 68004 ALAN R ACKERMAN MARKET STRATEGIST AT REICH & CO SAID MANY INVESTORS MOVED CAUTIOUSLY IN YESTERDAY'S SESSION THE MARKET SLOWED DOWN TO A WALTZ AHEAD OF THE EMPLOYMENT NUMBERS MR ACKERMAN SAID HE SAID INVESTORS ALSO ARE INCREASINGLY WORRIED ABOUT THE EFFECTIVENESS OF THE CLINTON PRESIDENCY CONCERN IS GROWING THAT CLINTON IS UNABLE TO COPE WITH HIS VERY BROAD AND INCREASINGLY EXPENSIVE AGENDA MR ACKERMAN SAID THE SENSE IS THAT HIS TAX PROGRAM IS CHILLING INVESTOR AND CONSUMER CONFIDENCE WEDNESDAY'S STAR PERFORMERS HEALTHCARE AND DRUG STOCKS WERE KNOCKED LOWER YESTERDAY AS INVESTORS SWOOPED IN FOR A LITTLE PROFITTAKING IT'S TYPICAL OF THE MARKET RECENTLY WHERE THERE'S LITTLE OR NO FOLLOWTHROUGH MR ACKERMAN SAID INDIVIDUAL STOCKS OR STOCK GROUPS MOVE INTO THE LIMELIGHT FOR A MILLISECOND APPAREL RETAILER STOCKS WERE AMONG THE TOP PERFORMERS AS RETAIL SALES FOR APRIL SHOWED SOME IMPROVEMENT GAP JUMPED 2 1/4 TO 32 1/2 LIMITED GAINED 1/4 TO 22 1/4 AND TJX COS ROSE 1 TO 31 7/8 OVERSEAS STOCK PRICES WERE MOSTLY LOWER TOKYO STOCKS SANK 14 GERMAN SHARES WERE FLAT AND FRENCH AND BRITISH STOCK PRICES FELL AFTER THE BUNDESBANK DECIDED NOT TO CUT INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 015 TO 10602 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2544 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE 3 ISSUES FELL AND 940 ROSE THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15740 MARKS AND 11004 YEN COMPARED WITH 15805 MARKS AND 11045 YEN WEDNESDAY 9305070071 930507 FIAT DIRECTORS PLAN DISCUSSION OF CODE OF BUSINESS ETHICS SPECIAL TO THE WALL STREET JOURNAL MILAN ITALIAN AUTO MAKER FIAT SPA SAID ITS BOARD PLANS TO DISCUSS A CODE OF BUSINESS ETHICS AT A MEETING CALLED FOR TUESDAY THE NEWS CLEARS UP SOME OF THE MYSTERY SURROUNDING THE MEETING WHICH WAS ANNOUNCED WEDNESDAY FIAT OFFICIALS HAD DECLINED TO COMMENT ON WHAT TOPICS WERE ON THE AGENDA SPARKING RUMORS THAT ITALY'S LARGEST PRIVATESECTOR INDUSTRIAL GROUP MIGHT ANNOUNCE A STRATEGIC ALLIANCE WITH ANOTHER COMPANY FIAT'S BOARD HAS ANOTHER MEETING PLANNED FOR MAY 31 WHEN IT WILL APPROVE FINAL ACCOUNTS FOR 1992 A FIAT SPOKESMAN SAID THE BOARD WILL REVIEW A DOCUMENT DRAWN UP BY LEGAL EXPERTS ON ETHICAL BUSINESS BEHAVIOR THE REPORT WAS COMMISSIONED BY FIAT CHAIRMAN GIOVANNI AGNELLI AND MANAGING DIRECTOR CESARE ROMITI AFTER FIAT FOUND ITSELF IN THE THICK OF AN ITALYWIDE BRIBERY AND CORRUPTION SCANDAL A SPATE OF FIAT TOP MANAGERS HAVE BEEN ARRESTED IN CONNECTION WITH THE SCANDAL WHICH MOSTLY INVOLVES PAYING BRIBES TO POLITICAL PARTIES TO WIN CONTRACTS 9305070070 930507 THAI ECONOMY BASKS IN GLOW OF RISING SUN JAPANESE COMPANIES LEAVE WOES AT HOME PURSUE JOINT VENTURES ABROAD BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THAILAND IN JAPAN SANYO ELECTRIC CO IS CUTTING ITS WORK FORCE AND SLASHING COSTS THE COMPANY REPORTED A 107 MILLION PRETAX LOSS FOR THE YEAR ENDED OCTOBER 1992 AND MANAGERS HOPE SALES WON'T FALL BY MORE THAN 10 THIS YEAR IN THAILAND IT'S A DIFFERENT STORY SANYO UNIVERSAL ELECTRONIC CO A JOINT VENTURE OPERATED BY SANYO AND A GROUP OF THAI INVESTORS ANNOUNCED PLANS TO BUILD A 60 MILLION REFRIGERATOR FACTORY THAT WILL PRODUCE ONE MILLION UNITS A YEAR BY 1995 AND EMPLOY 2000 WORKERS SANYO ISN'T ALONE SO FAR THIS YEAR NEARLY 20 JAPANESE COMPANIES HAVE UNVEILED PLANS TO EXPAND THEIR OPERATIONS IN THAILAND AND TWO DOZEN COMPANIES HAVE PLEDGED TO OPEN NEW OPERATIONS HERE ALTHOUGH THE FLOW OF YEN FROM TOKYO HAS PLUNGED 70 FROM ITS PEAK IN 1990 SOME INVESTMENT IS STILL COMING IN PERHAPS MORE IMPORTANTLY MANY OF THE NEARLY 2000 JAPANESE COMPANIES ALREADY OPERATING IN THAILAND ARE EXPANDING USING PROFITS AND FUNDS RAISED LOCALLY RATHER THAN SEEKING NEW INVESTMENT FROM THEIR PARENT COMPANIES THE NATURE OF JAPANESE INVESTMENT IN THAILAND HAS CHANGED GRADUALLY THE COMPANIES HERE ARE MORE INDEPENDENT FROM THE MOTHER COMPANY IN JAPAN SAYS FUMIO MATSUEDA GENERAL MANAGER OF MITSUBISHI CO THAILAND ONE OF 101 JOINT VENTURES THAT JAPAN'S MITSUBISHI CORP HAS IN THAILAND COMPANIES FROM OTHER NATIONS ALSO ARE EXPANDING THEIR THAI OPERATIONS BUT JAPANESE FIRMS LED THE INVESTMENT BOOM AND THEIR VENTURES IN THAILAND FAR OUTNUMBER THOSE FROM ANY OTHER COUNTRY EXACT FIGURES AREN'T AVAILABLE BUT BANKERS ESTIMATE THAT FUNDS RAISED BY JAPANESE JOINT VENTURES IN THAILAND THIS YEAR WILL EASILY TOP JAPANESE DIRECT INVESTMENT WHICH IS EXPECTED TO REMAIN NEAR LAST YEAR'S LEVEL OF 343 MILLION AT ITS HEIGHT IN 1990 JAPANESE INVESTMENT TOTALED 112 BILLION BECAUSE OF LEGAL RESTRICTIONS MOST FOREIGN INVESTMENT IS IN JOINT VENTURES COMBINING MAJORITY THAI OWNERSHIP WITH FOREIGN EXPERTISE AND MANAGEMENT NEW INVESTMENT CONTINUES TO FLOW DESPITE A 1991 COUP AND THE BLOODY ANTIGOVERNMENT DEMONSTRATIONS OF MAY 1992 WHICH DISCOURAGED SOME FOREIGN INVESTORS IN FACT DIRECT INVESTMENT WAS AT SUCH HIGH LEVELS THAT EVEN WITH THE DECLINE JAPANESEOWNED FACTORIES ARE OPENING AT A RATE OF ONE OR TWO A WEEK THAILAND'S OFFICE OF THE BOARD OF INVESTMENT SAYS JAPANESE COMPANIES AGAIN LED PLEDGES FOR NEW INVESTMENT IN THE FIRST QUARTER OF THIS YEAR WITH 24 PROJECTS APPROVED TWO MORE THAN A YEAR EARLIER MANY OF THE FACTORS THAT MADE THAILAND THE DARLING OF FOREIGN INVESTORS IN THE LATE 1980S CONTINUE LABOR IS RELATIVELY CHEAP ECONOMIC GROWTH IS STRONG AND THE COUNTRY HAS 57 MILLION INCREASINGLY WELLOFF CONSUMERS ECONOMISTS ESTIMATE THAT GROSS DOMESTIC PRODUCT THE NATION'S OUTPUT OF GOODS AND SERVICES NOT INCLUDING FOREIGN INCOME WILL GROW 78 THIS YEAR AFTER LAST YEAR'S EXPANSION OF 74 MEANWHILE THE YEN'S 11 RISE AGAINST THE DOLLAR SINCE THE START OF THIS YEAR 12484 YEN TO THE DOLLAR ON DEC 31 COMPARED WITH 11045 ON MAY 5 IS CREATING A NEW GROUP OF JAPANESE COMPANIES LOOKING FOR A CHEAPER MANUFACTURING BASE MITSUTOSHI KOYAMA CHIEF EXECUTIVE OF SAKURA BANK LTD IN BANGKOK SAYS HE HAS A LIST OF MORE THAN 100 JAPANESE COMPANIES INTERESTED IN INVESTING IN THAILAND MANY FOR THE FIRST TIME THERE IS SOME RUSH RIGHT NOW HE SAYS THAILAND ALSO OFFERS NEW OPPORTUNITIES CREATED BY YEARS OF RAPID GROWTH THAT STRETCHED THE COUNTRY'S INFRASTRUCTURE ALTHOUGH TRANSPORTATION AND COMMUNICATIONS BOTTLENECKS MAY DIVERT SOME MANUFACTURING INVESTMENT THEY ACTUALLY LURE OTHER FOREIGN INVESTORS JAPANESE COMPANIES ARE INVOLVED IN THE CONSORTIUMS VYING TO BUILD A MASSTRANSIT SYSTEM IN BANGKOK THEY'RE ALSO EAGER TO PLAY A ROLE IN PLANNED TELECOMMUNICATIONS PROJECTS AND THE PROPOSED NONG NGU HOU INTERNATIONAL AIRPORT EAST OF BANGKOK TOYOTA MOTOR CORP'S THAI JOINT VENTURE TAPPED LOCAL CAPITAL SOURCES TO FINANCE PLANS FOR A 76 MILLION EXPANSION OF ITS CURRENT FACTORY AND A 232 MILLION NEW PLANT TOGETHER THE INVESTMENTS WILL DOUBLE TOYOTA'S PRODUCTION IN THAILAND TO 200000 CARS AND INCREASE ITS PAYROLL TO 6000 WORKERS TOYOTA'S EXPANSION PLANS IN THAILAND ARE REVERBERATING BEYOND THE COMPANY'S OWN STRATEGY TOYOTA'S SUPPLIERS MANY OF THEM JAPANESE JOINT VENTURES ALREADY OPERATING IN THAILAND WILL EXPAND WITH THE AUTO MAKER OTHER COMPANIES THAT HAVE BEEN SUPPLYING TOYOTA FROM JAPAN ARE EXPECTED TO SET UP IN THAILAND AS WELL EXPANSION PLANS AT NIKKEI THAI ALUMINUM CO MARK A BIG CHANGE FROM ONLY A FEW YEARS AGO WHEN MANAGERS HAD TO SEEK MONEY FROM JAPAN TO PAY FOR A NEW REFRIGERATEDTRUCK PLANT THE COMPANY RAISED OUTPUT OF ALUMINUM BARS BY 40 LAST YEAR AND WILL INCREASE CAPACITY A FURTHER 22 THIS YEAR PAYING FOR THE EXPANSION WITHOUT ANY HELP FROM ITS TOKYOBASED PARENT NIPPON LIGHT METAL CO NIKKEI THAI PRESIDENT RYOTABURO OKURA SAYS THE COMPANY PAID FOR THE 24 MILLION EXPANSION OUT OF THE PROFIT FROM ITS THAI OPERATIONS THIS IS A GOOD MARKET FOR US THERE ARE PROBLEMS IN JAPAN NOW BUT WE HAVE SUCCESS IN THAILAND HE SAYS 9305070069 930507 BUSINESS BRIEF AMERICAN AIR GROUNDS SIX MCDONNELL JETS AS IT CUTS CAPACITY FORT WORTH TEXAS AMERICAN AIRLINES SAID IT WILL REMOVE FROM SERVICE SIX OF ITS 10 MCDONNELL DOUGLAS DC1030 LONGRANGE WIDEBODY JETS THIS FALL CONTINUING ITS EFFORT TO CUT CAPACITY THESE GROUNDINGS ARE IN ADDITION TO THE AMR CORP UNIT'S PLANS TO TAKE 25 OLDER MODEL DC1010 JETS OUT OF ITS FLEET 16 THIS YEAR AND NINE BY NEXT MAY THE DC1030 JETS WHICH SEAT 227 CURRENTLY FLY FROM AMERICAN'S DALLAS/FORT WORTH HUB TO FRANKFURT GERMANY AND PARIS AND ALSO FROM NEW YORK'S KENNEDY AIRPORT TO PARIS AFTER OCTOBER THEY WILL BE REPLACED ON THOSE ROUTES WITH 215SEAT BOEING B767300 EXTENDEDRANGE AIRCRAFT GROUNDING THE JETS MEANS AMERICAN WILL OPERATE ONLY TWO FLEET TYPES TO EUROPE THE 767ERS AND MCDONNELL DOUGLAS MD11S WHICH WILL GENERATE SIGNIFICANT SAVINGS IN OPERATING COSTS THE COMPANY SAID AMERICAN SAID IT'S LOOKING HARD FOR BUYERS FOR THOSE JETS AND OTHERS AS IT SHRINKS ITS FLEET THE FLEET REDUCTIONS ARE PART OF AMERICAN'S TRANSITION PLAN THE COMPANY EFFORT TO REGAIN PROFITABILITY BY BEEFING UP OPERATIONS AT ITS STRONGEST HUBS REDUCING UNPROFITABLE OPERATIONS AND ROUTES AND STRENGTHENING THE COMPANY'S NONAIRLINE BUSINESSES 9305070068 930507 BUSINESS BRIEF NUWEST INDUSTRIES INC BANKRUPTCYLAW PROTECTION MAY BE NEEDED AFTER LOSS PLAGUED BY DECLINING FERTILIZER PRICES NUWEST INDUSTRIES INC REPORTED A FISCAL THIRDQUARTER LOSS AND SAID IT MAY HAVE TO FILE FOR BANKRUPTCYLAW PROTECTION THE ENGLEWOOD COLO FERTILIZER MANUFACTURER SAID IT POSTED A LOSS FOR THE QUARTER ENDED MARCH 31 OF 1 MILLION OR 12 CENTS A SHARE COMPARED WITH A YEARAGO LOSS OF 600000 OR NINE CENTS A SHARE SALES FELL 7 TO 211 MILLION FROM 228 MILLION THE COMPANY SAID IT MIGHT HAVE TO SKIP A DEBT PAYMENT DUE IN JULY AND IF IT CAN'T OBTAIN CASH ARRANGE A REFINANCING OR OBTAIN CONCESSIONS FROM LENDERS IT MAY HAVE TO SEEK BANKRUPTCYLAW PROTECTION A COMPANY SPOKESMAN WOULDN'T SAY HOW MUCH IS DUE IN JULY A PROPOSAL FROM ONE POTENTIAL INVESTOR WHICH NUWEST WOULDN'T IDENTIFY WOULD INCLUDE OBTAINING 40 MILLION OF SECURED DEBT TO REFINANCE NUWEST'S EXISTING LONGTERM DEBT AND MAKING A TENDER OFFER FOR THE COMPANY'S CLASS A AND B STOCK AT A SIGNIFICANT DISCOUNT THE COMPANY SAID IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY NUWEST CLOSED AT 375 CENTS A SHARE DOWN 125 CENTS 9305070067 930507 BUSINESS BRIEF SYNERGEN INC FIRM POSTS 1STPERIOD LOSS WIDER THAN ANTICIPATED SYNERGEN INC HOBBLED BY RISING COSTS AND SLUMPING REVENUE POSTED A WIDERTHANANTICIPATED FIRSTQUARTER NET LOSS THE BOULDER COLO BIOTECHNOLOGY COMPANY SAID IT RECORDED A LOSS OF 206 MILLION OR 82 CENTS A SHARE IN THE PERIOD COMPARED WITH A YEAREARLIER LOSS OF 520700 OR TWO CENTS A SHARE THE MEAN ESTIMATE FROM ANALYSTS FOR THE QUARTER HAD BEEN A LOSS OF 53 CENTS A SHARE REVENUE DROPPED 10 TO 94 MILLION FROM 105 MILLION A YEAR EARLIER SYNERGEN SAID ITS RESEARCH AND DEVELOPMENT COSTS NEARLY TRIPLED DURING THE QUARTER TO 245 MILLION FROM 86 MILLION A YEAR EARLIER WHILE ITS GENERAL AND ADMINISTRATIVE EXPENSES MORE THAN DOUBLED TO 5 MILLION FROM 24 MILLION THE HIGHER EXPENSES REFLECT SYNERGEN'S SIGNIFICANT EXPANSION OF ITS CLINICAL RESEARCH PROGRAM AND MANUFACTURING OPERATIONS DURING 1992 SAID KENNETH COLLINS CHIEF FINANCIAL OFFICER IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY SYNERGEN CLOSED AT 11125 DOWN 375 CENTS 9305070066 930507 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH FIRM AND UNITEL SUE STENTOR CHARGING IT VIOLATED PATENTS AMERICAN TELEPHONE & TELEGRAPH CO IN NEW YORK AND ITS CANADIAN AFFILIATE UNITEL COMMUNICATIONS INC SUED STENTOR THE CANADIAN NETWORK CONSORTIUM CHARGING STENTOR WITH INFRINGING AT&T'S NETWORK PATENTS THE SUIT FILED IN THE FEDERAL COURT OF CANADA IN TORONTO FOLLOWS A SIMILAR ACTION BY AT&T IN THE US AGAINST MCI COMMUNICATIONS CORP STENTOR IS USING MCI SOFTWARE IN ITS NETWORK SOFTWARE WHICH AT&T CLAIMS VIOLATES ITS PATENTS AT&T WARNED STENTOR LAST NOVEMBER THAT IT WOULD VIOLATE AT&T PATENTS IF IT USED MCI SOFTWARE AT&T ACQUIRED A 20 STAKE IN UNITEL IN JANUARY AND LICENSED THE FLEDGLING CARRIER TO USE ITS NETWORK SOFTWARE STENTOR IS OWNED BY CANADA'S MAJOR PHONE COMPANIES INCLUDING BELL CANADA MCI IN A NEWS RELEASE SAID THE MCI INTELLIGENT NETWORK IN NO WAY INFRINGES AT&T'S INTELLECTUAL PROPERTY A STENTOR SPOKESWOMAN SAID THE COMPANY HADN'T HAD A CHANCE TO REVIEW THE SUIT 9305070065 930507 BUSINESS BRIEF US SHOE CORP SALES RISE IN 4WEEK PERIOD 4THQUARTER LOSS IS EXPECTED US SHOE CORP SALES FOR STORES OPEN A YEAR OR MORE ROSE 27 FOR THE FOUR WEEKS ENDED MAY 1 BUT IT REAFFIRMED PREDICTIONS THAT LOSSES AT ITS APPAREL STORES WILL RESULT IN A COMPANYWIDE LOSS FOR THE FIRST QUARTER TOTAL SALES FOR THE FOUR WEEKS ROSE 21 TO 175 MILLION FOR THE FIRST QUARTER ENDED MAY 1 COMPARABLE STORE SALES DECLINED 16 WHILE TOTAL RETAIL SALES FELL 18 TO 515 MILLION US SHOE HAD 2450 STORES OPEN IN APRIL 1993 COMPARED WITH 2498 A YEAR EARLIER DURING LAST YEAR'S FIRST QUARTER ENDED MAY 2 IT EARNED 28 MILLION OR SIX CENTS A SHARE ON TOTAL SALES OF 648 MILLION 9305070064 930507 BUSINESS BRIEF KLM ROYAL DUTCH AIRLINES CARRIER SAYS TOTAL TRAFFIC INCREASED 16 LAST MONTH KLM ROYAL DUTCH AIRLINES SAID ITS TOTAL AIRLINE TRAFFIC IN APRIL ROSE 16 FROM A YEAR EARLIER AND THAT IT USED MORE OF ITS AVAILABLE CAPACITY THE DUTCH FLAG CARRIER SAID TOTAL AIRLINE TRAFFIC ROSE TO 503 MILLION TON KILOMETERS IN APRIL FROM 4343 MILLION TON KILOMETERS 12 MONTHS EARLIER KLM LIKE OTHER EUROPEAN AIRLINES MEASURES ITS PASSENGER AND FREIGHT BUSINESS VOLUMES IN TERMS OF WEIGHT TRANSPORTED OVER DISTANCE OF THE TRAFFIC TOTALS FOR APRIL WHICH IS THE FIRST MONTH OF THE COMPANY'S FISCAL YEAR PASSENGER HAULAGE WAS UP 16 TO 2755 MILLION TON KILOMETERS KLM'S CAPACITY UTILIZATION OR LOAD FACTOR ROSE TO 711 FROM 686 DESPITE THE IMPROVEMENTS THE COMPANY CONTINUES TO FLY IN OVERCROWDED AND SLACK AIRLINE MARKETS ALTHOUGH IT HASN'T YET DISCLOSED DATA FOR THE FULL FISCAL YEAR KLM WAS DEEP IN THE RED IN THE FIRST NINE MONTHS OF THE YEAR WITH A NET LOSS OF 2293 MILLION GUILDERS 1293 MILLION 9305070063 930507 TECHNOLOGY BRIEF GENTA INC AGREEMENT SIGNED FOR TRIALS ON NEW PRODUCTS IN FRANCE GENTA INC SAID IT SIGNED AN AGREEMENT WITH A FRENCH RESEARCH GROUP TO CONDUCT CLINICAL TRIALS ON UP TO NINE NEW PRODUCTS IN FRANCE THE TRIALS WILL BE FINANCED PARTLY BY GRANTS AND SUBSIDIES TOTALING MORE THAN 10 MILLION FROM THE FRENCH GOVERNMENT SAN DIEGOBASED GENTA SAID INITIATION OF ITS COLLABORATION WITH THE RESEARCH GROUP CENTRE DE PHARMACOLOGIE CLINIQUE ET D'EVALUATION THERAPEUTIQUES IS CONTINGENT ON THE GROUP'S RECEIPT OF THE GOVERNMENT FUNDING THE FUNDING IS EXPECTED TO COVER A MAJORITY OF THE COST OF CONDUCTING THE CLINICAL TRIALS AND PART OF THE COST OF GENTA'S INITIAL OPERATIONS GENTA SAID THE NEW PRODUCTS INCLUDE DERMATOLOGYBASED PHARMACEUTICALS THAT ARE BEING DEVELOPED EITHER BY GENTA ALONE OR BY GENTA AND JAGOTEC AG GENTA INTENDS TO USE THE RESULTS IN FRANCE TO SUPPORT PRODUCT REGISTRATIONS IN WESTERN EUROPE THE US AND OTHER PARTS OF THE WORLD 9305070061 930507 BUSINESS BRIEF PIER 1 IMPORTS INC FIRSTPERIOD NET EXPECTED TO DECLINE AS MUCH AS 24 PIER 1 IMPORTS INC BLAMING POOR WEATHER FOR SLUGGISH SALES OF ITS HOME FURNISHINGS AND OUTDOOR FURNITURE PREDICTED FISCAL FIRSTQUARTER NET INCOME WILL FALL AS MUCH AS 24 TO 53 MILLION TO 6 MILLION OR 14 TO 16 CENTS A SHARE A YEAR EARLIER THE FORT WORTH TEXAS COMPANY POSTED NET INCOME OF 7 MILLION OR 19 CENTS A SHARE THOSE FIGURES DON'T INCLUDE EARNINGS FROM SUNBELT NURSERY GROUP A GARDENING SUPPLIER THAT PIER 1 OWNED PREVIOUSLY INCLUDING SUNBELT NURSERY RESULTS THE RETAILER HAD NET INCOME OF 81 MILLION OR 22 CENTS A SHARE ON SALES OF 1521 MILLION IN THE YEARAGO QUARTER THE CURRENT FIRST QUARTER ENDS MAY 29 CLARK A JOHNSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER PREDICTED THAT WARMER WEATHER WILL BOOST SALES WE'LL GET SOME OF OUR BUSINESS BACK HE SAID PEOPLE WILL START BUYING WICKER FURNITURE PATIO CHAIRS AND ITEMS FOR OUTDOOR LIVING MR JOHNSON PREDICTED THE COMPANY WILL MEET INVESTOR PROFIT EXPECTATIONS OF 80 TO 85 CENTS A SHARE BY THE END OF THE FISCAL YEAR IN FEBRUARY A YEAR EARLIER COMPARABLE EARNINGS NOT INCLUDING SUNBELT WERE 77 CENTS A SHARE HE SAID INCLUDING SUNBELT PIER 1 EARNINGS WERE 62 CENTS A SHARE THE COMPANY SAID 9305070060 930507 BUSINESS BRIEF NATIONAL GAS & OIL CORP COMPANY TO BUILD PIPELINE SUPPLY GAS TO POWER PLANT NATIONAL GAS & OIL CORP SAID IT AGREED TO PROVIDE TRANSPORT SERVICES FOR AT LEAST SIX BILLION CUBIC FEET A YEAR OF NATURAL GAS TO A CONESVILLE OHIO ELECTRIC GENERATING PLANT OWNED BY AMERICAN ELECTRIC POWER CO NATIONAL GAS & OIL OF NEWARK OHIO SAID IT WILL BUILD A TWOMILE GAS PIPELINE TO CONNECT THE PLANT OWNED BY AEP'S COLUMBUS SOUTHERN POWER CO UNIT TO SEVERAL INTERSTATE PIPELINES AND SUPPLY THE PLANT WITH GAS BEGINNING JAN 1 1995 THE NATURAL GAS DISTRIBUTOR DECLINED TO ESTIMATE CONSTRUCTION COSTS OR THE REVENUE IT WOULD RECEIVE FOR TRANSPORTING THE GAS THE ARRANGEMENT WOULD INCREASE NATIONAL GAS & OIL'S GAS THROUGHPUT CURRENTLY 10 BILLION CUBIC FEET PER YEAR BY AT LEAST 60 GAS TRANSPORTATION ARRANGEMENTS LIKE THAT WITH AEP WHICH ACCOUNT FOR 70 OF NATIONAL GAS & OIL'S THROUGHPUT PRODUCE LESS REVENUE THAN THE GAS SUPPLY ARRANGEMENTS THAT ACCOUNT FOR THE REMAINING 30 OF THROUGHPUT LAST YEAR NATIONAL GAS & OIL EARNED 2 MILLION OR 48 CENTS A SHARE ON REVENUE OF 383 MILLION 9305070059 930507 BUSINESS BRIEF COATS VIYELLA PLC BRITISH FIRM SAYS RESULTS ARE MEETING EXPECTATIONS COATS VIYELLA PLC SAID ITS RESULTS HAVE BEEN FULLY IN LINE WITH EXPECTATIONS SO FAR THIS YEAR AND IT EXPECTS AN ACCELERATION DURING THE SECOND HALF CHAIRMAN DAVID ALLIANCE TOLD THE BRITISH TEXTILE GROUP'S ANNUAL MEETING I REMAIN COMFORTABLE THAT 1993 WILL BE A YEAR OF FINANCIAL PROGRESS DUE PARTLY TO COST REDUCTIONS AND PARTLY TO THE CONTINUING BENEFITS OF THE INTEGRATION OF TOOTAL A TEXTILE COMPANY COATS BOUGHT IN 1991 MR ALLIANCE SAID THE GROUP HASN'T SEEN ANY SIGNIFICANT IMPROVEMENT IN THE LEVEL OF ACTIVITY SO FAR THIS YEAR ALTHOUGH THERE IS NO DOUBT THAT THE MOOD OF CUSTOMERS AND CONSUMERS HAS IMPROVED HE SAID THIS TOGETHER WITH THE DEVALUATION OF STERLING AND LOWER INTEREST RATES SHOULD BENEFIT THE SECOND HALF OF THIS YEAR MR ALLIANCE DIDN'T MAKE A SPECIFIC FORECAST FOR 1993 RESULTS A YEAR EARLIER THE GROUP HAD PRETAX PROFIT OF 1091 MILLION 1709 MILLION ON SALES OF 211 BILLION 9305070058 930507 BUSINESS BRIEF CHIRON CORP FIRSTQUARTER PROFIT POSTED AGAINST A YEAREARLIER LOSS CHIRON CORP POSTED FIRSTQUARTER NET INCOME OF 25 MILLION COMPARED WITH A 41 MILLION NET LOSS LAST YEAR THAT INCLUDED THE CHARGE FOR THE ACQUISITION OF CERTAIN TECHNOLOGIES REVENUE ROSE 22 TO 690 MILLION FROM 567 MILLION CITING INCREASED SALES IN ITS ONCOLOGY AND OPHTHALMICS BUSINESSES CHIRON REPORTED FIRSTQUARTER OPERATING PROFIT OF 18 MILLION COMPARED WITH AN OPERATING LOSS OF 700000 A YEAR EARLIER BEFORE A 422 MILLION WRITEOFF THE COMPANY BASED IN EMERYVILLE CALIF CITED INCREASED COLLABORATIVERESEARCH REVENUE AND INCREASED REVENUE FROM ITS JOINT BLOODSCREENING AND DIAGNOSTICS BUSINESS WITH ORTHO DIAGNOSTIC SYSTEMS INC THE BIOTECHNOLOGY COMPANY'S YEARAGO RESULTS INCLUDED A CHARGE OF 405 MILLION FOR ITS ACQUISITION TOGETHER WITH SWITZERLAND'S CIBAGEIGY LTD OF THE VACCINE BUSINESS OF SCLAVO SPA OF ITALY THE RESULTS ALSO INCLUDED A 18 MILLION CHARGE FOR THE PURCHASE OF A MINORITY INTEREST IN A SUBSIDIARY OF INTRAOPTICS INC AN OPHTHALMIC COMPANY 9305070057 930507 BUSINESS BRIEF TURNER CORP CONSTRUCTION FIRM EXPECTS GAIN IN FIRSTQUARTER NET ALFRED MCNEILL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TURNER CORP SAID THE NEW YORKBASED CONSTRUCTION COMPANY EXPECTS A SIGNIFICANT GAIN IN FIRSTQUARTER NET INCOME OVER THE YEARAGO PERIOD DESPITE A CONTINUING DOWNTURN IN THE COMMERCIAL CONSTRUCTION INDUSTRY IN THE FIRST QUARTER OF 1992 TURNER EARNED 414000 OR THREE CENTS A SHARE INCLUDING AN ACCOUNTING CHANGE BUT LOGGED A 1 MILLION OPERATING LOSS THIS YEAR'S FIRSTQUARTER PROFIT WILL NOT INCLUDE ANY SPECIAL GAINS MR MCNEILL SAID HE SAID HE EXPECTED 1993 EARNINGS TO EXCEED LAST YEAR'S 4 MILLION OR 50 CENTS A SHARE MR MCNEILL SAID THE COMPANY BOOKED JUST OVER 700 MILLION IN NEW SALES IN THE FIRST QUARTER COMPARED WITH 660 MILLION IN THE YEARAGO PERIOD THE COMPANY'S BACKLOG OF WORK WAS ABOUT 512 BILLION HE SAID UP FROM 509 BILLION AT YEAR END HE SAID TURNER WAS BUCKING THE INDUSTRYWIDE DECLINE IN COMMERCIAL CONSTRUCTION BY INCREASING ITS MARKET SHARE PARTICULARLY IN THE SOUTHEAST AND SOUTHWEST 9305070056 930507 MARKETING BRIEF NYNEX CORP COMPANY NEWSPAPER TO TEST PHONE INFORMATION SERVICE NYNEX CORP SAID IT WILL WORK WITH THE LONG ISLAND DAILY NEWSDAY TO TEST A PERSONALIZED TELEPHONE INFORMATION SERVICE TARGETED TO LONG ISLAND RESIDENTS CUSTOMERS WILL HAVE ACCESS TO NEWS ABOUT THEIR COMMUNITY HIGH SCHOOL AND COLLEGE SPORTS SCORES AND LOCAL WEATHER AS WELL AS TRAVEL INFORMATION AND RESTAURANT AND MOVIE LISTINGS OVER THE TELEPHONE OTHER TYPES OF INFORMATION SUCH AS STATE AND NATIONAL NEWS ALSO WILL BE AVAILABLE NYNEX OF WHITE PLAINS NY AND NEWSDAY A UNIT OF LOS ANGELESBASED TIMES MIRROR CORP SAID THE PACT IS THE FIRST TIME A TELECOMMUNICATIONS COMPANY AND A NEWSPAPER HAVE JOINED TO PROVIDE LOCAL AND REGIONAL INFORMATION TO CONSUMERS A TRIAL SERVICE IS EXPECTED TO BEGIN THIS FALL WITH ABOUT 1500 CUSTOMERS ON LONG ISLAND TRIAL CUSTOMERS WILL INCLUDE NEWSDAY READERS WHO SUBSCRIBE TO NEW YORK TELEPHONE'S VOICE MAIL SERVICE OTHER CUSTOMERS WILL BE INVITED TO TRY THE SERVICE TO HELP THE TWO COMPANIES ASSESS CUSTOMER WILLINGNESS TO PAY FOR PERSONALIZED INFORMATION TRIAL PARTICIPANTS WILL BE CHARGED A MONTHLY FEE AS YET UNDETERMINED FOR THE SERVICE 9305070055 930507 BUSINESS BRIEF PET INC US JUDGE DECLINES TO BLOCK PLAN TO SELL WHITMAN ASSETS A FEDERAL JUDGE DECLINED TO BLOCK PET INC FROM PROCEEDING WITH A PLAN TO SELL THE ASSETS OF ITS WHITMAN CHOCOLATES DIVISION TO RUSSELL STOVER CANDIES INC PET'S PLAN CALLS FOR CLOSING ITS 600EMPLOYEE WHITMAN PLANT IN PHILADELPHIA WITH STOVER ASSUMING THE RIGHT TO THE WHITMAN TRADEMARK PENNSYLVANIA'S ATTORNEY GENERAL FILED SUIT LAST MONTH ALLEGING THE SALE WOULD VIOLATE FEDERAL ANTITRUST LAW BY GIVING STOVER AN INORDINATE SHARE OF THE GIFTBOXED CHOCOLATE MARKET THE SUIT SOUGHT A PRELIMINARY INJUNCTION THAT WOULD BAR THE SALE FROM GOING FORWARD UNTIL A TRIAL BUT AFTER A TWODAY HEARING THE JUDGE IN PHILADELPHIA DENIED THE STATE OFFICIAL'S REQUEST FOR AN INJUNCTION PET SAID IT NOW IS CONTINUING ITS PLANS TO CLOSE THE PLANT IN PHILADELPHIA AND TO DISPOSE OF THE REMAINING ASSETS OF THE BUSINESS PET SAID ITS DECISION TO SELL THE ASSETS AND TERMINATE THE WORKERS CAME AFTER EIGHT MONTHS OF ACTIVELY SEEKING A BUYER FOR THE BUSINESS IT SAID NO ONE HAD OFFERED TO BUY THE BUSINESS INTACT 9305070054 930507 WARCHEST WORRIES AS PRESIDENT MOVES TO ALTER FUND RAISING MANY IN CONGRESS FRET DEBATE ON CAMPAIGN FINANCE SPARKED BY PUBLIC'S IRE THREATENS CAPITAL WAYS REEXAMINING THE CLASS OF '74 BY JOHN HARWOOD AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AS A SECONDGENERATION POLITICIAN GEORGE MILLER LEARNED EARLY NOT TO EXPECT BOUQUETS FROM CONSTITUENTS THEY'RE NEVER GOING TO LOVE YOU HIS FATHER A CALIFORNIA STATE SENATOR ONCE TOLD HIM YOU HOPE THEY'LL RESPECT YOU THAT WARNING HARDLY PREPARED REP MILLER A 47YEAROLD CALIFORNIA DEMOCRAT FOR WHAT HE FACES TODAY IN THE MOST REVILED INSTITUTION IN US GOVERNMENT THE CONGRESS IN THE AGE OF ROSS PEROT AND RUSH LIMBAUGH LAWMAKERS RECEIVE LESS RESPECT FROM THE PUBLIC THAN CONTEMPT BARELY RECOVERED FROM ITS ELECTIONYEAR EMBARRASSMENTS OVER PAY RAISES AND BOUNCED CHECKS CONGRESS IS NOW ABOUT TO FACE THE THREAT OF AN ENORMOUS CHANGE IN THE WAY IT DOES BUSINESS HEEDING CALLS FROM MR PEROT GOODGOVERNMENT GROUPS EDITORIALISTS AND HIS OWN CAMPAIGN RHETORIC PRESIDENT CLINTON IS EXPECTED TO UNVEIL TODAY A CAMPAIGNFINANCE REFORM PLAN INTENDED TO LOOSEN THE GRIP OF MONIED INTERESTS AND RESTORE VITALITY TO AN ELECTORAL SYSTEM THAT HAS ALIENATED VAST NUMBERS OF AMERICANS BUT THE PARADOX IS THAT A CRUCIAL ELEMENT OF MR CLINTON'S PROPOSED SOLUTION TO CLEAN UP THE SYSTEM AND LESSEN INCUMBENTS' HUGE ELECTORAL ADVANTAGE PARTIAL TAXPAYER FINANCING OF CAMPAIGNS MAY ONLY INVITE MORE PUBLIC RIDICULE OF CAPITOL HILL THIS IS AN AREA WHERE NO GOOD DEED GOES UNPUNISHED SAYS GEOFF GARIN A POLLSTER FOR DEMOCRATIC LAWMAKERS THERE IS A FUNDAMENTAL BELIEF THAT WHATEVER RULES THE POLITICIANS WRITE THE POLITICIANS WILL FIND A WAY TO MAKE THE RULES WORK FOR THEM THAT MAKES THE CAMPAIGNFINANCE DEBATE ESPECIALLY BITTERSWEET FOR THE SURVIVING HOUSE DEMOCRATIC LAWMAKERS FROM THE CELEBRATED WATERGATE CLASS OF 1974 SWEPT INTO OFFICE IN THE WAKE OF REPUBLICAN SCANDAL THEY QUICKLY SET ABOUT SHAKING UP THEIR OWN PARTY'S LEADERSHIP IN CONGRESS NOW JUST AS THEY HAVE RISEN TO SUBSTANTIAL POWER AND HAVE A DEMOCRATIC PRESIDENT TO WORK WITH THEY FIND THEMSELVES THE TARGET OF CHANGE AS THEY RATIONALIZE A SYSTEM THAT HAS SUSTAINED THEIR CAREERS MR PEROT APPEALING FOR AN OVERHAUL OF CORRUPT CAMPAIGNFINANCE PRACTICES HAS SINGLED OUT THE CLASS OF '74 FOR BECOMING AS ENCRUSTED IN THE SYSTEM AS THE PEOPLE THEY REPLACED FOR OBVIOUS REASONS LAWMAKERS ARE HARDLY ENTHUSIASTIC ABOUT TAKING UP LEGISLATION AIMED AT DISRUPTING THEIR SETTLED HABITS AND INCREASING THE CHANCE VOTERS WILL FIRE THEM THE REAL STORY HERE IS WE ACT AS PEOPLE DO SAYS DEMOCRATIC REP AL SWIFT OF WASHINGTON A VETERAN OF PAST DEBATES ON CAMPAIGN REFORM WE'RE NOT HARDEYED POLITICIANS WE ACT AS PEOPLE WHO FEAR THE WORST AND ARE SCARED OF THE UNKNOWN THOUGH THE HOUSE HAS LONG BEEN MORE AGGRESSIVE THAN THE SENATE ON REFORM ISSUES CAMPAIGN FINANCE IS THE MOST PERSONAL AND FRIGHTENING OF CHALLENGES FOR RANKANDFILE LAWMAKERS AND LEADERS ALIKE ALL OF WHOM MUST RUN EVERY TWO YEARS THE VERY DIVERSITY OF THE HOUSE WHERE RURAL AND MINORITY LAWMAKERS CAN FIND IT DIFFICULT TO RAISE MONEY AT HOME MAKES IT HARDER TO DEVISE A SINGLE SET OF RULES AND MEMBERS FEAR THAT BY GIVING UP EASY MONEY FROM POLITICAL ACTION COMMITTEES THEY WILL BE DRIVEN INTO THE SAME MONEY CHASE THAT CHARACTERIZES SENATE CAMPAIGNS WHICH ARE MORE EXPENSIVE FOR THE CLASS OF 1974 NEARLY TWO DECADES ON CAPITOL HILL HAVE LEFT MANY JADED ABOUT THE CLEANSING PROMISE OF NEW PROCEDURES WHILE CLINGING TO THEIR IDENTIFICATION WITH POLITICAL VIRTUE THEY WARN THAT LIMITS ON CAMPAIGN SPENDING AND PAC CONTRIBUTIONS MAY CREATE AS MANY POLITICAL PROBLEMS AS THEY SOLVE REP PHIL SHARP OF INDIANA WHO WON HIS SEAT BY DEFEATING ONE OF RICHARD NIXON'S REPUBLICAN DEFENDERS WORRIES THAT THE ISSUE WILL DISTRACT ATTENTION FROM MR CLINTON'S ECONOMIC AND HEALTHCARE PROGRAMS WITHOUT ALTERING THE FACT THAT SOME PEOPLE HAVE MORE POLITICAL CLOUT THAN OTHERS REP BILL HEFNER OF NORTH CAROLINA A ONETIME GOSPEL SINGER FEELS TRAPPED BY A NEGATIVISM THAT MAKES PUBLIC FINANCING UNPALATABLE TO HIS RURAL CONSTITUENTS REP JOHN LAFALCE OF NEW YORK WHO SUCCEEDED ANOTHER NIXON LOYALIST FRETS THAT SHAKIER INCUMBENTS CONCERNED ABOUT REELECTION MAY LOSE THE WILL TO LEAD WHAT THEY ALL AGREE ON SOMETIMES BITTERLY IS THAT ANY OVERHAUL WON'T SILENCE THE CATCALLS AND CORRUPTION CHARGES THAT ECHO FROM RADIO TALK SHOWS TO THEIR OWN TOWNHALL MEETINGS INDEED THE CAMPAIGNFINANCE ISSUE BARES THE FLIP SIDE OF MOUNTING PUBLIC ANGER AT POLITICIANS THE LAWMAKERS ARE OFTEN ANGRY AT THE PUBLIC TOO THE PUBLIC WILL NEVER GIVE YOU CREDIT MR LAFALCE COMPLAINS OUR CONSTITUENTS ARE BEING WHIPPED UP THEY'RE BEING WHIPPED UP BY MORE AND MORE SINGLEISSUE GROUPS THEY'RE BEING WHIPPED UP BY THE RUSH LIMBAUGHS OF THIS WORLD THEY'RE BEING WHIPPED UP BY ROSS PEROT THERE'S A TREMENDOUS ANTIGOVERNMENT SENTIMENT NOW IN PHILOSOPHICAL MOMENTS MEMBERS NOTE THAT CONGRESS WHICH AMERICANS VIEWED NEGATIVELY BY A 4526 MARGIN IN A RECENT WALL STREET JOURNAL/NBC NEWS POLL HAS ALWAYS BEEN AN OUTLET FOR PUBLIC FRUSTRATIONS AND ANXIETIES THOSE APPREHENSIONS HAVE DEEPENED AS RECENT ECONOMIC TROUBLES UNDERSCORED TWO DECADES OF STAGNATION IN US LIVING STANDARDS INDEED THROUGHOUT WESTERN DEMOCRACIES DISSATISFACTION WITH GOVERNMENT HAS BEEN RISING SINCE THE END OF THE COLD WAR REFOCUSED ATTENTION ON DOMESTIC ISSUES YET THE HEAVY CRITICISM OF CONGRESSIONAL INCUMBENTS IN 1992 LEFT LITTLE ROOM FOR PHILOSOPHICAL REFLECTION EIGHT MEMBERS OF THE 1974 CLASS WERE DEFEATED OR RETIRED INCLUDING MR MILLER'S WASHINGTON ROOMMATE MARTY RUSSO OF ILLINOIS AND MR LAFALCE'S CLOSE FRIEND MATTHEW MCHUGH OF NEW YORK ACROSS CAPITOL HILL THE SPECTER OF ENDLESS SCANDAL AND PARTISAN INACTION LEFT SCORES OF MEMBERS QUESTIONING THE VALUE OF THEIR SERVICE IF YOU CAN'T DEFEND IT YOU OUGHT TO CHANGE IT THAT'S OUR SYSTEM SAYS MR MILLER WE THOUGHT IT WAS A GREAT REFORM WHEN WE WOULD GO OUT AND HAVE TOWNHALL MEETINGS AND LISTEN TO WHAT THE PEOPLE SAY IF YOU WANT TO LISTEN TO WHAT THEY SAY YOU HAVE TO LISTEN TO ALL OF WHAT THEY SAY NOT JUST WHAT YOU WANT TO HEAR JUST 29 YEARS OLD WHEN HE WAS ELECTED TO CONGRESS MR MILLER EMBODIED THE YOUTHFUL SPIRIT OF THAT FRESHMAN CLASS HIS MENTOR THE LATE CALIFORNIA REP PHIL BURTON HAD BEEN HELPED BY MR MILLER'S FATHER IN STATE POLITICS AND THE SON IDENTIFIED WITH THE SAME LABOR/REFORM WING OF THE PARTY AS CHAIRMAN OF THE NATURAL RESOURCES COMMITTEE MR MILLER FINDS HIS LIBERAL PROENVIRONMENT AGENDA FACING RESISTANCE FROM POWERFUL AGRICULTURE AND UTILITY INTERESTS AND WITHOUT MORALIZING HE ADMITS CAMPAIGN FUNDS ARE THE KEYS TO THE KINGDOM FOR BOTH PARTIES IN WASHINGTON MONEY INSIDE THE BELTWAY ALTERS ALL THE DECISIONS THAT ARE MADE HE SAYS IT'S LIKE THE LITTLE SHOP OF HORRORS' YOU CAN'T FEED THIS PLANT ENOUGH HIS OWN CAMPAIGN RECEIPTS HAVE RISEN SIXFOLD SINCE HIS FIRST RACE WHICH WAS FINANCED WITH 92695 INCLUDING LOANS FROM HIS WIDOWED MOTHER HE HAS RECEIVED MORE THAN 250000 IN PAC CONTRIBUTIONS IN EACH OF THE LAST TWO ELECTIONS MOREOVER HAVING COME FROM A LABOR TRADITION HE IS ATTUNED TO USING PACS AS A POLITICAL ORGANIZING TOOL HE RESISTS THE PRESSURE TO DO AWAY WITH SUCH TECHNIQUES AS THOSE USED BY EMILY'S LIST A GROUP DEDICATED TO SUPPORTING DEMOCRATIC WOMEN CANDIDATES TO FUNNEL CONTRIBUTIONS TO HIS FRIEND BARBARA BOXER IN HER SUCCESSFUL SENATE ELECTION LAST YEAR BACK IN THE 1970S HE OBSERVES DISCLOSURE WAS OUR IDEA OF MAJOR REFORM HE NOW BELIEVES THAT YOU HAVE TO START BACKING MONEY OUT OF THE SYSTEM BUT CAUTIONS THAT YOU HAVE TO BE CAREFUL IN ALL THIS REFORM THAT YOU DON'T END UP HAVING US HAVING TO SPEND MORE TIME TO RAISE MONEY MR MILLER'S SAFE DEMOCRATIC DISTRICT MAKES THE DEBATE SOMEWHAT ABSTRACT FOR HIM NOT SO FOR MR SHARP 50 WHOSE INDIANA CONSTITUENCY WHICH IS EVENLY BALANCED BETWEEN DEMOCRATS AND REPUBLICANS HAS PLACED HIM ON THE ELECTORAL RAZOR'S EDGE THROUGHOUT HIS CAREER OUTSPENT IN HIS FIRST FOUR SUCCESSFUL CAMPAIGNS REP SHARP HAS GROWN INCREASINGLY RELIANT ON THE EASY FLOW OF SPECIALINTEREST MONEY TO SMOOTH HIS PATH TO REELECTION HIS ACCUMULATING INFLUENCE AND SENIORITY ON THE IMPORTANT ENERGY AND COMMERCE COMMITTEE HAVE MADE HIM A MAGNET FOR PAC CONTRIBUTIONS WHICH HAVE MORE THAN DOUBLED TO ASSURE A CONTINUOUS FINANCIAL ADVANTAGE OVER GOP RIVALS FOR THE LAST DECADE LAST YEAR PACS LAVISHED 450520 ON HIS CAMPAIGN OR 72 OF THE TOTAL ONE SIMPLY CAN BE ALMOST INDIFFERENT SAYS THE AMIABLE FORMER POLITICAL SCIENTIST HIS CHAIRMANSHIP OF THE ENERGY AND POWER SUBCOMMITTEE MAKES HIM A GATEKEEPER FOR ENERGYPRICING AND POLLUTIONCONTROL LEGISLATION BUT HE SAYS I RARELY GET ANY PRESSURE FROM AGGRIEVED CONTRIBUTORS TRUE TO HIS LIBERALS ROOTS MR SHARP PRAISES CAMPAIGNFINANCE REFORM AS VALUABLE AND USEFUL BUT HE SAYS MONEY IS HARDLY THE ONLY SORT OF POLITICAL PRESSURE THAT DISTORTS POLICY THE BOTTOM LINE DEPENDS ON MY ETHICAL JUDGMENTS AND MY ACCOUNTABILITY TO THOSE CONSTITUENTS HE SAYS WE'RE BACK TO THE MOST FUNDAMENTAL HUMAN THINGS WHAT ARE WE MADE OF IF THE CURRENT POLITICAL ENVIRONMENT SOURS THE PUBLIC RESPONSE TO THAT QUESTION MR SHARP NURTURES HOPE FOR A TURNAROUND THAT SPREADING CYNICISM WILL ULTIMATELY ENGULF THE FLAGRANT IGNORANCE OF THE CONGRESSBASHERS PEOPLE WILL START TO DISTRUST THEM HE SAYS MR HEFNER A 63YEAROLD MODERATE FROM NORTH CAROLINA'S TEXTILE AND TOBACCO COUNTIES FACES THE ESTRANGEMENT THAT MOST LAWMAKERS EXPERIENCE BETWEEN THE REALITIES OF WASHINGTON AND THE VOTERS AT HOME HIS OPPONENT LAST YEAR WAS HIS MINISTER WHEN HE FIRST RAN FOR CONGRESS IN 1974 IRONICALLY HE MUST RELY INCREASINGLY ON MONEY FROM NATIONWIDE PACS TO REACH BACK TO HIS LARGELY WORKINGCLASS CONSTITUENCY WHO ARE EITHER TOO POOR OR TOO ALIENATED TO CONTRIBUTE PAC FUNDS ENABLED THE DEMOCRAT TO KEEP ABREAST OF BETTERFINANCED CHALLENGERS IN THE EARLY 1980S MR HEFNER HAS RAISED MORE THAN 350000 FROM THESE SOURCES IN EACH OF THE LAST TWO ELECTIONS GIVING HIM A BIG FINANCIAL EDGE HE IS WARY OF ANYTHING MORE THAN A VOLUNTARY TAX CHECKOFF FOR CAMPAIGN FINANCING I WOULDN'T VOTE FOR STRAIGHTUP PUBLIC FINANCING HE SAYS WITH A CERTAIN POIGNANCY MR HEFNER RECALLS HIS FIRST CAMPAIGN WHEN HE DUBBED BY THE MEDIA THE HILLBILLY FROM CABARRUS COUNTY STUMPED THE DISTRICT WITH THE LIKES OF THE OAK RIDGE BOYS COUNTRY BAND AND SEN SAM ERVIN WHO CALLED ON A PREELECTION RALLY TO SING LIFT ME UP ABOVE THE SHADOWS AND PLANT MY FEET ON HIGHER GROUND BUT THE DAYS WHEN MR HEFNER COULD DRAW THOUSANDS TO A ROUTINE CAMPAIGN EVENT HAVE LONG SINCE PASSED NOW HIS BEST HOPE AT A POLITICAL RALLY IS A CROWD OF 300 TO 400 AND INSTEAD OF EXPOSING HIMSELF TO THE ABUSE OF TOWNHALL FORUMS HE MAKES THE ROUNDS OF ROTARY CLUBS FESTIVALS AND THE OLD BOYS AT A HOMETOWN SHONEY'S RESTAURANT WHEN SOMEBODY RUNS ADS SAYING THAT I DON'T CARE I'VE GOT TO BELIEVE THAT PEOPLE KNOW ME BETTER THAT HE SAYS BUT THERE'LL COME A TIME WHEN PROBABLY THEY WON'T THAT IS PRECISELY WHAT MR LAFALCE FEARED AS ANTIINCUMBENT SENTIMENT BOILED IN RECENT YEARS AND REDISTRICTING THREATENED TO RESHUFFLE HIS UPSTATE NEW YORK DISTRICT SO HE RESPONDED WITH MORE AGGRESSIVE FUNDRAISING PERSONALLY SOLICITING CONTRIBUTIONS AND SWELLING HIS ALREADY SIZABLE WAR CHEST HIS PAC RECEIPTS MORE THAN DOUBLED TO 312614 IN 1992 AND HE STILL HAD MORE THAN 750000 IN THE BANK ONCE THE 1992 ELECTION WAS OVER CHALLENGING THE CLAIMS OF REFORMERS MR LAFALCE 53 CONTENDS HIS RELATIONSHIPS WITH ORGANIZED INTERESTS HERE AS A MEMBER OF THE BANKING COMMITTEE AND CHAIRMAN OF THE SMALL BUSINESS PANEL ARE LESS COMPROMISING THAN THOSE WITH SOME PEOPLE AND PRESSURE GROUPS AT HOME WHEN DEALING WITH ORGANIZED GROUPS YOU DON'T GO THROUGH NEARLY THE CONTORTIONS YOU HAVE TO GO THROUGH WHEN YOU'RE SEEKING MONEY FROM INDIVIDUALS HE SAYS WASHINGTON LOBBYISTS ARE PRETTY MUCH SATISFIED WITH ACCESS GEE GIVE ME A FAIR HEARING' THE FOLKS BACK HOME DON'T WANT ACCESS THEY WANT YOU REJUVENATED BY THE CHANCE TO WORK WITH A DEMOCRATIC PRESIDENT MR LAFALCE INTENDS TO GO ALONG WITH THE ADMINISTRATION'S PLAN BUT THE NEW YORKER EVEN QUESTIONS ITS UNDERLYING ASSUMPTION THAT GREATER ELECTION DAY COMPETITION IS GOOD FOR THE COUNTRY BECAUSE SCARED INCUMBENTS ARE MORE LIKELY TO DO THE EXPEDIENT THING THAN THE RIGHT ONE MR LAFALCE IS JUST THE SORT OF INCUMBENT WHOM DEMOCRATIC STRATEGISTS WORRY ABOUT WHEN THEY SPECULATE THAT CAMPAIGN REFORM COULD COST THE PARTY SOME 25 SEATS IN THE HOUSE HIS CUSTOMARILY HUGE MAJORITIES SLIPPED TO 55 IN HIS LAST TWO RACES BUT WHATEVER THE FATE OF THE PRESIDENT'S BILL MR LAFALCE SAYS HE HAS ALREADY ACHIEVED THE SECURITY HE CRAVES BY QUALIFYING FOR A CONGRESSIONAL PENSION LOSING NO LONGER IS THE WORST THING IN THE WORLD HE SAYS AND THIS ALSO ENABLES YOU TO TRULY PUT THE PUBLIC INTEREST AS YOUR PRIMARY OR EVEN SOLE CONSIDERATION 9305070053 930507 CANADA PRIMARY STEEL PRODUCTION OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 280771 METRIC TONS IN THE WEEK ENDED MAY 1 A 56 DECLINE FROM 297504 TONS THE PREVIOUS WEEK BUT AN 89 INCREASE FROM 257780 TONS A YEAR EARLIER SAID STATISTICS CANADA A GOVERNMENT AGENCY A METRIC TON IS EQUAL TO ABOUT 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 4761704 TONS A 33 INCREASE FROM 4609082 TONS A YEAR EARLIER 9305070052 930507 TECHNOLOGY BRIEF ROBERTS PHARMACEUTICAL CORP UNIT COMPLETES PACT TO BUY PRODUCT LINE FROM GLAXO ROBERTS PHARMACEUTICAL CORP EATONTOWN NJ SAID ITS CANADIAN UNIT COMPLETED AN AGREEMENT TO ACQUIRE A LINE OF PHARMACEUTICAL PRODUCTS FROM A GLAXO HOLDINGS PLC UNIT THE PRODUCTS INCLUDE A TOPICAL ANTIINFLAMMATORY STEROID A PRENATAL VITAMIN SUPPLEMENT A ZINC OINTMENT ANTIBIOTIC A MOISTURIZING CREAM AND A PROTECTIVE HAND CREAM IT ALSO WILL MARKET CERTAIN GLAXO PRODUCTS INCLUDING AN ANTIHYPERTENSIVE AGENT A DERMATOLOGICAL PRODUCT LINE AND A THROAT LOZENGE PRODUCT AND ROBERTS HAS THE OPTIONS TO PURCHASE THESE AND OTHER LINES IN THE FUTURE 9305070051 930507 CHINESE OIL COMPANY TO INVEST IN PLANT REFINERY IN INDONESIA JAKARTA CHINA'S STATE OIL COMPANY SAID IT PLANS TO INVEST IN A PROPOSED OIL REFINERY AND FERTILIZER PLANT IN INDONESIA TOGETHER WITH A SON OF PRESIDENT SUHARTO AND TWO OTHER JAKARTA BUSINESSMEN NO DETAILS WERE AVAILABLE ON THE PLANS THAT SHENG HUAREN PRESIDENT OF CHINA PETROCHEMICAL CORP DISCUSSED WITH PRESIDENT SUHARTO DURING A MEETING TUESDAY LAST WEEK NEAR THE START OF MR SHENG'S JAKARTA VISIT THE CHINESE COMPANY KNOWN AS SINOPEC AGREED TO UNDERTAKE THE PROJECTS WITH THREE BUSINESSMEN LED BY TIMBER TYCOON PRAJOGO PANGESTU THE OTHER TWO MEN ARE BAMBANG TRIHATMODJO AND HENRY PRIBADI MR BAMBANG THE SON OF THE PRESIDENT HEADS THE GROWING BIMANTARA CITRA GROUP MR PRIBADI HEADS HIS OWN CONCERN CALLED THE NAPAN GROUP MESSRS PRAJOGO BAMBANG AND PRIBADI ARE THE BACKERS OF A 16 BILLION PETROCHEMICAL COMPLEX UNDER CONSTRUCTION IN WEST JAVA INDONESIAN NEWSPAPERS REPORTED THAT SINOPEC AND THE INDONESIANS PLAN TO INVEST ABOUT 2 BILLION IN A 150000BARRELADAY REFINERY AND 1 BILLION IN A FERTILIZER PLANT BUT NO APPLICATIONS HAVE YET BEEN MADE TO INDONESIA'S INVESTMENT COORDINATING BOARD AND NO SITES HAVE BEEN CHOSEN IT'S ALSO NOT CLEAR WHAT EQUITY SINOPEC MIGHT TAKE OR JUST HOW THE HUGE PROJECTS CAN BE FINANCED ASKED FOR DETAILS ON THE PROPOSED VENTURES AFTER HIS MEETING WITH MR SUHARTO MR SHENG SAID ONLY THAT THE PARTNERS WOULD FIRST CONDUCT FEASIBILITY STUDIES A FERTILIZER PLANT HE SAID COULD EXPORT PRODUCTION TO CHINA IF THE REFINERY AND FERTILIZER PLANT SHOULD PROCEED THEY WOULD BE BY FAR CHINA'S BIGGEST VENTURES IN INDONESIA BUSINESS ANALYSTS SAID THAT THE TWO VENTURES COULD BE A DEFT POLITICAL MOVE BY MR PRAJOGO ONE OF SEVERAL ETHNICCHINESE BUSINESSMEN WHO ARE CLOSE TO MR SUHARTO A NUMBER OF BUSINESS GROUPS HEADED BY INDONESIAN CHINESE HAVE BEEN CRITICIZED IN SOME JAKARTA CIRCLES FOR INVESTING IN CHINA AND A SINOPEC ROLE IN BIG INDONESIAN PROJECTS COULD MAKE THE CAPITAL FLOW IN THE OTHER DIRECTION THEY SAID 9305070050 930507 MUNNELL SAILS THROUGH CONFIRMATION HEARING FOR POST AT TREASURY WASHINGTON ALICIA MUNNELL PRESIDENT CLINTON'S NOMINEE FOR ASSISTANT TREASURY SECRETARY FOR ECONOMIC POLICY GOT OFF EASY IN HER CONFIRMATION HEARING YESTERDAY ABOUT HER VIEWS ON TAXING PENSION FUNDS MS MUNNELL WHO WAS SENIOR VICE PRESIDENT OF THE BOSTON FEDERAL RESERVE BANK FOR 10 YEARS BEFORE COMING TO THE TREASURY WROTE A CONTROVERSIAL ARTICLE LAST YEAR PROPOSING A ONETIME 15 TAX ON ALL PENSIONFUND ASSETS AND A 15 ANNUAL TAX ON PENSION EARNINGS RETIREES WOULD THEN DRAW THEIR PENSIONS TAXFREE CURRENTLY PENSION FUNDS AREN'T TAXED UNTIL WITHDRAWAL MS MUNNELL WAS ASKED ONE QUESTION ABOUT THAT ARTICLE SHE STRESSED THAT THE IDEA WAS IN NO WAY PART OF MR CLINTON'S ECONOMIC PLAN AND THAT SHE WAS NOT A PART OF ANY MOVE TO GET THE TAX CONSIDERED MS MUNNELL'S NOMINATION WAS QUICKLY APPROVED BY THE SENATE FINANCE COMMITTEE AND NOW MUST GO TO THE FULL SENATE FOR CONFIRMATION 9305070049 930507 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA WILL PHASE OUT ITS IMPORT PERMIT SYSTEM WITHIN SIX YEARS GIVING FOREIGN COMPANIES GREATER ACCESS TO ITS VAST MARKET THE PROBEIJING NEWSPAPER WEN WEI PO IN HONG KONG SAID THE DECISION LINKED TO A SINOUS MEMORANDUM OF UNDERSTANDING LAST OCTOBER REFLECTS CHINA'S DESIRE TO JOIN THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH REQUIRES FURTHER MARKET OPENINGS TO GLOBAL COMPETITORS CHINA'S IMPORT PERMIT SYSTEM EFFECTIVELY SETS QUOTAS MEANWHILE CHINA ISSUED CUSTOMS RULES GIVING FOREIGNFUNDED ENTERPRISES PREFERENTIAL TARIFFS FOR IMPORTS AND EXPORTS THE OFFICIAL XINHUA NEWS AGENCY SAID AND THE CHINA DAILY SAID THAT IN AN EFFORT TO ATTRACT MORE FOREIGN CASH CHINA WILL LIFT ELECTRICITY CONTROLS AND RAISE RATES TO MAKE INVESTING IN POWER DEVELOPMENT PROFITABLE CHINA PLANS TO INCREASE ELECTRICITY PRODUCTION CAPACITY 50 IN THE NEXT FIVE YEARS BUT DOMESTIC FUNDING CAN PROVIDE ONLY 70 TO 80 OF THE MONEY NEEDED INDUSTRIAL OUTPUT IS AT 60 OF CAPACITY BECAUSE OF INSUFFICIENT ENERGY SUPPLIES THE EUROPEAN COMMUNITY'S COMPETITION CHIEF KAREL VAN MIERT WILL ASK THE EC COURT OF JUSTICE TO FORCE MEMBER STATES TO DISMANTLE THEIR MONOPOLIES ON IMPORTS AND EXPORTS OF NATURAL GAS AND ELECTRICITY HALF OF THE 12 EC COUNTRIES LED BY FRANCE HAVE RESISTED EC COMMISSION PLANS TO OPEN THE ENERGY MARKET TO CROSSBORDER TRADE THE DISAGREEMENT IS ABOUT WHETHER THE ENERGY SECTOR IS SUBJECT TO AN EC REQUIREMENT THAT STATE MONOPOLIES NOT DISCRIMINATE AGAINST CROSSBORDER RIVALS AMID LOW EXPECTATIONS FOR RESOLVING A FOURDAYOLD STRIKE IN EASTERN GERMANY INFORMAL WAGE TALKS RESUMED IN MECKLENBURGVORPOMMERN STATE THE IG METALL UNION EXPANDED ITS STRIKES IN THE STATE OF SAXONY TO 37 METAL COMPANIES FROM 20 THE WALKOUTS BEGAN MONDAY OVER A 9 PAYRAISE OFFER WHEN 26 WAS SET BY CONTRACT BOTH THE UNION AND EMPLOYERS BELIEVE IT WOULD BE MORE USEFUL TO SEEK A PILOT WAGE AGREEMENT FOR THE ENTIRE REGION IN SAXONY THE EASTERN INDUSTRIAL HEARTLAND JAPAN REFRAINED FROM WARNING FINANCIAL INSTITUTIONS ABOUT THEIR REALESTATE LENDING EVEN THOUGH GROWTH OF THESE DEALS EXCEEDED TARGETS A WARNING SYSTEM WAS SET UP IN LATE 1991 TO PREVENT SPECULATIVE LANDPRICE INCREASES A WARNING IS TRIGGERED IF PROPERTY AND OVERALL LENDING GROWTH DIFFER BY MORE THAN THREE PERCENTAGE POINTS FOR TWO MONTHS IN A ROW THE FINANCE MINISTRY SAID THE SECTOR'S STRONGER GROWTH IN JANUARY AND FEBRUARY DIDN'T NECESSARILY SIGNAL SPECULATION GIVEN HEAVY PUBLICWORKS SPENDING TO BOOST THE ECONOMY NEW ZEALAND PROPOSED LETTING THE PRIVATE SECTOR BUILD AND OPERATE PRISONS THE PLAN IS INTENDED TO DETERMINE WHETHER PRIVATELY MANAGED PENAL INSTITUTIONS CAN BE RUN LESS EXPENSIVELY AND TO PROVIDE A PERFORMANCE COMPARISON WITH THE 20 STATERUN PRISONS THE GOVERNMENT WHICH HAS SOLD ABOUT 10 BILLION OF STATE ENTERPRISES IN THE PAST DECADE SAID THE NEW PROGRAM DOESN'T SIGNAL A PRISON SELLOFF THOUGH CHINA ENCOURAGES PRIVATE OWNERSHIP OF HOUSING SOARING PRICES ARE KEEPING APARTMENTS EMPTY AND FAMILIES IN CRAMPED QUARTERS THE GOVERNMENT ESTIMATED THAT 54 BILLION SQUARE FEET OF APARTMENT SPACE IS FOR SALE AT PRICES THAT JUMPED 36 LAST YEAR WHILE LIVING SPACE FOR URBAN FAMILIES AVERAGES LESS THAN 22 SQUARE FEET A PERSON IN THE MID1980S CHINA RELIEVED SOME ENTERPRISES FROM HAVING TO PROVIDE WORKERS WITH LOWRENT HOUSING IT ALSO ALLOWED PURCHASES OF APARTMENTS AND BUILT NEW ONES BUT A TWOROOM APARTMENT CAN COST AS MUCH AS 12 YEARS' WAGES THE ASIAN DEVELOPMENT BANK ENDED ITS ANNUAL MEETING WITHOUT ACCORD ON A CAPITAL INCREASE TO EXPAND LENDING OVER THE NEXT FOUR YEARS SEVERAL DONOR COUNTRIES LED BY THE US PROPOSED INSTEAD AN INDEPENDENT REVIEW OF THE ADB PORTFOLIO TO IMPROVE LENDING QUALITY RATHER THAN QUANTITY THOUGH THE US SAID THE CLINTON ADMINISTRATION HOLDS A POSITIVE VIEW FOR WORKING WITH ASIA AND ITS INSTITUTIONS OTHER DELEGATES SAID WASHINGTON HASN'T FORMED AN ECONOMIC STRATEGY FOR THE REGION'S DEVELOPMENT AND SENT LOWERLEVEL OFFICIALS TO THE ADB MEETING THE MANILABASED BANK WITH 53 MEMBER COUNTRIES SAID THE REJECTION OF DOUBLING ITS 2322 BILLION IN AUTHORIZED CAPITAL COULD CURTAIL ITS LENDING ACTIVITIES SHARPLY AND DAMAGE THE POOREST MEMBER COUNTRIES THAT NEED INVESTMENT SOME DELEGATES PREDICTED A US COMPROMISE TO PROVIDE NEW CAPITAL TO HELP THE ADB GET THE COLLATERAL NEEDED TO INCREASE LENDING COMMITMENTS WHICH HAVE GROWN 11 ANNUALLY AND WHICH TOTALED 512 BILLION LAST YEAR A PORTFOLIO REVIEW COULD BE COMPLETED IN SIX MONTHS TO STEM A STEADY DECLINE IN INVESTMENT FROM ABROAD SOUTH KOREA'S FINANCE MINISTRY IS CONSIDERING CREATION OF A COMPLEX EXCLUSIVELY FOR FOREIGN COMPANIES AND OFFERING THEM TAX LENDING AND OTHER INCENTIVES FOR THEIR OPERATIONS NORWEGIAN WHALERS KILLED THE FIRST MINKE OF 136 SOUGHT IN THEIR ANNUAL RESEARCH PROGRAM NORWAY WHICH SAYS MINKES ARE PLENTIFUL ENOUGH TO SUSTAIN A COMMERCIAL HUNT FACES PROTESTS FOR ITS PLAN TO RESUME WHALING THIS YEAR DESPITE A 1986 GLOBAL BAN WITH EXEMPTIONS ONLY FOR SCIENTIFIC RESEARCH 9305070048 930507 IRS MOVES TO CURB SUSPECTED VIOLATIONS IN MUNICIPAL ISSUES WASHINGTON THE INTERNAL REVENUE SERVICE IS TAKING CONCRETE STEPS TO CRACK DOWN ON SUSPECTED TAXEXEMPT BOND ABUSES BY NONPROFIT ENTITIES INCLUDING HOSPITALS NURSING HOMES AND COLLEGES MARCUS OWENS A SENIOR IRS OFFICIAL SAID THE AGENCY'S EXEMPT ORGANIZATIONS ARM CURRENTLY IS AUDITING 27 NONPROFIT ORGANIZATIONS FOR THE SPECIFIC PURPOSE OF DETERMINING IF THEIR MUNICIPAL BOND ISSUES COMPLY WITH LEGAL REQUIREMENTS SUSPECTED ABUSES INCLUDE EXCEEDING BONDISSUANCE VOLUME CAPS BREAKING RULES BARRING ARBITRAGE IN THE MUNICIPAL BOND MARKET VIOLATING LIMITS ON FEES TO BOND INTERMEDIARIES AND CHANNELING IMPERMISSIBLE BENEFITS TO PRIVATE BUSINESS INTERESTS THE IRS OFFICIAL SAID OWENS ALSO SAID SOME MUNICIPAL BONDRELATED QUESTIONS ARE BEING PURSUED IN THE COURSE OF BROADER COORDINATED AUDITS LAUNCHED BY THE IRS'S EXEMPT ORGANIZATIONS UNIT TO DETERMINE IF CERTAIN TAXEXEMPT ENTITIES HAVE SO DIVERSIFIED INTO QUESTIONABLE ACTIVITIES AS TO WARRANT REVOCATION OF THEIR TAXEXEMPT STATUS MR OWENS SAID 23 HOSPITALS AND HEALTHCARE FACILITIES AND 10 COLLEGES AND UNIVERSITIES ARE AMONG THE 48 TAXEXEMPT ENTITIES NOW UNDERGOING THESE NEW COORDINATED AUDITS HE PREDICTED THAT ENFORCEMENT ACTION WILL COST SOME ORGANIZATIONS THEIR TAXEXEMPT STATUS AND SAID SUCH A RESULT WOULD HAVE ADVERSE IMPLICATIONS FOR ANY TAXEXEMPT BONDS THESE ENTITIES MAY HAVE OUTSTANDING NONE OF THE ENTITIES BEING AUDITED WERE IDENTIFIED 9305070047 930507 WEEKLY PRODUCTION OF SUBARU LEGACY IS REDUCED BY 25 DETROIT SUBARUISUZU AUTOMOTIVE INC SAID IT SLASHED WEEKLY OUTPUT OF THE SUBARU LEGACY PASSENGER CAR BY ABOUT 25 OR 300 UNITS BECAUSE OF SLOW SALES AND HIGH INVENTORY THE LAFAYETTE IND ASSEMBLY PLANT THAT BUILDS THE LEGACY IS JOINTLY OWNED BY JAPAN'S ISUZU MOTORS LTD AND SUBARU OF AMERICA A UNIT OF JAPAN'S FUJI HEAVY INDUSTRIES LTD A SPOKESMAN AT THE SUBARUISUZU AUTOMOTIVE FACILITY SAID THE PRODUCTION CUTBACK WILL LAST A FEW MONTHS AND WON'T RESULT IN LAYOFFS AT THE PLANT SUBARU IS STRUGGLING TO DEFLATE BLOATED INVENTORIES OF ITS SLOWSELLING LEGACY MODEL A SUBARU SPOKESMAN SAID LEGACY HAD AN AVERAGE 298DAY SUPPLY THROUGH APRIL THAT'S SHARPLY HIGHER THAN THE 60 TO 65DAY SUPPLY LEVEL CONSIDERED IDEAL SUBARU IS ALSO OFFERING DEALER INCENTIVES OF UP TO 2000 IN A PUSH TO MOVE 1993 LEGACY MODELS OFF DEALERS' LOTS GENERAL MOTORS CORP SAID IT WILL CONTINUE TO OPERATE A SINGLE SHIFT AT ITS ARLINGTON TEXAS ASSEMBLY PLANT NEXT WEEK BECAUSE OF SLOW SALES OF ITS LARGE SEDANS AND FORD MOTOR CO SAID IT WILL IDLE NEXT WEEK ITS WAYNE MICH ASSEMBLY PLANT THAT BUILDS THE FORD ESCORT MODEL BECAUSE OF SLOW SALES SEPARATELY GM FORD AND CHRYSLER CORP HAVE SCHEDULED OVERTIME AT A COMBINED TOTAL OF 40 US AND CANADIAN ASSEMBLY PLANTS THIS WEEK AND NEXT ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD 233311 CARS AND TRUCKS THIS WEEK UP 63 FROM THE 219436 UNITS BUILT IN THE SAME PERIOD A YEAR AGO IN APRIL US PRODUCTION INCREASED BY 114 TO 941123 TOTAL VEHICLES THIS YEAR FROM 844520 IN THE SAME MONTH LAST YEAR 9305070046 930507 US MAY BAN SALE OF OVERSEAS AIRLINE ROUTES MOVE LIKELY WOULD HURT SOME TROUBLED CARRIERS BUT OTHERS MAY BENEFIT BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS MULLING A BAN ON THE SALE OF OVERSEAS AIR ROUTES WHICH HAVE BECOME MULTIMILLIONDOLLAR ASSETS FOR US AIRLINES THE TRANSPORTATION DEPARTMENT IS CONDUCTING A FULL REVIEW OF THE GOVERNMENT'S INTERNATIONALROUTE POLICIES INCLUDING WHETHER IT SHOULD CONTINUE TO LET AIRLINES TREAT GOVERNMENTALLOCATED ROUTES AS CORPORATE ASSETS AND SELL THEM AT LARGE PROFITS ACCORDING TO ADMINISTRATION OFFICIALS A BAN ON SUCH SALES WOULD REVERSE A LONGSTANDING POLICY OF THE REAGAN AND BUSH ADMINISTRATIONS AND COULD DIMINISH THE ASSET BASE OF SEVERAL MAJOR CARRIERS INCLUDING UAL CORP'S UNITED AIR LINES AMR CORP'S AMERICAN AIRLINES AND DELTA AIR LINES TOGETHER THEY PAID MORE THAN 28 BILLION TO ACQUIRE ROUTES FROM CASHSTRAPPED CARRIERS YOU WOULD BE BASICALLY REMOVING MILLIONS OF DOLLARS FROM THE ASSETS OF THOSE CARRIERS SAID JEFFREY SHANE FORMER ASSISTANT TRANSPORTATION SECRETARY FOR POLICY AND INTERNATIONAL AFFAIRS IN THE BUSH ERA THE DEPARTMENT ALSO INTENDS TO REEXAMINE THE GOVERNMENT'S POLICY OF LETTING AIRLINES SELL LANDING SLOTS AT FOUR OF THE NATION'S MOST CONGESTED AIRPORTS WASHINGTON NATIONAL CHICAGO O'HARE INTERNATIONAL AND NEW YORK'S LAGUARDIA AND KENNEDY AIRPORTS MOST AIRLINES COULDN'T BE REACHED IMMEDIATELY FOR COMMENT A BAN WOULD BE MOST HARMFUL TO FINANCIALLY STRAPPED CARRIERS WHICH OFTEN DEPEND ON ROUTES SALES TO RAISE CASH BY THE SAME TOKEN HEALTHIER CARRIERS COULD BENEFIT BECAUSE A BAN WOULD SHARPLY LOWER THE COST OF EXPANDING OPERATIONS AN AMR SPOKESMAN SAID THE COMPANY WHICH HAS SPENT MORE THAN 1 BILLION BEEFING UP ITS INTERNATIONAL ROUTES ISN'T NECESSARILY OPPOSED TO A BAN ALTHOUGH IT HASN'T SEEN PRECISELY WHAT THE ADMINISTRATION IS CONSIDERING OUR POSITION HAS BEEN CONSISTENTLY THAT WE ARE PHILOSOPHICALLY OPPOSED TO THE GOVERNMENT'S ALLOWING AIRLINES TO SELL INTERNATIONAL ROUTES BECAUSE THE ROUTES ARE REALLY PUBLIC PROPERTY THEY BELONG TO THE UNITED STATES GOVERNMENT HE SAID IF THERE IS AN AIRLINE THAT IS UNWILLING OR UNABLE TO SERVE A CERTAIN ROUTE WE BELIEVE THE GOVERNMENT SHOULD REALLOCATE THOSE ROUTES TO AIRLINES THAT ARE IN A POSITION TO SERVE THEM HE ADDED CURRENTLY TRANSPORTATION DEPARTMENT OFFICIALS ARE VIGOROUSLY DEBATING THE ISSUE OF INTERNATIONALROUTE SALES AS PART OF THEIR REVIEW OF NUMEROUS COMPETING BIDS TO BUY THREE ROUTES TO BRITAIN HELD BY USAIR GROUP'S USAIR UNIT IN MARCH THE DEPARTMENT CLEARED BRITISH AIRWAYS TO BUY A 199 VOTING STAKE IN USAIR GROUP FOR 300 MILLION ON CONDITION THAT THE AIRLINE SELL OFF ITS RIGHTS TO SERVE LONDON FROM PHILADELPHIA BALTIMORE AND CHARLOTTE NC THE USAIR ROUTES ARE HIGHLY COVETED BY CARRIERS VYING TO EXPAND THEIR SHARE OF THE LUCRATIVE TRANSATLANTIC MARKET UNITED FOR EXAMPLE HAS OFFERED TO BUY THE USAIR ROUTE FROM PHILADELPHIA TO LONDON'S GATWICK AIRPORT FOR 145 MILLION BUT ONLY IF THE BRITISH AGREE TO TRANSFER THAT ROUTE AUTHORITY TO THE CHICAGOLONDON HEATHROW MARKET HEATHROW AIRPORT IS ONE OF THE GREAT CROSSROADS OF INTERNATIONAL AVIATION AND THE MOST DESIRABLE OF LONDON'S THREE AIRPORTS AMERICAN AIRLINES MEANWHILE HAS COMPLICATED THE MATTER FURTHER BY ASKING THE TRANSPORTATION DEPARTMENT TO AWARD IT THE ROUTE FREE AMERICAN SAYS IT WOULD FLY THE PHILADELPHIALONDON GATWICK ROUTE AS AUTHORIZED UNDER AN AVIATION AGREEMENT WITH THE UNITED KINGDOM FOR THE PAST DECADE US CARRIERS HAVE BEEN TRYING TO EXTEND THEIR OVERSEAS REACH AND EXPAND THEIR GLOBAL MARKET SHARE AMERICAN PAID 916 MILLION TO ACQUIRE LATIN AMERICAN ROUTES FROM NOWDEFUNCT EASTERN AIRLINES AND THREE CHOICE ROUTES TO LONDON HEATHROW FROM TRANS WORLD AIRLINES DELTA PUT UP 551 MILLION FOR THE FRANKFURT HUB OF PAN AMERICAN WORLD AIRWAYS WHICH ALSO HAS GONE OUT OF BUSINESS AS FOR UNITED IT PAID ALMOST 12 BILLION TO ACQUIRE PAN AM'S LONDON HEATHROW LATIN AMERICA AND PACIFIC ROUTES HOWEVER THE TRANSPORTATION DEPARTMENT DECIDES THE INTERNATIONALROUTE QUESTION IT IS BOUND TO BE CONTROVERSIAL WERE THE DEPARTMENT TO RULE OUT FURTHER ROUTE SALES IN FAVOR OF EXERCISING ITS REGULATORY AUTHORITY TO ALLOT ROUTES US AIRLINES WOULDN'T BE ABLE TO LIQUIDATE THEIR ASSETS SAID MR SHANE AN AVIATION ATTORNEY WITH THE LAW FIRM WILMER CUTLER & PICKERING YOU WOULD ALSO BE PREVENTING CARRIERS FROM REALIZING THE ECONOMIC BENEFITS OF THE EFFORT THEY PUT IN DEVELOPING THESE ROUTES HE ADDED IT REMAINS TO BE SEEN HOW MUCH OF A MARKET FOR INTERNATIONAL ROUTES THERE IS BEYOND THE USAIR ROUTES THE PREVIOUS ROUTE TRANSACTIONS WERE DISTRESS SALES BY FINANCIALLY TROUBLED CARRIERS MR SHANE SAID FOR NORTHWEST AIRLINES A BAN COULD SEVERELY AFFECT THE CARRIER'S ASSET BASE AT A TIME WHEN IT'S STRUGGLING TO RESTRUCTURE ITS FINANCES THE CARRIER'S MOST VALUABLE ASSET IS ITS PACIFIC ROUTE STRUCTURE WHICH IS CONSIDERED BY CHRISTINE DALEY AN INDUSTRY ANALYST AT BEAR STEARNS & CO TO BE WORTH ABOUT 26 BILLION IN A RECENT RESEARCH REPORT MS DALEY ESTIMATED THAT NORTHWEST'S TOTAL ASSETS CURRENTLY HAVE A LIQUIDATION VALUE OF ABOUT 65 BILLION WHILE THE CARRIER'S TOTAL LIABILITIES ARE AN ESTIMATED 48 BILLION A SPOKESMAN FOR NORTHWEST AIR BASED IN ST PAUL MINN AND A UNIT OF CLOSELYHELD WINGS HOLDINGS INC DECLINED TO COMMENT ON THE GOVERNMENT'S POSSIBLE BAN BRIDGET O'BRIAN IN HOUSTON AND BRETT PULLEY IN CHICAGO CONTRIBUTED TO THIS ARTICLE 9305070045 930507 HOUSE PANEL MEASURE WOULD ALLOW AUCTION OF RADIO AIRWAVES WASHINGTON THE HOUSE TELECOMMUNICATIONS PANEL UNANIMOUSLY APPROVED A BILL AUTHORIZING THE FEDERAL COMMUNICATIONS COMMISSION TO ALLOCATE PART OF THE RADIO SPECTRUM THROUGH AN AUCTION PROCESS COMPETITIVE BIDDING BY NEW USERS OF THE AIRWAVES PRIMARILY EMERGING PERSONAL COMMUNICATIONS SERVICES SUCH AS POCKET PHONE AND HANDHELD COMPUTER MARKETS WOULD GENERATE ABOUT 7 BILLION IN REVENUE FOR THE FEDERAL GOVERNMENT ACCORDING TO CONGRESSIONAL BUDGET OFFICE ESTIMATES THE SYSTEM LARGELY WOULD REPLACE PROBLEMPLAGUED LOTTERIES WHICH HAVE BEEN USED TO ALLOCATE SPECTRUM FOR CELLULAR TELEPHONES AND SOCALLED WIRELESS CABLE SERVICES THE SENATE COMMERCE COMMITTEE IS EXPECTED NEXT WEEK TO APPROVE A BILL ALLOWING AUCTIONS OF THE AIRWAVES BUT THE SCOPE OF THAT MEASURE IS UNCERTAIN CURRENT LEGISLATION CALLS FOR A RELATIVELY MODEST TEST OF AUCTION PROCEDURES BUT SENATE AIDES SAID THE COMMITTEE IS LIKELY TO EXPAND THE MEASURE SIGNIFICANTLY THE HOUSE BILL WOULDN'T APPLY TO THE ENTIRE RADIO SPECTRUM ALLOCATED BY THE FCC INSTEAD IT WOULD TARGET PERSONAL COMMUNICATIONS AND OTHER SERVICES THAT FCC LICENSEES SELL TO SUBSCRIBERS THE BILL ACCOMPLISHES THE GOAL OF IMPROVING THE LICENSING PROCESS WHILE AT THE SAME TIME RAISING SUBSTANTIAL REVENUES FOR THE PUBLIC SAID REP EDWARD MARKEY D MASS CHAIRMAN OF THE TELECOMMUNICATIONS SUBCOMMITTEE LAWMAKERS HOPE THAT SPECTRUM AUCTIONS ALSO WILL PREVENT LENGTHY DELAYS IN GETTING NEW TECHNOLOGIES TO MARKET 9305070044 930507 WHO'S NEWS ALLIANCE CAPITAL ELECTS NEW DIRECTORS IN STEP FOR EQUITABLE MERGER NEW YORK INVESTMENT ADVISERS ALLIANCE CAPITAL MANAGEMENT LP ELECTED THREE DIRECTORS TO NEWLY CREATED OFFICERS' POSTS AND ADDED A NEW BOARD MEMBER AS IT COMPLETES ITS MERGER WITH EQUITABLE CAPITAL MANAGEMENT CORP ALLIANCE'S BOARD ELECTED BRUCE W CALVERT 46 AS VICE CHAIRMAN OF THE BOARD AND CHIEF INVESTMENT OFFICER JOHN D CARIFA 48 WAS ELECTED PRESIDENT AND CHIEF OPERATING OFFICER AND ALFRED HARRISON 55 ALSO WAS NAMED VICE CHAIRMAN FRANK SAVAGE 54 CURRENTLY CHAIRMAN OF EQUITABLE CAPITAL WAS ELECTED TO A NEW ALLIANCE BOARD SEAT BRINGING THE TOTAL NUMBER OF DIRECTORS TO 13 MESSRS CALVERT AND HARRISON FORMERLY WERE EXECUTIVE VICE PRESIDENTS OF ALLIANCE AND MR CARIFA WAS CHIEF FINANCIAL OFFICER AND WILL CONTINUE TO SERVE IN THAT ROLE THE THREE NEW POSTS WERE CREATED TO HELP ALLIANCE MANAGE BOTH ITS RECENT GROWTH AND ITS MERGER WITH EQUITABLE CAPITAL A SPOKESWOMAN SAID ALLIANCE WHICH IS 55OWNED BY LIFE INSURER EQUITABLE COS AGREED EARLIER THIS YEAR TO BUY EQUITABLE'S INVESTMENT ADVISORY ARM EQUITABLE CAPITAL MANAGEMENT FOR 625 MILLION NEWLY ISSUED PARTNERSHIP UNITS IN ALLIANCE THE TRANSACTION EXPECTED TO BE COMPLETED IN THE SECOND QUARTER WILL BOOST EQUITABLE'S OWNERSHIP OF ALLIANCE TO 65 FROM 55 SINCE 1990 ALLIANCE'S ASSETS UNDER MANAGEMENT HAVE RISEN TO 64 BILLION FROM 46 BILLION AND ITS STAFF HAS GROWN TO 863 FULLTIME EMPLOYEES FROM 683 THE MERGER WITH EQUITABLE IS EXPECTED TO BOOST THE AMOUNT OF MONEY IT MANAGES TO NEARLY 100 BILLION 9305070043 930507 CORRECTIONS & AMPLIFICATIONS REP CHARLES RANGEL IS A DEMOCRAT FROM NEW YORK AN ARTICLE WEDNESDAY INCORRECTLY REPORTED HIS PARTY AFFILIATION CHRISTIE'S INTERNATIONAL PLC GUARANTEES THE AUTHENTICITY OF WORKS IT SELLS FOR FIVE YEARS AS LONG AS THEY WERE PRODUCED AFTER 1870 AN ARTICLE YESTERDAY INCORRECTLY SAID THE GUARANTEE APPLIED TO WORKS PRODUCED BEFORE 1870 ALSO MAGAZINE PUBLISHER FRANCES LEAR WAS A LOSING BIDDER FOR A PAINTING BY JACKSON POLLOCK AT A RECENT CHRISTIE'S SALE AN ARTICLE WEDNESDAY INCORRECTLY SAID MS LEAR WAS A LOSING BIDDER FOR A ROY LICHTENSTEIN PAINTING TAUBMAN CENTERS INC'S FIRSTQUARTER EARNINGS OF EIGHT CENTS A SHARE MAY OR MAY NOT HAVE BEEN AN EARNINGS SURPRISE THE ANALYSTS WHO FOLLOW THE REAL ESTATE INVESTMENT TRUST USE DISTRIBUTABLE CASH FLOW TO MEASURE PERFORMANCE RATHER THAN NET INCOME THE DISTRIBUTABLE CASH FLOW WAS IN LINE WITH ANALYSTS' ESTIMATES BECAUSE OF AN ERROR IN THE ZACKS INVESTMENT RESEARCH DATABASE TAUBMAN CENTERS WAS INCORRECTLY SHOWN AS A NEGATIVE SURPRISE IN YESTERDAY'S QUARTERLY EARNINGS SURPRISES TABLE 9305070042 930507 KIDDER NAMES NEWMAN TO POST NEW YORK KIDDER PEABODY & CO INC SAID IT HIRED WILLIAM J NEWMAN AS MANAGING DIRECTOR AND CHIEF INVESTMENT STRATEGIST FILLING A VACANCY CREATED WHEN STEFAN ABRAMS LEFT IN OCTOBER TO JOIN A LOS ANGELESBASED INVESTMENT FIRM MR NEWMAN 54 YEARS OLD HAD BEEN A MANAGING DIRECTOR AND HEAD OF THE ACTIVE EQUITY GROUP AT BANKERS TRUST CO AT KIDDER A SUBSIDIARY OF GENERAL ELECTRIC CO MR NEWMAN ALSO WILL HEAD THE INVESTMENT POLICY COMMITTEE HE WILL REPORT TO THEODORE J JOHNSON MANAGING DIRECTOR AND HEAD OF KIDDER'S EQUITY RESEARCH GROUP KIDDER SAID IT LOOKED INSIDE AND OUTSIDE THE FIRM FOR A SUCCESSOR TO MR ABRAMS WHO JOINED THE TRUST COMPANY OF THE WEST 9305070041 930507 BULGARIA IS SLOW TO PULL THE TRIGGER ON SELLOFF PLANS ARMS FIRM SEEKS PRIVATIZATION BUT STATE BAN INDECISION AND SPATS HAMPER INVESTORS BY ERNEST BECK STAFF REPORTER OF THE WALL STREET JOURNAL ALL KALASHNIKOVS ARE NOT CREATED EQUAL AS ANY ARMS DEALER EXPERIENCED SOLDIER OR AFICIONADO OF THE INFAMOUS RUSSIAN AK47 ASSAULT RIFLE WILL TELL YOU PETER DEMIREV DIRECTOR OF ARSENAL CORP BULGARIA'S BIGGEST STATEOWNED DEFENSE CONTRACTOR IS ALSO A BELIEVER IN THE THEORY OF A KALASHNIKOV HIERARCHY HE SAYS HIS COMPANY IS AT THE TOP OF THE HEAP WITH ITS PRODUCTION OF THE WORLD'S BEST VERSION OF THE RIFLE OURS IS MORE STABLE ACCURATE AND RELIABLE THAN THESE NEWFANGLED MODELS BECAUSE IT'S THE ONLY ONE MADE FROM THE ORIGINAL MOLD HE SAYS PROUDLY WHILE MR DEMIREV WON'T SAY HOW MANY OF THE RIFLES ROLL OFF THE ASSEMBLY LINE HERE AT THIS GIANT ONCE SECRET ARMS FACTORY TUCKED AWAY IN THE HILLS OF CENTRAL BULGARIA HE IS SURE THAT HE'S GOT A GOOD PRODUCT HIS PROBLEM HE NEEDS FRESH CASH TO MODERNIZE FACILITIES TO DEVELOP NEW LINES AND TO FIND MARKETS NOW THAT PREVIOUSLY SECURE DEMAND FROM FORMER WARSAW PACT CUSTOMERS AND THEIR CLIENT STATES HAS DRIED UP MR DEMIREV WOULD LIKE TO PRIVATIZE AT LEAST PART OF ARSENAL BUT UNFORTUNATELY HE SAYS THE GOVERNMENT HAS SLAPPED A TEMPORARY BAN ON SUCH A MOVE IN HOPES OF SUPPLANTING BULGARIA'S IMAGE AS ARMS SUPPLIER TO PARIAH STATES SUCH AS LIBYA AND IRAQ ARSENAL'S DILEMMA IS EMBLEMATIC OF BULGARIA'S PREDICAMENT AS IT SETS OFF BELATEDLY AND PLODDINGLY ON THE LONG ROAD TO PRIVATIZATION THERE ARE SOME HIDDEN JEWELS IN THE COUNTRY'S OTHERWISE RATHER RAMSHACKLE ECONOMY BUT POLITICAL BICKERING AND INDECISION ARE HAMPERING THE INFLUX OF FOREIGN INVESTORS NEEDED TO SPARK THE LONGDELAYED SELLOFF OF STATE ASSETS TWO YEARS OF CHANGING GOVERNMENTS AND SQUABBLING OVER THE PACE AND SCOPE OF THE ECONOMIC TRANSFORMATION HAS LEFT BULGARIA STILL PERCHED ON THE BRINK OF PRIVATIZATION SO FAR ONLY A SMALL STATEOWNED CAR REPAIR SHOP WORTH ABOUT 23000 HAS FOUND A BUYER FIVE OTHER AUCTIONS HAVE ENDED IN ABJECT FAILURE NEVERTHELESS BULGARIAN OFFICIALS QUIETLY PREDICT THAT 1993 WILL BE THE YEAR OF PRIVATIZATION WELL MAYBE A NEW GOVERNMENT OF NONPARTY THIRTYSOMETHING TECHNOCRATS IS MOVING QUICKLY TO LAY THE GROUNDWORK LAWS ON FOREIGN INVESTMENT AND JOINT VENTURES ARE FINALLY IN PLACE AND A PRIVATIZATION AGENCY BASED ON THE HUNGARIAN MODEL IS TARGETING SOME 800 OF 4000 STATEOWNED FIRMS FOR SALE PRIVATIZATION IS THE CORE ELEMENT OF OUR ECONOMIC RESTRUCTURING PACKAGE SAYS VALENTIN KARABASHEV DEPUTY PRIME MINISTER CLEARLY THERE'S A LOT OF CATCHING UP TO DO YET ARGUMENTS CONTINUE OVER WHICH SECTORS TO SELL AND WHICH TO KEEP IN STATE HANDS THE PRIVATIZATION AGENCY AND MINISTRIES SCUFFLE OVER HOW TO DIVIDE THE BIG STATE PIE AND ON THE SURFACE WHAT BULGARIA HAS TO OFFER THE RICKETY SOVIETMADE PLANES OF BALKAN AIRWAYS THE ROTTING RAILWAYS THE DELAPIDATED FARM COOPERATIVES AND TACKY EAST BLOC TOURIST HOTELS SEEM TO SCREAM BEWARE TO FOREIGN INVESTORS BULGARIA'S TIGHT TRADE RELATIONS WITH THE FORMER SOVIET UNION KEPT MOST OF THE COUNTRY'S PRODUCTS AND SERVICES WELL BELOW WESTERN STANDARDS ARSENAL COULD EMERGE AS AN EXCEPTION IT'S A COMMUNISTERA INDUSTRIAL BEHEMOTH THAT MIGHT BE A GOOD BUY IF RESTRUCTURED AND DOWNSIZED NOW HOWEVER THE PLACE IS A RUSTY MONUMENT TO BYGONE DAYS OF CENTRAL PLANNING THE HUGE EIGHTSQUAREMILE COMPLEX EMPLOYS 11000 WORKERS A STATUE OF FRIEDRICH ENGELS STANDS NEAR THE ENTRANCE STALINIST STARS ARE ETCHED ONTO OFFICE WINDOWS UNTIL RECENTLY THE FACILITY WAS OFF LIMITS TO FOREIGNERS WHICH IS WHY FEW PEOPLE KNEW THAT THE ARMS INDUSTRY WAS ONE OF THE MOST DEVELOPED AREAS OF BULGARIA'S ECONOMY ARSENAL SUPPLIED WARSAW PACT COUNTRIES NOT ONLY WITH KALASHNIKOVS BUT ALSO WITH MUNITIONS MINES ANTITANK WEAPONS MAKAROV PISTOLS AND ANTIAIRCRAFT MISSILES DESPITE FINANCIAL PROBLEMS AND PRODUCTION CUTBACKS OF 30 THE COMPANY IS SHOWING RESILIENCE BY COMING UP WITH FUTURISTIC WEAPONS ONE IS A SLEEK SNUBNOSED MACHINE GUN THAT LOOKS LIKE SOMETHING FROM AN ARNOLD SCHWARZENEGGER FILM IT'S MUCH BETTER THAN AN UZI BOASTS MR DEMIREV AS HE CRADLES THE WEAPON IN HIS ARM LIKE A BABY BECAUSE OF CHEAP LABOR AND PRODUCTION COSTS ARSENAL CAN CHURN OUT ITS UZI ALTERNATIVE FOR 350 EACH ABOUT HALF THE PRICE OF THE ORIGINAL ALL THIS REQUIRES MONEY THOUGH I'M CONVINCED THAT WE COULD EASILY UPGRADE THE FACTORY TO PRODUCE NATOQUALITY AND CALIBRATED WEAPONS LIKE THIS AND SELL THEM IN WESTERN EUROPE SOUTH AMERICA AND THE MIDDLE EAST MR DEMIREV SAYS THE US IS ALSO IN HIS SIGHTS A PRODUCTION LINE IS BEING RETOOLED TO MAKE SINGLEFIRE KALASHNIKOVS TO GET AROUND US RESTRICTIONS ON THE IMPORT OF AUTOMATIC WEAPONS UNTIL THE DEFENSEINDUSTRY PRIVATIZATION BAN IS LIFTED JOINT VENTURES CAN PROVIDE SOME NEW CAPITAL TO ARSENAL US DEFENSE CONTRACTOR MATRIX CORP FOR EXAMPLE IS ALREADY IN BULGARIA ITS RED WHITE AND BLUE NEON SIGN GLOWS OVER A DOWNTOWN SOFIA OFFICE BUILDING MATRIX IS WORKING WITH A BULGARIAN TRADING FIRM TO DEVELOP JOINT PROJECTS INCLUDING ONE WITH ARSENAL OTHER AMERICAN FIRMS ARE TRICKLING IN ON THE PROWL FOR BARGAINS BUT THEY'RE NOT LIKELY TO MAKE MUCH PROGRESS UNTIL BULGARIANS THEMSELVES ARE CONVINCED THAT PRIVATIZATION IS THE BEST SOLUTION SAYS ONE WESTERN DIPLOMAT WITH CAUTIOUS OPTIMISM BULGARIA ISN'T ON ANYONE'S RADAR SCREEN YET BUT IF IT GETS ITS ACT TOGETHER IT VERY WELL COULD BE QUITE SOON 9305070040 930507 INTERNATIONAL MAZARI ACTS TO PREVENT TERRORISTS FROM USING PAKISTAN FOR A BASE BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL ISLAMABAD PAKISTAN THE NEW PRIME MINISTER OF PAKISTAN SAYS HE HAS TAKEN FIRM STEPS INCLUDING FIRING THE INTELLIGENCE CHIEF TO ENSURE THAT TERRORISM DOESN'T EMANATE FROM THE COUNTRY NOW THAT THE WAR IS OVER WHATEVER THEY WANTED THEY HAVE ACHIEVED MR MAZARI SAID IN AN INTERVIEW AT HIS RESIDENCE IN A TIGHTLY GUARDED HILL COMPOUND OVERLOOKING ISLAMABAD SO NOW LET THEM LIVE IN PEACE AND GO BACK HOME WASHINGTON FUNDED AND ARMED THOUSANDS OF THE GUERRILLAS CALLED MUJAHEDEEN SOME HAVE SINCE GONE ON TO FIGHT IN OTHER WARS FROM BOSNIA TO TAJIKISTAN WHILE OTHERS MAY HAVE JOINED EXTREMIST GROUPS BASED IN OR NEAR PESHAWAR ON PAKISTAN'S RUGGED FRONTIER WITH AFGHANISTAN PAKISTAN ALREADY HAS EXPELLED MORE THAN 1200 FORMER FIGHTERS FROM THAT AREA MR MAZARI SAID THE EXPULSIONS HAVE RAISED PROTESTS FROM ISLAMIC GROUPS IN PAKISTAN WHICH ACCUSE THE GOVERNMENT OF BENDING TO US PRESSURE BUT MR MAZARI WENT SO FAR AS TO SUGGEST WASHINGTON SHOULD HELP THE MILITANTS TO RETURN TO THEIR HOMELANDS OR IN CASES WHERE MILITANT FUNDAMENTALISTS AREN'T WELCOME BACK FIND THEM THIRDCOUNTRY HOMES OR TAKE THEM IN ITSELF AMERICA IS A VERY LARGE COUNTRY VERY POWERFUL VERY RICH MR MAZARI SAID THEY CAN ACCOMMODATE THEM BUT PAKISTAN'S PROBLEM ISN'T CONFINED TO IDLE MUJAHEDEEN IN A TACIT ACKNOWLEDGEMENT THAT PAKISTAN'S INTELLIGENCE OPERATION MIGHT HAVE ACTED OUTSIDE GOVERNMENT CONTROL MR MAZARI ALSO SAID HE ORDERED THE DIRECTOR GENERAL OF INTERNAL SERVICES INTELLIGENCE LT GEN JAVED NASIR REMOVED FROM OFFICE AND DRUMMED OUT OF THE ARMY SIX MONTHS BEFORE HE WAS DUE TO RETIRE MR MAZARI DIDN'T EXPLICITLY ACCUSE ISI OF BEING INVOLVED IN TERRORIST ACTIVITIES ORIGINATING IN PAKISTAN BUT OTHER OFFICIALS SAID GEN NASIR MIGHT HAVE BEEN UNAWARE OF IMPROPER ACTIVITIES BY HIS FORCE GEN NASIR IS KNOWN AS A BELIEVER IN ISLAMIC CAUSES HIS SUCCESSOR LT GEN JAVED ASHRAF KAZI IS CONSIDERED A MODERATE WITH GEN NASIR GONE MR MAZARI SAID TOMORROW THEY ISI CAN EVEN START DOING THINGS AGAINST TERRORISM DIPLOMATS AND OTHER GOVERNMENT OFFICIALS IN ISLAMABAD SAY THE PRIME MINISTER'S VIEWS ON TERRORISM APPEAR TO REFLECT THE FRUSTRATION OF PAKISTAN'S POWERFUL PRESIDENT GHULAM ISHAQ KHAN MR KHAN WAS SAID TO BE ALARMED THAT THE US HAD CONSIDERED LISTING PAKISTAN AS A TERRORISTSPONSORING STATE IN ITS ANNUAL REPORT ON TERRORISM RELEASED LAST WEEK A TERRORIST STATE WOULD LOSE ALL AID ALTHOUGH PAKISTAN ALREADY HAS LOST MOST US SUPPORT BECAUSE OF ITS NUCLEAR WEAPONS PROGRAM ALTHOUGH IT WASN'T LABELED A TERRORIST STATE PAKISTAN WAS CITED IN THE REPORT ALONG WITH SUDAN FOR LINKS TO TERRORISTS PAKISTAN HAD BEEN CONSIDERED FOR INCLUSION BECAUSE OF ITS REPUTED SUPPORT FOR INSURGENTS IN THE INDIANOCCUPIED REGION OF KASHMIR AND IN THE INDIAN STATE OF PUNJAB PAKISTAN'S CHANCES OF MAKING THE LIST INCREASED WHEN INDIAN OFFICIALS BLAMED ROGUE ELEMENTS OF ISI FOR TRAINING TERRORISTS WHO DETONATED A SERIES OF BOMBS IN BOMBAY KILLING MORE THAN 300 PEOPLE MOREOVER A PAKISTANLINKED GROUP CONNECTED TO THE SUSPECTS IN NEW YORK'S WORLD TRADE CENTER BOMBING SENT A WARNING TO EGYPT OF MORE VIOLENCE AND THE CHIEF SUSPECT IN AN ATTACK ON EMPLOYEES OF THE CENTRAL INTELLIGENCE AGENCY IN VIRGINIA IS THOUGHT TO HAVE FLED TO PAKISTAN THE 64YEAROLD MR MAZARI A LONGTIME POLITICIAN FROM A RICH LANDLORD FAMILY IN PUNJAB CAME INTO OFFICE TWO WEEKS AGO AFTER A CONSTITUTIONAL CONFRONTATION BETWEEN HIS PREDECESSOR FORMER PRIME MINISTER NAWAZ SHARIF AND THE PRESIDENT MR KHAN ON APRIL 18 MR KHAN DISMISSED PAKISTAN'S NATIONAL ASSEMBLY ALONG WITH MR SHARIF'S GOVERNMENT AFTER MR SHARIF TRIED TO CHANGE THE VERY CLAUSE OF THE CONSTITUTION THAT GAVE MR KHAN THE POWER TO DISMISS THE PARLIAMENT NEW ELECTIONS ARE SET FOR JULY 14 AND MR MAZARI A SIGNER OF PAKISTAN'S 1956 CONSTITUTION WAS CHOSEN BY MR KHAN AS CARETAKER PRIME MINISTER HE HAS APPOINTED A COALITION GOVERNMENT THAT INCLUDES MEMBERS OF NEARLY EVERY PARTY EXCEPT MR SHARIF'S AND THE MAIN ISLAMIC FUNDAMENTALIST PARTY THE SPEAKER OF THE NATIONAL ASSEMBLY GOHAR AYUB HAS CHALLENGED THE CONSTITUTIONALITY OF THE PRESIDENT'S ACTION PAKISTAN'S SUPREME COURT WILL BEGIN HEARING ARGUMENTS TOMORROW EITHER WAY PAKISTAN'S NEARTERM POLITICAL FUTURE LOOKS BUMPY A COURT REVERSAL WOULD RESTORE THE PARLIAMENT THOUGH NOT NECESSARILY MR SHARIF'S GOVERNMENT AND PROBABLY GENERATE DEMANDS FOR THE PRESIDENT'S RESIGNATION IF THE COURT UPHOLDS THE DISMISSAL DIPLOMATS AND MANY POLITICIANS FEAR NATIONAL DISTURBANCES THAT COULD DELAY THE JULY 14 ELECTIONS OR EVEN PROVOKE MILITARY INTERVENTION LOOKING CONFIDENT AND RELAXED MR MAZARI PLAYED DOWN THAT POSSIBILITY AND SAID HE HAS ASKED THE ARMY TO SUPERVISE THE JULY ELECTIONS TO PREVENT IRREGULARITIES COMMON IN PAST ELECTIONS I HONESTLY WANT IT TO BE FAIR AND FREE HE SAID 9305070039 930507 HOUSE PANEL CLEARS 504 BILLION PACKAGE OF HEALTH SAVINGS WASHINGTON DEMOCRATS ON THE HOUSE WAYS AND MEANS COMMITTEE PUSHED THROUGH A 504 BILLION PACKAGE OF HEALTHCARE SAVINGS WHILE REBUFFING EARLY REPUBLICAN ATTEMPTS TO STRIP KEY PARTS FROM PRESIDENT CLINTON'S 2421 BILLION TAX PACKAGE THE HEALTHCARE PACKAGE WOULD ACHIEVE ITS BUDGET SAVINGS OVER FIVE YEARS LARGELY BY LIMITING COSTOFLIVING ADJUSTMENTS TO DOCTORS HOSPITALS AND OTHER HEALTHCARE PROVIDERS UNDER THE MEDICARE PROGRAM THE MEDICARE SAVINGS WERE SOUGHT BY THE CLINTON ADMINISTRATION AND CONGRESSIONAL DEMOCRATS AS A DOWN PAYMENT ON THE LARGER SAVINGS EXPECTED UNDER THE WHITE HOUSE'S HEALTHCARE REFORM INITIATIVE DURING THREE HOURS OF CLOSEDDOOR DEBATE REP PETE STARK D CALIF SAID REPUBLICANS ATTEMPTED TO MAKE POLITICAL STATEMENTS BY ATTACKING OTHER ELEMENTS OF THE ADMINISTRATION'S MASSIVE DEFICITREDUCTION INITIATIVE ON PARTYLINE VOTES THE COMMITTEE'S 24 DEMOCRATS REJECTED AMENDMENTS THAT WOULD HAVE KILLED MR CLINTON'S PROPOSAL TO EXPAND THE AMOUNT OF SOCIAL SECURITY BENEFITS SUBJECT TO TAXATION THE INVESTMENT TAX CREDIT AND A BROADBASED ENERGY TAX THE VOTES DON'T INDICATE THE PANEL'S SENTIMENT ON THE TAX ISSUES AS MUCH AS THE DEMOCRATS' UNWILLINGNESS TO LET THE REPUBLICANS MAKE AN ISSUE OF THEM AT THIS STAGE THEY GOT INTO PLAYING GAMES REP STARK SAID OF HIS GOP COLLEAGUES WE'RE IN THERE SLUGGING SAID REP BILL ARCHER OF TEXAS THE PANEL'S RANKING REPUBLICAN REPUBLICANS ARE NOT GOING TO SUPPORT THE LARGEST TAX INCREASE IN THE HISTORY OF THIS COUNTRY 9305070038 930507 LEISURE & ARTS ON SPORTS NCAA IRONY BY FREDERICK C KLEIN WITH NO APPARENT SENSE OF IRONY THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION MADE A COUPLE OF RECENT ANNOUNCEMENTS ONE SEVERAL WEEKS AGO DISCLOSED PLANS FOR A PROGRAM TO DEVELOP WHAT IT CALLED THE LIFE SKILLS OF ATHLETES AT MEMBER SCHOOLS HELPING THEM COPE WITH SUCH PROBLEMS AS COMPETITIVE PRESSURES AND A LACK OF FREE TIME THE OTHER MADE THIS WEEK APPROVED THE ADDITION OF THE ALAMO BOWL TO BE HELD DEC 31 IN SAN ANTONIO TEXAS TO THE COLLEGE FOOTBALL POSTSEASON SCHEDULE IN OTHER WORDS THE NCAA FIRST PROPOSED A PARTIAL CURE FOR SOME OF THE ILLS IT IS CAUSING THEN APPLIED AN EXTRA DOSE OF SAME IN THAT LIGHT ITS OFFER OF AID TO ITS MEMBERS' MINIONS SEEMS AKIN TO A TAVERN OFFERING REMEDIES FOR ALCOHOLISM OR A MUGGER PASSING OUT BANDAIDS TO HIS VICTIMS THE JUXTAPOSITION UNDERSCORED THE PHILOSOPHICAL MUDDLE THAT SURROUNDS BIGTIME COLLEGE ATHLETICS IN THIS LAND THE UNIVERSITIES THAT CONSTITUTE THE NCAA TALK A GOOD GAME OF MAKING THE SPORTSENTERTAINMENT GIANT THEY'VE CREATED SERVE THE INTERESTS OF THE YOUNGSTERS WHO MAKE IT POSSIBLE BUT THEIR GOOD INTENTIONS ARE FREQUENTLY AND QUICKLY STASHED WHEN THE GIANT ROARS FOR NEW INFUSIONS OF CASH NOTHING ILLUSTRATES THIS BETTER THAN THE FOOTBALL BOWL SCENE THE ROSE BOWL IN PASADENA CALIF WAS THE FIRST ON NEW YEAR'S DAY 1902 AND UNTIL 1935 THE ONLY POSTSEASON FOOTBALL COMPETITION FOR COLLEGIANS BEGUN WHEN INTERSECTIONAL CONTESTS WERE RARE IT PROVIDED A WINTERSUNSHINE REWARD FOR ONE PAIR OF EXCELLENT TEAMS THE NUMBER OF BOWL GAMES REMAINED SMALL THROUGH WORLD WAR I BY 1976 THOUGH THE BOWL TOTAL HAD RISEN TO 12 AND BY 1983 IT WAS 16 THE ALAMO BOWL IS NO 19 MEANING THAT 38 TEAMS WILL HAVE POSTSEASON DATES AFTER THIS FALL'S CAMPAIGN WITH THE EXTRA WEEKS OF PRACTICE AND ADDED TRAVEL THAT GO WITH THEM THE IDEA OF RESERVING POSTSEASON PLAY FOR THE EXCELLENT FEW HAS LONG SINCE DIED AND CONFERENCES SCURRY ABOUT SECURING REGULAR BOWL BERTHS FOR THEIR THIRD OR FOURTHPLACE FINISHERS JUST ABOUT EVERY BIGTIME COLLEGE TEAM THAT CAN MUSTER SIX WINS IN ITS 11 REGULARSEASON MATCHES NOW FINDS ITS SCHEDULE EXTENDED TO JAN 1 OR THEREABOUTS THE REASON FOR THE TREND IS MONEY PURE AND SIMPLE DESPITE ANNUAL REVENUE OF 15 MILLION OR MORE MANY UNIVERSITIES SAY THEIR ATHLETICS PROGRAMS ARE RUNNING AT A LOSS AND NEED THE BOWLS' CASH ALONG WITH CERTIFYING THE ALAMO BOWL THE NCAA UPPED TO 750000 FROM 650000 THE MINIMUM AMOUNT BOWL SPONSORS MUST PAY EACH PARTICIPATING SCHOOL SO FOR 15 MILLION THE NCAA WILL DELIVER TWO SQUADS OF STUDENTATHLETES FOR YOUR TOWN'S NEW YEAR'S WEEK PLEASURE THERE'S BEEN INCREASING TALK OF A PLAYOFF SYSTEM TO DETERMINE A BIGSCHOOL NATIONAL FOOTBALL CHAMPION BUT IT'S SURE AS ANYTHING THAT ANY PLAYOFFS WOULD BE IN ADDITION TO RATHER THAN INSTEAD OF THE PRESENT BOWL STRUCTURE WHAT'S HAPPENING IN FOOTBALL ALREADY HAS HAPPENED IN BASKETBALL THE COLLEGES' OTHER SOCALLED REVENUE SPORT PARTICIPATION IN THE MEN'S DIVISION I NATIONAL CHAMPIONSHIP TOURNAMENT HAS INCREASED WITH THE YEARS FROM 16 TO 64 TEAMS WITH SCHOOLS RANGING THE CONTINENT FOR ALMOST THREE WEEKS OF GAMES THE UPSHOT IN BOTH SPORTS HAS BEEN THE SAME MORE PRESSURE TO WIN TO BRING IN THE DOLLARS THAT COME WITH BOWL OR TOURNAMENT BIDS MORE CLASS TIME LOST TO GAMES AND TRAVEL IN SEARCH OF A COMPETITIVE EDGE COLLEGES HAVE BEEN RECRUITING MARGINALLY QUALIFIED STUDENTS TO MAN THEIR TEAMS AND IT IS UPON THEM THAT THE TIME BURDENS AND OTHER DISTRACTIONS OF BIGTIME SPORTS FALL HARDEST EVIDENCE THAT MANY OF THESE YOUTHS HAVE BEEN SEDUCED AND THEN ABANDONED IN THE REAL WORLD WITH NO EDUCATION WORTH THE NAME HAS CAUSED RED FACES IN ACADEME AND FITFUL MOVES TOWARD REFORM THE ANNOUNCED LIFESKILLS PROGRAM IS ONE OF THESE UNDER THE SUPERVISION OF THE NCAA FOUNDATION SET UP TO CARRY OUT PROJECTS NOT DIRECTLY TIED TO SPORTS THE PROGRAM AIMS AT PROVIDING MEMBER SCHOOLS WITH MATERIALS TO INSTRUCT ATHLETES IN HOW TO GET ALONG ON CAMPUS AND BEYOND SUBJECT HEADINGS ARE NEBULOUS FUNDAMENTAL VALUES ACADEMIC ENHANCEMENT INCLUDING TIME MANAGEMENT PHYSICAL DEVELOPMENT SEXUALBEHAVIOR GUIDELINES AND DRUG EDUCATION GO HERE AND CAREER PLANNING ARE A FEW BUT BETTY B NORRIE THE FOUNDATION'S PROGRAM COORDINATOR SAYS THEY'LL BE FLESHED OUT IN TIME FOR PILOT PROGRAMS TO BEGIN ON SEVERAL CAMPUSES IN THE FALL OF 1994 THE MATERIALS WILL BE PRESENTABLE IN A FORCREDIT COURSE OR IN A LESS FORMAL MANNER SOME SCHOOLS ALREADY OFFER SUCH INSTRUCTION NORRIE SAYS THE NEED FOR THIS PROGRAM HAS LONG BEEN APPARENT SHE CONTINUES MANY ATHLETES COME TO COLLEGE UNPREPARED FOR WHAT THEY FIND THEY'VE BEEN IDOLIZED AND PAMPERED SINCE AGE EIGHT OR 10 AND HAVE VERY LITTLE IDEA HOW TO RELATE TO OTHER STUDENTS OR DO WHAT'S NECESSARY TO SUCCEED OUTSIDE OF THEIR SPORTS THIS SHOULD MAKE UP FOR SOME OF THEIR LACKS ONE CAN QUESTION WHETHER COLLEGE ATHLETES ALREADY STRAPPED FOR TIME NEED TO BE SADDLED WITH SOMETHING ELSE THAT WILL TAKE THEM FROM THEIR REGULAR SCHOOLWORK ONE CAN WONDER WHETHER FUNDAMENTAL VALUES CAN BE INSTILLED IN A CLASS THAT MEETS A COUPLE TIMES A WEEK AND TOUCHES ON MANY OTHER THINGS BESIDES BUT EVEN GRANTING THAT LIFESKILLS INSTRUCTION IS A GOOD IDEA THE BIGGEST QUESTION REMAINS IT'S WHY COLLEGES AREN'T ADDRESSING THE CORE OF THEIR STUDENTATHLETES' PROBLEMS THEIR BLOATED OVERHEATED SPORTS PROGRAMS INSTEAD OF NIBBLING AT THE EDGES CUTTING INSTEAD OF RAISING THE NUMBER OF FOOTBALL BOWL GAMES WOULD BE A START 9305070037 930507 CREDIT MARKETS LONGTERM PRICES DRIFT LOWER AS INVESTORS AWAIT TODAY'S REPORT ON APRIL EMPLOYMENT SITUATION BY TOM HERMAN AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LONGTERM BOND PRICES DRIFTED SLIGHTLY LOWER YESTERDAY IN SLUGGISH TRADING AS INVESTORS SAT BACK TO AWAIT TODAY'S REPORT ON THE NATION'S EMPLOYMENT PICTURE THE TREASURY'S BENCHMARK 30YEAR BONDS FELL ABOUT 1/4 POINT OR ABOUT 250 FOR EACH 1000 FACE AMOUNT TO 104 2/32 THEIR YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE ROSE TO 680 FROM 678 INTERMEDIATETERM NOTES WERE MIXED WITH PRICES OF 10YEAR NOTES RISING VERY SLIGHTLY BUT SEVENYEAR NOTES SLIPPING A BIT RATES ON SHORTTERM TREASURY BILLS DECLINED MUNICIPAL BOND PRICES HARDLY BUDGED ALL DAY CORPORATES WERE MIXED AND MORTGAGE SECURITIES GENERALLY INCHED HIGHER THE BOND MARKET HAS THUS REGISTERED VERY LITTLE REACTION TO THE TREASURY'S DECISION ANNOUNCED WEDNESDAY TO SLASH ITS SALES OF LONGTERM BONDS AND RELY MORE ON SHORTERTERM BORROWING THE TREASURY TRYING TO CUT ITS MASSIVE BORROWING COSTS WILL SELL ABOUT 45 FEWER 30YEAR BONDS NEXT YEAR THAN IT DID IN 1992 ASKED WHY SUCH A HUGE DROP IN LONGTERM BORROWING HAS PRODUCED SO LITTLE MARKET IMPACT TRADERS OFFER TWO EXPLANATIONS FIRST THEY ARE FOCUSING ON A TIDAL WAVE OF GOVERNMENT BORROWING THAT WILL HIT THE BOND MARKETS NEXT WEEK SECOND THEY ARE LEERY OF LONGTERM BONDS AHEAD OF TODAY'S RELEASE OF APRIL'S EMPLOYMENT DATA THAT COULD CHANGE INVESTORS' VIEWS OF THE ECONOMY AND INFLATION WE HAVE TO BID ON A LOT OF STUFF NEXT WEEK AND THE MARKET RIGHT NOW IS NEAR HISTORIC HIGHS SAID JOEL KAZIS MANAGING DIRECTOR AT UBS SECURITIES ALL THIS TREASURY SUPPLY REALLY IS AN ISSUE HE SAID MR KAZIS EXPECTS BOND PRICES TO DECLINE FURTHER UNDER THE WEIGHT OF ALL THE NEW GOVERNMENT BILLS NOTES AND BONDS THAT ARE ABOUT TO BE SOLD NEXT WEEK THE TREASURY WILL SELL 35 BILLION OF NOTES AND BONDS THAT WILL BE IN ADDITION TO ITS REGULAR WEEKLY AUCTION OF SHORTTERM BILLS MONDAY PLUS THE SALE OF 129DAY CASH MANAGEMENT BILLS THURSDAY ECONOMISTS EXPECT TODAY'S EMPLOYMENT REPORT TO SHOW A STRONGER ECONOMY THAN IN MARCH THEY SAY THE LABOR DEPARTMENT IS LIKELY TO REPORT AN INCREASE OF ABOUT 160000 IN THE NUMBER OF WORKERS ON NONFARM PAYROLLS WITH THE UNEMPLOYMENT RATE REMAINING UNCHANGED AT 7 TRADERS SAY SIGNS OF STRONGER ECONOMIC GROWTH COULD HEIGHTEN INVESTOR FEARS ABOUT INFLATION AND LEAD TO HIGHER INTEREST RATES TRADERS ALSO ARE STRUGGLING TO FIGURE OUT HOW THE TREASURY'S DECISION TO SELL MORE SHORTTERM DEBT MAY AFFECT INTEREST RATES OVER THE LONG HAUL SEVERAL SAID THE TREASURY'S CUTBACK IN SALES OF 30YEAR BONDS WILL BE MORE GRADUAL THAN THEY HAD ANTICIPATED EARLIER THIS WEEK WHICH THEY SAY HELPS EXPLAIN THE MARKET'S MUTED REACTION THUS FAR SEVENYEAR NOTES WHICH WILL NO LONGER BE ISSUED BY THE GOVERNMENT UNDER ITS NEW STRATEGY HAVE SLIPPED IN POPULARITY SOME TRADERS HAD THOUGHT THE ELIMINATION OF NEW SEVENYEAR NOTE SALES WOULD MAKE EXISTING NOTES MORE VALUABLE SO FAR HOWEVER THE OPPOSITE HAS HAPPENED YESTERDAY SEVENYEAR NOTES FELL TO 99 29/32 FROM 100 3/32 AS THEIR YIELD ROSE TO 551 FROM 547 SOME TRADERS SAID THE GOVERNMENT'S DECISION TO ELIMINATE NEW SALES MEANS LESS LIQUIDITY FOR THIS ISSUE THUS MAKING THE NOTES LESS ATTRACTIVE OVERALL THE TREASURY'S PLAN HAS DRAWN MIXED REVIEWS MANY WALL STREET BOND TRADERS ARGUE THAT THE MOVE COULD BACKFIRE AND WIND UP COSTING THE TREASURY MONEY WHATEVER THE CASE MANY CORPORATE TREASURERS ARE TAKING THE OPPOSITE APPROACH FROM THE TREASURY COMPANIES HAVE BEEN ISSUING LARGE AMOUNTS OF NEW LONGTERM BONDS TO TAKE ADVANTAGE OF TODAY'S HISTORICALLY LOW LONGTERM BORROWING COSTS AND TO REDUCE THEIR DEPENDENCE ON SHORTTERM DEBT ONE OF THOSE COMPANIES IS AMBAC INC THE HOLDING COMPANY FOR A LARGE MUNICIPALBOND INSURER AMBAC INDEMNITY CORP AND OTHER COMPANIES LONGTERM RATES LOOK ATTRACTIVE TO US NOW SAID PHILLIP LASSITER CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER THERE'S AN APPETITE FOR THIS PAPER AMONG INVESTORS AND IT'S A BETTER FORM OF MANAGING YOUR CAPITAL STRUCTURE THAN SELLING SHORTERTERM DEBT AMBAC THIS WEEK SOLD 75 MILLION OF 75 DEBENTURES DUE IN 30 YEARS THE DEBENTURES WHICH ARE NONCALLABLE WERE PRICED AT 99171 TO YIELD 757 OR 078 PERCENTAGE POINT ABOVE THE YIELD ON 30YEAR TREASURY BONDS MORGAN STANLEY & CO WAS THE UNDERWRITER THE DEBENTURES ARE RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAPLUS BY STANDARD & POOR'S CORP TRANSPORTACION MARITIMA MEXICANA SA DE CV MEXICO'S LARGEST TRANSPORTATION COMPANY MADE ITS FIRST PUBLICLY REGISTERED DOLLARDENOMINATED DEBT OFFERING IN THE US MEANWHILE SEASONED ISSUES ENDED MIXED IN MOSTLY LIGHT TRADING INVESTMENTGRADE ISSUES ENDED FLAT TO 1/8 POINT LOWER WHILE JUNK BONDS FINISHED LITTLE CHANGED COMPANIES OFFERED 17 BILLION OF ISSUES THEY INCLUDED DOLE FOOD CO THE FRUIT VEGETABLE AND REAL ESTATE CONCERN AND ASSOCIATES CORP A FORD MOTOR CO UNIT DEMAND WAS SAID TO BE STRONG FOR TMM'S OFFERING LATIN AMERICAN COMPANIES HAVE RAISED DOLLARS BEFORE IN THE US PRIVATE PLACEMENT MARKET BUT TMM IS THE FIRST LATIN AMERICAN COMPANY TO PLACE A PUBLIC YANKEE DEAL SAY INVESTMENT BANKERS INVOLVED YANKEES ARE DOLLARDENOMINATED BONDS SOLD IN THE US BY FOREIGN COMPANIES OR GOVERNMENTS THE TERMS OF THE TRANSPORTACION MARITIMA MEXICANA OFFERING CONSISTED OF 200 MILLION OF 10YEAR NOTES PRICED AS 925 SECURITIES TO YIELD 9285 OR 3375 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE THE ISSUE NONCALLABLE FOR FIVE YEARS WAS INCREASED IN SIZE FROM A PLANNED 150 MILLION AFTER THE BORROWER AGREED TO PRICE THE ISSUE LESS AGGRESSIVELY THAN EXPECTED INVESTORS SAID RATED BA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO MUNICIPAL BOND ACTIVITY SLOWED TO A TRICKLE YESTERDAY AHEAD OF TODAY'S EMPLOYMENT REPORT PRICES OF SECONDARY ISSUES WERE LITTLE CHANGED AS OF LATE YESTERDAY DENVER'S 675 AIRPORT REVENUE BONDS DUE IN 2022 WERE UNCHANGED AT 99 1/2 TO YIELD 676 THE MASSACHUSETTS STATE WATER RESERVE AUTHORITY'S 5 SERIES B REFUNDING BONDS DUE IN 2013 WERE UP 1/8 POINT TO 88 1/8 TO YIELD 584 IN THE NEWISSUE ARENA THERE WAS ONLY 300 MILLION OF NEW DEBT COMPARED WITH THE NEARLY 3 BILLION OF NEW ISSUES DURING THE TWO PRIOR SESSIONS AMONG YESTERDAY'S NEW ISSUES WAS A 211 MILLION COMPETITIVE SALE OF BONDS BY THE CHICAGO SCHOOL FINANCE AUTHORITY THE UNLIMITED TAX GENERAL OBLIGATION SCHOOL ASSISTANT REFUNDING BONDS WERE WON BY A GROUP LED BY JP MORGAN SECURITIES THEY REPRICED THE TRIPLEARATED BONDS TO YIELD FROM 260 IN 1994 TO 560 IN 2009 THE BONDS ARE INSURED BY FINANCIAL GUARANTY INSURANCE CO PRICES OF MORTGAGE ISSUES ENDED SLIGHTLY HIGHER IN THE PRIMARY REAL ESTATE MORTGAGE INVESTMENT CONDUIT MARKET NO NEW ISSUES WERE ANNOUNCED BUT SOURCES SAY THERE ARE AT LEAST THREE CONVENTIONAL DEALS BEING TALKED ABOUT IN SECONDARY TRADING THE CURRENT COUPON OF ALL THREE AGENCIES ENDED THE SESSION 2/32 HIGHER GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ENDED AT 101 1/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ENDED AT 101 3/8 AND 101 7/32 RESPECTIVELY 9305070035 930507 WHO'S NEWS INGERSOLLRAND CO INGERSOLLRAND CO WOODCLIFF LAKE NJ THIS MANUFACTURER OF INDUSTRIAL MACHINES AND CONSTRUCTION EQUIPMENT NAMED THOMAS F MCBRIDE 57 YEARS OLD SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FILLING A LONGVACANT POST HE HAD BEEN SENIOR VICE PRESIDENT AND COMPTROLLER 9305070034 930507 WHO'S NEWS CHRYSLER SELECTS GARY C VALADE FOR FINANCE JOB BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP NAMED ITS VICE PRESIDENT FOR PERSONNEL AND ADMINISTRATION GARY C VALADE EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR VALADE IS A 50YEAROLD DETROIT NATIVE AND A FORMER CONTROLLER AT CHRYSLER WHO HAS SPENT ALMOST HIS ENTIRE CAREER IN THE AUTO MAKER'S FINANCE DEPARTMENT HE FILLS A POSITION LEFT VACANT BY JEROME B YORK WHO LEFT THE AUTO MAKER THIS WEEK TO BECOME EXECUTIVE VICE PRESIDENT FOR FINANCE AT INTERNATIONAL BUSINESS MACHINES CORP AS PART OF HIS PROMOTION MR VALADE WAS NAMED TO CHRYLSER'S FOURMAN OFFICE OF THE CHAIRMAN A POSITION THAT ALSO HAD BEEN HELD BY MR YORK IN A RELATED MOVE THOMAS P CAPO CHRYSLER'S TREASURER WHO WAS MENTIONED AS A POSSIBLE SUCCESSOR TO MR YORK WAS ELECTED A COMPANY VICE PRESIDENT MR CAPO 42 WILL CONTINUE TO HANDLE THE AUTO MAKER'S RELATIONS WITH WALL STREET THE SELECTION OF MR VALADE ISN'T A SURPRISE IT IS THE FIRST MAJOR APPOINTMENT MADE BY ROBERT J EATON CHRYSLER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SINCE MR EATON LEFT GENERAL MOTORS CORP FOR CHRYSLER LAST YEAR MR EATON WHO HAS MADE BOLSTERING THE AUTO MAKER'S FINANCIAL POSITION HIS PERSONAL PRIORITY SAID CHRYSLER HAS TREMENDOUS BENCH STRENGTH IN OUR FINANCIAL ORGANIZATION GARY HAS BROAD EXPERIENCE IN THE CONTROLLER'S FUNCTION AND WILL CONTINUE OUR EMPHASIS ON COST CONTAINMENT WHILE TOM CAPO WILL CONTINUE WORKING WITH WALL STREET THE BANKING COMMUNITY AND OUR CREDIT OPERATIONS TO FURTHER IMPROVE OUR BALANCE SHEET MR EATON SAID MR VALADE TAKES CONTROL OF CHRYSLER'S FINANCIAL OPERATIONS AT A TIME WHEN THE AUTO MAKER HAS CLEAR FINANCIAL GOALS MR EATON HAS SAID THAT IN ORDER TO BRING LONGTERM STABILITY TO A COMPANY THAT HAS BEEN MORE CYCLICAL THAN MOST CHRYLSER MUST REDUCE ITS 39 BILLION UNFUNDED PENSION LIABILITY BUILD UP A CUSHION OF 5 BILLION IN CASH TO WEATHER THE NEXT RECESSION AND RESTORE ITS CREDIT RATING TO INVESTMENT GRADE A LINE OF HOT NEW PRODUCTS IS HELPING CHRYSLER BEEF UP ITS BALANCE SHEETS IN THE PAST YEAR CHRYSLER HAS RAISED PRICES THREE TIMES IN ORDER TO PUMP PROFITS INTO THE COMPANY AND IN FEBRUARY IT RAISED SLIGHTLY MORE THAN 2 BILLION THROUGH THE SALE OF 52 MILLION SHARES CHRYSLER HAS SAID MOST OF THOSE FUNDS WOULD GO TOWARD THE UNFUNDED PENSION LIABILITY JAMES P HOLDEN 41 A CAREER SALES AND MARKETING EXECUTIVE WAS ELECTED A VICE PRESIDENT AND WILL SUCCEED MR VALADE IN HIS PERSONNEL POST MR VALADE BEGAN HIS BUSINESS CAREER AS A MANAGEMENT TRAINEE IN CHRYSLER'S CONTROLLER'S OFFICE AFTER LEAVING MICHIGAN STATE UNIVERSITY WHERE HE EARNED AN ENGINEERING DEGREE IN 1966 AND A MASTER OF BUSINESS ADMINISTRATION IN 1968 AFTER A VARIETY OF FINANCE AND CONTROLLER POSTS HE SERVED AS CHRYSLER'S CONTROLLER FROM 1990 THROUGH THE END OF 1991 WHEN HE WAS NAMED VICE PRESIDENT FOR PERSONNEL MR CAPO WILL REPORT DIRECTLY TO MR VALADE BUT AS PART OF HIS PROMOTION TO VICE PRESIDENT MR CAPO WAS GIVEN TWO AREAS OF RESPONSIBILITY THAT PREVIOUSLY WERE UNDER THE PURVIEW OF THE CHIEF FINANCIAL OFFICER CHRYSLER FINANCIAL CORP WILL REPORT TO MR CAPO AS WILL CHRYSLER'S TAX OFFICE MR CAPO WAS GRADUATED BY THE UNIVERSITY OF DETROIT IN 1973 HE EARNED AN MBA THERE IN 1975 AND A MASTER'S DEGREE IN INTERNATIONAL ECONOMICS IN 1980 9305070033 930507 MARKETING RJR RETREATS FROM PRICE WAR OVER CIGARETTES BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL RJ REYNOLDS BACKING DOWN FROM A LOOMING PRICE WAR WITH RIVAL PHILIP MORRIS COS IS EFFECTIVELY RAISING THE PRICE OF ITS CHEAPEST CIGARETTES RJ REYNOLDS TOBACCO CO THE TOBACCO UNIT OF RJR NABISCO HOLDINGS CORP TOLD ITS LARGE DISTRIBUTORS YESTERDAY THAT IT PLANNED TO CANCEL A ONEMONTHOLD PROMOTION ON ITS CHEAPEST CIGARETTES THE MONARCH BRAND AS A RESULT PRICES OF THE CIGARETTES WILL BE RAISED BY ABOUT A DIME TO 140 A PACK THE PRICE LEVEL BEFORE THE PROMOTION IT REPRESENTS A SYMBOLIC GESTURE BY RJR THAT IT DOES NOT WANT A PRICE WAR SAID GARY D BLACK AN ANALYST WITH SANFORD C BERNSTEIN MR BLACK CALLED THE RJR PRICE CHANGE THE FIRST PIECE OF POSITIVE NEWS SINCE MARLBORO FRIDAY THE DAY PHILIP MORRIS FIRED THE FIRST SALVO BY ANNOUNCING IT PLANNED TO SLASH THE PRICE OF MARLBORO BY 40 CENTS A PACK FOR A LIMITED TIME IN ANNOUNCING THE MARLBORO PRICE CUTS APRIL 2 PHILIP MORRIS EXECUTIVES IN PART BLAMED RJ REYNOLD'S MONARCH PROMOTION WHICH BEGAN THAT MONTH FOR HURTING THE INDUSTRY'S PROFITABILITY IN ADDITION TO THE MARLBORO PRICE CUTS WHICH BEGIN IN EARNEST NEXT MONTH PHILIP MORRIS HAS BEEN AGGRESSIVELY MARKETING ITS DEEP DISCOUNT BRAND BASIC WITH 2FOR1 PROMOTIONS RJ REYNOLDS MATCHED THE MARLBORO PRICE CUTS BY ANNOUNCING PROMOTIONS ON ITS CAMEL AND WINSTON BRANDS THE COMPANY VOWED NOT TO GIVE UP ANY MARKET SHARE YESTERDAY RJ REYNOLDS DENIED THAT IT WAS RETREATING THERE IS NO CRYING UNCLE SAID A SPOKESWOMAN SHE SAID THE MONARCH PROGRAM WAS SIMPLY BEING DISCONTINUED AT THE END OF NEXT MONTH AS PLANNED AND WAS NEVER CONSIDERED A PERMANENT PRICE CUT BY RJR RJR ALSO HELD OUT THE THREAT OF FRESH PRICE CUTS ON ITS CHEAP CIGARETTES THE LETTER ANNOUNCING THE NEW MONARCH PRICE TO DISTRIBUTORS CONCLUDED WE WILL OF COURSE KEEP MONARCH COMPETITIVE RESPONDING AS NECESSARY TO PROGRAMS OFFERED BY COMPETITIVE LOWESTTIER BRANDS RJR DENIES THAT IT LED THE WAY IN AGGRESSIVE PRICE CUTS IN CHEAP CIGARETTES ROY BURRY AN ANALYST WITH KIDDER PEABODY & CO SAID THE PRICING MOVE BY RJ REYNOLDS SHOULDN'T BE VIEWED AS AN END TO HOSTILITIES IT DOESN'T AFFECT FULLPRICE BRANDS SUCH AS MARLBORO AND WINSTON AND IT ISN'T CLEAR IF PHILIP MORRIS AND THE SMALLER COMPANIES SUCH AS BROWN & WILLIAMSON TOBACCO CORP A UNIT OF BA T INDUSTRIES PLC AND AMERICAN BRANDS INC WILL MATCH THE INCREASES OR KEEP FIGHTING FOR MARKET SHARE PHILIP MORRIS DECLINED TO COMMENT AFTER A 56 DROP IN MARLBORO SHIPMENTS LAST YEAR PHILIP MORRIS IS ATTEMPTING TO LURE SMOKERS BACK TO ITS BESTSELLING BRAND WITH DISCOUNTS THAT NARROW THE PRICE GAP BETWEEN MARLBOROS AND CHEAP CIGARETTES BUT EVEN RJR'S MOVE ON MONARCH LEAVES A 70CENT GAP BETWEEN DISCOUNT BRANDS AND FULLPRICED CIGARETTES ANALYSTS SAY THAT GAP IS STILL TOO LARGE TO WIN BACK SMOKERS WITHOUT THE 40CENTAPACK MARLBORO DISCOUNT PHILIP MORRIS MAINTAINS THE MARLBORO PRICE CUTS ARE TEMPORARY BUT MANY ANALYSTS AND TOBACCO DISTRIBUTORS ARE CONVINCED THE COMPANY WILL HAVE GREAT DIFFICULTY RAISING THE PRICE AGAIN AS A RESULT THE PHILIP MORRIS ANNOUNCEMENT HAS ROILED PROFIT EXPECTATIONS FOR THE TOBACCO INDUSTRY KNOCKING 26 OFF THE VALUE OF PHILIP MORRIS'S STOCK LAST MONTH PHILIP MORRIS CLOSED AT 49125 UP 1 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY WORD OF RJR'S PRICING ACTION CIRCULATED AFTER THE STOCK MARKET CLOSED RJR'S STOCK ENDED AT 5625 UP 125 CENTS IN COMPOSITE TRADING ON THE BIG BOARD 9305070032 930507 IF YOU REALLY WANT TO BOOST RETURNS TRY GOING IT ALONE BY ROBERT MCGOUGH MUTUAL FUND INVESTORS CAN SAVE MONEY AND IMPROVE RETURNS BY PICKING THEIR OWN MUTUAL FUNDS AND BUYING THEM WITHOUT PAYING A LOAD OR SALES CHARGE BUT INVESTING ON ONE'S OWN DOES HAVE ITS PITFALLS SOME DOITYOURSELFERS INVEST FOR THEIR RETIREMENT IN 25 YEARS BY LOADING UP ON MONEY FUNDS OR SHORTTERM BOND FUNDS THAT DON'T EVEN KEEP UP WITH INFLATION OTHERS SAVE FOR NEXT YEAR'S HOUSE PURCHASE IN RISKY AGGRESSIVEGROWTH STOCK FUNDS AND FUND INVESTORS HAVE A SAD HISTORY OF PILING INTO MARKETS AS THEY PEAK OR BAILING OUT AT THE BOTTOM BUT FOR PEOPLE WHO KNOW THE BASICS OF INVESTINGWHO KNOW HOW TO MATCH RISKS WITH THE TIME FRAME FOR THEIR PLANS AND WHO KNOW A FEW FUNDAMENTALS ABOUT WHAT TO LOOK FOR IN DIFFERENT TYPES OF FUNDS SAVING ON SALES CHARGES CAN MAKE A REAL DIFFERENCE IN RETURNS THOSE DIFFERENCES CAN MATTER OVER PERIODS AS LONG AS 10 YEARS FUND MANAGERS UNAFFILIATED WITH EITHER BROKERS OR BANKS SELL TO THE PUBLIC IN TWO WAYS THROUGH BROKERS CHARGING LOADS OR DIRECTLY TO THE PUBLIC CHARGING LITTLE OR NO LOAD IN A STUDY BY MORNINGSTAR INC BOTH THE UNAFFILIATED LOAD FUNDS AND THE DIRECT MARKETERS TURNED IN IDENTICAL 1252 ANNUAL TOTAL RETURNS IN THE 10 YEARS THROUGH MAR 31 TOTAL RETURN INCLUDES BOTH PRICE CHANGE AND REINVESTED DIVIDENDS AFTER SUBTRACTING LOADS HOWEVER THE DIRECT MARKETERS ENDED UP MAKING HALF A PERCENTAGE POINT MORE IN RETURNS PER YEAR THAN THEIR LOAD COMPETITORS THE DIRECTMARKETED FUNDS HAD ANNUAL GAINS OF 1248 COMPARED WITH 1193 FOR THE LOAD FUNDS HALF A POINT EXTRA A YEAR MAY NOT SOUND LIKE MUCH BUT OVER 10 YEARS IT WOULD MEAN 1550 MORE ON AN INITIAL 10000 INVESTMENT THERE IS NO STATISTICAL PROOF THAT LOAD FUNDS PERFORM BETTER THAN NOLOADS SAYS ALBERT COLES PRESIDENT OF FINANCIAL DESIGN AN INVESTMENT ADVISORY FIRM IN LARKSPUR CALIF BECAUSE LOADS GET DEDUCTED OUT OF THE AMOUNT INVESTED IN A FUND YOU'RE GOING TO BE STARTING BEHIND THE STARTING LINE IF YOU BUY A LOAD FUND HE SAYS SOME LOAD FUNDS OF COURSE HAVE PERFORMED SO WELL THAT IN RETROSPECT THEY WERE WELL WORTH A SALES CHARGE BUT WILL THEY BE WORTH THEIR SALES CHARGE IN THE FUTURE THE WEIGHT OF ACADEMIC RESEARCH IS THAT PAST PERFORMANCE IS AT BEST A WEAK PREDICTOR OF THE FUTURE THE CASE FOR BUYING NOLOAD BOND FUNDS IS EVEN CLEARER THAN FOR STOCK FUNDS ACCORDING TO THE MORNINGSTAR STUDY BOND FUNDS SOLD DIRECTLY BY MANAGERS CHARGING LITTLE OR NO LOAD CONSISTENTLY BEAT OTHER TYPES OF BOND FUNDS IN THE THREE FIVE AND 10 YEARS THROUGH MARCH 31 AFTER SUBTRACTING ALL LOADS THAT REMAINED TRUE EVEN THOUGH LOAD FUNDS TURNED IN SLIGHTLY BETTER PERFORMANCE BEFORE SUBTRACTING SALES CHARGES THAN THE NOLOADS IN THE FULL 10YEAR PERIOD WHO RUNS THE BEST NOLOAD AND LOWLOAD FUNDS THAT DEPENDS ON THE TIME PERIOD YOU'RE MEASURING AND THE LEADERS AND LAGGARDS TEND TO COME FROM SMALL GROUPS OF MUTUAL FUNDS WHICH CAN MORE EASILY TURN IN VERY HIGH OR VERY LOW RETURNS IN THE FIVE YEARS THROUGH MARCH 31 THE BESTPERFORMING DIRECTMARKETED STOCK FUNDS CAME FROM JANUS GROUP WHOSE THREE FUNDS IN THAT PERIOD HAD A TOTAL RETURN OF 2222 A YEAR ACCORDING TO MORNINGSTAR THE LAGGARD WAS PRUDENT SPECULATOR GROUP WHOSE SINGLE FUND IN THAT PERIOD LOST 076 A YEAR AMONG BOND FUNDS BERWYN GROUP HAS THE BEST GROUP RESULT AS ITS SINGLE FUND GAINED 1316 IN THE FIVE YEARS AND PERMANENT PORTFOLIO FAMILY OF FUNDS BROUGHT UP THE REAR AS ITS SINGLE BOND FUND IN THE PERIOD WHICH INVESTS IN LOWYIELD TREASURY BILLS GOT ONLY A 579 ANNUAL GAIN IN FIVE YEARS 9305070031 930507 TECHNOLOGY & HEALTH MEDCO RESEARCH SUES JAPAN PARTNER OVER HEART DRUG BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL MEDCO RESEARCH CO CHARGED ITS PARTNER JAPAN'S FUJISAWA PHARMACEUTICAL CO WITH BREACH OF CONTRACT AND FRAUD IN A 345 MILLION LAWSUIT OVER MEDCO'S DRUG INTENDED AS AN ALTERNATIVE TO TREADMILL TESTS FOR DETECTION OF HEART DISEASE MEDCO CLAIMS IN EFFECT THAT THE FOOD AND DRUG ADMINISTRATION HASN'T APPROVED THE NEW DRUG FOR COMMERCIAL SALE BECAUSE FUJISAWA IS UNDER INVESTIGATION BY THE AGENCY FOR WRONGFUL CONDUCT MEDCO DEVELOPED THE DRUG AND HAS GRANTED FUJISAWA RIGHTS TO MANUFACTURE AND MARKET IT IN THE US AND CANADA A SPOKESWOMAN FOR FUJISAWA'S US ARM IN DEERFIELD ILL DENIED THE ALLEGATIONS AND SAID THE FDA HASN'T TOLD FUJISAWA THAT IT IS UNDER INVESTIGATION IN 1990 FUJISAWA VOLUNTARILY BEGAN A VALIDITY ASSESSMENT PROCESS TO VERIFY THAT DRUG APPLICATIONS FILED UNDER PREVIOUS MANAGEMENT WERE IN ORDER SHE SAID FDA OFFICIALS DIDN'T RETURN A CALL FOR COMMENT MEDCO RECENTLY ANNOUNCED THAT IT WAS UNILATERALLY TERMINATING ITS LICENSE AGREEMENT WITH FUJISAWA AFTER SEVERAL MONTHS OF UNSUCCESSFUL NEGOTIATIONS TO RESOLVE THEIR DIFFERENCES AT THE SAME TIME MEDCO SAID IT IS IN TALKS WITH ANOTHER DRUG COMPANY TO MANUFACTURE ADENOSCAN IN RESPONSE FUJISAWA FILED A REQUEST WITH THE SAME FEDERAL COURT IN CHICAGO SEEKING A DECLARATION THAT IT HASN'T BREACHED THE MEDCO AGREEMENT FUJISAWA INTENDS TO AGGRESSIVELY ENFORCE ITS INTELLECTUAL PROPERTY AND CONTRACTUAL RIGHTS UNDER ALL AGREEMENTS WITH MEDCO SAID GARY P SCHMIDT VICE PRESIDENT AND GENERAL COUNSEL ANALYSTS SAID THAT MEDCO HAS BEEN EMBARRASSED AND FRUSTRATED BY ITS FAILURE SO FAR TO GET FDA APPROVAL FOR ADENOSCAN WHICH IS CRITICAL TO THE COMPANY'S FUTURE MEDCO AFTER FILING ITS APPLICATION FOR ADENOSCAN IN FEBRUARY 1990 HAD EXPECTED THE GREEN LIGHT TO COME SOMETIME LAST YEAR SAID PATRICIA LEA AN ANALYST AT VECTOR SECURITIES INC IN CHICAGO IT'S UNLIKELY THAT THE FDA WOULD GRANT APPROVAL FOR ADENOSCAN AS LONG AS THE PLANT IN WHICH THE DRUG WOULD BE MADE HAS GOOD MANUFACTURING PRACTICE PROBLEMS MS LEA SAID MEDCO KNEW THAT FUJISAWA'S GRAND ISLAND NY PLANT HAD PROBLEMS UNDER PREVIOUS MANAGEMENT BUT THOUGHT UNTIL RECENTLY THAT THOSE PROBLEMS WERE PRETTY MUCH STRAIGHTENED OUT SHE SAID THREE YEARS AGO FUJISAWA PURCHASED LYPHOMED INC A SMALL DRUG MAKER BEST KNOWN FOR ITS PENTAMIDINE AIDSTREATMENT DRUG LYPHOMED'S STOCK HAD ALREADY FALLEN IN THE WAKE OF SEVERE PROBLEMS WITH FEDERAL REGULATORS OVER QUALITY CONTROL THE FUJISAWA SPOKESWOMAN SAID THE COMPANY IS STILL LOCKED IN LITIGATION WITH LYPHOMED'S FORMER OWNERS MEDCO'S LICENSE AGREEMENT WAS WITH LYPHOMED IN 1988 BEFORE IT WAS ACQUIRED BY FUJISAWA LYPHOMED AGREED TO PAY MEDCO A ROYALTY OF 25 FOR ALL SALES AFTER CERTAIN EXPENSES MEDCO SAYS THE CONTRACT ALSO REQUIRED THE LICENSEE TO BEGIN SALE OF ADENOSCAN WITHIN SIX MONTHS AFTER IT RECEIVED GOVERNMENT APPROVAL THE AGREEMENT ALSO COVERED ANOTHER MEDCO PRODUCT ADENOCARD WHICH ISN'T INVOLVED IN THE CURRENT DISPUTE THE CANADIAN GOVERNMENT APPROVED COMMERCIAL SALE OF ADENOSCAN IN OCTOBER BUT IT CAN'T BE SOLD THERE UNTIL US AUTHORITIES GRANT FUJISAWA AN EXPORT LICENSE MEDCO SAID ITS DECLARATION THAT THE LICENSE AGREEMENT IS NULL AND VOID IS BASED IN PART ON FUJISAWA'S FAILURE TO BEGIN SELLING THE DRUG IN CANADA 9305070030 930507 MEDIA TBS 2 HOLDERS SAID TO SUSPEND REVAMP TALKS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL TURNER BROADCASTING SYSTEM INC AND ITS TWO MAJOR SHAREHOLDERS HAVE TABLED TALKS ABOUT RESTRUCTURING THE COMPANY LARGELY BECAUSE OF REGULATORY UNCERTAINTIES THAT WON'T BE RESOLVED UNTIL THE AUTUMN PEOPLE CLOSE TO TURNER BROADCASTING SAID TURNER BROADCASTING TIME WARNER INC AND TELECOMMUNICATIONS INC HAVE BEEN TRYING TO FIGURE OUT A WAY TO DIVIDE UP THE COMPANY AND GIVE ITS CHAIRMAN TED TURNER MORE FREEDOM TO EXPAND IN THE MEDIA BUSINESS THE TALKS BEGAN IN MARCH BY THE FALL THE FEDERAL COMMUNICATIONS COMMISSION IS EXPECTED TO CLARIFY ITS RULES REGARDING PROGRAMMING OWNERSHIP BY CABLE OPERATORS IF THE FCC BLOCKS THE LARGEST CABLE COMPANIES FROM OWNING MORE PROGRAMMING IT COULD SCUTTLE ANY PLANS FOR PARCELING OFF SUCH TURNER BROADCASTING ASSETS AS CABLE NEWS NETWORK AND THE TNT AND TBS ENTERTAINMENT NETWORKS SUCH A RULING COULD ALSO MAKE IT HARD FOR TCI AND TURNER BROADCASTING TO PURSUE A SIDE VENTURE TO JOINTLY ACQUIRE A MOVIE STUDIO AS SOME HAVE SPECULATED THEY MIGHT DO ALSO UNCERTAINTY ABOUT HOW CABLE OPERATORS WILL STRUCTURE THEIR PROGRAMMING OFFERINGS TO MEET NEW CABLE REGULATIONS COULD MAKE IT DIFFICULT TO PLACE A VALUE ON SOME OF TURNER BROADCASTING'S ASSETS EVERYTHING THAT'S HAPPENING IN THE CABLE INDUSTRY HAS SET PEOPLE BACK ONE PERSON FAMILIAR WITH THE SITUATION SAID OF THE TALKS THE THREE COMPANIES ARE GOING TO STEP BACK AND TRY TO WORK TOGETHER THE BREAKUP IDEA MAY BE REVISITED LATER THE PERSON SAID ANOTHER FACTOR TAX ISSUES ALREADY WAS MAKING IT DIFFICULT FOR THE THREE COMPANIES TO COME UP WITH A STRUCTURE FOR A DEAL ANYBODY ACQUIRING TURNER BROADCASTING ASSETS WOULD HAVE TO PAY HUGE CAPITALGAINS TAXES UNLESS THE DEAL WAS STRUCTURED AS A TAXFREE SPLITUP WHICH IS DIFFICULT THE LATEST COMMENTS FOLLOW A STATEMENT LAST MONTH BY TCI'S CHIEF EXECUTIVE JOHN C MALONE THAT THE TALKS WEREN'T LIKELY TO RESULT IN A BREAKUP OF TURNER BROADCASTING BECAUSE THE THREE COMPANIES DIDN'T HAVE ENOUGH OF AN INCENTIVE FOR SUCH A DRAMATIC MOVE THE TALKS WERE ALWAYS EXPLORATORY IN NATURE ONE PERSON CLOSE TO TURNER BROADCASTING SAID OTHER PEOPLE CLOSE TO THE TALKS HAVE SAID THE DISCUSSIONS BEGAN IN MARCH WHEN MR TURNER TOLD MR MALONE AND GERALD M LEVIN TIME WARNER'S CHIEF EXECUTIVE OFFICER THAT HE WANTED FREEDOM FROM THE CABLE OPERATORS WHO LARGELY CONTROL HIS BOARD REACHED LAST NIGHT SPOKESMEN FOR TURNER BROADCASTING TIME WARNER AND TCI DECLINED TO COMMENT SEPARATELY TURNER BROADCASTING PREPARING TO REFINANCE SOME OF ITS 17 BILLION OF LONGTERM DEBT FILED A SHELF REGISTRATION FOR UP TO 11 BILLION OF SENIOR AND SENIOR SUBORDINATED DEBT THE STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION SAYS THE COMPANY WILL USE PROCEEDS FROM SENIOR AND SENIORSUBORDINATED DEBT OFFERINGS TO REDUCE OUTSTANDING BORROWINGS AND FOR GENERAL CORPORATE PURPOSES THE COMPANY DECLINED TO ELABORATE NED P ZACHAR A DEBT ANALYST WITH DUFF & PHELPS SAID TURNER BROADCASTING PROBABLY WILL REFINANCE 12 SENIOR SUBORDINATE DEBENTURES DUE 2001 THAT DEBT WHICH STOOD AT 536 MILLION AT YEAR END ISN'T REDEEMABLE UNTIL OCTOBER 1994 BUT THE COMPANY MAY LAUNCH A DEBT OFFERING LONG BEFORE THEN TO LOCK IN LOW INTEREST RATES HE SAID ALSO REDEEMABLE IN OCTOBER 1994 IS 277 MILLION OF ZEROCOUPON NOTES WHICH YIELD 8 9305070029 930507 JEFFERSON SMURFIT'S 1992 PROFIT FELL 39 BOXBOARD SALES CITED LONDON ACCORDING TO THE CORNFLAKE INDICATOR THE US ECONOMY ISN'T RECOVERING FAST ENOUGH FOR ONE COMPANY DEPENDENT ON IT JEFFERSON SMURFIT GROUP PLC SOME 70 OF THE IRISH PAPERANDPACKAGING MANUFACTURER'S BUSINESS IS IN NORTH AMERICA WHERE PRICES FOR BOXBOARD USED FOR PACKAGING CEREAL AND OTHER CONSUMER PRODUCTS KEEP FALLING AND THAT HAS BEEN A PROBLEM FOR JEFFERSON SMURFIT YESTERDAY JEFFERSON SMURFIT REPORTED THAT PRETAX PROFIT FELL 39 IN THE FISCAL YEAR ENDED JAN 31 BECAUSE OF THE RECESSION IN NORTH AMERICA AND THE UK A BOUT OF HIGH INTEREST RATES IN IRELAND AND MARKET DECLINES IN GERMANY AND ELSEWHERE IN CONTINENTAL EUROPE PRETAX PROFIT FELL TO 955 MILLION IRISH POUNDS OR PUNTS 1474 MILLION FROM 1575 MILLION IRISH POUNDS SALES EDGED UP 26 TO 126 BILLION IRISH POUNDS 154 BILLION IN A STATEMENT JEFFERSON SMURFIT SAID ITS INDUSTRY HAS HAD MANY FALSE DAWNS IN THE PAST BUT NOW IT SAID AN ECONOMIC UPTURN IN THE US AND UK SHOULD BRING BETTER RESULTS THOUGH THE OUTLOOK FOR CONTINENTAL EUROPE IS FAR FROM BRIGHT SMURFIT SAID GOOD RESULTS FROM LATIN AMERICAN OPERATIONS JUSTIFY FURTHER INVESTMENT IN THAT REGION FURTHER DEPRESSING SMURFIT'S RESULTS WAS AN EXCEPTIONAL CHARGE OF 284 MILLION IRISH POUNDS THE CHARGE FOLLOWS A REVIEW OF THE COMPANY'S EUROPEAN MILL ASSETS AND INCLUDES THE COSTS OF CLOSING THE OPERATIONS OF A SPANISH ASSOCIATE SMURFIT SAID THE CLOSURE WILL BE VERY POSITIVE FOR EARNINGS LOOKING AHEAD AND WILL REDUCE CASH OUTFLOW 9305070028 930507 SPAIN'S ARGENTARIA TO ENLARGE OFFERING TO MEET BIG DEMAND MADRID SPAIN'S STATE BANKING GROUP ARGENTARIA CORP BANCARIA DE ESPANA SAID IT WILL GO AHEAD WITH PLANS TO ENLARGE ITS GLOBAL STOCK OFFERING TO 25 FROM 22 OF CAPITAL AFTER BEING DELUGED WITH ORDERS FOR SHARES ARGENTARIA SAID IN A STATEMENT THAT DURING THE SUBSCRIPTION PERIOD THAT ENDED WEDNESDAY INVESTORS PLACED ORDERS FOR 1933 MILLION SHARES OR NEARLY SEVEN TIMES THE INITIAL OFFERING OF 28 MILLION SHARES GIVEN THE OVERWHELMING DEMAND ARGENTARIA SAID IT WILL GO AHEAD WITH PLANS TO EXPAND THE PLACEMENT TO 313 MILLION SHARES OR 25 OF THE GROUP THE SHARE ISSUE WILL RAISE 11917 BILLION 103 BILLION PESETAS THE GOVERNMENT HAS SET A CEILING OF 25 ON THE AMOUNT OF ARGENTARIA TO BE PRIVATIZED THE BANKING GROUP SAID THAT DEMAND WILL BE ACCOMMODATED BY PRORATING REQUESTS FOR SHARES ARGENTARIA HAD PREVIOUSLY ANNOUNCED THAT IT WAS WILLING TO EXPAND THE OFFERING IF DEMAND WAS STRONG BOTH THE LARGE AMOUNT REQUESTED AND ITS MARKED DIVERSITY ADVISE ENLARGING THE SIZE OF THE INITIAL OFFER ARGENTARIA SAID IN A STATEMENT ARGENTARIA SAID THAT 837 NONSPANISH INSTITUTIONAL INVESTORS 815 DOMESTIC INSTITUTIONS AND 370270 PRIVATE INVESTORS REGISTERED FOR SHARES THE BANKING GROUP SAID THAT THE PLACEMENT WAS 45 TIMES OVERSUBSCRIBED BY DOMESTIC INVESTORS AND 11 TIMES OVERSUBSCRIBED BY INTERNATIONAL INVESTORS ARGENTARIA SHARES WILL START TRADING ON SPAIN'S FOUR MARKETS AS WELL AS IN NEW YORK AND ON LONDON'S STOCK EXCHANGE AUTOMATED QUOTATION SEAQ INTERNATIONAL ON MAY 12 9305070027 930507 NORTHWEST ANNOUNCES SUMMER FARE CUTS OF AS MUCH AS 33 NEW YORK AP NORTHWEST AIRLINES ANNOUNCED SUMMER FARE DISCOUNTS OF AS MUCH AS 33 LATE YESTERDAY IN HOPES OF LEAVING RIVAL CARRIERS WITH HIGHER PRICES AT LEAST UNTIL THE MORNING MAJOR AIRLINES ROUTINELY MATCH FARE SALES BY COMPETITORS BUT NORTHWEST'S LATE ANNOUNCEMENT APPEARED INTENDED TO GET A FEW HOURS IN RESERVATION COMPUTERS AS THE ONLY CARRIER WITH THE DISCOUNTED FARES NORTHWEST A UNIT OF WINGS HOLDINGS INC TOOK A SIMILAR STRATEGY LAST MONTH ANNOUNCING A 35 DISCOUNT ON A SUNDAY OTHER MAJOR CARRIERS WEREN'T ABLE TO MATCH THE CUTS UNTIL MONDAY THE SALE ON NORTH AMERICAN AND SOME TRANSATLANTIC FLIGHTS ENDS AT MIDNIGHT ON MAY 18 UNDER THE SALE TRAVEL MUST BEGIN ON OR AFTER MAY 27 AND BE COMPLETED BY SEPT 15 THE AIRLINE SAID IT WOULD OFFER BIGGER DISCOUNTS FOR TRAVEL COMPLETED BY JUNE 30 THE NONREFUNDABLE TICKETS REQUIRE 14DAY ADVANCE PURCHASE AND OTHER RESTRICTIONS APPLY NORTHWEST SAID THE DISCOUNTS ARE NOT EXPECTED TO BE AS DEVASTATING TO AIRLINE FINANCES AS LAST SUMMER'S 50 SALE THE CHIEF FINANCIAL OFFICER FOR AMERICAN AIRLINES THE NATION'S LARGEST CARRIER HAS SAID THAT A 35 SALE WOULD BE GOOD FOR THE INDUSTRY EVEN IF IT LASTED THROUGH THE SUMMER SUMMERTIME FARE SALES ARE COMMON AS AIRLINES SCRAMBLE OVER ATTRACTING LEISURE TRAVELERS AT A TIME WHEN BUSINESS TRAVEL TYPICALLY DROPS OFF WHILE NORTHWEST MAY BE CONCEDING THAT FARES WILL BE CUT EVENTUALLY AND MOVING TO TAKE THE ADVANTAGE ITS PERSISTENT DISCOUNTING HAS PROMPTED SOME CONCERNS THAT IT NEEDS CASH 9305070026 930507 VINTAGE PETROLEUM EXPECTS TO REPORT SURGE IN EARNINGS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL VINTAGE PETROLEUM INC EXPECTS TO REPORT THAT NET INCOME SURGED TO A RANGE OF 57 MILLION TO 59 MILLION OR 29 CENTS TO 30 CENTS A SHARE IN THE FIRST QUARTER CHARLES STEPHENSON CHAIRMAN AND CHIEF EXECUTIVE SAID IN AN INTERVIEW THE INCREASE IS DUE PRIMARILY TO OUR OIL AND GAS PRODUCTION MORE THAN DOUBLING MR STEPHENSON SAID IN ADDITION NATURALGAS PRICES WERE ABOUT 30 HIGHER THAN A YEAR EARLIER HE SAID THE FIRSTQUARTER FORECAST INCLUDES A GAIN OF ABOUT 17 MILLION OR NINE CENTS A SHARE DUE TO ACCOUNTING CHANGES EVEN WITHOUT THE GAIN IT IS SUBSTANTIALLY HIGHER THAN EARNINGS IN THE 1992 FIRST QUARTER IN THAT PERIOD VINTAGE EARNED 467000 OR THREE CENTS A SHARE MR STEPHENSON SAID VINTAGE EXPECTS TO REPORT FIRSTQUARTER REVENUE OF ABOUT 37 MILLION DOUBLE THE 183 MILLION A YEAR EARLIER HE ALSO NOTED THAT THE PERSHARE EARNINGS IMPROVEMENT CAME DESPITE A 20 INCREASE IN SHARES OUTSTANDING VINTAGE SOLD 39 MILLION SHARES LAST JANUARY AND REAPED PROCEEDS OF ABOUT 448 MILLION THAT IT WILL USE TO REDUCE DEBT VINTAGE'S STRATEGY IS TO GROW THROUGH ACQUISITIONS AND IT WANTS TO DOUBLE ITS RESERVES IN THE NEXT TWO YEARS MR STEPHENSON SAID THE COMPANY BUYS PRODUCING OIL AND GAS PROPERTIES AND TRIES TO INCREASE PRODUCTION IN THE FIELDS LAST YEAR VINTAGE ACQUIRED ABOUT 100 MILLION OF PROPERTIES THE LARGEST WAS A 765 MILLION PURCHASE OF CALIFORNIA PROPERTIES FROM ATLANTIC RICHFIELD CO THAT'S THE PRIMARY REASON FOR OUR PRODUCTION INCREASE HE SAID VINTAGE EXPECTS TO FINANCE NEW PURCHASES WITH BANK BORROWINGS WE HAVE ABOUT 75 MILLION OF UNUSED LINES OF CREDIT THAT CAN BE USED AS EQUITY TO BUY NEW OIL AND GAS RESERVES MR STEPHENSON SAID HE SAID VINTAGE ISN'T INTERESTED IN SELLING ADDITIONAL SHARES IT'S TOO EARLY TO SAY WHAT THIS YEAR'S SURGE IN NATURALGAS PRICES WILL DO TO THE ACQUISITION MARKET MR STEPHENSON SAID SOME ANALYSTS EXPECT THE NUMBER OF PURCHASES TO DECLINE AS SELLERS CHOOSE TO HOLD ON TO PROPERTIES OR DEMAND MUCH HIGHER PRICES THE TULSA OKLA COMPANY LAST YEAR BEGAN PAYING A ONECENTASHARE DIVIDEND BUT DOESN'T SEE THAT GOING UP SOON OUR FIRST THRUST AND FOCUS IS GOING TO BE ON A VERY AGGRESSIVE REPAYMENT OF OUR DEBT AND FOR ACQUISITIONS MR STEPHENSON SAID THE COMPANY HAD LONGTERM DEBT OF ABOUT 814 MILLION AT THE END OF THE FIRST QUARTER AND MR STEPHENSON SAID VINTAGE WILL REDUCE IT MONTHLY AS CASH FLOW ALLOWS 9305070025 930507 MONEY FUND ASSETS INCREASE 295 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE 295 BILLION TO 58786 BILLION FROM 58491 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 632 RETAIL MONEY MARKET MUTUAL FUNDS FELL 171 BILLION TO 38677 BILLION THE TRADE GROUP SAID ASSETS OF 396 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL 171 BILLION TO 30656 BILLION ASSETS OF 236 RETAIL TAXEXEMPT FUNDS ROSE 42 MILLION TO 8021 BILLION ASSETS OF THE 262 INSTITUTIONAL MONEY MARKET FUNDS ROSE 466 BILLION TO 20110 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 212 TAXABLE MONEY MARKET FUNDS ROSE 419 BILLION TO 18015 BILLION ASSETS OF 50 TAXEXEMPT FUNDS ROSE 4766 MILLION TO 2095 BILLION 9305070024 930507 WHO'S NEWS AMERICAN EXPRESS CO AMERICAN EXPRESS CO NEW YORK JOHN JP MCDONNELL 41 YEARS OLD WAS NAMED WORLDWIDE CONTROLLER OF THE AMERICAN EXPRESS TRAVEL RELATED SERVICES CO UNIT SUCCEEDING SALVATORE VASTO WHO LEFT TO PURSUE OTHER INTERESTS MR VASTO COULDN'T BE REACHED FOR COMMENT MR MCDONNELL HAD BEEN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE COMPANY'S US TRAVEL SERVICES GROUP JAY G STUART 44 WILL SUCCEED HIM AS SENIOR VICE PRESIDENT IN THAT POST MR STUART HAD BEEN VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE INTERNATIONAL GROUP 9305070023 930507 NORTHWEST AIR GM AGREE TO PROMOTION IN BID TO SELL CAPRICE MINNEAPOLIS NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC AND GENERAL MOTORS CORP HAVE AGREED TO A JOINT PROMOTION EFFORT THAT WILL AWARD TWO AIRLINE TICKETS TO PURCHASERS OF GM'S SLOWSELLING CHEVROLET CAPRICE FULLSIZED CARS THE PROMOTION WHICH BEGAN YESTERDAY WILL GIVE CAPRICE PURCHASERS THE OPTION OF TAKING THE TWO ROUNDTRIP TICKETS OR GETTING CASH BACK ON THE CARS PURCHASERS WILL BE ABLE TO FLY ANYWHERE NORTHWEST FLIES IN THE US EUROPE ASIA AND AUSTRALIA GM PREVIOUSLY OFFERED 1500 CASH REBATES AS AN INCENTIVE TO PURCHASE THE CAPRICE BUT A NORTHWEST SPOKESMAN SAID THE AMOUNT OF THE REBATE INVOLVED IN THE TICKET PROMOTION WOULD BE DETERMINED BY INDIVIDUAL CAR DEALERS GM COULDN'T BE REACHED FOR COMMENT GM'S HAS HAD TROUBLE SELLING THE ODDLY SHAPED REARWHEEL DRIVE CAPRICE SINCE ITS INTRODUCTION IN 1990 SALES HAVE SLOWED FURTHER THIS YEAR IN THE FIRST FOUR MONTHS OF THIS YEAR CAPRICE SALES SLIPPED 9 FROM THEIR YEARAGO LEVELS EVEN AS TOTAL US CAR SALES GAINED 83 IN THE SAME PERIOD NORTHWEST SAID THE OFFER APPLIES TO CAPRICES PURCHASED BETWEEN NOW AND JUNE 30 THE TICKETS MUST BE PURCHASED 14 DAYS IN ADVANCE OF DEPARTURE AND BLACKOUT DATES AND OTHER RESTRICTIONS WILL APPLY 9305070022 930507 POTOMAC WATCH HILLARY'S CHOICE ON CIVIL RIGHTS BACK TO THE FUTURE BY PAUL A GIGOT POLITICS IS WEIRD SO IS HISTORY THAT'S THE ONLY WAY TO EXPLAIN THE ALLIANCE OF LANI GUINIER AND JOHN C CALHOUN THE STRANGE NEW BEDFELLOWS OF AMERICAN CIVILRIGHTS POLICY MS GUINIER IS A YOUNG BLACK TARTTONGUED LAW PROFESSOR NOMINATED BY PRESIDENT CLINTON FOR THE NATION'S LEADING CIVILRIGHTS POST SHE IS AN FOH OR FRIEND OF HILLARY CLINTON CALHOUN IS THE ULTIMATE IN WHAT THE POLITICALLY CORRECT NOW CALL DEAD WHITE MALES HE DIED IN 1850 AS SLAVERY'S MOST RENOWNED DEFENDER YET THE TWO NOW AGREE ON CIVILRIGHTS LAW A FACT THAT SHOWS HOW FAR MARTIN LUTHER KING JR'S MOVEMENT HAS STRAYED FROM ITS ROOTS AND WHY THE GUINIER NOMINATION MAY BE BILL CLINTON'S NEXT POLITICAL FIGHT A VICE PRESIDENT AND SENATOR IN HIS DAY CALHOUN ACHIEVED LASTING FAME AS A POLITICAL THEORIST A SOUTH CAROLINIAN HE FORESAW THAT THE SOUTH AND ITS SLAVEOWNING WAYS WERE THREATENED BY A NUMERICAL MAJORITY IN THE ABOLITIONIST NORTH SO HE POSTULATED HIS THEORY OF THE CONCURRENT MAJORITY BY THIS HE MEANT THAT ANY MINORITY WITH A MAJOR INTEREST SAY SLAVERY COULD VETO THE DECISIONS OF A MERE NUMERICAL MAJORITY IT WAS ALL INGENIOUS SINCE PROTECTING MINORITY RIGHTS AMID MAJORITY CONSENT IS ONE OF THE OLDEST AMERICAN DILEMMAS THE SENATE IS AN ATTEMPT TO PROTECT SMALL STATES CALHOUN THOUGHT HIS IDEA WOULD CHECK MAJORITY ABUSES AND PRODUCE HARMONY AND COMPROMISE ABRAHAM LINCOLN WASN'T CONVINCED NOW 150 YEARS LATER COMES MS GUINIER MORE IMPRESSED BY CALHOUN THAN LINCOLN SHE IS AN EXPERT ON VOTINGRIGHTS LAW FOR RACIAL MINORITIES BUT SHE IS NOT CONTENT WITH SUCH CONSTITUTIONAL NOTIONS AS ONEMAN ONEVOTE OR REMOVING BARRIERS TO VOTING THE AIM OF HER LEGAL ACTIVISM IS WHAT SHE CALLS A MEANINGFUL VOTE TO ELECT AUTHENTIC BLACKS IN THE GUINIER VIEW SOME VOTERS ARE MORE EQUAL THAN OTHERS AUTHENTICITY REFERS TO A CULTURAL AND PSYCHOLOGICAL VIEW OF GROUP SOLIDARITY SHE WROTE IN A 1991 MICHIGAN LAW REVIEW ARTICLE A TYPICAL WORK BLACK REPRESENTATIVES ARE NOT JUST PHYSICALLY BLACK SO EVEN VIRGINIA'S AFRICANAMERICAN GOVERNOR DOUGLAS WILDER ISN'T AUTHENTIC SHE SAYS BECAUSE HE WAS ELECTED WITH VOTES OF THE WHITE MAJORITY HE THEREFORE MUST PURSUE A MAINSTREAM AGENDA THAT ISN'T IMPORTANT TO THE BLACK COMMUNITY THIS WILL AMAZE AMERICANS WHO THOUGHT THE CIVILRIGHTS STRUGGLE WAS PRECISELY ABOUT THE ABILITY OF BLACKS AND OTHERS TO COMPETE IN THE POLITICAL MAINSTREAM BUT MS GUINIER CARES MUCH MORE ABOUT GUARANTEED ELECTORAL AND LEGISLATIVE RESULTS SHE PROPOSES A SYSTEM OF PROPORTIONATE REPRESENTATION TO ENSURE THAT BLACKS ARE ELECTED IN DIRECT RELATION TO THEIR SHARE OF THE POPULATION PRESUMABLY THIS MEANS MANY OF THOSE WHITE SOUTHERN DEMOCRATS NOW IN THE SENATE WOULD HAVE TO RESIGN AND SHE FAVORS GRANTING BLACKS A MINORITY VETO ON MUCH MAJORITY LEGISLATION RON DELLUMS AND THE BLACK CAUCUS COULD JUST SAY NO THUS WE ARE BACK TO THE 1830S AND CALHOUN WHOM SHE ACTUALLY CITES AS A PRECEDENT ONLY IN AMERICA OR PERHAPS ONLY IN THE FORMER YUGOSLAVIA FOR THE GUINIER VISION MIGHT BE NEEDED IN A NATION WITH RACIAL HATRED AS SEVERE AS THAT BETWEEN MUSLIMS AND SERBS BUT SUCH RACIAL REDUCTIONISM PUTTING RACE ABOVE ALL OTHER INTERESTS IS MORE SUITED TO THE OLD CONFEDERACY THAN TO THE AMERICAN TRADITION THE ROOT AMERICAN PRINCIPLE OVER WHICH LINCOLN FOUGHT A WAR IS THAT RIGHTS INHERE IN INDIVIDUALS NOT GROUPS MS GUINIER IS BETTER QUALIFIED FOR THE BOSNIAN DESK AT STATE THAN CIVIL RIGHTS AT JUSTICE HER EXOTIC VIEWS HAVE PROVOKED DEBATE EVEN WITHIN THE USUALLY UNITED CIVILRIGHTS LOBBY THE AMERICAN JEWISH CONGRESS AJC WHICH WAS LIBERAL ENOUGH TO OPPOSE ROBERT BORK AND CLARENCE THOMAS HAS PUBLICLY SAID MS GUINIER'S VIEWS ARE INCONSISTENT WITH THE LAW SHE WOULD HAVE TO ENFORCE AND SIMPLY BAD PUBLIC POLICY THAT WARNING HAS ALARMED THE WHITE HOUSE WHICH APPARENTLY FORGOT THAT CANDIDATE CLINTON OPPOSED RACIAL QUOTAS A SCRAMBLE IS ON TO HAVE MS GUINIER MEET THE AJC TO HEAD OFF FORMAL OPPOSITION BUT SHE ISN'T EASILY RESTRAINED MS GUINIER ONCE SAID MR CLINTON SHOULD CLEAN HOUSE IN THE JUSTICE DEPARTMENT WITH A PITCHFORK NOT A BROOM SHE ALSO KNOWS SHE HAS THE PROTECTION OF MRS CLINTON WHO WAS HER COLLEAGUE AT YALE AND ATTENDED HER WEDDING MAYBE IT'S SOMETHING IN THE WATER BECAUSE CALHOUN WENT TO YALE TOO REPUBLICANS HAVE BEEN HANDED A GIFT HORSE EVEN IF THEY OPPOSE HER NOMINATION AND LOSE THEY CAN AGAIN DEFINE MR CLINTON AS AN OLD IN THIS CASE VERY VERY OLD DEMOCRAT IF NOTHING ELSE REPUBLICAN SENATORS SHOULD REQUIRE THAT MS GUINIER HAVE A LONG PUBLIC COLLOQUY WITH THAT REFORMED JIM CROW SEGREGATIONIST STROM THURMOND MAYBE HE CAN TEACH HER SOMETHING ABOUT THE PERILS OF CALHOUNISM 9305070021 930507 WHO'S NEWS ELJER INDUSTRIES INC ELJER INDUSTRIES INC DALLAS HENRY W LEHNERER WAS NAMED CHIEF FINANCIAL OFFICER AND VICE PRESIDENT OF FINANCE AT THIS PLUMBING PRODUCTS MAKER MR LEHNERER 52 YEARS OLD HAD BEEN CHIEF FINANCIAL OFFICER OF PRINCETON PACKAGING INC HE SUCCEEDS BROOKS SHERMAN 32 WHO HAD BEEN ACTING CHIEF FINANCIAL OFFICER SINCE A CARL MUDD 49 RESIGNED IN OCTOBER ALSO WALTER C MINNICK 50YEAROLD CHIEF EXECUTIVE OFFICER PRESIDENT AND DIRECTOR OF TJ INTERNATIONAL WAS ELECTED TO ELJER'S BOARD INCREASING THE BOARD'S SIZE TO SEVEN 9305070020 930507 INTERNATIONAL VIRGIN GROUP SUES BRITISH AIR OVER PRACTICES BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL AFTER MONTHS OF THREATS RICHARD BRANSON'S VIRGIN ATLANTIC AIRWAYS FILED SUIT IN A LONDON COURT AGAINST BRITISH AIRWAYS PLC FOR ACTIONS CONNECTED TO AN ALLEGED DIRTY TRICKS CAMPAIGN THE HIGH COURT SUIT ACCUSES BRITISH AIRWAYS OF TAPPING VIRGIN'S COMPUTER TO OBTAIN INFORMATION ON PASSENGERS AND AIRCRAFT THE SUIT COVERS ALLEGED COPYRIGHT INFRINGEMENT BREACH OF CONFIDENCE AND MISUSE OF CONFIDENTIAL INFORMATION UNDER BRITISH LAW VIRGIN A UNIT OF VIRGIN GROUP LTD DOESN'T YET HAVE TO STATE THE AMOUNT IN DAMAGES IT SEEKS MR BRANSON IS CHAIRMAN OF VIRGIN GROUP VIRGIN ALSO WARNED ITS COMPETITOR THAT THE SUIT WAS ONLY THE FIRST OF SEVERAL IT WILL FILE IN THE UK OVER THE NEXT FEW WEEKS THOUGH A SPOKESMAN DECLINED TO SPECIFY THE ADDITIONAL ALLEGATIONS VIRGIN ALSO PLANS TO CARRY OUT ITS PREVIOUS THREATS TO FILE AN ANTITRUST SUIT IN THE US THE SPOKESMAN SAID FINALLY HE SAID VIRGIN IS LIKELY TO FILE A COMPLAINT WITH THE EUROPEAN COMMUNITY COMMISSION IN BRUSSELS BRITISH AIRWAYS REACTED WITH A TERSE STATEMENT SAYING IN PART BRITISH AIRWAYS HAS MADE IT CLEAR THAT ANY LIABILITY WHICH IT MAY HAVE WILL BE MET IN FULL AND REGRETS THAT VIRGIN DISCONTINUED THE SETTLEMENT DISCUSSIONS THE ACTION MARKS A SIGNIFICANT ESCALATION IN THE 1 1/2YEAR CONFLICT BETWEEN THE TWO BRITISH AIRLINES AND ENDS THREE MONTHS OF PEACE TALKS BETWEEN THE TWO SIDES MR BRANSON HIMSELF FIRST UNCOVERED EVIDENCE THAT LED HIM TO BELIEVE BRITISH AIRWAYS WAS ATTEMPTING TO POACH PASSENGERS WHEN HIS DEMANDS FOR AN EXPLANATION WERE REJECTED AND THEN CRITICIZED IN THE BRITISH AIRWAYS NEWSLETTER MR BRANSON AND HIS AIRLINE SUED FOR LIBEL THAT SUIT WAS SETTLED IN VIRGIN'S FAVOR ON JAN 11 WITH BRITISH AIRWAYS PAYING 610000 955260 PLUS LEGAL EXPENSES BY SOME ESTIMATES BRITISH AIRWAYS HAS SPENT ABOUT 55 MILLION 86 MILLION ON THE CASE SO FAR IN THE WAKE OF THE LIBEL CASE TALKS ON DAMAGES BEGAN JAN 25 WITH A MEETING BETWEEN MR BRANSON AND SIR COLIN MARSHALL THE BRITISH AIRWAYS CHAIRMAN WHO WAS THEN CHIEF EXECUTIVE OFFICER THE TWO SIDES APPEARED CLOSE TO A DEAL IN WHICH BRITISH AIRWAYS WOULD HAVE PAID 9 MILLION 141 MILLION TO VIRGIN BUT A DEMAND BY BRITISH AIRWAYS THAT MR BRANSON NEVER TALK ABOUT THE CASE PREVENTED A DEAL 9305070019 930507 LAW LEGAL BEAT MANY JUDGES IN LOWKEY REVOLT GO AROUND SENTENCING GUIDELINES BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHILE COMPLAINING ABOUT RIGID FEDERAL SENTENCING GUIDELINES AND WAITING FOR CHANGES FROM WASHINGTON MANY JUDGES ARE DEVISING WAYS TO GET AROUND THE RULES IN THEIR OWN CASES THIS LOWKEY REBELLION IS BY NO MEANS UNIVERSAL AMONG JUDGES THE MAJORITY OF WHOM APPEAR TO ADHERE CLOSELY TO THE COMPLEX SCHEME SET UP FIVE YEARS AGO TO GOVERN ALL CRIMINAL SENTENCING IN THE FEDERAL COURTS BUT THE EFFORT WHICH RELIES ON EVERYTHING FROM FRESH LEGAL INTERPRETATIONS OF THE GUIDELINES LAW TO INTENTIONAL SHADING OF THE FACTS IN PARTICULAR CASES HAS EXPOSED LOOPHOLES IN THE RULES IRONICALLY THESE MAY RESULT IN THE SAME SORT OF SENTENCING DISPARITIES AMONG JUDGES THAT LED TO ESTABLISHMENT OF GUIDELINES IN THE FIRST PLACE KATE STITH A PROFESSOR AT YALE LAW SCHOOL SAYS THERE ARE VERY DIFFERENT APPROACHES IN APPLYING THE GUIDELINES AROUND THE COUNTRY A DEFENDANT LUCKY ENOUGH TO BE SENTENCED BY A JUDGE WHO IS WILLING TO LOOK FOR WAYS AROUND THE GUIDELINES IS LIKELY TO GET A LOWER SENTENCE THAN SOMEONE SENTENCED BY A JUDGE INTENT ON FOLLOWING THE RULES EXACTLY SHE ADDS THE JUDGES' SELFHELP IN EVADING THE GUIDELINES COMES AT A TIME OF HEIGHTENED CRITICISM OF THE RULES AS WELL AS OF THE RELATED LAWS THAT SET HIGH MANDATORY MINIMUM SENTENCES FOR DRUG OFFENDERS RECENTLY US DISTRICT JUDGE HAROLD GREENE IN WASHINGTON DC DECLARED THE GUIDELINES UNCONSTITUTIONAL AS THEY APPLIED TO A PARTICULAR DRUG DEFENDANT APPARENTLY CONTRADICTING THE US SUPREME COURT WHICH HAS APPROVED THE RULES IN GENERAL MEANWHILE TWO SENIOR JUDGES WHO HAVE WIDE LATITUDE OVER THE KINDS OF CASES THEY PERSONALLY HEAR RECENTLY SAID THEY WOULD NO LONGER TAKE DRUG CASES BECAUSE OF THE HIGH SENTENCES THEY ARE FORCED TO IMPOSE SEPARATELY US ATTORNEY GENERAL JANET RENO SAID THIS WEEK THROUGH HER SPOKESWOMAN THAT SHE WOULD CONSIDER SUPPORTING CHANGES IN THE GUIDELINES AND IN THE DRUG SENTENCES TO REDUCE JAIL TIME SERVED BY LOWLEVEL PARTICIPANTS IN DRUG DEALS THE SENTENCING GUIDELINES ARE A COMPLICATED TABLE OF 43 LEVELS THAT DEFENDANTS MOVE UP OR DOWN BASED ON VARIOUS FACTORS IN A CRIME SUCH AS THE WEIGHT OF DRUGS SOLD THE USE OF A WEAPON AND THE AMOUNT OF MONEY STOLEN A JUDGE IS PERMITTED TO DEPART FROM THE GUIDELINES WHEN PROSECUTORS SAY THE DEFENDANT HAS COOPERATED OR WHEN THE JUDGE FINDS THERE ARE OTHER SIGNIFICANT FACTORS NOT ADEQUATELY CONSIDERED BY THE US SENTENCING COMMISSION EVERY YEAR THE COMMISSION PROPOSES AMENDMENTS TO THE RULES IN ORDER TO ADJUST FOR ANY PROBLEMS THAT HAVE ARISEN WITH SUCH ATTENTION TO DETAIL BY THE COMMISSION THERE IS NO NEED FOR JUDGES TO DEPART FROM THE SENTENCE PRESCRIBED BY THE TABLE WITHOUT A VERY GOOD REASON SAYS US CIRCUIT JUDGE WILLIAM W WILKINS JR WHO IS CHAIRMAN OF THE COMMISSION OF THE RELATIVELY FEW JUDGES WHO ARE BUCKING THE SYSTEM JUDGE WILKINS SAYS THEY RESENT THE DIMINUTION OF AUTHORITY THEY WERE USED TO BEFORE THE GUIDELINES OR THEY BELIEVE IN THEIR HEART THAT THE SENTENCES ARE TOO HIGH A LOT MORE JUDGES MAY BE LOOKING TO DEPART FROM THE GUIDELINES THAN JUDGE WILKINS BELIEVES HOWEVER WHILE THE COMMISSION'S OWN OFFICIAL STUDIES PUT DEPARTURES FOR REASONS OTHER THAN COOPERATION WITH PROSECUTORS AT ONLY 6 IN 1992 ANOTHER RECENT STUDY PUT THE NUMBER AT 20 TO 35 OF CASES THAT STUDY CONDUCTED BY COMMISSIONER ILENE NAGEL OF THE SENTENCING COMMISSION AND BY STEPHEN SCHULHOFER A PROFESSOR AT THE UNIVERSITY OF CHICAGO LAW SCHOOL FOUND THAT JUDGES PROSECUTORS AND DEFENSE LAWYERS ALL COOPERATE TO CIRCUMVENT THE GUIDELINES BY FUDGING THE ACTUAL FACTS OF A CRIME EXAMPLES IN THE STUDY WHICH WAS RECENTLY PUBLISHED IN THE SOUTHERN CALIFORNIA LAW REVIEW INCLUDE CLASSIFYING GUNS FOUND ON DRUG DEALERS AS BEING FOR SPORT AND THEREFORE NOT RELEVANT TO THE GUIDELINES' CALCULATION AND DISCOUNTING THE WEIGHT OF MARIJUANA FOR THE DRYING THAT WOULD OCCUR BETWEEN THE TIME OF AN ARREST AND A TRIAL IN ADDITION PROSECUTORS ARE CHARGING A DEFENDANT WITH HAVING POWDER COCAINE EVEN IF THERE WAS ALSO CRACK PRESENT IN ORDER TO AVOID THE STIFFER PENALTIES FOR POSSESSION OF THAT COCAINE DERIVATIVE SOME DISTRICTS ALSO HAVE POLICIES THAT RESULT IN AUTOMATIC BUMP DOWNS TO OFFENSES THAT HAVE MAXIMUM PENALTIES LOWER THAN WHAT THE GUIDELINES REQUIRE JUDGES 99 OF THE TIME GO ALONG WITH THESE DEALS SAYS PROF SCHULHOFER IT'S THE LESSER OF TWO EVILS HE ADDS BECAUSE JUDGES ARE CHOOSING WITH THE PROSECUTORS TO EVADE THE GUIDELINES SO THEY DON'T HAVE TO SENTENCE DEFENDANTS TO OUTRAGEOUSLY LONG JAIL TERMS TO COMMISSIONER NAGEL THE STUDY SHOWS THAT JUDGES IN DISTRICTS THAT WERE BELOW THE AVERAGE IN LENGTHS OF SENTENCES BEFORE THE GUIDELINES WENT INTO EFFECT ARE CONTINUING TO FIND WAYS TO BE LENIENT WHAT THIS DEBATE IS ABOUT IS SEVERITY AND WHO SETS IT THAT'S THE STORY SHE SAYS OTHERS ARGUE THAT THE EFFORT TO FIND WAYS AROUND THE GUIDELINES IS GROWING BECAUSE THE SENTENCING COMMISSION HAS BEEN UNREASONABLE IN SETTING UP ITS RULES THESE SCHOLARS SAY THAT THE SENTENCING COMMISSION HAS LOST CREDIBILITY AMONG JUDGES BECAUSE OF ITS RIGIDITY IN AN ARTICLE IN THE YALE LAW JOURNAL PROF DANIEL FREED OF YALE LAW SCHOOL ARGUES THAT CONGRESS ACTUALLY INTENDED TO GIVE JUDGES MORE FLEXIBILITY THAN THE COMMISSION IS ALLOWING THE ARTICLE WAS RECENTLY CITED BY FEDERAL APPEALS COURTS IN PHILADELPHIA AND NEW YORK IN APPROVING DEPARTURES FROM THE GUIDELINES THE SECOND THIRD AND NINTH CIRCUIT APPEALS COURTS ARE SAID BY LAWYERS TO GIVE JUDGES THE MOST LEEWAY UNDER THE GUIDELINES LAW US DISTRICT JUDGE JACK WEINSTEIN IN BROOKLYN NY HAS ADOPTED AN EVEN BROADER LEGAL INTERPRETATION OF THE LAW SETTING UP THE SENTENCING COMMISSION RATHER THAN VIEWING THE GUIDELINES AS BINDING HIS THEORY PUTS THE JAIL TIME RECOMMENDED BY THE GUIDELINES ON AN EVEN PAR WITH OTHER FACTORS THAT JUDGES TRADITIONALLY CONSIDER IN SENTENCING EVEN WHEN THE CURRENT GUIDELINE RULES ARE FOLLOWED THERE ARE DIFFERENCES IN SENTENCES SAYS US DISTRICT JUDGE JUDITH KEEP SAN DIEGO JUDGE KEEP BLAMES THAT DEVELOPMENT ON THE COMPLEX RULES THAT FORCE OFFICIALS TO MAKE NUMEROUS CHOICES ABOUT A DEFENDANT'S CRIMINAL BEHAVIOR SHE SAID SHE RECENTLY HAD TWO VERY SIMILAR MARIJUANASMUGGLING CASES IN WHICH ONE PROBATION OFFICER RECOMMENDED NO JAIL TIME AND THE OTHER SAID 24 MONTHS BOTH WERE EARNESTLY CALCULATING THE GUIDELINES SAYS JUDGE KEEP MONARCH LIFE INSURANCE CO SUED THE LAW FIRM THAT REPRESENTED ITS FORMER PARENT ALLEGING A CONFLICT OF INTEREST BASED ON ITS REPRESENTATION OF BOTH THE PARENT AND ITS REGULATED SUBSIDIARY MONARCH LIFE SPRINGFIELD MASS ALLEGES MALPRACTICE AND BREACH OF FIDUCIARY DUTY BY ROPES & GRAY ONE OF BOSTON'S OLDEST AND LARGEST FIRMS THE SUIT FILED IN SUPERIOR COURT IN SPRINGFIELD SEEKS ACTUAL DAMAGES OF 250 MILLION PLUS TREBLE DAMAGES AND ATTORNEYS' FEES UNDER THE STATE'S CONSUMER PROTECTION ACT INSTEAD OF PROTECTING THE INTEREST OF ITS CLIENT MONARCH LIFE OR MAKING FULL DISCLOSURE OF THE CONFLICTING INTERESTS OF ITS CLIENT ROPES & GRAY DID NEITHER MONARCH SAID ACCORDING TO THE COMPLAINT MONARCH CAPITAL CORP THE PARENT ILLEGALLY DIVERTED MILLIONS OF DOLLARS OF MONARCH LIFE'S ASSETS TO FUND MONARCH CAPITAL REAL ESTATE VENTURES AND ROPES & GRAY KNOWINGLY HELPED IN THE DIVERSION OF THESE ASSETS MONARCH LIFE WAS SEIZED LAST MAY BY STATE INSURANCE REGULATORS WHO THEN FILED AN INVOLUNTARY BANKRUPTCY PETITION AGAINST THE PARENT COMPANY MONARCH LIFE RELEASED FROM RECEIVERSHIP AS A SEPARATE FIRM FOUR MONTHS LATER SAYS ROPES & GRAY'S CONDUCT CONTRIBUTED SIGNIFICANTLY TO THE EVENTS THAT LED TO ITS SEIZURE BY THE STATE JOHN D DONOVAN A ROPES & GRAY PARTNER CALLS MONARCH LIFE'S ALLEGATIONS THAT A CONFLICT EXISTS BETWEEN A CORPORATION AND ITS WHOLLY OWNED SUBSIDIARY UNPRECEDENTED AND FLATLY WRONG AND SAID ROPES & GRAY'S CONDUCT CONFORMED WITH ALL APPLICABLE LAW MARTIN LIPTON A NEW YORK CORPORATE LAWYER WHO ISN'T INVOLVED IN THE CASE SAID THAT UNDER MONARCH LIFE'S THEORY VIRTUALLY EVERY CORPORATE LAWYER IN AMERICA COULD BE SUED BUT BRUCE BATY COUNSEL FOR MONARCH LIFE CITED INTERNAL ROPES & GRAY MEMOS INTRODUCED AS EXHIBITS IN THE COMPLAINT THAT SHOW THAT A SENIOR PARTNER WAS VERY NERVOUS ABOUT THE FIRM'S LIABILITY IN THE TRANSFERS OF CASH FROM THE SUBSIDIARY TO THE PARENT HE CONCEDED THAT THE THEORY IN THE CASE IS RELATIVELY NEW BUT NOT WITHOUT PRECEDENTTHE MOST RECENT EXAMPLE BEING THE SUCCESSFUL SUITS AGAINST AUDITORS AND ATTORNEYS IN THE LINCOLN SAVINGS & LOAN CASE HAWAII'S REFUSAL TO ISSUE MARRIAGE LICENSES TO SAMESEX COUPLES MAY VIOLATE THE STATE'S CONSTITUTION THE STATE'S HIGHEST COURT RULED IN A 32 RULING THE HAWAII SUPREME COURT SAID THE STATE'S BAN ON SAMESEX MARRIAGES APPEARS TO VIOLATE EQUALPROTECTION RIGHTS GUARANTEED IN THE STATE'S CONSTITUTION THE COURT SAID SUCH RIGHTS ARE MORE ELABORATE THAN SIMILAR FEDERAL CONSTITUTIONAL RIGHTS THE HAWAII COURT ORDERED THE STATE TO JUSTIFY ITS BAN BY SHOWING THAT IT HAS A COMPELLING STATE INTEREST IN PREVENTING SAMESEX MARRIAGES AND CAN PROTECT THAT INTEREST ONLY BY PROHIBITING SUCH UNIONS LAWYERS SAY THE RULING IS THE FIRST BY ANY APPEALS COURT TO REQUIRE THAT A STATE MEET THE HEAVIEST CONSTITUTIONAL BURDEN OF PROOF THE COMPELLINGSTATEINTEREST TEST TO JUSTIFY A REFUSAL TO GRANT PEOPLE OF THE SAME SEX THE MARITAL RIGHTS OF TRADITIONAL OPPOSITESEX MARRIAGES GAY AND FAMILYRIGHTS LAWYERS SAY THE RULING IS AN IMPORTANT STEP TOWARD ALLOWING GAY COUPLES TO MARRY THEY PREDICT THAT THE STATE WILL BE UNABLE TO SHOW THAT IT HAS A COMPELLING INTEREST TO PROTECT THUS ALLOWING SAMESEX COUPLES FROM HAWAII TO MARRY IN THEIR HOME STATE AND ALSO ENABLING COUPLES FROM OTHER STATES TO COME TO HAWAII TO MARRY BUT WHETHER SUCH MARRIAGES WILL BE RECOGNIZED AUTOMATICALLY BY COURTS IN OTHER STATES IS QUESTIONABLE SOME LAWYERS SAY KENNETH RAGGIO A MARITALLAW EXPERT IN DALLAS SAID THAT EVEN NOW SOME STATES DON'T RECOGNIZE ALL MARITAL RIGHTS SUCH AS THOSE INVOLVING ALIMONY GRANTED BY OTHER STATES THE MARITAL RIGHTS IN HAWAII WOULD BE VALID UNLESS THERE IS A SPECIFIC LAW AND POLICY AGAINST SAMESEX MARRIAGES IN ANOTHER STATE MR RAGGIO SAID IN THE HAWAII CASE THREE COUPLES CHALLENGED THE STATE'S MARRIAGE LAW ARGUING THAT IT VIOLATED THEIR PRIVACY DUEPROCESS AND EQUALPROTECTION RIGHTS UNDER THE STATE CONSTITUTION A LOWER COURT REJECTED THE PLAINTIFFS' ARGUMENT AND DISMISSED THE CASE THE STATE SUPREME COURT HOWEVER REVERSED THAT RULING AND ORDERED A NEW TRIAL ON ONLY EQUALPROTECTION GROUNDS ROBERT MARKS HAWAII'S ATTORNEY GENERAL SAID THAT DESPITE WHAT MANY FAMILYLAW EXPERTS PREDICT WE ARE NOT READY TO CONCEDE TO THE ABSENCE OF A COMPELLING STATE INTEREST BECAUSE THERE IS A LONGSTANDING HISTORY OF OPPOSITESEX MARRIAGE NINIA BAEHR V DIRECTOR OF THE DEPT OF HEALTH HAWAII SUPREME COURT OF HAWAII NO 911394 PLAINTIFFS' LAWYERS CAN BE SUED FOR MALPRACTICE IF INDEPENDENT COMPANIES THEY HIRE TO SERVE DEFENDANTS WITH SUMMONSES DON'T DO THE JOB PROPERLY A NEW YORK APPEALS COURT RULED THE DECISION CAME IN THE CASE OF PAUL RHEINGOLD A NEW YORK TRIAL LAWYER MR RHEINGOLD WAS SUED FOR MALPRACTICE BY A FORMER CLIENT WHOSE PERSONALINJURY CASE WAS DISMISSED AFTER A COMPANY HIRED BY MR RHEINGOLD DIDN'T CORRECTLY SERVE THE DEFENDANT A LOWER COURT DISMISSED THE CLIENT'S CLAIM SAYING MR RHEINGOLD WASN'T RESPONSIBLE FOR THE ACTIONS OF AN INDEPENDENT CONTRACTOR BUT NEW YORK'S HIGHEST COURT REINSTATED THE CASE GIVEN THE CENTRAL IMPORTANCE OF THIS DUTY OUR STATE'S ATTORNEYS CANNOT BE ALLOWED TO EVADE RESPONSIBILITY FOR ITS CAREFUL PERFORMANCE BY THE SIMPLE EXPEDIENT OF 'FARMING OUT' THE TASK TO INDEPENDENT CONTRACTORS HE COURT RULED A MISTAKE OR OVERSIGHT IN THIS AREA CAN DEPRIVE THE CLIENT OF HIS OR HER DAY IN COURT MR RHEINGOLD SAID HE DIDN'T OBJECT TO THE COURT'S RULING THAT A LAWYER IS RESPONSIBLE FOR ENSURING THAT DEFENDANTS ARE PROPERLY SERVED I JUST THINK IT'S UNFAIR TO APPLY IT RETROACTIVELY TO ME HE SAID KLEEMAN V RHEINGOLD NEW YORK COURT OF APPEALS NO 80 DRUG TREATMENT NEW YORK STATE'S HIGHEST COURT RULED THAT A HOSPITAL IS ILLEGALLY DISCRIMINATING AGAINST PREGNANT WOMEN BY KEEPING THEM OUT OF A DRUGTREATMENT PROGRAM THE NEW YORK COURT OF APPEALS RULED THAT JOINT DISEASES NORTH GENERAL HOSPITAL INC CAN KEEP PREGNANT WOMEN OUT OF DRUG TREATMENT ONLY IF IT CAN PROVE AT TRIAL THAT SUCH A POLICY IS MEDICALLY JUSTIFIED THE APPEALS COURT SENT THE CASE BACK TO A LOWER COURT FOR A TRIAL ON THE MATTER JOHN R WILKE IN BOSTON AND ARTHUR S HAYES IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9305070018 930507 COMMODITIES GOLD FUTURES SETTLE AT HIGHEST LEVELS SINCE JULY AS SOME ANALYSTS SEE BEGINNING OF BULL MARKET BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES SETTLED AT THEIR HIGHEST LEVELS SINCE JULY 1992 ENDING 280 FIRMER AT 35830 AN OUNCE FOR THE ACTIVE JUNE CONTRACT THE LATEST SURGE IN GOLD FUTURES EXTENDED A ONESTEPBACK TWOSTEPSFORWARD PROGRESSION OF THE PRECIOUS METAL IN WHAT SOME ANALYSTS ARE NOW CAUTIOUSLY CHARACTERIZING AS THE START OF A BULL MARKET AFTER MORE THAN A DECADE OF A SLUMP FOR THE PAST WEEK THE MARKET HAS BEEN FUNCTIONING LIKE IT'S IN THE BEGINNING A BULL MARKET SAID SCOTT MEYERS A SENIOR ANALYST WITH REDEL TRADING IN NEW YORK BULLISH FUNDAMENTAL FACTORS SUCH AS AN IMPROVING SUPPLYANDDEMAND EQUATION HAVE CONVERGED WITH POSITIVE TECHNICAL OR PRICETREND INDICATORS TO UNDERGIRD THE METAL HE SAID A GENERALLY WEAKER DOLLAR WHICH TENDS TO MOVE INVERSELY TO GOLD ALSO IS SUPPORTING GOLD FUTURES ON NEW YORK'S COMMODITY EXCHANGE THE MARKET MAKES LITTLE DIPS SUCH AS WEDNESDAY'S DROP OF 20 CENTS BUT THOSE DIPS ARE MET THE NEXT DAY BY AGGRESSIVE BUYING BY THE FUNDS MR MEYERS SAID HE WAS REFERRING TO COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY THAT APPEAR TO BE THE MAJOR PLAYERS IN THE RECENT RALLY OF GOLD FOR NOW THE REAL TEST IS SEEING GOLD PUSH PAST 360 AN OUNCE TRADERS AND ANALYSTS SAID MR MEYERS SAID A TEST OF THAT LEVEL IS NOT FAR OFF THE MARKET IS SIMPLY NOT ALLOWING THE METAL TO STAY NEGATIVE FOR LONG HE SAID DENISE GIORDANO DIRECTOR OF PRECIOUS METALS FOR SWISS BANK CORP IN NEW YORK IS SETTING HER SIGHTS ON NEARTERM MOVES TO EVEN HIGHER RESISTANCE LEVELS TO 370373 AN OUNCE IT SEEMS THE TYPE OF INVESTMENT WE'RE SEEING IS NOT SHORT TERM BECAUSE THERE'S NO PANIC ON A PULLBACK IN THE MARKET SHE SAID WE HAVE NOT SEEN THAT KIND OF MONEY IN YEARS MS GIORDANO SAID THE RECENT UPWARD MOVES IN GOLD FUTURES ARE BEING PROPELLED BY LARGE MONEY MANAGERS FUNDS AND OVERSEAS SYNDICATES THIS IS BIGGER MONEYSMALLER PRIVATE INVESTORS AREN'T IN THIS MOVE AT ALL THE SWISS BANK EXECUTIVE SAID SHE QUESTIONED WHETHER GOLD FOR JUNE DELIVERY COULD BLAST FAR BEYOND 373 ABOVE THAT WE COULD SEE TOO MANY MINING COMPANIES ENTICED TO SELL INVENTORY FORWARD SHE SAID IF HOWEVER 373 WERE BREACHED IN THE NEXT SEVERAL WEEKS I'D THEN BE BULLISH UP TO 420 SHE SAID BERNARD SAVAIKO A SENIOR ANALYST WITH PAINEWEBBER WHO HAS TAKEN A CAUTIOUS VIEW ON GOLD'S RECENT RISE SEES MORE UPWARD MOMENTUM AS WELL BASED ON THE METAL'S PERSISTENT RALLIES OFF MODERATE SETBACKS IT LOOKS PRETTY CONSTRUCTIVE HE SAID I DON'T THINK WE'RE QUITE THROUGH ON THE UPSIDE YET DESPITE THERE BEING A LOT OF SPECULATIVE FLUFF IN THE MARKET HE WARNED HOWEVER THAT THE MARKET IS REACHING A LEVEL THAT MAY START TO ENTICE SOME PROFITTAKING FROM THE FAR EAST WHERE INVESTORS TEND TO LOOK FOR BARGAINS AND SELL INTO STRENGTH ALTHOUGH GOLD SEEMS TO HAVE SEEN ITS ROLE AS AN INVESTMENT HAVEN ERODED OVER THE YEARS INVESTORS' CONCERN OVER POSSIBLE US MILITARY INTERVENTION IN BOSNIA SEEMS TO BE LENDING SUPPORT TO GOLD PRICES MR SAVAIKO SAID WITH MILITARY INTERVENTION LOOMING WITH REGARD TO BOSNIA SELLING OF THE METAL WAS DISCOURAGED HE SAID OTHER PRECIOUS METALS ENDED STRONGER ON THE DAY IN NEW YORK SILVER FOR JULY DELIVERY SETTLED SIX CENTS HIGHER AT 4375 AN OUNCE ON THE COMEX PLATINUM FOR JULY DELIVERY SHOT UP 750 TO 38760 ON THE NEW YORK MERCANTILE EXCHANGE RECOUPING THE REST OF ITS LOSSES FROM ITS 930 ROUT TUESDAY PALLADIUM FOR JUNE DELIVERY CLOSED 405 HIGHER AT 12075 IN OTHER COMMODITIES MARKETS COPPER COPPER FUTURES PRICES TUMBLED TO THEIR LOWEST LEVELS IN NEARLY SIX YEARS EXTENDING THEIR RECENT SLIDE ON NEW YORK'S COMMODITY EXCHANGE COPPER FOR JULY DELIVERY PLUNGED 340 CENTS A POUND TO SETTLE AT 7815 CENTS AMID GLUTTED MARKET CONDITIONS TRADERS SAID A WEAKENING JAPANESE ECONOMY AND TEPID INDUSTRIAL DEMAND IN EUROPE CONTINUES TO HURT THE BASE METAL WHICH EARLIER THIS YEAR TOOK A HIT FROM A STRONG DROP OFF IN CHINESE DEMAND TRADERS SAID TECHNICALLY THINGS LOOK VERY WEAK SAID MR MEYERS THE REDEL ANALYST THERE'S NOTHING TO STOP IT ON THE DOWNSIDE IT MAY MOVE TO AS LOW AS 70 CENTS HE PREDICTED LUMBER LUMBER FUTURES PRICES PLUNGED UNDER CONTINUING PRESSURE FROM LIQUIDATION OF LUMBER INVENTORIES AND WEAK PRICES ON THE CASH MARKET FOR WOOD SINCE MARCH 15 WHEN LUMBER FOR MAY DELIVERY PEAKED AT A RECORD PRICE OF 45820 PER THOUSAND BOARD FEET PRICES HAVE DROPPED SHARPLY PRICES ON THE CASH MARKET ARE BEING QUOTED WELL BELOW THE 300PERTHOUSANDBOARD FEET LEVEL PRESSURING FUTURES PRICES LOWER ANALYSTS SAID WHOLESALERS THAT LOADED UP ON LUMBER DURING THE FIRST THREE MONTHS OF THE YEAR ARE NOW LIQUIDATING IT AT THE CHICAGO MERCANTILE EXCHANGE YESTERDAY LUMBER FOR JULY DELIVERY DECLINED 12 TO 299 PER THOUSAND BOARD FEET UNDER ESPECIALLY HEAVY SELLING PRESSURE LATELY HAS BEEN THE MAY LUMBER FUTURES CONTRACT BECAUSE THE CONTRACT EXPIRES THIS MONTH ITS PRICE IS CLOSELY FOLLOWING PRICES ON THE CASH MARKET YESTERDAY THE MAY CONTRACT WAS DOWN 1240 TO 28240 A THOUSAND BOARD FEET ENERGY MARKET PARTICIPANTS SOLD OFF CRUDE OIL HOLDINGS NEAR THE END OF A LIGHT TRADING DAY TO TAKE PROFITS IN THE ABSENCE OF FUNDAMENTAL NEWS TO SPUR ACTIVITY ALTHOUGH TECHNICAL INDICATORS POINTED TO HIGHER PRICES EARLY IN THE DAY VOLUME REMAINED LIMITED AND THE POSITIVE START THAT HAD CARRIED OVER FROM WEDNESDAY'S LATE RALLY FIZZLED PRESSURE TO SELL AND LOCK IN GAINS LATE IN THE DAY CAUSED LIGHT SWEET CRUDE FOR JUNE DELIVERY TO SETTLE AT 2047 A BARREL UP ONE CENT NATURALGAS FUTURES FELL AGAIN IN BRISK SELLING AND BROKERS SAID THE JUNE CONTRACTS HAVEN'T SHOWED THE STRENGTH EXPECTED OF THEM ALL WEEK FUTURES CONTRACTS FOR JUNE DELIVERY SETTLED DOWN FIVE CENTS AT 2174 PER MILLION BRITISH THERMAL UNITS EQUAL TO ABOUT ONE THOUSAND CUBIC FEET OF GAS AFTER RECORDHIGH PRICES REACHED IN MAY TRADING SUPPLIES HAVE BECOME MORE READILY AVAILABLE AS INVENTORIES ROSE IN THE WAKE OF A COLDERTHANNORMAL SPRING MOREOVER UTILITIES AND BIG INDUSTRIAL USERS WHO NEED TO REPLENISH STORAGE ARE WAITING IN ANTICIPATION OF EVEN LOWER GAS PRICES THIS SUMMER 9305070017 930507 UNITED DAUGHTERS OF CONFEDERACY LOSE INSIGNIAPATENT FIGHT MOSELEYBRAUN TASTES VICTORY AS THURMOND GOES DOWN TO DEFEAT OVER A SYMBOL BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A SYMBOLIC BATTLE THAT PITTED NORTH AGAINST SOUTH OLD AGAINST NEW GOP AGAINST DEMOCRAT AND BLACK AGAINST WHITE THE SENATE JUDICIARY COMMITTEE VOTED NOT TO EXTEND THE DESIGN PATENT FOR THE UNITED DAUGHTERS OF THE CONFEDERACY INSIGNIA IT WAS A SWEET VICTORY FOR FIRSTYEAR SEN CAROL MOSELEYBRAUN AN ILLINOIS DEMOCRAT WHO IS THE SENATE'S ONLY BLACK MEMBER SHE OPPOSED AN EFFORT BY REPUBLICAN SEN STROM THURMOND A 39YEAR SENATE VETERAN FROM SOUTH CAROLINA TO EXTEND THE PATENT WITH A 123 BIPARTISAN VOTE THE COMMITTEE SUPPORTED A MOSELEYBRAUN AMENDMENT THAT EXCLUDED THE DAUGHTERS' PATENT RENEWAL FROM PENDING LEGISLATION THE PANEL ALLOWED AN EXTENSION FOR OLESTRA A PROCTER & GAMBLE CO PRODUCT DEVELOPED FOR USE IN LOWCALORIE SNACKS THE DAUGHTERS' INSIGNIA IS THE ORIGINAL FLAG OF THE CONFEDERACY IT CONSISTS OF THREE STRIPES RED WHITE AND RED AND A FIELD OF BLUE WITH SEVEN STARS IN A CIRCLE CONGRESS HAS RENEWED THE PATENT FOUR TIMES SINCE IT WAS GRANTED IN 1898 BUT THIS TIME SEN MOSELEYBRAUN OBJECTED ARGUING THAT CONGRESS SHOULDN'T GIVE ITS IMPRIMATUR TO A SYMBOL OF THE CONFEDERATE EFFORT IN THE CIVIL WAR A WAR STARTED AND PURSUED BY THE CONFEDERACY TO PRESERVE THE INSTITUTION OF SLAVERY AND TO TEAR APART THE UNION OUR FOUNDING FATHERS HAD ACHIEVED SEN THURMOND SAID THE EXTENSION SHOULD HAVE BEEN GRANTED BECAUSE THE DAUGHTERS' CHARITABLE WORK FOR THE GOOD OF ALL CITIZENS FAR OUTWEIGHS SENSITIVITIES THAT SOME MAY HAVE CONCERNING THEIR ORIGIN THE COMMERCE DEPARTMENT INDICATED THE DAUGHTERS WOULD BE ABLE TO PROTECT THEIR DESIGN THROUGH TRADEMARK REGISTRATION AND COMMON LAW COMMITTEE CHAIRMAN JOSEPH BIDEN D DEL SAID THERE IS NO EVIDENCE ANYONE EVER TRIED TO MISUSE THE DAUGHTERS' INSIGNIA SO THERE IS NO NEED FOR THE HEIGHTENED PROTECTION PROVIDED BY RENEWING THE PATENT SAYING THAT SEN MOSELEYBRAUN HAS PRICKED OUR CONSCIENCE SEN PAUL SIMON D ILL ADDED THAT WHEN HE SEES SOMEONE WEARING A PICTURE OF A CONFEDERATE FLAG ON A SHIRT OR DISPLAYING A CONFEDERATE FLAG IN THE BACK WINDOW OF A PICKUP TRUCK I KNOW I'M GOING TO GET SOME ANTIBLACK STATEMENT CRUDE OR SUBTLE THE COMMITTEE ALSO APPROVED WITH A 151 VOTE A BILL THAT WOULD OVERTURN A SUPREME COURT RULING THAT CRITICS SAID SHARPLY LIMITED THE CONSTITUTION'S GUARANTEE OF FREEDOM OF RELIGION UNDER THE RELIGIOUS FREEDOM RESTORATION ACT APPROVED BY THE COMMITTEE THE GOVERNMENT COULDN'T INTERFERE WITH THE PRACTICE OF RELIGION UNLESS THERE IS A COMPELLING GOVERNMENTAL INTEREST UNDER THE COURT RULING THAT STRICT SCRUTINY STANDARD DOESN'T HAVE TO BE MET IF THE GOVERNMENTAL ACTIONS HAVE GENERAL APPLICATION THE LEGISLATIVE EFFORT IS IN RESPONSE TO A 1990 HIGH COURT DECISION THAT SAID THE CONSTITUTIONAL GUARANTEE OF RELIGIOUS FREEDOM DIDN'T ALLOW MEMBERS OF A NATIVE AMERICAN CHURCH TO USE THE DRUG PEYOTE IN PRACTICING THEIR RELIGION 9305070015 930507 WHAT'S NEWS WORLDWIDE CLINTON URGED RELUCTANT ALLIES TO TAKE SWIFT ACTION AGAINST BOSNIAN SERBS DESPITE THE CONTINUING HESITATION OF THE ALLIES THERE WERE PREDICTIONS THAT FORCE WOULD BE USED THOUGH NOT IMMEDIATELY AFTER THE SERBS' REJECTION OF A UN PEACE PLAN THE US INTENDS TO SEEK A NEW RESOLUTION FROM THE UN SECURITY COUNCIL AND PERHAPS A VOTE FROM CONGRESS CONCERNING MILITARY STEPS MEANWHILE THE YUGOSLAV GOVERNMENT WHICH HAS BEEN THE MAIN BACKER OF BOSNIAN SERB FIGHTERS SAID IT WOULD SEVER ALL AID TO THE REBELS EXCEPT FOOD AND MEDICINE THE SECURITY COUNCIL VOTED UNANIMOUSLY TO DECLARE SAFE HAVENS IN SARAJEVO AND FIVE OTHER CITIES BUT THE COUNCIL DIDN'T BACK UP ITS RESOLUTION WITH FORCE ISRAEL GAVE THE PALESTINIANS ITS DRAFT OF A JOINT DECLARATION OF PRINCIPLES THAT COULD SERVE AS THE FRAMEWORK OF AN ACCORD ON PALESTINIAN SELFRULE SEPARATELY ISRAEL PROPOSED AN ACCORD WITH LEBANON CALLING FOR ISRAELI TROOPS TO LEAVE SOUTHERN LEBANON IF BORDER SECURITY MEASURES ARE TAKEN DIPLOMATS SAID THE SENATE VOTED 952 TO DEMAND THAT LOBBYISTS MAKE A FULL PUBLIC ACCOUNTING FOR MONEY SPENT ON GIFTS FOR LAWMAKERS THE MEASURE STILL HAS TO BE DEBATED IN THE HOUSE MEANWHILE CLINTON TODAY IS DUE TO UNVEIL HIS PLAN TO OVERHAUL CAMPAIGNFINANCE LAWS FIVE THOUSAND ANGRY FARMERS WARNED THEY WOULD GO TO WAR IN SOUTH AFRICA IF ANY MORE WHITE FARMERS WERE MURDERED AS A RESULT OF CALLS TO VIOLENCE BY BLACK LIBERATION MOVEMENTS VOWING TO RESIST BLACK RULE THE WHITE FARMERS MARCHED THROUGH THE TRANSVAAL TOWN OF POTCHEFSTROOM CARRYING SOUTH AFRICAN AND BOER HOMELAND FLAGS RUSSIA'S INTERIOR MINISTER TOLD HARDLINE DEMONSTRATORS THAT POLICE WOULD CRACK DOWN SUNDAY IF THE COMMUNISTS DEFIED A BAN ON PROTESTS IN MOSCOW HARDLINE LAWMAKERS ANGERED BY MAY DAY CLASHES IN THE CAPITAL LAST WEEKEND HAVE SUGGESTED THEY WILL IGNORE THE BAN AND HOLD A RALLY TO MARK THE WORLD WAR II VICTORY OVER THE NAZIS A GENE IN FIREFLIES MAY SOME DAY SPEED DIAGNOSES AND TREATMENTS OF PATIENTS INFECTED WITH DRUGRESISTANT STRAINS OF TUBERCULOSIS A TEAM OF RESEARCHERS INSERTED THE GENE INTO TB BACTERIA THAT WERE EXPOSED TO AN ANTIBIOTIC IF THE ANTIBIOTIC DIDN'T WORK THE BACTERIA EMITTED A YELLOWISHGREEN LIGHT TWO PEOPLE WERE SLAIN AND FOUR WOUNDED AS TWO MEN WITH GRUDGES AGAINST THE POSTAL SERVICE OPENED FIRE IN MICHIGAN AND CALIFORNIA POST OFFICES THE MICHIGAN GUNMAN AN EMPLOYEE KILLED ONE WOUNDED TWO AND KILLED HIMSELF THE CALIFORNIA MAN WHO HAD BEEN FIRED KILLED ONE PERSON AND WOUNDED TWO HIS MOTHER LATER WAS FOUND SLAIN A BOSTON JURY REJECTED CLAIMS BY THE WIDOW OF MARTIN LUTHER KING JR TO THE PAPERS THE CIVIL RIGHTS LEADER HAD GIVEN TO BOSTON UNIVERSITY THE JURY RULING IN A SUIT FILED BY CORETTA SCOTT KING FOUND THAT A 1964 LETTER HER HUSBAND SIGNED CONSTITUTED A BINDING CHARITABLE PLEDGE TO THE SCHOOL WHERE HE GOT HIS DOCTORATE IN THEOLOGY SPACE SHUTTLE COLUMBIA LANDED IN CALIFORNIA AFTER A 10DAY GERMANCHARTERED SPACELAB MISSION THAT STUDIED WEIGHTLESSNESS THE SHUTTLE HAD FIVE US AND TWO GERMAN ASTRONAUTS ABOARD A SECOND LEADING GERMAN POLITICIAN QUIT HIS POST WITHIN A WEEK TRANSPORTATION MINISTER KRAUSE ANNOUNCED HIS RESIGNATION AFTER THE DISCLOSURE THAT A MOVE HE MADE IN 1991 FROM BERLIN TO HIS HOMETOWN HAD BEEN PAID FOR WITH MINISTRY FUNDS PAKISTAN'S PRIME MINISTER MAZARI SAID HE HAS TAKEN STEPS INCLUDING FIRING HIS INTELLIGENCE CHIEF TO ENSURE THAT PAKISTAN ISN'T USED AS A TERRORIST BASE SEPARATELY A US OFFICIAL CITED MOUNTING INFORMATION THAT CHINA IS SHIPPING SURFACETOSURFACE MISSILES TO PAKISTAN FEDERAL HEALTH OFFICIALS ANNOUNCED THAT THE RATE OF BABIES REPORTED BORN WITH HEALTH PROBLEMS BECAUSE THEIR MOTHERS DRANK ALCOHOL DURING PREGNANCY INCREASED THREEFOLD FROM 1979 THROUGH 1992 BUT AN OFFICIAL SAID THE NUMBERS PROBABLY REFLECT BETTER REPORTING OF FETAL ALCOHOL SYNDROME BY DOCTORS A SIXTH PERSON WAS CHARGED IN THE WORLD TRADE CENTER BOMBING AHMAD AJAJ WAS CHARGED WITH CONSPIRACY IN THE FEB 26 BLAST THE FEDERAL COMPLAINT CAME A DAY AFTER AJAJ'S ATTORNEY PROTESTED THAT HE HAD BEEN HELD FOR TWO MONTHS WITHOUT CHARGES 9305070014 930507 KLUTZY SCUBA DIVERS LOVE THE CORAL REEFS A BIT TOO VIGOROUSLY THEIR AWKWARD MOVES CAUSE BREAKAGE BUT TOUR PEOPLE CALL DAMAGE EXAGGERATED BY JAMES P STERBA STAFF REPORTER OF THE WALL STREET JOURNAL GRAND CAYMAN BRITISH WEST INDIES KERPLOP DIVER NO 1 FESTOONED WITH FINS HOSES GAUGES A MASK A LYCRA BODYSTOCKING AND A BULKY TANK OF COMPRESSED AIR AND LOOKING LIKE SOME HIGHTECH MUTANT DAYGLO FROG LEAPS OFF THE BOAT INTO THE SEA DIVERS NO 2 THROUGH 16 SIMILARLY ATTIRED SCUBA NOVICES FOLLOW THEY HAVE PAID 55 EACH TO DIVE DOWN TO THE CORAL GARDENS BELOW LITTLE DO THESE VACATIONERS KNOW AS THEY SINK MERRILY INTO THE MURK THAT THEY THEMSELVES ARE BECOMING THE LATEST MONSTERS OF THE REEF AS UNLIKELY AS IT MAY HAVE SEEMED 50 YEARS AGO WHEN EMILE GAGNAN AND JACQUESIVES COUSTEAU DEVELOPED THE BREATHING CONTRAPTION USED IN SCUBA SELFCONTAINED UNDERWATER BREATHING APPARATUS DIVING SOME ECOLOGISTS AND MARINE SCIENTISTS ARE SAYING SOME OF THE WORLD'S MOST GORGEOUS REEFS ARE BEING TRASHED BY GROWING SWARMS OF KLUTZY DIVERS BEFORE ONE OF THE DIVERS SINKS THIS MORNING FOR EXAMPLE HIS WEIGHT BELT UNBUCKLES HE BOBS LIKE A CORK ON THE SURFACE WHILE 10 POUNDS OF LEAD DROP CRUNCHING LIKE A SLEDGEHAMMER ON THE CORAL BELOW MINUTES LATER ANOTHER DIVER WHACKS A CORAL SEA FAN WITH HER FOOT FIN KNEES FINS AND GAUGES BUMP THE REEF AS THE MORE AWKWARD DIVERS FIGHT TO AVOID SINKING ANOTHER DIVER WEARING GLOVES GRABS A CORAL PINNACLE TO KEEP STEADY WHILE SNAPPING PHOTOGRAPHS ANOTHER GLIDES OVER THE REEF NOT KNOWING THAT A FLASHLIGHT DANGLING FROM HIS BELT IS CLUNKING FROM CORAL TO CORAL MINOR MOLESTATION MAYBE BUT THE SLOWGROWING REEFS ARE NOT ONLY FRAGILE THEY'RE RELATIVELY RARE ALTHOUGH OCEANS COVER 701 OF THE EARTH'S SURFACE CORAL REEFS OCCUPY ONLY ABOUT 017 OF THE SEA ROUGHLY 238000 SQUARE MILES OF TROPICAL SHALLOWS AN AREA SLIGHTLY LARGER THAN SPAIN AND PORTUGAL COMBINED AND THE DAMAGE CAUSED BY INEPT DIVERS ADDS UP CORAL REEFS WHICH HAVE WITHSTOOD NATURE'S MAELSTROMS FOR EONS ARE NOW BEING ASSAULTED BY WHOLE FLEETS OF POORLY TRAINED ECOTOURISTS UNWITTINGLY DAMAGING SOME OF THE BILLIONS OF TINY ANIMALS THAT MAKE UP THE REEFS LURING FISH BEFORE THEIR CAMERAS WITH AEROSOL CANS OF CHEESE SPREAD HOT DOGS AND FROZEN PEAS AND AS A HEADLINE IN SEA FRONTIERS MAGAZINE PUT IT LOVING THE REEF TO DEATH DIVERS ARE DEFINITELY PART OF THE PROBLEM SAYS JEANMICHEL COUSTEAU WHO RUNS THE COUSTEAU SOCIETY AN ENVIRONMENTALPROTECTION GROUP NAMED AFTER HIS FATHER JACQUES BUT DIVER DAMAGE SHOULD BE PUT INTO PERSPECTIVE HE ADDS ON A GLOBAL SCALE HE CONTENDS IT IS INSIGNIFICANT COMPARED WITH OTHER HUMAN ASSAULTS SUCH AS SOIL RUNOFFS FROM DEFORESTATION AGRICULTURAL CHEMICALS SEWAGE TOXIC WASTE OVERFISHING AND DAMAGE FROM BOAT ANCHORS FROM HUMBLE ORIGINS IN THE FRIGID MARNE RIVER NEAR PARIS IN JANUARY 1943 SCUBA DIVING GREW IN FITS AND SPURTS UNTIL THE 1980S WHEN RECREATIONAL DIVERS BEGAN TO MULTIPLY LIKE GUPPIES SOME IN THE INDUSTRY ESTIMATE THE WORLD'S DIVERS AT FOUR MILLION AND TALK OF 10 MILLION BY THE END OF THE DECADE OTHER INDUSTRY INSIDERS SAY THESE BIG NUMBERS ARE FISHY NOTING THAT MOST PEOPLE WHO ENROLL IN DIVER COURSES QUIT THE SPORT AFTER A FEW DIVES IN ANY CASE THE NUMBER TAKING THE COURSES IS WAY UP ACCORDING TO THE PROFESSIONAL ASSOCIATION OF DIVING INSTRUCTORS THE LARGEST OF FIVE MAJOR US CERTIFICATION ORGANIZATIONS LAST YEAR IT SAYS IT TRAINED 515000 DIVERS WORLDWIDE UP FROM 3226 IN 1967 ITS FIRST YEAR THE NATIONAL ASSOCIATION OF UNDERWATER INSTRUCTORS SAYS IT TRAINED ANOTHER 100000 LAST YEAR THE NATIONAL ASSOCIATION OF SCUBA DIVING SCHOOLS 25000 AND THE YMCA 16000 SCUBA SCHOOLS INTERNATIONAL KEEPS ITS NUMBERS SECRET AND BIG MONEY IS INVOLVED ABOUT 15 BILLION OF DIVING EQUIPMENT INSTRUCTION AND DIVING VACATIONS WAS SOLD LAST YEAR BY SOME 2100 RETAIL DIVE SHOPS AND DIVETRAVEL SPECIALISTS IN THE US ALONE ACCORDING TO WILLIAM CLINE GROUP A DALLAS ADVERTISING MARKETING AND RESEARCH FIRM THE CLINE GROUP WHOSE OPTIMISTIC DATA HELPED ENCOURAGE RODALE PRESS INC TO START SCUBA DIVING MAGAZINE LAST YEAR ALSO SAYS SOME 600 SPECIALIZED RESORTS NOW CATER TO DIVERS IN TROPICAL WATERS AROUND THE WORLD DOZENS OF SPECIALLY EQUIPPED LIVEABOARD CHARTER VESSELS TAKE DIVERS TO REMOTE WATERS OF THE CARIBBEAN PACIFIC AND INDIAN OCEANS IN JUST TWO YEARS THE LIVEABOARD CHARTERS PLYING THE GULF OF AQABA AND NORTHERN RED SEA INCREASED TO 17 FROM SIX MEANWHILE RESORT HOTEL BEDS IN SHARM EL SHEIK A DUSTY DESERT TOWN ON THE SOUTHERN TIP OF THE SINAI PENINSULA HAVE JUMPED TO 3000 FROM 600 AND AUTHORITIES HAVE LIMITED THE NUMBER OF DIVERS VISITING THE REEFS AT NEARBY RAS MUHAMMED FIJI HAS GONE FROM LESS THAN A DOZEN DIVE RESORTS TO MORE THAN 40 IN FIVE YEARS CAIRNS THE MAIN JUMPINGOFF POINT FOR AUSTRALIA'S GREAT BARRIER REEF HAD THREE DIVE SHOPS AND FOUR LIVEABOARD DIVE BOATS EIGHT YEARS AGO TODAY IT HAS 36 DIVE SHOPS AND NEARLY 50 LIVEABOARDS SCUBA DIVING BECAME POPULAR AFTER SHEDDING A MACHO DANGERISOURBUSINESS IMAGE AS THE KILLTHEMBEFORETHEYKILLUS MONSTERS OF HOLLYWOOD POTBOILERS FADED INTO THE PAST JAWS THE 1975 SHARK MOVIE PLUNGED THE INDUSTRY INTO RECESSION MOST TRAINING AGENCIES MEANWHILE STREAMLINED THEIR SCUBA COURSES DUMPING ARDUOUS MILITARYSTYLE SURVIVAL SKILLS VOILA DIVING EMERGED AS FUN EASY AND HEALTHY FAMILY RECREATION GREAT EXERCISE ECOLOGICALLY CORRECT TAKE ONLY PICTURES LEAVE ONLY BUBBLES AT ONE WITH NATURE AMID SPECTACULAR CORAL REEFS AND WONDROUS FISH AND ANIMALS THE SPORT ALSO EMBRACED FASHION WITH DESIGNER WETSUITS AND UNDERWATER MAKEUP AND LUXURY WITH PRICEY RESORTS AND YACHTS MOREOVER IT BEGAN TO BE PERCEIVED AS SAFE DESPITE THE GROWING NUMBERS OF DIVERS DUKE UNIVERSITY'S DIVERS ALERT NETWORK SAYS JUST OVER 90 FATALITIES OF AMERICANS WERE REPORTED TO IT LAST YEAR DOWN FROM 116 IN 1978 BUT INJURIES HAVE RISEN NEARLY 1000 AMERICANS WERE REPORTED HURT LAST YEAR UP FROM 400 TO 500 A YEAR IN THE EARLY 1980S IN ADDITION SOME ACCIDENTS AREN'T REPORTED HERE IN THE CAYMANS DIVERS AND SNORKELERS CONTRIBUTE THE BULK OF THE 280 MILLION OF ANNUAL TOURIST REVENUES ACCORDING TO RUDI SELZER THE DIRECTOR OF TOURISM THAT'S MORE THAN THE OFFSHOREBANKING BUSINESS GENERATES THE THREE ISLANDS GRAND CAYMAN LITTLE CAYMAN AND CAYMAN BRAC HAVE 37 DIVE OPERATORS THAT ON AN AVERAGE DAY FERRY AN ESTIMATED 870 DIVERS TO THE REEFS WHERE THEY DIVE TWO OR THREE TIMES DAILY THAT'S NEARLY 800000 DIVES A YEAR AND SOME OPERATORS THINK THE REAL NUMBER IS DOUBLE THAT STUDIES SUGGEST THAT AN AVERAGE DIVER INADVERTENTLY TOUCHES GRABS BUMPS OR SCRAPES CORAL OR OTHER PARTS OF THE REEF 10 TO 15 TIMES EVERY HALFHOUR ONE REASON MORE AND MORE DIVERS ARE SHOWING UP WITH JUST FIVE OR SIX HOURS OF SWIMMINGPOOL INSTRUCTION AND LESS AND LESS DIVING SKILL AND SKILL IS IMPORTANT SCUBA DIVING AMOUNTS TO SWIMMING IN NEARWEIGHTLESS CONDITIONS SOMETHING LIKE SPACE WALKING MASTERING BALANCE CONTROL AND BUOYANCY SKILLS USING AIR AND WEIGHT TO HOVER GRACEFULLYTAKES PRACTICE EVERYBODY IS GOING TO TOUCH SOME CORAL THEY CAN'T HELP IT SAYS STEVE MARSHALL A LOCAL INSTRUCTOR BUT TOO MANY PEOPLE COME HERE NOW WITH POOR BUOYANCY SKILLS PHOTOGRAPHERS ARE THE WORST IF I HAD MY WAY I WOULDN'T ALLOW A DIVER TO CARRY A CAMERA UNTIL THEY'VE DONE AT LEAST 100 DIVES THE PRICE OF INEPTITUDE IS PREDICTABLE EVERY YEAR YOU SEE THE REEFS BEATEN DOWN A LITTLE MORE SAYS TERRY THOMPSON A 45YEAROLD GUIDE AND INSTRUCTOR WHEN HE GETS A POORLY TRAINED GROUP HE HEADS TO REEFS ALREADY BEATEN UP SAVING MORE PRISTINE ONES FOR BETTER DIVERS THE CAYMANS WHICH THIS WEEK HOSTED A REEFPROTECTION CONFERENCE FOR THE 30MEMBER CARIBBEAN TOURIST ORGANIZATION ALSO HAVE EXTENSIVE MARINE PARKS AND SOME OF THE STRONGEST MARINE ENVIRONMENTAL RULES IN THE AREA TO PREVENT DAMAGE FROM DIVEBOAT ANCHORS HUNDREDS OF PERMANENT MOORINGS HAVE BEEN SET ALONG THE REEFS NEVERTHELESS DAVID VOUSDEN THE GOVERNMENT'S CHIEF ENVIRONMENTALENFORCEMENT OFFICER SAYS ALL OUR SECTIONS ARE UNDERSTAFFED ENFORCEMENT IS INADEQUATE THE LOCAL DIVE OPERATORS' GROUP TELLS GUIDES TO WARN DIVERS AGAINST COLLECTING THINGS BELOW AND TO BE CAREFUL NEAR THE CORAL SOME URGE DIVERS NOT TO WEAR GLOVES WITHOUT THEM THEY ARE LESS LIKELY TO GRAB CORAL AND DAMAGE IT SEVERAL DIVE SHOPS HAVE STOPPED SELLING GLOVES DIVE OPERATORS INSIST THAT STORMS SHIP ANCHORS AND CHAINS FISHERMEN AND REALESTATE DEVELOPERS DO FAR MORE DAMAGE TO THE REEFS THAN DO DIVERS ONE SUGGESTS THAT A DIVER DOES MORE DAMAGE FLUSHING A HOTEL TOILET THAN OUT ON THE REEF DIVER DAMAGE IS OVERSTATED SAYS RON KIPP A FORMER INTERNATIONAL BUSINESS MACHINES CORP MANAGER WHO BOUGHT A DIVE OPERATION IN 1980 AND GROSSED 19 MILLION LAST YEAR I WORRY ABOUT PEOPLE WHO WANT TO KEEP DIVERS OUT OF THE WATER TO KEEP IT FUN FOR SPONGES AND SNAILS AS FOR FEEDING FISH PHOTO INSTRUCTORS SAY IT MAY BE UNNATURAL BUT CERTAINLY NOT AS BAD AS SPEARING THEM A COMMON PRACTICE BEFORE SPEARFISHING WITH SCUBA GEAR WAS OUTLAWED IN MOST PLACES CATHY CHURCH A FORMER CALIFORNIA SCIENCE TEACHER WHO HAS TAUGHT UNDERWATER PHOTOGRAPHY HERE SINCE 1972 SAYS FEEDING FISH AEROSOL CHEESE DOESN'T HARM THEM BUT IF IT BOTHERS PEOPLE THEY CAN PAY 375 FOR TWO OUNCES OF NUTRITIONALLY BALANCED FOOD FOR CONTROLLED RECREATIONAL FEEDING NONPOLLUTING AND BIODEGRADABLE INGREDIENTS MARINE BYPRODUCTS SOY MEAL GRAIN PROTEIN AND VITAMINS ACCORDING TO THE PACKAGE BESIDES MS CHURCH SAYS IT ISN'T CALLED FISH FEEDING ANYMORE IT'S A SUBSIDIZED PREDATOR RELATIONSHIP 9305070013 930507 BEN & JERRY'S POSTS 24 PROFIT INCREASE ON 17 RISE IN SALES WATERBURY VT BEN & JERRY'S HOMEMADE INC POSTED A 24 JUMP IN NET INCOME ON A 17 SALES RISE IN THE QUARTER ENDED MARCH 27 REFLECTING STRONG GROWTH IN THE COMPANY'S NEW FROZENYOGURT LINE A SPOKESMAN FOR THE ICE CREAM MAKER SAID FROZEN YOGURT MADE UP 20 OF FIRSTQUARTER SALES UP FROM 15 IN THE FOURTH QUARTER AND 13 IN THE YEARAGO FIRST QUARTER THE NEW LINE WAS INTRODUCED IN 13 MAJOR METROPOLITAN MARKETS LAST YEAR AND IS NOW ENTERING SECONDARY MARKETS NET FOR THE 13 WEEKS WAS 15 MILLION OR 21 CENTS A SHARE COMPARED WITH YEARAGO NET OF 12 MILLION OR 20 CENTS A SHARE ON FEWER SHARES SALES ROSE TO 321 MILLION FROM 273 MILLION A YEAR AGO CHUCK LACY BEN & JERRY'S PRESIDENT SAID SALES GROWTH HAS MODERATED FROM THE RECORDSETTING LEVELS OF THE FIRST THREE QUARTERS OF 1992 WHEN THE COMPANY'S RESULTS WERE RISING SHARPLY AS A RESULT IN LARGE PART OF THE INTRODUCTION OF CHOCOLATECHIP COOKIE DOUGH ICE CREAM THE COMPANY'S BIGGEST HIT A SPOKESMAN SAID THE FLAVOR'S GROWTH HAS BEGUN TO STABILIZE AND NOW STANDS AT 17 OF SALES COOKIE DOUGH WAS THE ICE CREAM EQUIVALENT OF MICROSOFT WINDOWS IN SOFTWARE THE SPOKESMAN SAID IT CHANGED THE WHOLE INDUSTRY LANDSCAPE HE SAID THE COMPANY HAS A NUMBER OF PROMISING FLAVORS IN DEVELOPMENT BUT I'M NOT FORECASTING ANOTHER COOKIE DOUGH MR LACY SAID THAT IN THE COMPETITIVE ENVIRONMENT IN WHICH WE FIND OURSELVES WE ARE CONTINUING TO INTRODUCE EUPHORIC NEW FLAVORS SUCH AS CHOCOLATE PEANUT BUTTER COOKIE DOUGH ICE CREAM APPLE PIE FROZEN YOGURT MADE WITH APPLE PIE INGREDIENTS FROM THE LA SOUL BAKERY IN RED BANK NJ AND OUR LONGAWAITED WAVY GRAVY A VANILLA ICE CREAM WITH A FUDGEHAZELNUT SWIRL AND BRAZIL NUTS 9305070012 930507 WHAT'S NEWS BUSINESS AND FINANCE TRANSPORTATION OFFICIALS IN THE CLINTON ADMINISTRATION ARE CONSIDERING A BAN ON SALES BY US AIRLINES OF INTERNATIONAL AIR ROUTES SUCH A MOVE WOULD TEND TO HURT FINANCIALLY STRAPPED CARRIERS WHICH HAVE SOLD ROUTES TO RAISE CASH HEALTHIER AIRLINES COULD BENEFIT FROM THE CHANGE BIG RETAILERS POSTED DISAPPOINTING SALES FOR APRIL AS COOL WEATHER AND SMALL TAX REFUNDS DISCOURAGED CONSUMERS FROM BUYING SPRING GOODS SELLERS OF APPAREL ESPECIALLY MEN'S CLOTHING WERE AMONG THE HARDEST HIT LABOR PRODUCTIVITY SLIPPED AT A 01 ANNUAL RATE IN THE FIRST QUARTER THE FIRST DECLINE IN TWO YEARS REFLECTING A DROP IN CONSUMER DEMAND COUPLED WITH RISING RETAIL EMPLOYMENT TURNER BROADCASTING AND ITS TWO MAJOR SHAREHOLDERS TIME WARNER AND TELECOMMUNICATIONS TABLED TALKS TO DIVIDE UP THE CABLE TV COMPANY LARGELY BECAUSE OF REGULATORY UNCERTAINTIES PEOPLE CLOSE TO TURNER SAID REPUBLICAN MODERATES IN THE SENATE ARE PRESSING THE CLINTON ADMINISTRATION TO PARE THE TAXES IN ITS DEFICITREDUCTION PLAN AS A WAY OF BUILDING BIPARTISAN SUPPORT FOR THE PRESIDENT'S AMBITIOUS HEALTHCARE INITIATIVES BUSINESS EXECUTIVES GAVE A GLOOMY APPRAISAL OF THE ECONOMY AND SAID THEIR ANXIETY IS LARGELY THE RESULT OF CLINTON'S TAX AND HEALTHCARE PLANS A BUSINESS GROUP ISSUED A REPORT PREDICTING 3 ECONOMIC GROWTH THIS YEAR RJR NABISCO IS DISCONTINUING A MONTHOLD DISCOUNT ON ITS CHEAPEST CIGARETTES BACKING AWAY FROM A PRICE WAR WITH RIVAL PHILIP MORRIS A CANADIANUS REVIEW PANEL RULED THE US MUST RECONSIDER MUCH OF ITS DECISION TO IMPOSE PENALTIES ON CANADIAN SOFTWOOD LUMBER IMPORTS US DEFENSE COMPANIES OFTEN OFFER DIRECT FINANCIAL ASSISTANCE TO HELP FOREIGN COMPANIES EXPORT MORE GOODS TO THE US AND ELSEWHERE CONGRESSIONAL AUDITORS FOUND THE PRACTICE USED TO PROMOTE SALES OF WEAPONS OVERSEAS IS RAISING CONCERN IN WASHINGTON THE BANKING INDUSTRY IS IN A LONGTERM DECLINE DESPITE ITS CURRENT ROBUST HEALTH GREENSPAN SAID THE FED CHIEF CITED THE FACT THAT COMPANIES ARE INCREASINGLY BORROWING DIRECTLY FROM INVESTORS RATHER THAN FROM BANKS NATIONSBANK IS SEEKING THE FED'S APPROVAL TO UNDERWRITE CORPORATE BONDS AND STOCKS IN A BID TO JOIN THE FEW US BANKS WITH SUCH POWERS AND BECOME THE ONLY SUCH SOUTHERN BANK CHRYSLER NAMED ITS VICE PRESIDENT FOR PERSONNEL GARY VALADE TO BE THE CAR MAKER'S CHIEF FINANCIAL OFFICER HE SUCCEEDS JEROME YORK WHO LEFT TO BECOME IBM'S TOP FINANCE EXECUTIVE VEHICLE SALES IN JAPAN SANK 11 IN APRIL REFLECTING SPECIAL FACTORS BUT ALSO SHOWING THAT THE NATION'S ECONOMIC RECOVERY IS UNCERTAIN ANALYSTS SAID A QUICK SALES UPTURN ISN'T LIKELY THE HOUSE BANKING COMMITTEE APPROVED A MEASURE TO PROVIDE BETWEEN 183 BILLION AND 343 BILLION TO COMPLETE THE SAVINGSANDLOAN RESCUE LESLIE FAY APPOINTED ARTHUR ANDERSEN AS ITS INDEPENDENT AUDITOR AFTER ANOTHER AUDITING FIRM BDO SEIDMAN WITHDREW IN THE WAKE OF AN ACCOUNTING SCANDAL AT THE CLOTHING MAKER AMERICAN EXPRESS AGREED TO ACQUIRE A SCANDINAVIAN TRAVEL AGENCY TO GAIN A STRONGER FOOTHOLD IN THE EUROPEAN BUSINESS TRAVEL MARKET SEPARATELY THE COMPANY IS LAUNCHING A CHARGE CARD FOR PEOPLE 62 AND OLDER GOLD FUTURES CLIMBED 280 TO 35830 AN OUNCE MARKING THEIR HIGHEST PRICE SINCE JULY OF LAST YEAR BONDS LEHMAN BROTHERS TREASURY INDEX 513297 OFF 370 COMMODITIES OIL 2047 A BARREL UP ONE CENT DOW JONES FUTURES INDEX 12172 OFF 047 SPOT INDEX 12053 UP 005 9305070011 930507 INTERNATIONAL AUTO REGISTRATIONS CONTINUED TO SLUMP IN EUROPE LAST MONTH BONN NEWCAR REGISTRATIONS CONTINUED TO PLUNGE ACROSS EUROPE LAST MONTH AS A RECESSION IN MOST MARKETS KEPT CONSUMERS AWAY FROM AUTO SHOWROOMS IN APRIL CAR REGISTRATIONS IN THE EUROPEAN COMMUNITY WERE OFF 183 FROM A YEAR EARLIER ACCORDING TO PROVISIONAL FIGURES RELEASED BY THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION AN INDUSTRY LOBBYING GROUP IN BRUSSELS THE DECLINES WERE LARGER THAN MANY ANALYSTS HAD EXPECTED AND BOLSTER THE VIEW THAT EUROPE'S AUTO INDUSTRY IS FACING ITS LEANEST YEAR IN RECENT MEMORY THESE ARE VERY HEFTY DECLINES AND WILL CERTAINLY FORCE A LOT OF US TO REEXAMINE OUR ESTIMATES SAID BOB BARBER AUTO ANALYST AT JAMES CAPEL & CO IN LONDON AMONG EUROPE'S FIVE BIGGEST CAR MARKETS ITALY SPAIN BRITAIN FRANCE AND GERMANY ONLY BRITAIN IS SHOWING SIGNS OF LIFE BUT EVEN BRITISH CAR REGISTRATIONS WERE OFF SLIGHTLY LAST MONTH BY 08 ACCORDING TO THE AUTO ASSOCIATION MR BARBER SAID THE DECLINE WAS A FLUKE DUE TO UNUSUAL CIRCUMSTANCES A YEAR AGO IN GERMANY NEWCAR REGISTRATIONS IN APRIL DROPPED 177 FROM A YEAR AGO BUT HANSJOACHIM PILZ AUTO ANALYST AT MM WARBURG BANK INVESTMENT RESEARCH IN HAMBURG SAID THIS INDICATES THAT GERMANY'S SHARP TUMBLE IN NEWCAR REGISTRATIONS IS FINALLY LEVELING OFF ANOTHER MARKET DECLINING SHARPLY IS ITALY WHERE THE AUTO ASSOCIATION SAYS NEWCAR REGISTRATIONS FELL 281 LAST MONTH FROM APRIL 1992 ANALYSTS SAY PART OF ITALY'S PROBLEM IS ITS POLITICAL TURBULENCE WHICH TENDS TO DAMP CONSUMER CONFIDENCE 9305070010 930507 PEPPERAND SALT NO MATTER PAL HOW TEMPTY HE THEN AND THERE WILL DRINK IT THE ONLY PLACES YOU CAN PARK AS LONG AS YOU WANT TO YOU DON'T WANT TO 9305070009 930507 SOLO SERVE APRIL SALES ROSE 22 SAN ANTONIO SOLO SERVE CORP SAID SALES FOR THE FOUR WEEKS ENDED SATURDAY INCREASED 22 TO 125 MILLION FROM 122 MILLION A YEAR AGO THE OFFPRICE RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR DECREASED 125 FOR THE 13 WEEKS ENDED SATURDAY SALES INCREASED 102 TO 383 MILLION FROM 348 MILLION COMPARABLESTORE SALES FELL 74 9305070008 930507 WHO'S NEWS GUILFORD MILLS INC GUILFORD MILLS INC GREENSBORO NC STIG KRY FORMER CHIEF EXECUTIVE OF KURT SALMON ASSOCIATES IN ATLANTA AND TERRENCE GEREMSKI VICE PRESIDENT CHIEF FINANCIAL OFFICER AND TREASURER OF GUILFORD WERE ELECTED TO THE BOARD OF THIS FABRIC SUPPLIER THE APPOINTMENT OF MR KRY 64 YEARS OLD AND MR GEREMSKI 45 BOOSTS THE NUMBER OF DIRECTORS TO 10 IN ADDITION JOHN EMRICH 48 VICE PRESIDENT OF PLANNING WAS NAMED SENIOR VICE PRESIDENT AND PRESIDENT OF THE COMPANY'S AUTOMOTIVE BUSINESS UNIT 9305070007 930507 AUDIO/VIDEO AFFILIATES SALES RISE DAYTON OHIO AUDIO/VIDEO AFFILIATES INC SAID SALES AT STORES OPEN AT LEAST A YEAR ROSE 5 IN APRIL TO 135 MILLION FROM 128 MILLION IN APRIL 1992 TOTAL SALES DURING APRIL ROSE 21 TO 159 MILLION FROM 131 MILLION A YEAR EARLIER THE ELECTRONICS AND APPLIANCES RETAILER SAID TOTAL SALES DURING ITS FIRST QUARTER ENDED APRIL 30 WERE 508 MILLION UP 22 FROM 418 MILLION A YEAR EARLIER WHILE COMPARABLE STORE SALES ROSE 7 9305070006 930507 INTERNATIONAL BRIEF BANK OF SCOTLAND PRETAX NET FELL 11 IN YEAR AS BADDEBT PROVISION ROSE BANK OF SCOTLAND ANNOUNCED A 11 DROP IN ITS PRETAX PROFIT FOR THE YEAR ENDED FEB 28 AS PROVISIONS FOR BAD DEBTS JUMPED BY 47 PRETAX PROFIT TOTALED 1253 MILLION 1961 DOWN FROM 1407 MILLION LOANLOSS CHARGES ROSE TO 3717 MILLION FROM 2528 MILLION THE BANK'S PRETAX PROFIT FIGURE WAS SMALLER THAN ANALYSTS HAD EXPECTED AND THE 3717 MILLION SET ASIDE FOR BAD DEBTS WAS MORE THAN THAN THE 274 MILLION TO 325 MILLION PREDICTED EARLIER DESPITE THE DROP IN PROFIT THE BANK IS PROPOSING TO RAISE ITS FULLYEAR DIVIDEND BY 51 TO 457 PENCE FROM 435 PENCE 9305070005 930507 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ASSOCIATES CORP 300 MILLION OF NOTES DUE FEB 15 1996 PRICED AS 4 1/2 S AT 99699 TO YIELD 462 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 045 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC ASSOCIATES IS A UNIT OF FORD MOTOR CO DOLE FOOD CO 300 MILLION OF SENIOR NOTES DUE MAY 15 2003 PRICED AS 7S AT 99467 TO YIELD 7075 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 1175 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BT SECURITIES STUDENT LOAN MARKETING ASSOCIATION 500 MILLION OF NOTES DUE MAY 14 1996 PRICED TO FLOAT WEEKLY 018 PERCENTAGE POINT ABOVE THE THREEMONTH TREASURY BILL ACCORDING TO MCM CORPORATEWATCH THE ISSUE WHICH PAYS INTEREST QUARTERLY IS NONCALLABLE THE NOTES WERE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO TNT FREIGHTWAYS CORP 100 MILLION OF NOTES DUE MAY 1 2000 PRICED AS 6 5/8 S AT 99375 TO YIELD 6738 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 122 PERCENTAGE POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TRANSPORTACION MARITIMA MEXICANA SA 200 MILLION OF NOTES DUE MAY 15 2003 PRICED AS 9 1/4 S AT 99774 TO YIELD 9285 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED AT A SPREAD OF 3375 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE THE SIZE OF THE ISSUE WAS INCREASED FROM AN INITIAL 150 MILLION RATED BA2 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO EW BLANCH HOLDINGS INC INITIAL OFFERING OF 4343000 COMMON SHARES PRICED AT 1850 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INFINITY BROADCASTING CORP 3246695 CLASS A COMMON SHARES PRICED AT 3325 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS MITCHELL ENERGY & DEVELOPMENT CORP 6 MILLION CLASS B NONVOTING SHARES PRICED AT 21875 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO VORNADO REALTY TRUST 5 MILLION COMMON SHARES PRICED AT 3550 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STERNS & CO THE OFFERING SERIES 1537 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6625 AND WEIGHTED AVERAGE REMAINGING TERM TO MATURITY OF 148 YEARS CENTRAL LAKE ILL COUNTY JOINT ACTION WATER AGENCY 815 MILLION WATER REFUNDING REVENUE BONDS SERIES 1993 PRICED BY A MORGAN STANLEY & CO GROUP TO YIELD FROM 25 IN 1994 TO 58 IN 2020 THE BONDS ARE FGICINSURED AND RATED TRIPLEA BY BOTH MOODY'S AND S&P CHICAGO SCHOOL FINANCE AUTHORITY 211 MILLION UNLIMITED TAX GENERAL OBLIGATION SCHOOL ASSISTANT REFUNDING BONDS APPARENTLY WON BY A JP MORGAN SECURITIES GROUP THE GROUP WON WITH A BID SETTING THE TRUE INTEREST COST AT 5179 FOR BONDS DUE 19942006 AND AT 5296 FOR BONDS DUE 20072009 THE BONDS ARE FGICINSURED AND RATED TRIPLEA BY BOTH MOODY'S AND S&P BOSKALIS NV NETHERLANDS 80 MILLION DUTCH GUILDERS OF 5 1/4 CONVERTIBLE EUROBONDS DUE JUNE 1 2000 AT ISSUE PRICE PAR VIA ABN AMRO BANK NV BONDS CONVERTIBLE INTO BOSKALIS ORDINARY SHARES AT 345 GUILDERS PER SHARE A 1538 PREMIUM ABOVE WEDNESDAY'S CLOSING SHARE PRICE CALLABLE FROM JAN 1 1995 AT PAR BUT NOT BEFORE MAY 31 1997 UNLESS SHARES TRADE AT 130 ABOVE CONVERSION PRICE FOR 25 DAYS FEES 2375 POINTS CAISSE FRANCAISE ET DEVELOPMENT FRANCE 500 MILLION FRENCH FRANCS OF 3 3/4 EUROBONDS WITH BOND WARRANTS ATTACHED DUE JUNE 16 2003 AT ISSUE PRICE 9991 VIA JP MORGAN ET COMPAGNIE SA BONDS WITH WARRANTS REOFFERED AT 9941 EACH WARRANT IS EXERCISABLE FROM JUNE 16 1993 TO JUNE 29 1994 TO BUY FRENCH TREASURY'S 8 NOTE DUE 2003 FEES NOT DISCLOSED EUROFIMA SUPRANATIONAL 500 MILLION MARKS OF 6 1/4 EUROBONDS DUE MAY 28 1998 AT ISSUE PRICE 10135 VIA DRESDNER BANK AG YIELD 632 AT BREAKEVEN PRICE FOR COMANAGING BANKS SPREAD 12 BASIS POINTS ABOVE THE COMPARABLE BUND FEES 1625 POINTS IMI BANK INTERNATIONAL CAYMAN ISLANDS ITALY PARENT 100 MILLION OF FLOATING RATE EURONOTES DUE JUNE 1998 AT FIXED REOFFER PRICE 9925 VIA MORGAN STANLEY INTERNATIONAL INTEREST PAID SEMIANNUALLY FLOATS AT 0375 POINT ABOVE SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS CALLABLE FROM JUNE 1995 AND EACH SUBSEQUENT INTEREST PAYMENT DATE AT PAR GUARANTOR ISTITUTO MOBILARE ITALIANO SPA FEES 025 POINTS NISSAN INTERNATIONAL FINANCE NETHERLANDS BV JAPAN PARENT 100 MILLION OF 5 5/8 EUROBONDS DUE MAY 20 1998 AT ISSUE PRICE PAR VIA IBJ INTERNATIONAL LTD KEEPWELL AGREEMENT WITH PARENT NISSAN MOTOR CO FEES NOT DISCLOSED SMITHKLINE BEECHAM CAPITAL PLC UK 100 MILLION OF 7 3/4 EUROBONDS DUE JUNE 3 1998 AT ISSUE PRICE 101095 VIA LEHMAN BROTHERS INTERNATIONAL LTD REOFFERED AT 9952 TO YIELD 787 SPREAD 64 BASIS POINTS ABOVE 7 1/4 GILT DUE MARCH 1998 GUARANTOR SMITHKLINE BEECHAM PLC FEES 1875 POINTS SWEDISH EXPORT CREDIT SWEDEN 150 BILLION LIRE OF 10 3/4 EUROBONDS DUE JUNE 9 2000 AT ISSUE PRICE 101 3/8 VIA CREDITO ITALIANO REOFFERED AT 99 3/4 TO YIELD 108 FEES 1875 POINTS 9305070004 930507 INTERNATIONAL SOUTH KOREAN BANKRUPTCIES RISE SEOUL SOUTH KOREA THE NUMBER OF SOUTH KOREAN COMPANIES FILING FOR BANKRUPTCY ROSE A SUBSTANTIAL 21 TO 899 IN MARCH FROM 746 IN THE SAME MONTH LAST YEAR THE BANK OF KOREA SAID IN THE FIRST THREE MONTHS OF THIS YEAR ACCORDING TO THE CENTRAL BANK 2327 FIRMS FILED UP 18 FROM 1979 IN THE YEARAGO PERIOD BUT DOWN FROM A RECORD 3209 IN LAST YEAR'S FOURTH QUARTER THE HIGH FAILURE RATE IS EXPECTED TO SUBSIDE LATER THIS YEAR WHEN THE NATION'S ECONOMY IS EXPECTED TO COME OUT OF ITS CURRENT SLUMP AN OFFICIAL SAID 9305070003 930507 EXPAR PHARMACEUTICAL EMPLOYEE IS SENTENCED FOR ROLE IN FRAUD CASE BALTIMORE A FORMER EMPLOYEE OF PAR PHARMACEUTICAL INC WAS SENTENCED TO 27 MONTHS IN PRISON FOR HIS ROLE IN THE COMPANY'S GENERICDRUG FRAUD CASE SATISH R SHAH A FORMER RESEARCH AND DEVELOPMENT SUPERVISOR AT PAR WAS CONVICTED IN FEBRUARY OF CONSPIRING TO DEFRAUD THE FOOD AND DRUG ADMINISTRATION AND OF FILING A FALSE STATEMENT MR SHAH WAS FOUND GUILTY OF FALSIFYING BATCH RECORDS TEST REPORTS AND LABORATORY DATA FOR THE PURPOSE OF SAVING THE COMPANY MONEY AND TIME AND TO COVER UP RESULTS AND ACTUAL DEFICIENCIES THE US ATTORNEY'S OFFICE SAID PAR A SPRING VALLEY NY GENERIC DRUG COMPANY ALREADY HAS PLEADED GUILTY TO A NUMBER OF OFFENSES RELATED TO ITS GENERIC DRUG MANUFACTURING PRACTICES AND WAS FINED 25 MILLION PAR IS THE PREDECESSOR TO PHARMACEUTICAL RESOURCES INC THE CONVICTION AND SENTENCING OF MR SHAH 40 YEARS OLD IS PART OF A CONTINUING FEDERAL INVESTIGATION OF THE GENERIC DRUG INDUSTRY MORE THAN 40 INDIVIDUALS AND EIGHT COMPANIES SO FAR HAVE BEEN CONVICTED AS A RESULT OF THE INVESTIGATION 9305070002 930507 FINANCIER TO HOLD SCI TELEVISION WILMINGTON DEL AP A BANKRUPTCY JUDGE APPROVED SCI TELEVISION INC'S REORGANIZATION PLAN GIVING FINANCIER RONALD PERELMAN CONTROL OF THE COMPANY THE PLAN INCLUDES A 100 MILLION INVESTMENT BY MR PERELMAN THROUGH HIS ANDREWS GROUP IN EXCHANGE FOR 53 OF SCI'S EQUITY ANDREWS IS A WHOLLY OWNED SUBSIDIARY OF MACANDREWS & FORBES HOLDINGS INC WHICH MR PERELMAN CONTROLS IN ADDITION SCI WILL BUY WTVTTV THE CBS AFFILIATE IN TAMPA FLA FROM ANOTHER COMPANY GILLETT HOLDINGS INC FOR 163 MILLION THE PLAN IS EXPECTED TO BECOME EFFECTIVE ON MAY 28 9305070001 930507 WANTED FIRMS SEEK CHINESE NATIONALS WITH WESTERN EDUCATION AND TRAINING BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG AS THE MARKET IN CHINA GROWS INCREASINGLY COMPETITIVE BROKERAGE FIRMS LAW FIRMS AND OTHER MULTINATIONALS ARE SCRAMBLING TO HIRE CHINESE NATIONALS WHO HAVE SOME WESTERN EDUCATION AND TRAINING TO HELP FIND AND SECURE DEALS LIKE THE COMPRADORS RETAINED BY BRITISH TRADING HOUSES IN THE 19TH CENTURY THESE MODERN GOBETWEENS POSSESS LANGUAGE SKILLS CONNECTIONS AND AN UNDERSTANDING OF BOTH CHINA AND THE WEST WHAT THEY MIGHT LACK AS FAR AS THE TECHNICALITIES OF DEALMAKING THEY MAKE UP FOR IN CULTURAL MOBILITY AND ACCESS WHEN MERRILL LYNCH & CO JOINED THE FRAY VYING FOR A ROLE IN SHANGHAI PETROCHEMICAL COMPLEX'S PLANNED LISTING IN HONG KONG LAST JUNE ZHANG LIPING SET UP A MEETING BETWEEN THE COMPANIES' SENIOR MANAGERS THEN THE MERRILL LYNCH VICE PRESIDENT RANG SOME FRIENDS IN CHINA I BEGAN TO CALL ON FRIENDS OF MINE TO HELP TALK TO THE COMPANY NOT ONLY AT THE SENIOR LEVEL BUT ALSO AT WORKING LEVELSFRIENDS AT BANKS AT THE COMPANY ITSELF IN THE GOVERNMENT SAYS MR ZHANG AN INTENSE 35YEAROLD WHO SPEAKS ENGLISH FLUENTLY AFTER WORKING AND STUDYING IN NEW YORK FOR EIGHT YEARS ALTHOUGH MR ZHANG'S CONNECTIONS WEREN'T THE ONLY FACTOR THEY PROBABLY HELPED MERRILL LYNCH CLINCH THE LEADUNDERWRITER MANDATE FOR THE LARGEST OF NINE CHINESE COMPANIES SEEKING A LISTING ON HONG KONG'S STOCK EXCHANGE SAMUEL WAN MANAGING DIRECTOR OF EXECUTIVESEARCH FIRM NORMAN BROADBENT SAYS CHINESE NATIONALS WITH TWO OR THREE YEARS' EXPERIENCE IN THE SECURITIES FIELD CAN COMMAND AN ANNUAL SALARY OF 500000 HONG KONG DOLLARS US64700 EXCLUDING BONUSES OR WHAT A HONG KONG SECURITIES EXECUTIVE WITH FIVE YEARS' EXPERIENCE EARNS SOME ARE ALSO OFFERED SIGNON BONUSES OR A PERCENTAGE ON DEALS THEY BRING IN MOST OF THEM ARE MIDDLELEVEL EXECUTIVES THE MANAGING DIRECTOR NEEDS A DOOROPENER TO CHINA AND THEY FIT THAT POSITION MR WAN SAYS ONE WAY THEY OPEN DOORS IS THROUGH CONNECTIONS DRAWING ON FAMILIES FRIENDS AND FORMER COLLEAGUES ARGUABLY AMONG CHINA'S BEST AND BRIGHTEST MANY OF THESE NEW CHINESE PROFESSIONALS COME FROM FAMILIES OF RELATIVE PRIVILEGE MANY ALSO GRADUATED FROM CHINA'S TOP UNIVERSITIES SUCH CONNECTIONS ARE USEFUL FOR OBTAINING INFORMATION SPEEDING PROCEDURES AND GETTING INTRODUCTIONS TO THE RIGHT PEOPLE BUT THESE PROFESSIONALS AND THE FOREIGN FIRMS EMPLOYING THEM STRESS THAT IN THE END A COMPANY'S REPUTATION AND ITS ABILITY TO MEET THE NEEDS OF CLIENTS DETERMINE WHETHER IT WINS A DEAL THE CHINESE YUPPIE ONE PROFESSIONAL WITH THE RIGHT CONNECTIONS IS KAM KIN YAT UNLIKE MANY OF HIS PEERS HERE THE VICE PRESIDENT OF THE CHINA DIVISION AT HONG KONG'S LAI SUN DEVELOPMENT CO WAS BORN IN HONG KONG AND NEVER LIVED IN THE WEST MANY OF THE CHINESE EXECUTIVES CURRENTLY WORKING IN HONG KONG WERE PART OF THE CHUPPIE OR CHINESE YUPPIE SET STUDYING AND WORKING IN NEW YORK STARTING IN THE 1980S BUT HIS FATHER'S CREDENTIALS AS A PRE1949 COMMUNIST REVOLUTIONARY AND FORMER EXECUTIVE AT HONG KONG'S CHINABACKED WEN WEI PO NEWSPAPER HAVE GIVEN MR KAM CONTACTS ON THE MAINLAND A FRIEND OF HIS FATHER PROVIDED AN INTRODUCTION THAT HELPED MR KAM SECURE A JOINTVENTURE AGREEMENT TO DEVELOP SOME PRIME SHANGHAI REAL ESTATE WITH DENG XIAOPING'S YOUNGER SON I JOKE THAT I CAME OUT OF CHINA WITHOUT MONEY BUT WITH CAPITAL SAYS MR KAM WHO WAS SENT BY HIS FATHER TO LIVE IN CHINA WHEN HE WAS 12 AND STAYED FOR 14 YEARS THAT CAPITAL IS CONNECTIONS BUT YOU MUST KNOW HOW TO USE THEM FOR MR KAM THAT MEANS PROTECTING THE REPUTATION OF HIS WELLPLACED FRIENDS BY SUCCESSFULLY CARRYING OUT PROJECTS THEY BACK AND STEERING CLEAR OF ILLICIT ACTIVITIES IT ALSO MEANS REFRAINING FROM DROPPING TOO MANY NAMES AT LEAST INITIALLY BESIDES FAMILY CONNECTIONS MR KAM AND OTHER CHINESE PROFESSIONALS IN HONG KONG CAN CALL ON A NETWORK OF FRIENDS FORMER SCHOOLMATES AND COLLEAGUES IN CHINA MANY OF THESE CONTACTS HELD LOWERLEVEL POSITIONS IN GOVERNMENT OR STATE ENTERPRISES 10 YEARS AGO WHEN THE FRIENDSHIPS WERE STRUCK TODAY THEY OFTEN ARE IN DECISIONMAKING POSTS XU YANPING A GRADUATE OF PRESTIGIOUS BEIJING UNIVERSITY FINDS ITS ALUMNI NETWORK USEFUL AS SHE SCOUTS OUT UNDERWRITING OPPORTUNITIES IN CHINA FOR SG WARBURG SECURITIES FAR EAST LTD MANY OF MY UNIVERSITY FRIENDS HAVE VERY IMPORTANT POSITIONS IN SHENZHEN SAYS THE 31YEAROLD ASSISTANT DIRECTOR WHEN YOU HAVE DINNER OR LUNCH WITH THEM YOU CHAT AND YOU CAN LEARN A LOT OF THINGS THE SHENZHEN SPECIAL ECONOMIC ZONE IS THE SITE OF ONE OF CHINA'S TWO STOCK EXCHANGES AS IMPORTANT AS KNOWING THE RIGHT PEOPLE CHINESE PROFESSIONALS SAY IS BEING ABLE TO CONNECT WITH THEM GROWING UP IN CHINA AND SHARING SIMILAR EXPERIENCES PROVIDE A NATURAL BOND BECAUSE MANY OF THE CHINESE PROFESSIONALS IN HONG KONG HAVE ALSO STUDIED AND WORKED OVERSEAS THEY OFTEN FIND THEMSELVES SERVING AS A BRIDGE BETWEEN CHINA AND THE WEST WANG DANQI MOVES EFFORTLESSLY BETWEEN TWO WORLDS THE BAKER & MCKENZIE LAWYER'S CREDENTIALS TRAVEL JUST AS EASILY BORN TO A DIPLOMAT'S FAMILY SHE IS VERY MUCH PART OF THE CHINESE ELITE WITH A LAW DEGREE FROM HARVARD UNIVERSITY AND A STINT AT NEW YORK LAW FIRM WHITE & CASE MS WANG ALSO CLAIMS SOLID WESTERN LEGAL EXPERIENCE I UNDERSTAND SUBTLE GESTURES AND WORDS IN THE CHINESE CULTURE I CAN ADD UNDERSTANDING TO A DEAL BUT DESPITE UNIQUE SKILLS AND BACKGROUND MANY OF THESE NEW CHINESE PROFESSIONALS LACK ADEQUATE EXPERIENCE IN MAKING DEALS HONG KONG EXECUTIVES SAY MOST ARE TOO NEW THEY DIDN'T HAVE TIME TO DO MANY DEALS OR GET TRAINED PROPERLY OVERSEAS SAYS ONE EUROPEAN INVESTMENT BANK EXECUTIVE WHEN THEY START DOING DEALS THEIR WEAKNESSES START TO SHOW BECAUSE OF THEIR LACK OF EXPERIENCE MANY OF THESE CHINESE PROFESSIONALS ARE FINDING THEMSELVES LIMITED TO LESSGRAND TASKS THAT TAP ONLY THEIR MORE OBVIOUS TALENTS SUCH AS SCOUTING OUT AND FACILITATING DEALS MANY END UP SPENDING THE BULK OF THEIR TIME IN SUCH MARKETING ACTIVITIES INSTEAD OF IN THE USUAL LEGAL OR INVESTMENT BANKING DUTIES FOR WHICH THEY TRAINED MANY ALSO MUST TAKE UP SIMPLE JOBS LIKE TRANSLATING DOCUMENTS INTO CHINESE OR ARRANGING MEETINGS BECAUSE OTHERS DON'T POSSESS THE REQUISITE LANGUAGE SKILLS 9305070129 930414 THE GREENING OF AMERICA'S YOUTH BY JONATHAN H ADLER ON FRIDAY CHILDREN FROM AROUND THE WORLD WILL MEET IN ORLANDO FLA FOR THE FIRST ANNUAL KIDS WORLD COUNCIL A MEETING DESIGNED TO PROMOTE CHILDREN'S INVOLVEMENT IN ENVIRONMENTAL POLITICS NICKELODEON A CABLE CHANNEL AIMED AT CHILDREN HAS RUN A SERIES OF ADVERTISEMENTS ENTITLED PLAN IT FOR THE PLANET TO PROMOTE THE COUNCIL WHICH IT INTENDS TO COVER ONE OF THE NICKELODEON ADVERTISEMENTS TALKS ABOUT THE DANGERS POSED BY AEROSOLS REFRIGERATORS AND THOSE LITTLE WHITE CUPS MADE FROM POLYSTYRENE ALL THESE PRODUCTS THE AD WARNS CONTAIN CHLOROFLUOROCARBONS CFCS AND ARE THEREFORE BAD FOR THE ENVIRONMENT THERE IS ONLY ONE PROBLEM LIKE SO MUCH OF THE ENVIRONMENTAL INFORMATION THAT IS BEING DIRECTED AT CHILDREN THESE DAYS THE AD IS WRONG IN FACT THOSE LITTLE WHITE CUPS HAVE BEEN MANUFACTURED WITHOUT THE USE OF CFCS FOR MORE THAN THREE YEARS AEROSOL CANS PICTURED IN THE AD WITH A SKULL AND CROSSBONES HAVE NOT CONTAINED CFCS SINCE 1978 THAT IS WHEN THE USE OF CFCS IN AEROSOLS WAS BANNED BY CONGRESS NICKELODEON'S ATTEMPT TO RAISE ENVIRONMENTAL CONSCIOUSNESS IS ACTUALLY PROMOTING ENVIRONMENTAL IGNORANCE NICKELODEON IS NOT THE ONLY ONE THE ERROR ABOUT CFCS IN AEROSOL CANS CAN BE FOUND NEARLY EVERYWHERE ONE LOOKS IT IS CONTAINED IN THE TEENAGE MUTANT NINJA TURTLES' CHILDREN'S BOOK ABC'S FOR A BETTER PLANET AS WELL AS ON THE POPULAR CARTOON TELEVISION SERIES GI JOE THE FALLACY HIT PRIME TIME THIS YEAR WHEN IT WAS SPOUTED BY A CHARACTER ON CBS'S AWARDWINNING SERIES NORTHERN EXPOSURE INDEED IF ONE EXAMINES ANY SAMPLING OF GREEN MATERIALS FOR CHILDREN ONE FINDS THAT THEY ARE FILLED WITH SIMILAR ERRORS OR HALFTRUTHS THE MARCH 29 ISSUE OF NEWSWEEK INCLUDED A JUST FOR KIDS PULLOUT SECTION TITLED SAVING THE EARTH IN LISTING THE 10 BIGGEST CHALLENGES FACING THE PLANET THE SUPPLEMENT REVIVES SCARES OF DECLINING AGRICULTURAL PRODUCTION AND RESOURCE DEPLETION THE NEWSWEEK SUPPLEMENT IGNORES THE FACT THAT NONUS GRAIN PRODUCTION HAS BEEN OUTPACING POPULATION INCREASES FOR THE PAST THREE DECADES MOREOVER THE PROSPECT OF RUNNING OUT OF IMPORTANT RESOURCES FROM PRECIOUS MINERALS TO OIL IS NO LONGER IMMINENT PROVEN OIL RESERVES ARE GREATER THAN AT ANY POINT IN HISTORY SHOULD THESE RESERVES BEGIN TO DWINDLE OIL PRICES WILL AGAIN INCREASE RESTORING THE PRICE COMPETITIVENESS OF OTHER ENERGY SOURCES DESPITE WHAT NEWSWEEK CLAIMS THERE IS LITTLE PROSPECT OF RUNNING OUT IF THAT WERE NOT BAD ENOUGH THE PULLOUT INCLUDES AN ASK AL GORE SECTION WHERE KIDS ASK THE VICE PRESIDENT ABOUT ENVIRONMENTAL PROBLEMS ONE CHILD ASKS IF OZONE DEPLETION WILL TURN THE EARTH INTO A DESERT RATHER THAN CLARIFY THIS CHILD'S MISUNDERSTANDING OF THE RISKS POSED BY OZONE DEPLETION AND POINT OUT THAT EVEN IF THE DIREST PREDICTIONS ARE TRUE IT WILL MEAN AN ULTRAVIOLETB RADIATION INCREASE EQUIVALENT TO MOVING FROM WASHINGTON TO RICHMOND VA 100 MILES SOUTH MR GORE MERELY REITERATES THE NEED TO ACT NOW TO SAVE THE OZONE LAYER WHEN ASKED WHAT ARE WE GOING TO DO ABOUT BURNING FOSSIL FUELS MR GORE RESPONDS BY SAYING FOSSIL FUELS SUCH AS OIL NEED TO BE DISPLACED BY ALTERNATIVE FUELS LIKE CLEANBURNING NATURAL GAS YET NATURAL GAS IS A FOSSIL FUEL TOO THE ENVIRONMENTAL PROTECTION AGENCY HAS ALSO GOTTEN INTO THE ACT THE EPA PRODUCES A STUDENT'S FIRST SOURCEBOOK ON ACID RAIN THAT IS ANYTHING BUT FAIRMINDED IT COMPLETELY IGNORES FOR EXAMPLE THE CONCLUSIONS OF THE NATIONAL ACID PRECIPITATION ASSESSMENT PROGRAM A HALFBILLIONDOLLAR 10YEAR GOVERNMENT STUDY WHICH FOUND THAT SIGNIFICANT ENVIRONMENTAL DAMAGE CANNOT BE ATTRIBUTED TO ACID RAIN EPA'S LIST OF ENVIRONMENTAL MATERIALS FOR CLASSROOM USE LISTS PUBLICATIONS FROM EVERY IMAGINABLE ACTIVIST GROUP RANGING FROM THE ENVIRONMENTAL ACTION COALITION TO ZERO POPULATION GROWTH THIRTY STATES HAVE FORMAL PROGRAMS OF ENVIRONMENTAL EDUCATION AND MORE ARE ON THE WAY BUT THEY WON'T DO MUCH TO IMPROVE THE SITUATION IF THE PROPOSED PLAN OF ACTION DEVELOPED BY THE NEW JERSEY ENVIRONMENTAL EDUCATION COMMISSION OFFERS ANY INDICATION ONE OF THIS PROGRAM'S MANDATES IS TO DEVELOP THE VALUES NEEDED TO PROTECT THE ENVIRONMENT WHAT ARE THESE VALUES WELL THEY INCLUDE THE FACT THAT ENVIRONMENTAL ISSUES HAVE A MORAL AND SPIRITUAL DIMENSION AND THAT THE DIVERSITY OF CULTURE SHOULD BE CONSIDERED IN ENVIRONMENTAL POLICIES DOES THIS SOUND LIKE EDUCATION OR INDOCTRINATION TOO OFTEN ENVIRONMENTAL EDUCATION MERELY PROSELYTIZES AND PROMOTES PET CAUSES NEWSWEEK TELLS CHILDREN TO BUY RAINFOREST NUTS AND NOT TO PURCHASE PRODUCTS IN PLASTIC BOTTLES THE TEENAGE MUTANT NINJA TURTLES TELL CHILDREN TO WRITE TO YOUR GOVERNMENT LEADERS AT EVERY LEVEL CITY COUNTY STATE AND FEDERAL A SAVE THE EARTH ACTION PACK DISTRIBUTED BY THE TURNER BROADCASTING SYSTEM EVEN TELLS CHILDREN TO INCREASE THE AMOUNT OF TIME AND MONEY THEY GIVE TO ENVIRONMENTAL ORGANIZATIONS AND TO URGE GOVERNMENTS TO SUPPORT THE WORK OF THESE ORGANIZATIONS WERE THIS DONE WITH ANY OTHER POLITICAL MATTER PARENTS WOULD BE UP IN ARMS AND RIGHTLY SO CLEARLY ENVIRONMENTAL LOBBYISTS HAVE DECIDED THAT ONE WAY OF ADVANCING THEIR POLITICAL OBJECTIVES IS TO REACH THE HEARTS AND MINDS OF CHILDREN WHO WILL NOT ONLY PESTER THEIR PARENTS BUT WILL THEMSELVES GROW UP TO BE ACTIVISTS AND VOTERS OTHER WOULDBE INSTRUCTORS OF CHILDREN ARE MERELY TRYING TO ACT RESPONSIBLY APPARENTLY WITHOUT UNDERSTANDING THAT THERE MAY BE MORE THAN ONE ANSWER TO ANY ENVIRONMENTAL QUESTION AND THAT THE GREEN VERSION OF THINGS CAN BE EXTREMELY SIMPLISTIC AND MISLEADING UNFORTUNATELY THE CREATORS OF ENVIRONMENTAL BOOKS AND TOYS RARELY KNOW MUCH ABOUT THE SUBJECT THAT THEY ARE PROMOTING ENVIRONMENTAL EDUCATION WOULD DO BETTER SIMPLY TEACHING ABOUT SCIENTIFIC MATTERS INCLUDING HYDROLOGY ECOSYSTEMS AND THE WEATHER AS CHILDREN GET OLDER THE PROS AND CONS OF VARIOUS ENVIRONMENTAL POLICIES CAN BE DISCUSSED IN A FAIR AND BALANCED MANNER RIGHT NOW THE ENVIRONMENTAL SCIENCE PUSHED TO CHILDREN IS MORE POLITICAL THAN FACTUAL MR ADLER IS AN ENVIRONMENTAL POLICY ANALYST AT THE COMPETITIVE ENTERPRISE INSTITUTE IN WASHINGTON SEE RELATED LETTERS LETTERS TO THE EDITOR MERE FACTS DON'T DAUNT GREEN ZEALOTS WSJ MAY 7 1993 9304140038 YY93 MM05 9305070016 930319 MEDIA PARENTS SAY PBS STATIONS EXPLOIT BARNEY IN FUND DRIVES BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL BARNEY THE PURPLE DINOSAUR STAR OF THE PUBLIC BROADCASTING SERVICE'S BARNEY & FRIENDS IS MAKING SOME PARENTS SEE RED THESE DAYS THEY'RE ANGRY THAT PBS STATIONS' SPRING PLEDGE DRIVES FREQUENTLY INTERRUPT CHILDREN'S PROGRAMMING INCLUDING A BARNEY MARATHON TO SOLICIT FUNDS THE PITCHES TYPICALLY OFFER INDUCEMENTS TIED TO THE PROGRAM BEING INTERRUPTED SUCH AS BARNEY PUPPETS AND TAPES THOUGH PARENTS AND ADVOCATES FOR CHILDREN'S PROGRAMMING ARE PLEASED THAT PBS STATIONS CARRY BARNEY SESAME STREET LAMB CHOP'S PLAYALONG AND OTHER CHILDREN'S SHOWS MANY ARE APPALLED THAT FUND RAISING TAKES PLACE DURING CHILDREN'S PROGRAMSESPECIALLY APPEALS THAT TANTALIZE CHILDREN WITH TOYS AND TAPES AND THE FEDERAL COMMUNICATIONS COMMISSION IS LOOKING INTO WHETHER SUCH APPEALS VIOLATE ITS RULES ON ADVERTISING DURING CHILDREN'S SHOWS GIVEAWAYS OF CHILDREN'S TOYS ARE HARDLY NEW PBS STATIONS CONTINUE TO ENTICE DONORS WITH GIFTS BASED ON SESAME STREET SHINING TIME STATION AND OTHER SHOWS BUT BARNEY'S IMMENSE POPULARITY WITH ESPECIALLY YOUNG AND IMPRESSIONABLE CHILDREN PUTS HIM IN A SPECIAL SITUATION ANGELA CAMPBELL A GEORGETOWN UNIVERSITY LAW PROFESSOR AND AN ADVOCATE FOR CHILDREN'S TELEVISION PROGRAMMING SAYS SHE WAS OUTRAGED LAST WEEK WHEN HER FIVEYEAROLD JULIA ASKED HER TO SEND A CHECK FOR BARNEY I CALLED THE STATION AND THREATENED NOT TO SEND IN ANY MORE MONEY IF THEY CONTINUE TO EXPLOIT CHILDREN THAT WAY MS CAMPBELL SAYS THERE'S NOTHING WRONG WITH PBS STATIONS OFFERING BARNEY PUPPETS DURING PROGRAMS FOR GROWNUPS SHE SAYS BUT THEY SHOULD NOT BE HOLDING OUT THESE GIFTS WHEN THEY KNOW THEIR MAIN AUDIENCE IS CHILDREN SOME OF PBS'S BIGGEST FANS ARE DISMAYED WHO DID I GET A CALL FROM THIS WEEK BUT MY OWN DAUGHTER SAYS PEGGY CHARREN A LONGTIME ADVOCATE FOR BETTER CHILDREN'S SHOWS IT ISN'T FAIR SHE SAYS TO TEMPT HER THREEYEAROLD GRANDSON WITH A PROMISE OF A TOY CLEARLY PARENTS WANT TO GIVE MONEY TO PUBLIC BROADCASTING BECAUSE THEY LOVE WHAT PUBLIC BROADCASTING DOES FOR THEIR CHILDREN MS CHARREN SAYS FOR FOUR YEARS I HAVE BEEN TELLING PUBLIC TELEVISION STATIONS TO STOP SOLICITING PLEDGES DURING CHILDREN'S PROGRAMMING SHE SAYS BUT PUBLIC BROADCASTING IS HUNGRY FOR MONEY AND THE TACTIC OF SELLING TO CHILDREN WORKS PUBLIC BROADCASTING OFFICIALS COUNTER THAT THE STATIONS AVOID ANY DIRECT PITCHES TO KIDS DURING CHILDREN'S PROGRAMMING THE STATIONS BEGIN PLEDGE SEGMENTS BY ASKING KIDS TO GET THEIR PARENTS OR AN ADULT AND PLEAS ARE AIMED AT ADULTS IF STATIONS SHUNNED SOLICITING DURING CHILDREN'S SHOWS A SIZABLE SOURCE OF PLEDGES MIGHT DRY UP AND ALONG WITH IT SOME CHILDREN'S PROGRAMS LIKE ANY OF OUR OTHER PROGRAMS BARNEY & FRIENDS' SURVIVES BECAUSE OF INDIVIDUAL CONTRIBUTORS SAYS JIM SCALEM PBS'S VICE PRESIDENT FOR FUND RAISING HE ADDS THAT THE SHOW IS ONE OF THE BEST FUNDRAISING PROGRAMS WE NOW HAVE ON AS SESAME STREET' HAS BEEN FOR YEARS SOME STATIONS ARE AMBIVALENT IN THE BEST OF ALL WORLDS WE WOULDN'T BE DOING IT SAYS GREG SHERWOOD DIRECTOR OF COMMUNICATIONS FOR KQED IN SAN FRANCISCO BUT WE NEED THE FUNDING TO ENSURE THAT WE CAN KEEP THIS TYPE OF PROGRAMMING ON THE AIR BALANCING THE NEED FOR FUNDING AGAINST CHILDREN'S INTERESTS CAN BE DIFFICULT THIS IS A VERY TOUCHY AREA BECAUSE THE VERY ABSENCE OF COMMERCIALISM IS WHAT MAKES PUBLIC BROADCASTING AN IMPORTANT ALTERNATIVE FOR CHILDREN SAYS ANDREW SCHWARTZMAN HEAD OF THE MEDIA ACCESS PROJECT A PUBLICINTEREST LAW FIRM IN WASHINGTON TYING PLEDGES TO THIS KIND OF COMMERCIAL VEHICLE IS PARTICULARLY UNSETTLING IT MAY ALSO BE ILLEGAL UNDER FEDERAL COMMUNICATIONS COMMISSION RULES TV STATIONS ARE BARRED FROM RUNNING ADS THAT PROMOTE A PRODUCT OR SERVICE DURING AS WELL AS IMMEDIATELY BEFORE OR AFTER CHILDREN'S PROGRAMMING THAT FEATURES CHARACTERS ALSO APPEARING IN THE ADS FOR EXAMPLE A STATION CAN'T SHOW AN AD FOR GI JOE TOYS DURING OR BORDERING ON A GI JOE CARTOON PROGRAM SUCH ADS WOULD TURN THE GI JOE PROGRAM INTO WHAT THE FCC CALLS A PROGRAMLENGTH COMMERCIAL VIOLATING LIMITS ON THE AMOUNT OF ADVERTISING STATIONS CAN CARRY FOR YEARS THE AGENCY HAS ALSO BANNED HOST SELLING WHICH ENCOMPASSES ALMOST ANY TYPE OF INTERWEAVING OF COMMERCIALS PROMOTING A PRODUCT OR SERVICE TIED TO A RELATED CHILDREN'S PROGRAM IT MAY NOT BE DIFFERENT WITH PBS PLEDGE DRIVES SAYS MARCIA DIAMOND AN FCC LAWYER THIS IS SOMETHING WE ARE STILL WORKING THROUGH MS DIAMOND SAYS THE AGENCY HAS RECEIVED TWO COMPLAINTS ABOUT THE USE OF BARNEY PRODUCTS IN THE LATEST PLEDGE DRIVE AND IS EXAMINING WHETHER THE COMPLAINTS SHOULD BE PURSUED LAST FALL THE AGENCY FOUND THAT WHYY A PUBLIC BROADCASTING STATION IN PHILADELPHIA HAD VIOLATED THE HOST SELLING BAN BY DEPICTING IN AN UNDERWRITING ANNOUNCEMENT AT THE START OF A SESAME STREET SHOW CHARACTERS IN A SESAME STREET LIVE PERFORMANCE THAT WAS COMING TO TOWN THE STATION HAS APPEALED ARGUING THAT THE ANNOUNCEMENT DIDN'T UNLAWFULLY PROMOTE THE SESAME STREET SHOW THE REACTION TO THE BARNEY PITCHES MAY REFLECT AN UNDERCURRENT OF PARENTAL DISLIKE THOUGH HE IS WILDLY POPULAR AMONG THE PRESCHOOL SET 30000 CHILDREN AND PARENTS TURNED OUT TO GREET HIM AT A RECENT APPEARANCE AT A SUBURBAN WASHINGTON SHOPPING MALL SOME PARENTS FIND THE GENIAL DINOSAUR WITH HIS MESSAGES OF LOVE AND FRIENDSHIP IMAGINATION COOPERATION AND CULTURAL DIVERSITY GOOFY IF NOT GOOEY WE DO NEED THE SUPPORT OF PARENTS AND THIS IS ONE WAY TO GET THEIR ATTENTION SAYS MR SHERWOOD OF KQED BUT HE ACKNOWLEDGES THERE MAY BE A BARNEY BACKLASH SEE RELATED LETTER LETTERS TO THE EDITOR PARENTS KNOW PBS DOESN'T EXPLOIT KIDS WSJ MAY 7 1993 9303190009 YY93 MM05 9305060169 930506 DETROIT'S CHOICE THERAPY OR SUICIDE BY J BRUCE JOHNSTON CONGRESS IS NOW DEBATING A BILL THAT WOULD OUTLAW THE RIGHT TO BRING IN PERMANENT REPLACEMENTS FOR STRIKING WORKERS BILL CLINTON HAS PROMISED HIS UNION FRIENDS PARTICULARLY THE UNITED AUTO WORKERS TO SIGN THE LEGISLATION AS SOON AS IT LANDS ON HIS DESK IF ALL THIS COMES TO PASS GOVERNMENT WILL BE AIDING THE DOMESTIC AUTO INDUSTRY'S FLIGHT FROM REALITY TODAY WE HEAR THE USUAL SABERRATTLING OF THE UAW AND THE BIG THREE AS THEY GET READY FOR THEIR TRIENNIAL CONTRACT TALKS THIS FALL DON'T BE FOOLED AUTO LABOR AND MANAGEMENT ARE DANGEROUS CODEPENDENTS AND THEY'VE GOT A COMMON STRATEGY WHICH IS TO USE POLITICS TO SHIFT THE DAMAGE FROM THEIR DYSFUNCTIONAL RELATIONSHIP ONTO OTHER PARTIES ESPECIALLY CONSUMERS AND TAXPAYERS THE ROOT OF THE PROBLEM IS PATTERN BARGAINING THIS IS THE UAW'S TIMEHONORED PRACTICE OF PICKING OUT THE INDUSTRY'S MOST COMPLIANT COMPANY WRINGING COSTLY CONCESSIONS FROM IT AND THEN PRESSURING THE ENTIRE INDUSTRY TO AGREE TO THE TARGET PACT OR FACE A LONG STRIKE FROM THE UAW THE TARGETED COMPANY NATURALLY DEVELOPS A POWERFUL INTEREST IN SEEING ITS RIVALS LOADED WITH THE SAME COSTS OVER THE YEARS THE IDEA THAT EVERYTHING WILL BE OK AS LONG AS ALL DOMESTIC COMPETITORS' COSTS GO UP TOGETHER HAS INDUCED A PERVASIVE SENSE OF UNREALITY WHEN IT COMES TO LABOR COSTS THE INCOME GUARANTEES DISHED OUT BY GENERAL MOTORS THREE YEARS AGO ARE A PRIME EXAMPLE THESE OBLIGED THE COMPANY TO PAY 95 OF ITS FULL WAGE PACKAGE TO UNION MEMBERS WHO HAVE NOT WORKED A DAY IN YEARS AND CONTRIBUTED MIGHTILY TO GM'S MULTIBILLIONDOLLAR OPERATING LOSSES AND THAT JUST SCRATCHES THE SURFACE ON TOP OF PREMIER WAGES GM HAS BEEN LURED OVER THE YEARS INTO PAYING FOR EVERYTHING FROM INDEXED COSTOFLIVING BONUSES TO PROFIT SHARING FROM DELUXE EARLY RETIREMENT PACKAGES TO LITERACY PAY FOR WORKERS WHO CAN'T READ WHEN IT'S ALL ADDED UP GM WORKERS AVERAGE WELL OVER 40 AN HOUR COMPARED WITH 15 FOR ALL OTHER AMERICAN MANUFACTURING WORKERS MAYBE DETROIT COULD AFFORD THIS SORT OF THING BEFORE OTHER COUNTRIES MANAGED TO EVOLVE AUTO SECTORS WITH SKILLS AND TECHNOLOGY TO COMPETE WITH OUR OWN THOSE DAYS ARE HISTORY CATERPILLAR SHOOK OFF THE PAST WHEN IT RECOGNIZED THAT ITS GLOBAL CUSTOMERS NO LONGER HAVE TO BUY THE UAW PATTERN TO OBTAIN GOOD EARTHMOVERS AND OTHER HEAVY EQUIPMENT THEY CAN ALWAYS TURN TO JAPAN'S KOMATSU LAST YEAR CAT WENT UP AGAINST THE UAW IN A FAMOUS TEST THAT ENDED ONLY WHEN THE COMPANY STARTED BRINGING IN EAGER NONUNION TRAINEES THE WAR GOES ON THE UAW IS PROSECUTING A CAMPAIGN OF VILIFICATION AGAINST CEO DONALD FITES AND HIS MANAGEMENT TEAM AND IS HOUNDING CONGRESS TO OUTLAW STRIKER REPLACEMENT SO THE UNION CAN REIMPOSE THE PATTERN THUS CAT COULD GO THE WAY OF JOHN DEERE AND HARNISHFEGER WHICH HAVE SHIPPED MUCH OF THEIR PRODUCTION OFFSHORE OR INTERNATIONAL HARVESTER AND ALLISCHALMERS WHICH WERE PATTERNED INTO BANKRUPTCY YOU'D THINK THE UAW WOULD HAVE LEARNED SOMETHING FROM THIS AND PERHAPS IT HAS AT GM'S SATURN PLANT AND A FEW OTHERS UNION WORKERS TAKE PRIDE IN CUTTING COSTS AND BOOSTING PRODUCTIVITY BUT AT THE UAW'S CENTRAL OFFICE STRATEGY IS GEARED TO AN AGING RANK AND FILE STEEPED IN ZEROSUM LABOR POLITICS THEIR GOAL IS TO POSTPONE THE DAY OF RECKONING UNTIL THEY HAVE THEIR PENSIONS AND THEN JUMP SHIP JUST BEFORE IT CRASHES ON THE ROCKS YOU COULD ARGUE THAT STEELWORKERS TOOK A LOT OF PAIN THAT RIGHTFULLY BELONGED TO AUTO WORKERS BECAUSE STOMPING DOWN ON SUPPLIERS WAS ONLY A STOPGAP FOR THE BIG THREE GETTING A HANDLE ON THEIR OWN PROBLEMS CAR PRICES HAVE BEEN ONE OF THE FASTEST RISING PARTS OF THE CONSUMER PRICE INDEX JUST BEHIND HEALTH CARE YET THIS MONEY HASN'T GONE TO SHAREHOLDERS OR TO INVESTMENT IN NEW TECHNOLOGY INDEED GM HAS HAD TO ISSUE MILLIONS OF NEW SHARES JUST TO COVER ITS STAGGERING NORTH AMERICAN LOSSES WHATEVER HAS BEEN GAINED FROM HIGHER CAR PRICES CHEAPER MATERIALS AND IMPROVED PRODUCTIVITY WAS GOBBLED UP BY THE UAW MUCH OF WHOSE BENEFIT PACKAGE IS INDEXED WHY DOES THIS CONTINUE IN THERAPYSPEAK THE AUTO CHIEFTAINS ARE SUBMISSIVE ENABLERS TO AN ABUSIVE UAW SPOUSE INSTEAD OF SUING FOR SEPARATION THEY FLAIL AROUND TRYING TO FORCE OTHERS TO SUBSIDIZE THEIR PATTERN WITH PROLABOR DEMOCRATS BACK IN CHARGE THIS DYSFUNCTIONAL ODD COUPLE NOW THINKS IT CAN HOLD THINGS TOGETHER BY WALLING OUT FOREIGN COMPETITORS AND WALLING IN DOMESTIC CONSUMERS THEIR POLITICAL STRATEGY HAS THREE ELEMENTS OVER THE YEARS THE BIG THREE AND THE UAW HAVE MANAGED TO ERECT A VASTLY EXPENSIVE FIRSTDOLLAR MEDICAL PACKAGE FOR WORKERS AND RETIREES THAT'S VIRTUALLY UNMATCHED IN THE WORLD NOW CEOS AND UNION BOSSES ARE LOBBYING SIDE BY SIDE TO SHIFT THE HIGH COST OF THESE FOOLISH HEALTHCARE GUARANTEES ONTO THE BACKS OF TAXPAYERS THEY CALL THIS HEALTH CARE REFORM SECOND INDUSTRY EXECS WANT CONGRESS TO IMPOSE CRUSHING TARIFFS ON CAR BUYERS WHO MIGHT PREFER IMPORTS THEREBY PROTECTING DETROIT'S OVERPRICED PRODUCTS FROM WORLD COMPETITION ALREADY THE BIG THREE HAVE CONVINCED THE PRESIDENT THAT NOT SLAPPING A PUNITIVE TAX ON IMPORTED MINIVANS SOMEHOW CONSTITUTES A FREEBIE FOR JAPAN FORD'S HAROLD POLING IS PUSHING THE IDEA THAT JAPAN CAN SIMPLY BE ORDERED TO ZEROOUT ITS TRADE SURPLUS ACCORDING TO A FIVEYEAR TIMETABLE FINALLY AND A BIG REASON THE UAW IS CONSPIRING WITH THE BIG THREE THE DEAL INCLUDES AN ALLOUT EFFORT TO KILL STRIKER REPLACEMENT YOU CAN'T HAVE REALISTIC BARGAINING UNLESS BOTH SIDES SHARE NEGOTIATING RISK AND THAT MEANS MANAGEMENT NEEDS TO HAVE THE FALLBACK OF REPLACING STRIKING WORKERS WITH THE LAWS THEY SEEK THE UAW WOULD ACHIEVE NIRVANA ITS OVERPRICED LABOR WOULD BE COMPLETELY INSULATED FROM COMPETITIVE REALITY HOW THIS CAMPAIGN FINALLY PLAYS OUT IN WASHINGTON WILL AFFECT A LOT OF PEOPLE FAR AWAY FROM DETROIT IF THE AUTO ELITES AND CONGRESS SUCCEED IN ENACTING THIS GRUBBY VISION OF THE INDUSTRY'S SELFINTEREST A FEW MORE GRAYHEADED AUTO WORKERS MAY GET OUT WITH THEIR GOLDEN PARACHUTES INTACT BUT THEY WON'T BEQUEATH A VIABLE AUTO INDUSTRY TO AMERICA MORE AND MORE OF OUR BEST BLUECOLLAR JOBS WILL DISAPPEAR OVER THE HORIZON THAT'S ALSO THE PATTERN MR JOHNSTON FORMER EXECUTIVE VICE PRESIDENT OF USX AND CHIEF NEGOTIATOR FOR THE STEEL INDUSTRY NOW CONSULTS FROM COHEN & GRIGSBY IN PITTSBURGH 9305060168 930506 ECONOMY US TO USE TESTERS' IN NEW CAMPAIGN ON DISCRIMINATION IN MORTGAGE LENDING BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMPTROLLER OF THE CURRENCY LAUNCHED A CAMPAIGN AGAINST MORTGAGE DISCRIMINATION INCLUDING USING TESTERS TO DETERMINE WHETHER BANKS TREAT MINORITY AND WHITE CREDIT APPLICANTS DIFFERENTLY THE INITIATIVE ANNOUNCED BY COMPTROLLER EUGENE LUDWIG IS PART OF A BROAD CLINTON ADMINISTRATION PLAN TO MAKE CREDIT MORE AVAILABLE TO MORE PEOPLE ASIDE FROM AUGMENTING EFFORTS TO POLICE MORTGAGE DISCRIMINATION THE ADMINISTRATION IS PUTTING THE FINISHING TOUCHES ON A COMMUNITY DEVELOPMENT PROGRAM TO INCREASE CREDIT FLOWS TO POOR INNER CITY AND RURAL AREAS THE TWOPRONGED PLAN IS EXPECTED TO CALL FOR ESTABLISHING A 500 MILLION TRUST TO SUPPORT COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS INCLUDING BANKS CREDIT UNIONS AND LOAN FUNDS IN ADDITION THE PROGRAM WILL PROPOSE CHANGES IN THE COMMUNITY REINVESTMENT RULES TO SPUR BANKS TO INCREASE LOANS AND OTHER BANKING SERVICES IN COMMUNITIES WHERE ACCESS TO CREDIT IS CURRENTLY LIMITED THE NEW ANTIDISCRIMINATION PROGRAM WILL FOCUS ON THE 900 NATIONAL BANKS THAT EACH DENIED AT LEAST FIVE MORTGAGE LOAN APPLICATIONS OVER THE PAST YEAR FROM AFRICANAMERICANS HISPANICS OR NATIVE AMERICANS THE AGENCY WHICH REGULATES ABOUT 3600 NATIONAL BANKS WILL ATTEMPT TO DETERMINE WHETHER ALL MORTGAGE APPLICANTS ARE TREATED EQUALLY AND WHETHER MINORITY AND NONMINORITY APPLICANTS RECEIVE THE SAME ASSISTANCE DURING THE APPLICATION PROCESS IN ADDITION MR LUDWIG SAID HIS OFFICE WILL BEGIN A PILOT PROGRAM TO USE MINORITY AND NONMINORITY TESTERS TO FILE MORTGAGE APPLICATIONS TO LEARN WHETHER ECONOMICALLY SIMILAR APPLICANTS WITH DIFFERENT ETHNIC BACKGROUNDS GET EQUAL TREATMENT THE COMPTROLLER WILL BECOME THE FIRST FEDERAL BANK REGULATOR TO USE TESTERS A MOVE THAT CONSUMER GROUPS HAVE ADVOCATED FOR YEARS MR LUDWIG ALSO SAID HIS OFFICE WILL DEVELOP NEW STATISTICAL METHODS FOR REVIEWING LENDING DATA FOR SIGNS OF POSSIBLE DISCRIMINATION IN RECENT YEARS THE FEDERAL RESERVE BANK OF BOSTON AND THE JUSTICE DEPARTMENT HAVE ANALYZED DATA THAT LENDERS MUST COLLECT UNDER THE HOME MORTGAGE DISCLOSURE ACT FOR SIGNS OF POTENTIALLY DISCRIMINATORY LENDING PATTERNS THE COMPTROLLER PLANS TO EXPLORE WHETHER BANKS SHOULD BE REQUIRED TO COLLECT AND REPORT THE SAME DATA ON APPLICANTS FOR BUSINESS AND CONSUMER LOANS THAT LENDERS MUST CURRENTLY COLLECT FROM MORTGAGE APPLICANTS THE OFFICE OF THE COMPTROLLER OF THE CURRENCY WILL NOT TOLERATE DISCRIMINATION IN ANY FORM IN NATIONAL BANKS MR LUDWIG SAID AT A NEWS CONFERENCE AT ONE POINT HE CALLED CREDIT DISCRIMINATION BESTIAL STEPHEN CROSS DEPUTY COMPTROLLER FOR COMPLIANCE SAID THE 1991 BANKING LAW REQUIRES REGULATORS TO REPORT INSTANCES OF DISCRIMINATION TO THE JUSTICE OR HOUSING AND URBAN DEVELOPMENT DEPARTMENTS FOR POSSIBLE CIVIL PROSECUTION SO FAR THE COMPTROLLER HAS REFERRED ONLY ONE DISCRIMINATION CHARGE TO THE JUSTICE DEPARTMENT CONSUMER GROUPS APPLAUDED MR LUDWIG'S ANNOUNCEMENT IT'S A BREAK IN WHAT HAS BEEN A LONG AND SORRY RECORD SAID DEEPAK BHARGAVA OF THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW A GROUP KNOWN AS ACORN HE SAID THE USE OF TESTERS IS GOING TO BE A GOOD ENFORCEMENT TOOL THE BANKING INDUSTRY WAS LESS ENTHUSIASTIC WE JUST HOPE THAT ANY CHANGES IN EXAM PROCEDURES WON'T CREATE A LOT OF PAPERWORK AND CONFUSION FOR BANK CUSTOMERS SAID EDWARD YINGLING OF THE AMERICAN BANKERS ASSOCIATION HE SAID THE BANKING INDUSTRY REALIZES IT MUST DO MORE TO GET CREDIT INTO THE HANDS OF MINORITIES AND LOW AND MODERATEINCOME BORROWERS AND IS MAKING PROGRESS TOWARD THIS GOAL OVER THE PAST TWO YEARS DATA COLLECTED BY THE FEDERAL RESERVE UNDER THE HOME MORTGAGE DISCLOSURE ACT HAVE SHOWN THAT BLACKS ARE REJECTED FOR MORTGAGES ABOUT TWICE AS OFTEN AS WHITES AND HISPANIC APPLICANTS ABOUT 14 TIMES AS OFTEN THE FINDINGS HAVE SPURRED REGULATORS BANKERS AND POLITICIANS TO ATTACK DISCRIMINATION SEPARATELY THE FEDERAL DEPOSIT INSURANCE CORP WHICH REGULATES ABOUT 7500 BANKS SAID IT IS BOLSTERING ITS PROCEDURES FOR MONITORING COMPLIANCE WITH FAIRLENDING LAWS 9305060167 930506 WHO'S NEWS READRITE CORP READRITE CORP MILPITAS CALIF FRED SCHWETTMANN 53 YEARS OLD WAS NAMED PRESIDENT CHIEF OPERATING OFFICER AND DIRECTOR OF THIS MAKER OF COMPONENTS FOR COMPUTER DISK DRIVES HE WILL JOIN THE COMPANY MAY 17 AFTER 17 YEARS AT HEWLETTPACKARD CO WHERE HE MOST RECENTLY WAS VICE PRESIDENT AND GENERAL MANAGER OF THE CIRCUIT TECHNOLOGY GROUP HE SUCCEEDS ROBERT C GENESI 56 WHO RETIRED FROM THE COMPANY LAST MONTH 9305060166 930506 WHO'S NEWS U S WEST INC U S WEST INC ENGLEWOOD COLO ROGER K TAYLOR 41 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF FINANCIAL SECURITY ASSURANCE AN INSURER OF MUNICIPAL BONDS AND ASSETBACKED SECURITIES THAT IS MAJORITY OWNED BY THIS REGIONAL BELL COMPANY'S U S WEST CAPITAL CORP UNIT MR TAYLOR SUCCEEDS WILLIAM I JACOBS WHO RECENTLY LEFT THE COMPANY SEAN MCCARTHY 34 A MANAGING DIRECTOR SUCCEEDS MR TAYLOR AS HEAD OF FSA'S FINANCIAL GUARANTY DEPARTMENT WHICH COMPRISES ALL OF THE COMPANY'S TRANSACTION GROUPS 9305060165 930506 WHO'S NEWS GENERAL MOTORS CORP GENERAL MOTORS CORP DETROIT ROBERT C PURCELL 40 YEARS OLD WAS NAMED EXECUTIVE IN CHARGE OF CORPORATE STRATEGY DEVELOPMENT FOR THIS US AUTO MAKER MR PURCELL WILL BE RESPONSIBLE FOR DEVELOPMENT OF GM'S INTEGRATED STRATEGIC PLAN MR PURCELL HAS BEEN DIRECTOR OF BUSINESS PLANNING FOR GM'S NORTH AMERICAN OPERATIONS SINCE MARCH 1992 HE HAD HELD FINANCE AND PLANNING POSITIONS IN THE GM POWERTRAIN OPERATIONS SINCE 1988 9305060164 930506 WHO'S NEWS RITE AID CORP RITE AID CORP CAMP HILL PA THIS OPERATOR OF DISCOUNT DRUGSTORES AND SPECIALTY RETAIL STORES PROMOTED THREE CORPORATE EXECUTIVES WITHIN THEIR RESPECTIVE DIVISIONS FRANKLIN BROWN 65 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL HE HAD BEEN SENIOR VICE PRESIDENT TOM COOGAN 37 WAS NAMED VICE PRESIDENT AND TREASURER HE WAS ASSISTANT TREASURER AND JOSEPH SPEAKER 34 WAS NAMED VICE PRESIDENT AND RETAIL CONTROLLER HE WAS ASSISTANT VICE PRESIDENT 9305060163 930506 WHO'S NEWS LIPOSOME CO LIPOSOME CO PRINCETON NJ THIS DEVELOPER OF LIPOSOME AND LIPIDBASED PHARMACEUTICALS NAMED SPIRO G ROMBOTIS 34 YEARS OLD TO THE NEWLY CREATED POST OF VICE PRESIDENT FOR INTERNATIONAL OPERATIONS MR ROMBOTIS PREVIOUSLY WAS VICE PRESIDENT OF PHARMACEUTICAL OPERATIONS FOR CENTRAL AND EASTERN EUROPE FOR BRISTOLMYERS SQUIBB CO 9305060162 930506 WHO'S NEWS ALLERGAN INC ALLERGAN INC IRVINE CALIF BENJAMIN F MCGRAW WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT CORPORATE DEVELOPMENT WITH THIS PROVIDER OF SPECIALTY THERAPEUTIC PRODUCTS DR MCGRAW 44 YEARS OLD PREVIOUSLY WAS PRESIDENT OF MEDTECH TRENDS INC AND CARERRA CAPITAL MANAGEMENT INC 9305060161 930506 TECHNOLOGY PROPOSAL BY CENTERIOR AIR PRODUCTS AND LTV MAY GET DOE FUNDING WASHINGTON THE US DEPARTMENT OF ENERGY SELECTED A CLEAN COAL PROPOSAL FROM AIR PRODUCTS & CHEMICALS INC CENTERIOR ENERGY CORP AND LTV CORP'S STEEL UNIT FOR POSSIBLE FUNDING THE GROUP HAS ASKED FOR 150 MILLION FROM THE DEPARTMENT FOR THE PROJECT WHICH IT ESTIMATES WILL COST 825 MILLION BUT THE COMPANIES MUST COMPLETE SEVERAL OTHER STEPS INCLUDING NEGOTIATING A COOPERATIVE AGREEMENT WITH THE DEPARTMENT BEFORE THEY RECEIVE FUNDING ALLENTOWN PABASED AIR PRODUCTS AND CENTERIOR AND LTV BOTH BASED IN CLEVELAND ESTIMATE A 1998 STARTUP THE PROJECT INVOLVES USING US COAL IN A PROCESS THAT MAKES MOLTEN IRON WITHOUT COKE OR A BLAST FURNACE IT ALSO GENERATES ELECTRICITY THE FUNDING WOULD COME UNDER THE DEPARTMENT'S CLEAN COAL TECHNOLOGY DEMONSTRATION PROGRAM 9305060160 930506 WHO'S NEWS KLEERVU INDUSTRIES INC KLEERVU INDUSTRIES INC HOUSTON DANIEL DROR 51YEAROLD CHIEF EXECUTIVE OFFICER OF THIS PHOTO ALBUM MAKER AND HP PARK 45 WERE NAMED COCHAIRMEN MR PARK WHO CONTROLLED PRIVATELY HELD PAS INDUSTRY INC WHICH WAS RECENTLY ACQUIRED BY KLEERVU WAS ALSO NAMED TO THE NEW POSITION OF PRESIDENT 9305060159 930506 WHO'S NEWS WASHINGTON GAS LIGHT CO WASHINGTON GAS LIGHT CO WASHINGTON DC THIS UTILITY COMPANY NAMED SIX SENIOR VICE PRESIDENTS PATRICK E CLARKE 56 YEARS OLD WILL BE RESPONSIBLE FOR CUSTOMER SERVICES MARKETING RESEARCH AND NEW BUSINESS CONSTRUCTION ACTIVITIES JAMES H DEGRAFFENREIDT JR 39 RETAINS RESPONSIBILITY OVER RATES AND REGULATORY AFFAIRS IN ADDITION TO NEW RESPONSIBILITIES OVER THE COMPANY'S DISTRICT OF COLUMBIA VIRGINIA AND MARYLAND DIVISIONS FRANK J HOLLEWA 49 WILL BE RESPONSIBLE FOR DISTRIBUTION GAS SUPPLY AND GENERAL SERVICES OPERATIONS JOHN K KEANE JR 55 ALSO GENERAL COUNSEL WILL CONTINUE TO OVERSEE THE STAFF OF ATTORNEYS AND THE OFFICE OF THE CORPORATE SECRETARY EDMUND W SMALLWOOD 60 WILL BE RESPONSIBLE FOR FINANCE ACCOUNTING AND AUDIT ACTIVITIES AND PATRICIA M WOOLSEY 46 WILL BE RESPONSIBLE FOR HUMAN RESOURCES INFORMATION SYSTEMS AND CORPORATE COMMUNICATIONS FUNCTIONS 9305060158 930506 WHO'S NEWS CABLE & WIRELESS PLC CABLE & WIRELESS PLC LONDON RICHARD YALEN 48 YEARS OLD WAS NAMED VICE PRESIDENT OF MARKETING FOR SWITCHED SERVICES AT WASHINGTON DCBASED CABLE & WIRELESS COMMUNICATIONS INC A UNIT OF THIS LEADING INTERNATIONAL TELECOMMUNICATIONS COMPANY HE SUCCEEDS CONNIE BEYER WHO IS ON A PERSONAL LEAVE OF ABSENCE THE COMPANY SAID MR YALEN WAS VICE PRESIDENT LONG DISTANCE SERVICES AT WASHINGTONBASED TRT/FTC COMMUNICATIONS INC 9305060157 930506 TECHNOLOGY POLAROID INTRODUCES AN INSTANT CAMERA THAT FITS MICROSCOPE CAMBRIDGE MASS POLAROID CORP INTRODUCED AN AUTOMATIC SINGLELENSREFLEX INSTANT CAMERA FOR PHOTOGRAPHING THROUGH A LIGHT MICROSCOPE POLAROID SAID THE MICROCAM SLR COMBINES LOW COST WITH A SOPHISTICATED EXPOSURE AND FILTRATIONCONTROL SYSTEM TO PRODUCE INSTANT COLOR AND BLACKANDWHITE PRINTS IT SAID THE CAMERA SIMPLIFIES PHOTOGRAPHY FOR ANYONE WORKING WITH A MICROSCOPE FROM STUDENTS TO PROFESSIONAL LABORATORY RESEARCHERS THE CAMERA IS PORTABLE WEIGHING JUST 22 POUNDS WITH DIMENSIONS OF 8X7X7 INCHES IT CAN BE ATTACHED TO A MICROSCOPE BY SLIDING ITS LENS DIRECTLY INTO THE MICROSCOPE'S EYEPIECE TUBE POLAROID SAID IT HAS A LIQUIDCRYSTAL DISPLAY PANEL THAT CAN REPORT CAMERA FUNCTIONS IN ENGLISH FRENCH GERMAN ITALIAN JAPANESE AND SPANISH POLAROID SAID THE CAMERA HAS OTHER FEATURES INTENDED TO SIMPLIFY MICROSCOPE IMAGING AND ELIMINATE EXPOSURE AND COLOR FILTRATION PROBLEMS TYPICAL TO PHOTOMICOGRAPHY POLAROID SAID THESE INCLUDE A MICROPROCESSOR BUILTIN DIGITAL LIGHT METER AND COLORCORRECTION FILTER WHICH WORK TOGETHER AUTOMATICALLY TO PRODUCE THE CORRECT EXPOSURE AND FILTRATION FOR COLOR AND BLACKANDWHITE PRINTS THE MICROCAM PRODUCES INSTANT 3X4INCH COLOR OR BLACKANDWHITE PRINTS AT THE END OF EACH EXPOSURE THE CAMERA EJECTS THE FILM WHICH DEVELOPS AUTOMATICALLY WITHOUT THE NEED TO TIME OR PEEL THE PRINT THE FILMS MAY BE USED IN CLEAN ROOMS TYPICAL IN BIOTECHNOLOGY LABORATORIES POLAROID ADDED THE CAMERA AVAILABLE IMMEDIATELY AND MANUFACTURED IN NEWTON MASS HAS A SUGGESTED PRICE OF 795 POLAROID SAID 9305060156 930506 TWA NORTHWEST SALE ATLANTA WORLDSPAN TRAVEL INFORMATION SERVICES SAID IT AGREED TO ACQUIRE THE PARS SERVICE PARTNERSHIP FROM NORTHWEST AIRLINES AND TRANS WORLD AIRLINES IN A TRANSACTION VALUED AT 25 MILLION NORTHWEST IS A UNIT OF WINGS HOLDINGS INC PARS PROVIDES DATAPROCESSING AND NETWORK COMMUNICATIONS SERVICES FOR NORTHWEST TWA WORLDSPAN SINGAPOREBASED ABACUS DISTRIBUTION SYSTEMS PTE LTD AND A NUMBER OF OTHER AIRLINES UNDER TERMS OF THE AGREEMENT WORLDSPAN WILL ACQUIRE SUBSTANTIALLY ALL OF PARS'S ASSETS INCLUDING CONTRACTS HARDWARE SOFTWARE AND LICENSES AND A DATA PROCESSING CENTER WORLDSPAN WHICH IS JOINTLY OWNED BY AFFILIATES OF DELTA AIR LINES NORTHWEST TWA AND ABACUS PROVIDES A RANGE OF TRAVEL INFORMATION SERVICES TO OVER 100000 TRAVEL AGENCIES WORLDWIDE 9305060155 930506 EQUITABLE RESOURCES UNIT AGREES TO BUY AN ARKLA SUBSIDIARY PITTSBURGH EQUITABLE RESOURCES INC SAID ITS EQUITABLE PIPELINE CO UNIT AGREED TO BUY LOUISIANA INTRASTATE GAS CORP FROM ARKLA INC FOR ABOUT 190 MILLION THE DEAL TO BUY LIG'S 1900MILE PIPELINE NETWORK WOULD QUADRUPLE EQUITABLE'S PIPELINE MILEAGE AND EXPAND ITS REACH BEYOND ITS HOME BASE IN THE APPALACHIAN STATES ANALYSTS SAID LIG WOULD GIVE EQUITABLE ACCESS TO THE GULF COAST REGION A CENTER FOR GAS TRADING BOTH TO SUPPLY ITS OTHER PIPELINES AND GAS UTILITY BUSINESS AND TO MARKET THE GAS IT PRODUCES FOR ARKLA THE AGREEMENT IS PART OF A RESTRUCTURING BEGUN LAST YEAR WITH THE AIM OF PAYING DOWN A DEBT LOAD THEN 22 BILLION RESTORING ITS INVESTMENT GRADE RATINGS AND JOINING IN THE RECOVERY ENJOYED BY OTHER GAS PIPELINE COMPANIES THE SHREVEPORT LA GASPIPELINE CONCERN RAISED 402 MILLION IN NOVEMBER FROM THE SALE OF ITS GAS EXPLORATION AND PRODUCTION COMPANY TO SEAGULL ENERGY CO AN ARKLA SPOKESMAN SAID THE COMPANY HAS NEARLY COMPLETED ITS RESTRUCTURING PLAN AND HAS ONLY TWO SMALLER ASSET SALES PENDING IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE EQUITABLE'S SHARES WERE QUOTED AT 39375 UP 150 WHILE ARKLA'S WERE AT 10375 UP 25 CENTS ARKLA HAD OWNED LOUISIANA INTRASTATE ONLY SINCE 1989 WHEN IT BOUGHT THE COMPANY FROM AN INVESTMENT GROUP HEADED BY WASSERSTEIN PERELLA LIMITED PARTNERSHIP FOR 50 MILLION IN STOCK AND ASSUMPTION OF AS MUCH AS 130 MILLION IN DEBT EQUITABLE WHICH HAD 1992 NET INCOME OF 60 MILLION OR 192 A SHARE ON 1992 REVENUE OF 812 MILLION SAID LIG EARNED 251 MILLION IN OPERATING PROFIT ON 296 MILLION IN REVENUE LAST YEAR EQUITABLE SAID IT PLANS TO FINANCE THE PURCHASE WITH SHORTTERM DEBT BUT THAT IT MAY ISSUE EQUITY OR DEBT INSTRUMENTS LATER 9305060154 930506 MICHAELS STORES' SALES RISE IRVING TEXAS MICHAELS STORES INC SAID SALES AT STORES OPEN AT LEAST A YEAR ROSE 2 IN APRIL WHILE TOTAL SALES JUMPED 21 TO 424 MILLION FROM 349 MILLION A YEAR EARLIER FOR ITS FIRST QUARTER ENDED MAY 2 THE ARTS AND CRAFTS RETAILER'S SAMESTORE SALES ROSE 2 TOTAL SALES FOR THE QUARTER GREW 20 TO 113 MILLION FROM 944 MILLION A YEAR EARLIER THE COMPANY SAID 9305060153 930506 CIBAGEIGY UNIT PLANS DISMISSALS SUMMIT NJ CIBAGEIGY CORP'S PHARMACEUTICAL UNIT SAID IT PLANS TO DISMISS ABOUT 100 EMPLOYEES AS PART OF A COSTCUTTING PROGRAM THE COMPANY SAID THE CUTBACKS WILL AFFECT EMPLOYEES AT PLANTS IN SUMMIT WEST CALDWELL AND FLORHAM PARK NJ AND IN ARDSLEY NY CIBAGEIGY SAID IT PLANS TO MAKE ADDITIONAL CUTS IN ITS NATIONAL SALES FORCE OVER THE NEXT FEW WEEKS THE PHARMACEUTICAL UNIT BEGAN ITS COSTCUTTING EFFORT IN JANUARY TO REDUCE OPERATING EXPENSES BY 8 TO 10 CIBAGEIGY IS THE US UNIT OF CIBAGEIGY LTD OF BASEL SWITZERLAND 9305060152 930506 INTERNATIONAL SEOUL TURNS TO EUROPE FOR ARMS AS PENTAGON GUARDS TECHNOLOGY SHIFT STRAINS A KEY ALLIANCE CUTS INTO MARKET SHARE OF US DEFENSE FIRMS BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA HUNGRY FOR WEAPONS TECHNOLOGY THE PENTAGON IS LOATH TO SHARE SOUTH KOREA IS TURNING TO EUROPEAN WEAPONS MAKERS TO HELP MODERNIZE ITS ARSENAL THE SHIFT IS TAKING BUSINESS AWAY FROM US DEFENSE CONTRACTORS AND STRAINING ONE OF AMERICA'S MOST IMPORTANT MILITARY ALLIANCES WHERE ONCE THEY TOTALLY DOMINATED SOUTH KOREA'S 6 BILLIONAYEAR ARMS MARKET COMPANIES SUCH AS MCDONNELL DOUGLAS CORP GENERAL DYNAMICS CORP AND BOEING CO ARE RAPIDLY LOSING MARKET SHARE AT A TIME WHEN THEY NEED INTERNATIONAL SALES TO COMPENSATE FOR DWINDLING DEMAND AT HOME THE CULPRIT THE COMPANIES SAY IS THE PENTAGON WHICH RESTRICTS THE TRANSFER OF TECHNOLOGY TO SOUTH KOREAN COMPANIES THE US GOVERNMENT SAYS KOREA IS OUR STRONGEST ALLY IN ASIA BUT THEN THEY SAY THEY CAN'T HAVE THIS THAT OR THE OTHER SAYS BRUCE WHITEHEAD COCHAIRMAN OF THE TECHNOLOGY COMMITTEE OF THE AMERICAN CHAMBER OF COMMERCE IN SOUTH KOREA AND PRESIDENT OF LITTON KOREA LTD THE LOCAL ARM OF US DEFENSE ELECTRONICS PRODUCER LITTON INDUSTRIES INC EITHER THEY'RE NOT A RELIABLE ALLY IN WHICH CASE LET'S STOP CALLING THEM ONE OR THEY ARE WHILE SOUTH KOREA'S INCREASINGLY COMPETITIVE ARMS MARKET IS IRRITATING ALREADY PRICKLY USSOUTH KOREAN TRADE RELATIONS IT HAS TACTICAL IMPLICATIONS AS WELL AS SOUTH KOREA DIVERSIFIES ITS SOURCE OF WEAPONRY DIPLOMATS SAY IT JEOPARDIZES ITS ABILITY TO REPLENISH SPARE PARTS AND AMMUNITION IN THE EVENT OF A WAR WITH NORTH KOREA SUCH CONCERNS HAVE DEEPENED WITH THE APPARENT RISE OF KIM JONG IL THE UNPREDICTABLE SON OF NORTH KOREA'S AGING STALINIST LEADER KIM IL SUNG AND PYONGYANG'S DECISION TO WITHDRAW FROM THE NUCLEAR NONPROLIFERATION TREATY IF WAR EVER BROKE OUT THE UNITED NATIONS FORCES MAY OR MAY NOT COME BACK IN BUT IT'S CERTAIN WE WILL SAYS A US SECURITY OFFICIAL WHAT WE'RE TELLING THE KOREANS IS TO MAKE IT EASY FOR OUR SUPPLY LINES TO FIT THEIRS YET SEOUL APPEARS TO BE FOCUSING MORE ON THE POWER BALANCE IN ASIA THAN THE THREAT FROM PYONGYANG IN THE PAST TWO YEARS SEOUL'S DEFENSE PLANNERS HAVE REDUCED ARMS PROCUREMENT IN FAVOR OF PARTNERSHIPS BETWEEN FOREIGN AND LOCAL COMPANIES TO BUILD THE WEAPONS IN SOUTH KOREA THE AIM IS TO BUILD AN INDIGENOUS WEAPONS INDUSTRY TO PROTECT THE PENINSULA AFTER REUNIFICATION WITH THE NORTH THE PLAN RELIES HEAVILY ON THE US MILITARY UMBRELLA AND EUROPE'S WILLINGNESS TO SHARE ITS DEFENSE TECHNOLOGY OFFICIALS OF SOUTH KOREA'S DEFENSE BUREAUCRACY DECLINED TO BE INTERVIEWED AND PENTAGON OFFICIALS FAILED TO RETURN ANSWERS TO WRITTEN QUESTIONS THOUGH A US DEFENSE DEPARTMENT SPOKESMAN SAID HIS SUPERIORS WERE AWARE OF THE PROBLEM AND ARE LOOKING INTO IT SOUTH KOREA'S WEAPONS PROCUREMENT BUDGET TOTALED 6 BILLION IN 1990 ABOUT 27 OF WHICH WAS EARMARKED FOR FOREIGN WEAPONS ACCORDING TO GOVERNMENT DATA NEARLY THREEQUARTERS OF THAT WAS SPENT ON US ARMS DOWN FROM 90 IN 1985 MORE RECENT OFFICIAL DATA ISN'T AVAILABLE BUT PEOPLE AT THE DEFENSE LOGISTICS AGENCY THE DEFENSE MINISTRY'S PROCUREMENT ARM SAY THE US SHARE FELL TO 55 IN 1992 THE US IS STILL SOUTH KOREA'S MAJOR SUPPLIER OF AIRCRAFT GENERAL DYNAMICS FOR EXAMPLE HAS A 52 BILLION CONTRACT FOR THE COPRODUCTION AND OFFTHESHELF DELIVERY OF F16 JET FIGHTERS BUT THE SOUTH KOREAN NAVY WHICH ACCOUNTS FOR A THIRD OF FOREIGN ARMS PURCHASES IS ACTIVELY COURTING EUROPEAN AND ISRAELI DEFENSE COMPANIES A HOTLY CONTESTED BID LAST YEAR TO SUPPLY SOUTH KOREA WITH GROUNDTOAIR MISSILES ILLUSTRATES THE TREND THE TENDER BOILED DOWN TO GENERAL DYNAMICS' STINGER AND THE MISTRAL PRODUCED BY MATRA DEFENSE A UNIT OF FRANCE'S MATRAHACHETTE SA THE LONGERRANGE FRENCH MISSILE OFFERS SLIGHTLY BETTER TECHNOLOGY BUT AT A 30 PRICE PREMIUM THE SOUTH KOREANS WERE LEANING TOWARD THE STINGER SAY PEOPLE CLOSE TO THE NEGOTIATIONS BUT BALKED AT THE PENTAGON'S REFUSAL TO SHARE THE MISSILE'S GUIDANCE AND WARHEAD TECHNOLOGY MATRA WON THE CONTRACT ULTIMATELY WORTH ABOUT 500 MILLION THE PENTAGON SAYS DIVULGING STINGER TECHNOLOGY RISKS SPREADING SIMILAR HANDHELD WEAPONS TO TERRORISTS US DEFENSE CONTRACTORS POINT OUT THAT THE SAME OR EQUIVALENT WEAPONS ARE ALREADY AVAILABLE ON WORLD MARKETS BUT TECHNOLOGY RESTRICTIONS AREN'T THE ONLY REASON US COMPANIES ARE LOSING THEIR GRIP ON THE SOUTH KOREAN MARKET THEIR EUROPEAN RIVALS ARE SIMPLY MORE AGGRESSIVE TAKE THE SOUTH KOREAN NAVY'S DESTROYER PROGRAM THE HEART OF A PROPOSED FLEET THAT WOULD EXTEND SOUTH KOREAN NAVAL POWER BEYOND ITS COASTAL WATERS THE PROJECT'S BUDGET IS CLASSIFIED THOUGH DEFENSE EXPERTS ESTIMATE THAT EACH OF THE 13 TO 16 VESSELS IN THE PROPOSED FLEET WILL COST SEVERAL HUNDRED MILLION DOLLARS THE GOVERNMENT HAS TENDERED ABOUT 13 RELATED CONTRACTS FOR THE PROTOTYPE ALL BUT ONE OF WHICH HAVE BEEN WON BY NONUS COMPANIES BUT US COMPANIES HAVE WON SUBCONTRACTS VALUED AT ABOUT 70 MILLION THE PROBLEM IS THE US HAS HAD A CAPTIVE MARKET FOR 40 YEARS SAYS A EUROPEAN DIPLOMAT JUST AS KOREA HAS HAD TO ADAPT TO THE COLD REALITIES OF A MORE COMPETITIVE WORLD SO TOO MUST THE AMERICANS BUT US POLICY MAKERS AREN'T IN A SPORTING MOOD PARTICULARLY THOSE WHO CONSIDER THE US MILITARY PRESENCE IN SOUTH KOREA AS A NEEDLESS BURDEN IN THE POSTCOLD WAR WORLD AS SOUTH KOREA'S DEFENSE ESTABLISHMENT TURNS AWAY FROM US CONTRACTORS SUPPORT FOR AN EARLY US WITHDRAWAL FROM THE PENINSULA COULD INTENSIFY SEOUL IS ALREADY UNDER PRESSURE TO PAY MORE OF THE COST OF THE US MILITARY PRESENCE IN SOUTH KOREA EXPECTED TO REACH 900 MILLION A YEAR BY 1995 SECURITY EXPERTS ALSO SAY SEOUL IN ITS DRIVE TO ACQUIRE TECHNOLOGY FROM WHOEVER WILL SELL IT IMPERILS THE EFFECTIVENESS OF THE JOINT USSOUTH KOREAN DEFENSE SHOULD NORTH KOREA ATTACK THOUGH THE EUROPEANS CAN DELIVER ON TECHNOLOGY TRANSFER THEIR ABILITY TO SUPPLY THE SYSTEMS THEY SELL IN WARTIME IS LESS CERTAIN 9305060151 930506 DATRON SYSTEMS TO RELOCATE SIMI VALLEY CALIF DATRON SYSTEMS INC SAID IT PLANS TO MOVE ITS CORPORATE OFFICE INTO FACILITIES OF A SUBSIDIARY IN ESCONDIDO CALIF THE MOVE FOLLOWS THE ASSUMPTION OF ADDITIONAL EXECUTIVE DUTIES AT THE SUBSIDIARY BY DAVID A DERBY DATRON PRESIDENT AND CHIEF EXECUTIVE OFFICER THE MAKER OF SPECIALIZED COMMUNICATIONS SYSTEMS SAID IT EXPECTS TO COMPLETE THE RELOCATION BY SEPT 1 9305060150 930506 WHITMAN TO BUY BACK SHARES CHICAGO WHITMAN CORP SAID ITS DIRECTORS AUTHORIZED THE REPURCHASE OF AS MANY AS 25 MILLION SHARES OF ITS COMMON STOCK OR 23 OF THE COMPANY'S COMMON STOCK OUTSTANDING THE BOTTLER SAID THE SHARES WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING THE COMPANY'S EMPLOYEE BENEFIT AND LONGTERM INCENTIVE PROGRAMS WHITMAN SHARES WERE QUOTED AT 13375 DOWN 125 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING 9305060149 930506 MARKETSCAN TORTILLA CHIPS TEMPT SNACKERS WITH CHANGES BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL YELLOW IS YESTERDAY'S COLOR WHEN IT COMES TO TORTILLA CHIPS TRYING TO SPICE UP THE SLOWGROWING TORTILLACHIP BUSINESS BIG SNACKFOOD COMPANIES ARE INTRODUCING A SLEW OF PRODUCTS MADE FROM WHITE RATHER THAN YELLOW CORN AS A NOTABLE EXAMPLE THE FRITOLAY DIVISION OF PEPSICO INC LONGTIME MAKER OF DORITOS YELLOW TORTILLA CHIPS ROLLED OUT ITS WHITECORN DORITOS TORTILLA THINS NATIONWIDE WITH MUCH FANFARE IN LATE MARCH DEVOTING AN UNPRECEDENTED 100 MILLION IN ADVERTISING SUPPORT THERE'S A PRETTY FUNDAMENTAL SHIFT GOING ON BETWEEN HIGHLY SEASONED TORTILLA CHIPS LIKE YELLOW DORITOS AND NEWAGE CHIPS THAT ARE MADE FROM WHITE CORN SAYS STEVE LIGOURI FRITOLAY'S VICE PRESIDENT OF BRAND MARKETING THE PRIMARY DIFFERENCE LIES IN THE TASTEBUDS YELLOW CORN SAY THE SNACK EXPERTS HAS A DOMINANT CORNY TASTE THAT CAN MASK THE TASTE OF SOME SEASONINGS WHITE CORN HAS A SWEETER LIGHTER TASTE THAT WORKS WELL AS A BASE FOR DIFFERENT FLAVORINGS IN SHORT A MORE VERSATILE PRODUCT SAY SOME INDUSTRY OBSERVERS A SUBTLE DIFFERENCE PERHAPS BUT IT'S A DISTINCTION THAT IS SPURRING SALTYSNACK MAKERS TO CHURN OUT NEW VARIETIES OF TORTILLA CHIPS INCLUDING NEW SHAPES SIZES AND FLAVORS CINNAMON FOR ONE IN ADDITION TO THE ACTIVITY AT FRITOLAY ANHEUSERBUSCH COS IS CURRENTLY ROLLING OUT ITS OWN WHITECORN PRODUCT EAGLE SNACKS' EL GRANDE RESTAURANTSTYLE TORTILLA CHIPS AND KEEBLER A UNIT OF UNITED BISCUITS HOLDINGS PLC IS LAUNCHING A FLOUR TORTILLA CHIP CALLED CHACHO'S TORTILLA CHIPS HAVE BECOME A POPULAR MAINSTREAM SNACK MAKING UP ROUGHLY 20 OF SALTYSNACK PURCHASES WITH A MARKET SHARE SECOND ONLY TO POTATO CHIPS ACCORDING TO THE SNACK FOOD ASSOCIATION BUT OVERALL DOLLAR SALES OF TORTILLA CHIPS IN SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS WERE UP A MODEST 34 FOR THE 52WEEK PERIOD ENDED MARCH 21 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE OBSERVERS NOTE THAT THE RECENTLY BOOMING POTATOCHIP BUSINESS HAS DRAINED SOME SHORTTERM GROWTH FROM TORTILLA CHIPS AND THAT THE TORTILLACHIP MARKET IS MATURE BY CONTRAST THE US MARKET FOR SALSA TORTILLA CHIPS' MOST COMMON COMPANION FOOD IS YOUNGER AND BURGEONING A TASTE PREFERENCE FOR A WHITER CRISPIER CHIP WHETHER MADE FROM FLOUR OR CORN HAS EMERGED FROM FULLSERVICE MEXICAN RESTAURANTS WHICH OFFER SUCH CHIPS AS APPETIZERS SAY INDUSTRY OBSERVERS CHICHI'S THE MEXICAN RESTURANT CHAIN HAS EVEN LICENSED A LOUISVILLE KY COMPANY TO SELL BAGS OF WHITECORN TORTILLA CHIPS PACKAGED FOR RETAIL SALE UNDER THE CHICHI'S NAME TODAY THE WORDS 100 WHITE CORN AND RESTAURANT STYLE ARE COMMONLY SEEN ON MANY TORTILLACHIP PACKAGES FRITOLAY WITH A 55 SHARE OF THE TORTILLACHIP MARKET HAS WATCHED TWO BRANDS SUFFER FROM THE MOVE TO A THINNER LIGHTERTASTING WHITECORN CHIP SALES OF DORITOS ITS FLAGSHIP SPICY YELLOWCORN CHIP BRAND WERE OFF 53 FOR THE 52 WEEKS ENDED MARCH 21 SANTITAS ANOTHER YELLOWCORN PRODUCT FROM FRITO HAD A 225 DROP IN SALES THE SHIFT CAN ALSO BE SEEN IN THE CORN FIELDS WHERE FARMERS LIKE ROB O'MALLEY OF O'MALLEY GRAIN INC IN CENTRAL ILLINOIS ARE SEEING HEIGHTENED DEMAND FOR WHITE CORN IN 1987 MR O'MALLEY GOT ALL OF HIS SALES FROM PLANTING YELLOW CORN TODAY ABOUT 60 OF HIS BUSINESS OR ROUGHLY 5000 ACRES COMES FROM WHITE CORN IT HAS THE TASTE FLAVOR OR WHAT THEY CALL IN THE INDUSTRY THE BITE' THAT MORE CONSUMERS WANT HE SAYS EVERYBODY IS ON THIS LIGHT KICK NOW BOTH FRITOLAY AND EAGLE SNACKS HAVE REVAMPED SOME OF THEIR ESTABLISHED TORTILLACHIP PRODUCTS TO GIVE ITS OLD TORTILLA CHIP NEW APPEAL EAGLE SWITCHED FROM YELLOW TO WHITE CORN THINNED OUT THE CHIP REDUCED THE AMOUNT OF SEASONING AND GAVE IT A NEW NAME EAGLE TORTILLA THINS SALES WERE UP 52 FOR THE 52WEEK PERIOD FRITOLAY'S TOSTITOS BRAND ALSO GOT A FACE LIFT OF SORTS ABOUT TWO YEARS AGO THE CORN WENT FROM YELLOW TO WHITE LESS OIL WAS USED AND THE LABEL RESTAURANT STYLE WAS ADDED THANKS TO THE CHANGES THE TOSTITOS BRAND HAS GONE FROM A 100 MILLION BUSINESS IN 1990 TO 350 MILLION IN 1992 ACCORDING TO MR LIGOURI THE FRITOLAY VICE PRESIDENT IT'S A LITTLE THING BUT IT'S THE LITTLE THINGS THAT TURN CONSUMERS ON HE SAYS WHILE THE NATIONAL SNACK COMPANIES LAUNCH NEW OR REVITALIZED PRODUCTS SOME QUESTION WHETHER THE ACTIVITY WILL REALLY GENERATE NEW SALES OR JUST MOVE THE SAME POOL OF DOLLARS AROUND SUPERMARKET SHELVES ARE CRAMMED WITH TOO MANY SALTY SNACK PRODUCTS THAT LOOK ALIKE SAYS CAROLE KORB A LOS ANGELES MARKETING CONSULTANT MS KORB WORKS FOR A CALIFORNIA ORGANICSNACKFOOD COMPANY CALLED GARDEN OF EATIN' WHICH RECENTLY INTRODUCED AN ORGANICALLY GROWN WHITECORN TORTILLA CHIP CALLED TOTOPOS CANTINA CHIPS BUT PROMOTING A WHITER CHIP WHERE THE ONLY KEY DIFFERENCE IS COLOR NOT NUTRITIONAL CONTENT WON'T BUILD NEW BUSINESS SHE SAYS WHETHER CONSUMERS ARE GOING TO BUY A YELLOW DORITOS OR WHITE WILL JUST SHIFT BUSINESS SHE SAYS NOTING THAT THE NEW DORITOS WHITE CORN CHIP IS NOT A NUTRIONALLY LIGHTER CHIP IT'S JUST MADE A LITTLE THINNER I DON'T SEE THAT BRINGING IN A NEW CONSUMER KEVIN BOWLER PRESIDENT OF EAGLE SNACKS DISAGREES SAYING NEW PRODUCTS WILL CAUSE THE ENTIRE CATEGORY TO GROW TORTILLA CHIPS NOW COME IN ALL SHAPES AND SIZES ROUND RECTANGULAR OR TRIANGULAR AND CAN BE EATEN IN DIFFERENT WAYS HE SAYS SOME CAN BE POSITIONED FOR DIPPING IN SALSA HE SAYS OTHER ARE BEST USED TO FORM THE BASE FOR APPETIZERS LIKE NACHOS AND STILL OTHERS ARE BEST EATEN PLAIN RIGHT OUT OF THE BAG WITH ALL THE NEW PRODUCT DEVELOPMENT YOU'LL SEE A RESHAPING IN HOW CONSUMERS PURCHASE TORTILLA CHIPS MR BOWLER PREDICTS APPARENTLY LEFT OUT OF THIS RESHAPING ARE MAKERS OF PRIVATELABEL AND GENERICBRAND TORTILLA CHIPS SALES OF THESE SNACKS WERE EITHER FLAT OR DOWN FOR THE 52WEEK PERIOD ENDING MARCH 21 FRITOLAY AND EAGLE SNACK EXECUTIVES MAINTAIN THAT CONSUMERS PREFER TO BUY BRANDNAME SNACKS BUT MORE IMPORTANTLY THEY SAY THEIR COMPANIES HAVE KEPT PRICES COMPETITIVE WITH THE PRIVATELABEL PRODUCTS INTENSE COMPETITIVE PRESSURE TO ACQUIRE VALUABLE SHELF SPACE IN STORES HAS HAMPERED GROWTH IN THE PRIVATELABEL AND GENERIC SEGMENTS SAYS DON VILES OF MCCLEARY INDUSTRIES AN ILLINOIS PACKER OF PRIVATELABEL SNACKS MANY RETAILERS CHARGE BY THE FOOT OR REQUEST A SHELF SPACE BONUS FEE HE SAYS IF YOU WANT TO PUT YOUR PRODUCT ON THEIR SHELF IT'S GOING TO COST YOU HE SAYS ESTIMATING SUCH FEES COULD EASILY TRANSLATE INTO 600 PER LINEAR FOOT OF SPACE RETAILERS ARE WARY ABOUT STOCKING ITEMS THAT DON'T MOVE HAVING SUCH FEES SAYS MR VILES WEEDS OUT THE SLOWER MOVING ITEMS AND MAKES ROOM FOR THE NEW STUFF THE FASTER MOVING STUFF AND THOSE PRODUCTS THAT CAN BE MORE COMPETITIVELY PRICED MARKETERS ARE COUNTING ON A FLURRY OF NEW PRODUCTS INCLUDING DORITOS TORTILLA THINS EAGLE EL GRANDE AND CHACHO'S TO SPICE UP SALES OF TORTILLA CHIPS 9305060148 930506 LSB INDUSTRIES GETS SOVIET JOB OKLAHOMA CITY LSB INDUSTRIES INC SAID A UNIT SIGNED A LETTER OF INTENT TO SUPPLY EQUIPMENT FOR MANUFACTURING ENVIRONMENTAL CONTROL PRODUCTS TO A CUSTOMER IN THE FORMER SOVIET UNION FOR CASH OR AN INKIND PAYMENT VALUED AT 49 MILLION IF THE CUSTOMER CAN'T PAY IN CASH LSB A DIVERSIFIED COMPANY ENGAGED IN FINANCIAL MANUFACTURING ENGINEERING AND MARKETING SERVICES SAID IT AGREED TO ACCEPT ANHYDROUS AMMONIA IN PAYMENT FOR THE EQUIPMENT THE COMPANY SAID ITS CHEMICAL BUSINESS IS A MAJOR USER OF ANHYDROUS AMMONIA IF A DEFINITIVE AGREEMENT IS FINALIZED THIS YEAR AS ANTICIPATED LSB SAID IT EXPECTS TO BE PAID IN 1994 AND 1995 9305060147 930506 LEISURE & ARTS FILM NOT JUST ANOTHER ACTIONPICTURE HUNK BY JULIE SALAMON BRUCE LEE THE POPULAR MARTIALARTS STAR WHO DIED 20 YEARS AGO AT THE AGE OF 32 WASN'T JUST ANOTHER ACTIONPICTURE HUNK IN HIS FILMS HE MAY HAVE LEFT BEHIND A TRAIL OF BATTERED OPPONENTS BUT HE BEAT THEM BACK WITH A DANCER'S GRACE THE PICTURES MIGHT HAVE BEEN JUNKY BUT LEE'S ARTISTRY MADE THEM BEAUTIFUL JUNK SO IT MAKES SENSE THAT DRAGON THE BRUCE LEE STORY HAS THE SPIRIT AND EMOTIONALITY OF A GOOD BROADWAY MUSICAL ONLY THE BIG SET PIECES AREN'T SONGANDDANCE NUMBERS BUT KUNG FU FIGHTS JOHN CHEUNG HAS CHOREOGRAPHED THE FIGHTS WITH WIT AND STYLE YOU GET CAUGHT UP IN THE THEATRICALITY OF THE LIGHTNINGFAST MOVES THE STORY NESTLED BETWEEN THE FIGHT SCENES IS RELAYED WITH SURPRISING INTELLIGENCE AND AFFECTION THERE'S A CERTAIN AMOUNT OF BIOPIC PREDICTABILITY THE BRIGHTNESS AND ENTHUSIASM ON THE WAY TO THE TOP THE INEVITABLE IN THIS KIND OF MOVIE SOURNESS THAT FOLLOWS SUCCESS AND LINDA LEE CADWELL LEE'S WIFE HAS TOO LARGE AND TOO ONEDIMENSIONAL A PART SHE'S RELENTLESSLY DEVOTED AND GOODNATURED THIS IS EXPLAINED HOWEVER BY THE CREDITS THE MOVIE IS BASED ON HER MEMOIR BRUCE LEE THE MAN ONLY I KNEW AND REQUIRED HER APPROVAL LUCKILY SHE'S PLAYED BY AN ATTRACTIVE ACTRESS LAUREN HOLLY WHO MANAGES TO WEAR THE HALO LIKE A CUTE HAT AND LUCKILY THE BRUCE LEE SHE KNEW AT LEAST AS INTERPRETED BY THE FILMMAKERS WAS A COMPLICATED CHARMING MAN WHOSE FORCEFULNESS WASN'T LIMITED TO HIS ASTONISHING RAPIDFIRE MOVEMENT BY THE TIME OF HIS EARLY DEATH HE HAD EXPERIENCED A LOT RACISM IMMIGRATION PARALYSIS SUCCESS FAILURE STARDOM AND A PERSISTENT SENSE OF BEING HAUNTED BY MYSTERIOUS DEMONS THE PICTURE'S MAJOR ACCOMPLISHMENT IS THE WAY IT MAKES THIS DEMONIC PRESENCE INTRODUCED TO LEE AT AN EARLY AGE BY HIS FATHER SEEM LIKE A PLAUSIBLE PSYCHOLOGICAL FORCE DRAGON OPENS LIKE A HORROR MOVIE WITH A SMALL CHINESE BOY CONFRONTING A FRIGHTENING DEMON IT'S EITHER A DREAM OR A VISION DEPENDING HOW SERIOUSLY ONE BELIEVES IN FOLKLORE LEE'S FATHER TOOK IT VERY SERIOUSLY WHICH IS WHY HE SENT HIS SON TO STUDY MARTIAL ARTS AT AN EARLY AGE TO PREPARE HIM FOR THE INEVITABLE BATTLE WITH THE MONSTER BENT ON STEALING HIS SOUL DIRECTOR ROB COHEN HAS SHOT THE FILM IN THE MYSTICAL STYLE OF A KUNG FU MOVIE THE PICTURE GLOWS A BIT AS THOUGH IN MEMORIAM BUT LEE'S LIFE WAS TRAGIC NOT GLOOMY AND THE FILM REFLECTS THAT THE ROADTOSUCCESS SEQUENCES HAVE A NICE BOUNCE TO THEM PORTRAYING LEE AS A MISCHIEVOUS CHARACTER A COCKY CHARMER WHO CAN'T WAIT TO DEMONSTRATE HIS REMARKABLE DAZZLING GIFT MESSRS COHEN AND CHEUNG GIVE HIM PLENTY OF OPPORTUNITIES STARTING WITH AN AMUSING SET PIECE IN A HONG KONG DANCE HALL A BUNCH OF AUSTRALIAN SAILORS SHOW UP DRUNK AND PREPARED TO BE DISORDERLY ONE OF THEM HASSLES A YOUNG COUPLE SHOVES ASIDE THE MAN AND GRABS THE WOMAN LEE MAKES A BIG ENTRANCE AND THIS SLENDER YOUNG MAN PROCEEDS TO NEATLY DEMOLISH THE AUSTRALIANS WHEN IT'S OVER YOU HALF EXPECT HIM TO REPLACE HIS RIPPED SHIRT WITH TOP HAT AND TAILS AND FINISH WITH A GLIDE AROUND THE FLOOR WITH THE WOMAN HE'S RESCUED INSTEAD HE GOES HOME WHERE HIS FATHER YELLS AT HIM FOR GETTING INTO TROUBLE AGAIN THE FATHER EVER FEARFUL FOR HIS SON'S LIFE THAT DEMON SHIPS BRUCE OFF TO AMERICA THE FILMMAKERS DEFTLY SHOW HOW THE COCKY OPTIMIST BECAME DEFENSIVE WHEN HE MAKES THE BOAT CROSSING FROM HONG KONG TO SAN FRANCISCO AND BLATHERS ON ABOUT HIS BIG PLANS AN OLDER MAN A TEACHER DEFLATES HIM NOT A CHINAMAN'S CHANCE THAT'S WHAT THEY SAY LEE STARTS GETTING THE MESSAGE WHEN HE GOES TO SEE BREAKFAST AT TIFFANY'S AND FINDS MICKEY ROONEY'S GOOFY BUCKTOOTHED CARICATURE OF A CHINESE MAN HE WALKS OUT OF THE MOVIE BUT FINDS HE CAN'T AVOID RACISM AFTER HE BECOMES A STAR OF THE KUNG FU CIRCUIT AND IS BROUGHT IN TO AUDITION FOR THE PART OF KATO THE SIDEKICK ON THE POPULAR GREEN HORNET TELEVISION SERIES AN EXECUTIVE SAYS TO THE PRODUCER HE'S AWFULLY ORIENTAL HE'S PLAYING ORIENTAL THE PRODUCER REPLIES LEE OVERCAME ALL THAT TO BECOME KATO AND THEN TO BECOME SOMETHING MUCH BIGGER TO BECOME BRUCE LEE THE QUESTION REMAINS COULD ANYONE ADEQUATELY PORTRAY A FAMOUS CHARACTER LIKE THAT THE ANSWER THE SOONTOBE FAMOUS ACTOR JASON SCOTT LEE NO RELATION THIS YOUNG ACTOR HAS STARRED IN ONLY TWO MOVIES THE FIRST MAP OF THE HUMAN HEART WAS RELEASED JUST LAST MONTH WITH HIS ADORABLE SMILE AND SPLENDID PHYSIQUE HE MIGHT BE DISMISSED AS JUST ANOTHER PRETTY FACE OR WITH HIS ATHLETICISM HE HANDLES THE KUNG FU SCENES WITH STARTLING SKILL FOR A NOVICE AT MARTIAL ARTS HE MIGHT BE AN ACTION HERO BUT HE HAS THE RANGE AND CHARM OF A MOVIE STAR INDEED MAYBE THIS PICTURE IS A MUSICAL AFTER ALL YET ANOTHER REMAKE OF A STAR IS BORN YOU CAN COMPLAIN A LOT ABOUT PAUL MAZURSKY'S NEW FILM THE PICKLE THE STORY OF A RESPECTED DIRECTOR WHO SELLS OUT AND MAKES A DUMB TEENAGE PICTURE TO REVIVE HIS CAREER THE MOVIE FOLLOWS THIS NARCISSISTIC MAN HARRY STONE IN THE HOURS PRECEDING THE PREVIEW OF THE FILM AS HE TRIES TO GATHER COMFORT FROM HIS MISTRESS HIS EXWIVES HIS AGENT HIS CHILDREN HIS GRANDCHILD THE CASTING IS OFF THE PICTURE'S POINT IS FUZZY THE SATIRIC FILMWITHINTHEFILM ISN'T VERY FUNNY HOWEVER IN ITS LOPSIDED WAY THE MOVIE HAS SOME VERY FUNNY THINGS TO SAY ABOUT VANITY PARTICULARLY SHOWBUSINESS VANITY AND IT CONTAINS A COUPLE OF WONDERFUL PERFORMANCES NOTABLY SHELLEY WINTERS AS THE DIRECTOR'S MOTHER DYAN CANNON AS ONE OF THE EXWIVES AND BARRY MILLER AS THE BARELY POSTADOLESCENT STUDIO CHIEF DEDICATED TO HELPING HARRY STONE SELL OUT VIDEO TIP THERE'S NOTHING TO COMPLAIN ABOUT IN FEDERICO FELLINI'S MOVIE ON THE SUBJECT OF AN ANGSTRIDDEN FILM DIRECTOR 8 1/2 EVERYTHING ABOUT IT IS JUST ABOUT PERFECT ESPECIALLY MARCELLO MASTROIANNI 9305060146 930506 CREDIT MARKETS TREASURY SLASHES SALES OF LONGTERM BONDS BY LUCINDA HARPER AND TOM HERMAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION IN AN EFFORT TO CUT BORROWING COSTS AND SAVE TAXPAYERS' MONEY SAID IT WILL SLASH THE GOVERNMENT'S SALES OF 30YEAR TREASURY BONDS AND STOP SELLING SEVENYEAR NOTES ENTIRELY TREASURY OFFICIALS PREDICTED THE MOVE WILL PRODUCE BIG SAVINGS SINCE THE GOVERNMENT SHOULD BE ABLE TO SELL SHORTERTERM TREASURY NOTES AND BILLS AT LOWER INTEREST RATES SOME ANALYSTS THINK THE MOVE COULD ALSO HELP REDUCE LONGTERM INTEREST RATES THROUGHOUT THE ECONOMY BY REDUCING THE SUPPLY OF LONGTERM BONDS BUT BOND TRADERS WHO GENERALLY HAD ANTICIPATED SOME CUTBACK IN LONGTERM TREASURY BOND SALES SHRUGGED ALTHOUGH PRICES OF LONGTERM BONDS INCHED HIGHER YESTERDAY PRICES OF SHORTERTERM ISSUES FELL SLIGHTLY RESULTING IN A ONLY A TINY REDUCTION IN THE YAWNING GULF BETWEEN SHORTTERM RATES AND LONGTERM RATES THE OVERALL MARKET RESPONSE WAS LUKEWARM SAID JAMES S FRALICK CODIRECTOR OF ECONOMIC ANALYSIS AT MORGAN STANLEY & CO THE TOTAL AMOUNT OF 30YEAR BONDS TO BE SOLD BY THE TREASURY NEXT YEAR COULD BE ABOUT 45 LESS THAN LAST YEAR WHEN IT SOLD ABOUT 4030 BILLION OF 30YEAR SECURITIES THE TREASURY WHICH TRADITIONALLY HAS SOLD 30YEAR BONDS EVERY QUARTER SAID IT PLANS TO SELL THEM ONLY TWICE A YEAR IN FEBRUARY AND AUGUST IN THE FUTURE IT SAID IT PLANS TO SELL IN THE NEIGHBORHOOD OF 22 BILLION OF 30YEAR BONDS ANNUALLY BUT THIS YEAR IN A TRANSITION TO THE NEW SYSTEM THE TREASURY ALSO WILL SELL 30YEAR BONDS NEXT WEEK AND THUS IT ANTICIPATES THAT 30YEAR BOND SALES FOR 1993 WILL TOTAL ABOUT 2850 BILLION TO COMPENSATE FOR THE REDUCTION IN 30YEAR BONDS AND THE ELIMINATION OF THE SEVENYEAR NOTE THE TREASURY PLANS TO SELL MORE SECURITIES WITH MATURITIES OF THREE YEARS OR LESS BUT THE TREASURY'S MOVE TO SHORTEN THE AVERAGE MATURITY OF ITS DEBT COMES AT A TIME WHEN MANY CORPORATIONS ARE DOING THE OPPOSITE RUSHING TO SELL LONGTERM BONDS AND REDUCING THEIR RELIANCE ON SHORTERTERM DEBT LURED BY THE LOWEST LONGTERM BORROWING COSTS IN ABOUT TWO DECADES AND FEARFUL THAT RATES WILL RISE IN COMING MONTHS CORPORATE TREASURERS HAVE BEEN SELLING LARGE AMOUNTS OF LONGERTERM BONDS TO LOCK IN TODAY'S RATES THE TREASURY'S GENERAL IDEA OF SHORTENING THE DEBT RIGHT NOW IS A VERY BAD ONE SAID LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES INC THE TREASURY SHOULD BE TRYING TO LOCK IN TODAY'S HISTORICALLY LOW INTEREST RATES RATHER THAN PASSING THEM UP IN MARCH A COMMITTEE OF BOND DEALERS AND MONEY MANAGERS WHO ADVISE THE TREASURY UNANIMOUSLY RECOMMENDED AGAINST THE DECISION THAT THE TREASURY ANNOUNCED YESTERDAY IT CONCLUDED THAT THE TREASURY'S CURRENT DEBT MIX IS BROADLY APPROPRIATE WALL STREET ECONOMISTS HAVE BEEN ISSUING ANALYSES ARGUING AGAINST ANY MOVE TO CURTAIL SALES OF 30YEAR BONDS EVEN AS EXPECTATIONS OF SUCH A MOVE HELPED FUEL A MAJOR BONDMARKET RALLY DEFENDING THE ADMINISTRATION'S DECISION TREASURY SECRETARY LLOYD BENTSEN SAID YESTERDAY THAT THE CAREFULLY CRAFTED AND MODERATE MOVE WILL PRODUCE REAL SAVINGS ON INTEREST COSTS OVER TIME BY SHORTENING THE MATURITY OF OUTSTANDING TREASURY DEBT IN THE CREDIT MARKETS LATE YESTERDAY THE TREASURY'S BENCHMARK 30YEAR BONDS TRADED AT 104 9/32 UP 1/8 POINT FROM THE PREVIOUS DAY ITS YIELD DIPPED TO 678 FROM 679 TENYEAR NOTES ROSE 5/32 POINT TO 102 21/32 WHILE THE YIELD FELL TO 588 FROM 590 BUT THE PRICE OF THREEYEAR TREASURY NOTES FELL TO 101 5/32 FROM 101 9/32 RAISING THE YIELD TO 415 FROM 411 THE YIELD ON TWOYEAR NOTES ROSE TO 379 FROM 373 FIVEYEAR NOTES AND SEVENYEAR NOTES WERE LITTLE CHANGED SEVENYEAR NOTES LATE YESTERDAY YIELDED 547 DOWN SLIGHTLY FROM 548 TUESDAY CORPORATE BOND PRICES REGISTERED A SIMILAR PATTERN PRICES OF LONGTERM BONDS ROSE ABOUT 1/8 POINT BUT SHORTERTERM ISSUES DECLINED BY ABOUT 1/8 POINT MUNICIPAL BOND PRICES GAINED ABOUT 1/4 POINT EVEN AS A LARGE WAVE OF NEW STATE AND LOCAL GOVERNMENT DEBT ISSUES FLOODED THE MARKET BY SOME ESTIMATES ABOUT 2 BILLION OF NEW ISSUES WAS OFFERED TO INVESTORS TAXFREE BONDS HAVE BEEN SELLING PARTICULARLY WELL IN RECENT MONTHS BECAUSE OF INVESTORS' CONCERN ABOUT CLINTON ADMINISTRATION PLANS TO RAISE TAXES WITHOUT OFFERING ANY DETAILS PRESIDENT CLINTON PROMISED IN HIS BUDGET TO SAVE TAXPAYERS 161 BILLION OVER THE NEXT FIVE YEARS BY ALTERING THE TREASURY DEBT MIX THE TREASURY YESTERDAY WOULD GIVE NO ESTIMATES ON HOW MUCH IT EXPECTS TO SAVE AS A RESULT OF THE NEW MIX THE CHANGE IS MEANT TO ACHIEVE LONGTERM COST SAVINGS SAID DEBORAH DANKER ACTING ASSISTANT TREASURY SECRETARY THE FEDERAL GOVERNMENT EXPECTS TO SPEND 2015 BILLION ON INTEREST THIS YEAR 13 OF TOTAL OUTLAYS ACADEMIC ECONOMISTS HAVE ARGUED THAT RELYING LESS ON LONGTERM AND MORE ON SHORTTERM BORROWING WOULD ACCOMPLISH TWO GOALS IT WOULD SAVE ON INTEREST COSTS AND HELP REDUCE LONGTERM INTEREST RATES THEREBY STIMULATING INVESTMENT SHORTTERM INTEREST RATES TEND TO BE LOWER THAN LONGTERM RATES UNLESS SHORTTERM RATES WERE TO RISE FURTHER THAN ANYONE EXPECTS AND REMAIN AT SUCH HIGH LEVELS THE TREASURY WOULD SAVE MONEY OVER THE NEXT 30 YEARS THEY ARGUE HARVARD ECONOMIST BENJAMIN FRIEDMAN COAUTHOR OF A RECENT BOOK ENTITLED DOES DEBT MANAGEMENT MATTER ENDORSED THE NEW TREASURY POLICY SAYING THE GOVERNMENT NEEDS TO GET OUT OF THE CORPORATIONS' WAY IN THE LONGTERM BOND MARKET IF YOU COMPARE RECENT PATTERNS OF CORPORATE DEBT ISSUANCE TO WHAT USED TO HAPPEN YEARS AGO HE SAID YOU FIND THAT MUCH LESS OF THE CORPORATE DEBT STRUCTURE IS LONGTERM I THINK THE TREASURY HAS PREEMPTED A LARGE PORTION OF THE CAPACITY FOR LONGTERM DEBT BY SHIFTING BORROWING TO SHORTER MATURITIES HE SAID LONGTERM INTEREST RATES SHOULD FALL STIMULATING INVESTMENT BUT MS DANKER SAID THE TREASURY'S MOVE WASN'T INTENDED TO MANIPULATE LONGTERM INTEREST RATES SHE SAID THE DEPARTMENT COULDN'T FORECAST HOW THE MARKET WILL REACT TO IT ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE SAID THE TREASURY'S CHANGE WILL MOST LIKELY LEAD TO SOME MODEST REDUCTION IN INTEREST COSTS HE ADDED THEY ARE GOING ABOUT THIS IN A PRUDENT WAY IT DOESN'T SOUND LIKE ANYTHING PARTICULARLY RADICAL AFTER YEARS OF SHORTENING THE AVERAGE MATURITY OF ITS DEBT THE TREASURY REVERSED COURSE AT THE END OF 1975 AND BEGAN LENGTHENING THE MATURITY AT THE TIME THE AVERAGE MATURITY WAS ABOUT 2 1/2 YEARS AT THE END OF THIS YEAR'S FIRST QUARTER THE MATURITY OF THE DEBT WAS CLOSE TO SIX YEARS IN ADDITION TO THE ROUGHLY 4030 BILLION OF 30YEAR BONDS THE TREASURY LAST YEAR SOLD 4444 BILLION OF 10YEAR NOTES 2928 BILLION OF SEVENYEAR NOTES 12474 BILLION OF FIVEYEAR NOTES 23846 BILLION IN TWO AND THREEYEAR NOTES AND 1484 TRILLION IN BILLS WHICH HAVE MATURITIES OF 52 WEEKS OR LESS THE TREASURY SAID IT PLANS TO SELL 35 BILLION OF NOTES AND BONDS NEXT WEEK IN ITS HUGE QUARTERLY REFUNDING OPERATION WHICH WILL REPLACE MATURING GOVERNMENT DEBT AND RAISE ABOUT 1110 BILLION IN NEW CASH THE REFUNDING WILL COMPRISE 16 BILLION OF THREEYEAR NOTES DUE MAY 15 1996 TO BE SOLD TUESDAY IN MINIMUM DENOMINATIONS OF 5000 1075 BILLION OF 10YEAR NOTES DUE FEB 15 2003 TO BE AUCTIONED WEDNESDAY IN MINIMUM DENOMINATIONS OF 1000 AND 825 BILLION OF 30YEAR NOTES DUE FEB 15 2023 TO BE SOLD NEXT THURSDAY IN MINIMUM DENOMINATIONS OF 1000 SOME OF THE PROCEEDS WILL BE USED TO REFUND 2390 BILLION IN MATURING DEBT THE CUSIP NUMBERS ARE 912827K76 FOR THE THREEYEAR NOTES 912827J78 FOR THE 10YEAR NOTES AND 9128810EP9 FOR THE 30YEAR NOTES NONCOMPETITIVE TENDERS FOR THE NOTES AND BONDS MUST BE RECEIVED BY NOON EDT ON THE DAY OF THE AUCTION AT FEDERAL RESERVE BANKS OR BRANCHES THE TREASURY ALSO PLANS TO SELL 15 BILLION OF 129DAY CASHMANAGEMENT BILLS NEXT THURSDAY TO RAISE NEW CASH THE BILLS WHICH WILL BE AVAILABLE IN MINIMUM DENOMINATIONS OF 10000 WILL BE DATED MAY 17 AND WILL MATURE SEPT 23 1993 NONCOMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 11 AM EDT THE DAY OF THE AUCTION AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY NOON EDT THE SAME DAY WORRIED BY THE THREAT OF HIGHER TAXES INVESTORS SNAPPED UP LARGE AMOUNTS OF TAXFREE BONDS AGAIN YESTERDAY EVEN THE PRESENCE OF A LARGE SUPPLY OF NEW STATE AND LOCAL GOVERNMENT ISSUES DID LITTLE TO REDUCE THE APPETITE OF INVESTORS SEARCHING FOR A HAVEN FROM THE EXPECTED ROUND OF CLINTON ADMINISTRATION TAX INCREASES ABOUT 2 BILLION OF NEW ISSUES HIT THE MARKETS YESTERDAY ACCORDING TO DOW JONES CAPITAL MARKETS REPORT UNDERWRITERS SAID MANY ISSUES WERE GREETED WITH STRONG INVESTOR DEMAND IN THE SECONDARY MARKET ACTIVELY TRADED LONGTERM MUNICIPALS GAINED ABOUT 1/4 POINT MANY CORPORATE TREASURERS CONTINUED TO STAY OUT OF THE NEWISSUE MARKET YESTERDAY HEMMED IN BY WORRIES OF VOLATILITY AFTER THE TREASURY'S BORROWINGMIX ANNOUNCEMENT AND BEFORE TOMORROW'S EMPLOYMENT REPORT HOWEVER MORE THAN 750 MILLION OF CORPORATE PAPER WAS PRICED AMONG A HANDFUL OF UTILITIES AND ONE LEASING CONCERN INDUSTRIALS STAYED ON THE SIDELINES NEVERTHELESS RUMORS SWIRLED ABOUT POTENTIAL OFFERINGS BY A NUMBER OF COMPANIES IN COMING DAYS INCLUDING DOLE FOOD CO AND UAL CORP SECONDARY TRADING ENDED MIXED IN CHOPPY TRADING WITH SHORTERTERM ISSUES GIVING UP ABOUT 1/8 POINT AND LONGERTERM ISSUES GAINING ABOUT 1/8 POINT JUNK BOND PRICES GENERALLY ENDED FLAT TO UP 1/8 POINT AMONG SPECIFIC HIGHYIELD ISSUES MESA INC BONDS ROSE AS TRADERS SAID INVESTORS ARE BECOMING MORE COMFORTABLE WITH THE PAPER FOLLOWING AN EXCHANGE OFFER BY THE OIL AND GAS COMPANY LAST WEEK MESA'S 135 SUBORDINATED NOTES DUE 1999 CLOSED 1 3/4 POINTS HIGHER AT 98 3/4 AFTER TRADING AS HIGH AS 99 1/4 DURING THE SESSION MEANWHILE MESA'S 12 SUBORDINATED NOTES DUE IN 1996 GAINED TWO POINTS TO 94 PRICES OF MORTGAGE SECURITIES ENDED HIGHER IN THE PRIMARY MARKET A NEW 500 MILLION REAL ESTATE MORTGAGE INVESTMENT CONDUIT ISSUE WAS ANNOUNCED BY FEDERAL HOME LOAN MORTGAGE CORP AND TWO OUTSTANDING FREDDIE MAC REMICS WERE INCREASED BY A TOTAL OF 750 MILLION IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR MAY DELIVERY FINISHED 1/32 HIGHER AT 101 WHILE FREDDIE MAC GOLD 7 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR MAY DELIVERY BOTH FINISHED 5/32 HIGHER AT 101 10/32 AND 101 5/32 RESPECTIVELY DAVID WESSEL IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9305060145 930506 FINANCING BUSINESS PITTENCRIEFF COMMUNICATIONS INC PITTENCRIEFF COMMUNICATIONS INC DALLAS SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED INITIAL PUBLIC OFFERING OF 42 MILLION COMMON SHARES WITH AN ESTIMATED PRICE OF 11 TO 13 A SHARE THE COMPANY WHICH PROVIDES WIRELESS COMMUNICATIONS SERVICES SUCH AS PAGERS TWOWAY RADIOS AND TELEPHONE INTERCONNECT SERVICE SAID IT WILL USE THE MONEY TO REPAY DEBT AND FOR GENERAL CORPORATE PURPOSES SUCH AS WORKING CAPITAL ACQUISITIONS AND CAPITAL EXPENDITURES 9305060144 930506 FINANCING BUSINESS STANDARD PRODUCTS CO STANDARD PRODUCTS CO CLEVELAND SAID IT FILED A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE SALE OF AS MUCH AS 100 MILLION PRINCIPAL AMOUNT OF DEBT SECURITIES AND 30 MILLION TO 50 MILLION OF COMMON SHARES THE COMPANY SAID THE DEBT SECURITIES WOULD BE ISSUED FROM TIME TO TIME IN ONE OR MORE SERIES UNDER TERMS TO BE DETERMINED AT THE TIME OF SALE THE PRICE OF THE COMMON SHARES ALSO WOULD BE DETERMINED AT THE TIME OF THEIR SALE THE COMPANY SAID STANDARD PRODUCTS MAKES RUBBER AND PLASTIC PARTS FOR THE AUTOMOTIVE INDUSTRY RUBBERIZED TRACK FOR MILITARY VEHICLES AND PLASTIC AND MAGNETIC DOOR SEALS FOR HOME APPLIANCES 9305060143 930506 FINANCING BUSINESS TOM BROWN INC TOM BROWN INC MIDLAND TEXAS FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION RELATING TO THE PROPOSED SALE OF 52 MILLION COMMON SHARES THE COMPANY SAID IT WILL USE THE NET PROCEEDS OF THE OFFERING TO RETIRE LONGTERM BANK DEBT AND FOR GENERAL CORPORATE PURPOSES INCLUDING DEVELOPMENT DRILLING AND ACQUISITIONS OF THE SHARES TO BE OFFERED THREE MILLION WILL BE SOLD BY THE COMPANY AND 22 MILLION BY THE PRUDENTIAL INSURANCE CO OF AMERICA THE FILING ALSO INCLUDES AN ADDITIONAL 520000 SHARES TO COVER OVERALLOTMENTS TOM BROWN INC IS AN ENERGY COMPANY ENGAGED PRIMARILY IN DOMESTIC OIL AND GAS EXPLORATION DEVELOPMENT PRODUCTION AND SALES 9305060142 930506 INTERNATIONAL US DELEGATION URGES ASIAN BANK TO CUT LENDING BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL MANILA THE PHILIPPINES THE US DELEGATE TO THE ASIAN DEVELOPMENT BANK'S ANNUAL MEETING URGED THE BANK TO CUT LENDING TO ASIAN COUNTRIES RATHER THAN INCREASE IT AS MEMBERS HAVE PROPOSED IN A SPEECH JEFFREY SHAFER HEAD OF THE US DELEGATION POURED COLD WATER ON URGENT PLEAS FROM ADB PRESIDENT KIMIMASA TARUMIZU AND JAPANESE FINANCE MINISTER YOSHIRO HAYASHI THAT MEMBER COUNTRIES DOUBLE THE BANK'S AUTHORIZED SHARE CAPITAL TO 46 BILLION BY 1998 WITHOUT THE INCREASE THE BANK WOULD BE FORCED TO SCALE BACK LENDING SUBSTANTIALLY ADB EXECUTIVES SAY IN A SCATHING ATTACK ON THE BANK'S RAPID GROWTH MR SHAFER SAID A REVIEW OF THE SCALE OF LENDING IS NEEDED BEFORE DECIDING ON A CAPITAL INCREASE THE BANK NEED NOT AND IT CANNOT GO ON RAPIDLY INCREASING ITS LENDING YEAR BY YEAR SAID MR SHAFER WHO IS EXPECTED TO BE CONFIRMED THIS WEEK AS TREASURY ASSISTANT SECRETARY RESPONSIBLE FOR INTERNATIONAL AFFAIRS THE US OFFICIAL ALSO URGED THE BANK TO PAY MORE ATTENTION TO ENVIRONMENTAL PROTECTION IN A POLICY SHIFT THAT SOME ASIAN GOVERNMENT DELEGATES FEAR WILL TRIM LENDING TO THEIR PET INFRASTRUCTURE PROJECTS SUCH AS ROADS AND POWER PLANTS MR SHAFER REITERATED WASHINGTON'S DESIRE THAT ASIAN COUNTRIES OPEN THEIR FINANCIAL MARKETS TO FOREIGN COMPETITION BUT HE DIDN'T BEAT UP ON CHINA AND OTHER GOVERNMENTS FOR MANIPULATING THEIR CURRENCIES AND AMASSING HUGE TRADE SURPLUSES WITH THE US AS HIS PREDECESSOR DID LAST YEAR THE US ALSO CAST DOUBT ON THE NEED TO EXPAND BANK LENDING BY A PROJECTED 21 TO 48 BILLION THIS YEAR NOTING THAT THE BANK'S INTERNAL EVALUATION INDICATED THAT THE PAYOFF IN DEVELOPMENT TERMS FROM PROJECTS HAS SLIPPED SOMEWHAT MR SHAFER URGED THE ADB TO FOCUS MORE ON IMPROVING THE QUALITY OF THE LOAN PORTFOLIO AND LESS ON EXPANDING IT CRITICS CHARGE THAT AMERICAN INTERESTS IN SLOWING DOWN ADB'S GROWTH ARE SELFSERVING FACED WITH SERIOUS BUDGETARY CONSTRAINTS AND MORE PRESSING INTERNATIONAL ISSUES ELSEWHERE WASHINGTON FORESEES DIFFICULTIES PERSUADING CONGRESS TO EXPAND AID TO ASIA A REGION OF RELATIVE POLITICAL STABILITY AND EXTRAORDINARY ECONOMIC GROWTH THE CRITICS SAY MR HAYASHI OF JAPAN IN A NEWS BRIEFING PLEDGED FULL SUPPORT FOR THE ABD'S CAPITAL INCREASE BUT REFRAINED FROM CRITICIZING THE US STANCE IN AN ADDRESS TO DELEGATES HE LAMENTED THAT LEADERS OF MANY INDUSTRIALIZED COUNTRIES ARE SO PREOCCUPIED WITH STRIFE IN EUROPE AND AFRICA THAT I AM AFRAID THEIR INTEREST IN THE ASIAPACIFIC REGION MAY BE FLAGGING 9305060141 930506 MEDICINE PRESENCE OF COLONCANCER GENE IS FOUND RAISING HOPES FOR CURES IN MANY CASES BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL THE SEARCH FOR ALL HUMAN GENES HAS UNEARTHED ANOTHER SIGNIFICANT FIND EXPLAINING WHY MANY PEOPLE DEVELOP COLON CANCER ONE OF THE COMMONEST AND DEADLIEST CANCERS A SCIENTIFICALLY RENOWNED TEAM OF GENE HUNTERS QUIETLY SCOURING DNA OF DOZENS OF FAMILIES FROM AROUND THE WORLD FOR THE PAST FOUR YEARS SAY THEY HAVE LOCATED THE PRESENCE OF AN ASYET UNIDENTIFIED GENE WHEN INHERITED IN DEFECTIVE FORM THE GENE TRIGGERS A SERIES OF BIOLOGICAL EVENTS THAT LEAD TO COLON OR THE LESS COMMON RECTAL CANCER SCIENTISTS ARE PRAISING THE DISCOVERY AS A MAJOR ADVANCE SAYING THEY EXPECT THAT WITHIN A FEW YEARS IT WILL HELP PREVENT AND TREAT MANY CASES OF A CANCER THAT EACH YEAR KILLS ABOUT 57000 AMERICANS MOST SURPRISING THE TEAM'S SCIENTISTS SAY THEY BELIEVE THAT ABOUT ONE IN 200 PEOPLE CARRIES THE INBORN GENE DEFECT MAKING INHERITED COLON CANCER ONE OF THE MOST COMMON GENETIC DISEASES IF SOMEONE HAS A MUTANT FORM OF THIS GENE HE OR SHE WILL GET THIS CANCER SAYS BERT VOGELSTEIN A GENETICS RESEARCHER AT JOHNS HOPKINS UNIVERSITY IN BALTIMORE WHO HELPED IN THE DISCOVERY DR VOGELSTEIN SAYS 10 TO 15 OF ALL COLONCANCER CASES INVOLVE THE GENE IT'S REALLY A QUITE EXCITING DISCOVERY ESPECIALLY SINCE IT MAY SOON HELP PEOPLE IN FAMILIES WHERE THIS GENE IS BEING INHERITED SAYS FRANCIS COLLINS A GENETICS RESEARCHER WHO RECENTLY TOOK OVER AS HEAD OF THE HUMAN GENOME PROJECT THE FEDERALLY FUNDED EFFORT TO IDENTIFY ALL 100000 OR SO HUMAN GENES AS A RESULT OF THE PROJECT'S EFFORTS SCIENTISTS ARE FINDING NEW HUMAN GENES AT A RATE OF ABOUT ONE A DAY AND THEREBY UNCOVERING GENES INVOLVED IN A HOST OF COMMON AND RARE DISEASES RESEARCHERS AT JOHNS HOPKINS SAY THAT IN LESS THAN SIX MONTHS THEY WILL PRODUCE A SIMPLE BLOOD TEST THAT CAN PREDICT WITH 98 ACCURACY WHO WILL AND WON'T GET CANCER AMONG INDIVIDUALS WITH A STRONG FAMILY HISTORY OF COLON CANCER WHILE THE RESEARCHERS HAVEN'T ACTUALLY IDENTIFIED THE CULPRIT GENE THEY HAVE FOUND A BIT OF DNA SITUATED CLOSE TO THE GENE THAT CAN BE USED TO DETECT THE GENE'S PRESENCE ALTHOUGH ONLY IN HIGHRISK FAMILIES AT FIRST DR VOGELSTEIN SAYS HE EXPECTS THE GENE TO BE FOUND WITHIN TWO YEARS AT WHICH POINT ANYONE CAN BE TESTED TO DETERMINE WHETHER THEY HAVE INHERITED A RISK FOR COLON CANCER IN RECENT YEARS SIMILAR GENE BREAKTHROUGHS HAVE LED TO SIMPLE LAB TESTS USING JUST A FEW BLOOD CELLS THAT CAN PREDICT WHETHER A PERSON WILL DEVELOP SEVERAL RARE CANCERS AS WELL AS HUNTINGTON'S DISEASE CYSTIC FIBROSIS MUSCULAR DYSTROPHY AND EVEN CERTAIN TYPES OF HEART DISEASE AS YET HOWEVER FEW NEW TREATMENTS HAVE ARISEN FROM THE GENE DISCOVERIES MEANWHILE DOCTORS WHO TREAT THE MANY FAMILIES AT RISK OF COLON CANCER ARE ECSTATIC THE FINDING FINALLY PROVIDES SCIENTIFIC EVIDENCE FOR WHAT MANY OF THESE DOCTORS AND THEIR PATIENTS ALREADY BELIEVED SOMETHING INHERITED WAS TRIGGERING THE DISEASE WE'LL BE ABLE TO SINK OUR TEETH INTO A PROBLEM THAT WE HAVE BEEN FLAILING AT FOR YEARS SAYS PATRICK LYNCH A COLONCANCER SPECIALIST AT MD ANDERSON HOSPITAL IN HOUSTON WHO TREATS MANY PATIENTS FROM SUCH FAMILIES HE SAYS THE GENE TEST SHOULD HELP END UNNECESSARY ANXIETY FOR MANY YOUNG ADULTS IN THESE FAMILIES WHO FEAR THEY ARE AT RISK OF THE CANCER BUT DON'T CARRY THE GENE AND ALSO ALLOW FOR EARLY PREVENTIVE MEASURES FOR THOSE PEOPLE WHO DO CARRY THE GENE PRIOR TO THIS THE ONLY WAY PEOPLE KNEW THEY HAD INHERITED THE PROBLEM WAS WHEN THEY DEVELOPED THE CANCER DR LYNCH SAYS AND EVEN THEN WE DIDN'T HAVE DEFINITIVE EVIDENCE A GENE WAS CAUSING THE PROBLEM NOW WE DO THE DISCOVERY OF THE PRESENCE OF THE COLONCANCER GENE REPORTED IN THIS WEEK'S ISSUE OF THE JOURNAL SCIENCE IS THE LATEST IN A SERIES OF STUNNING CANCERGENE ADVANCES BY DR VOGELSTEIN AND HIS LAB THE 43YEAROLD SCIENTIST FIRST ARRIVED ON THE WORLD SCIENTIFIC STAGE ABOUT FIVE YEARS AGO WHEN HE SHOWED THAT COLON CANCER RESULTS WHEN A CERTAIN SET OF GENES WITHIN A SINGLE CELL SOMEHOW BECOME DAMAGED SINCE THEN DR VOGELSTEIN HAS SHOWN THAT THESE GENES CONTROL CELL GROWTH AND IF THEY BECOME DEFECTIVE CELLS NORMALLY UNDER CONTROL BECOME CANCEROUS OTHER RESEARCHERS HAVE FOUND THAT SIMILAR GENES CALLED TUMOR SUPPRESSORS ARE INVOLVED IN ALMOST ALL CANCERS FINDINGS THAT HAVE REVOLUTIONIZED THE DIRECTION OF BASIC CANCER RESEARCH IN SOME INSTANCES SCIENTISTS HAVE FOUND THESE TUMORSUPPRESSOR GENES CAUSE DISEASE IF INHERITED IN DEFECTIVE FORM IN OTHER CASES THE GENES SEEM TO GET DAMAGED DURING A CELL'S LIFE WHILE DOCTORS HAVE LONG SUSPECTED THAT COLON CANCER RUNS IN FAMILIES THEY HAVE BEEN BAFFLED AS TO WHETHER THIS FAMILIAL RISK WAS CAUSED BY A SHARED GENE OR A SHARED ENVIRONMENT SUCH AS DIET BEGINNING IN 1989 DR VOGELSTEIN JOINED WITH GENETICIST ALBERT DE LA CHAPELLE OF THE UNIVERSITY OF HELSINKI IN FINLAND TO SEE WHETHER ONE OF THE TUMOR SUPPRESSORS CAUSED INHERITED CANCER COLON THE RESEARCH TEAM BEGAN SIFTING THROUGH GENETIC MATERIAL EXTRACTED FROM THE BLOOD OF PEOPLE IN THE HIGHRISK FAMILIES BUT AFTER A LENGTHY SEARCH THEY FAILED TO FIND EVIDENCE THAT TUMOR SUPPRESSORS WERE BEING INHERITED IN MUTANT FORM THEN THEY BEGAN TESTING HUNDREDS OF BITS OF GENETIC MATERIAL TO SEE WHETHER ANY DISTINCT STRETCH OF DNA WAS BEING CONSISTENTLY INHERITED BY RELATIVES WITH THE DISEASE IN TWO UNUSUALLY LARGE HIGHRISK FAMILIES THAT EFFORT ALSO FAILED WE WERE FRUSTRATED AND WORN OUT AND REALLY READY TO GIVE UP A FEW YEARS AGO DR VOGELSTEIN SAYS THEN A 27YEAROLD MAN IN ONE OF THE FAMILIES UNDER STUDY GOT COLON CANCER THAT'S VERY YOUNG TO GET THE DISEASE DR VOGELSTEIN SAYS IT SUGGESTED SOMETHING GENETIC WAS HAPPENING AND WE WENT BACK TO WORK AGAIN FINALLY LATE LAST YEAR AFTER THE RESEARCHERS HAD TESTED 345 SEPARATE BITS OF GENETIC MATERIAL THE TEAM FOUND THAT ONE PARTICULAR STRETCH OF DNA WAS INHERITED BY PEOPLE WITH THE DISEASE BUT NOT BY HEALTHY RELATIVES SINCE THEN THE RESEARCHERS HAVE FOUND THE SAME GENETIC VARIANT IN PRACTICALLY EVERY PERSON WITH THE CANCER IN DOZENS OF FAMILIES WHERE THE CANCER IS COMMON POWERFUL EVIDENCE THAT THEY HAVE PINPOINTED A GENE NOW THAT THE LOCATION OF THE GENE IS KNOWN WE ARE VERY OPTIMISTIC WE'LL SOON FIND THE GENE ITSELF SAYS DR DE LA CHAPELLE NEW RESEARCH HOWEVER ALREADY SUGGESTS THAT THE NEWLY UNCOVERED GENE SOMEHOW REGULATES THE PRODUCTION OF IMPORTANT SEGMENTS OF MANY OTHER GENES THE SCIENTISTS SPECULATE THAT WHEN DEFECTIVE THE NEWLY LOCATED GENE OVER TIME CAN DAMAGE TUMORSUPPRESSOR GENES CAUSING CELLS TO GROW OUT OF CONTROL THE NEW GENE IS EXPECTED TO PRODUCE DIAGNOSTIC TESTS TO HELP IDENTIFY PEOPLE AT RISK WHO THEN WILL BE MONITORED CLOSELY TO CATCH A CANCER AT ITS EARLIEST STAGE WHEN IT IS MOST TREATABLE BY SURGERY RADIATION OR CHEMOTHERAPY DR VOGELSTEIN BELIEVES THE DISCOVERY MAY ALSO SUGGEST NEW TREATMENTS A FELLOW JOHNS HOPKINS RESEARCHER ALSO IS REPORTING THIS WEEK THAT AN OLD ARTHRITIS DRUG CALLED CLINORIL AND SOLD BY MERCK & CO APPEARS EFFECTIVE IN BLOCKING THE FORMATION OF CERTAIN COLONCANCER TUMORS THE SCIENTISTS HOPE TO SOON TEST WHETHER THE DRUG CAN PREVENT CANCER IN GENE CARRIERS 9305060140 930506 INTERNATIONAL WITH GLOBAL RESTRUCTURING IN TROUBLE GPA MULLS DEBT PAYMENT MORATORIUM BY STEVEN LIPIN AND BRIAN COLEMAN STAFF REPORTERS OF THE WALL STREET JOURNAL SCRAMBLING TO KEEP ITSELF AFLOAT GPA GROUP PLC IS CONSIDERING A MORATORIUM ON ALL DEBT PAYMENTS A MOVE ITS BANKERS WOULD LIKELY OPPOSE THE MORATORIUM WAS DISCUSSED AT A TUESDAY BOARD MEETING CALLED TO WEIGH VARIOUS OPTIONS FOR AVERTING A POSSIBLE BANKRUPTCY FILING WITH ITS GLOBAL RESTRUCTURING IN DIRE TROUBLE AND LARGE BOND PAYMENTS COMING DUE THE GIANT AIRCRAFT LESSOR HAS NO MORE THAN 10 DAYS TO COMPLETE ITS PLAN TO REGAIN FINANCIAL FOOTING THE OPTIONS THE BOARD DISCUSSED INCLUDE A SUSPENSION OF INTEREST AND PRINCIPAL PAYMENTS ON GPA'S 55 BILLION IN TOTAL BANK AND BOND DEBT AN EXCHANGE OF BOND DEBT FOR EQUITY OR A DEFERRAL OF BOND PAYMENTS THE COMPANY'S BANK GROUP HOWEVER WOULD BE UNLIKELY TO STAND FOR SUSPENSION OF PAYMENTS ON ABOUT 35 BILLION IN LOANS IF THE COMPANY NEVERTHELESS MOVED TO SUSPEND PAYMENTS IT WOULD BE DIFFICULT TO KEEP ALL LENDERS ON BOARD SOME BANKS WOULD CONSIDER FORCING THE COMPANY INTO BANKRUPTCY PROTECTION ONE OF THE COMPANY'S LENDERS SAID GPA HAS RETAINED DONALDSON LUFKIN & JENRETTE INC A US SECURITIES CONCERN SPECIALIZING IN BOND WORKOUTS TO ADVISE THE COMPANY ON RESTRUCTURING ITS UNSECURED DEBT THAT COULD INCLUDE AN EXCHANGE OF BONDS FOR A STAKE IN THE COMPANY OR A DEFERRAL OF PAYMENTS IN EXCHANGE FOR SOME FORM OF REMUNERATION DONALDSON LUFKIN IS A UNIT OF EQUITABLE COS A SPOKESMAN FOR THE SHANNON IRELAND AIRCRAFT LEASING COMPANY SAID THAT AT ITS LENGTHY MEETING THE BOARD CONSIDERED THE WHOLE OF THE RESTRUCTURING PROGRAM BUT HE STRESSED THAT NO DECISION HAD BEEN REACHED AND DECLINED FURTHER COMMENT GPA'S LOAN WAIVERS ARE SET TO EXPIRE TOMORROW THE COMPANY'S CREDITORS ARE BEING ASKED TO GRANT ANOTHER WAIVER UNTIL MAY 17 WHEN OVER 50 MILLION IN BOND PAYMENTS ARE SCHEDULED TO BE MADE BUT EVEN GETTING ANOTHER WAIVER IS BECOMING MORE DIFFICULT GIVEN THE COMPANY'S WOES WHILE THE COMPANY EXPECTS TO RECEIVE THE WAIVER IT HAS YET TO OBTAIN IT LENDERS SAY SO FAR GPA HAS BEEN UNSUCCESSFUL IN ITS ATTEMPTS TO RAISE 200 MILLION IN CASH FOR EQUITY TO STRENGTHEN THE COMPANY'S FINANCIAL FOOTING CONCESSIONS FROM THE COMPANY'S UNSECURED LENDERS WOULD HELP EASE GPA'S FINANCIAL BURDENS ONCE EQUITY IS RAISED LENDERS WOULD LIKELY DEFER 1 BILLION IN PRINCIPAL PAYMENTS AND LOOSEN FINANCIAL COVENANTS GPA IS STILL IN DISCUSSIONS WITH GENERAL ELECTRIC CO ABOUT A POSSIBLE EQUITY INFUSION PEOPLE FAMILIAR WITH THE TALKS SAY BUT THE FAIRFIELD CONN COMPANY HAS MADE IT CLEAR THAT IT WON'T ASSUME GPA'S BIG DEBT LOAD GE DECLINED COMMENT GPA HAS MORE THAN 2 BILLION IN UNSECURED BONDS OUTSTANDING MOST OF WHICH WERE ISSUED IN THE US IT IS UNCERTAIN WHICH SECURITIES GPA WOULD SEEK TO RESTRUCTURE THE POSSIBLE SALE OF A CONTROLLING STAKE TO A POTENTIAL PARENT COULD SOLVE MUCH OF GPA'S PROBLEMS SAID OFFICIALS CLOSE TO THE COMPANY 9305060139 930506 LEISURE & ARTS TONY KUSHNER'S GAY FANTASIA ARRIVES ON BROADWAY BY EDWIN WILSON NEW YORK ANGELS IN AMERICA THE MOST TALKED ABOUT PLAY IN MANY YEARS HAS FINALLY COME TO BROADWAY THE NEW WORK BY TONY KUSHNER WAS PRODUCED LAST SEASON AT THE ROYAL NATIONAL THEATER IN LONDON WHEN THAT PRODUCTION RECEIVED AN ECSTATIC REVIEW FROM A NEW YORK CRITIC THE HYPE WAS ON IT WAS GIVEN ADDED IMPETUS AT LAST YEAR'S TONY AWARDS WHEN SIR IAN MCKELLEN PROCLAIMED TO A NATIONAL TELEVISION AUDIENCE THAT ANGELS IN AMERICA WOULD WIN THIS YEAR'S TONY A PRODUCTION AT THE MARK TAPER FORUM EARLIER THIS SEASON SENT THE NEW YORK CRITICS SCURRYING TO LOS ANGELES AND THAT IN TURN WAS FOLLOWED BY A BIDDING WAR AMONG BROADWAY THEATER OWNERS UNPRECEDENTED FOR A NONMUSICAL THE ANNOUNCEMENT ON THE DAY OF ITS FIRST PREVIEW THAT THE PLAY HAD WON THE PULITZER PRIZE CAPPED OFF THE WHIRLWIND OF PUBLICITY FOR THOSE NOT FAMILIAR WITH THE PLAY IT IS A SEVENHOUR EPIC IN TWO PARTS MILLENNIUM APPROACHES AND PERESTROIKA WHEN BOTH PARTS WERE PRESENTED AT THE MARK TAPER THE CONSENSUS WAS THAT THE SECOND PART WAS NOT READY YET AND SO WHAT OPENED EARLIER THIS WEEK AT THE WALTER KERR THEATRE IS PART ONE WHICH BY ITSELF IS 3 1/2 HOURS LONG THE SUBTITLE OF ANGELS IN AMERICA IS A GAY FANTASIA ON NATIONAL THEMES THE GAY FANTASIA PART IS CERTAINLY ACCURATE THE PLAY CONCERNS A PAIR OF HOMOSEXUAL LOVERS LOUIS JOE MANTELLO AND PRIOR STEPHEN SPINELLA AND A YOUNG MORMON COUPLE LIVING IN BROOKLYN JOE DAVID MARSHALL GRANT A LAW CLERK FOR A JUDGE AND HIS WIFE HARPER MARCIA GAY HARDEN JOE A DEVOUT MORMON IS FIGHTING AGAINST HIS STRONG HOMOSEXUAL TENDENCIES WHILE HIS WIFE UNHAPPY BOTH WITH HERSELF AND WITH JOE IS ADDICTED TO TRANQUILIZERS THE OTHER KEY CHARACTER IS ROY COHN RON LEIBMAN A FICTIONAL DEPICTION OF THE WHEELERDEALER LAWYER WHO IS INTRODUCED INTO THE PLAY AS JOE'S MENTOR PRIOR HAS AIDS AND COHN A SECRET HOMOSEXUAL ALSO HAS AIDS BUT REFUSES TO ACKNOWLEDGE THE FACT AS THE ACTION UNFOLDS SEVERAL THEMES EMERGE AMONG THEM DENIAL OF THE TRUTH ABOUT ONESELF AND THE ROOTLESSNESS OF MOST AMERICANS MR KUSHNER IS UNQUESTIONABLY A TALENTED WRITER ONE OF HIS STRONG POINTS IS HUMOR EVIDENT IN BOTH HIS ONELINERS AND HIS SATIRICAL PORTRAITS A GOOD EXAMPLE OF THE LATTER COMES IN THE SCENE IN WHICH LOUIS EXPLAINS TO BELIZE JEFFREY WRIGHT A BLACK DRAG QUEEN THAT IT IS NOT RACE THAT DIVIDES AMERICANS BUT POLITICS AS HIS LISTENER GROWS INCREASINGLY INCREDULOUS LOUIS'S CONVOLUTED SELFCONTRADICTORY ARGUMENT BECOMES A MASTERFUL PARODY OF A LIBERAL INTELLECTUAL HARANGUE THE MOST TELLING PORTRAYAL IS OF THE ROY COHN CHARACTER AN OPENING SCENE HAS COHN ON THE TELEPHONE ORCHESTRATING CALLERS ANXIOUS CLIENTS JUDGES AND WASHINGTON CONTACTS BY PUSHING HOLD BUTTONS WITH THE FINESSE OF A SYMPHONY CONDUCTOR IN A LATER SCENE WITH HIS DOCTOR KATHLEEN CHALFANT COHN INSISTS THAT HE CANNOT HAVE AIDS BECAUSE HE IS NOT A HOMOSEXUAL CERTAINLY HE SLEEPS WITH MEN BUT THAT DOES NOT MAKE HIM A HOMOSEXUAL BECAUSE BY DEFINITION HOMOSEXUALS DO NOT HAVE CLOUT AND HE COHN HAS MORE CLOUT THAN ANY MAN IN AMERICA IT IS A SAVAGE DEVASTATING SCENE EXPOSING BOTH COHN'S ARROGANCE AND HIS HYPOCRISY MR KUSHNER'S OTHER GREAT TALENT IS FOR IMAGINATIVE CHARACTERS AND SITUATIONS EXEMPLIFIED BY THE BIZARRE HALLUCINATIONS OF PRIOR AND HARPER WHEN PRIOR IS DYING HE IS VISITED BY FANTASTICAL INCARNATIONS OF HIS ANCESTORS A RUSTIC 13THCENTURY BRITISH SQUIRE DAVID MARSHALL GRANT AND AN ELEGANT 18THCENTURY LONDON DANDY MR LEIBMAN IT IS WHEN WE COME TO THE SECOND PART OF MR KUSHNER'S SUBTITLE HIS CLAIM THAT THE PLAY DEALS WITH NATIONAL THEMES THAT THE PLAY HAS PROBLEMS ANGELS IN AMERICA PRESENTS THE CLOSED UNIVERSE OF A HOMOSEXUAL WORLD THERE IS HARDLY A STRAIGHT PERSON IN IT WHO IS NORMAL JOE'S WIFE IS A HOPELESS NEUROTIC AND HIS MOTHER MS CHALFANT IS A WOMAN WEARING BLINDERS SHE REFUSES TO ACKNOWLEDGE JOE'S SEXUAL ORIENTATION SEVERAL MEN IN THE PLAY FOLLOWING MR KUSHNER'S SUGGESTION IN THE SCRIPT ARE PLAYED BY WOMEN WHEN COHN'S DOCTOR OR HIS LAWYER FRIEND FROM WASHINGTON ARE CLEARLY WOMEN IN DRAG IT BECOMES AN IMPLICIT COMMENT ON STRAIGHT MEN IN ITS OWN WAY ANGELS IN AMERICA IS A WISHFULFILLMENT PLAY COHN THE MAN WHO DENIES HIS HOMOSEXUALITY GETS HIS COMEUPPANCE JOE COMES OUT OF THE CLOSET AND EMBRACES LOUIS AS HIS LOVER IN A CLOSING TABLEAU AND PRIOR THE PERSON WHO SUFFERS THE MOST RECEIVES AN APOCALYPTIC BENEDICTION WHEN AN ANGEL WITH SPREADING WHITE WINGS ELLEN MCLAUGHLIN BREAKS THROUGH THE CEILING IN THE FINAL MOMENT OF THE PLAY AND HOVERS OVER HIS BED AS FOR POLITICS THE PLAY IS SET IN THE MID1980S IN THE REAGAN ERA COMMENTS FROM VARIOUS CHARACTERS ATTACKING MR REAGAN ED MEESE AND JEANE KIRKPATRICK NOT SURPRISINGLY ARE GREETED WARMLY BY THE LIBERAL THEATER AUDIENCE THE PERSON WHO LAUNCHES MOST OF THE ATTACKS IS LOUIS THOUGH WELLWRITTEN BY MR KUSHNER AND EXPERTLY PLAYED BY MR MANTELLO LOUIS ULTIMATELY IS A COWARD UNABLE TO FACE THE RAVAGES OF DISEASE IN PRIOR HE DESERTS THE MAN HE CLAIMS TO LOVE IN HIS GREATEST HOUR OF NEED MOVING OUT OF THEIR APARTMENT AND REFUSING TO VISIT PRIOR IN THE HOSPITAL THERE IS A GREAT DEAL WRONG WITH AMERICA BUT TO HAVE A CHARACTER LIKE LOUIS ACT AS OUR NATIONAL CONSCIENCE SEEMS IRONIC TO SAY THE LEAST IN DIRECTING THE PLAY GEORGE C WOLFE GETS OFF TO A SLOW START WITH LITTLE OF THE KINETIC PUNCH HE BROUGHT TO HIS DIRECTION OF THE MUSICAL JELLY'S LAST JAM THE SCENIC BACKGROUND IN ANGELS IN AMERICA IS A SERIES OF DRAB NEUTRAL PANELS TO INDICATE A CHANGE OF SCENE SINGLE ITEMS OF FURNITURE A DESK A SOFA A PARK BENCH MOVE LABORIOUSLY ON AND OFF STAGE IN THE EARLY SECTIONS PARTICULARLY THESE SHIFTS INTERRUPT THE FLOW OF THE PLAY EACH TIME IT GAINS MOMENTUM FORTUNATELY THE PACE PICKS UP LATER IN A SERIES OF RIVETING ENCOUNTERS A PRIME EXAMPLE IS A SCENE IN WHICH TWO CONFRONTATIONS TAKE PLACE SIMULTANEOUSLY PRIOR'S DENUNCIATION OF LOUIS FOR BETRAYING HIM AND HARPER'S ATTACK ON JOE FOR BETRAYING HER IN TERMS OF PURE THEATER MR KUSHNER HAS MUCH TO OFFER AS A PROPHET FOR THE APPROACHING MILLENNIUM HOWEVER HE SHOWS US A DEEPLY FELT BUT DEFINITELY LIMITED VISION 9305060136 930506 MEDICAL LUXURY HOSPITAL BEDS GO HIGHTECH AND SOME COST AS MUCH AS A CAR DOMINANT MAKER PROMOTING FEATURES AS COST SAVERS ADDS MORE AND LIFTS PRICE VOICE SENSORS AND 500 COLORS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL BATESVILLE IND TO UNDERSTAND JUST ONE REASON WHY MEDICAL COSTS HAVE SOARED 90 IN THE PAST 10 YEARS CONSIDER CAMERON J WELTON'S RECENT BUSINESS TRIP TO THIS SOUTHWESTERN INDIANA TOWN MR WELTON GOT THE KIND OF PAMPERING USUALLY OFFERED ONLY TO HIGHROLLING CASINO PATRONS A PRIVATE CESSNA JET PICKED HIM UP AT HIS HOMETOWN AIRPORT IN MEMPHIS TENN AND WHISKED HIM FREE OF CHARGE TO BATESVILLE A COURTESY VAN TOOK HIM THE LAST FEW MILES TO HIS DESTINATION THAT NIGHT HIS HOSTS ARRANGED A COMPLIMENTARY STAY AT THEIR FARM LODGE MR WELTON'S HOSTS HAD GOOD REASON TO WOO HIM THEIR COMPANY THE HILLROM UNIT OF HILLENBRAND INDUSTRIES INC IS THE LARGEST US MAKER OF HOSPITAL BEDS MR WELTON IS A HOSPITAL EXECUTIVE BY THE TIME MR WELTON DEPARTED HILLROM'S SALESMEN FELT CONFIDENT THEY HAD WON AT LEAST A 50000 ORDER FOR MATERNITY BEDS AMPLY JUSTIFYING THE FREE HOSPITALITY FILLING THAT ORDER WON'T TAKE HILLROM VERY LONG THOUGH THE 50000 WILL PAY FOR JUST SIX MATERNITY BEDS AND IF MR WELTON HADN'T TURNED DOWN SOME COSTLY EXTRAS THAT HILLROM WAS PUSHING THE HOSPITAL THAT HE RUNS METHODIST HOSPITAL SOUTH COULD HAVE PAID NEARLY 60000 IN THE MEDICALEQUIPMENT BUSINESS ALMOST EVERYTHING FROM HYPODERMIC NEEDLES TO COMPUTERIZED IMAGING MACHINES IS THE SUBJECT OF HIGHPOWERED MARKETING RAPID TECHNOLOGICAL BREAKTHROUGHS AND EQUALLY RAPID PRICE INCREASES EVEN SOMETHING AS BASIC AS A HOSPITAL BED NO LONGER IS SIMPLE IT HAS BECOME A HIGHTECHNOLOGY PLATFORM FULL OF ELECTRONIC CIRCUITRY SENSORS AND PATENTED FEATURES DESIGNED TO HELP PATIENT TREATMENT AND COMFORT IT CAN COST AS MUCH AS A CAR UNTIL PRESIDENT CLINTON BEGAN CAMPAIGNING FOR A HEALTHCARE OVERHAUL MAKERS OF MEDICAL EQUIPMENT WERE BASKING IN BOOM TIMES SPENDING ON MEDICAL SUPPLIES AND DEVICES HAS JUMPED 49 IN THE PAST FOUR YEARS TO 767 BILLION LAST YEAR VALUE LINE INC ESTIMATES STOCK PRICES OF MAJOR EQUIPMENT MAKERS HAVE DONE EVEN BETTER HILLENBRAND'S SHARES FOR EXAMPLE HAVE MORE THAN DOUBLED SINCE EARLY 1989 THE CURRENT ATTACKS ON HEALTHCARE COSTS THREATEN TO DISRUPT THE EQUIPMENT MAKERS' LONG RUN OF PROSPERITY THERE'S PLENTY OF INNOVATION AVAILABLE OBSERVES DANIEL MARINO A PURCHASING EXECUTIVE AT AMERICAN MEDICAL INTERNATIONAL INC A LARGE HOSPITAL CHAIN THE QUESTION IS HOW MUCH CAN WE AFFORD A CLOSE LOOK AT HILLROM SHOWS JUST HOW LUCRATIVE THE MEDICALEQUIPMENT BUSINESS CAN BE HILLENBRAND DOESN'T DISCLOSE FINANCIAL DATA ON HILLROM BUT ANALYSTS ESTIMATE THAT THE SUBSIDIARY GENERATES ABOUT 360 MILLION A YEAR IN SALES AND AT LEAST 80 MILLION IN OPERATING PROFIT THAT'S ABOUT 40 OF OVERALL OPERATING PROFIT FOR HILLENBRAND A WELLINTEGRATED CONGLOMERATE BESIDES HOSPITAL BEDS AND MEDICAL PUMPS IT MAKES COFFINS WHY IS HILLROM SO PROFITABLE COMPANY OFFICIALS BRISTLE AT ANY SUGGESTION THAT THEY OVERCHARGE FOR OVERENGINEERED BEDS AND RELY ON MARKETING GIMMICKS TO WIN SALES INSTEAD THEY SAY HILLROM THRIVES BECAUSE IT MAKES GOOD PRODUCTS WHEN PEOPLE SAY 10000 FOR A BED' YOU THINK OH MY GOD THAT'S A LOT' ACKNOWLEDGES W AUGUST HILLENBRAND A THIRDGENERATION MEMBER OF THE FOUNDING FAMILY AND THE COMPANY'S CHIEF EXECUTIVE BUT WHEN YOU THINK ABOUT ALL THE MONEY THAT YOU SAVE WITH SUCH A BED IT'S A COMPLETELY DIFFERENT STORY WITH PASSION IN HIS VOICE HE EXPLAINS HOW THE COMPANY'S TOPOFTHELINE BEDS HELP PARALYZED OR INCONTINENT PATIENTS AND THEIR NURSES MR HILLENBRAND DOESN'T MAKE ANY EXCUSES EITHER FOR ALL THE HOSPITALITY TO HOSPITAL MANAGERS LISTENING TO CUSTOMERS IS THE KEY TO OUR SUCCESS HE SAYS BY FLYING CUSTOMERS INTO BATESVILLE HE SAYS THE COMPANY LEARNS IN DETAIL WHAT THEY WANT AND HOW TO DELIVER IT TO THEM THESE VISITS ARE ALL BUSINESS HE SAYS IN ITS NICHE HILLROM IS SO DOMINANT THAT IT WIELDS ENORMOUS POWER TO SET PRICES AND INDUSTRY STANDARDS ACCORDING TO ESTIMATES BY IN VIVO A TRADE MAGAZINE HILLROM ACCOUNTS FOR 95 OF ALL PATIENTROOM BEDS SOLD IN THE US 80 OF ALL CRITICALCARE BEDS AND 85 OF ALL HOSPITAL HEADWALL SYSTEMS THE CONTROL PANELS THAT HOOK UP OXYGEN MONITORING EQUIPMENT AND OTHER SUPPLIES TO A PATIENT'S BEDSIDE HILLROM'S BEDS START WITH ITS 3500 CENTRA AND QUICKLY ASCEND TO COSTLIER MORESOPHISTICATED MODELS IN RECENT YEARS ITS SALES FORCE HAS BLITZED HOSPITALS WITH WARNINGS ABOUT COSTLY ILLNESSES SUCH AS BED SORES OR OTHER SKIN BREAKDOWNS THAT MIGHT OCCUR WITH THE WRONG BED THE USUAL SOLUTION A PRICIER HILLROM BED NOT ALL POTENTIAL CUSTOMERS YIELD TO SUCH ENTREATIES PURCHASING MANAGERS AT HOSPITAL CORP OF AMERICA AND HARLEM HOSPITAL IN NEW YORK SCOFF AT HILLROM'S CONTENTION THAT NEW BEDS CAN SAVE MONEY IN THE LONG RUN WE WOULDN'T BUY ALL THAT STUFF SAYS CARL BERMENT DIRECTOR OF MATERIALS MANAGEMENT AT HARLEM HOSPITAL THEIR PRODUCTS ARE VERY GOOD BUT A LOT OF THE ACCESSORIES JUST AREN'T NECESSARY FOR THE REGULAR MED/SURG BED MANY HOSPITALS HOWEVER FIND IT HARD TO SAY NO FASTCHANGING TECHNOLOGY HAS SET OFF A MEDICAL ARMS RACE AND MANY FEEL PRESSURE TO BUY NEW EQUIPMENT TO KEEP PACE WITH RIVAL HOSPITALS EVEN IF PRICES ARE STEEP FOR EXAMPLE HILLROM'S NEWEST BED FOR PATIENT WARDS THE ADVANCE 2000 WAS LAUNCHED IN 1990 AND NOW CARRIES A 7200 LIST PRICE YET WHEN HILLROM MARKETS THE BED IT URGES HOSPITAL OFFICIALS TO THINK OF THE ADVANCE 2000 AS A COST SAVER HOSPITALS SPENT NEARLY 1 BILLION LAST YEAR TREATING SKIN BREAKDOWNS SAYS RON HALLAM HILLROM'S VICE PRESIDENT FOR MARKETING WITH THE ADVANCE 2000 HE ASSERTS PATIENTS' CHANCES OF SUFFERING SUCH PROBLEMS DROP SIGNIFICANTLY BECAUSE THE NEW BED HAS A TWOPLY AIR MATTRESS THAT AUTOMATICALLY ADJUSTS PRESSURE LEVELS TO MATCH A PATIENT'S CONTOURS WHETHER A 7200 BED IS THE MOST ECONOMICAL WAY TO PREVENT BED SORES IS OPEN TO DEBATE AT BARNES HOSPITAL IN ST LOUIS RESEARCHERS WHO HAVE TESTED FIVE DIFFERENT SLEEP SURFACES ON 680 PATIENTS SAY THE ADVANCE 2000 SCORES BEST OTHER HOSPITALS HOWEVER SAY THEY CAN PREVENT MOST SKIN BREAKDOWNS WITH SPECIAL MATTRESSES COST 190 OR DISPOSABLE SOFTFOAM OVERLAYS COST 6 HILLROM IS TRYING TO SELL AN EXPENSIVE NEW BED SYSTEM SAYS NANCY BERGSTROM A BEDSORE EXPERT AND PROFESSOR OF NURSING AT THE UNIVERSITY OF NEBRASKA IT HAS A LOT OF INTUITIVE APPEAL BUT UNTIL WE SEE SOME RESEARCH WE HAVE TO BE A LITTLE BIT CAREFUL ABOUT SPENDING OUR HOSPITAL DOLLARS THIS WAY BOWING TO SUCH COST CONCERNS HILLROM IS SOFTENING ONE OF ITS LONGTIME MARKETING PRINCIPLES THAT CUSTOMERS MUST BUY AN ENTIRE NEW BED IF THEY WANT HILLROM'S LATEST FEATURES THE COMPANY HAS BEGUN SELLING THE NEW SLEEP SURFACE ON THE ADVANCE 2000 AS A 2000 MATTRESS THAT CAN BE PLACED ON AN EXISTING BED FRAME RATHER THAN AS PART OF A NEW 7200 BED STILL HILLROM IS VIGOROUSLY PROMOTING THE ADVANCE 2000 AS ITS BEST ALLROUND PATIENT BED MS BERGSTROM'S CONCERNS ARE PRETTY TYPICAL FOR A FIRST REACTION TO THE ADVANCE 2000 SAYS JOSEPH SWENSON HILLROM'S VICE PRESIDENT FOR OPERATIONS BUT MR SWENSON ADDS I'M CONFIDENT SHE WILL BE CONVINCED OF OUR RESULTS WHEN SHE SEES OUR CLINICAL STUDIES PLENTY OF HOSPITALS ARE WILLING TO SEE THINGS HILLROM'S WAY ONE RECENT BUYER IS SOUTHERN OHIO MEDICAL CENTER IN PORTSMOUTH OHIO WHICH SENT SEVERAL OF ITS ADMINISTRATORS ON AN EXPENSESPAID TRIP TO TEST THE BEDS IN BATESVILLE SAYS ONE OF THOSE VISITORS CLAUDIA BURCHETT THE SLEEP SURFACE IS AMAZING I REALLY THINK IT'S THE WAY TO GO ANOTHER BUYER THE ORLANDO FLA REGIONAL MEDICAL CENTER WENT ON TO TOUT ITS PURCHASE OF THE NEW BEDS LAST SUMMER IN A NEWS RELEASE MEDICAL CENTER ENHANCES PATIENT CARE WITH REVOLUTIONARY NEW BEDS THE HEADLINE READ FOR ITS 90 NEW HILLROM BEDS THE ORLANDO FACILITY SPENT MORE THAN 500000 SUCH COSTS SAYS JAMES MELIA ITS PURCHASING MANAGER ARE SOMETHING HE HAS LEARNED TO LIVE WITH AS HE PUTS IT WHENEVER THE WORD HOSPITAL APPEARS ON SOMETHING THE COST JUST SKYROCKETS MOREOVER HILLROM OFFERS OPTIONAL FEATURES ON ALL ITS BEDS MEDICAL EQUIPMENT MUCH LIKE A CAR CARRIES A BASE PRICE THAT CAN SOAR BY SEVERAL THOUSAND DOLLARS ONCE CUSTOMERS TICK OFF ALL THE OPTIONS THEY WANT A PRIME EXAMPLE HILLROM'S ENHANCEMATE BED A 7700 UPGRADE TO THE ADVANCE 2000 ON THE ENHANCEMATE A VOICEACTIVATED SENSOR ENABLES PARAPLEGICS TO ADJUST ITS SETTINGS WITHOUT A NURSE'S HELP PATIENTS NEED ONLY UTTER COMMANDS SUCH AS RAISE BED OR TURN ON TV INTO A SENSOR DANGLING OVER THEIR HEAD THE ENHANCEMATE HAS ITS FANS INCLUDING JEFF COLSON A JOCKEY WHO WAS PARALYZED IN A FALL FROM A HORSE AND NOW APPEARS PRAISING THE BED IN A HILLROM PROMOTIONAL VIDEO BUT ITS OVERALL COST OF MORE THAN 14000 IS A TOUGH SELL EVEN FOR HILLROM WHICH HAS SOLD FEWER THAN 100 SINCE INTRODUCING THEM LAST YEAR HILLROM HAS FARED MUCH BETTER WITH A SIMPLER OPTION THE INBED SCALE EVEN THOUGH IT ADDS ABOUT 1500 TO A BED'S COST THE SCALE IS PROMOTED AS A COST SAVER TOO IT ENABLES NURSES TO WEIGH BEDRIDDEN PATIENTS MUCH FASTER THAN THE TRADITIONAL ALTERNATIVE A SLING SCALE WRAPPED AROUND A PATIENT THAT TIME SAVING SHOULD REDUCE NURSING EXPENSE HILLROM CONTENDS HOWEVER CLAIMS OF COST SAVINGS MAY BE A MIRAGE SAYS SUSAN DURBURG A VICE PRESIDENT AT EVANSTON ILL HOSPITAL WHICH TESTED THE BED EXTENSIVELY SHE NOTES THAT FEW PATIENTS NEED DAILY WEIGHINGS EXCEPT IN KIDNEY OR CRITICALCARE WARDS WHERE MONITORING FLUID INTAKE IS IMPORTANT EVEN IN OUR BUSIEST UNIT WE COULDN'T COME UP WITH A WAY TO GET EVERYTHING DONE WITH ONE LESS BODY SHE SAYS SHE LIKES THE INBED SCALE FOR CONVENIENCE BUT CONCEDES IT CAN GET TO BE A LUXURY MR HILLENBRAND SAYS HE DOESN'T MIND IF HOSPITALS FORGO SOME OF HILLROM'S TOP GADGETRY IF A HOSPITAL DOESN'T WANT SOMETHING THEY DON'T HAVE TO HAVE IT HE SAYS MAYBE A 250BED HOSPITAL NEEDS ONLY 25 BEDS WITH SCALES BUT FURTHER DOWN THE RANKS HILLROM EMPLOYEES ARE LOATH TO LET AN ORDER SLIP AWAY DURING A DEMONSTRATION OF THE SCALE HILLROM'S MR SWENSON CONFIDES WE'RE HAPPY TO SELL INBED SCALES THAT'S HOW WE MAKE HAY SUCH METHODS ARE A FAR CRY FROM HILLROM'S BEGINNINGS IT STARTED MAKING HOSPITAL BEDS IN 1929 MOSTLY BECAUSE ITS GERMANIMMIGRANT FOUNDERS WANTED A NEW USE FOR THEIR INDIANA TIMBER HOLDINGS ITS EARLY BEDS WERE SIMPLE HANDCRANKED WOODEN MODELS COSTING ALL OF 70 OVER TIME THOUGH HILLROM HIT ON TWO BUSINESS PRINCIPLES THAT GUIDED ITS GROWTH THE FIRST WAS INCESSANT INNOVATION HILLROM NOW HOLDS 61 US PATENTS FOR BED DESIGN MOST OF WHICH HAVE HELPED IT MOVE UP THE PRICE CURVE THE COMPANY BROUGHT OUT ELECTRIC BEDS IN 1952 RETRACTABLE BEDS IN 1964 AND BEDS WITH EASYTOREACH SIDERAIL CONTROLS IN 1974 BY THE LATE 1970S TYPICAL HOSPITAL BEDS COST NEARLY 1000 JUST AS IMPORTANT HILLROM POURED ENERGY INTO MARKETING IT HIRED A LARGE SALES FORCE SET COMMISSION RATES AT HIGH LEVELS BUILT AN EXTENSIVE SHOWROOM AND BEGAN BUYING WHAT IS NOW A FLEET OF FIVE CESSNA 650S TO FLY IN CUSTOMERS IN THE EARLY 1980S HILLROM'S PERSISTENCE PAID OFF TWO LEADING COMPETITORS BORGWARNER CORP AND SIMMONS CO CUT BACK SHARPLY ON THEIR HOSPITALBED BUSINESS WITH THE AVERAGE PATIENT STAY SHORTENING FEW NEW HOSPITALS WERE BEING BUILT AND MANY WERE TAKING BEDS OUT OF COMMISSION BUT THE HOSPITALBED BUSINESS WAS HARDLY ON ITS DEATHBED THOUGH UNIT SALES WERE STAGNANT THE CHANCE TO INCREASE PROFITS BY SELLING MORESOPHISTICATED BEDS HAD JUST BEGUN BY HILLROM'S OWN COUNT IT ACHIEVED 27 FIRSTS IN BED AND HEADWALL DESIGN FROM 1981 TO 1992 ALONG THE WAY IT KEPT RAISING PRICES SHARPLY HILLROM'S MARKET DOMINANCE COULD WEAKEN A BIT STRYKER CORP WHICH MAKES STRETCHERS AND OTHER MEDICAL EQUIPMENT PLANS TO START SELLING A PATIENT BED THIS YEAR BUT WHEN HOSPITALS THINK ABOUT BUYING BEDS THEIR FIRST THOUGHT IS A VISIT TO HILLROM IRONICALLY PARTLY BECAUSE OF ITS HIGH PRICES AS MR WELTON OF MEMPHIS METHODIST HOSPITAL SOUTH PUTS IT THE COSTS ARE GETTING SO HIGH IT MAKES SENSE FOR US TO LOOK AT WHAT WE'RE GETTING FOR HILLROM THOSE VISITS OFTEN BRING EXTRA PAYOFFS DURING THE MEMPHIS DELEGATION'S TRIP RUSSELL RUSTY MCCARVER A HILLROM SALESMAN LAID THE GROUNDWORK FOR WHAT COULD BE A 30000 SALE KNOWING THE HOSPITAL WAS PREPARING TO UPGRADE ITS EMERGENCY ROOM HE SCHEDULED A STOP IN A SHOWROOM PACKED WITH 4000 STRETCHERS AND 7000 HEADWALL UNITS FOR WHAT YOU NEED THIS IS ALMOST INDISPENSABLE MR MCCARVER SAID AS HE DEMONSTRATED HOW STRETCHERS CAN BE HOOKED UP TO HEADWALL UNITS WHEN ONE OF THE VISITORS ASKED WHETHER MEMPHIS METHODIST WOULD HAVE TO BUY THE UNIT IN THE PINK VERSION ON DISPLAY MR MCCARVER CRACKED THE SMALLEST OF SMILES WE'VE GOT 500 COLORS HE SAID THIS IS AN INTERIOR DECORATOR'S DREAM 9305060135 930506 ZERO CORP ESTIMATES NET INCOME ROSE 31 IN FISCAL 4TH QUARTER LOS ANGELES ZERO CORP SAID IT EXPECTS TO REPORT THAT NET INCOME ROSE 31 TO 34 MILLION OR 22 CENTS A SHARE FOR THE FISCAL FOURTH QUARTER ENDED MARCH 31 THAT IS AT THE HIGH END OF ANALYSTS' ESTIMATES WHICH AVERAGED 19 CENTS A SHARE FOR THE QUARTER NET INCOME IN THE YEAREARLIER QUARTER TOTALED 26 MILLION OR 17 CENTS A SHARE FOR THE MAKER OF CASES CABINETS COOLING EQUIPMENT AND LUGGAGE IN AN INTERVIEW WILFORD D GODBOLD PRESIDENT AND CHIEF EXECUTIVE SAID FOURTHQUARTER SALES ARE EXPECTED TO REACH 409 MILLION A 79 INCREASE FROM 379 MILLION A YEAR EARLIER HE SAID SALES TO COMMUNICATIONS AND INSTRUMENTATION MAKERS ROSE TO 30 OF TOTAL SALES FROM 27 A YEAR EARLIER SALES TO DATA PROCESSING AND COMPUTER PERIPHERALS MAKERS GREW TO 24 OF THE TOTAL FROM 22 AIRLINE ENCLOSURES MOSTLY CARGO CONTAINERS SALES SLID TO 15 FROM 17 AND GOVERNMENT/MILITARY SALES FELL TO 15 FROM 18 CONSUMER AND OTHER SALES INCLUDING THE ZERO HALLIBURTON LUGGAGE LINE HAS BEEN UNCHANGED AT 16 OF TOTAL SALES MR GODBOLD SAID ZERO EXPECTS TO REPORT FISCALYEAR NET OF 116 MILLION OR 74 CENTS A SHARE A 20 INCREASE FROM 97 MILLION OR 62 CENTS IN THE PRIOR FISCAL YEAR PRODUCT SALES TOTALED 1605 MILLION LITTLE CHANGED FROM 1603 MILLION A YEAR EARLIER TOTAL REVENUE WHICH INCLUDES INTEREST AND OTHER INCOME CAME TO 1626 MILLION IN THE LATEST FISCAL YEAR OFF SLIGHTLY FROM 1633 MILLION A YEAR EARLIER THE EXECUTIVE SAID ZERO'S FOCUS IS ON GROWTH BY ACQUISITIONS THE COMPANY HAS ABOUT 31 MILLION IN CASH AND INVESTMENTS MR GODBOLD SAID LONGTERM DEBT WAS ELIMINATED AS OF MARCH 31 AND THE COMPANY'S RATIO OF CURRENT ASSETS TO CURRENT LIABILITIES IS ABOUT FOURTOONE HE ADDED MR GODBLOD CAUTIONED THAT AN ANNOUNCEMENT CONCERNING AN ACQUISITION WASN'T NECESSARILY IMMINENT 9305060134 930505 WHO'S NEWS LESLIE FAYE COS LESLIE FAY COS NEW YORK THE MANUFACTURER OF WOMEN'S APPAREL NAMED BARBARA KHOURI 44 YEARS OLD SENIOR VICE PRESIDENT OF LICENSING A NEW POST SHE HAD BEEN SENIOR VICE PRESIDENT OF ACCESSORIES OVERSEEING THE NEW YORKBASED HUE LEG WARE OPERATION HER NEW LICENSING RESPONSIBILITIES WILL ENCOMPASS ALL THE COMPANY'S BRANDS AND SHE WILL CONTINUE OVERSEEING THE HUE UNIT 9305060133 930506 AUTOS DODGE HOPES NEW RAM PICKS UP SALES BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT CHRYSLER CORP HAS TRAILED GENERAL MOTORS CORP AND FORD MOTOR CO FOR YEARS IN THE PROFITABLE PICKUP TRUCK MARKET BUT THIS FALL THE NO 3 AUTO MAKER WILL INTRODUCE A DODGE RAM MODEL THAT IT SAYS WILL TRIPLE ITS SALES OF BIG PICKUPS IN THIS CASE BIG IS MORE THAN A CATEGORY IT'S AT THE HEART OF THE IMAGE CHRYSLER IS TRYING TO BUILD FOR THE NEW RAM WHICH HAS A RUGGEDLOOKING FRONT END AND OPTIONAL V10 ENGINE A BROCHURE FOR THE TRUCK CROWS THERE'S AN OUTRAGEOUS 10CYLINDER GROUND SHAKING TWODOOR DODGE THAT REALLY HAULS DESPITE THE HYPE CHRYSLER FACES A FORMIDABLE TASK IN TRYING TO BECOME A MAJOR FORCE IN THE FULLSIZE PICKUP MARKET GM AND FORD TOGETHER SELL ONE MILLION SUCH TRUCKS A YEAR MAKING THEM THE MOST POPULAR PRODUCTS FOR BOTH COMPANIES CHRYSLER SELLS JUST 80000 TOYOTA MOTOR CORP NORMALLY A SERIOUS COMPETITOR IN ANY MARKET IT ENTERS INTRODUCED ITS FIRST FULLSIZE PICKUP TRUCK LAST YEAR BUT DREW MOSTLY YAWNS AND HAD WEAK SALES THE TOYOTA TRUCK THE T100 LACKS A V8 ENGINE A PROBLEM CHRYSLER WON'T HAVE NOR WILL CHRYSLER FACE THE 25 TARIFF ON IMPORTED TRUCKS THAT HINDERS TOYOTA BUT CHRYSLER LIKE TOYOTA WILL HAVE TO CHANGE THE MINDS OF PICKUP BUYERS FOR WHOM THE PURCHASE DECISION USUALLY COMES DOWN TO ONE QUESTION FORD OR CHEVY THOUGH BRAND LOYALTY IN SOME SEGMENTS OF THE CAR MARKET IS ALMOST NONEXISTENT ABOUT 70 OF THE BUYERS OF LARGE PICKUPS CALL THEMSELVES GM OR FORD LOYALISTS WE'RE TRYING TO GET BACK IN THE FULLSIZE PICKUP MARKET AND THERE'S NO QUESTION IT'S NOT GOING TO BE EASY SAYS BERNARD ROBERTSON THE HEAD OF CHRYSLER'S TRUCK DEVELOPMENT GROUP BESIDES THIS CHALLENGE THERE'S ALWAYS THE CHANCE THAT UNEXPECTED QUALITY GLITCHES WILL DERAIL CHRYSLER'S AMBITIONS THAT POSSIBILITY SURFACED ON A RECENT TEST DRIVE FOR THE MEDIA WHEN MR ROBERTSON CLIMBED BEHIND THE WHEEL OF A V10 RAM ON A DESERTED COUNTRY ROAD NEAR CHRYSLER'S PROVING GROUNDS WHEN HE TURNED THE IGNITION KEY NOTHING HAPPENED SOMEHOW THE ENGINE HAD FLOODED ALMOST INSTANTLY AND WHEN HE TRIED TO APPLY THE PARKING BRAKE HE FOUND THE PEDAL WAS MISSING IT'S KIND OF EMBARRASSING MR ROBERTSON SAID TO THE REPORTER STRANDED WITH HIM IT RAN JUST FINE THIS MORNING APOLOGETIC CHRYSLER PUBLICRELATIONS OFFICIALS EVENTUALLY TURNED UP IN A SECOND DODGE RAM THAT PERFORMED FINE DESPITE ALL THIS MANY ANALYSTS PREDICT CHRYSLER'S NEW TRUCK WILL BE A HIT THEY NOTE CHRYSLER'S SUCCESS WITH ITS TWO MOST RECENT VEHICLES THE LH SEDANS AND THE JEEP GRAND CHEROKEE AND THEY POINT TO THE TRUCK'S COMBINATION OF A SLEEK FUNCTIONAL INTERIOR WHICH INCLUDES A DRIVERSIDE AIR BAG AND BIG STORAGE AREAS WITH A RADIATOR GRILLE AND CURVING FENDERS THAT MAKE THE FRONT END LOOK LIKE A FREIGHTHAULING RIG TO MAKE A DENT IN THE FORD AND GM LEAD DESIGNERS REACHED FOR A LOOK THAT WOULD DISTINGUISH THE DODGE RAM THEY LOOKED AT OLD DODGE PICKUPS AND THE POWER WAGON A WORLD WAR IIERA MILITARY FREIGHT HAULER WITH A HUGE RADIATOR GRILLE AND ROUNDED FENDERS THEY GAVE THAT FRONT END A SLEEK 1990'S AERODYNAMIC BRUSH CHRYSLER ALSO IS GIVING THE TRUCK A ROOMY CAB AND OFFERING AN ARRAY OF ENGINES ABOUT 60 OF THE TRUCKS WILL BE SOLD WITH EITHER A 52LITER OR A 59LITER V8 ENGINE CHRYSLER SAYS BUT V6 V10 AND DIESEL ENGINES ALSO WILL BE AVAILABLE THE DESIGN STAFF PHOTOGRAPHED HUNDREDS OF PICKUPS IN USE ACROSS THE COUNTRY TO FIND OUT WHAT OWNERS NEED IN A PICKUP CAB THEY LEARNED MANY OF THE TRUCKS WERE ROLLING OFFICES FOR CONTRACTORS AND THEY INCLUDED SUCH DETAILS AS A STORAGE SPACE LARGE ENOUGH FOR A PERSONAL COMPUTER AND TWO CIGARETTELIGHTER SOCKETS MAKING IT EASY TO KEEP A CELLULAR TELEPHONE PLUGGED IN RON GLANTZ AN ANALYST WITH DEAN WITTER REYNOLDS INC IN SAN FRANCISCO CALLS THE TRUCK STUNNING AND SAYS CHRYSLER WILL SELL MORE THAN 200000 A YEAR ABOUT WHAT THE COMPANY PROJECTS BUT DOUG KEVORKIAN OF JD POWER & ASSOCIATES AN AUTOMOTIVE RESEARCH FIRM PREDICTS SALES OF JUST 127000 ANNUALLY THOUGH WELL BELOW CHRYSLER'S TARGET THAT WOULD STILL BE A HEFTY INCREASE FROM THE CURRENT LEVEL OTHER ANALYSTS SAY SALES WILL START BELOW PROJECTIONS BUT RISE GRADUALLY AS CHRYSLER ROUNDS OUT THE LINE THE AUTO MAKER DOESN'T PLAN TO INTRODUCE A CLUBCAB VERSION A POPULAR PICKUP WITH AN EXTENDED CAB UNTIL AFTER JUNE 1994 ONE THING IS CLEAR MORE PICKUP SALES WILL MEAN MORE PROFIT FOR CHRYSLER EACH RAM WILL CONTRIBUTE 5000 TO 6000 TO ITS BOTTOM LINE ANALYSTS ESTIMATE WITH MARGINS LIKE THAT CHRYSLER'S COMPETITION ISN'T SITTING STILL FORD WILL INTRODUCE AN AIR BAG IN ITS BESTSELLING PICKUP THIS YEAR GM WILL REDESIGN THE INTERIORS AND ADD AN AIR BAG TO ITS CHEVROLET AND GMC TRUCKS IN 1995 AND BOTH AUTO MAKERS WILL MATCH CHRYSLER'S PLAN TO OFFER OPTIONAL FOURWHEEL ANTILOCK BRAKES BUT THE NEW ENTRY FROM CHRYSLER IS SOMETHING GM AND FORD CLEARLY WOULD RATHER DO WITHOUT THE MARKET FOR FULLSIZE PICKUPS A GM SPOKESMAN SAYS IS ONE OF THE LAST MARKETS THAT HASN'T BEEN CLUTTERED WITH A LOT OF COMPETITION 9305060132 930506 BUSINESS BRIEF DOSKOCIL POSTS 1STPERIOD LOSS CITING RISING PORK PRICES AND REORGANIZATION HUTCHINSON KAN DOSKOCIL CO HURT BY RISING PORK PRICES AND THE LINGERING EFFECTS OF ITS BANKRUPTCYCOURT REORGANIZATION POSTED A FISCAL FIRSTQUARTER LOSS ON DECLINING REVENUE FOR THE PERIOD ENDED APRIL 30 THE MEAT PROCESSING COMPANY'S LOSS TOTALED 36 MILLION OR 588 A SHARE INCLUDING A 344 MILLION CHARGE FOR AN ACCOUNTING CHANGE THE RESULTS COMPARE WITH NET INCOME OF 379000 OR SEVEN CENTS A SHARE IN THE FIRST QUARTER OF 1992 REVENUE DECLINED 18 TO 1446 MILLION FROM 1762 MILLION A YEAR EARLIER THE COMPANY WHICH EMERGED FROM BANKRUPTCYCOURT PROTECTION IN 1991 SAID THE SALES DECLINE RESULTED PRIMARILY FROM THE CLOSING IN THE FOURTH QUARTER OF ITS SLAUGHTERING AND FRESH PORK OPERATION IN LOGANSPORT IND THAT OPERATION CONTRIBUTED 378 MILLION TO 1992 FIRSTQUARTER REVENUE THE COMPANY SAID EARNINGS WERE ALSO HURT BY THE RISING COST OF PORK WHICH RESULTED IN LOWER PROFIT MARGINS BY A REALIGNMENT OF ITS DELI BUSINESS AND BY A 400000 EXPENSE RELATED TO NEW ACCOUNTING STANDARDS FOR POSTRETIREMENT MEDICAL BENEFITS JEFF VILLWOCK AN ANALYST AT JOHNSON RICE & CO IN NEW ORLEANS SAID DOSKOCIL'S REVENUE AND OPERATING PROFIT WERE SLIGHTLY AFFECTED WHEN ONE OF THE COMPANY'S LARGE PEPPERONI CUSTOMERS DOMINO'S PIZZA INC BEGAN TO LOSE SOME OF ITS MARKET SHARE MR VILLWOCK SAID THE RESULTS WERE CONSISTENT WITH HIS ESTIMATES HE ESTIMATES THAT DOSKOCIL WILL EARN 110 TO 120 A SHARE IN 1993 COMPARED WITH A LOSS OF 463 A SHARE IN 1992 JOHN T HANES CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THAT THE FIRST QUARTER IS TYPICALLY THE COMPANY'S WEAKEST BUT THAT ITS RAW MATERIAL COSTS HAVE STABILIZED AND THAT SALES VOLUME PARTICULARLY IN THE FOOD SERVICE SEGMENT IS GROWING DOSKOCIL'S STOCK DROPPED 15 IN NATIONAL OVERTHECOUNTER TRADING CLOSING AT 16 DOWN 25 CENTS 9305060131 930506 PEPPERAND SALT BY VIRTUE OF THIS STRICTURE IN ANY FAMILY PICTURE I HAVE TO CONFESS MY BARBER TAKES LESS FASTTRACK DATE YOUR PACE OR MINE 9305060130 930506 CORPORATE FOCUS FOOD LION HOPES TO PROVE IT'S NOT A TOOTHLESS TIGER GROCERY CHAIN STILL LICKING ITS WOUNDS SEEKS TO REGAIN MOMENTUM BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL FOR A COMPANY THAT SPENT MOST OF THE PAST DECADE RIPPING HOME RUNS FOOD LION INC NOW FINDS ITSELF FACING A COUPLE OF STRIKES THE MOST VISIBLE BLOW TO THE GROCERY CHAIN'S FORTUNES CAME IN NOVEMBER WHEN AN ABC NEWS SHOW PRIMETIME LIVE BROADCAST A REPORT ALLEGING THAT FOOD LION ROUTINELY REPACKAGED AND SOLD OUTOFDATE MEAT TO INCREASE PROFIT MARGINS THE SALISBURY NC COMPANY DENIED THE ALLEGATIONS BUT WINNING BACK CUSTOMERS TO ITS 1045 STORES IS PROVING A BIGGER CHALLENGE THAN EXPECTED ESPECIALLY IN MARKETS WHERE CONSUMER LOYALTY HADN'T YET DEVELOPED WHEN THE REPORT AIRED SALES HAD BEGUN TO SLOW BEFORE PRIMETIME SAYS LEE WILDER AN ANALYST AT ROBINSON HUMPHREY FOOD LION'S MOVE IN LATE 1991 INTO THE SOUTHWEST ITS FIRST MAJOR STEP OUTSIDE THE SOUTHEAST MET WITH COMPETITION AND WEAK ENTHUSIASM THE RESULT EARNINGS WHICH HAVE FALLEN SHARPLY IN THE PAST TWO QUARTERS AREN'T LIKELY TO REBOUND UNTIL THE FOURTH QUARTER AT THE EARLIEST ANALYSTS SAY THE COMPANY'S RALLYING CRY OF 2000 BY 2000 OPENING A TOTAL OF 2000 STORES BY THE END OF THE DECADE HAS BECOME A WHISPER FOOD LION ITSELF ACKNOWLEDGES THAT EXPECTATIONS BOTH INSIDE AND OUTSIDE THE COMPANY MAY HAVE GOTTEN OUT OF HAND IT'S LIKE A PROFESSIONAL TEAM THAT HAS DOMINATED A SPORT FOR A LONG TIME SAYS VINCE WATKINS VICE PRESIDENT OF OPERATIONS NOT ONLY THE TEAM'S EXPECTATIONS BUT THE FANS' EXPECTATIONS ARE THAT IT'S SUSTAINABLE FOREVER WITH NO DROP DOMINANT WELL DESCRIBES THE COMPANY'S PERFORMANCE OF THE PAST DECADE FROM 1983 TO 1992 FOOD LION WAS AMONG THE FASTESTGROWING SUPERMARKET CHAINS IN THE COUNTRY OPENING MORE THAN 800 STORES OR ONE EVERY FOUR DAYS ON AVERAGE SALES ROSE AN AVERAGE 225 A YEAR WHILE EARNINGS CLIMBED AN AVERAGE 233 SINCE LAST FALL THE PICTURE HAS CHANGED SUBSTANTIALLY IN THE FIRST QUARTER EARNINGS PLUNGED 56 FROM A YEAR EARLIER AFTER A 55 DROP IN THE FOURTH QUARTER SAMESTORE SALES HAVE SLIPPED AND EXPANSION PLANS HAVE BEEN SCALED BACK MOODY'S INVESTORS SERVICE INC LOWERED ITS RATING ON THE COMPANY'S DEBT IN MARCH PREDICTING THAT FURTHER PRESSURES ON EARNINGS COULD OCCUR ONE OF THE COMPANY'S FOUNDERS RECENTLY RESIGNED FROM THE BOARD SAYING HE DISAGREED WITH FOOD LION'S STRATEGIES AND THREE SHAREHOLDER SUITS HAVE BEEN FILED AGAINST THE COMPANY IN THE WAKE OF THE PRIMETIME REPORT AND A DROP IN FOOD LION'S STOCK PRICE FOOD LION CLAIMS ABC AND THE UNITED FOOD AND COMMERCIAL WORKERS WHICH HAS BATTLED THE NONUNIONIZED COMPANY ARE THE PRIMARY SOURCES OF ITS PROBLEMS BUT INDUSTRY EXECUTIVES AND OBSERVERS SAY THE COMPANY IS PARTLY TO BLAME DELHAIZE LE LION SA OF BELGIUM HOLDS A MAJORITY STAKE IN FOOD LION'S VOTING STOCK FROM A PUBLIC RELATIONS STANDPOINT THEY WERE THEIR OWN WORST ENEMY FOLLOWING THE ABC BROADCAST SAYS JOHN SMALL OF STRATEGIC RETAIL CONSULTING IN FORT WORTH TEXAS DENYING FOR THE MOST PART THAT A PROBLEM EXISTED MAY NOT HAVE BEEN THE BEST STRATEGY HE SAYS I WOULD HAVE ADVISED A MASSIVE MEA CULPA AS OPPOSED TO THE DEFENSIVE POSTURE THAT THEY'RE TAKING FOOD LION ALSO MAY HAVE HURT ITSELF BY UNDERESTIMATING THE CHALLENGES IT WOULD FACE IN THE SOUTHWEST ACCUSTOMED TO GOING UP AGAINST SMALL CHAINS OR INDEPENDENT OPERATORS THE COMPANY ENCOUNTERED POWERHOUSES LIKE ALBERTSON'S INC AND KROGER CO IN THE DALLAS/FORT WORTH MARKET INDEED SUPERMARKETS NATIONWIDE HAVE HAD A TOUGH TIME OF LATE MORE COMPETITION FROM MASS MERCHANDISERS WHOLESALE CLUBS AND OTHER CHAINS COUPLED WITH MINIMAL INFLATION IN FOOD PRICES AND THE WORST RATE OF SALES GROWTH IN 40 YEARS HAVE MADE THE FOOD BUSINESS A REAL CHALLENGE IN ITS NEW SOUTHWESTERN SURROUNDINGS FOOD LION MADE MISSTEPS SAY INDUSTRY ANALYSTS IT WENT IN WITH THE SAME KIND OF STORE IT HAD BUILT IN THE SOUTHEAST A NOFRILLS MARKET WITH ABOUT 29000 SQUARE FEET OF SPACE FOR THE TEXAS SHOPPER USED TO VISITING MUCH LARGER SUPERCOMBO STORES WITH FLORAL DEPARTMENTS PHARMACIES AND VIDEORENTAL COUNTERS THE FOOD LION OUTLETS NEITHER LOOKED NOR FELT COMFORTABLE SAY SEVERAL INDUSTRY OBSERVERS FOOD LION'S MERCHANDISING ALSO SEEMED OUT OF TOUCH LITTLE ATTENTION WAS GIVEN TO REGIONAL PREFERENCES STORES WERE STOCKED WITH BRANDS POPULAR BACK EAST BUT UNFAMILIAR TO SHOPPERS IN THE SOUTHWEST THE COMPANY'S PITCH MOREOVER OF EXTRALOW PRICES WAS QUICKLY NEUTRALIZED RIVALS SIMPLY CUT THEIR OWN PRICES OR DOUBLED OR TRIPLED THE VALUE OF COUPONS JUST COMING IN AND COMPETING ON PRICE ALONE WASN'T ENOUGH SAYS RON JOHNSTON ASSOCIATE PUBLISHER OF THE SHELBY REPORT A TRADE PUBLICATION THEY REALLY DIDN'T BRING ANYTHING TOTALLY UNIQUE TO THE PARTY FOOD LION WON'T DISCLOSE SALES FIGURES FOR ITS SOUTHWEST OPERATIONS BUT THE COMPANY'S 1992 ANNUAL REPORT SAYS THAT OPERATING RESULTS IN THE REGION INCLUDING 93 STORES IN TEXAS OKLAHOMA AND LOUISIANA WERE LESS THAN ANTICIPATED AND SIGNIFICANTLY BELOW THE AVERAGE FOR FOOD LION STORES IN OTHER MARKETS MR WATKINS THE FOOD LION VICE PRESIDENT CHAFES AT THE SUGGESTION THE COMPANY DIDN'T DO ITS HOMEWORK BEFORE ENTERING TEXAS BUT HE CONCEDES THE COMPETITION OUT THERE WAS MUCH BETTER ORGANIZED IN PREPARING FOR OUR ENTRY THAN PERHAPS THEY HAD BEEN IN OTHER AREAS IN RECENT MONTHS FOOD LION HAS ADDED MORE REGIONAL FOODS LIKE RANCH BEANS DIFFERENT PEPPERS CORN HUSKS AND PLANTAIN IN THE MEAT DEPARTMENT A SELECT GRADE OF BEEF POPULAR IN TEXAS HAS BEEN ADDED TO FOOD LION'S CHOICE BEEF OFFERINGS FOR THE FIRST TIME IN ITS 36YEAR HISTORY FOOD LION HAS HIRED AN OUTSIDE ADVERTISING AGENCY WPP GROUP'S OGILVY & MATHER TO DO MARKET RESEARCH AND DEVELOP A SOUTHWESTERN MARKETING STRATEGY FUTURE GROWTH WILL INCLUDE MORE REMODELING AND EXPANDING EXISTING STORES AS OPPOSED TO BUILDING NEW STORES MR WATKINS ESTIMATES 60 TO 65 STORE EXPANSIONS THIS YEAR COMPARED WITH 35 TO 40 LAST YEAR THE COMPANY ALSO PLANS TO OPEN 110 STORES THIS YEAR ACCORDING TO THE ANNUAL REPORT COMPARED WITH 131 IN 1992 THE NEXT FEW MONTHS WILL BE CRUCIAL TO FOOD LION ANALYSTS SAY BY SEPTEMBER THEY'LL RESTART THEIR EXPANSION PROGRAM BUT IT WILL BE IN THEIR TRADITIONAL MARKETS IN THE SOUTHEAST SAYS EDWARD COMEAU OF LEHMAN BROTHERS MEANWHILE LONGTERM PROSPECTS IN THE SOUTHWEST WILL BE SCRUTINIZED IF THE SITUATION SHOWS NO IMPROVEMENT HE SPECULATES THE CHAIN EVENTUALLY MAY HAVE TO SELL ITS STORES AND 11 MILLIONSQUAREFOOT DISTRIBUTION CENTER THERE SUCH TALK IS PREMATURE SAYS MR WATKINS WE INTEND TO BATTLE HARD FOR MARKET SHARE OUT THERE 9305060129 930506 MILITARY REALITY IN YUGOSLAVIA BY MARK HELPRIN THE FOURTH BALKAN WAR OF THIS CENTURY IS NOW TO BE INTERNATIONALIZED AS WERE ITS THREE PREDECESSORS DRIVING THE INTERVENTION ARE NOT THE THRICEBITTEN AND UNDERSTANDABLY SHY EUROPEANS BUT THE UNITED STATES FRESH FROM HALF A VICTORY IN THE PERSIAN GULF AND LED BY A YOUNG PRESIDENT WITH A PATHOLOGICAL FAITH IN THE POWER OF HIS OWN TOUCH THE PRESIDENT'S CONFIDENCE NOTWITHSTANDING HIS POLICY FAILS TO ACCOUNT FOR THE MOTIVATIONS OF THE WARRING PARTIES MISTAKES GENERAL OUTCOMES FOR STRATEGIC AIMS IGNORES MILITARY REALITY SLIGHTS HISTORY AND BLITHELY DISREGARDS THE DANGER OF A WORLD WAR SHOULD THE BOSNIAN SERB PARLIAMENT REJECT THE PEACE PLAN THE ADMINISTRATION'S INTENT IS TO ARM THE BOSNIAN MUSLIMS AND DEPLOY AMERICAN AIRPOWER AGAINST DISPERSED ARTILLERY SHOULD THE PARLIAMENT ACCEPT THE PLAN THE ADMINISTRATION INTENDS TO SEND TENS OF THOUSANDS OF SOLDIERS TO ENFORCE A CEASEFIRE BUT ACCEPTANCE IS NO GUARANTEE OF PEACE LIKE THE VANCEOWEN PLAN THE ADMINISTRATION'S CONCEPTION IS CONDITIONED UPON THE WRONG ANSWER TO THE OFTASKED QUESTION WHAT DO THE SERBS WANT THE SERBS SAY THEY WANT TO PROTECT THEMSELVES A RESPONSE THAT SEEMS GROTESQUELY INADEQUATE AS AN EXPLANATION FOR THEIR RELENTLESS PROSECUTION OF A WAR LARGELY AGAINST INNOCENT CIVILIANS SO INADEQUATE IN FACT THAT IT ENCOURAGES THE CONVENTIONAL WISDOM WHICH IS THAT THE PEOPLES OF THE BALKANS ARE ENTRAPPED IN A MYSTICAL HATRED THAT RENDERS THEM INCAPABLE OF LIVING WITH ONE ANOTHER STOPPING AT THE CONVENTIONAL WISDOM THE VANCEOWEN PLAN AND WASHINGTON WOULD HALT THE FIGHTING AND DIVIDE BOSNIA INTO A CHECKERBOARD OF ETHNIC ENCLAVES THIS HOWEVER WOULD ENSURE EVENTUAL RESUMPTION OF THE WAR BECAUSE WHAT THE SERBS REALLY WANT IS TO CONSOLIDATE THEIR OWN AREAS INTO A TERRITORY THAT WOULD EMBRACE MOST OF THEIR COMPATRIOTS WHILE REMAINING CONTIGUOUS WITH SERBIA IF ONE LAYS A MAP OF THOSE SECTIONS OF BOSNIA THAT HAVE COME UNDER SERBIAN CONTROL OVER AN ETHNOGRAPHIC CHART SHOWING WHERE THE SERBS LIVE IN BOSNIA ONE WILL SEE ROUGHLY AN 85 CORRESPONDENCE THE REMAINING 15 ARE WHY THE SERBS HAVE KEPT ON FIGHTING WHEN YUGOSLAVIA BROKE UP THE SERBS' MEMORIES OF THE SECOND WORLD WAR MADE THEM RUSH TO THE PREMATURE RESCUE OF SERBS LEFT OUTSIDE THE FOLD THOUGH ONE CANNOT DISMISS THEIR MOTIVATIONS IT IS A GREAT DEAL MORE THAN IRONIC THAT THEY HAVE BEEN METING OUT TO OTHERS THE TREATMENT THAT THEY SO FEAR NONETHELESS WHATEVER THE SERBS' MORAL STANDING THE VANCE CHECKERBOARD AND AS MANY AMERICAN DIVISIONS AS ARE REQUIRED TO IMPOSE IT WILL SUCCEED ONLY IN POSTPONING A NEW ROUND OF FIGHTING LIKE THE FIRST UNITED NATIONS PARTITION IN PALESTINE IT IS AN EPHEMERAL CONSTRUCTION THAT WILL GIVE WAY TO THE REALITIES OF POWER COMPLEMENTING THE FAILURE TO DIVINE WHY THE SERBS HAVE BEEN IN THE FIELD IS THE FAILURE TO ENUNCIATE A MILITARY PURPOSE THE CESSATION OF HOSTILITIES BETWEEN THE WARRING PARTIES MAY BE ACHIEVED AS A RESULT OF BUT CANNOT ITSELF BE THE AMERICAN STRATEGIC AIM THIS IS THE SAME MISTAKE THE US MADE IN LEBANON AND TO SOME EXTENT IN VIETNAM CIVILIAN LEADERS WITHOUT MILITARY EXPERIENCE ARE FOREVER MISTAKING THEIR SOLDIERS FOR POLICE A MODERN ARMY THAT DOES NOT MOVE IS BOUND TO FAIL FOR IT IS A MACHINE THAT HAS BEEN CONSTRUCTED FOR MANEUVER AND NOTHING ELSE KEEPING IT STILL IS THE BEST WAY TO KILL IT AS FAR AS MANEUVER IS CONCERNED THERE IS NO DOUBT THAT NATO OR EVEN THE US ALONE COULD CONQUER THE HEART OF SERBIA IN THE KIND OF OPERATION FOR WHICH THEIR ARMIES ARE FORMED AND TRAINED LANDING TRANQUILLY AT RIJEKA AND STAGING IN NORTHERN ITALY AND THEN DRIVING FROM ZAGREB IN A BLITZKRIEG ON WELLDEVELOPED ARTERIES OF TRANSPORTATION THROUGH VIRTUALLY INDEFENSIBLE PLAINS FINALLY TO BELGRADE THE HEART OF YUGOSLAV DEFENSE HOWEVER IS IN THE MOUNTAINS TITO NEVER INTENDED TO HOLD THE PLAIN AGAINST THE SOVIETS THE IDEA WAS TO ADJOURN TO THE UPLANDS WHERE THE FIGHTING IS TODAY AND WHERE SUCCESSIVE MOUNTAIN RANGES RIVERS RUNNING THROUGH STEEP GORGES PRECIPITOUS DEFILES THICK FORESTS AND AN ARCANE SYSTEM OF LOGISTICSSTUFFED CAVES AND REDOUBTS WOULD ROB OPPOSING FORCES OF THEIR GREATEST STRENGTHS THE COUNTRY IS IMPOSSIBLE FOR ARMOR AND IT GREATLY REDUCES THE EFFECTIVENESS OF AIRPOWER IT IS IN THESE MOUNTAINS THAT CURRENT US PROPOSALS WILL UNFOLD TERRAIN IS NOT THE ONLY OBSTACLE OF THE 24 MILLION PEOPLE IN WHAT WAS ONCE YUGOSLAVIA FOUR MILLION LIVE IN 20000 VILLAGES OF LESS THAN 500 PEOPLE THIS MEANS THAT THE TERRITORY IN QUESTION IS ABOUT 10 TIMES MORE FRAGMENTED THAN THE US COUPLED WITH LESSER COMMUNICATIONS AND THE MORE DIFFICULT TERRAIN IT IS A NIGHTMARE NOT ONLY COULD THE LARGEST OF THE PROPOSED FORCES NOT CONTROL SOMETHING LIKE THIS THEY COULD NOT CONQUER IT AND THEY COULD NOT EVEN KEEP TRACK OF IT THE 60000 TROOPS NOMINATED TO KEEP THE PEACE WOULD BE ABLE TO GARRISON THE AREA SUCCESSFULLY ASSUMING THAT THEY ENCOUNTERED NO RESISTANCE THIS ASSUMPTION IS UNTENABLE GIVEN THAT IT IS LIKELY THAT PEACEKEEPING FORCES WOULD HAVE TO SUPPRESS SCATTERED INTERNECINE VIOLENCE BEYOND THE CONTROL OF BELGRADE ZAGREB OR SARAJEVO IF SUCH ACTIONS WERE PERCEIVED AS AGGRESSION WOE TO THEM A NEW FACTOR COULD COME INTO PLAY THE AFFECTION OF THE SERBS FOR ADVANCING AGAINST IMPOSSIBLE ODDS OR WHAT HAS BEEN POLITELY CALLED THEIR NATIONAL TRADITION OF HEROIC OUTLAWRY AGAINST THE TURKS IN THIS CENTURY ALONE THE SERBS HAVE BEEN WILLING TO COMMIT NATIONAL SUICIDE NO LESS THAN TWICE AND THEY HAVE SOMEHOW LIVED TO TELL THE TALE THE IRAQIS BLUSTERED ABOUT SUCH A THING THE SERBS HAVE IT ON THEIR RESUME IN WORLD WAR II YUGOSLAVIA SUFFERED UP TO 175 MILLION DEAD IN A POPULATION OF 15 MILLION THE MUCH DISCUSSED OPTION OF DEMONSTRATIVE AIR STRIKES WILL NOT DISCOURAGE BUT RATHER WILL GALVANIZE THE SERBS BOMBING IS USUALLY DEEMED BY THOSE WHO ACCOMPLISH IT AS A WAY TO BREAK ENEMY MORALE AND BY THE ENEMY TO BUILD IT BOMBING BELGRADE HAS BEEN REJECTED IN A FLASH OF TEMPORARY SANITY INSTEAD AMERICAN PLANES WILL BE USED TO SILENCE ARTILLERY A HOMELY BUT SALIENT MILITARY TRUTH IS THAT THE PURPOSE OF USING TACTICAL AIRPOWER AGAINST ARTILLERY IS TO CLEAR THE WAY FOR ARMOR AND INFANTRY WITH NOTHING TO FOLLOW AIR STRIKES THE ARTILLERY POSITIONS WILL IMMEDIATELY BE REESTABLISHED THIS AS TE LAWRENCE SAID IS LIKE CUTTING SOUP WITH A KNIFE AND THIS IS THE MOST DEFINITIVE MISSION YET MENTIONED FOR AMERICAN FORCES TIME AND AGAIN EUROPEAN DIPLOMACY HAS FOUNDERED IN THE BALKANS BUT IT IS NOT MERELY CAUTION THAT DICTATES EUROPEAN POLICY THE BRITISH AND FRENCH CANNOT SAY SO PUBLICLY BUT THEY KNOW THAT THE SERBIAN CONQUEST IS DRAWING TO A CLOSE AND THEY DO NOT WANT TO ARM THE BOSNIAN MUSLIMS FOR FEAR THAT IT WOULD PROLONG THE WAR INDEFINITELY SHOULD THE MUSLIMS ATTEMPT TO REGAIN WHAT THEY HAVE LOST ON THE ONE HAND GIVEN WHAT IS HAPPENING TO THESE PEOPLE THIS MAY SEEM TO BE REALPOLITIK AT ITS CRUELEST BUT ON THE OTHER THE IMPERATIVE OF THIS EXERCISE HAS NEVER BEEN TERRITORIAL JUSTICE FOR BOSNIAN MUSLIMS AT THE EXPENSE OF THEIR LIVES THE DETERMINATION TO CONTAIN RATHER THAN INTERNATIONALIZE THE WAR IS THE RESULT OF A MOST IMPORTANT CONSIDERATION ABOUT WHICH ONE HEARS VERY LITTLE EUROPE IS AT THE HEIGHT OF ITS POSTWAR INSTABILITY AND IT IS HARDLY UNIMAGINABLE THAT ITS FRAGMENTED AND CONFUSED SYSTEM OF STATES AND ALLIANCES COULD BE DRAWN INTO YET ANOTHER WORLD WAR NOT BECAUSE THE BALKANS HAVE BEEN THE REASON FOR THIS BEFORE BUT BECAUSE OF SPECIFIC CONDITIONS FROM THE RAPID GROWTH OF FASCISM TO ECONOMIC CRISIS TO A NECKLACE OF SMALL WARS BURNING AROUND THE FORMER SOVIET UNION IF FOR EXAMPLE THE SERBS WILL NOT QUIT THE FIELD AND THE US SLIPS INTO WAR WITH SERBIA LIFE WILL BECOME EXTRAORDINARILY DIFFICULT FOR BORIS YELTSIN IF IT IS NOT ALREADY HOPEFUL STATEMENTS ABOUT THE RUSSIAN ECONOMY MAY OR MAY NOT BE JUSTIFIED BUT EVEN IF THEY ARE SOCIAL DECLINE WILL CONTINUE ON OF ITS OWN MOMENTUM FOR A VERY LONG TIME AND THE RUSSIAN MILITARY HAS A WELLESTABLISHED HABIT OF CLOSING THE BARN DOOR AFTER THE HORSE HAS LEFT A RUSSIAN REVANCHE CANNOT BE RESPONSIBLY DISCOUNTED WERE IT TO OCCUR TWO OR THREE RUSSIAN AIRBORNE DIVISIONS AND SEVERAL REGIMENTS OF AIRCRAFT COULD EASILY ARRIVE OVERNIGHT IN BELGRADE IT IS FALSE COMFORT TO POINT TO THE DIMINISHED FORMER SOVIET ORDER OF BATTLE FOR NATO'S ORDER OF BATTLE HAS BEEN DIMINISHED IN ROUGHLY EQUAL MEASURE AND RUSSIA THE HISTORICAL PATRON OF THE SERBS IS STILL A NUCLEAR SUPERPOWER THOUGH IT IS NOT POSSIBLE TO DEAL WITH THE MURDER OF CHILDREN AND OTHER INNOCENTS AS A MATTER OF POLITICOMILITARY ANALYSIS RATHER THAN AS A MORAL QUESTION THE FIRST REQUIREMENT OF MORALITY IS THAT THE WAR BE CONTAINED THE SECOND IS THAT AMERICAN LIVES NOT BE SACRIFICED FOR THE SAKE OF A GRAND GESTURE THAT MAY EITHER REAP THE BENEFITS OF A CONFLICT ENDING OF ITS OWN ACCORD OR FAR WORSE REIGNITE IT MR HELPRIN A NOVELIST IS A CONTRIBUTING EDITOR OF THE JOURNAL 9305060128 930506 CORRECTIONS & AMPLIFICATIONS REP STEVE GUNDERSON IS A WISCONSIN REPUBLICAN YESTERDAY'S ARTICLE ON LABOR SECRETARY ROBERT REICH INCORRECTLY SAID MR GUNDERSON WAS FROM MINNESOTA CRAY COMPUTER CORP AND THREE OF ITS OFFICERS SETTLED A LAWSUIT BROUGHT BY SHAREHOLDERS FOR 5 MILLION AN ARTICLE YESTERDAY INCORRECTLY REPORTED THE SETTLEMENT AMOUNT AS 4 MILLION AUTO MAKERS SOLD 605907 USBUILT CARS IN APRIL IN AN ARTICLE YESTERDAY THE FIGURE WAS MISSTATED AS 768778 CARS HONDA MOTOR CO SOLD 25654 ACCORDS IN THE US LAST MONTH THE ARTICLE MISSTATED THE AMOUNT AS 20159 ACCORDS 9305060127 930506 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 5/8 LOW 2 13/16 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 303 60 TO 119 DAYS 305 120 TO 149 DAYS 306 150 TO 179 DAYS 308 180 TO 244 DAYS 315 245 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 307 30 DAYS 309 60 DAYS 310 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 262 TWO MONTHS 263 THREE MONTHS 270 SIX MONTHS 292 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 3 ONE MONTH 302 THREE MONTHS 307 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 3/16 3 1/16 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 718 60 DAYS 730 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 719 60 DAYS 729 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 9305060126 930506 LUKENS STEEL TO RAISE BASE PRICES COATESVILLE PA LUKENS STEEL CO A UNIT OF LUKENS INC SAID IT WILL RAISE ITS BASE PRICE OF CARBON AND HIGHSTRENGTH LOWALLOY PLATE STEEL BY 10 A TON FOR A BASE PRICE OF 515 A TON THE STEELMAKER SAID THE INCREASE WHICH WILL APPLY TO ORDERS BEGINNING MAY 14 AND SHIPMENTS JULY 4 COMES IN THE WAKE OF SIMILAR PRICE INCREASES LAST WEEK BY USX CORP'S US STEEL GROUP AND BETHLEHEM STEEL CORP 9305060125 930506 ROYAL INSURANCE HOLDINGS OFFER LONDON ROYAL INSURANCE HOLDINGS PLC LAUNCHED A 404 MILLION 6325 MILLION RIGHTS ISSUE OF NEW SHARES AT A PRICE OF 255 PENCE APIECE AT THE SAME TIME ROYAL INSURANCE REPORTED IT RETURNED TO THE BLACK IN THE FIRST QUARTER POSTING A PROFIT OF 2 MILLION COMPARED WITH A YEAREARLIER LOSS OF 48 MILLION THE BRITISH INSURER ALSO PREDICTED IT WOULD PAY A 1993 DIVIDEND OF NO LESS THAN 65 PENCE A SHARE UP 30 FROM 50 PENCE IN 1992 9305060124 930506 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN LONDON'S COVENT GARDEN BUILT IN 1858 WILL BE CLOSED IN 1997 FOR TWO YEARS FOR A MODERNIZATION THAT CRITICS FEAR COULD RESULT IN FINANCIAL RUIN FOR THE VAUNTED ROYAL BALLET AND ROYAL OPERA HOUSE ARTISTRY ASIDE MOUNTING PERFORMANCES ISN'T ECONOMICAL OR EFFICIENT THE STAGE FOR SCENE SHIFTING IS POWERED BY A WORLD WAR I SUBMARINE ENGINE AND CRAMPED BACKSTAGE SPACE REQUIRES DRESSING ROOMS ELSEWHERE IN THE CITY FOR MANY PERFORMERS BUT THE RENOVATION AND EXPANSION IS EXPECTED TO COST 230 MILLION DAUNTING FOR AN ARTS COMPANY THAT DESPITE CHARGING AS MUCH AS 300 A TICKET IS ACCUSED OF CATERING TO AN ELITE FEW AND RUNNING A 55 MILLION DEFICIT THE GOVERNMENT WHICH PROVIDED 29 MILLION IN SUBSIDIES LAST YEAR WON'T PROVIDE ANY CASH FOR THE PROJECT THUS COVENT GARDEN PLANS TO LAUNCH A 70 MILLION APPEAL AT YEAR END AND TO RELY PARTLY ON BRITAIN'S NEW LOTTERY FOR THE ARTS AND SPORTS BUT MOST OF THE FUNDING IS TO COME FROM UNCERTAIN EARNINGS FROM PLANNED SHOPS OFFICES RESTAURANTS AND BARS ON THE COVENT GARDEN SITE JUST AS BRITAIN IS EMERGING FROM RECESSION BAD LOANS AT 21 JAPANESE BANKS IN THE PAST YEAR TOTAL AT LEAST 134 TRILLION YEN 12154 BILLION THE NIHON KEIZAI SHIMBUN BUSINESS DAILY REPORTED THESE LOANS INCLUDING THOSE TO CLIENTS THAT WENT BANKRUPT OR ON WHICH INTEREST HASN'T BEEN PAID FOR SIX MONTHS OR MORE ARE TO BE DISCLOSED BY BANKS FOR THE FIRST TIME IN RESULTS FOR THE YEAR ENDED MARCH 31 THE BAD LOANS EXCEED 1 TRILLION YEN 907 BILLION EACH AT SAKURA BANK FUJI BANK SUMITOMO BANK AND DAIICHI KANGYO BANK GROWING NUMBERS OF LAIDOFF WORKERS IN CHINA CAN'T FIND NEW JOBS COMPLICATING GOVERNMENT EFFORTS TO REFORM THE LABOR SYSTEM THAT ONCE GUARANTEED LIFETIME EMPLOYMENT ONLY 40 OF FIRED WORKERS FOUND OTHER JOBS LAST YEAR DOWN FROM 60 IN 1991 THE CHINA DAILY SAID WITHOUT SPECIFYING TOTALS TO PREVENT LABOR UNREST BEIJING IS REQUIRING STATE ENTERPRISES TO FIND JOBS FOR ALL DISMISSED WORKERS WHO ARE BEING ENCOURAGED TO START THEIR OWN BUSINESSES OR ENTER THE SERVICE INDUSTRY TO AVOID DEFEAT THE BRITISH GOVERNMENT SAID IT WOULD ACCEPT AN OPPOSITION AMENDMENT TO A PARLIAMENTARY MEASURE RATIFYING THE EUROPEAN COMMUNITY UNITY TREATY THE AMENDMENT CALLS FOR DROPPING A CLAUSE THAT WOULD LET BRITAIN BE EXEMPT FROM THE TREATY'S SOCIAL CHARTER WHICH SETS MINIMUM WORKPLACE STANDARDS IN THE EC THE GOVERNMENT HAS SAID THE CHARTER WOULD REDUCE EUROPE'S ALREADY DECLINING COMPETITIVENESS AND ADD TO THE EC'S ECONOMIC WOES ALL EC MEMBERS EXCEPT BRITAIN AND DENMARK HAVE RATIFIED THE TREATY FOR MONETARY POLITICAL AND ECONOMIC UNIFICATION KYRGYZSTAN ADOPTED ITS FIRST POSTSOVIET CONSTITUTION PARLIAMENT APPROVED THE CHARTER WHICH PROVIDES A LEGAL BASIS FOR THE SMALL REPUBLIC'S RAPID MOVEMENT FROM COMMUNISM TO CAPITALISM AND GREATER DEMOCRACY A CENTRAL ASIAN MODEL OF WESTERNSTYLE REFORMS UNDER THE CONSTITUTION A 105SEAT SINGLECHAMBER FULLTIME PARLIAMENT WILL REPLACE THE CURRENT ONE ELECTED BEFORE KYRGYZSTAN GAINED INDEPENDENCE WHEN THE SOVIET UNION COLLAPSED IN 1991 AND IT SEPARATES THE ROLES OF HEAD OF GOVERNMENT AND HEAD OF STATE ITALY APPROVED A 43 INCREASE IN MANDATORY AUTOLIABILITY INSURANCE RATES RETROACTIVE TO MAY 1 INSURERS WANTED AN INCREASE OF AT LEAST 9 AS THESE POLICIES ARE THEIR LEAST PROFITABLE WHILE COSTS FOR DAMAGES ARE GROWING AT 11 A YEAR INSURERS ALSO WERE DISAPPOINTED THAT REGULATORS DIDN'T MOVE TO FREE THE LIABILITY RATES THE LAST STILL SET BY THE GOVERNMENT NEXT YEAR THE RATES MUST BE DEREGULATED UNDER EUROPEAN COMMUNITY RULES A SCHOLARLY BOOK ATTACKING JAPAN'S INCREASINGLY MONEYCENTERED DISPOSABLE SOCIETY AND EXTOLLING THE VIRTUES OF A SIMPLE LIFE HAS BECOME A RUNAWAY BESTSELLER JUST 8000 COPIES OF THE CONCEPT OF HONEST POVERTY BY KOJI NAKANO WERE PUBLISHED INITIALLY BUT ITS WILD POPULARITY HAS LED TO 40 REPRINTS AND 600000 BOOK SALES IN THE PAST EIGHT MONTHS THE BOOK WHICH PORTRAYS 15 HISTORICAL FIGURES' PLAIN LIVING HONESTY SIMPLICITY AND SPIRITUAL RICHNESS TOUCHED A NERVE AMONG JAPANESE PUT OFF BY POLITICAL SCANDALS AND THE CONSPICUOUS CONSUMPTION BUILT ON SPECULATIVE INVESTMENTS THAT COLLAPSED IN THE LATE 1980S HOWEVER RICH JAPAN BECOMES IT WILL NEVER GET THE RESPECT OF THE WORLD SAID MR NAKANO 68 YEARS OLD TO EARN RESPECT WE NEED DIGNITY CHIVALRY AND THE PHILOSOPHY OF HONEST POVERTY OUR IMAGE IS THAT OF A COUNTRY THAT'S GOOD AT MAKING THINGS BUT HAS NO CULTURE FOREIGNERS SAY JAPANESE LACK CHARACTER AND DIGNITY AND THINK OF US JUST AS PEOPLE WITH MONEY MORE THAN 300000 TEACHERS IN POLAND WENT ON STRIKE FOR HIGHER WAGES AND MORE GOVERNMENT FUNDING FOR EDUCATION THE SOLIDARITY UNION WALKOUT WAS PART OF AN ACTION BY STATE WORKERS WHO OPPOSE CUTS IN HEALTHCARE CULTURE AND SCIENCE FUNDING TO CONTROL INFLATION AND REDUCE THE BUDGET DEFICIT IN ROMANIA THOUSANDS OF MASSTRANSIT AND TRUCK DRIVERS AND HEALTH WORKERS STAGED A ONEDAY WARNING STRIKE TO PROTEST FOODSTAPLE PRICES THAT QUADRUPLED AND ELECTRICITY RATES THAT QUINTUPLED AFTER SUBSIDIES WERE ENDED LAST WEEK 9305060123 930506 VYSTAR TO ACQUIRE MEGAHERTZ SALT LAKE CITY VYSTAR GROUP INC SAID IT AGREED TO ACQUIRE MEGAHERTZ CORP A PRIVATELY HELD MAKER OF MODEMS FOR PORTABLE COMPUTERS VYSTAR ALREADY OWNS A 47 STAKE IN MEGAHERTZ ITS ONLY BUSINESS ASSET IS ITS MEGAHERTZ SHARES UNDER THE AGREEMENT MEGAHERTZ SHAREHOLDERS WILL RECEIVE ABOUT 79 MILLION SHARES OF VYSTAR COMMON STOCK AFTER THE MERGER VYSTAR WILL HAVE ABOUT 15 MILLION SHARES OUTSTANDING VYSTAR'S STOCK ROSE 25 CENTS TO 1225 IN NATIONAL OVERTHECOUNTER TRADING VALUING THE DEAL AT 968 MILLION 9305060122 930506 SOUTHWEST AIRLINES' APRIL TRAFFIC DALLAS SOUTHWEST AIRLINES SAID ITS APRIL TRAFFIC JUMPED 221 TO 137 BILLION REVENUE PASSENGER MILES FROM 112 BILLION LAST YEAR A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED WAS 693 COMPARED WITH 673 FOR THE YEARAGO PERIOD FOR THE FIRST FOUR MONTHS OF 1993 SOUTHWEST FLEW 501 BILLION REVENUE PASSENGER MILES COMPARED WITH 422 BILLION FOR THE SAME PERIOD IN 1992 AN INCREASE OF 187 THE YEARTODATE LOAD FACTOR WAS 656 COMPARED WITH 639 FOR THE SAME PERIOD LAST YEAR 9305060121 930506 CBS ISSUES 19 MILLION SHARES NEW YORK CBS INC SAID IT ISSUED 19 MILLION NEW SHARES OF COMMON STOCK AND PAID OUT LESS THAN 1 MILLION IN CASH TO RECALL ALL OF ITS OUTSTANDING 5 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2002 DEBENTURES WITH A FACE VALUE OF 3896 MILLION REPRESENTING 998 OF THE TOTAL WERE CONVERTED INTO CBS SHARES WHILE DEBENTURES TOTALING 905000 OF PRINCIPAL WERE REDEEMED 9305060120 930506 ITT TO SELL UNSECUREDLOAN BUSINESS TO CONSORTIUM LED BY GOLDMAN SACHS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ITT CORP REACHED A PRELIMINARY ACCORD TO SELL ITS DOMESTIC UNSECURED CONSUMER LOAN PORTFOLIO FOR ABOUT 17 BILLION TO A CONSORTIUM LED BY INVESTMENT BANKING FIRM GOLDMAN SACHS & CO AN AFFILIATE OF GOLDMAN SACHS WILL BE THE LEAD INVESTOR IN A POOL TO PURCHASE THE 218 BILLION PORTFOLIO HOUSEHOLD INTERNATIONAL INC A PROSPECT HEIGHTS ILL BANKING AND FINANCIAL SERVICES CONCERN WILL SERVICE THE PORTFOLIO THROUGH ITS HOUSEHOLD FINANCE CORP UNIT AND ACQUIRE A 25 STAKE IN THE CONSORTIUM GOLDMAN SACHS'S INVOLVEMENT WAS AN UNUSUAL TURN IN ITT'S MOVE TO SELL THE CONSUMER BANKING OPERATION ITT HAD HIRED GOLDMAN SACHS AND INVESTMENT BANKING FIRM LAZARD FRERES & CO IN JANUARY TO HELP ARRANGE SALE OF THE UNIT AFTER STUDYING THE BUSINESS HOWEVER GOLDMAN WITHDREW AND DECIDED TO ORGANIZE A BUYER'S GROUP LAZARD FRERES THEN WORKED OUT THE PRELIMINARY SALE PACT IT SURE DOESN'T HAPPEN THIS WAY VERY OFTEN SAID PERRIN LONG HEAD OF RESEARCH AT FIRST MICHIGAN CORP THEY PROBABLY LIKED WHAT THEY SAW AND THOUGHT PERHAPS THAT THEY COULD FIND A MORE INEXPENSIVE WAY TO FINANCE THE LOANS AS PART OF THE TRANSACTION HOUSEHOLD FINANCE WILL ACQUIRE RIGHTS TO ADMINISTER ABOUT ONE MILLION ACCOUNTS WHICH IT EXPECTS TO LIQUIDATE WITHIN THE NEXT 18 MONTHS ITT WILL HAVE A 15 STAKE IN THE CONSORTIUM AND WILL CONTINUE TO MANAGE THE PORTFOLIO ON A FEE BASIS UNTIL THE CLOSING OF THE SALE EXPECTED BY JUNE 1 AS PART OF THE SALE AGREEMENT ITT SAID IT EXPECTS TO COLLECT ABOUT 400 MILLION IN LOAN PAYMENTS BETWEEN FEB 28 AND THE CLOSING DATE ITT SAID THE SALE OF THE DOMESTIC UNSECURED CONSUMER LOAN BUSINESS A PART OF ITT FINANCIAL CORP FITS IN WITH ITS EFFORTS TO EXTRICATE ITSELF FROM NONSTRATEGIC ASSETS EARLIER THIS YEAR ITT ANNOUNCED PLANS TO TRANSFORM ITS FINANCIAL OPERATIONS ESPECIALLY THE CONSUMER LOAN BUSINESS WITH EMPHASIS MOVING TOWARD HOME EQUITY AND OTHER SECURED LENDING ITT RECORDED A 1992 FOURTHQUARTER CHARGE OF 612 MILLION OR 523 A SHARE AS PART OF THE PLAN FOLLOWING THE ANNOUNCEMENT OF THE SALE STANDARD & POOR'S CORP REAFFIRMED ITS SINGLEA SENIOR AND OTHER DEBT RATINGS FOR ITT FINANCIAL ABOUT 108 BILLION IN DEBT IS OUTSTANDING BUT THE RATINGS AGENCY MAINTAINED ITS NEGATIVE OUTLOOK FOR THE UNIT CITING THE LEVEL OF UNCERTAINTY INHERENT IN THE TRANSITION AWAY FROM UNSECURED TO SECURED CONSUMER LENDING COUPLED WITH MANAGEMENT'S GROWTH OBJECTIVES FOR THIS AREA FOLLOWING ITS 1992 FOURTHQUARTER CHARGE ITT CARRIED THE UNSECURED CONSUMER LOAN PORTFOLIO AT ABOUT 65 CENTS ON THE DOLLAR THE GOLDMAN SACHSLED CONSORTIUM PLANS TO PAY ABOUT 79625 CENTS ON THE DOLLAR FOR THE LOANS ITT ALSO SAID IT WOULD RESUME ITS SHARE REPURCHASE PLAN ANNOUNCED IN MAY 1992 WHICH AUTHORIZES THE COMPANY TO BUY BACK 25 MILLION SHARES IN LATE NEW YORK STOCK EXCHANGE TRADING ITT SHARES ROSE 3 TO 8375 I THINK THIS HAS BEEN A PROBLEM AREA FOR THEM AND I THINK IT'S GREAT THAT THEY'LL GET SOME CASH OUT OF THIS SAID CAROL NEVES AN ANALYST WITH MERRILL LYNCH & CO THIS IS A GOOD MOVE FOR THEM AND IT'S GOOD NEWS TO INVESTORS THAT THEY ARE BACK IN THE MARKET REPURCHASING SHARES ITT SAID IT EXPECTS TO REPORT A SECONDQUARTER GAIN FROM THE SALE BUT THAT WILL BE PARTIALLY OFFSET BY FURTHER RESTRUCTURING AT THE CONSUMER FINANCE DIVISION AND COSTS RELATED TO THE SALE FOR THE 1992 SECOND QUARTER ITT REPORTED EARNINGS OF 106 MILLION OR 79 CENTS A SHARE ACCORDING TO A LETTER SENT TO THE ITT CONSUMER FINANCIAL CORP STAFF YESTERDAY ITT PLANS TO SLASH THE WORK FORCE FROM 3500 TO 1000 AND TRIM THE OFFICE NETWORK FROM 512 TO 100 THE CONSUMER FINANCE UNIT ALREADY HAD CUT ITS STAFF FROM 5400 SINCE THE BEGINNING OF THIS YEAR THE ENTIRE PROCESS SHOULD BE COMPLETED WITHIN THE CALENDAR YEAR AT THE OUTSIDE A SPOKESWOMAN SAID ITT'S SALE OF THE DOMESTIC UNSECURED CONSUMER LOAN PORTFOLIO HEIGHTENED ANTICIPATION AMONG ANALYSTS THAT ITT WHICH HAS EIGHT BUSINESS DIVISIONS MAY SELL OR WITHDRAW FROM OTHER NONSTRATEGIC BUSINESSES SOME ANALYSTS SUGGEST ITT MAY PUT PARTS OF ITS TIMBER COMPUTER AND INFORMATION SERVICES AND SHERATON HOTEL BUSINESSES ON THE BLOCK 9305060119 930506 BUSINESS BRIEFS XILINX INC AND ACTEL CORP ENTERED INTO A PATENT CROSSLICENSE AGREEMENT THAT ENDS THE LITIGATION BETWEEN THE CHIP CONCERNS THAT BEGAN IN MARCH 1992 WHEN XILINX SUED ACTEL ALLEGING PATENT INFRINGEMENT DNX CORP'S PHARMAKON RESEARCH INTERNATIONAL INC UNIT WILL EXPAND ITS WAVERLY PA FACILITIES IN RESPONSE TO GROWING DEMAND FOR ITS BIOLOGICAL TESTING SERVICES IONICS INC WILL PAY 825 MILLION TO BUY THE OUTSTANDING SENIOR NOTE AND PREFERRED STOCK OF AQUA COOL ENTERPRISES INC BROOKLYN UNION GAS CO'S FUEL RESOURCES INC UNIT PAID EXXON CORP 20 MILLION FOR INTERESTS IN 60 ARKANSAS NATURAL GAS WELLS MITCHELL ENERGY & DEVELOPMENT CORP BOUGHT INTERESTS IN 346 PETROLEUM WELLS AND 9600 ACRES OF LAND LEASES IN TEXAS AND NEW MEXICO FROM FOUR SELLERS FOR A TOTAL OF 161 MILLION 9305060118 930506 ERICSSON GETS MANNESMANN JOB STOCKHOLM TELEFON AB LM ERICSSON SAID IT REACHED AGREEMENT WITH GERMANY'S MANNESMANN GROUP TO SUPPLY MANNESMANN'S CELLULAR SUBSIDIARY WITH 475 MILLION OF DIGITAL CELLULAR SWITCHING SYSTEMS THE CONTRACT IS THE LARGEST SINGLE DIGITAL CELLULAR CONTRACT THE SWEDISH CONCERN HAS RECEIVED ERICSSON SAID ERICSSON HAS SUPPLIED MANNESMANN WITH CELLULAR EQUIPMENT AND SERVICES SINCE 1990 MANNESMANN'S UNIT MANNESMANN MOBILFUNK OPERATES D2 ONE OF GERMANY'S TWO DIGITAL CELLULAR NETWORKS ERICSSON SAID THE D2 NETWORK LESS THAN A YEAR OLD ALREADY IS THE LARGEST DIGITAL NETWORK IN THE WORLD WITH MORE THAN 200000 SUBSCRIBERS 9305060117 930506 LETTERS TO THE EDITOR CIRCUIT RIDERS STUART M SPEISER'S APRIL 26 LETTER CHALLENGING THE NEED FOR PEER REVIEW OF COURTROOM EXPERTS RAISED SOME INTERESTING POINTS I STARTED TO GAG HOWEVER WHEN HE EQUATED TODAY'S JUNK SCIENCE EXPERTS TO LOUIS PASTEUR THE TYPICAL JUNK SCIENCE EXPERT PRODUCED BY PLAINTIFFS' ATTORNEYS TO HYPOTHESIZE ABOUT UNPROVEN THEORIES IS USUALLY UNQUALIFIED FROM AN EDUCATIONAL OR EXPERIENCE STANDPOINT TO DISCUSS THE MATTERS IN WHICH HE REPRESENTS HIMSELF AS AN EXPERT EVEN MORE OUTRAGEOUS IS THE FACT THAT MANY OF THEM ARE NO MORE THAN PROFESSIONAL TESTIFIERS WITH LITTLE OR NO PRACTICE IN THEIR DESIGNATED FIELD SCIENTISTS FOR HIRE WHO GO FROM CASE TO CASE FOR A FEE TAILORING THEIR TESTIMONY TO THE BEST ADVANTAGE OF THEIR CLIENT SURELY JUSTICE CAN BE BETTER SERVED 9305060116 930506 WILLIAMS COS UNIT BUYS SYSTEM TULSA OKLA A WILLIAMS COS UNIT ACQUIRED A PETROLEUM PRODUCTS PIPELINE SYSTEM FROM SUN PIPE LINE CO A SUBSIDIARY OF SUN CO UNDER THE TERMS OF THE AGREEMENT THE PURCHASE PRICE WON'T BE DISCLOSED IMMEDIATELY THE PENDING ACQUISITION BY WILLIAMS PIPE LINE CO INCLUDES 370 MILES OF PIPELINES ACROSS CENTRAL AND SOUTHERN OKLAHOMA SEVEN ACTIVE PUMPING STATIONS 14 MILLION BARRELS OF STORAGE TANK CAPACITY AND PRODUCTS TERMINALS IN OKLAHOMA CITY AND FORT SMITH ARK CLOSING FOR THE SALE IS SCHEDULED FOR JUNE 1 9305060115 930506 GRAY COMMUNICATIONS STAKE SALE ALBANY GA GRAY COMMUNICATIONS SYSTEMS INC SAID ITS LARGEST SHAREHOLDER THE ESTATE OF JAMES H GRAY SR AGREED TO SELL ALL OF ITS SHARES IN THE COMPANY 794000 SHARES WHICH REPRESENT 26 OF THE COMPANY'S SHARES OUTSTANDING TO BULL RUN CORP FOR 135 MILLION GRAY OWNS AMONG OTHER THINGS THREE NBC AFFILIATED TELEVISION STATIONS AND THE ALBANY HERALD A DAILY NEWSPAPER BULL RUN IN ATLANTA IS A HOLDING COMPANY WITH INTERESTS IN COMPUTERS 9305060114 930506 INTERNATIONAL POLLY PECK EXCHAIRMAN REPORTEDLY JUMPS BAIL LONDON ASIL NADIR FORMER CHAIRMAN OF COLLAPSED CONGLOMERATE POLLY PECK INTERNATIONAL PLC ALLEGEDLY JUMPED BAIL AND FLEW TO HIS NATIVE CYPRUS THE 52YEAROLD FINANCIER WAS TO HAVE FACED TRIAL IN LONDON IN SEPTEMBER ON CHARGES OF THEFT AND FALSE ACCOUNTING RELATING TO THE 13 BILLION 204 BILLION COLLAPSE OF POLLY PECK IN 1990 INSTEAD BREAKING THE CONDITIONS OF HIS 35 MILLION BAIL MR NADIR WAS REPORTED TO HAVE TAKEN AN EXECUTIVE JET TUESDAY NIGHT TO THE TURKISH PART OF CYPRUS BRITISH OFFICIALS SAID THEY HAD ASKED THE TURKISH CYPRIOT AUTHORITIES FOR HIS RETURN BUT LONDON DOESN'T RECOGNIZE THE SELFPROCLAIMED TURKISH REPUBLIC OF NORTHERN CYPRUS MR NADIR TOOK OVER POLLY PECK AN EAST LONDON CLOTHING FIRM AND EXPANDED INTO EVERYTHING FROM FRUIT TO NEWSPAPERS AND ELECTRONICS AT ITS PEAK IN THE SUMMER OF 1990 POLLY PECK WAS VALUED AT 2 BILLION ON THE STOCK MARKET IN SEPTEMBER 1990 A COMPANY LINKED TO MR NADIR WAS RAIDED BY THE SERIOUS FRAUD OFFICE MR NADIR WAS ARRESTED IN DECEMBER POLLY PECK'S WORLDWIDE ASSETS ESTIMATED AT 378 MILLION WERE FROZEN IN 1991 9305060113 930506 INTERNATIONAL RESIGNATION IS SOUGHT FOR EUROPEAN BANK HEAD WASHINGTON THE CHAIRMAN OF A HOUSE SUBCOMMITTEE CALLED FOR THE RESIGNATION OF JACQUES ATTALI PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT BECAUSE OF REPORTS OF EXCESSIVE SPENDING BY THE INSTITUTION REP BARNEY FRANK D MASS CHAIRMAN OF THE SUBCOMMITTEE ON INTERNATIONAL DEVELOPMENT TOLD TREASURY UNDERSECRETARY LAWRENCE SUMMERS AT A HEARING YESTERDAY THAT THE US SHOULD PUSH FOR MR ATTALI'S REMOVAL MR SUMMERS SAID THE CLINTON ADMINISTRATION IS LOOKING CAREFULLY AT THE BANK WHICH WAS CHARTERED BY THE WORLD'S RICHEST COUNTRIES TO MAKE LOANS TO EASTERN EUROPE AND THE FORMER SOVIET REPUBLICS IT IS ENTIRELY UNACCEPTABLE TO US THAT THE BANK BE RUN IN THE FUTURE AS THESE REPORTS SAY THE BANK HAS BEEN RUN IN THE PAST MR SUMMERS SAID THE FINANCIAL TIMES OF LONDON RECENTLY REPORTED THAT THE BANK HAS SPENT MORE MONEY OUTFITTING ITS ORNATE HEADQUARTERS THAN IT HAS MADE IN LOANS 9305060112 930506 ITT HARTFORD BUYS OFFICE PARK NEW YORK ITT CORP'S ITT HARTFORD INSURANCE SUBSIDIARY SAID IT PURCHASED A CORPORATE PARK AND ADJACENT LAND OUTSIDE PORTLAND ORE FROM WACHOVIA BANK & TRUST CO FOR ABOUT 432 MILLION THE 112ACRE SITE CORNELL OAKS CORPORATE CENTER OFFERS MORE THAN 600000 SQUARE FEET OF CORPORATE OFFICES AND SERVICE AMENITIES ITT HARTFORD SAID IT PLANS CONTINUING DEVELOPMENT AT THE SITE AND ON THE ADDITIONAL 19 ACRES OF UNDEVELOPED LAND 9305060111 930506 TECHNOLOGY & HEALTH AEROSPACE FIRMS SEEK TO COOPERATE ON A NEW ROCKET BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FIVE MAJOR AEROSPACE COMPANIES ARE PROPOSING A JOINT EFFORT TO REVIVE PLANNING FOR A NEXTGENERATION ROCKET TO CARRY SATELLITES AND OTHER COMMERCIAL PAYLOADS INTO SPACE STYMIED BY CONGRESS'S REFUSAL TO PAY FOR DEVELOPING AN ADVANCED NEW ROCKET FOR THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION OR THE STAR WARS MISSILEDEFENSE PROGRAM THE COMPANIES HAVE ASKED NASA TO JOIN IN A PLANNING AND RESEARCH PROJECT THAT COULD HELP THE US GAIN A GREATER SHARE OF THE COMMERCIAL LAUNCH BUSINESS NOW DOMINATED BY ARIANSPACE A EUROPEAN JOINT VENTURE THE US HASN'T PRODUCED A MAJOR NEW ROCKET ENGINE IN MORE THAN TWO DECADES AND IS BEHIND IN THE COMMERCIAL LAUNCH BUSINESS ALTHOUGH THE US BUILDS ABOUT 75 OF THE WORLD'S SATELLITES IT LAUNCHES ONLY 30 OF THEM THE APPROACH BY BOEING CO GENERAL DYNAMICS CORP LOCKHEED CORP MARTIN MARIETTA CORP AND ROCKWELL INTERNATIONAL CORP IS AIMED FIRST AT SURVEYING CURRENT AND NEW CUSTOMERS AND SAMPLING HOW MUCH THEY ARE WILLING TO SPEND FOR ACCESS TO SPACE THOSE MARKET SURVEY RESULTS WOULD BE USED TO DEFINE WHAT KIND OF ROCKET WOULD BE IN GREATEST DEMAND AND THEN TO DEFINE TECHNOLOGY BREAKTHROUGHS THAT WOULD ENABLE US COMPANIES TO BUILD IT NASA ADMINISTRATOR DANIEL GOLDIN WHO DISCLOSED THE INDUSTRY'S EFFORTS IN A SPEECH TO THE AMERICAN INSTITUTE OF AERONAUTICS AND ASTRONAUTICS CALLED THE APPROACH NOVEL AND SAID HE IS INTERESTED IN PURSUING THE IDEA FURTHER LETTING THE MARKET DETERMINE THE DESIGN OF A NEW LAUNCH SYSTEM IS A FUNDAMENTAL SHIFT FROM PREVIOUS PRACTICE IN WHICH ROCKET DESIGNS WERE IDENTIFIED FIRST AND COMMERCIAL MARKETS WERE DEVELOPED LATER SAID RICHARD GRANT A VICE PRESIDENT IN BOEING'S MISSILES AND SPACE DIVISION FINALLY THEY GOT THE HORSE IN FRONT OF THE CART SAID JOHN PIKE A SPACE EXPERT FOR THE AMERICAN FEDERATION OF SCIENTISTS HE SAID THE APPROACH IS INTERESTING AND SIGNIFICANT BECAUSE THE INDUSTRY FOR THE FIRST TIME WOULD BE TRYING TO FIND OUT WHAT PRODUCT DEMAND IS OUT THERE RATHER THAN DEVELOPING A PRODUCT AND FIGURING OUT IF THERE IS A MARKET FOR IT MR GRANT OF BOEING SAID THE GROUP IS SEEKING NASA'S INVOLVEMENT TO ADD A DEGREE OF CREDIBILITY AND SERIOUSNESS TO THE PROJECT NASA ALSO WOULD BE ASKED TO CONTRIBUTE A FEW MILLION DOLLARS IN ADDITION THE PLAN WOULD CALL FOR NASA AND INDUSTRY IN LATER STAGES TO ENGAGE IN JOINT RESEARCH TO DEVELOP THE ADVANCED TECHNOLOGY THAT WOULD ENABLE COMPANIES TO BUILD AN ADVANCED ROCKET SUCH GOVERNMENTINDUSTRY COOPERATION IS JUST WHAT THE CLINTON ADMINISTRATION IS ENCOURAGING TO BOOST US COMPETITIVENESS NASA AND THE AEROSPACE INDUSTRY HAVE WORKED TOGETHER BEFORE ON TECHNOLOGY USED BY TODAY'S AIRLINE INDUSTRY MR GRANT SAID THERE HAVE BEEN NO DECISIONS ON WHETHER A NEW ROCKET ULTIMATELY WOULD BE BUILT BY AN INDUSTRY CONSORTIUM OR INDIVIDUAL COMPANIES 9305060109 930506 HONDA ADOPTS INCENTIVE PLAN FOR ITS DEALERS AUTO MAKER PLANS TO OFFER RETAILERS UP TO 1000 FOR EACH CAR THEY SELL BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT HONDA MOTOR CO IS QUIETLY ADOPTING AN AGGRESSIVE DEALER INCENTIVE PROGRAM IN AN EFFORT TO BOOST US SALES OF 1992 AND 1993 ACCORD PRELUDE AND CIVIC MODELS HONDA'S LATEST INCENTIVE PROGRAM GIVES DEALERS 1000 FOR EACH 1992 ACCORD AND PRELUDE THEY SELL AND 500 FOR EVERY 1993 ACCORD THEY SELL THE AUTO MAKER IS OFFERING DEALERS 400 FOR SOME CIVIC MODELS THE INCENTIVE MONEY IS PAID TO DEALERS INSTEAD OF CONSUMERS MAINLY BECAUSE HONDA DOESN'T WANT TO CHEAPEN THE IMAGE OF ITS BRAND HONDA WON'T PUBLICIZE THE DISCOUNTS SO BUYERS MAY HAVE TO BARGAIN FOR THE MONEY THE HONDA INCENTIVE PROGRAM IS A STARK ILLUSTRATION OF HOW TOUGH THE MARKET HAS BECOME FOR THE AUTO MAKER SO FAR THIS YEAR HONDA HAS SOLD 200205 VEHICLES IN THE US DOWN 145 FROM THE SAME PERIOD A YEAR AGO ITS FLAGSHIP ACCORD MODEL HAS SEEN SALES STUMBLE 35 THROUGH APRIL 30 TO 77418 CARS HONDA HAS BEEN REMARKABLY SMART AND LUCKY TO AVOID HEAVY INCENTIVES UP TO NOW SAID JOHN CASESA AN AUTO ANALYST WITH WERTHEIM SCHRODER & CO IN NEW YORK BUT IN TODAY'S MARKET HE SAID HONDA'S ALTERNATIVE TO BEEFEDUP INCENTIVE PROGRAMS IS TO BE STUCK WITH INVENTORY HONDA ALREADY HAS A 90DAY SUPPLY OF UNSOLD CARS ACCORDING TO WARD'S AUTOMOTIVE REPORTS AN INDUSTRY TRADE JOURNAL A 65DAY SUPPLY OF UNSOLD CARS IS CONSIDERED IDEAL IN THE AUTO INDUSTRY HONDA IS CONCENTRATING ITS INCENTIVE PROGRAM HEAVILY ON THE ACCORD WHICH WILL BE REPLACED WITH A REDESIGNED VERSION THIS FALL IN ADDITION TO THE DEALER INCENTIVES THE AUTO MAKER IS GIVING SALES PEOPLE A SHOT AT WINNING AS MUCH AS 500 FOR EACH ACCORD THEY SELL IN ADDITION TO THEIR REGULAR COMMISSION A COMPUTER RANDOMLY REWARDS THE SALES PERSON WITH A BONUS OF BETWEEN 50 AND 500 ADDITIONALLY DEALERS AND SALES MANAGERS ARE AWARDED MERCHANDISE AND TRIPS FOR MEETING CERTAIN ACCORD SALES OBJECTIVES DEALERS HAVE NOT YET BEEN NOTIFIED ABOUT WHAT KIND OF MERCHANDISE AND TRIPS THEY MAY WIN AND HONDA DECLINED TO ELABORATE THE AUTO MAKER IS ALSO GIVING DEALERS 400 FOR EACH CIVIC FOURDOOR DX AND LX MODEL THEY SELL THAT IS EQUIPPED WITH AIR CONDITIONING AND A FOURSPEAKER SOUND SYSTEM CIVIC SALES ARE UP 288 TO 80903 VEHICLES THROUGH APRIL 30 PRELUDE SALES MEANWHILE HAVE DROPPED 309 TO 8553 VEHICLES THROUGH APRIL 30 WE'VE SEEN SOME RESURGENCE IN SALES A HONDA SPOKESMAN SAID PROGRAMS LIKE THESE ARE INTENDED TO ADD FURTHER MOMENTUM FOR YEARS HONDA WAS THE ENVY OF THE AUTO INDUSTRY BECAUSE IT COULD SELL MORE AND MORE CARS WITHOUT THE AID OF BIG REBATES OR OTHER DISCOUNTS BUT AS THE COMPETITION GOT STIFFER AND HONDA'S BREADANDBUTTER MODEL HAS GOTTEN OLDER THE AUTO MAKER HAS SUCCUMBED TO MARKET PRESSURES LAST YEAR HONDA OFFERED DEALERS A 1200 INCENTIVE ON ITS CARS THIS IS A ROUGH PERIOD SAID MR CASESA THE COMPETITION HAS GOTTEN A LOT BETTER SOME OF HONDA'S RIVALS ARE EVEN MORE AGGRESSIVELY DISCOUNTING THEIR CARS MANY AUTO COMPANIES ARE OFFERING REBATES OF UP TO 2000 ON CERTAIN VEHICLES AND MOST OFFER INCENTIVES DIRECTLY TO THE CUSTOMER DEALERS SAID YESTERDAY THEY NEED THE BIGGER DISCOUNTS TO HELP OFFSET RECENT PRICE INCREASES ANNOUNCED BY THE AUTO MAKER LAST MONTH HONDA BOOSTED PRICES BY AS MUCH AS 65 OR 450 IN RESPONSE TO THE SURGING VALUE OF THE YEN AGAINST THE DOLLAR IT WAS THE SECOND PRICE HIKE ANNOUNCED BY THE AUTO MAKER IN THREE MONTHS THEY'RE TRYING TO BE IN THE BALLGAME SAID ONE HONDA DEALER THEY NEED TO DO SOMETHING DURING THIS PERIOD OF TIME 9305060108 930506 LOSING ITS EDGE GERMANY IS TROUBLED BY HOW LITTLE WORK ITS WORKERS ARE DOING MANY HOLIDAYS SHORT WEEKS AND EARLY RETIREMENTS CRIMP COMPETITIVENESS KOHL STRIVES TO SWAY UNIONS BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL AUGSBURG GERMANY AS THE STEAM BLOWS OUT OF THE GERMAN ECONOMY THERE IS ANYTHING BUT A HOLIDAY SPIRIT HERE EVEN THOUGH THE CITY HAS MORE HOLIDAYS THAN ANYWHERE ELSE IN THE COUNTRY A HOLIDAY COSTS GERMAN INDUSTRY AN AVERAGE OF 55 BILLION MARKS 35 BILLION COMPLAINS HUBERT STAERKER HEAD OF ZEUNA STAERKER A MAKER OF AUTOEXHAUST SYSTEMS EACH ONE COSTS OUR FIRM ABOUT A HALF PERCENT OF ANNUAL INCOME MR STAERKER HAS LOBBIED TO HAVE SOME HOLIDAYS ABOLISHED BUT MOST ARE CATHOLIC FEASTS AND CHURCH GROUPS AND LEISURE LOVERS HAVE SO FAR OUTGUNNED THE ABOLITIONISTS AN ACCUMULATION OF LUXURIES SUCH AS THE RAMPANT HOLIDAYITIS IS JUST ONE PROBLEM STIRRING CONSIDERABLE WORRY IN GERMANY WHERE A JOINT REPORT FROM SIX LEADING RESEARCH INSTITUTES EARLIER THIS WEEK PAINTED A DIM PICTURE OF DECLINING OUTPUT FALLING INVESTMENT AND RISING UNEMPLOYMENT IN EUROPE'S LARGEST ECONOMY WITH THE HIGHEST LABOR COSTS IN THE WORLD FOR THE FOURTH YEAR RUNNING AND THE BILL FOR UNIFICATION OF THE FORMER EAST AND WEST GERMANYS PUSHING THE COMBINED TAX BURDEN TO A NATIONAL RECORD OF 437 OF GROSS DOMESTIC PRODUCT BUSINESS AND POLITICAL LEADERS FRET THAT THE COUNTRY'S COMPETITIVE ADVANTAGES HAVE ERODED SIGNIFICANTLY A SUCCESSFUL INDUSTRIAL NATION WHICH MEANS A NATION WITH A FUTURE DOESN'T ALLOW ITSELF TO BE ORGANIZED AS A COLLECTIVE AMUSEMENT PARK CHANCELLOR HELMUT KOHL DECLARED RECENTLY IN ONE OF HIS MANY COMMENTS ON STANDORT DEUTSCHLAND GERMANY'S SUITABILITY AS A PLACE TO DO BUSINESS HE AND OTHER POLITICAL LEADERS WONDER HOW TO CONVINCE THE MOST CODDLED WORKERS IN EUROPE AND PERHAPS THE WORLD THAT THE HOLIDAY IS OVER FOR AN ECONOMY THAT MOTORED ALONG WITH SUSTAINED GROWTH FOR 10 YEARS INCLUDING A UNIFICATIONRELATED BOOM THAT INSULATED IT FOR TWO YEARS OF THE GLOBAL RECESSION THE TURNAROUND CAME SHARPLY ACCORDING TO THE INSTITUTES' REPORT THE WESTERN GERMAN ECONOMY IS LIKELY TO DERIVE LITTLE BENEFIT FROM THE CENTRAL BANK'S RECENT NIGGARDLY INTERESTRATE CUTS AND IS EXPECTED TO SHRINK AS MUCH AS 2 THIS YEAR THE FEDERAL GOVERNMENT IN BONN HAS FINALLY ACKNOWLEDGED WHAT ANALYSTS HAVE BEEN SAYING FOR SOME TIME THAT THIS COULD BE THE WORST POSTWAR RECESSION DEUTSCHE BANK'S CHIEF EXECUTIVE HILMAR KOPPER WARNS THAT GERMANY WILL BE LUCKY TO ACHIEVE ZERO GROWTH NEXT YEAR MORE THAN IN PAST RECESSIONS THE TALK IN THIS EXPORTDEPENDENT LAND IS NOT ABOUT A REVIVAL WHEN FOREIGN DEMAND PICKS UP BUT ABOUT DEEPER ECONOMIC PROBLEMS WE HAVE A STRUCTURAL CRISIS IN THIS COUNTRY WE PRODUCE TOO EXPENSIVELY SAYS MANFRED SCHOLZ CHIEF FINANCIAL OFFICER OF HAINDL PAPER ONE OF EUROPE'S BIGGEST PAPERMAKERS AND AUGSBURG'S SECONDLARGEST EMPLOYER MR SCHOLZ RATTLES OFF AN INCREASINGLY HEARD LITANY OF PROBLEMS WE HAVE THE SHORTEST WORKWEEK AND THE LONGEST VACATIONS WE HAVE THE EARLIEST RETIREES WHICH MEANS THE SHORTEST CAREERS WE HAVE THE OLDEST STUDENTS AS WELL AS THE MOST HOLIDAYS BECAUSE OF ALL THE FACTORS CURTAILING WORK HOURS HAINDL WHICH EXPECTS TO REPORT ITS SECOND CONSECUTIVE YEAR OF SHRINKING PROFITS FOR 1992 IS FORCED TO RUN ITS MACHINES 11 FEWER DAYS A YEAR THAN ITS FOREIGN COMPETITORS DO IT IS SUCH BUSINESS CONDITIONS THAT ARE FORCING GERMAN LEADERS TO CONCLUDE THAT THE STEEP COSTS OF UNIFICATION AND THE PROBLEMS OF LIFTING PRODUCTIVITY IN THE FORMER EAST GERMANY TO WESTERN LEVELS AREN'T THE ONLY ECONOMIC DIFFICULTIES THAT THEY FACE THEY BELIEVE THAT GERMANY LIKE THE US SINCE THE MID1980S AND JAPAN MORE RECENTLY MUST GO THROUGH A WRENCHING RESTRUCTURING TO LIFT ITS ECONOMIC PERFORMANCE TO CURRENT GLOBAL STANDARDS BEFORE WE COULD ALWAYS RELY ON OUR COMPETITORS' ERRORS SAYS FRANZ JOSEF LINK OF COLOGNE'S INSTITUTE OF THE GERMAN ECONOMY BUT IN THE INTERIM THESE COMPETITORS HAVE STOPPED MAKING THE MISTAKES THEY'VE LEARNED WHAT YOU HAVE TO DO TO MAKE YOURSELF FIT AND THE POOR BUSINESS CONDITIONS IN GERMANY ARE PRODUCING MORE STORIES LIKE MR STAERKER'S MIRED IN THE DOWNTURN OF THE GERMAN AUTO INDUSTRY MR STAERKER HAS BEEN FRUSTRATED BY HIS HIGH WAGE COSTS RESTRICTIVE UNION WORK RULES THAT KEEP GERMAN MACHINES RUNNING ON AVERAGE 20 FEWER HOURS THAN IN THE REST OF WESTERN EUROPE AND THE MANY HOLIDAYS AS A RESULT MR STAERKER'S FAMILY FIRM WHICH HAS BEEN ANCHORED IN AUGSBURG SINCE 1845 IS GOING INTERNATIONAL IT OPENED ITS FIRST FOREIGN PLANT IN 1991 IN SOUTH AFRICA AND ANOTHER BEGINS PRODUCTION IN HUNGARY THIS SUMMER LATER IN THE DECADE THE COMPANY PLANS TO SET UP A PLANT IN SOUTH CAROLINA WHERE MR STAERKER EXPECTS TO PAY ABOUT 15 AN HOUR AGAINST 26 IN AUGSBURG ECONOMISTS SAY MANY GERMAN INDUSTRIALISTS ARE OVERCOMING THEIR TRADITIONAL RELUCTANCE TO MOVE PRODUCTION ABROAD RELOCATION THEY ARGUE IS PART OF AN ADAPTATION DELAYED BY THE UNIFICATION BOOM TO INCREASINGLY GLOBALIZED MARKETS HEADLINEMAKING EXPANSIONS ABROAD SUCH AS THOSE OF BMW AND MERCEDESBENZ AG IN THE US MAY BE FOLLOWED BY A WAVE OF SMALLER MOVES A SURVEY OF BUSINESS EXECUTIVES IN THE MAGAZINE CAPITAL LAST MONTH INDICATED THAT 61 BELIEVED THAT WESTERN GERMAN ENTERPRISES WOULD RELOCATE PRODUCTION AND 35 SAID THEY THEMSELVES WERE ALREADY CONSIDERING IT NOT SURPRISINGLY THE END OF THE COLD WAR PLAYS A ROLE OF THE EXECUTIVES SURVEYED 34 SAID THEY MIGHT WANT TO LOCATE PLANTS IN THE CZECH REPUBLIC WHERE SKILLED LABOR CAN COST LESS THAN A QUARTER OF THAT IN WESTERN GERMANY ABOUT HALF AS MANY WERE INTERESTED IN RELOCATION TO EASTERN GERMANY WHERE WAGES AVERAGE ABOUT 70 OF THE WESTERN GERMAN LEVEL AND ARE RISING OTHER LEADING CHOICES WERE THE LOWWAGE STATES OF SLOVENIA HUNGARY AND POLAND THE US CAME IN FIFTH IF I HAD TO DECIDE TODAY SAYS HANS PETER STIHL CHAIRMAN OF AN OUTDOOREQUIPMENT COMPANY THAT BEARS HIS NAME AND PRESIDENT OF THE GERMAN ASSOCIATION OF CHAMBERS OF INDUSTRY AND COMMERCE I WOULD HAVE TO SAY THAT ADDITIONAL CAPACITY FOR HIS COMPANY WOULD NOT BE BUILT IN GERMANY WHAT IT WILL TAKE TO IMPROVE GERMAN COMPETITIVENESS IS SOMETHING BONN AND THE BUSINESS LOBBIES AGREE ON IN PRINCIPLE BUT DISAGREE ON AT TIMES VEHEMENTLY IN EMPHASIS BOTH URGE RESTRAINT IN UNIONS' WAGE DEMANDS AND SAY THAT IDEALLY TAXES SHOULD BE REDUCED TO RESTORE CRUMBLING PROFIT MARGINS CALLS BY MR STIHL'S ORGANIZATION AND OTHER INDUSTRY LOBBIES FOR REDUCTIONS IN TAXES AND SOCIAL SPENDING HAVE CAUSED CONSIDERABLE FRICTION BETWEEN BONN AND THE BUSINESSPEOPLE AND RELATIONS HAVE HIT A LOW POINT BUT THE GOVERNMENT HAS ALREADY SET HIGHER OIL TAXES AND A 75 SOLIDARITY SURCHARGE ON INCOME TAXES BEGINNING IN 1995 TO HELP PAY THE MORE THAN 90 BILLION NEEDED ANNUALLY TO SUPPORT EASTERN GERMANY HENCE BONN IS PUSHING REFORMS RANGING FROM MORE FLEXIBILITY IN THE LENGTH OF THE WORKWEEK AND MACHINE RUNNING TIME TO A SHORTENING OF THE NUMBER OF YEARS OF SCHOOLING AND THE ABOLITION OF THE WHIT MONDAY HOLIDAY TO PAY FOR OLDAGE CARE BUT IN GERMANY CHANGE DOESN'T COME EASILY INTEREST GROUPS ARE ORGANIZED INTO NATIONWIDE ORGANIZATIONS AND INDUSTRYWIDE COLLECTIVE BARGAINING BETWEEN BIG UNIONS AND EMPLOYER ASSOCIATIONS ENSURES THAT FUNDAMENTAL CHANGES IN THE WAY GERMANS WORK REQUIRE WIDE AGREEMENT TO ACHIEVE IT ALARMS ARE SOUNDED AGAIN AND AGAIN UNTIL IN EFFECT GERMANS ARE SCARED INTO MENDING THEIR WAYS YOU NEED LOTS OF CONSENSUS SAYS DAVID SOSKICE A LABOR ECONOMIST AT THE WISSENSCHAFTSZENTRUM BERLIN A SOCIALPOLICY THINK TANK YOU HAVE TO MAKE PEOPLE AWARE THAT THEY'RE FACING SERIOUS CHANGE THIS EXPLAINS WHY IN GERMANY YOU SEEM TO GET AN ALMOST ORCHESTRATED CAMPAIGN WITH SPEECHES AND ARTICLES MUCH OF THE PUSH COMES FROM SUCH INSTITUTIONS AS THE BUNDESBANK GERMANY'S CENTRAL BANK WHICH ISSUES REGULAR CALLS FOR TAX AND SPENDING REDUCTIONS MR STIHL'S CHAMBER OF COMMERCE AND THE HUGE FEDERATION OF GERMAN INDUSTRY THE FEDERATION'S LEADER TYLL NECKER HAS BECOME THE COUNTRY'S COMPETITIVENESS CASSANDRA IN WEEKLY AND SOMETIMES DAILY NEWSPAPER INTERVIEWS HE WARNS THAT THE ECONOMY WON'T REVIVE UNTIL THE COST CRUNCH ON EMPLOYERS ENDS BUT THE HEART OF THE PUSH TO JOLT GERMANS INTO CHANGING SEEMS TO LIE IN MR KOHL'S OFFICE IN BONN THE CHANCELLOR HAS ISSUED STANDING ORDERS THAT THE COMPETITIVENESS ISSUE BE WORKED INTO VIRTUALLY EVERY SPEECH THE CONCERN IS UNUSUAL FOR A POLITICIAN RENOWNED MORE FOR TACTICAL GENIUS THAN FOR STRONG OPINIONS ON MANY INTRICATE ISSUES SOME IN THE GOVERNMENT DESCRIBE GERMANY'S BUSINESS CLIMATE AND LONGTERM COMPETITIVENESS AS A KOHL OBSESSION HE IS CONVINCED THAT WE HAVE TO CHANGE CONDITIONS OR THE STANDORT DEUTSCHLAND WILL DRIVE THE BUGGY INTO THE WALL SAYS A TOP BONN OFFICIAL IN ADDITION OFFICIALS AND POLITICIANS AT THE STATE AND LOCAL LEVELS ARE GIVING SPEECHES AND WRITING OPED EXHORTATIONS ON COMPETITIVENESS THERE IS HARDLY A DAY WE DON'T HAVE A POLITICIAN IN HERE SAYS DIETER MUENKER OF AUGSBURG'S CHAMBER OF COMMERCE AND THERE HASN'T BEEN A DAY IN TWO YEARS THAT THE STANDORT ISSUE ISN'T THE CENTRAL ONE AND IN A KIND OF STANDORT MANIA THE PHRASE IS BEING APPENDED TO AN EVERGROWING NUMBER OF INITIATIVES THE ELABORATE PACKAGE FOR FINANCING RECONSTRUCTION IN EASTERN GERMANY WAS CALLED THE SOLIDARITY PACT FOR THE PROTECTION OF THE STANDORT DEUTSCHLAND OFFICIALS ACKNOWLEDGE THAT THE PACT DID LITTLE FOR COMPETITIVENESS ASIDE FROM BROADCASTING WHAT TAXES WOULD BE INTRODUCED IN 1995 BUT A LAW THAT IS TO CUT THE MAXIMUM CORPORATE TAX RATE TO 44 FROM 53 IS IN THE WORKS THOUGH THE CASHSTRAPPED GOVERNMENT HAS SEEN TO IT THAT THE REVENUE REDUCTIONS ARE OFFSET BY CHANGES IN DEPRECIATION LAW THE ECONOMICS MINISTRY WILL PRODUCE A MAMMOTH REPORT ON GERMAN COMPETITIVENESS THIS FALL AT ABOUT THE SAME TIME THE CHANCELLOR WILL CONVENE AN EDUCATION SUMMIT TO PUSH HIS PROPOSAL TO CUT PRIMARY AND SECONDARY SCHOOLING TO 12 YEARS FROM 13 TO GET PEOPLE INTO THE WORK FORCE FASTER ULTIMATELY THE CRUCIAL GROUP THAT THE GOVERNMENT HAS TO PERSUADE IS THE TRADE UNIONISTS WHOSE ACQUIESCENCE IN NEW WORK NORMS IS ESSENTIAL GERMAN UNIONS HAVE TRADITIONALLY KEPT WAGE DEMANDS IN LINE WITH PRODUCTIVITY THE EXTREMELY LOW NUMBER OF STRIKE DAYS IS SOMETHING EXECUTIVES AND UNIONISTS STILL CITE AS CRUCIAL TO GERMANY'S ECONOMIC SUCCESS BUT THIS ARRAY OF DEMANDS ARRIVES AT A DIFFICULT MOMENT FOR THE UNIONS WHICH HAVE SWALLOWED THE LAYOFFS OF NEARLY HALF A MILLION WORKERS IN THE PAST YEAR AND ARE LOSING MEMBERS A FURTHER COMPLICATION IS THE LABOR STRIFE IN EASTERN GERMANY WHERE METAL ELECTRONICS AND STEEL WORKERS ARE STRIKING TO PROTEST EMPLOYERS' CANCELLATION OF PAY RAISES THAT WERE SLATED IN 1991 BEFORE PEOPLE REALIZED THAT THE REGION'S EASTERN EUROPEAN MARKETS WERE ABOUT TO VANISH THE ABROGATION WAS UNPRECEDENTED IN POSTWAR HISTORY AND SOME UNIONISTS NOW FEAR THAT THIS IS THE FIRST STEP IN A THREAT TO COLLECTIVE BARGAINING THIS IS ABSOLUTELY ILLEGAL SAYS KARL FELDENGUT OF THE FEDERATION OF GERMAN UNIONS THIS IS THE BEGINNING OF THE END WE TRUSTED THE EMPLOYERS THE RESULT WILL BE THAT THEY TURN THE SCREW IN GOOD TIMES SHOP STEWARDS INDICATE THAT UNION MEMBERS MAY AGREE GRUDGINGLY ON INDIVIDUAL ISSUES SUCH AS ADDITIONAL SHIFTS TO INCREASE MACHINE RUNNING TIME BUT VIRTUALLY NO ONE EXPECTS THE WORKWEEK TO BE LENGTHENED SOME UNIONISTS FEAR THAT THE EMPLOYERS' ULTIMATE TARGET IS CODETERMINATION WHICH GIVES GERMAN UNIONS A VOICE IN CORPORATE POLICY THAT IN TURN WOULD ENDANGER THE GERMAN MODEL OF LABORMANAGEMENT COOPERATION IT CAN'T BE IN ANYONE'S INTEREST TO DISCARD THE MODEL MR FELDENGUT SAYS BUT WE'RE AT A FORK IN THE ROAD THE CHOICES AS PEOPLE SUCH AS HIM SEE IT ARE AN INCREASE IN LABOR STRIFE POSSIBLY MORE UNILATERAL CONTRACT ABROGATIONS AND PERHAPS AN EFFORT TO ROLL BACK CODETERMINATION OR CONTINUED COOPERATION AND FAIRLY HARMONIOUS CONDITIONS HOW THE COMPETITIVENESS ISSUE WILL PLAY OUT IS ANYONE'S GUESS AND SOME SURMISE THAT ONLY PERSISTENTLY HIGH UNEMPLOYMENT WILL CHANGE ANYONE'S MIND BUT AS BONN CRANKS UP FOR MORE CONSCIOUSNESSRAISING ITS MESSAGE MAY STILL NOT BE GETTING ACROSS THE PUBLIC AT THE MOMENT HAS THE IMPRESSION OF GREAT DISORIENTATION IN THE GOVERNMENT SAYS LUTZ HOFFMANN DIRECTOR OF BERLIN'S GERMAN INSTITUTE FOR ECONOMIC RESEARCH IN THE PERIOD WE'RE IN NOW WE'RE IN FOR SEVERE TROUBLES FOR EVERYONE 9305060107 930506 DELTA AIR LINES' APRIL TRAFFIC ATLANTA DELTA AIR LINES SAID IT FLEW 668 BILLION REVENUE PASSENGER MILES IN APRIL AN 112 INCREASE FROM 601 BILLION MILES FLOWN IN THE SAME PERIOD A YEAR AGO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE COMPANY SAID THE LOAD FACTOR FOR APRIL WAS 6174 COMPARED WITH 5684 A YEAR EARLIER FOR THE FOUR MONTHS ENDED APRIL 30 DELTA SAID IT FLEW 2496 BILLION REVENUE PASSENGER MILES UP 66 FROM THE 2341 BILLION MILES IN 1992 LOAD FACTOR OF THE LAST FOUR MONTHS WAS 587 UP FROM 5575 IN THE YEARAGO PERIOD 9305060106 930506 MANUFACTURERS' OPTIMISM ON RECOVERY STAYS HIGH NEW YORK US MANUFACTURERS REMAIN OPTIMISTIC ABOUT A STABLE RECOVERY AND EVEN EXPECT TO ADD EMPLOYEES OVER THE NEXT THREE MONTHS ACCORDING TO A DUN & BRADSTREET CORP SURVEY THE OPTIMISM LEVEL IS AT A RECORD HIGH SINCE D&B BEGAN ITS MONTHLY SURVEY OF 1000 PRODUCERS NATIONWIDE IN JANUARY 1990 DESPITE THE BLIZZARD IN MARCH AND WORRIES ABOUT THE PACE OF THE RECOVERY MANUFACTURERS' OPTIMISM REMAINS UPBEAT SAID DOUGLAS P HANDLER D&B'S MANAGER OF ECONOMETRIC ANALYSIS THE APRIL RESULTS SUGGEST THAT OUTPUT GROWTH WILL ACCELERATE BY MIDSUMMER MEANWHILE 200 CONSTRUCTION EXECUTIVES SURVEYED SEPARATELY BY DUN & BRADSTREET LAST MONTH SAID THEY ALSO ARE LOOKING FORWARD TO A BETTER SUMMER BUT THE EXPECTED IMPROVEMENT IS MOSTLY SEASONAL MR HANDLER SAID THERE IS IMPROVEMENT IN THE OFFING BUT I'M NOT SURE IT'S SUSTAINABLE HE SAID NOTING THAT CONSTRUCTION FIRMS WERE UNABLE TO PASS ALONG HIGHER PRICES TO BUYERS BUT HOPE TO DO SO IN THE COMING MONTHS D&B'S INDUSTRIAL SENTIMENT INDEX WAS AT 24 IN APRIL UNCHANGED FROM MARCH THE INDEX PROVIDES A PICTURE OF PRODUCERS' EXPECTATIONS FOR THE NEXT THREE MONTHS FOR INCREASES IN PRODUCTION NEW ORDERS UNFILLED ORDERS INVENTORY LEVELS AND EXPORTS THE INDEX SHOWS THE PERCENTAGE OF RESPONDENTS SEEING INCREASES IN INDICATORS MINUS THE PERCENTAGE SEEING DECLINES 9305060105 930506 BUFFETT FINALLY IS PAID SALOMON WAGE 1 FOR YEAR NEW YORK AT SALOMON INC'S ANNUAL SHAREHOLDERS MEETING YESTERDAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT E DENHAM PRESENTED BILLIONAIRE INVESTOR WARREN E BUFFETT WITH A ONE DOLLAR BILL ENCASED IN PLEXIGLASS WHEN MR BUFFETT TOOK THE HELM OF SALOMON IN AUGUST 1991 HE AGREED TO WORK FOR ONE DOLLAR A YEAR WE HAVE NEVER PAID HIM THAT DOLLAR AND HE HAS MENTIONED THAT A COUPLE OF TIMES SAID MR DENHAM ALTHOUGH MR BUFFETT DIDN'T DESERVE THE FULL DOLLAR BECAUSE HE WORKED FOR ONLY PART OF THE YEAR MR DENHAM SAID IN LIGHT OF OUR VIEWS OF PAYING FOR PERFORMANCE WE THINK WE SHOULD PAY HIM THE WHOLE DOLLAR A MORE SERIOUS PAYFORPERFORMANCE ISSUE CAME UP AT THE MEETING WHEN ONE HOLDER PRESSED FOR AN EXPLANATION OF THE 1992 COMPENSATION OF ANDREW J HALL AS CHAIRMAN OF SALOMON'S PHIBRO ENERGY DIVISION MR HALL EARNED ALMOST 17 MILLION IN CASH AND RESTRICTED STOCK DESPITE PHIBRO'S SECOND CONSECUTIVE ANNUAL LOSS MR DENHAM RESPONDED THAT MR HALL'S COMPENSATION WAS BASED ON A YEAR THAT RUNS FROM OCTOBER TO SEPTEMBER THUS IT IS OFTEN DIFFICULT TO DRAW EXACT COMPARISONS BETWEEN PERFORMANCE IN THE CALENDAR YEAR AND PAY MORE IMPORTANTLY HE SAID MR HALL DURING 1992 IDENTIFIED PROBLEMS IN THE BUSINESS HE WAS MANAGING AND RECOMMENDED EFFECTIVE STEPS TO DEAL WITH THEM 9305060104 930506 FINANCING BUSINESS NOWSCO WELL SERVICE LTD NOWSCO WELL SERVICE LTD CALGARY ALBERTA SAID IT AGREED TO ISSUE FOUR MILLION SPECIAL WARRANTS FOR TOTAL NET PROCEEDS OF 691 MILLION CANADIAN DOLLARS US543 MILLION THE COMPANY SAID THE WARRANTS PRICED AT C18 EACH WILL ENTITLE THE HOLDER TO ACQUIRE ONE COMMON SHARE OF NOWSCO FOR EACH WARRANT HELD WITHOUT ANY ADDITIONAL PAYMENT THE ISSUE HAS BEEN SOLD TO A GROUP OF UNDERWRITERS HEADED BY TORONTOBASED RBC DOMINION SECURITIES INC FOR RESALE TO INVESTORS NOWSCO SAID PROCEEDS WILL BE EARMARKED FOR ACQUISITION OPPORTUNITIES IN ITS CORE OIL AND GASWELL SERVICE BUSINESS IN NORTH AMERICA AT LAST REPORT NOWSCO HAD 164 MILLION COMMON SHARES OUTSTANDING YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING IT CLOSED AT 15 UP 75 CENTS 9305060103 930506 LEISURE & ARTS TV ATYPICAL SHERLOCK HOLMES THE MOTHER'S DAY MENACE BY DOROTHY RABINOWITZ THIS CHAPTER IN THE MYSTERY SERIES ABOUT SHERLOCK HOLMES PORTRAYS THE MASTER DETECTIVE IN PURSUIT OF A MASTER BLACKMAILER IT IS JEREMY BRETT'S 10TH YEAR IN THE ROLE OF HOLMES AND TO MARK THE OCCASION THE PRODUCERS HAVE STRAYED FROM THE WORKS OF SIR ARTHUR CONAN DOYLE TO DELIVER A TWOPART STORY BASED ON THE 1904 CASE OF A BLACKMAILER BY THE NAME OF CHARLES MILVERTON HOST DIANA RIGG EXPLAINS AT THE OUTSET THAT THE PRODUCERS HAVE TAKEN CERTAIN LIBERTIES WITH THE STORY TO DRAMATIZE THE DEPTHS OF MILVERTON'S VILLAINY THAT WOULD EXPLAIN NO DOUBT THE INCLUSION IN THIS VERY UPDATED TALE OF TENDERLY ROMANTIC SCENES IN HOMOSEXUAL BARS PLAYED OUT TO THE ACCOMPANIMENT OF A TRANSVESTITE TORCH SINGER MR BRETT'S HOLMES IS ALSO REQUIRED TO ENGAGE IN ANY NUMBER OF UNNATURAL ACTS INCLUDING MAKING LOVE TO A WOMAN A HOUSEMAID IN ORDER TO GET AT THE BLACKMAILER HE ACCOMPLISHES THIS FEAT WITH SOME GRACE NOTWITHSTANDING THE PSYCHOLOGICAL MURK CLOUDING THE ATMOSPHERE THERE ARE CLEAR AND HEAVY RUMBLINGS IN THE SCRIPT SUGGESTING THAT HOLMES'S COUPLING SUCH AS IT IS WITH A WOMAN HAS CONFRONTED THE DETECTIVE WITH HIS DEEPER SELF MORE WE DO NOT LEARN ABOUT HOLMES'S DEEPER SELF WHICH IS CERTAINLY A BLESSING A DECENT ENOUGH MYSTERY IF A TRIFLE OVERWROUGHT BARBARA EDEN PORTRAYS A THERAPIST SUBJECT TO HALLUCINATIONS ABOUT THE MURDER OF A PATIENT PSYCHOLOGIST JESSE NEWMAN AND HER EXHUSBAND JAMES BROLIN MOREOVER FIND THEMSELVES EMBROILED IN COUNTLESS ASSOCIATED INTRIGUES AND DANGERS MOST OF WHICH DR JESSE CAN ENVISION BEFOREHAND THANKS TO HER SPECIAL POWERS THE VIEWER WHO WATCHES THIS DOGGEDLY THROUGH TO THE END WILL DISCERN THAT THIS IS ALSO A TALE OF A LOST INFANT AND PARENTAL LOVE IN KEEPING PERHAPS WITH MOTHER'S DAY WEEKEND A MOVIE SO VIOLENT AND THAT CREAKS AS THIS ONE DOES UNDER THE WEIGHT OF ABSURDLY CONCOCTED MENACE DOESN'T OF COURSE QUITE MAKE THE GRADE AS MOTHER'S DAY FARE STILL THIS FILM WHICH BOASTS DIALOGUE THAT ONLY A SCRIPTWRITER'S MOTHER COULD LOVE MAY BE WORTH A LOOK IF ONLY FOR EDUCATIONAL REASONS IT IS FOR ONE THING A FAIRLY TYPICAL SAMPLE OF MADEFORTV FICTION AND ONE THAT SUGGESTS WHY SO MANY TV FILMS ARE BASED HOWEVER LOOSELY ON REAL EVENTS PRODUCERS UNDOUBTEDLY KNOW HOW MUCH TROUBLE THEY'D BE IN IF THEY HAD TO DEPEND ON THE GENERAL RUN OF TALENTS NOW WRITING TV SCRIPTS TO COME UP WITH PLOTS FOR THOSE WHO DON'T KNOW A MOVIE LIKE THIS COULD BE INSTRUCTIVE THIS FACTBASED FILM CONCERNS THE WOMAN ANN JILLIAN WHO CARRIED AND DELIVERED A BABY FOR HER DAUGHTER HERSELF BORN WITHOUT A UTERUS THE MENACE OF MOTHER'S DAY HAS IN SHORT STRUCK AGAIN IN THIS INSPIRATIONAL TALE WROUGHT WITH CHILDLIKE SIMPLICITY OF LOVE SELFSACRIFICE AND THE MAGIC OF IN VITRO FERTILIZATION UNLIKELY AS IT MAY SEEM AS THIS STORY UNFOLDS IN ALL ITS UNINTERESTING DETAIL IT DOES OFFER AN AFFECTING MOMENT OR TWO TOWARD THE END WHETHER THIS IS ENOUGH REWARD FOR ENDURING THE REST DEPENDS ON YOUR CAPACITY FOR SUFFERING GEOFFREY C WARD IS THE WRITER OF THIS PENETRATING TELEVISION BIOGRAPHY IT IS ALSO OF COURSE THE STORY OF A WAR AND AN ERA IN WORLD WAR I GEORGE MARSHALL GOT THE POLITICAL EDUCATION THAT WOULD SERVE HIM SO WELL IN WORLD WAR II IN HIS COMBINED ROLE OF MILITARY STRATEGIST AND POLITICAL LEADER IT WAS MARSHALL WHO DETERMINED AFTER PEARL HARBOR THAT THE GERMANS HAD TO BE DEFEATED FIRST AND WHO CONCEIVED OF THE PLANS FOR INVADING FRANCE HE WAS ALSO A MAJOR ARCHITECT OF THE EUROPEAN RECOVERY PLAN NAMED AFTER HIM THE FILM IS A HUGELY DRAMATIC CHRONICLE OF THE GENERAL'S WARTIME LEADERSHIP HIS SCARCELY KNOWN PERSONAL LIFE AND OF A POSTWAR ERA WHEN SEN JOSEPH MCCARTHY COULD ASSAIL SO EMINENT A SERVANT OF HIS COUNTRY AS A TRAITOR THIS STORY OF THE BIRTH NEAR DEATH AND ULTIMATE RESURRECTION OF A GREAT BATTLESHIP IS EXTRAORDINARILY INTERESTING IN THE QUANTITY AND KIND OF INFORMATION IT MANAGES TO SQUEEZE INTO A HALF HOUR ONE COULD ADD THAT THE BRIEF FINAL SCENE OF THE WISCONSIN'S REBIRTH IS MORE MOVING THAN THE ENTIRE DAY'S WORTH OF TREACLE AND TEARS THE NETWORKS HAVE IN STORE FOR MOTHER'S DAY 9305060102 930506 SENATE APPROVES MAKING LOBBYISTS LIST THEIR GIFTS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON YIELDING TO PUBLIC SENTIMENT FOR POLITICAL REFORM THE SENATE AGREED TO REQUIRE LOBBYISTS TO DISCLOSE FINANCIAL BENEFITS PROVIDED TO INDIVIDUAL LAWMAKERS BY VOICE VOTE SENATORS ADOPTED WITHOUT OPPOSITION AN ITEMIZED DISCLOSURE AMENDMENT BY SEN PAUL WELLSTONE D MINN TO A BROADER BILL INTENDED TO STRENGTHEN THE LAW GOVERNING REGISTRATION OF LOBBYISTS SOME OF MR WELLSTONE'S DEMOCRATIC COLLEAGUES HAD SHARPLY OPPOSED REQUIRING ITEMIZED DISCLOSURE IN A PARTY CAUCUS TUESDAY BUT THE PUBLIC OUTCRY AGAINST INFLUENCEPEDDLING THAT PRESIDENT CLINTON AND ROSS PEROT HAVE BOTH ECHOED ULTIMATELY MADE IT IMPOSSIBLE FOR SENATORS TO VOTE AGAINST IT THE POLITICAL GROUND HAS SHIFTED SAID MR WELLSTONE WHO ARGUED THAT HIS AMENDMENT WOULD FORCE PUBLIC AIRING OF SYSTEMIC CORRUPTION OF GOVERNMENT IN WASHINGTON PRESIDENT FRED WERTHEIMER WHO HAD PUSHED FOR THE ITEMIZED DISCLOSURE AMENDMENT URGED THE SENATE TO PROMPTLY PASS THE LOBBYIST DISCLOSURE BILL AND SEND IT TO THE HOUSE A FINAL VOTE IN THE SENATE COULD COME TODAY THE AMENDMENT WHICH IS DESIGNED TO FORCE DISCLOSURE OF LOBBYISTSPONSORED JUNKETS AS WELL AS INTOWN BENEFITS SUCH AS THEATER TICKETS AND FANCY MEALS WOULD REQUIRE LOBBYISTS TO LIST EACH GIFT OR FINANCIAL FAVOR VALUED AT MORE THAN 20 AND MULTIPLE GIFTS TOTALING MORE THAN 50 IN A YEAR TO INDIVIDUAL LAWMAKERS LOBBYISTS CURRENTLY DON'T HAVE TO ITEMIZE SUCH GIFTS THOUGH LAWMAKERS THEMSELVES ARE REQUIRED TO REPORT GIFTS VALUED AT MORE THAN 100 EXEMPTED UNDER MR WELLSTONE'S AMENDMENT ARE GIFTS MOTIVATED BY FAMILY RELATIONSHIPS GIFTS RETURNED PROMPTLY BY LAWMAKERS AND INVITATIONS TO WIDELY ATTENDED GATHERINGS OR RECEPTIONS SEN CARL LEVIN D MICH SPONSOR OF THE OVERALL BILL SAID HE ACCEPTED THE AMENDMENT DESPITE RESERVATIONS BECAUSE IT DOES REFLECT A DISSATISFACTION WITH THE STATUS QUO MR LEVIN MR WELLSTONE AND SEVERAL OTHER DEMOCRATS ARE SEPARATELY SEEKING TO BAN GIFTS VALUED AT MORE THAN 20 IN LINE WITH LAWS GOVERNING EXECUTIVE BRANCH EMPLOYEES ADVOCATES OF THE BAN YESTERDAY OFFERED A NONBINDING SENSE OF THE SENATE RESOLUTION TO SIGNAL THEIR INTENTIONS THE FATE OF MR WELLSTONE'S PROPOSAL IN THE HOUSE REMAINS UNCLEAR HOWEVER HOUSE SPEAKER THOMAS FOLEY DISPUTED THE BILL'S UNDERLYING PRESUMPTION THAT LOBBYISTS' GIFTS AMOUNTED TO UNDUE INFLUENCE ON MEMBERS OF CONGRESS I DON'T BELIEVE THAT'S A SERIOUS PROBLEM MR FOLEY SAID I DON'T THINK ANY MEMBER OF CONGRESS I'VE EVER SERVED WITH IS LIKELY TO BE INFLUENCED BY BEING TAKEN TO LUNCH 9305060101 930506 TECHNOLOGY & HEALTH NATIONAL STANDARDS TO COMPARE HMOS RELATED HEALTH PLANS ARE SET BY GROUP BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A GROUP REPRESENTING HEALTHCARE PURCHASERS AND PROVIDERS DEVELOPED THE FIRST NATIONAL STANDARDS FOR COMPARING THE QUALITY AND PERFORMANCE OF HEALTH MAINTENANCE ORGANIZATIONS AND SIMILAR HEALTH PLANS THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE BASED IN WASHINGTON IS RELEASING TODAY A LIST OF MORE THAN 60 QUALITY AND FINANCIAL INDICATORS THAT EMPLOYERS ARE EXPECTED TO USE TO EVALUATE AND SELECT HEALTH PLANS FOR THEIR EMPLOYEES AND TO HOLD THEM ACCOUNTABLE FOR THEIR PERFORMANCE THE HEALTH ORGANIZATIONS THEMSELVES WILL USE THE MEASURES TO TRACK AND IMPROVE THEIR PERFORMANCE EVERYONE IN THE INDUSTRY MEASURES QUALITY AND PERFORMANCE DIFFERENTLY SAYS ALLEN SCHAFFER VICE PRESIDENT PROFESSIONAL AFFAIRS AT AETNA LIFE & CASUALTY CO'S AETNA HEALTH PLANS UNIT FOR THE FIRST TIME WE HAVE AGREED ON A STANDARD REPORTING SYSTEM FOR MANAGED CARE THE INITIATIVE THE RESULT OF A COLLABORATION BETWEEN A GROUP OF MAJOR EMPLOYERS AND LARGE HEALTH PLANS REFLECTS BURGEONING EFFORTS AT NATIONAL STATE AND COMMUNITY LEVELS TO PROVIDE INFORMATION THAT WILL ENABLE BOTH LARGE PURCHASERS AND INDIVIDUAL CONSUMERS TO SHOP INTELLIGENTLY FOR HEALTH CARE WHILE THESE INITIATIVES ARE DRIVEN MOSTLY BY COSTCONTAINMENT EFFORTS AMONG EMPLOYERS THEY PROVIDE THE KIND OF INFORMATION THAT LARGE HEALTH PURCHASING COOPERATIVES AND THEIR MEMBERS WOULD NEED UNDER THE HEALTHREFORM PLAN THE CLINTON ADMINISTRATION IS EXPECTED TO PROPOSE LATER THIS MONTH THIS IS GOING TO BE THE CORE OF ASSURING THAT HEALTH PLANS ARE ACCOUNTABLE AND ACHIEVE WHAT WE EXPECT THEM TO ACHIEVE UNDER MANAGED COMPETITION SAID KATHLEEN ANGEL LIFE AND HEALTH BENEFITS MANAGER AT DIGITAL EQUIPMENT CORP WHO HELPED DRAW UP THE PERFORMANCE MEASURES EVERYBODY WANTS HEALTH PLANS TO BE ACCOUNTABLE SAYS STEVE UDVARHELYI VICE PRESIDENT MEDICAL SERVICES AT PRUDENTIAL INSURANCE CO OF AMERICA IN ORDER TO BE ACCOUNTABLE YOU NEED INFORMATION THE NEW STANDARDS BEING RELEASED TODAY WOULD ENABLE EMPLOYERS TO COMPARE HEALTH PLANS ON SUCH QUALITY MEASURES AS RATE OF CHILDHOOD IMMUNIZATIONS HOSPITAL READMISSION RATES FOR SUBSTANCE ABUSE TREATMENT AND COMPLIANCE WITH MEDICATION GUIDELINES FOLLOWING A HEART ATTACK THEY ALSO INCLUDE WAYS TO MEASURE ACCESS TO HEALTH SERVICES PATIENT SATISFACTION AND FINANCIAL STABILITY THIS WILL GIVE ANSWERS TO KEY QUESTIONS THAT A LOT OF FOLKS HAVE ABOUT HEALTH PLANS' SAID JANET CORRIGAN VICE PRESIDENT PLANNING AND DEVELOPMENT AT THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE THE STANDARDS ARE ACCOMPANIED BY GUIDELINES FOR DEFINING QUALITY MEASURES AND GATHERING THE REQUIRED INFORMATION IN AN EFFORT TO MAKE SURE THE DATA ARE COMPARABLE AS WELL AS INFORMATION ABOUT THE LIMITATIONS OF THE DATA DEFINITIONS OF SUCH CATEGORIES AS PREMATURE BABIES OR RATE OF PREVENTIVE MAMMOGRAPHY TESTS VARY WIDELY AMONG PLANS EXPERTS SAY AND WITHOUT REACHING AGREEMENT ON STANDARD DEFINITIONS MANY COMPARISONS WOULD BE MEANINGLESS WHILE ONLY A HANDFUL OF EMPLOYERS AND HEALTH PLANS DEVELOPED THE STANDARDS THEY ARE LIKELY TO HAVE WIDE IMPACT THE COMMITTEE IS SOLICITING COMMENT ON THE STANDARDS FROM PURCHASERS PROVIDERS AND PROFESSIONAL GROUPS OVER THE NEXT FEW WEEKS BEFORE FINALIZING THEM MOREOVER THE COMPANIES INVOLVED ALREADY HAVE SIGNIFICANT CLOUT IN THE HMO MARKET XEROX CORP FOR INSTANCE ONE OF THE MAJOR PARTICIPANTS NEGOTIATES CONTRACTS WITH MORE THAN 180 HEALTH PLANS ABOUT ONETHIRD OF THE NATION'S HMOS THIS IS SOMETHING HEALTH PLANS ARE GOING TO HAVE TO GEAR UP FOR AND RESPOND TO SAYS DON NIELSEN QUALITY CONSULTANT FOR PERMANTE MEDICAL GROUPS A UNIT OF KAISER PERMANENTE THE BIG OAKLAND CALIF HMO BUT IN ADDITION TO SUCH PRESSURE HEALTH PLANS ALSO EXPECT TO BENEFIT FROM THE PROJECT THEY MUST CURRENTLY PROVIDE DIFFERENT KINDS OF DATA FOR EVERY CUSTOMER THEY CONTRACT WITH AND THE NEW STANDARDS IF USED WIDELY BY EMPLOYERS WOULD REDUCE THAT BURDEN THE STANDARDS WOULD ALSO GIVE HMOS A TRUER PICTURE OF HOW THEY STACK UP AGAINST COMPETITORS ENABLING THEM TO TAKE STEPS TO IMPROVE THEIR PERFORMANCE DIGITAL'S MS ANGEL SAYS HER COMPANY WILL ASK ITS HEALTH PLANS BASED ON COMPARATIVE DATA TO TAKE STEPS TO MATCH THE BESTPERFORMING HMO IN THEIR RESPECTIVE MARKETING AREAS 9305060100 930506 TECHNOLOGY & HEALTH ONE US FAMILY GRAPPLES WITH THE HARSH NEWS WOMAN FINDS OUT TOO LATE SHE INHERITED THE DISEASE BUT 2 SISTERS HAVE HOPE BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL FOR DENISE WEAVER A 26YEAROLD MEETING PLANNER THE DISCOVERY OF AN INHERITED CAUSE OF COLON CANCER COMES JUST A FEW MONTHS TOO LATE BUT IT COULD CHANGE THE LIFE OF HER TWO SISTERS AND SEVERAL COUSINS TWO MONTHS AGO A CANCEROUS TUMOR WAS FOUND DEEP INSIDE MS WEAVER'S COLON AFTER HER MOTHER INSISTED SHE UNDERGO A DIAGNOSTIC IMAGING TEST THE REASON FOR HER MOTHER'S PRESCIENT WORRY WAS SIMPLE TWO YEARS AGO MS WEAVER'S FATHER DIED AT AGE 50 OF THE DISEASE A YEAR BEFORE THAT HER FATHER'S SISTER WAS FATALLY STRUCK DOWN BY CANCER AT AGE 46 AND EARLIER THIS YEAR HER FATHER'S BROTHER WAS DIAGNOSED WITH THE DISEASE TOO THERE WAS NO WAY TO IGNORE IT SOMETHING WAS GOING ON SAYS MS WEAVER IN A TELEPHONE INTERVIEW FROM HER OFFICE NEAR WASHINGTON FOR YEARS THE FAMILY WHICH LIVES IN ROCKVILLE MD HAD DISMISSED THE IDEA THAT THEY WERE INHERITING CANCER EVEN THOUGH MS WEAVER'S GRANDFATHER HER FATHER'S FATHER AND ALL FIVE OF HIS SIBLINGS HAD DIED OF WHAT HAD LONG BEEN DESCRIBED AS STOMACH CANCER MS WEAVER WAS DIRECTED BY A COLLEAGUE TO A CANCER SPECIALIST AT JOHNS HOPKINS UNIVERSITY SCHOOL OF MEDICINE WHERE DOCTORS WERE UNDER ORDERS TO KEEP ALERT FOR COLON CANCER PATIENTS WITH AN UNUSUAL FAMILY HISTORY OF THE DISEASE THAT'S BECAUSE BERT VOGELSTEIN A RESEARCHER AT THE UNIVERSITY HAD JUST HELPED DISCOVER A GENE THOUGHT TO CAUSE AN INHERITED FORM OF THE DISEASE WHEN THE HOPKINS DOCTORS TESTED MS WEAVER'S BLOOD THEY FOUND THAT INDEED SHE HAD INHERITED THE NEWLY DISCOVERED GENE TO PREVENT RECURRENCE OF THE DISEASE THE DOCTORS REMOVED MS WEAVER'S ENTIRE COLON SURPRISINGLY UPBEAT MS WEAVER SAYS SHE IS HANDLING HER CANCER WELL SURGEONS WERE ABLE TO ATTACH HER UPPER INTESTINE DIRECTLY TO HER BOWEL IN MANY CASES PATIENTS MUST USE AN EXTERNAL BAG THAT FUNCTIONS AS AN ARTIFICIAL BOWEL BUT NEWS THAT SHE CARRIES THE CANCER GENE HAS SCARED HER MOTHER TWO SISTERS AND THE ADULT OFFSPRING OF HER AUNT AND UNCLE RIGHT NOW EVERYONE IS VERY ANXIOUS WAITING TO GET TESTED FOR THE GENE MS WEAVER SAYS YOU CAN'T IMAGINE HOW DEVASTATED WE ARE BY WHAT'S HAPPENED IN RECENT YEARS NOW MY MOTHER IS WORRIED THAT MY TWO SISTERS ALSO HAVE GOTTEN THE GENE ON THE OTHER HAND WHOEVER DOESN'T HAVE THE GENE WON'T HAVE TO WORRY ANYMORE RESEARCHERS SAY TENS OF THOUSANDS OF PEOPLE IN HIGHRISK FAMILIES WILL SOON BE ABLE TO TELL IF THEY CARRY THE GENE OR NOT THE TEST IS AN ALMOST UNBELIEVABLE DEVELOPMENT SAYS BERNARD LEVIN WHO TREATS COLON CANCER PATIENTS AT MD ANDERSON HOSPITAL IN HOUSTON DR LEVIN SAYS PEOPLE IDENTIFIED WITH THE GENE WILL BE MONITORED TO CATCH A TUMOR BEFORE IT SPREADS THERE IS MUCH HOPE WE'LL BE ABLE TO FIGURE OUT WAYS TO KEEP THE CANCER FROM DEVELOPING IN THE FIRST PLACE 9305060099 930506 BUSINESS BRIEF MR GASKET CO CONCERN SELLS UNIT EMERGES FROM CHAPTER 11 PROTECTION MR GASKET CO SAID IT COMPLETED THE SALE OF ITS PERFORMANCE GROUP UNIT AND EMERGED FROM CHAPTER 11 BANKRUPTCYCOURT PROTECTION THE CLEVELANDBASED AUTOMOTIVE PRODUCTS MAKER SAID IT SOLD THE PERFORMANCE GROUP UNIT FOR 35 MILLION IN CASH PLUS THE ASSUMPTION OF CERTAIN LIABILITIES ESTIMATED AT 15 MILLION TO EICHLIN INC A BRANFORD CONN CONCERN THAT ALSO MAKES AUTOMOTIVE PARTS MR GASKET WHICH HAD FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION IN APRIL 1991 SAID IT IS RENAMING ITSELF PERFORMANCE INDUSTRIES INC AND IS MOVING ITS HEADQUARTERS TO TEMPE ARIZ WHERE THE COMPANY'S EXHAUST GROUP HAS HAD MARKETING AND WAREHOUSE OPERATIONS PERFORMANCE INDUSTRIES WILL MANUFACTURE AND DISTRIBUTE EXHAUST PRODUCTS THE COMPANY SAID IT EXPECTS TO HAVE ABOUT 20 MILLION IN ASSETS AND 1993 SALES OF OVER 20 MILLION 9305060097 930506 LETTERS TO THE EDITOR AMERICA'S GREATEST GIFT TO JAPAN CHEAP DOLLAR PAUL GIGOT IS MORE CORRECT THAN EVEN HE HIMSELF MAY REALIZE WHEN HE POINTS OUT THAT THE JAPANESE ARE FOR THE MOST PART DELIGHTED WHEN THE US DEVALUES ITS CURRENCY AGAINST THE YEN IN ADDITION TO THE REASONS CITED IN HIS APRIL 16 POTOMAC WATCH COLUMN THE IMPETUS DEVALUATION PLACES ON EFFICIENCY IN JAPANESE BUSINESSES AND A DIVERSION OF ATTENTION THAT ALLOWS THOSE BUSINESSES TO AVOID ACCOUNTABILITY FOR CARTEL AND MERCANTILIST PRACTICES THERE IS ANOTHER MORE COMPELLING REALITY THAT MAKES DEVALUATION ABSOLUTELY BENEFICIAL TO THEIR ECONOMY IT HAS TO DO WITH THE PRICE OF OIL THE WORLD'S NATIONS BUY OIL WITH DOLLARS JAPAN IMPORTS ALL OF ITS OIL BY DEVALUING THE DOLLAR AGAINST THE YEN WE HAVE MORE THAN HALVED THE PRICE OF OIL IN JAPAN SINCE 1985 AS COMPARED WITH ITS PRICE IN THE US DURING A 1989 VISIT TO JAPAN I MENTIONED THIS PHENOMENON TO MAKATO KURODA FORMER VICE MINISTER OF MITI HIS COMMENT WAS ESSENTIALLY THAT THE JAPANESE WOULD NEVER UNDERSTAND WHY THE US ALLOWED DEVALUATION TO GO SO FAR THE YEN WAS 125 TO THE DOLLAR AT THE TIME ROUGHLY HALF OF ITS 1985 LEVEL MR KURODA COMMENTED THAT IN 1981 JAPAN HAD SPENT 5 OF ITS GDP FOR OIL BUT THAT BY 1988 IT WAS SPENDING ONLY A LITTLE MORE THAN 1 YOU HAVE GIVEN US BILLIONS TO INVEST HE COMMENTED HOW CAN YOU COMPLAIN WHEN WE USE THE MONEY THOSE WONDERING WHERE THE INVESTMENT FUNDS HAVE GONE SHOULD EXAMINE A CHART SHOWING JAPANESE INVESTMENT IN ASIA BEGINNING IN 1985 THE INCREASE IN THE GRAPH IS LARGELY THE RESULT OF AMERICA'S DEVALUATION WITH A STRONGER DOLLAR AND A PROPER STRATEGY MANY OF THOSE INVESTMENTS COULD HAVE BEEN AMERICAN ALL THE RESULT OF A DEVALUATION THAT UNLIKE IN OTHER PARTS OF THE WORLD CAN NEVER TRULY AFFECT TRADE BALANCES BECAUSE OUR TWO COUNTRIES DO NOT COMPETE FOR TRADE IN COMPARABLE GOODS ANYWAY 9305060096 930506 WEDNESDAY'S MARKETS STOCK PRICES AND DOLLAR POST GAINS LITTLE IMPACT NOTED FROM TREASURY PLAN FED ECONOMIC REPORT BY STEVEN E LENINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES ROSE AS INVESTORS PILED INTO DRUG AND HEALTHCARE ISSUES THE DOLLAR ALSO GAINED GROUND THE DOW JONES INDUSTRIAL AVERAGE ROSE 291 POINTS TO 344910 STANDARD & POOR'S 500STOCK INDEX INCHED UP 047 TO 44452 AND THE NASDAQ COMPOSITE INDEX JUMPED 510 TO 68326 ANALYSTS SAID THE TREASURY'S REFUNDING PLANS HAD LITTLE IMPACT ON THE BROAD STOCK MARKET BUT THE RESULTING INCREASE IN SHORTTERM INTEREST RATES AND THE FALL IN LONGTERM RATES TOOK THE WIND OUT OF BANK STOCKS WHICH HAVE PROFITED ON THE WIDE GAP BETWEEN SHORT AND LONGTERM RATES THE FEDERAL RESERVE'S BEIGE BOOK REPORT SHOWED MODEST ECONOMIC IMPROVEMENT BUT ANALYSTS SAID INVESTORS REMAIN CONCERNED ABOUT THE ECONOMY AND OFFSET THEIR WORRIES BY BUYING CONSUMER GROWTH STOCKS THE ECONOMICALLY SENSITIVE STOCKS THAT HAVE BEEN STRONG HAVE RUN OUT OF STEAM SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO THERE'S A SHIFT BACK INTO SOME CONSUMER NONDURABLES LED BY DRUGS BIOTECHNOLOGY AND HEALTH CARE MORGAN STANLEY'S CONSUMER STOCK INDEX HAS STRONGLY OUTPACED ITS CYCLICAL STOCK INDEX IN RECENT DAYS SINCE APRIL 26 THE CONSUMER INDEX HAS CLIMBED 35 WHILE THE CYCLICAL INDEX IS UP JUST 18 INVESTORS ALSO VENTED THEIR ECONOMIC CONCERNS YESTERDAY BY DUMPING AIRLINE STOCKS AND DRIVING THE DOW JONES TRANSPORTATION INDEX DOWN 1733 POINTS TO 157571 DELTA AIR LINES SLID 1 3/8 OR 23 TO 58 1/4 AND UAL PARENT OF UNITED AIRLINES FELL 2 3/4 OR 2 TO 133 1/2 AS THE OUTLOOK ON THE ECONOMY WEAKENS IT HURTS THE AIRLINES SAID LARRY RICE CHIEF MARKET STRATEGIST AT JOSEPHTHAL LYON & ROSS OVERTHECOUNTER STOCKS CONTINUED TO LEAD THE MARKET AS INVESTORS WENT SHOPPING FOR BARGAINS AMONG BATTERED ISSUES IN THE NASDAQ COMPOSITE INDEX WE'RE SEEING A ROTATION INTO THE MORE DEPRESSED OVERTHECOUNTER STOCKS MR RICE SAID ANALYSTS EMPHASIZED THAT THE LOWINFLATION LOWINTERESTRATE ENVIRONMENT CONTINUES TO SUPPORT THE STOCK MARKET WE STILL HAVE A LOT OF MONEY COMING INTO MUTUAL FUNDS AND THAT HAS TO BE INVESTED MR RICE SAID THAT MUTES ANY POTENTIAL SELLOFF IN STOCKS IN THE NEAR TERM WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 007 TO 10618 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 271 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1116 ISSUES ROSE AND 788 FELL THE DOLLAR ADVANCED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15805 MARKS AND 11045 YEN COMPARED WITH 15758 MARKS AND 11025 YEN TUESDAY 9305060095 930506 DEMOCRAT WINS ASPIN SEAT BUT MARGIN IS RAZOR THIN WASHINGTON PRESIDENT CLINTON AVERTED POLITICAL EMBARRASSMENT WITH THE APPARENT DEMOCRATIC VICTORY IN A SPECIAL ELECTION FOR A WISCONSIN US HOUSE SEAT DEMOCRATIC STATE LEGISLATOR PETER BARCA APPEARED TO HAVE DEFEATED REPUBLICAN DEVELOPER MARK NEUMANN BY A RAZORTHIN MARGIN OF FEWER THAN 800 VOTES FOR THE SEAT LES ASPIN GAVE UP TO BECOME MR CLINTON'S DEFENSE SECRETARY MR NEUMANN CAMPAIGNED HARD AGAINST THE PRESIDENT'S PROPOSED TAX INCREASES AND AS MR CLINTON'S POLITICAL FORTUNES EBBED IN RECENT WEEKS THE GOP INCREASINGLY SOUGHT TO TURN THE RACE INTO A REFERENDUM ON THE ADMINISTRATION MR NEUMANN SAID HE WOULD PROBABLY SEEK A RECOUNT RELIEVED WHITE HOUSE OFFICIALS SAID THE APPARENT WISCONSIN RESULT COUPLED WITH AN EARLIER DEMOCRATIC VICTORY IN A SPECIAL ELECTION FOR A MISSISSIPPI US HOUSE SEAT MEANT THAT REPUBLICANS HAD FAILED IN TWO MAJOR EFFORTS TO EMBARRASS MR CLINTON IN CLOSELY CONTESTED RACES THERE WAS A REFERENDUM AND CLINTON WON IT SAID A SENIOR WHITE HOUSE AIDE NEXT MONTH IN TEXAS DEMOCRATIC SEN BOB KRUEGER IS AN UNDERDOG IN A FIGHT WITH REPUBLICAN STATE TREASURER KAY BAILEY HUTCHISON TO CLAIM THE SENATE SEAT VACATED BY TREASURY SECRETARY LLOYD BENTSEN 9305060094 930506 DUPONT PLANS TO CUT AS MANY AS 300 JOBS OF MIDDLE MANAGERS WILMINGTON DEL DUPONT CO SAID IT WILL SHED HUNDREDS OF MIDDLEMANAGEMENT JOBS THROUGH AN ORGANIZATIONAL RESTRUCTURING OF ITS CHEMICAL AND SPECIALTY OPERATION THE CHEMICAL CONCERN SAID THE STREAMLINING WILL ELIMINATE LAYERS BETWEEN TOP EXECUTIVES AND ITS 23 STRATEGIC BUSINESS UNITS THE PROGRAM DOESN'T AFFECT DUPONT'S CONOCO UNIT THE LATEST ACTION WILL BE IN ADDITION TO A MOSTLY COMPLETED MID1991 PROGRAM BUT CALLS FOR A SIGNIFICANTLY SMALLER STAFF REDUCTION DUPONT AS A RESULT OF THAT PROGRAM TOOK A 350 MILLION CHARGE TO TRIM FIXED COSTS AND FLATTEN ITS CORPORATE STRUCTURE BY CUTTING SEVERAL THOUSAND JOBS THE CHEMICAL BUSINESS IS STRUCTURED SO THAT THE BUSINESS UNITS EACH REPORT TO ONE OF SIX BUSINESS SECTOR ORGANIZATIONS EACH OF THE SECTOR ORGANIZATIONS IS HEADED BY A DUPONT SENIOR VICE PRESIDENT AND HAS ITS OWN STAFF FOR PROVIDING THE UNITS WITH RESEARCH HUMANRESOURCES AND SIMILAR SERVICES UNDER THE DUPONT RESTRUCTURING THOSE SIX SECTORS WILL BE ELIMINATED EFFECTIVE JUNE 1 AND THE SEPARATE BUSINESS UNITS WILL DRAW NEEDED PERSONNEL FROM THE POOL OF THOSE ORGANIZATIONS' STAFFERS DUPONT SAID IT EXPECTS THERE WILL BE POSSIBLY 200 TO 300 JOBS CUT AS A RESULT OF THE RESTRUCTURING DUPONT SAID IT DOESN'T ANTICIPATE A CHARGE TO EARNINGS AS A RESULT OF THE MOVE 9305060093 930506 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT PHILADELPHIA ELECTRIC CO 250 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE MAY 1 2023 WON BY DEALERS LED BY GOLDMAN SACHS & CO NONCALLABLE FOR FIVE YEARS THE ISSUE WILL BE REOFFERED AS 7 3/4S AT 99304 TO YIELD 781 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WAS PRICED AT A SPREAD OF ONE PERCENTAGE POINT ABOVE THE 30YEAR TREASURY BOND THE ISSUE IS RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP PHILADELPHIA ELECTRIC CO 200 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE MAY 1 2003 WON BY DEALERS LED BY GOLDMAN SACH & CO THE NONCALLABLE ISSUE WILL BE REOFFERED AS 6 1/2S AT 9960 TO YIELD 6555 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WAS PRICED AT A SPREAD OF 064 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P US LEASING CORP 150 MILLION OF NOTES DUE MAY 15 2003 PRICED AS 6 5/8S AT 99314 TO YIELD 672 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 079 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC US LEASING IS A UNIT OF US LEASING INTERNATIONAL ARIZONA 1874 MILLION TRANSPORTATION BOARD HIGHWAY REVENUE REFUNDING BONDS SERIES 1993 PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP TO YIELD FROM 26 IN 1994 TO 553 IN 2009 THE BONDS ARE RATED DOUBLEA BY MOODY'S AND TRIPLEA BY S&P COUNTY OF HAWAII 867 MILLION GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS SERIES 1993 A PRICED BY DEAN WITTER REYNOLDS INC THE BONDS ARE FGICINSURED AND RATED TRIPLEA BY BOTH MOODY'S AND S&P THE BONDS ARE PRICED AT PAR TO YIELD FROM 34 IN 1994 TO 56 IN 2011 THROUGH 2013 DALLASFT WORTH 2055 MILLION REGIONAL AIRPORT JOINT REVENUE REFUNDING BONDS SERIES 1993 PRICED BY A BEAR STEARNS & CO GROUP TO YIELD FROM 23 IN 1993 TO 51 IN 2002 THE BONDS ARE MBIAINSURED AND RATED TRIPLEA BY BOTH MOODY'S AND S&P DORMITORY AUTHORITY OF THE STATE OF NEW YORK 73355 MILLION UNIVERSITY EDUCATIONAL FACITILIES REVENUE BONDS SERIES 1993A PRICED BY A MERRILL LYNCH & CO GROUP TO YIELD FROM 32 IN 1994 TO 593 IN 2017 2019 AND 2021 THE BONDS ARE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P ILLINOIS EDUCATIONAL FACILITIES AUTHORITY 789 MILLION NORTHWESTERN UNIVERSITY REFUNDING BONDS PRICED BY FIRST CHICAGO CAPITAL MARKETS INC TO YIELD FROM 3 IN 1994 TO 59 IN 2021 SERIAL BONDS YIELD FROM 3 IN 1994 TO 57 IN 2009 THERE ARE 12775 MILLION TERM BONDS DUE 2013 PRICED AS 55S TO YIELD 575 AND 391 MILLION TERM BONDS DUE 2021 PRICED AS 5375S TO YIELD 59 THE BONDS ARE RATED DOUBLEA BY MOODY'S AND DOUBLEAMINUS BY S&P INTERMOUNTAIN POWER AGENCY UTAH 1989 MILLION POWER SUPPLY REVENUE REFUNDING BONDS 1993 SERIES B PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELD FROM 28 IN 1994 TO 579 IN 2017 THE BONDS ARE RATED DOUBLEA BY BOTH MOODY'S AND S&P VIRGINIA PUBLIC SCHOOL AUTHORITY 25031 MILLION SCHOOL FINANCING BONDS 1987 RESOLUTION 1993 REFUNDING SERIES B BONDS PRICED BY A MORGAN STANLEY & CO GROUP TO YIELD FROM 245 IN 1994 TO 558 IN 2010 AND 2011 THE BONDS ARE RATED DOUBLEA BY BOTH MOODY'S AND S&P NORTH AMERICAN MORTGAGE CO 2 MILLION COMMON SHARES PRICED AT 23625 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 5001 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES GOLD 1535 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 775 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS COUNCIL OF EUROPE RESETTLEMENT FUND SUPRANATIONAL 16 BILLION FRENCH FRANCS OF 7 1/4 EUROBONDS DUE SEPT 14 2000 AT ISSUE AND REOFFER PRICE 9989 VIA BANQUE SG WARBURG SA YIELD AT REOFFER 726 ANNUAL SPREAD 35 BASIS POINTS ABOVE FRENCH TREASURY'S 8 1/2 NOTE DUE 2000 FEES 03 POINT DEPARTEMENT DE SEINE ET MARNE FRANCE 65 MILLION SWISS FRANCS OF 5 PUBLIC BONDS PRICED AT 10280 DUE JUNE 23 2003 VIA SWISS BANK CORP FEES 2375 POINTS DEUTSCHE AUSGLEICHS BANK GERMANY 200 MILLION SWISS FRANCS OF 4 3/4 PUBLIC BONDS DUE JUNE 11 2003 PRICED AT 101 1/4 VIA BANCO DEL GOTTARDO FEES 2375 POINTS DEUTSCHE BANK FINANCE NV CURACAO GERMANY PARENT 200 BILLION ITALIAN LIRE OF 10 3/8 EUROBONDS DUE JUNE 2 1998 AT ISSUE PRICE 101469 VIA BANCA D'AMERICA ET D'ITALIA A DEUTSCHE BANK AG SUBSIDIARY YIELD 1048 ANNUAL AT BREAKEVEN PRICE FOR UNDERWRITERS GUARANTOR DEUTSCHE BANK AG FEES 1875 POINTS EUROPAEISCHE HYPOTHEKENBANK SA GERMANY 175 MILLION MARKS OF FIXED/REVERSECOUPON FLOATING RATE EURONOTES DUE MAY 28 2003 VIA DEUTSCHE BANK AG NOTES PAY INTEREST AT 7 3/4 ANNUAL IN FIRST TWO YEARS THEREAFTER INTEREST FLOATS AT 12 5/8 MINUS SIXMONTH LONDON INTERBANK OFFERED RATE FOR MARKS ISSUE PRICE 10095 FEES 145 POINTS FINANCE FOR DANISH INDUSTRY AS DENMARK 100 MILLION OF FLOATING RATE EURONOTES DUE MAY 18 1994 VIA LEHMAN BROTHERS INTERNATIONAL LTD OFFERED AS PART OF BORROWER'S 1 BILLION EURO MEDIUM TERM NOTE PROGRAM INTEREST PAID QUARTERLY AT THREEMONTH LIBOR FOR US DOLLARS ISSUE PRICE 1001 FEES 01 POINT GENERAL ELECTRIC CAPITAL CORP US 100 MILLION OF 7 1/2 EUROBONDS DUE DEC 1 1998 AT ISSUE PRICE 101048 VIA GOLDMAN SACHS INTERNATIONAL LTD AND BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 99448 TO YIELD 7611 ANNUAL SPREAD 44 1/2 BASIS POINTS ABOVE 7 1/4 GILT DUE MARCH 1998 FEES 1875 POINTS KINGDOM OF DENMARK SOVEREIGN 250 MILLION SWISS FRANCS OF 4 1/2 PRIVATELY PLACED NOTES DUE JUNE 9 1997 PRICED AT 1013 VIA UNION BANK OF SWITZERLAND FEES 1375 POINTS SAINTGOBAIN NETHERLANDS BV FRANCE 1 BILLION FRENCH FRANCS OF 7 1/2 EUROBONDS DUE JUNE 16 2000 AT ISSUE PRICE 101313 VIA BANQUE NATIONALE DE PARIS REOFFERED AT 99788 TO YIELD 754 SPREAD 60 BASIS POINTS ABOVE FRENCH TREASURY'S 8 1/2 NOTE DUE MARCH 2000 GUARANTOR CIE DE SAINTGOBAIN SA FEES 1875 POINTS WESTLB FINANCE CURACAO NV GERMANY PARENT 150 MILLION OF 8 1/2 SUBORDINATED EUROBONDS DUE JUNE 2 2003 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 99786 TO YIELD 853 ANNUAL SPREAD 32 BASIS POINTS ABOVE 10 GILT DUE 2003 GUARANTOR WESTDEUTSCHE LANDESBANK GIROZENTRALE FEES TWO POINTS 9305060092 930506 FINANCING BUSINESS DELTA AIR LINES DELTA AIR LINES ATLANTA SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 500 MILLION OF SUBORDINATED NOTES THE AIRLINE SAID GOLDMAN SACHS & CO WILL BE AN UNDERWRITER OF THE OFFERING DELTA SAID NET PROCEEDS WILL BE ADDED TO WORKING CAPITAL AND USED FOR GENERAL CORPORATE PURPOSES INCLUDING PAYMENT OF BORROWINGS UNDER BANK CREDIT AGREEMENTS 9305060091 930506 LETTERS TO THE EDITOR VISTA INVESTING IN AMERICA'S FUTURE YOUR DEPICTION OF AMERICA'S ONLY NATIONAL SERVICE PROGRAM VISTA RELIES ONLY ON JOSHUA GILDER'S SURREAL MEMORIES OF VISTA VOLUNTEERS AS KGBLIKE AGENTS IN SCARSDALE NY NATIONAL SERVICE AND FIDEL'S SUGAR CANE EDITORIAL PAGE MARCH 25 AS A FORMER VISTA VOLUNTEER VERMONT 198990 CURRENT VISTA RECRUITER AND DOW JONES COLLEGE SCHOLARSHIP RECIPIENT I CAN PRESENT A MORE LUCID ACCOUNT TODAY VOLUNTEERS ARE RECRUITING ROLE MODELS FOR ATRISK YOUTH IN LOS ANGELES SECURING MATERIALS TO REBUILD SOUTH MIAMI AND RAISING CAPITAL FOR AN ALZHEIMER'S CENTER IN BOSTON THERE ARE 3500 VISTA CHAPTERS INVOLVED IN POVERTY PROGRAMS THAT MAKE BETTER USE OF THE EXISTING RESOURCES WHEN THE COMMUNITY PROJECT BECOMES SELFSUFFICIENT VISTA IS PHASED OUT IN VERMONT I COORDINATED COMMUNITY VOLUNTEERS WITH A PROGRAM THAT REDUCED THE RECIDIVISM OF FORMER PRISONERS CREATING A SAFER COMMUNITY LESSENING PRISON OVERCROWDING AND INDIRECTLY LOWERING THE LOCAL TAX BURDEN I'M PROUD TO BE AMONG THE MORE THAN 100000 AMERICANS WHO HAVE PERFORMED NATIONAL SERVICE WITH VISTA IT'S AN EXCELLENT OPPORTUNITY FOR THOSE WHO WISH TO INVEST THEMSELVES IN AMERICA'S FUTURE 9305060090 930506 ENTERPRISE FOCUS ON FRANCHISING BETTING ON A REBOUND FRANCHISERS STEP UP HIRING PLANS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL DEMAND BOUNCES BACK FOR FRANCHISE MANAGERS AFTER A SLUMP FRANCHISERS ARE GAMBLING THAT THE SLUGGISH ECONOMY WILL GET STRONGER RECRUITERS SAY DOUGLAS T KUSHELL PRESIDENT OF FRANCHISE SEARCH INC GLEN COVE NY SAYS HE IS SEEING A 25 TO 30 INCREASE THIS YEAR IN PLACEMENTS DEMAND FOR MIDDLE MANAGERS HAS REBOUNDED THOUGH HIRING OF SENIOR EXECUTIVES REMAINS TIGHT HE SAYS JERRY C WILKERSON PRESIDENT OF FRANCHISE RECRUITERS LTD IN CRETE ILL SAYS THE MARKET IS A LOT BETTER FOR JOB SEEKERS THIS YEAR ESPECIALLY FOR SALES AND OPERATING POSITIONS COLDWELL BANKER RESIDENTIAL AFFILIATES INC A FRANCHISING UNIT OF SEARS ROEBUCK & CO EXPECTS TO ADD FIVE OR SIX MANAGERS THIS YEAR TO HELP FRANCHISEES COLDWELL ALSO SAYS THE NUMBER OF FRANCHISE SALESPEOPLE SHOULD REACH 30 BY YEAR END UP FROM 20 IN JANUARY 1992 SALARIES ARE IMPROVING TOO LOIS V MARSHALL PRESIDENT OF MARSHALL GROUP RECRUITING CORP SALINAS CALIF SAYS FRANCHISERS ARE FILLING OPENINGS THIS YEAR FOR 10 TO 12 MORE PAY BUT MR KUSHELL SAYS COMPENSATION PACKAGES NOW WEIGHTED HEAVILY TOWARD INCENTIVES RATHER THAN BASE PAY HAVEN'T FULLY RETURNED TO THE LEVELS SEEN TWO YEARS AGO SOME FRANCHISERS' HIRING PLANS DEPEND ON FINANCING THEY HAVEN'T FOUND YET MS MARSHALL WARNS SELFREGULATION BY FRANCHISERS WON'T WORK CRITICS ARGUE FRANCHISERS HAVE BEEN PROMOTING SELFREGULATION IN AN EFFORT TO HEAD OFF NEW FEDERAL FRANCHISING LAWS BUT CRITICISM OF THEIR APPROACH IS MOUNTING THREE CRITICS OF SELFREGULATION ALONG WITH ONE DEFENDER SPOKE OUT LATE LAST MONTH AT A HOUSE SMALL BUSINESS COMMITTEE HEARING AS FRANCHISERS AND FRANCHISEES HAVE CONFLICTING INTERESTS IT IS DIFFICULT TO IMAGINE A SELFREGULATORY SCHEME THAT WOULD NOT BE BIASED IN ONE DIRECTION OR THE OTHER SAID W MICHAEL GARNER A NEW YORK FRANCHISING LAWYER ANY SANCTIONS SELFIMPOSED BY FRANCHISERS MIGHT DO LITTLE TO REDRESS FRANCHISEES' GRIEVANCES HE ADDED BOSTON LAWYER HAROLD BROWN NOTED THAT THE INTERNATIONAL FRANCHISE ASSOCIATION RECENTLY TOOK A STEP TOWARD SELFREGULATION BY STRENGTHENING ITS CODE OF ETHICS BUT THE FRANCHISER GROUP'S REVISED CODE IS TOOTHLESS HE ARGUED THE IFA HAS SAID IT IS WORKING ON NEW PROCEDURES TO ENFORCE ITS ETHICS CODE THE THIRD CRITIC WAS STUART J DIZAK PRESIDENT OF VDS VIDEO SERVICES INC PITTSFORD NY HE SAID HE HAS BEEN BOTH A FRANCHISEE AND A FRANCHISER HE DENOUNCED THE IDEA OF SELFREGULATION SAYING I CONSIDER MYSELF A VERY FAIR INDIVIDUAL BUT IF I AM SELFREGULATING I AM STILL GOING TO LOOK OUT FOR MY OWN INTERESTS FIRST GIL THURM THE IFA'S CHIEF LOBBYIST OPPOSED THE THREATENED OVERREGULATION OF FRANCHISING NOTING WE MUST SEEK WAYS TO STIMULATE THE GROWTH OF FRANCHISING NOT STIFLE IT WITNESS SELECTION AT THE LAFALCE HEARINGS DRAWS FIRE MR DIZAK'S APPEARANCE REVIVED FRANCHISERS' CHARGES THAT THE HOUSE SMALL BUSINESS COMMITTEE'S ONGOING FRANCHISING HEARINGS ARE BIASED TO DATE VERY FEW LEGITIMATE FRANCHISERS HAVE HAD THE OPPORTUNITY TO TESTIFY SAYS NEIL A SIMON A WASHINGTON FRANCHISING LAWYER COMMITTEE CHAIRMAN JOHN J LAFALCE D NY CALLED THE LATEST WITNESSES A PANEL OF VERY CAPABLE EXPERTS ON FRANCHISING MR DIZAK OF VDS VIDEO FOR EXAMPLE BOASTED THAT A FRANCHISING SPECIALIST WHOM HE INVITED TO SPEAK BEFORE HIS COMPANY CALLED VDS VIDEO THE IDEAL THAT FRANCHISERS SHOULD ASPIRE TO BE BUT DAVID J KAUFMANN A NEW YORK FRANCHISING ATTORNEY SAYS OF MR DIZAK THE ONLY SOCALLED FRANCHISER PERMITTED TO TESTIFY LAST MONTH IS EITHER AN ILLEGAL FRANCHISER OR ELSE ISN'T A FRANCHISER AT ALL INDEED IN A MARCH LETTER TO A STATE ATTORNEY WHO HELPS TO ENFORCE FRANCHISE LAWS IN NEW YORK MR DIZAK STATED THAT VDS VIDEO HASN'T OPERATED AS A FRANCHISER SINCE 1984 MR DIZAK SAYS THE FIRM DECIDED THAT MOST FRANCHISES ARE SCAMS AND SO SPLIT FROM THE INDUSTRY TO BILL ITSELF AS A SELLER OF BUSINESS OPPORTUNITIES A SPOKESMAN FOR NEW YORK'S LAW DEPARTMENT SAYS MR DIZAK'S RECENT OFFERINGS DON'T APPEAR TO BE FRANCHISES UNDER STATE LAW VDS VIDEO RECENTLY ASKED ITS ATTORNEYS TO UPDATE FRANCHISEREGISTRATION PAPERS THAT THE CONCERN FILED IN 1984 MR DIZAK SAYS THAT'S PARTLY BECAUSE HE HAD DECIDED TO SPEAK OUT AS A FRANCHISER TO HELP REFORM THE INDUSTRY I HAVE TO PUT MY MONEY WHERE MY MOUTH IS SO TO SPEAK HE ADDS A LAFALCE SPOKESMAN DEFENDS MR DIZAK IT'S ABSURD TO TRY TO TARNISH HIS CREDIBILITY HE SAYS FRANCHISERS ARE DESPERATE TO TRY TO DISCREDIT WHAT WAS VALID TESTIMONY HE ADDS SEVERAL FRANCHISERS INCLUDING THE IFA'S CHAIRMAN TURNED DOWN INVITATIONS TO TESTIFY LAST MONTH REP LAFALCE HAS SAID HE PLANS TO INVITE TESTIMONY FROM OTHER FRANCHISERS FRANCHISERS' STALWARTS IN TEXAS FARED BETTER THAN THE ALAMO'S DEFENDERS AFTER ALL AFTER LOSING A HIGHLY PUBLICIZED BATTLE IN THE STATE SENATE THEY PREVAILED LAST MONTH IN A HOUSE FIGHT THAT KILLED A PROPOSAL TO IMPOSE A STATUTORY DUTY OF GOOD FAITH ON FASTFOOD FRANCHISERS THE BILL WOULD HAVE MADE IT EASIER FOR AGGRIEVED FRANCHISEES TO BRING LAWSUITS I'M STILL RECOVERING FROM THE SHOCK OF A TOTAL VICTORY SAYS STEPHEN B HAMMERSTEIN PRESIDENT OF KWIKKOPY CORP A CYPRESS TEXAS FRANCHISER OWNED BY INTERNATIONAL CENTER FOR ENTREPRENEURIAL DEVELOPMENT INC BRIEFS HOW TO VIDEO SOURCE INC WHOSE 18MONTHOLD STORE IN NEW YORK OFFERS SOME 2000 DIFFERENT INSTRUCTIONAL VIDEOTAPES SAYS IT IS SEEKING TO FRANCHISE THE FORMAT IN FEDERAL COURT IN BOSTON THE FEDERAL TRADE COMMISSION HAS ALLEGED THAT BUILDING INSPECTOR OF AMERICA INC WAKEFIELD MASS MADE UNSUBSTANTIATED CLAIMS ABOUT PROSPECTIVE FRANCHISEES' EARNINGS AND FAILED TO MAKE REQUIRED DISCLOSURES COMPANY OFFICIALS DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT HOSPITALITY FRANCHISE SYSTEMS INC PARSIPPANY NJ LAST WEEK COMPLETED ITS 125 MILLION ACQUISITION OF SUPER 8 MOTELS INC AN ABERDEEN SD FRANCHISER OF ECONOMY MOTELS MARYANN K REID A DISGRUNTLED FORMER FORT MYERS FLA FRANCHISEE OF ALL TUNE & LUBE SYSTEM INC PASTES WARNING STICKERS ON HER OUTGOING MAIL FRANCHISEE MAKES THE MONEY FRANCHISER TAKES THE MONEY 9305060089 930506 MANAGEMENT TEAM IS OUSTED AT HINGHAM INSTITUTION FOR SAVINGS HINGHAM MASS HINGHAM INSTITUTION FOR SAVINGS SAID ITS HOLDERS VOTED OVERWHELMINGLY AT THE ANNUAL MEETING TO REPLACE MANAGEMENT'S DIRECTORS AND NOMINEES WITH A DISSIDENT SLATE THE TALLY WAS 805000 SHARES TO 309000 THE BANK ALSO SAID THAT LEGAL EFFORTS BY MANAGEMENT TO REMAIN HAD COST ABOUT 1 MILLION AND WOULD SIGNIFICANTLY IMPACT SECONDQUARTER RESULTS IN LAST YEAR'S SECOND QUARTER HINGHAM REPORTED NET INCOME OF 307000 OR 25 CENTS A SHARE PAUL E BULMAN PRESIDENT SINCE 1989 AND GERARD PYNE CHAIRMAN AND MARKETING OFFICER HAVE BEEN SEPARATED FROM THEIR RESPECTIVE POSITIONS WITH THE BANK THE BANK SAID EFFORTS TO REACH THE TWO MEN WERE UNSUCCESSFUL THE BANK SAID THAT AFTER THE ANNUAL MEETING THURSDAY ITS BOARD ELECTED ROBERT H GAUGHEN JR CHAIRMAN AND PRESIDENT MR GAUGHEN ONE OF THE DISSIDENT DIRECTORS SAID THE NEW MANAGEMENT TEAM WOULD FOCUS ON REDUCING NONPERFORMING ASSETS AND RETURNING THE BANK TO PROFITABILITY BASED ON CORE OPERATING EARNINGS HE SAID A RETURN TO BANKING BASICS COULD ACHIEVE THAT THE DISSIDENT HOLDERS HAD ACCUSED BANK OFFICERS OF MISMANAGEMENT AND ALSO ALLEGED VIOLATIONS OF FEDERAL AND STATE LAW BY SENIOR MANAGEMENT MR BULMAN HAS SAID THAT THE BANK'S PROBLEMS WERE CAUSED BY BAD LOANS APPROVED BY PREVIOUS MANAGEMENT LAST MONTH WILFRED H CREIGHTON HINGHAM'S PRESIDENT UNTIL 1989 WAS ARRESTED ON FELONY CHARGES RELATED TO LOANS GRANTED BY THE BANK 9305060088 930506 MEASURE ADVANCES TO BAN REPLACEMENT OF STRIKERS WASHINGTON HOUSE AND SENATE COMMITTEES APPROVED LEGISLATION THAT WOULD BAN PERMANENT REPLACEMENT OF STRIKING WORKERS BUT THE BILL'S FUTURE REMAINS UNCERTAIN IN THE SENATE THE VOTES WENT ALONG PARTY LINES WITH DEMOCRATS ARGUING THAT THE MEASURE WOULD BALANCE THE COLLECTIVEBARGAINING PROCESS AND REPUBLICANS CONTENDING THAT IT WOULD GIVE WORKERS TOO MANY RIGHTS AND HURT BUSINESS THE LEGISLATION WAS APPROVED LAST YEAR IN THE HOUSE WHICH IS EXPECTED TO PASS THE BILL AGAIN NEXT MONTH BUT IN THE SENATE OPPONENTS ARE HOPING TO REPEAT LAST YEAR'S SUCCESSFUL ATTACK ON THE BILL IT ISN'T LIKELY TO COME UP ON THE SENATE FLOOR UNTIL THE MIDSUMMER PRESIDENT CLINTON HAS SAID HE WOULD SIGN THE BILL IF IT IS PASSED BY CONGRESS THIS BILL IS ABOUT FAIRNESS SAID CHAIRMAN WILLIAM FORD D MICH OF THE HOUSE EDUCATION AND LABOR COMMITTEE IT WILL RESTORE PEACE TO THE COLLECTIVEBARGAINING PROCESS PENNSYLVANIA REPUBLICAN WILLIAM GOODLING THE RANKING MINORITY MEMBER ON THE PANEL COUNTERED THIS IS KARL MARX'S BIRTHDAY I'M SURE HE COULDN'T ASK FOR A BETTER BIRTHDAY PRESENT 9305060087 930506 INTERNATIONAL ITALY'S DEBT RATINGS ARE CUT BY MOODY'S AMID POLITICAL TURMOIL NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED THE RATINGS OF ITALY'S FOREIGNCURRENCY OBLIGATIONS CITING THE COUNTRY'S POLITICAL UNCERTAINTY AND HIGH GOVERNMENT BUDGET DEFICIT THE DOWNGRADE TO SINGLEA1 FROM DOUBLEA INCLUDES RATINGS ON GOVERNMENTISSUED OBLIGATIONS AS WELL AS FOREIGNCURRENCY DEBT OF STATEOWNED AND PRIVATE BANKS ADDITIONALLY MOODY'S LOWERED THE RATINGS OF LIRADENOMINATED EUROBONDS OF ENEL THE STATEOWNED ELECTRIC UTILITY THE DOWNGRADES AFFECT FOREIGNCURRENCYDENOMINATED DEBT TOTALING 625 BILLION MOODY'S SAID ITALY'S LAST GOVERNMENT UNDERTOOK MEASURES TO IMPROVE FINANCES AND THE NEW GOVERNMENT BEING PUT IN PLACE ALSO IS COMMITTED TO CONTROLLING THE DEFICIT BUT CONTINUING UNCERTAINTY OVER THE ABILITY OF FUTURE GOVERNMENTS TO MAINTAIN THE REQUIRED SPENDING AUSTERITY IS HIGHER THAN APPROPRIATE FOR A DOUBLEA RATING MOODY'S SAID ACCORDING TO THE RATING AGENCY EVEN IF THE GOVERNMENT'S AUSTERITY EFFORTS ARE SUCCESSFUL THE PUBLICSECTOR DEBT RELATIVE TO GROSS DOMESTIC PRODUCT WILL CONTINUE TO RISE FOR SEVERAL YEARS DAVID LEVEY A RESEARCH DIRECTOR FOR MOODY'S SAID TOTAL DEBT OF THE GOVERNMENT THE TREASURY AND STATEOWNED ENTITIES IS 110 OF GROSS DOMESTIC PRODUCT BY COMPARISON THE RATIO IN THE US IS ABOUT 55 TO 60 MR LEVEY SAID MOODY'S NOTED THAT THE NATION'S EXTERNAL ACCOUNTS ARE SHOWING CLEAR BENEFITS FROM THE LIRA'S DEPRECIATION BUT ADDED THAT IT IS OFTEN DIFFICULT TO INSULATE A COUNTRY'S EXTERNAL SECTOR FROM DOMESTIC FINANCIAL PROBLEMS 9305060086 930506 CLINTON TO DELAY HEALTH PROPOSAL UNTIL MIDJUNE CHANGE REFLECTS A DESIRE TO NOT PILE TOO MUCH ON THE LEGISLATIVE PLATE BY HILARY STOUT AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PLANS TO DELAY RELEASE OF HIS HEALTH PLAN UNTIL MIDJUNE ADMINISTRATION OFFICIALS SAID THE POSTPONEMENT MARKS A SHIFT FROM LAST WEEK WHEN MR CLINTON SIGNALED HE STILL PLANNED TO ANNOUNCE THE PLAN THIS MONTH BUT UNDER PRESSURE FROM DEMOCRATIC LEADERS IN CONGRESS MR CLINTON HAS AGREED NOT TO ADD THE HEALTHCARE PACKAGE TO HIS ALREADY CROWDED AGENDA UNTIL AFTER HIS BUDGET GAINS SOME MOMENTUM ON CAPITOL HILL OFFICIALS SAID ALSO THEY SAID THE WHITE HOUSE STAFF NEEDS MORE TIME TO GEAR UP TO SELL THE SWEEPING HEALTH PROPOSAL TO THE PUBLIC AND CAPITOL HILL THE REVISED SCHEDULE PUTS THE ANNOUNCEMENT OF MR CLINTON'S PLAN TO EXTEND HEALTH COVERAGE TO ALL AMERICANS AND CURB MEDICAL COSTS UNTIL AFTER THE HOUSE DEBATE THIS MONTH ON THE TAX BILL HOWEVER THE TIMING STILL POSES AN AWKWARD SITUATION FOR LAWMAKERS THE SENATE FINANCE COMMITTEE IS EXPECTED TO BE WRESTLING WITH THE TAX LEGISLATION IN MIDJUNE AND HOUSE LEADERS HAD URGED THE ADMINISTRATION TO FOCUS FIRST ON THE DEFICITREDUCTION PLAN AND BRING OUT THE HEALTH PACKAGE WHEN THE DECKS ARE CLEAR IN LATE JULY WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI HAS BEEN AMONG THE MOST OUTSPOKEN PROPONENTS OF DELAY THE CHICAGO DEMOCRAT HAS SUPPORT FROM SPEAKER THOMAS FOLEY I WARNED THEM THE WHITE HOUSE THAT WE'RE GOING TO HAVE TROUBLE WITH THINGS PILED ONE ON TOP OF THE OTHER SAID MR ROSTENKOWSKI THAT'S WHY HE MR CLINTON GETS IN TROUBLE TALK OF DELAYING THE HEALTH PLAN CAME AS MR CLINTON WAS FORCED TO SCALE BACK HIS PROPOSAL TO HAVE THE GOVERNMENT DISTRIBUTE FREE VACCINES FOR ALL CHILDREN UNDER TWO YEARS OLD FEARING ANOTHER LEGISLATIVE DEFEAT AFTER SENATE REPUBLICANS SUCCEEDED IN KILLING HIS ECONOMIC STIMULUS PACKAGE LAST MONTH THE PRESIDENT WITH URGING FROM CONGRESSIONAL DEMOCRATS AGREED TO LIMIT THE FREEVACCINE PROGRAM TO CHILDREN WHO ARE ON MEDICAID OR WHO DON'T HAVE HEALTH INSURANCE COVERAGE FOR IMMUNIZATIONS THE VACCINE PROPOSAL UNVEILED LAST MONTH CAME UNDER ATTACK FROM REPUBLICANS LAWMAKERS AND PHARMACEUTICAL COMPANIES THEY ARGUED THAT IT IS UNNECESSARY AND WOULD BE TOO COSTLY FOR THE GOVERNMENT TO SUPPLY FREE VACCINES TO CHILDREN WHOSE PARENTS CAN AFFORD TO PAY FOR THEM THE REVISED LEGISLATION PROBABLY WOULD COST THE GOVERNMENT HALF AS MUCH AS THE ORIGINAL BILL SUPPORTERS SAID BUT DRUG COMPANIES STILL FEARING THEIR PROFITS WOULD SUFFER CRITICIZED EVEN THE SCALEDBACK LEGISLATION THE BILL REMAINS TOO EXPENSIVE AND WE THINK IT WILL DO LITTLE IF ANYTHING TO IMPROVE THE IMMUNIZATION RATE SAID PAMELA ADKINS A SPOKESWOMAN FOR MERCK & CO THE DELAY OF THE HEALTH PLAN AND THE SCALING BACK OF THE IMMUNIZATION PROPOSAL CONTRIBUTED TO A GROWING IMAGE OF DISARRAY AT THE WHITE HOUSE ON TUESDAY MR CLINTON HIMSELF SAID HIS PRESIDENCY NEEDED A SHARPER FOCUS AND PLEDGED TO REORGANIZE HIS STAFF AS PART OF THE WHITE HOUSE RESTRUCTURING EFFORT ROY NEEL THE CHIEF OF STAFF FOR VICE PRESIDENT ALBERT GORE IS EXPECTED TO BE NAMED A DEPUTY CHIEF OF STAFF THE GOAL IS TO BRING MORE COORDINATION AND DISCIPLINE TO THE STAFF OTHERS REMAIN UNDER CONSIDERATION FOR THE JOB THOUGH BY MOST ACCOUNTS MR CLINTON HAS PICKED UP WARNINGS FROM BUDGET DIRECTOR LEON PANETTA AND CONGRESSIONAL DEMOCRATS WHO SAY THE HEALTH PLAN IS DOOMED TO FAIL UNLESS THE PRESIDENT'S STAFF BECOMES BETTER ORGANIZED AND HE FOCUSES HIS MESSAGE RATHER THAN TRYING TO DO TOO MUCH AT ONE TIME MR CLINTON NOW APPEARS TO BE ADDRESSING THE PROBLEM THE DELAY IN THE HEALTH PLAN WHICH ORIGINALLY WAS TO BE UNVEILED MAY 3 THEN POSTPONED TO MAY 17 THEN TO SOMETIME AROUND MAY 25 AND NOW TO MIDJUNE WASN'T PROMPTED BECAUSE THE WHITE HOUSE NEEDS MORE TIME TO FINISH THE PLAN ACCORDING TO AIDES RATHER THEY SAID THE WHITE HOUSE REALIZES THAT THE WHITE HOUSE POLITICAL LEGISLATIVE GOVERNMENT RELATIONS AND COMMUNICATIONS SHOPS NEED MORE TIME TO BUILD SUPPORT FOR THE LEGISLATION MUCH OF THE SHUFFLING BEING DISCUSSED AT THE WHITE HOUSE IS AIMED AT IMPROVING THE ADMINISTRATION'S ABILITY TO RALLY SUPPORT FROM ITS ALLIES IN STATE AND LOCAL GOVERNMENTS AS WELL AS INTEREST GROUPS RAHM EMANUEL THE POLITICAL DIRECTOR PROBABLY WILL PLAY A LARGER ROLE SENATE SUPPORTERS OF THE PRESIDENT'S HEALTHCARE EFFORT SAY THEY SEE THE REVISED TIMETABLE FOR RELEASING THE PLAN AS A VICTORY BECAUSE IT SHOWS THAT THE PRESIDENT ISN'T LISTENING TO HIS ECONOMIC ADVISERS AND CONSERVATIVES WHO WANT THE PLAN PUSHED ALL THE WAY BACK TO SEPTEMBER THAT ALMOST CERTAINLY WOULD ASSURE THAT IT COULDN'T BE ENACTED THIS YEAR THE PRESIDENT AND HILLARY RODHAM CLINTON WHO HEADS THE WHITE HOUSE HEALTH CARE TASK FORCE STILL INSIST THAT A COMPREHENSIVE HEALTHREFORM BILL MUST BE ENACTED THIS YEAR SPEAKING TO REPORTERS AFTER A WHITE HOUSE LUNCHEON WITH MR AND MRS CLINTON SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE SAID IT IS IMPERATIVE THAT WE TRY TO PASS HEALTH LEGISLATION THIS YEAR DAVID ROGERS CONTRIBUTED TO THIS ARTICLE 9305060085 930506 REVIEW & OUTLOOK EDITORIAL CHOICE CHANCE IN CHICAGO GARY LAPAILLE AN ILLINOIS STATE SENATOR AND CHAIRMAN OF THAT STATE'S DEMOCRATIC PARTY CAST THE DECIDING VOTE BY WHICH THE SENATE APPROVED A PILOT SCHOOL VOUCHER PROGRAM FOR INNERCITY CHICAGO STUDENTS FOR THIS THE NINE MEMBER SENATE MINORITY CAUCUS FIRED OFF A LETTER THAT DENOUNCED HIM AS UNSUITABLE TO CALL HIMSELF LEADER OF THE STATEWIDE PARTY WHAT'S GOING ON HERE SENATOR LAPAILLE'S DISTRICT NEAR MIDWAY AIRPORT IS 40 MINORITY HE NOTES THAT POLLS SHOW SCHOOL CHOICE IS OVERWHELMINGLY POPULAR WITH MINORITIES AND HE HAS HUNDREDS OF SUPPORTIVE LETTERS FROM CONSTITUENTS IT'S SAD SOME PEOPLE HAVE CHOSEN TO STAND WITH AN INEFFECTIVE BUREAUCRACY AND DENY MINORITY AND OTHER PARENTS SOME EDUCATIONAL FREEDOM HE TOLD US WHEN HE ENTERED POLITICS IN 1976 MR LAPAILLE WAS TOLD CHICAGO'S SCHOOLS HAD PROBLEMS BUT MORE MONEY WOULD SOLVE THEM IT HASN'T WORKED THE HEARTLAND INSTITUTE REPORTS THAT OF THE CITY'S 64 PUBLIC HIGH SCHOOLS 31 SCORED IN THE BOTTOM 1 OF THE NATION ON COLLEGE ENTRANCE EXAMS SMALL WONDER THAT 46 OF CHICAGO'S PUBLIC SCHOOL TEACHERS SEND THEIR OWN CHILDREN TO PRIVATE SCHOOLS TODAY THE CHOICE PILOT PROGRAM HE HELPED TO VICTORY IN THE SENATE GOES BEFORE THE STATE HOUSE EDUCATION COMMITTEE A LIVING MONUMENT TO THE STATUS QUO THE BILL'S PROSPECTS THERE ARE POOR THAT'LL BE TOUGH LUCK FOR JOHN JENKINS HE'S A BLACK PARENT WHO IS SUING THE CHICAGO SCHOOLS FOR TRAPPING HIS CHILDREN IN AN EDUCATIONAL CASTE SYSTEM WE NEED CHOICE TO FORCE ALL SCHOOLS TO IMPROVE HE SAYS IT'S NOT SURPRISING THAT POLITICIANS ARE LIGHT YEARS BEHIND PARENTS IN RECOGNIZING THAT 9305060084 930506 INTERNATIONAL NEW LEADER OF PALESTINIAN DELEGATION MOVES MIDEAST TALKS BEYOND RHETORIC BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ISRAELIPALESTINIAN PEACE TALKS HAVE TAKEN ON A NEW SERIOUSNESS IN LARGE PART BECAUSE OF THE PRESENCE OF THE NEW LEADER OF THE PALESTINIAN DELEGATION FAISAL HUSSEINI WHEN THE LATEST ROUND BEGAN MR HUSSEINI SURPRISED PARTICIPANTS BY DISPENSING WITH THE USUAL RHETORIC ABOUT THE HARSHNESS OF ISRAELI OCCUPATION AND FOCUSED IMMEDIATELY ON SOME NEW ISRAELI PROPOSALS HE ASKED POINTED QUESTIONS ABOUT SUCH ISSUES AS HOW PALESTINIANS WOULD ADMINISTER BUDGETS FOR HEALTH EDUCATION AND OTHER ACTIVITIES TWO DAYS LATER FOR THE FIRST TIME MEANINGFUL NEGOTIATIONS BEGAN ON THE DETAILS OF A PLAN THAT IS SUPPOSED TO LEAD TO PALESTINIAN SELFRULE OF THE OCCUPIED WEST BANK AND GAZA SUCH SEEMINGLY SMALL STEPS MARK SIGNIFICANT PROGRESS AND ARE PRODUCING OPTIMISTIC APPRAISALS FROM THE CLINTON ADMINISTRATION A SENIOR US OFFICIAL WHO FOLLOWS MIDEAST ISSUES SAYS THEY'RE FINALLY ENGAGING ON THE SUBSTANCE OF THE NEGOTIATIONS THEY'RE ABLE TO TALK TO EACH OTHER IN A LANGUAGE BOTH CAN UNDERSTAND THIS HAS NEVER HAPPENED BEFORE MR HUSSEINI'S PRESENCE IN THE NEGOTIATING ROOM ALSO REPRESENTS SIGNIFICANT PROGRESS THOUGH HE HAS BEEN THE KEY PALESTINIAN FIGURE TALKING WITH ISRAEL AND THE US HE WAS BARRED FROM THE ROOM BY ISRAEL'S PREVIOUS RIGHTWING LIKUD GOVERNMENT MR HUSSEINI IS FROM EAST JERUSALEM AND THE LIKUD BELIEVED HIS PRESENCE WOULD BE A TACIT ACKNOWLEDGEMENT OF THE ARAB CLAIM TO PART OF JERUSALEM WHICH ISRAEL REGARDS AS ITS CAPITAL BUT YITZHAK RABIN WHO WAS ELECTED ISRAEL'S PRIME MINISTER LAST JUNE AND WANTS TO REACH A QUICK ACCORD WITH HIS ARAB NEIGHBORS REVERSED THAT POLICY FOR MONTHS ISRAEL COMPLAINED THAT THE PALESTINIANS SEEMED INCAPABLE OF MAKING DECISIONS MR RABIN RECOGNIZED THAT THERE COULD ONLY BE PROGRESS IF ISRAEL PERMITTED MR HUSSEINI TO SIT AT THE TABLE THIS MEANS THAT THE ISRAELIS ARE NOW DEALING WITH REALITY THEY ARE READY TO START MAKING BUSINESS MR HUSSEINI SAID IN A RECENT INTERVIEW MR HUSSEINI HAS SHOWN THE ISRAELIS HE ALSO IS READY TO DO BUSINESS IN THE PAST TWO WEEKS AFTER NEGOTIATING SESSIONS HE HAS OFTEN BEEN ON THE PHONE WITH ISRAELI NEGOTIATORS FOLLOWING THROUGH ON POINTS RAISED AT THE BARGAINING TABLE THE ARISTOCRATIC 52YEAROLD MR HUSSEINI WHOSE GRANDFATHER WAS A PALESTINIAN MAYOR OF JERUSALEM AND WHOSE FATHER WAS KILLED IN THE 1948 ARABISRAELI WAR SEEMS BORN TO PLAY THE ROLE OF PALESTINIAN INTERLOCUTOR WITH ISRAEL HE IS A SKILLED POLITICIAN WITH A STRONG CONSTITUENCY ON THE WEST BANK HE ALSO SPEAKS FLUENT HEBREW WHEN HE ADDRESSES PEACE RALLIES IN ISRAEL HE IS THE BEST INTERPRETER OF THE ISRAELIS AND THE BEST NEGOTIATOR HE CAN BE THE BRIDGE FOR THE FUTURE SAYS MOHAMMAD WAHBY A FORMER EGYPTIAN DIPLOMAT WHO NOW IS A COLUMNIST AND MR HUSSEINI HAS CLOSE TIES WITH YASSER ARAFAT HEAD OF THE PALESTINE LIBERATION ORGANIZATION WITH WHOM THE ISRAELIS REFUSE TO TALK BUT WHO MUST BLESS ANY FINAL SETTLEMENT US OFFICIALS SAY IT WAS MR ARAFAT WHO GAVE MR HUSSEINI THE GREEN LIGHT TO HOLD SERIOUS DISCUSSIONS WHEN THE NINTH ROUND OF PEACE TALKS BEGAN IN WASHINGTON LAST WEEK ARAB AND ISRAELI DELEGATES WILL EXTEND THEIR TALKS HERE FOR ANOTHER WEEK BOTH ISRAEL AND THE PALESTINIANS NEED POSITIVE RESULTS DURING HIS CAMPAIGN MR RABIN PROMISED ISRAELIS PEACE AND SECURITY SO FAR HE HASN'T DELIVERED EITHER AN OUTBURST OF VIOLENCE AGAINST ISRAELIS EARLIER THIS YEAR FORCED MR RABIN TO CLOSE OFF THE OCCUPIED TERRITORIES AND HAS HELPED REJUVENATE HIS LIKUD OPPOSITION WHICH CLAIMS HE IS MAKING TOO MANY CONCESSIONS AT THE BARGAINING TABLE MR RABIN ALSO HASN'T REACHED A QUICK ACCORD WITH SYRIA IN SEPARATE TALKS AS HE HAD HOPED PALESTINIAN NEGOTIATORS ALSO ARE THREATENED BY ARAB EXTREMISTS PARTICULARLY THE ISLAMIC FUNDAMENTALIST HAMAS GROUP WHICH REJECTS ANY ACCOMMODATION WITH ISRAEL WHENEVER YOU ARE CLOSE TO AN AGREEMENT THE MORE YOU WILL FACE THIS PROBLEM MR HUSSEINI SAYS BUT WE HAVE TO MAKE DECISIONS MR RABIN HAS TRIED TO IMPROVE THE SITUATION ON THE GROUND TO SHOW PALESTINIANS THE BENEFITS OF PEACE THE RETURN OF THE DEPORTEES AND ACCEPTANCE OF MR HUSSEINI ARE PART OF THAT PROCESS SO IS ISRAEL'S OFFER OF WHAT IT CALLS EARLY EMPOWERMENT WHICH WOULD SPEED UP PREPARATION FOR AUTONOMY IN SUCH AREAS AS EDUCATION HEALTH AND PERMITTING THE PALESTINIANS TO TRAIN A POLICE FORCE MR RABIN ADMITS HE IS IN A HURRY DURING A RECENT DINNER AT THE ISRAELI EMBASSY IN WASHINGTON HE NOTED THAT HE IS 71 YEARS OLD AND HAS SEEN 35 YEARS OF WAR HE ALSO HAS STRONG CONFIDENCE IN THE CLINTON ADMINISTRATION WHICH HAS PROMISED TO PLAY AN ACTIVE BROKER'S ROLE DURING A RECENT SPEECH TO AN ARAB AUDIENCE SECRETARY OF STATE WARREN CHRISTOPHER DEPARTED FROM HIS TEXT AND PROMISED THAT THE US WOULD BE EVENHANDED A CODE WORD IN MIDEAST DIPLOMACY FOR A TILT AWAY FROM ISRAEL SUCH A REMARK WOULD HAVE PROMPTED LOUD PROTESTS FROM THE FORMER LIKUD GOVERNMENT WHICH HAD ICY RELATIONS WITH THE BUSH ADMINISTRATION BUT IT CREATED BARELY A RIPPLE MEANWHILE MR HUSSEINI KEEPS MOVING SLOWLY AHEAD WHEN SOMEONE IS ON A HIGH WIRE BETWEEN TWO BUILDINGS YOU DON'T ASK HIM IF HE IS AN OPTIMIST OR PESSIMIST HE SAYS WHAT YOU KNOW IS THAT HE MUST BE SERIOUS WE ARE SERIOUS WE DON'T WANT TO MAKE MISTAKES 9305060083 930506 LEISURE & ARTS BOOKSHELF ON THE MEDIA BEAT BY JOE QUEENAN FROM 1982 UNTIL 1985 HOWARD KURTZ COVERED THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR THE WASHINGTON POST NOBODY CARED YEARS LATER STILL MIFFED AT HIS COLLEAGUES IN THE MEDIA FOR IGNORING THE SCANDALS HE HELPED EXPOSE AT THAT LAUGHABLE AGENCY MR KURTZ LANDED A JOB AS THE POST'S MEDIA REPORTER HERE HE GETS TO SPEND ALL HIS TIME DEPLORING THE TERRIBLE JOB HIS COLLEAGUES IN THE MEDIA HAVE DONE COVERING THE S&L SCANDAL AIDS THE LOS ANGELES RIOTS DONALD TRUMP OPERATION DESERT STORM EVERYTHING NOW HAVING WRITTEN HUNDREDS OF ARTICLES DEPLORING THE TERRIBLE JOB HIS COLLEAGUES IN THE MEDIA ARE DOING COVERING EVERYTHING HE HAS REPACKAGED THEM INTO A BOOK DEPLORING THE SAME THIS IS NOT WHAT BEN FRANKLIN HAD IN MIND MEDIA REPORTERS THE JOURNALISTIC EQUIVALENT OF POLICE INTERNALAFFAIRS DEPARTMENTS FORCE JOURNALISTS TO BE ON THE RECEIVING END OF UNFRIENDLY QUESTIONS FOR A CHANGE BUT THEY'RE A PRETTY MOTLEY CREW FUSING THE SKILLS OF THE MONDAYMORNING QUARTERBACK WITH THOSE OF THE SNITCH AND THE PARASITE GIVEN THE LEISURE TO SIT BACK ON FRIDAY AND EXPLAIN WHY A DEADLINE REPORTER FAILED TO GET THE STORY ON MONDAY THEY ARE NOT MERELY HOLIER THAN THOU THEY ARE HOLIER THAN EVERYBODY HOWARD KURTZ IS NOTHING IF NOT HOLY THE TASK MR KURTZ HAS SET HIMSELF IN MEDIA CIRCUS THE TROUBLE WITH AMERICA'S NEWSPAPERS TIMES BOOKS 420 PAGES 25 IS TO IDENTIFY A NUMBER OF IMPORTANT STORIES THAT THE PRESS HAS MISHANDLED IN THE PAST DECADE AND THEN EXPLAIN WHY BUT IN THE VERY FIRST CHAPTER MR KURTZ MUFFS THE ASSIGNMENT WHEN HE EXCORIATES THE PRESS FOR LAVISHING ITS ATTENTION ON MR TRUMP THROUGHOUT THE '80S THIS IS THE SAME MR KURTZ WHO JUST THREE PAGES EARLIER ATTACKS THE PRESS FOR BEING BORING REMOTE AND CUT OFF FROM THE INTERESTS OF THE ORDINARY READER HAVING FIRST SAVAGED SERIOUS NEWSPAPERS FOR BEING DISHWATER DULL HE THEN ATTACKS NOTSOSERIOUS TABLOIDS FOR GIVING BIGGER PLAY TO MR TRUMP'S LATEST ROMANTIC FLING THAN TO NELSON MANDELA'S RELEASE FROM PRISON EARTH TO HOWARD WE'RE TRYING TO SELL A FEW NEWSPAPERS HERE MORE TO THE POINT THIS IS A RIDICULOUS MIXTURE OF APPLES AND ORANGES TABLOIDS ARE SUPPOSED TO COVER DONALD AND MARLA MR MANDELA'S RELEASE IS SUPPOSED TO BE REPORTED BY THE GROWNUP NEWSPAPERS LIKE THE NEW YORK TIMES TABLOIDS ARE TABLOIDS NOBODY READS THEM FOR THE DANCE REVIEWS MR KURTZ IS EQUALLY ADRIFT WHEN HE CRITICIZES THE MEDIA FOR FAILING TO COVER THE DISMISSAL OF A FINANCIAL ANALYST AT JANNEY MONTGOMERY SCOTT INC WHO DARED TO QUESTION THE HEALTH OF MR TRUMP'S EMPIRE HERE WE HAVE TWO PROBLEMS INACCURACY AND SILLINESS MR KURTZ IS FLATOUT WRONG WHEN HE CLAIMS THAT THE PRESS IGNORED THE FIRING IT WAS GIVEN CONTINUOUS PLAY IN THE TIMES AND IN THIS PAPER MR KURTZ ACTUALLY SEEMS TO BELIEVE THAT THE GENERAL PRESS INCLUDING TABLOIDS SHOULD HAVE DUMPED DONALD AND MARLA FROM THEIR COVERS TO WRITE ABOUT THE FIRING OF AN ANALYST FROM A COMPANY NONE OF THEM HAD EVER HEARD OF INCOHERENCE AND INCONSISTENCY PERMEATE THE BOOK ON THE ONE HAND HE WANTS WHITE JOURNALISTS TO BE MORE AGGRESSIVE IN WRITING ABOUT RACE RELATIONS ON THE OTHER HAND HE DESCRIBES WHAT HAPPENS TO WHITE JOURNALISTS WHO DEVIATE FROM THE PARTY LINE ABOUT RACE OR SEX AND SEEMS TO GO ALONG WITH THEIR CHASTISEMENT IN THE VERY SAME CHAPTER IN WHICH HE DESCRIBES THE REV AL SHARPTON AS A LIAR AND A GOVERNMENT STOOLIE HE APPLAUDS HIS PERSPICACIOUS TAKE ON THE LA RIOTS HAVING FIRST ATTACKED HIS COLLEAGUES FOR THE TABLOIDIZATION OF THE INDUSTRY HE THEN ADMITS THAT HE BEGGED HIS EDITORS AT THE POST TO LET HIM WRITE A STORY ABOUT HOW THE PRESS WAS COVERING BILL CLINTON'S ALLEGED EXTRAMARITAL AFFAIRS NOR DOES HE EVER EXPLAIN WHY IT IS SLEAZY FOR THE PRESS TO REPORT ON PEOPLE WHO DO SLEAZY THINGS PARTICULARLY WHEN THEY'RE SEEKING THE HIGHEST OFFICE IN THE LAND WHO TOLD GARY HART TO TAKE UP WITH DONNA RICE DID SOMEONE AT THE CLEVELAND PLAIN DEALER HOLD A GUN TO MR CLINTON'S HEAD AND FORCE HIM TO BEFRIEND GENNIFER FLOWERS THE FAILINGS OF MEDIA CIRCUS STEM FROM MR KURTZ'S UTOPIAN CONCEPTION OF THE NEWSPAPER BUSINESS HE HAS A PBS VISION OF JOURNALISM IN WHICH EVERY PAPER WILL COVER HUD AND RUN ENDLESS PROFILES OF ADVERTISING EXECS WHO RETIRE TO THE ARAN ISLANDS AND NO ONE WILL WRITE ABOUT AMY FISHER HE FAILS TO RECOGNIZE THAT NEWSPAPERS ARE A REFLECTION OF SOCIETY'S VALUES AND THAT GIVEN A CHOICE BETWEEN READING ABOUT THE PLIGHT OF THE HAPLESS TAMILS AND THE PLIGHT OF THE HAPLESS MARY JO BUTTAFUOCO THE PUBLIC WILL CHOOSE HER MOST OF THE TIME GOOD INVESTIGATIVE JOURNALISM IS MEDICINE BUT IF YOU ONLY GIVE PEOPLE MEDICINE THEY WILL EVENTUALLY STOP BUYING YOUR NEWSPAPER DOES MEDIA CIRCUS HAVE ANY REDEEMING FEATURES YES AS A CATALOG OF MEDIA SCREWUPS THE BOOK HAS SOME ARCHIVAL VALUE THE NATIONAL PRESS REALLY DID BLOW THE S&L STORY THOUGH THE LOCAL PRESS DID NOT JUST AS WE MAY BE BLOWING THE BOOMINMUTUALFUNDS STORY RIGHT NOW MR KURTZ SHOULD ALSO BE COMMENDED FOR REPACKAGING THE POST STORY IN WHICH HE DREW ATTENTION TO THE FACT THAT NATIONAL PUBLIC RADIO'S HORRID SELFPROMOTER NINA TOTENBERG WAS A PLAGIARIST AS A JOURNALIST MR KURTZ'S HEART IS PROBABLY IN THE RIGHT PLACE IT'S JUST THAT HIS BRAIN SOMETIMES GOES AWOL 9305060082 930506 FOREIGN EXCHANGE DOLLAR DRIFTS FINISHES MOSTLY HIGHER TRADING RESUMPTION IN JAPAN AWAITED BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH NO SIGNIFICANT FRESH NEWS TO INFLUENCE IT THE DOLLAR DRIFTED AND FINISHED MOSTLY HIGHER TRADERS SAID THEY LARGELY IGNORED A SMALL GERMAN INTEREST RATE CUT WHICH HAD BEEN EXPECTED AND A MILDLY OPTIMISTIC REPORT ON THE US ECONOMY BY THE FEDERAL RESERVE BOARD WHICH THEY TERMED ANECDOTAL LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15805 MARKS UP FROM 15758 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11045 YEN UP FROM 11025 YEN STERLING WAS TRADING AT 15650 DOWN FROM 15665 DEALERS SAID THEIR ATTENTION IS FOCUSED ON JAPAN WHERE TRADERS WILL RETURN TO THEIR DESKS THURSDAY AFTER A WEEK OF HOLIDAYS MANY EXPECT THIS RESUMPTION OF ACTIVITY WILL PROVIDE FRESH IMPETUS TO THE YEN WHICH HAS MOVED LISTLESSLY ALL WEEK ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 11020 YEN AND AT 15786 MARKS THE DOLLAR CREPT SLOWLY HIGHER AGAINST THE MARK IN EUROPEAN AND NORTH AMERICAN TRADING YESTERDAY PLAYERS SAID TECHNICAL FACTORS WERE RESPONSIBLE THE MARKET HAS BEEN HAPPY TO SELL THE DOLLAR LOWER IN RECENT DAYS SO WHAT WE SAW WAS A CORRECTION SAID PETER DEMBINSKI SENIOR DEALER AT BANK JULIUS BAER & CO THE DOLLAR HAS MET SUSTAINED TECHNICAL SUPPORT AROUND 15700 MARKS DURING THE PAST WEEK AND BOUNCED OFF THAT LEVEL AGAIN WEDNESDAY NOTED JOHN BEERLING CHIEF DEALER AT NORWEST BANK CORP IN MINNEAPOLIS THE MARKET SHRUGGED OFF A SLIGHT REDUCTION IN GERMANY'S INTEREST RATE ON SECURITIES REPURCHASE AGREEMENTS OR REPOS REPOS ARE THE GERMAN CENTRAL BANK'S PREFERRED TOOL FOR FINETUNING DOMESTIC MONEYMARKET RATES THE LOWEST ACCEPTED RATE AT THE BANK'S REPO AUCTION WEDNESDAY WAS 771 DOWN FROM 775 LAST WEEK THE EASING WAS WIDELY ANTICIPATED AND IN LINE WITH THE BUNDESBANK'S POLICY OF GRADUAL RATE CUTS NORWEST'S MR BEERLING SAID CONSEQUENTLY IT HAD LITTLE IMPACT HE SAID THE BEIGE BOOK REPORT ON THE US ECONOMY FROM THE FED ALSO HAD LITTLE INFLUENCE ON TRADING PARTICIPANTS SAID THE BEIGE BOOK IS A SUMMARY OF ECONOMIC ACTIVITY PREPARED FOR USE AT THE NEXT MEETING OF THE FED'S POLICYSETTING FEDERAL OPEN MARKET COMMITTEE WHICH WILL OCCUR MAY 18 THE LATEST REPORT REFLECTS INFORMATION GATHERED BETWEEN MARCH 1 AND APRIL 23 THE REPORT SAID THE ECONOMY HAS SHOWN GENERALLY MODEST IMPROVEMENT LED BY A REBOUND IN APRIL RETAIL SALES FROM A WEATHERDAMPED PERFORMANCE IN MARCH BUT THE REPORT DOESN'T CONTAIN ANY HARD AND FAST NUMBERS AND IS LARGELY ANECDOTAL MR BEERLING SAID ALSO THE BEIGE BOOK'S MILDLY OPTIMISTIC TONE IS AT ODDS WITH PREVAILING MARKET SENTIMENT ABOUT THE US ECONOMY AND THE DOLLAR MR BEERLING SAID THE MARKET IS LOOKING TO CONFIRM THAT WE'RE NOT RECOVERING THE MARKET IS LOOKING TO SELL THE DOLLAR HE ADDED 9305060081 930506 ABREAST OF THE MARKET INDUSTRIAL AVERAGE INCHES HIGHER ON SMALL DOSE OF POSITIVE NEWS BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES INCHED HIGHER AS INVESTORS WERE FED A SMALL DOSE OF POSITIVE ECONOMIC NEWS BUT INVESTORS STILL HAVE A SICK FEELING ABOUT THE ECONOMY AND THEY WEREN'T WILLING TO MOVE STOCKS SIGNIFICANTLY TRADERS SAID THEY EXPECT MORE NERVOUS TRADING UNTIL FRIDAY WHEN THE GOVERNMENT RELEASES APRIL EMPLOYMENT DATA THE DOW JONES INDUSTRIAL AVERAGE ADDED 291 TO 344910 ADVANCING BIG BOARD ISSUES LED DECLINERS 1116 TO 788 BIG BOARD VOLUME WAS ACTIVE AT 270960000 SHARES THE STANDARD & POOR'S 500 STOCK INDEX ROSE 047 OR 011 TO 44452 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX INCREASED 049 OR 020 TO 24572 AND THE DOW JONES EQUITY MARKET INDEX CLIMBED 057 OR 014 TO 42128 THE FEDERAL RESERVE BOARD SAID ITS BEIGE BOOK STUDY SHOWED GENERALLY MODEST IMPROVEMENT IN ECONOMIC CONDITIONS AROUND THE COUNTRY THAT REPORT FOLLOWED A STRONG READING ON AUTO SALES TUESDAY GARY THAYER A SENIOR ECONOMIST AT AG EDWARDS & SONS SAID THOSE NUMBERS HAVE HELPED REASSURE INVESTORS WHO WERE LEFT JITTERY BY TWO OTHER REPORTS THIS WEEKONE BY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SHOWING WEAKNESS IN MANUFACTURING AND ANOTHER BY THE COMMERCE DEPARTMENT SHOWING A PLUNGE IN ITS INDEX OF LEADING ECONOMIC INDICATORS PRICES WERE DRIVEN LOWER BRIEFLY IN THE AFTERNOON FOLLOWING RELEASE OF THE TREASURY'S PLANS TO REVISE ITS QUARTERLY DEBT REFUNDING AUCTIONS TRADERS SAID STOCKS FOLLOWED BOND PRICES LOWER JUST AFTER THE NEWS AS FUTURESRELATED PROGRAM SELL ORDERS POURED INTO THE EQUITY MARKET THE LOSSES IN BOTH STOCKS AND BONDS WERE SHORTLIVED THE TREASURY'S DECISION TO SELL 30YEAR BONDS SEMIANNUALLY INSTEAD OF QUARTERLY AND TO ELIMINATE SEVENYEAR NOTE SALES WERE LARGELY IN LINE WITH EXPECTATIONS ECONOMISTS SAID BOND PRICES HAD RALLIED PARTLY ON THESE EXPECTATIONS BOTH TUESDAY AND MONDAY TAKING STOCKS ALONG FOR THE RIDE THE PROSPECT OF LOWER INTEREST RATES HAD CHEERED STOCK TRADERS THE MOST BUOYANT ACTION IN STOCKS WAS AGAIN FOUND IN SMALLER ISSUES THE NASDAQ COMPOSITE INDEX JUMPED 075 ITS SEVENTH STRAIGHT DAILY ADVANCE AND THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 113 OR 027 TO A RECORD 42589 EDWARD NICOSKI A MARKET STRATEGIST AT PIPER JAFFRAY SAID THE RALLY IN SMALL STOCKS WHICH WAS MOST PRONOUNCED IN TECHNOLOGY AND HEALTH CARE DEMONSTRATES PEOPLE'S UNEASE WITH THE ECONOMY IF WE ARE INDEED LOSING STRENGTH IN THE ECONOMY WE ARE GOING TO HAVE TO GO BACK TO GROWTH STOCKS AND WE ARE LOOKING PRIMARILY AT SECONDARY ISSUES MR NICOSKI SAID CABLE TELEVISION STOCKS REVERSED COURSE AFTER ANALYSTS MADE CAUTIONARY COMMENTS THE GROUP GAINED TUESDAY AFTER THE FEDERAL COMMUNICATIONS COMMISSION RELEASED INDUSTRY REGULATIONS THAT MANY OBSERVERS SAID WERE LESS ONEROUS THAN HAD BEEN EXPECTED YESTERDAY SOME ANALYSTS INCLUDING GOLDMAN SACHS' BARRY KAPLAN PUT A MORE NEGATIVE SPIN ON THE NEWS TIME WARNER WHICH ROSE 3 1/8 TUESDAY FELL 2 TO 34 1/8 CABLEVISION SYSTEMS WHICH ADVANCED 3 5/8 TUESDAY LOST 2 1/2 TO 30 3/4 ON THE NASDAQ MARKET TELECOMMUNICATIONS CLASS A SKIDDED 1 3/4 TO 19 3/4 IT ROSE 2 1/4 TUESDAY ITT CORP JUMPED 3 TO 83 3/4 AFTER IT AGREED TO SELL A PORTFOLIO OF SMALL UNSECURED CONSUMER LOANS TO A GROUP LED BY AN AFFILIATE OF GOLDMAN SACHS THE NEW YORK COMPANY WILL RECEIVE 17 BILLION IN CASH AND RETAIN A 15 EQUITY STAKE IN THE ACQUIRING GROUP HOUSEHOLD INTERNATIONAL OF PROSPECT HEIGHTS ILL WILL HAVE A 25 INTEREST ITS SHARES SLIPPED 5/8 TO 70 PHILIPS NV JUMPED 1 1/8 TO 15 3/4 ALTHOUGH THE DUTCH ELECTRONICS COMPANY SAID ITS FIRSTQUARTER EARNINGS FELL 364 THE RESULTS WERE BETTER THAN ANALYSTS FORECAST MANY HAD EXPECTED PHILIPS TO POST A LOSS SEPARATELY THE COMPANY SAID IT HOPES TO RENEGOTIATE TERMS OF ITS HIGH INTEREST RATE DEBT THE DOW JONES TRANSPORTATION AVERAGE SLUMPED 1733 OR 109 TO 157571 IT WAS DRAGGED DOWN BY CONTINUED SELLING IN TRANSPORTATION LEASING FIRM XTRA WHICH RELEASED EARNINGS NEWS TUESDAY AND IN SEVERAL AIRLINE STOCKS AFTER A SALOMON BROTHERS DOWNGRADE XTRA FELL 4 1/4 TO 88 UAL PARENT OF UNITED AIRLINES LOST 2 3/4 TO 133 1/2 AND AMR PARENT OF AMERICAN AIRLINES DROPPED 5/8 TO 67 3/8 PROMUS JUMPED 2 1/4 TO 43 7/8 THE MEMPHIS TENN HOTEL AND CASINO COMPANY DISCLOSED PLANS FOR A DOCKSIDE CASINO PROJECT IN MISSISSIPPI ITS HARRAH'S UNIT WILL HOLD A 75 INTEREST IN THE DEVELOPMENT SEPARATELY PROMUS RECEIVED APPROVAL FROM REGULATORS TO OPEN A GAMING OPERATION ABOARD A RIVERBOAT IN JOLIET ILL TELEFONOS DE MEXICO ADDED 1 1/8 TO 48 7/8 THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN REPORTED THAT ANALYSTS BELIEVE SELLING IN THE MEXICAN TELEPHONE COMPANY'S STOCK RECENTLY WAS OVERDONE THE COMPANY RELEASED DISAPPOINTING EARNINGS NEWS LAST WEEK 9305060080 930506 WHAT'S NEWS WORLDWIDE BOSNIAN SERBS REJECTED A PEACE TREATY AS RUSSIA AGREED TO SEND TROOPS THE SERBS' ASSEMBLY OVERWHELMINGLY VOTED DOWN THE VANCEOWEN PLAN CALLING INSTEAD FOR A POPULAR REFERENDUM EARLIER BOSNIAN SERB LEADER KARADZIC AND SERBIA'S MILOSEVIC TOLD THE ASSEMBLY IT HAD NO CHOICE BUT TO SIGN THE ACCORD WHILE HARDLINERS DENOUNCED IT AS TANTAMOUNT TO TREASON MOSCOW PLEDGED TO DISPATCH TROOPS AS PART OF A PEACEKEEPING FORCE RUSSIA'S YELTSIN IN A MEETING WITH SECRETARY OF STATE CHRISTOPHER DECLINED TO DISCUSS CLINTON'S MILITARY PLAN HOWEVER THE TWO NATIONS SAID THEY WOULD WEIGH TOUGHER MEASURES IF SERBS REJECT THE TREATY UN MILITARY OBSERVERS WERE TURNED BACK AT A BOSNIAN SERB CHECKPOINT AS THEY SOUGHT TO REACH THE EASTERN TOWN OF ZEPA TO CHECK REPORTS OF HEAVY FIGHTING CLINTON PLANS TO DELAY RELEASE OF HIS HEALTH PLAN UNTIL MIDJUNE ADMINISTRATION OFFICIALS SAID THE SLIGHT POSTPONEMENT MARKS A SHIFT FROM LAST WEEK WHEN THE PRESIDENT SIGNALED THAT HE STILL INTENDED TO ANNOUNCE THE HEALTH PLAN LATER THIS MONTH SCIENTISTS SAID THEY LOCATED THE PRESENCE OF AN ASYETUNIDENTIFIED GENE WHICH WHEN INHERITED IN DEFECTIVE FORM TRIGGERS BIOLOGICAL EVENTS THAT LEAD TO COLON CANCER THE RESEARCHERS SAID THEY BELIEVE ABOUT ONE IN 200 PEOPLE CARRIES THE INBORN GENE DEFECT WHICH IS INVOLVED IN 10 TO 15 OF ALL COLONCANCER CASES VICE PRESIDENT GORE'S TOP AIDE MAY MOVE TO THE WHITE HOUSE AS A DEPUTY CHIEF OF STAFF IN AN ATTEMPT TO STRENGTHEN THE CLINTON ADMINISTRATION'S MANAGEMENT ROY NEEL 47 WHO HAS BEEN A GORE ADVISER FOR 15 YEARS IS EXPECTED TO BECOME THE SECOND DEPUTY TO CHIEF OF STAFF MCLARTY THE HOUSE APPROVED A SCALEDBACK VOTER REGISTRATION BILL BY A VOTE OF 259164 THE COMPROMISE MEASURE PERMITS VOTER REGISTRATION BY MAIL OR AT MOTOR VEHICLE OFFICES AND OTHER AGENCIES WITH RULES TO PREVENT COERCION BY OFFICIALS FAVORING ONE PARTY THE SENATE IS EXPECTED TO APPROVE THE BILL ARAB DELEGATES DECIDED TO REMAIN IN WASHINGTON THROUGH NEXT WEEK TO GIVE THE MIDDLE EAST PEACE TALKS A CHANCE TO MAKE FURTHER PROGRESS A SYRIAN OFFICIAL ANNOUNCED THE STATE DEPARTMENT PRAISED THE DECISION TO EXTEND THE TALKS FOR AN ADDITIONAL WEEK THE SENATE AGREED TO REQUIRE LOBBYISTS TO DISCLOSE FINANCIAL BENEFITS PROVIDED TO INDIVIDUAL LAWMAKERS THE SENATORS ADOPTED AN AMENDMENT THAT WOULD REQUIRE LOBBYISTS TO LIST GIFTS OR FINANCIAL FAVORS VALUED AT OVER 20 TO LAWMAKERS KHMER ROUGE GUERRILLAS HAVE ATTACKED A CHINESE ARMY UNIT IN CENTRAL CAMBODIA THE FIRST TIME THE MAOIST FACTION HAS TURNED AGAINST THE NATION THAT BACKED IT FOR DECADES THE REBELS USED ROCKETS MORTARS AND SMALL ARMS AGAINST A CHINESE BASE AND ADJOINING POLISH FACILITY IN KOMPONG THOM PROVINCE TUESDAY A UN OFFICIAL SAID THE WORLD HEALTH ORGANIZATION VOTED 9357 TO REELECT ITS TOP OFFICIAL HIROSHI NAKAJIMA OF JAPAN DESPITE OBJECTIONS FROM THE US AND OTHER BIG DONOR NATIONS THAT HE WAS AN INEFFECTUAL LEADER WHO HAD LOST THE SUPPORT OF WHO'S 6000 EMPLOYEES IRAQ'S SADDAM HUSSEIN CLOSED THE NATION'S BORDERS TO STOP CURRENCY SMUGGLING AND ABOLISHED PREGULF WAR BANKNOTES IN AN EFFORT TO HALT THE IRAQI DINAR'S SLIDE UNDER UN SANCTIONS SEPARATELY KURDISH LEADERS IN PARIS SAID THOUSANDS OF KURDS IN NORTHERN IRAQ HAD FLED THEIR HOMES AFTER IRANIAN CROSSBORDER ARTILLERY ATTACKS A HOUSE PANEL APPROVED A 12 BILLION SUPPLEMENTAL MILITARYSPENDING BILL THAT DEFIES THE CLINTON ADMINISTRATION'S DEMANDS FOR OFFSETTING SAVINGS FROM THE CURRENT PENTAGON BUDGET GUNMEN SURROUNDED A POLICE TRUCK IN SOUTH AFRICA AND OPENED FIRE KILLING FOUR BLACK OFFICERS AND WOUNDING FIVE OTHERS IN A CALL TO A NEWS ASSOCIATION A MAN CLAIMING TO SPEAK FOR THE BLACK AZANIAN PEOPLE'S LIBERATION ARMY SAID THE GROUP WAS RESPONSIBLE ITS MEMBERS OPPOSE TALKS BETWEEN BLACKS AND THE WHITEMINORITY GOVERNMENT DIED IRVING HOWE 72 AUTHOR AND CRITIC WHOSE BOOKS INCLUDED WORLD OF OUR FATHERS A CHRONICLE AND COMMENTARY ON JEWISH IMMIGRANT LIFE IN AMERICA IN NEW YORK OF A RUPTURED AORTA 9305060079 930506 CREDIT RATINGS MCI COMMUNICATIONS CORP WASHINGTON STANDARD & POOR'S CORP UPGRADED ITS RATINGS ON ABOUT 33 BILLION OF THIS TELECOMMUNICATIONS COMPANY'S LONGTERM DEBT RAISING SENIOR DEBT TO TRIPLEBPLUS FROM TRIPLEB S&P SAID THE UPGRADE REFLECTS THE IMPROVING TREND IN MCI'S EARNINGS AND CASH FLOW BECAUSE OF MARKET SHARE GROWTH IT SAID MCI NOW HAS ABOUT 18 OF THE US LONGDISTANCE MARKET UP FROM ABOUT 14 THREE YEARS AGO CAPITAL SPENDING IS EXPECTED TO INCREASE TO ABOUT 16 BILLION IN 1993 FROM 14 BILLION IN 1992 BUT STABILIZE IN THE FUTURE S&P SAID 9305060078 930506 BUSINESS BRIEF AMRE INC LOWER FEE IS NEGOTIATED FOR USE OF THE SEARS NAME IN AN EFFORT TO IMPROVE PROFIT MARGINS AMRE INC SAID IT NEGOTIATED A LOWER LICENSING FEE FOR THE USE OF THE SEARS ROEBUCK & CO NAME ON ITS PRODUCTS MR VANECKO SAID THE DALLAS COMPANY HAD SOUGHT THE REDUCTION FOR SOME TIME BECAUSE ITS EXPENSES WERE INCREASING 9305060077 930506 FORGERY OF A PAINTING BY BOTERO THE DANCERS' NEARLY WALTZES ONTO AUCTION BLOCK AT CHRISTIE'S BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LATIN AMERICAN ARTIST FERNANDO BOTERO IS SO HOT RIGHT NOW THAT CHRISTIE'S INTERNATIONAL PLC THE BIG AUCTION HOUSE IS STAGING A SPECIAL SALE DEVOTED TO MR BOTERO'S WORKS MAY 17 GRACING THE COVER OF THE AUCTION CATALOG IS A PAINTING OF A MONSTROUSLY CORPULENT COUPLE THE DANCERS ESTIMATED TO SELL FOR 400000 TO 500000 UNFORTUNATELY IT'S A FAKE EMBARRASSED CHRISTIE'S HAS QUIETLY YANKED THE WORK FROM THE UPCOMING BOTERO SALE WE HAVE REQUESTED PERMISSION FROM THE OWNER TO HAVE IT DESTROYED SAYS LISA PALMER HEAD OF CHRISTIE'S LATIN AMERICAN PAINTINGS DEPARTMENT MR BOTERO A COLOMBIAN ARTIST FAMED FOR HIS STRIKING PAINTINGS AND SCULPTURES OF HUGELY INFLATED FIGURES IS ONE OF A HANDFUL OF ARTISTS WHOSE PRICES HAVE LIFTED ABOVE 1 MILLION AMID THE METEORIC RISE OF THE LATIN AMERICAN ART MARKET WORKS BY SUPERHOT ARTISTS SUCH AS MR BOTERO DIEGO RIVERA RUFINO TAMAYO AND FRIDA KAHLO ARE RIDING THE LATIN AMERICAN ART BOOM TO RECORD PRICES LAST NOVEMBER A BROTHEL SCENE PAINTED BY MR BOTERO SOLD FOR 15 MILLION A RECORD FOR THE ARTIST AT AUCTION BUT NOW THAT HIS WORKS ARE FETCHING IMPORTANT PRICES COMPLAINS AN ANGRY MR BOTERO ANYTHING THAT SAYS BOTERO' GOES ON SALE WHERE DID CHRISTIE'S GO WRONG THE FAKE PAINTING SIGNED AND DATED BOTERO '82 IN THE LOWER RIGHTHAND CORNER WAS CONSIGNED TO THE CHRISTIE'S SALE SIX WEEKS AGO BY A MEXICAN COLLECTOR AFTER VIEWING A SLIDE OF THE ARTWORK MS PALMER SAID SHE DECIDED TO SHOWCASE IT IN THE SPECIAL SALE OF 11 BOTERO PAINTINGS AND FEATURE THE ARTWORK ON THE COVER OF THE AUCTION CATALOG FOR THE SALE MS PALMER SAID THE CONSIGNOR WAS AN ESTABLISHED CLIENT OF CHRISTIE'S WITH A SIZABLE COLLECTION AND SHE ASSUMED IT WAS THE ACTUAL THE DANCERS A WELLKNOWN BOTERO PAINTING WHICH HAS BEEN REPRODUCED IN EXHIBITION CATALOGS OF THE ARTIST'S WORK MS PALMER SAID SHE BELIEVES THE CONSIGNOR THOUGHT THIS BOTERO WAS GENUINE THE REAL PAINTING IS ACTUALLY OWNED BY JERRY LINDZON A COCONUT GROVE FLA ART COLLECTOR IN MIDAPRIL WHEN MS PALMER TRAVELED TO MEXICO TO ACTUALLY SEE THE PAINTING AND OTHER WORKS BEING PUT UP FOR SALE AT CHRISTIE'S UPCOMING LATIN AMERICAN SALES SHE REALIZED IT WAS SUBSTANTIALLY LARGER THAN THE GENUINE THE DANCERS AND WAS A FAKE OTHER THAN THE SIZE THOUGH THERE WAS NOTHING WRONG WITH IT THAT WOULD HAVE ALERTED EXPERTS EARLIER TO THE FORGERY SHE SAYS MR BOTERO DISAGREES I WAS SURPRISED THAT THIS WAS ACCEPTED AS ONE OF MY WORKS BECAUSE IT'S A VERY VULGAR COPY THERE HAVE BEEN SO MANY FAKES OF MY WORKS WHAT'S NEW IS THAT AN AUCTION HOUSE WILL TAKE THEM HE SAYS OF COURSE HE'S DISTURBED I WOULD BE TOO SAYS MS PALMER WHILE SHE HAS PREVIOUSLY SEEN A HALF DOZEN BOTERO FORGERIES THIS FORGER HAS A HIGH LEVEL OF SKILL THAT IS QUITE DISTURBING SHE SAYS MR BOTERO SAYS THAT HE AND COLLECTORS OF HIS WORK HAVE BECOME THE VICTIMS OF THREE SEPARATE FORGERS OR GROUPS OF FORGERS APPARENTLY WORKING OUT OF PARIS VENEZUELA AND MIAMI ONE OF THE DEAD GIVEAWAYS OF A BOTERO FAKE HE SAYS IS THAT THE FORGERS DUPLICATE HIS COLORS BUT USE ONLY ONE LAYER OF PAINT WHILE HE PAINTS SEVERAL LAYERS OF DIFFERENT COLORS TO ACHIEVE A CERTAIN COLOR THE INTERNATIONAL FOUNDATION FOR ART RESEARCH A NEW YORK CLEARINGHOUSE FOR INFORMATION ON ART FORGERIES AND THEFTS SAID IT ISN'T SEEING AN INCREASE IN BOTERO FAKES BUT ANY IMPROVING SECTOR OF THE ART MARKET NORMALLY BECOMES A TARGET FOR FORGERS A FOUNDATION EXECUTIVE SAYS THE BOOM IN FORGERIES ALSO CAME ON THE HEELS OF MR BOTERO'S BLOCKBUSTER OUTDOOR SCULPTURE SHOW ON PARIS'S CHAMPSELYSEES THIS YEAR AND AN ACCOMPANYING RETROSPECTIVE AT THE GRAND PALAIS MUSEUM THE ECONOMIC BOOM IN MEXICO AND SOME OTHER SOUTH AMERICAN COUNTRIES HAS HELPED TO PROPEL THE PRICES OF LATIN AMERICAN ART SOTHEBY'S HOLDINGS INC'S MAJOR EVENING SALE OF LATIN AMERICAN ART LAST NOVEMBER TOOK IN 14 MILLION MORE THAN THE TOTAL SALES OF US CONTEMPORARY ARTISTS SUCH AS ANDY WARHOL WILLEM DE KOONING AND ROBERT RAUSCHENBERG AT SOTHEBY'S THIS WEEK CHRISTIE'S HOLDS THE PRICE RECORD FOR A WORK BY A LATIN AMERICAN ARTIST IN NOVEMBER 1991 A 1942 DIEGO RIVERA PORTRAIT OF A MEXICAN WOMAN BURDENED WITH A HUGE BASKET OF FLOWERS BROUGHT 2970000 MS PALMER SAYS COLLECTORS SHOULDN'T LOSE CONFIDENCE IN THE LATIN AMERICAN MARKET AND IN BOTERO'S WORKS ON THE BASIS OF THIS FAKE THE LATIN AMERICAN ART MARKET REMAINS STRONG AND SENSIBLE SHE SAYS WHILE CHRISTIE'S DOESN'T HAVE THE RIGHT UNDER US LAW TO DESTROY THE FAKE SHE SAYS THE OWNER HAS BEEN CONTACTED ABOUT DOING SO IN THE MEANTIME MR BOTERO HAS BEEN INVITED TO SEE IT AND TO WRITE ON THE BACK THAT HE DISCLAIMS IT AS HIS WORK RALPH LERNER A NEW YORK ATTORNEY SPECIALIZING IN ART LAW SAYS IT'S VERY RARE AND BECOMING EVEN MORE SO FOR MAJOR AUCTION HOUSES TO SELL FAKES THEY GUARANTEE WORKS SOLD WITH SOME DISCLAIMERS AS LONG AS THEY WERE PRODUCED BEFORE 1870 FOR FIVE YEARS AFTER THE SALE AND AUCTION HOUSES GENERALLY DO CONSIDERABLE DUE DILIGENCE INTO THE AUTHENTICITY OF A WORK HE SAYS CHRISTIE'S INTERNATIONAL PLC GUARANTEES THE AUTHENTICITY OF WORKS IT SELLS FOR FIVE YEARS AS LONG AS THEY WERE PRODUCED AFTER 1870 AN ARTICLE YESTERDAY INCORRECTLY SAID THE GUARANTEE APPLIED TO WORKS PRODUCED BEFORE 1870 ALSO MAGAZINE PUBLISHER FRANCES LEAR WAS A LOSING BIDDER FOR A PAINTING BY JACKSON POLLOCK AT A RECENT CHRISTIE'S SALE AN ARTICLE WEDNESDAY INCORRECTLY SAID MS LEAR WAS A LOSING BIDDER FOR A ROY LICHTENSTEIN PAINTING 9305060076 930506 BUSINESS BRIEF BAMBERGER POLYMERS INC CONCERN CHANGES NAME TO INTERSYSTEMS INC BAMBERGER POLYMERS INC SAID IT CHANGED ITS NAME TO INTERSYSTEMS INC AFTER COMPLETING THE 16 MILLION SALE OF ITS DISTRIBUTION AND TRADING ASSETS TO A GROUP OF SENIOR MANAGEMENT INTERSYSTEMS WILL TRADE ON THE AMERICAN STOCK EXCHANGE UNDER THE SYMBOL II AND WILL CONSIST OF CHEMTRUSION A UNIT OF THE FORMER PUBLICLY TRADED BAMBERGER WHICH SPECIALIZES IN CUSTOM COMPOUNDING OF RESINS CHEMTRUSION WILL ADD A THIRD PRODUCTION LINE COSTING 13 MILLION THE COMPANY SAID NOTING THAT THE NEW LINE IS EXPECTED TO INCREASE CHEMTRUSION'S PRODUCTION CAPACITY BY 50 BAMBERGER BASED IN LAKE SUCCESS NY DECIDED TO CHANGE ITS NAME AFTER AGREEING TO ACQUIRE INTERSYSTEMS AN OMAHA NEB MAKER OF SPECIALTY EQUIPMENT USED IN HANDLING MATERIALS THE 33 MILLION ACQUISITION APPROVED BY SHAREHOLDERS IN MARCH IS EXPECTED TO BE COMPLETED WITHIN A FEW MONTHS A SPOKESMAN SAID 9305060075 930506 BUSINESS BRIEF EL PASO REFINERY LP SELECTED ASSETS ARE SOLD OFF AS PART OF REORGANIZATION EL PASO REFINERY LP SAID CERTAIN OF ITS REFINERY ASSETS WERE SOLD FOR 100 MILLION IN A NONJUDICIAL FORECLOSURE SALE THE ASSETS WERE SOLD TO NEW YORK LIFE INSURANCE CO MELLON BANK JOHN HANCOCK MUTUAL LIFE INSURANCE CO AND ITS UNIT JOHN HANCOCK VARIABLE LIFE INSURANCE CO AS WELL AS CIT GROUP/CAPITAL EQUIPMENT FINANCING INC A UNIT OF CIT GROUP HOLDINGS INC THE ASSETS CONSISTED OF REAL PROPERTY MORTGAGED AND PERSONAL PROPERTY PLEDGED BY THE PARTNERSHIP TO THE ACQUIRING COMPANIES UNDER A MORTGAGE AGREEMENT THE TRANSACTION SATISFIES EL PASO'S AGGREGATE DEBT OF 115 MILLION OWED TO THE PURCHASERS THE SALE IS PART OF A SETTLEMENT AND COMPROMISE AGREEMENT APPROVED BY THE US BANKRUPTCY COURT THAT HAS BEEN OVERSEEING EL PASO SINCE OCTOBER 9305060074 930506 BUSINESS BRIEF MONEY STORE INC PROFIT REVENUE BOTH ROSE BY 29 IN THE FIRST QUARTER MONEY STORE INC'S NET INCOME ROSE 29 DURING THE FIRST QUARTER AS THE COMPANY TOOK ADVANTAGE OF A WIDENING INTEREST RATE MARGINS THE UNION NJ FINANCIAL SERVICES COMPANY REPORTED NET INCOME OF 41 MILLION OR 51 CENTS A SHARE COMPARED WITH 32 MILLION OR 40 CENTS A SHARE REVENUE ROSE 29 TO 442 MILLION FROM 344 MILLION THE SERVICED LOAN PORTFOLIO ROSE 9 IN THE QUARTER TO 301 BILLION WHILE LOAN ORIGINATIONS FELL 11 TO 219 MILLION THE COMPANY SAID CONVERSION TO A CENTRALIZED HOMEEQUITY LOAN COLLECTION SYSTEM FROM 10 REGIONAL CENTERS WOULD RESULT IN AN INCREASE IN DELINQUENCY DURING THE CONVERSION PROCESS WHICH IS EXPECTED TO BE COMPLETED DURING MID1993 THE COMPANY ALSO ORIGINATES GUARANTEED STUDENT LOANS AS WELL AS GUARANTEED SMALL BUSINESS LOANS MONEY STORE STOCK FELL 50 CENTS TO CLOSE AT 1725 A SHARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9305060073 930506 BUSINESS BRIEF NORANDA INC TORONTO FIRM TO CUT OUTPUT OF ZINC WEAK MARKET CITED NORANDA INC SAID IT WILL FURTHER CUT ITS ZINC PRODUCTION THIS YEAR BECAUSE OF WEAK MARKETS FOR THE METAL NORANDA A DIVERSIFIED NATURAL RESOURCES CONCERN IN TORONTO SAID IT NOW EXPECTS TO PRODUCE SOME 500000 METRIC TONS OF ZINC THIS YEAR DOWN FROM 573000 IN 1992 WHICH REPRESENTED ABOUT 10 OF THE WESTERN WORLD'S OUTPUT LAST YEAR IN FEBRUARY THE COMPANY SAID IT EXPECTED 1993 PRODUCTION OF ABOUT 530000 METRIC TONS OF ZINC A METRIC TON EQUALS 22046 POUNDS THE LATEST CUTBACKS REFLECT ADDITIONAL PLANS TO SHUT TEMPORARILY SOME OF THE COMPANY'S ZINC OPERATIONS IN CANADA INCLUDING A FOURWEEK SHUTDOWN AT THE COMPANY'S BIG BRUNSWICK MINING & SMELTING CORP SUBSIDIARY IN NEW BRUNSWICK 9305060072 930506 MARKETING & MEDIA CABLETV STOCKS TUMBLE AS THE EFFECT OF FCC'S NEW RULES BECOMES CLEARER BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION'S NEW RULES REREGULATING CABLE TELEVISION RATES SENT CABLE STOCKS TUMBLING AS THEIR IMPACT ON COMPANIES BECAME CLEARER CABLETV STOCK PRICES SOARED TUESDAY AFTER SOME FINANICAL ANALYSTS MISTAKENLY INTERPRETED THE RULES WHICH HAD BEEN RELEASED LATE MONDAY AS LESS STRINGENT THAN EXPECTED MANY CABLE COMPANIES AND CABLE INDUSTRY ANALYSTS SAY THEY WILL BE EXAMINING THE 500PAGE DOCUMENT FOR SEVERAL MORE DAYS TO ASSESS HOW MUCH OF A HIT INDIVIDUAL COMPANIES AND THE INDUSTRY MIGHT TAKE CABLEVISION SYSTEMS WHICH CLIMBED 3 5/8 TUESDAY FELL 2 1/2 TO 30 3/4 AFTER A 3 1/8 JUMP TUESDAY TIME WARNER SLIPPED 2 TO 34 1/8 TELECOMMUNICATIONS INC CLASS A SHARES DROPPED 1 3/4 TO 19 3/4 AFTER RISING 2 1/2 TUESDAY AND COMCAST DECLINED 1 1/4 TO 19 3/8 AFTER SURGING 2 1/8 A DAY EARLIER THE AGENCY WHICH ADOPTED THE RULES APRIL 1 BUT DIDN'T MAKE THEM PUBLIC UNTIL MONDAY PROMISED MANY CONSUMERS A 10 RATE ROLLBACK BASED ON FEES CABLE TELEVISION COMPANIES CHARGED FOR BASIC AND EXPANDED BASIC SERVICE AS OF SEPT 30 1992 SEVERAL INDUSTRY OFFICIALS SAID THAT CONSUMERS MIGHT SEE SAVINGS OF 150 TO 2 A MONTH AND THAT MIGHT TRANSLATE TO A 5 TO 6 DROP IN CABLE SYSTEMS' REVENUES JAMES P MOONEY PRESIDENT OF THE NATIONAL CABLE TELEVISION ASSOCIATION SAID THE NEW RULES WILL PUT MORE PRESSURE ON THE INDUSTRY TO SOLICIT LOCAL ADVERTISING AND DIVERSIFY INTO RELATED BUT UNREGULATED BUSINESSES THE NEW RULES HE SAID WILL ALSO ENCOURAGE SOME CABLE TV COMPANIES TO SEPARATE POPULAR SATELLITE CHANNELS SUCH AS CNN AND ESPN FROM THE TRADITIONAL PACKAGES OF SERVICES AND PRICE THEM INDIVIDUALLY CABLETV CHANNELS THAT AREN'T PART OF THE BASIC TIER OF PROGRAMMING WHICH IS DEFINED AS INCLUDING BROADCAST PUBLICACCESS GOVERNMENT AND EDUCATIONAL CHANNELS AREN'T SUBJECT TO RATE REGULATION FOR CABLE TELEVISION INVESTORS THE NEXT FEW MONTHS ARE LIKELY TO BE FILLED WITH UNCERTAINTY AS CABLE OPERATORS DETERMINE THE EFFECT ON REVENUES NEW PRICING STRATEGIES AND INVESTMENTS IN THEIR NETWORKS AND THE AGENCY MOVES FORWARD WITH ENFORCEMENT THIS FREEZES THIS INDUSTRY UNTIL WE FIGURE IT OUT AND THE LAWSUITS ARE SETTLED SAID STEPHEN EFFROS HEAD OF THE COMMUNITY ANTENNA TELEVISION ASSOCIATION IN THE MEANTIME HE SAID THE SMALLEST SYSTEMS MAY BE UNABLE TO FILL OUT THE PAPERWORK AND THE NEW RULES MAY PUT SOME SYSTEMS IN DEFAULT ON BANK LOANS MR EFFROS DECLINED TO NAME THOSE SYSTEMS AS FOR THE EARLY EUPHORIA AMONG INVESTORS MR EFFROS SAID THE FINANCIAL ANALYSTS EXAMINED ONLY THE FCC'S CHARTS AND GRAPHS AND THAT TOLD ONLY HALF OF THE STORY INDEED ON FIRST BLUSH THE AGENCY'S BENCHMARK RATES SEEMED TO INDICATE THAT A TYPICAL CABLETV COMPANY WOULD STILL BE ABLE TO CHARGE 20 TO 25 A MONTH FOR EXTENDED BASIC SERVICE ON TUESDAY SEVERAL ANALYSTS DISMISSED THE FCC'S CLAIM ITS NEW RULES WOULD CUT RATES AT THREEQUARTERS OF THE US'S 11000 CABLE SYSTEMS AND ROLLBACKS WOULD TOTAL 1 BILLION INSTEAD THE ANALYSTS SAID THE RULES DIDN'T SEEM AS ONEROUS AS THE INDUSTRY HAD FEARED BY YESTERDAY THEY REALIZED THE CHARTS FOLDED IN CHARGES FOR CONVERTER BOXES AND REMOTE CONTROL UNITS INDICATING CONSUMERS' ACTUAL RATES MIGHT DROP 150 TO 2 A MONTH WHILE THE PICTURE WASN'T AS ROSY AS IT INITIALLY APPEARED ANALYSTS SAID THE FCC MAY SUSTAIN THE BIGGEST HIT THE COST OF IMPLEMENTING THESE RULES IS MINDBOGGLING SAID JOHN REIDY AN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO UNDER THE FCC RULES CITY GOVERNMENTS THE FRONT LINE IN THE REREGULATION PROCESS MUST OBTAIN FCC APPROVAL TO REGULATE BASIC RATES WHILE MANY LOCAL OFFICIALS BELIEVE THE FCC HAS ESTABLISHED AN EASY CERTIFICATION PROCESS THEY AREN'T SURE HOW DIFFICULT IT MIGHT BE TO ASSESS THE CABLETV COMPANIES' RATE FILINGS WHICH ARE BASED ON COMPLICATED CALCULATIONS WE'RE STILL REVIEWING HOW WE MIGHT IMPLEMENT THE FCC'S BENCHMARK APPROACH SAID WILLIAM SQUADRON NEW YORK CITY'S TELECOMMUNICATIONS COMMISSIONER THE FCC TOO IS CONCERNED ABOUT WHAT EFFECT THE NEW RULES MIGHT HAVE ON ITS OWN OPERATIONS NOT ONLY ARE CHALLENGES EXPECTED AS THE AGENCY REVIEWS ITS RULES UNDER A ROUTINE RECONSIDERATION PROCESS BUT CABLE TELEVISION COMPANIES ARE EXPECTED TO TAKE THE AGENCY TO COURT IN ADDITION THE COMMISSION HAS STARTED PROCEEDINGS TO DECIDE WHETHER ITS 10 CAP ON RATE ROLLBACKS SHOULDN'T BE EXPANDED AND TO ESTABLISH PROCEDURES FOR CABLETV COMPANIES THAT WANT THEIR RATES BASED ON THE ACTUAL COSTS OF PROVIDING SERVICE TO GET APPROVAL FOR COSTBASED RATES CABLE COMPANIES WILL HAVE TO GIVE REGULATORS DETAILED COST INFORMATION TO SUPPORT THEIR CLAIMS THE COMMISSION MUST WALK A FINE LINE BETWEEN BEING CONFISCATORY AND INVITING HUNDREDS OF CABLE OPERATORS TO DUMP TRUCKLOADS OF COST DATA ON ITS DOORSTEP SAID WILLIAM JOHNSON DEPUTY CHIEF OF THE AGENCY'S MASS MEDIA BUREAU IT IS IMPORTANT TO MAKE THE PROCESS WORK AND ACCURATELY DETERMINE HOW MANY PEOPLE TRY IT HE SAID 9305060071 930506 COMMODITIES PLATINUM FUTURES TURN AROUND AFTER ROUT GOLD SLIPS BUT IS SUPPORTED BY REPORT OF DEMAND BY WARREN GETLER AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PLATINUM FUTURES PRICES RECOVERED MODESTLY FROM THEIR ROUT TUESDAY AS INVESTORS' INTEREST IN THE PRECIOUSMETALS SECTOR REMAINED FIRM TRADERS AND ANALYSTS SAID ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JULY DELIVERY CLOSED 280 HIGHER AT 38010 AN OUNCE GOLD FOR JUNE DELIVERY SETTLED SLIGHTLY LOWER AT 35550 AN OUNCE DOWN 20 CENTS ON NEW YORK'S COMMODITY EXCHANGE TUESDAY AMID CONCERNS ABOUT FORWARD SELLING BY RUSSIAN PRODUCERS AND WORRIES ABOUT WEAKENING ECONOMIES IN JAPAN AND THE US PLATINUM SKIDDED 930 HAVING BEEN DOWN AT ONE POINT BY AS MUCH AS 16 PLATINUM IS A KEY COMPONENT IN CATALYTIC CONVERTERS AND ALSO IS USED EXTENSIVELY IN JEWELRY BECAUSE OF ITS BROAD INDUSTRIAL APPLICATIONS IT TENDS TO SUFFER DURING PERIODS OF ECONOMIC WEAKNESS YESTERDAY'S TURNAROUND IN PLATINUM FUTURES WAS A REACTION TO OVERSOLD CONDITIONS TUESDAY SAID GEORGE MILLINGSTANLEY AN ANALYST WITH SHEARSON LEHMAN BROTHERS WHILE INDUSTRIAL AND SPECULATIVE DEMAND FOR THE WHITE METAL REMAINS HEALTHY HE SAID THERE ARE REASONS TO QUESTION WHETHER PLATINUM CAN BREAK THROUGH THE KEY 400ANOUNCE RESISTANCE LEVEL ANYTIME SOON BECAUSE OF PLATINUM'S FAILURE TO BREACH 400 IN ITS RECENT SPURT TO A 23MONTH HIGH THERE'S BEEN SOME PROFITTAKING BY THE COMMODITY FUNDS MR MILLINGSTANLEY SAID COMMODITY FUNDS ARE MANAGED POOLS OF INVESTORS' MONEY THERE'S CONCERN THAT THE JAPANESE ECONOMY CONTINUES TO PERFORM SLUGGISHLY THE ANALYST SAID ADDING AND THERE'S REASON TO WORRY JAPAN ACCOUNTS FOR HALF OF WORLD PLATINUM DEMAND A REPORT TUESDAY THAT THE INDEX OF LEADING US INDICATORS PLUNGED 1 IN MARCH ALSO DEPRESSED PLATINUM FUTURES BUT WAS OFFSET IN PART BY A REPORT THE SAME DAY SHOWING HEALTHY GROWTH IN US SALES OF DOMESTICALLY PRODUCED CARS DURING THE LAST TWO WEEKS IN APRIL TRADERS AND ANALYSTS SAID GOLD FUTURES WHICH TRADED IN A NARROW RANGE THE PAST SEVERAL DAYS WERE BUFFETED BY LIGHT PROFITTAKING IN NEW YORK YESTERDAY ON MOSTLY TECHNICAL GROUNDS TRADERS SAID THEY ALSO WERE HURT BY A SLIGHTLY STRONGER DOLLAR AND TRADERS SAID SELLING BY MIDDLE EASTERN INTERESTS WAS DETECTED IN EARLIER TRADING IN HONG KONG GOLD RECEIVED SOME FUNDAMENTAL SUPPORT HOWEVER FROM A REPORT BY A LEADING TRADE GROUP YESTERDAY THAT SAID ASIAN AND MIDDLE EASTERN DEMAND SURGED 36 IN THE FIRST QUARTER TO 447 METRIC TONS THE WORLD GOLD COUNCIL WHICH PROMOTES BULLION ON BEHALF OF INTERNATIONAL PRODUCERS SAID GOLD DEMAND IN CHINA JUMPED 36 TO 95 TONS IN THE FIRST THREE MONTHS OF THIS YEAR THE METAL IS BEING SNAPPED UP FOR JEWELRY PRODUCTION AS WELL AS A HEDGE AGAINST INFLATION TRADERS SAID IN INDIA THE COUNCIL SAID DEMAND SURGED 93 TO 114 TONS JEWELRY AND INVESTMENT DEMAND IN THE MAJOR DEVELOPED MARKETS WAS STAGNANT HOWEVER BECAUSE OF POOR ECONOMIC PERFORMANCE IT SAID THE SURGE IN FIRSTQUARTER ASIAN BUYING CAME AMID A SLUMP IN GOLD PRICES TO SEVENYEAR LOWS AROUND 330 BEFORE THE RECENT RALLY TO LEVELS ABOVE 350 TRADERS NOTED THOSE RECENT HIGHER LEVELS IN FACT HAVE BROUGHT ABOUT A SHARP REDUCTION IN PRICESENSITIVE SOUTHEAST ASIAN BUYING SAID TONY WARWICKCHING AN ANALYST WITH COMMODITIES RESEARCH UNIT LTD A LONDONBASED CONSULTING GROUP TRADERS SAID THEY WERE EAGERLY AWAITING THE RETURN OF JAPANESE DEALERS TO THE GOLD CASH AND FUTURES MARKETS TODAY FOLLOWING THE END OF A LONG MARKET HOLIDAY IN JAPAN IN OTHER COMMODITIES MARKETS GRAINS AND SOYBEANS SOYBEAN FUTURES PRICES ROSE ON RUMORS OF CHINESE DEMAND A DELEGATION FROM CHINA IS SCHEDULED TO MEET WITH US AGRICULTURE DEPARTMENT OFFICIALS IN WASHINGTON NEXT WEEK THE CHINESE OFFICIALS ARE SEEKING MOSTFAVOREDNATION STATUS FOR THEIR COUNTRY THERE WERE RUMORS AT THE CHICAGO BOARD OF TRADE YESTERDAY THAT CHINA HAD BOUGHT 30000 METRIC TONS OF US SOYBEANS AND PLANNED TO BUY MORE TRADERS ARE ALSO PREPARING FOR A USDA SUPPLYANDDEMAND REPORT DUE OUT TUESDAY WHICH IS EXPECTED TO SHOW HISTORICALLY TIGHT STOCKS OF SOYBEANS SOYBEANS FOR JULY DELIVERY ROSE 4 1/4 CENTS TO SETTLE AT 5955 A BUSHEL ENERGY CRUDE OIL AND PETROLEUM PRODUCT PRICES ROSE IN LIGHT TRADING ALTHOUGH THERE WAS LITTLE FUNDAMENTAL NEWS TO SPUR ACTIVITY TRADERS SAID PRICES WERE DEPRESSED EARLY IN THE SESSION BY A SLIGHTLY BEARISH REPORT ON US INVENTORY LEVELS RELEASED LATE TUESDAY BY THE AMERICAN PETROLEUM INSTITUTE BUT TRADERS SAID MARKET PARTICIPANTS OVERCAME THE EARLY SELLING PRESSURE AS LOCAL PLAYERS AND REFINERS STEPPED IN AS BUYERS LIGHT SWEET CRUDE OIL FOR JUNE DELIVERY SETTLED AT 2046 A BARREL UP SEVEN CENTS ON THE NEW YORK MERCANTILE EXCHANGE JUNE GASOLINE SETTLED AT 6171 CENTS A GALLON UP 012 CENT MEANWHILE NATURAL GAS FUTURES FELL IN A CORRECTION FROM A RECENT RISE 9305060070 930506 MARKETING BRIEF DR PEPPER/SEVENUP COS MARKET TEST IS LAUNCHED FOR SPARKLING WATER DRINK DR PEPPER/SEVENUP COS LAUNCHED A MAJOR MARKET TEST OF A NEW SPARKLING WATER DRINK JOINING RIVALS PEPSICO INC AND COCACOLA CO IN A RACE TO DEVELOP SOCALLED NEW AGE SOFT DRINKS DR PEPPER'S NEW WELCH'S BRAND SPARKLING WATER REFRESHERS MARKETED UNDER AN AGREEMENT WITH WELCH FOODS INC CONCORD MASS WILL COME IN RASPBERRY CHERRY AND CRANBERRY PACKAGED IN A CLEAR GLASS BOTTLE WITH A MOLDED WAVE TO CREATE THE IMAGE OF A WATERFALL THE BEVERAGE COMPANY SAID THE NEW BRAND WILL COMPETE IN THE FASTGROWING NEW AGE BEVERAGE CATEGORY AGAINST A VARIETY OF NEW CLEAR NONCOLAS INCLUDING PEPSI'S SPLASH A FRUITFLAVORED SPARKLING WATER NOW BEING TESTED ANALYST TERRY BIVENS OF ARGUS RESEARCH SAID MARKETING IS THE KEY TO SUCCEEDING IN THE INCREASINGLY CROWDED NEW AGE MARKET YOU HAVE TO CONVEY THAT THE BEVERAGE IS NOT TOOTHROTTING THAT IT IS HEALTHFUL AND THAT IT HAS FAR LESS SUGAR THAN REGULAR COLAS 9305060069 930506 CAN TEXACO WIN A BATTLE IF THE LORD IS ON THE OTHER SIDE GASSTATION OWNER SAYS GOD CALLS FOR SABBATH CLOSING DESPITE COMPANY'S RULES BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL TEXACO CORP HAS A DIVINELY INSPIRED MESS ON ITS HANDS HERE THESE DAYS TEXACO'S TROUBLES BEGAN WHEN BARRY DAVIS A DEVOUT CHRISTIAN FUNDAMENTALIST WHO RUNS THREE TEXACO SERVICE STATIONS IN OREGON SAYS HE HAD A TALK WITH THE ALMIGHTY MR DAVIS 50 YEARS OLD CREDITS GOD FOR MAKING HIM TEXACO'S ALLTIME TOP GASOLINE PUMPER NOT TO MENTION HELPING HIM EARN NEARLY 470000 LAST YEAR TEXACO'S STAR SAYS GOD TOLD HIM TO SHUT HIS STATIONS EACH WEEK FOR THE 24HOUR BIBLICAL SABBATH SUNSET FRIDAY TO SUNSET SATURDAY THE CLOSINGS BEGAN ON JAN 1 THAT ALSO HAPPENS TO BE PRIME GASPUMPING TIME BUT MR DAVIS SAYS HE WAS SURE TEXACO WOULD UNDERSTAND TEXACO IS THE MOST RELIGIOUS OIL COMPANY IN THE NATION HE DECLARES THAT MAY BE DEBATABLE THE COMPANY SAYS MR DAVIS'S UPLIFTING GESTURE CAUSED A 26 SLIDE IN HIS STATIONS' JANUARY SALES TEXACO SUED MR DAVIS IN FEDERAL COURT IN PORTLAND ORE LAST WEEK DEMANDING HE PAY LESS ATTENTION TO THE ALMIGHTY AND MORE TO HIS CONTRACT WHICH CALLS FOR A SEVENDAYAWEEK 24HOURADAY OPERATION THE COMPANY OBTAINED A COURT ORDER DIRECTING MR DAVIS TO STAY OPEN ON THE SABBATH MR DAVIS INSISTING THAT HE CAN EASILY MAKE UP LOST SALES DURING THE OTHER SIX DAYS IGNORED THE ORDER FRIDAY NIGHT PRECISELY AT 817 AS THE SUN SLIPPED BELOW THE HORIZON HERE HE SLAPPED FOURFOOTHIGH SIGNS IN HIS GAS STATION WINDOWS SAYING IN TEXACO RED CLOSED FOR THE SABBATH BOTTOM LINE MR DAVIS SAYS I WIN AND GOD WINS THOUGH MR DAVIS IS FIGHTING A ONEMAN BATTLE BIGGER ISSUES ARE AT STAKE CIVILLIBERTIES EXPERTS SAY WORKPLACE CONFLICTS INVOLVING RELIGIOUS BELIEFS ARE GROWING ACCORDING TO MITCHELL TYNER AN ATTORNEY FOR THE SEVENTH DAY ADVENTIST CHURCH EACH DAY TWO OR THREE ADVENTISTS ARE DENIED OR LOSE JOBS BECAUSE THEY AREN'T ALLOWED TO WORK ON THE SABBATH HIS CASELOAD INVOLVING SUCH INCIDENTS HAS MORE THAN DOUBLED IN THE LAST 10 YEARS I THINK A LOT HAS TO DO WITH THE ATTITUDE OF THE '80S THAT WAS MORE ORIENTED TO THE FREE MARKET AND LESS AMENABLE TO EMPLOYEES' RELIGIOUS NEEDS HE SAYS THE ADVENTISTS WHO CLAIM A MILLION MEMBERS IN THE US HAVE OFFERED TO BACK MR DAVIS WHO SAYS HE IS A NONDENOMINATIONAL CHRISTIAN WHEN I SEE A LAWSUIT THAT PARALLELS OUR PROBLEM I'M INTERESTED MR TYNER SAYS MR DAVIS WILL NEED PLENTY OF HELP IN A COURT FILING HE CLAIMS TEXACO'S DEMAND AMOUNTS TO INVOLUNTARY SERVITUDE FOR HIS RELIGIOUS BELIEFS BUT LEGAL EXPERTS SAY MR DAVIS ISN'T COVERED BY THE 1964 FEDERAL CIVIL RIGHTS ACT WHICH PROTECTS EMPLOYEES AGAINST RELIGIOUS DISCRIMINATION BY EMPLOYERS THE PROBLEM MR DAVIS IS NOT AN EMPLOYEE HE IS A CONTRACTOR WHO LEASES THE LAND FROM TEXACO IN THE EYES OF THE LAW HE MIGHT AS WELL BE GENERAL MOTORS SAYS LEWIS MALTBY DIRECTOR OF THE AMERICAN CIVIL LIBERTIES UNION'S WORKPLACERIGHTS OFFICE IN NEW YORK CITY I DON'T THINK HE HAS A LEGAL LEG TO STAND ON MR DAVIS HAS COUNTERED THAT WHILE THE CIVIL RIGHTS ACT MAY NOT COVER TEXACO HIS RELIGIOUS FREEDOM WAS VIOLATED WHEN FEDERAL JUDGE HELEN FRYE ORDERED HIM TO REOPEN LAST WEEK A FEDERAL COURT CAN'T ENFORCE A PRIVATE AGREEMENT IN A WAY THAT VIOLATES A CONTRACTOR'S CONSTITUTIONAL RIGHT SAYS DAVID SHANNON MR DAVIS'S ATTORNEY WE FEEL THE FEDERAL ACTION OCCURRED WHEN THE JUDGE ORDERED MR DAVIS TO BE OPEN ON THE SABBATH MR SHANNON SAYS JUDGE FRYE REJECTED THAT ARGUMENT MONDAY WHILE GRANTING TEXACO A PRELIMINARY INJUNCTION AGAINST MR DAVIS'S SABBATH CLOSING THE JUDGE SAID THE FIGHT IS SIMPLY A DISPUTE BETWEEN THE OIL COMPANY AND MR DAVIS MR SHANNON SAYS HE WILL APPEAL MEANWHILE OFFICIALS AT TEXACO'S WHITE PLAINS NY HEADQUARTERS ARE NERVOUSLY MONITORING MR DAVIS'S REBELLION AND PRAYING IT DOESN'T SNOWBALL INTO SOMETHING BIGGER HOPEFULLY THIS WON'T TURN INTO A PUBLIC RELATIONS PROBLEM SAYS A CORPORATE PUBLIC RELATIONS OFFICIAL TEXACO SAYS THAT WHILE MR DAVIS HAS A RIGHT TO HIS RELIGIOUS BELIEFS THE COMPANY ALSO HAS A CONTRACTUAL RIGHT TO TERMINATE HIS CONTRACTS THIS IS A CONTRACT DISPUTE AND HAS NOTHING TO DO WITH RELIGIOUS BELIEFS SAYS THE COMPANY'S PUBLIC RELATIONS OFFICIAL WHO ADDS QUICKLY I'D CERTAINLY LIKE TO BE TALKING ABOUT OTHER THINGS INDEED THE OIL COMPANY IS CLEARLY PERPLEXED BY MR DAVIS'S STAND DEFENDANT HAS REPEATEDLY CLAIMED HE HAS DIRECT COMMUNICATION WITH GOD ABOUT HIS CLOSURES TEXACO'S ATTORNEYS COMPLAIN IN THEIR FEDERALCOURT FILING THE COMPANY SAYS IT SUGGESTED ALTERNATIVES TO SHUTTING DOWN MR DAVIS'S STATIONS SUCH AS DONATING HIS PROFITS TO A RELIGIOUS CAUSE MR DAVIS SAID HE ASKED GOD ABOUT THAT AND GOD SAID IT WAS UNACCEPTABLE THE COMPANY'S AFFIDAVIT SAYS TEXACO ALSO WORRIES THAT MR DAVIS COULD BECOME A SORT OF PIED PIPER AMONG HIS 1122 FELLOW DEALERS RELATIONS BETWEEN BIG OIL COMPANIES AND RETAIL DEALERS HAVE LONG BEEN EDGY AS THE COMPANIES HAVE SOUGHT TO TAKE OVER A LARGER SHARE OF RETAILING OPERATIONS IN RECENT YEARS TEXACO'S UNEASINESS MAY BE JUSTIFIED COMPANY OFFICIALS ACKNOWLEDGE THEY HAVE ALREADY STARTED GETTING LETTERS FROM CUSTOMERS SUPPORTING MR DAVIS'S STAND AND THE LOOMING DISAPPROVAL OF THE ADVENTISTS WITH A MILLION US MEMBERS COULD CUT INTO SALES ELSEWHERE MR DAVIS'S DEALER COLLEAGUES ARE ALSO LINING UP MICHAEL SHERLOCK EXECUTIVE DIRECTOR OF THE OREGON GASOLINE DEALERS ASSOCIATION WHICH REPRESENTS OPERATORS OF 1800 GASOLINE OUTLETS IN THE STATE SAYS MR DAVIS'S AGREEMENT WITH GOD MAY BE A BIT UNUSUAL BUT WE HAVE PLENTY OF DEALERS WHO WOULD LIKE TO CLOSE ON SUNDAYS BECAUSE OF THEIR OWN RELIGIOUS BELIEFS MR DAVIS'S CASE COULD ALSO SET A PRECEDENT FOR OTHER DEALERS WHO DON'T WANT TO STAY OPEN ALL NIGHT WHEN TRAFFIC IS LIGHT MR SHERLOCK SAYS MR DAVIS SEEMS CONTENT TO STAY ABOVE THE FRAY IN HIS HILLTOP HOUSE HERE WITH A DISCREET WOODEN CROSS ON THE DOOR AND PHOTOS OF HIS EIGHT CHILDREN SCATTERED THROUGH THE LIVING ROOM HE SAYS TEXACO KNOWS FULL WELL THAT GOD IS ON HIS SIDE FOR YEARS HE SAYS COMPANY OFFICIALS PESTERED HIM TO TELL THEM HOW HE WAS ABLE TO ACHIEVE SUCH STRATOSPHERIC SALES MR DAVIS'S STATIONS ROUTINELY OUTPERFORM THE COMPANY'S OWN PUMPS AND HE HAS A SHEAF OF CORPORATE COMMENDATIONS AND THANKYOUS FROM TEXACO OFFICIALS LAST YEAR MR DAVIS SAYS HE DISCLOSED HIS SECRET DURING A LUNCH WITH TEXACO OFFICIALS I TOLD THEM GOD TAKES CARE OF ME AND MINE EVERYTHING I'VE ASKED FOR I'VE GOTTEN ANOTHER REVELATION MADE IN A DIFFERENT CONVERSATION WITH TEXACO OFFICIALS GOD ONCE APPEARED IN HIS GAS STATION'S SERVICE BAY IN THE FORM OF A GREEN CLOUD ALONG WITH THUNDER AND LIGHTNING HE SAYS MR DAVIS OFTEN DISCUSSED GOD WITH TEXACO OFFICIALS AND HE ADDS WE'RE NOT TALKING AN UNKNOWN QUALITY HERE BUT WHEN HE ANNOUNCED HIS DECISION TO SHUT HIS PUMPS FOR THE SABBATH MR DAVIS SAYS HE BECAME A PARIAH FOR YEARS I WAS A HERO HE SAYS NOW SUDDENLY THEY'RE TREATING ME LIKE THE WACKO FROM WACO 9305060068 930506 BUSINESS BRIEF ANGELES PARTICIPATING MORTGAGE TRUST POSTS LOSS FOR 1992 WARNS PAYOUT WILL BE CUT ANGELES PARTICIPATING MORTGAGE TRUST REPORTED A 546000 LOSS FOR 1992 WARNED THAT DIVIDENDS WILL LIKELY BE CUT AND SAID ITS OUTSIDE AUDITORS ARE EXPECTED TO INCLUDE A CAUTIONARY NOTE IN THEIR ANNUAL REVIEW THE LOSS EQUALED 21 CENTS A SHARE AND REFLECTED A 5 MILLION RESERVE ESTABLISHED FOR LOAN LOSSES IN 1991 THE TRUST HAD NET INCOME OF 48 MILLION OR 187 A SHARE THE TRUST'S ASSETS ARE MOSTLY MORTGAGES ON THREE FACTORY OUTLET MALLS OWNED BY ANGELES CORP WHICH ENTERED CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS ON MONDAY THE TRUST SAID IT HASN'T RECEIVED PAYMENTS DUE FROM THE THREE ANGELES CORP PROPERTIES IN EITHER MARCH OR APRIL NOR HAS ANGELES CORP MADE GOOD ON A GUARANTY TO CONTRIBUTE TO ANY SHORTFALL ON DIVIDENDS PAYABLE TO TRUST STOCKHOLDERS AT A 2 ANNUAL RATE THE TRUST DIDN'T ELABORATE ABOUT THE EMPHASIS PARAGRAPH THAT IT EXPECTS TO BE INCLUDED IN THE AUDIT LETTER FROM DELOITTE & TOUCHE A SPOKESWOMAN SAID THE LETTER NOTES ANGELES CORP'S PROBLEMS 9305060067 930506 WHAT'S NEWS BUSINESS AND FINANCE THE TREASURY UNVEILED PLANS TO SLASH ITS SALES OF 30YEAR BONDS AND TO STOP SELLING SEVENYEAR NOTES IN A BID TO CUT COSTS THE GOVERNMENT WILL INSTEAD SELL MORE DEBT WITH MATURITIES OF THREE YEARS OR LESS WHICH CARRIES LOWER INTEREST RATES LONGTERM PRICES EDGED UP ON THE NEWS WHILE PRICES OF SHORTERTERM ISSUES FELL SLIGHTLY THE ECONOMY IMPROVED SOMEWHAT IN LATE MARCH AND LAST MONTH AFTER BAD WEATHER KNOCKED IT OFF TRACK A FED SURVEY SUGGESTED IN CONTRAST WITH RECENT SIGNS OF A STALLING RECOVERY BUT THE MODEST RISE IN ECONOMIC ACTIVITY STILL ISN'T CREATING MANY JOBS CLINTON'S BUSINESS TAX PROPOSALS ATTRACTED CRITICISM AT A HOUSE HEARING THE WAYS AND MEANS PANEL IS EXPECTED TO ALTER SOME OF THE PROVISIONS THE LAWMAKERS ALSO PREDICT THEY WILL KILL THE PROPOSED INVESTMENT CREDIT HOME PRICES CLIMBED 51 IN THE FIRST QUARTER IN US METRO AREAS POWERED BY STRONG DEMAND IN THE MIDWEST AND PARTS OF THE SOUTH AND WEST BUT HOUSING PRICES CONTINUED TO ERODE IN CALIFORNIA AND IN THE NORTHEAST HONDA IS ADOPTING A SALES INCENTIVE PROGRAM THAT WILL GIVE DEALERS AS MUCH AS 1000 FOR EACH CAR THEY SELL THE MOVE COMES AMID A 145 SLIDE IN HONDA'S US SALES SO FAR THIS YEAR EASTMAN KODAK'S CHAIRMAN KAY WHITMORE WON TENUOUS VOTES OF CONFIDENCE FROM TWO MAJOR SHAREHOLDERS IN THE WAKE OF INVESTOR ANGER OVER THE RESIGNATION OF HIS FINANCE CHIEF A FEDERAL BANK REGULATOR LAUNCHED A CAMPAIGN AGAINST RACIAL DISCRIMINATION IN MORTGAGE LENDING THE PROGRAM WILL USE UNDERCOVER APPLICANTS THE INITIATIVE IS PART OF A CLINTON ADMINISTRATION EFFORT TO MAKE CREDIT MORE AVAILABLE IN POOR COMMUNITIES ACCOUNTING RULE MAKERS REFUSED TO GIVE BANKS MORE FLEXIBILITY IN IMPLEMENTING A RULE REQUIRING THEM TO VALUE MANY OF THE DEBT SECURITIES IN THEIR PORTFOLIOS AT CURRENT MARKET PRICES IBM NAMED VETERAN BANKER GERALD CZARNECKI TO OVERSEE PERSONNEL AND ADMINISTRATION CONTINUING AN INFLUX OF COMPUTERINDUSTRY OUTSIDERS WHO ARE TAKING OVER THE COMPANY DRUG AND HEALTHCARE STOCKS ROSE WHILE AIRLINE SHARES TUMBLED THE DOW JONES INDUSTRIALS CLIMBED 291 POINTS TO 344910 NASDAQ ISSUES ROSE SHARPLY THE DOLLAR MEANWHILE ALSO GAINED ITT AGREED TO SELL ITS DOMESTIC UNSECURED CONSUMER LOANS TO A GROUP LED BY GOLDMAN SACHS FOR ABOUT 17 BILLION ITT IS TO HAVE A 15 STAKE IN THE GROUP HOUSEHOLD INTERNATIONAL IS TO OWN 25 AND ADMINISTER THE PORTFOLIO GPA GROUP IS CONSIDERING SUSPENDING ALL PAYMENTS ON ITS 55 BILLION IN DEBT IN AN ATTEMPT TO KEEP THE IRISH AIRCRAFTLEASING GIANT AFLOAT LONDON AND FRANKFURT STOCKS FELL BRITAIN'S FTSE 100 AVERAGE DROPPED 161 POINTS TO 27965 GERMANY'S DAX INDEX DECLINED 421 POINTS TO 162316 BONDS LEHMAN BROTHERS TREASURY INDEX 513667 UP 619 COMMODITIES OIL 2046 A BARREL UP SEVEN CENTS DOW JONES FUTURES INDEX 12219 OFF 065 SPOT INDEX 12048 UP 065 DOLLAR 11045 YEN OFF 020 15805 MARKS UP 00047 9305060066 930506 MARKETING BRIEF GENERAL MOTORS CORP DIRECTV SATELLITE TV SERVICE SIGNS ACCORDS WITH TURNER DIRECTV INC A FLEDGLING DIRECT BROADCAST SATELLITE SERVICE SAID IT SIGNED DISTRIBUTION AGREEMENTS WITH FIVE TURNER BROADCASTING SYSTEM INC SERVICES AND SEVERAL OTHER CABLE TELEVISION NETWORKS DIRECT BROADCAST SATELLITE TECHNOLOGY STARTED OUT DELIVERING PROGRAMMING TO LARGE OUTDOOR SATELLITE DISHES AT RURAL HOMES THAT COULDN'T GET CABLE SERVICE BUT NEWER DISHES ARE SMALLER AND CHEAPER AND SOME ANALYSTS BELIEVE DIRECTV AND ITS PARTNER US SATELLITE BROADCASTING INC COULD POSE THE FIRST REAL SATELLITE THREAT TO CABLE DIRECTV A UNIT OF GENERAL MOTORS CORP'S GM HUGHES ELECTRONICS SIGNED ACCORDS WITH THE FIVE TURNER SERVICES CNN HEADLINE NEWS CARTOON NETWORK SUPERSTATION TBS AND TNT AND WITH USA NETWORK SCIFI CHANNEL TNN THE NASHVILLE NETWORK CMT COUNTRY MUSIC TELEVISION AND THE FAMILY CHANNEL US SATELLITE AND GM HUGHES WILL LAUNCH TWO HIGHPOWER SATELLITES THAT COULD DELIVER ABOUT 150 CHANNELS BY SUMMER OF 1994 THE COMPANIES WILL BUY AND DISTRIBUTE PROGRAMMING SEPARATELY 9305060064 930506 YOUR MONEY MATTERS BEATING S&P PROVES TALL TASK FOR BROKERS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKPICKING SKILL HAS BEEN AT A PREMIUM IN THIS YEAR'S NERVEWRACKING MARKET AND A FEW BROKERAGE FIRMS HAVE DONE A LOT BETTER THAN OTHERS MERRILL LYNCH & CO KEMPER SECURITIES INC AND PAINEWEBBER INC DID BEST AT HELPING INVESTORS SAFELY NAVIGATE THE TREACHEROUS WATERS IN THE FIRST QUARTER ACCORDING TO A CONTINUING STUDY BY THE WALL STREET JOURNAL AND ZACKS INVESTMENT RESEARCH INC OF CHICAGO THE STOCKS OF THE THREE FIRMS' RECOMMENDED LISTS HANDILY BEAT THE STANDARD & POOR'S 500 INDEX INVESTORS WHO BOUGHT THE STOCKS ON MERRILL LYNCH'S FOCUS ONE LIST ACHIEVED AN ESTIMATED RETURN OF 121 ALMOST THREE TIMES THE S&P'S 44 GAIN BUT SEVEN OF 15 BROKERAGE FIRMS TRACKED IN THE JOURNAL STUDY FAILED TO BEAT THE AVERAGE INVESTORS WHO EMULATED GOLDMAN SACHS & CO'S PRIORITY LIST SAW THEIR PORTFOLIOS NICKED FOR AN ESTIMATED LOSS OF 05 OVERALL INVESTORS WHO FOLLOWED THE ADVICE OF THE TYPICAL BROKERAGE FIRM IN THE FIRST THREE MONTHS OF 1993 WOULD HAVE DONE ABOUT AS WELL TO BUY AN INDEX FUND WHICH MIMICS THE PERFORMANCE OF THE OVERALL MARKET LAST YEAR NEARLY ALL OF THE FIRMS BEAT THE MARKET TO A MINOR DEGREE THE FIRMS' POORER SHOWING IN THE JOURNAL STUDY REFLECTS A TOUGHENING OF THE RULES STARTING LAST DEC 31 THE STUDY ASSUMES A 1 TRADING COMMISSION WHENEVER A STOCK IS ADDED TO OR DELETED FROM A BROKERAGE HOUSE'S RECOMMENDED LIST THAT MAKES THE STUDY REFLECT MORE REALISTICALLY THE EXPERIENCE OF ACTUAL INVESTORS WHO MUST PAY TO TRADE BUT FAR MORE IMPORTANT THIS YEAR HAS BEEN DIFFICULT FOR STOCK PICKERS OLD RELIABLE GROWTH STOCKS HAVE STRUGGLED MEDICAL STOCKS HAVE BEEN WOUNDED AND EARNINGS DISAPPOINTMENTS HAVE BEEN PUNISHED CRUELLY SUCCESSFUL FIRMS GOT THE STINKERS OFF THEIR LIST BEFORE THEY WERE HIT SAYS RICK CHRABASZEWSKI AN ANALYST AT ZACKS TO THEIR CREDIT HE SAYS MANY FIRMS CLEANSED THEIR RECOMMENDED LISTS OF HEALTHCARE AND TOBACCO STOCKS BEFORE THE DAMAGE IN THOSE SECTORS GOT SEVERE MERRILL LYNCH CUSTOMERS ACHIEVED HANDSOME GAINS IN STOCKS LIKE PROPERTY TRUST OF AMERICA UP 36 INTEL CORP UP 32 AND SUNAMERICA INC UP 288 BUT THEY MAY NOT HAVE NOTICED MERRILL'S BEST FEAT NIMBLY AVOIDING LOSERS ONLY ONE OF MERRILL'S FOCUS ONE STOCKS DECLINED MORE THAN 2 IN THE QUARTER FAMILY DOLLAR STORES INC WAS OFF 11 JACK LAVERY THE FIRM'S DIRECTOR OF GLOBAL SECURITIES RESEARCH SAYS MERRILL LOOKS KINDLY ON CYCLICAL COMPANIES THAT ARE STREAMLINING AND CUTTING COSTS SUCH AS SHERWIN WILLIAMS CO IT IS HUNTING FOR STOCKS THAT APPEAL TO PRICE AND VALUE CONSCIOUS CONSUMERS SUCH AS FAMILY DOLLAR AND LUBY'S CAFETERIAS INC AND IT LIKES COMPANIES THAT ARE LEADERS IN TECHNOLOGICAL CHANGE SUCH AS MICROSOFT CORP FOR THE PAST 12 MONTHS AND INDEED FOR EVERY 12MONTH PERIOD SINCE JUNE 1991 THE JOURNAL SURVEY SUGGESTS THAT INVESTORS WOULD HAVE DONE BEST TO PICK THE STOCKS ON THE FOCUS LIST AT RAYMOND JAMES & ASSOCIATES INC STOCKS ON THAT LIST POSTED A 437 GAIN IN THE 12 MONTHS THROUGH MARCH DAVID HENWOOD RESEARCH DIRECTOR AT THE ST PETERSBURG FLA FIRM SAYS RAYMOND JAMES IS MAKING A MAJOR BET ON GAMING STOCKS WHICH HE EXPECTS TO SHOW VERY DYNAMIC GROWTH FOR THE NEXT FEW YEARS CURRENTLY CAESARS WORLD INC CIRCUS CIRCUS ENTERPRISES INC MIRAGE RESORTS INC PLAYER'S INTERNATIONAL INC PROMUS COS AND SHOWBOAT INC ARE ALL RECOMMENDED RAYMOND JAMES ALSO IS KEEN ON SELECTED BANK STOCKS AMSOUTH BANCORP BB&T FINANCIAL CORP JP MORGAN & CO AND CRESTAR FINANCIAL CORP SHOULD ALL DO WELL SO LONG AS INTEREST RATES DON'T RISE MUCH MR HENWOOD SAYS DEVOTEES OF PAINEWEBBER'S PERFORMANCE PORTFOLIO ALSO ACHIEVED AN EXCELLENT 12MONTH GAIN ESTIMATED AT 377 RESEARCH DIRECTOR JAMES VOYTKO SAYS THE FIRM IS SEARCHING FOR NICHE STOCKS SUCH AS ALLEN GROUP INC LDDS COMMUNICATIONS INC AND MARK IV INDUSTRIES INC IT ALSO FAVORS EUROINDUSTRIALS SUCH AS HONEYWELL INC BASED ON HOPES THAT EUROPE WILL RECOVER FROM RECESSION LATE THIS YEAR OR EARLY NEXT YEAR PAINEWEBBER LIKES SPLITUP CANDIDATES TOO MANY LARGE CORPORATIONS INCLUDING EASTMAN KODAK BRISTOLMYERS SQUIBB PARAMOUNT ICI AND JOHNSON & JOHNSON COULD BOOST THEIR MARKET VALUE BY SPLITTING THEMSELVES UP STRATEGISTS EDWARD M KERSCHNER AND THOMAS M DOERFLINGER RECENTLY WROTE THE MOSTIMPROVEDPERFORMANCE PRIZE GOES TO KEMPER SECURITIES PEOPLE WHO RELY ON ITS EQUITY OPPORTUNITY LIST GAINED MORE IN THE FIRST QUARTER 94 THAN IN ALL OF 1992 92 CORPORATE DOWNSIZING AND OVERSEAS EXPOSURE ARE TWO FAVORITE THEMES SAYS RAMON PECUCH THE FIRM'S RESEARCH DIRECTOR AMONG THE STOCKS KEMPER RATES MOST HIGHLY ARE BRITISH STEEL PLC COOPER TIRE & RUBBER CO FABRICENTERS OF AMERICA INC OWENSCORNING FIBERGLAS CORP AND SMITH INTERNATIONAL INC OVER A FIVEYEAR SPAN RAYMOND JAMES HAS FURNISHED THE BEST ADVICE AMONG THE FIRMS IN THE JOURNAL SURVEY FOLLOWED BY DEAN WITTER REYNOLDS INC AND AG EDWARDS & SONS INC TERRY DESSENT RESEARCH DIRECTOR AT EDWARDS SAYS INVESTORS SHOULD USE THE RECENT DECLINE IN CONSUMERPRODUCTS STOCKS TO DO SOME BARGAIN HUNTING INSTITUTIONS HAVE BEEN ACTING LIKE LEMMINGS IN SELLING THESE STOCKS HE SAYS HE PARTICULARLY LIKES HJ HEINZ CO IT DOESN'T SHOCK ME THAT WE'VE HAD A TOUGH PERIOD SAYS WILLIAM KEALY GOLDMAN'S RESEARCH DIRECTOR WE'RE NOT GOING TO ABANDON OUR BELIEF IN QUALITY AND GO FOR SOME WILD STRATEGY TO PLAY CATCHUP IF THE ECONOMY RECOVERS AND THE HEALTHCARE PLAN IS NOT DRACONIAN WE'LL GET THROUGH THIS SMITH BARNEY HARRIS UPHAM & CO LAGGED BEHIND THE REST OF THE FIELD FOR THE 12 MONTHS THROUGH MARCH INVESTORS USING ITS PRIORITY EQUITIES RETAIL RECOMMENDED LIST GAINED AN ESTIMATED 91 TRAILING THE S&P 500 BY SIX POINTS JOHN HOFFMAN ASSOCIATE DIRECTOR OF RESEARCH SAYS THE FIRM HAS DECIDED IT ERRED LAST YEAR BY DEPARTING FROM ITS NORMAL STYLE PRETTY BIG PRETTY CONSERVATIVE STOCKS THIS IS WHAT WE DO BEST HE SAYS HE POINTS TO A GOOD FIRST QUARTER UP 74 AS A SIGN THAT THINGS ARE BACK ON TRACK FOR THE FIVE YEARS ENDED IN MARCH KIDDER PEABODY & CO HAS THE WORST PERFORMANCE WE HAVE TAKEN STEPS TO CORRECT WHAT WAS RATHER POOR PERFORMANCE OVER THAT TIME FRAME AND I THINK THE RECENT QUARTERLY PERFORMANCE UP 8 SPEAKS FOR ITSELF SAYS DENNIS JARRETT THE FIRM'S CHIEF MARKET ANALYST BECAUSE STARTING WITH THIS YEAR'S FIRST QUARTER THE STUDY ATTEMPTS TO TAKE TRADING COMMISSIONS INTO ACCOUNT WHEN ESTIMATING THE PERFORMANCE OF THE FIRMS' RECOMMENDED STOCKS THE BROKERAGEHOUSE RESULTS AREN'T TOTALLY COMPARABLE WITH MARKET INDEXES LIKE THE S&P 500 WHICH DON'T INCLUDE TRADING COMMISSIONS STILL AN INDIVIDUAL CAN GET A CLOSE APPROXIMATION OF THE S&P'S PERFORMANCE AT MINIMAL COST BY BUYING AN INDEX MUTUAL FUND FOR THE MOST PART THE 15 FIRMS ACCEPT THE MEASUREMENTS MADE BY THE JOURNAL AND ZACKS MERRILL LYNCH HOWEVER DISAGREES WITH ITS FIVEYEAR RESULT UNTIL FALL OF 1991 MERRILL REFUSED TO SPECIFY A LIST OF STOCKS ON WHICH TO BE JUDGED AND WAS JUDGED ON ALL ITS ANALYSTS' STRONG BUYS WERE IT JUDGED RETROSPECTIVELY ON THE LISTS OF ITS CHOICE MERRILL SAYS IT WOULD BE UP AT LEAST 184 FOR THE FIVEYEAR PERIOD RATHER THAN THE 1232 SHOWN IN THE TABLE BUT SINCE MANY BROKERAGE HOUSES HAVE MORE THAN ONE LIST OF RECOMMENDED STOCKS THE STUDY'S RULES PROHIBIT FIRMS FROM SELECTING LISTS RETROSPECTIVELY ESTIMATED PERFORMANCE OF STOCKS RECOMMENDED BY MAJOR BROKERAGE HOUSES THROUGH MARCH 31 RANKED BY 12MONTH PERFORMANCE ALL FIGURES INCLUDE PRICE CHANGES AND DIVIDENDS STARTING IN 1993 FIGURES ALSO INCLUDE 1 TRADING COMMISSIONS WHEN STOCKS ARE ADDED TO OR DELETED FROM THE RECOMMENDED LIST 9305060063 930506 BUSINESS BRIEF MA HANNA CO FIRM AGREES TO DISTRIBUTE RESINS MADE BY AMOCO UNIT MA HANNA CO SAID IT HAS SIGNED A LETTER OF INTENT WITH AMOCO PERFORMANCE PRODUCTS INC TO BECOME THE EXCLUSIVE US DISTRIBUTOR FOR AMOCO'S AMODEL POLYPTHALAMIDE RESINS TERMS WEREN'T DISCLOSED HANNA IS BASED IN CLEVELAND AMOCO PERFORMANCE IS A UNIT OF AMOCO CORP'S AMOCO CHEMICAL CO OF ALPHARETTA GA THE COMPANY ALSO SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF CLOSELY HELD GLOBAL PROCESSING CO SANTA FE SPRINGS CALIF TERMS WEREN'T DISCLOSED MA HANNA SAID GLOBAL PROCESSING A SPECIALTY RUBBER COMPOUNDER HAS ANNUAL SALES OF ABOUT 10 MILLION THE COMPANY SAID GLOBAL PROCESSING WILL OPERATE UNDER ITS OLD NAME BUT WILL REPORT TO THE COMPANY'S BURTON RUBBER UNIT BASED IN BURTON OHIO MA HANNA IS A SPECIALTY CHEMICAL CONCERN THAT MAKES FORMULATED POLYMERS AND FORMULATED COLORANTS FOR PLASTICS 9305060062 930506 COMPROMISE IS SET IN HOUSE ON USING FUNDS FOR THRIFTS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE BANKING COMMITTEE LEADERS AGREED TO USE AS MUCH AS 16 BILLION OF PREVIOUSLY AUTHORIZED MONEY TO FINANCE THE THRIFT INDUSTRY DEPOSITINSURANCE FUND BUT ATTACHED SEVERAL OBSTACLES BEFORE IT COULD BE SPENT THE COMPROMISE AGREEMENT BETWEEN CHAIRMAN HENRY GONZALEZ D TEXAS AND OTHER DEMOCRATS AND REPUBLICANS INCLUDING RANKING GOP MEMBER JAMES LEACH OF IOWA INVOLVES FUNDS ALREADY AUTHORIZED BY CONGRESS FOR THE FEDERAL DEPOSIT INSURANCE CORP'S SAVINGS ASSOCIATION INSURANCE FUND OR SAIF BUT BEFORE THE FDIC COULD USE ANY OF THAT MONEY TO COMPLETE THE MASSIVE THRIFT BAILOUT THAT BEGAN NEARLY FIVE YEARS AGO SEVERAL HURDLES WOULD HAVE TO BE SURMOUNTED SIGNIFICANTLY THE FUNDING WOULD HAVE TO GO THROUGH THE APPROPRIATIONS PROCESS WHICH COULD PROVE FORMIDABLE THE CLINTON ADMINISTRATION HAS BEEN INVOLVED IN THE NEGOTIATIONS AND AGREED TO THE APPROACH COMMITTEE MEMBERS SAID MR LEACH AND OTHER GOP MEMBERS OF THE PANEL HAVE ARGUED THAT THE TAXPAYER SHOULDN'T PROVIDE ANY SAIF MONEY TO COVER DEPOSITS OF SAVINGSANDLOAN ASSOCIATIONS THAT FAIL IN THE FUTURE INSTEAD THEY ARGUE THE THRIFT INDUSTRY SHOULD ASSUME THAT BURDEN BUT DEMOCRATS PUSHED THROUGH 12 BILLION OF NEW SAIF FUNDING IN A BANKING SUBCOMMITTEE LAST WEEK THAT ACTION WOULD BE SUPERSEDED BY THE NEW PLAN THE COMPROMISE ATTEMPTS TO MEET THE GOP ARGUMENT AND THE QUALMS OF SOME DEMOCRATS AND IS LIKELY TO HEAD OFF ANY SHARP DISPUTE IN THE BANKING COMMITTEE CONSIDERATION OF S&L FUNDING TODAY AS WELL AS ON THE HOUSE FLOOR LATER IN THE MEANTIME THE COMMITTEE IS EXPECTED TO ENDORSE THE SUBCOMMITTEE'S APPROVAL OF 183 BILLION FOR THE RESOLUTION TRUST CORP THE THRIFTCLEANUP AGENCY TO USE UNTIL ITS POWER TO TAKE OVER FAILED S&LS EXPIRES AFTER SEPT 30 THE SUBCOMMITTEE VOTED LAST WEEK TO LIFT A CONGRESSIONAL BAN ON THE RTC'S USE OF THE PREVIOUSLY AUTHORIZED SUM UNDER THE COMPROMISE THE FDIC'S EXISTING AUTHORITY TO USE 32 BILLION FOR SAIF COVERAGE OF FAILEDS&L DEPOSITS WOULD BE CUT IN HALF UNDER EXISTING LAW AND THE COMPROMISE PLAN CONGRESS WOULD HAVE TO APPROPRIATE MONEY TO BACK UP THAT AUTHORITY BEFORE ANY OF IT COULD BE USED REP LOUIS STOKES D OHIO CHAIRMAN OF A HOUSE APPROPRIATIONS SUBCOMMITTEE THAT WOULD HAVE AUTHORITY OVER SAIF SPENDING SAID IN AN INTERVIEW THAT NO DECISION HAS BEEN MADE ABOUT HOW MUCH IF ANY SAIF MONEY WILL BE PROVIDED AMONG OTHER CONDITIONS THE BANKING COMMITTEE AGREEMENT WOULD ATTACH TO THE FINANCING PLAN BEFORE ANY OF THE 16 BILLION COULD BE USED THE FDIC WOULD HAVE TO USE UP FUNDS CURRENTLY IN SAIF AND COMING INTO IT IN FUTURE YEARS THEN THE AGENCY WOULD HAVE TO CERTIFY THAT PREMIUMINSURANCE INCREASES DESIGNED TO BOLSTER THE SAIF FUND WOULD BE SELFDEFEATING BECAUSE IT WOULD CAUSE MORE S&LS TO FAIL THE FDIC ALSO WOULD HAVE TO CERTIFY THAT LOANS UNDER ITS 30 BILLION IN SAIF BORROWING AUTHORITY AREN'T FEASIBLE BECAUSE BOOSTING THE INSURANCE PREMIUMS TO REPAY THE LOANS IS OUT OF THE QUESTION GREG HITT CONTRIBUTED TO THIS ARTICLE 9305060061 930506 BUSINESS BRIEF NEW LINE CINEMA CORP FIRSTQUARTER EARNINGS ROSE 69 ON BOXOFFICE SUCCESSES NEW LINE CINEMA CORP REPORTED A 69 INCREASE IN FIRSTQUARTER EARNINGS WHICH IT ATTRIBUTED TO STRONG BOXOFFICE SHOWINGS OF TWO FILMS AND VIDEO AND PAYTELEVISION RELEASES OF OTHER FILMS NEW LINE A NEW YORK INDEPENDENT PRODUCER AND DISTRIBUTOR OF FILMS HAD NET OF 36 MILLION OR 24 CENTS A SHARE COMPARED WITH 21 MILLION OR 15 CENTS A SHARE A YEAR EARLIER REVENUE MORE THAN DOUBLED TO 879 MILLION FROM 424 MILLION THE AVERAGE NUMBER OF SHARES OUTSTANDING IN THE QUARTER WAS NEARLY 153 MILLION COMPARED WITH 145 MILLION IN THE 1992 QUARTER NEW LINE HAD STRONG THEATRICAL PERFORMANCE OF NATIONAL LAMPOON'S LOADED WEAPON 1 WHICH AS OF MARCH 31 GENERATED BOX OFFICE RECEIPTS OF 27 MILLION AND TEENAGE MUTANT NINJA TURTLES III BACK IN TIME WHICH OPENED ON MARCH 19 AND GROSSED 24 MILLION IN ITS FIRST 13 DAYS THROUGH MARCH 31 EARNINGS ALSO WERE HELPED BY VARIOUS ANCILLARY REVENUE SOURCES SUCH AS THE HOME VIDEO RELEASES OF THE PLAYER AND HONEYMOON IN VEGAS AND PAYTELEVISION REVENUE FROM THE LAWNMOWER MAN 9305060060 930506 BUSINESS BRIEF ROCHESTER COMMUNITY SAVINGS BANK THRIFT'S SHARES JUMP 22 UNSOLICITED OVERTURE MADE ROCHESTER COMMUNITY SAVINGS BANK ROCHESTER NY AFTER ITS SHARES JUMPED 22 MONDAY AND TUESDAY SAID IT RECEIVED AN UNSOLICITED OVERTURE FROM A POTENTIAL ACQUIRER A ROCHESTER COMMUNITY SPOKESMAN SAID THE BANK DOESN'T COMMENT ON MOVEMENTS IN THE STOCK PRICE HE WOULDN'T SAY WHEN THE BANK RECEIVED THE ACQUISITION OVERTURE BUT HE SAID THE ANNOUNCEMENT CAME IN RESPONSE TO AN INQUIRY FROM NASDAQ OFFICIALS WHO ASKED WHETHER THERE WERE ANY UNDISCLOSED CORPORATE EVENTS THAT MIGHT EXPLAIN THE RISE IN THE STOCK ROCHESTER COMMUNITY WOULDN'T IDENTIFY THE INTERESTED PARTY AND SAID IT HAS NOT DETERMINED WHETHER IT WILL PURSUE A DEAL ITS STOCK CLOSED TUESDAY IN OVERTHECOUNTER TRADING AT 14375 UP 2625 FROM FRIDAY YESTERDAY IT ROSE 3375 TO 1775 ROCHESTER COMMUNITY OFFICIALS WOULDN'T IDENTIFY THE SUITOR BUT ANALYSTS SAID LIKELY PROSPECTS INCLUDE FIRST EMPIRE STATE CORP A BUFFALO BANK HOLDING COMPANY WITH 10 BILLION IN ASSETS AND KEYCORP AN ALBANY NY BANK HOLDING COMPANY WITH 32 BILLION IN ASSETS BOTH COMPANIES DECLINED TO COMMENT 9305060059 930506 ECONOMY SURVEY BY FED FINDS ECONOMY IS IMPROVING PACE PICKED UP IN APRIL LATE MARCH BUT GROWTH ISN'T CREATING MANY JOBS BY LUCINDA HARPER AND IAN OLGEIRSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY KNOCKED OUT OF KILTER BY BAD WEATHER IN FEBRUARY AND MARCH IMPROVED IN LATE MARCH AND IN APRIL A NEW SURVEY BY THE FEDERAL RESERVE DISTRICT BANKS SUGGESTS THE 12 REGIONAL BANKS FOUND GENERALLY MODEST IMPROVEMENT IN ECONOMIC CONDITIONS ACROSS THE NATION THE FED SAID BUT THE ECONOMIC GROWTH STILL ISN'T CREATING MANY NEW JOBS NO DISTRICT ANTICIPATES A FLURRY OF NEW HIRING IN THE NEAR TERM EVEN THOUGH SEVERAL INDUSTRIES ARE REPORTEDLY PRODUCING AT NEAR CAPACITY THE FED SAID THE FED'S NEW SURVEY IS HEARTENING BECAUSE IT COMES AT A TIME OF FRESH CONCERN THAT THE RECOVERY IS STALLING OUT RECENT INDICATORS HAVE SUGGESTED THAT CONSUMERS ARE PESSIMISTIC SPENDING IS IN THE TANK AND MANUFACTURING MAY BE HEADED DOWNHILL THE REAL TEST THOUGH ANALYSTS SAY WILL COME TOMORROW WHEN THE LABOR DEPARTMENT RELEASES ITS TALLY OF HOW MANY NEW JOBS IF ANY WERE CREATED DURING APRIL ROUGHLY 22000 PAYROLL JOBS WERE LOST DURING MARCH AFTER ENCOURAGING GROWTH IN JANUARY AND FEBRUARY MANY ECONOMISTS PREDICT THAT ABOUT 150000 NEW JOBS WERE CREATED LAST MONTH AND THAT ANY FIGURE UNDER 75000 WOULD BE A SIGN THAT CONSUMER SPENDING WILL LIKELY REMAIN LACKLUSTER THE FED SURVEY CONDUCTED DURING THE SIX WEEKS ENDED APRIL 23 FOUND THAT SHOPPER TRAFFIC AND RETAIL SALES REBOUNDED MODESTLY IN APRIL FOLLOWING GENERAL DECLINES IN MARCH RESULTING IN PART FROM SEVERE WEATHER MANUFACTURERS WHICH ALSO LOST MOMENTUM DURING MARCH NOTED A PICKUP IN BUSINESS AS WELL FACTORIES ACROSS MOST OF THE COUNTRY WITH THE EXCEPTION OF THE DALLAS KANSAS CITY AND SAN FRANCISCO FED DISTRICTS SAID SHIPMENTS AND ORDERS ARE UP AND THAT PLANTS ARE OPERATING NEAR CAPACITY THERE HAS ALSO BEEN SOME INCREASE IN COMMERCIAL LOANS PARTICULARLY TO SMALL BUSINESSES WHICH HAVE BEEN SQUEEZED MOST BY THE SOCALLED CREDIT CRUNCH BUT THE INCREASE IN ECONOMIC ACTIVITY HAS NOT MANAGED TO GENERATE MANY NEW JOBS SOMETHING THE RECOVERY HAS BEEN WOEFULLY SHORT OF SINCE IT BEGAN MORE THAN TWO YEARS AGO SEVERAL EMPLOYERS ACROSS THE COUNTRY SAY THEY ARE AVOIDING NEW HIRES BY EXTENDING HOURS USING TEMPORARY WORKERS AND INCREASING PRODUCTIVITY HERE IS A SUMMARY OF THE 12 FEDERAL RESERVE DISTRICT BANKS BOSTON BUSINESS LEADERS REPORTED THAT THE ECONOMY CONTINUES ALONG THE PATH OF MODERATE IMPROVEMENT HINDERED BY SLUMPING RETAIL SALES AND SLUGGISH EMPLOYMENT GROWTH WITHOUT THE HARSH WINTER WEATHER RETAILERS SAY SALES WOULD HAVE SURPASSED YEAREARLIER LEVELS REPORTS FROM MANUFACTURERS RANGED FROM MODERATE IMPROVEMENT TO DOUBLEDIGIT INCREASES RESIDENTIAL REAL ESTATE IS SHOWING SIGNS OF IMPROVEMENT NEW YORK RESIDENTIAL BUILDING GAINS AND REPORTS OF APARTMENT COMPLEX CONSTRUCTION THE FIRST IN SEVERAL YEARS BRIGHTENED MIXED ECONOMIC DEVELOPMENT FOR THE REGION RETAILERS REGISTERED LESSTHANTARGETED SALES BUT ARE OPTIMISTIC THAT SALES WILL IMPROVE WITH THE WEATHER A SURVEY OF SMALL AND MIDSIZE BANKS SHOWED A CONTINUED INCREASE IN WILLINGNESS TO MAKE LOANS PHILADELPHIA SLIGHT IMPROVEMENT CHARACTERIZED THE GROWTH PATTERN IN THE REGION VIRTUALLY ALL MAJOR MANUFACTURING SECTORS RECORDED IMPROVEMENT WITH THE EXCEPTION OF FURNITURE AND LUMBER WHICH WERE STEADY RETAILERS POSTED ONLY SMALL GAINS CITING BAD WEATHER EMPLOYMENT WAS FLAT AS WAS LOAN ACTIVITY BUT BANKERS REPORTED AN INCREASE IN LOAN APPLICATIONS AND ARE OPTIMISTIC ABOUT THE COMING MONTHS CLEVELAND PURCHASES FAILED TO KEEP PACE WITH ENCOURAGING GROWTH ON THE MANUFACTURING FRONT SAGGING CONSUMER CONFIDENCE COUPLED WITH BAD WEATHER KEPT SALES FLAT SOME PLANTS ARE OPERATING NEAR OR AT FULL CAPACITY BUT MANUFACTURERS HOPE TO BOOST PRODUCTION RELYING ON OVERTIME AND INCREASED PRODUCTIVITY MORTGAGE REFINANCING CONTINUED ITS FRANTIC PACE ALTHOUGH IT APPEARS TO BE LEVELING OFF AT MANY BANKS RICHMOND THE ECONOMY CONTINUED TO IMPROVE IN THE REGION BOLSTERED BY INCREASED RETAIL SALES AND STRENGTHENED FURNITURE MANUFACTURING DESPITE THE GAINS EMPLOYMENT REMAINED FLAT AND RETAILERS FORESEE NO CHANGE IN STAGNANT HIRING RESIDENTIAL REAL ESTATE ACTIVITY REMAINED RELATIVELY STRONG ATLANTA HOME BUILDING AND RENOVATION LED THE WAY FOR MODERATE ECONOMIC IMPROVEMENT IN THE REGION DESPITE UNUSUALLY POOR WEATHER APPLIANCE FURNITURE CARPET AND BUILDINGMATERIALS MANUFACTURERS CONTINUED TO REPORT GAINS BUT FEW EXPRESSED PLANS FOR HIRING RETAILERS REPORTED INCREASES IN CONSUMER SPENDING COMPARED WITH A YEAR EARLIER HOME SALES CONTINUED TO BE STRONG BUT COMMERCIAL REAL ESTATE REMAINED WEAK HOME FINANCING AND REFINANCING CONTINUED AT A BRISK PACE CHICAGO DROOPING CONSUMER CONFIDENCE AND UNRELENTING POOR WEATHER TEAMED UP TO DAMP SALES AND SLOW ECONOMIC EXPANSION IN THE REGION HOWEVER BUYING SURGES WERE REPORTED DURING BREAKS IN THE WEATHER RETAILERS CITED CONCERNS ABOUT TAX INCREASES AS A CONTRIBUTING FACTOR IN SLUMPING SALES GROWTH MANUFACTURERS REPORTED CONTINUED GRADUAL IMPROVEMENT PRICES INCREASED AT A HIGHER RATE THAN IN RECENT MONTHS ST LOUIS INCREASED RETAIL SALES AND HIGHER PRODUCTION DEMAND SPURRED EMPLOYMENT GAINS IN THE REGION MANUFACTURERS REPORTED WIDESPREAD JUMPS IN DEMAND STIMULATING JOB GROWTH AT MANY COMPANIES BANKERS REPORTED BOOSTS IN LOAN DEMAND FROM CONSUMERS AND SMALL BUSINESSES WEATHER DAMPED HOMEBUILDING SOMEWHAT ALTHOUGH MANY AREAS REPORTED CONSTRUCTION ACTIVITY AT OR ABOVE YEAREARLIER LEVELS MINNEAPOLIS AUTOMOBILE SALES AND COMMERCIAL CONSTRUCTION LED THE WAY FOR BROADBASED ECONOMIC GROWTH IN THE REGION CONSUMER SPENDING ROSE WITH THE FIRSTQUARTER SALES TAX RECEIPTS ABOVE PROJECTED LEVELS CONSTRUCTION CONTRACT AWARDS FOR THE FIRST QUARTER WERE UP 45 FROM 1992 BUT SINGLEFAMILY HOUSING PERMITS REMAINED BELOW THE YEAREARLIER LEVEL MINING AND AGRICULTURE ALSO REPORTED IMPROVED CONDITIONS KANSAS CITY IMPROVED RETAIL SALES HEADED A MODERATE ECONOMIC EXPANSION IN THE REGION MANUFACTURERS REPORTED GAINS IN APPAREL AND AUTOMOTIVE SALES DESPITE THE INCREASES MANUFACTURERS OPERATED BELOW CAPACITY AND EXPORTERS REPORTED DECREASES IN SALES ABROAD HOUSING STARTS WERE GENERALLY UP BANKERS REPORTED STRONGER LOAN DEMANDS THE DISTRICT'S IMPORTANT WINTER WHEAT CROP IS GENERALLY IN GOOD CONDITION AND OIL DRILLING ACTIVITY APPEARS TO HAVE STABILIZED DALLAS FALLING DEMAND FOR FABRICATED METALS TOPPED THE LIST OF THE REGION'S DECLINING MANUFACTURING ACTIVITY MANUFACTURERS SUGGESTED THAT THE WEAK DEMAND RESULTED FROM GENERAL CAUTION COMBINED WITH SLUGGISH COMMERCIAL CONSTRUCTION AND TRAILING OIL AND GAS DRILLING HOWEVER STRONG HOMEBUILDING CONTINUES TO INCREASE DEMAND FOR CONSTRUCTION MATERIALS RETAILERS REPORTED MODERATE GROWTH BUT MANY EXPECT A SLOWDOWN BECAUSE OF FEDERAL INCOME TAXES SAN FRANCISCO CALIFORNIA'S RAVAGED ECONOMY CONTINUED TO DRAG DOWN FAVORABLE CONDITIONS REPORTED IN THE REGION'S OTHER STATES BROADBASED CUTBACKS SLOWED RETAIL SALES MANUFACTURING AND EMPLOYMENT IN CALIFORNIA HOWEVER OTHER STATES IN THE REGION SHOWED IMPROVEMENTS IN CONSUMER CONFIDENCE AND INCREASES IN FACTORY ORDERS WASHINGTON REMAINS SHAKY BUT AEROSPACE LAYOFFS ARE SLOWING COMMERCIAL REAL ESTATE AND CONSTRUCTION SHOW SIGNS OF BOTTOMING OUT AND HOMEBUILDING IS STRENGTHENING THROUGHOUT THE REGION PARTICULARLY IN ARIZONA UTAH AND IDAHO 9305060058 930506 BUSINESS BRIEF PORSCHE AG LUXURY SPORTS CAR MAKER OFFERS TO LEASE USED MODELS IN AN EFFORT TO BOLSTER US SALES PORSCHE CARS NORTH AMERICA INC IS FOR THE FIRST TIME OFFERING LEASE DEALS ON USED CARS THE PROGRAM IS BEING OFFERED TO ALLOW MORE AMERICAN DRIVERS TO ENJOY THE THRILL OF THE PORSCHE EXPERIENCE SAID FRED SCHWAB PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PORSCHE AG'S US SALES ARM WHICH IS BASED IN RENO NEV PORSCHE HAS SOLD 1071 LUXURY SPORT CARS IN THE US THROUGH APRIL 30 DOWN 272 FROM THE SAME PERIOD A YEAR AGO THE PORSCHE PREFERRED LEASE PROGRAM ALLOWS DRIVERS TO LEASE THE VEHICLES FOR UP TO FIVE YEARS CONSUMERS IN MOST STATES WILL HAVE AN OPTION TO PURCHASE THE CAR FOR THE RESIDUAL VALUE AT THE END OF THE LEASE UNDER THE PROGRAM CONSUMERS MAY LEASE A 1991 CARRERA 2 FOR FOUR YEARS WITH 4000 AND MONTHLY PAYMENTS OF 699 THE 1991 CARRERA 2 IS CURRENTLY VALUED AT 41850 9305060057 930506 INTERNATIONAL BRIEF BAT INDUSTRIES PLC BRITISH FIRM SAYS PRETAX NET JUMPED 40 IN FIRST QUARTER BA T INDUSTRIES PLC A BRITISH TOBACCO AND FINANCIALSERVICES COMPANY REPORTED A 40 RISE IN PRETAX PROFIT FOR THE FIRST QUARTER TO 360 MILLION 564 MILLION FROM 258 MILLION A YEAR EARLIER BUT BA T SHARES CONTINUING A RECENT SLIDE FELL 23 PENCE OR 26 TO 850 PENCE ON THE LONDON EXCHANGE BA T HAS SEEN ITS STOCK SKID ABOUT 15 SINCE PHILIP MORRIS COS' ANNOUNCEMENT IN APRIL THAT IT WOULD BEGIN DISCOUNTING ITS MARLBORO BRAND IN AN ATTEMPT TO CURB DECLINES IN ITS US MARKET SHARE FEARS OF A PRICE WAR HAVE HURT OTHER TOBACCO COMPANY STOCKS AS WELL BA T CHAIRMAN PATRICK SHEEHY CONCEDED THAT THE US PRICE WAR WILL TAKE A TOLL BUT HE SAID THE IMPORTANCE OF THAT MARKET FOR BA T HAS DIMINISHED INDEED IN THE LATEST PERIOD GAINS BY FINANCIAL SERVICES OFFSET A 31 SLIP IN TOBACCO PROFIT BAT'S OVERALL SALES ROSE 18 TO 603 BILLION FROM 513 BILLION 9305060056 930506 BUSINESS BRIEF ORNDA HEALTHCORP COMPANY TO PAY 79 MILLION FOR FLORIDA MEDICAL CENTER ORNDA HEALTHCORP NASHVILLE TENN DEFINITIVELY AGREED TO ACQUIRE FLORIDA MEDICAL CENTER FROM EDWARD A DAUER AND HIS FAMILY FOR 79 MILLION AND THE ASSUMPTION OF 2 MILLION IN SHORTTERM OBLIGATIONS THE HOSPITAL CHAIN SAID IT WILL ALSO PAY THE DAUER FAMILY ABOUT 26 MILLION FOR THREE MEDICAL OFFICE BUILDINGS A MULTIUSE PROFESSIONAL AND COMMERCIAL CENTER AND 20 ACRES OF VACANT LAND ADJACENT TO THE 459BED ACUTECARE HOSPITAL WHICH IS LOCATED IN FORT LAUDERDALE DR DAUER A FORT LAUDERDALE PHYSICIAN AND CURRENT CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF FLORIDA MEDICAL CENTER WILL REMAIN AT THE CENTER UNDER A LONGTERM CONSULTING AGREEMENT ORNDA SAID ORNDA WHICH ALREADY OWNS 17 ACUTECARE AND TWO PSYCHIATRIC HOSPITALS SAID THE TRANSACTION IS SUBJECT TO CERTAIN REGULATORY APPROVALS COMPLETION OF FINANCING AND OTHER CUSTOMARY CLOSING CONDITIONS ORNDA ALSO INTENDS TO PURCHASE THE OUTSTANDING LIMITED PARTNERSHIP SHARES OF FLORIDA MEDICAL CENTER LTD AT CLOSING TERMS WEREN'T DISCLOSED IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY ORNDA CLOSED AT 575 UNCHANGED 9305060055 930506 INTERNATIONAL BRIEF BANCO ESPANOL DE CREDITO SPANISH BANK SHARES PLUNGE AFTER ISSUES ARE ANNOUNCED THE STOCK OF BANCO ESPANOL DE CREDITO DROPPED 100 PESETAS TO CLOSE AT 2250 1951 ON THE MADRID EXCHANGE FOLLOWING THE BANK'S ANNOUNCEMENT TUESDAY THAT IT WILL RAISE 130 BILLION PESETAS 113 BILLION IN ONE OF SPAIN'S LARGESTEVER STOCK AND BOND ISSUES BANESTO AS THE BANK IS KNOWN SAID IT WILL RAISE 5266 BILLION PESETAS THROUGH A 3FOR1 RIGHTS ISSUE 4225 BILLION PESETAS THROUGH THE PLACEMENT OF NEW SHARES WITH INVESTORS AND 400 MILLION THROUGH A CONVERTIBLE BOND ISSUE ABROAD THE FUNDS WILL BOLSTER THE BANK'S CAPITALADEQUACY RATIOS BANKERS AND ANALYSTS ALIKE EXPRESSED SURPRISE OVER THE SIZE OF THE OPERATION AND QUESTIONED THE BANK'S MOTIVES FOR RAISING SUCH A MASSIVE AMOUNT OF MONEY FEW HAD AN EXPLANATION BUT SEVERAL SUGGESTED THE BANK MAY BE UP FOR SALE A BANESTO SPOKESMAN BRUSHED ASIDE THE SPECULATION IT'S ALWAYS A POSSIBILITY HE SAID OF THE SALE RUMORS WE CAN'T CONTROL THE STOCK MARKET BUT IT SEEMS A LITTLE FARFETCHED 9305060054 930506 BUSINESS BRIEF PREMARK INTERNATIONAL INC BOARD AUTHORIZES BUYBACK OF UP TO 3 MILLION SHARES PREMARK INTERNATIONAL INC SAID ITS BOARD AUTHORIZED THE REPURCHASE OF UP TO THREE MILLION OR AN INDICATED 94 OF ITS COMMON SHARES WITH VOLUME AND TIMING TO DEPEND ON MARKET CONDITIONS THE DEERFIELD ILL COMPANY WHICH MAKES CONSUMER AND RESTAURANT SUPPLIES CURRENTLY HAS ABOUT 318 MILLION SHARES OUTSTANDING THE COMPANY WHICH ALSO BOOSTED ITS QUARTERLY DIVIDEND TO 28 CENTS FROM 25 CENTS A SHARE SAID THAT BASED ON THE CONTINUING MOMENTUM ITS TUPPERWARE PRODUCTS ARE ENJOYING IN EUROPE A SMALLER LOSS IN TUPPERWARE'S US OPERATIONS AND PROGRESS IN OUR CONSUMER PRODUCTS BUSINESS IT EXPECTS THE SECOND QUARTER TO IMPROVE OVER LAST YEAR IN THE YEARAGO SECOND QUARTER PREMARK HAD NET INCOME OF 312 MILLION OR 94 CENTS A SHARE ON SALES OF 7315 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PREMARK SHARES ROSE 375 CENTS TO 49125 9305060053 930506 BUSINESS BRIEF COLUMBIA HOSPITAL CORP US JUDGE GRANTS INJUNCTION TO BLOCK ACQUISITION PLANS COLUMBIA HOSPITAL CORP SAID A FEDERAL JUDGE IN FLORIDA GRANTED THE FEDERAL TRADE COMMISSION A PRELIMINARY INJUNCTION BLOCKING COLUMBIA'S PLANNED ACQUISITION OF A FLORIDA HOSPITAL AN ATTORNEY FOR THE TRADE PANEL IN WASHINGTON DC SAID THE AGENCY SOUGHT THE ORDER UNDER THE ANTITRUST PROVISIONS OF THE FEDERAL CLAYTON ACT IT'S A MERGER WE ALLEGE WOULD HAVE ANTICOMPETITIVE EFFECTS SAID DAVID PENDER THE ATTORNEY THE HOSPITAL CHAIN BASED IN FORT WORTH TEXAS HAS PROPOSED TO ACQUIRE THE MEDICAL CENTER HOSPITAL IN PUNTA GORDA FLA IN AN EXCHANGE OF FACILITIES WITH THE ADVENTIST HEALTH SYSTEM/SUNBELT HEALTH CARE CORP THE TRANSACTION IS VALUED AT ABOUT 40 MILLION ACCORDING TO FTC ESTIMATES THE PUNTA GORDA FACILITY IS ONE OF SEVERAL FLORIDA HOSPITALS COLUMBIA HAS RECENTLY ACQUIRED OR AGREED TO ACQUIRE AND IT IS NEAR ANOTHER COLUMBIAOWNED HOSPITAL THE COMPANY HAS DENIED THE AGENCY'S ANTITRUST ALLEGATIONS MR PENDER SAID AN ADMINISTRATIVE TRIAL ON THE MATTER HAS BEEN SCHEDULED FOR OCTOBER AND THAT COLUMBIA CAN'T PROCEED WITH THE MERGER UNTIL THE CASE IS RESOLVEDEND 9305060052 930506 BUSINESS BRIEF NEW VALLEY CORP SUIT ALLEGES THAT FIRST DATA INTERFERED IN REORGANIZATION NEW VALLEY CORP CHARGED ONE OF ITS COMPETITORS IN THE MONEYTRANSFER BUSINESS FIRST DATA CORP WITH HURTING ITS REORGANIZATION BY UNDERCUTTING ITS PRICES NEW VALLEY UPPER SADDLE RIVER NJ FILED SUIT IN FEDERAL BANKRUPTCY COURT TO ENJOIN FIRST DATA FROM WHAT IT CALLED WRONGFUL INTERFERENCE IN ITS CHAPTER 11 REORGANIZATION NEW VALLEY PROVIDES MONEYTRANSFER SERVICES THROUGH ITS WHOLLY OWNED SUBSIDIARY WESTERN UNION FINANCIAL SERVICES INC FIRST DATA ONCE A UNIT OF AMERICAN EXPRESS CO ALSO PROVIDES CREDITCARD AND OTHER TRANSACTIONPROCESSING SERVICES NEW VALLEY CHARGED THE NEW YORKBASED FIRST DATA WITH UNLAWFUL BELOWCOST MONEY TRANSFER PRICING AND COVERT DISCUSSIONS WITH ITS CREDITORS WHICH IT CONSIDERS WRONGFUL INTERFERENCE IN ITS REORGANIZATION FIRST DATA RESPONDED BY SAYING IT HAS MADE INQUIRIES AND DEVELOPED STRATEGIES AS A RESULT OF NEW VALLEY'S CHAPTER 11 PETITION BUT IT CALLED THE SUIT TOTALLY WITHOUT MERIT NEW VALLEY HAS BEEN UNDER CHAPTER 11 PROTECTION FROM CREDITORS SINCE MARCH 31 9305060051 930506 INTERNATIONAL BRIEF PHILIPS ELECTRONICS NV DUTCH CONCERN'S NET INCOME FELL 36 FOR FIRST QUARTER PHILIPS ELECTRONICS NV OF THE NETHERLANDS SAID FIRSTQUARTER PROFIT FELL 36 TO 103 MILLION GUILDERS 582 MILLION FROM 162 MILLION GUILDERS A YEAR EARLIER BUT THE DROP WASN'T AS BIG AS MANY ANALYSTS HAD EXPECTED REVENUE SLIPPED A MODERATE 22 TO 1375 BILLION GUILDERS FROM 1406 BILLION GUILDERS THE COMPANY DECLINED TO MAKE A FULLYEAR FINANCIAL FORECAST BUT NOTED THAT ITS MAIN MARKETS IN EUROPE SHOW NO SIGNS OF IMPROVEMENT PHILIPS ADDED THAT ITS UNPROFITABLE CONSUMER ELECTRONICS SECTOR CONTINUES TO BE UNDER RELENTLESS PRICE PRESSURES SQUEEZING PROFIT MARGINS THE BOTTOM LINE WAS HELPED BY A DROP IN TAXES BUT HURT BY HIGHER INTEREST EXPENSES PHILIPS SAID IT HOPES TO RENEGOTIATE TERMS OF ITS DEBT BUT DG EUSTACE FINANCE DIRECTOR SAID THE COMPANY HASN'T BEEN ABLE TO ESCAPE THE CORSET OF PERSISTENTLY HIGH INTEREST RATES IN GERMANY TOTAL INTERESTBEARING DEBT AS OF MARCH 31 TOTALED 1615 BILLION GUILDERS ON THE AMSTERDAM STOCK EXCHANGE YESTERDAY PHILIPS SHARES ROSE TWO GUILDERS TO 2730 GUILDERS 9305060049 930506 WORLD MARKETS LONDON STOCKS DROP IN A TECHNICAL WHIPPING FRANKFURT'S SELLOFF CONTINUES FOR A SECOND DAY A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES DROPPED IN A SKITTISH MARKET THAT WAS WHIPPED BY TECHNICAL INTERPRETATIONS OF INDEX MOVEMENTS IN FRANKFURT A SELLOFF THAT CONTINUED FOR A SECOND DAY LEFT STOCK PRICES WEAKER TOKYO'S EXCHANGE WAS CLOSED WEDNESDAY FOR A JAPANESE HOLIDAY IN TOKYO THURSDAY THE NIKKEI 225STOCK INDEX ROSE 1195 POINTS TO CLOSE THE MORNING SESSION AT 2093113 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10619 DOWN 006 HEALTHCARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9910 UP 329 OR 34 WITH MANOR CARE OF THE US POSTING A 49 GAIN IN ITS LOCAL CURRENCY FOREST PRODUCT STOCKS TRAILED AT 13972 DOWN 458 OR 32 WITH LOUISIANAPACIFIC OF THE US SLIDING 77 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 161 POINTS TO 27965 THE FT 30STOCK INDEX FELL 154 POINTS TO 22027 VOLUME WAS 539 MILLION SHARES COMPARED WITH 4227 MILLION SHARES A DAY EARLIER PANIC ABOUT LONDON CHART POINTS OR INDEX LEVELS SENT THE MARKET DIVING AND THE FT 100 SANK AS MUCH AS 26 POINTS IN INTRADAY TRADING SOCALLED CHARTISTS ANALYSTS WHO BELIEVE THE MARKET'S PATH CAN BE TRACKED BY LOOKING AT RECURRING PATTERNS PREDICTED THAT ONCE THE KEY INDEX FELL THROUGH THE 2800 LEVEL IT COULDN'T BE STOPPED FROM HITTING 2730 AND ONCE THERE WOULD DROP AGAIN AND FIND SUPPORT ONLY AT 2700 BUT LATE IN THE SESSION INVESTORS DECIDED THE PANIC WAS OVERDONE AND BUYERS EMERGED TO PUSH PRICES BACK UP A BIT OTHER TECHNICAL FACTORS ALSO CAME INTO PLAY SUCH AS THE END OF A THREEWEEK TRADING ACCOUNT IN WHICH COMING SETTLEMENTS OF PURCHASES TYPICALLY WEIGH THE MARKET DOWN IN FRANKFURT THE DAX 30STOCK INDEX DECLINED 421 POINTS TO 162316 THOUGH IT DID RECOVER FROM AN INTRADAY LOW OF 161315 SELLING PRESSURE IN THE THIN FRANKFURT MARKET STEMMED FROM THE DOLLAR'S RELATIVELY WEAK EXCHANGE RATE WITH THE MARK WHICH DEPRESSED EXPORTORIENTED SHARES WEAK BONDFUTURES PRICES AND A SPATE OF WEAK FUNDAMENTAL ECONOMIC INDICATORS FROM GERMANY PARIS SHARE PRICES FINISHED A SEESAW SESSION MODERATELY HIGHER AS A FLAT START ON WALL STREET KEPT THE MOOD IN FRANCE CAUTIOUS LEAVING PARTICIPANTS LARGELY IN A HOLDING PATTERN AHEAD OF GOVERNMENT ECONOMIC REPORTS IN COMING DAYS IN AMSTERDAM STOCKS ENDED HIGHER AFTER A RISE IN THE US DOLLAR HELPED SPARK A ROUND OF LATE BUYING LED BY GLOBALLY TRADED DUTCH MULTINATIONALS GAINS ALSO WERE INSPIRED BY A SLIGHT DECLINE IN THE DUTCH MONEYMARKET INTEREST RATE CAUSED BY A FURTHER EASING OF THE GERMAN COUNTERPART MILAN EQUITIES ENDED MOSTLY LOWER AS INVESTORS IGNORED THE SUCCESSFUL RESHUFFLE OF THE ITALIAN GOVERNMENT AND REACTED INSTEAD TO NEGATIVE ECONOMIC NEWS INCLUDING WEAKNESS IN THE US RECOVERY AND REPORTS THAT ITALIAN CAR SALES PLUNGED 30 LAST MONTH MADRID SHARES SLIPPED AS INVESTORS REMAINED CAUTIOUS AHEAD OF DENMARK'S SECOND REFERENDUM ON A EUROPEAN COMMUNITY UNIFICATION TREATY AND SPAIN'S GENERAL ELECTIONS BUT STOCKHOLM SHARES ADVANCED TO A NEW HIGH FOR THIS YEAR ON POSITIVE NEWS FOR SWEDISH COMPANIES IN ZURICH BUYING OF MULTINATIONAL ISSUES ESPECIALLY PHARMACEUTICALS AND BANKS LIFTED THE MARKET IN SYDNEY STOCKS RALLIED WITH BANKING AND GOLD SHARES LEADING THE WAY THE GOLD SECTOR RESUMED ITS STRONG RISE AFTER A PAUSE OF SEVERAL DAYS MANILA SHARES CLIMBED SETTING A RECORD FOR THE FIFTH CONSECUTIVE SESSION AMONG CORPORATE DEVELOPMENTS IN LONDON BA T INDUSTRIES SANK 23 PENCE OR 26 TO 850 PENCE 1331 ON WORRIES ABOUT A CIGARETTE PRICE WAR IN THE US IN LINE WITH MARKET EXPECTATIONS BAT'S FIRSTQUARTER PRETAX PROFIT ROSE 40 TO 360 MILLION 5636 MILLION FROM A YEAR EARLIER AS GAINS IN FINANCIAL SERVICES OFFSET A SLIP IN TOBACCO PROFIT BA T SAID IT WOULD BE HURT BY THE US TOBACCO PRICE WAR BUT THAT THE IMPORTANCE OF THIS MARKET TO THE COMPANY HAS SHRUNK THE POUND'S 15 DECLINE IN CURRENCY DEALINGS SINCE SEPTEMBER HAS INCREASED THE VALUE OF BAT'S FOREIGN EARNINGS IN POUND TERMS TATE & LYLE DROPPED 8 OR 2 TO 397 THE SUGAR COMPANY'S PRETAX PROFIT FOR ITS FIRST HALF ENDED MARCH 27 ROSE 20 TO 1076 MILLION HELPED BY THE POUND'S DECLINE AND A PROFIT REBOUND AT TATE'S STALEY STARCH AND CORNSWEETENER BUSINESS IN THE US TRAFALGAR HOUSE ROSE 3 OR 33 TO 95 THE SHIPPING PROPERTY AND ENGINEERING CONGLOMERATE POSTED A PRETAX LOSS OF 976 MILLION FOR ITS FIRST HALF ENDED MARCH 31 COMPARED WITH YEAREARLIER PRETAX PROFIT OF 54 MILLION A 72 REDUCTION IN THE DIVIDEND TO 125 PENCE A SHARE WAS IN LINE WITH EXPECTATIONS ALSO SIMON KESWICK CHAIRMAN OF HONGKONG LAND HOLDINGS LTD WHICH OWNS 251 OF TRAFALGAR WILL BECOME ITS CHAIRMAN BRITISH TELECOMMUNICATIONS EASED 1 TO 40450 THE BRITISH GOVERNMENT IN ITS PLANNED SALE OF BT SHARES INTENDS TO COMPLETE THE OFFERING IN MIDJULY SUBJECT TO MARKET CONDITIONS THE MARKETING CAMPAIGN WILL START MAY 24 THE GOVERNMENT HOLDS 22 OF THE FORMER MONOPOLY IN FRANKFURT MANNESMANN LOST 330 MARKS OR 13 TO 24920 MARKS 15817 AFTER THE MARKET CLOSED THE INDUSTRIAL COMPANY UNVEILED A PROPOSED DEEPERTHANEXPECTED 33 CUT IN ITS 1992 DIVIDEND TO SIX MARKS A SHARE SUBJECT TO SHAREHOLDER APPROVAL AT THE ANNUAL MEETING JUNE 9 GROUP OPERATING PROFIT SLUMPED 46 TO 339 MILLION MARKS 2152 MILLION AND PARENTCOMPANY NET INCOME DROPPED 37 TO 244 MILLION MARKS KLOECKNERWERKE CLIMBED 470 OR 10 TO 5170 THE EUROPEAN COMMUNITY COMMISSION RELUCTANT TO FORCE THE STEEL AND ENGINEERING COMPANY INTO BANKRUPTCY PROCEEDINGS TOLD KLOECKNER TO SUBMIT A RESTRUCTURING PLAN TO CUT STEELMAKING CAPACITY IN EXCHANGE FOR FORGIVENESS OF PART OF AN EC LOAN KLOECKNER ALSO SAID THAT A GERMAN COURT OPENED RESTRUCTURING PROCEEDINGS FOR ITS PARENT COMPANY AND TWO STEEL SUBSIDIARIES AND THAT IT WOULD HOLD MEETINGS FOR CREDITORS IN JUNE ON THE REVAMPING PLANS IN MILAN FIAT GAVE UP 124 LIRE OR 18 TO 6726 LIRE 458 THE AUTO MAKER AND INDUSTRIAL CONCERN SAID IT EXPECTS TO POST 1992 CONSOLIDATED PROFIT OF ABOUT 500 BILLION LIRE 3402 MILLION DOWN 55 FROM 1991 PROFIT OF 1114 TRILLION LIRE THE ESTIMATE WAS IN LINE WITH ANALYSTS' EXPECTATIONS FIAT SAID EUROPE'S RECESSION INDICATES A CONTINUING SLUMP IN THE AUTO MARKET WHICH IT PREDICTED WILL SHRINK 20 THIS YEAR FROM 1992 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 9305060048 930506 POLITICS & POLICY WASHINGTON BATTLE FOR HEALTH REFORM SHOWED POSSIBLE EROSION OF BLUE CROSSBLUE SHIELD CLOUT BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL OLYMPIA WASH TO PASS A SWEEPING HEALTHCARE REFORM PACKAGE HERE LAST MONTH HOUSE LAWMAKERS FIRST LOCKED OUT THE LOBBYISTS AMONG THOSE CORRALLED INSIDE SPECTATOR BALCONIES ABOVE THE HOUSE FLOOR WAS MELVIN N SORENSEN THE CHIEF LOBBYIST FOR THE STATE'S BLUE CROSS AND BLUE SHIELD PLANS WHO HAD ORCHESTRATED THE MOST INTENSE LOBBYING BLITZ THAT STATE LEGISLATORS HERE CAN RECALL IN AN EFFORT TO GUT THE BILL'S COSTCONTAINMENT FEATURES THE INSURERS RAN A 600000 CAMPAIGN DURING THE YEAR LEADING UP TO THE VOTE THE EFFORT INCLUDED PHONE BANK OPERATIONS TV ADVERTISEMENTS POLITICAL CONTRIBUTIONS AND LOBBYING FEES THE CAMPAIGN PLUS OTHER GROUPS' LOBBYING EFFORTS HAD LEGISLATORS RUNNING SCARED ON THE EVE OF THE VOTE MAIL WAS RUNNING AS MUCH AS 80 AGAINST THE REFORM MEASURE BUT THIS YEAR THE INSURERS IN WASHINGTON GOT A SOBERING SURPRISE AFTER A HISTORY OF GETTING THEIR WAY IN STATE LEGISLATURES THEY WERE HANDED A DEFEAT LAWMAKERS SAY VOTERS' FRUSTRATION WITH THE CURRENT HEALTHCARE SYSTEM RULED THE DAY SAYS REP RANDY DORN A DEMOCRAT IN THE WASHINGTON LEGISLATURE LOOK SOME LADY COMES UP TO ME AND TELLS ME SHE HAS A 15000 BACK PROBLEM AND SHE'S UNINSURED WHAT AM I GOING TO DO THE OUTCOME IN WASHINGTON SUGGESTS THAT THERE AND PERHAPS IN THE NATION AS A WHOLE THE POLITICAL GROUND HAS SHIFTED MAKING IT HARDER FOR WELLFINANCED INTEREST GROUPS TO FEND OFF HEALTHCARE REFORMS THAT THE GENERAL PUBLIC SEEMS TO WANT AND ALTHOUGH THE INSURERS ARE GEARING UP FOR A FIERCE LOBBYING BATTLE OVER THE CLINTON ADMINISTRATION'S HEALTHCARE REFORMS THEY FACE A GROUNDSWELL OF SUPPORT FOR CHANGE BLUE CROSSBLUE SHIELD GROUPS ARE NO STRANGERS TO THE HEALTHCARE DEBATE THE HUGE NONPROFIT INSURERS COVER 67 MILLION AMERICANS ACCORDING TO A WALL STREET JOURNAL STUDY OF STATE AND FEDERAL CAMPAIGN RECORDS THE NATION'S 71 BLUE CROSS AND BLUE SHIELD PLANS SPENT MORE THAN 56 MILLION TO INFLUENCE STATE LEGISLATURES DURING THE PAST TWO YEARS THEY ARE ALSO WORKING HARD TO EXPAND THEIR CLOUT IN THE US CONGRESS RECORDS SHOW THE INSURERS HAVE SPENT ANOTHER 11 MILLION FOR LOBBYING POLITICAL CONTRIBUTIONS AND EXTENSIVE POLLING TO GIRD THEMSELVES FOR THE DEBATE ON THE CLINTON PLAN SEN SAM NUNN D GA SPEARHEADED A STUDY OF THE INSURERS THAT SHOWED THEY OFTEN TRY TO SOLVE THEIR PROBLEMS POLITICALLY IT'S A COMBINATION OF VERY LARGE POLITICAL INFLUENCE USING LARGE DONATIONS AND A LOT OF LOBBYING WITH A LACK OF DISCLOSURE SEN NUNN SAYS TAKEN TOGETHER THE 71 INDEPENDENT BLUE CROSSBLUE SHIELD GROUPS WOULD BE ROUGHLY THE EQUIVALENT OF THE NATION'S FIFTHLARGEST COMPANY MEASURED BY CAPITALIZATION WITH ASSETS OF 30 BILLION AND RESERVES OF 98 BILLION BUT ACCORDING TO FEDERAL RECORDS THE INSURERS' FEDERAL POLITICAL SPENDING FAR OUTSTRIPS THAT OF GENERAL MOTORS CORP THE WORLD'S LARGEST PRIVATE CORPORATION EARLIER THIS WEEK THE DEMOCRATS GOT A FEEL FOR THE LONG GREEN OF THE INSURERS AT THEIR ANNUAL CONGRESSIONAL DINNER AT LEAST 20 EXECUTIVES REPRESENTING SOME 16 BLUE CROSSBLUE SHIELD ORGANIZATIONS SHOWED UP AT 1500 A PLATE FORMED IN THE DEPRESSION ERA AS A WAY TO PROVIDE LOWCOST HEALTH COVERAGE THE INSURERS WERE REGARDED AS QUASICHARITABLE PUBLIC SERVICES BY MANY STATES WHICH GAVE THEM SUBSTANTIAL TAX BREAKS AND OTHER CONCESSIONS NOT EXTENDED TO COMMERCIAL INSURERS DURING THE 1970S AND 1980S HOWEVER THE CHARACTER OF THE BLUE CROSSBLUE SHIELD GROUPS CHANGED MANY EVOLVED INTO MAJOR CORPORATIONS WITH FORPROFIT SUBSIDIARIES ALTHOUGH THEIR FAVORED POLITICAL STATUS STEMS FROM THE FACT THAT MANY OF THE COMPANIES BEGAN AS INSURERS OF LAST RESORT CURRENTLY ONLY 20 OF THE 71 PLANS SERVE THAT FUNCTION ACCORDING TO THE INSURERS' ASSOCIATION MEANWHILE THE BLUE CROSSBLUE SHIELD GROUPS ARE CONTENDING WITH A SNARL OF FINANCIAL PROBLEMS AND MISMANAGEMENT CHARGES INCLUDING A LAWSUIT FILED BY AMERICAN TELEPHONE & TELEGRAPH CO THAT CHARGES NEW YORK'S EMPIRE BLUE CROSS AND BLUE SHIELD WITH FRAUD WHILE THE BLUE CROSSBLUE SHIELD GROUPS PROFESS TO SUPPORT HEALTHCARE REFORM THEY ACTIVELY OPPOSE KEY ELEMENTS OF IT THEY STRENUOUSLY OBJECT TO COSTCONTAINMENT FEATURES SUCH AS STATEIMPOSED PREMIUM LIMITS AND REQUIREMENTS THAT INSURERS DEAL WITH ANY QUALIFIED PHYSICIAN THEY ARE ALSO COOL TOWARD PROPOSALS TO USE STATEORGANIZED HEALTH INSURANCE PURCHASING COOPERATIVES TO DRIVE DOWN INSURANCE COSTS IN THE WASHINGTON BATTLE THE INSURERS' EFFORTS BACKFIRED FACING AN AMBITIOUS HEALTHCARE REFORM MOVEMENT HERE THEY SENT LETTERS TO 50000 EMPLOYERS ASSERTING THAT THE BILL WOULD MAKE THEIR HEALTH PLANS TOO EXPENSIVE THEY SENT ANOTHER MAILING TO THE STATE'S TEACHERS WARNING THAT THEY WOULD LOSE BENEFITS LAWMAKERS SAY THESE WARNINGS WERE EXAGGERATED AT TIMES CONTRADICTORY THE INSURERS ALSO RAN A TELEVISION SPOT SHOWING THE STATE'S HEALTHCARE SYSTEM AS A TREE BEING PRUNED LIMBS KEPT CRASHING TO THE GROUND AS A SMOOTH VOICE SUGGESTED THAT TOO MUCH CHANGE MIGHT NOT BE GOOD THE MESSAGES PRODUCED A SPASM OF CALLS FROM FRIGHTENED CONFUSED CONSTITUENTS MANY LAWMAKERS WERE IRRITATED BY THE CAMPAIGN AT THE END WE HAD THE BLUES PLAYING ON NOTHING BUT FEAR SAYS SEN PHILLIP TALMADGE A DEMOCRAT WHO PUSHED THE BILL THROUGH THE WASHINGTON SENATE CANDIDLY MY IMPRESSION IS THAT THEY HARMED THEIR OWN POSITION THEN CAME A LASTMINUTE BURST OF EVEN MORE HEAVYHANDED LOBBYING FROM BEER DISTRIBUTORS AND LIQUOR WINE AND CIGARETTE LOBBYISTS DETERMINED TO SCUTTLE PROPOSED SIN TAXES TO COVER 478 MILLION IN ANNUAL STATE OUTLAYS FOR UNINSURED PEOPLE BUT THAT EFFORT MAINLY STRENGTHENED REFORMERS' DETERMINATION I'VE BEEN HERE 10 YEARS AND I'VE NEVER SEEN ANYTHING LIKE IT SAID REP DENNIS DELWO WHO STEERED THE BILL THROUGH THE HOUSE FOR THEIR PART MR SORENSEN AND THE OTHER LOBBYISTS HADN'T SEEN ANYTHING LIKE WHAT HAPPENED ON THE FLOOR EITHER THE MOOD ON THE BALCONY GREW SOMBER AS THE LEGISLATURE VOTED DOWN BY THIN MARGINS A SUCCESSION OF AMENDMENTS THE BUSINESS LOBBYISTS HAD HELPED CRAFT TO EVISCERATE VARIOUS SECTIONS OF THE BILL A CRUCIAL VOTE CAME ON A PROPOSED AMENDMENT TO DO AWAY WITH THE TAXES THAT WERE DESIGNED TO FINANCE THE PLAN IF THIS PROVISION PASSED THE ENTIRE PROGRAM WOULD UNRAVEL BUT THE REFORMERS TRIUMPHED BY THREE VOTES THE MEASURE THAT FINALLY PASSED IS ONE OF THE MOST AMBITIOUS HEALTH PLANS IN THE NATION IT EXTENDS STATESUBSIDIZED HEALTH INSURANCE TO 500000 UNINSURED WASHINGTON RESIDENTS THE PLAN ALSO INCLUDES ALL THE MANAGED COMPETITION STRATEGIES FOUGHT BY THE INSURERS INCLUDING A CAP ON HEALTH INSURANCE PREMIUMS WASHINGTON'S INSURANCE COMMISSIONER WAS GIVEN ENHANCED POWERS UNDER THE NEW LAW TO INVESTIGATE INCREASES IN HEALTH COSTS COMMISSIONER DEBORAH SENN SAYS ONE OF HER FIRST MOVES WILL BE TO FIND OUT HOW MUCH OF THE SWIFTLY RISING ADMINISTRATIVE COSTS OF HEALTH INSURANCE COMPANIES PARTICULARLY THE BLUE CROSSBLUE SHIELD GROUPS ARE SPENT ON LOBBYING WHEN POLICYHOLDERS SIGN UP FOR SERVICE ARE THEY SIGNING UP FOR HEALTH INSURANCE OR TO HAVE THEIR MONEY SPENT ON A POLITICAL POSITION SHE ASKS IT IS ENTIRELY APPROPRIATE FOR ORGANIZATIONS SUCH AS OURSELVES TO PROVIDE OUR POINT OF VIEW SAYS DONALD P SACCO A SPOKESMAN FOR THE EIGHT WASHINGTON BLUE CROSSBLUE SHIELD COMPANIES WE'RE TALKING ABOUT SOMETHING THAT'S LESS THAN THREE CENTS A MONTH PER SUBSCRIBER THE BLUE CROSSBLUE SHIELD GROUPS ALSO FOUGHT A FIERCE BUT ULTIMATELY UNSUCCESSFUL LOBBYING BATTLE AGAINST A HEALTHCARE REFORM BILL IN FLORIDA ACCORDING TO DOUGLAS COOK THE STATE'S HEALTHCARE DIRECTOR THE BILL PASSED ONLY AFTER GOV LAWTON CHILES THREATENED TO SCUTTLE WAVERING LAWMAKERS' PET PROJECTS THEY THE INSURERS' LOBBYISTS WERE CERTAINLY THE STRONGEST FORCE LOBBYING FOR THE STATUS QUO SAYS MR COOK NOTWITHSTANDING THE RECENT SETBACKS THE INSURERS STILL HAVE CONSIDERABLE POLITICAL MUSCLE JOHN DONAHO WAS FIRED FROM HIS JOB AS MARYLAND INSURANCE COMMISSIONER AFTER HE CRITICIZED THE INSURERS' RESISTANCE TO REGULATION AND EXPOSED THE NEARINSOLVENCY OF THE STATE BLUE CROSS AND BLUE SHIELD PLAN I THINK JOHN WAS A LITTLE ROUGH ON BLUE CROSS A LITTLE ROUGHER THAN HE PROBABLY SHOULD HAVE BEEN GOV WILLIAM D SCHAEFER LATER REMARKED IN THE NATIONAL ARENA THE INSURERS' 11 MILLION OF CONTRIBUTIONS DURING THE PAST TWO YEARS INCLUDES 407047 FOR POLITICAL CONTRIBUTIONS ABOUT TWOTHIRDS OF IT FLOWING THROUGH 15 DIFFERENT EMPLOYEE POLITICAL ACTION COMMITTEES THE REST CAME IN THE FORM OF SOCALLED SOFT MONEY DONATIONS THAT WENT DIRECTLY TO REPUBLICAN AND DEMOCRATIC PARTY FUNDS MEANWHILE 700000 WAS SPENT ON LOBBYISTS OF THAT 300000 WENT TO PUBLIC STRATEGIES WASHINGTON INC A LOBBYING FIRM HEADED BY JOSEPH P O'NEILL WHO WAS EXECUTIVE ASSISTANT TO FORMER SEN LLOYD BENTSEN NOW TREASURY SECRETARY MARY NELL LEHNHARD SENIOR VICE PRESIDENT IN CHARGE OF THE WASHINGTON OFFICE OF THE BLUE CROSS AND BLUE SHIELD ASSOCIATION EXPLAINS TRADITIONALLY WE'VE DONE OUR OWN LOBBYING BUT THE SCOPE AND COMPLEXITY OF THE ISSUES THAT OUR COMPANIES FACED HAVE GROWN BY LIGHT YEARS GREGORY N RACZ CONTRIBUTED TO THIS ARTICLE 9305060046 930506 FASB REFUSES TO ALLOW BANKS FLEXIBILITY IN APPLYING RULE TO VALUE DEBT HOLDINGS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FINANCIAL ACCOUNTING STANDARDS BOARD FURTHER ANGERING BANKS DENIED THE FINANCIAL INSTITUTIONS FLEXIBILITY IN APPLYING A NEW RULE THAT REQUIRES THEM TO VALUE DEBT SECURITIES AT CURRENT MARKET PRICES THE BONDVALUATION RULE APPROVED LAST MONTH WAS INTENDED TO GIVE A MORE ACCURATE PICTURE OF THE BOND HOLDINGS OF BANKS AND INSURANCE COMPANIES WHICH HAVE ALWAYS LISTED SUCH DEBT AT THE INITIAL COST RATHER THAN AT CURRENT VALUE THE EXCEPTION TO THE RULE WHICH TAKES EFFECT WITH 1994 FINANCIAL STATEMENTS IS IF THE FINANCIAL INSTITUTIONS HOLD THE DEBT UNTIL MATURITY IN REFINING THE RULE THE FASB VOTED 7TO0 YESTERDAY TO PLACE STRICT CONDITIONS ON SUCH A SAFE HARBOR IF A BANK DECIDES TO HOLD A BOND ISSUE TO MATURITY BUT THEN TRADES SOME OF THE BONDS BEFORE THEN THE BANK RUNS THE RISK OF HAVING THE ENTIRE ACCOUNT SUBJECT TO THE NEW MARKTOMARKET RULE DENNIS BERESFORD CHAIRMAN OF THE FASB THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS SAID THAT SOME BANKERS AND INSURANCE EXECUTIVES WANTED SOME BREATHING ROOM TO TRADE A CERTAIN PERCENTAGE OF THE INVESTMENT ACCOUNT WITHOUT QUESTIONING THE VALUATION OF OTHER BONDS IN THE ACCOUNT THE REQUESTS RANGED FROM 3 TO 20 MR BERESFORD NOTED MANY BANKS AND OTHER FINANCIAL INSTITUTIONS ARE UPSET WITH THE LATEST FASB MOVE THE RULE WASN'T NEEDED IN THE FIRST PLACE MAKING IT EXCESSIVELY STRICT WILL MAKE IT EXTREMELY DIFFICULT TO WORK WITH SAID WILLIAM J ROBERTS SENIOR VICE PRESIDENT AND CONTROLLER OF FIRST CHICAGO CORP A BANKHOLDING COMPANY WITH 120 BRANCHES IN ILLINOIS MR ROBERTS A MEMBER OF THE 10000MEMBER AMERICAN BANKERS ASSOCIATION'S ACCOUNTING COMMITTEE SAID THE LATEST RESTRICTION WILL CREATE A LOT OF EXCESS PAPERWORK FOR BANKERS AND MOVE THE BOND PORTFOLIO GENERALLY IN THE DIRECTION OF SHORTER MATURITIES WHICH COULD LOWER OUR YIELDS HE SAID THAT THE LATEST FASB VOTE MEANS THAT WHENEVER A SALE OCCURS FROM THE INVESTMENT ACCOUNT THE PRESUMPTION OF GUILT WILL BE ON THE PART OF THE BANK IT WILL HAVE TO DIG ITSELF OUT OF EACH TRANSACTION MARTI SWORDBUK A MANAGER FOR THE 2000MEMBER SAVINGS & COMMUNITY BANKERS OF AMERICA SAID THAT FASB'S DENIAL OF A SAFE HARBOR WILL HURT BANKS' ABILITY TO MANAGE THE RISKS OF SUDDEN INTERESTRATE CHANGES AND CERTAIN LIQUIDITY PROBLEMS IN ANOTHER FASB DEVELOPMENT BANKS WELCOMED THE BOARD'S DELAY OF A RULE COVERING IMPAIRED LOANS FOR ONE YEAR TO 1995 THE RULE WOULD REQUIRE BANKS TO VALUE IMPAIRED OR TROUBLED LOANS AT CURRENT VALUE THE DELAY MAKES SENSE BECAUSE OF THE IMPLEMENTATION PROBLEMS AND GIVES US TIME TO EDUCATE THE INDUSTRY SAID DONNA FISHER MANAGER OF ACCOUNTING POLICY FOR THE BANKERS' ASSOCIATION FEDERAL BANKING REGULATORS STRONGLY PRODDED THE FASB SAYING THAT THEY AND BANKS NEEDED ANOTHER YEAR TO PREPARE FOR THE IMPAIREDLOAN ACCOUNTING CHANGES 9305060045 930506 HEARD ON THE STREET MONEY MANAGER SAYS RAW MATERIALS PRODUCERS HOLD THE KEY TO SUCCESS THE POWER OF PRICING BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRICING POWER WHO'S GOT IT THAT QUESTION HAS PROVOKED A BLOODBATH IN THE STOCK MARKET THIS YEAR TOBACCO FOOD AND DRUG STOCKS HAVE BEEN SHOT DOWN INVESTORS BELIEVE THESE COMPANIES CAN NO LONGER GENERATE 15 ANNUAL EARNINGS GROWTH BY REGULARLY RAISING THE PRICES THEY CHARGE CONSUMERS DO ANY COMPANIES STILL HAVE THAT MUSCLE NEW YORK MONEY MANAGER DALTON GREINER HARTMAN & MAHER IS MAKING A BILLIONDOLLAR BET THAT PRICING POWER IS SHIFTING TO BASIC MATERIALS PRODUCERS THE FIRM IS DUMPING RETAILERS DRUG AND BANK STOCKS AND BUYING STEEL PAPER MACHINERY AND CHEMICAL SHARES IT'S NOT JUST A BET ON SOCALLED CYCLICAL STOCKS SHARES OF COMPANIES WHOSE FORTUNES RISE AND FALL WITH THE ECONOMIC TIDE IT'S A MATTER OF WHO HAS THE POWER TO PASS ON PRICE INCREASES AND WHO DOESN'T PRICING POWER COMES DOWN TO WHO HAS THE UPPER HAND THE BUYER OF A PRODUCT OR THE SELLER SAYS KENNETH GREINER A PARTNER AT THE FIRM WHICH MANAGES 25 BILLION A COMPANY HAS PRICING POWER WHEN THEY CAN RAISE THE PRICES IN EXCESS OF THE INFLATION RATE WHERE'S THAT HAPPENING WE'RE SEEING MORE PRICING POWER FROM A LOT OF COMMODITY BUSINESSES AND REAL PRICING PRESSURE ON COMPANIES THAT DO BUSINESS WITH THE GOVERNMENT AND RETAIL CONSUMERS SAYS MR GREINER PHILIP MORRIS'S CIGARETTE PRICESLASHING WAS THE SHOT HEARD AROUND THE WORLD ANNOUNCING A LOSS OF PRICING POWER FOR CONSUMER GOODS MEANWHILE THERE ARE SIGNS OF PRICING POWER IN SOME OF THE GRITTY CORNERS OF THE STOCK MARKET CONSIDER BETHLEHEM STEEL ONE OF DALTON GREINER'S HOLDINGS LAST WEEK ANNOUNCED ITS SECOND PRICE BOOST FOR STEEL PLATE THIS YEAR THE STOCK IS UP 21 IN 1993 INLAND STEEL ANOTHER OF THE FIRM'S POSITIONS ALSO RECENTLY ANNOUNCED PRICE INCREASES EDWARD HYMAN WHO PLOTS THE ECONOMY'S PATH AS HEAD OF INTERNATIONAL STRATEGY AND INVESTMENT AN ECONOMIC RESEARCH FIRM SAYS A BET ON RAW MATERIALS PRODUCERS LOOKS RISKY FOR THE REST OF 1993 LOOKING DOWN THE BARREL RIGHT NOW I DO SEE A BIT OF WEAKNESS IN DEMAND FOR RAW MATERIALS ECONOMIC GROWTH WAS TEPID IN THE FIRST QUARTER HE EXPLAINS AND INVENTORIES ARE NOW STACKED TALLER THAN ECONOMISTS BELIEVED BUT LOOKING AHEAD TO 1994 AND 1995 MR HYMAN THINKS THAT RAW MATERIALS PRODUCERS WILL HAVE BETTER PRICING FLEXIBILITY THE PRICE OF THESE RAW MATERIALS RELATIVE TO CONSUMER ITEMS ARE WAY DOWN THEY'RE CHEAP MR HYMAN SAYS SO WHAT WILL DRIVE DEMAND AN EXPANDING US ECONOMY THIS YEAR FOLLOWED BY A SYNCHRONIZED GLOBAL EXPANSION BY 1995 HE THINKS IN REVAMPING ITS PORTFOLIOS OVER THE PAST THREE MONTHS DALTON GREINER HAS SOLD SHARES OF BRUNSWICK CORP A MAKER OF RECREATIONAL MARINE PRODUCTS RETAILER TJX COS BUSINESS FORMS MAKER REYNOLDS & REYNOLDS JEWELRY MAKER JAN BELL MARKETING AND DRUG GIANT PFIZER THE FIRM ALSO PARED BACK SOME OF ITS LARGE BANK STOCK HOLDINGS SELLING FIRST ALABAMA BANCSHARES NS BANCORP AND CNB BANCSHARES LOADING UP FOR THEIR BIG PLAY ON PRODUCER PRICING POWER DALTON GREINER IN ADDITION TO THE TWO STEEL ISSUES IS BUYING NATURAL GAS COMPANIES SUCH AS ORYX ENERGY AND SEAGULL ENERGY OIL AND GAS SERVICE COMPANIES SUCH AS NOBLE DRILLING ROWAN TIDEWATER AND OCEANEERING INTERNATIONAL MACHINERY COMPANIES SUCH AS CATERPILLAR AND COOPER INDUSTRIES AND PAPER COMPANIES SUCH AS SCOTT PAPER WILLAMETTE AND GEORGIAPACIFIC THE FIRM ALSO HAS PURCHASED CHEMICAL COMPANIES SUCH AS ROHM & HAAS AND IMC FERTILIZER AS WELL AS THE RAW MATERIAL PROVIDERS TO THE COMPUTER INDUSTRY SEMICONDUCTOR MAKERS SUCH AS NATIONAL SEMICONDUCTOR AND ADVANCED MICRO DEVICES MR GREINER NOTES THAT TECHNOLOGY STOCKS SWING ON THEIR OWN PRODUCT CYCLES MORE THAN THE NATIONAL ECONOMIC CYCLE BUT CHIPS ARE INDEED THE RAW MATERIAL OF COMPUTING DALTON GREINER HAS A VALUE APPROACH TO STOCKPICKING FAVORING COMPANIES THAT ARE CHEAP COMPARED WITH ASSETS OR CURRENT EARNINGS BUT THE PRICING POWER THEME IS A CLASSIC GROWTHSTOCK INVESTING IDEA THE THEORY IS THAT EXPANDING REVENUES THROUGH VOLUME OR PRICE INCREASES ARE A SURE SIGN OF PRODUCT DEMAND AND THAT SHOULD QUICKLY LEAD TO HIGHER PROFITS BUT DALTON GREINER'S BET IS ALSO A PLAY ON IMPROVING PRODUCTIVITY WHEN STEEL MILLS OR GAS PIPELINES CRANK UP CAPACITY THE COST OF PRODUCING EACH UNIT FALLS SHARPLY PUTTING FATTER PROFITS ON THE BOTTOM LINE MR GREINER DOESN'T FORESEE ECONOMIC GROWTH GREATER THAN 25 TO 3 OVER THE NEXT TWO OR THREE YEARS BUT NOT ALL SECTORS OF THE ECONOMY EXPAND AT THE SAME RATE AS GROSS DOMESTIC PRODUCT DALTON GREINER BELIEVES THAT RAW MATERIALS PRODUCERS WILL BE MUCH MORE ACTIVE THAN THE OVERALL RATE OF THE ECONOMY BECAUSE THE ECONOMIC EXPANSION WILL BE LED BY INDUSTRIAL PRODUCTION INSTEAD OF CONSUMER PURCHASES WHAT CAN GO WRONG MR GREINER WORRIES THAT BAD TAX AND TRADE POLICIES COMING OUT OF THE WHITE HOUSE COULD SAP ECONOMIC CONFIDENCE THE PRIMARY RISK IS THAT THE ECONOMY ROLLS OVER HE SAYS THAT WOULD BE DISASTROUS FOR THESE COMPANIES 9305060044 930506 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN GOLF'S A CASH COW FOR MANY TOWNS BUT THE EASYMONEY DAYS SEEM TO BE OVER SOME MUNICIPAL GOLF COURSES PILE ON GREENS FEES TO HELP AILING TOWN COFFERS AND TO SERVICE THEIR OWN HIGH DEBT LOADS IN THE SAN FRANCISCO AREA PALO ALTO BOOSTS GREENS FEES 4 TO 9 TO MAINTAIN ANNUAL PROFITS OF 250000 TO 300000 ALAMEDA'S LINKS GENERATE ABOUT 350000 A YEAR BUT MUCH OF THAT GOES TO HELP DEFRAY A POTENTIAL 3 MILLION CITY DEFICIT SAN LEANDRO RAISES FEES 15 BUT STILL RUNS IN THE RED AND MAY GIVE CONTROL TO A VENDOR WITH FINANCING TIGHT MANY OF THE 91 PUBLIC COURSES BEING BUILT THIS YEAR ARE PUBLICPRIVATE JOINT VENTURES BUT A 1991 MOVE TO PRIVATIZE THREE HOUSTON GOLF COURSES HIT A TRAP OUTCRY OVER THE PLAN BECAUSE IT INVOLVED SOME LAND THAT HAD BEEN DONATED TO THE CITY FEW TOWNS TRY A STRAIGHT BOND ISSUE TO FINANCE NEW LINKS IT'S TOO RISKY SAYS STANDARD & POOR'S ANALYST STEVE NELLI HE EXPLAINS THAT GOLF COULD FADE IN 20 YEARS OR BAD WEATHER MAY WRECK A SEASON INSTEAD TOWNS MAY LEASE LAND TO DEVELOPERS OR FLOAT LEASEOBLIGATION BONDS THAT IN A DEFAULT AWARD TITLE TO HOLDERS BIG MOMS HELP THE BIGSIZE MARKET BLOSSOM FOR MAINSTREAM RETAILERS SHOPPING FOR MOMS WHO AREN'T SO LITTLE MAY BE EASIER THIS MOTHER'S DAY AS MORE STORES OFFER LARGE SIZES BLOOMINGDALE'S SAYS ITS SALES OF LARGER WOMEN'S SIZES HAVE OUTPACED GROWTH IN ITS OTHER READYTOWEAR AREAS BY AT LEAST FIVEFOLD IN FOUR YEARS IN 1992 TOTAL RETAIL SALES OF LARGE SIZES ROSE 11 SAYS CONSULTANT KURT SALMON & ASSOCIATES BIG FASHION OUTPACES MOST OTHER APPAREL PARTLY BECAUSE COMPETITION ISN'T AS GREAT BUT THAT MAY CHANGE AS OUTLETS PROLIFERATE WE'VE HAD ENORMOUS GROWTH BEYOND WHAT WE PROJECTED SAYS BETTY PASTEUR OF SAKS'S BIGSIZE SALON Z STARTED IN 1991 AND NOW IN 38 STORES AND FORGOTTEN WOMAN A PIONEER OF BIG WOMEN'S FASHION SAYS IT PLANS TO DOUBLE OUTLETS TO 38 BY 1996 AS UPSCALE OUTLETS EXPAND SO DO THE HIGHEND APPAREL MAKERS AMONG THE NEW MANUFACTURERS IN THE FIELD ARE ELLEN TRACY AND ANDREA JOVINE PERSHARE NET GETS MURKIER IN AN ERA OF DOWNSIZING AND ACCOUNTING QUIRKS RESTRUCTURINGS CAN CAUSE PERSHARE NET TO BEAR LESS AND LESS RELATIONSHIP TO ECONOMIC REALITY SAYS WILLIAM RUANE OF RUANE CUNNIFF & CO INVESTMENT ADVISER TO THE SEQUOIA FUND RECENT STAGGERING ONETIME WRITEOFFS AT SOME FIRMS MAY DISTORT TRUE EARNINGS FOR SEVERAL YEARS HE SAYS POSITIVES GET LOST TOOLIKE THE DOLLAR VALUE OF GOODWILL SO MR RUANE EVALUATES ALL CASH FLOW ITEMS IF A COMPANY EARNS 500 MILLION BUT PUTS 600 MILLION IN THE BANK I'M JUST INTERESTED IN 600 MILLION CASH FLOW CAN BE A TOUGH ONE FOR PEOPLE TO FIGURE SAYS JOHN MARKESE HEAD OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS OTHER GAUGES INCLUDE DIVIDENDS AND PRICETOBOOK VALUE HE SAYS THEODORE ARONSON OF ARONSON & FOGLER A PHILADELPHIA MONEY MANAGER LOOKS AT THE MANAGEMENT FACTOR A COMPOSITE OF RETURN ON ASSETS BOOK VALUE GROWTH AND DEBT CHANGETO READ CASHGENERATING ABILITY MR ARONSON SAYS QUARTERLY EARNINGS ARE MANIPULATED AND HAVE BEEN SINCE THE FIRST ACCOUNTANT WALKED OUT OF THE GARDEN OF EDEN THIS YEAR'S BIG ACCOUNTING ITEM ONETIME HITS FOR FUTURE RETIREMENT COSTS THEY AREN'T PETS THEY'RE COMPANION ANIMALS THE POLITICALLY CORRECT TERM JEFF'S COMPANION ANIMAL SHELTER IN WESTPORT MASS PAIRS ADULT DOGS WITH ELDERLY PEOPLE MEANWHILE A COMPANION ANIMAL FUND AT IOWA STATE UNIVERSITY RAISES FUNDS FOR ITS COLLEGE OF VETERINARY MEDICINE DONORS GIVE IN MEMORY OF DEAD ANIMALS WOMEN ON THE MOVE FOR THE FIRST TIME IN 26 YEARS WOMEN RELOCATION EXECUTIVES ACCOUNT FOR MORE THAN HALF THE RESPONDENTS TO AN ANNUAL SURVEY BY ATLAS VAN LINES PART OF THE REASON IS THAT RELOCATIONS NOW ARE LIKELY TO INVOLVE HUMANRESOURCE STAFFERS NOT JUST TRAFFIC MANAGERS HANDSHAKES RETURN TO THE UNIVERSITY OF MAINE AFTER A 40YEAR HIATUS EACH GRADUATE WILL GET A HANDSHAKE ALONG WITH A DIPLOMA AT SATURDAY'S COMMENCEMENT THE GESTURE SEEKS TO GIVE PERSONAL ATTENTION TO EACH STUDENT AND IS EXPECTED TO ADD MORE THAN AN HOUR TO THE CEREMONY PATIENT HELPERS GAIN FAVOR AS HOSPITALS AIM FOR BETTER QUALITY MANAGEMENT SOME HOSPITALS BLEND PATIENT WATCHDOG AND VALET FUNCTIONS IN A JOB THAT INVOLVES SERVING ALL MEALS CLEANING ROOMS RUNNING ERRANDS AND DOING BASIC TECHNICAL TASKS FOR A SMALL GROUP OF PATIENTS SERVICEMASTER AN INSTITUTIONAL SERVICES FIRM DEVELOPS PATIENT SERVICE ASSOCIATES WORKERS WHO DO THE JOBS OTHERWISE PARCELED OUT TO 16 OR SO STAFFERS IN A TYPICAL PATIENT STAY LOWER COSTS FOR NURSE OVERTIME AND TEMPORARIES CAN SOMETIMES HELP FUND THE PROGRAM SAYS THE FIRM PATIENT SATISFACTION IS SKYROCKETING SAYS KEN CREASMAN OF SERVICEMASTER IN NEW JERSEY MONMOUTH MEDICAL CENTER ADDED THE ASSOCIATES AND SAYS IT SOON SAW A HALT TO FLASHING CALL BUTTONS RIVERSIDE HOSPITAL IN TOLEDO OHIO PIONEERED THE PROGRAM THE AMERICAN HOSPITAL ASSOCIATION NOTES PATIENT REPRESENTATIVES AND NURSE EXTENDERS HAVE BEEN AROUND FOR YEARS THE NEW POSITION TAKES THE IDEA FURTHER BY CREATING BRIDGE JOBS FOR HOUSEKEEPERS AND OTHERS SERVICEMASTER'S STAFF WEARS UNIFORMS SIMILAR TO THOSE OF FLIGHT ATTENDANTS BRIEFS CINNABON INC SEATTLE BAKER OF GOOEY CINNAMON ROLLS MAILS PRESS RELEASES SCENTED WITH THE SPICE A STREET VENDOR IN THE HEART OF MANHATTAN'S WALL STREET DISTRICT HAWKS NECK CHAINS WHILE SINGING OUT STOLEN GOLD STOLEN GOLD 9305060043 930506 INTERNATIONAL BOSNIAN SERB PARLIAMENT REJECTS TREATY POPULAR VOTE ON PACT SET MOVE COMES AS RUSSIA PUTS PRESSURE ON ALLIES BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL THE SELFSTYLED BOSNIAN SERB PARLIAMENT AFTER DEBATING INTO THE EARLY MORNING HOURS TODAY REJECTED A UN PEACE PLAN THAT HAD BEEN SIGNED BY THE BOSNIAN SERB LEADER BUT CALLED FOR A POPULAR VOTE ON THE PLAN ON MAY 15 AND 16 THE VOTE COMING AT THE END OF A 17HOUR SESSION WAS MADE IN THE FACE OF INCREASING INTERNATIONAL PRESSURE WHICH GREW YESTERDAY AS RUSSIA AGREED TO CONTRIBUTE TROOPS TO AN INTERNATIONAL PEACEKEEPING FORCE IN BOSNIA IF THE ACCORD WAS APPROVED THE RUSSIANS WARNED THEIR OLD BOSNIAN SERB ALLIES OF A KIND OF HELL IF THE SERBS DIDN'T LIVE UP TO THE INTERNATIONALLY NEGOTIATED AGREEMENT IT IS RARE THAT HELL IS DESCRIBED IN SPECIFIC TERMS RUSSIAN FOREIGN MINISTER ANDREI KOZYREV SAID IN MOSCOW AFTER MORE THAN FOUR HOURS OF MEETINGS WITH US SECRETARY OF STATE WARREN CHRISTOPHER BUT WITH A PEACEFUL RESOLUTION LOOKING MORE UNLIKELY MR CHRISTOPHER NOW MUST FOCUS ON WINNING ALLIED SUPPORT FOR TOUGHER MEASURES INCLUDING MILITARY OPTIONS DURING HIS TRIP TO EUROPE THIS WEEK HE HAS FOUND MUCH BROADER AGREEMENT ABOUT PEACEKEEPING OPTIONS THAN MILITARY OPTIONS WHICH INCLUDE BOMBING AND MOVING TO LIFT THE ARMS EMBARGO ON BOSNIA ALLOWING BOSNIAN MUSLIMS TO DEFEND THEMSELVES THE WHITE HOUSE HAD NO IMMEDIATE COMMENT ON THE BOSNIAN SERB PARLIAMENT'S REJECTION OF THE ACCORD BOSNIAN SERB LEADER RADOVAN KARADZIC WHO INITIALED THE PEACE AGREEMENT LAST WEEKEND AND SERBIAN PRESIDENT SLOBODAN MILOSEVIC TOLD THE 82 MEMBERS OF THE PARLIAMENT THAT THEY HAD NO CHOICE BUT TO SIGN GIVEN THE ECONOMIC SANCTIONS AND MILITARY THREATS FROM THE WEST BUT HARDLINERS DENOUNCED THE AGREEMENT AS TANTAMOUNT TO TREASON THE RUSSIAN WARNINGS WHILE INTENTIONALLY VAGUE COULD TURN THE SCREWS EVEN FURTHER ON THE SERBS MANY SERBS HAD BEEN COUNTING ON THEIR LONGTIME ALLY TO SHIELD THEM FROM THE WEST'S MOUNTING THREATS OF MILITARY INTERVENTION RUSSIAN PRESIDENT BORIS YELTSIN HAS COME UNDER PRESSURE FROM HIS CONSERVATIVEDOMINATED PARLIAMENT TO DO JUST THAT IN LATE APRIL RUSSIA'S PARLIAMENT DEMANDED THAT THE GOVERNMENT USE ITS SECURITY COUNCIL VETO TO BLOCK ANY UN MILITARY ACTION AGAINST THE SERBS US OFFICIALS HAVE EXPRESSED SOME CONCERN THAT MR YELTSIN COULD BE WEAKENED POLITICALLY BY BEING PRESSED TO SUPPORT PRESIDENT CLINTON'S PROPOSAL FOR POSSIBLE LIMITED MILITARY INTERVENTION AGAINST THE SERBS IN BOSNIA BUT SINCE HIS VICTORY IN A NATIONAL REFERENDUM LAST MONTH MR YELTSIN'S PATIENCE WITH THE SERBS HAS WORN THIN AND HIS CONFIDENCE IN HIS OWN POLITICAL POSITION HAS GROWN NEVERTHELESS THE RUSSIAN LEADER IS STILL WARY OF APPEARING TO ENCOURAGE MILITARY ATTACKS ON THE SERBS IN A 50MINUTE MEETING WITH MR CHRISTOPHER THE RUSSIAN PRESIDENT DECLINED TO DISCUSS PRESIDENT CLINTON'S MILITARY PLAN A FACT CALLED TO REPORTERS' ATTENTION BY HIS SPOKESMAN AFTER THE MEETING FURTHER OPTIONS WERE NOT DISCUSSED VYACHESLAV KOSTIKOV SAID MR YELTSIN CHOSE TO FOCUS THE DISCUSSION ON PLANNING A PEACEKEEPING MISSION SHOULD THE SERBS ACCEPT THE ACCORD AND A JOINT STATEMENT ISSUED BY THE TWO GOVERNMENTS AFTER YESTERDAY'S MEETINGS DIDN'T USE THE TERM MILITARY STEPS THE BRITISH AND THE FRENCH WERE WILLING TO TALK ABOUT UNSPECIFIED MILITARY OPTIONS WHILE THEY REMAIN WARY OF MR CLINTON'S IDEA OF LIFTING THE ARMS EMBARGO ON BOSNIA'S GOVERNMENT AND USING AIR STRIKES TO CONTAIN FURTHER SERBIAN AGGRESSION YESTERDAY'S JOINT STATEMENT DID SAY THAT RUSSIA AND THE US AGREED TO DISCUSS NEW AND TOUGHER MEASURES IF NEEDED AND THAT NO ACTIONS WOULD BE EXCLUDED US OFFICIALS SAID THAT SOME OF THE TOUGHEST LANGUAGE IN THE STATEMENT WAS MR YELTSIN'S AND THAT MR YELTSIN DIDN'T RULE OUT ANY OF PRESIDENT CLINTON'S PROPOSALS HE CLEARLY WANTED TO USE THE MEETING TO SEND A VERY STRONG SIGNAL TO THE SERBS SAID A SENIOR US OFFICIAL WE DID NOT GET STIFFED THE INDEPTH DISCUSSION OF PRESIDENT CLINTON'S MILITARY PLAN WAS LEFT TO MR KOZYREV THE FOREIGN MINISTER ALREADY IS ANATHEMA TO THE RUSSIAN PARLIAMENT WHICH ACCUSES HIM OF BEING TOO READY TO SERVE THE INTERESTS OF THE WEST THE MINISTER URGED REPORTERS TO TAKE LITERALLY A STATEMENT THAT NO MEASURES WOULD BE EXCLUDED FROM CONSIDERATION WITH A SMILE HE VOLUNTEERED THE SUGGESTION THAT HELL MIGHT BE MORE THREATENING IF LEFT TO THE IMAGININGS OF THE SINNER MR KOZYREV SAID THAT RUSSIA WOULD TAKE RESPONSIBILITY FOR PATROLLING A DEMILITARIZED NORTHERN CORRIDOR THAT WOULD CONNECT SERBIAN ENCLAVES IN WESTERN BOSNIA WITH SERBIA US OFFICIALS COULDN'T SAY WHETHER RUSSIAN PEACEKEEPERS WOULD COME UNDER THE COMMAND OF THE NORTH ATLANTIC TREATY ORGANIZATION EARLIER THIS YEAR RUSSIA PROMISED TO PARTICIPATE IN A USORGANIZED AIRDROP OF RELIEF SUPPLIES OVER BOSNIA BUT SO FAR THE PROMISE HAS GONE UNFULFILLED MR CHRISTOPHER IS TO MEET TODAY WITH NATO AND OTHER EUROPEAN OFFICIALS TO DISCUSS BOSNIA FURTHER ADI IGNATIUS CONTRIBUTED TO THIS ARTICLE 9305060042 930506 REVIEW & OUTLOOK EDITORIAL DOGS' AND THEIR MASTERS THE FRENCH POLITICAL CLASS NEVER FAILS TO LIVE UP TO ITS REPUTATION FOR INSULARITY AND HAUTEUR FOR THE LAST FEW DAYS THEY HAVE BEEN USING THE SUICIDE OF PIERRE BEREGOVOY AS AN OCCASION TO STRIKE BACK AT THE MEDIA THAT IS TO COUNTERATTACK THOSE WHO HAVE REPORTED ON THE POLITICAL CLASS'S ALLTOOOBVIOUS FAILINGS FRANCOIS MITTERRAND WHOSE ADMINISTRATION HAS BEEN UNDONE BY EVERUNFOLDING CORRUPTION SCANDALS DECLARED THAT MR BEREGOVOY HAD BEEN THROWN TO THE DOGS OTHERS IN FRANCE'S POLITICAL ESTABLISHMENT HAVE SAID MR BEREGOVOY HAD BEEN DRAGGED THROUGH THE MUD OR THAT HE WAS MURDERED BY AN ELEGANT FASCISM ONE CAN ONLY HAVE PROFOUND RESPECT FOR PIERRE BEREGOVOY'S ACCOMPLISHMENTS AND FEEL SADNESS AT HIS DEATH BUT WE DON'T FIND IT FITTING THAT THE DEATH OF SUCH A MAN BE USED AS A PRETEXT TO REDUCE THE PUBLIC'S ABILITY TO SCRUTINIZE ITS SERVANTS WHAT THE DOGS IN THE MEDIA DID WAS TO REPORT ON MR BEREGOVOY'S QUESTIONABLE TAXFREE LOAN THAT STORY WAS ACCURATE THOUGH IT INCONVENIENCES POLITICIANS TO HAVE REPORTERS LOOKING OVER THEIR SHOULDERS SURELY PUBLICIZING SUCH BEHAVIOR IS EXACTLY WHAT THE PRESS IS SUPPOSED TO BE DOING MANY IN THE PRESS ALSO HARSHLY CRITICIZED MR BEREGOVOY'S MONETARY POLICY STRONG OPINIONS STRONGLY EXPRESSED THAT'S WHAT EDITORIALISTS ARE FOR THE IRONIC THING IS THAT THE FRENCH MEDIA DOESN'T EXACTLY SET GLOBAL STANDARDS FOR INDEPENDENCE OR TOUGH INVESTIGATIVE REPORTING THE FRENCH SYSTEM SEEMS DESIGNED TO KEEP FACTS FROM COMING TO PUBLIC VIEW SO OF COURSE THE INFORMATION VACUUM FILLS WITH RUMOR AND INNUENDO OF COURSE THE PRESS HAS FLAWS REPORTERS HAVE A PACK TENDENCY PEER PRESSURE IS TURNED ON FELLOW JOURNALISTS WHO VIOLATE POLITICALLY CORRECT ORTHODOXIES BUT THE RECENT HISTORY OF FRANCE IS NOT THE STORY OF THE PRESS GOING BERSERK IT IS THE STORY OF THE POLITICAL CLASS LOSING THE CONFIDENCE OF THE PEOPLE IT IS SUPPOSED TO BE SERVING THE ELECTION RESULTS SHOW THAT IT IS NOT JUST THE MEDIA BUT THE GENERAL POPULACE AS WELL WHO FEEL THIS IF THERE HAS BEEN MORE CRITICAL ATTENTION IT IS BECAUSE THERE HAS BEEN SO MUCH TO BE CRITICAL ABOUT THAT HAS BEEN TRUE NOT ONLY IN FRANCE BUT ALSO IN THE UNITED STATES FOR THE PAST 100 DAYS AND CERTAINLY FOR THE PAST FOUR YEARS FRANCOIS MITTERRAND WILL NOT BE THE LAST FAILED POLITICIAN TO CARP AT HIS PUBLIC CRITICS 9305060041 930506 LECHTERS APRIL SALES ROSE 18 HARRISON NJ LECHTERS INC A UNIT OF BELSCOT RETAILERS INC REPORTED 199 MILLION IN SALES FOR THE FOURWEEK PERIOD ENDED MAY 1 AN 18 INCREASE FROM THE YEAREARLIER 168 MILLION COMPARABLE STORE SALES DECREASED 29 THE SPECIALTY HOUSEWARES CHAIN'S SALES FOR THE 13 WEEKS ENDED MAY 1 ROSE 22 TO 645 MILLION FROM 529 MILLION COMPARABLE STORE SALES FOR THE PERIOD SLIPPED 17 9305060040 930506 BUSINESS BRIEF MEDICAL CARE AMERICA PLANS BUYBACK PROFIT FELL 32 IN 1ST PERIOD DALLAS MEDICAL CARE AMERICA INC WHOSE STOCK PRICE HAS FALLEN IN RECENT MONTHS AS A RESULT OF PROBLEMS IN THE HOME INFUSION BUSINESS ANNOUNCED PLANS TO BUY BACK AS MANY AS 18 MILLION OF ITS 367 MILLION OUTSTANDING COMMON SHARES SEPARATELY THE HEALTHCARE PROVIDER SAID FIRSTQUARTER NET INCOME FELL 32 TO 118 MILLION OR 32 CENTS A SHARE FROM 174 MILLION OR 46 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 11 TO 154 MILLION FROM 1389 MILLION AS A 24 INCREASE IN SURGERY CENTER REVENUE OFFSET A 7 DROP IN NET REVENUE FROM ITS INFUSION DIVISION THE COMPANY HAD PREVIOUSLY SIGNALED THAT NET WOULD LIKELY FALL DURING THE QUARTER AS IT CONTINUES TO STRUGGLE WITH PRICE DECLINES IN ITS BIG HOME INFUSION BUSINESS WHICH PROVIDES INTRAVENOUS DRUG AND NUTRITION THERAPY TO PATIENTS AT HOME MEDICAL CARE ALSO SAID IT EXPECTS TO INCUR FURTHER RESTRUCTURING CHARGES THIS YEAR WHILE CONTINUING TO REORGANIZE ITS OPERATIONS TO IMPROVE PROFIT MARGINS SINCE IT WAS FORMED IN SEPTEMBER BY A MERGER BETWEEN MEDICAL CARE INTERNATIONAL INC AND CRITICAL CARE AMERICA INC THE COMPANY HAS OVERHAULED ITS MANAGEMENT CUT ITS WORK FORCE SLASHED ITS PRICES AND REVAMPED ITS MARKETING STRATEGY DESPITE MEDICAL CARE'S EFFORTS TO BOOST LACKLUSTER EARNINGS THE COMPANY'S STOCK PRICE HAS FALLEN ABOUT 75 FROM A HIGH OF 58 A SHARE IN SEPTEMBER THE STOCK CLOSED YESTERDAY AT 14625 UP 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING JONATHAN R BOND THE COMPANY'S SENIOR VICE PRESIDENT CALLED THE STOCK A GOOD INVESTMENT AT THESE PRICES BUT ANALYST ROBERT HOEHN AT BEAR STEARNS & CO SAID HE'D RATHER SEE THE COMPANY KEEP THEIR CASH IN POCKET UNTIL BUSINESS BEGINS TO REBOUND BUYING OUT DOCTOROWNED MEDICAL FACILITIES WOULD ALSO BE A BETTER INVESTMENT MR HOEHN ARGUED 9305060039 930506 INTERNATIONAL TRAFALGAR HOUSE POSTS LOSS FOR ITS FIRST HALF NAMES NEW CHAIRMAN SPECIAL TO THE WALL STREET JOURNAL LONDON UK SHIPPING PROPERTY AND ENGINEERING CONGLOMERATE TRAFALGAR HOUSE PLC POSTED A LOSS FOR THE FISCAL FIRST HALF ENDED MARCH 31 AND SLASHED ITS DIVIDEND 72 BUT THE COMPANY'S STOCK ROSE AS IT APPOINTED A PROMINENT HONG KONG BUSINESSMAN AS ITS NEW CHAIRMAN THE BRITISH COMPANY WHOSE INTERESTS INCLUDE THE CUNARD CRUISE LINES AND THE RITZ HOTEL OF LONDON SAID SIMON KESWICK THE HEAD OF HONGKONG LAND HOLDINGS LTD WILL TAKE OVER AS CHAIRMAN MAY 26 HONGKONG LAND HOLDS 251 OF TRAFALGAR ACQUIRED AFTER A HOSTILE RAID AGAINST TRAFALGAR IN OCTOBER HONGKONG LAND IS ITSELF CONTROLLED BY JARDINE MATHESON HOLDINGS LTD A GIANT HONG KONG CONGLOMERATE HONGKONG LAND HAS BEEN SHAKING UP TRAFALGAR MANAGEMENT SINCE ACQUIRING ITS STAKE IN TRADING ON THE LONDON EXCHANGE TRAFALGAR SHARES ROSE THREE PENCE OR 33 TO 95 PENCE 149 FOR THE HALF TRAFALGAR SWUNG TO A PRETAX LOSS OF 976 MILLION 1529 MILLION IN THE FISCAL HALF THAT ENDED MARCH 31 COMPARED WITH A PROFIT OF 54 MILLION A YEAR EARLIER THE LOSS WAS JUST SLIGHTLY LARGER THAN EXPECTED BY ANALYSTS THE DIVIDEND CUT TO 125 PENCE FROM 440 PENCE WAS IN LINE WITH EXPECTATIONS THE PRETAX LOSS INCLUDES AN EXCEPTIONAL CHARGE OF 120 MILLION TO COVER A WRITEDOWN OF PROPERTY INTERESTS ALONG WITH COSTS OF LAYOFFS AND RESTRUCTURING THE CURRENT ACTING CHAIRMAN ALAN CLEMENTS WILL BECOME A DEPUTY CHAIRMAN OF THE GROUP AMONG OTHER MANAGEMENT CHANGES DAVID GAWLER CHIEF FINANCIAL OFFICER OF HONGKONG LAND WILL BECOME FINANCE DIRECTOR OF TRAFALGAR IN JUNE MR GAWLER SUCCEEDS JOHN ANSDELL WHO IS TO LEAVE THE GROUP DURING THE NEXT TWO MONTHS ALONG WITH DERMOT MCDERMOTT CHAIRMAN OF THE CUNARD LEISURE DIVISION 9305060038 930506 LAW LEGAL BEAT PATENT FIRM LOOKS TO RUSSIA FOR TECHNOLOGY BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL IN AN UNUSUAL BIT OF LEGAL ENTREPRENEURSHIP A US PATENT LAW FIRM IS WORKING TO BRING RUSSIAN TECHNOLOGY TO US COMPANIES AND TO SHARE IN THE PROFITS THE VENTURE BY KENYON & KENYON NEW YORK WAS MADE POSSIBLE TWO YEARS AGO WHEN THE BREAKUP OF THE SOVIET UNION FREED RUSSIAN SCIENTISTS OF ANY LEGAL RESTRICTIONS ON THE SALE OF THEIR TECHNOLOGY TO US COMPANIES THE LAWYERS REALIZED THAT TO REACH THESE COMPANIES THE SCIENTISTS WOULD NEED US LEGAL KNOWHOW AS WELL AS VENTURE CAPITAL SO WITH SEVERAL OTHER INVESTORS KENYON & KENYON FORMED A COMPANY CALLED SCIENTIFIC DIMENSIONS BASED IN CAMBRIDGE MASS SCIENTIFIC DIMENSIONS SIGNS UP THE SCIENTISTS AND RAISES THE CAPITAL NEEDED TO FUND THEIR WORK IN RUSSIA WHILE KENYON & KENYON LAWYERS HELP THE CLIENTS OBTAIN US PATENTS FOR THEIR INVENTIONS ONCE THE RUSSIAN TECHNOLOGY IS PROTECTED UNDER US PATENT LAW SCIENTIFIC DIMENSIONS HOPES TO INTEREST US COMPANIES IN BUYING LICENSES TO DEVELOP THE TECHNOLOGY INTO PRODUCTS THAT WOULD BE SOLD HERE SCIENTIFIC DIMENSIONS' PRESIDENT CHARLES A GAMER JR A FORMER COMPUTER MANUFACTURING AND SALES MANAGER SAYS THE COMPANY ALREADY HAS RECEIVED 400 PROPOSALS FROM THE RUSSIANS AND KENYON & KENYON SO FAR HAS FILED SEVEN APPLICATIONS FOR PATENTS MR GAMER SAYS THAT ONE OF THE MORE PROMISING PIECES OF RUSSIAN TECHNOLOGY IS A VIRAL ATTACHMENT INHIBITOR THAT CAN BE USED IN CANCER RESEARCH ANOTHER PROJECT INVOLVES A HIGHSPEED PROCESS FOR EXTRACTING METAL USED TO MAKE COMPUTER CHIPS AND SOLAR PANELS FOR SATELLITES COMPANY OFFICIALS ESTIMATE THAT IT WILL TAKE THREE YEARS OR MORE TO GET MOST BIOTECH AND METALLURGICAL INVENTIONS THROUGH THE PATENT PROCESS AND INTO THE LICENSING STAGE WHEN REVENUE CAN BEGIN TO FLOW IN SCIENTIFIC DIMENSIONS PLANS TO TAKE A 50 SHARE OF ANY ROYALTIES THAT RESULT FROM THE LICENSE AGREEMENTS IN ADDITION KENYON & KENYON WILL BILL SCIENTIFIC DIMENSIONS FOR LEGAL WORK THOUGH AT REDUCED RATES UNTIL THE COMPANY TURNS A PROFIT HOWEVER THE LAW FIRM ISN'T CHARGING FOR ITS WORK SO IF THE COMPANY FAILS THE LAW FIRM WILL LOSE ITS INITIAL INVESTMENT AN AMOUNT IT WON'T DISCLOSE AND ITS UNPAID TIME KENYON & KENYON PARTNER EDWARD GREASON SAYS THE RISK IS WORTH TAKING BECAUSE TAPPING INTO SCIENTIFIC DIMENSIONS IS LIKE HAVING A CLIENT THAT IS ALMOST AN ENTIRE COUNTRY A COUNTRY THAT HAS ENORMOUS SCIENTIFIC TALENT SCIENTIFIC DIMENSIONS IS AN UNUSUALLY BOLD VENTURE FOR A LAW FIRM ON TWO ACCOUNTS FIRST MOST LAW FIRMS THAT HAVE MOVED INTO RUSSIA HAVE DONE SO CAUTIOUSLY BY LIMITING THEIR RUSSIAN OPERATIONS TO THINLY STAFFED MOSCOW OFFICES BUT SCIENTIFIC DIMENSIONS HAS A MUCH BIGGER PRESENCE WITH TWO OFFICES IN RUSSIA AND TWO IN UKRAINE AND WITH 32 NONWESTERNERS MOSTLY SCIENTISTS AT WORK IN THESE OUTPOSTS AND SECOND NO OTHER LAW FIRM HAS APPROACHED THE RUSSIAN MARKET BY BUYING INTO A SEPARATE COMPANY A RELATIONSHIP THAT CREATES POTENTIAL ETHICAL ENTANGLEMENTS BETWEEN THE LAW FIRM THE COMPANY IT OWNS AND THE CLIENTS SHARED BY BOTH FOR YEARS THE AMERICAN BAR ASSOCIATION HAS OPPOSED SUCH RELATIONS EVEN THOUGH SOME INDIVIDUAL STATES HAVE ALLOWED THEM LAST YEAR THE ABA DROPPED ITS OPPOSITION STEPHEN GILLERS A LEGAL ETHICS EXPERT AT NEW YORK UNIVERSITY SCHOOL OF LAW SAYS KENYON & KENYON LAWYERS WORKING ON BEHALF OF THE SCIENTISTS HAVE TO BE EXCEPTIONALLY CAREFUL ABOUT PRESERVING CLIENT CONFIDENCES EVEN WHEN THAT MEANS NOT DISCLOSING SECRETS TO OFFICIALS AT SCIENTIFIC DIMENSIONS AT TIMES THEY MAY ALSO HAVE TO KEEP THE SCIENTISTS FROM LEARNING CERTAIN OF SCIENTIFIC DIMENSIONS' BUSINESS PLANS MR GILLERS ADDS THAT THE LAW FIRM MUST BE SCRUPULOUS ABOUT PLACING THE INTERESTS OF ITS CLIENTS AHEAD OF THE LAW FIRM'S OWN FINANCIAL INTEREST IN SCIENTIFIC DIMENSIONS MR GILLERS HOWEVER SAYS DISCLOSURE OF THE RELATIONSHIPS THE RISKS AND THE LAW FIRM'S INTERESTS UP FRONT GO A LONG WAY IN PROTECTING THE LAW FIRM FROM LIABILITY MR GREASON SAYS THE KENYON & KENYON PARTNERSHIP CONSIDERED THE CONFLICTS ISSUE WEIGHED ADVICE FROM LEGAL EXPERTS AND IS COMFORTABLE WITH ITS LINK WITH THE COMPANY BUT ANOTHER LAW FIRM CHADBOURNE & PARKE IN NEW YORK LAST YEAR VOTED TO SELL ITS STOCK IN SCIENTIFIC DIMENSIONS EVEN THOUGH THE OPERATION WAS THE BRAINCHILD OF A CHADBOURNE PARTNER RIGDON H BOYKIN MR BOYKIN REMAINS THE BIGGEST INDIVIDUAL SHAREHOLDER BUT SAYS A MAJORITY OF HIS LAW PARTNERS WERE WORRIED ABOUT THE IMPACT ON THE FIRM'S MALPRACTICE INSURANCE AND IMAGE MR BOYKIN DEVELOPED THE IDEA FOR SCIENTIFIC DIMENSIONS THREE YEARS AGO WHEN CHADBOURNE & PARKE OPENED ITS MOSCOW OFFICE MR BOYKIN WAS PLANNING A SYMPOSIUM IN WHICH RUSSIAN SCIENTISTS WOULD SPEAK WITH US BUSINESS REPRESENTATIVES ABOUT THE MARKET POTENTIAL FOR THEIR TECHNOLOGY MR BOYKIN SAYS THAT WHEN INTEREST SWELLED HE RECONSIDERED AND CANCELED WHAT HE CALLS THE BRAIN FAIR AND CONTACTED LAWYERS HE KNEW AT KENYON & KENYON SAYS MR BOYKIN IT BECAME CLEAR TO ME THAT MAYBE WE WERE GIVING AWAY FOR FREE SCIENTIFIC INFORMATION THAT COULD BE MARKETED JAMES HITCH A PARTNER WITH CHICAGOBASED BAKER & MCKENZIE WHICH HAS 20 LAWYERS OPERATING OUT OF THREE OFFICES IN RUSSIA AGREES THAT SCIENTIFIC DIMENSIONS' APPROACH HAS PROMISE THEORETICALLY CONCEPTUALLY MR HITCH SAYS THERE SHOULDN'T BE ANY PROBLEM IN TAKING THE RESEARCH AND DEVELOPMENT FROM RUSSIA BRINGING IT TO THE US PATENTING IT AND COMMERCIALIZING IT DISABILITYDISCRIMINATION COMPLAINTS ARE ON THE RISE ACCORDING TO THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION A KEY SECTION OF THE AMERICANS WITH DISABILITIES ACT OF 1990 BARRING DISCRIMINATION IN EMPLOYMENT WENT INTO EFFECT LAST JULY GRIEVANCES TOTALED ABOUT 400 A MONTH UNTIL LATE LAST YEAR BUT WERE UP TO ABOUT 1600 A MONTH BY MARCH THE MOST RECENT MONTH FOR WHICH FIGURES ARE AVAILABLE THE MOST COMMON DISABILITY CITED IN DISCRIMINATION CASES WAS A BACK IMPAIRMENT NAMED IN ABOUT 17 OF THE 7000 CASES SINCE JULY FOLLOWED BY MENTAL ILLNESS WHICH WAS NAMED IN ABOUT 9 OF CASES DISCRIMINATION AGAINST PEOPLE CARRYING THE AIDS VIRUS WAS CITED IN ONLY 2 OF COMPLAINTS CHRISTOPHER G BELL FORMERLY A LEGAL COUNSEL AT THE COMMISSION AND NOW A WASHINGTON LABOR LAWYER REPRESENTING MANAGEMENT NOTED THAT A FEDERAL JURY RECENTLY AWARDED A FORMER SECURITYCOMPANY EXECUTIVE 572000 UNDER THE DISABILITIES ACT THAT MIGHT HAVE PIQUED SOME INTEREST HE SAID IN ADDITION HE SAID THE NUMBER OF GRIEVANCES ALWAYS RISES AS MORE PEOPLE HEAR ABOUT A NEW LAW CORPORATE GENERAL COUNSEL AS OPPOSED TO LAWFIRM LAWYERS ARE LEADING THE DRIVE TOWARD INCREASED USE OF ARBITRATION AND MEDIATION A NEW SURVEY BY DELOITTE & TOUCHE SHOWS THE STUDY FOUND A GREATER INTEREST ON THE PART OF GENERAL COUNSEL AND A GREATER EXPERIENCE ON THE PART OF GENERAL COUNSEL THAN LAWYERS IN OUTSIDE FIRMS ACCORDING TO EILEEN SCUDDER THE DELOITTE PARTNER IN CHARGE OF LITIGATION SERVICES IN CHICAGO ONLY 36 OF THE RESPONDENTS WHO WERE CHARACTERIZED AS BEING EXTENSIVE USERS OF LITIGATION ALTERNATIVES THAT IS THEY WERE INVOLVED IN AT LEAST 21 PROCEEDINGS IN A THREEYEAR PERIOD WERE LAWFIRM ATTORNEYS THE REMAINING 64 WERE CORPORATE COUNSEL IN GENERAL THE SURVEY FOUND SWEEPING ACCEPTANCE OF MEDIATION AND ARBITRATION OF THE 246 RESPONDENTS 107 OF WHOM WERE CORPORATE COUNSEL 72 HAD AT LEAST SOME EXPERIENCE WITH LITIGATION ALTERNATIVES AND ALMOST 80 OF THOSE WHO HAD USED THESE PROCEDURES EXPECTED TO INCREASE THEIR RELIANCE ON THEM IN THE FUTURE MANY GENERAL COUNSEL REPORTED THAT THEY INTENDED TO DRAFT CONTRACTS IN THE FUTURE WITH PROVISIONS MANDATING OR ENCOURAGING THE USE OF LITIGATION ALTERNATIVES MEDIATION AND ARBITRATION HAVE BECOME MORE COMMON RECENTLY BECAUSE OF SPIRALLING LEGAL COSTS AND CLOGGED COURT DOCKETS DELOITTE FOUND THAT MEDIATION WAS MORE COMMON THAN ARBITRATION 48 TO 43 SOME RESPONDENTS HAD TRIED OTHER PROCEDURES THAT DON'T FALL INTO THOSE TWO CATEGORIES MORE THAN 65 OF ALL USERS OF LITIGATION ALTERNATIVES SAID THEY HAD SAVED MONEY AS A RESULT USUALLY BETWEEN 11 AND 50 OF THE OVERALL COST OF LITIGATING A CASE ACCORDING TO THE DELOITTE REPORT NOTED JEWEL LAFONTANTMANKARIOUS WHO RECENTLY STEPPED DOWN AS AMBASSADORATLARGE AND COORDINATOR FOR REFUGEE AFFAIRS IN THE STATE DEPARTMENT WILL BECOME A PARTNER AT THE CHICAGOBASED LAW FIRM OF HOLLEB & COFF SHE WILL SPECIALIZE IN LABOR LAW GOVERNMENT RELATIONS AND INTERNATIONAL LAW HOLLEB & COFF WITH 115 LAWYERS HAS BEEN GROWING RAPIDLY IN RECENT YEARS ACCORDING TO PARTNER JEROME WEXLER HE ATTRIBUTES THE ABOUT 8 A YEAR INCREASE IN THE NUMBER OF LAWYERS TO SOMEWHAT LOWER BILLING RATES THAN COMPETITORS AND GROWTH IN THE FIRM'S FINANCIALINSTITUTIONS AND ENVIRONMENTAL PRACTICES JUNDA WOO AND ELLEN JOAN POLLOCK CONTRIBUTED TO THIS ARTICLE 9305060037 930506 IF E'ER HE ACHIEVES HIS NOBLE AIM RECORD BOOKS WILL NOTE HIS NAME BY MILTON G ALLIMADI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOME POETS SEARCH FOR THEIR MUSE JORDAN DAVIS CAN'T GET HIS MUSE OFF HIS BACK HE PLANS TO WRITE A MILLION POEMS AND ONLY HAS ABOUT 998000 TO GO AT THIS RATE I'LL HAVE TO WRITE ABOUT 32 POEMS A DAY AND HOPE TO LIVE TILL I'M 100 SAYS THE 22YEAROLD MR DAVIS A RESEARCH ASSISTANT AT COLUMBIA UNIVERSITY AND EDITOR OF A POETRY NEWSLETTER MR DAVIS'S PROJECT STARTED TWO YEARS AGO WHEN A CHARACTER HOLDING A BRIEFCASE APPEARED IN A DREAM AND TOLD HIM TO WRITE 1000 POEMS ONE WAS TO BE 1000 LINES LONG IN A LATER CAMEO APPEARANCE THE CHARACTER ORDERED HIM TO MULTIPLY THE 1000 POEMS 1000 TIMES SO MR DAVIS BEGAN CRANKING OUT OVER 30 POEMS A DAY HE COMPLETED THE 1000LINE POEM AND CALLED IT THE PROJECT AFTER HARLEM HOUSING PROJECTS NEAR COLUMBIA HE PROBABLY COULD HAVE SHRUGGED OFF THE MILLIONPOEM TASK IF HE HADN'T MENTIONED THE DREAM TO A TALKATIVE FRIEND THESE DAYS MR DAVIS HOLDS PUBLIC READINGS BILLED AS THE AUTHOR OF A MILLION POEMS I'M STUCK WITH IT NOW HE SAYS ADDING I KNOW IT ALL SOUNDS CRAZY EMILY DICKINSON DIDN'T WRITE MORE THAN TWO POEMS A DAY DANTE HAD THE AMBITION TO WRITE 100 POEMS THE DIVINE COMEDY' THE POETIC LIMIT HASN'T GONE MUCH FURTHER THAN THAT I'D LIKE TO CHANGE THAT NOT ALL OF MR DAVIS'S POEMS ARE 1000 LINES LONG THE PARK FOR EXAMPLE READS IN ITS ENTIRETY ENERGETICALLY THE STRAIGHT LINE OF THE DAY BRINGS FOOT AFTER FOOT OF THIS NARROW PUBLIC LAND ANOTHER SHORT WORK BAD POEM READS PUT THAT ROCK DOWN MR DAVIS REMEMBERS HIS EARLIEST POEM WHEN HE WAS ABOUT 10 CALLED LOVE IS LIKE BASEBALL HE EXPLAINS WHEN YOU'RE YOUNG YOU HAVE A CRUSH ON SOMEONE I THINK I GOT THE TWO MIXED UP EVEN THOUGH HE IS A BIT SHORT OF HIS TARGET SO FAR THE GOAL ITSELF IMPRESSES COLLEAGUES I WRITE ABOUT FIVE OR SIX POEMS A YEAR MOANED 53YEAROLD STEVE MALMUDE AFTER A RECENT READING BY MR DAVIS MR DAVIS'S ENGLISH PROFESSOR AT COLUMBIA KENNETH KOCH IS ROOTING FOR HIS FORMER PUPIL WHOM HE DESCRIBES AS BRILLIANT BUT MR KOCH IS MORE INTERESTED IN THE VERSES THAN IN VOLUME I MIGHT DOUBT THE PHYSICAL POSSIBILITY OF WRITING A MILLION HE SAYS BUT I HAVE NO DOUBT MR DAVIS WILL WRITE A LOT OF GOOD THINGS 9305060036 930506 REVIEW & OUTLOOK EDITORIAL BEYOND BOSNIA AS THE ADMINISTRATION PONDERS THE USE OF AMERICAN SOLDIERS IN BOSNIA IT'S AN APPROPRIATE MOMENT TO PONDER JUST WHAT OUR OPTIONS ARE OR OUGHT TO BE IN FARAWAY PLACES LIKE THIS IN THE CASE OF BOSNIA HOW HAS IT COME TO PASS THAT THE ONLY POLICY CHOICES PLACED BEFORE US ARE EQUALLY STARK APPLY FORCE OR STAND BACK AND DO NOTHING SURELY THE US HAS OTHER MEANS TO HELP CREATE FAVORABLE OUTCOMES WAITING UNTIL IT IS TOO LATE IS A BAD OPTION AS WE HAVE ARGUED BEFORE IN THE WANING YEARS OF THE COLD WAR AND AT THE TIME OF OUR HALFVICTORY IN THE GULF WAR THE US NEEDS TO FIND AN EFFECTIVE MECHANISM TO EXERT ITS INFLUENCE ABROAD AS THE WORLD'S NEWLY FREED PEOPLES STRUGGLE AND DIE OVER THEIR LOST NATIONAL IDENTITIES THE US NEEDS TO DEVELOP A MODERN ALTERNATIVE TO LORD KITCHENER'S COLONIALISM WHICH IS WHAT THE NATOENFORCED OWENVANCE EXERTIONS IN BOSNIA RESEMBLE WHY NOT INSTEAD OF FREEFALLING INTO THIS HORRIBLE IMPASSE MAKE USE OF TWO GREAT US RESOURCES OUR EXPERTISE IN TELECOMMUNICATIONS AND OUR POSITION AS THE PREEMINENT MODEL FOR THE WORLD'S STRUGGLING DEMOCRATS IN THE CASE OF EXYUGOSLAVIA WE RECEIVED A VISIT THE OTHER DAY FROM MILAN PANIC THE SERBIABORN CALIFORNIAGROWN BUSINESSMAN WHO FOR SOME MONTHS LAST YEAR WAS PRIME MINISTER OF WHAT WAS LEFT OF YUGOSLAVIA IN DECEMBER HE RAN FOR PRESIDENT OF SERBIA LOSING TO SLOBODAN MILOSEVIC AS BEFITS AN ENTREPRENEUR MR PANIC'S THINKING IS WELL AHEAD OF THE FOREIGNPOLICY BUREAUCRACY'S MODELT FORMULAS FIRST HE SAYS MAKE SURE THE SERBS KNOW WHAT IS HAPPENING IN THEIR OWN COUNTRY GIVE THEM FACTS INCREDIBLE AS IT MIGHT SEEM TO THOSE OF US WHO ARE BOMBARDED DAILY WITH HORRIFIC IMAGES OF THE SAVAGERY IN BOSNIA FEW SERBS ARE AWARE OF WHAT IS GOING ON THERE MILOSEVIC'S CONTROL OF THE LOCAL MEDIA PLUS THE WEST'S ECONOMIC EMBARGO MEAN THAT ACCURATE INFORMATION DOESN'T REACH BELGRADE WORSE THE EMBARGO AND MILOSEVIC'S TELEVISED PROPAGANDA CONSPIRE TO MAKE THE SERB POPULATION FEEL ISOLATED FROM THE WORLD COMMUNITY A SIEGE MENTALITY HAS SET INTO BELGRADE MR PANIC WARNS EVEN CIVILIZED PEOPLE START CREDITING THE PROPAGANDA THE US COULD COUNTER THIS AT MINUSCULE COST WITH TELECOMMUNICATIONS LET RADIO FREE EUROPE BROADCAST TO THE EXYUGOSLAVIA ONLY YUGOSLAVIA WAS DENIED ACCESS DURING THE COLD WAR TO THE FREEDOM RADIOS RFE AND RADIO LIBERTY THINK IT WOULDN'T MATTER ASK LECH WALESA POLAND'S MR WALESA HAD SAID PERHAPS IF RADIO FREE EUROPE HAD BROADCAST ALL THESE YEARS TO YUGOSLAVIA WE WOULD NOT HAVE BLOODSHED THERE TODAY THINGS WOULD HAVE BEEN DIFFERENT RFE WANTS TO START BROADCASTS IN SERBOCROATIAN BUT HASN'T BEEN ABLE TO GET THE GOAHEAD FROM EITHER THE BUSH OR CLINTON ADMINISTRATIONS EVEN THOUGH THE DROPINTHEBUCKET 15 MILLION STARTUP COST WOULD COME FROM RFE'S EXISTING BUDGET RFE/RL PRESIDENT GENE PELL SAYS HE COULD MOUNT A SERVICE IN 90 DAYS STAFFED BY YUGOSLAV JOURNALISTS IT'S A MATTER OF FLIPPING A SWITCH AND PUTTING A SERBOCROATION ON THE MICROPHONE WHILE VOICE OF AMERICA HAS JUST INCREASED ITS SERVICE IN SERBIAN CROATIAN AND ALBANIAN TO 28 HOURS A WEEK ONLY ABOUT 35 OF ITS COVERAGE IS DEVOTED TO LOCAL EVENTS THE SERBS DON'T NEED TO KNOW ABOUT THE RODNEY KING TRIAL OR THE LATEST USJAPAN TRADE DISPUTE THE STANDARD FARE OF VOA ONE REASON RFE AND RL HAVE BEEN SO EFFECTIVE IS THAT THEIR BROADCASTS TYPICALLY CONTAIN 80 LOCAL NEWS MR PANIC'S SECOND RECOMMENDATION IS FOR THE US TO IDENTIFY AND SUPPORT SERBIAN DEMOCRATS THEY DO EXIST WITH THE BACKING OF THE US GOVERNMENT SERBIA'S DEMOCRATS WOULD GAIN THE MORAL AUTHORITY THAT WOULD HELP SWELL THEIR NUMBERS AND MIGHT MAKE STRONGMEN SUCH AS MILOSEVIC THINK TWICE BEFORE GOING AFTER THEM AGAIN IT'S WORKED BEFORE THE WEST USED THIS STRATEGY EFFECTIVELY WITH DEMOCRATS SUCH AS ANDREI SAKHAROV AND NATAN SHARANSKY IN THE SOVIET UNION AND FANG LIZHI IN CHINA ASK THE YOUNG DEMOCRATS AROUND BORIS YELTSIN HOW MUCH IT MEANT TO THEM AND GIVE CREDIT TO PRESIDENT CLINTON FOR MEETING WITH THE DALAI LAMA OVER BEIJING'S OBJECTIONS OF COURSE THE PANIC PROPOSALS SHOULD HAVE BEEN UP AND RUNNING TWO YEARS AGO BUT BEYOND BOSNIA THERE ARE 40SOME CONFLICTS RAGING IN THE WORLD THESE DAYS FROM THE OBSCURE TRIBAL WAR IN RWANDA TO THE MUSLIMCHRISTIAN FIGHTING IN ARMENIA AND AZERBAIJAN WE ARE STUCK AT THE DAWN OF A POSTCOLD WAR FOREIGN POLICY MISSILES STILL MATTER BUT TRANSISTORS ARE CHEAPER WE MAY INDEED WANT TO ARM SOME PEOPLE BUT WE SHOULD ALSO ARM THEM WITH FACTS AGAINST THE WARLORDS' DEMAGOGUERY THE CAVALRY MAY BE ARRIVING TOO LATE TO DO MUCH GOOD IN BOSNIA BUT THERE IS AMPLE OPPORTUNITY TO THINK AND ACT MORE CONSTRUCTIVELY ELSEWHERE 9305060035 930506 LETTERS TO THE EDITOR KINSEY HAS NO CLOTHES THE APRIL 26 LETTER WRITERS OBJECTING TO J GORDON MUIR'S MARCH 31 EDITORIAL PAGE ESSAY HOMOSEXUALS AND THE 10 FALLACY ASKED WHAT WAS THE POINT OF MR MUIR'S STUDY SHOWING THAT ONLY ABOUT 1 OF AMERICAN MEN ARE HOMOSEXUAL AND IMPLIED THAT THE STUDY WOULD ONLY INCREASE HOMOPHOBIA IN FACT THERE ARE GOOD REASONS FOR MR MUIR'S STUDY THE CONCLUSION THAT THE PREVALENCE OF EXCLUSIVE MALE HOMOSEXUALITY IS IN THE 1 AREA IS NOT SOMETHING THAT SHOULD SURPRISE ANYONE THE 10 FIGURE HAS BEEN KNOWN TO BE INCORRECT FOR MANY YEARS BY THOSE FAMILIAR WITH RESEARCH IN OTHER COUNTRIES AND THE BIASES THAT ALFRED KINSEY'S RESEARCH TEAM KNOWINGLY BUILT INTO THEIR ORIGINAL 1940S MALE SURVEY FROM WHICH THIS FIGURE COMES THE GREATER SERVICE IN EXPOSING THE 10 FALLACY AN ERROR FURTHER CONFIRMED BY ADDITIONAL US RESEARCH RELEASED FROM THE ALAN GUTTMACHER INSTITUTE LAST WEEK IS IN GETTING THIS INFORMATION FINALLY TO A WIDER PUBLIC THAT HAS BEEN KEPT IN THE DARK ABOUT THIS IMPORTANT FACT OF LIFE LARGELY BECAUSE IT RAN COUNTER TO POLITICALLY CORRECT WISDOM AND THE AGENDA OF A POWERFUL INTEREST GROUP AS A COAUTHOR OF KINSEY SEX AND FRAUD COPUBLISHED BY MR MUIR AND HUNTINGTON HOUSE 1990 I AND OTHERS HAVE BEEN SERIOUSLY HAMPERED IN DISCUSSING THIS ISSUE BY THE USE OF FALSE AND STEREOTYPICAL LABELS SUCH AS RIGHT WINGER FUNDAMENTALIST ANTI SEX AND OF COURSE THE OBLIGATORY CHARACTERIZATION OF HOMOPHOBE WHAT I AM IS A REGISTERED DEMOCRAT A NONPRACTICING JEW AND A SEX RESEARCHER WHOSE INNOVATIVE WORK ON MALEFEMALE COMPATIBILITY HAS BEEN IN A RECENT BOOK WITH THE 10 ISSUE RESOLVED ONE HOPES IT MAY BE EASIER NOW TO MOVE ON AND DEAL WITH OTHER SERIOUS MISUNDERSTANDINGS ABOUT HUMAN SEXUALITY THAT ALSO EMANATE FROM KINSEY'S WORK JUST AS THE KINSEY 10 FIGURE WAS NO ACCIDENT HIS BIBLIOGRAPHER GERSHON LEGMAN POINTED OUT 25 YEARS AGO THAT ONE OF HIS PROPAGANDISTIC PURPOSES WAS TO VALIDATE HOMOSEXUALITY AS NORMAL BEHAVIOR NEITHER WERE HIS EVEN MORE IMPORTANT CONCLUSIONS ON CHILDHOOD SEXUALITY WITHOUT ANY CREDIBLE EVIDENCE UNLESS WE ARE PREPARED TO ACCEPT AS SCIENCE THE ACTIVITY OF PEDOPHILES ILLEGALLY PERFORMING ABUSIVE ORGASM EXPERIMENTS ON INFANTS AND YOUNG CHILDREN KINSEY AND HIS TEAM CONCLUDED THAT HUMANS ARE SEXUAL AND HAVE SEXUAL NEEDS FROM BIRTH KINSEY'S HOMOSEXUALITY DATA SUPPORTED HIS VIEW OF A SEXUAL CONTINUUM FROM HETEROSEXUAL TO HOMOSEXUAL HIS CHILD ORGASM DATA SUPPORT HIS SECOND POSTULATED SEXUAL CONTINUUM FROM BIRTH TO DEATH THIS IS BELIEVED AND TAUGHT AS SCIENTIFIC FACT IN ACADEMIA TODAY CREATING AN AWARENESS OF CHILDHOOD SEXUAL POTENTIAL HAS BEEN A STATED GOAL OF THE HIGHLY INFLUENTIAL SEX INFORMATION AND EDUCATION COUNCIL OF THE UNITED STATES SIECUS WHICH IN EFFECT IS ONE OF THE MECHANISMS FOR APPLYING KINSEY'S IDEOLOGY INTO SEX EDUCATION PROGRAMS SIECUS HAS ANNOUNCED IT IS RECEIVING GRANTS FROM THE CENTERS FOR DISEASE CONTROL TO DEVELOP NATIONAL HIV INFORMATION AND EDUCATION INITIATIVES MR MUIR QUOTED SIECUS COFOUNDER LESTER KIRKENDALL REFERRING TO THE FUTURE LEGITIMACY OF EVEN ADULTCHILD SEX THAT MAY STILL BE SOME WAY OFF BUT THE AVANT GARDE OF SEX EDUCATION IS LOOKING DOWN THAT ROAD FOR THOSE WHO HAVE WONDERED WHY SEX EDUCATION ELITES ARE POSITIVELY ENTHUSIASTIC ABOUT SCHOOL CONDOM DISTRIBUTION AND OTHER PROGRAMS THAT EVERYONE KNOWS ENCOURAGE EARLY SEXUAL ACTIVITY THE ANSWER IS IT HELPS TO ADVANCE THEIR KINSEYAN VIEW OF WHAT CONSTITUTES NORMAL HUMAN SEXUAL BEHAVIOR FOR THE MOST PART HOWEVER THESE IDEOLOGICAL INNOVATIONS ARE FLOATED WITHIN THE CONTEXT OF CONCERNS ABOUT THE SPREAD OF THE HIV VIRUS IN A 1989 NATIONAL RESEARCH COUNCIL REPORT SUPPOSEDLY RELEVANT TO AIDS PREVENTION SEX RESEARCH EXPERTS JOHN GAGNON CHARLES TURNER AND OTHERS INFORMED US THAT DESCRIPTIONS OF THE CULTURAL LIFE OF HOMOSEXUAL' GROUPS IN PAPUA NEW GUINEA CHALLENGE WESTERNERS TO REEVALUATE STANDARD GENERALIZATIONS ABOUT ADOLESCENCE AND SEXUAL DEVELOPMENT ONE OF THEIR CHALLENGING EXAMPLES IS A TRIBE WHERE YOUNG BOYS ARE INITIATED INTO HOMOSEXUAL PRACTICES BEGINNING AT AGES SEVEN TO 10 EDUCATOR JAMES RAMEY EXPRESSED THE VISION MORE GRAPHICALLY IN A 1979 SIECUS REPORT WE ARE IN ROUGHLY THE SAME POSITION TODAY REGARDING INCEST AS WE WERE A HUNDRED YEARS AGO WITH RESPECT TO OUR FEAR OF MASTURBATION YES THE KINSEY AGENDA GOES WAY BEYOND THE NUMBERS OF HOMOSEXUAL MEN AND THE SCIENTIFIC DATA SUPPORTING ITS OTHER COMPONENTS ARE EQUALLY PHONY BUT THE PHILOSOPHY IS ENTRENCHED AT THE HIGHEST LEVELS WRITING IN THE OCTOBER 1991 CONTEMPORARY SEXUALITY A MONTHLY NEWSLETTER OF THE AMERICAN ASSOCIATION OF SEX EDUCATORS COUNSELORS AND THERAPISTS ASSOCIATION PASTPRESIDENT CAROL CASSELL SAID LOOK HOW WE'VE USED THE KINSEY DATA WE'VE USED IT FOR ASSESSING THE STABILITY OF MARRIAGE TO RAISING CHILDREN TO TRYING TO UNDERSTAND HUMAN GROWTH AND DEVELOPMENT NOT JUST SEXUAL BUT ALSO PSYCHOLOGICAL GROWTH AND CHANGES OVER TIME WE ARE DEALING HERE WITH THE CONSEQUENCES OF PHONY SCIENCE THE REAL TASK WILL INVOLVE AN INVESTIGATION OF THE FULL NATURE OF KINSEY'S ERRORS SO THAT THE PUBLIC CAN BE SHOWN THE SCOPE OF THIS IDEOLOGICAL CON 9305060034 930506 ECONOMY HOME PRICES ROSE 51 IN FIRST QUARTER BUT CALIFORNIA NORTHEAST REMAIN WEAK BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL HOME PRICES ROSE 51 DURING THE FIRST QUARTER IN METROPOLITAN AREAS NATIONWIDE ON THE STRENGTH OF POWERFUL HOUSING DEMAND IN THE MIDWEST AND PARTS OF THE SOUTH AND WEST PRICES CONTINUED TO ERODE IN STILLWEAK CALIFORNIA AND THE NORTHEAST ALTHOUGH LOW INTEREST RATES INDUCED A RESURGENCE IN BUYING DEMAND THERE FOR MOSTLY INEXPENSIVE STARTER HOMES THE COASTAL MARKETS RETAIN A GLUT OF UNSOLD TRADEUP HOMES HOWEVER THAT PREVENTS VALUES FROM REBOUNDING APPRECIABLY ANYTIME SOON IN THE 129 LARGEST METROPOLITAN AREAS NATIONWIDE MEDIAN PRICES INCREASED TO 104200 FROM 99100 A YEAR AGO AT A RATE ABOUT TWO PERCENTAGE POINTS HIGHER THAN INFLATION ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS IT IS ALSO THE HIGHEST RATE OF QUARTERLY INCREASE IN TWO YEARS REALTORS ATTRIBUTE THE REBOUND IN VALUES TO A RESURGENCE IN DEMAND FUELED BY RESTORED CONSUMER CONFIDENCE THE LOWEST INTEREST RATES IN 20 YEARS AND VAST RESERVES OF AFFORDABLE HOUSING IN THE NATION'S LOWERCOST MARKETS THE MARKET IS BEING DRIVEN BY FIRSTTIME BUYERS WHO SPUR TRADEUP ACTIVITY BY BUYING UP UNSOLD HOMES INDEED THE REALTORS REPORT THAT SALES OF ALL EXISTING HOMES ROSE 34 IN THE QUARTER TO A SEASONALLY ADJUSTED ANNUALIZED RATE OF 39 MILLION FROM AN ANNUALIZED RATE OF 38 MILLION A YEAR AGO BAD WEATHER HELPED DEPRESS SALES FROM THE FOURTH QUARTER'S EXTRAORDINARILY ROBUST RATE OF 42 MILLION ANNUALIZED RESALES WHICH IN TURN WERE BOOSTED BY UNUSUALLY GOOD WEATHER IN THE CURRENT QUARTER SALES ARE REPORTED RUNNING VERY STRONG THROUGH MUCH OF THE NATION I THINK THE MARKET IS FUNDAMENTALLY SOUND LACKING ONLY A STRONG ECONOMY SAID JOHN A TUCCILLO CHIEF ECONOMIST FOR THE WASHINGTON DCBASED TRADE GROUP THE HEALTH OF INDIVIDUAL HOUSING MARKETS CAN VARY WIDELY WITHIN REGIONS AND EVEN METROPOLITAN AREAS IN CALIFORNIA FOR EXAMPLE LOS ANGELES COUNTY RESALES DIVED 97 IN THE FIRST QUARTER FROM A YEAR EARLIER WHILE SALES IN ADJOINING VENTURA COUNTY SOARED 128 ACCORDING TO THE CALIFORNIA ASSOCIATION OF REALTORS RESALES IN SANTA CLARA COUNTY SAN JOSE PLUNGED 253 IN THE QUARTER FROM A YEAR EARLIER VS A STATEWIDE DROP OF 63 AND IN WASHINGTON DC EXISTING HOME SALES IN THE QUARTER FELL 10 FROM A YEAR EARLIER WHILE SALES WERE STRONGER IN SOME SUBURBS IN THE RICHLAND AND KENNEWICK WASH METROPOLITAN AREA THE MEDIAN PRICE OF A SINGLEFAMILY HOME ROCKETED 245 TO 96400 FROM 77400 A YEAR AGO PRICES IN DETROIT SPOKANE WASH MADISON WIS AND CEDAR RAPIDS IOWA ALSO JUMPED MORE THAN 9 THE MIDWEST POSTED THE STRONGEST RATE OF INCREASE WITH MEDIAN PRICES JUMPING 78 DURING THE PERIOD THE MIDWEST HAS A GOOD COMBINATION OF ECONOMIC STABILITY AND LOWCOST HOUSING MR TUCCILLO SAID THE SOUTH ANOTHER REGION WITH A LARGE SUPPLY OF AFFORDABLE HOUSING ALSO EXPERIENCED HEALTHY DEMAND AS MEDIAN PRICES ROSE 27 OVERALL AND AS MUCH AS 102 IN FORT MYERSCAPE CORAL FLA AND 74 IN BILOXIGULFPORT MISS IN THE NORTHEAST MEDIAN PRICES WERE FLAT OVERALL AND DECLINED MORE THAN 7 IN MARKETS LIKE PHILADELPHIA SPRINGFIELD MASS AND ATLANTIC CITY NJ MR TUCCILLO SAID SALES WERE UP 86 IN THE NORTHEAST DURING THE QUARTER BUT THAT MEDIAN PRICES WERE PULLED DOWN BECAUSE MAINLY LOWERPRICED HOMES WERE BOUGHT A MEDIAN PRICE IS THE MIDPOINT HALF THE HOMES SELL FOR MORE AND HALF SELL FOR LESS HOME PRICES IN THE WEST SLIPPED 05 IN THE PERIOD MOSTLY DUE TO CONTINUED DETERIORATION IN CALIFORNIA ALTHOUGH DEMAND FOR STARTER HOMES REVIVED IN THE GOLDEN STATE PRICES SLIPPED 8 IN THE LOS ANGELESLONG BEACH MARKET AND DECLINES WERE REPORTED FOR SAN DIEGO SACRAMENTO AND RIVERSIDESAN BERNARDINO SOUTHERN CALIFORNIA HAS BEEN HIT BY CUTBACKS IN THE DEFENSE BUDGET SAID ROBERT VAN ORDER CHIEF ECONOMIST FOR THE FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC IT ALSO MAY WELL BE THAT HOUSING PRICES THERE OVERSHOT IN THE BOOM A FEW YEARS AGO ELSEWHERE IN THE WEST SOME MARKETS ARE BOOMING MEDIAN PRICES SURGED MORE THAN 8 IN PLACES LIKE ALBUQUERQUE NM BOISE IDAHO AND SPOKANE WASH WHERE JOB GROWTH IS VIGOROUS AND HOMES ARE STILL AFFORDABLY PRICED 9305060033 930506 KODAK'S CHIEF GAINS SUPPORT FROM 2 HOLDERS WHITMORE ASSURES CALPERS HE WILL MAKE CHANGES TO BOOST PROFITABILITY BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL JUST DAYS AFTER ANGRY INVESTORS CALLED FOR HIS RESIGNATION EASTMAN KODAK CO CHAIRMAN AND CHIEF EXECUTIVE OFFICER KAY R WHITMORE WON TENUOUS VOTES OF CONFIDENCE FROM TWO KEY SHAREHOLDERS DURING A 90MINUTE MEETING WITH THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM AT KODAK'S NEW YORK OFFICES YESTERDAY MR WHITMORE CONVINCED THE ACTIVIST SHAREHOLDER THAT HE IS COMMITTED TO CHANGING KODAK TO MAKE IT MORE PROFITABLE THOUGH HE DIDN'T ELABORATE ON HOW SAID RICHARD KOPPES CALPERS GENERAL COUNSEL THE FUND OWNS ABOUT TWO MILLION KODAK SHARES A KODAK SPOKESMAN DECLINED TO COMMENT MR WHITMORE HAS BEEN UNDER FIRE FROM INVESTORS SINCE LAST WEEK'S ABRUPT DEPARTURE OF HIS FINANCE CHIEF CHRISTOPHER J STEFFEN I THINK HE HAS CERTAINLY LEARNED A LOT IN THE LAST WEEK OR SO HE ADMITTED THAT TO US MR KOPPES SAID OF MR WHITMORE MR WHITMORE AGREED TO LET CALPERS MAINTAIN CLOSE AND ACTIVE MONITORING OF KODAK'S PROGRESS INCLUDING REGULAR DIALOGUE WITH THE ROCHESTER NY PHOTOGRAPHY COMPANY'S DIRECTORS MR KOPPES SAID CALPERS WHICH HAD DELAYED VOTING ITS PROXIES UNTIL YESTERDAY'S MEETING SAID IT WILL NOW VOTE FOR THE MANAGEMENT SLATE OF DIRECTORS I WOULD AGREE WITH THE BOARD THAT MR WHITMORE NEEDS TO BE GIVEN A CHANCE MR KOPPES SAID CALPERS SAID IT IS STILL CONSIDERING PUTTING KODAK ON A LIST OF TARGET COMPANIES WHERE IT WILL TRY TO FORCE CHANGE MR WHITMORE WHO HAS PROMISED TO DELIVER A TURNAROUND PLAN FOR KODAK BY SEPTEMBER AT THE LATEST SAID THAT I HOPE OUR PLAN KEEPS US OFF THAT LIST MR KOPPES SAID SEPARATELY ONE OF KODAK'S TOP 10 SHAREHOLDERS THE REGENTS OF THE UNIVERSITY OF CALIFORNIA SAID ALTHOUGH THEY ARE VERY CONCERNED ABOUT SLUGGISH PERFORMANCE AT KODAK THEY ARE WILLING TO LET MR WHITMORE PROCEED WITH HIS PLAN WE WILL WAIT FOR THIS SEPTEMBER PROGRAM BEFORE PASSING FURTHER JUDGMENT ON THE COMPANY SAID THE ASSOCIATE TREASURER PATRICIA SMALL THE REGENTS OWN ABOUT 47 MILLION KODAK SHARES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY KODAK FELL 25 CENTS TO 4975 9305060032 930506 LORAL LOSES RULING IN PATENT SUIT OVER LIGHTSENSING PARTS NEW YORK LORAL CORP LOST AN IMPORTANT RULING RELATED TO ITS HUGE PATENT INFRINGEMENT SUIT OVER LIGHTSENSING PARTS USED IN VIDEO CAMERAS FACSIMILE MACHINES AND OTHER PRODUCTS US DISTRICT JUDGE JOHN S MARTIN MANHATTAN LAST WEEK RULED THAT MATSUSHITA ELECTRONICS CORP A JOINT VENTURE OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CORP AND PHILIPS ELECTRONICS NV HAD ACCESS TO THE PATENT THROUGH A TECHNOLOGY LICENSING ARRANGEMENT WITH A COMPANY RELATED TO LORAL MATSUSHITA ANNOUNCED THIS WEEK IT WILL BUY OUT PHILIPS'S OWNERSHIP IN THE VENTURE THE RULING WHICH LORAL SAYS IT WILL APPEAL MAY EFFECT LORAL'S SEPARATE PATENT LAWSUIT PENDING IN FEDERAL COURT IN BROOKLYN LORAL THROUGH ITS LORAL FAIRCHILD SUBSIDIARY IS SUING ABOUT 15 JAPANESE AND KOREAN COMPANIES FOR INFRINGING ON THE PATENT LORAL HAS SAID THAT 5 BILLION WORTH OF EQUIPMENT WAS SOLD BY FIRMS ILLEGALLY USING TECHNOLOGY ON WHICH IT HAS A PATENT AND THAT IT COULD WIN SEVERAL HUNDRED MILLION DOLLARS IN DAMAGES BUT IF MEC ALSO HAD A LICENSE TO THE PATENT THAT FINDING COULD LOWER ANY DAMAGE AWARD IF THERE WERE TWO SOURCES OF THE EQUIPMENT JUDGE MARTIN'S RULING WOULD ALSO BE A DEFENSE TO LORAL'S CLAIMS IN THE BROOKLYN LAWSUIT THAT MATSUSHITA INFRINGED ON THE PATENT ALTHOUGH THE JAPANESE CONCERN ALSO COULD BE FOUND LIABLE FOR USING LIGHTSENSING MADE BY OTHER NONLICENSED COMPANIES IN ITS EQUIPMENT MEANWHILE A LAWYER FOR LORAL SAID THAT NATIONAL SEMICONDUCTOR CORP RECENTLY FILED A LAWSUIT IN STATE COURT IN CALIFORNIA CHALLENGING WHETHER LORAL EVEN OWNS THE PATENTS AT ISSUE BOTH COMPANIES OWN PIECES OF THE FORMER FAIRCHILD CAMERA WHICH DEVELOPED THE TECHNOLOGY COVERED BY THE PATENT LORAL IN TURN ADDED NATIONAL SEMICONDUCTOR AS A DEFENDANT IN THE LAWSUIT IN BROOKLYN THE OTHER DEFENDANTS A BROAD RANGE OF ELECTRONICS COMPANIES INCLUDE ENTITIES RELATED TO NIPPON ELECTRIC CO NEC CORP SONY CORP FUJI PHOTO FILM CO AND CANON INC ALL OF TOKYO OTHER DEFENDANTS ARE TOSHIBA CORP AND HITACHI LTD ALSO BOTH OF TOKYO SANYO ELECTRONIC CO AND SHARP CORP BOTH OF OSAKA AND GOLDSTAR CO AND SAMSUNG CO BOTH OF SEOUL SOUTH KOREA 9305060031 930506 DEFENSEMONEY BILL IS BACKED BY PANEL WITH EYE ON BOSNIA BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HOUSE APPROPRIATIONS PANEL APPROVED A 12 BILLION SUPPLEMENTAL MILITARYSPENDING BILL THAT DEFIES THE CLINTON ADMINISTRATION'S DEMANDS FOR OFFSETTING SAVINGS FROM THE CURRENT PENTAGON BUDGET THE MEASURE WHICH INCLUDES 750 MILLION TO COVER THE COST OF US FORCES IN SOMALIA REFLECTS AN UNDERLYING CONCERN AMONG PRODEFENSE LAWMAKERS THAT ANY NEW COMMITMENT TO BOSNIA WILL EXHAUST THE REMAINING RESOURCES AVAILABLE TO THE PENTAGON MORE BROADLY THE ACTION SHOWS INCREASED FRUSTRATION WITHIN THE APPROPRIATIONS LEADERSHIP WHICH COMPLAINS THAT THE WHITE HOUSE HAS FAILED TO SPECIFY THE ESTIMATED 68 BILLION IN SPENDING CUTS STILL NEEDED TO BRING THE PRESIDENT'S BUDGET UNDER THE SPENDING RESOLUTION ADOPTED FOR THE FISCAL YEAR BEGINNING OCT 1 MOST OF THIS DISCREPANCY CAN BE EXPLAINED BY MR CLINTON'S AMBITIOUS INVESTMENT INITIATIVES WHICH ARE EXPECTED TO ADD AS MUCH AS 63 BILLION IN DIRECT SPENDING NEXT YEAR BY SUCH DEPARTMENTS AS COMMERCE LABOR AND HEALTH AND HUMAN SERVICES THOUGH MANY OF THE PROPOSALS ARE POPULAR AMONG DEMOCRATIC LAWMAKERS TO FIND FUNDING NOW WILL REQUIRE THE APPROPRIATIONS LEADERSHIP TO CUT INTO EXISTING PROGRAMS AS WELL AS PAROCHIAL PROJECTS FAVORED BY HOMESTATE INTERESTS THE EXERCISE IS PARTICULARLY DIFFICULT FOR THE NEW HOUSE APPROPRIATIONS CHAIRMAN WILLIAM NATCHER WHO TAKES PRIDE IN HIS OWN LEGISLATIVE PROVINCE INCLUDING THE SAME LABOR EDUCATION AND HEALTH PROGRAMS THAT FIGURE SO PROMINENTLY IN THE PRESIDENT'S PLAN CUTTING BACK ON THESE INITIATIVES WOULD BE AWKWARD FOR THE ELDERLY KENTUCKIAN REP NATCHER WHO DECLINED TO COMMENT IS DESCRIBED AS FRUSTRATED WITH THE ADMINISTRATION'S RESPONSE SO FAR WITH HIS REQUEST FOR CUTS IN AN EFFORT TO SET PRIORITIES THE WHITE HOUSE HAS PROVIDED A LIST TO HELP LAWMAKERS SCALE BACK AT LEAST THE IMMEDIATE COST OF THE PRESIDENT'S INITIATIVES THOUGH OFFICIALS INSISTED LAST NIGHT THAT BUDGET DIRECTOR LEON PANETTA HAS OFFERED TO COME FORWARD WITH SPECIFIC CUTS CLEARLY THIS MESSAGE HAS FAILED TO GET THROUGH TO HIS FORMER HOUSE COLLEAGUES INCLUDING SUCH PAST ALLIES AS REP DAVID OBEY A SENIOR MEMBER OF THE APPROPRIATIONS COMMITTEE WE FEEL LIKE INFANTRY SOLDIERS UP HERE DOING THE FIGHTING WITHOUT GUIDANCE COMPLAINED THE WISCONSIN DEMOCRAT THOUGH THE CHOICES ARE MOST POLITICALLY PAINFUL WITHIN DOMESTIC ACCOUNTS THE FIGHT IS SURE TO SPILL OVER INTO DEFENSE WHEN THE APPROPRIATIONS LEADERSHIP DIVIDES ITS ALLOTTED SPENDING AMONG THE 13 SUBCOMMITTEE JURISDICTIONS THIS MONTH MINDFUL OF THIS PENTAGON ALLIES ARE DETERMINED NOT TO GIVE UP ANY SPENDING THAT HAS ALREADY BEEN ALLOCATED FOR EXAMPLE THOUGH THE ADMINISTRATION HAD PROPOSED CUTTING FROM EXISTING FUNDS TO FINANCE THE SOMALIA MISSION THE BILL BACKED YESTERDAY WOULD SIMPLY ADD TO THE BUDGET FOR THE FISCAL YEAR ENDING SEPT 30 APART FROM THE RELIEF MISSION IN AFRICA AN ESTIMATED 100 MILLION IS INCLUDED TO COVER THE COSTS OF ENFORCING OVERFLIGHTS TO CONTAIN IRAQ AND ABOUT 270 MILLION WOULD GO TO COVER EXPENSES FOR THE MILITARY MEDICAL PROGRAM REP JOHN MURTHA CHAIRMAN OF THE DEFENSE PANEL SAID PENTAGON ESTIMATES INDICATED THAT MAINTAINING A FORCE OF 20000 TROOPS IN BOSNIA COULD COST AS MUCH AS 1 BILLION TO 15 BILLION OVER A SIXMONTH PERIOD THOUGH THE PENNSYLVANIA DEMOCRAT SAID BOSNIA REPRESENTATIVES HAVE PRIVATELY TOLD HIM OILRICH PERSIAN GULF STATES WOULD BE WILLING TO ASSIST IN FINANCING THE PEACEKEEPING EFFORT THE COST CLEARLY IS A CONCERN AT A TIME OF RETRENCHMENT IN THE MILITARY AT HOME ANXIOUS TO PLAY DOWN DIFFERENCES BETWEEN THE WHITE HOUSE AND THE APPROPRIATIONS LEADERSHIP HOUSE MAJORITY LEADER RICHARD GEPHARDT BORROWED A PHRASE FROM JAPANESE BUSINESS CIRCLES AND SAID HIS FRIEND MR PANETTA WOULD PROVIDE ADMINISTRATIVE GUIDANCE TO THE PANEL NONETHELESS THE TENSIONS ARE STRIKING GIVEN THE BUDGET DIRECTOR'S LONG TIES TO THE HOUSE AND WHILE THE PRESIDENT RETAINS SUPPORT THERE IS A NOTSOSUBTLE DISTANCING GOING ON IN EVEN THE HOUSE AS INDEPENDENT PERSONALITIES MAKE THEMSELVES FELT WHEN MR CLINTON INVITED THE LEADERSHIP TO THE WHITE HOUSE FOR DINNER LAST WEEK HE SUGGESTED TO WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI THAT THEY PLAY GOLF ON THE WEEKEND OH ARE YOU GOING TO BE IN CHICAGO THE ILLINOIS DEMOCRAT IS SAID TO HAVE ANSWERED 9305060030 930506 OTC FOCUS INDEX ADVANCES 510 POINTS AS RALLY IS FUELED BY HEALTHCARE TECH ISSUES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET POSTED GAINS FOR THE SEVENTH CONSECUTIVE SESSION PROPELLED BY A RALLY IN HEALTHCARE AND TECHNOLOGY STOCKS THE NASDAQ COMPOSITE INDEX ROSE 510 OR 075 TO 68326 ADVANCING ISSUES OUTNUMBERED DECLINERS 1521 TO 1107 ON TOTAL VOLUME OF 2892 MILLION SHARES UP FROM TUESDAY'S 2688 MILLION HEALTHCARE BIOTECHNOLOGY AND HIGHTECH STOCKS ARE SHOWING A LOT OF STRENGTH SAID JOSEPH LOFTUS A SENIOR OTC TRADER AT SHEARSON LEHMAN BROTHERS OVERALL OTC COMPANIES ARE PUTTING UP EARNINGS IN LINE OR BETTER THAN EXPECTATIONS AND THE STOCKS ARE BEING REWARDED FOR IT HE SAID AS LONG AS INTEREST RATES REMAIN LOW AND THE AMOUNT OF CASH FLOWING INTO MUTUAL FUNDS CONTINUES TO BE HIGH THE MARKET WILL BE STRONG US HEALTHCARE JUMPED 2 TO 49 1/2 LINCARE HOLDINGS CLIMBED 1 TO 27 1/4 MEDCO CONTAINMENT SERVICES EDGED UP 1/2 TO 31 AND HEALTHCARE COMPARE ROSE 1 1/8 TO 14 1/8 INVESTORS ARE STARTING TO BELIEVE PRESIDENT CLINTON'S HEALTHCARE PLAN MIGHT NOT BE AS DAMAGING AS ORIGINALLY EXPECTED SAID GEORGE MOORIN VICE PRESIDENT OF OTC TRADING AT JJB HILLIARD WL LYONS INC IN LOUISVILLE KY BUT CABLE STOCKS SLID AFTER ANALYSTS REEXAMINED THE FEDERAL COMMUNICATIONS COMMISSION'S CABLE TELEVISION PRICING GUIDELINES THE DAY'S MOST ACTIVE STOCKS WERE TELECOMMUNICATIONS WHICH TUMBLED 1 3/4 TO 19 3/4 AND COMCAST WHICH DROPPED 1 1/4 TO 18 3/8 GOLDMAN SACHS & CO ANALYST BARRY KAPLAN SAID ALTHOUGH MONDAY'S RELEASE OF RATE BENCHMARKS AT FIRST APPEARED TO BE POSITIVE IT REALLY IS AS WORSE AS ORIGINALLY EXPECTED WHAT PEOPLE DIDN'T REALIZE ON TUESDAY WHEN THE STOCKS ROSE IS THAT THE RATE CHANNEL BENCHMARKS INCLUDE EQUIPMENT CHARGES SUCH AS CONVERTER BOXES THIS IS GOING TO BE AN ONGOING PROCESS OF UNDERSTANDING THE DOCUMENT AND ADJUSTING EARNINGS ESTIMATES TOKOS MEDICAL JUMPED 1 3/4 TO 8 3/4 A UNIVERSITY OF MISSISSIPPI STUDY ENDORSED THE USE OF THE COMPANY'S HOME UTERINE MONITORS TO DELAY PREMATURE BIRTHS THE RESULTS WERE PRESENTED AT THE ANNUAL MEETING OF THE AMERICAN COLLEGE OF OBSTETRICIANS AND GYNECOLOGISTS IN WASHINGTON THE SANTA ANA CALIF COMPANY PROVIDES HOME HEALTHCARE SERVICES WHICH SUPPORT PREGNANT WOMEN AND THEIR PHYSICIANS IN THE DETECTION TREATMENT AND MANAGEMENT OF PRETERM LABOR SHARES OF 3DO CO SURGED FOR A SECOND DAY LEAPING 3 3/4 TO 24 THE SAN MATEO CALIF MULTIMEDIA COMPANY HAD ITS INITIAL PUBLIC OFFERING MONDAY AT 15 A SHARE ROCHESTER COMMUNITY SAVINGS BANK SURGED 3 3/8 TO 17 3/4 THE ROCHESTER NY CONCERN SAID IT RECEIVED AN UNSOLICITED INDICATION OF INTEREST FROM A SUITOR INTERESTED IN ACQUIRING THE COMPANY MEGACARDS INC SLID 1/2 TO 2 1/4 ON TUESDAY THE ST LOUIS MAKER OF SPORTS CARDS REPORTED FIRSTQUARTER EARNINGS OF NINE CENTS A SHARE DOWN FROM 19 CENTS A YEAR EARLIER THE COMPANY BLAMED CONTRACTION IN THE PICTURE CARD MARKET AMERICAN PACIFIC CORP FELL 2 1/2 TO 22 3/4 THE LAS VEGAS COMPANY SAID TUESDAY THAT IT EARNED 30 CENTS A SHARE IN THE SECOND QUARTER ENDED MARCH 31 A YEAR EARLIER THE COMPANY EARNED 39 CENTS A SHARE AMERICAN PACIFIC IS ENGAGED IN CHEMICAL MANUFACTURING WATER TREATMENT AND POLLUTION ABATEMENT EQUIPMENT LOTUS DEVELOPMENT JUMPED 2 7/8 TO 30 7/8 ANALYSTS EXPECT LOTUS NEXT WEEK TO UNVEIL A CRITICAL NEW VERSION OF ITS FLAGSHIP 123 FOR WINDOWS SPREADSHEET SOFTWARE WHILE EARLIER VERSIONS HAVE BEEN DISAPPOINTING THE FIRST REVIEW OF THE NEW 123 PUBLISHED IN PC WEEK MONDAY WAS STRONGLY POSITIVE ALSO LOTUS AND MOBILE TELECOMMUNICATION TECHNOLOGIES' SKYTEL UNIT SAID THEY HAVE AGREED TO JOINTLY DEVELOP TECHNOLOGIES AND APPLICATIONS FOR THE WIRELESS MESSAGING MARKET MOBILE TELECOMMUNICATION ROSE 3/4 TO 20 1/2 ADOBE SYSTEMS FELL 1 3/8 TO 61 LEHMAN BROTHERS LOWERED ITS INVESTMENT RATING TO NEUTRAL FROM OUTPERFORM CENTOCOR CLIMBED 1 TO 7 1/2 PAINEWEBBER BIOTECHNOLOGY ANALYST LINDA MILLER UPGRADED HER INVESTMENT RATING TO NEUTRAL FROM UNATTRACTIVE THE MALVERN PA BIOTECHNOLOGY COMPANY REPORTED A FIRSTQUARTER LOSS OF 62 CENTS A SHARE LATE TUESDAY COMPARED WITH A 120 LOSS A YEAR AGO 9305060029 930506 BUSINESS BRIEF FIRST OF MICHIGAN CAPITAL CORP INVESTMENT BANKING FIRM SUES OVER ACQUISITION DEAL FIRST OF MICHIGAN CAPITAL CORP SAID IT HAS SUED COMERICA INC FOR BACKING OUT OF AN AGREEMENT TO PURCHASE FIRST OF MICHIGAN EARLIER THIS YEAR FIRST OF MICHIGAN A DETROITBASED REGIONAL INVESTMENT BANKING CONCERN IS SEEKING UNSPECIFIED DAMAGES IN THE SUIT IN FILED IN WAYNE COUNTY CIRCUIT COURT ACCORDING TO JOHN G MARTIN PRESIDENT AND CHIEF EXECUTIVE OFFICER COMERICA A DETROITBASED BANK HOLDING COMPANY ON JAN 10 AGREED TO ACQUIRE FIRST OF MICHIGAN IN A 45 MILLION STOCK WRAP ON MARCH 31 COMERICA SAID IT HAD TERMINATED THE AGREEMENT AFTER LEARNING THAT FOUR KEY EMPLOYEES IN FIRST OF MICHIGAN'S CORPORATE FINANCING STAFF HAD LEFT TO JOIN RONEY & CO A PRIVATELY HELD BROKERAGE IN DETROIT FIRST OF MICHIGAN LOST ITS CORPORATE FINANCING CAPABILITIES WHEN THEYLEFT A COMERICA SPOKESWOMAN SAID AT THE TIME COMERICA COULDN'T BE REACHED FIRST OF MICHIGAN ALSO SAID IT HAD DISCONTINUED A LAWSUIT IT HAD FILED AGAINST RONEY & CO AND THE FORMER EMPLOYEES 9305060028 930506 BUSINESS BRIEF GILLETTE CO JUDGE DENIES FEDERAL BID TO BLOCK PARKER PEN DEAL A FEDERAL JUDGE IN WASHINGTON DC DENIED A JUSTICE DEPARTMENT REQUEST FOR A PRELIMINARY INJUNCTION BLOCKING GILLETTE CO'S PLAN TO BUY PARKER PEN HOLDINGS INC THE JUSTICE DEPARTMENT IS CHALLENGING THE PROPOSED ACQUISITION ON ANTITRUST GROUNDS ASSERTING THAT IT WOULD GIVE GILLETTE 40 OF THE US MARKET FOR PREMIUM FOUNTAIN PENS A GILLETTE SPOKESMAN SAID DENIAL OF A PRELIMINARY INJUNCTION WILL ALLOW THE PERSONALCAREPRODUCTS COMPANY BASED IN BOSTON TO PROCEED WITH THE OFFERING OF 285 MILLION 44617 MILLION FOR PARKER NEWHAVEN ENGLAND AND CLOSE THE DEAL BY SATURDAY WE'RE DISAPPOINTED BY THE DENIAL A JUSTICE DEPARTMENT SPOKESWOMAN SAID WE CONTINUE TO BELIEVE THE MERGER IS LIKELY TO BE ANTICOMPETITIVE IN THE PREMIUM FOUNTAIN PEN MARKET AND WE'RE CONSIDERING OUR OPTIONS WHICH INCLUDE SEEKING A FULL TRIAL 9305060027 930506 BUSINESS BRIEF CAL GRAPHITE CORP RIGHTS OFFERING IS PLANNED TO COMMON STOCKHOLDERS CAL GRAPHITE CORP SAID IT PLANS A RIGHTS OFFERING TO ITS COMMON SHAREHOLDERS IN AN EFFORT TO RAISE BETWEEN 282 MILLION CANADIAN DOLLARS AND C339 MILLION US222 MILLION TO 267 MILLION CAL GRAPHITE SAID HOLDERS WILL BE OFFERED RIGHTS TO BUY TWO NEW COMMON SHARES AT C140 US110 EACH FOR EVERY SHARE CURRENTLY HELD THE KEARNEY ONTARIO MAKER AND DISTRIBUTOR OF INDUSTRIAL GRAPHITE CURRENTLY HAS 121 MILLION COMMON SHARES OUTSTANDING THE RIGHTS OFFERING WILL BE AVAILABLE TO CAL GRAPHITE SHAREHOLDERS OF RECORD MAY 13 AND IS TO EXPIRE JUNE 11 W CRAIG ESTERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CAL GRAPHITE SAID THE TRANSACTION MUST REALIZE AT LEAST C282 MILLION FOR IT TO PROCEED HE SAID WILMINGTON SECURITIES INC OF PITTSBURGH A SHAREHOLDER OF CAL GRAPHITE HAS AGREED TO BUY AT LEAST C195 MILLION OF THE RIGHTS 9305060026 930506 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG IT'S OFTEN THE LITTLE THINGS ABOUT USING COMPUTERS THAT BUG PEOPLE MOST THE GLITCHES AND NUISANCES THAT CROP UP IN DAILY USE BUT AREN'T MENTIONED IN THE MANUAL SUCH AS FINDING THAT YOU HAVE SAVED ALL YOUR DOCUMENTS IN SOME OBSCURE SECTION OF YOUR HARD DISK OR THAT YOUR PRINTER WON'T WORK RIGHT WITH THAT NEW EASIER VERSION OF YOUR SPREADSHEET PROGRAM ANOTHER IRRITATING SITUATION ARISES IF YOU TRY TO SPLIT WORK BETWEEN A COMPUTER AT THE OFFICE AND ONE AT HOME OR A LAPTOP COMPUTER WHILE TRAVELING OR ALL THREE YOU QUICKLY DISCOVER THAT IT CAN BE A NIGHTMARE TO SORT OUT THE DIFFERENT VERSIONS OF THE DATA FILES YOU CREATE ON MULTIPLE MACHINES SAY YOU DO WORK ON A REPORT AT THE OFFICE AND AT HOME WHICH COMPUTER HOLDS THE VERSION WITH THE LATEST CHANGES AND IF YOU COPY ONE OVER THE OTHER WILL YOU LOSE SOME VALUABLE MATERIAL OR YOU'RE ON THE ROAD AND YOU ENTER SOME NEW NAMES INTO YOUR ELECTRONIC ADDRESS BOOK INTENDING TO COPY THE WHOLE FILE INTO YOUR MAIN MACHINE BUT THEN YOU DISCOVER THAT THE FILE ON THE LAPTOP WAS MISSING SOME OF THE ENTRIES FROM YOUR MAIN MACHINE WHEN YOU LEFT ON YOUR TRIP SO IF YOU RELY ON THE LAPTOP VERSION YOU'LL LOSE SOME INFORMATION TO SOLVE THESE PROBLEMS SOME PEOPLE TOTE PRINTOUTS BACK AND FORTH BUT THAT REQUIRES TEDIOUS MANUAL REVISIONS OTHERS TRY COPYING DATA TO A FLOPPY DISK THAT THEY PASS BETWEEN MACHINES BUT THIS QUICKLY BREAKS DOWN IF YOU AREN'T CAREFUL TO REMEMBER WHICH OF THE VERSIONS ON THE FLOPPY CAME FROM WHICH COMPUTER NOW A CLASS OF SOFTWARE IS EMERGING TO DO THE JOB BETTER FILESYNCHRONIZATION PROGRAMS THESE LITTLE UTILITIES ARE DESIGNED TO KEEP ALL THE IMPORTANT DATA ON YOUR MULTIPLE MACHINES SYNCHRONIZED SO THAT THE VERSIONS ON EACH MACHINE ARE THE SAME AND REFLECT ALL RECENT CHANGES BY FAR THE BEST SYNCHRONIZATION PROGRAM I'VE SEEN IS A 70 PRODUCT CALLED FILERUNNER THE ONLY PRODUCT FROM A LITTLE OUTFIT CALLED MBS TECHNOLOGIES IN MCMURRAY PA FILERUNNER COMES IN VERSIONS FOR BOTH IBMCOMPATIBLE COMPUTERS A DOS VERSION ONLY SO FAR WITH A WINDOWS VERSION ON THE WAY AND FOR APPLE COMPUTER'S MACINTOSH MACHINES FILERUNNER IS DESIGNED TO USE A FLOPPY DISK TO KEEP YOUR COMPUTERS SYNCHRONIZED SO NO CABLES OR NETWORKS ARE REQUIRED HERE'S HOW IT WORKS YOU TELL FILERUNNER WHICH DISKS YOU WANT TO KEEP SYNCHRONIZED SAY THE HARD DRIVES ON YOUR OFFICE AND HOME COMPUTERS AND THE FLOPPY DISK THAT ACTS AS THEIR INTERMEDIARY YOU DON'T HAVE TO KEEP THE ENTIRE DISKS IN SYNCH THE PROGRAM LETS YOU SPECIFY THE FILES OR DIRECTORIES CALLED FOLDERS ON THE MAC THAT YOU WANT IT TO MONITOR YOU CAN SELECT ALL THE FILES IN ONE OR MORE DIRECTORIES OR JUST SPECIFIC FILES SAY CONTACT LISTS AND ELECTRONIC APPOINTMENT DATA THEN FILERUNNER AUTOMATICALLY COPIES THE RELEVANT FILES FROM THE OFFICE COMPUTER TO THE FLOPPY DISK LATER WHEN YOU POP THE FLOPPY INTO THE HOME COMPUTER FILERUNNER AUTOMATICALLY UPDATES THAT MACHINE BY REPLACING FILES IT HOLDS WITH NEWER VERSIONS FROM THE OFFICE COMPUTER PLUS ANY FILES THAT AREN'T PRESENT AT ALL IT WORKS IN BOTH DIRECTIONS WHEN IT FINDS NEWER VERSIONS OR ADDED FILES ON THE HOME COMPUTER IT SAVES THEM ON THE FLOPPY FOR LATER TRANSFER TO THE OFFICE MACHINE THE PROGRAM IS SMART IT TRACKS WHICH FILE VERSION WAS FIRST FOUND ON WHICH COMPUTER AND IT KNOWS THAT A FILE COMPLETED AT 8 AM IN SAN DIEGO IS NEWER THAN A VERSION FINISHED AT 10 AM THE SAME DAY IN PROVIDENCE THE PROGRAM ALSO RECOGNIZES IF VERSIONS OF A FILE HAVE CHANGED ON BOTH MACHINES SINCE YOU LAST RAN FILERUNNER WHEN THIS HAPPENS IT WARNS YOU THAT IT CAN'T DECIDE WHICH VERSION YOU WANT AND WILL LET YOU KEEP BOTH VERSIONS SO YOU CAN MANUALLY COMPARE THEM SEVERAL OTHER PROGRAMS OFFER SOME FORM OF FILE SYNCHRONIZATION INCLUDING THE LATEST VERSION OF TRAVELING SOFTWARE'S LAPLINK THE VENERABLE FILETRANSFER UTILITY FOR IBMCOMPATIBLE PCS AND SYMANTEC'S NORTON ESSENTIALS FOR POWERBOOK A UTILITY PACKAGE FOR PORTABLE MACS BUT FILERUNNER IS THE MERCEDES OF SYNCHRONIZATION SOFTWARE IN MY VIEW THE PROGRAM MAKES LIBERAL USE OF ONSCREEN EXPLANATIONS LETS YOU CUSTOMIZE THE SYNCHRONIZATION PROCESS AND REQUIRES JUST ONE OR TWO KEYSTROKES OR MOUSE CLICKS TO OPERATE IT CAN ALSO COMPRESS LARGE FILES TO FIT THEM ON THE FLOPPY DISK AND AUTOMATICALLY CHECK TRANSFERRED FILES FOR VIRUSES AND UNLIKE MOST COMPETITORS FILERUNNER CAN HANDLE MORE THAN TWO COMPUTERS IT EVEN TRACKS DELETED FILES AND FOLDERS AND OFFERS TO DELETE THE SAME FILES ON EACH COMPUTER SO THE KEY FILES AND DIRECTORIES YOU MONITOR REMAIN UTTERLY IDENTICAL THE MACINTOSH VERSION WILL ALSO DO BULK FILE TRANSFERS AND WILL WORK OVER A NETWORK OR A PHONE LINK TO A NETWORK THE COMPANY PLANS TO OFFER SIMILAR FUNCTIONS FOR IBMCOMPATIBLE PCS AND IS ALSO WORKING ON ADDING SEAMLESS SYNCHRONIZATION OF FILES BETWEEN IBMCOMPATIBLES AND MACS THE ONE BIG WEAKNESS IN ALL SYNCHRONIZATION PROGRAMS I'VE SEEN IS THAT THEY DEPEND SOLELY ON THE DATE AND TIME OF A FILE TO DECIDE WHICH VERSION IS LATEST THAT CAN BE DECEPTIVE BECAUSE A FEW PROGRAMS REVISE THE DATE AND TIME OF DATA FILES EVERY TIME THEY ARE OPENED EVEN IF NO CHANGES WERE MADE IN CONTENT THIS CAN MAKE AN OLDER VERSION OF DATA APPEAR NEWER THAN ONE WITH FRESH REVISIONS IF YOU HAVE SUCH A PROGRAM MBS TECHNOLOGIES CAN SUPPLY A LITTLE UTILITY TO TURN BACK THE DATE OF UNREVISED FILES ON IBMCOMPATIBLES BUT NOT MACS FILERUNNER WON'T SOLVE ALL THE PROBLEMS OF MANAGING MULTIPLE PCS BUT IT SURE MAKES LIFE EASIER 9305060025 930506 TREASURY AIDES GET A HOSTILE GRILLING ON CAPITOL HILL OVER BUSINESSTAX PLAN BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TREASURY OFFICIALS GOT A SOMETIMES HOSTILE GRILLING ABOUT PRESIDENT CLINTON'S BUSINESSTAX PROPOSALS AS THE HOUSE WAYS AND MEANS COMMITTEE CONCLUDED ITS REVIEW IN ADVANCE OF NEXT WEEK'S VOTE DEMOCRATS IN TURN TOOK SHOTS AT ADMINISTRATION PROPOSALS FOR A BROAD NEW ENERGY TAX FOR INCREASED TAXES FROM THE OVERSEAS ROYALTY INCOME OF MULTINATIONAL COMPANIES AND FOR LIMITING AN EXISTING TAX BREAK FOR US BUSINESSES IN PUERTO RICO AMONG OTHERS REPUBLICANS TOO OPPOSED PARTS OF THE CLINTON PACKAGE BUT MOST IF NOT ALL OF THEM ARE EXPECTED TO VOTE AGAINST THE FINAL BILL IN ANY FORM SO IT'S THE STATEMENTS OF DEMOCRATS WHO HOLD A 2414 EDGE ON THE TAX PANEL THAT GIVE CLUES TO THE PACKAGE'S ULTIMATE SHAPE THE COMMITTEE IS EXPECTED TO MODIFY THE ENERGY TAX AND PERHAPS DROP THE ROYALTIES TAX IN ADDITION LAWMAKERS PREDICT THEY WILL KILL THE PRESIDENT'S PROPOSED INVESTMENT TAX CREDIT ADD A PROVISION ALLOWING MORE GENEROUS WRITEOFFS FOR SMALL BUSINESSES AND RAISE THE 34 CORPORATE TAX RATE TO 35 INSTEAD OF 36 AS MR CLINTON WANTS AFTER NEXT WEEK'S COMMITTEE VOTE THE BILL IS SCHEDULED FOR HOUSE FLOOR ACTION LATE THIS MONTH THE SENATE WILL FOLLOW IN JUNE ALSO DURING THE QUESTIONING YESTERDAY SAMUEL SESSIONS THE DEPUTY ASSISTANT TREASURY SECRETARY FOR TAX POLICY SOUGHT TO REBUT CRITICISMS THAT MR CLINTON'S PROPOSED INCOMETAX INCREASES FOR THE WEALTHIEST 12 OF AMERICANS WOULD ALSO HIT MANY SMALL BUSINESSES THOUGH THE SUBJECT WAS INTRODUCED BY REPUBLICAN REP MEL HANCOCK OF MISSOURI MANY DEMOCRATS IN THE HOUSE AND SENATE HAVE GROUSED ABOUT THE SUPPOSED IMPACT ON SMALLER BUSINESSES THE TREASURY ARGUES BASED ON AN ANALYSIS OF RETURNS THIS YEAR THAT OF SEVEN MILLION INDIVIDUALS WHOSE INCOME IS MOSTLY DERIVED FROM ACTIVE BUSINESS OPERATIONS FEWER THAN 300000 OR ABOUT 4 WOULD FACE HIGHER MARGINAL TAX RATES MR CLINTON HAS PROPOSED TO RAISE THE TOP MARGINAL RATE TO 36 FROM 31 AND TO IMPOSE AN ADDITIONAL 10 SURTAX ON THE RICHEST TAXPAYERS BUSINESSES SUBJECT TO INDIVIDUAL INCOMETAX RATES INCLUDE SOLE PROPRIETORSHIPS PARTNERSHIPS SUBCHAPTER S CORPORATIONS AND FARMERS THAT INCLUDES LAWYERS INVESTMENT BANKERS ACCOUNTANTS AND OTHER PROFESSIONALS NOT COMMONLY CONSIDERED SMALL BUSINESS OWNERS THE PROPOSED ENERGY TAX WAS ATTACKED BY FARMSTATE REPRESENTATIVES WHO SEEK A BROAD EXEMPTION FOR DIESEL FUEL USED IN FARMING AND BY THOSE FROM STATES THAT PRODUCE OIL GAS AND COAL SEVERAL TAXWRITERS TOLD THE TREASURY REPRESENTATIVES THAT THE ADMINISTRATION'S PROPOSED ROYALTIES PROVISION WOULD CONTRARY TO ITS PURPOSE DRIVE US COMPANIES TO TAKE RESEARCH AND EXPERIMENTATION OPERATIONS OVERSEAS REP ROBERT MATSUI D CALIF TESTILY SAID HE FOUND IT ABSOLUTELY INCREDIBLE THAT THE ADMINISTRATION WOULD ARGUE THAT THE PROVISION ACTUALLY WOULD ARREST THE SPREAD OF RUNAWAY PLANTS ABROAD REPS BARBARA KENNELLY D CONN AND CHARLES RANGEL D NY WHOSE DISTRICTS INCLUDE NATIVES OF PUERTO RICO COMPLAINED THAT THE PROPOSED LIMITATION ON THE TAX CREDIT FOR US COMPANIES THERE WOULD COST JOBS IN THE US COMMONWEALTH BUT MR SESSIONS COUNTERED THAT A CHANGE IS NEEDED SINCE 63 OF THE TAX BENEFITS ARE GOING TO COMPANIES THAT ARE RESPONSIBLE FOR LESS THAN 13 OF JOBS CREATED THE MAJOR BENEFICIARIES ARE PHARMACEUTICAL COMPANIES MEANWHILE A COALITION OF MORE THAN 900 COMPANIES FARM GROUPS AND TRADE ASSOCIATIONS VOWED TO FIGHT THE PROPOSED ENERGY TAX THE COALITION WHICH CLAIMS THE TAX WOULD COST MORE THAN 600000 JOBS BY 1998 INCLUDES SUCH POWERFUL LOBBIES AS THE NATIONAL ASSOCIATION OF MANUFACTURERS NATIONAL FEDERATION OF INDEPENDENT BUSINESS AND AMERICAN FARM BUREAU FEDERATION THIS IS THE LARGEST GROUP WE HAVE EVER PUT TOGETHER IN THE SHORTEST AMOUNT OF TIME SAID JERRY JASINOWSKI PRESIDENT OF THE MANUFACTURERS ASSOCIATION I'M CONVINCED WE WILL BEAT THE ENERGY TAX IN THE SENATE 9305060024 930506 TENNECO'S CASE TO SHUT 3 PLANTS RACINE WIS AP CASE CORP THE AGRICULTURAL EQUIPMENT AND HEAVY EQUIPMENT UNIT OF TENNECO INC SAID IT WILL CLOSE PLANTS IN WISCONSIN MISSISSIPPI AND ENGLAND THE CLOSINGS ARE PART OF A 920 MILLION RESTRUCTURING PROGRAM THAT WAS UNVEILED IN MARCH CASE SAID ITS SCHOFIELD WIS FACTORY WHICH EMPLOYS 425 WORKERS WILL BE CLOSED BY LATE SUMMER IT SAID TENTATIVE DECISIONS ALSO CALL FOR CLOSING PLANTS LATER THIS YEAR IN MELTHAM ENGLAND AND SOUTHAVEN MISS AND STREAMLINING AND CONSOLIDATING OPERATIONS IN DONCASTER ENGLAND NEUSS GERMANY AND HINSDALE ILL CURRENTLY CASE EMPLOYS 18600 WORKERS IN 18 PLANTS 9305060023 930506 TECHNICAL BRIEF CORNING INC RESEARCH PACTS ARE RENEWED WITH TWO RUSSIAN INSTITUTES CORNING INC SAID IT RENEWED RESEARCH AGREEMENTS WITH TWO INSTITUTES IN ST PETERSBURG RUSSIA CITING CORDIAL AND PRODUCTIVE SCIENTIFIC RELATIONSHIPS SINCE IT SIGNED AN INITIAL AGREEMENT A YEAR AGO CORNING WHICH MAKES CERAMICS AND OPTICAL FIBER SAID IT RENEWED FOR TWO ADDITIONAL YEARS AGREEMENTS WITH ST PETERSBURG'S INSTITUTE FOR SILICATE CHEMISTRY AND THE INSTITUTE OF OPTICAL MATERIALS SCIENCE OF THE SCIENTIFIC CENTER AT VAVILOV STATE OPTICAL INSTITUTE FRANK L THIEL DIRECTOR OF TECHNOLOGY ACQUISITION AT THE CORNING NY COMPANY SAID THE AGREEMENTS COVER ABOUT 120 SCIENTISTS WHO WILL CONTINUE TO PERFORM BASIC RESEARCH ON OPTICAL MATERIALS GLASS STRUCTURE AND PROPERTIES AND OTHER TOPICS THE COMPANY SAID IT IS PREPARING SEVERAL PATENT APPLICATIONS BASED ON THE FIRST YEAR'S WORK ALTHOUGH IT DECLINED TO PROVIDE DETAILS CORNING WOULDN'T DISCLOSE FINANCIAL TERMS 9305060022 930506 BUSINESS BRIEF AH BELO CORP PROFIT FOR 1993 IS EXPECTED TO MATCH ANALYST ESTIMATES AH BELO CORP EXPECTS THAT 1993 EARNINGS WILL BE IN LINE WITH ANALYSTS' ESTIMATES OF 220 A SHARE ROBERT W DECHERD CHAIRMAN AND CHIEF EXECUTIVE OFFICER TOLD SHAREHOLDERS AT THE ANNUAL MEETING THE DALLAS MEDIA COMPANY'S NET INCOME MORE THAN TRIPLED IN 1992 TO 372 MILLION OR 190 A SHARE INCLUDING A 4 MILLION PRETAX GAIN AND IN THE 1993 FIRST QUARTER EARNINGS DOUBLED TO 139 MILLION OR 70 CENTS A SHARE HOWEVER MR DECHERD CAUTIONED THAT EARNINGS IN THE LAST THREE QUARTERS OF 1993 WON'T INCREASE AS SHARPLY AS IN THE FIRST QUARTER HE NOTED THAT AN EXTRAORDINARY GAIN OF 66 MILLION OR 33 CENTS A SHARE AND OTHER FACTORS PRODUCED FIRSTQUARTER RESULTS ABOVE OUR EXPECTATIONS THE STRONG RESULTS IN 1992 AND THE FIRST QUARTER HAVE ENCOURAGED THE COMPANY TO CONSIDER POSSIBLE ACQUISITIONS MR DECHERD SAID BUT HE WOULDN'T ELABORATE 9305060021 930506 INTELLICALL MAKES INDONESIA ENTRY DALLAS INTELLICALL INC SAID THAT PT CENTRALINDO PANOA SAKTI AN INDONESIAN TELECOMMUNICATIONS COMPANY HAS AGREED TO BUY 20 MILLION OF ITS PAY PHONES AND NETWORK MANAGEMENT SYSTEMS THE SALE REPRESENTS THE TELECOMMUNICATIONS COMPANY'S ENTRY INTO INDONESIAN MARKETS CENTRALINDO HAS BEEN AWARDED A CONCESSION BY THE GOVERNMENTOWNED TELEPHONE COMPANY IN INDONESIA TO PROVIDE PUBLIC PHONE SERVICE IN JAVA AND BALI 9305060020 930506 CANADIAN BANKRUPTCIES DECLINE OTTAWA CANADIAN BANKRUPTCIES TOTALED 6631 IN MARCH A 6 DECLINE FROM 7057 A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID FOR JANUARY THROUGH MARCH BANKRUPTCIES TOTALED 17935 AN 119 DECLINE FROM 20357 A YEAR EARLIER THE MARCH FIGURE INCLUDED 5367 BANKRUPTCIES BY INDIVIDUALS A 69 DECLINE FROM 5766 A YEAR EARLIER AND 1264 BUSINESS BANKRUPTCIES A 21 DECLINE FROM 1291 A YEAR EARLIER 9305060019 930506 CANADA CONSIDERS BOND BUYBACK OTTAWA THE CANADIAN FINANCE DEPARTMENT SAID IT IS STUDYING THE POSSIBILITY OF BUYING IN THE BOND MARKET SOME HIGH COUPON CANADIAN GOVERNMENT BONDS SUCH A BUYBACK PROGRAM WOULD BE MODEST THE DEPARTMENT SAID 9305060018 930506 WHO'S NEWS CAPITAL HOLDING CORP CAPITAL HOLDING CORP LOUISVILLE KY RAYMOND V GILMARTIN 52 YEARS OLD WAS ELECTED A DIRECTOR OF THIS INSURANCE AND CONSUMER FINANCE CONCERN MR GILMARTIN IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BECTON DICKINSON & CO A MAKER OF MEDICAL SUPPLIES AND EQUIPMENT HE FILLS A VACANCY CREATED BY THE RETIREMENT OF JOHN IZARD 70 FORMER PARTNER OF THE LAW FIRM KING & SPALDING 9305060017 930506 CAPITAL HOLDING JUNIOR PREFERRED LOUISVILLE KY CAPITAL HOLDING CORP SAID IT PLANS TO EXERCISE ITS OPTION TO CONVERT ITS SERIES J NONCUMULATIVE CONVERTIBLE JUNIOR PREFERRED STOCK INTO COMMON EFFECTIVE JUNE 16 THE INSURANCE AND CONSUMERFINANCE COMPANY SAID EACH OF THE APPROXIMATELY 420000 PREFERRED SHARES WILL BE EXCHANGED FOR 555 SHARES OF COMMON IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CAPITAL HOLDING'S COMMON CLOSED AT 40 DOWN 125 CENTS 9305060016 930506 WILLIAMS TO CALL PREFERRED STOCK TULSA OKLA WILLIAMS COS SAID IT WILL REDEEM ALL OF ITS 3875 CONVERTIBLE EXCHANGEABLE PREFERRED STOCK THE PREFERRED STOCK WILL BE REDEEMED ON OR BEFORE JUNE 15 AT A REDEMPTION PRICE OF 523250 A SHARE PLUS FULL CUMULATIVE AND UNPAID DIVIDENDS TO THE REDEMPTION DATE UNTIL THE REDEMPTION DATE THE PREFERRED STOCK MAY BE CONVERTED INTO COMMON SHARES AT A CONVERSION RATE OF 12739 SHARES OF COMMON STOCK FOR EACH SHARE OF PREFERRED STOCK 9305060015 930506 UNITED AIRLINES' TRAFFIC RISES CHICAGO UNITED AIRLINES SAID ITS APRIL TRAFFIC ROSE 175 TO ABOUT 780 BILLION REVENUE PASSENGER MILES FROM 664 BILLION REVENUE PASSENGER MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 647 FROM 625 FOR THE FIRST FOUR MONTHS OF 1993 THE UAL CORP UNIT SAID IT FLEW ABOUT 302 BILLION REVENUE PASSENGER MILES UP 174 FROM 257 BILLION MILES IN THE SAME PERIOD IN 1992 LOAD FACTOR WAS 639 COMPARED WITH 613 9305060014 930506 CHICAGO MERCANTILE SEAT SALE CHICAGO THE CHICAGO MERCANTILE EXCHANGE SAID IT SOLD A SEAT ON THE EXCHANGE FOR 610000 UP 10000 FROM THE PREVIOUS SALE ON APRIL 22 A SEAT ON THE EXCHANGE IS CURRENTLY QUOTED AT 592000 BID AND 790000 OFFERED THE RECORD PRICE FOR A SEAT IS 620000 SET JAN 9305060013 930506 UK PHONE SATELLITE LICENSES LONDON UK TECHNOLOGY MINISTER EDWARD LEIGH SAID HE HAS AWARDED FOUR NEW TELECOMMUNICATIONS LICENSES MR LEIGH SAID HE HOPED THE LICENSES WOULD LEAD TO GREATER COMPETITION TO THE DUOPOLY HELD BY BRITISH TELECOMMUNICATIONS PLC AND MERCURY COMMUNICATIONS LTD A UNIT OF CABLE & WIRELESS PLC ONE OF THE LICENSES HAS BEEN GIVEN TO CITY OF LONDON TELECOMMUNICATIONS LTD TO PROVIDE TELECOM SERVICES IN LONDON THE OTHER LICENSES WENT TO SATELLITE INFORMATION SERVICES LTD ESAT TELECOMMUNICATIONS LTD AND PANAMSAT LP TO OPERATE INTERNATIONAL SATELLITE SERVICES MR LEIGH SAID THAT 18 COMPANIES HAVE BEEN AWARDED FIXEDSERVICES LICENSES SINCE MARCH 1991 WHEN THE GOVERNMENT FIRST PROPOSED ENCOURAGING COMPETITION IN THE SECTOR 9305060012 930506 BUSINESS BRIEF LEGG MASON INC FOURTHPERIOD NET ROSE 32 AT SECURITIES BROKERAGE FIRM REGIONAL SECURITIES BROKERAGE FIRM LEGG MASON INC SAID FISCAL FOURTHQUARTER NET INCOME ROSE 32 TO A RECORD 87 MILLION AIDED BY HIGHER REVENUE FROM INVESTMENT BANKING AND INVESTMENT ADVISORY AND BROKERAGE ACTIVITIES THE BALTIMOREBASED CONCERN SAID PROFIT FOR THE FOURTH QUARTER ENDED MARCH 31 JUMPED TO 87 MILLION OR 93 CENTS A SHARE FROM 66 MILLION OR 72 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED NEARLY 16 TO 923 MILLION FROM 798 MILLION IN THE YEAREARLIER QUARTER PROFIT FOR THE FISCAL YEAR JUMPED 43 TO A RECORD 302 MILLION OR 326 A SHARE FROM 211 MILLION OR 232 A SHARE IN FISCAL 1992 REVENUE CLIMBED 15 TO 3363 MILLION FROM 2924 MILLION A YEAR EARLIER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING LEGG MASON'S SHARES ROSE 25 CENTS TO 2525 EACH 9305060011 930506 SANTA ANITA INSTRUCTS ITS BANKER TO EXPLORE RESTRUCTURING PLANS ARCADIA CALIF SANTA ANITA COS HAS ASKED ITS INVESTMENT BANKER TO EXPLORE RESTRUCTURING PLANS TO IMPROVE THE PERFORMANCE OF ITS HORSE RACING AND REALTY OPERATIONS SAID STEPHEN F KELLER CHAIRMAN OF SANTA ANITA REALTY ENTERPRISES INC AND PRESIDENT AND CHIEF EXECUTIVE OF SANTA ANITA OPERATING CO MR KELLER SAID THE COMPANY IS FOCUSING IN PART ON ITS PAIRED SHARE STRUCTURE THE TWO COMPANIES TRADE AS ONE SECURITY ON THE NEW YORK STOCK EXCHANGE IN COMPOSITE TRADING YESTERDAY ON THE BIG BOARD SANTA ANITA CLOSED AT 1725 UP 125 CENTS IF WE CAN UNLOCK THE PAIRED' SHARE STRUCTURE AND USE IT IN A MORE CONSTRUCTIVE WAY I THINK IT HAS A GREAT DEAL OF POTENTIAL TO ENHANCE SHAREHOLDER VALUE HE SAID HE WOULDN'T COMMENT FURTHER ONLY A HANDFUL OF OTHER COMPANIES HAVE PAIRED SECURITIES SANTA ANITA'S INVESTMENT BANKER IS GLEACHER & CO NEW YORK MR KELLER ALSO SAID THAT SANTA ANITA HAS JOINED FORCES WITH RIVAL HOLLYWOOD PARK INC TO FIND WAYS TO INCREASE ATTENDANCE AT THEIR RESPECTIVE HORSERACING PARKS BUSINESS HAS BEEN HURT BY THE INCREASING POPULARITY OF CALIFORNIA'S LOTTERY AND BY EXPANDED INTERTRACK WAGERING MR KELLER SAID MR KELLER ALSO SAID THE COMPANY WANTS TO RAISE CAPITAL FOR INVESTMENT IN REAL ESTATE BECAUSE OF DEPRESSED VALUES IN SOUTHERN CALIFORNIA HE SAID HOWEVER THAT THE COMPANY DOESN'T WANT TO FURTHER DILUTE SHAREHOLDERS' INTEREST IN ITS EXISTING ARCADIA PROPERTIES THAT WILL TAKE SOME RESTRUCTURING IN ITS ANNUAL REPORT THE COMPANY SAID THAT BECAUSE OF SANTA ANITA OPERATING CO'S OPERATING LOSSES AND CONTINUING REVENUE EROSION IT MIGHT NOT BE ABLE TO CONTINUE TO PAY RENT TO THE REALTY COMPANY AT PREVIOUS LEVELS THAT STATEMENT IN THE JOINT LETTER BY THE TWO COMPANIES' TOP EXECUTIVES RAISED SHAREHOLDER CONCERNS THAT THE REALTY COMPANY MIGHT BE FORCED TO CUT ITS DIVIDEND TO SHAREHOLDERS YESTERDAY HOWEVER THE COMPANY DECLARED A REGULAR QUARTERLY DIVIDEND OF 34 CENTS A SHARE AND SAID IT EXPECTS TO CONTINUE TO PAY DIVIDENDS AT THE ANNUAL RATE OF 136 A SHARE FOR THE FORSEEABLE FUTURE THE MATTER OF CUTTING THE DIVIDEND WAS CONSIDERED AND REJECTED MR KELLER SAID 9305060009 930506 WHO'S NEWS COSTCUTTING BANKER IS NAMED BY IBM TO OVERSEE PERSONNEL REORGANIZATION BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CONTINUING THE INFLUX OF COMPUTERINDUSTRY OUTSIDERS TAKING OVER INTERNATIONAL BUSINESS MACHINES CORP VETERAN BANKER GERALD CZARNECKI WAS NAMED TO A BROAD STAFF JOB OVERSEEING PERSONNEL AND ADMINISTRATION MR CZARNECKI 53 YEARS OLD IS EXPECTED TO TAKE A TOUGH UNSENTIMENTAL APPROACH TO REMAKING ONE OF AMERICA'S MOST PATERNALISTIC WORKPLACES IN HIS MOST RECENT JOB HE TURNED AROUND HONOLULU'S HONFED BANK BY CUTTING A THIRD OF ITS EMPLOYEES SHEDDING ITS BIG REALESTATE PORTFOLIO AND SHARPENING ITS FINANCIAL SERVICES UNTIL RECENTLY IBM EMPLOYEES ENJOYED AN EXTRAORDINARY RANGE OF BENEFITS AND A TRADITION OF LIFETIME EMPLOYMENT IBM OFFICIALLY ABANDONED THE NOLAYOFF TRADITION THIS YEAR AND MR CZARNECKI SAID THAT HE WILL BE TAKING A CLOSE LOOK AT IBM'S OTHER PERSONNEL PRACTICES EVERY DECISION WITH RESPECT TO BENEFITS AND COMPENSATION HAS TO BE A BALANCE BETWEEN MAXIMIZING SHAREHOLDER RETURN AND MAXIMIZING EMPLOYEE WELFARE HE SAID IN AN INTERVIEW HIS APPOINTMENT IS A SURPRISING MOVE SINCE HIS RESUME INCLUDES LITTLE DIRECT EXPERIENCE IN PERSONNEL OR HIGH TECHNOLOGY PEOPLE CLOSE TO IBM'S NEW CHAIRMAN AND CHIEF EXECUTIVE LOUIS V GERSTNER SAID THAT INSTEAD OF A TRADITIONAL HEAD OF PERSONNEL MR GERSTNER WANTED A WIDERANGING CHIEF OF STAFF WHO WOULD BE CLOSELY INVOLVED IN TRANSFORMING IBM'S STRATEGY AND ORGANIZATION HE'S LOOKING FOR SOMEONE WHO'S BUILT UP STAFFS AND SOMEONE WHO'S TAKEN DOWN STAFFS SOMEONE WHO CAN GO HEADTOHEAD WITH DIVISION CHIEFS ON THEIR OPERATING STRUCTURE AND THINK LIKE A BUSINESSMAN SAID EUGENE CROISANT WHOM MR GERSTNER RECRUITED AS RJR NABISCO HOLDINGS CORP'S HEAD OF PERSONNEL AND ADMINISTRATION MR CROISANT AND MR CZARNECKI WORKED TOGETHER AT CONTINENTAL BANK FOR SEVERAL YEARS IN THE 1960S AND 1970S MR CROISANT PASSED ALONG HIS OLD COLLEAGUE'S NAME TO MR GERSTNER OVER BREAKFAST SHORTLY BEFORE THE CHAIRMAN LEFT RJR FOR IBM MR CZARNECKI HAD HELD EXECUTIVE JOBS AT SEVERAL BANKS WHEN AN INVESTOR GROUP LED BY FINANCIER WILLIAM SIMON BROUGHT HIM IN TO RUN HONFED THEN AN AILING THRIFT ARRIVING IN 1987 MR CZARNECKI HELPED RESUSCITATE HONFED AND PROFITTED HANDSOMELY WHEN BANKAMERICA CORP BOUGHT IT LAST YEAR BANKAMERICA KEPT HIM ON AS CHAIRMAN OF BANK OF AMERICA HAWAII THE SAN FRANCISCO BANKING GIANT SAID IT WOULD NAME A SUCCESSOR SOON IN HAWAII MR CZARNECKI PRONOUNCED ZARNECKY TOOK AGGRESSIVE STEPS TO OVERCOME A CHALLENGE HE WILL ALSO FACE AT IBM ADAPTING TO A DEEPROOTED INSULAR CULTURE HE BECAME CHAIRMAN OF THE STATE'S CHAMBER OF COMMERCE AND RUNS ITS UNITED WAY CAMPAIGN HE'S A VERY NONONSENSE DIRECT HARDCHARGING GUY THAT LIKES GOALS AND WILL WORK VERY HARD TO ACHIEVE THEM SAID GERALD PARSKY A LOS ANGELES INVESTOR WHO WAS MR SIMON'S PARTNER IN THE HONFED INVESTMENT AT IBM MR CZARNECKI'S TITLE WILL BE SENIOR VICE PRESIDENT FOR HUMAN RESOURCES AND ADMINISTRATION REPORTING TO MR GERSTNER HE SUCCEEDS WALTON BURDICK 60 WHO WILL RETIRE THIS MONTH MR CZARNECKI IS THE LATEST IN A WAVE OF TRANSPLANTS MR GERSTNER HAS BROUGHT TO IBM A COMPANY THAT LONG FILLED ITS TOP JOBS WITH CAREER BIG BLUE MEN JUST THIS WEEK MR GERSTNER TAPPED JEROME YORK OF CHRYSLER CORP TO BECOME CHIEF FINANCIAL OFFICER HE HAS ALSO NAMED NEW CHIEFS OF COMMUNICATIONS AND OF IBM'S BIG DISKDRIVE DIVISION 9305060008 930506 RTC TO PUT 23 S&LS UP FOR BID FIRST SALE OF THRIFTS IN A WHILE WASHINGTON THE RESOLUTION TRUST CORP WILL PUT 23 SAVINGSANDLOAN ASSOCIATIONS UP FOR BID ITS FIRST SALE OF THRIFT INSTITUTIONS IN MORE THAN A YEAR SINCE APRIL 1992 THE RTC THE GOVERNMENT'S S&L CLEANUP AGENCY HAS SAID IT WAS TOO BROKE TO DISPOSE OF FAILED THRIFTS CONGRESS IS CURRENTLY CONSIDERING LEGISLATION TO GIVE THE AGENCY MORE BAILOUT FUNDS BUT THE GENERAL ACCOUNTING OFFICE AS PREVIOUSLY REPORTED CONFIRMED THAT THE AGENCY HAS FOUND 5 BILLION IN USABLE RESERVES AND THE TREASURY DEPARTMENT RELEASED 3 BILLION OF THAT AMOUNT SO THE RTC COULD UNLOAD SOME OF THE 85 FAILED THRIFTS CURRENTLY UNDER ITS CARE SO FAR THE RTC HAS SOLD OR CLOSED 654 THRIFTS THOSE SALES ALONG WITH COLLECTED LOAN PAYMENTS HAVE BROUGHT IN 316 BILLION TO HELP PAY THE COSTS OF COVERING DEPOSITS THE AGENCY BASED ON BIDS IT RECEIVES DECIDES WHETHER IT IS LESS COSTLY TO SELL AN S&L OR TO CLOSE IT AND PAY DEPOSITORS DIRECTLY BIDS WILL BE TAKEN IN TWO SEGMENTS FOR EACH OF THE 23 S&LS PROSPECTIVE BUYERS WILL BE ASKED TO BID ON THE THRIFTS' ASSETS AND SEPARATELY TO SPECIFY HOW MUCH THEY ARE WILLING TO PAY TO REDUCE THE SIZE OF THE RTC'S OBLIGATION FOR PAYING THE S&L DEPOSITS WILLIAM ROELLE AN RTC SENIOR VICE PRESIDENT SAID THE AGENCY HOPES THAT THE 3 BILLION IN LOSSCOVERING FUNDS WILL ALLOW THE AGENCY TO SELL SUBSTANTIALLY ALL OF THE 23 THRIFTS BY SEPTEMBER THE 23 S&LS INCLUDE HOMEFED BANK SAN DIEGO 52 BILLION IN DEPOSITS HOMESTEAD FEDERAL SAVINGS ASSOCIATION SAN FRANCISCO 11 BILLION HOME UNITY FEDERAL SAVINGS & LOAN ASSOCIATION LAFAYETTE HILL PA 5297 MILLION FIRST AMERICAN FEDERAL SAVINGS BANK GREENSBORO NC 4861 MILLION AND FIRST FEDERAL SAVINGS & LOAN ASSOCIATION PONTIAC MICH 3167 MILLION 9305060006 930506 MARKETING BRIEF NOTED DISNEY ON STAGE WALT DISNEY CO SAID A LIVE BROADWAY MUSICAL VERSION OF ITS ANIMATED MOVIE BEAUTY & THE BEAST WILL PLAY FOR FOUR WEEKS AT THE MUSIC HALL IN HOUSTON BEGINNING DEC 2 FURTHER ENGAGEMENTS HAVEN'T BEEN SET BUT DISNEY INSIDERS SAY THE SHOW COULD OPEN ON BROADWAY AS EARLY AS SPRING 1994 THE MUSICAL WILL BE MOUNTED BY THEATRE UNDER THE STARS A NONPROFIT CIVIC LIGHT OPERA COMPANY IN HOUSTON NEWSPAPERS THE INTERNATIONAL EDITION OF GANNETT CO'S FLAGSHIP USA TODAY WILL BEGIN PRINTING IN LONDON VIA SATELLITE LATER THIS YEAR BRITAIN WILL BE THE THIRD COUNTRY OUTSIDE OF THE US BESIDES HONG KONG AND SWITZERLAND IN WHICH THE EDITION IS PRINTED IT WILL BE PRINTED THERE BY NEWSFAX INTERNATIONAL LTD CURRENTLY COPIES REACH LONDON BY CHARTER AIRCRAFT PUBLISHING READER'S DIGEST ASSOCIATION INC WILL LAUNCH A CZECHLANGUAGE EDITION IN THE CZECH REPUBLIC IN OCTOBER THE PUBLISHER AND DIRECT MARKETER WILL ESTABLISH A SUBSIDIARY IN PRAGUE TO PUBLISH READER'S DIGEST VYBER AND EXPECTS TO HAVE A FIRST PRESS RUN OF 50000 COPIES WHO'S NEWS MARK GOMPERTZ 38 WAS NAMED VICE PRESIDENT AND PUBLISHER OF SIMON & SCHUSTER TRADE PAPERBACKS IN CHARGE OF THE FIRESIDE AND TOUCHSTONE IMPRINTS SIMON & SCHUSTER IS A UNIT OF PARAMOUNT COMMUNICATIONS INC MR GOMPERTZ WAS VICE PRESIDENT AND PUBLISHER OF TRADE PAPERBACKS AT HEARST CORP'S AVON BOOKS HE FILLS A VACANCY CREATED LAST YEAR WHEN DAN FARLEY LEFT TO BECOME PUBLISHER OF LITTLE BROWN & CO 9305060005 930506 WHO'S NEWS SAFECO CORP SAFECO CORP SEATTLE ROGER H EIGSTI 51 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS INSURANCE COMPANY WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN HE SUCCEEDS BRUCE MAINES WHO DIED MONDAY 9305060004 930506 INSURERS GENERAL RE CONTINENTAL REPORT DECLINES IN EARNINGS NEW YORK LOSSES ON CATASTROPHES LED TO DECLINES IN FIRSTQUARTER NET INCOME FOR GENERAL RE CORP AND CONTINENTAL CORP STAMFORD CONNBASED GENERAL RE THE COUNTRY'S LARGEST REINSURER REPORTED NET INCOME OF 1606 MILLION OR 186 A SHARE COMPARED WITH 2078 MILLION OR 238 A SHARE A YEAR EARLIER OPERATING INCOME WHICH EXCLUDES CAPITAL GAINS ROSE TO 1247 MILLION OR 144 A SHARE COMPARED WITH 1165 MILLION OR 133 A SHARE REVENUE ROSE TO 9254 MILLION COMPARED WITH 8497 MILLION THE BOMBING OF THE WORLD TRADE CENTER AND THE MARCH BLIZZARD ON THE EAST COAST LED TO THE DECLINE IN GENERAL RE'S NET INCOME THE COMPANY SAID ALL IN ALL IT WAS A DECENT QUARTER AND VERY GOOD EXCLUDING THE CATASTROPHES SAID ANALYST STEVEN GAVIOS OF KIDDER PEABODY & CO HE CITED THE INCREASE IN PREMIUMS AND STRONG UNDERWRITING RESULTS EXCLUDING THE CATASTROPHES THE RESULTS WERE GENERALLY IN LINE WITH ANALYSTS' FORECASTS GENERAL RE ANNOUNCED EARNINGS AFTER THE CLOSE OF STOCK TRADING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GENERAL RE CLOSED AT 117125 UP 2125 CONTINENTAL A NEW YORK PROPERTY AND CASUALTY INSURER EARNED 226 MILLION OR 40 CENTS A SHARE COMPARED WITH 323 MILLION OR 58 CENTS A SHARE A YEAR EARLIER OPERATING INCOME WAS TWO CENTS A SHARE COMPARED WITH 56 CENTS A YEAR AGO IN BIG BOARD COMPOSITE TRADING YESTERDAY CONTINENTAL CLOSED AT 29 UP 375 CENTS EXCLUDING THE CATASTROPHE LOSSES THE COMPANY ENJOYED A SIGNIFICANT IMPROVEMENT IN UNDERWRITING PERFORMANCE I EXPECT THE TREND TO CONTINUE THROUGHOUT 1993 SAID CHAIRMAN JOHN MASCOTTE REVENUE ROSE 83 TO 13 BILLION FROM 12 BILLION 9305060003 930506 MONEY FUNDS' YIELDS WERE LITTLE CHANGED IN THE LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS WERE LITTLE CHANGED IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD REMAINED AT 265 COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF TAXABLE FUNDS REPORTING TO THE NEWSLETTER DECREASED BY 1874 MILLION TO 48763 BILLION THE LATEST TOTAL HOWEVER INCLUDES NINE FUNDS THAT GAVE DATA TO MONEY FUND REPORT FOR THE FIRST TIME THIS WEEK THEY BRING THE TOTAL NUMBER OF TAXABLE FUNDS TO 597 THE NEW FUNDS ADDED A TOTAL OF 129 BILLION TO ASSETS 928 MILLION OF WHICH WAS INSTITUTIONAL MONEY ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 63 DAYS A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT A MAJOR CHANGE IN SHORTTERM INTEREST RATES SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS CREPT UP TO 262 FROM 261 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD SLIPPED TO 263 FROM 265 WHILE THE AVERAGE 30DAY COMPOUND YIELD EASED TO 267 FROM 268 ACCORDING TO THE NEWSLETTER YIELDS ON TAXFREE FUNDS DECLINED FRACTIONALLY IN THE LATEST WEEK THE AVERAGE SEVENDAY COMPOUND YIELD FOR INSTANCE SLID TO 201 FROM 204 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 279 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 291 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 321 TAXEXEMPT FUNDS DIPPED TO 9868 BILLION A DECLINE OF 743 MILLION WHILE AVERAGE MATURITY LENGTHENED BY ONE DAY TO 49 DAYS ACCORDING TO MONEY FUND REPORT 9305060002 930506 UNINSURED AND PROUD OF IT BY WILLIAM BATES I'M ONE OF THOSE 35 MILLION AMERICANS WITHOUT THE HEALTH INSURANCE THAT COSTS ON AVERAGE ABOUT 3000 PER INDIVIDUAL PER YEAR AS THE CLINTON ADMINISTRATION SCRAMBLES TO DO SOMETHING ABOUT ME I HAVE THAT OLD SICK FEELING IN MY GUT LAST SUFFERED AT AGE 16 WHEN MY MOTHER BOUGHT CLOTHES FOR ME THAT SHE WAS CONVINCED WERE THEN IN FASHION THEY'RE IN THE CLOSET TO THIS DAY ATTESTING TO THE BENEVOLENT BUT MISGUIDED PATERNALISM OR IN THIS CASE MATERNALISM AFOOT PATERNALISTS HAVE GOOD HEARTS BUT WE KNEW EVEN AS TEENAGERS THAT THEY JUST DIDN'T UNDERSTAND I'VE RUN MY OWN BUSINESS NEARLY ALL MY ADULT LIFE THERE HAVE BEEN GOOD YEARS WHEN I COULD HAVE BOUGHT HEALTH INSURANCE AND BAD YEARS WHEN I COULD NOT EVERY GOOD YEAR I COLLECT POLICY AND PRICE INFORMATION AND MULL THIS DECISION OVER I'VE YET TO SIGN ON I'VE MADE A RATIONAL DECISION TO REMAIN UNINSURED MORE CORRECTLY SELFINSURED AND TO FORGO CERTAIN CARE I TAKE PERVERSE PRIDE IN BOYCOTTING AN OVERPRICED MONOPOLISTIC INDUSTRY THAT PREYS ON THE FEARS OF THE PUBLIC IN A WAY THAT WOULD LAND ANYONE ELSE IN THE SLAMMER AS I SHOP FOR HEALTH CARE AS NEEDED I CAN SAY THAT THE LEGIONS OF THE INSURED ARE MY PROBLEM NOT THE OTHER WAY AROUND JUST ONE ATTEMPT AT NEGOTIATION WITH A DOCTOR OR DENTIST REVEALS THAT PRICES IN THIS INDUSTRY ARE STUCK AT INFLATED LEVELS BECAUSE INSURANCE FOOTS THE BILL INDEED THE INSURANCE SYSTEM KILLS THE VERY DISCOURSE NEEDED FOR RATIONAL PRICING IN A MARKET SYSTEM THOSE OF US WITHOUT INSURANCE LEARN TO MAKE VERY DELICATE INQUIRIES INTO COSTS LEST WE RISK OUTOFHAND REJECTION AS A PATIENT WHILE THE PLIGHT OF THE UNINSURED IS THE SUBJECT OF MUCH PONTIFICATION THE PONTIFICATORS ALL SEEM TO HOLD GOVERNMENT OR MEDIA JOBS UNDER WHICH THEY THEMSELVES ARE UNDOUBTEDLY INSURED THEY GRAVELY INFORM US THAT WE ARE SPOILED BRATS INCAPABLE OF LIVING WITH DELAY AND INCONVENIENCE I PAY FOR HEALTH CARE OUT OF MY OWN POCKET I NOT ONLY ACCEPT CLINICSTYLE CARE I SEEK IT OUT MY THEORY IS CRUDE AND SIMPLE IF IT'S GOOD ENOUGH FOR THE ARMY IT'S GOOD ENOUGH FOR ME I RECENTLY NEEDED A ROOT CANAL MY JAW HURT WAITING WAS NOT AN OPTION I MADE MY FIRST CALL TO A SUBURBAN ENDODONTIST AN INSIDETHETOOTH SPECIALIST ROOT CANAL HE TOLD ME IS HIS SPECIALTY HE COULD SEE ME RIGHT AWAY PRICE QUOTED 750 THEN ON A NEW YORK CITY SUBWAY AN AD FOR A BUDGET DENTAL CLINIC CAUGHT MY EYE ROOT CANAL 350 I CALLED THE TOLLFREE NUMBER GOT AN IMMEDIATE APPOINTMENT AND JOINED THE PACKED WAITING ROOM AFTER SEVERAL VISITS I FIGURED OUT THAT TELEPHONE APPOINTMENTS WERE DUTIFULLY WRITTEN DOWN BUT NEVER LOOKED UP YOU SIGNED IN ON ARRIVAL AND SAW THE NEXT AVAILABLE DENTIST REVISITS HOWEVER PERMITTED THE SAME DENTIST I LIKED THIS TO MY BUSINESSMAN'S EYE THE BUDGET CLINIC WAS A THING OF BEAUTY THEY HAD A BUNCH OF DENTISTS AND THEY KEPT THEM BUSY MY BUDGET DENTIST WAS AN ARMENIAN BORN IN SYRIA SAVING TO OPEN HIS OWN PRACTICE HERE HE WAS AS GOOD AS ANY I'VE BEEN TO AND I LIKED HIM BETTER WOULD I HAVE RECEIVED BETTER CARE FROM THE EXPENSIVE SUBURBAN ENDODONTIST I COULDN'T AFFORD TO FIND OUT WHAT IS THE LESSON OF THE BUDGET CLINIC I'VE LEARNED TO LIVE WITHOUT SOMETHING ELSE I CAN'T AFFORD BEING SELFINSURED MEANS THAT SOMETIMES YOU NOBODY ELSE TAKE THE HIT THERE ARE PEOPLE OUT THERE WHOSE TEETH HURT AND WHO TRULY CAN'T COME UP WITH 350 ALTHOUGH THE MOTIVATING POWER OF DENTAL PAIN IN RAISING CASH SHOULD BE STUDIED BY SOME MBA AND I KNOW THAT 350 IS PEANUTS IN THE MEDICAL WORLD SO I WOULD GLADLY PAY INTO A COLLECTIVE POOL INSURANCE IF I THOUGHT THERE WAS A CHANCE IT WOULD OPERATE ACCORDING TO THE TIGHTWAD PRINCIPLES I MUST APPLY IN MY OWN BUSINESS HEALTHCARE COSTS WILL NOT COME DOWN UNTIL CONSUMERS GET OFF THEIR DUFFS THEY NEED TO KEEP THEIR OWN RECORDS DO SOME HOMEWORK AND ASK A LOT OF QUESTIONS ON THE ARMY MODEL THIS COUNTRY NEEDS TO TRAIN THOUSANDS OF CORPSMEN OR FOR WANT OF A BETTER TERM QUASIMEDICS AND LEAVE THEM ALONE TO PRACTICE I THINK NOTHING OF LETTING A BRIGHT KID FIX MY COMPUTER OR SOMEONE WITH A HIGHSCHOOL EDUCATION SET THE BRAKES ON MY CAR I'LL LET A PARALEGAL OR A COMPUTER WRITE MY WILL AND I'M READY TO LET SOMEONE WITHOUT A QUARTERMILLIONDOLLAR EDUCATION WORK ON MY BODY IN THIS ECONOMY ALONE OR TOGETHER WE CAN NO LONGER AFFORD STANDARD CARE MR BATES WRITES COMPUTER SOFTWARE AND IS THE AUTHOR OF THE COMPUTER COOKBOOK DOUBLEDAY 9305060001 930506 WHO'S NEWS MAGAININ PHARMACEUTICALS INC MAGAININ PHARMACEUTICALS INC PLYMOUTH MEETING PA LEONARD S JACOB 44 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER A NEW POST DR JACOB HAD BEEN EXECUTIVE VICE PRESIDENT OF RESEARCH AND DEVELOPMENT 9305060098 930426 LETTERS TO THE EDITOR PEER REVIEW DOESN'T STAND UP IN COURT DAVID E BERNSTEIN'S RULE OF LAW COLUMN JUNK SCIENCE IN THE COURTROOM OPED PAGE MARCH 24 ADVOCATES THAT THE DISCRETION NOW EXERCISED BY IMPARTIAL FEDERAL JUDGES BE TRANSFERRED TO THE EDITORS OF PEERREVIEWED PROFESSIONAL JOURNALS TO DETERMINE WHICH SCIENTISTS WILL BE PERMITTED TO GIVE EXPERT TESTIMONY APPLICATION OF THIS VERSION OF THE FRYE RULE TO CIVIL CASES WOULD HAVE RESULTED IN BARRING THE TESTIMONY OF LOUIS PASTEUR ON THE CAUSES OF INFECTION NATHAN PRITIKIN ON THE CAUSES OF HEART DISEASE AND COUNTLESS OTHER PIONEERS OF SCIENTIFIC BREAKTHROUGHS WHO CHALLENGED ERRONEOUS ESTABLISHMENT THEORIES IT TOOK MORE THAN 20 YEARS FOR PASTEUR'S GERM THEORIES TO BE ACCEPTED BY THE FRENCH MEDICAL ESTABLISHMENT AND A CENTURY LATER A LIKE PERIOD FOR HEART SPECIALISTS TO RECOGNIZE PRITIKIN'S THEORIES ON THE CURATIVE POWERS OF EXERCISE AND LOWFAT DIETS THE PASSAGE OF A FULL GENERATION IN EACH CASE WAS NO COINCIDENCE AS MAX PLANCK FOUNDING FATHER OF QUANTUM THEORY WROTE AN IMPORTANT SCIENTIFIC INNOVATION RARELY MAKES ITS WAY BY GRADUALLY WINNING OVER AND CONVERTING ITS OPPONENTS IT RARELY HAPPENS THAT SAUL BECOMES PAUL WHAT DOES HAPPEN IS THAT ITS OPPONENTS GRADUALLY DIE OUT AND THAT THE GROWING GENERATION IS FAMILIARIZED WITH THE IDEA FROM THE BEGINNING THE LEADING AUTHORITIES ON PEER REVIEW HAVE DOCUMENTED MANY INSTANCES OF ABUSE AND EVEN OUTRIGHT FRAUD ARISING FROM THE SELFPERPETUATING INCESTUOUS PEER REVIEW SYSTEM SEE BETRAYERS OF THE TRUTH BY WILLIAM BROAD AND NICHOLAS WADE AND PEERLESS REVIEW BY DARYL CHUBIN AND EDWARD HACKETT THEIR FINDINGS MAKE IT CLEAR THAT PEER REVIEW IS DESIGNED TO ASSIST EDITORS IN DECIDING WHAT TO PUBLISH RATHER THAN TO DETERMINE TRUTH ACCORDINGLY IT IS NOT MORE RELIABLE OR MORE RIGOROUS THAN COURTROOM CROSSEXAMINATION WHICH HAS BEEN EFFECTIVE IN DISCREDITING CHARLATANS FOR CENTURIES MR SPEISER A LAWYER IS THE AUTHOR OF 44 BOOKS ON LAW AND ECONOMICS AND IS ON THE HONORARY BOARD OF EDITORS OF THE JOURNAL OF POST KEYNESIAN ECONOMICS A PEERREVIEWED JOURNAL THE ARTICLE CONFUSED THE MAIN ISSUES IN THE CASE DAUBERT V MERRELL DOW PHARMACEUTICALS CURRENTLY BEFORE THE SUPREME COURT AND IN PARTICULAR THE DIFFERENCES BETWEEN SCIENTIFIC AND LEGAL PROCESSES WHICH DIFFER IN PURPOSE RELIABILITY AND EFFECT IN ADVOCATING ADMISSIBILITY OF EXPERTWITNESS TESTIMONY IN COURT ONLY WHEN IT IS PEERREVIEWED AND GENERALLY ACCEPTED BY SCIENTISTS THE ARTICLE WRONGLY IMPLIES THAT CORPORATE DEFENSE LAWYERS ARE CURRENTLY LEGALLY BARRED FROM CROSSEXAMINING EXPERT WITNESSES WHO TESTIFY FOR PLAINTIFFS THIS IS NOT THE CASE IN AN AMICUS CURIAE BRIEF SUBMITTED TO THE SUPREME COURT IN THE DAUBERT CASE WE JOINED OTHERS IN URGING REJECTION OF BOTH THE GENERAL ACCEPTANCE STANDARD AND THE USE OF SCIENTIFIC PEER REVIEW AS A MEASURE OF SUCH ACCEPTANCE OUR BRIEF IS BASED ON EXTENSIVE EXPERIENCE WITH BOTH PEER REVIEW AND THE LEGAL SYSTEM'S OWN PROCESS FOR ESTABLISHING THE TRUTH THROUGH CROSSEXAMINATION PEER REVIEW IS A PROCESS IN WHICH UNPAID SCIENTISTVOLUNTEERS REVIEW SCIENTIFIC STUDIES BUT DO NOT REPLICATE THE EXPERIMENTS OR EVEN REVIEW THE RAW DATA THE TIME SPENT VARIES BUT OFTEN IS MINIMAL AVERAGING FEWER THAN 25 HOURS PER STUDY REVIEWED WHATEVER THE OUTCOME OF THE REVIEW PUBLICATION IS NORMALLY AT THE DISCRETION OF THE EDITOR WHO MAY ACCEPT OR REJECT IT ACCORDING TO HIS PERCEIVED INTERESTS AND BALANCE OF CONTENT IN THAT PARTICULAR JOURNAL THUS PUBLICATION OF A PEERREVIEWED ARTICLE GIVES ONLY AN ILLUSORY STANDARD FOR GENERAL ACCEPTANCE BY THE SCIENTIFIC COMMUNITY AND CLEARLY A LACK OF PEER REVIEW AND PUBLICATION BY ITSELF DOES NOT INDICATE THAT RESEARCH IS SUBSTANDARD SCRUTINY IN COURT IN CONTRAST OFTEN IS LONGERLASTING MORE INTENSIVE IN DEPTH AND MORE EXTENSIVE IN THE BREADTH OF THE SUBJECTS EXAMINED IT IS NOT UNUSUAL FOR A CROSSEXAMINATION OF AN EXPERT WITNESS TO LAST SEVERAL DAYS TO REQUIRE LINEBYLINE DEFENSE OF PUBLISHED OR UNPUBLISHED STATEMENTS AND TO OPEN UP EVERYTHING THE WITNESS HAS EVER DONE OR SAID PROFESSIONALLY TO EXAMINATION AND CHALLENGE THE PEER REVIEW SYSTEM OFFERS NOTHING REMOTELY COMPARABLE TO THIS TRULY TRYING EXPERIENCE THIS COMPARISON IS NOT A CRITICISM OF PEER REVIEW WHOSE PURPOSE IS NOT TO ESTABLISH GENERAL ACCEPTANCE OF SCIENTIFIC RESEARCH ON THE CONTRARY SCIENTISTS WANT AND NEED TO KNOW AND TEST THE MINORITY POINT OF VIEW THE REANALYSIS OF EARLIER WORK THE CURRENT HERESY THAT WILL BECOME NEXT YEAR'S MAINSTREAM THOUGHT BUT PEER REVIEW IS NEITHER A GUARANTEE OF GOOD SCIENCE NOR A REPLACEMENT OF A LEGAL PROCESS IN WHICH A JUDGE OR JURY MUST DECIDE QUESTIONS OF LIFE AND DEATH CAUSATION OF ILLNESS AND INJURY AND FINANCIAL LIABILITIES THAT CAN RUN TO MILLIONS OF DOLLARS FOR ISSUES OF THIS KIND WE SHOULD CONTINUE TO RELY ON OUR LEGAL SYSTEM'S ESSENTIAL PROTECTION OF CROSSEXAMINATION SEE RELATED LETTER LETTERS TO THE EDITOR CIRCUIT RIDERS WSJ MAY 6 1993 9304260090 YY93 MM05 9305060050 930416 POTOMAC WATCH WHY JAPAN SECRETLY LIKES SAMURAI CLINTON BY PAUL A GIGOT A WEAK JAPANESE PRIME MINISTER HAS SUPPOSEDLY COME TO WASHINGTON TO MEET A DYNAMIC YOUNG US PRESIDENT WHO WILL FINALLY HAND THE DEVIOUS FOREIGNERS THEIR LUNCH SO WHY DOES BILL CLINTON'S JAPAN POLICY LOOK SO MUCH LIKE NICHOLAS BRADY'S THIS IS THE PRESIDENT AFTER ALL WHO HAS TALKED ABOUT JAPAN AS THE MORAL EQUIVALENT OF DRUG MANUFACTURERS IF NOT YET OF DRUG DEALERS HE TOLD BORIS YELTSIN THAT WHEN JAPAN TELLS US YES OFTEN IT MEANS NO A CHEAP SHOT HEARD 'ROUND THE WORLD EARLIER HE RESPONDED TO NEWS THAT US COMPUTER CHIPS HAD REACHED A LONGTIME GOAL OF 20 OF THE JAPANESE MARKET WITH A PUBLIC RIFF ABOUT A JAPAN THAT NEVER SEEMS TO CHANGE MICKEY KANTOR THE SELFDESCRIBED LAWYER FOR US TRADE IS ALSO PAWING THE GROUND FOR SINS TO LAY ON THE HAPLESS KIICHI MIYAZAWA WHO MAY NOT LAST IN POWER ANOTHER THREE MONTHS THE JAPANESE MUST BE SHAKING IN THEIR GOLF CARTS EXCEPT THAT WHEN THEY LOOK AT THE ACTUAL POLICY THE JAPANESE MUST BE SMILING AT THE HAPLESS AMERICANS FOR WHAT THE BENTSEN TREASURY IS ONCE AGAIN URGING ON THEM IS THE SAME OLD MEANS TO SOLVE THE SAME OLD PROBLEM THAT IS IT WANTS JAPAN TO REDUCE ITS TRADE SURPLUS BY DEVALUING THE DOLLAR AGAINST THE YEN AND BY GOING ON A GOVERNMENT SPENDING BINGE TO BUY MORE IMPORTS STRIPPED OF THE TOUGHGUY TALK THIS IS NO DIFFERENT FROM WHAT THE BRADY TREASURY AND BEFORE THAT THE BAKER TREASURY AND BEFORE THAT THE BLUMENTHAL TREASURY URGED ON JAPAN THE DOLLAR IS AT ITS POSTWAR LOW AGAINST THE YEN THE TRADE DEFICIT IS STILL WITH US JAPAN'S ECONOMY IS WEAKER THAN EVER BUT SOMEHOW THE NEXT TIME IS GOING TO BE A CHARM CLINTONITES DENY THEY'RE DEVALUING BUT DON'T TAKE MY WORD FOR IT TAKE FRED BERGSTEN'S THEY'VE BEEN PUSHING A STRONGER YEN AGAINST ALL CURRENCIES SAYS THE ECONOMIST WHO WORKED IN THE CARTER TREASURY WITH DEPUTY TREASURY SECRETARY ROGER ALTMAN AND NOW HAS PULL WITH CLINTON OFFICIALS MR BERGSTEN KNOWS A DEVALUATION WHEN HE SEES IT HAVING BEEN SPOTTED AT THE SCENE OF EVERY CURRENCY CRACKUP SINCE THE NIXON ERA HE IS AT LEAST CONSISTENT HIS ARGUMENT NOW IS THAT THE YEN SHOULD RISE SO JAPAN'S TRADE SURPLUS WILL FALL LLOYD BENTSEN HAS PICKED UP THE THEME AND CURRENCY TRADERS HAVE DRIVEN THE DOLLAR TO 113 YEN A HISTORIC LOW MR BERGSTEN THINKS IT OUGHT TO GO TO 100 BUT HE AND VARIOUS TREASURIES WERE ALSO URGING DEVALUATION WHEN THE YEN WAS 250 THEN 150 THEN 134 WHY NOW STOP AT 100 MOREOVER IF DEVALUATION EVER SOLVED ANYTHING BRAZIL WOULD BE A SUPERPOWER LAWRENCE KUDLOW THE BEAR STEARNS ECONOMIST POINTS OUT THAT TO PUSH UP THE YEN JAPAN WILL HAVE TO TIGHTEN MONETARY POLICY TO PRINT FEWER YEN THIS WILL RETARD THE VERY GROWTH ITS BIG SPENDING PROGRAM IS SUPPOSED TO SPUR IN ANY EVENT MUCH OF JAPAN'S CURRENT TRADE SURPLUS IS THE RESULT OF ITS RECESSION WHAT JAPAN REALLY NEEDS IS AN INCENTIVESPURRING TAX CUT THE DIRTY LITTLE SECRET HERE IS THAT THE JAPANESE LIKE THE BENTSENBERGSTEN POLICY A STRONG CURRENCY MAKES JAPANESE COMPANIES MORE COMPETITIVE BY FORCING THEM TO CUT COSTS AND BY LOWERING PRICES OF RAWMATERIAL IMPORTS THE CURRENCY COPOUT ALSO LETS THEM AVOID FACING UP TO THE MERCANTILIST LAWS AND CARTELS THAT PROTECT JAPANESE PRODUCERS AT THE EXPENSE OF CONSUMERS AND ARE THE REAL ROOT OF JAPAN'S TRADE PROBLEMS MEANWHILE THE RULING POLITICIANS FROM THE LIBERAL DEMOCRATIC PARTY IN DEEP SUSHI WITH JAPANESE VOTERS LOVE THE IDEA OF A 117 BILLION PORKBARREL SPENDING SPREE MR CLINTON MUST BE JEALOUS THERE'S NO BOB DOLE TO FILIBUSTER IN JAPAN THE BROADER DANGER IN ALL OF THIS IS LESS ECONOMIC THAN GEOPOLITICAL FOR WHEN THIS POLICY FAILS US PROTECTIONISTS WILL ONLY SHRIEK LOUDER AND HOW WILL MR CLINTON RESPOND THEN MANY OF HIS ADVISERS SUCH AS DEREK SHEARER AT COMMERCE AND LAURA TYSON IN THE WHITE HOUSE WILL PUSH FOR TRADE RETALIATION AND GUARANTEED MARKET SHARES BUT THIS WOULD ONLY REINFORCE THE JAPANESE MERCANTILISTS WHOM THE CLINTONITES SAY THEY WANT TO DEFEAT AS OLD JAPANHAND PETER DRUCKER OBSERVES IN FOREIGN AFFAIRS MAGAZINE THE COLD WAR SECURITY ORDER NO LONGER EXISTS TO PAPER OVER USJAPAN TRADE FRICTION YET THIS RELATIONSHIP IS MORE IMPORTANT THAN EVER IN AN ASIA WITH THE RISING MILITARY POWER OF CHINA AND PERHAPS A NUCLEAR NORTH KOREA THE WORLD DOESN'T NEED A JAPAN FRIGHTENED OR ANGRY ENOUGH TO REARM ITSELF JAPAN INC IS IN DISARRAY MR DRUCKER SAYS IT'S IN THE INTERESTS OF THE US TO SEE THAT THE JAPAN THAT EVOLVES IS ONE THAT IS MORE OPEN AND LESS MERCANTILIST AND FINDS ITS NEW NATIONAL INTEREST IN COOPERATING WITH AMERICA SO WHAT TO DO ONE OF THE MORE INTRIGUING PROPOSALS IS THE OLD BUT RADICAL IDEA OF NEGOTIATING A USJAPAN FREETRADE DEAL SOME OF THE SMARTER BUSH OFFICIALS SUCH AS THE STATE DEPARTMENT'S ROBERT ZOELLICK WERE COMING AROUND TO THE IDEA LAST YEAR IN THE LATEST POLICY REVIEW CALIFORNIA REP DAVID DREIER ARGUES CONVINCINGLY THAT SUCH A STRATEGY IS THE BEST WAY TO TARGET AND ALTER THE JAPANESE ZONING DISTRIBUTION AND OTHER LAWS THAT DRIVE AMERICAN TRADERS SO CRAZY SUCH AN ACCORD WOULDN'T REPLACE A GLOBAL TRADE AGREEMENT BUT WOULD SUPPLEMENT AND REINFORCE IT THIS IS PROBABLY TOO MUCH TO EXPECT FROM AN ADMINISTRATION THAT IS HALFHEARTED EVEN ABOUT FREE TRADE WITH MEXICO BUT IF ITS VAUNTED REVIEW OF USJAPAN RELATIONS PRODUCES ONLY BRADY PLUS THAT IS NICK BRADY POLICIES PLUS MORE TRADE FRICTION IT SHOULD AT LEAST DROP THE PRETENSE THAT ANYTHING'S CHANGED SEE RELATED LETTER LETTERS TO THE EDITOR AMERICA'S GREATEST GIFT TO JAPAN CHEAP DOLLAR WSJ MAY 6 1993 9304160109 YY93 MM05 9305060010 930426 LETTERS TO THE EDITOR FEWER GAYS MORE HOMOPHOBIA I AM FASCINATED BY DR J GORDON MUIR'S OBSESSION WITH THE EXACT PERCENTAGE OF OUR SOCIETY THAT IS HOMOSEXUAL HOMOSEXUALS AND THE 10 FALLACY EDITORIAL PAGE MARCH 31 IT'S EQUALLY INTERESTING THAT THE POLITICS OF DR MUIR AND OTHERS WHO WANT TO PROVE THERE ARE FEWER HOMOSEXUALS THAN KINSEY POSTULATED SEEM TO ALIGN MORE NEARLY WITH SAY PAT ROBERTSON THAN BILL CLINTON JUST WHAT IS DR MUIR'S POINT WHAT IS THE PURPOSE OF HIS ARGUMENTS IF ONLY 1 OR 2 OF US ARE HOMOSEXUALS WILL IT THEREFORE BE MORE OK TO TREAT THEM BADLY WOULD THE POLITICAL RIGHT'S TREATMENT OF HOMOSEXUALS AS LESS THAN HUMAN AND CERTAINLY LESS THAN AMERICAN BE SOMEHOW LESS OBNOXIOUS IF THERE ARE ONLY A FEW OF THEM IF THERE ARE ONLY A FEW WILL IT BE ALL RIGHT TO LEGISLATE AGAINST THEM IN SUCH A WAY THAT IT IS AS IF OUR CONSTITUTION HAD BEEN AMENDED TO INSERT THE PHRASE EXCEPT HOMOSEXUALS ANY PLACE THE WORDS ALL CITIZENS OR EACH CITIZEN APPEAR IN THAT DOCUMENT SETTING FORTH THE RIGHTS OF AMERICAN CITIZENS I AM UNABLE TO UNDERSTAND WHY DR MUIR ET AL ARE SO OBSESSED WITH THE SEXUAL BEHAVIOR OF THEIR FELLOW CITIZENS ARE THERE REALLY SO FEW PROBLEMS IN THE WORLD THAT THEY HAVE NOTHING MORE IMPORTANT TO WORRY ABOUT OR FOR THAT MATTER THAT THE WALL STREET JOURNAL HAS NO BETTER USE TO MAKE OF ITS EDITORIAL PAGES THAN TO PUBLISH THIS NONSENSE AND WHAT KIND OF MIND IS IT THAT DEVOTES APPARENTLY YEARS TO STUDYING WHETHER THERE ARE 30 MILLION OR THREE MILLION AMERICAN HOMOSEXUALS THE MAN HAS ACTUALLY WRITTEN A BOOK ABOUT THIS I AM REMINDED OF MY ELDERLY MOTHER WHO WHEN ANITA BRYANT WAS LEADING SOME KIND OF CRUSADE ABOUT HOMOSEXUALITY IN FLORIDA ASKED ME WHO IS THAT WOMAN AND WHY WOULD ANYBODY CARE WHAT SHE HAS TO SAY I FIND DR MUIR EQUALLY PUZZLING DR MUIR PRESENTS IN AN IMPERSONAL PROFESSORIAL MANNER AN ISSUE THAT NEVERTHELESS HAS BEHIND IT THE SNARL OF HOMOPHOBIA ITS RAISON D'ETRE SEEMS TO BE THE CONTENTION THAT EVIL LIES HAVE BEEN PERPETRATED UPON GOOD CLEAN SUBURBANRANCHHOUSEDWELLING AMERICANS AND THEIR 23 CHILDREN BY PEDOPHILIAC HOMOSEXUALS AND THEIR MADSCIENTIST READ KINSEY ENDORSERS WHO DESIRE PRECIOUS TAX DOLLARS TO FUND MORE RESEARCH INTO A CURE FOR A DISEASE MADE REDUNDANT BY THEIR ALREADY SICK AND DEVIANT SEXUAL PREFERENCE AM I RIGHT WHY ELSE PAINT A RIDICULOUSLY MONSTROUS PICTURE OF ALFRED KINSEY WHY ELSE TRY TO FIX THE ALREADY INADEQUATE PERCENTAGE OF HOMOSEXUALS TO SO MINUSCULE A MINORITY THAT THERE CAN BE NO DOUBT WHATSOEVER IN THE ALREADY BLINKERED MINDS OF THE UNSOPHISTICATED AND THE CONGENITALLY HOSTILE THAT GAYS AND LESBIANS ARE FEW AND ARE THEREFORE STRANGER AND MORE EXPENDABLE LESS DESERVING OF BASIC RIGHTS AND MORE DESERVING OF WHATEVER PLAGUES AND STRIFE AN ANGRY GOD CARES TO SEND UPON THEM ACCORDING TO DR MUIR'S ARTICLE A GREATER PERCENTAGE OF HOMOSEXUALS WAS FOUND BY KINSEY SIMPLY BECAUSE HE RATHER PERVERSELY CHOSE TO USE AS SUBJECTS FOR HIS EXPERIMENTS PRISONERS SEX OFFENDERS MALE PROSTITUTES THOSE WHO ATTENDED SEX LECTURES AND FOLKS WITH UNSAVORY FRIENDS AMONG UNDERWORLD FIGURES AND LEADERS OF HOMOSEXUAL GROUPS THOSE WELLKNOWN BOGYMEN IN CONTRADISTINCTION PEOPLE OF INTEGRITY SUCH AS CHURCH ATTENDERS WOULD HAVE GIVEN FAR MORE CORRECT RESULTS HAD KINSEY ONLY KNOWN WITH HOMOSEXUALS REPRESENTING 1 OR LESS OF THE POPULATION THE MILITARY ESTABLISHMENT'S CONCERNS ABOUT GAYS IN THE ARMED FORCES LOOKS EVEN MORE EXAGGERATED SEE RELATED LETTER LETTERS TO THE EDITOR KINSEY HAS NO CLOTHES WSJ MAY 6 1993 9304260072 YY93 MM05 9305060110 930325 NATIONAL SERVICE AND FIDEL'S SUGAR CANE BY JOSHUA GILDER AMONG THE MOST CELEBRATED ITEMS IN PRESIDENT CLINTON'S ECONOMIC PACKAGE HEADED FOR A SENATE VOTE SOON IS HIS PROGRAM FOR NATIONAL SERVICE A PLAN HE ALSO HAS CALLED A NEW DOMESTIC PEACE CORPS WHEREBY STUDENTS WOULD BE ABLE TO PAY OFF COLLEGE LOANS WITH COMMUNITY SERVICE FOR THOSE WHO LIKE THE IDEA I OFFER AS A CAUTIONARY TALE THE ACCOUNT OF MY OWN EXPERIENCE AS A BENEFICIARY OF THE FIRST DOMESTIC PEACE CORPS 25 YEARS AGO THAT PROGRAM STARTED BY LYNDON JOHNSON IN 1964 WAS OFFICIALLY DUBBED VISTA FOR VOLUNTEERS IN SERVICE TO AMERICA ALTHOUGH IT DIDN'T HAVE THE COLLEGE LOAN COMPONENT OF THE CLINTON PLAN IT WAS REMARKABLY SIMILAR IN THE WAY IT WAS SOLD TO THE AMERICAN PEOPLE AS A WAY OF TAPPING THE ENERGY AND IDEALISM OF OUR NATION'S YOUTH AND DIRECTING IT TOWARD THE POOR ESPECIALLY IN THE GHETTOS AS A SOPHOMORE AT THE PUBLIC HIGH SCHOOL IN SCARSDALE A WELLTODO SUBURB JUST OUTSIDE NEW YORK CITY I DIDN'T EXACTLY FIT THE PROFILE OF YOUR TYPICAL GHETTO RESIDENT BUT TO BEN AND JERRY THAT WAS THE POINT BEN AND JERRY NOT OF ICECREAM FAME WERE TWO VISTA VOLUNTEERS WHO HAD COME TO SCARSDALE TO ORGANIZE A LOCAL CHAPTER OF THE SDS THIS WAS BEFORE THE SDS OR STUDENTS FOR A DEMOCRATIC SOCIETY HAD TURNED VIOLENT IT WAS STILL JUST A STUDENT ORGANIZATION ALBEIT A STRONGLY LEFTIST ONE AND I GOING THROUGH MY 1960SSTYLE ADOLESCENT REBELLION ACCOMPANIED MY FRIENDS TO A MEETING BEN AND JERRY WERE OLDER COLLEGE GRADUATES I BELIEVE BEARDED AND AFFABLE I REMEMBER WE SAT AROUND IN AWE AS THEY TALKED TO US ABOUT THE SDS AND THE US WAR ON THE PEOPLE OF VIETNAM THEIR MISSION IN SCARSDALE THEY SAID WAS TO RADICALIZE THE SONS AND DAUGHTERS OF THE MIDDLE CLASS AND SO BRING ON THE REVOLUTION BEN AND JERRY CLEARLY ENJOYED THE IRONY OF GETTING THE MIDDLE CLASS TO PAY THROUGH THE VISTA PROGRAM FOR ITS OWN SUBVERSION AT FIRST OUR MEETINGS ENTAILED COMPLAINING ABOUT THE FASCISTIC SCARSDALE HIGH SCHOOL ADMINISTRATION BUT ALONG AROUND THE THIRD MEETING BEN AND JERRY GOT MORE SERIOUS THEY TOLD US ABOUT THE TROUBLE COMRADE FIDEL WAS HAVING WITH HIS SUGAR HARVEST ALL PROGRESSIVE PEOPLES WERE EXPRESSING THEIR SOLIDARITY WITH OUR BROTHERS IN CUBA BY JOINING THE VENCEREMOS BRIGADE AND FLYING DOWN TO CUBA TO CUT SUGAR CANE FOR A 15YEAROLD WHO WAS AT THAT TIME SAVING HIS ALLOWANCE TO BUY THE LATEST JEFFERSON AIRPLANE ALBUM TRAVELING TO CUBA WAS PROHIBITIVELY EXPENSIVE BEN AND JERRY HELPFULLY EXPLAINED HOWEVER THAT IF WE DIDN'T HAVE THE MONEY OURSELVES AND IF OUR PARENTS WOULDN'T PAY FOR IT THEN MONEY COULD BE FOUND MY MIND GROUND ITS GEARS TRYING TO SHIFT UP INTO THAT CONCEPT SOMEBODY WAS GOING TO PAY MY WAY TO CUBA TO CUT SUGAR CANE WHO WERE THESE GENEROUS PEOPLE I ASKED BEN AND JERRY SAID THEY WOULD RATHER NOT SAY BUT THERE WERE PEOPLE WITH MONEY WHO BELIEVED IN THE CAUSE REALLY I TRIED TO CALCULATE HOW MUCH SUGAR CANE I WOULD HAVE TO CUT TO EVEN PAY BACK THE COST OF THE PLANE TICKET I'D LIKE TO SAY I HAD A SUDDEN REVELATION OF WHAT WAS WRONG BUT THAT DIDN'T COME UNTIL MANY YEARS AFTERWARD WHEN I SAW A DOCUMENTARY WITH INTERVIEWS OF SEVERAL STUDENTS WHO WENT DOWN ON THE VENCEREMOS BRIGADES THEY DESCRIBED VERY LITTLE CANE HARVESTING BUT A LOT OF COMMUNIST INDOCTRINATION VOLUNTEERS WHO SHOWED PROMISE WERE PERSUADED TO GO FOR FURTHER STUDY IN THE SOVIET UNION WHERE THEY WERE RECRUITED BY THE KGB AT THE TIME I WAS MOSTLY CONCERNED ABOUT MY COMING MIDTERMS BUT I SUPPOSE MY COMMITMENT TO THE REVOLUTION WASN'T REALLY THAT STRONG EITHER IN THE END NO ONE IN OUR GROUP SIGNED UP BEN AND JERRY STOPPED COMING AROUND AND THE SCARSDALE CHAPTER OF THE SDS DISBANDED WHETHER BEN AND JERRY'S SUPERIORS IN VISTA KNEW WHAT THEY WERE UP TO I HAVE NO IDEA BUT THE RECORD SUGGESTS MY EXPERIENCE WASN'T UNIQUE THE RADICALIZATION OF VISTA BECAME ENDEMIC IN THE '70S AND LIKE THE LEGAL SERVICES CORP ITS VOLUNTEERS BECAME NOTORIOUS FOR CONFRONTATIONAL TACTICS ORGANIZING TENANT STRIKES AND SUCH THIS CONTINUED UNTIL THE '80S WHEN THE REAGAN ADMINISTRATION IN YET ANOTHER EXAMPLE OF ITS CALLOUS INDIFFERENCE TO THE POOR CUT VISTA'S BUDGET SEVERELY THE MOST INTERESTING THING ABOUT THE EPISODE HOWEVER IS THE RESPONSE I GET FROM LIBERALS WHEN I MENTION MY EXPERIENCE WITH BEN AND JERRY THEY ARE SHOCKED SHOCKED BUT NOT THAT THE US GOVERNMENT WAS FUNDING SOVIET RECRUITMENT THEY ARE SHOCKED AT MY MCCARTHYITE TACTICS IF WHAT I SAY IS TRUE I'M TOLD IT ILLUSTRATES NOTHING MORE THAN THAT SOME IDEALISTIC YOUNG PEOPLE GOT CARRIED AWAY IN THE '60S THE FACT IS THAT THE UNSEEMLY SIDE OF THE RADICAL LEFT EXISTS QUITE COMFORTABLY UNDER THE INSTITUTIONAL UMBRELLA OF LIBERAL ACTIVIST GROUPS YES EVEN TODAY WHEN IT BECAME APPARENT THAT PRESIDENTELECT CLINTON'S CLUSTER COORDINATOR FOR EDUCATION LABOR AND THE HUMANITIES JOHNNETTA COLE WAS A MEMBER OF THE NATIONAL COMMITTEE OF THE VENCEREMOS BRIGADE IN THE 1970S AND IS STILL AN ARDENT SUPPORTER OF CASTRO THE RESPONSE OF THE CLINTON TRANSITION TEAM WAS A PEEVISH SO WHAT MS COLE DIDN'T GET THE TOP JOB SHE WAS EXPECTING BUT DONNA SHALALA THE NEW HEAD OF THE DEPARTMENT OF HEALTH AND HUMAN SERVES WHO HAD RECOMMENDED MS COLE FOR HER PRESENT JOB AS PRESIDENT OF SPELMAN COLLEGE IN ATLANTA OBVIOUSLY SUFFERED NO EMBARRASSMENT NOW THAT SUPPORT FOR CUBA APPEARS MORE AND MORE LIKE A FUTILE EXERCISE IN LEFTWING NOSTALGIA THE ACTIVIST AGENDA IS FOCUSING ON DOMESTIC POLICY SPECIFICALLY TOWARD CHILDREN WE SEE THE CUTTING EDGE IN THE NEW YORK CITY SCHOOL SYSTEM WHERE THE RECENT PUSH HAS BEEN FOR DIVERSITY INCLUDING LESSONS IN THE GAY AND LESBIAN LIFESTYLE AS IN THE PAST THE LEFT WANTS THE GOVERNMENT TO BANKROLL ITS AGENDA AND A DOMESTIC PEACE CORPS IS THE PERFECT VEHICLE WHO IS GOING TO EMPLOY ALL THESE ACTIVIST WANNABES CAN WE DOUBT THAT IT IS THE JOHNNETTA COLE AND DONNA SHALALA TYPES WHO WILL END UP RUNNING THE NEW DOMESTIC PEACE CORPS IS IT HARD TO IMAGINE WHAT KIND OF LESSON THEY WILL BE TEACHING ALL THOSE IDEALISTIC YOUNG PEOPLE WHO SIGN UP FOR NATIONAL SERVICE MR CLINTON IS CLEARLY UNDERESTIMATING HIS BUDGET FOR THE PROGRAM INDEPENDENT ANALYSTS SAY IT COULD COST AS MUCH AS 12 BILLION THAT COULD CUT A LOT OF CANE MR GILDER WHO WAS A SPEECHWRITER FOR RONALD REAGAN IS A WRITER LIVING IN NEW YORK SEE RELATED LETTER LETTERS TO THE EDITOR VISTA INVESTING IN AMERICA'S FUTURE WSJ MAY 6 1993 9303250141 YY93 MM05 9305050179 930505 WHO'S NEWS GENERAL MOTORS CORP GENERAL MOTORS CORP DETROIT KENNETH R BAKER 46 YEARS OLD WAS NAMED VICE PRESIDENT IN CHARGE OF THIS AUTO MAKER'S RESEARCH AND DEVELOPMENT CENTER HE WILL CONTINUE TO MANAGE GM'S ELECTRICVEHICLE PROGRAM MR BAKER SUCCEEDS ROBERT A FROSCH 64 WHO PLANS TO RETIRE IN JUNE 9305050178 930505 WHO'S NEWS CARTER HAWLEY HALE STORES INC CARTER HAWLEY HALE STORES INC LOS ANGELES THIS DEPARTMENTSTORE RETAILER NAMED PATRICIA A WARREN 46 YEARS OLD EXECUTIVE VICE PRESIDENT MERCHANDISING WOMEN'S APPAREL SHE SUCCEEDS LYNNE SPERLING WHO RESIGNED MS WARREN FORMERLY SERVED AS SENIOR VICE PRESIDENT AND GENERAL MERCHANDISE MANAGER APPAREL OF THE BON MARCHE UNIT OF FEDERATED DEPARTMENT STORES INC CINCINNATI 9305050177 930505 WHO'S NEWS BALDOR ELECTRIC CO BALDOR ELECTRIC CO FORT SMITH ARK ROBERT J MESSEY 47 YEARS OLD WAS NAMED A DIRECTOR OF THIS ELECTRIC MOTOR MAKER SUCCEEDING DARRYL R FRANCIS 80 WHO RETIRED MR MESSEY IS CHIEF FINANCIAL OFFICER OF SVERDRUP CORP ST LOUIS 9305050176 930505 WHO'S NEWS TARGET THERAPEUTICS INC TARGET THERAPEUTICS INC FREMONT CALIF GARY R BANG 46 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER MR BANG PREVIOUSLY PRESIDENT OF BAXTER INTERNATIONAL INC'S PHARMASEAL SURGICAL DIVISION SUCCEEDS RICHARD D RANDALL WHO BECOMES CHAIRMAN 9305050175 930505 WHO'S NEWS US LONG DISTANCE CORP US LONG DISTANCE CORP SAN ANTONIO CHARLES P JOHNSON THE 44YEAROLD FORMER DIRECTOR OF CARRIER SALES AT MCI COMMUNICATIONS CORP WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AT THIS COMPANY'S US LONG DISTANCE INC TELECOMMUNICATIONS SUBSIDIARY 9305050174 930505 WHO'S NEWS THOMSON CORP THOMSON CORP TORONTO GERALD D MINTZ 40 YEARS OLD WAS NAMED PRESIDENT OF THIS MEDIA AND FINANCIAL SERVICES COMPANY'S ASSETBACKED SECURITIES GROUP IN NEW YORK HE WAS PREVIOUSLY SENIOR VICE PRESIDENT OF SALES AND MARKETING AT EJV PARTNERS A JOINT VENTURE OF SIX DOMESTIC FIXED INCOME MARKETS DEALERS ASSETBACKED SECURITIES A PART OF THOMSON'S FINANCIAL SERVICES UNIT IS A PROVIDER OF FINANCIAL PRODUCTS TO INVESTORS AND CORPORATIONS 9305050173 930505 WHO'S NEWS TYLER CORP TYLER CORP DALLAS RICHARD C BARNETT THE 54YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS HOLDING COMPANY'S TYLER PIPE INDUSTRIES INC UNIT WAS ELECTED TO THE BOARD HE SUCCEEDS JOHN WARNER 69 WHO RETIRED 9305050172 930505 FIRMS SEEKING TO CUT HOLDER MAILINGS MAY ASK INVESTORS TO PUSH 1' FOR DATA BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE GROWING CONTROVERSY OVER DIMINISHED MAILINGS TO SHAREHOLDERS SOME COMPANIES MAY STOP MASS MAILINGS AND INSTEAD TELL HOLDERS TO CALL AN 800 NUMBER TO GET RECORDED INFORMATION FIRST CHICAGO TRUST CO OF NEW YORK ONE OF THE BIGGEST STOCK TRANSFER AGENTS WILL ANNOUNCE TODAY PLANS TO MARKET TO ITS CLIENTS A NEW TELEPHONE INFORMATION SERVICE PROVIDED BY CLOSELY HELD DIRECT REPORT CORP STOW MASS FIRST CHICAGO IS A UNIT OF FIRST CHICAGO CORP DIRECT REPORT'S SHAREHOLDER DIRECT PROGRAM PLANS TO RECORD QUARTERLY EARNINGS RESULTS NEWS RELEASES AND EXECUTIVE COMMENTS AND THEN MAKE THEM AVAILABLE TO CALLERS WHO DIAL AN 800 NUMBER THE CALLERS WOULD THEN GO THROUGH A SERIES OF CHOICES TO HEAR AN ANNOUNCEMENT OR ASK FOR A WRITTEN COPY OF THE REPORT I WOULD THINK IN THE NEXT FEW MONTHS WE'D HAVE A DOZEN CLIENTS PREDICTED MICHAEL FOLEY VICE PRESIDENT OF FIRST CHICAGO RONALD GRUNER PRESIDENT AND FOUNDER OF DIRECT REPORT SAID COMPANIES THAT REPLACE THEIR MAILED QUARTERLY EARNINGS REPORTS BY HIS SERVICE WILL SAVE ONETHIRD OF THEIR SHAREHOLDER COMMUNICATION COSTS ASSUMING NO MORE THAN 35 OF THE SHAREHOLDERS CALL IN HOWEVER THE INTERACTIVEVOICERESPONSE TECHNOLOGY MAY NOT SATISFY CRITICS OF CORPORATE DISCLOSURE SPREADING OF INFORMATION BY ANY MEANS IS HELPFUL BUT DISSEMINATING THE PHONE NUMBERS TO ALL SHAREHOLDERS WOULD BE A PROBLEM PREDICTED PETER QUICK VICE PRESIDENT OF DISCOUNT BROKER QUICK & REILLY INC MR QUICK HAS RAILED AGAINST COMPANIES ELIMINATING QUARTERLY REPORT MAILINGS TO HOLDERS WHO KEEP STOCK IN STREET NAME AT THEIR BROKERS OFFICES RATHER THAN IN THEIR OWN NAMES DIRECT REPORT ESTIMATES THAT 10 OF THE NATION'S BIGGEST COMPANIES HAVE HALTED MAILING QUARTERLY REPORTS TO STREETNAME HOLDERS WHEN ONE WALT DISNEY CO SHAREHOLDER CHALLENGED THE PRACTICE IN A PROXY FIGHT RECENTLY HIS MOTION RECEIVED A SURPRISINGLY STRONG 16 OF THE VOTE THAT'S A REMARKABLE NUMBER MR QUICK SAID OTHERS QUESTION WHETHER HEARING A RECORDING OF FINANCIAL RESULTS IS AS INFORMATIVE AS SEEING A TABLE OF NUMBERS DIRECT REPORT SAYS THAT IF COMPANIES DESIRE IT CALLERS COULD HAVE A COPY OF THE REPORT MAILED OR FAXED IMMEDIATELY BY PRESSING TELEPHONE BUTTONS COMPANIES CAN ESTABLISH THEIR OWN VOICERESPONSE SERVICES BUT MR GRUNER EXPECTS DIRECT REPORT WILL BE ABLE TO PROVIDE THE SERVICE MORE CHEAPLY AND WITH BETTER SECURITY DIRECT REPORT ALSO PLANS TO MARKET THE SERVICE TO BROKERAGE HOUSES SO THAT THEIR CLIENTS WHO CALLED IN ABOUT PARTICULAR STOCKS COULD HEAR THE RECORDINGS MR GRUNER SAID DIRECT REPORT WILL CHARGE COMPANIES 3950 A QUARTER FOR A SUBSCRIPTION AND 24 CENTS TO 30 CENTS A MINUTE THAT CALLERS ARE ON THE LINE BECAUSE MANY INVESTORS PRESUMABLY WON'T BOTHER CALLING THIS COULD BE CONSIDERABLY LESS EXPENSIVE THAN THE 75 CENTS IN PRINTING AND POSTAGE EXPENSES FOR EACH SHAREHOLDER THAT IT COSTS COMPANIES TO MAIL INFORMATION IT'S HARD TO GO OUT AND CAPTURE INDIVIDUAL SHAREHOLDERS WITH AN ECONOMICAL PROGRAM SAID JOHNNIE D JOHNSON A NEW YORK INVESTOR RELATIONS CONSULTANT THIS WAY THOSE WHO ARE INTERESTED ARE DOING THE CALLING